Banco Santander, S.a. · BME:SAN
Banco Santander — Investor Day (February 2023)
21 slides from Banco Santander's investor day presentation, Feb 28, 2023
Slide 1: Santander Investor Day 2023
«> Santander INVESTOR | 22f2bvev 2023 DAY | tonpon Ana Botin Executive Chair
Slide 2: Important information: forward-looking statements
Important information Forward - looking statements Santander hereby warns that this document contains “forward - looking statements” as per the meaning of the U . S . Private Securities Litigation Reform Act of 1995 . Such statements can be understood through words and expressions like “expect”, “pr
Slide 3: Non-IFRS measures and non-financial information
Nonetheless, the APMs and non - IFRS measures are supplemental information ; their purpose is not to substitute IFRS measures . Furthermore, companies in our industry and others may calculate or use APMs and non - IFRS measures differently, thus making them less useful for comparison purposes . For
Slide 4: Entering a new phase of shareholder value creation
4 Entering a new phase of shareholder value creation… 2023 - 2025 targets TNAVps+DPS Doub l e - di g it growth Average through - the - cycle Profitability RoTE 15 - 17 % >12% Strength CET1 FL c.85% Disciplined capital allocation RWA with RoRWA > CoE Pa y out Cash dividend + SBB 50% Shareholder remun
Slide 5: Global and network businesses to increase local banks' profitability
5 Global and network businesses to increase local banks’ profitability >30% of revenue currently from global and network businesses SCIB, WM&I, PagoNxt, Auto business As a result, we aim to be the most profitable bank in every market We are Top 3 in profitability in 9 out of our 10 markets Retail &
Slide 6: Our business model brings profitable growth, capital strength and shareholder remuneration
6 1) Underlying. 2) Including acquisition of SCUSA minority interest which closed on 31 January 2022 and the acquisition of Amherst Pierpont. 3) Fiscal year total shareholder remuneration: cash dividend + share buybacks, not including scrip dividends. 2022 final cash dividend subject to shareholder
Slide 7: Leading us to deliver on our medium-term targets
7 … leading us to deliver on our medium - term targets… 1) Subject to approval of the final dividend at the 2023 AGM and completion of the Second 2022 Buyback Programme, for which we have just got the approval of the ECB. ID 2019 Targets 2022 Loyal customers (mn) 26 27 Digital customers (mn) 50 51 %
Slide 8: Meeting our 2022 targets
8 1) Constant €. 2) 2022 vs. 2021 in € +12%. … and meeting our 2022 targets Our 2022 ac hi ev ement Our 2022 t a r ge t s +6% 2 Growth Revenue 1 Mid - single digit growth c . 4 5 % Profitability C /I R o TE 45.8 % 13.4% >13% c . 1 2 % Strength C ET1 FL C oR 12.04 % 99bps < 100 b p s TN A V ps + Cash
Slide 9: Who we are and what guides us
9 Our Aim 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 Simple, Personal and Fair Our Purpose To help people and businesses prosper Looking ahead: who we
Slide 10: Our business model is based on unique competitive advantages
10 Our business model is based on unique competitive advantages In - market and Global Geography Business Balance sheet Digital bank with branches
Slide 11: Customer focus and scale will drive value creation
11 CUSTOMER FOCUS and SCALE powered by higher network contribution will drive value creation focus Capi t al RWA with RoRWA > CoE Digital Bank with Branches 2 3 5 4 Customer activity Transactions volume growth 1) Those customers who meet transactionality threshold in the past 90 days. Customer centr
Slide 12: Our customers value our ESG focus
12 Our customers value our ESG focus – a growth opportunity 1) Since 2019. Additional 5mn people by 2025 with access and finance initiatives. Does not include financial education. Green Finance raised and facilitated €120 b n €94. 5 bn Socially responsible Investments (AuM) €100 b n €53 b n People f
Slide 13: To lead in profitability, we will combine our in-market scale
13 1) Market share data: as at Sep - 22 considering privately - owned banks. US auto lending retail origination. Top 3 in Portugal, Chile, DCB, Poland, Spain, Argentina, Brazil, Mexico and UK (mortgages). 2) Data as of 2022: Considering privately - owned banks. Top 3 in Portugal, Chile, DCB, Poland,
Slide 14: With our Global & Network scale
14 c.15% CAGR 22 - 25 Total t r an sactions processed 2 c.10% CAGR 22 - 25 Private Banking network AuMs … with our Global & Network SCALE… Network contribution to our banks 2025 t a r g ets 2022 €51bn Private Banking network AuMs 21% % of total Private Banking AuMs WM&I Leader in the corridors Latam
Slide 15: Global & network businesses contribution 2025 targets
15 … which will contribute >40% to Group Dz s total revenue and >50% to Group Dz s total fees by 2025 Global & network businesses contribution 2025 targets >40% to Group’s total revenue >50% to Group’s total fees Global reach and local strength Leading product factories (Energy transition, Infrastruct
Slide 16: Converging Consumer & Commercial customers to a common operating model
16 We will converge our Consumer & Commercial customers to a common operating and business model – One Transformation… Santander b a n k s Less time spent on operations in branches… % Operational Activity in Branches Santander P ortu g a l S a n t a nd er b a n k s … with a high level of automation
Slide 17: Journey to a digital bank with branches
17 … which will drive the Group’s journey to a digital bank with branches powered by Santander network 4 5 .8 % Operating performance improvement - Cost to income (%) 200 – 250 bps 100 – 150 bps 2022 c .4 2 % One Transformation Global Tech capabilities & others 2025 target Consumer and commercial cu
Slide 18: Our diversification provides a better risk-return profile than peers
18 1) Pre - provision profit. Our DIVERSIFICATION provides us with a better risk - return profile than our peers 1 Simple, transparent and easy to analyze balance sheet 2 Stable deposit structure , c.80% of high - quality retail customer deposits 3 Low - risk business profile , 96% low - risk loans
Slide 19: Our KPIs by 2025
19 Our KPIs by 2025 1) Target payout will be c.50% of group reported profit (excluding non - cash, non - capital ratios impact items), distributed in approximately 50% in cash dividend and 50% in share buybacks. Execution of the shareholder remuneration policy is subject to future corporate and regu
Slide 20: Entering a new phase of shareholder value creation
20 Entering a new phase of shareholder value creation 2023 - 2025 targets Profitability RoTE 15 - 17 % >12% Strength CET1 FL c.85% Disciplined capital allocation RWA with RoRWA > CoE Pa y out Cash dividend + SBB 50% Shareholder remuneration Note: Target payout will be c.50% of group reported profit
Slide 21: Thank You
2 1 Our purpose is to help people and business 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 by the undersigne