Banco Santander, S.a. · BME:SAN
Banco Santander — H1 2022 Earnings Presentation
110 slides from Banco Santander's earnings presentation, Jul 30, 2022
Slide 1: Earnings Presentation H1'22
28 July 2022 Earnings Presentation — H1’22
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 H1’22 Highlights Group and Business Final Appendix areas review remarks 4
Slide 5: We are executing our strategy to drive greater growth, profitability and strength
We are executing our strategy to drive greater growth, profitability and strength Growth Profitability Strength YoY percentage changes H1’22 data and YoY percentage change H1’22 data and YoY percentage change Total customers +5% Profit €4,894mn CoR 0.83% Digital customers +10% Digital sales / total
Slide 6: Steady customer growth reflected in volume increases in all products and segments
Steady customer growth and commercial strategy reflected in volumes increases in all products and segments Customer loans: +6% YoY Customer deposits: +5% YoY €391bn +4% €344bn +7% €718bn +3% SCIB €280bn +6% 142 +20% +13% Other Private Bkg 26 +5% 14 Cards 17 +16% Non-Auto 74 +6% SMEs & Corporates 249
Slide 7: Continued profit momentum, maintaining main P&L trends
Continued profit momentum, maintaining main P&L trends: top line growth, greater sustainable efficiencies and LLP normalization Contribution Underlying to Group’s attributable profit % change underlying profit2 (€ mn) € million H1'22 H1'21 Euros Constant euros 652 736 NII 18,409 16,196 14 7 31% Euro
Slide 8: Solid customer, volume and profit growth supported by all regions
The Group’s solid customer, volume and profit growth was supported by all our regions and businesses H1’22 Total Customer Customer Net operating Underlying vs. H1’21 customers loans deposits income att. profit RoTE1 (mn) (€bn) (€bn) (€mn) (€mn) 46.4 589 609 4,417 1,839 12.1% 8.8% Europe +1% +5% +5%
Slide 9: Positive performance in key metrics
Positive performance in key metrics … Efficiency ratio 46.2% 45.5% • Best-in-class efficiency, supported by higher revenue and 45.0% ongoing cost management • Our transformation plan continues to progress towards a more integrated and digital operating model FY'21 H1'22 2022 target RoTE 13.7% >13.0%
Slide 10: Delivering shareholder value
… while delivering shareholder value EPS € cents • EPS +38% YoY (+19% vs H1’21 underlying EPS) 27.2 • Sustained earnings per share growth, driven by higher profit and 19.7 share buybacks • 546mn shares amortized this year through buybacks (3.2% of capital) H1'21 H1'22 TNAV per share € 4.24 3.98 • Pe
Slide 11: Continued organic generation, maintaining the CET1 ratio above 12%
Continued organic generation, maintaining the CET1 ratio above 12% Q2 fully-loaded CET1 ratio performance % • Continued profit growth +0.26 +0.03 – RoTE 13.7% (12.0% in FY’21) 12.05 -0.08 12.05 -0.05 -0.16 • Disciplined capital allocation strategy with: – RWAs rising below loan growth +1% < +6% (exc
Slide 12: Supporting the green transition of our customers
Supporting the green transition of our customers, committed to our climate change goals and financial inclusion Decarbonization targets1 2030 (vs 2019) Key sustainability metrics Social & Governance Green finance3 Financially Power generation -46% empowered people emissions intensity Thermal coal-re
Slide 13: Index
Index 1 2 3 4 H1’22 Highlights Group and Business Final Appendix areas review remarks 13
Slide 14: We maintained the main P&L trends in a quarter impacted by regulatory charges
We maintained the main P&L trends in a quarter impacted by regulatory charges1 Attributable profit % change € mn € million H1'22 H1'21 Euros Constant euros NII 18,409 16,196 14 7 2,543 Net fee income 5,852 5,169 13 7 2,351 2,174 2,275 Trading and other income 859 1,330 -35 -40 2,138 2,067 Total reve
Slide 15: Revenue up boosted by NII and fees
Revenue up boosted by NII and fees, partly offset by lower trading gains and other income Total revenue Revenue breakdown Constant € mn 12,546 12,574 Constant € bn 11,971 Revenue 24.1 25.1 9,384 9,025 0.9 8,722 Other income 1.4 NII 5.9 Fees 5.5 2,865 2,987 2,761 Fees Trading NII 17.2 18.4 256 393 35
Slide 16: Sustained NII growth with improvements in volumes and NIM
Sustained NII growth with improvements in both volumes and NIM NII performance by country NII Loans Deposits NIM1 YoY changes in constant euros H1’21 H1’22 Group +7% +6% +5% 2.38% 2.49% Spain -6% +7% +12% 1.06% 0.95% • Spain: pressure on yields and smaller ALCO portfolio • UK: higher interest rates
Slide 17: Net fee income backed by customer activity
Net fee income backed by customer activity and growth in higher value-added products Net fee income YoY changes in constant euros Activity YoY changes in constant euros Group +7% Cards turnover PoS turnover Transactional fees Europe +7% +7% -17% +20% +30% +9% +17% +8% North America -1% -17% +16% Ins
Slide 18: Structural changes to our operating model driving sustainable efficiencies
We continue to make structural changes to our operating model, driving sustainable efficiencies and mitigating the effects of overall higher inflation Costs by region Efficiency ratio YoY changes in constant euros In real terms1 H1’22 YoY change Group +5% -4.1% Group 45.5% -0.2pp Europe -1% -6.8% Eu
Slide 19: Asset quality remains robust with LLPs normalizing
Asset quality remains robust with LLPs normalizing following releases in 2021 Credit quality Loan-loss provisions Constant € bn Jun-21 Mar-22 Jun-22 CoR2 0.94% 0.77% 0.83% 2.3 2.6 NPL ratio 3.22% 3.26% 3 3.05% 2.1 2.2 1.9 Coverage ratio 73% 69% 71% 1.6 Stage 1 €904bn €967bn €998bn Stage 2 €70bn €68b
Slide 20: Cost of risk remained at low levels in most countries
Cost of risk remained at low levels in most countries CoR1 performance by country Dec-21 Jun-22 Group 0.77% 0.83% Spain 0.92% 0.79% • Spain: lower LLPs with improved credit quality • UK: gradual normalization after releases in Q2 and Q4’21 UK -0.09% -0.02% • Portugal: LLP releases in 2021 Portugal 0
Slide 21: Highly-collateralized and diversified portfolio with a medium-low risk profile
Highly-collateralized and diversified portfolio with a medium-low risk profile Loan portfolio breakdown Jun-22 DCB, Spain, 12% 25% Unsecured, Other South Am. 2% 35% Chile, 4% €1,015bn €1,015bn Brazil, 9% Secured, UK, 25% 65% Mexico, 4% Poland 3% Other Europe, 1% US, Portugal, 11% 4% Mature Developin
Slide 22: Detail by country and business
Detail by country and business 22
Slide 23: Spain / UK
Spain UK • Growing customer base every month in 2022, reflected in • Strong net mortgage lending (£7bn) and higher rates in individuals’ business (loans, deposits and insurance up) • Profit up YoY fuelled by NII and efficiency gains, but • Profit growth due to CoR improvement and cost control partia
Slide 24: USA / Mexico
USA Mexico • Loans (auto, consumer and CIB) and deposits increased in a • Successful customer attraction strategy (+10% loyal highly competitive market customers YoY) reflected in volumes • High profit (>€1bn) despite credit normalization, • Outstanding results driven by customer revenue and lower c
Slide 25: Brazil / DCB
Brazil DCB • Volumes increased supported by double-digit growth in • Significant market share gains as new lending (+10% YoY) loans to individuals and SMEs. #1 in NPS outpaced a shrinking market • Revenue up YoY maintaining efficiency ratio c.30% and high • Solid top line growth (new business) and c
Slide 26: Global businesses / Payments / Cards
Global businesses Payments • SCIB: solid profit increase driven by double-digit growth in • PagoNxt: revenue grew 87% due to overall increase in all core businesses and strict efficiency management business activity and volumes across regions • WM&I: double-digit increase thanks to our diversified v
Slide 27: Index
Index 1 2 3 4 H1’22 Highlights Group and Business Final Appendix areas review remarks 27
Slide 28: Final remarks
Final remarks • In an uncertain environment, we expect revenue to improve: Revenue • NII should increase in the coming quarters, benefitting from interest rate hikes and expected activity levels, accelerating in 2023 • Fee income supported by commercial activity and global business growth (SCIB, WM&
Slide 29: Index
Index 1 2 3 4 Highlights and Business Final Appendix Group performance areas review remarks 29
Slide 30: Appendix
Appendix Primary and Secondary segments 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: Europe
Europe Highlights Key data and P&L • Accelerating our business transformation to deliver Loans Deposits Mutual Funds profitable growth, delivering RoTE increase €589bn +5% €609bn +5% €97bn -6% • Overall volumes growth both in loans and deposits reflecting high customer growth and loyalty Efficiency
Slide 32: Portugal / Poland
Portugal Poland • Strengthened customer loyalty (#1 in NPS) and increased • Five-fold profit increase driven by NII (interest rates and activity in mortgages and protection insurance volumes), fee income and cost growth below inflation • Growth in fees, further efficiency gains (costs: -13% YoY) • Q
Slide 33: North America
North America Highlights Key data and P&L • Greater customer base and enhanced customer Loans Deposits Mutual Funds experience through tailored products and services €152bn +7% €124bn +4% €27bn -2% Efficiency CoR1 RoTE2 • Overall volumes growth QoQ and YoY, boosted by positive performance across seg
Slide 34: 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 €148bn +12% €124bn +5% €57bn +4% • Overall YoY customer base growth. We ranked Top 3 in NPS Efficiency CoR1 RoTE2 in all m
Slide 35: Chile / Argentina
Chile Argentina • Focus on expanding Getnet, Superdigital, Life and Prospera, • Loan growth boosted by the local currency portfolio and in boosting banking penetration. #1 in NPS auto, SME and corporate loans • Profit up YoY backed by strong revenue growth, improved • Profit up YoY driven by revenue
Slide 36: Uruguay & Andean region
Uruguay & Andean region • Strong customer loyalty reflected in double-digit loan growth • Higher net interest income drove the rise in profit and high profitability Uruguay Peru Colombia Underlying Underlying Underlying RoTE1 RoTE1 RoTE1 att. profit att. profit att. profit 60 +3% 30.1% 33 +18% 19.0%
Slide 37: Global businesses
Global businesses Corporate & Investment Banking Wealth Management & Insurance • Solid profit increase driven by double-digit growth in all core • Double-digit growth on a like-for-like basis (+15%), thanks businesses, making it a record quarter for the franchise to our diversified value-added propo
Slide 38: PagoNxt / Cards
PagoNxt Cards • Merchant Acquiring: Total Payments Volume rose 35% backed • 96 million cards managed globally by Brazil (+23%), Europe (+53%) and Mexico (+38%) • Double-digit revenue growth YoY in Americas and Europe • Revenue grew at high double-digit rates due to overall increase of business activ
Slide 39: Corporate Centre
Corporate Centre Highlights Income statement P&L* H1'22 H1'21 • NII affected due to the higher liquidity buffer to strengthen our position NII -353 -297 Gains/Losses on Financial -371 -96 Transactions • Negative FX hedging results offset by the positive Operating expenses -179 -160 performance of ex
Slide 40: Appendix
Appendix Primary and Secondary segments 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: 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, Jun-22 1,373 1,373 Liquidity Coverage Net Stable Funding Ratio (LCR) Ratio (NSFR) 1 Customer Jun-22 Mar-22 Mar-22 Loans a
Slide 42: Balance sheet positioned to benefit from expected rate increases
Our balance sheet structure positions us to benefit from expected market rate increases, particularly in year 2 once balance sheets have fully repriced Generally positive NII sensitivity… 12 month NII sensitivity to a +/-100 bp parallel shift scenario € mn, May-22 +100 bps -100 bps 1 Loan portfolios
Slide 43: Conservative and decentralized liquidity and funding model
Conservative and decentralized liquidity and funding model €23bn1 issued in public markets in H1’22 Very manageable maturity profile € bn, Jun-22, Average exchange rates € bn, Jun-22 18.1 Covered 7.7 6.9 3.5 3.9 12.4 Bonds 2.9 2.3 18.0 0.3 12.6 12.9 0.9 1.2 7.4 Senior 4.9 4.5 5.2 5.0 0.4 1.3 23.2 7.
Slide 44: YTD issuances against 2022 funding plan
YTD issuances against 2022 funding plan Execution of 2022 funding plan € bn, Jun-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 11.6 - - 12 - 13.5 13.4 SCF - 0.0 5-6 1.2 0 - 0.5 - 5 - 6.5 1.2 UK - 0.0 3-4 1.6 0
Slide 45: 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* Assumed capital requirements (fully-loaded)** Mar-22 Jun-22 Mar-22 Jun-22 16.39% 16.18% 2.54% T2 16.08% 15.95% 13.01% +338 bps +317bps 2.47% >15% AT1 +321 bps +307bp
Slide 46: TLAC/MREL for the Resolution Group
TLAC/MREL for the Resolution Group headed by Banco Santander, S.A. TLAC Jun-22(e) MREL Jun-22(e) % % and € bn Requirement 36.0% Requirement CBR 3.5% CBR 136.2 Surplus 3.5% Surplus Senior 19.3 24.1% 25.4 SNP 2.6% 2.4 Sub debt 3.5% 10.9 T2 Req. + CBR 15.4% 8 AT1 32.5%2 29.0% 2.2% Req. + CBR 8.5% 21.5%
Slide 47: Appendix
Appendix Primary and Secondary segments 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 47
Slide 48: Yield on loans (%)
Yield on loans (%) Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Europe 2.06 2.02 1.98 1.99 2.08 2.23 Spain 1.84 1.78 1.68 1.69 1.73 1.78 United Kingdom 2.27 2.25 2.27 2.23 2.23 2.30 Portugal 1.52 1.47 1.44 1.41 1.42 1.45 Poland 2.90 2.91 2.93 3.31 4.64 6.21 North America 7.71 7.59 7.48 7.38 7.37 7.63 US 6.91
Slide 49: Cost of deposits (%)
Cost of deposits (%) Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Europe 0.11 0.08 0.07 0.07 0.08 0.14 Spain 0.05 0.05 0.05 0.05 0.05 0.05 United Kingdom 0.21 0.14 0.11 0.10 0.12 0.21 Portugal 0.02 0.01 0.01 0.01 0.00 0.00 Poland 0.06 0.04 0.02 0.04 0.16 0.49 North America 0.65 0.61 0.65 0.67 0.73 0.88 US 0.
Slide 50: Appendix
Appendix Primary and Secondary segments 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 50
Slide 51: Stage coverage
Stage coverage Exposure ¹ Coverage Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Stage 1 885 904 912 929 967 998 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% Stage 2 70 70 67 71 68 66 8.1% 8.2% 8.6% 7.7% 8.0% 8.5% Stage 3 32 33 33 33 36 34 42.5% 42.2% 43.0% 41.3% 41.0% 40.1% (
Slide 52: NPL ratio (%)
NPL ratio (%) Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Europe 3.26 3.30 3.15 3.12 3.01 2.63 Spain 4.98 5.16 4.86 4.72 4.47 3.83 United Kingdom 1.35 1.30 1.27 1.43 1.42 1.17 Portugal 3.84 3.71 3.44 3.44 3.42 3.33 Poland 4.82 4.58 4.34 3.61 3.50 3.45 North America 2.39 2.28 2.56 2.42 2.83 2.71 US 2.1
Slide 53: Total coverage ratio (%)
Total coverage ratio (%) Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Europe 50.0 48.4 51.1 49.4 49.1 50.2 Spain 48.0 45.7 49.6 51.4 50.4 49.4 United Kingdom 40.5 37.4 36.6 25.8 26.1 32.9 Portugal 69.2 73.0 75.5 71.7 72.8 74.3 Poland 70.3 72.4 74.6 73.9 78.5 76.0 North America 153.4 152.3 139.3 134.9 1
Slide 54: Credit impaired loans and loan-loss allowances by operating area
Credit impaired loans and loan-loss allowances. Breakdown by operating areas. June 2022 Credit impaired loans Loan-loss allowances Digital Consumer Digital Consumer Bank, 8.0% Bank, 10.7% Other South America, 0.5% Argentina, 0.5% Other South America, 0.8% Argentina, 1.1% Spain, 23.6% Chile, 6.1% Spa
Slide 55: Cost of risk (%)
Cost of risk (%) Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Europe 0.51 0.49 0.48 0.39 0.37 0.37 Spain 0.79 0.91 0.97 0.92 0.88 0.79 United Kingdom 0.21 0.09 0.01 (0.09) (0.08) (0.02) Portugal 0.38 0.41 0.35 0.09 0.03 (0.05) Poland 1.02 0.88 0.82 0.67 0.65 0.95 North America 2.34 1.67 1.46 0.93 0.93
Slide 56: Appendix
Appendix Primary and Secondary segments 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 56
Slide 57: Progress on ESG agenda and new decarbonization targets
We continue to make progress on our ESG agenda and added three new decarbonization targets 2018 2019 2020 2021 H1’22 2025 / 2030 target 43% 50% 57% 75% 100% 120bn by 2025 19bn 33.8bn 65.7bn 74.4bn 220bn by 2030 27.0bn 30.1bn 100bn by 2025 7.0 bn 0 by 2030 0.21 0.17 0.11 tCO2e / MWh in 2030 23.84 16.
Slide 58: Appendix
Appendix Primary and Secondary segments 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 58
Slide 59: Santander Group (EUR mn)
SANTANDER GROUP (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 7,956 8,240 8,458 8,716 8,855 9,554 +7.9% 16,196 18,409 +13.7% Net fee income 2,548 2,621 2,641 2,692 2,812 3,040 +8.1% 5,169 5,852 +13.2% Gains (losses) on financia
Slide 60: Santander Group (Constant EUR mn)
SANTANDER GROUP (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 8,504 8,722 8,861 9,162 9,025 9,384 +4.0% 17,226 18,409 +6.9% Net fee income 2,710 2,761 2,740 2,817 2,865 2,987 +4.2% 5,471 5,852 +7.0% Gains (losses) on f
Slide 61: Europe (EUR mn)
Europe (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 2,551 2,656 2,650 2,717 2,839 2,981 +5.0% 5,207 5,820 +11.8% Net fee income 1,072 1,086 1,080 1,107 1,154 1,162 +0.7% 2,157 2,316 +7.3% Gains (losses) on financial transactio
Slide 62: Europe (Constant EUR mn)
Europe (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 2,586 2,680 2,668 2,725 2,831 2,989 +5.6% 5,266 5,820 +10.5% Net fee income 1,077 1,088 1,081 1,108 1,154 1,162 +0.7% 2,165 2,316 +7.0% Gains (losses) on financial t
Slide 63: Spain (EUR mn)
Spain (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 1,074 1,065 998 1,028 998 1,017 +2.0% 2,139 2,015 -5.8% Net fee income 684 693 679 732 745 730 -2.1% 1,378 1,475 +7.1% Gains (losses) on financial transactions and other 310 7
Slide 64: United Kingdom (EUR mn)
United Kingdom (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 989 1,088 1,156 1,151 1,192 1,227 +2.9% 2,076 2,418 +16.5% Net fee income 120 117 114 82 92 110 +19.1% 238 202 -15.0% Gains (losses) on financial transactions and oth
Slide 65: United Kingdom (Constant EUR mn)
United Kingdom (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 1,025 1,114 1,175 1,159 1,184 1,235 +4.3% 2,139 2,418 +13.1% Net fee income 125 120 116 82 92 110 +20.6% 245 202 -17.5% Gains (losses) on financial transacti
Slide 66: United Kingdom (GBP mn)
United Kingdom (GBP mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 864 938 989 976 997 1,040 +4.3% 1,802 2,037 +13.1% Net fee income 105 101 97 69 77 93 +20.6% 206 170 -17.5% Gains (losses) on financial transactions and other (8) (5)
Slide 67: Portugal (EUR mn)
Portugal (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 185 184 178 174 170 171 +0.5% 370 340 -8.0% Net fee income 99 110 115 116 122 123 +0.6% 210 245 +16.8% Gains (losses) on financial transactions and other 135 1 12 2 41 (13)
Slide 68: Poland (EUR mn)
Poland (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 233 242 244 302 407 486 +19.4% 475 894 +88.1% Net fee income 127 126 133 132 138 130 -5.7% 253 268 +5.8% Gains (losses) on financial transactions and other (10) 41 21 26 (35)
Slide 69: Poland (Constant EUR mn)
Poland (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 228 237 240 300 406 488 +20.2% 465 894 +92.2% Net fee income 124 124 131 132 137 131 -5.1% 248 268 +8.1% Gains (losses) on financial transactions and other (10) 40 2
Slide 70: Poland (PLN mn)
Poland (PLN mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 1,057 1,098 1,112 1,389 1,881 2,261 +20.2% 2,155 4,142 +92.2% Net fee income 576 573 606 610 637 605 -5.1% 1,149 1,242 +8.1% Gains (losses) on financial transactions and othe
Slide 71: Other Europe (EUR mn)
Other Europe (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 71 76 75 61 72 80 +10.3% 147 152 +3.5% Net fee income 41 38 39 44 56 69 +23.1% 79 126 +58.2% Gains (losses) on financial transactions and other 6 (3) (1) (6) 21 9 -55.8
Slide 72: Other Europe (Constant EUR mn)
Other Europe (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 73 79 77 63 73 79 +7.6% 153 152 -0.5% Net fee income 45 41 41 46 57 68 +19.7% 85 126 +47.0% Gains (losses) on financial transactions and other 9 (3) (0) (6) 21
Slide 73: North America (EUR mn)
North America (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 1,971 1,977 2,037 2,086 2,131 2,352 +10.3% 3,949 4,483 +13.5% Net fee income 451 410 386 397 443 494 +11.6% 861 937 +8.8% Gains (losses) on financial transactions and
Slide 74: North America (Constant EUR mn)
North America (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 2,177 2,173 2,188 2,199 2,198 2,285 +4.0% 4,349 4,483 +3.1% Net fee income 498 448 412 418 458 479 +4.7% 946 937 -1.0% Gains (losses) on financial transaction
Slide 75: United States (EUR mn)
United States (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 1,310 1,300 1,332 1,356 1,378 1,499 +8.8% 2,610 2,877 +10.2% Net fee income 241 191 174 176 197 198 +0.5% 432 394 -8.8% Gains (losses) on financial transactions and ot
Slide 76: United States (Constant EUR mn)
United States (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 1,445 1,434 1,437 1,417 1,415 1,462 +3.3% 2,879 2,877 -0.1% Net fee income 265 211 187 183 202 192 -4.8% 477 394 -17.3% Gains (losses) on financial transactio
Slide 77: United States (USD mn)
United States (USD mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 1,578 1,567 1,569 1,548 1,546 1,597 +3.3% 3,145 3,143 -0.1% Net fee income 290 231 204 200 221 210 -4.8% 521 431 -17.3% Gains (losses) on financial transactions and ot
Slide 78: Mexico (EUR mn)
Mexico (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 661 678 705 730 753 853 +13.3% 1,339 1,606 +20.0% Net fee income 204 210 203 211 245 283 +15.5% 414 529 +27.6% Gains (losses) on financial transactions and other (6) (16) 5 (
Slide 79: Mexico (Constant EUR mn)
Mexico (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 732 738 751 782 782 824 +5.3% 1,470 1,606 +9.3% Net fee income 226 229 216 226 255 274 +7.4% 455 529 +16.2% Gains (losses) on financial transactions and other (7) (1
Slide 80: Mexico (MXN mn)
Mexico (MXN mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 16,201 16,346 16,630 17,312 17,319 18,241 +5.3% 32,547 35,560 +9.3% Net fee income 4,995 5,077 4,781 4,998 5,641 6,061 +7.4% 10,072 11,703 +16.2% Gains (losses) on financial
Slide 81: Other North America (EUR mn)
Other North America (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 0 0 0 0 0 (0) — 0 0 +32.6% Net fee income 7 8 9 10 1 13 — 14 14 -1.9% Gains (losses) on financial transactions and other (5) (2) 1 (4) 1 4 — (7) 5 — Total revenu
Slide 82: Other North America (Constant EUR mn)
Other North America (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 0 0 0 0 0 (0) — 0 0 +32.6% Net fee income 7 8 9 10 1 13 — 14 14 -1.9% Gains (losses) on financial transactions and other (5) (2) 1 (4) 1 4 — (7) 5 — Tot
Slide 83: South America (EUR mn)
South America (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 2,570 2,756 2,916 3,065 3,037 3,390 +11.6% 5,326 6,427 +20.7% Net fee income 842 928 956 995 1,013 1,162 +14.8% 1,770 2,175 +22.9% Gains (losses) on financial transact
Slide 84: South America (Constant EUR mn)
South America (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 2,872 3,016 3,144 3,390 3,151 3,276 +4.0% 5,888 6,427 +9.2% Net fee income 952 1,026 1,027 1,099 1,051 1,124 +6.9% 1,978 2,175 +10.0% Gains (losses) on financ
Slide 85: Brazil (EUR mn)
Brazil (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 1,778 1,917 2,081 2,091 2,143 2,279 +6.4% 3,696 4,421 +19.6% Net fee income 632 698 696 701 743 857 +15.4% 1,330 1,600 +20.3% Gains (losses) on financial transactions and oth
Slide 86: Brazil (Constant EUR mn)
Brazil (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 2,122 2,210 2,322 2,415 2,266 2,155 -4.9% 4,332 4,421 +2.1% Net fee income 754 805 775 810 786 814 +3.7% 1,559 1,600 +2.6% Gains (losses) on financial transactions a
Slide 87: Brazil (BRL mn)
Brazil (BRL mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 11,731 12,215 12,834 13,348 12,527 11,912 -4.9% 23,946 24,439 +2.1% Net fee income 4,169 4,450 4,285 4,476 4,342 4,501 +3.7% 8,619 8,844 +2.6% Gains (losses) on financial tra
Slide 88: Chile (EUR mn)
Chile (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 497 511 467 508 483 554 +14.8% 1,008 1,038 +3.0% Net fee income 95 96 104 100 112 110 -2.1% 190 222 +16.4% Gains (losses) on financial transactions and other 22 30 12 14 55 43
Slide 89: Chile (Constant EUR mn)
Chile (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 480 489 472 529 485 553 +14.0% 969 1,038 +7.0% Net fee income 92 92 104 104 112 109 -2.8% 183 222 +21.0% Gains (losses) on financial transactions and other 22 29 12 1
Slide 90: Chile (CLP mn)
Chile (CLP mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 433,496 441,440 425,810 477,726 437,644 498,964 +14.0% 874,937 936,608 +7.0% Net fee income 82,698 82,631 94,239 94,052 101,410 98,614 -2.8% 165,329 200,024 +21.0% Gains (loss
Slide 91: Argentina (EUR mn)
Argentina (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 203 234 267 361 300 432 +44.1% 437 732 +67.4% Net fee income 74 87 110 149 121 143 +18.6% 161 264 +63.4% Gains (losses) on financial transactions and other (16) (22) (13)
Slide 92: Argentina (Constant EUR mn)
Argentina (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 167 212 237 331 283 449 +58.9% 379 732 +92.9% Net fee income 61 79 98 136 114 150 +31.9% 140 264 +88.3% Gains (losses) on financial transactions and other (13) (2
Slide 93: Argentina (ARS mn)
Argentina (ARS mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 21,907 27,724 30,984 43,242 36,978 58,765 +58.9% 49,631 95,742 +92.9% Net fee income 7,977 10,342 12,802 17,770 14,875 19,625 +31.9% 18,318 34,500 +88.3% Gains (losses) on
Slide 94: Other South America (EUR mn)
Other South America (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 92 93 102 105 111 125 +12.2% 185 236 +27.4% Net fee income 41 46 45 46 38 52 +38.8% 88 90 +2.9% Gains (losses) on financial transactions and other 7 13 13 14 13
Slide 95: Other South America (Constant EUR mn)
Other South America (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 102 105 113 115 117 119 +2.3% 207 236 +14.3% Net fee income 45 51 50 49 40 51 +27.8% 96 90 -5.7% Gains (losses) on financial transactions and other 8 14
Slide 96: Digital Consumer Bank (EUR mn)
Digital Consumer Bank (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 996 1,015 1,017 1,014 1,020 1,012 -0.7% 2,010 2,032 +1.1% Net fee income 188 206 222 204 206 219 +6.1% 395 425 +7.5% Gains (losses) on financial transactions a
Slide 97: Digital Consumer Bank (Constant EUR mn)
Digital Consumer Bank (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 1,003 1,017 1,023 1,014 1,018 1,014 -0.5% 2,020 2,032 +0.6% Net fee income 189 206 222 204 206 219 +6.2% 395 425 +7.5% Gains (losses) on financial tra
Slide 98: Corporate Centre (EUR mn)
Corporate Centre (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income (133) (164) (162) (165) (172) (181) +5.0% (297) (353) +18.9% Net fee income (5) (8) (2) (12) (3) 2 — (13) (1) -92.8% Gains (losses) on financial transactions and ot
Slide 99: Retail Banking (EUR mn)
Retail Banking (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 7,286 7,573 7,770 7,966 8,094 8,620 +6.5% 14,859 16,714 +12.5% Net fee income 1,721 1,768 1,754 1,801 1,816 1,975 +8.8% 3,489 3,791 +8.7% Gains (losses) on financial
Slide 100: Retail Banking (Constant EUR mn)
Retail Banking (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 7,798 8,018 8,142 8,382 8,250 8,464 +2.6% 15,816 16,714 +5.7% Net fee income 1,835 1,861 1,820 1,892 1,850 1,941 +4.9% 3,696 3,791 +2.6% Gains (losses) on fi
Slide 101: Corporate & Investment Banking (EUR mn)
Corporate & Investment Banking (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 690 716 729 785 786 928 +18.1% 1,407 1,714 +21.8% Net fee income 462 427 433 422 521 506 -3.0% 889 1,027 +15.5% Gains (losses) on financial transactio
Slide 102: Corporate & Investment Banking (Constant EUR mn)
Corporate & Investment Banking (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 723 749 755 813 799 915 +14.5% 1,472 1,714 +16.4% Net fee income 486 448 446 435 529 498 -5.9% 934 1,027 +9.9% Gains (losses) on financial tr
Slide 103: Wealth Management & Insurance (EUR mn)
Wealth Management & Insurance (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 113 115 122 127 145 184 +26.4% 228 329 +44.3% Net fee income 289 306 315 336 321 334 +4.0% 596 655 +9.9% Gains (losses) on financial transactions and o
Slide 104: Wealth Management & Insurance (Constant EUR mn)
Wealth Management & Insurance (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income 117 120 125 130 147 182 +23.8% 237 329 +39.0% Net fee income 303 319 325 344 325 330 +1.6% 622 655 +5.2% Gains (losses) on financial transacti
Slide 105: PagoNxt (EUR mn)
PagoNxt (EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income (1) (1) 0 3 2 3 +85.6% (2) 5 — Net fee income 81 127 140 144 157 222 +41.2% 209 379 +82.0% Gains (losses) on financial transactions and other (14) (4) 4 14 3 11 +244.8% (17)
Slide 106: PagoNxt (Constant EUR mn)
PagoNxt (Constant EUR mn) Change Change Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'22 / Q1'22 H1'21 H1'22 H1'22 / H1'21 Net interest income (1) (1) (0) 3 2 3 +72.1% (2) 5 — Net fee income 91 141 152 159 164 215 +30.9% 232 379 +63.3% Gains (losses) on financial transactions and other (14) (3) 4 14 3 11 +
Slide 107: Appendix
Appendix Primary and Secondary segments 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 107
Slide 108: Glossary - Acronyms
Glossary - Acronyms ❑ ALCO: Assets and Liabilities Committee ❑ IFRS 9: International Financial Reporting ❑ RoRWA: Return on risk-weighted assets Standard 9, regarding financial instruments ❑ AT1: Additional Tier 1 ❑ RoTE: Return on tangible equity ❑ LLPs: Loan-loss provisions ❑ AuM: Assets under Man
Slide 109: 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 110: 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: