29 July 2020

H1'20 Earnings Presentation

All. Together. Now.

Important information

Non-IFRS and alternative performance measures

In addition to the financial information prepared in accordance with International Financial Reporting Standards ("IFRS") and derived from our financial statements, this presentation 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 (ESMA/2015/1415en) and other non-IFRS measures ("Non-IFRS Measures"). The financial measures contained in this presentation that qualify as APMs and non-IFRS measures have been calculated using the financial information from Santander Group but are not defined or detailed in the applicable financial reporting framework and have neither been audited nor reviewed by our auditors. We use these APMs and non-IFRS measures when planning, monitoring and evaluating our performance. We consider these APMs and non-IFRS measures to be useful metrics for management and investors to facilitate operating performance comparisons from period to period, as these measures exclude items outside the ordinary course performance of our business, which are grouped in the "management adjustment" line and are further detailed in Section 3.2. of the Economic and Financial Review in our Directors' Report included in our Annual Report on Form 20-F for the year ended 31 December 2019. While we believe that these APMs and non-IFRS measures are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant as a substitute of IFRS measures. In addition, other companies, including companies in our industry, may calculate or use such measures differently, which reduces their usefulness as comparative measures. For further details of 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 consolidated financial statements prepared under IFRS, please see the 2019 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on 6 March 2020, as well as the section "Alternative performance measures" of the annex to the Banco Santander, S.A. ("Santander") Q2 2020 Financial Report, published as Inside Information on 29 July 2020. These documents are available on Santander's website (www.santander.com). Underlying measures, which are included in this presentation, are non-IFRS measures.

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 may differ materially from those of such subsidiaries

Forward-looking statements

Santander cautions that this presentation contains statements that constitute "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forwardlooking statements may be identified by words such as "expect", "project", "anticipate", "should", "intend", "probability", "risk", "VaR", "RoRAC", "RoRWA", "TNAV", "target", "goal", "objective", "estimate", "future" and similar expressions. 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 and our shareholder remuneration policy. 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. The following important factors, in addition to those discussed elsewhere in this presentation, could affect our future results and could cause outcomes to differ materially from those anticipated in any forward-looking statement: (1) general economic or industry conditions in areas in which we have significant business activities or investments, including a worsening of the economic environment, increasing in the volatility of the capital markets, inflation or deflation, changes in demographics, consumer spending, investment or saving habits, and the effects of the COVID-19 pandemic in the global economy; (2) exposure to various types of market risks, principally including interest rate risk, foreign exchange rate risk, equity price risk and risks associated with the replacement of benchmark indices; (3) potential losses associated with prepayment of our loan and investment portfolio, declines in the value of collateral securing our loan portfolio, and counterparty risk; (4) political stability in Spain, the UK, other European countries, Latin America and the US; (5) changes in laws, regulations or taxes, including changes in regulatory capital and liquidity requirements, including as a result of the UK exiting the European Union and increased regulation in light of the global financial crisis; (6) our ability to integrate successfully our acquisitions and the challenges inherent in diverting management's focus and resources from other strategic opportunities and from operational matters while we integrate these acquisitions; and (7) changes in our ability to access liquidity and funding on acceptable terms, including as a result of changes in our credit spreads or a downgrade in our credit ratings or those of our more significant subsidiaries.

Important information

Numerous factors could affect the future results of Santander and could result in those results deviating materially from those anticipated in the forward-looking statements. 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 of this presentation and are based on the knowledge, information available and views taken on such date; 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.

No offer

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 this presentation. No investment activity should be undertaken on the basis of the information contained in this 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.

Historical performance is not indicative of future results

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 period. Nothing in this presentation should be construed as a profit forecast.

Third Party Information

In particular, regarding the data provided by third parties, neither Santander, nor any of its administrators, directors or employees, either explicitly or implicitly, guarantees that these contents are exact, accurate, comprehensive or complete, nor are they obliged to keep them updated, nor to correct them in the case that any deficiency, error or omission were to be detected. Moreover, in reproducing these contents in by any means, Santander may introduce any changes it deems suitable, may omit partially or completely any of the elements of this presentation, and in case of any deviation between such a version and this one, Santander assumes no liability for any discrepancy.

Highlights

Growth		Stock continued to grow. Loans: +1% QoQ and +6% YoY, deposits +5% QoQ and +9% YoY
		Signs of normalisation of lending with mortgage and consumer new lending increasing in June and lending to SMEs and corporates reducing from their peak in April
		Digital adoption accelerating rapidly with 47% of sales through our digital channels in Q2 (vs. 36% in 2019) and 40 million digital customers (+15% YoY), of which more than 32 million now use mobile banking (+22% YoY)
Profitability		Net operating income up 2% driven by resilient customer revenue and cost reduction ahead of plan (-5% YoY1 )
		Underlying attributable profit in H1'20 of EUR 1,908 mn (EUR 1,531 mn in Q2) impacted by higher LLPs, totalling EUR 7 bn
		Economic consequences of COVID-19 crisis, ongoing lower for longer interest rate environment and higher discount rates reflecting volatility and risk premiums have led to impairments of goodwill and DTAs of EUR -12.6 bn, principally relating our business in the UK (EUR -6.1 bn) and in the US (EUR -2.3 bn). These write downs do not impact our capital ratios
Strength		The Group maintains the cost of credit of 1.4-1.5% guidance for year end, with robust credit quality thanks to mitigation measures and volumes increase, reflected in a 25 bp improvement year-on-year in the NPL ratio and an increase in coverage to 72%
		Strong organic capital generation in Q2 (28 bps), with Group CET1 reaching 11.84%2 , including dividend accrual of 6 bps towards a potential cash dividend against 2020 results which reflects the board's commitment to apply a full cash dividend policy as soon as conditions permit3
		Board's intention is to propose to shareholders the payment of a scrip dividend (payable in new shares) against 2019 results, equivalent to EUR 0.10 per share
Delivered solid operating performance (net operating income +2%) and strengthened capital position as CET1 increased to 11.84%, at the top end of our 11-12% target range
		Note: Changes in constant euros 5 (1) In real terms (2) Data applying the IFRS 9 transitional arrangements (3) Subject to the normalisation of market conditions and regulatory guidance and approvals

We delivered strong net operating income performance (+2% in constant euros), though profit affected by COVID-19 related provisions

			% change
EUR mn	H1'20	H1'19	Euros	Constant Euros
Net interest income	16,202	17,636	-8	0
Net fee income	5,136	5,863	-12	-4
Other income	1,180	937	26	26
Total income	22,518	24,436	-8	0
Operating expenses	-10,653	-11,587	-8	-2
Net operating income	11,865	12,849	-8	2
Loan-loss provisions1	-7,027	-4,313	63	78
Other results	-997	-957	4	12
Underlying PBT	3,841	7,579	-49	-44
Net capital gains and provisions	-12,706	-814	-	-
Attributable profit	-10,798	3,231	-	-
Underlying attributable profit2	1,908	4,045	-53	-48

Resilient customer revenue
even with lower business activity

Strong performance in CIB in the quarter

Accelerating the reduction in our cost base

LLPs impacted by COVID-19 charges

Impairments arising from the deterioration of the macroeconomic scenario related to COVID-19

Net capital gains and provisions

H1'19
Capital gains Prisma (Argentina)	+150
Restructuring costs Spain: -600 • UK: -92 • Poland: -12 •	-704
Property sales (Corporate Centre)	-180
PPI1 (UK)	-80
Group total -814

H1'20

Goodwill impairment UK: -6,101 • US: -2,330 • Poland: -1,192 • SCF (Nordics and others): -477 •	-10,100
Deferred tax assets	-2,500
Restructuring costs + Others UK: -33 • SCF: -28 • Poland: -5 • Other: -40 •	-106
Group total	-12,706

Capital ratios reinforced with Group CET1 of 11.84%, at the top end of our 11-12% target, after strong organic capital generation in the quarter

CET1 ratio evolution

(1) Accrual of 6 basis points in the quarter to allow the flexibility to pay a cash dividend against 2020 results, as soon as market conditions normalise and subject to regulatory approvals and guidance.

(2) Includes Ebury -0.05

(3) Markets -0.08, Pensions -0.06 and other deductions -0.05

Data applying the IFRS 9 transitional arrangements

H1'20

Highlights

Group performance

Business areas review

Key takeaways

Appendix

Group Performance

Group business activity

In the latter part of the quarter, we gradually began to return to pre-COVID activity as lockdowns were lifted…

% Branches open

	Peak lockdown	June
	26%	78%
	77%	99%	Lockdown
Europe	69%	83%	restrictions eased
	97%	99%
	84%	99%
North	72%	81%
America	57%	77%	Some lockdown
	74%	95%	restrictions
South America	67%	70%	remain
	99%1	100%

Nearly full operational activity in our:

Branches: c. 90% Group's branches open

ATMs: full availability throughout the crisis

PoS: recovering to near pre-crisis levels, following 25% turnover growth from low reached in April

Contact Centres: significant improvement as recovering activity levels.

Our priority is to continue to ensure the health and protection of all employees and customers as well as our business continuity

… which is reflected in signs of normalisation in new retail lending in recent weeks, particularly in Europe…

New Mortgage lending¹ (daily average, constant EUR mn) New Consumer lending¹ (daily average, constant EUR mn)

… while corporate lending, which has been supported by government guarantees, and CIB have reduced from their peak in April

New SME and Corporates lending¹

(daily average, constant EUR mn)

CIB change stock of loans

(L&A to customers excluding reverse repos, constant EUR billion)

Note: Geographic regions are calculated as the sum of the largest markets (1) Contracts which have been paid in the reporting period which are reflected in stock of loans

As a result, in June, the Group's new lending was similar to pre-COVID levels

Note: Jun-20 changes in constant euros. Loans and advances to customers excluding reverse repos. Customer funds: customer deposits excluding repos + marketed mutual funds 14 (1) Geographic regions are calculated as the sum of the largest markets. Contracts which have been paid in the reporting period which are reflected in stock of loans

The stock of retail loans has remained stable while SME, corporate and CIB balances have increased

SMEs and Corporates )

(Stock of loans¹

Note: Geographic regions are calculated as the sum of the largest markets

(1) Stock of loans and advances to customers excluding reverse repos. In constant EUR billion

Digital adoption has accelerated (mobile customers +5.8 mn YoY) resulting in increased digital sales penetration up to 47% in Q2

(1) Every physical or legal person, that, being part of a commercial bank, has logged in its personal area of internet banking or mobile phone or both in the last 30 days (2) Percentage of new contracts executed through digital channels during the period (3) Private accesses. Logins of bank's customers on Santander internet banking or apps. ATM accesses by mobile are not included

(4) Customer interaction through mobile or internet banking which resulted in a change of balance. ATM transactions are not included

Group Performance

Group earnings

In results, resilientrevenue driven by our strong customer relationships…

NII affected by non-business related impacts and lower interest rates. NII from recurring business increased 4% in constant euros

Fees affected by lower customer transactions but beginning to recover as activity increases

Retail Banking	53%	Wealth Management 31% & Insurance	SCIB	16%
1 Fee income YoY	-12%	+1%		+20%
growth1 Activity
-24% PoS +25% turnover	Apr-20/Apr-19 Jun-20/Apr-20	+1% YoY SAM (AuM) + 4% QoQ	GTB2	+3% YoY
		+10% Private Banking (fees) YoY	GDF3	+28% YoY
-26% Card +28% turnover	Apr-20/Apr-19 Jun-20/Apr-20	Recovering to 75% of Insurance pre-crisis levels in June premiums (30% in April)	Global Markets	+42% YoY

Note: Weight refers to net fee income generated by global business over total Group net fee income. WM&I considering the total fee generated by insurance and asset management, including those transferred to the commercial network (Retail Banking)

(1) Percentage change in constant euros

(2) Global Transaction Banking
(3) Global Debt Financing

Cost reductions are ahead of plan as we capture incremental cost efficiencies

Accelerating the cost reduction trend in most markets

Europe efficiencies achieved: >EUR 300 mn in H1'20 (>75% of the FY'20 initially planned)

Estimated year-end cost of credit of 1.4-1.5% with credit quality supported by mitigation measures and volume increases

Loan-loss provisions

Credit quality ratios

Percentage change in constant euros

Note: Exposure and coverage ratio by stage in appendix, page 65 (appendix)

Close to 80% of our moratoria is granted to individuals, o/w c. 90% secured

30 Jun 20	# clients (mn) o/w government programmes	Total amount o/w government programmes (EUR bn)	% lending portfolio
Mortgages	0.5	69	23%
	0.3	55
	4.6	22	10%
Consumer	1.4	7
SMEs &	0.3	25	6%
Corporates	0.2	10
Total	5.4	116	12%
	1.9	72

c. 60% are residential mortgages, mainly concentrated in UK (c. EUR 41 bn) with low average LTVs (41%)
c. 65% of consumer loans are auto loans (c. EUR 14 bn)
SMEs & Corporate moratoria based on internal rating and complemented with liquidity facilities under government guarantees

Performance of current expired moratoria, aligned with 2020 forecasted losses

Maturity profile of loans subject to moratoria

Residual maturity as of 30 June 20, EUR bn

As of 30 June, c. 25% of the total moratoria had expired (c. EUR 29 bn), of which 98% remains performing
- Over 60% (EUR 18 bn) are residential mortgages, mostly in the UK, aligned with prior performance levels
- c. 30% (EUR 9 bn) are consumer o/w over 90% is auto, mainly in SCUSA.
- In SMEs & Corporates, very small amount expired (EUR 2 bn) with management focus on predictive analysis of customer behavior
Expected losses are included in the estimated cost of credit for the year

By 15 July, in total >EUR 40 bn had already expired with similar credit quality

Group net operating income growth supported by our geographic and business diversification

H1'20 (vs. H1'19)	Net operating income (EUR mn)	Underlying attributable profit (EUR mn)	Contribution to Group's Underlying profit
Europe	4,314 -10%	1,075 -54%	35%
North America	3,301 +2%	617 -29%	20%
South America	5,093 +8%	1,383 -13%	45%
Global businesses
SCIB	1,683 +32%	928 +23%	Enhancing our local scale
WM&I	605 +7%	427 +3%	with global reach

YoY changes in constant euros

Underlying profit contribution excludes Corporate Centre (EUR -1,125 mn) and Santander Global Platform. South America's weight includes Uruguay & Andean Region (EUR 96 mn)

Europe main markets

KEY DATA	H1'20	% H1'19
Loyal / active customers (%)	33	+2 pp
Digital customers (mn)	5.1	+10%
NPL ratio (%)	6.55	-47 bps
Cost of credit (%)	0.68	+27 bps
Efficiency ratio (%)	54.9	-22 bps
RoTE (%)	3.2	-6.1 pp

VOLUMES¹

Underlying . profit att	161	79 1	251	-63 9
PBT	237	112 0	350	-62 6
LLPs	-313	-50 3	-941	100 1
operating income Net	665	-21 2	1 509 ,	-9 1
Operating expenses	-896	1 -5	-1 841 ,	-10 0
Total income	1 562 ,	-12 7	3 350 ,	-9 6
income Net fee	535	-16 8	1 178 ,	-5 5
NII	931	0 6	1 856 ,	-8 0
P&L*	Q2'20	% Q1'20	H1'20	% H1'19

(*) EUR mn

High activity in SMEs and Corporates boosted by loans with ICO guarantee, reaching 27% market share and more than EUR 11 bn loans growth in the quarter

Profit impacted by lower non-customer revenue and higher LLPs, partially offset by cost reduction efforts. QoQ recovery in NII

NPL ratio improved 47 bps YoY (with a high level of corporate loans granted) and coverage ratio rose to 43.3%

Note: Underlying RoTE

(1) Loans and advances excluding reverse repos. Customer deposits excluding repos

KEY DATA	H1'20	% H1'19
Active customers (mn)	18.4	-3%
NPL ratio (%)	2.52	+28 bps
Cost of credit (%)	0.78	+42 bps
Efficiency ratio (%)	43.4	-120 bps
RoTE (%)	11.0	-4.3 pp

Underlying . profit att	258	19 1	477	-25 8
PBT	466	22 6	849	-22 6
LLPs	-184	-41 4	-501	177 1
operating income Net	626	-3 5	1 283 ,	1 4
Operating expenses	-469	9 -7	-983	-3 6
Total income	1 095 ,	4 -5	2 266 ,	-0 9
Net fee income	159	-14 6	345	-16 3
NII	947	-2 0	1 926 ,	2 5
P&L*	Q2'20	% Q1'20	H1'20	% H1'19

(*) EUR mn and % change in constant euros

VOLUMES¹

39 38 +3% YoY

Most markets showed signs of recovery in the latter part of the quarter

Net operating income up driven by strong NII in Q1 and cost reductions, partially offset by net fee income (lower activity)

Increased COVID related provisions resulted in a 26% decrease in underlying profit YoY but rebounding in Q2

Note: Underlying RoTE

(1) Constant euros. Loans and advances excluding reverse repos. Customer deposits excluding repos

Jun-20

KEY DATA	H1'20	% H1'19
Loyal / active customers (%)	31	+1 pp
Digital customers (mn)	6.1	+7%
NPL ratio (%)	1.08	-5 bps
Cost of credit (%)	0.23	+17 bps
Efficiency ratio (%)	66.0	+558 bps
RoTE (%)	2.0	-5.9 pp

VOLUMES¹

P&L*	Q2'20	% Q1'20	H1'20	% H1'19
NII	871	-0 2	1 769 ,	-7 7
fee income Net	96	-47 9	290	-31 6
income Total	979	-8 0	2 077 ,	-13 0
Operating expenses	-656	-5 3	-1 370 ,	-4 9
operating income Net	323	-13 2	707	-25 2
LLPs	-239	28 5	-430	437 5
PBT	80	-30 5	198	-75 0
Underlying . profit att	54	-33 2	139	-76 1

(*) EUR mn and % change in constant euros

Income impacted by base rate cuts and regulatory changes in fees, partially offset by the -50 bps in the 1I2I3 C/A remuneration in May, and will benefit from a further cut in August

Continued focus on cost management; operating expenses down 5% YoY through realised efficiency savings

Credit impairments increased largely due to COVID-19 charges; underlying LLPs remain low

Note: Underlying RoTE

(1) Constant euros. Loans and advances excluding reverse repos. Customer deposits excluding repos

South America main market

KEY DATA	H1'20	% H1'19
Loyal / active customers (%)	22	-
Digital customers (mn)	14.5	+14%
NPL ratio (%)	5.07	-20 bps
Cost of credit (%)	4.67	+83 bps
Efficiency ratio (%)	31.8	-67 bps
RoTE (%)	17.1	-4.5 pp

VOLUMES¹

Loans & Advances

Jun-19 Dec-19 Mar-20 Jun-20

	(EUR bn)	Customer Deposits
45	45	50	59	+31% YoY

P&L*	Q2'20	% Q1'20	H1'20	% H1'19
NII	1 813 ,	-3 4	4 083 ,	1 0
Net fee income	614	-13 4	1 483 ,	-1 5
Total income	2 651 ,	1 7	788 5 ,	3 8
Operating expenses	-835	0 3	-1 839 ,	1 7
operating income Net	1 816 ,	2 4	3 949 ,	4 9
LLPs	-843	-4 3	-1 909 ,	59 9
PBT	942	18 9	1 881 ,	-18 6
Underlying . profit att	478	10 6	995	-17 4

(*) EUR mn and % change in constant euros

Double-digit YoY volume growth, with credit quality at controlled levels

Net operating income growth driven by NII, gains on financial transactions and efficiency improvement

Note: Underlying RoTE

Jun-19 Dec-19 Mar-20 Jun-20

(1) Constant euros. Loans and advances excluding reverse repos. Customer deposits excluding repos

North America

KEY DATA	H1'20	% H1'19
Loyal / active customers (%)	21	+2 pp
Digital customers (k)	1,052	+7%
NPL ratio (%)	1.49	-83 bps
Cost of credit (%)	3.30	+21 bps
Efficiency ratio (%)	42.5	+18 bps
1 RoTE (%)	4.7	-6.9 pp

VOLUMES²

Underlying . profit att	151	149 5	211	-55 8
PBT	163	15 7	305	-66 7
LLPs	-832	-14 6	-1 804 ,	49 3
operating income Net	1 024 ,	-8 6	2 144 ,	-2 9
Operating expenses	-776	-4 1	-1 585 ,	-2 2
Total income	1 801 ,	-6 7	3 730 ,	-2 6
Net fee income	215	-14 0	465	-5 3
NII	1 429 ,	-2 4	2 891 ,	-1 4
P&L*	Q2'20	% Q1'20	H1'20	% H1'19

(*) EUR mn and % change in constant euros

Improved YoY trend in volumes with double-digit growth, both in loans and customer funds

Total income affected by lower rates, lease income and lower activity partially offset by cost control

Net operating income down 3%, whilst profit down due primarily to the COVID-19 impact on provisions

Note: Underlying RoTE (1) RoTE adjusted for excess capital. Otherwise 3%

(2) Constant euros. Loans and advances excluding reverse repos. Customer deposits excluding repos

North America

KEY DATA H1'19	H1'20	% H1'19
Loyal / active customers (%)	35	+4 pp
Digital customers (mn)	4.6	+31%
NPL ratio (%)	2.50	+29 bps
Cost of credit (%)	2.95	+34 bps
Efficiency ratio (%)	39.5	-206 bps
RoTE (%)	15.5	-5.0 pp

VOLUMES¹

P&L*	Q2'20	% Q1'20	H1'20	% H1'19
NII	650	-4 5	1 448 ,	2 4
fee income Net	185	2 2	396	2 0
Total income	905	4 7	1 912 ,	7 6
Operating expenses	-341	-3 7	-756	2 3
operating income Net	565	10 6	1 156 ,	11 4
LLPs	-291	22 6	-564	47 0
PBT	267	0 3	578	-10 3
Underlying . profit att	186	-1 1	406	4 2

(*) EUR mn and % change in constant euros

Solid loan performance driven by corporates, CIB and mortgages. Strong digital customers growth

Net operating income increased at double-digit rates both QoQ and YoY due to higher revenues and strong efficiency improvement

Double-digit profitability and profit growth, with reduced non-controlling interests

Corporate Centre

P&L*	H1'20	H1'19
NII	-658	-600
Gains/Losses FT on	78	-171
Operating expenses	-166	-193
LLPs and other provisions	-402	-139
and minority interests Tax	61	46
Underlying . profit att	-1 125 ,	-1 108 ,

(*) EUR mn

NII impacted by front-loading the 2020 issuance plan and an increased liquidity buffer

Positive impact of FX hedging cost reflected in results from financial transactions

Operating expenses trend continued (-14% vs. H1'19), driven by the streamlining and simplification measures

Provisions include non-recurring charges for certain holdings whose valuation has been affected by the crisis

In the first half, we have grown our net operating income by 2% and CET1 to 11.84%, at the top end of our 11-12% target range

	 We expect to remain at the top end of our 11-12% target range by year end
Strong capital position Strong operating	 Given our capital strength and operating performance, the board intends to propose a scrip dividend (payable in new shares) against 2019 results, equivalent to EUR 0.10 per share, and the Bank has 6 bps of CET1 capital in the quarter for a potential cash dividend against 2020 results1 accrued
	 Total income for H1 unchanged YoY, with CIB delivering 23% growth in attributable profit for the period. Customer revenue expected to recover in H2'20
performance	 Cost reduction ahead of plan, with expenses falling 5% in real terms. Disciplined cost management expected to continue in H2'20
Robust credit quality	 The Group maintains the estimation of cost of credit of 1.4-1.5% at year end
Accelerating our	 Accelerating our transformation plans to leverage both our scale and the collective strengths of our regions and global businesses, learning from customer behaviour changes during the pandemic
transformation plans	 Focus on simplifying our operations, improving customer experience to grow profitably and with improved efficiency

Our net operating income forecast is consistent with our Investor Day RoTE target of 13-15%

Appendix

Primary segments

Secondary segments

Other countries. Detail

Balance sheet and capital management

Yield on loans and cost of deposits

NPL and coverage ratios and cost of credit

Responsible Banking

Quarterly income statements

Glossary

Europe

KEY DATA	H1'20	% H1'19
Loyal / active customers (%)	36	+1 pp
Digital customers (mn)	14.7	+9%
NPL ratio (%)	3.24	-24 bps
Cost of credit (%)	0.47	+23 bps
Efficiency ratio (%)	54.8	+115 bps
RoTE (%)	4.4	-5.3 pp

Extracting additional synergies from transformation processes

Leveraging digital transformation to improve customer experience

The combined strengths of our European businesses allow us to create `One Santander Europe´

P&L*	Q2'20	% Q1'20	H1'20	% H1'19
NII	3	-1	6	-4
	352	0	787	3
	,		,
Net	1	-15	2	-8
fee	098	7	413	0
income	,		,
Total income	4 577 ,	-6 9	9 551 ,	8 -7
Operating expenses	-2 526 ,	-5 7	-5 237 ,	-5 9
operating	2	-8	4	-9
income	051	3	314	9
Net	,		,
LLPs	-877	-33 5	-2 211 ,	163 0
PBT	1	39	1	-50
	014	9	747	4
	,		,
Underlying	632	44	1	0
. profit		7	075	-54
att			,

(*) EUR mn and % change in constant euros

Loans up YoY boosted by Spain (loans with ICO guarantee), the UK (mortgage and corporate lending) and CIB

PBT down due to higher LLPs based on the expected deterioration arising from COVID-19

Ahead of plan on our cost savings target

North America

KEY DATA	H1'20	% H1'19
Loyal / active customers (%)	33	+4 pp
Digital customers (mn)	5.7	+26%
NPL ratio (%)	1.73	-56 bps
Cost of credit (%)	3.21	+26 bps
Efficiency ratio (%)	41.5	-58 bps
1 RoTE (%)	8.6	-6.0 pp

P&L*	Q2'20	% Q1'20	H1'20	% H1'19
NII	2 079 ,	-3 1	4 339 ,	-0 2
Net fee income	400	-6 9	860	-2 1
Total income	2 706 ,	-3 0	642 5 ,	0 6
Operating expenses	-1 117 ,	0 -4	-2 341 ,	-0 8
Net operating income	1 589 ,	-2 3	3 301 ,	1 7
LLPs	-1 123 ,	-6 9	-2 368 ,	48 7
PBT	430	5 4	883	-43 4
Underlying . profit att	336	33 3	617	-28 8

(*) EUR mn and % change in constant euros

Increasing coordination and cooperation between Mexico and the US

Continued development of the USMX trade corridor (SCIB: +19%; Commercial: +16%)

Joint technology programmes between the two countries

Double-digit volume growth, both in loans and customer funds

Net operating income +2% YoY with improvement in revenue and costs

Profit affected by LLPs increase and reduced non-controlling interests in SC USA and Mexico

South America

KEY DATA	H1'20	% H1'19
Loyal / active customers (%)	25	-1 pp
Digital customers (mn)	18.8	+15%
NPL ratio (%)	4.74	-7 bps
Cost of credit (%)	3.49	+62 bps
Efficiency ratio (%)	35.2	-107 bps
RoTE (%)	16.6	-4.2 pp

P&L*	Q2'20	% Q1'20	H1'20	% H1'19
NII	2	-0	671	6
	606	1	5	1
	,		,
Net	774	-13	1	-1
fee		2	847	5
income			,
income Total	3 690 ,	4 0	7 854 ,	7 0
Operating expenses	-1 275 ,	0 7	-2 761 ,	5 1
operating	2	8	093	8
income	416	5	5	1
Net	,		,
LLPs	-1	-1	-2	63
	110	0	435	3
	,		,
PBT	1	19	2	-17
	254	6	465	2
	,		,
Underlying	685	13	1	-13
. profit		6	383	3
att			,

(*) EUR mn and % change in constant euros

We continue to advance creating a more connected region, capable of capturing business opportunities, focusing on the customer and profitable growth

Overall double-digit growth in volumes

Digital customers increased strongly

H1'20 profit decrease due to COVID-19 impact on provisions

Net operating income grew 8% YoY backed by higher income and efficiency improvement

Positive performance in the quarter in all P&L lines

Appendix

Primary segments

Secondary segments

Other countries. Detail

Balance sheet and capital management

Yield on loans and cost of deposits

NPL and coverage ratios and cost of credit

Responsible Banking

Quarterly income statements

Glossary

Retail Banking

P&L*	Q2'20	% Q1'20	H1'20	% H1'19
NII	141	-2	15	-0
	7	5	026	8
	,		,
Net	1	-18	3	-10
fee	495	9	518	3
income	,		,
Total income	8 859 ,	-4 5	18 831 ,	-3 5
Operating expenses	-4 084 ,	-3 9	-8 611 ,	-2 3
operating	4	-4	10	-4
income	775	9	220	4
Net	,		,
LLPs	2	-21	-6	74
	846	0	735	4
	,		,
PBT	1	54	2	-52
	711	2	930	0
	,		,
Underlying	982	71	1	-53
. profit		2	616	9
att			,

(*) EUR mn and % change in constant euros

Activity

EUR bn and % change YoY in constant euros

Our priority was to ensure the necessary financial support for our customers, collaborators and local authorities

Focus on accelerating our digital transformation, through a multi-channel strategy

SCIB Corporate & Investment Banking

(Constant EUR mn)

P&L*	Q2'20	% Q1'20	H1'20	% H1'19
NII	713	14 1	1 384 ,	12 1
fee income Net	406	6 9	810	20 3
Total income	1 426 ,	17 9	2 726 ,	16 7
Operating expenses	-507	-0 4	-1 043 ,	-1 5
operating income Net	919	31 0	1 683 ,	31 8
LLPs	-245	--	-249	371 6
PBT	646	0 -4	1 391 ,	17 1
Underlying . profit att	437	-2 3	928	22 6

(*) EUR mn and % change in constant euros

In a volatile trading environment CIB continued to support our customers through contingency lines and other financing solutions

YoY profit growth driven by double-digit increase in the majority of businesses, particularly Global Markets and Global Debt Financing

Strong revenue growth in H1'20 by sound revenue performance and strict cost management

VOLUMES¹ Stock (EUR bn)

Total income

1.8% RoRWA 38.3% Efficiency ratio

Jun-19 Dec-19 Mar-20 Jun-20

Wealth Management & Insurance

P&L*	Q2'20	% Q1'20	H1'20	% H1'19
NII	104	-17 8	236	-13 0
Net fee income	279	-8 9	599	9 8
Total income	482	-13 4	1 069 ,	3 7
Operating expenses	-220	0 -7	-464	0 0
operating income Net	263	-18 1	605	6 8
LLPs	-5	-19 2	-12	--
PBT	255	-18 5	589	3 5
Underlying . profit att	186	-17 1	427	2 6

(*) EUR mn and % change in constant euros

Total contribution to Group's profit¹ EUR 1,085 mn (-1% YoY)

Private Banking Collaboration Volumes EUR 6,950 mn (+37% YoY) +1% YoY Total fees generated³ Weight of Total Group 31%

44 Note: Total assets marketed and/or managed (1) Profit after tax + fees generated by asset management and insurance transferred to the commercial network

(2) Total adjusted for funds from private banking customers managed by SAM. 2019 figures included the pro forma of the asset management Popular's joint venture

(3) Including fees generated by asset management and insurance transferred to the commercial network

Profit resilience YTD: sound revenues and flat costs. Supported by commercial activity in the beginning of the year and Q2 impacted by the effects from the COVID-19 crisis

In Private Banking, continued good activity levels and business growth, despite the markets situation and the reduction of interest rates

In SAM, volumes recovering, both by market movement and by positive net sales in May and June

In Insurance, new production is starting to recover pre-crisis level in the second part of the quarter, mainly in LatAm

SGP SGP continued deploying global payments solutions for SMEs and individuals, incorporating new services and functionalities on schedule

s E M S		Global Merchant Services	Enhance our competitive position in E-commerce (Getnet reached a market share of around 22% in Brazil) Further additional functionalities included to complete the roll-out in Mexico and the rest of countries >1 mn active merchants. H1'20 revenue of EUR 242 mn
	OneTrade	Global Trade Services	Santander OneTrade connected three countries (Brazil, Spain and the UK) and launched more services & products Following the completion of the operation, GTS and Ebury teams are working on a joint services and commercial plan, defining synergies and identifying complementary aspects >200 k SME customers trading internationally. H1'20 revenue of EUR 640 mn (+11% YoY)
s l a u d vi i d n I		Banking without a bank	Operates in Brazil, Mexico and Chile Active customers grew 91% YoY, whereas H1'20 transactions are growing by 55% YoY Our goal is to scale the business to reach over 5 mn active customers across 7 markets in the medium term
		Global Digital Banking	Openbank is already in Spain, Germany, the Netherlands and Portugal. Argentina obtained its banking licence and is expected to start operations in the first half of 2021 Loan growth +57% YoY, deposits +10% YoY, # of securities transactions +108% YoY and brokerage accounts x3 New customer growth +95% (H1'20 vs. H1'19) - average of 4.6 products per customer

Note: GMS and GTS revenue are Including Retail Banking and excluding SCIB and WM&I

Appendix

Primary segments

Secondary segments

Other countries. Detail

Balance sheet and capital management

Yield on loans and cost of deposits

NPL and coverage ratios and cost of credit

Responsible Banking

Quarterly income statements

Glossary

other markets

KEY DATA	H1'20	% H1'19
Loyal / active customers (%)	46	+1 pp
Digital customers (k)	866	+14%
NPL ratio (%)	4.43	-57 bps
Cost of credit (%)	0.30	+27 bps
Efficiency ratio (%)	44.3	+50 bps
RoTE (%)	8.5	-4.0 pp

VOLUMES¹

Underlying . profit att	92	35 2	160	-38 6
PBT	132	35 2	230	-39 3
LLPs	-24	-70 0	-105	--
operating income Net	172	-13 4	372	0 -7
Operating expenses	-145	-4 2	-296	1 -5
Total income	317	-9 4	668	-6 2
fee income Net	90	-11 0	191	-2 9
NII	197	-2 3	399	-6 9
P&L*	Q2'20	% Q1'20	H1'20	% H1'19

(*) EUR mn

YoY

Higher volumes boosted by the sustained growth in individuals and companies loans and demand deposits

PBT decreased mainly impacted by higher LLPs and lower NII, dampened by lower average interest rates

Europe other markets

KEY DATA	H1'20	% H1'19
Loyal / active customers (%)	53	+1 pp
Digital customers (k)	2,635	+9%
NPL ratio (%)	4.57	+36 bps
Cost of credit (%)	0.96	+30 bps
Efficiency ratio (%)	42.4	-42 bps
1 RoTE (%)	8.3	-8.6 pp

VOLUMES²

Underlying . profit att	51	129 7	73	-49 7
PBT	105	75 5	167	-41 2
LLPs	-89	-2 8	-184	0 77
operating income Net	235	26 0	428	-6 0
Operating expenses	-143	-13 0	-315	-7 5
income Total	377	7 6	742	-6 6
fee income Net	104	-7 2	220	-1 7
NII	251	-11 3	547	-0 5
P&L*	Q2'20	% Q1'20	H1'20	% H1'19

(*) EUR mn and % change in constant euros

Income impacted mainly by interest rates cuts, higher BFG contribution and lower dividend income

Costs decreased due to efficiency projects and the reduction in costs related to commercial activity

LLPs up 77% in a complicated business environment related with COVID-19 crisis

Note: Underlying RoTE (1) RoTE adjusted for excess capital. Otherwise 5%

(2) Constant euros. Loans and advances excluding reverse repos. Customer deposits excluding repos

South America other markets

KEY DATA	H1'20	% H1'19
Loyal / active customers (%)	45	-1 pp
Digital customers (k)	1,339	+15%
NPL ratio (%)	4.99	+47 bps
Cost of credit (%)	1.46	+36 bps
Efficiency ratio (%)	40.3	-146 bps
RoTE (%)	11.2	-6.4 pp

VOLUMES¹

P&L*	Q2'20	% Q1'20	H1'20	% H1'19
NII	425	-3 3	873	8 9
Net fee income	74	-17 9	166	-2 3
income Total	584	7 8	1 137 ,	6 3
Operating expenses	-228	0 9	-458	2 5
operating income Net	356	12 8	678	8 9
LLPs	-183	14 3	-346	95 6
PBT	171	9 3	331	-30 6
Underlying . profit att	86	-9 4	183	-31 0

(*) EUR mn and % change in constant euros

Change in the funding mix (demand deposits +39% YoY) Increased corporate loans and state guaranteed loans for SMEs

Net operating income growth boosted by higher NII (larger volumes and lower cost of funds) and efficiency improvement

QoQ strong gains on financial transactions offset lower NII (lower inflation). Higher LLPs due to COVID19 and greater tax burden

Note: Underlying RoTE

(1) Constant euros. Loans and advances excluding reverse repos. Customer deposits excluding repos

South America other markets

KEY DATA	H1'20	% H1'19
Loyal / active customers (%)	44	-3 pp
Digital customers (k)	2,557	+20%
NPL ratio (%)	3.15	-64 bps
Cost of credit (%)	5.67	+134 bps
Efficiency ratio (%)	54.0	-587 bps
RoTE (%)	28.8	+11.8 pp

VOLUMES¹

P&L*	Q2'20	% Q1'20	H1'20	% H1'19
NII	261	34 5	502	61 5
fee income Net	56	-3 6	132	-10 0
income Total	310	22 2	628	43 1
Operating expenses	-153	4 9	-339	29 1
operating income Net	157	46 6	289	64 0
LLPs	-57	-1 1	-132	51 8
PBT	82	123 5	125	62 1
Underlying . profit att	75	159 2	109	144 5

(*) EUR mn and % change in constant euros

Strong customer deposits growth. High liquidity in both pesos and US Dollars

H1'20 profit and RoTE increase due to greater NII and efficiency improvement

High digitalisation levels and solid loyalty ratio

Note: Underlying RoTE

(1) Constant euros. Loans and advances excluding reverse repos. Customer deposits excluding repos

Increased volumes and activity reflected in profit growth and higher profitability

Note: Underlying attributable profit in constant EUR mn and underlying RoTE

Appendix

Primary segments

Secondary segments

Other countries. Detail

Balance sheet and capital management

Yield on loans and cost of deposits

NPL and coverage ratios and cost of credit

Responsible Banking

Quarterly income statements

Glossary

Santander has a highly liquid balance sheet with a large contribution from customer deposits and diversified MLT wholesale debt instruments

	Liquidity Coverage Ratio (LCR)		Net Stable Funding Ratio (NSFR)
	1 Jun-20	Dec-19	Mar-20
Spain2	193%	143%	105%
SCF	297%	248%	111%
K2 U	149%	145%	124%
Portugal	172%	134%	106%
Poland	188%	149%	130%
U S	133%	133%	116%
Mexico	169%	133%	121%
Brazil	169%	122%	109%
Chile	161%	143%	109%
Argentina	214%	196%	180%
Group	175%	147%	111%

Note: Liquidity balance sheet for management purposes (net of trading derivatives and interbank balances)

(1) Provisional data

(2) LCR and NSFR: Spain: Parent bank, UK: Ring-fenced bank

(3) 12 month average, provisional

In the year to date, the Group has issued EUR 26 bn¹ of MLT debt and is able to cover its very manageable maturity profile

(1) Data include public issuances from all units with period-average exchange rates. Excludes securitisations (2) Other public market issuances in Mexico, Brazil, Chile and Poland

We actively manage interest rate risk and our ALCO portfolios to optimise results while maintaining an appropriate risk profile

Net interest income sensitivity to a +/-100 bp parallel shift EUR mn, May -20

Positive interest rate sensitivity in Europe ALCO portfolios reflect our geographic diversification

Distribution of ALCO portfolios by country %, Jun-20

Issuances YTD against funding plan

EUR bn, Jun-20		Covered Bonds + Senior		Senior Non-Preferred	Hybrids			TOTAL
	Plan	Issued	Plan	Issued	Plan	Issued	Plan	Issued
Santander S.A	4-5	3.0	7-8	7.0	1-2	1.5 1	12-15	11.5
SCF	6-8	3.6	-	0.0	-	0.0	6-8	3.6
U K	6-8	4.8	2-3	0.8	-	0.0	8-11	5.6
SHUSA	-	-	1-2	1.3	-	0.0	1-2	1.3
TOTAL	16-21	11.4	10-13	9.1	1-2	1.5	27-36	2 22.0

2020 Funding plan and issuances

o Frontloading of issuances in the first half of the year, having issued EUR 22 billion² , particularly focused on TLAC eligible issuances
o Through the issuances YTD and access to central bank facilities, many countries have now largely covered their funding needs for the year and future liquidity needs will be assessed depending on market conditions
o Liquidity position remains solid, with LCR above minimum regulatory requirements and ample liquidity buffers in all of our units

Note: Issuance plan subject to, amongst other considerations, market conditions and regulatory requirements. Other secured issuances (for example ABS, RMBS, etc.) are not considered in the table above

Issuance of EUR 1.5 bn AT1 (4.375%) in January 2020, replacing the EUR 1.5 billion AT1 (5.481%) that was called in March, therefore not within the scope of funding plan
EUR 22 billion refers to the four entities given in the table. See slide 54 for full Group figures

Regulatory changes in the last quarter, and increased capital levels, increased the Group's CET1 management buffer to 298 bps

Note: Data calculated using the IFRS 9 transitional arrangements (1) Estimated Countercyclical buffer (2) CET1 management buffer = CET ratio – CET1 requirement

TLAC ratios for the Resolution Group headed by Banco Santander, S.A.

TLAC Ratio

EUR mn

	Dec-19	Mar-20
Own Funds	91 294 ,	91 550 ,
(CET1) of which: Common Equity Tier 1 capital	75 683 ,	75 821 ,
(AT1) of which: Additional Tier 1 capital	742 7 ,	829 7 ,
(T2) of which: Tier 2 capital	7 869 ,	7 900 ,
Eligible Liabilities	24 138 ,	26 271 ,
Subordinated instruments	673	685
Non preferred senior debt	16 473 ,	18 452 ,
Preferred senior equivalent instruments debt and	6 992 ,	134 7 ,
TLAC BEFORE DEDUCTIONS	115 431 ,	117 821 ,
Deductions	62 405 ,	61 567 ,
TLAC AFTER DEDUCTIONS	53 026 ,	56 254 ,
(RWAs) Risk Weighted Assets	279 680 ,	285 354 ,
(% RWAs) TLAC RATIO	19 0%	19 7%
(LE) Leverage Exposure	672 721 ,	699 813 ,
(% LE) TLAC RATIO	7 9%	8 0%

The TLAC ratio as at 31-Mar-20 increased by 75 bps to 19.71%¹ (compared to an expected year-end requirement of 19.52%)
The EUR 2 billion increase in the stock of senior nonpreferred debt was partially offset by an increase in RWAs of approximately EUR 6 billion
The TLAC ratio as a percentage of the leverage exposure remained stable as growth in eligible liabilities was offset by growth in the leverage exposure (EUR 27 billion)

Appendix

Primary segments

Secondary segments

Other countries. Detail

Balance sheet and capital management

Yield on loans and cost of deposits

NPL and coverage ratios and cost of credit

Responsible Banking

Quarterly income statements

Glossary

Yield on loans (%)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20
EUROPE	2	2	2	2	2	2
	77	75	70	68	66	47

Spain	2	2	2	2	1	1
	05	08	02	02	99	86

Finance	4	4	4	4	4	4
Santander	51	48	41	26	27	17
Consumer
United Kingdom	2 72	2 67	2 63	2 59	2 52	2 37
Portugal	1	1	1	1	1	1
	79	76	71	64	63	56

Poland	4	4	4	4	4	3
	14	15	17	17	04	34

NORTH AMERICA	9 81	9 71	9 45	9 20	8 95	7 86
US	8	8	8	7	7	6
	70	52	27	95	77	93

Mexico	12	12	12	12	12	11
	74	82	67	64	25	00

SOUTH AMERICA	12 61	13 43	12 30	12 27	11 71	9 90
Brazil	15	15	15	14	13	12
	86	88	32	49	58	12

Chile	6	8	6	7	7	5
	02	48	86	39	35	74

Argentina	24	23	23	26	23	20
	22	99	95	26	74	05

Cost of deposits (%)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20
EUROPE	0	0	0	0	0	0
	42	42	41	41	39	28

Spain	0	0	0	0	0	0
	14	14	13	13	06	04

Santander	0	0	0	0	0	0
Consumer	60	61	60	58	57	53
Finance
United Kingdom	0 67	0 70	0 70	0 69	0 69	0 52
Portugal	0	0	0	0	0	0
	14	12	10	10	08	06

Poland	0	0	0	0	0	0
	89	89	78	74	65	42

NORTH AMERICA	1 94	1 91	1 99	1 76	1 56	1 14
US	0	0	0	0	0	0
	95	87	96	86	73	39

Mexico	3	4	4	3	3	3
	95	08	14	68	54	21

SOUTH AMERICA	4 20	4 43	3 82	3 42	3 16	2 09
Brazil	4	4	4	3	3	2
	70	70	55	71	16	30

Chile	1	2	1	1	1	0
	62	01	63	47	35	71

Argentina	9	11	10	12	10	7
	93	09	90	29	64	37

Appendix

Primary segments

Secondary segments

Other countries. Detail

Balance sheet and capital management

Yield on loans and cost of deposits

NPL and coverage ratios and cost of credit

Responsible Banking

Quarterly income statements

Glossary

Loan-loss provisions. Geographic distribution

		Q1'20	Q2'20	H1'20
EUR mn	published LLPs	Overlay fund	Total LLPs	Total LLPs	Total LLPs
	253	375	628	313	941
	172	145	317	184	501
	49	142	191	239	430
	5	75	80	24	105
	68	28	95	89	184
	646	327	972	832	1 804 ,
	228	46	273	291	564
	709	358	1 066 ,	843	1 909 ,
	107	56	163	183	346
	39	35	75	57	132
Others	33	14	47	64	111
Total	2 309 ,	1 600 ,	3 909 ,	3 118 ,	027 7 ,

Payment holidays and moratoria – detail by geographic region

Payment holidays and moratoria

	Customers (mn) (k) Clients		EUR	EUR bn bn	% portfolio portfolio %
30 Jun 20	Total	o/w gov programmes	Total	o/w gov programmes	Total	o/w gov programmes
Europe	1 0 ,	0 3 ,	72	51	11%	8%
Mortgages	0 3 ,	0 2 ,	55	45	20%	17%
Other Households	0 7 ,	0 1 ,	5	2	4%	1%
SMEs & Corporates	0 0 ,	0 0 ,	12	4	4%	1%
America North	1 1 ,	0 4 ,	24	8	18%	6%
Mortgages	0 1 ,	0 0 ,	4	3	29%	22%
Other Households	1 0 ,	0 4 ,	12	2	27%	5%
SMEs & Corporates	0 0 ,	0 0 ,	8	3	10%	4%
America South	3 3 ,	1 2 ,	20	12	16%	10%
Mortgages	0 2 ,	0 1 ,	10	7	46%	32%
Other Households	2 9 ,	1 0 ,	5	2	15%	6%
SMEs & Corporates	0 2 ,	0 1 ,	5	3	7%	4%

Coverage ratio by stage

		¹ Exposure		Coverage
	20 Jun -	20 Mar -	20 Jun -	20 Mar -
Stage 1	878	891	0 6%	0 6%
Stage 2	61	53	7% 7	8 2%
Stage 3	33	33	41 1%	40 8%

NPL ratio (%)

	Mar-19	Jun-19	Sep-19	Dec-19	Mar-20	Jun-20
EUROPE	3	3	3	3	3	3
	61	48	47	25	19	24

Spain	29	02	23	6	6	6
	7	7	7	94	88	55

Santander	2	2	2	2	2	2
Consumer	33	24	25	30	43	52
Finance
United Kingdom	1 17	1 13	1 08	1 01	0 96	1 08
Portugal	5	00	4	4	4	4
	77	5	90	83	56	43

Poland	4	4	4	4	4	4
	39	21	35	31	29	57

NORTH AMERICA	2 33	2 29	2 21	2 20	2 02	1 73
US	2	2	2	2	2	1
	41	32	18	20	00	49

Mexico	2	2	2	2	2	2
	12	21	30	19	07	50

SOUTH AMERICA	4 83	4 81	4 81	4 86	4 63	4 74
Brazil	26	27	33	32	4	07
	5	5	5	5	93	5

Chile	4	4	4	4	4	4
	67	52	48	64	63	99

Argentina	3	3	3	3	3	3
	50	79	64	39	97	15

TOTAL GROUP	3 62	3 51	3 47	3 32	3 25	3 26

Coverage ratio (%)

	Mar-19	Jun-19	Sep-19	Dec-19	Mar-20	Jun-20
EUROPE	49	49	48	49	54	53
	5	9	2	8	1	4

Spain	43	42	40	41	6	43
	3	9	6	1	44	3

Santander	105	105	104	106	109	106
Consumer	3	9	2	1	6	1
Finance
United Kingdom	30 9	31 9	34 1	36 5	43 0	46 0
Portugal	50	52	51	52	59	60
	7	9	5	8	0	9

Poland	67	69	69	66	68	69
	6	7	0	8	1	0

NORTH AMERICA	153 4	150 3	155 6	153 0	170 1	206 5
US	161	158	166	161	181	253
	0	4	6	8	4	1

Mexico	130	126	125	128	133	114
	1	9	2	3	9	9

SOUTH AMERICA	94 1	93 0	89 7	88 4	92 9	93 0
Brazil	107	105	101	99	108	110
	7	5	1	8	0	2

Chile	59	59	3	56	2	54
	7	1	57	0	57	7

Argentina	118	126	134	124	131	165
	6	4	0	0	2	7

TOTAL GROUP	67 8	68 1	67 3	67 9	71 3	72 1

Non-performing loans and loan-loss allowances. Breakdown by operating areas. June 2020

Non-performing loans

Loan-loss allowances

Cost of credit (%)

	Mar-19	Jun-19	Sep-19	Dec-19	Mar-20	Jun-20
EUROPE	0	0	0	0	0	0
	24	24	25	28	40	47

Spain	0	0	0	0	0	0
	40	41	41	43	64	68

Santander	0	0	0	0	0	0
Consumer	38	36	38	48	66	78
Finance
United Kingdom	0 07	0 06	0 08	0 10	0 14	0 23
Portugal	0	0	0	(0	0	0
	03	03	00	02)	23	30

Poland	0	0	0	0	0	0
	61	66	71	72	88	96

NORTH AMERICA	2 97	2 95	2 93	2 76	3 02	3 21
US	3	3	3	2	3	3
	11	09	09	85	13	30

Mexico	2	2	2	2	2	2
	62	61	55	49	69	95

SOUTH AMERICA	2 89	2 87	2 90	2 92	3 29	3 49
Brazil	3	3	3	3	43	67
	88	84	85	93	4	4

Chile	1	1	1	1	1	1
	13	10	06	08	25	46

Argentina	02	33	86	09	48	67
	4	4	4	5	5	5

TOTAL GROUP	0 97	0 98	1 00	1 00	1 17	1 26

Appendix

Primary segments

Secondary segments

Other countries. Detail

Balance sheet and capital management

Yield on loans and cost of deposits

NPL and coverage ratios and cost of credit

Responsible Banking

Quarterly income statements

Glossary

We continue to do business in a more responsible and sustainable way

Note: figures as of 2019 and changes on a YoY basis (2019 vs. 2018), unless otherwise stated (1) Dow Jones Sustainability index 2019

(2) Microentrepreneurs are already included in the people financially empowered metric

Santander Responsible Banking goals

We are building a more Responsible Bank aligned with our commitments

(1) According to relevant external indexes in each country (Great Place to Work, Top Employer, Merco, etc.)
(2) Senior positions represent 1% of total workforce
(3) Calculation of equal pay gap compares employees of the same job, level and function
(4) People (unbanked, underbanked or financially vulnerable), who are given access to the financial system, receive tailored finance and increase their knowledge and resilience through financial education
(5) Includes Santander overall contribution to green finance: project finance, syndicated loans, green bonds, capital finance, export finance, advisory, structuring and other products to help our clients in the transition to a low carbon economy. Commitment from 2019 to 2030 is EUR 220 bn
(6) In those countries where it is possible to certify renewable sourced electricity for the properties occupied by the Group
(7) People supported through Santander Universities initiative (students who will receive a Santander scholarship, will achieve an internship in an SME or participate in entrepreneurship programmes supported by the bank)

(8) People helped through our community investment programmes (excluded Santander Universities and financial education initiatives)

Appendix

Primary segments

Secondary segments

Other countries. Detail

Balance sheet and capital management

Yield on loans and cost of deposits

NPL and coverage ratios and cost of credit

Responsible Banking

Quarterly income statements

Glossary

SANTANDER GROUP (EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net interest income	8 682 ,	8 954 ,	8 806 ,	8 841 ,	8 487 ,	715 7 ,	17 636 ,	16 202 ,
Net fee income	2 931 ,	2 932 ,	2 955 ,	2 961 ,	2 853 ,	2 283 ,	863 5 ,	136 5 ,
(losses) Gains financial transactions and other on	472	465	705	790	474	706	937	1 180 ,
Total income	12 085 ,	12 351 ,	12 466 ,	12 592 ,	11 814 ,	10 704 ,	24 436 ,	22 518 ,
Operating expenses	(5 758) ,	(5 829) ,	(5 722) ,	(5 971) ,	(5 577) ,	(5 076) ,	(11 587) ,	(10 653) ,
operating income Net	6 327 ,	6 522 ,	6 744 ,	6 621 ,	6 237 ,	5 628 ,	12 849 ,	11 865 ,
Net loan-loss provisions	(2 172) ,	(2 141) ,	(2 435) ,	(2 573) ,	(3 909) ,	(3 118) ,	(4 313) ,	(7 027) ,
(losses) Other gains and provisions	(471)	(486)	(465)	(542)	(372)	(625)	(957)	(997)
Underlying profit before tax	3 684 ,	3 895 ,	3 844 ,	3 506 ,	1 956 ,	1 885 ,	7 579 ,	3 841 ,
Underlying consolidated profit	2 358 ,	2 542 ,	2 529 ,	2 397 ,	696	1 677 ,	4 900 ,	2 373 ,
Underlying attributable profit	1 948 ,	2 097 ,	2 135 ,	2 072 ,	377	1 531 ,	4 045 ,	1 908 ,
capital gains and provisions* Net	(108)	(706)	(1 634) ,	711	(46)	(12 660) ,	(814)	(12 706) ,
Attributable profit	1 840 ,	1 391 ,	501	2 783 ,	331	(11 129) ,	3 231 ,	(10 798) ,

(*) Including: in Q1'19, capital gains from Prisma, capital losses due to property sales and restructuring costs

in Q2'19, restructuring costs and PPI

in Q3,19, restructuring costs, PPI, deterioration of goodwill ascribed to the UK and impact of devaluation of the ARS on the capital gain from Prisma registered in Q1'19

in Q4'19, net capital gains related to the agreement with Crédit Agricole S.A. to integrate the custody businesses, net positive results in Brazil related to DTAs, net capital

losses related to real estate in Spain, restructuring costs, provisions related to intangible assets and other and impact of appreciation of the ARS on the capital gains from Prisma registered in Q1'19

in Q1'20, restructuring costs in Q2'20, adjustment to the valuation of goodwill, adjustment to deferred tax assets of the Spanish consolidated fiscal group and restructuring costs and other

SANTANDER GROUP (Constant EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net interest income	981 7 ,	8 247 ,	8 296 ,	8 319 ,	8 177 ,	8 025 ,	16 228 ,	16 202 ,
fee income Net	2 666 ,	2 686 ,	2 780 ,	2 781 ,	2 748 ,	2 388 ,	352 5 ,	136 5 ,
(losses) Gains financial transactions and other on	466	471	699	768	475	705	937	1 180 ,
income Total	11 114 ,	11 404 ,	11 775 ,	11 869 ,	11 400 ,	11 118 ,	22 518 ,	22 518 ,
Operating expenses	(5 385) ,	(5 470) ,	(5 522) ,	(5 704) ,	(5 421) ,	(5 232) ,	(10 856) ,	(10 653) ,
operating income Net	5 728 ,	5 934 ,	6 254 ,	6 165 ,	5 979 ,	5 886 ,	11 662 ,	11 865 ,
Net loan-loss provisions	(1 982) ,	(1 955) ,	(2 291) ,	(2 419) ,	(3 782) ,	(3 245) ,	(3 937) ,	(7 027) ,
(losses) Other gains and provisions	(434)	(459)	(434)	(505)	(357)	(640)	(893)	(997)
Underlying profit before tax	3 313 ,	3 520 ,	3 529 ,	3 241 ,	1 840 ,	2 001 ,	6 832 ,	3 841 ,
Underlying consolidated profit	2 131 ,	2 297 ,	2 329 ,	2 218 ,	620	1 753 ,	427 4 ,	2 373 ,
Underlying attributable profit	1 754 ,	1 883 ,	1 966 ,	1 916 ,	307	1 601 ,	3 637 ,	1 908 ,
Net capital gains and provisions*	(168)	(704)	(1 605) ,	591	(46)	(12 660) ,	(872)	(12 706) ,
Attributable profit	1 586 ,	1 179 ,	361	2 507 ,	262	(11 060) ,	2 765 ,	(10 798) ,

(*) Including: in Q1'19, capital gains from Prisma, capital losses due to property sales and restructuring costs

in Q2'19, restructuring costs and PPI

in Q3,19, restructuring costs, PPI, deterioration of goodwill ascribed to the UK and impact of devaluation of the ARS on the capital gain from Prisma registered in Q1'19

in Q4'19, net capital gains related to the agreement with Crédit Agricole S.A. to integrate the custody businesses, net positive results in Brazil related to DTAs, net capital

in Q1'20, restructuring costs in Q2'20, adjustment to the valuation of goodwill, adjustment to deferred tax assets of the Spanish consolidated fiscal group and restructuring costs and other

EUROPE (EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net interest income	3 561 ,	3 580 ,	3 530 ,	3 531 ,	3 435 ,	3 352 ,	141 7 ,	6 787 ,
fee income Net	1 327 ,	1 304 ,	1 310 ,	1 319 ,	1 315 ,	1 098 ,	2 630 ,	2 413 ,
(losses) Gains financial transactions and other on	337	304	455	443	225	126	642	351
income Total	5 225 ,	5 188 ,	5 295 ,	5 292 ,	4 974 ,	4 577 ,	10 413 ,	9 551 ,
Operating expenses	(2 802) ,	(2 789) ,	(2 719) ,	(2 733) ,	(2 712) ,	(2 526) ,	(5 591) ,	(5 237) ,
operating income Net	2 423 ,	2 399 ,	2 576 ,	2 559 ,	2 263 ,	2 051 ,	822 4 ,	314 4 ,
Net loan-loss provisions	(457)	(387)	(497)	(498)	(1 335) ,	(877)	(844)	(2 211) ,
(losses) Other gains and provisions	(198)	(231)	(130)	(209)	(195)	(160)	(429)	(355)
Underlying profit before tax	1 768 ,	1 781 ,	1 949 ,	1 852 ,	733	1 014 ,	3 549 ,	1 747 ,
Underlying consolidated profit	1 276 ,	1 306 ,	1 418 ,	1 370 ,	515	739	2 583 ,	1 255 ,
Underlying attributable profit	1 163 ,	1 191 ,	1 286 ,	1 238 ,	443	632	2 354 ,	1 075 ,

EUROPE (Constant EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net interest income	3 536 ,	3 555 ,	3 539 ,	3 495 ,	3 410 ,	3 377 ,	7 091 ,	6 787 ,
Net fee income	1 323 ,	1 300 ,	1 314 ,	1 312 ,	1 309 ,	1 104 ,	2 623 ,	2 413 ,
(losses) Gains financial transactions and other on	338	304	455	442	226	125	642	351
income Total	5 197 ,	5 159 ,	5 308 ,	5 249 ,	4 945 ,	4 606 ,	10 356 ,	9 551 ,
Operating expenses	(2 790) ,	(2 777) ,	(2 733) ,	(2 713) ,	(2 695) ,	(2 542) ,	(5 567) ,	(5 237) ,
Net operating income	2 407 ,	2 382 ,	2 575 ,	2 536 ,	2 250 ,	2 064 ,	4 789 ,	4 314 ,
provisions Net loan-loss	(452)	(389)	(493)	(493)	(1 328) ,	(883)	(841)	(2 211) ,
(losses) Other gains and provisions	(197)	(230)	(131)	(208)	(193)	(162)	(427)	(355)
Underlying profit before tax	1 759 ,	1 763 ,	1 952 ,	1 835 ,	728	1 019 ,	3 521 ,	1 747 ,
Underlying consolidated profit	1 269 ,	1 292 ,	1 421 ,	1 357 ,	512	743	2 561 ,	1 255 ,
Underlying attributable profit	1 157 ,	1 178 ,	1 289 ,	1 226 ,	439	636	2 335 ,	1 075 ,

Spain (EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net interest income	1 009 ,	1 009 ,	967	934	925	931	2 018 ,	1 856 ,
Net fee income	623	624	614	620	643	535	1 247 ,	1 178 ,
(losses) Gains financial transactions and other on	224	216	408	258	220	96	440	316
income Total	1 857 ,	1 849 ,	1 989 ,	1 811 ,	1 789 ,	1 562 ,	3 706 ,	3 350 ,
Operating expenses	(1 025) ,	(1 020) ,	(999)	(977)	(944)	(896)	(2 044) ,	(1 841) ,
Net operating income	832	829	990	834	844	665	1 661 ,	1 509 ,
provisions Net loan-loss	(242)	(228)	(210)	(176)	(628)	(313)	(470)	(941)
(losses) Other gains and provisions	(112)	(143)	(100)	(100)	(104)	(115)	(255)	(219)
Underlying profit before tax	478	458	681	557	112	237	936	350
Underlying consolidated profit	356	338	491	401	90	160	694	250
Underlying attributable profit	356	338	491	400	90	161	694	251

Santander Consumer Finance (EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net interest income	941	971	977	960	979	947	1 911 ,	1 926 ,
income Net fee	214	201	213	195	187	159	415	345
(losses) Gains financial transactions and other on	13	(18)	14	30	5	(11)	(5)	(5)
income Total	1 167 ,	1 154 ,	1 203 ,	1 185 ,	1 171 ,	1 095 ,	2 321 ,	2 266 ,
Operating expenses	(508)	(527)	(504)	(499)	(514)	(469)	(1 035) ,	(983)
operating income Net	659	627	699	686	656	626	1 286 ,	1 283 ,
Net loan-loss provisions	(122)	(59)	(147)	(148)	(317)	(184)	(181)	(501)
(losses) Other gains and provisions	24	(12)	42	(33)	44	23	12	67
Underlying profit before tax	561	556	594	504	383	466	1 117 ,	849
Underlying consolidated profit	402	401	420	394	277	333	803	610
Underlying attributable profit	324	334	338	319	219	258	658	477

Santander Consumer Finance (Constant EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net interest income	925	954	961	949	973	953	1 878 ,	1 926 ,
fee income Net	213	200	212	194	186	159	413	345
(losses) Gains financial transactions and other on	12	(18)	14	29	6	(11)	(5)	(5)
income Total	1 150 ,	1 136 ,	1 188 ,	1 173 ,	1 165 ,	1 101 ,	2 285 ,	2 266 ,
Operating expenses	(501)	(519)	(498)	(495)	(512)	(471)	(1 020) ,	(983)
operating income Net	649	617	689	678	653	630	1 265 ,	1 283 ,
Net loan-loss provisions	(118)	(63)	(143)	(145)	(316)	(185)	(181)	(501)
(losses) Other gains and provisions	24	(12)	43	(33)	44	23	12	67
Underlying profit before tax	555	542	589	500	381	468	1 097 ,	849
Underlying consolidated profit	398	390	416	390	275	335	788	610
Underlying attributable profit	320	323	334	315	218	259	643	477

United Kingdom (EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net interest income	975	944	908	961	898	871	1 919 ,	1 769 ,
Net fee income	216	207	217	226	193	96	423	290
(losses) Gains financial transactions and other on	15	32	(5)	33	6	12	46	18
Total income	1 206 ,	1 183 ,	1 119 ,	1 220 ,	1 098 ,	979	2 388 ,	2 077 ,
Operating expenses	(739)	(703)	(681)	(712)	(714)	(656)	(1 442) ,	(1 370) ,
operating income Net	467	479	438	508	384	323	946	707
Net loan-loss provisions	(61)	(19)	(77)	(96)	(191)	(239)	(80)	(430)
(losses) gains provisions Other and	(50)	(25)	(43)	(66)	(74)	(4)	(75)	(79)
Underlying profit before tax	357	435	318	345	119	80	792	198
Underlying consolidated profit	260	333	252	255	91	61	593	152
Underlying attributable profit	254	327	246	249	84	54	582	139

United Kingdom (GBP mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net interest income	850	825	820	827	774	773	1 676 ,	1 546 ,
fee income Net	189	181	195	194	166	87	370	253
(losses) Gains financial transactions and other on	13	28	(4)	29	5	10	40	16
income Total	1 052 ,	1 034 ,	1 011 ,	1 050 ,	946	870	2 086 ,	1 815 ,
Operating expenses	(644)	(615)	(615)	(612)	(615)	(583)	(1 259) ,	(1 197) ,
operating income Net	407	419	396	437	331	287	826	618
Net loan-loss provisions	(53)	(17)	(68)	(83)	(164)	(211)	(70)	(376)
(losses) Other gains and provisions	(43)	(22)	(39)	(58)	(64)	(5)	(65)	(69)
Underlying profit before tax	311	380	288	296	102	71	691	173
Underlying consolidated profit	227	291	228	219	78	55	518	133
Underlying attributable profit	222	286	223	214	73	49	508	121

Portugal (EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
interest income Net	216	213	214	213	202	197	429	399
income Net fee	98	99	96	98	101	90	197	191
(losses) Gains financial transactions and other on	44	42	22	21	47	30	86	77
income Total	357	354	331	332	350	317	712	668
Operating expenses	(157)	(154)	(155)	(156)	(151)	(145)	(312)	(296)
operating income Net	200	200	176	175	199	172	400	372
Net loan-loss provisions	13	(1)	(0)	(4)	(80)	(24)	12	(105)
(losses) Other gains and provisions	(20)	(13)	2	21	(21)	(16)	(33)	(37)
Underlying profit before tax	193	186	178	192	98	132	379	230
Underlying consolidated profit	135	126	125	140	68	92	261	160
Underlying attributable profit	135	125	125	140	68	92	260	160

Poland (EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net interest income	281	284	298	307	296	251	565	547
fee income Net	113	117	119	117	116	104	230	220
(losses) Gains financial transactions and other on	(18)	39	24	34	(48)	23	22	(25)
income Total	377	440	442	459	365	377	817	742
Operating expenses	(173)	(176)	(175)	(169)	(172)	(143)	(349)	(315)
operating income Net	204	263	267	290	193	235	467	428
Net loan-loss provisions	(43)	(64)	(59)	(51)	(95)	(89)	(107)	(184)
(losses) Other gains and provisions	(34)	(34)	(24)	(34)	(36)	(40)	(68)	(76)
Underlying profit before tax	127	166	183	205	62	105	293	167
Underlying consolidated profit	89	130	139	153	32	74	219	106
Underlying attributable profit	61	89	95	104	23	51	150	73

Poland (PLN mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net interest income	1 209 ,	1 216 ,	1 288 ,	1 317 ,	1 279 ,	1 134 ,	2 425 ,	2 413 ,
fee income Net	488	499	514	504	503	467	987	970
(losses) Gains financial transactions and other on	(76)	168	104	147	(206)	95	92	(111)
income Total	1 622 ,	1 883 ,	1 906 ,	1 968 ,	1 576 ,	1 696 ,	3 505 ,	3 272 ,
Operating expenses	(745)	(755)	(754)	(726)	(742)	(645)	(1 500) ,	(1 387) ,
operating income Net	877	1 128 ,	1 152 ,	1 242 ,	834	1 051 ,	2 005 ,	1 886 ,
Net loan-loss provisions	(186)	(272)	(256)	(217)	(411)	(399)	(458)	(810)
(losses) Other gains and provisions	(145)	(146)	(106)	(147)	(155)	(181)	(291)	(337)
Underlying profit before tax	546	710	791	878	268	470	1 256 ,	738
Underlying consolidated profit	385	556	600	655	140	329	941	469
Underlying attributable profit	264	379	409	446	98	225	643	323

Other Europe (EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
interest income Net	139	159	166	155	134	155	299	289
Net fee income	62	56	52	63	74	115	118	189
(losses) Gains financial transactions and other on	60	(7)	(8)	68	(6)	(23)	53	(29)
Total income	261	209	211	286	202	246	469	448
Operating expenses	(200)	(208)	(205)	(219)	(216)	(217)	(408)	(433)
operating income Net	61	0	5	66	(14)	29	62	15
Net loan-loss provisions	(2)	(16)	(3)	(23)	(23)	(29)	(18)	(51)
(losses) Other gains and provisions	(7)	(4)	(7)	4	(4)	(7)	(11)	(12)
Underlying profit before tax	52	(19)	(5)	48	(41)	(7)	33	(48)
Underlying consolidated profit	33	(21)	(8)	27	(42)	18	13	(24)
Underlying attributable profit	32	(22)	(8)	26	(42)	17	10	(25)

Other Europe (Constant EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net interest income	140	160	167	155	134	155	299	289
Net fee income	62	57	53	63	74	115	119	189
(losses) Gains financial transactions and other on	61	(7)	(8)	68	(6)	(23)	54	(29)
income Total	263	210	211	286	202	246	472	448
Operating expenses	(201)	(209)	(206)	(220)	(216)	(217)	(410)	(433)
Net operating income	62	1	5	66	(14)	29	62	15
loan-loss provisions Net	(2)	(16)	(3)	(23)	(23)	(29)	(18)	(51)
(losses) Other gains and provisions	(7)	(4)	(7)	4	(4)	(7)	(11)	(12)
Underlying profit before tax	53	(19)	(5)	48	(41)	(7)	34	(48)
Underlying consolidated profit	34	(21)	(8)	27	(42)	18	13	(24)
Underlying attributable profit	32	(22)	(8)	26	(42)	17	10	(25)

NORTH AMERICA (EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net interest income	2 173 ,	2 230 ,	2 259 ,	2 265 ,	2 261 ,	2 079 ,	4 403 ,	4 339 ,
Net fee income	439	463	448	427	461	400	901	860
(losses) Gains financial transactions and other on	142	226	277	257	214	228	368	442
income Total	2 753 ,	2 918 ,	2 983 ,	2 949 ,	2 936 ,	2 706 ,	5 672 ,	5 642 ,
Operating expenses	(1 172) ,	(1 214) ,	(1 267) ,	(1 314) ,	(1 224) ,	(1 117) ,	(2 386) ,	(2 341) ,
Net operating income	1 581 ,	1 705 ,	1 716 ,	1 634 ,	1 712 ,	1 589 ,	3 286 ,	3 301 ,
loan-loss provisions Net	(804)	(793)	(1 009) ,	(1 050) ,	(1 246) ,	(1 123) ,	(1 597) ,	(2 368) ,
(losses) Other gains and provisions	(64)	(31)	(79)	(31)	(14)	(36)	(95)	(50)
Underlying profit before tax	713	881	628	554	452	430	1 594 ,	883
Underlying consolidated profit	526	664	481	422	336	371	1 189 ,	707
Underlying attributable profit	386	503	388	389	280	336	889	617

NORTH AMERICA (Constant EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net interest income	2 158 ,	2 189 ,	2 203 ,	2 193 ,	2 204 ,	2 135 ,	4 347 ,	4 339 ,
fee income Net	430	448	432	409	445	415	878	860
(losses) Gains financial transactions and other on	150	230	280	254	215	227	380	442
income Total	2 738 ,	2 868 ,	2 915 ,	2 855 ,	2 864 ,	2 778 ,	5 606 ,	5 642 ,
Operating expenses	(1 166) ,	(1 194) ,	(1 239) ,	(1 276) ,	(1 194) ,	(1 147) ,	(2 359) ,	(2 341) ,
operating income Net	1 572 ,	1 675 ,	1 676 ,	1 579 ,	1 670 ,	1 631 ,	3 246 ,	3 301 ,
Net loan-loss provisions	(808)	(784)	(999)	(1 034) ,	(1 227) ,	(1 142) ,	(1 592) ,	(2 368) ,
(losses) Other gains and provisions	(65)	(31)	(80)	(32)	(13)	(37)	(96)	(50)
Underlying profit before tax	698	860	597	514	430	453	1 558 ,	883
Underlying consolidated profit	513	647	457	390	319	388	1 160 ,	707
Underlying attributable profit	376	490	369	361	264	352	866	617

United States (EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
interest income Net	1 407 ,	1 453 ,	1 460 ,	449 1 ,	1 462 ,	429 1 ,	2 860 ,	891 2 ,
Net fee income	234	244	238	230	250	215	479	465
(losses) Gains financial transactions and other on	174	222	278	215	217	157	396	374
Total income	1 815 ,	1 920 ,	1 977 ,	1 894 ,	1 929 ,	1 801 ,	3 734 ,	3 730 ,
Operating expenses	(775)	(805)	(847)	(869)	(809)	(776)	(1 581) ,	(1 585) ,
operating income Net	1 039 ,	1 115 ,	1 130 ,	1 025 ,	1 120 ,	1 024 ,	2 154 ,	2 144 ,
Net loan-loss provisions	(611)	(568)	(786)	(828)	(972)	(832)	(1 178) ,	(1 804) ,
(losses) Other gains and provisions	(58)	(26)	(76)	(39)	(6)	(30)	(84)	(36)
Underlying profit before tax	370	521	267	158	141	163	891	305
Underlying consolidated profit	260	383	196	109	99	170	643	269
Underlying attributable profit	181	284	154	98	60	151	465	211

United States (USD mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net interest income	1 598 ,	1 633 ,	1 623 ,	1 604 ,	1 612 ,	1 573 ,	3 231 ,	3 185 ,
Net fee income	266	275	264	255	275	237	541	512
(losses) Gains financial transactions and other on	197	250	310	238	239	173	447	412
income Total	2 061 ,	2 158 ,	2 198 ,	2 096 ,	2 126 ,	1 983 ,	4 219 ,	4 109 ,
Operating expenses	(881)	(905)	(942)	(963)	(892)	(855)	(1 786) ,	(1 747) ,
Net operating income	1 180 ,	1 253 ,	1 256 ,	1 134 ,	1 235 ,	1 128 ,	2 433 ,	2 363 ,
provisions Net loan-loss	(694)	(637)	(876)	(918)	(1 072) ,	(916)	(1 331) ,	(1 988) ,
(losses) Other gains and provisions	(66)	(29)	(85)	(43)	(7)	(33)	(95)	(39)
Underlying profit before tax	420	586	295	172	156	180	1 007 ,	336
Underlying consolidated profit	295	431	216	118	109	188	726	296
Underlying attributable profit	206	319	170	107	66	166	525	232

Mexico (EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
interest income Net	766	777	798	816	798	650	1 543 ,	1 448 ,
Net fee income	204	218	210	197	211	185	423	396
(losses) Gains financial transactions and other on	(32)	4	(1)	42	(2)	70	(28)	68
Total income	939	999	1 007 ,	1 054 ,	1 007 ,	905	1 938 ,	1 912 ,
Operating expenses	(397)	(409)	(420)	(445)	(415)	(341)	(806)	(756)
operating income Net	542	590	586	609	592	565	1 132 ,	1 156 ,
Net loan-loss provisions	(193)	(225)	(223)	(222)	(273)	(291)	(419)	(564)
(losses) Other gains and provisions	(6)	(5)	(3)	8	(8)	(6)	(10)	(14)
Underlying profit before tax	343	360	361	395	311	267	703	578
Underlying consolidated profit	266	280	286	313	237	201	547	438
Underlying attributable profit	205	219	234	291	220	186	424	406

Mexico (MXN mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net	16	16	17	17	17	16	33	34
interest	703	694	231	393	484	706	397	190
income	,	,	,	,	,	,	,	,
fee	4	695	535	188	617	719	9	9
income	455	4	4	4	4	4	149	336
Net	,	,	,	,	,	,	,	,
(losses) Gains financial transactions and other on	(687)	83	(31)	906	(51)	1 658 ,	(604)	1 607 ,
income Total	20 471 ,	21 471 ,	21 735 ,	22 487 ,	22 049 ,	23 083 ,	41 942 ,	45 133 ,
Operating expenses	(8 655) ,	(8 786) ,	(9 076) ,	(9 501) ,	(9 088) ,	(8 749) ,	(17 441) ,	(17 837) ,
operating	11	12	12	12	12	14	24	27
income	816	685	659	987	962	334	501	296
Net	,	,	,	,	,	,	,	,
provisions	(4	(4	(4	(4	(5	(7	(9	(13
Net	211)	850)	813)	725)	985)	336)	062)	321)
loan-loss	,	,	,	,	,	,	,	,
(losses) Other gains and provisions	(120)	(105)	(59)	175	(167)	(166)	(225)	(333)
Underlying profit before tax	7 485 ,	7 729 ,	7 787 ,	8 437 ,	6 810 ,	6 832 ,	15 214 ,	13 642 ,
Underlying	804	6	6	6	191	149	11	10
consolidated	5	028	167	682	5	5	832	340
profit	,	,	,	,	,	,	,	,
Underlying	4	4	5	6	4	4	9	9
attributable	472	713	059	219	814	761	185	575
profit	,	,	,	,	,	,	,	,

SOUTH AMERICA (EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
interest income Net	3 222 ,	3 425 ,	3 314 ,	3 356 ,	3 065 ,	2 606 ,	6 647 ,	671 5 ,
income Net fee	1 178 ,	1 178 ,	1 204 ,	1 228 ,	1 074 ,	774	2 355 ,	1 847 ,
(losses) Gains financial transactions and other on	88	45	59	130	25	311	132	336
income Total	4 487 ,	4 647 ,	4 577 ,	4 714 ,	4 163 ,	3 690 ,	9 134 ,	7 854 ,
Operating expenses	(1 645) ,	(1 664) ,	(1 586) ,	(1 762) ,	(1 486) ,	(1 275) ,	(3 309) ,	(2 761) ,
operating income Net	2 842 ,	2 984 ,	2 991 ,	2 953 ,	2 677 ,	2 416 ,	5 825 ,	5 093 ,
Net loan-loss provisions	(903)	(956)	(916)	(1 015) ,	(1 325) ,	(1 110) ,	(1 859) ,	(2 435) ,
(losses) Other gains and provisions	(154)	(151)	(193)	(249)	(142)	(52)	(306)	(194)
Underlying profit before tax	1 785 ,	1 876 ,	1 882 ,	1 688 ,	1 211 ,	1 254 ,	3 661 ,	2 465 ,
Underlying consolidated profit	1 093 ,	1 205 ,	1 184 ,	1 107 ,	795	783	2 297 ,	1 578 ,
Underlying attributable profit	926	1 035 ,	1 016 ,	947	698	685	1 961 ,	1 383 ,

SOUTH AMERICA (Constant EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net interest income	2 561 ,	2 783 ,	2 850 ,	2 941 ,	2 837 ,	2 834 ,	344 5 ,	671 5 ,
fee income Net	925	950	1 041 ,	1 074 ,	989	858	1 875 ,	1 847 ,
(losses) Gains financial transactions and other on	73	47	50	112	24	312	120	336
income Total	3 559 ,	3 780 ,	3 941 ,	4 128 ,	3 850 ,	4 004 ,	7 339 ,	7 854 ,
Operating expenses	(1 291) ,	(1 337) ,	(1 399) ,	(1 553) ,	(1 375) ,	(1 385) ,	(2 628) ,	(2 761) ,
operating income Net	2 269 ,	2 443 ,	2 542 ,	2 575 ,	2 475 ,	2 619 ,	712 4 ,	093 5 ,
Net loan-loss provisions	(714)	(777)	(786)	(882)	(1 223) ,	(1 212) ,	(1 491) ,	(2 435) ,
(losses) Other gains and provisions	(117)	(126)	(161)	(213)	(129)	(65)	(243)	(194)
Underlying profit before tax	1 438 ,	1 540 ,	1 595 ,	1 479 ,	1 122 ,	1 343 ,	2 978 ,	2 465 ,
Underlying consolidated profit	885	990	1 005 ,	972	739	839	1 875 ,	1 578 ,
Underlying attributable profit	748	848	863	831	648	735	1 596 ,	1 383 ,

Brazil (EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
interest income Net	459 2 ,	2 520 ,	2 560 ,	2 534 ,	2 270 ,	1 813 ,	979 4 ,	4 083 ,
Net fee income	931	924	970	974	869	614	1 855 ,	1 483 ,
(losses) Gains financial transactions and other on	21	9	(7)	57	(3)	224	30	221
Total income	3 411 ,	3 453 ,	3 522 ,	3 565 ,	3 137 ,	2 651 ,	6 864 ,	788 5 ,
Operating expenses	(1 125) ,	(1 102) ,	(1 137) ,	(1 242) ,	(1 004) ,	(835)	(2 227) ,	(1 839) ,
operating income Net	2 286 ,	2 351 ,	2 385 ,	2 323 ,	2 133 ,	1 816 ,	4 637 ,	3 949 ,
Net loan-loss provisions	(710)	(761)	(753)	(813)	(1 066) ,	(843)	(1 471) ,	(1 909) ,
(losses) Other gains and provisions	(167)	(153)	(178)	(205)	(127)	(31)	(320)	(158)
Underlying profit before tax	1 409 ,	1 438 ,	1 454 ,	1 305 ,	940	942	2 846 ,	1 881 ,
Underlying consolidated profit	816	856	862	777	571	533	1 673 ,	1 105 ,
Underlying attributable profit	721	762	767	689	517	478	1 482 ,	995

Brazil (BRL mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
interest	10	11	11	11	11	10	21	21
income	516	095	272	534	100	725	611	825
Net	,	,	,	,	,	,	,	,
Net	3	4	4	4	4	3	8	7
fee	980	070	271	429	250	679	050	929
income	,	,	,	,	,	,	,	,
(losses) Gains financial transactions and other on	91	41	(31)	254	(14)	1 196 ,	132	1 182 ,
Total income	14 587 ,	15 206 ,	15 511 ,	16 216 ,	15 336 ,	15 600 ,	29 793 ,	30 936 ,
Operating expenses	(4 810) ,	(4 857) ,	(5 007) ,	(5 636) ,	(4 907) ,	(4 922) ,	(9 666) ,	(9 829) ,
operating	9	10	10	10	10	10	20	21
income	777	350	504	580	429	678	127	107
Net	,	,	,	,	,	,	,	,
Net	(3	(3	(3	(3	(5	(4	(6	(10
loan-loss	037)	347)	314)	690)	214)	990)	384)	205)
provisions	,	,	,	,	,	,	,	,
(losses) Other gains and provisions	(716)	(673)	(785)	(928)	(621)	(226)	(1 390) ,	(846)
Underlying profit before tax	6 024 ,	6 330 ,	6 405 ,	962 5 ,	594 4 ,	462 5 ,	12 354 ,	10 056 ,
Underlying	3	3	3	3	2	3	7	5
consolidated	491	769	795	546	794	111	261	904
profit	,	,	,	,	,	,	,	,
Underlying	3	3	3	3	2	2	6	5
attributable	082	353	376	147	526	792	435	318
profit	,	,	,	,	,	,	,	,

Chile (EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
interest income Net	440	500	462	464	448	425	940	873
income Net fee	103	97	102	102	92	74	200	166
(losses) Gains financial transactions and other on	56	59	82	71	12	85	115	98
income Total	600	656	646	638	553	584	1 255 ,	1 137 ,
Operating expenses	(255)	(269)	(260)	(246)	(230)	(228)	(524)	(458)
operating income Net	344	387	386	392	322	356	731	678
Net loan-loss provisions	(102)	(105)	(106)	(130)	(163)	(183)	(208)	(346)
(losses) Other gains and provisions	37	(1)	15	12	1	(2)	37	(1)
Underlying profit before tax	279	281	295	274	160	171	560	331
Underlying consolidated profit	219	237	234	229	138	129	456	267
Underlying attributable profit	148	163	162	157	97	86	311	183

Chile (CLP mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
interest	333	383	363	386	397	384	716	781
income	439	545	195	260	015	057	985	072
Net	,	,	,	,	,	,	,	,
Net	78	74	80	85	81	67	152	148
fee	010	473	052	052	770	170	483	940
income	,	,	,	,	,	,	,	,
(losses) Gains financial transactions and other on	42 713 ,	45 387 ,	63 719 ,	58 999 ,	10 853 ,	76 629 ,	88 100 ,	87 482 ,
Total income	454 162 ,	503 405 ,	506 966 ,	530 311 ,	489 638 ,	527 855 ,	957 567 ,	1 017 494 , ,
Operating expenses	(193 440) ,	(206 641) ,	(204 239) ,	(205 576) ,	(204 237) ,	(205 998) ,	(400 081) ,	(410 236) ,
operating	260	296	302	324	285	321	557	607
income	722	763	727	735	401	857	485	258
Net	,	,	,	,	,	,	,	,
Net	(77	(80	(83	(106	(144	(165	(158	(309
loan-loss	584)	828)	231)	535)	587)	302)	412)	889)
provisions	,	,	,	,	,	,	,	,
(losses) Other gains and provisions	28 393 ,	(417)	11 726 ,	10 140 ,	739	(1 905) ,	27 976 ,	(1 166) ,
Underlying profit before tax	211 531 ,	215 518 ,	231 222 ,	228 340 ,	141 553 ,	154 650 ,	427 049 ,	296 203 ,
Underlying	165	182	183	190	122	116	348	239
consolidated	949	169	336	253	619	749	119	369
profit	,	,	,	,	,	,	,	,
Underlying	112	125	126	130	86	77	237	163
attributable	355	176	756	587	013	918	531	931
profit	,	,	,	,	,	,	,	,

Argentina (EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net interest income	213	298	180	250	241	261	511	502
Net fee income	116	125	88	118	76	56	241	132
(losses) Gains financial transactions and other on	2	(33)	(31)	(8)	1	(8)	(31)	(6)
Total income	331	389	237	359	318	310	720	628
Operating expenses	(202)	(229)	(122)	(209)	(186)	(153)	(431)	(339)
operating income Net	129	161	115	150	132	157	289	289
Net loan-loss provisions	(73)	(70)	(39)	(53)	(75)	(57)	(143)	(132)
(losses) gains provisions Other and	(22)	3	(28)	(54)	(14)	(18)	(19)	(32)
Underlying profit before tax	34	94	47	43	44	82	127	125
Underlying consolidated profit	10	63	24	47	34	75	74	110
Underlying attributable profit	10	63	23	47	34	75	73	109

Argentina (ARS mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net	10	14	18	19	16	22	24	39
interest	117	548	638	924	991	846	665	837
income	,	,	,	,	,	,	,	,
fee	486	6	8	9	327	132	11	10
income	5	131	976	403	5	5	616	459
Net	,	,	,	,	,	,	,	,
(losses) Gains financial transactions and other on	102	(1 596) ,	(2 372) ,	(847)	89	(595)	(1 494) ,	(506)
income Total	15 704 ,	19 083 ,	25 243 ,	28 480 ,	22 407 ,	27 384 ,	34 787 ,	49 790 ,
Operating expenses	(9 602) ,	(11 210) ,	(13 861) ,	(16 583) ,	(13 112) ,	(13 756) ,	(20 812) ,	(26 867) ,
operating	6	872	11	11	9	13	13	22
income	102	7	382	897	295	628	975	923
Net	,	,	,	,	,	,	,	,
provisions	(3	(3	(4	(4	(5	(5	(6	(10
Net	441)	459)	538)	391)	266)	207)	900)	473)
loan-loss	,	,	,	,	,	,	,	,
(losses) Other gains and provisions	(1 067) ,	131	(2 040) ,	(3 831) ,	(953)	(1 546) ,	(936)	(2 499) ,
Underlying profit before tax	1 594 ,	4 544 ,	4 805 ,	3 674 ,	3 076 ,	6 875 ,	6 138 ,	9 951 ,
Underlying	497	3	2	3	2	6	3	8
consolidated		056	574	636	421	276	553	697
profit		,	,	,	,	,	,	,
Underlying	490	3	2	3	2	6	3	8
attributable		043	519	600	405	234	534	639
profit		,	,	,	,	,	,	,

Other South America (EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net interest income	109	108	112	108	106	107	217	213
fee income Net	29	32	44	34	37	29	60	65
(losses) Gains financial transactions and other on	8	9	16	10	14	9	17	24
income Total	146	149	172	153	157	145	295	301
Operating expenses	(63)	(64)	(67)	(64)	(66)	(59)	(127)	(125)
operating income Net	83	85	105	88	91	86	168	177
Net loan-loss provisions	(18)	(20)	(18)	(20)	(21)	(27)	(38)	(47)
(losses) Other gains and provisions	(2)	(1)	(2)	(2)	(2)	(1)	(3)	(3)
Underlying profit before tax	63	64	86	66	68	59	128	127
Underlying consolidated profit	47	48	64	54	51	46	95	96
Underlying attributable profit	47	47	64	54	51	46	94	96

Other South America (Constant EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net interest income	93	96	100	101	102	110	189	213
fee income Net	24	28	40	32	35	30	52	65
(losses) Gains financial transactions and other on	7	9	14	10	14	10	16	24
income Total	125	132	154	142	151	150	257	301
Operating expenses	(54)	(56)	(60)	(60)	(64)	(61)	(110)	(125)
operating income Net	71	76	95	82	87	89	147	177
Net loan-loss provisions	(15)	(17)	(15)	(18)	(20)	(28)	(33)	(47)
(losses) Other gains and provisions	(1)	(1)	(2)	(2)	(2)	(1)	(2)	(3)
Underlying profit before tax	55	58	78	62	66	61	112	127
Underlying consolidated profit	40	43	58	50	49	47	83	96
Underlying attributable profit	40	42	58	51	49	47	82	96

SANTANDER GLOBAL PLATFORM primary segment (EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net interest income	22	23	23	23	31	32	46	63
Net fee income	2	1	2	2	13	18	2	31
(losses) Gains financial transactions and other on	(5)	(4)	(1)	(7)	1	(6)	(9)	(5)
Total income	19	20	24	18	45	44	39	89
Operating expenses	(41)	(67)	(60)	(72)	(71)	(77)	(108)	(148)
operating income Net	(22)	(47)	(36)	(54)	(26)	(33)	(69)	(59)
loan-loss provisions Net	(0)	(0)	(0)	(0)	(0)	(1)	(0)	(1)
(losses) gains provisions Other and	(1)	(0)	(1)	(4)	(1)	(6)	(1)	(7)
Underlying profit before tax	(23)	(47)	(37)	(58)	(27)	(40)	(70)	(67)
Underlying consolidated profit	(11)	(40)	(26)	(43)	(13)	(28)	(51)	(42)
Underlying attributable profit	(11)	(40)	(26)	(43)	(13)	(28)	(51)	(41)

CORPORATE CENTRE (EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net interest income	(296)	(304)	(319)	(333)	(304)	(354)	(600)	(658)
Net fee income	(14)	(13)	(9)	(15)	(9)	(6)	(27)	(15)
(losses) Gains financial transactions and other on	(90)	(106)	(85)	(34)	9	47	(196)	56
Total income	(399)	(423)	(413)	(381)	(304)	(313)	(822)	(617)
Operating expenses	(97)	(96)	(90)	(89)	(85)	(82)	(193)	(166)
operating income Net	(497)	(519)	(504)	(471)	(389)	(395)	(1 015) ,	(784)
Net loan-loss provisions	(8)	(5)	(14)	(10)	(3)	(8)	(13)	(11)
(losses) Other gains and provisions	(55)	(72)	(61)	(49)	(20)	(370)	(127)	(391)
Underlying profit before tax	(559)	(595)	(579)	(529)	(413)	(773)	(1 155) ,	(1 186) ,
Underlying consolidated profit	(526)	(592)	(529)	(458)	(937)	(188)	(1 118) ,	(1 125) ,
Underlying attributable profit	(517)	(592)	(529)	(459)	(1 031) ,	(94)	(1 108) ,	(1 125) ,

RETAIL BANKING (EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
interest income Net	8 083 ,	8 323 ,	8 227 ,	8 229 ,	885 7 ,	141 7 ,	16 406 ,	15 026 ,
income Net fee	2 178 ,	2 134 ,	2 108 ,	2 141 ,	2 024 ,	1 495 ,	4 312 ,	3 518 ,
(losses) Gains financial transactions and other on	150	201	485	339	63	224	351	287
income Total	10 412 ,	10 658 ,	10 819 ,	10 710 ,	9 972 ,	8 859 ,	21 070 ,	18 831 ,
Operating expenses	(4 694) ,	(4 747) ,	(4 658) ,	(4 827) ,	(4 526) ,	(4 084) ,	(9 441) ,	(8 611) ,
operating income Net	5 718 ,	5 911 ,	6 161 ,	5 882 ,	5 445 ,	4 775 ,	11 629 ,	10 220 ,
Net loan-loss provisions	(2 143) ,	(2 090) ,	(2 428) ,	(2 439) ,	(3 889) ,	(2 846) ,	(4 234) ,	(6 735) ,
(losses) Other gains and provisions	(391)	(397)	(377)	(454)	(338)	(218)	(788)	(555)
Underlying profit before tax	3 184 ,	3 423 ,	3 357 ,	2 989 ,	1 218 ,	1 711 ,	6 607 ,	2 930 ,
Underlying consolidated profit	2 119 ,	2 377 ,	2 286 ,	2 122 ,	802	1 175 ,	4 497 ,	1 977 ,
Underlying attributable profit	1 763 ,	2 000 ,	1 958 ,	1 858 ,	634	982	3 763 ,	1 616 ,

RETAIL BANKING (Constant EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net	7	7	7	7	7	7	15	15
interest	458	693	747	750	606	419	150	026
income	,	,	,	,	,	,	,	,
Net	1	1	1	2	1	1	3	3
fee	973	947	978	002	943	575	921	518
income	,	,	,	,	,	,	,	,
(losses) Gains financial transactions and other on	192	242	491	343	81	206	434	287
Total income	9 622 ,	9 882 ,	10 216 ,	10 094 ,	9 630 ,	9 200 ,	19 504 ,	18 831 ,
Operating expenses	(4 375) ,	(4 439) ,	(4 486) ,	(4 595) ,	(4 392) ,	(4 219) ,	(8 814) ,	(8 611) ,
operating	5	5	5	5	5	4	10	10
income	248	443	730	499	238	982	691	220
Net	,	,	,	,	,	,	,	,
loan-loss	(1	(1	(2	(2	(3	(2	(3	(6
provisions	955)	906)	279)	291)	763)	972)	861)	735)
Net	,	,	,	,	,	,	,	,
(losses) gains provisions Other and	(355)	(371)	(346)	(419)	(323)	(233)	(726)	(555)
Underlying profit before tax	2 938 ,	3 166 ,	3 105 ,	2 790 ,	1 153 ,	1 777 ,	6 104 ,	2 930 ,
Underlying	1	2	2	1	761	1	4	1
consolidated	979	214	130	990		216	194	977
profit	,	,	,	,		,	,	,
Underlying	1	1	1	1	596	1	3	1
attributable	647	861	825	743		020	508	616
profit	,	,	,	,		,	,	,

CORPORATE & INVESTMENT BANKING (EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net interest income	654	700	657	716	671	713	1 354 ,	1 384 ,
Net fee income	352	374	421	373	404	406	726	810
(losses) Gains financial transactions and other on	272	217	153	337	225	307	489	532
Total income	1 278 ,	1 292 ,	1 232 ,	1 426 ,	1 300 ,	1 426 ,	2 569 ,	2 726 ,
Operating expenses	(561)	(560)	(552)	(608)	(536)	(507)	(1 121) ,	(1 043) ,
operating income Net	717	731	679	818	764	919	1 448 ,	1 683 ,
Net loan-loss provisions	(10)	(45)	27	(128)	(4)	(245)	(54)	(249)
(losses) Other gains and provisions	(22)	(16)	(21)	(32)	(15)	(28)	(38)	(43)
Underlying profit before tax	686	670	685	658	745	646	1 356 ,	1 391 ,
Underlying consolidated profit	484	466	486	449	527	467	950	994
Underlying attributable profit	441	419	443	410	491	437	860	928

CORPORATE & INVESTMENT BANKING (Constant EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net interest income	596	638	636	681	646	738	1 234 ,	1 384 ,
Net fee income	326	347	397	356	392	419	673	810
(losses) Gains financial transactions and other on	235	193	150	322	213	319	428	532
Total income	1 157 ,	1 179 ,	1 183 ,	1 359 ,	1 251 ,	1 475 ,	2 336 ,	2 726 ,
Operating expenses	(529)	(530)	(537)	(588)	(523)	(521)	(1 059) ,	(1 043) ,
operating income Net	629	648	646	770	729	954	1 277 ,	1 683 ,
loan-loss provisions Net	(9)	(44)	22	(124)	(4)	(245)	(53)	(249)
(losses) gains provisions Other and	(21)	(15)	(21)	(30)	(15)	(28)	(36)	(43)
Underlying profit before tax	599	589	647	617	710	681	1 188 ,	1 391 ,
Underlying consolidated profit	424	411	460	421	503	491	834	994
Underlying attributable profit	388	369	422	386	469	459	757	928

WEALTH MANAGEMENT & INSURANCE (EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net interest income	141	143	141	146	132	104	284	236
fee income Net	273	298	298	330	320	279	571	599
(losses) Gains financial transactions and other on	110	121	113	114	134	100	231	234
income Total	523	562	551	589	586	482	1 085 ,	1 069 ,
Operating expenses	(242)	(236)	(234)	(244)	(244)	(220)	(477)	(464)
operating income Net	282	327	318	345	342	263	608	605
Net loan-loss provisions	7	(1)	(4)	21	(7)	(5)	6	(12)
(losses) Other gains and provisions	(3)	(1)	(3)	(5)	(1)	(3)	(4)	(4)
Underlying profit before tax	285	325	310	361	334	255	610	589
Underlying consolidated profit	218	249	240	272	252	195	467	447
Underlying attributable profit	208	237	227	257	240	186	444	427

WEALTH MANAGEMENT & INSURANCE (Constant EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net interest income	135	137	141	142	130	107	272	236
fee income Net	261	285	288	316	313	285	545	599
(losses) Gains financial transactions and other on	102	112	105	105	130	104	214	234
income Total	497	534	534	564	573	496	1 031 ,	1 069 ,
Operating expenses	(235)	(229)	(229)	(238)	(240)	(224)	(464)	(464)
operating income Net	262	305	305	326	332	272	567	605
Net loan-loss provisions	7	(1)	(4)	21	(7)	(5)	6	(12)
(losses) Other gains and provisions	(3)	(1)	(3)	(5)	(1)	(3)	(4)	(4)
Underlying profit before tax	266	303	297	343	324	264	569	589
Underlying consolidated profit	203	232	229	256	244	203	435	447
Underlying attributable profit	194	222	218	244	233	193	416	427

SANTANDER GLOBAL PLATFORM secondary segment(EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net interest income	100	92	100	83	103	112	192	214
fee income Net	142	139	137	132	115	109	280	224
(losses) Gains financial transactions and other on	30	32	40	34	43	29	62	72
income Total	271	263	277	249	260	250	534	510
Operating expenses	(165)	(191)	(188)	(202)	(186)	(183)	(355)	(369)
operating income Net	107	72	89	47	74	67	179	141
provisions Net loan-loss	(18)	(0)	(16)	(17)	(5)	(14)	(18)	(20)
(losses) Other gains and provisions	(1)	0	(2)	(2)	2	(6)	(1)	(4)
Underlying profit before tax	88	72	71	28	71	46	160	117
Underlying consolidated profit	63	41	46	13	52	28	104	80
Underlying attributable profit	52	33	36	6	43	20	85	63

SANTANDER GLOBAL PLATFORM secondary segment(Constant EUR mn)

	Q1'19	Q2'19	Q3'19	Q4'19	Q1'20	Q2'20	H1'19	H1'20
Net interest income	89	84	92	79	99	115	172	214
Net fee income	120	120	126	122	109	115	240	224
(losses) Gains financial transactions and other on	28	30	39	33	42	30	57	72
Total income	236	233	257	234	250	260	469	510
Operating expenses	(149)	(177)	(180)	(194)	(181)	(188)	(326)	(369)
operating income Net	87	56	77	40	69	72	143	141
Net loan-loss provisions	(17)	0	(16)	(16)	(5)	(15)	(17)	(20)
(losses) Other gains and provisions	(1)	0	(2)	(3)	2	(6)	(1)	(4)
Underlying profit before tax	69	57	59	21	66	51	126	117
Underlying consolidated profit	51	32	39	9	49	32	83	80
Underlying attributable profit	42	23	30	3	40	23	65	63

Appendix

Primary segments

Secondary segments

Other countries. Detail

Balance sheet and capital management

Yield on loans and cost of deposits

NPL and coverage ratios and cost of credit

Responsible Banking

Quarterly income statements

Glossary

Glossary - Acronyms

❑ AuM: Assets under Management
❑ BFG: Deposit Guarantee Fund in Poland
❑ bn: Billion
❑ CET1: Common equity tier 1
❑ C&I: Commercial and Industrial
❑ CIB: Corporate & Investment Bank
❑ COVID-19: Coronavirus Disease 19
❑ DGF: Deposit guarantee fund
❑ GDP: Gross domestic product
❑ HQLA: High quality liquid asset
❑ FL: Fully-loaded
❑ FX: Foreign exchange
❑ EPS: Earning per share
❑ ESG: Environmental, social and governance
❑ LTV: Loan to Value
❑ LLPs: Loan-loss provisions
❑ M/LT: Medium- and long-term
❑ mn: million
❑ MXN: Mexican Pesos
❑ n.a.: Not available
❑ NII: Net interest income
❑ NIM: Net interest margin
❑ n.m.: Not meaningful
❑ NPL: Non-performing loans
❑ PBT: Profit before tax
❑ P&L: Profit and loss
❑ PPP: Pre-provision profit
❑ QoQ: Quarter-on-Quarter
❑ RE: Real Estate
❑ Repos: Repurchase agreements
❑ ROF: Gains on financial transactions
❑ RoRWA: Return on risk-weighted assets
❑ RoTE: Return on tangible equity
❑ RWA: Risk-weighted assets
❑ SBNA: Santander Bank NA
❑ SCF: Santander Consumer Finance
❑ SC USA: Santander Consumer USA
❑ SME: Small and Medium Enterprises
❑ SRF: Single Resolution Fund
❑ ST: Short term
❑ SVR: Standard variable rate
❑ TDR: Troubled debt restructuring
❑ TLAC: Total loss absorbing capacity
❑ TNAV: Tangible net asset value
❑ UF: Unidad de fomento (Chile)
❑ YoY: Year-on-Year
❑ UX: User experience

Glossary - Definitions

PROFITABILITY AND EFFICIENCY

✓ RoTE: Return on tangible capital: Group attributable profit / average of: net equity (excluding minority interests) intangible assets (including goodwill)
✓ RoRWA: Return on risk-weighted assets: consolidated profit / average risk-weighted assets
✓ Efficiency: Operating expenses / gross income. Operating expenses defined as general administrative expenses + amortisations

CREDIT RISK

✓ NPL ratio: Non-performing loans and customer advances, customer guarantees and contingent liabilities / total risk. Total risk is defined as: normal and nonperforming balances of customer loans and advances, customer guarantees and contingent liabilities
✓ NPL coverage ratio: Provisions to cover losses due to impairment of customer loans and advances, customer guarantees and contingent liabilities / nonperforming balances of customer loans and advances, customer guarantees and contingent liabilities
✓ Cost of credit: Provisions to cover losses due to impairment of loans in the last 12 months / average customer loans and advances of the last 12 months

CAPITALISATION

✓ Tangible net asset value per share – TNAVps: Tangible stockholders' equity / number of shares (excluding treasury shares). Tangible stockholders' equity calculated as shareholders equity + accumulated other comprehensive income - intangible assets

Notes: 1) The averages for the RoTE and RoRWA denominators are calculated on the basis of 7 months from December to June.

2) For periods of less than a year, and in the event of non-recurring results existing, the profit used to calculate the RoTE is the annualised underlying attributable profit (excluding non-recurring results), to which are added non-recurring results without annualising them.

3) For periods of less than a year, and in the event of non-recurring results existing, the profit used to calculate the RoRWA is the annualised underlying consolidated result (excluding non-recurring results), to which is added non-recurring results without annualising them.

4) The risk-weighted assets included in the RoRWA denominator are calculated in accordance with the criteria defined by the Capital Requirements Regulation (CRR).

Our purpose is to help people and businesses prosper.

Our culture is based on believing that everything we do should be:

AI assistant

Banco Santander S.A. — Earnings Release 2020

1798_rns_2020-07-29_83b1c342-901f-41e4-a86a-0ce672c4fa20.pdf

H1'20 Earnings Presentation

Important information

Non-IFRS and alternative performance measures

Forward-looking statements

Important information

No offer

Historical performance is not indicative of future results

Third Party Information

Highlights

We delivered strong net operating income performance (+2% in constant euros), though profit affected by COVID-19 related provisions

Net capital gains and provisions

H1'20

Capital ratios reinforced with Group CET1 of 11.84%, at the top end of our 11-12% target, after strong organic capital generation in the quarter

Group Performance

Group business activity

In the latter part of the quarter, we gradually began to return to pre-COVID activity as lockdowns were lifted…

% Branches open

Nearly full operational activity in our:

… which is reflected in signs of normalisation in new retail lending in recent weeks, particularly in Europe…

New SME and Corporates lending1

CIB change stock of loans

As a result, in June, the Group's new lending was similar to pre-COVID levels

The stock of retail loans has remained stable while SME, corporate and CIB balances have increased

SMEs and Corporates )

Group Performance

Group earnings

In results, resilientrevenue driven by our strong customer relationships…

NII affected by non-business related impacts and lower interest rates. NII from recurring business increased 4% in constant euros

Fees affected by lower customer transactions but beginning to recover as activity increases

Cost reductions are ahead of plan as we capture incremental cost efficiencies

Estimated year-end cost of credit of 1.4-1.5% with credit quality supported by mitigation measures and volume increases

Credit quality ratios

Close to 80% of our moratoria is granted to individuals, o/w c. 90% secured

Performance of current expired moratoria, aligned with 2020 forecasted losses

Maturity profile of loans subject to moratoria

By 15 July, in total >EUR 40 bn had already expired with similar credit quality

Group net operating income growth supported by our geographic and business diversification

VOLUMES1

VOLUMES1

VOLUMES1

VOLUMES1

VOLUMES2

VOLUMES1

Corporate Centre

In the first half, we have grown our net operating income by 2% and CET1 to 11.84%, at the top end of our 11-12% target range

Our net operating income forecast is consistent with our Investor Day RoTE target of 13-15%

Appendix

Primary segments

Europe

North America

South America

Appendix

Secondary segments

Retail Banking

SCIB Corporate & Investment Banking

SGP SGP continued deploying global payments solutions for SMEs and individuals, incorporating new services and functionalities on schedule

Appendix

Other countries. Detail

VOLUMES1

VOLUMES2

VOLUMES1

Note: Underlying RoTE

VOLUMES1

Appendix

Balance sheet and capital management

Santander has a highly liquid balance sheet with a large contribution from customer deposits and diversified MLT wholesale debt instruments

In the year to date, the Group has issued EUR 26 bn1 of MLT debt and is able to cover its very manageable maturity profile

We actively manage interest rate risk and our ALCO portfolios to optimise results while maintaining an appropriate risk profile

Positive interest rate sensitivity in Europe ALCO portfolios reflect our geographic diversification

Issuances YTD against funding plan

2020 Funding plan and issuances

Regulatory changes in the last quarter, and increased capital levels, increased the Group's CET1 management buffer to 298 bps

TLAC ratios for the Resolution Group headed by Banco Santander, S.A.

TLAC Ratio

Appendix

Yield on loans and cost of deposits

Yield on loans (%)

Banco Santander S.A. Earnings Release 2020

New SME and Corporates lending¹

VOLUMES¹

VOLUMES¹

VOLUMES¹

VOLUMES¹

VOLUMES²

VOLUMES¹

VOLUMES¹

VOLUMES²

VOLUMES¹

VOLUMES¹

In the year to date, the Group has issued EUR 26 bn¹ of MLT debt and is able to cover its very manageable maturity profile