Banco Santander, S.a. · BME:SAN
Banco Santander — Bank of America Merrill Lynch 24th Annual Financials CEO Conference 2019
22 slides from Banco Santander's conference presentation, Sep 25, 2019
Slide 1: Delivering in a world of extremes
September 2019 Santander Bank of America Merrill Lynch 24th Annual Financials CEO Conference 2019 Delivering in a world of extremes
Slide 2: Important Information
Important Information Non-IFRS and alternative performance measures In addition to the financial information prepared in accordance with International Financial Reporting Standards (“IFRS”) and derived from our financial statements, this presentation contains certain financial measures that constitu
Slide 3: Important Information
Important Information Forward-looking statements speak only as of the date of this presentation and are based on the knowledge, information available and views taken on such date; such knowledge, information and views may change at any time. Santander does not undertake any obligation to update or r
Slide 4: Content: Santander years
CONTENT 01 Santander 25 years 02 Santander 2014-2019 03 Santander for the future
Slide 5: We have been top quartile last years vs. our comparables
We have been top quartile last 25 years vs. our comparables… Total Shareholder Return (TSR) – Cumulative since 1995 (%) European competitors US competitors 1,526 1,351 825 651 599 442 341 327 1 224 217 149 64 62 292 19 6 3 Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 1
Slide 6: Share evolution and dividend yield among best performers
…thanks to share evolution and dividend yield among best performers Competitors1 Top quartile 2nd and 3rd quartiles Bottom quartile TSR (%) 990 187 -38 651 Share price (CAGR evolution %) 378 39 -65 117 Dividend (Aggregated yield %) 612 149 27 534 6 Note: Data from April 1995 to April 2019, local cur
Slide 7: Historic trends in revenues and Profit Before Tax
Historic trends in revenues and Profit Before Tax Revenue (bn€) 60 50 40 30 20 10 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 +12% CAGR +3% CAGR 13-18 Profit Before Taxes (bn€) 16 14 12 10 8 6 4 2 0 +13% CAGR +15% CAGR 13-
Slide 8: Content: Santander 2014-2019
CONTENT 01 Santander 25 years 02 Santander 2014-2019 03 Santander for the future
Slide 9: Solid and strong results delivered in the last years
Solid and strong results delivered in the last 5 years 2018 (vs. 20133) Growth Profitability Strength Customer revenues1 €45.8Bn (+20%; +€7.6Bn) Attributable profit1 €7.8Bn (+87%; +€3.6Bn) 5y accumulated attrib. profits €32.4Bn Statutory RoTE 11.7% (+210 bps) Efficiency ratio 47.0% (-110 bps) Best i
Slide 10: In 2015 we set a clear strategy focused on customer loyalty
In 2015 we set a clear strategy focused on customer loyalty and building a responsible bank Earn loyalty lasting customer Be the bank of choice for our customers, delivering superior customer experience Deliver all products and services through E2E digital channels in a fast and efficient way Digita
Slide 11: We have delivered: Strong growth based on loyalty
We have delivered: Strong growth based on loyalty and becoming the most sustainable bank in the world2 Loyal customers (Mn) +44% 19.9 13.8 2015 2018 Digital customers (Mn) +93% 32.0 16.6 2015 2018 Customer revenues (Constant €Bn1) +24% 45.8 37.0 2015 2018 DJSI ranking +10 places #11 #1 2015 2019 (1)
Slide 12: 90% of our capital with RoTE > CoE in 2018 vs. 40% in 2015
90% of our capital1 with RoTE > CoE in 2018 vs. 40% in 2015 thanks to the turnaround of some core geographies In 2 countries representing 25% of Group’s TNAV, RoTE increased to 20% RoTE 20% 20% 14% 13% 2015 2018 2015 2018 Digital customers x2.6 x3.3 Loyal customers +65% +81% Positive evolution in SB
Slide 13: Increased profit in high double digits while adding +€25bn capital
Increased profit in high double digits while adding +€25bn capital 2013 2014 2015 2016 2017 2018 10.84% 11.30%2 CET1 FL 7.79%1 8.27% 10.05% 10.55% 7.5 € Bn capital increase to strengthen solvency 7.0 € Bn capital increase for Popular Attributable profit to the Group3, (Mn) Avg. Euribor 12M4 Statutor
Slide 14: We have delivered strong value for our shareholders
In summary, we have delivered strong value for our shareholders… EPS growth1 2015-18 TNAVps + cum. Cash DPS1 2015-18 + 22% (+55% ex. FX) + 27% (+41% ex. FX) Total dividend per share2 Since 2015 capital increase €1.15 19% dividend yield Since 2017 capital increase €0.45 9% dividend yield (1) Statutor
Slide 15: Building on strong foundations for higher earnings predictability and growth
…building on our strong foundations to achieve higher earnings predictability and growth Quarterly reported EPS volatility1 1999-2018 699% 346% 124% 109% 88% 77% 58% 44% 42% 34% 9% 2x 2x 0x 0x 6x 4x 6x 4x 1x 10x 5x Net income increase 1999-2018 (1) Source: Bloomberg, with GAAP Criteria. Note: Standa
Slide 16: Santander is amongst the best valued banks in Europe
As a result, Santander is amongst the best valued banks in Europe P/TBV 12M fwd 1.1X 0.9X 0.8X 0.7X 0.7X 0.6X 0.5X E R A G I T HSBC RICOL E BBV IN BNP D AG NTAND NI CRE A U DIT S CRE 16 Note: Source Bloomberg as of 13-Sep-19.
Slide 17: Increasing the gap vs the 2nd Eurozone bank since Investor Day 2015
Increasing the gap vs the 2nd Eurozone bank since the Investor Day 2015… Santander Market cap vs Peers 100% 2º Eurozone bank European banks index SAN Market cap. vs. 2º Eurozone bank SAN relative performance vs. European banks index Sept 2015 +4% +0% Sept 2019 +12% +21% Note: Source: Bloomberg from
Slide 18: Outperforming Eurozone banks since September 2014
…and outperforming Eurozone banks since September 2014 Share performance since 10-Sep-20141 (base 100) 120 110 100 90 80 70 60 50 40 2014 2015 2016 2017 2018 2019 European Banks: 66 SAN: 63 Eurozone banks: 59 (1) Source Bloomberg as of 12-September-2019. Santander considering dividend and capital in
Slide 19: Content: Santander for the future
CONTENT 01 Santander 25 years 02 Santander 2014-2019 03 Santander for the future
Slide 20: Group knowledge and scale add increasing value to our franchises
Group knowledge and scale add increasing value to our retail and commercial franchises Existing global businesses Payment related businesses Shared services Corporate and Investment Banking Wealth Management1 Consumer Finance2 Global Merchant Services Global Trade Services One Pay FX Digital | IT&Op
Slide 21: Our medium-term goals
Our medium-term goals RoTE1 13-15% Efficiency 42-45% FL CET1 11-12% Dividend pay-out ratio 40-50% We are the leading LatAm bank Continue structural profitable growth Mid-term RoTE1 20-22% C/I 33-35% Laid foundations for accelerating growth Mid-term RoTE1 11-13%2 C/I 39-41% Leading European bank in p
Slide 22: Thank you
Thank you Our purpose is to help people and business prosper Our culture is based on believing that everything we do should be 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, ther
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