Documentos de Académico
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November 2009
Important information
Banco Santander, S.A. ("Santander") cautions that this presentation contains forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995. These forward-looking statements are found in various places throughout this presentation and include, without limitation, statements concerning our future business development and economic performance. While these forward-looking statements represent our judgment and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to: (1) general market, macro-economic, governmental and regulatory trends; (2) movements in local and international securities markets, currency exchange rates, and interest rates; (3) competitive pressures; (4) technological developments; and (5) changes in the financial position or credit worthiness of our customers, obligors and counterparties. The risk factors and other key factors that we have indicated in our past and future filings and reports, including those with the Securities and Exchange Commission of the United States of America (the SEC), could adversely affect our business and financial performance. Other unknown or unpredictable factors could cause actual results to differ materially from those in the forwardlooking statements. The information contained in this presentation is subject to, and must be read in conjunction with, all other publicly available information, including, where relevant any fuller disclosure document published by Santander. Any person at any time acquiring securities must do so only on the basis of such person's own judgment as to the merits or the suitability of the securities for its purpose and only on such information as is contained in such public information having taken all such professional or other advice as it considers necessary or appropriate in the circumstances and not in reliance on the information contained in the presentation. In making this presentation available, Santander gives no advice and makes no recommendation to buy, sell or otherwise deal in shares in Santander or in any other securities or investments whatsoever. No offering of Securities shall be made in the United States except pursuant to registration under the U.S. Securities Act of 1933, as amended, or an exemption therefrom. Nothing contained in this presentation is intended to constitute an invitation or inducement to engage in investment activity for the purposes of the prohibition on financial promotion in the U.K. Financial Services and Markets Act 2000. Note: Statements as to historical performance, historical share price or financial accretion are not intended to mean that future performance, historical share price or future earnings (including earnings per share) for any period will necessarily match or exceed those of any prior year. Nothing in this presentation should be construed as a profit forecast.
Agenda
Santander at a glance
2009 Performance Appendix: markets financing Other appendixes
# 1 in the Eurozone
Santanders model
1
Mexico
Ranking1: 3rd Mkt. share1: 15% Branches: 1,087 Customers: 8.6 mill.
Brazil6
Ranking1: 3rd Mkt. share1: 10% Branches: 3,609 Customers: 21 mill.
Spain2
Ranking1: 1st Mkt. share1: 17% Branches: 4,773 Customers: 11.2 mill.
Chile
Ranking1: 1st Mkt. share1: 20% Branches: 502 Customers: 3.2 mill.
Portugal2
Ranking1: 4th (5) Mkt. share1: 10% Branches: 773 Customers: 2.4 mill.
Santander Consumer4
Branches: 308 Dealers: > 100,000 Customers: 13.0 mill.
Data as of 30/09/2009
(1) Loans + deposits (balance sheet funds) + mutual funds (2) Santander Consumer not included (in Spain: 3.6 million customers and 79 branches; Portugal: 0.3 million customers and 7 branches) (3) Including new acquisitions ( B&B and A&L). Ranking 3rd by deposits (4) Present in 17 countries. Loyalty cards not included under customers (5) Third largest private bank in Portugal and first by profit in 2008 (6) Excluding public-sector banks.
Santanders model
United Kingdom
Mill.
+49%
235
250 252
254
372
419 374
Mill.
1,013 1,029
911
875
Q1'08 Q2
Q3
(*) Perimeter Q1: +60 mill.; Q2: +84 mill.; Q3: +75 mill.
Brazil
UK
constant US$ Mill.
+42%
16%
Brazil
630 574
573
635 491
717
815
27%
SCF+Portugal
10%
+77%
20% 15%
Other Latam
Q1'08 Q2
Q3
Q4 Q1'09 Q2
Q3
253
373
314
12%
Global Europe
Other Latam
constant US$ Mill.
Venezuelas disposal
-20%
591 588
643
582 606
Q1'08 Q2
Q3
Q4 Q1'09 Q2
Q3
531
512
Q1'08 Q2
Q3
Q4 Q1'09 Q2
Q3
(*) Over 9M09 operating areas attributable profit excluding the negative EUR 29 million from Sovereign.
Santanders model 3
Efficiency as an objective: we believe in improving our efficiency, year after year
Group efficiency ratio*
In percentage
Continental Europe
35.4%
-2.9 p.p.
United Kingdom
40.7%
-5.5 p.p.
44.6 41.3
40.0
Latin America
37.0%
-6.3 p.p.
Sovereign
62.8%
[74.5% in Q109]
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 9M'09
Perimeter
(*) Efficiency ratio with amortisations. Figures from 2004 on according to IFRS 2005 includes Abbeys incorporation (efficiency: 62.2%)
Santanders model 3
backed by our IT leadership and Operational and Technological Integration
IT Global (Partenon, Altair) Shared operating centres Global units
Global unit
Global unit
Local unit
Local unit
Local unit
Santanders model
10
Foreseeable risk: balanced lending portfolio, good exposure Customer lending structure (%)
By country
LatAm 14%
Others Brazil 8% P. Rico 1% 1% Mexico 2% Chile 3% Other EU 7% Portugal 5% Spain 36%
A 3% AA 6%
BBB 9%
Rest 1%
Europe 81%
UK 32%
AA+/AAA 81%
Santanders model
11
Against an adverse economic backdrop, Santander maintained good credit quality levels in all areas
NPLs and coverage. Grupo SAN
Sep.09 Percentages
NPLs
4.20% 2.98% 1,65%
1.24
1.43
1.71
2.04
2.49
2.82
3.03
Spain
UK
Latam
134
Coverage ratios
120 105 91
Sep.09
80
72
73
which will be strengthened with an additional EUR 1.4 billion of generic provisions in the Group and in Spain
Santanders model
12
Balance sheet strength: we offer better credit quality vs. peers and in the main markets where we operate
Group ratios (Jun.09)
NPLs
4.40% 2.82%
Spain
NPLs in %
Coverage
72% 58%
4.20 2.56
4.54
4.90
(August)
1.11 0.88
2.98
1.08
Grupo SAN
SAN
European peers*
United Kingdom**
NPLs in %
Latin America**
NPLs in %
Sector
2.39 2.43 1.21 1.33 1.44 1.88
Sector
4.5% 4.6% 5.0% 5.4%
5.9%
1.10
4.3%
4.5% 4.0%
0.69
0.72
0.72
0.77
0.93
1.13
1.34
1.34
3.7%
Dec'07 Mar'08
5.0% 3.9%
Jun'08
5.2%
Grupo SAN
4.1%
Sep'08
4.5%
Grupo SAN
Mar'09 Jun'09
Dec'08
(*) Average European banks included in our peer group (**) Data in local criteria, on a like-for-like basis with the sector sources. Latam series restructured because of Venezuelas disposal and estimate of regulatory changes in Chile
Santanders model
13
Mortgages SAN UK
Mortgage market*
Mortgages SAN UK
Mortgage market*
SAN UK UPLs
Market UPLs*
New NPL and recoveries management area as a business unit Acquisition of assets: risk cancellation, asset assessment done
and release of generic provisions expected to last till 2011 Limited impact on results
SAN Market*
0% 4%
1% 12-13%
0.06% 0.19%
(*) Markets figures are the latest available (Aug09 in Spain). UK ones (SAN and markets) as of Jun09 and under local criteria (CML: mortgages)
Santanders model
Balance 4 quarterly,sheet strength: strong generation of organic capital, 10/15 bp boosted by the latest operations bringing core capital to 8.4%*
Core capital performance
IPO Brazil: +60 bp Scrip dividend (e): approx.10 bp
14
7.5%
7.3%
7.5%
7.7%
6.1%
6.3% 5.9%
Generic provisions (EUR 7.5 bill.) not included in core Without support from portfolios reclassification
2005
2006
2007
Sep'09 Proforma
Note: 2008 and 2009 according to BIS II, previous data according to BIS I
(*) Including capital increase in Brazil (before green shoe) and the capital increase for the payment of Santander Dividendo Eleccin, to be done in Q409.
Santanders model
15
Retail loans: 90% of customer loans High collateral: 58% secured loans Deposits w/o Repos increase (excluding exchange rate impact): EUR 98 bill.
Approx. 90% of loans without securitisations sold are financed by deposits excluding Repos + equity* > EUR 125 bn. central banks eligible assets
Santanders model
16
AA AA Aa2 AA
A/B B-
S&P
Fitch
Moody's
DBRS
Dec-00 Dec-01
Dec-02 Dec-03
Dec-04 Dec-05
Santanders model
17
Santander in 2008 has strengthened its business portfolio in core markets ... BRAZIL UNITED KINGDOM
Points of sale x2: 1,300 branches PFS market share: >10% TOP 3 by deposits Synergies*: 0.2 bill.
SC GERMANY
6 million customers 185 branches Leader in consumer business Synergies*: 0.1 bill.
Points of sale x2: 3,551 branches + PABs Market share: >10% TOP 3 private bank Synergies*: R$ 2.7bill.
Entering USAs Northeast with Sovereign (January 2009) Regions potential: SOV footprint = 80% of Spains deposits SOVs franchise potential: US$ 47 Bill. deposits, 747 branches, Synergies*: US$ 0.2 bill. ... offering us growth potential in results in the coming years (business + synergies)
(*) Estimated synergies by the third year
18
2008* costs
Cost savings
-108
1,538
2008* costs 2009 theoretical cost Cost savings 9M09 cost annualised
2008
1,430
2009(e)
Germany synergies
EUR million
570 +1% 2008* costs 2009 theoretical cost Cost savings 9M09 cost annualised 576 56 520
(**) 70 mill. from A&L and approx. 25% B&B costs in direct distribution channels (***) Including contribution to deposit guarantee fund. Data under US GAAP
Agenda
19
Santander at a glance
2009 Performance
Appendix: markets financing Other appendixes
20
Attributable profit*
17,7 14,8
EUR billion
8,9 8,1
CAGR: +20%
11,2 8,8 5,9 5,6 5,7 6,4 1,6 1,3
CAGR: +22%
5,2 3,6 2,3 2,5 2,6 2,2
6.6
'98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08
'98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08
Note.- Figures from 2004 on according to IFRS. (*) Attributable profit data without extraordinary capital gains and allowances
with high generation of recurring profits, with improved quarterly performance ...
Groups ordinary* attributable profit
EUR million
21
-2.8%
6,935
+0.7%
6,740
2,423 2,096
2,221
Q1'08
Q2
Q3
Q4
Q1'09
Q2
Q3
9M'08
9M'09
placing us on track to reach the targets announced for the whole year
(*) Excluding impact from the latest issues exchange operations, securitisations repurchase and Brazils IPO
The ordinary P&L highlights the resilience of the underlying business and the management focus for the year
Var. 9M09/9M08
22
% excl. forex
9M09
19,478 6,828 3,065 29,371 -12,139 17,232 -7,200 10,032 6,740 0.7907
9M08
15,674 6,885 2,842 25,401 -11,242 14,159 -4,667 9,492 6,935 0.9695
and perimeter
Net interest income Fees Trading gains; other* Gross income Operating expenses Net operating income Loan-loss provisions Net op. income after loan-loss provisions Ordinary attrib. profit Basic EPS (in euro)
+24.3 -0.8 +7.8 +15.6 +8.0 +21.7 +54.3 +5.7 -2.8 -18.4
+17.6 -5.7 +16.2 +11.1 +0.0 +19.9 +44.6 +7.8 -1.6 n.s.
B C
with no impact from extraordinary capital gains, allocated to strengthening balance sheet
(*) Including dividends, equity method and other results. Trading gains change o/9M08: +21.6%
23
+10.6
+11.3
+10.7
Q1 '09
H1 '09
9M '09
Management of expenses
% var. o/ same period previous year
+1.8 +0.3
Q1 '09 H1 '09
+7.8
9M '09
+67.8
+51.2
+44.6
Q1 '09
H1 '09
9M '09
The most commercial revenues remained solid in the quarter, mainly backed by net interest income
Net interest income + fees and insurance activity
24
EUR billion
7.3
Fees and insurance activity
2.4
7.6
2.3
7.9
2.4
7.5
2.2
8.3
2.1
9.1
2.2
9.2
Perimeter
2.1
4.9
5.3
5.5
5.3
5.4
5.9
6.1
Q1'08
Q2
Q3
Q4
Q1'09
Q2
Q3
Continental Europe
Billion
United Kingdom
Million
Latam
Constant US$ Billion 5.1 5.2 4.9 4.7
4.0
3.8
1,038 1,097 731 621 625 674 1,133
5.4 5.1
5.5
Q1'08 Q2
Q3
Q4 Q1'09 Q2
Q3
Q1'08 Q2
Q3
Q4 Q1'09 Q2
Q3
Q1'08 Q2
Q3
Q4 Q1'09 Q2
Q3
Strict management of expenses and good evolution of the envisaged synergies resulted in
expenses virtually flat in all units while declining in Brazil and improved efficiency* ratios
Variation o/ 9M08
25
Santander Network Banesto SCF Portugal United Kingdom (in ) Brazil (in reales) Mexico (in pesos) Chile (in pesos)
Continental Europe
35.4%
-2.9 p.p.
UK
40.7%
-5.5 p.p.
Latin America
37.0%
-6.3 p.p.
Sovereign
Group
Group
41.3%
-3.0 p.p.
26
EUR million
+44%
2,417
2,111
2,574
2,256
1,346
1,631
2,000
Q1'08
Q2
Q3
Q4
Q1'09
Q2
Q3
Generic provisions
EUR million
Q1'08
Q2
Q3
Q4
Q1'09
Q2
Q3
-175
-96
Perimeter impact
(*) Including country-risk
-193
-222
Q1'08
Q2
Q3
Q4
Q1'09
Q2
Q3
Capital gains with no impact on profits. They will be fully allocated to strengthening the balance sheet
27
724
-987 -420
Securitisations purchase
99
Properties purchased
(Fund: EUR 600 mill.; 15% book value)
IPO Brazil
1,424
2,247
-2,247
28
3,837
15,727 16,619
10,550 10,550
3,431
8,627 9,302
2,960 3,275
8,905 6,682
9,564
Generic
(*) Including allocation of capital gains from exchange operations and securitisations purchase in Q309 and from IPO in Brazil in October
D and the recurrent business maintaining the high capacity to absorb the larger provisions, placing ...
Grupo Santander performance
%
29
12,8 2.3 2.1 2.0 1.9 1.4 1.3 1.1 0.8 0.7 0.5 0.5 0.4 0.3 0.3 0.0
3.43 3.16
Net operating income / avg. loans
C2 SAN C3
2.70 2.30
2.05 2.05 2.01
C4 C5 C6 C7 C8
Operating results
C9 C10 C11
1.78
1.42
9M'09*
Negative data
* Annualised data
C19
Note: Peers Group are 19 large banks that because of their size, charateristics and/or degree of competition are the reference group to surpass: Banco Ita, Bank of America, Barclays, BBVA, BNP Paribas, Citigroup, Credit Agricole, HSBC, Intesa Sanpaolo, JP Morgan, Lloyds, Mitsubishi, Nordea, Royal Bank of Canada, RBS, Societe Generale, UBS, Unicredito, Wells Fargo.
30
31
Excluding perimeter
+16.3%
2,605
2,769 2,620
Gross income
2,176
+10%
Retail 1,833 banking
Expenses Net operating income Net oper. inc. net of LLPs Attributable profit
+7.7%
0%
Q1'08
Q2
Q3
Q4
Q1'09
Q2
Q3
Attributable profit
+21.6%
+16%
EUR million
1,210
1,133
1,089
1,236
1,289
1,290
1,368
1,358
1,329
1,291
+16.5%
+15%
+16.1%
+15%
Q1'08 Q2 Q3 Q4 Q1'09 Q2 Q3
Perimeter impact
32
4,074 +1.8%
1,948
+4.6% +10%
1,172
+7.6% +13%
609
+4.2% +3%
3,125
+30.2%
2,272
+31.6%
483
-13.9%
960
+4.7%
555
+7.5%
412
+0.3%
Other
1,490
GBM
2,275 +54.8%
1,125
GBM
1,499
+85.3%
820
GBM
941 +96.4%
33
Excluding perimeter
686
Total 374 Global businesses Retail
317 Q1'08
745
735
Gross income
+65.4%
+24%
392
422
501
571 595 630
322 Q2
354
373
Expenses Net operating income Net oper. inc. net of LLPs Attributable profit
+45.8%
+1%
Q3
Q4
Q1'09
Q2
Q3
Attributable profit
+82.3%
+45%
Sterling million Perimeter impact
372
419
335
374
299
+61.6%
+31%
235
250
252
254
312
+57.9%
+28%
Q1'08 Q2 Q3 Q4 Q1'09 Q2 Q3
34
3,874
Excluding forex
+15%
Gross income
-6.0%
Expenses Net operating income Net oper. inc. net of LLPs Attributable profit
-19.6%
-2%
Q1'08 Q2 Q3 Q4 Q1'09 Q2 Q3
+4.4%
+28%
Attributable profit
Constant US$ million
1,221
1,142
-10.0%
+10%
1,162
1,074
1,217
1,141
1,240 1,073
1,136 851
1,249
1,243
1,326
-12.1%
+6%
Q1'08 Q2 Q3 Q4 Q1'09 Q2 Q3
Venezuela impact
35
11,516 +19%
Mexico
2,491
+1%
1,673
+2%
480
-25%
Chile
1,825
+9%
1,221
+13%
533
-1%
Other
1,886
+17%
991
+35%
527
+30%
108
-55%
Brazil 9M09
Higher profit for third straight quarter. Sound revenues and cost cuts offset the larger provisions Attributable profit: US$ 2,167 mill.
(EUR 1,589 mill.)
Var. 9M09 / 9M08 in constant US$ (%)
36
Gross income
+18.8%
2,191
1,318
1,326
Expenses
-4.0%
Q1'08 Q2 Q3 Q4 Q1'09 Q2 Q3*
Net operating income Net oper. inc. net of LLPs Attributable profit
Attributable profit
+37.9%
Constant US$ million
630
+13.0%
574
573
+22.0%
Q1'08 Q2 Q3 Q4 Q1'09 Q2 Q3
Note: 2008 proforma with Banco Real (*) Including capital gains from Visanet green shoe (US$131 mill.) offset with generic provisions
37
Gross income
501
+9%
544
+3% -3%
561
374
-11%
332
323
US$ million
Attributable profit
127
Q1'09*
+66%
212
Q2'09
+12%
238
Q3'09
-10 -25
Q1'09 Q2'09
-4
Q3'09
238 183
221
2.94 2.63
Q1'09*
Q2'09
Q3'09
Mar'09
Jun'09
Sep'09
Note: data under Group criteria (*) February-March data at a quarterly rate
In short:
Amid a difficult banking scenario, Santander was able to .
Maintain high profits
Quarterly recurring profit around EUR 2.2 billion Obtain value from diversification Obtain value from integrations and synergies
38
Generic provisions proforma: EUR 7.5 Bill. Core capital Sep.09 proforma: 8.4%
Surpassing peers and the market in profitability in the long-, medium- and short term
All of it while remaining on track to reach the targets announced for the whole year
Agenda
39
40
Financing Strategy
The Parent Bank does not supply subsidiaries with funding: there are very rare and limited exceptions like SCF Subsidiaries budget their liquidity needs, assessing the funding opportunities in their own retail and wholesale markets. In coordination with the Parent Bank, they plan their issuances and securitisations. Intergroup funding can be made either with deposits, loans, or by purchasing the securities issued, and always at market prices, according to the rating and the maturity. The availability of assets that are eligible for discount at the ECB are an additional liquidity resource that is available in case of crisis scenarios.
41
42
Santanders capital markets funding is carried out through a diversified approach by markets, tenor and instruments
Short Term
ECP: EUR 25 Billion Programme USCP: USD 6 Billion Programme
43
Groups medium and long term issues. Amount outstanding (Ex-Latam) EUR Million
31/12/2007 Preferred Shares Subordinated Debt Senior Debt Covered Bonds Other Total M & LTerm Issues Securitisations 7,507 25,306 70,057 49,025 12,944 164,839 99,760 31/12/2008 7,914 24,582 71,983 49,509 18,034 172,022 158,153 30/09/2009 9,054 23,864 60,064 53,124 24,307 170,413 155,442
Note: From Dec.08, includes Alliance & Leicester; From May.09 includes Sovereign
44
COVERED BONDS
PREFERRED SHARES
SENIOR
SUBORDINATED
STRUCTURED DEP.
45
Appendix
Units
46
Continental Europe
Main units performance Spreads performance NPLs and coverage ratio performance
47
Results
Gross income
Base 100: Q108
Efficiency ratio
% var. 9M09/9M08
+20%
2.86%
100 100
-0.4% Loans Deposits
9M'08 9M'09
Q1'08 Q2
39.2%
+1.8 +0.7
38.7%
Q3
Q4
Q1'09
Q2
9M'09
% recoveries / entries
814
815
69 59
75 78 74 66 62
804
867
859
648
574
736
754
725
652 +13.5%
Q1 '08 Q2
Q3
Q4 Q1 '09 Q2
Q3
Q1 '08
Q2
Q3
Q4
Q1 '09
Q2
Q3
Q1'08
Q2
Q3
Q4
Q1'09
Q2
Q3
Banesto 9M09
Management drivers
Revenues: spreads vs. lower growth
Volumes
Var. Sep09 / Sep08
48
Results
Gross income
Base 100: Q108
Efficiency ratio
% var. 9M09/9M08
41.5%
+4.6
39.8%
+1%
+0.4
-1%
Q1'08 Q2 Q3 Q4 Q1'09 Q2 Q3
Revenues Expenses
9M'08
9M'09
9M'08
9M'09
Loans
Deposits
*Retail Banking
355
369
366
353
378
401
394 +7.7%
299
292
259
297
308
299
+2.5%
Q1'08
Q2
Q3
Q4
Q1'09
Q2
Q3
49
Results
Gross income
Base 100: Q108
Efficiency ratio
% var. 9M09/9M08
Volumes
Var. Sep09 / Sep08
+34% +6%
100 111
Depo sits*
Q1'08 Q2 Q3 Q4
28.0%
+26.8 *
27.3%
Q1'08 Q2 Q3 Q4 Q1'09 Q2 Q3
Lo ans *
Q1'09
Q2
Q3
Revenues Expenses
9M'08 9M'09
Expenses: flat on a like-for-like basis Risks: large provisions and NPLs as projected
87% 86% 89% 90% 92%
Coverage NPLs
3.87%
Sep'08
4.18%
Dec'08
4.64%
Mar'09
5.14%
Jun'09
5.46%
770 +24.8%*
Sep'09
594 516
617
307
253
196
244
253
264
+4.3%**
100
96
89
71%
67%
67%
66%
Q1'08 Q2 Q3 Q4 Q1'09 Q2 Q3
(*) Excl. perimeter: +12% (**) Excl. perimeter: -9%
Q4'08
Q1'09
Q2
Q3
Q4'08
Q1'09
Q2
Q3
Portugal 9M09
Management drivers
Revenues: assets spreads, focus on deposits and SMEs growth
Volumes
Var. Sep09 / Sep08
50
Results
Gross income
Base 100: Q108
Efficiency ratio
% var. 9M09/9M08
43.7%
+2%
+3%
103 103
+4.7
42.2%
+1.2
Loans Deposits
9M'08 9M'09
Q1'08 Q2 Q3 Q4 Q1'09 Q2 Q3
Revenues Expenses
9M'08
9M'09
Loans: +2%
Var. Sep09 / Sep08
Savings: +5%
+25%
+1%
+7%
+1%
+3% -3%
Individuals
+4.0%
Expenses: remained virtually flat Risks: reduced provisions with NPL ratio under control (2%)
166
169
154
185
151
156
-7.7%
Q1'08
Q2
Q3
Q4
Q1'09
Q2
Q3
51
Q4
Deposits
Deposits
1.47
1.39
1.37
Q1'08
Q2
Q3
Q4
Q1'09
Q2
Q3
Q1'08
Q2
Q3 Loans
Q4
Deposits
52
Banesto
63% 2.82%
Sep'09
69% 2.59%
Jun'09
146%
106% 1.64%
Dec'08
85% 1.96%
Mar'09
73% 2.32%
Jun'09
70% 2.62%
Sep'09
1.36% 1.93%
Sep'08 Dec'08
1.18%
Sep'08
NPLs
Coverage
NPLs
Coverage
Santander Consumer
87% 86% 89% 90% 5.14% 92% 5.46%
Portugal
82% 77% 71% 65% 68%
3.87%
Sep'08
4.18%
Dec'08
4.64%
1.65%
Mar'09 NPLs Jun'09 Coverage Sep'09
1.72%
Dec'08
1.87%
Mar'09
2.13%
Jun'09 Coverage
2.04%
Sep'09
Sep'08
NPLs
(*) Santander Branch Network NPL ratio was 3.86% and coverage 52%
53
United Kingdom
Business performance Spreads performance Non-performing loans and coverage ratio performance
54
+74.3% 686
Q4 Q1'09 Q2 Q3
735
497
570
520
Efficiency ratio
314
334
334
345
+65.4 +45.8
Q1'08
Q2
Q3
Q4
Q1'09
Q2
Q3
46.2%
Revenues
Expenses
9M'08
9M'09
55
Deposits stock*
+14%
18% market share in gross new mortgage loans
+2%
154.6
158.1
123.0
140.2
Sep'08
Sep'09
Sep'08
Sep'09
Other
UPLs
Balances in Bill.
+1%
Securities portfolio
Balances in Bill.
23.9
24.1
-24%
6.1 4.6
15.0
-27%
11.0
Sep'08
Sep'09
Sep'08
Sep'09
Dec'08
Sep'09
Note: Data in local criteria. 2008 data including A&L (*) Including commercial, corporate and investments deposits (**) Performace impacted by Porterbrook disposal (balances: 2.1 bn)
56
57%
69%
56%
45% 1.54%
Jun'09 Coverage
48%(*)
0.66 Q1'08
0.70 Q2
0.77 Q3 Loans
0.88 Q4
0.78 Q2 Total
0.76%
0.58 Q3
Sep'08
1.04%
Dec'08
1.25%
Mar'09 NPLs
1.65%
Sep'09
Deposits
57
Latin America
Main units performance Spreads performance Non-performing loans and coverage ratio performance
58
Brazil 9M09
Management drivers
Revenues: spreads management in a lower growth
scenario of the countrys private-sector banks
Volumes
Var. Sep09 /Sep08 in local currency
59
Results
Gross income
Base 100: Q108
Efficiency ratio
% var. 9M09/9M08
45.6%
+2%
+2%
Lo ans
Q1'08 Q2 Q3 Q4 Q1'09 Q2 Q3
Q1'08 Q2 Q3 Q4 Q1'09 Q2 Q3*
-4.0
Revenues* Expenses
9M'08
9M'09
-4.0% Q2
-5.3% Q3
2,656
+55.1%
100
109 70
Q1'09 Q2
54%
1.003 Q3
789 Q4
45%
47%
51%
Q1'08 Q2 Q1'09 Q2 Q3*
Q4'08
Q3
Q4'08
Q1'09
Q2
Q3
Note: 2008 proforma with Banco Real (*) Including capital gains from Visanet green shoe (US$ 131 mill.) offset with generic provisions
Mexico 9M09
Management drivers
Revenues: Evolution conditioned by environment and decline in cards and consumer
Volumes
Var. Sep09/Sep08 in local currency
60
Results
Gross income
Base 100: Q108
Efficiency ratio
% var. 9M09/9M08
-13%
+6%
33.3%
32.8%
Lo ans
Q1'08 Q2 Q3 Q4 Q1'09 Q2 Q3
Q1'08 Q2 Q3 Q4 Q1'09 Q2 Q3
Revenues
Expenses 9M'08
9M'09
+2.1 %
+0.9%
2008
Q1 '09
Q2
553
100
97
99
254
283
290 +55.8% Q3
52%
45%
Q1'08 Q2
Q4'08 Q1'09 Q2 Q3
Q1'09 Q2
Q4'08
Q1'09
Q2
Q3
Chile 9M09
Management drivers
Revenues: good performance with customers but sharp negative impact from UF deflation
Volumes
Var. Sep09/Sep08 in local currency
61
Results
Gross income
Base 100: Q108
Efficiency ratio
% var. 9M09/9M08
132 132
4.74 4.38
127 128
-2% -6%
Lo ans Depo sits excl. Repo s
115 100
121
+8.6 +0.7
35.7%
Q1'08 Q2 Q3 Q4 Q1'09 Q2 Q3
Q1'08 Q2 Q3 Q4 Q1'09 Q2 Q3
Revenues Expenses
434
Net op. income Provisions Net op. income net of LLPs
436
418
418
350 296
385 -11.3%
210 Q1'08
228
315
295
232
264
259 -17.8%
100
110
81
65
32%
Q2
Q3
Q4
Q1'09
Q2
Q3
Q4'08
Q1'09
Q2
Q3
Q4'08
Q1'09
Q2
Q3
62
11.44 3.46 Q2
10.69 3.58 Q4
10.40 2.09 Q3
1.25 Q1'08
1.24 Q2
1.29 Q3 Loans
1.28 Q4
1.07 Q1'09
1.04 Q2 Total
0.87 Q3
Deposits
Deposits
Q1'08
Q2
Q3 Loans
Q4
Deposits
63
Mexico
128% 122% 3.04%
Jun'09 Coverage
221%
3.35%
Sep'08
3.58%
3.86%
4.75%
5.09%
Sep'09
2.06%
Sep'08
2.41%
Dec'08
2.80%
Mar'09 NPLs
2.45%
Sep'09
Chile
111% 102% 95% 94% 3.30%
Jun'09 Coverage
94% 3.38%
Sep'09
2.45%
Sep'08
2.64%
Dec'08
3.05%
Mar'09 NPLs
64
CORPORATE ACTIVITIES
Corporate Activities
Performance o/9M08: lower earnings (equity method, gains on financial transactions and dividends), rentals and Metrovacesa provision Attributable profit Corporate Activities (9M09 vs. 9M08 difference )
Main impacts: Dividends and equity Metrovacesa charge Lower gains on financial transactions Expenses (higher rentals) Other items and taxes Total impact on profit:
EUR mill.
65
66
SECONDARY SEGMENTS
Retail Banking
Strong resilience of retail banking to the environment, maintaining results sustainability
Retail Banking
Var. 9M09 / 9M08 (%) in EUR EUR million
67
Gross income
+16.6%
+10%
Expenses Net operating income Net oper. inc. net of LLPs Attributable profit
+9.9%
+0%
Q1'08
Q2
Q3
Q4
Q1'09
Q2
Q3
Attributable profit
+21.7%
+18%
EUR million
+8%
1,844 1,843 1,643 1,828 1,752 1,986
+13%
1,981
+0.6%
+0%
-1.8%
-3%
Q1'08
Q2
Q3
Q4
Q1'09
Q2*
Q3
Venezuela impact registered under discontinued operations. In Q109; 81 mill. , Q209: 1 mill.; Q309: 0 mill.
68
Gross income
+35.6%
628
605
Expenses -12.3%
Q1'08 Q2 Q3 Q4 Q1'09 Q2 Q3
Net operating income Net oper. inc. net of LLPs Attributable profit
+59.7%
EUR million
Attributable profit
879 672
+68.6%
533 394 379 435 634
+80.9%
Q1'08
Q2
Q3
Q4
Q1'09
Q2
Q3
69
1,430 1,266
Total
3,538
1,275 147
1,264
116
168
+37%
714
TOTAL
954
1,041 933
134 61
169
Trading 149
2,584
631 150 757
87 1,069
Customers 805
980 799
1,097
1,148
1,262
1,128
Q1'08
Q2
Q3
Q4
Q1'09
Q2
Q3
Corporate Banking*
+59%
1,668
1,046
9M'08
9M'09
70
-11%
325 328 327 315 290 278 292
100
69 69
86
Q1'08
Q2
Q3
Q4
Q1'09
Q2
Q3
Sep'08
Sep'09
Sep'08
Sep'09
71
Asset Management
Starting volumes recovery, still without impact on revenues
Managed assets (EUR billion) Expenses (EUR million)
= 9% of Groups revenues
139
-17%
115
D'08
M'09
J'09
S'09
9M'08
9M'09
136 115
Asset Mgmt. 41
43
105
36
115
39
123 106
21 19
89
8
Insurance 74
93 67
76
85
104
81
Q1'08
Q2
Q3
Q4
Q1'09
Q2
Q3
Sovereign
72
Sovereign
Spreads performance Non-performing loans and coverage ratio performance
73
Spreads
2.32 2.60 2.65
66%
1.88 1.91 0.69 Q2 Loans Deposits 1.86 0.79 Q3 Total
67%
68%
3.98%
Mar'09
4.34%
Jun'09 NPLs Coverage
4.82%
Sep'09
0.44 Q1'09
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