Chairman's statement

The 2008 Social Responsibility Report supplements the information provided in the Caja Madrid Annual Report and the reports of Obra Social and Fundación Caja Madrid. For the fifth straight year, this report has been prepared in accordance with the G3 Sustainability Reporting Guidelines of Global Reporting Initiative, and attained the A+ seal, the maximum commendation of the scale and scope of its content.

In the midst of the current economic uncertainty, the publication of this report underscores Caja Madrid's strong social commitment. This year’s report gives greater voice to the concerns of our stakeholders, with emphasis on the issues they consider most significant, including: the importance of ensuring that financial products are accessible to all persons, our contributions to the communities where Caja Madrid operates, and making the development of renewable energies a priority focus of our project finance activities.

True to its foundation as an entity dedicated to serving our society, the Caja Madrid business model has always has a dual mission: financial and social. We are thus mature players in the world of corporate social responsibility, well prepared to satisfy the demands and needs of our customers and communities by developing the most appropriate policies, products and services to further our society's progress and welfare.

Ever since its origin, one of Caja Madrid's goals has been to deliver financial services to social groups that have been shut out from the financial world. Along these lines, this past year we implemented a plan in our entire branch network to offer advice and personalised solutions to persons who are having trouble meeting their loan repayment obligations in the current economic downturn.

We have contributed to strengthening the business community and fostering the development of small and medium enterprises (SMEs) by partnering with public and private entities in a large number of varied initiatives. Recently, these efforts have included support for aid provided to small businesses by ICO, Spain's Official Credit Institute, most notably the ICO credit line for SMEs, Business Growth, Internationalisation and Entrepreneurs. We also continued contributing to financing SMEs and individual entrepreneurs in collaboration with Avalmadrid, S.G.R. and entered into a 2,250 million euros agreement with the regional business association CEIM Confederación Empresarial de Madrid and the Chamber of Commerce and Industry of Madrid. Caja Madrid also signed up for the European Investment Bank (EIB) programme to finance small and medium enterprises. In all, these initiatives are bringing more than 3,000 million euros of financing to Spanish businesses on favourable terms.

In 2008, Obra Social and Fundación Caja Madrid allocated a total of 277.95 million euros to different assistance, educational, cultural and environmental programmes and activities throughout the country. The lion's share of the funding for Obra Social (58%) has gone to activities involving care and assistance for the elderly, infirm and otherwise dependent persons, highlighted by the ECA project, which succeeded in placing a total of 3,000 disabled or socially vulnerable persons in jobs with 1,600 employers in Spain.

Caja Madrid is keenly aware of the environmental challenges faced by society. The Obra Social “Two million trees” project has now planted 1,116,765 trees of varied species in different parts of the country. In 2008 alone, this resulted in the fixation of 748 tonnes of carbon, with the consequent reduction and absorption of C02 emissions.

Another contribution made in 2008 to the preservation and betterment of our environment was the 872.4 million euros in financing extended to projects promoting the development and use of green energies and waste treatment facilities.

Our goals are guided by a sustainable business strategy based on the confidence placed in us by more than seven million customers. They and all of the stakeholders in Caja Madrid are at the front and centre of our commitment to social responsibility. We are firmly convinced that the pursuit of policies informed and inspired by a sense of social responsibility strengthen Caja Madrid and help us achieve sustainable results in our continuing effort to improve the social, economic and environmental conditions of current and future generations.

Miguel Blesa de la Parra Caja Madrid Chairman