Investor Presentation • Sep 23, 2015
Investor Presentation
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Helping people and businesses prosper 0
Country Head Argentina
Banco Santander Río S.A. ("Santander Río") and Banco Santander, S.A. ("Santander") both caution 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 could adversely affect our business and financial performance. Other unknown or unpredictable factors could cause actual results to differ materially from those in the forward-looking 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, share price 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.
Note: The businesses included in each of the geographical segments and the accounting principles under which their results are presented by Grupo Santander may differ from the business included in the public subsidiaries in such geographies and the accounting principles applied locally. Accordingly, the results of operations and trends shown by Grupo Santander for its geographical segments may differ materially from those disclosed locally by such subsidiaries.
The Argentine economy offers medium-to-long-term attractive prospects…
(2nd largest world-wide in gas, 4th largest world-wide in oil)
Largest world-wide in grain exports (6th largest world-wide producer)
Sources: Santander Río estimates, Central Bank and INDEC
3rd
(1) Loans / GDP LATAM average: 38% (Brazil 54% , Chile 78%, Mexico 15% and Colombia 38%) Sources: Santander Río and Central Bank
1st Private Bank in Argentina
9.4% (#1) loans + deposits
7.2% (#2) branches
Best bank (15') Best digital bank (15') Ranks 1
Gross income driven by sight deposits margin and fees 2/3
14.5% BIS
1.2% NPL
| Retail | SMEs and Commercials | Corporates | ||||
|---|---|---|---|---|---|---|
| 2.46MM customers |
199k customers |
1,270 firms |
||||
| Including 750k payroll accounts |
Provide +220k payroll accounts |
Provide +200k payroll accounts |
||||
| L/D ratio = 88% | L/D ratio = 76% | L/D ratio = 73% | ||||
| The leading bank in transactional products and services1 | ||||||
| Retail Customer growth (MM) 2.5 |
SMEs and Corporates Customer growth (k) 199 |
280 Global Groups |
8 85 35
Loyals Loyals
Dec'03 Jun'15
x10.6
x5.7
(1) Includes leadership in debit and credit cards, payroll accounts, insurances, payment and collections, and corporate finance Source: Santander Río and Brain Network Survey
Dec'03 Jun'15
x4.5
x2.5
1.0
To sustain leadership in the financial market…
| 2018 Argentina targets | 1H'15 | 2018 | |
|---|---|---|---|
| Great Place to Work bank ranking | Top 1 | Top 1 | |
| People | Buildings efficiency plan | 7% | 100% |
| New ways of working: survey favourability | 84 | >= 80 | |
| Retail loyal costumers (k) | 922 | 1,060 | |
| SMEs and Commercial loyal customers (k) | 85 | 103 | |
| Digital banking customers (k) | 1,190 | 1,493 | |
| Customers | Customer satisfaction benchmark | n/a | Top 3 |
| Branch network transformation plan | 25% | 100% | |
| Credit growth | 34% | 30% | |
| Fee income CAGR | 35%1 | >25%2 | |
| RoTE | 31% | c.30% | |
| Shareholders | FL CET1 | 10.0% | >11% |
| NPL ratio | 1.5% | <1.7% | |
| C/I ratio | 55.8% | 50% | |
| Number of scholarships 2016-2018 (k) | 6.3 | ||
| Communities | People supported 2016-2018 (k) | 25 |
Note: Group criteria except FL CET1 (1) 1H'14-1H'15 (2) 2015-2018
| Key metric | 1S 2015 | 2016 | Improvement | Comment |
|---|---|---|---|---|
| Total Loyal customers (k) |
1,007 | 1,064 | +6% | • Having reached high loyalty ratios, retail loyal clients will grow as total clients and SMEs above total clients |
| Digital customers (k) |
1,190 | 1,288 | +8% | • High penetration in Online Banking. Focus to grow in mobile |
| SMEs customers with Pack Advance (k) |
77 | 96 | +25% | • 47% of SMEs customers with Pack Advance (transactional products plus credit line) as of December 2016 |
The Argentine economy offers attractive prospects with a solid financial system
Leadership in the financial market: Santander is well prepared to capture the benefits of credit and customer growth
Leverage profitability: investment plan will mature in 2017/18, gains of scale, efficiency driven by productivity improvements
Key goals for 2018: RoTE: c.30%
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