FIXED INCOME INVESTORS PRESENTATION - It's time to build together a better future for you - Banco Santander
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Q1 2022 FIXED INCOME INVESTORS PRESENTATION It's time to build together a better future for you
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 2021. 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 2021 Annual Report on Form 20-F filed with the U.S.
Securities and Exchange Commission (the “SEC”) on 1 March 2022, as updated by the Form 6-K filed with the SEC on 8 April 2022 in order to reflect our new organizational and reporting structure, as well
as the section “Alternative performance measures” of the annex to the Banco Santander, S.A. (“Santander”) Q1 2022 Financial Report, published as Inside Information on 26 April 2022. 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 war in Ukraine or 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 crises; (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.
2
Important 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 results (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 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.
3
Index
1 2 3 4 5 6 7 8
Santander Q1’22 Santander Capital Asset Liquidity & Concluding Links,
at a Glance Summary Business Quality Funding. Remarks Appendix
Model & Ratings and Glossary
Strategy
4
Santander at a Glance
Q1’22 Highlights
Santander, a Total assets (€ bn) 1,666
leading financial Customer loans (€ bn excluding reverse repos) 998
group Customer deposits + mutual funds (€ bn; excluding repos) 1,097
Branches 9,898
Q1'22 Net operating income (pre-provision profit) (€ mn) 6,770
Simple Personal Fair Q1'22 Underlying attributable profit (€ mn) 2,543
Q1'22 Attributable profit (€ mn) 2,543
Market capitalization (€ bn; 31-03-22) 54
People (headcount) 198,204
Customers (mn) 155
Shareholders (mn) 4.0
Communities 2019-2021 (mn; financially empowered people) 7.5
5
Index
1 2 3 4 5 6 7 8
Santander Q1’22 Santander Capital Asset Liquidity & Concluding Links,
at a Glance Summary Business Quality Funding. Remarks Appendix
Model & Ratings and Glossary
Strategy
6
Q1’22 Summary
Q1’22 highlights
Growth
• We increased our customer base (+7mn YoY), digital customers (+11% YoY) and digital sales (56% of total sales vs. 50% in Q1’21)
• Commercial activity1 remained robust, up QoQ and YoY (loans +5%; deposits +5%; mutual funds +6%)
• We continued to grow revenue1, achieving solid year-on-year growth rates (NII +6% and net fee income +6%). Net operating income up to €6.8bn
Profitability
• Q1’22 attributable profit of €2,543mn (+19% vs Q1’21 underlying profit; +12% in constant euros). Including restructuring costs in Q1’21, +58% in euros
• Cost discipline and greater productivity led to an efficiency ratio of 45.0%
• Improved profitability QoQ and YoY (RoTE of 14.2% and EPS of €14.1 cents, +22% vs. Q1’21 underlying EPS)
• Outstanding TNAV performance: TNAVps of €4.29. TNAV + Cash DPS: +13% YoY
Strength
• Ongoing risk management: cost of credit at 0.77%; NPL ratio of 3.26%; loan-loss reserves of €25bn
• FL CET1 ratio of 12.05%2 with a net organic generation of 17bps in the quarter(+40bps from earnings and -23bps from dividend accrual and second share
buyback)
Our business model’s unique diversification continues to prove its resiliency
in generating growth and profit while maintaining balance sheet strength
(1) YoY changes in constant euros. In euros: loans: +8%; deposits: +8%; mutual funds: +13%; NII: +11%; net fee income: +10% 7
(2) Including the acquisition of Amherst Pierpont which completed in April 2022
Q1’22 Summary
Profit growth underpinned by our geographic and business diversification
Underlying Contribution
att. profit2 to Group’s
% change Q1’22 vs. Q1’21 (€ mn) underlying profit3
€ million Q1'22 Q1'21 Euros Constant euros
1,018
NII 8,855 7,956 11 6 Europe 34%
Net fee income 2,812 2,548 10 6 +30%
Trading and other income 638 886 -28 -31
Total revenue 12,305 11,390 8 3 North 806
27%
Operating expenses -5,535 -5,118 8 4 America +4%
Net operating income 6,770 6,272 8 2
LLPs -2,101 -1,992 5 1
Other results -498 -467 7 5 South 900 30%
Underlying PBT 4,171 3,813 9 3
America +8%
Underlying att. profit 2,543 2,138 19 12
Net capital gains and provisions¹ 0 -530 -100 -100 Digital Digital 282
Attributable profit 2,543 1,608 58 47
Consumer Consumer 9%
Bank
Bank +11%
(1) Q1'21: restructuring costs (net of tax), corresponding mainly to the UK and Portugal 8
(2) Changes in constant euros. North America change excluding Bluestem portfolio disposal
(3) Contribution as a % of operating areas, excluding the Corporate Centre
Q1’22 Summary
Positive profit trend backed by higher revenue, cost discipline and flat LLPs
Attributable profit Revenue
Constant € mn
Constant € mn
8,986
8,855 +6%
8,685
NII 8,335
8,551 YoY
+47% YoY
2,766 2,812 +6%
2,543 Net fee
2,357 income 2,655
2,706 2,689 YoY
2,275 2,194 2,245
Other 928 858 638
474 375
income
1,732
5,514
5,765
5,535 +4%
5,297 5,413
Q1'21 Q2 Q3 Q4 Q1'22 Costs YoY
Underlying profit
LLPs 2,086 2,287
2,101 +1%
+58% YoY 1,824 1
Attributable profit (current € mn) 1,524 YoY
1,608 2,067 2,174 2,275 2,543
Q1'21 Q2 Q3 Q4 Q1'22
(1) Includes overlay partial release
9
Q1’22 Summary
We continue to make structural changes to our operating model, driving
sustainable efficiencies and mitigating the effects of higher inflation
Group Cost by region
Q1’22 vs. Q1’21
In real terms1
Total costs
Q1’22 vs. Q1’21
+4.5% -3.3% Europe -2.0% -6.6%
in real terms1
North America +2.6% -3.7%
South America +15.6% +0.5%
45.0% -1.2pp
Efficiency DCB
Digital
+6.8% +3.0%
Q1’22 vs. FY’21 Improvement mainly driven by Consumer Bank
Europe (-4.4pp to 47.8%)
Note: changes in constant euros 10
(1) Excluding the impact from average inflationQ1’22 Summary
Cost of credit remained well below 1%. In Q1, LLPs normalizing after
releases in Q4’21
Loan-loss provisions Credit quality indicators
Constant € bn
Mar-21 Dec-21 Mar-22
Cost
of credit2
1.08% 0.77% 0.77%
2.3
2.1 2.1
1.8
1.5
NPL ratio 3.20% 3.16% 3.26%3
Coverage
ratio
74% 71% 69%3
Q1'21 Q2 Q3 Q41 Q1'22
(1) Includes overlay partial release 11
(2) Provisions to cover losses due to impairment of loans in the last 12 months / average customer loans and advances of the last 12 months
Considering annualized Q1'21 provisions, cost of credit would be 0.83%
(3) New definition of default (NDD) applied in Q1’22 (impact on the NPL ratio of +19bps)Q1’22 Summary
Organic generation in Q1 led to an increase in the FL CET1 ratio to >12%
Fully-loaded CET1 ratio quarterly evolution
%
+0.40
12.05
11.96 -0.23 -0.05
-0.03
Dec-21 Gross organic Shareholder Regulatory Markets Mar-22
1
Pro forma generation remuneration 2 & Models & others Pro forma 1
Q1'21 Q1'22 Diff.
1
FL CET1 ratio 11.85% 12.05% 19 bps
1
FL Total capital ratio 15.77% 16.08% 30 bps
FL Leverage ratio 4.91% 5.03% 12 bps
(1) Pro forma: Including acquisition of SC USA minority interest which closed on 31 January 2022 and the acquisition of Amherst Pierpont which completed in April 2022 12
(2) Including a 15bp charge from the second share buyback corresponding to 2021, and an 8bp charge from the cash dividend accrual, corresponding to 20% of Q1'22 profitQ1’22 Summary
Outstanding QoQ and YoY profitability. TNAVps + cash dividend: +13% YoY
Underlying RoTE Underlying EPS TNAV per share
€cents
EUR cents EUR
14.2% 14.1 4.29
13.0% 12.7% 12.4 4.12
11.6
3.84
Q1'21 FY21 Q1'22 Q1'21 Q4'21 Q1'22 Mar-21 Dec-21 Mar-22
Statutory Statutory
Note: including €4.85 cents from the cash dividend paid in November
12.2% 12.0% 14.2% 8.5 12.4 14.1 2021, TNAVps + Cash dividend up 13% YoY
Note: the averages for the Q1 RoTE denominators are calculated on the basis of 4 months from December to March and 2021 RoTE denominator is calculated on the basis of 13
13 months from December to December. For periods of less than a year, and in the event of items outside the ordinary performance of our business, the profit used to
calculate the statutory RoTE is the annualized underlying attributable profit (excluding these results), to which these results are added without annualizing themIndex
1 2 3 4 5 6 7 8
Santander Q1’22 Santander Capital Asset Liquidity & Concluding Links,
at a Glance Summary Business Quality Funding. Remarks Appendix
Model & Ratings and Glossary
Strategy
14Santander Business Model & Strategy
Santander is managed according to primary and secondary segments
One Santander (Europe, North
Primary segments
America and South America). New
operating model leveraging our
Europe North America South America Digital Consumer Bank
global scale to deliver a better
Spain UK United States Brazil Uruguay SCF customer experience, supported by
common culture and higher degrees
Portugal Poland Mexico Chile Peru
of commonality, technology being
Other Europe Argentina Colombia one
More details in Digital Consumer Bank: our vision is
Appendix: to become the largest digital
consumer bank in the world
Global businesses (SCIB and WM&I)
Secondary segments
to enhance our local scale with global
Retail Banking SCIB WM&I PagoNxt reach and collaboration
PagoNxt: innovative payments
solutions for both Santander and
Group functions and Corporate Centre activities non-Santander clients
Communication, Exec. The Corporate Centre and other
Technology Financial Strategy,
Audit Compliance Risk Universities Corporate Costs General Human
& Control / Finance Corporate Dev.&
Chairman’s functions servicing the whole Group
Marketing and Secretariat1 Resources Office &
Operations Accounting Financial Planning Responsible
Research
Banking
(1) Includes Legal, Governance, Tax and Security & Intelligence. 15Santander Business Model & Strategy
Our business model drives predictable and profitable growth
Our business model is based on three pillars
01. Scale 02. Customer focus 03. Diversification2
Local scale and leadership. Unique personal banking relationships Our geographic and business
Worldwide reach through our global strengthen customer loyalty diversification makes us more resilient
businesses and PagoNxt under adverse circumstances
Digital
Consumer Bank
1,018
#1
Europe 34%
10% European +30%
Top 3
Loans Consumer
8% Bank
Deposits
4% 12%
North 806
27%
Auto lending
2% 18%
Loans
America +4%
11%
Deposits Loans
14%
Deposits in NPS1 in 8 markets
14% Deposits 17%
South 900
Loans Loans
13% 18% 30%
Deposits
10%
Deposits
America +8%
Loans
18%
10%
Deposits Digital Digital 282
Loans Consumer Consumer 9%
18% 11% Bank
Bank +11%
Deposits Loans
11%
Deposits
(1) Internal benchmark of individual customers' satisfaction audited by Stiga / Deloitte in H2’21.
(2) Q1’22 underlying attributable profit by region, YoY growth in constant euros and % operating areas ex. Corporate Centre. North America change excluding Bluestem portfolio disposal
Market share data: as at Dec-21 and Argentina, Brazil, USA and DCB latest available. Spain includes Santander España (public criteria) + Hub Madrid + SCF España + Openbank and Other 16
Resident sectors in deposits. The UK includes London Branch. Poland: including SCF business in Poland. The US: Retail auto lending in all states where Santander Bank operates. Brazil:
deposits including debenture, LCA (agribusiness notes), LCI (real estate credit notes), financial bills (letras financeiras) and COE (certificates of structured operations).Santander Business Model & Strategy
Our geographic and business diversification both in assets …
Loans and advances to customers by area Loans and advances to customers by business
Breakdown of total gross loans excluding reverse repos, % of operating areas Mar-22 Breakdown of total gross loans excluding reverse repos, Mar-22
DCB 1
SCIB
16%
12%
South 35%
Home
America Corporates 11% mortgages
15%
59% Europe 10%
SMEs
North 14%
9%
America 19%
Other
Consumer individuals
Total gross loans excluding reverse repos: €998bn
84% of loan portfolio is Retail, 16% Wholesale
RWAs: €599bn
(1) SCIB and institutions. 17Santander Business Model & Strategy
… and in liabilities …
Customer funds by area Customer funds by business
Breakdown of total customer funds excluding repos, % of operating areas Mar-22 Breakdown of total customer funds excluding repos, Mar-22
DCB
1
SCIB
South 5% 17%
America
17%
Corporates
36% Individuals
9% demand
deposits
North 13%
America SMEs 10%
65% Europe
6%
10%
Consumer
12%
Individuals Individuals
mutual time
funds deposits
(1) SCIB and institutions. 18Santander Business Model & Strategy
… coupled with our regional organizational structure, delivers growth
and profitability…
Q1’22 Total Customer Customer Net operating Underlying
vs. Q1’21 customers loans deposits income1 att. profit1 RoTE2
(mn) (€bn) (€bn) (€mn) (€mn)
46.1 584 604 2,245 1,018 13.5%
Europe
-- +4% +5% +12% +30% +3.0 pp
North 25.1 141 119 1,535 806 24.5%
America +3% +8% +7% -4% +4% -0.4 pp
South 64.4 149 124 2,711 900 26.7%
America +11% +9% +6% +7% +8% +0.7 pp
Digital
Digital
Consumer Consumer 19.2 117 57 667 282 12.7%
Bank
Bank -- +1% +6% +3% +11% +1.5 pp
Note: YoY changes in constant euros. Loans and advances to customers excluding reverse repos. Customer deposits excluding repos 19
(1) North America excluding Bluestem portfolio disposal impact in % changes. Otherwise, net operating income -10% and underlying attributable profit 0%
(2) Adjusted RoTEs: adjusted based on Group’s deployed capital calculated as contribution of RWAs at 12%Santander Business Model & Strategy
… which is resilient throughout the cycle…
Resilient profit generation throughout the cycle
Group pre-provision profit, € bn
25.5 25.6 26.2
24.4 25.0
23.9 23.6 23.7 23.6
23.0 22.6 22.8
19.9
17.7
14.8
11.4
2006 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
20Santander Business Model & Strategy
… resulting in long-term stable and predictable growth
Predictable results with the lowest volatility among peers coupled with growth in earnings
Quarterly reported EPS volatility1, 1999-Q4’21
654% 323%
116%
102%
93%
83% 80%
43% 40% 40%
12%
US IT CH CH US FR FR US NL US
(1) Source: Bloomberg, with GAAP Criteria. Note: Standard deviation of the quarterly EPS starting from the first available data since Jan-99. 21Santander Business Model & Strategy
Moreover, we are able to generate profit efficiently, with one of the best C/I
ratios and net operating income /loans well above most European peers…
Efficiency Net operating income/Loans
Cost-to-income, Peers FY 2021, Santander Q1’22 %, European peers FY 2021, Santander Q1’22
Peer 1 45%
12 pp
Peer 1 3.7
45%
Peer 2 48%
better than 2.6
peer avg.
Peer 2 2.2
Peer 3 53%
Peer 4 56%
Peer 3 2.0
Peer 5 58%
Peer 4 1.9
Peer 6 58%
Peer 5 1.7
Peer 7 61%
Peer 6 1.2
Peer 8 65%
Peer 9 65%
Note: Peers included are: BBVA, BNP Paribas, Citibank, Credit Agricole, HSBC, ING, Itaú, Scotiabank and Unicredit. Santander calculations using publicly available data. 22Santander Business Model & Strategy
… while doing business sustainably and responsibly
Supporting the green transition…
Green finance1 AuM in sustainable funds2 Decarbonization targets
€69bn since 2019 €27bn Mar-22 0.23 tCO2e/MWh5 in 2019
€3.6bn in Q1’22
€100bn by 2025 0.18 by 2025
€120bn by 2025
€220bn by 2030
0.11 by 2030
Green products Renewable energy
Thermal coal-related power6
>€1bn in electric vehicles 8 wind farm3 agreements in Q1’22 & mining phase out
>€2bn in green buildings Alliance with Enel €7bn in 2021
in Q1’22 Acquisition of 80% WayCarbon4 0 by 2030
…whilst engaging top management with ESG goals: 20% of long-term incentives in scorecard
Note: Q1’22 data not audited
(1) Only SCIB global business
(2) AuMs classified as Article 8 and 9 funds (SFDR) from SAM, plus third-party funds and other ESG products according to EU taxonomy from Private Banking. We apply equivalent ESG
criteria to SAM's funds in Latin America
(3) In the UK, Portugal and Poland with a power of 1,570 MW
(4) In April 2022, Banco Santander completed the acquisition of 80% of WayCarbon Soluções Ambientais e Projetos de Carbono (‘WayCarbon’), a leading Brazil-based ESG consultancy firm
23
(5) Reduce emissions intensity in our power generation portfolio
(6) Refers to power generation clients with over 10% of their revenue depending on thermal coalIndex
1 2 3 4 5 6 7 8
Santander Q1’22 Santander Capital Asset Liquidity & Concluding Links,
at a Glance Summary Business Quality Funding. Remarks Appendix
Model & Ratings and Glossary
Strategy
24Capital
Disciplined capital allocation strategy to drive profitability improvement &
maximize shareholder returns…
2021 2022E
RoTE >13%
Capital
accretive
RWA growth
below loan +1% < +4% RWA
< low-single Capital generation...
growth2 RWAs loans growth digit
growth ... to maintain
FL CET1 ~12%
Risk
Risk adjusted
adjusted 1
new
new credit
credit
production
Front book
RoRWA
1.8% 2.2%
production
Maximize
Granular shareholder
profitability
% of RWAs with
RoRWA < CoE 30% ~20% returns
management
(1) 2019-21 average. 25
(2) 2021 vs. 2020 in constant EUR.Capital
…leading to even greater shareholder value creation going forward
Disciplined capital allocation will improve profitability
leading to strong shareholder value creation
…making share buybacks a
To deliver TNAVps meaningful remuneration
growth… tool while growing cash
dividend
Note: 40% target in 2022. Longer term, we aspire to increase total shareholder remuneration beyond 40%, with around 50% through share buybacks and a growing cash dividend,
while maintaining a FL CET1 of ~12%. Implementation of shareholder remuneration policy is subject to future corporate and regulatory decisions and approvals. 26Capital
Santander’s capital levels, both phased-in and fully loaded, exceed
minimum regulatory requirements
SREP capital requirements and MDA* Assumed capital requirements (fully-loaded)**
Mar-22 Mar-22
16.39%
2.54% T2 16.08%
13.01% +338 bps >15%
AT1
+321 bps 1.52% 13.01% +306 bps 2.51%
2.00% T2
T2 2.38%
1.52%
T2 +293
+319bps
bps 1.50% AT1
AT1 1.78%
+347 bps 2.38%
G-SIB buffer 1.00% AT1 1.78% +319
+319bps
bps
CCyB, G-SIB buffer 1.00%
CCoB 2.50% 1
0.01% 12.33% CET1 CCyB,
2.50%
Pillar 2 R 0.84%
CCoB 0.01% 12.05% 11-12% CET1
0.84%
Pillar 2 R
4.50%
Pillar 1 4.50%
Pillar 1
Regulatory Requirement Group ratios Mar-22 Assumed regulatory Group ratios Mar-22 Medium-term
2022 requirement 2022 target ratios
Following regulatory changes in response to the covid-19 crisis, AT1 and T2 ratios are planned to be above 1.5% and 2% of RWAs
the minimum CET1 to be maintained by the Group is 8.85% respectively
(was 9.69% pre-changes)
As of Mar-22, the distance to the MDA is 321 bps2 and the CET1
management buffer is 347 bps
* The phased-in ratio includes the transitory treatment of IFRS 9, calculated in accordance with article 473 bis of the Capital Requirements Regulation (CRR2) and subsequent modifications
introduced by Regulation 2020/873 of the European Union. Total phased-in capital ratios include the transitory treatment according to chapter 4, title 1, part 10 of the CRR2.
** Fully-loaded CRR and fully-loaded IFRS 9. Pro forma including the acquisition of Amherst Pierpont which completed in April 2022
(1) Countercyclical buffer as of Dec-21. 27
(2) MDA trigger = 3.47% - 0.26% = 3.21% (26 bps of AT1 shortfall is covered with CET1).Capital
Strong fundamentals for AT1 bond holders
Santander Group’s CET1 levels are well above the minimum loss absorption trigger of 5.125%: €43bn
Distance1to
trigger The first line of defense is the Group’s strong pre-provision profitability providing a high capacity to absorb provisions
during the crisis and should continue to underpin the Group’s earnings generation capacity
As of Mar-22, the distance to the MDA is 3.21%2
MDA
Targeting a comfortable management buffer, in line with Santander’s business model and predictable results
Santander Parent Bank has c. €55bn in Available Distributable Items, best-in-class.
This amount of ADI represents >110 times the full Parent AT1 cost budgeted for 2022
ADIs
Santander has never been prohibited from making a Tier 1 payment or dividend due to insufficient ADIs. Santander has
never cancelled the payment of coupons of any of its Tier 1 securities
(1) CET1 level below which AT1 capital instruments must either convert into ordinary shares or have their principal about written down
(2) MDA trigger = 3.47% - 0.26% = 3.21% (26 bps of AT1 shortfall is covered with CET1). 28Capital
AT1 issuances distributed by call date
AT1 issuances outstanding at Mar-22
Nominal Next call Reset
EUR mn Currency EUR Coupon Structure date Spread
Banco Santander S.A. EUR 1,000 5.25% PNC6 29-Sep-23 499.9 bps
Banco Santander S.A. EUR 1,500 4.75% PNC7 19-Mar-25 409.7 bps
Banco Santander S.A. EUR 1,500 4.38% PNC6 14-Jan-26 453.4 bps
Banco Santander S.A. USD 1,080 7.50% PNC5 08-Feb-24 498.9 bps
Banco Santander S.A. USD 900 4.75% PNC6 12-May-27 375.3 bps
Banco Santander S.A. EUR 750 4.13% PNC7 12-May-28 431.1 bps
Banco Santander S.A. EUR 1,000 3.63% PNC8 21-Sep-29 376 bps
Call date
1,500 1,500
1,000 1,080 1,000
900
750
-
2022 2023 2024 2025 2026 2027 2028 2029 29Capital
FX hedging policy on capital ratio and P&L
Stable capital ratio hedge Our P&L Policy
Hedged
Exposure Group Strategic management of the exposure to exchange
CET1
12.33%1
rates on equity and dynamic on the countervalue of
the units’ annual results in euros.
Mitigate impact of FX volatility.
Corporate Centre assumes all hedging costs.
Managed to mitigate FX volatility in our CET1 ratio
Based on Group regulatory capital and RWAs by currency
(1) Phased-in ratio 30Capital
Interest rate risk hedging
Mostly positive interest rate sensitivity ALCO portfolios reflect our geographic diversification
Net interest income sensitivity to a +/-100 bp parallel shift Distribution of ALCO portfolios by country
€ mn, Feb-22 %, Mar-22
+100 bps -100 bps Other SCF,
S.Am., 5% 6% Spain,
Chile,
+590 -593 4%
1
UK,
10%
5%
2
+242 -330 Poland,
Brazil, €96bn 15%
19%
o/w HTC&S €66bn
+174 -159 Portugal,
3
2%
USA,
Mexico, 17%
-89 +89 18%
(1) Parent bank.
(2) Ring-fenced bank. 31
(3) SBNA. SC USA has positive sensitivity under a -100 bp shift scenario.Index
1 2 3 4 5 6 7 8
Santander Q1’22 Santander Capital Asset Liquidity & Concluding Links,
at a Glance Summary Business Quality Funding. Remarks Appendix
Model & Ratings and Glossary
Strategy
32Asset Quality
Credit quality remains solid…
Credit quality ratios
Q1'21 Q4'21 Q1'22 Q1'21 Q4'21 Q1'22
p 10 bps QoQ Cost of 0 bps QoQ
NPL ratio 3.20% 3.16% 3.26% 1.08% 0.77% 0.77%
q
p 6 bps YoY credit3 q 31 bps YoY
4.08% 1.28%
3.93%
1.18%
3.73% 1.07% 1.08%
1.00% 1.00%
0.94%
0.90%
3.32%
3.21% 3.22%
3.26% 0.77% 0.77%
3.20% 3.18% 3.16%
1
2016 2017 1 2018 2019 2020 Q1'21 Q2'21 Q3'21 Q4'21 Q1'222 2016 2017 2018 2019 2020 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22
(1) Acquisition of Banco Popular in 2017
(2) Including +19bp impact from the New Definition of Default application 33
(3) Provisions to cover losses due to impairment of loans in the last 12 months / average customer loans and advances of the last 12 months.Asset Quality
… at the Group and country level
NPL ratios by country Cost of credit1 by country
% Q1 2021 Q4 2021 Q1 2022 % Q1 2021 Q4 2021 Q1 2022
Spain 4.98 4.72 4.47 Spain 0.79 0.92 0.88
UK 1.35 1.43 1.42 UK 0.21 -0.09 -0.08
Portugal 3.84 3.44 3.42 Portugal 0.38 0.09 0.03
Poland 4.82 3.61 3.50 Poland 1.02 0.67 0.65
US 2.11 2.33 2.75 USA 2.12 0.43 0.49
Mexico 3.21 2.73 3.09 Mexico 3.00 2.44 2.22
Brazil 4.42 4.88 5.68 Brazil 3.79 3.73 3.94
Chile 4.74 4.43 4.70 Chile 1.33 0.85 0.83
Argentina 2.32 3.61 3.21 Argentina 4.55 3.01 3.31
DCB 2.23 2.13 2.27 DCB 0.69 0.46 0.44
Group 3.20% 3.16% 3.26% Group 1.08% 0.77% 0.77%
(1) Provisions to cover losses due to impairment of loans in the last 12 months / average customer loans and advances of the last 12 months. 34Index
1 2 3 4 5 6 7 8
Santander Q1’22 Santander Capital Asset Liquidity & Concluding Links,
at a Glance Summary Business Quality Funding. Remarks Appendix
Model & Ratings and Glossary
Strategy
35Liquidity and Funding
The Group’s business model combines local knowledge with global best practices
through legally, financially and operationally autonomous subsidiaries…
Legal autonomy structure
Dec-21
Santander S.A.1
Santander
Consumer Santander
Finance2 Holdings
USA
Banco
Santander Santander
UK Group Brasil
Santander Grupo
Holdings
Bank Financiero
Banco Polska Mexico Banco
Santander Santander
Totta SGPS, Chile
SA Banco
Santander
Argentina
Legal autonomy: There are no legal commitments that entail financial support
Financial autonomy: Financial interconnections are limited and at market prices
Operational autonomy: Shared services are limited and carried out through autonomous factories. Access to FMIs through other Group
entities is very limited
(1) Santander Perú, Santander Uruguay and Santander Colombia do not appear on the graph due to their size. Waiting for the SRB to authorize these 3 companies to have their own
resolution group. 36
(2) Spain Resolution Group headed by Banco Santander, S.A. Includes, among others, SCF.Liquidity and Funding
… divided into different resolution groups that can be resolved separately
though multiple entry points
MPE resolution strategy
Dec-21, € bn
Banking Union European Union 3rd Countries
Spain1 Poland Brazil Mexico
Resolution Group PE PE PE PE
PE Point of Entry Portugal UK Chile Argentina
PE PE PE PE
USA
PE
Size of Resolution Groups (Total assets by geography)
155 165
778 Brazil USA
410
56 53 73 67 16
Spain1 Portugal United Kingdom Poland Mexico Chile Argentina
We have defined the Resolution Groups (RGs) mirroring the model of autonomous financial groups so that all entities have been assigned
to one RG
Each RG comprises the entity identified as the entry point in resolution and the entities that belong to it
(1) Spain Resolution Group headed by Banco Santander, S.A. Includes, among others, SCF. Banco Santander has requested the SRB that Colombia, Peru and Colombia have their own
Resolution Group (currently the are included in the Spain RG). Waiting for authorization. 37Liquidity and Funding
Santander follows an autonomous capital and liquidity model
Capital ratios by country
Dec-21, %, local figures (phased-in)
US
UK
22.66
20.73 21.61
19.27
18.84
15.88
Portugal
29.29
Brazil 28.87
Poland
14.91
26.19 18.58
Mexico 12.81
16.63
21.56 11.64
17.99 Santander 16.63
S.A.
14.84
22.22
Argentina 19.18
Chile Total
19.39
15.86 16.90 T1
17.03
12.22
16.77 CET1
9.60
Note: SCF: Total Capital Ratio: 15.95%; T1: 14.51% and CET 1: 12.58% 38Liquidity and Funding
Santander’s liquidity management is based on the following principles
Decentralized liquidity model
Needs derived from medium- and long-term activity must be financed by medium- and long-term instruments
High contribution from customer deposits, due to the retail nature of the balance sheet
Diversification of wholesale funding sources by instruments/investors, markets/currencies and maturities
Limited recourse to wholesale short-term funding
Availability of sufficient liquidity reserves, including the discount window / standing facility in central banks to be
used in adverse situations
Compliance with regulatory liquidity requirements both at Group and subsidiary level, as a new conditioning
management factor
39Liquidity and Funding
Stock of issuances shows diversification across instruments and entities
Debt outstanding by type
€ bn and %, Mar-22
Includes the issuance of 3 Green Bonds in line with the
Group’s ESG strategy and Responsible Banking Agenda:
Product Nom. EUR Maturity Issuance spread
Oct-19 Senior EUR 1 bn 7 MS +65 bps
Senior, 54.1, Senior non- Jun-20 SNP EUR 1 bn 7 MS +140 bps
30% preferred,
Jun-21 SNP EUR 1 bn 8NC7 MS +78 bps
52.5, 30%
Banco Santander, S.A. covered bonds (cédulas hipotecarias)
80.5
Collateralization rate:
Preference shares, 15.7 392%
50.5
10.2, 6%
20.5
Max issuance
o/w In market
Covered 64.8 capacity: €52bn
Sub debt, 17.5, eligible
bonds, 41.9, 30.0 Retained
10% Cover pool LTV: 46%
24%
Total Cover Pool Total issued
Note: preference shares also includes other AT1 instruments. 40Liquidity and Funding
Conservative and decentralized liquidity and funding model
€11bn1 issued in public markets in Q1’22 Very manageable maturity profile
€ bn, Mar-22, Average exchange rates € bn, Mar-22 16.4
Covered 5.1
7.8
5.6
3.4 3.7
5.3 Bonds
0.9
3.9 13.4
11.2 11.3
1.2
7.4
0.9 6.3
Senior 4.5
1.9
1.5 22.4
3.1
1.8 1.5 10.1
0.0 0.1 Senior Non- 6.7 7.1
4.3
Preferred 1.8
Covered bonds Senior Senior non- Preference Sub debt
20.7
preferred shares
Other 0.1 0.7 -
3.7 2.5
Other includes issuances in Brazil and Mexico
2022 2023 2024 2025 2026 >2026
Spain2 UK DCB Chile USA Other
(1) Data includes public issuances from all units with period-average exchange rates. Excludes securitisations. 41
(2) Includes Banco Santander, S.A. and Santander International Products PLC.
Note: preference shares also includes other AT1 instruments.Liquidity and Funding
YTD issuances against 2022 funding plan
Execution of 2022 funding plan
€ bn, Mar-22
Hybrids SNP + Senior Covered Bonds TOTAL
Plan Issued Plan Issued Plan Issued Plan Issued
1 2
Banco Santander, S.A. 3 - 3.5 1.8 9 - 10 6.5 - - 12 - 13.5 8.3
SCF - 0.0 5-6 1.2 0 - 0.5 - 5 - 6.5 1.2
UK - 0.0 3-4 1.5 0.5 - 0.75 1.8 3.5 - 4.75 3.3
SHUSA - 0.0 2 - 2.5 0.9 - - 2 - 2.5 0.9
1 2
TOTAL 3 - 3.5 1.8 19 - 22.5 10.2 0.5 - 1.25 1.8 22.5 - 27.25 13.8
The Financial Plan is mainly focused on covering TLAC/MREL requirements to:
Banco Santander, continue building up TLAC/MREL buffers.
S.A.’s 2022 funding
plan contemplates pre-finance senior non-preferred / senior preferred transactions which lose TLAC/MREL eligibility due to
the following: entering in theLiquidity and Funding
TLAC/MREL for the Resolution Group headed by Banco Santander, S.A.
TLAC Mar-22(e) MREL Mar-22(e)
% % and € bn
132.0
25.4% 35.5% 14.8 Senior
17.1%
Req. 29.85%2 SNP
Req. 18% + 10.2% + CBR 2.76%3
26.1
CBR 3.51% 2.0 Sub debt
Req. 13.82% 11.3 T2
7.9 AT1
Req.
6.75%
69.9 CET1
% RWA1 % LRE1 % RWA1 % LRE1 MREL
Instruments
Distance
€11bn €25bn €11bn €25bn
to M-MDA
Note: Figures applying the IFRS 9 transitional arrangements
(1) TLAC RWAs are €289.5bn and leverage exposure is €718.6bn. MREL RWAs are €372.3bn and leverage exposure is €772.4bn
43
(2) MREL Requirement based on RWAs from Jan-24: 31.89% + Combined Buffer Requirement (CBR)
(3) CBR for MREL is applied to the RWAs post-MPE Add-onLiquidity and Funding
Well-funded, diversified, prudent and highly liquid balance sheet (large %
contribution from customer deposits), reflected in solid liquidity ratios
Liquidity Balance Sheet
€ bn, Mar-22
Liquidity Coverage Net Stable Funding
1,341 1,341
Ratio (LCR) Ratio (NSFR)
1
Mar-22 Dec-21 Dec-21
Loans and Customer
advances to deposits
1,011 958 Spain2 141% 151% 118%
customers
UK2 176% 168% 138%
Securitizations and others Portugal 138% 138% 124%
49
Fixed assets & other 88 M/LT debt issuances
176
Financial assets Equity and other liabilities Poland 171% 197% 156%
241 135
23 ST Funding
US 142% 150% 128%
Assets Liabilities
Mexico 168% 184% 134%
HQLAs3
Brazil 154% 141% 116%
€ bn, Mar-22 HQLAs Level 1 277.1 Chile 139% 148% 124%
Argentina 242% 258% 180%
HQLAs Level 2 14.1
SCF 302% 319% 115%
o/w Level 2A 3.8
Group 157% 163% 126%
o/w Level 2B 10.2
Note: Liquidity balance sheet for management purposes (net of trading derivatives and interbank balances)
(1) Provisional data
(2) Spain: Parent bank, UK: Ring-fenced bank 44
(3) 12 month average, provisional dataLiquidity and Funding
The main metrics show the strength and stability of the Group’s liquidity
position
Evolution of key liquidity metrics LTD and MLT funding metrics by geography
Mar-22
(Deposits + M/LT
1
2018 2019 2020 2021 Mar-22 LTD Ratio funding) / Loans
3
1 Spain 85% 127%
Loans / net assets 76% 77% 76% 75% 75%
UK 111% 104%
1
Loan-to-deposit ratio (LTD) 113% 114% 108% 106% 106% Portugal 91% 117%
Poland 79% 128%
Customer deposits and medium- and long-
1 114% 113% 116% 117% 117% USA 110% 120%
term funding / loans
Mexico 92% 120%
Short-term wholesale funding / net Brazil 99% 120%
2% 3% 2% 2% 2%
liabilities Chile 134% 95%
Argentina 55% 181%
Structural liquidity surplus / net liabilities 13% 13% 15% 16% 16%
DCB 201% 75%
2 GROUP 106% 117%
Encumbrance 25% 24% 27% 26% 26%
(1) Loans and advances to customers
(2) Latest data Dec-21 45
(3) Spain public management criteriaLiquidity and Funding
Banco Santander S.A. ratings
Moody's S&P Fitch
Direction
Date last Direction Direction Date last
Rating Rating Date last change Rating last
change last change last change change
change
Covered Bonds Aa1 03/12/2019 - - - - AAu 28/01/2022 ↑
Senior Debt (P)A2 17/04/2018 ↑ A+ 16/12/2021 ↑ A 17/07/2018 ↑
Senior Non-preferred Baa1 29/10/2021 Initial A- 27/10/2021 Initial A- 01/11/2021 Initial
Subordinated (P)Baa2 04/03/2014 ↑ BBB+ 06/04/2018 ↑ BBB 27/03/2020 ↓
AT1 Ba1 20/04/2017 ↑ - - - BB+ 27/03/2020 ↑
Short Term Debt P-1 17/04/2018 ↑ A-1 06/04/2018 ↑ F2 17/07/2018 ↓
For more information on the Group’s ratings see the Links page in the Appendix 46Liquidity and Funding
Santander Parent & Subsidiaries’ Senior Debt Ratings
Moody's S&P Fitch
Direction
Date last Direction Date last Date last Direction
Rating Outlook Rating last Outlook Rating Outlook
change last change change change last change
change
Group A2 17/04/2018 ↑ STABLE A+ 16/12/2021 ↑ STABLE A- 29/05/2014 ↑ STABLE
San UK PLC A1 20/10/2020 ↑ STABLE A 09/06/2015 ↑ STABLE A+ 03/01/2019 ↑ STABLE
San UK Group Holding PLC (P)Baa1 16/09/2015 ↓ STABLE BBB 10/04/2015 ↑ STABLE A 20/12/2019 ↑ STABLE
Santander Consumer Finance SA A2 17/04/2018 - STABLE A 16/12/2021 - STABLE A 28/10/2019 - STABLE
Banco Santander Totta SA Baa2 08/09/2021 ↑ STABLE BBB 18/03/2019 ↑ STABLE BBB+ 21/12/2017 ↑ STABLE
Santander Holding US Baa3 18/10/2016 ↓ STABLE BBB+ 06/04/2018 ↑ STABLE BBB+ 17/11/2017 ↑ STABLE
Banco Santander Mexico Baa1 22/04/2020 ↓ STABLE - - - - BBB+ 13/06/2012 ↓ STABLE
Banco Santander Chile A1 27/07/2018 ↓ NEG A- 25/03/2021 ↓ STABLE - - - -
Santander Bank Polska A3 03/06/2019 ↑ STABLE - - - - BBB+ 02/06/2014 ↑ STABLE
Banco Santander Brasil Ba1 25/02/2016 ↓ STABLE BB- 12/01/2018 ↓ STABLE - - -
Kingdom of Spain* Baa1 18/09/2020 ↑ STABLE Au 20/09/2019 ↑ STABLE A- 19/01/2018 ↑ STABLE
Note: Santander México decided to withdraw the S&P ratings
For more information on the Group’s ratings see the Links page in the Appendix 47Index
1 2 3 4 5 6 7 8
Santander Q1’22 Santander Capital Asset Liquidity & Concluding Links,
at a Glance Summary Business Quality Funding. Remarks Appendix
Model & Ratings and Glossary
Strategy
48Concluding Remarks
Concluding Remarks
The Group’s stable capital generation has been supported by strong pre-provision profits providing Santander with a
high capacity to absorb provisions
Strong capital levels in line with Santander’s business model based on geographic diversification, solid market
positions in areas where it operates and independent subsidiary model in terms of capital and liquidity
The Group is well above the regulatory capital requirement with significant payment capacity from available
distributable items, while maintaining comfortable margins to conversion and MDA triggers
According to March 2022 data, the Santander S.A. Resolution Group complies with the MREL and subordination
requirements, TLAC and Group capital buffers
Comfortable liquidity position reinforced further: compliance with regulatory liquidity requirements established at
Group and subsidiary levels ahead of schedule, with high availability of liquidity reserves
49Index
1 2 3 4 5 6 7 8
Santander Q1’22 Santander Capital Asset Liquidity & Concluding Links,
at a Glance Summary Business Quality Funding. Remarks Appendix
Model & Ratings and Glossary
Strategy
50Links, Appendix and Glossary
Links to Grupo Santander public materials
For additional information on the Group, please click on the images, icons or flags below
Q1’22 financial results Other information
Financial report Earnings presentation Series Shareholders report 2021 Digital Annual review
(Excel) (interactive)
2021 Annual report
Country presentations Press release Institutional
Presentation
UK
Ratings
Poland
USA
Portugal
CEO video Pilar 3
Mexico Spain (3 minutes) Overview of our Corporate
Brazil
Digital
Consumer
Governance presentation
Bank
Chile
Argentina
51
www.santander.com Follow us onLinks, Appendix and Glossary
EUROPE
'Accelerating our business transformation in One Europe to achieve
superior growth with a more efficient operating model'
Q1’22 Highlights
Strategic priorities
Branches 3,217
Employees 60,943
▪ Grow our business by better serving our customers through regional
Total customers (mn) 46.1 simplification and an improved value proposition
Digital customers (mn) 16.6
▪ Redefining customer interaction, enhancing our digital capabilities to offer
Customer loans (€ bn) 584 comprehensive experiences (such as OneApp)
Customer funds (€ bn) 706
Underlying attributable profit (€ mn) 1,018 ▪ Create a common operating model that embeds technology into our business,
leveraging our scale in the region
RoTE¹ 13.5%
(1) Adjusted RoTE: adjusted based on Group’s deployed capital calculated as contribution of RWAs at 12%. Using tangible equity, RoTE is 9.7% 52
Customer loans: gross loans excluding reverse repos. Customer funds: customer deposits excluding repos + marketed mutual funds
More information at https://www.santander.com/en/about-us/where-we-are/europeLinks, Appendix and Glossary
NORTH AMERICA
'We provide a full range of financial services with particular
focus on Retail, Private and Corporate Banking'
Q1’22 Highlights
Strategic priorities
Branches 1,859
Employees 43,874 ▪ Strengthen One Santander in North America by unifying a common and regional
approach to forge future growth within the region
Total customers (mn) 25.1
▪ Boost customer attraction and retention, while broadening our tailored products
Digital customers (mn) 6.9
and services proposition for a more straightforward customer experience
Customer loans (€ bn) 141
▪ Leverage our regional capabilities and sharing best practices to optimize expenses
Customer funds (€ bn) 146
and improve profitability
Underlying attributable profit (€ mn) 806
▪ Support the development of inclusive and sustainable societies by offering ESG
RoTE¹ 24.5% oriented products
(1) Adjusted RoTE: adjusted based on Group’s deployed capital calculated as contribution of RWAs at 12%. Using tangible equity, RoTE is 12.5% 53
Customer loans: gross loans excluding reverse repos. Customer funds: customer deposits excluding repos + marketed mutual funds
More information at https://www.santander.com/en/about-us/where-we-are/north-americaLinks, Appendix and Glossary
SOUTH AMERICA
'We remain focused on expanding, sharing best practices
from each country and delivering profitable growth'
Q1’22 Highlights
Strategic priorities
Branches 4,451
▪ Strengthen connectivity and share best practices across countries, capturing new
Employees 75,784 business opportunities
Total customers (mn) 64.4
▪ Focus on delivering profitable growth, increasing loyalty and customer attraction,
Digital customers (mn) 24.9 as well as controlling risks and costs
Customer loans (€ bn) 149 ▪ Make headway in the development of joint initiatives between SCIB and corporates
Customer funds (€ bn) 184 ▪ In payment methods, focus on e-commerce strategies and on the business of
instant domestic and international transfers
Underlying attributable profit (€ mn) 900
▪ Continue to promote inclusive and sustainable businesses, such as micro-credit
RoTE¹ 26.7% programmes, and further developed ESG initiatives
(1) Adjusted RoTE: adjusted based on Group’s deployed capital calculated as contribution of RWAs at 12%. Using tangible equity, RoTE is 19.8% 54
Customer loans: gross loans excluding reverse repos. Customer funds: customer deposits excluding repos + marketed mutual funds
More information at https://www.santander.com/en/about-us/where-we-are/south-americaLinks, Appendix and Glossary
Digital Consumer Bank
'Europe’s consumer finance leader: solid business model,
geographic diversification and leading market shares in
auto/mobility finance and in personal finance/e-commerce'
Q1’22 Highlights
Strategic priorities
Branches 371
▪ To become the largest digital consumer bank leveraging SCF's footprint, profiting from
Employees 15,856 Openbank's technology and reinforcing our leadership with strategic alliances
Active customers (mn) 19.2 ▪ Auto: strengthening auto financing leadership by reinforcing mobility solutions with
focus on leasing and subscription
Points of sale (k) >130
▪ Consumer (non-auto): gaining market share in consumer lending, with focus on
Customer loans (€ bn) 117 e-commerce checkout lending and buy now, pay later (BNPL)
Customer funds (€ bn) 59 ▪ Simplification for efficiency: maintaining high speed digitalization in order to
Underlying attributable profit (€ mn) 282
transform the business and improve efficiency
▪ ESG: enhancing green finance propositions (fully electric vehicles, electric chargers,
RoTE¹ 12.7%
solar panels, etc.) in both auto and consumer loans
(1) Adjusted RoTE: adjusted based on Group’s deployed capital calculated as contribution of RWAs at 12%. Using tangible equity, RoTE is 12.6% 55
Customer loans: gross loans excluding reverse repos. Customer funds: customer deposits excluding repos + marketed mutual funds
More information at https://www.santander.com/en/about-us/where-we-are/digital-consumer-bankAppendix,
Links, Appendix
Links and
and Glossary
Glossary
Santander Corporate & Investment Banking
'Santander CIB supports corporate and institutional customers,
offering tailored services and value-added wholesale products suited
to their complexity and sophistication'
Q1’22 Highlights Strategic priorities
Total income (€ mn) 1,763
▪ Continue the business transformation to partner with our clients as strategic advisors, strengthening our
Collaboration revenue +33% YoY value-added services, with an increased focus on ESG and Digital solutions
RoTE 24.8% ▪ In Europe, our aim is to become one of the relevant European CIB players by strengthening our advisory
capabilities leveraging a pan-European platform to better serve our global clients' needs
Underlying attributable profit (€ mn) 759
▪ In South America, our ambition is to become the top CIB player in most countries and products,
consolidating our leadership position evolving from multi-country to pan-regional
Total income breakdown by business Revenue YoY
growth by region
▪ In the US, our aim is to up-tier our CIB franchise to compete on a level playing field. Focus on the Amherst
Pierpont Securities (APS) integration as a step to deliver on our growth aspirations
Other
-4%
Leaders in League Tables Q1’22 Recent Awards
4%
Global
Transaction Top 3
Banking
Global
32%
Markets
38% +11% Structured Finance Debt Capital Markets
Global Debt
Financing +17%
26% Green Global Source: Dealogic
More information at https://www.santander.com/en/about-us/where-we-are/santander-corporate---investment-banking 56Links, Appendix and Glossary
Wealth Management & Insurance
‘We strive to become the best responsible wealth and insurance manager in
Europe and the Americas'
Q1’22 Highlights Strategic priorities
Total assets under management1 (€ bn) 401 ▪ Continue to build our global platform
Total fees generated as % of the Group’s total fees2 o Expand and develop our product and service proposition
30%
o Deploy the best digital tools
RoTE 55.3% ▪ Renew or improve our top 3 position as Best Global Private Bank according to
Euromoney (clients up to $250mn)
Underlying attributable profit (€ mn) 245
▪ Continue to be the preferred funds partner for our retail network
Total contribution to Group's profit3 (€ mn) 603 o Complete the creation of the global hubs
o Expand the One Investments model and methodologies
Total contribution to Group's profit3 +14% YoY o Work to complete the implementation of our digital funds distribution
platforms
Private Banking customers (k) >220
▪ Optimize our customer service by completing our digital proposition using
Private Banking collaboration volume +27% YoY
customer data
Private Banking net new money (€ bn) 2.8 ▪ Manage our portfolio to extend policy life
▪ Increase customer base penetration
Santander Asset Management net sales (€ bn) -1.0
ESG transversal across our businesses: offer sustainable investment management in our private banking
Insurance Gross written premiums +2% YoY platform, expand our ESG range to help reach our commitment of €100bn AuM by 2025, work towards
our Net Zero commitments and create a sustainable insurance value proposition.
(1) Total assets marketed and/or managed. Private Banking + SAM excluding AuM of Private Banking customers managed by SAM 57
(2) Including fees generated by asset management and insurance transferred to the commercial network
(3) Profit after tax + net fee income generated by this business and excluding insurance one-offs in 2021. Otherwise, +7%
More information at https://www.santander.com/en/about-us/where-we-are/wealth-management-insuranceLinks, Appendix and Glossary
'Innovative payments solutions for both Santander and non-Santander clients'
Q1’22 Highlights
PagoNxt revenue €162 mn; +122%
We are a world leading payments fintech.
Merchant Acquiring A one-stop shop providing payment solutions to merchants, SMEs & corporates
Santander banks with Getnet 6 and consumers
Active merchants (mn) 1.24; +7%
We are accelerating commerce for merchants and their connected ecosystem of
Total payments volume (EUR bn) 34.1; +40% customers and business partners, delivered through:
International Trade ▼ ▼ ▼ ▼
The stronghold Connected Cloud-native, data- Santander
Santander banks with One Trade 8 serving merchants adjacencies to driven, global lineage and
through a digital deliver value to payments platforms “road-tested”
One Trade active customers (k) c. 8 commerce businesses and capabilities
proposition and consumers
Ebury active customers (k) >15 unique growth
footprint
Note: YoY changes. Revenue and TPV in constant euros 58
More information at https://www.santander.com/en/about-us/where-we-are/PagoNxtLinks, Appendix and Glossary
Santander’s Responsible Banking goals: All ESG commitments for 2021
achieved. Future commitments include decarbonization targets
2018 2019 2020 2021 Q1’22 Target
Women in senior positions 20% 22.7% 23.7% 26.3% 30% by 2025
Equal Pay Gap 3% 2% 1.5% 1.0% ~0% by 2025
People financially empowered (cumulative) 2.0mn 4.9mn 7.5mn 10mn by 2025
120bn by 2025
Green Finance raised and facilitated (€ cumulative) 19bn 33.8bn 65.7bn 69.3bn
220bn by 2030
Electricity from renewable sources 43% 50% 57% 75% 100% by 2025
New Thermal coal-related power & mining phase out (€) 7bn 0 by 2030
New Reduce emission intensity in power generation portfolio 0.23 tCO2e/MWh
0.18 tCO2e/MWh by 2025
0.11 tCO2e/MWh by 2030
New Sustainable investment (€bn AuM in sustainable funds) 27bn 27bn 100bn by 2025
From…To Cumulative target
Note: Q1’22 data not audited 59You can also read
