2022 Highlights and ESG Progress

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 + amortizations 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 risk: Allowances for loan-loss provisions over the last 12 months / average loans and advances to customers 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 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 53

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