Banco Santander, S.a. · BME:SAN
Banco Santander — H1 2023 Earnings Presentation
75 slides from Banco Santander's earnings presentation, Jul 26, 2023
Slide 1: Form 6-K Report of Foreign Issuer
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 July, 2023 Commission File Number: 001-12518 Banco Santander, S.A. (Exact name of registrant as specified in its chart
Slide 2: Table of Contents
BANCO SANTANDER, S.A. ________________________ TABLE OF CONTENTS Item 1. January - June 2023 Earnings presentation (Supplementary information)
Slide 3: Earnings presentation: Supplementary information H1'23
Earnings presentation: Supplementary information — H1’23 26 July 2023
Slide 4: Important information
2 Important information Non-IFRS and alternative performance measures This presentation contains financial information prepared according to International Financial Reporting Standards (IFRS) and taken from our consolidated financial statements, as well as alternative performance measures (APMs) as
Slide 5: Important information
3 Important information The following important factors (and others described elsewhere in this presentation and other risk factors, uncertainties or contingencies detailed in our most recent Form 20-F and subsequent 6-Ks filed with, or furnished to, the SEC), as well as other unknown or unpredictab
Slide 6: Supplementary information
4 Supplementary information Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Quarterly income statements Glossary
Slide 7: Capital levels exceed minimum regulatory requirements
5 Santander’s capital levels, both phased-in and fully loaded, exceed minimum regulatory requirements 4.50% 12.24% 11-12% 0.89% 2.50% 1.00% CCyB, 0.25% 1.80% 1.40% 1.50%2.40% 2.29% 2.00% 13.33% 15.93% >15% Assumed regulatory requirement 2023 Group ratios Jun-23 Medium-term target ratios Assumed capi
Slide 8: Diversified bond portfolio represents just 7% of total assets
6 Diversified bond portfolio represents just 7% of total assets Bond portfolio %, Jun-23 ALCO IRRBB €87bn Liquidity portfolio €29bn €116bn SCF 5% Spain 22% UK 4% Poland 11% Portugal 2%US 13% Mexico 16% Brazil 11% Chile 11% Other South America 5% €116bn o/w HTC €63bn (54%) • Bond portfolio represents
Slide 9: Conservative and decentralized liquidity and funding model
7 Conservative and decentralized liquidity and funding model Very manageable maturity profile€23bn1 issued in public markets in H1’23 (1) Data includes public issuances from all units with period-average exchange rates. Excludes securitizations. (2) Includes Banco Santander, S.A. and Santander Inter
Slide 10: H1'23 issuances against funding plan
8 H1’23 issuances against funding plan Execution of 2023 funding plan Fulfilling the 1.5% AT1 and 2% T2 buffers subject to RWA growth MREL & TLAC ratios above regulatory requirements Liquidity position remains solid, with LCR and NFSR above minimum requirements and ample liquidity buffers Fr
Slide 11: TLAC/MREL for the Resolution Group
9 TLAC/MREL for the Resolution Group headed by Banco Santander, S.A. MREL Jun-23(e)TLAC Jun-23(e) Note: Figures applying the IFRS 9 transitional arrangements. Provisional data. (1) TLAC RWAs are €311bn and leverage exposure (LE) is €874bn. MREL RWAs are €406bn and leverage exposure is €936bn. (2) MR
Slide 12: Well-funded, diversified, prudent and highly liquid balance sheet
10 Well-funded, diversified, prudent and highly liquid balance sheet (large % contribution from customer deposits), reflected in solid liquidity ratios Liquidity Balance Sheet Note: Liquidity balance sheet for management purposes (net of trading derivatives and interbank balances). (1) Provisional d
Slide 13: Supplementary information
11 Supplementary information Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Quarterly income statements Glossary
Slide 14: Yield on loans (%)
12 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Europe 2.09 2.23 2.46 2.87 3.45 3.82 Spain 1.72 1.77 1.96 2.46 3.31 3.80 United Kingdom 2.25 2.33 2.46 2.71 2.94 3.16 Portugal 1.46 1.48 1.69 2.37 3.33 4.03 Poland 4.64 6.22 7.28 7.64 8.26 8.42 North America 7.32 7.62 8.13 8.75 9.46 10.08 US 6.25 6.39 6.89 7.35
Slide 15: Cost of deposits (%)
13 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Europe 0.08 0.14 0.25 0.53 0.81 1.03 Spain 0.05 0.05 0.09 0.22 0.53 0.72 United Kingdom 0.12 0.21 0.35 0.79 1.10 1.37 Portugal 0.01 0.02 0.02 0.04 0.14 0.26 Poland 0.16 0.49 1.00 1.58 1.75 1.89 North America 0.73 0.88 1.22 1.87 2.68 3.08 US 0.09 0.22 0.50 1.07
Slide 16: Supplementary information
14 Supplementary information Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Quarterly income statements Glossary
Slide 17: Stage coverage
15 Exposure ¹ Coverage Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Stage 1 967 998 1,030 1,004 1,005 1,011 0.5% 0.5% 0.5% 0.4% 0.4% 0.4% Stage 2 68 66 70 69 72 75 8.0% 8.5% 7.7% 7.7% 7.4% 7.2% Stage 3 36 34 36 35 34 35 41.0% 40.1% 41.0% 40.8% 40.1% 41.0% Stage
Slide 18: NPL ratio (%)
16 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Europe 3.01 2.63 2.58 2.37 2.35 2.35 Spain 4.47 3.83 3.69 3.27 3.19 3.11 United Kingdom 1.42 1.17 1.16 1.21 1.27 1.32 Portugal 3.42 3.33 3.03 2.99 3.05 3.09 Poland 3.50 3.45 3.63 3.80 3.66 3.74 North America 2.83 2.71 2.79 3.03 2.95 3.23 US 2.75 2.64 2.92
Slide 19: NPL coverage ratio (%)
17 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Europe 49.1 50.2 49.7 51.8 51.2 51.1 Spain 50.4 49.4 49.3 51.0 50.2 50.7 United Kingdom 26.1 32.9 32.4 33.8 33.1 32.0 Portugal 72.8 74.3 76.3 79.3 80.3 81.8 Poland 78.5 76.0 74.8 74.0 75.2 74.0 North America 110.5 111.4 102.7 93.3 94.9 90.0 US 122.2 121.0
Slide 20: Credit impaired loans and loan-loss allowances by operating area
18 Spain, 18.8% UK, 4.5% Portugal, 4.3% Poland, 4.3% Other Europe, 0.1% US, 17.3% Mexico, 5.8% Brazil, 26.8% Chile, 5.8% Argentina, 0.9% Other South America, 0.9% Digital Consumer Bank, 10.4% Spain, 25.9% UK, 9.8% Portugal, 3.7% Poland, 4.0% Other Europe, 0.3% US, 14.1% Mexico, 3.8% Brazil, 22.6% Ch
Slide 21: Cost of risk (%)
19 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Europe 0.37 0.37 0.36 0.39 0.42 0.42 Spain 0.88 0.79 0.71 0.61 0.62 0.62 United Kingdom (0.08) (0.02) 0.02 0.12 0.12 0.11 Portugal 0.03 (0.05) (0.12) 0.04 0.06 0.10 Poland 0.65 0.95 1.07 1.43 1.71 1.87 North America 0.93 1.09 1.12 1.49 1.62 1.70 US 0.49 0
Slide 22: Supplementary information
20 Supplementary information Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Quarterly income statements Glossary
Slide 23: Grupo Santander (EUR mn)
21 GRUPO SANTANDER (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 8,855 9,554 10,051 10,159 10,185 10,735 +5.4% 18,409 20,920 +13.6% Net fee income 2,812 3,040 3,015 2,923 3,043 3,060 +0.6% 5,852 6,10
Slide 24: Grupo Santander (Constant EUR mn)
22 GRUPO SANTANDER (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 8,968 9,243 9,618 10,138 10,149 10,771 +6.1% 18,211 20,920 +14.9% Net fee income 2,848 2,952 2,910 2,950 3,040 3,063 +0.8% 5,
Slide 25: Europe (EUR mn)
23 Europe (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 2,839 2,981 3,179 3,567 3,597 3,968 +10.3% 5,820 7,565 +30.0% Net fee income 1,154 1,162 1,125 1,051 1,168 1,076 -7.9% 2,316 2,244 -3.1% Gains
Slide 26: Europe (Constant EUR mn)
24 Europe (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 2,786 2,943 3,158 3,565 3,617 3,947 +9.1% 5,729 7,565 +32.0% Net fee income 1,151 1,159 1,125 1,052 1,171 1,073 -8.4% 2,309 2,244 -2.8
Slide 27: Spain (EUR mn)
25 Spain (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 998 1,017 1,119 1,405 1,460 1,701 +16.5% 2,015 3,161 +56.9% Net fee income 745 730 697 646 752 661 -12.0% 1,475 1,413 -4.3% Gains (losses) on fi
Slide 28: United Kingdom (EUR mn)
26 United Kingdom (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 1,192 1,227 1,277 1,297 1,283 1,300 +1.3% 2,418 2,583 +6.8% Net fee income 92 110 93 95 83 84 +2.1% 202 167 -17.3% Gains (losses) on fi
Slide 29: United Kingdom (Constant EUR mn)
27 United Kingdom (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 1,138 1,187 1,246 1,286 1,293 1,290 -0.2% 2,325 2,583 +11.1% Net fee income 88 106 91 94 83 84 +0.6% 194 167 -14.0% Gains (los
Slide 30: United Kingdom (GBP mn)
28 United Kingdom (GBP mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 997 1,040 1,092 1,127 1,133 1,130 -0.2% 2,037 2,263 +11.1% Net fee income 77 93 80 82 73 73 +0.6% 170 146 -14.0% Gains (losses) on fina
Slide 31: Portugal (EUR mn)
29 Portugal (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 170 171 175 231 261 314 +20.3% 340 575 +68.8% Net fee income 122 123 121 118 124 111 -10.2% 245 235 -3.9% Gains (losses) on financial transac
Slide 32: Poland (EUR mn)
30 Poland (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 407 486 530 552 586 623 +6.4% 894 1,209 +35.3% Net fee income 138 130 135 125 145 144 -0.7% 268 289 +7.8% Gains (losses) on financial transacti
Slide 33: Poland (Constant EUR mn)
31 Poland (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 407 489 543 563 597 612 +2.6% 896 1,209 +34.9% Net fee income 138 131 139 128 148 141 -4.3% 269 289 +7.5% Gains (losses) on financial
Slide 34: Poland (PLN mn)
32 Poland (PLN mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 1,881 2,261 2,510 2,602 2,759 2,830 +2.6% 4,142 5,589 +34.9% Net fee income 637 605 641 591 682 653 -4.3% 1,242 1,335 +7.5% Gains (losses) on f
Slide 35: Other Europe (EUR mn)
33 Other Europe (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 72 80 77 83 7 30 +343.8% 152 37 -75.8% Net fee income 56 69 79 68 65 75 +15.3% 126 140 +11.9% Gains (losses) on financial transactions an
Slide 36: Other Europe (Constant EUR mn)
34 Other Europe (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 74 79 74 80 6 30 +374.5% 153 37 -75.9% Net fee income 58 69 77 66 65 75 +16.0% 126 140 +11.2% Gains (losses) on financial transa
Slide 37: North America (EUR mn)
35 North America (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 2,131 2,352 2,619 2,603 2,448 2,483 +1.4% 4,483 4,931 +10.0% Net fee income 443 494 513 508 521 555 +6.5% 937 1,077 +14.9% Gains (losses
Slide 38: North America (Constant EUR mn)
36 North America (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 2,314 2,407 2,548 2,544 2,458 2,474 +0.6% 4,721 4,931 +4.4% Net fee income 493 516 510 505 526 550 +4.5% 1,009 1,077 +6.7% Gain
Slide 39: United States (EUR mn)
37 United States (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 1,378 1,499 1,669 1,594 1,465 1,436 -2.0% 2,877 2,901 +0.8% Net fee income 197 198 194 183 190 200 +5.7% 394 390 -1.1% Gains (losses) on
Slide 40: United States (Constant EUR mn)
38 United States (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 1,431 1,478 1,558 1,506 1,455 1,446 -0.6% 2,909 2,901 -0.3% Net fee income 204 194 179 173 188 202 +7.1% 399 390 -2.2% Gains (l
Slide 41: United States (USD mn)
39 United States (USD mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 1,546 1,597 1,684 1,627 1,572 1,562 -0.6% 3,143 3,134 -0.3% Net fee income 221 210 193 186 203 218 +7.1% 431 421 -2.2% Gains (losses) on
Slide 42: Mexico (EUR mn)
40 Mexico (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 753 853 950 1,009 983 1,045 +6.3% 1,606 2,027 +26.2% Net fee income 245 283 303 309 320 344 +7.5% 529 663 +25.5% Gains (losses) on financial tr
Slide 43: Mexico (Constant EUR mn)
41 Mexico (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 883 930 990 1,038 1,002 1,025 +2.2% 1,812 2,027 +11.9% Net fee income 287 309 314 316 326 337 +3.4% 596 663 +11.3% Gains (losses) on f
Slide 44: Mexico (MXN mn)
42 Mexico (MXN mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 17,319 18,241 19,417 20,360 19,669 20,110 +2.2% 35,560 39,779 +11.9% Net fee income 5,641 6,061 6,170 6,210 6,400 6,619 +3.4% 11,703 13,019 +11
Slide 45: Other North America (EUR mn)
43 Other North America (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 0 (0) (0) 0 0 3 — 0 3 — Net fee income 1 13 17 16 12 11 -7.9% 14 23 +66.0% Gains (losses) on financial transactions and other 1 4
Slide 46: Other North America (Constant EUR mn)
44 Other North America (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 0 (0) (0) 0 0 3 — 0 3 — Net fee income 1 13 17 16 12 11 -7.9% 14 23 +66.0% Gains (losses) on financial transactions and o
Slide 47: South America (EUR mn)
45 South America (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 3,037 3,390 3,411 3,141 3,163 3,314 +4.8% 6,427 6,477 +0.8% Net fee income 1,013 1,162 1,174 1,165 1,166 1,229 +5.4% 2,175 2,395 +10.1%
Slide 48: South America (Constant EUR mn)
46 South America (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 3,042 3,081 3,088 3,192 3,098 3,379 +9.0% 6,124 6,477 +5.8% Net fee income 1,003 1,057 1,074 1,195 1,154 1,241 +7.5% 2,060 2,39
Slide 49: Brazil (EUR mn)
47 Brazil (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 2,143 2,279 2,251 2,229 2,105 2,180 +3.5% 4,421 4,285 -3.1% Net fee income 743 857 812 884 817 858 +5.1% 1,600 1,675 +4.7% Gains (losses) on fi
Slide 50: Brazil (Constant EUR mn)
48 Brazil (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 2,287 2,174 2,165 2,182 2,141 2,144 +0.1% 4,461 4,285 -3.9% Net fee income 793 822 780 866 831 844 +1.6% 1,614 1,675 +3.7% Gains (loss
Slide 51: Brazil (BRL mn)
49 Brazil (BRL mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 12,527 11,912 11,859 11,953 11,731 11,745 +0.1% 24,439 23,476 -3.9% Net fee income 4,342 4,501 4,275 4,746 4,550 4,625 +1.6% 8,844 9,175 +3.7%
Slide 52: Chile (EUR mn)
50 Chile (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 483 554 402 332 371 356 -3.9% 1,038 727 -29.9% Net fee income 112 110 120 127 153 163 +6.6% 222 316 +42.8% Gains (losses) on financial transacti
Slide 53: Chile (Constant EUR mn)
51 Chile (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 503 573 432 358 371 357 -3.8% 1,076 727 -32.4% Net fee income 116 113 128 135 153 163 +6.8% 230 316 +37.8% Gains (losses) on financial
Slide 54: Chile (CLP mn)
52 Chile (CLP mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 437,644 498,964 376,457 311,342 322,790 310,631 -3.8% 936,608 633,420 -32.4% Net fee income 101,410 98,614 111,094 117,979 133,249 142,289 +6.8%
Slide 55: Argentina (EUR mn)
53 Argentina (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 300 432 616 431 532 606 +13.9% 732 1,138 +55.5% Net fee income 121 143 182 97 137 145 +5.7% 264 282 +6.9% Gains (losses) on financial transa
Slide 56: Argentina (Constant EUR mn)
54 Argentina (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 132 210 354 505 431 707 +63.8% 342 1,138 +232.7% Net fee income 53 70 107 136 111 171 +53.8% 123 282 +128.8% Gains (losses) on fina
Slide 57: Argentina (ARS mn)
55 Argentina (ARS mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 36,978 58,765 99,007 141,515 120,749 197,821 +63.8% 95,742 318,570 +232.7% Net fee income 14,875 19,625 29,856 38,139 31,111 47,835 +53.8% 3
Slide 58: Other South America (EUR mn)
56 Other South America (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 111 125 142 150 154 172 +11.4% 236 327 +38.3% Net fee income 38 52 62 58 59 62 +5.6% 90 122 +34.9% Gains (losses) on financial tra
Slide 59: Other South America (Constant EUR mn)
57 Other South America (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 121 124 137 147 155 171 +10.4% 245 327 +33.2% Net fee income 41 52 60 57 59 62 +4.3% 93 122 +31.1% Gains (losses) on fina
Slide 60: Digital Consumer Bank (EUR mn)
58 Digital Consumer Bank (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 1,020 1,012 1,000 990 1,029 1,011 -1.7% 2,032 2,040 +0.4% Net fee income 206 219 204 215 191 203 +6.4% 425 394 -7.2% Gains (loss
Slide 61: Digital Consumer Bank (Constant EUR mn)
59 Digital Consumer Bank (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 997 992 982 980 1,027 1,013 -1.3% 1,989 2,040 +2.6% Net fee income 205 218 203 214 191 203 +6.4% 423 394 -6.8% Gains (l
Slide 62: Corporate Centre (EUR mn)
60 Corporate Centre (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income (172) (181) (157) (142) (52) (42) -19.2% (353) (94) -73.5% Net fee income (3) 2 (2) (16) (3) (3) -1.1% (1) (7) — Gains (losses) on fi
Slide 63: Retail Banking (EUR mn)
61 Retail Banking (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 8,112 8,635 9,058 9,050 8,977 9,524 +6.1% 16,747 18,501 +10.5% Net fee income 1,807 1,982 1,968 1,896 1,901 1,965 +3.4% 3,789 3,865 +2.
Slide 64: Retail Banking (Constant EUR mn)
62 Retail Banking (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 8,229 8,383 8,709 9,015 8,961 9,540 +6.5% 16,612 18,501 +11.4% Net fee income 1,823 1,918 1,896 1,919 1,898 1,967 +3.6% 3,742
Slide 65: Corporate & Investment Banking (EUR mn)
63 Corporate & Investment Banking (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 783 929 916 919 838 774 -7.6% 1,712 1,612 -5.8% Net fee income 529 500 489 464 619 554 -10.5% 1,029 1,172 +14.0% Gains
Slide 66: Corporate & Investment Banking (Constant EUR mn)
64 Corporate & Investment Banking (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 779 875 840 935 818 794 -2.9% 1,654 1,612 -2.6% Net fee income 532 484 471 468 617 555 -10.1% 1,017 1,172 +15.
Slide 67: Wealth Management & Insurance (EUR mn)
65 Wealth Management & Insurance (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 131 167 227 322 413 456 +10.5% 298 869 +191.8% Net fee income 322 333 328 309 309 317 +2.7% 655 626 -4.5% Gains (losses)
Slide 68: Wealth Management & Insurance (Constant EUR mn)
66 Wealth Management & Insurance (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 130 162 220 320 412 457 +10.9% 292 869 +197.4% Net fee income 326 327 317 309 307 319 +4.0% 653 626 -4.1% Gains
Slide 69: PagoNxt (EUR mn)
67 PagoNxt (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 2 3 6 11 9 22 +138.0% 5 31 — Net fee income 157 222 231 270 218 228 +4.4% 379 446 +17.7% Gains (losses) on financial transactions and other 3
Slide 70: PagoNxt (Constant EUR mn)
68 PagoNxt (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'23 / Q1'23 H1'22 H1'23 H1'23 / H1'22 Net interest income 2 3 6 11 9 22 +133.5% 5 31 — Net fee income 170 221 229 270 221 226 +2.3% 390 446 +14.4% Gains (losses) on financial transactions and
Slide 71: Supplementary information
69 Supplementary information Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Quarterly income statements Glossary
Slide 72: Glossary - Acronyms
70 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 ❑ CoR: Cost of credit / cost of risk ❑ Cov
Slide 73: Glossary - Definitions
71 Glossary - Definitions Notes: The averages for the RoTE and RoRWA denominators are calculated using the monthly average over the period, which we believe should not differ materially from using daily balances. The risk-weighted assets included in the denominator of the RoRWA metric are calculated
Slide 74: 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 75: 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: 26 July 2023 By: /s/ José García Cantera Name: José García Cantera Title: Ch