Banco Santander, S.a. · BME:SAN
Banco Santander — Investor Presentation (July 2019)
33 slides from Banco Santander's investor presentation, Jul 5, 2019
Slide 1: 2018 and Q1'19 income statements and balance sheets according to the new reporting structure
2018 and Q1’19 income statements and balance sheets according to the new reporting structure July 2019
Slide 2: Important information
2 Important information Non - IFRS and alternative performance measures In addition to the financial information prepared in accordance with International Financial Reporting Standards (“IFRS”), this presentation contains certain financial measures that constitute alternative performance measures (“
Slide 3: Important information: forward-looking statements and no offer
3 Forward - looking statements speak only as of the date of this presentation and are based on the knowledge, information available and views taken on such date ; such knowledge, information and views may change at any time . Santander does not undertake any obligation to update or revise any forwar
Slide 4: Adapting our reporting to the new organisational structure and IFRS 8 requirements
4 Adapting our reporting to the new organisational structure and according to IFRS 8 requirements 3 regions : Europe, North America and South America Converging the business model, the IT&Ops and shared services UK aligned with ring - fencing structure and Spain with the local customer related
Slide 5: Main changes in the organisational structure and creation of SGP
5 Global Divisions expenses Cost allocation to countries / Transfer SAN Digital Division expenses REST OF EUROPE “From 30 June on…” “Until now…” SAN Spain Openbank Hub Madrid 1 SAN Spain Platforms (ODS) 2 SAN UK Hub UK 1 (including London Branch) SAN UK Ring Fence CIB Rest of Europe WM Rest of Europ
Slide 6: Regional structure: Europe, North America and South America
6 3 new regions: Europe, North America and South America Europe South America North America Mexico United States Brazil Chile Argentina Uruguay Peru Colombia SCF Spain SCF United Kingdom Portugal Poland Rest of Europe Regional structure 1
Slide 7: New geographical areas. Key metrics 2018 and medium-term goals
7 South America North America Europe Commercial Medium - term 2018 goals Loyal / Active customers Digital customers # of countries top3 in CSAT C/I RoTE 2 RoRWA 2 Financial New geographical areas. Key metrics 2018 and medium - term goals Key metrics Medium - term 2018 goals Medium - term 2018 goals
Slide 8: RoTE 2018 and medium-term goals by countries
8 RoTE (%) 20 % >20% 10 % 14 - 16% 16 % 14 - 15 % 9% 9 - 11% 20 % 19 - 21% 8% 1 11 - 13% 1 18 % 19 - 20% 12 % 13 - 15% 13% 2 14 - 16% 2 Medium - term goals RoTE 2018 and medium - term goals by countries 2018 (1) Adjusted for excess of capital (2) Adjusted for excess of capital. Otherwise, RoTE in 20
Slide 9: Creation of Santander Global Platform (SGP)
9 Creation of Santander Global Platform (SGP) 2 Santander Global Platform (SGP) Digital Assets • Digital assets – SaaS model 1 • Centres of Expertise 2 • InnoVentures C Openbank • Openbank • Open Digital Services (ODS) A Fully digital banking platform and value proposition in our existing markets an
Slide 10: Primary segments
‘Santander a Primary segments 10
Slide 11: Main differences in underlying profit of primary segments
11 Main differences in underlying p rofit of p rimary segments. Income statement of the Group does not change New criteria Previous criteria Difference UK Spain Rest of Europe SGP Corporate Centre Other countries 0 TOTAL GROUP 0 - 90 - 184 +324 - 54 +35 - 31 1,362 1,738 - 170 - - 1,721 1,272 1,554 1
Slide 12: Europe
12 (*).- Includes exchange differences. (**).- Excluding reverse repos. (***).- Excluding repos. EUROPE (Europe vs Continental Europe + UK) EUR million NEW PREVIOUS DIFFERENCES Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Underlying income statement Net i
Slide 13: Spain
13 (*).- Includes exchange differences. (**).- Excluding reverse repos. (***).- Excluding repos. Spain EUR million NEW PREVIOUS DIFFERENCES Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Underlying income statement Net interest income 969 1,026 1,044 1,054
Slide 14: Santander Consumer Finance
14 (*).- Includes exchange differences. (**).- Excluding reverse repos. (***).- Excluding repos. Santander Consumer Finance EUR million NEW PREVIOUS DIFFERENCES Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Underlying income statement Net interest income 9
Slide 15: United Kingdom
15 (*).- Includes exchange differences. (**).- Excluding reverse repos. (***).- Excluding repos. United Kingdom EUR million NEW PREVIOUS DIFFERENCES Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Underlying income statement Net interest income 1,023 1,029 1
Slide 16: Portugal
16 (*).- Includes exchange differences. (**).- Excluding reverse repos. (***).- Excluding repos. Portugal EUR million NEW PREVIOUS DIFFERENCES Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Underlying income statement Net interest income 222 213 211 211 216
Slide 17: Poland
17 (*).- Includes exchange differences. (**).- Excluding reverse repos. (***).- Excluding repos. Poland EUR million NEW PREVIOUS DIFFERENCES Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Underlying income statement Net interest income 247 240 243 265 281 2
Slide 18: Rest of Europe
18 (*).- Includes exchange differences. (**).- Excluding reverse repos. (***).- Excluding repos. Rest of Europe EUR million NEW PREVIOUS DIFFERENCES Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Underlying income statement Net interest income 127 71 111 14
Slide 19: North America
19 (*).- Includes exchange differences. (**).- Excluding reverse repos. (***).- Excluding repos. NORTH AMERICA (North America vs United States + Mexico) EUR million NEW PREVIOUS DIFFERENCES Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Underlying income st
Slide 20: United States
20 (*).- Includes exchange differences. (**).- Excluding reverse repos. (***).- Excluding repos. United States EUR million NEW PREVIOUS DIFFERENCES Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Underlying income statement Net interest income 1,221 1,281 1,
Slide 21: Mexico
21 (*).- Includes exchange differences. (**).- Excluding reverse repos. (***).- Excluding repos. Mexico EUR million NEW PREVIOUS DIFFERENCES Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Underlying income statement Net interest income 649 653 728 733 766 6
Slide 22: South America
22 (*).- Includes exchange differences. (**).- Excluding reverse repos. (***).- Excluding repos. SOUTH AMERICA (South America vs Latin America - Mexico) EUR million NEW PREVIOUS DIFFERENCES Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Underlying income st
Slide 23: Brazil
23 (*).- Includes exchange differences. (**).- Excluding reverse repos. (***).- Excluding repos. Brazil EUR million NEW PREVIOUS DIFFERENCES Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Underlying income statement Net interest income 2,482 2,424 2,377 2,4
Slide 24: Chile
24 (*).- Includes exchange differences. (**).- Excluding reverse repos. (***).- Excluding repos. Chile EUR million NEW PREVIOUS DIFFERENCES Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Underlying income statement Net interest income 490 495 481 477 440 49
Slide 25: Rest of South America
25 (*).- Includes exchange differences. (**).- Excluding reverse repos. (***).- Excluding repos. Rest of South America EUR million NEW PREVIOUS DIFFERENCES Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Underlying income statement Net interest income 326 33
Slide 26: Santander Global Platform
26 (*).- Includes exchange differences. (**).- Excluding reverse repos. (***).- Excluding repos. SANTANDER GLOBAL PLATFORM EUR million NEW PREVIOUS DIFFERENCES Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Underlying income statement Net interest income 18
Slide 27: Corporate Centre
27 (*).- Includes exchange differences. (**).- Excluding reverse repos. (***).- Excluding repos. CORPORATE CENTRE EUR million NEW PREVIOUS DIFFERENCES Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Underlying income statement Net interest income (234) (243)
Slide 28: Secondary segments
‘Santander = Secondary segments 28
Slide 29: Retail Banking
29 RETAIL BANKING (Retail Banking vs Retail Banking + Real Estate Activity Spain) EUR million NEW PREVIOUS DIFFERENCES Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Underlying income statement Net interest income 7,962 8,010 7,846 8,443 8,163 8,026 8,062 7
Slide 30: Corporate & Investment Banking
30 (*).- Includes exchange differences. CORPORATE & INVESTMENT BANKING EUR million NEW PREVIOUS DIFFERENCES Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Underlying income statement Net interest income 583 558 602 718 653 551 541 573 713 644 31 18 29 5 9 N
Slide 31: Wealth Management & Insurance
31 (*).- Includes exchange differences. WEALTH MANAGEMENT & INSURANCE EUR million NEW PREVIOUS DIFFERENCES Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Underlying income statement Net interest income 125 131 132 138 140 100 107 104 109 113 25 24 28 30 27
Slide 32: Santander Global Platform
32 (*).- Includes exchange differences. SANTANDER GLOBAL PLATFORM EUR million NEW PREVIOUS DIFFERENCES Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Underlying income statement Net interest income 18 20 20 20 22 18 20 20 20 22 Net fee income 1 1 1 4 2 1 1
Slide 33: 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: 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