Banco Santander, S.a. · BME:SAN
Banco Santander — H1 2022 Earnings Presentation
113 slides from Banco Santander's earnings presentation, Jul 28, 2022
Slide 1: Form 6-K Report of Foreign Issuer
FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of July, 2022 Commission File Number: 001-12518 Banco Santander, S.A. (Exact name of registrant as specified in its chart
Slide 2: Table of Contents
BANCO SANTANDER, S.A. ________________________ TABLE OF CONTENTS Item 1. January - June 2022 Earnings presentation
Slide 3: Earnings Presentation H1'22
Earnings Presentation — H1’22 28 July 2022
Slide 4: Important information: Non-IFRS and alternative performance measures
2 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 (“AP
Slide 5: Important information: forward-looking statements
3 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 statemen
Slide 6: Index
4 Index 1 Appendix 3 Group and Business areas review Final remarks 2 4 H1’22 Highlights
Slide 7: Executing our strategy to drive growth, profitability and strength
5 We are executing our strategy to drive greater growth, profitability and strength Growth Profitability Strength Total customers Digital customers Digital sales / total Loans1 Deposits1 NII + fees1 Profit Efficiency ratio RoTE CoR FL CET1 +5% +10% +4pp +6% +5% +7% EPS €4,894mn 45.5% 13.7% +38% TNAV
Slide 8: Steady customer growth and volume increases in all products
6 Steady customer growth and commercial strategy reflected in volumes increases in all products and segments €718bn €197bn Demand deposits Time deposits Note: changes in constant euros. • Loan portfolio well diversified by segment: roughly 1/3 individual mortgages; 1/3 consumer; 1/3 companies • QoQ
Slide 9: Continued profit momentum, maintaining main P&L trends
7(1) Q1'21: restructuring costs (net of tax), corresponding mainly to the UK and Portugal. (2) Contribution as a % of operating areas, excluding the Corporate Centre. Continued profit momentum, maintaining main P&L trends: top line growth, greater sustainable efficiencies and LLP normalization € mil
Slide 10: Solid growth supported by all regions and businesses
8 The Group’s solid customer, volume and profit growth was supported by all our regions and businesses Underlying att. profit (€mn) Net operating income (€mn) Europe South America North America H1’22 vs. H1’21 RoTE1 Customer deposits (€bn) Customer loans (€bn) Digital Consumer Bank Total customers (
Slide 11: Positive performance in key metrics
9 Positive performance in key metrics … Note: FY’21 underlying RoTE of 12.7%. • Best-in-class efficiency, supported by higher revenue and ongoing cost management • Our transformation plan continues to progress towards a more integrated and digital operating model • RoTE improved 1.7pp vs. FY’21. Abo
Slide 12: Delivering shareholder value
10 … while delivering shareholder value (1) Including €4.85 cents from the cash dividend paid in Nov-21 and €5.15 cents paid in May-22. (2) The implementation of the shareholder remuneration policy is subject to future corporate and regulatory decisions and approvals. 3.98 4.24 Jun-21 Jun-22 € TNAV
Slide 13: Continued organic generation, CET1 ratio above 12%
11 Continued organic generation, maintaining the CET1 ratio above 12% (1) Data published in Q1’22, which included the acquisition of Amherst Pierpont (completed in April 2022). (2) Cash dividend accrual corresponding to 20% of Q2'22 profit. The implementation of the shareholder remuneration policy i
Slide 14: Supporting the green transition and financial inclusion
12 Supporting the green transition of our customers, committed to our climate change goals and financial inclusion Note: H1’22 data not audited. (1) More information in our Climate Finance Report 2021–June 2022. (2) Refers to power generation clients with over 10% of their revenue depending on therm
Slide 15: Index
13 Index 1 Appendix 3 Group and Business areas review Final remarks 2 4 H1’22 Highlights
Slide 16: Main P&L trends in a quarter impacted by regulatory charges
14(1) Single Resolution Fund (SRF) and, in Poland, Institutional Protection Scheme (IPS). (2) Q1'21: restructuring costs (net of tax), corresponding mainly to the UK and Portugal. We maintained the main P&L trends in a quarter impacted by regulatory charges1 1,608 2,067 2,174 2,275 2,543 2,351 2,138
Slide 17: Revenue up boosted by NII and fees
15 17.2 18.4 5.5 5.9 1.4 0.9 24.1 25.1 H1'21 H1'22 Revenue up boosted by NII and fees, partly offset by lower trading gains and other income Total revenue Constant € bn Other income Fees NII • In Q2, total revenue increased 4% excluding the SRF & IPS contributions • NII and net fee income (97% of to
Slide 18: Sustained NII growth with improvements in volumes and NIM
16 Group +7% +6% +5% 2.38% 2.49% Spain -6% +7% +12% 1.06% 0.95% UK +13% +4% -3% 1.26% 1.43% Portugal -8% +2% +6% 1.33% 1.17% Poland +92% +8% +6% 2.09% 3.74% USA 0% +5% +5% 4.12% 3.68% Mexico +9% +11% +2% 4.19% 4.48% Brazil +2% +9% +4% 5.57% 5.54% Chile +7% +11% -7% 3.62% 3.51% Argentina +93% +55% +6
Slide 19: Fees backed by customer activity and higher value-added products
17 Net fee income backed by customer activity and growth in higher value-added products • Europe grew strongly mainly driven by CIB, higher card transactionality and insurance. The UK affected by CIB transfer (flattish like-for-like) • North America: strong growth in Mexico (insurance, cards and mut
Slide 20: Structural changes to operating model driving efficiencies
18 We continue to make structural changes to our operating model, driving sustainable efficiencies and mitigating the effects of overall higher inflation (1) Excluding the impact from average inflation. (2) South America excluding Argentina: +10.5%, +0.5% in real terms. In real terms1 DCB Europe Nor
Slide 21: Asset quality robust with LLPs normalizing
19 Jun-21 Mar-22 Jun-22 CoR2 0.94% 0.77% 0.83% NPL ratio 3.22% 3.26% 3.05% Coverage ratio 73% 69% 71% Stage 1 €904bn €967bn €998bn Stage 2 €70bn €68bn €66bn Stage 3 €33bn €36bn €34bn 2.1 1.9 2.3 1.6 2.2 2.6 Q1'21 Q2 Q3 Q4 Q1'22 Q2 Constant € bn Asset quality remains robust with LLPs normalizing foll
Slide 22: Cost of risk at low levels in most countries
20 Group 0.77% 0.83% Spain 0.92% 0.79% UK -0.09% -0.02% Portugal 0.09% -0.05% Poland 0.67% 0.95% USA 0.43% 0.78% Mexico 2.44% 2.05% Brazil 3.73% 4.26% Chile 0.85% 0.89% Argentina 3.01% 3.07% DCB 0.46% 0.44% Cost of risk remained at low levels in most countries • Spain: lower LLPs with improved credi
Slide 23: Highly-collateralized and diversified loan portfolio
21 Secured, 65% Unsecured, 35% Spain, 25% UK, 25% Portugal, 4% US, 11% Other Europe, 1% Poland 3% Mexico, 4% Brazil, 9% Chile, 4% Other South Am. 2% DCB, 12% Highly-collateralized and diversified portfolio with a medium-low risk profile Loan portfolio breakdown Jun-22 €1,015bn €1,015bn Mature Develo
Slide 24: Detail by country and business
22 Detail by country and business
Slide 25: Spain and UK
23 • Growing customer base every month in 2022, reflected in in individuals’ business (loans, deposits and insurance up) • Profit growth due to CoR improvement and cost control while revenue was flat. SRF charge in Q2 • Strong net mortgage lending (£7bn) and higher rates • Profit up YoY fuelled by N
Slide 26: USA and Mexico
24 USA Mexico • Loans (auto, consumer and CIB) and deposits increased in a highly competitive market • High profit (>€1bn) despite credit normalization, competitive pricing and lower end of lease income • Successful customer attraction strategy (+10% loyal customers YoY) reflected in volumes • Outst
Slide 27: Brazil
25 €91bn +9% €77bn +4% €45bn +0% 30.5% +1.6pp 4.26% +74bps P&L* Q2'22 % Q1'22 H1'22 % H1'21 NII 2,279 -4.9 4,421 2.1 Net fee income 857 3.7 1,600 2.6 Total revenue 3,374 0.2 6,393 4.9 Operating expenses -1,022 -1.6 -1,951 10.8 Net operating income 2,352 1.0 4,442 2.5 LLPs -1,163 23.6 -2,015 40.6 Und
Slide 28: Global businesses and Payments
26 Global businesses Payments • SCIB: solid profit increase driven by double-digit growth in all core businesses and strict efficiency management • WM&I: double-digit increase thanks to our diversified value- added proposition and solid performance in our 3 businesses (Private Banking, Asset Managem
Slide 29: Index
27 Index 1 Appendix 3 Group and Business areas review Final remarks 2 4 H1’22 Highlights
Slide 30: Outlook and final remarks
28 • In an uncertain environment, we expect revenue to improve: • NII should increase in the coming quarters, benefitting from interest rate hikes and expected activity levels, accelerating in 2023 • Fee income supported by commercial activity and global business growth (SCIB, WM&I and Payments) • C
Slide 31: Index
29 Index 1 Appendix 3 Business areas review Final remarks 2 4 Highlights and Group performance
Slide 32: Appendix
30 Appendix Primary and Secondary segments Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements Glossary
Slide 33: Europe
31 Europe Highlights Key data and P&L P&L* Q2'22 % Q1'22 H1'22 % H1'21 Total revenue 4,276 -0.3 8,581 7.7 Net operating income 2,172 -2.8 4,417 16.7 Underlying att. profit 821 -18.9 1,839 37.7 (*) € mn and % change in constant euros Loans Deposits Mutual Funds Efficiency CoR1 RoTE2 €589bn +5% €609bn
Slide 34: Portugal and Poland
32 Efficiency CoR1 RoTE2 Loans Deposits Mutual Funds Efficiency CoR1 RoTE2 Loans Deposits Mutual Funds €41bn +2% €44bn +6% €4bn -4% 40.9% +0.5pp -0.05% -46bps €31bn +8% €37bn +6% €3bn -31% 31.1% -11.2pp 0.95% +7bps Note: H1’22 data and YoY changes (loans, deposits and mutual funds in constant euros)
Slide 35: North America
33 North America Note: H1’22 data and YoY changes (loans, deposits and mutual funds in constant euros). (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. (2) Adjusted RoTE: adjusted based on Group’s deployed c
Slide 36: South America
34 South America Note: H1’22 data and YoY changes (loans, deposits and mutual funds in constant euros). (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. (2) Adjusted RoTE: adjusted based on Group’s deployed c
Slide 37: Chile and Argentina
35 Efficiency CoR1 RoTE2 Loans Deposits Mutual Funds €6bn +55% €11bn +67% €4bn +94% 58.0% -4.2pp 3.07% -87bps P&L* Q2'22 % Q1'22 H1'22 % H1'21 NII 432 58.9 732 92.9 Net fee income 143 31.9 264 88.3 Total revenue 458 39.6 821 68.7 Operating expenses -260 33.5 -477 57.3 Net operating income 198 48.6 3
Slide 38: Uruguay, Peru and Colombia
36Note: YoY changes in constant euros. (1) Adjusted RoTEs: adjusted based on Group’s deployed capital calculated as contribution of RWAs at 12%. Using tangible equity, RoTE is 20.7% for Uruguay, 21.5% for Peru and 15.5% for Colombia. 13 H1'22 33 H1'22 60 H1'22 • Strong customer loyalty reflected in
Slide 39: Global businesses: CIB and Wealth Management & Insurance
37 Total fees Profit RoTE P&L* Q2'22 % Q1'22 H1'22 % H1'21 Total revenue 1,849 1.4 3,612 20.2 Net operating income 1,176 -1.3 2,324 25.4 Underlying att. profit 772 -1.4 1,531 28.4 (*) € mn and % change in constant euros AuMs Total fees1 RoTE • Double-digit growth on a like-for-like basis (+15%), tha
Slide 40: Payments: Cards and PagoNxt
38Note: H1’22 and YoY changes. Cards do not include Digital Consumer Bank and PagoNxt. Cards PagoNxt quarterly revenue performance +87% H1’22 vs. H1’21 Merchants €74.6bn +35% International Trade 76 137 156 176 169 229 Q1'21 Q2 Q3 Q4 Q1'22 Q2 • Merchant Acquiring: Total Payments Volume rose 35% backe
Slide 41: Corporate Centre
39 Corporate Centre Highlights Income statement • NII affected due to the higher liquidity buffer to strengthen our position • Negative FX hedging results offset by the positive performance of exchange rates in the countries' results • Significant decrease in LLPs and other provisions P&L* H1'22 H1'
Slide 42: Appendix
40 Appendix Primary and Secondary segments Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements Glossary
Slide 43: Well-funded, diversified and highly liquid balance sheet
41 Well-funded, diversified, prudent and highly liquid balance sheet (large % contribution from customer deposits), reflected in solid liquidity ratios Liquidity Balance Sheet ST Funding Securitizations and others Loans and advances to customers Fixed assets & other Customer deposits M/LT debt issua
Slide 44: Balance sheet structure and NII sensitivity to rates
42 Our balance sheet structure positions us to benefit from expected market rate increases, particularly in year 2 once balance sheets have fully repriced (1) Parent bank. (2) Ring-fenced bank. (3) SBNA. Generally positive NII sensitivity… 12 month NII sensitivity to a +/-100 bp parallel shift scena
Slide 45: Conservative and decentralized liquidity and funding model
43 Conservative and decentralized liquidity and funding model €23bn1 issued in public markets in H1’22 € bn, Jun-22, Average exchange rates Very manageable maturity profile € bn, Jun-22 Covered Bonds Senior Non- Preferred Senior Other Other includes issuances in Brazil, Mexico, Portugal and Poland
Slide 46: Execution of 2022 funding plan
44 YTD issuances against 2022 funding plan Execution of 2022 funding plan € bn, Jun-22 Banco Santander, S.A.’s 2022 funding plan contemplates the following: Note: Issuance plan subject to, amongst other considerations, market conditions and regulatory requirements. Other secured issuances (for examp
Slide 47: Capital levels exceed minimum regulatory requirements
45 Santander’s capital levels, both phased-in and fully loaded, exceed minimum regulatory requirements 4.50% 12.33% 0.84% 2.50% 1.00% CCyB, 0.01% 1.78% 1.52% 2.38% 2.54% 13.01% 16.39% Regulatory Requirement 2022 Group ratios Mar-22 4.50% 12.05% 11-12% 0.84% 2.50% 1.00% CCyB, 0.01% 1.78% 1.52% 1.50%
Slide 48: TLAC/MREL for the Resolution Group
46 TLAC/MREL for the Resolution Group headed by Banco Santander, S.A. Note: Figures applying the IFRS 9 transitional arrangements. (1) TLAC RWAs are €293bn and leverage exposure is €829bn. MREL RWAs are €379bn and leverage exposure is €886bn. (2) MREL Requirement based on RWAs from Jan-24: 30.32% +
Slide 49: Appendix
47 Appendix Primary and Secondary segments Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements Glossary
Slide 50: Yield on loans (%)
48 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Europe 2.06 2.02 1.98 1.99 2.08 2.23 Spain 1.84 1.78 1.68 1.69 1.73 1.78 United Kingdom 2.27 2.25 2.27 2.23 2.23 2.30 Portugal 1.52 1.47 1.44 1.41 1.42 1.45 Poland 2.90 2.91 2.93 3.31 4.64 6.21 North America 7.71 7.59 7.48 7.38 7.37 7.63 US 6.91 6.76 6.59 6.41
Slide 51: Cost of deposits (%)
49 Cost of deposits (%) Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Europe 0.11 0.08 0.07 0.07 0.08 0.14 Spain 0.05 0.05 0.05 0.05 0.05 0.05 United Kingdom 0.21 0.14 0.11 0.10 0.12 0.21 Portugal 0.02 0.01 0.01 0.01 0.00 0.00 Poland 0.06 0.04 0.02 0.04 0.16 0.49 North America 0.65 0.61 0.65 0.67 0.73 0.88 US
Slide 52: Appendix
50 Appendix Primary and Secondary segments Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements Glossary
Slide 53: Stage coverage
51 Exposure ¹ Coverage Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Stage 1 885 904 912 929 967 998 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% Stage 2 70 70 67 71 68 66 8.1% 8.2% 8.6% 7.7% 8.0% 8.5% Stage 3 32 33 33 33 36 34 42.5% 42.2% 43.0% 41.3% 41.0% 40.1% Stage coverag
Slide 54: NPL ratio (%)
52 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Europe 3.26 3.30 3.15 3.12 3.01 2.63 Spain 4.98 5.16 4.86 4.72 4.47 3.83 United Kingdom 1.35 1.30 1.27 1.43 1.42 1.17 Portugal 3.84 3.71 3.44 3.44 3.42 3.33 Poland 4.82 4.58 4.34 3.61 3.50 3.45 North America 2.39 2.28 2.56 2.42 2.83 2.71 US 2.11 2.00 2.36
Slide 55: Total coverage ratio (%)
53 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Europe 50.0 48.4 51.1 49.4 49.1 50.2 Spain 48.0 45.7 49.6 51.4 50.4 49.4 United Kingdom 40.5 37.4 36.6 25.8 26.1 32.9 Portugal 69.2 73.0 75.5 71.7 72.8 74.3 Poland 70.3 72.4 74.6 73.9 78.5 76.0 North America 153.4 152.3 139.3 134.9 110.5 111.4 US 183.2 18
Slide 56: Credit impaired loans and loan-loss allowances by area
54 Spain, 23.6% UK, 4.1% Portugal, 4.3% Poland, 3.6% Other Europe, 0.1% US, 17.8% Mexico, 4.4% Brazil, 24.3% Chile, 5.1% Argentina, 1.1% Other South America, 0.8% Digital Consumer Bank, 10.7% Spain, 34.6% UK, 9.1% Portugal, 4.2% Poland, 3.5% Other Europe, 0.2% US, 10.6% Mexico, 3.8% Brazil, 19.0% Ch
Slide 57: Cost of risk (%)
55 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Europe 0.51 0.49 0.48 0.39 0.37 0.37 Spain 0.79 0.91 0.97 0.92 0.88 0.79 United Kingdom 0.21 0.09 0.01 (0.09) (0.08) (0.02) Portugal 0.38 0.41 0.35 0.09 0.03 (0.05) Poland 1.02 0.88 0.82 0.67 0.65 0.95 North America 2.34 1.67 1.46 0.93 0.93 1.09 US 2.12 1
Slide 58: Appendix
56 Appendix Primary and Secondary segments Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements Glossary
Slide 59: Progress on ESG agenda and new decarbonization targets
57 We continue to make progress on our ESG agenda and added three new decarbonization targets Note: H1’22 data not audited. 2025 / 2030 target2020 20% 3% 23% 23.7% 30% by 2025 ~0% by 2025 5mn 10mn by 20257mn 26.3% 2018 2019 2021 100bn by 202527.0bn 0.11 tCO2e / MWh in 2030 0 by 2030 0.21 7.0 bn 43%
Slide 60: Appendix
58 Appendix Primary and Secondary segments Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements Glossary
Slide 61: Santander Group quarterly income statement (EUR mn)
59 SANTANDER GROUP (EUR mn) (*) Including: in Q1’21, restructuring costs. Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 7,956 8,240 8,458 8,716 8,855 9,554 +7.9% 16,196 18,409 +13.7% Net fee income 2,548 2,621 2,641 2,692 2,812 3,040 +8
Slide 62: Santander Group (constant EUR mn)
60 SANTANDER GROUP (Constant EUR mn) (*) Including: in Q1’21, restructuring costs. Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 8,504 8,722 8,861 9,162 9,025 9,384 +4.0% 17,226 18,409 +6.9% Net fee income 2,710 2,761 2,740 2,817 2,865
Slide 63: Europe (EUR)
61 Europe (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 2,551 2,656 2,650 2,717 2,839 2,981 +5.0% 5,207 5,820 +11.8% Net fee income 1,072 1,086 1,080 1,107 1,154 1,162 +0.7% 2,157 2,316 +7.3% Gains (losses) on financial transac
Slide 64: Europe (constant EUR)
62 Europe (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 2,586 2,680 2,668 2,725 2,831 2,989 +5.6% 5,266 5,820 +10.5% Net fee income 1,077 1,088 1,081 1,108 1,154 1,162 +0.7% 2,165 2,316 +7.0% Gains (losses) on financia
Slide 65: Spain (EUR)
63 Spain (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 1,074 1,065 998 1,028 998 1,017 +2.0% 2,139 2,015 -5.8% Net fee income 684 693 679 732 745 730 -2.1% 1,378 1,475 +7.1% Gains (losses) on financial transactions and other 31
Slide 66: United Kingdom (EUR)
64 United Kingdom (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 989 1,088 1,156 1,151 1,192 1,227 +2.9% 2,076 2,418 +16.5% Net fee income 120 117 114 82 92 110 +19.1% 238 202 -15.0% Gains (losses) on financial transactions and
Slide 67: United Kingdom (constant EUR)
65 United Kingdom (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 1,025 1,114 1,175 1,159 1,184 1,235 +4.3% 2,139 2,418 +13.1% Net fee income 125 120 116 82 92 110 +20.6% 245 202 -17.5% Gains (losses) on financial transa
Slide 68: United Kingdom (GBP)
66 United Kingdom (GBP mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 864 938 989 976 997 1,040 +4.3% 1,802 2,037 +13.1% Net fee income 105 101 97 69 77 93 +20.6% 206 170 -17.5% Gains (losses) on financial transactions and other (8)
Slide 69: Portugal (EUR)
67 Portugal (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 185 184 178 174 170 171 +0.5% 370 340 -8.0% Net fee income 99 110 115 116 122 123 +0.6% 210 245 +16.8% Gains (losses) on financial transactions and other 135 1 12 2 41 (
Slide 70: Poland (EUR)
68 Poland (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 233 242 244 302 407 486 +19.4% 475 894 +88.1% Net fee income 127 126 133 132 138 130 -5.7% 253 268 +5.8% Gains (losses) on financial transactions and other (10) 41 21 26 (
Slide 71: Poland (constant EUR)
69 Poland (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 228 237 240 300 406 488 +20.2% 465 894 +92.2% Net fee income 124 124 131 132 137 131 -5.1% 248 268 +8.1% Gains (losses) on financial transactions and other (10) 4
Slide 72: Poland (PLN)
70 Poland (PLN mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 1,057 1,098 1,112 1,389 1,881 2,261 +20.2% 2,155 4,142 +92.2% Net fee income 576 573 606 610 637 605 -5.1% 1,149 1,242 +8.1% Gains (losses) on financial transactions and o
Slide 73: Other Europe (EUR)
71 Other Europe (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 71 76 75 61 72 80 +10.3% 147 152 +3.5% Net fee income 41 38 39 44 56 69 +23.1% 79 126 +58.2% Gains (losses) on financial transactions and other 6 (3) (1) (6) 21 9 -5
Slide 74: Other Europe (constant EUR)
72 Other Europe (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 73 79 77 63 73 79 +7.6% 153 152 -0.5% Net fee income 45 41 41 46 57 68 +19.7% 85 126 +47.0% Gains (losses) on financial transactions and other 9 (3) (0) (6)
Slide 75: North America (EUR)
73 North America (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 1,971 1,977 2,037 2,086 2,131 2,352 +10.3% 3,949 4,483 +13.5% Net fee income 451 410 386 397 443 494 +11.6% 861 937 +8.8% Gains (losses) on financial transactions a
Slide 76: North America (constant EUR)
74 North America (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 2,177 2,173 2,188 2,199 2,198 2,285 +4.0% 4,349 4,483 +3.1% Net fee income 498 448 412 418 458 479 +4.7% 946 937 -1.0% Gains (losses) on financial transact
Slide 77: United States (EUR)
75 United States (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 1,310 1,300 1,332 1,356 1,378 1,499 +8.8% 2,610 2,877 +10.2% Net fee income 241 191 174 176 197 198 +0.5% 432 394 -8.8% Gains (losses) on financial transactions and
Slide 78: United States (constant EUR)
76 United States (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 1,445 1,434 1,437 1,417 1,415 1,462 +3.3% 2,879 2,877 -0.1% Net fee income 265 211 187 183 202 192 -4.8% 477 394 -17.3% Gains (losses) on financial transac
Slide 79: United States (USD)
77 United States (USD mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 1,578 1,567 1,569 1,548 1,546 1,597 +3.3% 3,145 3,143 -0.1% Net fee income 290 231 204 200 221 210 -4.8% 521 431 -17.3% Gains (losses) on financial transactions and
Slide 80: Mexico (EUR)
78 Mexico (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 661 678 705 730 753 853 +13.3% 1,339 1,606 +20.0% Net fee income 204 210 203 211 245 283 +15.5% 414 529 +27.6% Gains (losses) on financial transactions and other (6) (16)
Slide 81: Mexico (constant EUR)
79 Mexico (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 732 738 751 782 782 824 +5.3% 1,470 1,606 +9.3% Net fee income 226 229 216 226 255 274 +7.4% 455 529 +16.2% Gains (losses) on financial transactions and other (7)
Slide 82: Mexico (MXN)
80 Mexico (MXN mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 16,201 16,346 16,630 17,312 17,319 18,241 +5.3% 32,547 35,560 +9.3% Net fee income 4,995 5,077 4,781 4,998 5,641 6,061 +7.4% 10,072 11,703 +16.2% Gains (losses) on financi
Slide 83: Other North America (EUR)
81 Other North America (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 0 0 0 0 0 (0) — 0 0 +32.6% Net fee income 7 8 9 10 1 13 — 14 14 -1.9% Gains (losses) on financial transactions and other (5) (2) 1 (4) 1 4 — (7) 5 — Total rev
Slide 84: Other North America (constant EUR)
82 Other North America (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 0 0 0 0 0 (0) — 0 0 +32.6% Net fee income 7 8 9 10 1 13 — 14 14 -1.9% Gains (losses) on financial transactions and other (5) (2) 1 (4) 1 4 — (7) 5 —
Slide 85: South America (EUR)
83 South America (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 2,570 2,756 2,916 3,065 3,037 3,390 +11.6% 5,326 6,427 +20.7% Net fee income 842 928 956 995 1,013 1,162 +14.8% 1,770 2,175 +22.9% Gains (losses) on financial trans
Slide 86: South America (constant EUR)
84 South America (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 2,872 3,016 3,144 3,390 3,151 3,276 +4.0% 5,888 6,427 +9.2% Net fee income 952 1,026 1,027 1,099 1,051 1,124 +6.9% 1,978 2,175 +10.0% Gains (losses) on fin
Slide 87: Brazil (EUR)
85 Brazil (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 1,778 1,917 2,081 2,091 2,143 2,279 +6.4% 3,696 4,421 +19.6% Net fee income 632 698 696 701 743 857 +15.4% 1,330 1,600 +20.3% Gains (losses) on financial transactions and
Slide 88: Brazil (constant EUR)
86 Brazil (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 2,122 2,210 2,322 2,415 2,266 2,155 -4.9% 4,332 4,421 +2.1% Net fee income 754 805 775 810 786 814 +3.7% 1,559 1,600 +2.6% Gains (losses) on financial transaction
Slide 89: Brazil (BRL)
87 Brazil (BRL mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 11,731 12,215 12,834 13,348 12,527 11,912 -4.9% 23,946 24,439 +2.1% Net fee income 4,169 4,450 4,285 4,476 4,342 4,501 +3.7% 8,619 8,844 +2.6% Gains (losses) on financial
Slide 90: Chile (EUR)
88 Chile (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 497 511 467 508 483 554 +14.8% 1,008 1,038 +3.0% Net fee income 95 96 104 100 112 110 -2.1% 190 222 +16.4% Gains (losses) on financial transactions and other 22 30 12 14 55
Slide 91: Chile (constant EUR)
89 Chile (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 480 489 472 529 485 553 +14.0% 969 1,038 +7.0% Net fee income 92 92 104 104 112 109 -2.8% 183 222 +21.0% Gains (losses) on financial transactions and other 22 29 1
Slide 92: Chile (CLP)
90 Chile (CLP mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 433,496 441,440 425,810 477,726 437,644 498,964 +14.0% 874,937 936,608 +7.0% Net fee income 82,698 82,631 94,239 94,052 101,410 98,614 -2.8% 165,329 200,024 +21.0% Gains (l
Slide 93: Argentina (EUR)
91 Argentina (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 203 234 267 361 300 432 +44.1% 437 732 +67.4% Net fee income 74 87 110 149 121 143 +18.6% 161 264 +63.4% Gains (losses) on financial transactions and other (16) (22) (1
Slide 94: Argentina (constant EUR)
92 Argentina (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 167 212 237 331 283 449 +58.9% 379 732 +92.9% Net fee income 61 79 98 136 114 150 +31.9% 140 264 +88.3% Gains (losses) on financial transactions and other (13)
Slide 95: Argentina (ARS)
93 Argentina (ARS mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 21,907 27,724 30,984 43,242 36,978 58,765 +58.9% 49,631 95,742 +92.9% Net fee income 7,977 10,342 12,802 17,770 14,875 19,625 +31.9% 18,318 34,500 +88.3% Gains (losses)
Slide 96: Other South America (EUR)
94 Other South America (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 92 93 102 105 111 125 +12.2% 185 236 +27.4% Net fee income 41 46 45 46 38 52 +38.8% 88 90 +2.9% Gains (losses) on financial transactions and other 7 13 13 14
Slide 97: Other South America (constant EUR)
95 Other South America (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 102 105 113 115 117 119 +2.3% 207 236 +14.3% Net fee income 45 51 50 49 40 51 +27.8% 96 90 -5.7% Gains (losses) on financial transactions and other 8
Slide 98: Digital Consumer Bank (EUR)
96 Digital Consumer Bank (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 996 1,015 1,017 1,014 1,020 1,012 -0.7% 2,010 2,032 +1.1% Net fee income 188 206 222 204 206 219 +6.1% 395 425 +7.5% Gains (losses) on financial transaction
Slide 99: Digital Consumer Bank (constant EUR)
97 Digital Consumer Bank (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 1,003 1,017 1,023 1,014 1,018 1,014 -0.5% 2,020 2,032 +0.6% Net fee income 189 206 222 204 206 219 +6.2% 395 425 +7.5% Gains (losses) on financial
Slide 100: Corporate Centre (EUR)
98 Corporate Centre (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income (133) (164) (162) (165) (172) (181) +5.0% (297) (353) +18.9% Net fee income (5) (8) (2) (12) (3) 2 — (13) (1) -92.8% Gains (losses) on financial transactions and
Slide 101: Retail Banking (EUR)
99 Retail Banking (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 7,286 7,573 7,770 7,966 8,094 8,620 +6.5% 14,859 16,714 +12.5% Net fee income 1,721 1,768 1,754 1,801 1,816 1,975 +8.8% 3,489 3,791 +8.7% Gains (losses) on financi
Slide 102: Retail Banking (constant EUR)
100 Retail Banking (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 7,798 8,018 8,142 8,382 8,250 8,464 +2.6% 15,816 16,714 +5.7% Net fee income 1,835 1,861 1,820 1,892 1,850 1,941 +4.9% 3,696 3,791 +2.6% Gains (losses) o
Slide 103: Corporate & Investment Banking (EUR)
101 Corporate & Investment Banking (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 690 716 729 785 786 928 +18.1% 1,407 1,714 +21.8% Net fee income 462 427 433 422 521 506 -3.0% 889 1,027 +15.5% Gains (losses) on financial transa
Slide 104: Corporate & Investment Banking (constant EUR)
102 Corporate & Investment Banking (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 723 749 755 813 799 915 +14.5% 1,472 1,714 +16.4% Net fee income 486 448 446 435 529 498 -5.9% 934 1,027 +9.9% Gains (losses) on financia
Slide 105: Wealth Management & Insurance (EUR)
103 Wealth Management & Insurance (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 113 115 122 127 145 184 +26.4% 228 329 +44.3% Net fee income 289 306 315 336 321 334 +4.0% 596 655 +9.9% Gains (losses) on financial transactions a
Slide 106: Wealth Management & Insurance (constant EUR)
104 Wealth Management & Insurance (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 117 120 125 130 147 182 +23.8% 237 329 +39.0% Net fee income 303 319 325 344 325 330 +1.6% 622 655 +5.2% Gains (losses) on financial trans
Slide 107: PagoNxt (EUR)
105 PagoNxt (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income (1) (1) 0 3 2 3 +85.6% (2) 5 — Net fee income 81 127 140 144 157 222 +41.2% 209 379 +82.0% Gains (losses) on financial transactions and other (14) (4) 4 14 3 11 +244.8%
Slide 108: PagoNxt (constant EUR)
106 PagoNxt (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income (1) (1) (0) 3 2 3 +72.1% (2) 5 — Net fee income 91 141 152 159 164 215 +30.9% 232 379 +63.3% Gains (losses) on financial transactions and other (14) (3) 4 14 3
Slide 109: Appendix
107 Appendix Primary and Secondary segments Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements Glossary
Slide 110: Glossary - Acronyms
108 Glossary - Acronyms ❑ ALCO: Assets and Liabilities Committee ❑ AT1: Additional Tier 1 ❑ AuM: Assets under Management ❑ BFG: Deposit Guarantee Fund in Poland ❑ bn: Billion ❑ Bps: basis points ❑ CET1: Common equity tier 1 ❑ CIB: Corporate & Investment Bank ❑ CoR: Cost of credit / cost of risk ❑ Co
Slide 111: Glossary - Definitions
109 Glossary - Definitions Notes: The averages for the RoTE and RoRWA denominators are calculated using 7 months from December to June. For periods less than one year, and if there are results in the net capital gains and provisions line, the profit used to calculate RoE and RoTE is the annualized u
Slide 112: Thank You
Thank You. Our purpose is to help people and businesses prosper. Our culture is based on believing that everything we do should be:
Slide 113: Signature
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Banco Santander, S.A. Date: 28 July 2022 By: /s/ José García Cantera Name: José García Cantera Title: Ch