Banco Santander, S.a. · BME:SAN
Banco Santander — Q1 2022 Earnings Presentation
103 slides from Banco Santander's earnings presentation, Apr 26, 2022
Slide 1: Q1'22 Earnings Presentation
26 April 2022 Q1’22 Earnings Presentation It's time to build together a better future for you
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 Final Appendix Group performance areas review remarks 4
Slide 5: Q1'22 highlights
Q1’22 highlights Growth • We increased our customer base (+7mn YoY), digital customers (+11% YoY) and digital sales (56% of total sales vs. 50% in Q1’21) • Commercial activity1 remained robust, up QoQ and YoY (loans +5%; deposits +5%; mutual funds +6%) • We continued to grow revenue1, achieving soli
Slide 6: Profit growth underpinned by geographic and business diversification
Profit growth underpinned by our geographic and business diversification Underlying Contribution att. profit2 to Group’s % change Q1’22 vs. Q1’21 (€ mn) underlying profit3 € million Q1'22 Q1'21 Euros Constant euros 1,018 NII 8,855 7,956 11 6 Europe 34% Net fee income 2,812 2,548 10 6 +30% Trading an
Slide 7: Positive profit trend backed by higher revenue, cost discipline and flat LLPs
Positive profit trend backed by higher revenue, cost discipline and flat LLPs Attributable profit Revenue Constant € mn Constant € mn 8,986 8,855 +6% 8,685 NII 8,335 8,551 YoY +47% YoY 2,766 2,812 +6% 2,543 Net fee 2,357 income 2,655 2,706 2,689 YoY 2,275 2,194 2,245 Other 928 858 638 474 375 income
Slide 8: Customer revenue boosted by greater activity, volumes growth and higher interest rates
Customer revenue boosted by greater activity, volumes growth and higher interest rates Total revenue Activity recovery Q1’22 vs. Q1’21 Constant € bn +5% +5% +6% Loans Deposits Mutual funds 11.9 12.3 0.6 Other income 0.9 Growing in higher return and value-added services & products 2.8 Q1’22 vs. Q1’21
Slide 9: Structural changes to operating model driving efficiencies
We continue to make structural changes to our operating model, driving sustainable efficiencies and mitigating the effects of higher inflation Group Cost by region Q1’22 vs. Q1’21 In real terms1 Total costs Q1’22 vs. Q1’21 +4.5% -3.3% Europe -2.0% -6.6% in real terms1 North America +2.6% -3.7% South
Slide 10: Cost of credit remained well below 1%
Cost of credit remained well below 1%. In Q1, LLPs normalizing after releases in Q4’21 Loan-loss provisions Credit quality indicators Constant € bn Mar-21 Dec-21 Mar-22 Cost of credit2 1.08% 0.77% 0.77% 2.3 2.1 2.1 1.8 1.5 NPL ratio 3.20% 3.16% 3.26%3 Coverage ratio 74% 71% 69%3 Q1'21 Q2 Q3 Q41 Q1'2
Slide 11: Organic generation led to FL CET1 ratio above 12%
Organic generation in Q1 led to an increase in the FL CET1 ratio to >12% Fully-loaded CET1 ratio quarterly evolution % +0.40 12.05 11.96 -0.23 -0.03 -0.05 Dec-21 Gross organic Shareholder Regulatory Markets Mar-22 Pro forma1 generation remuneration 2 & Models & others Pro forma 1 Phased-in CET1 rati
Slide 12: Committed to delivering shareholder value
Committed to delivering shareholder value Total capital distributed to shareholders against 2021 results1 ~€3.4bn 6% yield ~50% 2022 via cash dividend shareholder 40% payout remuneration split in equal parts policy2 ~50% via share buybacks (1) Nov-21 interim distribution of cash dividend of €4.85 ce
Slide 13: Outstanding profitability; TNAVps plus cash dividend up 13% YoY
Outstanding QoQ and YoY profitability. TNAVps + cash dividend: +13% YoY Underlying RoTE Underlying EPS TNAV per share €cents EUR cents EUR 14.2% 14.1 4.29 13.0% 12.7% 12.4 4.12 11.6 3.84 Q1'21 FY21 Q1'22 Q1'21 Q4'21 Q1'22 Mar-21 Dec-21 Mar-22 Statutory Statutory Note: including €4.85 cents from the
Slide 14: Supporting the green transition of our clients
Supporting the green transition of our clients and committed to our climate change goals Supporting the green transition… Green finance1 AuM in sustainable funds2 Decarbonization targets €69bn since 2019 €27bn Mar-22 0.23 tCO2e/MWh5 in 2019 €3.6bn in Q1’22 €100bn by 2025 0.18 by 2025 €120bn by 2025
Slide 15: Index
Index 1 2 3 4 Highlights and Business Final Appendix Group performance areas review remarks 15
Slide 16: Geographic and business diversification a key growth driver
Our geographic and business diversification continued to be a key growth driver Q1’22 Total Customer Customer Net operating Underlying vs. Q1’21 customers loans deposits income1 att. profit1 RoTE2 (mn) (€bn) (€bn) (€mn) (€mn) 46.1 584 604 2,245 1,018 13.5% Europe -- +4% +5% +12% +30% +3.0 pp North 2
Slide 17: Europe
Europe Highlights Key data and P&L • Accelerating our business transformation and advancing Loans Deposits Mutual Funds towards a common ‘One Europe’ operating model €584bn +4% €604bn +5% €102bn +3% Efficiency CoR1 RoTE2 • Focus on growing our business, with higher volumes and revenue, by improving
Slide 18: Spain and UK
Spain UK • Growth remained robust in individuals (mortgages, • Strong net mortgage lending (£3.6bn) and higher rates consumer) and transactional products • Higher NII and cost control YoY (efficiency: -7.3 pp), leading • Efficiency plans well on track and strong LLP reductions to sharp rise in profi
Slide 19: North America
North America Highlights Key data and P&L • Refocusing our position in the US while maintaining Loans Deposits Mutual Funds disciplined capital allocation €141bn +8% €119bn +7% €26bn +9% Efficiency CoR1 RoTE2 • Increased customer base and enhanced customer experience through tailored products and se
Slide 20: USA and Mexico
USA Mexico • Simpler and more integrated structure across four core • Successful customer attraction strategy (+1mn customers businesses: Consumer, Commercial, CIB and WM YoY) reflected in volumes growth • Profit levels remained high supported by solid top line • Improved profitability with solid pr
Slide 21: South America
South America Highlights Key data and P&L • Strengthening the connection and sharing best practices Loans Deposits Mutual Funds among units, capturing new business opportunities €149bn +9% €124bn +6% €60bn +8% Efficiency CoR1 RoTE2 • Continued customer base growth, mainly in Brazil and Chile 35.4% +
Slide 22: Brazil and Chile
Brazil Chile • Sharp growth in loyal customer base and solid volumes • Focus on customer acquisition and expanding Getnet, dynamics Superdigital and Life. Launch of Prospera in the quarter • Strong top line performance (transactionality). Costs • Profit up YoY backed by the main P&L lines and improv
Slide 23: Digital Consumer Bank
Digital Consumer Bank Digital Consumer Bank Highlights Key data and P&L New lending Loans Customer Funds • Reinforced our leadership position via new strategic €12bn +17% €117bn +1% €59bn +9% alliances, leasing, subscriptions and BNPL Efficiency CoR1 RoTE2 • New lending +17% YoY, gaining market shar
Slide 24: Global businesses
Global businesses Corporate & Investment Banking Wealth Management & Insurance • Best quarter in SCIB’s history with record revenue, profit and • Double-digit growth on a like-for-like basis (+14%), thanks to RoRWA fueled by strong results from our core businesses and our diversified value-added pro
Slide 25: Cards
Cards • Merchant Acquiring: Total Payments Volume rose 40% backed • 95 million cards managed globally in Mar-22 with revenue of by Brazil (+26%), Europe (+56%) and Mexico (+45%) around €3bn in 2021 • International Trade: real time payments between Spain and • High profitability with an RoTE of c.30%
Slide 26: Corporate Centre
Corporate Centre Highlights Income statement P&L* Q1'22 Q1'21 • NII affected due to the higher liquidity buffer to strengthen our position NII -172 -133 Gains/Losses on Financial -119 -44 Transactions • Negative FX hedging results offset by the positive Operating expenses -87 -79 performance of exch
Slide 27: Index
Index 1 2 3 4 Highlights and Business Final Appendix Group performance areas review remarks 27
Slide 28: We reiterate our 2022 financial targets
We reiterate our 2022 financial targets Our strengths and management levers • In the current geopolitical situation, our starting point is very solid: we have excellent liquidity and capital positions and our direct exposure to Russia and Ukraine is negligible • Our capacity to attract customers and
Slide 29: Index
Index 1 2 3 4 Highlights and Business Final Appendix Group performance areas review remarks 29
Slide 30: Appendix
Appendix Other countries 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: Portugal and Poland
Portugal Poland • Strengthened customer loyalty and increased activity in • Increased demand from SMEs, companies and mortgages mortgages and WM&I drove volumes growth • Strong fee growth, transformation plan (costs: -14% YoY) • Six-fold profit increase driven by NII (interest rates), fee and CoR im
Slide 32: Argentina and Uruguay & Andean region
Argentina Uruguay & Andean region • Loan growth boosted by the local currency portfolio and • Strong customer loyalty reflected in double-digit individual loans loan growth • Profit up YoY driven by the main revenue lines and strong • Customer revenue growth drove profit increase and efficiency gain
Slide 33: Appendix
Appendix Other countries 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 33
Slide 34: Well-funded, diversified, prudent and highly liquid balance sheet
Well-funded, diversified, prudent and highly liquid balance sheet (large % contribution from customer deposits), reflected in solid liquidity ratios Liquidity Balance Sheet € bn, Mar-22 Liquidity Coverage Net Stable Funding 1,341 1,341 Ratio (LCR) Ratio (NSFR) 1 Customer Mar-22 Dec-21 Dec-21 Loans a
Slide 35: 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 € mn, Feb-22 %, Mar-22 +100 bps -100 bps Other South SCF, America, 5% 6
Slide 36: Conservative and decentralized liquidity and funding model
Conservative and decentralized liquidity and funding model €11bn1 issued in public markets in Q1’22 Very manageable maturity profile € bn, Mar-22, Average exchange rates € bn, Mar-22 16.4 Covered 5.1 7.8 5.6 3.4 3.7 5.3 Bonds 0.9 3.9 13.4 11.2 11.3 1.2 7.4 0.9 6.3 Senior 4.5 1.9 1.5 22.4 3.1 1.8 1.5
Slide 37: YTD issuances against 2022 funding plan
YTD issuances against 2022 funding plan Execution of 2022 funding plan € bn, Mar-22 Hybrids SNP + Senior Covered Bonds TOTAL Plan Issued Plan Issued Plan Issued Plan Issued 1 2 Banco Santander, S.A. 3 - 3.5 1.8 9 - 10 6.5 - - 12 - 13.5 8.3 SCF - 0.0 5-6 1.2 0 - 0.5 - 5 - 6.5 1.2 UK - 0.0 3-4 1.5 0.5
Slide 38: 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* MDA1 Assumed Assumedcapital capitalrequirements requirements(fully-loaded)** (fully-loaded)2 Mar-22 Mar-22 16.39% 2.54% T2 16.08% 13.01% +338 bps >15% AT1 +321 bps 1
Slide 39: TLAC/MREL for the Resolution Group
TLAC/MREL for the Resolution Group headed by Banco Santander, S.A. TLAC Mar-22(e) MREL Mar-22(e) % and € bn 132.0 25.4% 35.5% 14.8 Senior 17.1% Req. 18% + Req. 29.85%2 SNP 10.2% + CBR 2.76%3 26.1 CBR 3.51% 2.0 Sub debt Req. 13.82% 11.3 T2 7.9 AT1 Req. 6.75% 69.9 CET1 % RWA1 % LRE1 % RWA1 % LRE1 MREL
Slide 40: Appendix
Appendix Other countries 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 40
Slide 41: Yield on loans (%)
Yield on loans (%) Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Europe 2.06 2.02 1.98 1.99 2.08 Spain 1.84 1.78 1.68 1.69 1.73 United Kingdom 2.27 2.25 2.27 2.23 2.23 Portugal 1.52 1.47 1.44 1.41 1.42 Poland 2.90 2.91 2.93 3.31 4.64 North America 7.71 7.59 7.48 7.38 7.37 US 6.91 6.76 6.59 6.41 6.29 Mexico 10.11 10
Slide 42: Cost of deposits (%)
Cost of deposits (%) Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Europe 0.11 0.08 0.07 0.07 0.08 Spain 0.05 0.05 0.05 0.05 0.05 United Kingdom 0.21 0.14 0.11 0.10 0.12 Portugal 0.02 0.01 0.01 0.01 0.00 Poland 0.06 0.04 0.02 0.04 0.16 North America 0.65 0.61 0.65 0.67 0.73 US 0.17 0.12 0.11 0.08 0.09 Mexico 1.87 1
Slide 43: Appendix
Appendix Other countries 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: Stage coverage
Stage coverage Exposure ¹ Coverage Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Stage 1 885 904 912 929 967 0.5% 0.5% 0.5% 0.5% 0.5% Stage 2 70 70 67 71 68 8.1% 8.2% 8.6% 7.7% 8.0% Stage 3 32 33 33 33 36 42.5% 42.2% 43.0% 41.3% 41.0% (1) Exposure subject to impairment in € b
Slide 45: NPL ratio (%)
NPL ratio (%) Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Europe 3.26 3.30 3.15 3.12 3.01 Spain 4.98 5.16 4.86 4.72 4.47 United Kingdom 1.35 1.30 1.27 1.43 1.42 Portugal 3.84 3.71 3.44 3.44 3.42 Poland 4.82 4.58 4.34 3.61 3.50 North America 2.39 2.28 2.56 2.42 2.83 US 2.11 2.00 2.36 2.33 2.75 Mexico 3.21 3.1
Slide 46: Total coverage ratio (%)
Total coverage ratio (%) Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Europe 50.0 48.4 51.1 49.4 49.1 Spain 48.0 45.7 49.6 51.4 50.4 United Kingdom 40.5 37.4 36.6 25.8 26.1 Portugal 69.2 73.0 75.5 71.7 72.8 Poland 70.3 72.4 74.6 73.9 78.5 North America 153.4 152.3 139.3 134.9 110.5 US 183.2 185.7 161.5 150.3
Slide 47: Credit impaired loans and loan-loss allowances by area
Credit impaired loans and loan-loss allowances. Breakdown by operating areas. March 2022 Credit impaired loans Loan-loss allowances Digital Consumer Digital Consumer Bank, 7.6% Bank, 10.7% Other South America, 0.4% Argentina, 0.5% Other South America, 0.7% Chile, 6.2% Argentina, 1.2% Spain, 26.7% Sp
Slide 48: Cost of credit (%)
Cost of credit (%) Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Europe 0.51 0.49 0.48 0.39 0.37 Spain 0.79 0.91 0.97 0.92 0.88 United Kingdom 0.21 0.09 0.01 (0.09) (0.08) Portugal 0.38 0.41 0.35 0.09 0.03 Poland 1.02 0.88 0.82 0.67 0.65 North America 2.34 1.67 1.46 0.93 0.93 US 2.12 1.34 1.06 0.43 0.49 Mexico
Slide 49: Appendix
Appendix Other countries 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 49
Slide 50: All ESG commitments for 2021 achieved
All ESG commitments for 2021 achieved Future commitments include decarbonization targets 2018 2019 2020 2021 Q1’22 Target Women in senior positions 20% 22.7% 23.7% 26.3% 30% by 2025 Equal Pay Gap 3% 2% 1.5% 1.0% ~0% by 2025 People financially empowered (cumulative) 2.0mn 4.9mn 7.5mn 10mn by 2025 120
Slide 51: Appendix
Appendix Other countries 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 51
Slide 52: Santander Group (EUR mn)
SANTANDER GROUP (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 7,956 8,240 8,458 8,716 8,855 +1.6% 7,956 8,855 +11.3% Net fee income 2,548 2,621 2,641 2,692 2,812 +4.5% 2,548 2,812 +10.4% Gains (losses) on financial transactions and o
Slide 53: Santander Group (Constant EUR mn)
SANTANDER GROUP (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 8,335 8,551 8,685 8,986 8,855 -1.5% 8,335 8,855 +6.2% Net fee income 2,655 2,706 2,689 2,766 2,812 +1.7% 2,655 2,812 +5.9% Gains (losses) on financial transaction
Slide 54: Europe (EUR mn)
Europe (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 2,551 2,656 2,650 2,717 2,839 +4.5% 2,551 2,839 +11.3% Net fee income 1,072 1,086 1,080 1,107 1,154 +4.2% 1,072 1,154 +7.7% Gains (losses) on financial transactions and other 432 1
Slide 55: Europe (Constant EUR mn)
Europe (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 2,593 2,687 2,676 2,733 2,839 +3.9% 2,593 2,839 +9.5% Net fee income 1,077 1,089 1,082 1,108 1,154 +4.1% 1,077 1,154 +7.1% Gains (losses) on financial transactions and oth
Slide 56: Spain (EUR mn)
Spain (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 1,074 1,065 998 1,028 998 -3.0% 1,074 998 -7.1% Net fee income 684 693 679 732 745 +1.8% 684 745 +8.9% Gains (losses) on financial transactions and other 310 74 331 78 278 +255.6% 3
Slide 57: United Kingdom (EUR mn)
United Kingdom (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 989 1,088 1,156 1,151 1,192 +3.6% 989 1,192 +20.6% Net fee income 120 117 114 82 92 +12.2% 120 92 -23.3% Gains (losses) on financial transactions and other (10) (6) 21 (7)
Slide 58: United Kingdom (Constant EUR mn)
United Kingdom (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 1,032 1,121 1,183 1,167 1,192 +2.1% 1,032 1,192 +15.5% Net fee income 126 121 116 83 92 +11.4% 126 92 -26.6% Gains (losses) on financial transactions and other (10
Slide 59: United Kingdom (GBP mn)
United Kingdom (GBP mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 864 938 989 976 997 +2.1% 864 997 +15.5% Net fee income 105 101 97 69 77 +11.4% 105 77 -26.6% Gains (losses) on financial transactions and other (8) (5) 18 (6) 6 — (8) 6 —
Slide 60: Portugal (EUR mn)
Portugal (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 185 184 178 174 170 -2.6% 185 170 -8.5% Net fee income 99 110 115 116 122 +5.1% 99 122 +23.1% Gains (losses) on financial transactions and other 135 1 12 2 41 — 135 41 -69.9% Tot
Slide 61: Poland (EUR mn)
Poland (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 233 242 244 302 407 +35.1% 233 407 +75.1% Net fee income 127 126 133 132 138 +4.3% 127 138 +8.8% Gains (losses) on financial transactions and other (10) 41 21 26 (35) — (10) (35) +
Slide 62: Poland (Constant EUR mn)
Poland (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 229 238 241 301 407 +35.4% 229 407 +78.0% Net fee income 125 124 131 132 138 +4.4% 125 138 +10.6% Gains (losses) on financial transactions and other (10) 40 21 26 (35) — (
Slide 63: Poland (PLN mn)
Poland (PLN mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 1,057 1,098 1,112 1,389 1,881 +35.4% 1,057 1,881 +78.0% Net fee income 576 573 606 610 637 +4.4% 576 637 +10.6% Gains (losses) on financial transactions and other (46) 187 98 121 (
Slide 64: Other Europe (EUR mn)
Other Europe (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 71 76 75 61 72 +17.9% 71 72 +2.2% Net fee income 41 38 39 44 56 +26.9% 41 56 +35.7% Gains (losses) on financial transactions and other 6 (3) (1) (6) 21 — 6 21 +221.2% Total r
Slide 65: Other Europe (Constant EUR mn)
Other Europe (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 73 78 76 62 72 +16.6% 73 72 -0.4% Net fee income 44 40 40 45 56 +25.3% 44 56 +28.8% Gains (losses) on financial transactions and other 8 (3) (0) (6) 21 — 8 21 +153.1
Slide 66: North America (EUR mn)
North America (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 1,971 1,977 2,037 2,086 2,131 +2.2% 1,971 2,131 +8.1% Net fee income 451 410 386 397 443 +11.7% 451 443 -1.8% Gains (losses) on financial transactions and other 313 299 322
Slide 67: North America (Constant EUR mn)
North America (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 2,111 2,107 2,122 2,133 2,131 -0.1% 2,111 2,131 +0.9% Net fee income 482 434 399 405 443 +9.3% 482 443 -8.2% Gains (losses) on financial transactions and other 336
Slide 68: United States (EUR mn)
United States (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 1,310 1,300 1,332 1,356 1,378 +1.6% 1,310 1,378 +5.2% Net fee income 241 191 174 176 197 +11.7% 241 197 -18.3% Gains (losses) on financial transactions and other 324 318 316
Slide 69: United States (Constant EUR mn)
United States (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 1,407 1,397 1,399 1,380 1,378 -0.1% 1,407 1,378 -2.1% Net fee income 259 206 182 178 197 +10.5% 259 197 -23.9% Gains (losses) on financial transactions and other 34
Slide 70: United States (USD mn)
United States (USD mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 1,578 1,567 1,569 1,548 1,546 -0.1% 1,578 1,546 -2.1% Net fee income 290 231 204 200 221 +10.5% 290 221 -23.9% Gains (losses) on financial transactions and other 390 383 372
Slide 71: Mexico (EUR mn)
Mexico (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 661 678 705 730 753 +3.2% 661 753 +13.9% Net fee income 204 210 203 211 245 +16.4% 204 245 +20.4% Gains (losses) on financial transactions and other (6) (16) 5 (30) (17) -44.3% (6)
Slide 72: Mexico (Constant EUR mn)
Mexico (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 704 711 723 753 753 +0.0% 704 753 +6.9% Net fee income 217 221 208 217 245 +12.9% 217 245 +12.9% Gains (losses) on financial transactions and other (7) (17) 6 (31) (17) -4
Slide 73: Mexico (MXN mn)
Mexico (MXN mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 16,201 16,346 16,630 17,312 17,319 +0.0% 16,201 17,319 +6.9% Net fee income 4,995 5,077 4,781 4,998 5,641 +12.9% 4,995 5,641 +12.9% Gains (losses) on financial transactions and oth
Slide 74: Other North America (EUR mn)
Other North America (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 0 0 0 0 0 +92.1% 0 0 — Net fee income 7 8 9 10 1 -91.2% 7 1 -86.9% Gains (losses) on financial transactions and other (5) (2) 1 (4) 1 — (5) 1 — Total revenue 2 5 10 5
Slide 75: Other North America (Constant EUR mn)
Other North America (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 0 0 0 0 0 +92.1% 0 0 — Net fee income 7 8 9 10 1 -91.2% 7 1 -86.9% Gains (losses) on financial transactions and other (5) (2) 1 (4) 1 — (5) 1 — Total revenue
Slide 76: South America (EUR mn)
South America (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 2,570 2,756 2,916 3,065 3,037 -0.9% 2,570 3,037 +18.1% Net fee income 842 928 956 995 1,013 +1.8% 842 1,013 +20.3% Gains (losses) on financial transactions and other 122 85
Slide 77: South America (Constant EUR mn)
South America (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 2,760 2,901 3,024 3,271 3,037 -7.2% 2,760 3,037 +10.0% Net fee income 912 985 988 1,061 1,013 -4.5% 912 1,013 +11.1% Gains (losses) on financial transactions and ot
Slide 78: Brazil (EUR mn)
Brazil (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 1,778 1,917 2,081 2,091 2,143 +2.5% 1,778 2,143 +20.5% Net fee income 632 698 696 701 743 +5.9% 632 743 +17.5% Gains (losses) on financial transactions and other 109 64 103 5 133 —
Slide 79: Brazil (Constant EUR mn)
Brazil (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 2,006 2,089 2,195 2,283 2,143 -6.2% 2,006 2,143 +6.8% Net fee income 713 761 733 766 743 -3.0% 713 743 +4.1% Gains (losses) on financial transactions and other 123 69 109
Slide 80: Brazil (BRL mn)
Brazil (BRL mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 11,731 12,215 12,834 13,348 12,527 -6.2% 11,731 12,527 +6.8% Net fee income 4,169 4,450 4,285 4,476 4,342 -3.0% 4,169 4,342 +4.1% Gains (losses) on financial transactions and other
Slide 81: Chile (EUR mn)
Chile (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 497 511 467 508 483 -4.8% 497 483 -2.8% Net fee income 95 96 104 100 112 +12.1% 95 112 +18.1% Gains (losses) on financial transactions and other 22 30 12 14 55 +288.2% 22 55 +146.1%
Slide 82: Chile (Constant EUR mn)
Chile (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 479 487 470 527 483 -8.4% 479 483 +1.0% Net fee income 91 91 104 104 112 +7.8% 91 112 +22.6% Gains (losses) on financial transactions and other 22 29 12 15 55 +264.0% 22 55
Slide 83: Chile (CLP mn)
Chile (CLP mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 433,496 441,440 425,810 477,726 437,644 -8.4% 433,496 437,644 +1.0% Net fee income 82,698 82,631 94,239 94,052 101,410 +7.8% 82,698 101,410 +22.6% Gains (losses) on financial transa
Slide 84: Argentina (EUR mn)
Argentina (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 203 234 267 361 300 -16.9% 203 300 +47.8% Net fee income 74 87 110 149 121 -18.8% 74 121 +63.3% Gains (losses) on financial transactions and other (16) (22) (13) (47) (57) +21.6
Slide 85: Argentina (Constant EUR mn)
Argentina (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 178 225 251 351 300 -14.5% 178 300 +68.8% Net fee income 65 84 104 144 121 -16.3% 65 121 +86.5% Gains (losses) on financial transactions and other (14) (21) (13) (45) (
Slide 86: Argentina (ARS mn)
Argentina (ARS mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 21,907 27,724 30,984 43,242 36,978 -14.5% 21,907 36,978 +68.8% Net fee income 7,977 10,342 12,802 17,770 14,875 -16.3% 7,977 14,875 +86.5% Gains (losses) on financial transactio
Slide 87: Other South America (EUR mn)
Other South America (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 92 93 102 105 111 +5.4% 92 111 +20.3% Net fee income 41 46 45 46 38 -17.6% 41 38 -8.6% Gains (losses) on financial transactions and other 7 13 13 14 13 -6.4% 7 13 +99.
Slide 88: Other South America (Constant EUR mn)
Other South America (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 97 100 108 110 111 +1.3% 97 111 +14.7% Net fee income 43 49 48 47 38 -20.3% 43 38 -12.3% Gains (losses) on financial transactions and other 7 13 14 15 13 -12.
Slide 89: Digital Consumer Bank (EUR mn)
Digital Consumer Bank (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 996 1,015 1,017 1,014 1,020 +0.6% 996 1,020 +2.4% Net fee income 188 206 222 204 206 +0.8% 188 206 +9.3% Gains (losses) on financial transactions and other 59 21 71
Slide 90: Digital Consumer Bank (Constant EUR mn)
Digital Consumer Bank (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 1,004 1,019 1,024 1,015 1,020 +0.4% 1,004 1,020 +1.6% Net fee income 189 206 222 204 206 +0.7% 189 206 +9.2% Gains (losses) on financial transactions and ot
Slide 91: Corporate Centre (EUR mn)
Corporate Centre (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income (133) (164) (162) (165) (172) +4.2% (133) (172) +29.2% Net fee income (5) (8) (2) (12) (3) -74.0% (5) (3) -36.7% Gains (losses) on financial transactions and other (41) (
Slide 92: Retail Banking (EUR mn)
Retail Banking (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 7,286 7,573 7,770 7,966 8,094 +1.6% 7,286 8,094 +11.1% Net fee income 1,721 1,768 1,754 1,801 1,816 +0.8% 1,721 1,816 +5.5% Gains (losses) on financial transactions and oth
Slide 93: Retail Banking (Constant EUR mn)
Retail Banking (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 7,642 7,861 7,980 8,218 8,094 -1.5% 7,642 8,094 +5.9% Net fee income 1,796 1,823 1,785 1,856 1,816 -2.1% 1,796 1,816 +1.1% Gains (losses) on financial transactions
Slide 94: Corporate & Investment Banking (EUR mn)
Corporate & Investment Banking (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 690 716 729 785 786 +0.1% 690 786 +13.8% Net fee income 462 427 433 422 521 +23.6% 462 521 +12.9% Gains (losses) on financial transactions and other 466 108
Slide 95: Corporate & Investment Banking (Constant EUR mn)
Corporate & Investment Banking (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 711 737 742 802 786 -2.0% 711 786 +10.5% Net fee income 478 440 439 429 521 +21.4% 478 521 +9.0% Gains (losses) on financial transactions and other
Slide 96: Wealth Management & Insurance (EUR mn)
Wealth Management & Insurance (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 113 115 122 127 145 +14.9% 113 145 +28.9% Net fee income 289 306 315 336 321 -4.5% 289 321 +10.9% Gains (losses) on financial transactions and other 126 114
Slide 97: Wealth Management & Insurance (Constant EUR mn)
Wealth Management & Insurance (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income 116 118 124 129 145 +13.0% 116 145 +25.3% Net fee income 299 315 321 341 321 -5.8% 299 321 +7.5% Gains (losses) on financial transactions and other
Slide 98: PagoNxt (EUR mn)
PagoNxt (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income (1) (1) 0 3 2 -39.7% (1) 2 — Net fee income 81 127 140 144 157 +9.0% 81 157 +93.3% Gains (losses) on financial transactions and other (14) (4) 4 14 3 -77.8% (14) 3 — Total revenue
Slide 99: PagoNxt (Constant EUR mn)
PagoNxt (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'22 / Q4'21 Q1'21 Q1'22 Q1'22 / Q1'21 Net interest income (1) (1) 0 3 2 -43.4% (1) 2 — Net fee income 88 136 146 153 157 +3.1% 88 157 +79.4% Gains (losses) on financial transactions and other (14) (3) 4 14 3 -78.2% (14) 3 — Tota
Slide 100: Appendix
Appendix Other countries 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 100
Slide 101: Glossary - Acronyms
Glossary - Acronyms ❑ ALCO: Assets and Liabilities Committee ❑ GTB: Global Transactional banking ❑ RoTE: Return on tangible equity ❑ AT1: Additional Tier 1 ❑ HTC&S: Held to collect and sell ❑ RWA: Risk-weighted assets ❑ AuM: Assets under Management ❑ IFRS 9: International Financial Reporting ❑ SAM:
Slide 102: 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 103: 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: