Banco Santander, S.a. · BME:SAN
Banco Santander — H1 2025 Earnings Presentation
61 slides from Banco Santander's earnings presentation, Jul 30, 2025
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 July, 2025 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 2025 Earnings presentation
Slide 3: H1'25 Earnings Presentation
H1’25 Earnings Presentation 30 July 2025
Slide 4: Important information
2 Important information Non-IFRS and alternative performance measures Banco Santander, S.A. (“Santander”) cautions that this document may contain financial information prepared according to International Financial Reporting Standards (IFRS) and taken from our consolidated financial statements, as we
Slide 5: Important information
3 Important information • acquisitions, integrations, divestitures and challenges arising from deviating management’s resources and attention from other strategic opportunities and operational matters; • climate-related conditions, regulations, targets and weather events; • uncertainty over the scop
Slide 6: Index
4 Index H1'25 Highlights Progress on our strategy 1 Group review 2 Final remarks 3 Appendix 4
Slide 7: Well ahead on all our strengthened Investor Day 2025 targets
5 Well ahead on all our strengthened Investor Day 2025 targets RoTE post-AT1Payout RWAs with RoRWA > CoECET1 Note: our current ordinary shareholder remuneration policy is to distribute approximately 50% of Group reported profit (excluding non-cash, non-capital ratios impact items), distributed appro
Slide 8: Record H1 profit, with all global businesses contributing to our 2025 targets
6 Record H1 profit, with all global businesses contributing to our 2025 targets H1’25 att. profitQ2’25 att. profit Efficiency RoTE post-AT1 CoR CET1 TNAVps + Cash DPS Another record quarter resulting in double-digit H1 profit growth, with 8 million new customers YoY and high activity levels Strong o
Slide 9: Excellent business and commercial dynamics
7 Excellent business and commercial dynamics Strong revenue performance supporting net operating income and profit growth • Solid NII and record fees • Strong net operating income growth • CoR and RoTE improvement YoY Note: H1’25 ‘attributable profit' and 'underlying attributable profit’ were the sa
Slide 10: Consistent execution of ONE Transformation is driving higher revenue and lower costs
8 Consistent execution of ONE Transformation is driving higher revenue and lower costs … • Wealth: collaboration fees with CIB and Corporates reached €2.1bn (+8% vs. H1’24) • Consumer: expansion of OEM agreements • Multi-Nationals: +3% YoY revenue growth • Product simplification: 42% fewer products
Slide 11: Solid revenue growth across our 5 global businesses
9 15.7 39.4% 3.7 +2% +0.2pp +14% 6.4 41.5% 1.0 +2% +0.9pp -1% 4.4 43.7% 1.5 +9% +0.4pp +15% 2.0 35.7% 0.9 +14% -1.5pp +24% 2.8 42.2% 0.3 +17% -4.6pp +47%* 31.0 41.5% 6.8 +5% -0.1pp +18% +2.7pp 17.2% +0.2pp 10.4% -1.5pp 20.8% 16.0% +0.9pp 67.3% -7.0pp 28.8% +8.7pp … supported by solid revenue growth
Slide 12: Retail: another quarter of strong YoY profit growth
10 H1’25 FINANCIALS Note: data and YoY changes in constant euros. (1) Metrics cover all products and employees in the branch network in our 10 main countries. Retail: another quarter of strong YoY profit growth on the back of solid fee performance and better credit quality, as we become a digital ba
Slide 13: Consumer: strong profit growth in the quarter and successful deposit gathering
11 • We continue to enhance Openbank’s value proposition since its recent launch in the US, Mexico and Germany • Loans up, driven by auto. Strong deposit growth, both in DCBE and DCB US, is helping us to lower funding costs • Profit +16% QoQ, boosted by NII (+4%, margin management), fees (auto servi
Slide 14: CIB: improvement in profitability driven by 9% fee growth
12Note: data and YoY changes in constant euros. H1’25 FINANCIALS KEY DRIVERS % customer related revenue Fee growth (€ bn) % Total revenue / RWAs CIB: improvement in profitability driven by 9% fee growth year-on-year • Solid execution of our strategy focused on fees and capital-light business, drivin
Slide 15: Wealth Management & Insurance
13 H1’25 FINANCIALS Note: data and YoY changes in constant euros. (1) Annualized YTD net new money as a % of PB’s 2024 customer assets and liabilities (CAL). Annualized YTD net sales as a % of SAM’s 2024 AuMs. (2) Includes deposits and off-balance sheet assets. (3) Includes all fees generated by San
Slide 16: Payments
14 Note: data and YoY changes in constant euros. (*) YoY variation excluding the PagoNxt write-downs in Q2’24 of our investments related to our merchant platform in Germany and Superdigital in Latin America (€243mn, net of tax and minority interests). (1) Transactions include merchant payments, card
Slide 17: Improving profitability and value creation with EPS up 19%
15 15.1% 16.0% H1'24 H1'25 Note: TNAVps + Cash DPS includes the €10.00 cent cash dividend per share paid in November 2024 and €11.00 cent cash per share paid in May 2025, executed as part of our shareholder remuneration policy. Improving profitability and value creation with EPS up 19% and TNAVps +
Slide 18: Index
16 Index H1'25 Highlights Progress on our strategy 1 Group review 2 Final remarks 3 Appendix 4
Slide 19: Strong revenue performance supporting net operating income and profit growth
17 +4% 2,852 3,207 3,250 3,265 3,402 3,431 Q1'24 Q2 Q3 Q4 Q1'25 Q2 +1% +7% Profit (€ mn) 2,710 3,069 3,209 3,226 3,357 3,476 Strong revenue performance supporting net operating income and profit growth Profit (Constant € mn) +13% Note: H1’25 ‘attributable profit' and 'underlying attributable profit’
Slide 20: Revenue growth underpinned by customer activity across our businesses
18 31,010 29,639 +254 +103 +346 +247 +422 -0 H1'24 Retail Consumer CIB Wealth Payments CC H1'25 Revenue growth underpinned by customer activity across our businesses Note: data and YoY % changes in constant euros. YoY growth TOTAL REVENUE • >95% of total revenue is customer related • Solid revenue i
Slide 21: Net interest income and NIM
19 +2% 2.97% 2.89% 2.79% 2.92% 2.73% 2.78% +1% Excl. Argentina vs. H1’24 +4% NII up both YoY and QoQ, with solid performances across most global businesses on the back of effective balance sheet management NIM Performance NII NET INTEREST INCOME AND NIM Note: NIM = NII / Average earning assets in cu
Slide 22: Record H1 net fee income driven by global businesses
20 Record H1 net fee income driven by value added from our global businesses 6,684 6,135 +168 -41 +110 +142 +187 -17 H1'24 Retail Consumer CIB Wealth Payments CC H1'25 • Retail: − Strong growth on the back a more targeted product offering and customer increase (+7mn) − Of note, Mexico, Argentina and
Slide 23: ONE Transformation is driving 5% net operating income growth
21 8,350 8,882 8,682 9,185 8,923 9,222 Q1'24 Q2 Q3 Q4 Q1'25 Q2 6,278 6,128 6,294 6,706 6,399 6,466 CIB, WEALTH AND PAYMENTS ONE Transformation is driving 5% net operating income growth Efficiency 12M rolling Costs Net operating income Revenue 14,629 15,010 14,976 15,891 15,322 15,688 Retail Consumer
Slide 24: Solid credit quality with improvement across most of our businesses
22 Solid credit quality with improvement across most of our businesses 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. CoR, NPL, Coverage ratio and Stages in current euros. Co
Slide 25: Strong organic capital generation, with profitable front-book growth
23 13.0 -0.29 -0.06 -0.08 12.9 +0.54 +0.01 Mar-25 Att. Profit Capital distribution Net organic RWAs Regulatory & Models Markets & others Jun-25 Strong organic capital generation, with profitable front-book growth at 22% RoTE CET1 % Jun-25 or estimates Front book pricing RoRWA of new book Asset rotat
Slide 26: Value accretive capital redeployment is a top priority
24 Value accretive capital redeployment is a top priority: our recent inorganic transactions are consistent with our strict capital hierarchy criteria Improved our SBB target: at least €10bn in share buybacks for 2025 and 2026 earnings1 Accelerate the €10bn SBB execution1 using 50% of the proceeds o
Slide 27: Index
25 Index H1'25 Highlights Progress on our strategy 1 Group review 2 Final remarks 3 Appendix 4
Slide 28: Another record quarter that keeps us on track to meet our 2025 targets
26 Another record quarter that keeps us on track to meet our 2025 targets Fees Cost base CoR CET11 RoTE post-AT1 TNAVps + Cash DPS 2025 targets Mid-high single digit growth Down vs. 2024 in euros c.1.15% 13% operating range: 12-13% c.16.5% Double-digit growth through-the-cycle c.€62bnRevenue Note: t
Slide 29: Investor Day February 2026 London
27 INVESTOR DAY 25 FEBRUARY 2026 LONDON
Slide 30: Index
28 Index H1'25 Highlights Progress on our strategy 1 Group review 2 Final remarks 3 Appendix 4
Slide 31: Appendix
29 Appendix 2025 Investor Day targets summary Group P&L QoQ and excluding Argentina CET1 performance YTD Detail by global business and country Reconciliation of underlying results to statutory results Glossary and additional notes
Slide 32: 2025 Investor Day targets summary
30 TNAVps+DPS (Growth YoY) (1) Our current ordinary shareholder remuneration policy is to distribute c.50% of Group reported profit (excluding non-cash, non-capital ratios impact items), distributed approximately 50% in cash dividend and 50% in share buybacks. Execution of the shareholder remunerati
Slide 33: Appendix
31 Appendix 2025 Investor Day targets summary Group P&L QoQ and excluding Argentina CET1 performance YTD Detail by global business and country Reconciliation of underlying results to statutory results Glossary and additional notes
Slide 34: Group P&L QoQ variations and excluding Argentina
32 Group P&L QoQ variations and excluding Argentina Note: underlying P&L. Fees NII 2,929 3,030 3,152 3,143 Costs LLPs Revenue 2,859 2,928 3,029 2,940 Q1'24 Q2 Q3 Q4 Q1'25 Q2 14,073 14,844 14,818 15,047 10,400 10,787 10,803 10,974 +2% Constant €mn 5,993 6,290 6,176 6,191 Group quarterly performance e
Slide 35: Appendix
33 Appendix 2025 Investor Day targets summary Group P&L QoQ and excluding Argentina CET1 performance YTD Detail by global business and country Reconciliation of underlying results to statutory results Glossary and additional notes
Slide 36: CET1 YTD performance
34 13.0 -0.59 -0.20 -0.14 12.8 +1.08 +0.07 Dec-24 Att. Profit Capital distribution Net organic RWAs Regulatory & Models Markets & others Jun-25 CET1 YTD performance CET1 % 1 Note: Dec-24 ratio on a fully-loaded basis (as published in the Q4 2024 Financial Report), excluding the transitory treatment
Slide 37: Appendix
35 Appendix 2025 Investor Day targets summary Group P&L QoQ and excluding Argentina CET1 performance YTD Detail by global business and country Reconciliation of underlying results to statutory results Glossary and additional notes
Slide 38: Detail by global business
36 Detail by global business
Slide 39: Retail & Commercial Banking
37 KEY DATA Retail & Commercial Banking Note: Jun-25 data and YoY changes (loans, deposits and mutual funds in constant euros). P&L HIGHLIGHTS Loans €599bn -1% Mutual funds €105bn +18% Efficiency 39.4% +0.2pp CoR 0.89% -13bps RoTE post-AT1 17.2% +0.2pp Deposits €643bn +3% Underlying P&L* Q2'25 % Q1'
Slide 40: Retail Spain and Retail UK
38 RETAIL SPAIN Note: Jun-25 data and YoY changes (loans, deposits and mutual funds in constant euros). RETAIL UK Underlying P&L* Q2'25 % Q1'25 H1'25 % H1'24 NII 1,448 -1.3 2,915 -1.0 Net fee income 269 -7.6 560 0.1 Total revenue 1,766 -1.5 3,560 -1.0 Operating expenses -567 -0.7 -1,138 1.1 Net oper
Slide 41: Retail Mexico and Retail Brazil
39Note: Jun-25 data and YoY changes (loans, deposits and mutual funds in constant euros). RETAIL MEXICO RETAIL BRAZIL Underlying P&L* Q2'25 % Q1'25 H1'25 % H1'24 % H1'24¹ NII 735 0.1 1,491 8.4 -8.1 Net fee income 177 6.0 348 10.2 -6.5 Total revenue 891 2.3 1,787 6.5 -9.6 Operating expenses -390 1.0
Slide 42: Digital Consumer Bank
40 KEY DATA Digital Consumer Bank Note: Jun-25 data and YoY changes (new lending, loans and deposits in constant euros). P&L HIGHLIGHTS New lending €41bn -10% Loans €211bn +2% Efficiency 41.5% +0.9pp CoR 2.09% -8bps RoTE post-AT1 10.4% -1.5pp Deposits €130bn +10% Underlying P&L* Q2'25 % Q1'25 H1'25
Slide 43: DCB Europe and DCB US
41Note: Jun-25 data and YoY changes (loans, deposits and mutual funds in constant euros). DCB Europe DCB US Underlying P&L* Q2'25 % Q1'25 H1'25 % H1'24 % H1'24¹ NII 1,129 -0.3 2,350 2.2 1.2 Net fee income 90 14.4 175 34.1 32.8 Total revenue 1,270 0.5 2,631 0.1 -0.9 Operating expenses -520 -2.1 -1,09
Slide 44: Corporate & Investment Banking
42 KEY DATA Corporate & Investment Banking Note: Jun-25 data and YoY changes (loans, deposits in constant euros). P&L HIGHLIGHTS Loans €135bn -2% Deposits €125bn 0% CoR 0.09% -6bps Efficiency 43.7% +0.4pp RoTE post-AT1 20.8% +2.7pp • Good progress in our strategy focused on fees and capital-light bu
Slide 45: Wealth Management & Insurance
43 Wealth Management & Insurance P&L HIGHLIGHTS Note: Jun-25 data (AuMs); YTD data (net new money, net sales and GWPs). YoY changes in constant euros. (1) Annualized YTD net new money as a % of PB’s 2024 customer assets and liabilities (CAL). Annualized YTD net sales as a % of SAM’s 2024 AuMs. (2) I
Slide 46: Payments
44 • 106 million cards managed across the Group, with solid customer activity (spending +9% and average balance +17%) • Profit up 6% YoY, with NOI +23%, boosted by double-digit revenue growth (credit card activity) and cost control, with higher LLPs due to generalized volume growth, and models in Br
Slide 47: Corporate Centre
45 Corporate Centre • NII affected by lower interest rates • Losses on financial transactions improved, due to a lower impact from foreign currency hedges • Costs impacted by higher IT expenses • LLPs increased in line with our strategy to accelerate NPL ratio reductions, which is improving the Grou
Slide 48: Detail by country
46 Detail by country
Slide 49: Spain and UK
47 Note: Jun-25 data and YoY changes (loans, deposits and mutual funds in constant euros). SPAIN UK Underlying P&L* Q2'25 % Q1'25 H1'25 % H1'24 NII 1,806 1.5 3,585 -1.9 Net fee income 735 -4.1 1,503 1.3 Total revenue 3,036 -3.0 6,167 1.7 Operating expenses -1,051 0.2 -2,099 1.7 Net operating income
Slide 50: Portugal and Poland
48Note: Jun-25 data and YoY changes (loans, deposits and mutual funds in constant euros). PORTUGAL POLAND Underlying P&L* Q2'25 % Q1'25 H1'25 % H1'24 NII 336 -3.3 684 -18.9 Net fee income 129 2.7 255 5.0 Total revenue 489 -2.7 992 -13.1 Operating expenses -134 -1.6 -269 0.7 Net operating income 356
Slide 51: US and Mexico
49Note: Jun-25 data and YoY changes (loans, deposits and mutual funds in constant euros). US RoTE post-AT1 adjusted based on Group’s deployed capital calculated as contribution of RWAs at 12%, is 14.9%. US MEXICO Underlying P&L* Q2'25 % Q1'25 H1'25 % H1'24 % H1'24¹ NII 1,450 4.1 2,949 5.5 4.4 Net fe
Slide 52: Brazil
50Note: Jun-25 data and YoY changes (loans, deposits and mutual funds in constant euros). BRAZIL Underlying P&L* Q2'25 % Q1'25 H1'25 % H1'24 % H1'24¹ NII 2,338 1.6 4,740 3.7 -9.5 Net fee income 757 -0.3 1,549 2.3 -10.7 Total revenue 3,085 0.0 6,309 3.4 -9.7 Operating expenses -1,002 -1.1 -2,061 4.2
Slide 53: Argentina
51 Note: Jun-25 data and YoY changes (loans, deposits and mutual funds in current euros). (1) The exchange rate resulting from the sale of local bonds denominated in Argentine pesos in US dollars (dual denomination peso/dollar bonds). • In Q2 2024, given a significant divergence between the official
Slide 54: Appendix
52 Appendix 2025 Investor Day targets summary Group P&L QoQ and excluding Argentina CET1 performance YTD Detail by global business and country Reconciliation of underlying results to statutory results Glossary and additional notes
Slide 55: Reconciliation of underlying results to statutory results
53 Reconciliation of underlying results to statutory results EUR mn (1) Includes exchange differences. (2) Non-controlling interests in the statutory results column reflect all non-controlling interests, including those from Poland. Explanation of H1’25 adjustments: • In accordance with IFRS 5 requi
Slide 56: Appendix
54 Appendix 2025 Investor Day targets summary Group P&L QoQ and excluding Argentina CET1 performance YTD Detail by global business and country Reconciliation of underlying results to statutory results Glossary and additional notes
Slide 57: Glossary - Acronyms
55 Glossary - Acronyms • A2A: account-to- account • AM: Asset management • AuMs: Assets under Management • bn: Billion • bps: Basis points • c.: Circa • CET1: Common equity tier 1 • CHF: Swiss franc • CF: Corporate Finance • CIB: Corporate & Investment Banking • CoE: Cost of equity • Consumer: Digit
Slide 58: Glossary - Definitions
56 Glossary - Definitions PROFITABILITY AND EFFICIENCY • RoTE (Return on tangible equity): Profit attributable to the parent (annualized)1/ Average stockholders' equity2 (excl. minority interests) - intangible assets • RoTE (post-AT1): Profit attributable to the parent minus AT1 costs (annualized)1
Slide 59: Additional notes
57 Additional notes (1) As announced on 5 February 2025, the shareholder remuneration policy that the board intends to apply for the 2025 results consists of a total shareholder remuneration of approximately 50% of the Group reported profit (excluding non-cash, non-capital ratios impact items), to b
Slide 60: 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 61: 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 July 2025 By: /s/ José García Cantera Name: José García Cantera Title: Ch