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Banco Comercial Portugues

Report Publication Announcement Sep 24, 2015

1913_iss_2015-09-24_7ffead45-7e8e-4798-8504-513c2f37cf8b.pdf

Report Publication Announcement

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Closing session

Ana Botín

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, macro-economic, 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 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 our geographical segments and the accounting principles under which their results are presented here may differ from the businesses included in our public subsidiaries in such geographies and the accounting principles applied locally. Accordingly, the results of operations and trends shown for our geographical segments may differ materially from those disclosed locally by such subsidiaries.

In spite of the recent crisis, Santander has delivered profit every year, paid dividends every quarter and reinforced its capital base

Our model is resilient and capable of delivering profitable growth: we are large but simple and our subsidiaries have the advantage of being part of the Group

Helping people and businesses prosper 3

Over the past 12 months we laid the foundations for the Bank we want for the next 10 years

  • Changes on the Board (Group and subsidiaries)
  • Group Governance and Group-Subsidiary Governance
  • New management team in Corporate Centre and Countries1
  • Simplified corporate structure with greater transparency
  • Commercial loyalty strategies
  • Investments in infrastructure, digitalisation and regulatory projects
  • Cultural transformation programme

…whilst we continued to deliver for shareholders: +24% PAT, 46.9% C/I, 11.5% ROTE, 9.83% CET1 in H1 2015

2016-2018: Commercial model transformation: all about execution

Laying the foundations for our transformation

2015 2016 – 2018

Transformation of our commercial model

  • Loyal customers: 18.5MM by 2018
  • Digitalisation: 30MM digital customers by 2018
  • Operational excellence:
  • C/I < 45% by 2018
  • Top 3 in customer satisfaction
  • Organic capital accumulation
  • Simple I Personal I Fair

+ Increasing EPS, reaching double digit growth by 2018 and growing our dividend every year

Transparent performance Group metrics in 2016

Helping people and businesses prosper 6

We will deliver dividend growth from 2016 and achieve double digit EPS growth by 2018

Our capital management…

  • 1 Listing of subsidiaries no longer a priority
  • 2 More visibility of corporate activities
  • 3 Disciplined M&A
  • 4 RWA optimisation

… will deliver

  • Increasing EPS, reaching double digit growth by 2018
  • Organic capital accumulation
  • FL CET1 2018 >11%
  • Growing our dividend:

Our commitments: a growth model, with growing: RWA, TBV and overall with increased profitability

Generating Capital

  • >100b.p. increase in our FLB3 CET1
  • Generation of Tangible Common Equity (TCE) c.€20bn
  • Improving RoTE (c.150b.p.)
  • RoRWA c.+20b.p.

Our 2018 targets

* Except for the US – approaching peers

Key takeaways of our Investor Day

A scale retail and commercial bank operating in 10 markets, well balanced between developed and emerging economies

Foundations laid to:

  • Simplify operations in our 10 core markets
  • Maximise service and efficiency benefits of being part of the Santander Group
  • Capture opportunities in the new era of digital banking, and increase customer loyalty
  • Be at the forefront in meeting regulatory and societal expectations

The best bank for our people and customers in a majority of our 10 markets by 2018, with improved and sustainable risk adjusted financial returns for our shareholders

Our purpose Our aim

To help people

and businesses

prosper

To be the best retail and commercial bank, earning the lasting loyalty of our people, customers, shareholders and communities

A bank that is…

SIMPLE | PERSONAL | FAIR

Thank you

Helping people and businesses prosper 11

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