Q1 2023 Financial Report

00 Concluding remarks 00Û Financial System Loan growth slowed to 1%. Loans to businesses performed well (+6%) mainly due to elevated demand for working capital. Loans to households fell by 5% (FX-adjusted) in February, driven by lower mortgage originations and elevated repayments ▸ New business for consumer loans and rising number of mortgage loan applications may deliver on stronger growth rates in the coming quarters ▸ Deposits grew 9% in February, primarily fuelled by time deposits (+96%), while the volume of demand deposits continued to decrease (-10%) Strategy & Business ▸ Strengthen customer engagement to achieve a strong top 3 NPS position in a highly competitive market ▸ Improving employee experience implementing initiatives that support employee well-being, building a supportive and inclusive work environment We continue optimizing the sales network, changing branch model in favour of cashless service and supporting customer use of remote channels. We are also simplifying the language used in communication with customers (in contracts and daily messages) Results Revenue up supported by strong NII, boosted by commercial activity, higher interest rates and tight cost of deposit management Strong net operating income performance on the back of higher revenue as well as 5pp efficiency improvement, absorbing inflationary pressures ▸ Credit quality remained solid. LLPs rose sharply YoY due to higher CHF mortgage claims ▸ Double-digit profit increase following our strategy based on increasing volumes and revenue, while keeping costs controlled as well Santander 21

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