Banco Santander, S.a. · BME:SAN
Banco Santander — H1 2019 Earnings Presentation
108 slides from Banco Santander's earnings presentation, Jul 23, 2019
Slide 1: H1'19 Earnings Presentation
23 July 2019 H1'19 Earnings Presentation Here to help you prosper so
Slide 2: Important Information
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 document contains certain financial measures that constitute a
Slide 3: Important Information
Important Information Forward-looking statements speak only as of the date of this document and are based on the knowledge, information available and views taken on such date; such knowledge, information and views may change at any time. Santander does not undertake any obligation to update or revis
Slide 4: Index
Index 1. Highlights 2. Group performance H1’19 3. Business areas performance H1’19 4. Concluding remarks 5. Appendix 6. Glossary 4
Slide 5: Group performance H1'19
Group performance H1’19 01
Slide 6: Highlights
Highlights QoQ strong growth in volumes (+2% loans ; +3% customer funds), underlying profit (+8%) and continued generation of capital organically (+11 bps) Our loyal and digital customer base continues double digit growth, increasing digital activity Activity Volumes increased1: loans (+2% QoQ; +4
Slide 7: Highlights: Growth, Profitability, Strength
Highlights Growth Profitability Strength Loyal: +10% Customer revenue: +5% CET1: 11.30% (+50 bps) Customers Results Solvency Digital: +22% Underlying att. profit: +2% TNAVps: 4.30 (+5%) Loans: +4% RoTE: 11.7% NPL: 3.51% (-41 bps) Profitability Credit Volumes Customer funds: +6% ratios1 RoRWA: 1.62%
Slide 8: Business activity
Business activity 8
Slide 9: Larger customer base, increased loyalty ratio
Our successful commercial and digital transformation strategy is reflected in a larger customer base, increased loyalty ratio… Total customers Loyal customers Loyal / Active 142 mn (+4%) 20.6 mn (+10%) customers Individuals (mn) Companies (k) +11% +7% 29% 30% 142 18.9 1,626 1,743 139 141 17.1 136 13
Slide 10: Increased number of digital customers and activity
…as well as in an increased number of digital customers and activity Digital customers1 # Accesses2 # Active transactions3 (online and mobile) (monetary and voluntary) 34.8 mn (+22%) 3,725 mn in H1’19 (+28%) 1,062 mn in H1’19 (+25%) 1,895 545 33.9 34.8 1,768 1,830 517 32.0 1,624 498 30.1 1,521 443 4
Slide 11: Continued widespread growth in loans and customer funds
Continued widespread growth: loans (+2% QoQ; +4% YoY) and customer funds (+3% QoQ; +6% YoY), boosted by developing markets Loans and advances to customers in core markets Customer funds in core markets EUR bn and YoY change in constant EUR EUR bn and YoY change in constant EUR 232 0% 317 +5% 201 -4%
Slide 12: Results, profitability and solvency
Results, profitability and solvency 12
Slide 13: H1'19 underlying P&L YoY performance
H1’19 underlying P&L YoY performance H1’19 H1’18 % vs. H1’18 EUR million Constant Euros euros Higher customer revenue due to Net interest income 17,636 16,931 4 6 increased business volumes and spread management Net fee income 5,863 5,889 0 2 Lower market revenue and Gains on fin. trans. and other 9
Slide 14: Net capital gains and provisions
Net capital gains and provisions EUR million H1’19 Q1 Q2 -964 80 PPI2 (UK) Pending accounting of -814 626 Restructuring costs capital gain from custody Net (600 Spain; 26 UK) transaction1: EUR 700 million 150 78 Restructuring costs (66 UK; 12 Poland) Capital gains Prisma (Argentina) 180 Property sal
Slide 15: Q2 underlying profit strongest since 2011
Q2 underlying profit strongest since 2011 Group underlying attributable profit Constant EUR million 2,096 2,107 1,983 1,977 2,021 1,938 9% growth QoQ (in constant euros) despite the annual SRF contribution in Q2’19 Excluding this effect, 17% QoQ (in constant euros) Q1'18 Q2 Q3 Q4 Q1'19 Q2 Note: Cont
Slide 16: Customer revenue growth QoQ and YoY
Customer revenue growth QoQ (+3%) and YoY (+6%) driven by stronger customer activity Net interest income YoY growth due to higher volumes and spread management, with improvements in 7 of our 10 core markets 8,650 8,986 8,278 QoQ increase backed by South America and North America, particularly Brazil
Slide 17: Higher NII due to increased volumes and wider spreads
Higher NII due to increased business volumes and wider spreads in mature markets Organic growth Lower cost of deposits Mature +5 bps +2% +4% markets H1’19 vs. H1’18 +2% Loans Customer deposits NIM Net interest income Organic growth Lower rates +6% Developing markets +10% +12% -12 bps +10% Loans Cust
Slide 18: Higher net fee income driven by Retail Banking and WM&I
Higher net fee income driven by Retail Banking and WM&I contribution. SCIB still affected by markets Activity growth1 Net fee income by market1 Developing Mature Mutual fund markets markets balances +5% +10% -4% Card turnover +11% Net fee income by segment1 SCIB -9% Insurance premiums +10% Wealth Ma
Slide 19: Costs reflect first integration synergies
Costs (-1.8% YoY in real terms) reflect the first integration synergies, maintaining a best-in-class cost-to-income ratio and high quality customer service Cost evolution H1’19 vs. H1’18, % Nominal In real terms1 Targeted cost management by geographies: -7.3 -8.8 Europe: -3.2% cost reduction in real
Slide 20: Positive trend in credit quality continued
The positive trend in credit quality continued, underpinned by the good evolution of the NPL ratio, coverage and cost of credit ratios % 0.99 0.97 0.98 Cost of credit ratio flat YoY, maintaining Cost of credit low levels in H1’19 3.92 3.62 3.51 NPL ratio NPL ratio fell YoY in most markets 69 68 68 H
Slide 21: Continued to generate capital organically
Continued to generate capital organically (+11 bps QoQ; +29 bps YTD) CET1 ratio impacted by regulatory effects and restructuring costs. CET1 ratio % YoY Jun-19 change 11.30 +0.29 +0.15 11.30 10.94 FL Total capital ratio 14.80% +56 bps 10.80 -0.08 -0.36 FL Tier 1 capital ratio 12.73% +44 bps Leverage
Slide 22: Creating shareholder value while maintaining high profitability
Creating shareholder value whilst maintaining high profitability TNAV per share Profitability ratios EUR Underlying RoTE1 Underlying RoRWA1 4.30 12.1% 11.7% 1.59% 1.62% 4.19 4.10 Jun-18 Dec-18 Jun-19 2018 H1'19 2018 H1'19 (1) Statutory RoTE 2018 11.7% and H1’19 10.5%. Statutory RoRWA 2018 1.55% and
Slide 23: New reporting aligned with our organisational structure
New reporting aligned with our organisational structure 23
Slide 24: Adapting our reporting to the new organisational structure
Adapting our reporting to the new organisational structure and according to IFRS 8 requirements 1 2 Main changes in the Creation of Santander Global organisational structure Platform (SGP) 3 regions: Europe, North America To accelerate progress towards being and South America the best open finan
Slide 25: A new, simplified management structure
1 A new, simplified management structure Total customers Loans Customer funds Underlying profit RoTE (EUR million) (EUR billion) (EUR billion) (EUR billion) (%) Europe 67 638 658 2,354 10% North America 22 123 112 889 10%1 South America 52 131 173 1,961 21% Note: Loans excluding reverse repos. Custo
Slide 26: SGP - Openbank and Open Digital Services (ODS)
A SGP - Openbank and Open Digital Services (ODS) Openbank Open Digital Services (ODS) – BaaS model One of the largest full service digital banks in Europe, A technology company developing a “Banking as a with best in class UX and a profitable business model Service” state-of-the-art platform to be u
Slide 27: SGP - Global Payments Services
B SGP - Global Payments Services - Global value propositions Payments platform to better serve existing and new customers with best-in-class value propositions developed globally Superdigital - “Banking without a bank” Global Merchant Services - Acquiring solutions >500k active users >1 million acti
Slide 28: SGP - Digital Assets
C SGP - Digital Assets - Common solutions (“built once, used by many”) Our common digital assets and Centres of Digital Expertise help our banks in their digital transformation Centres of Digital Expertise - Global capabilities Digital Assets - Technology projects & solutions1 Main centres Globile -
Slide 29: Business areas performance H1'19
Business areas performance H1’19 02
Slide 30: Increased weight of the Americas in Group profit
Increased weight of the Americas (55%) in Group profit H1’19 Underlying attributable profit1 H1’19 Underlying attributable profit in core markets EUR mn and % change vs. H1’18 in constant euros 1,482 +18% Spain, Brazil, 13% 694 +5% 29% SCF 658 -1% 582 -13% South Europe SCF, America 13% 465 +30% 45%
Slide 31: Brazil
Brazil: YoY double-digit profit growth, higher RoTE (22%) and better customer service and satisfaction. QoQ strong customer revenue growth P&L* Q2'19 % Q1'19 H1'19 % H1'18 NII 2,520 5.5 4,979 6.6 22% +33% Net fee income 924 2.3 1,855 8.7 Loyal/active Digital customers customers Total income 3,453 4.
Slide 32: Spain
Spain: revenue affected by lower fee income (CIB) and IFRS 16 impact. Cost improvement reflects first integration synergies. QoQ evolution impacted by the SRF contribution P&L* Q2'19 % Q1'19 H1'19 % H1'18 NII 1,009 0.0 2,018 1.1 +4% 31% +21% Net fee income 1 624 0.1 1,247 -6.9 Loyal/active Digital c
Slide 33: SCF
SCF: leadership in Europe with best-in-class profitability (RoRWA: 2.3%) and efficiency. Historically low NPL ratio and cost of credit (Q2 portfolio sales) P&L* Q2'19 % Q1'19 H1'19 % H1'18 NII 971 3.0 1,911 4.1 19.2 mn 44.6% Net fee income 201 -6.1 415 3.0 Total Efficiency customers ratio Total inco
Slide 34: UK
UK: results reflect continued competitive pressure on revenue. Cost improvement and resilient credit quality performance P&L* Q2'19 % Q1'19 H1'19 % H1'18 NII 944 -2.9 1,919 -7.2 31% +8% Net fee income 207 -4.0 423 -8.4 Loyal/active Digital customers customers Total income 1,183 -1.7 2,388 -8.4 Opera
Slide 35: North America
North America Activity Underlying profit RoTE 90 Another positive quarter, with strong 70 business volumes and profit growth +3% EUR +4% QoQ QoQ 465 mn 11%1 Efficiency improved (3 pp), driven by +30% +10% +10% increased revenue and stable costs YoY YoY Loans Funds Continued to increase customer 42 b
Slide 36: Portugal, Poland, Chile and Argentina
Portugal, Poland, Chile and Argentina Underlying profit RoTE EUR Profit growth thanks to ALCO portfolio sales, lower costs due to integration synergies and LLP releases (strong improvement in credit quality) 260 mn 13% +14% EUR Net operating income after provisions: +12%, however underlying profit f
Slide 37: Corporate Centre
Corporate Centre P&L* H1'19 H1'18 NII -600 -477 Higher loss in NII due to higher stock of issuances and IFRS 16 impact Gains/Losses on FT -171 5 FX hedging cost reflected in results from financial transactions Operating expenses -193 -212 Operating expenses reflect the streamlining and simplificatio
Slide 38: Concluding remarks
Concluding remarks 03
Slide 39: Santander Group continued to deliver good results
Santander Group continued to deliver good results in a challenging market Larger customer base, increased loyalty ratio, the number of digital customers and their activity Volumes growth higher than in 2018, especially in customer funds Revenue up (+3% with NII +6%), costs reflecting the first
Slide 40: New geographical areas: key metrics and mid-term targets
New geographical areas. Key metrics H1’19 and mid-term targets Key metrics Europe North America Medium-term Medium-term Medium-term Commercial H1’19 targets H1’19 targets H1’19 targets Loyal / Active 35% 40% 29% 31% 26% 31% customers Digital customers 13 mn c.16 mn 4 mn c.7 mn 16 mn c.20 mn # of cou
Slide 41: RoTE H1'19 and medium-term target by countries
RoTE H1’19 and medium-term target by countries RoTE (%) H1’19 Medium-term targets 22% >20% 9% 14-16% 15% 14-15% 8% 9-11% 20% 19-21% 11%1 11-13%1 18% 19-20% 13% 13-15% 17%2 14-16%2 Note: underlying RoTE (1) Adjusted for excess of capital. Otherwise, RoTE in H1’19 at 6% 41 (2) Adjusted for excess of c
Slide 42: We confirm our medium-term goals for the Group
We confirm our medium-term goals for the Group Medium-term goals RoTE1 FL CET1 13-15% 11-12% Dividend Efficiency pay-out ratio 42-45% 40-50% Growth Profitability Strength (1) Underlying 42
Slide 43: Appendix
Appendix 04
Slide 44: Primary segments
Appendix Primary segments Secondary segments Other countries Liquidity NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements
Slide 45: Europe
Europe: in a low interest rate and low growth environment, results reflect revenue pressure, cost control and good credit quality. Working to simplify and integrate our structure P&L* Q2'19 % Q1'19 H1'19 % H1'18 NII 3,580 0.5 7,141 1.8 35% +13% Net fee income 1,304 -1.8 2,630 -4.6 Loyal/active Digit
Slide 46: North America
North America: double digit profit improvement in the US and Mexico, while increasing coordination between both countries P&L* Q2'19 % Q1'19 H1'19 % H1'18 NII 2,230 1.4 4,403 8.3 29% +43% Net fee income 463 4.3 901 4.2 Loyal/active Digital customers customers Total income 2,918 4.8 5,672 7.2 Operati
Slide 47: South America
South America: strong growth in profit and volumes. Focus on accelerating profitable growth, strengthening a more connected regional network P&L* Q2'19 % Q1'19 H1'19 % H1'18 NII 3,425 9.2 6,647 9.4 26% +26% Net fee income 1,178 2.9 2,355 10.9 Loyal/active Digital customers customers Total income 4,6
Slide 48: Santander Global Platform: definitions
SGP Santander Global Platform: definitions Openbank ODS One of the largest full service digital bank in Europe, with best in class UX A technology company developing a new banking platform to be used by Openbank and a profitable business model in its international expansion. To attract, engage and r
Slide 49: Primary segments
Appendix Primary segments Secondary segments Other countries Liquidity NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements 49
Slide 50: Retail Banking
Retail Banking: continued focus on customer loyalty and digital transformation. We continued to launch new products and services that cover the needs of our customers P&L* Q2'19 % Q1'19 H1'19 % H1'18 ACTIVITY EUR bn and % change in constant euros NII 8,390 3.5 16,553 4.8 Net fee income 2,269 -0.9 4,
Slide 51: Corporate & Investment Banking
Corporate & Investment Banking: profit growth YoY with good evolution of value-added businesses, offset by reduced activity in markets P&L* Q2'19 % Q1'19 H1'19 % H1'18 Total income1 NII 701 8.0 1,354 22.5 EUR mn +5% 2,606 2,475 Net fee income 377 7.6 730 -9.3 +29% Capital & Other 219 283 Total incom
Slide 52: Wealth Management & Insurance
Wealth Management & Insurance: strategic initiatives focused on the development of Private Banking’s global and digital platform and strengthening SAM and Insurance’s value proposition ACTIVITY P&L* Q2'19 % Q1'19 H1'19 % H1'18 EUR bn and % change YoY in constant euros NII 144 3.4 283 10.7 Total AUM
Slide 53: Primary segments
Appendix Primary segments Secondary segments Other countries Liquidity NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements 53
Slide 54: USA
USA: another positive quarter for Santander US, with strong business volumes and profit growth. YoY NII and LLP comparison impacted by reclassification of TDRs P&L* Q2'19 % Q1'19 H1'19 % H1'18 NII 1,453 2.2 2,860 6.8 19% +9% Net fee income 244 3.3 479 3.1 Loyal/active Digital customers customers Tot
Slide 55: Mexico
Mexico: continued to increase customer base, volumes and profitability. Double-digit profit growth due to higher customer revenue and lower cost of credit P&L* Q2'19 % Q1'19 H1'19 % H1'18 NII 777 -0.1 1,543 11.2 31% +57% Net fee income 218 5.4 423 5.6 Loyal/active Digital customers customers Total i
Slide 56: Chile
Chile: QoQ strong NII growth favoured by higher inflation (UF) and faster volume growth. YoY profit increased driven by good market results and lower provisions. NII affected by lower inflation P&L* Q2'19 % Q1'19 H1'19 % H1'18 NII 500 15.0 940 -1.7 46% +12% Net fee income 97 -4.5 200 -9.4 Loyal/acti
Slide 57: Portugal
Portugal: Profit growth thanks to ALCO portfolio sales, lower costs due to integration synergies and LLP releases (strong improvement in credit quality) P&L* Q2'19 % Q1'19 H1'19 % H1'18 NII 213 -1.2 429 -1.4 45% +13% Net fee income 99 0.8 197 4.1 Loyal/active Digital customers customers Total income
Slide 58: Poland
Poland: strong top line growth not reflected in underlying profit due to higher BFG and Banking Tax contribution. QoQ growth from dividend income and the non-repeat of BFG and Banking Tax P&L* Q2'19 % Q1'19 H1'19 % H1'18 NII 284 0.6 565 18.0 52% +13% Net fee income 117 2.3 230 3.2 Loyal/active Digit
Slide 59: Argentina
Argentina: profit virtually unchanged in constant euros, as the high inflation adjustment of EUR -74 million was offset by a rise in revenue higher than inflation P&L* Q2'19 % Q1'19 H1'19 % H1'18 NII 298 43.8 511 113.4 47% +3% Net fee income 125 11.8 241 71.3 Loyal/active Digital Total income 389 21
Slide 60: Uruguay and Andean Region
Uruguay and Andean Region. Underlying attributable profit URUGUAY PERU COLOMBIA +13% +8% +173% 71 63 19 17 5 2 H1'18 H1'19 H1'18 H1'19 H1'18 H1'19 29% 18% 7% RoTE RoTE RoTE Note: Constant EUR mn and underlying RoTE 60
Slide 61: Primary segments
Appendix Primary segments Secondary segments Other countries Liquidity NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements 61
Slide 62: Well-funded, prudent and highly liquid balance sheet
Well-funded, prudent and highly liquid balance sheet with high contribution from customer deposits and diversified wholesale instruments Liquidity Balance Sheet EUR bn, Jun-19 1,215 1,215 Liquidity Coverage Net Stable Funding Ratio (LCR) Ratio (NSFR) May-19 Mar-19 Loans and Customer advances to 815
Slide 63: Primary segments
Appendix Primary segments Secondary segments Other countries Liquidity NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements 63
Slide 64: Coverage ratio by stage
Appendix Coverage ratio by stage Exposure1 Coverage EUR bn Jun-19 Jun-19 Jun-18 Stage 1 870 0.5% 0.6% Stage 2 53 8.5% 8.5% Stage 3 34 42.8% 43.2% (1) Exposure subject to impairment expressed in EUR bn. Additionally, there are EUR 24 bn in customer loans not subject to impairment recorded at mark to
Slide 65: NPL ratio
Appendix NPL ratio % Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 EUROPE 4.08 3.97 3.90 3.67 3.61 3.48 Spain 7.74 7.62 7.55 7.32 7.29 7.02 Santander Consumer Finance 2.48 2.44 2.45 2.29 2.33 2.24 United Kingdom 1.17 1.13 1.12 1.08 1.17 1.13 Portugal 8.29 7.55 7.43 5.94 5.77 5.00 Poland 4.77 4.58 4.23 4
Slide 66: Coverage ratio
Appendix Coverage ratio % Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 EUROPE 54.4 52.9 52.1 50.1 49.5 49.9 Spain 49.8 47.5 46.4 43.7 43.3 42.9 Santander Consumer Finance 107.2 107.7 106.4 106.4 105.3 105.9 United Kingdom 34.4 33.8 33.0 32.9 30.9 31.9 Portugal 53.9 52.7 53.4 50.5 50.7 52.9 Poland 72.0
Slide 67: Non-performing loans and loan-loss allowances. June 2019
Appendix Non-performing loans and loan-loss allowances. June 2019 Non-performing loans Loan-loss allowances 100%: EUR 34,185 million 100%: EUR 23,165 million Brazil, 13.4% Brazil, 20.8% Chile, 5.7% Spain, 28.9% Argentina, 0.7% Uruguay and And. Reg., 0.4% Spain, 45.7% Mexico, 2.3% Chile, 5.0% USA, 6.
Slide 68: Cost of credit
Appendix Cost of credit % Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 EUROPE 0.24 0.25 0.26 0.24 0.24 0.24 Spain 0.35 0.36 0.41 0.38 0.40 0.41 Santander Consumer Finance 0.36 0.37 0.40 0.38 0.38 0.36 United Kingdom 0.11 0.10 0.09 0.07 0.07 0.06 Portugal 0.08 0.10 0.03 0.09 0.03 0.03 Poland 0.69 0.71 0
Slide 69: Primary segments
Appendix Primary segments Secondary segments Other countries Liquidity NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements 69
Slide 70: Santander Responsible Banking
Our activity helps us to address a number of the Santander Responsible Banking United Nations’ Sustainable Development Goals, and support the Paris Agreement’s aim Adapting to the new business environment to combat climate change and adapt to its effects. We are: • We are facing a new business envir
Slide 71: Our commitments
From…To…. Our commitments Cumulative target 2018 2019 2020 2021 2022 2023 2024 2025 Top 10 country to work for1 (core geographies) 4 6 Women on the Board 33% 40%-60% Women in senior leadership positions2 (%) 20% 30% Equal pay gap3 3% ~0% Financially empowered people4 10MM Green finance raised and fa
Slide 72: Primary segments
Appendix Primary segments Secondary segments Other countries Liquidity NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements 72
Slide 73: Grupo Santander
Appendix GRUPO SANTANDER EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 8,454 8,477 8,349 9,061 8,682 8,954 16,931 17,636 Net fee income 2,955 2,934 2,640 2,956 2,931 2,932 5,889 5,863 Gains (losses) on financial transactions and other 742 600 731 525 472 465 1,342 9
Slide 74: Grupo Santander (constant EUR)
Appendix GRUPO SANTANDER Constant EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 8,278 8,438 8,722 8,987 8,650 8,986 16,716 17,636 Net fee income 2,843 2,886 2,802 2,883 2,917 2,946 5,729 5,863 Gains (losses) on financial transactions and other 735 582 782 534 472 46
Slide 75: Europe
Appendix EUROPE EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 3,502 3,508 3,562 3,631 3,561 3,580 7,010 7,141 Net fee income 1,372 1,382 1,354 1,327 1,327 1,304 2,754 2,630 Gains (losses) on financial transactions and other 477 282 503 355 337 304 759 642 Total inco
Slide 76: Europe (constant EUR)
Appendix EUROPE Constant EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 3,506 3,507 3,583 3,646 3,561 3,580 7,013 7,141 Net fee income 1,373 1,383 1,359 1,331 1,327 1,304 2,756 2,630 Gains (losses) on financial transactions and other 480 282 505 356 337 304 762 642 T
Slide 77: Spain
Appendix Spain EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 969 1,026 1,044 1,054 1,009 1,009 1,995 2,018 Net fee income 669 671 651 633 623 624 1,340 1,247 Gains (losses) on financial transactions and other 247 163 370 117 224 216 411 440 Total income 1,885 1,860
Slide 78: Santander Consumer Finance
Appendix Santander Consumer Finance EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 915 928 937 943 941 971 1,843 1,911 Net fee income 215 188 206 189 214 201 403 415 Gains (losses) on financial transactions and other 10 10 13 56 13 (18) 21 (5) Total income 1,140 1,12
Slide 79: Santander Consumer Finance (constant EUR)
Appendix Santander Consumer Finance Constant EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 912 925 935 942 941 970 1,836 1,911 Net fee income 214 188 206 189 214 201 402 415 Gains (losses) on financial transactions and other 11 10 14 56 13 (18) 21 (5) Total income 1
Slide 80: United Kingdom
Appendix United Kingdom EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 1,023 1,029 1,016 1,011 975 944 2,052 1,919 Net fee income 219 240 230 224 216 207 459 423 Gains (losses) on financial transactions and other 29 50 55 8 15 32 79 46 Total income 1,270 1,319 1,300
Slide 81: United Kingdom (GBP)
Appendix United Kingdom GBP million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 904 901 907 896 850 825 1,805 1,676 Net fee income 193 210 205 198 189 181 404 370 Gains (losses) on financial transactions and other 25 44 49 7 13 28 69 40 Total income 1,122 1,156 1,160 1,101 1,
Slide 82: Portugal
Appendix Portugal EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 222 213 211 211 216 213 435 429 Net fee income 98 91 92 96 98 99 189 197 Gains (losses) on financial transactions and other 22 42 20 26 44 42 63 86 Total income 341 346 323 334 357 354 688 712 Operating
Slide 83: Poland
Appendix Poland EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 247 240 243 265 281 284 487 565 Net fee income 112 114 111 115 113 117 227 230 Gains (losses) on financial transactions and other (26) 44 13 10 (18) 39 17 22 Total income 333 398 367 390 377 440 731 817 O
Slide 84: Poland (PLN)
Appendix Poland PLN million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 1,031 1,025 1,047 1,139 1,209 1,216 2,055 2,425 Net fee income 469 487 478 493 488 499 957 987 Gains (losses) on financial transactions and other (110) 183 54 41 (76) 168 73 92 Total income 1,390 1,695 1,
Slide 85: Other Europe
Appendix Other Europe EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 127 71 111 147 139 159 198 299 Net fee income 60 77 64 71 62 56 137 118 Gains (losses) on financial transactions and other 196 (27) 32 139 60 (7) 169 53 Total income 382 122 207 357 261 209 504 469
Slide 86: Other Europe (constant EUR)
Appendix Other Europe Constant EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 129 72 111 147 139 159 200 299 Net fee income 61 78 65 71 62 56 140 118 Gains (losses) on financial transactions and other 197 (26) 33 139 60 (7) 171 53 Total income 387 124 208 358 261 208
Slide 87: North America
Appendix NORTH AMERICA EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 1,869 1,933 2,065 2,286 2,173 2,230 3,802 4,403 Net fee income 402 408 407 399 439 463 809 901 Gains (losses) on financial transactions and other 138 197 194 178 142 226 335 368 Total income 2,409
Slide 88: North America (constant EUR)
Appendix NORTH AMERICA Constant EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 2,018 2,047 2,120 2,341 2,186 2,217 4,066 4,403 Net fee income 432 432 416 409 441 460 865 901 Gains (losses) on financial transactions and other 151 208 200 180 143 225 359 368 Total inco
Slide 89: United States
Appendix United States EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 1,221 1,281 1,337 1,553 1,407 1,453 2,501 2,860 Net fee income 214 219 208 217 234 244 434 479 Gains (losses) on financial transactions and other 143 170 190 196 174 222 313 396 Total income 1,578
Slide 90: United States (USD)
Appendix United States USD million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 1,500 1,526 1,555 1,780 1,598 1,633 3,026 3,231 Net fee income 263 261 241 248 266 275 525 541 Gains (losses) on financial transactions and other 176 203 222 225 197 250 379 447 Total income 1,940
Slide 91: Mexico
Appendix Mexico EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 649 653 728 733 766 777 1,301 1,543 Net fee income 187 188 199 181 204 218 376 423 Gains (losses) on financial transactions and other (5) 27 3 (18) (32) 4 22 (28) Total income 831 868 931 897 939 999 1,69
Slide 92: Mexico (MXN)
Appendix Mexico MXN million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 14,945 15,080 16,086 16,573 16,703 16,694 30,026 33,397 Net fee income 4,312 4,355 4,390 4,098 4,455 4,695 8,666 9,149 Gains (losses) on financial transactions and other (114) 623 71 (407) (687) 83 509 (6
Slide 93: South America
Appendix SOUTH AMERICA EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 3,298 3,259 2,952 3,382 3,222 3,425 6,557 6,647 Net fee income 1,189 1,151 903 1,254 1,178 1,178 2,340 2,355 Gains (losses) on financial transactions and other 123 131 28 4 88 45 254 132 Total inco
Slide 94: South America (constant EUR)
Appendix SOUTH AMERICA Constant EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 2,969 3,107 3,250 3,239 3,177 3,470 6,076 6,647 Net fee income 1,045 1,078 1,050 1,168 1,161 1,195 2,123 2,355 Gains (losses) on financial transactions and other 101 102 71 10 87 45 203 13
Slide 95: Brazil
Appendix Brazil EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 2,482 2,424 2,377 2,475 2,459 2,520 4,906 4,979 Net fee income 920 872 776 929 931 924 1,792 1,855 Gains (losses) on financial transactions and other 42 27 27 (8) 21 9 70 30 Total income 3,445 3,323 3,180
Slide 96: Brazil (BRL)
Appendix Brazil BRL million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 9,898 10,383 10,874 10,747 10,516 11,095 20,282 21,611 Net fee income 3,670 3,738 3,577 4,032 3,980 4,070 7,408 8,050 Gains (losses) on financial transactions and other 169 119 128 (32) 91 41 288 132 Tota
Slide 97: Chile
Appendix Chile EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 490 495 481 477 440 500 985 940 Net fee income 111 117 101 95 103 97 227 200 Gains (losses) on financial transactions and other 40 30 49 49 56 59 70 115 Total income 640 642 632 622 600 656 1,282 1,255 Ope
Slide 98: Chile (CLP)
Appendix Chile CLP million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 362,502 366,847 370,827 370,410 333,439 383,545 729,349 716,985 Net fee income 81,758 86,556 78,318 73,959 78,010 74,473 168,315 152,483 Gains (losses) on financial transactions and other 29,304 22,193 37,
Slide 99: Argentina
Appendix Argentina EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 214 234 (6) 327 213 298 447 511 Net fee income 129 133 (6) 192 116 125 263 241 Gains (losses) on financial transactions and other 34 63 (58) (46) 2 (33) 97 (31) Total income 377 430 (70) 472 331 389 80
Slide 100: Argentina (ARS)
Appendix Argentina ARS million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 5,172 6,385 7,820 8,507 10,117 14,548 11,557 24,665 Net fee income 3,121 3,660 4,472 5,022 5,486 6,131 6,781 11,616 Gains (losses) on financial transactions and other 824 1,683 (799) (1,972) 102 (1,596
Slide 101: Other South America (Uruguay and Andean Region)
Appendix Other South America (Uruguay and Andean Region) EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 112 106 100 103 109 108 218 217 Net fee income 29 29 31 38 29 32 58 60 Gains (losses) on financial transactions and other 7 11 9 8 8 9 18 17 Total income 148 146 1
Slide 102: Other South America (constant EUR)
Appendix Other South America (Uruguay and Andean Region) Constant EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 106 101 97 101 107 110 208 217 Net fee income 27 28 31 38 28 32 55 60 Gains (losses) on financial transactions and other 7 11 9 8 8 9 17 17 Total income 1
Slide 103: Santander Global Platform
Appendix SANTANDER GLOBAL PLATFORM EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income 18 20 20 20 22 23 38 46 Net fee income 1 1 1 4 2 1 2 2 Gains (losses) on financial transactions and other (4) (3) (3) (2) (5) (4) (7) (9) Total income 16 18 19 21 19 20 34 39 Operating
Slide 104: Corporate Centre
Appendix CORPORATE CENTRE EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 H1'18 H1'19 Net interest income (234) (243) (251) (259) (296) (304) (477) (600) Net fee income (9) (9) (24) (28) (14) (13) (17) (27) Gains (losses) on financial transactions and other 7 (7) 9 (10) (90) (106) (0) (196) Total in
Slide 105: Glossary
Glossary 05
Slide 106: Glossary - Acronyms
Glossary - Acronyms AFS: Available for sale P&L: Profit and loss AuM: Assets under Management PPP: Pre-provision profit bn: Billion QoQ: Quarter-on-Quarter CET1: Common equity tier 1 RE: Real Estate C&I: Commercial and Industrial Repos: Repurchase agreements CIB: Corporate & Investment Bank ROF: Gai
Slide 107: 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 assets E
Slide 108: Thank you.
Thank you. Our purpose is to help people and business prosper. Our culture is based on believing that everything we do should be