Banco Santander, S.a. · BME:SAN
Banco Santander — Q2 2025 Earnings Presentation
58 slides from Banco Santander's earnings presentation, Jul 30, 2025
Slide 1: H1'25 Earnings Presentation
H1’25 Earnings Presentation 30 July 2025
Slide 2: Important information
Important information Non-IFRS and alternative performance measures Banco Santander, S.A. (“Santander”) cautions that this document 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 • acquisitions, integrations, divestitures and challenges arising from deviating management’s resources and attention from other strategic opportunities and operational matters; • climate-related conditions, regulations, targets and weather events; • uncertainty over the scope
Slide 4: H1'25 Highlights
Index 1 2 3 4 H1'25 Highlights Group review Final remarks Appendix Progress on our strategy 4
Slide 5: Well ahead on all our strengthened Investor Day 2025 targets
Well ahead on all our strengthened Investor Day 2025 targets H1’25 vs. 2025 ID targets (incl. upgrades in Q4’24) STRENGTH DISCIPLINED CAPITAL ALLOCATION CET1 RWAs with RoRWA > CoE 13.0% TNAVps + DPS 88% 13% | operating range: 12-13% c.85% SHAREHOLDER REMUNERATION +16% PROFITABILITY Double-digit grow
Slide 6: Record H1 profit, with all global businesses contributing to our 2025 targets
Record H1 profit, with all global businesses contributing to our 2025 targets Q2’25 att. profit H1’25 att. profit Another record quarter resulting in double-digit H1 profit growth, with 8 million new customers YoY and high activity levels €3.4bn €6.8bn +7% +13% Efficiency RoTE post-AT1 Strong operat
Slide 7: Strong revenue performance supporting net operating income and profit growth
Strong revenue performance supporting net operating income and profit growth Group Group excl. Argentina Group P&L Current Constant Current Constant € million H1'25 H1'24 % % % % Excellent business and NII 22,716 23,457 -3 1 -1 4 commercial dynamics Net fee income 6,684 6,477 3 9 0 6 Other income 1,
Slide 8: Consistent execution of ONE Transformation is driving higher revenue and lower costs
Consistent execution of ONE Transformation is driving higher revenue and lower costs … Global & Network Global Tech FY’22 ONE Transformation businesses1 capabilities & others H1’25 45.8% -243bps -104bps -87bps 41.5% • Product simplification: 42% fewer • Wealth: collaboration fees with • Global appro
Slide 9: Solid revenue growth across our global businesses
… supported by solid revenue growth across our 5 global businesses Revenue Contribution to Profit Profitability Profitability H1’25 Efficiency (€ bn) Group revenue (€ bn) H1’25 2025 targets RoTE post-AT1 15.7 50% 39.4% 3.7 17.2% c.17% RETAIL +2% +0.2pp +14% +0.2pp 6.4 41.5% 1.0 10.4% CONSUMER 20% c.
Slide 10: Retail: another quarter of strong YoY profit growth
Retail: another quarter of strong YoY profit growth on the back of solid fee performance and better credit quality, as we become a digital bank with branches H1’25 FINANCIALS Loans Deposits CoR • ONE Transformation is delivering solid results as reflected in fee €599bn €643bn 0.89% growth (+8%), dig
Slide 11: Consumer: strong profit growth in the quarter
Consumer: strong profit growth in the quarter and successful deposit gathering H1’25 FINANCIALS Loans Deposits CoR • We continue to enhance Openbank’s value proposition since its recent launch in the US, Mexico and Germany €211bn €130bn 2.09% +2% +10% -8bps • Loans up, driven by auto. Strong deposit
Slide 12: CIB: improvement in profitability driven by fee growth
CIB: improvement in profitability driven by 9% fee growth year-on-year H1’25 FINANCIALS Loans Deposits CoR • Solid execution of our strategy focused on fees and capital-light business, driving RoTE above 20%, while we maintain a leading €135bn €125bn 0.09% position in efficiency -2% 0% -6bps • Stron
Slide 13: Wealth: strong profit growth
Wealth: strong profit growth, with revenue increases across business lines and collaboration fees up close to double digits H1’25 FINANCIALS Net new money Net sales Gross written (PB) (SAM) premiums • Increased focus on value-added investment solutions and services, improving recurrency while mainta
Slide 14: Payments: enhanced scale through global platforms
Payments: enhanced scale through global platforms driving strong profit and profitability H1’25 FINANCIALS Loans Getnet TPV Cards Spending • On track with our key strategic priorities to capture scale through €25bn €113bn €166bn global platforms, driving cost per transaction improvements +18% +15% +
Slide 15: Improving profitability and value creation
Improving profitability and value creation with EPS up 19% and TNAVps + Cash DPS increasing 16% RoTE post-AT1 EPS TNAVps + Cash DPS € cents € per share Cash DPS: €21.00 cents +0.9pp +19% +16% 16.0% 43.5 15.1% 5.71 36.7 5.50 4.94 H1'24 H1'25 H1'24 H1'25 Jun-24 Jun-25 Since 2021, including the full bu
Slide 16: Group review
Index 1 2 3 4 H1'25 Highlights Group review Final remarks Appendix Progress on our strategy 16
Slide 17: Strong revenue performance supporting net operating income and profit growth
Strong revenue performance supporting net operating income and profit growth Profit (€ mn) Group Group excl. Argentina +7% Group P&L Current Constant Current Constant € million H1'25 H1'24 % % % % +1% NII 22,716 23,457 -3 1 -1 4 3,431 Net fee income 6,684 6,477 3 9 0 6 3,250 3,265 3,402 3,207 Other
Slide 18: Revenue growth underpinned by customer activity
Revenue growth underpinned by customer activity across our businesses TOTAL REVENUE Constant € mn GROUP +5% • >95% of total revenue is customer related 15,891 15,688 • Solid revenue increase YoY with all businesses growing in a more 15,322 15,010 14,976 challenging context, which reflects the benefi
Slide 19: NII up both YoY and QoQ
NII up both YoY and QoQ, with solid performances across most global businesses on the back of effective balance sheet management NET INTEREST INCOME AND NIM NET INTEREST INCOME 2.97% 2.89% 2.92% NIM 2.79% 2.73% 2.78% • >80% of Group NII is from our Retail and Consumer businesses Quarterly • Excludin
Slide 20: Record H1 net fee income driven by global businesses
Record H1 net fee income driven by value added from our global businesses NET FEE INCOME Constant € mn +9% DETAIL BY BUSINESS 3,324 3,360 3,317 • Retail: 3,147 3,060 3,074 − Strong growth on the back a more targeted product offering and customer increase (+7mn) − Of note, Mexico, Argentina and the U
Slide 21: ONE Transformation is driving 5% net operating income growth
ONE Transformation is driving 5% net operating income growth GROUP RETAIL AND CONSUMER Revenue Retail and Consumer represent Efficiency 39.6% 40.0% Constant € mn 15,891 70% of the Group’s total costs 15,322 15,688 14,629 15,010 14,976 22,135 21,779 Total revenue +2% Constant € mn H1'24 H1'25 6,706 C
Slide 22: Solid credit quality with improvement across most businesses
Solid credit quality with improvement across most of our businesses LLPs AND CREDIT QUALITY CREDIT QUALITY CoR 1.20% 1.21% 1.18% 1.15% 1.14% 1.14% 12 month • Credit quality improvement, backed by low unemployment rates in most countries and easing monetary policies +6% • CoR down 7bps YoY, supported
Slide 23: CET1 performance and capital productivity
Strong organic capital generation, with profitable front-book growth at 22% RoTE CET1 PERFORMANCE AND CAPITAL PRODUCTIVITY MAXIMIZE CAPITAL PRODUCTIVITY CET1 Jun-25 or estimates % Front book pricing 12.9 +0.54 +0.01 13.0 RoRWA of new book 2.8% -0.29 -0.06 -0.08 Asset rotation and risk transfer activ
Slide 24: Value accretive capital redeployment is a top priority
Value accretive capital redeployment is a top priority: our recent inorganic transactions are consistent with our strict capital hierarchy criteria USE OF CAPITAL PROCEEDS FROM POLAND DISPOSAL AT 3X INITIAL INVESTMENT CET1 % c.+100bps Improved our SBB target: at least €10bn in share buybacks for 202
Slide 25: Final remarks
Index 1 2 3 4 H1'25 Highlights Group review Final remarks Appendix Progress on our strategy 25
Slide 26: Another record quarter that keeps us on track to meet our 2025 targets
Another record quarter that keeps us on track to meet our 2025 targets 2025 targets H1’25 Revenue c.€62bn €31.0bn ✓ Revenue and costs on track Mid-high single +9% on the back of our consistent execution Fees digit growth in constant euros, YoY ✓ of ONE Transformation Down vs. 2024 -0.4% Cost base in
Slide 27: Investor Day February 2026, London
INVESTOR DAY 25 FEBRUARY 2026 LONDON 27
Slide 28: Appendix
Index 1 2 3 4 H1'25 Highlights Group review Final remarks Appendix Progress on our strategy 28
Slide 29: Appendix index
Appendix 2025 Investor Day targets summary Group P&L QoQ and excluding Argentina CET1 performance YTD Detail by global business and country Reconciliation of underlying results to statutory results Glossary and additional notes 29
Slide 30: ONE Transformation is driving double-digit growth in value creation
ONE Transformation is driving double-digit growth in value creation 2022 2023 2024 H1'25 2025 ID targets New 2025 targets RoTE post-AT1 (%) - - 15.5 16.0 - c.16.5% RoTE pre-AT1 (%) 13.4 15.1 16.3 16.7 15-17% post-AT1 Profitability >17% pre-AT1 Payout (Cash + SBB)¹ (%) 40 50 50 50 50 EPS growth (%) 2
Slide 31: Appendix index
Appendix 2025 Investor Day targets summary Group P&L QoQ and excluding Argentina CET1 performance YTD Detail by global business and country Reconciliation of underlying results to statutory results Glossary and additional notes 31
Slide 32: Group P&L QoQ variations and excluding Argentina
Group P&L QoQ variations and excluding Argentina Group quarterly performance excluding Argentina Constant €mn Q2’25 vs. Q1’25 +2% Group Group excl. Argentina 14,844 14,818 15,047 P&L Current Constant Current Constant 14,073 € million % % % % Revenue NII -0 2 -1 2 +2% 10,400 10,787 10,803 10,974 Net
Slide 33: Appendix index
Appendix 2025 Investor Day targets summary Group P&L QoQ and excluding Argentina CET1 performance YTD Detail by global business and country Reconciliation of underlying results to statutory results Glossary and additional notes 33
Slide 34: CET1 YTD performance
CET1 YTD performance CET1 % +1.08 12.8 +0.07 13.0 -0.59 -0.20 -0.14 Dec-24 Att. Profit Capital Net organic Regulatory & Markets & Jun-25 1 distribution RWAs Models others Note: Dec-24 ratio on a fully-loaded basis (as published in the Q4 2024 Financial Report), excluding the transitory treatment of
Slide 35: Appendix index
Appendix 2025 Investor Day targets summary Group P&L QoQ and excluding Argentina CET1 performance YTD Detail by global business and country Reconciliation of underlying results to statutory results Glossary and additional notes 35
Slide 36: Detail by global business
Detail by global business 36
Slide 37: Retail & Commercial Banking
Retail & Commercial Banking KEY DATA HIGHLIGHTS Loans Deposits Mutual funds • ONE Transformation continued to deliver solid results reflected in growth €599bn €643bn €105bn in fees (+8%) and customer funds (+5% YoY), the improvement in -1% +3% +18% the cost to serve (-2% YoY) and higher profitabilit
Slide 38: Retail Spain and UK
RETAIL SPAIN RETAIL UK Loans Deposits Mutual funds Loans Deposits Mutual funds €159bn €224bn €47bn €223bn €206bn €6bn -2% +4% +14% -2% -1% -2% Yield on loans Cost of deposits Efficiency Yield on loans Cost of deposits Efficiency 3.69% 0.51% 32.0% 4.13% 1.93% 54.1% -41bps -16bps +0.7pp +27bps -23bps
Slide 39: Retail Mexico and Brazil
RETAIL MEXICO RETAIL BRAZIL Loans Deposits Mutual funds Loans Deposits Mutual funds €31bn €35bn €14bn €53bn €55bn €20bn +5% +2% +25% -6% +7% +10% Yield on loans Cost of deposits Efficiency Yield on loans Cost of deposits Efficiency 12.85% 3.90% 44.0% 16.89% 8.63% 40.6% -93bps -129bps -0.1pp +54bps +
Slide 40: Digital Consumer Bank
Digital Consumer Bank KEY DATA HIGHLIGHTS New lending Loans Deposits • Progressing in our priority to become the preferred choice of our partners and end customers, while being the most cost competitive player €41bn €211bn €130bn -10% +2% +10% • Loans rose 2%, driven by auto lending in Europe and La
Slide 41: DCB Europe and DCB US
DCB Europe DCB US Loans Deposits Mutual funds Loans Deposits Mutual funds €142bn €84bn €5bn €48bn €46bn €4bn +3% +10% +15% -7% +11% +18% Yield on loans Cost of deposits Efficiency Yield on loans Cost of deposits Efficiency 5.79% 2.03% 46.9% 12.00% 2.15% 41.6% +8bps -25bps +0.7pp +54bps +8bps +0.5pp
Slide 42: Corporate & Investment Banking
Corporate & Investment Banking KEY DATA HIGHLIGHTS Loans Deposits • Good progress in our strategy focused on fees and capital-light business through our GM and US BBO initiatives, supporting an enhanced value €135bn €125bn proposition and higher profitability while we maintain a leading position in
Slide 43: Wealth Management & Insurance
Wealth Management & Insurance KEY DATA HIGHLIGHTS AuMs Net new money (PB) Net sales (SAM) €514bn €10.6bn €4.9bn • We continue to build the best wealth and insurance manager in Europe +11% 7% of volumes1 4% of volumes1 and the Americas, leveraging our leading global private banking platform and our b
Slide 44: Payments: PagoNxt and Cards
Payments Cards Getnet TPV Getnet number of transactions Spending Average balance €113bn €166bn €23bn +15% +7% +9% +17% Underlying P&L* Q2'25 % Q1'25 H1'25 H1'24 % H1'24 % H1'24¹ EBITDA margin Underlying P&L* Q2'25 % Q1'25 H1'25 % H1'24 % H1'24¹ NII 42 14.5 80 62 45.1 29.4 NII 683 9.1 1,330 20.4 7.3
Slide 45: Corporate Centre
Corporate Centre P&L HIGHLIGHTS Underlying P&L* H1'25 H1'24 • NII affected by lower interest rates NII -232 -100 • Losses on financial transactions improved, due to a lower impact Gains / losses on financial transactions -143 -284 from foreign currency hedges • Costs impacted by higher IT expenses O
Slide 46: Detail by country
Detail by country 46
Slide 47: Spain and UK
SPAIN UK Loans Deposits Mutual funds Loans Deposits Mutual funds €232bn €306bn €99bn €229bn €216bn €8bn -1% +3% +15% -2% -2% 0% Efficiency CoR RoTE post-AT1 Efficiency CoR RoTE post-AT1 34.0% 0.47% 25.3% 54.0% 0.05% 8.9% -0.0pp -9bps +5.7pp -3.7pp -4bps -1.4pp Underlying P&L* Q2'25 % Q1'25 H1'25 % H
Slide 48: Portugal and Poland
PORTUGAL POLAND Loans Deposits Mutual funds Loans Deposits Mutual funds €40bn €40bn €5bn €40bn €52bn €7bn +5% +5% +16% +6% +10% +21% Efficiency CoR RoTE post-AT1 Efficiency CoR RoTE post-AT1 27.1% 0.00% 31.1% 27.8% 0.86% 22.5% +3.7pp -12bps +2.6pp +0.5pp -95bps +3.8pp Underlying P&L* Q2'25 % Q1'25 H
Slide 49: US and Mexico
US MEXICO Loans Deposits Mutual funds Loans Deposits Mutual funds €106bn €83bn €14bn €44bn €41bn €21bn -1% +3% +16% +6% +4% +22% Efficiency CoR RoTE post-AT1 Efficiency CoR RoTE post-AT1 49.5% 1.69% 11.0% 41.4% 2.53% 21.0% -1.0pp -37bps +2.3pp -0.0pp -17bps +2.3pp Underlying P&L* Q2'25 % Q1'25 H1'25
Slide 50: Brazil and Chile
BRAZIL CHILE Loans Deposits Mutual funds Loans Deposits Mutual funds €89bn €79bn €51bn €39bn €27bn €12bn -2% -0% +10% +1% +2% +20% Efficiency CoR RoTE post-AT1 Efficiency CoR RoTE post-AT1 32.7% 4.71% 14.2% 34.3% 1.31% 19.5% +0.2pp -6bps -0.9pp -4.9pp +34bps +6.5pp Underlying P&L* Q2'25 % Q1'25 H1'2
Slide 51: Argentina and Argentine Peso
ARGENTINA ARGENTINE PESO Loans Deposits Mutual funds • In Q2 2024, given a significant divergence between the official exchange rate and inflation, we decided to start using an alternative €9bn €11bn €6bn exchange rate +67% +107% +101% – This exchange rate was modelled by our Economic Research Team
Slide 52: Appendix index
Appendix 2025 Investor Day targets summary Group P&L QoQ and excluding Argentina CET1 performance YTD Detail by global business and country Reconciliation of underlying results to statutory results Glossary and additional notes 52
Slide 53: Reconciliation of underlying results to statutory results
Reconciliation of underlying results to statutory results EUR mn January-June 2025 January-June 2024 Statutory Adjustments related to Other Underlying Statutory Adjustments related to Other Underlying results the Poland disposal adjustments results results the Poland disposal adjustments results Net
Slide 54: Appendix index
Appendix 2025 Investor Day targets summary Group P&L QoQ and excluding Argentina CET1 performance YTD Detail by global business and country Reconciliation of underlying results to statutory results Glossary and additional notes 54
Slide 55: Glossary - Acronyms
Glossary - Acronyms • A2A: account-to- account • GFT: Gains on financial transactions • pp: Percentage points • AM: Asset management • ID: Investor Day • Ps: Per share • AuMs: Assets under Management • IFRS 5: International Financial Reporting • QoQ: Quarter-on-Quarter • bn: Billion Standard 5, on n
Slide 56: Glossary - Definitions
Glossary - Definitions PROFITABILITY AND EFFICIENCY • RoTE (Return on tangible equity): Profit attributable to the parent (annualized)1/ Average stockholders' equity2 (excl. minority interests) - intangible assets • RoTE (post-AT1): Profit attributable to the parent minus AT1 costs (annualized)1 / A
Slide 57: Additional notes
Additional notes (1) As announced on 5 February 2025, the shareholder remuneration policy that the board intends to apply for the 2025 results consists of a total shareholder remuneration of approximately 50% of the Group reported profit (excluding non-cash, non-capital ratios impact items), to be d
Slide 58: 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: