Executive Summary

Report

2012Corporate Social Responsibility

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.

Chairman’s message

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

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53.33% independent external

Core capital has been strengthened and now stands at

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 bankBanco 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 governanceA high degree of compliance with corporate governance recommendations.

Banco Sabadell is the fourth-largest finance group

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

Banco Sabadell has been included in the FTSE4Good and FTSE4Good IBEX sustainability indices and is a member of the Ethibel Investment Register

236,774shareholders

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Gross lending to customers

Banco Sabadell contributes

Promoting economic developmentBanco 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.

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

Supporting Spanish SMEs with the process of internationalizationBanco 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.

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

Creating value and managing the impact on society

115,392 million euro

250 homes for evicted families

who are in a situation of particular vulnerability

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Financial activity and sustainability

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

Signed the Equator PrinciplesThe 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.

360million euro in finance to renewable energy generation projects

17 projectsinclude the Equator Principles

88% of which involved renewable energy

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Credit lines with ethical criteriaBanco 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 investingEthical and solidarious investment products:

•Sabadell BS Inversión Ética y Solidaria, FI

•Urquijo Cooperación SICAV

•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

86,696 euro management fee

donated to NGOs

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Satisfaction level:

A long-term relationship

Private customer

7.71/10

7.57/10Business customer

5,502,584customers

40,000followers on social networks

Professionalism, rigor and high standards in banking practices are values that characterize the group. Consequently, after the acquisition of Banco CAM, thegroup implemented action plans to regain the trust of that former savings bank’s customers and align it with Banco Sabadell in terms of service and quality. Requirements for a long-term relationship:

1. Trust

3. Communication

2. Authenticity

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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.

#LlegarAntesBeing pioneers

Oficina directa24-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 customerBanco 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.

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56%of promotions are of women

2 womenin the Board of Directors

50%of women

50%of men

You are the key

15,596employees

35 hoursof training per employee

98%of employees receive training

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Leadership management and training•Corporate development programme for

senior executives.

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

Equality, work-life balance and integration•Equality plan’s Steering Committee, which

consists of representatives of workers and the Bank.

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

•316 employees with paternity leave.

•Employees from over 35 nationalities.

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Career counseling

Professional adviceFinance on preferential terms

Office or business premises leases with one year rent-free

Specific platform

which includes a section where individual employees can raise

queries and receive replies.

Specific support

for Banco CAM employees

SUMAS programme

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

Improve employability and generate employmentBanco 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.

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

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

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Facilities and environmental management

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

6buildings certified to ISO 14001

•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.

87% of the electricity is purchased from Nexus Renovables, a supply company that is guaranteed

100% Renewable

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Supplier Code of Conduct

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.

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.

•268 suppliers •Awarded contracts worth a total of 72

millions euro

Ethical procurement

Social and cultural actionBanco Sabadell operates in this area through:

•Banco Sabadell’s Foundation

•Banco Herrero’s Foundation

•Banco Sabadell’s Sponsorship Commission.

40%40% of suppliers evaluated to

ISO 14001/EMAS

Strategic alliances with its two major technology suppliers

3,841,821 euro expended on social and

cultural action

Aid and solidarity

2.3%Social integration

6.1%

Medical research and healthcare

2.9%

Training and education

16.6%

Culture30.1%Economic

development

23.3%

Environment0.1%Others118.6%

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1Includes general expenses of the Banco Sabadell Foundation and Banco Herrero Foundation.