Banco Santander, S.a. · BME:SAN
Banco Santander — Investor Day (February 2026)
44 slides from Banco Santander's investor day presentation, Feb 25, 2026
Slide 1: Jose García Cantera, Group CFO
Jose García Cantera | Group CFO 25 February | London 1
Slide 2: Important information
Important information Non-IFRS and alternative performance measures Banco Santander, S.A. (“Santander”) cautions that this webcast may contain financial information prepared according to International Financial Reporting Standards (IFRS) and taken from our consolidated financial statements, as well
Slide 3: Important information
Important information Additionally, Webster Financial Corporation’s (“Webster”) and Santander’s actual results, financial condition and achievements may differ materially from those indicated in these forward-looking statements. Important factors that could cause Webster’s and Santander’s actual res
Slide 4: Important information
Important information ADDITIONAL INFORMATION ABOUT THE ACQUISITION OF WEBSTER AND WHERE TO FIND IT INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT ON FORM F-4 AND THE PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM F-4 WHEN THEY BECOME AVAILA
Slide 5: Financial North Star: 2026–2028 targets
FINANCIAL North Star 2026 – 2028 targets Strength Profitable growth CET1 Profit RoTE c.13% 12-13% operating range >€20bn >20% TNAVps+DPS by 2028 Excess >13% to be returned at the end of the plan Accelerating to High teens by 2028 & Shareholder remuneration Double-digit Reinvesting Payout Cash DPS EP
Slide 6: Key operational targets
Key OPERATIONAL targets 2028 targets Active customers Fees per active customer € constant c.125mn c.135 from 106mn in 2025 from 130 in 2025 Customers >210mn Revenue up MSD and from 180mn in 2025 Cost per active customer € constant total costs down every year1 on the back of c.220 from 264 in 2025 ON
Slide 7: Our unique business model and ONE Transformation will drive growth and capital allocation
Our unique business model and ONE Transformation, powered by our network businesses, will drive a new paradigm of growth and capital allocation Customer growth Revenue Increasing Scale up RoTE Customer focus ONE Transformation & Diversification Costs Higher Network businesses down Value creation eve
Slide 8: Macro framework: our baseline scenario
Macro framework: our baseline scenario Resilient results even under conservative macro assumptions GDP growth % YoY CPI growth % YoY Unemployment rate 4.4 2.4 3.9 3.9 4.0 4.0 2.1 2.0 2.0 2.0 10.3 10 1.8 1.8 3.1 3.1 9.7 1.6 1.6 1.5 1.5 2.4 1.4 1.4 2.4 2.3 2.3 2.4 2.3 2.0 2.1 6.2 6.2 6.6 1.0 1.0 4.8 4
Slide 9: Our Balance Sheet
Our BALANCE SHEET 9
Slide 10: We have successfully repositioned our balance sheet
We have successfully repositioned our balance sheet, built on strong and resilient foundations Loan mix evolution (current €bn) Expected loan growth Target CAGR 25-28 const. currency €1.0trn c.€1.2trn Retail & ex-Poland Commercial ↑ M-HSD Mortgages Mortgages ↑ LSD 38% 38% ↑ HSD 75% c.80% ↑ MSD hard
Slide 11: Similar or better growth with a lower-risk loan portfolio
We can now deliver similar or better growth with a lower-risk loan portfolio Low risk profile R&C Openbank CIB c.80% Europe Wealth of loan book Cost of risk below Group’s current CoR 1.14% Cost of risk Medium-low risk profile R&C Andean countries c.1.15% 1-1.10% c.10% Cost of risk around or below 3%
Slide 12: Growing our deposit franchise for a lower-risk funding structure
Growing our deposit franchise to build a more robust, lower-risk funding structure Demand Time SMEs & CIB Others Deposit mix evolution (current €bn) deposits deposits Corporates Expected deposit growth Target CAGR 25-28 const. currency Loan to deposits 98% c.95% Retail & €0.9trn c.€1.2trn Commercial
Slide 13: Deposit-led and diversified funding base with strong liquidity
Sound deposit-led and diversified funding base with strong liquidity, no structural funding needs and a simple, easy-to-execute issuance plan Estimated funding plan - Banco Santander S.A. €bn 2026 2027 2028 Hybrids 1-2.5 1.5-3 2-3.5 Stable deposit structure of our consolidated at Group level SNP+Sen
Slide 14: Active balance sheet and ALCO management to protect NII
Active balance sheet and ALCO management to protect NII through-the-cycle 2025 Bond portfolio ex-Poland ALCO portfolio € ALCO €147bn We aim to continue managing interest rate sensitivity, optimizing the ALCO portfolio Yield Duration Liquidity 25% c.€50bn Up LSD +3.3% 6.4y portfolio 2025 IRRBB portfo
Slide 15: Conservative approach to FX management
Conservative approach to FX management CET1 ratio: 100% excess1 hedged Core capital ratio is fully hedged FX Exposure Cost of hedge2 2025 2025 P&L hedging is calibrated to our forward-looking view on the evolution of relevant market currencies €18.3bn €0.7bn P&L hedge 100% covered 2026 2026 in line
Slide 16: Our Profitable Growth
Our PROFITABLE GROWTH 16
Slide 17: Balance sheet close to rate neutrality
Disciplined ALCO actions and active hedge management have brought the balance sheet close to rate neutrality NII sensitivity to -100bps to a parallel shift (figures in mn) Actual Estimate1 Balance sheet 2023 2025 2026 € -1,045 -532 c. -500 £ -269 -204 c. -200 $ -237 -162 -100/-130 BRL 155 48 50/100
Slide 18: Positive NII outlook: stable rates and lower rates in Brazil
Positive NII outlook: stable rates in developed markets and tailwinds from lower rates in Brazil 2022-20241 2024-20252 2026-2028 Challenging scenario More benign Natural hedge for Group NII is Active pricing and margin discipline scenario behind us Developed economies - positive sensitivity to rates
Slide 19: Continued NII expansion supported by volume growth and ALCO strategy
We will continue to expand NII, supported by lower rate sensitivity, volume growth, improved funding and our ALCO strategy NII waterfall (€bn) 60 € constant at constant perimeter Up L-MSD CAGR 25-28 Drivers CAGR 25-28 % 55 by Global business target 50 € constant at constant perimeter M-HSD Retail &
Slide 20: High quality fee growth driving structural operating leverage
High quality fee growth driving structural operating leverage Fee income (constant €bn) Non-NII to drive >40% of revenue growth (2025–28)1 CAGR 25-28 % Contribution to revenue HSD growthConstant € 70% 73% c.30% of the increase coming 74% from high quality fee businesses (Wealth & Payments) 30% 26% 2
Slide 21: All businesses contributing to robust revenue growth
All our businesses contributing to robust revenue growth, with non-interest income growing more than NII Revenue waterfall (€bn) Drivers CAGR 25-28 % € constant by Global business target at constant perimeter € constant CAGR 25-28 at constant perimeter CAGR 25-28 MSD growth MSD Retail & Commercial 8
Slide 22: Structural cost discipline delivering higher operating leverage
Structural cost discipline delivering higher operating leverage Costs (constant €bn) Becoming more efficient while still investing for growth We changed Group’s reporting to enhance transparency and EFFICIENCIES INFLATION & INVESTMENTS €4 - 5bn €3.5 - 4.5bn 30 comparability 25 28.5 <27 Net impact in
Slide 23: Conservative cost of risk assumptions
Conservative cost of risk assumptions: improved mix reducing CoR throughout the plan Cost of risk by countries % 2025 2028 target Spain 0.4% UK 0.1% Stable … heading to a normalized across our Group cost of risk Brazil 4.2% portfolios US 1.6% with the c.1.15% 1-1.10% Mexico 2.7% mix effect 23-25 ave
Slide 24: A smaller, more efficient Corporate Centre
A smaller, more efficient Corporate Centre supporting more stable Group results Weight out of Group’s ordinary profit 2025 2028 target 21% c.-8% Group operating areas 21% c.-5% Group 21% Corporate operating 46% Corporate 46% 46% areas Centre Centre 22% 22% 22% Leaner Corporate Centre, reducing the o
Slide 25: The roadmap to >20% RoTE
The roadmap to >20% RoTE 2028 target and drivers % RoTE waterfall c.+1/+2pp c.+0/+1pp c.+3/+4pp >20% c.-0/-1pp Further 16.3% 15.2% Revenue Costs Cost of risk Other1 upside from • NII Up L-MSD • <27bn constant € • 1-1.10% revenue and cost • Fees & other by 2028 through the revenue Up • Productivity c
Slide 26: The roadmap to >20% RoTE by country
The roadmap to >20% RoTE by country Units where profitability levels are in line or above 20% RoTE RoTE improvement 2025 2028 target 10.2% c.16% Already above Group’s 2028 RoTE target UK Units where we are accelerating our transformation with recent bolt-on acquisitions BRA 15.3% c.20% US 10.2% c.18
Slide 27: Our Capital Discipline
Our CAPITAL DISCIPLINE 27
Slide 28: Our capital allocation framework
We follow a rigorous capital allocation hierarchy… Our capital allocation framework Organic growth 1 • Accelerate strategy • Strengthen market leadership Ordinary distributions 2 • We are increasing our cash dividend to 35% from 2027, within our 50% payout • 15% share buybacks Bolt-on acquisitions1
Slide 29: Virtuous cycle that maximizes shareholder value creation
…supported by our virtuous cycle that maximizes shareholder value creation 1/3 matures at 1/3 reinvested current RoTE at >20% RoTE RoTE 50% payout RWAs at RoTE c.€630bn < 16.3% >20% Hedging in 2025 2025 Supervisory RWAs to grow LSD 2028 target requirements Asset rotation Additional growth well below
Slide 30: Asset mobilisation: key tool to maximize capital productivity
Asset mobilisation: key tool to maximize capital productivity, with only c.€2bn capital mobilized through SRTs in 2025 Asset mobilisation: generated capital 2025 7 6 c.€6bn >10% increase in 5 50% | c.€3bn profitability with 4 zero net capital 3 consumption 2 30% | c.€2bn 1 20% | c.€1bn 0 TotalTotal
Slide 31: Active RWA discipline turning growth into capital-efficient revenue
Our active RWA discipline is increasingly turning growth into higher-quality, capital-efficient revenue RWAs RoRWA (%) 2.4 c.2.7% Revenue constant € Profitability 1.8 2.0 RWAs ex-inorganics 2022 2023 2025 2028 target Asset mobilisation (RWAs in €bn) 45 Continued asset 30 €30-35 Base 100 rotation & 1
Slide 32: Recent transactions show commitment to value-accretive capital redeployment
Our recent transactions show our commitment to value-accretive capital redeployment We used our capital CET1 RoTE target RoIC EPS Group CET1 optionality to: impact by 2028 accretion 2028 12-13% operating range Reinforce our 12.8-13% TSB acquisition c.-50bps c.16% 20%+ c.4% business in the UK 2026 ta
Slide 33: Disciplined capital allocation unlocking sustainable capital optionality
Disciplined capital allocation unlocking sustainable capital optionality 2022 - 2025 c.+600bps 12.0% 13.5% growing capital c.-350bps c.-50bps c.-80bps fuelled by the c.90% of RWAs focus in growth offset by profitability risk transfer CET1 Att. Profit Capital 1 Net organic 2 Hedges, 2025 2022 distrib
Slide 34: Our Objective
Our OBJECTIVE 34
Slide 35: 2022–2025: double-digit value creation delivered
2022–2025: double-digit value creation delivered in line with our commitments 2022 – 2025 avg. value creation1 RoTE pre-AT1 avg. 6.00 16.1% c.+1pp c.+14% 5.80 5.60 c.+0/1pp c.-1pp c.-3pp 5.40 5.20 5.00 4.80 4.60 4.26 4.40 4.20 4.00 TNAVps TNAVps (BoP) (Dec-22) Organic AT1's AT1s FX Interest Others A
Slide 36: Accelerating value creation to high teens through the plan
Accelerating value creation to High teens through the plan Revenue growth Costs Profit CET1 Mid-single Down 2026 digit in constant € Up vs. €14.1bn in 2025 12.8-13% operating range Excluding Poland, TSB in constant € 12-13% and Webster in 2025-26 With fees growing Resulting in positive more than NII
Slide 37: Financial North Star: 2026–2028 targets
FINANCIAL North Star 2026 – 2028 targets Strength Profitable growth CET1 Profit RoTE c.13% 12-13% operating range >€20bn >20% TNAVps+DPS by 2028 Excess >13% to be returned at the end of the plan Accelerating to High teens by 2028 & Shareholder remuneration Double-digit Reinvesting Payout Cash DPS EP
Slide 38: Appendix
APPENDIX 38
Slide 39: ALCO portfolio detail
ALCO portfolio detail ALCO portfolio ex-Poland 59 €bn €147bn 17 o/w HTC 16 15 €111bn 10 9 9 8 4 SPAIN US MEX BRA UK CHI PORT SCF OTHERS Note: Data as of 31 December 2025 39
Slide 40: US deep-dive
US deep-dive 25% Webster acquisition reinforces our SAN US franchise 20% +c.3pp c.18% +c.1pp +c.1pp >18% +c.3pp 15% 10% 10% 5% 0% RoTE Full integration of Capturing full potential Doubling down on Webster RoTE 2025 Openbank platform of CIB platform fee-based businesses 2028 • Global platform for • F
Slide 41: UK deep-dive
UK deep-dive 25% c.16% 20% +c.3pp 15% +c.3pp 10% 10% 5% 0% RoTE 2025 UK standalone TSB post synergies RoTE 2028 • >£200mn of cost • A low-risk, in-market base synergies transaction offering high cost-synergies (>£400mn) Significant synergy potential compounded by ONE Transformation benefits Note: TS
Slide 42: Brazil deep-dive
Brazil deep-dive 30% +c.2pp c.20% +c.2pp 25% +c.1pp +c.2pp 15% 20% 15% 10% 5% 0% RoTE 2025 Retail Consumer CIB Payments RoTE 2028 • Lower cost of funding • Positioned to fully • Decommissioning • Implementation • Selective customer extract value from of legacy systems of proprietary growth market le
Slide 43: Openbank Europe deep-dive
Openbank Europe deep-dive 16% +c.1pp c.14% 14% +c.3pp 12% 10% c.9% 8% c.7% 6% 4% 2% 0% RoTE 2025 RoTE 2025 adjusted Growth Costs RoTE 2028 • Target profitable • Merge of legal entities primacy, not just will lead to: customer acquisition - More consistent, efficient and seamless experience • Scaling
Slide 44: Thank you
Thank you >