Banco Santander S A : Analyst presentations - 2019 results

29 January 2020

2019 Earnings Presentation

Ana Botín

Group Executive Chairman

José Antonio Álvarez

Group CEO

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 constitute alternative performance measures ("APMs") as defined in the Guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority (ESMA) on 5 October 2015 (ESMA/2015/1415en) and other non-IFRS measures ("Non-IFRS Measures"). The financial measures contained in this presentation that qualify as APMs and non-IFRS measures have been calculated using the financial information from Santander Group but are not defined or detailed in the applicable financial reporting framework and have neither been audited nor reviewed by our auditors. We use these APMs and non-IFRS measures when planning, monitoring and evaluating our performance. We consider these APMs and non- IFRS measures to be useful metrics for management and investors to facilitate operating performance comparisons from period to period. While we believe that these APMs and non-IFRS measures are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant as a substitute of IFRS measures. In addition, other companies, including companies in our industry, may calculate or use such measures differently, which reduces their usefulness as comparative measures. For further details of the APMs and Non-IFRS Measures used, including its definition or a reconciliation between any applicable management indicators and the financial data presented in the consolidated financial statements prepared under IFRS, please see the 2018 Annual Financial Report, filed with the Comisión Nacional del Mercado de Valores of Spain (CNMV) on 28 February 2019, as well as the section "Alternative performance measures" of the annex to the Banco Santander, S.A. ("Santander") 2019 4Q Financial Report, published as Relevant Fact on 29 January 2020. These documents are available on Santander's website (www.santander.com).

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, the results of operations and trends shown for our geographic segments may differ materially from those of such subsidiaries

Forward-looking statements

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 "expect", "project", "anticipate", "should", "intend", "probability", "risk", "VaR", "RoRAC", "RoRWA", "TNAV", "target", "goal", "objective", "estimate", "future" and similar expressions. These forward-looking statements are found in various places throughout this presentation and include, without limitation, statements concerning our future business development and economic performance and our shareholder remuneration policy. While these forward-looking statements represent our judgment and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. The following important factors, in addition to those discussed elsewhere in this presentation, could affect our future results and could cause outcomes to differ materially from those anticipated in any forward-looking statement: (1) general economic or industry conditions in areas in which we have significant business activities or investments, including a worsening of the economic environment, increasing in the volatility of the capital markets, inflation or deflation, and changes in demographics, consumer spending, investment or saving habits; (2) exposure to various types of market risks, principally including interest rate risk, foreign exchange rate risk, equity price risk and risks associated with the replacement of benchmark indices; (3) potential losses associated with prepayment of our loan and investment portfolio, declines in the value of collateral securing our loan portfolio, and counterparty risk; (4) political stability in Spain, the UK, other European countries, Latin America and the US (5) changes in laws, regulations or taxes, including changes in regulatory capital and liquidity requirements, including as a result of the UK exiting the European Union and increased regulation in light of the global financial crisis; (6) our ability to integrate successfully our acquisitions and the challenges inherent in diverting management's focus and resources from other strategic opportunities and from operational matters while we integrate these acquisitions; and (7) changes in our ability to access liquidity and funding on acceptable terms, including as a result of changes in our credit spreads or a downgrade in our credit ratings or those of our more significant subsidiaries. Numerous factors could affect the future results of Santander and could result in those results deviating materially from those anticipated in the forward-looking statements. Other unknown or unpredictable factors could cause actual results to differ materially from those in the forward-looking statements.

2

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 revise any forward-looking statement, whether as a result of new information, future events or otherwise.

No offer

The information contained in this presentation is subject to, and must be read in conjunction with, all other publicly available information, including, where relevant any fuller disclosure document published by Santander. Any person at any time acquiring securities must do so only on the basis of such person's own judgment as to the merits or the suitability of the securities for its purpose and only on such information as is contained in such public information having taken all such professional or other advice as it considers necessary or appropriate in the circumstances and not in reliance on the information contained in this presentation. No investment activity should be undertaken on the basis of the information contained in this presentation. In making this presentation available Santander gives no advice and makes no recommendation to buy, sell or otherwise deal in shares in Santander or in any other securities or investments whatsoever.

Neither this presentation nor any of the information contained therein constitutes an offer to sell or the solicitation of an offer to buy any securities. No offering of securities shall be made in the United States except pursuant to registration under the U.S. Securities Act of 1933, as amended, or an exemption therefrom. Nothing contained in this presentation is intended to constitute an invitation or inducement to engage in investment activity for the purposes of the prohibition on financial promotion in the U.K. Financial Services and Markets Act 2000.

Historical performance is not indicative of future results

Statements as to historical performance or financial accretion are not intended to mean that future performance, share price or future earnings (including earnings per share) for any period will necessarily match or exceed those of any prior period. Nothing in this presentation should be construed as a profit forecast.

Third Party Information

In particular, regarding the data provided by third parties, neither Santander, nor any of its administrators, directors or employees, either explicitly or implicitly, guarantees that these contents are exact, accurate, comprehensive or complete, nor are they obliged to keep them updated, nor to correct them in the case that any deficiency, error or omission were to be detected. Moreover, in reproducing these contents in by any means, Santander may introduce any changes it deems suitable, may omit partially or completely any of the elements of this presentation, and in case of any deviation between such a version and this one, Santander assumes no liability for any discrepancy.

3

Index

1 2 3 4

Growth	Group &	Our business	Key takeaways
Profitability	Business	model delivers
Strength:	areas review	profitable
performance		growth
in 2019

Delivering Growth, Profitability and Strength in a responsible way

2019 (vs. 2018)
Growth	Profitability		Strength
Loyal customers		Underlying RoTE		FL CET1
21.6 mn (+9%)		11.8 % (-29 bps)		11.65 % (+35 bps)

Customer revenues		Underlying RoRWA		NPL ratio
€47.1 bn (+4%1)		1.61% (+5bps2)		3.3 % (-41 bps)

Proposed3 increasing cash DPS to €20 cents (c.+3% YoY) and total 2019 DPS of €23 cents

1. In constant €

(2)	Excluding RWA inflation coming from TRIM and other regulatory impacts, otherwise +2bps increase	5
(3)	Board intends to propose to the 2020 AGM that the total payment of the remuneration against 2019 results will be 0.23 euros per share split in (1) a dividend in cash of 0.20 euros per share and (2) a
	scrip dividend that will entail the payment in cash, for those shareholders who so choose, of 0.03 euros per share

Profitable growth and solid organic capital generation…

		Change vs. 2018
EUR mn	2019	%	% constant €
Net interest income	35,283	3	4
Net fee income	11,779	3	5
Customer revenue	47,062	3	4
Trading and other income	2,432	-6	-8
Total income	49,494	2	3
Operating expenses	-23,280	2	3
Net operating income	26,214	2	3
Loan-loss provisions	-9,321	5	5
Other results	-1,964	-2	0
Underlying PBT	14,929	1	2
Underlying attributable profit	8,252	2	3
Attributable profit	6,515	-17	-16

All-time record year in revenues

Underlying profit growth

+5%1 in 4Q'19 vs. 4Q'18

Strong organic capital generation: CET1 at 11.65% and increasing cash DPS

Note: Net capital gains and provisions amount to -€1,737mn in 2019; Details on slide 47 (appendix)	6
(1) In constant €

…supported by a disciplined execution against our strategic priorities

Improve operating performance

Simplified regional

management structure

Europe c.€200mn1 cost reduction

(20% of c.€1bn plan)

Popular integration

successfully concluded

Optimise capital allocation

Mexico minorities acquisition

High return businesses investments

(eg. Insurance, acquiring, etc.)

Custody business partnership and Puerto Rico retail bank disposal2

Accelerate digitalisation through SGP

Santander Global Platform creation

Ebury strategic partnership2

(base for Global Trade Services)

Openbank expansion in Europe

Building a Responsible Bank

Recognised as the most sustainable bank in the world by Dow Jones Sustainability Index in 2019

(1)	Adjusted by perimeter effects	7
(2)	Transaction closing expected in mid-2020 subject to regulatory approvals

Strong operating performance across our regions…

Growth

	Loyal		Underlying
20191 (vs. 2018)	customers	Loans	profit	RoTE
(mn)	(EUR bn)	(EUR mn)	(%)
Europe	9.9	651	4,878	10%		Stable revenues and executing
+6%	+2%	-3%	-86bps		cost synergy opportunities

North	3.5	131	1,667	13%2	Improving capabilities and
America	+22%	+10%	+21%	+112bps	high operational leverage

South	7.9	131	3,924	21%	Double-digit earnings
America	+7%	+9%	+18%	+179bps	growth and returns

(1)	YoY change in constant euros. Loans excluding reverse repos. Underlying RoTE	8
(2)	Adjusted for excess of capital in the US. Otherwise 9%

…with Global Businesses driving network effects and contributing 26% of Group's earnings

Growth

Corporate &

SCIB Investment Banking

Underlying €1.8bn +10% profit

RoRWA

1.8% +18 bps

Customer-centric& capital-lightmodel

Wealth Management WM&I & Insurance

Underlying €1.0bn +11% profit

RoRWA

8.9% +1 p.p.

Closing the gap to

our natural market share

Santander Global SGP Platform

International SMEs / GTS

1+40%

Revenues CAGR2

Individuals - Mass market

640k

active

customers

+59% YoY

Note: variations on a YoY basis; in constant €	9
(1)	Transaction closing expected in mid-2020 subject to regulatory approvals
(2)	Net revenues CAGR Fiscal Year 2015-2016 to Fiscal Year 2018-2019

Returns on digitalisation and SGP supporting exponential growth of	Growth
mobile channel and fueling engagement and digital sales

More digital customers…

+15%

37

32

2018 2019

Digital customers1 (mn)

…engaging and transacting

more through mobile…

5

"Touchpoints" per digital

customer per week

2x

Increase in mobile

sales vs 2018

…resulting in increased

digital sales

+4p.p.

36

32

20182 2019

Digital sales3 as %

of total sales

(1)	Every physical or legal person, that, being part of a commercial bank, has logged in its personal area of internet banking or mobile phone or both in the last 30 days	10
(2)	Figure in December 2018
(3)	Percentage of new contracts executed through digital channels during the period

Increasing digital sales improve profitability as a result of lower unit costs

Digital vs. branch channel: unit cost comparison examples

Growth

Serving our customers…

transfer	- 99%
Cost of money

payments	- 99%
Cost of bill

(1) Latest available estimate (2018)

…and delivering our products

more efficiently

a mortgage	- 50%1
Cost of selling

an account	- 72%
Cost of opening

11

Improved operating performance and optimised capital allocation resulted in additional c.€20 bn RWAs above CoE in 2019…

Profitability

Underlying RoRWA

2018

Europe11.59%

North America

1.74%

South America

3.37%

2019

1.61%

1.90%

3.45%

+5bps1

annual increase in

Group RoRWA

10%

Reduction in RWAs with returns below CoE2

(1)	Excluding RWA inflation in 2019 coming from TRIM and other regulatory impacts, otherwise Europe RoRWA 1.58% and increase in Group RoRWA +2bps in 2019	12
(2)	The weight in total RWAs of RWAs with a RoRWA below 1.2% has gone down from 30% in 2018 to 27% in 2019

…by continuing with an accretive capital rebalancing

More capital allocated… …to regions with higher returns

Profitability

RWA YoY change in constant euros	2019 underlying RoTE		>70%
		10%
Europe -1%				of our capital delivered

double digit returns

North

America

South

America

			13%1	>30%
		+4%
			+7%		21%	of our capital delivered
				a >20% RoTE

(1) Adjusted for excess of capital in the US. Otherwise 9%	13

2019 a record-high year in terms of gross capital generation, partially offset by regulatory headwinds

Strength

FL CET1 2019					2019 capital		€9.4bn
					generation
		+35bps			pre-minorities2,3
	+97 bps	12.27%			CET1		€3.6bn
					accumulation
				11.65%			€4.3bn
11.30%			-62 bps		Dividends3
2018	Gross capital	2019 (excluding	Regulatory	2019	RWA growth	4	€1.5bn
	generation	headwinds)	headwinds 1

(1)	Impacts: 19bps IFRS16; 43 bps TRIM & others	14
(2)	Not considering other elements in the CET1 YoY change: OCI, cost of FX hedges, AT1 coupons, etc.
(3)	Including dividends paid to minorities by subsidiaries, otherwise dividends 3.4Bn and total capital generation €8.5bn
(4)	Capital consumption coming from RWA inflation

Expect our CET1 reach c.12% by end-2020 based on continued profitability improvement

FL CET1 Jan 2015-2020

+200 bps	11.65%	c.+40 bps	c.12%

9.65%					5 Year
				run-rate
	+40bps
		per annum

Jan-15	5 Yr net capital accumulation	2019	2020 net capital	2020
			accumulation

Strength

15

Delivery on our GPS1 targets has resulted in +8% increase in tangible book value and cash dividend on a per share basis…

		+8%
			€0.165	€4.52
	€0.17	€4.36
€4.19
2018 TNAVps	TNAVps	2019 TNAVps	Cash DPS	2019

	YoY growth	declared in 20192	TNAVps + DPS
(1)	GPS: Growth, Profitability and Strength		16
(2)	Dividends declared in 2019 (4th 2018 dividend €6.5 cents and 1st 2019 dividend €10 cents)

…and we continue to do business in a more responsible and sustainable way

Culture				Sustainability
Engagement	Women			€18bn	€1bn
86% of employees	40% Group Board	Leader
proud to work for SAN	22% Group leadership			mobilised in Green	Santander first green
(+5pp vs peers1)			finance	bond issuance
	(+2pp vs. 2018)			(+7% vs. 2018)
Communities			Dow Jones	Financial inclusion
1.2mn	66k		index2	1.6mn	€277mn

people helped through our	scholarships granted	people financially	credit to
community programs			empowered	microentrepreneurs3
					(+73% vs. 2018)
	Note: figures as of 2019 (not audited yet) and changes on a YoY basis (2019 vs. 2018)		17
	(1)	Source: Mercer benchmark
	(2)	Dow Jones Sustainability index 2019
	(3)	Microentrepreneurs are already included in the people financially empowered metric

Index

1 2 3 4

Growth	Group &	Our business	Key takeaways
Profitability	Business	model delivers
Strength:	areas review	profitable
performance		growth
in 2019

Sound operating performance driving solid results in the year and vs Q4'18

% vs. 2018

EUR mn	2019	Euros	Constant
euros

Underlying attributable profit

Constant EUR mn

Net interest income	35,283	3	4
Net fee income	11,779	3	5
Customer revenue	47,062	3	4
Trading and other income	2,432	-6	-8
Total income	49,494	2	3
Operating expenses	-23,280	2	3
Net operating income	26,214	2	3

1.959 1.950

+5%

2.084

2.005

1.919

2.072

2.155

2.105

Loan-loss provisions	-9,321	5	5
Other results	-1,964	-2	0
Underlying PBT	14,929	1	2
Underlying attributable profit	8,252	2	3
Net capital gains and provisions1	-1,737	---	---
Attributable profit	6,515	-17	-16

Q1'18

Q2

Q3

Q4

Q1'19

Q2

Q3

Q4

++3839%

Attributable profit

1,959	1,650	2,084	2,050	1,768	1,369	552	2,827

(1) Details on slide 47(appendix)	19
Note: Contribution to the SRF (net of tax) recorded in Q2'18 (EUR -187 mn) and Q2'19 (EUR -162 mn). Contribution to the DGF in Spain (net of tax) in Q4'18 (EUR -158 mn) and Q4'19 (EUR -160 mn)

High quality revenue: customer revenues delivers 95% of the total and grew 4% YoY driven by the Americas and Global Businesses

Customer Revenue

(NII + Fees)

95%

Other Revenue

5%

Customer +4% Revenue

South America	+11%
North America	+4%
Europe	flat
C&IB	+9%
WM&I1	+6%

NII +4%

Volumes and spreads management

with 8 markets growing or flat

Fees +5%

Improved trend by global businesses,

amounting to 43% of total fees

WM&I1: 30% ; C&IB: 13%

Note: YoY change in constant euros	20
(1) Including fees generated by asset management and insurance transferred to the commercial network

We continue leveraging our scale and global capabilities to improve productivity and generate new efficiencies

YoY change in constant euros

Nominal costs

Europe-1.3%

North America

5.1%

South America1

4.6%

Group3.4%

Costs in real terms

-2.4%

2.6%

1.0%

-0.4%

-8%-3%-4%

2%

4%

1%

0%

Operating as

"One Europe"

Synergies as a region and joint investments

Regional revenues

and cost management

(1) Excluding Argentina due to high inflation. Included, South America: +10.2% nominal costs and 0.9% costs in real terms

21

Sound credit quality underpinned by lower NPL and high coverage ratios. Cost of credit remains at very low levels

Better credit quality ratios

2018 2019

Cost of credit

1.0%

1.0%

NPL ratio

3.73%

3.32%

Lower or stable cost of credit in 8 core markets

NPL ratio fell YoY in most markets

Coverage ratio	67%	68%	High level of allowances to total loans

Note: Exposure and coverage ratio by stage in appendix, page 75 (Appendix)

22

Business areas review

23

Overall profit growth by regions and markets

2019 Underlying attributable profit

EUR mn and % change vs. 2018 in constant EUR

Europe

North

America

South

America

1.585

1.314

1.077

525

349

950

717

2.939

630

144

+2% +2% -16% +10% +19% +19% +24% +16% +7% +224%

47%

16%

37%

Well balanced Group profit by regions

Global	1.761
businesses	960

+10%

+11%

Enhancing our local scale

with global reach

Underlying profit weight excludes Corporate Centre (EUR -2,096 mn) and Santander Global Platform	24
South America weight includes Uruguay & Andean Region (EUR 213 mn)

Volume growth driven by the Americas and our consumer businesses

2019 Loans and advances to customers

EUR bn and % change vs. 2018 in constant EUR

2019 Customer funds

EUR bn and % change vs. 2018 in constant EUR

Europe

North

America

South

America

5

191

105

249

36

31

96

35

80

40

-6%

+7%

+4% -1% +5%

+12%

+5%

+8%

+8%

+40%

Europe

North

America

South

America

309	+3%
40	+8%
219	+2%
42	+8%
38	+6%
73	+11%
41	0%
122	+12%
35	+12%
8	+24%

Group

+4%

Group

+6%

Note: Loans and advances to customers excluding reverse repos. Customer funds: deposits excluding repos + marketed mutual funds

25

Spain

KEY DATA	2019	% 2018
Loyal / active customers (%)	32	+2 pp
Digital customers (mn)	4.7	+10%
NPL ratio (%)	6.94	-38 bps
Cost of credit (%)	0.43	+5 bps
Efficiency ratio (%)	53.6	-340 bps
RoTE (%)	10.5	+6 bps

Successful integration of Banco Popular

Sustained progress in our digital strategy reaching 60% digital/active customers and +41% YoY in accesses

Continue boosting our SME and Corporate segment leveraging our international business (+15% YoY)

Note: underlying RoTE

Europe

main markets

	P&L*	Q4'19	% Q3'19	2019	% 2018
	NII	934	-3.4	3,919	-4.3	-2%
	Net fee income	620	0.9	2,481	-5.5
	Total income	1,811	-8.9	7,506	-1.4
						-6%
	Operating expenses	-977	-2.1	-4,021	-7.3
	LLPs	-176	-15.9	-856	8.5
	PBT	557	-18.1	2,174	5.4
	Underlying att. profit	400	-18.5	1,585	2.0	+4%
	(*) EUR mn	Changes excluding IFRS 16 impact

Active margin management, reflected in YoY customer NII growth, offset by lower ALCO volumes and IFRS 16 impact

Fee income down due to lower activity at SCIB and the move toward more conservative mutual funds

Continued delivery in costs (EUR -317mn). Trend to be maintained in 2020

26

SCF SCF
KEY DATA	2019	% 2018
Active customers (mn)	19.3	-
NPL ratio (%)	2.30	+1 bps
Cost of credit (%)	0.48	+10 bps
Efficiency ratio (%)	43.3	+14 bps
RoTE (%)	15.3	-57 bps

			Europe
			main markets
P&L*	Q4'19	% Q3'19	2019	% 2018
NII	960	-1.3	3,848	3.9
Net fee income	195	-8.2	823	3.2
Total income	1,185	-1.3	4,710	2.6
Operating expenses	-499	-0.8	-2,038	2.9
LLPs	-148	1.2	-477	32.4
PBT	504	-14.9	2,215	4.2
Underlying att. profit	319	-5.3	1,314	2.2
(*) EUR mn and % change in constant euros

Market share gains in auto finance. New lending +5% YoY, significantly higher than new car sales in Europe

Reinforce leadership with 2 new strategic agreements1

and best-in-class profitability (RoRWA: 2.3%)

Note: underlying RoTE

(1) Hyundai Kia in Germany and Ford Motor Company in the Nordics

PBT +4% YoY (volumes) with costs rising at a slower pace than business growth, due to efficiency projects

LLPs up due to increased volumes, change of product-mix (Spain) and lower bad debt sales (Nordics). Cost of credit at historic lows

27

UK

KEY DATA	2019	% 2018
Loyal / active customers (%)	32	+2 pp
Digital customers (mn)	5.8	+6%
NPL ratio (%)	1.01	-7 bps
Cost of credit (%)	0.10	+3 bps
Efficiency ratio (%)	60.0	+470 bps
RoTE (%)	7.3	-205 bps

			Europe
			main markets
P&L*	Q4'19	% Q3'19	2019	% 2018
NII	961	0.8	3,788	-7.9
Net fee income	226	-0.5	866	-5.9
Total income	1,220	3.8	4,727	-8.7
Operating expenses	-712	-0.5	-2,835	-0.9
LLPs	-96	21.7	-253	46.2
PBT	345	2.8	1,455	-20.0
Underlying att. profit	249	-4.0	1,077	-16.0
(*) EUR mn and % change in constant euros

Strongest net mortgage growth in a decade; as well as

robust customer deposits increases across the business

Delivering on our multi-year transformation programme to improve future returns

Note: underlying RoTE

NII impacted by competitive pressures (spreads, mortgages and SVR attrition); fees by investments and overdrafts (regulatory changes)

Costs down with delivery on transformation plan efficiency savings

(-2.7% in real terms) and asset quality remains very good

28

Mexico

KEY DATA	2019	% 2018
Loyal / active customers (%)	33	+4 pp
Digital customers (mn)	4.2	+45%
Efficiency ratio (%)	41.8	+15 bps
Underlying profit (EUR mn)	950	+19%
RoTE (%)	20.6	+37 bps

Enhanced our distribution and attention model reflected in strong customer growth

c.21% RoTE supported by double-digit profit growth

(customer revenue & large credit quality improvement) Santander México stake at 91.65% (from 74.96%)

Note: underlying RoTE

1. Adjusted for excess capital. Otherwise 5%
2. Data as of September 2019

USA		North America
KEY DATA	2019	% 2018
Loyal / active customers (%)	19	-
Digital customers (ks)	1,010	+6%
Efficiency ratio (%)	43.3	-10 bps
Underlying profit (EUR mn)	717	+24%
RoTE (%)1	8.7	+111 bps

Better customer experience and deeper relationships driving above market volume growth2

SBNA and SC USA collaboration in prime auto finance has originated ~USD 7 bn in 2019

Revenue growth and improvement in asset quality resulting in excellent YoY profit growth

29

Brazil

KEY DATA	2019	% 2018
Loyal / active customers (%)	22	-
Digital customers (mn)	13.5	+18%
NPL ratio (%)	5.32	+7 bps
Cost of credit (%)	3.93	-13 bps
Efficiency ratio (%)	33.0	-71 bps
RoTE (%)	21.2	+147 bps

			South America
			main market
P&L*	Q4'19	% Q3'19	2019	% 2018
NII	2,534	2.3	10,072	6.0
Net fee income	974	3.7	3,798	11.5
Total income	3,565	4.5	13,951	7.4
Operating expenses	-1,242	12.6	-4,606	5.1
LLPs	-813	11.3	-3,036	5.2
PBT	1,305	-6.9	5,606	11.0
Underlying att. profit	689	-6.8	2,939	16.4
(*) EUR mn and % change in constant euros

Successful strategy focused on customer service, combined with an effective and profitable model

Selective market share gains with solid increases

(loans to individual, consumer finance & demand deposits)

Profitability increased in the year (RoTE of 21%) due to higher revenue (volumes and fee income with some margin pressure)

Efficiency and cost of credit ratios improvement

Note: underlying RoTE

30

Index

1 2 3 4

Growth	Group &	Our business	Key takeaways
Profitability	Business	model delivers
Strength:	areas review	profitable
performance		growth
in 2019

Our purpose

To help people and businesses prosper

Our aim as a bank

To be the best open

financial services platform, by acting responsibly and earning the lasting loyalty of our people, customers, shareholders and communities

Our how

Everything we do should be

Simple, Personal and Fair

32

Our business model based on Scale, Customer Focus and Diversification drives predictable and profitable growth

Scale

c.145 mn

total customers in Europe

and the Americas

Top 3 bank2

in 9 markets

Customer Focus

Top 3	in NPS1 in 6
countries

+72% Loyal customers 2014 - 2019

Diversification

2019 underlying attributable profit by region3

South America	North America
	16%
37%

47%

Europe

(1)	Customer Satisfaction internal benchmark of active customers audited by Stiga / Deloitte	33
(2)	Market share in lending as of 3Q19 including only private owned banks. UK benchmark covers mortgage market
(3)	Operating areas excluding Corporate Centre and SGP

Disciplined execution has delivered predictable and profitable growth since 2014

Strong performance in the last 5 years…	…supported by
investments

Growth		Profitability		Strength
EPS1	+22%		RoTE +84 bps		FL CET1 +€22 bn3
TNAVps2	+19%		RoRWA +34 bps

while increasing 2.3x Cash DPS4

>€2bn

Transformation charges

€5bn

Investment in digital and technology p.a.

(1)	In constant €; Adjusting for share count increase coming from scrip dividends;
(2)	Adjusting for share count increase coming from scrip dividends	34
(3)	FL CET1 (€mn) accumulated since 2014; Including January 2015 ABB (€7.5bn)

1. €20 cents cash dividend in 2019 compared to €8.6 cents in 2014 (coming from the cash take-up of the 2014 €60 cents scrip dividend) - Board intends to propose to the 2020 AGM that the total payment of the remuneration against 2019 results will be 0.23 euros per share, out of which 0.20 euros per share will be paid in cash

Our business model and track record support delivery of our mid-term

goals		'19 Investor Day
	2019	Mid-term goals
Loyal customers1	22mn	c.26mn
Digital customers2	37mn	c.50mn
Digital sales3	36%	>50%
C/I	47%	42-45%
FL CET1	11.65%	11-12%
Underlying RoTE	11.8%	13-15%
Underlying RoRWA	1.61%	1.8-2.0%
Pay-out	40-50%	40-50%

High-single digit EPS

3Y-CAGR4

(1)	Active customer who receive most of their financial services from the Group according to the commercial segment that they belong to.	35
(2)	Every physical or legal person, that, being part of a commercial bank, has logged in its personal area of internet banking or mobile phone or both in the last 30 days.
(3)	The percentage of new business carried out through digital channels in the period
(4)	2019-22 underlying EPS CAGR

Execution of our three-pillar plan to drive profitable growth in a responsible way

Improve operating	Optimise capital	Accelerate
performance	allocation	digitalisation

through Santander Global Platform

Continue building a more Responsible Bank

36

Improving operating performance leveraging One Santander

Operating

performance

Underlying

RoTE

Efficiency

Europe

2019	Mid-term goal
10%	12-14%
53%	47-49%

Building one European banking platform, with enhanced profitability

1. Adjusted for excess of capital in the US. Otherwise 9%.
2. Adjusted for excess of capital in the US

North America

South America

2019	Mid-term goal	2019	Mid-term goal
13%1	14-16%2	21%	20-22%
43%	39-41%	36%	33-35%
Investing together to	Natural reweighting
improve commercial	and high profitable
capabilities	growth opportunity

37

Ongoing capital allocation optimisation to improve profitability

Capital

allocation

Rebalancing to more profitable regions and businesses

Improved pricing, processes and governance

Active management and senior team alignment

Strong profitability improvement leading

to higher capital generation capacity

1.8-2.0%

			1.6%
	1.3%
Group
RoRWA1
2014	2019	Mid-term
							goal

(1) Underlying RoRWA	38

Accelerating digitalisation and building Santander Global Platform

Digitalisation

& SGP

Accelerate the

transformation

of our 'core

Banks'

Provide faster

andbetter global

payments and

solutions

Moving towards ONE SANTANDER to build simpler,faster and better services

39

Best-in-class Global payments and digital banking solutions to SMEs and Individuals

Digitalisation

& SGP

Focused on relevant global markets…

• building on relevant assets to accelerate growth

Santander Global Platform	1

SMEsIndividuals

2

Global	Global	Banking	Global
Merchant	Trade	without	Digital
Services	Services	a bank	Banking

3

1

4

Digital payment services as a driver of customer engagement and loyalty

Built with global platforms, leveraging our scale for efficiency and customer experience

Offered to both our banks (B2C) and to third parties (B2B2C)

Run autonomously, with a blend of tech and banking talent

(1) 50.1% stake; Transaction closing expected in mid-2020	40
subject to regulatory approvals

Bringing best-in-class Global payments solutions to SMEs

								Digitalisation
	Global Merchant Services			Global Trade Services	& SGP
	Leveraging Getnet to build Global Merchant Services			One global platform to serve international SMEs
					High growth
	€42bn	c.7%		$200bn	>200k
	and large
	Revenue pool for global	Expected revenue	addressable		Revenue pool for Global	SAN SME customers
	merchant services1	pool CAGR2	market…		Transaction Banking services	trading internationally
						3
	High engagement	High growth	…with engaging		High engagement	High growth
	2x	+30%		propositions	+20%	+45%
		showing high
	Market share	2013-2019 transaction	growth..		2017-2019 transactions	Revenue growth YoY
	in Brazil in 5 years	volume CAGR			per customer CAGR
					… and ambitious
	Scaling from 1 to 8 markets		Scale to serve over 20 markets
	mid-term goals
		(1) EMEA + Americas revenue pools in merchant acquiring services incl. Net MDR & rental terminals			41
	(2)	CAGR 2018-2023
		(3) 50.1% stake; Transaction closing expected in mid-2020 subject to regulatory approvals

Offering fully digital banking solutions to individuals

	Digitalisation
Financial inclusion platform to cost-	& SGP
Our global, full-service digital bank
effectively serve the bottom of the pyramid

>300mn	c.60mn
Underserved1	Middle class2 expansion
population in LatAm	by 2030 (+20%)

High engagement	High growth
1.8x	+105%
Transactions growth over	Annual
customers3 growth	transaction growth

Targeting >5mn active customers in 7 markets

High growth

and large

addressable

market…

…with engaging

propositions showing high growth..

• and ambitious mid-term goals

1bn	68%
Population in the	Of total assets in Europe
markets the Group operates	held in current accounts

High engagement	High growth
4.4	+134%
Average products	Mortgage sales
per loyal customer	growth over last 12m

Scale from 4 to 10 markets in Europe and Americas

1. Including 200mn+ unbanked and 100mn+ underbanked
2. USD $10-50 per capita daily income (PPP); Source: Interamerican Development Bank, 2016
3. Active customers (30 days)

42

Index

1 2 3 4

Growth	Group &	Our business	Key takeaways
Profitability	Business	model delivers
Strength:	areas review	profitable
performance		growth
in 2019

Key takeaways

In 2019 we have delivered

Growth:

• All-time record year in revenues of €49bn (+3%2)
• High growth in customers: loyal (+9%) and digital (+15%)

Profitability:

• Underlying RoTE at 11.8% and underlying RoRWA at 1.61% (+5bps3)
• Underlying quarterly profit growth (+5%2 YoY in Q4)

Strength:

• Strong capital generation, closing FL CET1 at 11.65%
• Very comfortable with capital level and buffers over regulatory requirements

Increase cash DPS to €20 cents (c.+3% YoY)

and total

2019 DPS of €23 cents1

Targeting high-single digit EPS CAGR over the next 3 years

(1)	Board intends to propose to the 2020 AGM that the total payment of the remuneration against 2019 results will be 0.23 euros per share split in (1) a dividend in cash of 0.20 euros per share and (2) a
	scrip dividend that will entail the payment in cash, for those shareholders who so choose, of 0.03 euros per share	44
(2)	In constant €
(3)	Excluding RWA inflation coming from TRIM and other regulatory impacts, otherwise +2bps increase

Appendix

45

Appendix

Net capital gains and provisions

Primary segments

Global businesses

Other countries. Detail

Balance sheet and capital management

Yield on loans and cost of deposits

NPL and coverage ratios and cost of credit

Responsible Banking

Quarterly income statements

46

Net capital gains and provisions

Q1'19

Capital gains Prisma (Argentina)	+150
Restructuring costs (-66UK; -12Poland)	-78
Property sales (Corporate Centre)	-180
Group total	-108
Q2'19
Restructuring costs (-600Spain; -26UK)	-626
PPI1 (UK)	-80
Group total	-706
Q3'19
PPI1 (UK)	-103
Restructuring costs (-12 UK; -8 Poland)	-20
FX impact in Prisma trading gains	-20
Subtotal (impacting capital)	-143
UK goodwill (Corporate Centre)	-1,491
Group total	-1,634

Q4'19
Custody sale (net)	+693
Tax reform in Brazil	+551
Real estate (net)	-225
Restructuring costs	-140
(-90 Brazil; -23 UK; -16 SCF; -8 USA; -3 Poland)
Intangibles and others	-168
Group total	+711

-1,737

FY19

(1) PPI: Payment protection insurance	47
Note: Data in EUR mn

Appendix

Net capital gains and provisions

Primary segments

Global businesses

Other countries. Detail

Balance sheet and capital management

Yield on loans and cost of deposits

NPL and coverage ratios and cost of credit

Responsible Banking

Quarterly income statements

48

EUROPE

KEY DATA	2019	% 2018
Loyal / active customers (%)	36	+3 pp
Digital customers (mn)	13.8	+9%
NPL ratio (%)	3.25	-42 bps
Cost of credit (%)	0.28	+4 bps
Efficiency ratio (%)	52.6	+6 bps
RoTE (%)	10.0	-86 bps

Extracting additional synergies from the integration and transformation processes

Cross-borderapproach: simplifying our business model and adapting our technology platforms

Leveraging digital transformation to improve

customer experience

Note: underlying RoTE

P&L*	Q4'19	% Q3'19	2019	% 2018
NII	3,531	-1.2	14,201	-0.1
Net fee income	1,319	-0.2	5,260	-3.3
Total income	5,292	-1.1	21,001	-1.3
Operating expenses	-2,733	-0.7	-11,044	-1.3
LLPs	-498	-0.1	-1,839	16.9
PBT	1,852	-5.9	7,350	-1.9
Underlying att. profit	1,238	-4.7	4,878	-3.4
(*) EUR mn and % change in constant euros

Resilient revenue in a very low interest rate environment

Costs decreased 2.4% in real terms reflecting the first savings

from our optimisation processes, especially in Spain

Cost of credit remained at very low levels (0.28%) despite higher provisions

49

NORTH AMERICA

KEY DATA	2019	% 2018
Loyal / active customers (%)	31	+4 pp
Digital customers (mn)	5.2	+35%
NPL ratio (%)	2.20	-59 bps
Cost of credit (%)	2.76	-36 bps
Efficiency ratio (%)	42.8	-3 bps
RoTE (%)1	13.0	+112 bps

P&L*	Q4'19	% Q3'19	2019	% 2018
NII	2,265	-0.4	8,926	3.9
Net fee income	427	-5.5	1,776	4.4
Total income	2,949	-1.9	11,604	5.1
Operating expenses	-1,314	3.0	-4,968	5.1
LLPs	-1,050	3.4	-3,656	0.6
PBT	554	-12.7	2,776	12.8
Underlying att. profit	389	-0.7	1,667	21.3
(*) EUR mn and % change in constant euros

Capturing new opportunities and developing the USMX trade corridor where revenue grew (SCIB: +41%; Corporate: +23%)

Cooperation between the Technology, HR, Legal and Audit areas to align policies and streamline operations

Increased profitability supported by double-digit profit growth

Higher customer revenue (volumes) with better asset quality

(NPL and cost of credit). Costs reflect Mexico's investment plan

Note: underlying RoTE	50
(1) RoTE adjusted for excess capital. Otherwise 9%

SOUTH AMERICA

KEY DATA	2019	% 2018
Loyal / active customers (%)	26	-
Digital customers (mn)	17.3	+15%
NPL ratio (%)	4.86	+6 bps
Cost of credit (%)	2.92	-8 bps
Efficiency ratio (%)	36.1	-98 bps
RoTE (%)	20.6	+179 bps

Centred on leveraging our products and services with strong expected medium-termgrowth

Focus on profitable growth and risk control, covering customer needs and exporting positive experiences

Note: underlying RoTE

P&L*	Q4'19	% Q3'19	2019	% 2018
NII	3,356	3.2	13,316	9.3
Net fee income	1,228	3.2	4,787	14.6
Total income	4,714	4.8	18,425	10.7
Operating expenses	-1,762	11.1	-6,656	10.2
LLPs	-1,015	12.3	-3,789	7.4
PBT	1,688	-7.3	7,232	12.2
Underlying att. profit	947	-3.8	3,924	18.4
(*) EUR mn and % change in constant euros

Improving profitability (RoTE c.21%) and double-digitprofit growth in all countries except Chile

Good performance in customer revenue boosted by higher volumes (9-13%) and efficiency ratio improvement

51

Corporate Centre

P&L*	2019	2018
NII	-1,252	-987
Gains/Losses on FT	-297	11
Operating expenses	-373	-426
LLPs and other provisions	-273	-216
Tax and minority interests	166	13
Underlying att. profit	-2,096	-1,686
(*) EUR mn

Higher loss in NII due to higher stock of issuances and IFRS 16 impact

FX hedging cost reflected in results from financial transactions

Operating expenses reflect the streamlining and simplification measures

52

Appendix

Net capital gains and provisions

Primary segments

Global businesses

Other countries. Detail

Balance sheet and capital management

Yield on loans and cost of deposits

NPL and coverage ratios and cost of credit

Responsible Banking

Quarterly income statements

53

Retail Banking

P&L*	Q4'19	% Q3'19	2019	% 2018	Activity
NII	8,296	0.1	33,157	3.3	EUR bn and % change YoY in constant euros

Net fee income	2,266	1.0	9,094	4.9
Total income	10,924	-1.1	43,523	3.8
Operating expenses	-4,969	2.9	-19,481	2.6
LLPs	-2,456	0.8	-9,154	7.4
PBT	3,042	-10.5	13,265	4.7
Underlying att. profit	1,886	-4.8	7,748	6.5
(*) EUR mn and % change in constant euros

783	712
+3%	+6%
Loans	Funds

74%	+9% YoY	+15% YoY
Weight of profit	Loyal	Digital
/ operating
customers	customers
areas

Continued focus on customer loyalty and digital transformation

We continued to launch new products and services that cover our customers' needs

54

Corporate & Investment Banking: +17% YoY collaboration revenues

	P&L*	Q4'19	% Q3'19	2019	% 2018	Total income
	NII	712	7.1	2,721	14.0	Constant EUR mn	4.920	+7%	5.284
	Net fee income	380	-9.1	1,528	1.0
			428
	Capital & Other	491	-13%
	Total income	1,443	15.0	5,284	7.4	1.578
	Global Markets	1.403	+12%
	Operating expenses	-606	9.4	-2,276	9.4	1.453
	Global Debt
	LLPs					1.377	+6%
	-127	--	-155	-23.0	Financing
	PBT	680	-2.8	2,767	8.9	Global Transaction	1.649	+11%	1.825
						Banking
	Underlying att. profit	425	-6.2	1,761	10.0	2018		2019
	(*) EUR mn and % change in constant euros

17%	1.8%	43.1%
Weight of profit
/ operating	RoRWA	Efficiency ratio
areas

YoY profit growth driven by value added businesses

We aim to continue to be strategic partners for our global customers…

• leveraging our strengths in LatAm and Europe

55

Wealth Management & Insurance: +20% YoY collaboration revenues3

	P&L*	Q4'19	% Q3'19	2019	% 2018
	NII	143	0.4	565	7.8
	Net fee income	328	9.8	1,201	5.2
	Total income	588	6.4	2,223	6.3
	Operating expenses	-234	4.8	-911	3.3
	LLPs	21	--	25	--
	PBT	371	14.6	1,325	11.0
	Underlying att. profit	263	9.5	960	11.1
	(*) EUR mn and % change in constant euros

9%	EUR 2,494 mn	+13% YoY
(+8% YoY)
Weight of profit	Total contribution	Insurance
/ operating
to Group's profit1	Gross Written
areas		Premiums

Activity

EUR bn and % change YoY in constant euros

Total AUM		395	+13%
Funds and investments2		240	+11%
- SAM		201	+11%
- Private Banking	66		+11%
Custody of customer funds	98		+22%
Customer deposits	57		+5%

Strategic initiatives focused on:

Global Private Banking platform and digital investments

Increasing market share in SAM and Insurance - complete value proposition

Note: Total assets marketed and/or managed
(1) Profit after tax + net fee income generated by this business	56
(2) Total adjusted for funds from private banking customers managed by SAM. Pro forma including asset management Popular's joint venture. The repurchase of the

remaining 60% of their stake is pending regulatory authorisations and other customary conditions

(3) Only Private banking

Appendix

Net capital gains and provisions

Primary segments

Global businesses

Other countries. Detail

Balance sheet and capital management

Yield on loans and cost of deposits

NPL and coverage ratios and cost of credit

Responsible Banking

Quarterly income statements

57

Portugal

KEY DATA	2019	% 2018
Loyal / active customers (%)	46	+1 pp
Digital customers (ks)	775	+6%
NPL ratio (%)	4.83	-111 bps
Cost of credit (%)	-0.02	-11 bps
Efficiency ratio (%)	45.3	-258 bps
RoTE (%)	12.8	+77 bps

Market shares in new lending to companies and mortgages at around 20%

The Bank maintained the best risk ratings by the rating agencies, aligned with or above the sovereign's

Note: underlying RoTE

Europe

other markets

P&L*	Q4'19	% Q3'19	2019	% 2018
NII	213	-0.4	856	-0.2
Net fee income	98	2.3	390	3.6
Total income	332	0.0	1,375	2.3
Operating expenses	-156	0.8	-623	-3.2
LLPs	-4	--	8	--
PBT	192	8.0	750	9.3
Underlying att. profit	140	11.7	525	9.6
(*) EUR mn

Underlying attributable profit increased 10% YoY due to improved efficiency and low cost of credit

NPL ratio <5%, sharply falling during the year (management of non-productive assets implemented following Popular acquisition)

58

Poland

KEY DATA	2019	% 2018
Loyal / active customers (%)	53	+1 pp
Digital customers (ks)	2,510	+14%
NPL ratio (%)	4.31	+3 bps
Cost of credit (%)	0.72	+7 bps
Efficiency ratio (%)	40.4	-261 bps
RoTE (%)1	19.6	+67 bps

Focus on achieving synergies and reducing cost of deposits following DB Polska acquisition

Named the best bank in Poland, with several awards in both traditional and online banking

Note: underlying RoTE

(1) RoTE adjusted for excess capital. Otherwise 11%

			Europe
			other markets
P&L*	Q4'19	% Q3'19	2019	% 2018
NII	307	2.3	1,171	18.6
Net fee income	117	-2.1	467	4.0
Total income	459	3.2	1,717	16.4
Operating expenses	-169	-3.7	-693	9.3
LLPs	-51	-15.3	-217	35.6
PBT	205	11.1	681	24.3
Underlying att. profit	104	9.2	349	18.9
(*) EUR mn and % change in constant euros

Double digit underlying profit growth reflecting acquisition as well as solid underlying trends, both in volumes terms and P&L

Cost control and efficiency improvement though results impacted by increased Banking Tax and BFG contributions

59

Mexico

KEY DATA	2019	% 2018
Loyal / active customers (%)	33	+4 pp
Digital customers (mn)	4.2	+45%
NPL ratio (%)	2.19	-24 bps
Cost of credit (%)	2.49	-26 bps
Efficiency ratio (%)	41.8	+15 bps
RoTE (%)	20.6	+37 bps

Enhanced our distribution and attention model

supported by our investment plan

Strong loyal and digital customer growth

Focus on selective loan growth (individuals and corporates) and cost of deposits management

Note: underlying RoTE

North America

P&L*	Q4'19	% Q3'19	2019	% 2018
NII	816	0.9	3,157	8.5
Net fee income	197	-7.6	829	4.2
Total income	1,054	3.5	3,998	7.7
Operating expenses	-445	4.7	-1,671	8.1
LLPs	-222	-1.8	-863	-1.3
PBT	395	8.3	1,459	13.2
Underlying att. profit	291	22.9	950	19.4
(*) EUR mn and % change in constant euros

c.21% RoTE supported by double-digit profit growth (customer revenue and large credit quality improvement)

Stake in Santander México rose from 74.96% to 91.65%

60

USA

KEY DATA	2019	% 2018
Loyal / active customers (%)	19	-
Digital customers (ks)	1,010	+6%
NPL ratio (%)	2.20	-72 bps
Cost of credit (%)	2.85	-42 bps
Efficiency ratio (%)	43.3	-10 bps
RoTE (%)1	8.7	+111 bps

Better customer experience and deeper relationships driving above market volume growth2

SBNA and SC collaboration in prime auto finance has originated ~USD 7 bn in 2019

Note: underlying RoTE

North America

P&L*	Q4'19	% Q3'19	2019	% 2018
NII	1,449	-1.2	5,769	1.5
Net fee income	230	-3.6	947	4.6
Total income	1,894	-4.6	7,605	3.8
Operating expenses	-869	2.2	-3,297	3.6
LLPs	-828	4.9	-2,792	1.2
PBT	158	-41.6	1,317	12.2
Underlying att. profit	98	-37.1	717	23.9
(*) EUR mn and % change in constant euros

Increased profitability driven by continued improvement risk- adjusted returns in Auto and focused on funding costs

Revenue growth and improvement in asset quality resulting in excellent YoY profit growth

61

1. RoTE adjusted for excess capital. Otherwise 5%
2. Data as of September 2019

Chile

KEY DATA	2019	% 2018
Loyal / active customers (%)	46	-
Digital customers (ks)	1,247	+15%
NPL ratio (%)	4.64	-2 bps
Cost of credit (%)	1.08	-11 bps
Efficiency ratio (%)	40.6	-71 bps
RoTE (%)	18.1	-26 bps

South America other markets

P&L*	Q4'19	% Q3'19	2019	% 2018
NII	464	6.4	1,867	-0.3
Net fee income	102	6.2	404	-0.9
Total income	638	4.6	2,539	4.0
Operating expenses	-246	0.7	-1,031	2.2
LLPs	-130	28.0	-443	-2.8
PBT	274	-1.2	1,129	4.8
Underlying att. profit	157	3.0	630	6.8
(*) EUR mn and % change in constant euros

Customer satisfaction improvement: 2nd position in NPS, increasing loyal and digital customers

Growth in account openings hit a record high in the year, driven by Santander Life and the effort in digitalisation

Note: underlying RoTE

Profit growth boosted by revenue, cost control and improved cost of credit

NII evolution impacted by lower inflation and historically low interest rates more than offset by gains on financial transactions

62

Argentina

KEY DATA	2019	% 2018
Loyal / active customers (%)	47	-
Digital customers (ks)	2,196	+5%
NPL ratio (%)	3.39	+22 bps
Cost of credit (%)	5.09	+164 bps
Efficiency ratio (%)	57.9	-423 bps
RoTE (%)	22.2	+11 pp

Volumes and profit evolution continued to be very conditioned on the economic environment

Maintained high dollar liquidity ratio

NPL ratio remains relatively stable in a low credit growth environment in real terms

Note: underlying RoTE

South America other markets

P&L*	Q4'19	% Q3'19	2019	% 2018
NII	250	6.9	940	126.7
Net fee income	118	4.8	446	84.3
Total income	359	12.8	1,316	101.6
Operating expenses	-209	19.6	-762	87.9
LLPs	-53	-3.2	-235	88.9
PBT	43	-23.5	217	120.6
Underlying att. profit	47	42.9	144	223.7
(*) EUR mn and % change in constant euros

Strong growth across all lines impacted by high inflation and very high interest rates

Profit rose due to greater NII (elevated interest rates and higher volumes of Central Bank notes) and efficiency improvement

63

Uruguay and Andean Region

South America other markets

URUGUAY
+24%
	150
121
2018	2019

PERU

+11%

43	48
2018	2019

COLOMBIA

+81%

	16
9
2018	2019

30%	21%	12%
RoTE	RoTE	RoTE

Increased volumes and activity reflected in profit growth (NII and fee income growth) and efficiency improvement

Note: Underlying attributable profit in constant EUR mn and underlying RoTE

64

Appendix

Net capital gains and provisions

Primary segments

Global businesses

Other countries. Detail

Balance sheet and capital management

Yield on loans and cost of deposits

NPL and coverage ratios and cost of credit

Responsible Banking

Quarterly income statements

65

Santander's capital levels, both phased-in and fully loaded, exceed minimum regulatory requirements

SREP capital requirements (phased-in) and MDA

Dec-19			15.05%
	13.18%	+186 bps	1.91%	T2
T2	2.00%		1.49%	AT1
AT1	1.50%	+196 bps
G-SIB buffer	1.00%	CCyB, 0.18%1
CCoB	2.50%
Pillar 2 R	1.50%		11.65%	CET1
Pillar 1	4.50%

Regulatory Requirement	Group ratios Dec-19
2020

The minimum CET1 to be maintained by the Group is 9.68%

AT1 and T2 issuance to targets (AT1: 1.5%; T2: 2% of RWAs) is close to zero assuming constant RWAs

As of Dec-19, Santander S.A. meets MREL requirements2 following the MREL eligible issuances over the last two years

The distance to the MDA for 2019 is 186 bps3, as at Dec-19

Note: Data calculated using the IFRS 9 transitional arrangements
(1)	Estimated Countercyclical buffer	66
(2)	Parent bank, preliminary data
(3)	MDA trigger = 1.96% - 0.01% - 0.09% = 1.86% (1 bp of AT1 and 9 bps of T2 shortfall is covered with CET1).

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, Dec-19		1,231	1,231
Loans and		824	Customer
advances to	942	deposits
customers
			56	Securitisations and others
Financial assets	190	180	M/LT debt issuances
Fixed assets & other	33	ST Funding
99	137	Equity and other liabilities
HQLAs2		Assets	Liabilities
EUR bn, Dec-19	HQLAs Level 1	198.9
	HQLAs Level 2	14.9
		 Level 2A	7.1
		 Level 2B	7.8

Group

1

1

LCR NSFR LTD

Nov-19Sep-19Dec-19

163% 112% 114%

148% 124% 119%

137% 104% 101%

175% 105% 77%

Note: Liquidity balance sheet for management purposes (net of trading derivatives and interbank balances)	67
(1) LCR and NSFR: Spain: Parent bank, UK: Ring-fenced bank

(2) 12 month average, provisional

In the year, the Group issued EUR 33 bn1 of MLT debt and is able to cover its very manageable maturity profile

Public market issuances in 2019		Maturity profile
EUR bn, Dec-19		EUR bn, Dec-19					39.1
13.4			San S.A.	6.2	3.4	9.1	7.9	7.4
1.1

4.8		8.5
		0.7
	4.4			3.8
		7.8	2.8
7.6	3.3	0.2
			3.5
	1.2
San S.A.	UK	SCF	USA	Other 2

SCF

UK

Brazil

USA

5.7	3.8	5.0	2.4	4.5	0.6
12.1	12.7			8.4	11.9
		3.1	4.8

4.4	1.7	0.3	0.1	0.0	0.0

1.0

0.5

1.1

1.9

0.9

2.9

2020

2021

2022

2023

2024

2025+

(1)	Data include public issuances from all units with period-average exchange rates. Excludes securitisations	68
(2)	Other public market issuances in Brazil, Chile, Mexico and Poland

2020-2021 issuance funding plan by main issuers

			2020					2021
		Snr Preferred +	Snr Non-	Hybrids	Total		Snr Preferred +	Snr Non-	Hybrids	Total
	EUR bn	Covered Bonds	Preferred		Covered Bonds	Preferred
	Santander S.A.	4-5	7-8	1-2	12-15		4-5	4-5	1-2	9-12
	SCF	6-8			6-8		7-9			7-9
	Santander UK	6-8	2-3		8-11		8-10	2-3		10-13
	SHUSA		1-2		1-2			1-2		1-2
	Total	16-21	10-13	1-2	27-36	19-24	7-10	1-2	27-36
			Maturities:	32.7			Maturities:	24.3
	Note: other secured issuances (for example ABS, RMBS, etc) are not cons d red in the table above.

Funding plan for Banco

Santander S.A. contemplates

the following:

1. Build up the stock of TLAC in order to manage increasing requirements o Pre-finance 2017 issuances which lose TLAC eligibility in 2021
   o Continue fulfilling the 1.5% AT1 and 2% T2 buffers subject to RWA growth o This issuance plan contemplates full repayment of TLTRO maturities

Note: Issuance plan subject to, amongst other considerations, market conditions and regulatory requirements. Other secured	69
issuances (for example ABS, RMBS, etc) are not considered in the table above

We actively manage interest rate risk and our ALCO portfolios to optimise results while maintaining an appropriate risk profile

Mostly positive interest rate sensitivity in Europe

ALCO portfolios reflect our geographic diversification

Net interest income sensitivity to a +100 bp parallel shift EUR mn, Nov-19

+9131

+97	2

+95	3

-64

Distribution of ALCO portfolios by country %, Dec-19

	Chile
	5%
Brazil	Spain
19%
21%

EUR 90 bn

	o/w HTC&S EUR 77 bn	UK
	17%
Mexico
9%

USA		Poland
	10%
14%	Portugal
	5%

(1)	Parent bank	70
(2)	Ring-fenced bank
(3)	SBNA

Appendix

Net capital gains and provisions

Primary segments

Global businesses

Other countries. Detail

Balance sheet and capital management

Yield on loans and cost of deposits

NPL and coverage ratios and cost of credit

Responsible Banking

Quarterly income statements

71

	on loans (%)
YieldYield on loans
%
		Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
	EUROPE	2.79	2.78	2.78	2.78	2.78	2.76	2.71	2.68
	Spain	2.00	2.00	2.03	2.05	2.06	2.08	2.02	2.01
	Santander Consumer Finance	4.60	4.55	4.51	4.45	4.51	4.48	4.41	4.26
	United Kingdom	2.82	2.79	2.80	2.80	2.72	2.68	2.64	2.59
	Portugal	1.86	1.81	1.74	1.83	1.79	1.76	1.70	1.64
	Poland	4.18	4.13	4.10	4.07	4.14	4.15	4.17	4.17
	NORTH AMERICA	9.25	9.45	9.31	10.16	9.81	9.72	9.48	9.25
	US	8.13	8.35	8.08	9.26	8.69	8.54	8.30	8.01
	Mexico	12.09	12.35	12.49	12.66	12.74	12.82	12.67	12.64
	SOUTH AMERICA	13.18	13.06	12.33	13.29	12.56	13.36	12.31	12.26
	Brazil	15.64	16.08	15.62	15.73	15.80	15.80	15.30	14.47
	Chile	7.52	7.53	7.35	7.43	5.98	8.44	6.93	7.39
	Argentina	18.65	19.03	20.57	24.54	24.23	23.99	23.95	26.26

72

	of deposits (%)
CostCo of deposits
%
		Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
	EUROPE	0.48	0.47	0.44	0.43	0.42	0.43	0.41	0.41
	Spain	0.34	0.29	0.22	0.19	0.14	0.14	0.13	0.13
	Santander Consumer Finance	0.65	0.61	0.60	0.59	0.60	0.60	0.60	0.58
	United Kingdom	0.64	0.64	0.64	0.68	0.68	0.70	0.70	0.69
	Portugal	0.18	0.18	0.15	0.18	0.14	0.12	0.11	0.10
	Poland	0.68	0.78	0.83	0.89	0.89	0.89	0.78	0.74
	NORTH AMERICA	1.46	1.55	1.68	1.70	1.94	1.93	1.99	1.75
	US	0.48	0.59	0.69	0.78	0.95	0.88	0.67	0.86
	Mexico	3.48	3.57	3.64	3.66	3.95	4.09	4.13	3.68
	SOUTH AMERICA	3.66	3.78	3.67	4.35	4.19	4.43	3.82	3.41
	Brazil	5.02	4.44	4.66	4.57	4.71	4.72	4.57	3.71
	Chile	1.78	1.73	1.75	1.84	1.62	2.01	1.63	1.47
	Argentina	5.25	6.32	7.79	11.25	9.92	11.08	10.87	12.29

73

Appendix

Net capital gains and provisions

Primary segments

Global businesses

Other countries. Detail

Balance sheet and capital management

Yield on loans and cost of deposits

NPL and coverage ratios and cost of credit

Responsible Banking

Quarterly income statements

74

Coverage ratio by stage

	Exposure1		Coverage
EUR bn	Dec-19	Dec-19	Dec-18
Stage 1	898		0.5%	0.5%
Stage 2	53		8.7%	9.2%
Stage 3	34		41.7%	42.4%

(1) Exposure subject to impairment. Additionally, there are EUR 31 bn in customer loans not subject to impairment recorded at mark to market with changes through P&L

75

NPLN	ratio (%)
ratio
%
			Mar-18	Jun-18	Sep-18	Dec-18	Mar-19	Jun-19	Sep-19	Dec-19
	EUROPE	4.08	3.97	3.90	3.67	3.61	3.48	3.47	3.25
	Spain	7.74	7.62	7.55	7.32	7.29	7.02	7.23	6.94
	Santander Consumer Finance	2.48	2.44	2.45	2.29	2.33	2.24	2.25	2.30
	United Kingdom	1.17	1.13	1.12	1.08	1.17	1.13	1.08	1.01
	Portugal	8.29	7.55	7.43	5.94	5.77	5.00	4.90	4.83
	Poland	4.77	4.58	4.23	4.28	4.39	4.21	4.35	4.31
	NORTH AMERICA	2.80	2.82	2.83	2.79	2.33	2.29	2.21	2.20
	US		2.86	2.91	3.00	2.92	2.41	2.32	2.18	2.20
	Mexico	2.68	2.58	2.41	2.43	2.12	2.21	2.30	2.19
	SOUTH AMERICA	4.83	4.82	4.83	4.81	4.83	4.81	4.81	4.86
	Brazil	5.26	5.26	5.26	5.25	5.26	5.27	5.33	5.32
	Chile	5.00	4.86	4.78	4.66	4.67	4.52	4.48	4.64
	Argentina	2.54	2.40	2.47	3.17	3.50	3.79	3.64	3.39
	TOTAL GROUP	4.02	3.92	3.87	3.73	3.62	3.51	3.47	3.32

76

	ratio (%)
CoverageCo erage ratio
%
		Mar-18	Jun-18	Sep-18	Dec-18	Mar-19	Jun-19	Sep-19	Dec-19
	EUROPE	54.4	52.9	52.1	50.1	49.5	49.9	48.2	49.8
	Spain	49.8	47.5	46.4	43.7	43.3	42.9	40.6	41.1
	Santander Consumer Finance	107.2	107.7	106.4	106.4	105.3	105.9	104.2	106.1
	United Kingdom	34.4	33.8	33.0	32.9	30.9	31.9	34.1	36.5
	Portugal	53.9	52.7	53.4	50.5	50.7	52.9	51.5	52.8
	Poland	72.0	72.1	71.6	67.1	67.6	69.7	69.0	66.8
	NORTH AMERICA	153.5	146.5	139.4	137.4	153.4	150.3	155.6	153.0
	US	169.1	156.9	145.5	142.8	161.0	158.4	166.6	161.8
	Mexico	113.5	116.1	120.5	119.7	130.1	126.9	125.2	128.3
	SOUTH AMERICA	96.5	94.4	94.1	94.6	94.1	93.0	89.7	88.4
	Brazil	110.4	108.7	109.1	106.9	107.7	105.5	101.1	99.8
	Chile	61.0	60.0	59.6	60.6	59.7	59.1	57.3	56.0
	Argentina	121.3	121.5	124.0	135.0	118.6	126.4	134.0	124.0
	TOTAL GROUP	70.0	68.6	67.9	67.4	67.8	68.1	67.3	67.9

77

Non-performing loans and loan-loss allowances. December 2019

Non-performing loans

100%: EUR 33,799 mn

Loan-loss allowances

100%: EUR 22,965 mn

Brazil, 14,0%		Brazil, 20,8%
Chile, 5,8%			Spain, 26,8%
Argentina, 0,5%		Spain, 44,0%
Other South America, 0,4%
Mexico, 2,5%		Chile, 4,8%
USA, 6,9%		Argentina, 0,9%
	Other South America, 0,6%
Other Europe, 0,6%		Mexico, 4,7%
Poland, 4,3%			SCF, 11,3%
Portugal, 5,4%		USA, 16,6%	UK, 4,5%
UK, 8,3%	SCF, 7,2%	Other Europe, 0,5%	Portugal, 4,3%
Poland, 4,3%

Percentage over Group's total	78

	of credit (%)
CostCo t of credit
%
		Mar-18	Jun-18	Sep-18	Dec-18	Mar-19	Jun-19	Sep-19	Dec-19
	EUROPE	0.24	0.25	0.26	0.24	0.24	0.24	0.25	0.28
	Spain	0.35	0.36	0.41	0.38	0.40	0.41	0.41	0.43
	Santander Consumer Finance	0.36	0.37	0.40	0.38	0.38	0.36	0.38	0.48
	United Kingdom	0.11	0.10	0.09	0.07	0.07	0.06	0.08	0.10
	Portugal	0.08	0.10	0.03	0.09	0.03	0.03	0.00	(0.02)
	Poland	0.69	0.71	0.69	0.65	0.61	0.66	0.71	0.72
	NORTH AMERICA	3.22	2.96	2.92	3.12	2.97	2.95	2.93	2.76
	US	3.29	3.02	3.00	3.27	3.11	3.09	3.09	2.85
	Mexico	2.95	2.78	2.72	2.75	2.62	2.61	2.55	2.49
	SOUTH AMERICA	3.15	3.10	3.00	2.99	2.89	2.87	2.90	2.92
	Brazil	4.35	4.30	4.17	4.06	3.88	3.84	3.85	3.93
	Chile	1.22	1.18	1.18	1.19	1.13	1.10	1.06	1.08
	Argentina	2.06	2.47	2.92	3.45	4.02	4.33	4.86	5.09
	TOTAL GROUP	1.04	0.99	0.98	1.00	0.97	0.98	1.00	1.00

79

Appendix

Net capital gains and provisions

Primary segments

Global businesses

Other countries. Detail

Balance sheet and capital management

Yield on loans and cost of deposits

NPL and coverage ratios and cost of credit

Responsible Banking

Quarterly income statements

80

Santander Responsible banking

We are building a more responsable bank aligned with our commitments

From…To….

Cumulative target

(1) According to a well-known external source in each country (e.g. Great Place to Work, Merco); (2) Senior positions represent 1% of total workforce; (3) Compares employees of the same job, level and function; (4) Mostly	81
unbanked and underbanked, empowered through products, services and social investment initiatives - to get access to the financial system, receive tailored finance and increase knowledge and resilience through financial
education; (5) Includes SAN overall contribution to green finance: project finance, syndicated loans, green bonds, capital finance, export finance, advisory, structuring and other products to help our clients transition to a low

carbon economy. Commitment from 2019 to 2030 is 220Bn; (6) For countries where it is possible to certify the source of the electricity for the Group's properties; (7) Supported through SAN Universities (students who receive a Santander scholarship, are interns in an SME or participate in entrepreneurship programmes supported by SAN); (8) Excluding people helped through SAN Universities and financial education initiatives

Appendix

Net capital gains and provisions

Primary segments

Global businesses

Other countries. Detail

Balance sheet and capital management

Yield on loans and cost of deposits

NPL and coverage ratios and cost of credit

Responsible Banking

Quarterly income statements

82

Santander Group (EUR mn)

GRUPO SANTANDER

EUR mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19		2018	2019
Net interest income	8,454	8,477	8,349	9,061	8,682	8,954	8,806	8,841	34,341	35,283
Net fee income	2,955	2,934	2,640	2,956	2,931	2,932	2,955	2,961	11,485	11,779
Gains (losses) on financial transactions and other	742	600	731	525	472	465	705	790	2,598	2,432
Total income	12,151	12,011	11,720	12,542	12,085	12,351	12,466	12,592	48,424	49,494
Operating expenses	(5,764)	(5,718)	(5,361)	(5,936)	(5,758)	(5,829)	(5,722)	(5,971)	(22,779)	(23,280)
Net operating income	6,387	6,293	6,359	6,606	6,327	6,522	6,744	6,621	25,645	26,214
Net loan-loss provisions	(2,282)	(2,015)	(2,121)	(2,455)	(2,172)	(2,141)	(2,435)	(2,573)	(8,873)	(9,321)
Other gains (losses) and provisions	(416)	(487)	(488)	(605)	(471)	(486)	(465)	(542)	(1,996)	(1,964)

Underlying profit before tax	3,689	3,791	3,750	3,546	3,684	3,895	3,844	3,506
Underlying consolidated profit	2,409	2,412	2,356	2,369	2,358	2,542	2,529	2,397
Underlying attributable profit	2,054	1,998	1,990	2,022	1,948	2,097	2,135	2,072
Net capital gains and provisions*	-	(300)	-	46	(108)	(706)	(1,634)	711
Attributable profit	2,054	1,698	1,990	2,068	1,840	1,391	501	2,783

14,776 14,929

9,546 9,826

8,064 8,252

1. (1,737)
   7,810 6,515

(*) Including:	in Q2'18, costs associated to integrations (mainly restructuring costs), net of tax impacts, in Spain, the Corporate Centre and Portugal
	in Q4'18, badwill in Poland for the integration of Deutsche Bank Polska's retail and SMEs businesses
	in Q1'19, capital gains from Prisma, capital losses due to property sales and restructuring costs
	in Q2'19, restructuring costs in Spain and the UK and PPI
	in Q3,19, restructuring costs in the UK and Poland, PPI, deterioration of goodwill ascribed to the UK and impact of devaluation of the ARS on the capital gain from Prisma	83
	registered in Q1'19
	in Q4'19, net capital gains related to the agreement with Crédit Agricole S.A. to integrate the custody businesses, net positive results related to tax reform in Brazil, net
	capital losses related to real estate stakes (Spain), restructuring costs, provisions related to intangible assets and other

Santander Group (Constant EUR mn)

GRUPO SANTANDER

Constant EUR mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19		2018	2019
Net interest income	8,205	8,356	8,631	8,894	8,548	8,854	8,920	8,960	34,086	35,283
Net fee income	2,809	2,849	2,762	2,837	2,869	2,894	3,004	3,012	11,258	11,779
Gains (losses) on financial transactions and other	730	572	787	546	471	474	699	787	2,635	2,432
Total income	11,744	11,778	12,179	12,277	11,888	12,223	12,624	12,759	47,978	49,494
Operating expenses	(5,590)	(5,617)	(5,560)	(5,755)	(5,665)	(5,758)	(5,821)	(6,036)	(22,522)	(23,280)
Net operating income	6,154	6,161	6,619	6,522	6,223	6,465	6,803	6,723	25,456	26,214
Net loan-loss provisions	(2,233)	(1,982)	(2,213)	(2,424)	(2,136)	(2,120)	(2,460)	(2,606)	(8,852)	(9,321)
Other gains (losses) and provisions	(394)	(463)	(515)	(601)	(461)	(487)	(468)	(548)	(1,973)	(1,964)

Underlying profit before tax	3,527	3,716	3,890	3,497	3,626	3,858	3,875	3,570
Underlying consolidated profit	2,309	2,367	2,455	2,351	2,326	2,516	2,549	2,436
Underlying attributable profit	1,959	1,950	2,084	2,005	1,919	2,072	2,155	2,105
Net capital gains and provisions*	-	(300)	-	46	(152)	(704)	(1,603)	722
Attributable profit	1,959	1,650	2,084	2,050	1,768	1,369	552	2,827

14,631 14,929

9,483 9,826

7,998 8,252

1. (1,737)
   7,744 6,515

(*) Including:	in Q2'18, costs associated to integrations (mainly restructuring costs), net of tax impacts, in Spain, the Corporate Centre and Portugal
	in Q4'18, badwill in Poland for the integration of Deutsche Bank Polska's retail and SMEs businesses
	in Q1'19, capital gains from Prisma, capital losses due to property sales and restructuring costs
	in Q2'19, restructuring costs in Spain and the UK and PPI
	in Q3,19, restructuring costs in the UK and Poland, PPI, deterioration of goodwill ascribed to the UK and impact of devaluation of the ARS on the capital gain from Prisma	84
	registered in Q1'19
	in Q4'19, net capital gains related to the agreement with Crédit Agricole S.A. to integrate the custody businesses, net positive results related to tax reform in Brazil, net
	capital losses related to real estate stakes (Spain), restructuring costs, provisions related to intangible assets and other

Europe (EUR mn)

EUROPE

EUR mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
Net interest income	3,502	3,508	3,562	3,631	3,561	3,580	3,530	3,531
Net fee income	1,372	1,382	1,354	1,327	1,327	1,304	1,310	1,319
Gains (losses) on financial transactions and other	477	282	503	355	337	304	455	443
Total income	5,352	5,173	5,419	5,314	5,225	5,188	5,295	5,292
Operating expenses	(2,841)	(2,825)	(2,735)	(2,764)	(2,802)	(2,789)	(2,719)	(2,733)
Net operating income	2,510	2,348	2,684	2,550	2,423	2,399	2,576	2,559
Net loan-loss provisions	(457)	(403)	(406)	(306)	(457)	(387)	(497)	(498)
Other gains (losses) and provisions	(195)	(194)	(205)	(435)	(198)	(231)	(130)	(209)
Underlying profit before tax	1,859	1,751	2,072	1,809	1,768	1,781	1,949	1,852
Underlying consolidated profit	1,359	1,276	1,498	1,339	1,276	1,306	1,418	1,370
Underlying attributable profit	1,260	1,162	1,384	1,242	1,163	1,191	1,286	1,238

2018 2019

14,204 14,201

5,435 5,260

1,618 1,540

21,257 21,001

(11,165) (11,044)

10,091 9,957

(1,572) (1,839)

(1,028) (768)

7,491 7,350

5,472 5,371

5,048 4,878

85

Europe (Constant EUR mn)

EUROPE

Constant EUR mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
Net interest income	3,500	3,501	3,577	3,639	3,555	3,574	3,559	3,514
Net fee income	1,372	1,382	1,358	1,330	1,326	1,303	1,317	1,314
Gains (losses) on financial transactions and other	480	282	505	357	338	304	456	443

Total income	5,351	5,164	5,440	5,325	5,218	5,181	5,331	5,271
Operating expenses	(2,844)	(2,823)	(2,748)	(2,771)	(2,798)	(2,785)	(2,740)	(2,720)
Net operating income	2,508	2,342	2,692	2,554	2,420	2,396	2,591	2,551
Net loan-loss provisions	(455)	(403)	(406)	(308)	(456)	(387)	(498)	(497)
Other gains (losses) and provisions	(195)	(193)	(206)	(435)	(198)	(231)	(132)	(208)
Underlying profit before tax	1,858	1,746	2,080	1,811	1,766	1,777	1,961	1,846
Underlying consolidated profit	1,358	1,271	1,503	1,341	1,275	1,303	1,428	1,365
Underlying attributable profit	1,259	1,158	1,389	1,244	1,161	1,188	1,295	1,234

2018 2019

14,216 14,201

5,442 5,260

1,623 1,540

21,281 21,001

(11,185) (11,044)

10,096 9,957

(1,572) (1,839)

(1,029) (768)

7,494 7,350

5,473 5,371

5,051 4,878

86

Spain (EUR mn)

Spain

EUR mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
Net interest income	969	1,026	1,044	1,054	1,009	1,009	967	934
Net fee income	669	671	651	633	623	624	614	620
Gains (losses) on financial transactions and other	247	163	370	117	224	216	408	258
Total income	1,885	1,860	2,065	1,804	1,857	1,849	1,989	1,811
Operating expenses	(1,112)	(1,093)	(1,065)	(1,068)	(1,025)	(1,020)	(999)	(977)
Net operating income	773	767	1,000	737	832	829	990	834
Net loan-loss provisions	(217)	(220)	(213)	(140)	(242)	(228)	(210)	(176)
Other gains (losses) and provisions	(131)	(102)	(132)	(60)	(112)	(143)	(100)	(100)
Underlying profit before tax	425	446	655	537	478	458	681	557
Underlying consolidated profit	326	335	486	408	356	338	491	400
Underlying attributable profit	326	335	486	408	356	338	491	400

2018 2019

4,093 3,919

2,624 2,481

898 1,107

7,615 7,506

(4,338) (4,021)

3,277 3,485

1. (856)

1. (455)

2,063 2,174

1,555 1,585

1,554 1,585

87

Santander Consumer Finance (EUR mn)

Santand r Consumer Finance

EUR mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
Net interest income	915	928	937	943	941	971	977	960
Net fee income	215	188	206	189	214	201	213	195
Gains (losses) on financial transactions and other	10	10	13	56	13	(18)	14	30

Total income	1,140	1,126	1,157	1,187	1,167	1,154	1,203	1,185
Operating expenses	(510)	(508)	(476)	(495)	(508)	(527)	(504)	(499)
Net operating income	630	618	681	692	659	627	699	686
Net loan-loss provisions	(120)	(69)	(124)	(47)	(122)	(59)	(147)	(148)
Other gains (losses) and provisions	24	13	5	(166)	24	(12)	42	(33)
Underlying profit before tax	534	562	561	479	561	556	594	504
Underlying consolidated profit	388	411	405	357	402	401	420	394
Underlying attributable profit	322	345	331	295	324	334	338	319

2018 2019

3,723 3,848

1. 823

1. 39

4,610 4,710

(1,989) (2,038)

2,622 2,672

1. (477)

1. 20

2,137 2,215

1,561 1,618

1,293 1,314

88

Santander Consumer Finance (Constant EUR mn)

Santand r Consumer Finance

Constant EUR mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
Net interest income	910	923	933	940	940	968	977	964
Net fee income	214	188	206	189	214	201	213	195
Gains (losses) on financial transactions and other	10	10	14	56	13	(18)	14	30
Total income	1,134	1,121	1,153	1,184	1,166	1,151	1,204	1,189
Operating expenses	(508)	(506)	(474)	(494)	(508)	(526)	(504)	(501)
Net operating income	627	615	678	690	658	626	699	688
Net loan-loss provisions	(120)	(70)	(123)	(48)	(121)	(60)	(147)	(149)
Other gains (losses) and provisions	24	13	5	(166)	24	(12)	42	(33)
Underlying profit before tax	531	558	560	477	561	554	595	506
Underlying consolidated profit	386	408	404	356	402	399	420	396
Underlying attributable profit	320	342	330	293	324	332	338	320

2018 2019

3,706 3,848

1. 823

1. 39

4,592 4,710

(1,981) (2,038)

2,611 2,672

1. (477)

1. 20

2,126 2,215

1,553 1,618

1,286 1,314

89

United Kingdom (EUR mn)

United K gdom

EUR mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
Net interest income	1,023	1,029	1,016	1,011	975	944	908	961
Net fee income	219	240	230	224	216	207	217	226
Gains (losses) on financial transactions and other	29	50	55	8	15	32	(5)	33
Total income	1,270	1,319	1,300	1,242	1,206	1,183	1,119	1,220
Operating expenses	(725)	(715)	(697)	(700)	(739)	(703)	(681)	(712)
Net operating income	545	605	603	542	467	479	438	508
Net loan-loss provisions	(66)	(36)	(26)	(43)	(61)	(19)	(77)	(96)
Other gains (losses) and provisions	(59)	(44)	(63)	(155)	(50)	(25)	(43)	(66)
Underlying profit before tax	420	524	514	344	357	435	318	345
Underlying consolidated profit	297	382	364	254	260	333	252	255
Underlying attributable profit	290	375	358	249	254	327	246	249

2018 2019

4,078 3,788

1. 866

1. 74

5,132 4,727

(2,837) (2,835)

2,295 1,892

1. (253)

1. (184)

1,803 1,455

1,296 1,100

1,272 1,077

90

United Kingdom (GBP mn)

United K gdom

GBP mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
Net interest income	904	901	907	896	850	825	820	827
Net fee income	193	210	205	198	189	181	195	194
Gains (losses) on financial transactions and other	25	44	49	7	13	28	(4)	29
Total income	1,122	1,156	1,160	1,101	1,052	1,034	1,011	1,050
Operating expenses	(641)	(626)	(622)	(620)	(644)	(615)	(615)	(612)
Net operating income	481	530	538	481	407	419	396	437
Net loan-loss provisions	(58)	(32)	(24)	(38)	(53)	(17)	(68)	(83)
Other gains (losses) and provisions	(52)	(39)	(56)	(137)	(43)	(22)	(39)	(58)
Underlying profit before tax	371	460	458	306	311	380	288	296
Underlying consolidated profit	262	335	325	225	227	291	228	219
Underlying attributable profit	257	328	319	221	222	286	223	214

2018 2019

3,608 3,322

1. 759

1. 65

4,540 4,146

(2,510) (2,487)

2,030 1,659

1. (222)

1. (161)

1,595 1,276

1,147 965

1,125 945

91

Portugal (EUR mn)

Portugal

EUR mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
Net interest income	222	213	211	211	216	213	214	213
Net fee income	98	91	92	96	98	99	96	98
Gains (losses) on financial transactions and other	22	42	20	26	44	42	22	21
Total income	341	346	323	334	357	354	331	332
Operating expenses	(159)	(165)	(157)	(162)	(157)	(154)	(155)	(156)
Net operating income	182	181	165	171	200	200	176	175
Net loan-loss provisions	(8)	(0)	(11)	(12)	13	(1)	(0)	(4)
Other gains (losses) and provisions	(9)	(22)	13	36	(20)	(13)	2	21
Underlying profit before tax	166	159	166	195	193	186	178	192
Underlying consolidated profit	127	103	115	136	135	126	125	140
Underlying attributable profit	127	103	114	136	135	125	125	140

2018 2019

858 856

1. 390

1. 129

1,344 1,375

1. (623)

1. 751

1. 8

1. (9)

686 750

1. 527

1. 525

92

Poland (EUR mn)

Poland

EUR mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
Net interest income	247	240	243	265	281	284	298	307
Net fee income	112	114	111	115	113	117	119	117
Gains (losses) on financial transactions and other	(26)	44	13	10	(18)	39	24	34

Total income	333	398	367	390	377	440	442	459
Operating expenses	(154)	(163)	(157)	(165)	(173)	(176)	(175)	(169)
Net operating income	178	236	210	224	204	263	267	290
Net loan-loss provisions	(46)	(41)	(33)	(41)	(43)	(64)	(59)	(51)
Other gains (losses) and provisions	(13)	(34)	(26)	(61)	(34)	(34)	(24)	(34)
Underlying profit before tax	119	160	151	122	127	166	183	205
Underlying consolidated profit	89	131	114	88	89	130	139	153
Underlying attributable profit	63	92	80	61	61	89	95	104

2018 2019

996 1,171

1. 467

1. 80

1,488 1,717

1. (693)

848 1,024

1. (217)

1. (127)

552 681

1. 511

1. 349

93

Poland (PLN mn)

Poland

PLN mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
Net interest income	1,031	1,025	1,047	1,139	1,209	1,216	1,288	1,317
Net fee income	469	487	478	493	488	499	514	504
Gains (losses) on financial transactions and other	(110)	183	54	41	(76)	168	104	147
Total income	1,390	1,695	1,579	1,674	1,622	1,883	1,906	1,968
Operating expenses	(646)	(693)	(676)	(710)	(745)	(755)	(754)	(726)
Net operating income	745	1,002	904	963	877	1,128	1,152	1,242
Net loan-loss provisions	(191)	(175)	(143)	(177)	(186)	(272)	(256)	(217)
Other gains (losses) and provisions	(55)	(146)	(113)	(261)	(145)	(146)	(106)	(147)
Underlying profit before tax	499	681	648	525	546	710	791	878
Underlying consolidated profit	371	557	489	379	385	556	600	655
Underlying attributable profit	262	391	344	263	264	379	409	446

2018 2019

4,242 5,030

1,928 2,005

168 343

6,338 7,379

(2,725) (2,979)

3,613 4,399

1. (931)

1. (544)

2,352 2,925

1,796 2,195

1,259 1,498

94

Other Europe (EUR mn)

Other Eu ope

EUR mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
Net interest income	127	71	111	147	139	159	166	155
Net fee income	60	77	64	71	62	56	52	63
Gains (losses) on financial transactions and other	196	(27)	32	139	60	(7)	(8)	68
Total income	382	122	207	357	261	209	211	286
Operating expenses	(181)	(181)	(182)	(174)	(200)	(208)	(205)	(219)
Net operating income	202	(59)	24	183	61	0	5	66
Net loan-loss provisions	0	(36)	1	(24)	(2)	(16)	(3)	(23)
Other gains (losses) and provisions	(7)	(4)	(0)	(28)	(7)	(4)	(7)	4
Underlying profit before tax	194	(99)	25	131	52	(19)	(5)	48
Underlying consolidated profit	132	(86)	15	96	33	(21)	(8)	27
Underlying attributable profit	132	(87)	15	94	32	(22)	(8)	26

2018 2019

456 620

1. 234

1. 112

1,068 966

1. (833)

350 133

1. (44)

1. (14)

251 76

1. 31

1. 28

95

Other Europe (Constant EUR mn)

Other Eu ope

Constant EUR mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
Net interest income	129	72	111	147	139	159	166	155
Net fee income	62	78	65	71	62	57	52	63
Gains (losses) on financial transactions and other	197	(26)	33	140	60	(7)	(8)	67
Total income	388	124	209	358	262	209	210	285
Operating expenses	(184)	(184)	(184)	(175)	(200)	(208)	(205)	(219)
Net operating income	204	(59)	25	183	61	1	5	66
Net loan-loss provisions	(0)	(36)	1	(24)	(2)	(16)	(3)	(23)
Other gains (losses) and provisions	(8)	(4)	(0)	(28)	(7)	(4)	(7)	4
Underlying profit before tax	196	(99)	26	131	53	(19)	(5)	48
Underlying consolidated profit	134	(86)	15	96	34	(21)	(8)	27
Underlying attributable profit	133	(87)	16	94	32	(22)	(8)	26

2018 2019

459 620

1. 234

1. 112

1,079 966

1. (833)

353 133

1. (44)

1. (14)

253 76

1. 31

1. 28

96

North America (EUR mn)

NORTH AMERICA

EUR mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
Net interest income	1,869	1,933	2,065	2,286	2,173	2,230	2,259	2,265
Net fee income	402	408	407	399	439	463	448	427
Gains (losses) on financial transactions and other	138	197	194	178	142	226	277	257

Total income	2,409	2,538	2,666	2,863	2,753	2,918	2,983	2,949
Operating expenses	(1,078)	(1,103)	(1,134)	(1,173)	(1,172)	(1,214)	(1,267)	(1,314)
Net operating income	1,331	1,435	1,532	1,690	1,581	1,705	1,716	1,634
Net loan-loss provisions	(779)	(634)	(876)	(1,159)	(804)	(793)	(1,009)	(1,050)
Other gains (losses) and provisions	(26)	(62)	(74)	(40)	(64)	(31)	(79)	(31)
Underlying profit before tax	526	739	581	491	713	881	628	554
Underlying consolidated profit	397	535	423	383	526	664	481	422
Underlying attributable profit	298	393	318	296	386	503	388	389

2018 2019

8,154 8,926

1,615 1,776

707 902

10,476 11,604

(4,488) (4,968)

5,988 6,636

(3,449) (3,656)

1. (205)

2,337 2,776

1,738 2,092

1,304 1,667

97

North America (Constant EUR mn)

NORTH AMERICA

Constant EUR mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
Net interest income	2,034	2,063	2,136	2,359	2,203	2,234	2,250	2,240
Net fee income	435	436	419	411	444	463	446	422
Gains (losses) on financial transactions and other	152	210	201	182	144	227	276	255
Total income	2,621	2,708	2,756	2,953	2,791	2,924	2,972	2,917
Operating expenses	(1,174)	(1,176)	(1,171)	(1,208)	(1,188)	(1,216)	(1,262)	(1,301)
Net operating income	1,447	1,532	1,585	1,745	1,603	1,708	1,709	1,616
Net loan-loss provisions	(850)	(674)	(910)	(1,201)	(815)	(795)	(1,006)	(1,040)
Other gains (losses) and provisions	(28)	(66)	(78)	(41)	(65)	(31)	(79)	(30)
Underlying profit before tax	569	792	596	504	723	883	625	545
Underlying consolidated profit	430	573	434	394	533	665	479	416
Underlying attributable profit	322	421	326	305	392	504	387	384

2018 2019

8,592 8,926

1,701 1,776

745 902

11,038 11,604

(4,729) (4,968)

6,309 6,636

(3,634) (3,656)

1. (205)

2,462 2,776

1,831 2,092

1,374 1,667

98

United States (EUR mn)

United S tes

EUR mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
Net interest income	1,221	1,281	1,337	1,553	1,407	1,453	1,460	1,449
Net fee income	214	219	208	217	234	244	238	230
Gains (losses) on financial transactions and other	143	170	190	196	174	222	278	215
Total income	1,578	1,670	1,735	1,967	1,815	1,920	1,977	1,894
Operating expenses	(736)	(738)	(749)	(796)	(775)	(805)	(847)	(869)
Net operating income	842	931	986	1,171	1,039	1,115	1,130	1,025
Net loan-loss provisions	(579)	(445)	(649)	(945)	(611)	(568)	(786)	(828)
Other gains (losses) and provisions	(23)	(50)	(69)	(57)	(58)	(26)	(76)	(39)
Underlying profit before tax	240	436	268	169	370	521	267	158
Underlying consolidated profit	173	297	174	122	260	383	196	109
Underlying attributable profit	124	209	124	91	181	284	154	98

2018 2019

5,391 5,769

1. 947

1. 889

6,949 7,605

(3,019) (3,297)

3,930 4,309

(2,618) (2,792)

1. (200)

1,113 1,317

1. 947

1. 717

99

United States (USD mn)

United S tes

USD mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
Net interest income	1,500	1,526	1,555	1,780	1,598	1,633	1,623	1,604
Net fee income	263	261	241	248	266	275	264	255
Gains (losses) on financial transactions and other	176	203	222	225	197	250	310	238
Total income	1,940	1,990	2,018	2,252	2,061	2,158	2,198	2,096
Operating expenses	(905)	(879)	(869)	(908)	(881)	(905)	(942)	(963)
Net operating income	1,035	1,111	1,148	1,344	1,180	1,253	1,256	1,134
Net loan-loss provisions	(712)	(528)	(758)	(1,092)	(694)	(637)	(876)	(918)
Other gains (losses) and provisions	(28)	(60)	(81)	(65)	(66)	(29)	(85)	(43)
Underlying profit before tax	295	523	308	187	420	586	295	172
Underlying consolidated profit	213	356	200	135	295	431	216	118
Underlying attributable profit	153	251	143	101	206	319	170	107

2018 2019

6,361 6,457

1,013 1,059

825 996

8,199 8,513

(3,562) (3,690)

4,637 4,823

(3,089) (3,126)

1. (223)

1,313 1,474

1. 1,060

1. 803

100

Mexico (EUR mn)

Mexico

EUR mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
Net interest income	649	653	728	733	766	777	798	816
Net fee income	187	188	199	181	204	218	210	197
Gains (losses) on financial transactions and other	(5)	27	3	(18)	(32)	4	(1)	42
Total income	831	868	931	897	939	999	1,007	1,054
Operating expenses	(342)	(364)	(385)	(378)	(397)	(409)	(420)	(445)
Net operating income	489	504	546	519	542	590	586	609
Net loan-loss provisions	(200)	(189)	(227)	(215)	(193)	(225)	(223)	(222)
Other gains (losses) and provisions	(3)	(12)	(5)	17	(6)	(5)	(3)	8
Underlying profit before tax	286	303	313	321	343	360	361	395
Underlying consolidated profit	224	237	249	261	266	280	286	313
Underlying attributable profit	173	183	194	205	205	219	234	291

2018 2019

2,763 3,157

1. 829

1. 13

3,527 3,998

(1,469) (1,671)

2,058 2,327

1. (863)

1. (5)

1,224 1,459

1. 1,145

1. 950

101

Mexico (MXN mn)

Mexico

MXN mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
Net interest income	14,945	15,080	16,086	16,573	16,703	16,694	17,231	17,393
Net fee income	4,312	4,355	4,390	4,098	4,455	4,695	4,535	4,188
Gains (losses) on financial transactions and other	(114)	623	71	(407)	(687)	83	(31)	906
Total income	19,143	20,058	20,546	20,264	20,471	21,471	21,735	22,487
Operating expenses	(7,870)	(8,418)	(8,504)	(8,534)	(8,655)	(8,786)	(9,076)	(9,501)
Net operating income	11,273	11,640	12,043	11,730	11,816	12,685	12,659	12,987
Net loan-loss provisions	(4,610)	(4,357)	(5,020)	(4,853)	(4,211)	(4,850)	(4,813)	(4,725)
Other gains (losses) and provisions	(72)	(272)	(115)	383	(120)	(105)	(59)	175
Underlying profit before tax	6,591	7,011	6,908	7,259	7,485	7,729	7,787	8,437
Underlying consolidated profit	5,155	5,484	5,491	5,892	5,804	6,028	6,167	6,682
Underlying attributable profit	3,995	4,233	4,281	4,626	4,472	4,713	5,059	6,219

2018 2019

62,685 68,021

17,153 17,873

173 270

80,011 86,164

(33,326) (36,017)

46,685 50,146

(18,840) (18,599)

1. (110)

27,769 31,438

22,021 24,681

17,135 20,462

102

South America (EUR mn)

SOUTH AMERICA

EUR mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
Net interest income	3,298	3,259	2,952	3,382	3,222	3,425	3,314	3,356
Net fee income	1,189	1,151	903	1,254	1,178	1,178	1,204	1,228
Gains (losses) on financial transactions and other	123	131	28	4	88	45	59	130
Total income	4,610	4,541	3,883	4,640	4,487	4,647	4,577	4,714
Operating expenses	(1,716)	(1,645)	(1,353)	(1,843)	(1,645)	(1,664)	(1,586)	(1,762)
Net operating income	2,894	2,896	2,530	2,797	2,842	2,984	2,991	2,953
Net loan-loss provisions	(1,010)	(948)	(810)	(968)	(903)	(956)	(916)	(1,015)
Other gains (losses) and provisions	(152)	(181)	(153)	(177)	(154)	(151)	(193)	(249)
Underlying profit before tax	1,732	1,767	1,566	1,652	1,785	1,876	1,882	1,688
Underlying consolidated profit	1,077	1,084	895	1,020	1,093	1,205	1,184	1,107
Underlying attributable profit	920	926	747	858	926	1,035	1,016	947

2018 2019

12,891 13,316

4,497 4,787

286 322

17,674 18,425

(6,558) (6,656)

11,117 11,769

(3,736) (3,789)

1. (748)

6,717 7,232

4,076 4,588

3,451 3,924

103

South America (Constant EUR mn)

SOUTH AMERICA

Constant EUR mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
Net interest income	2,887	3,016	3,149	3,134	3,064	3,328	3,408	3,516
Net fee income	1,009	1,039	1,007	1,120	1,111	1,140	1,248	1,288
Gains (losses) on financial transactions and other	95	91	74	20	84	53	55	131
Total income	3,991	4,146	4,230	4,274	4,259	4,521	4,711	4,935
Operating expenses	(1,444)	(1,473)	(1,502)	(1,621)	(1,540)	(1,594)	(1,669)	(1,853)
Net operating income	2,547	2,673	2,728	2,653	2,719	2,927	3,042	3,081
Net loan-loss provisions	(891)	(875)	(869)	(894)	(856)	(933)	(943)	(1,058)
Other gains (losses) and provisions	(127)	(152)	(176)	(172)	(144)	(152)	(195)	(257)
Underlying profit before tax	1,528	1,646	1,683	1,588	1,720	1,841	1,904	1,766
Underlying consolidated profit	946	1,005	978	989	1,055	1,180	1,197	1,156
Underlying attributable profit	802	854	828	829	894	1,012	1,029	989

2018 2019

12,186 13,316

4,177 4,787

279 322

16,642 18,425

(6,040) (6,656)

10,602 11,769

(3,529) (3,789)

1. (748)

6,445 7,232

3,918 4,588

3,313 3,924

104

Brazil (EUR mn)

Brazil

EUR mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
Net interest income	2,482	2,424	2,377	2,475	2,459	2,520	2,560	2,534
Net fee income	920	872	776	929	931	924	970	974
Gains (losses) on financial transactions and other	42	27	27	(8)	21	9	(7)	57
Total income	3,445	3,323	3,180	3,396	3,411	3,453	3,522	3,565
Operating expenses	(1,169)	(1,100)	(1,036)	(1,196)	(1,125)	(1,102)	(1,137)	(1,242)
Net operating income	2,276	2,224	2,145	2,201	2,286	2,351	2,385	2,323
Net loan-loss provisions	(822)	(750)	(665)	(726)	(710)	(761)	(753)	(813)
Other gains (losses) and provisions	(154)	(170)	(174)	(198)	(167)	(153)	(178)	(205)
Underlying profit before tax	1,300	1,303	1,306	1,276	1,409	1,438	1,454	1,305
Underlying consolidated profit	758	726	695	749	816	856	862	777
Underlying attributable profit	674	643	615	659	721	762	767	689

2018 2019

9,758 10,072

3,497 3,798

89 81

13,345 13,951

(4,500) (4,606)

8,845 9,345

(2,963) (3,036)

1. (704)

5,185 5,606

2,927 3,311

2,592 2,939

105

Brazil (BRL mn)

Brazil

BRL mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
Net interest income	9,898	10,383	10,874	10,747	10,516	11,095	11,272	11,534
Net fee income	3,670	3,738	3,577	4,032	3,980	4,070	4,271	4,429
Gains (losses) on financial transactions and other	169	119	128	(32)	91	41	(31)	254

Total income	13,737	14,241	14,579	14,747	14,587	15,206	15,511	16,216
Operating expenses	(4,662)	(4,716)	(4,756)	(5,188)	(4,810)	(4,857)	(5,007)	(5,636)
Net operating income	9,075	9,525	9,823	9,559	9,777	10,350	10,504	10,580
Net loan-loss provisions	(3,276)	(3,220)	(3,070)	(3,155)	(3,037)	(3,347)	(3,314)	(3,690)
Other gains (losses) and provisions	(615)	(727)	(793)	(859)	(716)	(673)	(785)	(928)
Underlying profit before tax	5,184	5,578	5,960	5,545	6,024	6,330	6,405	5,962
Underlying consolidated profit	3,021	3,114	3,185	3,250	3,491	3,769	3,795	3,546
Underlying attributable profit	2,687	2,758	2,822	2,863	3,082	3,353	3,376	3,147

2018 2019

41,903 44,416

15,017 16,750

384 355

57,304 61,521

(19,323) (20,310)

37,981 41,211

(12,721) (13,387)

(2,994) (3,103)

22,266 24,721

12,570 14,601

11,130 12,958

106

Chile (EUR mn)

Chile

EUR mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
Net interest income	490	495	481	477	440	500	462	464
Net fee income	111	117	101	95	103	97	102	102
Gains (losses) on financial transactions and other	40	30	49	49	56	59	82	71

Total income	640	642	632	622	600	656	646	638
Operating expenses	(259)	(273)	(257)	(259)	(255)	(269)	(260)	(246)
Net operating income	381	369	374	363	344	387	386	392
Net loan-loss provisions	(121)	(115)	(117)	(120)	(102)	(105)	(106)	(130)
Other gains (losses) and provisions	22	32	19	31	37	(1)	15	12
Underlying profit before tax	282	287	276	274	279	281	295	274
Underlying consolidated profit	222	231	220	226	219	237	234	229
Underlying attributable profit	150	157	152	153	148	163	162	157

2018 2019

1,944 1,867

1. 404

1. 268

2,535 2,539

(1,047) (1,031)

1,488 1,508

1. (443)
   103 63

1,118 1,129

1. 919

1. 630

107

Chile (CLP mn)

Chile

CLP mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
Net interest income	362,502	366,847	370,827	370,410	333,439	383,545	363,195	386,260
Net fee income	81,758	86,556	78,318	73,959	78,010	74,473	80,052	85,052
Gains (losses) on financial transactions and other	29,304	22,193	37,699	38,131	42,713	45,387	63,719	58,999
Total income	473,564	475,595	486,844	482,500	454,162	503,405	506,966	530,311
Operating expenses	(191,398)	(202,047)	(198,556)	(200,524)	(193,440)	(206,641)	(204,239)	(205,576)
Net operating income	282,166	273,549	288,288	281,976	260,722	296,763	302,727	324,735
Net loan-loss provisions	(89,852)	(84,920)	(90,252)	(93,034)	(77,584)	(80,828)	(83,231)	(106,535)
Other gains (losses) and provisions	16,034	23,790	14,617	23,614	28,393	(417)	11,726	10,140
Underlying profit before tax	208,348	212,419	212,652	212,555	211,531	215,518	231,222	228,340
Underlying consolidated profit	164,447	171,185	169,725	174,910	165,949	182,169	183,336	190,253
Underlying attributable profit	111,006	116,570	117,196	118,562	112,355	125,176	126,756	130,587

2018 2019

1,470,585 1,466,440

320,592 317,587

127,326 210,818

1,918,503 1,994,844

(792,525) (809,897)

1,125,978 1,184,948

(358,059) (348,178)

78,054 49,841

845,974 886,611

680,267 721,707

463,334 494,874

108

ArgentinaArgentina (EUR mn)

EUR mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
Net interest income	214	234	(6)	327	213	298	180	250
Net fee income	129	133	(6)	192	116	125	88	118
Gains (losses) on financial transactions and other	34	63	(58)	(46)	2	(33)	(31)	(8)
Total income	377	430	(70)	472	331	389	237	359
Operating expenses	(219)	(208)	(1)	(324)	(202)	(229)	(122)	(209)
Net operating income	158	222	(71)	148	129	161	115	150
Net loan-loss provisions	(49)	(75)	(7)	(99)	(73)	(70)	(39)	(53)
Other gains (losses) and provisions	(17)	(41)	4	9	(22)	3	(28)	(54)
Underlying profit before tax	92	107	(73)	58	34	94	47	43
Underlying consolidated profit	66	71	(71)	17	10	63	24	47
Underlying attributable profit	66	71	(71)	17	10	63	23	47

2018 2019

768 940

448 446

1. (70)

1,209 1,316

1. (762)

458 554

1. (235)

1. (101)

183 217

1. 145

1. 144

109

ArgentinaArgentina	(ARS mn)
ARS mn
		Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19	2018	2019
Net interest income		5,172	6,385	7,820	8,507	10,117	14,548	18,638	19,924	27,885	63,227
Net fee income		3,121	3,660	4,472	5,022	5,486	6,131	8,976	9,403	16,275	29,996
Gains (losses) on financial transactions and other	824	1,683	(799)	(1,972)	102	(1,596)	(2,372)	(847)	(265)	(4,713)
Total income		9,117	11,729	11,492	11,557	15,704	19,083	25,243	28,480	43,896	88,510
Operating expenses	(5,291)	(5,722)	(7,738)	(8,523)	(9,602)	(11,210)	(13,861)	(16,583)	(27,275)	(51,256)
Net operating income	3,826	6,006	3,755	3,034	6,102	7,872	11,382	11,897	16,621	37,254
Net loan-loss provisions	(1,196)	(2,021)	(2,546)	(2,615)	(3,441)	(3,459)	(4,538)	(4,391)	(8,379)	(15,829)
Other gains (losses) and provisions	(411)	(1,077)	(849)	721	(1,067)	131	(2,040)	(3,831)	(1,616)	(6,807)
Underlying profit before tax	2,218	2,908	360	1,140	1,594	4,544	4,805	3,674	6,626	14,617
Underlying consolidated profit	1,600	1,950	(644)	99	497	3,056	2,574	3,636	3,005	9,762
Underlying attributable profit	1,589	1,935	(649)	107	490	3,043	2,519	3,600	2,982	9,653

110

Other South America (EUR mn)

Other So th America

EUR mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
Net interest income	112	106	100	103	109	108	112	108
Net fee income	29	29	31	38	29	32	44	34
Gains (losses) on financial transactions and other	7	11	9	8	8	9	16	10
Total income	148	146	141	150	146	149	172	153
Operating expenses	(70)	(65)	(59)	(65)	(63)	(64)	(67)	(64)
Net operating income	78	81	81	84	83	85	105	88
Net loan-loss provisions	(17)	(9)	(22)	(22)	(18)	(20)	(18)	(20)
Other gains (losses) and provisions	(3)	(2)	(2)	(18)	(2)	(1)	(2)	(2)
Underlying profit before tax	59	71	58	44	63	64	86	66
Underlying consolidated profit	31	55	51	29	47	48	64	54
Underlying attributable profit	31	55	51	29	47	47	64	54

2018 2019

421 437

128 138

36 43

1. 619

1. (257)

1. 362

1. (75)

1. (7)

231 280

1. 213

1. 212

111

Other South America (Constant EUR mn)
Other So th America
Constant EUR mn
	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19	2018	2019
Net interest income	104	99	94	99	105	107	113	113	397	437
Net fee income	27	27	30	37	27	31	44	36	121	138
Gains (losses) on financial transactions and other	7	10	9	8	8	9	16	10	34	43
Total income	138	137	134	144	140	148	172	159	552	619
Operating expenses	(65)	(61)	(56)	(62)	(60)	(63)	(67)	(67)	(244)	(257)
Net operating income	73	76	78	82	80	85	106	92	308	362
Net loan-loss provisions	(16)	(7)	(20)	(21)	(17)	(20)	(18)	(21)	(64)	(75)
Other gains (losses) and provisions	(2)	(2)	(2)	(18)	(2)	(1)	(2)	(3)	(24)	(7)
Underlying profit before tax	55	67	56	43	61	64	86	69	220	280
Underlying consolidated profit	28	52	49	28	45	47	64	56	157	213
Underlying attributable profit	28	52	49	28	45	47	64	56	155	212

112

Santander Global PlatformLATFORM	(EUR mn)
SANTANDER GLOBAL
EUR mn
	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19	2018	2019
Net interest income	18	20	20	20	22	23	23	23	79	92
Net fee income	1	1	1	4	2	1	2	2	7	6
Gains (losses) on financial transactions and other	(4)	(3)	(3)	(2)	(5)	(4)	(1)	(7)	(12)	(17)
Total income	16	18	19	21	19	20	24	18	74	81
Operating expenses	(23)	(39)	(32)	(49)	(41)	(67)	(60)	(72)	(142)	(240)
Net operating income	(7)	(21)	(13)	(28)	(22)	(47)	(36)	(54)	(68)	(159)
Net loan-loss provisions	0	(0)	(0)	(0)	(0)	(0)	(0)	(0)	(0)	(1)
Other gains (losses) and provisions	(1)	(0)	(1)	(0)	(1)	(0)	(1)	(4)	(2)	(6)
Underlying profit before tax	(7)	(21)	(13)	(28)	(23)	(47)	(37)	(58)	(70)	(166)
Underlying consolidated profit	(9)	(14)	(10)	(22)	(11)	(40)	(26)	(43)	(54)	(120)
Underlying attributable profit	(9)	(14)	(10)	(22)	(11)	(40)	(26)	(43)	(54)	(120)

113

Corporate Centre (EUR mn)

CORPORATE CENTRE

EUR mn

	Q1'18	Q2'18	Q3'18	Q4'18	Q1'19	Q2'19	Q3'19	Q4'19
Net interest income	(234)	(243)	(251)	(259)	(296)	(304)	(319)	(333)
Net fee income	(9)	(9)	(24)	(28)	(14)	(13)	(9)	(15)
Gains (losses) on financial transactions and other	7	(7)	9	(10)	(90)	(106)	(85)	(34)
Total income	(236)	(258)	(266)	(297)	(399)	(423)	(413)	(381)
Operating expenses	(105)	(107)	(107)	(106)	(97)	(96)	(90)	(89)
Net operating income	(341)	(365)	(373)	(403)	(497)	(519)	(504)	(471)
Net loan-loss provisions	(37)	(30)	(28)	(21)	(8)	(5)	(14)	(10)
Other gains (losses) and provisions	(43)	(50)	(55)	47	(55)	(72)	(61)	(49)
Underlying profit before tax	(420)	(446)	(456)	(377)	(559)	(595)	(579)	(529)
Underlying consolidated profit	(416)	(468)	(450)	(351)	(526)	(592)	(529)	(458)
Underlying attributable profit	(415)	(469)	(450)	(352)	(517)	(592)	(529)	(459)

2018 2019

1. (1,252)

1. (50)

1. (315)

(1,057) (1,617)

1. (373)

(1,483) (1,990)

1. (36)

1. (237)

(1,699) (2,262)

(1,685) (2,105)

(1,686) (2,096)

114

Glossary

115

Glossary - Acronyms

AFS: Available for sale	LLPs: Loan-loss provisions	ROF: Gains on financial transactions
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
bp: basic point	MDR: Merchant Discount Rate	RWA: Risk-weighted assets
CET1: Common equity tier 1	MXN: Mexican Pesos	SBNA: Santander Bank NA
C&I: Commercial and Industrial	n.a.: Not available	SCF: Santander Consumer Finance
CIB: Corporate & Investment Bank	NII: Net interest income	SC USA: Santander Consumer USA
CoE: Cost of Equity	NIM: Net interest margin	SME: Small and Medium Enterprises
DGF: Deposit guarantee fund	n.m.: Not meaningful	SRF: Single Resolution Fund
DPS: Dividend per share	NPL: Non-performing loans	ST: Short term
GDP: Gross domestic product	PBT: Profit before tax	SVR: Standard variable rate
GTS: Global trade services	P&L: Profit and loss	TDR: Troubled debt restructuring
FL: Fully-loaded	pp: percentage point	TLAC: Total loss absorbing capacity
FX: Foreign exchange	PPP: Pre-provision profit	TNAV: Tangible net asset value
EPS: Earning per share	QoQ: Quarter-on-Quarter	UF: Unidad de fomento (Chile)
ESG: Environmental, social and governance	RE: Real Estate	YoY: Year-on-Year
LTV: Loan to Value	Repos: Repurchase agreements	UX: User experience
LLPs: Loan-loss provisions

116

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

Efficiency: Operating expenses / gross income. Operating expenses defined as general administrative expenses + amortisations

CREDIT RISK

NPL ratio: Non-performing loans and customer advances, customer guarantees and contingent liabilities / total risk. Total risk is defined as: normal and non- performing balances of customer loans and advances, customer guarantees and contingent liabilities

NPL coverage ratio: Provisions to cover losses due to impairment of customer loans and advances, customer guarantees and contingent liabilities / non- performing balances of customer loans and advances, customer guarantees and contingent liabilities

Cost of credit: Provisions to cover losses due to impairment of loans in the last 12 months / average customer loans and advances of the last 12 months

CAPITALISATION

Tangible net asset value per share - TNAVps: Tangible stockholders' equity / number of shares (excluding treasury shares). Tangible stockholders' equity calculated as shareholders equity + accumulated other comprehensive income - intangible assets

Notes: 1) The averages for the RoTE and RoRWA denominators are calculated on the basis of 13 months from December to December.

1. For periods of less than a year, and in the event of non-recurring results existing, the profit used to calculate the RoTE is the annualised underlying attributable profit (excluding non-recurring results), to which are added non-recurring results without annualising them.
2. For periods of less than a year, and in the event of non-recurring results existing, the profit used to calculate the RoRWA is the annualised underlying consolidated result (excluding non-recurring results), to which is added non-recurring results without annualising them.
3. The risk-weighted assets included in the RoRWA denominator are calculated in accordance with the criteria defined by the Capital Requirements Regulation (CRR).

117

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