SANTANDER CONSUMER USA HOLDINGS INC. (Exact name of registrant as specified in its charter)

Transcription

1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 31, 2018 SANTANDER CONSUMER USA HOLDINGS INC. (Exact name of registrant as specified in its charter) Delaware (State or other Jurisdiction of Incorporation) (Commission File Number) (IRS Employer Identification No.) 1601 Elm St. Suite #800 Dallas, Texas (Address of Principal Executive Offices) (Zip Code) Registrant s telephone number, including area code: (214) n/a (Former name or former address if changed since last report.) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: Written communications pursuant to Rule 425 under the Securities Act (17 CFR ) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR e-4(c)) Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR ) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR b-2). Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

2 Item Results of Operations and Financial Condition. On October 31, 2018, Santander Consumer USA Holdings Inc. (the Company ) issued a press release announcing its financial results for the quarter ended September 30, Copies of the Company s press release and an investor presentation for the quarter ended September 30, 2018 are attached hereto as Exhibits 99.1 and 99.2, respectively, and incorporated herein by reference. Note: Information in this report (including Exhibits 99.1 and 99.2) furnished pursuant to Item 2.02 shall not be deemed to be filed for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section. Item Financial Statements and Exhibits. Exhibit No. Description Exhibit 99.1 Press Release of Santander Consumer USA Holdings Inc., dated October 31, 2018 Exhibit 99.2 Presentation Materials of Santander Consumer USA Holdings Inc., dated October 31,

3 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. SANTANDER CONSUMER USA HOLDINGS INC. Dated: October 31, 2018 By: /s/ Christopher Pfirrman Name: Christopher Pfirrman Title: Chief Legal Officer

4 Exhibit 99.1 Contacts: Investor Relations Evan Black Media Relations Laurie Kight Santander Consumer USA Holdings Inc. Reports Third Quarter 2018 Net Income of $232 million TotalAutoOriginationsof$7.6BillionIncreased52%YoY;SantanderHoldingsUSATerminated2015WrittenAgreement,CompanyExecutesOnPreviouslyAnnouncedShareRepurchasePlan anddeclares$0.20persharecashdividend Dallas, TX (October 31, 2018) Santander Consumer USA Holdings Inc. (NYSE: SC) ( SC ) today announced net income for the third quarter ended September 30, 2018 ( Q ) of $232 million, or $0.64 per diluted common share. The Company has declared a cash dividend of $0.20 per share, to be paid on November 15, 2018, to shareholders of record as of the close of business on November 10, Management Quotes Ourperformanceinthethirdquarterdemonstratesthecontinuedstrengthinourbusiness, said Scott Powell, SC President and CEO, who is also CEO of Santander US. Earningsincreased 17percentversusthethirdquarterof2017,withsignificantoriginationsgrowth.WefullylaunchedourprogramtooriginateSCautoloansatSantanderBank,creatingvalueforbothentitiesand forfiatchrysler.santanderholdingsusaterminatedits2015writtenagreementwiththefederalreserve,whichisamongthemostsignificantmilestoneswe'vereachedinresolvingourlegacy regulatorychallenges. Juan Carlos Alvarez, SC Chief Financial Officer, added, Asseasonalpressuresincreaseinthesecondhalfoftheyear,ourcreditperformanceremainsstableandoriginationsaresolid.During thethirdquarterwebegantoexecuteonourpreviouslyannouncedinauguralsharerepurchaseplan,targetingamoreefficientcapitalbase,andremainingfocusedonexpensemanagementand moreefficientfunding. Q Highlights (variancescomparedtothethirdquarterof2017( Q32017 ),unlessotherwisenoted): Total auto originations of $7.6 billion, up 52% Core retail auto loan originations of $2.3 billion, up 49% Chrysler Capital loan originations of $2.4 billion, up 34% Chrysler Capital lease originations of $2.9 billion, up 73% Chrysler average quarterly penetration rate of 31%, up from 21% during the same quarter last year Full roll-out of Santander Bank, N.A. program in July leading to $685 million in originations Net finance and other interest income of $1.1 billion, up 5% Retail Installment Contract RIC gross charge-off ratio of 17.6% down 60 basis points RIC net charge-off ratio of 8.8%, down 50 basis points Auction-plus recovery rate of 50.0%, up 120 basis points 59-plus Delinquency ratio of 5.5%, down 30 basis points Troubled Debt Restructuring ( TDR ) balance of $5.8 billion, down $339 million vs. June 30, 2018 Return on average assets of 2.2%, up from 2.0% Issued $4.5 billion in asset-backed securities ABS Expense ratio of 2.1%, down from 2.4 % Common equity tier 1 ( CET1 ) ratio of 16.4% down from 16.9% vs. June 30,

5 Net finance and other interest income increased 5 percent to $1.14 billion in Q from $1.09 billion in Q3 2017, primarily driven by higher lease income partially offset by higher interest expenses. Servicing fee income decreased 8 percent to $26 million in Q3 2018, from $29 million in Q3 2017, driven by lower serviced for others balances. SC's serviced for others portfolio of $9.2 billion as of Q decreased 8 percent from $10.0 billion the prior year quarter. RIC delinquency ratio 3 of 5.5 percent in Q decreased compared to 5.8 percent in Q RIC net charge-off ratio 4 decreased to 8.8 percent in Q from 9.3 percent in Q Provision for credit losses of $598 million in Q were up from $571 million the prior year quarter. Allowance ratio 5 decreased 40 basis points, to 11.7 percent at the end of Q3 2018, from 12.1 percent at the end of Q Recorded net investment losses of $87 million in Q3 2018, compared to net investment losses of $53 million in Q3 2017, which during Q included a pretax gain of $36 million from the sale of the majority of the Company's legacy RV/Marine portfolio. The current period losses were primarily driven by held for sale accounting for SC's personal lending portfolio 6. During Q SC incurred $272 million of operating expenses, down 9 percent from $298 million in Q SC's expense ratio of 2.1 percent for the quarter, was down compared to 2.4 percent during the same period last year. Correction of Immaterial Errors In Prior Period Financial Statements In connection with preparing its financial statements for the quarter ended September 30, 2018, the Company identified and corrected two immaterial errors. To correct the errors, the Company prepared its consolidated financial statements as of and for the period ended September 30, 2018, on a consolidated basis and revised its consolidated financial statements as of and for the period ended September 30, The matters giving rise to the corrections are summarized below: For core retail auto loans originated after January 1, 2017, as previously disclosed, the Company had determined past due status using a 90% required minimum payment threshold, while continuing to use a 50% threshold to report past due status on core retail auto loans originated prior to that date. In Q3 2018, the Company determined that historically a 90% required minimum payment threshold should be used for all loans and our prior reporting was in error. Therefore, the consolidated financial statements and related delinquency disclosures have been corrected to be on that basis. On January 1, 2017, as previously disclosed, the Company prospectively began classifying as nonaccrual loans (1) any loans designated as TDRs and 60+ days past due at the time of a TDR and (2) any loans less than 60 days past due at the time of TDR event that had a third instance of deferral. These TDR loans were also placed on a cost recovery basis from that time forward and not returned to accrual status until there was sustained evidence of collectability. In Q3 2018, the Company determined the changes in both nonaccrual designation and cost recovery basis were in error and, in turn, has corrected the error by reversing the impacts of the change going back to January 1, A Financial Supplement aggregating all revised financials is available in the Investor Relations section of the Company's website at Choose Events and select the information pertaining to the Q32018SCEarningsConferenceCall. *Prior periods have been revised according to the 8-K filed on October 31, See Financial Supplement on the SC Investor Relations website for further details. 1 The timing and amount of any capital actions will depend on various factors, including the business plans and financial performance of both SC and SHUSA, as well as market conditions, and any SC capital distribution is subject to approval of the Company's and SHUSA's respective boards of directors. 2 Includes Finance receivables held for investment, Finance receivables held for sale and Leased vehicles. 3 Delinquency ratio is defined as the ratio of end of period delinquent principal over 59 days to end of period gross balance of the respective portfolio, excludes capital leases. 4 Net charge-off ratio stated on a recorded investment basis, which is unpaid principal balance adjusted for unaccreted net discounts, subvention and origination costs. 5 Ratio for allowance for credit losses excludes end of period balances on purchased receivables portfolio of $33 million and finance receivables and personal loans held for sale of $0.9 billion. 6 The current period losses were primarily driven by $87 million of lower of cost or market adjustments related to the held for sale personal lending portfolio, comprised of $100 million in customer default activity, partially offset by a $13 million increase in market discount, consistent with typical seasonal patterns. 2

6 Conference Call Information SC will host a conference call and webcast to discuss its Q results and other general matters at 9:00 a.m. Eastern Time on Wednesday, October 31, The conference call will be accessible by dialing (U.S. domestic), or (international), conference ID Please join 10 minutes prior to the start of the call. The conference call will also be accessible via live audio webcast through the Investor Relations section of SC's corporate website at Choose "Events" and select the information pertaining to the Q SC Earnings Conference Call. Additionally, there will be slides accompanying the webcast. Please allow at least 15 minutes prior to the call to register, download and install any necessary software prior to the call. For those unable to listen to the live broadcast, a replay of the call will be available on the Company's website or by dialing (U.S. domestic), or (international), conference ID , approximately two hours after the conference call. An audio webcast of the call and investor presentation will also be archived on the Investor Relations section of SC's corporate website at under "Events". Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions, or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as anticipates, believes, can, could, may, predicts, potential, should, will, estimates, plans, projects, continuing, ongoing, expects, intends, and similar words or phrases. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements are not guarantees of future performance and involve risks and uncertainties that are subject to change based on various important factors, some of which are beyond our control. For additional discussion of these risks, refer to the section entitled Risk Factors and elsewhere in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q filed by us with the U.S. Securities and Exchange Commission (SEC). Among the factors that could cause the forward-looking statements in this press release and/or our financial performance to differ materially from that suggested by the forward-looking statements are (a) the inherent limitations in internal control over financial reporting; (b) our ability to remediate any material weaknesses in internal controls over financial reporting completely and in a timely manner; (c) continually changing federal, state, and local laws and regulations could materially adversely affect our business; (d) adverse economic conditions in the United States and worldwide may negatively impact our results; (e) our business could suffer if our access to funding is reduced; (f) significant risks we face implementing our growth strategy, some of which are outside our control; (g) unexpected costs and delays in connection with exiting our personal lending business; (h) our agreement with FCA US LLC may not result in currently anticipated levels of growth and is subject to certain conditions that could result in termination of the agreement; (i) our business could suffer if we are unsuccessful in developing and maintaining relationships with automobile dealerships; (j) our financial condition, liquidity, and results of operations depend on the credit performance of our loans; (k) loss of our key management or other personnel, or an inability to attract such management and personnel; (l) certain regulations, including but not limited to oversight by the Office of the Comptroller of the Currency, the Consumer Financial Protection Bureau, the European Central Bank, and the Federal Reserve, whose oversight and regulation may limit certain of our activities, including the timing and amount of dividends and other limitations on our business; and (m) future changes in our relationship with SHUSA and Banco Santander that could adversely affect our operations. If one or more of the factors affecting our forward-looking information and statements proves incorrect, our actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements. Therefore, we caution the reader not to place undue reliance on any forward-looking information or statements. The effect of these factors is difficult to predict. Factors other than these also could adversely affect our results, and the reader should not consider these factors to be a complete set of all potential risks or uncertainties as new factors emerge from time to time. Any forward-looking statements only speak as of the date of this document, and we undertake no obligation to update any forward-looking information or statements, whether written or oral, to reflect any change, except as required by law. All forward-looking statements attributable to us are expressly qualified by these cautionary statements. About Santander Consumer USA Holdings Inc. Santander Consumer USA Holdings Inc. (NYSE: SC) ( SC ) is a full-service consumer finance company focused on vehicle finance, third-party servicing and delivering superior service to our more than 2.7 million customers across the full credit spectrum. The company, which began originating retail installment contracts in 1997, has an average managed asset portfolio of approximately $52 billion (as of September 30, 2018 ), and is headquartered in Dallas. ( ) 3

7 Santander Consumer USA Holdings Inc. Financial Supplement Third Quarter 2018 Table of Contents Table 1: Condensed Consolidated Balance Sheets 5 Table 2: Condensed Consolidated Statements of Income 6 Table 3: Other Financial Information 7 Table 4: Credit Quality 9 Table 5: Originations 11 Table 6: Asset Sales 12 Table 7: Ending Portfolio 13 Table 8: Reconciliation of Non-GAAP Measures 14 4

8 Table 1: Condensed Consolidated Balance Sheets Assets September 30, 2018 (Unaudited, Dollars in thousands) December 31, 2017 (As Revised) Cash and cash equivalents $ 81,435 $ 527,805 Finance receivables held for sale, net 933,380 2,210,421 Finance receivables held for investment, net 24,839,583 22,394,286 Restricted cash 2,130,130 2,553,902 Accrued interest receivable 304, ,618 Leased vehicles, net 13,183,793 10,160,327 Furniture and equipment, net 62,852 69,609 Federal, state and other income taxes receivable 99,308 95,060 Related party taxes receivable Goodwill 74,056 74,056 Intangible assets 32,177 29,734 Due from affiliates 9,814 33,270 Other assets 1,055, ,244 Total assets $ 42,806,955 $ 39,402,799 Liabilities and Equity Liabilities: Notes payable credit facilities $ 5,632,053 $ 4,848,316 Notes payable secured structured financings 24,867,297 22,557,895 Notes payable related party 3,003,529 3,754,223 Accrued interest payable 44,555 38,529 Accounts payable and accrued expenses 453, ,531 Deferred tax liabilities, net 1,138, ,415 Due to affiliates 69,804 82,382 Other liabilities 456, ,806 Total liabilities $ 35,665,740 $ 32,937,097 Equity: Common stock, $0.01 par value 3,593 3,605 Additional paid-in capital 1,647,738 1,681,558 Accumulated other comprehensive income, net 56,601 44,262 Retained earnings 5,433,283 4,736,277 Total stockholders equity $ 7,141,215 $ 6,465,702 Total liabilities and equity $ 42,806,955 $ 39,402,799 5

9 Table 2: Condensed Consolidated Statements of Income Three Months Ended September 30, Nine Months Ended September 30, (As Revised) (As Revised) (Unaudited, Dollars in thousands, except per share amounts) Interest on finance receivables and loans $ 1,227,129 $ 1,218,299 $ 3,606,675 $ 3,680,533 Leased vehicle income 583, ,932 1,625,272 1,305,429 Other finance and interest income 8,522 6,385 24,153 15,415 Total finance and other interest income 1,818,748 1,682,616 5,256,100 5,001,377 Interest expense 285, , , ,134 Leased vehicle expense 389, ,581 1,108, ,976 Net finance and other interest income 1,144,089 1,092,361 3,347,442 3,362,267 Provision for credit losses 597, ,012 1,514,799 1,765,518 Net finance and other interest income after provision for credit losses 546, ,349 1,832,643 1,596,749 Profit sharing 1,652 5,945 18,882 22,333 Net finance and other interest income after provision for credit losses and profit sharing 544, ,404 1,813,761 1,574,416 Investment losses, net (86,320) (52,592) (255,474) (228,513) Servicing fee income 26,409 28,673 80,129 92,310 Fees, commissions, and other 84,552 82, , ,025 Total other income 24,641 58,947 72, ,822 Compensation expense 119, , , ,325 Repossession expense 62,189 66, , ,445 Other operating costs 90,431 96, , ,626 Total operating expenses 272, , , ,396 Income before income taxes 296, ,448 1,048, ,842 Income tax expense 64,874 77, , ,484 Net income $ 231,948 $ 198,569 $ 811,588 $ 595,358 Net income per common share (basic) $ 0.64 $ 0.55 $ 2.25 $ 1.66 Net income per common share (diluted) $ 0.64 $ 0.55 $ 2.24 $ 1.65 Dividend declared per common share $ 0.20 $ $ 0.30 $ Weighted average common shares (basic) 360,725, ,619, ,898, ,397,063 Weighted average common shares (diluted) 361,445, ,460, ,714, ,069,449 6

10 Table 3: Other Financial Information Three Months Ended September 30, Nine Months Ended September 30, Ratios (Unaudited, Dollars in thousands) (As Revised) (As Revised) Yield on individually acquired retail installment contracts 16.3 % 16.0% 16.1 % 16.0% Yield on purchased receivables portfolios 23.2 % 17.4% 25.1 % 20.1% Yield on receivables from dealers 3.4 % 6.0% 3.3 % 5.7% Yield on personal loans (1) 24.9 % 24.4% 24.6 % 24.9% Yield on earning assets (2) 13.3 % 13.3% 13.3 % 13.5% Cost of debt (3) 3.5 % 3.2% 3.3 % 3.0% Net interest margin (4) 10.6 % 10.8% 10.7 % 11.2% Expense ratio (5) 2.1 % 2.4% 2.2 % 2.3% Return on average assets (6) 2.2 % 2.0% 2.6 % 2.0% Return on average equity (7) 13.1 % 13.8% 15.8 % 14.4% Net charge-off ratio on individually acquired retail installment contracts (8) 8.8 % 9.3% 7.7 % 8.6% Net charge-off ratio on purchased receivables portfolios (8) (3.9)% 2.6% (4.7)% 1.2% Net charge-off ratio on personal loans (8) 9.3 % 67.2% 37.8 % 62.7% Net charge-off ratio (8) 8.8 % 9.3% 7.7 % 8.6% Delinquency ratio on individually acquired retail installment contracts held for investment, end of period (9) 5.5 % 5.8% 5.5 % 5.8% Delinquency ratio on personal loans, end of period (9) 13.3 % 13.8% 13.3 % 13.8% Delinquency ratio on loans held for investment, end of period (9) 5.5 % 5.8% 5.5 % 5.8% Allowance ratio (10) 11.7 % 13.0% 11.7 % 13.0% Common stock dividend payout ratio (11) 31.3 % 13.3 % Common Equity Tier 1 capital ratio (12) 16.4 % 15.1% 16.4 % 15.1% Other Financial Information Charge-offs, net of recoveries, on individually acquired retail installment contracts $ 613,210 $ 623,631 $ 1,560,144 $ 1,745,287 Charge-offs, net of recoveries, on purchased receivables portfolios (331) 769 (1,324) 1,541 Charge-offs, net of recoveries, on personal loans 84 1,771 1,348 6,550 Charge-offs, net of recoveries, on capital leases 227 1, ,785 Total charge-offs, net of recoveries $ 613,190 $ 627,364 $ 1,561,107 $ 1,757,163 End of period delinquent principal over 59 days, individually acquired retail installment contracts held for investment 1,560,736 1,537,373 1,560,736 1,537,373 End of period delinquent principal over 59 days, personal loans 177, , , ,919 End of period delinquent principal over 59 days, loans held for investment 1,562,486 1,541,123 1,562,486 1,541,123 End of period assets covered by allowance for credit losses 28,281,165 26,389,583 28,281,165 26,389,583 End of period gross individually acquired retail installment contracts held for investment 28,243,007 26,342,678 28,243,007 26,342,678 End of period gross personal loans 1,336,664 1,337,114 1,336,664 1,337,114 End of period gross finance receivables and loans held for investment 28,293,857 26,416,774 28,293,857 26,416,774 End of period gross finance receivables, loans, and leases held for investment 42,700,297 37,439,821 42,700,297 37,439,821 Average gross individually acquired retail installment contracts held for investment 27,919,080 26,784,161 26,928,172 26,998,499 Average gross personal loans held for investment 3,623 10,549 4,761 13,935 Average gross individually acquired retail installment contracts held for investment and held for sale $ 28,060,492 $ 28,165,822 $ 27,615,084 $ 28,204,075 Average gross purchased receivables portfolios 34, ,245 37, ,792 Average gross receivables from dealers 15,070 53,715 15,363 63,401 Average gross personal loans 1,350,852 1,367,445 1,398,555 1,419,223 Average gross capital leases 20,034 22,544 21,183 26,415 Average gross finance receivables and loans $ 29,480,507 $ 29,729,771 $ 29,087,730 $ 29,889,906 Average gross operating leases 13,607,010 10,710,941 12,458,508 10,257,752 Average gross finance receivables, loans, and leases 43,087,517 40,440,712 41,546,238 40,147,658 Average managed assets 52,472,270 50,019,800 50,594,560 50,576,757 Average total assets 41,985,751 39,476,811 40,900,603 39,172,967 Average debt 32,706,778 31,554,026 32,002,094 31,538,355 Average total equity 7,105,340 5,751,987 6,845,767 5,530,123 7

11 (1) Includes Finance and other interest income; excludes fees (2) Yield on earning assets is defined as the ratio of annualized Total finance and other interest income, net of Leased vehicle expense, to Average gross finance receivables, loans and leases (3) Cost of debt is defined as the ratio of annualized Interest expense to Average debt (4) Net interest margin is defined as the ratio of annualized Net finance and other interest income to Average gross finance receivables, loans and leases (5) Expense ratio is defined as the ratio of annualized Operating expenses to Average managed assets (6) Return on average assets is defined as the ratio of annualized Net income to Average total assets (7) Return on average equity is defined as the ratio of annualized Net income to Average total equity (8) Net charge-off ratio is defined as the ratio of annualized Charge-offs, on a recorded investment basis, net of recoveries, to average unpaid principal balance of the respective held-forinvestment portfolio. Effective as of September 30, 2016, the Company records the charge-off activity for certain personal loans within the provision for credit losses due to the reclassification of these loans from held for sale to held for investment. (9) Delinquency ratio is defined as the ratio of End of period Delinquent principal over 59 days to End of period gross balance of the respective portfolio, excludes capital leases (10) Allowance ratio is defined as the ratio of Allowance for credit losses, which excludes impairment on purchased receivables portfolios, to End of period assets covered by allowance for credit losses (11) Common stock dividend payout ratio is defined as the ratio of Dividends declared per share of common stock to Earnings per share attributable to the Company's shareholders. (12) Common Equity Tier 1 Capital ratio is a non-gaap ratio defined as the ratio of Total common equity tier 1 capital to Total risk-weighted assets (for a reconciliation from GAAP to this non-gaap measure, see Reconciliation of Non-GAAP Measures in Table 8 of this release) 8

12 Table 4: Credit Quality The activity in the credit loss allowance for individually acquired retail installment contracts for the three and nine months ended September 30, 2018 and 2017 was as follows (Unaudited,Dollar amountsinthousands): Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 (As Revised) Retail Installment Contracts Acquired Individually Retail Installment Contracts Acquired Individually Allowance for Credit Loss Non-TDR TDR Non-TDR TDR Balance beginning of period $ 1,651,714 $ 1,664,222 $ 1,771,309 $ 1,704,496 Provision for credit losses 380, , , ,677 Charge-offs (701,393) (524,429) (711,495) (507,066) Recoveries 410, , , ,407 Balance end of period $ 1,740,861 $ 1,559,808 $ 1,599,651 $ 1,822,514 Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 (As Revised) Retail Installment Contracts Acquired Individually Retail Installment Contracts Acquired Individually Allowance for Credit Loss Non-TDR TDR Non-TDR TDR Balance beginning of period $ 1,540,315 $ 1,804,132 $ 1,799,760 $ 1,611,295 Provision for credit losses 930, , ,471 1,084,926 Charge-offs (1,962,220) (1,484,482) (2,105,835) (1,459,239) Recoveries 1,232, ,387 1,234, ,532 Balance end of period $ 1,740,861 $ 1,559,808 $ 1,599,651 $ 1,822,514 A summary of delinquencies of our individually acquired retail installment contracts as of September 30, 2018 and December 31, 2017 is as follows (Unaudited,Dollaramountsinthousands): Delinquent Principal September 30, December 31, 2017(As Revised) 1 Principal days past due $ 2,975, % $ 2,953, % Delinquent principal over 59 days 2 1,560, % 1,642, % Total delinquent contracts $ 4,536, % $ 4,596, % Within the total delinquent principal above, retail installment contracts acquired individually held for investment that were placed on nonaccrual status, as of September 30, 2018 and December 31, 2017 (Unaudited,Dollaramountsinthousands): Nonaccrual Principal September 30, December 31, 2017(As Revised) 1 Non-TDR $ 701, % $ 691, % TDR 725, % 806, % Total nonaccrual principal $ 1,426, % $ 1,498, % 9

13 The table below presents the Company s allowance ratio for TDR and non-tdr individually acquired retail installment contracts as of September 30, 2018 and December 31, 2017 (Unaudited, Dollaramountsinthousands): Allowance Ratios September 30, 2018 December 31, 2017 (As Revised) TDR - Unpaid principal balance $ 5,759,094 $ 6,314,035 TDR - Impairment 1,559,808 1,804,132 TDR - Allowance ratio 27.1% 28.6% Non-TDR - Unpaid principal balance $ 22,483,913 $ 19,679,082 Non-TDR - Allowance 1,740,862 1,540,315 Non-TDR Allowance ratio 7.7% 7.8% Total - Unpaid principal balance $ 28,243,007 $ 25,993,117 Total - Allowance 3,300,670 3,344,447 Total - Allowance ratio 11.7% 12.9% 1 Percent of unpaid principal balance. 2 Interest is accrued until 60 days past due in accordance with the Company's account policy for retail installment contracts. 10

14 Table 5: Originations The Company's originations of individually acquired loans and leases, including revolving loans, average APR, and discount were as follows: Three Months Ended Nine Months Ended Three Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 June 30, 2018 Retained Originations (Unaudited, Dollar amounts in thousands) Retail installment contracts $ 4,014,963 $ 2,570,228 $ 11,756,642 $ 8,619,961 $ 4,630,704 Average APR 17.3% 16.1% 17.4% 17.2% 16.8% Average FICO (a) Discount 0.3% 1.2% 0.3% 0.8% 0.004% Personal loans (b) 325, , , , ,088 Average APR 28.8% 25.7% 29.4% 25.7% 27.1% Leased vehicles 2,890,841 1,665,776 7,616,498 4,693,392 2,632,052 Capital lease 2,633 2,477 7,088 $ 4,655 $ 2,058 Total originations retained $ 7,233,557 $ 4,548,260 $ 20,318,764 $ 14,266,552 $ 7,604,902 Sold Originations (c) Retail installment contracts $ $ 757,720 $ 1,826,411 $ 2,550,065 $ 683,935 Average APR % 6.0% 7.3% 6.2% 7.6% Average FICO (d) Total originations sold $ $ 757,720 $ 1,826,411 $ 2,550,065 $ 683,935 (a) (b) Total originations (e) $ 7,233,557 $ 5,305,980 $ 22,145,175 $ 16,816,617 $ 8,288,837 Unpaid principal balance excluded from the weighted average FICO score is $744 million, $311 million, $1.5 billion, $1.2 billion, and $594 million for the three months ended September 30, 2018 and 2017, the nine months ended September 30, 2018 and 2017, and the three months ended June 30, 2018, respectively, as the borrowers on these loans did not have FICO scores at origination. Of these amounts, $80 million, $37 million, $147 million, $95 million, and $77 million, respectively, were commercial loans. Effective as of three months ended December 31, 2017, the Company revised its approach to define origination volumes for Personal Loans to include new originations, gross of paydowns and charge-offs, related to customers who took additional advances on existing accounts (including capitalized late fees, interest and other charges), and newly opened accounts. In the prior periods, the Company reported net balance increases on personal loans as origination volume. Included in the total origination volume is $71 million, $61 million, $155 million, $132 million, and $58 million for the three months ended September 30, 2018 and 2017, the nine months ended September 30, 2018 and 2017, and the three months ended June 30, 2018, respectively, related to newly opened accounts. (c) Only includes assets both originated and sold in the period. Total asset sales for the period are shown in Table 6. (d) Unpaid principal balance excluded from the weighted average FICO score is zero, $93 million, $144 million, $319 million, and $54 million for the three months ended September 30, 2018 and 2017, the nine months ended September 30, 2018 and 2017, and the three months ended June 30, 2018, respectively, as the borrowers on these loans did not have FICO scores at origination. Of these amounts, zero, $26 million, $76 million, $102 million, and $67 million, respectively, were commercial loans. (e) Total originations excludes finance receivables (UPB) of $74,086 purchased from a third party lender during the three months ended September 30, 2018 SBNA Originations Program Beginning in 2018, the Company agreed to provide SBNA with origination support services in connection with the processing, underwriting and purchase of retail loans, primarily from Chrysler dealers. In addition, the Company agreed to perform the servicing for any loans originated on SBNA s behalf. During the three and nine months ended September 30, 2018, the Company facilitated the purchase of $685 million and $738 million of retail installment contacts, respectively. 11

15 Table 6: Asset Sales Asset sales may include assets originated in prior periods. Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 (Unaudited, Dollar amounts in thousands) Retail installment contracts $ 274,609 $ 1,482,134 $ 2,905,922 $ 2,979,033 Average APR 7.5% 6.2% 7.2% 6.2% Average FICO Total asset sales $ 274,609 $ 1,482,134 $ 2,905,922 $ 2,979,033 12

16 Table 7: Ending Portfolio Ending outstanding balance, average APR and remaining unaccreted dealer discount of our held for investment portfolio as of September 30, 2018, and December 31, 2017, are as follows: September 30, 2018 December 31, 2017 ( Unaudited, Dollar amounts in thousands) Retail installment contracts (a) $ 28,275,649 $ 26,036,361 Average APR 16.8% 16.5% Discount 0.9% 1.5% Personal loans $ 3,266 $ 6,887 Average APR 31.7% 31.8% Receivables from dealers $ 14,942 $ 15,787 Average APR 4.1% 4.2% Leased vehicles $ 14,386,490 $ 11,175,602 Capital leases $ 19,950 $ 22,857 (a) Revised for December 31,

17 Table 8: Reconciliation of Non-GAAP Measures September 30, 2018 September 30, 2017 (As Revised) ( Unaudited, Dollar amounts in thousands) Total equity $ 7,141,215 $ 5,873,102 Deduct: Goodwill, intangibles, and other assets, net of deferred tax liabilities 162, ,502 Deduct: Accumulated other comprehensive income (loss), net 56,601 27,481 Tier 1 common capital $ 6,921,971 $ 5,673,119 Risk weighted assets (a) $ 42,256,218 $ 37,609,878 Common Equity Tier 1 capital ratio (b) 16.4% 15.1% (a) Under the banking agencies' risk-based capital guidelines, assets and credit equivalent amounts of derivatives and off-balance sheet exposures are assigned to broad risk categories. The aggregate dollar amount in each risk category is multiplied by the associated risk weight of the category. The resulting weighted values are added together with the measure for market risk, resulting in the Company's total Risk weighted assets. (b) CET1 is calculated under Basel III regulations required as of January 1, The fully phased-in capital ratios are non-gaap financial measures. 14

18 Exhibit 99.2 Third Quarter

19 IMPORTANT INFORMATION 2 Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions, or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as anticipates, believes, can, could, may, predicts, potential, should, will, estimates, plans, projects, continuing, ongoing, expects, intends, and similar words or phrases. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements are not guarantees of future performance and involve risks and uncertainties that are subject to change based on various important factors, some of which are beyond our control. For additional discussion of these risks, refer to the section entitled Risk Factors and elsewhere in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q filed by us with the U.S. Securities and Exchange Commission (SEC). Among the factors that could cause the forward-looking statements in this presentation and/or our financial performance to differ materially from that suggested by the forward-looking statements are: (a) the inherent limitations in internal controls over financial reporting; (b) our ability to remediate any material weaknesses in internal controls over financial reporting completely and in a timely manner; (c) continually changing federal, state, and local laws and regulations could materially adversely affect our business; (d) adverse economic conditions in the United States and worldwide may negatively impact our results; (e) our business could suffer if our access to funding is reduced; (f) significant risks we face implementing our growth strategy, some of which are outside our control; (g) unexpected costs and delays in connection with exiting our personal lending business; (h) our agreement with FCA US LLC may not result in currently anticipated levels of growth, and is subject to certain conditions that could result in termination of the agreement; (i) our business could suffer if we are unsuccessful in developing and maintaining relationships with automobile dealerships; (j) our financial condition, liquidity, and results of operations depend on the credit performance of our loans; (k) loss of our key management or other personnel, or an inability to attract such management and personnel; (l) certain regulations, including but not limited to oversight by the Office of the Comptroller of the Currency, the Consumer Financial Protection Bureau, the European Central Bank, and the Federal Reserve, whose oversight and regulation may limit certain of our activities, including the timing and amount of dividends and other limitations on our business; and (m) future changes in our relationship with Banco Santander which could adversely affect our operations. If one or more of the factors affecting our forward-looking information and statements proves incorrect, our actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements. Therefore, we caution the reader not to place undue reliance on any forward-looking information or statements. The effect of these factors is difficult to predict. Factors other than these also could adversely affect our results, and the reader should not consider these factors to be a complete set of all potential risks or uncertainties. Any forward-looking statements only speak as of the date of this document, and we undertake no obligation to update any forward-looking information or statements, whether written or oral, to reflect any change, except as required by law. All forward-looking statements attributable to us are expressly qualified by these cautionary statements.

20 Q HIGHLIGHTS 3» Net income of $232 million, or $0.64 per diluted common share, up 17% YoY» Total auto originations1 of $7.6 billion, up 52% YoY» Core retail auto loan originations of $2.3 billion, up 49% YoY» Chrysler Capital loan originations of $2.4 billion, up 34% YoY» Chrysler Capital lease originations of $2.9 billion, up 73% YoY» Full roll-out of SBNA originations program in July leading to $685M auto loan originations» Net finance and other interest income of $1.1 billion, up 5% YoY» Retail Installment Contract RIC gross charge-off ratio of 17.6% down 60 basis points» RIC net charge-off ratio of 8.8%, down 50 basis points YoY» Auction-plus recovery rate of 50.0%, up 120 basis points YoY» 59+ delinquency ratio of 5.5%, down 30 basis points YoY» Troubled Debt Restructuring ( TDR ) balance of $5.8 billion, down $339 million vs. June 30, 2018» Return on average assets of 2.2%, up from 2.0% YoY» Issued $4.5 billion in asset-backed securities ABS» Expense ratio of 2.1%, down from 2.4% YoY» Common equity tier 1 ( CET1 ) ratio of 16.4%, down from 16.9% QoQ» Executing on previously announced $200M share repurchase plan» 2015 Written Agreement terminated by the Federal Reserve in August 2018 *Prior periods have been revised according to the 8-K filed on October 31, See financial supplement on the SC Investor Relations website for further details. 1 Includes SBNA Originations

21 ECONOMIC INDICATORS 4 U.S. Auto Sales Consumer Confidence3 Units in Millions Index Q1 1966=100 Max Used Sales Quarterly New Sales Monthly SAAR ORIGINATIONS 5 Min 55 0 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 4 U.S. GDP US Unemployment Statistics5 % Max: 4.2 Max: CREDIT 3.7 Min -4 Min: 3.7 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 1 Edmunds data, one quarter lag, data as of September 30, Bloomberg 3 University of Michigan 4 U.S. Bureau of Economic Analysis, one quarter lag, data as of September 30, U.S. Bureau of Labor Statistics

22 AUTO INDUSTRY ANALYSIS 5 Used Vehicle Indices1 SC Recovery Rates2 Manheim: Seasonally Adjusted JD Power: Not Seasonally Adjusted % Manheim (Left Axis) JDP Used-Vehicle Price Index (Right Axis) 135 SC Auction Only Recovery Rate SC Auction Plus Recovery Rate (Quarterly) % % % % 48.8% 50.0% SEVERITY % % 40% % Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Industry Net Loss Rates3 Industry 60+ Day Delinquency Rates3 % % Subprime Subprime Max 13.6% Max 5.9% 5.0% 8.7% CREDIT Min 1.6% Min 3.3% Aug-08 Aug-10 Aug-12 Aug-14 Aug-16 Aug-18 Aug-08 Aug-10 Aug-12 Aug-14 Aug-16 Aug-18 1 Manheim, Inc.; Indexed to a basis of 100 at 1995 levels; JD Power Used-Vehicle Price Index (not seasonally adjusted) 2 Auction Only - includes all auto-related recoveries including inorganic/purchased receivables from auction lanes only 2 Auction Plus Per the financial statements includes insurance proceeds, bankruptcy/deficiency sales, and timing impacts 3 Standard & Poor s Rating Services (ABS Auto Trust Data one-month lag on data, as of Aug 31, 2018)

23 DIVERSIFIED UNDERWRITING ACROSS THE CREDIT SPECTRUM 6 Originations growth across all channels; fully launched SBNA originations program. Three Months Ended Originations % Variance ($ in Millions) Q Q Q QoQ YoY Total Core Retail Auto $ 2,314 $ 2,589 $ 1,550 (11%) 49% Chrysler Capital Loans (<640)1 1,550 1, (11%) 82% Chrysler Capital Loans ( 640) , (17%) (10%) Total Chrysler Capital Retail $ 2,386 $ 2,755 $ 1,778 (13%) 34% Total Leases2 2,893 2,634 1,668 10% 73% Total Auto Originations3 $ 7,593 $ 7,978 $ 4,996 (5%) 52% Total Personal Lending (4%) 5% Total SC Originations $ 7,918 $ 8,318 $ 5,306 (5%) 49% Asset Sales4 $ 275 $ 1,156 $ 1,482 (76%) (81%) SBNA Originations4 $ 685 $ 29 $ - NM N/A Average Managed Assets5 $ 52,472 $ 50,445 $ 50,020 4% 5% 1 Approximate FICOs 2 Includes nominal capital lease originations 3 Includes SBNA Originations 4 Asset Sales and SBNA Originations remain off of SC s balance sheet, servicing rights retained 5 Prior periods have been revised according to the 8-K filed on October 31, See financial supplement on the SC Investor Relations website for further details.

24 FCA US LLC (FCA) RELATIONSHIP 7 SC continues to optimize the Chrysler Capital program. Chrysler Capital average quarterly penetration rate of 31%, marking the second consecutive quarter of 30+% penetration. Through SBNA, SC has increased dealer receivables outstanding ( floorplan ) 15% QoQ FCA Sales1 Dealer Floorplan2 Outstanding (units in millions) ($ in millions) $2, $2,133 $2,156 $1,963 $1, Q17 4Q17 1Q18 2Q18 3Q18 YTD Full Year 1 FCA filings; sales as reported on 09/30/ Dealer receivables originated through SBNA

25 SERVICED FOR OTHERS (SFO) PLATFORM 8 Full roll out of SBNA Originations program with $685 million in originations Serviced for Others Balances, End of Period ($ in Millions) Composition at 09/30/2018 $9,957 RIC 86% $9,511 $9,195 Leases 8% RV/Marine 6% $8,639 $8,723 Total 100% 3Q17 4Q17 1Q18 2Q18 3Q18 Santander Flow Sales 1,347 1,475 1, SBNA Originations Other Other includes 3Q17 RV/Marine Sale and 2Q18 portfolio conversion

26 Q FINANCIAL RESULTS 9 Three Months Ended (Unaudited, Dollars in Thousands, except per share) % Variance September 30, 2018 June 30, 2018 September 30, 2017 QoQ YoY Reported As Revised As Revised Interest on finance receivables and loans $ 1,227,129 $ 1,211,006 $ 1,218,298 1% 1% Net leased vehicle income 194, , ,351 9% 64% Other finance and interest income 8,522 8,494 6,385 0% 33% Interest expense 285, , ,674 4% 14% Net finance and other interest income $ 1,144,089 $ 1,123,109 $ 1,092,360 2% 5% Provision for credit losses 597, , ,011 47% 5% Profit sharing 1,652 12,853 5,945 (87%) (72%) Total other income 1 24,640 22,384 58,947 10% (58%) Total operating expenses 272, , ,903 (2%) (9%) Income before tax $ 296,823 $ 449,146 $ 276,448 (34%) 7% Income tax expense 64, ,120 77,879 (43%) (17%) Net income $ 231,947 $ 335,026 $ 198,569 (31%) 17% Diluted EPS ($) $ 0.64 $ 0.93 $ 0.55 (31%) 16% Average total assets $ 41,985,751 $ 40,885,863 $ 39,476,811 3% 6% Average managed assets $ 52,472,270 $ 50,445,203 $ 50,019,800 4% 5% *Prior periods have been revised according to the 8-K filed on October 31, See financial supplement on the SC Investor Relations website for further details. 1 Includes a pre-tax gain of $36 million from the sale of an RV/Marine portfolio during Q3 2017

27 DELINQUENCY AND LOSS 10 Delinquency: Individually Acquired Retail Installment Contracts, Held for Investment 12.0% 11.4% 10.5% 10.2% 9.6% 10.0% 8.9% delinquency ratios up 30 basis points YoY 8.0% 6.3%. >59 delinquency ratios down 30 basis points YoY 5.8% 6.0% 5.5% 4.4% 4.5% % >59 2.0% 0.0% Q Q Q Q Q Credit: Individually Acquired Retail Installment Contracts, 23.0% Held for Investment 120.0% 19.2% 110.0% 18.2% 18.5% 17.6% 18.0% 100.0% 15.2% Gross Charge- 90.0% off Ratio. YoY gross charge-off ratio decreased 60 basis points 13.0% 80.0% 10.3% Net Charge-off. YoY net charge-off ratio decreased 50 basis points 9.3% 8.8% Ratio 8.3% 70.0% 8.0% 6.1%. YoY Auction Plus recovery rate increased % Recovery Rate (as % of basis points 60.2% 55.0% 50.0% recorded 3.0% 48.8% 50.0% investment) 46.3% 40.0% -2.0% Q Q Q Q Q % *Prior periods have been revised according to the 8-K filed on October 31, See financial supplement on the SC Investor Relations website for further details.

28 CREDIT QUALITY: LOSS DETAIL 11 Q to Q Retail Installment Contract Net Charge-Off Walk ($ in millions) $27 ($39) $26 ($25) $624 $613 Q Other Balance Recoveries Gross Loss Performance Q *Prior periods have been revised according to the 8-K filed on October 31, See financial supplement on the SC Investor Relations website for further details.

29 PROVISION AND RESERVES 12 Q to Q ALLL Reserve Walk 2 3,800 ($ in millions) 3,700 $64 3,600 $46. QoQ allowance decreased $16 million 3,500 ($401) 1 $275. New volume, TDR migration and performance 3,400 adjustment were offset by liquidations and other 3,300 3,200 $3,321 $3,305 3,100 3,000 Q New Volume TDR Performance Liquidations Q Migration Adjustment & Other Provision Expense and Allowance Ratio ($ in millions) $700 $598 $ % $600 $571 $510 $500. Allowance to loans ratio decreased 40 bps to 11.7% QoQ $ % $ % Provision for credit losses increased $27 million YoY $ % 12.7% $ % 11.5% 11.7% $100 $0 10.0% Q Q Q Q Q Provision for credit losses Allowance Ratio *Prior periods have been revised according to the 8-K filed on October 31, See financial supplement on the SC Investor Relations website for further details. 1 TDR migration the allowance for assets classified as TDRs or troubled debt restructuring takes into consideration expected lifetime losses, typically requiring additional coverage 2 Explanation of quarter over quarter variance are estimates

30 TDR BALANCE COMPOSITION BY VINTAGE 13 TDR balances are down quarter over quarter TDR Balance by Origination Vintage ($ billions) $6.30 $6.31 $6.10 $6.10 $5.89 $5.79 2% $ % 6% 4% 9% 20% 24% 10% 26% 35% 36% 37% 27% 37% 36% 34% 29% 32% 27% 24% 22% 20% 18% 17% 32% 28% 23% 21% 18% 16% 14% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q & Prior *Prior periods have been revised according to the 8-K filed on October 31, See financial supplement on the SC Investor Relations website for further details.

31 EXPENSE MANAGEMENT 14 Operating expenses totaled $272 million, a decrease of 9% versus the same quarter last year. $60, % $52,472 $50,445 $50,020 $49,022 $50,002 $48, % Average $426 Managed $40,002 Assets 6.0% ($ millions) $298 $30,002 $288 $277 $272 Total Expenses 4.0% ($ millions) $20, % 2.0% Expense $10, % 2.4% 2.2% 2.1% Ratio $2 0.0% Q Q Q Q Q *Prior periods have been revised according to the 8-K filed on October 31, See financial supplement on the SC Investor Relations website for further details. 1 Q was impacted by significant items. Please refer to the 8-K filed January 31, 2018 for further details.

32 FUNDING AND LIQUIDITY 15 Total funding of $41.6 billion at the end Q3 2018, down 4% from $43.3 billion at the end of Q Asset-Backed Securities Financings ($ Billions) ($ Billions) Amortizing Revolving Q Q Q Q Q Q Unused Used. $4.5 billion in 1 SDART and 2 DRIVE transactions. $15.1 billion in commitments from 12 lenders1. 46% unused capacity on revolving lines at Q Banco SantanderSantander & Subsidiaries Asset Sales ($ Billions) ($ Billions) Term 3.0 Revolving Contingent Q Q Q Q $6.5 billion in total commitments. Sixth Santander flow sale of $275 million 1 Does not include repo facilities

33 CONSISTENT CAPITAL GENERATION 16 SC has exhibited a strong ability to generate earnings and capital, while growing assets. Received authorization for dividend payments of $0.20 per share per quarter and executing on previously announced $200M share repurchase plan. CET11 TCE/TA2 17.0% 16.9% 16.9% 16.3% 16.2% 16.6% 16.4% 16.5% 15.1% 14.9% Q Q Q Q Q $ in millions Tangible Assets $38,640 $39,299 $39,924 $41,052 $42,701 Tangible Common Equity $5,768 $6,362 $6,608 $6,928 $7,035 *Prior periods have been revised according to the 8-K filed on October 31, See financial supplement on the SC Investor Relations website for further details. 1 Common Equity Tier 1 (CET1) Capital Ratio is a non-gaap financial measure that begins with stockholders equity and then adjusts for AOCI, goodwill/intangibles, DTAs, cash flow hedges and other regulatory exclusions over risk-weighted assets. See appendix for further details. 2 Tangible common equity to tangible assets is a non-gaap financial measure defined as the ratio of Total equity, excluding Goodwill and intangible assets, to Total assets, excluding Goodwill and intangible assets

34 APPENDIX

35 DIVERSIFIED UNDERWRITING ACROSS FULL CREDIT SPECTRUM 18 Originations by Credit (RIC only) 1 ($ in millions) $3,328 $3,014 $4,278 $5,344 $4,700 31% 29% 28% 38% 36% >640 15% 16% 17% % 13% % 27% 28% <540 23% 24% $3,394 $2,065 No FICO 2 14% 14% 14% 14% 14% Commercial 10% 10% 12% 12% 12% 2% 2% 2% 1% 2% 3Q17 4Q17 1Q18 2Q18 3Q18 New/Used Originations ($ in millions) $3,328 $3,014 $4,278 $5,344 $4,700 40% 45% 47% 50% 43% Used New 60% 55% 53% 50% 57% 3Q17 4Q17 1Q18 2Q18 3Q18 Average loan balance in dollars $21,825 $22,013 $21,699 $22,926 $23,110 1 RIC; Retail Installment Contract 2 Loans to commercial borrowers; no FICO score obtained

36 HELD FOR INVESTMENT CREDIT TRENDS 19 Retail Installment Contracts1 32.7% 32.6% 32.4% 32.4% 32.0% 22.4% 21.8% 21.0% 20.3% 21.6% 18.0% 17.8% 17.5% 17.4% 15.9% 17.6% 15.4% 15.1% 13.7% 15.0% 11.6% 11.3% 11.2% 11.2% 11.2% 2.2% 2.4% 2.5% 1.9% 1.9% Commercial Unknown < >=640 Q Q Q Q Q Held for investment; excludes assets held for sale

37 EXCLUDING PERSONAL LENDING DETAIL 20 Personal lending earned $39 million before operating expenses and taxes As of and for the Three Months Ended (Unaudited, Dollars in Thousands) September 30, 2018 June 30, 2018 September 30, 2017 Excluding Excluding Excluding Personal Personal Personal Total Personal Total Personal Total Personal Lending Lending Lending Lending Lending Lending Interest on finance receivables and loans $ 1,227,129 $ 84,029 $ 1,143,100 $ 1,211,006 $ 84,772 $ 1,126,234 $ 1,218,299 $ 83,475 $ 1,134,824 Net leased vehicle income 194, , , , , ,351 Other finance and interest income 8,522-8,522 8,494-8,494 6,385-6,385 Interest expense 285,583 11, , ,953 7, , ,674 12, ,659 Net finance and other interest income $ 1,144,089 $ 72,819 $ 1,071,270 $ 1,123,109 $ 77,457 $ 1,045,652 $ 1,092,360 $ 71,460 $ 1,020,900 Provision for credit losses (597,914) 135 (598,049) (406,544) 83 (406,628) (571,011) (1,135) (569,876) Profit sharing (1,652) 5,054 (6,706) (12,853) (5,282) (7,571) (5,945) 143 (6,088) 1 Investment gains (losses), net (86,320) (86,775) 455 (82,633) (75,725) (6,908) (52,592) (83,700) 31,108 Servicing fee income 26,409-26,409 27,537-27,537 28,673-28,673 Fees, commissions and other 84,552 48,003 36,549 77,480 45,237 32,243 82,866 47,380 35,486 Total other income $ 24,641 $ (38,772) $ 63,413 $ 22,384 $ (30,488) $ 52,872 $ 58,947 $ (36,320) $ 95,267 Average gross individually acquired retail installment contracts, held for investment and held for sale $ 28,060,492 - $ 27,673,016 - $ 28,165,822 - Average gross personal loans - $ 1,350,852 - $ 1,375,877 - $ 1,367,445 Average gross operating leases $ 13,607,010 - $ 12,219,612 - $ 10,710,941 - *Prior periods have been revised according to the 8-K filed on October 31, See financial supplement on the SC Investor Relations website for further details. 1 The current period losses were primarily driven by $87 million of lower of cost or market adjustments related to the held for sale personal lending portfolio, comprised of $100 million in customer default activity, partially offset by a $13 million increase in market discount, consistent with typical seasonal patterns.

38 RECONCILIATION OF NON-GAAP MEASURES 21 September 30, June 30, March 31, December 31, September 30, (Unaudited, dollars in thousands) As Revised As Revised As Revised As Revised Total equity $ 7,141,215 $ 7,033,636 $ 6,713,532 $ 6,465,702 $ 5,873,102 Deduct: Goodwill and intangibles 106, , , , ,590 Tangible common equity $ 7,034,982 $ 6,927,967 $ 6,608,388 $ 6,361,912 $ 5,767,512 Total assets $ 42,806,955 $ 41,157,189 $ 40,028,740 $ 39,402,799 $ 38,746,090 Deduct: Goodwill and intangibles 106, , , , ,590 Tangible assets $ 42,700,722 $ 41,051,520 $ 39,923,596 $ 39,299,009 $ 38,640,500 Equity to assets ratio 16.7% 17.1% 16.8% 16.4% 15.2% Tangible common equity to tangible assets 16.5% 16.9% 16.6% 16.2% 14.9% Total equity $ 7,141,215 $ 7,033,636 $ 6,713,532 $ 6,465,702 $ 5,873,102 Deduct: Goodwill and other intangible assets, net of deferred tax liabilities 162, , , , ,502 Deduct: Accumulated other comprehensive income, net 56,601 62,449 63,211 44,262 27,481 Tier 1 common capital $ 6,921,971 $ 6,804,946 $ 6,480,451 $ 6,248,776 $ 5,673,119 Risk weighted assets (a) $ 42,256,218 $ 40,251,526 $ 38,191,687 $ 38,174,087 $ 37,609,878 Common Equity Tier 1 capital ratio (b) 16.4% 16.9% 17.0% 16.4% 15.1% *Prior periods have been revised according to the 8-K filed on October 31, See financial supplement on the SC Investor Relations website for further details. (a) Under the banking agencies' risk-based capital guidelines, assets and credit equivalent amounts of derivatives and off-balance sheet exposures are assigned to broad risk categories. The aggregate dollar amount in each risk category is multiplied by the associated risk weight of the category. The resulting weighted values are added together with the measure for market risk, resulting in the Company's and the Bank's total Risk weighted assets (b) CET1 is calculated under Basel III regulations required as of January 1, 2015.

39