Important information

Transcription

1 26 April

2 Important information 2 Banco Santander, S.A. ("Santander") cautions that this presentation contains forward-looking statements. These forward-looking statements are found in various places throughout this presentation and include, without limitation, statements concerning our future business development and economic performance. While these forward-looking statements represent our judgment and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to: (1) general market, macroeconomic, governmental and regulatory trends; (2) movements in local and international securities markets, currency exchange rates and interest rates; (3) competitive pressures; (4) technological developments; and (5) changes in the financial position or credit worthiness of our customers, obligors and counterparties. The risk factors that we have indicated in our past and future filings and reports, including those with the Securities and Exchange Commission of the United States of America (the SEC ) could adversely affect our business and financial performance. Other unknown or unpredictable factors could cause actual results to differ materially from those in the forwardlooking statements. Forward-looking statements speak only as of the date on which they are made and are based on the knowledge, information available and views taken on the date on which they are made; such knowledge, information and views may change at any time. Santander does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. The information contained in this presentation is subject to, and must be read in conjunction with, all other publicly available information, including, where relevant any fuller disclosure document published by Santander. Any person at any time acquiring securities must do so only on the basis of such person's own judgment as to the merits or the suitability of the securities for its purpose and only on such information as is contained in such public information having taken all such professional or other advice as it considers necessary or appropriate in the circumstances and not in reliance on the information contained in the presentation. In making this presentation available, Santander gives no advice and makes no recommendation to buy, sell or otherwise deal in shares in Santander or in any other securities or investments whatsoever. Neither this presentation nor any of the information contained therein constitutes an offer to sell or the solicitation of an offer to buy any securities. No offering of securities shall be made in the United States except pursuant to registration under the U.S. Securities Act of 1933, as amended, or an exemption therefrom. Nothing contained in this presentation is intended to constitute an invitation or inducement to engage in investment activity for the purposes of the prohibition on financial promotion in the U.K. Financial Services and Markets Act Note: Statements as to historical performance or financial accretion are not intended to mean that future performance, share price or future earnings (including earnings per share) for any period will necessarily match or exceed those of any prior year. Nothing in this presentation should be construed as a profit forecast.

3 3 Agenda Group performance Q1'12 Highlights Results Business areas performance Q1'12 Conclusions Appendix

4 Q1 12 Highlights Solid generation of recurring results Diversification: differential element vs. competitors Strong balance sheet Strong revenues generation 11,354 mill. +8% High-growth emerging countries 56% of profit Core Capital (BIS II) 10.10% Pre-provision profit 6,280 mill. +9% Very strong local franchises Market shares above 10% Loan-todeposit ratio 115% Attributable profit 1,604 mill. Increased presence in growth countries Poland Credit quality SAN better than Peers

5 1 Solid profits generation 5 Very good quarter in revenues with expenses under control Revenues and expenses 10,482 10,921 10,722 10,629 11,354 4,731 4,826 4,909 5,093 5,074 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Gross income Expenses

6 1 Solid results generation 6 that maintained an excellent track-record in pre-provision profit Pre-provision profit +9% 5,750 6,095 5,813 5, % 6,280 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12

7 1 Solid results generation 7 and enabled the "cyclically high" provisions to be absorbed while maintaining profit Accounting attributable profit Attributable profit (w/o impact from generic* and Q4'11 extraordinary provisions) 2,108 1,393 1,803 1,604 1,809 1,421 1,721 1,666 1, (*) Total impact of generic provisions is eliminated, both the ones recorded in loan-loss provisions and the ones in other results (guarantees)

8 2 Diversification 8 These recurring results are underpinned by the Group's diversification and an adequate geographic balance Attributable profit Q1'12 (1) Germany Other Europe UK Poland Portugal Spain 4% 12% 1% 5% 3% 13% USA 10% 6% 6% 27% 13% Other Latam Chile Brazil Mexico Emerging markets with sustained growth Mature markets with stable provisions Mature markets with cyclically high provisions 56% 31% 13% (1) Over operating areas attributable profit

9 2 Diversification 9 The strong local positioning reached in core markets Reaching market shares 1 10% in most of our core markets is a differential element as regards the main world banks 4 Contribution to profits by market Grupo SAN C1 C2 C3 C4 C5 C6 C7 C8 C9 C10 0% 25% 50% 75% 100% (1) Loans (2) Total business,including operation announced on February 2012 regarding the merger of BZ WBK with Kredyt Bank (3) Consumer loans (4) 10 largest banks by market capitalisation

10 2 Diversification The recent merger agreement between BZ WBK and Kredyt Bank in Poland, fits perfectly with Santander's strategy and business 10 B100: Dec' Increased share in growth markets ,566 1,752 2, PLN million Real (1) GDP estimates 2,597 Poland New EU members (ex Poland) UE-15 Higher EPS, attractive ROI and almost neutral in capital Expected net profit (2) CAGR: % EUR 734 m 3,069 Improved critical mass 13% Branches Consolidating in the TOP 3 10% Business volumes Envisaged shareholders Minority interests 7.1%-8.5% KBC, 9,99% Additional max. SAN: 5.0% Santander 76.5% 81.5% 2011A 2012E 2013E 2014E 2015E (1) Source: EIU as of 24 February GDP at constant 2005 prices. (2) Including: BZ WBK standalone, Kredyt Bank standalone and synergies 16.4% KBC of which SAN will acquire a maximum of 5.0%

11 3 Strong balance sheet: Capital 11 Core capital ratio (BIS II) consolidates above 10% Core capital (BIS II) evolution 10.02% 10.10% 5.91% 6.25% 7.58% 8.61% 8.80% with an EBA ratio of 9.11%, above the required one Dec'06 Dec'07 Dec'08 Dec'09 Dec'10 Dec'11 Mar'12 Note: Dec 06 and Dec 07 according to BIS I

12 3 Strong balance sheet: Liquidity Further improvement in liquidity in the quarter in a highly demanding environment 12 Backed by deleveraging of the eurozone Var. Mar'12/Dec'11 in EUR bn. Loans Deposits Gap reduction: -11 bn. and reinforced by the the Group's high issuance capacity Q1'12. EUR Bn. M/L term maturities 2 12,2 M/L term issues 2 1 Latam UK Spain Moreover, EUR 3.8 bn. of securitisations 3 placed in the market Loan-to-deposit 1 ratio 150% 135% 117% 117% 115% D'08 D'09 D'10 D'11 M'12 Deposits 1 + M/L term financing / loans 115% 113% 116% 104% 106% D'08 D'09 D'10 D'11 M'12 (1) Including retail commercial paper (2) Excluding securitisations (3) Including structured financing

13 3 Strong balance sheet: Non-performance loans ratio Our ratios still compare very well in the main markets where we operate 13 Spain United Kingdom % (feb) % Dec'07 Dec'08 Dec'09 Dec'10 Sep'11 Dec'11 Mar' Dec'07 Dec'08 Dec'09 Dec'10 Sep'11 Dec'11 Brazil Latin America ex-brazil % Private banks Santander % Dec'07 Dec'08 Dec'09 Dec'10 Dec'11 Feb'12 Dec'07 Dec'08 Dec'09 Dec'10 Sep'11 Dec'11 Data in local criteria. Latest available data for the sector from central banks and Council Mortgage Lenders (UK)

14 3 Strong balance sheet: Non-performance loans ratio 14 The Group's NPLs continue sliding upwards, mainly due to Spain. The US and SCF improved in last quarters and the UK and Latam ex-brazil remained stable Group total Continental Europe % % Spain SCF Dec'10 Mar'11 Jun'11 Sep'11 Dec'11 Mar'12 D'10 M'11 J'11 S'11 D'11 M'12 D'10 M'11 J'11 S'11 D'11 M'12 United Kingdom and USA Latin America % UK USA % Brazil Latam Ex-Brazil D'10 M'11 J'11 S'11 D'11 M'12 D'10 M'11 J'11 S'11 D'11 M'12 D'10 M'11 J'11 S'11 D'11 M'12 D'10 M'11 J'11 S'11 D'11 M'12

15 3 Strong balance sheet: Coverage ratio 15 The Group's coverage is at 62%, 1 p.p. improvement in the quarter Group total Continental Europe % % Spain SCF Dec'10 Mar'11 Jun'11 Sep'11 Dec'11 Mar'12 D'10 M'11 J'11 S'11 D'11 M'12 D'10 M'11 J'11 S'11 D'11 M'12 United Kingdom and USA Latin America % UK USA % Brazil Latam Ex-Brazil D'10 M'11 J'11 S'11 D'11 M'12 D'10 M'11 J'11 S'11 D'11 M'12 D'10 M'11 J'11 S'11 D'11 M'12 D'10 M'11 J'11 S'11 D'11 M'12

16 16 Agenda Group performance Q1'12 Highlights Results Business areas performance Q1'12 Conclusions Appendix

17 Grupo Santander Results. Q1'12 vs. Q1'11 17 Solid P&L impacted in the year-on-year comparison by lower equity accounted income and lower release of generic provisions Var. / Q1'11 % excl. fx EUR Mill. Q1'12 Amount % and perimeter Net interest income + fee income 10, Trading gains Equity accounted income and other Gross income 11, Operating expenses -5, Net operating income 6, Loan-loss provisions (LLPs) -3,127-1, Net operating income after LLPs 3, Other results and provisions Profit before tax 2, Tax and minority interests Attributable profit 1, (1) Including dividends and other operating expenses

18 1 Gross income 18 Basic revenues as the main driver of profits Total Other 2 Trading gains 664 Group's gross income +8% % 10,482 10,921 10,722 10,629 +5% 11, Basic revenues Q1'12 / Q4'11: +EUR 530 mill.; +5% Q1'12 / Q4'11 Latam ,633 9,930 9,939 9,958 10,488 Continental Europe +153 Basic revenues 1 UK -97 US +19 (1) Basic revenues: Net interest income + fees + insurance activity (2) Dividends + equity accounted income + other operating expenses

19 2 Expenses 19 Expenses growing at a slower pace Group's expenses Expenses Q1'12 / Q4'11: -EUR 19 mill.; -0.4% +7% -0.4% Q1'12 / Q4'11 4,731 4,826 4,909 5,093 5,074 Latam -52 Continental Europe -33 UK +8 US -7

20 3 Loan-loss provisions Provisions still high at the current moment of the cycle. Their evolution was impacted by the lower use of generic ones 20 Specific provisions Net loan-loss provisions 1 2,418 2,549 2,784 2,674 3, % 2,065 2,546 2,711 2,577 3,127 Use of generic provisions (1) Including country-risk

21 21 Agenda Group performance Q1'12 Highlights Results Business areas performance Q1'12 Conclusions Appendix

22 Continental Europe Q1'12 Good revenues performance fuelled the profit for the quarter. Year-on-year comparison impacted by the release of generic provisions in Q1'11 22 Var. Q1'12 / Q1'11 Basic revenues Attributable profit EUR 584 mill. +8% Excluding perimeter +0% 3,023 Basic revenues +8% +5% 3,391 3,278 3,109 3,262 Gross income +10% +2% Operating expenses +8% -1% Attributable profit Net operating income Net op. income after provisions Attributable profit -30% -34% +11% +5% -36% -41%

23 Continental Europe Q1'12. Attributable profit by unit Generalised profit improvement over the fourth quarter of Santander Branch Network SCF Banesto Poland (BZ WBK) Portugal Q2 Q3 Q4 Q1'12 Other global Europe

24 Santander Branch Network Q1'12 24 Year-on-year comparison very affected by the non-release of generic provisions (EUR 258 mill. in Q1'11). Revenues, provisions and profit improved over Q4'11 Volumes evolution Var. Mar 12 / Mar 11 +2% -9% Activity Stock (EUR bn.) and LDR 1 130% 116% Basic revenues +4% +8% 1,072 1,136 1,094 1,031 1,116 Loans Deposits 2 Loans Deposits M' Loans Deposits M'12 Net interest income return Attributable profit Return / Cost Net interest inc. / ATAs 3.04% 3.65% 3.73% Return 2.77% 3.21% Cost % 1.32% 1.39% Q1'11 Q4'11 Q1'12 Q1'11 Q1'12 (1) Loan-to-deposit ratio (2) Including retail commercial paper

25 Banesto Q1'12 25 Year-on-year comparison very affected by release of generic provisions (EUR 91 million in Q1'11). All revenue lines improved and larger provisions in the quarter Activity Volumes evolution Stock (EUR bn.) and LDR 1 Var. Mar 12 / Mar % 122% % -8% Basic revenues +5% +6% Loans Deposits 2 2 Loans Deposits 2 Loans Deposits M'11 M'12 Net interest income return Attributable profit Return / Cost Net interest inc. / ATAs % 3.75% 3.04% Return Cost % 1.70% 1.70% 2.39% 2.45% Q1'11 Q4'11 Q1'12 Q1'11 Q1'12 (1) Loan-to-deposit ratio (2) Including retail commercial paper (3) Retail banking

26 Spain 1. Details of loans and deposits 26 Appropriate loans / deposits structure, reflected in a continuous improvement in liquidity ratios March 2012 balances Loan-to-deposit ratio 2 EUR billion TOTAL 215 Public sector Household mortgages Other loans to individuals TOTAL Retail commercial paper Time deposits and REPOs 178% 149% 119% 118% 111% Companies w/o real estate purposes 105 Real estate 22 purpose Gross loans 80 Deposits Demand deposits D'08 D'09 D'10 D'11 M'12 (1) Including Santander Branch Network, Banesto, GBM Spain, Santander Consumer Finance Spain and Banif (2) Including retail commercial paper

27 Spain 1. Customer lending and NPLs 27 In lending, individual customers deleveraging and the fall in loans with real estate purposes continue (-8% / Q4'11). Stable in loans to other companies Gross loans NPL ratio EUR billion % TOTAL Public sector Household mortgages With real estate purpose Other loans to individuals Companies w/o real estate purposes Real estate purpose M 3M 27-14% 23-8% Total portfolio Spain Other portfolio Household mortgages Dec'10 Dec'11 Mar'12 Dec'10 Dec'11 Mar'12 (1) Including Santander Branch Network, Banesto, GBM Spain, Santander Consumer Finance Spain and Banif

28 Real estate exposure. Loans and foreclosed real estate 28 Active management with focus on reducing loans and foreclosed real estate LOANS with real estate purpose -EUR 16,181 mill.; -43% 37,688 31,127 27,334 23,442 21,507-8% 4,765 Foreclosed REAL ESTATE (gross amount) 6,521 7,509 8,552 8,590 Dec'08 Dec'09 Dec'10 Dec'11 Mar'12 Dec'08 Dec'09 Dec'10 Dec'11 Mar'12 Quarterly evolution in 2011 and , ,935 Quarterly evolution in 2011 and

29 Real estate exposure in Spain. Coverage 29 Coverage is maintained following the effort made at the end of 2011 NPLs Substandard Foreclosed real estate 7,047 Coverage: 33% 2,291 3,852 Coverage: 16% 600 8,590 Coverage: 48% 4,148 Balance Coverage Balance* Coverage Balance Coverage (*) 100% up-to-date with payments

30 Portugal Q1'12 30 Santander Totta, the most solid of the Portuguese banks Activity Already meets the 2012 year-end capital requirement Core Tier I (%) ST -6% Loans Peers Deleveraging process continues % var. Mar 12/Mar 11 +6% Deposits 2.9 ST Data in local criteria. Dec.'11 NPL (%) 6.7 Peers Coverage (%) 82 ST Reduced M/L term maturities M/L term maturities (EUR bn.) Peers Reduction of commercial Gap: -EUR 3.3 bn. equivalent to the maturities of the next 3 years 273 Results Basic revenues -10% +12% Attributable profit

31 Santander Consumer Finance Continental Europe Q1'12 Profit increased underpinned by recurring revenues and excellent risk management. Normalisation over Q4'11 31 Volumes Var. Mar 12 / Mar 11 +5% Activity Net interest income/ Provisions (% / ATAs) 3.54% 3.35% Net interest income Basic revenues +3% +5% % Loans Deposits 1.17% Q1'11 Provisions 0.96% Q1'12 Total portfolio = EUR 59 billion Attributable profit* EUR billion Germany 30 Var. Mar 12 / Mar 11 +1% Italy Nordic countries 7 7-7% +12% 96 Spain Poland % -3% Other 4 0% * Excluding Santander Consumer UK's attributable profit, as it is integrated in Santander UK. Including it, Q1'12: EUR 223 mill.

32 Poland (BZ WBK) Q1'12 Data in local criteria. Constant 32 Loans and deposits growth since its incorporation to the Group Results* showed sharp growth over Q1'11 Loans Basic revenues Expenses Total Companies 8,295 5, % +17% 9,520 6,475 +6% % Individuals 2, % 3,045 Mar'11 Mar'12 Q1'11 Q1'12 Q1'11 Q1'12 Deposits Provisions Attributable profit Total Companies +6% 9,907 10,473 3,775 +2% 3, % % 74 Individuals 6,132 +8% 6,633 Mar'11 Mar'12 Q1'11 Q1'12 Q1'11 Q1'12 (*) 2011 proforma information, as it started to consolidate in Q2'11

33 United Kingdom Q1'12 Results affected by environment of sluggish activity, historically low interest rates and higher funding cost 33 Volumes Balances and Var. Mar 12 / Mar 11 +1% +11% -3% 174 SMEs +21% 30 Mortgages Companies Attributable profit: 255 mill. (EUR 306 mill.) Var. Q1'12 / Q1'11 in 149 Deposits Gross income Expenses Net operating income Activity 1 2 Spreads 2.34% 2.52% Loans Total 2.04% 1.93% -0.30% Q1'11-23% -13% Deposits -0.59% Q1'12 0% Million Million Basic revenues -12% -10% 1,183 1,202 1,175 1,154 1,044 Attributable profit Net op. income after provisions Attributable profit -36% -41% -101 (1) Local criteria. Balances in bn. (2) Excluding GBM and other deposits amounts of 10bn. as of March 2012

34 Brazil Q1'12 Higher basic revenues fuelled by larger volumes and costs decelerating. In profit, impact of larger provisions and minority interests 34 Var. Mar 12 / Mar % Loans Volumes +12% Deposits Activity 1 2 NII / Provisions (o/ ATAs) 7.37% % Q1' % Net interest income 4.65 Provisions 3.67% Q1'12 Attributable profit: US$ 848 mill. (EUR 647 mill.) Var. Q1'12 / Q1'11 in constant US$ Basic revenues +15% Excluding perimeter +15% Basic revenues +15% +4% 5,347 5,536 4,800 4,908 4,984 Constant US$ million Attributable profit Constant US$ million Gross income Expenses Net operating income Net op. income after provisions -3% +14% +8% +17% +14% +8% +18% -2% Net profit Minority interests Attributable profit 1,137 1, ,054 1, Attributable profit -10% -2% (1) Local currency (2) Excluding Repos. Including "letras financeiras"

35 Latin America ex-brazil Q1'12 Profit growth spurred by basic revenues (double digit growth in activity) and costs growing at lower pace. Negative impact from minority interests 35 Activity 1 Basic revenues Volumes 2 Var. Mar 12 / Mar % +12% NII/ Provisions (o/atas) 3.69% % 3.38 Net interest income Constant US$ million +18% 1,949 2,033 2,090 +4% 2,200 2,297 Provisions 0.73% 0.82% Loans Attributable profit: US$ 748 mill. (EUR 571 mill.) Var. Q1'12 / Q1'11 in constant US$ Basic revenues Gross income Expenses Deposits Q1'11 +13% +12% Q1'12 +18% Excluding perimeter +18% +14% +12% Constant US$ million Attributable profit Net operating income +14% +16% Net op. income after provisions Attributable profit +7% +12% +14% +13% (1) Constant currency (2) Excluding New York branch. Deposits excluding Repos

36 Mexico Q1'12 36 Profit growth spurred by basic revenues (double digit growth in activity), costs growing at lower pace and provisions Volumes Var. Mar 12 / Mar % +22% Activity 1 NII/ Provisions (o/atas) 3.91% 3.91% Net interest income Provisions 0.62% 0.64% Constant US$ million Basic revenues +21% +8% Loans Deposits 2 Q1'11 Q1'12 Attributable profit: US$ 388 mill. (EUR 296 mill.) Var. Q1'12 / Q1'11 in constant US$ Basic revenues +21% Excluding perimeter +21% Constant US$ million Attributable profit Gross income Expenses +15% +12% +16% +12% Net operating income +17% +18% Net op. income after provisions +15% +16% Attributable profit +19% +21% (1) Local currency (2) Excluding Repos

37 Chile Q1'12 In activity, focus on profitability and customer deposits. In results, recovery of revenues, larger provisions and minority interests 37 Activity 1 Basic revenues Volumes Var. Mar 12 / Mar 11 +6% +5% NII/ Provisions (o/atas) 3.80% % 4.24% Net interest income 3.01 Provisions 1.23% Constant US$ million +13% % Loans Deposits 2 Q1'11 Q1'12 Attributable profit: US$ 174 mill. (EUR 133 mill.) Var. Q1'12 / Q1'11 in constant US$ Basic revenues Gross income Expenses Net operating income Net op. income after provisions Attributable profit -10% -20% +13% +7% +8% +7% Excluding perimeter +13% +9% +8% +9% -7% -6% Constant US$ million Net profit Minority interests Attributable profit Attributable profit (1) Local currency (2) Excluding Repos

38 United States Q1'12 Santander US includes Sovereign Bank and the contribution from the equity accounted method of SCUSA. Profit of US$ 314 mill. (EUR 240 mill. ) 38 Sovereign Bank Activity 1 Attributable profit - Sovereign Bank Volumes NII/ Provisions (o/atas) US$ million Var. Mar 12 / Mar 11 +7% +5% 3.32% % Net interest income 2, % Loans Deposits Q1'11 Sovereign Bank P&L Var. Q1'12 / Q1'11 in US$ Basic revenues -4% Provisions 0.49% Q1'12 Attributable profit - SCUSA impacted by provisions release in Q1'11 (US$ 77 mill.) and reduced stake at 2011 year-end (-US$ 56 mill. in Q1'12) US$ million Gross income +0% 220 Expenses Net operating income -9% +11% Net op. income after provisions +1% Attributable profit +9% (1) Local currency

39 39

40 Corporate Activities 40 Larger trading gains (losses in valuation of portfolios in Q1'11) and lower provisions, offset the lower tax recovery Attributable profit (Change Q1'12 vs. Q1'11) Main effects: EUR Mill. Net interest income -2 Trading gains +120 Other results and taxes -27 Impact on profit: +91

41 41 Agenda Group performance Q1'12 Highlights Results Business areas performance Q1'12 Conclusions Appendix

42 Santander 2012 outlook 42 In 2012 Santander will maintain a differentiated management by area Mature markets with cyclically high provisions Deleveraging process continues Strengthening balance sheet / liquidity Environment still very demanding on provisions Mature markets with stable provisions UK: Strengthening balance sheet and improving the business mix (companies) USA: The transformation process towards a retail franchise with a full range of products continues SCF: good delivery underpinned by a single pan-european IT platform. Germany, solid profits Emerging markets with sustained growth Latin America: good growth dynamics. Favourable outlook, in the short- and medium- term, which is reflected in profits Poland: integration according to the envisaged plan, aiming to outperform peers

43 43 Agenda Group performance Q1'12 Highlights Results Business areas performance Q1'12 Conclusions Appendix

44 44 Group's balance sheet

45 Main trends of the Group s balance sheet 45 Retail balance sheet, appropriate for the business nature of low risk, liquid and well capitalised EUR billion Balance sheet at March 2012 Cash and credit institutions Derivatives AFS Portfolio Trading portfolio Other* Loans to customers 1,283 1, Credit institutions Assets Derivatives Other Customer Deposits** Issues and subordinated liabilities Shareholders equity & fixed liabilities Liabilities Lending: 58% of balance sheet Cash, Central Banks and credit institutions: 15% Derivatives (with counterpart on the liabilities side): 8% of balance sheet Available for sale portfolio (AFS): 7% Trading portfolio: 4% Other (goodwill, fixed assets, accruals): 8% (*) Other assets: Goodwill EUR 25 bn., tangible and intangible assets 17 bn., other capital instruments at fair value 1 bn., accruals and other accounts 54 bn. (**) Including retail commercial paper

46 46 Secondary segments results

47 Retail Banking The positive evolution of basic revenues is not feeding through to profit because of larger provisions and minority interests 47 Activity Basic revenues 1 EUR billion 628 Loans +7% 671 Deposits 2 +6% % +5% 9,086 9,430 9,438 9,443 9,913 Mar'11 Mar'12 Mar'11 Mar'12 Attributable profit: EUR 1,653 million Var. Q1'12 / Q1'11 Basic revenues +9% Attributable profit Gross income Expenses Net operating income +7% +8% +7% 2,187 1,427 1,727 1,570 1,647 Net op. income after provisions Attributable profit -25% -20% (1) Net interest income + fee income + Insurance activity (2) Including retail commercial paper

48 Santander Consumer Finance Total. Q1'12 48 Aggregates the Continental Europe, United Kingdom and USA units ,500 75,564 33,180 1,228 Basic data Countries Million customers Dealers-participants Million euros in loans 2 Top 3 1 in 10 countries Agreements with manufacturers for captive financing Million euros in deposits Million euros in attributable profit for 2011 Total portfolio (Mar. 12): EUR 76 bill. Continental Europe United Kingdom USA 59 Q1'12 attributable profit: EUR 317 mill. Continental Europe United Kingdom USA Note: basic data as of December except business volumes (March 2012) (1) Market share of new car financing loans (2) Gross loan portfolio under management

49 Global Wholesale Banking (GBM) Higher customer revenues (+8% / Q1'11) fuelled by strong corporate business and markets recovery compared to Q4'11 49 TOTAL Trading Equities Investment banking Hedging of interest / exchange rates Corporate banking 1 Gross income 1, Q1'11 +7% -1% +8% -52% +1% +15% 1, Q1'12 Gross income +7% Total Trading Customers 1,322 1,409 1, , , % 1,214 1,125 1, Attributable profit Customer revenues (1) Including Global Transaction Banking and Credits

50 Asset Management and Insurance High contribution to the Group via revenues and profits: 9% of the operating areas total revenues 50 Group total revenues Gross income -1% 1,082 1, Q1'11 Asset Management Q1'12 Insurance Attributable profit -1% % Q1'11 Q1'12 Q1'11 Q1'12

51 51 Main units spreads and NPL ratios

52 Continental Europe. Main units spreads (%) 52 SAN Branch Network Banesto Retail Banking Loans Deposits Total Loans Deposits Total Santander Consumer Lending Portugal Retail Banking Loans Loans Deposits Total

53 Continental Europe. NPL and coverage ratios 53 Banco Santander 1 Banesto 49% 44% 39% 39% 41% 4.68% 5.08% 5.63% 5.99% 6.33% 52% 52% 53% 53% 51% 4.31% 4.54% 4.69% 5.01% 5.07% Mar'11 Jun Sep Dec Mar'12 Mar'11 Jun Sep Dec Mar'12 NPL Coverage NPL Coverage Santander Consumer Portugal 98% 103% 105% 109% 108% 62% 62% 53% 55% 58% 4.99% 4.74% 4.50% 3.97% 4.05% 3.03% 3.25% 3.78% 4.06% 4.59% Mar'11 Jun Sep Dec Mar'12 Mar'11 Jun Sep Dec Mar'12 NPL Coverage NPL Coverage (1) Santander Branch Network's NPL ratio was 8.90% and coverage ratio 40% as of Mar'12

54 Loans with real estate purpose and foreclosed real estate in Spain 54 LOANS with real estate purpose EUR Million EUR Million Foreclosed REAL ESTATE Mar 12 Dec 11 Var. Gross amount Coverage Net amount Finished buildings 9,511 10, Buildings under constr. 1,555 1, Developed land 4,047 3, Building and other land 2,321 2, Non mortgage guarantee 4,073 4, Total 21,507 23,442-1,935 Finished buildings 3,659 34% 2,408 Buildings under constr % 307 Developed land 2,656 60% 1,062 Building land 1,395 60% 558 Other land % 107 Sub Total 8,590 48% 4,442

55 United Kingdom. Spreads and NPL ratios (%) 55 Spreads Retail Banking NPL and coverage % 43% 42% 40% 40% % 1.81% 1.86% 1.84% 1.82% Mar'11 Jun Sep Dec Mar'12 Loans Deposits Total NPL Coverage

56 Spreads main countries Latin America (%) Retail Banking Brazil Retail Banking Mexico Loans Deposits Total Loans Deposits Total Retail Banking Chile Loans Deposits Total

57 Latin America. NPLs and coverage ratios 57 Brazil Mexico 1 104% 102% 100% 95% 90% 234% 165% 176% 176% 195% 4.85% 5.05% 5.05% 5.38% 5.76% 1.58% 2.45% 1.78% 1.82% 1.61% Mar'11 Jun Sep Dec Mar'12 Mar'11 Jun Sep Dec Mar'12 Coverage NPL Coverage NPL Chile 89% 89% 88% 73% 68% 3.80% 3.65% 3.63% 3.85% 4.52% Mar'11 Jun Sep Dec Mar'12 Coverage NPL (1) GE included since June 2011

58 Sovereign. Spreads and NPL and coverage ratios (%) 58 Spreads Retail Banking NPLs and coverage 107% 93% 96% 82% 85% 4.15% 3.76% 3.22% 2.85% 2.46% Mar'11 Jun Sep Dec Mar'12 Loans Deposits Total NPL Coverage

59 59