Digital Consumer Bank - H1'21 Earnings Presentation - Banco Santander
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28 July 2021 Digital Consumer Bank H1’21 Earnings Presentation
Important Information
Non-IFRS and alternative performance measures
This presentation contains, in addition to the financial information prepared in accordance with International Financial Reporting Standards (“IFRS”) and derived from our financial statements,
alternative performance measures (“APMs”) as defined in the Guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority (ESMA) on 5 October 2015
(ESMA/2015/1415en) and other non-IFRS measures (“Non-IFRS Measures”). These financial measures that qualify as APMs and non-IFRS measures have been calculated with information from
Santander Group; however those financial measures are not defined or detailed in the applicable financial reporting framework nor have been audited or reviewed by our auditors. We use these
APMs and non-IFRS measures when planning, monitoring and evaluating our performance. We consider these APMs and non-IFRS measures to be useful metrics for our management and investors
to compare operating performance between accounting periods, as these measures exclude items outside the ordinary course performance of our business, which are grouped in the “management
adjustment” line and are further detailed in Section 3.2 of the Economic and Financial Review in our Directors’ Report included in our Annual Report on Form 20-F for the year ended 31 December
2020. Nonetheless, these APMs and non-IFRS measures should be considered supplemental information to, and are not meant to substitute IFRS measures. Furthermore, companies in our industry
and others may calculate or use APMs and non-IFRS measures differently, thus making them less useful for comparison purposes. For further details on APMs and Non-IFRS Measures, including its
definition or a reconciliation between any applicable management indicators and the financial data presented in the consolidated financial statements prepared under IFRS, please see the 2020
Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on 26 February 2021, as well as the section “Alternative performance measures” of the annex to the Banco
Santander, S.A. (“Santander”) Q2 2021 Financial Report, published as Inside Information on 28 July 2021. These documents are available on Santander’s website (www.santander.com). Underlying
measures, which are included in this presentation, are non-IFRS measures.
The businesses included in each of our geographic segments and the accounting principles under which their results are presented here may differ from the included businesses and local applicable
accounting principles of our public subsidiaries in such geographies. Accordingly, the results of operations and trends shown for our geographic segments may differ materially from those of such
subsidiaries.
Forward-looking statements
Santander advises that this presentation contains “forward-looking statements” as per the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements may be identified
by words like “expect”, “project”, “anticipate”, “should”, “intend”, “probability”, “risk”, “VaR”, “RoRAC”, “RoRWA”, “TNAV”, “target”, “goal”, “objective”, “estimate”, “future” and similar expressions.
Found throughout this presentation, they include (but are not limited to) statements on our future business development, economic performance and shareholder remuneration policy. However, a
number of risks, uncertainties and other important factors may cause actual developments and results to differ materially from our expectations. The following important factors, in addition to
others discussed elsewhere in this presentation, could affect our future results and could cause materially different outcomes from those anticipated in forward-looking statements: (1) general
economic or industry conditions of areas where we have significant operations or investments (such as a worse economic environment; higher volatility in the capital markets; inflation or deflation;
changes in demographics, consumer spending, investment or saving habits; and the effects of the COVID-19 pandemic in the global economy); (2) exposure to various market risks (particularly
interest rate risk, foreign exchange rate risk, equity price risk and risks associated with the replacement of benchmark indices); (3) potential losses from early repayments on our loan and investment
portfolio, declines in value of collateral securing our loan portfolio, and counterparty risk; (4) political stability in Spain, the United Kingdom, other European countries, Latin America and the US (5)
changes in legislation, regulations, taxes, including regulatory capital and liquidity requirements, especially in view of the UK exit of the European Union and increased regulation in response to
financial crisis; (6) our ability to integrate successfully our acquisitions and related challenges that result from the inherent diversion of management’s focus and resources from other strategic
opportunities and operational matters; and (7) changes in our access to liquidity and funding on acceptable terms, in particular if resulting from credit spreads shifts or downgrade in credit ratings for
the entire group or significant subsidiaries.
2Important Information
Numerous factors could affect our future results and could cause those results deviating from those anticipated in the forward-looking statements. Other unknown or unpredictable factors
could cause actual results to differ materially from those in the forward-looking statements.
Forward-looking statements speak only as of the date of this presentation and are informed by the knowledge, information and views available on such date. Santander is not required to
update or revise any forward-looking statements, regardless of new information, future events or otherwise.
No offer
The information contained in this presentation is subject to, and must be read in conjunction with, all other publicly available information, including, where relevant any fuller disclosure
document published by Santander. Any person at any time acquiring securities must do so only on the basis of such person’s own judgment as to the merits or the suitability of the securities for
its purpose and only on such information as is contained in such public information having taken all such professional or other advice as it considers necessary or appropriate in the
circumstances and not in reliance on the information contained in this presentation. No investment activity should be undertaken on the basis of the information contained in this presentation.
In making this presentation available Santander gives no advice and makes no recommendation to buy, sell or otherwise deal in shares in Santander or in any other securities or investments
whatsoever.
Neither this presentation nor any of the information contained therein constitutes an offer to sell or the solicitation of an offer to buy any securities. No offering of securities shall be made in the
United States except pursuant to registration under the U.S. Securities Act of 1933, as amended, or an exemption therefrom. Nothing contained in this presentation is intended to constitute an
invitation or inducement to engage in investment activity for the purposes of the prohibition on financial promotion in the U.K. Financial Services and Markets Act 2000.
Historical performance is not indicative of future results
Statements about historical performance or accretion must not be construed to indicate that future performance, share price or future (including earnings per share) in any future period will
necessarily match or exceed those of any prior period. Nothing in this presentation should be taken as a profit forecast.
Third Party Information
In particular, regarding the data provided by third parties, neither Santander, nor any of its administrators, directors or employees, either explicitly or implicitly, guarantees that these contents
are exact, accurate, comprehensive or complete, nor are they obliged to keep them updated, nor to correct them in the case that any deficiency, error or omission were to be detected. Moreover,
in reproducing these contents by any means, Santander may introduce any changes it deems suitable, may omit partially or completely any of the elements of this document, and in case of any
deviation between such a version and this one, Santander assumes no liability for any discrepancy.
3Index
1 2 3 4
Strategy and Results Concluding Appendix
business remarks
4Strategy and business
Digital Consumer Bank is one of Santander’s strategic growth initiatives
Digital
KEY DATA H1’21 YoY Var.4
Consumer
Bank
STRATEGIC PRIORITIES
Customer loans1 EUR 115.5 bn +0.1% Grupo Santander vision: create the largest digital consumer
bank by the combination of SCF’s leadership in consumer
Customer funds
2
EUR 56.2 bn +11.8% finance and Openbank’s digital capabilities.
Auto: strengthen auto financing leadership, reinforce leasing and
Underlying att. profit EUR 569 mn +11.1%
subscription services and lead on-line mobility financing solutions for auto.
EUR 89 bn loan book in H1’21
Underlying RoTE 12.0% +1.5 pp
Consumer Non-Auto: gain market share in consumer financing leveraging
Efficiency ratio* 46.6% +76 bps our position in offline to grow in e-commerce checkout lending and BNPL.
EUR 19 bn loan book in H1’21
1st European
Market share
Consumer Bank Retail: improve digital capabilities to increase customer engagement of our
3 digital platforms, currently with EUR 33.2 bn in customer funds in H1’21
Countries 18
Cost reduction and Simplification: accelerate digitalization to transform
Active customers 19.4 mn -4.3% the business and improve efficiency. Main drivers:
• Organizational simplification: transition from banking licenses to branches
Employees 15,834 +3.0% in the Western Hub
• Streamline IT leveraging Openbank’s IT capabilities
• Evolve our distribution model and increase process automatization
(1) Gross loans excluding reverse repos.
(2) Excluding repos.
(3) Footprint in the following countries: Austria, Belgium, Canada, China, Denmark, Finland, France,
Germany, Greece, Italy, Netherlands, Norway, Poland, Portugal, Spain, Sweden, Switzerland, UK, China and Canada. 5
(4) Constant euros.
* Excluding Digital ODS: Efficiency ratio at 43.9% (+5 bps YoY). Note.- Digital ODS (Open Digital Services S.L.) is the technology company of OpenbankStrategy and business
Digital
Santander Digital Consumer Bank: sound foundations with three building blocks Consumer
Bank
Digital Consumer Bank
A Auto B Consumer C Retail
Auto loan and leasing business Consumer financing business Full-service digital bank
>75k Dealer &
OEM PoS >55k Merchant PoS 1.6 mn Customers
c. EUR 89 bn Loans c. EUR 19 bn Loans >EUR 33 bn Customer Funds
Digital Technology: Best-In-Class Capabilities
Unique funding capabilities for business growth
c. 8 mn leads per year to serve OEMs, dealers, offline + e-commerce merchants and end customers
6Strategy and business
Digital
Europe’s consumer finance leader: solid business model, geographic diversification Consumer
Bank
and leading market shares in auto/mobility finance and in personal finance/e-commerce
Monoliner consumer businesses with c. 130,000 point of sale partners
A Auto (c. 75,000 PoS): Long-standing base of European
captive agreements (>110) with several OEMs
B Consumer/Non-Auto (c. 55,000 PoS): Agreements with main retailers chains,
model evolving based on digitalization Outstanding loans as of June-21
(% of total DCB in EUR bn and ranking*)
C Openbank: Santander 100% digital bank
Leader among its European competitors in deposits
New technology stack: Openbank’s efficient customer acquisition and Nordics 15%
engagement platform.
BeNeLux Germany Poland
UK 11%
2%
More than 19 million customers with >19 mn loan contracts #2 32%
#2
3%
Presence in 16 European countries plus China and Canada France
Austria
Switz. 3%
13% 0.4%
#2
Italy 8%
#2
Top Employer Europe 2021 Greece
Portugal Spain 12%
(SC Austria SC Germany SC France 1% #1
SC Belgium SC Netherlands SC Poland )
China EUR 2.4 bn Canada EUR 0.4 bn
(*) Retail Car Finance position in local market as of FY2020 (Calculated as market share of New + Used retail cars financed by DCB in the country / Total Market units financed for individuals 7
in the country). Source: internal estimates based on information from local associations, magazines and market knowledge. DCB Management perimeter (now includes SC UK).Strategy and business
Digital
Digital Consumer Bank: Key initiatives Consumer
Bank
A Auto B Consumer C Retail
› Delivering mobility solutions: › Launched TIMFIN Joint-Venture in › Run a retail banking business without
enhancement of auto leasing and February, reaching more than 2,000 the need of an extensive branch
subscription service development points of sale in H1’21 network, from customer acquisition to
› Digital online financing platform for engagement, retention and cross-
› Create an ecommerce platform selling traditional banking products
dealers and OEMs
serving merchants, customers and (mortgages, wealth, etc.).
› Enhancement of value propositions third party players
for our key partners: digital, loyalty › Openbank Argentina Launch in 2021
tools etc. › New Verticals development: Bicycles,
Education, Green Energy (Solar, Wall › Openbank Europe: optimize synergies
› Used Car business growth across Box, etc.) and Health & Beauty with SCF Consumer business
Europe planning expansion through
online platforms
› Launch Regional EU BuyNowPayLater (BNPL) Product/APIs
Technology Platform › Enhance Retail banking capabilities upon Openbank’s platform
› Set-up new efficient IT structure for Western Hub as we transition from banking licenses to branches
8Strategy and business
Digital
Customer loans slightly above previous year. The impact of covid-19 related lockdowns
Consumer
Bank
was mitigated, and new lending was already up 20% YoY
Total customer loans (Constant EUR bn)1 Geographical diversification (% Total loans, Jun-21)
115.4 115.0 117.0 115.4 115.5 2
Other; 11%
UK; 10%
Germany;
31%
Italy; 8%
Jun-20 Sep-20 Dec-20 Mar-21 Jun-21
Jun-21 Jun-20 YoY (%) QoQ (%) France; 13%
Auto 88.5 86.4 2.4 0.6 Nordics; 15%
Consumer business 19.0 20.2 -6.0 0.3 Spain; 12%
Others and Retail 3 8.0 8.8 -9.0 -6.0
Total customer loans 115.5 115.4 0.1 0.1
Group criteria.
(1) Excludes reverse repos. End period exchange rate as at Jun-21. 9
(2) Austria, Belgium, the Netherlands, Portugal, Poland, Switzerland, Canada and Openbank.
(3) Includes Openbank customer loans.Strategy and business
Digital
Consumer
Customer deposits increased 9% YoY; wholesale funding costs stable at low levels Bank
Total customer funds (Constant EUR bn)1 Wholesale market funding2 (EUR bn)
56.2
52.3 54.0 42.9 41.2 42.0
50.3 51.2 38.8 38.5
13.0 13.1 15.6
15.2 14.9
29.9 28.1 26.4 23.6 23.6
Jun-20 Sep-20 Dec-20 Mar-21 Jun-21
Jun-20 Sep-20 Dec-20 Mar-21 Jun-21
Jun-21 Jun-20 YoY (%) QoQ (%)
Secured Unsecured
Demand 43.8 39.0 12.3 2.1
Time 10.2 10.7 -4.5 -0.7 Jun-21 Jun-20 YoY (%) QoQ (%)
Total deposits 54.0 49.7 8.7 1.5
Unsecured 23.6 29.9 -21.1 -0.3
Mutual Funds 2.1 0.5 - 175.8
Secured 14.9 13.0 14.9 -1.7
Total customer funds 56.2 50.3 11.8 4.1
Total wholesale 38.5 42.9 -10.2 5.3
Managed portfolios 0.6 0.4 50.3 14.5
Group criteria.
(1) Excludes repos. End period exchange rate as at Jun-21. 10
(2) Unsecured: short and medium term unsecured issuances and subordinated debt. Secured: Asset-Backed Security bonds placed in the market, Repos, Covered bonds and others.
Provisional data.Index
1 2 3 4
Strategy and Results Concluding Appendix
business remarks
11Results
Digital
NII in line with last year on a cumulative basis, absorbing volume impacts at the Consumer
Bank
beginning of the year with positive income performance in the second quarter
Net interest income (Constant EUR mn)1 Yields and Costs (%)
1,068 1,058 1,084 1,058 1,073
4.22% 4.07% 4.05% 3.98% 3.94%
Yield on loans
0.44% 0.39% 0.35% 0.30% 0.26%
Cost of deposits
Q2'20 Q3'20 Q4'20 Q1'21 Q2'21
Q2'20 Q3'20 Q4'20 Q1'21 Q2'21
2
NIM
3.00% 2.96% 2.96% 2.83% 2.81%
Central Bank interest rate 3
-0.50% -0.50% -0.50% -0.50% -0.50%
(1) Average exchange rates as at 6M’21. Q1’21 includes less days for accrual of interest than previous year. 12
(2) Group criteria. NIM is calculated as Net Interest Income / Total Average Assets.
(3) Quarter average, ECB deposit facility.Results
Digital
Net fee income increased 11% compared to H1’20 due to new lending increases, Consumer
Bank
mainly in Q2’21 after lockdowns lifted (new lending+18% QoQ)
Net fee income (Constant EUR mn)1
211 205 206
189
164
H1'21 H1'20 YoY (%) QoQ (%)
Insurance 326 306 6.4 13.0
Other 69 49 39.2 -5.8
Total net fee income 395 356 11.0 9.4
Q2'20 Q3'20 Q4'20 Q1'21 Q2'21
(1) Average exchange rates as at 6M’21. 13Results
Digital
Total income increased 4% YoY despite significant covid-19 lockdowns at the Consumer
Bank
beginning of the year. Strong activity expected for H2’21
Total income (Constant EUR mn)1
*
1,364
1,320 1,306 1,300
1,228 H1'21 H1'20 YoY (%) QoQ (%)
Net interest income 2,130 2,154 -1.1 1.4
Net fee income 395 356 11.0 9.4
Customer revenue 2,525 2,510 0.6 2.6
Other2 80 7 - -64.8
Total income 2,606 2,517 3.5 -0.5
Q2'20 Q3'20 Q4'20 Q1'21 Q2'21
(1) Average exchange rates as at 6M’21. 14
(2) Other includes gains/losses on financial transactions and other operating income, including operational lease. Q2 included contribution to the Single Resolution Fund.
* Total income in Q4’20 including extraordinary results of 30 mn due to insurance earned-out and other minor one-offs.Results
Digital
Costs increased 5% due to new digital investments and perimeter (mainly Sixt, TIMFIN) Consumer
Bank
and fell slightly at constant perimeter excluding investments
Operating expenses (Constant EUR mn)1
601 601 613
589
558
H1'21 H1'20 YoY (%) QoQ (%)
Operating Expenses * 1,214 1,153 5.3 1.9
Employees (#) 15,834 15,373 3.0 0.0
Q2'20 Q3'20 Q4'20 Q1'21 Q2'21
(1) Average exchange rates as at 6M’21. 15
Note.- Digital ODS (Open Digital Services S.L.) is the technology company of Openbank
* Excluding Digital ODS: Costs +4% YoY (cost decrease in constant perimeter -0,4% YoY at current FX)Results
Digital
Net operating income remained solid and above H1’20 in spite of the impact of strategic Consumer
Bank
investments for future growth. Efficiency ratio at 46.6%
Net operating income (Constant EUR mn)1
764
730
705 687
670
H1'21 H1'20 YoY (%) QoQ (%)
Total income 2,606 2,517 3.5 -0.5
Operating Expenses (1,214) (1,153) 5.3 1.9
Net operating income 1,392 1,364 2.0 -2.5
Efficiency ratio* 46.6% 45.8% 76 bps
Q2'20 Q3'20 Q4'20 Q1'21 Q2'21
(1) Average exchange rates as at 6M’21. 16
Note.- Digital ODS (Open Digital Services S.L.) is the technology company of Openbank
* Excluding Digital ODS: efficiency rate 43.9% (+5 bps YoY).Results
Digital
Strong LLP reduction due to very positive credit risk performance amid current Consumer
Bank
environment, maintaining a high-quality portfolio
Net LLPs (Constant EUR mn)1
H1'21 H1'20 YoY (%) QoQ (%)
224 Net operating income 1,392 1,364 2.0 -2.5
202 208
Loan-loss provisions (308) (533) -42.2 -14.7
166
142 Net operating income after
1,084 832 30.3 1.3
provisions
NPL ratio 2.18% 2.31% -14 bps -5 bps
2
Cost of credit 0.64% 0.74% -10 bps -5 bps
Coverage ratio 112% 108% 3.9 pp 0.4 pp
Q2'20 Q3'20 Q4'20 Q1'21 Q2'21
(1) Average exchange rates as at 6M’21. 17
(2) Cost of credit based on 12 month loan-loss provisions divided by average customer loansResults
Digital
Underlying attributable profit 11% higher YoY on the back of net fee income and lower Consumer
Bank
LLPs, both due to stronger economic performance and outlook
Underlying Attributable Profit (Constant EUR mn)1
348
H1'21 H1'20 YoY (%) QoQ (%)
PBT 1,008 895 12.6 -1.3
292 Tax on profit (265) (238) 11.6 -3.1
278 284
277 Consolidated profit 742 658 12.9 -0.6
Minority interests (173) (146) 19.1 16.6
Underlying attributable
569 512 11.1 -5.3
profit
Effective tax rate 26.3% 26.6% -0.3 pp
Q2'20 Q3'20 Q4'20 Q1'21 Q2'21
(1) Average exchange rates as at 6M’21. 18Index
1 2 3 4
Strategy and Results Concluding Appendix
business remarks
19Concluding remarks
DCB is delivering profitable results in 2021…
Digital
Consumer
Bank
The covid-19 pandemic has caused a significant deterioration in the economic environment backdrop.
In H1’21, European car registrations grew 27% year-on-year1 following a year of unprecedented declines across the region
Financial System (FY20 decrease of -24%) as a consequence of the covid-19 pandemic. Despite steep declines during the first two months of the
year, the strong results between March to June offset the negative trend. Main countries: Italy (+51% YTD vs FY20 of -28%), the
UK (+39% vs -29% FY20), Spain (+34% vs -32% FY20), France (+29% vs -25% FY20) and Germany (+15% vs -19% FY20)
Santander Digital Consumer Bank: building on the strong foundation of Santander Consumer Finance and Openbank businesses with
the ambition of building the most innovative consumer lending business in Europe
• SCF is the leader in consumer finance in Europe: high geographic diversification and critical mass and top positions in core markets.
Focused on RoRWA optimization while maintaining strong market positions.
• Openbank is Santander’s 100% digital bank: leader among its European competitors in deposits, using an innovative and efficient
Strategy banking platform built inside Santander.
& Strategic priorities:
• Strengthening Auto and mobility leadership including leasing, subscription and online distribution
Business • Gaining market share in consumer lending solutions, both offline and e-commerce.
• Retail: increase active customers to enhance activity of digital banks while reinforcing deposits franchise.
• Cost reduction and simplification, leveraging Openbank’s platform, in order to transform the business and improve efficiency.
New lending in H1’21 +20% YoY although covid-19 lockdowns had a significant impact at the beginning of the year. The stock of credit
was flat YoY. Strong activity expected for H2.
Most of DCB’s markets were affected by the impact of the covid-19 pandemic in the first months of the year. Nevertheless, last quarter
showed a recovery in overall business activity when lockdowns in the countries finished.
NII in line with last year after absorbing activity impacts at the beginning of the year. Net fee income increased +11% vs 2020 due to new
lending increases, especially in Q2 after the easing of lockdowns (new lending+18% QoQ)
Results Costs increased 5% due to new digital investments and perimeter (mainly Sixt, TIMFIN) and fell excluding perimeter and investments
thanks to continued delivery on our efficiency programmes (organizational simplification, streamlining IT, evolving distribution model…)
LLPs strong reduction mainly due to covid-19 provisions booked in H1’20 together with a high portfolio quality and good credit risk
behaviour amid current environment: cost of credit at 0.64% (remains low for this type of business) and NPL ratio at 2.18%.
Underlying attributable profit was EUR 569 mn in H1’21 (+11% year-on-year).
(1) EU + EFTA + UK 20Concluding remarks
Digital
…doing business in a responsible and sustainable way Consumer
Bank
Environmental: Social: building a Governance: doing
supporting the more inclusive business the right
green transition society way
Helping customers go green Talented & diverse team A strong culture
>33 k electric Top Employer in 20% women in Simple, Personal, Fair
vehicles financed in May 2021 YTD 6 geographies leadership positions
Our green finance offer includes: financing of Gender diversity considered in talent succession Taking ESG criteria into account
electric vehicles, carbon compensation services in all plans to improve Women in Senior Positions metric in
countries, financing of electric chargers, solar panels, the 2020 – 2025 period when determining remuneration
green heating systems…
Financially empowering people
Going green ourselves An independent, diverse Board
>23 k people in H1’21
SEK 1,500 mn Carbon Neutral 20% Independent directors
green bond issued in own our operations Supporting society 27% women on Board
First workshop with Technical University of Munich
in the 3-year research project that will investigate >8 k people 624 scholarships Governance embedded to deliver
the future of mobility and Car Ownership and how a helped in H1’21 granted in H1’21 on ESG
greener attitude will affect car ownership and finance
21Index
1 2 3 4
Strategy and Results Concluding Appendix
business remarks
22Appendix
Digital
Balance sheet Consumer
Bank
Constant EUR million1 Variation
Jun-21 Jun-20 Amount %
Loans and advances to customers 112,738 112,607 131 0.1
Cash, central banks and credit institutions 28,445 19,723 8,722 44.2
Debt instruments 5,738 4,583 1,155 25.2
Other financial assets 41 37 5 12.6
Other asset accounts 6,481 5,326 1,155 21.7
Total assets 153,443 142,275 11,168 7.8
Customer deposits 54,041 49,717 4,324 8.7
Central banks and credit institutions 47,980 38,391 9,589 25.0
Marketable debt securities 33,740 36,571 (2,830) (7.7)
Other financial liabilities 1,455 1,692 (238) (14.1)
Other liabilities accounts 4,208 3,813 395 10.4
Total liabilities 141,424 130,183 11,241 8.6
Total equity 12,019 12,092 (73) (0.6)
Other managed customer funds 2,786 960 1,826 190.2
Mutual funds 2,149 536 1,613 300.7
Pension funds — — — —
Managed portfolios 637 424 213 50.3
(1) End period exchange rate as at Jun-21. 23Appendix
Digital
Income statement Consumer
Bank
Change
1
Constant EUR million H1'21 H1'20 Amount %
Net interest income 2,130 2,154 (24) (1.1)
Net fee income 395 356 39 11.0
Gains (losses) on financial transactions 9 (10) 19 —
Other operating income 71 17 54 325.4
Total income 2,606 2,517 88 3.5
Operating expenses (1,214) (1,153) (61) 5.3
Net operating income 1,392 1,364 27 2.0
Net loan-loss provisions (308) (533) 225 (42.2)
Other gains (losses) and provisions (76) 64 (140) —
Underlying profit before tax 1,008 895 113 12.6
Tax on profit (265) (238) (28) 11.6
Underlying profit from continuing operations 742 658 85 12.9
Net profit from discontinued operations — — — —
Underlying consolidated profit 742 658 85 12.9
Non-controlling interests (173) (146) (28) 19.1
Underlying attributable profit to the parent 569 512 57 11.1
(1) Average exchange rates as at 6M’21. 24Appendix
Digital
Quarterly income statements Consumer
Bank
1
Constant EUR million Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21
Net interest income 1,087 1,068 1,058 1,084 1,058 1,073
Net fee income 192 164 211 205 189 206
Gains (losses) on financial transactions (12) 3 7 17 8 1
Other operating income 23 (6) 43 58 51 20
Total income 1,290 1,228 1,320 1,364 1,306 1,300
Operating expenses (595) (558) (589) (601) (601) (613)
Net operating income 694 670 730 764 705 687
Net loan-loss provisions (331) (202) (224) (208) (166) (142)
Other gains (losses) and provisions 40 23 (20) 7 (31) (45)
Underlying profit before tax 404 491 486 562 507 501
Tax on profit (107) (130) (126) (134) (135) (131)
Underlying profit from continuing operations 297 361 360 428 372 370
Net profit from discontinued operations — — 0 (0) — —
Underlying consolidated profit 297 361 360 428 372 370
Non-controlling interests (63) (83) (76) (79) (80) (93)
Underlying attributable profit to the parent 234 278 284 348 292 277
(1) Average exchange rates as at 6M’21. 25Thank You. Our purpose is to help people and businesses prosper. Our culture is based on believing that everything we do should be:
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