2012 CSR Report Executive Summary

2012 Corporate Social Responsibility

Report Executive Summary

Chairman’s message Banco Sabadell had an extraordinary year in 2012. After successfully passing the stress tests performed by Oliver Wyman on the Spanish banking sector, substantially enhancing its capital and liquidity, and integrating Banco CAM, the Bank now ranks fourth among Spain’s investor-owned banks and is one of the soundest in the industry.

Our banking practices are characterized by professionalism, rigour and excellence; for that reason, we have made a determined effort to restore customers’, the markets’ and society’s confidence in the financial system. Our bank’s values are particularly important in this context: trust, authenticity and transparency, translated into a corporate responsibility policy that is focused on attenuating and avoiding potential impacts of our activity. The bank maintains its leading position in the Spanish market in terms of service quality and satisfaction, among both private and business customers.

After the acquisition of Banco CAM, the institution implemented the necessary action plans to restore customers’ trust and bring service and quality levels into line. In parallel, the group spearheaded a social action plan to facilitate the professional transition of all the employees affected by the downsizing at Banco CAM imposed by the European Commission. To improve their employability, they were offered career counselling, finance in favourable conditions, a shop or office lease with one year rent free, and professional advice.

Banco Sabadell has established measures to ensure that its clients who are most affected by the crisis are not at risk of social exclusion.

In the event of mortgage non-payment, Banco Sabadell works with the customer to find solutions to avoid foreclosure; in no event does it resort to forcible evictions in homes occupied by customers.

Additionally, since January 2013, Banco Sabadell is one of the banks participating in the Social Housing Fund and is fully committed to helping resolve the personal and social circumstances of families in a situation of great vulnerability as a result of problems with their homes.

In addition to the existing range of products for business, in 2012 we launched the “Export to grow” programme, which provides support to small and medium-sized enterprises in the process of internationalization as a means of overcoming the crisis. The programmes offers businesses a range of financial education mechanisms focused on international trade.

As for the environment, the new CBS headquarters building, inaugurated in 2012, is certified Gold under LEED NC and is one the Bank’s six main buildings that are certified to ISO 14001. Banco Sabadell also continued to be very active in funding renewable energy, having allocated 360 million euro to projects in this field.

The achievements of 2012 would not have been possible without the enthusiasm, commitment, professionalism and hard work of the bank’s employees.

In 2013, we expect to successfully complete the acquisition of Banco Mare Nostrum’s branch network and business in Catalonia and Aragon.

We will also continue to implement social responsibility initiatives that generate value for society, in line with our own corporate values.

José Oliu Creus,

Chairman

Banco Sabadell is the fourth-largest finance group Core capital has been strengthened and now stands at

10.42% after capital was increased by 3,092 billion euro in 2012

236,774 shareholders 53.33% independent external Banco Sabadell has been included in the FTSE4Good and FTSE4Good IBEX 4 sustainability indices and is a member of the Ethibel Investment Register

Following the integration of Banco CAM, Banco Sabadell is now Spain’s fourth investor- owned banking group 161 billion euro in assets Net interest income: 1,537,263 thousand euro

A solvent bank Banco Sabadell passed, with satisfactory results, the independent audit of Spain’s leading financial institutions conducted in 2012 by Oliver Wyman and is included in group 0.

Balanced corporate governance A high degree of compliance with corporate governance recommendations.

Creating value and managing the impact on society Promoting economic development Banco Sabadell supports small and medium-sized enterprises because of their important role in job creation, and seeks to provide them with access to appropriate finance.

Gross lending to customers

115,392 million euro

Banco Sabadell was the third-largest provider of ICO funding, with an overall 12.2% share.

Supporting Spanish SMEs with the process of internationalization Banco Sabadell launched the programme “export to grow�. The programme provides support for SMEs in the process of internationalization as a means of overcoming the crisis.

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Banco Sabadell contributes

Avoiding social exclusion On 17 January, the bank joined the agreement to create the social housing fund.

250

homes for evicted families who are in a situation of particular vulnerability

Financial activity and sustainability 360 million euro in finance to renewable energy generation projects

17 projects include the Equator Principles

88%

of which involved renewable energy

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Investing and funding in renewable energy Banco Sabadell, through its wholly owned subsidiary, Sinia Renovables invests directly in power generation projects that use renewable energy.

Signed the Equator Principles The bank adopted the Equator Principles a set of standards developed to ensure that social and environmental risks are identified, assessed and managed when funding large projects.

Environmental products and services • Financing public lighting, installation of biomass-fired boilers and cogeneration plants.

• Energy efficiency leasing product.

• Photovoltaic leasing product.

Credit lines with ethical criteria Banco Sabadell and the European Investment Bank signed an agreement which excludes funding for no ethical industries or activities 400 million euro credit Line for SMEs

Socially responsible investing Ethical and solidarious investment products: • Sabadell BS Inversión Ética y Solidaria, FI • Urquijo Cooperación SICAV

86,696

euro management fee donated to NGOs

• Plan de Pensiones Ético y Solidario • BS ahorro futuro

BanSabadell 25FP adhered to the United Nations Principles of Responsible Investment in the asset owner category

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A long-term relationship 5,502,584 customers 40,000 followers on social networks

Satisfaction level: Private customer

7.71/10

Professionalism, rigor and high standards in banking practices are values that characterize the group. Consequently, after the acquisition of Banco CAM, the group implemented action plans to regain the trust of that former savings bank’s customers and align it with Banco Sabadell in terms of ser vice and quality.

Requirements for a long-term relationship:

1. Trust

Business customer

7.57/10

2. Authenticity 8

3. Communication

Oficina directa 24-hour service available for all of the group’s brands on the customer service channel chosen by the customer: telephone, email and social networks.

Banco Sabadell has a platform, feedback. bancsabadell.com, and an area for suggestions on Facebook which allow customers to offer comments, suggestions and ideas about its products and services.

Financial services adapted to the customer Banco Sabadell has joined the agreement between the Spanish Banking Association (AEB), the Spanish National Securities Market Commission (CNMV) and the Bank of Spain to implement actions in the framework of the Financial Education Plan:

• Teaching guide which contains resources to turn children’s questions about money into opportunities for learning and for dialogue with parents.

• Practical guide to foreign trade, seminars, videoconferences, “pills for improvement”, and case studies of internationalization by SMEs.

#LlegarAntes

Being pioneers

At Banco Sabadell, we believe that being pioneers is the best way to offer our customers the best solutions wherever they may be found and regardless of the channel that is used.

First bank in Spain to have an Android-native mobile banking app.

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You are the key Leadership management and training

15,596

• Corporate development programme for senior executives.

employees

50%

• Corporate management programme aimed at future department heads and newly appointed headquarters managers with subordinates.

of women

% 50%

of men

Equality, work-life balance and integration

35 hours

• Equality plan’s Steering Committee, which consists of representatives of workers and the Bank.

98%

• “Women and Leadership” seminar to raise awareness in business of women’s managerial skills.

of training per employee

of employees receive training

• 316 employees with paternity leave.

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56%

of promotions are of women

2 women

in the Board of Directors

• Employees from over 35 nationalities.

SUMAS programme Banco Sabadell launched the SUMAS programme to assist Banco CAM employees throughout the process of integration.

Specific platform

which includes a section where individual employees can raise queries and receive replies.

Improve employability and generate employment Banco Sabadell launched a social plan to facilitate the relocation of employees who, either voluntarily or forcibly, were affected by Banco CAM downsizing plan.

Promoting solidarity • The employee portal publicizes social action initiatives in which employees can participate.

Specific support

for Banco CAM employees

Career counseling

Professional advice Finance on preferential terms Office or business premises leases with one year rent-free

• 120 employees of the Bank participated in the TV3 Telethon.

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• With the support of employees and customers, the bank raised over 21,000 euro for Unicef survival programmes.

Facilities and environmental management 6

buildings certified to ISO 14001

Signed the Carbon Disclosure Project and CDP Water Disclosure • 93% of the branch network is equipped with centralized lighting and climate control systems.

• 84% of the paper used at corporate headquarters has been recycled

87% 12

of the electricity is purchased from Nexus Renovables, a supply company that is guaranteed

100% Renewable

• Banco Sabadell inaugurated the new BancoSabadell (CBS) office building in Sant Cugat del Vallès which is certified Gold under LEED nC v. 2.2.

• 23% more efficient in terms of energy consumption • 65% in water consumption when compared with a comparable conventional building.

Ethical procurement Supplier Code of Conduct

40%

Procurement contracts include clauses on compliance with environmental criteria, human rights and the Ten Principles of the United Nations Global Compact, as well as acceptance of the Supplier Code of Conduct.

40% of suppliers evaluated to ISO 14001/EMAS

Banco Sabadell has a strategic relationship with its two major technology suppliers, HP and IBM, based on mutual trust and cooperation that contributes to generating added value.

Strategic alliances with its two major technology suppliers

• 268 suppliers • Awarded contracts worth a total of 72 millions euro

3,841,821

euro expended on social and cultural action

Social and cultural action Banco Sabadell operates in this area through: • Banco Sabadell’s Foundation • Banco Herrero’s Foundation • Banco Sabadell’s Sponsorship Commission.

2.3%

6.1%

Aid and solidarity

Social integration

18.6%

2.9%

Others1

0.1% Environment

23.3% Economic development

%

Medical research and healthcare

16.6% Training and education

30.1% Culture

Includes general expenses of the Banco Sabadell Foundation and Banco Herrero Foundation.

1

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