#1SANTANDER HOLDINGS USA, INC. Fixed Income Investor Presentation First Quarter 2021 May 4, 2021#2DISCLAIMER DISCLAIMER 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. 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 generally accepted accounting principles ("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. SHUSA's subsidiaries include Banco Santander International ("BSI"), Santander Investment Securities, Inc. ("SIS"), Santander Securities LLC ("SSLLC"), Santander Financial Services, Inc. ("SFS"), and Santander Asset Management, LLC, as well as several other subsidiaries. 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 adverse impact of a novel strain of coronavirus ("COVID-19") on our business, financial condition, liquidity and results of operations; (2) the effects of regulation, actions and/or policies of 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, and other changes in monetary and fiscal policies and regulations, including policies that affect market interest rates and money supply, actions related to COVID- 19 as well as in the impact of changes in and interpretations of GAAP, including adoption of the Financial Accounting Standards Board's current expected credit losses credit reserving framework, the failure to adhere to which could subject SHUSA and/or its subsidiaries 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; (3) SHUSA's ability to manage credit risk may increase to the extent our loans are concentrated by loan type, industry segment, borrower type or location of the borrower of collateral; (4) adverse economic conditions in the United States and worldwide, including the extent of recessionary conditions in the U.S. related to COVID-19 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; (5) acts of God, including pandemics and other significant public health emergencies, and other natural or man-made disasters and SHUSA's ability to deal with disruptions caused by such acts, emergencies, and disasters; (6) inflation, interest rate, market and monetary fluctuations, including effects from the pending discontinuation of the London Interbank Offered Rate as an interest rate benchmark, 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; (7) the pursuit of protectionist trade or other related policies, including tariffs by the U.S., its global trading partners, and/or other countries, and/or trade disputes generally; (8) 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 negative economic effects related to the exit of the United Kingdom from the European Union; (9) 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; (10) risks SHUSA faces implementing its growth strategy, including 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; (11) SHUSA's ability to effectively manage its capital and liquidity, including approval of its capital plans by its regulators and its subsidiaries' ability to pay dividends to it; (12) reduction in SHUSA's access to funding or increases in the cost of its funding, such as in connection with changes in credit ratings assigned to SHUSA or its subsidiaries, or a significant reduction in customer deposits; (13) the ability to manage risks inherent in our businesses, including through effective use of systems and controls, insurance, derivatives and capital management; (14) 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; (15) 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 and impact our net income adversely; (16) Santander Consumer USA Inc.'s ("SC's") agreement with FCA US LLC ("Stellantis") may not result in currently anticipated levels of growth and is subject to certain conditions that could result in termination of the agreement; (17) changes in customer spending, investment or savings behavior; (18) 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; (19) SHUSA's ability to control operational risks, data security breach risks and outsourcing risks, and the possibility of errors in quantitative models and software 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; (20) changing federal, state, and local laws and regulations that could materially adversely affect our business, including changes to 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 actions or proceedings, including possible business restrictions resulting from such actions or 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 (24) the other factors that are described in Part I, Item IA - Risk Factors of SHUSA's 2020 Annual Report on Form 10-K. 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, 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 Securities Act of 1933, as amended, or an exemption therefrom. 2 Santander#3SANTANDER GROUP Santander (SAN SM, STD US) is a leading retail and commercial bank headquartered in Spain. It has a meaningful presence in 10 core markets in Europe and the Americas. The United States is a core market for Santander, contributing 23% to Q1 2021 underlying attributable profit, up from 11% in Q1 2020. Q1 2021 Loans & Advances to Customers1 Digital Consumer Bank: 13% Europe: 61% South America: 13% Mexico: 3% €924B* Total Gross Loans USA: 10% 3 1 Loans and advances to customers excluding reverse repos 2 As a % of operating areas. Excluding corporate center and Santander global platform Figures in IFRS Contribution to Q1 2021 underlying attributable profit² Digital Consumer Bank: 11% South America: 29% €2.1B* Underlying Attributable Profit Europe: 31% USA: 23% Mexico & Other: 6% Santander#4SANTANDER HOLDINGS USA, INC. SHUSA is the intermediate holding company ("IHC") for Santander US entities, SEC registered and issues under the ticker symbol "SANUSA" Bo ko SHUSA Highlights ATM $147B in assets 8 major locations 15,700 employees 808 ~5M customers 4 Santander SHUSA¹ 100% Ownership SC operates in all 50 states Company location SC SBNA - Retail Bank 100% Ownership $89B Assets Products include: Commercial and industrial ("C&I") Multi-family Residential mortgage Auto and dealer floorplan financing • • SC - Auto Finance ~80% Ownership* $47B Assets Preferred auto finance provider to Stellantis Leading auto loan & lease originator & servicer #1 retail auto asset- backed securities ("ABS") issuer in 2020 in US • BSI - Private Banking 100% Ownership $7B Assets Private wealth management for HNW and UHNW clients SIS Broker Dealer 100% Ownership $3B Assets Investment banking services include: • Global markets • Global transaction banking • Global debt financing • Corporate finance • Listed under the ticker symbol "SC" on the NYSE As of March 31, 2020 1 Includes Santander Securities LLC (SSLLC), which offers personal investment & financial planning services to clients ($100MM Assets) BSI SBNA SIS Santander#5SANTANDER BANK SBNA is a regional Northeast retail and commercial bank with a stable deposit base 560 branches SBNA Highlights ATM 2,200 ATMs 000 Includes 1,000 in CVS PharmacyⓇ locations. ~9,200 employees ~2 million customers Continue leveraging the capabilities of the auto finance business and interconnectivity of Corporate and Investment Banking ("CIB") and Wealth Management businesses Goodwill, 2% Other Loans, 1% Home Equity, 4% Other Assets, 6% Residential, 7% CRE, 8% $89B Assets Multi-family, 9% Auto Loans, 11% Cash, 12% 5 Commercial and Industrial ("C&I") C&I* and Other Commercial, 21% Execute digital and branch transformation initiatives to improve customer experience and the profitability of the consumer banking business Adapt business strategy to mitigate revenue impact from lower rates Investments, 19% Manage costs to improve efficiency and complete legacy regulatory remediation programs Santander#6SANTANDER CONSUMER USA SC is a large and established nationwide auto finance provider across the full credit spectrum with demonstrated success through credit cycles Bo ko SC Highlights 9 servicing centers 5,000 employees 1.1M loans/leases ଚଳଚ ~3M customers CA Indirect Auto and OEM* Relationships STELLANTIS Santander DODGE FIAT Jeep enterprise AutoFi TM CHRYSLER SC top 5 state % concentration SC operates in all 50 states Servicing center TX GA FL NC CARmax® RAM® NISSAN AVIS $64 billion in average managed assets (includes loans, leases and assets serviced for others) Preferred auto finance provider for Stellantis providing loans, leases, dealer floorplan Digital Auto 6 Original equipment manufacturer vroom..M Leading retail auto ABS issuer in 2020; listed under the ticker symbol "SC" on the NYSE Santander#7Q1 2021 HIGHLIGHTS 7 Regulatory The Federal Reserve Bank of Boston terminated its 2017 Written Agreement with SHUSA & SC The OCC upgraded SBNA's Community Reinvestment Act ("CRA") rating to "Outstanding" Deposits & Originations Deposits of $74B, up 6% YoY Record Q1 auto originations of $8.6B ($2B in loans through SBNA); 36% penetration rate with Stellantis Profitability Balance Sheet & Liquidity Credit Performance Net Attributable Income of $748M, driven by better credit performance and lower losses PPNR1 of $1.3B, up 22% YoY driven by lower interest expense, increased fees via capital markets and wealth management, strong lease residual performance and disciplined expense management Sold $1.3B nonprime, unsecured personal loan portfolio and $2.4B in off-balance sheet prime auto loans Sold $160M of commercial/consumer loans associated with SFS2 BSI announced a transaction to acquire up to $4.3BN in client assets and liabilities from global wealth management company, Credit Agricole Solid credit performance driven by strong auto/recovery performance and government stimulus SBNA Q1 net charge-off ratio of 0.3%, down 32 bps YoY SC Q1 net charge-off ratio of 3.0%, down 470 bps YoY and 69.1% recovery rate Allowance ratio of 8.0%, stable versus YE 2020 Reserves & Capital Common Equity Tier 1 ("CET1") ratio of 17.0%, up 110bps versus YE 2020 $3.5BN of ABS across two transactions, both achieved lowest cost of funds/largest deal size in platform history 1 Pre-Provision Net Revenue 2 Subsequent to Q1, Santander Financial Services ("SFS") acquired all non-performing loans and repossessed assets from sale of SBC Santander#8ALLOWANCE FOR CREDIT LOSSES ("ACL") Strong credit performance, including lower gross and net charge-offs and improving macroeconomic conditions led to lower reserves QoQ, allowance ratio stable March 31, December 31, March 31, Allowance Ratios (Dollars in Millions) 2021 2020 (Unaudited) (Audited) 2020 (Unaudited) Total loans held for investment ("LHFI") $91,059 $92,133 $93,006 Total ACL1 Total Allowance Ratio $7,285 $7,485 $6,794 8.0% 8.1% 7.3% Under the Federal Reserve's December 2020 stress test (Severely Adverse Scenario): Q1 2021 ending ACL represents ~81% of stress test losses SHUSA's stressed capital ratio of 14.4% ranked in the top quartile among participating banks PPNR of $7.2 billion (4.7% of average assets) ranked in the top quartile among participating banks 8 1 | Includes ACL for unfunded commitments Santander#9SHUSA QUARTERLY PROFITABILITY Q1 results driven by strong PPNR, better credit performance and disciplined expense management NET INTEREST INCOME ($M) PRE-PROVISION NET REVENUE ($M) $1,228 $1,256 $1,586 $1,621 $1,613 $1,619 $1,539 $1,030 $949 $743 9 1Q20 2Q20 3Q20 4Q20 1Q21 PRE-TAX INCOME ($M) 1Q20 2Q20 3Q20 4Q20 1Q21 $(1,105) NET INCOME ATTRIBUTABLE TO SHUSA 1,2 ($M) $822 $1,180 $748 $650 $733 $386 $(156) 1Q20 $(234) 2Q20 3Q20 4Q20 1Q21 $(127) 1Q20 $(157) I$417 2Q20 3Q20 4Q20 1Q21 12 $(2,082) Net income includes noncontrolling interest ("NCI"). See Appendix for the consolidating income statement. See Appendix for further details L $(1,873) Non-GAAP measure*, Q2 excludes goodwill impairment and Q3 excludes tax consolidation benefit from increased SC ownership and Santander BanCorp ("SBC") sale gains Santander#10NET INTEREST MARGIN & INTEREST RATE RISK SENSITIVITY Stable NIM as deposit pricing initiatives and hedges offset impact of lower loan yields and volumes SC NET INTEREST MARGIN 9.2% SHUSA 8.4% INTEREST RATE RISK SENSITIVITY (Change in annual net interest income for parallel rate movements) 10.7% Up 100bps 10.3% 9.9% 1.9% 1.9% 1.5% 3.4% 3.2% 0.0% 5.3% 5.3% 5.3% 5.3% 1Q20 2Q20 3Q20 4Q20 1Q21 4.9% -0.7% SBNA -1.1% -1.1% -1.7% 10 2.7% 2.5% 2.6% 2.6% 2.5% Down 100bps 1Q20 2Q20 3Q20 4Q20 1Q21 Santander#11BALANCE SHEET OVERVIEW Goodwill and Other Intangibles, 3% Other Consumer Loans, 2% Other Assets, 4% CRE, 4% Multi-family, 5% Residential & Home Equity, 6% Cash, 8% $147B Assets 11 Auto Leases², 11% Investments, 13% 1 Includes restricted cash and loans held-for-sale 2 Operating lease 3 Federal Home Loan Bank ("FHLB") 4 Certificates of Deposit ("CDs") See Appendix for the consolidated balance sheet Auto Loans, 27% Savings, 4% Interest-bearing demand, 8% 3 Credit facilities, 2% FHLB borrowings, 1% Other CDs, 2% Liabilities, 4% Other borrowings, 10% C&I, 16% Noninterest- bearing demand, 14% $125B Liabilities Money market, 22% $22B Equity Secured structured financings, 18% Equity, 15% Santander#12BALANCE SHEET TRENDS Deposits of $74B, up 6% YoY; loans slightly up YoY excluding the sale of SBC LOANS¹ & LEASES ($B) DEPOSITS ($B) Money Market NIB Deposits * ** IB Deposits ■Savings ■CDs Auto C&I ■Leases ■CRE ■Res. Mtg ■ Other $74 $75 $74 $111 $113 $110 $111 $70 $109 $69 4 4 6 7 3 13 12 11 8 6 5 5 11 10 5 11 6 12 16 16 16 12 17 10 16 11 17 16 16 16 16 22 19 22 18 20 20 17 24 24 24 25 24 32 37 37 41 41 24 11 24 24 24 31 31 28 41 41 33 34 =4 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 ASSETS ($B) LIABILITIES & EQUITY ($B) ■Borrowed Funds ■NIB Deposits Equity Other Liabilities Gross Loans Investments ■Leases Short-Term Funds Other Assets IB Deposits $152 $152 $146 149 147 $152 $152 $146 $149 $147 11 9 9 12 11 9 13 16 17 16 16 19 18 18 18 83600 8 9 8 11 22 20 21 21 22 16 17 19 18 22 19 22 20 53 50 50 48 46 46 43 23 94 44 97 == 94 94 44 1Q20 2Q20 12 Non-interest bearing deposits ** Interest bearing deposits 92 92 53 55 51 19 53 33 55 55 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 Santander#13BORROWED FUNDS PROFILE Total funding of $43.4 in Q1, down 18% YoY Reduction in FHLB advances driven by significant deposit growth Third-party secured funding reduction facilitated by increase in off-balance sheet securitizations 13 Total Funding ($ in Billions) $53.0 $49.9 $48.1 9.0 2.0 $46.4 5.4 4.0 $43.4 4.0 3.1 1.2 4.0 1Q21 4Q20 1Q20 9.4 0.9 QoQ (%) YoY (%) 11.0 10.9 10.9 10.5 Senior Unsecured Debt 10.5 10.9 9.4 (3.0) 11.6 FHLB Advances 0.9 1.2 9.0 (24.9) (90.4) Third-Party Secured Funding 2.3 4.2 6.5 (43.5) (64.0) 34.6 31.5 30.1 30.3 28.0 Amortizing Notes 5.7 7.2 9.9 (21.7) (42.7) Public Securitizations 20.0 18.9 18.2 5.7 10.3 SC - BSSA 4.0 4.0 0.0 Flat NA 1Q20 2Q20 3Q20 4Q20 1Q21 Total SHUSA Funding 43.4 46.4 53.0 (6.3) (18.0) SC Holdco ISBNA SC - BSSA Santander#14SHUSA DEBT & TOTAL LOSS-ABSORBING CAPACITY Total Loss-Absorbing Capacity ("TLAC") As of Q1 2021, SHUSA met the Federal Reserve's TLAC and long-term debt ("LTD") requirements1, with 24.4% TLAC, 7.4% eligible LTD1 and a CET1 ratio² of 17.0%. Debt Maturity Schedule² ($ In Billions) $3.1 $0.5 5.827% $2.1 $1.0 3.40% $1.8 $1.0 $1.1 $0.4 3.50% $0.8 3.45% 2.875% $1.0 $0.9 $0.5 $0.7 3.70% $1.2 3ML+110bps $1.0 3.50% $1.1 4.50% $0.9 3.224% $1.0 4.40% $0.5 4.45% $0.4 3ML*+100bps 2021 2022 2023 2024 2025 2026 2027 Private placement Public issuance ■Internal TLAC 14 1 SHUSA's requirement is 20.5% for TLAC and 6.0% for LTD as a percentage of risk-weighted assets 2 Senior debt issuance, unless otherwise noted 3 Month Libor ("3ML") Santander#15CAPITAL RATIOS CET1 increase driven by improved credit performance, strong net income and asset sales 15 CET1 17.0% 15.9% 15.4% 14.3% 14.3% TIER 1 LEVERAGE RATIO 14.2% 13.8% 13.2% 12.6% 12.5% 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 TIER 1 RISK-BASED CAPITAL RATIO 18.6% 17.4% 16.9% 15.7% 15.3% TOTAL RISK-BASED CAPITAL RATIO 20.0% 18.8% 18.3% 17.1% 16.7% 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 Santander#16SBNA ASSET QUALITY Strong credit performance in Q1 due to substantial drop in net charge-offs and improved macroeconomic outlook. ALLL* coverage ratio remains relatively stable. ANNUALIZED NET CHARGE-OFF RATIO 0.57% 0.45% 0.48% 0.33% 0.25% NONPERFORMING LOAN ("NPL") RATIO 0.96% 0.89% 0.78% 0.75% 0.67% 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 ALLL TO TOTAL LOANS RESERVE COVERAGE (ALLL/NPL) 300.6% 2.19% 2.25% 2.22% 281.8% 2.09% 270.1% 248.8% 1.80% 219.1% 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 16 Allowance for loan and lease losses ("ALLL") Santander#17SC AUTO ORIGINATIONS Record Q1 auto originations of $8.6 billion, up 24% YoY Penetration rate of 36% with Stellantis, down 270bps due to lower exclusive incentives YoY Three Months-Ended Originations % Variance ($ in Millions) Q1 2021 Q4 2020 Q1 2020 QoQ YOY Total Core Retail Auto 2,797 $ 2,482 2,306 13% 21% Chrysler Capital Loans (<640)1 1,317 1,141 1,190 15% 11% Chrysler Capital Loans (≥640)1 2,343 1,863 1,432 26% 64% Total Chrysler Capital Retail 3,660 3,005 2,622 22% 40% Total Leases² Total Auto Originations³ 2,157 1,960 2,024 10% 7% EA 8,614 7,446 6,951 16% 24% SBNA Originations4 SA 1,977 $ EA 1 Approximate FICOS 2 Includes nominal capital lease originations 17 3 Includes SBNA originations 4 Asset sales and SBNA originations remain off SC's balance sheet in the serviced-for-others portfolio 1,531 $ 1,081 29% 83% Santander#18SC DELINQUENCY AND LOSS Delinquency Ratios: 30-59 Days Delinquent, RICS, HFI * 8.3% 6.0% 5.0% 4.3% 4.4% Delinquency Ratios: >59 Days Delinquent, RICS, HFI* Delinquencies and charge-offs remain low due to disciplined underwriting, government stimulus and strong used vehicle prices Early stage delinquencies decreased 390 bps YoY 4.6% 3.1% 2.4% 2.4% 2.2% Late stage delinquencies decreased 240 bps YoY Gross Charge-off Rates 15.5% 11.1% 9.9% 9.7% 6.8% SC Recovery Rates¹ (% of Gross Loss) 50.1% 45.7% Net Charge-off Rates² 7.7% 6.0% 91.4% 69.1% 64.2% 3.5% 3.0% 0.6% 1Q 2020 2Q 2020 Q3 2020 Q4 2020 1Q 2021 18 * Retail installment contracts ("RICS"), held-for-investment ("HFI") 1 Recovery Rate - Includes insurance proceeds, bankruptcy/deficiency sales, and timing impacts 2 Net charge-off rates on RICS, loans held-for-investment ("LHFI") Gross charge-off rate decreased 580 bps YoY SC's Q1 recovery rate of 69% remains elevated due to low gross losses and continued strength in wholesale auction prices Net charge-off rate decreased 470 bps YoY Santander#19RATING AGENCIES SHUSA and SBNA ratings impacted by the overall ratings of Santander 19 Negative outlook Fitch Ratings (June 30, 2020) SR. DEBT RATINGS BY SANTANDER ENTITY Santander¹ A SHUSA BBB+ SBNA BBB+ Santander¹ A2 Stable outlook MOODY'S. SHUSA Baa3 (April 22, 2020) SBNA² Baa1 Santander1 A STANDARD & POOR'S Negative outlook (July 10, 2020) SHUSA BBB+ SBNA A- 1 Senior preferred rating SBNA long-term issuer rating Santander#20APPENDIX Work/ Cale Personal Simple Fair Santander#21CONSOLIDATING INCOME STATEMENT For the three-month period ended March 31, 2021 ($ in Millions) Interest income Interest expense Net interest income Fees & other income/(expense) SBNA SC Other (1) IHC Entities (2) SHUSA 532 $ 1,361 $ 6 26 1,925 (32) (254) (18) (2) (306) SA 500 $ SA 1,107 SA (12) SA 24 1,619 135 906 $ SA (19) 153 1,175 Other non-interest income 10 10 Net revenue/(loss) $ 645 $ 2,013 SA $ (31) $ 177 2,804 General, administrative and other expenses (511) Provision for credit losses 60 (901) (136) (33) (103) (1,548) (76) Income/(loss) before taxes S 194 S 976 69 $ (64) $ 74 S9 $ 1,180 Income tax (expense)/benefit Net income/(loss) (37) (234) (16) (287) 157 742 (64) 58 893 Less: Net income attributable to NCI (3) 145 145 Net income attributable to SHUSA 157 597 (64) 58 748 21 1 Includes holding company activities, IHC eliminations, and eliminations and purchase accounting marks related to SC consolidation. 2 3 The entities acquired in the formation of the IHC are presented within "other" in SHUSA's financial statement segment presentation due to immateriality. SHUSA net income includes NCI. Santander#22CONSOLIDATING BALANCE SHEET ($ in Millions, unaudited) March 31, 2021 Assets SBNA SC Other (1) IHC Entities (2) SHUSA Cash and cash equivalents $ 10,366 $ 416 $ (374) $ 1,059 $ 11,467 Investments available-for-sale at fair value 11,215 96 155 11,466 Investments held-to-maturity 4,981 129 672 5,782 Other investment securities (3) 772 4 1 1,001 1,778 LHFI 54,629 32,090 (36) 4,376 91,059 Less ALLL Total Loans HFI, net Goodwill Other assets (1,153) (6,005) (2) (7,160) 53,476 $ 26,085 SA (36) 4,374 $ 83,899 1,554 74 968 2,596 6,545 20,430 Total assets $ EA 88,909 $ 47,234 $ SA SA (710) 3,337 29,602 (151) $ 10,598 $ 146,590 Liabilities and Stockholder's Equity Deposits 73,304 (4,224) 5,369 74,449 Borrowings and other debt obligations 1,263 38,542 3,634 7 43,446 Other liabilities 2,454 2,460 (1,104) 2,944 6,754 Total liabilities 77,021 $ 41,002 (1,694) 8,320 $ 124,649 Stockholder's equity, including NCI 11,888 6,232 1,543 2,278 21,941 Total liabilities and stockholder's equity 88,909 $ 47,234 (151) $ 10,598 $ 146,590 22 222 1 Includes holding company activities, IHC eliminations, and eliminations and purchase accounting marks related to SC consolidation. 2 The entities acquired in the formation of the IHC are presented within "other" in SHUSA's financial statement segment presentation due to immateriality. 3 Other investment securities include trading securities. Santander#23SHUSA: QUARTERLY TRENDED STATEMENT OF OPERATIONS ($ in Millions) Interest income Interest expense NII 1Q20 2Q20 3Q20 4Q20 1Q21 $ 2,110 $ 1,968 $ 1,991 $ 1,951 $ 1,925 (524) (429) (370) (338) (306) EA 1,586 $ 1,539 $ 1,621 $ 1,613 $ 1,619 Fees & other income Other NII Net revenue General, administrative, and other expenses Provision for credit losses Income before taxes Income tax (expense)/benefit 1,018 764 1,175 962 1,175 9 23 10 2,613 $ 2,326 $ 2,796 $ 2,575 $ 2,804 (1,583) (3,431) (1,568) (1,626) (1,548) (1,186) (977) (406) (299) (76) EA (156) $ (2,082) $ 822 $ 650 $ 1,180 33 186 53 (162) (287) Net income (123) (1,896) 875 488 893 Less: Net income attributable to NCI 4 (23) 102 102 145 Net income attributable to SHUSA (127) (1,873) 773 386 748 NIM 23 23 1Q20 2Q20 3Q20 4Q20 1Q21 5.3% 4.9% 5.3% 5.3% 5.3% Santander#24SHUSA: NON-GAAP RECONCILIATIONS ($ in Millions) 1Q20 2Q20 3Q20 4Q20 1Q21 SHUSA pre-tax pre-provision income Pre-tax income, as reported Provision for credit losses Pre-tax pre-provision Income CET 1 to risk-weighted assets CET 1 capital Risk-weighted assets Ratio (156) $ (2,082) $ 822 $ 650 $ 1,180 1,186 977 406 299 76 SA $ 1,030 (1,105) 1,228 949 1,256 17,113 $ 17,173 $ 17,921 $ 18,368 $ 19,020 120,055 14.3% 119,862 14.3% 116,060 15.4% 115,206 111,868 15.9% 17.0% Tier 1 leverage Tier 1 capital 18,311 18,825 $ Avg total assets, leverage capital purposes 144,758 Ratio 12.6% 151,148 12.5% 19,570 $ 148,387 13.2% 20,048 $ 20,809 145,623 146,589 13.8% 14.2% Tier 1 risk-based Tier 1 capital Risk-weighted assets Ratio 24 24 $ 18,311 $ 120,055 15.3% 18,825 $ 119,862 15.7% 19,570 $ 20,048 $ 20,809 116,060 16.9% 115,206 111,868 17.4% 18.6% Risk-based capital Risk-weighted assets Ratio $ 20,007 $ 120,055 16.7% 20,502 $ 119,862 17.1% 21,190 $ 116,060 18.3% 21,659 $ 22,370 115,206 111,868 18.8% 20.0% Total risk-based Santander#25SBNA: QUARTERLY PROFITABILITY NET INTEREST INCOME ($M) PRE-TAX PRE-PROVISION INCOME ($M)1 $508 $502 $515 506 500 $134 $149 $86 $134 2.72% 1Q20 2Q20 3Q20 4Q20 1Q21 2.54% 2.65% 2.58% 2.51% 1Q20 2Q20 3Q20 4Q20 1Q21 PRE-TAX INCOME ($M)1 $(1,687) NET INCOME/(LOSS) ($M)1 $194 $157 $81 $40 $48 $14 $(121) $(79) 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 $(1,953) 25 1 Includes non-recurring goodwill impairment in Q2 2020 $(1,755) Santander#26SBNA: QUARTERLY TRENDED STATEMENT OF OPERATIONS EA 1Q20 665 $ (157) 2Q20 3Q20 4Q20 1Q21 591 $ 572 $ 549 $ 532 (89) (57) (43) (32) 508 $ 502 $ 515 $ 506 $ 500 135 132 151 145 135 11 22 10 654 $ 656 $ 666 $ 651 $ 645 (520) (2,343) (517) (565) (511) (255) (266) (68) (46) 60 (121) $ (1,953) $ 81 $ 40 $ 194 42 198 (33) (26) (37) (79) $ (1,755) $ 48 $ 14 $ 157 EA EA 69 ($ in Millions) Interest income Interest expense Net interest income Fees & other income Other non-interest income Net revenue General, administrative & other expenses Release of/(provision for) credit losses Income before taxes Income tax expense Net income/(loss) Net interest margin before provision 26 26 1Q20 2Q20 3Q20 4Q20 1Q21 2.7% 2.5% 2.7% 2.6% 2.5% Santander#27SBNA: QUARTERLY AVERAGE BALANCE SHEET 1Q21 4Q20 QoQ Change 1Q20 Average Balance Yield/ Rate Average Balance Yield/ Rate Average Yield/ Average Yield/ Balance Rate Balance Rate ($ in Millions) Assets Deposits and investments $ 24,937 0.86% $ 23,621 1.02% $ 1,316 (0.16%) $ 19,703 2.05% Loans 54,811 3.49% 54,913 3.56% (102) (0.07%) 55,011 4.10% Allowance for loan losses (1,205) --- (1,239) 34 (886) Other assets 8,755 8,939 (184) 10,311 Total assets $ 87,298 2.44% $ 86,234 2.55% $ 69 1,064 (0.11%) $ 84,139 3.16% Liabilities and stockholder's equity IB demand deposits $ NIB demand deposits Savings Money market 11,049 17,669 4,989 0.05% $ 10,245 0.06% $ 804 (0) $ SA 8,817 0.48% 17,405 264 12,206 0.04% 4,685 0.04% 304 0.00% 3,777 0.07% 34,665 0.21% 33,842 0.29% 823 (0.08%) 28,648 1.02% Certificates of deposit 3,341 1.17% 3,863 1.40% (522) (0.23%) 7,723 1.74% Borrowed funds 1,109 0.63% 1,466 0.64% (357) (0.01%) 6,910 2.26% Other liabilities 2,473 2,705 (232) 2,385 Equity 12,003 12,023 $ (20) 13,673 Total liabilities and stockholder's equity $ 87,298 0.15% $ 86,234 0.20% $ 1,064 (0.05%) $ 84,139 0.74% NIM 2.51% 2.58% (0.07%) 2.72% 27 27 Santander#28SBNA: FUNDING - DEPOSITS 28 AVERAGE NON-MATURITY DEPOSIT BALANCES 1,2 ($B) Non-Maturity Deposit Balances Avg. Interest Cost $64.5 $62.0 $59.4 $56.7 $50.7 0.64% 0.28% 0.22% 0.17% 0.12% AVERAGE TOTAL DEPOSIT BALANCE 1,2 ($B) Total Deposits Avg. Interest Cost $67.8 $65.9 $64.4 $62.6 $58.4 0.78% 0.40% 0.31% 0.24% 0.17% 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 1 Represents average quarterly balances. 2 SBNA total deposits less the SHUSA cash deposit held at SBNA. Santander#29SBNA: ASSET QUALITY NPLs 526 493 443 414 370 CRITICIZED BALANCES¹ Criticized Balances Criticized Ratio 3,737 3,343 2,760 2,822 2,069 6.8% 6.1% 5.1% 4.8% 3.7% 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 DELINQUENCY² 0.75% 0.67% 0.55% 0.50% TEXAS RATIO3 6.79% 6.00% 5.02% 5.16% 4.41% 0.39% 1Q20 2Q20 3Q20 4Q20 1Q21 29 1 Criticized loans that are categorized as special mention, substandard, doubtful, or loss 2 Delinquency accruing loans 30-89 days past due ("DPD") plus accruing loans 90+ DPD 3 See page 37 for non-GAAP measurement reconciliation of Texas Ratio 1Q20 2Q20 3Q20 4Q20 1Q21 Santander#30SBNA: ASSET QUALITY (CONTINUED) Outstandings* NPLs to Total Loans MORTGAGES Net Charge-Offs HOME EQUITY $4.5 $7.8 $7.6 $4.4 $7.2 $6.9 $6.4 $4.2 $4.0 $3.9 1.5% 1.1% 0.7% 0.8% 0.8% 2.0% 2.2% 2.1% 2.1% 2.2% (-0.2%) (-0.2%) (-0.2%) 0.0% 0.0% (0.1%) (0.1%) 0.1% 0.0% 0.0% 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 CRE1 SANTANDER REAL ESTATE CAPITAL ("SREC") $8.4 $8.4 $8.2 $7.9 $7.7 $6.2 $6.1 $6.0 $5.9 $5.7 1.2% 1.3% 0.7% 0.8% 0.5% 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 30 1 CRE is comprised of the commercial real estate and continuing care retirement communities business segments (SREC segment included in separate graph) Dollars in billions Santander#31SBNA: ASSET QUALITY (CONTINUED) Outstandings* COMMERCIAL BANKING1 NPLs to Total Loans CIB Net Charge-Offs $15.0 $7.4 $14.6 $14.1 $14.4 $14.0 $6.5 $6.4 $6.3 $6.0 0.9% 0.8% 0.9% 1.1% 1.3% 0.4% 0.6% 0.3% 0.1% 0.2% 0.7% 0.7% 0.7% 0.8% 0.6% 0.3% 0.1% 0.1% 0.1% 0.1% 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 OTHER CONSUMER² $1.3 $1.2 $1.2 $1.1 $1.1 INDIRECT AUTO³ $9.4 $8.5 $7.9 $7.6 $6.7 0.9% 1.0% 0.9% 0.8% 5.5% 5.6% 5.4% 0.6% 5.3% 4.6% 0.5% 0.6% 0.6% 0.6% 0.5% 1.6% 1.7% 1.5% 1.2% 1.0% 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 1 Commercial Banking = Equipment Finance & Leasing, Commercial Equipment Vehicle Finance-Strategic, Financial Institutions Coverage, International Trade Banking, Middle Market, Asset Based Lending, Institutional-NonProfit, Government Banking, Life Sciences & Technology, Professional & Business Services, Energy Finance, Mortgage Warehouse, Other Non-Core Commercial, Chrysler Auto Finance, Footprint Dealer Floorplan and Commercial Banking Not Classified Elsewhere and all other Commercial Business segments. 31 2 Other Consumer = Direct Consumer, Indirect Consumer, RV/Marine, Credit Cards, SFC, & Retail run-off 3 Indirect Auto Origination program assets through SC, full roll-out in Q2'18 Dollars in billions Santander#32SBNA: CAPITAL RATIOS CET1 TIER 1 LEVERAGE RATIO 15.7% 15.2% 15.4% 15.7% 16.1% 12.6% 12.1% 12.1% 12.1% 11.7% 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 TIER 1 RISK-BASED CAPITAL RATIO TOTAL RISK-BASED CAPITAL RATIO 15.7% 15.2% 15.4% 15.7% 16.1% 16.8% 16.4% 16.6% 16.9% 17.4% 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 32 Capital ratios through March 31, 2020 calculated under the U.S. Basel III framework on a transitional basis. Capital ratios starting in the first quarter of 2020 calculated under Current Expected Credit Losses ("CECL") transition provisions permitted by the Coronavirus Aid, Relief, and Economic Security ("CARES") Act. Santander#33SC AUTO MONTHLY ORIGINATIONS Core Retail Auto ($ in Millions) $1,400 Chrysler Capital Lease ($ in Millions) $1,000 $800 $1,200 $1,000 $800 $600 $400 $200 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec '20 v '21 YoY 5% 3% 52% '19 v '21 YoY 1% -11% 26% Chrysler Capital Loans, <6401 ($ in Millions) $600 $400 $200 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec '20 v '21 YoY -8% -12% 47% '19 v '21 YoY 5% 2% 20% Chrysler Capital Loans, ≥6401 ($ in Millions) $700 $600 $500 $400 $300 $200 $100 $0 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec '20 v '21 YoY -6% -6% 41% '19 v '21 YoY -12%-18% 24% '20 v '21 YoY '19 v '21 YoY Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 9% 68% 126% 33% 104%228% -2019 -2020 -2021 33 1 Approximate FICOS Santander#34SC AUTO LOSS & RECOVERY RATIOS (ANNUALIZED) Gross Charge-off Ratio (%) 25.0% 20.0% 15.0% 10.0% 5.0% Recovery Rates (% of Gross Loss) 125.0% 100.0% 75.0% 50.0% 25.0% 0.0% 0.0% Jan Feb Mar Apr May Jun 2019 22.3 19.1 17.0 16.1 16.1 2020 17.2 15.6 13.7 12.9 12.6 2021 10.3 9.4 9.4 Jul Aug Sep Oct Nov Dec 15.8 17.9 18.4 18.5 18.3 17.1 16.1 8.1 6.7 5.5 7.9 9.5 9.5 10.7 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 49.0 54.6 66.1 62.5 62.4 56.0 55.2 59.2 53.2 52.9 57.5 46.2 2020 46.0 53.0 52.1 32.1 49.1 62.1 81.7 126.1 76.4 78.2 60.5 54.8 2021 58.9 63.1 86.8 34 =4 Net Charge-off Ratio (%) 15.0% 12.0% 9.0% 6.0% 3.0% 0.0% -3.0% Jan Feb Mar 2019 11.3 8.7 5.8 2020 9.3 7.3 6.6 2021 4.2 3.5 1.2 Apr May Jun 6.1 6.1 7.0 8.7 6.4 3.1 Jul Aug Sep 8.0 7.5 8.6 1.2 -1.4 1.9 Oct Nov Dec 8.6 7.3 8.7 2.1 3.7 4.8 2019 2020 -2021 Santander#3535 55 SBNA: NON-GAAP RECONCILIATIONS ($ in Millions) 1Q20 2Q20 3Q20 4Q20 1Q21 SBNA pre-tax pre-provision income Pre-tax income, as reported (121) $ (1,953) $ 81 $ 40 $ 194 (Release of)/provision for credit losses 255 266 68 46 (60) Pre-tax pre-provision income $ 134 (1,687) 149 86 134 CET1 to risk-weighted assets CET1 capital EA Risk-weighted assets Ratio 10,173 $10,168 $ 10,219 $ 10,267 $ 10,394 64,971 67,065 66,507 15.7% 15.2% 15.4% 65,520 15.7% 64,521 16.1% Tier 1 leverage Tier 1 capital 10,173 $ 10,168 Avg total assets, leverage capital purposes 80,825 86,547 Ratio 12.6% 11.7% $ 10,219 84,264 12.1% $ 10,267 $ 10,394 84,620 85,690 12.1% 12.1% Tier 1 risk-based Tier 1 capital Risk-weighted assets Ratio 10,173 $10,168 $ 10,219 64,971 67,065 66,507 15.7% 15.2% 15.4% $ 10,267 $ 10,394 65,520 64,521 15.7% 16.1% Total risk-based Risk-based capital Risk-weighted assets Ratio $ 10,930 $ 11,005 $11,050 $ 11,085 $11,199 65,520 64,521 64,971 67,065 66,507 16.8% 16.4% 16.6% 16.9% 17.4% Santander#36SBNA: NON-GAAP RECONCILIATIONS (cont.) 36 SBNA Texas Ratio ($ in Millions) Total equity Goodwill and other intangibles Allowance for loan losses Total equity and loss allowances for Texas Ratio Nonperforming assets 1Q20 2Q20 3Q20 4Q20 1Q21 $ 14,014 $ 12,306 $ 12,307 $ 12,280 $ 12,222 (3,637) (1,788) (1,789) 999 1,249 1,244 (1,787) (1,784) 1,226 1,153 $ 11,376 $ 11,767 $ 11,762 $ 11,719 $ 11,591 SA 384 $ 453 $ 424 $ 502 $ 537 90+ DPD accruing 6 6 5 3 3 Accruing troubled debt restructurings 112 132 178 198 247 Total nonperforming assets $ 502 $ 591 $ 607 $ 703 $ 787 Texas ratio 4.4% 5.0% 5.2% 6.0% 6.8% Santander#37THANK YOU Our purpose is to help people and businesses prosper. 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