Banco Santander S A : Half-Yearly Financial Report (UK)

BANCO SANTANDER, S.A.

HALF-YEARLY FINANCIAL REPORT

FOR THE HALF-YEAR ENDED 30 JUNE 2022

BANCO SANTANDER, S.A.

________________________

TABLE OF CONTENTS

Part 1. Interim consolidated directors' report	3
Part 2. Interim condensed consolidated financial statements	100
Part 3. Supplemental information	163

January - June	2022
Interim Consolidated Directors' Report
	Index
		KEY CONSOLIDATED DATA	3
		BUSINESS MODEL	5
		GROUP FINANCIAL INFORMATION	6
		Group performance	6
		Income statement and balance sheet	8
		Solvency ratios	17
		Risk management	18
		General background	21
		FINANCIAL INFORMATION BY SEGMENTS	22
		Primary segments	22
		Secondary segments	39
		RESPONSIBLE BANKING	47
		CORPORATE GOVERNANCE	49
		THE SANTANDER SHARE	51
		APPENDIX	53
		Financial information	54
		Alternative Performance Measures	75
		Interim condensed consolidated financial statements	85
		Glossary	88
		Important information	89
		Main risks and uncertainties	91
		Other disclosures required by the Bank of Spain	92

This report was approved by the board of directors on 27 July 2022, following a favourable report from the audit committee. Important information regarding this report can be found on pages 89 and 90.

Key consolidated data	Group financial	Financial information	Responsible banking
Corporate governance	Appendix
Business model		information	by segment	Santander share
Key consolidated data
BALANCE SHEET (EUR million)		Jun-22	Mar-22	%	Jun-22	Jun-21	%	Dec-21
Total assets		1,722,840	1,666,012	3.4	1,722,840		1,568,636	9.8	1,595,835
Loans and advances to customers	1,037,721	1,011,497	2.6	1,037,721		954,518	8.7	972,682
Customer deposits		973,787	957,820	1.7	973,787		894,127	8.9	918,344
Total funds		1,204,407	1,196,544	0.7	1,204,407		1,121,969	7.3	1,153,656
Total equity		97,462	99,378	(1.9)	97,462		95,745	1.8	97,053
Note: Total funds includes customer deposits, mutual funds, pension funds and managed portfolios
INCOME STATEMENT (EUR million)	Q2'22	Q1'22	%	H1'22	H1'21	%	2021
Net interest income		9,554	8,855	7.9	18,409		16,196	13.7	33,370
Total income		12,815	12,305	4.1	25,120		22,695	10.7	46,404
Net operating income		6,915	6,770	2.1	13,685		12,318	11.1	24,989
Profit before tax		3,744	4,171	(10.2)	7,915		6,914	14.5	14,547
Profit attributable to the parent		2,351	2,543	(7.6)	4,894		3,675	33.2	8,124
Changes in constant euros:
Q2'22 / Q1'22: NII: +4.0%; Total income: +0.2%; Net operating income: -2.6%; Profit before tax: -14.4%; Attributable profit: -11.9%
H1'22 / H1'21: NII: +6.9%; Total income: +4.1%; Net operating income: +3.1%; Profit before taxes: +4.4%; Attributable profit: +20.8%
EPS, PROFITABILITY AND EFFICIENCY (%)	Q2'22	Q1'22	%	H1'22	H1'21	%	2021
EPS (euros)		0.131	0.141	(7.2)	0.272		0.197	38.1	0.438
RoE		10.44	11.49		10.98		9.53		9.66
RoTE		13.10	14.21		13.69		11.82		11.96
RoA		0.63	0.71		0.66		0.61		0.62
RoRWA		1.76	1.95		1.86		1.66		1.69
Efficiency ratio		46.0	45.0		45.5		45.7		46.2
UNDERLYING INCOME STATEMENT (1) (EUR million)	Q2'22	Q1'22	%	H1'22	H1'21	%	2021
Net interest income		9,554	8,855	7.9	18,409		16,196	13.7	33,370
Total income		12,815	12,305	4.1	25,120		22,695	10.7	46,404
Net operating income		6,915	6,770	2.1	13,685		12,318	11.1	24,989
Profit before tax		3,744	4,171	(10.2)	7,915		7,628	3.8	15,260
Profit attributable to the parent		2,351	2,543	(7.6)	4,894		4,205	16.4	8,654
Changes in constant euros:
Q2'22 / Q1'22: NII: +4.0%; Total income: +0.2%; Net operating income: -2.6%; Profit before tax: -14.4%; Attributable profit: -11.9%
H1'22 / H1'21: NII: +6.9%; Total income: +4.1%; Net operating income: +3.1%; Profit before tax: -4.8%; Attributable profit: +6.7%
UNDERLYING EPS AND PROFITABILITY (1) (%)	Q2'22	Q1'22	%	H1'22	H1'21	%	2021
Underlying EPS (euros)		0.131	0.141	(7.2)	0.272		0.227	19.5	0.468
Underlying RoE		10.44	11.49		10.98		10.17		10.29
Underlying RoTE		13.10	14.21		13.69		12.62		12.73
Underlying RoA		0.63	0.71		0.66		0.65		0.65
Underlying RoRWA		1.76	1.95		1.86		1.75		1.78

January - June 2022

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