#1SANTANDER HOLDINGS USA, INC. Fixed Income Investor Presentation Second Quarter 2019 August 21, 2019 Santander#2Disclaimer 2 This presentation of Santander Holdings USA, Inc. ("SHUSA") contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the financial condition, results of operations, business plans and future performance of SHUSA. Words such as "may," "could," "should," "will," "believe," "expect," "anticipate," "estimate," "intend," "plan," "goal" or similar expressions are intended to indicate forward-looking statements. Although SHUSA believes that the expectations reflected in these forward-looking statements are reasonable as of the date on which the statements are made, these statements are not guarantees of future performance and involve risks and uncertainties based on various factors and assumptions, many of which are beyond SHUSA's control. Among the factors that could cause SHUSA's financial performance to differ materially from that suggested by forward-looking statements are: (1) the effects of regulation and/or policies of the Board of Governors of the Federal Reserve System (the "Federal Reserve"), the Federal Deposit Insurance Corporation (the "FDIC"), the Office of the Comptroller of the Currency (the "OCC") and the Consumer Financial Protection Bureau (the "CFPB"), and other changes in monetary and fiscal policies and regulations, including policies that affect market interest rates and money supply, as well as in the impact of changes in and interpretations of generally accepted accounting principles in the United States of America ("GAAP"), the failure to adhere to which could subject SHUSA to formal or informal regulatory compliance and enforcement actions and result in fines, penalties, restitution and other costs and expenses, changes in our business practices, and reputational harm; (2) the slowing or reversal of the current U.S. economic expansion and the strength of the U.S. economy in general and regional and local economies in which SHUSA conducts operations in particular, which may affect, among other things, the level of non-performing assets, charge-offs, and provisions for credit losses; (3) SHUSA's ability to manage credit risk that may increase to the extent our loans are concentrated by loan type, industry segment, borrower type or location of the borrower of collateral; (4) inflation, interest rate, market and monetary fluctuations, which may, among other things, reduce net interest margins, and impact funding sources and the ability to originate and distribute financial products in the primary and secondary markets; (5) Santander Consumer USA Inc.'s ("SC's") agreement with Fiat Chrysler Automobiles US LLC ("FCA") may not result in currently anticipated levels of growth, is subject to performance conditions that could result in termination of the agreement, and is also subject to an option giving FCA the right to acquire an equity participation in the Chrysler Capital portion of SC's business; (6) the pursuit of protectionist trade or other related policies, including tariffs by the U.S., its global trading partners, and/or other countries; (7) adverse movements and volatility in debt and equity capital markets and adverse changes in the securities markets, including those related to the financial condition of significant issuers in SHUSA's investment portfolio; (8) SHUSA's ability to grow revenue, manage expenses, attract and retain highly-skilled people and raise capital necessary to achieve its business goals and comply with regulatory requirements; (9) SHUSA's ability to effectively manage its capital and liquidity, including approval of its capital plans by its regulators and its ability to continue to receive dividends from its subsidiaries or other investments; (10) changes in credit ratings assigned to SHUSA or its subsidiaries; (11) the ability to manage risks inherent in our businesses, including through effective use of systems and controls, insurance, derivatives and capital management; (12) SHUSA's ability to timely develop competitive new products and services in a changing environment that are responsive to the needs of SHUSA's customers and are profitable to SHUSA, the success of our marketing efforts to customers, and the potential for new products and services to impose additional unexpected costs, losses or other liabilities not anticipated at their initiation, and expose SHUSA to increased operational risk; (13) competitors of SHUSA may have greater financial resources or lower costs, or be subject to different regulatory requirements than SHUSA, may innovate more effectively, or may develop products and technology that enable those competitors to compete more successfully than SHUSA and cause SHUSA to lose business or market share; (14) consumers and small businesses may decide not to use banks for their financial transactions, which could impact our net income; (15) changes in customer spending, investment or savings behavior; (16) loss of customer deposits that could increase our funding costs; (17) the ability of SHUSA and its third-party vendors to convert, maintain and upgrade, as necessary, SHUSA's data processing and other information technology ("IT") infrastructure on a timely and acceptable basis, within projected cost estimates and without significant disruption to our business; (18) SHUSA's ability to control operational risks, data security breach risks and outsourcing risks, and the possibility of errors in quantitative models SHUSA uses to manage its business, including as a result of cyber-attacks, technological failure, human error, fraud or malice, and the possibility that SHUSA's controls will prove insufficient, fail or be circumvented; Santander#33 Disclaimer (cont.) (19) the ability of certain European member countries to continue to service their debt and the risk that a weakened European economy could negatively affect U.S.- based financial institutions, counterparties with which SHUSA does business, as well as the stability of global financial markets, including economic instability and recessionary conditions in Europe and the eventual exit of the United Kingdom from the European Union; (20) changes to income tax laws and regulations and the outcome of ongoing tax audits by federal, state and local income tax authorities that may require SHUSA to pay additional taxes or recover fewer overpayments compared to what has been accrued or paid as of period-end; (21) the costs and effects of regulatory or judicial proceedings, including possible business restrictions resulting from such proceedings; and (22) adverse publicity and negative public opinion, whether specific to SHUSA or regarding other industry participants or industry-wide factors, or other reputational harm; and (23) acts of terrorism or domestic or foreign military conflicts; and acts of God, including natural disasters. Because this information is intended only to assist investors, it does not constitute investment advice or an offer to invest, and in making this presentation available, SHUSA gives no advice and makes no recommendation to buy, sell, or otherwise deal in shares or other securities of Banco Santander, S.A. ("Santander"), SHUSA, Santander Bank, N.A. ("Santander Bank" or "SBNA"), SC or any other securities or investments. It is not our intention to state, indicate, or imply in any manner that current or past results are indicative of future results or expectations. As with all investments, there are associated risks, and you could lose money investing. Prior to making any investment, a prospective investor should consult with its own investment, accounting, legal, and tax advisers to evaluate independently the risks, consequences, and suitability of that investment. No offering of securities shall be made in the United States except pursuant to registration under the U.S. Securities Act of 1933, as amended, or an exemption therefrom. In this presentation, we may sometimes refer to certain non-GAAP figures or financial ratios to help illustrate certain concepts. These ratios, each of which is defined in this document, if utilized, may include Pre-Tax Pre-Provision Income, the Tangible Common Equity to Tangible Assets Ratio, and the Texas Ratio. This information supplements our results as reported in accordance with GAAP and should not be viewed in isolation from, or as a substitute for, our GAAP results. We believe that this additional information and the reconciliations we provide may be useful to investors, analysts, regulators and others as they evaluate the impact of these items on our results for the periods presented due to the extent to which the items are indicative of our ongoing operations. Where applicable, we provide GAAP reconciliations for such additional information. The enhanced prudential standards mandated by Section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "DFA") (the "Final Rule") were enacted by the Federal Reserve System (the "Federal Reserve") to strengthen regulatory oversight of foreign banking organizations ("FBOs"). Under the Final Rule, FBOs with over $50 billion of U.S. non-branch assets, including Santander, were required to consolidate U.S. subsidiary activities under an intermediate holding company ("IHC"). Due to its U.S. non-branch total consolidated asset size, Santander is subject to the Final Rule. As a result of this rule, Santander transferred substantially all of its equity interests in U.S. bank and non-bank subsidiaries previously outside the Company to the Company, which became an IHC effective July 1, 2016. These subsidiaries included Santander BanCorp ("SBC"), Banco Santander International ("BSI"), Santander Investment Securities, Inc. ("SIS"), Santander Securities LLC ("SSLLC"), as well as several other subsidiaries. Effective July 2, 2018, Santander transferred Santander Asset Management, LLC ("SAM") to SHUSA. The contribution of SAM to the Company transferred approximately $5.4 million of assets, $1.0 million of liabilities, and $4.4 million of equity to SHUSA. Although SAM is an entity under common control, its results of operations, financial condition, and cash flows are immaterial to the historical financial results of SHUSA. As a result, SHUSA elected to report the results of SAM on a prospective basis beginning July 2, 2018. As a result of the consolidation of SAM SHUSA's net income is understated $0.6 million for the three month period ended June 30, 2018. This amount is immaterial to the overall presentation of the Company's financial statements for each of the periods presented. Santander#42Q 2019 Executive Summary¹ Earnings Balance Sheet • Liquidity and Funding • • 2Q19 net income of $407MM² vs. $360MM² for 2Q18 • 1H19 net income of $646MM² vs. $620MM² for 1H18 4 . SHUSA's balance sheet increased QoQ from $138.9BN to $143.9BN, primarily due to growth in commercial and industrial ("C&I") and auto loans at SBNA • SBNA originated $1.9BN of prime auto loans through the program with SC . • Loan growth at SBNA funded through deposits and FHLB³ advances SHUSA, on an unconsolidated basis, held $4.2BN in high-quality liquid assets ("HQLA”) SHUSA's LCR4 of 166% On June 7, 2019, SHUSA issued $1.0BN five-year debt at 3.50% In July 2019, SHUSA redeemed $0.76BN and issued $0.72BN floating rate private debt • CET15 ratio of 15.04% Capital • • SHUSA paid a regular dividend of $75MM to Santander SC repurchased $87MM of its stock, completing its 2019 program • • Credit Quality . SBNA's credit metrics remain in line with large bank peers SC's 30-59 days delinquency ratio declined 20bps YoY while >59 days delinquency ratio increased 20bps YoY SC's TDR balances declined $0.4BN vs. 1Q19 and have declined $1.6BN vs. 2Q18 ¹Data as of June 30, 2019 unless otherwise noted. 2Includes noncontrolling interest. Refer to page 23 for additional detail. 3Federal Home Loan Bank 4Liquidity coverage ratio 5Common Equity Tier 1 Santander#5Introduction SHUSA is a bank holding company wholly owned by Santander (NYSE: SAN) SIS SBNA SC NYSE: SC BSI • 5 SHUSA and its subsidiaries include: Well-established banking franchises • • in the Northeast U.S. and Puerto Rico A nationwide auto finance business An international private banking business A wholesale broker-dealer Headquartered in Boston. Regulated by the Federal Reserve SEC registered¹ • Bloomberg ticker: SOV SBC • Website www.santanderus.com 1SHUSA's SEC filings are accessible on the SEC website at www.sec.gov and are also accessible through SHUSA's website at www.santanderus.com. Santander#6Corporate Structure¹ SHUSA ownership of SC increased from 69.8% to 70.5% during 2Q19 70.5% ownership Santander 100% ownership SHUSA $143.9BN Assets SBNA SC BSI BSPR² SIS $81.4BN Assets $46.4BN Assets Retail Bank Auto Finance $6.0BN Assets Private Banking $6.2BN Assets Retail Bank $1.8BN Assets Broker Dealer 1Balances as of June 30, 2019. 2Banco Santander Puerto Rico. 6 Santander#7Management Changes On July 24, 2019, SHUSA, SBNA, and SC announced the following management changes effective September 16, 2019: At SHUSA/SBNA: . • Timothy Wennes will become President and Chief Executive Officer ("CEO") of SBNA. He joins SBNA from MUFG Union Bank in California. Mr. Wennes succeeds Duke Dayal, who was named Chief Financial Officer ("CFO") of Santander UK on July 10, 2019. Juan Carlos Alvarez will become SHUSA and SBNA CFO. Mr. Alvarez currently serves as the CFO at SC. Mr. Alvarez succeeds Mr. Dayal in this role. At SC: • Fahmi Karam, SC's Head of Pricing and Analytics, will succeed Mr. Alvarez as CFO of SC. He will continue to lead the Pricing and Analytics group in addition to his new role. Shawn Allgood, currently Executive Vice President at Chrysler Capital, succeeds Richard Morrin as Head of Chrysler Capital and Auto Relationships at SC. Mr. Morrin has resigned to assume a CEO role with a privately held company outside of the auto finance industry. 7 Santander#8Santander US Key Initiatives • SHUSA • SBNA SC Integrate U.S. operations and support functions to improve efficiency Optimize balance sheet and capital across U.S. businesses • • Continue to improve loyalty and the customer experience across digital and physical channels Invest in people, products and technology in Corporate Investment Banking and Commercial Banking Enhance earning asset mix • Increase non-prime originations ensuring appropriate risk-return profile Leverage SBNA for prime originations • Enhance dealer and customer experience to drive originations growth 8 Santander#9Quarterly Profitability1,2 2019 net income improved QoQ and YoY Net Interest Income ($MM) Pre-Tax Pre-Provision Income ($MM) 1,250 2,000 1,043 962 970 1,592 1,599 1,604 1,603 1,622 956 1,000 915 1,500 1,000 500 750 500 250 0 0 2018 3Q18 4Q18 1Q19 2019 2018 3018 4Q18 1019 2019 800 528 450 300 150 Pre-Tax Income/(Loss) ($MM) 349 184 356 562 500 400 360 300 200 100 Net Income ($MM)1 239 132 240 407 0 0 2018 3018 4018 1019 2Q19 2018 3018 4018 1Q19 2019 1 Net income includes noncontrolling interest. Refer to page 23 for additional detail. 2See Page 21 for the consolidating income statement. 9 Santander#10Net Interest Margin ("NIM”) and Interest Rate Risk ("IRR”) Sensitivity SHUSA's asset sensitive position has decreased modestly since 4Q18 12.00% NIM 4.00% SHUSA IRR (Change in annual net interest income for parallel rate movements) 10.00% 10.9% 10.6% 10.2% 10.0% 10.1% 3.00% 3.20% 2.79% 2.87% 8.00% 2.00% 2.53% 2.54% 1.00% 6.00% 5.80% 5.98% 5.90% 5.81% 5.71% 0.00% 4.00% 2018 3Q18 4018 1019 2019 -1.00% 3.19% 3.18% 3.25% 3.15% 3.11% 2.00% -2.00% 0.00% -3.00% -2.67% 2018 3018 4018 1019 2019 -2.78% -2.95% -3.07% -4.00% -3.44% SHUSA -SC SBNA Down 100bps Up 100bps 10 Santander#1111 Balance Sheet Overview1,2 SHUSA's balance sheet reflects the combination of depository institutions funded by core deposits and an auto finance company financed with diversified wholesale funding sources $143.9BN Assets $119.4BN Liabilities $24.5BN Equity Home CRE3 Equity Multi-Family Residential 6% Mortgage 4% 6% 6% Goodwill 3% Other Assets4 7% Cash 5% 11% Investments 20% Auto Loans - SC C&I and Other Commercial Equity 17% 17% Money Market Deposit Accounts ("MMDA") 17% 10% Non Interest-Bearing Demand Deposits ("NIB DDA") Savings 4% Interest-Bearing 7% Demand Deposits 1% Other Consumer 3% Auto Loans SBNA 5% Other Liabilities 11% 5% FHLB Auto Leases - SC 6% 18% ("IB DDA") 6% Certificates 5% of Deposit Revolving Credit Other Borrowings Facilities Secured Structured Financings Santander 1Balances as of June 30, 2019. 3 Commercial real estate ("CRE"). 2See page 22 for the consolidating balance sheet. 4Includes loans held for sale and allowance for loan and lease losses.#12Balance Sheet Trend Balance sheet trend reflects loan and lease growth funded by deposits and borrowed funds Assets ($BN) Liabilities and Equity ($BN) 12 $144 $144 $130 $132 $136 $139 $8 $8 $8 $130 $132 $136 $139 $6 $8 $16 $15 $15 $49 $17 $15 $48 $47 $47 $46 $15 $92 $15 $15 $14 $15 $85 $86 $88 $90 $49 $39 $42 $45 $46 $5 $5 $5 $5 $6 $12 $13 $14 $14 $15 $24 $24 $24 $24 $25 $10 $10 $10 $11 $12 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 Short Term Funds Gross Loans Other Assets IB Deposits Borrowed Funds Equity Investments Leases NIB Deposits Other Liabilities Santander#13Balance Sheet Trend (cont.) Loan increase primarily due to SBNA C&I and prime auto loans¹ Deposit growth in core customers Loans and Leases ($BN) Deposits ($BN) 13 $96 $99 $102 $104 $107 $15 $16 $16 $16 $15 $62 $61 $61 $63 $64 $17 $17 $17 $17 $15 $15 $14 $15 $15 $17 $25 $23 $23 $24 $9 $8 $9 $9 $10 $22 $6 $6 $6 $6 $6 $27 $28 $29 $30 $32 $25 $25 $24 $24 $24 $12 $13 $14 $14 $15 $6 $6 $8 $8 $9 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 Res. Mtg C&I Leases NIB DDA Savings Time CRE Auto Other IB DDA MMDA Other ¹See slides 32 and 33 for trend detail on SBNA loan portfolio Santander#14Borrowed Funds Profile¹ Public issuances consist of SHUSA unsecured debt and SC auto asset-backed securities SHUSA Consolidated ($BN) SHUSA HOLDCO ($BN) $9.2 $8.4 $45.6 $48.9 $9.2 SHUSA Debt $8.4 $19.1 SC ABS $18.5 SHUSA Debt $7.2 SC Private Amortizing $8.6 $6.5 SC 3rd Party $5.1 SBNA $5.1 $6.9 1Q19 2Q19 $5.1 SBNA ($BN) $6.9 1Q19 2Q19 SC ($BN) $36.8 $35.6 $18.5 ABS $19.1 FHLB $6.8 $7.2 $4.9 Private Amortizing $8.6 3rd Party $6.5 $5.1 Intragroup2 Bank Debt 1Q19 $3.5 $4.0 2Q19 1Q19 2Q19 1As of June 30, 2019. 2Intragroup balance includes lending from SHUSA to SC, which is eliminated in consolidation. 14 Santander#15SHUSA Debt and Total Loss Absorbing Capacity ("TLAC") Rule • In June 2019 SHUSA issued $1.0BN 3.50% debt due 2024 and in July 2019 redeemed $0.7BN floating rate debt due 2019 and issued $0.7BN floating rate debt due 2023 As of 2019 SHUSA met the Federal Reserve TLAC and Long term Debt ("LTD") requirements with 21.2% TLAC and 6.2% LTD¹ $1.9 $0.4 $1.7 $0.7 Sr. L+100 $1.4 $0.4 $1.44 Sr. Sr. L+100 $1.1 L+110 $1.05 $1.0 $1.0 $1.0 $1.0 Sr Sr Sr Sr Sr Sr Sr Debt Debt Debt Debt Debt Debt Debt 2.65% 4.45% 3.70% 3.40% 3.50% 4.50% 4.40% 15 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 L = 3 month U.S. Libor. Public issuance Private placement Santander ¹SHUSA's requirement is 20.5% for TLAC and 6.0% for LTD as a percentage of risk-weighted assets#16Capital Ratios¹ SHUSA capital ratios remain at the top of peers² Modest decline in ratios due to asset growth and regulator approved capital actions CET1 Tier 1 Leverage Ratio 16.3% 14.6% 15.7% 15.5% 14.2% 15.4% 14.0% 13.9% 15.0% 13.7% 2018 3018 4Q18 1Q19 2019 2018 3018 4018 1Q19 2019 Tier 1 Risk-Based Capital Ratio 17.9% 17.1% 16.9% 16.7% 16.3% ☐ 2018 3Q18 4Q18 1Q19 2019 ¹Capital ratios calculated under the U.S. Basel III framework on a transitional basis. 2See page 24 for comparison of SHUSA capital ratios to peers. Total Risk-Based Capital Ratio 19.5% 18.7% 18.4% 18.1% 17.7% 2018 3Q18 4Q18 1Q19 2Q19 16 Santander#17Asset Quality: SBNA SBNA asset quality metrics remain in line with large bank peers Annualized Net Charge off Ratio NPL Ratio¹ 0.60% 1.50% 1.28% 1.20% 0.44% 0.45% 1.25% 0.40% 0.41% 0.39% 1.20% 1.06% 1.07% 1.05% 0.37% 0.37% 0.97% 1.00% 0.40% 0.41% 0.36% 0.35% 0.92% 0.90% 1.06% 1.02% 0.24% 0.34% 0.20% 0.27% 0.36% 0.96% 0.91% 0.60% 0.27% 0.83% 0.79% 0.76% 0.78% 0.76% 0.21% 0.30% 0.14% 0.14% 0.00% 0.00% 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 Large Banks SBNA ALLL² to Total Loans Large Banks SBNA Reserve Coverage (ALLL/NPL) 17 1.50% 200.0% 1.20% 1.17% 1.16% 1.13% 1.16% 1.10% 1.13% 1.11% 0.90% 1.06% 1.06% 1.09% 1.07% 1.12% 1.06% 1.06% 1.09% 1.10% 143.5% 149.0%149.4%148.0% 153.5% 150.0% 120.1% 124.4% 126.8% 134.5% 1.05% 1.02% 100.0% 0.60% 100.3% 96.7% 104.3% 101.4% 108.3% 104.6% 110.4% 85.1% 88.2% 0.30% 50.0% 0.00% 0.0% 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 Large Banks SBNA **Source: SNL Bank level data; Large Bank = BAC, COF, C, KEY, BMO, HSBA, PNC, RBS, JPM, UNB, TD, USB, and WFC 1NPLs = Non accruing loans plus accruing loans 90+ days past due ("DPD"). 2ALLL = Allowance for loan and lease losses. 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 Large Banks SBNA Santander#1818 Asset Quality: SC - Loss and Delinquency • YoY gross charge-offs increased 90 basis points while YoY net charge-offs increased 30 basis points YoY 30-59 day delinquency rates decreased 20 basis points while YoY >59 day delinquency rates increased 20 basis points 15.2% Credit: Individually Acquired Retail Installment Contracts ("RICS"), Held for Investment 60.2% 6.1% 20.2% 19.5% 17.6% Delinquency: Individually Acquired RICS Held for Investment 11.0% 10.5% 9.6% 16.1% 10.6% 6.0% 5.5% 8.8% 8.6% 4.5% 6.4% 9.4% 8.4% 4.7% 4.2% 60.3% 55.9% 50.0% 47.3% Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Gross Charge-off Ratio Net Charge-off Ratio Recovery Rate (as % of recorded investment) SOURCE: SC Second Quarter 2019 presentation in its Form 8-K filed on July 24, 2019. See http://investors.santanderconsumerusa.com/financial-info/quarterly-results. 30-59 >59 Santander#1919 Rating Agencies STANDARD & POOR'S On August 9, 2018, S&P affirmed SHUSA's ratings at BBB+/A-2 and SBNA's ratings at A-/A-2. The outlook for both remains Stable. MOODY'S On December 14, 2017, Moody's upgraded SBNA's long-term rating by 1 Fitch Ratings notch from Baa2 to Baa1. SHUSA's rating remained at Baa3. On July 15, 2019, Fitch affirmed the ratings for SHUSA and SBNA at BBB+/F-2 and the outlook at Stable. SBNA SHUSA SANTANDER July 2019 S&P Moody's Fitch S&P Moody's Fitch S&P Moody's Fitch Short Term A-2 P-1 F-2 A-2 N/A F-2 A-1 P-1 F-2 Deposits Long-Term A-2 A2 A- N/A N/A N/A A-1 A2 22 A- Deposits Senior Debt A- Baa1 BBB+ BBB+ Baa3 BBB+ A A2 A- Outlook Stable Stable Stable Stable Stable Stable Stable Stable Stable Santander#20Appendix Santander#21Consolidating Income Statement For the three-month period ended June 30, 2019 (US $ Millions) Interest income Interest expense Net interest income Fees & other income/(expense) SBNA SC Other (1) IHC Entities (2) SHUSA $ 719 $ 1,324 $ 13 $ 120 $ 2,176 (172) (332) (34) (16) (554) 547 992 (21) 104 1,622 142 714 (16) 121 961 Other non interest income 2 2 Net revenue/(loss) 691 1,706 (37) 225 2,585 General, administrative and other expenses (539) (795) (53) (155) (1,542) Other expenses Provision for credit losses (47) (431) 1 (4) (481) Income/(loss) before taxes 105 480 (89) 66 562 Income tax (expense)/benefit (20) (112) (3) (20) (155) Net income/(loss) 85 368 (92) 46 407 Less: Net Income Attributable to NCI 111 111 Net income Attributable to SHUSA $ 85 $ 257 $ (92) $ 46 $ 296 21 ¹Includes holding company activities, IHC eliminations, eliminations and purchase accounting marks related to SC consolidation. 2The entities acquired in the formation of the IHC are presented within "other" in SHUSA's financial statement segment presentation due to immateriality. Santander#22Consolidating Balance Sheet June 30, 2019 22 IHC (US $ millions) Assets SBNA SC Other (1) Entities (2) SHUSA Cash and cash equivalents $ 4,603 100 $ (120) $ 3,436 $ 8,019 Investments available-for-sale at fair value 9,214 95 249 2,344 11,902 Investments held-to-maturity 2,956 2,956 Other investment securities (3) 949 2 5 956 Loans held for investment ("HFI") Less ALLL Total loans HFI, net Goodwill 53,819 28,961 (58) 7,250 89,972 (560) (3,122) 4 (106) (3,784) 53,259 25,839 (54) 7,144 86,188 3,403 74 967 4,444 Other assets 7,019 Total assets $ 81,403 $ 20,304 46,412 518 1,604 29,445 $ 1,562 $ 14,533 $ 143,910 Liabilities and Stockholder's Equity Deposits $ 58,319 $ $ (4,069) $ 9,470 $ 63,720 Borrowings and other debt obligations 6,900 36,765 5,169 73 48,907 Other liabilities Total liabilities Stockholder's equity including noncontrolling interest Total liabilities and stockholder's equity 2,448 2,310 152 1,868 67,667 39,075 1,252 11,411 6,778 119,405 13,736 7,337 310 3,122 24,505 $ 81,403 $ 46,412 $ 1,562 $ 14,533 $ 143,910 ¹Includes holding company eliminations, IHC eliminations and purchase accounting marks related to SC consolidation. 2The entities acquired in the formation of the IHC are presented within "other" in SHUSA's financial statement segment presentation due to immateriality. 3Other investment securities include trading securities. Santander#23Quarterly Trended Statement of Operations (US$ Millions) Interest income Interest expense Net interest income 2018 3Q18 4Q18 1Q19 2Q19 $ 2,001 $ 2,043 $ 2,095 $ 2,141 2,176 (409) (444) (491) (538) (554) 1,592 1,599 1,604 1.603 1,622 Fees & other income 819 824 807 897 961 Other non interest income (2) (5) (2) 2 Net revenue 2,411 2,421 2,406 2.498 2,585 General, administrative, and other expenses (1,449) (1,451) (1,491) (1,542) Provision for credit losses (434) (621) (731) (600) (1,542) (481) Income before taxes 528 349 184 356 562 Income tax (expense)/benefit (168) (110) (52) (116) (155) Net income $ 360 $ 239 $ 132 $ 240 $ 407 Less: Net Income Attributable to NCI 104 72 32 73 111 Net income Attributable to SHUSA 256 $ 167 $ 100 $ 167 $ 296 23 Santander#2422% Capital Ratios Peer Comparison (as of 6/30/19) 18% CET1 16% Peer Group Median = 10.53% 14% 12% 10% 8% 6% Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Total Risk-Based Capital Peer 8 Peer 9 Peer 10 Peer 11 20% Peer Group Median = 13.73% 18% 16% 14% 12% 10% 8% Peer 1 Peer 2 Peer 3 Peer 4 Peer Median Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 11 Peer 10 Peer 12 Peer 13 Peer 12 Peer 13 Peer 14 Peer 15 Peer 16 Peer 14 Peer 15 Peer data from SNL Peer 16 Peer 17 SHUSA 20% 18% 15.04% 16% 14% 12% 10% 8% Peer 17 Peer 18 SHUSA 7 6% Peer 18 16% 14% 17.75% 12% 10% 8% 6% 4% Peers: ALLY, BBT, BBVA, BMO, BNP, COF, CIT, CFG, CMA, DFS, FITB, HBAN, KEY, MTB, MUFG, RF, STI, TD Tier 1 Risk-Based Capital Peer Group Median = 11.70% Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 16.27% Peer 13 Peer 14 Peer 15 Peer 16 SHUSA Peer 17 Peer 18 Peer Group Median = 10.01% Tier 1 Leverage Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer 15 Santander Peer 16 Peer 17 Peer 18 SHUSA 13.73% 24#25Non-GAAP to GAAP Reconciliations $ Millions SHUSA Pre-Tax Pre-Provision Income Pre-tax income, as reported Add back: Provision for credit losses Pre-tax pre-provision Income 2Q18 3Q18 4Q18 1Q19 2Q19 CA $ 528 $ 349 $ 184 $ 356 $ 562 434 621 731 600 481 69 962 $ 970 $ 915 956 1,043 25 Santander#26Non-GAAP to GAAP Reconciliations (cont.) $ Millions 2Q18 3Q18 4Q18 1Q19 2Q19 CET 1 to Risk-Weighted Assets CET 1 capital Risk-weighted assets Ratio Tier 1 Leverage Tier 1 capital Average total assets for leverage capital purposes Ratio $ 16,611 $ 16,471 $ 16,759 $ 16,979 $ 17,277 102,023 104,988 107,916 110,469 114,877 16.3% 15.7% 15.5% 15.4% 15.0% $ 18,253 $ 17,935 $ 18,193 $ 18,397 $ 18,695 125,275 126,656 129,681 132,154 136,165 14.6% 14.2% 14.0% 13.9% 13.7% Tier 1 Risk-Based Tier 1 capital Risk-weighted assets Ratio Total Risk-Based Risk-based capital Risk-weighted assets Ratio $ 18,253 $ 17,935 $ 18,193 102,023 104,988 107,916 $ 18,397 $ 18,695 110,469 114,877 17.9% 17.1% 16.9% 16.7% 16.3% $ 19,941 $ 19,665 $ 19,807 $ 20,039 $ 20,391 102,023 107,916 110,469 104,988 114,877 19.5% 18.7% 18.4% 18.1% 17.7% 26 Santander#27SBNA: Quarterly Profitability Net Interest Income ($MM) Pre-Tax Pre-Provision Income ($MM) NII Net Interest Margin 600 541 541 547 200 516 521 156 158 152 500 143 140 150 400 3.25% 3.19% 3.18% 3.15% 300 3.11% 100 200 100 50 0 + 0 + + + 2Q18 3Q18 4Q18 1Q19 2Q19 2018 3Q18 4Q18 1Q19 2Q19 Pre-Tax Income ($MM) Net Income ($MM) 175 175 148 147 150 125 100 75 50 25 0 + 2Q18 3Q18 4Q18 1Q19 2Q19 150 125 115 114 100 105 92 100 75 85 76 63 50 25 0+ 2Q18 3Q18 4Q18 1Q19 2Q19 US $ millions 27 Santander#28SBNA: Quarterly Trended Statement of Operations 28 (US$ in Millions) Interest income 2Q18 3Q18 4Q18 1Q19 2Q19 Interest expense Net interest income Fees & other income Other non-interest income Net revenue General, administrative & other expense $ AASSASS $ 621 $ 640 $ 680 $ 698 $ 719 $ (105) $ (119) $ (139) $ (157) $ (172) $ 516 $ 521 $ 541 $ 541 $ 547 $ 138 $ 122 $ 138 $ 130 $ 142 $ $ (1) $ (5) $ (2) $ 2 $ 654 $ 642 $ 674 $ 669 $ 691 (498) $ (484) $ (531) $ (529) $ (539) Release of/(provision for) credit losses $ (8) $ (11) $ (43) $ (48) $ (47) Income before taxes $ 148 $ 147 $ 100 $ 92 $ 105 Income tax expense $ (33) $ (33) $ (37) $ (16) $ (20) Net income/(loss) $ 115 $ 114 $ 63 $ 76 $ 85 2Q18 3Q18 4Q18 1Q19 2Q19 Net interest margin before provision 3.19% 3.18% 3.25% 3.15% 3.11% Santander#29SBNA: Quarterly Average Balance Sheet Quarterly Averages 29 (In millions) 2Q19 1Q19 Change 2Q18 Average Balance Yield/ Rate Average Yield/ Average Yield/ Average Yield/ Balance Rate Balance Rate Balance Rate Deposits and investments $ 15,997 2.40% $ 15,996 2.60% $ 1 -0.20% $ 17,684 2.34% Loans 54,330 4.59% 52,622 4.51% 1,708 0.08% 47,903 4.35% Allowance for loan losses (560) (546) (14) (546) Other assets 9,322 9,108 214 8,586 TOTAL ASSETS $ 79,089 3.64% $ 77,180 3.62% $ 1,909 0.02% $ 73,627 3.39% Interest-bearing demand deposits 8,791 0.71% 8,444 0.69% 347 0.02% 7,974 0.34% Noninterest-bearing demand deposits 12,514 12,320 194 11,808 Savings 3,885 0.06% 3,817 0.69% 68 -0.63% 4,041 0.34% Money market 25,576 1.24% 25,984 1.15% (408) 0.09% 28,265 0.90% Certificates of deposit 7,213 2.00% 6,660 1.86% 553 0.14% 5,028 1.41% Borrowed funds 5,317 3.07% 4,373 3.27% 944 -0.20% 1,391 4.79% Other liabilities 2,101 2,068 33 1,608 Equity 13,692 13,514 178 13,512 TOTAL LIABILITIES & STOCKHOLDER'S EQUITY $ 79,089 0.87% $ 77,180 0.81% $ 1,909 0.06% $ 73,627 0.57% NIM 3.11% 3.15% -0.04% 3.19% Santander#30SBNA: Funding - Deposits* Average Non-Maturity Deposit Balances¹ ($Bn) Average Total Deposit Balances¹ ($Bn) 1.00% 1.10% 0.95% 1.05% $48.1 $47.7 $47.7 $47.0 $47.3 0.90% $53.1 $53.0 $53.5 $53.7 $54.5 1.00% 0.93% 0.85% 0.95% 0.77% 0.80% 0.87% 0.90% 0.74% 0.75% 0.85% 0.68% 0.79% 0.70% 0.80% 0.61% 0.65% 0.75% 0.70% 0.60% 0.70% 0.55% 0.63% 0.55% 0.65% 0.50% 0.60% 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 Non-Maturity Deposit Balances Avg. Interest Cost 3Q18 Total Deposits 4Q18 1Q19 2Q19 -Avg. Interest Cost *SBNA total deposits less the SHUSA cash deposit held at SBNA. ¹Represents average quarterly balances. 30 Santander#31SBNA: Asset Quality NPLs -17% $ MM Criticized Balances¹ Criticized Balances ―Criticized Ratio $ MM 13% 31 $613 $618 $570 $517 $522 $523 $535 $2,230 $504 $508 $2,142 $1,969 $2,008 $2,011 $2,008 $1,945 $1,903 $1,796 4.01% 4.13% 4.18% 4.11% 4.05% 4.03% 4.02% 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 2Q17 3Q17 4Q17 3.68% 3.68% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 Delinquency² Texas Ratio³ 11.38% 0.81% 0.82% 10.97% 10.69% 0.77% 10.19% 0.75% 0.75% 0.72% 0.70% 0.69% 0.70% 9.49% 9.27% 9.02% 8.95% 8.44% 0.62% 0.55% 0.50% 0.52% 0.49% 0.51% 0.50% 0.45% 0.47% 9.00% 8.90% 8.50% 8.00% 8.10% 7.76% 7.45% 7.48% 7.02% 2Q17 3Q17 4Q17 SBNA 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 Large Banks 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 Large Banks SBNA **Source: SNL Bank level data; Large Bank = BAC, COF, C, KEY, BMO, HSBA, PNC, RBS, JPM, UNB, TD, USB, and WFC ¹Criticized loans that are categorized as special mention, substandard, doubtful, or loss. 2Delinquency = accruing loans 30-89 DPD plus accruing loans 90+ DPD. 3See below for detail and non-GAAP measurement reconciliation of Texas Ratio. Santander#32SBNA: Asset Quality (cont.) Mortgages Home Equity 32 $7.2 $7.4 $7.9 $8.2 $8.6 $8.9 $9.0 $9.1 $9.0 $5.8 $5.7 $5.7 $5.6 $5.5 $5.4 $5.3 $5.2 $5.0 1.8% 1.8% 1.8% 1.9% 1.8% 1.8% 1.8% 1.8% 1.8% 1.9% 1.8% 1.6% 1.4% 1.2% 1.1% 1.1% 1.1% 1.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 2Q17 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.0% -0.1% -0.1% 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 CRE¹ Santander Real Estate Capital ("SREC") $5.4 $5.5 $5.2 $5.1 $5.3 $5.3 $5.3 $5.4 $5.3 $8.8 $8.7 $8.7 $8.4 $8.5 $8.4 $8.3 $8.4 $8.5 0.5% 0.5% 0.5% 0.5% 0.4% 0.8% 0.0% 0.0% 0.0% 0.0% 0.1% 0.1% 0.1% 0.4% 0.3% 0.1% 0.1% 0.0% -0.1% 0.1% 0.1% 0.1% 0.0% 0.0% 0.1% 0.1% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% T T T T 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 Outstandings NPLs to Total Loans Net Charge-Offs** *NPL = Nonaccruing loans plus accruing loans 90+ DPD **NCO = Rolling 12-month average for that quarter and the prior 3 quarters 1Commercial real estate ("CRE") is comprised of the commercial real estate and continuing care retirement communities business segments (SREC segment included in separate graph). US $ Billions Santander#33SBNA: Asset Quality (cont.) Commercial Banking¹ $14.6 $14.4 $14.4 $13.7 $14.1 $14.3 $14.6 $14.9 $15.0 Corporate and Investment Banking 33 $6.9 $6.4 $5.7 $5.2 1.7% 1.8% 1.5% 1.7% 1.5% 1.3% 1.2% 1.2% 1.4% 1.2% 0.8% $4.7 $4.7 1.3% 1.3% $5.3 $5.4 1.2% 1.1% $5.8 1.6% 1.4% 1.2% 0.8% 0.3% 0.8% 0.7% 0.3% 0.4% 0.4% 2Q17 3Q17 0.3% 0.2% 4Q17 1Q18 2Q18 3Q18 0.2% 0.1% + 0.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% T 4Q18 1Q19 2Q19 2Q17 3Q17 4Q17 Other Consumer² 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 Indirect Chrysler³ $3.8 $2.3 4.4% 4.6% 4.7% 4.8% 3.8% $1.5 3.7% 3.7% $1.6 $1.6 4.2% 4.0% $1.5 $1.5 $1.6 $1.5 $1.7 $1.6 $1.5 $0.7 $0.0 $0.0 $0.0 $0.0 $0.0 0.2% 1.8% 1.7% 1.7% 1.7% 1.6% 1.3% 1.3% 1.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.5% 0.6% 0.3% 1.4% 0.0% 9.9% 8.0% 0.0% 01% 0.0% 0.2% 0.3% 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 2Q17 3Q17 4Q17 1Q18 Outstandings NPLs to Total Loans 2Q18 3Q18 4Q18 1Q19 2Q19 Net Charge-Offs** *NPL = Nonaccruing loans plus accruing loans 90+ DPD **NCO = Rolling 12-month average for that quarter and the prior 3 quarters ¹Commercial Banking = Equipment Finance & Leasing, Commercial Equipment Vehicle Finance-Strategic, Financial Institutions Coverage, International Trade Banking, Middle Market, Asset-Based Lending, Institutional-Non Profit, Government Banking, Life Sciences & Technology, Professional & Business Services, Energy Finance, Mortgage Warehouse, Other Non- Core Commercial, Chrysler Auto Finance, Footprint Dealer Floorplan and Commercial Banking Not Classified Elsewhere and all other Commercial Business segments. US $ Billions 2Other Consumer = Direct Consumer, Indirect Consumer, Recreational Vehicle/Marine, Credit Cards, & Retail. run-off. ³Indirect Chrysler = Prime auto loans originated by SBNA through program with SC. Santander#34SBNA: Capital Ratios¹ CET1 Tier 1 Leverage Ratio 18.2% 17.3% 17.1% 16.8% 16.2% 14.4% 14.1% 14.1% 13.9% 13.6% וו 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2019 Tier 1 Risk-Based Capital Ratio Total Risk-Based Capital Ratio 18.2% 19.3% 17.3% 17.1% 18.4% 18.2% 16.8% 17.8% 16.2% 17.2% 2018 3Q18 4Q18 1Q19 2Q19 2Q18 3018 4Q18 1019 2019 1Capital ratios calculated under the U.S. Basel III framework on a transitional basis. 34 Santander#35SBNA: Non-GAAP to GAAP Reconciliations $ Millions CET 1 to Risk-Weighted Assets CET 1 Capital Risk-weighted assets Ratio Tier 1 Leverage 2Q18 3Q18 4Q18 1Q19 2Q19 $ 10,135 $ 9,952 $ 10,179 $ 10,239 $ 10,303 55,779 57,609 59,394 61,057 63,635 18.2% 17.3% 17.1% 16.8% 16.2% Tier 1 capital Average total assets for leverage capital purposes Ratio $ 10,135 $ 9,952 $ 10,179 $ 10,239 $ 10,303 70,222 70,694 72,309 73,903 75,719 14.4% 14.1% 14.1% 13.9% 13.6% Tier 1 Risk-Based Tier 1 capital Risk-weighted assets Ratio Total Risk-Based $ 10,135 $ 9,952 55,779 57,609 $ 10,179 $ 10,239 $ 10,303 59,394 61,057 63,635 18.2% 17.3% 17.1% 16.8% 16.2% Risk-based capital Risk-weighted assets Ratio $ 10,766 $ 10,577 $ 10,820 $ 10,890 $ 10,952 55,779 57,609 59,394 61,057 63,635 19.3% 18.4% 18.2% 17.8% 17.2% 35 Santander#36SBNA: Non-GAAP to GAAP Reconciliations (cont.) $ Millions 2Q18 3Q18 4Q18 1Q19 2Q19 SBNA Texas Ratio Total Equity Less: Goodwill and other intangibles (excluding MSRs¹) Preferred stock Add: Allowance for loan losses Total equity and loss allowances for Texas Ratio Nonperforming assets $ 13,476 $ 13,241 $ 13,408 $ 13,561 $ 13,736 (3,581) (3,589) (3,636) (3,607) (3,632) 545 531 560 560 546 $ 10,440 $ 10,183 $ 10,318 $ 10,514 $ 10,664 $ 537 $ 541 $ 526 $ 558 $ 528 90+ DPD accruing 0 0 7 7 Accruing TDRs 284 244 232 232 215 Total nonperforming assets $ 821 $ 785 $ 765 $ 797 $ 749 Texas ratio ¹Mortgage servicing rights. 7.9% 7.7% 7.4% 7.6% 7.0% 36 Santander#37SBNA: Non-GAAP to GAAP Reconciliations (cont.) 37 2Q18 3Q18 4Q18 1Q19 2Q19 $ Millions SBNA Pre-Tax Pre-Provision Income Pre-tax income, as reported 148 $ 147 $ 100 $ 92 $ 105 Add back: (Release of)/provision for credit losses 8 Pre-tax pre-provision income 156 $ 11 158 $ 43 48 47 143 $ 140 $ 152 Santander#38Apr-13 CREDIT Apr-15 Jun-14 SEVERITY Jun-15 SC: Auto Industry Analysis Jun-16 Used Vehicle Indices1 SC Recovery Rates 145 Manheim: Seasonally Adjusted Manheim JD Power: Not Seasonally Adjusted % JDP Used-Vehicle Price Index 2 65% Auction Recovery Rate SC Recovery Rate (Quarterly) 3 140.5 140 60.2% 60.3% 134.9 60% 135 130 125 55% 123.7 120.1 50% 50.8% 120 115 45% 46.5% 110 40% 105 100 35% Jun-17 Jun-18 Jun-19 Jun-14 Jun-15 Industry Net Loss Rates4 % Subprime Max: 10.2% Industry 60+ Day Delinquency Rates4 % ⚫Subprime M www. mmm 6.4 6.6 4.0 Max: 5.9% 4.3 Apr-17 1 Manheim, Inc. indexed to a basis of 100 at 1995 levels; JD Power Used-Vehicle Price Index (not seasonally adjusted) 2 Auction Only - includes all auto-related recoveries including inorganic/purchased receivables from auction lanes only 3 Recovery Rate - Per the financial statements includes insurance proceeds, bankruptcy/deficiency sales, and timing impacts 4 Standard & Poor's Rating Services (ABS Auto Trust Data - two-months lag on data, as of April 30, 2019) SOURCE: SC Second Quarter 2019 presentation in its Form 8-K filed on July 24, 2019. See http://investors.santanderconsumerusa.com/financial-info/quarterly-results. Min: 4.0% Apr-19 Apr-13 Apr-15 Apr-17 Jun-16 Jun-17 Min: 1.6% Apr-19 Santander Jun-18 Jun-19 38#39SC: TDR Balance Composition by Vintage TDR Balance by Origination Vintage ($ billions) 6.3 6.3 6.1 6.1 5.9 2% 5.8 6% 16% 8% 20% 5.4 10% 24% 4.9 14% 1% 26% 4.5 3% 27% 17% 37% 37% 37% 36% 34% 32% 31% 29% 28% 27% 19% 27% 27% 27% 24% 22% 20% 18% 17% 16% 15% 28% 23% 14% 21% 18% 16% 14% 12% 11% 9% 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 ■2013 & Prior 2014 2015 2016 2017 2018 SOURCE: SC Second Quarter 2019 presentation in its Form 8-K filed on July 24, 2019. See http://investors.santanderconsumerusa.com/financial-info/quarterly-results. 39 Santander