Banco Santander S.A. — Earnings Release 2016

Dec 31, 2016

2016 Earnings Presentation

Ana Botín, Group Executive Chairman José Antonio Álvarez, CEO

Important information

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 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.

Delivery of our 2016 commitments and progress in strategic priorities

Group and business areas review

2017 Strategic priorities

Santander delivered strong financial performance: underlying PBT +12%¹ YoY 2016 results (change vs. 2015)

€4.22 (+15 cents) TNAV/Share Attributable profit €6,204 MM (+4%) Underlying RoTE 11.1% Dividend per share €0.21 (+5%) Loans Funds €798 Bn (+2%¹ ) €796 Bn (+5%¹ ) FL CET1 10.55% (+50 bps) €41,268 MM (+4%¹ ) Customer revenues

Underlying PBT +12%¹ YoY and attributable profit +4% YoY

€ million	2016	2015	ABS.	%	% Constant euros
Net interest income	31,089	32,189	-1,101	-3	+2
Net fees	10,180	10,033	147	+1	+8
Total customer revenues	41,268	42,222	-954	-2	+4
ROF and other	2,585	3,051	-466	-15	-12
Gross Income	43,853	45,272	-1,419	-3	+3
Operating expenses	-21,088	-21,571	-483	-2	+4
Operating Income	22,766	23,702	-936	-4	+2
Net loan loss provisions	-9,518	-10,108	-590	-6	-2
Underlying PBT	11,288	10,939	349	+3	+12
Attributable PAT	6,204	5,966	238	+4	+15

We again delivered on all our 2016 shareholder commitments…

…and continued to reinforce our well-funded and highly liquid balance sheet

A differential business model

Serving 125 MM customers' financial needs, with critical mass in 10 markets with c.1 Bn people drives profitable growth

Geographic diversification drives predictability of earnings = less capital

Subsidiary model with strong culture of working together drives efficiency and service excellence

We are delivering on our unique opportunity… 1

(1) % change (constant euros)

…as we invest in commercial transformation while maintaining best in class c.48% C/I and improving operational excellence 1

(1) Source: Based on public company data – Bloomberg

(2) Source: Corporate Customer Satisfaction Benchmark

Our geographic diversification delivers predictable and growing earnings through the cycle… 2

Well balanced profit generation

% of Group PAT¹

Santander has the lowest volatility in earnings among peers…

Average volatility of quarterly reported EPS (%), 1999-9M'16²

$+7$ <0 +4 +11 +11 +13 +10 +7 +2 +16 +10

(1) Excluding the Corporate Centre and Real Estate activity in Spain

Source: Bloomberg; Note: GAAP criteria

(2) The analysis takes the quarterly EPS to 9M'16, starting from the first available data since Jan'99

…which allows us to consistently fund profitable growth, increase cash dividend per share and accumulate capital 2

(1) Source: Based on public company data - Bloomberg. Santander Underlying. RoTCE for US Banks

(2) Constant euros

Proven track record of shareholders value creation in mature investments 2

ROE higher/equal than the cost of equity		SAN RoE 9M´2016 (%)	Avg. peers2 RoE (%)	Years since first investment
		9	7	159
		17	18	37
		13	4	25
Mature investments		32	31	25
		14	15	24
		13	20	24
		15	10	24
		10	5	12
More recent investments	1	5	6	11
		12	10	6	18% RoE

(1) US RoE 9M2016: Normalising current FL CET1 of 14.12% to 10.5%, otherwise 4%

(2) 9M´2016 local criteria

Delivering regulatory progress in the US whilst progressing in improving SBNA business performance… 2

Significant progress in the regulatory agenda

(1) Profit after tax before minorities; (2) Normalising current FL CET1 of 14.12% to 10.5%, otherwise 3%

3 We add increasing value by working as a Group…

Global projects led by the Group: Santander wallet example

Single global solution for c.400k customers

…supporting our communities…

… with focus on Education and financial inclusion / entrepreneurship

Delivery of our 2016 commitments and progress in strategic priorities

Group and business areas review

2017 Strategic priorities

Santander delivered strong financial performance: underlying PBT +12%¹ YoY 2016 results (change vs. 2015)

Note: Loans and funds excluding repos. (1) Constant euros

Widespread growth, particularly in developing markets

Loan portfolio					Funds
	Spain	151	-4%
Mature	UK	243	+2%		Mature
markets	USA	90	-2%		markets
	SCF	88	+14%1
	Portugal	29	-5%
	Poland	21	+8%
	Brazil	80	+0.4%		Developing markets
Developing markets	Mexico	28	+8%
	Chile	39	+7%
	Argentina	7	+37%

Loan portfolio
Dec'16		€ Billion	YoY var.
	Spain	151	-4%
	UK	243	+2%
Mature markets	USA	90	-2%
	SCF	88	+14%1
	Portugal	29	-5%
	Poland	21	+8%
	Brazil	80	+0.4%
Developing markets	Mexico	28	+8%
	Chile	39	+7%
	Argentina	7	+37%

Growth in demand deposits and mutual funds

Note: Loans excluding repos. Funds: deposits excluding repos + marketed mutual funds. % change in constant euros (1) SCF excluding PSA (+6%)

Attributable profit up 4% (+15% in constant euros) driven by higher customer revenues and lower cost of credit. 4Q'16 profit of €1,598 million¹

2016	2015	% /2015	% /2015 Constant euros
43,853	45,272	-3	+3
-21,088	-21,571	-2	+4
22,766	23,702	-4	+2
-9,518	-10,108	-6	-2
11,288	10,939	+3	+12
-3,396	-3,120	+9	+16
6,621	6,566	+1	+10
-417	-600	-31	-31
6,204	5,966	+4	+15

Higher customer revenues

The efficiency plan enabled transformation and regulatory costs to be absorbed

Lower provisions

Double-digit growth in profit

(1) Includes Deposit Guarantee Fund, mainly in Spain

(2) Non-recurring items details on the next page

2015 and 2016 profit hit by several non-recurring items

In 4Q'16: PPI (-€137 mill.), SC USA restatement (-€32 mill.) and, for comparison purposes with 2015, SRF contribution of €120 mill. (charged in 2Q) was reallocated from non-recurring items to gross income

Gross income rose in 8 of 10 core units driven by net interest income and good performance of fee income

(*) Other income includes gains on financial transactions, income from equity accounted method, dividends and other operating results. Including in 4Q'15 and 4Q'16 contribution to the DGF and SRF Note: Constant euros

Active cost management enabled the continuous investment in commercial transformation, while remaining as one of the most efficient banks

% change in seven units below inflation rate¹

	Nominal	In real terms2 and excl. perimeter
Brazil	5.7	-3.3
UK	-0.4	-1.2
SCF	8.3	-0.8
Spain	-4.0	-3.8
Mexico	9.3	6.5
Chile	1.5	-2.3
Portugal	19.1	-4.7
USA	5.5	4.2
Argentina	37.4	-0.5
Poland	1.7	2.3
Corporate Centre	-17.7	-17.5
Group	3.5	-1.7

All credit quality ratios improved with cost of credit already achieving the Investor Day goals

Ratios evolution
	D'15	D'16
NPL ratio	4.36%	3.93%
Coverage ratio	73%	74%
Cost of credit	1.25%	1.18%
Cost of credit excl. SC USA	0.90%	0.82%

Consistent progress on reaching our target of fully-loaded CET1 >11% in 2018

Note: on 3 February 2016, the ECB authorised the use of the Alternative Standard Method to calculate the capital requirements on a consolidated level of the operational risk in Banco Santander (Brasil) S.A.

Despite challenging market conditions, PBT rose in 9 of 10 core units (Attributable profit impacted by higher and/or new taxes)

Profit before taxes 2016 Attributable profit 2016

Corporate Centre (underlying): -€1,439 million

Corporate Centre (underlying): -€1,589 million

BRAZIL

	Strategy and highlights
--	-------------------------	--

	2015	2016
Loyal customers (mill.)	3.2	3.7
Digital customers (mill.)	4.4	6.4
Biometrics (million customers)	0.1	6.3
Cost of credit	4.50%	4.89%
Customer satisfaction1 (ranking among the 5 largest banks)	2nd	3rd

	P&L
€ million	4Q'16	%/3Q'16* 2016		%/2015*
NII	2,269	5.3	8,062	1.8
Fee income	887	12.8	2,940	16.9
Gross income	3,187	2.7	11,321	6.8
Operating expenses	-1,305	9.5	-4,475	5.7
LLPs	-953	-2.2	-3,377	7.6
PBT	736	-9.1	2,772	15.9
Attributable profit	510	2.6	1,786	15.0
(*) % change in constant euros

• Enhanced customer loyalty driven by improvement of added value proposals (digital advances, product and partnership innovations)
• NII and fee income growth underscored revenues recurrence
• Increased productivity and efficiency resulted in expenses growing at below the average inflation rate (in 4Q impact of collective agreement)
• Provisions and credit quality under control thanks to prudent risk management

(1) Source: Bacen. Complaints ranking: number of complaints filed by customers; (2) Loans excluding repos. Funds: deposits excluding repos + marketed mutual funds.

UNITED KINGDOM

Strategy and highlights

	2015	2016
Digital customers (mill.)	3.7	4.6
Corporate lending growth vs. market	>5 pp	=
Share of corporates / total loans	13.4%	13.7%
NPL ratio	1.52%	1.41%
Retail customer satisfaction1	62.9%	62.9%

	Activity
	Volumes2	Banking NIM
Var. D'16 / D'15		%, local criteria
0% / 3Q'16	+2% / 3Q'16
	+6%	1.83 1.80 1.78 1.78 1.75
+2%
Loans	Funds	4Q'15 1Q'16 2Q 3Q 4Q

	P&L
£ million	4Q'16	%/3Q'16	2016	%/2015
NII	928	4.5	3,599	0.4
Fee income	205	-6.9	843	6.5
Gross income	1,234	5.2	4,752	2.7
Operating expenses	-594	-0.8	-2,424	-0.4
LLPs	48	—	-48	-38.9
PBT	583	25.4	2,004	7.7
Attributable profit	407	30.9	1,373	-4.0

• Robust business flows in both retail and corporates
• PBT up 8%. Attributable profit impacted by the introduction of the 8% bank corporation surcharge in 2016
• Revenues up: higher lending volumes and lower cost of deposits (1l2l3 World interest rate change) offsetting SVR³ attrition and new asset margins decline
• Digitalisation and product simplification supporting expenses discipline
• Strong credit quality in all loan books, supported by prudent lending criteria

(1) Customer satisfaction as measured by the Financial Research Survey (FRS) run by GfK; (2) Loans excluding repos. Funds: deposits excluding repos + marketed mutual funds (3) SVR: Standard variable rate.

SANTANDER CONSUMER FINANCE

Strategy and highlights

2015	2016
16.8	17.9
5	11
0.77%	0.47%
3.42%	2.68%
	PSA Finance agreement)

	P&L
€ million	4Q'16	%/3Q'16* 2016		%/2015*
NII	867	-1.8	3,391	10.7
Fee income	184	-15.9	862	-1.2
Gross income	1,043	-6.0	4,262	8.5
Operating expenses	-486	3.9	-1,904	8.3
LLPs	-87	-25.7	-387	-27.3
Underlying PBT	418	-14.7	1,803	21.3
Attributable profit (*) % change in constant euros	269	-8.0	1,093	17.9

For comparison purposes with 2015, the SRF contribution in 4Q'16 was reallocated from non-recurring items to gross income

• High diversification and leadership in Europe. Joint-venture with PSA and GE Nordics integration completed as scheduled
• New lending growth in all countries
• Profit up driven by higher revenues and lower LLPs. 4Q impacted by the seasonal lower auto sales
• Best-in-class in efficiency and risk
• Main countries profit: Germany (€347 mill.); Nordic countries (€281 mill.) and Spain (€207 mill)

Note: Excluding Santander Consumer UK profit, recorded in Santander UK results. Including it, 2016 attributable profit: €1,238 mill. (+16% / 2015); 4Q'16: 292 mill. (-10% / 3Q'16). (1) Customers with active contract, excl. SC UK and PSA; (2) Loans excluding repos.

SPAIN

Strategy and highlights

	2015	2016
Digital customers (mill.)	2.4	2.7
Retail fee income (y-o-y % change)	-6%	+6%
Customer satisfaction (position)	Top 3	Top 3
Cost of credit	0.62%	0.37%

	P&L
€ million	4Q'16	%/3Q'16	2016	%/2015
NII	747	2.5	3,077	-10.3
Fee income	451	-1.2	1,781	5.5
Gross income	1,179	-15.7	5,608	-7.8
Operating expenses	-802	-2.7	-3,297	-4.0
LLPs	-85	-39.2	-585	-41.0
Underlying PBT	195	-49.1	1,459	4.8
Attributable profit	237	-12.0	1,022	4.6

For comparison purposes with 2015, the SRF contribution in 4Q'16 was reallocated from non-recurring items to gross income.

• Ongoing 1l2l3 strategy to boost customer loyalty (+32%), commercial productivity (50% of new loans linked to 1I2I3 customers), and high return investments (+230 bps UPLs new loans market share)
• In companies, loyal companies grew 48% and top player in league tables
• Efficiency plan implemented while maintaining commercial activity levels and top 3 position in customer satisfaction
• Profit up backed by fee income growth, expenses control and lower provisions
• Net interest income affected by low interest rates, mortgages repricing and impact of ALCO portfolio sales

(1) Loans excluding repos. Funds: deposits excluding repos + marketed mutual funds

(DETAIL BY UNITS IN THE APPENDIX)

Good performance of other units: increased customer base, volumes and profits

Mexico	€629 mill.; +18%	Focus on commercial transformation: strong growth in volumes, digital customers ■ (+46%) and loyal (+16%) Profit boosted by customer revenues (NII: +14%) and enhanced credit quality ■
Chile	€513 mill.; +16%	Improved customer satisfaction with market share gains in loans and deposits ■ Higher customer revenues, expenses under control and lower cost of credit ■
Portugal	€399 mill.; +33%	Banif's integration has been completed, enabling a more balanced loan portfolio ■ and market share gains in corporates Profit up driven by customer revenues and sharp reduction in the cost of credit ■
US	€395 mill.; -42%	SBNA: showed business progress (core deposits +4%) ■ SC USA: 18% RoTE with lower risk profile and increased compliance ■ Significant progress in the regulatory agenda ■
Argentina	€359 mill.; +52%	Market share gain in loans and deposits. Acquisition of Citibank's retail portfolio in ■ October (Central Bank authorisation expected in March 2017) Profit up due to higher revenues and better cost of credit ■
Poland	€272 mill.; -6% +14% Excl. tax on assets:	Higher volumes and customer revenues. Good management of NII (+11%) and ■ enhanced credit quality Profit impacted by new tax on assets and lower gains on financial transactions ■

CORPORATE CENTRE

Progress on reducing the Corporate Centre's weight in the Group: Headquarters expenses down 18% in 2016

• Lower revenues due to fall in gains on financial transactions (hedging)
• Provisions back to normal levels. They were above average in 2015

P&L
€ million	2016	2015
NII	-739	-627
Gains / Losses on FT	-243	150
Operating expenses	-450	-547
Provisions	-73	-481
Tax and minority interests	149	29
Underlying attrib. profit	-1,439	-1,493
Non-recurring items	-417	-600
Attributable profit	-1,856	-2,093
Spain	-216
C.C.	-186
US UK	-32 -30
Poland	+29
Rest	+18

Delivery of our 2016 commitments and progress in strategic priorities

Group and business areas review

2017 Strategic priorities

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

We are delivering on our strategic plan

People and communities: Continuing our progress towards a Simple | Personal | Fair culture and giving back to our communities is a requirement to succeed

Customers: In 2016 we increased customer value and our target is to reach 17MM loyal customers in 2017

Customer loyalty value propositions… ...to further drive fee income growth

Customers: Leveraging technology and active collaboration to deliver best customer experience and efficiency

(1) Geographies within Top 3 customer satisfaction, Source: Corporate Customer Satisfaction Benchmark

Shareholders: We delivered on FL CET1 ahead of plan and reaffirm 2017 guidance

Fully loaded CET1

• Committed to accumulate organically c.40 bps CET1 per year after dividends and lending growth 1
• Loans growth > RWA growth 2

Profit growth > RWA growth

Capital management and M&A discipline across the Group

Shareholders: Reaffirm all our targets for 2017: grow EPS, DPS and TNAV per share

Delivery of our 2016 commitments and progress in strategic priorities

Group and business areas review

2017 Strategic priorities

Concluding remarks

We delivered on all our strategic goals in 2016…

	2015	2016	2016 targets
Loyal customers (million)	13.8	15.2	15.0
Digital customers (million)	16.6	20.9	20.0
Fee income1	4.3%	8.1%	Increase
Cost of risk	1.25%	1.18%	Improve
Cost to income	47.6%	48.1%	Broadly stable
EPS (€)	0.40	0.41	Increase
DPS (€)	0.20	0.21	Increase
TNAV / share (€)	4.07	4.22	Increase
FL CET1	10.05%	10.55%	10.45%

…and we are on track to meet our 2017/18 targets

	2016	2017 targets	2018 targets
Loyal customers (Million)	15.2	17	18.6
Digital customers (Million)	20.9	25	30
Fee income1	8.1%	Increase	c.10% CAGR 15-18
Cost of risk	1.18%	Improve	1.2% avg. 15-18
Cost to income	48.1%	Broadly stable	45-47%
EPS (€)	0.41	Increase	Double digit growth
DPS (€)	0.21	Increase	Increase
FL CET1	10.55%	+40bps per year	>11%

Reaffirming our key shareholder metrics, increasing EPS in 16/17, reaching double digit by 2018, and growing DPS and TNAV per share

The best retail bank in Europe and the Americas

• During ²⁰¹⁶ we have delivered ahead of plan on our 1 strategic, financial and commercial targets

• We reiterate our commitments for 2017 and ²⁰¹⁸ 2

• Consistent delivery over the past 3 years:

• Broadly stable C/I
• Cash DPS +89%
• 11.1% underlying RoTE after FL CET1 +50bps
• Increasing TNAV/Share every year

We have delivered all this in the right way, helping more people and business prosper while building a bank that is more simple, personal and fair

APPENDIX

Other geographic units results

Global segments results

Group balance sheet

Liquidity and funding

NPL and coverage ratios, and cost of credit

Quarterly income statements

Other geographic units results

MEXICO

Strategy and highlights
-------------------------	--	--	--	--	--

	2015	2016
Digital customers (thousand)	876	1,282
Payrolls (thousand)	3,076	3,400
Demand deposits (YoY change)	+18%	+16%
SMEs loans (MXN mill.)	61,203	67,640
Cost of credit	2.91%	2.86%

	P&L
€ million	4Q'16	%/3Q'16* 2016		%/2015*
NII	615	4.9	2,385	14.3
Fee income	179	8.0	711	4.4
Gross income	828	6.0	3,203	13.4
Operating expenses	-325	6.6	-1,274	9.3
LLPs	-203	6.8	-832	11.4
PBT	293	3.9	1,067	17.5
Attributable profit	169	0.4	629	17.5
(*) % change in constant euros

• 46% increase in digital customers and 16% in loyal ones. Efforts made to attract payrolls
• Strong rise in volumes, improving funds structure
• Profit up driven by NII (+14%), fuelled by loans and demand deposits growth and higher interest rates since December 2015
• Ongoing credit quality improvement, with lower NPLs, cost of credit and higher coverage ratio

(1) Loans excluding repos. Funds: deposits excluding repos + marketed mutual funds

CHILE

Strategy and highlights
-------------------------	--	--	--

	2015	2016
Loyal customers (thousand)	559	604
Digital customers (thousand)	918	959
Cost of credit	1.65%	1.43%
NPL ratio Customer satisfaction (position)	5.62% 4th	5.05% 1st

	P&L
€ million	4Q'16	%/3Q'16* 2016		%/2015*
NII	521	7.7	1,864	7.4
Fee income	91	0.1	353	1.2
Gross income	672	6.2	2,422	7.0
Operating expenses	-265	3.9	-986	1.5
LLPs	-131	-13.0	-514	-6.5
PBT	241	2.6	894	20.2
Attributable profit	137	3.2	513	16.4
(*) % change in constant euros

• Improved customer satisfaction indices, greater loyalty and about one million digital customers
• Gaining market share in loans and deposits
• Higher attributable profit driven by net interest income, expenses under control and lower provisions
• Improvement of all credit quality ratios

PORTUGAL

Strategy and highlights

	2015	2016
Loyal individuals (thousand)	505	603
Loyal companies (thousand)	23.0	33.2
Digital customers (thousand)	381	502
Cost of credit	0.29%	0.18%
Loans market-share	14.3%	14.4%(O'16)

	P&L
€ million	4Q'16	%/3Q'16	2016	%/2015
NII	182	1.0	733	32.0
Fee income	69	-13.6	314	19.1
Gross income	292	1.8	1,209	19.0
Operating expenses	-143	0.9	-589	19.1
LLPs	-9	-40.3	-54	-25.4
Underlying PBT	134	8.3	533	27.2
Attributable profit	106	14.8	399	33.0

For comparison purposes with 2015, the SRF contribution in 4Q'16 was reallocated from non-recurring items to gross income.

• Banif's integration has been completed, enabling a more balanced loan portfolio and higher market share in corporates
• Rise in the 1|2|3 customer base reflected in double digit growth in loyal companies and digital customers
• Deposits up 3%, underscoring the banks good position in the financial system
• Profit rose driven by higher customer revenues and sharp reduction of the cost of credit

Note: 2015 customers do not include Banif

(1) Loans excluding repos. Funds: deposits excluding repos + marketed mutual funds (2) Not including Banif

UNITED STATES

Strategy	and highlights
	2015	2016
Digital customers (thousand)	617	778
C&I loans (\$Bn)	19	17
Core deposits (\$Bn)	43	45
SC servicing portfolio (\$Bn)	15	12
Total cost of credit	3.66%	3.68%

	P&L
US\$ million	4Q'16	%/3Q'16	2016	%/2015
NII	1,561	-3.9	6,545	-3.5
Fee income	276	-7.7	1,219	1.2
Gross income	1,945	-6.7	8,332	-3.6
Operating expenses	-932	6.6	-3,538	5.5
LLPs	-935	7.9	-3,548	3.1
PBT	69	-79.6	1,146	-32.1
Attributable profit	12	-92.6	437	-41.9

• SBNA: Focus on commercial activity
• In SC USA, revenues impacted by the change of mix towards a lower risk profile. Lower originations in 4Q16
• Costs still high due to investments in IT, franchise and regulatory issues
• Higher LLPs in SBNA (Oil & Gas in 1Q16) and SC USA (higher average retained balances)
• Significant progress in regulatory agenda

(1) Loans excluding repos. Funds: deposits excluding repos + marketed mutual funds

ARGENTINA

Strategy and highlights

	2015	2016
Loyal individuals (thousand)	961	1,016
Loyal companies (thousand)	91	102
Digital customers (thousand)	1,258	1,511
Cost of credit	2.15%	1.72%
NPL ratio	1.15%	1.49%

	P&L
€ million	4Q'16	%/3Q'16* 2016		%/2015*
NII	212	16.0	710	28.0
Fee income	129	5.5	474	36.3
Gross income	378	6.6	1,377	42.0
Operating expenses	-193	4.2	-741	37.4
LLPs	-32	17.0	-107	15.5
PBT	146	5.2	503	50.2
Attributable profit	110	10.2	359	51.8
(*) % change in constant euros

• Better environment for banking business. Acquisition of Citibank's retail portfolio in October²
• Growth in loans and deposits driven by the expansion plan and commercial strategy
• Profit fuelled by the increase of all revenue lines
• Expenses flat excluding inflation, offsetting the branch network expansion and transformation projects
• Better cost of credit with low NPL ratio and comfortable coverage (142%)

(1) Loans excluding repos. Funds: deposits excluding repos + marketed mutual funds. (2) Central Bank authorisation expected in March 2017

POLAND

Strategy and highlights

2015	2016
1,885	1,979
60	89
0.87%	0.70%
6.30%	5.42%
9.8%	10.1%(S'16)

	P&L
€ million	4Q'16	%/3Q'16* 2016		%/2015*
NII	222	4.2	834	11.2
Fee income	101	-3.8	400	-1.2
Gross income	329	0.7	1,314	7.4
Operating expenses	-139	-5.8	-579	1.7
LLPs	-35	-17.5	-145	-9.8
PBT	129	-1.1	508	3.6
Attributable profit	63	-7.7	272	-5.6
(*) % change in constant euros

• Benchmark bank in innovation and digital channels
• Market share gain in loans. Volumes growth in companies, mortgages, consumer credit and cards
• Attributable profit up 14% excluding the new tax on assets
• Good management of NII (+11%, backed by larger volumes) and costs
• Significant drop in the NPL ratio and the cost of credit
• Fee income hit by new regulation in bank insurance. Better evolution vs. sector (-6%)

(1) Loans excluding repos. Funds: deposits excluding repos + marketed mutual funds.

OTHER LATIN AMERICAN COUNTRIES

• Focusing on loyalty, transactions and target segments
• Profit driven by customer revenues growth

Global segments results

RETAIL BANKING

• The retail banking model continued to be transformed into an increasingly Simple, Personal and Fair model
• Focused on three main priorities: customer loyalty, digital transformation and operational excellence
• Further development of the multi-channel model, centred on digital channels
• Progress in achieving our targets. 15.2 million loyal customers (+10% from December 2015) and 20.9 million digital customers (+26% from December 2015)

GLOBAL CORPORATE BANKING

• Customer-centred strategy, underpinned by the Division's global capacities and their interconnection with local units
• Benchmark positions in export finance, corporate lending and project finance, among other, in Europe and Latin America
• Attributable profit up 30% (in constant euros), driven by strong and diversified customer revenues (+12%)

REAL ESTATE ACTIVITY SPAIN

	P&L
million
	2016	2015	% 2015
Gross income	39	137	-71.8
Operating expenses	-211	-235	-10.3
Provisions	-288	-511	-43.6
Tax recovery	137	180	-23.6
Attributable profit	-326	-420	-22.3

• Reduction of non-core exposure continued at a pace above 15% (net loans: -29%)
• Coverage ratio already adapted to the requirements of Appendix IX
• Deconsolidation of assets from the Metrovacesa / Merlín merger
• Lower losses due to reduced costs and provision needs

Group Balance sheet

BALANCE SHEET

Retail balance sheet, appropriate for a low risk business model, liquid and well capitalised

(*) Other assets: tangible and intangible assets: €53 bn, held-to-maturity portfolio: €14 bn.; other financial instruments at fair value: €1 bn, accruals and other accounts: €64 bn.

Liquidity and funding

Well-funded balance sheet with high structural liquidity surplus

Note: Liquidity balance sheet for management purposes (net of trading derivatives and interbank balances). Provisional (1) Financial assets – short term wholesale funding markets

LIQUIDITY AND FUNDING

Commercial activity evolution enabled a lower recourse to medium and long- term wholesale funding, without eroding the structural liquidity surplus

NPL, coverage ratios and cost of credit

NPL ratio

%

	31.03.15	30.06.15	30.09.15	31.12.15	31.03.16	30.06.16	30.09.16	31.12.16
Continental Europe	8.52	8.15	7.89	7.27	7.08	6.84	6.43	5.92
Spain	7.25	6.91	6.61	6.53	6.36	6.06	5.82	5.41
Santander Consumer Finance	4.52	4.25	4.15	3.42	3.28	2.95	2.86	2.68
Poland	7.33	7.07	7.14	6.30	5.93	5.84	5.71	5.42
Portugal	8.96	8.80	8.86	7.46	8.55	10.46	9.40	8.81
United Kingdom	1.75	1.61	1.51	1.52	1.49	1.47	1.47	1.41
Latin America	4.64	4.74	4.65	4.96	4.88	4.98	4.94	4.81
Brazil	4.90	5.13	5.30	5.98	5.93	6.11	6.12	5.90
Mexico	3.71	3.81	3.54	3.38	3.06	3.01	2.95	2.76
Chile	5.88	5.73	5.60	5.62	5.45	5.28	5.12	5.05
USA	2.20	2.20	2.20	2.13	2.19	2.24	2.24	2.28
Operating Areas	4.87	4.68	4.52	4.39	4.36	4.32	4.19	3.95
Total Group	4.85	4.64	4.50	4.36	4.33	4.29	4.15	3.93

Coverage ratio

%

	31.03.15	30.06.15	30.09.15	31.12.15	31.03.16	30.06.16	30.09.16	31.12.16
Continental Europe	58.6	58.9	60.4	64.2	65.4	61.3	61.3	60.0
Spain	46.6	46.8	47.8	48.1	50.2	47.6	47.6	48.3
Santander Consumer Finance	103.6	104.9	107.2	109.1	111.9	110.6	110.7	109.1
Poland	61.6	63.5	63.1	64.0	67.0	65.8	68.9	61.0
Portugal	52.4	54.2	56.2	99.0	87.7	61.9	57.8	63.7
United Kingdom	41.2	40.3	39.6	38.2	36.5	36.5	36.0	32.9
Latin America	83.6	84.4	85.4	79.0	79.7	81.4	84.5	87.3
Brazil	95.2	95.9	96.0	83.7	83.7	85.3	89.3	93.1
Mexico	88.4	87.5	93.0	90.6	97.5	102.3	101.9	103.8
Chile	52.0	51.6	52.8	53.9	54.6	55.5	58.1	59.1
USA	211.5	224.2	218.3	225.0	221.1	220.6	216.2	214.4
Operating Areas	68.3	69.4	70.5	72.6	73.3	72.0	72.8	73.5
Total Group	68.9	70.1	71.1	73.1	74.0	72.5	72.7	73.8

Non-performing loans and loan-loss allowances. December 2016

Percentage over Group's total

(*) Excluding SCF UK

Cost of credit

%

	31.03.15	30.06.15	30.09.15	31.12.15	31.03.16	30.06.16	30.09.16	31.12.16
Continental Europe	0.95	0.86	0.77	0.68	0.60	0.51	0.46	0.44
Spain	0.97	0.84	0.71	0.62	0.54	0.45	0.41	0.37
Santander Consumer Finance	0.93	0.91	0.87	0.77	0.64	0.55	0.49	0.47
Poland	1.00	1.00	0.96	0.87	0.82	0.75	0.76	0.70
Portugal	0.45	0.38	0.35	0.29	0.28	0.21	0.17	0.18
United Kingdom	0.11	0.08	0.04	0.03	0.01	0.03	0.05	0.02
Latin America	3.53	3.39	3.33	3.36	3.39	3.41	3.42	3.37
Brazil	4.63	4.45	4.40	4.50	4.63	4.71	4.87	4.89
Mexico	2.92	2.89	2.87	2.91	2.95	2.96	2.86	2.86
Chile	1.74	1.68	1.68	1.65	1.58	1.59	1.55	1.43
USA	3.25	3.39	3.36	3.66	3.85	3.77	3.80	3.68
Operating Areas	1.38	1.33	1.27	1.26	1.24	1.20	1.20	1.19
Total Group	1.38	1.32	1.26	1.25	1.22	1.19	1.19	1.18

Spain Real Estate Activity. Exposure and coverage ratios

Coverage by borrowers' situation (December 2016)
€ million
	Gross risk	Coverage Fund	Net risk
Non-performing	3,841	2,184	1,657
Substandard1	167	11	156
Foreclosed real estate	8,061	4,658	3,403
Total problematic loans	12,069	6,853	5,216
Performing loans2	61	0	61
Real estate exposure 12,130 6,853 5,277

Total coverage (problematic assets + performing loans)
Provisions / exposure (%)	57%
Total real estate exposure
	Dec'16
Non-performing	57%
Substandard1	7%
Foreclosed real estate.	58%
Total problematic loans	57%
Performing loans2	0%

(1) 100% up-to-date with payments

(2) Performing loans: loans up-to-date with payments

Spain Real Estate Activity. Loans and foreclosures

€ million
Finished buildings	2,120	2,735	-615
Buildings under constr.	97	137	-40
Developed land	1,270	1,603	-333
Building and other land	247	699	-452
Non mortgage guarantee	335	785	-450
Total	4,069	5,959	-1,890

LOANS Foreclosed REAL ESTATE (Dec'16)

Dec'16	Dec'15	Var.		Gross amount	Coverage
			Finished buildings	2,178	49%
			Buildings under constr.	839	46%
			Developed land	2,609	60%
			Building and other land	2,435	67%
			Other land	0	--
			Total	8,061	58%

Quarterly income statements

Grupo Santander € million

	1Q 15	2Q 15	3Q 15	4Q 15	1Q 16	2Q 16	3Q 16	4Q 16	2015	2016
NII + Fee income	10,563	10,867	10,457	10,336	10,021	10,119	10,395	10,734	42,222	41,268
Gross income	11,444	11,618	11,316	10,894	10,730	10,929	11,080	11,113	45,272	43,853
Operating expenses	(5,377)	(5,429)	(5,342)	(5,422)	(5,158)	(5,227)	(5,250)	(5,453)	(21,571)	(21,088)
Net operating income	6,067	6,189	5,974	5,472	5,572	5,703	5,831	5,660	23,702	22,766
Net loan-loss provisions	(2,563)	(2,508)	(2,479)	(2,558)	(2,408)	(2,205)	(2,499)	(2,406)	(10,108)	(9,518)
Other	(514)	(683)	(716)	(742)	(433)	(544)	(392)	(591)	(2,654)	(1,960)
Underlying profit before taxes	2,990	2,998	2,778	2,173	2,732	2,954	2,940	2,663	10,939	11,288
Underlying consolidated profit	2,067	2,059	1,991	1,702	1,922	1,984	2,036	1,951	7,819	7,893
Underlying attributable profit	1,717	1,709	1,680	1,460	1,633	1,646	1,695	1,646	6,566	6,621
Net capital gains and provisions*	—	835	—	(1,435)	—	(368)	—	(49)	(600)	(417)
Attributable profit	1,717	2,544	1,680	25	1,633	1,278	1,695	1,598	5,966	6,204

(*) Including: in 2Q15 net result of the reversal of provisions in Brazil

in 4Q15 Banif's badwill, PPI, impairment of intangible assets and other provisions (goodwill and other)

in 2Q16 capital gains from the disposal of the stake in Visa Europe, restructuring costs and contribution to the SRF

In 4Q16 PPI, restatement Santander Consumer USA and the SRF contribution, recorded in 2Q16, was reallocated to gross income

Grupo Santander Constant € million

	1Q 15	2Q 15	3Q 15	4Q 15	1Q 16	2Q 16	3Q 16	4Q 16	2015	2016
NII + Fee income	9,629	9,963	10,073	10,153	10,210	10,196	10,312	10,550	39,817	41,268
Gross income	10,479	10,674	10,914	10,702	10,915	11,013	11,001	10,924	42,768	43,853
Operating expenses	(4,939)	(5,007)	(5,132)	(5,290)	(5,220)	(5,251)	(5,228)	(5,389)	(20,368)	(21,088)
Net operating income	5,540	5,667	5,781	5,412	5,695	5,762	5,773	5,535	22,400	22,766
Net loan-loss provisions	(2,370)	(2,338)	(2,445)	(2,569)	(2,489)	(2,243)	(2,464)	(2,322)	(9,722)	(9,518)
Other	(475)	(643)	(700)	(751)	(450)	(548)	(379)	(582)	(2,569)	(1,960)
Underlying profit before taxes	2,695	2,685	2,636	2,093	2,756	2,971	2,930	2,631	10,109	11,288
Underlying consolidated profit	1,854	1,827	1,875	1,635	1,942	1,994	2,028	1,929	7,190	7,893
Underlying attributable profit	1,525	1,502	1,571	1,394	1,649	1,652	1,690	1,630	5,992	6,621
Net capital gains and provisions*	—	835	—	(1,435)	—	(368)	—	(49)	(600)	(417)
Attributable profit	1,525	2,337	1,571	(41)	1,649	1,284	1,690	1,582	5,392	6,204

(*) Including: in 2Q15 net result of the reversal of provisions in Brazil

in 4Q15 Banif's badwill, PPI, impairment of intangible assets and other provisions (goodwill and other)

in 2Q16 capital gains from the disposal of the stake in Visa Europe, restructuring costs and contribution to the SRF

In 4Q16 PPI, restatement Santander Consumer USA and the SRF contribution, recorded in 2Q16, was reallocated to gross income

Spain € million

	1Q 15	2Q 15	3Q 15	4Q 15	1Q 16	2Q 16	3Q 16	4Q 16	2015	2016
NII + Fee income	1,371	1,296	1,251	1,199	1,243	1,232	1,185	1,198	5,118	4,858
Gross income	1,749	1,522	1,571	1,238	1,543	1,489	1,398	1,179	6,080	5,608
Operating expenses	(855)	(856)	(863)	(860)	(837)	(834)	(824)	(802)	(3,434)	(3,297)
Net operating income	894	666	708	379	706	655	574	377	2,646	2,311
Net loan-loss provisions	(366)	(264)	(205)	(156)	(231)	(129)	(140)	(85)	(992)	(585)
Other	(44)	(71)	(58)	(89)	(37)	(82)	(51)	(97)	(263)	(267)
Underlying profit before taxes	483	331	444	134	438	444	382	195	1,392	1,459
Underlying consolidated profit	345	238	317	99	312	314	274	143	999	1,043
Underlying attributable profit	340	232	311	94	307	308	270	137	977	1,022
Net capital gains and provisions*	—	—	—	—	—	(100)	—	100	—	—
Attributable profit	340	232	311	94	307	208	270	237	977	1,022

Santander Consumer Finance

€ million

	1Q 15	2Q 15	3Q 15	4Q 15	1Q 16	2Q 16	3Q 16	4Q 16	2015	2016
NII + Fee income	949	990	1,011	1,022	1,041	1,061	1,099	1,052	3,973	4,253
Gross income	959	991	1,018	998	1,045	1,068	1,106	1,043	3,965	4,262
Operating expenses	(422)	(442)	(443)	(467)	(483)	(468)	(467)	(486)	(1,774)	(1,904)
Net operating income	537	549	575	530	562	600	639	557	2,192	2,357
Net loan-loss provisions	(168)	(131)	(142)	(97)	(114)	(70)	(116)	(87)	(537)	(387)
Other	(22)	(36)	(44)	(50)	(39)	(41)	(36)	(52)	(152)	(168)
Underlying profit before taxes	348	382	389	383	410	488	487	418	1,502	1,803
Underlying consolidated profit	251	272	281	271	293	336	346	308	1,076	1,282
Underlying attributable profit	220	241	242	236	251	293	291	258	938	1,093
Net capital gains and provisions*	—	—	—	—	—	(11)	—	11	—	—
Attributable profit	220	241	242	236	251	282	291	269	938	1,093

Santander Consumer Finance

Constant € million

	1Q 15	2Q 15	3Q 15	4Q 15	1Q 16	2Q 16	3Q 16	4Q 16	2015	2016
NII + Fee income	937	972	1,005	1,021	1,045	1,062	1,098	1,047	3,935	4,253
Gross income	946	973	1,012	997	1,050	1,069	1,105	1,039	3,928	4,262
Operating expenses	(417)	(435)	(440)	(467)	(485)	(468)	(467)	(485)	(1,758)	(1,904)
Net operating income	530	538	572	530	565	600	639	554	2,170	2,357
Net loan-loss provisions	(165)	(129)	(141)	(97)	(115)	(70)	(116)	(86)	(532)	(387)
Other	(22)	(36)	(44)	(50)	(39)	(41)	(36)	(52)	(152)	(168)
Underlying profit before taxes	343	374	386	383	411	489	487	415	1,486	1,803
Underlying consolidated profit	247	266	279	271	294	336	345	306	1,064	1,282
Underlying attributable profit	216	235	240	236	252	293	291	257	927	1,093
Net capital gains and provisions*	—	—	—	—	—	(11)	—	11	—	—
Attributable profit	216	235	240	236	252	282	291	268	927	1,093

Poland € million

	1Q 15	2Q 15	3Q 15	4Q 15	1Q 16	2Q 16	3Q 16	4Q 16	2015	2016
NII + Fee income	291	301	300	311	292	298	321	323	1,204	1,233
Gross income	340	336	309	292	311	345	330	329	1,276	1,314
Operating expenses	(151)	(153)	(146)	(143)	(145)	(146)	(149)	(139)	(594)	(579)
Net operating income	190	182	162	149	166	199	181	190	683	735
Net loan-loss provisions	(39)	(46)	(39)	(44)	(33)	(34)	(43)	(35)	(167)	(145)
Other	(1)	(2)	3	(4)	(22)	(29)	(6)	(25)	(4)	(83)
Profit before taxes	150	135	125	101	111	136	132	129	511	508
Consolidated profit	122	112	99	77	88	108	100	91	410	387
Attributable profit	89	82	73	57	64	75	69	63	300	272

Poland PLN million

	1Q 15	2Q 15	3Q 15	4Q 15	1Q 16	2Q 16	3Q 16	4Q 16	2015	2016
NII + Fee income	1,220	1,232	1,255	1,327	1,275	1,301	1,391	1,412	5,034	5,379
Gross income	1,427	1,371	1,293	1,247	1,357	1,507	1,430	1,440	5,338	5,733
Operating expenses	(632)	(626)	(614)	(611)	(632)	(638)	(647)	(609)	(2,484)	(2,527)
Net operating income	794	745	679	636	724	869	783	831	2,855	3,207
Net loan-loss provisions	(164)	(187)	(164)	(186)	(144)	(149)	(186)	(153)	(700)	(632)
Other	(3)	(9)	11	(16)	(97)	(126)	(25)	(111)	(17)	(360)
Profit before taxes	627	549	526	435	483	593	573	566	2,137	2,215
Consolidated profit	512	456	416	331	384	471	434	399	1,715	1,688
Attributable profit	372	333	306	245	281	327	300	277	1,256	1,185

Portugal € million

	1Q 15	2Q 15	3Q 15	4Q 15	1Q 16	2Q 16	3Q 16	4Q 16	2015	2016
NII + Fee income	211	208	200	200	273	262	260	251	818	1,047
Gross income	238	234	226	318	337	293	287	292	1,016	1,209
Operating expenses	(123)	(122)	(124)	(125)	(154)	(149)	(142)	(143)	(494)	(589)
Net operating income	115	112	102	193	183	144	145	149	522	620
Net loan-loss provisions	(22)	(21)	(24)	(5)	(22)	(6)	(16)	(9)	(72)	(54)
Other	(21)	(23)	23	(10)	(2)	(21)	(5)	(5)	(31)	(34)
Underlying profit before taxes	72	67	101	178	158	116	124	134	419	533
Underlying consolidated profit	55	49	77	120	122	89	93	98	301	402
Underlying attributable profit	55	49	77	119	121	89	92	97	300	399
Net capital gains and provisions*	—	—	—	—	—	(9)	—	9	—	—
Attributable profit	55	49	77	119	121	80	92	106	300	399

United Kingdom £ million

	1Q 15	2Q 15	3Q 15	4Q 15	1Q 16	2Q 16	3Q 16	4Q 16	2015	2016
NII + Fee income	1,100	1,110	1,092	1,076	1,105	1,096	1,108	1,133	4,377	4,442
Gross income	1,152	1,173	1,150	1,155	1,166	1,180	1,172	1,234	4,630	4,752
Operating expenses	(612)	(608)	(605)	(610)	(611)	(619)	(599)	(594)	(2,435)	(2,424)
Net operating income	540	565	545	545	554	561	573	640	2,195	2,328
Net loan-loss provisions	(56)	(12)	6	(15)	(5)	(53)	(37)	48	(78)	(48)
Other	(41)	(36)	(94)	(85)	(45)	(56)	(71)	(104)	(257)	(277)
Profit before taxes	443	516	457	444	504	452	465	583	1,860	2,004
Consolidated profit	356	401	350	350	356	316	316	414	1,457	1,402
Attributable profit	350	394	343	343	349	307	311	407	1,430	1,373

Brazil € million

	1Q 15	2Q 15	3Q 15	4Q 15	1Q 16	2Q 16	3Q 16	4Q 16	2015	2016
NII + Fee income	2,962	2,869	2,598	2,534	2,365	2,583	2,899	3,155	10,963	11,002
Gross income	3,007	2,981	2,656	2,497	2,381	2,703	3,050	3,187	11,140	11,321
Operating expenses	(1,187)	(1,151)	(1,056)	(1,059)	(947)	(1,046)	(1,177)	(1,305)	(4,452)	(4,475)
Net operating income	1,820	1,830	1,600	1,438	1,434	1,657	1,873	1,882	6,689	6,845
Net loan-loss provisions	(826)	(828)	(813)	(830)	(720)	(753)	(951)	(953)	(3,297)	(3,377)
Other	(209)	(263)	(255)	(151)	(177)	(193)	(134)	(193)	(878)	(696)
Profit before taxes	785	739	533	457	536	711	788	736	2,513	2,772
Consolidated profit	532	509	434	350	399	481	544	575	1,824	1,999
Attributable profit	477	452	385	317	359	429	488	510	1,631	1,786

Brazil R\$ million

	1Q 15	2Q 15	3Q 15	4Q 15	1Q 16	2Q 16	3Q 16	4Q 16	2015	2016
NII + Fee income	9,522	9,736	10,129	10,570	10,161	10,216	10,500	11,271	39,958	42,147
Gross income	9,666	10,109	10,362	10,468	10,227	10,708	11,067	11,364	40,605	43,366
Operating expenses	(3,815)	(3,904)	(4,110)	(4,396)	(4,068)	(4,138)	(4,266)	(4,671)	(16,225)	(17,143)
Net operating income	5,851	6,205	6,251	6,072	6,159	6,570	6,801	6,693	24,379	26,223
Net loan-loss provisions	(2,657)	(2,808)	(3,138)	(3,415)	(3,093)	(2,972)	(3,473)	(3,398)	(12,017)	(12,937)
Other	(672)	(888)	(975)	(667)	(762)	(763)	(457)	(686)	(3,201)	(2,668)
Profit before taxes	2,523	2,509	2,139	1,990	2,304	2,835	2,870	2,609	9,161	10,619
Consolidated profit	1,711	1,726	1,704	1,509	1,716	1,908	1,979	2,055	6,650	7,658
Attributable profit	1,534	1,536	1,514	1,362	1,540	1,704	1,774	1,821	5,946	6,840

Mexico € million

	1Q 15	2Q 15	3Q 15	4Q 15	1Q 16	2Q 16	3Q 16	4Q 16	2015	2016
NII + Fee income	791	834	794	832	767	768	767	794	3,251	3,096
Gross income	819	854	794	850	792	786	796	828	3,317	3,203
Operating expenses	(355)	(353)	(327)	(334)	(322)	(317)	(311)	(325)	(1,370)	(1,274)
Net operating income	463	501	467	516	470	469	486	503	1,947	1,928
Net loan-loss provisions	(211)	(224)	(227)	(215)	(221)	(214)	(194)	(203)	(877)	(832)
Other	8	(2)	1	(10)	(6)	(11)	(5)	(8)	(4)	(30)
Profit before taxes	260	274	241	291	243	244	288	293	1,067	1,067
Consolidated profit	201	213	193	224	187	192	223	217	831	820
Attributable profit	153	160	143	173	143	146	172	169	629	629

Mexico Million pesos

	1Q 15	2Q 15	3Q 15	4Q 15	1Q 16	2Q 16	3Q 16	4Q 16	2015	2016
NII + Fee income	13,300	14,117	14,479	15,219	15,253	15,690	16,028	16,922	57,115	63,893
Gross income	13,769	14,450	14,503	15,547	15,745	16,054	16,647	17,645	58,269	66,093
Operating expenses	(5,973)	(5,978)	(5,978)	(6,131)	(6,402)	(6,479)	(6,497)	(6,922)	(24,060)	(26,300)
Net operating income	7,795	8,472	8,526	9,416	9,343	9,576	10,151	10,723	34,209	39,792
Net loan-loss provisions	(3,545)	(3,791)	(4,131)	(3,939)	(4,399)	(4,364)	(4,062)	(4,337)	(15,406)	(17,162)
Other	130	(36)	17	(174)	(123)	(233)	(98)	(161)	(64)	(615)
Profit before taxes	4,380	4,644	4,412	5,302	4,821	4,979	5,990	6,225	18,739	22,015
Consolidated profit	3,381	3,606	3,530	4,080	3,724	3,919	4,643	4,629	14,597	16,915
Attributable profit	2,574	2,704	2,613	3,155	2,839	2,979	3,577	3,589	11,046	12,983

Chile € million

	1Q 15	2Q 15	3Q 15	4Q 15	1Q 16	2Q 16	3Q 16	4Q 16	2015	2016
NII + Fee income	485	593	554	519	509	534	561	613	2,151	2,216
Gross income	553	633	606	543	556	577	616	672	2,336	2,422
Operating expenses	(238)	(263)	(243)	(260)	(235)	(237)	(249)	(265)	(1,004)	(986)
Net operating income	316	370	364	283	321	339	368	407	1,332	1,435
Net loan-loss provisions	(132)	(126)	(153)	(157)	(109)	(127)	(146)	(131)	(567)	(514)
Other	6	(3)	(4)	4	1	(1)	6	(35)	3	(27)
Profit before taxes	190	241	207	130	213	211	228	241	768	894
Consolidated profit	147	212	182	113	173	181	187	195	655	735
Attributable profit	106	147	125	78	122	126	129	137	455	513

Chile Ch\$ billion

	1Q 15	2Q 15	3Q 15	4Q 15	1Q 16	2Q 16	3Q 16	4Q 16	2015	2016
NII + Fee income	341	406	414	397	393	409	414	441	1,557	1,657
Gross income	389	432	454	416	430	441	455	484	1,691	1,810
Operating expenses	(167)	(180)	(182)	(198)	(182)	(182)	(184)	(191)	(727)	(737)
Net operating income	222	253	272	218	248	260	272	293	964	1,073
Net loan-loss provisions	(92)	(86)	(113)	(119)	(84)	(98)	(108)	(94)	(410)	(384)
Other	4	(2)	(3)	3	1	(0)	5	(26)	2	(20)
Profit before taxes	134	165	155	103	165	162	169	173	556	668
Consolidated profit	104	146	136	89	134	138	138	140	474	550
Attributable profit	74	101	94	61	94	96	95	98	330	384

United States \$ million

	1Q 15	2Q 15	3Q 15	4Q 15	1Q 16	2Q 16	3Q 16	4Q 16	2015	2016
NII + Fee income	1,940	2,011	2,019	2,014	2,018	1,983	1,925	1,838	7,984	7,764
Gross income	2,101	2,210	2,169	2,167	2,168	2,133	2,085	1,945	8,647	8,332
Operating expenses	(783)	(806)	(858)	(907)	(856)	(874)	(875)	(932)	(3,354)	(3,538)
Net operating income	1,318	1,404	1,311	1,260	1,312	1,259	1,210	1,013	5,293	4,794
Net loan-loss provisions	(719)	(834)	(834)	(1,053)	(949)	(797)	(867)	(935)	(3,440)	(3,548)
Other	(21)	(46)	(41)	(56)	(72)	(16)	(3)	(8)	(164)	(99)
Profit before taxes	579	524	436	150	291	446	340	69	1,689	1,146
Consolidated profit	401	350	294	73	177	285	238	54	1,117	754
Attributable profit	289	239	207	17	90	178	157	12	752	437

Corporate Centre € million

	1Q 15	2Q 15	3Q 15	4Q 15	1Q 16	2Q 16	3Q 16	4Q 16	2015	2016
NII + Fee income	(222)	(138)	(139)	(142)	(173)	(192)	(201)	(204)	(641)	(771)
Gross income	(230)	(177)	(56)	(32)	(223)	(244)	(316)	(282)	(495)	(1,066)
Operating expenses	(142)	(150)	(142)	(112)	(126)	(120)	(104)	(99)	(547)	(450)
Net operating income	(372)	(327)	(199)	(144)	(349)	(365)	(421)	(381)	(1,042)	(1,516)
Net loan-loss provisions	(1)	2	(1)	26	1	(5)	5	0	27	2
Other	(98)	(132)	(148)	(130)	(5)	(55)	(59)	44	(507)	(75)
Underlying profit before taxes	(470)	(457)	(348)	(247)	(353)	(424)	(474)	(337)	(1,523)	(1,589)
Underlying consolidated profit	(465)	(489)	(392)	(117)	(317)	(418)	(414)	(298)	(1,464)	(1,448)
Underlying attributable profit	(491)	(489)	(395)	(119)	(311)	(418)	(412)	(299)	(1,493)	(1,439)
Net capital gains and provisions*	—	835	—	(1,435)	—	(248)	—	(169)	(600)	(417)
Attributable profit	(491)	346	(395)	(1,554)	(311)	(666)	(412)	(467)	(2,093)	(1,856)

(*) Including: in 2Q15 net result of the reversal of provisions in Brazil

in 4Q15 Banif's badwill, PPI, impairment of intangible assets and other provisions (goodwill and other)

in 2Q16 capital gains from the disposal of the stake in Visa Europe and restructuring costs

in 4Q16 PPI and restatement SC USA

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