Banco Santander, S.a. · BME:SAN
Banco Santander — 9M 2021 Earnings Presentation
110 slides from Banco Santander's earnings presentation, Oct 27, 2021
Slide 1: 9M'21 Earnings Presentation
27 October 2021 9M’21 Earnings Presentation All. Together. Now.
Slide 2: Important information
Important information Non-IFRS and alternative performance measures This presentation contains, in addition to the financial information prepared in accordance with International Financial Reporting Standards (“IFRS”) and derived from our financial statements, alternative performance measures (“APMs
Slide 3: Important information
Important information Numerous factors could affect our future results and could cause those results deviating from those anticipated in the forward-looking statements. Other unknown or unpredictable factors could cause actual results to differ materially from those in the forward-looking statements
Slide 4: Index
Index 1 2 3 4 Highlights and Business Key Appendix Group performance areas review takeaways 4
Slide 5: Delivered another strong set of results in Q3, reflecting business momentum
Delivered another strong set of results in Q3, reflecting business momentum • Net operating income up 11% YoY driven by the 8% increase in total income (volumes: +4% loans; +6% deposits; +17% mutual funds) and efficiency improvement Growth • Widespread growth across regions and businesses • Increase
Slide 6: Steady customer growth and increased digitalization led to strong revenue generation and efficiency improvement
Steady customer growth and increased digitalization led to strong revenue generation and efficiency improvement 9M'21 and YoY changes 9M'21 and YoY changes in constant euros +3% +8% Total customers 152 mn Total income c. EUR 35 bn +39% +11% # Digital transactions 2,805 mn Net operating income c. EUR
Slide 7: 9M underlying profit of EUR 6.4 billion, driven by solid net operating income growth
9M underlying profit of EUR 6.4 billion, driven by solid net operating income growth (+11%1 YoY), improved efficiency and lower cost of credit Underlying Contribution att. profit1 to Group’s % change 9M'21 vs. 9M'20 (EUR mn) Underlying profit3 EUR million 9M'21 9M'20 Euros Constant euros NII 24,654
Slide 8: Strong revenue drove earnings growth in Q3, with some seasonality in provisions in the US
Strong revenue drove earnings growth in Q3, with some seasonality in provisions in the US +4% QoQ Underlying attributable profit 11,808 11,502 Constant EUR mn 11,172 11,317 11,137 +3% QoQ 10,672 Total 10,371 income 2,165 2,142 2,072 1,738 1,472 1,445 +2% QoQ 5,148 4,961 5,107 5,321 5,153 5,265 5,360
Slide 9: NII up 7% YoY driven by an outstanding volume performance and margin management
NII up 7% YoY driven by an outstanding volume performance and margin management Volume growth 9M'21 vs. 9M'20 Q3'21 vs. Q2'21 • NII growth YoY and QoQ was driven by higher lending and +4% +1% deposit volumes, partially offset by seasonality in Europe Loans YoY QoQ • Activity picked up in the quarter
Slide 10: Net fee income up 8% YoY, recovering to pre-pandemic levels
Net fee income up 8% YoY, recovering to pre-pandemic levels and growing in higher value-added services and products Activity rebound 9M'21 vs. 9M'20 Q3'21 vs. Q2'21 PoS turnover +40% +14% • Strong acquiring turnover recovery boosted by Cards turnover +25% +7% • Overall growth in cards turnover Digit
Slide 11: Continued progress on driving efficiencies despite accelerating inflation
Continued progress on driving efficiencies (mainly in Europe: -657 bps YoY) despite accelerating inflation. Costs fell 1% in real terms Group Costs by region 9M'21 vs. 9M'20 - Constant euros Efficiency ratio -123 bps -7% -3% Europe -1.5% -2% +5% 46.8% 45.6% North +8% America +8.5% +3% South +1% 9M'2
Slide 12: Cost of credit remained well below 1%
Cost of credit remained well below 1%. In Q3, LLPs reflected seasonality in the US Loan-loss provisions Credit quality indicators Constant EUR bn Sep-20 Jun-21 Sep-21 Cost of credit1 1.27% 0.94% 0.90% 3.5 3.0 2.6 2.7 2.0 2.2 NPL ratio 3.15% 3.22% 3.18% 1.8 Coverage ratio 76% 73% 74% Q1'20 Q2 Q3 Q4 Q
Slide 13: Strong organic generation maintained fully-loaded CET1 ratio at top end of target range
Strong organic generation, which enabled us to maintain the fully-loaded CET1 ratio at the top end of our 11-12% target range… Fully-loaded CET1 ratio quarterly evolution % +0.48 -0.16 -0.17 11.85 11.70 Jun-21 Organic Regulatory Markets Sep-21 generation & Models & others (1) (2) Phased-in CET1 rati
Slide 14: Outstanding growth in profitability and TNAVps
…whilst we continued to deliver outstanding growth in profitability and TNAVps Underlying RoTE Underlying earnings per share TNAV per share EUR cents EUR 12.6% TNAV + Dividend per share1: 34.4 +1.4% QoQ; +6.5% YoY 3.98 3.99 7.1% 7.4% 18.7 3.82 9M'20 2020 9M'21 9M'20 9M'21 Sep-20 Jun-21 Sep-21 Statut
Slide 15: Committed to delivering shareholder value
Committed to delivering shareholder value Shareholder remuneration policy for 2021 40% pay-out Interim distribution in Nov-211 of Group’s FY21 underlying profit Total value Remuneration EUR 1.7 bn To be split in equal parts: Payable in two cycles: 40% of H1’21 underlying profit Cash dividend payment
Slide 16: ESG: supporting the green transition of our clients
ESG: supporting the green transition of our clients and committed to our climate change goals… E Environmental - Ambition to be Net Zero by 2050 Net-Zero Banking Alliance Green finance mobilized Santander Green Bond Setting decarbonization Goal: EUR 120 bn 9M’21 Global League Issuances targets by 20
Slide 17: Building a more inclusive society
… whilst we continue building a more inclusive society S Social G Governance Santander finance for all Diversity & Inclusion An independent and diverse Group Board Goal: 10 mn of financially Goal: 30% women in senior Independent ESG in compensation Women empowered people by 2025 leadership positions
Slide 18: Index
Index 1 2 3 4 Highlights and Business Key Appendix Group performance areas review takeaways 18
Slide 19: Geographic and business diversification continued to be a key growth driver
Our geographic and business diversification continued to be a key growth driver Digital Customer Customer Net operating Underlying Underlying customers loans deposits income att. profit RoTE 9M'21 vs. 9M'20 (mn) (EUR bn) (EUR bn) (EUR mn) (EUR mn) 15.9 567 589 6,108 2,293 8% Europe +6% +3% +4% +29%
Slide 20: Spain
The pick up of activity in individuals, notably mortgages and consumer lending, was offset by the continued slowdown in SME and corporate demand after 2020 highs Spain Q3 profit up boosted by improved trends in LLPs, further cost reductions and SRF contribution in Q2. NII decreased mainly due to CIB
Slide 21: United Kingdom
In Q3, continued revenue improvement, cost reductions and near zero LLPs Solid performance YoY across the P&L: volume growth, margin management UK (NIM: +26 bps), strong efficiency improvement and cost of credit well below 10 bps As a result, significant improvements in efficiency and profitability,
Slide 22: Brazil
Our growth strategy focused on improving customer service, which enabled us to accelerate customer acquisition and increase loyalty Brazil Loans rose at double-digit rates YoY, with controlled credit quality and lower cost of risk Profit up YoY: higher revenue (volumes and fee income), strong cost c
Slide 23: USA
Profit grew YoY boosted by net operating income (+17% excluding Puerto Rico and Bluestem portfolio disposals) and significant LLP savings USA Revenue up YoY mainly driven by auto leasing results. NII and fees comparison affected by disposals (excluding them: NII +7%; fees +8%; total income +14%) Pro
Slide 24: Mexico
Continued double-digit growth of our loyal and digital customer base Loans affected by corporates but started to show signs of recovery: individuals +11% YoY with mortgages +14% Mexico Slight profit increase YoY due to NII pressures (lower rates and lending) and reduced trading gains (ALCO sales in
Slide 25: Digital Consumer Bank
New lending well above 9M’20 (+11% YoY). Activity in Q3 dampened by worldwide production Digital issues in new auto while used vehicles were broadly flat. Consumer new lending increased Digital Consumer Bank Consumer Profit up YoY driven by revenue increases (net fee income boosted by higher activit
Slide 26: Global businesses
Global businesses Corporate & Investment Banking Wealth Management & Insurance Commercial flows YTD: Private Banking EUR 7.9 bn; SAM EUR 6.3 bn. Another strong set of results in Q3'21 Strong underlying profit growth YoY backed by all revenue lines and a Gross written premiums (Insurance): +5% YoY bo
Slide 27: PagoNxt: continued momentum in Q3
Continued momentum in Q3 Active corporate/ business clients2 Getnet franchise continues to grow: 7.3k • Brazil: Getnet Brazil has recorded very significant market shares gains in • 8 markets connected the country (16% in Total Payments Volume and > 30% in e-commerce) Trade • Q3 customers +80% vs. Q1
Slide 28: Corporate Centre
Lower revenue affected by the positive impact of FX hedging in 2020 Corporate Operating expenses decreased in real terms driven by streamlining and Centre simplification measures Significantly lower provisions due to charges in 9M'20 for certain holdings whose valuation was affected by the crisis P&
Slide 29: Index
Index 1 2 3 4 Highlights and Business Key Appendix Group performance areas review takeaways 29
Slide 30: 9M'21 Key takeaways
9M'21 Key takeaways Volume growth and profitability Solid P&L performance improvement Sound revenue Revenue Volume growth Loans: Funds: performance +8% YoY and QoQ +32 bn YoY +73 bn YoY Net operating Increasing capital FL CET1 Und. RoTE Efficiency gains -123 bps income ratio and 11.85% 12.6% +11% pr
Slide 31: Index
Index 1 2 3 4 Highlights and Business Key Appendix Group performance areas review takeaways 31
Slide 32: Appendix
Appendix Primary segments and other countries Secondary segments Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements Glossary 32
Slide 33: Europe
Revenue increased YoY driven by NII (UK mortgages and funding cost management), net fee income in most countries and strong increase in SCIB Strong efficiency improvement as a result of the ongoing optimization plans Europe Solid performance in credit quality after LLPs dropped in most countries (re
Slide 34: Portugal
Sharp rise in digital and mobile customers leading to higher digital sales penetration Continued strength in customer loans driven by corporate and mortgage new business Portugal Profit up YoY boosted by net fee income, ALCO portfolio sales, cost control and lower LLPs more than offsetting weaker NI
Slide 35: Poland
Recovery in Retail and SME banking activity reflected in record mortgage loan sales and new customer acquisition Poland Net operating income after LLPs up 34% YoY supported by strong net fee income and a sharp fall in LLPs, more than offsetting lower NII (lower interest rates) Profit impacted by a c
Slide 36: North America
Accelerated growth in loan and customer fund volumes, driven by better performance in Mexico and the US North Strong profit growth YoY boosted by cost of credit improvement mainly in the US and revenue increase (excluding US disposals: NII +3%; fees +7%; total income +7%) America Profit down in Q3 m
Slide 37: South America
Strengthening regional ties to continue growing profitably, supported by the solid increase in loyal (+24%) and digital customers (+18%), reflected in higher volumes South Profit up YoY underpinned by NII and fee income double-digit growth, efficiency improvement America (costs down 3% in real terms
Slide 38: Chile
We continued to make headway with our commercial strategy, ranking #1 in NPS Increased mortgage loans YoY offset the declines in corporates and CIB Chile Profit up YoY due to NII (margin management and inflation), higher fee income and improved efficiency and cost of credit In Q3, positive fee and c
Slide 39: Argentina
Ongoing digital transformation: launch of Superdigital and a new 100% online financing platform. Digital sales (78% of total), Getnet (40 k active merchants) Argentina Overall inflation impact on P&L and volume performance Profit increased YoY boosted by the main revenue lines and lower provisions Q
Slide 40: Uruguay and Andean region
Uruguay High profitability sustained across all countries supported by stronger customer loyalty, leading to greater transactionality and digitalization and Uruguay: profit decreased YoY mainly impacted by lower interest rates Andean region Peru: profit rose YoY boosted by higher revenue and efficie
Slide 41: Appendix
Appendix Primary segments and other countries Secondary segments Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements Glossary 41
Slide 42: Retail Banking
Accelerating our digital transformation through a multi-channel strategy, adapting channels to new business trends and customer needs Retail Banking We ranked top 3 in customer satisfaction, measured by NPS, in 7 of our markets YoY profit growth due to higher revenue, with better efficiency and lowe
Slide 43: Corporate & Investment Banking
We continued to strengthen our position as our client’s strategic advisors Corporate & Increased our participation in green and ESG bonds, being one of the world leaders in SCIB Investment financing and advising on renewable energy Banking Profit increased YoY and QoQ backed by higher revenue and sh
Slide 44: Wealth Management & Insurance
Private Banking: continued good activity levels and business growth. Net new money YTD: EUR 7.9 bn. Total customer assets and liabilities +17% YoY Wealth SAM: volumes continued to grow (+7% YoY), both by market movement and by Management positive net sales (EUR 6.3 bn YTD) & Insurance Insurance: gro
Slide 45: Appendix
Appendix Primary segments and other countries Secondary segments Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements Glossary 45
Slide 46: Well-funded, diversified, prudent and highly liquid balance sheet
Well-funded, diversified, prudent and highly liquid balance sheet (large % contribution from customer deposits), reflected in solid liquidity ratios Liquidity Balance Sheet EUR bn, Sep-21 1,279 1,279 Liquidity Coverage Net Stable Funding Ratio (LCR) Ratio (NSFR) 1 Loans and advances Customer Sep-21
Slide 47: Conservative and decentralized liquidity and funding model
Conservative and decentralized liquidity and funding model EUR 21.8 bn1 issued in public markets in 9M’21 Very manageable maturity profile EUR bn, Sep-21 EUR bn, Sep-21 Covered Bonds 9.4 9.7 2.6 3.3 0.6 Senior 1.9 0.1 2.6 6.4 4.1 0.2 2.6 Senior Non- 0.2 Covered Bonds Preference shares Senior Senior
Slide 48: Interest rate risk hedging
Interest rate risk hedging Mostly positive interest rate sensitivity ALCO portfolios reflect our geographic diversification Net interest income sensitivity* to a +/-100 bp parallel shift Distribution of ALCO portfolios by country EUR mn, Aug-21 %, Sep-21 +100 bps -100 bps Other S.Am., 4% Spain, 4% S
Slide 49: Issuances YTD against funding plan
Issuances YTD against funding plan 2021 Funding plan and issuances EUR bn, Sep-21 Snr Non-Preferred + Snr Hybrids Covered Bonds TOTAL Plan Issued Plan Issued Plan Issued Plan Issued 1 Santander S.A 8-10 9.8 2-3 4.9 - - 10-13 14.6 SCF 3-4 1.9 - - 0-1 - 3-5 1.9 UK 2.5-3.5 3.4 - - - - 2.5-3.5 3.4 SHUSA
Slide 50: Capital levels exceed minimum regulatory requirements
Santander’s capital levels, both phased-in and fully loaded, exceed minimum regulatory requirements SREP capital requirements and MDA* Assumed capital requirements (fully-loaded) Sep-21 Sep-21 16.20% 15.82% +319 bps 2.18% T2 >15% 13.01% 1.76% AT1 13.01% +281 bps 2.27% 2.00% T2 T2 2.38% 1.70% T2 1.50
Slide 51: EBA Stress Test: highest profit after tax in both scenarios
In the EBA Stress Test, Santander had the highest PAT in both scenarios and was the only one of its peers to generate profit in adverse scenario Profit after tax1 baseline (EUR mn) Profit after tax1,2 adverse (EUR mn) Santander 36,744 Santander 966 P1 13,865 P6 -2,587 P2 12,584 P8 -2,777 P3 P4 -4,66
Slide 52: Lowest impact in CET1 phased-in ratio under adverse scenario
Santander was also is the bank with the lowest impact in the CET1 phased-in ratio under the adverse scenario CET1 phased-in1 2020 (%) CET1 phased-in1 adverse 2023 (%) Change (bps) P9 17.3 P2 13.4 Santander -240 P2 17.1 P3 11.0 P1 -319 P10 16.0 P9 10.9 P2 -369 P3 15.4 Santander 9.9 P3 -445 P6 14.7 P1
Slide 53: TLAC ratios for the Resolution Group
TLAC ratios for the Resolution Group headed by Banco Santander, S.A. TLAC Ratio EUR mn 31 December 2020 31 March 2021 30 June 2021 30 September (E) Own Funds 86,836 86,879 86,046 86,860 of which: Common Equity Tier 1 (CET1) capital 69,451 69,594 68,950 68,899 of which: Additonal Tier 1 (AT1) capital
Slide 54: Appendix
Appendix Primary segments and other countries Secondary segments Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements Glossary 54
Slide 55: Yield on loans (%)
Yield on loans (%) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Europe 2.30 2.12 2.06 2.09 2.08 2.04 2.00 Spain 1.99 1.86 1.82 1.85 1.85 1.80 1.68 United Kingdom 2.49 2.35 2.32 2.36 2.33 2.32 2.33 Portugal 1.63 1.57 1.57 1.51 1.46 1.40 1.36 Poland 4.04 3.34 2.95 2.89 2.91 2.91 2.94 North America 8.99 7
Slide 56: Cost of deposits (%)
Cost of deposits (%) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Europe 0.36 0.25 0.14 0.12 0.11 0.08 0.07 Spain 0.06 0.04 0.04 0.04 0.04 0.03 0.03 United Kingdom 0.69 0.52 0.29 0.23 0.21 0.15 0.11 Portugal 0.08 0.06 0.05 0.03 0.02 0.02 0.02 Poland 0.65 0.42 0.14 0.09 0.05 0.03 0.01 North America 1.60
Slide 57: Appendix
Appendix Primary segments and other countries Secondary segments Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements Glossary 57
Slide 58: Stage coverage
Stage coverage Exposure ¹ Coverage Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Stage 1 891 878 862 864 885 904 912 0.6% 0.6% 0.6% 0.5% 0.5% 0.5% 0.5% Stage 2 53 61 60 69 70 70 67 8.2% 7.7% 8.8% 8.5% 8.1% 8.2% 8.6% Stage 3 33 33 31 32 32 33 33 40.
Slide 59: NPL ratio (%)
NPL ratio (%) Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Europe 3.37 3.41 3.29 3.34 3.26 3.30 3.15 Spain 6.88 6.55 5.98 6.23 6.18 6.22 5.99 United Kingdom 0.99 1.10 1.33 1.24 1.35 1.30 1.27 Portugal 4.56 4.43 4.25 3.89 3.84 3.71 3.44 Poland 4.29 4.57 4.58 4.74 4.82 4.58 4.34 North America 2.02
Slide 60: Total coverage ratio (%)
Total coverage ratio (%) Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Europe 47.0 46.5 48.7 50.3 50.0 48.4 51.1 Spain 44.6 43.3 46.0 47.1 47.2 46.0 48.8 United Kingdom 39.7 42.8 41.6 44.7 40.5 37.4 36.6 Portugal 59.0 60.9 64.3 66.5 69.2 73.0 75.5 Poland 68.1 69.0 70.8 70.7 70.3 72.4 74.6 North A
Slide 61: Credit impaired loans and loan-loss allowances by operating area
Credit impaired loans and loan-loss allowances. Breakdown by operating areas. September 2021 Credit impaired loans Loan-loss allowances DCB, 7.7% DCB, 11.6% Other South America, 0.5% Argentina, 0.6% Other South America, 0.7% Chile, 5.6% Argentina, 1.2% Spain, 27.0% Spain, 41.2% Chile, 4.8% Brazil, 1
Slide 62: Cost of credit (%)
Cost of credit (%) Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Europe 0.36 0.41 0.48 0.58 0.51 0.49 0.48 Spain 0.64 0.68 0.80 1.01 0.91 1.00 1.01 United Kingdom 0.14 0.22 0.26 0.27 0.21 0.09 0.01 Portugal 0.23 0.30 0.42 0.51 0.38 0.41 0.35 Poland 0.88 0.96 0.99 1.10 1.02 0.88 0.82 North America
Slide 63: Appendix
Appendix Primary segments and other countries Secondary segments Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements Glossary 63
Slide 64: Santander Responsible Banking goals
Santander Responsible Banking goals Ambition to be net zero by 2050 With the first decarbonization targets: ▪ Aligning our power generation portfolio to Paris by 2030 ▪ Stop providing financial services to power generation clients with a revenue dependency on thermal coal of over 10% by 2030 ▪ Reduc
Slide 65: Appendix
Appendix Primary segments and other countries Secondary segments Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements Glossary 65
Slide 66: Santander Group (EUR mn)
SANTANDER GROUP (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 8,487 7,715 7,773 8,019 7,956 8,240 8,458 23,975 24,654 Net fee income 2,853 2,283 2,423 2,456 2,548 2,621 2,641 7,559 7,810 Gains (losses) on financial transactions and other 474 706 891 520 886 444 8
Slide 67: Santander Group (Constant EUR mn)
SANTANDER GROUP (Constant EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 7,646 7,485 7,825 8,169 8,037 8,247 8,370 22,956 24,654 Net fee income 2,569 2,230 2,423 2,484 2,572 2,624 2,613 7,223 7,810 Gains (losses) on financial transactions and other 456 655 888 519
Slide 68: Europe (EUR mn)
Europe (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 2,378 2,330 2,534 2,670 2,645 2,751 2,744 7,241 8,140 Net fee income 1,128 942 961 968 1,072 1,086 1,079 3,032 3,236 Gains (losses) on financial transactions and other 212 125 388 37 432 106 385 725 923 Total i
Slide 69: Europe (Constant EUR mn)
Europe (Constant EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 2,360 2,347 2,569 2,711 2,656 2,748 2,735 7,275 8,140 Net fee income 1,120 944 965 971 1,073 1,085 1,078 3,028 3,236 Gains (losses) on financial transactions and other 213 122 388 35 432 107 384 723 92
Slide 70: Spain (EUR mn)
Spain (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 925 931 1,034 1,067 1,019 1,015 975 2,890 3,009 Net fee income 643 535 562 573 587 617 616 1,740 1,821 Gains (losses) on financial transactions and other 220 96 204 (8) 178 62 290 520 529 Total income 1,789 1,56
Slide 71: United Kingdom (EUR mn)
United Kingdom (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 820 796 905 983 1,001 1,100 1,168 2,521 3,268 Net fee income 190 94 115 96 120 117 114 398 352 Gains (losses) on financial transactions and other (3) 1 14 (31) (10) (6) 21 12 5 Total income 1,007 891 1,
Slide 72: United Kingdom (GBP mn)
United Kingdom (GBP mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 706 706 818 885 874 948 1,000 2,230 2,822 Net fee income 163 85 104 87 105 101 97 352 304 Gains (losses) on financial transactions and other (2) 1 13 (27) (8) (5) 18 11 4 Total income 867 791 934 945 97
Slide 73: Portugal (EUR mn)
Portugal (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 202 197 193 195 193 192 185 592 569 Net fee income 101 90 94 103 99 110 115 285 325 Gains (losses) on financial transactions and other 47 30 25 19 135 1 12 102 148 Total income 350 317 312 317 427 303 312 979
Slide 74: Poland (EUR mn)
Poland (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 296 251 246 243 240 250 251 794 741 Net fee income 116 104 112 120 127 126 133 332 386 Gains (losses) on financial transactions and other (48) 23 35 24 (10) 41 21 10 52 Total income 365 377 394 388 357 417 405
Slide 75: Poland (PLN mn)
Poland (PLN mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 1,279 1,134 1,095 1,096 1,090 1,131 1,145 3,508 3,367 Net fee income 503 467 498 541 576 573 606 1,468 1,754 Gains (losses) on financial transactions and other (206) 95 156 109 (46) 187 98 45 238 Total income 1
Slide 76: Other Europe (EUR mn)
Other Europe (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 134 155 155 182 192 195 165 445 553 Net fee income 78 120 78 75 138 115 101 276 354 Gains (losses) on financial transactions and other (5) (24) 109 32 139 8 41 80 188 Total income 207 251 343 290 469 318
Slide 77: Other Europe (Constant EUR mn)
Other Europe (Constant EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 133 152 155 182 192 195 165 439 553 Net fee income 75 118 78 75 139 115 100 272 354 Gains (losses) on financial transactions and other (6) (25) 109 32 139 9 40 78 188 Total income 202 244 343 290
Slide 78: North America (EUR mn)
North America (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 2,261 2,079 2,076 2,055 2,005 2,010 2,070 6,415 6,085 Net fee income 464 405 413 402 451 410 386 1,282 1,247 Gains (losses) on financial transactions and other 216 227 194 242 313 299 322 637 934 Total i
Slide 79: North America (Constant EUR mn)
North America (Constant EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 2,074 2,010 2,094 2,064 2,026 2,023 2,036 6,178 6,085 Net fee income 426 399 423 405 457 412 379 1,247 1,247 Gains (losses) on financial transactions and other 199 213 191 239 315 301 317 603 93
Slide 80: United States (EUR mn)
United States (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 1,462 1,429 1,406 1,348 1,337 1,326 1,359 4,297 4,022 Net fee income 250 215 218 206 241 191 174 682 606 Gains (losses) on financial transactions and other 217 157 206 247 324 318 316 580 958 Total incom
Slide 81: United States (USD mn)
United States (USD mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 1,612 1,573 1,644 1,608 1,611 1,599 1,601 4,829 4,810 Net fee income 275 237 255 247 290 231 204 767 725 Gains (losses) on financial transactions and other 239 173 240 291 390 383 372 652 1,145 Total inc
Slide 82: Mexico (EUR mn)
Mexico (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 798 650 669 707 667 684 711 2,118 2,063 Net fee income 211 185 189 188 204 210 203 584 617 Gains (losses) on financial transactions and other (2) 70 (10) (4) (6) (16) 5 58 (18) Total income 1,007 905 848 891 86
Slide 83: Mexico (MXN mn)
Mexico (MXN mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 17,484 16,706 17,310 17,322 16,360 16,503 16,783 51,500 49,647 Net fee income 4,617 4,719 4,868 4,596 4,995 5,077 4,781 14,203 14,853 Gains (losses) on financial transactions and other (51) 1,658 (194) (91) (15
Slide 84: Other North America (EUR mn)
Other North America (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income (0) 0 0 0 0 0 0 0 0 Net fee income 4 5 7 8 7 8 9 16 24 Gains (losses) on financial transactions and other 2 (1) (2) (0) (5) (2) 1 (1) (6) Total income 5 4 6 8 2 5 10 15 18 Operating expenses (6) (6
Slide 85: Other North America (Constant EUR mn)
Other North America (Constant EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income (0) 0 0 0 0 0 0 0 0 Net fee income 4 5 7 8 7 8 9 16 24 Gains (losses) on financial transactions and other 2 (1) (2) (0) (5) (2) 1 (1) (6) Total income 5 4 6 8 2 5 10 15 18 Operating expens
Slide 86: South America (EUR mn)
South America (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 3,065 2,606 2,486 2,566 2,575 2,760 2,920 8,157 8,254 Net fee income 1,077 779 848 885 842 928 956 2,704 2,726 Gains (losses) on financial transactions and other 26 310 149 70 122 85 115 485 322 Total in
Slide 87: South America (Constant EUR mn)
South America (Constant EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 2,430 2,415 2,475 2,655 2,620 2,759 2,875 7,321 8,254 Net fee income 841 730 836 906 859 930 937 2,407 2,726 Gains (losses) on financial transactions and other 24 277 149 74 127 83 112 450 322 T
Slide 88: Brazil (EUR mn)
Brazil (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 2,270 1,813 1,756 1,786 1,780 1,919 2,083 5,840 5,782 Net fee income 869 614 664 677 632 698 696 2,148 2,027 Gains (losses) on financial transactions and other (3) 224 114 82 109 64 103 335 276 Total income 3,1
Slide 89: Brazil (BRL mn)
Brazil (BRL mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 11,100 10,725 11,066 11,446 11,744 12,228 12,847 32,891 36,819 Net fee income 4,250 3,679 4,167 4,324 4,169 4,450 4,285 12,096 12,905 Gains (losses) on financial transactions and other (14) 1,196 703 538 718 40
Slide 90: Chile (EUR mn)
Chile (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 448 425 420 494 497 511 467 1,293 1,476 Net fee income 92 74 74 94 95 96 104 240 294 Gains (losses) on financial transactions and other 12 85 38 6 22 30 12 136 64 Total income 553 584 532 594 614 637 583 1,669 1
Slide 91: Chile (CLP mn)
Chile (CLP mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 397,015 384,057 383,394 447,669 433,780 441,721 426,106 1,164,466 1,301,606 Net fee income 81,770 67,170 67,421 85,452 82,698 82,631 94,239 216,362 259,567 Gains (losses) on financial transactions and other 10,8
Slide 92: Argentina (EUR mn)
Argentina (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 241 261 218 192 204 235 268 721 708 Net fee income 76 56 70 71 74 87 110 202 272 Gains (losses) on financial transactions and other 1 (8) (14) (36) (16) (22) (13) (21) (51) Total income 318 310 274 226 262 3
Slide 93: Argentina (ARS mn)
Argentina (ARS mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 16,991 22,846 24,646 29,613 22,035 27,866 31,122 64,484 81,023 Net fee income 5,327 5,132 7,611 10,109 7,977 10,342 12,802 18,070 31,120 Gains (losses) on financial transactions and other 89 (595) (1,349) (4
Slide 94: Other South America (EUR mn)
Other South America (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 106 107 91 94 93 93 102 304 289 Net fee income 40 34 40 43 41 46 45 114 133 Gains (losses) on financial transactions and other 16 9 11 19 7 13 13 35 33 Total income 162 149 143 157 141 152 161 454
Slide 95: Other South America (Constant EUR mn)
Other South America (Constant EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 88 96 88 92 92 95 102 272 289 Net fee income 35 31 39 42 41 47 45 105 133 Gains (losses) on financial transactions and other 13 8 10 19 6 13 13 31 33 Total income 136 135 136 152 139 154 1
Slide 96: Digital Consumer Bank (EUR mn)
Digital Consumer Bank (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 1,088 1,054 1,048 1,073 1,056 1,075 1,077 3,190 3,207 Net fee income 192 163 211 205 188 206 222 566 616 Gains (losses) on financial transactions and other 11 (4) 50 74 59 21 71 57 151 Total inco
Slide 97: Digital Consumer Bank (Constant EUR mn)
Digital Consumer Bank (Constant EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 1,086 1,067 1,058 1,084 1,057 1,072 1,078 3,211 3,207 Net fee income 192 164 211 205 188 206 222 567 616 Gains (losses) on financial transactions and other 11 (4) 51 75 60 21 70 58 151 T
Slide 98: Corporate Centre (EUR mn)
Corporate Centre (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income (304) (354) (371) (345) (324) (355) (354) (1,029) (1,033) Net fee income (9) (6) (11) (3) (5) (8) (2) (26) (15) Gains (losses) on financial transactions and other 9 47 110 96 (41) (67) (60) 166 (168)
Slide 99: Retail Banking (EUR mn)
Retail Banking (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 8,004 7,272 7,280 7,500 7,472 7,766 7,968 22,557 23,206 Net fee income 2,058 1,536 1,707 1,685 1,709 1,753 1,746 5,301 5,208 Gains (losses) on financial transactions and other 108 263 444 165 355 292 45
Slide 100: Retail Banking (Constant EUR mn)
Retail Banking (Constant EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 7,241 7,073 7,335 7,635 7,548 7,771 7,887 21,649 23,206 Net fee income 1,844 1,501 1,709 1,705 1,727 1,754 1,727 5,054 5,208 Gains (losses) on financial transactions and other 136 240 431 147 3
Slide 101: Corporate & Investment Banking (EUR mn)
Corporate & Investment Banking (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 677 705 771 765 720 739 747 2,153 2,207 Net fee income 402 405 360 375 466 434 435 1,167 1,335 Gains (losses) on financial transactions and other 217 300 242 113 469 110 231 759 810 Tota
Slide 102: Corporate & Investment Banking (Constant EUR mn)
Corporate & Investment Banking (Constant EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 609 677 768 778 724 741 742 2,054 2,207 Net fee income 367 396 358 381 469 435 431 1,121 1,335 Gains (losses) on financial transactions and other 182 272 251 128 472 108 230 706
Slide 103: Wealth Management & Insurance (EUR mn)
Wealth Management & Insurance (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 109 93 92 100 88 91 96 294 275 Net fee income 308 269 279 296 297 316 321 857 933 Gains (losses) on financial transactions and other 133 99 102 149 117 113 199 334 428 Total income 550 46
Slide 104: Wealth Management & Insurance (Constant EUR mn)
Wealth Management & Insurance (Constant EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 100 89 93 102 89 91 95 282 275 Net fee income 291 264 279 298 298 316 319 834 933 Gains (losses) on financial transactions and other 122 99 103 150 117 113 198 324 428 Total inco
Slide 105: PagoNxt (EUR mn)
PagoNxt (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 0 (1) 0 (0) (1) (1) 0 (0) (2) Net fee income 94 78 88 103 81 127 141 259 349 Gains (losses) on financial transactions and other 7 (3) (8) (2) (14) (4) 4 (3) (14) Total income 101 75 81 100 67 123 144 256 334 O
Slide 106: PagoNxt (Constant EUR mn)
PagoNxt (Constant EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 0 (0) 0 (0) (1) (1) 0 (0) (2) Net fee income 76 75 88 103 83 128 138 240 349 Gains (losses) on financial transactions and other 7 (3) (7) (2) (14) (3) 4 (3) (14) Total income 83 72 81 101 68 123 142 2
Slide 107: Appendix
Appendix Primary segments and other countries Secondary segments Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements Glossary 107
Slide 108: Glossary - Acronyms
Glossary - Acronyms ❑ ALCO: Assets and Liabilities Committee ❑ IFRS 9: International Financial Reporting ❑ RoRWA: Return on risk-weighted assets Standard 9, regarding financial instruments ❑ AT1: Additional Tier 1 ❑ RoTE: Return on tangible equity ❑ LLPs: Loan-loss provisions ❑ AuM: Assets under Man
Slide 109: Glossary - Definitions
Glossary - Definitions PROFITABILITY AND EFFICIENCY ✓ RoTE: Return on tangible capital: Group attributable profit / average of: net equity (excluding minority interests) – intangible assets (including goodwill) ✓ RoRWA: Return on risk-weighted assets: consolidated profit / average risk-weighted asse
Slide 110: 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: