Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

4Q13 Results Presentation

4Q13 Results Presentation

  • Login to see the comments

  • Be the first to like this

4Q13 Results Presentation

  1. 1. 1 30 January 2014
  2. 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 inDecated 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 unpreDectable 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 2000. 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. The businesses included in each of our geographic segments and the accounting principles under which their results are presented here may differ from the included businesses and local applicable accounting principles of our public subsidiaries in such geographies. Accordingly, the results of operations and trends shown for our geographic segments my differ materially from those of such subsidiaries.
  3. 3. 3 Index ■ Group performance 2013 — Highlights — Results ■ Performance by business area 2013 ■ Outlook ■ Appendix
  4. 4. 4 2013 Highlights STRONGER BALANCE SHEET VOLUMES reflect environment and strategy Loans: -2% Deposits: 0% Mutual funds:+14% Further LIQUIDITY improvement LTD: 109% (-4 p.p. in 2013) Granular and quality LOAN portfolio 2013 effort: 1.5% cost of credit NPL coverage > European banks' average Strong CAPITAL generation Core capital: 11.71% (+138 b.p. in 2013 ) SHARP P&L RECOVERY PROFIT growth due to less need for provisions Attributable profit 2013: EUR 4,370 mn. (+90% / 2012) Improved basic trends in 20131 Stable commercial revenues and lower provisions Note: volumes – year-on-year change excluding exchange rate impact and repos (1) In constant euros
  5. 5. 5 1 Volumes reflect management strategy adapted to different environments Var. Dec’13 / Dec’12 (1) Mature markets +6% Emerging markets2 +14% +14% Grupo Santander +14% +20% +0.1% -6% Loans -2% -3% Deposits Mutual funds Loans Deposits Mutual funds Loans  Mature markets: deleveraging and focusing on cost of liabilities  Emerging markets: higher and balanced growth (1) Year-on-year change excluding exchange rate impact and repos (2) Excluding Kredyt Bank perimeter effect: +8% in loans and +7% in deposits Deposits Mutual funds
  6. 6. 6 2 Liquidity position further improved in the year Liquidity generated by businesses Sharp improvement in LTD ratio Reduction of commercial gap1 Net loan-to-deposit ratio 150% 135% -EUR 30 bn. 117% -EUR 23 bn. 2012 2013 +EUR 149 bn. of liquidity generated in five years (2008-13) (1) Difference net loans/deposits D'08 D'09 117% 113% 109% D'10 D'11 D'12 D'13 Mainly by Spain: 87% Dec’13 (157% Dec’08)
  7. 7. 3 7 High provisions maintained in 2013, allowing balance sheet provisions to continue to increase ... Group provisions* EUR billion 2.38 1.56 1.29 1.29 11.0 11.6 12.2 2009 2010 2011 1.53 18.8 0.99 Cost of credit (%) 11.1 7.1 2008 2012 2013 (*) Loan-loss provisions (before release of generic ones) and real estate in Spain Note: Cost credit = 12 month loan-loss provisions / average lending, calculated in current euros … although we are already on the way to normalising the cost of credit
  8. 8. 8 4 Strong capital generation: +138 b.p. in the year Core capital ratio BIS II +413 b.p. 10.02% 8.61% 11.71% 10.33% 8.80% 7.58% +138 b.p. in the year Dec'08 Dec'09 Dec'10 Core capital BIS III: 10.9% Note: BIS III ratio based on current understanding of the rules Dec'11 Dec'12 Dec'13 CRD IV leverage ratio: 4.9%
  9. 9. 9 5 Strong year-on-year profit growth due to lower provisions Full year attributable profit Quarterly attributable profit EUR million EUR million 4,370 +90% +3% excl. exchange rate 1,205 2,295 1,050 1,055 1,060 423 122 3Q'12 4Q 1Q'13 2Q 3Q 4Q 2012 2013
  10. 10. Grupo Santander results 2013 10 Good quarterly performance (excluding fx impact) with profit growth due to higher commercial revenues and lower provisions 2013 EUR million Var. / 2012 % %* 4Q’13 Var. / 3Q’13 % %* NII + fee income 35,696 -11.2 -5.0 8,658 0.5 1.8 Gross income 39,753 -8.4 -2.2 9,405 -3.4 -2.0 -19,843 -0.7 4.9 -4,985 2.5 3.7 19,909 -15.0 -8.4 4,420 -9.4 -7.6 -10,863 -14.1 -7.8 -2,279 -12.3 -10.8 PBT 7,262 -14.4 -6.7 1,779 0.8 3.0 Attributable profit 4,370 90.5 136.8 1,060 0.4 2.7 Operating expenses Net operating income Loan-loss provisions Note: in 2013: EUR 939 mn. in capital gains and EUR 939 mn. in provisions. In 2012: EUR 1,064 mn. in capital gains and EUR 4,111 mn. in provisions (*) Excluding exchange rate impact
  11. 11. 11 Capital gains and provisions EUR million 669 5,309 496 193 270 210 4,370 939 2013 Ordinary attributable profit Insurance (AEGON) Santander AM 40 4,370 Goodwill 2013 Accounting attributable profit 939 TOTAL Restructuring costs Homogenize Balance portfolios in sheet Spain strengthening (integration)
  12. 12. 12 Exchange rates had a sharp impact on GROSS INCOME. In 4Q’13, basic revenues rose 1.8% over 3Q1 and trading gains declined Group – Gross income 10,359 10,446 Net interest income + Fee income Constant EUR million 9,977 9,875 9,923 10,037 9,995 9,798 10,713 5,317 10,283 10,290 10,320 9,738 5,427 4,630 11,287 11,123 4,564 5,379 5,402 Emerging markets 5,278 5,304 5,247 5,437 9,405 Mature markets 4,462 4,265 4,139 1Q'12 2Q 3Q 4Q EUR million (1) Excluding exchange rate impact 1Q'13 2Q Constant EUR million 3Q 4Q 1Q'12 2Q 3Q 4Q 1Q'13 4,206 4,163 4,207 2Q 3Q 4Q
  13. 13. 13 Group COSTS reflect different performances by unit Group costs 2013/12 change by main unit % 4,701 4,687 4,771 4,756 4,857 4,885 4,958 Costs (1) Inflation (2) 5,142 Spain 1Q'12 2Q 3Q EUR million 4Q 1Q'13 2Q 4,862 3Q Constant EUR million (1) Excluding exchange rate impact (2) Average inflation 4,985 4Q 0.9 1.1 1.4 1.5 2.7 3.9 6.2 9.9 3.8 Chile 5,000 -5.7 Mexico 4,996 0.5 Brazil 4,939 -2.2 UK 5,067 Portugal SCF 4,934 1.4 Poland (excl. perimeter) 5,043 -1.4 5.5 1.8 USA 10.1 1.7 Better than inflation Franchise development Rebranding, regulation…
  14. 14. 14 Grupo Santander credit quality Coverage ratio (%) NPL ratio (%) 70 61 3.98 4.11 4.34 M'12 J'12 S'12 4.54 4.76 D'12 M'13 5.18 (1) J'13 5.43 D'13 71 66 64 64 62 J'13 S'13 D'13 5.64 S'13 72  Upward trend due to Spain, with sharp impact on denominator.  In 4Q’13, 7 out of 10 core countries had stable or declining NPL ratios. (1) Including reclassification of substandard loans in Spain M'12 J'12 S'12 D'12 M'13  High coverage ratio thanks to effort made in recent years.  Above European banks' average.
  15. 15. 15 NPL ratio by unit (%) Brazil 6.86 Net loans to customers Chile 4% Mexico 3% Other LatAm 3% D'12 6.90 M'13 Spain 24% 6.49 J'13 Sharp reduction in NPL ratio in the year 6.12 S'13 5.64 D'13 UK Brazil 10% USA 6% Portugal 4% 2.05 2.03 2.01 1.98 1.98 D'12 M'13 J'13 S'13 Good performance of retail and corporate loans D'13 Poland 2% UK 34% Germany 4% Run-off real estate 1% Other Europe 5% Spain 7.49 5.75 3.84 (1) Including reclassification of substandard loans. 4.12 D'12 M'13 6.40 J'13 (1) S'13 D'13 Higher NPLs due to reduction of loan portfolio, reclassification (June) and companies
  16. 16. 16 Sustained improvement of cost of credit due to general reduction of provisions Provisions Cost of credit (%) EUR million 3,157 2,825 2,782 2,780 3,021 2,794 2,975 2,693 2,402 2.20 2,230 2.38 2.38 2.05 1.91 1,130 1.77 1.53 1.51 3,118 3,401 2,987 1Q'12 2Q 3Q 3,134 2,919 4Q 1Q'13 3,065 2Q 2,600 2,279 3Q Real estate provisions in Spain Net loan-loss provisions Net loan-loss provisions (Constant EUR million) 4Q 1Q'12 2Q 3Q 4Q 1Q'13 2Q 3Q 4Q
  17. 17. 17 Index ■ Group performance 2013 — Highlights — Results ■ Performance by business area 2013 ■ Outlook ■ Appendix
  18. 18. Business areas 2013 18 High diversification by country in profit generation Ordinary attributable profit by country in 2013 Portugal, 2% Poland, 6% Spain, 7% Germany, 6% Other Europe, 5% Brazil, 23% UK, 17% Mexico, 10% USA, 10% Chile, 6% Other LatAm, 8% Percentage over operating areas ordinary attributable profit
  19. 19. Spain 19 Activity Volumes1 P&L Cost of new term deposits EUR million 4Q’13 %3Q’13 2013 %2012 1,656 -6% 7,020 -9% Expenses -906 -5% -3,769 -1% LLPs -575 -9% -2,411 -3% 111 +51% 478 -45% Var. Dec’13 / Dec’12 +29% Gross income 3.05% 2.04% -8% Loans -3% Deposits 1.54% 1.41% 1.36% Mutual funds Attributable profit 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13  Market share gain in customer funds consistent with sharp drop in cost of deposits.  In 4Q, higher NII (+3%). Revenues impacted by trading gains (wholesale business).  Costs reflected the first savings from network integration.  Provisions in line with cost of credit target. (1) Excluding repos
  20. 20. Spain 20 Gross loans Deposits EUR billion EUR billion TOTAL TOTAL 182 170 166 Retail commercial paper 185 53 Other loans to individuals 13 Companies 89 Repos Public sector 51 50 12 Time deposits 91 84 13 84 3 7 Demand deposits Household mortgages Repos LTD Spain: 87% 83 10 17 6 17 7 13 Dec'12 Sep'13 Dec'13  Amortisation of suppliers' plan in 4Q (-EUR 4bn).  Corporate lending reflects deleveraging and greater access to markets.  Initiatives to boost investment: Plan 10.000, EIB and ICO. Dec'13  Greater focus on profitability. In 3Q and 4Q: – outflow of expensive institutional deposits – balances transferred to mutual funds.  Retail funds rose in the year (+EUR 10 bn.).
  21. 21. Spain. NPL ratio and entries 21 NPL entries1 > 90 days NPL and coverage ratios (%) Base 100: 2008 50 50 45 43 44 Companies w/o real estate purpose Coverage ratio 100 NPL ratio 4.12 Mar'13 179 193 78 71 6.40 5.75 Dec'12 170 Mortgages to individuals 7.49 3.84 123 142 100 (2) Jun'13 Sep'13 102 74 83 Dec' 13 Individuals Cards + Consumer loans  NPL ratio impacted by deleveraging and reclassification (June) of substandard operations.  Some worsening in the companies portfolio. (1) Gross NPL entries by date (before recoveries). (2) Including reclassification of substandard transactions. 100 97 53 2008 2009 44 42 35 2010 2011 2012 2013
  22. 22. Portugal 22 Activity P&L EUR million Volumes1 Cost of new term deposits Var. Dec’13 / Dec’12 -1% / 3Q’13 0% / 3Q’13 4Q’13 %3Q’13 Gross income 2.56% -4% Deposits 4Q'12 224 -2% 916 -12% -126 +3% -495 -2% LLPs -11 -81% -192 -51% Attributable profit 37 +17% 114 -6% Expenses 1.84% Loans 1Q'13 2Q'13 3Q'13 1.70% 4Q'13  Market share gain in the year and higher profit (+17%) in the quarter.  Gross income stabilising due to lower deposit costs.  Strict cost control maintained.  Reduction of provisions for the fifth straight quarter. (1) Excluding repos %2012 2.51% 2.27% -5% 2013
  23. 23. Poland 23 Activity P&L Constant EUR million Stock deposit cost Volumes1 4Q’13 %3Q’13 2013 %2012 %2012* Var. Dec’13 / Dec’12 Gross income 326 -7% 1,331 +38% 0% -160 +14% -601 +42% -6% -39 +9% -167 +49% +14% Net profit 96 -30% 447 +31% +4% Attrib. profit 72 -29% 334 +2% Excluding perimeter +1% +73% Loans +1% Expenses 3.19% 3.07% 2.51% 1.81% 1.69% +69% Deposits LLPs 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 (*) Like-for-like perimeter based on local criteria  Increased productivity and greater commercial activity (new products/services) in the new merged bank (unified brand and customers).  Volumes reflect lower deposits cost and growth in mutual funds (+12% / Dec’12).  Profit growth in the year due to higher net interest income, lower costs and good credit quality. (1) Local currency. Excluding repos -
  24. 24. Santander Consumer Finance – Continental Europe Activity P&L EUR million NII – Provisions / ATAs Gross loans: EUR 58 bn. % s/ total Other Poland Italy 5 6 Germany 2.1% 4Q’13 %3Q’13 2.5% 2.4% 2.6% 2.3% Gross income 2013 %2012 15 Nordic countries 4Q'12 1Q'13 3.19% 3.26% 2Q'13 3Q'13 -5% 3,111 -1% -353 +2% -1,391 +1% LLPs 53 759 Expenses 10 Spain 11 24 -105 -34% -565 -25% 209 0% 794 +10% 4Q'13 Attrib. profit* 2013 / 2012 new lending: NII +1% SCF vs. -4% sector1 Prov. 1.08% 0.95% 0.73% 0.87% 0.58% 3.24% 3.28% 3.19%  Market share gain1 in a still weak environment for consumer business.  Profit rose 10% in the year helped by spread management, cost control and good credit quality.  Self-funding: very active in issues, securitisations and structured finance. (1) Based on new car registrations in the footprint. (*) Not including Santander Consumer UK profit, as it is recorded in Santander UK results. If included, 2013 attributable profit: EUR: 895 mn. (+9% y-o-y).
  25. 25. Spain run-off real estate 25 Total balance sheet EUR billion Coverage ratio Net loans Net foreclosures Equity stakes 15.5 12.3 4.2 11.9 11.6 11.4 55% 10.8 49% 3.7 3.7 3.6 3.7 Buildings: 42% 3.6 10.6 7.3 Sep'12 6.8 6.5 6.2 5.7 Dec'12 Mar'13 Jun'13 Sep'13 Dec'13 Land: 63% Loans  Total real estate exposure dropped 12% in the last 12 months.  Coverage ratio around 50%.  2013 attributable profit: -EUR 635 mn. (-EUR 143 mn. in 4Q). Foreclosures
  26. 26. United Kingdom 26 Activity P&L Sterling million Volumes1 Banking NIM 4Q’13 %3Q’13 2013 %2012 1,100 +8% 4,144 +4% Expenses -547 +2% -2,212 +1% LLPs -121 -8% -493 -25% Profit cont. op. 296 +14% 984 +27% Attributable profit 301 +15% 976 +8% Var. Dec’13 / Dec’12 Corporate banking: +13% -4% Loans Gross income C/A: +75% 1.59% 1.71% 1.46% -3% Deposits 1.45% 1.27% 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13  Ongoing programme to transform our UK business, reflected in increased business and results.  Progressive improvement in PAT for successive quarters; FY PAT from cont. operations: +27%.  Net interest income in the quarter highest for last two years; funding costs declining.  Expenses broadly flat and improved cost of credit. (1) Local currency. Excluding repos
  27. 27. United Kingdom 27 Boosting retail customers … 1|2|3 World Customers Million … and corporate Current accounts £ billion Corporate loans Corporate loans / Total loans £ billion 27.9 11% +75% x1.8 2.4 19.6 15.9 12.3 1│2│3 1.3 12% Dec'12 Dec'13 22.1 7% 14.6 +13% n.a. Dec'10 Dec'12 Dec'13 Dec'10 Dec'12 Dec'13  Additional 1.1 million 1|2|3 World customers.  87% primary banking customers with 1|2|3 c/a.  New products & capabilities: affluent (Select), mortgages (Freedom), ... Dec'10 Dec'12 Dec'13 Dec'10  Diversification of the business: double digit growth in loans and en deposits.  New initiatives: online SME banking facility, rollout of cash management tool and international trade finance portal.
  28. 28. United States 28 Activity P&L US$ million Var. Dec’13 / Dec’12 Var. Dec’13 / Dec’12 Large companies: +20% Loans 2013 %2012 670 -1% -457 +5% 31 n.m. 6 n.m. 188 -13% 961 -7%  Santander Bank 121 0% 548 -8% 67 -31% 413 -5% Expenses LLPs -3% Deposits Gross income %3Q’13 Attributable profit +140% Retail: +6% +35% -5% 4Q’13 SCUSA2 Santander Bank1  SCUSA Gross loans 2,863 -14% -1,673 +10% New loans  Santander Bank: focus on building franchise with impact on costs.  Gross income: spread narrowing and decline of earning assets. 4Q stable, with lower funding costs.  Provisions: sharp reduction due to improved credit quality. (1) Local currency. Excluding repos. (2) Excluding contribution from Chrysler agreement: loans +13%; new loans +45%  SCUSA: sharp volume and revenue growth (accelerating due to Chrysler and personal loans).  Profit impacted by up-front provisions policy.  Market recognition of unit's value.
  29. 29. Brazil 29 Activity P&L Constant EUR million NII – Provisions / ATAs Volumes1 Var. Dec’13 / Dec’12 +2% 4.0% +2% / 3Q’13 4Q’13 3.5% 3.5% 3.5% 3.7% / 3Q’13 Gross income 3.352 %3Q’13 2013 %2012 0% 13.565 -6% Expenses +7% +6% 4Q'12 NII Loans Deposits 1Q'13 2Q'13 3Q'13 4Q'13 7.67% 7.29% 7.10% 6.56% 6.59% -1.454 +8% -5.346 +4% LLPs -1.086 -6% -4.894 -9% 333 -14% 1.577 -18% Attrib. profit Prov. 3.71% 3.83% 3.59% 3.11% 2.88%  Good commercial dynamics: loan growth exceed private sector banks, faster growth in deposits.  Higher net interest income + fee income in the quarter (+5%), backed by volumes.  Costs below inflation. Efficiency plan.  In 4Q, further reduction in provisions and improved net spread. (1) Local currency. Excluding repos
  30. 30. Brazil 30 Net Interest Income Credit quality Loan spreads (%) 12.0 12.3 11.8 11.2 11.1 NPL ratio (%) 10.5 9.9 6.51 9.8 6.90 6.49 5.76 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 M'12 J'12 S'12 D'12 M'13 6.12 J'13 S'13 5.64 D'13 LLP and cost of credit Lending portfolio Constant EUR million Var. Dec’13 / Dec’12 +32% 1,514 1,339 1,210 +17% 0% Other 1 individuals 7.4% +4% 6.1% SMEs / Companies Large companies Total Net interest income impacted by change of mix towards lower risk products / segments. Spreads returning to normal (1) Other = Consumer, payrolls, automobile, cards, cheque and personal loans 1,308 1Q'12 1,360 1,297 1,152 +7% Mortgages 6.86 6.79 6.6% 2Q'12 7.5% 6.9% 3Q'12 4Q'12 Net loan-loss provisions 1Q'13 7.1% 2Q'13 6.7% 3Q'13 Cost of credit Further reduction in cost of credit, with provisions at minimum levels 1,086 6.3% 4Q'13
  31. 31. Mexico 31 Activity P&L Constant EUR million Volumes1 NII / ATAs 4Q’13 %3Q’13 Var. Dec’13 / Dec’12 %2012 / 3Q’13 / 3Q’13 4.37% 4.42% 3,040 +8% Expenses -332 +6% -1,236 +10% -227 -12% -801 +72% 205 +23% 936 -12% Attrib. profit2 4.19% 4.08% -2% Net profit +2% 745 LLPs +4% Gross income 2013 157 +24% 713 -29% 3.85% +12% +4% 4Q'12 Loans 1Q'13 2Q'13 3Q'13 4Q'13 Deposits  Strong volumes, market share gains (SMEs, mortgages, insurance and demand deposits).  Gross income rose 8% y-o-y backed by commercial revenues (NII: +3% in 4Q).  Costs rose due to expansion plan (90 branches opened in 2013; +8%).  Year-on-year provisions impacted mainly by homebuilders and methodology change. (1) Local currency. Excluding repos. On a like-for-like perimeter including commercial paper, deposits rose 12% (2) Higher minority interests year-on-year after IPO.
  32. 32. Chile 32 Activity P&L Constant EUR million Volumes1 Return Var. Dec’13 / Dec’12 +3% +2% / 3Q’13 4Q’13 / 3Q’13 3.9% UF rate 3.9% 1.1% %2012 4Q'12 4.4% 4.4% 606 +3% 2,261 +3% -237 -1% -937 +6% -151 -3% -597 +9% 126 +7% 435 -7% Gross income 1.0% 0.1% Loans 2013 Expenses 4.5% +11% +8% %3Q’13 NII SAN 1Q'13 2Q'13 0.9% LLPs 3Q'13 4Q'13 Attrib. profit -0.1% Deposits  Double-digit growth in loans (SMEs, companies and affluent clients) and better deposit mix (demand: +10%).  Higher gross income due to UF portfolios (higher inflation) and lower funding costs.  Lower provisions in the quarter. Stable risk premium. (1) Local currency. Excluding repos.
  33. 33. Other Latin American countries 33 Attributable profit Constant EUR million Argentina Puerto Rico Uruguay Peru 333 263 77 55 2012 2013 2012 53 45 2013 2012 2013  Focus on linkage, transactional business and target segments.  Volumes and profit growing at double-digit rates for the whole region.  Results underpinned by net interest income and fee income. 15 2012 19 2013
  34. 34. Corporate Activities 34 P&L EUR million 2013 2012 Gross income -953 -1,007 Expenses -698 -530 Provisions, tax and minority interests -236 -588 -1,887 -2,125 Ordinary attributable profit  Flat revenues: higher costs due to liquidity buffer, offset by results from exchange rates differences and management of balance sheet structural risks.  Provisions and other: high figures in 2012 due to goodwill in Italy, real estate, and integration costs in Germany.
  35. 35. 35 Index ■ Group performance 2013 — Highlights — Results ■ Performance by business area 2013 ■ Outlook ■ Appendix
  36. 36. In 2013 Santander completed the intense balance sheet strengthening carried out during the crisis TODAY Comfortable LIQUIDITY position Adequate CAPITAL for the business model PROVISIONS more than doubled expected loss Without restrictions to maximise opportunities as the cycle changes 36
  37. 37. 37 The year's results, still reflect the effort of balance sheet strengthening, but show improved basic trends and profit GROUP – OPERATING PROFIT (Net operating income after provisions) BASIC REVENUES quarterly stability in 2013 in emerging and mature markets % / same quarter 2012 Constant euros +7.4% COSTS 6 units below inflation and efficiency improvement plans -3.3% -19.8% Loan-loss PROVISIONS and cost of credit declined, reflecting the end of the balance sheet cycle -16.3% 1Q'13 Current euros 2Q'13 3Q'13 4Q'13 -24.0% -19.1% -14.4% -3.1%
  38. 38. 38 In the coming years we expect a more favourable business environment Stronger economic growth Greater financial stability IMF- 2014 GDP Due to widespread recovery Spain Portugal Germany +0.6% – Eurozone, including Spain and Portugal – UK, USA: leading mature markets – Latam: sound economies +0.8% +1.6% Poland +2.4% UK +2.4% USA Brazil Mexico +2.3% +3.0% +4.5% Chile Argentina 2013 average.: +1.6% Greater stability and better access to markets +2.8% +2.8% Average: +2.4% Progress towards European Banking Union
  39. 39. 39 Moreover, in Santander we have defined plans to improve profitability 1 Better capital allocation Segmentation via profitability / potential 3 2 Commercial transformation Improving profitability Maximize Group's global presence Global use of best practices Increase linkage 4 Efficiency and productivity plan Adapt costs and processes
  40. 40. 40 Ongoing plans to improve profitability Improve capital allocation 1 All businesses and segments are under review Establish priorities according to risk and expected profitability Greater emphasis on profitability by segment INCREASE CAPITAL ALLOCATION Restructure to improve profitability. Then grow Analysis by segment
  41. 41. 41 Ongoing plans to improve profitability Retail model transformation 2 Faster and more effective product approval Successful examples    Card approvals UK insurance SAN Private Bkg. account opening Improve authorisation and pre-classification Involvement of front-middle-back offices More efficient and customer adapted Successful examples Commercial processes Multichanneling  Linkage and satisfaction of 103 million customers Risks  Human Resources US mobile banking and ATMs Poland: weight of non-branch channels Employee-driven business initiatives Incentives more in line with P&L and quality
  42. 42. 42 Ongoing plans to improve profitability Maximize the Group's global presence 3 GLOBAL UNITS EXAMPLES UNDERWAY NEW NEW Retail Banking Division Global Recoveries Division Other Global Businesses SELECT International business (affluent individuals) (SMEs) Corporate Support areas Entidades fomento Otras entidades Embajadas RED LOCAL CONTACTOS Asesores de Empresas Cámaras de Comercio Application of best commercial practices and processes Increase “collaboration revenues” Transform branches with multichannel focus Global focus for Human Resources
  43. 43. 43 Ongoing plans to improve profitability 4 2014-16 efficiency and productivity plan: cost savings EUR 1,500 mn. EUR million 2014-2016 savings by origin 1,100 2014-2016 accumulated savings 1,500 1,500 1,500 1,500 1,250 750 400 Merger Efficiency synergies plan Expected savings 2014 2015 2016
  44. 44. 44 These plans include specific projects and targets by unit The aim is to maximize the Group's potential in a new cycle of increased profit and profitability
  45. 45. 45 Index ■ Group performance 2013 — Highlights — Results ■ Performance by business area 2013 ■ Outlook ■ Appendix
  46. 46. 46 Appendix Group balance sheet Liquidity and funding Secondary segment results NPL, coverage ratios and cost of credit Spreads Quarterly income statements
  47. 47. 47 Group balance sheet
  48. 48. Highlights of the Group balance sheet 48 Retail balance sheet, appropriate for a low risk business model, liquid and well capitalised Balance sheet at December 2013 1 Lending: 60% of balance sheet EUR billion 2 1,116 Cash and credit institutions Derivatives AFS portfolio Trading portfolio 168 67 69 46 97 Other* 1,116 2 3 4 5 6 Credit institutions 110 Derivatives Other 80 31 Customer Deposits Loans to customers 669 611 1 4 5 Issues and subordinated liabilities 188 Shareholders’ equity & fixed liabilities Assets 3 96 Liabilities 6 Cash, central banks and credit institutions: 15% Derivatives (with counterparty on the liabilities side): 6% of balance sheet Available for sale portfolio (AFS): 6% Trading portfolio: 4% Other (goodwill, fixed assets, accruals): 9% (*) Other assets: Goodwill EUR 23 bn., tangible and intangible assets EUR 17 bn., other capital instruments at fair value EUR 1 bn., accruals and other accounts EUR 55 bn.
  49. 49. 49 Liquidity and funding
  50. 50. 50 Liquidity and funding Well-funded balance sheet with high structural liquidity surplus December 2013. EUR billion Santander Group liquidity balance sheet Net loans to customers 611 669 Financial assets Commercial Gap: EUR 57.5 bn. (-EUR 23 bn. / Dec’12) 51 Fixed assets & other Deposits Securitisations 81 133 M/L term funding 165 105 Structural liquidity1 surplus: EUR 150 billion (16% net liabilities) Equity (80) and other (25) ST funding 15 Assets Liabilities Note: Liquidity balance sheet for management purposes (net of trading derivatives and interbank balances). Provisional (1) Financial assets – short term wholesale funding markets
  51. 51. 51 Liquidity and funding The effort made in recent years is reflected in enhanced monitoring metrics Monitoring metrics. Santander Group 2008 2009 2010 2011 2012 Dec’13 79% 79% 75% 77% 74% 73% Net loan-to-deposit ratio (LTD) 150% 135% 117% 117% 113% 109% Customer deposits and medium- to long-term financing over net loans 104% 106% 115% 113% 118% 119% Short term wholesale funding over net liabilities* 7% 5% 3% 2% 2% 2% Structural liquidity surplus (% over net liabilities*) 4% 8% 14% 13% 16% 16% Net loans over net assets* (*) Balance sheet for liquidity management purposes (net of trading derivatives and interbank balances)
  52. 52. 52 Liquidity and funding Adequate liquidity structure of stand-alone units December 2013 Main units and liquidity ratios LTD ratio (net loans / deposits) Spain Deposits + M/L term funding / net loans 87% 158% Portugal 101% 108% Santander Consumer Finance 181% 73% 88% 117% UK 123% 110% Brazil 108% 123% 90% 118% 137% 96% 87% 116% USA 106% 116% Group Total 109% 119% Poland Mexico Chile Argentina
  53. 53. 53 Liquidity and funding Liquidity generation by Group businesses enabled Santander to reduce recourse to wholesale funding December 2013 Issuance (EUR bn.) Total Diversified issuances 2013 43 29 M/L term issuance 31 23 Securitisations1 12 2012 6 2013 (1) Placed in the market and including structured finance US$ area, 27% Sterling area, 25% Euro area, 48%
  54. 54. 54 Secondary segment results
  55. 55. Retail Banking 55 Activity1 P&L EUR billion EUR million Loans Deposits 4Q’13 %3Q’13 -1%* -5%* 534 Gross income 8,301 -1% 2013 %2012 34,790 -9% -2% 527 Costs 599 Dec'12 Dec'13 Dec'12 (*) -1% excluding FX impact -4,264 +3% -16,917 LLPs 631 -2,089 +1% -9,448 -20% 1,140 -13% 5,077 -14% Attrib. profit Dec'13 (*) +2% excluding FX impact Gross income EUR million 9,826  Sharp exchange rate impact in recent quarters. 9,783 9,640 9,077 9,018 9,055 8,415 8,301  Excluding this impact: - Stable net interest income + fee income, +1% increase in 4Q. - Costs below inflation. 1Q'12 2Q (1) Excluding repos 3Q 4Q 1Q'13 2Q 3Q 4Q - Provisions still high.
  56. 56. Santander Consumer Finance Total. 2013 56 Includes Continental Europe, United Kingdom and USA Gross loans (Dec’13): EUR 81 bn. Basic data EUR billion 31 in Top 12 countries 14 Countries 61 Agreements with manufacturers for "captive" financing 14.3 Million customers 155,000 Dealers-participants 80,517 EUR million in loans2 30,878 EUR million in deposits 1,206 EUR million in 2013 attributable profit Continental Europe UK USA 58 5 18 Attributable profit 2013: EUR 1,206 mn. EUR million (1) Market share of new car financing and/or durable goods loans Continental Europe UK USA 794 101 311
  57. 57. Global Wholesale Banking (GBM) 57 Gross income P&L EUR million EUR million TOTAL Trading and capital 5.176 586 -1%* +16% 5.148 4Q’13 %3Q’13 2013 %2012 1,230 -7% 5,148 -1% Costs -421 -3% -1,736 -2% LLPs -161 -66% 393 +60% 679 Gross income Markets Credit Corporate finance 1,798 825 97 Global Transaction Services 1,871 -3% 1,742 +1% -17% 833 80 -3% Customer revenues; -3%* 1,814 2012 Attrib. profit -952 +127% 1,503 -21% 2013 (*) Excluding FX impact: total revenues 2013/2012: +5%; customer revenues +1% TOTAL  Exchange rate impact in recent quarters. 1,538 Trading and capital 1,277 Customers 1,336 1Q'12 1,176 1,184 1,379 1,220 1,229 1,137 1,088 1,029 2Q 3Q 4Q 1,319 1,230 1,043 1Q'13 1,135 1,061 2Q 3Q 4Q  Gross income growth over 2012 in constant euros (+5%).  Sharp drop in provisions in 4Q, after impact in 3Q of Spain and Mexico (homebuilders).
  58. 58. Asset Management and Insurance 58 Total revenues for the Group* P&L EUR million EUR million -3%2 TOTAL 4Q’13 %3Q’13 3,973 3,839 -4% +5% 763 -15% Costs 2,641 189 -85 +7% -318 +4% - - - - 66 -8% 313 -22% LLPs Asset management 1,230 1,198 -3% 2012 %2012 Gross income Insurance 2,743 2013 Attributable profit 2013 (2) At constant perimeter and FX rates: Total +3%; Insurance+4%; Asset Mgmt.+2% TOTAL 1,061 991 942 981 639 665 991 978  Impacted by FX and reduction in perimeter due to strategic agreements. 917 953 613 652 Insurance 751 Asset management 689 702 674  Strategic agreements: to increase potential and value the business. 310 302 303 316 289 304 304 301 1Q'12 2Q 3Q 4Q 1Q'13 2Q 3Q 4Q (*) Including fees paid to the Group retail networks  Large contribution to total revenues (+9% of operating areas total). - Around EUR 2 bn. net capital gains generated for the Group (2011-13).
  59. 59. 59 NPL, coverage ratios and cost of credit
  60. 60. 60 NPL ratios % 31.03.12 30.06.12 30.09.12 31.12.12 31.03.13 30.06.13 30.09.13 31.12.13 5.41 5.67 6.07 6.29 6.62 7.83 8.48 9.13 Spain 3.35 3.26 3.64 3.84 4.12 5.75 6.40 7.49 Portugal 4.59 5.42 6.16 6.56 6.88 7.41 7.86 8.12 Poland 4.74 4.93 4.69 4.72 7.39 8.08 7.75 7.84 Santander Consumer Finance 4.05 3.88 3.96 3.90 3.98 4.04 3.96 4.01 United Kingdom 1.82 1.83 1.94 2.05 2.03 2.01 1.98 1.98 Latin America 4.67 5.14 5.31 5.42 5.44 5.26 5.32 5.03 Brazil 5.76 6.51 6.79 6.86 6.90 6.49 6.12 5.64 Mexico 1.61 1.64 1.69 1.94 1.92 2.20 3.58 3.66 Chile 4.52 4.65 5.00 5.17 5.51 5.81 6.00 5.91 USA 2.46 2.27 2.31 2.29 2.23 2.22 2.26 2.23 Operating Areas 3.95 4.09 4.33 4.53 4.71 5.16 5.42 5.64 Total Group 3.98 4.11 4.34 4.54 4.76 5.18 5.43 5.64 Continental Europe
  61. 61. 61 NPL coverage ratios % 31.03.12 30.06.12 30.09.12 31.12.12 31.03.13 30.06.13 30.09.13 31.12.13 54.1 58.9 68.4 73.0 71.0 63.3 61.1 57.3 Spain 49.4 43.6 45.7 50.0 50.3 43.1 45.0 44.0 Portugal 57.6 53.4 51.7 53.1 52.9 52.4 51.9 50.0 Poland 66.3 62.1 64.0 68.3 67.6 59.3 64.1 61.8 Santander Consumer Finance 108.3 110.7 109.7 109.5 108.7 106.9 109.2 105.3 United Kingdom 37.5 37.5 44.8 44.1 42.1 42.1 41.6 41.6 Latin America 91.6 89.5 89.8 87.5 86.7 85.4 82.9 84.6 Brazil 90.0 90.1 92.0 90.2 90.4 91.3 92.0 95.1 Mexico 194.9 183.4 175.4 157.3 157.1 142.7 99.0 97.5 Chile 68.3 64.0 60.8 57.7 53.9 49.9 49.7 51.1 USA 107.4 113.3 109.7 105.9 102.8 102.8 96.6 93.6 Operating Areas 62.1 64.8 71.3 73.3 71.8 66.3 64.0 61.3 Total Group 61.2 64.3 69.5 72.4 70.9 66.4 63.9 61.7 Continental Europe
  62. 62. 62 Cost of credit % 31.03.12 30.06.12 30.09.12 31.12.12 31.03.13 30.06.13 30.09.13 31.12.13 1.28 2.13 2.77 3.16 3.13 2.33 1.71 1.23 Spain 1.23 1.37 1.34 1.34 1.23 1.26 1.36 1.38 Portugal 1.04 1.23 1.45 1.40 1.18 1.10 0.93 0.73 Poland 0.95 1.05 1.07 1.17 1.22 1.18 1.09 1.01 Santander Consumer Finance 1.41 1.41 1.33 1.27 1.26 1.15 1.13 0.96 United Kingdom 0.28 0.29 0.29 0.30 0.29 0.26 0.26 0.24 Latin America 4.16 4.45 4.56 4.93 4.96 4.77 4.63 4.43 Brazil 6.13 6.61 6.86 7.38 7.46 7.07 6.72 6.34 Mexico 1.87 1.86 1.96 2.23 2.46 2.73 3.27 3.47 Chile 1.59 1.67 1.74 1.90 1.95 2.00 1.96 1.92 USA 1.08 0.86 0.76 0.61 0.51 0.34 0.19 (0.01) Operating Areas 1.49 1.89 2.20 2.42 2.41 2.05 1.73 1.48 Total Group 1.51 1.91 2.20 2.38 2.38 2.05 1.77 1.53 Continental Europe Cost of credit = 12 month loan-loss provisions / average lending
  63. 63. Spain run-off real estate. Exposure and coverage ratios Coverage by borrowers' situation (December 2013) 63 Total coverage (problematic assets + performing loans) provisions / exposure (%) EUR Million 52% Gross risk Coverage Fund Net risk Total real estate exposure Non-performing 8,116 4,602 3,514 Substandard1 2,815 1,018 1,797 Foreclosed real estate 7,990 4,390 3,600 Non-performing 57% Total problematic assets 18,921 10,010 8,911 Substandard1 36% 424 0 424 Foreclosed real estate 55% Total problematic assets 53% 19,345 10,010 9,335 Performing loans2 Real estate exposure (1) 100% up-to-date with payments (2) Performing loans: loans up-to-date with payments Dec'13 Performing loans2 0%
  64. 64. 64 Spain run-off real estate. Loans and foreclosures LOANS with real estate purpose Foreclosed REAL ESTATE EUR Million EUR Million Gross amount Dec’13 Dec’12 4,673 6,218 -1,545  Finished buildings 614 1,289 -675  Buildings under constr. Var. Coverage Net amount 2,343 40% 1,397 733 47% 391  Finished buildings  Buildings under constr.  Developed land 3,124 3,861 -737  Developed land 2,114 60% 840  Building and other land 1,116 1,210 -94  Building land 2,727 65% 945  Non mortgage guarantee 1,828 2,072 -244  Other land 73 63% 27  Total 14,650 -3,295  Total 7,990 55% 3,600 11,355
  65. 65. 65 Spreads
  66. 66. 66 Spreads on loans and deposits % 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 Retail Banking Spain Loan spreads Deposit spreads TOTAL 1.60 1.64 3.24 1.59 1.68 3.27 1.64 1.44 3.08 1.81 0.81 2.62 2.21 0.16 2.37 2.26 0.28 2.54 2.33 0.15 2.48 2.43 0.20 2.63 Retail Banking Portugal Loan spreads Deposit spreads TOTAL 2.34 (0.91) 1.43 2.39 (0.96) 1.43 2.47 (1.13) 1.34 2.47 (1.24) 1.23 2.44 (1.22) 1.22 2.44 (1.18) 1.26 2.44 (1.06) 1.38 2.42 (0.99) 1.43 Retail Banking Poland Loan spreads Deposit spreads TOTAL 3.29 1.27 4.56 3.33 1.26 4.59 3.41 1.16 4.57 3.48 0.96 4.44 2.41 0.73 3.14 2.45 0.72 3.17 2.43 0.73 3.16 2.53 0.98 3.51 Santander Consumer Finance Loan spreads 4.51 4.57 4.67 4.73 4.76 4.83 4.93 4.91 Retail Banking United Kingdom Loan spreads Deposit spreads TOTAL 2.49 (1.02) 1.47 2.54 (1.18) 1.36 2.60 (1.26) 1.34 2.66 (1.27) 1.39 2.78 (1.25) 1.53 2.80 (1.17) 1.63 2.85 (1.00) 1.85 2.84 (0.86) 1.98
  67. 67. 67 Spreads on loans and deposits % 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 Retail Banking Brazil Loan spreads Deposit spreads TOTAL 14.44 0.73 15.17 14.84 0.65 15.49 14.25 0.56 14.81 13.41 0.51 13.92 13.09 0.72 13.81 12.51 0.75 13.26 11.93 0.84 12.77 11.82 0.95 12.77 Retail Banking Mexico Loan spreads Deposit spreads TOTAL 8.20 1.96 10.16 8.35 1.92 10.27 8.33 1.93 10.26 8.49 2.00 10.49 8.46 1.86 10.32 8.41 1.64 10.05 8.34 1.56 9.90 8.23 1.51 9.74 Retail Banking Chile Loan spreads Deposit spreads TOTAL 4.56 2.45 7.01 4.62 2.36 6.98 4.48 2.36 6.84 4.36 2.25 6.61 4.31 2.39 6.70 4.27 2.47 6.74 4.01 2.42 6.43 3.98 2.31 6.29 Retail Banking USA Loan spreads Deposit spreads TOTAL 2.36 0.46 2.82 2.45 0.41 2.86 2.37 0.37 2.74 2.39 0.29 2.68 2.51 0.34 2.85 2.52 0.33 2.85 2.52 0.57 3.09 2.49 0.41 2.90
  68. 68. 68 Quarterly Income Statements
  69. 69. 69 Santander Group EUR million 1Q 12 2Q 13 3Q 13 4Q 13 2012 2013 Gross income 11,287 11,123 10,713 10,283 10,290 10,320 9,738 9,405 43,406 39,753 Operating expenses (5,043) (4,934) (5,067) (4,939) (4,996) (5,000) (4,862) (4,985) Net operating income Net loan-loss provisions 6,244 2Q 12 6,188 3Q 12 5,646 4Q 12 5,344 1Q 13 5,294 5,320 4,876 4,420 (3,118) (3,401) (2,987) (3,134) (2,919) (3,065) (2,600) (2,279) (19,983) (19,843) 23,422 19,909 (12,640) (10,863) Other (570) (478) (556) (697) (372) (542) (510) (361) (2,301) (1,785) Ordinary profit before taxes 2,556 2,309 2,103 1,512 2,003 1,713 1,766 1,779 8,481 7,262 Ordinary consolidated profit 1,853 1,663 1,463 1,257 1,508 1,306 1,302 1,278 6,236 5,393 Ordinary attributable profit 1,627 1,427 1,264 1,024 1,205 1,050 1,055 1,060 5,341 4,370 Attributable profit 1,627 123 122 423 1,205 1,050 1,055 1,060 2,295 4,370
  70. 70. 70 Santander Group Constant EUR million 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 2012 2013 Gross income 10,359 10,446 9,977 9,875 9,923 10,037 9,995 9,798 40,657 39,753 Operating expenses (4,701) (4,687) (4,771) (4,756) (4,857) (4,885) (4,958) (5,142) Net operating income Net loan-loss provisions 5,658 5,759 5,206 5,120 5,066 5,152 5,036 4,655 (2,825) (3,157) (2,782) (3,021) (2,794) (2,975) (2,693) (2,402) (18,915) (19,843) 21,743 19,909 (11,785) (10,863) Other (524) (440) (518) (696) (365) (534) (515) (371) (2,178) (1,785) Ordinary profit before taxes 2,308 2,163 1,906 1,402 1,907 1,644 1,828 1,883 7,779 7,262 Ordinary consolidated profit 1,669 1,554 1,317 1,166 1,435 1,252 1,350 1,357 5,707 5,393 Ordinary attributable profit 1,478 1,337 1,137 944 1,147 1,006 1,094 1,123 4,896 4,370 Attributable profit 1,478 33 (9) 343 1,147 1,006 1,094 1,123 1,845 4,370
  71. 71. 71 Continental Europe EUR million 1Q 12 Gross income Operating expenses Net operating income Net loan-loss provisions Other 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 2012 2013 3,470 3,332 3,147 3,018 3,198 3,188 3,176 3,023 12,967 12,585 (1,618) (1,602) (1,625) (1,613) (1,668) (1,637) (1,630) (1,641) (6,457) (6,576) 1,853 1,730 (1,095) (1,087) 1,522 1,405 1,530 1,551 1,547 1,382 6,510 6,009 (866) (1,056) (901) (993) (946) (763) (4,104) (3,603) (179) (175) (73) (147) (192) (194) (188) (186) (575) (760) Ordinary profit before taxes 579 469 583 202 437 363 413 433 1,832 1,646 Ordinary consolidated profit 436 365 432 181 336 293 321 314 1,413 1,264 Ordinary attributable profit 421 351 419 173 307 250 275 294 1,365 1,127 Attributable profit 421 (1,635) (1,048) (484) 307 250 275 294 (2,745) 1,127
  72. 72. 72 Spain EUR million 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 2012 2013 Gross income 2,043 1,961 1,919 1,758 1,815 1,794 1,755 1,656 7,681 7,020 Operating expenses (969) (954) (963) (937) (962) (951) (950) (906) (3,823) (3,769) Net operating income 1,074 1,008 956 821 853 844 805 750 3,858 3,251 Net loan-loss provisions (724) (670) (466) (613) (516) (690) (630) (575) (2,473) (2,411) Other (55) (46) 7 (34) (36) (29) (59) (12) (128) (136) Profit before taxes 295 291 496 175 301 125 116 162 1,257 704 Consolidated profit 204 202 343 115 208 87 74 110 864 479 Attributable profit 202 201 342 116 207 86 73 111 862 478
  73. 73. 73 Portugal EUR million 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 2012 2013 318 267 258 195 231 233 228 224 1,037 916 (126) (126) (126) (128) (124) (122) (123) (126) (507) (495) 191 141 132 67 107 112 105 97 531 421 (131) (91) (106) (65) (64) (62) (56) (11) (393) (192) (16) (5) 6 4 (13) (17) (6) (42) (11) (78) Profit before taxes 44 45 31 7 31 32 44 44 127 150 Consolidated profit 32 38 26 26 21 25 32 29 122 106 Attributable profit 32 38 26 26 21 25 32 37 122 114 Gross income Operating expenses Net operating income Net loan-loss provisions Other
  74. 74. 74 Poland Constant EUR million 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 2012 2013 220 246 233 265 315 340 350 326 964 1,331 (106) (105) (105) (108) (156) (144) (140) (160) (424) (601) Net operating income 114 140 128 157 159 196 210 166 540 731 Net loan-loss provisions (20) (33) (27) (32) (41) (51) (36) (39) (112) (167) 2 (0) 0 (3) (5) 6 (2) (4) (1) (6) Profit before taxes 96 108 102 122 112 150 172 122 427 557 Consolidated profit 75 88 81 97 90 123 137 96 340 447 Attributable profit 73 85 78 92 70 91 101 72 328 334 Gross income Operating expenses Other
  75. 75. 75 Santander Consumer Finance EUR million 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 2012 2013 810 782 780 770 776 775 801 759 3,141 3,111 (338) (337) (347) (360) (351) (341) (345) (353) (1,381) (1,391) 472 445 433 410 425 434 456 405 1,760 1,720 (176) (199) (174) (204) (171) (131) (158) (105) (753) (565) Other (18) (6) (17) 1 (21) (29) (15) (5) (40) (70) Profit before taxes 278 240 242 207 233 274 283 295 967 1,085 Consolidated profit 216 186 190 167 184 210 217 213 759 824 Attributable profit 206 176 181 162 176 201 208 209 724 794 Gross income Operating expenses Net operating income Net loan-loss provisions
  76. 76. 76 United Kingdom GBP million 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 2012 2013 Gross income 1,088 1,006 936 948 973 1,048 1,022 1,100 3,977 4,144 Operating expenses (552) (558) (546) (524) (560) (567) (538) (547) (2,180) (2,212) 535 448 390 423 413 481 484 553 1,797 1,932 (172) (173) (147) (161) (137) (103) (132) (121) (654) (493) Other (53) (32) (24) (27) (35) (87) (22) (55) (135) (200) Ordinary profit before taxes 311 244 218 236 241 291 330 377 1,008 1,239 Ordinary consolidated profit 243 198 190 207 191 224 261 301 838 976 Ordinary attributable profit 243 198 190 207 191 224 261 301 838 976 Attributable profit 243 198 256 207 191 224 261 301 904 976 Net operating income Net loan-loss provisions
  77. 77. 77 United States USD million 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 2012 2013 869 868 803 805 803 717 674 670 3,345 2,863 (365) (381) (380) (393) (392) (390) (434) (457) (1,519) (1,673) Net operating income 505 487 423 411 411 326 240 213 1,826 1,190 Net loan-loss provisions (93) (101) (65) (81) (36) (6) 17 31 (340) 6 Other (25) (35) (180) 1 (11) (12) (36) (27) (240) (86) Profit before taxes 387 350 178 331 365 308 221 217 1,246 1,110 Consolidated profit 312 275 155 292 307 248 217 188 1,034 961 Attributable profit 312 275 155 292 307 248 217 188 1,034 961 Gross income Operating expenses
  78. 78. 78 Brazil Constant EUR million 1Q 12 Gross income Operating expenses Net operating income Net loan-loss provisions Other 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 2012 2013 3,535 3,743 3,683 3,528 3,504 3,366 3,343 3,352 14,488 13,565 (1,248) (1,243) (1,301) (1,355) (1,262) (1,285) (1,345) (1,454) (5,147) (5,346) 1,898 9,341 8,219 (1,210) (1,514) (1,339) (1,308) (1,360) (1,297) (1,152) (1,086) (5,371) (4,894) 2,287 2,500 2,382 2,173 2,242 2,081 1,998 (181) (215) (213) (102) (72) (125) (131) (171) (711) (500) Profit before taxes 896 771 829 763 810 660 715 641 3,259 2,826 Consolidated profit 666 574 591 605 604 499 506 435 2,437 2,044 Attributable profit 521 442 473 484 461 397 386 333 1,919 1,577
  79. 79. 79 Mexico Constant EUR million 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 2012 2013 680 662 723 743 764 767 764 745 2,808 3,040 (252) (257) (289) (328) (297) (295) (313) (332) (1,126) (1,236) Net operating income 428 405 434 415 467 473 451 413 1,682 1,804 Net loan-loss provisions (78) (103) (127) (157) (140) (177) (257) (227) (465) (801) (2) 30 6 22 25 (2) (3) (3) 55 17 Profit before taxes 348 332 313 280 352 294 191 182 1,272 1,020 Consolidated profit 296 266 266 237 311 252 167 205 1,065 936 Attributable profit 296 265 266 179 238 191 127 157 1,006 713 Gross income Operating expenses Other
  80. 80. 80 Chile Constant EUR million 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 2012 2013 550 554 516 574 526 542 587 606 2,194 2,261 (209) (227) (223) (228) (222) (239) (239) (237) (888) (937) 341 327 293 346 304 303 348 369 1,306 1,324 (122) (117) (158) (148) (147) (142) (157) (151) (545) (597) (4) (10) 13 6 (1) 3 5 (4) 5 4 Profit before taxes 214 200 148 203 156 164 197 214 766 731 Consolidated profit 185 177 127 181 141 135 169 179 670 624 Attributable profit 128 121 91 126 98 94 118 126 466 435 Gross income Operating expenses Net operating income Net loan-loss provisions Other
  81. 81. 81 Corporate Activities EUR million 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 2012 2013 Gross income (326) (184) (280) (218) (328) (141) (168) (316) (1,007) (953) Operating expenses (171) (156) (149) (54) (178) (177) (170) (172) (530) (698) Net operating income (496) (340) (429) (272) (507) (319) (338) (488) (1,537) (1,651) (4) 4 (30) (54) (29) (189) 14 2 (85) (201) (61) 18 (74) (439) (66) (89) (124) 105 (555) (173) Ordinary profit before taxes (562) (318) (533) (765) (602) (596) (447) (380) (2,177) (2,025) Ordinary consolidated profit (559) (381) (565) (639) (547) (523) (424) (386) (2,144) (1,880) Ordinary attributable profit (531) (397) (577) (619) (547) (521) (422) (397) (2,125) (1,887) Attributable profit (531) 285 (333) (563) (547) (521) (422) (397) (1,142) (1,887) Net loan-loss provisions Other

×