Banco Santander, S.a. · BME:SAN
Banco Santander — Morgan Stanley European Financials Conference 2020
24 slides from Banco Santander's conference presentation, Mar 17, 2020
Slide 1: European Financials Conference
| 1 Confidential European Financials 17 th March 2020 Ana Botín Group Executive Chairman C on f e r en c e Morgan Stanley
Slide 2: Important Information
Confidential Important Information Non - IFRS and alternative performance measures In addition to the financial information prepared in accordance with International Financial Reporting Standards (“IFRS”) and derived from our financial statements, this presentation contains certain financial measure
Slide 3: COVID-19 Update
| 3 Confidential COVID - 19 Update Impact of Covid - 19 on the business • Santander has taken action to protect the wellbeing of our employees, customers and shareholders while ensuring that we continue to meet our obligations to all stakeholders − Employees in large centres working from home where
Slide 4: Index: Achievements & delivery
| 4 Co n f id e ntial Ind e x Achievements & delivery Santander for the future 1 2
Slide 5: In 2015 we set a strategy focused on customer loyalty
| 5 Confidential In 2015 we set a strategy focused on customer loyalty… Our purpose To help people and businesses prosper Our aim as a bank To be the best open financial services platform , by acting responsibly and earning the lasting loyalty of our people, customers, shareholders and communities O
Slide 6: While building a more responsible and sustainable bank
| 6 Confidential …while building a more responsible and sustainable bank Note: figures as of 2019 (not audited yet) and changes on a YoY basis (2019 vs. 2018) (1) Source: Mercer benchmark (2) Dow Jones Sustainability index 2019 (3) Microentrepreneurs are already included in the people financially em
Slide 7: Strong growth based on Scale, Customer Focus and Diversification
| 7 Confidential We have delivered strong growth based on Scale, Customer Focus and Diversification (1) Customer Satisfaction internal benchmark of active customers audited by Stiga / Deloitte (2) Market share in lending as of 3Q19 including only private owned banks. UK benchmark covers mortgage mar
Slide 8: Our strategy has delivered on Growth, Profitability and Strength
| 8 Confidential Our strategy has delivered on our Growth, Profitability and Strength €5bn Investment in digital and technology p.a. >€2bn T r ans f or mat i o n charges (1) In constant €; Adjusting for share count increase coming from scrip dividends; (2) Adjusting for share count increase coming f
Slide 9: Doubled profits and increasing CET1 since 2013
| 9 Confidential (1) Statutory attributable profit to the Group. (2) Source Bloomberg average Euribor 12 month per year. (3) For comparison purposes, capital ratio is calculated by applying Basel III (BIS II 11.71%). (4) Data calculated using the IFRS 9 transitional arrangements Since 2014 Underlyin
Slide 10: Significant improvement in profitability since 2015
| 10 Confidential Significant improvement in profitability since 2015… 2015 2019 R o TE Ro R W A 10.0 % 11.8 4 % 2019 2015 Capital discipline in growth: Organic c. 40% of our capital 1 with RoTE > CoE > 70 % of our capital 1 with RoTE > CoE Inorganic Value - creating acquisitions (Popular, Banif Por
Slide 11: Significant and increasing capital accumulation
| 11 Confidential This strong profitability has led to a significant and increasing capital accumulation S t r ength +40bps per annum 5 Year run - r a t e c.12% 5 Yr net capital accumulation J a n - 15 2019 2020 net capital accumulation 2020 9.65% +200 bps 11.65% c.+40 bps FL CET1 Jan 2015 - 2020
Slide 12: Better credit profile and CDS spreads than European peers
| 12 Confidential S& P M ood y ' s F i t c h 2 0 1 2 2 0 1 9 CDS prices source: Bloomberg as of 10 Mar. 2020. Figures in local currency. 9 10 11 12 13 14 15 16 17 S& P M ood y ' s F i t c h 176 104 65 76 99 63 94 58 63 BBB+ BBB BBB - BB+ A - A Senior unsecured LT ratings peer comparison Santander se
Slide 13: Strongest European bank under 2018 EBA stress test
| 13 Confidential …being the strongest European bank under the 2018 EBA stress test adverse scenario 694 657 625 576 533 437 381 363 341 334 288 265 219 193 141 FL CET1 erosion under the adverse scenario (bps) 395 bps SYSTEM AVERAGE 403 bps PEER AVERAGE Source 2018 EBA stress test S t r ength
Slide 14: Differentiated business model with predictable earnings growth
| 14 Confidential 121% 106% 86% 75% 67% 44% 42% 34% 9% Building on a differentiated business model that has delivered best - in - class predictable earnings growth for the last 20 years (1) Source: Bloomberg, with GAAP Criteria. Note: Standard deviation of the quarterly EPS starting from the first a
Slide 15: Index: Santander for the future
| 15 Co n f id e ntial Ind e x Achievements & delivery Santander for the future 1 2
Slide 16: Three-pillar plan to drive profitable growth
| 16 Confidential Execution of our three - pillar plan to drive profitable growth in a responsible way Improve operating performance Accelerate digitalisation through Santander Global Platform Optimise capital allocation Continue building a more Responsible Bank
Slide 17: Improving operating performance leveraging One Santander
| 17 Confidential Improving operating performance leveraging One Santander (1) Adjusted for excess of capital in the US. Otherwise 9%. (2) Adjusted for excess of capital in the US South America North America Investing together to improve commercial capabilities Und er l y i ng RoTE Ef f icie n cy 36
Slide 18: Ongoing capital allocation optimization
| 18 Confidential Ongoing capital allocation optimization to improve profitability Rebalancing to more profitable businesses Improved pricing, processes and governance Active management and senior team alignment Group Ro R W A 1 1.3% 1.6% Strong profitability improvement leading to higher capital ge
Slide 19: Accelerating digitalisation and building Santander Global Platform
| 19 Confidential Accelerating digitalisation and building Santander Global Platform Accelerate the t r a n s f ormation of our ‘core Banks’ Moving towards ONE SANTANDER to build simpler, faster and better services Provide faster and better global payments and solutions
Slide 20: Built with global open platforms
| 20 20 Built with global open platforms , leveraging our scale for efficiency and customer experience Run autonomously with dedicated management , with a blend of tech and banking talent Confidential Accelerate digitisation Best - in - class global payments and digital banking open solutions to ser
Slide 21: High growth and large addressable market: merchant and trade services
| 21 High growth and large addressable market… …with engaging propositions showing high growth.. … and ambitious mid - term goals Global Merchant Services Leveraging Getnet to build Global Merchant Services Scaling from 1 to 8 markets Global Trade Services One global platform to serve international
Slide 22: High growth and large addressable market: digital banking
| 22 High growth and large addressable market… …with engaging propositions showing high growth.. … and ambitious mid - term goals Financial inclusion platform to cost - effectively serve the bottom of the pyramid Targeting >5mn active customers in 7 markets Our global, full - service digital bank Co
Slide 23: Business model and track record support mid-term goals
| 23 Confidential Our business model and track record support delivery of our mid - term goals ’19 Investor Day Mid - term goals 2019 (1) Active customer who receive most of their financial services from the Group according to the commercial segment that they belong to. (2) Every physical or legal p
Slide 24: Thank You
| 24 Confidential Our purpose is to help people and businesses 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 b
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