Quarterly Shareholders Bulletin January June 2013
Santander share activity Market price in 2013 Euros Opening (02.01.13) 6.329 Maximum 6.678 Minimum 4.791 Closing (28.06.13) 4.902 Market capitalisation (millions) 52,989 Source: Bloomberg. Date: 28.06.13 The Santander share ended the month of June at 4.902, representing a decline of 19.6% in the first half of the year. On 29 July, the share price was 5.451, an increase of 11.2% over the month, better than the main index of the Spanish market, the IBEX 35 (+7.9%), the STOXX Europe 600 Banks (+9.7%) and the STOXX 50 (+3.4%) indexes. International ranking by market capitalisation 29 July 2013 1. WELLS FARGO (USA) 172.9 2. ICBC (CHINA) 168.4 3. JP MORGAN CHASE & CO (USA) 158.3 4. HSBC (UK) 157.1 5. CHINA CONSTRUCTION BANK (CHINA) 138.6 6. CITIGROUP INC (USA) 118.4 7. BANK OF AMERICA (USA) 117.6 8. AGRICULTURAL BANK OF CHINA (CHINA) 97.6 9. BANK OF CHINA (CHINA) 89.3 10. C WEALTH BANK OF AUSTRALIA (AUSTRALIA) 82.6 11. ROYAL BANK OF CANADA (CANADA) 69.2 12. WESTPAC BANKING CORP (AUSTRALIA) 66.4 13. MITSUBISHI UFJ FINANCIAL GROUP (JAPAN) 65.7 14. TORONTO-DOMINION BANK (CANADA) 60.3 15. BNP PARIBAS (FRANCE) 60.0 16. BANCO SANTANDER (SPAIN) 58.9 17. GOLDMAN SACHS (USA) 58.6 18. LLOYDS BANKING GROUP (UK) 56.9 19. AUSTRALIA & NEW ZEALAND B. G. (AUSTRALIA) 56.4 20. UBS (SWITZERLAND) 55.2 Source: Bloomberg. Billion euros
Dividends Remuneration per share 0.60 0.60 0.60 0.60 0.60* 2009 2010 2011 2012 2013 *Projected total remuneration for 2013: 0.60 euros per share Same remuneration as 2009, 2010, 2011 and 2012 Shareholders were able to choose between receiving the amount equivalent to the first interim dividend of 2013 in cash or shares as part of the Santander Scrip Dividend scheme. On 1 August shareholders who opted to sell their rights to the Bank received the cash proceeds. Shareholders who requested shares received their new shares on 9 August. For the second interim dividend payment (October/November 2013), it is again expected that shareholders will be able to choose between receiving an equivalent amount in cash or in new issue Santander shares. Yield per dividend* % Euros Earnings per share 11.28% 10.59% 0.40 7.20% 0.18 0.21 H1 11 H1 12 H1 13 H1 11 H1 12 H1 13 *Last three dividends paid and one announced/average H1 share price. Santander ended the first half of 2013 with a dividend yield of 10.59%. Earnings were 0.21 per share in the first half of 2013. Source: Bloomberg.
Results Santander made a profit of 2.255 billion in the first half of the year, up 29% Santander made an attributable profit of 2.255 billion in the first half of the year, which was a 29% increase on the same period last year and practically the same as the result for the whole of 2012 ( 2.295 billion). Santander s chairman, Emilio Botín, said: Profits rose after more than two years of high levels of write-offs and reinforcement of capital. We are preparing for a new period of profit growth. Income statement (Million euros) H1 13 H1 12 Change (%) Net interest income 13,374 15,385 (13.1) Gross income 20,610 22,409 (8.0) Pre-provision profit (net operating income) 10,614 12,432 (14.6) Profit from continuing operations 2,821 2,162 30.5 Attributable profit for the Group 2,255 1,749 28.9 Distribution of ordinary attributable profit by operating geographic segments* H1 13 BRAZIL Santander s diversification is the main reason why Group results have held up so well against such a difficult backdrop in Europe, where it carries out a large part of its business. MEXICO POLAND SPAIN GERMANY PORTUGAL CHILE OTHER LATIN AMERICA Latin America: 51% Brazil: 25% Mexico: 12% Chile: 6% Other Latin America: 8% Continental Europe: 24% Spain: 8% Germany: 5% Poland: 5% Portugal: 1% Other Europe: 5% UNITED KINGDOM OTHER EUROPE United Kingdom: 13% USA USA: 12% *Excluding written-off real estate in Spain.
Balance sheet Santander closed the first half of the year with total managed funds of 1,342,024 million and a solid core capital of 11.11% according to Basel II The total business managed by Santander was 1,342,024 million, of which 91% ( 1,223,118 million) corresponded to balance sheet assets and the rest to investment funds, pension funds and managed liabilities. Under the international criteria set out by Basel II, Santander s core capital reached 11.11%, increasing by 44 basis points in the quarter and 78 basis points since the end of 2012. Balance sheet (Million euros) Jun 13 Jun 12 Change (%) Total assets 1,223,118 1,292,052 (5.3) Net customer loans 700,149 764,768 (8.4) Customer deposits 644,934 644,009 0.1 Customer funds under management 968,565 1,000,165 (3.2) Shareholders equity 83,202 80,696 3.1 Total managed funds 1,342,024 1,417,236 (5.3) Core Capital (Basel II) % 10.10 11.11 Jun 12 Jun 13 Rating agencies Long term Short term Perspective Standard & Poor s BBB A-2 Negative Fitch Ratings BBB+ F2 Negative Moody s Baa2 P-2 Negative DBRS A R1(low) Negative Since October 2011 the rating agencies have lowered Spain s sovereign rating, which has led to decreases in Santander s ratings. This means that, although the agencies acknowledge Santander s financial strength and diversification, the Group s rating is no more than one step above Spain s sovereign debt rating, due to the methodology used by the rating agencies. In this scenario, Santander is the only bank in Spain to maintain a rating higher than that of Spanish sovereign debt from the four main agencies. It is also the only bank in the world rated above sovereign debt by Standard & Poor s, and the only one from the 20 biggest banks in the world that is rated above sovereign debt by Moody s.
Summary of shareholder and capital position Shareholder numbers Capital stock ownership 3,275,132 3,292,650 Institutional investors 49.79% The board of directors 1.80% Jun 12 Jun 13 Individuals 48.41% Shareholders and trading data Shareholders (number) 3,292,650 Shares outstanding (number) 10,809,600,581 Average daily turnover (number of shares) 83,789,924 Share liquidity (%) (Number of shares traded during the year/number of shares) 99 Geographical distribution of shares America 11.78% Europe 87.84% Rest of the world 0.38% Distribution of capital by tranches Share range Shareholders Shares % Share capital 1 200 1,766,523 158,521,497 1.47% 201 1,000 798,168 396,360,506 3.67% 1,001 3,000 384,674 654,191,697 6.05% 3,001 30,000 320,427 2,379,366,795 22.01% 30,001 400,000 22,096 1,499,390,457 13.87% More than 400,000 762 5,721,769,629 52.93% Total 3,292,650 10,809,600,581 100.00%
News Santander voted Sustainable global bank of the year by the Financial Times and IFC, a member of the World Bank. This award is widely seen as the international benchmark for socially responsible investment and banking. Santander reaches an agreement with Warburg Pincus and General Atlantic to grow its global asset management business. The deal will generate a net capital gain for the Santander Group of 700 million. Another milestone in Santander s growth in China. The Bank will invest 38 million to purchase a 20% share in Bank of Beijing Consumer Finance, becoming its second largest shareholder. Pelé renewed as Santander s brand ambassador until the 2016 Olympic Games. Santander celebrates Breakthrough with Members of Parliament. In May, Ana Botín hosted a reception at the House of Commons to celebrate the success of the Santander Breakthrough programme for small and medium-sized businesses. Santander UK named Best National Branch Network 2012 according to Your Money, one of the UK 's leading personal finance guides. The award recognises the best overall customer experience through a branch network. September 13 Shareholder roadshows. The next shareholder roadshow will be held at the Buckinghamshire Golf Club in Denham. Shareholders representing 86.68% of the bank s capital that is held in the UK to receive the amount equivalent to the first 2013 interim dividend in new shares. For more information about Santander and shareholder events, visit www.santander.com/shareholders/uk PRIZE DRAW Register on the I am a shareholder website before 22 November and you could win one of 10 sets of John Lewis Gift Vouchers each worth 100. For terms and conditions, and to register, visit www.iamashareholder.santander.co.uk
Santander Shareholder Relations UK www.santander.com/shareholders/uk Shareholder helpline: 0871 384 2000* From outside the UK dial: +44 121 415 7188 Relación con Accionistas Santander Spain www.santander.com/accionistas/es Shareholder helpline: 902 11 17 11 From outside Spain dial: +34 91 276 92 90 Relaçao com Accionistas Santander Portugal www.santander.com/accionistas/pt Shareholder helpline: 808 20 22 20 From outside Portugal dial: +351 217 807 364 Santander Shareholder Relations US www.santander.com/shareholders/us Shareholder helpline: 617 757 5770 From outside the US dial: +1 617 757 5770 Relación con Accionistas Santander Mexico www.santander.com/accionistas/mx Shareholder helpline: 5249 4455 From outside Mexico dial: +52 55 5249 4455 Relações com Acionistas Santander Brazil www.santander.com.br/acionistas Shareholder helpline: 0800 286 8484 From outside Brazil dial: +55 11 3553 5664 Relación con Accionistas Santander Chile Shareholder helpline: (02) 320 2222 From outside Chile dial: +56 2 320 22 22 Corporate Headquarters: Ciudad Grupo Santander, Av. Cantabria s/n, 28660 Boadilla del Monte, Madrid (Spain) Banco Santander, S.A. Registered office: Paseo de Pereda, 9-12. 39004 SANTANDER R.M. de Santander, Hoja 286, Folio 64, Libro 5º de Sociedades, Inscripción 1ª. C.I.F. A-39000013 *Calls are charged at 8p per minute plus network extras. Lines are open from 8.30 a.m. to 5.30 p.m. Monday to Friday (except UK public holidays).