2023 Highlights Digital Consumer Bank Europe
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Glossary - Definitions
PROFITABILITY AND EFFICIENCY
ROTE: Return on tangible capital: Group attributable profit/ average of: net equity (excluding minority interests) - intangible assets (including goodwill)
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RoRWA: Return on risk-weighted assets: consolidated profit/ average risk-weighted assets
Efficiency: Operating expenses / total income. Operating expenses defined as general administrative expenses + amortisations
VOLUMES
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Loans: Gross loans and advances to customers (excl. reverse repos)
Customer funds: Customer deposits excluding repos + marketed mutual funds
CREDIT RISK
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NPL ratio: Credit impaired loans and advances to customers, customer guarantees and customer commitments granted / Total risk. Total risk is defined as: Total loans and advances and
guarantees to customers (including credit impaired assets) + contingent liabilities granted that are credit impaired
NPL coverage ratio: Total allowances to cover impairment losses on loans and advances to customers, customer guarantees and customer commitments granted / Credit impaired
loans and advances to customers, customer guarantees and customer commitments granted
Cost of risk: Provisions to cover losses due to impairment of loans in the last 12 months / average customer loans and advances of the last 12 months
CAPITALIZATION
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Tangible net asset value per share - TNAVps: Tangible stockholders' equity / number of shares (excluding treasury shares). Tangible stockholders' equity calculated as shareholders
equity + accumulated other comprehensive income - intangible assets
ESG METRICS
Green Finance raised and facilitated = Nominal amount of PF, PF Advisory, PF bonds, Green bonds, ECA, M&A, ECM transactions classified by SCFS panel and reported in the League
Tables since the beginning of the exercise.
SRI = Volume of assets under management classified as article 8 - promoting ESG objectives - and 9 - with explicit sustainability objectives - of the SFDR regulation (EU Reg. 2019/2088).
Includes assets managed by Santander Asset Management (SAM), third-party funds and SAM funds managed with equivalent criteria in those geographies where SFDR does not apply
(mainly LatAm).
Financial inclusion (# People) = Number of people who are unbanked, underbanked, in financial difficulty, with difficulties in accessing credit or with limited financial literacy who,
through the Group's products, services and social investment initiatives, are able to access the financial system, 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 programs 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.
Santander Notes: The averages for the ROTE and RoRWA denominators are calculated using the monthly average over the period, which we believe should not differ materially from using daily balances.
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).
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