Banco Santander (SAN) Investor presentation summary

Macroeconomic environment

• Global GDP growth for 2026 is forecast at 3.3%, with mixed regional performance and ongoing uncertainty from geopolitical and trade tensions.

• Spain's economy is expected to grow moderately, driven by domestic demand, with inflation and unemployment rates declining.

• Credit to the private sector is recovering, with loans up 3.1% YoY in Nov-25 and deposits up 5.0% YoY in Dec-25.

• Non-performing loan (NPL) ratios continue to decline, reflecting resilient economic performance and proactive risk management.

• Housing market remains tight, with a stock deficit supporting price growth and stable new housing activity.

Business model and strategy

• Focus on a digital bank with branches, leveraging global and local scale across five business lines: Retail, Consumer, CIB, Wealth, and Payments.

• Diversified revenue streams: Retail (50%), Payments (21%), CIB (13%), Wealth (9%), Consumer (7%).

• Achieved record profit in 2025, with total revenue of €62.4bn, cost efficiency at a 15-year best, and ROTE at 16.3%.

• Maintained solid credit quality, with group NPL and cost of risk ratios stable or improving across most segments and geographies.

Santander España performance

• Loans and deposits both grew 5% YoY in 2025; mutual funds up 15%.

• Attributable profit rose 14% YoY, supported by higher net interest income, increased fees, and improved credit quality.

• Efficiency ratio at 35.7% and ROTE post-AT1 at 24.3%.