Banco Santander S.A. — Earnings Release 2021

Apr 28, 2021

28 April 2021

Q1'21 Earnings Presentation

All. Together. Now.

Important information

Non-IFRS and alternative performance measures

This presentation contains, in addition to the financial information prepared in accordance with International Financial Reporting Standards ("IFRS") and derived from our financial statements, 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"). These financial measures that qualify as APMs and non-IFRS measures have been calculated with information from Santander Group; however those financial measures are not defined or detailed in the applicable financial reporting framework nor have been audited or 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 our management and investors to compare operating performance between accounting periods, 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 2020. Nonetheless, these APMs and non-IFRS measures should be considered supplemental information to, and are not meant to substitute IFRS measures. Furthermore, companies in our industry and others may calculate or use APMs and non-IFRS measures differently, thus making them less useful for comparison purposes. For further details on APMs and Non-IFRS Measures, 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 2020 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on 26 February 2021, as well as the section "Alternative performance measures" of the annex to the Banco Santander, S.A. ("Santander") Q1 2021 Financial Report, published as Inside Information on 28 April 2021. 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 advises that this presentation contains "forward-looking statements" as per the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements may be identified by words like "expect", "project", "anticipate", "should", "intend", "probability", "risk", "VaR", "RoRAC", "RoRWA", "TNAV", "target", "goal", "objective", "estimate", "future" and similar expressions. Found throughout this presentation, they include (but are not limited to) statements on our future business development, economic performance and shareholder remuneration policy. However, a number of risks, uncertainties and other important factors may cause actual developments and results to differ materially from our expectations. The following important factors, in addition to others discussed elsewhere in this presentation, could affect our future results and could cause materially different outcomes from those anticipated in forward-looking statements: (1) general economic or industry conditions of areas where we have significant operations or investments (such as a worse economic environment; higher volatility in 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 market risks (particularly interest rate risk, foreign exchange rate risk, equity price risk and risks associated with the replacement of benchmark indices); (3) potential losses from early repayments on our loan and investment portfolio, declines in value of collateral securing our loan portfolio, and counterparty risk; (4) political stability in Spain, the United Kingdom, other European countries, Latin America and the US (5) changes in legislation, regulations, taxes, including regulatory capital and liquidity requirements, especially in view of the UK exit of the European Union and increased regulation in response to financial crisis; (6) our ability to integrate successfully our acquisitions and related challenges that result from the inherent diversion of management's focus and resources from other strategic opportunities and operational matters; and (7) changes in our access to liquidity and funding on acceptable terms, in particular if resulting from credit spreads shifts or downgrade in credit ratings for the entire group or significant subsidiaries.

Important information

Numerous factors could affect our future results and could cause those results deviating 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 informed by the knowledge, information and views available on such date. Santander is not required to update or revise any forward-looking statements, regardless 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 about historical performance or accretion must not be construed to indicate that future performance, share price or future (including earnings per share) in any future period will necessarily match or exceed those of any prior period. Nothing in this presentation should be taken 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 document, and in case of any deviation between such a version and this one, Santander assumes no liability for any discrepancy.

Highlights

Growth

• Net operating income up 15% YoY driven by 8% revenue growth (volume up: +2% loans, +8% deposits) and cost control
• Strong digital adoption: 50% of sales through digital channels in Q1'21 (41% in Q1'20) and 44 million digital customers (+15% YoY)
• We announced the intention to make a cash offer to repurchase the outstanding shares of Santander México (c. 8.3%), consistent with the Group's strategy to deploy capital in high growth markets

• Q1'21 attributable profit of EUR 1,608 mn after recording EUR 530 mn (net of tax) in expected restructuring charges for FY21
• Q1'21 underlying attributable profit of EUR 2,138 mn. Revenue growth (+8%) with flat costs improved our efficiency ratio to 45%. Additionally, the lowest quarterly LLPs since Q1'20
• Increased profitability: underlying RoTE of 13.0% (7.4% FY20); underlying EPS of EUR 11.6 cents (EUR 1.4 cents in Q1'20)

• Cost of credit¹ improved to 1.08% vs. 1.28% FY20. Loan-loss reserves stood at EUR 24bn, with a coverage ratio of 74%
• CET1 ratio of 12.30% with continued organic generation (+28 bps, including -15 bps for shareholder remuneration, equivalent to 40% of Q1'21 underlying profit² )
• TNAVps: EUR 3.84 (+2% vs. Q4'20, including the dividend of EUR 2.75 cents per share, already deducted)

Delivered very positive performance in Q1'21

Note: Changes in constant euros

• (1) 12 month rolling. Considering annualized 3M'21 provisions, cost of credit would be 0.84% in Q1'21 (1.62% in Q1'20)
• (2) The bank is accruing 40% of the underlying profit for shareholder remuneration, once supervisors allow

Activity in Q1'21 recovering at different speeds affected by the operating and financial environment

Interest-rates. Monetary policy Fiscal stimulus programmes	• Low interest rates. Brazil started to raise interest rates in Q1'21 • New sizable fiscal stimulus in the US (relaunched Paycheck Protection Program) • Guarantee programmes extended	• Negative impact on NII • This stimulus will lead to activity and revenue recovery, with better credit quality in the US • Negative impact on revenue and support cost of credit
Lockdown / restrictive measures	• The UK published a roadmap to exit lockdown from March • Gradual easing of restrictions in the US Lockdowns and restrictive measures introduced in other countries •	Reduced activity slowed new lending and • fee income generation
Vaccination	Different progress by countries: • The US and the UK lead among major economies • EU: slow rollout; plan to accelerate in the next few months Brazil and Mexico are slowly accelerating •	• Recovery of activity at different speeds • Positive impact on revenue and cost of credit

Group Performance

7

Q1 underlying profit of EUR 2 billion driven by solid net operating income growth (+15%¹ YoY) and lower cost of credit

			% change
EUR mn	Q1'21	Q1'20	Euros	Constant euros
NII	7,956	8,487	-6	5
Net fee income	2,548	2,853	-11	0
Trading and other income	886	474	87	95
Total income	11,390	11,814	-4	8
Operating expenses	-5,118	-5,577	-8	0
Net operating income	6,272	6,237	1	15
LLPs	-1,992	-3,909	-49	-43
Other results	-467	-372	26	42
Underlying PBT	3,813	1,956	95	133
Underlying att. profit	2,138	377	467	—
Restructuring charges²	-530	-46	—	—
Attributable profit	1,608	331	386	998

(1) Changes in constant euros. Contribution as a % of operating areas and excluding the Corporate Centre (2) Net of tax, corresponding mainly to the UK and Portugal

Strong performance in revenue, costs and LLPs in the quarter

NII was 5% higher YoY in line with increase in average volumes

• YoY growth in loans (+2%) and deposits (+8%)
• Interest rates remained much lower YoY, despite the recent hike in Brazil (+75 bps)
• Positive impact of cost of deposits management and TLTRO contribution
• QoQ performance affected by seasonality

Net fee income recovered to pre-pandemic levels, growing in higher value-added services and products

Net fee income Constant EUR mn 2,543 2,208 2,399 2,460 2,548 Q1'20 Q2 Q3 Q4 Q1'21 +0.2% +4% vs. Q4'20

• vs. Q1'20 Q1 affected by new lockdowns and seasonality in Brazil
  • Positive YoY performance in CIB (+28%) and Insurance (+5%)
  • Cards and transactional fees dampened by the pandemic (Q1'20 impact was not material) and overdraft regulation in the UK (since April 2020)
  • QoQ positive performance in CIB and, to a lower extent, in WM&I. Transactional fees began to recover

Delivered broad-based efficiency gains with cost savings in all European countries fueled by our new operating model

Note: Percentage change year-on-year in constant euros. Efficiency YoY change in euros (1) Excluding Argentina due to high inflation. Including it, South America: +4.9%

Improved cost of credit: lower LLPs in most countries, particularly in the US and Brazil

(1) Provisions to cover losses due to impairment of loans in the last 12 months / average customer loans and advances of the last 12 months. Considering annualized 3M'21 provisions, cost of credit would be 0.84% in Q1'21 (1.62% in Q1'20)

Our strong operating performance resulted in increased profitability and TNAVps…

Notes: The averages for the Q1 RoTE denominators are calculated on the basis of 4 months from December to March and 2020 RoTE denominator is calculated on the basis of 13 months from December to December

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

…and high organic generation which enabled us to maintain our solid capital position

Note: Does not include repurchase of Santander México shares, which is expected to close in Q2 or Q3'21 (1) Includes -15 bps for shareholder remuneration, equivalent to 40% of Q1'21 underlying profit (2) IFRS 9 2021 phase-out included (-6 bps)

Business and profit growth leveraging our geographic diversification

Q1'21 (vs. Q1'20)	Digital customers (mn)	Customer loans (EUR bn)	Customer deposits (EUR bn)	Net operating income (EUR mn)	Underlying att. profit (EUR mn)	Underlying RoTE
Europe	15.6	558	576	2,077	826	8%
	+9%	+2%	+7%	+36%	+338%	+6.6 pp
North	6.3	123	105	1,620	773	14%2
America	+13%	-1%1	+9%1	+4%	+205%	+9.0 pp
South	21.6	120	103	2,320	773	19%
America	+21%	+10%	+17%	+12%	+41%	+3.4 pp
Digital Consumer DCB Bank	0.7 +26%	116 -1%	53 +7%	703 +1%	291 +25%	12% +2.4 pp

Note: YoY changes in constant euros. Loans and advances to customers excluding reverse repos. Customer deposits excluding repos

(1) Excluding Puerto Rico and Bluestem disposal impact. Otherwise, loans -4% and deposits +5%

Q1'21 profit boosted by the increase in net operating income and reduced LLPs

Hefty cost reduction and productivity increase

Total income flat YoY: increased NII (volumes and TLTRO), offset by reduced fee income (Q1'20 pre-pandemic) and lower ALCO sales

NII QoQ performance affected by margin pressure, lower credit volumes and lower day count

KEY DATA	Q1'21	Q1'20 vs.
(mn) Digital customers	3 5	+9%
(%) NPL ratio	6 18	-70 bps
(%) Cost of credit	0 91	+27 bps
(%) Efficiency ratio	48 6	-423 bps
(%) Underlying RoTE	6 5	+4 2 pp

Underlying . profit att	243	—	170 4
PBT	340	—	203 2
LLPs	-449	-26 5	-28 6
operating income Net	918	20 9	8 7
Operating expenses	-867	-0 7	-8 2	197
Total income	1 785 ,	9 3	-0 2
Net fee income	587	2 4	-8 7	+3%
NII	1 019 ,	-4 5	10 2
P&L*	Q1'21	Q4'20 vs.	Q1'20 vs.	VOLUMES

(*) EUR mn and % change

Volume growth driven by mortgages, government backed business loans and both retail banking and corporate deposits

In the quarter, positive margin management was not reflected in NII performance due to the lower day count

Profit increased QoQ from lower LLPs and the UK Bank Levy in Q4

Profit up YoY due to total income growth (volumes and cost of deposits), cost reduction and significantly lower LLPs. Fees impacted by regulatory changes

(mn) Digital customers	6 4	+7%
(%) NPL ratio	1 35	+36 bps
(%) Cost of credit	0 21	bps +7
(%) Efficiency ratio	58 7	-947 bps
(%) Underlying RoTE	9 2	+7 7 pp

UK

(%) Underlying RoTE	9 2	+7 7 pp	Underlying . profit att	294	67 8	470 4
			Underlying PBT	410	99 8	476 9
(%) Efficiency ratio	58 7	-947 bps	LLPs	-18	-82 1	-89 6
			operating income Net	459	-0 2	45 2
(%) Cost of credit	0 21	+7 bps	Operating expenses	-652	4 9	-3 6
(%) NPL ratio	1 35	+36 bps	Total income	1 111 ,	2 7	11 9
			Net fee income	120	20 4	-35 7
(mn) Digital customers	6 4	+7%	NII	1 001 ,	-1 3	23 7
DATA KEY	Q1'21	Q1'20 vs.	P&L*	Q1'21	Q4'20 vs.	Q1'20 vs.	1 VOLUMES

Maintained our growth strategy, reflected in double-digit growth in digital customers and volumes

Continued improvement of operational efficiency, reaching historic lows

Profit increased YoY: revenue up (higher volumes partly offset by lower interest rates), costs control and lower LLPs. Higher RoTE at 21%

QoQ performance affected by seasonality in fee income and expenses

KEY DATA	Q1'21	Q1'20 vs.
(mn) Digital customers	16 6	+20%
(%) NPL ratio	4 42	-52 bps
(%) Cost of credit	3 79	-63 bps
(%) Efficiency ratio	28 7	-334 bps
(%) Underlying RoTE	21 4	+5 0 pp

Underlying . profit att	562	3 4	46 7
Underlying PBT	1 154 ,	12 4	65 7
LLPs	-549	0 9	-30 6
operating income Net	1 799 ,	11 8	13 8
Operating expenses	-723	-16 3	-2 9
Total income	2 521 ,	2 0	8 4
Net fee income	632	-3 6	9 -1
+20% NII	1 780 ,	2 6	8 5
P&L*	Q1'21	Q4'20 vs.	Q1'20 vs.

Remarkable speed of vaccination and massive fiscal stimulus support activity recovery and cost of credit improvement

Significant profit increase YoY and QoQ boosted by net operating income (+13%) and LLPs reduction. Net operating income increased 19% YoY excluding Puerto Rico and Bluestem portfolio disposals

Revenue up due to leasing, capital markets and execution of originate-to-distribute in mortgages and auto. NII stable despite low rates and business disposals

1 (k) Digital customers	1 044 ,	+2%
(%) NPL ratio	2 11	+11 bps
(%) Cost of credit	2 12	-101 bps
(%) Efficiency ratio	39 3	-261 bps
2 (%) Underlying RoTE	29 6	+26 9 pp

DATA KEY	Q1'21	Q1'20 vs.	P&L*	Q1'21	Q4'20 vs.	Q1'20 vs.	3 VOLUMES
1 (k) Digital customers	1 044 ,	+2%	NII	1 337 ,	0 2	-0 1
			Net fee income	241	17 5	5 4	+1%
(%) NPL ratio	2 11	+11 bps	Total income	1 902 ,	6 8	7 7
	2 12	-101 bps	Operating expenses	-748	-1 9	1 0
(%) Cost of credit			Net operating income	1 154 ,	13 3	12 6
(%) Efficiency ratio	39 3	-261 bps	LLPs	-165	-70 7	-81 4
2 (%) Underlying RoTE		+26 9 pp	Underlying PBT	974	132 5	653 6
	29 6		Underlying . profit att	616	143 8	1 016 9 ,

(*) EUR mn and % change in constant euros

USA

(1) Excluding Puerto Rico disposal impact. Considering it, flat YoY

(2) RoTE adjusted for excess capital. Otherwise, 16%

(3) Loans and advances to customers excluding reverse repos. Customer funds: customer deposits excluding repos + marketed mutual funds. EUR bn and YoY changes in constant euros, excluding disposal of Puerto Rico and Bluestem impact (EUR 3.5 bn in loans and EUR 3.5 bn in deposits). Considering it, loans -3% and funds +12%.

The Group announced its intention to acquire the full 8.3% outstanding shares of Santander México

QoQ profit up primarily due to higher fees, trading gains and lower costs

Profit down YoY: NII pressure (lower rates and credit volumes as the corporate segment normalizes). Flat costs and lower LLPs

KEY DATA	Q1'21	Q1'20 vs.
(mn) Digital customers	5 1	+15%
(%) NPL ratio	3 21	+114 bps
(%) Cost of credit	3 00	+31 bps
(%) Efficiency ratio	43 1	+189 bps
(%) Underlying RoTE	12 7	-3 1 pp

Mexico

Underlying . profit att	182	6 2	-7 4
Underlying PBT	259	8 8	-6 7
LLPs	-228	7 5	-6 7
operating income Net	492	4 9	0 -7
Operating expenses	-373	-11 5	0 6
income Total	865	-2 9	-3 9
Net fee income	204	8 7	8 2
NII	667	6 -5	-6 4
P&L*	Q1'21	Q4'20 vs.	Q1'20 vs.

Ongoing execution of business digitalization. The conversion of creditors into full customers helped to maintain high profitability

New lending (-3% vs. Q1'20) impacted by lockdowns in some countries (especially in January and February), although positive activity signs in March

Profit up YoY favoured by revenue increase and LLPs drop. Flat costs despite investments in technology and scaling capabilities

KEY DATA	Q1'21	vs. Q1'20
Active customers (mn)	19.3	-7.0%
NPL ratio (%)	2.23	+2 bps
Cost of credit (%)	0.69	+7 bps
Efficiency ratio (%)	46.1	-8 bps
Underlying RoTE (%)	12.0	+2.4 pp

				Loans	Funds
Underlying . profit att	291	-16 2	25 0
Underlying PBT	506	-9 8	25 5
LLPs	-166	-20 0	-49 7
operating income Net	703	-7 7	1 5		54
Operating expenses	-600	0 1	1 0
Total income	1 304 ,	-4 3	1 3	116
Net fee income	188	-8 0	-1 8	-1%	+8%
NII	1 056 ,	-2 4	-2 6
P&L*	Q1'21	Q4'20 vs.	Q1'20 vs.	VOLUMES1

Global businesses

Corporate & Investment Banking

Remarkable SCIB business growth from all core businesses and geographies

Increase in activity driving strong revenue and underlying profit growth

Underlying . profit att	704		107 9	64	2
Net operating income	1 130 ,		49 4	70 6
Total income	1 655 ,		29 1	43 9
P&L*	Q1'21	vs.	Q4'20	Q1'20 vs.
3.0%	EUR 466 mn 18% of Group's total			31.8%
Underlying RoRWA	Total fees		Efficiency

(*) EUR mn and % change in constant euros

Wealth Management & Insurance

AUM's up in Private Banking and SAM: EUR 4,700 mn net sales. Total Insurance fees up 5% YoY

Total contribution to Group's profit up 1% vs. Q1'20 pre-crisis, despite PB being affected by lower interest rates, margin compression in SAM and positive non-recurring income in 2020 in Insurance

AUMs	Total fees		Contribution to Group's profit
370 bn EUR (+12% YoY)	788 mn EUR 31% of Group's total			EUR 523 mn (+1% YoY)
P&L*	Q1'21	vs.	Q4'20	Q1'20 vs.
Total income	502		-8 1	-1 7
operating income Net	281		-14 7	-2 7
Underlying . profit 197 att -17 7		-3 4

Innovative payments solutions for both Santander and non-Santander clients

(1) Brasil, Mexico, Chile and Argentina (2) Unbanked and underbanked population

Q1 results impacted by higher provisions to reinforce our balance sheet

Positive impact of FX hedging reflected in 2020 in Gain/Losses on FT

Lower costs (-7% YoY) and reduced income tax

P&L*	Q1'21	Q4'20	Q1'20
NII	-324	-345	-304
Gains/Losses FT on	-44	104	14
Operating expenses	-79	-80	-85
LLPs and other provisions	-187	-13	-24
and minority interests Tax	109	-44	-618
Underlying . profit att	-527	-389	-1 031 ,

(*) EUR mn

Strong business in Q1'21

Near-term outlook

Business environment

• We expect activity to increase as vaccination progresses, although at different speeds: • Starting in the US and the UK in H1'21 • Some remaining pressure in Europe and LatAm with improvement expected in H2'21 • Lower cost of credit expected amid current uncertainty, with uneven performance by segments • Consumer and individual lending expected to increase strongly across markets, with more normalized transactionality that should be reflected in higher-than-normal revenue growth • No further interest rate cuts expected, already rising (Brazil)

2021 outlook by business areas

• Europe: slight increase in profitability expected throughout the year, backed by forecasted household activity rebound, margin management, net fee income recovery and savings plan execution North America: after Q1 excellent results, underlying profit trends in the US should be better than initially expected • (resilient revenue, cost control and lower cost of credit) • South America: amid the challenging environment, Brazil should deliver continued PBT growth with increased revenue and cost of credit under control. Expected underlying RoTE of c. 20% • Digital Consumer Bank: once lockdown measures are fully lifted in Europe, we forecast a substantial acceleration in consumer demand, as seen in the US

After the strong start of the year, we reiterate our targets for 2021: improve the efficiency ratio, reduce cost of credit and increase profitability

Appendix

Primary segments and other countries

Secondary segments

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

Accelerating transformation to deliver superior growth under a more efficient operating model

Revenue increase YoY driven by CIB, NII (Spain and the UK) and ALCO sales (Portugal)

Strong efficiency improvement as a result of the ongoing optimization plans in all countries

Cost of credit normalizing after LLPs drop in all countries

KEY DATA	Q1'21	Q1'20 vs.
(mn) Digital customers	15 6	+9%
(%) ratio NPL	3 26	-11 bps
(%) Cost of credit	0 51	+15 bps
(%) Efficiency ratio	49 9	-858 bps
(%) Underlying RoTE	8 5	+6 6 pp

Underlying . profit att	826	217 2	338 2
Underlying PBT	1 231 ,	235 4	315 0
LLPs	-595	-36 1	-40 3
Net operating income	2 077 ,	24 3	36 1
Operating expenses	-2 071 ,	1 9	-3 8
Total income	4 149 ,	12 0	12 7
income Net fee	1 072 ,	10 5	-4 1
NII	2 645 ,	-2 0	12 5
P&L*	Q1'21	Q4'20 vs.	Q1'20 vs.

Increase in customer loans boosted by new lending, mainly in corporates and mortgages

Profit growth due to ALCO portfolio sales, cost control and lower LLPs

KEY DATA	Q1'21	Q1'20 vs.
(k) Digital customers	970	+22%
(%) NPL ratio	3 84	-72 bps
(%) Cost of credit	0 38	+15 bps
(%) Efficiency ratio	34 2	-898 bps
(%) Underlying RoTE	15 9	+8 6 pp

P&L*	Q1'21	Q4'20 vs.	Q1'20 vs.
+20% NII	193	-1 1	-4 6
Net fee income	99	-3 5	-2 0
Total income	427	34 8	21 9
Operating expenses	-146	-2 0	-3 5
operating income Net	281	67 4	41 2
LLPs	-35	-16 9	-56 9
Underlying PBT	234	4 75	138 6
Underlying . profit att	161	69 0	137 0

(*) EUR mn and % change

Q1'21 impacted by corporate loans drop, low rates and charges related to CHF mortgages

Net operating income after LLPs up 40% YoY driven by efficiency and lower LLPs. Resilient revenue (lower rates offset by fees and trading gains)

QoQ performance impacted by BFG contribution

Digital customers (k)	2,812	+8%
NPL ratio (%)	4.82	+53 bps
Cost of credit (%)	1.02	+14 bps
Efficiency ratio (%)	44.3	-274 bps
1 Underlying RoTE (%)	5.0	-0.1 pp

KEY DATA	Q1'21	vs. Q1'20	P&L*	Q1'21	Q4'20 vs.	Q1'20 vs.	2 VOLUMES
Digital customers (k)	2,812	+8%	NII	240	-0 5	-14 7	-1%
			Net fee income	127	6 5	14 4
NPL ratio (%)	4.82	+53 bps	Total income	357	2 -7	2 8
Cost of credit (%)	1.02	+14 bps	Operating expenses	-158	3 5	-3 1	29
			operating income Net	199	-14 2	8 1
Efficiency ratio (%)	44.3	-274 bps	LLPs	-68	-14 8	-24 8
			Underlying PBT	58	-11 7	-1 3
1 Underlying RoTE (%)	5.0	-0.1 pp	Underlying . profit att	21	0 2	-4 7

(*) EUR mn and % change in constant euros

(1) RoTE adjusted for excess capital. Otherwise, 3%

(2) EUR bn and YoY changes in constant euros. Loans and advances to customers excluding reverse repos. Customer funds: customer deposits excluding repos + marketed mutual funds

Increasing joint initiatives between Mexico and the US to improve customer attraction, share best practices and technology programmes

Robust customer funds underpinned by the US. Loan demand normalized following the uptick at the beginning of the pandemic and business disposals

Strong profit growth primarily boosted by cost of credit improvement in the US, cost control and revenue increase. NII affected by lower rates in Mexico

KEY DATA	Q1'21	Q1'20 vs.
(mn) Digital customers	6 3	+13%
(%) ratio NPL	2 39	+37 bps
(%) Cost of credit	2 34	-68 bps
(%) Efficiency ratio	41 5	-32 bps
1 (%) Underlying RoTE	22 0	+14 1 pp

Underlying . profit att	773	88 8	205 4
Underlying PBT	1 207 ,	87 7	196 9
LLPs	-393	-49 3	-65 3
operating income Net	1 620 ,	9 9	4 3
Operating expenses	-1 149 ,	-4 7	2 8
Total income	2 768 ,	3 3	3 7
Net fee income	451	12 8	7 2
NII	2 005 ,	-1 8	-2 3
P&L*	Q1'21	Q4'20 vs.	Q1'20 vs.

(*) EUR mn and % change in constant euros

(1) RoTE adjusted for excess capital. Otherwise, 14% 35

(2) Loans and advances to customers excluding reverse repos. Customer funds: customer deposits excluding repos + marketed mutual funds. EUR bn and YoY changes in constant euros, excluding disposal of Puerto Rico and Bluestem impact (EUR 3.5 bn in loans and EUR 3.5 bn in deposits). Considering it, loans -4% and funds +8%.

Strengthening regional connections in order to keep growing in a profitable manner

Improved customer experience and increased loyalty, allied to rigorous cost and risk management

QoQ comparison impacted by seasonality and lockdowns in some countries

Profit rose YoY boosted by double-digit growth in volumes, reflected in the positive trend in NII, and lower LLPs

KEY DATA	Q1'21	Q1'20 vs.
(mn) Digital customers	21 6	+21%
(%) ratio NPL	30 4	-33 bps
(%) Cost of credit	2 81	-49 bps
(%) Efficiency ratio	34 4	-135 bps
(%) Underlying RoTE	19 3	+3 4 pp

Underlying . profit att	773	-2 5	41 2
Underlying PBT	1 505 ,	6 2	59 4
LLPs	-683	-6 5	-33 2
operating income Net	2 320 ,	1 5	12 1
Operating expenses	-1 219 ,	-10 7	4 9
income Total	3 539 ,	-1 0	9 5
fee income Net	842	-5 3	2 4
NII	2 575 ,	-1 6	8 0
P&L*	Q1'21	Q4'20 vs.	Q1'20 vs.

We continued to make headway with our commercial strategy: demand

deposits (+42%), Superdigital (140 k active customers) and launch of Getnet(c.14 k PoS) and Autocompara (leader in insurance issuance)

Profit QoQ impacted by lower inflation, weak consumption associated to lockdown and increased tax burden

Profit rose 55% YoY boosted by NII (higher inflation and lower cost of funds), efficiency improvement and lower provisions

KEY DATA	Q1'21	Q1'20 vs.
(k) Digital customers	1 723 ,	+31%
(%) ratio NPL	4 74	+11 bps
(%) Cost of credit	1 33	+8 bps
(%) Efficiency ratio	38 4	-332 bps
(%) Underlying RoTE	17 2	+5 4 pp

Underlying . profit att	153	-9 8	54 7
Underlying PBT	277	-6 3	70 7
LLPs	-100	1 9	-39 5
operating income Net	378	-2 8	15 7
Operating expenses	-236	3 5	0 7
Total income	614	-0 5	9 5
fee income Net	95	-3 2	1 1
+20% NII	497	-3 1	9 3
P&L*	Q1'21	Q4'20 vs.	Q1'20 vs.

Ongoing digital transformation: strong digital customers growth, Getnet reached 21 k customers since October and launch of Cockpit

QoQ profit up due to lower costs and LLPs. NII impacted by margin pressure

Profit increased YoY boosted by the main lines of revenue and lower provisions. Costs reflect collective agreement

DATA KEY	Q1'21	Q1'20 vs.
(k) Digital customers	2 689 ,	+20%
(%) NPL ratio	2 32	-165 bps
(%) Cost of credit	4 55	-93 bps
(%) Efficiency ratio	65 0	+651 bps
(%) Underlying RoTE	20 4	+2 8 pp

P&L*	Q1'21	Q4'20 vs.	Q1'20 vs.
+20% NII	204	-25 6	29 7
Net fee income	74	-21 1	49 7
Total income	262	-20 6	26 4
Operating expenses	-171	-13 4	40 5
operating income Net	92	-31 3	6 6
LLPs	-14	-79 8	-71 5
Underlying PBT	44	16 2	53 2
Underlying . profit att	45	20 8	103 3
(*) EUR mn and % change in constant euros

Uruguay and Andean region

High profitability sustained across all countries supported by stronger customer loyalty, leading to greater transactionality

Uruguay: underlying profit decreased YoY impacted by lower interest rates and lower gains on financial transactions

Peru: profit rose boosted by higher revenue and efficiency improvement

Colombia: profit evolution impacted by higher costs related to IT and business development

Underlying attributable profit

Appendix

Primary segments and other countries

Secondary segments

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

Focus on accelerating our digital transformation, through a multi-channel strategy adapting channels to new business trends and customer needs

This clear orientation enabled us to rank top 3 in customer satisfaction, measured by NPS, in six of our markets

QoQ and YoY profit growth due to higher volumes and revenue with better efficiency and lower cost of credit

+9% YoY Loyal customers	6 markets Top 3 NPS1
+15%	50%
YoY	+9 pp YoY
Digital	Digital sales
customers	% of total sales

Underlying att. profit	1,836	42.4	208.1
Underlying PBT	3,190	45.2	183.6
LLPs	-1,783	-27.4	-48.6
Net operating income	5,378	6.0	9.9
Operating expenses	-4,157	-3.8	-1.8
Total income	9,536	1.5	4.5
Net fee income	1,709	1.2	-6.3
NII	7,472	-1.2	4.3
P&L*	Q1'21	vs. Q4'20	vs. Q1'20

(*) EUR mn and % change in constant euros

Note: Customer figures corresponding to total Group

(1) NPS = Net Promoter Score. Refers to number of countries in Top 3 position in H2'20

(2) EUR bn and YoY changes in constant euros. Loans and advances to customers excluding reverse repos. Customer funds: customer deposits excluding repos + marketed mutual funds

SCIB continues executing its strategy to strengthen its position as a strategic advisor. The recent creation of the DSG team¹ being one example of further developing its advisory expertise

Profit boosted by strong revenue growth, backed by market activities, together with the positive performance of GDF and GTB

Compared to Q4'20 profit was 108% higher, backed by higher revenue, good cost control and lower provisions

Total income (Constant EUR mn)

Underlying . profit att	704	107 9	64 2
Underlying PBT	1 058 ,	109 1	64 5
LLPs	-47	-74 4	778 6
operating income Net	1 130 ,	49 4	70 6
Operating expenses	-526	-0 1	7 7
income Total	1 655 ,	29 1	43 9
(losses) Gains FT on	412	428 7	244 2
Net fee income	466	23 0	27 9
NII	720	0 -7	19 0
P&L*	Q1'21	Q4'20 vs.	Q1'20 vs.

3.0%

In Private Banking, continued good activity levels and business growth. Net new money YTD: EUR 3,300 million

In SAM, volumes are back to speed (up +10% YoY), both by market movement and by positive net sales (EUR 1,400 million YTD)

In Insurance, Gross Written Premiums +11% YoY, despite related business is affected by lower credit activity. Total Insurance fees up 5% YoY

Total contribution to Group's profit up 1% vs. Q1'20 pre-crisis, despite lower interest rates in PB, margin compression in SAM and positive non-recurring income in 2020 in Insurance

ACTIVITY
EUR bn and % change in constant euros			QoQ	YoY
Total AUM			+1% 370	+12%
Funds and investments1		227	+1%	+13%
- Asset Management (SAM)		182	+1%	+10%
- Private Banking	70		+1%	+20%
Custody of customer funds	91		+4%	+21%
Customer deposits	53		-1%	-3%
Customer loans	17		+3%	+9%

Underlying att. profit	197	-17.7	-3.4	31%
Underlying PBT	273	-17.7	-3.4	Weight of Total Group
LLPs	-5	10.8	-8.4	(+3% YoY)
Net operating income	281	-14.7	-2.7	EUR 788 mn
Operating expenses	-220	2.0	-0.5	Total fees3
Total income	502	-8.1	-1.7	to Group's profit2
Net fee income	297	0.3	2.5	(+1% YoY) Total contribution
NII	88	-12.5	-11.3	EUR 523 mn
P&L*	Q1'21	vs. Q4'20	vs. Q1'20

(*) EUR mn and % change in constant euros

Note. AuM: Total assets marketed and/or managed

(1) Total adjusted for funds from private banking customers managed by SAM

(2) Profit after tax + fees generated by asset management and insurance transferred to the commercial network

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

Appendix

Primary segments and other countries

Secondary segments

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

Well-funded, diversified, prudent and highly liquid balance sheet (large % contribution from customer deposits), actively reinforced already strong LCR ratios following covid-19 crisis

	Liquidity Coverage Ratio (LCR)		Net Stable Funding Ratio (NSFR)
	1 Mar-21	Dec-20	Dec-20
Spain2	176%	175%	116%
K2 U	138%	152%	129%
Portugal	131%	122%	123%
Poland	222%	187%	150%
U S	156%	129%	120%
Mexico	195%	207%	132%
Brazil	160%	167%	119%
Chile	136%	155%	120%
Argentina	271%	222%	174%
SCF	534%	314%	114%
Group	173%	168%	120%

(1) Provisional data

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

(3) 12 month average, provisional data

Conservative and decentralized liquidity and funding model

(1) Data includes public issuances from all units with period-average exchange rates. Excludes securitisations. Two T2 instruments issued in Q4'20 as prefunding for 2021, totalling EUR 2.3 billion, are not included.

46

(2) Includes Banco Santander S.A. and Santander International Products PLC

Interest rate risk hedging

Net interest income sensitivity* to a +/-100 bp parallel shift EUR mn, Feb-21

Mostly positive interest rate sensitivity ALCO portfolios reflect our geographic diversification

Distribution of ALCO portfolios by country %, Mar-21

Issuances YTD against funding plan

2021 Funding plan and issuances

EUR bn, Mar-21	Snr Non-Preferred		Snr +		Hybrids	Covered Bonds		TOTAL
		Plan	Issued	Plan	Issued	Plan	Issued	Plan	Issued
	Santander S A	8-10	4 6	2-3	1 2 3	-	-	10-13	6 9
	SCF	3-4	1 0	-	-	0-1	-	3-5	1 0
	UK	2 5-3 5	1 7	-	-	-	-	2 5-3 5	1 7
	SHUSA	3-4	-	-	-	-	-	3-4	-
	2 Other	2 5-3 5	0 5	0-0 5	-	-	-	2 5-4	0 5
	2 TOTAL	19-25	7 8	2-3 5	2 3	0-1	-	21-29 5	10 1

• The Financial Plan is focused on covering TLAC/MREL requirements, with no secured issuances, to:

Banco Santander S.A.'s 2021 funding plan contemplates the following:

• continue building up TLAC/MREL buffers.
• pre-finance senior non-preferred / senior preferred transactions which lose TLAC eligibility due to entering in the <1 year window.
• cover the increase in estimated RWAs which are the base of both requirements.

48 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. (1) Two T2 instruments issued in Q4'20 as prefunding for 2021,totalling EUR 2.3 billion: EUR 1 billion issued 22-Oct-20 with a coupon of 1.625% and USD 1.5 billion issued 3-Dec-20 with a coupon of 2.749%. Issuance of additional hybrid securities will depend on RWA growth, to continue fulfilling the AT1 and T2 buffers (1.5% and 2% respectively). (2) Santander International Products, Plc. Is not included in the table: in Q1'21 issued EUR 0.6 bn of Senior Unsecured

Santander's capital levels, both phased-in and fully loaded, exceed minimum regulatory requirements

SREP capital requirements and MDA*

• Following regulatory changes in March 2020 in response to the covid-19 crisis, the minimum CET1 to be maintained by the Group is 8.85% (was 9.69% pre-changes)
• As of Mar-21, the distance to the MDA is 315 bps²and the CET1 management buffer is 345 bps

Assumed capital requirements (fully loaded)

AT1 and T2 issuance are planned to be zero to target 1.5% and 2% of RWAs respectively assuming constant RWAs

49 * The phased-in ratio includes the transitory treatment of IFRS 9, calculated in accordance with article 473 bis of the Regulation on Capital Requirements (CRR) and subsequent amendments introduced by Regulation 2020/873 of the European Union. Additionally, the Tier 1 and total phased-in capital ratios include the transitory treatment according to chapter 2, title 1, part 10 of the aforementioned CRR. (1) Countercyclical buffer.

(2) MDA trigger = 3.45% - 0.18% - 0.12% = 3.15% (18 bps of AT1 and 12 bps of T2 shortfall is covered with CET1).

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

TLAC Ratio

EUR mn	30 June 2020	30 September 2020 31	December 2020	31 March 2021 E
Own Funds	86 335 ,	86 191 ,	86 836 ,	86 634 ,
(CET1) of which: Common Equity Tier 1 capital	70 746 ,	70 829 ,	69 451 ,	69 349 ,
(AT1) of which: Additonal Tier 1 capital	7 794 ,	7 740 ,	7 723 ,	7 591 ,
(T2) of which: Tier 2 capital	7 796 ,	7 621 ,	9 662 ,	9 693 ,
Eligible Liabilities	30 998 ,	30 650 ,	30 437 ,	32 550 ,
Subordinated instruments	767	860	964	1 120 ,
Non preferred senior debt	23 336 ,	22 912 ,	22 540 ,	24 352 ,
Preferred senior debt and instruments with the same insolvency ranking	6 894 ,	6 878 ,	6 933 ,	079 7 ,
TLAC BEFORE DEDUCTIONS	117 333 ,	116 841 ,	117 273 ,	119 185 ,
Deductions	53 652 ,	52 622 ,	51 025 ,	48 878 ,
TLAC AFTER DEDUCTIONS	63 681 ,	64 219 ,	66 248 ,	70 307 ,
(RWAs) Risk Weighted Assets	275 774 ,	275 124 ,	277 304 ,	283 145 ,
(% RWAs) TLAC RATIO	23 1%	23 3%	23 9%	24 8%
(LE) Leverage Exposure	735 543 ,	635 439 ,	632 303 ,	689 349 ,
(% LE) TLAC RATIO	8 7%	10 1%	10 5%	10 2%

• TLAC ratio increased in the first quarter of 2021 by 0.9% to 24.8% (compared with the fully-loaded TLAC requirement of 21.5% as of 1 January 2022 and the current requirement of 16% as of 31 March 2021).

• The increase is mainly due to the rise in the TLAC before deductions (EUR 1.9 bn) and to the drop in the deduction (EUR 2.1 bn), as a result of the higher surpluses in other resolution groups. This increase in TLAC ratio is partially offset by the higher RWAs (EUR 5.8 bn).
• Between December 2020 and March 2021, TLAC before deductions increased due mainly to the SNP issuances carried out in the quarter (EUR 3.4 bn) and dollar appreciation (EUR 0.6 bn), which were partially offset by EUR 2.0 bn of SNP issuances that have stopped meeting eligibility criteria during the quarter.

December 20 figures show the Closing data, not the estimates shown in the fourth quarter earnings presentation

Appendix

Primary segments and other countries

Secondary segments

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 (%)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Europe	2	2	2	2	2
	30	12	06	09	08
Spain	1	1	1	1	1
	99	86	82	85	85
United Kingdom	2 49	2 35	2 32	2 36	2 33
Portugal	1	1	1	1	1
	63	57	57	51	46
Poland	4	3	2	2	2
	04	34	95	89	91
North America	8 94	85 7	82 7	70 7	78 7
US	7	6	6	6	7
	76	90	96	83	00
Mexico	12	11	10	10	10
	25	00	73	36	11
South America	11 70	10 00	9 03	9 50	9 92
Brazil	13	12	11	11	11
	56	28	66	07	37
Chile	7	5	4	7	6
	35	74	75	03	93
Argentina	23	20	18	19	22
	75	06	37	93	03
Digital	22	22	07	05	3
Consumer	4	4	4	4	98
Bank

Cost of deposits (%)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Europe	0.36	0.25	0.14	0.12	0.11
Spain	0.06	0.04	0.04	0.04	0.04
United Kingdom	0.69	0.52	0.29	0.23	0.21
Portugal	0.08	0.06	0.05	0.03	0.02
Poland	0.65	0.42	0.14	0.09	0.05
North America	1.57	1.15	0.90	0.74	0.64
US	0.74	0.40	0.30	0.23	0.17
Mexico	3.54	3.21	2.53	2.03	1.85
South America	3.13	2.07	1.58	1.45	1.83
Brazil	3.12	2.27	1.61	1.46	1.47
Chile	1.35	0.71	0.34	0.45	0.35
Argentina	10.64	7.37	8.70	9.98	11.62
Digital Consumer Bank	0.47	0.44	0.39	0.35	0.30

Appendix

Primary segments and other countries

Secondary segments

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

86% of moratoria has expired, with only 5% in stage 3. From the 14% still active, 73% is secured and most of it is in Europe

Main units

Active moratoria as of 31st March 21, EUR bn

▪ Portugal, Spain and UK represent 90% of active moratoria and 76% is secured

Breakdown of moratoria by segments, regions and main countries: credit quality of expired moratoria remains solid

	Total			Expired % as	Expired
EUR bn 31-Mar-21 ,	moratoria	(*) % loan book	o/w: expired	of Total	% Stage 1	% Stage 2	% Stage 3
Total Group	112	12%	96	86%	75%	20%	5%
Detail by segments
Mortgages	71	22%	62	87%	84%	14%	3%
Consumer	19	8%	18	96%	47%	42%	11%
SMEs & Corporates	22	6%	16	73%	74%	20%	6%
Europe	75	11%	60	80%	80%	16%	4%
UK	45	19%	44	96%	80%	17%	3%
Spain	11	6%	5	46%	74%	16%	10%
SCF	4	4%	4	97%	86%	10%	4%
America North	20	16%	20	98%	50%	42%	9%
(SBNA SC) USA &	14	17%	13	97%	34%	55%	11%
Mexico	6	21%	6	99%	81%	15%	5%
South America	17	14%	16	97%	86%	9%	5%
Brazil	5	8%	5	94%	72%	19%	9%

Stage coverage

	¹ Exposure				Coverage
	Mar-21	Dec 20 -	Sep 20 -	Jun-20	Mar-20	Mar-21	Dec 20 -	Sep 20 -	Jun-20	Mar-20
Stage 1	885	864	862	878	891	0 5%	0 5%	0 6%	0 6%	0 6%
Stage 2	70	69	60	61	53	8 1%	8 5%	8 8%	7% 7	8 2%
Stage 3	32	32	31	33	33	42 5%	43 4%	43 3%	41 1%	40 8%

(1) Exposure subject to impairment in EUR bn.

Additionally, customer loans not subject to impairment recorded at mark to market with changes through P&L (EUR 27 bn in March 21, EUR 25 bn in December 2020, EUR 29 bn in September 2020, EUR 35 bn in June 2020 and EUR 31 bn in March 2020)

NPL ratio (%)

	Mar-20	Jun-20	Sep-20	Dec-20	Mar-21
Europe	3.37	3.41	3.29	3.34	3.26
Spain	6.88	6.55	5.98	6.23	6.18
United Kingdom	0.99	1.10	1.33	1.24	1.35
Portugal	4.56	4.43	4.25	3.89	3.84
Poland	4.29	4.57	4.58	4.74	4.82
North America	2.02	1.73	1.96	2.23	2.39
US	2.00	1.49	1.85	2.04	2.11
Mexico	2.07	2.50	2.33	2.81	3.21
South America	4.63	4.74	4.40	4.39	4.30
Brazil	4.93	5.07	4.64	4.59	4.42
Chile	4.63	4.99	4.76	4.79	4.74
Argentina	3.97	3.15	2.88	2.11	2.32
Digital Consumer Bank	2.21	2.31	2.29	2.17	2.23
TOTAL GROUP	3.25	3.26	3.15	3.21	3.20

Coverage ratio (%)

	Mar-20	Jun-20	Sep-20	Dec-20	Mar-21
Europe	47.0	46.5	48.7	50.3	50.0
Spain	44.6	43.3	46.0	47.1	47.2
United Kingdom	39.7	42.8	41.6	44.7	40.5
Portugal	59.0	60.9	64.3	66.5	69.2
Poland	68.1	69.0	70.8	70.7	70.3
North America	170.1	206.5	201.6	182.6	153.4
US	181.4	253.1	228.8	210.4	183.2
Mexico	133.9	114.9	132.6	120.8	95.6
South America	92.9	93.0	97.2	97.4	98.4
Brazil	108.0	110.2	114.9	113.2	116.5
Chile	57.2	54.7	59.7	61.4	63.4
Argentina	131.2	165.7	186.3	275.1	232.4
Digital Consumer Bank	111.6	108.0	110.6	113.3	111.4
TOTAL GROUP	71.3	72.1	76.0	76.4	74.0

Credit impaired loans and loan-loss allowances. Breakdown by operating areas. March 2021

Credit impaired loans Loan-loss allowances

Cost of credit (%)

	Mar-20	Jun-20	Sep-20	Dec-20	Mar-21
Europe	0.36	0.41	0.48	0.58	0.51
Spain	0.64	0.68	0.80	1.01	0.91
United Kingdom	0.14	0.22	0.26	0.27	0.21
Portugal	0.23	0.30	0.42	0.51	0.38
Poland	0.88	0.96	0.99	1.10	1.02
North America	3.02	3.21	3.07	2.92	2.34
US	3.13	3.30	3.08	2.86	2.12
Mexico	2.69	2.95	2.97	3.03	3.00
South America	3.29	3.49	3.50	3.32	2.81
Brazil	4.43	4.67	4.58	4.35	3.79
Chile	1.25	1.46	1.59	1.50	1.33
Argentina	5.48	5.67	5.54	5.93	4.55
Digital Consumer Bank	0.63	0.74	0.79	0.83	0.69
TOTAL GROUP	1.17	1.26	1.27	1.28	1.08

Appendix

Primary segments and other countries

Secondary segments

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 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

63

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 and other countries

Secondary segments

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)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
interest income Net	8 487 ,	7 715 ,	7 773 ,	019 8 ,	956 7 ,
Net fee income	2 853 ,	2 283 ,	2 423 ,	2 456 ,	2 548 ,
(losses) Gains financial transactions and other on	474	706	891	520	886
income Total	11 814 ,	10 704 ,	11 087 ,	10 995 ,	11 390 ,
Operating expenses	(5 577) ,	(5 076) ,	(5 073) ,	(5 241) ,	(5 118) ,
operating income Net	6 237 ,	5 628 ,	6 014 ,	5 754 ,	6 272 ,
Net loan-loss provisions	(3 909) ,	(3 118) ,	(2 535) ,	(2 611) ,	(1 992) ,
(losses) Other gains and provisions	(372)	(625)	(304)	(485)	(467)
Underlying profit before tax	1 956 ,	1 885 ,	3 175 ,	2 658 ,	3 813 ,
Underlying consolidated profit	696	1 677 ,	2 047 ,	1 738 ,	2 489 ,
Underlying attributable profit	377	1 531 ,	1 750 ,	1 423 ,	2 138 ,
Net capital gains and provisions*	(46)	(12 660) ,	—	(1 146) ,	(530)
Attributable profit	331	(11 129) ,	1 750 ,	277	1 608 ,

(*) Including: in Q1'20, restructuring costs

in Q2'20, adjustment to the valuation of goodwill, adjustment has been made to deferred tax assets of the Spanish consolidated fiscal group and restructuring costs and other in Q4'20, restructuring costs and other in Q1'21, restructuring costs

65

SANTANDER GROUP (Constant EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net interest income	567 7 ,	411 7 ,	748 7 ,	8 093 ,	956 7 ,
Net fee income	2 543 ,	2 208 ,	2 399 ,	2 460 ,	2 548 ,
(losses) Gains financial transactions and other on	455	647	882	513	886
Total income	10 565 ,	10 266 ,	11 030 ,	11 066 ,	11 390 ,
Operating expenses	(5 111) ,	(4 924) ,	(5 071) ,	(5 283) ,	(5 118) ,
operating income Net	5 454 ,	5 342 ,	5 959 ,	5 783 ,	6 272 ,
Net loan-loss provisions	(3 487) ,	(2 967) ,	(2 563) ,	(2 650) ,	(1 992) ,
(losses) Other gains and provisions	(330)	(620)	(303)	(491)	(467)
Underlying profit before tax	1 637 ,	1 754 ,	3 092 ,	2 643 ,	3 813 ,
Underlying consolidated profit	492	1 594 ,	2 007 ,	1 735 ,	2 489 ,
Underlying attributable profit	192	1 456 ,	1 716 ,	1 423 ,	2 138 ,
capital gains provisions* Net and	(45)	(12 662) ,	(24)	(1 141) ,	(530)
Attributable profit	146	(11 205) ,	1 692 ,	281	1 608 ,

(*) Including: in Q1'20, restructuring costs

in Q2'20, adjustment to the valuation of goodwill, adjustment has been made to deferred tax assets of the Spanish consolidated fiscal group and restructuring costs and other in Q4'20, restructuring costs and other in Q1'21, restructuring costs

66

Europe (EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net interest income	2 378 ,	2 330 ,	2 534 ,	2 670 ,	2 645 ,
Net fee income	1 128 ,	942	961	968	1 072 ,
(losses) Gains financial transactions and other on	212	125	388	37	432
Total income	3 718 ,	3 398 ,	3 883 ,	3 675 ,	4 149 ,
Operating expenses	(2 175) ,	(2 038) ,	(2 046) ,	(2 015) ,	(2 071) ,
operating income Net	1 543 ,	1 359 ,	1 837 ,	1 659 ,	2 077 ,
Net loan-loss provisions	(1 004) ,	(677)	(735)	(927)	(595)
(losses) Other gains and provisions	(236)	(186)	(177)	(371)	(251)
Underlying profit before tax	303	496	925	361	1 231 ,
Underlying consolidated profit	202	360	660	268	829
Underlying attributable profit	193	336	628	256	826

Europe (Constant EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
interest income Net	2 350 ,	2 337 ,	2 558 ,	2 699 ,	2 645 ,
Net fee income	1 117 ,	942	963	970	1 072 ,
(losses) Gains financial transactions and other on	213	122	387	36	432
Total income	3 680 ,	3 402 ,	3 909 ,	3 704 ,	4 149 ,
Operating expenses	(2 154) ,	(2 044) ,	(2 065) ,	(2 034) ,	(2 071) ,
operating income Net	1 527 ,	1 358 ,	1 844 ,	1 671 ,	2 077 ,
Net loan-loss provisions	(997)	(680)	(740)	(932)	(595)
(losses) Other gains and provisions	(234)	(184)	(180)	(372)	(251)
Underlying profit before tax	297	494	924	367	1 231 ,
Underlying consolidated profit	199	358	660	273	829
Underlying attributable profit	189	335	629	261	826

Spain (EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net interest income	925	931	1 034 ,	1 067 ,	1 019 ,
Net fee income	643	535	562	573	587
(losses) Gains financial transactions and other on	220	96	204	(8)	178
Total income	1 789 ,	1 562 ,	1 800 ,	1 632 ,	1 785 ,
Operating expenses	(944)	(896)	(893)	(873)	(867)
operating income Net	844	665	907	759	918
Net loan-loss provisions	(628)	(313)	(449)	(611)	(449)
(losses) Other gains provisions and	(104)	(115)	(112)	(128)	(129)
Underlying profit before tax	112	237	346	20	340
Underlying consolidated profit	90	160	246	20	243

United Kingdom (EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net interest income	820	796	905	983	1 001 ,
Net fee income	190	94	115	96	120
(losses) Gains financial transactions and other on	(3)	1	14	(31)	(10)
income Total	1 007 ,	891	1 034 ,	1 048 ,	1 111 ,
Operating expenses	(686)	(631)	(620)	(601)	(652)
operating income Net	321	259	414	447	459
loan-loss provisions Net	(178)	(223)	(179)	(97)	(18)
(losses) gains provisions Other and	(71)	(5)	(30)	(150)	(31)
Underlying profit before tax	72	31	205	200	410
Underlying consolidated profit	52	19	149	171	294
Underlying attributable profit	52	19	149	171	294

United Kingdom (GBP mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net interest income	706	706	818	885	874
Net fee income	163	85	104	87	105
(losses) Gains financial transactions and other on	(2)	1	13	(27)	(8)
Total income	867	791	934	945	971
Operating expenses	(591)	(560)	(562)	(543)	(569)
operating income Net	276	231	372	402	401
Net loan-loss provisions	(153)	(197)	(163)	(89)	(16)
(losses) Other gains provisions and	(61)	(5)	(27)	(134)	(27)
Underlying profit before tax	62	28	182	179	358
Underlying consolidated profit	45	17	133	153	257
Underlying attributable profit	45	17	133	153	257

Portugal (EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net interest income	202	197	193	195	193
Net fee income	101	90	94	103	99
(losses) Gains financial transactions and other on	47	30	25	19	135
Total income	350	317	312	317	427
Operating expenses	(151)	(145)	(146)	(149)	(146)
operating income Net	199	172	166	168	281
Net loan-loss provisions	(80)	(24)	(47)	(42)	(35)
(losses) Other gains provisions and	(21)	(16)	1	7	(13)
Underlying profit before tax	98	132	120	133	234
Underlying consolidated profit	68	92	83	95	161
Underlying attributable profit	68	92	83	95	161

Poland (EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net interest income	296	251	246	243	240
fee income Net	116	104	112	120	127
(losses) Gains financial transactions and other on	(48)	23	35	24	(10)
income Total	365	377	394	388	357
Operating expenses	(172)	(143)	(161)	(154)	(158)
operating income Net	193	235	233	234	199
provisions Net loan-loss	(95)	(89)	(65)	(81)	(68)
(losses) Other gains and provisions	(36)	(40)	(32)	(87)	(72)
Underlying profit before tax	62	105	136	66	58
Underlying consolidated profit	32	74	100	34	26
Underlying attributable profit	23	51	68	20	21

Poland (PLN mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net interest income	1 279 ,	1 134 ,	1 095 ,	1 096 ,	1 090 ,
Net fee income	503	467	498	541	576
(losses) Gains financial transactions and other on	(206)	95	156	109	(46)
Total income	1 576 ,	1 696 ,	1 749 ,	1 746 ,	1 621 ,
Operating expenses	(742)	(645)	(714)	(694)	(718)
operating income Net	834	1 051 ,	1 036 ,	1 052 ,	902
Net loan-loss provisions	(411)	(399)	(291)	(363)	(309)
(losses) Other gains provisions and	(155)	(181)	(141)	(390)	(329)
Underlying profit before tax	268	470	603	300	265
Underlying consolidated profit	140	329	442	154	116
Underlying attributable profit	98	225	302	93	93

Other Europe (EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net interest income	134	155	155	182	192
Net fee income	78	120	78	75	138
(losses) Gains financial transactions and other on	(5)	(24)	109	32	139
income Total	207	251	343	290	469
Operating expenses	(222)	(223)	(226)	(238)	(249)
Net operating income	(15)	28	116	52	221
provisions Net loan-loss	(23)	(29)	5	(97)	(26)
(losses) Other gains and provisions	(4)	(9)	(4)	(12)	(6)
Underlying profit before tax	(42)	(10)	117	(58)	189
Underlying consolidated profit	(40)	15	81	(52)	106
Underlying attributable profit	(40)	14	81	(51)	108

Other Europe (Constant EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net interest income	133	151	155	182	192
income Net fee	75	118	78	75	138
(losses) Gains financial transactions and other on	(6)	(25)	109	32	139
income Total	202	244	342	289	469
Operating expenses	(218)	(219)	(225)	(237)	(249)
operating income Net	(16)	25	117	52	221
Net loan-loss provisions	(22)	(30)	6	(97)	(26)
(losses) Other gains and provisions	(5)	(7)	(6)	(12)	(6)
Underlying profit before tax	(43)	(12)	117	(57)	189
Underlying consolidated profit	(41)	13	81	(51)	106
Underlying attributable profit	(42)	14	81	(50)	108

North America (EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net interest income	2 261 ,	2 079 ,	2 076 ,	2 055 ,	2 005 ,
Net fee income	464	405	413	402	451
(losses) Gains financial transactions and other on	216	227	194	242	313
Total income	2 941 ,	2 711 ,	2 683 ,	2 699 ,	2 768 ,
Operating expenses	(1 230) ,	(1 123) ,	(1 109) ,	(1 215) ,	(1 149) ,
operating income Net	1 711 ,	1 587 ,	1 574 ,	1 484 ,	1 620 ,
Net loan-loss provisions	(1 246) ,	(1 123) ,	(775)	(773)	(393)
(losses) Other gains provisions and	(14)	(38)	(24)	(57)	(20)
Underlying profit before tax			774	654	1 207
	452	427			,
Underlying consolidated profit	337	369	528	500	910

North America (Constant EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
interest income Net	2 052 ,	1 988 ,	2 071 ,	2 042 ,	2 005 ,
Net fee income	421	394	417	400	451
(losses) Gains financial transactions and other on	198	211	190	237	313
Total income	2 670 ,	2 592 ,	2 678 ,	2 679 ,	2 768 ,
Operating expenses	(1 117) ,	(1 073) ,	(1 109) ,	(1 205) ,	(1 149) ,
operating income Net	1 553 ,	1 520 ,	1 569 ,	1 474 ,	1 620 ,
Net loan-loss provisions	(1 134) ,	(1 059) ,	(785)	(776)	(393)
(losses) Other gains and provisions	(13)	(36)	(24)	(55)	(20)
Underlying profit before tax	406	425	760	643	1 207 ,
Underlying consolidated profit	304	363	522	491	910
Underlying attributable profit	253	329	436	410	773

United States (EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net interest income	1 462 ,	1 429 ,	1 406 ,	1 348 ,	1 337 ,
income Net fee	250	215	218	206	241
(losses) Gains financial transactions and other on	217	157	206	247	324
income Total	1 929 ,	1 801 ,	1 830 ,	1 801 ,	1 902 ,
Operating expenses	(809)	(776)	(722)	(772)	(748)
operating income Net	1 120 ,	1 024 ,	1 108 ,	1 029 ,	1 154 ,
Net loan-loss provisions	(972)	(832)	(572)	(561)	(165)
(losses) Other gains and provisions	(6)	(30)	(20)	(37)	(15)
Underlying profit before tax	141	163	515	431	974
Underlying consolidated profit	99	170	333	330	739
Underlying attributable profit	60	151	259	260	616

United States (USD mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net interest income	1 612 ,	1 573 ,	1 644 ,	1 608 ,	1 611 ,
fee income Net	275	237	255	247	290
(losses) Gains financial transactions and other on	239	173	240	291	390
income Total	2 126 ,	1 983 ,	2 139 ,	2 145 ,	2 290 ,
Operating expenses	(892)	(855)	(846)	(918)	(901)
operating income Net	1 235 ,	1 128 ,	1 292 ,	1 227 ,	1 390 ,
Net loan-loss provisions	(1 072) ,	(916)	(683)	(679)	(199)
(losses) Other gains and provisions	(7)	(33)	(24)	(44)	(18)
Underlying profit before tax	156	180	586	504	1 173 ,
Underlying consolidated profit	109	188	381	386	890
Underlying attributable profit	66	166	296	305	743

Mexico (EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net interest income	798	650	669	707	667
income Net fee	211	185	189	188	204
(losses) Gains financial transactions and other on	(2)	70	(10)	(4)	(6)
income Total	1 007 ,	905	848	891	865
Operating expenses	(415)	(341)	(375)	(422)	(373)
operating income Net	592	565	473	469	492
Net loan-loss provisions	(273)	(291)	(203)	(212)	(228)
(losses) Other gains and provisions	(8)	(6)	(4)	(19)	(5)
Underlying profit before tax	311	267	266	238	259
Underlying consolidated profit	237	201	200	185	196
Underlying attributable profit	220	186	185	171	182

Mexico (MXN mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net	17	16	17	17	16
interest	484	706	310	322	360
income	,	,	,	,	,
income	4	4	4	4	4
Net	617	719	868	596	995
fee	,	,	,	,	,
(losses) Gains financial transactions and other on	(51)	1 658 ,	(194)	(91)	(156)
income Total	22 049 ,	23 083 ,	21 984 ,	21 827 ,	21 199 ,
Operating expenses	(9 088) ,	(8 749) ,	(9 654) ,	(10 327) ,	(9 139) ,
operating	12	14	12	11	12
income	962	334	330	500	060
Net	,	,	,	,	,
Net	(5	(7	(5	(5	(5
loan-loss	985)	336)	339)	194)	582)
provisions	,	,	,	,	,
(losses) Other gains and provisions	(167)	(166)	(109)	(470)	(127)
Underlying profit before tax	6 810 ,	6 832 ,	6 881 ,	836 5 ,	6 351 ,
Underlying	191	149	170	529	810
consolidated	5	5	5	4	4
profit	,	,	,	,	,
Underlying	4	4	4	4	4
attributable	814	761	786	198	458
profit	,	,	,	,	,

Other North America (EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net interest income	(0)	0	0	0	0
income Net fee	4	5	7	8	7
(losses) Gains financial transactions and other on	2	(1)	(2)	(0)	(5)
income Total	5	4	6	8	2
Operating expenses	(6)	(6)	(13)	(22)	(28)
operating income Net	(0)	(2)	(7)	(14)	(26)
Net loan-loss provisions	(0)	(0)	(0)	(0)	(0)
(losses) Other gains and provisions	(0)	(2)	(0)	0	(0)
Underlying profit before tax	(1)	(4)	(7)	(14)	(26)
Underlying consolidated profit	2	(3)	(5)	(15)	(25)
Underlying attributable profit	2	(3)	(5)	(15)	(25)

Other North America (Constant EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net interest income	(0)	0	0	0	0
Net fee income	4	5	7	8	7
(losses) Gains financial transactions and other on	2	(1)	(2)	(0)	(5)
income Total	5	4	6	8	2
Operating expenses	(6)	(6)	(13)	(22)	(28)
Net operating income	(0)	(2)	(7)	(14)	(26)
provisions Net loan-loss	(0)	(0)	(0)	(0)	(0)
(losses) Other gains and provisions	(0)	(2)	(0)	0	(0)
Underlying profit before tax	(1)	(4)	(7)	(14)	(26)
Underlying consolidated profit	2	(3)	(5)	(15)	(25)
Underlying attributable profit	2	(3)	(5)	(15)	(25)

South America (EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net interest income	3 065 ,	2 606 ,	2 486 ,	2 566 ,	2 575 ,
income Net fee	1 077 ,	779	848	885	842
(losses) Gains financial transactions and other on	26	310	149	70	122
income Total	4 169 ,	3 695 ,	3 483 ,	3 522 ,	3 539 ,
Operating expenses	(1 492) ,	(1 281) ,	(1 250) ,	(1 335) ,	(1 219) ,
operating income Net	2 677 ,	2 414 ,	2 233 ,	2 187 ,	2 320 ,
Net loan-loss provisions	(1 325) ,	(1 110) ,	(787)	(702)	(683)
(losses) Other gains and provisions	(142)	(54)	(71)	(54)	(132)
Underlying profit before tax	1 210 ,	1 250 ,	1 375 ,	1 431 ,	1 505 ,
Underlying consolidated profit	796	781	832	935	905
Underlying attributable profit	700	682	731	794	773

South America (Constant EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
interest income Net	2 384 ,	2 375 ,	2 434 ,	2 615 ,	2 575 ,
Net fee income	822	714	818	889	842
(losses) Gains financial transactions and other on	25	271	145	69	122
Total income	3 231 ,	3 360 ,	3 397 ,	3 573 ,	3 539 ,
Operating expenses	(1 161) ,	(1 170) ,	(1 227) ,	(1 365) ,	(1 219) ,
operating income Net	2 070 ,	2 190 ,	2 170 ,	2 209 ,	2 320 ,
Net loan-loss provisions	(1 022) ,	(1 018) ,	(798)	(730)	(683)
(losses) Other gains and provisions	(104)	(53)	(67)	(61)	(132)
Underlying profit before tax	944	1 118 ,	1 304 ,	1 417 ,	1 505 ,
Underlying consolidated profit	630	702	796	934	905
Underlying attributable profit	548	609	697	793	773

Brazil (EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net interest income	2 270 ,	1 813 ,	1 756 ,	1 786 ,	1 780 ,
Net fee income	869	614	664	677	632
(losses) Gains financial transactions and other on	(3)	224	114	82	109
income Total	3 137 ,	2 651 ,	2 534 ,	2 544 ,	2 521 ,
Operating expenses	(1 004) ,	(835)	(805)	(897)	(723)
Net operating income	2 133 ,	1 816 ,	1 729 ,	1 648 ,	1 799 ,
provisions Net loan-loss	(1 066) ,	(843)	(569)	(540)	(549)
(losses) Other gains and provisions	(127)	(31)	(68)	(36)	(96)
Underlying profit before tax	940	942	1 092 ,	1 072 ,	1 154 ,
Underlying consolidated profit	571	533	611	636	624
Underlying attributable profit	517	478	550	568	562

Brazil (BRL mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net	11	10	11	11	11
interest	100	725	066	446	744
income	,	,	,	,	,
Net	4	3	4	4	4
fee	250	679	167	324	169
income	,	,	,	,	,
(losses) Gains financial transactions and other on	(14)	1 196 ,	703	538	718
income Total	15 336 ,	15 600 ,	15 935 ,	16 308 ,	16 632 ,
Operating expenses	(4 907) ,	(4 922) ,	(5 065) ,	(5 696) ,	(4 767) ,
operating	10	10	10	10	11
income	429	678	871	612	865
Net	,	,	,	,	,
loan-loss	(5	(4	(3	(3	(3
provisions	214)	990)	752)	588)	619)
Net	,	,	,	,	,
(losses) gains provisions Other and	(621)	(226)	(428)	(252)	(633)
Underlying profit before tax	4 594 ,	5 462 ,	6 691 ,	6 771 ,	7 612 ,
Underlying	2	3	3	4	4
consolidated	794	111	760	008	118
profit	,	,	,	,	,
Underlying	2	2	3	3	3
attributable	526	792	386	583	704
profit	,	,	,	,	,

Chile (EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net interest income	448	425	420	494	497
income Net fee	92	74	74	94	95
(losses) Gains financial transactions and other on	12	85	38	6	22
income Total	553	584	532	594	614
Operating expenses	(230)	(228)	(223)	(219)	(236)
operating income Net	322	356	310	375	378
Net loan-loss provisions	(163)	(183)	(154)	(94)	(100)
(losses) Other gains and provisions	1	(2)	13	4	(1)
Underlying profit before tax	160	171	169	285	277
Underlying consolidated profit	138	129	125	236	222
Underlying attributable profit	97	86	86	163	153

Chile (CLP mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
interest income Net	397 015 ,	384 057 ,	383 394 ,	447 669 ,	433 780 ,
Net fee income	81 770 ,	67 170 ,	67 421 ,	85 452 ,	82 698 ,
(losses) Gains financial transactions and other on	10 853 ,	76 628 ,	35 003 ,	5 316 ,	19 479 ,
Total income	489 638 ,	527 855 ,	485 818 ,	538 437 ,	535 956 ,
Operating expenses	(204 237) ,	(205 998) ,	(203 043) ,	(198 727) ,	(205 743) ,
operating income Net
	285 401 ,	321 857 ,	282 775 ,	339 710 ,	330 213 ,
Net loan-loss provisions	(144 587) ,	(165 302) ,	(140 381) ,	(85 889) ,	(87 495) ,
(losses) Other gains and provisions	739	(1 905) ,	11 526 ,	3 859 ,	(1 155) ,
Underlying profit before tax	141 553 ,	154 650 ,	153 920 ,	257 680 ,	241 563 ,
Underlying consolidated profit	122 619 ,	116 749 ,	114 468 ,	213 738 ,	193 497 ,

Argentina (EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net interest income	241	261	218	192	204
fee income Net	76	56	70	71	74
(losses) Gains financial transactions and other on	1	(8)	(14)	(36)	(16)
income Total	318	310	274	226	262
Operating expenses	(186)	(153)	(152)	(141)	(171)
operating income Net	132	157	122	85	92
Net loan-loss provisions	(75)	(57)	(46)	(48)	(14)
(losses) Other gains and provisions	(14)	(18)	(17)	(22)	(34)
Underlying profit before tax	44	82	59	15	44
Underlying consolidated profit	34	75	52	18	46
Underlying attributable profit	34	75	52	18	45

Argentina (ARS mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net	16	22	24	29	22
interest	991	846	646	613	035
income	,	,	,	,	,
Net	327	132	611	10	977
fee	5	5	7	109	7
income	,	,	,	,	,
(losses) Gains financial transactions and other on	89	(595)	(1 349) ,	(4 047) ,	(1 686) ,
income Total	22 407 ,	27 384 ,	30 908 ,	35 674 ,	28 326 ,
Operating expenses	(13 112) ,	(13 756) ,	(17 093) ,	(21 259) ,	(18 420) ,
Net	9	13	13	14	9
operating	295	628	815	416	906
income	,	,	,	,	,
provisions	(5	(5	(5	(7	(1
Net	266)	207)	417)	430)	503)
loan-loss	,	,	,	,	,
(losses) Other gains and provisions	(953)	(1 546) ,	(1 821) ,	(2 933) ,	(3 691) ,
Underlying profit before tax	3 076 ,	6 875 ,	6 578 ,	4 052 ,	4 711 ,
Underlying	2	6	807	4	4
consolidated	421	276	5	089	918
profit	,	,	,	,	,
Underlying	2	6	759	047	888
attributable	405	234	5	4	4
profit	,	,	,	,	,

Other South America (EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
interest income Net	106	107	91	94	93
Net fee income	40	34	40	43	41
(losses) Gains financial transactions and other on	16	9	11	19	7
Total income	162	149	143	157	141
Operating expenses	(72)	(65)	(70)	(78)	(90)
operating income Net	90	85	73	79	51
Net loan-loss provisions	(21)	(27)	(19)	(20)	(20)
(losses) Other gains and provisions	(2)	(2)	1	(0)	(1)
Underlying profit before tax	67	55	55	59	30
Underlying consolidated profit	52	43	43	45	14
Underlying attributable profit	52	43	43	45	14

Other South America (Constant EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
interest income Net	89	97	89	93	93
Net fee income	35	32	39	42	41
(losses) Gains financial transactions and other on	14	8	10	19	7
Total income	138	136	138	154	141
Operating expenses	(62)	(60)	(68)	(77)	(90)
operating income Net	76	76	70	77	51
Net loan-loss provisions	(17)	(24)	(18)	(19)	(20)
(losses) Other gains and provisions	(2)	(2)	1	(0)	(1)
Underlying profit before tax	57	50	53	58	30
Underlying consolidated profit	44	38	40	44	14
Underlying attributable profit	44	38	41	44	14

Digital Consumer Bank (EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
interest income Net	1 088 ,	1 054 ,	1 048 ,	1 073 ,	1 056 ,
Net fee income	192	163	211	205	188
(losses) Gains financial transactions and other on	11	(4)	50	74	59
Total income	1 291 ,	1 214 ,	1 309 ,	1 352 ,	1 304 ,
Operating expenses	(596)	(552)	(585)	(596)	(600)
operating income Net	695	662	724	756	703
Net loan-loss provisions	(331)	(200)	(222)	(204)	(166)
(losses) Other gains and provisions	40	23	(20)	6	(31)
Underlying profit before tax	404	485	482	558	506
Underlying consolidated profit	297	356	357	424	372
Underlying attributable profit	234	273	281	345	291

Digital Consumer Bank (Constant EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
interest income Net	1 085 ,	1 065 ,	1 056 ,	1 082 ,	1 056 ,
Net fee income	192	164	211	205	188
(losses) Gains financial transactions and other on	11	(4)	50	75	59
Total income	1 287 ,	1 225 ,	1 317 ,	1 362 ,	1 304 ,
Operating expenses	(594)	(557)	(588)	(600)	(600)
operating income Net	693	669	729	762	703
Net loan-loss provisions	(330)	(202)	(224)	(208)	(166)
(losses) Other gains and provisions	40	23	(20)	7	(31)
Underlying profit before tax	403	490	485	561	506
Underlying consolidated profit	296	360	359	427	372

Corporate Centre (EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net interest income	(304)	(354)	(371)	(345)	(324)
Net fee income	(9)	(6)	(11)	(3)	(5)
(losses) Gains financial transactions and other on	9	47	110	96	(41)
Total income	(304)	(313)	(271)	(252)	(370)
Operating expenses	(85)	(82)	(82)	(80)	(79)
operating income Net	(389)	(395)	(353)	(333)	(449)
Net loan-loss provisions	(3)	(8)	(16)	(4)	(154)
(losses) gains provisions Other and	(20)	(370)	(12)	(9)	(33)
Underlying profit before tax	(413)	(773)	(381)	(345)	(635)
Underlying consolidated profit	(937)	(188)	(330)	(389)	(527)
Underlying attributable profit	(1 031) ,	(94)	(330)	(389)	(527)

Retail Banking (EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net interest income	8 004 ,	272 7 ,	280 7 ,	500 7 ,	472 7 ,
income Net fee	2 058 ,	1 536 ,	1 707 ,	1 685 ,	1 709 ,
(losses) Gains financial transactions and other on	108	263	444	165	355
income Total	10 171 ,	9 071 ,	9 431 ,	9 349 ,	9 536 ,
Operating expenses	(4 632) ,	(4 191) ,	(4 183) ,	(4 280) ,	(4 157) ,
operating income Net	5 538 ,	4 880 ,	5 248 ,	5 069 ,	5 378 ,
Net loan-loss provisions	(3 890) ,	(2 862) ,	(2 465) ,	(2 415) ,	(1 783) ,
(losses) Other gains and provisions
	(343)	(219)	(267)	(409)	(405)
Underlying profit before tax	1 306 ,	1 799 ,	2 516 ,	2 246 ,	3 190 ,
Underlying consolidated profit	873	1 242 ,	1 633 ,	1 594 ,	2 143 ,

Retail Banking (Constant EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
interest income Net	7 166 ,	7 003 ,	7 263 ,	7 563 ,	7 472 ,
Net fee income	1 824 ,	1 484 ,	1 691 ,	1 688 ,	1 709 ,
(losses) Gains financial transactions and other on	137	235	426	141	355
Total income	9 127 ,	8 723 ,	9 380 ,	9 392 ,	9 536 ,
Operating expenses	(4 233) ,	(4 063) ,	(4 183) ,	(4 320) ,	(4 157) ,
operating income Net	4 894 ,	4 660 ,	5 197 ,	5 072 ,	5 378 ,
Net loan-loss provisions	(3 469) ,	(2 714) ,	(2 491) ,	(2 456) ,	(1 783) ,
(losses) Other gains and provisions	(300)	(215)	(267)	(420)	(405)
Underlying profit before tax	1 125 ,	1 730 ,	2 439 ,	2 196 ,	3 190 ,
Underlying consolidated profit	765	1 204 ,	1 597 ,	1 567 ,	2 143 ,
Underlying attributable profit	596	1 007	1 345	1 289	1 836

Corporate & Investment Banking (EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net interest income	677	705	771	765	720
Net fee income	402	405	360	375	466
(losses) Gains financial transactions and other on	217	300	242	113	469
income Total	1 297 ,	1 410 ,	1 373 ,	1 253 ,	1 655 ,
Operating expenses	(528)	(499)	(488)	(523)	(526)
Net operating income	769	910	885	730	1 130 ,
loan-loss provisions Net	(6)	(239)	(40)	(185)	(47)
(losses) Other gains and provisions	(15)	(28)	(20)	(72)	(25)
Underlying profit before tax	748	644	825	472	1 058 ,
Underlying consolidated profit	528	465	585	339	740
Underlying attributable profit	494	434	554	316	704

Corporate & Investment Banking (Constant EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net interest income	605	673	764	775	720
fee income Net	364	393	355	379	466
(losses) Gains financial transactions and other on	181	270	251	129	469
income Total	1 150 ,	1 337 ,	1 370 ,	1 282 ,	1 655 ,
Operating expenses	(488)	(486)	(488)	(526)	(526)
operating income Net	662	851	882	756	1 130 ,
Net loan-loss provisions	(5)	(237)	(42)	(183)	(47)
(losses) Other gains and provisions	(14)	(27)	(20)	(67)	(25)
Underlying profit before tax	643	587	820	506	1 058 ,
Underlying consolidated profit	457	425	581	362	740
Underlying attributable profit	428	397	551	338	704

Wealth Management & Insurance (EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
interest income Net	109	93	92	100	88
Net fee income	308	269	279	296	297
(losses) Gains financial transactions and other on	133	99	102	149	117
Total income	550	462	474	545	502
Operating expenses	(237)	(212)	(207)	(216)	(220)
operating income Net	313	250	266	329	281
Net loan-loss provisions	(6)	(6)	(11)	(5)	(5)
(losses) Other gains and provisions	(1)	(2)	(3)	7	(3)
Underlying profit before tax	307	242	252	331	273
Underlying consolidated profit	232	186	193	249	206
Underlying attributable profit	222	179	184	238	197

Wealth Management & Insurance (Constant EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net interest income	99	88	92	101	88
Net fee income	290	263	277	296	297
(losses) Gains financial transactions and other on	121	98	102	149	117
income Total	511	449	472	546	502
Operating expenses	(222)	(206)	(207)	(216)	(220)
Net operating income	289	243	265	330	281
provisions Net loan-loss	(6)	(6)	(11)	(5)	(5)
(losses) Other gains and provisions	(1)	(2)	(3)	7	(3)
Underlying profit before tax	282	235	251	332	273
Underlying consolidated profit	213	181	191	250	206
Underlying attributable profit	204	173	183	239	197

PagoNxt(EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Net interest income	0	(1)	0	(0)	(1)
Net fee income	94	78	88	103	81
(losses) Gains financial transactions and other on	7	(3)	(8)	(2)	(14)
income Total	101	75	81	100	67
Operating expenses	(95)	(92)	(113)	(142)	(136)
Net operating income	5	(18)	(33)	(42)	(69)
provisions Net loan-loss	(4)	(3)	(3)	(2)	(2)
(losses) Other gains and provisions	7	(6)	(1)	(2)	(2)
Underlying profit before tax	8	(26)	(37)	(46)	(73)
Underlying consolidated profit	(1)	(27)	(34)	(55)	(72)
Underlying attributable profit	(1)	(27)	(33)	(55)	(72)

PagoNxt(Constant EUR mn)

	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
interest income Net	0	(0)	0	(0)	(1)
Net fee income	74	73	87	101	81
(losses) Gains financial transactions and other on	7	(3)	(7)	(2)	(14)
Total income	81	71	80	99	67
Operating expenses	(83)	(88)	(111)	(141)	(136)
operating income Net	(2)	(17)	(32)	(42)	(69)
Net loan-loss provisions	(3)	(3)	(3)	(2)	(2)
(losses) Other gains and provisions	5	(5)	(1)	(2)	(2)
Underlying profit before tax	(0)	(25)	(36)	(46)	(73)
Underlying consolidated profit	(5)	(27)	(33)	(55)	(72)
Underlying attributable profit	(5)	(27)	(33)	(55)	(72)

Appendix

Primary segments and other countries

Secondary segments

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
• ❑ HTC&S: Held to collect and sell
• ❑ 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: Credit impaired loans and advances to customers, customer guarantees and customer commitments granted / total risk. Total risk is defined as: normal and non-performing 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 Credit impaired loans and advances to customers, customer guarantees and customer commitments granted
• ✓ 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

CAPITALIZATION

✓ 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 4 months from December to March.

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).

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