Banco Santander, S.a. · BME:SAN
Banco Santander — Q1 2025 Earnings Presentation
58 slides from Banco Santander's earnings presentation, Apr 30, 2025
Slide 1: Q1'25 Earnings Presentation
Q1’25 Earnings Presentation 30 April 2025
Slide 2: Important information
Important information Non-IFRS and alternative performance measures Banco Santander, S.A. (“Santander”) cautions that this presentation may contain financial information prepared according to International Financial Reporting Standards (IFRS) and taken from our consolidated financial statements, as
Slide 3: Important information
Important information • exposure to market risks (e.g., risks from interest rates, foreign exchange rates, equity prices and new benchmark indices); • potential losses from early loan repayment, collateral depreciation or counterparty risk; • political instability in Spain, the UK, other European co
Slide 4: Q1'25 Highlights: Progress on our strategy
Index 1 2 3 4 Q1'25 Highlights Group review Final remarks Appendix Progress on our strategy 4
Slide 5: Well ahead of Investor Day targets for 2025
We have entered the last year of our third strategic cycle well ahead in all our key Investor Day targets for 2025, that we improved alongside our Q4’24 results Q1’25 vs. ID targets for 2025 and 2025 targets upgraded in Q4’24 STRENGTH DISCIPLINED CAPITAL ALLOCATION CET1 RWAs with RoRWA > CoE 12.9% 8
Slide 6: Strong start to the year, with all global businesses growing revenue and profit
Strong start to the year, with all global businesses growing revenue and profit Q1’25 revenue Q1’25 att. profit Another record profit in Q1, with 9 million new customers YoY and good activity levels €15.5bn €3.4bn +1% +19% Efficiency RoTE post-AT1 Strong operating performance and profitability on th
Slide 7: Continuing strong operational performance driving profit growth
Continuing strong operational performance driving profit growth Group P&L Current Constant € million Q1'25 Q1'24 % % NII excluding Argentina: NII 11,378 11,983 -5 -2 +0% in current +4% in constant SANTANDER Net fee income 3,369 3,240 4 9 Other income 790 157 n.m. n.m. Total revenue excluding Argenti
Slide 8: ONE Transformation driving revenue and costs ahead of plan
Consistent execution of ONE Transformation is driving both revenue and costs ahead of plan … Global & Network Global Tech FY’22 ONE Transformation businesses1 capabilities & others Q1’25 45.8% -253bps -75bps -79bps 41.8% • Product simplification: 40% fewer • Wealth: collaboration fees with • Global
Slide 9: Supporting value creation across our global businesses
… supporting value creation across our 5 global businesses Revenue Contribution to Profit Profitability Profitability Q1’25 Efficiency (€ bn) Group revenue (€ bn) Q1’25 2025 targets RoTE post-AT1 7.9 50% 39.4% 1.9 17.6% c.17% RETAIL +2% -1.3pp +28% +2.3pp 3.2 41.9% 0.5 9.7% CONSUMER 21% c.12% +2% +0
Slide 10: Retail: another quarter of strong YoY profit growth
Retail: another quarter of strong YoY profit growth on the back of efficiency gains and reduced CoR Q1’25 FINANCIALS Loans Deposits CoR • Our transformation is delivering solid results, as reflected in fee growth (+7%), efficiency improvement (-1pp to 39.4%) and higher €608bn €644bn 0.91% RoTE (+2pp
Slide 11: Consumer: higher loans and deposit gathering driving profit growth
Consumer: higher loans and successful deposit gathering are driving profit growth Q1’25 FINANCIALS Loans Deposits CoR • Openbank launched in Mexico and Germany. In the US, new €214bn €133bn 2.14% partnership with Verizon announced to boost growth +4% +12% +1bps • Loans up, driven by auto. Strong dep
Slide 12: CIB: improvement in profitability driven by fee growth
CIB: improvement in profitability driven by 11% fee growth year on year Q1’25 FINANCIALS Loans Deposits CoR • Further improvement in our key drivers as we execute our strategy focused on fee and capital-light business, driving RoTE above 21%, €142bn €134bn 0.08% while we maintain a leading position
Slide 13: Wealth: strong profit growth and collaboration fees up
Wealth: strong profit growth, with revenue growth across business lines and collaboration fees up double-digits Q1’25 FINANCIALS Net new money Net sales Gross written • Increased focus on higher-margin investment solutions and (PB) (SAM) premiums services, improving recurrency levels €5.7bn €4.8bn €
Slide 14: Payments: driving revenue growth and scale through global platforms
Payments: driving revenue growth and scale through global platforms Q1’25 FINANCIALS Loans Getnet TPV Cards Spending • On track with our key strategic priorities to capture scale though €25bn €56bn €81bn global platforms, driving cost per transaction improvements +15% +14% +7% • Increased activity b
Slide 15: Improving profitability with EPS up 26% and 14.5% value creation
Improving profitability with EPS up 26% and 14.5% value creation RoTE post-AT1 EPS TNAVps + Cash DPS € cents € per share Cash DPS: €10.0 cents +1.7pp +26% +14.5% 21.5 15.8% 17.0 5.56 14.1% 5.46 4.86 Q1'24 Q1'25 Q1'24 Q1'25 Mar-24 Mar-25 Since 2021, including the second buyback against 2024 results,
Slide 16: Index: Group review
Index 1 2 3 4 Q1'25 Highlights Group review Final remarks Appendix Progress on our strategy 16
Slide 17: Continuing strong operational performance driving profit growth
Continuing strong operational performance driving profit growth Group P&L Current Constant € million Q1'25 Q1'24 % % NII excluding Argentina: Profit NII 11,378 11,983 -5 -2 +0% in current +4% in constant € mn Net fee income 3,369 3,240 4 9 +19% Other income 790 157 n.m. n.m. Total revenue 3,402 excl
Slide 18: Revenue growth underpinned by stronger customer activity
Revenue growth underpinned by stronger customer activity across our businesses TOTAL REVENUE Constant € mn GROUP +5% • >95% of total revenue is customer related 16,106 15,216 15,186 15,537 • Strong revenue increase YoY reflecting the benefits of our model, 14,828 with all businesses growing • Revenu
Slide 19: Resilient NII performance, growing in most businesses excluding Argentina
Resilient NII performance, growing in most businesses excluding Argentina NET INTEREST INCOME AND NIM NET INTEREST INCOME • >80% of Group NII is from our Retail and Consumer businesses NIM 2.97% 2.89% 2.79% 2.92% 2.73% • NII +4% YoY excluding Argentina with most businesses growing: Quarterly − Retai
Slide 20: Record net fee income driven by global businesses
Record net fee income driven by value added from our global businesses NET FEE INCOME Constant € mn +9% DETAIL BY BUSINESS 3,360 3,369 • Retail: 3,189 3,100 3,115 − Good commercial dynamics and customer growth (+6% YoY), resulting in generalized fee growth across our footprint − Of note, Mexico and
Slide 21: ONE Transformation driving structural efficiency improvements
ONE Transformation is driving further structural efficiency improvements GROUP RETAIL AND CONSUMER 40.9% 40.2% Efficiency Revenue Retail and Consumer represent Constant € mn 16,106 15,537 70% of the Group’s total costs 11,129 14,828 15,216 15,186 10,885 Total revenue +2% Constant € mn Q1'24 Q1'25 6,
Slide 22: Solid credit quality with improvement across most businesses
Solid credit quality with improvement across most of our businesses LLPs AND CREDIT QUALITY CREDIT QUALITY CoR 1.20% 1.21% 1.18% 1.15% 1.14% 12 month • CoR improved YoY, improving in most of our businesses • Better credit quality YoY, backed by record low unemployment +7% rates in most countries and
Slide 23: Strong organic capital generation at 22% RoTE
Strong organic capital generation, with profitable front-book growth at 22% RoTE CET1 PERFORMANCE AND CAPITAL PRODUCTIVITY MAXIMIZE CAPITAL PRODUCTIVITY CET1 Mar-25 or estimates % Front book pricing +0.33 +0.12 12.9 RoRWA of new book 2.8% 12.8 -0.27 -0.08 Asset rotation and risk transfer activities
Slide 24: Index: Final remarks
Index 1 2 3 4 Q1'25 Highlights Group review Final remarks Appendix Progress on our strategy 24
Slide 25: Another record quarter on track to meet our 5 targets
Another record quarter that puts us on track to meet our 2025 targets 2025 targets Q1’25 €15.5bn Revenue c.€62bn +1%YoY in euros ✓ Revenue and costs on track Mid-high single +9% on the back of our consistent execution Fees digit growth in constant euros, YoY ✓ of ONE Transformation Down vs. 2024 -1%
Slide 26: Index: Appendix
Index 1 2 3 4 Q1'25 Highlights Group review Final remarks Appendix Progress on our strategy 26
Slide 27: Appendix contents
Appendix Aligning financial reporting to recent changes in our management structure 2025 Investor Day targets summary Group P&L and excluding Argentina Detail by global business and country Reconciliation of underlying results to statutory results Glossary For more details, refer to the document ent
Slide 28: Aligning financial reporting to changes in management structure
Aligning financial reporting to recent changes in our management structure 1 • Following the board of directors’ approval of the dissolution of the regional management structures, which took effect on 3rd Dissolution of February 2025: regional - We will stop reporting financial information by region
Slide 29: Changes to secondary segments - dissolution of regional reporting
1 Changes to secondary segments - dissolution of regional reporting From… …To TOTAL GROUP TOTAL GROUP EUROPE Spain Spain United Kingdom United Kingdom Portugal Poland Portugal Other Europe Poland • We will stop reporting financial NORTH AMERICA US information by region (Europe, US North America and
Slide 30: Impact of modifications to global business perimeters in 2024
2 Impact of modifications to global business perimeters in 2024 From… …To 2024, €mn Group Retail Consumer CIB Wealth Payments Group NII 46,668 -5 0 -32 +79 -42 46,668 Fees 13,010 +26 0 0 +8 -34 13,010 Other income 2,533 -108 -4 +27 +55 +31 2,533 Total income 62,211 -87 -4 -5 +142 -45 62,211 Costs -2
Slide 31: Appendix contents
Appendix Aligning financial reporting to recent changes in our management structure 2025 Investor Day targets summary Group P&L and excluding Argentina Detail by global business and country Reconciliation of underlying results to statutory results Glossary 31
Slide 32: 2025 Investor Day targets summary
ONE Transformation is driving double-digit growth in value creation 2022 2023 2024 Q1'25 2025 ID targets New 2025 targets RoTE post-AT1(%) - - 15.5 15.8 - c.16.5% post-AT1 RoTE pre-AT1(%) 13.4 15.1 16.3 16.6 15-17% >17% pre-AT1 Profitability Payout (Cash + SBB)1 (%) 40 50 50 50 50 EPS growth (%) 23
Slide 33: Appendix contents
Appendix Aligning financial reporting to recent changes in our management structure 2025 Investor Day targets summary Group P&L and excluding Argentina Detail by global business and country Reconciliation of underlying results to statutory results Glossary 33
Slide 34: Group P&L and excluding Argentina (YoY)
Group P&L and excluding Argentina (YoY) Group Group excl. Argentina Group P&L Current Constant Current Constant € million Q1'25 Q1'24 % % % % NII 11,378 11,983 -5 -2 0 4 Net fee income 3,369 3,240 4 9 3 8 Other income 790 157 n.m. n.m. 15 16 Total revenue 15,537 15,380 1 5 1 5 Operating expenses -6,
Slide 35: Group P&L QoQ variations and excluding Argentina
Group P&L QoQ variations and excluding Argentina Group quarterly performance excluding Argentina Constant €mn Q1’25 vs. Q4’24 Group Group excl. Argentina -0% P&L Current Constant Current Constant 15,059 15,033 14,273 € million % % % % Revenue NII -5 -6 1 0 +0% Net fee income 1 0 5 4 10,548 10,946 10
Slide 36: Appendix contents
Appendix Aligning financial reporting to recent changes in our management structure 2025 Investor Day targets summary Group P&L and excluding Argentina Detail by global business and country Reconciliation of underlying results to statutory results Glossary 36
Slide 37: Detail by global business
Detail by global business 37
Slide 38: Retail & Commercial Banking
Retail & Commercial Banking KEY DATA HIGHLIGHTS Loans Deposits Mutual funds • ONE Transformation continued to deliver strong results reflected in the €608bn €644bn €101bn expansion of fees and customer funds (+4% YoY), the improvement in -1% +2% +15% the cost to serve (-5% YoY) and higher profitabil
Slide 39: Retail Spain and Retail UK
RETAIL SPAIN RETAIL UK Loans Deposits Mutual funds Loans Deposits Mutual funds €156bn €218bn €46bn €228bn €209bn €6bn -2% +4% +14% -3% -5% -4% Yield on loans Cost of deposits Efficiency Yield on loans Cost of deposits Efficiency 3.78% 0.57% 31.8% 4.14% 1.93% 53.6% -32bps -8bps -0.0pp +35bps -23bps -
Slide 40: Retail Mexico and Retail Brazil
RETAIL MEXICO RETAIL BRAZIL Loans Deposits Mutual funds Loans Deposits Mutual funds €31bn €35bn €13bn €56bn €56bn €21bn +8% +2% +37% -2% +9% +16% Yield on loans Cost of deposits Efficiency Yield on loans Cost of deposits Efficiency 13.33% 4.07% 44.3% 16.54% 8.24% 40.5% -49bps -114bps -0.3pp +30bps +
Slide 41: Digital Consumer Bank
Digital Consumer Bank KEY DATA HIGHLIGHTS New lending Loans Deposits • Progressing in our priority to become the preferred choice of our partners and customers while being the most cost competitive player in the €21bn €214bn €133bn industry -6% +4% +12% • Loans up 4%, driven by growth across our foo
Slide 42: DCB Europe and DCB US
DCB Europe DCB US Loans Deposits Mutual funds Loans Deposits Mutual funds €140bn €84bn €5bn €54bn €49bn €4bn +3% +14% +20% -2% +7% +11% Yield on loans Cost of deposits Efficiency Yield on loans Cost of deposits Efficiency 5.82% 2.14% 47.5% 12.08% 2.14% 42.1% +18bps -10bps +0.4pp +74bps +14bps +0.4pp
Slide 43: Corporate & Investment Banking
Corporate & Investment Banking KEY DATA HIGHLIGHTS Loans Deposits • Good progress in our strategy focused on fee and capital-light business through our GM and GB initiatives, supporting an enhanced value €142bn €134bn proposition and higher profitability, while maintaining a leading position +4% -4%
Slide 44: Wealth Management & Insurance
Wealth Management & Insurance KEY DATA HIGHLIGHTS AuMs Net new money (PB) Net sales €511bn €5.7bn €4.8bn • We continue to build the best wealth and insurance manager in Europe and the Americas, leveraging our leading global private banking platform +11% 7% of volumes1 8% of volumes1 and our best-in-
Slide 45: Payments: PagoNxt and Cards
Payments Cards Getnet TPV Getnet number of transactions Spending Average balance €56bn €81bn €23bn +14% +4% +7% +15% Underlying P&L* Q1'25 Q1'24 % Q4'24 % Q1'24 % Q1'24¹ EBITDA margin Underlying P&L* Q1'25 % Q4'24 % Q1'24 % Q1'24¹ NII 38 31 9.8 39.3 23.9 NII 647 0.2 13.8 2.4 Net fee income 245 224 -
Slide 46: Corporate Centre
Corporate Centre P&L HIGHLIGHTS Underlying P&L* Q1'25 Q1'24 • NII affected by the lower interest rates which has positive sensitivity to rate hikes NII -112 -31 • Losses on financial transactions improved, due to a lower impact Gains / losses on financial transactions -91 -162 from foreign currency
Slide 47: Detail by country
Detail by country 47
Slide 48: Spain and UK
Spain and UK SPAIN UK Loans Deposits Mutual funds Loans Deposits Mutual funds €229bn €299bn €97bn €234bn €220bn €7bn 0% 0% +17% -3% -5% -2% Efficiency CoR RoTE post-AT1 Efficiency CoR RoTE post-AT1 33.5% 0.49% 25.5% 53.7% 0.04% 9.2% -0.7pp -10bps +8.3pp -4.7pp -4bps -0.7pp Underlying P&L* Q1'25 % Q4
Slide 49: Portugal and Poland
PORTUGAL POLAND Loans Deposits Mutual funds Loans Deposits Mutual funds €40bn €39bn €5bn €40bn €52bn €7bn +4% +7% +15% +9% +12% +21% Efficiency CoR RoTE post-AT1 Efficiency CoR RoTE post-AT1 27.0% -0.03% 30.6% 29.0% 1.20% 22.1% +4.1pp -21bps -0.1pp +1.5pp -75bps +2.6pp Underlying P&L* Q1'25 % Q4'24
Slide 50: US and Mexico
US MEXICO Loans Deposits Mutual funds Loans Deposits Mutual funds €117bn €91bn €14bn €45bn €41bn €20bn +2% -3% +10% +7% +3% +29% Efficiency CoR RoTE post-AT1 Efficiency CoR RoTE post-AT1 50.0% 1.73% 10.7% 41.7% 2.55% 20.6% -0.3pp -25bps +3.4pp +0.3pp -8bps +2.3pp Underlying P&L* Q1'25 % Q4'24 % Q1'2
Slide 51: Brazil and Chile
BRAZIL CHILE Loans Deposits Mutual funds Loans Deposits Mutual funds €94bn €84bn €54bn €42bn €30bn €13bn +3% +8% +12% 0% +3% +19% Efficiency CoR RoTE post-AT1 Efficiency CoR RoTE post-AT1 32.8% 4.61% 14.4% 34.5% 1.26% 18.2% -0.1pp -18bps -0.3pp -8.0pp +41bps +9.2pp Underlying P&L* Q1'25 % Q4'24 % Q1
Slide 52: Argentina and Argentine peso
ARGENTINA ARGENTINA PESO Loans Deposits Mutual funds • In Q2 2024, given a significant divergence between the official €9bn €11bn €6bn exchange rate and inflation, we decided to start using an alternative +61% +73% +49% exchange rate Efficiency CoR RoTE post-AT1 – This exchange rate was modelled by
Slide 53: Appendix contents
Appendix Aligning financial reporting to recent changes in our management structure 2025 Investor Day targets summary Group P&L and excluding Argentina Detail by global business and country Reconciliation of underlying results to statutory results Glossary 53
Slide 54: Reconciliation of underlying results to statutory results
Reconciliation of underlying results to statutory results EUR mn January-March 2025 January-March 2024 Statutory Underlying Statutory Underlying Adjustments Adjustments results results results results Net interest income 11,378 — 11,378 11,983 — 11,983 Net fee income 3,369 — 3,369 3,240 — 3,240 Gain
Slide 55: Appendix contents
Appendix Aligning financial reporting to recent changes in our management structure 2025 Investor Day targets summary Group P&L and excluding Argentina Detail by global business and country Reconciliation of underlying results to statutory results Glossary 55
Slide 56: Glossary - Acronyms
Glossary - Acronyms • A2A: account to account • FX: Foreign exchange • Ps: Per share • AM: Asset management • FY: Full year • QoQ: Quarter-on-Quarter • AuMs: Assets under Management • ID: Investor Day • Repos: Repurchase agreements • bn: Billion • IFRS 9: International Financial Reporting • Retail:
Slide 57: Glossary - Definitions
Glossary - Definitions PROFITABILITY AND EFFICIENCY • RoTE (Return on tangible equity): Profit attributable to the parent (annualized)1/ Average stockholders' equity2 (excl. minority interests) - intangible assets • RoTE (post-AT1): Profit attributable to the parent minus AT1 costs (annualized)1 / A
Slide 58: 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: