Banco Santander, S.a. · BME:SAN
Banco Santander — Q4 2021 Earnings Presentation
123 slides from Banco Santander's earnings presentation, Feb 4, 2022
Slide 1: Earnings Presentation 2021
All. Together. Now 2021 Earnings Presentation
Slide 2: Important information
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
Slide 3: Important information
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
Slide 4: Agenda: 2021 Performance, Strategic Priorities, Targets
1. 2021 2. Value Creation & 3. Financial Targets Performance Strategic Priorities and Key Takeaways
Slide 5: A strong 2021, building on proven track record since 2015
A strong 2021, building on proven track record since 2015 Growth Profitability Strength Customers (mn) Revenue1 (€bn) C/I RoTE2 CET1 FL 153 46.4 47.6% 12.7% 12.0%3 121 35.9 11.0% 10.0% 46.2% 2021 2015 2021 2015 2021 2015 2021 2015 2021 2015 2021 ID19: 42% - 45% ID19: 13% - 15% ID19: 11% - 12% Revenu
Slide 6: Strong operating performance in 2021: €8.7bn of underlying profit
Strong operating performance in 2021: €8.7bn of underlying profit 2021 (vs. 2020) Growth Profitability Strength Total customers RoTE2 CET1 FL3 153mn (+5mn) 12.7% (+529bps) 12.0% (+7bps) Total revenue1 Efficiency ratio Cost of credit4 €46.4bn (+7%) 46.2% (-86bps) 0.8% (-51bps) +11% TNAVps + cash DPS
Slide 7: All-time record underlying profit before tax
All-time record underlying profit before tax… % change Underlying PBT +21%2 above 2019 EUR million 2021 2020 Euros Constant euros Constant EUR bn NII 33,370 31,994 4 7 15.3 Net fee income 10,502 10,015 5 8 12.7 Trading and other income 2,532 2,591 -2 0 9.3 Total revenue 46,404 44,600 4 7 Operating e
Slide 8: Reflecting strong business momentum
… reflecting strong business momentum Activity recovery Total revenue 2021 vs. 2020 in constant EUR Constant EUR bn +4% +6% +13% Loans Deposits Mutual funds +7% 46.4 Growing in higher return and value-added services & products 2021 vs. 2020 43.3 43.4 +38% +26% +2mn PoS turnover Cards turnover New BN
Slide 9: Geographical and business diversification delivers growth and profitability
Geographical and business diversification delivers growth and profitability 2021 Total customers Revenue1 RoTE2 % of Group’s % of Group’s (vs. 2020) +3% YoY +7% YoY +529bps YoY3 customer loans4 underlying profit5 Europe 46mn €16.3bn 9.9% 60% 28% North 24mn €11.0bn 24.6% 14% 29% America South 63mn €1
Slide 10: Delivering on our ESG commitments
Delivering on our ESG commitments, supporting our customers’ green transition and financially empowering more people Supporting the green Building a more inclusive With a talented and diverse transition society team €61bn 7.4mn 6 Green finance since 20191 Geographies where we are Top 10 company to P
Slide 11: Strong performance and increase in CET1 ratio generated shareholder value
Strong performance and increase in CET1 ratio generated shareholder value 2021 shareholder remuneration policy 40% payout TNAVps Cash DPS €4.12 +€0.33 YoY €7.6 Cents 2021 shareholder value creation +11%1 1) TNAV per share + cash DPS of €7.6 cents paid in calendar year 2021 11
Slide 12: Operational results
OPERATIONAL RESULTS Note: quarterly and annual income statement can be found in the appendix 12
Slide 13: All-time record underlying profit before tax
All-time record underlying profit before tax % change Underlying PBT +21%2 above 2019 EUR million 2021 2020 Euros Constant euros Constant EUR bn NII 33,370 31,994 4 7 15.3 Net fee income 10,502 10,015 5 8 12.7 Trading and other income 2,532 2,591 -2 0 9.3 Total revenue 46,404 44,600 4 7 Operating ex
Slide 14: Improving performance QoQ in the main P&L lines
Improving performance QoQ in the main P&L lines, notably revenue… Underlying attributable profit Total revenue Constant EUR bn Constant EUR bn +7% FY21/20 Q4 charges DGF & Bank Levy (-€285mn after tax) NII + 11.0 11.4 10.7 10.6 10.9 Net fee 10.2 10.3 9.7 income 2.3 2.2 2.1 2.1 Other 0.5 0.7 0.9 0.5
Slide 15: Structural changes to operating model driving efficiencies
… while we continue to make structural changes to our operating model, driving sustainable efficiencies Efficiency ratio Total costs (2021 vs. 2020)1 -0.8 pp Total Group +4.1% -1.9% in real terms3 47.0% 47.0% Cost by region 46.2% Europe -0.2% -3.1% North America +8.1% +3.1% 2019 2020 2021 South Amer
Slide 16: Strong credit quality allowed release of overlay provisions
Strong credit quality allowed us to release c. €750mn of overlay provisions Loan-loss provisions Credit quality indicators Constant EUR bn -37% 2019 2020 2021 11.8 Cost of credit 1.00% 1.28% 0.77% 8.0 7.4 NPL ratio 3.32% 3.21% 3.16% Coverage 2019 2020 2021 ratio 68% 76% 71% 16
Slide 17: Organic generation in Q4 drove increase in FL CET1 ratio
Organic generation in Q4 drove increase in the FL CET1 ratio to 12%, including impact of announced corporate transactions pending completion at year end Fully-loaded CET1 ratio quarterly evolution % +0.42 -0.02 12.12 -0.09 -0.04 11.96 11.85 -0.16 Sep-21 Organic Regulatory Markets Corporate Dec-21 Op
Slide 18: Europe 2021 Highlights
Europe 2021 Highlights 2021 Key data1 Foundations laid for One Europe business transformation: Customer Loans +3% funds +6% • Top 3 NPS in all markets supported by improved digital capabilities, e.g. OneApp €576bn €712bn • Structurally reducing cost to serve Efficiency -5.4pp CoR -19bps Growth in vo
Slide 19: Europe: Spain and UK
Europe Spain UK Improved competitive positioning reflected in NPS and Solid business dynamics: record net mortgage lending market shares in new lending to individuals (€9bn; +70% YoY) Net operating income +15% (revenue +3%; costs -7%). Four-fold profit increase driven by 22% growth in NII, Cost of c
Slide 20: North America 2021 Highlights
North America 2021 Highlights 2021 Key data1 Customer Improved competitive positioning, increased Loans +4% funds +9% connectivity and business simplification €134bn €137bn Volumes up driven by retail, CIB and WM&I Efficiency +1.8pp CoR -199bps Revenue +5%: deposit price management, leasing results
Slide 21: North America: US and Mexico
North America US Mexico Excellent 2021 performance, continuing business Investments in customer experience and innovative products transformation reflected in customers (+0.7mn) and market share gains Profit tripled due to +11% in revenue (volumes and Profit driven by acceleration in lending and cus
Slide 22: South America 2021 Highlights
South America 2021 Highlights 2021 Key data1 Customer Strong growth in customer base (+5.8mn) and Loans +12% funds +9% expansion across segments €129bn €162bn Double-digit volume growth in individuals, consumer and wealth management Efficiency -1.0pp CoR -72bps Top 3 NPS in 4 countries (#1 in Brazil
Slide 23: South America: Brazil and Chile
South America Brazil Chile Record customer attraction (+5.1mn) and strong growth Strong customer growth (+0.5mn) driven by Santander in mortgages, SMEs, cards and auto Life, Superdigital and the launch of Getnet Improved profitability: customer revenue (+11%), record Profit up due to double-digit gr
Slide 24: Digital Consumer Bank 2021 Highlights
DCB Digital Consumer Bank 2021 Highlights 2021 Key data1 Customer Profit & profitability increased: revenue +3% (greater activity, low funding costs) and even lower cost of credit Loans -1% funds +10% Reinforced auto leadership position with strategic €117bn €58bn alliances, leasing & subscriptions
Slide 25: Global businesses: SCIB and WM&I
Global businesses SCIB WM&I Corporate & Investment Banking Wealth Management & Insurance Top 3 in LatAm & Europe in renewable project finance2 Double-digit growth driven by product innovation (incl. ESG focus) and significant growth in digital channels Strong underlying profit growth YoY on revenue
Slide 26: Common tech backbone for payments of all our banks
Continued to build a common tech backbone for the payments of all our banks and open market Revenue1: +47% YoY to €495mn in 2021 Group Payments Performance QoQ 2021 142 161 Number of trx Value of trx 123 68 9bn payments ~€12trn value Q1'21 Q2 Q3 Q4'21 Merchant acquiring International Trade 2021 2021
Slide 27: Agenda: Value Creation & Strategic Priorities
1. 2021 2. Value Creation & 3. Financial Targets Performance Strategic Priorities and Key Takeaways
Slide 28: Delivering today while building the Santander of tomorrow
Delivering today while building the Santander of tomorrow Our aim To be the best open financial services platform, by acting responsibly and earning the lasting loyalty of our people, customers, shareholders and communities Our purpose Our how To help people and Everything we do should be businesses
Slide 29: Resilient business model leverages diversification and scale
Resilient business model leverages the Group’s diversification and scale to deliver more predictable results Diversification Scale Customer Focus % of Group’s 2019 2021 underlying profit1 Scaling from 1 to 6 9% Europe 34% 28% countries 2019 vs 2021 2019 vs 2021 revenue growth2 North America (o/w US)
Slide 30: Improving customer service and increasing connectivity
Improving customer service and increasing connectivity Investing in Tech… … and building common solutions Tech investment to transform the business… PagoNxt: common tech backbone for payments of Santander customers and open market €2bn/ year One Santander: Regional Consumer Finance platform in
Slide 31: Disciplined capital allocation strategy
Disciplined capital allocation strategy to drive profitability improvement & maximize shareholder returns… 2021 2022E RoTE >13% Capital accretive RWA’s growth below loan +1% < +4% RWA’s < low-single Capital generation... RWA’s loans growth digit growth growth2 ... to keep CET1FL ~12% Risk Risk adjus
Slide 32: Capital allocation leads to greater shareholder value creation
… leads 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
Slide 33: One Santander, PagoNxt, Digital Consumer Bank
ONE SANTANDER PAGONXT DIGITAL CONSUMER BANK 33
Slide 34: One Santander, PagoNxt, Digital Consumer Bank
ONE SANTANDER PAGONXT DIGITAL CONSUMER BANK 34
Slide 35: One Europe, structural change delivering sustainable profitability
One Europe, structural change delivering sustainable profitability Strategic focus 2022 Targets 2022 Region Targets RoTE2 RWA’s C/I Profitable growth from individual (%) Allocation1 (%) customers >12% 3 Spain >11% 45% ~45% SMEs value proposition leveraging PagoNxt RoTE2 Disciplined capital all
Slide 36: North America: stronger synergies increasing profitability
North America: stronger synergies increasing profitability Strategic focus 2022 Targets 2022 Region Targets Positioned to deliver above cost of capital returns across core businesses RoTE1 RWA’s C/I (%) Allocation (%) Refocusing US on our market leading consumer franchise Simplifying: discipli
Slide 37: Core businesses will generate through-the-cycle >15% RoTE
Core businesses will generate through-the-cycle >15% RoTE1 Strategic Strategic focus focus 2022 US Targets Market-leading consumer finance franchise funded by attractive Consumer consumer deposits ~19% Commercial Top 10 CRE and Multifamily lender RoTE1 CIB Global hub for capital markets and investme
Slide 38: South America: high profitability with structural growth
South America: high profitability with structural growth Strategic focus 2022 Targets 2022 Region Targets RoTE1 RWA’s C/I Double-digit growth on Retail segments (%) Allocation (%) Leading regional Consumer Finance ~25% Brazil >26% 70% ~30% RoTE1 Accelerate connectivity in Corporate and SCIB se
Slide 39: One Santander, PagoNxt, Digital Consumer Bank
ONE SANTANDER PAGONXT DIGITAL CONSUMER BANK 39
Slide 40: PagoNxt: global payments platform targeting 50% revenue growth
Our global payments platform for our customers and open market targeting 50% revenue growth in 2022 And following additional targets: Payments Merchant Acquiring International Trade 26mn 8 1.6mn 16k >30% Customers Countries Active Active SMEs & Total Group merchants Corp. customers Int. payments >3b
Slide 41: One Santander, PagoNxt, Digital Consumer Bank
ONE SANTANDER PAGONXT DIGITAL CONSUMER BANK 41
Slide 42: Digital Consumer Bank: strong momentum and 2022 targets
Our Digital Consumer Bank: strong momentum in 2021 & continued progress in 2022 with the following targets Largest full service global Consumer financing Auto/mobility digital bank Will serve more than 85k offline and Auto loan and leasing business serving OEMs Will serve 1.9mn customers e-commerce
Slide 43: Agenda: Financial Targets and Key Takeaways
1. 2021 2. Value Creation & 3. Financial Targets Performance Strategic Priorities and Key Takeaways
Slide 44: On track to reach our 2019 ID commitments in 2022
On track to reach our 2019 ID commitments in 2022 2019 ID 2021 Our 2022 targets medium-term targets ~45% C/I ratio 42-45% 46.2% Mid-single digit Revenue growth4 €1bn efficiencies in Europe RoTE 13-15% 12.7%1 >13% CET1 FL 11-12% 12.0%2 ~12% Payout 40-50% ~40%3 40%5 1) Underlying 2) Including acquisit
Slide 45: Advancing towards our ESG commitments
Advancing towards our ESG commitments 2021 Our targets €61bn €120bn by 2025 Green finance raised & facilitated Green finance raised & facilitated Supporting the green transition1 Leaders in renewable PF Thermal coal exposure to 0 & aligning power generation portfolio to Paris by 2030 Carbon neutral
Slide 46: Medium-term Group targets, Investor Day 2023
Medium-term Group targets Investor Day 2023 ~15% ~40% ~12% RoTE Efficiency CET1 FL 46
Slide 47: 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 48: Appendix
«> Santander Appendix 48
Slide 49: Appendix contents
Appendix Other countries and Corporate Centre Balance sheet and capital management Yield on loans and cost of deposits Responsible banking NPL and coverage ratios and cost of credit Quarterly income statements Glossary 49
Slide 50: Europe: Portugal and Poland
Europe Portugal Poland Setting foundations to outperform market leadership: Strong growth in volumes and revenue. Latest interest strong growth in new lending to individuals and WM&I rate hikes should support revenue growth Net operating income growth, supported by 5% cost Net operating income after
Slide 51: South America: Argentina, Uruguay and Andean region
South America Argentina Uruguay and Andean region Business diversification: agro-branches, Superdigital, High profitability supported by strong customer loyalty, Getnet, alliances in consumer and further digitalization leading to greater transactionality and digitalization Loan growth boosted by ind
Slide 52: Corporate Centre
Corporate Centre 2021 Highlights Income statement Lower revenue affected by the positive impact of P&L* 2021 2020 FX hedging in 2020 NII -1,390 -1,374 Gains/Losses on financial Significantly lower provisions due to charges in transactions -140 287 2020 for certain holdings whose valuation was Operat
Slide 53: Appendix contents
Appendix Other countries and Corporate Centre Balance sheet and capital management Yield on loans and cost of deposits Responsible banking NPL and coverage ratios and cost of credit Quarterly income statements Glossary 53
Slide 54: Well-funded, diversified, highly liquid balance sheet
Well-funded, diversified, prudent and highly liquid balance sheet (large % contribution from customer deposits), reflected in solid liquidity ratios Liquidity Balance Sheet EUR bn, Dec-21 Liquidity Coverage Net Stable Funding 1,291 1,291 Ratio (LCR) Ratio (NSFR) Loans and Customer 1 deposits Dec-21
Slide 55: Conservative and decentralized liquidity and funding model
Conservative and decentralized liquidity and funding model EUR 29 bn1 issued in public markets in 2021 Very manageable maturity profile EUR bn, Dec-21 EUR bn, Dec-21 16.4 12.2 Covered 7.8 6.8 11.3 Bonds 3.4 3.6 3.9 3.7 3.3 1.2 12.9 0.3 10.6 10.3 2.2 Senior 7.3 7.5 4.5 0.2 8.0 2.6 2.7 4.6 0.9 18.3 0.
Slide 56: Interest rate risk hedging
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 EUR mn, Nov-21 %, Dec-21 +100 bps -100 bps Other SCF, S.Am., 3% 6% Spa
Slide 57: 2021 Issuances against funding plan
2021 Issuances against funding plan Execution of 2021 funding plan EUR bn, Dec-21 Snr Non-Preferred + Hybrids Covered Bonds TOTAL Snr Plan Issued Plan Issued Plan Issued Plan Issued 4.9 2 1 Santander S.A 8-10 9.6 2-3 - - 10-13 14.5 SCF 3-4 2.2 - - 0-1 - 3-5 2.2 UK 2.5-3.5 3.5 - - - - 2.5-3.5 3.5 SHU
Slide 58: Capital levels exceed minimum regulatory requirements
Santander’s capital levels, both phased-in and fully loaded, exceed minimum regulatory requirements SREP capital requirements and MDA* Assumed capital requirements (fully-loaded)** Dec-21 Dec-21 16.81% 16.41% 2.57% +380 bps T2 >15% 13.01% 2.62% 1.73% AT1 13.01% +340 bps 2.00% T2 T2 2.38% 1.67% T2 1.
Slide 59: TLAC/MREL for the Resolution Group
TLAC/MREL for the Resolution Group headed by Banco Santander, S.A. TLAC Dec-21(e) MREL Dec-21(e) % % and EUR bn 131.6 26.9% 35.4% 11.9 Senior Req. 2022 18.5% Req. 2021 11.9% 29.85%3 + 28.2 SNP 16%2 + CBR 2.78%4 1.7 Sub debt CBR 3.51% Req. 2022 11.2 T2 13.82% 8.8 T1 Req. 2021 6%2 69.7 CET1 % RWA1 % L
Slide 60: Appendix contents
Appendix Other countries and Corporate Centre Balance sheet and capital management Yield on loans and cost of deposits Responsible banking NPL and coverage ratios and cost of credit Quarterly income statements Glossary 60
Slide 61: Yield on loans (%)
Yield on loans (%) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Europe 2.30 2.12 2.06 2.09 2.08 2.04 2.00 2.00 Spain 1.99 1.86 1.82 1.85 1.85 1.80 1.68 1.66 United Kingdom 2.49 2.35 2.32 2.36 2.33 2.32 2.33 2.29 Portugal 1.63 1.57 1.57 1.51 1.46 1.40 1.36 1.35 Poland 4.04 3.34 2.95 2.89 2.91 2.91
Slide 62: Cost of deposits (%)
Cost of deposits (%) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Europe 0.36 0.25 0.14 0.12 0.11 0.08 0.07 0.07 Spain 0.06 0.04 0.04 0.04 0.04 0.03 0.03 0.03 United Kingdom 0.69 0.52 0.29 0.23 0.21 0.15 0.11 0.11 Portugal 0.08 0.06 0.05 0.03 0.02 0.02 0.02 0.01 Poland 0.65 0.42 0.14 0.09 0.05 0.
Slide 63: Appendix contents
Appendix Other countries and Corporate Centre Balance sheet and capital management Yield on loans and cost of deposits Responsible banking NPL and coverage ratios and cost of credit Quarterly income statements Glossary 63
Slide 64: All ESG commitments for 2021 achieved
All ESG commitments for 2021 achieved Future commitments include decarbonization targets 2018 2019 2020 2021 2021 target 2025/ 2030 target • Single use plastic free 75% 98% 100% 100% • Top 10 Company to work for 4 5 6 6 6 • Scholarships, internships & entrepreneurships 69 k 225 k 389 k 325 k • Peopl
Slide 65: Appendix contents
Appendix Other countries and Corporate Centre Balance sheet and capital management Yield on loans and cost of deposits Responsible banking NPL and coverage ratios and cost of credit Quarterly income statements Glossary 65
Slide 66: Stage coverage
Stage coverage Exposure ¹ Coverage Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Stage 1 891 878 862 864 885 904 912 929 0.6% 0.6% 0.6% 0.5% 0.5% 0.5% 0.5% 0.5% Stage 2 53 61 60 69 70 70 67 71 8.2% 7.7% 8.8% 8.5% 8.1% 8.2% 8.6% 7.7% S
Slide 67: NPL ratio (%)
NPL ratio (%) Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Europe 3.37 3.41 3.29 3.34 3.26 3.30 3.15 3.12 Spain 6.88 6.55 5.98 6.23 6.18 6.22 5.99 5.77 United Kingdom 0.99 1.10 1.33 1.24 1.35 1.30 1.27 1.43 Portugal 4.56 4.43 4.25 3.89 3.84 3.71 3.44 3.44 Poland 4.29 4.57 4.58 4.74 4.82 4
Slide 68: Total coverage ratio (%)
Total coverage ratio (%) Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Europe 47.0 46.5 48.7 50.3 50.0 48.4 51.1 49.4 Spain 44.6 43.3 46.0 47.1 47.2 46.0 48.8 52.2 United Kingdom 39.7 42.8 41.6 44.7 40.5 37.4 36.6 25.8 Portugal 59.0 60.9 64.3 66.5 69.2 73.0 75.5 71.7 Poland 68.1 69.0 70.8
Slide 69: Credit impaired loans and loan-loss allowances
Credit impaired loans and loan-loss allowances. Breakdown by operating areas. December 2021 Credit impaired loans Loan-loss allowances Digital Consumer Digital Consumer Bank, 7.7% Bank, 11.3% Other South America, 0.5% Argentina, 0.6% Other South America, 0.7% Chile, 5.7% Argentina, 1.3% Spain, 28.1%
Slide 70: Cost of credit (%)
Cost of credit (%) Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Europe 0.36 0.41 0.48 0.58 0.51 0.49 0.48 0.39 Spain 0.64 0.68 0.80 1.01 0.91 1.00 1.01 0.92 United Kingdom 0.14 0.22 0.26 0.27 0.21 0.09 0.01 (0.09) Portugal 0.23 0.30 0.42 0.51 0.38 0.41 0.35 0.09 Poland 0.88 0.96 0.99 1.10
Slide 71: Appendix contents
Appendix Other countries and Corporate Centre Balance sheet and capital management Yield on loans and cost of deposits Responsible banking NPL and coverage ratios and cost of credit Quarterly income statements Glossary 71
Slide 72: Santander Group (EUR mn)
SANTANDER GROUP (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 8,487 7,715 7,773 8,019 7,956 8,240 8,458 8,716 +3.1% 31,994 33,370 +4.3% Net fee income 2,853 2,283 2,423 2,456 2,548 2,621 2,641 2,692 +1.9% 10,015 10,502
Slide 73: Santander Group (Constant EUR mn)
SANTANDER GROUP (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 7,658 7,496 7,837 8,180 8,048 8,258 8,381 8,683 +3.6% 31,172 33,370 +7.1% Net fee income 2,571 2,232 2,425 2,484 2,574 2,624 2,613 2,691 +3.0% 9,711
Slide 74: Europe (EUR mn)
Europe (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 2,378 2,330 2,534 2,670 2,645 2,751 2,744 2,812 +2.5% 9,911 10,952 +10.5% Net fee income 1,128 942 961 968 1,072 1,086 1,079 1,108 +2.7% 4,000 4,344 +8.6% Gains (loss
Slide 75: Europe (Constant EUR mn)
Europe (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 2,362 2,350 2,573 2,715 2,660 2,753 2,740 2,799 +2.2% 10,000 10,952 +9.5% Net fee income 1,120 944 965 972 1,074 1,085 1,079 1,106 +2.6% 4,001 4,344 +8.6% Ga
Slide 76: Spain (EUR mn)
Spain (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 925 931 1,034 1,067 1,019 1,015 975 985 +1.0% 3,957 3,994 +0.9% Net fee income 643 535 562 573 587 617 616 661 +7.2% 2,314 2,482 +7.3% Gains (losses) on financial tran
Slide 77: United Kingdom (EUR mn)
United Kingdom (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 820 796 905 983 1,001 1,100 1,168 1,163 -0.4% 3,504 4,431 +26.5% Net fee income 190 94 115 96 120 117 114 82 -27.8% 494 434 -12.3% Gains (losses) on financial
Slide 78: United Kingdom (Constant EUR mn)
United Kingdom (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 822 821 951 1,030 1,017 1,104 1,163 1,148 -1.3% 3,625 4,431 +22.3% Net fee income 190 99 121 102 122 118 113 81 -28.9% 511 434 -15.2% Gains (losses)
Slide 79: United Kingdom (GBP mn)
United Kingdom (GBP mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 706 706 818 885 874 948 1,000 987 -1.3% 3,115 3,809 +22.3% Net fee income 163 85 104 87 105 101 97 69 -28.9% 440 373 -15.2% Gains (losses) on financial transa
Slide 80: Portugal (EUR mn)
Portugal (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 202 197 193 195 193 192 185 181 -1.9% 787 751 -4.6% Net fee income 101 90 94 103 99 110 115 116 +0.8% 388 441 +13.7% Gains (losses) on financial transactions and ot
Slide 81: Poland (EUR mn)
Poland (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 296 251 246 243 240 250 251 309 +23.1% 1,037 1,049 +1.2% Net fee income 116 104 112 120 127 126 133 132 -0.3% 452 518 +14.5% Gains (losses) on financial transactions
Slide 82: Poland (Constant EUR mn)
Poland (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 280 249 240 240 239 248 251 312 +24.2% 1,009 1,049 +4.0% Net fee income 110 102 109 118 126 125 133 134 +0.8% 440 518 +17.7% Gains (losses) on financial tran
Slide 83: Poland (PLN mn)
Poland (PLN mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 1,279 1,134 1,095 1,096 1,090 1,131 1,145 1,423 +24.2% 4,604 4,790 +4.0% Net fee income 503 467 498 541 576 573 606 610 +0.8% 2,009 2,365 +17.7% Gains (losses) on fin
Slide 84: Other Europe (EUR mn)
Other Europe (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 134 155 155 182 192 195 165 174 +5.0% 627 726 +15.9% Net fee income 78 120 78 75 138 115 101 117 +15.4% 351 470 +33.9% Gains (losses) on financial transactions
Slide 85: Other Europe (Constant EUR mn)
Other Europe (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 133 152 155 183 193 195 166 173 +4.1% 623 726 +16.7% Net fee income 76 118 79 75 139 115 101 115 +13.6% 348 470 +35.2% Gains (losses) on financial tran
Slide 86: North America (EUR mn)
North America (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 2,261 2,079 2,076 2,055 2,005 2,010 2,070 2,119 +2.4% 8,470 8,204 -3.1% Net fee income 464 405 413 402 451 410 386 397 +2.7% 1,684 1,644 -2.4% Gains (losses) o
Slide 87: North America (Constant EUR mn)
North America (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 2,093 2,028 2,113 2,083 2,045 2,041 2,054 2,064 +0.5% 8,317 8,204 -1.4% Net fee income 429 402 426 408 460 415 381 387 +1.5% 1,665 1,644 -1.3% Gains (
Slide 88: United States (EUR mn)
United States (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 1,462 1,429 1,406 1,348 1,337 1,326 1,359 1,383 +1.7% 5,645 5,405 -4.2% Net fee income 250 215 218 206 241 191 174 176 +1.3% 889 782 -12.0% Gains (losses) on f
Slide 89: United States (Constant EUR mn)
United States (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 1,364 1,331 1,391 1,360 1,363 1,353 1,354 1,335 -1.4% 5,446 5,405 -0.8% Net fee income 233 200 216 209 245 195 173 169 -2.1% 858 782 -8.8% Gains (loss
Slide 90: United States (USD mn)
United States (USD mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 1,612 1,573 1,644 1,608 1,611 1,599 1,601 1,578 -1.4% 6,437 6,389 -0.8% Net fee income 275 237 255 247 290 231 204 200 -2.1% 1,014 925 -8.8% Gains (losses) on
Slide 91: Mexico (EUR mn)
Mexico (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 798 650 669 707 667 684 711 736 +3.5% 2,825 2,799 -0.9% Net fee income 211 185 189 188 204 210 203 211 +3.9% 772 828 +7.3% Gains (losses) on financial transactions an
Slide 92: Mexico (Constant EUR mn)
Mexico (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 729 697 722 722 682 688 700 728 +4.1% 2,870 2,799 -2.5% Net fee income 193 197 203 192 208 212 199 208 +4.5% 784 828 +5.6% Gains (losses) on financial transa
Slide 93: Mexico (MXN mn)
Mexico (MXN mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 17,484 16,706 17,310 17,322 16,360 16,503 16,783 17,466 +4.1% 68,822 67,113 -2.5% Net fee income 4,617 4,719 4,868 4,596 4,995 5,077 4,781 4,998 +4.5% 18,799 19,851 +
Slide 94: Other North America (EUR mn)
Other North America (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income (0) 0 0 0 0 0 0 0 +47.8% 1 0 -26.9% Net fee income 4 5 7 8 7 8 9 10 +2.4% 24 34 +41.7% Gains (losses) on financial transactions and other 2 (1) (2) (0) (
Slide 95: Other North America (Constant EUR mn)
Other North America (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income (0) 0 0 0 0 0 0 0 +47.8% 1 0 -26.9% Net fee income 4 5 7 8 7 8 9 10 +2.4% 24 34 +41.7% Gains (losses) on financial transactions and other 2 (1)
Slide 96: South America (EUR mn)
South America (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 3,065 2,606 2,486 2,566 2,575 2,760 2,920 3,069 +5.1% 10,723 11,323 +5.6% Net fee income 1,077 779 848 885 842 928 956 995 +4.1% 3,589 3,721 +3.7% Gains (losse
Slide 97: South America (Constant EUR mn)
South America (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 2,420 2,404 2,464 2,642 2,608 2,746 2,862 3,107 +8.6% 9,930 11,323 +14.0% Net fee income 839 728 833 903 856 926 933 1,005 +7.7% 3,303 3,721 +12.7% Ga
Slide 98: Brazil (EUR mn)
Brazil (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 2,270 1,813 1,756 1,786 1,780 1,919 2,083 2,093 +0.5% 7,625 7,875 +3.3% Net fee income 869 614 664 677 632 698 696 701 +0.7% 2,824 2,728 -3.4% Gains (losses) on finan
Slide 99: Brazil (Constant EUR mn)
Brazil (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 1,742 1,683 1,737 1,796 1,843 1,919 2,016 2,097 +4.0% 6,958 7,875 +13.2% Net fee income 667 577 654 679 654 698 673 702 +4.4% 2,577 2,728 +5.9% Gains (losses
Slide 100: Brazil (BRL mn)
Brazil (BRL mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 11,100 10,725 11,066 11,446 11,744 12,228 12,847 13,361 +4.0% 44,336 50,179 +13.2% Net fee income 4,250 3,679 4,167 4,324 4,169 4,450 4,285 4,476 +4.4% 16,420 17,381
Slide 101: Chile (EUR mn)
Chile (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 448 425 420 494 497 511 467 508 +8.8% 1,787 1,984 +11.0% Net fee income 92 74 74 94 95 96 104 100 -3.8% 335 394 +17.8% Gains (losses) on financial transactions and oth
Slide 102: Chile (Constant EUR mn)
Chile (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 443 428 427 499 484 492 475 533 +12.2% 1,797 1,984 +10.4% Net fee income 91 75 75 95 92 92 105 105 -0.2% 336 394 +17.2% Gains (losses) on financial transactio
Slide 103: Chile (CLP mn)
Chile (CLP mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 397,015 384,057 383,394 447,669 433,780 441,721 426,106 478,032 +12.2% 1,612,135 1,779,638 +10.4% Net fee income 81,770 67,170 67,421 85,452 82,698 82,631 94,239 94,05
Slide 104: Argentina (EUR mn)
Argentina (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 241 261 218 192 204 235 268 362 +35.0% 912 1,070 +17.3% Net fee income 76 56 70 71 74 87 110 149 +34.5% 273 420 +53.9% Gains (losses) on financial transactions and
Slide 105: Argentina (Constant EUR mn)
Argentina (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 146 196 212 255 189 240 268 373 +39.4% 809 1,070 +32.2% Net fee income 46 44 65 87 69 89 110 153 +38.8% 242 420 +73.5% Gains (losses) on financial transac
Slide 106: Argentina (ARS mn)
Argentina (ARS mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 16,991 22,846 24,646 29,613 22,035 27,866 31,122 43,387 +39.4% 94,096 124,410 +32.2% Net fee income 5,327 5,132 7,611 10,109 7,977 10,342 12,802 17,770 +38.8% 28,1
Slide 107: Other South America (EUR mn)
Other South America (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 106 107 91 94 93 93 102 106 +3.6% 399 395 -1.0% Net fee income 40 34 40 43 41 46 45 46 +1.2% 158 179 +13.3% Gains (losses) on financial transactions and
Slide 108: Other South America (Constant EUR mn)
Other South America (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 89 96 88 92 92 95 103 105 +1.8% 365 395 +8.0% Net fee income 35 31 39 42 41 47 45 45 -0.5% 147 179 +21.5% Gains (losses) on financial transactio
Slide 109: Digital Consumer Bank (EUR mn)
Digital Consumer Bank (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 1,088 1,054 1,048 1,073 1,056 1,075 1,077 1,074 -0.3% 4,263 4,281 +0.4% Net fee income 192 163 211 205 188 206 222 204 -7.8% 771 821 +6.4% Gains (losse
Slide 110: Digital Consumer Bank (Constant EUR mn)
Digital Consumer Bank (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 1,087 1,068 1,059 1,085 1,059 1,073 1,079 1,070 -0.8% 4,299 4,281 -0.4% Net fee income 192 164 211 205 189 206 222 204 -7.8% 772 821 +6.4% Gai
Slide 111: Corporate Centre (EUR mn)
Corporate Centre (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income (304) (354) (371) (345) (324) (355) (354) (357) +1.1% (1,374) (1,390) +1.2% Net fee income (9) (6) (11) (3) (5) (8) (2) (12) — (29) (28) -5.4% Gains (losses
Slide 112: Retail Banking (EUR mn)
Retail Banking (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 8,004 7,272 7,280 7,500 7,472 7,766 7,968 8,183 +2.7% 30,056 31,389 +4.4% Net fee income 2,058 1,536 1,707 1,685 1,709 1,753 1,746 1,801 +3.2% 6,987 7,010 +0.
Slide 113: Retail Banking (Constant EUR mn)
Retail Banking (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 7,252 7,084 7,348 7,646 7,559 7,781 7,898 8,151 +3.2% 29,329 31,389 +7.0% Net fee income 1,845 1,501 1,709 1,705 1,727 1,753 1,726 1,803 +4.5% 6,759
Slide 114: Corporate & Investment Banking (EUR mn)
Corporate & Investment Banking (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 677 705 771 765 720 739 747 788 +5.4% 2,918 2,995 +2.6% Net fee income 402 405 360 375 466 434 435 416 -4.4% 1,542 1,750 +13.5% Gains (losses)
Slide 115: Corporate & Investment Banking (Constant EUR mn)
Corporate & Investment Banking (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 609 677 768 778 724 742 742 788 +6.2% 2,832 2,995 +5.8% Net fee income 367 397 358 381 470 435 431 415 -3.8% 1,504 1,750 +16.4% Gains
Slide 116: Wealth Management & Insurance (EUR mn)
Wealth Management & Insurance (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 109 93 92 100 88 91 96 100 +4.6% 394 375 -4.9% Net fee income 308 269 279 296 297 316 321 343 +6.8% 1,153 1,276 +10.7% Gains (losses) on financ
Slide 117: Wealth Management & Insurance (Constant EUR mn)
Wealth Management & Insurance (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 101 89 93 102 89 92 95 99 +4.3% 385 375 -2.5% Net fee income 292 265 280 298 299 317 320 341 +6.7% 1,135 1,276 +12.5% Gains (losses) o
Slide 118: PagoNxt (EUR mn)
PagoNxt (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 0 (1) 0 (0) (1) (1) 0 3 — (1) 1 — Net fee income 94 78 88 103 81 127 141 144 +2.7% 362 493 +36.3% Gains (losses) on financial transactions and other 7 (3) (8) (2) (1
Slide 119: PagoNxt (Constant EUR mn)
PagoNxt (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 0 (0) 0 (0) (1) (1) 0 3 — (0) 1 — Net fee income 76 75 88 103 83 128 138 144 +4.6% 343 493 +43.9% Gains (losses) on financial transactions and other 7 (3) (
Slide 120: Appendix contents
Appendix Other countries and Corporate Centre Balance sheet and capital management Yield on loans and cost of deposits Responsible banking NPL and coverage ratios and cost of credit Quarterly income statements Glossary 120
Slide 121: Glossary - Acronyms
Glossary - Acronyms ❑ ALCO: Assets and Liabilities Committee ❑ FY: Full year ❑ RoRWA: Return on risk-weighted assets ❑ AT1: Additional Tier 1 ❑ HTC&S: Held to collect and sell ❑ RoTE: Return on tangible equity ❑ AuM: Assets under Management ❑ IFRS 9: International Financial Reporting ❑ RWA: Risk-wei
Slide 122: Glossary - Definitions
Glossary - Definitions PROFITABILITY AND EFFICIENCY ✓ RoTE: Return on tangible capital: Group attributable profit / average of: net equity (excluding minority interests) – intangible assets (including goodwill) ✓ RoRWA: Return on risk-weighted assets: consolidated profit / average risk-weighted asse
Slide 123: 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: