Banco Santander, S.a. · BME:SAN
Banco Santander — Q1 2025 Earnings Presentation
53 slides from Banco Santander's earnings presentation, Jun 2, 2025
Slide 1: Q1'25 Institutional Presentation
Strategic and Financial Analysis. Financial Division Q1’25 Institutional Presentation
Slide 2: Index
INDEX Our business Group Links to Q1’25 results Final model and structure and public & activity remarks strategy businesses materials Logotipo El contenido generado por IA puede ser incorrecto.
Slide 3: Our business model and strategy
Our business model and strategy
Slide 4: Santander, a leading financial group
Q1'25 Highlights Santander, Total assets (€ bn) 1,845 a leading Customer loans (€ bn excluding reverse repos) 1,019 financial group Customer deposits + mutual funds (€ bn excluding repos) 1,219 Branches 7,910 Q1'25 Net operating income (pre-provision profit) (€ mn) 9,048 Q1'25 Attributable profit (€
Slide 5: The Santander Way
OUR PURPOSE The Santander Way To help people and businesses prosper OUR AIM Who we are and what guides us To be the best open financial services platform, by acting responsibly and earning the lasting loyalty of our people, customers, shareholders and communities OUR HOW Everything we do should be S
Slide 6: Santander business model
Santander business CUSTOMER FOCUS SCALE DIVERSIFICATION model Business Digital bank Global & Our business model Geographical with branches in-market based on unique Balance sheet competitive advantages is the foundation for generating value for Leveraging our unique business model and network effect
Slide 7: Customer focus
01 Customer focus TOTAL CUSTOMERS DIGITAL CUSTOMERS 175mn 61mn +9mn +5mn Customer focus is the essence of our strategy ACTIVE CUSTOMERS 104mn +6% 63% +4mn Transactions per active customer Products/services digitally available Note: Data as of Mar-25 and YoY changes. Total transactions include mercha
Slide 8: Customer focus
01 Traditional Digital Customer focus banking banking (branches, ATMs, (mobiles, tablets, retail agents, pcs, laptops, collaborative spaces…) smartwatches…) To bring all our customers to a common operating OUR CUSTOMER GROWTH INVESTMENTS ARE CENTRED AROUND THREE BASIC THINGS model, while Branches: 7
Slide 9: Scale
02 Scale Retail Retail & Commercial Banking Consumer Digital Consumer Bank Our activities are CIB Corporate & Investment Banking organized under ONE Santander five global businesses Wealth Wealth Management & Insurance Payments Payments 9
Slide 10: Scale: global and in-market
GLOBAL SCALE | FIVE GLOBAL BUSINESSES 02 Retail & Digital Corporate & Wealth Commercial Consumer Bank Investment Management Payments Scale Banking Banking & Insurance IN-MARKET SCALE Market shares 9% #5 Loans Auto lending 8% 2% DCB Santander has a Deposits Deposits 11% Europe unique combination 17%
Slide 11: Diversification
03 CUSTOMER LOANS CUSTOMER DEPOSITS By product/business1 By product/business1 Diversification CIB Other 5% CIB Other 6% 14% Retail: 14% Individuals 32% home 32% demand mortgages deposits Consumer 14% 21% Consumer 6% 9% Retail: 8% 16% Individuals time other individuals 9% Geographical 14% Retail: dep
Slide 12: Diversification: balance sheet
03 SIMPLE, TRANSPARENT AND EASY TO ANALYSE BALANCE SHEET Diversification Medium-low risk profile Strong liquidity ratios Strong solvency ratios well above requirements Focus on capital efficiency Rock-solid and and asset rotation diversified balance sheet with Highly collateralized and Stable and di
Slide 13: In summary
LOWER VOLATILITY RELIABLE RISK-RETURN PROFILE OF RESULTS In summary Pre-provision profit / loans EPS volatility2 3.03% 3.36% 3.36% 11% 2.90% 2.83% 2.97% 2.89% 2.80% 2.49% 2.70% 2.57% 38% Cost of risk1 41% 1.28% Our results show that 1.25% 1.18% 1.07% 1.00% 1.00% 0.99% 1.18% 1.15% 1.14% 0.77% 41% our
Slide 14: Our three tenets
Our three tenets Delivering double-digit value creation, on average Think Value through-the-cycle We are in a phase of value creation, driven Think Customer Building a digital bank with branches with well-targeted products and services to grow our customer base by higher profitability underpinned by
Slide 15: Sustainability
Sustainability Q1’25 2025 targets Green finance raised and facilitated €144.9bn €120bn We continue to make progress on our Sustainability Socially responsible €108.0bn €100bn investments (AuMs) agenda Financial inclusion (# People) 4.8mn 5mn More information available at www.santander.com/en/our-app
Slide 16: Group structure and businesses
Group structure and businesses
Slide 17: Group structure in 2025
PRIMARY SEGMENTS (GLOBAL BUSINESSES) Group Retail Consumer CIB Wealth Payments structure in 2025 SECONDARY SEGMENTS Spain Portugal US Brazil Argentina UK Poland Mexico Chile DCB Europe Group functions and Corporate Centre activities1 Corporate Strategy Development People & Culture Financial Regulato
Slide 18: Global business
Global business 18
Slide 19: Retail & Commercial Banking
Retail & Commercial Banking ‘A global business integrating all our retail and commercial banking activities to better serve our customers, improve efficiency and drive value creation’ Q1'25 Highlights Strategic priorities Customer loans (€ bn) 608 • Continue our transformation journey towards our vi
Slide 20: Digital Consumer Bank
Digital Consumer Bank ‘Global leader in auto financing and digital consumer activities’ Delivering the best solutions to customers (B2B and B2C), while being the most cost competitive player in the market Q1'25 Highlights Strategic priorities Customer loans (€ bn) 214 • Converge towards global platf
Slide 21: Corporate & Investment Banking
Corporate & Investment Banking ‘Santander CIB supports corporate and institutional clients, delivering tailored services and high value-added wholesale products suited to their complexity and sophistication’ Q1'25 Highlights Strategic priorities Customer loans (€ bn) 142 • Our aim is to become a foc
Slide 22: Wealth Management & Insurance
Wealth Management & Insurance ‘We want to become the best wealth and insurance manager in Europe and the Americas’ Q1'25 Highlights Strategic priorities Total assets under management1 (€ bn) 511 • Continue building our global platform, accessing new markets and leveraging the connectivity of our tea
Slide 23: Payments
Payments - ’One-of-a-kind paytech business that offers innovative payment solutions’ Q1'25 Highlights Strategic priorities • We are a one-of-a-kind paytech business backed by Santander EBITDA margin 28.6% • Helping our customers prosper and accelerate their growth through a one-stop shop, providing
Slide 24: Payments - Cards
Payments - Cards ‘Provide exceptional payments experience, fostering customer loyalty and leveraging transactional data to enhance profitability’ Q1'25 Highlights Strategic priorities # cards (mn) 106 • Profitably expand our credit business through the use of data and models (Cards Data Lab), exploi
Slide 25: Group functions and Corporate Centre activities
Group functions and Corporate Centre activities • Global T&O strategy • People & Culture strategy • Risk and compliance • Corporate governance • Our brand 25
Slide 26: Technology and Operations (T&O)
Technology and Operations (T&O) ‘The T&O mission is to help Santander’s global businesses in their digital transformation, providing them a state-of-the-art global platform, with innovative capabilities and zero back office’ Global T&O capabilities are key for our digital transformation Composed of
Slide 27: People & Culture
People & Culture Our people are fit for purpose, work in great teams with great leaders delivering our strategy and supported by SPF experience. All while providing purpose, autonomy and mastery, the drivers of motivation Lead in AI Deliver One Global adoption to Agile P&C that drive the provides tr
Slide 28: Risk management and Compliance
Risk management and Compliance Our risk management and compliance is key to making us a solid, safe and sustainable bank that helps people and businesses prosper Our Risk management and Compliance model is based on: We also have advanced tools for an effective risk management: A 3 lines of defence m
Slide 29: Corporate governance
Corporate governance ‘As a responsible bank, we have clear and robust governance to ensure a long-term sustainable business model’ Composition of the board of directors, Mar-25 Board committees Executive Diversified and well-balanced shareholder base 20.0% Non-executive directors (independent) Audit
Slide 30: Corporate governance
Corporate governance 'Best practices on robust governance are channelled to all subsidiaries' Group-subsidiary governance model Group Subsidiary B The Group-subsidiary governance model enhances control and oversight through: Board of Directors Subsidiary A A Presence of the Group in the subsidiaries
Slide 31: Santander brand
Santander brand 'Our brand embeds the essence of the Group's culture and identity' Santander is one of the most valued brands in the world 3 rd Best Global Retail Bank Brand by Interbrand’s Best Global Brands Ranking, 2024 As one of our most important strategic assets, our brand helps us connect wit
Slide 32: Q1'25 results & activity
Q1’25 results & activity
Slide 33: Progress against Investor Day targets
We have entered the last year of our third strategic cycle well ahead in all our key Investor Day targets for 2025, that we improved alongside our Q4’24 results Q1’25 vs. ID targets for 2025 and 2025 targets upgraded in Q4’24 STRENGTH DISCIPLINED CAPITAL ALLOCATION CET1 RWAs with RoRWA > CoE 12.9% 8
Slide 34: Strong start to the year
Strong start to the year, with all global businesses growing revenue and profit Q1’25 revenue Q1’25 att. profit Another record profit in Q1, with 9 million new customers YoY and good activity levels €15.5bn €3.4bn +1% +19% Efficiency RoTE post-AT1 Strong operating performance and profitability on th
Slide 35: Continuing strong operational performance driving profit growth
Continuing strong operational performance driving profit growth Group P&L Current Constant € million Q1'25 Q1'24 % % NII excluding Argentina: NII 11,378 11,983 -5 -2 +0% in current +4% in constant SANTANDER Net fee income 3,369 3,240 4 9 Other income 790 157 n.m. n.m. Total revenue excluding Argenti
Slide 36: Consistent execution of ONE Transformation
Consistent execution of ONE Transformation is driving both revenue and costs ahead of plan … Global & Network Global Tech FY’22 ONE Transformation businesses1 capabilities & others Q1’25 45.8% -253bps -75bps -79bps 41.8% • Product simplification: 40% fewer • Wealth: collaboration fees with • Global
Slide 37: Supporting value creation across global businesses
… supporting value creation across our 5 global businesses Revenue Contribution to Profit Profitability Profitability Q1’25 Efficiency (€ bn) Group revenue (€ bn) Q1’25 2025 targets RoTE post-AT1 7.9 50% 39.4% 1.9 17.6% c.17% RETAIL +2% -1.3pp +28% +2.3pp 3.2 41.9% 0.5 9.7% CONSUMER 21% c.12% +2% +0
Slide 38: Retail: strong YoY profit growth
Retail: another quarter of strong YoY profit growth on the back of efficiency gains and reduced CoR Q1’25 FINANCIALS Loans Deposits CoR • Our transformation is delivering solid results, as reflected in fee growth (+7%), efficiency improvement (-1pp to 39.4%) and higher €608bn €644bn 0.91% RoTE (+2pp
Slide 39: Consumer: higher loans and deposits driving profit
Consumer: higher loans and successful deposit gathering are driving profit growth Q1’25 FINANCIALS Loans Deposits CoR • Openbank launched in Mexico and Germany. In the US, new €214bn €133bn 2.14% partnership with Verizon announced to boost growth +4% +12% +1bps • Loans up, driven by auto. Strong dep
Slide 40: CIB: improved profitability, fee growth
CIB: improvement in profitability driven by 11% fee growth year on year Q1’25 FINANCIALS Loans Deposits CoR • Further improvement in our key drivers as we execute our strategy focused on fee and capital-light business, driving RoTE above 21%, €142bn €134bn 0.08% while we maintain a leading position
Slide 41: Wealth: strong profit growth
Wealth: strong profit growth, with revenue growth across business lines and collaboration fees up double-digits Q1’25 FINANCIALS Net new money Net sales Gross written • Increased focus on higher-margin investment solutions and (PB) (SAM) premiums services, improving recurrency levels €5.7bn €4.8bn €
Slide 42: Payments: revenue growth through global platforms
Payments: driving revenue growth and scale through global platforms Q1’25 FINANCIALS Loans Getnet TPV Cards Spending • On track with our key strategic priorities to capture scale though €25bn €56bn €81bn global platforms, driving cost per transaction improvements +15% +14% +7% • Increased activity b
Slide 43: Improving profitability with EPS up 26%
Improving profitability with EPS up 26% and 14.5% value creation RoTE post-AT1 EPS TNAVps + Cash DPS € cents € per share Cash DPS: €10.0 cents +1.7pp +26% +14.5% 21.5 15.8% 17.0 5.56 14.1% 5.46 4.86 Q1'24 Q1'25 Q1'24 Q1'25 Mar-24 Mar-25 Since 2021, including the second buyback against 2024 results,
Slide 44: Final remarks
Final remarks
Slide 45: Another record quarter on track to meet 5 targets
Another record quarter that puts us on track to meet our 2025 targets 2025 targets Q1’25 €15.5bn Revenue c.€62bn +1%YoY in euros ✓ Revenue and costs on track Mid-high single +9% on the back of our consistent execution Fees digit growth in constant euros, YoY ✓ of ONE Transformation Down vs. 2024 -1%
Slide 46: Links to public materials
Links to public materials
Slide 47: Links to Grupo Santander public materials
Links to Grupo Santander public materials For additional information on the Group, please click on the images or icons below Q1’25 financial results Other information Financial report Earnings presentation Series Shareholders report 2024 Digital annual review Global business Press release Fixed inco
Slide 48: Glossary
Glossary
Slide 49: Glossary - Acronyms
Glossary - Acronyms • A2A: account to account • FY: Full year • QoQ: Quarter-on-Quarter • AM: Asset management • ID: Investor Day • Repos: Repurchase agreements • AuMs: Assets under Management • IFRS 9: International Financial Reporting • Retail: Retail & Commercial Banking • bn: Billion Standard 9,
Slide 50: Glossary - Definitions
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 / A
Slide 51: Important information
Important information Non-IFRS and alternative performance measures Banco Santander, S.A. (“Santander”) cautions that this presentation may contain financial information prepared according to International Financial Reporting Standards (IFRS) and taken from our consolidated financial statements, as
Slide 52: Important information
Important information • exposure to market risks (e.g., risks from interest rates, foreign exchange rates, equity prices and new benchmark indices); • potential losses from early loan repayment, collateral depreciation or counterparty risk; • political instability in Spain, the UK, other European co
Slide 53: 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: