FROB Annual Report

• FROB continued its work on the resolution of financial institutions through, among other activities, simulation exercises and testing of institutions’ capabilities, in close coordination with other national, European and international resolution authorities, while closely monitoring developments in the Spanish and global banking sectors.

• It also continued to monitor and manage its investee entities and the legal proceedings arising from irregular conduct identified at institutions that received public financial assistance.

 Madrid, 16 July 2026.

FROB today published its 2025 Annual Report, highlighting the main milestones in its activities during the year, which also marked the tenth anniversary of the establishment of the European Single Resolution Mechanism (SRM). In his institutional message, FROB’s Chair, Álvaro López Barceló, emphasised that: “Over the past ten years, the SRM has become firmly established as a cornerstone of the framework of rules and institutions that safeguard financial stability in Europe. The overall assessment is undeniably positive, with significant progress made in a number of areas, including resolution planning, financing, implementation and the regulatory framework.”

During the 2025 financial year, FROB continued to strengthen its resolution capabilities with the aim of ensuring an effective response in the event of a crisis, while continuing to manage its investee entities. The principal activities carried out by FROB during 2025 are summarised below:

Activity within the European Resolution Framework

• FROB continued to exercise its powers and responsibilities in the resolution of financial institutions, working closely with the European Single Resolution Board (SRB), the Bank of Spain and the CNMV in the exercise of their respective national preventive functions.

• It also continued its efforts to strengthen both its own preparedness and that of the institutions for potential resolution scenarios. This included participating in simulation exercises conducted at the SRB level, as well as developing the new methodology for assessing the resolvability of institutions and the related process for adopting corrective measures which the use of DGF funds was envisaged. It also participated in a resolution simulation exercise involving a significant institution, with the aim of testing the determination that an institution was failing or likely to fail and the implementation of the sale of business tool using FROB’s powers relating to structural modifications.

• In this context, FROB conducted, together with the Bank of Spain and the Deposit Guarantee Fund (DGF), a resolution simulation exercise involving a fictitious less significant credit institution under its remit, in which the use of DGF funds was envisaged. It also participated in a resolution simulation exercise involving a significant institution, with the aim of testing the determination that an institution was failing or likely to fail and the implementation of the sale of business tool using FROB’s powers relating to structural modifications.

Activities related to previous banking restructurings

• In this area, FROB continued, as in previous years, to focus on monitoring and managing its investments in CaixaBank (through BFA) and Sareb, as well as managing litigation arising from alleged irregular conduct identified at institutions that received public financial assistance.

• As a result of BFA’s strong financial performance and financial position, FROB received dividends of 770 million euros from the company for the second consecutive year. At the date of publication of this Annual Report, the dividends distributed by BFA to FROB from its 2023, 2024 and 2025 profits amounted to 1.722 billion euros.

• As regards Sareb, during 2025 the company adopted and implemented a series of initiatives and strategies to contribute to the creation of a public stock of affordable and social rental housing, while continuing the disposal of its remaining real estate and financial assets.

• FROB also continued its work to pursue legal action in respect of alleged irregular conduct identified at credit institutions that received public financial assistance. It remains a party to a number of legal proceedings at different stages of the judicial process.