1. OUR CUSTOMERS ARE EMPOWERED TO FOSTER CHANGE
CA N 2 0 0 9 A N N UA L R E P O RT
CAN 2009 ANNUAL REPORT
www.can.es/en

2. [2] [3]

3. OUR CUSTOMERS
ARE EMPOWERED
TO FOSTER
CHANGE
The detailed 2009 Annual Report,
with individualized and consolidated
data on Caja Navarra, is available at:
www.can.es/en
The images you will see on the pages of
this Annual Report are mostly from social
projects which participate in Civic Banking,
within Caja Navarra’s You Choose, You Decide
platform, as well as from Meeting Points and
activities at our canchas (branches).
[4] [5]

4. This is the last time I will be writing a letter of introduction to
MIGUEL the Caja Navarra Annual Report. It is with great pride that I
SANZ am doing this after having lobbied for changes in the by-laws
which will lead to a total professionalization of Caja Navarra’s
CEO, CAJA NAVARRA governing bodies. As of June, the heads of publically- or
politically-appointed posts, who will become a part of the Board
of Founding Organizations, will cease to be responsible in Caja
Navarra’s governing bodies. With this new advisory board, we
will attempt to provide our points of view regarding relevant
decisions by CAN with non-binding reports.
Thus, the process which began in 2004 has come to a close with
the by-law reforms which led to allowing a wide range of our
social reality to be able to enter the governing bodies. In 2008,
the first stone was laid regarding the current reform with the
Code of Good Governance, which sketched the outlines of what
today has become the norm. From now on, the résumés of the
members on the CAN governing bodies will be made public
and their degree of professionalism will be the sole criteria upon
which their appointment is determined.
Our reform has blazed a new trail in Spain and it will surely
become a model for the rest of the sector when they try to
understand the uniqueness of savings banks in international
financial markets.
I am stepping down as CAN CEO with the satisfaction of seeing
a savings bank which leads the sector in management ratios,
with Civic Banking as a distinguishing strategy, spearheading
a pioneering merger process in the Spanish market, and is a
model of corporate governance.
[6] [7]

5. Due to the huge changes that the financial system is currently
ENRIQUE undergoing, as savings banks, we must transform ourselves in order
GOÑI to preserve the social spirit with which we were born. This calls for us
to deal with three fundamental aspects - to provide ourselves with the
GENERAL DIRECTOR, necessary capitalization instruments in order to face new regulations,
CAJA NAVARRA to strengthen our social charisma, and to leap into the international
market.
At CAN, we are now responding to those challenges. First of all, with
the creation of the Banca Civica Group, along with CajaCanarias
and Caja de Burgos. This new financial group has become the
first Institutional Protection System (SIP, in Spanish) within the
restructuring of the Spanish banking sector, and it has become the
prominent model in the merging of savings banks.
On the other hand, in the face of cutbacks and general downturn
of the market, we are offering an expansive business model, based
on striking up alliances with social organizations, which become
promoters of Civic Banking. Thus, these social organizations grow
and obtain financing for their projects which binds their members to
Civic Banking.
Third, with the potential provided to us by the Banca Civica Group,
we have opened our first office in the United States, the civic initiative
country par excellence, where it will be launching banking operations
in the first quarter of 2011. We have transferred over there the same
principles which the Group has in Spain and, based on the history
of civic mobilization in the United States, our model has enormous
growth potential. However, we are also looking to other markets,
such as Germany and Morocco, which could be the next steps in our
international expansion. Because there are no boundaries to how far
Civic Banking can reach.
[8] [9]

6. [1] A NEW STAGE
P. 12
P. 20
[2] HOW DO
WE DO IT?
P. 58
[3] A TRAILBLAZING
MODEL
[4] CAN
P. 72
OBJECTIVES
2010

7. [1] A
NEW
[12]
STA GE [13]

8. [1] A NEW STAGE
A FINANCIAL Outdated banking models linked to real
STORM,
estate expansion no longer work. Banks
cut back on costs and reduce credit,
without offering new alternatives
to the market which is undergoing
change.
[14] [15]

9. [1] A NEW STAGE
A TSUNAMI WHICH The crisis has tightened the
HAS STRIC KEN reins on short-term income
(due to the lowering of
interest rates, business
margins are reduced).
There is greater pressure on
THE MAR KET,
liquidity.
The Spanish financial
sector has been facing the
financial crisis in a better
position than the rest of the
European countries but it
was late in doing so. And, save
for any exceptions, it has done so
focusing on a sole client, Spain.
And as a consequence, the number
of savings banks will be reduced to
only a few entities, which must be
strongly capitalized.
[16] [17]

10. [1] A NEW STAGE
BUT,ATCAN ,WE HAVE
NOT COME TO A
We have even taken one
step ahead of the market’s
demands. We have created
a group which improves
efficiency and productivity
of the savings banks
STOP
which make up our group (Caja de Burgos,
CajaCanarias and CAN);
with a business model which is unique in the
sector and which reinforces capitalization
through growth. At the same time, we are
properly managing expenses;
with international expansion as one of its key
strategies for the future. Today, we are already
in the United States and we are working on
opening for business in other countries, such
as Morocco and Germany.
AND WE CONTINUE TO INNOVATE!
[18] [19]

11. [2]HOW
DO WE
[20]
DO IT? [21]

12. [2] HOW DO WE DO IT?
WITH A
DIFFERENT
KIND OF
BANK:
At CAN, we have created new way of
understanding banking, because we tell
our clients how much we earn with them and
they decide what social project to finance
with the 30% of the profits that their money
generates. A different way of understanding
the finance business from the perspective of
commitment and responsibility with society.
[22] [23]

13. [2] HOW DO WE DO IT?
WITH A DIFFERENT KIND OF BANK:
TRAILBLAZING,
We have created the Banca Civica
Group with CajaCanarias and Caja de
Burgos. The first banking Institutional
Protection System in the restructuring
of the sector.
Our project has all of the advantages
of a merger and eliminates all of the
inconveniences.
We multiply our talent (1+1+1 equals a
lot more than three), with professionals
who work to connect the Civic Banking
networks.
[24] [25]

14. [2] HOW DO WE DO IT?
WITH A DIFFERENT KIND OF BANK:
AND BETTER.
We are keeping our brand names in each home
region.
We are keeping our local roots and our
commitment to regional development. We boost
investment where it is most needed and we
are keeping control in the home regions.
We are ambitious in our goals and flexible in
how we achieve them.
[26] [27]

15. [2] ¿CÓMO LO HACEMOS? [2] HOW DO WE DO IT?
FOSTERING
NEW VALUES:
Civic Banking has developed a business
model based on transparency, participation
and transformation. In order to achieve
this, it makes values such as citizenship,
mobilization, proximity, sustainability,
responsibility, traceability and governance
its own.
It uses social networks to establish this
and it has proven that it works, with
economic and social results. So, we have
created Civic Banking networks in which
all of us - organizations, customers,
purveyors and citizens - win.
[28] [29]

16. [2] HOW DO WE DO IT?
FOSTERING NEW VALUES:
CITIZENSHIP,
At CAN, we believe in the power of citizens
and we let them participate in our business
model. They receive information and they
know how much we earn with them.
They decide where the social aid goes
(€36,460,000 in 2009). With their choice,
they can help both people or causes which
are close by or global and distant ones.
90% of our customers chose a project in
2009. In sum, 579,724 people participated
in these initiatives.
[30] [31]

17. [2] HOW DO WE DO IT?
FOSTERING NEW VALUES:
MOBILIZATION,
Customers get mobilized to support social
causes. They choose their level of commitment.
They can actively participate with the
social organizations which have available
volunteering opportunities; 31,251 slots in
2009. 12,069 people, who dedicated over
300,000 hours of work, participated in these
opportunities.
The customers promote their projects, seek
financing in the Civic Banking community,
foster the choice of their projects among
other customers, and bring people they know
to Civic Banking because if they become
customers they can economically support
their social cause.
5,174 organizations presented a total of 6,276
social projects.
[32] [33]

18. [2] HOW DO WE DO IT?
FOSTERING NEW VALUES:
PARTICIPATION,
We put citizens and social organizations in
touch with each other (Meeting Points). We
organize informal meetings so customers
and non-customers get to know the social
projects we support, the main role players
and their volunteers.
Last year, we held four Civic Banking
Meeting Points in Barcelona, Bilbao,
Madrid and Pamplona. Over 75,000 people
and 375 organizations gathered at these
meetings in which they were able to
meet those who benefit from our social
investment initiative.
[34] [35]

19. [2] HOW DO WE DO IT?
FOSTERING NEW VALUES:
SUSTAINABILITY,
We are the only financial organization which
totally applies principles of 100% automated
energy savings in our network of branches.
We have been able to reduce energy
consumption by 3.85%, which every year
translates into preventing the emission of
1,542 tons of CO2 from being dumped into the
atmosphere and we have offset 100% of our
emissions by planting trees.
This initiative has been chosen to be a
strategic project by the Institute for Energy
Diversification and Savings (IDAE, in
Spanish), an organization linked to the
Spanish Ministry of Industry, Tourism and
Commerce.
Additionally, we want to expand this system
to our business customers by offering advice
on how to put into practice these sorts of
measures.
[36] [37]

20. [2] HOW DO WE DO IT?
FOSTERING NEW VALUES:
RESPONSIBILITY,
We want offer tools to businesses so they
can better compete within a context in
which transparency and differentiation
play an important role. We help
them to disseminate their economic,
environmental and social impact.
Over 1,000 non-customer SMEs, from all
over Spain, now have a Corporate Social
Responsibility Report, thanks to an
initiative by the Official Institute of Credit
(ICO, in Spanish), in collaboration with
Caja Navarra (CAN).
We have provided a Social Action Report
to 2,000 SME customers, who, thus,
convert their financial expenses into social
assets.
[38]
38 [39]

21. [2] HOW DO WE DO IT?
FOSTERING NEW VALUES:
TRACEABILITY,
Civic Banking customers know about and
participate in the process which tracks their
money. Beyond transparency. We certify
the products and services. The customers
know how much each product they contract
provides to their civic account and they can
decide which investments are to be financed
with their money.
650,000 customers have received the Civic
Account in which they know how much is
earmarked to the social projects they choose.
All of our products are guaranteed with a
Civic Seal, which provides information about
the amount earmarked to our social initiative
from the very moment it was contracted.
[40] [41]

22. [2] HOW DO WE DO IT?
FOSTERING NEW VALUES:
GOVERNANCE.
The citizen customers evaluate and determine
30% of the bonuses for its executives.
Caja Navarra is a pioneer in the
professionalization of the governing
bodies of savings banks. The new CAN by-
laws, which will enter into effect this year,
eliminate the presence of public positions in
the governing bodies, and their election is
exclusively based on professional criteria.
At the same time, we have created a Board
of Founding Organizations, a non-binding
advisory body.
[42] [43]

23. [2] HOW DO WE DO IT?
WITH A
NETWORK OF
NETWORKS:
Our business model provides a significant
improvement of efficiency through growth.
How? With a differentiating strategy -
partnerships with social organizations in order
to jointly get customers; new customers for CAN
and more resources for the social projects which the
organizations manage. In 2009 alone, there were
48,000 new customers (a 7.4% increase), thanks to
this strategy.
Banca Civica Networks help social organizations
to generate new resources and grow. The integration
of 125 professionals into Banca Civica Networks has
meant the reorganization of 37 canchas in expansion
areas - in the regions of Aragón, Cataluña, Madrid,
La Rioja and the Basque Country.
[44] [45]

24. [2] HOW DO WE DO IT?
WITH A NETWORK OF NETWORKS:
PROXIMITY.
Banca Civica is the most mentioned bank in
the blogosphere. We foster interaction with
customers and non-customers.
At www.can.es, we have incorporated social and
financial content, which people have demanded
through the major social networks.
We have the largest social blogosphere, over
1,000 blogs from social organizations which
promote their projects. The customers receive
financial advice and are in contact with
their manager through Facebook, Twitter,
Messenger and Skype; and also through our
Cancha24 office, which offers online financial
services 24 hours a day.
We do Banking 2.0, promoting the creation
of networks and communities. And for that,
we have a multimedia platform where social
mobilizations generated by Civic Banking can
be viewed: TVCan.
[46] [47]

25. [2] HOW DO WE DO IT?
WITH GOOD
RESULTS:
Civic Banking works and it is profitable.
Our accounts prove it. Our ranking among
financial organizations has risen. Our
financial soundness and that of our partners
in the Banca Civica Group allow us to go
forth with our business project without
having to dip into the Bank Restructuring
Fund (FROB, in Spanish), which has been
made available to restructure the financial
system.
[48] [49]

26. [2] HOW DO WE DO IT?
WITH GOOD RESULTS:
RATIOS
We have maintained our rating and have
closed this year guaranteeing our solvency
above the sector average:
9,03% 14,54% BIS RATIO
CORE CAPITAL
3,27% +0,28% CREDIT INVESTMENT
DELINQUENCY RATE
+5,63% +5,16%
BUSINESS INVESTMENT
CUSTOMER DEPOSITS
115MM€ RATING A
EAT RESULT
ACCORDING TO FITCH
[50] [51]

27. [2] HOW DO WE DO IT?
WITH GOOD RESULTS:
RANKING
Among savings banks, we are ranked eighth
based on profits, ranked third based on return
on assets and ranked seventh based on return
on equity.
EAT: 20th/10th
ROA: 32nd/5th
ROE: 41st/5th
IN BLACK, 2001 / IN RED, 2009
[52] [53]

28. [2] HOW DO WE DO IT?
WITH GOOD RESULTS:
CONSOLIDATED
RESULTS ACCOUNT
[IN EUROS]
2009
INTEREST MARGIN 254,394,000
Income from Services and Portfolio Results 192,790,000
GROSS MARGIN 447,184,000
Management Expenses 222,849,000
Repayment 35,906,000
Allowances and Provisions 107,833,000
TRADING INCOME 80,596,000
Other Results 43,286,000
PRE-TAX RESULTS 123,882,000
Taxes on Earnings 8,485,000
AFTER TAX RESULTS 115,397,000
[54] [55]

29. [2] HOW DO WE DO IT?
WITH GOOD RESULTS:
RENOWNED,
AWARDS
> Merco Marcas: a regional financial brand regarding
best corporate reputation in Spain, for the third time
in a row.
> Financial Innovations Awards 2009 (IFS London School
of Finances) in the category of Best CSR Strategy.
CASE STUDY IN:
> USA: Georgetown, George Washington, Stern,
Wharton, Columbia, Harvard.
> Mexico: IPADE.
> Spain: IESE, IE, EAE, ESADE and San Telmo.
> Papers: Lauder Institute, University of Michigan,
Universidad de Mondragón, Universidad Jaume I
and Universidad Autónoma de Madrid.
OTHER
> Best Company to Work For, Ranked 34th, according to
Merco Personas (2009).
> Company with the Best Reputation, Ranked 41st,
Merco (2010).
[56] [57]

30. [3]A
TRAILB LAZING
MODEL
[58] [59]

31. [3] A TRAILBLAZING MODEL
A BANK IS BORN
FROM THREE
SAVINGS BANKS
Caja Navarra, CajaCanarias and Caja de
Burgos began to forge their grand project in
2009, getting a step ahead of the current
banking merger process.
The launching of the Consolidated Economic
Group (GEC, in Spanish) allows us to be
larger, gain agility, talent, competiveness
and leadership.
The Banca Civica Group is the pioneering
organization in the merger process of
the Spanish financial sector in using the
banking Institutional Protection System
through the creation of a Consolidated
Economic Group. It is the only one, for the
time being, which has created one without
recurring to public aid set forth in the Bank
Restructuring Fund.
[60] [61]

32. [3] A TRAILBLAZING MODEL
TIMELINE
Caja Navarra, CajaCanarias and Caja de Burgos
began to forge their grand project in 2009,
getting a step ahead of the current banking
merger process
SUPPORT
BY THE PRESENTATION
FIRST TECHNICAL GOVERNING OF THE GROUP BRAND
CONTACTS WORK BODIES
OCTOBER 2009 NOVEMBER JANUARY 2010 MARCH 9 MARCH 27 APRIL 7 MAY 13 JUNE 9 JULY 1
PRESENTATION PRESENTATION OF APPROVAL BY SIGNING OF DRAFTING OF LAUNCHING
OF THE PROJECT THE PROPOSAL THE THREE THE CONTRACT THE OF OPERATIONS
TO SPAIN’S TO THE BANK OF EXECUTIVE REGARDING THE ESTABLISHMENT
ASSOCIATION SPAIN BOARDS OF THE CREATION OF THE OF THE GROUP
OF FINANCE SAVINGS BANKS GROUP
JOURNALISTS
(APIE, in
Spanish)
[62] [63]

33. [3] A TRAILBLAZING MODEL
FINANCIAL
INTEGRATION
We set into motion unified policies,
diversification and shared risk assumption.
We defined tracking, discipline and control
mechanisms which guarantee the Group’s
financial stability.
We base ourselves on the mutualization of the
individual results. All of the organizations
participate in the Group’s benefits; 35%
in the first year and 50% in the years
afterwards. Competitiveness is promoted
amongst the organizations, both individually
and as a group. It is a ‘win-win’ situation for
everyone.
Moreover, the three savings banks 100%
guarantee each other in regard to solvency
and liquidity.
[64] [65]

34. [3] A TRAILBLAZING MODEL
BUSINESS
INTEGRATION
The group has one sole image before the
rating agencies, the Bank of Spain, large
clients and the international market.
Businesses are becoming integrated, using
economies of scale and of scope in the
generation of results through banking or
financial business.
We are consolidating those units which
improve with merging - customer
banking, business banking, international,
disintermediation, insurance and
corporation.
We are applying the advantages of the
economies of scale to our future unified
areas.
[66] [67]

35. [3] A TRAILBLAZING MODEL
OPERATIONAL
INTEGRATION
The new model allows us to reduce
operational costs, eliminate duplicating
services and strengthen competitive and
managerial capabilities.
The group improves the employability of
its workers (career development in the
international field). There are over 4,500
employees in 777 offices, throughout 22
provinces in Spain.
We are promoting a universal bank around
Civic Banking as the axis of the merger.
[68] [69]

36. [3] A TRAILBLAZING MODEL
STRATEGIC
INTEGRATION
Our proposal is to bring the Civic Banking
model to 1.8 million customers in Spain,
with €3.9 million of its own resources for
international expansion.
Banca Civica Institutions will begin to
operate in the three savings banks on
September 1, 2010.
Teams of Banca Civica Networks will
begin to operate in the three savings banks
as of July 1, 2010.
[70] [71]

37. [4] CA N
OBJEC TIVES
2010
[72] [73]

38. [4] CAN OBJECTIVES 2010
WE ARE GROWING
Banca Civica consolidates a national and
international growth project.
For the Group, 2010 will be the year of
expansion, on a national level, from the new
headquarters in Madrid, and on an international
level, beginning with the United States,
where we have already tried out our business
model.
In 2010, Banca Civica Networks will grow -
200 professionals which bring organizations
and customers together. We measure the ‘civic
footprint’ of 100% of the social projects which
the organizations present.
We want to improve our efficiency through
the growth of these networks.
[74] [75]

39. [4] CAN OBJECTIVES 2010
WE LOVE
CIVIC BANKING
We have already planted the Civic Banking
flag in the land of pioneers - in the United
States. From the strategic heart of Washington,
DC, we are spreading our model to important
social organizations.
Our reception has been a positive one.
Prestigious associations such as World
Vision, Mary’s Center and United for DC have
entered into partnership with us in order
to grow; also, Ashoka (a global leader in
the social entrepreneur sector), Episcopal
Relief & Development, US Holocaust Museum,
The Global Fund for Children, The Resource
Foundation, Child Aid, American Initiatives
Foundation and Proof/Media for Social Justice.
Social mobilization is one of the
characteristics of American identity - 1.5
million non-profit organizations and 60
million volunteers. It is the best lab for Civic
Banking to ‘pollinate’ the international market.
[76] [77]

40. [4] CAN OBJECTIVES 2010
... AND BEYOND
The international market is our big
challenge this year. This is why, after the
U.S. experience, we are studying expanding
to other destinations which hold enormous
possibilities for our business model -
Germany, where many economic policies have
an important sustainable background; and
Morocco, where we are with businesses which
are clients of the Group, supporting and
promoting investment.
This is the following step in order to continue
the expansion of Banca Civica and rediscover
distant markets. “We want to become the best
financial civic organization in Europe.”
[78] [79]

41. [4] CAN OBJECTIVES 2010
ECONOMIC
GOALS
Our economic goals for 2010 are based
on attaining a greater capitalization, in
increasing our assets:
Solvency: to improve on 15 basic points.
Delinquency Rate: not to surpass 4.5% or 2/3
of the sector average.
ROE: to achieve a return which doubles that
of 10-year bonds.
Networks: to increase donations by
business areas. 17.5% in retail banking;
15% in international banking; 10% in big
businesses; 10% from individuals; and
40% in non-financial services. To attain a
95% compliance of the business plan in the
financial disintermediation area.
Assets: 2% more than in 2009.
Products and Services: 7.5% more in
contracting.
Liquidity: 1,25x1 (within the balance sheet);
1,5x1 (within and out of the balance sheet).
[80] [81]

42. [4] CAN OBJECTIVES 2010
MANAGEMENT
GOALS
In order to comply with the economic goals,
we have also established the management
goals needed to attain them:
Customer Rating: 7 regarding individuals and
SMEs; 8.5 concerning private banking.
Participation: 90% of the customers choose a
social project.
Social Impact: 5,500 projects from which to
choose.
Network-based Growth: 5,000 new customers
(through Banking 2.0); 80 new customers
each quarter (each manager).
Avant Garde Territories: Rating of 3.85 out of
5 by the employees in the survey on the work
environment; 4% of investment in training;
2,300 CSR reports (non-customers); 50 new
projects from U.S. social organizations.
[82] [83]

43. PUBLISHER: CAJA NAVARRA.
COMMUNICATION DEPARTMENT
DESIGN: BERMER&CO.
PRINTING: GRÁFICAS CASTUERA
PRINTED ON 100% RECYCLED AND
C LORINE-FEE ECOLOGICA P PE
CHLOR NE EE ECOLOGICAL PAPER
OLOGICAL
LEGAL DEPOSI NA 2406-07
E A DEPOSIT:
P 406-
6-07

44. [86] [87]