Banco Santander, S.a. · BME:SAN
Banco Santander — Banco Santander Central Hispano — 9M 2002 Earnings Presentation
84 slides from Banco Santander's earnings presentation, Dec 24, 2002
Slide 1: Key consolidated data
Key consolidated data 30.09.2002 30.09.2001 Variation (%) 31.12.2001 Balance sheet Euro MM. Euro MM. 2002/2001 Euro MM. Total assets 335,474.5 344,283.3 (2.56 ) 358,137.5 Loans 164,342.8 167,336.6 (1.79 ) 173,822.0 Customer funds 308,735.3 317,718.8 (2.83 ) 331,378.9 Customer funds on balance sheet
Slide 2: Quarterly non-performing loans evolution
Analysis by business areas Santander Central Hispano January • September 2002 Quarterly non-performing loans evolution Euro MM 2001 2002 3rd quarter 4th quarter 1st quarter 2nd quarter 3rd quarter Balance at beginning of period 4,473.9 4,215.5 3,895.5 4,001.0 3,728.9 + Net additions 12.7 442.3 509.4
Slide 3: VaR by geographic area
As regards distribution by geographic areas, the average yearly VaR generated by trading activities remained concentrated in Latin America, and it was 9% lower than in the second quarter. Although the contribution of Europe in average yearly VaR terms was only 14%, barely two percentage points more
Slide 4: Analysis by business areas
Analysis by business areas Santander Central Hispano January • September 2002
Slide 5: Key consolidated data
ITEM 2 SANTANDER CENTRAL HISPANO GROUP Key consolidated data Balance sheet 30.09.2002 Euro MM. 30.09.2001 Euro MM. Variation (%) 2002/2001 31.12.2001 Euro MM. Total assets 335,474.5 344,283.3 (2.56 ) 358,137.5 Loans 164,342.8 167,336.6 (1.79 ) 173,822.0 Customer funds 308,735.3 317,718.8 (2.83 ) 331
Slide 6: Results January - September 2002
A | ALLY AND RESULTS oo January - September 2002 \ \ y See, October 30, 2002
Slide 7: Forward looking statements
Santander Central Hispano cautions that this presentation contains forward looking statements. These forward looking statements are found in various places throughout this presentation and include, without limitation, statements concerning our future business development and economic performance. Wh
Slide 8: Agenda
AGENDA u Key points of the quarter = Group results u Performance by Business Areas a Risk management = Capital management = Conclusions ® Santander Central Hispano
Slide 9: Key points of the quarter
Key points of the quarter = Net attributable income in line with the forecast for the whole year with good performance of the most recurrent businesses = Brazil's risk profile is reduced = Argentina improves its position despite the lack of a new economic framework. Its financial statements continue
Slide 10: Brazil. Main aspects
Brazil. Main aspects = Public debt portfolio uLoan portfolio u Value of the franchise. Generation of recurrent income u January-September 2002 results @® Santander Central Hispano
Slide 11: Brazil. Public debt portfolio
Brazil. Public debt portfolio = Public debt portfolio* at 30.09.02 US$4,200 million a lmpact of portfolio adjustment: a Against earnings: EUR 316 million a Against reserves: EUR 202 million a Portoflio features: a Domestic debt in local currency a Today, mark to market portfolio a Weight of the port
Slide 12: Brazil. Portfolio of loans
Brazil. Portfolio of loans a Bank bought after write-offs. Good quality portfolio mu Loans EUR 3,500 mill. = Good portfolio composition a No deterioration in NPLs. Good coverage level NPLs and NPL coverage Structure of loans + Contingent liabilities Coverage 178% 174% Individuals SS 34% Corporate 5%
Slide 13: Brazil. Franchise with high commercial value
Brazil. Franchise with high commercial value = Santander Banespa focused on Sao Paulo = Good customer profile: higher market share than rivals in more attractive socioeconomic classes a High affinity (37% with payroll) and customer loyalty (75% of current accounts with more than 3 years) = Room for
Slide 14: Brazil. Results
Brazil. Results EUR Million excl. exch. 64.7% AEuestyeyaAmount EUR rate effect ames 50.0% Basic revenue 2,012 +6.3 +21.6 Trading gains -314 nm. n.m. Pers.+ gen.exp. -766 -26.5 -11.2 Jan-Sep'01 Jan-Sep'02 Net oper. income 796 -1.1 +14.2 Net attrib. income 452 +6.2 +22.6 Efficiency ratio 54.3% Sep Sep
Slide 15: Argentina
Argentina = Consolidation continues on the basis of provisional data. Argentina’s earnings have been neutralized = Current situation: a Investment fully covered (with goodwill), all intragroup cross- border and cross-border needing provisions with third parties that is required by regulations a Bett
Slide 16: Agenda
AGENDA a Key points of the quarter = Group results a Performance by Business Areas a Risk management = Capital management = Conclusions ® Santander Central Hispano
Slide 17: Impact of exchange rates
Impact of exchange rates Sep’02 / Sep’01 Average exch. rate variation: Impact on results (%) Estimated average impact on the Group on Latin America Main currencies: US$ -3.3 Brazilian real -15.3 Chilean peso -11.9 Mexican peso -4.2 Venezuelan bolivar -32.4 Average exch. rate variation: Impact on bal
Slide 18: Group net attributable income in line with goals
Group net attributable income in line with the goals for the year EUR million 1,861 1,722 -7.5% Jan-Sep'01 Jan-Sep'02 In line with the Group’s goals for the whole year: EUR 2,250 million Nota: Total Group excluding Argentina al Hispano
Slide 19: Group results
Group results EUR million *V Net interest rev. 7,197.1 2.11 Basic revenue 10,375.7 2.69 Net oper. revenue 10,526.7 -1.82 Net oper. income 4,336.9 7.64 Net oper. inc. excl div.+ trad. gains 3,759.4 25.47 Net attrib. income 1,721.9 -7.47 a Impact of exchange rates a Improvement in net fees and commiss
Slide 20: Trading gains
Trading gains EUR million Trading gains, year to date Quarterly trading gains 618 151 Jan-Sep'01 Jan-Sep'02 Brazil -195 -155 227 218 236 173 171 -10 -75 a Qt'o1 Q2 Q3 Q4 Q1'022 Q2 Q3 Note: Total Group excluding Argentina ntral Hispano 15
Slide 21: Cost discipline
Cost discipline Personnel + general expenses Efficiency ratio Variation Jan-Sep’02 / Jan-Sep’01 Exch. rate 54.8% -3.8 p.p. Euro excluded y Spain -2.0% -2.0% 51.0% Abroad -13.2% -3.1% Total 8.6% -2.6% Jan-Sep'01 Jan-Sep'02 Strategic goal: cost discipline Note: Total Group excluding Argentina &® Santa
Slide 22: Net operating income
Net operating income EUR million +662 3% og = +9% : 4,337 4,029 | | 439 L... -296 +EUR 1,093 million +27% Netoperating Netinterest Netfees and Personnel+ Otheroperating Trading gains Exchange Netoperating income Jan- revenue commissions general costs (Brazil) rates income Jan- Sep'01 expenses Sep'02
Slide 23: Net operating income excluding dividends and trading gains
Net operating income excluding dividends and trading gains EUR million @ | Exchange tate effect Q1'01 Q2 Q3 Q4 Q1'02 Q2 Q3 Note: Total Group excluding Argentina ® Santander Central Hispano 18
Slide 24: Income statement items below operating income
EUR million Inc. from equity-acc. holdings Net provisions for loan-losses Goodwill amortization Earnings from Group transact. Other income Taxes and minority interests 183.1 -1,107.9 -553.5 199.3 -334.5 -1,001.4 439.4 -1,153.3 -1,495.1 598.0 721.5 -1,278.5 -256.3 45.4 941.6 -398.7 -1,056.0 277.1 Not
Slide 25: Agenda
AGENDA a Key points of the quarter a Group results = Performance by Business Areas a Risk management = Capital management = Conclusions & Santander Central Hispano 20
Slide 26: Summary of business areas. Detail of earnings
Summary of business areas. Detail of earnings EUR million and % over Jan-Sep’01 Net operating income +7.6% [+15.0%] European Retail B 2,143] +19.9% umn 1,706] -8.3% [+5.8%] “RPV. 341 +3.9% [+9.5%] Global Whole. B. 330 -25.4% Ci epee 483[] +53.0% Net attributable income European Retail B Retail B. La
Slide 27: European Retail Banking. Good pace of growth
European Retail Banking. Good pace of growth in net operating income and net attributable income ... EUR million and % over Jan-Sep’01 Net operating income Net attributable income +19.9% +19.4% SAN Banesto Portugal Cons. Fin 1,059 469|+10.3% 278 +4.3% 330 +102.9% +11.4% SAN 622 Banesto 336 | +3.0% P
Slide 28: European Retail Banking. Fees and lower expenses
European Retail Banking. ... benefited from higher net fees and commissions and lower expenses EUR million and % over Jan-Sep’01 Net fees and commissions +6.9% +9.2% SAN 865 Banesto | 323|+2.3% Portugal | |133 +12.1% Cons. {1121 459.8% Net operating revenue +7.7% SAN 2,455 Banesto | 1,112]+3.5% Port
Slide 29: European Retail Banking. Activity
European Retail Banking. Activity EUR billion Total loans Customer funds y 113.5 412.2% 101.2 122% ) 92.7 — Sep'01 Cs 54% ) 97.8 Sep'02 a Sc Sep'01 Sep'02 Securitization effect excluded in loans 49 Sep'01 en 8%) Sep'02 * Supersatisfaccion and Super Rendimiento Included &® Santander Central Hispano 2
Slide 30: Retail Banking
Santander Central Hispano Retail Banking EUR billion Total loans Mortgages 51.9 <> a G132%) 8 22.9 Sep'01 Sep'02 Sep'01 Sep'02 Deposits excluding REPOs |___Mutualfunds* | —— _ 37.0 40.4 C+5.0% ) 42.5 34.9 (45.9% ) Sep'01 Sep'02 Sep'01 Sep'02 ___ Securitization effect excluded in loan: * Supersatisfa
Slide 31: Banesto. Activity
Banesto. Activity EUR million Loans 14%) 26.7 23.4 Sep'01 Sep'02 Sep'01 Customer funds On balance sheet Sep'01 Sep'02 Sep'01 Securitization effect excluded in loans ntral Hispano 26
Slide 32: Mutual funds in Spain
Mutual funds in Spain. Market share in assets under management 22.1% O Jan'02 M Sep'02 21.0% 20.4% * 50.1% 5.7% 9 > 5.5% 4.6% 4.8% 4.7% 48% — 4.4% 4.9% 3.2% 3.1% i SAN BBVA Caixa Banesto Popular Caja Madrid = Ahorro Corp. Excluding Real Estate Mutual Funds Source: Inverco
Slide 33: Good level of activity in the rest of Europe
We maintain a good level of activity in the rest of Europe EUR million Portugal Consumer Financing — ~~ 20,106 ———~_ 13,252 C 11% > , > ” 18,100 mi 3.435 187% Hl Sep'01 Sep'02 Sep'01 Sep'02 Sep'01 Sep'02 Sep'01 Sep'02 &® Santander Central Hispano 28
Slide 34: Total Latin America
Total Latin America’. Heavy impact of trading gains and exchange rates EUR million and % over Jan-Sep’01 Net operating income Net attributable income -5.9% [+7.7%] 4.3% [+10.7%] Mexico 599] -5.7% [-1.6%] Mexico 586 | +27.3% [+31.4%] Brazil 796] -1.1% [+14.2%] Brazil 452| +6.2% [+22.6%] Chile 459 |+1
Slide 35: Total Latin America. Detail by countries
Total Latin America. Detail by countries * In the main countries, focus on generating recurrent revenues and on cost reduction EUR million and % over Jan-Sep’01 Net fees and commissions Personnel + general expenses -1.9% [+9.8%] -15.7% [-4.1%] Mexico 356] +0.7% [+4.8%] Mexico 647 | -12.6% [-8.4%] Br
Slide 36: Total Latin America. Rest of countries
Total Latin America *. In the rest of the countries **: refocus of the Group’s business with sharp reduction of risks and costs. EUR million Net attributable income -76.4 Jan-Sep'02 Reduction of operational Total loans resources Branches (*) Retail B. + Global Wholesale B. + Asset Mgmt & Priv. B (**
Slide 37: Asset Management and Private Banking
Asset Management and Private Banking In a difficult environment, net operating income and net attributable income continue to grow ... EUR million and % over Jan-Sep’01 Net operating income Net attributable income +3.9% [+9.5%] 308 341 2001 2002 +0.4% [+6.3%] 55 256 2001 2002 2 Note: Data excluding
Slide 38: Asset Management and Private Banking
Asset Management and Private Banking ... due to higher net fees and commissions and lower expenses EUR million and % over Jan-Sep’01 Net fees and commissions Personnel + general exp. +2.8% [+7.2%] -4.7% [-2.0%] 526 264 512 251 2001 2002 2001 2002 = Mutual funds in Spain: increase in market share (+1
Slide 39: Global Wholesale Banking
Global Wholesale Banking Heavy impact of the markets and of provisions and allowances EUR million and % over Jan-Sep’01 Net operating income Net attributable income -25.4% -37.1% 442 330 2001 2002 286 180 2001 2002 Note: Data excluding Argentina &® Santander Central Hispano
Slide 40: Global Wholesale Banking
Global Wholesale Banking Impact of the markets on securities services fees and trading gains EUR million and % over Jan-Sep’01 Basic revenue Trading gains -8.1% -85.9% 694 89 638 12 P| 2001 2002 2001 2002 = Sharp fall in revenues, not offset by the significant cost reduction: -7.0% Note: Data exclud
Slide 41: Global Wholesale Banking
Global Wholesale Banking This Area’s businesses performed differently = Corporate Banking in Spain: growth still weak, but improving in spreads on loans and in growth rates % variation ‘02/01 Jan-Mar Jan-Jun Jan-Sep Netinterest revenue -13.0 -0.4 +1.3 Net fees andcomm. +1.2 +4.4 +6.8 Net operating i
Slide 42: Summary of business areas. Detail of earnings
Summary of business areas. Detail of earnings EUR million and % over Jan-Sep’01 Net operating income +7.6% [+15.0%] European Retail B 2,143] +19.9% Siam 1,706] -8.3% [+5.8%] Asset Mart 341 +3.9% [+9.5%] Global Phan 330 -25.4% Ci epee 483[] +53.0% Net attributable income -7.5% [+0.6%] European Retail
Slide 43: Agenda
AGENDA a Key points of the quarter = Group results a Performance by Business Areas a Risk management = Capital management = Conclusions & Santander Central Hispano 38
Slide 44: Risk management: high diversification
Risk management: high diversification a Risk management at the local level = Focused on Europe and investment-grade countries: 95% of total loans a High degree of diversification by sectors a Very low exposure to corporate high risk otal cred k and debtors Only 5% of total loans in non investment-gr
Slide 45: Risk management: low risk profile
Risk management: low risk profile = High percentage of secured loans in total loans: 35.4% = Counterparty risk: 88% of risks with A rated entities or higher = Country-risk that needs provisions with third parties: US$102 million (Brazil: 31 million) Secured loans as % of total Distribution of risks
Slide 46: NPL ratio
NPL ratio In percentage terms 081 082 0.88 0.98 2.26 2.08 1.89" 1.86 : Dc'00 Sp'01 Dc'01 Sp'02 4.52 7 399° 333 344* Dc'00 Sp'01 Dc'01 Sp'02 Dc'00 Sp'01 Dc'01 Sp'02 (*) Excluding Argentina Central Hispano
Slide 47: NPL coverage ratio
NPL coverage ratio In percentage terms Total Group 143 142* Dc'00 Sp'01 Dc'01 Sp'02 192 210 206 192 Dc'00 Sp'o1 Dc'01 Sp'o2 1 * 110 126—=Ss«129 39 Dc'00 Sp'o1 Dc'01 Sp'0o2 (*) Excluding Argentina &® Santander Central Hispano
Slide 48: Agenda
AGENDA a Key points of the quarter = Group results a Performance by Business Areas a Risk management = Capital management = Conclusions tander Central Hispano
Slide 49: Capital management. BIS ratio goal > 12%
Capital management. BIS ratio goal > 12% Average ‘89 - ‘01 12.1% 13.6% 12.9% 12.7% 12.9% 12.5% tay 1% 10.6% _ 10.3% Acquisitions in / Acquisition of Europe and Latin Depreciation of Banesto America Latam currencies ‘899 «90 «'91 92, 1938 94 95 "96 '97)- 98S 99 00 ‘01 Sp'02 Note: Composition of the G
Slide 50: Capital management. Tier I ratio goal > 8%
Capital management. Tier | ratio goal > 8% tier! 2" 7 6Y% 8.0% $780 Core capital 5.1% 4.7% ° 4.3% 4.4% 1999 2000 2001 Sp'02 Note: Composition of the Group at each date
Slide 51: Capital management. Recovery of ratios
Capital management. Recovery of ratios 11.6% Public offering of Banesto’s Tier || 7.3% 7.7% preferential subscription rights BIS ratio 10.8% 5.0% Core capital | 4.4% Bital operation Sep'02 After Securitizations operations u Reduced capital exposure to local currencies a High capacity for recurrent g
Slide 52: Agenda
AGENDA a Key points of the quarter = Group results a Performance by Business Areas a Risk management = Capital management | = Conclusions @® Santander Central Hispano
Slide 53: Summary
Summary = Net attributable income in line with the forecast for the whole year = Supported by the good performance of the Group’s business in Spain and Europe u Heavy impact of exchange rates (Latin America) and trading gains (Brasil) = This impact hides the positive performance in Latin American re
Slide 54: Customer base with high potential
Customer base with high potential s i-03 Plan + Cost reduction New IT platform Integration Chile, Mexico Altair Platform + Local-based management No corporate high risk 95% of total loans in investment- grade countries + Improvement of ratios Sharp reduction of our exposure to local currencies High
Slide 55: @> m0)
@> Santander Central Hispano m0)
Slide 56: Appendix
Appendix = Group results and balance sheet = European Retail Banking a Latin America ® Santander Central Hispano 51
Slide 57: Group results variation by item
EUR Million Net fees and commissions Trading gains Personnel & general expenses Other operating expenses Income from equity-acc. holdings Net provisions for loan-losses Goodwill amortization Group transactions + extraord. Corporate tax + Minority interests -5.50 -70.56 -12.84 -5.40 -58.52 7.94 -62.9
Slide 58: Performance of the Group's main business indicators
Performance of the Group’s main business indicators EUR Million % total var. % var.excl. % var. excl Argentina Arg + Exch Loans (gross) Total customer funds on balance sheet Mutual funds Pension funds Total customer funds 169,703 217,730 66,518 16,693 308,735 Santander Central Hispano 53
Slide 59: Total loans (excluding Argentina)
Total loans (excluding Argentina) EUR Million +5,323* +5800 +1,116 174,772 172,072 -180 452000 ae , pS -8,967 +10,551 [ 1 Sep. '01 Spain Rest of Latin Rest Exchange Securitiz. Sep. '02 Europe America rate effect Effect (*) Effect of the incorporation of AKB: EUR 4,147 million Sentral Hispano
Slide 60: Total loans to the private sector
Total loans to the private sector EUR Million Total private sector * Secured loans * +5.3% | 4 Bh 010 84,722 84,262 82,672 : j |. +16.2% —_— 4 36,291 34,927 33,527 +3.9% 33,028 31,226 Sep.'01 Dec.'01 Mar.'02 Jun.'02 Sep.'02 Sep.'01 Dec.'01 Mar.'02 Jun.'02 Sep.'02 (*) Including securitization; Total
Slide 61: Total customer deposits (excluding Argentina)
Total customer deposits (excluding Argentina) EUR Million +15,227 Sep. '01 Spain Rest of Latin Rest Exchange Sep. '02 Europe America rate effect (*) Effect of the incorporation of AKB: EUR 1,164 million Santander Central Hispano 56
Slide 62: Breakdown of mutual funds (excluding Argentina)
Breakdown of mutual funds (excluding Argentina) EUR Million +1,084 41,784 +3531 (gc 66,424 63,227 -3,202 +6,399 Sep. '01 Spain Latin Rest Exchange Sep. '02 America rate effect tral Hispano 87
Slide 63: Breakdown of pension funds (excluding Argentina)
Breakdown of pension funds (excluding Argentina) EUR Million +1,580 +165 coro 14,386 13,423 F480 nnn wannee -1,212 +2,175 Sep. '01 Spain Latin Rest Exchange Sep. '02 America rate effect Central Hispano 58
Slide 64: Appendix
Appendix = Group results and balance sheet = European Retail Banking a Latin America @® Santander Central Hispano 59
Slide 65: Retail Banking results
Santander Central Hispano Retail Banking results EUR Million 14.5% increase in net attributable income due to: m Defense of spreads in an environment of lower interest rates m Increase in net fees and commissions = Cost reduction +61.4 43.2 3.2 1.6% -30.9% +556 46 | “3.9% 12.9% -4.29 543.4 -4.1 | ="
Slide 66: Retail Banking. Revenue relaunching
Santander Central Hispano Retail Banking. We are still focused on both the reluanching of revenue ... EUR Million Net fees and commissions rose 10% : ; FA over the same period of 2001 And continue to improve in 2002 6.9% 310 293 5.2% 268 276 265 271 262 7 Q1'01 Q2. Q3- 4 Q1'02_ Q2- 3 J-M '02/'01 J-J
Slide 67: Retail Banking. Cost cutting
Santander Central Hispano Retail Banking. ..and cost cutting Variation Jan-Sep’02 / Jan-Sep’01 Efficiency ratio 53.0% -3.1 | p. Personnel expenses -2.2% General expenses -9.5% 49. , Personnel + general exp. -4.0% 7 Jan-Sep'01 Jan-Sep'02 @® Santander Central Hispano 62
Slide 68: Banesto Group. Results
Banesto Group. Results EUR Million 3.0%* increase in net attributable income due to: m Good performance of net interest revenue = Growth in net fees and commissions m Flat costs 426.2 -20.6 J-S'01 +netinterest +netfees& +trading —- operating - prov. for -other + taxesand = -J-S'02 revenue commission
Slide 69: Banesto Group. Net fees and commissions
Banesto Group Net fees and commissions EUR Million m Increase due to typical banking business u Negative impact of the markets on mutual funds and securities services fees +4.2 322.5 315.3 -0.7 “3.4 71 oe 4+3.1% -12.4% +18.3% J-S '01 Managed funds Securities Account Services and J-S '02 services man
Slide 70: Banesto Group. Efficiency ratio
Banesto Group Efficiency ratio Variation Jan-Sep’02 / Jan-Sep’01 Efficiency ratio 52.9% -2.4p.p. Personnel expenses -1.3% v 0, General expenses -0.6% 50.5% Personnel + general exp. -1.1% Jan-Sep'01 Jan-Sep'02 @® Santander Central Hispano
Slide 71: Banesto's capital increase
Banesto’s capital increase = Two simultaneous operations expected for November: Operation a Capital increase (11.76% of the capital) structure a Public offering of preferential subscription rights in Spain and a private placement elsewhere a CNMV requirement to maintain a sufficient free-float uA la
Slide 72: Appendix
Appendix = Group results and balance sheet = European Retail Banking a Latin America & Santander Central Hispano
Slide 73: Mexico
Mexico EUR Million excl. exch. AEuestyeyaAmount EUR rate effect 55.0% 47.8% Basic revenue 1,230 -7.5 -3.4 Trading gains 133 -33.9 -29.7 Pers.+ gen.exp. -647 -12.6 -8.4 Jan-Sep'01 Jan-Sep'02 Net oper. income 599 -5.7 -1.6 Net attrib. income 586 427.3 +314 Efficiency ratio 48.3% Y Sep Sep ‘01 fy 47.4%
Slide 74: Chile
Chile EUR Million excl. exch. APES yam Amount EUR rate effect 40.5% 45.5% Basic revenue 758 -9.9 +1.9 Trading gains 94 194.2 206.1 Pers.+ gen. exp. -344 -9.3 +2.5 Jan-Sep'01 Jan-Sep'02 Net oper. income 459 +1.6 +13.4 - Efficiency ratio Net attrib. income 229 -1.1 +12.9 43.5% Sep ‘01 40.5% NPL ratio
Slide 75: Puerto Rico
Puerto Rico EUR Million excl. exch. AEuestyeyaAmount EUR rate effect 37.1% Basic revenue 250 7.7 44 52.5% Trading gains 7 -79.2 -75.9 Pers.+ gen. exp. -152 +0.1 +3.3 Jan-Sep'01 Jan-Sep'02 Net oper. income 90 -34.9 -31.6 Net attrib. income 5 -87.8 -84.5 Sep Sep ‘01 50.1% aia NPL ratio 2.56 2.21 NPL c
Slide 76: Venezuela
Venezuela EUR Million excl. exch. AEuestyeyaAmount EUR rate effect 41.6% Basic revenue 432 -14.0 +17.7 36.2% Trading gains 136 n.m n.m. Pers.+ gen.exp. -215 -17.3 414.5 Jan-Sep'01 Jan-Sep'02 Netoper.income 312 +524 +83.9 Net attrib. income 158 +23.9 +55.0 Efficiency ratio 49.3% Sep ‘01 37.8% NPL rat
Slide 77: Retail Banking Latin America
Retail Banking Latin America. Lower lending and heavy impact of exchange rates EUR million % var. of % var. of 30. 09.01 (*) 30.09.01 (** Loans (gross) 35,540 | 08 | Customer funds on balance sheet 46,552 -20.4 -0.5 Mutual funds 10,685 -11.4 +14.8 Pension funds 8,487 +4.5 +19.5 Total customer funds
Slide 78: Customer loans (gross)
Customer loans (gross) Balance Bal. Var.o/ Var.excl Latest EUR Million 09.02 09.01 (%) exch. r.(%)) available Market share Brazil 3,495 -47.5 -10.1 4.4% Mexico 14,316 6.5 +7.6 12.7% 10.7% Chile 10,379 -14.7 -1.1 27.2% a Pto. Rico 4,427 -13.3 -5.9 12.6% SUBTOTAL 32,618 -16.7 +0.1 Venezuela 1,127 Rest
Slide 79: Customer funds on balance sheet
Customer funds on balance sheet Bal. Var. o/ Var.excl Latest EUR Million 09.02 09.01 (%) exch. r.(%) available Brazil 5,425 = -33.3 +41 45% Market share (*) Mexico 19,573 -10.2 +4.0 15.2% 10.8% 10.4% Chile 12,796 -13.2 +0.4 26.1% Pto. Rico 4,163 -24.6 -17.2 12.0% SUBTOTAL 41,956 Venezuela 1,942 -55.
Slide 80: Mutual funds
Mutual funds Bal. o/ Latest EUR Million 09.02 09.01 (%) exch. r.(%) available Brazil 3,590 -42.4 5.1 45% Mexico 4,387 +14.9 +29.0 14.1% Chile 1,727 +19.9 +335 22.5% 8.8% Pto.Rico(*) 605 218.7 +226.1 24.2% a 118 +146 Venezuela Rest Sep '01 Latest available TOTAL 10,778 -19.8 +11.4 Total excl. Argenti
Slide 81: Pension funds
Pension funds Bal. o/ Latest EUR Million 09.02 09.01 (%) exch. r.(%) available Market share Mexico ; 9.0% 14.0% Chile . : 11.1% 12.3% SUBTOTAL 6,397 TOTAL 10,794 Sep '01 Latest available Total excl. Argentina 8,487 +4.5 +19.5 &® Santander Central Hispano
Slide 82: NPL ratio by country
Brazil Mexico Chile Puerto Rico Venezuela Rest 3.55 1.17 3.43 2.56 10.98 14.93 3.84 1.01 2.59 2.12 10.52 7.25 4.30 1.49 3.01 2.45 5.69 6.99 5.32 1.68 3.34 2.21 6.12 7.73 7
Slide 83: NPL coverage by country
Brazil Mexico Chile Puerto Rico Venezuela Rest 174.2 267.2 99.3 100.0 100.0 82.3 177.8 320.3 105.4 99.8 89.7 122.0 166.7 318.8 118.3 104.1 104.6 126.8 148.2 159.5 109.6 103.3 118.7 95.9 78
Slide 84: 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 Central Hispano, S.A. Date: December 23, 2002 By: /s/ José Antonio Alvarez Name: José An
Banco Santander Central Hispano — 9M 2002 Earnings Presentation on 6ix