Banco Santander S A : Retail and Commercial Banking

30 April 2024

Retail & Commercial Banking

Q1'24

Important Information

Retail

Non-IFRS and alternative performance measures

This presentation contains financial information prepared according to International Financial Reporting Standards (IFRS) and taken from our consolidated financial statements, as well as 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, and other non-IFRS measures. The APMs and non-IFRS measures were calculated with information from Grupo Santander; however, they are neither defined or detailed in the applicable financial reporting framework nor audited or reviewed by our auditors. We use these APMs and non-IFRS measures when planning, monitoring and evaluating our performance. We consider them to be useful metrics for our management and investors to compare operating performance between periods. APMs we use are presented unless otherwise specified on a constant FX basis, which is computed by adjusting comparative period reported data for the effects of foreign currency translation differences, which distort period-on-period comparisons. Nonetheless, the APMs and non-IFRS measures are supplemental information; their purpose is not 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. APMs using ESG labels have not been calculated in accordance with the Taxonomy Regulation or with the indicators for principal adverse impact in SFDR. For further details on APMs and Non-IFRS Measures, including their 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 2023 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (the SEC) on 21 February 2024 (https://www.santander.com/content/dam/santander-com/en/documentos/informacion-sobre-resultados-semestrales-y-anuales-suministrada-a-la-sec/2024/sec-2023-annual-20-f-2023-en.pdf), as well as the section "Alternative performance measures" of

Banco Santander, S.A. (Santander) Q1 2024 Financial Report, published on 30 April 2024 (https://www.santander.com/en/shareholders-and-investors/financial-and-economic-information#quarterly-

results). Underlying measures, which are included in this document, 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 businesses included 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.

Non-financial information

This presentation contains, in addition to financial information, non-financial information (NFI), including environmental, social and governance-related metrics, statements, goals, commitments and opinions.

NFI is not audited nor reviewed by an external auditor. NFI is prepared following various external and internal frameworks, reporting guidelines and measurement, collection and verification methods and practices, which are materially different from those applicable to financial information and are in many cases emerging and evolving. NFI is based on various materiality thresholds, estimates, assumptions, judgments and underlying data derived internally and from third parties. NFI is thus subject to significant measurement uncertainties, may not be comparable to NFI of other companies or over time or across periods and its inclusion is not meant to imply that the information is fit for any particular purpose or that it is material to us under mandatory reporting standards. NFI is for informational purposes only and without any liability being accepted in connection with it except where such liability cannot be limited under overriding provisions of applicable law.

Forward-looking statements

Santander hereby warns that this presentation contains "forward-looking statements" as per the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such statements can be understood through words and expressions like "expect", "project", "anticipate", "should", "intend", "probability", "risk", "VaR", "RoRAC", "RoRWA", "TNAV", "target", "goal", "objective", "estimate", "future", "commitment", "commit", "focus", "pledge" and similar expressions. They include (but are not limited to) statements on future business development, shareholder remuneration policy and NFI.

2

Important Information

Retail

While these forward-looking statements represent our judgement and future expectations concerning our business developments and results may differ materially from those anticipated, expected, projected or assumed in forward-looking statements.

In particular, forward looking statements are based on current expectations and future estimates about Santander's and third-parties' operations and businesses and address matters that are uncertain to varying degrees and may change, including, but not limited to (a) expectations, targets, objectives, strategies and goals relating to environmental, social, safety and governance performance, including expectations regarding future execution of Santander's and third-parties' (including governments and other public actors) energy and climate strategies, and the underlying assumptions and estimated impacts on Santander's and third-parties' businesses related thereto; (b) Santander's and third-parties' approach, plans and expectations in relation to carbon use and targeted reductions of emissions, which may be affected by conflicting interests such as energy security; (c) changes in operations or investments under existing or future environmental laws and regulations; (d) changes in rules and regulations, regulatory requirements and internal policies, including those related to climate-related initiatives ; (e) our own decisions and actions including those affecting or changing our practices, operations, priorities, strategies, policies or procedures; and (f) the uncertainty over the scope of actions that may be required by us, governments and others to achieve goals relating to climate, environmental and social matters, as well as the evolving nature of underlying science and industry and governmental standards and regulations.

In addition, the important factors described in this presentation and other risk factors, uncertainties or contingencies detailed in our most recent Form 20-F and subsequent 6-Ks filed with, or furnished to, the SEC, as well as other unknown or unpredictable factors, could affect our future development and results and could lead to outcomes materially different from what our forward-looking statements anticipate, expect, project or assume.

Forward-looking statements are therefore aspirational, should be regarded as indicative, preliminary and for illustrative purposes only, speak only as of the date of this presentation, are informed by the knowledge, information and views available on such date and are subject to change without notice. Santander is not required to update or revise any forward-looking statements, regardless of new information, future events or otherwise, except as required by applicable law. Santander does not accept any liability in connection with forward-looking statements except where such liability cannot be limited under overriding provisions of applicable law.

Not a securities offer

This presentation and the information it contains does not constitute an offer to sell nor the solicitation of an offer to buy any securities.

Past performance does not indicate future outcomes

Statements about historical performance or growth rates must not be construed as suggesting that future performance, share price or results (including earnings per share) will necessarily be the same or higher than in a previous period. Nothing in this presentation should be taken as a profit and loss forecast.

Note: Quarterly series include adjustments relating to revenue sharing criteria between CIB and Retail & Commercial Banking to better reflect business dynamics of our new operating model with five global businesses as new primary segments; these adjustments do not affect results at the Group level, nor do they affect the full-year results of Retail & Commercial Banking and CIB. Quarterly series also include adjustments to some of the 2023 business volumes metrics in Retail & Commercial Banking, Digital Consumer Bank, CIB and Wealth Management & Insurance to better reflect our five global businesses' perimeters according to our new operating model; these adjustments do not affect business volumes metrics at the Group level.

3

Index

1

2

3

4

About us, Strategy	Results	Final remarks	Appendix
and Business

4

A new global business integrating our retail and commercial banking businesses globally, leveraging the scale of the Group and our local presence

KEY DATA	Q1'24	YoY Var.	One global business with local
Customer loans	€621bn	-2.0%	presence in 12 countries
Customer deposits	€642bn	+1.7%
Customer funds	€732bn	+2.9%
Attributable profit	€1,503mn	+21.6%
Efficiency ratio	41.1%	-3.9pp
RoTE	1	17.6%	+2.9pp
RWAs	€300bn	-1.9%
Cost of risk	1.03%	+0.1pp
Total customers	140mn	+3.9%
Active customers	76mn	+2.4%

Note: all references to variations in constant euros across the presentation include Argentina in current euros to mitigate distortions from hyperinflation.

Gross loans and advances to customers (excluding reverse repos) and deposits excluding repos.

1. Annualizing the impact of the temporary levy on revenue earned in Spain. Without annualizing it, RoTE was 15.6% (+2.3pp).

Retail

5

Driving growth and efficiency on the back of our new model and proprietary technology	Retail

Customer experience	Operational leverage				Global platform		2025 target
New digital onboarding and		New model and automation				Scale of new platform		c.17% RoTE
	reducing operational resources				17.6% Q1'24
products leading to an increase				(ODS-Gravity) reducing
	and driving increase in
in digital customers and					cost per technical transaction
	commercial focus in branches					<42% C/I
digital sales					and driving efficiencies
								41.1% Q1'24
Active			# of	# of non-commercial FTEs1
customers (mn)	products1 (k)	per mn total customers

Key

drivers

(1) Metrics cover all products and employees in the branch network in our 10 main countries.	6
Note: RoTE annualizing the impact of the temporary levy on revenue earned in Spain. Without annualizing it, RoTE was 15.6% (+2.3pp).

Loans fell 2% YoY mainly due to mortgage prepayments and decreases in SMEs and corporates in Europe, partially offset by higher loans in Mexico and Brazil

Retail

Loans (Constant € bn)1

634

629

626

621

621

Mar-23

Jun-23

Sep-23

Dec-23

Mar-24

Total customer loans o/w Individuals o/w Mortgages

o/w SMEs o/w Corporates & Institutions

Of which

Spain

UK

Mexico

Brazil

Q1'24	Q1'23	YoY (%)	QoQ (%)
621	634	-2.0	0.0
394	401	-1.9	2.4
326	339	-3.8	-0.8
87	91	-3.9	-1.3
142	144	-1.1	0.7
Q1'24	Q1'23	YoY (%)	QoQ (%)
160	166	-3.9	-0.4
230	243	-5.3	-0.9
36	34	6.9	-0.5
65	61	7.2	2.0

(1) Excludes reverse repos. End period exchange rate as at Mar-24.

7

Customer funds rose 3% YoY with time deposits growing while demand deposits declined, on the back of current interest rate environment

Retail

Customer funds (Constant € bn)1

711	710	723	730	732

Mar-23

Jun-23

Sep-23

Dec-23

Mar-24

	Q1'24	Q1'23	YoY (%)	QoQ (%)
Demand	494	510	-3.2	-0.6
Time	149	122	22.1	2.3
Total deposits	642	632	1.7	0.1
Mutual Funds	89	79	12.8	2.2
Total customer funds	732	711	2.9	0.3
Of which	Q1'24	Q1'23	YoY (%)	QoQ (%)
Spain	250	247	1.2	-0.5
UK	223	219	1.9	-0.1
Mexico	55	50	10.8	5.4
Brazil	78	72	9.0	-2.6

(1) Excluding repos. End period exchange rate as at Mar-24.

8

Index

1

2

3

4

About us, Strategy	Results	Final remarks	Appendix
and Business

9

NII rose 17% YoY driven by good margin management in Spain and Portugal and higher volumes in Mexico, Poland and Brazil

Retail

Net interest income (Constant € mn)1

6,093	6,523	6,713	6,454	7,145

Yields and Costs (%)

				Yield on loans
5.45%	5.88%	6.00%	6.26%	6.49%
				Cost of deposits
1.89%	2.15%	2.31%	2.00%	2.40%

Q1'23

Q2'23

Q3'23

Q4'23

Q1'24

Q1'23

Q2'23

Q3'23

Q4'23

Q1'24

NII / Average total earning assets

2.52%

2.74%

2.85%

2.71%

3.12%

Differential
3.56%	3.73%	3.70%	4.25%	4.09%

(1) Average exchange rate as of Q1'24.	10
More information regarding Retail & Commercial Banking NII, yields and costs of deposits by main country in the Appendix.