Banco Santander, S.a. · BME:SAN
Banco Santander — Debt Investor Presentation (April 2025)
59 slides from Banco Santander's debt investor presentation, Apr 30, 2025
Slide 1: Fixed income investors presentation Q1 2025
Fixed income investors presentation Q1 2025
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 • potential losses from early loan repayment, collateral depreciation or counterparty risk; • political instability in Spain, the UK, other European countries, Latin America and the US; • legislative, regulatory or tax changes (including regulatory capital and liquidity require
Slide 4: Santander, a leading financial group
Q1'25 Highlights Santander, Total assets (€ bn) 1,845 a leading Customer loans (€ bn excluding reverse repos) 1,019 financial group Customer deposits + mutual funds (€ bn excluding repos) 1,219 Branches 7,910 Q1'25 Net operating income (pre-provision profit) (€ mn) 9,048 Q1'25 Attributable profit (€
Slide 5: Index
Index 1 2 3 4 5 6 7 8 Q1 2025 2025 Sant Santaander Capita pital Asset Liqu Liquidit idityy & Sust Susta ainabil inability ity Con onccludin ludingg Link Links, Summary Summary Business Busine ss Qualit Qua lityy Funding. unding. Rema Remarkrkss App Appendix endix Model & Rat Ratings ings and Stra St
Slide 6: Continuing strong operational performance driving profit growth
Q1 2025 Summary Continuing strong operational performance driving profit growth Group P&L Current Constant € million Q1'25 Q1'24 % % NII excluding Argentina: NII 11,378 11,983 -5 -2 +0% in current +4% in constant SANTANDER Net fee income 3,369 3,240 4 9 Other income 790 157 n.m. n.m. Total revenue e
Slide 7: ONE Transformation is driving further structural efficiency improvements
Q1 2025 Summary ONE Transformation is driving further structural efficiency improvements GROUP RETAIL AND CONSUMER 40.9% 40.2% Efficiency Revenue Retail and Consumer represent Constant € mn 16,106 15,537 70% of the Group’s total costs 11,129 14,828 15,216 15,186 10,885 Total revenue +2% Constant € m
Slide 8: Consistent execution of ONE Transformation driving revenue and costs ahead of plan
Q1 2025 Summary Consistent execution of ONE Transformation is driving both revenue and costs ahead of plan Global & Network Global Tech FY’22 ONE Transformation businesses1 capabilities & others Q1’25 45.8% -253bps -75bps -79bps 41.8% • Product simplification: 40% fewer • Wealth: collaboration fees
Slide 9: Solid credit quality with improvement across most of our businesses
Q1 2025 Summary Solid credit quality with improvement across most of our businesses LLPss AND CRED LLP CREDIT IT QU QUAL ALIT ITYY CRED EDIIT QUA QUALI LITTY CoR 1.20% 1.21% 1.18% 1.15% 1.14% 12 month • CoR improved YoY, improving in most of our businesses • Better credit quality YoY, backed by reco
Slide 10: Strong organic capital generation, CET1 at the top end of 12-13% range
Q1 2025 Summary Strong organic capital generation, CET1 at the top end of our 12-13% operating range Mar-25 CET1 RATIO PERFORMANCE CET1 % 12.8 +0.33 +0.12 12.9 Capital ratios -0.27 -0.08 Q1'24 Q1'25 Diff. Phased-in CET1 ratio 12.3% 12.9% 58bps Phased-in Total capital ratio 16.6% 17.2% 65bps Phased-i
Slide 11: Another record quarter that puts us on track to meet our 2025 targets
Q1 2025 Summary Another record quarter that puts us on track to meet our 2025 targets 2025 targets Q1’25 €15.5bn Revenue c.€62bn +1%YoY in euros ✓ 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 D
Slide 12: Index
Index 1 2 3 4 5 6 7 8 Q1 2025 Summary Santander Business Model Strategy Capital Asset Quality Liquidity Funding. Ratings Sustainability Concluding Remarks Links, Appendix and Glossary Q1 2025 Santander Capital Asset Liquidity & Sustainability Concluding Links, Summary Business Quality Funding. Remar
Slide 13: Group structure in 2025
Santander Business Model & Strategy Santander is managed according to primary and secondary segments PRI PRIMARY SE MARY SEGMENT GMENTS S (GL (GLOBAL BUSI OBAL BUSINES NESSES) SES) Group Retail Consumer CIB Wealth Payments structure in 2025 SECONDARY SEGMENTS Spain Portugal US Brazil Argentina UK Po
Slide 14: Our business model continues to deliver for all our stakeholders
Santander Business Model & Strategy Our business model continues to deliver for all our stakeholders 1. Customer focus 2. Scale 3. Diversification Building a digital bank Global and in-market Business, geographical and with branches scale balance sheet Contribution to Group revenue1 175 mn Q1’25 Wea
Slide 15: We maintain our geographic and business diversification in assets and liabilities
Santander Business Model & Strategy We maintain our geographic and business diversification both in assets and liabilities … LOANS AND ADVANCES TO CUSTOMERS CUSTOMER DEPOSITS (excluding reverse repos, Mar-25) (excluding repos, Mar-25) By product/business1 By product/business1 Other Product breakdown
Slide 16: Loans that remained steady despite changing interest rate dynamics
Santander Business Model & Strategy … with loans that remained steady despite changing interest rate dynamics… CUSTOMER LOANS CUSTOMER LOANS BY COUNTRY Mar-25, € bn and % change YoY in constant € Mar-25, € bn and % change YoY in constant € €1,019bn +1% Others 56 GROUP 1,019 +1 +11% CIB 142 +4% 229 0
Slide 17: A strong and diversified deposit base
Santander Business Model & Strategy … and a strong and diversified deposit base CUSTOMER DEPOSITS CUSTOMER DEPOSITS BY COUNTRY Mar-25, € bn and % change YoY in constant € Mar-25, € bn and % change YoY in constant € €976bn +3% GROUP 976 +3 Others 65 +5% 299 0 CIB 134 -4% 220 -5 Consumer 133 +12% 39 +
Slide 18: Index
Index 1 2 3 4 5 6 7 8 Q1 2025 Summary Santander Business Model Strategy Capital Asset Quality Liquidity Funding. Ratings Sustainability Concluding Remarks Links, Appendix and Glossary Q1 2025 Santander Capital Asset Liquidity & Sustainability Concluding Links, Summary Business Quality Funding. Remar
Slide 19: Enhanced capital strength: profitable organic generation, new front book at 22% RoTE
Capital Enhanced capital strength: profitable organic generation, with new front book at 22% RoTE MAXIMIZE CAPITAL VALUE GENERATION AND PRODUCTIVITY BY: PROFITABILITY Increase RWAs with EVA>0 Asset rotation Front book pricing and risk transfer EVA <0 portfolios EVA >0 portfolios activities 16% 13% 1
Slide 20: Global Asset Desk drives balance sheet mobilization
Capital Santander’s Global Asset Desk coordinates and drives balance sheet mobilization efforts across the Group, delivering significant risk transfer growth GLOBAL ASSET DESK We have established a distinctive origination capacity (i.e. identifying Unique origination new mobilization opportunities)
Slide 21: Capital levels amply exceed minimum regulatory requirements
Capital Santander’s capital levels amply exceed minimum regulatory requirements SREP CAPITAL REQUIREMENTS AND MDA* Mar-25 • CET1 ratio of 12.9%, at the top end of our 12-13% operating 17.24% range for 2025 >15% +333bps 2.82% T2 • The minimum CET1 to be 13.91% 2.40% +295bps 1.57% AT1 1.50% maintained
Slide 22: Strong fundamentals for AT1 bond holders
Capital Strong fundamentals for AT1 bond holders • Santander Group’s CET1 levels are well above the minimum loss absorption trigger of 5.125%: €49.4bn Distance to • The first line of defence is the Group’s strong pre-provision profitability providing a high capacity to absorb provisions trigger1 dur
Slide 23: AT1 issuances distributed by call date
Capital AT1 issuances distributed by call date BANCO SANTANDER, S.A. AT1 ISSUANCES OUTSTANDING AT Mar-25 Call date Nominal Next call Reset EUR mn Currency € mn Coupon Structure date Spread 2,463 2,500 Banco Santander S.A. EUR 1,500 4.38% PNC6 14-Jan-26 453.4 bps Banco Santander S.A. USD 963 4.75% PN
Slide 24: FX hedging policy on capital ratio and P&L
Capital FX hedging policy on capital ratio and P&L STABLE CAPITAL RATIO HEDGE OUR P&L POLICY Illustrative example: Strategic management of exposure to Hedged Group exchange rates in equity and dynamic Exposure CET1 management of the FX hedges related to the 12.9%1 units’ next 12 months results in eu
Slide 25: Diversified bond portfolio represents just 8% of total assets
Capital Diversified bond portfolio represents just 8% of total assets BOND PORTFOLIO %, Mar-25 Rest of the €152bn Chile Group 3% 6% Liquidity Brazil portfolio 9% €35bn Spain 31% • Bond portfolio represents 8% of total assets US 10% €152bn o/w HTC €96bn (63%) • HTC&S duration: 2.4 years ALCO IRRBB Me
Slide 26: Index
Index 1 2 3 4 5 6 7 8 Q1 2025 Summary Santander Business Model Strategy Capital Asset Quality Liquidity Funding. Ratings Sustainability Concluding Remarks Links, Appendix and Glossary Q1 2025 Santander Capital Asset Liquidity & Sustainability Concluding Links, Summary Business Quality Funding. Remar
Slide 27: Credit quality remains solid
Asset Quality Credit quality remains solid… CREDIT QUALITY RATIOS Q1'24 Q4'24 Q1'25 Q1'24 Q4'24 Q1'25 Cost of NPL ratio 3.10% 3.05% 2.99% 1.20% 1.15% 1.14% risk1 3.73% 3.32% 3.21% 3.16% 3.08% 3.14% 3.10% 3.02% 3.06% 3.05% 2.99% 1.28% 1.18% 1.20% 1.21% 1.18% 1.15% 1.14% 1.00% 1.00% 0.99% 0.77% 2018 2
Slide 28: At the Group and country level
Asset Quality … at the Group and country level NPL RATIOS COST OF RISK1 % % Q1 2024 Q4 2024 Q1 2025 Q1 2024 Q4 2024 Q1 2025 Retail 3.21 3.18 3.12 Retail 1.03 0.92 0.91 Consumer 4.86 5.07 5.09 Consumer 2.12 2.16 2.14 CIB 1.19 0.83 0.75 CIB 0.14 0.09 0.08 Wealth 0.93 0.93 0.98 Wealth -0.06 0.19 0.20 P
Slide 29: Distribution of credit impaired loans in line with total portfolio
Asset Quality Distribution of credit impaired loans in line with total portfolio CREDIT IMPAIRED LOANS LOAN-LOSS ALLOWANCES Mar-25, % of operating areas Mar-25, % of operating areas Payments, Payments, Wealth, 0.7% 4.3% 8.2% Wealth, 0.7% CIB, 5.4% CIB, 3.2% Retail, Consumer, Retail, 58.1% 31.5% Cons
Slide 30: Strong portfolio diversification with 57% exposure to individuals
Asset Quality Strong portfolio diversification with a 57% exposure to individuals and stable sector distribution CREDIT QUALITY SECTOR DISTRIBUTION 1 Wholesale and retail trade 23% Manufacturing Mar-24 Dec-24 Mar-25 16% Real estate activities 14% Construction 6% NPL ratio 3.10% 3.05% 2.99% Transport
Slide 31: Index
Index 1 2 3 4 5 6 7 8 Q1 2025 Summary Santander Business Model Strategy Capital Asset Quality Liquidity Funding. Ratings Sustainability Concluding Remarks Links, Appendix and Glossary Q1 2025 Santander Capital Asset Liquidity & Sustainability Concluding Links, Summary Business Quality Funding. Remar
Slide 32: Local knowledge with global best practices through autonomous subsidiaries
Liquidity and Funding The Group’s business model combines local knowledge with global best practices through legally, financially and operationally autonomous subsidiaries… LEGAL AUTONOMY STRUCTURE Dec-24 Banco Santander S.A.1 Banco Santander Santander Consumer Santander Totta SGPS, Banco Finance UK
Slide 33: Resolution groups that can be resolved separately through multiple entry points
Liquidity and Funding … divided into different resolution groups that can be resolved separately though multiple entry points MPE RESOLUTION STRATEGY Banking Union European Union 3rd Countries Spain1 Poland US Brazil UK Resolution Group PE PE PE PE PE PE Point of Entry Chile Mexico Argentina PE PE P
Slide 34: Santander's liquidity management principles
Liquidity and Funding Santander’s liquidity management is based on the following principles Decentralized liquidity model. Needs derived from medium- and long-term activity must be financed by medium- and long-term instruments. High contribution from customer deposits, due to the retail nature
Slide 35: Stock of issuances shows diversification across instruments and entities
Liquidity and Funding Stock of issuances shows diversification across instruments and entities DEBT OUTSTANDING BY TYPE AND CURRENCY Mar-25 AT1/Pref., Includes the issuance of Green, Social and Sustainable Bonds Tier 2/Sub, €10.9bn, 5% in line with the Group’s Sustainability strategy: €20.9bn, 10% T
Slide 36: Conservative and decentralized liquidity and funding model
Liquidity and Funding Conservative and decentralized liquidity and funding model €17.3bn1 ISSUED IN PUBLIC MARKETS IN Q1’25 VERY MANAGEABLE MATURITY PROFILE € bn, Mar-25 € bn, Mar-25 13.1 Covered 11.3 12.0 6.3 5.7 Bonds 2.2 8.7 0.3 1.8 23.5 Senior 12.3 14.2 5.3 4.9 10.1 6.4 1.9 1.2 2.9 0.7 2.3 0.9 4
Slide 37: 2025 issuances against funding plan
Liquidity and Funding 2025 issuances against funding plan EXECUTION OF 2025 FUNDING PLAN € bn, Mar-25 AT1 + Tier 2 SNP + Senior Covered Bonds TOTAL Plan Issued Plan Issued Plan Issued Plan Issued 1 1 Banco Santander, S.A. 0 - 0.5 0.4 20 - 21 12.5 0.5 - 2 - 20.5 - 23.5 12.9 2 2 UK - - 7-8 3.5 4-5 3.0
Slide 38: TLAC/MREL for the Resolution Group headed by Banco Santander
Liquidity and Funding TLAC/MREL for the Resolution Group headed by Banco Santander, S.A. TLAC Mar-25(e) MREL Mar-25(e) % % and € bn Requirement Requirement CBR 41.0% CBR 170.3 29.9% Buffer 4.4% Buffer 27.1 Senior 7.7% 4.2% 34.9 SNP 4.2% 2.1 Sub debt 13.2 T2 9.6 AT1 2 16.1% Req. Req. 9.5% 36.6% 32.4%
Slide 39: Well-funded, diversified and highly liquid balance sheet
Liquidity and Funding Well-funded, diversified, prudent and highly liquid balance sheet (large % contribution from customer deposits), reflected in solid liquidity ratios LIQUIDITY BALANCE SHEET € bn, Mar-25 Liquidity Coverage Net Stable Funding 1,571 1,571 Ratio (LCR) Ratio (NSFR) 1 Mar-25 Dec-24 D
Slide 40: Main metrics show strength and stability of liquidity position
Liquidity and Funding The main metrics show the strength and stability of the Group’s liquidity position LTD AND MLT FUNDING METRICS EVOLUTION OF KEY LIQUIDITY METRICS BY GEOGRAPHY Mar-25 (Deposits + M/LT LTD Ratio funding) / Loans 1 2021 2022 2023 2024 Mar-25 1 Spain 3 74% 146% Loans / net assets 7
Slide 41: Banco Santander, S.A. ratings
Liquidity and Funding Banco Santander, S.A. ratings Moody's S&P Fitch Date last Direction Direction Date last Direction Rating Rating Date last change Rating change last change last change change last change Covered Bonds Aa1 17/04/2018 ↑ - - - AAAu 16/11/2023 ↑ Senior Debt A2 11/01/2019 ↑ A+ 16/12/
Slide 42: Santander Parent & Subsidiaries' Senior Debt Ratings
Liquidity and Funding Santander Parent & Subsidiaries’ Senior Debt Ratings Moody's S&P Fitch Date last Direction Date last Direction Date last Direction Rating Outlook Rating Outlook Rating Outlook change last change change last change change last change Group A2 11/01/2019 ↑ POS A+ 16/12/2021 ↑ STA
Slide 43: Index
Index 1 2 3 4 5 6 7 8 Q1 2025 Summary Santander Business Model Strategy Capital Asset Quality Liquidity Funding. Ratings Sustainability Concluding Remarks Links, Appendix and Glossary Q1 2025 Santander Capital Asset Liquidity & Sustainability Concluding Links, Summary Business Quality Funding. Remar
Slide 44: Sustainability | Our strategy
Sustainability Sustainability | Our strategy Help our customers in meeting their goals in their transition to a low-carbon economy while also managing climate-related risks and impacts. Help our employees develop by promoting an inclusive culture and learning and providing fair working conditions. C
Slide 45: We continue to make progress on our Sustainability agenda
Sustainability We continue to make progress on our Sustainability agenda Mar-25 Targets Green Finance €120bn 2025 ✓ raised and facilitated €144.9bn (since 2019) €220bn 2030 Socially Responsible Investments (SRI) AuMs €108.0bn €100bn 2025 ✓ Financial inclusion (# People)1 4.8mn 5mn 2025 Note: targets
Slide 46: ESG Ratings/Indices
Sustainability ESG Ratings/Indices 2024 2023 ESG ratings agencies: the aim is to convey our developments access our progress and spot areas for improvement CCC B BB BBB A AA AAA AA Laggard Average Leader D- D C- C B- B A- A A Disclosure Awareness Management Leadership >40 40-30 30-20 20-10 <10 17.1
Slide 47: Index
Index 1 2 3 4 5 6 7 8 Q1 2025 Summary Santander Business Model Strategy Capital Asset Quality Liquidity Funding. Ratings Sustainability Concluding Remarks Links, Appendix and Glossary Q1 2025 Santander Capital Asset Liquidity & Sustainability Concluding Links, Summary Business Quality Funding. Remar
Slide 48: Concluding Remarks
Concluding Remarks Concluding Remarks The Group’s stable capital generation has been supported by strong pre-provision profits providing Santander with a high capacity to absorb provisions. Strong capital levels in line with Santander’s business model based on geographic diversification, solid m
Slide 49: Index
Index 1 2 3 4 5 6 7 8 Q1 2025 Summary Santander Business Model Strategy Capital Asset Quality Liquidity Funding. Ratings Sustainability Concluding Remarks Links, Appendix and Glossary Q1 2025 Santander Capital Asset Liquidity & Sustainability Concluding Links, Summary Business Quality Funding. Remar
Slide 50: Links to Grupo Santander public materials
Links, Appendix and Glossary Links to Grupo Santander public materials For additional information on the Group, please click on the images or icons below Q1’25 financial results Financial report Earnings presentation Series Shareholders report 2024 Digital annual review 2024 Annual report Global bus
Slide 51: Retail & Commercial Banking
Links, Appendix and Glossary Retail & Commercial Banking ‘A global business integrating all our retail and commercial banking activities to better serve our customers, improve efficiency and drive value creation’ Q1'25 Highlights Strategic priorities # cards (mn) 106 • Continue our transformation jo
Slide 52: Digital Consumer Bank
Links, Appendix and Glossary Digital Consumer Bank ‘Global leader in auto financing and digital consumer activities’ Delivering the best solutions to customers (B2B and B2C), while being the most cost competitive player in the market Q1'25 Highlights Strategic priorities Customer loans (€ bn) 214 •
Slide 53: Corporate & Investment Banking
Links, Appendix and Glossary Corporate & Investment Banking ‘Santander CIB supports corporate and institutional clients, delivering tailored services and high value-added wholesale products suited to their complexity and sophistication’ Q1'25 Highlights Strategic priorities Customer loans (€ bn) 142
Slide 54: Wealth Management & Insurance
Links, Appendix and Glossary Wealth Management & Insurance ‘We want to become the best wealth and insurance manager in Europe and the Americas’ Q1'25 Highlights Strategic priorities Total assets under management (€ bn) 1 511 • Continue building our global platform, accessing new markets and leveragi
Slide 55: Payments
Links, Appendix and Glossary Payments - ‘One-of-a-kind paytech business that offers innovative payment solutions’ Q1'25 Highlights Strategic priorities • We are a one-of-a-kind paytech business backed by Santander EBITDA margin 28.6% • Helping our customers prosper and accelerate their growth throug
Slide 56: Payments - Cards
Links, Appendix and Glossary Payments - Cards ‘Provide exceptional payments experience, fostering customer loyalty and leveraging transactional data to enhance profitability’ Q1'25 Highlights Strategic priorities # cards (mn) 106 • Profitably expand our credit business through the use of data and mo
Slide 57: Glossary and Acronyms
Links, Appendix and Glossary Glossary and Acronyms • A2A: account to account • FTE: Full time employee • Retail: Retail & Commercial Banking • ALCO: Assets and Liabilities Committee • FX: Foreign exchange • RoE: Return on equity • AM: Asset management • FY: Full year • RoRWA: Return on risk-weighted
Slide 58: Glossary - Definitions
Links, Appendix and Glossary 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 minu
Slide 59: 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:
Banco Santander — Debt Investor Presentation (April 2025) on 6ix