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 April, 2024 Commission File Number: 001-12518 Banco Santander, S.A. (Exact name of registrant as specified in its char
Slide 2: Table of Contents
BANCO SANTANDER, S.A. ________________________ TABLE OF CONTENTS Item 1. January - March 2024 Earnings presentation
Slide 3: Earnings Presentation Q1'24
Earnings Presentation Q1’24 30 April 2024
Slide 4: Important information: Non-IFRS and alternative performance measures
2 Important information Non-IFRS and alternative performance measures This presentation contains financial information prepared according to International Financial Reporting Standards (IFRS) and taken from our consolidated financial statements, as well as alternative performance measures (APMs) as
Slide 5: Important information: forward-looking statements
3 Important information In particular, forward looking statements are based on current expectations and future estimates about Santander’s and third-parties’ operations and businesses and address matters that are uncertain to varying degrees and may change, including, but not limited to (a) expectat
Slide 6: Index
4 Index 1 Q1'24 Highlights Progress on our strategy Group review 2 Final remarks 3 Appendix 4
Slide 7: Strong first quarter performance with all global businesses contributing to 2024 targets
5 Strong first quarter performance with all our global businesses contributing to our 2024 targets Note: YoY changes. In constant euros: Attributable Profit +9%; Revenue +9%. P&L accounts are all presented in underlying basis. All references to variations in constant euros across the presentation in
Slide 8: Strong YoY profit increase with double-digit growth in net operating income
6 Strong YoY profit increase, with double-digit growth in net operating income, supported by customer revenue and efficiency improvements Note: underlying P&L. (*) Including the temporary levy on revenue earned in Spain (-€335mn in Q1’24 and -€224mn in Q1’23). P&L Current Constant € million Q1'24 Q1
Slide 9: Strong start to the year, on track to deliver 2024 targets
7 Strong start to the year, which puts us on track to deliver our 2024 targets, or even overdeliver some of them… (1) YoY change in constant euros, except Argentina in current euros. Revenue1 Efficiency CoR FL CET1 RoTE Q1’24 2024 targets 9% 42.6% <43% 1.20% c.1.2% 12.3% >12.0% 14.9% 16% Mid-single
Slide 10: Consistent execution of ONE Transformation
8 … backed by consistent execution of ONE Transformation… Reminder from Investor Day Efficiency 2022-2025 • Multi-Nationals: +5% YoY revenue growth • Wealth: collaboration fees with CIB and Corporates reached €988mn (+12% vs. Q1’23) • Consumer: expansion of OEM agreements • Product simplification: 2
Slide 11: Value added by our five global businesses
9 … and value added by our five global businesses, which are accelerating the achievement of our ID targets 52% 20% 13% 6% 9% Revenue (€bn) Contribution to Group’s revenue1 C/I RoTE2 Q1’24 2025 RoTE2 target c.17% >14% >20% c.60% >30% 15-17% Note: revenue YoY change in constant euros. (1) As % of tot
Slide 12: Retail: strong profit growth YoY with solid C/I
10 Retail: strong profit growth YoY with solid C/I driven by revenue and cost control New digital onboarding and products leading to an increase in digital customers and digital sales Customer experience # of products1 (k) # of non-commercial FTEs1 per mn total customers Active customers (mn) Execut
Slide 13: Consumer: strong net operating income growth with successful deposit gathering
11 Consumer: strong net operating income growth with successful deposit gathering Providing global solutions integrated in our partners’ processes Expanding partnerships across regions Customer experience Simplifying and automating our processes Launched a new digital onboarding for pure digital pla
Slide 14: CIB: all-time high revenue
12 Enhanced centres of expertise, with new and strengthened industry and product teams Significant progress building new capabilities in the US Expansion on new value-added areas of growth Increased distribution capabilities, evolving our originate-to- share model towards a mainstream end-to-end pla
Slide 15: Wealth: double-digit growth across businesses with record commercial activity
13 Wealth: double-digit growth across businesses with record commercial activity Named again Best Private Bank in LatAm (Euromoney) while growing our customer base by +13% YoY Boosted results by fostering collaboration with Retail and CIB, and by simplifying our product offer in SAM and Insurance Ki
Slide 16: Payments: PagoNxt and Cards
14 +5% New wallet agreements to offer customers alternative payment options Continued strengthening PagoNxt’s customer value proposition Capex optimization and operational efficiencies driving down cost per transaction Global Cards platform (Plard) launched in Brazil Key drivers Seizing a growing op
Slide 17: Outstanding profitability and value creation with 14% growth in TNAVps + Cash DPS
15 Note: our shareholder remuneration policy is c.50% payout split in approximately equal parts (cash and share buybacks). Implementation of shareholder remuneration policy is subject to future corporate and regulatory decisions and approvals. (1) TNAVps + Cash DPS includes the €8.10 cent cash divid
Slide 18: Index
16 Index 1 Q1'24 Highlights Progress of our strategy Group review 2 Final remarks 3 Appendix 4
Slide 19: Strong profit increase YoY with double-digit growth in net operating income
17 Strong profit increase YoY, with double-digit growth in net operating income, supported by customer revenue and efficiency improvements -3% 2,571 2,670 2,902 2,933 2,852 Q1'23 Q2 Q3 Q4 Q1'24 € mn Attributable profit Attributable profit (Constant € mn) Note: underlying P&L. (*) Including the tempo
Slide 20: High-single digit revenue growth backed by customer activity
18 14,157 14,355 14,839 14,546 15,380 Q1'23 Q2 Q3 Q4 Q1'24 15,380 -1 -86 14,157 +957 +128 +98 +127 Q1'23 Retail Consumer CIB Wealth Payments CC Q1'24 High-single digit revenue growth backed by customer activity across businesses NII + Fees Other income YoY growth Total revenue • >95% of total revenu
Slide 21: NII and NIM up YoY
19 2.63% 2.73% 2.82% 2.76% 2.97% Net interest income and NIM 10,367 10,793 11,220 11,123 11,983 Q1'23 Q2 Q3 Q4 Q1'24 NII and NIM up YoY, supported by volumes and margin improvement Net interest income Margins NIM Quarterly NII NIM Note: NIM = NII / Average earning assets. Data and YoY % changes in c
Slide 22: Net fee income growth
20 3,092 3,063 3,105 2,832 3,240 Q1'23 Q2 Q3 Q4 Q1'24 Net fee income growth, demonstrating the value added from our business diversification Note: data and YoY % changes in constant euros. YoY growth 3,240 -114 3,092 +99 +65 +41 +54 +2 Q1'23 Retail Consumer CIB Wealth Payments CC Q1'24 Net fee incom
Slide 23: ONE Transformation driving structural efficiency gains and positive jaws
21 -0% -4% +15% +1% +4% -11% ( in real terms1)+1.1% 6,547 -2 -7 6,222 +132 +140 +14 +49 Q1'23 Retail Consumer CIB Wealth Payments CC Q1'24 ONE Transformation is driving structural efficiency gains and positive jaws Note: data and YoY % changes in constant euros. (1) Costs in real terms exclude the i
Slide 24: Credit quality remains robust
22 2,922 2,919 3,254 3,416 3,125 Q1'23 Q2 Q3 Q4 Q1'24 Credit quality remains robust CoR LLPs Other credit quality metrics Note: CoR - provisions to cover losses due to impairment of loans in the last 12 months / average customer loans and advances of the last 12 months. Data in constant euros. 1.05%
Slide 25: Strong capital generation, profitable front-book growth
23 Front book pricing RoRWA of new book 2.8% Strong capital generation, profitable front-book growth >15% RoTE and significant RWA mobilization % (1) Shareholder remuneration charged against profit earned in Q1 2024 (split between cash dividends and share buybacks) in line with our 50% payout target
Slide 26: Index
24 Index 1 Q1'24 Highlights Progress of our strategy Group review 2 Final remarks 3 Appendix 4
Slide 27: Progress towards our Investor Day targets
25 RoTE1 Profitability FL CET1 Strength RWAs with RoRWA > CoE Disciplined capital allocation Payout 50% Shareholder remuneration Note: execution of the shareholder remuneration policy is subject to future corporate and regulatory decisions and approvals. (1) RoTE is presented annualizing the tempora
Slide 28: 2024 has begun with excellent business and commercial dynamics
26 12.3% €15.4bn 2024 has begun with excellent business and commercial dynamics Note: our shareholder remuneration policy is c.50% payout split in approximately equal parts (cash and share buybacks). Implementation of shareholder remuneration policy is subject to future corporate and regulatory deci
Slide 29: Index
27 Index 1 Q1'24 Highlights Progress of our strategy Group review 2 Final remarks 3 Appendix 4
Slide 30: Appendix
28 Appendix Investor Day Targets summary Detail by global business, region and country Reconciliation of underlying results to statutory results Glossary The other information in the Appendix regularly provided each quarter can be found in the document entitled "Supplementary Information", published
Slide 31: ONE Transformation driving double-digit growth in value creation
29 (1) Target payout defined as c.50% of Group reported profit (excluding non-cash, non-capital ratios impact items), distributed in approximately 50% in cash dividend and 50% in share buybacks. Execution of the shareholder remuneration policy is subject to future corporate and regulatory decisions
Slide 32: Appendix
30 Appendix Investor Day Targets summary Detail by global business, region and country Reconciliation of underlying results to statutory results Glossary The other information in the Appendix regularly provided each quarter can be found in the document entitled "Supplementary Information", published
Slide 33: Detail by global business
Detail by global business @ Santander
Slide 34: Retail & Commercial Banking
32 Retail & Commercial Banking Highlights Loans Deposits Mutual Funds Efficiency CoR RoTE Key data Note: RoTE annualizing the impact of the temporary levy. Underlying P&L €621bn -2% €642bn +2% €89bn +13% 41.1% -3.9pp 1.03% +11bps 17.6% +2.9pp •Convergence towards a common business and operating mode
Slide 35: Digital Consumer Bank
33 Digital Consumer Bank Highlights New lending Loans Deposits Efficiency CoR RoTE Key data Underlying P&L • We continue expanding our leadership in consumer finance across our footprint, while we focus on converging towards a more digital global operating model, using common platforms and with a gl
Slide 36: Corporate & Investment Banking
34Note: Global Banking = GDF & CF. RoTE annualizing the impact of the temporary levy. Corporate & Investment Banking Highlights Key data Underlying P&L • We continue making our centres of expertise more sophisticated, deepening client relationships with a particular focus on the US build-out to comp
Slide 37: Wealth Management & Insurance
35 €482bn +14% €5.5bn 7% €3.8bn 7% €3.0bn -4% 34.4% -4.0pp 80.4% +9.4pp Gross written premiums Efficiency RoTE AuMs Net new money (PB) Net sales (SAM) Wealth Management & Insurance Highlights Key data Note: RoTE annualizing the impact of the temporary levy. (2) Considering annualized net new money o
Slide 38: Payments
36 Payments Note: in PagoNxt a negative growth rate indicates a lower loss. Number of cards managed by Cards equals to 99 million, because it excludes those managed by Digital Consumer Bank including Openbank (3 million cards). (2) Excluding a one-time positive fee recorded in the first quarter of 2
Slide 39: Corporate Centre
37 Corporate Centre • NII improved driven by higher liquidity buffer remuneration • Lower gains on financial transactions due to higher negative FX hedging impacts • Cost improved driven by ongoing simplification measures • Other results and provisions improved slightly YoY Highlights Income stateme
Slide 40: Detail by region and country
38 Detail by region and country
Slide 41: Europe highlights
39 Highlights Note: Q1’24 data and YoY changes (loans, deposits and mutual funds in constant euros). RoTE annualizing the impact of the temporary levy, 15.7% without annualizing it. Key data and P&L Loans Deposits Mutual Funds Efficiency CoR RoTE • We remain focused on growing our business while tra
Slide 42: Spain and UK
40 Spain UK España and UK Loans Deposits Mutual FundsLoans Deposits Mutual Funds Efficiency CoR RoTEEfficiency CoR RoTE • Sustained strong growth in customers. Drop in loans (mortgage prepayments, ICO maturities and CIB). Migration to time deposits trend continues, while mutual funds demand increase
Slide 43: Portugal and Poland
41 Portugal and Polonia Portugal PolandPoland Loans Deposits Mutual Funds Loans Deposits Mutual Funds Efficiency CoR RoTE Efficiency CoR RoTE • Loans: moderate decline as new business recovered, offsetting last year’s deleverage. Cost of deposits under control, affecting deposit volumes • Profit +69
Slide 44: Digital Consumer Bank Europe
42 • We are focused on strengthening our leadership in auto and non-auto through strategic alliances and better service through new operational leasing and non-auto BNPL platforms • Loans rose 6% YoY, mainly driven by Auto (+7%). Customer deposits increased 21%, in line with our strategy to decrease
Slide 45: North America
43 • Focus on transformation, leveraging the strengths of our businesses in the US and Mexico and enhancing our regional operating model in T&O • Solid loan growth, particularly in Mexico. Deposits are also increasing, mainly driven by Retail in Mexico and Consumer in the US • Revenue up 8% YoY driv
Slide 46: Mexico and US
44 • Successful customer acquisition campaigns driving up loan volumes (Consumer and corporate loans) and time deposits • Profit up 6% YoY supported by double-digit revenue growth and improved efficiency. CoR rose in line with expectations • Profit growing QoQ, supported by cost improvements Note: Q
Slide 47: South America
45 South America Note: Q1’24 data and YoY changes (loans, deposits and mutual funds in constant euros). Loans Deposits Mutual Funds Efficiency CoR RoTE Highlights Key data and P&L €161bn +5% €133bn +6% €71bn +14% 37.4% -1.7pp 3.44% +5bps 14.8% -0.4pp • We are focused on being the primary bank for ou
Slide 48: Brazil and Chile
46Note: Q1’24 data and YoY changes (loans, deposits and mutual funds in constant euros). Brazil Chile Brasil and Chile Loans Deposits Mutual Funds Loans Deposits Mutual Funds Efficiency CoR RoTEEfficiency CoR RoTE €104bn +6% €89bn +11% €55bn +15% 33.0% -2.4pp 4.79% -5bps 15.4% +1.3pp €40bn +4% €28bn
Slide 49: Argentina, Uruguay, Peru and Colombia
47Note: Q1’24 data and YoY changes (profit, loans, deposits and mutual funds in constant euros). In Argentina, given the strong ARS devaluation and high inflation and its effect on exchange rates, variations are in current euros. Argentina Argentina y Uruguay Uruguay, Peru and Colombia Loans Deposit
Slide 50: Appendix
48 Appendix Investor Day Targets summary Detail by global business, region and country Reconciliation of underlying results to statutory results Glossary
Slide 51: Reconciliation of underlying results to statutory results
49 Reconciliation of underlying results to statutory results (1) Includes exchange differences. Explanation of Q1’24 adjustments: • Temporary levy on revenue earned in Spain in the first quarter, totalling EUR 335 million, which was moved from total income to other gains (losses) and provisions. Exp
Slide 52: Appendix
50 Appendix Investor Day Targets summary and our last step towards ONE SANTANDER Detail by global business, region and country Reconciliation of underlying results to statutory results Glossary
Slide 53: Glossary - Acronyms
51 Glossary - Acronyms • A2A: account to account • ALCO: Assets and Liabilities Committee • AM: Asset management • AuMs: Assets under Management • bn: Billion • BNPL: Buy now, pay later • bps: Basis points • c.: Circa • CAL: Customer assets and liabilities • CET1: Common equity tier 1 • CHF: Swiss f
Slide 54: Glossary - Definitions
52 Glossary - Definitions Notes: The averages for the RoTE and RoRWA denominators are calculated using the monthly average over the period, which we believe should not differ materially from using daily balances. The risk-weighted assets included in the denominator of the RoRWA metric are calculated
Slide 55: 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 56: 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: 30 April 2024 By: /s/ José García Cantera Name: José García Cantera Title: C