Banco Santander, S.a. · BME:SAN
Banco Santander — Q1 2019 Earnings Presentation
80 slides from Banco Santander's earnings presentation, Apr 30, 2019
Slide 1: Q1'19 Earnings Presentation
30 April 2019 Q1'19 Earnings Presentation Here to help you prosper
Slide 2: Important Information
Important Information Non-IFRS and alternative performance measures In addition to the financial information prepared in accordance with International Financial Reporting Standards (“IFRS”), this presentation contains certain financial measures that constitute alternative performance measures (“APMs
Slide 3: Important Information
Important Information No offer The information contained in this presentation is subject to, and must be read in conjunction with, all other publicly available information, including, where relevant any fuller disclosure document published by Santander. Any person at any time acquiring securities mu
Slide 4: Index
Index 1. Group performance Q1’19 2. Business areas performance Q1’19 3. Concluding remarks 4. Appendix 5. Glossary 4
Slide 5: Group performance Q1'19
Group performance Q1’19 01
Slide 6: Q1'19 Highlights
Q1’19 Highlights Commercial Our loyal and digital customer base continues to grow transformation Volumes expanded QoQ and YoY in loans, deposits and mutual funds Q1’19 attributable profit: EUR 1,840 mn, impacted by EUR -108 mn1 of net capital gains and provisions Underlying profit: EUR 1,948
Slide 7: Q1'19 Highlights
Q1’19 Highlights YoY changes Growth Profitability Strength Loyal: +10% Customer revenue: +4% CET12: 11.25% (+25 bps) Customers Results Solvency Digital: +24% Underlying att. profit: -2% TNAVps: 4.30 (+4%) Loans: +4% RoTE: 11.3% NPL: 3.62% (-40 bps) Profitability Credit Volumes Customer funds: +5% ra
Slide 8: Larger customer base and increased loyal and digital penetration
Our successful commercial and digital transformation plans are reflected in a larger customer base and increased loyal and digital penetration Active Loyal Digital 68.5 mn (+8%) 20.2 mn (+10%) 33.9 mn (+24%) Active customers Loyal customers Digital customers +2.2 mn 30% +1.8 mn active customers loya
Slide 9: Widespread YoY increase in loans and customer funds
General widespread YoY increase in loans and customer funds, boosted by developing markets Loans and advances to customers Customer funds EUR bn and YoY change in constant EUR EUR bn and YoY change in constant EUR 247 +1% 325 +4% 210 -3% 213 +1% 98 +7% 114 +11% 88 +11% 68 +6% 76 +10% 42 +5% 41 +8% 4
Slide 10: Q1'19 results impacted by one-offs and market environment
Q1’19 results impacted by one-offs, negative effects from the market environment, accounting impacts and the high inflation adjustment in Argentina Q1’19 vs Q4’18 (EUR million) Attributable profit (EUR million) 2,068 +9 2,077 1,840 -154 -83 -4% 2,054 1,990 2,068 1,840 1,698 Q4’18 FX Constant Net cap
Slide 11: Q1'19 P&L YoY performance
Q1’19 P&L YoY performance change vs Q1’18 Constant EUR EUR million Q1’19 % EUR Amount % Higher customer revenue due to Net interest income 8,682 +3 +375 +5 increased business volumes and spread management Net fee income 2,931 -1 +76 +3 Lower market revenues and Gains on fin. trans. and other 472 -36
Slide 12: Revenue YoY growth driven by stronger customer activity
Revenue YoY growth driven by stronger customer activity. QoQ drop due to non-business related impacts YoY growth due to higher volumes and spread management, with Net interest improvement in 7 of our 10 core markets income QoQ decrease as Q4’18 was favoured by TDR2 reclassification in 9,019 8,682 8,
Slide 13: Higher NII due to increased volumes and wider spreads
Higher NII due to increased business volumes and wider spreads in mature markets Organic growth Lower cost of deposits Mature +2% +3% +2 bps markets Q1’19 vs. Q1’18 +2% Loans Customer funds NIM Net interest income Organic growth Lower rates +5% Developing markets +13% +16% -26 bps +8% Loans Customer
Slide 14: Higher net fee income YoY driven by Retail Banking
Higher net fee income YoY driven by Retail Banking. SCIB and WM affected by markets Loyal customers Net fee income growth by market1 Individuals (mn) Companies (k) Developing Mature +10% +9% markets markets 18.5 1,708 -3% 16.9 1,566 +9% Mar-18 Mar-19 Mar-18 Mar-19 Activity growth1 Net fee income gro
Slide 15: Cost management reflects integration synergies
Cost management reflects integration synergies, maintaining a best-in-class cost-to-income, whilst enhancing customer experience Cost evolution Q1’19 vs. Q1’18, % Nominal In real terms1 Targeted cost management by geographies: -5.7 -7.4 -1.1 -2.0 Synergies from integrations in Europe 0.0 -1.8 Better
Slide 16: Continued credit quality improvement
Continued credit quality improvement on a YoY and QoQ basis % -7 bps 1.04 1.00 0.97 YoY cost of credit ratio improved, Cost of credit maintaining low levels in Q1’19 -40 bps 4.02 3.73 3.62 NPL ratio NPL ratio fell YoY in most units -2 pp 70 67 68 High level of allowances to total loans: Coverage str
Slide 17: Strong organic capital generation in Q1
Strong organic capital generation in Q1 (+20 bps). CET1 ratio impacted by accounting and regulatory effects (mainly IFRS 16 and TRIM) CET1 ratio % YoY Mar-19 change 11.30 +0.20 +0.02 +0.02 11.25 11.00 11.01 FL Total capital ratio 14.84% +41 bps -0.29 FL Tier 1 capital ratio 12.91% +42 bps Leverage r
Slide 18: Creating shareholder value whilst maintaining high profitability
Creating shareholder value whilst maintaining high profitability TNAV per share Profitability ratios EUR Underlying RoTE1 Underlying RoRWA1 4.30 12.1% 4.19 11.3% 1.59% 1.56% 4.12 Mar-18 Dec-18 Mar-19 2018 Q1'19 2018 Q1'19 (1) Statutory RoTE 2018 11.7% and Q1’19 11.2%. Statutory RoRWA 2018 1.55% and
Slide 19: Business areas performance Q1'19
Business areas performance Q1’19 02
Slide 20: Increased weight of the Americas in Group profit
Increased weight of the Americas in Group profit Q1’19 Underlying attributable profit1 Q1’19 Underlying attributable profit in core markets EUR mn and % change vs. Q1’18 in constant euros Americas Europe 52% 724 +15% 48% 403 -11% Other Latam, 325 +1% 2% Chile, 6% UK, 11% 271 -16% Spain; 206 +12% 16%
Slide 21: Brazil
Brazil: YoY double-digit profit growth, higher RoTE (21%) and better customer service and satisfaction. QoQ revenue impacted by seasonality, IFRS 16 and market related income P&L* Q1'19 % Q4'18 % Q1'18 NII 2,459 -2.1 6.2 +15% +35% Net fee income 931 -1.3 8.4 Loyal Digital customers customers Total i
Slide 22: Spain
Spain: revenue affected by lower ALCO sales, market related revenues and IFRS 16. Cost improvement reflects integration synergies. Stable credit quality P&L* Q1'19 % Q4'18 % Q1'18 NII 1,098 -4.5 6.0 +1% +25% Net fee income 614 -3.0 -8.7 Loyal Digital customers customers Total income 1,938 3.1 -6.1 O
Slide 23: SCF
SCF: leadership in Europe with best-in-class profitability (RoRWA: 2.3%) and efficiency. Historically low NPL ratio and cost of credit P&L* Q1'19 % Q4'18 % Q1'18 NII 941 0.0 3.3 19.4 mn 43.4% Net fee income 214 13.4 -0.1 Active Efficiency customers ratio Total income 1,167 -1.5 2.8 Operating expense
Slide 24: UK
UK: underlying results reflect competitive pressure on revenue, the current uncertain environment and higher technology and projects costs. Non-recurring restructuring charges in Q1’19 P&L* Q1'19 % Q4'18 % Q1'18 NII 1,001 -4.7 -4.2 Net fee income 243 -7.0 -0.9 +3% +8% Loyal Digital Total income 1,28
Slide 25: Other units: larger customer base, higher profits
Other units: larger customer base, higher profits and better credit quality Attributable profit RoTE Continued to strengthen our distribution model, reflected in an increase in customer base, volumes and profitability EUR 206 mn 20% +12% Double-digit profit growth due to higher customer revenue and
Slide 26: Other units: larger customer base and integration processes
Other units: larger customer base and integration processes Attributable profit RoTE Strong new lending, widespread market share gains EUR 135 mn 13% Profit growth thanks to ALCO sales, lower costs due to integration synergies +7% and LLPs release (strong improvement in NPL ratio: -252 bps YoY) YoY
Slide 27: Corporate Centre
Corporate Centre P&L* Q1'19 Q1'18 NII -284 -224 Greater loss in NII due to higher stock of issuances and IFRS 16 impact Gains/Losses on FT -79 12 Higher FX hedging cost reflected in results from financial transactions Operating expenses -119 -121 Operating expenses reflect two impacts: on one hand,
Slide 28: Concluding remarks
Concluding remarks 03
Slide 29: Main takeaways for the short-term
Main takeaways for the short-term In an challenging market, we have increased our customer base and volumes Q1’19 Solid underlying trends in the income statement: YoY growth in customer revenue, cost control and lower LLPs summary Strong organic capital generation and TNAVps increase 11.3% u
Slide 30: Voluntary offer to acquire Banco Santander Mexico shares
Voluntary offer to acquire all shares of Banco Santander Mexico not already held by the Santander Group (c. 25% of Santander Mexico's share capital) Attractive transaction for … as well as for Santander Mexico Santander Group shareholders … shareholders Rationale of the transaction Opportunity to mo
Slide 31: Crédit Agricole and Santander to join forces in custody
Crédit Agricole and Santander to join1 forces and create a major global player in custody and asset servicing The new entity EUR 3.3 trillion in assets under custody Rationale of the transaction will have EUR 1.8 trillion in assets under administration Transaction is consistent The transaction would
Slide 32: Progress towards medium-term goals
We are making progress towards our medium-term goals: Medium-term goals We are confident our RoTE1 FL CET1 strategy will drive further loyal 13-15% 11-12% Dividend customers growth Efficiency pay-out ratio while increasing EPS and TNAV per share 42-45% 40-50% Growth Profitability Strength (1) Underl
Slide 33: Appendix
Appendix 04
Slide 34: Appendix index
Appendix Other countries results Global business results Liquidity NPL and coverage ratios and cost of credit Quarterly income statements 34
Slide 35: Mexico
Mexico: continued to increase customer base, volumes and profitability. Double-digit profit growth due to higher customer revenue and lower cost of credit P&L* Q1'19 % Q4'18 % Q1'18 NII 766 0.8 11.8 +28% +57% Net fee income 204 8.7 3.3 Loyal Digital customers customers Total income 939 1.0 6.9 Opera
Slide 36: USA
USA: very positive quarter for Santander US, with strong business and profit growth. NII and LLP comparison impacted by reclassification of TDRs, mainly QoQ P&L* Q1'19 % Q4'18 % Q1'18 NII 1,407 -10.2 -1% 6.5 +3% +7% +13% Net fee income 234 7.4 1.0 Loyal Digital customers customers Total income 1,815
Slide 37: Chile
Chile: faster growth in core products. NII affected by flat inflation (UF). Better performance of costs and credit quality P&L* Q1'19 % Q4'18 % Q1'18 NII 440 -10.0 -8.0 +6% +6% Net fee income 103 5.5 -4.6 Loyal Digital customers customers Total income 600 -5.9 -4.1 Operating expenses -255 -3.6 1.0 L
Slide 38: Portugal
Portugal: Profit growth thanks to ALCO sales, lower costs due to integration synergies and LLP release (strong improvement in credit quality). Market share gains P&L* Q1'19 % Q4'18 % Q1'18 NII 216 2.1 -2.7 +7% +16% Net fee income 98 2.3 0.3 Loyal Digital customers customers Total income 357 7.1 4.8
Slide 39: Poland
Poland: YoY volume growth boosted by DBP integration (QoQ affected by liquidity and cost of deposits management). PBT increase QoQ and YoY absorbing higher BFG1 and Banking Tax1 P&L* Q1'19 % Q4'18 % Q1'18 NII 281 6.2 17.3 Net fee income 113 -1.0 4.0 +12% +14% Loyal Digital Total income 377 -3.1 16.6
Slide 40: Argentina
Argentina: Profit hit by high inflation adjustments and increased provisions. The partial disposal of our stake in Prisma generated a capital gain of EUR 150 mn P&L* Q1'19 % Q4'18 % Q1'18 NII 213 18.9 95.6 Net fee income 116 9.2 75.8 -1% +4% Total income 331 35.9 72.3 Loyal Digital customers custome
Slide 41: Other Latin American countries
Other Latin American countries URUGUAY PERU Attributable profit in constant EUR mn Attributable profit in constant EUR mn +21% +7% 36 30 17% 28% 9 RoTE 8 RoTE Q1'18 Q1'19 Q1'18 Q1'19 Focusing on loyalty, transactions and target segments Uruguay’s profit driven by higher customer revenues, with impro
Slide 42: Appendix index
Appendix Other countries results Global business results Liquidity NPL and coverage ratios and cost of credit Quarterly income statements 42
Slide 43: Retail Banking
Appendix Retail Banking: Continued focus on customer loyalty and digital transformation. We continued to launch new products and services that cover the needs of our customers P&L* Q1'19 % Q4'18 % Q1'18 NII 8,213 -3.2 3.9 Net fee income 2,303 0.9 4.9 Total income 10,768 -2.7 2.9 +10% +24% Loyal Digi
Slide 44: Corporate & Investment Banking
Appendix Corporate & Investment Banking: Profit remained stable YoY with good evolution of value- added businesses, offset by reduced activity in markets P&L* Q1'19 % Q4'18 % Q1'18 NII 644 -6.3 20.9 Net fee income 362 -3.2 -8.4 Gains or losses on financ. trans. 233 46.9 -27.6 +23% Total income 1,296
Slide 45: Wealth Management
Appendix Wealth Management: Continued to develop the strategic initiatives launched in our first year: development of Private Banking’s global and digital platform and strengthening SAM’s value proposition P&L* Q1'19 % Q4'18 % Q1'18 ACTIVITY NII 113 5.4 11.1 Constant EUR bn and % change YoY Net fee
Slide 46: Real Estate Activity Spain
Appendix Real Estate Activity Spain: Management continued to be aimed at reducing these assets, particularly loans and foreclosed assets Real estate exposure1 Net value EUR bn EUR bn Mar-19 Real estate assets 3.0 7.8 4.0 Foreclosed assets 2.3 3.8 Rental assets 0.7 RE non-performing loans (NPLs) 0.8
Slide 47: Appendix index
Appendix Other countries results Global business results Liquidity NPL and coverage ratios and cost of credit Quarterly income statements 47
Slide 48: Solid liquidity ratios with funding plans
Appendix Solid liquidity ratios with funding plans designed to adequately manage balance sheet structure and cover debt maturities Key liquidity ratios Funding plan - issuances Mar-19 Jan-Mar 19 Net loan-to-deposit ratio (LTD): 113% Group issuances2 EUR 6.6bn (~EUR 1bn TLAC-eligible) Deposits + M/LT
Slide 49: Appendix index
Appendix Other countries results Global business results Liquidity NPL and coverage ratios and cost of credit Quarterly income statements 49
Slide 50: Coverage ratio by stage
Appendix Coverage ratio by stage Exposure1 Coverage EUR bn Mar-19 Mar-19 Mar-18 Stage 1 870 0.5% 0.5% Stage 2 54 9.1% 8.6% Stage 3 36 42.4% 44.6% (1) Exposure subject to impairment expressed in EUR bn. Additionally, there are EUR 24 bn in customer loans not subject to impairment recorded at mark to
Slide 51: NPL ratio
Appendix NPL ratio % Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Continental Europe 5.81 5.68 5.57 5.25 5.17 Spain 6.27 6.24 6.23 6.19 6.19 Santander Consumer Finance 2.48 2.44 2.45 2.29 2.33 Poland 4.77 4.58 4.23 4.28 4.39 Portugal 8.29 7.55 7.43 5.94 5.77 United Kingdom 1.17 1.12 1.10 1.05 1.14 Latin Ameri
Slide 52: Coverage ratio
Appendix Coverage ratio % Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Continental Europe 56.8 55.2 54.4 52.2 52.1 Spain 51.1 49.0 47.7 45.0 44.1 Santander Consumer Finance 107.2 107.7 106.4 106.4 105.3 Poland 72.0 72.1 71.6 67.1 67.6 Portugal 53.9 52.7 53.4 50.5 50.7 United Kingdom 34.6 34.0 33.1 33.0 31.0 L
Slide 53: Non-performing loans and loan-loss allowances
Appendix Non-performing loans and loan-loss allowances. March 2019 Non-performing loans Loan-loss allowances 100%: EUR 35,590 million 100%: EUR 24,129 million Other, 5% Other, 3% US, 6% Argentina, 1% US, 16% Spain, 28% Spain, 42% Chile, 6% Mexico, 2% Argentina, 1% Chile, 5% Brazil, 13% Mexico, 4% SC
Slide 54: Cost of credit
Appendix Cost of credit % Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Continental Europe 0.32 0.34 0.37 0.36 0.36 Spain 0.29 0.31 0.35 0.33 0.34 Santander Consumer Finance 0.36 0.37 0.40 0.38 0.38 Poland 0.69 0.71 0.69 0.65 0.61 Portugal 0.08 0.10 0.03 0.09 0.03 United Kingdom 0.10 0.10 0.08 0.07 0.07 Latin
Slide 55: Appendix index
Appendix Other countries results Global business results Liquidity NPL and coverage ratios and cost of credit Quarterly income statements 55
Slide 56: Grupo Santander
Appendix Grupo Santander EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 NII + Net fee income 11,409 11,411 10,989 12,017 11,613 Total income 12,151 12,011 11,720 12,542 12,085 Operating expenses (5,764) (5,718) (5,361) (5,936) (5,758) Net operating income 6,387 6,293 6,359 6,606 6,327 Net loan-loss provi
Slide 57: Grupo Santander
Appendix Grupo Santander Constant EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 NII + Net fee income 11,162 11,368 11,571 11,917 11,613 Total income 11,898 11,950 12,354 12,450 12,085 Operating expenses (5,657) (5,686) (5,642) (5,845) (5,758) Net operating income 6,242 6,265 6,712 6,605 6,327 Net loan-l
Slide 58: Spain
Appendix Spain EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 NII + Net fee income 1,710 1,729 1,769 1,783 1,713 Total income 2,063 1,837 2,114 1,880 1,938 Operating expenses (1,145) (1,123) (1,103) (1,110) (1,079) Net operating income 918 714 1,012 770 858 Net loan-loss provisions (207) (196) (197) (129
Slide 59: Santander Consumer Finance
Appendix Santander Consumer Finance EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 NII + Net fee income 1,130 1,116 1,143 1,132 1,155 Total income 1,140 1,126 1,157 1,187 1,167 Operating expenses (509) (507) (475) (494) (507) Net operating income 631 619 682 693 660 Net loan-loss provisions (120) (69) (1
Slide 60: Santander Consumer Finance
Appendix Santander Consumer Finance Constant EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 NII + Net fee income 1,125 1,112 1,141 1,130 1,155 Total income 1,136 1,122 1,154 1,186 1,167 Operating expenses (507) (506) (474) (494) (507) Net operating income 629 617 680 692 660 Net loan-loss provisions (120
Slide 61: Poland
Appendix Poland EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 NII + Net fee income 359 355 354 380 395 Total income 333 398 367 390 377 Operating expenses (154) (162) (156) (165) (172) Net operating income 179 236 211 225 205 Net loan-loss provisions (46) (41) (33) (41) (43) Other (13) (34) (26) (61) (3
Slide 62: Poland
Appendix Poland PLN million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 NII + Net fee income 1,500 1,512 1,525 1,632 1,697 Total income 1,390 1,695 1,579 1,674 1,622 Operating expenses (642) (690) (672) (707) (741) Net operating income 748 1,005 907 967 881 Net loan-loss provisions (191) (175) (143) (177) (186) O
Slide 63: Portugal
Appendix Portugal EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 NII + Net fee income 320 305 303 307 314 Total income 341 346 323 334 357 Operating expenses (158) (165) (157) (162) (157) Net operating income 183 182 166 172 201 Net loan-loss provisions (8) (0) (11) (12) 13 Other (9) (22) 13 36 (20) Unde
Slide 64: United Kingdom
Appendix United Kingdom EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 NII + Net fee income 1,274 1,304 1,291 1,290 1,244 Total income 1,349 1,373 1,367 1,332 1,280 Operating expenses (764) (763) (730) (738) (783) Net operating income 586 610 637 593 497 Net loan-loss provisions (66) (37) (26) (44) (64)
Slide 65: United Kingdom
Appendix United Kingdom GBP million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 NII + Net fee income 1,125 1,142 1,152 1,144 1,085 Total income 1,192 1,203 1,220 1,181 1,117 Operating expenses (675) (669) (651) (655) (683) Net operating income 517 534 568 526 434 Net loan-loss provisions (58) (32) (23) (39) (56)
Slide 66: Brazil
Appendix Brazil EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 NII + Net fee income 3,403 3,296 3,153 3,404 3,390 Total income 3,445 3,323 3,180 3,396 3,411 Operating expenses (1,165) (1,095) (1,031) (1,191) (1,119) Net operating income 2,280 2,228 2,149 2,205 2,292 Net loan-loss provisions (822) (750) (
Slide 67: Brazil
Appendix Brazil BRL million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 NII + Net fee income 13,568 14,121 14,451 14,779 14,496 Total income 13,737 14,241 14,579 14,747 14,587 Operating expenses (4,644) (4,697) (4,736) (5,169) (4,786) Net operating income 9,093 9,544 9,843 9,579 9,800 Net loan-loss provisions (3,
Slide 68: Mexico
Appendix Mexico EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 NII + Net fee income 836 841 927 915 970 Total income 831 868 931 897 939 Operating expenses (340) (363) (384) (376) (395) Net operating income 491 505 547 521 544 Net loan-loss provisions (200) (189) (227) (215) (193) Other (3) (12) (5) 17 (
Slide 69: Mexico
Appendix Mexico MXN million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 NII + Net fee income 19,257 19,435 20,475 20,671 21,158 Total income 19,143 20,058 20,546 20,264 20,471 Operating expenses (7,832) (8,381) (8,467) (8,497) (8,612) Net operating income 11,310 11,678 12,079 11,767 11,859 Net loan-loss provision
Slide 70: Chile
Appendix Chile EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 NII + Net fee income 601 612 582 573 543 Total income 640 642 632 622 600 Operating expenses (258) (272) (257) (258) (255) Net operating income 382 370 375 364 345 Net loan-loss provisions (121) (115) (117) (120) (102) Other 22 32 19 31 37 Und
Slide 71: Chile
Appendix Chile CLP million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 NII + Net fee income 444,260 453,403 449,145 444,368 411,449 Total income 473,564 475,595 486,844 482,500 454,162 Operating expenses (190,863) (201,511) (198,000) (199,964) (192,782) Net operating income 282,700 274,084 288,844 282,536 261,380
Slide 72: Argentina
Appendix Argentina EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 NII + Net fee income 343 367 (12) 518 329 Total income 377 430 (70) 472 331 Operating expenses (218) (207) (0) (323) (202) Net operating income 159 223 (70) 149 129 Net loan-loss provisions (49) (75) (7) (99) (73) Other (17) (41) 4 9 (22)
Slide 73: Argentina
Appendix Argentina ARS million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 NII + Net fee income 8,293 10,046 12,292 13,530 15,602 Total income 9,117 11,729 11,492 11,557 15,704 Operating expenses (5,278) (5,707) (7,693) (8,516) (9,570) Net operating income 3,840 6,022 3,800 3,042 6,134 Net loan-loss provisions (1
Slide 74: United States
Appendix United States EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 NII + Net fee income 1,435 1,500 1,545 1,770 1,641 Total income 1,578 1,670 1,735 1,967 1,815 Operating expenses (735) (737) (748) (795) (774) Net operating income 843 932 987 1,172 1,040 Net loan-loss provisions (579) (445) (649) (945
Slide 75: United States
Appendix United States USD million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 NII + Net fee income 1,764 1,787 1,796 2,028 1,864 Total income 1,940 1,990 2,018 2,252 2,061 Operating expenses (904) (878) (868) (907) (879) Net operating income 1,036 1,112 1,149 1,345 1,181 Net loan-loss provisions (712) (528) (758
Slide 76: Corporate Centre
Appendix Corporate Centre EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 NII + Net fee income (233) (241) (265) (277) (295) Total income (227) (250) (257) (295) (384) Operating expenses (121) (122) (123) (128) (119) Net operating income (348) (372) (380) (423) (503) Net loan-loss provisions (37) (30) (28
Slide 77: Glossary
Glossary 05
Slide 78: Glossary - Acronyms
Glossary - Acronyms AFS: Available for sale P&L: Profit and loss AuM: Assets under Management PPP: Pre-provision profit bn: Billion QoQ: Quarter-on-Quarter CET1: Common equity tier 1 RE: Real Estate C&I: Commercial and Industrial Repos: Repurchase agreements CIB: Corporate & Investment Bank ROF: Gai
Slide 79: Glossary – definitions
Glossary – definitions PROFITABILITY AND EFFICIENCY RoTE: Return on tangible capital: Group attributable profit / average of: net equity (excluding minority interests) – intangible assets (including goodwill) RoRWA: Return on risk-weighted assets: consolidated profit / average risk-weighted assets E
Slide 80: 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: