Slide 1: Form 6-K
FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of October, 2021 Commission File Number: 001-12518 Banco Santander, S.A. (Exact name of registrant as specified in its ch
Slide 2: Table of Contents
BANCO SANTANDER, S.A. ________________________ TABLE OF CONTENTS Item 1. January - September 2021 Earnings presentation
Slide 3: 9M'21 Earnings Presentation
9M’21 Earnings Presentation All. Together. Now. 27 October 2021
Slide 4: Important information
2 Important information Non-IFRS and alternative performance measures This presentation 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 (“AP
Slide 5: Important information
3 Important information 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 statemen
Slide 6: Index
4 Index 1 Appendix 3 Business areas review Key takeaways 2 4 Highlights and Group performance
Slide 7: Another strong set of results in Q3, reflecting business momentum
5 Delivered another strong set of results in Q3, reflecting business momentum Growth • Net operating income up 11% YoY driven by the 8% increase in total income (volumes: +4% loans; +6% deposits; +17% mutual funds) and efficiency improvement • Widespread growth across regions and businesses • Increa
Slide 8: Customer growth and digitalization drove revenue and efficiency
6 Steady customer growth and increased digitalization led to strong revenue generation and efficiency improvement Total customers 152 mn +3% # Digital transactions 2,805 mn +39% Top 3 NPS in 7 markets Digital sales 54% +10 pp 9M'21 and YoY changes Efficiency 45.6% -123 bps Total income c. EUR 35 bn
Slide 9: 9M underlying profit of EUR 6.4 billion
7 EUR million 9M'21 9M'20 Euros NII 24,654 23,975 3 7 Net fee income 7,810 7,559 3 8 Trading and other income 2,162 2,071 4 8 Total income 34,626 33,605 3 8 Operating expenses -15,778 -15,726 0 4 Net operating income 18,848 17,879 5 11 LLPs -5,973 -9,562 -38 -34 Other results -1,443 -1,301 11 15 Und
Slide 10: Strong revenue drove earnings growth in Q3
8 3,524 3,004 2,589 2,674 2,015 1,761 2,197 Q1'20 Q2 Q3 Q4 Q1'21 Q2 Q3 Strong revenue drove earnings growth in Q3, with some seasonality in provisions in the US Note: data in constant euros 5,148 4,961 5,107 5,321 5,153 5,265 5,360 Costs +2% QoQ LLPs +25% QoQ 10,672 10,371 11,137 11,172 11,502 11,31
Slide 11: NII up 7% YoY on volumes and margin management
9 NII up 7% YoY driven by an outstanding volume performance and margin management Note: changes in constant euros. Loans and advances to customers excluding reverse repos. Customer deposits excluding repos • NII growth YoY and QoQ was driven by higher lending and deposit volumes, partially offset by
Slide 12: Fee income and activity rebound
10 • Strong acquiring turnover recovery boosted by • Overall growth in cards turnover Activity rebound Net fee income up 8% YoY, recovering to pre-pandemic levels and growing in higher value-added services and products Note: changes in constant euros (1) Gross written protection insurance premiums P
Slide 13: Continued progress on driving efficiencies
11Note: South America excluding Argentina: +4% Continued progress on driving efficiencies (mainly in Europe: -657 bps YoY) despite accelerating inflation. Costs fell 1% in real terms Europe -1.5% North America South America +8% +3% +1% +2% +8.5% +8.6% +3.7% Digital Consumer Bank -7% -3% -2% +5% Digi
Slide 14: Loan-loss provisions and credit quality
12 Loan-loss provisions Constant EUR bn 3.5 3.0 2.6 2.7 2.0 1.8 2.2 Q1'20 Q2 Q3 Q4 Q1'21 Q2 Q3 Credit quality indicators Sep-20 Jun-21 Sep-21 Cost of credit1 NPL ratio Coverage ratio Note: exposure and coverage ratio by stage in appendix, page 58 1.27% 0.94% 3.15% 3.22% 76% 73% (1) Provisions to cov
Slide 15: Fully-loaded CET1 ratio at top end of target range
13 Strong organic generation, which enabled us to maintain the fully-loaded CET1 ratio at the top end of our 11-12% target range… (1) Market risk, NPL backstop, New Default Definition anticipation (2) Mainly HTC&S Fully-loaded CET1 ratio quarterly evolution 11.85-0.16 -0.17 11.70 +0.48 Jun-21 Organi
Slide 16: Growth in profitability and TNAVps
14 7.1% 7.4% 12.6% 9M'20 2020 9M'21 …whilst we continued to deliver outstanding growth in profitability and TNAVps Statutory RoTE 9M'20: 3.3%, 2020: 1.9% and 9M'21: 11.8% Underlying RoTE EUR Underlying earnings per share TNAV per share EUR cents 18.7 34.4 9M'20 9M'21 Statutory earnings per share 9M'
Slide 17: Committed to delivering shareholder value
15 Payable in two cycles: 40% pay-out of Group’s FY21 underlying profit Committed to delivering shareholder value (1) The board of directors has approved the payment of the interim cash dividend against 2021 results in November and the repurchase programme, which commenced on 6 October 2021 (2) The
Slide 18: Environmental: ambition to be Net Zero by 2050
16 E Environmental - Ambition to be Net Zero by 2050 Net-Zero Banking Alliance Reduce emission intensity1 by 2030 0.23 tCO2/MWh In Q3, we joined the Partnership for Carbon Accounting Financials (PCAF) Setting decarbonization targets ESG: supporting the green transition of our clients and committed t
Slide 19: Social and governance: building a more inclusive society
17 Santander finance for all Diversity & Inclusion 6.2 mn people since 2019 Goal: 10 mn of financially empowered people by 2025 … whilst we continue building a more inclusive society (1) Senior positions represent c.2,300 employees (2) As of Jan-19 (3) Also including contribution to the climate proj
Slide 20: Business areas review
18 Index 1 Appendix 3 Business areas review Key takeaways 2 4 Highlights and Group performance
Slide 21: Geographic and business diversification as growth driver
19 Our geographic and business diversification continued to be a key growth driver Underlying att. profit (EUR mn) Net operating income (EUR mn) Europe South America North America 9M'21 vs. 9M'20 Underlying RoTE Customer deposits (EUR bn) Customer loans (EUR bn) Digital Consumer Bank Digital custome
Slide 22: Spain
20 Spain 200 336 Loans Funds 0% P&L* Q3'21 vs. Q2'21 9M'21 % 9M'20 NII 975 -3.9 3,009 4.1 Net fee income 616 -0.1 1,821 4.6 Total income 1,881 11.1 5,359 4.1 Operating expenses -818 -4.0 -2,537 -7.2 Net operating income 1,063 26.3 2,822 16.8 LLPs -449 -8.7 -1,390 0.0 PBT 453 123.7 995 42.9 Underlyin
Slide 23: UK
21 UK VOLUMES1 Sep-21 KEY DATA 9M'21 % 9M'20 Digital customers (mn) 6.5 +5% NPL ratio (%) 1.27 -6 bps Cost of credit (%) 0.01 -25 bps Efficiency ratio (%) 53.4 -1,266 bps Underlying RoTE (%) 11.5 +9.3 pp P&L* Q3'21 vs. Q2'21 9M'21 % 9M'20 NII 1,168 5.4 3,268 26.6 Net fee income 114 -3.7 352 -13.8 To
Slide 24: Brazil
22 Brazil KEY DATA 9M'21 % 9M'20 Digital customers (mn) 18.2 +20% NPL ratio (%) 4.72 +8 bps Cost of credit (%) 3.60 -98 bps Efficiency ratio (%) 29.3 -252 bps Underlying RoTE (%) 21.6 +3.3 pp P&L* Q3'21 vs. Q2'21 9M'21 % 9M'20 NII 2,083 5.1 5,782 11.9 Net fee income 696 -3.7 2,027 6.7 Total income 2
Slide 25: USA
23 USA KEY DATA 9M'21 % 9M'20 Digital customers (k) 1,032 +4% NPL ratio (%) 2.36 +51 bps Cost of credit (%) 1.06 -202 bps Efficiency ratio (%) 42.0 +50 bps Underlying RoTE (%) 14.3 +10.3 pp 95 91 Loans Funds P&L* Q3'21 vs. Q2'21 9M'21 % 9M'20 NII 1,359 0.1 4,022 -0.4 Net fee income 174 -11.7 606 -5.
Slide 26: Mexico
24 Mexico KEY DATA 9M'21 % 9M'20 Digital customers (mn) 5.3 +11% NPL ratio (%) 3.14 +80 bps Cost of credit (%) 2.69 -28 bps Efficiency ratio (%) 44.2 +325 bps Underlying RoTE (%) 13.6 -1.6 pp P&L* Q3'21 vs. Q2'21 9M'21 % 9M'20 NII 711 1.7 2,063 -3.6 Net fee income 203 -5.8 617 4.6 Total income 919 2
Slide 27: Digital Consumer Bank
25 New lending well above 9M’20 (+11% YoY). Activity in Q3 dampened by worldwide production issues in new auto while used vehicles were broadly flat. Consumer new lending increased Profit up YoY driven by revenue increases (net fee income boosted by higher activity) and improved cost of credit Stron
Slide 28: Global businesses: Wealth Management & Insurance
26 Global businesses Wealth Management & Insurance P&L* Q3'21 vs. Q2'21 9M'21 % 9M'20 Total income 616 17.7 1,637 13.6 Net operating income 395 34.0 969 20.7 Underlying att. profit 292 38.2 698 23.9 (*) EUR mn and % change in constant euros EUR 396 bn (+12% YoY) AUMs EUR 2,494 mn (+11% YoY) Total fe
Slide 29: PagoNxt
27 Merchant solutions Trade solutions Getnet franchise continues to grow: •Brazil: Getnet Brazil has recorded very significant market shares gains in the country (16% in Total Payments Volume and > 30% in e-commerce) •Europe: Getnet operations launched in Q3, commercial activity has started to focus
Slide 30: Corporate Centre
28 Lower revenue affected by the positive impact of FX hedging in 2020 Operating expenses decreased in real terms driven by streamlining and simplification measures Significantly lower provisions due to charges in 9M'20 for certain holdings whose valuation was affected by the crisis Corporate Centre
Slide 31: Key takeaways
29 Index 1 Appendix 3 Business areas review Key takeaways 2 4 Highlights and Group performance
Slide 32: 9M'21 Key takeaways
30 9M'21 Key takeaways Solid P&L performance Sound revenue performance Efficiency gains -123 bps Revenue +8% Underlying profit EUR 6.4 bn Low cost of credit 0.90% Volume growth and profitability improvement Volume growth YoY and QoQ Increasing capital ratio and profitability FL CET1 11.85% Deliverin
Slide 33: Appendix
31 Index 1 Appendix 3 Business areas review Key takeaways 2 4 Highlights and Group performance
Slide 34: Appendix index
32 Primary segments and other countries Secondary segments Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements Glossary Appendix
Slide 35: Europe
33 Europe P&L* Q3'21 vs. Q2'21 9M'21 % 9M'20 NII 2,744 -0.5 8,140 11.9 Net fee income 1,079 -0.6 3,236 6.9 Total income 4,208 6.5 12,299 11.5 Operating expenses -2,048 -1.3 -6,191 -1.5 Net operating income 2,160 15.2 6,108 28.8 LLPs -676 11.6 -1,877 -22.5 Underlying PBT 1,227 32.8 3,377 96.5 Underly
Slide 36: Portugal
34 Portugal 40 46 Loans Funds KEY DATA 9M'21 % 9M'20 Digital customers (k) 980 +9% NPL ratio (%) 3.44 -81 bps Cost of credit (%) 0.35 -7 bps Efficiency ratio (%) 41.2 -389 bps Underlying RoTE (%) 11.2 +2.7 pp P&L* Q3'21 vs. Q2'21 9M'21 % 9M'20 NII 185 -3.5 569 -3.9 Net fee income 115 4.3 325 13.9 To
Slide 37: Poland
35 Poland KEY DATA 9M'21 % 9M'20 Digital customers (k) 2,917 +8% NPL ratio (%) 4.34 -24 bps Cost of credit (%) 0.82 -17 bps Efficiency ratio (%) 41.0 -84 bps Underlying RoTE (%) 5.1 -0.8 pp P&L* Q3'21 vs. Q2'21 9M'21 % 9M'20 NII 251 1.3 741 -4.0 Net fee income 133 5.7 386 19.5 Total income 405 -2.2
Slide 38: North America
36 North America P&L* Q3'21 vs. Q2'21 9M'21 % 9M'20 NII 2,070 0.7 6,085 -1.5 Net fee income 386 -8.0 1,247 0.0 Total income 2,779 -0.1 8,266 3.0 Operating expenses -1,275 4.5 -3,617 8.5 Net operating income 1,504 -3.8 4,649 -1.0 LLPs -506 156.6 -1,095 -63.6 Underlying PBT 959 -30.4 3,504 117.4 Under
Slide 39: South America
37 South America KEY DATA 9M'21 % 9M'20 Digital customers (mn) 23.5 +18% NPL ratio (%) 4.38 -2 bps Cost of credit (%) 2.52 -97 bps Efficiency ratio (%) 34.6 -81 bps Underlying RoTE (%) 20.1 +3.1 pp P&L* Q3'21 vs. Q2'21 9M'21 % 9M'20 NII 2,920 4.2 8,254 12.8 Net fee income 956 0.8 2,726 13.2 Total in
Slide 40: Chile
38 Chile KEY DATA 9M'21 % 9M'20 Digital customers (k) 1,934 +30% NPL ratio (%) 4.36 -40 bps Cost of credit (%) 0.89 -69 bps Efficiency ratio (%) 38.7 -210 bps Underlying RoTE (%) 18.5 +7.5 pp P&L* Q3'21 vs. Q2'21 9M'21 % 9M'20 NII 467 -3.5 1,476 11.8 Net fee income 104 14.0 294 20.0 Total income 583
Slide 41: Argentina
39 Argentina KEY DATA 9M'21 % 9M'20 Digital customers (k) 2,713 +1% NPL ratio (%) 3.85 +98 bps Cost of credit (%) 3.51 -203 bps Efficiency ratio (%) 59.6 +514 bps Underlying RoTE (%) 25.3 -3.9 pp P&L* Q3'21 vs. Q2'21 9M'21 % 9M'20 NII 268 11.7 708 25.6 Net fee income 110 23.8 272 72.2 Total income 3
Slide 42: Uruguay and Andean region
40 Uruguay and Andean region PERUURUGUAY COLOMBIA Underlying attributable profit 91 80 9M'20 9M'21 31 43 9M'20 9M'21 14 17 9M'20 9M'21 22% RoTE 24% RoTE 16% RoTE -13% +37% +25% Note: year-on-year changes, constant EUR mn High profitability sustained across all countries supported by stronger custome
Slide 43: Appendix index
41 Primary segments and other countries Secondary segments Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements Glossary Appendix
Slide 44: Retail Banking
42 Retail Banking ACTIVITY1 P&L* Q3'21 vs. Q2'21 9M'21 % 9M'20 NII 7,968 1.5 23,206 7.2 Net fee income 1,746 -1.5 5,208 3.1 Total income 10,173 2.5 29,520 7.3 Operating expenses -4,336 1.2 -12,740 1.3 Net operating income 5,837 3.5 16,780 12.3 LLPs -2,199 26.1 -5,708 -34.9 Underlying PBT 3,194 -6.8
Slide 45: SCIB Corporate & Investment Banking
43 1,643 1,326 1,196 1873,881 4,352 9M'20 9M'21 Global Transactional Banking Global Debt Financing Markets Other We continued to strengthen our position as our client’s strategic advisors Increased our participation in green and ESG bonds, being one of the world leaders in financing and advising on
Slide 46: Wealth Management & Insurance
44 396 243 192 77 98 55 20 Wealth Management & Insurance P&L* Q3'21 vs. Q2'21 9M'21 % 9M'20 NII 96 3.8 275 -2.4 Net fee income 321 0.8 933 11.9 Total income 616 17.7 1,637 13.6 Operating expenses -221 -3.4 -668 4.7 Net operating income 395 34.0 969 20.7 LLPs -6 114.2 -14 -39.1 Underlying PBT 405 39.
Slide 47: Appendix index
45 Appendix Primary segments and other countries Secondary segments Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements Glossary
Slide 48: Liquidity balance sheet
46 ST Funding Securitisations and others Equity and other liabilities Loans and advances to customers Financial assets Fixed assets & other Customer deposits M/LT debt issuances Note: Liquidity balance sheet for management purposes (net of trading derivatives and interbank balances) (1) Provisional
Slide 49: Issuances and maturity profile
47 EUR 21.8 bn1 issued in public markets in 9M’21 Very manageable maturity profile Conservative and decentralized liquidity and funding model EUR bn, Sep-21 EUR bn, Sep-21 Covered Bonds Senior Non- Preferred Senior Note: preference shares also includes other AT1 instruments. Other Other includes i
Slide 50: ALCO portfolios and interest rate sensitivity
48 ALCO portfolios reflect our geographic diversificationMostly positive interest rate sensitivity Net interest income sensitivity* to a +/-100 bp parallel shift EUR mn, Aug-21 Distribution of ALCO portfolios by country %, Sep-21 Interest rate risk hedging Spain, 4% SCF, 6% UK, 7% Poland, 16% Portug
Slide 51: Issuances against 2021 funding plan
49 Issuances YTD against funding plan 2021 Funding plan and issuances EUR bn, Sep-21 o The Financial Plan is focused on covering TLAC/MREL requirements, with no secured issuances, to: o continue building up TLAC/MREL buffers. o pre-finance senior non-preferred / senior preferred transactions which l
Slide 52: Capital levels and regulatory requirements
50 Santander’s capital levels, both phased-in and fully loaded, exceed minimum regulatory requirements SREP capital requirements and MDA* Assumed capital requirements (fully-loaded) Sep-21 Sep-21 * The phased-in ratio includes the transitory treatment of IFRS 9, calculated in accordance with article
Slide 53: EBA stress test: profit after tax
51(1) Accumulated profit after tax (3 years). (2) FX impact is only applied in the adverse scenario Peers include: BBVA, BNP, Commerzbank, Crédit Agricole, Deutsche Bank, ING, Intesa SP, Nordea, Société Générale and Unicredit 1,875 4,250 4,285 7,133 8,015 10,067 10,779 11,464 12,584 13,865 36,744 P1
Slide 54: EBA stress test: CET1 impact
52 12.2 12.3 12.8 13.2 13.4 13.6 14.7 15.4 16.0 17.1 17.3 P1 Santander P4 P5 P7 P8 P6 P3 P10 P2 P9 7.6 7.7 8.3 8.5 9.0 9.4 9.6 9.9 10.9 11.0 13.4 P8 P7 P4 P5 P1 P6 P10 Santander P9 P3 P2 -637 -631 -608 -570 -533 -470 -448 -445 -369 -319 -240 P10 P9 P8 P7 P6 P5 P4 P3 P2 P1 Santander Santander was als
Slide 55: TLAC ratios
53 TLAC ratios for the Resolution Group headed by Banco Santander, S.A. TLAC Ratio June 21 figures show the closing data, not the estimates shown in the second quarter earnings presentation • TLAC ratio increased from 25.2% to 25.5% of RWAs (compared to a fully-loaded TLAC requirement of 21.5% in Ja
Slide 56: Appendix index
54 Appendix Primary segments and other countries Secondary segments Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements Glossary
Slide 57: Yield on loans
55 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Europe 2.30 2.12 2.06 2.09 2.08 2.04 2.00 Spain 1.99 1.86 1.82 1.85 1.85 1.80 1.68 United Kingdom 2.49 2.35 2.32 2.36 2.33 2.32 2.33 Portugal 1.63 1.57 1.57 1.51 1.46 1.40 1.36 Poland 4.04 3.34 2.95 2.89 2.91 2.91 2.94 North America 8.99 7.89 7.85 7.71 7.
Slide 58: Cost of deposits
56 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Europe 0.36 0.25 0.14 0.12 0.11 0.08 0.07 Spain 0.06 0.04 0.04 0.04 0.04 0.03 0.03 United Kingdom 0.69 0.52 0.29 0.23 0.21 0.15 0.11 Portugal 0.08 0.06 0.05 0.03 0.02 0.02 0.02 Poland 0.65 0.42 0.14 0.09 0.05 0.03 0.01 North America 1.60 1.18 0.91 0.74 0.
Slide 59: Appendix index
57 Appendix Primary segments and other countries Secondary segments Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements Glossary
Slide 60: Stage coverage
58 Stage coverage Exposure ¹ Coverage Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Stage 1 891 878 862 864 885 904 912 0.6% 0.6% 0.6% 0.5% 0.5% 0.5% 0.5% Stage 2 53 61 60 69 70 70 67 8.2% 7.7% 8.8% 8.5% 8.1% 8.2% 8.6% Stage 3 33 33 31 32 32 33 33
Slide 61: NPL ratio
59 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Europe 3.37 3.41 3.29 3.34 3.26 3.30 3.15 Spain 6.88 6.55 5.98 6.23 6.18 6.22 5.99 United Kingdom 0.99 1.10 1.33 1.24 1.35 1.30 1.27 Portugal 4.56 4.43 4.25 3.89 3.84 3.71 3.44 Poland 4.29 4.57 4.58 4.74 4.82 4.58 4.34 North America 2.02 1.73 1.96
Slide 62: Total coverage ratio
60 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Europe 47.0 46.5 48.7 50.3 50.0 48.4 51.1 Spain 44.6 43.3 46.0 47.1 47.2 46.0 48.8 United Kingdom 39.7 42.8 41.6 44.7 40.5 37.4 36.6 Portugal 59.0 60.9 64.3 66.5 69.2 73.0 75.5 Poland 68.1 69.0 70.8 70.7 70.3 72.4 74.6 North America 170.1 206.5 201
Slide 63: Credit impaired loans and loan-loss allowances
61 Spain, 27.0% UK, 5.1% Portugal, 4.5% Poland, 4.4% Other Europe, 1.7% USA, 16.6% Mexico, 4.2% Brazil, 18.3% Chile, 4.8% Argentina, 1.2% Other South America, 0.7% DCB, 11.6% Spain, 41.2% UK, 10.4%Portugal, 4.5% Poland, 4.4% Other Europe, 1.9% USA, 7.7% Mexico, 3.5% Brazil, 12.2% Chile, 5.6% Argenti
Slide 64: Cost of credit
62 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Europe 0.36 0.41 0.48 0.58 0.51 0.49 0.48 Spain 0.64 0.68 0.80 1.01 0.91 1.00 1.01 United Kingdom 0.14 0.22 0.26 0.27 0.21 0.09 0.01 Portugal 0.23 0.30 0.42 0.51 0.38 0.41 0.35 Poland 0.88 0.96 0.99 1.10 1.02 0.88 0.82 North America 3.02 3.21 3.07
Slide 65: Appendix index
63 Appendix Primary segments and other countries Secondary segments Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements Glossary
Slide 66: Santander Responsible Banking goals
64 Santander Responsible Banking goals Note: H1’21 data not audited (*) 9M’21 provisional and not audited data (1) Includes Santander overall contribution to green finance: project finance, syndicated loans, green bonds, capital finance, export finance, advisory, structuring and other products to he
Slide 67: Appendix index
65 Appendix Primary segments and other countries Secondary segments Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements Glossary
Slide 68: Group quarterly income statement (EUR mn)
66 (*) Including: in Q1’20, restructuring costs in Q2’20, adjustment to the valuation of goodwill, adjustment has been made to deferred tax assets of the Spanish consolidated fiscal group and restructuring costs and other in Q4’20, restructuring costs and other in Q1’21, restructuring costs Q1'20 Q2
Slide 69: Group quarterly income statement (constant EUR)
67 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 7,646 7,485 7,825 8,169 8,037 8,247 8,370 22,956 24,654 Net fee income 2,569 2,230 2,423 2,484 2,572 2,624 2,613 7,223 7,810 Gains (losses) on financial transactions and other 456 655 888 519 892 446 824 2,000 2,162 Total i
Slide 70: Europe (EUR mn)
68 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 2,378 2,330 2,534 2,670 2,645 2,751 2,744 7,241 8,140 Net fee income 1,128 942 961 968 1,072 1,086 1,079 3,032 3,236 Gains (losses) on financial transactions and other 212 125 388 37 432 106 385 725 923 Total income 3,718 3
Slide 71: Europe (Constant EUR mn)
69 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 2,360 2,347 2,569 2,711 2,656 2,748 2,735 7,275 8,140 Net fee income 1,120 944 965 971 1,073 1,085 1,078 3,028 3,236 Gains (losses) on financial transactions and other 213 122 388 35 432 107 384 723 923 Total income 3,692 3
Slide 72: Spain (EUR mn)
70 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 925 931 1,034 1,067 1,019 1,015 975 2,890 3,009 Net fee income 643 535 562 573 587 617 616 1,740 1,821 Gains (losses) on financial transactions and other 220 96 204 (8) 178 62 290 520 529 Total income 1,789 1,562 1,800 1,63
Slide 73: United Kingdom (EUR mn)
71 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 820 796 905 983 1,001 1,100 1,168 2,521 3,268 Net fee income 190 94 115 96 120 117 114 398 352 Gains (losses) on financial transactions and other (3) 1 14 (31) (10) (6) 21 12 5 Total income 1,007 891 1,034 1,048 1,111 1,211
Slide 74: United Kingdom (GBP mn)
72 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 706 706 818 885 874 948 1,000 2,230 2,822 Net fee income 163 85 104 87 105 101 97 352 304 Gains (losses) on financial transactions and other (2) 1 13 (27) (8) (5) 18 11 4 Total income 867 791 934 945 971 1,044 1,115 2,593 3
Slide 75: Portugal (EUR mn)
73 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 202 197 193 195 193 192 185 592 569 Net fee income 101 90 94 103 99 110 115 285 325 Gains (losses) on financial transactions and other 47 30 25 19 135 1 12 102 148 Total income 350 317 312 317 427 303 312 979 1,042 Operatin
Slide 76: Poland (EUR mn)
74 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 296 251 246 243 240 250 251 794 741 Net fee income 116 104 112 120 127 126 133 332 386 Gains (losses) on financial transactions and other (48) 23 35 24 (10) 41 21 10 52 Total income 365 377 394 388 357 417 405 1,136 1,179 O
Slide 77: Poland (PLN mn)
75 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 1,279 1,134 1,095 1,096 1,090 1,131 1,145 3,508 3,367 Net fee income 503 467 498 541 576 573 606 1,468 1,754 Gains (losses) on financial transactions and other (206) 95 156 109 (46) 187 98 45 238 Total income 1,576 1,696 1,
Slide 78: Other Europe (EUR mn)
76 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 134 155 155 182 192 195 165 445 553 Net fee income 78 120 78 75 138 115 101 276 354 Gains (losses) on financial transactions and other (5) (24) 109 32 139 8 41 80 188 Total income 207 251 343 290 469 318 307 801 1,095 Opera
Slide 79: Other Europe (Constant EUR mn)
77 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 133 152 155 182 192 195 165 439 553 Net fee income 75 118 78 75 139 115 100 272 354 Gains (losses) on financial transactions and other (6) (25) 109 32 139 9 40 78 188 Total income 202 244 343 290 470 319 306 789 1,095 Opera
Slide 80: North America (EUR mn)
78 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 2,261 2,079 2,076 2,055 2,005 2,010 2,070 6,415 6,085 Net fee income 464 405 413 402 451 410 386 1,282 1,247 Gains (losses) on financial transactions and other 216 227 194 242 313 299 322 637 934 Total income 2,941 2,711 2,
Slide 81: North America (Constant EUR mn)
79 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 2,074 2,010 2,094 2,064 2,026 2,023 2,036 6,178 6,085 Net fee income 426 399 423 405 457 412 379 1,247 1,247 Gains (losses) on financial transactions and other 199 213 191 239 315 301 317 603 934 Total income 2,699 2,622 2,
Slide 82: United States (EUR mn)
80 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 1,462 1,429 1,406 1,348 1,337 1,326 1,359 4,297 4,022 Net fee income 250 215 218 206 241 191 174 682 606 Gains (losses) on financial transactions and other 217 157 206 247 324 318 316 580 958 Total income 1,929 1,801 1,830
Slide 83: United States (USD mn)
81 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 1,612 1,573 1,644 1,608 1,611 1,599 1,601 4,829 4,810 Net fee income 275 237 255 247 290 231 204 767 725 Gains (losses) on financial transactions and other 239 173 240 291 390 383 372 652 1,145 Total income 2,126 1,983 2,13
Slide 84: Mexico (EUR mn)
82 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 798 650 669 707 667 684 711 2,118 2,063 Net fee income 211 185 189 188 204 210 203 584 617 Gains (losses) on financial transactions and other (2) 70 (10) (4) (6) (16) 5 58 (18) Total income 1,007 905 848 891 865 878 919 2,7
Slide 85: Mexico (MXN mn)
83 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 17,484 16,706 17,310 17,322 16,360 16,503 16,783 51,500 49,647 Net fee income 4,617 4,719 4,868 4,596 4,995 5,077 4,781 14,203 14,853 Gains (losses) on financial transactions and other (51) 1,658 (194) (91) (156) (399) 134
Slide 86: Other North America (EUR mn)
84 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income (0) 0 0 0 0 0 0 0 0 Net fee income 4 5 7 8 7 8 9 16 24 Gains (losses) on financial transactions and other 2 (1) (2) (0) (5) (2) 1 (1) (6) Total income 5 4 6 8 2 5 10 15 18 Operating expenses (6) (6) (13) (22) (28) (32) (35)
Slide 87: Other North America (Constant EUR mn)
85 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income (0) 0 0 0 0 0 0 0 0 Net fee income 4 5 7 8 7 8 9 16 24 Gains (losses) on financial transactions and other 2 (1) (2) (0) (5) (2) 1 (1) (6) Total income 5 4 6 8 2 5 10 15 18 Operating expenses (6) (6) (13) (22) (28) (32) (35)
Slide 88: South America (EUR mn)
86 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 3,065 2,606 2,486 2,566 2,575 2,760 2,920 8,157 8,254 Net fee income 1,077 779 848 885 842 928 956 2,704 2,726 Gains (losses) on financial transactions and other 26 310 149 70 122 85 115 485 322 Total income 4,169 3,695 3,4
Slide 89: South America (Constant EUR mn)
87 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 2,430 2,415 2,475 2,655 2,620 2,759 2,875 7,321 8,254 Net fee income 841 730 836 906 859 930 937 2,407 2,726 Gains (losses) on financial transactions and other 24 277 149 74 127 83 112 450 322 Total income 3,296 3,422 3,460
Slide 90: Brazil (EUR mn)
88 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 2,270 1,813 1,756 1,786 1,780 1,919 2,083 5,840 5,782 Net fee income 869 614 664 677 632 698 696 2,148 2,027 Gains (losses) on financial transactions and other (3) 224 114 82 109 64 103 335 276 Total income 3,137 2,651 2,53
Slide 91: Brazil (BRL mn)
89 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 11,100 10,725 11,066 11,446 11,744 12,228 12,847 32,891 36,819 Net fee income 4,250 3,679 4,167 4,324 4,169 4,450 4,285 12,096 12,905 Gains (losses) on financial transactions and other (14) 1,196 703 538 718 402 635 1,885 1
Slide 92: Chile (EUR mn)
90 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 448 425 420 494 497 511 467 1,293 1,476 Net fee income 92 74 74 94 95 96 104 240 294 Gains (losses) on financial transactions and other 12 85 38 6 22 30 12 136 64 Total income 553 584 532 594 614 637 583 1,669 1,834 Operati
Slide 93: Chile (CLP mn)
91 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 397,015 384,057 383,394 447,669 433,780 441,721 426,106 1,164,466 1,301,606 Net fee income 81,770 67,170 67,421 85,452 82,698 82,631 94,239 216,362 259,567 Gains (losses) on financial transactions and other 10,853 76,628 35
Slide 94: Argentina (EUR mn)
92 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 241 261 218 192 204 235 268 721 708 Net fee income 76 56 70 71 74 87 110 202 272 Gains (losses) on financial transactions and other 1 (8) (14) (36) (16) (22) (13) (21) (51) Total income 318 310 274 226 262 301 365 902 929 O
Slide 95: Argentina (ARS mn)
93 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 16,991 22,846 24,646 29,613 22,035 27,866 31,122 64,484 81,023 Net fee income 5,327 5,132 7,611 10,109 7,977 10,342 12,802 18,070 31,120 Gains (losses) on financial transactions and other 89 (595) (1,349) (4,047) (1,686) (2
Slide 96: Other South America (EUR mn)
94 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 106 107 91 94 93 93 102 304 289 Net fee income 40 34 40 43 41 46 45 114 133 Gains (losses) on financial transactions and other 16 9 11 19 7 13 13 35 33 Total income 162 149 143 157 141 152 161 454 454 Operating expenses (72
Slide 97: Other South America (Constant EUR mn)
95 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 88 96 88 92 92 95 102 272 289 Net fee income 35 31 39 42 41 47 45 105 133 Gains (losses) on financial transactions and other 13 8 10 19 6 13 13 31 33 Total income 136 135 136 152 139 154 161 407 454 Operating expenses (61)
Slide 98: Digital Consumer Bank (EUR mn)
96 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 1,088 1,054 1,048 1,073 1,056 1,075 1,077 3,190 3,207 Net fee income 192 163 211 205 188 206 222 566 616 Gains (losses) on financial transactions and other 11 (4) 50 74 59 21 71 57 151 Total income 1,291 1,214 1,309 1,352 1
Slide 99: Digital Consumer Bank (Constant EUR mn)
97 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 1,086 1,067 1,058 1,084 1,057 1,072 1,078 3,211 3,207 Net fee income 192 164 211 205 188 206 222 567 616 Gains (losses) on financial transactions and other 11 (4) 51 75 60 21 70 58 151 Total income 1,289 1,227 1,319 1,364 1
Slide 100: Corporate Centre (EUR mn)
98 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income (304) (354) (371) (345) (324) (355) (354) (1,029) (1,033) Net fee income (9) (6) (11) (3) (5) (8) (2) (26) (15) Gains (losses) on financial transactions and other 9 47 110 96 (41) (67) (60) 166 (168) Total income (304) (313
Slide 101: Retail Banking (EUR mn)
99 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 8,004 7,272 7,280 7,500 7,472 7,766 7,968 22,557 23,206 Net fee income 2,058 1,536 1,707 1,685 1,709 1,753 1,746 5,301 5,208 Gains (losses) on financial transactions and other 108 263 444 165 355 292 458 815 1,105 Total inc
Slide 102: Retail Banking (Constant EUR mn)
100 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 7,241 7,073 7,335 7,635 7,548 7,771 7,887 21,649 23,206 Net fee income 1,844 1,501 1,709 1,705 1,727 1,754 1,727 5,054 5,208 Gains (losses) on financial transactions and other 136 240 431 147 358 295 452 807 1,105 Total in
Slide 103: Corporate & Investment Banking (EUR mn)
101 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 677 705 771 765 720 739 747 2,153 2,207 Net fee income 402 405 360 375 466 434 435 1,167 1,335 Gains (losses) on financial transactions and other 217 300 242 113 469 110 231 759 810 Total income 1,297 1,410 1,373 1,253 1,6
Slide 104: Corporate & Investment Banking (Constant EUR mn)
102 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 609 677 768 778 724 741 742 2,054 2,207 Net fee income 367 396 358 381 469 435 431 1,121 1,335 Gains (losses) on financial transactions and other 182 272 251 128 472 108 230 706 810 Total income 1,158 1,345 1,377 1,288 1,6
Slide 105: Wealth Management & Insurance (EUR mn)
103 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 109 93 92 100 88 91 96 294 275 Net fee income 308 269 279 296 297 316 321 857 933 Gains (losses) on financial transactions and other 133 99 102 149 117 113 199 334 428 Total income 550 462 474 545 502 519 616 1,486 1,637 O
Slide 106: Wealth Management & Insurance (Constant EUR mn)
104 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 100 89 93 102 89 91 95 282 275 Net fee income 291 264 279 298 298 316 319 834 933 Gains (losses) on financial transactions and other 122 99 103 150 117 113 198 324 428 Total income 514 452 475 549 505 520 612 1,440 1,637 O
Slide 107: PagoNxt (EUR mn)
105 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 0 (1) 0 (0) (1) (1) 0 (0) (2) Net fee income 94 78 88 103 81 127 141 259 349 Gains (losses) on financial transactions and other 7 (3) (8) (2) (14) (4) 4 (3) (14) Total income 101 75 81 100 67 123 144 256 334 Operating expe
Slide 108: PagoNxt (Constant EUR mn)
106 PagoNxt (Constant EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 9M'20 9M'21 Net interest income 0 (0) 0 (0) (1) (1) 0 (0) (2) Net fee income 76 75 88 103 83 128 138 240 349 Gains (losses) on financial transactions and other 7 (3) (7) (2) (14) (3) 4 (3) (14) Total income 83 72 81 101 68 123 1
Slide 109: Appendix index
107 Appendix Primary segments and other countries Secondary segments Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements Glossary
Slide 110: Glossary - Acronyms
108 Glossary - Acronyms ❑ ALCO: Assets and Liabilities Committee ❑ AT1: Additional Tier 1 ❑ AuM: Assets under Management ❑ BFG: Deposit Guarantee Fund in Poland ❑ bn: Billion ❑ Bps: basis points ❑ CET1: Common equity tier 1 ❑ CIB: Corporate & Investment Bank ❑ Covid-19: Coronavirus Disease 19 ❑ DGF:
Slide 111: Notes and definitions: profitability and efficiency
109 Notes: The averages for the RoTE and RoRWA denominators are calculated using10 months from December to September. For periods less than one year, and if there are results in the net capital gains and provisions line, the profit used to calculate RoE and RoTE is the annualized underlying attribut
Slide 112: 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:
Slide 113: Signature
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, thereunto duly authorized. Banco Santander, S.A. Date: 27 October 2021 By: /s/ José García Cantera Name: José García Cantera Title: