Slide 1: Activity and Results First Half 2010
ACTIVITY AND RESULTS First Half 2010 29 July 2010
Slide 2: Important information
Important information 2 Banco Santander, S.A. (“Santander”) cautions that this presentation contains forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995. These forward-looking statements are found in various places throughout this presentation and
Slide 3: Agenda
Agenda Group highlights H1’10 H1’10 Results Group Business areas Conclusions Appendix
Slide 4: H1'10 Summary
H1’10 Summary 4 1 Solid profit generation 2 Balance sheet strength 3 High shareholder return 4 Strengtheningour position in core markets
Slide 5: Solid profit generation in Q2'10
1 Solid PROFIT generation in Q2’10 ... 5 Group’s quarterly attributable profit EUR million 2,423 +0.7% 2,221 2,202 2,215 2,230 2,096 Q1’09 Q2 Q3 Q4 Q1’10 Q2 Group’s attributable profit EUR million -1.6% 4,519 4,423 4,445 +0.5% H1’09 H2’09 H1’10 EPS was EUR 0.2574 in Q2’10 and EUR 0.5126 in H1’10
Slide 6: Managing the different macro scenarios where we operate
1 .... resulting from managing the different MACRO SCENARIOS where we operate ... 6 Deleveraging economies Slow recovery of GDP Q1’10; % y-o-y change +2.4 +0.6 - -0.2 -1.3 Spain UK Eurozone USA Although SAN has the capacity to restructure (UK, SOV ...) Attributable profit* H1’10 In EUR Continental E
Slide 7: Higher profits in a large percentage of markets: diversification
1 .... to obtain higher PROFITS in a large percentage of markets: the advantage of diversification 7 Mature markets Continental Europe EUR million 2,706 -5.6% 2,553 H1’09 H1’10 Restructuring mature markets (UK+Sov.) In constant EUR million +35.0% 1,178 873 H1’09 H1’10 Attributable profit* H1’10 In E
Slide 8: Lending growing at faster pace in less leveraged areas
1 Also differentiated growth in volumes: LENDING growing 8 at faster pace in less leveraged areas _____ .... Mature markets Continental Europe % in EUR +6 -0.2 Jun’10 / Q2’10 Jun’09 annualised Restructuring mature markets (UK+Sov.) % in constant EUR +1 +2 Jun’10 / Q2’10 Jun’09 annualised Attributabl
Slide 9: Greater emphasis on savings in deleveraging economies
1 ... against the greater emphasis on SAVINGS in deleveraging economies 9 Mature markets Continental Europe % in EUR +50 +33 Jun’10 / Q2’10 Jun’09 annualised Restructuring mature markets (UK+Sov.) % in constant EUR +7 +3 Jun’10 / Q2’10 Jun’09 annualised Attributable profit* H1’10 In EUR Retail Units
Slide 10: Balance sheet strength: deposits capturing in Spain
2 Balance sheet strength: DEPOSITS capturing in Spain 10 Success of deposits capturing campaign* Balance captured EUR 32,000 mill. Customers 222,000 New customers 109,000 Market share increase in Spain* o/Dec’09 +270 b.p. +220 b.p. +160 b.p. Demand Time Total (*) Other resident sectors, data as of M
Slide 11: Balance sheet strength: comfortable liquidity position
2 Balance sheet strength: comfortable LIQUIDITY position in the 11 Group Increase in absolute balances and ... Var. Dec.’09 / Jun’10 EUR billion Customer deposits +88.3 M/L term issues (w/o sec.)* +17.7 Captured +106.0 Loans +45.3 Maturity** M/L term debt +72.5 (H2’10 + 2011 + 2012) ... liquidity ra
Slide 12: Balance sheet strength: credit risk management
2 Balance sheet strength: CREDIT RISK management 12 Better than peers and good evolution of all indicators ... Group ratios (Mar.’10) NPLs Coverage 5.89% 74% 3.34% 54% SAN European peers SAN European peers Net NPL entries*. Group total EUR billion 5.3 4.9 4.3 4.2 3.5 3.9 3.4 3.4 2.8 2.3 Q1’08 Q2 Q3
Slide 13: Balance sheet strength: loan-loss provisions
2 Balance sheet strength: CREDIT RISK management 13 ... while we built up LOAN-LOSS PROVISIONS in the Group in Q2’10 EUR million 18,898 19,911 18,497 12,863 12.219 13,232 11,770 9,302 6,682 3,275 6,027 6,181 6,727 6.679 6,679 Dec 07 Dec 08 Dec 09 Mar’10 Jun’10 Total funds Specific Generic Spain: Gen
Slide 14: Balance sheet strength: stress tests
2 Balance sheet strength: STRESS TESTS 15 Amid an adverse stress test scenario Santander would continue making profits, paying dividends and generating capital Impact on Grupo Santander from stress test under an adverse scenario* EUR million Net operating income 2010-’11: +43,599 Dec09 on-balance sh
Slide 15: Stress test: adverse scenario 2011 surplus vs peers
2 STRESS TEST: adverse scenario 2011 16 Santander is the bank generating the highest earnings and the most profitable among the large groups analysed*... Surplus / Deficit (EUR million) Santander 14,416 12.1% Barclays 12,508 8.8% BNP Paribas 7,964 5.9% BBVA 6,834 11.4% Deutsche Bank 5,051 6.5% Rabob
Slide 16: Stress test: continue paying dividends, maintaining Tier I
2 STRESS TEST: adverse scenario 2011 17 ... which allows it to continue paying dividends, building up generic provisions and maintaining intact its Tier I TIER I (p.p.) Var. / 2009 (p.p.) Barclays 13.7 0.7 Santander 10.0 0.0 Nordea 10.1 -0.1 Intesa SP 8.2 -0.1 BBVA 9.3 -0.1 Lloyds 9.2 -0.4 After pay
Slide 17: High shareholder return
3 High SHAREHOLDER RETURN 18 Dividend + share performance (TSR: +14% in twelve months) puts SAN in the leading group of peers* and above banking indices Balance sheet strength and profits allow the Group to maintain its dividend policy during the crisis Remuneration per share 0.222 0.135 0.135 0.120
Slide 18: Strengthening our position in core markets
4 Strengthening our POSITION IN CORE MARKETS 19 Key events during the H1’10 SC US: Portfolios (HSBC, Citi) Servicing Mexico: acquisition of 25% minority interest UK: auction of 300 RBS corporate branches underway Germany: acquisition of retail business from SEB (173 branches, one million customers)
Slide 19: Agenda
Agenda 20 Group highlights H1’10 H1’10 Results Group Business areas Conclusions Appendix
Slide 20: Sound P&L account in Grupo Santander
Sound P&L account in Grupo Santander H1’10 21 Var. o/ H1’09 % excl. fx and EUR Mill. H1’10 Amount % perimeter** Net interest income 14,499 +1,844 +14.6 +3.7 A 1 Fees 4,809 +271 +6.0 -2.6 Trading gains and other* 1,565 -609 -28.0 -24.3 Gross income 20,874 +1,506 +7.8 -0.9 Operating expenses -8,811 -7
Slide 21: Operating profit growth. Commercial business drivers
Operating profit growth. Commercial business drivers 22 A Sound basic revenues (Net int. inc. + Fees + Insurance) % var. / same period previous year +11.3 +10.0 +2.0 H1’09 12M’09 H1’10 B Flat costs % var. / same period previous year +0.3 +0.4 +0.7 H1’09 12M’09 H1’10 C Strong deceleration of loan-los
Slide 22: Sound basic revenues
A Sound basic revenues 23 Net interest income + fee income + insurance EUR billion 10.0 9.2 9.2 9.5 9.1 8.3 2.6 2.4 2.3 2.4 Fees and 2.3 2.5 insurance activity 7.4 6.9 7.1 Net interest 6.0 6.6 6.8 income Q1’09 Q2 Q3 Q4 Q1’10 Q2 Volumes (Var. o/ Jun’09)* +18% +8% +0.1% Loans Deposits M. funds Basic r
Slide 23: Strict management of expenses
B Strict management of expenses 24 Operating expenses* EUR million 8,811 8,054 Perimeter and forex 8,113 H1’09 H1’10 Excl. perimeter and exchange rate: +0.7% Expenses by unit (excl. perimeter and exchange rate) Var. (%) o/ H1’09 SAN network -1.0% Banesto -0.2% SCF - -2.8% Portugal -1.0% United Kingd
Slide 24: Slower growth in loan-loss provisions
C Slower growth in loan-loss provisions 25 Group loan-loss provisions* EUR million +3% 2,417 2,574 2,284 2,436 2,483 2,209 Q1’09 Q2 Q3 Q4 Q1’10 Q2 H1’10 / H1’09: -4.1% (excl. exchange rate and perimeter) (*) Including country-risk Specific provisions EUR million 3,597 2,833 2,811 2,926 2,694 2,637 3
Slide 25: Agenda
Agenda 26 Group highlights H1’10 H1’10 Results Group Business areas Conclusions Appendix
Slide 26: Europe
27 EUROPE
Slide 27: Continental Europe main units
Continental Europe main units H1’10 28 EUR Mill. and % o/ H1’09 Networks in Spain and Portugal impacted by environment and deposit capturing campaign. Strong recovery of Santander Consumer Finance Gross income: 8,262 mill.; -0.6% SAN 2,590 -6% network Banesto 1,261 -3% Santander Consumer 2,193 +7% F
Slide 28: Santander Branch Network H1'10
Santander Branch Network H1’10 29 Activity Savings: +32% Jun’10 / Jun’09 +65% +31% - -4% Demand Time M. funds Deposits evolution EUR billion +15 87 88 82 79 72 72 73 Dec- Jan Feb Mar- Apr May Jun- 09 10 10 Loans +4% - -4% Net interest inc. / ATAs 3.36% 3.38% H1’09 H1’10 Jun’10 / Jun’09 Q2 annualised
Slide 29: Banesto H1'10
Banesto H1’10 30 Activity Savings: +13% Jun’10 / Jun’09 +23% +11% - -7% Demand Time M. funds Deposits evolution* EUR billion +8 47 43 45 41 40 40 39 Dec- Jan Feb Mar- Apr May Jun- 09 10 10 Loans Net interest inc. / ATAs** +4% - -1% 2.98% 3.00% H1’09 H1’10 Jun’10 / Jun’09 Q2 annualised Results Net op
Slide 30: Credit quality in Spain
Credit quality in Spain 31 Better credit quality and evolution than the sector in Spain NPLs and coverage Percentage NPLs Coverage 81 71 73 68 3.41 3.59 3.71 67 64 2.72 2.98 2.40 Mar’09 Jun Sep Dec Mar’10 Jun Mar’09 Jun Sep Dec Mar’10 Jun Grupo SAN vs. Sector % 5.03 5.29 5.47 (May.) Banks + Savings
Slide 31: Acquired real estate portfolio (June 2010)
Acquired real estate portfolio (June 2010) Gross portfolio: EUR 4.0 bill. Coverage: 33% Net portfolio: EUR 2.7 bill. Reduction in H1’10: EUR 0.2 billion Average loss on sales o/ acquisition price: 26% Net portfolio performance EUR billion 3.8 4.1 2.9 2.8 2.7 1.1 Jun Dec’08 Jun Dec’09 Mar’10 Jun Fore
Slide 32: Portugal H1'10
Portugal H1’10 33 Activity Savings: +15% Jun’10 / Jun’09 +14% +18% +8% Demand Time M. funds Deposits evolution EUR billion +3 18 18 17 17 15 15 15 Dec- ene feb Mar- abr may Jun- 09 10 10 Loans: +3% Jun’10 / Jun’09 +6% +3% +1% Individuals SMEs + Companies Businesses + GBM Net interest inc. / ATAs 1.7
Slide 33: Santander Consumer Finance H1'10
Santander Consumer Finance H1’10 34 Activity New lending Loans: +5% (Jun’10 / Jun’09) Var. in EUR +6% +2% - -4% 2009 / Q1’10 / H1’10 / 2008 Q1’09 H1’09 Var. in EUR +67% +18% +8% 0% - -17% US Nordic Italy Germany Spain countries Deposits In EUR +38% Germany campaign: € 1,900 mill. Jun’10 / Jun’09 Net
Slide 34: Santander Consumer Finance H1'10. Risks
Santander Consumer Finance H1’10. Risks 35 Very good evolution of coverage ratios and NPL indicators NPLs and coverage Percentage NPLs Coverage 5.13 5.46 5.39 5.12 5.23 4.63 108 111 90 92 97 89 Mar’09 Jun Sep Dec Mar’10 Jun Mar’09 Jun Sep Dec Mar’10 Jun Net NPL entries Base 100: Q1’09 100 90 82 79 4
Slide 35: United Kingdom
UNITED KINGDOM @® Santander
Slide 36: United Kingdom H1'10
United Kingdom H1’10 37 Further increase in profits strongly driven by retail banking Attributable profit: £875 mill. (EUR 1,006 million) Var. H1’10 / H1’09 in £ (%) Gross +6.0% income Expenses -0.1% Net operating +10.3% income Net oper. inc. net of +11.4% LLPs Attributable +10.7% profit Net operati
Slide 37: United Kingdom H1'10: credit quality indicators
United Kingdom H1’10 39 Improvement in all credit quality indicators Low risk profile Residential mortgage portfolio aimed at first home ... Average LTV: 51% Income multiple new business: 2.9 ... no exposure to self-certified loans and 1% in buy to let Reduction of non core assets 11.5 - -50% Treasu
Slide 38: Brazil
40 BRAZIL
Slide 39: Brazil H1'10
Brazil H1’10 41 Good quarterly trend in profits, loans and risk quality. Impact from higher minority interest on year-on-year profits Attributable profit: US$1,711 mill. (EUR 1,294 mill.) Var. H1’10 / H1’09 in constant US$ (%) Net interest +7.1% income + fees Gross income +5.1% Expenses +2.5% Net op
Slide 40: Brazil H1'10 Activity
Brazil H1’10 42 Activity* Total lending Q2’10 performance (Var. Jun’10 / Mar’10 annualised) +20% +18% +19% +22% +3% +10% Individuals Consumer Business + Corporate + Jun’10 / Q2 annuali. finance companies GBM Jun’09 Savings: -1% (Var. Jun’10 / Jun’09) +19% +12% - -25% Demand Time M. funds Results Net
Slide 41: Brazil H1'10. Risks
Brazil H1’10. Risks 43 Good trend in credit quality ratios NPLs and coverage % NPLs Coverage 107 100 98 95 99 92 4.75 5.09 5.27 5.04 5.01 3.86 Mar’09 Jun Sep Dec Mar’10 Jun Mar’09 Jun Sep Dec Mar’10 Jun Net NPL entries Base 100: Q1’09 156 100 122 111 113 98 Q1’09 Q2 Q3 Q4 Q1’10 Q2 Provisions o/ net
Slide 42: Latam ex-Brazil
44 LATAM ex-BRAZIL
Slide 43: Latin America ex-Brazil H1'10
Latin America ex-Brazil H1’10 45 Constant US$ million and % o/ H1’09 Latam ex-Brazil generates US$1,145 million of profits. Of note was the profit growth in Mexico, Argentina and Uruguay Attributable profit H1’10 H1’09 Change Mexico 385 336 +14.8 Chile 398 382 +4.4 Argentina* 183 134 +35.7 Uruguay 4
Slide 44: Mexico H1'10
Mexico H1’10 46 Activity* Total lending Q2’10 performance (Var. Jun’10 / Mar’10 annualised) +40% +21% +20% +13% - -5% -24% Non card Cards SMEs + Corporate + holders companies GBM Jun’10 / Q2 annuali. Jun’09 Savings: +11% Net interest inc. / ATAs Var. Jun’10 / Jun’09 Local currency 4.25% +13% +13% 3.
Slide 45: Mexico H1'10. Risks
Mexico H1’10. Risks 47 Significant improvement in all credit quality indicators NPLs and coverage % NPLs Coverage 264 268 257 221 3.04 128 122 2.80 2.45 1.84 1.86 1.77 Mar’09 Jun Sep Dec Mar’10 Jun Mar’09 Jun Sep Dec Mar’10 Jun Net NPL entries Base 100: Q1’09 100 102 83 72 55 54 Q1’09 Q2 Q3 Q4 Q1’10
Slide 46: Chile H1'10
Chile H1’10 48 Activity* Total lending Q2’10 performance (Var. Jun’10 / Mar’10 annualised) +17% +17% +17% +19% +8% Jun’10 / Q2 annualis. Individuals SMEs + Corporate + GBM Jun’09 companies Savings: +2% Net interest inc. / ATAs Var. Jun’10 / Jun’09 Local currency 4.54% +30% 4.11% +5% - -11% H1’09 H1’
Slide 47: Chile H1'10. Risks
Chile H1’10. Risks 49 Good evolution of indicators within the earthquake context NPLs and coverage % NPLs Coverage 95 94 94 99 97 89 3.30 3.38 3.20 3.36 3.31 3.05 Mar’09 Jun Sep Dec Mar’10 Jun Mar’09 Jun Sep Dec Mar’10 Jun Net NPL entries Base 100: Q1’09 100 70 75 73 59 59 Q1’09 Q2 Q3 Q4 Q1’10 Q2 Pr
Slide 48: Sovereign
50 SOVEREIGN
Slide 49: Sovereign H1'10
Sovereign H1’10 51 Normalised profit driven by good evolution of revenues, costs and provisions Activity* Total lending Q2’10 performance (Var. Jun’10 / Mar’10 annualised) +26% +2% +8% +0% - -7% -51% Jun’10 / Q2 annualis. Multifamily + Commercial Other core Run-off Jun’09 residential & industrial le
Slide 50: Sovereign H1'10. Risks
Sovereign H1’10. Risks 52 Good trend in credit quality ratios NPLs and coverage % NPLs Coverage 66 67 68 67 62 65 5.35 5.14 5.11 4.34 4.82 3.98 Mar’09 Jun Sep Dec Mar’10 Jun Mar’09 Jun Sep Dec Mar’10 Jun Net NPL entries Base 100: H1’09 quarterly average 100 97 98 36 13 Average Q3 Q4 Q1’10 Q2 H1’09 P
Slide 51: Corporate Activities
53 CORPORATE ACTIVITIES
Slide 52: Corporate Activities
Corporate Activities 54 Higher negative contribution because of losses on financial transactions Attributable profit (Change H1’10 vs. H1’09) Main impacts: EUR million Net interest income -83 Gains/losses on financial transactions -536 Expenses +12 Other items and taxes +12 Total impact on profit: -
Slide 53: Secondary Segments
55 SECONDARY SEGMENTS
Slide 54: Secondary segments: attributable profit to the Group
Secondary segments*. Attributable profit to the Group 56 Retail Banking EUR million +19% 2,192 2,049 1,798 1,845 1,920 1,854 +7% Q1’09 Q2 Q3 Q4 Q1’10 Q2 Global Wholesale Banking EUR million - -22% 679 822 679 779 642 568 - -18% Q1’09 Q2 Q3 Q4 Q1’10 Q2 Asset Management and Insurance EUR million - -1%
Slide 55: Agenda
Agenda 57 Group highlights H1’10 H1’10 Results Group Business areas Conclusions Appendix
Slide 56: H1'10. Summary
H1’10. Summary 58 1 Solid profits generation ... ...backed by diversification _____ .... and by managing growth in a dual world Attrib. profit Q2’10: EUR 2,230 million Attrib. profit H1’10: EUR 4,445 million 2 Balance sheet strength... ...comfortable liquidity and solvency _____ .... credit quality
Slide 57: In the coming quarters
In the coming quarters ... 59 Economic and financial environment Mature markets: lower lending growth because of deleveraging process Emerging markets: undergoing recovery of activity Regulatory uncertainties: liquidity and capital requirements SAN management of business drivers Consolidate volumes
Slide 58: Agenda
Agenda 60 Group highlights H1’10 H1’10 Results Group Business areas Conclusions Appendix
Slide 59: Appendix
61 Appendix Group’s balance sheet Principal segments results Secondary segments results Main units spreads, NPL and coverage ratios
Slide 60: Group's balance sheet
62 Group’s balance sheet
Slide 61: Main trends of the Group's balance sheet
Main trends of the Group’s balance sheet 63 Retail balance sheet, appropriate to the business nature of low risk, liquid and well capitalised Balance sheet at June 2010 EUR billion 1,220 1,220 Credit Cashinstitutions and credit 153 2 institutions 127 95 3 Derivatives 103 Derivatives 41 74 Other AFS
Slide 62: Principal segments results
64 Principal segments results
Slide 63: Business areas performance in EUR
Business areas performance. In EUR 65 Continental Europe: Retial units € Mill. -10% 1,046 1,024 950 1,030 882 923 Q1’09 Q2 Q3 Q4 Q1’10 Q2 Continental Europe: GBM and other € Mill. - -31% 380 318 339 255 261 175 Q1’09 Q2 Q3 Q4 Q1’10 Q2 United Kingdom € Mill. +11% 475 480 527 409 430 412 Q1’09 Q2 Q3 Q
Slide 64: Business areas evolution excluding exchange rate impact
Business areas evolution excluding EXCHANGE RATE IMPACT 66 Continental Europe: Retail Units € Mill. -10% 1,046 1,024 950 1,030 882 923 Q1’09 Q2 Q3 Q4 Q1’10 Q2 Continental Europe: GBM and other € Mill. - -31% 380 318 339 255 261 175 Q1’09 Q2 Q3 Q4 Q1’10 Q2 United Kingdom £ Mill. +7% 419 426 449 372 3
Slide 65: Secondary segments results
67 Secondary segments results
Slide 66: Retail Banking
Retail Banking 68 Good quarterly trend due to higher revenues, cost control and stable provisions Retail Banking Var. H1’10 / H1’09 (%) in EUR Excl. fx and perimeter Gross +12.3% +3% income Expenses +9.5% 0% Net operating +14.3% +5% income Net oper. inc. net of +22.4% +14% LLPs Attributable +16.4% +
Slide 67: Global Wholesale Banking (GBM)
Global Wholesale Banking (GBM) 69 Solid revenues and profit generation which compared well with a record first half of 2009 in a favourable scenario of spreads and volatilities Attributable profit: EUR 1,421 million Var. H1’10 / H1’09 Gross +3.0% income Expenses +19.8% Net operating -1.7% income Net
Slide 68: Global Wholesale Banking: recurring model focused on customers
Global Wholesale Banking (GBM) 70 Recurring model focused on customers and with a low risk profile Solid revenues generation ... By customer revenues Gross income ( € mill.) 1,460 1,451 1,387 Total 1,297 1,311 195 282 150 Trading 143 176 1,116 110 Customers 1,154 1,265 1,169 1,237 1,135 1,006 Q1’09
Slide 69: Asset Management and Insurance
Asset Management and Insurance 71 High contribution to the Group via revenues and profits Total Group revenues (cross-selling) In H1’10: € 1,953 mill. = 9% of of gross income from Group’s funds and insurance revenues (+9% o/ H1’09) Attributable profit to the Group After deducting expenses and fees p
Slide 70: Main units spreads and NPL ratios
72 Main units spreads and NPL ratios Continental Europe. Main units spreads (%)
Slide 71: Continental Europe. Main units spreads
73 SAN Branch Network 3.40 3.15 3.00 2.78 2.60 2.04 2.21 2.26 2.32 2.25 2.10 1.94 1.19 0.89 0.68 0.53 0.50 0.10 Q1’09 Q2 Q3 Q4 Q1’10 Q2 Loans Deposits Total Santander Consumer Lending 4.39 4.54 4.67 4.77 4.80 4.85 Q1’09 Q2 Q3 Q4 Q1’10 Q2 Banesto Retail Banking 2.69 2.51 2.27 2.28 2.20 2.00 1.90 1.94
Slide 72: Continental Europe. NPLs and coverage ratios
Continental Europe. NPLs and coverage ratios 74 Banco Santander* 78% 69% 63% 73% 66% 61% 2.35% 2.59% 2.82% 3.41% 3.61% 3.65% Mar’09 Jun’09 Sep’09 Dec’09 Mar’10 Jun’10 NPLs Coverage Santander Consumer 89% 90% 92% 97% 108% 111% 5.14% 5.46% 5.39% 5.12% 5.23% 4.64% Mar’09 Jun’09 Sep’09 Dec’09 Mar’10 Jun
Slide 73: Spain: risk in construction and real estate activities
Spain: risk in construction and real estate activities 75 Construction and real estate lending portfolio in Spain Data at June 2010 Lending exposure* ( € billion): 39.7 — Real estate activity 31.0 - - of which developer (13.5) — Construction 8.7 Better credit quality than the sector by NPLs ... — NP
Slide 74: Spain: exposure to construction and real estate activities
Spain: exposure to construction and real estate activities 76 NPLs volume + substandard + acquired + foreclosed + write-offs Estimated SAN + Bto share in “problem” loans 8% vs 14% — 15% in loans EUR billion 15.5 SAN + Bto (Jun’10) Share / real estate + const. loans NPLs: 7.9% Substandard: 11.1% Acq.
Slide 75: United Kingdom. Spreads and NPL ratios
77 Spreads Retail Banking 2.22 2.25 2.31 2.31 2.31 2.04 1.13 1.82 1.90 2.01 1.44 1.67 0.91 0.78 0.58 0.49 0.41 0.30 Q1’09 Q2 Q3 Q4 Q1’10 Q2 Loans Deposits Total NPLs and coverage 56% 45% 48% (*) 44% 40% 41% 1.25% 1.54% 1.65% 1.71% 1.87% 1.84% Mar’09 Jun’09 Sep’09 Dec’09 Mar’10 Jun’10 NPLs Coverage (
Slide 76: Exchange rates. Latin America H1'10
Exchange rates. Latin America H1’10 78 Appreciation of Latin American currencies against the dollar and euro AVERAGE RATES EUR / LOCAL CCY. US DOLLAR BRAZILIAN REAL NEW MEXICAN PESO CHILEAN PESO AVERAGE RATES US$ / LOCAL CCY. BRAZILIAN REAL NEW MEXICAN PESO CHILEAN PESO H1’10 H1’09 Var. 1.3225 1.331
Slide 77: Spreads main countries Latin America
Spreads main countries Latin America 79 (%) Retail Banking Brazil 17.01 17.43 16.68 16.02 16.13 16.23 15.94 16.39 15.81 15.12 15.26 15.29 1.07 1.04 0.87 0.90 0.87 0.94 Q1’09 Q2 Q3 Q4 Q1’10 Q2 Loans Deposits Total Retail Banking Mexico 14.19 13.35 12.49 12.28 12.08 11.42 10.83 10.77 10.40 10.21 10.03
Slide 78: Latin America. NPLs and coverage ratios
Latin America. NPLs and coverage ratios 80 Brazil 107% 92% 95% 99% 100% 98% 3.86% 4.75% 5.09% 5.27% 5.04% 5.01% Mar’09 Jun’09 Sep’09 Dec’09 Mar’10 Jun’10 NPLs Coverage Mexico 221% 264% 268% 257% 128% 122% 2.80% 3.04% 2.45% 1.84% 1.86% 1.77% Mar’09 Jun’09 Sep’09 Dec’09 Mar’10 Jun’10 NPLs Coverage Chi
Slide 79: Sovereign. Spreads and NPL and coverage ratios
81 Spreads 2.68 2.71 2.88 2.95 2.60 2.30 1.88 1.90 1.88 1.91 1.94 1.96 0.94 0.99 0.42 0.70 0.80 0.80 Q1’09 Q2 Q3 Q4 Q1’10 Q2 Loans Deposits Total NPLs and coverage 66% 67% 68% 62% 64% 67% 3.98% 4.34% 4.82% 5.35% 5.14% 5.11% Mar’09 Jun’09 Sep’09 Dec’09 Mar’10 Jun’10 NPLs Coverage
Slide 80: 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: July 29 th , 2010 By: /s/ José Antonio Álvarez Name: José Antonio Álvarez Ti