Banco Santander, S.a. · BME:SAN
Banco Santander — H1 2026 Earnings Presentation
63 slides from Banco Santander's earnings presentation, Jul 22, 2026
Slide 1: H1'26 Earnings Presentation
H1’26 Earnings Presentation 22 July 2026
Slide 2: Important information
Important information Non-IFRS and alternative performance measures Banco Santander, S.A. (“Santander”) cautions that this presentation may contain financial information prepared according to International Financial Reporting Standards (IFRS) and taken from our consolidated financial statements, as
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; • reputational risk and potential adverse reactions of stakeholders, including adverse effects on th
Slide 4: Important information
Important information Forward looking statements are based on current expectations and future estimates about Santander’s and third-parties’ operations and businesses and address matters that are uncertain to varying degrees, including, but not limited to developing standards that may change in the
Slide 5: Index
Index 1 2 3 4 H1’26 Highlights Group review Final remarks Appendix Progress on our strategy
Slide 6: Record H1 profit, with all global businesses contributing to our 2026 targets
Record H1 profit, with all global businesses contributing to our 2026 targets Q2'26 Und. profit H1'26 Und. profit Another record quarterly profit, backed by 12 million new customers YoY and good activity levels €3.8bn €7.3bn +17% +15% Efficiency Underlying RoTE Accelerating operating performance and
Slide 7: Higher revenue and lower costs are driving double-digit net operating income and profit growth
Higher revenue and lower costs are driving double-digit net operating income and profit growth Ex. TSB Group P&L Current Constant Current Constant € million H1'26 H1'25 % % % % NII 22,711 21,237 7 6 6 5 Net fee income 6,851 6,311 9 7 8 7 Other income 1,285 1,418 -9 -9 -9 -9 Total revenue 30,847 28,9
Slide 8: Our unique business model, disciplined capital allocation, ONE Transformation and network businesses are driving profitable growth
Our unique business model, disciplined capital allocation, ONE Transformation and network businesses are driving profitable growth and value creation Customer growth Revenue +5% Increasing underlying +0.7pp Scale up YoY RoTE YoY Every year1 Customer focus ONE Transformation Costs -2% Higher +19% Div
Slide 9: More active customers, deeper relationships and structural cost efficiencies make profitability improvements sustainable
More active customers, deeper relationships and structural cost efficiencies make profitability improvements sustainable over time Active customers Fees per active customer € constant2 106mn 130 +6mn +3% c.125mn in 2028 Customers c.135 in 2028 182mn Revenue Costs +12mn Cost per active customer € con
Slide 10: Consistent execution of ONE Transformation, AI at scale and network businesses delivering structural efficiency
Consistent execution of ONE Transformation, targeted deployment of AI at scale and our three network businesses are delivering structural efficiency improvements Efficiency ratio ONE AI Global Tech Network Announced Transformation businesses bolt-ons 45.3% c.-3pp c.-1pp c.-2pp c.-1pp c.-2pp c.36% 20
Slide 11: Double-digit profit growth is supported by our global businesses
Double-digit profit growth is supported by our 5 global businesses Underlying FY’28 Revenue Underlying H1’26 (€ bn) Efficiency profit RoTE underlying (€ bn) RoTE target 17.1 40.5% 4.1 17.1% Retail +0.8pp >21% +4% -2.9pp +12% PBT ex. Motor Finance1 Operating profitability 6.5 41.6% Openbank +4% -2.9p
Slide 12: Retail
Retail More customers and deeper relationships through an improved and digitally-led product offering, supporting double-digit profit growth H1’26 execution H1’26 performance ONE Transformation progressing at speed driven by product digitalization, with digital sales +21% YoY; Loans Deposits CoR cus
Slide 13: Retail UK: TSB accelerates execution of our strategy in the UK
Retail UK TSB accelerates execution of our strategy in the UK, adding scale, high-quality deposits and low-risk mortgages, with at least £400mn of cost synergies TSB contribution H1’26 financials Strengthens our UK franchise, increasing scale in a core Loans Deposits San UK CoR market and positionin
Slide 14: Openbank
Openbank Improved value proposition, stronger customer momentum and disciplined execution, leading to 15% underlying PBT growth H1’26 execution H1’26 performance Single legal entity1 in Europe, supporting business simplification, cross-selling and AI led transformation Loans Deposits CoR Loans up, d
Slide 15: CIB
CIB Better efficiency and profitability driving 17% profit growth on the back of client activity H1’26 execution H1’26 performance Solid execution of our strategy focused on disciplined capital allocation, driving RoTE up to 20%, while we Loans Deposits CoR maintain a leading position in efficiency
Slide 16: Wealth
Wealth High-teen profit growth, with fees up 11% backed by strong client inflows and our focus on value-added activities H1’26 execution H1’26 performance Increased focus on value-added investment solutions and services (e.g. UHNW and portfolio advisory) AuMs CAL (PB) Gross written premiums Insuranc
Slide 17: Payments
Payments Global platforms generating value in scope and scale, driving revenue growth and profitability improvements H1’26 execution H1’26 performance On track with our key strategic priorities, driving strong cost per transaction improvements. First agentic payments use case launched in Q2 Getnet G
Slide 18: Strong organic capital build with TNAV per share + cash DPS up 19%
Strong organic capital build while accelerating profitability and value creation, with TNAV per share + cash DPS up 19% CET1 Underlying RoTE TNAVps + cash DPS % € per share Cash DPS: €24.0 cents +0,6pp +0,7pp +19% 15,6% 6,56 13,5 +0,56 +0,24 14,0 14,9% -0,24 5,50 6,32 H1'25 H1'26 Dec-25 Net organic
Slide 19: Index
Index 1 2 3 4 H1’26 Highlights Group review Final remarks Appendix Progress on our strategy
Slide 20: Higher revenue and lower costs are driving double-digit net operating income and profit growth
Higher revenue and lower costs are driving double-digit net operating income and profit growth Group P&L Current Constant € million H1'26 H1'25 % % Underlying profit € mn NII 22,711 21,237 7 6 Net fee income 6,851 6,311 9 7 +17% +6% Other income 1,285 1,418 -9 -9 3,768 Total revenue 30,847 28,966 6
Slide 21: Revenue growth underpinned by more customers and deeper relationships
Revenue growth underpinned by more customers and deeper relationships across our businesses Total revenue Constant € mn +6% Group • >95% of total revenue is customer related 15,333 15,237 15,610 14,437 14,710 14,646 • Solid revenue growth YoY, both in NII and fees, with all businesses increasing, re
Slide 22: Solid NII performance across most global businesses
Solid NII performance across most global businesses driven by higher activity levels and our active balance sheet management NIM Quarterly 2.65% 2.71% 2.61% 2.68% 2.67% 2.71% Margins • H1’26 NIM improved slightly YoY: – Retail up 3bps, improving mainly in Argentina, Mexico and Spain NII +7% – Strong
Slide 23: Strong net fee income fuelled by structural value added from global businesses
Strong net fee income fuelled by structural value added from our global businesses Net fee income Constant € mn Detail by business +8% • Retail: – Good commercial dynamics and customer growth (+10mn YoY), supporting 3,532 3,472 widespread increases across our footprint, particularly in transactional
Slide 24: ONE Transformation delivered 1% cost decline and 11% net operating income growth
ONE Transformation delivered 1% cost decline and 11% net operating income growth GROUP Revenue +6% Costs Constant € mn 15,333 15,237 15,610 • Costs declined YoY, -5% in real terms, with efficiency improving 3pp 14,437 14,710 14,646 – Retail down 5% ex. TSB, with outstanding performances across our f
Slide 25: Group asset quality improving excluding Argentina
Group asset quality improving excluding Argentina CoR 1.12% 1.13% 1.13% 1.14% 1.14% 1.15% Credit quality 12 months • LLPs and CoR affected by sector-wide trends in Argentina. Excluding Argentina: LLPs – LLPs broadly stable YoY and CoR improved 2bps to 1.07%, reflecting our active risk management and
Slide 26: Solid capital generation, with profitable front-book growth at 21% RoTE
Solid capital generation, with profitable front-book growth at 21% RoTE +56bps net organic CET1 ratio % generation in H1’26 Maximize capital productivity +27bps net organic generation H1’26 or latest estimates 14,6% +0,61 +0,04 ex. TSB Front book pricing 14,4 -0,33 -0,01 14,0 RoTE of new book 21% -0
Slide 27: Index
Index 1 2 3 4 H1’26 Highlights Group review Final remarks Appendix Progress on our strategy
Slide 28: Record H1 profit and on track to meet all our 2026 targets
Record H1 profit and on track to meet all our 2026 targets H1’26 delivery 2026 targets Revenue Mid-single Revenue and costs on track growth +5% digit ex. TSB on the back of our consistent execution of in constant euros ONE Transformation Down Costs -2% in constant euros ex. TSB Record quarterly prof
Slide 29: Our Financial North Star
Our Financial North Star 2026 – 28 targets Strength Profitable growth CET1 Profit RoTE c.13% >€20bn >20% 12-13% operating range TNAVps+DPS Excess >13% to be returned Accelerating to by 2028 at the end of the plan High teens by 2028 & Shareholder remuneration EPS Reinvesting annual growth Payout Cash
Slide 30: Index
Index 1 2 3 4 H1’26 Highlights Group review Final remarks Appendix Progress on our strategy
Slide 31: Appendix
Appendix 2028 Investor Day targets summary Group P&L QoQ variations including and excluding TSB Detail by global business Detail by country Balance sheet and capital management Reconciliation of underlying results to statutory results Glossary and additional notes
Slide 32: We are well positioned to deliver on our 2028 Investor Day targets
We are well positioned to deliver on our 2028 Investor Day targets 2025 H1'26 2028 ID targets Underlying profit (€ bn) 13.2 7.3 >€20bn Underlying RoTE (%) 15.2 15.6 >20% Profitability Underlying EPS (%) 17 20 DD annual growth Payout (Cash + SBB)¹ (%) 50 50 50 Total customers (mn) 174 182 >210mn Acti
Slide 33: Appendix
Appendix 2028 Investor Day targets summary Group P&L QoQ variations including and excluding TSB Detail by global business Detail by country Balance sheet and capital management Reconciliation of underlying results to statutory results Glossary and additional notes
Slide 34: Group quarterly performance excluding TSB
Group P&L QoQ variations including and excluding TSB Group quarterly performance excluding TSB Constant € mn 3% 11,405 10,997 11,092 10,818 Q2'26 vs. Q1’26 Ex. TSB NII 10,541 10,634 Group P&L Current Constant Current Constant +2% € million % % % % 3,170 3,209 3,237 3,532 3,379 3,457 NII 6 5 4 3 Fees
Slide 35: Appendix
Appendix 2028 Investor Day targets summary Group P&L QoQ variations including and excluding TSB Detail by global business Detail by country Balance sheet and capital management Reconciliation of underlying results to statutory results Glossary and additional notes
Slide 36: Retail & Commercial Banking
Retail & Commercial Banking KEY DATA HIGHLIGHTS Loans Deposits Mutual funds • ONE Transformation continued to deliver tangible results, reflected in fee growth, a double-digit increase in customer funds, cost to serve €655bn €687bn €124bn improvement (-6%) and higher profitability +9% +2% +13% +6% +
Slide 37: Retail Spain and Retail UK
RETAIL SPAIN RETAIL UK Loans Deposits Mutual funds Loans Deposits Mutual funds €161bn €238bn €55bn €275bn €259bn €8bn +4% +6% +1% +6% +17% +22% ex. TSB +26% ex. TSB +31% Yield on loans Cost of deposits Efficiency Yield on loans Cost of deposits Efficiency 3.44% 0.44% 31.3% 4.18% 1.93% 53.7% -28bps -
Slide 38: Retail Mexico and Retail Brazil
RETAIL MEXICO RETAIL BRAZIL Loans Deposits Mutual funds Loans Deposits Mutual funds €39bn €41bn €17bn €70bn €67bn €27bn +1% +5% +11% +3% +12% +25% Yield on loans Cost of deposits Efficiency Yield on loans Cost of deposits Efficiency 13.29% 2.90% 40.1% 16.16% 9.38% 44.0% -140bps -100bps -2.8pp -9bps
Slide 39: Openbank
Openbank KEY DATA HIGHLIGHTS Loans Deposits New lending • We aim to become a leading digital bank that combines advanced technology with a personal and human touch, placing customers at the heart of our €220bn €136bn €44bn management and maximizing profitability and shareholder value +3% +3% +8% • L
Slide 40: Openbank Europe and Openbank US
OPENBANK EUROPE OPENBANK US Loans Deposits Mutual funds Loans Deposits Mutual funds €146bn €83bn €6bn €50bn €51bn €4bn +2% -2% +20% -0% +9% +11% Yield on loans Cost of deposits Efficiency Yield on loans Cost of deposits Efficiency 5.74% 1.63% 45.8% 11.98% 2.20% 41.9% -4bps -40bps -6.2pp -1bps +5bps
Slide 41: Corporate & Investment Banking
Corporate & Investment Banking KEY DATA HIGHLIGHTS • Solid execution of our strategy, driving RoTE up to 20%, maintaining a Loans Deposits leading position in efficiency €162bn €130bn • Good activity levels reflecting the benefits of our growth initiatives and the +22% +4% resilience of our diversif
Slide 42: Wealth Management & Insurance
Wealth Management & Insurance KEY DATA HIGHLIGHTS Net new money (PB) Gross written Net sales (AM) premiums • We continue to build the best wealth and insurance manager in Europe €11.0bn €6.6bn €6.2bn and the Americas, supported by our leading global private banking platform 6% of volumes¹ 5% of volu
Slide 43: Payment Solutions
Payment Solutions KEY DATA HIGHLIGHTS • Payment Solutions is positioned as our payments platform business, Getnet – TPV Getnet Platforms – # transactions structured around three business lines: €129bn 9bn – Getnet, our acquiring business +10% 5x – Getnet Platforms, consisting of our A2A platform and
Slide 44: Corporate Centre
Corporate Centre P&L HIGHLIGHTS • NII affected by lower interest rates Underlying P&L (€ mn) H1'26 H1'25 • Greater loss on financialtransactions due to a higher impact from foreign NII -338 -232 currency hedges Gains / losses on financial • Other operating income improved on the back of higher resul
Slide 45: Appendix
Appendix 2028 Investor Day targets summary Group P&L QoQ variations including and excluding TSB Detail by global business Detail by country Balance sheet and capital management Reconciliation of underlying results to statutory results Glossary and additional notes
Slide 46: Spain and UK
SPAIN UK Loans Deposits Mutual funds Loans Deposits Mutual funds €251bn €321bn €117bn €277bn €267bn €8bn +8% +3% +4% +5% +18% +21% ex. TSB +24% ex. TSB +6% Efficiency CoR RoTE Efficiency CoR RoTE 33.6% 0.41% 26.2% 53.2% 0.10% 10.7% -2.4pp -6bps +4.8pp -7.7pp +6bps +1.8pp Ex. TSB Ex. TSB Underlying P
Slide 47: Portugal and US
PORTUGAL US Loans Deposits Mutual funds Loans Deposits Mutual funds €43bn €42bn €6bn €116bn €86bn €17bn +7% +6% +12% +6% +1% +18% Efficiency CoR RoTE Efficiency CoR RoTE 28.3% 0.05% 29.7% 45.8% 1.47% 13.2% +1.3pp +5bps -1.4pp -4.3pp -20bps +2.2pp Underlying P&L (€ mn) Q2'26 % Q1'26 H1'26 % H1'25 Und
Slide 48: Mexico and Brazil
MEXICO BRAZIL Loans Deposits Mutual funds Loans Deposits Mutual funds €53bn €48bn €25bn €100bn €93bn €60bn +8% +4% +9% +3% +8% +7% Efficiency CoR RoTE Efficiency CoR RoTE 40.7% 2.74% 20.7% 40.5% 4.14% 14.5% -2.8pp +21bps -0.3pp +1.4pp -5bps +0.3pp Underlying P&L (€ mn) Q2'26 % Q1'26 H1'26 % H1'25 %
Slide 49: Chile and Argentina
CHILE ARGENTINA Loans Deposits Mutual funds Loans Deposits Mutual funds €42bn €30bn €14bn €10bn €12bn €9bn +5% +10% +12% +10% +5% +35% Efficiency CoR RoTE Efficiency CoR RoTE 29.7% 1.28% 22.0% 38.2% 11.12% 13.9% -4.9pp -3bps +2.5pp -7.2pp +603bps -7.9pp Underlying P&L (€ mn) Q2'26 % Q1'26 H1'26 % H1
Slide 50: Appendix
Appendix 2028 Investor Day targets summary Group P&L QoQ variations including and excluding TSB Detail by global business Detail by country Balance sheet and capital management Reconciliation of underlying results to statutory results Glossary and additional notes
Slide 51: Santander's capital levels amply exceed minimum regulatory requirements
Santander’s capital levels amply exceed minimum regulatory requirements SREP capital requirements and MDA* Jun-26 CET1 ratio of 14.0%, on track to meet 18.77% our 12.8-13%3 target for the year, at >16% the top end of our 12-13% operating Tier 2 range 3.09% +468bps 2.44% 14.09% 1.66% AT1 +401bps 1.50
Slide 52: Diversified bond portfolio represents just 8% of total assets
Diversified bond portfolio represents just 8% of total assets Bond portfolios %, Dec-25 Jun-26 €165bn Rest of the Group 3% Chile 6% Liquidity portfolio Brazil €43bn 9% Bond portfolio represents 8% of total assets Mexico Spain 9% €165bn 46% HTC&S duration: 1.9 years o/w HTC €130bn (79%) ALCO IRRBB Ma
Slide 53: Conservative and decentralized liquidity and funding model
Conservative and decentralized liquidity and funding model €30.0bn1 issued in public markets in H1’26 Very manageable maturity profile € bn, Jun-26 € bn, Jun-26 Covered 13.0 15.6 Bonds 1.5 9.0 9.3 5.5 14.0 1.6 0.6 2.7 Senior 16.2 26.7 12.8 9.9 0.7 7.2 4.5 7.4 6.8 0.2 0.7 1.7 3.1 8.1 Senior Non- 20.0
Slide 54: 2026 issuances against funding plan
2026 issuances against funding plan Execution of 2026 funding plan € bn, Jun-26 AT1 + Tier 2 SNP + Senior Covered Bonds TOTAL Plan Issued Plan Issued Plan Issued Plan Issued 1 2 1 2 Banco Santander, S.A. 1 - 2.5 1.7 13 - 15 12.4 0.5 - 2 3.0 14.5 - 19.5 17.1 UK - - 3 - 5.5 2.0 3-4 3.1 6 - 9.5 5.1 SHU
Slide 55: TLAC/MREL for the Resolution Group headed by Banco Santander, S.A.
TLAC/MREL for the Resolution Group headed by Banco Santander, S.A. TLAC MREL %, Jun-26(e) % and € bn, Jun-26(e) Requirement 42.4% Requirement CBR CBR 30.3% Buffer 6.8% Buffer 177.9 4.5% 27.8 Senior 7.8% 36.5 SNP 4.5% 1.2 Sub debt Req. 2 12.4 T2 15.2% 10.0 AT1 35.7% 31.2% Req. 3.3% 22.5% 8.3% 18.0% 1
Slide 56: Well-funded, diversified, prudently managed and highly liquid balance sheet
Well-funded, diversified, prudently managed and highly liquid balance sheet with a large contribution from customer deposits, reflected in solid liquidity ratios Liquidity balance sheet Liquidity Coverage Ratio Net Stable Funding € bn, Jun-26 1,659 1,659 (LCR) 1 Ratio (NSFR) 1 Jun-26 Mar-26 Mar-26 L
Slide 57: Appendix
Appendix 2028 Investor Day targets summary Group P&L QoQ variations including and excluding TSB Detail by global business Detail by country Balance sheet and capital management Reconciliation of underlying results to statutory results Glossary and additional notes
Slide 58: Reconciliation of underlying results to statutory results
Reconciliation of underlying results to statutory results EUR mn January-June 2026 January-June 2025 Underlying Statutory results Adjustments Statutory results Adjustments Underlying results results Net interest income 22,711 — 22,711 21,211 26 21,237 Net fee income 6,851 — 6,851 6,342 (31) 6,311 Ga
Slide 59: Appendix
Appendix 2028 Investor Day targets summary Group P&L QoQ variations including and excluding TSB Detail by global business Detail by country Balance sheet and capital management Reconciliation of underlying results to statutory results Glossary and additional notes
Slide 60: Glossary - Acronyms
Glossary - Acronyms • AI: Artificial Intelligence • EV: Electric vehicle • Payments: Payment Solutions • A2A: Account-to-account • FTE: Full-time equivalent • PB: Private Banking • AM: Asset Management • FX: Foreign exchange • PBT: Profit before tax • AT1: Additional Tier 1 • GB: Global Banking • pp
Slide 61: Glossary - Definitions
Glossary - Definitions PROFITABILITY AND EFFICIENCY • Underlying RoTE: Underlying profit attributable to the parent minus AT1 costs (annualized)1 / Average stockholders' equity2 (excl. minority interests) - intangible assets • RoRWA: Consolidated profit (annualized) / Average risk-weighted assets •
Slide 62: Additional notes
Additional notes (1) Phased-in ratio calculated in accordance with the transitory treatment of the CRR. • Capital distribution includes deductions for accrual of ordinary shareholder remuneration and AT1 costs. The board of directors intends to: i) apply an ordinary shareholder remuneration policy f
Slide 63: Thank you
Thank you AS