Banco Santander, S.a. · BME:SAN
Banco Santander — Investor Day (February 2023)
29 slides from Banco Santander's investor day presentation, Feb 28, 2023
Slide 1: Santander Investor Day
«> Santander INVESTOR | 22f2bvev DAY | tonpon Héctor Grisi Group CEO
Slide 2: Important information: forward-looking statements
Important information Forward - looking statements Santander hereby warns that this document contains “forward - looking statements” as per the meaning of the U . S . Private Securities Litigation Reform Act of 1995 . Such statements can be understood through words and expressions like “expect”, “pr
Slide 3: APMs, non-IFRS measures and non-financial information
Nonetheless, the APMs and non - IFRS measures are supplemental information ; their purpose is not to substitute IFRS measures . Furthermore, companies in our industry and others may calculate or use APMs and non - IFRS measures differently, thus making them less useful for comparison purposes . For
Slide 4: Entering a new phase of shareholder value creation: 2023-2025 targets
4 P r ofi t ab ili ty RoTE 15 - 17 % >12% St r ength CET1 FL c.85% Disciplined capital allocation RWA with RoRWA > CoE P a y out Cash dividend + SBB 50% Shareholder remuneration Note: Target payout will be c.50% of group reported profit (excluding non - cash, non - capital ratios impact items), dist
Slide 5: Global and network businesses to increase local banks' profitability
5 Global and network businesses to increase local banks’ profitability >30% of revenue currently from global and network businesses SCIB, WM&I, PagoNxt, Auto business As a result, we aim to be the most profitable bank in every market We are Top 3 in profitability in 9 out of our 10 markets Retail &
Slide 6: Pillars for value creation across the Group
6 5 pillars for value creation across the Group, with focus on Retail & Commercial banks … Cap i t al RWA with RoRWA > CoE Dig i tal Bank with Branches 2 3 5 4 Customer activity Transactions volume growth 1) Those customers who meet transactionality threshold in the past 90 days. Customer centric Ne
Slide 7: Specific execution plans through 2025
7 1) Includes merchant acquiring, cards and electronic A2A number of transactions. …with specific execution plans through 2025 Branch model (Digital bank with branches) Exceptional UX and advanced data analytics total cu s t o me r s active cu s t o me r s c . 2 00 mn c . 125 mn IT infrastructure an
Slide 8: One Transformation: common operating and business model
8 Data as of 31 December 2022. We will converge our Consumer & Commercial customers to a common operating and business model – One Transformation Santander b a n k s Less time spent on operations in branches… % Operational Activity in Branches Santander Portugal Santander b a n k s … with a high lev
Slide 9: One Transformation: Accelerating execution in US
9 One Transformation | Accelerating execution in US 1) Excludes business lending products. 2) Total expense for retail bank (SBNA) and administrative US support costs (Hold Co). 3) Efficiency ratio for retail bank. 4) Non - interest expense assigned to retail deposit servicing (excluding marketing c
Slide 10: A tried and tested process
10 A tried and tested process Retail & Commercial banks Global and network bus i n e ss e s One Transformation Improve customer activity and take advantage of “learning” from best in Group Bring to maximum speed capabilities of SCIB, WM&I, Payments and Auto business Simplify products, automate & dig
Slide 11: Aiming to be the most profitable bank in each market
11 Aiming to be the most profitable bank in each
Slide 12: Europe: One Transformation
12 Europe | One Transformation - Largest profitability increase & capital contribution to Group Customer centric & activity Increased loyalty, through better customer service & experience Active customers growth target >+5% in 2022 - 2025 Simplification & automation Simplification & automation and a
Slide 13: Spain deep dive: radical transformation to enhance efficiency and profitability
13 1) Total active customers Santander Spain excluding subsidiaries and SCIB. 2) Excluding inflation impact. Spain deep dive | Radical transformation to enhance efficiency & profitability Customer centric & activity Redefine branch model and gain share of wallet to deliver growth Simplification & au
Slide 14: North America: Boosting sustainable profitability levels
14 North America | Boosting sustainable profitability levels US c.55% of revenue currently from global and network businesses +5% SCIB, WM&I and Auto total revenue growth CAGR 22 - 25 target 74% Currently from global and network businesses Plan : Modernize our depository platform to build a digital
Slide 15: US: Focused model committed to profitable growth
15 US | Focused model committed to profitable growth across core businesses 1) Adjusted RoTE target, based on Group’s deployed capital calculated as contribution of RWAs at 12%. 2) Through - the - cycle. 3) CAL – Customer Assets and Liabilities. Targeting segments with proven competitive advantage a
Slide 16: US: Focus on improving deposit cost to serve and scalability
16 1) 2) 3) 4) Number of products on sale driven by multiple variations within each category (retail vs commercial deposit and money market accounts, CDs with different tenures, etc.). Non - interest expense assigned to retail deposit servicing (excluding marketing costs) based on $41B of average re
Slide 17: South America: Regional leader to benefit from global network
17 1) Total active customers. South America | Regional leader to benefit from global network & structural growth Customer centric & activity Loyal customers and transactional business Simplification & automation Improve our cost management Network contribution Take advantage of our unique status as
Slide 18: Brazil deep dive
18 Brazil deep dive | Increased profitability & risk - adjusted returns from higher customer penetration & lower costs Customer centric & activity Increase loyalty Simplification & automation Further improve cost to income Network contribution Become a top player in investments and insurance Discipl
Slide 19: DCB: Profitable growth across cycle
19 1) Operational expenses over average assets. DCB | Profitable growth across cycle DCB Profitable growth 2025 Customer centric & activity Leasing, subscription & BNPL platforms Simplification and automation Evolve from self - contained units to common platforms Network contribution Leverage our gl
Slide 20: Increased profitability across the board: RoTE targets
20 1) Contribution to Group’s profit excluding Corporate Centre. 2) North America 2025 RoTE : calculated using US RoTE adjusted based on Group’s deployed capital calculated as contribution of RWAs at 12%. The result of our plans: Increased profitability across the board RoTE targets Contribution to
Slide 21: SCIB, WM&I, Auto, PagoNxt Payments
S CIB Santander Corporate and Investment Banking WM&I Wealth Management and Insurance A u t o 21 P P a a y g m oN e x n t ts
Slide 22: SCIB: global scale and local expertise
22 SCIB | Our global scale & local expertise provide differentiated value - added to our clients RoTE target 2019 2022 2025 >15% SCIB Dz s current contribution to Europe revenue Europe Strengthen our advisory capabilities leveraging a pan - European platform >10% SCIB Dz s current contribution to Nort
Slide 23: WM&I: Aim to be a top operator
23 1) Including fees generated by asset management and insurance ceded to the commercial network. WM&I | Aim to be a top operator with a strong share in all relevant markets RoTE target WM&I Plans c . 6 0 % 2022 2025 60% Continue to build our global platform, push further specialization of the busin
Slide 24: Payments: PagoNxt and Global Cards
24 1) Total transactions include merchant payments, cards and electronic A2A payments. 2) Efficiencies in Tech & Ops costs. 3) Merchant platform cost per transaction includes all PagoNxt technology platforms: PNMS LatAm, PNM EU, Getnet BR. Cost per transaction defined as OPEX divided by # transactio
Slide 25: Auto: Leverage global OEM relationships
25 1) Adjusted based on Group’s deployed capital calculated as contribution of RWAs at 12%. Leverage our global OEM relationships to expand the business across our global footprint Profitable growth Adj. RoTE 1 target >15% Sustainable growth above the market average Continue to grow above the market
Slide 26: Santander
Santander
Slide 27: Increased profitability across the board: RoTE targets by region and business
27 1) North America 2025 RoTE : calculated using US RoTE adjusted based on Group’s deployed capital calculated as contribution of RWAs at 12%. Global & network businesses Regions’ RoTE targets 15 - 17 % ROTE 2023 - 25 target Revenue CAGR 2022 - 2025 target S CIB c.10% A u t o c.7% c.30% W M &I c.10%
Slide 28: Entering a new phase of shareholder value creation: 2023-2025 targets
28 P r ofi t ab ili ty RoTE 15 - 17 % >12% St r ength CET1 FL c.85% Disciplined capital allocation RWA with RoRWA > CoE P a y out Cash dividend + SBB 50% Shareholder remuneration Note: Target payout will be c.50% of group reported profit (excluding non - cash, non - capital ratios impact items), dis
Slide 29: Thank You
2 9 Our purpose is to help people and business prosper. Our culture is based on believing that everything we do should be: Thank You. 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 undersigne