Banco Santander, S.a. · BME:SAN
Banco Santander — H1 2021 Earnings Presentation
110 slides from Banco Santander's earnings presentation, Jul 28, 2021
Slide 1: Form 6-K cover page
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, 2021 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 2021 Earnings presentation
Slide 3: H1'21 Earnings Presentation
H1’21 Earnings Presentation All. Together. Now. 28 July 2021
Slide 4: Important information
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
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 Highlights and Group performance Appendix 3 Business areas review Key takeaways 2 4
Slide 7: H1'21 Highlights
5 H1’21 Highlights Note: changes in constant euros (1) Q1’21: -EUR 530 mn (net of tax) mainly due to expected restructuring charges for FY21 (2) As indicated by the consolidating supervisor, a pay-out of 50%, the maximum within the target range (40%-50%), was applied for the calculation of the capit
Slide 8: Greater revenue generation and improved efficiency driven by digitalization
6 Greater revenue generation (+8% YoY) and improved efficiency driven by increased digitalization Total customers 150 mn +3% # Digital transactions 1,757 mn +38% Top 3 NPS in 7 markets Digital sales 52% +8 pp H1’21 and YoY changes Efficiency 45.7% -159 bps Total income >EUR 22 bn +8% Net operating i
Slide 9: H1 underlying profit of EUR 4.2 billion
7 EUR million H1'21 H1'20 Euros Constant euros NII 16,196 16,202 0 8 Net fee income 5,169 5,136 1 8 Trading and other income 1,330 1,180 13 20 Total income 22,695 22,518 1 8 Operating expenses -10,377 -10,653 -3 3 Net operating income 12,318 11,865 4 13 LLPs -3,753 -7,027 -47 -42 Other results -937
Slide 10: Customer revenue and lower LLPs drove profit increase QoQ
8 3,503 2,984 2,575 2,659 2,004 1,749 Q1'20 Q2 Q3 Q4 Q1'21 Q2 Positive customer revenue performance and continued LLP reduction drove profit increase QoQ excluding SRF contribution1 Note: data in constant euros 5,127 4,940 5,086 5,298 5,132 5,245 Costs +2% QoQ LLPs -13% QoQ 455 652 885 516 888 442 2
Slide 11: NII 8% higher than H1'20
9 • Activity picked up in the quarter, with growth across regions: loans grew EUR 11 bn and deposits by EUR 12 bn • Margin management: repricing of liabilities (Europe, Mexico and Chile) and loan spreads improvement in the US, the UK and Poland • Average interest rates remained lower than H1’20, des
Slide 12: Fee activity recovered to pre-pandemic levels
10 Activity rebound Net fee income recovered to pre-pandemic levels, growing in higher value-added services and products Note: changes in constant euros (1) Gross written insurance premiums • Strong acquiring turnover recovery boosted by • Overall growth in cards turnover PoS turnover Cards turnover
Slide 13: Continued progress on driving efficiencies
11Note: South America excluding Argentina: +2.8% Continued progress on driving efficiencies (mainly in Europe: -800 bps YoY) despite accelerating inflation; costs declined -0.4% in real terms Europe -1.5% North America South America +6% +2% -1% +2% +6.7% +7.3% +5.3% Digital Consumer Bank -7% -2% -2%
Slide 14: Further improvement in cost of credit
12 Further improvement in cost of credit, with lower LLPs in most countries, notably Brazil, the US and the UK Loan-loss provisions Constant EUR bn 3.5 3.0 2.6 2.7 2.0 1.7 Q1'20 Q2 Q3 Q4 Q1'21 Q2 Credit quality indicators Jun-20 Mar-21 Jun-21 Cost of credit1 NPL ratio Coverage ratio Note: exposure a
Slide 15: Increased profitability and TNAV per share
13 5.4% 7.4% 12.6% H1'20 2020 H1'21 Our strong operating performance resulted in increased profitability and TNAVps… Statutory RoTE H1’20: 1.7%, 2020: 1.9% and H1’21: 11.8% Underlying RoTE EUR Underlying earnings per share TNAV per share EUR cents 9.4 22.7 H1'20 H1'21 Statutory earnings per share H1
Slide 16: Solid capital position, CET1 ratio evolution
14 …and continued organic generation, which enabled us to maintain our solid capital position Note: as indicated by the consolidating supervisor, a pay-out of 50%, the maximum within the target range (40%-50%), has been assumed for the calculation of the capital ratios in 2021. Previously, 40% cash
Slide 17: ESG: supporting the green transition
15 1.1 mn in H1’21; 6.0 mn since 2019 2025 goal: 10 mn ESG: supporting the green transition of our clients and building a more inclusive society, whilst we remain committed to our climate change goals Green finance mobilized EUR 1 bn in H1’21 Santander has issued to date: 3 Green bonds (EUR 3 bn) Sa
Slide 18: Index
16 Index 1 Group performance Appendix 3 Business areas review Key takeaways 2 4
Slide 19: Business and profit growth across geographies
17 Business and profit growth leveraging our geographic diversification Underlying att. profit (EUR mn) Net operating income (EUR mn) Europe South America North America H1’21 vs. H1’20 Underlying RoTE Customer deposits (EUR bn) Customer loans (EUR bn) Digital Consumer Bank Digital customers (mn) Dig
Slide 20: Spain
18 Spain Q2 affected by SRF contribution. Otherwise, total income +1% and net operating income +4% QoQ QoQ: fee income rebounded to pre-pandemic levels, ongoing cost control and we continued to strengthen our balance sheet in the face of recovery uncertainty H1’21 profit boosted by net operating inc
Slide 21: UK
19 UK VOLUMES1KEY DATA H1'21 vs. H1'20 Digital customers (mn) 6.4 +5% NPL ratio (%) 1.30 +20 bps Cost of credit (%) 0.09 -13 bps Efficiency ratio (%) 56.0 -1,346 bps Underlying RoTE (%) 10.6 +9.6 pp P&L* Q2'21 vs. Q1'21 H1'21 vs. H1'20 NII 1,100 8.5 2,100 29.0 Net fee income 117 -3.7 238 -16.9 Total
Slide 22: Brazil
20 Brazil VOLUMES1KEY DATA H1'21 vs. H1'20 Digital customers (mn) 17.5 +21% NPL ratio (%) 4.55 -52 bps Cost of credit (%) 3.51 -116 bps Efficiency ratio (%) 28.9 -290 bps Underlying RoTE (%) 22.1 +5.0 pp P&L* Q2'21 vs. Q1'21 H1'21 vs. H1'20 NII 1,919 4.1 3,700 9.8 Net fee income 698 6.7 1,330 8.7 To
Slide 23: USA
21 Profit grew YoY boosted by net operating income (+23% excluding Puerto Rico and Bluestem portfolio disposals) and significant LLP savings Revenue up YoY driven by lease income, NII (volumes and cost of funding) and fees (excluding disposals: NII +8%; fees +14%; total income +17%) Profit up QoQ ba
Slide 24: Mexico
22 Mexico VOLUMES1KEY DATA H1'21 vs. H1'20 Digital customers (mn) 5.1 +11% NPL ratio (%) 3.10 +60 bps Cost of credit (%) 2.74 -21 bps Efficiency ratio (%) 43.1 +361 bps Underlying RoTE (%) 13.3 -2.1 pp P&L* Q2'21 vs. Q1'21 H1'21 vs. H1'20 NII 684 0.9 1,352 -3.9 Net fee income 210 1.7 414 7.9 Total i
Slide 25: Digital Consumer Bank
23 New lending in H1’21 well above 2020 (+20% YoY) although covid-19 lockdowns had a significant impact in early 2021. Strong activity expected for H2 Profit up YoY favoured by revenue increase and cost of credit improvement. Higher costs due to technology investments and scaling capabilities Activi
Slide 26: Global businesses: Wealth Management & Insurance and CIB
24 Global businesses Wealth Management & Insurance P&L* Q2'21 vs. Q1'21 H1'21 vs. H1'20 Total income 519 3.1 1,021 6.2 Net operating income 293 3.6 574 7.6 Underlying att. profit 210 6.3 406 7.6 (*) EUR mn and % change in constant euros Another strong set of results in Q2’21, although the QoQ compar
Slide 27: PagoNxt: Merchant, Trade and Consumer solutions
25 •Getnet Brazil: strong commercial performance and gaining market share (15.5%). Listing expected before year-end1 •LatAm: global franchise expansion and product offerings gathering pace •Getnet Europe: pan-European acquirer readiness achieved, in production in Q2, will be accelerating new custome
Slide 28: Corporate Centre
26 Lower revenue affected by the positive impact of FX hedging in 2020 Downward trend in operating expenses continued (-4% YoY), driven by streamlining and simplification measures Significant lower provisions due to charges in H1’20 for certain holdings whose valuation was affected by the crisis Cor
Slide 29: Index
27 Index 1 Group performance Appendix 3 Business areas review Key takeaways 2 4
Slide 30: H1'21 Key takeaways
28 H1’21 Key takeaways Solid P&L performance Further revenue improvement Efficiency gains -159 bps Revenue +8% Underlying Profit EUR 4.2 bn Lower cost of credit 0.94% Volume growth and profitability improvement Volume growth YoY and QoQ CET1 above target (11-12%) CET1 12.11% RoTE higher than cost of
Slide 31: Index
29 Index 1 Group performance Appendix 3 Business areas review Key takeaways 2 4
Slide 32: Appendix
30 Primary segments and other countries 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 Appendix
Slide 33: Europe
31 Europe Accelerating One Santander transformation to deliver superior growth under a more efficient operating model Revenue increased YoY driven by NII (UK and Spain), ALCO sales in Portugal and CIB Strong efficiency improvement as a result of the ongoing optimization plans Cost of credit normaliz
Slide 34: Portugal
32 Portugal 40 45 Loans Funds VOLUMES1KEY DATA H1'21 vs. H1'20 Digital customers (k) 981 +13% NPL ratio (%) 3.71 -72 bps Cost of credit (%) 0.41 +11 bps Efficiency ratio (%) 39.6 -474 bps Underlying RoTE (%) 11.9 +3.4 pp P&L* Q2'21 vs. Q1'21 H1'21 vs. H1'20 NII 192 -0.5 384 -3.8 Net fee income 110 1
Slide 35: Poland
33 Poland VOLUMES2KEY DATA H1'21 vs. H1'20 Digital customers (k) 2,850 +8% NPL ratio (%) 4.58 +1 bps Cost of credit (%) 0.88 -9 bps Efficiency ratio (%) 41.5 -87 bps Underlying RoTE (%) 3.3 -1.3 pp P&L* Q2'21 vs. Q1'21 H1'21 vs. H1'20 NII 250 3.7 490 -7.9 Net fee income 126 -0.6 253 18.4 Total incom
Slide 36: North America
34 North America P&L* Q2'21 vs. Q1'21 H1'21 vs. H1'20 NII 2,010 -0.2 4,015 -0.8 Net fee income 410 -9.8 861 5.3 Total income 2,719 -2.2 5,487 4.0 Operating expenses -1,194 3.5 -2,343 6.7 Net operating income 1,525 -6.3 3,145 2.1 LLPs -195 -51.1 -588 -73.2 Underlying PBT 1,338 10.6 2,545 204.6 Underl
Slide 37: South America
35 South America KEY DATA H1'21 vs. H1'20 Digital customers (mn) 22.7 +20% NPL ratio (%) 4.36 -37 bps Cost of credit (%) 2.51 -98 bps Efficiency ratio (%) 34.4 -82 bps Underlying RoTE (%) 20.3 +3.9 pp P&L* Q2'21 vs. Q1'21 H1'21 vs. H1'20 NII 2,760 5.3 5,334 11.1 Net fee income 928 8.2 1,770 13.9 Tot
Slide 38: Chile
36 Chile VOLUMES1KEY DATA H1'21 vs. H1'20 Digital customers (k) 1,867 +39% NPL ratio (%) 4.57 -42 bps Cost of credit (%) 1.07 -39 bps Efficiency ratio (%) 38.4 -189 bps Underlying RoTE (%) 18.6 +7.4 pp P&L* Q2'21 vs. Q1'21 H1'21 vs. H1'20 NII 511 1.8 1,009 12.1 Net fee income 96 -0.1 190 11.0 Total
Slide 39: Argentina
37 Argentina VOLUMES1KEY DATA H1'21 vs. H1'20 Digital customers (k) 2,716 +6% NPL ratio (%) 3.34 +19 bps Cost of credit (%) 3.94 -173 bps Efficiency ratio (%) 62.0 +806 bps Underlying RoTE (%) 23.9 -4.8 pp P&L* Q2'21 vs. Q1'21 H1'21 vs. H1'20 NII 235 26.5 440 25.3 Net fee income 87 29.6 161 75.1 Tot
Slide 40: Uruguay and Andean region
38 Uruguay and Andean region PERUURUGUAY COLOMBIA Underlying attributable profit 59 51 H1'20 H1'21 20 26 H1'20 H1'21 9 12 H1'20 H1'21 22% RoTE 22% RoTE 16% RoTE -14% +29% +34% Note: year-on-year changes, constant EUR mn High profitability sustained across all countries supported by stronger customer
Slide 41: Appendix
39 Primary segments and other countries 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 Appendix
Slide 42: Retail Banking
40 Retail Banking ACTIVITY P&L* Q2'21 vs. Q1'21 H1'21 vs. H1'20 NII 7,766 3.0 15,238 7.0 Net fee income 1,753 1.6 3,462 4.1 Total income 9,811 1.9 19,347 7.9 Operating expenses -4,247 1.6 -8,404 1.0 Net operating income 5,564 2.2 10,942 13.8 LLPs -1,726 -4.5 -3,509 -43.5 Underlying PBT 3,375 4.4 6,5
Slide 43: Corporate & Investment Banking
41 1,165 852 793 1282,493 2,938 H1'20 H1'21 Global Transactional Banking Global Debt Financing Markets Other Continued strategy execution to strengthen our position as a strategic advisor Increased our participation in green and ESG bonds, with a total volume of EUR 6.2 bn Profit boosted by strong r
Slide 44: Wealth Management & Insurance
42 Wealth Management & Insurance P&L* Q2'21 vs. Q1'21 H1'21 vs. H1'20 NII 91 2.8 179 -4.7 Net fee income 316 6.0 612 10.6 Total income 519 3.1 1,021 6.2 Operating expenses -227 2.4 -447 4.4 Net operating income 293 3.6 574 7.6 LLPs -3 -50.0 -8 -29.0 Underlying PBT 288 5.3 561 8.2 Underlying att. pro
Slide 45: Appendix
43 Appendix Primary segments and other countries 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 46: Liquidity balance sheet
44 ST Funding Securitisations and others Equity and other liabilities Loans and advances to customers Financial assets Fixed assets & other Customer deposits M/LT debt issuances Note: Liquidity balance sheet for management purposes (net of trading derivatives and interbank balances) (1) Provisional
Slide 47: Funding issuances and maturity profile
45 10.4 2.6 1.9 0.0 2.1 1.6 5.1 2.5 3.7 0.1 1.9 2.1 Spain UK SCF USA Other 1.2 3.2 2.3 3.0 3.1 5.4 2021 2022 2023 2024 2025 2026+ 0.4 0.6 2.2 0.8 1.8 1.7 2021 2022 2023 2024 2025 2026+ EUR 8.8 bn1 issued in public markets in Q2’21 EUR bn, Jun-21 Very manageable maturity profile EUR bn, Jun-21 2021 2
Slide 48: Interest rate sensitivity and ALCO portfolios
46 (1) Parent bank (2) Ring-fenced bank (3) SBNA. SC USA has positive sensitivity under a -100 bp shift scenario *Note: different criteria vs. Q4’20 presentation: -100 bps sensitivities affected by removal of management floors. ALCO portfolios reflect our geographic diversificationMostly positive in
Slide 49: 2021 Funding plan and issuances
47 2021 Funding plan and issuances EUR bn, Jun-21 Issuances YTD against funding plan o The Financial Plan is focused on covering TLAC/MREL requirements, with no secured issuances, to: o continue building up TLAC/MREL buffers o pre-finance senior non-preferred / senior preferred transactions which lo
Slide 50: Capital levels versus regulatory requirements
48 Santander’s capital levels, both phased-in and fully loaded, exceed minimum regulatory requirements 4.50% 12.11% 0.84% 2.50% 1.00% CCyB; 0.01% 1.78% 1.56% 2.38% 2.15%13.01% 15.82% Regulatory Requirement 2020 Group ratios Jun-21 4.50% 11.70% 11-12% 0.84% 2.50% 1.00% CCyB; 0.01% 1.78% 1.51% 1.50%2.
Slide 51: TLAC Ratio
49 TLAC Ratio TLAC ratios for the Resolution Group headed by Banco Santander, S.A. March 21 figures show the Closing data, not the estimates shown in the first quarter earnings presentation TLAC ratio increased in the second quarter of 2021 from 25% to 25.2% of RWAs (compared with the fully-loaded T
Slide 52: Appendix
50 Appendix Primary segments and other countries 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: Yield on loans
51 Yield on loans (%) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Europe 2.30 2.12 2.06 2.09 2.08 2.04 Spain 1.99 1.86 1.82 1.85 1.85 1.80 United Kingdom 2.49 2.35 2.32 2.36 2.33 2.32 Portugal 1.63 1.57 1.57 1.51 1.46 1.40 Poland 4.04 3.34 2.95 2.89 2.91 2.91 North America 8.94 7.85 7.82 7.70 7.78 7.61 US 7
Slide 54: Cost of deposits
52 Cost of deposits (%) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Europe 0.36 0.25 0.14 0.12 0.11 0.08 Spain 0.06 0.04 0.04 0.04 0.04 0.03 United Kingdom 0.69 0.52 0.29 0.23 0.21 0.15 Portugal 0.08 0.06 0.05 0.03 0.02 0.02 Poland 0.65 0.42 0.14 0.09 0.05 0.03 North America 1.57 1.15 0.90 0.74 0.64 0.61 US
Slide 55: Appendix
53 Appendix Primary segments and other countries 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 56: Loans subject to moratoria
54 92% of moratoria has expired, with only 5% at stage 3. From the 8% still active, 71% is secured and most of it is in Europe 87% 71% 8 4 0 4 0 0 Total SMEs & Corporates Consumer Mortgages Europe South America North America Distribution of loans subject to moratoria Active moratoria as of 30th Jun
Slide 57: Exposure and coverage by stage
55(1) Exposure subject to impairment in EUR bn. Additionally, customer loans not subject to impairment recorded at mark to market with changes through P&L (EUR 31 bn in March 2020, EUR 35 bn in June 2020, EUR 29 bn in September 2020, EUR 25 bn in December 2020, EUR 27 bn in March 21 and EUR 26 bn in
Slide 58: NPL ratio
56 NPL ratio (%) Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Europe 3.37 3.41 3.29 3.34 3.26 3.30 Spain 6.88 6.55 5.98 6.23 6.18 6.22 United Kingdom 0.99 1.10 1.33 1.24 1.35 1.30 Portugal 4.56 4.43 4.25 3.89 3.84 3.71 Poland 4.29 4.57 4.58 4.74 4.82 4.58 North America 2.02 1.73 1.96 2.23 2.39 2.28 US
Slide 59: Total coverage ratio
57 Total coverage ratio (%) Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Europe 47.0 46.5 48.7 50.3 50.0 48.4 Spain 44.6 43.3 46.0 47.1 47.2 46.0 United Kingdom 39.7 42.8 41.6 44.7 40.5 37.4 Portugal 59.0 60.9 64.3 66.5 69.2 73.0 Poland 68.1 69.0 70.8 70.7 70.3 72.4 North America 170.1 206.5 201.6 182.
Slide 60: Credit impaired loans and loan-loss allowances by area
58 Credit impaired loans and loan-loss allowances. Breakdown by operating areas. June 2021 Spain, 26.6% UK, 5.4% Portugal, 4.7% Poland, 4.6% Other Europe, 1.1% USA, 16.0% Mexico, 4.2% Brazil, 18.5% Chile, 5.3% Argentina, 1.1% Other South America, 0.7% DCB, 11.9% Spain, 42.0% UK, 10.5%Portugal, 4.7%
Slide 61: Cost of credit
59 Cost of credit (%) Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Europe 0.36 0.41 0.48 0.58 0.51 0.49 Spain 0.64 0.68 0.80 1.01 0.91 1.00 United Kingdom 0.14 0.22 0.26 0.27 0.21 0.09 Portugal 0.23 0.30 0.42 0.51 0.38 0.41 Poland 0.88 0.96 0.99 1.10 1.02 0.88 North America 3.02 3.21 3.07 2.92 2.34 1.6
Slide 62: Appendix
60 Appendix Primary segments and other countries 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 63: Santander Responsible Banking goals
61 Santander Responsible Banking goals Note: H1’21 data not audited (1) Includes Santander overall contribution to green finance: project finance, syndicated loans, green bonds, capital finance, export finance, advisory, structuring and other products to help our clients in the transition to a low c
Slide 64: Appendix
62 Primary segments and other countries 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 Appendix
Slide 65: Santander Group (EUR mn)
63 SANTANDER GROUP (EUR mn) (*) Including: in Q1’20, restructuring costs in Q2’20, adjustment to the valuation of goodwill, adjustment has been made to deferred tax assets of the Spanish consolidated fiscal group and restructuring costs and other in Q4’20, restructuring costs and other in Q1’21, res
Slide 66: Santander Group (Constant EUR mn)
64 SANTANDER GROUP (Constant EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 7,604 7,444 7,782 8,127 7,993 8,203 15,048 16,196 Net fee income 2,555 2,218 2,410 2,470 2,559 2,610 4,773 5,169 Gains (losses) on financial transactions and other 455 652 885 516 888 442 1,107 1
Slide 67: Europe (EUR mn)
65 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 2,378 2,330 2,534 2,670 2,645 2,751 4,708 5,396 Net fee income 1,128 942 961 968 1,072 1,086 2,071 2,157 Gains (losses) on financial transactions and other 212 125 388 37 432 106 337 538 Total income 3,718 3,398 3,883 3,675 4,149
Slide 68: Europe (Constant EUR mn)
66 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 2,356 2,343 2,565 2,706 2,652 2,744 4,699 5,396 Net fee income 1,119 943 964 971 1,073 1,084 2,062 2,157 Gains (losses) on financial transactions and other 213 122 388 35 432 106 335 538 Total income 3,688 3,408 3,917 3,712 4,156
Slide 69: Spain (EUR mn)
67 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 925 931 1,034 1,067 1,019 1,015 1,856 2,034 Net fee income 643 535 562 573 587 617 1,178 1,204 Gains (losses) on financial transactions and other 220 96 204 (8) 178 62 316 240 Total income 1,789 1,562 1,800 1,632 1,785 1,693 3,35
Slide 70: United Kingdom (EUR mn)
68 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 820 796 905 983 1,001 1,100 1,616 2,100 Net fee income 190 94 115 96 120 117 284 238 Gains (losses) on financial transactions and other (3) 1 14 (31) (10) (6) (2) (16) Total income 1,007 891 1,034 1,048 1,111 1,211 1,898 2,322 Op
Slide 71: United Kingdom (GBP mn)
69 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 706 706 818 885 874 948 1,412 1,823 Net fee income 163 85 104 87 105 101 248 206 Gains (losses) on financial transactions and other (2) 1 13 (27) (8) (5) (2) (14) Total income 867 791 934 945 971 1,044 1,659 2,015 Operating expen
Slide 72: Portugal (EUR mn)
70 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 202 197 193 195 193 192 399 384 Net fee income 101 90 94 103 99 110 191 210 Gains (losses) on financial transactions and other 47 30 25 19 135 1 77 136 Total income 350 317 312 317 427 303 668 730 Operating expenses (151) (145) (
Slide 73: Poland (EUR mn)
71 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 296 251 246 243 240 250 547 490 Net fee income 116 104 112 120 127 126 220 253 Gains (losses) on financial transactions and other (48) 23 35 24 (10) 41 (25) 31 Total income 365 377 394 388 357 417 742 774 Operating expenses (172)
Slide 74: Poland (PLN mn)
72 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 1,279 1,134 1,095 1,096 1,090 1,131 2,413 2,221 Net fee income 503 467 498 541 576 573 970 1,149 Gains (losses) on financial transactions and other (206) 95 156 109 (46) 187 (111) 141 Total income 1,576 1,696 1,749 1,746 1,621 1,
Slide 75: Other Europe (EUR mn)
73 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 134 155 155 182 192 195 289 387 Net fee income 78 120 78 75 138 115 198 253 Gains (losses) on financial transactions and other (5) (24) 109 32 139 8 (29) 147 Total income 207 251 343 290 469 318 458 787 Operating expenses (222) (
Slide 76: Other Europe (Constant EUR mn)
74 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 133 151 155 182 192 195 284 387 Net fee income 75 118 78 75 138 114 193 253 Gains (losses) on financial transactions and other (6) (25) 109 32 139 9 (31) 147 Total income 202 244 342 289 469 318 445 787 Operating expenses (218) (
Slide 77: North America (EUR mn)
75 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 2,261 2,079 2,076 2,055 2,005 2,010 4,339 4,015 Net fee income 464 405 413 402 451 410 869 861 Gains (losses) on financial transactions and other 216 227 194 242 313 299 443 612 Total income 2,941 2,711 2,683 2,699 2,768 2,719 5,
Slide 78: North America (Constant EUR mn)
76 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 2,057 1,993 2,076 2,047 2,009 2,006 4,049 4,015 Net fee income 422 396 419 401 453 408 818 861 Gains (losses) on financial transactions and other 198 211 189 237 313 299 409 612 Total income 2,677 2,599 2,685 2,686 2,775 2,713 5,
Slide 79: United States (EUR mn)
77 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 1,462 1,429 1,406 1,348 1,337 1,326 2,891 2,663 Net fee income 250 215 218 206 241 191 465 432 Gains (losses) on financial transactions and other 217 157 206 247 324 318 374 641 Total income 1,929 1,801 1,830 1,801 1,902 1,835 3,
Slide 80: United States (USD mn)
78 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 1,612 1,573 1,644 1,608 1,611 1,599 3,185 3,210 Net fee income 275 237 255 247 290 231 512 521 Gains (losses) on financial transactions and other 239 173 240 291 390 383 412 773 Total income 2,126 1,983 2,139 2,145 2,290 2,213 4,
Slide 81: Mexico (EUR mn)
79 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 798 650 669 707 667 684 1,448 1,352 Net fee income 211 185 189 188 204 210 396 414 Gains (losses) on financial transactions and other (2) 70 (10) (4) (6) (16) 68 (23) Total income 1,007 905 848 891 865 878 1,912 1,743 Operating e
Slide 82: Mexico (MXN mn)
80 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 17,484 16,706 17,310 17,322 16,360 16,503 34,190 32,863 Net fee income 4,617 4,719 4,868 4,596 4,995 5,077 9,336 10,072 Gains (losses) on financial transactions and other (51) 1,658 (194) (91) (156) (399) 1,607 (556) Total income
Slide 83: Other North America (EUR mn)
81 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income (0) 0 0 0 0 0 0 0 Net fee income 4 5 7 8 7 8 9 14 Gains (losses) on financial transactions and other 2 (1) (2) (0) (5) (2) 1 (7) Total income 5 4 6 8 2 5 10 7 Operating expenses (6) (6) (13) (22) (28) (32) (12) (59) Net operating
Slide 84: Other North America (Constant EUR mn)
82 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income (0) 0 0 0 0 0 0 0 Net fee income 4 5 7 8 7 8 9 14 Gains (losses) on financial transactions and other 2 (1) (2) (0) (5) (2) 1 (7) Total income 5 4 6 8 2 5 10 7 Operating expenses (6) (6) (13) (22) (28) (32) (12) (59) Net operating
Slide 85: South America (EUR mn)
83 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 3,065 2,606 2,486 2,566 2,575 2,760 5,671 5,334 Net fee income 1,077 779 848 885 842 928 1,856 1,770 Gains (losses) on financial transactions and other 26 310 149 70 122 85 337 207 Total income 4,169 3,695 3,483 3,522 3,539 3,772
Slide 86: South America (Constant EUR mn)
84 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 2,408 2,395 2,454 2,635 2,598 2,736 4,803 5,334 Net fee income 832 722 826 896 850 920 1,553 1,770 Gains (losses) on financial transactions and other 24 275 147 72 125 82 300 207 Total income 3,264 3,392 3,428 3,603 3,573 3,738 6
Slide 87: Brazil (EUR mn)
85 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 2,270 1,813 1,756 1,786 1,780 1,919 4,083 3,700 Net fee income 869 614 664 677 632 698 1,483 1,330 Gains (losses) on financial transactions and other (3) 224 114 82 109 64 221 173 Total income 3,137 2,651 2,534 2,544 2,521 2,682
Slide 88: Brazil (BRL mn)
86 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 11,100 10,725 11,066 11,446 11,744 12,228 21,825 23,972 Net fee income 4,250 3,679 4,167 4,324 4,169 4,450 7,929 8,619 Gains (losses) on financial transactions and other (14) 1,196 703 538 718 402 1,182 1,120 Total income 15,336
Slide 89: Chile (EUR mn)
87 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 448 425 420 494 497 511 873 1,009 Net fee income 92 74 74 94 95 96 166 190 Gains (losses) on financial transactions and other 12 85 38 6 22 30 98 53 Total income 553 584 532 594 614 637 1,137 1,252 Operating expenses (230) (228)
Slide 90: Chile (CLP mn)
88 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 397,015 384,057 383,394 447,669 433,780 441,721 781,072 875,500 Net fee income 81,770 67,170 67,421 85,452 82,698 82,631 148,940 165,329 Gains (losses) on financial transactions and other 10,853 76,628 35,003 5,316 19,479 26,231
Slide 91: Argentina (EUR mn)
89 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 241 261 218 192 204 235 502 440 Net fee income 76 56 70 71 74 87 132 161 Gains (losses) on financial transactions and other 1 (8) (14) (36) (16) (22) (6) (38) Total income 318 310 274 226 262 301 628 563 Operating expenses (186)
Slide 92: Argentina (ARS mn)
90 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 16,991 22,846 24,646 29,613 22,035 27,866 39,837 49,901 Net fee income 5,327 5,132 7,611 10,109 7,977 10,342 10,459 18,318 Gains (losses) on financial transactions and other 89 (595) (1,349) (4,047) (1,686) (2,575) (506) (4,261)
Slide 93: Other South America (EUR mn)
91 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 106 107 91 94 93 93 213 186 Net fee income 40 34 40 43 41 46 74 88 Gains (losses) on financial transactions and other 16 9 11 19 7 13 24 19 Total income 162 149 143 157 141 152 311 293 Operating expenses (72) (65) (70) (78) (90)
Slide 94: Other South America (Constant EUR mn)
92 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 88 96 88 92 92 95 184 186 Net fee income 35 31 39 42 41 47 66 88 Gains (losses) on financial transactions and other 13 8 10 19 7 13 21 19 Total income 136 135 136 152 139 154 271 293 Operating expenses (61) (59) (67) (76) (89) (9
Slide 95: Digital Consumer Bank (EUR mn)
93 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 1,088 1,054 1,048 1,073 1,056 1,075 2,142 2,130 Net fee income 192 163 211 205 188 206 356 395 Gains (losses) on financial transactions and other 11 (4) 50 74 59 21 7 80 Total income 1,291 1,214 1,309 1,352 1,304 1,302 2,505 2,60
Slide 96: Digital Consumer Bank (Constant EUR mn)
94 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 1,087 1,068 1,058 1,084 1,058 1,073 2,154 2,130 Net fee income 192 164 211 205 189 206 356 395 Gains (losses) on financial transactions and other 11 (4) 51 75 59 21 7 80 Total income 1,290 1,228 1,320 1,364 1,306 1,300 2,517 2,60
Slide 97: Corporate Centre (EUR mn)
95 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income (304) (354) (371) (345) (324) (355) (658) (679) Net fee income (9) (6) (11) (3) (5) (8) (15) (13) Gains (losses) on financial transactions and other 9 47 110 96 (41) (67) 56 (107) Total income (304) (313) (271) (252) (370) (430)
Slide 98: Retail Banking (EUR mn)
96 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 8,004 7,272 7,280 7,500 7,472 7,766 15,276 15,238 Net fee income 2,058 1,536 1,707 1,685 1,709 1,753 3,595 3,462 Gains (losses) on financial transactions and other 108 263 444 165 355 292 371 647 Total income 10,171 9,071 9,431 9
Slide 99: Retail Banking (Constant EUR mn)
97 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 7,201 7,035 7,296 7,596 7,508 7,730 14,237 15,238 Net fee income 1,833 1,492 1,699 1,695 1,717 1,744 3,326 3,462 Gains (losses) on financial transactions and other 136 238 428 144 356 291 375 647 Total income 9,171 8,766 9,423 9,
Slide 100: Corporate & Investment Banking (EUR mn)
98 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 677 705 771 765 720 739 1,382 1,460 Net fee income 402 405 360 375 466 434 807 900 Gains (losses) on financial transactions and other 217 300 242 113 469 110 517 579 Total income 1,297 1,410 1,373 1,253 1,655 1,283 2,706 2,938 Op
Slide 101: Corporate & Investment Banking (Constant EUR mn)
99 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 607 674 765 775 721 738 1,281 1,460 Net fee income 365 395 356 380 467 433 760 900 Gains (losses) on financial transactions and other 181 271 251 128 470 108 452 579 Total income 1,153 1,340 1,372 1,283 1,658 1,280 2,493 2,938 Op
Slide 102: Wealth Management & Insurance (EUR mn)
100 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 109 93 92 100 88 91 202 179 Net fee income 308 269 279 296 297 316 578 612 Gains (losses) on financial transactions and other 133 99 102 149 117 113 232 229 Total income 550 462 474 545 502 519 1,012 1,021 Operating expenses (23
Slide 103: Wealth Management & Insurance (Constant EUR mn)
101 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 100 89 92 101 88 91 188 179 Net fee income 290 263 278 297 297 315 553 612 Gains (losses) on financial transactions and other 122 98 103 149 117 112 220 229 Total income 512 450 473 547 503 518 962 1,021 Operating expenses (222)
Slide 104: PagoNxt (EUR mn)
102 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 0 (1) 0 (0) (1) (1) (0) (2) Net fee income 94 78 88 103 81 127 171 209 Gains (losses) on financial transactions and other 7 (3) (8) (2) (14) (4) 4 (17) Total income 101 75 81 100 67 123 176 189 Operating expenses (95) (92) (113)
Slide 105: PagoNxt (Constant EUR mn)
103 PagoNxt (Constant EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 0 (0) 0 (0) (1) (1) (0) (2) Net fee income 75 74 88 102 82 126 150 209 Gains (losses) on financial transactions and other 7 (3) (7) (2) (14) (4) 4 (17) Total income 82 71 81 100 68 122 154 189 Operating
Slide 106: Appendix
104 Appendix Primary segments and other countries 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 107: Glossary
105 ❑ AFS: Available for sale ❑ AuM: Assets under Management ❑ BFG: Deposit Guarantee Fund in Poland ❑ bn: Billion ❑ CET1: Common equity tier 1 ❑ C&I: Commercial and Industrial ❑ CIB: Corporate & Investment Bank ❑ COVID-19: Coronavirus Disease 19 ❑ DGF: Deposit guarantee fund ❑ GDP: Gross domestic p
Slide 108: Glossary notes: profitability and efficiency definitions
106 Notes: 1) The averages for the RoTE and RoRWA denominators are calculated on the basis of 7 months from December to June. 2) For periods of less than a year, and in the event of non-recurring results existing, the profit used to calculate the RoTE is the annualised underlying attributable profit
Slide 109: 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 110: 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 2021 By: /s/ José García Cantera Name: José García Cantera Title: Ch