Santander Financial Performance Update
ALLOWANCE FOR CREDIT LOSSES ("ACL")
Strong credit performance, including lower gross and net charge-offs and improving
macroeconomic conditions led to lower reserves QoQ, allowance ratio stable
March 31,
December 31,
March 31,
Allowance Ratios
(Dollars in Millions)
2021
2020
(Unaudited)
(Audited)
2020
(Unaudited)
Total loans held for investment
("LHFI")
$91,059
$92,133
$93,006
Total ACL1
Total Allowance Ratio
$7,285
$7,485
$6,794
8.0%
8.1%
7.3%
Under the Federal Reserve's December 2020 stress test (Severely Adverse Scenario):
Q1 2021 ending ACL represents ~81% of stress test losses
SHUSA's stressed capital ratio of 14.4% ranked in the top quartile among participating banks
PPNR of $7.2 billion (4.7% of average assets) ranked in the top quartile among participating banks
8
1 | Includes ACL for unfunded commitments
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