FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the month of April, 2024

Commission File Number: 001-12518

 

 

Banco Santander, S.A.

(Exact name of registrant as specified in its charter)

 

 

Ciudad Grupo Santander

28660 Boadilla del Monte (Madrid) Spain

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F  ☒            Form 40-F  ☐

BANCO SANTANDER, S.A.

________________________

TABLE OF CONTENTS

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Item 1. January - March 2024 Financial Report			3

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January - March			2024

Index

Key consolidated data			3
Business model			5
Group financial information			6
General background			6
Group performance			7
Income statement			9
Balance sheet			15
Solvency ratios			18
Risk management			19
Financial information by segment			23
Responsible banking			42
Corporate governance			44
The Santander share			45
Appendix			47
Financial information			48
Alternative performance measures			74
Glossary			89
Important information			90

This report was approved by the board of directors on 29 April 2024, following a favourable report from the audit committee. Important information regarding this report can be found on pages 90 and 91.

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Key consolidated data

BALANCE SHEET (EUR million)			Mar-24			Dec-23			%						Mar-23			%			Dec-23
Total assets			1,800,006			1,797,062			0.2						1,749,402			2.9			1,797,062
Loans and advances to customers			1,049,533			1,036,349			1.3						1,041,388			0.8			1,036,349
Customer deposits			1,044,453			1,047,169			(0.3)						998,949			4.6			1,047,169
Total funds			1,315,779			1,306,942			0.7						1,237,015			6.4			1,306,942
Total equity			105,025			104,241			0.8						99,490			5.6			104,241
Note: total funds includes customer deposits, mutual funds, pension funds and managed portfolios.

INCOME STATEMENT (EUR million)			Q1'24			Q4'23			%						Q1'23			%			2023
Net interest income			11,983			11,122			7.7						10,396			15.3			43,261
Total income			15,045			14,552			3.4						13,922			8.1			57,423
Net operating income			8,498			8,088			5.1						7,777			9.3			31,998
Profit before tax			4,583			3,922			16.9						3,832			19.6			16,459
Profit attributable to the parent			2,852			2,933			(2.8)						2,571			10.9			11,076
Changes in constant euros:
Q1'24 / Q4'23: NII: +7.7%; Total income: +3.4%; Net operating income: +5.2%; Profit before tax: +17.1%; Attributable profit: -2.7%.
Q1'24 / Q1'23: NII: +13.2%; Total income: +6.3%; Net operating income: +7.2%; Profit before tax: +17.5%; Attributable profit: +8.8%.

EPS, PROFITABILITY AND EFFICIENCY (%) 1			Q1'24			Q4'23			%						Q1'23			%			2023
EPS (euros)			0.17			0.18			(2.7)						0.15			13.7			0.65
RoE			11.9			12.4									11.4						11.9
RoTE			14.9			15.6									14.4						15.1
RoA			0.69			0.71									0.66						0.69
RoRWA			1.96			2.04									1.86						1.96
Efficiency ratio 2			42.6			44.4									44.1						44.1

UNDERLYING INCOME STATEMENT 2 (EUR million)			Q1'24			Q4'23			%						Q1'23			%			2023
Net interest income			11,983			11,122			7.7						10,185			17.7			43,261
Total income			15,380			14,552			5.7						13,935			10.4			57,647
Net operating income			8,833			8,088			9.2						7,790			13.4			32,222
Profit before tax			4,583			3,922			16.9						4,095			11.9			16,698
Profit attributable to the parent			2,852			2,933			(2.8)						2,571			10.9			11,076
Changes in constant euros:
Q1'24 / Q4'23: NII: +7.7%; Total income: +5.7%; Net operating income: +9.3%; Profit before tax: +17.1%; Attributable profit: -2.7%.
Q1'24 / Q1'23: NII: +15.6%; Total income: +8.6%; Net operating income: +11.3%; Profit before tax: +9.8%; Attributable profit: +8.8%.

Note: for Argentina and any grouping which includes it, the variations in constant euros have been calculated considering the ARS exchange rate on the last working day for each of the periods presented. For further information, see the section 'Alternative performance measures' in the appendix to this report.

January - March 2024						3

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

SOLVENCY (%)			Mar-24			Dec-23									Mar-23						Dec-23
Fully-loaded CET1 ratio			12.3			12.3									12.2						12.3
Fully-loaded total capital ratio			16.5			16.3									15.8						16.3

CREDIT QUALITY (%)			Q1'24			Q4'23									Q1'23						2023
Cost of risk 2, 3			1.20			1.18									1.05						1.18
NPL ratio			3.10			3.14									3.05						3.14
NPL coverage ratio			66			66									68						66

MARKET CAPITALIZATION AND SHARES			Mar-24			Dec-23			%						Mar-23			%			Dec-23
Shares (millions)			15,826			16,184			(2.2)						16,454			(3.8)			16,184
Share price (euros)			4.522			3.780			19.6						3.426			32.0			3.780
Market capitalization (EUR million)			71,555			61,168			17.0						56,371			26.9			61,168
Tangible book value per share (euros)			4.86			4.76									4.41						4.76
Price / Tangible book value per share (X)			0.93			0.79									0.78						0.79

CUSTOMERS (thousands)			Q1'24			Q4'23			%						Q1'23			%			2023
Total customers			165,752			164,542			0.7						161,155			2.9			164,542
Active customers			100,092			99,503			0.6						99,262			0.8			99,503
Digital customers			55,305			54,161			2.1						51,919			6.5			54,161

OTHER DATA			Mar-24			Dec-23			%						Mar-23			%			Dec-23
Number of shareholders			3,584,294			3,662,377			(2.1)						3,881,758			(7.7)			3,662,377
Number of employees			211,141			212,764			(0.8)						210,168			0.5			212,764
Number of branches			8,405			8,518			(1.3)						8,993			(6.5)			8,518

1.			For further information, see the section 'Alternative performance measures' in the appendix to this report.
2.			In addition to financial information prepared in accordance with International Financial Reporting Standards (IFRS) and derived from our consolidated financial statements, this report contains certain financial measures that constitute alternative performance measures (APMs) as defined in the Guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority (ESMA) on 5 October 2015, and other non-IFRS measures, including the figures related to “underlying” results, which do not include factors that are outside the ordinary course of our business, or have been reclassified within the underlying income statement. Further details are provided in the “Alternative performance measures” section of the appendix to this report. For further details on the APMs and non-IFRS measures used, including their definition or a reconciliation between any applicable management indicators and the financial data presented in the annual consolidated financial statements prepared under IFRS, please see our 2023 Annual Financial Report, published in the CNMV on 19 February 2024, our 20-F report for the year ending 31 December 2023 filed with the SEC in the United States on 21 February 2024 as well as the “Alternative performance measures” section of the appendix to this report.
3.			Allowances for loan-loss provisions over the last 12 months / Average loans and advances to customers over the last 12 months.

4						January - March 2024

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

    

Our business model

Customer focus

Building a digital bank with branches

→ New operating model to build a digital bank with branches, with a multichannel offer to fulfil all our customers' financial needs.

166 mn

100 mn

total customers

active customers

Scale

→ Our global and in-market scale helps us to improve our local banks' profitability, adding value and network benefits. → Our activities are organized under five global businesses: Retail & Commercial Banking (Retail), Digital Consumer Bank (Consumer), Corporate & Investment Banking (CIB), Wealth Management & Insurance (Wealth) and Payments. → Our five global businesses and our presence in Europe, DCB Europe, North America and South America support value creation based on the profitable growth and operational leverage that ONE Santander provides.

Global and in-market scale

Diversification

Business, geographical and balance sheet

→ Well-balanced diversification between businesses and markets with a solid and simple balance sheet that gives us recurrent net operating income with low volatility and more predictable results.

Our corporate culture

The Santander Way remains unchanged to continue to deliver for all our stakeholders

			Our purpose To help people and businesses prosper.
			Our aim To be the best open financial services platform, by acting responsibly and earning the lasting loyalty of our people, customers, shareholders and communities.
			Our how Everything we do should be Simple, Personal and Fair.

January - March 2024						5

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

General background

Group Financial Information

General background

In Q1 2024, Santander operated in an environment characterized by a gentle global economic slowdown, with relatively stable interest rates and a gradual decline in inflation in most regions. Geopolitical tensions, while still present, have not resulted in significant economic impacts. Labour markets withstood the monetary tightening period, with unemployment rates at or close to full employment across most of Santander's footprint.

Country						GDP Change1			Economic performance
			Eurozone			+0.5%			After stagnating in 2023, business and consumer confidence point to a scenario of GDP growth in Q1 2024. Inflation continued to moderate (2.4% in March). Despite this, the ECB held interest rates at 4%, waiting for wage moderation to be confirmed. We expect the first interest rate cut in June, if the appropriate circumstances exist for the ECB to start lowering interest rates.
			Spain			+2.5%			Q1 2024 PMI and social security affiliation numbers suggest that GDP will continue to grow at a higher pace than the eurozone driven by private consumption. The labour market remains strong, with employment numbers at record levels. Inflation rebounded to 3.2% due to the normalization in electricity VAT, while core inflation continued to moderate (3.3%).
			United Kingdom			+0.1%			Following stagnation in 2023, monthly GDP grew in February 0.1% (+0.3% in January). The labour market remains resilient, with an unemployment rate of 4.2% in January. Inflation is starting to fall back, declining to 3.2% in March from 3.4% in February, it is expected to reach the 2% target in June. The central bank maintained its interest rate at 5.25%.
			Portugal			+2.5%			The economy ended the year with an acceleration in growth that is starting to lose momentum in 2024. Despite this, Q1 2024 indicators are encouraging with an upturn in industrial production, economic sentiment and economic activity indicators. Labour market data remain strong with an unemployment rate close to full employment (6.6% in Q4 2023). Inflation moderated in March (2.3%).
			Poland			+0.1%			There was moderate year-on-year growth in 2023. Economic indicators in 2024 are beginning to show strength, which could drive GDP growth in Q1 2024 to close to 2.1%. The upturn in consumption continues to be supported by a labour market with full employment (unemployment rate of 3.1% in Q4 2023), with high wage growth (+12.9% in February). As a result, the central bank held interest rates stable at 5.75% despite falling inflation (2% in March).
			United States			+2.5%			Economic growth remained very robust in Q1 2024, supported by strong job creation. Inflation, which behaved worse than expected in the first three months of the year (3.5% in March), raised doubts about the Fed's expected interest rate cuts this year.
			Mexico			+3.2%			The economy has started 2024 with dynamism, driven by manufacturing and exports. Inflation moderated to 4.4% in March (4.7% at the end of 2023), leading to the central bank's first interest rate cut in March, -25 bps to 11%.
			Brazil			+2.9%			Following a slowdown in Q4 2023, the economy has regained momentum at the beginning of 2024, especially in private consumption and employment. Inflation fell to 3.9% in March (4.6% at the end of 2023). The central bank has continued its cycle of cuts in the official interest rate, with decreases of 50 bps in both the January and March meetings, to 10.75% (from 11.75% at the end of 2023).
			Chile			+0.2%			After a weak 2023, the economy is recovering, with growth in mining, industry and services. Inflation continued to decline (3.2% in March vs. 3.4% at the end of 2023), very close to the 3% target. The central bank continued its process of rapid interest rate cuts, with a reduction of 100 bps in Q1 2024 and 75 bps in April to 6.5% (8.25% at the end of 2023).
			Argentina			-1.6%			The economy remained weak at the beginning of the year, due to the impact of the fiscal adjustment programme and high inflation (15% monthly average in Q1 2024), still affected by the sharp depreciation of the peso in December 2023. The external sector is showing signs of recovery, with increases in exports and in international foreign exchange reserves.

1.Estimated year-on-year changes for 2023.

6						January - March 2024

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Group performance

Highlights of the period

Main figures
						u			In Q1 2024, attributable profit amounted to EUR 2,852 million, 11% more than in Q1 2023 (+9% in constant euros) with double-digit growth in Retail, Wealth and Payments.
						u			The results in the quarter were affected by the EUR 335 million charge due to the temporary levy on revenue obtained in Spain, 50% higher than in 2023. Excluding this impact, profit would have been EUR 3,187 million.
						u			In terms of profitability, RoTE stood at 14.9% compared to 14.4% in the same period of 2023. Annualizing the impact of the temporary levy, RoTEs were 16.2% and 15.3%, respectively.
						u			Sustained earnings per share growth, which rose 14% compared to Q1 2023 to EUR 17.0 cents, boosted by higher profit and share buybacks in the last 12 months.
						u			Business volumes reflect the impact that the economic and interest rate environment had on customer behaviour and our active capital management. Even so, gross loans and advances to customers (excluding reverse repos) remained stable in euros and in constant euros, as growth in Consumer, Wealth and Payments was offset by the reduction in Retail in Europe (in individuals, SMEs and corporates) and CIB (mainly Global Transaction Banking) in Spain and Brazil. Customer funds (customer deposits excluding repurchase agreements plus customer funds) rose 6% year-on-year in euros (up 5% in constant euros). Deposits rose in all businesses and regions maintaining a stable structure.
						u			The benefits from our global scale, margin management and higher customer activity were reflected in year-on-year increases in net interest income (+18%, +16% in constant euros) and net fee income (+6%, +5%, in constant euros), resulting in total income growth of 10% (+9% in constant euros).
						u			Structural changes towards a simpler and more integrated model through ONE Transformation, which we are expanding across the Group, are contributing to efficiency gains and profitable growth, particularly evident in our Retail and Consumer businesses.
						u			The efficiency ratio improved 1.5 pp compared to Q1 2023 to 42.6%, driven mainly by Retail which decreased 3.9 pp.
						u			Credit quality remains robust, driven by strong employment and the macroeconomic environment across our footprint. The NPL ratio was 3.10%, 5 bps higher year-on-year. Total loan-loss reserves reached EUR 23,542 million, resulting in a total coverage ratio of 66%.
						u			The Group's cost of risk stood at 1.20% (1.18% in December 2023 and 1.05% in March 2023), in line with our public target and in line with expectations. Retail and Consumer accounted for 85% of Group's net loan-loss provisions. In Retail, cost of risk remained under control at 1.03%. In Consumer (2.12%), CoR continued to normalize and remained at controlled levels and in line with expectations.
						u			The fully-loaded CET1 ratio stood at 12.3%. In the quarter, there were 32 bps of organic generation (after absorbing the negative 5 bp impact due to the temporary levy on revenue earned in Spain) and a 22 bp charge for a future cash dividend payment against Q1 2024 in line with the 50% payout target1. Additionally, there was a -24 bp regulatory impact relating to a parameter change regarding maturities in CIB models. Lastly, there were positive impacts of 14 bps mostly relating to deductions (DTAs, intangibles, etc) and available-for-sale portfolio valuations.

1.The implementation of the shareholder remuneration policy is subject to future corporate and regulatory decisions and approvals.

January - March 2024						7

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Group performance

			Think Value

						u			On 22 March 2024, the AGM approved a cash dividend of EUR 9.50 cents per share that will be paid from 2 May 2024. Including the cash dividend paid in November 2023 (EUR 8.10 cents), the total cash dividend per share paid against 2023 results will be EUR 17.60 cents, around 50% more than the dividends paid against 2022 results.
						u			In addition to this payment, there are two share buyback programmes. The first has already been completed for a total of EUR 1,310 million, and the second started on 20 February 2024 having been approved by the board of directors and having obtained the required regulatory authorization, for a maximum amount of EUR 1,459 million. Following the completion of the second share buyback programme, the Group will have repurchased c.11% of its outstanding shares since we began our buybacks in 2021.
						u			Total shareholder remuneration1 against 2023 results is therefore expected to be EUR 5,538 million, 44% higher than the remuneration against 2022 results, distributed approximately equally between cash dividends and share buybacks.
						u			As at March 2023, TNAV was EUR 4.86. Including both dividends charged against 2023 results, the TNAV per share + dividend per share increased 14% year-on-year and 4% in the quarter.

			Think Customer

						u			Total customers amounted to 166 million, 5 million more than in March 2023 and we have 100 million active customers.
						u			Transaction volumes per active customer rose 11% year-on-year in Q1 2024.
						u			We continue to deliver great customer experience and improve our service quality, ranking in the top 3 in NPS2 in seven of our markets.

			Think Global

Contribution to Group revenue3

Year-on-year changes

u

In Retail, attributable profit was EUR 1,503 million (+26% in euros and +22% in constant euros) driven by a positive performance in total income, cost management and lower provisions.

u

Efficiency improved 3.9 pp to 41.1%, cost of risk remained controlled (1.03%) and RoTE increased to 15.6% (17.6% annualizing the impact of the temporary levy).

u

In Consumer, net operating income increased 7%, supported by total income growth (4%) and flat costs. However, attributable profit fell (-5% in euros and in constant euros) to EUR 464 million, impacted by cost of risk normalization.

u

Efficiency stood at 41.2%, improving 1.9 pp, cost of risk was 2.12% and RoTE stood at 11.2% (11.9% annualizing the impact of the temporary levy).

u

In CIB, we achieved record total income. However, attributable profit (EUR 705 million) declined 5% (in euros and constant euros), impacted by costs relating to our transformation investments and higher LLPs (net releases in Q1 2023).

u

The efficiency ratio was 42.0%, remaining one the best in the sector. RoTE was 19.2% (19.7% annualizing the impact of the temporary levy).

u

In Wealth, attributable profit amounted to EUR 400 million, 27% higher year-on-year (+25% in constant euros) driven by higher activity and margin management in a favourable interest rate environment. If we include fees ceded to the commercial network, profit was EUR 838 million (+16% in constant euros).

u

Efficiency improved 4.0 pp to 34.4% and RoTE was 77.3% (80.4% annualizing the impact of the temporary levy).

u

In Payments, attributable profit was EUR 137 million, 29% higher year-on-year in euros (+22% in constant euros) supported by lower LLPs in our Cards business.

u

Cost of risk increased 16 bps to 6.89%. In PagoNxt, EBITDA margin was 17.0% (+10 pp).

1.In line with the current shareholder remuneration policy of approximately 50% of the Group's reported profit (excluding non-cash, non-capital ratios impact items), divided approximately equally between cash dividends and share repurchases. Execution of the shareholder remuneration policy is subject to future corporate and regulatory decisions and approvals.

2.Net Promoter Score, internal benchmark of individual customers' satisfaction audited by Stiga/Deloitte in H2'23.

3.As % of total operating areas, excluding the Corporate Centre.

8						January - March 2024

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Income statement

Grupo Santander results

Grupo Santander. Summarized income statement
EUR million
									Change												Change
			Q1'24			Q4'23			%			% excl. FX						Q1'23			%			% excl. FX
Net interest income			11,983			11,122			7.7			7.7						10,396			15.3			13.2
Net fee income1			3,240			2,835			14.3			14.4						3,043			6.5			4.8
Gains or losses on financial assets and liabilities and exchange differences2			623			664			(6.2)			(6.0)						715			(12.9)			(12.6)
Dividend income			93			97			(4.1)			(4.3)						63			47.6			46.8
Share of results of entities accounted for using the equity method			123			151			(18.5)			(18.3)						126			(2.4)			(3.9)
Other operating income/expenses3 (net)			(1,017)			(317)			220.8			219.0						(421)			141.6			136.6
Total income			15,045			14,552			3.4			3.4						13,922			8.1			6.3
Operating expenses			(6,547)			(6,464)			1.3			1.3						(6,145)			6.5			5.2
Administrative expenses			(5,719)			(5,685)			0.6			0.6						(5,356)			6.8			5.4
Staff costs			(3,594)			(3,646)			(1.4)			(1.5)						(3,245)			10.8			9.4
Other general administrative expenses			(2,125)			(2,039)			4.2			4.3						(2,111)			0.7			(0.7)
Depreciation and amortization			(828)			(779)			6.3			6.4						(789)			4.9			3.9
Provisions or reversal of provisions			(633)			(689)			(8.1)			(8.3)						(642)			(1.4)			(3.8)
Impairment or reversal of impairment of financial assets not measured at fair value through profit or loss (net)			(3,134)			(3,479)			(9.9)			(9.8)						(3,301)			(5.1)			(7.0)
Impairment on other assets (net)			(129)			(108)			19.4			18.9						(22)			486.4			484.5
Gains or losses on non-financial assets and investments, net			2			33			(93.9)			(94.6)						26			(92.3)			(93.3)
Negative goodwill recognized in results			0			39			—			—						0			—			—
Gains or losses on non-current assets held for sale not classified as discontinued operations			(21)			38			—			—						(6)			250.0			209.6
Profit or loss before tax from continuing operations			4,583			3,922			16.9			17.1						3,832			19.6			17.5
Tax expense or income from continuing operations			(1,468)			(724)			102.8			102.9						(967)			51.8			49.0
Profit from the period from continuing operations			3,115			3,198			(2.6)			(2.3)						2,865			8.7			6.9
Profit or loss after tax from discontinued operations			—			—			—			—						—			—			—
Profit for the period			3,115			3,198			(2.6)			(2.3)						2,865			8.7			6.9
Profit attributable to non-controlling interests			(263)			(265)			(0.8)			1.4						(294)			(10.5)			(10.7)
Profit attributable to the parent			2,852			2,933			(2.8)			(2.7)						2,571			10.9			8.8
EPS (euros)			0.17			0.18			(2.7)									0.15			13.7
Diluted EPS (euros)			0.17			0.17			(2.6)									0.15			13.6
Memorandum items:
Average total assets			1,804,334			1,799,535			0.3									1,742,316			3.6
Average stockholders' equity			96,308			94,877			1.5									90,353			6.6

NOTE: The summarized income statement groups some lines of the consolidated income statement on page 88 as follows:
1.‘Commission income’ and ‘Commission expense’.
2.‘Gain or losses on financial assets and liabilities not measured at fair value through profit or loss, net’; ‘Gain or losses on financial assets and liabilities held for trading, net’; ‘Gains or losses on non-trading financial assets and liabilities mandatorily at fair value through profit or loss’; ‘Gain or losses on financial assets and liabilities measured at fair value through profit or loss, net’; ‘Gain or losses from hedge accounting, net’; and ‘Exchange differences, net’.
3.‘Other operating income’; ‘Other operating expenses’; ’Income from insurance and reinsurance contracts’; and ‘Expenses from insurance and reinsurance contracts’.

January - March 2024						9

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Income statement

Executive summary

→ Positive start to the year, with strong profit growth despite the higher impact from the temporary levy on revenue earned in Spain → Continuation of 2023 trends: record quarter in net interest income and net fee income → Efficiency improvement and profitable growth supported by the operational leverage resulting from ONE Transformation → Risk indicators were stable, due to good risk management, the economic environment and low unemployment

Attributable profit

RoTE

RoRWA

EUR 2,852 mn

+11% in euros

14.9%

1.96%

+9% in constant euros

+55 bps

+10 bps

Changes vs. Q1 2023.

Results performance compared to Q1 2023

The Group presents, both at the total Group level and for each of the business units, the changes in euros registered in the income statement, as well as variations excluding the exchange rate effect (except for Argentina and any grouping which includes it; for further information, see methodology in the section 'Alternative performance measures' in the appendix to this report), understanding that the latter provide a better analysis of the Group’s management. At the Group level, exchange rates had a positive impact of 2 pp in revenue and a negative impact of 1 pp in costs.

Total income

Total income amounted to EUR 15,045 million, up 8% year-on-year and increased 6% in constant euros. By line:

•Net interest income (NII) amounted to EUR 11,983 million, 15% higher than Q1 2023 with widespread growth across businesses and regions. In constant euros, it rose 13%, by business:

–Strong growth in Retail, with increases across all regions but especially in Europe, driven by good margin management, and in South America, which benefitted from lower deposit costs following interest rate cuts and higher volumes, particularly in Brazil.

–In Consumer, NII rose driven by higher volumes in Europe and lower interest rates favouring consumption in Brazil.

–CIB increased strongly, backed by robust performances in all its businesses.

–In Wealth, double-digit rise due to good commercial activity in Private Banking and good margin management in the favourable interest rate environment.

Net interest income
EUR million
			constant euros

–In Payments, strong growth due to the increases in both PagoNxt and Cards.

In addition, NII in Q1 2023 included a positive EUR 211 million impact from the reversal of tax liabilities in Brazil.

•Net fee income amounted to EUR 3,240 million, up 6% compared to Q1 2023. In constant euros, it was 5% higher, by business:

– In Retail, net fee income increased, with growth across most countries, but especially in Mexico (insurance) and Brazil (account maintenance and insurance).

– In Consumer, net fee income rose double digits, supported by insurance in DCB Europe and Brazil.

– In CIB, it increased, driven by greater activity in Global Banking.

– In Wealth, double-digit growth in net fee income, benefitting from increased activity in Private Banking and Asset Management.

– In Payments, net fee income declined year-on-year due to Cards, impacted by a one-time positive fee recorded in Q1 2023 from commercial agreements in Brazil, campaigns to increase loyalty in Mexico and new regulation on interchange fees in Chile.

Net fee income
EUR million
			constant euros

10						January - March 2024

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Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Income statement

•Gains on financial transactions declined to EUR 623 million (EUR 715 million in Q1 2023) driven by the higher losses in the Corporate Centre (with higher negative results from the FX hedge).

•Dividend income was EUR 93 million (EUR 63 million in Q1 2023).

•The income from companies accounted for by the equity method reached EUR 123 million, compared to EUR 126 million in Q1 2023.

•Other operating income recorded a loss of EUR 1,017 million (compared to a EUR 421 million loss in Q1 2023), owing to the hyperinflation adjustment in Argentina and the EUR 335 million charge relating to the temporary levy on revenue earned in Spain (EUR 224 million in Q1 2023).

In summary, a robust performance in total income, with increases across all businesses (except Payments which was flat) and regions, reaching record figures both in net interest income and net fee income.

Total income
EUR million
			constant euros

Costs

Operating expenses amounted to EUR 6,547 million, 7% more than Q1 2023 (+5% in constant euros), mainly due to the impact of inflation. In real terms (excluding the impact of average inflation and in constant euros), costs increased 1% year-on-year.

Our cost management continued to focus on structurally improving our efficiency, and as a result, we increased our operating leverage and remained among the most efficient banks in the world.

Our business transformation plan, One Transformation, continued to progress across our footprint, reflected in greater operating productivity and better business dynamics.

In constant euros, operating expenses by business performed as follows:

•In Retail, costs increased 4% driven by higher personnel and transformation costs in the UK, Poland, Mexico and Brazil, with good performances in Spain and the US. In real terms, without the impact of inflation, costs remained flat.

•In Consumer, they remained flat but decreased 4% in real terms reflecting cost discipline in the US, which enabled us to absorb our strategic investments in buy now, pay later and leasing platforms (launched in two European markets).

•In CIB, the 19% rise in costs (+15% in real terms) reflects the investments in transformation and in new products and capabilities in the US.

•In Wealth, costs were up 5% impacted by inflation as in real terms they increased just 1% due to investments in key initiatives, such as strengthening our Private Banking teams.

•In Payments, costs were 8% higher affected by inflationary pressures (+4% in real terms), and platform investments in both PagoNxt and Cards.

Operating expenses
EUR million
			constant euros

January - March 2024						11

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Responsible banking Corporate governance Santander share

Appendix

Index

Income statement

Provisions or reversal of provisions

Provisions (net of provisions reversals) amounted to EUR 633 million (EUR 642 million in Q1 2023).

Impairment or reversal of impairment of financial assets not measured at fair value through profit or loss (net)

Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss (net) was EUR 3,134 million (EUR 3,301 million in Q1 2023, affected by higher provisions recorded in Brazil). Credit quality indicators remained stable, supported by the good performance of the global economy and labour markets across our footprint.

Impairment on other assets (net)

The impairment on other assets (net) was EUR 129 million, compared to an impairment of EUR 22 million in the Q1 2023.

Gains or losses on non-financial assets and investments (net)

Net gains on non-financial assets and investments were EUR 2 million in Q1 2024 (gain of EUR 26 million in Q1 2023).

Negative goodwill recognized in results

There was no negative goodwill recorded in Q1 2024 or in Q1 2023.

Net loan-loss provisions
EUR million
			constant euros

Gains or losses on non-current assets held for sale not classified as discontinued operations

This item, which mainly includes impairment of foreclosed assets recorded and the sale of properties acquired upon foreclosure, recorded a EUR 21 million loss in Q1 2024 (EUR 6 million loss in Q1 2023).

Profit before tax

Profit before tax was EUR 4,583 million in Q1 2024, +20% year-on-year. In constant euros, it rose 18% supported by the solid performance in net interest income and net fee income, which more than offset the inflationary impact on costs and the investments in transformation and digitalization, as well as the impact of the temporary levy on revenue earned in Spain.

Income tax

Total income tax rose to EUR 1,468 million compared to EUR 967 million in Q1 2023, partially driven by lower tax related to the aforementioned reversal of tax liabilities in Brazil.

Profit attributable to non-controlling interests

Profit attributable to non-controlling interests amounted to EUR 263 million, EUR 31 million less than in Q1 2023 due to DCB Europe.

Profit attributable to the parent

Profit attributable to the parent amounted to EUR 2,852 million in Q1 2024, compared to EUR 2,571 million in the same period in 2023. These results do not fully reflect profit performance due to the impact of the temporary levy on revenue earned in Spain mentioned in other sections of the report.

RoTE stood at 14.9% (14.4% in Q1 2023), RoRWA at 1.96% (1.86% in Q1 2023) and earnings per share stood at EUR 0.17 (EUR 0.15 in Q1 2023).

Annualizing the impact of the temporary levy on revenue earned in Spain, RoTE would be 16.2%.

12						January - March 2024

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Appendix

Index

Income statement

Underlying profit attributable to the parent

Profit attributable to the parent and underlying profit were the same in Q1 2024 (EUR 2,852 million), and in Q1 2023 (EUR 2,571 million) as profit was not affected by results that fell outside the ordinary course of our business, but there was a reclassification of certain items under some headings of the underlying statement to better understand the business trends. These items are:

•The impact of the temporary levy on revenue earned in Spain totalling EUR 335 million in Q1 2024, and EUR 224 million in Q1 2023, which was moved from total income to other gains (losses) and provisions.

•Additionally, results in Brazil related to reversal of tax liabilities amounted to EUR 261 million (EUR 211 million recorded in NII and a positive impact of EUR 50 million in tax) and provisions to strengthen the balance sheet, which, net of tax, totalled EUR 261 million (EUR 474 million recorded in net loan-loss provisions and a positive impact of EUR 213 million in tax). As the impact from these movements on profit was zero, we have netted them from the underlying account lines to facilitate comparison between quarters.

For more details, see the 'Alternative Performance Measures' section in the appendix of this report.

Attributable profit and underlying profit increased 11% in euros and 9% in constant euros compared to Q1 2023.

On a like-for-like basis, excluding the impact of the temporary levy on revenue earned in Spain, profit increased by 14% and 12% in constant euros.

This profit growth was mainly boosted by a solid performance in total income, which increased 10% in euros and 9% in constant euros year-on-year, and by the efficiency improvement (down to 42.6%).

Santander's net operating income was EUR 8,833 million, 13% higher year-on-year. In constant euros, it rose 11% as follows:

•In Retail, net operating income was 21% up, with strong improvements in all regions, supported by revenue growth (+13%) due to good margin management reflected in net interest income, and cost discipline, with costs growing in line with inflation.

•In Consumer, it increased 7%, supported by sustained revenue growth, due to active loan repricing, focus on profitability in Europe (where volumes are increasing) and the increase in customer deposits. Costs were controlled, remaining stable in an environment of persistently high inflation.

•In CIB, despite good revenue dynamics driven by strong growth in North America, net operating income declined 3% due to the increase in costs, impacted by our investments in new products and capabilities, as mentioned earlier.

•In Wealth, net operating income rose 24% as total income growth outpaced costs, due to good commercial activity in Private Banking and Asset Management, which supported a 4 pp efficiency improvement to 34.4%.

•In Payments, net operating income decreased 7%, due to lower revenue (one-time positive fee recorded in Q1 2023 in Brazil, loyalty campaigns in Mexico and new regulation in Chile) and investments in the development of global platforms.

Net loan-loss provisions rose 9% (+7% in constant euros) mainly due to the normalization and higher volumes in Consumer. Cost of risk remained stable at 1.20%, in line with the Group's target for the year.

Summarized underlying income statement
EUR million									Change												Change
			Q1'24			Q4'23			%			% excl. FX						Q1'23			%			% excl. FX
Net interest income			11,983			11,122			7.7			7.7						10,185			17.7			15.6
Net fee income			3,240			2,835			14.3			14.4						3,043			6.5			4.8
Gains (losses) on financial transactions 1			623			664			(6.2)			(5.9)						715			(12.9)			(12.6)
Other operating income			(466)			(69)			575.4			557.7						(8)			—			—
Total income			15,380			14,552			5.7			5.7						13,935			10.4			8.6
Administrative expenses and amortizations			(6,547)			(6,464)			1.3			1.3						(6,145)			6.5			5.2
Net operating income			8,833			8,088			9.2			9.3						7,790			13.4			11.3
Net loan-loss provisions			(3,125)			(3,421)			(8.7)			(8.5)						(2,873)			8.8			6.9
Other gains (losses) and provisions			(1,125)			(745)			51.0			49.9						(822)			36.9			34.0
Profit before tax			4,583			3,922			16.9			17.1						4,095			11.9			9.8
Tax on profit			(1,468)			(724)			102.8			102.6						(1,230)			19.3			16.7
Profit from continuing operations			3,115			3,198			(2.6)			(2.3)						2,865			8.7			6.9
Net profit from discontinued operations			—			—			—			—						—			—			—
Consolidated profit			3,115			3,198			(2.6)			(2.3)						2,865			8.7			6.9
Non-controlling interests			(263)			(265)			(0.8)			1.3						(294)			(10.5)			(10.8)
Profit attributable to the parent			2,852			2,933			(2.8)			(2.7)						2,571			10.9			8.8

1.Includes exchange differences.

January - March 2024						13

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Appendix

Index

Income statement

Underlying results performance compared to the previous quarter

Underlying profit attributable to the parent and profit attributable to the parent were the same, EUR 2,852 million in Q1 2024, and EUR 2,933 million in Q4 2023, as profit was not affected by results outside the ordinary course of our business.

Profit decreased 3% quarter-on-quarter in euros. In constant euros, it also decreased 3% with the performance of the main lines of the income statement as follows:

Total income rose 6%, driven by the positive performance of the main lines:

•Net interest income was up 8%, with growth in all businesses. In Retail, NII was supported by good margin management and Consumer by active portfolio repricing, focus on profitability and the increase in deposits.

•Net fee income increased 14% compared to the previous quarter, registering a record quarter of EUR 3,240 million, driven by growth of CIB in the US, and the increased commercial activity in Retail.

Net operating income
EUR million
			constant euros

•Gains on financial transactions fell 6%, with good performance in CIB that partially offset higher losses in the Corporate Centre.

•Operating expenses in Q1 2024 increased 1% quarter-on-quarter. This performance benefited from declines in Consumer, Wealth and the Corporate Centre, as well as in CIB (following the pick up in the previous quarter due the greater impact relating to the investments mentioned earlier), which offset the increases in Retail, impacted by inflation in Argentina, and in Payments, from platform investments.

•Net loan-loss provisions dropped 9% explained by single names in CIB in Q4 2023 and lower provisions in Retail.

•Other gain (losses) and provisions recorded a loss of EUR 1,125 million, which includes the charge of EUR 335 million for the temporary levy on revenue earned in Spain, compared to the loss of EUR 745 million recorded in Q4 2023.

Profit attributable to the parent
EUR million
			constant euros

14						January - March 2024

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Index

Balance sheet

Grupo Santander balance sheet

Grupo Santander. Condensed balance sheet
EUR million
									Change
Assets			Mar-24			Mar-23			Absolute			%			Dec-23
Cash, cash balances at central banks and other demand deposits			174,161			203,359			(29,198)			(14.4)			220,342
Financial assets held for trading			209,589			172,889			36,700			21.2			176,921
Debt securities			71,983			46,295			25,688			55.5			62,124
Equity instruments			19,805			13,704			6,101			44.5			15,057
Loans and advances to customers			18,722			10,512			8,210			78.1			11,634
Loans and advances to central banks and credit institutions			39,146			36,150			2,996			8.3			31,778
Derivatives			59,933			66,228			(6,295)			(9.5)			56,328
Financial assets designated at fair value through profit or loss1			14,919			15,411			(492)			(3.2)			15,683
Loans and advances to customers			6,474			6,979			(505)			(7.2)			7,201
Loans and advances to central banks and credit institutions			455			647			(192)			(29.7)			459
Other (debt securities an equity instruments)			7,990			7,785			205			2.6			8,023
Financial assets at fair value through other comprehensive income			84,183			84,214			(31)			—			83,308
Debt securities			73,638			73,406			232			0.3			73,565
Equity instruments			1,916			1,997			(81)			(4.1)			1,761
Loans and advances to customers			8,282			8,510			(228)			(2.7)			7,669
Loans and advances to central banks and credit institutions			347			301			46			15.3			313
Financial assets measured at amortized cost			1,207,699			1,165,387			42,312			3.6			1,191,403
Debt securities			112,589			83,928			28,661			34.1			103,559
Loans and advances to customers			1,016,055			1,015,387			668			0.1			1,009,845
Loans and advances to central banks and credit institutions			79,055			66,072			12,983			19.6			77,999
Investments in subsidiaries, joint ventures and associates			7,685			7,668			17			0.2			7,646
Tangible assets			34,229			33,989			240			0.7			33,882
Intangible assets			19,910			18,880			1,030			5.5			19,871
Goodwill			14,028			13,870			158			1.1			14,017
Other intangible assets			5,882			5,010			872			17.4			5,854
Other assets2			47,631			47,605			26			0.1			48,006
Total assets			1,800,006			1,749,402			50,604			2.9			1,797,062
Liabilities and shareholders' equity
Financial liabilities held for trading			130,466			123,716			6,750			5.5			122,270
Customer deposits			24,338			14,139			10,199			72.1			19,837
Debt securities issued			0			0			—			—			0
Deposits by central banks and credit institutions			21,095			24,066			(2,971)			(12.3)			25,670
Derivatives			54,454			63,070			(8,616)			(13.7)			50,589
Other			30,579			22,441			8,138			36.3			26,174
Financial liabilities designated at fair value through profit or loss			38,583			37,096			1,487			4.0			40,367
Customer deposits			29,532			28,441			1,091			3.8			32,052
Debt securities issued			5,933			5,726			207			3.6			5,371
Deposits by central banks and credit institutions			3,100			2,929			171			5.8			2,944
Other			18			—			18			—			—
Financial liabilities measured at amortized cost			1,465,644			1,429,788			35,856			2.5			1,468,703
Customer deposits			990,583			956,369			34,214			3.6			995,280
Debt securities issued			310,627			281,033			29,594			10.5			303,208
Deposits by central banks and credit institutions			121,424			152,446			(31,022)			(20.3)			130,028
Other			43,010			39,940			3,070			7.7			40,187
Liabilities under insurance contracts			17,738			17,274			464			2.7			17,799
Provisions			8,387			8,089			316			3.9			8,441
Other liabilities3			34,163			33,949			196			0.6			35,241
Total liabilities			1,694,981			1,649,912			45,069			2.7			1,692,821
Shareholders' equity			130,876			125,061			5,815			4.6			130,443
Capital stock			7,913			8,227			(314)			(3.8)			8,092
Reserves (including treasury stock)4			120,111			114,263			5,848			5.1			112,573
Profit attributable to the Group			2,852			2,571			281			10.9			11,076
Less: dividends			0			—			—			—			(1,298)
Other comprehensive income			(34,620)			(34,498)			(122)			0.4			(35,020)
Minority interests			8,769			8,927			(158)			(1.8)			8,818
Total equity			105,025			99,490			5,535			5.6			104,241
Total liabilities and equity			1,800,006			1,749,402			50,604			2.9			1,797,062

Note: The condensed balance sheet groups some lines of the consolidated balance sheet on pages 86 and 87 as follows:
1.'Non-trading financial assets mandatorily at fair value through profit or loss' and 'Financial assets designated at fair value through profit or loss'.
2.‘Hedging derivatives’; ‘Changes in the fair value of hedged items in portfolio hedges of interest risk’; 'Assets under reinsurance contracts'; ‘Tax assets’; ‘Other assets’; and 'Non-current assets held for sale’.
3.‘Hedging derivatives’; ‘Changes in the fair value of hedged items in portfolio hedges of interest rate risk’; ‘Tax liabilities’; ‘Other liabilities’; and ‘Liabilities associated with non-current assets held for sale‘.
4.‘Share premium’; ‘Equity instruments issued other than capital’; ‘Other equity’; ‘Accumulated retained earnings’; ‘Revaluation reserves’; ‘Other reserves’; and ‘Own shares (-)’.

January - March 2024						15

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Appendix

Index

Balance sheet

Executive summary

Gross loans and advances to customers (excl. reverse repos)

Customer funds (deposits excl. repos + mutual funds)

Credit remained stable, reflecting the macroeconomic and interest rate environment

Customer funds continued to grow year-on-year. The quarter was affected by the drop in wholesale loans

Gross loans and advances to customers (excl. reverse repos)

Customer funds (deposits excl. repos + mutual funds)

1,020

+0.1% QoQ

1,184

+0.1% QoQ

EUR billion

-0.3% YoY

EUR billion

+4.8% YoY

è By segment:

è By product:

Year-on-year decline in Retail and CIB, partially offset by growth in Consumer

Increase in time deposits and mutual funds at the expense of demand deposits

Retail

Consumer

CIB

Demand

Time

Mutual funds

-2%

+4%

-1%

-4%

+24%

+14%

Note: changes in constant euros.

Loans and advances to customers

Loans and advances to customers stood at EUR 1,049,533 million as at end March 2024, a 1% increase both quarter-on-quarter and year-on-year.

For the purpose of analysing traditional banking loans, the Group uses gross loans and advances to customers excluding reverse repos (EUR 1,020,404 million). Additionally, the comments below do not include the exchange rate impact (except for Argentina and any grouping which includes it; for further information, see methodology in the section 'Alternative performance measures' in the appendix to this report).

In Q1 2024, gross loans and advances to customers, excluding reverse repos, were stable, as follows:

•They were flat in Retail, in individuals, SMEs and corporates, with slight declines in Spain and the UK which were offset by growth in South America, coming from individuals.

•In Consumer, loans remained stable as a result of our focus on prioritizing profitable growth over volumes. Growth in Brazil, as a result of lower interest rates which favour consumption, was offset by falls in the US.

•In CIB, loans were up 1%, with growth in North America and South America, while they fell in Europe.

•They increased 1% in both Wealth and Payments.

Gross loans and advances to customers (excl. reverse repos)
EUR billion

0		%	1a
Mar-24 / Mar-23

1. In constant EUR: 0%.

Compared to March 2023, gross loans and advances to customers (excluding reverse repos and in constant euros) also remained stable, as follows:

•In Retail, loans declined 2%, with falls in Spain, the UK and Portugal, in mortgages to individuals due to early repayments, and reductions in SMEs and corporates. This was partially offset by growth in Mexico and Brazil.

•They rose 4% in Consumer boosted by the good performance in Auto in Europe and Brazil.

•In CIB, they declined 1% due to lower volumes in Spain and Brazil, partially offset by growth in the US.

•They increased 4% in Wealth and 7% in Payments.

As at end March 2023, gross loans and advances to customers excluding reverse repos maintained a diversified structure among the markets in which the Group operates: Europe (55%), North America (16%), South America (16%), DCB Europe (13%).

Gross loans and advances to customers (excl. reverse repos)
% operating areas. March 2024

16						January - March 2024

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Index

Balance sheet

Customer funds

Customer deposits amounted to EUR 1,044,453 million in March 2023, flat quarter-on-quarter, and increasing 5% year-on-year.

The Group uses customer funds (customer deposits excluding repos, plus mutual funds) for the purpose of analysing traditional retail banking funds, which amounted to EUR 1,183,594 million as at end March 2023. Additionally, the comments below do not include the exchange rate impact (except for Argentina and any grouping which includes it; for further information, see methodology in the section 'Alternative performance measures' in the appendix to this report).

In the quarter, customer funds increased EUR 1.7 billion in constant euros, as follows:

•By product, customer deposits excluding repos decreased EUR 8.1 billion and mutual funds rose EUR 9.9 billion.

•By primary segment, customer funds grew 3% in Consumer and 5% in Wealth, while they remained stable in Retail. On the other hand, in CIB they fell 7%.

Compared to March 2023, customer funds were up 5% in constant euros:

•By product, customer deposits excluding repurchase agreements rose 3%, as higher interest rates resulted in a notable increase in time deposits (+24%), which grew significantly in all markets, to the detriment of demand deposits, which fell 4%. Mutual funds increased (+14%).

•By business, customer funds rose 3% in Retail, backed by strong growth in Brazil, Mexico and the UK, +13% in Consumer due to growth in Europe and the US, +3% in CIB, driven by volumes growth in South America, and in Wealth, they increased 9% due to mutual funds. By secondary segment, good performance in all regions, with strong growth in Brazil, the UK, Mexico and DCB Europe.

As at March 2023, customer funds maintained a diversified structure among the markets in which the Group operates: Europe (61%), North America (15%), South America (17%), DCB Europe (7%). The weight of demand deposits as a percentage of total customer funds was 56%, while time deposits accounted for 26% of the total, and mutual funds for 18%.

Customer funds
EUR billion

+6		%	1a
+15		%
+4		%
•Total
• Mutual funds
•Deposits exc. repos
Mar-24 / Mar-23

1. In constant EUR: +5%.

In addition to capturing customer deposits, the Group, for strategic reasons, maintains a selective policy of issuing securities in the international fixed income markets and strives to adapt the frequency and volume of its market operations to the structural liquidity needs of each unit, as well as to the receptiveness of each market.

In Q1 2024, the Group issued:

•Medium- and long-term senior debt placed in the market of EUR 9,506 million and covered bonds amounting to EUR 4,246 million.

•TLAC eligible instruments issued amounted to EUR 6,446 million to strengthen the Group's position, of which EUR 4,049 million was senior non-preferred, EUR 2,398 million was subordinated debt.

•Maturities of medium- and long-term debt totalled EUR 8,689 million.

The net loan-to-deposit ratio was 100% (104% in March 2023). The ratio of deposits plus medium- and long-term funding to the Group’s loans was 126%, underscoring the comfortable funding structure. The liquidity coverage ratio (LCR) was an estimated 160% in March (166% in December 2023).

The Group's access to wholesale funding markets as well as the cost of issuances depends, in part, on the ratings of the rating agencies.

The ratings of Banco Santander, S.A. by the main rating agencies were Fitch: A- for senior non-preferred debt, A- for senior long-term and A/F1 for senior short-term; Moody's confirmed its A2 long-term and P-1 short-term ratings in April of this year, and also improved its outlook from stable to positive following the same movement in the rating of the Kingdom of Spain, remaining two notches above sovereign; Standard & Poor's (S&P): A+ for long-term rating and A-1 for short-term rating; and DBRS: A High for long-term and R-1 Medium for short-term. DBRS and Fitch maintained their stable outlooks, above the sovereign's outlook, while S&P also maintained its outlook but in line with the sovereign.

Sometimes the methodology applied by the agencies limits a bank's rating to the sovereign rating of the country where it is headquartered. Banco Santander, S.A. is still rated above the sovereign debt rating of the Kingdom of Spain by Moody’s, DBRS and S&P and at the same level by Fitch, which demonstrates our financial strength and diversification.

Customer funds
% operating areas. March 2024

January - March 2024						17

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Solvency ratios

Solvency ratios

Executive summary

Fully-loaded capital ratio

Fully-loaded CET1 ratio

The fully-loaded CET1 ratio exceeded 12% at the end of March, in line with the Group's objective

We continued to generate capital organically in the quarter, backed by profit growth

Fully-loaded CET1 performance (%)

Organic generation

+32 bps

Accrual for shareholder remuneration1

-22 bps

TNAV per share

TNAV per share was EUR 4.86, increasing 4% quarter-on-quarter and 14% year-on-year including the cash dividends.

As of end March 2024, the total phased-in capital ratio (applying the IFRS 9 transitional arrangements) stood at 16.6% and the phased-in CET1 ratio at 12.3%. We comfortably meet the levels required by the European Central Bank on a consolidated basis (estimated 13.9% for the total capital ratio and 9.6% for the CET1 ratio)2. This results in a distance to the maximum distributable amount (MDA) of 226 bps and a CET1 management buffer of 266 bps.

In fully-loaded terms, we generated 32 bps organically in the quarter (having absorbed -5 bps due to the temporary levy on revenue earned in Spain) and recorded a 22 bp charge for shareholder remuneration against profit earned in Q1 2024 (split between cash dividends and share buybacks) in line with our 50% payout target1.

We recorded a 24 bp charge in the quarter mainly relating to a parameter change regarding maturities in CIB models. Finally, there was a 14 bp positive impact mainly relating to deductions (DTAs, intangibles, etc) and changes in available-for-sale portfolio valuations, bringing the fully-loaded CET1 ratio to 12.3%.

The total fully-loaded capital ratio stood at 16.5%.

TNAV per share ended the quarter at EUR 4.86. Including the cash dividend paid in November 2023 (EUR 8.10 cents) and the second cash dividend charged against 2023 results (EUR 9.50 cents) approved in March, TNAV plus cash dividend per share increased 14% in the last twelve months (+4% in the quarter).

Lastly, the fully-loaded leverage ratio stood at 4.74%, and the phased-in at 4.75%.

Eligible capital. March 2024
EUR million
			Fully-loaded			Phased-in
CET1			78,512			78,628
Basic capital			87,616			87,733
Eligible capital			105,905			106,226
Risk-weighted assets			640,507			640,382
			%			%
CET1 capital ratio			12.3			12.3
Tier 1 capital ratio			13.7			13.7
Total capital ratio			16.5			16.6

Fully-loaded CET1 ratio performance
%

Note: The phased-in ratio includes the transitory treatment of IFRS 9, calculated in accordance with article 473 bis of the Capital Requirements Regulation (CRR2) and subsequent modifications introduced by Regulation 2020/873 of the European Union. Total phased-in capital ratios include the transitory treatment according to chapter 4, title 1, part 10 of the CRR2.

1.Shareholder remuneration charged against profit earned in Q1 2024 (split between cash dividends and share buybacks) in line with our 50% payout target. The implementation of the shareholder remuneration policy is subject to future corporate and regulatory decisions and approvals.

2.On 1 January 2024, our systemic buffer requirement increased from 1% to 1.25% due to a higher D-SIB requirement due to i) a methodological change by the ECB which was later adopted by Banco de España and ii) because institutions must hold capital at the consolidated level for the higher of the G-SIB (currently at 1%) and D-SIB requirements. Additionally, the ECB revised Banco Santander, S.A.'s P2R requirement from 1.58% to 1.74%, mainly due to a change in the ECB's methodology.

18						January - March 2024

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Risk management

Risk management

Executive summary

Credit risk

Market risk

Despite the current macroeconomic environment, credit quality indicators remain within expected levels due to proactive risk management

VaR remained at moderate levels, despite persistent inflation and geopolitical tensions that led to occasional spikes in market volatility

Cost of risk

NPL ratio

Coverage ratio

Average VaR

1.20%

3.10%

66%

Q1'24

EUR 17 million

+EUR 4 mn / Q4'23

+2 bps vs. Q4'23

-4 bps vs. Q4'23

0 pp vs. Q4'23

Structural and liquidity risk

Operational risk

Robust and diversified liquidity buffer, with ratios well above regulatory requirements

The operational risk profile remained stable in the quarter. In terms of losses, there was a reduction compared to the previous quarter.

Liquidity Coverage Ratio (LCR)

160%

-6 pp vs. Q4'23

Credit risk 1

During the first quarter of the year, the main factors influencing market behaviour, affecting credit demand and household and corporate affordability were inflation (which remained high, but it is beginning to show signs of coming under control), the delay of central banks interest rate cuts and the uncertainty about economic growth.

Additionally, market volatility and economic activity were affected by other factors such as continuing geopolitical tensions, the pressure on fuel prices due to attacks on Russian refineries, and

the weakness of some regional banks in the US due to their commercial real estate exposures. On the other hand, China’s industrial production and retail sales exceeded expectations in the first two months of the year.

Our geographic diversification and business, together with our proactive risk management, based on customer knowledge and prudent balance sheet management, among others, help us to maintain a medium-low risk profile even in a less favourable macroeconomic and geopolitical environment.

			Key risk metrics
						Net loan-loss provisions 2												Cost of risk (%) 3												NPL ratio (%)												NPL coverage ratio (%)
						Q1'24			Chg (%) / Q4'23			Chg (%) / Q1'23						Q1'24			Chg (bps) / Q4'23			Chg (bps) / Q1'23						Q1'24			Chg (bps) / Q4'23			Chg (bps) / Q1'23						Q1'24			Chg (pp) / Q4'23			Chg (pp) / Q1'23
			Retail			1,523			(11.8)			(1.6)						1.03			0			11						3.24			3			5						60			(1.4)			(2.7)
			Consumer			1,137			1.5			24.5						2.12			8			32						4.86			12			82						76			(0.4)			(15.1)
			CIB			40			(80.5)			—						0.14			4			(2)						1.14			(22)			(28)						46			5.0			10.9
			Wealth			4			—			—						-0.05			2			(15)						0.64			(76)			(20)						62			32.3			(0.6)
			Payments			418			14.1			(14.4)						6.89			(34)			16						4.85			(18)			(13)						145			5.0			1.3
			TOTAL GROUP			3,125			(8.5)			6.9						1.20			2			15						3.10			(4)			5						66			0.1			(1.8)
			Europe			484			(17.5)			(26.3)						0.41			(3)			(1)						2.32			0			(3)						49			(0.2)			(1.9)
			North America			985			(12.6)			19.8						2.15			10			52						4.07			(2)			112						74			0.3			(20.7)
			South America			1,378			(11.0)			10.0						3.44			8			5						5.37			(35)			(62)						80			2.0			4.0
			DCBE			276			80.4			42.7						0.67			5			19						2.27			14			22						86			(1.9)			(7.4)
			TOTAL GROUP			3,125			(8.5)			6.9						1.20			2			15						3.10			(4)			5						66			0.1			(1.8)

1.Changes in constant euros.

2.EUR million and % change in constant euros.

3.Provisions to cover losses due to impairment of loans in the last 12 months / average customer loans and advances of the last 12 months.

For more detailed information, please see the Alternative Performance Measures section.

January - March 2024						19

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Risk management

In terms of credit quality during Q1 2024:

•The NPL ratio stood at 3.10% (-4 bps compared to Q4 2023), mainly due to the performance of credit impaired loans, which stood at EUR 35,637 million (stable in the quarter), supported by positive performances in CIB, Wealth and Payments that offset the increases in Retail (+1.8%) and Consumer (+1.7%). Gross credit risk with customers increased 1% in the quarter to EUR 1,150 billion, distributed mainly among Retail (57% of the Group’s total credit portfolio), Consumer (18%) and CIB (20%) businesses.

•Net loan-loss provisions rose 7% year-on-year to EUR 3,125 million affected by provisions in the US, Mexico, Brazil and DCB Europe. In the quarter, LLPs declined 9%, supported by Europe, North America and South America. The cost of risk was 1.20%, remaining in line with our target for the year.

•The total coverage ratio for credit impaired loans remained stable at 66%, with loan-loss allowances at EUR 23,542 million (stable in the quarter). The coverage ratio remained at comfortable levels considering that 68% of the Group’s portfolio has guaranteed.

The IFRS 9 stage distribution of the portfolio remained stable in the quarter in percentage terms.

Coverage ratio by stage
EUR billion
			Exposure1												Coverage
			Mar-24			Dec-23			Mar-23						Mar-24			Dec-23			Mar-23
Stage 1			1,007			1,000			1,005						0.4		%	0.4		%	0.4		%
Stage 2			83			80			72						6.3		%	6.4		%	7.4		%
Stage 3			36			36			34						40.5		%	40.6		%	40.1		%

1. Exposure subject to impairment. Additionally, in March 2024 there was EUR 25 billion in loans and advances to customers not subject to impairment recorded at mark to market with changes through P&L (EUR 19 billion in December 2023 and EUR 17 billion in March 2023).

Stage 1: financial instruments for which no significant increase in credit risk has been identified since its initial recognition.

Stage 2: if there has been a significant increase in credit risk since the date of initial recognition but the impairment event has not materialized, the financial instrument is classified in Stage 2.

Stage 3: a financial instrument is catalogued in this stage when it shows effective signs of impairment as a result of one or more events that have already occurred resulting in a loss.

Credit impaired loans and loan-loss allowances
EUR million
						Change (%)
			Q1'24			QoQ			YoY
Balance at beginning of period			35,620			0.2			2.7
Net additions			3,167			(25.9)			(1.9)
Increase in scope of consolidation			—			—			—
Exchange rate differences and other			45			—			(84.2)
Write-offs			(3,195)			(15.9)			(14.6)
Balance at period-end			35,637			0.0			3.5
Loan-loss allowances			23,542			0.2			0.7
For impaired assets			14,441			(0.2)			4.6
For other assets			9,101			0.8			(5.1)

Our Retail, Consumer, CIB and Payments businesses account for 95% of the Group's total portfolio. The performance of the main businesses in the first quarter was as follows:

						Retail & Commercial Banking			Credit risk exposure
									57% of total Group

Traditional banking business focusing on simplification and digitalization of products, services and processes and with a clear transformation strategy. It mainly comprises a high quality mortgage portfolio (where 90% of loans have an LTV lower than 80%) and a corporate portfolio where more than 53% have real guarantees or property collateral.

The NPL ratio rose 3 bps to 3.24%, driven by the increase in credit impaired loans, mainly in Europe. Gross credit risk with customers remained stable in the quarter, as the slight business growth in corporates was offset by the pre-payment of loans by individuals.

Net loan-loss provisions declined 2% year-on-year, mainly due to the positive performance of the European portfolios, and were 12% lower quarter-on-quarter driven by Europe and Brazil. The cost of risk stood at 1.03%, remaining at controlled levels and largely unchanged in the quarter.

The total coverage ratio of credit impaired loans decreased 1 pp in the quarter. This business includes the mortgage portfolios in Spain and the UK which have high-quality collateral, and so we are comfortable with the current coverage levels.

						Digital Consumer Bank			Credit risk exposure
									18% of total Group

Business mainly dedicated to vehicle financing through strategic alliances and leasing business.

The NPL ratio increased 12 bps in the quarter to 4.86%, as a result of the credit impaired loan growth (+2% compared to the December 2023), which amounted to EUR 10,114 million and was mainly affected by the European portfolios, while performance in the US was positive (motivated by the tax season). On the other hand, gross credit risk with customers remained stable in the quarter.

Net loan-loss provisions increased 24% year-o    n-year due to normalization in the US and +2% in the quarter affected by provisions in DCB Europe and Brazil, while performance in the US was positive (motivated by the tax season). The cost of risk stood at 2.12%, increasing in line with expectations.

The coverage of credit impaired loans stood at 76%, a level we are comfortable with, considering more than 80% of the portfolio is vehicles financing.

						Corporate & Investment Banking			Credit risk exposure
									20% of total Group

Business dedicated to supporting high credit quality wholesale clients (80% of which are rated above investment grade) providing them advisory and high value added solutions.

The NPL ratio stood at 1.14%, -22 bps in the quarter, due to the positive portfolio performance of the Group’s main countries, backed by a credit impaired loans reduction (-11% vs. December 2023). This was supported by the good results obtained in large corporates at the end of the year.

Net loan-loss provisions stood at EUR 40 million compared to net releases in Q1 2023. They improved 81% compared to Q4 2023

20						January - March 2024

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Risk management

when there were provisions for one-off cases in Brazil. The cost of risk stood at 0.14%.

The coverage ratio of credit impaired loans was 46%, +5 pp in the quarter, which we believe to be an adequate level considering the credit quality of the portfolio.

						Payments			Credit risk exposure
									2% of total Group

Includes PagoNxt (one of the largest payment processors and account-to-account direct transfers) which brings together all the Group’s payments businesses and Cards (with about 100 million cards worldwide).

The NPL ratio stood at 4.85% (-18 bps vs. the previous quarter), due to the reduction in impaired loans, which showed a slight improvement in the quarter (-2%), on the back of the positive performance in South America (-2%) and Mexico (-4%). On the other hand, gross credit risk with customers increased 1% compared to Q4 2023.

Net loan-loss provisions, which are mainly in the Cards portfolio, fell 14% year-on-year, driven primarily by Brazil, but picked up 14% compared to Q4 2023. The cost of risk was 6.89%.

The total coverage ratio of credit impaired assets increased by 5 pp in the quarter, remaining at levels we are comfortable with.

Market risk

Focus remained on the central bank meetings. In the quarter, the Fed left the federal funds target rate range unchanged, and the Bank of England and the ECB also held their interest rates. Stock markets rose and market rates have become more volatile driven by expectations of rate cuts by the main central banks.

In Latin America, monetary policy meetings led to interest rate cuts in the quarter as expected in Brazil (-100 bps to 10.75%) and Mexico (-25 bps to 11%). In markets, exchange rates were stable (except for the Chilean peso).

The market risk associated with global corporate banking trading activity is focused on serving the needs of our customers. It is measured in terms of daily VaR at 99% and is mainly produced by possible interest rate movements.

In the first quarter, the average VaR reached a value of EUR 17 million (EUR 4 million more than the previous quarter), due to the persistent geopolitical and macroeconomic tensions. In the second half of the period, VaR experienced a slight rise mainly due to increased exposure to interest rate risk in South America.

By market risk factor, VaR continued to be mostly driven by interest rate risk. These VaR figures remained low compared to the size of the balance sheet and the activity of the Group.

Trading portfolios.1 VaR by geographic region
EUR million
			2024									2023
First quarter			Average			Last						Average
Total			17.3			19.2						11.3
Europe			12.7			11.1						9.0
North America			6.6			5.6						2.7
South America			9.3			11.9						6.6

1. Activity performance in Santander Corporate & Investment Banking markets.

Trading portfolios.1 VaR by market factor
EUR million
First quarter 2024			Min.			Avg.			Max.			Last
VaR total			11.6			17.3			22.5			19.2
Diversification effect			(12.9)			(18.5)			(25.4)			(15.9)
Interest rate VaR			11.4			17.2			23.1			18.7
Equity VaR			2.8			4.2			6.0			3.5
FX VaR			4.2			6.1			8.4			5.0
Credit spreads VaR			4.1			5.2			6.2			4.5
Commodities VaR			2.0			3.2			4.1			3.4

1.Activity performance in Santander Corporate & Investment Banking markets.

Note: In the North America, South America and Asia portfolios, VaR corresponding to the credit spreads factor other than sovereign risk is not relevant and is included in the interest rate factor.

Trading portfolios1. VaR performance
EUR million

January - March 2024						21

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Risk management

Structural and liquidity risk

Structural exchange rate risk: Mainly driven by transactions in foreign currencies related to permanent financial investments, their results and related hedges. Our dynamic management of this risk seeks to limit the impact of foreign exchange rate movements on the CET1 ratio. In the quarter, hedging of currencies impacting this ratio remained close to 100%.

Structural interest rate risk: In Q1 2024, market interest rates continued to show high levels of volatility, conditioned by inflation trends and expectations for the upcoming monetary policy adjustments from major central banks. Markets have faced persistent inflation in the first three months of the year and pushed rate cut expectations back until June/July. Despite volatility, our structural debt portfolios performed positively and risk remained at levels we are comfortable with during the period.

Liquidity risk: The Group maintained its comfortable liquidity risk position in the quarter, supported by a robust and diversified liquidity buffer, with ratios well above regulatory limits.

Operational risk

Our operational risk profile remained stable in the Q1 2024. In terms of operational risk losses, there was a decrease in losses compared to the previous quarter. Fraud and legal processes continued to be the main causes, which are concentrated in the Group’s Retail business.

The Group closely monitors the evolution of operational risks in general, and technological risk in particular, arising from transformation plans, as well as cyber risk, services provided by third parties, external fraud and the most relevant legal processes.

22						January - March 2024

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Financial information by segment

Description of segments

As we previously announced, following the creation of two new global segments and in order to align the operating and management model, we have adapted our reporting, starting with the financial information for this first quarter of 2024, with global businesses becoming the primary segments.

Main changes to the composition of Santander's segments

The main changes, which apply from 1 January 2024 to the management information for all periods included in the consolidated financial statements, are as follows:

•All of the bank's businesses across all markets have been consolidated into five global areas: Retail & Commercial Banking, Digital Consumer Bank, Corporate & Investment Banking, Wealth Management & Insurance and Payments. These become the new primary segments.

•The changes in financial information are:

–The former Retail Banking has been split into two new segments: Retail & Commercial Banking and Digital Consumer Bank. Our cards business now forms part of the new Payments segment.

–The results of activities mainly related to financial management located in the countries are fully allocated to their global businesses based on the segment that generates the financial position.

–The local corporate centres are fully allocated to each global business.

–The revenue sharing criteria between global businesses have been revised to better reflect the contribution of each business to the Group.

•The former primary segments (Europe, North America, South America and Digital Consumer Bank - which is renamed DCB Europe) are now our secondary segments. 2023 published figures for the countries, regions and the Corporate Centre remain unchanged.

All the changes described above have no impact on the reported Group consolidated financial statements.

New composition of Santander's segments

Primary segments

This primary level of segmentation, which is based on the Group's management structure from 1 January 2024, comprises six reportable segments: five operating areas plus the Corporate Centre.

The operating areas are:

Retail & Commercial Banking (Retail): new area that integrates the retail banking business and commercial banking (individuals, SMEs and corporates), except for business originated in the consumer finance and the cards businesses.

Digital Consumer Bank (Consumer): comprises all business originated in the consumer finance companies, plus Openbank, Open Digital Services (ODS) and SBNA Consumer.

Corporate & Investment Banking (CIB): this business, which includes Global Transaction Banking, Global Banking (Global Debt Finance and Corporate Finance) and Global Markets, offers products and services on a global scale to corporate and institutional customers, and collaborates with other global businesses to better serve our broad customer base.

Wealth Management & Insurance (Wealth): includes the asset management business (Santander Asset Management), the corporate unit of Private Banking and International Private Banking in Miami and Switzerland and the insurance business (Santander Insurance).

Payments: digital payments solutions, providing global technology solutions for our banks and new customers in the open market. It is structured in two businesses: PagoNxt (Getnet, Ebury and PagoNxt Payments) and Cards (cards platform and business in the countries).

Secondary segments

At this secondary level, Santander is structured into the segments that made up the primary segments until 2023, which are Europe, North America, South America and DCB Europe:

Europe: comprises all business activity carried out in the region, except that included in DCB Europe. Detailed financial information is provided on Spain, the UK, Portugal and Poland.

North America: comprises all the business activities carried out in Mexico and the US, which includes the holding company (SHUSA) and the businesses of Santander Bank, Santander Consumer USA (SC USA), the specialized business unit Banco Santander International, the New York branch and Santander US Capital Markets (SanCap).

South America: includes all the financial activities carried out by Santander through its banks and subsidiary banks in the region. Detailed information is provided on Brazil, Chile, Argentina, Uruguay, Peru and Colombia.

DCB Europe: includes Santander Consumer Finance, which incorporates the entire consumer finance business in Europe, Openbank in Spain and ODS.

January - March 2024						23

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

In addition to these operating units, both at the primary and secondary segment level, the Group continues to maintain the area of Corporate Centre, which includes the centralized activities relating to equity stakes in financial companies, financial management of the structural exchange rate position, assumed within the sphere of the Group’s assets and liabilities committee, as well as management of liquidity and of shareholders’ equity via issuances.

As the Group’s holding entity, this area manages all capital and reserves and allocations of capital and liquidity with the other businesses. It also incorporates goodwill impairment but not the costs related to the Group’s central services (charged to the areas), except for corporate and institutional expenses related to the Group’s functioning.

The businesses included in each of the segments in this report and the accounting principles under which their results are presented here may differ from the businesses included and accounting principles applied in the financial information separately prepared and disclosed by our subsidiaries (some of which are publicly listed) which in name or geographical description may seem to correspond to the business areas covered in this report. Accordingly, the results of operations and trends shown for our business areas in this document may differ materially from those of such subsidiaries. As explained on the previous page, the results of our segments presented below are provided on the basis of underlying results only and include the impact of foreign exchange rate fluctuations. However, for a better understanding of the changes in the performance of our business areas, we also provide and discuss the year-on-year changes to our results excluding such exchange rate impacts (except for Argentina, see methodology in the section 'Alternative performance measures' in the appendix to this report). Certain figures contained in this report, have been subject to rounding to enhance their presentation. Accordingly, in certain instances, the sum of the numbers in a column or a row in tables contained in this report may not conform exactly to the total figure given for that column or row.

24						January - March 2024

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

January-March 2024
Main items of the underlying income statement
EUR million
Primary segments			Net interest income			Net fee income			Total income			Net operating income			Profit before tax			Profit attributable to the parent
Retail & Commercial Banking			7,145			1,193			8,048			4,744			2,376			1,503
Digital Consumer Bank			2,710			354			3,185			1,874			619			464
Corporate & Investment Banking			1,062			654			2,112			1,225			1,107			705
Wealth Management & Insurance			423			364			892			585			557			400
Payments			675			676			1,353			703			265			137
PagoNxt			31			224			283			(21)			(27)			(39)
Cards			644			452			1,070			724			292			177
Corporate Centre			(31)			(1)			(210)			(297)			(340)			(357)
TOTAL GROUP			11,983			3,240			15,380			8,833			4,583			2,852
Secondary segments
Europe			4,123			1,202			5,809			3,504			2,438			1,541
Spain			1,816			746			3,016			1,984			1,236			772
United Kingdom			1,185			79			1,257			523			415			305
Portugal			431			127			584			450			440			303
Poland			686			176			834			605			412			213
Other			5			74			118			(57)			(65)			(53)
North America			2,611			638			3,485			1,824			776			644
US			1,396			267			1,869			929			274			279
Mexico			1,214			359			1,608			943			558			411
Other			1			12			9			(48)			(56)			(47)
South America			4,185			1,182			4,887			3,058			1,308			796
Brazil			2,630			846			3,507			2,351			977			561
Chile			352			129			527			303			160			90
Argentina			1,025			131			555			270			104			101
Other			178			75			297			134			68			43
DCB Europe			1,095			220			1,410			745			401			229
Corporate Centre			(31)			(1)			(210)			(297)			(340)			(357)
TOTAL GROUP			11,983			3,240			15,380			8,833			4,583			2,852

Profit attributable to the parent distribution1
Q1 2024

1. As a % of operating areas. Excluding the Corporate Centre.

Profit attributable to the parent. Q1 2024
EUR million. % change YoY

Var			Var2
+26		%	+22		%
-5		%	-5		%
-5		%	-5		%
+27		%	+25		%
+29		%	+22		%
+27		%	+30		%
-2		%	+3		%
+1		%	+1		%
-6		%	-6		%

    

2. Changes in constant euros.

January - March 2024						25

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

January-March 2023
Main items of the underlying income statement
EUR million
Primary segments			Net interest income			Net fee income			Total income			Net operating income			Profit before tax			Profit attributable to the parent
Retail & Commercial Banking			5,931			1,074			6,919			3,809			1,731			1,196
Digital Consumer Bank			2,546			288			3,061			1,744			756			488
Corporate & Investment Banking			844			606			2,004			1,263			1,183			742
Wealth Management & Insurance			334			308			758			467			444			316
Payments			582			770			1,316			726			241			107
PagoNxt			9			218			244			(34)			(43)			(55)
Cards			573			551			1,072			760			284			162
Corporate Centre			(52)			(3)			(124)			(219)			(260)			(279)
TOTAL GROUP			10,185			3,043			13,935			7,790			4,095			2,571
Secondary segments
Europe			3,597			1,168			5,171			3,004			1,846			1,189
Spain			1,460			752			2,547			1,533			739			466
United Kingdom			1,283			83			1,368			694			542			395
Portugal			261			124			405			273			261			180
Poland			586			145			729			531			336			167
Other			7			65			122			(28)			(32)			(19)
North America			2,448			521			3,141			1,641			815			627
US			1,465			190			1,827			915			346			300
Mexico			983			320			1,300			760			504			359
Other			0			12			14			(33)			(35)			(32)
South America			3,163			1,166			4,404			2,680			1,247			790
Brazil			2,105			817			3,057			1,977			765			469
Chile			371			153			606			352			245			150
Argentina			532			137			501			251			179			139
Other			154			59			239			100			59			31
DCB Europe			1,029			191			1,343			684			447			244
Corporate Centre			(52)			(3)			(124)			(219)			(260)			(279)
TOTAL GROUP			10,185			3,043			13,935			7,790			4,095			2,571

26						January - March 2024

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Primary segments

						Retail & Commercial Banking			Underlying attributable profit
									EUR 1,503 mn
→ To support our vision of becoming a digital bank with branches, we continued to boost our ONE Transformation programme with the implementation of a common operating model and the rollout of our global technological platform. → Loans fell 2% year-on-year in constant euros due to lower mortgage balances in Europe, partially offset by growth in South America and Mexico. Deposits rose 2% in constant euros. → Attributable profit of EUR 1,503 million, increasing 26% year-on-year (+22% in constant euros) driven by the good revenue performance, efficiency gains from our transformation programme and lower provisions in Europe.

Strategy

As a final step in our ONE Santander strategy, in September 2023, we announced the consolidation of retail and commercial banking activities into a new global business, Retail & Commercial Banking, which becomes one of our new main segments.

In the first quarter of the year, we advanced in our strategic priorities:

•Implement a common operating model, leveraging the Group’s global scale and our local presence, with the vision of making Santander into a digital bank with branches. We are working on offering all our products and services digitally through our global platform and use our branch network to advise and help our customers.

Our goal is to provide the best products and grow sustainably, thereby improving efficiency and profitability.

We have 140 million customers who can access most of our products and services digitally. Sales through our web and apps continued to increase double digits and digital customers continued to rise.

We have a network of more than 8,000 branches, present in 12 markets. Branches continued to strengthen their role as an essential driver of sales and advisory, reducing operational activities and increasing their commercial functions.

•Continue our transformation efforts, based on three pillars:

–Customer experience. We reduced the number of products 17% year-on-year and 2% quarter-on-quarter, as part of our commitment to offer a simple and attractive product portfolio that provides the best experience for our customers. We also continued to innovate in new products and services, such as the new functionality launched in Spain that allows cash

withdrawals from ATMs using the mobile app, without needing the physical card.

–Operational leverage. In the year to date, we have reduced the number of resources dedicated to non-commercial activities per million customers by 3% and resources dedicated to operational activities per million customers by 11%, boosted by the economies of scale, process automation and organization simplification.

–Global Technology Platform. Our goal is to leverage the Group's scale and roll out a global platform. This platform is based on our back-end Gravity technology (for which The Banker named us The Most Innovative Bank), and on ODS’s in house, cloud-based technology for our apps and websites. Both are proprietary technology and they allow us to build digital solutions once for all of our countries with a lower service cost. The number of transactions running through Gravity (which is already operative in the UK, Spain and Chile), continued to grow, reducing unit costs per transaction. The app is available in Spain, Portugal and Poland and we will launch it in the UK, Brazil and Uruguay during the year.

•Profitable growth and structural efficiency improvements are key for our business. The convergence towards a common model and our transformation efforts, together with disciplined capital allocation and rotation are reflected in a higher RoTE and a better efficiency ratio. Customer growth (+4% year-on-year, driven by new digital processes to attract customers), cost efficiencies and higher revenue (partially due to improved customer experience and higher commercial advisory) were significant drivers of these results.

Retail. Customers. March 2024

Thousands and year-on-year change

												Europe									North America						South America
Total customers									140,381			46,200			14,986			22,449			20,610			20,595			73,571			63,889
									+4%			+2%			+4%			0%			+2%			+2%			+6%			+6%
Active customers									76,003			28,435			8,358			13,765			10,355			10,341			37,213			30,616
									+2%			+3%			+6%			-1%			+7%			+5%			+1%			-2%

January - March 2024						27

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Primary segments

Business performance

Loans and advances to customers decreased 1% year-on-year. Minus reverse repos and in constant euros, gross loans were 2% lower, due to individuals, SMEs and, to a lesser extent, corporates.

In individuals, mortgage balances fell in the UK (in line with our strategy to increase profitability and deleverage). Likewise, mortgages in Spain and Portugal also declined, still impacted by prepayments (but new business volumes are picking up). This was partially offset by increases in Mexico, Brazil, Chile and Poland. Personal loans performed well across countries, with double-digit growth in Brazil, Mexico and Poland.

SME loans decreased due to declines in Spain, the UK and Portugal, partially compensated by higher volumes in Brazil and Poland. Corporate loans fell slightly, impacted by Europe, however they rose in Mexico and Brazil.

Customer deposits increased 3% year-on-year. Minus repurchase agreements and in constant euros, they rose 2%, with a migration from demand (-3%, with declines across most countries) to time (+22%, rising in individuals, SMEs and corporates) and mutual funds (+13%) due to the current interest rate environment. As a result, customer funds increased 3% in constant euros.

						Retail. Business performance. March 2024
						EUR billion and YoY % change in constant euros
						621			-2%						732			+3%

Gross loans and advances to customers excl. reverse repos

Customer deposits excl. repos + mutual funds

Results

Attributable profit in Q1 2024 was EUR 1,503 million, 26% higher year-on-year, despite the impact of temporary levy on revenue earned in Spain. In constant euros, profit rose 22% year-on-year, as follows:

•Total income rose 13%, driven by net interest income, net fee income and gains on financial transactions which more than offset the impact of hyperinflation adjustment in Argentina.

Retail. Total income. March 2024

EUR billion and YoY % change in constant euros

						Others

Var
+27%
-12%
+8%
+19%
+18%

    

			EUR 8,048 mn						+13%

Net interest income increased 17%, with widespread increases across our main countries, but especially in Spain and Portugal (good margin management), in Brazil (strong growth driven by volumes and lower cost of deposits in a context of interest rate cuts), in Argentina, and to a lesser extent in Mexico (higher volumes) and Poland (higher commercial activity and lower cost of deposits). The exception was the UK, where net interest income was impacted by lower mortgage loans (in line with our strategy) and higher deposit costs, in a very competitive market.

The optimization of our product and service offering and higher transactionality boosted net fee income growth (+9%) mainly in Brazil (account maintenance and insurance fees), Mexico (insurance fees), Poland (related to FX) and Portugal. There was a double-digit rise in gains on financial transactions driven by Brazil and Mexico.

•Costs rose 4%, as good performances in Spain and the US reflecting transformation efforts, were more than by offset higher costs in the UK, Poland and Brazil (impacted by salary increases) and in Mexico (due to investments in transformation and personnel expenses). In real terms, costs remained flat.

The efficiencies gained from our global platform and process simplification and automation contributed to an efficiency ratio improvement of -3.9 pp year-on-year to 41.1%.

•Net loan-loss provisions decreased slightly (-2%), mainly due to in Europe (lower activity in Spain and Portugal, macro improvement in the UK and lower provisions in Poland), which offset higher provisions in Brazil, Mexico and Chile (relating to increased activity).

The cost of risk remained controlled at 1.03% (compared to 0.92% in March 2023 and 1.02% in December 2023). The NPL ratio stood at 3.24% (3.19% in March 2023).

RoTE in Q1 2024 was 15.6% (17.6% annualizing the impact of temporary levy on revenue earned in Spain).

Compared to the previous quarter, profit before tax grew 25% in constant euros, driven by the good performance in net interest income, net fee income and provisions. However, these aspects were not fully reflected in attributable profit performance (-2% in constant euros) due to temporary levy on revenue earned in Spain and higher tax burden mainly in Brazil (tax benefit in the fourth quarter).

Retail. Underlying income statement

EUR million and % change

/

Q4'23

/

Q1'23

Q1'24

%

excl. FX

%

excl. FX

Total income

8,048

+9

+9

+16

+13

Expenses

-3,304

+7

+7

+6

+4

Net operating income

4,744

+10

+10

+25

+21

LLPs

-1,523

-12

-12

+1

-2

PBT

2,376

+22

+22

+37

+33

Attributable profit

1,503

-2

-2

+26

+22

Detailed financial information in appendix

28						January - March 2024

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Primary segments

						Digital Consumer Bank			Underlying attributable profit
									EUR 464 mn
→ Our priority is to continue expanding our leadership in consumer finance across our footprint. Additionally, we continued to focus on converging towards a more digital global operating model, as well as building flexible term products (leasing, subscription) using common platforms. → Loans increased 4% in constant euros, +5% in auto, in a market that is starting to show signs of recovery. Deposits rose 13%, in line with our strategy aimed at lowering funding costs and reducing net interest income volatility in the current interest rate environment. → Attributable profit reached EUR 464 million, a 5% decrease year-on-year (-5% also in constant euros), mainly due to the cost of risk normalization towards pre-pandemic levels, and despite the good net operating income performance (+7%) driven by total income growth (+4%) and cost control.

Strategy

Digital Consumer Bank (Consumer) is the world leader in auto financing. It operates in 26 markets in Europe, North America and South America and it serves the financing needs at the point of sale (both physical and digital) of 25 million customers. Openbank brings advanced digital and retail banking capabilities.

The vision for Consumer is to become the preferred partner of our end customers and partners, offering greater profitability and value creation.

We are transforming our operating model, thus responding to the changes that the entire mobility and consumer finance ecosystem is undergoing:

•Offering global solutions, integrated into our partners' (OEMs, importers or retailers) processes, accompanying them as their increasingly digital business models evolve. During the first quarter, we generated or materialized collaboration opportunities with more than ten business partners interested in taking advantage of the technological and global implementation capabilities we offer. We continue to work on improving local relationships with manufacturers to achieve global agreements that help drive the business forward.

•Simplifying and automating our processes to improve customer experience and increase scalability. In Q1 2024, we worked on improving the 100% digital sales process.

•Building and developing global platforms such as the leasing platform already launched in two European markets having expanded its functionalities during the quarter, Zinia’s technology in buy now, pay later (BNPL), operative in Germany, and Openbank's platform and business model, that will be implemented in the US and Mexico in H2 2024. Launching Openbank in the US will accelerate our profitable growth strategy, by capturing deposits to fund our leading auto franchise. Additionally, we are converging our back-end and key processes in our markets to the Group.

As part of our strategy, we are also focusing on deposit gathering as the main funding source and actively managing our balance sheet as our priority is to make the business more capital light.

The main priorities of the regions are:

•In Europe, advancing in the transformation of the operating model, as a first step towards a global transformation. We progressed in the optimization of structures and functions and in the centralization and relocation of operational activities to promote efficiency gains.

•In the US, working on the incorporation of new strategic agreements and exploiting synergies through the transformation and greater integration of our auto and retail businesses.

•In South America and Mexico, continue driving greater profitable growth.

Consumer. Total Customers
Millions

			0%

Business performance

After a difficult environment in previous years, Q1 2024 showed signs of recovery resulting from inflation moderation, lower rate expectations and auto sales growth in our main markets.

In this environment, new lending increased 7% year-on-year, especially in South America (mainly Brazil) while in DCB Europe, new business decreased slightly driven by non-auto business.

In auto (approximately 80% of our credit portfolio), we have continued to prioritize new business profitability over volumes growth in a high interest rate environment which will support a progressive improvement in RoRWA going forward.

The stock of loans and advances to customers rose 5%. In gross terms, excluding reverse repos and in constant euros, loans reached EUR 208 billion, 4% more than in March 2023. We continued to proactively monitor our portfolios to prevent the impact of their deterioration on our activity.

January - March 2024						29

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Primary segments

We have a EUR 17 billion leasing portfolio which increased 4% year-on-year in constant euros, as growth in DCB Europe more than offset a decline in the US due to higher volume of repurchases by dealers in the US (despite increased electric vehicle activity).

In terms of liabilities, our access to wholesale financing markets remained strong and diversified. Customer deposits, which accounted for 57% of total funding, increased 12% year-on-year. They grew substantially (+13%) excluding repos and in constant euros, in line with our strategy to lower funding costs and reduce net interest income volatility in the current interest rate environment. By market, they rose 21% in DCB Europe and 4% in the US. Mutual funds increased from very low levels. As a result, customer resources rose 13% year-on-year in constant euros.

Consumer. Business. March 2024

EUR billion and YoY % change in constant euros

208

+4%

126

+13%

DCB Europe
US

DCB Europe
US

Gross loans and advances to customers excl. reverse repos

Customer deposits excl. repos + mutual funds

Consumer. Leasing portfolio. March 2024
EUR billion and YoY % change in constant euros
Total leasing			17			+4%

Results

In Q1 2024, attributable profit reached EUR 464 million, 5% lower than the same quarter of 2023. In constant euros, profit also decreased 5% (-2% excluding the impact of the temporary levy on revenue earned in Spain). By line:

•Total income improved 4%, mainly due to net interest income, which grew 7%, and net fee income, which grew 22% in the period, while other revenue fell 44%.

Net interest income was driven by DCB Europe, with a 6% increase supported by higher volumes and active asset repricing, and Brazil, +19% favoured by higher volumes and lower interest rates. This great result more than offset a weaker performance in the US, which was affected by a high interest rate environment.

Consumer. Total income. March 2024

EUR billion and YoY % change in constant euros

DCB Europe
US*
Other

Var
+5		%
-3		%
+27		%

* The year-on-year change in US revenue was roughly flat if we include the impact of the EV incentives in the tax line.

Net fee income grew strongly in DCB Europe and Brazil, driven by insurance intermediation activity. It also rose, albeit at a slower pace, in the US (higher overdraft fees).

Other income was impacted by the fall in leasing income in the US due to higher repurchases by dealers and the increase in EV leasing activity as we are passing on some of the fiscal benefits (recorded in the tax line) to customer prices.

•Costs remained flat, supported by good management in the US (-9%) and DCB Europe (almost flat), which allowed to absorb the impacts of inflation, strategic investments in leasing and BNPL platforms and business growth. All considered, net operating income increased 7% and the efficiency ratio stood at 41.2%.

•Net loan-loss provisions increased 24%, affected by credit quality normalization towards pre-pandemic levels (but still below our historical average), volumes growth, some regulatory impacts and lower portfolio sales than in 2023. Cost of risk remained controlled at 2.12%, also normalizing, and the NPL ratio stood at 4.86%.

RoTE in Q1 2024 was 11.2% (11.9% annualizing the impact of the temporary levy on revenue earned in Spain).

Compared to Q4 2023, profit rose 1% (in constant euros) supported by net interest income and net fee income growth, and good cost performance in the US, which offset lower gains on financial transactions and the impact of the temporary levy.

Consumer. Underlying income statement

EUR million and % change

/

Q4'23

/

Q1'23

Q1'24

%

excl. FX

%

excl. FX

Total income

3,185

+1

+1

+4

+4

Expenses

-1,311

-4

-4

0

0

Net operating income

1,874

+5

+5

+7

+7

LLPs

-1,137

+1

+2

+24

+24

PBT

619

+4

+3

-18

-18

Attributable profit

464

+2

+1

-5

-5

Detailed financial information in appendix

30						January - March 2024

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Primary segments

						Corporate & Investment Banking			Underlying attributable profit
									EUR 705 mn
→ We continue making our centres of expertise more sophisticated, deepening client relationships with a particular focus on the US build-out strategy to complement our already established capabilities, and actively managing capital. → Strong activity year-on-year, supported by Global Banking (Global Debt Finance and Corporate Finance) and Global Markets, slightly offset by weaker Global Transaction Banking due to Cash Management. → Attributable profit reached EUR 705 million, a 5% drop year-on-year (in euros and in constant euros). Record quarterly revenue, with increasing costs due to the investments in the development of new capabilities and higher provisions. However, we maintained a leading position in efficiency and profitability.

Strategy

Innovation will continue to transform the global economy and shape competition as new technology develops. In this changing environment, the corporate and investment banking industry will continue to coexist with fintechs, digital assets and new digital players (e.g. virtual asset services providers), presenting exciting collaboration opportunities within new sectors.

Substantial transition finance opportunities remain in ESG (e.g. Inflation Reduction Act, Net Zero initiatives) and selected sectors are expected to present significant financial needs, namely in infrastructure, energy, life sciences, healthcare and technology.

At Santander, we are well prepared to capitalize on these opportunities, given our unique combination of global approach and local leadership, which we demonstrate through our position in various rankings.

We continue to make progress in the execution of our strategy to become a focused, world-class CIB business, positioning ourselves as a trusted advisor to our clients while delivering profitable growth and maintaining dynamic capital management.

In Q1 2024, we made the following progress across our priorities:

•We are making our centres of expertise more sophisticated, while we continue building the Global Markets (GM) business to increase activity with our corporate and institutional clients and further leverage technology, making use of AI.

Our ambitious Global Markets plan will help us grow our markets business, leveraging Santander's geographical footprint and existing platforms and, at the same time, focusing on institutional clients. Through this plan, we will also rebalance our client portfolio towards financial institutions, with the same set of products, reaching a wider client base and increasing cross-border flows.

We are starting to reap the rewards of our investments in 2023, with solid performances in institutional sales in European and US markets.

•We are deepening our client relationships to boost strategic dialogue with them and grow our wallet share by accelerating advisory and increasing sales of value-added products and services.

We are particularly focused on taking our CIB US franchise to the next level, selectively expanding our client universe and product capabilities in areas adjacent to our strengths.

The US build-out is an initiative that complements CIB US's capabilities to target untapped wallets in M&A, Equities, Debt Capital Markets (DCM) and Leveraged Finance, covering all CIB clients across the Group. A global Leveraged Finance franchise will help us to create deeper relationships, especially in the US and EMEA, and lead to follow-on financing, M&A and Equity Capital Markets (ECM) revenue opportunities. This will support higher profitability levels while maintaining a prudent risk management approach.

Additionally, delivering CIB’s products and services to the Group’s customer base and fostering collaboration with other Group businesses remain a priority.

•We continued to actively manage capital to optimize returns through our Originate-to-Share model which accelerates asset rotation and increases global origination.

January - March 2024						31

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Primary segments

Business performance

A high proportion of CIB's activity is customer related (81% of total income), remaining stable around those levels. Moreover we have a high and growing percentage of capital-light activity and we actively manage our balance sheet, as reflected in our total revenue over risk-weighted assets ratio, which has improved 1.2pp since 2022 to 7.1%.

CIB's loan book is concentrated in our Global Transaction Banking (GTB) and Global Banking (GB) businesses. Customer loans remained flat year-on-year. In gross terms, excluding reverse repos and in constant euros, they declined 1%. Customer deposits rose 8% year-on-year. Excluding repos and in constant euros, they rose 1%.

By business line, we had the following performance:

•In Global Transaction Banking, activity was lower year-on-year, mainly in Cash Management, affected by recent interest rate cuts in Latin America, partially mitigated by our enhanced value proposition (e.g. a new solution for collections reconciliation).

Trade & Working Capital Solutions had another solid quarter performance. Large corporations are consolidating local working capital facilities into more sophisticated global programmes, where our integrated global supply chain finance platform stands out.

We continue to lead the market in Export Finance. We participated in the largest ever non-recourse green financing deal (USD 5.1 billion) for Northvolt's gigafactory.

•Global Banking had an excellent quarter, with significant growth year-on-year in both Global Debt Financing (GDF), with DCM gaining market share in Europe and the US, and Corporate Finance (CF), where there is positive market momentum, though volumes remain below historical averages.

We closed several important deals in GDF, including our participation in the largest covered bond issuance since the financial crisis by Toronto Dominion, or the largest USD bond issuance in Latin America in five years by the United Mexican States. In Structured Finance, there was very low activity levels in the global infrastructure sector and greenfield developments.

In CF, we continued to be active in M&A, advising clients from all industries and participating in important and complex transactions in the telecom sector (TMT). In ECM, we acted as joint bookrunner in Albemarle’s public offering of mandatory convertible preferred stock (USD 2.3 billion).

•In Global Markets, activity almost recovered to Q1 2023 record levels, after a weaker Q4 2023. By region, good performance in Europe, where clients are usually more active in the first quarter of the year, and the US, where activity increased mainly driven by securitized products with new activities such as warehouse lending, and by credit, which benefited from new issuance fees and higher secondary trading activity in emerging markets. Brazil saw lower activity.

Results

Attributable profit in the Q1 2024 decreased 5% year-on-year to EUR 705 million. In constant euros, profit also decreased 5%, with the following detail:

•Total income rose 5% year-on-year, backed by net interest income and net fee income. Net interest income grew 25% due to the improvement in Global Markets and GDF and also to the good performances in Export Finance and Trade Finance in GTB, partially offset by lower activity in Cash Management. Net fee income grew 7%, particularly in GB, and gains on financial transactions fell 3% due to lower results in Global Markets.

By region, good revenue performance in North America offset the decrease in Europe and South America.

CIB. Total income by region. March 2024.

EUR million and % change in constant euros

						Europe
			North America
						South America

Var
-1		%
+40		%
-5		%

By business, revenue growth was mainly driven by Global Banking (+18%), on the back of strong activity in GDF and CF, which increased revenue by 50%, and by Global Markets (+12%) with overall gains in trading books and increases in institutional client flows. GTB declined 3%, after a record quarter in Q1 2023.

CIB. Total income by business. March 2024.

EUR million and % change in constant euros

Note: total income includes less material revenue from other activities (EUR 28 million in Q1'23 and -EUR 37 million in Q1'24).

•Costs increased 19% impacted by our investments in new products and capabilities in line with our strategy. The efficiency ratio stood at 42.0% and remained one of the best in the sector.

•Net loan-loss provisions amounted to EUR 40 million, versus net releases of EUR 24 million in Q1 2023.

RoTE was 19.2% in Q1 2024 (19.7% annualizing the impact of the temporary levy on revenue earned in Spain), supported by our efforts in capital management.

Compared to Q4 2023, profit rose 140% in constant euros, due to higher activity in Europe and lower costs and provisions (following one-off cases recorded in Brazil in Q4 2023).

			CIB. Underlying income statement
			EUR million and % change
									/			Q4'23									/			Q1'23
						Q1'24			%			excl. FX									%			excl. FX
			Total income			2,112			+24			+24									+5			+5
			Expenses			-888			-12			-12									+20			+19
			Net operating income			1,225			+77			+77									-3			-3
			LLPs			-40			-80			-81									—			—
			PBT			1,107			+137			+139									-6			-7
			Attributable profit			705			+139			+140									-5			-5
			Detailed financial information in appendix

32						January - March 2024

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Primary segments

						Wealth Management & Insurance			Underlying attributable profit
									EUR 400 mn
→ We are continuing to build the best wealth and insurance manager in Europe and the Americas supported by our leading global private banking platform and our best-in-class funds and insurance product factories that leverage our scale and global capabilities to offer the best value proposition to our customers. → Total assets under management reached an all-time high of EUR 482 billion, 14% higher year-on-year, due to positive commercial activity. In Insurance, gross written premiums in the period reached EUR 3.0 billion. → Attributable profit amounted to EUR 400 million, 27% higher year-on-year (+25% in constant euros), with an RoTE of 77%. Including fees ceded to the branch network, Wealth's total contribution to Group profit reached EUR 838 million, +18% vs. Q1 2023 (+16% in constant euros).

Strategy

Our Wealth Management & Insurance business was established in 2017 with the aim of enhancing our service model and value proposition as part of a common platform that leverages Santander's scale and capabilities.

Since then, it has been a relevant growth driver for the Group through our three businesses, delivering consistent double-digit growth and generating around one third of the Group's total fees, including those recorded in Retail & Commercial Banking.

•Santander Private Banking (PB) is our leading global platform serving our private banking customers across 11 countries. We have a best-in-class service model and value proposition connecting clients and countries through a single platform.

•Santander Asset Management (SAM) is our global asset manager, which manufactures investment solutions for retail and institutional customers, with presence in more than ten countries and over 52 years of experience. SAM makes the most of its local client knowledge and global capabilities to provide customers the best investment opportunities.

•Santander Insurance provides protection solutions following a model based on strategic alliances with leading insurance companies, that enable us to have a comprehensive value proposition across 12 countries. We pair this with in-person and digital distribution capabilities to better serve our clients.

We continue to build the best wealth and insurance manager in Europe and the Americas underpinned by the following strategic initiatives:

•In Private Banking, we already have a best-in-class global platform leading the investment flows between Latin America, Europe and the US. Going forward, we are developing key growth opportunities to expand our footprint, such as the US domestic market and Middle East.

We also continue to complete our sophisticated value proposition in all countries with alternatives products, which exceeded EUR 3.2 billion in total commitments and more than

Private Banking clients
Thousands

			13%

EUR 48 billion in discretionary managed portfolios. Finally, we continue to make the most of our connectivity between countries and segments.

In the quarter, Euromoney named us the Best International Private Bank in Latin America for the second year in a row and the Best International Private Bank in eight of our countries.

•In SAM, we operate as a global asset manager leveraging our scale, global investment capabilities and product distribution hubs. In terms of retail distribution, we are implementing a new advisory model, supported by a global platform offering enhanced customer experience.

In terms of our Alternatives and Institutional businesses, our focus is on continuing to complete our value proposition while improving our scale. During the first quarter, we launched an additional vehicle in renewable investments in Europe (Santander Renovables) bringing our total to 23 vehicles in four different investment strategies: Private Debt, Infrastructure & Energy, Real Estate and Funds of Funds.

We received several awards during the period, such as the Best Fund Manager for Voluntary Pension Savings (APV in Spanish) in Chile on top of the 27 awards we received during 2023.

•In Insurance, we are optimizing our businesses to deliver more value to our customers and simplify our operations. In addition to our traditional focus on life and home businesses, we are shifting our mix towards higher growth verticals such as savings, health and SMEs, having reinforced our health insurance offer in Chile and Portugal during the quarter.

Additionally, we are focused on improving customer growth and loyalty by streamlining our processes and bolstering our sales force to provide more personalized advisory. We are also exploring opportunities in the open market and developing new global platforms such as Autocompara, our auto comparison engine with presence in five countries and 1.4 million active policies.

Wealth. Awards in the quarter

January - March 2024						33

---

Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Primary segments

Business performance

Total assets under management (AuMs) reached an all-time high of EUR 482 billion, 14% more than Q1 2023 (in constant euros), driven by last year's record commercial activity and positive market performance. In terms of Insurance, gross written premiums reached EUR 3.0 billion with the year-on-year change impacted by savings business. By business and in constant euros:

•In Private Banking, we had customer assets and liabilities of EUR 317 billion for the first time (+15% year-on-year), with all product categories growing. This is the result of positive commercial activity with net new money totalling EUR 5.5 billion in the period with significant year-on-year growth.

We remain close to our clients, as we offer them benefits of our scale and international presence, managing network business volumes (cross-border business between markets) of EUR 57 billion (+11% year-on-year). All this resulted in our client base growing 13% year-on-year to 277,000.

•In SAM, total assets under management reached EUR 226 billion, +15% year-on-year, on the back of record commercial activity in 2023 and a favourable market performance, a trend that continued in Q1 2024. There was significant growth in net sales, reaching EUR 3.8 billion, driven by the adjustment of our value proposition to current market conditions.

As a result of this remarkable activity, we are achieving market share growth in most of our countries, notably in Spain, where we are one of the market leaders and Brazil and Mexico, where we managed to reverse the negative dynamics in the first part of 2023.

•In Insurance, gross written premiums amounted to EUR 3.0 billion, -4% year-on-year due to extraordinary savings inflows in 2023. Good performance in non-related business growing 8% year-on-year.

Wealth. Business performance

EUR billion and % change in constant euros

Total AuMs
Funds and investment*
- SAM
- Private Banking
Custody
Customer deposits
Customer loans
GWP

/ Dec-23			/ Mar-23
+5		%	+14		%
+4		%	+12		%
+4		%	+15		%
+6		%	+11		%
+7		%	+28		%
+2		%	+2		%
+1		%	+4		%
-24		%	-4		%

Note: total products marketed, advised, under custody and/or managed.

* Excluding overlaps between PB and SAM of EUR 38 billion between PB clients' investment funds managed by SAM.

Results

Attributable profit in Q1 2024 amounted to EUR 400 million, 27% higher year-on-year. In constant euros, it grew 25%, with the following results by line:

•Total income reached EUR 892 million, 17% higher year-on-year supported by interest income management and solid net fee income.

Net interest income increased 26% on the back of solid margin management of interest margins and commercial activity in PB.

Net fee income rose 17% year-on-year to EUR 364 million, with consistent growth in both PB and SAM.

Wealth's total fee contribution to the Group (including those ceded to commercial network) rose 13% year-on-year to EUR 1,012 million and accounted for 31% of the Group's total fees with strong fee growth across businesses, driven by more recurrent activity in PB, higher volumes in SAM and the good performance of protection business in Insurance.

Total income including gross fees ceded to the branch network amounted to EUR 1,539 million, 14% higher year-on-year with a solid performance across the three businesses.

Wealth. Total income. March 2024.

EUR million and % change in constant euros

PB
SAM
Insurance

Total income			Revenue + ceded fees
+18%			+18%
+24%			+15%
+2%			+9%

			Total income						Fees ceded to the commercial network

Note: information at Wealth level excludes overlaps between businesses.

•Costs increased 5% year-on-year, impacted by inflation, investments in key initiatives such as reinforcing PB teams to respond to higher commercial activity.

•Wealth's total contribution to Group profit (profit plus fees ceded to the commercial network) reached EUR 838 million, up 18% year-on-year (+16% in constant euros), driven by good performance across the three businesses.

RoTE in Q1 2024 was 77.3% (80.4% annualizing the impact of the temporary levy on revenue earned in Spain).

Compared to Q4 2023, attributable profit increased 12% in constant euros boosted by total income performance in PB and SAM.

Wealth. Underlying income statement

EUR million and % change

/

Q4'23

/

Q1'23

Q1'24

%

excl. FX

%

excl. FX

Total income

892

+14

+14

+18

+17

Expenses

-306

-9

-9

+5

+5

Net operating income

585

+30

+30

+25

+24

LLPs

-4

—

—

—

—

PBT

557

+18

+18

+26

+24

Attributable profit

400

+12

+12

+27

+25

Detailed financial information in appendix

34						January - March 2024

---

Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Primary segments

						Payments			Underlying attributable profit
									EUR 137 mn
→ PagoNxt and Cards bring a unique position in the payments industry to the Group, covering both sides of the value chain (issuing and acquiring businesses). → Activity increased in both businesses supported by global platform development, enabling further scale gains. In PagoNxt, Getnet's TPV rose 14% year-on-year in constant euros and the number of transactions improved 13%. In Cards, turnover increased 6% year-on-year in constant euros and transactions rose 8%. → Attributable profit was EUR 137 million, increasing 29% year-on-year (+22% in constant euros) mainly driven by lower LLPs. In PagoNxt, EBITDA margin improved 9.5pp to 17.0%.

PagoNxt and Cards strategy

PagoNxt brings together the Group's main payment businesses and has the objective to offer to all its customers integrated, innovative and high value-added solutions that enable corporates and businesses to improve their competitiveness through excellent management of both their national and international payments. PagoNxt is structured around three businesses: Getnet, one of the largest global merchant acquiring platforms, Ebury, a specialist international B2B payments business for SMEs and PagoNxt Payments, which integrates OneTrade and Payments Hub global platforms and focuses on account-to-account (A2A) payment processing.

In the first quarter, we made progress in our key strategic priorities:

•In Getnet, we continued to develop our global platform, launch new functionalities and prepare Getnet's expansion to other markets, such as the UK.

•Ebury, continued to make progress in its international expansion strategy, launching new operations in Brazil, developing new business verticals, such as mass payments, and evolving its online capabilities to better serve its customers.

•PagoNxt Payments, integrated Lynx Tech, an independent software company based on artificial intelligence to detect and prevent financial crime.

Cards includes the cards businesses across our footprint and our card platform. In the quarter, we made progress in the priorities set for the year:

•Expanding the business: we made progress in implementing Card Risk Data Lab, our global solution based on innovative modelling techniques that enables us to evolve and scale new data models, with positive results with pre-approved customers increasing 5% year-on-year and improving customer default predictability. We are also strengthening the connection between card issuing and acquiring platforms to offer value-added products and services, and in the second quarter we will launch the first differential joint value proposition (card + PoS) in Chile and Spain.

•Improving customer satisfaction and offering the best card payment experience in a simple way at any time, which we call Invisible Payments. For physical payments we launched Google Pay in Mexico and Apple Pay in Argentina during the quarter, while in e-commerce payments we continued to work on the implementation of Click to Pay (a simple payment solution). We continued to roll out new digital services on a global scale, such as the token manager, which is now available to more than 40 million customers across the Group.

•Implement Plard, our new global card platform, where we already have more than 45,000 debit cards under management

in Brazil. Additionally, we are simplifying the card product portfolio, and we already achieved a 77% reduction year-on-year.

Business performance

Loans and advances to customers increased 9% year-on-year. Excluding reverse repurchase agreements and in constant euros, gross loans rose 7%, driven by growth in both PagoNxt and Cards.

Payments has very small deposit volume concentrated in the PagoNxt business. These deposits, which amounted to EUR 790 million, rose 31% year-on-year in euros and in constant euros.

Results

Attributable profit was EUR 137 million in the Q1 2024, 29% higher year-on-year. In constant euros, profit increased 22%, by line:

•Total income was flat. Excluding a one-time positive fee recorded in Q1 2023 from commercial agreements in Brazil, total income increased 7%, driven by activity improvement.

•Costs rose 8%, reflecting our platform investment in both businesses.

•Net loan-loss provisions, which mainly relate to the Cards business, decreased 14%, supported by both Cards and PagoNxt.

Compared to Q4 2023, attributable profit decreased after a strong fourth quarter of 2023 and higher costs this quarter.

Payments. Underlying income statement

EUR million and % change

/

Q4'23

/

Q1'23

Q1'24

%

excl. FX

%

excl. FX

Total income

1,353

+3

+3

+3

0

Expenses

-650

+18

+18

+10

+8

Net operating income

703

-7

-7

-3

-7

LLPs

-418

+15

+14

-11

-14

PBT

265

-28

-27

+10

+6

Attributable profit

137

-33

-32

+29

+22

Detailed financial information in appendix

January - March 2024						35

---

Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Primary segments

PagoNxt

Business performance

Getnet, our merchant acquiring business with presence in Latin America and Europe, continued to consolidate its franchise and market position. Payments and Ebury businesses continued to execute their growth and development plans.

In Q1 2024, total number of transactions in Getnet reached EUR 2.4 billion, 13% higher year-on-year, and total payment volumes (TPV) was EUR 53.7 billion, 14% more than in Q1 2023 in constant euros.

PagoNxt. Activity
TPV (Getnet)
EUR billion and changes in constant euros

+14%

Results

In the Q1 2024, attributable loss of EUR 39 million, compared to a EUR 55 million loss in Q1 2023, a 29% improvement. In constant euros, profit improved 26%, by line:

•Total income reached EUR 283 million, up 13% year-on-year.

•Costs rose 8% year-on-year, reflecting the inflationary pressures and investments in developing global platforms.

EBITDA margin was 17.0% (+9.5 pp higher than in Q1 2023).

In the quarterly comparison, attributable loss compared to a profit in Q4 2023 due to seasonality in the last quarter of the year. Costs rose relating to the implementation of strategic initiatives and perimeter changes.

			PagoNxt. Underlying income statement
			EUR million and % change
									/			Q4'23									/			Q1'23
						Q1'24			%			excl. FX									%			excl. FX
			Total income			283			-12			-11									+16			+13
			Expenses			-304			+14			+14									+10			+8
			Net operating income			-21			—			—									-38			-32
			LLPs			-4			+199			+208									-39			-39
			PBT			-27			—			—									-35			-31
			Attributable profit			-39			—			—									-29			-26
			Detailed financial information in appendix

Cards

Business performance

Card turnover increased 6% in constant euros, driven by 9% growth in credit cards and a 4% rise in debit cards.

The number of transactions rose 8% and the payment acceptance rate continued to steadily increase. We also continue to improve customer experience.

Cards. Activity
Turnover
EUR billion and changes in constant euros

+6%

Results

Attributable profit in the Q1 2024 amounted to EUR 177 million, a 9% rise. In constant euros, profit rose 7%, by line:

•Total income was EUR 1,070 million, decreasing 3% year-on-year affected by a one-time positive fee in Q1 2023 in Brazil. Excluding this effect, revenue would have risen 5%, reflecting the good activity performance.

•Costs rose 8% year-on-year, reflecting the inflationary pressures and ongoing investment plans to develop and implement our global platform, Plard.

•Net loan-loss provisions fell 14%, with a declining NPL ratio, due to lower interest rates in Latin America, benefitting customer payment capacity.

In Q1 2024, RoTE in Cards was 35.5%.

Compared to Q4 2023, attributable profit decreased 1% in constant euros, as total income growth was offset by higher costs and provisions.

Cards. Underlying income statement

EUR million and % change

/

Q4'23

/

Q1'23

Q1'24

%

excl. FX

%

excl. FX

Total income

1,070

+8

+8

0

-3

Expenses

-346

+23

+22

+11

+8

Net operating income

724

+3

+3

-5

-8

LLPs

-414

+15

+13

-11

-14

PBT

292

-13

-12

+3

+1

Attributable profit

177

-2

-1

+9

+7

Detailed financial information in appendix

36						January - March 2024

---

Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Primary segments

			Corporate Centre			Underlying attributable profit
						-EUR 357 mn
→ The Corporate Centre continued to support the Group. → The Corporate Centre’s objective is to define, develop and coordinate the Group's strategy and aid the operating units by contributing value and carrying out the corporate oversight and control function. It also carries out functions related to financial and capital management. → Attributable loss of EUR 357 million, a 28% greater loss compared to Q1 2023 mainly due to lower gains of financial transactions (higher negative impact from foreign currency hedging).

Strategy and functions

The Corporate Centre contributes value to the Group, through the following functions, among others:

•Through global control frameworks and supervision.

•Fostering the exchange of best practices in cost management, which enables us to be one of the most efficient banks.

•Collaborating in the definition and execution of the global strategy, competitive development operations and projects that ensure we meet the business plan.

•Contributing to the launch of projects that will be developed by our global businesses aimed at leveraging our worldwide presence to generate economies of scale.

•Ensuring open and constructive communication with shareholders, analysts, investors, bondholders, rating agencies and other market players.

•Adding value to our businesses, countries and divisions by encouraging the exchange of best practices, driving and managing innovative global initiatives and defining corporate policies to improve efficiency in our processes and service quality for our customers.

It also coordinates the relationship with European regulators and supervisors and develops functions related to financial and capital management, as follows:

•Financial Management functions:

–Structural management of liquidity risk associated with funding the Group’s recurring activity and stakes of a financial nature. At the end of March 2024, the liquidity buffer was EUR 330 billion.

This activity is carried out by the diversification of funding sources (issuances and other), maintaining an adequate profile in volumes, maturities and costs.

The price of these transactions with other Group units is the market rate that includes all liquidity concepts (which the Group supports by immobilizing funds during the term of the transaction) and regulatory requirements (TLAC/MREL).

–Interest rate risk is also actively managed in order to dampen the impact of interest rate changes on net interest income, conducted via high credit quality, very liquid and low capital consumption derivatives.

–Strategic management of exposure to exchange rates in equity and dynamic management of the FX hedges related to the units’ next twelve months results in euros. The net investments in equity currently hedged totalled EUR 19,641 million (mainly in the UK, Mexico, Poland and Chile) with different FX instruments (spot or forwards).

•Management of total capital and reserves: capital analysis, adequacy and management of the Group including: coordination with subsidiaries, monitoring returns to maximize shareholder returns, setting solvency targets and capital contributions, and monitoring the capital ratio in both regulatory and economic terms, and efficient capital allocation to the units.

Results

In Q1 2024, the attributable loss was EUR 357 million, 28% higher than in Q1 2023 (a EUR 279 million loss), by line:

•Net interest income improved by EUR 21 million, due to positive sensitivity to interest rate rises.

•Lower gains on financial transactions (EUR 108 million worse), due to higher negative impacts from FX hedging.

•On the other hand, operating expenses improved 8% compared to the same period in 2023, driven by ongoing simplification measures.

•Lastly, other results and provisions improved slightly year-on-year.

Corporate Centre. Underlying income statement

EUR million and % change

Q1'24

Q4'23

Chg.

Q1'23

Chg.

Total income

-210

+212

—

-124

+69%

Net operating income

-297

+104

—

-219

+36%

PBT

-340

+73

—

-260

+31%

Attributable profit

-357

+87

—

-279

+28%

Detailed financial information in appendix

January - March 2024						37

---

Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Secondary segments

			Europe			Underlying attributable profit
						EUR 1,541 mn
→ We continue to accelerate our business transformation to achieve higher growth and a more efficient operating model. → New business lending volumes are recovering, however the stock of loans declined year-on-year, still affected by prepayments in a context of higher interest rates. Customer deposits rose, with strong increase in time deposits. → Attributable profit (EUR 1,541 million) up 30% (+27% in constant euros) with strong revenue growth, mainly from net interest income in Spain, Portugal and Poland, with costs growing in line with inflation and lower provisions.

Strategy

In 2024, we remain focused on growing our business and transforming our operating model, to improve efficiency and customer experience.

•In Retail, we continue to drive digitalization through a common online banking and mobile experience, while reducing running costs and streamlining products and processes.

•In CIB, we are focused on deepening customer relationships and boosting our distribution capabilities.

•Wealth is a key driver of fee generation. We continue boosting our business while increasing efficiency by developing centralized global technology platforms.

•In Payments, we continue expanding our businesses across Europe through PagoNxt and Cards.

Additionally, our capital discipline allows us to maximize the value of the businesses, focusing on sustainable asset rotation and on high-value origination.

Business performance

Positive business dynamics with new business volumes improving year-on-year, supported by customer growth across the region (up nearly 700 thousand customers).

Loans and advances to customers remained flat year-on-year. In gross terms, excluding reverse repurchase agreements and in constant euros, they decreased 4%, with falls across most countries, except Poland due to record mortgage and personal loans originations and CIB portfolio growth. By business, they decreased in Retail (due to mortgage prepayments in the UK and Spain), and also in CIB in Spain.

Europe. Business performance. March 2024

EUR billion and YoY % change in constant euros

Europe

553

-4%

Europe

725

+3%

Gross loans and advances to customers excl. reverse repos

Customer deposits excl. repos + mutual funds

Customer deposits increased 4% year-on-year. Excluding repurchase agreements and in constant euros, they grew 1%, driven by time deposits (+31%), while demand deposits fell 5%. By business, deposits rose mainly due to time deposits in Retail, CIB and Wealth. Mutual funds rose 17% in constant euros, with increases in all countries.

Results

Attributable profit in Q1 2024 was EUR 1,541 million, up 30% year-on-year. In constant euros, it grew 27% (+30% excluding temporary levy on revenue earned in Spain), as follows:

•Total income grew 10%, due to higher net interest income (+12), with strong growth in Spain, Portugal and Poland, supported by good margin management. In the UK, net interest income was impacted by higher deposit costs and lower mortgage volumes. Net fee income rose 2%, driven by FX and mutual fund fees in Poland and higher fees in Portugal.

•Costs increased 5%, in line with inflation, especially in the UK (impact of inflation on salaries) and Poland (tight labour market). Net operating income increased 14% and efficiency ratio improved by 223 bps, reaching 39.7%.

•Net loan-loss provisions decreased 26%, driven by lower activity in Spain and Portugal, macro improvement in the UK and lower provisions in Poland. The cost of risk remained flat year-on-year at 0.41%.

Compared to Q4 2023, profit rose 17% in constant euros, driven by the strong growth in gains on financial transactions (mainly in CIB in Spain), higher net fee income, cost reduction and lower CHF provisions in Poland.

Europe. Underlying income statement

EUR million and % change

/

Q4'23

/

Q1'23

Q1'24

%

excl. FX

%

excl. FX

Total income

5,809

+11

+11

+12

+10

Expenses

-2,305

-2

-3

+6

+5

Net operating income

3,504

+23

+22

+17

+14

LLPs

-484

-17

-18

-25

-26

PBT

2,438

+31

+31

+32

+29

Attributable profit

1,541

+18

+17

+30

+27

Detailed financial information in appendix

38						January - March 2024

---

Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Secondary segments

DCBE			Digital Consumer Bank Europe			Underlying attributable profit
						EUR 229 mn
→ Our strategy is focused on strengthening our leadership in auto and non-auto through strategic alliances and better service through new operational and non-auto leasing platforms, with Zinia in BNPL. → New business volumes fell 1% year-on-year in constant euros (flat in auto), in an environment that still tends to limit consumption (though starting to show signs of recovery), and in line with our strategy to prioritize profitability over volumes. Deposits rose 21%, also in line with our objective to increase retail funding to reduce liability costs. → Attributable profit of EUR 229 million, down 6% year-on-year (-1% in constant euros excluding the temporary levy on revenue earned in Spain) due to the impact of rising rates on net interest income and cost of risk normalization to pre-pandemic levels.

Strategy

The vision in our DCB Europe business is to become the preferred partner of our final customers and partners, offering greater profitability and value creation.

We are thus transforming our operating model:

•We continue to offer global solutions integrated into the processes of our partners - manufacturers, importers, and retailers - accompanying them as their increasingly digital business models evolve.

•Simplifying and automating our processes to improve customer experience and gain in scalability.

•Building and developing global platforms. We have our already implemented operational leasing solution, Zinia, our buy now, pay later business in Germany with 1 million users, and Openbank in four markets (Spain, Netherlands, Portugal and Germany).

Business performance

The stock of loans and advances to customers rose 6%. In gross terms, excluding reverse repos and in constant euros, it reached EUR 135 billion, 6% higher year-on-year.

Our access to wholesale funding markets remained strong and diversified. In line with our strategy to increase retail funding to reduce funding costs, customer deposits increased 21% year-on-year. Excluding repos and in constant euros, they also grew 21% up to EUR 73 billion. Mutual funds increased double-digits from very low levels.

DCB Europe. Marzo 2024

EUR billion and % change in constant euros

0%

QoQ

+6%

QoQ

135

+6%

77

+21%

YoY

YoY

Gross loans and advances to customers excl. reverse repos

Customer deposits excl. repos + mutual funds

Results

In Q1 2024, attributable profit reached EUR 229 million, a 6% decline year-on-year. In constant euros, profit also decreased 6% (-1% excluding the impact of the temporary levy on revenue earned in Spain), as follows:

•Total income improved 5%, mainly due to net interest income (+6%), supported by active loan repricing and customer deposit growth. In addition, net fee income grew 15%, driven by greater penetration in direct insurance in France and Germany.

•Costs remained almost flat absorbing the effects of inflation and business growth. All considered, net operating income grew 9% and the efficiency ratio stood at 47.1%.

•Net loan-loss provisions increased 43%, due to cost of risk normalization in line with expectations (still below our historical average), volumes growth, some regulatory impacts and lower portfolio sales than in 2023. Cost of risk remained at very low levels (0.67%), normalizing in line with expectations and the NPL ratio reached 2.27%.

By country, profit of EUR 58 million in Germany, EUR 52 million in Nordics, EUR 29 million in France and EUR 28 million in the UK.

Compared to Q4 2023, profit fell 39% in constant euros affected by seasonality, lower gains on financial transactions (from high levels in 2023), the impact on provisions from higher portfolio sales in Q4 2023, and the impact of the temporary levy on revenue earned in Spain.

			DCB Europe. Underlying income statement
			EUR million and % change
									/			Q4'23									/			Q1'23
						Q1'24			%			excl. FX									%			excl. FX
			Total income			1,410			-2			-2									+5			+5
			Expenses			-665			+2			+2									+1			+1
			Net operating income			745			-5			-5									+9			+9
			LLPs			-276			+81			+80									+43			+43
			PBT			401			-31			-31									-10			-11
			Attributable profit			229			-39			-39									-6			-6
			Detailed financial information in appendix

January - March 2024						39

---

Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Secondary segments

			North America			Underlying attributable profit
						EUR 644 mn
→ We continue to leverage the strength of our global businesses to transform our presence in the US and Mexico while refining our tailored service and product suite for a better customer experience. → Loans and advances to customers increased 3% year-on-year in constant euros driven by growth in Mexico. Customer funds rose 2% in constant euros, due to higher time deposits in both countries and mutual funds in Mexico. → Attributable profit in Q1 2024 was EUR 644 million, up 3% year-on-year (-2% in constant euros), with top line growth in both Mexico and the US, higher costs (inflation and investments) and cost of risk normalization.

Strategy

We continued to pursue business transformation across the US and Mexico leveraging our global and regional scale. We:

•Remained focused on executing the transformation of our Retail and Consumer businesses in both countries. The simplification of our product portfolio and streamlining our operations continue, as well as the adoption of global technology platforms to deliver an enhanced digital experience.

•Continued to invest in our Corporate & Investment Banking build-out in the US, with the expansion of our advisory services and enhanced product offering capabilities.

•Pursued growth in Wealth, with targeted investments to further complete our global businesses' capabilities and strengthen growth levers.

•Strengthened our regional operating model in technology and operations to consolidate know-how, digitalization, digital hubs, front and back-office automation driving more effective and efficient operations.

Business performance

Loans and advances to customers were flat year-on-year. In gross terms, excluding reverse repos and in constant euros, they rose 3% mainly due to Retail, Payments and Consumer (Auto) businesses in Mexico and to CIB in the US.

Customer deposits grew 1% year-on-year. Excluding repos and in constant euros, they also rose 1% driven by Retail time deposits in Mexico (as a result of strong customer acquisition) and by Consumer time deposits in the US, offsetting lower demand deposits in Consumer US.

Mutual funds rose 5% year-on-year in constant euros, as the strong performance in Mexico more than compensated a decrease in the US.

North America. Business performance. March 2024

EUR billion and YoY % change in constant euros

North America

167

+3%

North America

176

+2%

Gross loans and advances to customers excl. reverse repos

Customer deposits excl. repos + mutual funds

Results

Attributable profit in Q1 2024 was EUR 644 million, up 3% year-on-year. In constant euros, profit decreased 2%, as follows:

•Total income rose 8%, driven by net interest income increase in Mexico supported by volumes growth in Retail and Payments, and a very strong revenue performance in CIB in the region, particularly in the US, as a result of the first advances in our business franchise transformation.

•Costs increased 8%, impacted by inflation and investments in IT, digitalization and transformation initiatives in Retail in Mexico and in CIB in the US, partly offset by ongoing costs savings and efficiencies captured in our Retail and Consumer businesses in the US.

•Net loan-loss provisions grew 20% year-on-year, mainly reflecting the strong business growth in Retail portfolios in Mexico and the expected cost of risk normalization.

Compared to Q4 2023, attributable profit grew 39% in constant euros, boosted by double-digit growth in net operating income (higher revenue in CIB and Wealth in the US and lower costs in both countries) and lower provisions due to some seasonality in Auto in the US.

North America. Underlying income statement

EUR million and % change

/

Q4'23

/

Q1'23

Q1'24

%

excl. FX

%

excl. FX

Total income

3,485

+4

+3

+11

+8

Expenses

-1,661

-6

-6

+11

+8

Net operating income

1,824

+13

+13

+11

+8

LLPs

-985

-13

-13

+22

+20

PBT

776

+66

+62

-5

-9

Attributable profit

644

+42

+39

+3

-2

Detailed financial information in appendix

40						January - March 2024

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Index

Secondary segments

			South America			Underlying attributable profit
						EUR 796 mn
→ We are focused on being the primary bank for our customers and the most profitable in each of our countries in the region, taking advantage of the synergies between our global and regional businesses. We maintained a solid customer base (75 million), supported by our focus on service quality. → In terms of activity, year-on-year growth in both loans and deposits in constant euros, while seeking to become the leading bank in inclusive and sustainable businesses through differential value proposals. → Attributable profit was EUR 796 million in Q1 2024, with a 1% increase year-on-year (+1% also in constant euros) driven by net interest income growth which offset higher costs and provisions.

Strategy

In first quarter, the main initiatives by business were:

•In Retail, we are implementing corporate solutions that allow us to accelerate the change of our model towards a digital bank with branches.

•In Consumer, we continued to invest in the franchise, developing new businesses and strengthening OEM alliances.

•In CIB, we are evolving towards a pan-regional offering, expanding our capabilities in markets and corporate finance.

•In Wealth, we are working to increase liability gathering, to drive loyalty and growth of higher value customers.

•Finally, in Payments, we continued to drive PagoNxt and Cards growth, through the development of new businesses and customer experience improvement.

Business performance

In volumes and results, the variations in constant euros have been calculated considering the ARS exchange rate on the last working day for each of the periods presented. For further information, see the section 'Alternative performance measures' in the appendix to this report.

Loans and advances to customers increased 1% year-on-year. In gross terms, excluding reverse repos and in constant euros, they rose 5% driven by growth in Brazil, Chile and Uruguay.

By business, they rose in Retail (higher volumes across products in Brazil and Uruguay and mortgages in Chile), in Consumer and Wealth (overall positive performance) and Payments, driven by Brazil and Chile. In CIB, loans decreased due to a decline in Brazil, in a more competitive environment.

South America. Business performance. March 2024

EUR billion and YoY % change in constant euros

South America

161

+5%

South America

204

+9%

Gross loans and advances to customers excl. reverse repos

Customer deposits excl. repos + mutual funds

Customer deposits increased 5% year-on-year. Excluding repos and in constant euros, they grew 6%, driven by time deposits (+12%), while demand deposits fell 5%. By business, deposits rose mainly due to time deposits in Retail, CIB and Wealth.

Mutual funds rose 14% in constant euros, with increases in most countries.

Results

In Q1 2024 attributable profit reached EUR 796 million, 1% higher than in the Q1 2023. In constant euros, profit also rose 1%, as follows:

•Total income increased 10%, supported by 31% net interest income growth, up double-digits in all countries, driven by business growth and lower interest rates in Brazil and Chile. Net fee income performance (+1%) was impacted by last year's high levels in Brazil and Chile and lower fees in Argentina.

•Costs increased 6%, especially in Argentina. Net operating income increased 13% and efficiency improved by 170 bps to 37.4%.

•Net loan-loss provisions were up 10%, due to credit portfolio growth in Brazil and Chile. The cost of risk stood at 3.44% (3.39% in March 2023).

Compared to Q4 2023, profit increased 15%, supported by the good revenue performance in Q1 2024 and since Q4 2023 profit was affected by higher provisions in Brazil (from single names in the CIB portfolio) and the ARS devaluation impact in Argentina.

South America. Underlying income statement

EUR million and % change

/

Q4'23

/

Q1'23

Q1'24

%

excl. FX

%

excl. FX

Total income

4,887

+13

+15

+11

+10

Expenses

-1,829

+15

+17

+6

+6

Net operating income

3,058

+12

+13

+14

+13

LLPs

-1,378

-12

-11

+12

+10

PBT

1,308

+39

+43

+5

+6

Attributable profit

796

+12

+15

+1

+1

Detailed financial information in appendix

January - March 2024						41

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Responsible Banking

STRATEGY AND TARGET

Our sustainability strategy focuses on supporting business growth, meeting our stakeholders' expectations and making Santander more resilient through sound risk management, data protection and privacy, transparency, culture and governance. This strategy focuses on areas with the greatest risks or opportunities for the Group or where we can have the greatest impact.

We continued to make progress towards meeting the goals set at Investor Day, which include supporting the transition to a green economy and promoting inclusive growth.

Green finance

Socially Responsible Investments (SRI) AuMs

Financial inclusion

EUR 118.5 billion

EUR 72.8 billion

2.3 million people

Target 1: EUR 120 bn 2025

Target: EUR 100 bn 2025

Target: 5 mn 2025

Target 2: EUR 220 bn 2030

Note: not audited and not taxonomy.

GROUP

•In 2023, we maintained our position in MSCI (AA) and remained in the DJSI World and European Index for Banks. In CDP, we maintained our position at Leadership level, however decreased from A to A-. We improved our position in the Sustainalytics (scoring 19.7 points and moving to the low risk category), Moody's (65 points) and FTSE4Good (4.7 points) indices. Santander México was included as a member of S&P Global's Sustainability Yearbook 2024 and CDP upgraded Santander Brasil's rating from B to A-.

•In February, we published the 2023 Annual Report in which the Responsible Banking chapter responds to the Non-Financial Information Statement (EINF in Spanish), and we incorporated elements of the European Corporate Sustainability Reporting Directive (CSRD), as a first step in adapting to the reporting requirements that will come into force for the next annual report.

•On 22 March 2024, the annual general meeting approved the long-term incentive scheme (2024-2026), which includes ESG metrics accounting for 20% of the total.

•Our Climate Finance Report 2023 follows the framework established by the Taskforce on Climate-related Financial Disclosures (TCFD), which shows progress on our transition plan and the integration of climate-related risks and opportunities.

GLOBAL BUSINESSES

RETAIL

•Since 2023, we have financially included 2.3 million people, of which more than 1.2 million were through access initiatives and around 1.1 million through finance initiatives. We support microentrepreneurs through our Prospera, Tuiio and Surgir propositions, present in four countries, through which we lent EUR 303.6 million in Q1 2024.

•As part of our objective to invest EUR 400 million between 2023 and 2026 to foster education, employability and entrepreneurship, we have reached EUR 120.9 million, of which EUR 15.9 million was in Q1 2024. In addition, in Q1 2024 we invested EUR 7 million in investment to communities.

42						January - March 2024

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CONSUMER

•In Q1 2024 in Europe, we financed more than 54,000 new electric vehicles (EV) for a total of EUR 1.6 billion, equivalent to a market share in EV sales in Europe of more than 10%. Our offering includes a wide range of green solutions including the financing of electric vehicles, electric chargers, solar panels and electric bicycles.

•We published our decarbonization target in the European auto lending portfolio for 2030. Together with those set in CIB's global business, we have a total of seven targets in five high-emission sectors.

CIB

•As at 31 March 2024, we had mobilized EUR 118.5 billion in green finance since we set our target in 2019, EUR 3.2 billion in Q1 2024. This brings us very close to our target of EUR 120 billion in the period 2019-2025.

•For the corporate and investment banking portfolio, we set an additional decarbonization target for 2030 in the auto manufacturing sector. We now have six targets in five high emitting sectors: power generation, energy (oil and gas), aviation, steel, auto manufacturing and thermal coal.

WEALTH

•We continued to increase our socially responsible investment (SRI) product offering, advancing towards our target of reaching EUR 100 billion in SRI AuMs in 2025. In Q1 2024, the total volume of AuMs in socially responsible investments was EUR 72.8 billion, of which EUR 51.2 billion were in SAM and EUR 21.6 billion from third party funds in Private Banking.

•Our voting activity in SAM earned us a special mention from ShareAction in their latest voting report 'Voting matters'.

PAYMENTS

•In Cards in 2023, we acquired 37 million cards (72% of the total in the year) made of sustainable materials (recycled PVC or PLA).

January - March 2024						43

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Corporate governance

→			Clear and robust corporate governance to ensure a long-term sustainable business model
→			High shareholder participation and active involvement at the general meeting
									2024 ordinary general shareholders’ meeting.

2024 Ordinary general shareholders’ meeting

Banco Santander held its 2024 ordinary general shareholders’ meeting on second call on 22 March at Centro de Formación El Solaruco (Ciudad Grupo Santander), in Boadilla del Monte. Shareholders were able to attend in person and by telematic means.

617,739 shareholders, owning 66.65% of the share capital, attended the general meeting on their own behalf or by proxy.

The proposed resolutions submitted by the board passed with an average of 97.16% votes in favour. 99.36% of voting shareholders approved the Bank’s management for the 2023 financial year.

Detailed information on the resolutions that passed at the general meeting can be found published on our corporate website (www.santander.com).

Changes to the board of directors

At the ordinary general meeting, shareholders approved the appointment of Carlos Barrabés as independent director, subject to regulatory approval, to fill the vacancy left by Bruce Carnegie-Brown.

They also approved the appointment of Antonio Weiss as independent director to fill the vacancy left by Ramiro Mato, who will step down from the board of directors on the date of obtaining the regulatory approval for Antonio Weiss’s appointment.

Changes to the board committees

These changes to the composition of its committees took place on 23 March:

•Audit committee: Germán de la Fuente was appointed Chair to replace Pamela Walkden, who will remain as a member of the committee.

•Nomination committee: Belén Romana was appointed Chair to replace Bruce Carnegie-Brown, who stepped down as a member of the committee.

•Remuneration committee: Bruce Carnegie-Brown stepped down as a member of the committee.

•Risk supervision, regulation and compliance committee: Pamela Walkden was appointed Chair to replace Belén Romana, who will remain as a member of the committee.

•Responsible banking, sustainability and culture committee: Pamela Walkden joined the committee and Belén Romana stepped down as a member.

•Innovation and technology committee: Glenn Hutchins was appointed Chair to replace Ana Botín, who will remain as a member of the committee.

The updated composition of the board committees is available on our corporate website (www.santander.com).

Changes to the organizational structure of the Group's Senior Management

On 1 March, the appointment of David Hazell as Group Chief Compliance Officer to succeed Marjolein van Hellemondt was announced. His appointment is subject to regulatory approval. In 2012, Mr Hazell joined the Group as Chief Compliance Officer of Santander UK and has been the Chief Compliance Officer of Santander US since 2018.

On 21 March, the board of directors appointed Julia Bayón as the new Group Chief Audit Executive and Head of the Internal Audit division to succeed Juan Guitard, who was appointed vice president of PagoNxt, S.L. Her appointment is subject to regulatory approval. Ms Bayón led the Group’s Business and Corporate & Investment Banking Legal Service and was deputy secretary of the board of directors of Banco Santander. She has been a director of Santander Perú since 2021.

44						January - March 2024

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Santander Share

In application of the shareholder remuneration policy for 2023, on 19 February 2024 the board approved the implementation of a second share buyback programme for a maximum amount of EUR 1,459 million, having already been authorized by regulators. The programme commenced on 20 February 2024 and is currently underway.

On 22 March 2024, the annual general meeting approved the payment of a final cash dividend against 2023 results of EUR 9.50 cents gross per share entitled to receive the dividend, payable from 2 May 2024.

After completing both actions, total shareholder remuneration against 2023 results is expected to total EUR 5,538 million (approximately 50% of the Group's 2023 reported profit excluding non-cash, non-capital ratios impact items) distributed approximately as 50% in cash dividend and 50% in share buybacks.

For 2024 results, the board of directors plans to continue with the same remuneration policy, which is a payout of approximately 50% of the Group's reported profit (excluding non-cash, non- capital ratios impact items), distributed approximately equally between cash dividend and buyback programmes. The execution of the shareholder remuneration policy is subject to future corporate and regulatory approvals.

Share price performance

Santander's shares are listed on five markets: on four exchanges in Spain (Madrid, Barcelona, Bilbao and Valencia), in the US (as an ADR), in the UK (as a CDI), in Poland and in Mexico (Sistema Internacional de Cotizaciones).

During the first quarter of the year, expectations for global economic growth improved from a scenario of moderate slowdown to a more optimistic one, with solid performance in regions such as the US and Latin America. Inflation levels continue to gradually fall back towards the central banks' targets.

Regarding potential interest rate cuts, central banks are taking a moderate stance to avoid premature tapering. Markets are pricing in interest rate cuts by the European Central Bank, the Federal Reserve and the Bank of England starting from June/July. In Q1 2024, all three central banks decided to hold interest rates at their meetings (at 4%, 5.25-5.50% and 5.25%, respectively).

In Latin America, the economies of countries such as Brazil, Mexico and Chile accelerated at the beginning of 2024, while a positive tone is beginning to emerge in Argentina in a market that still faces significant challenges ahead with a focus on inflation.

In this environment, equity markets performed well. Santander's share price ended March 2024 with positive return of 19.6% in the quarter, outperforming the market. In the banking sector, the Eurostoxx Banks, the eurozone's main index, was 17.7% up, while the DJ Stoxx Banks rose by 12.6% and the MSCI World Banks in euros increased 10.1%. The other main indices also closed up (the Ibex 35 by 9.6% and the DJ Stoxx 50 by 8.2%).

Share price
START 29/12/2023									END 29/03/2024
€3.780									€4.522
Maximum 28/03/2024									Minimum 30/01/2024
€4.568									€3.563

Comparative share performance

January - March 2024						45

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Market capitalization and trading

As at 29 March 2024, Santander’s market capitalization of EUR 71,555 million was the second largest in the eurozone and 22nd largest in the world among financial institutions.

The share’s weighting in the DJ Stoxx Banks index was 7.2% and 11.7% in the DJ Euro Stoxx Banks. In the domestic market, its weight in the Ibex 35 was 12.6% at end March.

A total of 2,187 million shares were traded in the period for an effective value of EUR 8,492 million and an annualized liquidity ratio of 55%.

The daily trading volume was 34.7 million shares with an effective value of EUR 135 million.

Shareholder base

The total number of Santander shareholders at the end of March 2024 was 3,584,294, of which 3,225,265 were European (72.78% of the capital stock) and 347,821 from the Americas (25.97% of the capital stock).

Excluding the board, which holds 1.23% of the bank’s capital stock, retail shareholders accounted for 39.90% and institutional shareholders accounted for 58.87%.

Share capital distribution by geographic area
March 2024
The Americas			Europe			Other
25.97%			72.78%			1.25%
Source: Banco Santander, S.A. Shareholder register.

			2nd			Bank in the eurozone by market capitalization
			EUR			71,555			million

The Santander share
March 2024
Shares and trading data
Shares (number)			15,825,578,572
Average daily turnover (number of shares)			34,712,614
Share liquidity (%)			55
(Annualized number of shares traded during the period / number of shares)
Stock market indicators
Price / Tangible book value (X)			0.93
Free float (%)			99.30

Share capital distribution by type of shareholder
March 2024

			Institutions
			58.87%
			Board *
			1.23%
			Retail
			39.90%

* Shares owned or represented by directors.

46						January - March 2024

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Appendix

January - March 2024						47

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Group financial information

Financial information

Net fee income. Consolidated
EUR million
			Q1'24			Q4'23			Change (%)						Q1'23			Change (%)
Fees from services			1,821			1,585			14.9						1,844			(1.2)
Wealth management and marketing of customer funds			1,076			985			9.2						924			16.5
Securities and custody			343			265			29.4						275			24.7
Net fee income			3,240			2,835			14.3						3,043			6.5

Underlying operating expenses. Consolidated
EUR million
			Q1'24			Q4'23			Change (%)						Q1'23			Change (%)
Staff costs			3,594			3,646			(1.4)						3,245			10.8
Other general administrative expenses			2,125			2,039			4.2						2,111			0.7
Information technology			645			610			5.7						642			0.5
Communications			104			99			5.1						103			1.0
Advertising			139			146			(4.8)						136			2.2
Buildings and premises			192			156			23.1						177			8.5
Printed and office material			23			26			(11.5)						20			15.0
Taxes (other than tax on profits)			150			128			17.2						149			0.7
Other expenses			872			874			(0.2)						884			(1.4)
Administrative expenses			5,719			5,685			0.6						5,356			6.8
Depreciation and amortization			828			779			6.3						789			4.9
Operating expenses			6,547			6,464			1.3						6,145			6.5

Operating means. Consolidated
			Employees1												Branches
			Mar-24			Mar-23			Change						Mar-24			Mar-23			Change
Europe			67,756			66,667			1,089						3,069			3,133			(64)
Spain			24,573			24,845			(272)						1,864			1,909			(45)
United Kingdom			22,339			21,860			479						444			446			(2)
Portugal			4,912			4,957			(45)						375			377			(2)
Poland			10,851			10,618			233						377			393			(16)
Other			5,081			4,387			694						9			8			1
North America			44,413			45,170			(757)						1,783			1,844			(61)
US			13,026			14,491			(1,465)						413			473			(60)
Mexico			30,065			29,619			446						1,370			1,371			(1)
Other			1,322			1,060			262						—			—			—
South America			80,243			79,749			494						3,213			3,653			(440)
Brazil			57,035			56,701			334						2,492			2,846			(354)
Chile			9,740			10,110			(370)						245			275			(30)
Argentina			8,360			8,301			59						318			382			(64)
Other			5,108			4,637			471						158			150			8
DCB Europe			16,852			16,642			210						340			363			(23)
Corporate Centre			1,877			1,940			(63)
Total Group			211,141			210,168			973						8,405			8,993			(588)

1. Employee data for Spain and Other Europe have been modified slightly to better reflect the allocation of CIB employees.

.

Underlying net loan-loss provisions. Consolidated
EUR million
			Q1'24			Q4'23			Change (%)						Q1'23			Change (%)
Non-performing loans			3,464			3,824			(9.4)						3,223			7.5
Country-risk			—			2			(100.0)						(1)			(100.0)
Recovery of written-off assets			(339)			(405)			(16.3)						(349)			(2.9)
Net loan-loss provisions			3,125			3,421			(8.7)						2,873			8.8

48						January - March 2024

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Group financial information

Loans and advances to customers. Consolidated
EUR million
									Change
			Mar-24			Mar-23			Absolute			%			Dec-23
Commercial bills			50,959			51,420			(461)			(0.9)			55,628
Secured loans			557,047			565,455			(8,408)			(1.5)			554,375
Other term loans			301,931			291,184			10,747			3.7			295,485
Finance leases			38,786			40,441			(1,655)			(4.1)			38,723
Receivable on demand			13,452			11,715			1,737			14.8			12,277
Credit cards receivable			24,082			22,474			1,608			7.2			24,371
Impaired assets			34,147			32,654			1,493			4.6			34,094
Gross loans and advances to customers (excl. reverse repos)			1,020,404			1,015,343			5,061			0.5			1,014,953
Reverse repos			51,973			48,653			3,320			6.8			44,184
Gross loans and advances to customers			1,072,377			1,063,996			8,381			0.8			1,059,137
Loan-loss allowances			22,844			22,608			236			1.0			22,788
Loans and advances to customers			1,049,533			1,041,388			8,145			0.8			1,036,349

Total funds. Consolidated
EUR million
									Change
			Mar-24			Mar-23			Absolute			%			Dec-23
Demand deposits			658,749			680,904			(22,155)			(3.3)			661,262
Time deposits			306,491			246,614			59,877			24.3			307,085
Mutual funds			218,354			190,637			27,717			14.5			208,528
Customer funds			1,183,594			1,118,155			65,439			5.9			1,176,875
Pension funds			15,215			14,240			975			6.8			14,831
Managed portfolios			37,757			33,189			4,568			13.8			36,414
Repos			79,213			71,431			7,782			10.9			78,822
Total funds			1,315,779			1,237,015			78,764			6.4			1,306,942

Eligible capital (phased-in) 1. Consolidated
EUR million
									Change
			Mar-24			Mar-23			Absolute			%			Dec-23
Capital stock and reserves			127,857			122,723			5,134			4.2			121,185
Attributable profit			2,852			2,571			281			10.9			11,076
Dividends			(713)			(643)			(70)			10.9			(2,769)
Other retained earnings			(35,527)			(32,868)			(2,659)			8.1			(34,484)
Minority interests			7,550			7,388			162			2.2			6,899
Goodwill and intangible assets			(16,889)			(17,437)			547			(3.1)			(17,220)
Other deductions			(6,501)			(5,607)			(894)			15.9			(7,946)
Core CET1			78,628			76,127			2,501			3.3			76,741
Preferred shares and other eligible tier 1			9,104			8,949			155			1.7			9,002
Tier 1			87,733			85,077			2,656			3.1			85,742
Generic funds and eligible tier 2 instruments			18,493			13,569			4,924			36.3			16,497
Eligible capital			106,226			98,646			7,580			7.7			102,240
Risk-weighted assets			640,382			620,709			19,674			3.2			623,731
CET1 capital ratio			12.3			12.3			0.0						12.3
Tier 1 capital ratio			13.7			13.7			0.0						13.7
Total capital ratio			16.6			15.9			0.7						16.4

1. The phased-in ratio includes the transitory treatment of IFRS 9, calculated in accordance with article 473 bis of the Capital Requirements Regulation (CRR2) and subsequent modifications introduced by Regulation 2020/873 of the European Union. Total phased-in capital ratios include the transitory treatment according to chapter 4, title 1, part 10 of the CRR2.

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Group financial information

RETAIL & COMMERCIAL BANKING																		Q
EUR million
						/			Q4'23									/			Q1'23
Underlying income statement			Q1'24			%			% excl. FX									%			% excl. FX
Net interest income			7,145			10.9			10.7									20.5			17.3
Net fee income			1,193			17.5			17.5									11.0			9.1
Gains (losses) on financial transactions 1			164			(30.5)			(30.9)									28.1			32.2
Other operating income			(453)			46.8			46.2									112.3			106.6
Total income			8,048			8.9			8.8									16.3			13.5
Administrative expenses and amortizations			(3,304)			7.0			6.7									6.2			4.1
Net operating income			4,744			10.4			10.3									24.5			21.1
Net loan-loss provisions			(1,523)			(11.9)			(11.8)									0.7			(1.6)
Other gains (losses) and provisions			(844)			36.3			35.2									49.2			46.1
Profit before tax			2,376			21.9			21.9									37.3			32.5
Tax on profit			(779)			142.0			139.5									76.8			69.2
Profit from continuing operations			1,597			(1.8)			(1.6)									23.8			19.8
Net profit from discontinued operations			—			—			—									—			—
Consolidated profit			1,597			(1.8)			(1.6)									23.8			19.8
Non-controlling interests			(94)			(0.7)			2.7									0.3			(2.9)
Profit attributable to the parent			1,503			(1.9)			(1.9)									25.7			21.6
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.
Balance sheet and activity metrics
Loans and advances to customers			622,661			0.7			0.3									(0.7)			(1.6)
Customer deposits			657,068			(1.4)			(2.0)									2.5			1.0
Memorandum items:
Gross loans and advances to customers ²			620,992			0.4			0.0									(1.2)			(2.0)
Customer funds			731,854			0.8			0.3									4.3			2.9
Customer deposits ³			642,445			0.7			0.1									3.2			1.7
Mutual funds			89,409			1.8			2.2									12.9			12.8
Risk Weighted Assets			300,139			2.3												(1.9)
Note: series include adjustments to some of the 2023 business 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.
Ratios (%) and customers
RoTE ⁴			15.6			(0.2)												2.3
Efficiency ratio			41.1			(0.8)												(3.9)
NPL ratio			3.24			0.03												0.05
NPL coverage ratio			60			(1.4)												(2.7)
Number of total customers (thousands)			140,381			1.1												3.9
Number of active customers (thousands)			76,003			1.2												2.4

1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
4. Denominator allocated according to RWA consumption.

50						January - March 2024

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Group financial information

DIGITAL CONSUMER BANK																		Q
EUR million
						/			Q4'23									/			Q1'23
Underlying income statement			Q1'24			%			% excl. FX									%			% excl. FX
Net interest income			2,710			4.3			4.7									6.4			6.6
Net fee income			354			7.6			7.4									23.0			22.4
Gains (losses) on financial transactions 1			7			(82.9)			(83.0)									(69.3)			(69.7)
Other operating income			113			(38.9)			(38.8)									(44.3)			(43.9)
Total income			3,185			0.9			1.2									4.0			4.2
Administrative expenses and amortizations			(1,311)			(4.4)			(4.1)									(0.5)			(0.2)
Net operating income			1,874			5.0			5.3									7.4			7.5
Net loan-loss provisions			(1,137)			1.0			1.5									24.1			24.5
Other gains (losses) and provisions			(118)			95.2			93.0									65.0			61.9
Profit before tax			619			3.6			3.5									(18.2)			(18.3)
Tax on profit			(82)			42.6			40.5									(51.5)			(52.0)
Profit from continuing operations			537			(0.5)			(0.5)									(8.6)			(8.5)
Net profit from discontinued operations			—			—			—									—			—
Consolidated profit			537			(0.5)			(0.5)									(8.6)			(8.5)
Non-controlling interests			(73)			(11.8)			(11.7)									(26.3)			(26.7)
Profit attributable to the parent			464			1.5			1.5									(5.0)			(4.8)
Balance sheet and activity metrics
Loans and advances to customers			199,908			0.4			0.0									4.9			4.5
Customer deposits			118,628			2.8			2.1									12.4			12.1
Memorandum items:
Gross loans and advances to customers ²			207,568			0.4			0.0									4.9			4.5
Customer funds			125,708			3.9			3.2									13.4			13.1
Customer deposits ³			118,594			3.7			3.0									13.2			12.9
Mutual funds			7,113			6.8			5.6									15.9			15.6
Risk Weighted Assets			156,902			1.6												2.7
Note: series include adjustments to some of the 2023 business 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.
Ratios (%) and customers
RoTE ⁴			11.2			0.0												(0.5)
Efficiency ratio			41.2			(2.3)												(1.9)
NPL ratio			4.86			0.12												0.82
NPL coverage ratio			76			(0.4)												(15.1)
Number of total customers (thousands)			25,036			(1.5)												(0.5)

1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
4. Denominator allocated according to RWA consumption.

January - March 2024						51

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Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Group financial information

CORPORATE & INVESTMENT BANKING																		Q
EUR million
						/			Q4'23									/			Q1'23
Underlying income statement			Q1'24			%			% excl. FX									%			% excl. FX
Net interest income			1,062			2.4			2.4									25.8			25.3
Net fee income			654			38.8			39.2									7.9			6.8
Gains (losses) on financial transactions 1			571			245.2			253.4									(2.8)			(3.0)
Other operating income			(174)			—			—									438.5			423.8
Total income			2,112			24.0			24.4									5.4			4.8
Administrative expenses and amortizations			(888)			(12.1)			(11.9)									19.7			18.8
Net operating income			1,225			76.5			77.2									(3.0)			(3.4)
Net loan-loss provisions			(40)			(80.4)			(80.5)									—			—
Other gains (losses) and provisions			(78)			262.5			265.1									(24.8)			(27.1)
Profit before tax			1,107			137.4			139.2									(6.5)			(6.6)
Tax on profit			(346)			162.9			166.0									(7.8)			(8.4)
Profit from continuing operations			760			127.3			128.7									(5.8)			(5.7)
Net profit from discontinued operations			—			—			—									—			—
Consolidated profit			760			127.3			128.7									(5.8)			(5.7)
Non-controlling interests			(55)			38.7			43.1									(15.6)			(12.9)
Profit attributable to the parent			705			139.2			139.8									(5.0)			(5.1)
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.
Balance sheet and activity metrics
Loans and advances to customers			176,221			4.3			3.4									0.1			(0.7)
Customer deposits			206,882			1.6			1.1									7.6			7.3
Memorandum items:
Gross loans and advances to customers ²			139,259			1.2			0.5									(0.2)			(1.0)
Customer funds			158,003			(7.0)			(7.0)									3.4			3.4
Customer deposits ³			143,134			(7.8)			(7.9)									1.2			1.3
Mutual funds			14,869			2.1			2.9									30.6			29.6
Risk Weighted Assets			120,062			4.5												6.9
Note: series include adjustments to some of the 2023 business 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.
Ratios (%)
RoTE ⁴			19.2			10.5												(2.5)
Efficiency ratio			42.0			(17.3)												5.0
NPL ratio			1.14			(0.22)												(0.28)
NPL coverage ratio			46.2			5.0												10.9

1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
4. Denominator allocated according to RWA consumption.

52						January - March 2024

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Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Group financial information

WEALTH MANAGEMENT & INSURANCE																		Q
EUR million
						/			Q4'23									/			Q1'23
Underlying income statement			Q1'24			%			% excl. FX									%			% excl. FX
Net interest income			423			12.0			12.2									26.5			25.6
Net fee income			364			14.2			14.2									18.1			17.4
Gains (losses) on financial transactions 1			41			(10.4)			(10.3)									15.5			13.8
Other operating income			64			51.1			49.7									(20.2)			(21.9)
Total income			892			13.7			13.7									17.6			16.6
Administrative expenses and amortizations			(306)			(8.6)			(8.6)									5.3			4.7
Net operating income			585			30.3			30.3									25.3			24.0
Net loan-loss provisions			(4)			—			—									—			—
Other gains (losses) and provisions			(24)			—			—									1.7			1.4
Profit before tax			557			18.2			18.1									25.5			24.2
Tax on profit			(137)			47.0			47.0									26.3			25.7
Profit from continuing operations			420			11.1			11.0									25.2			23.7
Net profit from discontinued operations			—			—			—									—			—
Consolidated profit			420			11.1			11.0									25.2			23.7
Non-controlling interests			(20)			(0.9)			0.1									3.2			2.7
Profit attributable to the parent			400			11.7			11.6									26.5			24.9
Balance sheet and activity metrics
Loans and advances to customers			22,832			1.4			0.7									4.7			4.4
Customer deposits			59,659			2.0			1.5									2.0			1.0
Memorandum items:
Gross loans and advances to customers ²			22,921			1.4			0.6									4.5			4.2
Customer funds			165,812			5.5			5.1									9.7			8.7
Customer deposits ³			58,850			2.1			1.6									2.8			1.9
Mutual funds			106,962			7.5			7.1									13.8			12.9
Risk Weighted Assets			16,056			(12.8)												0.2
Assets under management			482,428			5.0			4.7									15.4			14.4
Gross written premiums			2,960			(24.1)			(24.1)									(1.5)			(3.6)
Note: Series 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.
Ratios (%) and customers
RoTE ⁴			77.3			17.3												9.1
Efficiency ratio			34.4			(8.4)												(4.0)
NPL ratio			0.64			(0.76)												(0.20)
NPL coverage ratio			61.6			32.3												(0.6)
Number of Private Banking customers (thousands)			277			5.3												13.0

1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
4. Denominator allocated according to RWA consumption.

January - March 2024						53

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Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Group financial information

PAYMENTS																		Q
EUR million
						/			Q4'23									/			Q1'23
Underlying income statement			Q1'24			%			% excl. FX									%			% excl. FX
Net interest income			675			16.1			15.9									16.0			12.4
Net fee income			676			(4.5)			(4.3)									(12.1)			(14.4)
Gains (losses) on financial transactions 1			1			(65.0)			(61.3)									—			—
Other operating income			1			(95.1)			(95.2)									—			—
Total income			1,353			3.4			3.4									2.9			(0.1)
Administrative expenses and amortizations			(650)			18.2			18.2									10.4			8.1
Net operating income			703			(7.4)			(7.3)									(3.2)			(6.6)
Net loan-loss provisions			(418)			15.4			14.1									(11.3)			(14.4)
Other gains (losses) and provisions			(20)			(36.4)			(36.2)									46.4			41.7
Profit before tax			265			(27.5)			(26.6)									9.7			6.0
Tax on profit			(106)			(20.2)			(19.3)									(10.0)			(12.7)
Profit from continuing operations			159			(31.7)			(30.7)									28.5			23.7
Net profit from discontinued operations			—			—			—									—			—
Consolidated profit			159			(31.7)			(30.7)									28.5			23.7
Non-controlling interests			(22)			(25.5)			(21.2)									28.4			32.4
Profit attributable to the parent			137			(32.6)			(32.0)									28.5			22.5
Balance sheet and activity metrics
Loans and advances to customers			22,329			1.3			1.3									8.9			7.7
Customer deposits			790			(44.2)			(44.2)									31.0			31.0
Memorandum items:
Gross loans and advances to customers ²			24,014			1.3			1.2									8.7			7.4
Customer funds			790			(44.2)			(44.2)									31.0			31.0
Customer deposits ³			790			(44.2)			(44.2)									31.0			31.0
Mutual funds			—			—			—									—			—
Risk Weighted Assets			20,769			(0.9)												14.6
Ratios (%)
RoTE ⁴			20.8			(14.3)												3.0
NPL ratio			4.85			(0.18)												(0.13)
NPL coverage ratio			145			5.0												1.3

1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
4. Denominator allocated according to RWA consumption.

54						January - March 2024

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Group financial information

PagoNxt																		Q
EUR million
						/			Q4'23									/			Q1'23
Underlying income statement			Q1'24			%			% excl. FX									%			% excl. FX
Net interest income			31			(18.7)			(18.7)									230.9			216.6
Net fee income			224			(11.4)			(10.9)									2.5			(0.1)
Gains (losses) on financial transactions 1			(2)			—			—									(78.0)			(78.6)
Other operating income			30			2.8			2.5									30.2			28.3
Total income			283			(11.7)			(11.3)									16.3			13.4
Administrative expenses and amortizations			(304)			13.7			14.2									9.7			8.4
Net operating income			(21)			—			—									(37.5)			(32.0)
Net loan-loss provisions			(4)			199.1			207.6									(39.0)			(39.2)
Other gains (losses) and provisions			(2)			(89.6)			(89.5)									5.0			1.9
Profit before tax			(27)			—			—									(35.5)			(31.2)
Tax on profit			(10)			67.8			66.8									(33.9)			(37.9)
Profit from continuing operations			(37)			—			—									(35.1)			(33.0)
Net profit from discontinued operations			—			—			—									—			—
Consolidated profit			(37)			—			—									(35.1)			(33.0)
Non-controlling interests			(2)			—			—									—			—
Profit attributable to the parent			(39)			—			—									(28.7)			(26.3)
Balance sheet and activity metrics
Loans and advances to customers			1,415			21.2			19.7									57.7			53.1
Customer deposits			790			(44.2)			(44.2)									31.0			31.0
Memorandum items:
Gross loans and advances to customers ²			1,443			20.6			19.1									55.1			50.7
Customer funds			790			(44.2)			(44.2)									31.0			31.0
Customer deposits ³			790			(44.2)			(44.2)									31.0			31.0
Mutual funds			—			—			—									—			—
Risk Weighted Assets			5,104			(6.0)												64.5
Total transactions (Getnet, million)			2,413			(6.4)												13.2
Total payments volume (Getnet)			53,743			(5.4)			(5.3)									14.1			17.4
Ratios (%)
EBITDA margin			17.0			(21.0)												9.5
Efficiency ratio			107.5			23.9												(6.4)

1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.

January - March 2024						55

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Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Group financial information

Cards																					Q
EUR million
						/			Q4'23									/			Q1'23
Underlying income statement			Q1'24			%			% excl. FX									%			% excl. FX
Net interest income			644			18.5			18.3									12.5			9.0
Net fee income			452			(0.7)			(0.6)									(17.9)			(20.0)
Gains (losses) on financial transactions 1			3			10.6			27.3									41.8			78.5
Other operating income			(30)			117.3			122.3									(45.3)			(45.1)
Total income			1,070			8.2			8.2									(0.2)			(3.1)
Administrative expenses and amortizations			(346)			22.6			22.1									11.0			7.8
Net operating income			724			2.5			2.6									(4.8)			(7.6)
Net loan-loss provisions			(414)			14.7			13.4									(10.9)			(14.1)
Other gains (losses) and provisions			(17)			111.8			109.5									54.7			49.8
Profit before tax			292			(13.2)			(11.9)									2.9			0.9
Tax on profit			(96)			(24.2)			(23.3)									(6.6)			(9.0)
Profit from continuing operations			196			(6.6)			(5.0)									8.4			6.6
Net profit from discontinued operations			—			—			—									—			—
Consolidated profit			196			(6.6)			(5.0)									8.4			6.6
Non-controlling interests			(19)			(33.6)			(30.2)									2.8			5.4
Profit attributable to the parent			177			(2.3)			(1.2)									9.1			6.8
Balance sheet and activity metrics
Loans and advances to customers			20,914			0.2			0.2									6.6			5.6
Customer deposits			—			—			—									—			—
Memorandum items:
Gross loans and advances to customers ²			22,571			0.3			0.3									6.7			5.5
Customer funds			—			—			—									—			—
Customer deposits ³			—			—			—									—			—
Mutual funds			—			—			—									—			—
Risk Weighted Assets			15,665			0.8												4.3
Number of cards (million)			97			0.2												2.3
Ratios (%)
RoTE ⁴			35.5			(7.7)												1.9
Efficiency ratio			32.3			3.8												3.3
NPL ratio			4.98			(0.1)												(0.1)
NPL coverage ratio			147			5.4												2.4

1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
4. Denominator allocated according to RWA consumption.

56						January - March 2024

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Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Group financial information

CORPORATE CENTRE																					Q
EUR million
						/			Q4'23									/			Q1'23
Underlying income statement			Q1'24			Q4'23			%									Q1'23			%
Net interest income			(31)			83			—									(52)			(40.5)
Net fee income			(1)			(8)			(81.5)									(3)			(59.4)
Gains (losses) on financial transactions 1			(162)			171			—									(54)			198.1
Other operating income			(16)			(35)			(55.2)									(15)			7.0
Total income			(210)			212			—									(124)			68.8
Administrative expenses and amortizations			(87)			(108)			(19.0)									(95)			(7.6)
Net operating income			(297)			104			—									(219)			35.8
Net loan-loss provisions			(2)			(1)			107.3									3			—
Other gains (losses) and provisions			(41)			(30)			34.7									(44)			(7.7)
Profit before tax			(340)			73			—									(260)			30.7
Tax on profit			(18)			14			—									(19)			(5.7)
Profit from continuing operations			(357)			87			—									(279)			28.3
Net profit from discontinued operations			—			—			—									—			—
Consolidated profit			(357)			87			—									(279)			28.3
Non-controlling interests			—			—			—									—			(75.8)
Profit attributable to the parent			(357)			87			—									(279)			28.3
Balance sheet
Loans and advances to customers			5,580			5,565			0.3									5,680			(1.8)
Cash, central banks and credit institutions			100,663			119,279			(15.6)									94,047			7.0
Debt instruments			8,388			7,726			8.6									8,105			3.5
Other financial assets			820			808			1.5									783			4.8
Other asset accounts			130,691			121,327			7.7									129,786			0.7
Total assets			246,142			254,705			(3.4)									238,400			3.2
Customer deposits			1,428			1,508			(5.3)									1,127			26.7
Central banks and credit institutions			21,970			47,747			(54.0)									38,891			(43.5)
Marketable debt securities			115,063			110,144			4.5									97,787			17.7
Other financial liabilities			1,774			326			443.8									1,259			40.9
Other liabilities accounts			8,001			7,084			12.9									6,367			25.7
Total liabilities			148,236			166,809			(11.1)									145,431			1.9
Total equity			97,907			87,896			11.4									92,969			5.3
Memorandum items:
Gross loans and advances to customers 2			5,651			5,640			0.2									5,704			(0.9)
Customer funds			1,428			1,508			(5.3)									1,127			26.7
Customer deposits 3			1,428			1,508			(5.3)									1,127			26.7
Mutual funds			—			—			—									—			—
Resources
Number of employees			1,877			1,922			(2.3)									1,940			(3.2)

1. Includes exchange differences.

2. Excluding reverse repos.

3. Excluding repos.

January - March 2024						57

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Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Group financial information

EUROPE																		Q
EUR million
						/			Q4'23									/			Q1'23
Underlying income statement			Q1'24			%			% excl. FX									%			% excl. FX
Net interest income			4,123			—			(0.7)									14.6			11.8
Net fee income			1,202			12.2			11.8									2.9			1.6
Gains (losses) on financial transactions 1			410			117.1			118.2									18.2			17.5
Other operating income			74			—			—									25.9			31.2
Total income			5,809			11.5			10.8									12.3			10.1
Administrative expenses and amortizations			(2,305)			(2.2)			(2.8)									6.4			4.5
Net operating income			3,504			22.8			22.0									16.7			14.1
Net loan-loss provisions			(484)			(16.8)			(17.5)									(24.6)			(26.3)
Other gains (losses) and provisions			(582)			40.1			38.5									12.8			11.3
Profit before tax			2,438			31.3			30.7									32.1			28.9
Tax on profit			(796)			65.1			64.1									38.0			35.1
Profit from continuing operations			1,642			19.5			19.0									29.4			26.1
Net profit from discontinued operations			—			—			—									—			—
Consolidated profit			1,642			19.5			19.0									29.4			26.1
Non-controlling interests			(101)			48.9			47.7									26.6			16.4
Profit attributable to the parent			1,541			17.9			17.5									29.6			26.8
Balance sheet
Loans and advances to customers			580,252			1.8			1.0									(0.2)			(1.8)
Cash, central banks and credit institutions			160,123			(19.3)			(19.7)									(18.1)			(19.2)
Debt instruments			126,043			9.2			8.9									47.3			45.2
Other financial assets			54,146			21.6			21.5									12.1			12.0
Other asset accounts			27,189			1.2			0.8									1.6			0.7
Total assets			947,753			(0.8)			(1.4)									1.1			(0.4)
Customer deposits			643,916			(0.2)			(0.8)									3.8			2.2
Central banks and credit institutions			93,237			(10.5)			(11.1)									(20.1)			(21.1)
Marketable debt securities			79,699			0.8			(0.1)									4.6			2.8
Other financial liabilities			58,223			9.1			8.9									8.7			8.3
Other liabilities accounts			28,913			(2.4)			(2.6)									(1.6)			(2.1)
Total liabilities			903,987			(0.8)			(1.4)									0.9			(0.6)
Total equity			43,765			(0.9)			(1.6)									5.9			3.8
Memorandum items:
Gross loans and advances to customers 2			552,653			0.2			(0.6)									(2.4)			(4.0)
Customer funds			725,291			0.0			(0.6)									4.5			3.0
Customer deposits 3			613,879			(1.0)			(1.7)									2.5			0.9
Mutual funds			111,412			6.0			5.8									17.2			16.6
Ratios (%), operating means and customers
RoTE			15.7			2.2												2.9
Efficiency ratio			39.7			(5.6)												(2.2)
NPL ratio			2.32			0.00												(0.03)
NPL coverage ratio			49.1			(0.2)												(1.9)
Number of employees			67,756			0.4												1.6
Number of branches			3,069			(0.5)												(2.0)
Number of total customers (thousands)			46,424			0.3												1.5
Number of active customers (thousands)			28,640			0.4												1.5

1. Includes exchange differences.

2. Excluding reverse repos.

3. Excluding repos.

58						January - March 2024

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Group financial information

Spain															Q
EUR million
						/ Q4'23									/ Q1'23
Underlying income statement			Q1'24			%									%
Net interest income			1,816			4.5									24.3
Net fee income			746			14.4									(0.8)
Gains (losses) on financial transactions 1			362			177.0									38.9
Other operating income			93			—									24.5
Total income			3,016			28.8									18.4
Administrative expenses and amortizations			(1,032)			(6.2)									1.8
Net operating income			1,984			59.9									29.4
Net loan-loss provisions			(331)			(3.3)									(20.2)
Other gains (losses) and provisions			(417)			117.8									9.9
Profit before tax			1,236			74.7									67.2
Tax on profit			(464)			143.0									70.2
Profit from continuing operations			772			49.5									65.5
Net profit from discontinued operations			—			—									—
Consolidated profit			772			49.5									65.5
Non-controlling interests			0			(92.1)									—
Profit attributable to the parent			772			49.5									65.5
Balance sheet
Loans and advances to customers			245,231			2.5									(1.3)
Cash, central banks and credit institutions			77,736			(33.2)									(28.5)
Debt instruments			78,191			11.6									58.6
Other financial assets			50,681			23.8									13.5
Other asset accounts			16,968			(0.6)									(5.4)
Total assets			468,807			(3.1)									(0.1)
Customer deposits			319,431			(1.4)									2.7
Central banks and credit institutions			33,759			(24.6)									(24.9)
Marketable debt securities			26,560			(6.8)									(3.3)
Other financial liabilities			49,713			6.8									5.8
Other liabilities accounts			21,546			(3.2)									(0.7)
Total liabilities			451,010			(3.3)									(0.2)
Total equity			17,797			2.2									3.8
Memorandum items:
Gross loans and advances to customers 2			228,489			(0.6)									(5.4)
Customer funds			381,244			(1.4)									1.7
Customer deposits 3			298,662			(3.3)									(0.9)
Mutual funds			82,582			5.8									12.0
Ratios (%), operating means and customers
RoTE			18.0			5.6									6.9
Efficiency ratio			34.2			(12.8)									(5.6)
NPL ratio			3.00			(0.06)									(0.19)
NPL coverage ratio			49.8			0.7									(0.1)
Number of employees 4			24,573			(0.6)									(1.1)
Number of branches			1,864			(0.5)									(2.4)
Number of total customers (thousands)			15,134			0.7									4.5
Number of active customers (thousands)			8,495			1.5									6.6

1. Includes exchange differences.

2. Excluding reverse repos.

3. Excluding repos.

4. Employee data for Spain and Other Europe have been modified slightly to better reflect the allocation of CIB employees.

January - March 2024						59

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Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Group financial information

United Kingdom																		Q
EUR million
						/			Q4'23									/			Q1'23
Underlying income statement			Q1'24			%			% excl. FX									%			% excl. FX
Net interest income			1,185			(3.2)			(4.4)									(7.6)			(10.4)
Net fee income			79			5.8			4.6									(4.9)			(7.8)
Gains (losses) on financial transactions 1			(7)			(61.9)			(62.6)									—			—
Other operating income			0			—			—									(90.9)			(91.2)
Total income			1,257			(1.8)			(3.0)									(8.1)			(10.9)
Administrative expenses and amortizations			(734)			5.2			3.9									8.9			5.6
Net operating income			523			(10.1)			(11.1)									(24.7)			(27.0)
Net loan-loss provisions			(17)			(4.3)			(4.5)									(70.8)			(71.7)
Other gains (losses) and provisions			(91)			(45.8)			(46.5)									(1.6)			(4.6)
Profit before tax			415			4.7			3.6									(23.6)			(25.9)
Tax on profit			(109)			16.0			14.8									(25.6)			(27.8)
Profit from continuing operations			305			1.2			0.1									(22.8)			(25.2)
Net profit from discontinued operations			—			—			—									—			—
Consolidated profit			305			1.2			0.1									(22.8)			(25.2)
Non-controlling interests			—			—			—									—			—
Profit attributable to the parent			305			1.2			0.1									(22.8)			(25.2)
Balance sheet
Loans and advances to customers			249,113			1.4			(0.2)									(1.1)			(3.8)
Cash, central banks and credit institutions			64,103			2.8			1.2									(3.6)			(6.2)
Debt instruments			10,287			0.5			(1.0)									27.1			23.7
Other financial assets			318			10.2			8.5									(24.8)			(26.9)
Other asset accounts			4,784			9.7			8.0									29.4			25.9
Total assets			328,606			1.7			0.2									(0.6)			(3.3)
Customer deposits			236,141			1.2			(0.4)									2.7			—
Central banks and credit institutions			27,469			(2.6)			(4.1)									(28.6)			(30.5)
Marketable debt securities			45,230			3.1			1.6									2.0			(0.7)
Other financial liabilities			5,400			57.3			54.9									48.5			44.5
Other liabilities accounts			1,580			(7.3)			(8.7)									14.3			11.2
Total liabilities			315,820			1.7			0.1									(0.6)			(3.3)
Total equity			12,786			3.3			1.8									(1.2)			(3.9)
Memorandum items:
Gross loans and advances to customers 2			236,512			0.6			(0.9)									(2.2)			(4.9)
Customer funds			235,125			1.5			0.0									4.3			1.5
Customer deposits 3			227,633			1.4			(0.1)									4.3			1.5
Mutual funds			7,492			3.0			1.5									3.3			0.5
Ratios (%), operating means and customers
RoTE			10.4			0.4												(3.1)
Efficiency ratio			58.4			3.9												9.1
NPL ratio			1.48			0.06												0.21
NPL coverage ratio			28			(2.0)												(4.8)
Number of employees			22,339			0.3												2.2
Number of branches			444			0.0												(0.4)
Number of total customers (thousands)			22,496			0.1												0.4
Number of active customers (thousands)			13,807			(0.4)												(1.0)

1. Includes exchange differences.

2. Excluding reverse repos.

3. Excluding repos.

60						January - March 2024

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Group financial information

Portugal															Q
EUR million
						/ Q4'23									/ Q1'23
Underlying income statement			Q1'24			%									%
Net interest income			431			(4.5)									65.1
Net fee income			127			14.3									2.6
Gains (losses) on financial transactions 1			17			34.6									92.8
Other operating income			9			0.3									(23.5)
Total income			584			—									44.1
Administrative expenses and amortizations			(134)			(4.9)									1.2
Net operating income			450			1.6									64.9
Net loan-loss provisions			(7)			(60.9)									(46.8)
Other gains (losses) and provisions			(3)			131.6									—
Profit before tax			440			3.9									68.8
Tax on profit			(137)			4.6									68.9
Profit from continuing operations			303			3.6									68.7
Net profit from discontinued operations			—			—									—
Consolidated profit			303			3.6									68.7
Non-controlling interests			(1)			(22.2)									218.6
Profit attributable to the parent			303			3.7									68.6
Balance sheet
Loans and advances to customers			37,318			1.2									(2.7)
Cash, central banks and credit institutions			6,869			(15.0)									(29.2)
Debt instruments			12,425			13.0									56.1
Other financial assets			1,120			3.8									(0.7)
Other asset accounts			1,049			(18.0)									(22.3)
Total assets			58,780			0.8									0.5
Customer deposits			36,509			0.4									(2.1)
Central banks and credit institutions			8,826			(4.5)									(8.2)
Marketable debt securities			5,815			20.8									78.9
Other financial liabilities			326			2.3									7.4
Other liabilities accounts			3,457			(7.2)									(25.5)
Total liabilities			54,933			0.9									(0.3)
Total equity			3,847			0.3									15.0
Memorandum items:
Gross loans and advances to customers 2			38,116			1.2									(3.0)
Customer funds			40,869			0.6									(0.5)
Customer deposits 3			36,509			0.4									(2.1)
Mutual funds			4,360			2.6									15.2
Ratios (%), operating means and customers
RoTE			31.1			(3.5)									10.2
Efficiency ratio			22.9			(1.2)									(9.7)
NPL ratio			2.63			0.04									(0.42)
NPL coverage ratio			81			(1.8)									0.6
Number of employees			4,912			(0.7)									(0.9)
Number of branches			375			(0.3)									(0.5)
Number of total customers (thousands)			2,931			0.8									0.8
Number of active customers (thousands)			1,843			0.2									3.2

1. Includes exchange differences.

2. Excluding reverse repos.

3. Excluding repos.

January - March 2024						61

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Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Group financial information

Poland																		Q
EUR million
						/			Q4'23									/			Q1'23
Underlying income statement			Q1'24			%			% excl. FX									%			% excl. FX
Net interest income			686			2.0			—									17.1			7.8
Net fee income			176			15.0			12.8									21.2			11.5
Gains (losses) on financial transactions 1			5			(6.1)			1.4									(82.1)			(83.6)
Other operating income			(33)			—			—									16.9			7.5
Total income			834			(0.5)			(2.5)									14.4			5.2
Administrative expenses and amortizations			(229)			(4.8)			(6.8)									16.0			6.7
Net operating income			605			1.2			(0.7)									13.8			4.7
Net loan-loss provisions			(130)			(34.6)			(36.2)									(13.9)			(20.8)
Other gains (losses) and provisions			(62)			(29.6)			(31.6)									39.9			28.7
Profit before tax			412			32.9			31.2									22.8			13.0
Tax on profit			(99)			1.5			(0.4)									11.8			2.8
Profit from continuing operations			314			47.3			45.7									26.7			16.6
Net profit from discontinued operations			—			—			—									—			—
Consolidated profit			314			47.3			45.7									26.7			16.6
Non-controlling interests			(100)			47.2			46.1									24.2			14.2
Profit attributable to the parent			213			47.3			45.6									28.0			17.7
Balance sheet
Loans and advances to customers			34,750			2.7			1.8									15.8			6.6
Cash, central banks and credit institutions			9,009			(3.0)			(3.8)									3.3			(4.9)
Debt instruments			15,834			5.1			4.2									37.0			26.2
Other financial assets			520			(29.1)			(29.7)									3.8			(4.4)
Other asset accounts			1,923			(2.6)			(3.4)									18.2			8.9
Total assets			62,036			1.8			1.0									18.3			8.9
Customer deposits			45,900			3.1			2.3									16.5			7.2
Central banks and credit institutions			4,171			(9.8)			(10.5)									7.0			(1.5)
Marketable debt securities			2,094			7.6			6.7									91.2			76.1
Other financial liabilities			1,417			(17.0)			(17.7)									31.8			21.4
Other liabilities accounts			1,650			(2.2)			(3.0)									18.0			8.6
Total liabilities			55,231			1.4			0.6									17.8			8.5
Total equity			6,805			5.4			4.5									22.5			12.8
Memorandum items:
Gross loans and advances to customers 2			35,678			2.7			1.9									16.0			6.8
Customer funds			50,881			3.1			2.2									19.0			9.6
Customer deposits 3			45,315			1.9			1.1									15.0			5.9
Mutual funds			5,566			13.4			12.4									66.0			52.9
Ratios (%), operating means and customers
RoTE			20.1			6.0												0.6
Efficiency ratio			27.5			(1.2)												0.4
NPL ratio			3.57			0.0												(0.10)
NPL coverage ratio			75			1.5												(0.3)
Number of employees			10,851			0.3												2.2
Number of branches			377			(1.0)												(4.1)
Number of total customers (thousands)			5,858			(0.3)												1.9
Number of active customers (thousands)			4,492			0.6												3.3

1. Includes exchange differences.

2. Excluding reverse repos.

3. Excluding repos.

62						January - March 2024

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Group financial information

Other Europe
EUR million
						/			Q4'23									/			Q1'23
Underlying income statement			Q1'24			%			% excl. FX									%			% excl. FX
Net interest income			5			(86.8)			(86.6)									(28.8)			(21.9)
Net fee income			74			(8.0)			(7.6)									14.1			14.7
Gains (losses) on financial transactions 1			34			(42.9)			(42.7)									(33.0)			(32.7)
Other operating income			4			—			—									—			—
Total income			118			(29.7)			(29.3)									(3.0)			(2.0)
Administrative expenses and amortizations			(175)			(1.1)			(0.7)									17.2			17.8
Net operating income			(57)			525.6			508.0									105.7			102.2
Net loan-loss provisions			1			—			—									—			—
Other gains (losses) and provisions			(9)			—			—									735.9			737.1
Profit before tax			(65)			—			—									101.3			98.3
Tax on profit			13			(58.9)			(59.0)									5.7			4.8
Profit from continuing operations			(52)			—			—									157.8			152.7
Net profit from discontinued operations			—			—			—									—			—
Consolidated profit			(52)			—			—									157.8			152.7
Non-controlling interests			—			—			—									—			—
Profit attributable to the parent			(53)			—			—									174.9			169.2
Balance sheet
Loans and advances to customers			13,840			(3.9)			(6.0)									10.8			10.2
Cash, central banks and credit institutions			2,406			1.3			—									24.8			24.4
Debt instruments			9,305			2.7			2.4									7.3			7.2
Other financial assets			1,508			(0.3)			(2.0)									(5.1)			(5.5)
Other asset accounts			2,465			13.6			12.5									14.3			14.1
Total assets			29,524			0.0			(1.4)									10.0			9.6
Customer deposits			5,935			(8.7)			(10.9)									104.6			103.2
Central banks and credit institutions			19,012			9.9			8.6									(3.7)			(4.0)
Marketable debt securities			0			(100.0)			(100.0)									(100.0)			(100.0)
Other financial liabilities			1,367			(0.2)			(2.1)									(13.3)			(13.8)
Other liabilities accounts			680			169.0			166.9									148.9			148.6
Total liabilities			26,994			6.2			4.6									10.2			9.8
Total equity			2,530			(38.1)			(38.7)									8.0			7.6
Memorandum items:
Gross loans and advances to customers 2			13,857			(3.9)			(6.0)									10.8			10.2
Customer funds			17,172			1.3			(0.1)									78.3			77.9
Customer deposits 3			5,759			(9.0)			(11.2)									111.0			109.5
Mutual funds			11,412			7.5			6.6									65.4			65.4
Resources
Number of employees 4			5,081			8.2												15.8

1. Includes exchange differences.

2. Excluding reverse repos.

3. Excluding repos.

4. Employee data for Spain and Other Europe have been modified slightly to better reflect the allocation of CIB employees..

January - March 2024						63

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Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Group financial information

DCB EUROPE																		Q
EUR million
						/			Q4'23									/			Q1'23
Underlying income statement			Q1'24			%			% excl. FX									%			% excl. FX
Net interest income			1,095			1.0			0.6									6.4			6.1
Net fee income			220			14.7			14.5									15.1			14.8
Gains (losses) on financial transactions 1			4			(90.3)			(90.3)									(86.6)			(86.7)
Other operating income			91			(21.4)			(21.7)									(1.4)			(1.6)
Total income			1,410			(1.6)			(2.0)									5.0			4.7
Administrative expenses and amortizations			(665)			2.0			1.6									0.8			0.7
Net operating income			745			(4.6)			(5.1)									9.0			8.6
Net loan-loss provisions			(276)			81.4			80.4									42.8			42.7
Other gains (losses) and provisions			(69)			45.8			42.6									58.8			55.5
Profit before tax			401			(31.1)			(31.4)									(10.4)			(10.7)
Tax on profit			(103)			(22.1)			(22.6)									(6.5)			(6.9)
Profit from continuing operations			297			(33.8)			(34.0)									(11.7)			(11.9)
Net profit from discontinued operations			—			—			—									—			—
Consolidated profit			297			(33.8)			(34.0)									(11.7)			(11.9)
Non-controlling interests			(69)			(6.1)			(6.1)									(26.2)			(26.6)
Profit attributable to the parent			229			(39.2)			(39.4)									(6.2)			(6.3)
Balance sheet
Loans and advances to customers			132,139			(0.4)			(0.1)									6.5			6.2
Cash, central banks and credit institutions			19,150			2.8			3.1									22.1			22.2
Debt instruments			6,960			29.2			29.9									0.4			(0.4)
Other financial assets			109			(19.5)			(19.5)									(38.2)			(38.5)
Other asset accounts			10,170			2.3			2.2									13.1			12.7
Total assets			168,528			1.0			1.3									8.1			7.9
Customer deposits			73,265			5.7			6.1									20.8			20.7
Central banks and credit institutions			30,151			(5.7)			(5.7)									(25.7)			(26.2)
Marketable debt securities			44,061			(1.2)			(1.0)									25.2			25.2
Other financial liabilities			2,286			3.1			3.1									33.7			32.7
Other liabilities accounts			5,087			(2.8)			(2.5)									2.2			2.1
Total liabilities			154,850			1.0			1.2									8.2			7.9
Total equity			13,678			1.8			2.3									7.2			6.8
Memorandum items:
Gross loans and advances to customers 2			134,749			(0.3)			0.0									6.5			6.3
Customer funds			77,146			5.7			6.2									20.7			20.7
Customer deposits 3			73,265			5.7			6.1									20.8			20.7
Mutual funds			3,882			6.9			6.9									19.7			19.7
Ratios (%), operating means and customers
RoTE			8.9			(6.3)												(1.0)
Efficiency ratio			47.1			1.7												(1.9)
NPL ratio			2.27			0.14												0.22
NPL coverage ratio			86			(1.9)												(7.4)
Number of employees			16,852			0.3												1.3
Number of branches			340			(0.6)												(6.3)
Number of total customers (thousands)			19,612			(2.9)												(1.1)

1. Includes exchange differences.

2. Excluding reverse repos.

3. Excluding repos.

64						January - March 2024

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Group financial information

NORTH AMERICA																		Q
EUR million
						/			Q4'23									/			Q1'23
Underlying income statement			Q1'24			%			% excl. FX									%			% excl. FX
Net interest income			2,611			(0.6)			(1.2)									6.7			3.8
Net fee income			638			14.9			13.5									22.4			16.8
Gains (losses) on financial transactions 1			162			27.0			26.6									134.9			129.8
Other operating income			73			27.9			30.5									(28.3)			(25.6)
Total income			3,485			3.5			2.8									10.9			7.9
Administrative expenses and amortizations			(1,661)			(5.5)			(6.1)									10.8			8.2
Net operating income			1,824			13.4			12.5									11.1			7.5
Net loan-loss provisions			(985)			(12.5)			(12.6)									21.8			19.8
Other gains (losses) and provisions			(63)			345.8			342.0									239.2			215.4
Profit before tax			776			65.6			61.9									(4.7)			(9.1)
Tax on profit			(131)			805.8			645.0									(25.0)			(29.3)
Profit from continuing operations			645			42.1			39.7									0.8			(3.4)
Net profit from discontinued operations			—			—			—									—			—
Consolidated profit			645			42.1			39.7									0.8			(3.4)
Non-controlling interests			(1)			—			—									(90.2)			(91.0)
Profit attributable to the parent			644			41.8			39.4									2.7			(1.6)
Balance sheet
Loans and advances to customers			177,862			1.8			(1.1)									—			(2.7)
Cash, central banks and credit institutions			35,461			(1.4)			(4.3)									(16.4)			(20.4)
Debt instruments			55,620			10.6			7.0									17.5			12.0
Other financial assets			8,545			(21.9)			(24.5)									(44.6)			(48.0)
Other asset accounts			23,821			4.3			1.5									5.4			2.8
Total assets			301,308			2.2			(0.8)									(1.4)			(4.8)
Customer deposits			175,849			(0.1)			(2.9)									1.4			(1.5)
Central banks and credit institutions			37,801			8.9			5.4									3.9			(1.4)
Marketable debt securities			38,403			9.3			6.3									(1.4)			(4.0)
Other financial liabilities			17,175			(7.7)			(10.8)									(30.1)			(34.0)
Other liabilities accounts			6,879			1.7			(1.6)									1.4			(2.8)
Total liabilities			276,107			1.8			(1.1)									(1.4)			(4.8)
Total equity			25,201			6.6			3.5									(1.9)			(5.4)
Memorandum items:
Gross loans and advances to customers 2			166,598			3.2			0.3									6.0			2.9
Customer funds			176,018			2.7			(0.3)									5.6			2.0
Customer deposits 3			143,625			1.2			(1.7)									4.7			1.3
Mutual funds			32,393			10.0			6.4									10.1			5.0
Ratios (%), operating means and customers
RoTE			11.3			3.5												0.8
Efficiency ratio			47.7			(4.6)												(0.1)
NPL ratio			4.07			(0.02)												1.12
NPL coverage ratio			74			0.3												(20.7)
Number of employees			44,413			(2.6)												(1.7)
Number of branches			1,783			(0.1)												(3.3)
Number of total customers (thousands)			25,118			0.4												0.7
Number of active customers (thousands)			14,707			1.5												4.4

1. Includes exchange differences.

2. Excluding reverse repos.

3. Excluding repos.

January - March 2024						65

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Group financial information

United States																					Q
EUR million
						/			Q4'23									/			Q1'23
Underlying income statement			Q1'24			%			% excl. FX									%			% excl. FX
Net interest income			1,396			(2.2)			(1.3)									(4.7)			(3.6)
Net fee income			267			42.7			44.0									40.7			42.4
Gains (losses) on financial transactions 1			101			27.2			28.3									121.9			124.5
Other operating income			104			44.1			45.8									(17.9)			(16.9)
Total income			1,869			5.8			6.7									2.3			3.5
Administrative expenses and amortizations			(940)			(2.5)			(1.7)									3.0			4.2
Net operating income			929			15.8			16.9									1.5			2.7
Net loan-loss provisions			(615)			(25.4)			(24.8)									8.4			9.7
Other gains (losses) and provisions			(40)			—			—									—			—
Profit before tax			274			—			—									(20.8)			(19.9)
Tax on profit			6			(93.2)			(93.1)									—			—
Profit from continuing operations			279			317.3			328.4									(6.8)			(5.7)
Net profit from discontinued operations			—			—			—									—			—
Consolidated profit			279			317.3			328.4									(6.8)			(5.7)
Non-controlling interests			—			—			—									—			—
Profit attributable to the parent			279			317.3			328.4									(6.8)			(5.7)
Balance sheet
Loans and advances to customers			127,155			0.2			(2.1)									(5.2)			(5.7)
Cash, central banks and credit institutions			25,130			18.5			15.7									21.8			21.1
Debt instruments			24,550			8.2			5.7									4.9			4.3
Other financial assets			2,005			(50.8)			(51.9)									(59.9)			(60.1)
Other asset accounts			16,806			3.1			0.7									(2.9)			(3.5)
Total assets			195,645			2.4			0.0									(2.4)			(2.9)
Customer deposits			119,111			(2.2)			(4.4)									(5.2)			(5.7)
Central banks and credit institutions			22,999			32.1			29.1									44.3			43.5
Marketable debt securities			29,383			8.6			6.1									(0.3)			(0.9)
Other financial liabilities			5,847			(19.6)			(21.5)									(37.1)			(37.4)
Other liabilities accounts			3,194			2.4			0.1									(15.5)			(16.0)
Total liabilities			180,535			2.2			(0.2)									(1.9)			(2.5)
Total equity			15,111			4.4			1.9									(7.6)			(8.1)
Memorandum items:
Gross loans and advances to customers 2			115,076			2.1			(0.2)									1.3			0.7
Customer funds			107,185			(0.8)			(3.1)									(2.1)			(2.7)
Customer deposits 3			94,048			(1.7)			(4.0)									(0.6)			(1.2)
Mutual funds			13,137			6.2			3.8									(11.3)			(11.8)
Ratios (%), operating means and customers
RoTE			7.98			6.19												0.49
Efficiency ratio			50.3			(4.3)												0.4
NPL ratio			4.60			0.03												1.47
NPL coverage ratio			68			0.1												(23.7)
Number of employees			13,026			(3.4)												(10.1)
Number of branches			413			(0.5)												(12.7)
Number of total customers (thousands)			4,497			(0.3)												0.9
Number of active customers (thousands)			4,341			2.8												6.3

1. Includes exchange differences.

2. Excluding reverse repos.

3. Excluding repos.

66						January - March 2024

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Group financial information

Mexico																		Q
EUR million
						/			Q4'23									/			Q1'23
Underlying income statement			Q1'24			%			% excl. FX									%			% excl. FX
Net interest income			1,214			1.6			(0.9)									23.6			13.8
Net fee income			359			1.2			(1.2)									12.3			3.5
Gains (losses) on financial transactions 1			70			44.5			41.5									189.1			166.4
Other operating income			(35)			100.2			96.9									34.9			24.3
Total income			1,608			1.7			(0.8)									23.6			13.9
Administrative expenses and amortizations			(665)			(10.5)			(12.7)									23.1			13.4
Net operating income			943			12.5			9.9									24.1			14.3
Net loan-loss provisions			(370)			22.7			19.7									54.6			42.4
Other gains (losses) and provisions			(15)			21.5			19.2									(12.1)			(19.0)
Profit before tax			558			6.5			4.0									10.8			2.0
Tax on profit			(146)			15.4			12.9									11.2			2.4
Profit from continuing operations			412			3.6			1.2									10.6			1.9
Net profit from discontinued operations			—			—			—									—			—
Consolidated profit			412			3.6			1.2									10.6			1.9
Non-controlling interests			(1)			5.2			9.1									(91.8)			(92.5)
Profit attributable to the parent			411			3.6			1.2									14.6			5.6
Balance sheet
Loans and advances to customers			50,673			5.8			1.5									15.6			5.8
Cash, central banks and credit institutions			9,949			(29.4)			(32.2)									(53.7)			(57.6)
Debt instruments			31,067			12.5			7.9									29.9			18.9
Other financial assets			6,415			(4.6)			(8.4)									(37.8)			(43.1)
Other asset accounts			6,640			7.9			3.5									32.9			21.6
Total assets			104,745			2.2			(1.9)									0.2			(8.3)
Customer deposits			56,474			5.2			0.9									18.7			8.6
Central banks and credit institutions			14,562			(14.6)			(18.0)									(28.2)			(34.3)
Marketable debt securities			9,020			11.7			7.2									(4.8)			(12.9)
Other financial liabilities			11,208			0.2			(3.9)									(26.1)			(32.4)
Other liabilities accounts			3,609			0.8			(3.2)									22.8			12.4
Total liabilities			94,873			1.4			(2.7)									(0.6)			(9.0)
Total equity			9,872			10.9			6.4									8.3			(0.9)
Memorandum items:
Gross loans and advances to customers 2			51,479			5.7			1.5									18.2			8.2
Customer funds			68,569			9.2			4.8									20.4			10.1
Customer deposits 3			49,313			7.9			3.6									16.4			6.5
Mutual funds			19,256			12.7			8.2									31.8			20.6
Ratios (%), operating means and customers
RoTE			18.8			0.8												0.8
Efficiency ratio			41.4			(5.6)												(0.2)
NPL ratio			2.74			(0.08)												0.36
NPL coverage ratio			101			0.8												(7.8)
Number of employees			30,065			(2.6)												1.5
Number of branches			1,370			0.1												(0.1)
Number of total customers (thousands)			20,622			0.5												1.7
Number of active customers (thousands)			10,366			1.0												5.4

1. Includes exchange differences.

2. Excluding reverse repos.

3. Excluding repos.

January - March 2024						67

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Group financial information

Other North America
EUR million
						/			Q4'23									/			Q1'23
Underlying income statement			Q1'24			%			% excl. FX									%			% excl. FX
Net interest income			1			(82.8)			(82.8)									11.6			11.6
Net fee income			12			(8.9)			(8.9)									0.9			0.9
Gains (losses) on financial transactions 1			(8)			—			—									—			—
Other operating income			4			66.8			66.8									186.0			186.0
Total income			9			(55.0)			(55.0)									(36.5)			(36.5)
Administrative expenses and amortizations			(56)			10.5			10.6									20.0			20.0
Net operating income			(48)			50.1			50.3									43.0			43.0
Net loan-loss provisions			0			(91.1)			(91.1)									(98.0)			(98.0)
Other gains (losses) and provisions			(8)			34.8			34.8									—			—
Profit before tax			(56)			46.1			46.3									58.4			58.4
Tax on profit			9			(67.0)			(67.0)									313.5			313.6
Profit from continuing operations			(47)			331.2			332.5									41.6			41.6
Net profit from discontinued operations			—			—			—									—			—
Consolidated profit			(47)			331.2			332.5									41.6			41.6
Non-controlling interests			0			—			—									—			—
Profit attributable to the parent			(47)			381.1			382.7									47.4			47.4
Balance sheet
Loans and advances to customers			34			7.2			7.2									(22.2)			(22.2)
Cash, central banks and credit institutions			383			(42.6)			(42.6)									20.2			20.2
Debt instruments			2			26.1			26.1									—			—
Other financial assets			125			(10.4)			(10.4)									3.7			3.7
Other asset accounts			375			2.6			2.6									26.4			26.4
Total assets			918			(23.8)			(23.8)									17.9			17.9
Customer deposits			264			(44.2)			(44.2)									31.0			31.0
Central banks and credit institutions			240			(9.3)			(9.5)									55.0			55.0
Marketable debt securities			—			—			—									—			—
Other financial liabilities			120			(14.9)			(14.9)									(4.7)			(4.7)
Other liabilities accounts			75			13.8			13.8									16.2			16.2
Total liabilities			699			(26.0)			(26.1)									27.8			27.8
Total equity			219			(15.5)			(15.3)									(5.6)			(5.6)
Memorandum items:
Gross loans and advances to customers 2			43			4.8			4.8									(17.4)			(17.4)
Customer funds			264			(44.2)			(44.2)									31.0			31.0
Customer deposits 3			264			(44.2)			(44.2)									31.0			31.0
Mutual funds			—			—			—									—			—
Resources
Number of employees			1,322			7.7												24.7

1. Includes exchange differences.

2. Excluding reverse repos.

3. Excluding repos.

68						January - March 2024

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Group financial information

SOUTH AMERICA																		Q
EUR million
						/			Q4'23									/			Q1'23
Underlying income statement			Q1'24			%			% excl. FX									%			% excl. FX
Net interest income			4,185			30.5			32.6									32.3			31.4
Net fee income			1,182			15.3			16.8									1.3			0.6
Gains (losses) on financial transactions 1			207			54.0			56.3									(35.6)			(34.5)
Other operating income			(688)			—			—									178.1			178.3
Total income			4,887			12.9			14.6									11.0			10.3
Administrative expenses and amortizations			(1,829)			15.1			17.0									6.1			5.9
Net operating income			3,058			11.6			13.3									14.1			13.2
Net loan-loss provisions			(1,378)			(11.6)			(11.0)									11.9			10.0
Other gains (losses) and provisions			(371)			55.2			55.7									84.7			77.6
Profit before tax			1,308			39.0			43.3									4.9			5.5
Tax on profit			(420)			290.5			310.7									20.2			18.6
Profit from continuing operations			888			6.5			9.5									(1.1)			0.3
Net profit from discontinued operations			—			—			—									—			—
Consolidated profit			888			6.5			9.5									(1.1)			0.3
Non-controlling interests			(92)			(26.2)			(21.9)									(14.7)			(8.2)
Profit attributable to the parent			796			12.3			14.9									0.8			1.4
Balance sheet
Loans and advances to customers			153,698			0.3			3.0									0.9			5.3
Cash, central banks and credit institutions			64,615			(4.1)			(2.9)									9.3			10.0
Debt instruments			64,848			0.8			3.0									8.9			11.9
Other financial assets			22,375			7.6			13.8									5.6			20.2
Other asset accounts			19,629			2.0			3.7									3.9			5.4
Total assets			325,166			0.0			2.5									4.5			8.4
Customer deposits			149,997			(3.5)			(1.6)									4.6			7.4
Central banks and credit institutions			49,306			0.8			3.9									4.3			8.6
Marketable debt securities			39,333			(0.7)			2.2									1.7			6.1
Other financial liabilities			48,602			14.5			18.2									9.7			15.7
Other liabilities accounts			11,409			(10.6)			(8.0)									(3.3)			4.1
Total liabilities			298,648			(0.2)			2.3									4.6			8.6
Total equity			26,518			2.4			4.7									3.5			6.7
Memorandum items:
Gross loans and advances to customers 2			160,753			(0.1)			2.5									0.5			4.7
Customer funds			203,711			(1.0)			1.1									5.8			8.5
Customer deposits 3			133,045			(1.7)			0.4									2.6			5.8
Mutual funds			70,666			0.47			2.3									12.3			14.0
Ratios (%), operating means and customers
RoTE			14.8			1.6												(0.4)
Efficiency ratio			37.4			0.7												(1.7)
NPL ratio			5.37			(0.35)												(0.62)
NPL coverage ratio			80			2.0												4.0
Number of employees			80,243			(0.9)												0.6
Number of branches			3,213			(2.9)												(12.0)
Number of total customers (thousands)			74,597			2.1												5.6
Number of active customers (thousands)			38,236			1.9												—

1. Includes exchange differences.

2. Excluding reverse repos.

3. Excluding repos.

January - March 2024						69

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Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Group financial information

Brazil																		Q
EUR million
						/			Q4'23									/			Q1'23
Underlying income statement			Q1'24			%			% excl. FX									%			% excl. FX
Net interest income			2,630			5.1			5.8									24.9			20.5
Net fee income			846			(4.4)			(3.6)									3.6			—
Gains (losses) on financial transactions 1			36			(44.9)			(43.6)									(71.8)			(72.8)
Other operating income			(5)			—			—									—			—
Total income			3,507			0.6			1.3									14.7			10.6
Administrative expenses and amortizations			(1,156)			(2.3)			(1.6)									7.1			3.3
Net operating income			2,351			2.1			2.8									18.9			14.7
Net loan-loss provisions			(1,163)			(17.9)			(17.4)									12.5			8.5
Other gains (losses) and provisions			(211)			(11.7)			(10.9)									18.5			14.3
Profit before tax			977			50.8			52.5									27.6			23.1
Tax on profit			(359)			243.8			252.0									44.2			39.1
Profit from continuing operations			618			13.8			14.7									19.6			15.4
Net profit from discontinued operations			—			—			—									—			—
Consolidated profit			618			13.8			14.7									19.6			15.4
Non-controlling interests			(57)			15.9			17.1									19.3			15.1
Profit attributable to the parent			561			13.6			14.5									19.7			15.4
Balance sheet
Loans and advances to customers			98,540			2.2			2.9									9.0			7.0
Cash, central banks and credit institutions			52,031			(3.0)			(2.3)									16.7			14.6
Debt instruments			48,212			1.9			2.6									21.1			18.8
Other financial assets			7,638			(6.4)			(5.8)									20.3			18.1
Other asset accounts			14,409			(1.2)			(0.6)									2.8			0.9
Total assets			220,830			0.3			1.0									13.2			11.1
Customer deposits			106,083			(3.7)			(3.0)									15.2			13.1
Central banks and credit institutions			29,615			4.5			5.3									9.7			7.7
Marketable debt securities			28,174			0.7			1.4									5.5			3.6
Other financial liabilities			32,350			13.0			13.8									16.4			14.2
Other liabilities accounts			7,379			(7.0)			(6.4)									31.6			29.1
Total liabilities			203,601			0.3			1.0									13.6			11.5
Total equity			17,228			1.0			1.7									7.9			5.9
Memorandum items:
Gross loans and advances to customers 2			104,084			1.5			2.2									8.0			6.0
Customer funds			144,496			(0.4)			0.3									14.7			12.6
Customer deposits 3			89,207			(1.2)			(0.5)									13.3			11.2
Mutual funds			55,289			1.0			1.7									17.0			14.8
Ratios (%), operating means and customers
RoTE			15.4			1.7												1.3
Efficiency ratio			33.0			(1.0)												(2.4)
NPL ratio			6.06			(0.51)												(1.28)
NPL coverage ratio			87			2.1												7.3
Number of employees			57,035			(1.3)												0.6
Number of branches			2,492			(3.4)												(12.4)
Number of total customers (thousands)			64,411			2.6												5.7
Number of active customers (thousands)			31,136			2.2												(1.9)

1. Includes exchange differences.

2. Excluding reverse repos.

3. Excluding repos.

70						January - March 2024

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Group financial information

Chile																		Q
EUR million
						/			Q4'23									/			Q1'23
Underlying income statement			Q1'24			%			% excl. FX									%			% excl. FX
Net interest income			352			(15.1)			(7.9)									(5.1)			12.1
Net fee income			129			5.1			11.4									(16.0)			(0.8)
Gains (losses) on financial transactions 1			53			11.8			14.1									(35.2)			(23.4)
Other operating income			(6)			—			—									—			—
Total income			527			(10.9)			(4.2)									(13.0)			2.7
Administrative expenses and amortizations			(224)			(9.8)			(3.5)									(11.9)			4.1
Net operating income			303			(11.6)			(4.7)									(13.9)			1.7
Net loan-loss provisions			(125)			60.7			70.2									6.5			25.8
Other gains (losses) and provisions			(18)			—			—									—			—
Profit before tax			160			(43.1)			(38.3)									(34.7)			(22.8)
Tax on profit			(34)			(14.0)			(6.7)									4.2			23.2
Profit from continuing operations			126			(47.9)			(43.5)									(40.7)			(29.9)
Net profit from discontinued operations			—			—			—									—			—
Consolidated profit			126			(47.9)			(43.5)									(40.7)			(29.9)
Non-controlling interests			(35)			(53.8)			(49.7)									(42.9)			(32.6)
Profit attributable to the parent			90			(45.2)			(40.7)									(39.8)			(28.9)
Balance sheet
Loans and advances to customers			39,171			(8.1)			1.0									(15.4)			4.2
Cash, central banks and credit institutions			6,203			(2.7)			6.9									(16.2)			3.2
Debt instruments			12,153			(8.4)			0.6									(6.9)			14.7
Other financial assets			14,162			16.5			27.9									(2.2)			20.5
Other asset accounts			2,896			5.5			15.9									(2.0)			20.7
Total assets			74,585			(3.3)			6.2									(11.4)			9.1
Customer deposits			27,843			(5.9)			3.4									(12.2)			8.1
Central banks and credit institutions			13,704			(7.5)			1.7									(7.4)			14.1
Marketable debt securities			10,185			(5.5)			3.8									(9.5)			11.5
Other financial liabilities			14,869			17.8			29.4									(2.3)			20.3
Other liabilities accounts			2,793			(25.2)			(17.8)									(45.7)			(33.2)
Total liabilities			69,393			(3.0)			6.6									(11.2)			9.4
Total equity			5,193			(8.1)			1.0									(14.1)			5.8
Memorandum items:
Gross loans and advances to customers 2			40,301			(8.0)			1.0									(15.4)			4.2
Customer funds			38,035			(5.1)			4.2									(8.3)			13.0
Customer deposits 3			27,768			(5.4)			4.0									(11.6)			8.9
Mutual funds			10,267			(4.6)			4.8									2.0			25.6
Ratios (%), operating means and customers
RoTE			9.7			(7.3)												(4.9)
Efficiency ratio			42.5			0.5												0.6
NPL ratio			4.95			(0.05)												0.20
NPL coverage ratio			54			1.5												(5.0)
Number of employees			9,740			(2.1)												(3.7)
Number of branches			245			(1.2)												(10.9)
Number of total customers (thousands)			3,964			(2.2)												6.6
Number of active customers (thousands)			2,434			1.5												11.9

1. Includes exchange differences.

2. Excluding reverse repos.

3. Excluding repos.

January - March 2024						71

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Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Group financial information

Argentina
EUR million
									/ Q4'23									/ Q1'23
Underlying income statement			Q1'24			Q4'23			%									%
Net interest income			1,025			112			814.0									92.7
Net fee income			131			(50)			—									(4.2)
Gains (losses) on financial transactions 1			76			(15)			—									(12.4)
Other operating income			(677)			(74)			810.9									166.3
Total income			555			(27)			—									10.8
Administrative expenses and amortizations			(286)			6			—									14.4
Net operating income			270			(21)			—									7.3
Net loan-loss provisions			(35)			(7)			410.5									(18.5)
Other gains (losses) and provisions			(131)			(10)			—									336.1
Profit before tax			104			(39)			—									(41.7)
Tax on profit			(3)			19			—									(93.6)
Profit from continuing operations			102			(19)			—									(27.2)
Net profit from discontinued operations			—			—			—									—
Consolidated profit			102			(19)			—									(27.2)
Non-controlling interests			0			(1)			(76.3)									(10.3)
Profit attributable to the parent			101			(20)			—									(27.2)
Balance sheet
Loans and advances to customers			5,229			3,767			38.8									(9.3)
Cash, central banks and credit institutions			3,829			4,548			(15.8)									(11.9)
Debt instruments			1,754			1,368			28.2									(59.0)
Other financial assets			49			11			361.0									(24.1)
Other asset accounts			1,121			776			44.4									19.2
Total assets			11,982			10,470			14.4									(22.2)
Customer deposits			6,346			6,478			(2.0)									(41.5)
Central banks and credit institutions			1,666			1,271			31.2									86.2
Marketable debt securities			189			148			27.3									27.0
Other financial liabilities			837			638			31.1									(7.6)
Other liabilities accounts			579			455			27.2									19.3
Total liabilities			9,617			8,990			7.0									(27.6)
Total equity			2,364			1,479			59.8									11.4
Memorandum items:
Gross loans and advances to customers 2			5,357			3,878			38.1									(10.0)
Customer funds			10,392			10,288			1.0									(32.7)
Customer deposits 3			6,346			6,478			(2.0)									(41.3)
Mutual funds			4,046			3,810			6.2									(12.7)
Ratios (%), operating means and customers
RoTE			20.5						(60.8)									(9.4)
Efficiency ratio			51.4						29.6									1.6
NPL ratio			1.84						(0.15)									(0.24)
NPL coverage ratio			147						(18.4)									(22.0)
Number of employees			8,360						(1.1)									0.71
Number of branches			318						(1.2)									(16.75)
Number of total customers (thousands)			4,821						1.0									8.44
Number of active customers (thousands)			3,576						0.4									13.25

1. Includes exchange differences.

2. Excluding reverse repos.

3. Excluding repos.

72						January - March 2024

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

Group financial information

Other South America
EUR million
						/			Q4'23									/			Q1'23
Underlying income statement			Q1'24			%			% excl. FX									%			% excl. FX
Net interest income			178			1.1			0.8									15.2			13.9
Net fee income			75			12.2			10.7									27.4			23.9
Gains (losses) on financial transactions 1			44			14.4			13.1									54.9			44.3
Other operating income			—			—			—									—			—
Total income			297			6.9			6.2									24.3			21.4
Administrative expenses and amortizations			(163)			0.5			—									17.2			14.4
Net operating income			134			15.7			14.8									34.1			31.3
Net loan-loss provisions			(55)			(5.4)			(6.1)									45.2			43.4
Other gains (losses) and provisions			(11)			99.8			97.4									281.8			286.7
Profit before tax			68			30.6			29.5									14.8			11.5
Tax on profit			(24)			—			—									(15.2)			(16.8)
Profit from continuing operations			43			(37.4)			(37.6)									43.6			38.1
Net profit from discontinued operations			—			—			—									—			—
Consolidated profit			43			(37.4)			(37.6)									43.6			38.1
Non-controlling interests			0			—			—									—			—
Profit attributable to the parent			43			(38.6)			(38.7)									37.5			32.4
Balance sheet
Loans and advances to customers			10,758			2.8			(1.2)									9.2			1.7
Cash, central banks and credit institutions			2,552			(11.1)			(13.8)									(8.6)			(14.1)
Debt instruments			2,729			14.4			8.6									13.8			7.8
Other financial assets			527			13.2			11.1									76.5			61.8
Other asset accounts			1,202			5.9			3.7									22.5			19.5
Total assets			17,769			2.6			(1.3)									8.9			2.1
Customer deposits			9,725			5.4			0.6									11.4			5.3
Central banks and credit institutions			4,321			(3.7)			(5.6)									(5.8)			(13.9)
Marketable debt securities			786			11.7			5.6									38.5			33.5
Other financial liabilities			547			(0.6)			(3.1)									38.2			28.8
Other liabilities accounts			658			2.6			(1.7)									17.8			13.2
Total liabilities			16,036			2.7			(1.1)									8.1			1.2
Total equity			1,733			1.4			(2.5)									16.7			11.1
Memorandum items:
Gross loans and advances to customers 2			11,011			2.9			(1.1)									9.7			2.2
Customer funds			10,788			5.3			0.4									11.1			5.1
Customer deposits 3			9,725			5.4			0.6									11.4			5.3
Mutual funds			1,064			4.7			(1.6)									8.1			3.9
Resources
Number of employees			5,108			6.0												10.2

1. Includes exchange differences.

2. Excluding reverse repos.

3. Excluding repos.

January - March 2024						73

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Financial information by segment

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Appendix

Index

APMs

Alternative performance measures (APMs)

In addition to the financial information prepared under IFRS, this consolidated directors’ report contains financial measures that constitute alternative performance measures (APMs) to comply with the guidelines on alternative performance measures issued by the European Securities and Markets Authority on 5 October 2015 and non-IFRS measures.

The financial measures contained in this consolidated directors’ report that qualify as APMs and non-IFRS measures have been calculated using the financial information from Santander but are not defined or detailed in the applicable financial information framework or under IFRS and therefore have neither been audited nor are susceptible to being fully audited.

We use these APMs and non-IFRS measures when planning, monitoring and evaluating our performance. We consider these APMs and non-IFRS financial measures to be useful metrics for management and investors to facilitate operating performance comparisons from period to period. While we believe that these APMs and non-IFRS financial measures are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant as a substitute of IFRS measures. In addition, the way in which Santander defines and calculates these

APMs and non-IFRS measures may differ from the calculations by other companies with similar measures and, therefore, may not be comparable.

The APMs and non-IFRS measures we use in this document can be categorized as follows:

Underlying results

In addition to IFRS results measures, we present some results measures which are non-IFRS and which we refer to as underlying measures. These measures allow in our view a better year-on-year comparability given that they exclude items outside the ordinary performance of our business (e.g. capital gains, write-downs, impairment of goodwill) or certain line items have been reclassified in the underlying ("adjusted") income statement, as their impact on profit is zero, to facilitate comparisons with prior quarters and better understand the trends in the business.

In addition, in the section "Financial information by segment", relative to the primary and secondary segments, results are only presented on an underlying basis in accordance with IFRS 8, and reconciled on an aggregate basis to our IFRS consolidated results to the consolidated financial statements, which are set out below.

Reconciliation of underlying results to statutory results
EUR million
			January-March 2024
			Statutory results			Adjustments			Underlying results
Net interest income			11,983			—			11,983
Net fee income			3,240			—			3,240
Gains (losses) on financial transactions 1			623			—			623
Other operating income			(801)			335			(466)
Total income			15,045			335			15,380
Administrative expenses and amortizations			(6,547)			—			(6,547)
Net operating income			8,498			335			8,833
Net loan-loss provisions			(3,125)			—			(3,125)
Other gains (losses) and provisions			(790)			(335)			(1,125)
Profit before tax			4,583			—			4,583
Tax on profit			(1,468)			—			(1,468)
Profit from continuing operations			3,115			—			3,115
Net profit from discontinued operations			—			—			—
Consolidated profit			3,115			—			3,115
Non-controlling interests			(263)			—			(263)
Profit attributable to the parent			2,852			—			2,852

1. Includes exchange differences.

Explanation of adjustments:
			Temporary levy on revenue earned in Spain in the first quarter, totalling EUR 335 million, which was moved from total income to other gains (losses) and provisions considering the temporary nature of the levy. If we eliminate its impact, attributable profit would have been EUR 3,187 million.

74						January - March 2024

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Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

APMs

Reconciliation of underlying results to statutory results
EUR million
			January-March 2023
			Statutory results			Adjustments			Underlying results
Net interest income			10,396			(211)			10,185
Net fee income			3,043			—			3,043
Gains (losses) on financial transactions 1			715			—			715
Other operating income			(232)			224			(8)
Total income			13,922			13			13,935
Administrative expenses and amortizations			(6,145)			—			(6,145)
Net operating income			7,777			13			7,790
Net loan-loss provisions			(3,347)			474			(2,873)
Other gains (losses) and provisions			(598)			(224)			(822)
Profit before tax			3,832			263			4,095
Tax on profit			(967)			(263)			(1,230)
Profit from continuing operations			2,865			—			2,865
Net profit from discontinued operations			—			—			—
Consolidated profit			2,865			—			2,865
Non-controlling interests			(294)			—			(294)
Profit attributable to the parent			2,571			—			2,571

1. Includes exchange differences.

Explanation of adjustments:
1.			Temporary levy on revenue earned in Spain in the first quarter, totalling EUR 224 million, which was moved from total income to other gains (losses) and provisions, considering the temporary nature of the levy. If we eliminate its impact, attributable profit would have been EUR 2,795 million.
2.			Income in Brazil related to the reversal of tax liabilities amounted to EUR 261 million (EUR 211 million recorded in net interest income and a positive impact of EUR 50 million in tax) and provisions to strengthen the balance sheet, which net of tax was EUR 261 million (EUR 474 million recorded in net loan-loss provisions and a positive impact of EUR 213 million in tax).

January - March 2024						75

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Responsible banking Corporate governance Santander share

Appendix

Index

APMs

Profitability and efficiency ratios

The purpose of the profitability and efficiency ratios is to measure the ratio of profit to capital, to tangible capital, to assets and to risk- weighted assets, while the efficiency ratio measures how much general administrative expenses (personnel and other) and amortization costs are needed to generate revenue.

Additionally, goodwill adjustments have been removed from the RoTE numerator as, since they are not considered in the denominator, we believe this calculation is more correct.

Ratio

Formula

Relevance of the metric

RoE

Profit attributable to the parent (annualized)

This ratio measures the return that shareholders obtain on the funds invested in the bank and as such measures the company's ability to pay shareholders.

(Return on equity)

Average stockholders’ equity 1 (excl. minority interests)

RoTE

Profit attributable to the parent (annualized)2

This indicator is used to evaluate the profitability of the company as a percentage of its tangible equity. It's measured as the return that shareholders receive as a percentage of the funds invested in the entity less intangible assets.

(Return on tangible equity)

Average stockholders' equity 1 (excl. minority interests) - intangible assets

RoA

Consolidated profit (annualized)

This metric measures the profitability of a company as a percentage of its total assets. It is an indicator that reflects the efficiency of the company's total funds in generating profit.

(Return on assets)

Average total assets

RoRWA

Consolidated profit (annualized)

The return adjusted for risk is a derivative of the RoA metric. The difference is that RoRWA measures profit in relation to the bank's risk-weighted assets.

(Return on risk-weighted assets)

Average risk-weighted assets

Efficiency ratio

Operating expenses 3

One of the most commonly used indicators when comparing productivity of different financial entities. It measures the amount of funds used to generate the bank's total income.

Total income

1. Stockholders’ equity = Capital and Reserves + Accumulated other comprehensive income + Profit attributable to the parent + Dividends.

2. Excluding the adjustment to the valuation of goodwill.

3. Operating expenses = Administrative expenses + amortizations.

76						January - March 2024

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Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

APMs

Profitability and efficiency 1, 2			Q1'24			Q4'23						Q1'23
(EUR million and %)
RoE			11.8		%	12.4		%				11.4		%
Profit attributable to the parent (annualized)			11,409			11,730						10,284
Average stockholders' equity (excluding minority interests)			96,308			94,877						90,353
RoTE			14.9		%	15.6		%				14.4		%
Profit attributable to the parent (annualized)			11,409			11,730						10,284
(-) Goodwill impairment			—			-20						—
Profit attributable to the parent excluding goodwill impairment (annualized)			11,409			11,750						10,284
Average stockholders' equity (excluding minority interests)			96,308			94,877						90,353
(-) Average intangible assets			19,888			19,764						18,821
Average stockholders' equity (excl. minority interests) - intangible assets			76,420			75,114						71,532
RoA			0.69		%	0.71		%				0.66		%
Consolidated profit (annualized)			12,461			12,793						11,458
Average total assets			1,804,334			1,799,535						1,742,316
RoRWA			1.96		%	2.04		%				1.86		%
Consolidated profit (annualized)			12,461			12,793						11,458
Average risk-weighted assets			635,673			626,973						617,031
Efficiency ratio			42.6		%	44.4		%				44.1		%
Underlying operating expenses			6,547			6,464						6,145
Operating expenses			6,547			6,464						6,145
Adjustments to operating expenses for items outside ordinary course of businesses			—			—						—
Underlying total income			15,380			14,552						13,935
Total income			15,045			14,552						13,922
Adjustments to total income for items outside ordinary course of businesses			335			—						13
1.Averages included in the RoE, RoTE, RoA and RoRWA denominators are calculated using the monthly average over the period, which we believe should not differ materially from using daily balances.
2.The risk-weighted assets included in the denominator of the RoRWA metric are calculated in line with the criteria laid out in the CRR (Capital Requirements Regulation).

January - March 2024						77

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Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

APMs

Ratio

Formula

Relevance of the metric

Global business RoTE

Profit attributable to the parent excluding goodwill impairment (annualized)

This indicator is used to evaluate the profitability of the company as a percentage of its tangible equity. It's measured as the return that shareholders receive as a percentage of the funds invested in the entity less intangible assets.

Average stockholders' equity (excl. minority interests) - intangible assets 1

1.Allocated according to RWA consumption.

RoTE (EUR million and %)
			Q1'24									Q1'23
			%			Numerator			Denominator			%			Numerator			Denominator
Retail & Commercial Banking			15.6			6,010			38,404			13.3			4,783			35,836
Digital Consumer Bank			11.2			1,856			16,542			11.7			1,954			16,665
Corporate & Investment Banking			19.2			2,821			14,686			21.8			2,969			13,643
Wealth Management & Insurance			77.3			1,602			2,072			68.2			1,266			1,855
Payments			20.8			549			2,640			17.8			427			2,404
PagoNxt			-			-			-			-			-			-
Cards			35.5			707			1,993			35.5			648			1,931
Europe			15.7			6,163			39,167			12.8			4,755			37,167
Spain			18.0			3,088			17,132			11.1			1,866			16,830
United Kingdom			10.4			1,220			11,698			13.6			1,581			11,662
Portugal			31.1			1,212			3,893			20.9			719			3,440
Poland			20.1			853			4,238			19.5			666			3,410
North America			11.3			2,576			22,796			10.5			2,508			23,995
US			8.0			1,118			14,016			7.5			1,199			16,015
Mexico			18.8			1,645			8,771			18.0			1,435			7,985
South America			14.8			3,185			21,454			15.3			3,160			20,695
Brazil			15.4			2,245			14,575			14.1			1,876			13,299
Chile			9.7			362			3,719			14.7			601			4,101
Argentina			20.5			406			1,984			29.8			557			1,869
DCB Europe			8.9			915			10,296			9.9			975			9,864

Numerator: profit attributable to the parent excluding goodwill impairment (annualized).

Denominator: average stockholders' equity (excluding minority interests) - intangible assets, for global businesses allocated according to RWA consumption.

Efficiency ratio (EUR million and %)
			Q1'24									Q1'23
			%			Numerator			Denominator			%			Numerator			Denominator
Retail & Commercial Banking			41.1			3,304			8,048			45.0			3,111			6,919
Digital Consumer Bank			41.2			1,311			3,185			43.0			1,317			3,061
Corporate & Investment Banking			42.0			888			2,112			37.0			741			2,004
Wealth Management & Insurance			34.4			306			892			38.4			291			758
Payments			48.1			650			1,353			44.8			589			1,316
PagoNxt			107.5			304			283			113.9			278			244
Cards			32.3			346			1,070			29.1			312			1,072
Europe			39.7			2,305			5,809			41.9			2,167			5,171
Spain			34.2			1,032			3,016			39.8			1,014			2,547
United Kingdom			58.4			734			1,257			49.3			674			1,368
Portugal			22.9			134			584			32.6			132			405
Poland			27.5			229			834			27.1			197			729
North America			47.7			1,661			3,485			47.7			1,500			3,141
US			50.3			940			1,869			49.9			912			1,827
Mexico			41.4			665			1,608			41.6			540			1,300
South America			37.4			1,829			4,887			39.1			1,723			4,404
Brazil			33.0			1,156			3,507			35.3			1,080			3,057
Chile			42.5			224			527			41.9			254			606
Argentina			51.4			286			555			49.8			250			501
DCB Europe			47.1			665			1,410			49.1			659			1,343

Numerator: operating expenses.

Denominator: total income.

78						January - March 2024

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

APMs

Credit risk indicators

The credit risk indicators measure the quality of the credit portfolio and the percentage of non-performing loans covered by provisions.

Ratio

Formula

Relevance of the metric

NPL ratio (Non-performing loans)

Credit impaired loans and advances to customers, customer guarantees and customer commitments granted

The NPL ratio is an important variable regarding financial institutions' activity since it gives an indication of the level of risk the entities are exposed to. It calculates risks that are, in accounting terms, declared to be credit impaired as a percentage of the total outstanding amount of customer credit and contingent liabilities.

Total Risk 1

Total coverage ratio

Total allowances to cover impairment losses on loans and advances to customers, customer guarantees and customer commitments granted

The total coverage ratio is a fundamental metric in the financial sector. It reflects the level of provisions as a percentage of the credit impaired assets. Therefore it is a good indicator of the entity's solvency against customer defaults both present and future.

Credit impaired loans and advances to customers, customer guarantees and customer commitments granted

Cost of risk

Allowances for loan-loss provisions over the last 12 months

This ratio quantifies loan-loss provisions arising from credit risk over a defined period of time for a given loan portfolio. As such, it acts as an indicator of credit quality.

Average loans and advances to customers over the last 12 months

1. Total risk = Total loans and advances and guarantees to customers (including credit impaired assets) + contingent liabilities granted that are credit impaired.

Credit risk (I)			Mar-24			Dec-23						Mar-23
(EUR million and %)
NPL ratio			3.10		%	3.14		%				3.05		%
Credit impaired loans and advances to customers, customer guarantees and customer commitments granted			35,637			35,620						34,445
Gross loans and advances to customers registered under the headings “financial assets measured at amortized cost” and "financial assets designated at fair value through profit or loss" classified in stage 3 (OCI), excluding POCI (Purchased or Originated Credit Impaired)			33,885			33,821						32,353
POCI exposure (Purchased or Originated Credit Impaired) that is additionally impaired			262			273						301
Customer guarantees and customer commitments granted classified in stage 3			1,481			1,517						1,783
Doubtful exposure of loans and advances to customers at fair value through profit or loss			9			9						8
Total risk			1,150,459			1,133,898						1,128,501
Impaired and non-impaired gross loans and advances to customers			1,072,377			1,059,135						1,063,996
Impaired and non-impaired customer guarantees and customer commitments granted			78,082			74,763						64,505

January - March 2024						79

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Appendix

Index

APMs

Credit risk (II)			Mar-24			Dec-23						Mar-23
(EUR million and %)
Total coverage ratio			66		%	66		%				68		%
Total allowances to cover impairment losses on loans and advances to customers, customer guarantees and customer commitments granted			23,542			23,490						23,388
Total allowances to cover impairment losses on loans and advances to customers measured at amortized cost and designated at fair value through OCI			22,844			22,788						22,608
Total allowances to cover impairment losses on customer guarantees and customer commitments granted			698			702						780
Credit impaired loans and advances to customers, customer guarantees and customer commitments granted			35,637			35,620						34,445
Gross loans and advances to customers registered under the headings “financial assets measured at amortized cost” and "financial assets designated at fair value through profit or loss" classified in stage 3 (OCI), excluding POCI (Purchased or Originated Credit Impaired)			33,885			33,821						32,353
POCI exposure (Purchased or Originated Credit Impaired) that is additionally impaired			262			273						301
Customer guarantees and customer commitments granted classified in stage 3			1,481			1,517						1,783
Doubtful exposure of loans and advances to customers at fair value through profit or loss			9			9						8
Cost of risk			1.20		%	1.18		%				1.05		%
Underlying allowances for loan-loss provisions over the last 12 months			12,710			12,458						11,281
Allowances for loan-loss provisions over the last 12 months			12,710			12,458						11,755
Adjustments to loan-loss provisions for items outside ordinary course of businesses												-474
Average loans and advances to customers over the last 12 months			1,060,024			1,059,566						1,070,927

NPL ratio
(EUR million and %)
			Q1'24									Q1'23
			%			Numerator			Denominator			%			Numerator			Denominator
Retail & Commercial Banking			3.24			21,250			655,571			3.19			21,053			659,555
Digital Consumer Bank			4.86			10,114			208,000			4.04			8,017			198,265
Corporate & Investment Banking			1.14			2,660			233,562			1.42			3,120			220,283
Wealth Management & Insurance			0.64			150			23,489			0.83			191			22,861
Payments			4.85			1,164			24,014			4.98			1,099			22,091
PagoNxt			-			-			-			-			-			-
Cards			4.98			1,124			22,571			4.98			1,065			21,161
Europe			2.32			14,781			636,648			2.35			14,813			630,553
Spain			3.00			8,549			284,897			3.19			9,093			285,049
United Kingdom			1.48			3,712			250,765			1.27			3,210			253,513
Portugal			2.63			1,060			40,329			3.05			1,251			41,029
Poland			3.57			1,432			40,166			3.66			1,247			34,054
North America			4.07			7,942			195,011			2.95			5,669			192,181
US			4.60			6,394			139,022			3.13			4,511			144,038
Mexico			2.74			1,535			55,945			2.39			1,147			48,091
South America			5.37			9,552			177,846			5.99			10,397			173,449
Brazil			6.06			7,041			116,231			7.34			7,680			104,680
Chile			4.95			2,121			42,828			4.75			2,397			50,465
Argentina			1.84			99			5,374			2.08			125			6,014
DCB Europe			2.27			3,063			135,130			2.05			2,601			126,872

Numerator: credit impaired loans and advances to customers, customer guarantees and customer commitments granted.

Denominator: total risk.

80						January - March 2024

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Key consolidated data Business model

Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

APMs

NPL coverage ratio
(EUR million and %)
			Q1'24									Q1'23
			%			Numerator			Denominator			%			Numerator			Denominator
Retail & Commercial Banking			60.02			12,755			21,250			62.68			13,197			21,053
Digital Consumer Bank			76.08			7,694			10,114			91.19			7,310			8,017
Corporate & Investment Banking			46.24			1,230			2,660			35.32			1,102			3,120
Wealth Management & Insurance			61.63			92			150			62.26			119			191
Payments			144.84			1,685			1,164			143.56			1,578			1,099
PagoNxt			-			-			-			-			-			-
Cards			147.48			1,657			1,124			147.48			1,545			1,065
Europe			49.09			7,256			14,781			51.04			7,560			14,813
Spain			49.81			4,258			8,549			49.89			4,536			9,093
United Kingdom			28.29			1,050			3,712			33.11			1,063			3,210
Portugal			80.92			857			1,060			80.27			1,004			1,251
Poland			74.90			1,073			1,432			75.15			937			1,247
North America			74.15			5,889			7,942			94.88			5,379			5,669
US			67.78			4,334			6,394			91.47			4,126			4,511
Mexico			100.73			1,546			1,535			108.49			1,245			1,147
South America			80.35			7,676			9,552			76.32			7,935			10,397
Brazil			86.82			6,113			7,041			79.49			6,105			7,680
Chile			54.19			1,149			2,121			59.16			1,418			2,397
Argentina			147.32			146			99			169.36			211			125
DCB Europe			86.08			2,636			3,063			93.52			2,432			2,601

Numerator: total allowances to cover impairment losses on loans and advances to customers. customer guarantees and customer commitments granted.

Denominator: credit impaired loans and advances to customers, customer guarantees and customer commitments granted.

Cost of risk
(EUR million and %)
			Q1'24									Q1'23
			%			Numerator			Denominator			%			Numerator			Denominator
Retail & Commercial Banking			1.03			6,551			636,649			0.92			6,154			668,097
Digital Consumer Bank			2.12			4,327			203,790			1.81			3,522			194,807
Corporate & Investment Banking			0.14			229			167,604			0.16			247			158,730
Wealth Management & Insurance			(0.05)			(12)			22,560			0.09			20			22,680
Payments			6.89			1,613			23,414			6.72			1,352			20,102
PagoNxt			-			-			-			-			-			-
Cards			7.10			1,591			22,412			6.89			1,303			18,918
Europe			0.41			2,375			579,957			0.42			2,524			607,772
Spain			0.59			1,439			244,734			0.62			1,641			263,457
United Kingdom			0.08			205			250,009			0.12			324			260,954
Portugal			0.19			71			38,125			0.06			23			40,158
Poland			1.95			653			33,440			1.71			528			30,771
North America			2.15			3,910			182,049			1.62			2,907			179,088
US			1.98			2,640			133,566			1.52			2,055			135,196
Mexico			2.63			1,266			48,160			1.98			844			42,641
South America			3.44			5,548			161,220			3.39			5,275			155,695
Brazil			4.79			4,830			100,792			4.84			4,599			94,925
Chile			0.85			372			43,616			0.95			421			44,324
Argentina			5.43			142			2,620			2.97			136			4,571
DCB Europe			0.67			875			130,791			0.48			589			121,862

Numerator: underlying allowances for loan-loss provisions over the last 12 months.

Denominator: average loans and advances to customers over the last 12 months.

January - March 2024						81

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Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

APMs

Other indicators

The market capitalization indicator provides information on the volume of tangible equity per share. The loan-to-deposit ratio (LTD) identifies the relationship between net customer loans and advances and customer deposits, assessing the proportion of loans and advances granted by the Group that are funded by customer deposits.

The Group also uses gross customer loan magnitudes excluding reverse repurchase agreements (repos) and customer deposits excluding repos. In order to analyse the evolution of the traditional commercial banking business of granting loans and capturing deposits, repos and reverse repos are excluded, as they are mainly treasury business products and highly volatile.

Ratio

Formula

Relevance of the metric

TNAV per share

Tangible book value 1

This is a very commonly used ratio used to measure the company's accounting value per share having deducted the intangible assets. It is useful in evaluating the amount each shareholder would receive if the company were to enter into liquidation and had to sell all the company's tangible assets.

(Tangible equity net asset value per share)

Number of shares excluding treasury stock

Price / tangible book value per share (X)

Share price

This is one of the most commonly used ratios by market participants for the valuation of listed companies both in absolute terms and relative to other entities. This ratio measures the relationship between the price paid for a company and its accounting equity value.

TNAV per share

LTD ratio

Net loans and advances to customers

This is an indicator of the bank's liquidity. It measures the total (net) loans and advances to customers as a percentage of customer deposits.

(Loan-to-deposit)

Customer deposits

Loans and advances (excl. reverse repos)

Gross loans and advances to customers excluding reverse repos

In order to aid analysis of the commercial banking activity, reverse repos are excluded as they are highly volatile treasury products.

Deposits (excl. repos)

Customer deposits excluding repos

In order to aid analysis of the commercial banking activity, repos are excluded as they are highly volatile treasury products.

PAT + After tax fees paid to SAN (in Wealth Management & Insurance)

Net profit + fees paid from Santander Asset Management and Santander Insurance to Santander, net of taxes, excluding Private Banking customers

Metric to assess Wealth Management & Insurance's total contribution to Grupo Santander profit.

1. Tangible book value = Stockholders' equity (excl. minority interests) - intangible assets.

82						January - March 2024

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Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

APMs

Others			Mar-24			Dec-23						Mar-23
(EUR million and %)
TNAV (tangible book value) per share			4.86			4.76						4.41
Tangible book value			76,346			75,552						71,683
Number of shares excl. treasury stock (million)			15,715			15,886						16,266
Price / Tangible book value per share (X)			0.93			0.79						0.78
Share price (euros)			4.522			3.780						3.426
TNAV (tangible book value) per share			4.86			4.76						4.41
Loan-to-deposit ratio			100		%	99		%				104		%
Net loans and advances to customers			1,049,533			1,036,349						1,041,388
Customer deposits			1,044,453			1,047,169						998,949
			Q1'24			Q4'23						Q1'23
PAT + After tax fees paid to SAN (in WM&I) (Constant EUR million)			838			781						720
Profit after tax			420			378						340
Net fee income net of tax			419			403						381

ESG indicators

Metric

Definition

Mar-24

Green finance raised and facilitated (EUR billion)

Nominal amount of project finance, financial advisory, project bonds, green bonds (DCM), export finance (ECA), mergers and acquisitions (M&A), and equity capital markets (ECM) transactions ranked by the SCFS panel and reported in the League Tables of Dealogic, Inframation News, TXF and Mergermarket since the beginning of the year.

3.2

Green finance raised and facilitated accumulated 2019-2025 (EUR billion)

Cumulative amount of green finance disbursed and made available since 2019.

118.5

Socially responsible investment assets under management (SRI AUM) (EUR billion)

Value corresponding to total volume of assets under management registered as article 8 - promoting ESG characteristics - and 9 - with explicit sustainability objectives - of the SFDR regulation (EU Reg. 2019/2088) except for illiquid investments in Private Banking which are reported in terms of committed capital. Includes assets managed by Santander Asset Management (SAM) in the EU and with equivalent criteria in countries where SFDR does not apply (mainly Latin America) and Third Party Funds.

72.8

Credit disbursed to microentrepreneurs (EUR million)

Total amount of credit disbursed during the year to low-income entrepreneurs with low access to banking service, or with difficulties in accessing credit, with the objective of creating and/or growing their businesses. Data include information on microfinance programmes in Brazil, Colombia, Mexico and Peru.

303.6

Support (investment) for education, employment and entrepreneurship (EUR million)

Total amount invested to support education, employment and entrepreneurship.

15.9

Support (investment) for education, employment and entrepreneurship accumulated 2023-2025 (EUR million)

Cumulative amount of investment in education, employability and entrepreneurship since 2023.

120.9

Support (investment) for other local initiatives (EUR million)

Total amount invested through local initiatives to promote childhood education, social welfare (especially among vulnerable groups), art and culture.

7

Financing volume of renewable electric vehicles (EUR billion)

Financing volume of vehicles powered exclusively by a rechargeable electric battery (no petrol engine).

1.6

Note: Not audited and not taxonomy.

January - March 2024						83

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Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

APMs

Local currency measures

We make use of certain financial measures in local currency to help in the assessment of our ongoing operating performance. These non-IFRS financial measures include the results of operations of our subsidiary banks located outside the eurozone, excluding the impact of foreign exchange. Because changes in foreign currency exchange rates do not have an operating impact on the results, we believe that evaluating their performance on a local currency basis provides an additional and meaningful assessment of performance to both management and the company’s investors.

The Group presents, at both the Group level as well as the business unit level, the real changes in the income statement as well as the changes excluding the exchange rate effect ("excluding FX" or "constant euros"), as it considers the latter facilitates analysis, since it enables businesses movements to be identified without taking into account the impact of converting each local currency into euros.

Said variations, excluding the impact of exchange rate movements, are calculated by converting income statement lines for the different business units comprising the Group into our presentation currency, the euro, applying the average exchange rate for the first quarter of 2024 to all periods contemplated in the analysis. We use this method for all countries with the exception of Argentina, where we use the exchange rate on the last working day of each period presented, given it is a hyperinflationary economy, to mitigate the distortions caused by the hyperinflation.

The Group presents, at both the Group level as well as the business unit level, the changes in euros in the balance sheet as well as the changes excluding the exchange rate effect for loans and advances to customers excluding reverse repurchase agreements (repos) and customer funds (which comprise deposits and mutual funds) excluding repos. As with the income statement, the reason is to facilitate analysis by isolating the changes in the balance sheet that are not caused by converting each local currency into euros.

These changes excluding the impact of exchange rate movements are calculated by converting loans and advances to customers excluding reverse repos and customer funds excluding repos, into our presentation currency, the euro, applying the closing exchange rate on the last working day of March 2024 to all periods contemplated in the analysis. We use this method to calculate the variations in loans and advances to customers excluding reverse repos and customer funds excluding repos for all countries with the exception of Argentina, where we use the exchange rate on the last working day of each period presented, given it is a hyperinflationary economy, to mitigate the distortions caused by the hyperinflation.

The average and period-end exchange rates for the main currencies in which the Group operates are set out in the table below.

Exchange rates: 1 euro / currency parity
			Average (income statement)									Period-end (balance sheet)
			Q1'24			Q1'23						Mar-24			Dec-23			Mar-23
US dollar			1.085			1.073						1.080			1.105			1.086
Pound sterling			0.856			0.883						0.855			0.868			0.878
Brazilian real			5.374			5.572						5.402			5.365			5.504
Mexican peso			18.443			20.019						17.939			18.691			19.606
Chilean peso			1,027.842			870.048						1,060.256			965.192			860.680
Argentine peso			905.016			206.220						925.934			893.635			226.979
Polish zloty			4.333			4.709						4.307			4.343			4.677

84						January - March 2024

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Group financial information

Financial information by segment

Responsible banking Corporate governance Santander share

Appendix

Index

APMs

Impact of inflation rate on the variations of operating expenses

Santander presents, for both the Group and the business units included in the primary and secondary segments: i) the changes in operating expenses in euros, ii) the changes excluding the exchange rate effect with the exception of Argentina which is calculated as described above in "Local currency measures", and iii) the changes excluding the exchange rate effect minus the effect of average inflation over the last twelve months except for Argentina as cost growth in euros should already largely reflect the effect of hyperinflation on exchange rates. The reason is that the two latter facilitate analysis for management purposes.

Inflation is calculated as the arithmetic average of the last twelve months for each country and, for the regions, as the weighted average of each country comprising the region's inflation rate, weighted by each country's operating expenses in the region. For South America, we exclude the impact of inflation in Argentina from the calculation of the region's average inflation as cost growth in euros should already largely reflect the effect of hyperinflation on exchange rates.

The table below shows the average inflation rates calculated as indicated.

			% change YoY operating expenses
									Average inflation last 12 months
			Retail & Commercial Banking						4.4
			Digital Consumer Bank						3.9
			Corporate & Investment Banking						3.8
			Wealth Management & Insurance						3.9
			Payments						4.3
			Europe						4.4
			Spain						3.1
			United Kingdom						5.7
			Portugal						2.9
			Poland						8.0
			North America						4.0
			US						3.5
			Mexico						4.8
			South America1						4.0
			Brazil						4.3
			Chile						5.7
			DCB Europe						4.1
			Total Group						4.2

1. Excluding the impact of inflation in Argentina.

January - March 2024						85

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Condensed consolidated financial statements

Condensed consolidated financial statements

•CONSOLIDATED BALANCE SHEET

•CONSOLIDATED INCOME STATEMENT

NOTE:			The following financial information for the first three months of 2024 and 2023 (attached herewith) corresponds to the condensed consolidated financial statements prepared in accordance with the International Financial Reporting Standards.

Interim condensed consolidated balance sheet
EUR million
ASSETS			Mar-24			Dec-23			Mar-23
Cash, cash balances at central banks and other deposits on demand			174,161			220,342			203,359
Financial assets held for trading			209,589			176,921			172,889
Non-trading financial assets mandatorily at fair value through profit or loss			6,233			5,910			5,670
Financial assets designated at fair value through profit or loss			8,686			9,773			9,741
Financial assets at fair value through other comprehensive income			84,183			83,308			84,214
Financial assets at amortised cost			1,207,699			1,191,403			1,165,387
Hedging derivatives			5,388			5,297			6,969
Changes in the fair value of hedged items in portfolio hedges of interest risk			(1,203)			(788)			(3,038)
Investments			7,685			7,646			7,668
Joint ventures entities			1,985			1,964			2,011
Associated entities			5,700			5,682			5,657
Assets under reinsurance contracts			228			237			260
Tangible assets			34,229			33,882			33,989
Property, plant and equipment			33,263			32,926			32,940
For own-use			13,323			13,408			13,617
Leased out under an operating lease			19,940			19,518			19,323
Investment property			966			956			1,049
Of which : Leased out under an operating lease			831			851			894
Intangible assets			19,910			19,871			18,880
Goodwill			14,028			14,017			13,870
Other intangible assets			5,882			5,854			5,010
Tax assets			30,042			31,390			29,708
Current tax assets			9,227			10,623			9,147
Deferred tax assets			20,815			20,767			20,561
Other assets			10,191			8,856			10,411
Insurance contracts linked to pensions			90			93			101
Inventories			7			7			12
Other			10,094			8,756			10,298
Non-current assets held for sale			2,985			3,014			3,295
TOTAL ASSETS			1,800,006			1,797,062			1,749,402

86						January - March 2024

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Interim condensed consolidated balance sheet
EUR million
LIABILITIES			Mar-24			Dec-23			Mar-23
Financial liabilities held for trading			130,466			122,270			123,716
Financial liabilities designated at fair value through profit or loss			38,583			40,367			37,096
Financial liabilities at amortized cost			1,465,644			1,468,703			1,429,788
Hedging derivatives			6,620			7,656			9,363
Changes in the fair value of hedged items in portfolio hedges of interest rate risk			(2)			55			(139)
Liabilities under insurance or reinsurance contracts			17,738			17,799			17,274
Provisions			8,387			8,441			8,089
Pensions and other post-retirement obligations			2,131			2,225			2,198
Other long term employee benefits			818			880			898
Taxes and other legal contingencies			2,765			2,715			2,226
Contingent liabilities and commitments			698			702			780
Other provisions			1,975			1,919			1,987
Tax liabilities			10,070			9,932			9,528
Current tax liabilities			3,909			3,846			2,675
Deferred tax liabilities			6,161			6,086			6,853
Other liabilities			17,475			17,598			15,197
Liabilities associated with non-current assets held for sale			—			—			—
TOTAL LIABILITIES			1,694,981			1,692,821			1,649,912
EQUITY
Shareholders' equity			130,876			130,443			125,061
Capital			7,913			8,092			8,227
Called up paid capital			7,913			8,092			8,227
Unpaid capital which has been called up			—			—			—
Share premium			43,063			44,373			45,294
Equity instruments issued other than capital			728			720			697
Equity component of the compound financial instrument			—			—			—
Other equity instruments issued			728			720			697
Other equity			189			195			175
Accumulated retained earnings			82,339			74,114			74,115
Revaluation reserves			—			—			—
Other reserves			(5,774)			(5,751)			(5,383)
(-) Own shares			(434)			(1,078)			(635)
Profit attributable to shareholders of the parent			2,852			11,076			2,571
(-) Interim dividends			—			(1,298)			—
Other comprehensive income (loss)			(34,620)			(35,020)			(34,498)
Items not reclassified to profit or loss			(5,038)			(5,212)			(4,485)
Items that may be reclassified to profit or loss			(29,582)			(29,808)			(30,013)
Non-controlling interest			8,769			8,818			8,927
Other comprehensive income			(1,777)			(1,559)			(1,682)
Other items			10,546			10,377			10,609
TOTAL EQUITY			105,025			104,241			99,490
TOTAL LIABILITIES AND EQUITY			1,800,006			1,797,062			1,749,402
MEMORANDUM ITEMS: OFF BALANCE SHEET AMOUNTS
Loan commitments granted			291,805			279,589			278,586
Financial guarantees granted			15,884			15,435			13,132
Other commitments granted			121,909			113,273			98,418

January - March 2024						87

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Condensed consolidated financial statements

Interim condensed consolidated income statement
EUR million
			Q1'24			Q1'23
Interest income			29,243			23,889
Financial assets at fair value through other comprehensive income			1,845			1,788
Financial assets at amortized cost			21,374			18,132
Other interest income			6,024			3,969
Interest expense			(17,260)			(13,493)
Interest income/ (charges)			11,983			10,396
Dividend income			93			63
Income from companies accounted for using the equity method			123			126
Commission income			4,390			4,152
Commission expense			(1,150)			(1,109)
Gain or losses on financial assets and liabilities not measured at fair value through profit or loss, net			24			18
Financial assets at amortized cost			(21)			15
Other financial assets and liabilities			45			3
Gain or losses on financial assets and liabilities held for trading, net			364			802
Reclassification of financial assets at fair value through other comprehensive income			—			—
Reclassification of financial assets from amortized cost			—			—
Other gains (losses)			364			802
Gains or losses on non-trading financial assets and liabilities mandatorily at fair value through profit or loss			253			(13)
Reclassification of financial assets at fair value through other comprehensive income			—			—
Reclassification of financial assets from amortized cost			—			—
Other gains (losses)			253			(13)
Gain or losses on financial assets and liabilities measured at fair value through profit or loss, net			264			(266)
Gain or losses from hedge accounting, net			52			10
Exchange differences, net			(334)			164
Other operating income (*)			(121)			329
Other operating expenses			(896)			(759)
Income from insurance and reinsurance contracts			100			203
Expenses from insurance and reinsurance contracts			(100)			(194)
Total income			15,045			13,922
Administrative expenses			(5,719)			(5,356)
Staff costs			(3,594)			(3,245)
Other general and administrative expenses			(2,125)			(2,111)
Depreciation and amortization			(828)			(789)
Provisions or reversal of provisions, net			(633)			(642)
Impairment or reversal of impairment of financial assets not measured at fair value through profit or loss and net gains and losses from modifications			(3,134)			(3,301)
Financial assets at fair value through other comprehensive income			(9)			2
Financial assets at amortized cost			(3,125)			(3,303)
Impairment of investments in subsidiaries, joint ventures and associates, net			—			—
Impairment on non-financial assets, net			(129)			(22)
Tangible assets			(122)			(16)
Intangible assets			(4)			(1)
Others			(3)			(5)
Gain or losses on non-financial assets and investments, net			2			26
Negative goodwill recognized in results			—			—
Gains or losses on non-current assets held for sale not classified as discontinued operations			(21)			(6)
Operating profit/(loss) before tax			4,583			3,832
Tax expense or income from continuing operations			(1,468)			(967)
Profit/(loss) for the period from continuing operations			3,115			2,865
Profit/( loss) after tax from discontinued operations			—			—
Profit/(loss) for the period			3,115			2,865
Profit attributable to non-controlling interests			263			294
Profit/(loss) attributable to the parent			2,852			2,571
Earnings/(losses) per share
Basic			0.17			0.15
Diluted			0.17			0.15

(*) Includes -EUR 672 million at 31 March 2024 (-EUR 248 million at 31 March 2023) derived from the net monetary loss generated in Argentina as a result of the application of IAS 29 Financial reporting in hyperinflationary economies.

88						January - March 2024

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Glossary

Glossary

•Active customer: Those customers who comply with the minimum balance, income and/or transactionality requirements as defined according to the business area

•ADR: American Depositary Receipt

•APM: Alternative Performance Measures

•A2A: account-to-account payment

•AuMs: Assets under management

•bn: Billion

•BNPL: Buy now, pay later

•bps: basis points

•CDI: CREST Depository Interest

•CET1: Common Equity Tier 1

•CF: Corporate Finance

•CHF: Swiss francs

•CIB: Corporate & Investment Banking

•CNMV: Spanish National Securities Market Commission (Comisión Nacional del Mercado de Valores)

•Consumer: Digital Consumer Bank

•Costs in real terms: variations excluding the effect of average inflation over the last twelve months

•DCBE: Digital Consumer Bank Europe

•Digital customers: Every consumer of a commercial bank’s services who has logged on to their personal online banking and/or mobile banking in the last 30 days

•ECB: European Central Bank

•EPS: Earnings per share

•ESG: Environmental, Social and Governance

•ESMA: European Securities and Markets Authority

•Fed: Federal Reserve

•Financial inclusion: Number of people who are unbanked, underbanked, in financial difficulty, with difficulties in accessing credit who, through the Group's products and services, are able to access the financial system or receive tailored finance. Financially underserved groups are defined as people who do not have a current account, or who have an account but obtained alternative (non-bank) financial services in the last 12 months. Beneficiaries of various programmes are included in the quantification process only once in the entire period. Only new empowered people are counted, taking as a base year those existing since 2019. 

•FX: Foreign Exchange

•GB: Global Banking

•GDF: Global Debt Financing

•GDP: Gross Domestic Product

•GTB: Global Transaction Banking

•IA: Artificial intelligence

•IFRS 9: International Financial Reporting Standard 9, regarding financial instruments

•IFRS 17: International Financial Reporting Standard 9, regarding insurance contracts

•IT: Information technology

•LCR: Liquidity Coverage Ratio

•LLPs: Loan-loss provisions

•MDA: Maximum Distributable Amount

•mn: Million

•MREL: Minimum Requirement for own funds and eligible liabilities )

•NII: Net Interest Income

•NPS: Net Promoter Score

•ODS: Open Digital Services

•PBT: Profit before tax

•pp: percentage points

•QoQ: Quarter-on-quarter

•P2R: Pillar 2 requirement

•Payments: PagoNxt (Getnet, Ebury y PagoNxt Payments) y Cards

•PB: Private Banking

•Retail: Retail & Commercial Banking

•Repos: Repurchase agreements

•RoA: Return on assets

•RoE: Return on equity

•RoRWA: Return on risk-weighted assets

•RoTE: Return on tangible equity

•RWAs: Risk-weighted assets

•SAM: Santander Asset Management

•SBNA: Santander Bank N.A.

•SCIB: Santander Corporate & Investment Banking

•SC USA: Santander Consumer USA

•SEC: Securities and Exchanges Commission

•SHUSA: Santander Holdings USA, Inc.

•SMEs: Small and medium enterprises

•TLAC: The total loss-absorbing capacity requirement which is required to be met under the CRD V package

•TNAV: Tangible net asset value

•TPV: Total payments volume

•VaR: Value at Risk

•Wealth: Wealth Management & Insurance

•YoY: Year-on-year

January - March 2024						89

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Important Information

Important information

Non-IFRS and alternative performance measures

This document 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 the 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 document 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 document 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.

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 document 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

90						January - March 2024

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Important Information

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 document, 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 document 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 document should be taken as a profit and loss forecast.

Third Party Information

In this document, Santander relies on and refers to certain information and statistics obtained from publicly-available information and third-party sources, which it believes to be reliable. Neither Santander nor its directors, officers and employees have independently verified the accuracy or completeness of any such publicly-available and third-party information, make any representation or warranty as to the quality, fitness for a particular purpose, non-infringement, accuracy or completeness of such information or undertake any obligation to update such information after the date of this document. In no event shall Santander be liable for any use by any party of, for any decision made or action taken by any party in reliance upon, or for inaccuracies or errors in, or omission from, such publicly-available and third-party information contained herein. Any sources of publicly-available information and third-party information referred or contained herein retain all rights with respect to such information and use of such information herein shall not be deemed to grant a license to any third party.

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.

This document is a translation of a document originally issued in Spanish. Should there be any discrepancies between the English and the Spanish versions, only the original Spanish version should be binding.

January - March 2024						91

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

			Banco Santander, S.A.
Date:    30 April 2024			By:			/s/ José García Cantera
			Name:			José García Cantera
			Title:			Chief Financial Officer