Banco Santander, S.a. · BME:SAN
Banco Santander — 9M 2019 Earnings Presentation
104 slides from Banco Santander's earnings presentation, Oct 30, 2019
Slide 1: 9M'19 Earnings Presentation
30 October 2019 9M'19 Earnings Presentation Here to help you prosper
Slide 2: Important Information
Important Information Non-IFRS and alternative performance measures In addition to the financial information prepared in accordance with International Financial Reporting Standards (“IFRS”) and derived from our financial statements, this presentation contains certain financial measures that constitu
Slide 3: Important Information
Important Information Forward-looking statements speak only as of the date of this presentation and are based on the knowledge, information available and views taken on such date; such knowledge, information and views may change at any time. Santander does not undertake any obligation to update or r
Slide 4: Index
Index 1. Group performance 9M'19 2. Business areas performance 9M'19 3. Concluding remarks 4. Appendix 5. Glossary 4
Slide 5: Group performance 9M'19
Group performance 9M'19 01
Slide 6: Group's highlights
Group’s highlights Continued growth in customers, volumes and underlying profit in a volatile environment Our loyal and digital customer base continues double digit growth, increasing digital activity Activity Volumes increased: loans (+4% YoY) and customer funds (+6% YoY) Q3'19 attributable prof
Slide 7: Geographic regions' summary
Geographic regions’ summary Europe: focus on operating in a more integrated way. The Americas: solid volume and profit growth while capturing new opportunities Total customers1 Loans Customer funds Underlying profit RoTE (millions) (EUR bn) (EUR bn) (EUR mn) (9M’19) Europe 67 635 662 3,640 10% +2% +
Slide 8: Customers and digital activity
Customers and digital activity 8
Slide 9: Larger customer base, increased loyalty ratio
Our successful commercial and digital transformation strategy is reflected in a larger customer base, increased loyalty ratio… Total customers Loyal customers Loyal / Active 144 mn (+4%) 21.0 mn (+10%) customers Individuals (mn) Companies (k) +10% +5% 29.5% 30.2% 141 142 144 17.5 19.2 1,676 1,762 13
Slide 10: Increased activity and number of digital customers
…as well as in increased activity and number of digital customers Digital customers1 # Accesses2 # Transactions3 (online and mobile) (monetary and voluntary) 36.2 mn (+20%) 5,742 mn in 9M'19 (+27%) 1,634 mn in 9M'19 (+25%) 36.2 545 573 33.9 34.8 2,016 498 517 32.0 1,895 30.1 1,768 1,830 443 456 27.5
Slide 11: Results, profitability and solvency
Results, profitability and solvency 11
Slide 12: 9M'19 underlying P&L YoY performance
9M'19 underlying P&L YoY performance 9M'19 9M’18 % vs. 9M’18 EUR million Constant Euros euros Higher customer revenue due to Net interest income 26,442 25,280 5 5 increased business volumes and spread management Net fee income 8,818 8,529 3 4 Lower market revenue and Gains on fin. trans. and other 1
Slide 13: Net capital gains and provisions
Net capital gains and provisions EUR million Q1’19 Q3’19 Capital gains Prisma (Argentina) +150 Restructuring costs (-66 UK; -12 Poland) -78 PPI1 (UK) -103 Property sales (Corporate Centre) -180 Restructuring costs (-12 UK; -8 Poland) -20 Group total -108 FX impact in Prisma trading gains -20 Q2’19 S
Slide 14: Resilient underlying profit in a challenging environment
Resilient underlying profit in a challenging environment (+4% vs. Q2’19 and vs. Q3’18) Group underlying attributable profit Constant EUR million 2,167 2,091 2,084 1,968 1,959 2,013 1,928 Q1'18 Q2 Q3 Q4 Q1'19 Q2 Q3 Note: Contribution to the SRF (net of tax) recorded in Q2’18 (EUR -187 mn) and Q2'19 (
Slide 15: Customer revenue growth QoQ and YoY
Customer revenue growth QoQ (+2%) and YoY (+5%) driven by developing markets and consumer businesses Net interest income YoY growth due to higher volumes and spread management, 8,895 8,966 with improvements in 6 of our 10 core markets 8,663 QoQ positive evolution in developing markets while mature 8
Slide 16: Higher NII due to increased business volumes
Higher NII due to increased business volumes, partially offset by lower interest rates Average volumes NIM Mature +2% +4% Flat YoY markets 9M'19 vs. 9M’18 +2% Loans Deposits Net interest income +5% Average volumes NIM Developing markets Slight decrease due +12% +12% to lower rates +9% Loans Deposits
Slide 17: Higher net fee income driven by Retail Banking and WM&I
Higher net fee income driven by Retail Banking and WM&I contribution. SCIB improved in the quarter Activity growth1 Net fee income by market1 Developing Mature Mutual fund markets markets balances +7% +12% -3% Card turnover +11% Net fee income by segment1 SCIB 0% Insurance premiums +9% Wealth Manage
Slide 18: Costs reflect integration synergies
Costs (-1% YoY in real terms) reflect integration synergies, maintaining a best-in-class cost-to-income ratio and high quality customer service Cost evolution 9M'19 vs. 9M’18, % Nominal In real terms1 Targeted cost management by geographies: -7.0 -8.0 Europe: -2.5% in real terms, enhancing operating
Slide 19: Sound credit quality, lower NPL and high coverage
Sound credit quality underpinned by lower NPL and high coverage ratios. Cost of credit remained at very low levels % 0.98 0.98 1.00 Cost of credit Lower or stable cost of credit in 8 core markets 3.87 3.51 3.47 NPL ratio fell YoY in most markets NPL ratio 68 68 67 High level of allowances to total l
Slide 20: Organic capital generation
We continued to generate capital organically (+19 bps QoQ; +48 bps YTD) CET1 ratio impacted by regulatory effects and restructuring costs CET1 ratio YTD evolution % +0.48 +0.10 11.83 11.30 -0.05 11.30 QoQ evolution -0.53 Organic generation +19 bps Others -2 bps Regulatory impacts -17 bps Santander c
Slide 21: Creating shareholder value while maintaining high profitability
Creating shareholder value whilst maintaining high profitability TNAV per share Profitability ratios EUR Underlying RoTE1 Underlying RoRWA1 +2% 4.25 12.1% 11.9% 1.59% 1.63% 4.16 Sep-18 Sep-19 2018 9M'19 2018 9M'19 TNAV per share + Dividend per share: +8% YoY (1) Statutory RoTE: 2018 11.7%; 9M'19 8.3
Slide 22: Business areas performance 9M'19
Business areas performance 9M'19 02
Slide 23: Well balanced Group profit between Europe and the Americas
Well balanced Group profit between Europe (46%) and the Americas (54%), with overall profit growth by markets and global businesses 9M'19 Underlying attributable profit1 9M'19 Underlying attributable profit EUR mn and % change vs. 9M’18 in constant euros 2,249 +19% 1,185 +3% Spain, Brazil, 15% SCF 9
Slide 24: Widespread growth in loans and customer funds
Continued widespread growth: loans (+4% YoY) and customer funds (+6% YoY), boosted by developing markets and our consumer businesses Loans and advances to customers in core markets Customer funds in core markets EUR bn and YoY change in constant EUR EUR bn and YoY change in constant EUR 236 +2% 313
Slide 25: Brazil
Brazil: YoY double-digit profit growth due to higher NII and fee income (increased volumes and activity), cost control and cost of credit improvement. High RoTE (22%) P&L* Q3'19 % Q2'19 9M'19 % 9M'18 NII 2,560 1.6 7,539 5.5 22% +28% Net fee income 970 4.9 2,825 12.2 Loyal/active Digital customers cu
Slide 26: Spain
Spain: profit up boosted by cost synergies, the improvement in customer spread (+20 bps vs. 9M’18) and portfolio management. QoQ profit evolution benefited by SRF contribution in Q2 P&L* Q3'19 % Q2'19 9M'19 % 9M'18 NII 967 -4.2 2,985 -1.8 +1% 31% +20% Net fee income 1 614 -1.6 1,861 -6.5 Loyal/activ
Slide 27: SCF: leadership in Europe
SCF: leadership in Europe with best-in-class profitability (RoRWA: 2.3%) and efficiency. Historically low NPL ratio and cost of credit. LLPs normalised following portfolio sales in Q2 P&L* Q3'19 % Q2'19 9M'19 % 9M'18 NII 977 0.9 2,888 4.3 19.2 mn 43.7% Net fee income 213 6.0 627 3.1 Total Efficiency
Slide 28: UK
UK: results reflect competitive income pressure from lower mortgage margins and SVR attrition. Cost management is starting to improve efficiency while credit quality remains very good P&L* Q3'19 % Q2'19 9M'19 % 9M'18 NII 908 -0.6 2,827 -8.0 32% +7% Net fee income 217 7.8 640 -7.1 Loyal/active Digita
Slide 29: Other countries (1)
Other countries (1) Underlying profit RoTE Positive evolution YoY in both volumes and results. QoQ profit affected by lower rates and seasonality in SC USA EUR 619 mn 10%1 Efficiency improved YoY (2 pp), driven by increased revenue and cost +27% USA control Double-digit profit growth due to higher c
Slide 30: Other countries (2)
Other countries (2) Underlying profit RoTE EUR YoY profit growth driven by ALCO portfolio sales, lower costs due to integration synergies and LLP releases (strong improvement in credit quality) 385 mn 12% +12% Portugal EUR Solid performance both YoY and QoQ in customer revenue. Profit dampened YoY b
Slide 31: Corporate Centre
Corporate Centre P&L* 9M'19 9M'18 NII -919 -728 Higher loss in NII due to higher stock of issuances and IFRS 16 impact Gains/Losses on FT -257 15 FX hedging cost reflected in results from financial transactions Operating expenses -283 -319 Operating expenses reflect the streamlining and simplificati
Slide 32: Santander Global Platform - Openbank and Open Digital Services
Santander Global Platform (SGP) - Openbank and Open Digital Services (ODS) Openbank in Spain - fully digital bank Open Digital Services (ODS) – BaaS model Continued strong growth backed by the wide range of products ODS is creating a new banking platform used for and services. The leading bank in cu
Slide 33: SGP - Global Payments Services and Santander InnoVentures
SGP - Global Payments Services and Santander InnoVentures Superdigital - “Banking without a bank” Global Merchant Services - Acquiring solutions >600k active users >1 million active customers Continued strong growth in From to in the first phase1: Rest of Recently launched in South America Pago FX -
Slide 34: Concluding remarks
Concluding remarks 03
Slide 35: We continue to make progress towards our commitments
We continue to make progress towards our commitments Underlying profit growth in 8 of our 10 core markets YoY Resilient results in a volatile Customer revenue up (NII +5%; fee income +4%). Of note was the growth in net fee income in Q3 environment Group Costs reflecting synergies (-1% in real
Slide 36: We continue to make progress towards our commitments
We continue to make progress towards our commitments Santander Global Platform (SGP) continued to progress according to the envisaged schedule Accelerating our We launched Openbank in Germany, Superdigital in Chile and the Trade Club Alliance platform within the digitalisation Global Trade Servi
Slide 37: Appendix
Appendix 04
Slide 38: Appendix contents
Appendix Primary segments Secondary segments Other countries Balance sheet and capital management NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements
Slide 39: Europe
Europe: in a low interest rate and low growth environment, results reflect revenue pressure, cost control and good credit quality. Working to simplify and integrate our structure P&L* Q3'19 % Q2'19 9M'19 % 9M'18 NII 3,530 -0.4 10,671 1.1 35% +12% Net fee income 1,310 1.1 3,941 -4.1 Loyal/active Digi
Slide 40: North America
North America: double digit profit improvement in the US and Mexico, while increasing coordination between both countries P&L* Q3'19 % Q2'19 9M'19 % 9M'18 NII 2,259 0.7 6,661 7.3 29% +40% Net fee income 448 -3.7 1,349 5.0 Loyal/active Digital customers customers Total income 2,983 1.6 8,655 7.4 Oper
Slide 41: South America
South America: strong growth in volumes and profit YoY. Focus on accelerating profitable growth, strengthening a more connected regional network P&L* Q3'19 % Q2'19 9M'19 % 9M'18 NII 3,314 2.5 9,960 8.5 26% +23% Net fee income 1,204 9.6 3,559 14.7 Loyal/active Digital customers customers Total income
Slide 42: Appendix contents
Appendix Primary segments Secondary segments Other countries Balance sheet and capital management NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements 42
Slide 43: Retail Banking
Retail Banking: continued focus on customer loyalty and digital transformation. We continued to launch new products and services that cover our customers’ needs P&L* Q3'19 % Q2'19 9M'19 % 9M'18 ACTIVITY NII 8,308 1.1 24,861 4.3 EUR bn and % change in constant euros Net fee income 2,244 2.4 6,827 5.3
Slide 44: Corporate & Investment Banking
Corporate & Investment Banking: YoY profit growth driven by value added businesses which more than offset lower Markets results. QoQ net fee growth mainly due to Project Finance, Trade and Corporate Finance P&L* Q3'19 % Q2'19 9M'19 % 9M'18 Total income NII 655 -0.9 2,009 16.7 Constant EUR mn 3,697 +
Slide 45: Wealth Management & Insurance
Wealth Management & Insurance: strategic initiatives focused on the development of Private Banking’s global and digital platform and strengthening SAM and Insurance’s value proposition ACTIVITY P&L* Q3'19 % Q2'19 9M'19 % 9M'18 EUR bn and % change YoY in constant euros NII 139 2.8 422 8.3 Total AUM 3
Slide 46: Appendix contents
Appendix Primary segments Secondary segments Other countries Balance sheet and capital management NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements 46
Slide 47: USA
USA: Positive evolution YoY in both volumes and results. QoQ profit affected by lower rates and seasonality in SC USA P&L* Q3'19 % Q2'19 9M'19 % 9M'18 NII 1,460 -0.6 4,320 6.0 +2% 18% +9% Net fee income 238 -3.9 716 5.1 Loyal/active Digital customers customers Total income 1,977 1.8 5,711 7.9 +5% Op
Slide 48: Mexico
Mexico: YoY double-digit profit growth due to higher customer revenue and lower cost of credit. Santander’s stake in Santander México increased to 91.65% P&L* Q3'19 % Q2'19 9M'19 % 9M'18 NII 798 3.2 2,341 9.8 32% +51% Net fee income 210 -3.4 633 4.8 Loyal/active Digital customers customers Total inc
Slide 49: Chile
Chile: profit increase driven by good market results, cost control and lower provisions. Record increase in customers QoQ with strong fee income growth. NII affected by lower inflation (UF1) P&L* Q3'19 % Q2'19 9M'19 % 9M'18 NII 462 -5.3 1,402 -1.8 47% +13% Net fee income 102 7.5 302 -5.7 Loyal/activ
Slide 50: Portugal
Portugal: YoY profit growth thanks to lower costs due to integration synergies, ALCO portfolio management and LLP releases (strong improvement in credit quality) P&L* Q3'19 % Q2'19 9M'19 % 9M'18 NII 214 0.3 643 -0.5 +12% 45% Net fee income 96 -3.3 292 4.1 Loyal/active Digital customers customers Tot
Slide 51: Poland
Poland: solid performance both YoY and QoQ in revenue and efficiency. Profit dampened YoY by increased banking tax and BFG1 contributions and QoQ by non-repeat of dividend income P&L* Q3'19 % Q2'19 9M'19 % 9M'18 NII 298 5.9 863 19.7 53% +13% Net fee income 119 3.0 349 4.7 Loyal/active Digital custom
Slide 52: Argentina
Argentina: YoY negative impact of the peso’s depreciation and higher monetary adjustment were more than offset by revenue growth in a higher interest rate environment P&L* Q3'19 % Q2'19 9M'19 % 9M'18 NII 180 28.1 690 123.5 47% +4% Net fee income 88 46.4 328 83.0 Loyal/active Digital Total income 237
Slide 53: Uruguay and Andean Region
Uruguay and Andean Region. Increased volumes and activity reflected in profit growth (NII and fee income growth) and efficiency improvement URUGUAY PERU COLOMBIA +16% +6% +250% 111 96 31 17 29 5 9M'18 9M'19 9M'18 9M'19 9M'18 9M'19 29% 19% 17% RoTE RoTE RoTE Note: Underlying attributable profit in co
Slide 54: Appendix contents
Appendix Primary segments Secondary segments Other countries Balance sheet and capital management NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements 54
Slide 55: Highly liquid balance sheet with large customer deposits
Santander has a highly liquid balance sheet with a large contribution from customer deposits and diversified MLT wholesale debt instruments Liquidity Balance Sheet EUR bn, Sep-19 1,216 1,216 LCR NSFR LTD Aug-19 Jun-19 Sep-19 Loans and Customer advances to 814 deposits 155% 113% 112% customers 916 Gr
Slide 56: MLT debt issuances and maturity profile
In the year to date, the Group has issued EUR 24 bn1 of MLT debt and is able to cover its very manageable maturity profile Public market issuances in 2019 Maturity profile EUR bn, Sep-19 EUR bn, Sep-19 43.3 6.3 9.2 7.9 San S.A. 1.2 3.4 9.7 1.1 5.8 5.0 3.9 6.4 SCF 0.2 3.0 2.4 3.0 0.7 19.0 2019 2020 2
Slide 57: Interest rate risk and ALCO portfolios
We actively manage interest rate risk and our ALCO portfolios to optimise results while maintaining an appropriate risk profile Mostly positive interest rate sensitivity ALCO portfolios reflect our geographic diversification Net interest income sensitivity to a +100 bp parallel shift Distribution of
Slide 58: Capital levels exceed minimum regulatory requirements
Santander’s capital levels, both phased-in and fully loaded, exceed minimum regulatory requirements SREP capital requirements (phased-in) and MDA Sep-19 14.71% 13.18% +153 bps The minimum CET1 to be maintained by the Group for 1.91% T2 2019 is 9.68% T2 2.00% 1.50% AT1 AT1 1.50% +162 bps AT1 and T2 i
Slide 59: Appendix contents
Appendix Primary segments Secondary segments Other countries Balance sheet and capital management NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements 59
Slide 60: Coverage ratio by stage
Appendix Coverage ratio by stage Exposure1 Coverage EUR bn Sep-19 Sep-19 Sep-18 Stage 1 874 0.5% 0.5% Stage 2 55 8.2% 8.9% Stage 3 34 42.2% 42.7% (1) Exposure subject to impairment. Additionally, there are EUR 25 bn in customer loans not subject to impairment recorded at mark to market with changes
Slide 61: NPL ratio
Appendix NPL ratio % Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 EUROPE 4.08 3.97 3.90 3.67 3.61 3.48 3.47 Spain 7.74 7.62 7.55 7.32 7.29 7.02 7.23 Santander Consumer Finance 2.48 2.44 2.45 2.29 2.33 2.24 2.25 United Kingdom 1.17 1.13 1.12 1.08 1.17 1.13 1.08 Portugal 8.29 7.55 7.43 5.94 5.77 5
Slide 62: Coverage ratio
Appendix Coverage ratio % Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 EUROPE 54.4 52.9 52.1 50.1 49.5 49.9 48.2 Spain 49.8 47.5 46.4 43.7 43.3 42.9 40.6 Santander Consumer Finance 107.2 107.7 106.4 106.4 105.3 105.9 104.2 United Kingdom 34.4 33.8 33.0 32.9 30.9 31.9 34.1 Portugal 53.9 52.7 53.4
Slide 63: Non-performing loans and loan-loss allowances
Appendix Non-performing loans and loan-loss allowances. September 2019 Non-performing loans Loan-loss allowances 100%: EUR 34,326 million 100%: EUR 23,112 million Brazil, 13.2% Brazil, 20.2% Chile, 5.7% Spain, 28.1% Argentina, 0.6% Uruguay and And. Reg., 0.4% Mexico, 2.4% Spain, 45.9% Chile, 5.0% US
Slide 64: Cost of credit
Appendix Cost of credit % Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 EUROPE 0.24 0.25 0.26 0.24 0.24 0.24 0.25 Spain 0.35 0.36 0.41 0.38 0.40 0.41 0.41 Santander Consumer Finance 0.36 0.37 0.40 0.38 0.38 0.36 0.38 United Kingdom 0.11 0.10 0.09 0.07 0.07 0.06 0.08 Portugal 0.08 0.10 0.03 0.09 0
Slide 65: Appendix contents
Appendix Primary segments Secondary segments Other countries Balance sheet and capital management NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements 65
Slide 66: Santander Responsible Banking
Santander Responsible Banking Our activity helps us to address today’s main global challenges, a number of the United Nations’ Sustainable Development Goals, and support the Paris Agreement’s aim to tackle climate change and adapt to its effects. We are building a more responsible bank … Most sustai
Slide 67: Aligned with our commitments
From…To…. … aligned with our commitments Cumulative target 2018 2019 2020 2021 2022 2023 2024 2025 Top 10 company to work for1 4 6 Women on the Board 33% 40%-60% Women in senior leadership positions2 (%) 20% 30% Equal pay gap3 3% ~0% Financially empowered people4 10 Mn Green finance raised and facil
Slide 68: Appendix contents
Appendix Primary segments Secondary segments Other countries Balance sheet and capital management NPL and coverage ratios and cost of credit Responsible Banking Quarterly income statements 68
Slide 69: Grupo Santander
Appendix GRUPO SANTANDER EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 8,454 8,477 8,349 9,061 8,682 8,954 8,806 25,280 26,442 Net fee income 2,955 2,934 2,640 2,956 2,931 2,932 2,955 8,529 8,818 Gains (losses) on financial transactions and other 742 600 731 5
Slide 70: Grupo Santander (constant EUR)
Appendix GRUPO SANTANDER Constant EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 8,232 8,386 8,663 8,926 8,581 8,895 8,966 25,281 26,442 Net fee income 2,821 2,862 2,774 2,852 2,884 2,910 3,024 8,457 8,818 Gains (losses) on financial transactions and other 731
Slide 71: Europe
Appendix EUROPE EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 3,502 3,508 3,562 3,631 3,561 3,580 3,530 10,573 10,671 Net fee income 1,372 1,382 1,354 1,327 1,327 1,304 1,310 4,108 3,941 Gains (losses) on financial transactions and other 477 282 503 355 337 30
Slide 72: Europe (constant EUR)
Appendix EUROPE Constant EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 3,494 3,495 3,571 3,633 3,549 3,568 3,553 10,559 10,671 Net fee income 1,371 1,380 1,357 1,328 1,324 1,301 1,315 4,107 3,941 Gains (losses) on financial transactions and other 479 282 505 3
Slide 73: Spain
Appendix Spain EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 969 1,026 1,044 1,054 1,009 1,009 967 3,040 2,985 Net fee income 669 671 651 633 623 624 614 1,991 1,861 Gains (losses) on financial transactions and other 247 163 370 117 224 216 408 781 849 Total i
Slide 74: Santander Consumer Finance
Appendix Santander Consumer Finance EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 915 928 937 943 941 971 977 2,780 2,888 Net fee income 215 188 206 189 214 201 213 609 627 Gains (losses) on financial transactions and other 10 10 13 56 13 (18) 14 34 9 Total in
Slide 75: Santander Consumer Finance (constant EUR)
Appendix Santander Consumer Finance Constant EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 911 924 934 941 941 969 978 2,769 2,888 Net fee income 214 188 206 189 214 201 213 608 627 Gains (losses) on financial transactions and other 10 10 14 56 13 (18) 14 34 9
Slide 76: United Kingdom
Appendix United Kingdom EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 1,023 1,029 1,016 1,011 975 944 908 3,068 2,827 Net fee income 219 240 230 224 216 207 217 688 640 Gains (losses) on financial transactions and other 29 50 55 8 15 32 (5) 134 41 Total income
Slide 77: United Kingdom (GBP)
Appendix United Kingdom GBP million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 904 901 907 896 850 825 820 2,712 2,496 Net fee income 193 210 205 198 189 181 195 608 565 Gains (losses) on financial transactions and other 25 44 49 7 13 28 (4) 118 36 Total income 1,122 1
Slide 78: Portugal
Appendix Portugal EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 222 213 211 211 216 213 214 646 643 Net fee income 98 91 92 96 98 99 96 281 292 Gains (losses) on financial transactions and other 22 42 20 26 44 42 22 83 108 Total income 341 346 323 334 357 354
Slide 79: Poland
Appendix Poland EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 247 240 243 265 281 284 298 730 863 Net fee income 112 114 111 115 113 117 119 338 349 Gains (losses) on financial transactions and other (26) 44 13 10 (18) 39 24 30 46 Total income 333 398 367 390
Slide 80: Poland (PLN)
Appendix Poland PLN million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 1,031 1,025 1,047 1,139 1,209 1,216 1,288 3,103 3,713 Net fee income 469 487 478 493 488 499 514 1,435 1,502 Gains (losses) on financial transactions and other (110) 183 54 41 (76) 168 104 127 196 T
Slide 81: Other Europe
Appendix Other Europe EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 127 71 111 147 139 159 166 309 465 Net fee income 60 77 64 71 62 56 52 201 171 Gains (losses) on financial transactions and other 196 (27) 32 139 60 (7) (8) 201 45 Total income 382 122 207 357
Slide 82: Other Europe (constant EUR)
Appendix Other Europe Constant EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 129 72 111 147 139 159 166 311 465 Net fee income 62 78 65 71 62 56 52 205 171 Gains (losses) on financial transactions and other 197 (26) 33 140 60 (7) (8) 205 45 Total income 388 12
Slide 83: North America
Appendix NORTH AMERICA EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 1,869 1,933 2,065 2,286 2,173 2,230 2,259 5,868 6,661 Net fee income 402 408 407 399 439 463 448 1,216 1,349 Gains (losses) on financial transactions and other 138 197 194 178 142 226 277 529
Slide 84: North America (constant EUR)
Appendix NORTH AMERICA Constant EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 2,026 2,055 2,128 2,351 2,194 2,225 2,241 6,209 6,661 Net fee income 434 434 417 410 443 462 445 1,285 1,349 Gains (losses) on financial transactions and other 151 209 201 181 144 22
Slide 85: United States
Appendix United States EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 1,221 1,281 1,337 1,553 1,407 1,453 1,460 3,838 4,320 Net fee income 214 219 208 217 234 244 238 641 716 Gains (losses) on financial transactions and other 143 170 190 196 174 222 278 503 674
Slide 86: United States (USD)
Appendix United States USD million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 1,500 1,526 1,555 1,780 1,598 1,633 1,623 4,581 4,854 Net fee income 263 261 241 248 266 275 264 766 805 Gains (losses) on financial transactions and other 176 203 222 225 197 250 310 600 758
Slide 87: Mexico
Appendix Mexico EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 649 653 728 733 766 777 798 2,030 2,341 Net fee income 187 188 199 181 204 218 210 575 633 Gains (losses) on financial transactions and other (5) 27 3 (18) (32) 4 (1) 26 (29) Total income 831 868 93
Slide 88: Mexico (MXN)
Appendix Mexico MXN million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 14,945 15,080 16,086 16,573 16,703 16,694 17,231 46,112 50,628 Net fee income 4,312 4,355 4,390 4,098 4,455 4,695 4,535 13,056 13,684 Gains (losses) on financial transactions and other (114) 623 71
Slide 89: South America
Appendix SOUTH AMERICA EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 3,298 3,259 2,952 3,382 3,222 3,425 3,314 9,509 9,960 Net fee income 1,189 1,151 903 1,254 1,178 1,178 1,204 3,243 3,559 Gains (losses) on financial transactions and other 123 131 28 4 88 45
Slide 90: South America (constant EUR)
Appendix SOUTH AMERICA Constant EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 2,928 3,059 3,195 3,181 3,111 3,382 3,467 9,182 9,960 Net fee income 1,024 1,055 1,024 1,138 1,129 1,159 1,271 3,103 3,559 Gains (losses) on financial transactions and other 97 93 75
Slide 91: Brazil
Appendix Brazil EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 2,482 2,424 2,377 2,475 2,459 2,520 2,560 7,283 7,539 Net fee income 920 872 776 929 931 924 970 2,568 2,825 Gains (losses) on financial transactions and other 42 27 27 (8) 21 9 (7) 97 23 Total inco
Slide 92: Brazil (BRL)
Appendix Brazil BRL million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 9,898 10,383 10,874 10,747 10,516 11,095 11,272 31,156 32,883 Net fee income 3,670 3,738 3,577 4,032 3,980 4,070 4,271 10,985 12,321 Gains (losses) on financial transactions and other 169 119 128 (3
Slide 93: Chile
Appendix Chile EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 490 495 481 477 440 500 462 1,466 1,402 Net fee income 111 117 101 95 103 97 102 329 302 Gains (losses) on financial transactions and other 40 30 49 49 56 59 82 119 197 Total income 640 642 632 622 6
Slide 94: Chile (CLP)
Appendix Chile CLP million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 362,502 366,847 370,827 370,410 333,439 383,545 363,195 1,100,175 1,080,180 Net fee income 81,758 86,556 78,318 73,959 78,010 74,473 80,052 246,633 232,535 Gains (losses) on financial transactions an
Slide 95: Argentina
Appendix Argentina EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 214 234 (6) 327 213 298 180 442 690 Net fee income 129 133 (6) 192 116 125 88 256 328 Gains (losses) on financial transactions and other 34 63 (58) (46) 2 (33) (31) 39 (62) Total income 377 430 (
Slide 96: Argentina (ARS)
Appendix Argentina ARS million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 5,172 6,385 7,820 8,507 10,117 14,548 18,638 19,377 43,303 Net fee income 3,121 3,660 4,472 5,022 5,486 6,131 8,976 11,253 20,593 Gains (losses) on financial transactions and other 824 1,683 (799
Slide 97: Other South America
Appendix Other South America EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 112 106 100 103 109 108 112 318 329 Net fee income 29 29 31 38 29 32 44 90 104 Gains (losses) on financial transactions and other 7 11 9 8 8 9 16 27 33 Total income 148 146 141 150 146
Slide 98: Other South America (constant EUR)
Appendix Other South America Constant EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 105 100 96 100 106 109 114 302 329 Net fee income 27 28 30 38 28 32 45 85 104 Gains (losses) on financial transactions and other 7 10 9 8 8 9 16 26 33 Total income 139 138 135
Slide 99: Santander Global Platform
Appendix SANTANDER GLOBAL PLATFORM EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income 18 20 20 20 22 23 23 59 69 Net fee income 1 1 1 4 2 1 2 4 4 Gains (losses) on financial transactions and other (4) (3) (3) (2) (5) (4) (1) (9) (11) Total income 16 18 19 21 19 20
Slide 100: Corporate Centre
Appendix CORPORATE CENTRE EUR million Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 9M'18 9M'19 Net interest income (234) (243) (251) (259) (296) (304) (319) (728) (919) Net fee income (9) (9) (24) (28) (14) (13) (9) (42) (35) Gains (losses) on financial transactions and other 7 (7) 9 (10) (90) (106) (8
Slide 101: Glossary
Glossary 05
Slide 102: Glossary - Acronyms
Glossary - Acronyms AuM: Assets under Management M/LT: Medium- and long-term RoRWA: Return on risk-weighted assets bn: Billion mn: million RoTE: Return on tangible equity CET1: Common equity tier 1 MREL: Minimum requirement for own funds and RWA: Risk-weighted assets eligible liabilities CIB: Corpor
Slide 103: 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 assets E
Slide 104: Thank you.
Thank you. Our purpose is to help people and business prosper. Our culture is based on believing that everything we do should be