Retail Banking Performance Update

Glossary - Definitions PROFITABILITY AND EFFICIENCY ✓ ✓ ROTE: Return on tangible capital: Group attributable profit/ average of: net equity (excluding minority interests) - intangible assets (including goodwill) 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 Loans: Gross loans and advances to customers (excl. reverse repos) Customer funds: Customer deposits excluding repos + marketed mutual funds CREDIT RISK ✓ 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 Total 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 credit: 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 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 DIGITAL ✓ Digital customers: every physical or legal person, that, being part of a commercial bank, has logged in its personal area of internet banking or mobile phone or both in the last 30 days Transactions monetary & voluntary: customer interaction through mobile or internet banking which resulted in a change of balance. ATM transactions are not included Digital sales: percentage of new contracts executed through digital channels during the period. Digital sales as % of total sales Notes: The averages for the ROTE and RoRWA denominators are calculated using 13 months from December to December. For periods less than one year, and if there are results in the net capital gains and provisions line, the profit used to calculate RoE and RoTE is the annualized underlying attributable profit to which said results are added without annualizing. For periods less than one year, and if there are results in the net capital gains and provisions line, the profit used to calculate RoA and RoRWA is the annualized underlying consolidated profit, to which said results are added without annualizing. 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). Santander 72 12

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