Slide 1: Form 6-K Banco Santander, S.A.
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 January, 2012 Commission File Number: 001-12518 Banco Santander, S.A. (Exact name of registrant as specified in its ch
Slide 2: Table of Contents
Banco Santander, S.A. TABLE OF CONTENTS Item 1 Webcast presentation of 2011 results.
Slide 3: 31 January 2012
31 January 2012
Slide 4: Important information
Important throughout judgment materially securities customers, States forward-looking which result including, merits necessary recommendation constitutes 1933, prohibition performance, profit forecast. of as of they ornew amended, America the markets, and or information where from an obligors this a
Slide 5: Agenda
Agenda ?Group performance 2011 — Highlights — Results ?Business areas performance 2011 ?Conclusions ?Appendix
Slide 6: Highlights of 2011
2011ofHighlights recurring strengthening net tax results above 4doubled In market a year capital of Real mounting gains estate(1,513 coverage: complexity, mill.)50% Pre-provision priority Total shareholders was given profit:to€return balance 24,373(TSR): mill. sheetProfit Core strengthening, capital
Slide 7: Solid generation of recurring results
1 Solidgroup Billion small EUR generation of Billion banks of44.3 recurring generating 23.9 24.4 results pre-provision 42.1 5 In 23.0 2011 39.4 profit Santander 33.5 of 18.5 around maintained 19.9 EUR16.42518.2 an bn.excellent 15.0 2008track 2009 record 2010in2011 pre-provision 2008 2009profit, 2010
Slide 8: Group's quarterly recurring attributable profit
1 SolidQ2 Group’s Q1’11 generation quarterly Q3 Q4 attributable of recurringprofit results RECURRING 6 EUR 7,021attributable million of recurring profit EUR profit, Million absorbed EUR the Million market’s 8,181impact -14% on 7,021 trading 2,215gains 2,230and 2,101 the larger 2,108 provisions 1,803
Slide 9: Capital gains and extraordinary provisions
2 Capital established 872 registered transaction gains inbefore 2012 and -620 tax extraordinary Portfolio -1,670 Not writedowns required provisions Spain Extraordinary* 7 Furthermore, real estateExtraordinary 1,812 strongPortugal effort capital ingoodwill extraordinary gains600 provisions 1,513 prov
Slide 10: Attributable profit after extraordinary provisions
2 Capital gains* TOTAL gains Provisions and extraordinary Attributable provisions profit 8attributable After the effort profitmade (*) Not in provisions, including capital accounting gainsprofit from agreement was EUR 5,351 to sellmillion the bank EUR in Colombia, million +1,513 which8,534 are to7,0
Slide 11: Real estate coverage ratio
3 Balance ratio evolution sheetEUR strengthening: million 50% Real 8,552 estate Coverage coverage ratio: 9 The50% provisions 31% 31% established 4,278 10%atBalance the end of Coverage the year2008 put foreclosed 2009 2010real 2011estate coverage in Spain at 50% Foreclosed real estate Dec. 2011 Cover
Slide 12: Capital ratio evolution (EBA criteria)
3 Balance capital preferred evolution dividend sheet strengthening: (EBA (4.41%) criteria) andCapital other +0.28%EBA ratio 9.01% criteria 10 The +0.20% toGroup EBA +0.25% shows criteria +0.29% its shares financial +0.34% (*) (*) strength (*) 7.53% Including and +0.12% flexibility, Valores September
Slide 13: Core capital evolution
3 Balance 6.25% 5.91% sheet Dec’06 strengthening: Dec’07 Dec’08 CapitalDec’09 11 The Dec’10 effort made Dec’11 in the Note: quarter Dec’06 resulted and Dec’07 in a greater according acceleration to BIS of I Core capital under Basel II criteria Core capital evolution 10.02% 8.61% 8.80% 7.58%
Slide 14: Liquidity and funding position
3 Balance (Dec’11, M/LT term** 100 the US bn.issues to balance Note: provisional) Sovereign sheet Maturities Liquidity sheet strengthening: term Liquidity EUR balance wholesale 40Liquidity ratios sheet bn. EUR funding at in comfortable terms 12 32Good bn. Financial of–management liquidity Moreover,
Slide 15: Wholesale funding maturities and liquidity
3 Balance Portugal to liquidity developing SCF, (*) sheet Excluding wholesale UKstrengthening: and SOV securitisations markets Emerging Liquidity UK: self-financing markets 13 In 2012 Reduction few of commercial maturities of commercial and activity EUR gapand Billion SCF: good moving Group No need
Slide 16: Credit quality
3 Balance Continental D’11* M’11 On a like-for-like J’11 United sheet S’11 Europe Kingdom D’11 strengthening: basis, %D’10 %deducting and Spain M’11 USA Credit SCF J’11 Latin the5.49 quality acquired S’11 America 3.78 D’11 143.86 GE The %D’10 portfolio UK 3.89 Group’s M’11 Sovereign 5.15in J’11 3.55
Slide 17: Credit quality ratios compared with sector
3 Balance 5.08 Brazil Sep’11 3.37 Private Dec’11 5.49 sheetBanks 5.15 Dec’07 strengthening: 1.10 % Dec’08 %4.24 4.6 1.41 5.9 Credit Dec’09 Santander 1.41 quality Dec’10 1.44 Financial 1.42 15Jun’11 Our 3.41ratios Sep’11 System 0.92 still 1.03 Latest 3.6 compare 0.66 5.4available 1.95 4.5very 4.8 0.6
Slide 18: Total shareholder return
4 Total +13 p.p.shareholder 1 year 3 years return 5 years (TSR)1016 years Total(1)return Drawnabove up based market oninBloomberg short, medium data as andoflong 31-12-2011 term TSR: cumulative difference1 with Euro Stoxx Banks Index Percentage points +54 p.p. +32 p.p. +29 p.p.
Slide 19: Agenda
Agenda ?Group performance 2011 — Highlights — Results ?Business areas performance 2011 ?Conclusions ?Appendix
Slide 20: Grupo Santander results
Grupobefore interest income Profit -1,670 mill. Santander —income 24,373 — Attributable tax+519 +10,817 Results fees+2.2 41,293 -1,235 18 profit +1.8 Solid +2,334 Loan-loss -10.2 5,351 results -10.6 +6.0 -2,830 in provisions +4.7 Tax the -34.6 and upper Trading -35.1 minority -10,562 part gains (1)o
Slide 21: Revenues 2011
1 Revenues 2011/2010 2010 2011 Mature 33,489 19 Solid 3,663 markets basic Other revenues -1,102 3,240 (1)asLatam’s Basic the driver revenues: dynamism of profits Net+2,160 interest Basicrevenues2 revenues1 income +39,336 Group’s fees + 41,685 insurance GrossSCF income activity (organic 2011/2010: (2
Slide 22: Expenses
2 Expenses capture retail units Latam: -61 20 Different in +938 Spain 14,949 and management Portugal growth inby emerging units andmarkets businesses BZ WBK: Expenses +324Group’s Developexpenses franchises 2011/2010: and businesses EUR Million in mature + EUR ones1,694 +493mill.; 2008 +9% 2009+33% 2
Slide 23: Loan-loss provisions
3 Loan-loss 2010 (1) Including 2011 9,484 provisions country-risk Use of21generic Provisions provisions still high 6,601 at the EUR current Million Specific 2008 2009 provisions 2010 2011 Net loan-loss -569 2008provisions1 2009 2010EUR 2011Million -1,159 EUR -2,159Million -2,086 11,760 … with12,342
Slide 24: Comparison with peers
Comparison provisions/loans 1.12 income C13 each JP Morgan, 0.22 0.00 entity. / Assets -0.07 C4“Peer Mitsubishi, vs. 53.2 C14 C9 competitors* Gross their C4 59.4 64.7 1.10 size, income Nordea, Peers C14 -0.31 characteristics 22 0.19 avg. Data Royal C5 Better -0.29 0.79 54.1 2011 Bank performance -0.
Slide 25: Agenda
Agenda ¦Group performance 2011 — Highlights — Results ¦Business areas performance 2011 ¦Conclusions ¦Appendix
Slide 26: Profit distribution by geographic area
Profitmillion US$ LatAm 2010 2011 distribution Ex-Brazil 2010 -15%2011 UK by 3,355 geographic 12% 2010 -7%10% 2011 2,849 Constant area (1)Poland Over 24 Results EUR operating 3,915 Million are (BZareas underpinned WBK) Constant 2011 3,629 attributable US$ bySCF the million Group’s Brazil profit Mexi
Slide 27: Continental Europe
Continental Basic Q4 Portugal Proforma Q1’11 revenues 174 growth Q2Europe -62% Q3 EUR in Q4Poland 2011 local 2,849 201025 criteria (BZ 2011 mill. Networks WBK)* Expenses EUR year 2011/2010 Million and 232+12% wholesale +22% +8% Unit’s Attributable Var. business profit 2011 /EUR impacted 2010 profit
Slide 28: Santander Branch Network
Santander Activity -8.7 operating 1.15%2010 1.36% Basic income 2011 Branch after revenues 2010 +6% Network LLPs 2011 3.65% Loans 916 2009 2011 Q4’10 EUR Deposits* 2010 26 Million Improved Q2’11 2011Loans Q1’10 Q4’11 Netnet op. / deposits operating 2010 Q2 2,227 Q32011 Q4 2,353 ratio* income Q1’11 Q1
Slide 29: Banesto
Banesto Deposits* Q1’10 3.21% 2010 2011 Q2 Net 2011 Loans Q3 Q1’10 op.27 Q4 1,376 Banesto’s /Q1’11 Q2 deposits 2.92% Q3Q2Q4ratio* trends -24% Q3 Q1’11 Q4EUR are income 2010 Q2similar Million Q32011 Return Q4toNet 2010 +1% those 2.44% interest 2011 -8% of the 384 Var. (*) income Santander 1,112 Exclu
Slide 30: Spain real estate lending
Spain1.% Billion construc. Dec’11 (1) Customer 108 TOTAL Including Spainlending 245 105 Santander 236 105 and Public 4.2 NPLs Branch and sector real 28 Network, Of10 estate note 2253.4 in 12Banesto, lending 3.5 12 Household Other was GBMportfolio theSpain, mortgages drop3.1 in Santander 2.5 loans 64
Slide 31: NPLs evolution and coverage
Loans Dec’11 NPLs evolution withSubstandard real Coverage estate purpose. Dec’11 —€14,246 Coverage Evolution mill.; EUR -38% and coverage million EUR million EUR 29 Active million 37,688management 3,916 31,12716% 6,722 12% focusing 33% -758 27,334 on -849 balances 23,442 613 -978 reduction 29% -1,22
Slide 32: Real estate foreclosed and coverage
Real estateevolution Foreclosed Coverage coverage. real estate. EUR Evolution Coverage millionand EUR 50%coverage million 31% 31% 30 EURGood +453 million +373 quarterly Coverage: +225performance 10%8,552 -7 Q150% Q2 andQ3 8,552 bigQ4 effort 6,521 2008in 7,509 2009 coverage, 2010 4,765 anticipating 2
Slide 33: Portugal
Portugal reduction operating GAP -2.02011 Dec’10 income 31 Managing-out” Dec’11 EUR 237 after Million %LLPs var.Net Dec’11/Dec’10 a-3.4 “bail op.2010 -33% scenario 2011 income Q1’10 Q1’10 and 650 Activity Q2 Q2192 Q3 Q3188 Basic Q4 Q4-32% Q1’11 Q1’11 revenues EUR Q2 Q2Q3Q3 EUR billion Q4 Q4Million 2
Slide 34: Portugal sector results
Portugal. 838 C5 +0.0% mill. in Troika C6the-43 sector) inspection C6 +0.0% RWA’s results Note: review 32 Competitors: Outstanding … Deficit in BES, results million BPI,ofTier Millenium, Santander I Improvement Totta Caixaafter Geral / Loss thede“Special San. Depositos, TottaProgram 0 B. San. Funcha
Slide 35: Santander Consumer Finance
Santander Million Deposits Germany 1,972 impactUK from +9% 2010 30 4Consumer +9% consolidated +39% +15% 2011 income Net Var. Q1’10 Finance op. Dec’11 1,344 byQ2 3,604 the 2011 Q3 after Dec’10 equity EUR Q4 33LLPs Q1’11 Sharp Million accounted / 5,290 Poland profit Q2income Net Q3method 3increase, in
Slide 36: Poland (BZ WBK)
Poland+14% Expenses profit (BZ +14% WBK) -13% 8,845 +22% 2011 +8% 34 10,505 Data +9%288 in Total local Total 7,726 criteria. 1027709,227 Constant 83489 +17% 237EUR 6,025 Companies million 429 468 Loans +26% Companies and 4,423 deposits 3,516 5,148Individuals growth Individuals since 5,711 2,578 its
Slide 37: United Kingdom
35 United Kingdom
Slide 38: United Kingdom
United 2010 operating 666 insurance 586 inKingdom £Net income (%) (PPI). op. Mortgages Attributable (2) 2011 / provisions Loans 36 Companies’ Results to profit SMEs: Net affected operating -41% +25% loans income by(3) Deposits3 income sluggish Excluding 2,404 -15% 166 activity, 2,202 GBM Net 166afte
Slide 39: Brazil
37 Brazil
Slide 40: Brazil
Brazil Net 18,893 constant +12% Q2 Q3 int.3,522 2011 Q4 4,586 inc. US$ Q1’11 38 /provisions 3,497 4,662 (%) Continue Q2 Net 3,295 Provisions Q3 operating (o/ATAs) growth Q4 3,375 2010 2.67% 3,458 income ofConstant 2011 basic 3,058 2.79% (1) /revenues provisions US$ Local 3,031 2 Loans million curren
Slide 41: LatAm Ex-Brazil
39 LatAm Ex-Brazil
Slide 42: Latin America ex-Brazil
Latin America revenues 1,938 country Argentina currency 2,030 (EUR (2) Volumes2 3992,013 Excluding 2,054 +8% Ex-Brazil +13% Net Colombia million) New int. 2011 2.99 inc. York Var. 2.96 81 40/provisions +46% Profit 2011 branch Provisions /increase Net 2010 (3)(o/ATAs) operating Excluding 0.91% in spu
Slide 43: Mexico
Mexico (o/ATAs) Loans provisions Net (2) Excluding operating 2 2011 Deposits Constant Basic 41 income perimeter: Profit revenues 2010 US$0% fuelled 2011 million +22% Net +9%Attributable op. byNet +14% strong 1,459 operating Var. income basic profit: Dec’11 income revenues 1,299 US$/ Dec’10 1,301 0%
Slide 44: Chile
Chileoperating /provisions 0.98% provisions Net 2011 LoansBasic 42 (o/ATAs) Deposits income Activity revenues Constant -3% 2010 continued +3% Net 2011 US$ op. Net to Attributable income million operating grow strongly, 1,356 Var. income profit: Dec’11 1,229 focused US$ Net Net / Dec’10 op. 849 op. o
Slide 45: Sovereign
43 Sovereign
Slide 46: Sovereign
Sovereign Activity Gross income profit +30% income +9% and 2011 income return1 Net +9% 44operating Larger 2.33 872 (EUR2.50 after revenues, 526 income -1% LLPs million) -4% +9% Q1’10 increased -8% Y-o-Y NetQ2 Provisions op. commercial Q3 change. 1,685 Q4 Q1’11 US$ -12% activity Mill. Net Q2 0.97% in
Slide 47: Corporate Activities
45 Corporate Activities
Slide 48: Corporate Activities
Corporate Net interestActivities income -344 46 Larger Trading trading gainsgains +746(fx Other hedging) resultsoffset and taxes the negative -274 Impact impact on from profit: funding +128 Net costs capital and lower gainstax andreturns extraord. Attributable provisionsprofit -1,670(Change Total im
Slide 49: Agenda
47 Agenda ?Group performance 2011 — Highlights — Results ?Business areas performance 2011 ?Conclusions ?Appendix
Slide 50: 2012 Outlook
2012 Outlook foreclosed real48 Core Santander capital profit is facing estate the in year Spain from EBA a solid starting point High capacity Quality High capital to generate balance sheet levels results 50% EUR 24 bn. coverage of 9% Pre-provision
Slide 51: 2012 outlook by business area
Santander spreads products taking advantage ??Balance and 2012 customer outlook ofsheet good profiles 49 strengthening macroeconomic In 2012 business Santander UK: SCF: trends continue consolidate willmarkets maintain to develop Poland: reached a differentiated franchise full position integration (m
Slide 52: Agenda
50 Agenda ?Group performance 2011 — Highlights — Results ?Business areas performance 2011 ?Conclusions ?Appendix
Slide 53: Group's balance sheet
51 Group’s balance sheet
Slide 54: Main trends of the Group's balance sheet
Main billion Other subordinated 25 bn.,trends 37 1,252 tangible AFSof 2Issues Portfolio Cash, the andGroup’s and intangible Central 76 Trading 452the Banks Retail assets liabilities portfolio: and balance 17 bn., credit side): 4% other sheet, 1,252 214 9%capital liabilities appropriate of Credit Tra
Slide 55: Secondary segments results
53 Secondary segments results
Slide 56: Retail Banking
Retail Banking Deposits2 Attributable 22,817 provisions income +7% Attributable profit: +2% 54 +9% Single-digit EUR Expenses 39,206 profit 6,893 36,549 -9% +10% growth million Q1’10 +2% Prov. in Var. net Q2 +5% 5,640 2011 operating Q3666 Q4 /5,621 2010 9,357 Q1’11 income 5,685 in9,556 euros Q25,980
Slide 57: Global Wholesale Banking
GlobalMillion EUR Customers Hedging 3,032 Transaction -28% Wholesale of1,199 interest 1,023 Banking -17%1,127 922 Banking -9% / 1,387 and 848 Customers Total Credit 865 -7% (GBM) Total 943 1,293 4,414 55 5,150 -21% Net Customer 4,056 782 1,364 operating 2010 -16% 1,303 revenues 2011 income 1,082 1,2
Slide 58: Asset Management and Insurance
Asset EUR mill.) Q2 Q3Million 2010 Management Q4 *2011 2010 +1%Net 2011 +9% and operating 2010 Insurance -23%2011 4,334 income 56 2010 3,966 High EUR 2011 1,081 contribution Million (*)1,088 Impact +2%276 tofrom Asset the 272 Group sale 291 Management of288 via Latam revenues 302 insurance 275 Insur
Slide 59: Summary Group coverage ratios
57 Summary Group coverage ratios
Slide 60: Summary Group coverage ratios
Summary S’11 D’10 (**) On D’11 M’11 a like-for-like Group D’10 J’11 M’11 S’11 coverage D’11 J’11 basis, ratios S’11 D’10 deducting D’11* 58 M’11 Group’s J’11 the United acquired S’11 Total Kingdom D’11 Continental GED’10 portfolio and M’11 USA Europe inLatin J’11 Mexico. %S’11 America % Spain D’11 I
Slide 61: Main units spreads and NPL ratios
59 Main units spreads and NPL ratios
Slide 62: Continental Europe spreads
Continental 2.01 Q2 1.82 Q32.02 1.88 Q41.96 2.08 Loans Europe. 2.12 1.75 Deposits 2.16 1.68 Main1.45 1.83 units Total 1.83 0.09 spreads Loans 1.65 Deposits 0.10 1.67 0.21 60 (%) 1.41 0.23 SAN Total 1.47Branch 0.12 Santander 0.50 0.56 -0.31 -0.47 Network 0.65 Consumer -0.78 0.53 Banesto Q1’10 0.18 Le
Slide 63: Continental Europe NPL and coverage ratios
Continental 5.08% Santander 3.78% ratio was 5.63% 4.06% 8.47% Consumer(2) Europe. 5.99% 4.63% and NPLs coverage 3.13% 4.42% Portugal and 3.49% 4.29% ratio coverage 122% 3.83% 3.77% 40%128% ratios asMar’10 4.11% of 122% Dec’11 614.31% Banco Jun 128% (2) Sep 4.54% Santander(1) InDec 132% December, 4.6
Slide 64: Spain real estate loans and foreclosed assets
Loans Dec’11 391 Non ??Developed mortgage with Dec’10 realguarantee Var. estate land amount purpose 3,118 4,737 amount 3,678 and 6,124 foreclosed -560 ??Finished -1,387 ??Developed Sub real buildings Total estate land 8,552 in11,805 2,661 Spain 32%39% 12,709 62 5,792 LOANS 1,615 Total -904??Building
Slide 65: United Kingdom spreads and NPL ratios
United 1.97 Loans1.96 Deposits Kingdom. 1.99 -0.06 Total Spreads -0.14 NPLsand -0.17 Coverage NPL -0.25 ratios 1.88%63 1.85% (%) Spreads 1.77%Retail 1.76%Banking 1.75% 1.82% NPL and 1.88% coverage 1.86%2.28 -0.30 2.34 -0.38 2.35-0.46 2.42-0.50 2.49 2.05 Q1’102.13 Q22.20 Q3 Q4 46% Q1’11 46% Q2 48%Q34
Slide 66: Latin America spreads
Spreads 15.29 Q4 2.52 Q1’10 2.25 14.73 main 2.30 Q214.72 countries Q3 2.27 Q4 15.05 2.17 Q1’11 Latin 14.44 Q1’10 Q2 America 10.03 Q2 Q3 Q3 Q49.50 64 Q4 Loans (%) 14.29 Q1’11 Deposits Retail 14.23 Q2Banking Q3 9.20 Total Q48.93 Loans Loans Brazil 8.58 Deposits Deposits Retail 8.40 8.27 Banking Total
Slide 67: Latin America NPL and coverage ratios
Latin America. 5.38% Chile deducting 99% 4.91% the 97%GE 4.85% NPLs 94% acquired 2.20% 89% and coverage 89% portfolio. 1.86% 89%1.77% ratios 88% Including 65 73% 1.84% Brazil it, 3.58% 1.58% NPL Mexico1 3.74% ratio: 1.63% June 104% 3.80% 1.45% 2.45%; 268% 3.65% 1.48% 257% September: 3.63% Mar’10 100
Slide 68: Sovereign spreads and NPL ratios
Sovereign. 2.29 Loans1.96 Deposits 2.04 Spreads 2.08 Totaland 1.94 NPLs NPL 5.14% Coverage and5.11% coverage 0.94ratios 0.99 4.80% 66 (%)4.61% Spreads 0.78 Retail 0.66Banking 4.15% 3.76% NPLs 0.62 and coverage 0.53 3.22% 2.88 0.40 2.95 0.46 2.94 2.85% 2.90 2.66 Q1’102.62 Q22.75 Q3 Q4 2.61Q1’11 96% Q
Slide 69: Santander
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Slide 70: 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: January 31, 2012 By: /s/ José Antonio Álvarez Name: José Antonio Álvarez Tit