Santander Consumer USA Holdings Inc

Santander Consumer USA — Q1 2021 Earnings Presentation

24 slides from Santander Consumer USA's earnings presentation, Apr 28, 2021

  1. Slide 1: First Quarter 2021

    First Quarter 2021 April 28, 2021 Exhibit 99.2

  2. Slide 2: Important Information: Forward-Looking Statements

    IMPORTANT INFORMATION 2 Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions, or future even

  3. Slide 3: Q1 2021 Earnings Highlights

    Record Q1 results reflect strong business model, resilient US consumer and robust used vehicle prices 3 Q1 2021 Earnings Highlights Results Capital & Liquidity Credit Performance ► Net income of $742 million in Q1 2021, or $2.42 of diluted EPS ► Net interest margin of 10.7%, up 150bps YoY ► Total au

  4. Slide 4: Economic Indicators

    64.5 26.0 52.5 63.4 70.2 59.7 82.3 101.3 96.2 125.6 127.7 124.1 120.0 109.7 08 09 10 11 12 13 14 15 16 17 18 19 20 21 Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar 5.1% 8.7% 9.9% 9.0% 8.2% 7.5% 6.7% 5.4% 5.0% 4.4% 4.0% 3.8% 4.4% 6.0% 1.1% -3.5% 1.6% 1.9% 2.8% 1.1% 1.7% 2.9% 1.4% 1.4% 2.2%

  5. Slide 5: Auto Industry Overview

    136.0 140.5 139.9 141.1 141.9 149.3 161.2 161.1 179.2 118.4 122.0 121.8 117.9 121.6 126.8 139.5 135.1 151.4 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 1 U.S. Bureau of Economic Analysis, Light Weight Vehicle Sales: Autos and Light Trucks, monthly data as of March 31, 202

  6. Slide 6: Quarterly Originations

    Three Months Ended Originations ($ in Millions) Q1 2021 Q4 2020 Q1 2020 QoQ YoY Total Core Retail Auto 2,797$ 2,482$ 2,306$ 13% 21% Chrysler Capital Loans (<640) 1 1,317 1,141 1,190 15% 11% Chrysler Capital Loans (≥640) 1 2,343 1,863 1,432 26% 64% Total Chrysler Capital Retail 3,660 3,005 2,622 22%

  7. Slide 7: Monthly Originations

    $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec '20 v '21 YoY 9% 68% 126% '19 v '21 YoY 33% 104%228% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec '20 v '21 YoY -6% -6% 41% '19 v '21 YoY -12% -18% 24% $0 $100 $200 $300 $400 $500 $600 $700 Jan Feb Mar Apr

  8. Slide 8: Stellantis Relationship

    38.9% 37.1% 32.5% 28.0% 36.2% 1Q20 2Q20 3Q20 4Q20 1Q21 447 367 507 499 470 1Q20 2Q20 3Q20 4Q20 1Q21 8 Stellantis Relationship Stellantis Sales1 (units in ‘000s) Chrysler Capital Penetration Rate SC continues to partner with Stellantis to drive sales • Support both retail and lease incentives • Penet

  9. Slide 9: Serviced for Others (SFO) Platform

    85% 85% 83% 86% 74% 15% 15% 17% 14% 26% $10,331 $11,211 $11,511 $11,563 $14,216 1Q20 2Q20 3Q20 4Q20 1Q21 Related Party 3rd Party 9 Serviced for Others (SFO) Platform Serviced for others balance growth driven by prime originations through Stellantis ~$2.0B in SBNA originations ~$2.4B in off-balance s

  10. Slide 10: Diversified Funding and Liquidity

    1.5 2.0 2.4 1.3 $1.5 $5.7 Q4 2020 Q1 2021 Personal Loans Auto Loans SBNA Originations 10.8 10.5 2.5 2.5 0.5 0.5 $13.8 $13.5 Q4 2020 Q1 2021 Revolving Contingent Term 4.2 2.4 7.8 9.4 $12.0 $11.8 Q4 2020 Q1 2021 Revolving Unused Used $7.2 $5.7 Q4 2020 Q1 2021 Amortizing$18.9 $20.0 Q4 2020 Q1 2021 ► $3

  11. Slide 11: Q1 2021 Financial Results

    11 Q1 2021 Financial Results Three Months Ended (Unaudited, Dollars in Thousands, except per share) March 31, 2021 December 31, 2020 March 31, 2020 Interest on finance receivables and loans $1,304,651 $1,315,290 $1,273,819 Net leased vehicle income 317,089 293,143 195,067 Other finance and interest

  12. Slide 12: Quarterly Delinquency & Loss

    7.7% 6.0% 0.6% 3.5% 3.0% 1Q 2020 2Q 2020 Q3 2020 Q4 2020 1Q 2021 50.1% 45.7% 91.4% 64.2% 69.1% 15.5% 11.1% 6.8% 9.9% 9.7% 4.6% 2.4% 2.4% 3.1% 2.2% 8.3% 4.3% 5.0% 6.0% 4.4% SC Recovery Rates1 (% of Gross Loss) Net Charge-off Rates2 12 Quarterly Delinquency & Loss Delinquency Ratios: 30-59 Days Delinq

  13. Slide 13: Loss and Recovery Ratios (Annualized)

    -3.0 0.0 3.0 6.0 9.0 12.0 15.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 11.3 8.7 5.8 6.1 6.1 7.0 8.0 7.5 8.6 8.6 7.3 8.7 2020 9.3 7.3 6.6 8.7 6.4 3.1 1.2 -1.4 1.9 2.1 3.7 4.8 2021 4.2 3.5 1.2 -3.0% 0. % 3.0% 6.0% 9.0% 12.0% 15.0% 0.0 25.0 50.0 75.0 100.0 125.0 Jan Feb Mar Apr May Jun Jul

  14. Slide 14: Loss Detail: Net Charge-off Walk

    $593 $244 $97 ($279) ($167) Q1 2020 Balance & Other Gross Loss Performance Recoveries Q1 2021 14 Loss Detail Net Charge-off Walk, ($ in Millions) Net charge-offs for RICs decreased to $244M, down $349M YoY $97M increase in losses due to higher loan balances and other items $279M decrease due to lowe

  15. Slide 15: Allowance Walk Q4 2020 to Q1 2021

    $6,107 $6,001 $75 ($100) ($81) 4Q 2020 Credit & Portfolio Mix Economic Factors Balance 1Q 2021 594 462 48 296 243 314 400 293 (42) (107) $908 $862 $341 $254 $136 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Net Charge-offs Build Release 15 Allowance Walk Q4 2020 to Q1 2021 Allowance for Credit Loss Walk

  16. Slide 16: Allowance Ratios

    16 Allowance Ratios Dollars in Millions (Unaudited) (Unaudited) (Unaudited) Allowance Ratios March 31, 2021 December 31, 2020 March 31, 2020 TDR Unpaid principal balance $4,357 $3,945 $3,460 TDR Impairment $1,339 $1,314 $973 TDR Allowance ratio 30.7% 33.3% 28.1% Non-TDR Unpaid principal balance $27,

  17. Slide 17: Expense Management

    $283 $267 $264 $318 $294 1.9% 1.7% 1.7% 2.0% 1.8% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% $- $50 $100 $150 $200 $250 $300 $350 $400 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Operating Expense Expense Ratio 17 Expense Management Operating Expenses ($ in Millions) Operating expenses increased $11M YoY driv

  18. Slide 18: CET1 Ratio

    Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Tier 1 common capital $6,726 $6,574 $6,834 $7,341 $7,916 Risk weighted assets $48,830 $48,998 $49,883 $50,424 $47,996 CET1 13.8% 13.4% 13.7% 14.6% 16.5% 13.8% 13.4% 13.7% 14.6% 16.5% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% $60,000 $70,000 $80,00

  19. Slide 19: Appendix

    APPENDIX

  20. Slide 20: Diversified Underwriting Across Full Credit Spectrum

    55% 66% 58% 55% 55% 45% 34% 42% 45% 45% $4,927 $6,823 $6,525 $5,486 $6,456 1Q20 4Q19 3Q20 4Q20 1Q21 New Used 11% 7% 9% 10% 9% 12% 7% 8% 8% 8% 23% 15% 21% 22% 21% 15% 10% 14% 15% 15% 39% 61% 48% 45% 47% $4,927 $6,823 $6,525 $5,486 $6,456 1Q20 2Q20 3Q20 4Q20 1Q21 No FICOs <540 540-599 600-639 >=6402 2

  21. Slide 21: Held for Investment Credit Trends

    2 .5 % 1 2 .4 % 1 6 .7 % 3 1 .9 % 1 8 .9 % 1 7 .5 % 2 .6 % 1 0 .1 % 1 6 .7 % 3 2 .6 % 1 9 .2 % 1 8 .8 % 2 .5 % 1 0 .1 % 1 5 .3 % 3 0 .8 % 1 8 .3 % 2 3 .0 % 2 .6 % 9 .8 % 1 5 .3 % 3 1 .7 % 1 9 .0 % 2 1 .6 % 2 .8 % 9 .8 % 1 5 .6 % 3 3 .4 % 2 0 .1 % 1 8 .3 % Commercial No FICOs <540 540-599 600-639 >=6

  22. Slide 22: Excluding Personal Lending Detail - Quarterly

    22 Excluding Personal Lending Detail - Quarterly 1 The current period losses were primarily driven by 39 million of lower of cost or market adjustments related to the held for sale personal ..lending portfolio, comprised of 65 million in customer default activity, and a 26 million decrease in market

  23. Slide 23: Reconciliation of Non-GAAP Measures

    23 Reconciliation of Non-GAAP Measures a Under the banking agencies' risk-based capital guidelines, assets and credit equivalent amounts of derivatives and off-balance sheet exposures are assigned to broad risk categories. The aggregate dollar amount in each risk category is multiplied by the associ

  24. Slide 24: Thank You

    Our purpose is to help people and business prosper. Our culture is based on believing that everything we do should be: Thank You

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