Banco Santander, S.a. · BME:SAN

Banco Santander — Q1 2023 Earnings Presentation

72 slides from Banco Santander's earnings presentation, Apr 25, 2023

  1. Slide 1: Earnings presentation: Supplementary information Q1'23

    25 April 2023 Earnings presentation: Supplementary information — Q1’23 Q1’23 Earnings presentation v080323pm

  2. Slide 2: Important information

    Important information Non-IFRS and alternative performance measures This presentation contains financial information prepared according to International Financial Reporting Standards (IFRS) and taken from our consolidated financial statements, as well as alternative performance measures (APMs) as de

  3. Slide 3: Important information

    Important information The following important factors (and others described elsewhere in this presentation and other risk factors, uncertainties or contingencies detailed in our most recent Form 20-F and subsequent 6-Ks filed with, or furnished to, the SEC), as well as other unknown or unpredictable

  4. Slide 4: Supplementary information

    Supplementary information Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Quarterly income statements Glossary 4

  5. Slide 5: 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 Liquidity Coverage Net Stable Funding Ratio (LCR) Ratio (NSFR) € bn, Mar-23 1,448 1,448 1 Mar-23 Dec-22 Dec-22 Loans and Spain2

  6. Slide 6: Diversified bond portfolio represents just 6% of total assets

    Diversified bond portfolio represents just 6% of total assets Bond portfolio %, Mar-23 €111bn Other South America SCF 5% 7% Chile Liquidity 11% portfolio €30bn Spain 20% Brazil €111bn 11% o/w HTC €60bn UK 4% ALCO IRRBB €81bn Mexico 16% Poland 10% Portugal USA 2% 14% 6

  7. Slide 7: Conservative and decentralized liquidity and funding model

    Conservative and decentralized liquidity and funding model €17bn1 issued in public markets in Q1’23 Very manageable maturity profile € bn, Mar-23, Average exchange rates € bn, Mar-23 15.9 Covered 7.7 9.9 9.1 7.9 4.6 0.4 Bonds 2.2 6.3 0.3 0.1 0.5 0.6 1.7 18.6 14.5 15.2 Senior 5.9 9.1 3.0 6.5 2.5 0.4

  8. Slide 8: 2023 funding plan and 2023 YTD issuances

    2023 funding plan and 2023 YTD issuances Execution of 2023 funding plan € bn, Mar-23 Hybrids SNP + Senior Covered Bonds TOTAL Plan Issued Plan Issued Plan Issued Plan Issued Banco Santander, S.A 0.5 - 1.5 - 9-10 6.1 6-7 4.0 15.5 - 18.5 10.1 UK - - 3-4 1.2 5-6 1.7 8-10 2.9 SCF - - 2-4 0.5 - - 2-4 0.5

  9. Slide 9: Santander's 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-23 15.89% Mar-23 15.81% T2 >15% 13.26% +263bps 2.19% AT1 13.26% +254bps 2.15% 2.00% T2 1.44% T2 +284bps 1.44% 2.40%

  10. Slide 10: TLAC/MREL for the Resolution Group headed by Banco Santander, S.A.

    TLAC/MREL for the Resolution Group headed by Banco Santander, S.A. TLAC Mar-23(e) MREL Mar-23(e) % % and € bn 39.4% 150.6 6.7% 27.4 Senior 23.5% 3.7% 27.5 SNP 1.8% 3.7% 3.3 Sub debt 9.7 T2 Req. 17.4% 8.0 AT1 32.7% 29.0% 4.2% Req. 21.7% 8.6% 18.0% 1.8% 74.6 CET1 13.2% 6.8% % RWAs % LE % RWAs % LE MRE

  11. Slide 11: Supplementary information

    Supplementary information Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Quarterly income statements Glossary 11

  12. Slide 12: Yield on loans (%)

    Yield on loans (%) Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Europe 2.09 2.23 2.46 2.87 3.45 Spain 1.72 1.77 1.96 2.46 3.31 United Kingdom 2.25 2.33 2.46 2.71 2.94 Portugal 1.46 1.48 1.69 2.37 3.33 Poland 4.64 6.22 7.28 7.64 8.26 North America 7.32 7.62 8.13 8.75 9.46 US 6.25 6.39 6.89 7.35 7.88 Mexico 10.42 11

  13. Slide 13: Cost of deposits (%)

    Cost of deposits (%) Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Europe 0.08 0.14 0.25 0.53 0.81 Spain 0.05 0.05 0.09 0.22 0.53 United Kingdom 0.12 0.21 0.35 0.79 1.10 Portugal 0.01 0.02 0.02 0.04 0.14 Poland 0.16 0.49 1.00 1.58 1.75 North America 0.73 0.88 1.22 1.87 2.68 US 0.09 0.22 0.50 1.07 1.67 Mexico 2.39 2

  14. Slide 14: Supplementary information

    Supplementary information Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Quarterly income statements Glossary 14

  15. Slide 15: Stage coverage

    Stage coverage Exposure ¹ Coverage Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Stage 1 967 998 1,030 1,004 1,005 0.5% 0.5% 0.5% 0.4% 0.4% Stage 2 68 66 70 69 72 8.0% 8.5% 7.7% 7.7% 7.4% Stage 3 36 34 36 35 34 41.0% 40.1% 41.0% 40.8% 40.1% 1) Exposure subject to impairment i

  16. Slide 16: NPL ratio (%)

    NPL ratio (%) Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Europe 3.01 2.63 2.58 2.37 2.35 Spain 4.47 3.83 3.69 3.27 3.19 United Kingdom 1.42 1.17 1.16 1.21 1.27 Portugal 3.42 3.33 3.03 2.99 3.05 Poland 3.50 3.45 3.63 3.80 3.66 North America 2.83 2.71 2.79 3.03 2.95 US 2.75 2.64 2.92 3.25 3.13 Mexico 3.09 2.9

  17. Slide 17: NPL coverage ratio (%)

    NPL coverage ratio (%) Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Europe 49.1 50.2 49.7 51.8 51.2 Spain 50.4 49.4 49.3 51.0 50.2 United Kingdom 26.1 32.9 32.4 33.8 33.1 Portugal 72.8 74.3 76.3 79.3 80.3 Poland 78.5 76.0 74.8 74.0 75.2 North America 110.5 111.4 102.7 93.3 94.9 US 122.2 121.0 102.8 90.3 91.5

  18. Slide 18: Credit impaired loans and loan-loss allowances. Breakdown by operating areas

    Credit impaired loans and loan-loss allowances. Breakdown by operating areas. March 2023 Credit impaired loans Loan-loss allowances Digital Consumer Digital Consumer Bank, 7.8% Bank, 10.4% Other South America, 0.6% Argentina, 0.4% Other South America, 0.9% Spain, 19.6% Chile, 7.2% Spain, 27.2% Argen

  19. Slide 19: Cost of risk (%)

    Cost of risk (%) Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Europe 0.37 0.37 0.36 0.39 0.42 Spain 0.88 0.79 0.71 0.61 0.62 United Kingdom (0.08) (0.02) 0.02 0.12 0.12 Portugal 0.03 (0.05) (0.12) 0.04 0.06 Poland 0.65 0.95 1.07 1.43 1.71 North America 0.93 1.09 1.12 1.49 1.62 US 0.49 0.78 0.87 1.35 1.52 Mexi

  20. Slide 20: Supplementary information

    Supplementary information Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Quarterly income statements Glossary 20

  21. Slide 21: GRUPO SANTANDER (EUR mn)

    GRUPO SANTANDER (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 8,855 9,554 10,051 10,159 10,185 +0.3% 8,855 10,185 +15.0% Net fee income 2,812 3,040 3,015 2,923 3,043 +4.1% 2,812 3,043 +8.2% Gains (losses)

  22. Slide 22: GRUPO SANTANDER (Constant EUR mn)

    GRUPO SANTANDER (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 8,938 9,231 9,638 10,191 10,185 -0.1% 8,938 10,185 +13.9% Net fee income 2,840 2,947 2,914 2,959 3,043 +2.8% 2,840 3,043 +7.2% Gains (

  23. Slide 23: Europe (EUR mn)

    Europe (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 2,839 2,981 3,179 3,567 3,597 +0.8% 2,839 3,597 +26.7% Net fee income 1,154 1,162 1,125 1,051 1,168 +11.1% 1,154 1,168 +1.2% Gains (losses) on financial

  24. Slide 24: Europe (Constant EUR mn)

    Europe (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 2,770 2,925 3,139 3,545 3,597 +1.5% 2,770 3,597 +29.8% Net fee income 1,148 1,156 1,121 1,049 1,168 +11.4% 1,148 1,168 +1.8% Gains (losses) on

  25. Slide 25: Spain (EUR mn)

    Spain (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 998 1,017 1,119 1,405 1,460 +4.0% 998 1,460 +46.4% Net fee income 745 730 697 646 752 +16.4% 745 752 +0.8% Gains (losses) on financial transactions and o

  26. Slide 26: United Kingdom (EUR mn)

    United Kingdom (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 1,192 1,227 1,277 1,297 1,283 -1.1% 1,192 1,283 +7.6% Net fee income 92 110 93 95 83 -12.8% 92 83 -10.4% Gains (losses) on financial transaction

  27. Slide 27: United Kingdom (Constant EUR mn)

    United Kingdom (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 1,129 1,178 1,237 1,276 1,283 +0.5% 1,129 1,283 +13.6% Net fee income 87 105 90 93 83 -11.5% 87 83 -5.4% Gains (losses) on financial tr

  28. Slide 28: United Kingdom (GBP mn)

    United Kingdom (GBP mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 997 1,040 1,092 1,127 1,133 +0.5% 997 1,133 +13.6% Net fee income 77 93 80 82 73 -11.5% 77 73 -5.4% Gains (losses) on financial transactions and

  29. Slide 29: Portugal (EUR mn)

    Portugal (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 170 171 175 231 261 +13.0% 170 261 +53.6% Net fee income 122 123 121 118 124 +5.0% 122 124 +1.6% Gains (losses) on financial transactions and other 41

  30. Slide 30: Poland (EUR mn)

    Poland (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 407 486 530 552 586 +6.2% 407 586 +43.8% Net fee income 138 130 135 125 145 +15.8% 138 145 +5.0% Gains (losses) on financial transactions and other (35)

  31. Slide 31: Poland (Constant EUR mn)

    Poland (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 400 480 533 553 586 +6.0% 400 586 +46.6% Net fee income 135 128 136 126 145 +15.4% 135 145 +7.1% Gains (losses) on financial transactions and o

  32. Slide 32: Poland (PLN mn)

    Poland (PLN mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 1,881 2,261 2,510 2,602 2,759 +6.0% 1,881 2,759 +46.6% Net fee income 637 605 641 591 682 +15.4% 637 682 +7.1% Gains (losses) on financial transactions

  33. Slide 33: Other Europe (EUR mn)

    Other Europe (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 72 80 77 83 7 -91.8% 72 7 -90.6% Net fee income 56 69 79 68 65 -3.6% 56 65 +15.9% Gains (losses) on financial transactions and other 21 9 7 (13) 5

  34. Slide 34: Other Europe (Constant EUR mn)

    Other Europe (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 74 80 74 80 7 -91.6% 74 7 -90.8% Net fee income 58 69 77 66 65 -1.3% 58 65 +12.9% Gains (losses) on financial transactions and other 21 9

  35. Slide 35: North America (EUR mn)

    North America (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 2,131 2,352 2,619 2,603 2,448 -5.9% 2,131 2,448 +14.9% Net fee income 443 494 513 508 521 +2.6% 443 521 +17.7% Gains (losses) on financial transa

  36. Slide 36: North America (Constant EUR mn)

    North America (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 2,307 2,399 2,539 2,534 2,448 -3.4% 2,307 2,448 +6.1% Net fee income 488 512 505 500 521 +4.2% 488 521 +6.8% Gains (losses) on financial

  37. Slide 37: United States (EUR mn)

    United States (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 1,378 1,499 1,669 1,594 1,465 -8.1% 1,378 1,465 +6.3% Net fee income 197 198 194 183 190 +3.4% 197 190 -3.6% Gains (losses) on financial transact

  38. Slide 38: United States (Constant EUR mn)

    United States (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 1,441 1,488 1,569 1,517 1,465 -3.4% 1,441 1,465 +1.7% Net fee income 206 196 180 174 190 +9.1% 206 190 -7.8% Gains (losses) on financial

  39. Slide 39: United States (USD mn)

    United States (USD mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 1,546 1,597 1,684 1,627 1,572 -3.4% 1,546 1,572 +1.7% Net fee income 221 210 193 186 203 +9.1% 221 203 -7.8% Gains (losses) on financial transact

  40. Slide 40: Mexico (EUR mn)

    Mexico (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 753 853 950 1,009 983 -2.6% 753 983 +30.5% Net fee income 245 283 303 309 320 +3.6% 245 320 +30.3% Gains (losses) on financial transactions and other (1

  41. Slide 41: Mexico (Constant EUR mn)

    Mexico (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 865 911 970 1,017 983 -3.4% 865 983 +13.6% Net fee income 282 303 308 310 320 +3.1% 282 320 +13.4% Gains (losses) on financial transactions and

  42. Slide 42: Mexico (MXN mn)

    Mexico (MXN mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 17,319 18,241 19,417 20,360 19,669 -3.4% 17,319 19,669 +13.6% Net fee income 5,641 6,061 6,170 6,210 6,400 +3.1% 5,641 6,400 +13.4% Gains (losses) on fi

  43. Slide 43: Other North America (EUR mn)

    Other North America (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 0 (0) (0) 0 0 +87.7% 0 0 +23.8% Net fee income 1 13 17 16 12 -25.1% 1 12 — Gains (losses) on financial transactions and other 1 4 6 11 1 -9

  44. Slide 44: Other North America (Constant EUR mn)

    Other North America (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 0 (0) (0) 0 0 +87.7% 0 0 +23.8% Net fee income 1 13 17 16 12 -25.1% 1 12 — Gains (losses) on financial transactions and other 1 4

  45. Slide 45: South America (EUR mn)

    South America (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 3,037 3,390 3,411 3,141 3,163 +0.7% 3,037 3,163 +4.1% Net fee income 1,013 1,162 1,174 1,165 1,166 +0.0% 1,013 1,166 +15.1% Gains (losses) on fin

  46. Slide 46: South America (Constant EUR mn)

    South America (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 3,035 3,093 3,133 3,273 3,163 -3.4% 3,035 3,163 +4.2% Net fee income 1,002 1,060 1,086 1,212 1,166 -3.8% 1,002 1,166 +16.4% Gains (losse

  47. Slide 47: Brazil (EUR mn)

    Brazil (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 2,143 2,279 2,251 2,229 2,105 -5.5% 2,143 2,105 -1.7% Net fee income 743 857 812 884 817 -7.6% 743 817 +10.0% Gains (losses) on financial transactions a

  48. Slide 48: Brazil (Constant EUR mn)

    Brazil (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 2,248 2,138 2,128 2,145 2,105 -1.9% 2,248 2,105 -6.4% Net fee income 779 808 767 852 817 -4.1% 779 817 +4.8% Gains (losses) on financial transa

  49. Slide 49: Brazil (BRL mn)

    Brazil (BRL mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 12,527 11,912 11,859 11,953 11,731 -1.9% 12,527 11,731 -6.4% Net fee income 4,342 4,501 4,275 4,746 4,550 -4.1% 4,342 4,550 +4.8% Gains (losses) on fina

  50. Slide 50: Chile (EUR mn)

    Chile (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 483 554 402 332 371 +11.7% 483 371 -23.2% Net fee income 112 110 120 127 153 +20.7% 112 153 +36.8% Gains (losses) on financial transactions and other 55

  51. Slide 51: Chile (Constant EUR mn)

    Chile (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 503 573 433 358 371 +3.7% 503 371 -26.2% Net fee income 117 113 128 136 153 +12.9% 117 153 +31.4% Gains (losses) on financial transactions and o

  52. Slide 52: Chile (CLP mn)

    Chile (CLP mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 437,644 498,964 376,457 311,342 322,790 +3.7% 437,644 322,790 -26.2% Net fee income 101,410 98,614 111,094 117,979 133,249 +12.9% 101,410 133,249 +31.4%

  53. Slide 53: Argentina (EUR mn)

    Argentina (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 300 432 616 431 532 +23.5% 300 532 +77.4% Net fee income 121 143 182 97 137 +41.7% 121 137 +13.6% Gains (losses) on financial transactions and other

  54. Slide 54: Argentina (Constant EUR mn)

    Argentina (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 163 259 436 623 532 -14.7% 163 532 +226.5% Net fee income 66 86 132 168 137 -18.4% 66 137 +109.2% Gains (losses) on financial transactions a

  55. Slide 55: Argentina (ARS mn)

    Argentina (ARS mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 36,978 58,765 99,007 141,515 120,749 -14.7% 36,978 120,749 +226.5% Net fee income 14,875 19,625 29,856 38,139 31,111 -18.4% 14,875 31,111 +109.2% Gai

  56. Slide 56: Other South America (EUR mn)

    Other South America (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 111 125 142 150 154 +3.3% 111 154 +38.9% Net fee income 38 52 62 58 59 +2.4% 38 59 +56.7% Gains (losses) on financial transactions and othe

  57. Slide 57: Other South America (Constant EUR mn)

    Other South America (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 120 123 136 146 154 +5.7% 120 154 +28.2% Net fee income 40 52 59 57 59 +3.8% 40 59 +46.7% Gains (losses) on financial transactions

  58. Slide 58: Digital Consumer Bank (EUR mn)

    Digital Consumer Bank (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 1,020 1,012 1,000 990 1,029 +4.0% 1,020 1,029 +0.9% Net fee income 206 219 204 215 191 -11.1% 206 191 -7.3% Gains (losses) on financial t

  59. Slide 59: Digital Consumer Bank (Constant EUR mn)

    Digital Consumer Bank (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 999 994 984 982 1,029 +4.8% 999 1,029 +3.0% Net fee income 205 218 203 214 191 -10.9% 205 191 -6.9% Gains (losses) on financial

  60. Slide 60: Corporate Centre (EUR mn)

    Corporate Centre (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income (172) (181) (157) (142) (52) -63.6% (172) (52) -69.9% Net fee income (3) 2 (2) (16) (3) -78.8% (3) (3) +8.7% Gains (losses) on financial trans

  61. Slide 61: Retail Banking (EUR mn)

    Retail Banking (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 8,112 8,635 9,058 9,050 8,977 -0.8% 8,112 8,977 +10.7% Net fee income 1,807 1,982 1,968 1,896 1,901 +0.2% 1,807 1,901 +5.2% Gains (losses) on fi

  62. Slide 62: Retail Banking (Constant EUR mn)

    Retail Banking (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 8,198 8,364 8,710 9,042 8,977 -0.7% 8,198 8,977 +9.5% Net fee income 1,818 1,915 1,900 1,928 1,901 -1.4% 1,818 1,901 +4.6% Gains (losse

  63. Slide 63: Corporate & Investment Banking (EUR mn)

    Corporate & Investment Banking (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 783 929 916 919 838 -8.8% 783 838 +7.0% Net fee income 529 500 489 464 619 +33.4% 529 619 +17.0% Gains (losses) on financial tra

  64. Slide 64: Corporate & Investment Banking (Constant EUR mn)

    Corporate & Investment Banking (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 781 883 859 959 838 -12.7% 781 838 +7.2% Net fee income 532 484 472 469 619 +31.8% 532 619 +16.4% Gains (losses) on fin

  65. Slide 65: Wealth Management & Insurance (EUR mn)

    Wealth Management & Insurance (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 131 167 227 322 413 +28.3% 131 413 +216.3% Net fee income 322 333 328 309 309 -0.2% 322 309 -4.1% Gains (losses) on financial tra

  66. Slide 66: Wealth Management & Insurance (Constant EUR mn)

    Wealth Management & Insurance (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 130 162 221 321 413 +28.5% 130 413 +217.8% Net fee income 326 327 318 311 309 -0.8% 326 309 -5.4% Gains (losses) on fina

  67. Slide 67: PagoNxt (EUR mn)

    PagoNxt (EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 2 3 6 11 9 -13.8% 2 9 +432.4% Net fee income 157 222 231 270 218 -19.2% 157 218 +38.8% Gains (losses) on financial transactions and other 3 11 19 18 16

  68. Slide 68: PagoNxt (Constant EUR mn)

    PagoNxt (Constant EUR mn) Change Change Underlying income statement Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'23 / Q4'22 Q1'22 Q1'23 Q1'23 / Q1'22 Net interest income 2 3 6 10 9 -11.0% 2 9 +416.3% Net fee income 167 218 226 267 218 -18.2% 167 218 +30.7% Gains (losses) on financial transactions and other 3 10

  69. Slide 69: Supplementary information

    Supplementary information Balance sheet and capital management Yield on loans and cost of deposits NPL and coverage ratios and cost of credit Quarterly income statements Glossary 69

  70. Slide 70: Glossary - Acronyms

    Glossary - Acronyms ❑ ALCO: Assets and Liabilities Committee ❑ HTC&S: Held to collect and sell ❑ Repos: Repurchase agreements ❑ AT1: Additional Tier 1 ❑ IFRS 9: International Financial Reporting ❑ RoRWA: Return on risk-weighted assets Standard 9, regarding financial instruments ❑ AuM: Assets under M

  71. Slide 71: 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

  72. Slide 72: 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:

Banco Santander — Q1 2023 Earnings Presentation on 6ix