Banco Santander, S.a. · BME:SAN
Banco Santander — H1 2021 Earnings Presentation
107 slides from Banco Santander's earnings presentation, Aug 1, 2021
Slide 1: H1'21 Earnings Presentation
28 July 2021 H1’21 Earnings Presentation All. Together. Now.
Slide 2: Important information
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 (“APMs
Slide 3: Important information
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 statements
Slide 4: Index
Index 1 2 3 4 Highlights and Business Key Appendix Group performance areas review takeaways 4
Slide 5: H1'21 Highlights
H1’21 Highlights • Net operating income up 13% YoY driven by the 8% increase in total income (volumes: +2% loans; +4% deposits; +18% mutual funds) and efficiency improvement Growth • Widespread growth across regions and businesses • Greater revenue generation and improved efficiency driven by increa
Slide 6: Greater revenue generation and improved efficiency driven by increased digitalization
Greater revenue generation (+8% YoY) and improved efficiency driven by increased digitalization H1’21 and YoY changes H1’21 and YoY changes in constant euros +3% +8% Total customers 150 mn Total income >EUR 22 bn +38% +13% # Digital transactions 1,757 mn Net operating income >EUR 12 bn +8 pp -159 bp
Slide 7: H1 underlying profit of EUR 4.2 billion, driven by solid net operating income growth
H1 underlying profit of EUR 4.2 billion, driven by solid net operating income growth (+13%1 YoY) and lower cost of credit Underlying Contribution att. profit1 to Group’s % change H1’21 vs. H1’20 (EUR mn) Underlying profit3 EUR million H1'21 H1'20 Euros Constant euros NII 16,196 16,202 0 8 1,426 Euro
Slide 8: Positive customer revenue performance and continued LLP reduction drove profit increase QoQ
Positive customer revenue performance and continued LLP reduction drove profit increase QoQ excluding SRF contribution1 Revenue +3% QoQ Underlying attributable profit 8,127 7,993 8,203 7,604 7,782 Constant EUR mn NII 7,444 +8% QoQ +2% QoQ excluding SRF Net fee 2,555 2,410 2,470 2,559 2,610 2,218 2,1
Slide 9: NII was 8% higher than H1'20 boosted by volume growth and margin management
NII was 8% higher than H1’20 boosted by volume growth and margin management Volume growth H1’21 vs. H1’20 Q2’21 vs. Q1’21 Loans +2% +1% • Activity picked up in the quarter, with growth across regions: loans grew EUR 11 bn and deposits by EUR 12 bn YoY QoQ • Margin management: repricing of liabilitie
Slide 10: Net fee income recovered to pre-pandemic levels
Net fee income recovered to pre-pandemic levels, growing in higher value-added services and products Activity rebound H1’21 vs. H1’20 Q2’21 vs. Q1’21 PoS turnover +54% +19% • Strong acquiring turnover recovery boosted by Cards turnover +26% +14% • Overall growth in cards turnover • Strong signs of r
Slide 11: Continued progress on driving efficiencies despite accelerating inflation
Continued progress on driving efficiencies (mainly in Europe: -800 bps YoY) despite accelerating inflation; costs declined -0.4% in real terms Group Costs by region H1’21 vs. H1’20 - Constant euros Efficiency ratio -159 bps -7% -2% Europe -1.5% 47.3% -2% +5% 45.7% North +6% America +6.7% +2% South -
Slide 12: Further improvement in cost of credit
Further improvement in cost of credit, with lower LLPs in most countries, notably Brazil, the US and the UK Loan-loss provisions Credit quality indicators Constant EUR bn Jun-20 Mar-21 Jun-21 -41% vs. Q2’20 Cost of credit1 1.26% 1.08% 0.94% 3.5 -13% 3.0 QoQ 2.6 2.7 NPL ratio 3.26% 3.20% 3.22% 2.0 1.
Slide 13: Increased profitability and TNAVps
Our strong operating performance resulted in increased profitability and TNAVps… Underlying RoTE Underlying earnings per share TNAV per share EUR cents EUR +4% QoQ 12.6% 22.7 3.98 7.4% 3.83 3.84 5.4% 9.4 H1'20 H1'21 Jun-20 Mar-21 Jun-21 H1'20 2020 H1'21 Statutory RoTE H1’20: 1.7%, 2020: 1.9% and H1’
Slide 14: Continued organic generation maintaining solid capital position
…and continued organic generation, which enabled us to maintain our solid capital position CET1 ratio quarterly evolution % 12.26 +0.07 +0.02 12.11 -0.24 Mar-21 Organic Regulatory Markets Jun-21 generation & Models & others (1) (2) FL CET1 ratio 11.85 11.70 Note: as indicated by the consolidating su
Slide 15: ESG: supporting the green transition and a more inclusive society
ESG: supporting the green transition of our clients and building a more inclusive society, whilst we remain committed to our climate change goals E Environmental S Social Santander finance for all: providing access, microfinance Ambition to be Net Zero by 2050 and financial education Founding Member
Slide 16: Index
Index 1 2 3 4 Group Business Key Appendix performance areas review takeaways 16
Slide 17: Business and profit growth leveraging geographic diversification
Business and profit growth leveraging our geographic diversification Digital Customer Customer Net operating Underlying Underlying customers loans deposits income att. profit RoTE H1’21 vs. H1’20 (mn) (EUR bn) (EUR bn) (EUR mn) (EUR mn) 15.7 562 579 3,947 1,426 7% Europe +6% +1% +3% +37% +172% +4.5
Slide 18: Spain
Q2 affected by SRF contribution. Otherwise, total income +1% and net operating income +4% QoQ Spain QoQ: fee income rebounded to pre-pandemic levels, ongoing cost control and we continued to strengthen our balance sheet in the face of recovery uncertainty H1’21 profit boosted by net operating income
Slide 19: United Kingdom
Strong revenue improvement driven by margin management (NIM: +12 bps QoQ; +26 bps YoY) and volume growth (mortgages and government-backed business loans) UK Cost reduction and LLP release from improved economic forecast As a result, significant efficiency and profitability improvement, reaching a do
Slide 20: Brazil
Our growth strategy focused on improving customer service, which enabled customer acquisition and loyalty to grow at a faster pace Brazil Profit increased YoY: revenue up (higher volumes and fee income) and lower LLPs Our efforts on increasing productivity were reflected in a better efficiency ratio
Slide 21: USA
Profit grew YoY boosted by net operating income (+23% excluding Puerto Rico and Bluestem portfolio disposals) and significant LLP savings Revenue up YoY driven by lease income, NII (volumes and cost of funding) and fees USA (excluding disposals: NII +8%; fees +14%; total income +17%) Profit up QoQ b
Slide 22: Mexico
The weak economic environment dampened loans in the financial sector YoY. However, early indicators started to show signs of recovery In this context, we increased our customer base (loyal and digital up double-digit), mortgages Mexico and auto loans grew above the sector and continued to change our
Slide 23: Digital Consumer Bank
New lending in H1’21 well above 2020 (+20% YoY) although covid-19 lockdowns had a significant impact in early 2021. Strong activity expected for H2 Digital Profit up YoY favoured by revenue increase and cost of credit improvement. Higher costs Digital Consumer Bank Consumer due to technology investm
Slide 24: Global businesses
Global businesses Corporate & Investment Banking Wealth Management & Insurance Another strong set of results in Q2’21, although the QoQ comparison was affected by the SRF charge and an exceptionally high Q1’21 Commercial flows YTD: Private Banking EUR 5.1 bn; SAM EUR 4.1 bn. Gross written premiums (
Slide 25: Solid progress in H1 (PagoNxt)
Solid progress in H1 Active merchants Total Payments Volume • Getnet Brazil: strong commercial performance and gaining Thousands EUR bn market share (15.5%). Listing expected before year-end1 +24% +53% • LatAm: global franchise expansion and product offerings gathering pace Merchant 1,160 49.4 solut
Slide 26: Corporate Centre
Lower revenue affected by the positive impact of FX hedging in 2020 Corporate Downward trend in operating expenses continued (-4% YoY), driven by Centre streamlining and simplification measures Significant lower provisions due to charges in H1’20 for certain holdings whose valuation was affected by
Slide 27: Index
Index 1 2 3 4 Group Business Key Appendix performance areas review takeaways 27
Slide 28: H1'21 Key takeaways
H1’21 Key takeaways Volume growth and profitability Solid P&L performance improvement Further revenue Revenue Volume growth Loans: Funds: improvement +8% YoY and QoQ +16 bn YoY +64 bn YoY Net operating Efficiency gains income CET1 above target CET1 -159 bps +13% (11-12%) 12.11% Underlying Lower cost
Slide 29: Index
Index 1 2 3 4 Group Business Key Appendix performance areas review takeaways 29
Slide 30: Appendix
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 30
Slide 31: Europe
Accelerating One Santander transformation to deliver superior growth under a more efficient operating model Revenue increased YoY driven by NII (UK and Spain), ALCO sales in Portugal and CIB Europe Strong efficiency improvement as a result of the ongoing optimization plans Cost of credit normalizing
Slide 32: Portugal
Sharp rise in digital customers with higher digital sales penetration Increase in customer loans driven by new lending, mainly in corporates and mortgages Portugal Profit up YoY boosted by ALCO portfolio sales, cost control and lower LLPs Profit decreased QoQ due to ALCO portfolio sales in Q1’21. Fe
Slide 33: Poland
Continued business transformation and launch of new digital products and services enabled us to improve our NPS position to top 3 Poland Net operating income after LLPs up 43% YoY driven by revenue growth (lower rates offset by fees, dividends and trading gains) and reduced LLPs Profit impacted by c
Slide 34: North America
In line with our strategy to increase the weight of the most profitable businesses, the Group announced several transaction proposals in the region (Amherst Pierpont and minorities of SC USA and Mexico) North Strong profit growth YoY boosted by cost of credit improvement in the US, cost control and
Slide 35: South America
Strengthening regional ties in order to continue growing profitably, supported by record customer increase in recent months South Strong rise in loyal (+24%) and digital customers (+20%), reflected in volume increase, with improvements in efficiency and cost of credit America Profit up YoY underpinn
Slide 36: Chile
We continued to make headway with our commercial strategy: demand deposits (+42%), digital customers (+39%), Getnet (c. 28 k PoS) and Santander Life (729 k customers) Chile The increase in SMEs, mortgages and consumer loans was offset by the fall in corporates. Funds growth with better funding mix P
Slide 37: Argentina
Business diversification: we opened the first agribusiness branch in the country; Santander Consumer is focused on used vehicles, as well as other goods and services Argentina Ongoing digital transformation: digital sales (78% of total), Getnet (32 k active merchants) Profit increased YoY boosted by
Slide 38: Uruguay and Andean region
Uruguay High profitability sustained across all countries supported by stronger customer loyalty, leading to greater transactionality and digitalization and Uruguay: profit decreased YoY mainly impacted by lower interest rates Andean region Peru: profit rose YoY boosted by higher revenue and efficie
Slide 39: Appendix
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 39
Slide 40: Retail Banking
Focus on accelerating our digital transformation, through a multi-channel strategy adapting channels to new business trends and customer needs Retail Banking This clear orientation enabled us to rank top 3 in customer satisfaction, measured by NPS, in 7 of our markets QoQ and YoY profit growth due t
Slide 41: Corporate & Investment Banking
Continued strategy execution to strengthen our position as a strategic advisor Corporate & Increased our participation in green and ESG bonds, with a total volume of EUR 6.2 bn SCIB Investment Banking Profit boosted by strong revenue growth, with all products increasing vs. H1’20 mainly driven by GD
Slide 42: Wealth Management & Insurance
Private Banking: continued good activity levels and business growth. Net new money YTD: EUR 5.1 bn. Total customer assets and liabilities +15% YoY Wealth SAM: volumes continued to grow (+9% YoY), both by market movement and by Management positive net sales (EUR 4.1 bn YTD) & Insurance Insurance: gro
Slide 43: Appendix
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 43
Slide 44: Well-funded, diversified, prudent and highly liquid balance sheet
Well-funded, diversified, prudent and highly liquid balance sheet (large % contribution from customer deposits), actively reinforced already strong LCR ratios following covid-19 crisis Liquidity Balance Sheet EUR bn, Jun-21 1,266 1,266 Liquidity Coverage Net Stable Funding Ratio (LCR) Ratio (NSFR) 1
Slide 45: Conservative and decentralized liquidity and funding model
Conservative and decentralized liquidity and funding model EUR 8.8 bn1 issued in public markets in Q2’21 Very manageable maturity profile EUR bn, Jun-21 EUR bn, Jun-21 52.2 Spain2 1.4 9.1 8.0 8.6 8.5 10.4 1.6 6.3 SCF 2.1 2.8 4.0 2.6 2.0 5.1 2021 2022 2023 2024 2025 2026+ 12.9 2.6 2.1 UK 4.2 5.9 7.8
Slide 46: Interest rate risk hedging
Interest rate risk hedging Mostly positive interest rate sensitivity ALCO portfolios reflect our geographic diversification Net interest income sensitivity* to a +/-100 bp parallel shift Distribution of ALCO portfolios by country EUR mn, May-21 %, Jun-21 Other Spain; +100 bps -100 bps Chile; S.Am.;
Slide 47: Issuances YTD against funding plan
Issuances YTD against funding plan 2021 Funding plan and issuances EUR bn, Jun-21 Snr Non-Preferred + Snr Hybrids Covered Bonds TOTAL Plan Issued Plan Issued Plan Issued Plan Issued 1 Santander S.A 8-10 8.1 2-3 3.9 - - 10-13 12.0 SCF 3-4 1.9 - - 0-1 - 3-5 1.9 UK 2.5-3.5 2.6 - - - - 2.5-3.5 2.6 SHUSA
Slide 48: Capital levels exceed minimum regulatory requirements
Santander’s capital levels, both phased-in and fully loaded, exceed minimum regulatory requirements SREP capital requirements and MDA* Assumed capital requirements (fully-loaded) Jun-21 Jun-21 15.82% +281 bps T2 15.42% >14.5 2.15% 13.01% AT1 +241 bps T2 1.56% 13.01% 2.21% 2.00% T2 2.38% AT1 T2 1.51%
Slide 49: TLAC ratios for the Resolution Group
TLAC ratios for the Resolution Group headed by Banco Santander, S.A. TLAC Ratio EUR mn 30 September 2020 31 December 2020 31 March 2021 30 June 2021 E Own Funds 86,191 86,836 86,879 86,148 of which: Common Equity Tier 1 (CET1) capital 70,829 69,451 69,594 69,043 of which: Additonal Tier 1 (AT1) capi
Slide 50: Appendix
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 50
Slide 51: Yield on loans (%)
Yield on loans (%) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Europe 2.30 2.12 2.06 2.09 2.08 2.04 Spain 1.99 1.86 1.82 1.85 1.85 1.80 United Kingdom 2.49 2.35 2.32 2.36 2.33 2.32 Portugal 1.63 1.57 1.57 1.51 1.46 1.40 Poland 4.04 3.34 2.95 2.89 2.91 2.91 North America 8.94 7.85 7.82 7.70 7.78 7.61 US 7.76
Slide 52: Cost of deposits (%)
Cost of deposits (%) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Europe 0.36 0.25 0.14 0.12 0.11 0.08 Spain 0.06 0.04 0.04 0.04 0.04 0.03 United Kingdom 0.69 0.52 0.29 0.23 0.21 0.15 Portugal 0.08 0.06 0.05 0.03 0.02 0.02 Poland 0.65 0.42 0.14 0.09 0.05 0.03 North America 1.57 1.15 0.90 0.74 0.64 0.61 US 0.
Slide 53: Appendix
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 53
Slide 54: 92% of moratoria has expired
92% of moratoria has expired, with only 5% at stage 3. From the 8% still active, 71% is secured and most of it is in Europe Distribution of loans subject to moratoria Main units Active moratoria as of 30th Jun 21, EUR bn Active moratoria as of 30th Jun 21, EUR bn Mortgages 4 4.2 71% 6.2 Consumer 0 0
Slide 55: Stage coverage
Stage coverage Exposure ¹ Coverage Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Stage 1 891 878 862 864 885 904 0.6% 0.6% 0.6% 0.5% 0.5% 0.5% Stage 2 53 61 60 69 70 70 8.2% 7.7% 8.8% 8.5% 8.1% 8.2% Stage 3 33 33 31 32 32 33 40.8% 41.1% 43.3% 43.4% 42.5% 42.2% (
Slide 56: NPL ratio (%)
NPL ratio (%) Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Europe 3.37 3.41 3.29 3.34 3.26 3.30 Spain 6.88 6.55 5.98 6.23 6.18 6.22 United Kingdom 0.99 1.10 1.33 1.24 1.35 1.30 Portugal 4.56 4.43 4.25 3.89 3.84 3.71 Poland 4.29 4.57 4.58 4.74 4.82 4.58 North America 2.02 1.73 1.96 2.23 2.39 2.28 US 2.0
Slide 57: Total coverage ratio (%)
Total coverage ratio (%) Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Europe 47.0 46.5 48.7 50.3 50.0 48.4 Spain 44.6 43.3 46.0 47.1 47.2 46.0 United Kingdom 39.7 42.8 41.6 44.7 40.5 37.4 Portugal 59.0 60.9 64.3 66.5 69.2 73.0 Poland 68.1 69.0 70.8 70.7 70.3 72.4 North America 170.1 206.5 201.6 182.6 1
Slide 58: Credit impaired loans and loan-loss allowances
Credit impaired loans and loan-loss allowances. Breakdown by operating areas. June 2021 Credit impaired loans Loan-loss allowances DCB, 7.7% DCB, 11.9% Other South America, 0.5% Argentina, 0.5% Other South America, 0.7% Chile, 6.1% Spain, 26.6% Argentina, 1.1% Spain, 42.0% Chile, 5.3% Brazil, 12.0%
Slide 59: Cost of credit (%)
Cost of credit (%) Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Europe 0.36 0.41 0.48 0.58 0.51 0.49 Spain 0.64 0.68 0.80 1.01 0.91 1.00 United Kingdom 0.14 0.22 0.26 0.27 0.21 0.09 Portugal 0.23 0.30 0.42 0.51 0.38 0.41 Poland 0.88 0.96 0.99 1.10 1.02 0.88 North America 3.02 3.21 3.07 2.92 2.34 1.67 U
Slide 60: Appendix
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 60
Slide 61: Santander Responsible Banking goals
Santander Responsible Banking goals Ambition to be net zero by 2050 With the first decarbonization targets: ▪ Aligning our power generation portfolio to Paris by 2030 ▪ Stop providing financial services to power generation clients with a revenue dependency on thermal coal of over 10% by 2030 ▪ Reduc
Slide 62: Appendix
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 62
Slide 63: Santander Group (EUR mn)
SANTANDER GROUP (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 8,487 7,715 7,773 8,019 7,956 8,240 16,202 16,196 Net fee income 2,853 2,283 2,423 2,456 2,548 2,621 5,136 5,169 Gains (losses) on financial transactions and other 474 706 891 520 886 444 1,180 1,330 Total i
Slide 64: Santander Group (Constant EUR mn)
SANTANDER GROUP (Constant EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 7,604 7,444 7,782 8,127 7,993 8,203 15,048 16,196 Net fee income 2,555 2,218 2,410 2,470 2,559 2,610 4,773 5,169 Gains (losses) on financial transactions and other 455 652 885 516 888 442 1,107 1,33
Slide 65: Europe (EUR mn)
Europe (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 2,378 2,330 2,534 2,670 2,645 2,751 4,708 5,396 Net fee income 1,128 942 961 968 1,072 1,086 2,071 2,157 Gains (losses) on financial transactions and other 212 125 388 37 432 106 337 538 Total income 3,718 3,398 3,88
Slide 66: Europe (Constant EUR mn)
Europe (Constant EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 2,356 2,343 2,565 2,706 2,652 2,744 4,699 5,396 Net fee income 1,119 943 964 971 1,073 1,084 2,062 2,157 Gains (losses) on financial transactions and other 213 122 388 35 432 106 335 538 Total income 3,688 3
Slide 67: Spain (EUR mn)
Spain (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 925 931 1,034 1,067 1,019 1,015 1,856 2,034 Net fee income 643 535 562 573 587 617 1,178 1,204 Gains (losses) on financial transactions and other 220 96 204 (8) 178 62 316 240 Total income 1,789 1,562 1,800 1,632 1,78
Slide 68: United Kingdom (EUR mn)
United Kingdom (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 820 796 905 983 1,001 1,100 1,616 2,100 Net fee income 190 94 115 96 120 117 284 238 Gains (losses) on financial transactions and other (3) 1 14 (31) (10) (6) (2) (16) Total income 1,007 891 1,034 1,048 1,111
Slide 69: United Kingdom (GBP mn)
United Kingdom (GBP mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 706 706 818 885 874 948 1,412 1,823 Net fee income 163 85 104 87 105 101 248 206 Gains (losses) on financial transactions and other (2) 1 13 (27) (8) (5) (2) (14) Total income 867 791 934 945 971 1,044 1,659
Slide 70: Portugal (EUR mn)
Portugal (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 202 197 193 195 193 192 399 384 Net fee income 101 90 94 103 99 110 191 210 Gains (losses) on financial transactions and other 47 30 25 19 135 1 77 136 Total income 350 317 312 317 427 303 668 730 Operating expense
Slide 71: Poland (EUR mn)
Poland (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 296 251 246 243 240 250 547 490 Net fee income 116 104 112 120 127 126 220 253 Gains (losses) on financial transactions and other (48) 23 35 24 (10) 41 (25) 31 Total income 365 377 394 388 357 417 742 774 Operating e
Slide 72: Poland (PLN mn)
Poland (PLN mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 1,279 1,134 1,095 1,096 1,090 1,131 2,413 2,221 Net fee income 503 467 498 541 576 573 970 1,149 Gains (losses) on financial transactions and other (206) 95 156 109 (46) 187 (111) 141 Total income 1,576 1,696 1,749 1
Slide 73: Other Europe (EUR mn)
Other Europe (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 134 155 155 182 192 195 289 387 Net fee income 78 120 78 75 138 115 198 253 Gains (losses) on financial transactions and other (5) (24) 109 32 139 8 (29) 147 Total income 207 251 343 290 469 318 458 787 Operati
Slide 74: Other Europe (Constant EUR mn)
Other Europe (Constant EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 133 151 155 182 192 195 284 387 Net fee income 75 118 78 75 138 114 193 253 Gains (losses) on financial transactions and other (6) (25) 109 32 139 9 (31) 147 Total income 202 244 342 289 469 318 445 78
Slide 75: North America (EUR mn)
North America (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 2,261 2,079 2,076 2,055 2,005 2,010 4,339 4,015 Net fee income 464 405 413 402 451 410 869 861 Gains (losses) on financial transactions and other 216 227 194 242 313 299 443 612 Total income 2,941 2,711 2,683
Slide 76: North America (Constant EUR mn)
North America (Constant EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 2,057 1,993 2,076 2,047 2,009 2,006 4,049 4,015 Net fee income 422 396 419 401 453 408 818 861 Gains (losses) on financial transactions and other 198 211 189 237 313 299 409 612 Total income 2,677 2,5
Slide 77: United States (EUR mn)
United States (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 1,462 1,429 1,406 1,348 1,337 1,326 2,891 2,663 Net fee income 250 215 218 206 241 191 465 432 Gains (losses) on financial transactions and other 217 157 206 247 324 318 374 641 Total income 1,929 1,801 1,830
Slide 78: United States (USD mn)
United States (USD mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 1,612 1,573 1,644 1,608 1,611 1,599 3,185 3,210 Net fee income 275 237 255 247 290 231 512 521 Gains (losses) on financial transactions and other 239 173 240 291 390 383 412 773 Total income 2,126 1,983 2,139
Slide 79: Mexico (EUR mn)
Mexico (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 798 650 669 707 667 684 1,448 1,352 Net fee income 211 185 189 188 204 210 396 414 Gains (losses) on financial transactions and other (2) 70 (10) (4) (6) (16) 68 (23) Total income 1,007 905 848 891 865 878 1,912 1,74
Slide 80: Mexico (MXN mn)
Mexico (MXN mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 17,484 16,706 17,310 17,322 16,360 16,503 34,190 32,863 Net fee income 4,617 4,719 4,868 4,596 4,995 5,077 9,336 10,072 Gains (losses) on financial transactions and other (51) 1,658 (194) (91) (156) (399) 1,607 (556)
Slide 81: Other North America (EUR mn)
Other North America (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income (0) 0 0 0 0 0 0 0 Net fee income 4 5 7 8 7 8 9 14 Gains (losses) on financial transactions and other 2 (1) (2) (0) (5) (2) 1 (7) Total income 5 4 6 8 2 5 10 7 Operating expenses (6) (6) (13) (22) (28) (3
Slide 82: Other North America (Constant EUR mn)
Other North America (Constant EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income (0) 0 0 0 0 0 0 0 Net fee income 4 5 7 8 7 8 9 14 Gains (losses) on financial transactions and other 2 (1) (2) (0) (5) (2) 1 (7) Total income 5 4 6 8 2 5 10 7 Operating expenses (6) (6) (13) (22
Slide 83: South America (EUR mn)
South America (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 3,065 2,606 2,486 2,566 2,575 2,760 5,671 5,334 Net fee income 1,077 779 848 885 842 928 1,856 1,770 Gains (losses) on financial transactions and other 26 310 149 70 122 85 337 207 Total income 4,169 3,695 3,4
Slide 84: South America (Constant EUR mn)
South America (Constant EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 2,408 2,395 2,454 2,635 2,598 2,736 4,803 5,334 Net fee income 832 722 826 896 850 920 1,553 1,770 Gains (losses) on financial transactions and other 24 275 147 72 125 82 300 207 Total income 3,264 3,
Slide 85: Brazil (EUR mn)
Brazil (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 2,270 1,813 1,756 1,786 1,780 1,919 4,083 3,700 Net fee income 869 614 664 677 632 698 1,483 1,330 Gains (losses) on financial transactions and other (3) 224 114 82 109 64 221 173 Total income 3,137 2,651 2,534 2,544
Slide 86: Brazil (BRL mn)
Brazil (BRL mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 11,100 10,725 11,066 11,446 11,744 12,228 21,825 23,972 Net fee income 4,250 3,679 4,167 4,324 4,169 4,450 7,929 8,619 Gains (losses) on financial transactions and other (14) 1,196 703 538 718 402 1,182 1,120 Total i
Slide 87: Chile (EUR mn)
Chile (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 448 425 420 494 497 511 873 1,009 Net fee income 92 74 74 94 95 96 166 190 Gains (losses) on financial transactions and other 12 85 38 6 22 30 98 53 Total income 553 584 532 594 614 637 1,137 1,252 Operating expenses
Slide 88: Chile (CLP mn)
Chile (CLP mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 397,015 384,057 383,394 447,669 433,780 441,721 781,072 875,500 Net fee income 81,770 67,170 67,421 85,452 82,698 82,631 148,940 165,329 Gains (losses) on financial transactions and other 10,853 76,628 35,003 5,316 19
Slide 89: Argentina (EUR mn)
Argentina (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 241 261 218 192 204 235 502 440 Net fee income 76 56 70 71 74 87 132 161 Gains (losses) on financial transactions and other 1 (8) (14) (36) (16) (22) (6) (38) Total income 318 310 274 226 262 301 628 563 Operating
Slide 90: Argentina (ARS mn)
Argentina (ARS mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 16,991 22,846 24,646 29,613 22,035 27,866 39,837 49,901 Net fee income 5,327 5,132 7,611 10,109 7,977 10,342 10,459 18,318 Gains (losses) on financial transactions and other 89 (595) (1,349) (4,047) (1,686) (2,575
Slide 91: Other South America (EUR mn)
Other South America (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 106 107 91 94 93 93 213 186 Net fee income 40 34 40 43 41 46 74 88 Gains (losses) on financial transactions and other 16 9 11 19 7 13 24 19 Total income 162 149 143 157 141 152 311 293 Operating expenses
Slide 92: Other South America (Constant EUR mn)
Other South America (Constant EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 88 96 88 92 92 95 184 186 Net fee income 35 31 39 42 41 47 66 88 Gains (losses) on financial transactions and other 13 8 10 19 7 13 21 19 Total income 136 135 136 152 139 154 271 293 Operating e
Slide 93: Digital Consumer Bank (EUR mn)
Digital Consumer Bank (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 1,088 1,054 1,048 1,073 1,056 1,075 2,142 2,130 Net fee income 192 163 211 205 188 206 356 395 Gains (losses) on financial transactions and other 11 (4) 50 74 59 21 7 80 Total income 1,291 1,214 1,309
Slide 94: Digital Consumer Bank (Constant EUR mn)
Digital Consumer Bank (Constant EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 1,087 1,068 1,058 1,084 1,058 1,073 2,154 2,130 Net fee income 192 164 211 205 189 206 356 395 Gains (losses) on financial transactions and other 11 (4) 51 75 59 21 7 80 Total income 1,290 1,2
Slide 95: Corporate Centre (EUR mn)
Corporate Centre (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income (304) (354) (371) (345) (324) (355) (658) (679) Net fee income (9) (6) (11) (3) (5) (8) (15) (13) Gains (losses) on financial transactions and other 9 47 110 96 (41) (67) 56 (107) Total income (304) (313) (
Slide 96: Retail Banking (EUR mn)
Retail Banking (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 8,004 7,272 7,280 7,500 7,472 7,766 15,276 15,238 Net fee income 2,058 1,536 1,707 1,685 1,709 1,753 3,595 3,462 Gains (losses) on financial transactions and other 108 263 444 165 355 292 371 647 Total income
Slide 97: Retail Banking (Constant EUR mn)
Retail Banking (Constant EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 7,201 7,035 7,296 7,596 7,508 7,730 14,237 15,238 Net fee income 1,833 1,492 1,699 1,695 1,717 1,744 3,326 3,462 Gains (losses) on financial transactions and other 136 238 428 144 356 291 375 647 Tot
Slide 98: Corporate & Investment Banking (EUR mn)
Corporate & Investment Banking (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 677 705 771 765 720 739 1,382 1,460 Net fee income 402 405 360 375 466 434 807 900 Gains (losses) on financial transactions and other 217 300 242 113 469 110 517 579 Total income 1,297 1,410 1
Slide 99: Corporate & Investment Banking (Constant EUR mn)
Corporate & Investment Banking (Constant EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 607 674 765 775 721 738 1,281 1,460 Net fee income 365 395 356 380 467 433 760 900 Gains (losses) on financial transactions and other 181 271 251 128 470 108 452 579 Total income 1,15
Slide 100: Wealth Management & Insurance (EUR mn)
Wealth Management & Insurance (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 109 93 92 100 88 91 202 179 Net fee income 308 269 279 296 297 316 578 612 Gains (losses) on financial transactions and other 133 99 102 149 117 113 232 229 Total income 550 462 474 545 502 519
Slide 101: Wealth Management & Insurance (Constant EUR mn)
Wealth Management & Insurance (Constant EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 100 89 92 101 88 91 188 179 Net fee income 290 263 278 297 297 315 553 612 Gains (losses) on financial transactions and other 122 98 103 149 117 112 220 229 Total income 512 450 473 54
Slide 102: PagoNxt (EUR mn)
PagoNxt (EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 0 (1) 0 (0) (1) (1) (0) (2) Net fee income 94 78 88 103 81 127 171 209 Gains (losses) on financial transactions and other 7 (3) (8) (2) (14) (4) 4 (17) Total income 101 75 81 100 67 123 176 189 Operating expenses (9
Slide 103: PagoNxt (Constant EUR mn)
PagoNxt (Constant EUR mn) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 H1'20 H1'21 Net interest income 0 (0) 0 (0) (1) (1) (0) (2) Net fee income 75 74 88 102 82 126 150 209 Gains (losses) on financial transactions and other 7 (3) (7) (2) (14) (4) 4 (17) Total income 82 71 81 100 68 122 154 189 Operating exp
Slide 104: Appendix
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 104
Slide 105: Glossary - Acronyms
Glossary - Acronyms ❑ AFS: Available for sale ❑ LLPs: Loan-loss provisions ❑ RoRWA: Return on risk-weighted assets ❑ AuM: Assets under Management ❑ M/LT: Medium- and long-term ❑ RoTE: Return on tangible equity ❑ BFG: Deposit Guarantee Fund in Poland ❑ mn: million ❑ RWA: Risk-weighted assets ❑ bn: Bi
Slide 106: 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 asse
Slide 107: 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: