Banco Santander, S.a. · BME:SAN
Banco Santander — FY2021 Earnings Presentation
126 slides from Banco Santander's earnings presentation, Feb 2, 2022
Slide 1: Form 6-K
FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of February, 2022 Commission File Number: 001-12518 Banco Santander, S.A. (Exact name of registrant as specified in its c
Slide 2: Table of Contents
BANCO SANTANDER, S.A. ________________________ TABLE OF CONTENTS Item 1. January - December 2021 Earnings presentation
Slide 3: All. Together. Now 2021 Earnings Presentation
All. Together. Now 2021 Earnings Presentation
Slide 4: Important information: Non-IFRS and alternative performance measures
2 Important information Non-IFRS and alternative performance measures This presentation contains, in addition to the financial information prepared in accordance with International Financial Reporting Standards (“IFRS”) and derived from our financial statements, alternative performance measures (“AP
Slide 5: Important information: forward-looking statements
3 Important information Numerous factors could affect our future results and could cause those results deviating from those anticipated in the forward-looking statements. Other unknown or unpredictable factors could cause actual results to differ materially from those in the forward-looking statemen
Slide 6: 2021 Performance; Value Creation & Strategic Priorities; Targets
1. 2021 Performance 2. Value Creation & Strategic Priorities 3. Financial Targets and Key Takeaways
Slide 7: A strong 2021, building on proven track record since 2015
5 A strong 2021, building on proven track record since 2015 1) Constant EUR 2) Underlying 3) Including acquisition of SCUSA minority interest which closed on 31 January 2022 and the announced acquisition of Amherst Pierpont which is subject to completion, regulatory approval and other conditions 4)
Slide 8: Strong operating performance in 2021: €8.7bn of underlying profit
6 Strong operating performance in 2021: €8.7bn of underlying profit 1) Changes in constant euros 2) Underlying RoTE 3) Including acquisition of SCUSA minority interest which closed on 31 January 2022 and the announced acquisition of Amherst Pierpont which is subject to completion, regulatory approva
Slide 9: All-time record underlying profit before tax
7 All-time record underlying profit before tax… 1) 2021: restructuring costs (net of tax). 2020: adjustments to the valuation of goodwill & deferred tax assets and other 2) Changes in constant euros Underlying PBT +21%2 above 2019 12.7 9.3 15.3 2019 2020 2021 Constant EUR bn EUR bn 14.9 EUR million
Slide 10: Reflecting strong business momentum
8 … reflecting strong business momentum Note: Loans and advances to customers excluding reverse repos. Customer deposits excluding repos. Mutual funds: marketed mutual funds 1) Gross written protection insurance premiums +38% PoS turnover Total revenue 43.3 43.4 46.4 2019 2020 2021 +7% Activity reco
Slide 11: Geographical and business diversification delivers growth and profitability
9 Geographical and business diversification delivers growth and profitability 1) YoY changes in constant euros 2) Adjusted RoTE’s: adjusted based on deployed Group’s Capital calculated as contribution of RWA’s at 12%. Using tangible equity, Europe: 7.4%, North America: 13.1%, South America: 20.3%, D
Slide 12: Delivering on our ESG commitments
10 Delivering on our ESG commitments, supporting our customers’ green transition and financially empowering more people 1) Only SCIB global business 2) All segments excluding SCIB and WM&I 3) Banco Santander SA emerged as the top financial adviser for renewable energy project financing in 2021, with
Slide 13: Strong performance and increase in CET1 ratio generated shareholder value
11 Strong performance and increase in CET1 ratio generated shareholder value 2021 shareholder remuneration policy TNAVps 40% payout Cash DPS €4.12 +€0.33 YoY €7.6 Cents 2021 shareholder value creation +11%1 1) TNAV per share + cash DPS of €7.6 cents paid in calendar year 2021
Slide 14: Operational Results
12 OPERATIONAL RESULTS Note: quarterly and annual income statement can be found in the appendix
Slide 15: All-time record underlying profit before tax
13 All-time record underlying profit before tax 1) 2021: restructuring costs (net of tax). 2020: adjustments to the valuation of goodwill & deferred tax assets and other 2) Changes in constant euros Underlying PBT +21%2 above 2019 12.7 9.3 15.3 2019 2020 2021 Constant EUR bn EUR bn 14.9 EUR million
Slide 16: Improving performance QoQ in the main P&L lines, notably revenue
14 Improving performance QoQ in the main P&L lines, notably revenue… 1) Gains on financial transactions + other income 3.5 3.0 2.6 2.7 2.0 1.8 2.2 1.5 Q1'20 Q2 Q3 Q4 Q1'21 Q2 Q3 Q4 5.2 5.0 5.1 5.3 5.2 5.3 5.4 5.6 Costs LLPs 10.2 9.7 10.3 10.7 10.6 10.9 11.0 11.4 0.2 1.5 1.7 1.4 2.2 2.1 2.1 2.3 Q1'20
Slide 17: Structural changes driving sustainable efficiencies
15 … while we continue to make structural changes to our operating model, driving sustainable efficiencies 1) Changes in constant euros 2) South America excluding Argentina: +3.9%, -3.5% in real terms 3) Excluding the impact from average inflation +4.1% -1.9% in real terms3Total Group Efficiency rat
Slide 18: Loan-loss provisions and credit quality indicators
16 2019 2020 2021 Cost of credit 1.00% 1.28% 0.77% NPL ratio 3.32% 3.21% 3.16% Coverage ratio 68% 76% 71% Strong credit quality allowed us to release c. €750mn of overlay provisions Loan-loss provisions Constant EUR bn 8.0 11.8 7.4 2019 2020 2021 -37% Credit quality indicators
Slide 19: Organic generation in Q4 drove increase in FL CET1 ratio to 12%
17 Organic generation in Q4 drove increase in the FL CET1 ratio to 12%, including impact of announced corporate transactions pending completion at year end 1) Minority interests Mexico (-0.05 pp) 2) Including acquisition of SCUSA minority interest (-0.08 pp) which closed on 31 January 2022 and the a
Slide 20: Europe 2021 Highlights
18 2021 Highlights 2021 Key data1 Foundations laid for One Europe business transformation: • Top 3 NPS in all markets supported by improved digital capabilities, e.g. OneApp • Structurally reducing cost to serve Growth in volumes & market shares (mainly individuals) Profit doubled supported by net o
Slide 21: Spain and UK
19 1) 2021 data and YoY changes (underlying profit, loans and funds). UK changes in constant euros 2) Adjusted RoTE’s: adjusted based on deployed Group’s Capital calculated as contribution of RWA’s at 12%. Using tangible equity, RoTE is 6.3% (+3.0pp) for Spain and 11.7% (+8.7pp) for the UK 3) Negati
Slide 22: North America
20 North America 1) 2021 data and YoY changes (underlying profit, loans and funds in constant euros). Efficiency and YoY changes in total revenue and customer loans excluding Bluestem and Puerto Rico disposals 2) Adjusted RoTE’s: adjusted based on deployed Group’s Capital calculated as contribution
Slide 23: US and Mexico
211) 2021 data and YoY changes (underlying profit, loans and funds in constant euros). US efficiency and YoY changes in total revenue and customer loans excluding Bluestem and Puerto Rico disposals 2) Adjusted RoTE’s: adjusted based on deployed Group’s Capital calculated as contribution of RWA’s at
Slide 24: South America
221) 2021 data and YoY changes (underlying profit, loans and funds in constant euros) 2) Adjusted RoTE’s: adjusted based on deployed Group’s Capital calculated as contribution of RWA’s at 12%. Using tangible equity, RoTE is 20.3% (+2.6pp) Strong growth in customer base (+5.8mn) and expansion across
Slide 25: Brazil and Chile
231) 2021 data and YoY changes (underlying profit, loans and funds in constant euros) 2) Adjusted RoTE’s: adjusted based on deployed Group’s Capital calculated as contribution of RWA’s at 12%. Using tangible equity, RoTE is 21.5% (+2.3pp) for Brazil and 19.3% (+6.1pp) for Chile Brazil Record custome
Slide 26: Digital Consumer Bank
24 Digital Consumer Bank 1) 2021 data and YoY changes (underlying profit, loans and funds in constant euros) 2) Adjusted RoTE’s: adjusted based on deployed Group’s Capital calculated as contribution of RWA’s at 12%. Using tangible equity, RoTE is 14.0% (+2.3pp) 3) According to Accenture’s Customer E
Slide 27: Corporate & Investment Banking and Wealth Management & Insurance
25 1) 2021 data and YoY changes (underlying profit, revenue lines and commercial activity in constant euros) 2) Dealogic league tables as of Q4’21 3) Non-credit related protection business 4) Including fees generated by asset management and insurance transferred to the commercial network Corporate &
Slide 28: PagoNxt: Payments
26 1) Constant EUR mn and YoY changes in constant euros 2) One Trade onboarded customers 3) TPV: Total Payment Volume 4) Changes in constant euros (estimated fiscal year from May’21-April’22 vs May’20-April’21). Management accounting data International Trade Group Payments Merchant acquiring Revenue
Slide 29: 2021 Performance; Value Creation & Strategic Priorities; Targets
1. 2021 Performance 2. Value Creation & Strategic Priorities 3. Financial Targets and Key Takeaways
Slide 30: Delivering today while building the Santander of tomorrow
28 Delivering today while building the Santander of tomorrow To be the best open financial services platform, by acting responsibly and earning the lasting loyalty of our people, customers, shareholders and communities Our aim Everything we do should be Simple, Personal and Fair To help people and b
Slide 31: Resilient business model leverages diversification and scale
29 Resilient business model leverages the Group’s diversification and scale to deliver more predictable results Diversification 1) Underlying Contribution as a % of operating areas and excluding the Corporate Centre 2) In constant € 3) Customer Satisfaction internal benchmark of individual customers
Slide 32: Improving customer service and increasing connectivity
30 Improving customer service and increasing connectivity Investing in Tech… … and building common solutions 76% Digital transactions of our core banks (vs 55% in 2019) €2bn/ year Tech investment to transform the business… … help customers transact online PagoNxt: common tech backbone for payments
Slide 33: Disciplined capital allocation strategy
31 Risk adjusted new credit production Disciplined capital allocation strategy to drive profitability improvement & maximize shareholder returns… 1) 2019-21 average 2) 2021 vs. 2020 in constant EUR 2021 Capital accretive growth Risk adjusted new credit production Granular profitability mgmt. RWA’s g
Slide 34: Greater shareholder value creation going forward
32 … leads to even greater shareholder value creation going forward Disciplined capital allocation will improve profitability leading to strong shareholder value creation To deliver TNAVps growth… …making share buybacks a meaningful remuneration tool while growing cash dividend Note: 40% target in 2
Slide 35: One Santander
33 ONE SANTANDER PAGONXT DIGITAL CONSUMER BANK
Slide 36: One Santander
34 ONE SANTANDER PAGONXT DIGITAL CONSUMER BANK
Slide 37: One Europe, structural change delivering sustainable profitability
35 One Europe, structural change delivering sustainable profitability 1) CIB and Rest of Europe expected to account for 15% of RWAs 2) Adjusted RoTE’s: adjusted based on deployed Group’s Capital calculated as contribution of RWA’s at 12% 3) RoTE for the four countries (Spain, UK, Portugal and Poland
Slide 38: North America: stronger synergies increasing profitability
36 ~44% C/I ~20% RoTE1 North America: stronger synergies increasing profitability Strategic focus 2022 Targets 2022 Region Targets 1) Adjusted RoTE’s: adjusted based on deployed Group’s Capital calculated as contribution of RWA’s at 12% 2) Acquisition of SCUSA minority interest closed on 31 January
Slide 39: Core US businesses will generate through-the-cycle >15% RoTE
37 Core businesses will generate through-the-cycle >15% RoTE1 1) Adjusted RoTE’s: adjusted based on deployed Group’s Capital calculated as contribution of RWA’s at 12% Strategic focusStrategic focus CIB Consumer Commercial CIB Wealth Management Market-leading consumer finance franchise funded by att
Slide 40: South America: high profitability with structural growth
38 South America: high profitability with structural growth Strategic focus Double-digit growth on Retail segments Leading regional Consumer Finance Accelerate connectivity in Corporate and SCIB segments Proven risk management capabilities able to control cost of credit Fee businesses and
Slide 41: PagoNxt
39 ONE SANTANDER PAGONXT DIGITAL CONSUMER BANK
Slide 42: Global payments platform targeting 50% revenue growth in 2022
40 Our global payments platform for our customers and open market targeting 50% revenue growth in 2022 And following additional targets: Payments 26mn Customers >30% Total Group Payments Merchant Acquiring International Trade >70% Total Group acquiring TPV €147bn Total Payments Volume 1.6mn Active m
Slide 43: Digital Consumer Bank
41 ONE SANTANDER PAGONXT DIGITAL CONSUMER BANK
Slide 44: Digital Consumer Bank: strong momentum and 2022 targets
42 Our Digital Consumer Bank: strong momentum in 2021 & continued progress in 2022 with the following targets Double digit customer growth >15% RoTE1 ~44% Efficiency ratio Largest full service global digital bank 5 Countries Low-cost funding for loan growth Fast Launch of online solutions Auto/mobil
Slide 45: 2021 Performance; Value Creation & Strategic Priorities; Targets
1. 2021 Performance 2. Value Creation & Strategic Priorities 3. Financial Targets and Key Takeaways
Slide 46: On track to reach our 2019 ID commitments in 2022
44 On track to reach our 2019 ID commitments in 2022 1) Underlying 2) Including acquisition of SCUSA minority interest which closed on 31 January 2022 and the announced acquisition of Amherst Pierpont which is subject to completion, regulatory approval and other conditions 3) The board of directors
Slide 47: Advancing towards our ESG commitments
45 Advancing towards our ESG commitments Note: non-audited info 1) Since 2019 30% Women in senior leadership positions by 2025 10mn Financially empowered individuals by 2025 2021 Our targets 7.4mn Financially Empowered individuals 26% Women in senior leadership positions Supporting the green transit
Slide 48: Medium-term Group targets
46 Medium-term Group targets Investor Day 2023 ~15% RoTE ~40% Efficiency ~12% CET1 FL
Slide 49: Thank You
Our purpose is to help people and businesses prosper. Our culture is based on believing that everything we do should be: Thank You.
Slide 50: Appendix
> Santander Appendix 48
Slide 51: Appendix index
49 Appendix Other countries and Corporate Centre Balance sheet and capital management Yield on loans and cost of deposits Responsible banking NPL and coverage ratios and cost of credit Quarterly income statements Glossary
Slide 52: Portugal and Poland
50 Strong growth in volumes and revenue. Latest interest rate hikes should support revenue growth Net operating income after LLPs +43% (fees +18%, LLPs -38%), offset by CHF mortgage related charges 1) 2021 data and YoY changes (loans, funds and profit in constant euros). Poland changes in constant e
Slide 53: Other South America countries
51 2021 Key data12021 Key data1 Loans €5bn +40% Customer funds €12bn +52% Efficiency 57.8% +1.8pp CoR 3.01% -292bps Profit €274mn +73% RoTE2 34.8% +8.5pp 1) 2021 data and YoY changes (loans, funds and profit in constant euros) 2) Adjusted RoTEs: adjusted based on deployed Group’s Capital calculated
Slide 54: Corporate Centre 2021 Highlights
52 2021 Highlights Income statement Lower revenue affected by the positive impact of FX hedging in 2020 Significantly lower provisions due to charges in 2020 for certain holdings whose valuation was affected by the crisis (*) EUR mn Corporate Centre P&L* 2021 2020 NII -1,390 -1,374 Gains/Losses on f
Slide 55: Appendix index
53 Appendix Other countries and Corporate Centre Balance sheet and capital management Yield on loans and cost of deposits Responsible banking NPL and coverage ratios and cost of credit Quarterly income statements Glossary
Slide 56: Well-funded, diversified, highly liquid balance sheet
54 Well-funded, diversified, prudent and highly liquid balance sheet (large % contribution from customer deposits), reflected in solid liquidity ratios Dec-21 Sep-21 Spain2 151% 165% UK2 168% 147% Portugal 138% 132% Poland 197% 185% US 150% 163% Mexico 184% 180% Brazil 141% 140% Chile 148% 171% Arge
Slide 57: Conservative and decentralized liquidity and funding model
55 Conservative and decentralized liquidity and funding model EUR 29 bn1 issued in public markets in 2021 EUR bn, Dec-21 Very manageable maturity profile EUR bn, Dec-21 Covered Bonds Senior Non- Preferred Senior Note: preference shares also includes other AT1 instruments. Other Other includes issu
Slide 58: Interest rate risk hedging
56 Interest rate risk hedging SCF, 6% Spain, 3% UK, 6% Poland, 17% Portugal, 2% USA, 17% Mexico, 13% Brazil, 20% Chile, 12% Other S.Am., 3% ALCO portfolios reflect our geographic diversificationMostly positive interest rate sensitivity Net interest income sensitivity* to a +/-100 bp parallel shift E
Slide 59: 2021 issuances against funding plan
57 2021 Issuances against funding plan Execution of 2021 funding plan EUR bn, Dec-21 o The Financial Plan focused on covering TLAC/MREL requirements, with no secured issuances, to: o continue building up TLAC/MREL buffers. o pre-finance senior non-preferred / senior preferred transactions which lose
Slide 60: Capital levels exceed minimum regulatory requirements
58 4.50% 12.51% 0.84% 2.50% 1.00% CCyB, 0.01% 1.78% 1.73% 2.38% 2.57% 13.01% 16.81% Regulatory Requirement 2021 Group ratios Dec-21 4.50% 12.12% 11-12% 0.84% 2.50% 1.00% CCyB, 0.01% 1.78% 1.67% 1.50% 2.38% 2.62% 2.00%13.01% 16.41% >15% Assumed regulatory requirement 2021 Group ratios Dec-21 Medium-t
Slide 61: TLAC/MREL for the Resolution Group
59 TLAC/MREL for the Resolution Group headed by Banco Santander, S.A. Note: Figures applying the IFRS 9 transitional arrangements and CRR transitional arrangements 1. TLAC RWAs are €291.6bn and leverage exposure is €662.6bn. MREL RWAs are €371.3bn and leverage exposure is €711.1bn 2. TLAC requiremen
Slide 62: Appendix index
60 Appendix Other countries and Corporate Centre Balance sheet and capital management Yield on loans and cost of deposits Responsible banking NPL and coverage ratios and cost of credit Quarterly income statements Glossary
Slide 63: Yield on loans (%)
61 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Europe 2.30 2.12 2.06 2.09 2.08 2.04 2.00 2.00 Spain 1.99 1.86 1.82 1.85 1.85 1.80 1.68 1.66 United Kingdom 2.49 2.35 2.32 2.36 2.33 2.32 2.33 2.29 Portugal 1.63 1.57 1.57 1.51 1.46 1.40 1.36 1.35 Poland 4.04 3.34 2.95 2.89 2.91 2.91 2.94 3.31 North
Slide 64: Cost of deposits (%)
62 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Europe 0.36 0.25 0.14 0.12 0.11 0.08 0.07 0.07 Spain 0.06 0.04 0.04 0.04 0.04 0.03 0.03 0.03 United Kingdom 0.69 0.52 0.29 0.23 0.21 0.15 0.11 0.11 Portugal 0.08 0.06 0.05 0.03 0.02 0.02 0.02 0.01 Poland 0.65 0.42 0.14 0.09 0.05 0.03 0.01 0.03 North
Slide 65: Appendix index
63 Appendix Other countries and Corporate Centre Balance sheet and capital management Yield on loans and cost of deposits Responsible banking NPL and coverage ratios and cost of credit Quarterly income statements Glossary
Slide 66: All ESG commitments for 2021 achieved
64 All ESG commitments for 2021 achieved Future commitments include decarbonization targets • Single use plastic free • Top 10 Company to work for • Scholarships, internships & entrepreneurships • People Helped • Women on the Board • Electricity from renewable sources • Carbon neutral in our own ope
Slide 67: Appendix index
65 Appendix Other countries and Corporate Centre Balance sheet and capital management Yield on loans and cost of deposits Responsible banking NPL and coverage ratios and cost of credit Quarterly income statements Glossary
Slide 68: Stage coverage
66 Exposure ¹ Coverage Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Stage 1 891 878 862 864 885 904 912 929 0.6% 0.6% 0.6% 0.5% 0.5% 0.5% 0.5% 0.5% Stage 2 53 61 60 69 70 70 67 71 8.2% 7.7% 8.8% 8.5% 8.1% 8.2% 8.6% 7.7% Stage 3 33 33
Slide 69: NPL ratio (%)
67 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Europe 3.37 3.41 3.29 3.34 3.26 3.30 3.15 3.12 Spain 6.88 6.55 5.98 6.23 6.18 6.22 5.99 5.77 United Kingdom 0.99 1.10 1.33 1.24 1.35 1.30 1.27 1.43 Portugal 4.56 4.43 4.25 3.89 3.84 3.71 3.44 3.44 Poland 4.29 4.57 4.58 4.74 4.82 4.58 4.34 3.
Slide 70: Total coverage ratio (%)
68 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Europe 47.0 46.5 48.7 50.3 50.0 48.4 51.1 49.4 Spain 44.6 43.3 46.0 47.1 47.2 46.0 48.8 52.2 United Kingdom 39.7 42.8 41.6 44.7 40.5 37.4 36.6 25.8 Portugal 59.0 60.9 64.3 66.5 69.2 73.0 75.5 71.7 Poland 68.1 69.0 70.8 70.7 70.3 72.4 74.6 73
Slide 71: Credit impaired loans and loan-loss allowances by area
69 Spain, 28.1% UK, 4.1% Portugal, 4.4% Poland, 3.8% Other Europe, 1.0% US, 16.7% Mexico, 4.1% Brazil, 19.7% Chile, 4.9% Argentina, 1.3% Other South America, 0.7% Digital Consumer Bank, 11.3% Spain, 39.5% UK, 11.7% Portugal, 4.5% Poland, 3.7% Other Europe, 2.0% US, 8.1% Mexico, 3.1% Brazil, 12.9% Ch
Slide 72: Cost of credit (%)
70 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Europe 0.36 0.41 0.48 0.58 0.51 0.49 0.48 0.39 Spain 0.64 0.68 0.80 1.01 0.91 1.00 1.01 0.92 United Kingdom 0.14 0.22 0.26 0.27 0.21 0.09 0.01 (0.09) Portugal 0.23 0.30 0.42 0.51 0.38 0.41 0.35 0.09 Poland 0.88 0.96 0.99 1.10 1.02 0.88 0.82
Slide 73: Appendix index
71 Appendix Other countries and Corporate Centre Balance sheet and capital management Yield on loans and cost of deposits Responsible banking NPL and coverage ratios and cost of credit Quarterly income statements Glossary
Slide 74: Santander Group (EUR mn)
72 SANTANDER GROUP (EUR mn) (*) Including: in Q1’20, restructuring costs in Q2’20, adjustment to the valuation of goodwill, adjustment has been made to deferred tax assets of the Spanish consolidated fiscal group and restructuring costs and other in Q4’20, restructuring costs and other in Q1’21, res
Slide 75: Santander Group (Constant EUR mn)
73 SANTANDER GROUP (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 7,658 7,496 7,837 8,180 8,048 8,258 8,381 8,683 +3.6% 31,172 33,370 +7.1% Net fee income 2,571 2,232 2,425 2,484 2,574 2,624 2,613 2,691 +3.0% 9,
Slide 76: Europe (EUR mn)
74 Europe (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 2,378 2,330 2,534 2,670 2,645 2,751 2,744 2,812 +2.5% 9,911 10,952 +10.5% Net fee income 1,128 942 961 968 1,072 1,086 1,079 1,108 +2.7% 4,000 4,344 +8.6% Gains (l
Slide 77: Europe (Constant EUR mn)
75 Europe (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 2,362 2,350 2,573 2,715 2,660 2,753 2,740 2,799 +2.2% 10,000 10,952 +9.5% Net fee income 1,120 944 965 972 1,074 1,085 1,079 1,106 +2.6% 4,001 4,344 +8.6%
Slide 78: Spain (EUR mn)
76 Spain (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 925 931 1,034 1,067 1,019 1,015 975 985 +1.0% 3,957 3,994 +0.9% Net fee income 643 535 562 573 587 617 616 661 +7.2% 2,314 2,482 +7.3% Gains (losses) on financial t
Slide 79: United Kingdom (EUR mn)
77 United Kingdom (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 820 796 905 983 1,001 1,100 1,168 1,163 -0.4% 3,504 4,431 +26.5% Net fee income 190 94 115 96 120 117 114 82 -27.8% 494 434 -12.3% Gains (losses) on financ
Slide 80: United Kingdom (Constant EUR mn)
78 United Kingdom (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 822 821 951 1,030 1,017 1,104 1,163 1,148 -1.3% 3,625 4,431 +22.3% Net fee income 190 99 121 102 122 118 113 81 -28.9% 511 434 -15.2% Gains (losse
Slide 81: United Kingdom (GBP mn)
79 United Kingdom (GBP mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 706 706 818 885 874 948 1,000 987 -1.3% 3,115 3,809 +22.3% Net fee income 163 85 104 87 105 101 97 69 -28.9% 440 373 -15.2% Gains (losses) on financial tra
Slide 82: Portugal (EUR mn)
80 Portugal (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 202 197 193 195 193 192 185 181 -1.9% 787 751 -4.6% Net fee income 101 90 94 103 99 110 115 116 +0.8% 388 441 +13.7% Gains (losses) on financial transactions and
Slide 83: Poland (EUR mn)
81 Poland (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 296 251 246 243 240 250 251 309 +23.1% 1,037 1,049 +1.2% Net fee income 116 104 112 120 127 126 133 132 -0.3% 452 518 +14.5% Gains (losses) on financial transactio
Slide 84: Poland (Constant EUR mn)
82 Poland (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 280 249 240 240 239 248 251 312 +24.2% 1,009 1,049 +4.0% Net fee income 110 102 109 118 126 125 133 134 +0.8% 440 518 +17.7% Gains (losses) on financial t
Slide 85: Poland (PLN mn)
83 Poland (PLN mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 1,279 1,134 1,095 1,096 1,090 1,131 1,145 1,423 +24.2% 4,604 4,790 +4.0% Net fee income 503 467 498 541 576 573 606 610 +0.8% 2,009 2,365 +17.7% Gains (losses) on
Slide 86: Other Europe (EUR mn)
84 Other Europe (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 134 155 155 182 192 195 165 174 +5.0% 627 726 +15.9% Net fee income 78 120 78 75 138 115 101 117 +15.4% 351 470 +33.9% Gains (losses) on financial transactio
Slide 87: Other Europe (Constant EUR mn)
85 Other Europe (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 133 152 155 183 193 195 166 173 +4.1% 623 726 +16.7% Net fee income 76 118 79 75 139 115 101 115 +13.6% 348 470 +35.2% Gains (losses) on financial t
Slide 88: North America (EUR mn)
86 North America (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 2,261 2,079 2,076 2,055 2,005 2,010 2,070 2,119 +2.4% 8,470 8,204 -3.1% Net fee income 464 405 413 402 451 410 386 397 +2.7% 1,684 1,644 -2.4% Gains (losses
Slide 89: North America (Constant EUR mn)
87 North America (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 2,093 2,028 2,113 2,083 2,045 2,041 2,054 2,064 +0.5% 8,317 8,204 -1.4% Net fee income 429 402 426 408 460 415 381 387 +1.5% 1,665 1,644 -1.3% Gain
Slide 90: United States (EUR mn)
88 United States (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 1,462 1,429 1,406 1,348 1,337 1,326 1,359 1,383 +1.7% 5,645 5,405 -4.2% Net fee income 250 215 218 206 241 191 174 176 +1.3% 889 782 -12.0% Gains (losses) o
Slide 91: United States (Constant EUR mn)
89 United States (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 1,364 1,331 1,391 1,360 1,363 1,353 1,354 1,335 -1.4% 5,446 5,405 -0.8% Net fee income 233 200 216 209 245 195 173 169 -2.1% 858 782 -8.8% Gains (l
Slide 92: United States (USD mn)
90 United States (USD mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 1,612 1,573 1,644 1,608 1,611 1,599 1,601 1,578 -1.4% 6,437 6,389 -0.8% Net fee income 275 237 255 247 290 231 204 200 -2.1% 1,014 925 -8.8% Gains (losses)
Slide 93: Mexico (EUR mn)
91 Mexico (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 798 650 669 707 667 684 711 736 +3.5% 2,825 2,799 -0.9% Net fee income 211 185 189 188 204 210 203 211 +3.9% 772 828 +7.3% Gains (losses) on financial transactions
Slide 94: Mexico (Constant EUR mn)
92 Mexico (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 729 697 722 722 682 688 700 728 +4.1% 2,870 2,799 -2.5% Net fee income 193 197 203 192 208 212 199 208 +4.5% 784 828 +5.6% Gains (losses) on financial tra
Slide 95: Mexico (MXN mn)
93 Mexico (MXN mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 17,484 16,706 17,310 17,322 16,360 16,503 16,783 17,466 +4.1% 68,822 67,113 -2.5% Net fee income 4,617 4,719 4,868 4,596 4,995 5,077 4,781 4,998 +4.5% 18,799 19,85
Slide 96: Other North America (EUR mn)
94 Other North America (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income (0) 0 0 0 0 0 0 0 +47.8% 1 0 -26.9% Net fee income 4 5 7 8 7 8 9 10 +2.4% 24 34 +41.7% Gains (losses) on financial transactions and other 2 (1) (2) (0
Slide 97: Other North America (Constant EUR mn)
95 Other North America (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income (0) 0 0 0 0 0 0 0 +47.8% 1 0 -26.9% Net fee income 4 5 7 8 7 8 9 10 +2.4% 24 34 +41.7% Gains (losses) on financial transactions and other 2 (
Slide 98: South America (EUR mn)
96 South America (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 3,065 2,606 2,486 2,566 2,575 2,760 2,920 3,069 +5.1% 10,723 11,323 +5.6% Net fee income 1,077 779 848 885 842 928 956 995 +4.1% 3,589 3,721 +3.7% Gains (lo
Slide 99: South America (Constant EUR mn)
97 South America (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 2,420 2,404 2,464 2,642 2,608 2,746 2,862 3,107 +8.6% 9,930 11,323 +14.0% Net fee income 839 728 833 903 856 926 933 1,005 +7.7% 3,303 3,721 +12.7%
Slide 100: Brazil (EUR mn)
98 Brazil (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 2,270 1,813 1,756 1,786 1,780 1,919 2,083 2,093 +0.5% 7,625 7,875 +3.3% Net fee income 869 614 664 677 632 698 696 701 +0.7% 2,824 2,728 -3.4% Gains (losses) on fi
Slide 101: Brazil (Constant EUR mn)
99 Brazil (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 1,742 1,683 1,737 1,796 1,843 1,919 2,016 2,097 +4.0% 6,958 7,875 +13.2% Net fee income 667 577 654 679 654 698 673 702 +4.4% 2,577 2,728 +5.9% Gains (los
Slide 102: Brazil (BRL mn)
100 Brazil (BRL mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 11,100 10,725 11,066 11,446 11,744 12,228 12,847 13,361 +4.0% 44,336 50,179 +13.2% Net fee income 4,250 3,679 4,167 4,324 4,169 4,450 4,285 4,476 +4.4% 16,420 17,
Slide 103: Chile (EUR mn)
101 Chile (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 448 425 420 494 497 511 467 508 +8.8% 1,787 1,984 +11.0% Net fee income 92 74 74 94 95 96 104 100 -3.8% 335 394 +17.8% Gains (losses) on financial transactions and
Slide 104: Chile (Constant EUR mn)
102 Chile (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 443 428 427 499 484 492 475 533 +12.2% 1,797 1,984 +10.4% Net fee income 91 75 75 95 92 92 105 105 -0.2% 336 394 +17.2% Gains (losses) on financial transa
Slide 105: Chile (CLP mn)
103 Chile (CLP mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 397,015 384,057 383,394 447,669 433,780 441,721 426,106 478,032 +12.2% 1,612,135 1,779,638 +10.4% Net fee income 81,770 67,170 67,421 85,452 82,698 82,631 94,239 9
Slide 106: Argentina (EUR mn)
104 Argentina (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 241 261 218 192 204 235 268 362 +35.0% 912 1,070 +17.3% Net fee income 76 56 70 71 74 87 110 149 +34.5% 273 420 +53.9% Gains (losses) on financial transactions
Slide 107: Argentina (Constant EUR mn)
105 Argentina (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 146 196 212 255 189 240 268 373 +39.4% 809 1,070 +32.2% Net fee income 46 44 65 87 69 89 110 153 +38.8% 242 420 +73.5% Gains (losses) on financial tra
Slide 108: Argentina (ARS mn)
106 Argentina (ARS mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 16,991 22,846 24,646 29,613 22,035 27,866 31,122 43,387 +39.4% 94,096 124,410 +32.2% Net fee income 5,327 5,132 7,611 10,109 7,977 10,342 12,802 17,770 +38.8%
Slide 109: Other South America (EUR mn)
107 Other South America (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 106 107 91 94 93 93 102 106 +3.6% 399 395 -1.0% Net fee income 40 34 40 43 41 46 45 46 +1.2% 158 179 +13.3% Gains (losses) on financial transactions
Slide 110: Other South America (Constant EUR mn)
108 Other South America (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 89 96 88 92 92 95 103 105 +1.8% 365 395 +8.0% Net fee income 35 31 39 42 41 47 45 45 -0.5% 147 179 +21.5% Gains (losses) on financial transa
Slide 111: Digital Consumer Bank (EUR mn)
109 Digital Consumer Bank (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 1,088 1,054 1,048 1,073 1,056 1,075 1,077 1,074 -0.3% 4,263 4,281 +0.4% Net fee income 192 163 211 205 188 206 222 204 -7.8% 771 821 +6.4% Gains (l
Slide 112: Digital Consumer Bank (Constant EUR mn)
110 Digital Consumer Bank (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 1,087 1,068 1,059 1,085 1,059 1,073 1,079 1,070 -0.8% 4,299 4,281 -0.4% Net fee income 192 164 211 205 189 206 222 204 -7.8% 772 821 +6.4%
Slide 113: Corporate Centre (EUR mn)
111 Corporate Centre (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income (304) (354) (371) (345) (324) (355) (354) (357) +1.1% (1,374) (1,390) +1.2% Net fee income (9) (6) (11) (3) (5) (8) (2) (12) — (29) (28) -5.4% Gains (lo
Slide 114: Retail Banking (EUR mn)
112 Retail Banking (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 8,004 7,272 7,280 7,500 7,472 7,766 7,968 8,183 +2.7% 30,056 31,389 +4.4% Net fee income 2,058 1,536 1,707 1,685 1,709 1,753 1,746 1,801 +3.2% 6,987 7,010
Slide 115: Retail Banking (Constant EUR mn)
113 Retail Banking (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 7,252 7,084 7,348 7,646 7,559 7,781 7,898 8,151 +3.2% 29,329 31,389 +7.0% Net fee income 1,845 1,501 1,709 1,705 1,727 1,753 1,726 1,803 +4.5% 6,
Slide 116: Corporate & Investment Banking (EUR mn)
114 Corporate & Investment Banking (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 677 705 771 765 720 739 747 788 +5.4% 2,918 2,995 +2.6% Net fee income 402 405 360 375 466 434 435 416 -4.4% 1,542 1,750 +13.5% Gains (los
Slide 117: Corporate & Investment Banking (Constant EUR mn)
115 Corporate & Investment Banking (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 609 677 768 778 724 742 742 788 +6.2% 2,832 2,995 +5.8% Net fee income 367 397 358 381 470 435 431 415 -3.8% 1,504 1,750 +16.4% G
Slide 118: Wealth Management & Insurance (EUR mn)
116 Wealth Management & Insurance (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 109 93 92 100 88 91 96 100 +4.6% 394 375 -4.9% Net fee income 308 269 279 296 297 316 321 343 +6.8% 1,153 1,276 +10.7% Gains (losses) on fi
Slide 119: Wealth Management & Insurance (Constant EUR mn)
117 Wealth Management & Insurance (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 101 89 93 102 89 92 95 99 +4.3% 385 375 -2.5% Net fee income 292 265 280 298 299 317 320 341 +6.7% 1,135 1,276 +12.5% Gains (losse
Slide 120: PagoNxt (EUR mn)
118 PagoNxt (EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 0 (1) 0 (0) (1) (1) 0 3 — (1) 1 — Net fee income 94 78 88 103 81 127 141 144 +2.7% 362 493 +36.3% Gains (losses) on financial transactions and other 7 (3) (8) (2
Slide 121: PagoNxt (Constant EUR mn)
119 PagoNxt (Constant EUR mn) Change Change Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 / Q3'21 2020 2021 2021 / 2020 Net interest income 0 (0) 0 (0) (1) (1) 0 3 — (0) 1 — Net fee income 76 75 88 103 83 128 138 144 +4.6% 343 493 +43.9% Gains (losses) on financial transactions and other 7 (
Slide 122: Appendix index
120 Appendix Other countries and Corporate Centre Balance sheet and capital management Yield on loans and cost of deposits Responsible banking NPL and coverage ratios and cost of credit Quarterly income statements Glossary
Slide 123: Glossary - Acronyms
121 Glossary - Acronyms ❑ ALCO: Assets and Liabilities Committee ❑ AT1: Additional Tier 1 ❑ AuM: Assets under Management ❑ BFG: Deposit Guarantee Fund in Poland ❑ bn: Billion ❑ BNPL: Buy Now Pay Later ❑ Bps: basis points ❑ CAGR: Compound anual growth rate ❑ CET1: Common equity tier 1 ❑ CIB: Corporat
Slide 124: Glossary - Definitions
122 Glossary - Definitions Notes: The averages for the RoTE and RoRWA denominators are calculated using13 months from December to December. For periods less than one year, and if there are results in the net capital gains and provisions line, the profit used to calculate RoE and RoTE is the annualiz
Slide 125: Thank You
Our purpose is to help people and businesses prosper. Our culture is based on believing that everything we do should be: Thank You.
Slide 126: 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: 2 February 2022 By: /s/ José García Cantera Name: José García Cantera Title: