Q1'21 Earnings Presentation

Concluding remarks The pandemic still weights on earnings as we progress in key initiatives and maintain a strong balance sheet and liquidity Contraction in system loan volumes in most segments, except mortgages and government ▸ Consumer loans continued to contract, especially credit cards and personal loans Financial System ‣ System deposit growth still low double-digits Strategy & Business Results Santander Lower interest rates favour strong growth in demand deposits, likely reflecting heightened need for liquidity among households and companies ▸ Continued focus on loyalty and digitalization to improve customer experience Well positioned with strong capital and liquidity levels Lower loan portfolio YoY, as corporate loans began to normalize following the uptick at the beginning of the pandemic and lower activity during lockdown. Customer funds increase was boosted by demand deposits from individuals Total income reduction YoY as pressure on NII was not fully offset by the increase in fee income and gains on financial transactions ▸ Operating expenses increased slightly in nominal terms mainly driven by technology investment and amortizations. In real terms, costs fell 3% Loan-loss provisions dropped 7% YoY despite charges recorded for certain corporate customers ▸ Profit down YoY impacted by pressure on NII, which more than offset the positive performance of LLPs 22

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