Santander Financial Overview 2023

Higher interest rates contributed to the early redemption of loans and subsequent decline in the deposit base Total loans (€ bn) 231.9 232.8 230.4 230.7 228.8 3.2 YOY (%) 3.0 2.5 1.6 0.4 Mar-22 Jun-22 Sep-22 Dec-22 Feb-23 Total customer deposits (€ bn) 287.5 287.7 279.6 291.4 283.9 8.9 8.5 YOY 7.1 6.4 (%) 3.3 Mar-22 Jun-22 Sep-22 Dec-22 Feb-23 The increase in interest rates is starting to impact demand for loans, with new loan origination levels declining to the lowest levels since early 2020, both for mortgages and corporate loans. Both households and non-financial corporations are beginning to redeem their loans early, as financing costs, mostly at floating rate, rise in line with higher interest rates. Asset quality remains at historically low levels. 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 saving products (Saving Certificates), with have a higher remuneration than deposits. Santander Source: Statistics Portugal, Ministry of Finance, Santander Portugal forecasts and estimates. UT 5

View entire presentation