Results2Q10Thursday, July 22nd 2010

1

Bankinter presents its financial statements following format and criteria stated byCircular of Banco de España 4/04.

Bankinter cautions that this presentation contains forward looking statements. Suchforward looking statements are found in various places throughout this document andinclude, without limitation, statements concerning our future business developmentand economic performance. While these forward looking statements represent ourjudgment and future expectations regarding the development of our business ajudgment and future expectations regarding the development of our business, anumber of risks, uncertainties and other important factors could cause actualdevelopments and results to differ materially from our expectations. These factorsinclude, but are not limited to (1) general market , macro-economic, governmentaland new regulations, (2) variation in local and international securities markets,currency exchange rates and interest rates as well as change to market andcurrency exchange rates and interest rates as well as change to market andoperational risk, (3) competitive pressures, (4) technological developments, (5)changes in the financial position or credit worthiness of our customers, obligors andcounterparties.

2

Results AssetQ litQuality

Solvency TheBusiness Business

3

Resilient resultsResilient results

Gross operating -9% 32% operating incomestability

Operational CostsBanking Group

Income from non credit risk businessstability g p risk business

4

The gross operating income shows The gross operating income shows stability despite headwinds

Gross operating income (million €)

-1,8%612,3 601,1

1H09 1H10

5

Increasing diversification of incomegsources

Gross operating income breakdown (million €)

Insurance

32%141,7

24 8

Asset Management

Brokerage

32%24,8

24,2410,3

6

Net Interest Income reflects the effect f th i ld l tiof the yield curve evolution

Net Interest income (million €) Difference between the 12 month

-22,2

Net Interest income (million €)

2 5%

and 3 month Eur12M moving avg

22,2

400,7311,6 1,5%

2,0%

2,5%

302 2

307 6 312 0 303 6

88,78,0

,

0,5%

1,0%302,2

307,6 312,0 303,6

-5,4 -1,0%

-0,5%

0,0%

jun

-08

ag

o-0

8

oct-

08

dic

-08

feb

-09

ab

r-0

9

jun

-09

ag

o-0

9

oct-

09

dic

-09

feb

-10

ab

r-1

0

jun

-10

1H08 1H09 1H10

Basic NII Lag effect Mortgages

7

The ALCO portfolio reduces its contribution to NII

ALCO portfolio’s carry (in million €)

39,7-16,3%

33,2

1H09 1H10

8

Fee income continues to be resilient despite market volatility

Net fees (million €)

1H2010 1H2009 Diff Diff %1H2010 1H2009 Difference Diff. %

Transactional 36,1 36,9 -0,8 -2,2

AUM 23 5 20 4 3 2 15 6AUM 23,5 20,4 3,2 15,6

Insurance 21,1 18,3 2,8 15,4

Broker 20,9 22,2 - 1,3 -5,8

Risk 15,2 12,9 2,3 18,2

Unpayment + other 15,7 25,0 - 9,3 -37,4

Fees received 132,5 135,7 - 3,1 -2,3

Fees paid 32,5 34,6 -2,1 -6,0

Net fees 100,0 101,0 -1,1 -1,1

9

Trading gains are backed by retail businessTrading income(million €)Trading income(million €)

75,685%

Retail client driven

51,9

+Client Business+99% Hedges

+174% Intl. I. Funds

1H09 1H10+31% Intl. equities

10

Other operating results reflect the p gcontribution of LDA insurance business

Other operating results (million €)

97,4

39,4,

1H09 1H10

11

Supported by cost contention efforts Supported by cost contention efforts and efficiency gains

Operational Costs (million €)

-9 2% -8 8%-9,2%Banking

Group29 754 13

-8,8%LDA

comparable

260 236 45,6%236 ,Cost Income ratio

Banking Group

1H09 1H10Banking Group LDA* Intangible Amort.

12* LDA only 2 months in 1H09. Full Year -8,8%.

1H10 pre provision profit continues to h ili d b b ‘09 show resilience and absorbs ‘09

repricing effect.g

Pre provisioning profit (million €)

-13%88,7 8

229 8269,2+17,1%229,8

,17,1%

1H09 1H10Basic Pre Provision Profit Repricing Effectp g

13

Increasing NPL coverage and Increasing NPL coverage and accelerating provisions

Break down by type of provision (in million€)

22,6

74% 110,0

174,474%

coverage ratio

-66,8

1H09 1H10

f

14

Specific Loss recognition acceleration

Generic

1H10 results improve the groups 1H10 results improve the groups solvency and balance sheet structure

1.- Enhanced quality and diversification of income sources

2.- Cost contention, efficiency and productivity gains

3.- Unrealized gains on Balance Sheet untouched

4.- Improved risk coverage and limited use of the generic provisiong p

15

Results 1H10P&L Thousand € jun-10 jun-09 Dif Dif % Interest and related income 569.637 967.637 -397.999 -41,13Interest and related charges 257 948 566 951 309 003 54 50Interest and related charges -257.948 -566.951 309.003 -54,50Net Interest Income 311.689 400.685 -88.996 -22,21Dividend income 11.704 7.580 4.124 54,40Equithy method 4.758 11.636 -6.878 -59,11q y 4.758 11.636 6.878 59,11Net fees and commissions 99.960 101.017 -1.056 -1,05Trading income 75.576 51.944 23.632 45,50Other operating income/expense 97.411 39.391 58.020 147,29Gross Operating Income 601.099 612.253 -11.154 -1,82Personnel expenses -164.043 -154.665 -9.377 6,06General expenses/amortization -159.843 -139.095 -20.748 14,92Pre pro isioning profit 277 212 318 492 41 280 12 96Pre provisioning profit 277.212 318.492 -41.280 -12,96Provisions 2.305 -14.956 17.261 n.rAsset impairment charges -130.241 -110.558 -19.683 17,80Net Operating Profit 149 276 192 978 -43 702 -22 65Net Operating Profit 149.276 192.978 43.702 22,65Gains/losses on disposals of assets -6.015 -1.394 -4.621 331,37Profit Before Taxes 143.261 191.583 -48.322 -25,22Corporate tax -38.050 -52.914 14.864 -28,09

16

Net Income 105.211 138.670 -33.459 -24,13

Best Asset QualityBest Asset Quality

1/2 1/3 No significant

SystemNPL ratio

SystemProblematicAssets

sovereign risk exposureAssets exposure

17

Outperforming the system in NPLs p g yover the cycle

*NPL ratio evolution *

1,9%5,50%

Sector

Bankinter

,Developer loans

o/total loans

1/22,69% 1/2Overall NPL ratio

Vs system

86

88

90

92

94

96

98

00

02

04

06

07

08

09

1T

10

2T

10

18

* Sector data : May 2010

NPL entries continue to slow down

Q t l t NPL t i ( illi €)Quarterly net NPL entries (million €)

121,7

87 9

111,4

87,9

51,3

72,9

,

2Q09 3Q09 4Q09 1Q10 2Q10

19

The non performing book has significant collateral coverage

NPL’s distribution by type of collateral

22%29%

54%LTV of NPL

49%

1sr residence <80% LTV Personal guaranteeOther mortgages

20

Foreclosed assets are low compared to Foreclosed assets are low compared to system levels

- Annual gross additions of foreclosed assets (million €) -

350M€0,6%

market share

22%

268

22%Coverage

o/ accounting value

36%59

23Coverage

o/ appraisal value

23

2008 2009 1H10

21

and show a balanced distribution by and show a balanced distribution by type and geography

- Foreclosed assets by type (in million € )-

10

87

10

87

106Commercial

Coastal

Urban

73

Urban

Land

Other

74

22

Facilitating their disposal with no Facilitating their disposal with no negative impact on results

- Evolution of foreclosed assets sales-

163 18045 00

34,438,3

154 163

120

140

160

180

30,00

35,00

40,00

45,00

+120% sales(annualized)

34,4

60

80

100

15,00

20,00

25,00 13% avg. discountOver gross Book Value

2,8

18

0

20

40

0,00

5,00

10,00

2008 2009 2010

Book Value Num. Assets

23

An outstanding asset quality further i f d h ddi h reinforced when adding up other

problematic assets

- “Problematic assets” (in mill €)-

56%Bankinter System*

NPL 1 217 100 372

56%Coverage vs

31% the systemNPL 1.217 100.372

Substandard 166 59.000

Foreclosures 350 59 700Foreclosures 350 59.700

TOTAL 1.733 219.072

Adj t d ti 3 8% 11 6%

1/3Of the system

0,8% market shareAdjusted ratio 3,8% 11,6%

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* Source Bank of Spain financial stability report and statistics

No significant sovereign exposure with No significant sovereign exposure with reduced mark to market risk

Trading bookN t t S i h i i kNo net exposure to Spanish sovereign riskNo exposure to peripheric UE sovereign risk

HTM portfolio : No mark to market risk2,4bn€: 96% Spain Gov, 4% French Gov.

AFS portfolio : limited mark to market risk0,9bn€: 45% Spain Gov., 11% French Gov., 8% German Gov., 35% Corporate

25

Adequate solvency Adequate solvency l llevels

74% 7,2%bl

1,3bn€NPLCoverageR ti

ComparableCore CapitalRatio

Retail depositsin 2Q10Ratio Ratio in 2Q10

26

We continue to reinforce provisions

Total provisions evolution (million €)

We continue to reinforce provisions

Total provisions evolution (million €)

+17%971 +17%Total

provisions

830971

236572

573328

2Q09 3Q09 4Q09 1Q10 2Q10

G i S ifi F l d A tGeneric Specific Foreclosed Assets

27

Better coverage quality and still significant loss net-out potential

Net NPL entries vs. provisions in the quarter (in %)

74%

26 9

64%alfa

57%74%

18,8

26,9

170%38,6 47,1 170%

Coverage w/ guaranties

System Bankinter

Specific cover Generic coverSpecific cover Generic cover

28

Foreclosed asset coverage levels are also adequate and impact of new BoE provision requirements is lowp q

Maximum potential impact of new BoE provisioning system for real estate assets (million €)syste o ea estate assets ( o €)

Year of provision Additional provision Year of provision requirement

Additional provision requirement

2010 5,9,

2011 26,8

2012 2,3

29* Based on existing stock

Solvency is adequate for the business Solvency is adequate for the business risk profile

Comparable core capital ratio (%)

6,517,210,71

Core w/o deduct. Generic net Core comparable

30

Bankinter has an adequate solvency buffer …

1 100Unrealized

Capital and provision coverage (million €)

1.100capital gains

971 3.183

560

2.083552

560

One year pre prov profit

Excess capital Provisions Totalpre.prov. profit

* 1H2010 annualized 31

… even in heavily stressed scenariosy

S l Solvency buffer

X2 X2 current “problematic asset levels”* (7,6% NPA ratio)

6 Yrs3.183

6 YrsThe highest ever cost of specific provisions (486M€ 2009)

lequivalent to 440bn€ “problematic assets” in the system (23% NPA ratio)p y ( )

* Including foreclosed assets and substandard loans 32

Stress assumptions need to account for the distribution of the book and its qualitythe distribution of the book and its quality

Applying standard expected losses sector wide means under stressing pp y g p gweaker institutions and over stressing lower risk profile ones

IImmaterial exposure to developers* and real estate .

1/2 th NPL ti f th t1/2 the NPL ratio of the system

1/3 the NPL ratio of the system in residential 1/3 the NPL ratio of the system in residential

mortgages (59% of the loan book)

Lower regulatory LGS’s Lower regulatory LGS s

Higher provisioning levels

* Developer loans : 1,9% loan book

Higher provisioning levels

33

Working ahead of wholesale gmaturities during 1H10

Annual wholesale maturities vs issues (in bn€)

90%

2 5

3,6 90%2010 maturities

financed

2,5

1,6

2,2

8 5bn€0 0

8,5bn€Liquid assets

2009 2010 2011

M t iti IMaturities Issues

34

Increasing the retail base funding base Increasing the retail base funding base and gaining market share in deposits

- Retail funding evolution (in bn€) -

+1 3bn€1,2

1,0

0,9+1,3bn€

+8% in 2Q10

16,6 15 917,2 +10bps15,9 +10bps

Market share 1,5%

4Q09 1Q10 2Q10

Deposits ex repos Retail CP

35

Deposits ex repos Retail CP

A strong business A strong business d lmodel

33,3 Gaining market

LDANew Clients(thousands)

market share

+5,5%Premiums

(thousands)

36

Clear strategic focus on quality of g q yservice

Evolution of quality ISN indicator

74,22 74,15

4 5 4 3+4,5 +4,3

69,77 69,88

2Q09 3Q09 4Q09 1Q10 2Q10

37

BK Sector

Investing in client acquisition in g qobjective segments

Number of clients acquired 1H10

11.850 14.98911.850Affluents

912

14.989Individuals

5 521Total

912Corporates

5.521Sme’s

33 27233.272

38

Beating the market with a best quality g q ynew mortgage production

Residential mortgages annual growth rate evolution (%)

Internal credit rating of new residential mortgage production

50%

60% 1H10 1H09Volume 1.912,8 1.230,8 Number 9 071 0 5 869 0 6,2

6,4

30%

40%

Number 9.071,0 5.869,0

5,6

5,8

6

10%

20%

4,8

5

5,2

5,4

-10%

0%

Bankinter System

,

Jun

-09

Jul-

09

Ag

o-0

9

Sep

-09

Oct

-09

Nov

-09

Dic

-09

En

e-1

0

Feb

-10

Ma

r-1

0

Ab

r-1

0

Ma

y-1

0

Jun

-10

39

Bankinter System

…. and regaining market share in retail g gdeposits

- Retail funding evolution (in bn€) -

+1 3bn€

0,9

+1,3bn€+8% in 2Q10

17 2

1,0,

+10bps15,9

17,2 +10bpsMarket share

1,5%

1Q10 2Q10

Deposits ex repos Retail CP

40

A clear strategic focus in the affluent gand mass affluent segments

- Bankinter customer income profile-

30%

+16,5%20%

25%

30%

Affluent clients acquisition in

1H10

10%

15%

20%

0%

5%

10%

0%

< 7 7 - 14 14 - 21 21 - 28 28 - 35 35 - 42 42 - 70 > 70

Spain Bankinter

Income in Thous €

41

Spain Bankinter

Developing innovative added value p gservices for our target clients

- Brokerage number of orders (in thousand) -

Broker plusBroker plus

improve your If you wish, I can

986

866improve your vision as an equity investor

6% of total orders(in 3 monts of service)

1H09 1H10

22% Ibex3542

vs -22% Ibex35in the period

Outperforming the sector in the upper d f h ffl end of the affluent segment

Ranked 3º

SICAVS assets under management (million €)

+7% Ranked 3ºIn number of SICAVs

1.1841.266 7,7%

Market share

+5%Number of sicavs

1H09 2H10

43

AUM business is strong and the mix improvement continues

+15 6%Investment funds data

+15,6%fees

In thousand € 1H09 1H10 Dif %

f dOwn funds 5.335 4.494 -15,8%

Third party funds 381 1.046 174,4%

Total AUM 5.716 5.540 -3,1%

% monetary funds 59 46 -13%

Avg Fee (pbs) 66 70 6,1%

44

Distribution of insurance products keeps on supporting business results

+3%Pension funds (in million €)

+6 6% Saving

1 0911.163

+6,6%

+9% l f l

1.091

Non life policies

+15%Life policies

1H09 1H10Life policies

45

LDA continues outperforming the LDA continues outperforming the sector in policy acquisitions

Home insurance policies (in thousand)

55% +5%

Auto insurance policies (in thousand)

93

+55%

1.600 1.678

+5%

60

1H09 1H10 1H09 1H10

5,7%

46

5, %Market share

Transforming the business to achieve technological leadership and excellence in the transactional processesin the transactional processes

gneisgneis.Focalization and specialization

Processes centralization

Value chain differentiationValue chain differentiation

New business opportunities

47

In summary In summary ….

48

Enhanced quality of Best in class quality of results

Best in class asset quality

Solvency Business shows yadequate even in stressed

Business shows strength and clear focus

scenariosclear focus

49

A diff tA differentki d f b kkind of bank,

t bb l stubbornly diff tdifferent.

50