1

Covered Bonds Investor Presentation

December 2017

2

Index

01 EXECUTIVE SUMMARY

Bankia Results……………………………………………………………………. 3

Covered Bonds Ratings…………………………………………………….. 5

02 MORTGAGE COVER POOL

Cover Pool Metrics…………………………………………………………….. 6

Residential Sub-Pool in figures………………………………………. 8

Commercial Sub-Pool in figures…………………………………….. 9

03 WHOLESALE MATURITIES

Wholesale Maturities profile………………………………………..… 10

04 ANNEXES

Macroeconomic Indicators……………………………………………. 11

Spanish Real Estate Markets…………………………………………. 12

D isclaimer

This do cument has beenpreparedbyBankia, S .A. (“Bankia”) and is presented e xclus ive ly fo r in formation purposes. It is no ta prospectus and does no t constitu te an offero r re commendation to invest.

This do cument does not cons titu te a commitment to subs cribe, o r an offer to finance , or an o ffer to se ll, o r a so licitation o f offers to bu yse cu rities of Bankia, allo f whichare s ubject to internal approval by Bankia.

Bankia does no t gu arantee the accu racy or comple teness of the info rmation contained in th is document. The in formation contained here in has been obtained fromsources that Bankia cons ide rs re liab le , bu tBankia does no t represent o r warrant that the information is comple te or accu rate, in particu lar with respect to data pro videdby th ird parties . Th is document may contain ab ridged o r unaudited info rmation and re cip ients are invited to consu lt the pub licdo cuments and information submittedbyBankia to the financial marke t superviso ry au thorities . All o p in ions and es timates are g iven as o f the d ate stated in the document and so maybe sub ject to change.The value o f any investment may flu ctuate as a result o f changes in the marke t. The information in th is do cument is no t intended to pred ict fu tu re resu lts and nogu arantee is given in that respect.

D is tribu tion o f th is do cument in o ther ju risd ictions may be prohib ited, and there fore re cip ients o f th is do cumento r any persons who maye ventually ob tain a copy of itare responsible for being aware of and complying with said restrictions. By accepting this document you accept the foregoing restrictions and warnings.

This document does not re veal all the ris ks o r o ther material facto rs relating to inves tments in the secu rities / transactions of Bankia. Befo re entering into anytrans action, po tential investo rs mus tensu re that they fu lly unders tand the terms o f the secu rities / transactions and the ris ks inhe rent in them. This do cument is no t aprospectus fo r the secu rities described in it. Po tential investo rs should only subscribe for se curities o f Bankia on the bas is of the info rmation pub lished in the appropriateBankia prospectus, noton the basis of the information contained in this document.

3

2017 HIGHLIGHTS (1)

NON-PERFORMING LOANS 12.1€

11.5

NPL COVERAGE RATIO (2) 56.5% 55.1%

NPL RATIO 8.9% 9.8%

ATRIBUTABLE PROFIT (4) 816€

FULLY LOADED CET1 (6) 12.7% 13.5%

%

ASSET QUALITY DEC 2017 DEC 2106

PROFITABILITY & CAPITAL DEC 2017 DEC2016

COST OF RISK(3) 23 24 bps

%

%

€bn

ROE (5)

€mn

%

%

CURRENT ISSUER RATINGS

LONG TERM OUTLOOK SHORT TERM

S&P Global Ratings

FITCH RATINGS

BBB- Positive A-3

BBB- Positive F3

01. EXECUTIVE SUMMARY

Bankia Results

1 COMMERCIAL ACTIVITY (1)

€2,754mn

New mortgages

65%

Average LTV new mortgages (Bankia)

2 EFFICIENCY & PROFITABLITY (1)

51.6%

Cost toIncome ratio

+2.1%

Operating Expenses

3 LIQUIDITY (1)

93.9%

LTD ratio

€31.4bn

Liquid Assets

4 CAPITAL (1)

+559 bps

CET1 Phase in Buffer vs SREP

2018 requirements

DBRS BBB (high) Stable R-1 (low)

804

6.6% 6.7%

(1) Dec.17 data post merger between Bankia and BMN.(2) Coverage ratio including provisions for IFRS9. If provisions for IFRS9 were excluded

coverage would stand at 50.8%.(3) Recurrent cost of risk. Excludes BMN.(4) The “Profit/(loss) attributable to the group as reported” amounts to €505mn after

including integration cost with BMN for €312mn. The Bankia Group reported incomestatement, includes BMN’s contribution to the results for the month of December only.

(5) Attributable profit divided by the previous 12 months equity average excluding theexpected dividend payment.

(6) Regulatory ratios reported to ECB.

€1,250mn

Issuance of €750mn AT1

and €500mn T2in 2017

SCOPE RATINGS BBB+ Stable S-2

4

ATTRIBUTABLE PROFIT (2)

€816mnNET INTEREST INCOME

€1,968mn

PHASE IN CET1

14.15%FULLY LOADED CET1

12.66%

01. EXECUTIVE SUMMARY

Bankia Results

€

CUSTOMER FUNDS (3)

+22.8%€

BRANCHES

> 2,400CUSTOMER FUNDS

€175,960mnGROSS CUSTOMER LOANS

€128,782mn€

2017 HIGHLIGHTS (1)

UNIVERSAL BANKING MODEL, based on multi-channelmanagement, with a presence throughout Spain and highmarket shares in historical core regions.

BEST IN CLASS CORPORATE GOVERNANCE, optimalorganizational structure and highly respected managementteam.

SOLVENT, EFFICIENT AND PROFITABLE INSTITUTION, theGroup ended 2017 with an ROE of 6.6%.

CLEAN BALANCE SHEET, Non-performing loans, excludingBMN, are down 15.1% year-on-year and the stock offoreclosed assets decreases by 14.5% since December2016, without considering the properties contributed byBMN.

SUSTAINABLE CAPITAL AND LIQUIDITY GENERATION.Comfortable solvency levels with a Phase In CET1 ratio of14.15% and Fully Loaded CET1 ratio of 12.66, as ofDecember 2017.

POSITIVE COMMERCIAL DYNAMICS, reflected in thegrowth of fee and commission income (+3.2% year-on-yearand +1.9% quarter-on-quarter, without considering theBMN merger), offsetting part of the pressure that theeuribor continues to exert on net interest income.

(1) Dec.17 data post merger between Bankia and BMN.

(2) The “Profit/(loss) attributable to the group asreported” amounts to €505mn after includingintegration cost with BMN for €312mn. The BankiaGroup reported income statement, includes BMN’scontribution to the results for the month of Decemberonly.

(3) Includes the off-balance sheet products marketedby BMN, which as from 2018 will be managed byBankia.

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01. EXECUTIVE SUMMARY

Covered Bonds Ratings

2013 2014 2015 2016 2017

BBB

A-

A

S&P Global Ratings DBRS

2014 2015 2016 2017

A-

A+

A+

AA

A+ AA +

A+Positive

AAA

DBRS

AStable

AAAStable

Fitch Ratings

A-

BBB+

A

RECENT RATING ACTIONS

FITCH. O n 18 October 2017, following a review o f Bankia’s co vered bonds programme,Fitch affirmed Bankia’s covered bonds rating at “A”, outlook Stable. Subsequently,on 23 January 2018, fo llo wing the merger through abso rption o f BMN, Fitch affirmedBankia’s covered bonds at “A”, outlook Stable.

S&P. On 7 April 2017, S&P revised the outlook on Bankia’s covered bonds rating toPositive and affirmed the “A+” rating. The Positive outloo k on our co vered bondsrating, reflects the Positive outloo k from S &P’s long-term so vereign rating on Spain(BBB+/Positive/A-2).

DBRS. On 22 September 2017 DBRS completed its annual review of Bankia’scovered bonds raising the rating to “AAA”.

Scope Ratings.On 8 July 2016, S cope Ratings assigned a rating o f “AAA” with a S tableo utlook to Bankia’s covered bonds.

BANKIA’S COVERED BONDS RATINGS HAVE IMPROVED ON THE

BACK OF A STRENGTHENED INTRINSIC ASSESMENT OF BANKIA.

AT THE SAME TIME THE MATURITY PROFILE OF THE COVERED BONDS

OUTSTANDING AND THE OC LEVEL ALSO IMPROVES. RECENT RATING

ACTIONS HAVE IMPROVED THE LCR ELIGIBILITY OF OUR COVERED

BONDS TO HQLA LEVEL 1.

A+ AAA

2014 2015 2016 2017

A

6

86,830

74,884

57,545

46,036

30,497

15,540

Total Collateral Elegible Legal Issuance Issued

02. MORTGAGE COVER POOL

Cover Pool Metrics (1)

AMPLE ISSUANCE CAPACITY

HIGHOC

LEVEL

STRONG ELEGIBLE COVER POOL

COLLATERAL AND CB’s OUTSTANDING

89%Res idential

11%Commercial

77% o f the co verpo ol elig ible € 15,540

millio n IssuanceCapacity

X 80%

2014 2015 2016 2017

X 2,46 o ver-co llateralized

Co llateral CB’s Outstanding

ACTIVE OC MANAGEMENT

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

90.000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

(1) Dec.17 data post merger between Bankia and BMN.

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02. MORTGAGE COVER POOL

Cover Pool Metrics (1)

Q4 2017 Q4 2016

Collateral Eligible Collateral Eligible

Outstanding (million €) 74,884 57,545 61,073 46,648

Number of loans 883,725 756,245 678,318 577,796

Number of debtors 953,459 827,637 609,860 531,633

Average S easoning (months) 99 107 92 102

Life (months) 339 338 337 336

Time to maturity (months) 240 230 245 234

Average LTV 59% 48% 58% 48%

Q4 2017 Q4 2016

Collateral Eligible Collateral Eligible

Residential 63,982 52,504 52,778 43,019

Co mmercial 9,503 4,490 7,104 3,050

Developers 1,152 539 1,032 579

Land 247 13 159 0

COLLATERAL LTV DISTRIBUTION

NPL RATIO

84% OF THE COVER POOL

HAS A LTV RATIO BELOW

80%

POSITIVE NPL’S PERFORMANCE WITH NPL RATIO

STANDING AT 5.31%(2) AS OF 4Q17

5,61% 5,48%5,41% 5,35% 5,31%

Q4 Q1 Q2 Q3 Q4

2016 2017

0

5.000

10.000

15.000

20.000

25.000

30.000

0-40% 40%-60% 60%-80% 80%-100% >100%

(1) Dec.17 data post merger between Bankia and BMN.(2) Excluding BMN. When including BMN NPL ratio stands at 6,73%

8

2.836 2.764 418 1.485

12.920

262 983

35

186

1.000

1.425

2018 2019 2020 2021 >2021

03. WHOLESALE MATURITIES

Wholesale Maturities Amortizing Profile

3,097 4,747 418 1,520 14,531

Amount Outstanding (€mn) 24,313

Covered Bonds (1) 20,423

Senior Debt 1,465

Subordinated debt 2,425

(*) No t including re tained covered bonds

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04. ANNEXES

Macroeconomic Indicators

SPAIN SOVEREIGN DEBT RATING

LONG TERM OUTLOOK SHORT TERM

STANDARD & POOR’S

FITCH RATINGS

BBB+ Positive A-2

A- Stable F1

MOODY’S

DBRS

Baa2 Stable P-2

A (low) Stable R-1 (low)

“GROWTH

CONSOLIDATION

”

“FAVOURABLE

EMPLOYMENT

TREND”

“HOUSEHOLD

SPENDING, MAIN

DRIVER OF THE

ECONOMY”

€

Sales (deflated and seasonally adjusted)

RETAIL TRADE INDEX (Annual Rate %)

UNEMPLOYMENT RATE IN SPAIN

QUARTERLY SERIES GDP. PREVIOUS QUARTER RATE (%)

2,3

0,2

0,6

1,4

2,1

2,7

2,2

1,3 1,4

1,7

0,2

1,9

1,2

DEC16 JAN17 FEB17 MAR17 APR17 MAY17 JUN17 JUL17 AUG17 SEP17 OCT17 NOV17 DIC17

0,8

0,9

0,8

0,70,7

0,8

0,7

0,90,9

3T 20172T 20171T 20174T 20163T 20162T 20161T 20164T 20153T 2015

0%

5%

10%

15%

20%

25%

30%

4T 20173T 20172T 20171T 20174T 20163T 20162T 20161T 20164T 20153T 20152T 20151T 20154T 2014

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04. ANNEX

Spanish Real Estate Market

MORTGAGES CONSTITUTED OVER DWELLINGS

EVOLUTION OF THE QUARTERLY RATE OF THE GENERAL HPI

“Mortgages

over dwellings

increase 22% vs

Q3-2016”

“New housing

prices increased

by 1,6%”

EVOLUTION OF THE QUARTERLY RATE OF THE HPI BY TYPE OF HOUSING

1,91,92,1

0,71

1,51,3

-0,3

1,6

2,6

3,7

-1,4

-0,5

3,7

2,6

1,3

Q3-2017Q2-2017Q1-2017Q4-2016Q3-2016Q2-2016Q1-2016Q4-2015

0

2

4

6

8

10

12

14

2Q 2017. ANNUAL VARIATION RATE (%) OF THE HPI BY AUTON. COMMUNITY

New housing Second-hand housing

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

90.000

Q1-2015 Q2-2015 Q3-2015 Q4-2015 Q1-2016 Q2-2016 Q3-2016 Q4-2016 Q1-2017 Q2-2017 Q3-2017

1,82

2,3

0,4

0,8

1,8

1,5

-0,1

0,7

Q3-2017Q2-2017Q1-2017Q4-2016Q3-2016Q2-2016Q1-2016Q4-2015Q3-2015

11