ANNUAL REPORT - MicroBank · PDF fileAnnual Report 2011 7 ... The sterling work of the more than 400 entities who collaborate with MicroBank, ... /2008 /2009 /2010 /2011

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ANNUAL REPORT

Designed and printed by:www.cege.es

D.L.: B-8510-2012

Nuevo Micro Bank, S.A.U.Juan Gris, 10-18, planta 10, Torre Centro – Complejo Torres Cerdà, 08014 Barcelona

Table of conTenTs

Letters of introduction

Chairman of CaixaBank 7

Executive Deputy Chairman and CEO of CaixaBank 9

Chairman of MicroBank 11

MicroBank, strategic keys 13

Corporate Governance 18

Business model 19

Products and services 24

Customer profile and destination of loans 27

Financial data for 2011 30

MicroBank, a benchmark in European microfinance 34

Collaboration with European institutions 38

Social impact of microcredits 40

Corporate Social Responsibility 44

MicroBank’s challenges for the future 47

Annual Report 2011 7

Letter from the Chairman of CaixaBank, Mr. Isidro Fainé

In 2011, the ”la Caixa” Group was successfully reorganized to adapt to future sector needs and consequently, to improve its competitive edge while at the same time maintaining the foundational values which have guided its activities.

MicroBank, the social bank of ”la Caixa” which embodies these values, has emerged from this process stronger and more robust, helping it renew the Group’s commitment to this project through CaixaBank, currently being its sole shareholder.

The consolidation of a sustainable banking model, able to generate resources to finance its own growth, is key in the current climate where the challenging economic situation has diminished the possibility of launching schemes which rely on outside contributions to survive. We are also extremely pleased that those European institutions which have backed MicroBank from the beginning have not only continued to support this project but have increased their contributions to help us carry out our activity.

With a high level of capitalization and liquidity which guarantees our ability to grow as planned, and an extensive sales network covering the whole of Spain, in 2012 MicroBank shall continue to build on its microcredit portfolio, particularly in the current economic climate when access to credit is becoming increasingly difficult, especially among the most vulnerable social groups, thereby helping create jobs by financing entrepreneurial projects.

The ”la Caixa” Group is once again demonstrating its ability to anticipate social and financial needs. MicroBank is playing a key role in providing a quality solution to one of the constraints with greater impact on the socio-economic development and well-being of society: the access to credit.




Executive Deputy Chairman and CEO of CaixaBank, Mr. Juan María Nin

In 2011, the economic climate shaped various activities in Spain, particularly, and most significantly, access to credit. Stricter capital and solvency requirements imposed by regulators, higher financing costs and increased default rates, have all affected access to financing worldwide.

Entrepreneurs, self-employed workers, microenterprises and families all faced greater difficulty in accessing financing, particularly for small amounts, and without being able to offer additional collateral.

Even though demand has also declined in the current climate it is essential to continue offering permanent and high quality loans so that small business units can carry on their important role as job creators.

It is also imperative that low-income families who have had difficulties to save sufficiently are able to request small loans should the need arise since their well-being and development could rely on the granted microcredits.

MicroBank, a social bank which focuses exclusively on offering small loans without the need for collateral other than simple trust in the applicants and their projects, is performing a modest yet important role in offering equitable access to credit for those who are in most need and, at the same time, face the most difficulties in being granted with it.

In the current climate, MicroBank’s mission is even more important as it focuses on those social groups who are most affected by the crisis and our contribution is key in helping them to successfully overcome the current economic situation.



Letter from the Chairman of MicroBank, Mr. José Francisco de Conrado

In 2011, MicroBank granted a total of 34,300 new loans, worth €218 million, improving the previous year figures. The number of microcredits granted to entrepreneurs and microenterprises rose significantly to nearly 9,000, lending over €100 million. This is 70% higher than in 2010. Financial support for these small business units is key to economic recovery and job creation.

Since it was set up four years ago, MicroBank has granted over 128,000 microcredits, lending more than €800 million. Over this time we have seen how the management policy for our activity, which is subject to the strict provisions of a financial entity, has not restricted our growth but has in fact boosted it by focusing on highly visible projects offering potential. The sterling work of the more than 400 entities who collaborate with MicroBank, has also contributed, thanks to their support, in drawing up and executing clients’ projects.

Thanks to the facts expounded above, growth in our lending activity has been accompanied by satisfactory compliance in the repayment of loans by our customers. This is essential for an entity that offers all its operations relying on confidence in people and their projects.

In 2011, ESADE’s Institute for Social Innovation published its second “Report on the impact of microcredits”. This document underlines the significant impact of the microcredits granted by MicroBank in driving the economy and creating employment as well as the ability to help social integration. According to estimates, since beginning operations we have helped create or consolidate over 42,000 jobs.

The high acceptance rate of our customers and their commitment to repay the loans granted are perhaps two of the best indicators that the contribution to social value and financial sustainability are not only compatible but also indivisible.

We trust that in 2012 even more entrepreneurs, microenterprises, individuals and families will turn to us to help their projects become a reality. We shall therefore carry on working day by day to improve the quality and scope of

our products and services.

Informe Anual Corporativo 2011 13Annual Report 2011 13

Microbank, strategic keys

MicroBank, the social bank of ”la Caixa”, was established in 2007 to channel microcredit activity that ”la Caixa” had until then carried out through its Welfare Projects, in order to develop this economic and social activity within the parameters of rigor and sustainability inherent to a bank.

This brought to fruition the strategic willingness to respond to various sectors of the population whose financial needs are not sufficiently met, with a new social banking model that facilitates access to quality financial services.

Using the business model it has developed, MicroBank has managed to combine the contribution of social value with the creation of those resources required to ensure that the project continues to grow at the pace required by existing demand.

The impact of the bank’s activity is particularly relevant in the current international economic crisis where the availability of permanent and quality credit is paramount to help overcome this situation.

14 Annual Report 2011

MicroBank, strategic keys

Mission and vision

MicroBank offers financial products and services tailored to the needs of entrepreneurs, as well as to those already running micro companies and to families in order to contribute to:

• The promotion of productive activity and job creation through financial support to self-employed professionals and microenterprises.

• Self-employment, through the creation of small businesses facilitated by granting microcredits to new entrepreneurs.

• Individual and family development, meeting their needs and helping them overcome temporary difficulties.

• Financial inclusion, encouraging new customers to engage in banking activity through the entity’s extensive sales network.

All these factors have an important impact on social cohesion and the well-being of individuals and families, particularly those belonging to the most vulnerable social groups.

activity

Since it was set up, MicroBank has granted 128,203 loans, lending €806.8 million to finance various projects. Despite the present economic climate, the business has generally performed favorably, as illustrated in the chart below:

0

50

100

150

200

250

/2011/2010/2009/2008

NUMBER OF MICROCREDITS GRANTED

In € thousands

2008: 138,1 // 2009: 176,7 // 2010: 212 // 2011: 217,9

2008 2009 2010 2011

138.1

176.7212 217.9

ANTONIA PÉREZ MUÑOZ

Pizza delivery service

“I needed the microcredit to buy the initial equipment for my business”

Antonia Pérez explored the main pizzerias in the province of Barcelona to learn the business and the secret of creating this Italian dish par excellence. At her business in Argentona (Barcelona), Pizzas Burriac, she makes homemade pizzas which are then delivered across the municipality and to nearby residential areas.

After two years, sales have risen 20% and Antonia is already thinking about expanding the range to include new ingredients. The microcredit helped her buy the equipment needed to set up the business and she says that “the fact that the interest rate is manageable, you have a grace period and up to five years to repay the loan have certainly helped me get my business off the ground.” Antonia was granted a microcredit thanks to advice from the International Foundation of Women Entrepreneurs (FIDEM).

Name of entrepreneur: Antonia Pérez Muñoz

Name of business: Pizzas Burriac

Microcredit amount: €10,000

Total investment: €15,000

Future plans: Expand the pizzeria so that customers can eat onsite and thereby double the sales.



By type, the total granted microcredits for 2011 is as follows:

0

50

100

150

200

250

TOTALPersonal y familiarEmprendedores

Emprendedores 100,9Personal y familiar 117TOTAL 217,9

Entrepreneurs Individuals and families TOTAL

100.9117.0

217.9

In € thousands

Dades wordTextos picats

Personal y familiar

Emprendedores

Individuals and familiesEntrepreneurs

46.3%

53.7%

Emprendedores Personal y familiar TOTAL Porcentaje 46,3% 53,7% 100%

Distribution

In addition to microcredits, which are its main business, since its creation MicroBank has developed a range of savings products and services that allow it to offer its customers a comprehensive package. In 2011 the MicroBank Ethical Fund was launched to encourage socially-responsible investing.

Values

social commitment: promoting productive activity, job creation and consolidation, and personal and family development.

financial inclusion: offering specially-tailored products and services and thereby promoting the use of banking services by those sectors of the population that have problems accessing the traditional financial system.

accessibility: providing our customers with over 5,000 customer service points across the ”la Caixa” sales network and providing complementary services through agreements with 439 collaborating entities throughout Spain.

security: a rigorous financial and risk management policy has earned the trust and support of leading European financial institutions.

sustainability: a pace of economic development able to meet the needs required for the bank’s future growth.



future prospects

Among other factors, MicroBank’s financial performance stands out because of the growth in the business and the quality of its loan portfolio, which has established itself as one of the essential elements in ensuring the sustainability of the project.

Its high level of capitalization and liquidity; extensive sales network; the support of its sole shareholder, CaixaBank; and the backing of European financial institutions are some of the institution’s competitive strengths.

All of these elements form a unique platform for the continued expansion of a business that must be complemented by the introduction of new products and services, specially-tailored to MicroBank’s customers. MARTÍN MASVIDAL ALIBERCH

Online English course for architects

“The microcredit in itself is valuable because it helps entrepreneurs succeed with their project”

Ark English was born as a professional alternative to the crisis in the construction sector and also due to the lack of English resources in this sector. Martín and 12 others came up with the Ark English teaching method which is based on the recognition of images associated with the common words used in architecture.

After obtaining a viability certificate from Barcelona Activa and thanks to a MicroBank microcredit, Martín was able to set up his business which has grown quickly thanks to agreements with various professional architecture schools throughout Spain who in turn offer this learning system to their associates.

Name of entrepreneur: Martín Masvidal Aliberch

Name of business: Ark English



Future plans: Expand his training program abroad thanks to new agreements with professional schools in Italy, Brazil, Portugal and France, among others.


corporate Governance

MicroBank is governed, managed and represented, within the limits of their respective powers, by its Board of Directors and by CaixaBank, the bank’s sole shareholder. Both bodies are responsible for making any strategic decisions that may affect MicroBank and carefully monitor the bank’s activities, examining its balance sheet, financial situation and earnings, as well as the risks inherent to its business.

The Board of Directors is vested with broad powers, limited only by those conditions laid down by law or by the Company’s bylaws.

board of Directors(at December 31, 2011)

chairman

José Francisco de Conrado y Villalonga

Vice-President

José Juan Pintó Ruiz

board Members

Maria Dolors Llobet MariaJosep Ramon Montserrat MiróMiguel Noguer PlanasManuel Romera Gómez

secretary (director)

Sebastián Sastre Papiol

Management Team

General Manager

Alberto López Martínez

Department Directors

Núria Danés JofreRamón Gatell CollellHugo Martínez PérezSalvador Pané Solé

Business model


business model

MICROCREDITS FOR ENTREPRENEURS

Asset products: microcredits

Sales network: 5,196 ”la Caixa” branch offices

INDIVIDUAL AND FAMILY

MICROCREDITS

LIABILITY PRODUCTS

OTHER PRODUCTS AND SERVICES

Financial microcredit

• Setting up a business

• Expanding and consolidating a business

Social microcredit

• Self-employment projects

Individual and family

• Housing

• Disabled people

• Temporary difficulties

• Family regrouping

• Transport needs

• MicroBank Ethical Fund

• Debit card

• Bank guarantees

• Servicuenta MicroBank

• Servicuenta MicroGiros

• Savings Account

• Basic Savings Account

• Current account

• Basic Current Account

439 Collaborating entities

• 89 non-profit organizations

• 6 autonomous communities and provincial bodies

• 276 town councils

• 19 public bodies

• 28 universities and business schools

• 21 others (trade associations and chambers of commerce)

Liability products and services

MicroBank offers its products and services through the branch offices of ”la Caixa,” which has the largest distribution network in Spain, with 5,196 offices.

In addition, MicroBank has signed collaboration agreements with 439 entities, with the aim of promoting self-employment and facilitating access to microcredit financing, especially among those groups that are currently financially excluded or are at risk of becoming so. The benefits that MicroBank’s collaborating entities bring to the table include:

• Providing first-hand knowledge of the customers applying for microcredits, helping ensure a better evaluation of the transaction.

• Giving advice on putting together the business project and carrying out a prior assessment of its viability and rationale.

• Broadening the distribution network for MicroBank’s products and services throughout Spain, particularly among groups that have the greatest difficulty in qualifying for financing.

The main contribution of the collaborating entities is to act as a liaison between potential clients and MicroBank, offering in many cases professional support in preparing the business project and monitoring its progress.

Business model


COLLABORATINg ENTITy CUSTOMER TyPE

Government bodies WomenYoung people

Autonomous community governments Self-employed business peopleEntrepreneurs

Town councils and social services offering support to the unemployed and entrepreneurs

Unemployed people Long-term unemployedPeople receiving help from municipal social servicesYoung people New entrepreneurs

Universities University student entrepreneurs

University foundations Students and alumni with small business projects

University, professional and business schools Recent university graduates without professional experience

Professional and entrepreneurial associations Self-employed business people and professionalsWomen entrepreneursYoung entrepreneurs

Non-profit organizations The unemployed New residentsPeople at risk of social exclusionWomen

Barcelona Activa

Barcelona Activa is the local development agency for the Barcelona City Council and promotes employment in business. It has become a local and international benchmark through its work supporting entrepreneurship, innovation and job creation. Microcredits play a crucial role in these areas as financial tools to help inclusive entrepreneurship become a reality for many people who have been able to start their own business. It is for this reason that in 2005 Barcelona Activa and MicroBank signed a collaboration agreement.

The table below shows the different types of collaborating entities, by location, as well as the groups to which they provide their services:

In 2011, Barcelona Activa received 79 applications, of which 37 valid business projects were selected following an appraisal by the technical team. MicroBank has granted 34 microcredits, reaching a 92% acceptance rate.

The 34 projects have resulted in the creation of 41 jobs, 53% of which went to Spanish applicants and 47% to citizens of other countries, both European Union member states and others. 59% of granted projects have been led by women.

Business model


Secretary of State for Social Services and Equality

Since business operations began, MicroBank has had a partnership agreement with the Secretary of State for Social Services and Equality, aimed at women entrepreneurs who have difficulty obtaining finance due to their economic and social status.

The objective of the agreement is to provide financing, on favorable terms and without the need for guarantees, to viable women’s business projects, as well as offering any necessary advice for the first two years after the microcredit has been granted. Eight women’s organizations participate in the program, offering advice and acting as administrative centers.

In 2011, 114 microcredits were granted, amounting to €2.05 million.

Since the program began, 1,088 credits have been granted, worth a total of €14.45 million.

Instituto de la Juventud (INJUVE), which is part of the Ministry of Health, Social Services and Equality, and MicroBank signed a collaboration agreement in 2009 to finance business projects for the under 35s in order to boost productive activity and create jobs. Since this collaboration began, MicroBank has financed 94 business projects introduced by INJUVE for a total amount of €1.4 million. Of these, 51 loans were granted in 2011 totaling nearly €1 million.

The Secretary of State for Social Services and Equality and Instituto de la Juventud (INJUVE) renewed their collaboration agreements with MicroBank in 2011.

Signing the agreement between MicroBank and the former Secretary of State for Social Services and Equality

Business model


ONCE Foundation and universities

In 2011, MicroBank continued to extend its network of collaborating entities in Spain and now has over 435 organizations. Of particular note is the agreement with the ONCE Foundation to help people with disabilities qualify for financing thereby helping them set up new companies and projects as well as improving accessibility in the home by financing necessary reforms and providing assistance. MicroBank has granted this agreement a microcredit line of up to €10 million.

Other noteworthy agreements

In 2011, MicroBank signed 75 new collaboration agreements with various social, economic and development entities throughout Spain. Here we would note the agreement signed in April with Andalucía Emprende, a regional government foundation which promotes the development of an entrepreneurial culture and economic activity to help create competitive companies and quality employment in Andalusia. Since the agreement was signed, MicroBank has financed 34 entrepreneurial projects in the region totaling over €450,000.

Since 2009, an agreement has been in place between MicroBank and the Andalusia Chamber of Commerce Committee to promote productive activity and self-employment. The Andalusia Chamber of Commerce Committee groups together and coordinates the region’s chambers of commerce to help boost economic activity in the region. Since this agreement was signed, MicroBank has financed 40 projects submitted by the entity, lending over €500,000.

MicroBank has also signed collaboration agreements with prestigious universities such as the Universidad Autónoma de Barcelona as well as their associated research centers such as the Parc de Recerca de la Universidad Autónoma de Barcelona (PRUAB). Under the terms of these agreements, the bank offers new financing lines for students and graduates who have professional or corporate projects, thereby helping their entrepreneurial aptitude.

Signing of the agreement between MicroBank and the Cantabria Chamber of Commerce

Signing of the agreement between MicroBank and the ONCE Foundation in Madrid

Business model


Monte de Piedad

Monte de Piedad de la ”la Caixa” is one of the oldest pledge loan institutions still operating in Spain.

Monte de Piedad grants secured loans on jewelry to people that due to their work, family or financial situation may find it difficult to access credit or who have exhausted the traditional avenues of funding.

To take out this type of loan, which currently has a minimum value of €300, the customer must visit Monte de Piedad de ”la Caixa”’s office in Barcelona. Here the maximum loan amount is calculated, based on a valuation of the jewellery. When the loan expires, and the customer settles the amount owed, the items are returned.

MicroBank took over the management of the Monte de Piedad de ”la Caixa” in 2010 in order to increase the impact of its activities and boost growth. At present, Monte de Piedad de ”la Caixa” forms part of the Caixa d’Estalvis i Pensions de Barcelona Group although MicroBank oversees its management. This is consistent with MicroBank’s promotion of social support and integration by providing microcredits to people with difficulties in obtaining loans through the traditional credit system.

MONTE DE PIEDAD DE ”LA CAIxA”

2011 2010 change

Loans granted 9,825 8,342 17.7%

Customer portfolio 11,794 11,873 (0.6%)

Outstanding balance €27,117,781 €25,374,203 6.8%

Jewelry valued 150,800 items 179,036 items (15.7%)

Total valuation amount €26,508,559 million €24,618,984 million 7.6%

Staff 12 12


Products and services

All products and services offered by MicroBank aim to promote access to credit, financial inclusion, productive activity, job creation and personal and family development.

MicroBank’s loans comprise two types of microcredit: Microcredits for entrepreneurs and microcredits for families. The main conditions and characteristics of each of these microcredit types are as follows:

Microcredits for entrepreneurs

• financial microcredit: this is a personal loan aimed at self-employed professionals or microenterprises in need of finance to start up, expand or consolidate their business or meet their cash-flow needs. The maximum amount is €25,000. There is no need to provide any collateral security and the loan must be paid back within 5 years, with an optional 6-months grace period. A basic requirement for the granting of this type of loan is that a business plan is presented so that a viability study can be carried out. Self-employed professionals or entrepreneurs with annual incomes of less than €60,000 may apply, as well as microenterprises with fewer than 10 employees and a turnover of less than €500,000.

• social microcredit: this is a personal loan with the same characteristics as financial microcredits. Granted to finance self-employment projects led by people who find it difficult to qualify for loans through the traditional credit system and who have received advice from a collaborating entity of MicroBank prior to the granting of the microcredit. These operations also require the submission of a business plan. In addition, the business plan must be accompanied by a viability report from the collaborating entity that has advised the customer.



Monte de Piedad de ”la Caixa” also offers pledge microcredits.

• Pledge microcredits: A minimum loan of €300 in which the applicant posts jewelry as collateral. This type of microcredit is designed for those people who, due to their job, financial or personal circumstances, find it difficult to access traditional credit sources.

Microcredits for families

• family microcredit: this is a personal loan for people with annual incomes below €18,000 to finance projects related to their personal and family development, or to meet any needs derived from exceptional or unforeseen personal circumstances. Some of the most common cases include: home improvements and other housing related expenses, health, education, needs arising from dependency or disability situations, family reunification, or the acquisition of a vehicle. The maximum loan amount is €25,000 and no collateral security is required. The loan must be paid back within 6 years, with an optional 12-months grace period.

VIRgINIA CUESTA VAN JAARSVELD

Craft workshop/store

“Given my personal situation, the microcredit was perfectly adapted to my needs”

Mooi is a creative space in Utebo (Zaragoza). It has a workshop where Virginia offers ceramics, dressmaking and jewelry classes, among others and there is also a small store selling handmade costume jewelry, frames and custom-made clothing.

Given her personal situation, Virginia decided to apply for a microcredit to adapt the site and to buy the necessary equipment. The loan “was essential for me” she stresses. Thanks to Virginia’s previous experience working at various craft fairs and medieval markets she was able to overcome the initial difficulties.

Name of entrepreneur: Virginia Cuesta Van Jaarsveld

Name of business: Espacio Mooi



Future plans: To expand the site to be able to offer new courses and to hire another person to look after the store so she can focus on workshops for children and grownups.



liability products and services

MicroBank also offers a range of liability products which, while offering all of the standard services of a financial institution, are adapted to the bank’s customer profile:

liability products

• Microbank basic savings account and Microbank basic current account: these instant access deposit accounts allow the customer to make deposits or withdrawals at any time. They are exclusively aimed at people with earnings below the minimum wage and whose salary, pension or subsidy is directly deposited into this account, as well as recipients of a Social microcredit. Both products are aimed at promoting financial inclusion and no maintenance fees are charged.

• Microbank savings and current account: these instant access deposit accounts also allow the customer to make deposits or withdrawals at any time. The MicroBank Savings Account is aimed at customers who do not meet the requirements for the Basic Savings Account. The Current Account is designed for recipients of MicroBank’s financial microcredits or non-profit organizations.

• Microbank “servicuenta” and “servicuenta” MicroGiros: this is a current or savings account offering services for new residents’ needs. In addition, MicroGiros allows customers to send money remittances to their country of origin.

All MicroBank customers can operate through the extensive ATM network of ”la Caixa”.

services

Lastly, to complete its range of services, MicroBank offers its customers the following:

• Microbank Visa electron: a debit card designed for MicroBank customers, with access to cash through the ”la Caixa” ATM network and the possibility to debit payments from their savings or current account. There are no fees or commissions.

• Guarantees and pre-guarantees: designed for individuals, particularly young and elderly people, who must provide a guarantee from a third party in order to rent a

property. Also aimed at self-employed entrepreneurs and professionals who wish to expand their business.

• línea abierta: A 24/7 online banking service that allows MicroBank customers to carry out their banking transactions at any time, any day of the year. This platform features 19 languages, multi-channel access (Internet, mobile phones, TV) and the CaixaProtect© antifraud system.

ethical fund

MicroBank’s Ethical Fund

MicroBank boasts an ethical fund designed for all those people and entities who may be interested in socially-responsible investing. MicroBank Ethical Fund (MicroBank Fondo Ético, FI) is an investment fund investing in equities and corporate and government fixed-income bonds worldwide. It combines traditional investment criteria – profitability, risk and liquidity – with ethical and socially responsible criteria. In addition, the fund has a charitable component.

The Fund invests in companies which are proven to have a high level of compliance with ethical criteria. These companies are tested against certain specific criteria, which can be negative (military, nuclear, tobacco) and positive (corporate governance, human rights, environment and relationship with stakeholders).

The fund is advised by an external ethics committee comprising experts from the academic and business world and representatives of non-governmental organizations. The committee advises the fund manager on the most important criteria to be applied and ensures that the portfolio meets the ethical criteria set forth. The MicroBank Ethical Fund gives 25% of its management commission to selected non-profit organizations. The ”la Caixa” Foundation also contributes an equal amount to an international development project.

The minimum investment in the fund is €600, in addition to contributing to add social value due to its ethical and solidarity-oriented nature, the Fund’s investments in socially responsible enterprises offer advantages over traditional investment. These advantages are seen in the medium and long term and are related to the valuation of intangible aspects that cannot be measured solely according to financial criteria. At December 31, 2011, the MicroBank Ethical Fund had €4.3 million worth of assets under management and nearly 1,000 unit-holders.


customer profile and destination of loans

MicroBank offers its products and services to the following customers:

• entrepreneurs, self-employed professionals and microenterprises that require financing in order to start up, expand or consolidate their business.

• new entrepreneurs who, due to financial, social or cultural circumstances, find themselves at risk of

financial exclusion – such as young people, women, the unemployed or new residents – and who propose a viable business plan that may increase production and promote job creation.

• families and individuals with annual incomes of less than €18,000 who must meet family obligations or overcome temporary difficulties.

PAZ COLQUE MIRANDA

100% natural juice and food store

“Without the help of the microcredit, it would have taken me years to set up my own business”

Paz had studied Business Studies in her native Chile before coming to Spain and sorely missed the juices and milk shakes there. After looking for work for some months, she decided to open Refreskt in the center of Barcelona where she offers healthy natural products made with juices, fruit and ice cream.

She highlights the fact that MicroBank put its trust in her when granting the loan “regardless of the fact that I’m foreign”. She states that the business has done better than she had hoped and that she is working to build up customer loyalty.

Name of entrepreneur: Paz Colque Miranda

Name of business: Refreskt



Planes de futuro: To redesign the website, move into the corporate catering market and open a second store.


Customer profile and destination of loans

The breakdown of the types of microcredits granted in 2011, including the number of operations granted, is as follows:

In 2011, more than 8,939 business projects were financed and more than 25,368 personal or family credit needs have been met.

The following charts show our customer distribution according to gender:

Dades picadesTextos picats

ManWoman

44% 56%

Hombres

Mujeres

Hombres

Mujeres

44% of microcredits are granted to women.

MicroBank’s customer broken down by age is as follows:

0

5

10

15

20

25

30

35

40

Más de 65:56-65:46-55:36-45:18-35:>6556-6546-5536-4518-35

39.2%

21.5%16.5%

11.6% 11.2%

Dades picades

Xifres en gràfic picades

18-35: 39,2%36-45: 21,5%46-55: 16,5%56-65: 11,6%Más de 65: 11,2%

39.2% of microcredits are granted to people under 35 years old.

EVA FRANCOLÍ, PAULA LLAVINA

AND NÚRIA LLAVINA

Online restaurant services

“A microcredit is the first investment needed to be able to carry out your project”

Núria and Paula Llavina and Eva Francolí all worked together and every Friday one of them would explore the local restaurants to choose their favorite menu. Based on this they decided to create menudiari.com, a website which lists all the restaurants in Catalonia, offering them a private platform so they can manage their own data and information: ranging from basic information about the restaurant to posting their daily and general menu online for users to browse.

Conscious of the difficulties of being a young company still, they insist that the microcredit helped them set up in business.

Names of entrepreneurs: Eva Francolí, Paula Llavina and Núria Llavina

Name of business: Menudiari.com



Future plans: : Increase the number of restaurants available on their website and become leaders in this field thanks to the quality of the service offered to restaurants and users.


Customer profile and destination of loans

Our customer portfolio can also be broken down by country of origin:

1.5% 0.9%3.8%

Dades picadesTextos picats

8.1%

85.7%

Asia:

África:

Resto Europa:

América:

España:

America Rest of Europe

Asia Africa

Spain

Espanya Ecuador Romania Colombia Peru Marruecos Argentina Bolivia China Otros 76,9 2,3 3,3 1,8 1,1 2,1 1 0,7 0,9 9,8

9,8%

2,3%3,3%

1,8%1,1%

2,1%

0,9%0,7%

1%

76,9%

Ecuador Rumania Colombia PerúEspaña

Argentina Bolivia China OtrosMarruecos

Espanya Sudamérica Norteamerica Resto Europa Asia Africa76,86 10,24 0,05 7,4 2,03 3,42

Espanya Amércica Resto Europa Asia Africa76,86 10,29 7,4 2,03 3,42

España: 85,7América: 8,1Resto Europa: 3,8África: 1,5Asia: 0,9

14.3% of MicroBank’s customers are foreign nationals.

Destination of microcredits

The analysis of Family microcredits granted during 2011 allows us to check whether the destinations given to these loans effectively respond to those that this product was designed for:


Transport

Health

Family needs

Education

New residents

Other

Housing

Disabled

21.5%

0.9%

0.5%

6.9%4.3%1.5%

40.2%

24.2%

Otros:

Educación:

Salud:

Discapacitados:

Nuevos residentes:

Necesidades familiares:

Transporte:

Vivienda:

Vivienda: 40,2Transporte: 24,2Necesidades familiares: 21,5Salud: 6,9Educación: 4,3Otros: 1,5Nuevos residentes: 0,9Discapacitados: 0,5

Microcredits granted to entrepreneurs were distributed as follows:


Business expansion Business start-ups

52.2%47.8%

Inicio de actividad:

Ampliación de negocio:

Ampliación de negocio 61Inicio de actividad 39

Inicio de actividad: 47,8Ampliación de negocio: 52,2

Their breakdown, according to the economic sector in which the financed business operates, is as follows:

Services Catering Retail

Health and education Design and manufacturing

38.8%

16.1%

4.2%4.4%

36.5%


Educación y sanitario:

Diseño y fabricación:

Hostelería:

Servicios:

Comercio:

Comercio 41Servicios 35Hostelería 17Diseño y fabricación 3Educación y Sanitario 4


financial data for 2011

Key indicators

businesses anD resulTs

€ thousands

2011 2010 2009

balance sheet

Total assets 374,284 322,242 244,893

Own funds and reserves 122,709 90,736 79,959

Loans and credits to customers (gross) 379,612 325,136 237,688

Customer deposits 26,932 22,828 11,179

Funds raised from credit institutions 202,403 179,623 128,018

income statement

Net interest income 31,428 25,147 17,633

Gross income 40,234 34,670 27,260

Operating income 20,004 15,486 9,369

Pre-tax profits 20,004 15,486 9,369

Net profit 13,943 10,777 6,613


Financial data for 2011

resources

2011 2010 2009

Employees 13 13 13

Employees of ”la Caixa” Group

26,993 28,651 27,505

“la Caixa” Group branch offices

5,196 5,409 5,325

ManaGeMenT raTios

2011 2010 2009

ROE 13.32% 12.57% 8.50%

ROA 3.82% 3.85% 3.19%

BIS Ratio (Core Capital)

32.84% 28.46% 32.93%

NPL ratio 1.78% 1.53% 1.51%

% default/capital 2.97% 3.25% 3.71%

Coverage for doubtful assets

228.32% 252.95% 184.16%

loans granted and outstanding loans

Since beginning business operations, MicroBank has granted 128,203 microcredits (including 1,006 microcredits through ”la Caixa’s” microcredit program prior to MicroBank’s creation) for a total amount of €806.8 million.

€ million

Portfolio at 12/31/2011 Total granted

no. outstanding

no. amountno.

outstanding no. amount

Microcredits for entrepreneurs 18,213 155.8 27,584 308.1

Social microcredits 1,061 10.9 3,027 40.5

Financial microcredits 17,152 144.9 24,557 267.6

Microcredits for families 56,177 223.5 99,613 483.0

Total 74,390 379.3 127,197 791.1

Granted previously and not in the portfolio: 1,006 microcredits for €15.7 million

ToTal 128,203 806.8

The breakdown of the business volume by type of microcredit since the start of operations and outstanding loans at December 31, 2011, that is, active microcredits with an outstanding balance at that date, is as follows:



During 2011, MicroBank approved 34,307 projects for a total of €217.9 million. Credits were granted for an average amount of €6,353, raising up to an average of €11,287 for business projects. MicroBank approved a high percentage of the projects submitted for their appraisal, thanks to the individualized analysis of each project and the use of risk appraisal model inherent to a financial institution.

Given the international economic crisis, more loans were granted in 2011. Of particular note is the sharp increase in the number of operations granted to entrepreneurs and microenterprises. This figure rose up to 49% while the amount of these loans icreased by 67% compared to the previous year.

The following charts show these comparable data:

0

20000

40000

60000

80000

100000

120000

/2011/2010

MICROBANK MICROCREDITS GRANTED TO ENTREPRENEURS

Títol picatXifres en gràfic picades

/2010 60.303/2011 100.900

0

2000

4000

6000

8000

10000

/2011/2010

/2010 6011/2011 8939

2010 2010

60,3036,011

20112011

100,9008,939

67.3%▲

48.7%▲

Amount granted(€ thousands)

New credits

A total of 70,920 contracts on liability products were in force at December 31, 2011. A total of 19,447 cards had been contracted and were active at December 31, 2011.

Details on liability transactions are as follows:

Existing contracts

€ thousands

no. Balance

MicroBank current account

12,601 6,306

MicroBank savings account

58,319 20,651

Total Liabilities 70,920 26,957

Cards 19,447

Financial model

MicroBank’s financial model rests on three cornerstones:

• The entity’s own funds and reserves, totaling €122.71 million originating from the capital contribution from ”la Caixa” (€90.19 million), plus accumulated reserves and annual income.

• Customer resources captured via the bank’s savings products, current accounts and savings accounts, totaling €26.9 million.

• Financing received from credit entities, including:

• Loans from the Council of Europe Development Bank (CEB), with a limit of €180 million through to 2019, of which €127.9 million had been drawn down at the end of 2011.

• Contributions from its sole shareholder CaixaBank, totaling €67.86 million at December 31, 2011.

The following chart shows the breakdown of MicroBank’s financing at December 2011:


Loans from CaixaBank CEB loansOwn funds

OtherCustomer funds

35.0% 18.5%

33.6%

5.5%7.4%

Otros:

Recursos de clientes:

Créditos CEB:

Créditos de “la Caixa”

Fondos propios:

Fondos propios: 33,6Créditos de “la Caixa” 18,6Créditos CEB: 35,0Recursos de clientes: 7,4Otros: 5,5

The financing provided by the Council of Europe Development Bank (CEB) and customer deposits contribute to the diversification of bank’s finance sources and to its sustainability.



CaixaBank, MicroBank’s sole shareholder, as well as offering a high degree of equity, also provides all the financial resources needed to support the bank’s growth.

risk management policy

MicroBank’s risk management policy makes use of an array of quantification tools and techniques for the measuring, monitoring and management of risk in accordance with the Basel Committee on Banking Supervision‘s standards and best practices.

Risks undertaken as a result of the bank’s activities can be classified as follows: credit risk, arising from both universal banking and investment banking activities; market risk, including structural balance interest rate risk; the price or risk rate associated with treasury positions, and currency risk; liquidity risk; operational risk; and regulatory compliance risk.

The risk management policy is guided by the following general principles:

• We apply the same risk valuation procedures as CaixaBank, in a wide sense, and duly adapted to the specific characteristics of our customers and products, always placing particular relevance on our own appraisal of the project.

• The Bank’s own microcredit regulations are applied, regarding permitted transactions and detailing the procedures to follow when accepting, granting, monitoring and managing possible defaults on Social, Financial and Family microcredits.

• When granting microcredits, we apply certain criteria specifically adapted to the probability of incurring losses on each of our microcredit lines, both for our generic and substandard provisions, and also for those derived from insolvency circumstances. This is particularly relevant, given that MicroBank does not require collateral for its microcredits.

In the specific case of Social microcredits, the bank relies on specialized staff to supplement the usual procedures applied by CaixaBank. Each proposal is carefully analyzed in order to assess its viability and either approve or reject the transaction.

MicroBank’s Investment and Risk Control department strictly monitors the quality of all approved transactions and the development of the risk profile of granted microcredits, as well as their subsequent default probability.

Business model


Microbank, a benchmark in european microfinance

MicroBank’s activity falls within the European Commission’s remit to foster private initiative in the area of self-employment and also offer support for the creation, consolidation and expansion of microenterprises, which drive growth and generate jobs, favorably affecting social cohesion.

An indication of the great aroused by MicroBank’s activity and its business model is the requested participation in seminars and conferences that gathered the main international institutions interested in microfinance. It is worth highlighting the following:

• A meeting with representatives of Bank of East Asia (BEA) and the Hong Kong Monetary Authority (HKMA) in Hong Kong.

• Participation at the General Assembly of the National Federation of French Savings Banks in Paris.

• Participation in the Global Microcredit Summit in Valladolid.

• Participation in the General Assembly of the International Association of Collateral and Social Credit in Mexico City.

• Participation at the Improving the regulatory environment for microcredit conference in Brussels.

In 2011, MicroBank also received many visits from international institutions:

• Visit by the National Federation of French Savings Banks.

• Visit by the International Committee of the University of Turin and Erste Bank’s corporate university.

MicroBank is a member of the Assembly of the European Microfinance Network (EMN).

MicroBank, a benchmark in European microfinance


Global microcredit summit, Valladolid

MicroBank, the only exclusively microfinance entity in Spain, attended the Global Microcredit Summit which was held in Spain for the first time in November in Valladolid. MicroBank’s Chairman, José Francisco de Conrado, outlined the entity’s experience in this field with his presentation entitled “MicroBank: Adapting microfinance to the Spanish socio-economic situation based on a model of sustainable social banking”. In his speech, the Chairman stressed that microfinance in Spain should be adapted to meet the needs of those entrepreneurs, microentrepreneurs, the self-employed and families who require financing through microcredits.

General Manager of MicroBank also participated in the “Social business and microfinance: Building partnerships with corporations and other entities to speed the end of poverty” Plenary Session where, in conjunction with the founder of Grameen Bank of Bangladesh, Muhammad Yunus, and the Chairman of the Danone Group, Franck Riboud, they presented different types of alliances which could be rolled out in the microfinance sector to help reduce poverty.

The Global Microcredit Summit is held every five years and brings together organizations, entities and professionals in the field of microcredits. Over the space of a week, debates and presentations on various models, new initiatives, prospects and the future of microfinance made this Summit the must-attend event in the sector.

Over 2,000 delegates from around 100 countries attended the Summit which was Chaired by HRH Queen Sofía of Spain in her role as honorary Vice-President of the Global Microcredit Summit Campaign.

Group photo at the Global Microcredit Summit with Prof. Muhammad Yunus (center)

The MicroBank Chairman during his speech at the Global Microcredit Summit in Valladolid



recognition for our social banking model

Throughout 2011, MicroBank received numerous awards for its social support work and its financial soundness. In June, MicroBank received the Titanes de las Finanzas award in the Financing and financial services category, bestowed by the EcoFin Forum in recognition of its innovative work in financial entities and institutions which have shone over the past year.

In October, the entity also received the Corporate Innovation and Social Commitment Award granted by the SERES Foundation to companies whose corporate strategy

incorporates innovative social initiatives. MicroBank’s Chairman, José Francisco de Conrado, collected the award from the President of the Madrid regional government, Esperanza Aguirre, at a ceremony in Madrid.

Criteria taken into account by the jury included the entity’s social and business value. The SERES Foundation, set up in 2009 to promote strategic corporate initiatives to help the social integration of those who are socially at risk, also conferred awards on the Telefónica Foundation and Endesa.

The Chairman of CaixaBank, Isidro Fainé, during the act of Titanes de las Finanzas, celebrated in Madrid


Social impact of microcredits



collaboration with european institutions

The European Commission has launched various programs to encourage private initiative in the field of entrepreneurship and provide support for the creation, consolidation and expansion of microenterprises as the driver for economic growth and job creation.

MicroBank is a highly regarded entity within Europe, as proven by the collaboration agreements reached with two of the main entities through which Europe’s support of microfinance projects is being channelled.

European Investment Fund

• European Investment Fund (EIF): European Union agency for the provision of finance to SMEs.

• One of the EIF’s main objectives is to promote the implementation of EU policy, particularly with regard to entrepreneurial spirit, technology, innovation, growth, employment and regional development.

• The agreement falls within the European Union’s Competitiveness & Innovation Framework Programme (CIP).

Purpose: Provisioning for insolvency risk

Transactions included: Microcredits for entrepreneurs

Period: 4 years (2008-2011)

Maximum amount guaranteed: €18 million

Provision volume: 75% of the Social and Financial Microcredit portfolio in accordance with CIP criteria

Collaboration with European institutions


In 2011, MicroBank renewed or extended its agreements with these entities.

In April, MicroBank and the Council of Europe Development Bank entered into a new €100 million loan agreement to help the former extend its social work by helping entrepreneurs and families via microcredits to help set up, consolidate or grow businesses and family projects.

Before the end of the year MicroBank and the European Investment Fund agreed to extend their collaboration with a new agreement to grant 200 millions in microcredits to entrepreneurs and microenterprises in 2012 and 2013. This financing is aimed at helping create or expand 18,000 new entrepreneurial or business projects. It is estimated that some 27,000 jobs will be created or maintained. The agreement falls within the European Union’s Competitiveness & Innovation Framework Programme (CIP).

Council of Europe Development Bank

• Council of Europe Development Bank (CEB): entity implementing the Council of Europe’s solidarity policies.

• The CEB is an important tool for promoting political solidarity in Europe, helping its 40 Member States to achieve sustainable and fair growth. It takes part in the financing of social projects and contributes to improving the lives of the most disadvantaged groups of the population.

Purpose: Loan transactions

Transactions included: Social, Financial and Family microcredits

Term: 1st maturity - 8 years (2008-2016) 2nd maturity - 8 years (2009-2017) 3rd maturity - 8 years (2011-2019)

Total loan amount: €180 million

Signing of the agreement between MicroBank and European Investment Fund (EIF)

Signing of the agreement between MicroBank and the Council of Europe Development (CEB).



social impact of microcredits

Given the current economic climate, the contribution of microcredits as an instrument to aid social cohesion, economic growth and employment, is more important than ever before. The granting of small loans to entrepreneurs, microenterprises, wage earners or the unemployed who wish to become self-employed and find it difficult to access traditional credit sources, is a clear example of how it is possible to combine both the economic and social impact.

In 2011, MicroBank continued to work on its study on the social impact of microcredits which it began in 2010. This qualitative study is based on a survey carried out among a group of entrepreneurs and microenterprises who had received a loan from MicroBank. The study, which is compiled by the Esade business school, is intended to show how the recipients have benefitted from the microcredits granted, particularly in terms of job creation.

The main conclusions drawn from the 2011 report are:

• The average applicant is Spanish, male, married, with secondary studies who has been self-employed before starting up his own business.

• With regards to the entrepreneurs’ family structures, they are mainly made up of 2 or more members. Though almost up to 42% of the entrepreneurs live in households made up of 4 or more members and in 73% of the total cases those members depend upon the income earned from the venture granted with a microcredit.



The conclusions on the profile of a microenterprise are:

• The majority of the businesses lack legal personality and the entrepreneurs are self-employed (82%). The majority of the businesses studied have just one (64%) or two partners (29%).

• Nearly half of the microcredits studied have been used to open new businesses and are therefore mostly local fledgling companies (61%) (within a single neighborhood or town). Only 12% of the businesses are international in scope.

The conclusions drawn on the operating of the companies are as follows:

• 77% of those businesses opened with the aid of a microcredit are still in operation. The main reason for closing down is the failure to make a profit.

• Contrary to what we might expect, the lack of previous experience in running a small company or business does not imply having a lower chance for the continuity of the new venture.

creating microenterprises and driving the economy

Microcredits have become a key tool in the creation of microenterprises: 74% of microentrepreneurs say that they would not have been able to start up their business without a microcredit while in 40% of the cases, the microcredit accounted for over 50% of the initial investment.

Microcredits help microenterprises to expand: 62% of the microentrepreneurs surveyed said that it was vital to be able to expand their business.

Access to microcredits and being able to set up and manage a company help improve society’s perception of the ability of microentrepreneurs, which does a great deal in strengthening their entrepreneurial spirit.

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Microcredits help create jobs

Microcredits help create jobs. The average number of jobs created per company is 1.5 people. Therefore, and based on these parameters, since it was set up, MicroBank has helped create and consolidate over 42,000 jobs.

Even though the main contribution to job creation of microcredit granting is through self employment, it is also important to highlight that 43% of those new start-ups granted with a microcredit have employed more than the entrepreneur himself.

Access to microcredits helps improve the future job prospects of microentrepreneurs should their project fail.

The report also states that the attainment of a microcredit helps improve quality of life and increase the disposable income for the majority of microentrepreneurs who have managed to keep their businesses open.

FRANCISCO JAVIER MADROÑAL

AND OLgA PETROVA

Russian Restaurant

“The best thing is that I got the loan without having to provide collateral or bank guarantees”

Francisco Javier and his partner Olga Petrova decided to open the first Russian restaurant in Andalusia after enjoying a typical Russian dinner at home. La Rusa Blanca in Cadiz is a restaurant and tapas bar specializing in Russian products. Gradually they have won customers and now employ four other people.

The Institute for Employment and Socioeconomic and Technological Development of the Regional Government of Cadiz helped them draw up a business plan before applying for the microcredit. Despite the typical difficulties encountered by entrepreneurs, they are both committed to improving the business and are convinced that the outcome would not have been as positive without the microcredit.

Names of entrepreneurs: Francisco Javier Madroñal and Olga Petrova

Name of business: La Rusa Blanca



Future plans: Establish the business in the area before expanding to neighboring areas.



PAOLA OLIVARES SÁNCHEZ

Early Learning Center

“The grace period is great. I was inundated with bills in the first few months!”

After attending a course for women entrepreneurs, Paola decided to set up an early learning centre incorporating infant and multisensory stimulation for children and grownups in Caceres. While she was unemployed, Paola had taken several specialist courses to discover the new therapies being used for people with cognitive problems.

Finally, thanks to a MicroBank microcredit and the collaboration of the Mujeres Foundation, she was able to open Intelecto Animado. One year on and she now employs another person and notes that “the most comforting thing is to see that thanks to your business, you are able to reduce people’s limitations and help improve their lives”.

Name of entrepreneur: Paola Antonia Olivares Sánchez

Name of business: Intelecto Animado



Future plans: To expand the business to offer new therapies aimed at children with cerebral disability and open more Intelecto Animado centers outside Extremadura.


MicroBank, Corporate Social Responsibility

corporate social responsibility

code of ethics

Following the reorganization of ”la Caixa” and the creation of CaixaBank in order to indirectly control the banking business of ”la Caixa”, at the end of 2011 MicroBank updated its Code of Ethics to bring it into line with the other Group companies.

MicroBank is committed to carrying out its activities in accordance with the highest legal and ethical standards as well as with optimum professional standards of conduct, in the interest of its customers and the community at large as well as all others who directly deal with it. Achieving this objective greatly depends on the adherence to and observance of values and principles, and our strict compliance with the rules outlined in the Code of Ethics.

The Code aims to promote the following principles and values:

• Integrity, which generates trust - a value that is fundamental to MicroBank.

• Confidentiality of all the information provided by our customers and which is essential for the bank’s activities.

• Respect for individuals, their dignity and fundamental values.

• Responsibility when carrying out one’s job, assuming one’s responsibilities with the necessary commitment.

• Transparency in internal and external processes, in the provision of information and advice, admitting and rectifying any mistakes that may be made in the course of one’s professional activity.

• Teamwork which enriches our professional activity.

• Customer service.

• Social responsibility, as business and human activities which are conducted in a respectful manner towards the environment and current legislation, help to make the world a better place.

The Code establishes its own control mechanisms and communication channels for dealing with possible breaches, or to clarify any doubts that may arise with regard to its interpretation or implementation.


Corporate Social Responsibility

adherence to the united nations’ Global compact

In 2011, the social bank of ”la Caixa” presented its second progress report. With this report, the entity wishes to state the advances made in applying the 10 Principles of the Global Compact and reiterate the bank’s commitment to pursuing its socially-responsible initiatives.

MicroBank has been a signatory to the UN Global Compact since April 2009. This is an international initiative proposed by the UN which focuses on achieving the voluntary commitment of socially responsible entities to abide by 10 Principles in the areas of human rights, labor, the environment and anti-corruption.

MicroBank, like the other participant companies, has voluntarily committed itself to aligning its day-to-day activities with the 10 Principles and to transparently inform society as to its progress in this regard by issuing progress reports.


Microbank’s challenges for the future

In the current economic climate, MicroBank has offered financial support to entrepreneurs, micro-enterprises, individuals and families, offering equitable access to credit for those who are in most need. Satisfactory compliance in the repayment of loans and the high level of acceptance by our customers as to the usefulness of microcredits are two indicators which confirm that the contribution to economic and social value are not only compatible but must be indivisible for projects to grow and endure.

MicroBank’s success over the past four years confirms that its creation was a wise move particularly given the current economic climate. In this time, the social bank of “la Caixa” has enjoyed rapid growth which, combined with the sustainable nature of its business model, has enabled us to build up a strong financial position with an excellent base for the future.

The commercial and financial backing of CaixaBank, our sole shareholder, and the trust bestowed by the European institutions who have collaborated with the bank since the beginning, are factors which help us to continue to set ambitious goals for the future which focus on two main lines:

Firstly, to widen the scope of our current activity to be able to meet the increasing demand in the market which is not being met by traditional financial institutions.

Therefore, in addition to continuing to offer our services via the ”la Caixa” branch network and collaborating entities, we must raise awareness among potential customers (entrepreneurs, microenterprises, individuals and families) that microcredits exist as well as to their usefulness in obtaining financing based on trust in people and their projects.


MicroBank’s challenges for the future

Secondly, we shall continue to strive to meet the growing needs of current and future customers by:

• Expanding our range of products and services to be able to offer a broader service.

• Launching new socially-responsible financial services aimed at groups seeking to add social value to their dealings with the bank.

Four years after it was established, MicroBank is still the only bank in Spain which offers microfinancing exclusively. Today, more than ever, we are convinced that this activity is essential in helping weather the tough economic situation, particularly for those who have been affected directly and most seriously. Therefore, in 2012 we shall continue to work to ensure that those people wishing to pursue a professional or family project are able to do so and are not held back by the lack of financial support.

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ANNUAL REPORT

Documents

ANNUAL REPORT - MicroBank · PDF fileAnnual Report 2011 7 ... The sterling work of the more than 400 entities who collaborate with MicroBank, ... /2008 /2009 /2010 /2011