Banco Santander, S.a. · BME:SAN
Banco Santander — Corporate Update (April 2022)
33 slides from Banco Santander's corporate update, Apr 4, 2022
Slide 1: Reallocation of the Corporate Centre's financial costs to operating units and other reporting changes
Reallocation of the Corporate Centre’s financial costs to operating units and other reporting changes Here. Now. April 2022
Slide 2: Important information
Important information 2 Non - IFRS and alternative performance measures This document 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 3 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 sta
Slide 4: Executive Summary
4 Executive Summary These changes have no impact on the Group’s reported consolidated financial figures With the aim of increasing transparency and improving capital allocation to continue enhancing our profitability, we will make the following main changes to our financial reporting from and includ
Slide 5: Main impacts on NII from allocation from Corporate Centre to country units
5 Main impacts on NII from allocation from Corporate Centre to country units Impact on NII from MREL/TLAC cost allocation and cost of funding excess capital from Corporate Centre to country units - 378 - 107 - 26 - 8 - 1 - 133 - 16 - 240 - 290 - 29 - 48 - 29 Digital Consumer B a n k - 1,390 2021 pub
Slide 6: Main impacts from perimeter changes from Other Europe to Spain
6 Main impacts from perimeter changes from Other Europe to Spain Total assets Spain Impacts on Income Statement Total income Other Europe - 1,032 - 91 +1,032 +91 Operating expenses - 712 + 712 Loans 1 - 44 +44 LLPs - 487 + 487 Deposits 2 - 26 +26 Underlying PBT +154 - 154 RWAs - 30 +30 Underlying pr
Slide 7: Impacts on profit by primary and secondary segments
Impacts on profit by primary and secondary segments North America South America DCB 3,053 1,332 3,328 - 93 - 168 - 11 2021 published 2021 new Dif f e r en c e Europe 2,9 7 8 2,7 5 0 - 229 o/w Spain 957 627 - 330 2,960 1,164 3,317 Corporate Centre - 2,037 +501 - 1,535 Retail Banking 2021 published 7,
Slide 8: Impact on Europe's costs 2020-2021
Impact on Europe’s costs 2020 - 2021 Costs: 2020 - 2021 published vs 2021 new EUR mn 2020 Published Spain 3,607 2021 Published 3,340 2021 New 4,052 Portug a l 590 563 563 Po la nd 629 6 6 3 663 U K 2,5 3 9 2,5 9 2 2,5 9 2 4 countries 7, 3 65 7 , 1 5 7 7, 8 69 Other E u ro p e 909 1,1 6 1 450 E U ROP
Slide 9: 2022 public targets: Adjusted RoTE and Efficiency ratio
Adjusted RoTE 2022 public targets Efficiency ratio Published New EUROPE >12% >10% Spain >11% ~8% UK >13% ~13% Portugal ~19% ~19% Poland ~14% >13% NORTH AMERICA ~20% ~20% US ~19% ~19% Mexico ~29% ~29% SOUTH AMERICA ~25% ~25% Brazil >26% >26% Chile >27% >27% DCB >15% ~14% TOTAL GROUP >13% >13% 9 Publi
Slide 10: Appendix: Primary segments
Appendix: Primary segments 10
Slide 11: Europe
11 Europe EUR million NEW (pro forma) Q1'21 Q2'21 Q3'21 Q4'21 PREVIOUS Q1'21 Q2'21 Q3'21 Q4'21 DIFFERENCES Q1'21 Q2'21 Q3'21 Q4'21 Income statement Net interest income 2 , 55 1 2 , 65 6 2,650 2 , 71 7 2 , 64 5 2 , 75 1 2,744 2,812 ( 94 ) ( 95 ) (94) ( 95 ) Net fee income 1 , 07 2 1 , 08 6 1,080 1 ,
Slide 12: Spain
12 Spain EUR million NEW (pro forma) Q1'21 Q2'21 Q3'21 Q4'21 PREVIOUS Q1'21 Q2'21 Q3'21 Q4'21 DIFFERENCES Q1'21 Q2'21 Q3'21 Q4'21 Income statement Net interest income 1 , 07 4 1 , 06 5 998 1 , 02 8 1 , 01 9 1 , 01 5 975 985 54 51 23 44 Net fee income 684 693 679 732 587 617 616 661 97 77 62 71 Gains
Slide 13: United Kingdom
United Kingdom EUR million NEW (pro forma) Q1'21 Q2'21 Q3'21 Q4'21 PREVIOUS Q1'21 Q2'21 Q3'21 Q4'21 DIFFERENCES Q1'21 Q2'21 Q3'21 Q4'21 Income statement Net interest income 989 1 , 08 8 1 , 15 6 1 , 15 1 1 , 00 1 1 , 10 0 1 , 16 8 1 , 16 3 ( 12 ) ( 12 ) ( 12 ) ( 12 ) Net fee income 120 117 114 82 12
Slide 14: Portugal
Portugal EUR million NEW (pro forma) Q1'21 Q2'21 Q3'21 Q4'21 PREVIOUS Q1'21 Q2'21 Q3'21 Q4'21 DIFFERENCES Q1'21 Q2'21 Q3'21 Q4'21 Income statement Net interest income 185 184 178 174 193 192 185 181 ( 7 ) ( 7 ) (7) ( 7 ) Net fee income 99 110 115 116 99 110 115 116 — — — — Gains (losses) on financia
Slide 15: Poland
Poland EUR million NEW (pro forma) Q1'21 Q2'21 Q3'21 Q4'21 PREVIOUS Q1'21 Q2'21 Q3'21 Q4'21 DIFFERENCES Q1'21 Q2'21 Q3'21 Q4'21 Income statement Net interest income 233 242 244 302 240 250 251 309 ( 7 ) ( 7 ) (7) ( 7 ) Net fee income 127 126 133 132 127 126 133 132 — — — — Gains (losses) on financia
Slide 16: Other Europe
Other Europe EUR million NEW (pro forma) Q1'21 Q2'21 Q3'21 Q4'21 PREVIOUS Q1'21 Q2'21 Q3'21 Q4'21 DIFFERENCES Q1'21 Q2'21 Q3'21 Q4'21 Income statement Net interest income 71 76 75 61 192 195 165 174 ( 122 ) ( 119 ) ( 91 ) ( 112 ) Net fee income 41 38 39 44 138 115 101 117 ( 97 ) ( 77 ) ( 62 ) ( 72 )
Slide 17: North America
North America EUR million NEW (pro forma) Q1'21 Q2'21 Q3'21 Q4'21 PREVIOUS Q1'21 Q2'21 Q3'21 Q4'21 DIFFERENCES Q1'21 Q2'21 Q3'21 Q4'21 Income statement Net interest income 1 , 97 1 1 , 97 7 2 , 03 7 2,086 2 , 00 5 2 , 01 0 2 , 07 0 2 , 11 9 ( 33 ) ( 33 ) ( 33 ) ( 33 ) Net fee income 451 410 386 397
Slide 18: United States
United States EUR million NEW (pro forma) Q1'21 Q2'21 Q3'21 Q4'21 PREVIOUS Q1'21 Q2'21 Q3'21 Q4'21 DIFFERENCES Q1'21 Q2'21 Q3'21 Q4'21 Income statement Net interest income 1 , 31 0 1,300 1 , 33 2 1 , 35 6 1 , 33 7 1 , 32 6 1,359 1 , 38 3 ( 27 ) (27) (27) ( 27 ) Net fee income 241 191 174 176 241 191
Slide 19: Mexico
Mexico EUR million NEW (pro forma) Q1'21 Q2'21 Q3'21 Q4'21 PREVIOUS Q1'21 Q2'21 Q3'21 Q4'21 DIFFERENCES Q1'21 Q2'21 Q3'21 Q4'21 Income statement Net interest income 661 678 705 730 667 684 711 736 ( 7 ) (7) (7) ( 7 ) Net fee income 204 210 203 211 204 210 203 211 — — — — Gains (losses) on financial
Slide 20: Other North America
Other North America EUR million NEW (pro forma) Q1'21 Q2'21 Q3'21 Q4'21 PREVIOUS Q1'21 Q2'21 Q3'21 Q4'21 DIFFERENCES Q1'21 Q2'21 Q3'21 Q4'21 Income statement Net interest income 0 0 0 0 0 0 0 0 — — — — Net fee income 7 8 9 10 7 8 9 10 — — — — Gains (losses) on financial transactions * 0 ( 0 ) ( 0 )
Slide 21: South America
South America EUR million NEW (pro forma) Q1'21 Q2'21 Q3'21 Q4'21 PREVIOUS Q1'21 Q2'21 Q3'21 Q4'21 DIFFERENCES Q1'21 Q2'21 Q3'21 Q4'21 Income statement Net interest income 2 , 57 0 2,756 2,916 3 , 06 5 2 , 57 5 2,760 2,920 3,069 ( 4 ) (4) (4) ( 4 ) Net fee income 842 928 956 995 842 928 956 995 — —
Slide 22: Brazil
Brazil EUR million NEW (pro forma) Q1'21 Q2'21 Q3'21 Q4'21 PREVIOUS Q1'21 Q2'21 Q3'21 Q4'21 DIFFERENCES Q1'21 Q2'21 Q3'21 Q4'21 Income statement Net interest income 1 , 77 8 1 , 91 7 2 , 08 1 2 , 09 1 1 , 78 0 1 , 91 9 2 , 08 3 2 , 09 3 ( 2 ) ( 2 ) (2) ( 2 ) Net fee income 632 698 696 701 632 698 69
Slide 23: Chile
Chile EUR million NEW (pro forma) Q1'21 Q2'21 Q3'21 Q4'21 PREVIOUS Q1'21 Q2'21 Q3'21 Q4'21 DIFFERENCES Q1'21 Q2'21 Q3'21 Q4'21 Income statement Net interest income 497 511 467 508 497 511 467 508 — — — — Net fee income 95 96 104 100 95 96 104 100 — — — — Gains (losses) on financial transactions * 32
Slide 24: Argentina
Argentina EUR million NEW (pro forma) Q1'21 Q2'21 Q3'21 Q4'21 PREVIOUS Q1'21 Q2'21 Q3'21 Q4'21 DIFFERENCES Q1'21 Q2'21 Q3'21 Q4'21 Income statement Net interest income 203 234 267 361 204 235 268 362 ( 1 ) (1) (1) ( 1 ) Net fee income 74 87 110 149 74 87 110 149 — — — — Gains (losses) on financial t
Slide 25: Other South America
Other South America EUR million NEW (pro forma) Q1'21 Q2'21 Q3'21 Q4'21 PREVIOUS Q1'21 Q2'21 Q3'21 Q4'21 DIFFERENCES Q1'21 Q2'21 Q3'21 Q4'21 Income statement Net interest income 92 93 102 105 93 93 102 106 ( 1 ) ( 1 ) (1) ( 1 ) Net fee income 41 46 45 46 41 46 45 46 — — — — Gains (losses) on financi
Slide 26: Digital Consumer Bank
Digital Consumer Bank EUR million NEW (pro forma) Q1'21 Q2'21 Q3'21 Q4'21 PREVIOUS Q1'21 Q2'21 Q3'21 Q4'21 DIFFERENCES Q1'21 Q2'21 Q3'21 Q4'21 Income statement Net interest income 996 1 , 01 5 1 , 01 7 1 , 01 4 1 , 05 6 1 , 07 5 1,077 1 , 07 4 ( 60 ) (60) (60) ( 60 ) Net fee income 188 206 222 204 1
Slide 27: Corporate Centre
Corporate Centre EUR million NEW (pro forma) Q1'21 Q2'21 Q3'21 Q4'21 PREVIOUS Q1'21 Q2'21 Q3'21 Q4'21 DIFFERENCES Q1'21 Q2'21 Q3'21 Q4'21 Income statement Net interest income ( 133 ) ( 164 ) ( 162 ) ( 165 ) ( 324 ) ( 355 ) ( 354 ) ( 357 ) 191 192 192 192 Net fee income ( 5 ) ( 8 ) ( 2 ) ( 12 ) ( 5 )
Slide 28: Appendix: Secondary segments
28 Appendix: Secondary segments
Slide 29: Retail Banking
Retail Banking EUR million NEW (pro forma) Q1'21 Q2'21 Q3'21 Q4'21 PREVIOUS Q1'21 Q2'21 Q3'21 Q4'21 DIFFERENCES Q1'21 Q2'21 Q3'21 Q4'21 Income statement Net interest income 7 , 28 6 7 , 57 3 7 , 77 0 7,966 7 , 47 2 7,766 7 , 96 8 8 , 18 3 ( 186 ) ( 193 ) ( 198 ) ( 216 ) Net fee income 1 , 72 1 1 , 7
Slide 30: Corporate & Investment Banking
Corporate & Investment Banking EUR million NEW (pro forma) Q1'21 Q2'21 Q3'21 Q4'21 PREVIOUS Q1'21 Q2'21 Q3'21 Q4'21 DIFFERENCES Q1'21 Q2'21 Q3'21 Q4'21 Income statement Net interest income 690 716 729 785 720 739 747 788 ( 30 ) ( 23 ) (19) ( 3 ) Net fee income 462 427 433 422 466 434 435 416 ( 4 ) (
Slide 31: Wealth Management & Insurance
Wealth Management & Insurance EUR million NEW (pro forma) Q1'21 Q2'21 Q3'21 Q4'21 PREVIOUS Q1'21 Q2'21 Q3'21 Q4'21 DIFFERENCES Q1'21 Q2'21 Q3'21 Q4'21 Income statement Net interest income 113 115 122 127 88 91 96 100 25 24 26 27 Net fee income 289 306 315 336 297 316 321 343 ( 7 ) (9) (6) ( 7 ) Gain
Slide 32: PagoNxt
PagoNxt EUR million NEW (pro forma) Q1'21 Q2'21 Q3'21 Q4'21 PREVIOUS Q1'21 Q2'21 Q3'21 Q4'21 DIFFERENCES Q1'21 Q2'21 Q3'21 Q4'21 Income statement Net interest income ( 1 ) (1) 0 3 ( 1 ) ( 1 ) 0 3 — — — — Net fee income 81 127 140 144 81 127 141 144 — — — — Gains (losses) on financial transactions *
Slide 33: 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: 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,