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): January 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 January 31, 2018, Santander Consumer USA Holdings Inc. (the Company ) issued a press release announcing its financial results for the quarter ended December 31, Copies of the Company s press release and an investor presentation for the quarter ended December 31, 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 January 31, Exhibit 99.2 Presentation Materials of Santander Consumer USA Holdings Inc., dated January 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: January 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 Fourth Quarter and Full Year 2017 Results 2017 Milestones Pave the Way for 2018 with Continued Focus On Financial and Operational Performance, Fiat Chrysler and Other Key Origination Channels Dallas, TX (January 31, 2018) Santander Consumer USA Holdings Inc. (NYSE: SC) ( SC or the Company ) today announced net income for the fourth quarter of 2017 ( Q ) of $580 million, or $1.61 per diluted common share. Net income for Q4 2017, excluding the impact of significant items including tax reform and other tax related items, legal reserves, and a settlement with the former CEO ( Adjusted 1 ), totaled $98 million, or $0.27 per diluted common share. Net income for the full year 2017 ( 2017 ) was $1.2 billion, or $3.30 per diluted common share. Adjusted net income for 2017 was $627 million, or $1.74 per diluted common share. Please refer to Table 9 for a reconciliation of these significant items to GAAP. The Company has declared a cash dividend of $0.05 per share, to be paid on February 22, 2018, to shareholders of record as of the close of business on February 12, was a pivotal year for SC, and our full year results reflect that, said Scott Powell, SC President and CEO, and Santander US CEO. We strengthened our management team, stabilized credit performance, and launched new efforts focusing on Fiat Chrysler and the rest of our dealers. Passing the Federal Reserve's capital stress test and our relationship with Santander Group provide us with the balance sheet flexibility to support our business objectives in Regulatory and Business Milestones: The Federal Reserve Bank of Boston ( Federal Reserve ) terminated the 2014 Written Agreement with SC's majority owner, Santander Holdings USA, Inc. ( SHUSA ), following its non-objection to SHUSA's Comprehensive Capital Analysis and Review submission. SHUSA and SC now operate within a normal capital cycle, and SC completed its first cash dividend payment to shareholders since SHUSA and Banco Santander ( Santander ) increased their total ownership in SC to approximately 68.1%, following Santander's acquisition from SC's former CEO of 9.6% of SC's outstanding shares, which it transferred to SHUSA. Launched flow program with Santander allowing SC to execute prime auto loan sales of $2.6 billion, and through Santander Bank N.A., increased FCA dealer receivables ( floorplan ) 14% year-over-year, to $2.0 billion. Leading auto loan asset-backed securities ("ABS") issuer with $7.9 billion in ABS offered and sold, including SC's inaugural lease securitization, Santander Retail Auto Lease Trust ( SRT ) and SC's first public DRIVE securitization. Announced key appointments and changes to its management team, including Scott Powell as CEO, Juan Carlos Alvarez as CFO, Sandra Broderick as EVP, Head of Operations, and Rich Morrin, as President of Chrysler Capital and Auto Relationships. Full Year 2017 Key Financial Highlights (variancescomparedtofullyear2016( 2016 )): Total auto originations of $20.1 billion, down 8% Finance receivables, loans and leases, net 2, increased 2%, to $34.8 billion at December 31, 2017, from $34.2 billion at December 31, 2016 Net finance and other interest income of $4.3 billion, down 9% RIC gross charge-off ratio of 17.9%, up 60 basis points, stabilizing compared to a 230 basis point increase from 2015 to 2016 RIC net charge-off ratio of 8.9%, up 60 basis points, compared to a 140 basis point increase from 2015 to 2016 Return on average assets ( ROA ) of 3.0% and Adjusted ROA of 1.6%, down from 2.0% 1

5 Expense ratio of 2.6% and Adjusted expense ratio of 2.3%, up from 2.2% Fourth Quarter of 2017 Key Financial Highlights (variancescomparedtofourthquarterof2016( Q42016 )): Total auto originations of $4.3 billion, down 5% Core retail auto originations of $1.5 billion, down 27% Chrysler Capital loan originations of $1.5 billion, flat Chrysler Capital lease originations of $1.3 billion, up 31% Net finance and other interest income of $1.0 billion, down 11% ROA of 6.0% and Adjusted ROA of 1.0%, up from 0.6% CET1 ratio of 16.3% $2.2 billion in ABS offered and sold Subsequent Events: Partnered with Santander InnoVentures, a Santander corporate venture fund, during the first quarter of 2018, to become a lending choice on AutoFi's online finance platform to streamline and simplify the car buying process for consumers, while providing dealers a robust digital sales channel. Fourth quarter results demonstrate continued stabilization in credit performance following Hurricanes Harvey and Irma, said Juan Carlos Alvarez, SC CFO. As we head into 2018 our goal is to leverage our network and improve our dealer experience, including with Fiat Chrysler, while remaining focused on risk-adjusted returns and disciplined expense management. Net finance and other interest income decreased 11 percent, to $1.0 billion in Q from $1.1 billion in Q4 2016, primarily driven by lower average RIC balances and an increase in benchmark rates. Servicing fee income decreased 19 percent to $26 million in Q4 2017, from $32 million in Q4 2016, driven by lower prime originations and lower prime asset sales. SC's serviced for others portfolio of $8.6 billion as of Q4 2017, is down 28 percent from $11.9 billion in Q RIC delinquency ratio 3 increased to 5.4 percent in Q4 2017, from 5.1 percent in Q4 2016, primarily due to a lower portfolio balance. RIC net charge-off ratio 4 increased to 10.3 percent in Q4 2017, from 9.9 percent in Q Provision for credit loss decreased to $562 million in Q4 2017, from $686 million in Q Allowance ratio 5 decreased 20 basis points, to 12.6 percent at the end of Q4 2017, from 12.8 percent at the end of Q Recorded net investment losses were $138 million in Q4 2017, compared to net investment losses of $168 million in Q The current period losses were primarily driven by held for sale accounting for SC's personal lending portfolio 6. During the quarter, SC incurred $426 million of operating expenses, up 44 percent from $296 million in Q Adjusted operating expenses were $269 million, down 9 percent from $296 million in Q Please refer to Table 9 for a reconciliation of these significant items to GAAP. Amounts excluding significant items are non-gaap financial measures that management believes will assist users of SC's financial information by excluding items that management does not believe reflect SC's fundamental business performance or results of operations. 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 60 days to end of period gross balance of the respective portfolio, excluding capital leases. 4 Net charge-off ratio stated on a recorded investment basis, which is the 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 $28 million and finance receivables held for sale of $2.2 billion. 6 The current period losses were primarily driven by $136 million of lower of cost or market adjustments related to the held for sale personal lending portfolio, comprised of $114 million in customer default activity and $23 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 the Q results and other general matters at 9 a.m. Eastern Time on Wednesday, January 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 the corporate website at Choose Events and select the information pertaining to the Q Earnings Call. Additionally there will be several slides accompanying the webcast. Please allow at least 15 minutes to register, download and install any necessary software prior to the call. For those unable to listen to the live broadcast, a replay 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 for two weeks. 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, 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 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 2.6 million customers across the full credit spectrum. The Company, which began originating retail installment contracts in 1997, has a managed asset portfolio of approximately $49 billion as of December 31, 2017, and is headquartered in Dallas. ( ) 3

7 Santander Consumer USA Holdings Inc. Financial Supplement Fourth Quarter and Full Year 2016 Table of Contents Table 1: Consolidated Balance Sheets 5 Table 2: 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 & 9: Reconciliation of Non-GAAP Measures 13 4

8 Table 1: Consolidated Balance Sheets Assets December 31, 2017 (Unaudited, Dollars in thousands) December 31, 2016 Cash and cash equivalents $ 527,805 $ 160,180 Finance receivables held for sale, net 2,210,421 2,123,415 Finance receivables held for investment, net 22,427,769 23,481,001 Restricted cash 2,553,902 2,757,299 Accrued interest receivable 326, ,274 Leased vehicles, net 10,160,327 8,564,628 Furniture and equipment, net 69,609 67,509 Federal, state and other income taxes receivable 95,060 87,352 Related party taxes receivable 467 1,087 Goodwill 74,056 74,056 Intangible assets, net 29,734 32,623 Due from affiliates 33,270 31,270 Other assets 913, ,410 Total assets $ 39,422,304 $ 38,539,104 Liabilities and Equity Liabilities: Notes payable credit facilities $ 4,848,316 $ 6,739,817 Notes payable secured structured financings 22,557,895 21,608,889 Notes payable related party 3,754,223 2,975,000 Accrued interest payable 38,529 33,346 Accounts payable and accrued expenses 429, ,021 Deferred tax liabilities, net 897,121 1,278,064 Due to affiliates 82,382 50,620 Other liabilities 333, ,728 Total liabilities 32,941,803 33,300,485 Equity: Common stock, $0.01 par value 3,605 3,589 Additional paid-in capital 1,681,558 1,657,611 Accumulated other comprehensive income, net 44,262 28,259 Retained earnings 4,751,076 3,549,160 Total stockholders equity 6,480,501 5,238,619 Total liabilities and equity $ 39,422,304 $ 38,539,104 5

9 Table 2: Consolidated Statements of Income Three Months Ended December 31, Year Ended December (Unaudited, Dollars in thousands, except per share amounts) Interest on finance receivables and loans $ 1,129,181 $ 1,222,468 $ 4,755,678 $ 5,026,790 Leased vehicle income 483, ,020 1,788,457 1,487,671 Other finance and interest income 4,470 3,695 19,885 15,135 Total finance and other interest income 1,616,679 1,627,183 6,564,020 6,529,596 Interest expense 236, , , ,484 Leased vehicle expense 370, ,229 1,298, ,459 Net finance and other interest income 1,009,542 1,131,974 4,317,773 4,726,653 Provision for credit losses 562, ,711 2,254,361 2,468,200 Net finance and other interest income after provision for credit losses 447, ,263 2,063,412 2,258,453 Profit sharing 7,235 12,176 29,568 47,816 Net finance and other interest income after provision for credit losses and profit sharing 439, ,087 2,033,844 2,210,637 Investment gains (losses), net (137,926) (168,344) (366,439) (444,759) Servicing fee income 26,031 32, , ,134 Fees, commissions, and other 74,179 88, , ,171 Total other income (loss) (37,716) (47,996) 101,106 93,546 Compensation expense 182, , , ,224 Repossession expense 70,259 75, , ,355 Other operating costs 173,089 93, , ,893 Total operating expenses 426, ,905 1,311,436 1,143,472 Income before income taxes (23,795) 90, ,514 1,160,711 Income tax expense (603,911) 28,911 (364,092) 394,245 Net income $ 580,116 $ 61,275 $ 1,187,606 $ 766,466 Net income per common share (basic) $ 1.61 $ 0.17 $ 3.30 $ 2.14 Net income per common share (diluted) $ 1.61 $ 0.17 $ 3.30 $ 2.13 Dividends paid per common share $ 0.03 $ 0.03 Weighted average common shares (basic) 360,256, ,582, ,613, ,280,814 Weighted average common shares (diluted) 361,409, ,323, ,292, ,078,337 6

10 Table 3: Other Financial Information Ratios Three Months Ended December 31, Year Ended December 31, (Unaudited, Dollars in thousands) Yield on individually acquired retail installment contracts 15.4% 15.8% 15.7% 16.1 % Yield on purchased receivables portfolios 30.1% 18.1% 20.6% 24.3 % Yield on receivables from dealers 2.7% 5.1% 5.3% 5.2 % Yield on personal loans (1) 23.9% 22.9% 24.5% 23.9 % Yield on earning assets (2) 12.6% 13.5% 13.2% 14.1 % Cost of debt (3) 3.1% 2.8% 3.0% 2.6 % Net interest margin (4) 10.2% 11.3% 10.8% 12.0 % Expense ratio (5) 3.5% 2.3% 2.6% 2.2 % Return on average assets (6) 6.0% 0.6% 3.0% 2.0 % Return on average equity (7) 38.5% 4.7% 21.0% 15.8 % Net charge-off ratio on individually acquired retail installment contracts (8) 10.3% 9.9% 8.9% 8.3 % Net charge-off ratio on purchased receivables portfolios (8) 4.5% 1.3% 1.4% % Net charge-off ratio on receivables from dealers (8) % 1.5% % 0.5 % Net charge-off ratio on personal loans (8) 0.5% % 0.6% % Net charge-off ratio (8) 10.3% 9.8% 8.9% 8.2 % Delinquency ratio on individually acquired retail installment contracts held for investment, end of period (9) 5.4% 5.1% 5.4% 5.1 % Delinquency ratio on personal loans, end of period (9) 11.5% 11.3% 11.5% 11.3 % Delinquency ratio on loans held for investment, end of period (9) 5.4% 5.1% 5.4% 5.1 % Allowance ratio (10) 12.6% 12.6% 12.6% 12.6 % Common stock dividend payout ratio (11) 1.9% % 0.9% % Common Equity Tier 1 capital ratio (12) 16.3% 13.4% 16.3% 13.4 % Other Financial Information Charge-offs, net of recoveries, on individually acquired retail installment contracts $ 671,418 $ 674,442 $ 2,394,102 $ 2,257,849 Charge-offs, net of recoveries, on purchased receivables portfolios ,055 (17) Charge-offs, net of recoveries, on receivables from dealers Charge-offs, net of recoveries, on personal loans 1,576 8,126 Charge-offs, net of recoveries, on capital leases 525 2,219 4,310 9,384 Total charge-offs, net of recoveries $ 674,033 $ 677,709 $ 2,408,593 $ 2,267,609 End of period delinquent principal over 60 days, individually acquired retail installment contracts held for investment $ 1,404,620 $ 1,386,218 $ 1,404,620 $ 1,386,218 End of period personal loans delinquent principal over 60 days $ 175,660 $ 176,873 $ 175, ,873 End of period delinquent principal over 60 days, loans held for investment $ 1,407,456 $ 1,392,789 $ 1,407,456 $ 1, End of period assets covered by allowance for credit losses $ 25,988,819 $ 27,229,276 $ 25,988,819 $ 27,229,276 End of period gross individually acquired retail installment contracts held for investment $ 25,943,288 $ 27,127,973 $ 25,943,288 $ 27,127,973 End of period gross personal loans $ 1,524,158 $ 1,558,790 $ 1,524,158 $ 1,558,790 End of period gross finance receivables and loans held for investment $ 26,009,206 $ 27,427,578 $ 26,009,206 $ 27,427,578 End of period gross finance receivables, loans, and leases held for investment $ 37,207,665 $ 37,040,531 $ 37,207,665 $ 37,040,531 Average gross individually acquired retail installment contracts held for investment $ 26,091,257 $ 27,225,198 $ 26,754,780 $ 27,253,756 Average gross personal loans held for investment $ 7,997 $ 21,047 $ 12,476 $ 9,995 Average gross individually acquired retail installment contracts $ 27,098,976 $ 28,604,117 $ 27,926,229 $ 28,652,897 Average gross purchased receivables portfolios 45, , , ,354 Average Gross receivables from dealers 15,927 69,745 52,435 71,997 Average Gross personal loans 1,392,528 1,405,187 1,419,417 1,413,440 Average Gross capital leases 22,232 34,584 25,495 45,949 Average Gross finance receivables and loans $ 28,575,570 $ 30,355,037 $ 29,569,938 $ 30,470,637 Average Gross finance receivables, loans, and leases $ 39,663,931 $ 39,941,127 $ 40,026,059 $ 39,289,341 Average managed assets $ 48,971,677 $ 52,038,692 $ 50,110,765 $ 52,731,119 7

11 Three Months Ended December 31, Year Ended December 31, (Unaudited, Dollars in thousands) Average total assets $ 38,992,937 $ 38,513,454 $ 39,163,887 $ 37,944,529 Average debt $ 30,804,384 $ 31,416,694 $ 31,385,153 $ 31,330,686 Average total equity $ 6,021,944 $ 5,185,840 $ 5,663,469 $ 4,850,653 (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 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 Amounts related to our individually acquired retail installment contracts as of and for the three and twelve months December 31, 2017 and 2016, are as follows: (Unaudited, Dollars in thousands) Three Months Ended December 31, Twelve Months Ended December 31, Credit loss allowance beginning of period $ 3,371,265 $ 3,401,285 $ 3,411,055 $ 3,197,414 Provision for credit losses 561, ,213 2,244,182 2,471,490 Charge-offs (1,253,745) (1,293,744) (4,796,216) (4,723,649) Recoveries 582, ,301 2,402,114 2,465,800 Credit loss allowance end of period $ 3,261,135 $ 3,411,055 $ 3,261,135 $ 3,411,055 Net charge-offs $ 671,418 $ 674,442 $ 2,394,102 $ 2,257,848 Average unpaid principal balance (UPB) held for investment 26,091,257 27,225,198 26,754,780 27,253,756 Charge-off ratio % 9.9% 8.9% 8.3% December 31, December 31, Principal days past due $ 2,823, % $ 2,911, % Delinquent principal over 59 days 3 1,507, % 1,520, % Total delinquent contracts $ 4,330, % $ 4,121, % December 31, September 30, TDR - Unpaid principal balance $ 6,261,894 $ 5,599,567 $ 6,276,659 $ 5,332,767 Non-TDR - Unpaid principal balance $ 19,681,394 $ 21,528,406 $ 20,044,330 $ 22,038,228 Total - Unpaid principal balance $ 25,943,288 $ 27,127,973 $ 26,320,989 $ 27,370,995 Total - Allowance $ 3,261,135 $ 3,411,055 $ 3,371,265 $ 3,401,285 Total allowance ratio 12.6% 12.6% 12.8% 12.4% 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

13 Table 5: Originations Three Months Ended Twelve Months Ended Three Months Ended December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 September 30, 2017 Retained Originations (Unaudited, Dollar amounts in thousands) Retail installment contracts $ 3,014,433 $ 3,068,154 $ 11,634,395 $ 12,726,912 $ 2,570,228 Average APR 14.0% 15.4% 16.4% 15.7% 16.1% Average FICO (a) Discount 0.2% 0.3% 0.7% 0.5% 1.2% Personal loans (b) $ 528,705 $ 570,632 $ 1,477,249 $ 1,555,783 $ 309,779 Average APR 25.7% 25.2% 25.7% 25.1% 25.7% Discount Leased vehicles $ 1,294,256 $ 971,865 $ 5,987,648 $ 5,584,149 $ 1,665,776 Capital leases $ 4,640 $ 1,424 $ 9,295 $ 7,401 $ 2,477 Total originations retained $ 4,842,034 $ 4,612,075 $ 19,108,587 $ 19,874,245 $ 4,548,260 Sold Originations Retail installment contracts $ $ 484,916 $ 2,550,065 $ 3,573,658 $ 757,720 Average APR % 4.4% 6.2% 4.3% 6.0% Average FICO (c) Total originations sold $ $ 484,916 $ 2,550,065 $ 3,573,658 $ 757,720 Total SC originations $ 4,842,034 $ 5,096,991 $ 21,658,652 $ 23,447,903 $ 5,305,980 Total originations $ 4,842,034 $ 5,096,991 $ 21,658,652 $ 23,447,903 $ 5,305,980 (a) (b) (c) Unpaid principal balance excluded from the weighted average FICO score is $372 million, $426 million, $1.5 billion, and $2.1 billion and $311 million for the three months ended December 31, 2017 and 2016, the twelve months ended December 31, 2017 and 2016, and the three months ended September 30, 2017, respectively, as the borrowers on these loans did not have FICO scores at origination. Of these amounts, $68 million, $71 million, $164 million, $364 million, and $37 million, respectively, were commercial loans. Effective 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. Unpaid principal balance excluded from the weighted average FICO score is zero, $50 million, $317 million, $451 million and $93 million for the three months ended December 31, 2017 and 2016, the twelve months ended December 31, 2017 and 2016, and the three months ended September 30, 2017, respectively, as the borrowers on these loans did not have FICO scores at origination. Of these amounts, zero, $8 million, $102 million, $86 million, and $26 million, respectively, were commercial loans. 10

14 Table 6: Asset Sales Asset sales may include assets originated in prior periods. Three Months Ended Twelve Months Ended Three Months Ended December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 (Unaudited, Dollar amounts in thousands) September 30, 2017 Retail installment contracts $ $ 1,381,036 $ 2,979,033 $ 3,694,019 $ 1,482,134 Average APR % 6.3% 6.2% 4.2% 6.2% Average FICO Personal loans $ $ $ $ 869,349 $ Average APR % % % 17.9% % Total asset sales $ $ 1,381,036 $ 2,979,033 $ 4,563,368 $ 1,482,134 11

15 Table 7: Ending Portfolio Ending outstanding balance, average APR and remaining unaccreted discount of our held for investment portfolio as of December 31, 2017, and December 31, 2016, are as follows: December 31, 2017 December 31, 2016 ( Unaudited, Dollar amounts in thousands) Retail installment contracts $ 25,986,532 $ 27,358,147 Average APR 16.5% 16.4% Discount 1.5% 2.3% Personal loans $ 6,887 $ 19,361 Average APR 31.8% 31.5% Receivables from dealers $ 15,787 $ 69,431 Average APR 4.2% 4.9% Leased vehicles $ 11,175,602 $ 9,612,953 Capital leases $ 22,857 $ 31,872 12

16 Table 8: Reconciliation of Non-GAAP Measures December 31, 2017 December 31, 2016 (Unaudited, Dollar amounts in thousands) Total equity $ 6,480,501 $ 5,238,619 Deduct: Goodwill, intangibles, and other assets, net of deferred tax liabilities 172, ,930 Deduct: Accumulated other comprehensive income (loss), net 44,262 28,259 Tier 1 common capital $ 6,263,575 $ 5,023,430 Risk weighted assets (a) $ 38,473,339 $ 37,432,700 Common Equity Tier 1 capital ratio (b) 16.3% 13.4% (a) (b) Tier 1 common capital $ 6,263,575 $ 5,023,430 Adjustments for significant items: Deduct: Tax Reform (c) 652,366 Deduct: Gain on RV/Marine Portfolio (after tax) (d) 23,353 Add: Legal reserves (after tax) (e) 72,100 Add: Settlement with former CEO (after tax) (f) 42,975 Adjusted Tier 1 common capital $ 5,702,931 $ 5,023,430 Risk weighted assets (a) $ 38,473,339 $ 37,432,700 Adjusted Common Equity Tier 1 capital ratio 14.8% 13.4% 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. CET1 is calculated under Basel III regulations required as of January 1, The fully phased-in capital ratios are non-gaap financial measures. (c) Net tax benefit due to re-measurement of all deferred tax assets (DTAs) and deferred tax liabilities (DTLs) at a federal tax rate of 21% (as compared to 35%). (d) During the three months ended September 30, 2017, SC sold certain receivables previously acquired with deteriorated credit quality at a gain. (e) During the three months ended December 31, 2017, the Company recorded accrual for legal reserves related to certain lawsuits, regulatory matters and other legal proceedings, based on availability of additional information and ability to reliably estimate the potential liability. (f) On November 15, 2017, the Company entered into a Settlement Agreement with Thomas G. Dundon (former CEO) that, among other things, altered certain portions of the economic arrangements set forth in the Separation Agreement. 13

17 Table 9: Reconciliation of Non-GAAP Measures Three Months Ended December 31, 2017 For the Year Ended December 31, 2017 (Unaudited, Dollar amounts in thousands) GAAP Operating Expenses $ 426,040 $ 1,311,436 Deduct: Legal Reserves 91,000 91,000 Deduct: Settlement with former CEO 66,115 66,115 Adjusted Operating Expenses, excluding significant items $ 268,925 $ 1,154,321 GAAP Pre-Tax (Loss)/Income $ (23,795) $ 823,514 Add: Legal Reserves 91,000 91,000 Add: Settlement with former CEO 66,115 66,115 Deduct: Gain on RV/Marine Portfolio 35,927 Adjusted Pre-Tax Income, excluding significant items $ 133,320 $ 944,702 GAAP Net Income $ 580,116 $ 1,187,606 Adjustments for significant items: Deduct: Tax Reform and other tax related items (a) 596, ,366 Deduct: Gain on RV/Marine Portfolio (after tax) 23,353 Add: Legal reserves (after tax) 72,100 72,100 Add: Settlement with former CEO (after tax) 42,975 42,975 Adjusted Net Income, excluding significant items $ 98,486 $ 626,962 GAAP Diluted Earnings per common share (b) $ 1.61 $ 3.30 Adjusted Diluted Earnings per common share, excluding significant items (b) $ 0.27 $ 1.74 Adjusted Selected Ratios GAAP Return on Average Assets (b) 6.0% 3.0% Adjusted Return on Average Assets, excluding significant items (b) 1.0% 1.6% Average Assets $ 38,992,937 $ 39,163,887 GAAP Return on Average Equity (b) 38.5% 21.0% Adjusted Return on Average Equity, excluding significant items (b) 6.7% 11.1% Average adjusted Equity excluding significant items $ 5,901,536 $ 5,628,906 GAAP Expense Ratio (c) 3.5% 2.6% Adjusted Expense Ratio, excluding significant items (c) 2.2% 2.3% Average Managed Assets $ 48,971,677 $ 50,110,765 (a) (b) (c) In addition to the tax adjustments noted under footnote c under Table 8, during the three months ended December 31, 2017, the Company changed the classification of earnings from its subsidiary, Santander Consumer International Puerto Rico, LLC, and no longer intends to permanently reinvest the earnings outside of the United States. As a result of this change, the Company recognized $55.7 million of additional income tax expense during the three months ended December 31, 2017 to record the applicable U.S. deferred income tax liability. These ratios correspond with the GAAP Net Income and Adjusted Net Income (excluding significant items) shown above, divided by Average Assets, Average Equity or Weighted average number of common shares outstanding, as applicable. These ratios correspond with the GAAP Operating Expenses and Adjusted Operating Expenses (excluding significant items) shown above, divided by Average Managed Assets. 14

18 SANTANDER CONSUMER USA HOLDINGS INC. Fourth Quarter and Full Year 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 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 3» Net income for the full year 2017 was $1.2 billion, or $3.30 per diluted common share. Net income, excluding the impact of significant items including tax reform and other tax related items, legal reserves, and a settlement with the former CEO ( Adjusted1 ) was $627 million, or $1.74 per diluted common share.» The Federal Reserve Bank of Boston ( Federal Reserve ) terminated the 2014 Written Agreement with SC's majority owner, Santander Holdings USA, Inc. ( SHUSA ), following its non-objection to SHUSA's Comprehensive Capital Analysis and Review submission. SHUSA and SC now operate within a normal capital cycle and SC completed its first cash dividend payment to shareholders since 2014.» SHUSA and Banco Santander ( Santander ) reaffirmed their commitment to SC by increasing their total ownership in SC to approximately 68.1%, following Santander's acquisition from SC's former CEO of 9.6% of SC's outstanding shares, which it transferred to SHUSA.» Launched flow program with Santander allowing SC to execute prime auto loan sales of $2.6 billion, and through Santander Bank N.A., increased FCA dealer receivables ( floorplan ) 14% YoY, to $2.0 billion.» Leading auto loan ABS issuer with $7.9 billion in ABS offered and sold, including SC's inaugural lease securitization, Santander Retail Auto Lease Trust ( SRT ) and SC's first public DRIVE securitization.» RIC gross charge-off ratio of 17.9%, up 60 basis points YoY, stabilizing compared to a 230 basis point increase from 2015 to 2016 and RIC net charge-off ratio of 8.9%, up 60 basis points YoY, compared to a 140 basis point increase from 2015 to 2016.» ROA of 3.0% and Adjusted ROA of 1.6%, down from 2.0% in FY FY 2017 HIGHLIGHTS 1 Please refer to the appendix for a reconciliation of these significant items to GAAP. Amounts excluding significant items are non-gaap financial measures that management believes will assist users of SC's financial information by excluding items that management does not believe reflect SC's fundamental business performance or results of operations.

21 4 Max 3.2% 3.2% Min -4.1% Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 ECONOMIC 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 95.9 Max 99.1 Min 55.3 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Max 10.0% Min: 4.1% 4.1% Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17

22 5 43.0% 43.4% 47.9% 46.4% 35% 40% 45% 50% 55% 60% 65% 70% Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 SC Auction Only Recovery Rate SC Auction Plus Recovery Rate (Quarterly) Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Manheim (Left Axis) JDP Used-Vehicle Price Index (Right Axis) 7.8% Max 13.3% Min 2.8% Nov-07 Nov-09 Nov-11 Nov-13 Nov-15 Nov-17 Subprime 4.8% Max 5.4% Min 1.6% Nov-07 Nov-09 Nov-11 Nov-13 Nov-15 Nov-17 Subprime 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 November 31, 2017)

23 6DISCIPLINED LOAN UNDERWRITING CONTINUES IN 4Q17 1 Approximate FICO score 2 Includes some capital lease originations YoY auto origination decreases driven by disciplined underwriting in a competitive market $ in millions Q Q Quarterly YoY FYoFY Total Core Retail Auto 2,010$ 1,469$ 8,702$ 7,470$ (27%) (14%) Chrysler Capital Loans (<640) ,829 3,372 (4%) (12%) Chrysler Capital Loans ( 640) ,202 3,341 4% (20%) Total Chrysler Capital Retail 1,543 1,545 8,031 6,713 0% (16%) Total Leases ,299 5,159 5,997 34% 16% Total Auto Originations 4,526 4,313 21,892 20,180 (5%) (8%) Total Personal Lending ,556 1,477 (7%) (5%) Total Originations 5,097$ 4,842$ 23,441$ 21,658$ (5%) (8%) Asset Sales 1,381-4,563 2,979 N/A (35%) Serviced for Others Portfolio 11,945 8,643 11,945 8,643 (28%) (28%) Average Managed Assets 52,039 48,972 52,731 50,111 (6%) (5%) % VarianceQuarterly Originations Full Year Originations Balances Balances

24 7 Q quarterly penetration rate of 18% vs. 21% in Q Completed national roll out of Chrysler Capital VIP program in Q with more than 2,500 dealerships participating Through Santander Bank N.A., increased FCA dealer receivables ( floorplan ) 14% year-over-year, to $2.0 billion CHRYSLER CAPITAL 1 FCA filings; sales as reported on 01/01/2018 SC continues to collaborate with FCA to further strengthen the relationship and create value within the Chrysler Capital program FCA Sales1 (units in millions)

25 8 Flow Programs ,347 CCART 904 Other sales 135 Santander flow program totaling $2.6 billion in 2017 Recent trend in total balance related to lower prime originations and timing of asset sales to Santander Growth in SFO remains dependent upon Chrysler Capital penetration, FCA prime originations and timing of sales in the Santander flow program SERVICED FOR OTHERS (SFO) PLATFORM Composition at 12/31/2017 RIC 88% Leases 4% RV/Marine 8% Total 100% Serviced for Others Balances (End of Period) *Sales with retained servicing during period, also include non-santander sales. $11,945 $11,015 $9,881 $9,957 $8,643 4Q16 1Q17 2Q17 3Q17 4Q17 $ in Millions

26 9» Net income for the fourth quarter of 2017 was $580 million, or $1.61 per diluted common share. Adjusted net income totaled $98 million, or $0.27 per diluted common share» Total auto originations of $4.6 billion, down 6%, YoY» Core retail auto originations of $1.5 billion, down 27% YoY» Chrysler Capital loan originations of $1.5 billion, flat YoY» Chrysler Capital lease originations of $1.3 billion, up 31% YoY» Net finance and other interest income of $1.0 billion, down 11% YoY» Return on average assets ( ROA ) of 6.0% and Adjusted ROA of 1.0%, up from 0.6% in Q4 2016» CET1 ratio of 16.3%» $2.2 billion in ABS offered and sold, including SDART, DRIVE and inaugural lease ABS transaction (SRT)» In January 2018, SC partnered with Santander InnoVentures, a corporate venture fund, to become a lending choice on AutoFi's online finance platform to streamline and simplify the car buying process for consumers, while providing dealers a robust digital sales channel Q HIGHLIGHTS AND SUBSEQUENT EVENT *Adjusted net income and ROA are non-gaap financial measures. For a reconciliation of non-gaap financial measures to GAAP, see accompanying Appendix.

27 10Q FINANCIAL RESULTS December 31, 2017 September 30, 2017 December 31, 2016 QoQ YoY Interest on finance receivables and loans 1,129,181$ 1,185,059$ 1,222,468$ (5%) (8%) Net leased vehicle income 112, , ,791 (5%) (8%) Other finance and interest income 4,470 6,385 3,695 (30%) 21% Interest expense 236, , ,980 (6%) 9% Net finance and other interest income 1,009,542$ 1,059,121$ 1,131,974$ (5%) (11%) Provision for credit losses 562, , ,711 5% (18%) Profit sharing 7,235 5,945 12,176 22% (41%) Total other income (37,716) 58,947 (47,996) (164%) (21%) Total operating expenses 426, , ,905 43% 44% Income before tax (23,795)$ 277,773$ 90,186$ (109%) (126%) Income tax expense (603,911) 78,385 28,911 N/A N/A Net income 580,116$ 199,388$ 61,275$ 191% 847% Diluted EPS ($) 1.61$ 0.55$ 0.17$ 193% 848% Average total assets 38,992,937$ 39,496,278$ 38,513,454$ (1%) 1% Average managed assets 48,971,677$ 49,998,111$ 52,038,692$ (2%) (6%) % Variance Three Months Ended (Unaudited, Dollars in Thousands, except per share)

28 11CREDIT QUALITY: VINTAGE LOSS PERFORMANCE 2016 vintage continues to outperform the 2015 vintage on a gross and net loss basis *Retained originations only 0% 3% 5% 8% 10% 13% Cu m ul at iv e N et L os s Ra te Months on Book Total Annual Vintage Cumulative Net Loss Rate % 5% 10% 15% 20% 25% Cu m ul at iv e G ro ss L os s Ra te Months on Book Total Annual Vintage Cumulative Gross Loss Rate

29 12DELINQUENCY AND LOSS YoY delinquency increased for each delinquency bucket primarily driven by a lower portfolio balance YoY gross charge-off ratio increased 20 basis points YoY net charge-off ratio increased 40 basis points 10.0% 7.3% 9.3% 9.2% 10.3% 5.1% 3.8% 4.7% 5.1% 5.4% 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 % 18.1% 16.4% 18.0% 19.2% 9.9% 8.8% 7.5% 9.1% 10.3% 47.9% 51.1% 53.9% 49.3% 46.4% 45.0% 50.0% 55.0% 60.0% 65.0% 70.0% 75.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 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)

30 13 $674 $671 $10 $18 ($31) Q Recoveries Other Lower Balance and Mix Q Q to Q Net Charge-Off Walk ($ in millions) CREDIT QUALITY: LOSS DETAIL

31 14 $3,381 $3,270 $103 $80 ($90) ($204) $3,100 $3,150 $3,200 $3,250 $3,300 $3,350 $3,400 $3,450 $3,500 $3,550 $3,600 Q New Volume TDR Migration Performance Adjustment Liquidations & Other Q Q to Q ALLL Reserve Walk ($ in millions) PROVISION AND RESERVES 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 QoQ allowance decreased $111 million New volume and TDR migration1 were offset by performance adjustment and liquidations and other QoQ outstanding TDR balance relatively flat Allowance to loans ratio decreased 20 bps to 12.6% QoQ Provision for credit losses decreased $124 million YoY $686 $635 $521 $536 $ % 12.7% 12.6% 12.8% 12.6% $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

32 15 $52,039 $51,230 $50,436 $49,998 $48,972 $296 $305 $282 $298 $ % 2.4% 2.2% 2.4% 3.5% 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 $426 million, an increase of 44% versus the same quarter last year Adjusted operating expenses decreased $27 million, down 9% year-over-year $426 *Adjusted operating expense is a non-gaap financial measure. For a reconciliation of non-gaap financial measures to GAAP, see accompanying Appendix. 2.2% Adjusted Expense Ratio

33 Q Q Unused Used Q Q $17.5 billion in commitments from 12 lenders1 59% unused capacity on revolving lines at Q FUNDING AND LIQUIDITY Total funding of $40.3 billion at the end Q4 2017, down 5% from $42.3 billion at the end of Q Asset-Backed Securities ($ Billions) Financings ($ Billions) Banco Santander & Subsidiaries ($ Billions) Asset Sales ($ Billions) Offered and sold $2.2 billion in asset-backed securities (ABS) Launched inaugural lease securitization (SRT) $7.8 billion in total commitments 52% unused revolving capacity at Q No asset sales in Q4 expect to complete a sale during Q Amortizing Revolving Sant der & Subsidiaries 1.5 Q Q Q Q Q Q Term Revolving Contingent Does not include repo facilities

34 17CONSISTENT CAPITAL GENERATION 1 Net tax benefit due to re-measurement of all deferred tax assets (DTAs) and deferred tax liabilities (DTLs) at a federal tax rate of 21% (as compared to 35%). 2 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. 3 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 1 2 SC has exhibited a strong ability to generate earnings and capital, while growing assets. Tangible Assets $38,432 $38,956 $39,401 $38,660 $39,319 Tangible Common Equity $5,132 $5,313 $5,572 $5,780 $6,377 $ in millions The Company has declared a cash dividend of $0.05 per share, to be paid February 22, 2018 to shareholders of record as of the close of business on February 12, 2018 CET1 impacted by net tax benefit due to re-measurement of all deferred tax assets (DTAs) and deferred tax liabilities (DTLs) at a federal tax rate of 21% (as compared to 35%). See accompanying appendix for additional details. 13.4% 13.8% 14.3% 15.0% 16.3% 13.4% 13.6% 14.1% 14.9% 16.2% Q Q Q Q Q CET1 TCE/TA

35 APPENDIX

36 19SANTANDER CONSUMER USA HOLDINGS INC. 1 As of December 31, 2017 Santander Consumer USA Holdings Inc. (NYSE:SC) ( SC ) is approximately 68.1%1 owned by Santander Holdings USA, Inc. ( SHUSA ), a wholly-owned subsidiary of Banco Santander, S.A. (NYSE:SAN) 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 5,100 full-time, 40 part-time and 1,500 vendor-based employees across multiple locations in the U.S. and the Caribbean Our strategy is to leverage our scalable technology, data and risk infrastructure to underwrite, originate and service profitable assets while treating employees, dealers, and customers in a simple, personal and fair manner Compliance and responsible practices focus Strengthening our relationship with FCA and improving dealer experience Continuous optimization of the mix of assets retained vs. assets sold and serviced for others Retain core and Chrysler nonprime and lease assets, sell Chrysler prime assets via Santander flow agreement Efficient funding through key third-party relationships, secondary markets and Santander Overview Strategy

37 20COMPANY ORGANIZATION Other Subsidiaries 100% Ownership Santander Holdings USA, Inc. ( SHUSA ) ~68.1% Ownership Santander Consumer USA Holdings Inc. ( SC ) Santander Bank, N.A. Other Subsidiaries Banco Santander, S.A. Spain *Ownership percentages are approximates as of December 31, % Ownership Public Shareholders

38 21 2% 2% 2% 2% 2% 11% 12% 12% 10% 10% 15% 18% 17% 14% 14% 24% 25% 24% 23% 24% 15% 13% 13% 13% 13% 32% 30% 33% 38% 36% 4Q16 1Q17 2Q17 3Q17 4Q17 Originations by Credit (RIC only) ($ in millions) > <540 No FICO Commercial ORIGINATIONS EXHIBIT DISCIPLINED UNDERWRITING 1 Loans to commercial borrowers; no FICO score obtained Originations < 640 were down $486 million YoY Stable mix Recent pickup in new vehicles, reflected in higher average loan balance in dollars Average loan balance in dollars $21,488 $20,193 $20,816 $21,825 $22,013 $2,406 $4,055 $3,328 $3,014$3,787$3,553 53% 47% 48% 55% 53% 47% 53% 52% 45% 47% 4Q16 1Q17 2Q17 3Q17 4Q17 New/Used Originations (RIC only) ($ in millions) Used New $4,055 $3,328 $3,014$3,787$3,553 $1,920

39 22HELD FOR INVESTMENT CREDIT TRENDS Retail Installment Contracts1 1Held for investment; excludes assets held for sale 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 % 2. 5% 11.2 % 21.8 % 32.0 % 17.4 % 15.1 % Commercial Unknown < >=640 Q Q Q Q Q4 2017

40 23Q EXCLUDING PERSONAL LENDING DETAIL Quarterly Financial Details (Excluding Personal Lending) Total Personal Lending Excluding Personal Lending Total Personal Lending Excluding Personal Lending Total Personal Lending Excluding Personal Lending Interest on finance receivables and loans $ 1,129,181 $ 83,080 $ 1,046,101 $ 1,185,059 $ 83,475 $ 1,101,584 $ 1,222,468 $ 80,292 $ 1,142,176 Net leased vehicle income 112, , , , , ,791 Other finance and interest income 4,470-4,470 6,385-6,385 3,695-3,695 Interest expense 236,600 13, , ,674 12, , ,980 10, ,259 Net finance and other interest income $ 1,009,542 $ 69,082 $ 940,460 $ 1,059,121 $ 71,460 $ 987,661 $ 1,131,974 $ 69,571 $ 1,062,403 Provision for credit losses 562, , , , , ,711 Profit sharing 7, ,358 5,945 (143) 6,088 12,176 2,957 9,219 Investment Gains (losses), net (137,926) (136,393) (1,533) (52,592) (83,700) 31,108 (168,344) (145,730) (22,614) Servicing fee income 26,031-26,031 28,673-28,673 32,205-32,205 Fees, commissions and other 74,179 45,830 28,349 82,866 47,380 35,486 88,143 48,527 39,616 Total other income $ (37,716) $ (90,563) $ 52,847 $ 58,947 $ (36,320) $ 95,267 $ (47,996) $ (97,203) $ 49,207 Average gross individually acquired retail installment contracts $ 27,098,976 - $ 28,144,133 - $ 28,604,117 - Average gross personal loans - $ 1,392,529 - $ 1,367,445 - $ 1,405,187 Average gross operating leases $ 11,088,361 - $ 10,710,941 - $ 9,586,090 - As of and for the Three Months Ended (Unaudited, Dollars in Thousands) December 31, 2017 September 30, 2017 December 31, 2016 *The $136 million of investment losses related personal lending, comprised of $114 million in customer default activity and $23 million increase in market discount, consistent with typical seasonal patterns.

41 24FY 2017 EXCLUDING PERSONAL LENDING DETAIL As Reported Personal Lending Excluding Personal Lending Interest on finance receivables and loans $ 4,755,678 $ 347,873 $ 4,407,805 Net leased vehicle income 489, ,944 Other finance and interest income 19,885-19,885 Interest expense 947,734 50, ,414 Net finance and other interest income 4,317, ,553 4,020,220 Provision for credit losses 2,254,361 10,691 2,243,670 Profit sharing 29, ,933 Investment gains (losses), net (366,439) (374,360) 7,921 Servicing fee income 118, ,341 Fees, commissions and other 349, , ,702 Total other income $ 101,106 $ (170,858) $ 271,964 Average gross individually acquired RICs $ 27,926,229 - Average gross personal loans - $ 1,419,417 Average gross operating leases $ 10,456,121 - For the Year Ended ($ in Thousands) December 31, 2017