Webster Financial Corporation · NYSE:WBS
Webster Financial — Investor Day (February 2026)
44 slides from Webster Financial's investor day presentation, Feb 25, 2026
Slide 1: Jose García Cantera, Group CFO, 25 February, London
1 Jose García Cantera | Group CFO 25 February | London
Slide 2: Non-IFRS and alternative performance measures; forward-looking statements
2 2 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 as alternativ
Slide 3: Forward-looking statements: Webster and Santander risk factors
3 3 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 results, financial
Slide 4: Additional information about the acquisition of Webster and where to find it
4 4 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 AVAILABLE, AS WELL A
Slide 5: 2026–2028 financial targets
5 5 2026 – 2028 targets FINANCIAL North Star Reinvesting capital organically >20% RoTE Increase cash dividend payout to 35% from 2027 Shareholder remuneration 50% Payout >x2 by 2028 1 Cash DPS TNAVps+DPS Accelerating to High teens by 2028 Double - digit EPS annual growth 2026 - 2028 & Profitable gro
Slide 6: Key operational targets 2028
6 6 Key OPERATIONAL targets 2028 targets Note : Customers projections include TSB and Webster . TSB and Webster transactions pending completion and subject to customary conditions including regulatory and, for Webster, shareholder approvals . 1. € constant at constant perimeter (excluding Poland in
Slide 7: Our unique business model and ONE Transformation
7 1. € constant at constant perimeter (excluding Poland in 2025 and announced bolt - ons) . TSB and Webster transactions pending completion and subject to customary conditions including regulatory and, for Webster also shareholder approvals . Our unique business model and ONE Transformation , powere
Slide 8: Macro framework: our baseline scenario
8 Macro framework : our baseline scenario GDP growth % YoY CPI growth % YoY 1.8 1.0 1.5 1.5 1.0 1.6 1.4 1.8 2.0 2.0 1.6 1.4 2.1 2.0 2.4 SPA UK BRA US MEX 2026 2027 2028 2.0 2.4 4.4 3.1 3.9 2.4 2.3 3.9 2.4 4.0 2.1 2.3 3.1 2.3 4.0 SPA UK BRA US MEX 2026 2027 2028 European Central Bank Federal Reserve
Slide 9: Balance Sheet
b Our) BALANCE SHEET
Slide 10: Loan mix evolution and expected loan growth
10 13% 15% 16% 18% 38% Loan mix evolution (current €bn) Expected loan growth Target CAGR 25 - 28 const. currency ↑ M - HSD Retail & Commercial ↑ LSD ↑ HSD ↑ MSD ↑ M - HSD ↑ LSD Openbank Flat ↑ MSD ↑ HSD CIB c.€1. 2 t rn TSB c.€40bn Webster c.€50bn CIB No more than 20% allocated capital SMEs & Corpor
Slide 11: Cost of risk and lower-risk loan portfolio
11 Cost of risk c.1.1 5% 23 - 25 average 1 - 1.10 % 26 - 28 average target Group CoR is expected to remain stable at a portfolio level with the mix shift post announced bolt - ons 1 taking Group cost of risk lower Medium - high risk profile Medium - low risk profile Low risk profile c.80 % of loan b
Slide 12: Deposit mix evolution and cost of deposits
12 98 % c.95% CIB Others SMEs & Corporates Time deposits Demand deposits 40% 17% 25% 12% 6% 41% 14% 24% 15% 6% €0.9tr n ex - Poland Loan to deposits Cost of deposits (%) c.€1.2t rn TSB c.€40bn Webster c.€60bn c.75% of our deposits are government guaranteed 2025 2028 target 24 - 25 avg. 26 - 28 avg.
Slide 13: Liquidity, funding plan, TLAC and MREL buffers
13 Stable deposit structure at Group level Strong LCR and NSFR 1 across subsidiaries Liquidity buffer consists of 96% EHQLA’s, diversified by currencies: €338bn HQLAs LtD 2 NSFR LCR 98 126 155 2028 2027 2026 €bn 2 - 3.5 1.5 - 3 1 - 2.5 Hybrids 8 - 10 15 - 17 13 - 15 SNP+Senior 2 - 4 0.5 - 1 0.5 - 2
Slide 14: ALCO portfolio and structural hedge management
14 25 % Liquidity portfolio 75 % ALCO IRRBB 2025 Bond portfolio ex - Poland €147 bn ALCO portfolio Structural hedge Up LSD Spain NII 2026 target c.€50bn 2025 IRRBB portfolio +3.3% € ALCO 6.4y We aim to continue managing interest rate sensitivity, optimizing the ALCO portfolio £105bn Avg. SP 2025 Up
Slide 15: Conservative approach to FX management
15 Core capital ratio is fully hedged P&L hedging is calibrated to our forward - looking view on the evolution of relevant market currencies 202 6 100% covered FX Exposure €18.3b n 2026 in line with 2025 2025 Cost of hedge 2 €0.7bn 2025 CET1 ratio: 100% excess 1 hedged P&L hedge Note : P&L hedged of
Slide 16: Our Profitable Growth
16 Our PROFITABLE GROWTH
Slide 17: NII sensitivity: balance sheet close to rate neutrality
17 2026 2025 2023 Balance sheet c . - 500 - 532 - 1,045 € c . - 200 - 204 - 269 £ - 100/ - 130 - 162 - 237 $ 50/100 48 155 BRL NII sensitivity to - 100bps to a parallel shift (figures in mn) Actual Estimate 1 Note : TSB and Webster transactions pending completion and subject to customary conditions
Slide 18: Group NII outlook: challenging scenario behind us
18 Group NII 24 - 25 constant € +1% Group NII 22 - 24 constant € +23% Challenging scenario for Group NII is behind us Natural hedge BCB c.+450bps ECB c.+450bps BoE c.+515bps Fed c.+525bps BCB c.+850bps ECB c. - 235bps BoE c. - 125bps Fed c. - 175bps Up L - MSD More benign scenario Stable rates Posit
Slide 19: NII waterfall 2025 to 2028 target
19 30 35 40 45 50 55 60 2025 ex - Poland 2028 target 42 NII waterfall ( €bn) Up L - MSD CAGR 25 - 28 Retail & Commercial Openbank Drivers by Global business CAGR 25 - 28 % target € constant at constant perimeter Hard currencies Soft currencies M - HSD MSD M - HSD L - MSD L - MSD LSD M&A 2025 pro - f
Slide 20: Fee income growth driving operating leverage
20 13 0 2 4 6 8 10 12 14 16 18 2022 2025 2028 Fee income ( constant €bn) CAGR 25 - 28 HSD growth Constant € c.30% of the increase coming from high quality fee businesses (Wealth & Payments) % Contribution to revenue % Fees to cost 49% c.65 % Non - NII to drive >40% of revenue growth (2025 – 28) 1 20
Slide 21: Revenue waterfall 2025 to 2028 target
21 MSD Revenue 2025 TSB & Webster NII Beyond interest … Revenue 2028 40.00 45.00 50.00 55.00 60.00 65.00 70.00 75.00 80.00 85.00 Up L - MSD 58 Retail & Commercial Wealth Openbank CIB Payments Drivers by Global business CAGR 25 - 28 % target Revenue waterfall ( €bn) CAGR 25 - 28 Up HSD CAGR 25 - 28 2
Slide 22: Structural cost discipline and efficiency ratio
22 c.36 % <27 25.7 26.4 28.5 5 10 15 20 25 30 2025 reported 2025 after changes to Reporting & ex - Poland 2025 pro - forma (including TSB & Webster) 1 20 28 target Costs ( constant €bn) We changed Group’s reporting to enhance transparency and comparability Other results - €3.4bn < - €1.5bn - €0.8bn
Slide 23: Cost of risk by country
23 0.4% 0.1% Spain Cost of risk by countries % UK 4.2% Brazil 1.6% US 2.7% Mexico 1 .0% Openbank Europe 2025 c.1.1 5% 23 - 25 average 1 - 1.10 % 26 - 28 a verage target … heading to a normalized Group cost of risk 202 8 target Stable across our portfol ios with the mix effect post recent TSB 2 0. 1
Slide 24: Leaner Corporate Centre
24 22% 46% 21% 2025 Weight out of Group’s ordinary profit c. - 8% L eaner Corporate Centre, reducing the overall Group’s volatility 22% 46% 21% Corporate Centre 22% 46% 21% 2028 target c. - 5% A smaller, more efficient Corporate Centre supporting more stable Group results Note: Corporate Centre % we
Slide 25: The roadmap to >20% RoTE
25 2028 target and drivers % RoTE waterfall 2025 reported 2028 target Othe r 1 c.+ 3 /+ 4 pp c.+0/+1p p c. - 0/ - 1pp Beyond 2028 Further upside from revenue and cost synergie s • NII Up L - MSD • Fees & other revenue Up HSD • <27bn constant € by 2028 • Productivity uplift & platforms simplification
Slide 26: The roadmap to >20% RoTE by country
26 Units where profitability levels are in line or above 20% RoTE Already above Group’s 2028 RoTE target Units where we are accelerating our transformation with recent bolt - on acquisitions Units benefiting from interest rates cycle and ONE T ransformation Openbank Europe 10.2% UK 15.3% BRA 6.7% Op
Slide 27: Our Capital Discipline
27 Our CAPITAL DISCIPLINE
Slide 28: Our capital allocation framework
28 Bolt - on acquisitions 1 Organic growth Ordinary distributions Special distributions • Clear strategic and financial rationale • RoIC of 15%, above cost of capital and current return on capital from SBBs • Accelerate strategy • Strengthen market leadership • We are increasing our cash dividend to
Slide 29: Virtuous cycle maximizing shareholder value creation
29 RoT E >20% 2028 target RoT E 16.3% 2025 < RWAs at c.€630bn in 2025 RWAs to grow LSD Hedging 50% payout Supervisory requirements 1/3 matures at current RoTE 1/3 reinvested at >20% RoTE Asset rotation well below cost of capital Additional growth >20% RoTE …supported by our virtuous cycle that maxim
Slide 30: Asset mobilisation: generated capital 2025
30 Asset mobilisation : generated capital 2025 Total capital relief Assets sales & other SRTs Cash securitizations 0 1 2 3 4 5 6 7 Total capital relief Assets sales & other Synthetic SRTs Cash securitizations c.€6bn 50% | c.€3bn 30% | c.€2bn 20% | c.€1bn >10% increase in profitability with zero net
Slide 31: Active RWA discipline and capital-efficient revenue
31 Our active RWA discipline is increasingly turning growth into higher - quality, capital - efficient revenue 2. 4 1. 8 2. 0 RoRWA (%) Profitabilit y Continued asset rotation & risk transfer RWAs Revenue constant € RWAs ex-inorganics 2025 2026 2027 2028 25 - 28 target 2024 Base 100 Note: RWAs ex -
Slide 32: Capital optionality: TSB and Webster acquisitions
32 We used our capital optionality to: U K Reinforce our business in the U S Accelerate our transformation in the Group CET1 12.8 - 13% 2026 target 12 - 13% operating range >13% 2027 target CET1 impact RoTE target by 2028 RoIC EPS accretion 2028 c.16 % 20 %+ c.4 % c.18 % c.15 % c.7 - 8% TSB acquisit
Slide 33: CET1 evolution and capital optionality
33 CET1 2025 Att. Profit Capital distribution Net organic RWAs Announced transactions Hedges, models & other Capital optionality 2028 target CET1 2022 Att. Profit Capital distribution Net organic RWAs Hedges, models & other 2025 13.5 % 12.0 % c.90% of RWAs growth offset by risk transfer c.+600bps c.
Slide 34: Our Objective
34 Our OBJECTIVE
Slide 35: 2022–2025 double-digit value creation delivered
35 TNAVps (BoP) Organic generation AT1's FX Interest Rates Others Avg. Value creation 4.00 4.20 4.40 4.60 4.80 5.00 5.20 5.40 5.60 5.80 6.00 c.+14 % 4.26 RoTE pre - AT1 avg. 16.1% c. - 1pp c. - 3pp c.+0/1 pp c.+1pp 2022 – 2025: double - digit value creation delivered in line with our commitments 1.
Slide 36: Accelerating value creation to high teens through the plan
36 Revenue growth Costs Profit CET1 2026 Excluding Poland, TSB and Webster in 2025 - 26 2027 Including TSB and Webster Resulting in positive operational leverage With fees growing more than NII operating range 12 - 13% vs. €14.1bn in 2025 Mid - single digit Down Up 12.8 - 13% in constant € in consta
Slide 37: Financial North Star 2026–2028 targets
37 37 FINANCIAL North Star 2026 – 2028 targets Note : The board of directors intends ( 1 ) to apply an ordinary shareholder remuneration policy for 2026 to 2028 results that entails allocating approximately 50 % of the Group’s underlying profit (excluding non - cash, non - capital ratios impact item
Slide 38: Appendix
38 APPENDIX
Slide 39: ALCO portfolio detail
39 ALCO portfolio detail 59 17 16 15 10 9 9 8 4 SPAIN US MEX BRA UK CHI PORT SCF OTHERS ALCO portfolio ex - Poland €147b n o/w HTC €111bn €bn Note : Data as of 31 December 2025
Slide 40: US deep-dive: Webster acquisition reinforces SAN US franchise
40 RoTE 2025 Full integration of Openbank platform Capturing full potential of CIB platform Doubling down on fee - based businesses Webster RoTE 2028 0% 5% 10% 15% 20% 25% US deep - dive >18% 10% +c.3pp +c.3pp +c.1pp +c.1pp • Global platform for omni - channel deposit gathering that pairs our leadin
Slide 41: UK deep-dive
41 UK deep - dive RoTE 2025 UK standalone TSB post synergies RoTE 2028 0% 5% 10% 15% 20% 25% c.16% 10% • A low - risk, in - market transaction offering high cost - synergies (>£400mn) • >£200mn of cost base synergies Significant synergy potential compounded by ONE Transformation benefits +c.3pp +c.3
Slide 42: Brazil deep-dive
42 Brazil deep - dive RoTE 2025 Retail Consumer CIB Payments RoTE 2028 0% 5% 10% 15% 20% 25% 30% 15% c.20 % • Positioned to fully extract value from market leadership (originate - to - sell) • Lower cost of funding • Selective customer growth • Shift to digital - first (to serve the mass segment pro
Slide 43: Openbank Europe deep-dive
43 RoTE 2025 RoTE 2025 adjusted Growth Costs RoTE 2028 0% 2% 4% 6% 8% 10% 12% 14% 16% c.7% c.14 % +c.3p p +c.1pp c. 9 % • Target profitable primacy, not just customer acquisition • Scaling our platforms in our core initial markets • Multi - product recurring revenue streams • Merge of legal entities
Slide 44: Thank you
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 undersigned, thereunto duly authorized. Banco Santander, S.A. Date: February 25, 2026 By: /s/ Pedro de Mingo Kaminouchi Name: Pedro de