January - June

2022

Index

Key consolidated data

3

Business model

5

Group financial information

6

Group performance

6

Income statement and balance sheet

8

Solvency ratios

17

Risk management

18

General background

21

Financial information by segment

22

Primary segments

22

Secondary segments

39

Responsible banking

47

Corporate governance

49

The Santander share

51

Appendix

53

Financial information

54

Alternative performance measures

75

Interim condensed consolidated financial statements

85

Glossary

88

Important information

89

This report was approved by the board of directors on 27 July 2022, following a favourable report from the audit committee. Important information regarding this report can be found on pages 89 and 90.

Key consolidated data

Group financial

Financial information

Responsible banking

Corporate governance

Appendix

Business model

information

by segment

Santander share

Key consolidated data

BALANCE SHEET (EUR million)

Jun-22

Mar-22

%

Jun-22

Jun-21

%

Dec-21

Total assets

1,722,840

1,666,012

3.4

1,722,840

1,568,636

9.8

1,595,835

Loans and advances to customers

1,037,721

1,011,497

2.6

1,037,721

954,518

8.7

972,682

Customer deposits

973,787

957,820

1.7

973,787

894,127

8.9

918,344

Total funds

1,204,407

1,196,544

0.7

1,204,407

1,121,969

7.3

1,153,656

Total equity

97,462

99,378

(1.9)

97,462

95,745

1.8

97,053

Note: Total funds includes customer deposits, mutual funds, pension funds and managed portfolios

INCOME STATEMENT (EUR million)

Q2'22

Q1'22

%

H1'22

H1'21

%

2021

Net interest income

9,554

8,855

7.9

18,409

16,196

13.7

33,370

Total income

12,815

12,305

4.1

25,120

22,695

10.7

46,404

Net operating income

6,915

6,770

2.1

13,685

12,318

11.1

24,989

Profit before tax

3,744

4,171

(10.2)

7,915

6,914

14.5

14,547

Profit attributable to the parent

2,351

2,543

(7.6)

4,894

3,675

33.2

8,124

Changes in constant euros:

Q2'22 / Q1'22: NII: +4.0%; Total income: +0.2%; Net operating income: -2.6%; Profit before tax: -14.4%; Attributable profit: -11.9%

H1'22 / H1'21: NII: +6.9%; Total income: +4.1%; Net operating income: +3.1%; Profit before taxes: +4.4%; Attributable profit: +20.8%

EPS, PROFITABILITY AND EFFICIENCY (%)

Q2'22

Q1'22

%

H1'22

H1'21

%

2021

EPS (euros)

0.131

0.141

(7.2)

0.272

0.197

38.1

0.438

RoE

10.44

11.49

10.98

9.53

9.66

RoTE

13.10

14.21

13.69

11.82

11.96

RoA

0.63

0.71

0.66

0.61

0.62

RoRWA

1.76

1.95

1.86

1.66

1.69

Efficiency ratio

46.0

45.0

45.5

45.7

46.2

UNDERLYING INCOME STATEMENT (1) (EUR million)

Q2'22

Q1'22

%

H1'22

H1'21

%

2021

Net interest income

9,554

8,855

7.9

18,409

16,196

13.7

33,370

Total income

12,815

12,305

4.1

25,120

22,695

10.7

46,404

Net operating income

6,915

6,770

2.1

13,685

12,318

11.1

24,989

Profit before tax

3,744

4,171

(10.2)

7,915

7,628

3.8

15,260

Profit attributable to the parent

2,351

2,543

(7.6)

4,894

4,205

16.4

8,654

Changes in constant euros:

Q2'22 / Q1'22: NII: +4.0%; Total income: +0.2%; Net operating income: -2.6%; Profit before tax: -14.4%; Attributable profit: -11.9%

H1'22 / H1'21: NII: +6.9%; Total income: +4.1%; Net operating income: +3.1%; Profit before tax: -4.8%; Attributable profit: +6.7%

UNDERLYING EPS AND PROFITABILITY (1) (%)

Q2'22

Q1'22

%

H1'22

H1'21

%

2021

Underlying EPS (euros)

0.131

0.141

(7.2)

0.272

0.227

19.5

0.468

Underlying RoE

10.44

11.49

10.98

10.17

10.29

Underlying RoTE

13.10

14.21

13.69

12.62

12.73

Underlying RoA

0.63

0.71

0.66

0.65

0.65

Underlying RoRWA

1.76

1.95

1.86

1.75

1.78

January - June 2022

3

Key consolidated data

Group financial

Financial information

Responsible banking

Corporate governance

Appendix

Business model

information

by segment

Santander share

SOLVENCY (%)

Jun-22

Mar-22

Jun-22

Jun-21

Dec-21

Fully-loaded CET1 ratio

12.05

12.12

12.05

11.70

12.12

Fully-loaded total capital ratio

15.95

16.15

15.95

15.42

16.41

CREDIT QUALITY (%)

Q2'22

Q1'22

H1'22

H1'21

2021

Cost of credit (2)

0.83

0.77

0.83

0.94

0.77

NPL ratio

3.05

3.26

3.05

3.22

3.16

Total coverage ratio

71

69

71

73

71

MARKET CAPITALIZATION AND SHARES

Jun-22

Mar-22

%

Jun-22

Jun-21

%

Dec-21

Shares (millions)

16,794

17,341

(3.2)

16,794

17,341

(3.2)

17,341

Share price (euros)

2.688

3.100

(13.3)

2.688

3.220

(16.5)

2.941

Market capitalization (EUR million)

45,143

53,756

(16.0)

45,143

55,828

(19.1)

50,990

Tangible book value per share (euros)

4.24

4.29

4.24

3.98

4.12

Price / Tangible book value per share (X)

0.63

0.72

0.63

0.81

0.71

CUSTOMERS (thousands)

Q2'22

Q1'22

%

H1'22

H1'21

%

2021

Total customers

156,896

154,762

1.4

156,896

149,497

4.9

152,943

Loyal customers

26,494

25,978

2.0

26,494

24,196

9.5

25,548

Loyal retail customers

24,361

23,799

2.4

24,361

22,076

10.4

23,359

Loyal SME & corporate customers

2,133

2,179

(2.1)

2,133

2,121

0.6

2,189

Digital customers

49,870

49,158

1.4

49,870

45,444

9.7

47,489

Digital sales / Total sales (%)

55

56

56

52

54

OTHER DATA

Jun-22

Mar-22

%

Jun-22

Jun-21

%

Dec-21

Number of shareholders

3,985,638

3,975,210

0.3

3,985,638

3,879,232

2.7

3,936,922

Number of employees

200,651

200,294

0.2

200,651

192,843

4.0

199,177

Number of branches

9,193

9,248

(0.6)

9,193

9,423

(2.4)

9,229

  1. In addition to financial information prepared in accordance with International Financial Reporting Standards (IFRS) and derived from our consolidated financial statements, this report contains certain financial measures that constitute alternative performance measures (APMs) as defined in the Guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority (ESMA) on 5 October 2015, and other non-IFRS measures, including the figures related to "underlying" results, which do not include the items recorded in the separate line of "net capital gains and provisions", above the line of profit attributable to the parent. Further details are provided in the "Alternative performance measures" section of the appendix to this report.

For further details on the APMs and non-IFRS measures used, including its definition or a reconciliation between any applicable management indicators and the financial data presented in the annual consolidated financial statements prepared under IFRS, please see our 2021 Annual Financial Report, published in the CNMV on 25 February 2022, our 20-F report for the year ending 31 December 2021 filed with the SEC in the United States on 1 March 2022, as updated by the Form 6-K filed with the SEC on 8 April 2022 in order to reflect our new organizational and reporting structure, as well as the "Alternative performance measures" section of the appendix to this report.

(2) Allowances for loan-loss provisions over the last 12 months / Average loans and advances to customers over the last 12 months.

4

January - June 2022

Key consolidated data

Group financial

Financial information

Responsible banking

Corporate governance

Appendix

Business model

information

by segments

Santander share

Our business model is based on three pillars

01. Customer focus

02. Our scale

03. Diversification

Deepening the relationships

Local scale and global reach

Geographic and business

with our customers

diversification

Top 3 NPS1

Top 3 in lending2

Balanced profit distribution3

in 6 out of 9 markets

in 10 of our markets

157 mn

total customers

1. NPS - internal benchmark of individual customers' satisfaction audited by Stiga / Deloitte in H1'22.

2. Market share in lending as of March 2022 including only privately-owned banks. UK benchmark refers to the mortgage market. Digital Consumer Bank (DCB) refers to auto in Europe.

3. H1'22 underlying attributable profit by region. Operating areas excluding Corporate Centre.

Our business model remains a source of great strength and resilience

Our corporate culture

The Santander Way remains unchanged to continue to deliver for all our stakeholders

Our purpose

To help people and businesses prosper.

Our aim

To be the best open financial services platform, by acting responsibly and earning the lasting loyalty of our people, customers, shareholders and communities.

Our how

Everything we do should be

Simple, Personal and Fair.

January - June 2022

5

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Banco Santander SA published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 06:27:06 UTC.