Banco Santander, S.A. Q3 FY2024 earnings call

• Q3 was a record quarter with profit €3.3B (+12% YoY) and 9M profit €9.3B (+14% YoY). - Expenses grew below revenue and inflation, efficiency ratio improved 229 bps, RoTE 16.2%. - Balance sheet solid with strong capital ratio and credit quality. - ONE Transformation driving simplification, automation, global platform deployment; reduced product catalog by ~33%, 60% of products digitally available. - Retail focused on customer experience and global platform deployment; Consumer expanding leadership and deposit gathering; CIB building world-class business; Wealth growing through collaboration; Payments expanding market share.

Retail: Strong revenue growth with close to double-digit growth in NII and fees, especially in Americas; 2.6 million new customers in Q3. Consumer: Revenue growth from volumes, active asset repricing, and double-digit fee growth; deposits up 12% YoY; Openbank launched in US with ~€200M deposits and 7,000 clients in 4 weeks. CIB: Revenue in US rose 41% YoY, global markets institutional sales doubled in Europe and tripled in US, deepening client relationships. Wealth: Double-digit growth in private banking customers and fees, collaboration with other businesses, efficiency improved 210 basis points. Payments: PagoNxt EBITDA margin 23%, Getnet with strong ratios, payments hub processing 800M transactions year-to-date (5x more than prior year). Revenue contribution: NII and fees accounted for over 95% of total income.

• On track to exceed 2024 targets set in January. - 2025 profitability targets to be met via continued strategy execution. - Dividend per share +14%, cash dividend per share 39% higher in 2024. - Cost-to-income ratio expected ~42% in 2024, further improvement in 2025.

• Potential material impact from Santander U.K. ruling not expected to affect 2024 targets. - Regulatory impacts and Basel III implementation managed within targets. - Market volatility in Brazil affecting trading income.

Q: On NII and cost outlook.

A: NII sensitivity to rates managed via geographical and business diversification; cost efficiency from ONE Transformation with costs growing less than half of revenue growth.

Q: On Motor Finance business in U.K.

A: Impact not material to 2024 targets, ongoing monitoring.

Q: On capital generation and Basel III.

A: Capital ratio stable, Basel III impact managed with day one CET1 above 12% target.

Q: On Brazil loan growth and U.S. profitability.

A: Brazil loan growth via focus on profitability and mix change; U.S. business momentum with 41% YoY revenue growth in CIB and strong advisory services.