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 27, 2017 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 a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of large accelerated filer, accelerated filer, smaller reporting company, and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one): Large accelerated filer ý Accelerated filer Non-accelerated filer (Do not check if a smaller reporting company) Smaller reporting company Emerging growth company

2 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.

3 Item Results of Operations and Financial Condition. On October 27, 2017, 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, 2017 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 27, Exhibit 99.2 Presentation Materials of Santander Consumer USA Holdings Inc., dated October 27,

4 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 27, 2017 By: /s/ Scott Powell Name: Scott Powell Title: Chief Executive Officer

5 Exhibit 99.1 Contacts: Investor Relations Evan Black Media Relations Laurie Kight Santander Consumer USA Holdings Inc. Reports Third Quarter 2017 Net Income of $199 million Quarter Marked By Strong Financial and Operational Performance, New Leadership Team and Significant Regulatory Progress, Leading To First Dividend Declaration Since 2014 Dallas, TX (October 27, 2017) Santander Consumer USA Holdings Inc. (NYSE: SC) ( SC ) today announced net income for the third quarter ended September 30, 2017 ( Q ) of $199 million, or $0.55 per diluted common share. This includes a pretax gain of $36 million, or $0.07 per diluted common share from the sale of the majority of the Company's legacy RV/Marine portfolio. These results build on numerous Q milestones: SC announced a new President and CEO, Scott Powell The Federal Reserve Bank of Boston announced the termination of the 2014 Written Agreement with SC's majority owner, Santander Holdings USA, Inc. ( SHUSA ), enabling SHUSA and SC to operate within a normal capital cycle The Company has declared a cash dividend of $0.03 per share, to be paid November 17, 2017 to shareholders of record as of the close of business on November 7, 2017 SC's retail installment contract ( RIC ) gross and net loss ratios improved, with YoY decreases of 40 and 20 basis points, respectively Our results this quarter demonstrate the continued strength of our business said Scott Powell, SC President and CEO, also SHUSA CEO. We have been focused on strengthening our financial and operational performance, delivering returns for all our shareholders and improving risk management. Our credit performance in the third quarter was strong and positively impacted our financial results. The Federal Reserve's termination of its 2014 Written Agreement with SHUSA gives SC the ability to make distributions within a normal capital cycle. We still have work to do to resolve our outstanding regulatory issues, but it is a major turning point for our business. Other recently announced key leadership changes include: Juan Carlos ( JC ) Alvarez was appointed CFO. JC joined SC from SHUSA, where he served as Corporate Treasurer Sandra ( Sandy ) Broderick was appointed EVP, Head of Operations. Sandy joined SC from US Bank, which she joined in 2017 from JPMorgan Chase & Co., where she served as Managing Director, Operations Executive from 2002 to March 2017, and as Head of Operations for the automotive finance business from 2012 Rich Morrin, former SC COO, was appointed President, Chrysler Capital and Auto Relationships Mr. Powell continued, I'm pleased to have a strong leadership team in place including JC, Sandy and Rich. JC was instrumental in the work that led to the termination of SHUSA's 2014 Written Agreement with the Federal Reserve, Sandy has significant operations expertise in auto finance, and Rich's new role will allow SC to devote more attention to building our relationship with Fiat Chrysler. Juan Carlos Alvarez, Chief Financial Officer, added, We are pleased to report solid financial performance this quarter. We are providing temporary financial relief to our customers affected by the recent hurricanes, primarily in the form of loan extensions. While we expect additional delinquencies and losses associated with this relief effort in subsequent quarters, both gross and net loss ratios decreased versus the prior year quarter, demonstrating improved credit performance in our portfolio. Q Highlights (variancescomparedtoq32016,unlessotherwisenoted): Retail Installment Contract ("RIC") gross and net loss ratios decreased 40 and 20 basis points, respectively 1

6 Auction-plus recovery rate of 49.3% remained relatively flat Asset sales of $1.3 billion executed through the Banco Santander flow agreement $1.8 billion in asset-backed securities (ABS) offered and sold Total auto originations of $5.0 billion, down 3% Core retail auto loan originations of $1.5 billion, down 21% Chrysler Capital nonprime loan originations of $850 million, down 1% Chrysler Capital prime loan originations of $928 million, down 10% Net finance and other interest income of $1.1 billion, down 10% Net leased vehicle income of $118 million, down 13% Return on average assets of 2.0%, down from 2.2% Common equity tier 1 ( CET1 ) ratio of 15.0%, up 190 bps Finance receivables, loans and leases, net 1 of $34.4 billion as of September 30, 2017 increased 1 percent versus December 31, Net finance and other interest income decreased 10 percent to $1.1 billion in Q from $1.2 billion in Q3 2016, driven by lower average RIC balances and an increase in benchmark rates. Net leased vehicle income decreased 13 percent to $118 million in Q3 2017, from $136 million in Q3 2016, due to an increase in leased vehicle depreciation, primarily driven by revised Automotive Leasing Guide ("ALG") residual value forecasts as of Q SC depreciates its lease portfolio to forecasted residual values. Servicing fee income decreased 21 percent to $29 million in Q3 2017, from $36 million in Q SC's serviced for others portfolio of $10.0 billion as of Q3 2017, is down 18 percent from $12.2 billion in Q The serviced for others portfolio increased versus the prior quarter driven by asset sales of $1.5 billion during Q3 2017, $1.3 billion of which was generated through SC's flow agreement with Banco Santander. SC's RIC delinquency ratio 2 increased to 5.1 percent in Q from 4.6 percent in Q3 2016, primarily due to a lower portfolio balance. SC s RIC net charge-off ratio 3 and provision for credit losses decreased to 9.1 percent and $536 million in Q3 2017, respectively, from 9.3 percent and $610 million in Q3 2016, respectively, attributable to a combination of improving credit performance and stabilizing recovery rates. The decrease in provision for credit losses was partially offset by additional reserves for customers affected by Hurricanes Harvey and Irma. SC's allowance ratio 4 increased 20 basis points, to 12.8 percent at the end of Q3 2017, from 12.6 percent at the end of Q SC recorded net investment losses of $53 million in Q3 2017, compared to net investment losses of $106 million in Q The current period losses were primarily driven by held for sale accounting for SC's personal lending portfolio 5. Excluding the impact of personal lending, net investment gains totaled $30 million, which includes the $36 million pretax RV/Marine portfolio gain on sale. During Q SC incurred $298 million of operating expenses, up 5 percent from $284 million in Q3 2016, primarily driven by losses recorded for certain contingencies and severance expenses related to management changes. SC's expense ratio for the quarter increased to 2.4 percent, up from 2.2 percent during the same period last year. 1 Includes Finance receivables held for investment, Finance receivables held for sale and Leased vehicles. 2 Delinquency ratio is defined as the ratio of end of period delinquent principal over 60 days to end of period gross balance of the respective portfolio, excludes capital leases. 3 Net charge-off ratio stated on a recorded investment basis, which is unpaid principal balance adjusted for unaccreted net discounts, subvention and origination costs. 4 Ratio for allowance for credit losses excludes end of period balances on purchased receivables portfolio of $49 million and finance receivables held for sale of $1.8 billion. 5 The current period losses were primarily driven by $84 million of lower of cost or market adjustments related to the held for sale personal lending portfolio, comprised of $108 million in customer default activity, offset by a $24 million decrease in market discount, consistent with typical seasonal patterns. 2

7 Conference Call Information SC management will host a conference call and webcast to discuss its Q results and other general matters at 9:00 a.m. Eastern Time on Friday, October 27, The conference call will be accessible by dialing (U.S. domestic), or (international), conference ID Please dial in 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. 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 event. The dial-in replay will be available for two weeks 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 Fiat Chrysler Automobiles US LLC may not result in currently anticipated levels of growth and is subject to certain performance 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, technology-driven 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 $50 billion (as of September 30, 2017 ), and is headquartered in Dallas. ( ) 3

8 Santander Consumer USA Holdings Inc. Financial Supplement Third Quarter 2017 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 10 Table 6: Asset Sales 11 Table 7: Ending Portfolio 12 Table 8: Reconciliation of Non-GAAP Measures 13 4

9 Table 1: Condensed Consolidated Balance Sheets Assets September 30, 2017 (Unaudited, Dollars in thousands) December 31, 2016 Cash and cash equivalents $ 397,311 $ 160,180 Finance receivables held for sale, net 1,775,459 2,123,415 Finance receivables held for investment, net 22,667,203 23,481,001 Restricted cash 2,559,246 2,757,299 Accrued interest receivable 330, ,274 Leased vehicles, net 9,931,283 8,564,628 Furniture and equipment, net 72,519 67,509 Federal, state and other income taxes receivable 112,794 87,352 Related party taxes receivable 467 1,087 Goodwill 74,056 74,056 Intangible assets 31,534 32,623 Due from affiliates 26,871 31,270 Other assets 786, ,410 Total assets $ 38,765,557 $ 38,539,104 Liabilities and Equity Liabilities: Notes payable credit facilities $ 4,965,888 $ 6,739,817 Notes payable secured structured financings 23,258,363 21,608,889 Notes payable related party 2,369,850 2,975,000 Accrued interest payable 38,012 33,346 Accounts payable and accrued expenses 336, ,021 Deferred tax liabilities, net 1,515,932 1,278,064 Due to affiliates 67,059 50,620 Other liabilities 328, ,728 Total liabilities 32,880,323 33,300,485 Equity: Common stock, $0.01 par value 3,598 3,589 Additional paid-in capital 1,672,392 1,657,611 Accumulated other comprehensive income, net 27,481 28,259 Retained earnings 4,181,763 3,549,160 Total stockholders equity 5,885,234 5,238,619 Total liabilities and equity $ 38,765,557 $ 38,539,104 5

10 Table 2: Condensed Consolidated Statements of Income Three Months Ended September 30, Nine Months Ended September 30, (Unaudited, Dollars in thousands, except per share amounts) Interest on finance receivables and loans $ 1,185,059 $ 1,246,386 $ 3,626,497 $ 3,804,322 Leased vehicle income 457, ,501 1,305,429 1,086,651 Other finance and interest income 6,385 3,638 15,415 11,440 Total finance and other interest income 1,649,376 1,638,525 4,947,341 4,902,413 Interest expense 250, , , ,504 Leased vehicle expense 339, , , ,230 Net finance and other interest income 1,059,121 1,178,620 3,308,231 3,594,679 Provision for credit losses 536, ,398 1,692,015 1,782,489 Net finance and other interest income after provision for credit losses 522, ,222 1,616,216 1,812,190 Profit sharing 5,945 6,400 22,333 35,640 Net finance and other interest income after provision for credit losses and profit sharing 516, ,822 1,593,883 1,776,550 Investment losses, net (52,592) (106,050) (228,513) (276,415) Servicing fee income 28,673 36,447 92, ,929 Fees, commissions, and other 82,866 96, , ,028 Total other income 58,947 26, , ,542 Compensation expense 134, , , ,242 Repossession expense 66,877 75, , ,816 Other operating costs 96,857 80, , ,509 Total operating expenses 297, , , ,567 Income before income taxes 277, , ,309 1,070,525 Income tax expense 78,385 90, , ,334 Net income $ 199,388 $ 213,547 $ 607,490 $ 705,191 Net income per common share (basic) $ 0.55 $ 0.60 $ 1.69 $ 1.97 Net income per common share (diluted) $ 0.55 $ 0.59 $ 1.69 $ 1.96 Weighted average common shares (basic) 359,619, ,343, ,397, ,179,618 Weighted average common shares (diluted) 360,460, ,087, ,069, ,635,034 6

11 Table 3: Other Financial Information Ratios Three Months Ended September 30, Nine Months Ended September 30, (Unaudited, Dollars in thousands) Yield on individually acquired retail installment contracts 15.6% 15.9% 15.8% 16.2 % Yield on purchased receivables portfolios 17.4% 26.7% 20.1% 26.0 % Yield on receivables from dealers 6.0% 6.7% 5.7% 5.2 % Yield on personal loans (1) 24.4% 23.4% 24.9% 21.8 % Yield on earning assets (2) 13.0% 13.8% 13.4% 14.2 % Cost of debt (3) 3.2% 2.6% 3.0% 2.5 % Net interest margin (4) 10.5% 11.8% 11.0% 12.2 % Expense ratio (5) 2.4% 2.2% 2.3% 2.1 % Return on average assets (6) 2.0% 2.2% 2.1% 2.5 % Return on average equity (7) 13.8% 17.1% 14.6% 19.8 % Net charge-off ratio on individually acquired retail installment contracts (8) 9.1% 9.3% 8.5% 7.7 % Net charge-off ratio on purchased receivables portfolios (8) 2.6% 0.4% 1.2% (0.4)% Net charge-off ratio on receivables from dealers (8) 0.2 % Net charge-off ratio on personal loans (8) 67.2% 62.7% Net charge-off ratio (8) 9.1% 9.2% 8.5% 7.7 % Delinquency ratio on individually acquired retail installment contracts held for investment, end of period (9) 5.1% 4.6% 5.1% 4.6 % Delinquency ratio on personal loans, end of period (9) 13.8% 13.4% 13.8% 13.4 % Delinquency ratio on loans held for investment, end of period (9) 5.1% 4.6% 5.1% 4.6 % Allowance ratio (10) 12.8% 12.4% 12.8% 12.4 % Common Equity Tier 1 capital ratio (11) 15.0% 13.1% 15.0% 13.1 % Other Financial Information Charge-offs, net of recoveries, on individually acquired retail installment contracts $ 611,130 $ 630,847 $ 1,722,684 $ 1,583,406 Charge-offs, net of recoveries, on purchased receivables portfolios ,541 (807) Charge-offs, net of recoveries, on receivables from dealers 135 Charge-offs, net of recoveries, on personal loans 1,771 6,550 Charge-offs, net of recoveries, on capital leases 1,193 2,095 3,785 7,165 Total charge-offs, net of recoveries $ 614,863 $ 633,196 $ 1,734,560 $ 1,589,899 End of period Delinquent principal over 60 days, individually acquired retail installment contracts held for investment $ 1,338,635 $ 1,260,255 $ 1,338,635 $ 1,260,255 End of period Delinquent principal over 60 days, personal loans $ 183,919 $ 179,443 $ 183,919 $ 179,443 End of period Delinquent principal over 60 days, loans held for investment $ 1,342,335 $ 1,267,950 $ 1,342,335 $ 1,267,950 End of period assets covered by allowance for credit losses $ 26,367,894 $ 27,490,290 $ 26,367,894 $ 27,490,290 End of period Gross finance receivables and loans held for investment $ 26,395,085 $ 27,706,307 $ 26,395,085 $ 27,706,307 End of period Gross personal loans $ 1,337,114 $ 1,337,692 $ 1,337,114 $ 1,337,692 End of period Gross finance receivables, loans, and leases held for investment $ 37,418,133 $ 37,295,993 $ 37,418,133 $ 37,295,993 Average Gross individually acquired retail installment contracts held for investment $ 26,762,472 $ 27,075,151 $ 26,976,810 $ 27,276,903 Average Gross personal loans held for investment $ 10,549 $ 6,937 $ 13,935 $ 6,869 Average Gross individually acquired retail installment contracts $ 28,144,133 $ 28,970,039 $ 28,182,386 $ 28,710,402 Average Gross purchased receivables portfolios 120, , , ,026 Average Gross receivables from dealers 53,715 70,392 63,401 72,735 Average Gross personal loans 1,367,445 1,343,099 1,419,223 1,572,297 Average Gross capital leases 22,544 39,974 26,415 49,625 Average Gross finance receivables, loans and capital leases $ 29,708,082 $ 30,690,253 $ 29,868,217 $ 30,706,085 Average Gross finance receivables, loans, and leases $ 40,419,023 $ 40,037,873 $ 40,125,969 $ 39,299,213 Average Managed assets $ 49,998,111 $ 52,675,379 $ 50,555,068 $ 52,983,740 Average Total assets $ 39,496,278 $ 38,473,832 $ 39,192,434 $ 37,844,330 Average Debt $ 31,554,026 $ 31,671,237 $ 31,538,355 $ 31,343,204 Average Total equity $ 5,764,119 $ 4,994,511 $ 5,542,255 $ 4,736,826 7

12 (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-for-investment 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 60 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 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

13 Table 4: Credit Quality Amounts related to our individually acquired retail installment contracts as of and for the three and nine months ended September 30, 2017 and 2016, are as follows: (Unaudited, Dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, Credit loss allowance beginning of period $ 3,446,968 $ 3,422,736 $ 3,411,055 $ 3,197,414 Provision for credit losses 535, ,396 1,682,894 1,787,277 Charge-offs (1,206,059) (1,246,760) (3,542,471) (3,429,905) Recoveries 594, ,913 1,819,787 1,846,499 Credit loss allowance end of period $ 3,371,265 $ 3,401,285 $ 3,371,265 $ 3,401,285 Net charge-offs $ 611,130 $ 630,847 $ 1,722,684 $ 1,583,406 Average unpaid principal balance (UPB) 26,762,472 27,075,151 26,976,810 27,276,903 Charge-off ratio 1 9.1% 9.3% 8.5% 7.7% September 30, December 31, Principal days past due $ 2,574, % $ 2,911, % Delinquent principal over 59 days 3 1,460, % 1,520, % Total delinquent contracts $ 4,034, % $ 4,431, % September 30, 2017 December 31, 2016 TDR - Unpaid principal balance $ 6,276,659 $ 5,599,567 TDR - Impairment 1,782,114 1,611,295 TDR allowance ratio 28.4% 28.8% Non-TDR - Unpaid principal balance $ 20,044,330 $ 21,528,406 Non-TDR - Allowance 1,589,151 1,799,760 Non-TDR allowance ratio 7.9% 8.4% Total - Unpaid principal balance $ 26,320,989 $ 27,127,973 Total - Allowance 3,371,265 3,411,055 Total allowance ratio 12.8% 12.6% 1 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-for-investment portfolio 2 Percent of unpaid principal balance. 3 Interest is accrued until 60 days past due in accordance with the Company's account policy for retail installment contracts. 9

14 Table 5: Originations Retained Originations Three Months Ended Nine Months Ended Three Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 (Unaudited, Dollar amounts in thousands) Retail installment contracts $ 2,570,228 $ 3,281,112 $ 8,619,961 $ 10,545,592 $ 3,750,752 Average APR 16.1% 14.7% 17.2% 15.1% 15.6% Average FICO (a) Discount 1.2% 0.1% 0.8% 0.4% 0.3% June 30, 2017 Personal loans $ $ $ 5,660 $ 9,281 $ 5,660 Average APR 25.7% 25.0% 25.7% Leased vehicles $ 1,665,776 $ 1,300,375 $ 4,693,392 $ 4,612,284 $ 1,426,957 Capital lease $ 2,477 $ 2,319 $ 4,655 $ 5,977 $ 1,001 Total originations retained $ 4,238,481 $ 4,583,806 $ 13,323,668 $ 15,173,134 $ 5,184,370 Sold Originations (b) Retail installment contracts $ 757,720 $ 580,242 $ 2,550,065 $ 2,201,659 $ 304,748 Average APR 6.0% 3.2% 6.2% 3.0% 6.6% Average FICO (c) Total originations sold $ 757,720 $ 580,242 $ 2,550,065 $ 2,201,659 $ 304,748 Total originations $ 4,996,201 $ 5,164,048 $ 15,873,733 $ 17,374,793 $ 5,489,118 (a) Unpaid principal balance excluded from the weighted average FICO score is $311 million, $492 million, $1.2 billion, $1.8 billion, and $503 million for the three months ended September 30, 2017 and 2016, the nine months ended September 30, 2017 and 2016, and the three months ended June 30, 2017, respectively, as the borrowers on these loans did not have FICO scores at origination. Of these amounts, $37 million, $74 million, $95 million, $370 million, and $49 million, respectively, were commercial loans. (b) Only includes assets both originated and sold in the period. Total asset sales for the period are shown in Table 6. (c) Unpaid principal balance excluded from the weighted average FICO score is $93 million, $59 million, $319 million, $263 million, and $39 million for the three months ended September 30, 2017 and 2016, the nine months ended September 30, 2017 and 2016, and the three months ended June 30, 2017, respectively, as the borrowers on these loans did not have FICO scores at origination. Of these amounts, $26 million, zero, $102 million, zero, and $14 million, respectively, were commercial loans. 10

15 Table 6: Asset Sales Asset sales may include assets originated in prior periods. Three Months Ended Nine Months Ended Three Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 June 30, 2017 (Unaudited, Dollar amounts in thousands) Retail installment contracts $ 1,482,134 $ 793,804 $ 2,979,033 $ 2,312,983 $ 566,309 Average APR 6.2% 3.0% 6.2% 2.9% 6.6% Average FICO Personal loans $ $ $ $ 869,349 $ Average APR 17.9% Total asset sales $ 1,482,134 $ 793,804 $ 2,979,033 $ 3,182,332 $ 566,309 11

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, 2017, and December 31, 2016, are as follows: September 30, 2017 December 31, 2016 ( Unaudited, Dollar amounts in thousands) Retail installment contracts $ 26,369,828 $ 27,358,147 Average APR 16.7% 16.4% Discount 1.6% 2.3% Personal loans $ 9,188 $ 19,361 Average APR 31.9% 31.5% Receivables from dealers $ 16,069 $ 69,431 Average APR 4.2% 4.9% Leased vehicles $ 11,001,400 $ 9,612,953 Capital leases $ 21,648 $ 31,872 12

17 Table 8: Reconciliation of Non-GAAP Measures September 30, 2017 September 30, 2016 ( Unaudited, Dollar amounts in thousands) Total equity $ 5,885,234 $ 5,117,657 Deduct: Goodwill, intangibles, and other assets, net of deferred tax liabilities 172, ,850 Deduct: Accumulated other comprehensive income (loss), net 27,481 (26,598) Tier 1 common capital $ 5,685,251 $ 4,952,405 Risk weighted assets (a) $ 37,828,130 $ 37,828,982 Common Equity Tier 1 capital ratio (b) 15.0% 13.1% (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. 13

18 SANTANDER CONSUMER USA HOLDINGS INC. Third Quarter 2017

19 2IMPORTANT INFORMATION 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 Fiat Chrysler Automobiles US LLC may not result in currently anticipated levels of growth and is subject to certain performance 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 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. 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 3» Net income of $199 million, or $0.55 per diluted common share» Includes sale of legacy RV/Marine portfolio resulting in a pre-tax gain on sale of $36 million, or $0.07 per diluted common share» Scott Powell appointed President & CEO; Juan Carlos Alvarez appointed CFO; Rich Morrin appointed to President of Chrysler Capital & Auto Relationships and Sandra Broderick appointed EVP, Head of Operations» Federal Reserve announced the termination of the 2014 Written Agreement with SHUSA» Allows SHUSA and SC to operate within a normal capital cycle» For the first time since 2014, SC has declared a cash dividend of $0.03 per share» Gross and net loss ratios down 40 and 20 bps YoY, respectively; Auction-plus recovery rate of 49.3%, flat YoY» Asset sales of $1.3 billion executed through the Banco Santander flow agreement» $1.8 billion in asset-backed securities (ABS) offered and sold» Total auto originations of $5.0 billion, down 3% YoY» Net finance and other interest income of $1.1 billion, down 10% YoY» Net leased vehicle income of $118 million, down 13% YoY» Return on average assets of 2.0%, down from 2.2% in Q3 2016» CET1 ratio of 15.0%, up 190 bps YoY Q HIGHLIGHTS Driving towards long-term success by delivering value to shareholders while focusing on disciplined underwriting, compliance and being Simple, Personal and Fair 1 Chrysler Capital is a dba of Santander Consumer USA

21 4ECONOMIC INDICATORS U.S. Auto Sales1 Units in Millions 1 Bloomberg 2 University of Michigan 3 U.S. Bureau of Labor Statistics Consumer Confidence2 Index Q1 1966=100 U.S. GDP1 % U.S. Unemployment Rate3 % O R IG IN AT IO N S CR ED IT Max Min 9.0 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep Max 99.1 Min 55.3 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep % Max 3.2% Min -4.1% Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Max 10.0% Min: 4.2% 4.2% Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17

22 5 45.1% 45.3% 49.4% 49.3% 35% 40% 45% 50% 55% 60% 65% 70% Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 SC Auction Only Recovery Rate SC Auction Plus Recovery Rate (Quarterly) Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Manheim (Left Axis) JDP Used-Vehicle Price Index (Right Axis) Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Manheim JDP Used-Vehicle Price Index AUTO INDUSTRY ANALYSIS Used Vehicle Indices1 Manheim: Seasonally Adjusted JD Power: Not Seasonally Adjusted SC Recovery Rates2 Industry Net Loss Rates3 SE V ER IT Y CR ED IT Industry 60+ Day Delinquency Rates3 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 two-month lag on data, as of July 31, 2017) 4.5% Max 5.4% Min 1.6% Jul-07 Jul-09 Jul-11 Jul-13 Jul-15 Jul-17 Subprime 7.4% Max 13.3% Min 2.8% Jul-07 Jul-09 Jul-11 Jul-13 Jul-15 Jul-17 Subprime

23 6 VEHICLE FINANCE LEVERAGING TECHNOLOGY IS INTEGRAL TO THE FOUR PILLARS OF OUR FOCUSED BUSINESS MODEL FOCUSED BUSINESS MODEL DISCIPLINED APPROACH TO MARKET SIMPLE, PERSONAL, FAIR APPROACH WITH CUSTOMERS, EMPLOYEES AND ALL CONSTITUENCIES SERVICED FOR OTHERS FUNDING AND LIQUIDITY CULTURE OF COMPLIANCE

24 7DIVERSIFIED UNDERWRITING ACROSS THE CREDIT SPECTRUM YoY auto origination decreases driven by disciplined underwriting in a competitive market ($ in Millions) Q Q Q QoQ YoY Total Core Retail Auto 1,550$ 2,253$ 1,972$ (31%) (21%) Chrysler Capital Loans (<640) (10%) (1%) Chrysler Capital Loans ( 640) ,034 9% (10%) Total Chrysler Capital Retail 1,778$ 1,802$ 1,889$ (1%) (6%) Total Leases2 1,668 1,428 1,303 17% 28% Total Auto Originations 4,996$ 5,483$ 5,164$ (9%) (3%) Total Personal Lending N/A N/A Total Originations 4,996$ 5,489$ 5,164$ (9%) (3%) Asset Sales 1,482$ 566$ 794$ 162% 87% Average Managed Assets 49,998$ 50,436$ 52,675$ (1%) (5%) Three Months Ended Originations % Variance 1 Approximate FICOs 2 Includes nominal capital lease originations

25 8 2% 2% 2% 2% 2% 12% 11% 12% 12% 10% 13% 15% 18% 17% 14% 23% 24% 25% 24% 23% 14% 15% 13% 13% 13% 35% 32% 30% 33% 38% 3Q16 4Q16 1Q17 2Q17 3Q17 Originations by Credit (RIC1 only) ($ in millions) > <540 No FICO Commercial 56% 53% 47% 48% 55% 44% 47% 53% 52% 45% 3Q16 4Q16 1Q17 2Q17 3Q17 New/Used Originations ($ in millions) Used New DIVERSIFIED UNDERWRITING ACROSS FULL CREDIT SPECTRUM Originations <640 decreased by approximately $436 million YoY Mix relatively constant on a percentage basis Higher proportion of new vehicles originated in Q compared to Q2 2017, in-line with prime originations Average loan balances on originations higher QoQ, reflecting larger percentage of new vehicles Average loan balance in dollars $21,482 $21,488 $20,193 $20,816 $21,825 $3,328$3,861 $3,553 $4,055$3,786 2 $2,065$2,501 $3,328$3,861 $3,553 $4,055$3,786 1 RIC; Retail Installment Contract 2 Loans to commercial borrowers; no FICO score obtained

26 9 Banco Santander flow agreement Rich Morrin appointed President, Chrysler Capital and Auto Relationships to focus on Fiat Chrysler relationship FCA has sold more than 2 million units annually since 2014 September 2017 penetration rate of 19% vs. 20% as of June 2017 Q quarterly penetration rate of 21% vs. 20% in Q Accomplishments and Improvements SC is the largest finance provider for FCA Completed national roll out of dealer VIP program in Q with more than 2,500 dealerships participating CHRYSLER CAPITAL 1 FCA filings; sales as reported on 10/02/2017 SC continues to work strategically and collaboratively with FCA to further strengthen the relationship and create value within the Chrysler Capital program YTD FCA Sales1 (units in millions) YTD Full Year

27 10 Flow Programs ,347 CCART 904 Other sales 135 Recent trend in total balance related to lower prime originations Growth in SFO remains dependent upon Chrysler Capital penetration and FCA prime originations SERVICED FOR OTHERS (SFO) PLATFORM Composition at 9/30/2017 RIC 88% Leases 6% RV/Marine 6% Total 100% Serviced for Others Balances (End of Period) Third Banco Santander flow transaction of $1.3 billion RV/Marine portfolio sale of $135 million *Sales with retained servicing during period, also include non-banco Santander sales. $12,157 $11,945 $11,015 $9,881 $ 9,957 3Q16 4Q16 1Q17 2Q17 3Q17 $ in Millions

28 11 September 30, 2017 June 30, 2017 September 30, 2016 QoQ YoY Interest on finance receivables and loans 1,185,059$ 1,232,252$ 1,246,386$ (4%) (5%) Net leased vehicle income 118, , ,771 (10%) (13%) Other finance and interest income 6,385 5,205 3,638 23% 76% Interest expense 250, , ,175 7% 21% Net finance and other interest income 1,059,121$ 1,135,126$ 1,178,620$ (7%) (10%) Provision for credit losses 536, , ,398 3% (12%) Profit sharing 5,945 8,443 6,400 (30%) (7%) Total other income 58,947 24,395 26, % 121% Total operating expenses 297, , ,484 5% 5% Income before tax 277,773$ 348,108$ 304,020$ (20%) (9%) Income tax expense 78,385 83,433 90,473 (6%) (13%) Net income 199,388$ 264,675$ 213,547$ (25%) (7%) Diluted EPS ($) 0.55$ 0.74$ 0.59$ (26%) (7%) Average total assets 39,496,278$ 39,216,971$ 38,473,832$ 1% 3% Average managed assets 49,998,111$ 50,435,958$ 52,675,379$ (1%) (5%) Three Months Ended (Unaudited, Dollars in Thousands, except per share) % Variance Q FINANCIAL RESULTS

29 12 September 30, 2017 June 30, 2017 September 30, 2016 QoQ YoY Interest on finance receivables and loans 1,101,584$ 1,143,383$ 1,167,675$ (4%) (6%) Net leased vehicle income 118, , ,771 (10%) (13%) Other finance and interest income 6,385 5,205 3,637 23% 76% Interest expense 238, , ,984 8% 21% Net finance and other interest income 987,661$ 1,058,550$ 1,110,099$ (7%) (11%) Provision for credit losses 535, , ,398 3% (12%) Profit sharing 6,088 8,299 1,843 (27%) 230% Investment Gains (losses), net 31,110 (9,880) (10,405) N/M N/M Servicing fee income 28,673 31,953 36,446 (10%) (21%) Fees, commissions and other 35,486 32,412 46,425 9% (24%) Total other income 95,269$ 54,469$ 72,467$ 75% 31% Average gross individually acquired RICs 28,144,133$ 28,202,716$ 28,970,039$ 0% (3%) Average gross operating leases 10,710,941$ 10,380,491$ 9,347,620$ 3% 15% Average Serviced for Others 9,579,089$ 10,342,125$ 12,622,328$ (7%) (24%) Three Months Ended (Unaudited, Dollars in Thousands) % Variance Q EXCLUDING PERSONAL LENDING *Additional details can be found in Appendix

30 13TOTAL OTHER INCOME SC s strategy is to price loans sold under flow agreements close to par, with minimal investment gains (losses), to generate further growth in the serviced for others platform and drive increased fee income Beginning in Q4 2015, net investment gains (losses) include the impact of personal lending assets Customer defaults, as part of LOCM adjustments on the personal lending portfolio designated as held for sale, are recognized through net investment gains (losses) Seasonal balances will impact magnitude of LOCM adjustments; this quarter included lower LOCM adjustments driven by seasonal decreases in the personal lending portfolio 1 Other represents gains, losses and impairments 2 Normalized Investment Gains (Losses), Net and Normalized Total Other Income; Non-GAAP measures 3 Fees, commissions and Other includes fee income from the personal lending and auto portfolios 30-Sep Dec Mar Jun Sep-17 Reported Total Other Income (Loss) 26,682$ (47,996)$ 55,480$ 24,395$ 58,947$ Reported Investment (Losses), Net (106,050)$ (168,344)$ (76,399)$ (99,522)$ (52,592)$ Add back: Personal Lending LOCM Adjustments 95, ,083 64,639 89,642 83,699 Other1 6,639 8, ,701 (1,133) Normalized Investment Gains (Losses), Net2 (3,765)$ (10,131)$ (10,882)$ (2,179)$ 29,974$ Servicing Fee Income 36,447 32,205 31,684 31,953 28,673 Fees, Commissions, and Other3 96,285 88, ,195 91,964 82,866 Normalized Total Other Income2 128,967$ 110,217$ 120,997$ 121,738$ 141,513$ Customer Default Activity 114, , , , ,611 Fair Value Discount (18,831) 33,970 (46,560) (14,061) (23,912) Denotes quarters with CCART sales Three Months Ended (Unaudited, Dollars in Thousands) Includes RV/Marine pretax gain on sale of $36 million

31 14CREDIT QUALITY: VINTAGE LOSS PERFORMANCE 2016 vintage continues to outperform the 2015 vintage on a gross and net loss basis *Retained originations only 1 Vintage Performance describes January through December originations performance through the end of the following September (for each respective year), up to 21 months of performance to illustrate similar aging points for each vintage 2 SC s financial statements reflect auction fees in repossession expense, whereas these fees are included in the net loss figures as shown above; Non-GAAP measure 12.2% 13.8% 12.4% 9.5% 10.5% 11.5% 12.5% 13.5% 14.5% Vintage Performance1, Gross Losses 6.4% 7.5% 6.8% 4.0% 5.0% 6.0% 7.0% 8.0% Vintage Performance1, Net Losses2

32 % 19.0% 18.1% 16.4% 18.0% 9.3% 9.9% 8.8% 7.5% 9.1% 49% 48% 51% 54% 49% 44% 45% 46% 47% 48% 49% 50% 51% 52% 53% 54% 55% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% Q Q Q Q Q Credit: Individually Acquired Retail Installment Contracts, Held for Investment Gross Charge- off Ratio Net Charge-off Ratio Recovery Rate (as % of recorded investment) 9.2% 10.0% 7.3% 9.3% 9.2% 4.6% 5.1% 3.8% 4.7% 5.1% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Q Q Q Q Q Delinquency: Individually Acquired Retail Installment Contracts, Held for Investment DELINQUENCY AND LOSS YoY delinquency increased for each delinquency bucket primarily driven by a lower portfolio balance YoY gross charge-off ratio decreased 40 basis points YoY net charge-off ratio decreased 20 basis points

33 16 $631 $611 $18 ( $20 ) ( $16 ) ( $2 ) Q Recoveries Portfolio Aging and Mix Shift Debt Sales Other Q Q to Q Net Charge-Off Walk ($ in millions) CREDIT QUALITY: LOSS DETAIL

34 17 $610 $686 $635 $521 $ % 12.6% 12.7% 12.6% 12.8% 12.2% 12.3% 12.4% 12.5% 12.6% 12.7% 12.8% 12.9% $0 $100 $200 $300 $400 $500 $600 $700 $800 Q Q Q Q Q Provision Expense and Allowance Ratio ($ in millions) Provision for credit losses Allowance Ratio PROVISION AND RESERVES Allowance to loans ratio increased 20 bps to 12.8% QoQ Provision for credit losses decreased $74 million YoY 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 TBU Grace M. $3,458 $3,381 $138 $130 ($41) ($304) $3,200 $3,300 $3,400 $3,500 $3,600 $3,700 $3,800 Q New Volume TDR Migration Performance Adjustment Liquidations & Other Q Q to Q ALLL Reserve Walk2 ($ in millions) QoQ allowance decreased $77 million New volume and TDR migration1 were offset by liquidations and other

35 18 $52,675 $52,039 $51,230 $50,436 $49,998 $284 $296 $305 $282 $ % 2.3% 2.4% 2.2% 2.4% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% $2 $10,002 $20,002 $30,002 $40,002 $50,002 $60,002 Q Q Q Q Q Average Managed Assets ($ millions) Total Expenses ($ millions) Expense Ratio EXPENSE MANAGEMENT Operating expenses totaled $298 million, an increase of 5% versus the same quarter last year, primarily driven by losses recorded for certain contingencies and severance expenses related to management changes

36 Q Q Unused Used Q Q Unused Used $17.9 billion in commitments from 14 lenders 55% unused capacity on revolving lines at Q FUNDING AND LIQUIDITY Total committed liquidity of $42.3 billion at the end Q3 2017, up 1% from $42.0 billion at the end of Q Asset-Backed Securities ($ Billions) Private Financings ($ Billions) Banco Santander & Subsidiaries ($ Billions) Asset Sales ($ Billions) Offered and sold $1.8 billion in asset-backed securities (ABS) $7.8 billion in total commitments 70% unused capacity at Q Executed $1.3 billion Banco Santander flow transaction in Q Executed $135 million RV/Marine sale Amortizing Revolving Q Q Q Q Q Q3 2017

37 % 13.4% 13.8% 14.3% 15.0% 13.0% 13.4% 13.6% 14.1% 14.9% Q Q Q Q Q CET1 TCE/TA CONSISTENT CAPITAL GENERATION 1 Common Equity Tier 1 (CET1) Capital Ratio begins with stockholders equity and then adjusts for AOCI, goodwill/intangibles, DTAs, cash flow hedges and other regulatory exclusions over risk- weighted assets; Non-GAAP measure 2Tangible common equity to tangible assets is defined as the ratio of Total equity, excluding Goodwill and intangible assets, to Total assets, excluding Goodwill and intangible assets; Non-GAAP measure, reconciliation in Appendix 1 2 SC has exhibited a strong ability to generate earnings and capital, while growing assets. Tangible Assets $38,665 $38,432 $38,956 $39,401 $38,660 Tangible Common Equity $5,011 $5,132 $5,313 $5,572 $5,780 $ in millions The Company has declared a cash dividend of $0.03 per share, to be paid November 17, 2017 to shareholders of record as of the close of business on November 7, 2017

38 APPENDIX

39 22SANTANDER CONSUMER USA HOLDINGS INC. Santander Consumer USA Holdings Inc. (NYSE:SC) ( SC ) is approximately 58.7%1 owned by Santander Holdings USA, Inc. ( SHUSA ), a wholly-owned subsidiary of Banco Santander, S.A. (NYSE:SAN) On July 3, 2015, SHUSA elected to exercise its right to purchase all of the shares of SC common stock owned by DDFS LLC2, subject to regulatory approval and applicable law SC is a full-service consumer finance company focused on vehicle finance, third-party servicing and providing superior customer service Historically focused on nonprime markets; established presence in prime and lease Approximately 5,000 full-time, 50 part-time and 1,600 vendor-based employees across multiple locations in the U.S. and the Caribbean Our strategy is to leverage our efficient, scalable technology and risk infrastructure and data to underwrite, originate and service profitable assets while treating employees, customers and all stakeholders in a simple, personal and fair manner Unparalleled compliance and responsible practices focus Continuously optimizing the mix of assets retained vs. assets sold and serviced for others Efficient funding through key third-party relationships, secondary markets and Santander Solid capital base Overview Strategy 1 As of September 30, DDFS LLC is an entity owned by SC s former Chairman and Chief Executive Officer, Tom Dundon. This purchase would result in SHUSA owning approximately 68.4% of SC.

40 23 ~31.6% Ownership COMPANY ORGANIZATION Other Subsidiaries 100% Ownership Santander Holdings USA, Inc. ( SHUSA ) ~58.7% Ownership Santander Consumer USA Holdings Inc. ( SC ) Santander Bank, N.A. Other Subsidiaries ~9.7% Ownership DDFS LLC1 and Tom Dundon Public Shareholders Banco Santander, S.A. Spain *Ownership percentages are approximates as of September On July 3, 2015, SHUSA elected to exercise the right to purchase shares of SC common stock owned by DDFS LLC, an entity owned by former Chairman and Chief Executive Officer, Thomas Dundon, subject to regulatory approval and applicable law. This purchase would result in SHUSA owning approximately 68.4% of SC.

41 24Q EXCLUDING PERSONAL LENDING DETAIL Total Personal Lending Excluding Personal Lending Total Personal Lending Excluding Personal Lending Total Personal Lending Excluding Personal Lending Interest on finance receivables and loans $ 1,185,059 $ 83,475 $ 1,101,584 $ 1,232,252 $ 88,869 $ 1,143,383 $ 1,246,386 $ 78,711 $ 1,167,675 Net leased vehicle income 118, , , , , ,771 Other finance and interest income 6,385-6,385 5,205-5,205 3,637-3,637 Interest expense 250,674 12, , ,372 12, , ,175 10, ,984 Net finance and other interest income $ 1,059,121 $ 71,460 $ 987,661 $ 1,135,126 $ 76,576 $ 1,058,550 $ 1,178,619 $ 68,520 $ 1,110,099 Provision for credit losses 536, , ,555 1, , , ,398 Profit sharing 5,945 (143) 6,088 8, ,299 6,400 4,557 1,843 Investment Gains (losses), net (52,590) (83,700) 31,110 (99,522) (89,642) (9,880) (106,051) (95,646) (10,405) Servicing fee income 28,673-28,673 31,953-31,953 36,446-36,446 Fees, commissions and other 82,866 47,380 35,486 91,964 59,552 32,412 96,284 49,859 46,425 Total other income $ 58,949 $ (36,320) $ 95,269 $ 24,394 $ (30,075) $ 54,469 $ 26,680 $ (45,787) $ 72,467 Average gross individually acquired retail installment contracts $ 28,144,133 - $ 28,202,716 - $ 28,970,039 - Average gross personal loans - $ 1,367,445 - $ 1,402,416 - $ 1,343,099 Average gross operating leases $ 10,710,941 - $ 10,380,491 - $ 9,347,620 - Average Serviced for Others $ 9,579,089 - $ 10,342,125 - $ 12,622,328 - As of and for the Three Months Ended (Unaudited, Dollars in Thousands) September 30, 2017 June 30, 2017 September 30, 2016

42 25HELD FOR INVESTMENT CREDIT TRENDS Retail Installment Contracts1 1Held for investment at end of period; excludes assets held for sale 3. 3% 12.4 % 22.2 % 31.1 % 17.2 % 13.8 % 3. 1% 12.2 % 22.1 % 31.4 % 17.4 % 13.8 % 2. 8% 12.0 % 22.3 % 31.7 % 17.4 % 13.8 % 2. 5% 11.9 % 22.4 % 31.9 % 17.3 % 14.0 % 2. 4% 11.6 % 22.4 % 32.4 % 17.5 % 13.7 % Commercial Unknown < >=640 Q Q Q Q Q3 2017