Banco Santander, S.a. · BME:SAN
Banco Santander — H1 2017 Earnings Presentation
84 slides from Banco Santander's earnings presentation, Jul 28, 2017
Slide 1: 1H'17 Earnings Presentation
28 July 2017 1H'17 Earnings Presentation José Antonio Álvarez, CEO José García Cantera, CFO
Slide 2: Important information
Important information Banco Santander, S.A. ("Santander") cautions that this presentation contains statements that constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “e
Slide 3: Important Information
Important Information The businesses included in each of our geographic segments and the accounting principles under which their results are presented here may differ from the included businesses and local applicable accounting principles of our public subsidiaries in such geographies. Accordingly,
Slide 4: Content
Content Banco Popular acquisition Group performance 1H'17 Business areas performance 1H'17 Concluding remarks Appendix Glossary
Slide 5: Strong strategic business fit at an attractive point in the cycle
Strong strategic business fit at an attractive point in the cycle Acquisition in a core market In Spain, creating the leading bank in loans and deposits In Portugal, reinforcing our leadership Group targeted RoI year 3 Group efficiency improvement 13 – 14% ~ €500 mill. Leading SME franchise in Spain
Slide 6: First measures taken after the acquisition
First measures taken after the acquisition The acquisition needs the authorisation, among others, of the EU Competition Authority. The integration and commercial activity are limited to this context Stabilise Popular’s operating liquidity and restore liquidity Customer deposits in Spain (€ billion)
Slide 7: Impact on Grupo Santander from estimated adjustments in Popular's acquisition
Impact on Grupo Santander from estimated* adjustments in Popular’s acquisition Estimated adjustment to Santander Equity (€bn) Grupo Santander - Fully-loaded CET1 12.2 Santander FL CET1 dropped as Banco Popular 10.2 2.0 consolidated RWAs with negative equity -4.3 10.72% -7.2 9.58% -1.14% -0.7 -0.2 -0
Slide 8: Rights issue to reinforce equity to cover the Banco Popular acquisition
To reinforce Santander’s equity to cover the acquisition of Banco Popular, we have successfully completed a rights issue Capital increase of €7,072 mill. Grupo Santander - Fully-loaded CET1 pro-forma Number of shares issued: 1,458 mill. % share capital (pre-transaction): 10% Banco Popular's acquisit
Slide 9: Impact on Popular's regulatory capital ratio
Impact on Popular’s regulatory capital ratio Estimated Popular – Phase-in CET1 pro-forma Pre Santander Post Santander Popular’s c.10.5% 9.1% Popular’s regulatory capital ratio affected by Resolution an estimated negative impact in Popular’s P&L of c.€12bn. resulting from the Bank’s resolution The ex
Slide 10: Grupo Santander including Popular
Grupo Santander including Popular P&L – 1H’17 Group excl. Grupo Activity – J’17 Group excl. Grupo € mill. Popular Popular2 Santander € bill. Popular Popular Santander Gross income 23,939 139 24,078 Net loans 779 82 861 Operating expenses -11,095 -96 -11,191 Deposits 699 65 764 Net op. Income 12,844
Slide 11: Content
Content Banco Popular acquisition Group performance 1H'17 Business areas performance 1H'17 Concluding remarks Appendix Glossary
Slide 12: 1H'17 Financial Highlights – Group excl. Popular
1H’17 Financial Highlights – Group excl. Popular 1H’17 / 1H’16 change Attributable profit €3,605 mill.; +24% Strong profit growth Underlying att. profit* +11% (constant euros) Revenues’ increase consistent with our Net interest income1 +7% commercial strategy +11% Fee income1 FL CET1 10.72% Improved
Slide 13: 1H'17 Business Highlights – Group excl. Popular
1H’17 Business Highlights – Group excl. Popular Jun’17 / Jun’16 change Selective growth: Loans +1% − Retail banking lending (+2%) − Demand deposits (+12%); mutual funds (+13%) Customer funds +8% Enhanced balance sheet quality NPL ratio 3.55%; -74 bp and low cost of credit Cost of credit 1.19%; 0 bp
Slide 14: Attributable profit rose driven by higher revenues, improved efficiency and lower provisions
Attributable profit rose driven by higher revenues, improved efficiency and positive dynamics in loan-loss provisions € million 1H’17 1H’16 % /1H’16 % /1H’16 Constant euros Gross income 23,939 21,485 11.4 7.0 Higher customer revenues Operating expenses -11,095 -10,384 6.8 3.8 Efficiency improvement
Slide 15: Strong profit growth across the board – excl. Popular
Strong profit growth across the board – excl. Popular Underlying attributable profit Underlying attributable profit in core markets 1H’17 Constant € million € million and % change / 1H’16 in constant euros Brazil 1,244 +32% UK 824 +8% 1,847 1,784 1,758 1,682 1,730 SCF SCF 633 +18% 1,571 Spain 603 +1
Slide 16: Revenues rose in 8 of 10 markets driven by recurring customer revenues
Revenues rose in 8 of 10 markets driven by strong recurring customer revenues excl. Popular Gross income € million Net interest income 8,587 8,195 565 -52 23,939 7,846 22,367 1,059 +11% -4% +7% Fee income 2,914 2,651 2,681 +7% Other income* 654 548 538 1H’16 Net Fee income Other 1H’17 1Q'16 2Q 3Q 4Q
Slide 17: Positive and balanced business volumes performance
Positive and balanced business volumes performance – excl. Popular Loan portfolio: growth supported by developing markets Customer funds: growth in 9 core markets Mature markets Developing markets Mature markets Developing markets Jun’17 € Billion YoY change Jun’17 € Billion YoY change Jun’17 € Bill
Slide 18: Committed to improve efficiency and operational excellence
Committed to improve efficiency and operational excellence. Cost-to-income ratio: 46% excl. Popular Active cost management 8 markets with costs flat or below inflation rate1 € million 1H’17 / 1H’16, % Nominal In real terms1 revenues vs. costs +3.8% Brazil 6.6 0.6 UK 1.1 -0.6 10,693 11,095 SCF 3.
Slide 19: Enhanced credit quality in most markets
Enhanced credit quality in most markets – excl. Popular Lower loan-loss provisions Credit quality ratios € million %, including Popular 75 Cost of credit1 74 73 73 73 1.19 1.19 Coverage ratio 4,954 -6% 4,672 68 5.37 NPL ratio 4.29 4.15 3.93 3.74 3.55 J'16 S'16 D'16 M'17 J'17 Banco Popular J’17 1H’16
Slide 20: Non-core real estate activity
Non-core real estate activity Santander Real Estate Activity Spain Santander including Popular1 Gross value Coverage Net value (€ billion) (%) (€ billion) Santander has a strong track record in reducing Real estate assets 27.1 59 11.1 non-performing assets management Foreclosed assets 23.5 64 8.5 Re
Slide 21: Capital generation with neutral impact after Popular's acquisition
In 2Q'17 we continued to generate capital with neutral impact after Popular's acquisition and Santander's rights issue transaction FL CET1 (%) Including 10.72 June’17 Pro-forma* 10.55 10.66 10.72 Popular 9.58 Total capital ratio: 13.0% 14.2% -1.14 +1.14 Leverage ratio: 4.6% 5.0% We maintain our capi
Slide 22: Delivering on our commitments: creating shareholder value
Delivering on our commitments: creating shareholder value – excl. Popular RoRWA (%) RoTE (%) 10.7 11.7 1.47 1.31 10.3 1.27 1H'16 1H'17 1H'16 1H'17 Underlying EPS (euros) Total TNAV per share (euros) 0.235 4.13 4.15 0.208 0.191 1H'16 1H'17 J'16 J'17 22
Slide 23: Content
Content Banco Popular acquisition Group performance 1H'17 Business areas performance 1H'17 Concluding remarks Appendix Glossary
Slide 24: Well diversified results between Europe and the Americas
Well diversified results between Europe and the Americas – excl. Popular Attributable profit 1H’17* Americas Europe Other Latam, Argentina, 4% 1% 49% UK, 17% 51% Chile, 6% Spain, 13% Brazil, 26% SCF, 13% Mexico, 7% USA, 5% Portugal, 5% Poland, 3% 24 (*) Excluding Corporate Centre, Banco Popular and
Slide 25: Brazil
BRAZIL KEY DATA 1H’16 1H’17 P&L1 2Q’17 %1Q’17 1H’17 %1H’16 NII 2,503 4.6 5,025 14.2 Loyal customers (millions) 3.4 3.8 Fee income 909 2.7 1,843 20.4 Digital customers (millions) 5.5 7.4 Gross income 3,502 -0.6 7,219 18.5 NPL ratio (%) 6.11 5.36 Operating expenses -1,233 -1.0 -2,547 6.6 LLPs -852 -1.
Slide 26: United Kingdom
UNITED KINGDOM KEY DATA 1H’16 1H’17 P&L1 2Q’17 %1Q’17 1H’17 %1H’16 NII 1,149 4.9 2,244 8.3 Loyal customers (millions) 4.0 4.2 Fee income 260 2.7 514 5.6 Digital customers (millions) 4.3 4.8 Gross income 1,544 7.9 2,976 9.1 NPL ratio (%) 1.47 1.23 Operating expenses -723 0.0 -1,446 1.1 LLPs -42 172.1
Slide 27: Santander Consumer Finance
SANTANDER CONSUMER FINANCE KEY DATA 1H’16 1H’17 P&L1 2Q’17 %1Q’17 1H’17 %1H’16 NII 877 -0.9 1,766 6.7 Active customers (millions) 17.6 19.6 Fee income 220 -5.0 451 -1.9 NPL ratio (%) 2.95 2.61 Gross income 1,099 -1.3 2,217 5.1 Operating expenses -485 -3.0 -987 3.2 Cost of credit (%) 0.55 0.37 LLPs -
Slide 28: Spain – excl. Popular
SPAIN – excl. Popular KEY DATA 1H’16 1H’17 P&L1 2Q’17 %1Q’17 1H’17 %1H’16 NII 749 0.4 1,496 -6.6 Loyal customers (millions) 1.2 1.6 Fee income 537 17.0 997 14.1 Digital customers (millions) 2.7 3.0 Gross income 1,351 -12.2 2,890 0.1 NPL ratio (%) 6.06 4.99 Operating expenses -806 1.0 -1,604 -4.0 LLP
Slide 29: Other markets: Mexico, Chile, United States
ATTRIBUTABLE PROFIT (DETAIL BY MARKETS IN THE APPENDIX) Good performance in other markets: larger customer base, higher profits and better credit quality. Of note, was the Fed's no objection to our Capital Plan in the US, including the payment of dividends for the first time since 2011 ■ Focus on st
Slide 30: Corporate Centre
CORPORATE CENTRE Higher losses due to cost of FX hedging and the issues to enhance the Group’s TLAC position. Corporate Centre expenses down 4% YoY Corporate Centre / Total Group (%) P&L € million 1H’16 1H’17 Operating expenses Attributable profit % change 1H’17/1H’16 NII -356 -407 29% Gains/Losses
Slide 31: Content
Content Banco Popular acquisition Group performance 1H'17 Business areas performance 1H'17 Concluding remarks Appendix Glossary
Slide 32: Delivering on our commitments to reach our targets
Delivering on our commitments to reach our targets 1H’17 FY2016 2017 targets excl. Popular Loyal customers (Million) 15.2 16.3 17 Digital customers (Million) 20.9 23.0 25 Fee income1 8% 11% Increase Cost of credit 1.18% 1.19% Improve Cost to income 48.1% 46.3% Broadly stable 0.235 EPS (€) 0.41 (1st
Slide 33: In short
In short, Loyal customers (million) Millennials customers proposition 16.3 17.0 18.6 12.6 13.8 15.2 Select Me – Women proposition 2014 2015 2016 Jun'17 2017 2018 Santander maintains a clear and consistent commercial strategy in Digital customers (million) transformation and digitalisation 30.0 25.0
Slide 34: Content
Content Banco Popular acquisition Group performance 1H'17 Business areas performance 1H'17 Concluding remarks Appendix Glossary
Slide 35: Appendix
Appendix Other geographic markets results Global segments results Liquidity NPL and coverage ratios, and cost of credit Quarterly income statements Popular (P&L and balance sheet)
Slide 36: Other geographic markets results
Other geographic markets results 36
Slide 37: Mexico
MEXICO KEY DATA 1H’16 1H’17 P&L1 2Q’17 %1Q’17 1H’17 %1H’16 NII 663 0.6 1,287 14.3 Loyal customers (thousands) 1,482 1,829 Fee income 193 1.8 373 7.2 Digital customers (thousands) 1,045 1,694 Gross income 914 5.2 1,738 14.7 NPL ratio (%) 3.01 2.58 Operating expenses -361 7.1 -680 10.9 LLPs -246 -0.3
Slide 38: Chile
CHILE KEY DATA 1H’16 1H’17 P&L1 2Q’17 %1Q’17 1H’17 %1H’16 NII 489 5.5 974 3.9 Loyal customers (thousands) 567 613 Fee income 100 -2.5 207 11.4 Digital customers (thousands) 942 983 Gross income 644 4.3 1,288 5.6 NPL ratio (%) 5.28 5.00 Operating expenses -260 3.2 -524 3.0 LLPs -122 5.0 -244 -4.1 Cos
Slide 39: United States – excl. Popular
UNITED STATES – excl. Popular KEY DATA 1H’16 1H’17 P&L1 2Q’17 %1Q’17 1H’17 %1H’16 NII 1,488 3.2 2,977 -4.1 Loyal customers (thousands) 271 307 Fee income 250 -5.3 523 -11.9 Digital customers (thousands) 696 839 Gross income 1,880 3.3 3,759 -5.4 NPL ratio (%) 2.24 2.64 Operating expenses -845 4.3 -1,
Slide 40: Portugal – excl. Popular
PORTUGAL – excl. Popular KEY DATA 1H’16 1H’17 P&L1 2Q’17 %1Q’17 1H’17 %1H’16 NII 167 -2.9 338 -8.7 Loyal customers (thousands) 540 670 Fee income 83 -7.4 172 4.5 Digital customers (thousands) 405 543 Gross income 265 -9.7 559 -9.6 NPL ratio (%) 10.46 7.67 Operating expenses -137 -1.4 -275 -9.2 LLPs
Slide 41: Argentina
ARGENTINA KEY DATA 1H’16 1H’17 P&L1 2Q’17 %1Q’17 1H’17 %1H’16 NII 262 22.2 485 63.5 Loyal customers (thousands) 1,093 1,403 Fee income 165 12.4 317 50.6 Digital customers (thousands)* 1,414 1,642 Gross income 470 19.8 875 44.6 NPL ratio (%) 1.38 2.21 Operating expenses -269 25.8 -490 43.3 LLPs -42 5
Slide 42: Poland
POLAND KEY DATA 1H’16 1H’17 P&L1 2Q’17 %1Q’17 1H’17 %1H’16 NII 231 3.9 449 10.5 Loyal customers (thousands) 1,309 1,343 Fee income 112 8.7 213 7.7 Digital customers (thousands) 1,950 2,025 Gross income 363 10.6 684 1.9 NPL ratio (%) 5.84 4.66 Operating expenses -150 0.7 -296 -0.5 LLPs -34 22.0 -60 -
Slide 43: Other Latin American countries
OTHER LATIN AMERICAN COUNTRIES Attributable profit € million Uruguay Peru +18% 56 +1% 48 18 18 1H'16 1H'17 1H'16 1H'17 Focusing on loyalty, transactions and target segments Uruguay’s profit driven by higher revenues, cost control and lower provisions Peru’s profit affected by lower fee income due to
Slide 44: Global segments results
i “T Global segments results L —/
Slide 45: Retail Banking
RETAIL BANKING ACTIVITY P&L1 2Q’17 %1Q’17 1H’17 %1H’16 € billion and % change in constant euros NII 8,096 4.0 16,044 7.0 Fee income 2,457 2.4 4,905 10.7 680 732 Gross income 10,883 2.8 21,689 8.6 Operating expenses -4,894 2.1 -9,782 4.6 +1% +2% QoQ QoQ LLPs -1,998 -8.1 -4,240 -4.0 PBT 3,244 10.1 6,2
Slide 46: Global Corporate Banking
GLOBAL CORPORATE BANKING GROSS INCOME P&L1 2Q’17 %1Q’17 1H’17 %1H’16 Constant € million NII 625 -2.8 1,281 4.5 TOTAL 2,850 +3% 2,940 Fee income 438 11.3 837 13.0 339 Capital & Other 373 -9% Gross income 1,374 -10.3 2,940 3.1 Operating expenses -488 1.3 -975 -1.2 Global Markets 868 +11% 967 LLPs -238
Slide 47: Santander Real Estate Activity in Spain
SANTANDER REAL ESTATE ACTIVITY IN SPAIN ACTIVITY P&L € million Balance sheet Coverage ratio 1H’17 1H’16 %1H’16 € billion Jun’17 and change / Dec’16 Gross income -9 11 — 11.0 Operating expenses -100 -108 -7 9.9 -3 p.p. -1 p.p. 2.7 2.4 Sareb and Other Provisions -114 -112 2 1.3 Metrovacesa 57% 1.6 1.6
Slide 48: Liquidity
rT Liquidity Ll
Slide 49: Good headway YTD in funding plan to enhance TLAC position
We made good headway YTD in our funding plan to enhance the Group’s TLAC position and optimise its cost of capital – Group excl. Popular Key liquidity ratios Funding plan - issuances Jun’17 Jan-Jun’17 Net Loan-to-Deposit ratio (LTD): 111% Group issuances €15.8bn (~€10.2bn TLAC-eligible) Deposits + M
Slide 50: NPL, coverage ratios and cost of credit
NPL, coverage ratios and cost of credit
Slide 51: NPL ratio
NPL ratio % 31.03.16 30.06.16 30.09.16 31.12.16 31.03.17 30.06.17 Continental Europe 7.08 6.84 6.43 5.92 5.62 5.11 Spain 6.36 6.06 5.82 5.41 5.22 4.99 Santander Consumer Finance 3.28 2.95 2.86 2.68 2.62 2.61 Poland 5.93 5.84 5.71 5.42 5.20 4.66 Portugal 8.55 10.46 9.40 8.81 8.47 7.67 United Kingdom
Slide 52: Coverage ratio
Coverage ratio % 31.03.16 30.06.16 30.09.16 31.12.16 31.03.17 30.06.17 Continental Europe 65.4 61.3 61.3 60.0 60.6 58.7 Spain 50.2 47.6 47.6 48.3 49.1 46.0 Santander Consumer Finance 111.9 110.6 110.7 109.1 108.9 106.5 Poland 67.0 65.8 68.9 61.0 61.2 67.5 Portugal 87.7 61.9 57.8 63.7 61.7 59.8 Unite
Slide 53: Non-performing loans and loan-loss allowances (Ex-Popular)
Non-performing loans and loan-loss allowances (Ex-Popular). June 2017 Non-performing loans Loan-loss allowances 100%: €29,745 mill. 100%: €21,625 mill. Other, 10% Other, 8% Spain, 19% Spain, 29% USA, 7% USA, 18% Chile, 6% Mexico, 3% SCF*, 12% Chile, 5% Brazil, 15% SCF*, 8% Poland, 3% Mexico, 4% Port
Slide 54: Cost of credit
Cost of credit % 31.03.16 30.06.16 30.09.16 31.12.16 31.03.17 30.06.17 Continental Europe 0.60 0.51 0.46 0.44 0.38 0.37 Spain 0.54 0.45 0.41 0.37 0.33 0.33 Santander Consumer Finance 0.64 0.55 0.49 0.47 0.39 0.37 Poland 0.82 0.75 0.76 0.70 0.66 0.65 Portugal 0.28 0.21 0.17 0.18 0.07 0.03 United King
Slide 55: Quarterly income statements
Quarterly income statements
Slide 56: Grupo Santander
Grupo Santander € million 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 1H '16 1H '17 NII + Fee income 10,021 10,119 10,395 10,734 11,246 11,382 20,140 22,628 Gross income 10,730 10,755 11,080 11,288 12,029 11,910 21,485 23,939 Operating expenses (5,158) (5,227) (5,250) (5,453) (5,543) (5,552) (10,384) (11,09
Slide 57: Grupo Santander (constant euros)
Grupo Santander Constant € million 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 1H '16 1H '17 NII + Fee income 10,508 10,496 10,618 10,876 11,127 11,501 21,004 22,628 Gross income 11,217 11,150 11,323 11,424 11,900 12,039 22,367 23,939 Operating expenses (5,330) (5,363) (5,344) (5,519) (5,493) (5,602) (10,69
Slide 58: Spain
Spain € million 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 1H '16 1H '17 NII + Fee income 1,243 1,232 1,185 1,198 1,206 1,287 2,475 2,493 Gross income 1,543 1,343 1,398 1,324 1,539 1,351 2,886 2,890 Operating expenses (837) (834) (824) (802) (798) (806) (1,671) (1,604) Net operating income 706 509 574 522
Slide 59: Santander Consumer Finance
Santander Consumer Finance € million 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 1H '16 1H '17 NII + Fee income 1,041 1,061 1,099 1,052 1,121 1,096 2,102 2,217 Gross income 1,045 1,051 1,106 1,060 1,118 1,099 2,097 2,217 Operating expenses (483) (468) (467) (486) (502) (485) (951) (987) Net operating income
Slide 60: Santander Consumer Finance (constant euros)
Santander Consumer Finance Constant € million 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 1H '16 1H '17 NII + Fee income 1,049 1,066 1,102 1,051 1,118 1,099 2,115 2,217 Gross income 1,053 1,056 1,109 1,059 1,116 1,102 2,109 2,217 Operating expenses (487) (470) (468) (486) (501) (486) (956) (987) Net operati
Slide 61: Poland
Poland € million 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 1H '16 1H '17 NII + Fee income 292 298 321 323 318 343 590 661 Gross income 311 345 330 329 321 363 656 684 Operating expenses (145) (146) (149) (139) (146) (150) (291) (296) Net operating income 166 199 181 190 175 212 365 387 Net loan-loss provi
Slide 62: Poland (PLN million)
Poland PLN million 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 1H '16 1H '17 NII + Fee income 1,275 1,301 1,391 1,412 1,374 1,449 2,576 2,823 Gross income 1,357 1,507 1,430 1,440 1,386 1,532 2,863 2,918 Operating expenses (632) (638) (647) (609) (630) (634) (1,270) (1,264) Net operating income 724 869 783 8
Slide 63: Portugal
Portugal € million 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 1H '16 1H '17 NII + Fee income 273 262 260 251 261 249 535 510 Gross income 337 281 287 304 294 265 618 559 Operating expenses (154) (149) (142) (143) (139) (137) (303) (275) Net operating income 183 132 145 161 155 128 315 283 Net loan-loss pro
Slide 64: United Kingdom
United Kingdom € million 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 1H '16 1H '17 NII + Fee income 1,434 1,393 1,302 1,307 1,349 1,409 2,827 2,758 Gross income 1,513 1,501 1,377 1,425 1,432 1,544 3,014 2,976 Operating expenses (794) (788) (703) (683) (723) (723) (1,581) (1,446) Net operating income 719 713
Slide 65: United Kingdom (£ million)
United Kingdom £ million 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 1H '16 1H '17 NII + Fee income 1,105 1,096 1,108 1,133 1,160 1,213 2,201 2,373 Gross income 1,166 1,180 1,172 1,234 1,231 1,329 2,346 2,560 Operating expenses (611) (619) (599) (594) (622) (622) (1,231) (1,244) Net operating income 554 561
Slide 66: Brazil
Brazil € million 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 1H '16 1H '17 NII + Fee income 2,365 2,583 2,899 3,155 3,455 3,413 4,948 6,868 Gross income 2,381 2,703 3,050 3,187 3,717 3,502 5,083 7,219 Operating expenses (947) (1,046) (1,177) (1,305) (1,314) (1,233) (1,993) (2,547) Net operating income 1,434
Slide 67: Brazil (R$ million)
Brazil R$ million 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 1H '16 1H '17 NII + Fee income 10,161 10,216 10,500 11,271 11,561 12,036 20,377 23,597 Gross income 10,227 10,708 11,067 11,364 12,438 12,367 20,936 24,805 Operating expenses (4,068) (4,138) (4,266) (4,671) (4,397) (4,355) (8,207) (8,752) Net ope
Slide 68: Mexico
Mexico € million 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 1H '16 1H '17 NII + Fee income 767 768 767 794 804 856 1,536 1,660 Gross income 792 786 796 828 824 914 1,578 1,738 Operating expenses (322) (317) (311) (325) (319) (361) (639) (680) Net operating income 470 469 486 503 505 553 939 1,058 Net loan-
Slide 69: Mexico (pesos million)
Mexico Pesos million 1Q16 2Q16 3Q16 4Q 16 1Q17 2Q17 NII + Fee income 15,253 15,690 16,028 16,922 17,348 17,505 Gross income 15,745 16,054 16,647 17,645 17,779 18,706 Operating expenses (6,402) (6,479) (6,497) (6,922) (6,894) (7,386) Net operating income 9,343 9,576 10,151 10,723 10,886 11,320 Net lo
Slide 70: Chile
Chile € million 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 1H '16 1H '17 NII + Fee income 509 534 561 613 592 589 1,043 1,181 Gross income 556 577 616 672 645 644 1,133 1,288 Operating expenses (235) (237) (249) (265) (264) (260) (472) (524) Net operating income 321 339 368 407 381 383 661 765 Net loan-los
Slide 71: Chile (Ch$ billion)
Chile Ch$ billion 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 1H '16 1H '17 NII + Fee income 393 409 414 441 413 430 802 843 Gross income 430 441 455 484 450 470 871 920 Operating expenses (182) (182) (184) (191) (184) (190) (363) (374) Net operating income 248 260 272 293 266 280 508 546 Net loan-loss prov
Slide 72: United States
United States € million 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 1H '16 1H '17 NII + Fee income 1,831 1,755 1,724 1,708 1,763 1,738 3,587 3,500 Gross income 1,968 1,888 1,867 1,809 1,879 1,880 3,856 3,759 Operating expenses (777) (774) (784) (864) (837) (845) (1,551) (1,682) Net operating income 1,191 1,
Slide 73: United States ($ million)
United States $ million 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 1H '16 1H '17 NII + Fee income 2,018 1,983 1,925 1,838 1,877 1,912 4,001 3,788 Gross income 2,168 2,133 2,085 1,945 2,001 2,068 4,302 4,069 Operating expenses (856) (874) (875) (932) (891) (929) (1,730) (1,821) Net operating income 1,312 1,
Slide 74: Corporate Centre
Corporate Centre € million 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 1H '16 1H '17 NII + Fee income (173) (192) (201) (204) (198) (223) (366) (421) Gross income (223) (244) (316) (282) (341) (340) (468) (681) Operating expenses (126) (120) (104) (99) (119) (118) (246) (238) Net operating income (349) (365
Slide 75: Banco Popular (P&L and balance sheet)
Banco Popular (P&L and balance sheet) 75
Slide 76: Popular income statement in Grupo Santander
Popular income statement in Grupo Santander* € million 2Q 17 Net interest income 109 Net fee income 31 Gains (losses) on financial transactions (1) Other operating income 0 Gross income 139 Operating expenses (96) General administrative expenses (87) Personnel (45) Other general administrative expen
Slide 77: Popular Balance sheet - 30 June 2017
Popular Balance sheet - 30 June 2017 € million Customer loans 82,589 Cash, central banks and credit institutions 12,538 Debt securities 19,394 o/w: available for sale 17,929 Other financial assets 1,971 Other assets 15,224 Total assets 131,716 Customer deposits 64,814 Central banks and credit instit
Slide 78: Income statement Grupo Santander (with Popular)
Income statement Grupo Santander (with Popular)
Slide 79: Grupo Santander (including Popular)
Grupo Santander (including Popular) € million 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 1H '16 1H '17 NII + Fee income 10,021 10,119 10,395 10,734 11,246 11,522 20,140 22,768 Gross income 10,730 10,755 11,080 11,288 12,029 12,049 21,485 24,078 Operating expenses (5,158) (5,227) (5,250) (5,453) (5,543) (5,
Slide 80: Grupo Santander (including Popular), constant euros
Grupo Santander (including Popular) Constant € million 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 1H '16 1H '17 NII + Fee income 10,508 10,496 10,618 10,876 11,127 11,641 21,004 22,768 Gross income 11,217 11,150 11,323 11,424 11,900 12,178 22,367 24,078 Operating expenses (5,330) (5,363) (5,344) (5,519) (5
Slide 81: Content
Content Banco Popular acquisition Group performance 1H'17 Business areas performance 1H'17 Concluding remarks Appendix Glossary
Slide 82: Glossary - Acronyms
Glossary - Acronyms AFS: Available for sale P&L: Profit and loss Bn: Billion RoRWA: Return on risk-weighted assets CET1: Common equity tier 1 RWA: Risk-weighted assets C&I: Commercial and Industrial RoTE: Return on tangible equity DGF: Deposit guarantee fund SCF: Santander Consumer Finance FL: Fully
Slide 83: 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 84: Thank you
Thank you Our purpose is to help people and businesses prosper. Our culture is based on the belief that everything we do should be