“la Caixa” maintains its high level of solvency (Core Capital at 8.7%) and increases liquidity (22,102 million), with a contained default rate (3.53%) and an increase in allowance coverage to 66%, without making use of its general allowance fund of 1,835 million

The “la Caixa” Group obtains a net profit of 1,228 million without making use of its general allowance fund, with high levels of commercial business

• The institution maintained a high level of solvency with Core Capital at 8.7%, Tier-1 at 9.9% and a Capital Ratio of 11.7%. The Group’s liquidity remains among the highest in the Spanish financial system at 22,102 million, practically all of it immediately accessible.
• Consistent with the “la Caixa” Group’s strategy for extreme prudence, total allowance coverage of 1,543 million has been set aside, mostly against loan insolvencies, to further reinforce the strength of the balance sheet. Allowance coverage continued to improve, rising to 66% (132% if mortgage guarantees are taken into account), while the non-performing loan ratio stands at 3.53%.
• No use was made during the first nine months of the year of the general allowance fund, which has remained at 1,835 million euros since the close of the 2009 financial year, thanks to the capacity to generate income, which offers great financial robustness against future unfavourable environments. Extraordinary net capital gains of 233 million have been allocated in their entirety to allowance coverage.
• Operating costs have fallen to 4%. This has combined with the Group’s strong commercial capacity to give a net operating income figure of 2,724 million euros, with an efficiency ratio of 43%.
• The intense activities of the branch network in a difficult climate helped business volumes rise to 421,338 million (+1.3%), driven by the customer loan portfolio, which increased by 2.2%, and total customer funds, which rose by 0.6%. The Group continues to strengthen its position as a leading institution in the Spanish banking sector, increasing its market share in key areas.
   

Barcelona, 21 October 2010

NOTE.- In so far as it relates to income from investments, this financial information from the “la Caixa” Group for the first nine months of 2010 has been prepared mainly on the basis of estimates, and cannot under any circumstances be used to make forecasts regarding the income of Criteria CaixaCorp, a subsidiary of the “la Caixa” Group, for the same period.

Summary