Financial Review Quarter 3 2023

Santander Portugal's transformation drove increased customer loyalty and transactions, as well as one of the best efficiency ratios Financial System The increase in interest rates is starting to impact demand for loans, with new loan originations declining to the lowest levels since early 2020, both for mortgages and corporate loans ▸ Deposits are growing at a slower pace, as households and non-financial corporates begin to use their savings to pay down loans. Households are also diversifying part of their savings into Government Savings Certificates, which have higher interest rates than deposits Strategy & Business ▸ Continue to implement our transformation plan with the aim of improving service quality and increasing our customer base ▸ Grow organically in terms of profitable market share and with adequate capital remuneration ▸ Maintain our position as market leaders in efficiency, improving the cost base ▸ Maintain an appropriate risk policy with high credit quality and strong capital position 001 Results ▸ Double-digit growth in total income supported by strong NII performance reflecting higher interest rates and low deposit betas Net operating income grew strongly on the back of improved efficiency (-12pp) as revenue grew much faster than costs Credit fundamentals remained robust and NPL ratio continued to reduce. LLPs and CoR remain well under control despite increased due to very low levels in 2022 ▸ Profit increased YoY driven by higher revenue on the back higher net operating income supported by NII growth and tight risk management Santander 18

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