US Q1'22 Earnings Presentation - 26 April 2022 - Santander Group
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26 April 2022 US Q1’22 Earnings Presentation
Important Information
Non-IFRS and alternative performance measures
This presentation contains, in addition to the financial information prepared in accordance with International Financial Reporting Standards (“IFRS”) and derived from our financial statements, alternative
performance measures (“APMs”) as defined in the Guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority (ESMA) on 5 October 2015 (ESMA/2015/1415en) and
other non-IFRS measures (“Non-IFRS Measures”). These financial measures that qualify as APMs and non-IFRS measures have been calculated with information from Santander Group; however those financial
measures are not defined or detailed in the applicable financial reporting framework nor have been audited or reviewed by our auditors. We use these APMs and non-IFRS measures when planning, monitoring
and evaluating our performance. We consider these APMs and non-IFRS measures to be useful metrics for our management and investors to compare operating performance between accounting periods, as
these measures exclude items outside the ordinary course performance of our business, which are grouped in the “management adjustment” line and are further detailed in Section 3.2 of the Economic and
Financial Review in our Directors’ Report included in our Annual Report on Form 20-F for the year ended 31 December 2021. Nonetheless, these APMs and non-IFRS measures should be considered supplemental
information to, and are not meant to substitute IFRS measures. Furthermore, companies in our industry and others may calculate or use APMs and non-IFRS measures differently, thus making them less useful
for comparison purposes. For further details on APMs and Non-IFRS Measures, including its definition or a reconciliation between any applicable management indicators and the financial data presented in the
consolidated financial statements prepared under IFRS, please see the 2021 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (the “SEC”) on 1 March 2022, as updated by the
Form 6-K filed with the SEC on 8 April 2022 in order to reflect our new organizational and reporting structure, as well as the section “Alternative performance measures” of the annex to the Banco Santander, S.A.
(“Santander”) Q1 2022 Financial Report, published as Inside Information on 26 April 2022. These documents are available on Santander’s website (www.santander.com). Underlying measures, which are
included in this presentation, are non-IFRS measures.
The businesses included in each of our geographic segments and the accounting principles under which their results are presented here may differ from the included businesses and local applicable accounting
principles of our public subsidiaries in such geographies. Accordingly, the results of operations and trends shown for our geographic segments may differ materially from those of such subsidiaries.
Forward-looking statements
Santander advises that this presentation contains “forward-looking statements” as per the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements may be identified by words like
“expect”, “project”, “anticipate”, “should”, “intend”, “probability”, “risk”, “VaR”, “RoRAC”, “RoRWA”, “TNAV”, “target”, “goal”, “objective”, “estimate”, “future” and similar expressions. Found throughout this
presentation, they include (but are not limited to) statements on our future business development, economic performance and shareholder remuneration policy. However, a number of risks, uncertainties and
other important factors may cause actual developments and results to differ materially from our expectations. The following important factors, in addition to others discussed elsewhere in this presentation,
could affect our future results and could cause materially different outcomes from those anticipated in forward-looking statements: (1) general economic or industry conditions of areas where we have
significant operations or investments (such as a worse economic environment; higher volatility in the capital markets; inflation or deflation; changes in demographics, consumer spending, investment or saving
habits; and the effects of the war in Ukraine or the COVID-19 pandemic in the global economy); (2) exposure to various market risks (particularly interest rate risk, foreign exchange rate risk, equity price risk and
risks associated with the replacement of benchmark indices); (3) potential losses from early repayments on our loan and investment portfolio, declines in value of collateral securing our loan portfolio, and
counterparty risk; (4) political stability in Spain, the United Kingdom, other European countries, Latin America and the US (5) changes in legislation, regulations, taxes, including regulatory capital and liquidity
requirements, especially in view of the UK exit of the European Union and increased regulation in response to financial crises; (6) our ability to integrate successfully our acquisitions and related challenges that
result from the inherent diversion of management’s focus and resources from other strategic opportunities and operational matters; and (7) changes in our access to liquidity and funding on acceptable terms, in
particular if resulting from credit spreads shifts or downgrade in credit ratings for the entire Group or significant subsidiaries.
2Important Information
Numerous factors could affect our future results and could cause those results deviating from those anticipated in the forward-looking statements. Other unknown or unpredictable factors could cause actual
results to differ materially from those in the forward-looking statements.
Forward-looking statements speak only as of the date of this presentation and are informed by the knowledge, information and views available on such date. Santander is not required to update or revise any
forward-looking statements, regardless of new information, future events or otherwise .
No offer
The information contained in this presentation is subject to, and must be read in conjunction with, all other publicly available information, including, where relevant any fuller disclosure document published by
Santander. Any person at any time acquiring securities must do so only on the basis of such person’s own judgment as to the merits or the suitability of the securities for its purpose and only on such information
as is contained in such public information having taken all such professional or other advice as it considers necessary or appropriate in the circumstances and not in reliance on the information contained in this
presentation. No investment activity should be undertaken on the basis of the information contained in this presentation. In making this presentation available Santander gives no advice and makes no
recommendation to buy, sell or otherwise deal in shares in Santander or in any other securities or investments whatsoever.
Neither this presentation nor any of the information contained therein constitutes an offer to sell or the solicitation of an offer to buy any securities. No offering of securities shall be made in the United States
except pursuant to registration under the U.S. Securities Act of 1933, as amended, or an exemption therefrom. Nothing contained in this presentation is intended to constitute an invitation or inducement to
engage in investment activity for the purposes of the prohibition on financial promotion in the U.K. Financial Services and Markets Act 2000.
Historical performance is not indicative of future results
Statements about historical performance or accretion must not be construed to indicate that future performance, share price or results (including earnings per share) in any future period will necessarily match or
exceed those of any prior period. Nothing in this presentation should be taken as a profit forecast.
Third Party Information
In particular, regarding the data provided by third parties, neither Santander, nor any of its administrators, directors or employees, either explicitly or implicitly, guarantees that these contents are exact, accurate,
comprehensive or complete, nor are they obliged to keep them updated, nor to correct them in the case that any deficiency, error or omission were to be detected. Moreover, in reproducing these contents by any
means, Santander may introduce any changes it deems suitable, may omit partially or completely any of the elements of this document, and in case of any deviation between such a version and this one,
Santander assumes no liability for any discrepancy.
The information included in this presentation for Santander Holdings USA, Inc. (“SHUSA”) has been prepared according to Spanish accounting criteria and regulation in a manner applicable to all subsidiaries of the
Santander Group and, as a result, it may differ from the information disclosed locally by SHUSA or Santander Bank. Any use of local (US GAAP) accounting will be noted where it occurs.
IRS Circular 230 Disclosure: Santander and its employees are not in the business of providing, and do not provide, tax or legal advice to any taxpayer outside Santander. Any statements in this communication as to
tax matters were not intended or written to be used, and cannot be used or relied upon, by any taxpayer for the purpose of avoiding tax penalties. Any taxpayer should seek advice based on the taxpayer's
particular circumstances from an independent tax advisor.
3Perimeter
Data shown throughout this presentation reflects information regarding Santander
Holdings USA, Inc. which includes Santander Bank N.A. (SBNA), Santander
Consumer USA Holdings Inc. (SC), Santander Investment Securities (SIS), Banco
Santander International (BSI Miami) and NY (Santander Investment Securities and
the NY Branch).
In March 2021, Grupo Santander sold an unsecured personal loan portfolio which
impacts P&L and Balance Sheet from 31 March 2021.
4Index
1 2 3 4 5
Financial Strategy and Results Concluding Appendix
system business remarks
5Loan demand has stabilized since the peak of the pandemic while YoY deposit growth
continues to be robust
Total loans (USD bn1)
12,000
10,369 10,397 10,476 10,866 10,988 20.0%
10,000 15.0%
Loan growth continues but still remains below pre-pandemic
8,000
4.6% 6.0% 10.0%
levels
YoY 6,000
0.3%
5.0%
(%) -3.2% -2.5%
4,000 0.0%
Q1 loan growth driven by commercial loans, while consumer
2,000 -5.0%
and real estate were relatively stable
- -10.0%
Mar-21 Jun-21 Sep-21 Dec-21 Mar-22
Total customer funds (USD bn1)
17,111 17,530 18,159 18,297
16,905
20,000
Despite lower QoQ growth, deposits still 8% higher than prior
40.0%
18,000 35.0%
year
16,000
30.0%
14,000
17.2%
25.0%
YoY
12,000
10,000 20.0%
(%) 11.7% 11.5%
9.5%
8,000
8.2%
15.0%
6,000
10.0%
4,000
5.0%
2,000
- 0.0%
Mar-21 Jun-21 Sep-21 Dec-21 Mar-22
Source: Federal Reserve data: "Assets and Liabilities of Commercial Banks in the United States - H.8” as of 15 April 2022 6
(1) Total Industry Gross Loans and Deposits per Federal Reserve dataIndex
1 2 3 4 5
Financial Strategy and Results Concluding Appendix
system business remarks
7Santander US combines a strong depositary base in the Northeast with its nationwide
auto finance, wealth management and corporate banking capabilities
KEY DATA Q1’22 YoY Var.
Strategic Priorities
1
Customer loans USD 115.7 bn +7.8%
Customer funds USD 109.5 bn +9.1% Positioned to deliver above cost of capital returns
across core businesses
Underlying att. profit USD 654 mn -9.1%
RoTE2 23.6% -2.4 pp
• Refocus the US on our market leading consumer
Efficiency ratio 44.1% +417 bps franchise
Deposits market share3 2.3% -2 bps
• Simplification: disciplined capital allocation.
Retail Auto Lending market share
4
4.0% (#6 in the US) Discontinuing home lending operations and
review certain C&I segments
Total customers 4.8 mn -6.9%
Digital customers 1.0 mn -0.1% • Synergies from 2021 strategic investments
Branches 488 -14.5%
(Crédit Agricole / Amherst Pierpont / SC USA
minority interests)5
Employees 15,544 -2.8%
(1) IFRS. Excluding reverse repos. Includes impact of an unsecured personal loan portfolio sale from 31 March 2021.
(2) Adjusted RoTE: adjusted based on Group’s deployed capital calculated as contribution of RWAs at 12%. Using tangible equity, RoTE is 12.4% 8
(3) Deposit market share as of 30/06/2021 from FDIC. Data available once a year (considering all states where Santander Bank operates).
(4) Source: J.D. Power Market Share Report for Q1’22 (includes Santander Consumer USA and Chrysler Capital combined).
(5) Acquisition of SCUSA minority interest closed on 31 January 2022. Acquisition of Amherst Pierpont received regulatory approval on 1 April 2022.Core businesses expected to generate through-the-cycle >15% RoTE1
Strategic focus 2022 US Targets
Market-leading consumer finance franchise funded by attractive
Consumer consumer deposits
~19%
Commercial Top 10 CRE and Multifamily lender RoTE1
CIB Global hub for capital markets and investment banking
~43%
CIB
Efficiency ratio
Wealth Leading brand in LatAm HNW leveraging connectivity with Group
Management
(1) Adjusted RoTE: adjusted based on Group’s deployed capital calculated as contribution of RWAs at 12%. 9Focused on retaining high-value customers while digitalizing our customer base
Total customers (mn)1 Loyal customers (mn) 2 Digital customers (mn) 2
-7% -6% 0%
5.1 4.8 0.38 0.36 1.0 1.0
Mar-21 Mar-22 Mar-21 Mar-22 Mar-21 Mar-22
Digital sales / total3: 17%
Total customers decreased driven by consumer auto: low new vehicle supply, lower originations and higher loan payoffs and consumer
ex-auto: attrition of low-value segments, the focus remains on deepening and growing high-value customers
Digital active customers in consumer ex-auto are flat, although mobile-active customers increased by 4% and digital active rate is up
from 65% to 66%
(1) Includes consumer and wealth management customers. 10
(2) Includes consumer ex-auto customers.
(3) YTD Data.Santander US: Business Unit Focus
23.5 25.6
571 544 20.6 21.4
514
Efficient Branch 488 488 CIB Portfolio 19.1
Network (USD bn)
Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22
87.2 87.8 89.4 88.1 94.4 24.4 24.1 23.1 23.0 23.2
Commercial 7.8 7.6 7.0
Funding Base 7.2 7.0
37.0 38.1 39.2 35.7 34.6 Portfolio
(USD bn)1 16.6 16.6 15.9 16.0 16.3
(USD bn)
Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22
Total Deposits Borrowings
CREVF C&I
73.7 74.9 74.3 75.5 74.4
39.9 40.1 41.0 41.1
35.1
Consumer 44.3 46.5 46.4 46.9 46.8
Wealth
Portfolio Management CAL
(USD bn)2 16.5 16.1 15.8 15.4 15.2 (USD bn)3
12.9 12.3 12.1 12.1 12.2
Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22
Other Consumer Leases Auto
Note: Balances calculated using IFRS accounting criteria excluding repos. 11
(1) Excludes repos.
(2) Excludes Corporate loans. Lease numbers are in US GAAP.
(3) Client assets and liabilities (“CAL”) represents customer deposits and securities (“AUMs”) and loans and letters of credit.Further embedding ESG to build a more responsible bank
Environmental: Social: building a Governance: doing
supporting the more inclusive business the right
green transition society way
USD 700 mn Carbon USD 501 mn USD 18.6 mn Risk Culture
share of auto invested in in charitable focuses on consumer protection,
portfolio in plug-in neutral affordable housing commitments cyber awareness, privacy
hybrid vehicles in own operations
>180 Diversity, Equity
USD 1.9 bn 100% entrepreneurs and Inclusion
renewable single-use plastics participated in Cultivate
framework
projects financed free Small Business program1
48% c. 440 k 24% ~58% 16.7%
electricity from financially
women in independent women on
renewable sources empowered people
senior positions directors Board
2019-2021
Note: 2021 data, unless otherwise stated 12
(1) Cultivate Small Business program began in 2017.Loans increased 8% YoY driven by growth in auto and CIB
Total customer loans (USD bn)1
Mar-22 Mar-21 YoY (%) QoQ (%)
110.9 113.0 115.7 Total Consumer 59.1 57.2 3.3 0.1
107.3 110.5
Auto 46.8 44.3 5.7 -0.1
Non-auto 12.2 12.9 -5.0 0.9
Corporates 23.2 24.4 -4.9 0.9
Wealth Management 5.9 4.6 29.4 3.0
CIB 25.6 19.1 34.2 9.1
Other 1.9 2.2 -9.9 8.9
Total customer loans 115.7 107.3 7.8 2.4
Mar-21 Jun-21 Sep-21 Dec-21 Mar-22
Group criteria 13
(1) Excludes reverse repos.Customer fund growth boosted by consumer deposits, despite pricing actions and
more efficient retail network
Total customer funds (USD bn)1
109.5 Mar-22 Mar-21 YoY (%) QoQ (%)
103.4 105.3 104.0
100.4
Demand 81.7 75.0 8.9 0.8
Time 12.7 12.0 6.0 79.8
Total deposits 94.4 87.0 8.5 7.2
Mutual Funds 15.1 13.4 12.9 -5.3
Total customer funds 109.5 100.4 9.1 5.3
Mar-21 Jun-21 Sep-21 Dec-21 Mar-22
Group criteria 14
(1) Excluding repos.Index
1 2 3 4 5
Financial Strategy and Results Concluding Appendix
system business remarks
15NII stable as deposit pricing initiatives and mix offset divestiture impacts
Net interest income (USD mn) Yields and Costs (%)
Yield on loans
1,578 1,567 1,569 1,548 1,546 6.91% 6.76% 6.59% 6.41% 6.29%
Cost of deposits
0.17% 0.12% 0.11% 0.08% 0.09%
Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22
NIM Differential
3.60% 3.49% 3.41% 3.30% 3.25% 6.7 pp 6.6 pp 6.5 pp 6.3 pp 6.2 pp
1
Federal Funds rate
0.25% 0.25% 0.25% 0.25% 0.29%
Note: NIM is calculated as Net Interest Income / Total Average Assets. Leasing income is not included as it is recorded in other operating income and expenses. 16
(1) Quarterly average.Net fee income decreased 10% YoY, excluding divestiture impacts, driven by normalization
in CIB activity and our SafetyNet initiative which reduced client overdraft fees
Net fee income (USD mn) Q1'22 Q1'21 YoY (%) QoQ (%)
Consumer ex Auto 57 110 -47.9 -5.7
Payment methods 27 72 -62.7 -4.5
Account admin. and
290 5 8 -30.3 8.2
maintenance
Insurance 9 9 6.4 -2.8
231 221 Other consumer1 16 22 -27.3 -12.9
204 200 Auto 10 20 -50.0 44.5
Total consumer 67 130 -48.2 -0.5
Corporate 16 15 4.8 -5.5
Wealth Management 61 57 6.6 11.8
SCIB 69 71 -3.1 26.7
Other 8 16 -53.4 19.8
Total net fee income 221 290 -23.9 10.5
Q1'21 Q2'21 Q3'21 Q4'21 Q1'22
Note: Excluding an unsecured personal loan portfolio disposal impacts, total net fee income -10% YoY. 17
(1) Includes overdrafts.Total income decreased 5% YoY, excluding divestiture impacts, due to lower leased
vehicle income and lower fee income
Total income (USD mn)
2,258 2,181
Q1'22 Q1'21 YoY (%) QoQ (%)
2,146
2,016 2,032
Net interest income 1,546 1,578 -2.1 -0.1
Net fee income 221 290 -23.9 10.5
Customer revenue 1,767 1,868 -5.4 1.1
Other1 265 390 -32.0 -1.3
Total income 2,032 2,258 -10.0 0.8
Q1'21 Q2'21 Q3'21 Q4'21 Q1'22
Note: Excluding an unsecured personal loan portfolio disposal impacts, total income -5% YoY and net interest income +1% YoY. 18
(1) Other includes Gains (losses) on financial transactions, Other operating income and Leasing income.Expenses were stable YoY, due to strong expense management in Consumer and
Commercial to offset CIB and Wealth growth initiatives
Operating expenses (USD mn)
945 960 973
901 895
Q1'22 Q1'21 YoY (%) QoQ (%)
Operating Expenses 895 901 -0.6 -7.9
Branches (#) 488 571 -14.5 0.0
Employees (#) 15,544 15,991 -2.8 -0.8
Q1'21 Q2'21 Q3'21 Q4'21 Q1'22
19Net operating income decreased 8% YoY, excluding divestiture impacts, due to lower
leased vehicle income and fees (CIB activity normalization and overdrafts)
Net operating income (USD mn)
1,358 Q1'22 Q1'21 YoY (%) QoQ (%)
1,236 1,185 1,137 Total income 2,032 2,258 -10.0 0.8
1,044
Operating Expenses (895) (901) -0.6 -7.9
Net operating income 1,137 1,358 -16.3 8.9
Efficiency ratio 44.1% 39.9% 4.2 pp
Q1'21 Q2'21 Q3'21 Q4'21 Q1'22
Note: Excluding an unsecured personal loan portfolio disposal impacts, net operating income -8% YoY. 20Provisions increased driven by normalization in auto credit performance and lower YoY
reserve releases
Net LLPs (USD mn)
350
287 Q1'22 Q1'21 YoY (%) QoQ (%)
Net operating income 1,137 1,358 -16.3 8.9
199
Loan-loss provisions (287) (199) 44.0 -
Net operating income after
850 1,158 -26.6 -21.8
provisions
NPL ratio 2.75% 2.11% 64 bps 42 bps
Cost of credit1 0.49% 2.12% -163 bps 7 bps
-11 Coverage Ratio 2 122% 183% -61.0 pp -28.1 pp
-43
Q1'21 Q2'21 Q3'21 Q4'21 Q1'22
(1) Cost of credit based on 12-month loan-loss provisions divided by average customer loans. 21
(2) Total allowances to cover impairment losses on loans and advances to customers, customer guarantees and customer commitments granted divided by credit impaired loans
and advances to customers, customer guarantees and customer commitments granted.Profit decreased 5% YoY, excluding divestiture impacts. Very high level of profit of
USD 654 mn, more than double the quarterly average profit in 2019
Underlying Attributable Profit (USD mn)
Q1'22 Q1'21 YoY (%) QoQ (%)
790
PBT 828 1,141 -27.4 -13.5
720
654 Tax on profit (174) (273) -36.4 -19.2
561 590
Consolidated profit 654 867 -24.6 -11.8
Minority interests 0 (147) -100.0 -100.0
Underlying attributable
654 720 -9.1 11.0
profit
Effective tax rate 21.0% 24.0% -3.0 pp
Q1'21 Q2'21 Q3'21 Q4'21 Q1'22
Note: Excluding an unsecured personal loan portfolio disposal impacts, profit -5% YoY. 22Index
1 2 3 4 5
Financial Strategy and Results Concluding Appendix
system business remarks
23Conclusions
Financial System
Loan growth continues but still remains below pre-pandemic levels
Q1 loan growth driven by commercial loans, while consumer and real estate were relatively stable
Despite lower QoQ growth, deposits still 8% higher than prior year
Strategy & Business
Positioned to deliver above cost of capital returns across core businesses
Refocus the US on our market leading consumer franchise
Simplification: disciplined capital allocation. Discontinuing home lending operations and review certain C&I segments
Synergies from 2021 strategic investments (Crédit Agricole / Amherst Pierpont / SC USA minority interests)
Results
Total income decreased 5% YoY, excluding divestiture impacts, due to lower leased vehicle income and lower fee income
Net operating income decreased 8% YoY, excluding divestiture impacts, due to lower leased vehicle income and fee income (CIB activity
normalization and overdrafts)
Provisions increased driven by normalization in auto credit performance and lower YoY reserve releases
Profit decreased 5% YoY, excluding divestiture impacts. Very high level of profit of USD 654 mn, more than double the quarterly average profit in
2019
24Index
1 2 3 4 5
Financial Strategy and Results Concluding Appendix
system business remarks
25Balance sheet
USD million Variation
Mar-22 Mar-21 Amount %
Loans and advances to customers 121,434 107,759 13,675 12.7
Cash, central banks and credit institutions 26,085 24,909 1,176 4.7
Debt instruments 18,701 17,793 908 5.1
Other financial assets 5,321 4,208 1,113 26.5
Other asset accounts 19,984 20,971 (987) (4.7)
Total assets 191,525 175,641 15,885 9.0
Customer deposits 110,765 98,198 12,567 12.8
Central banks and credit institutions 13,817 10,100 3,717 36.8
Marketable debt securities 34,801 37,033 (2,232) (6.0)
Other financial liabilities 5,532 4,322 1,210 28.0
Other liabilities accounts 4,853 4,080 773 18.9
Total liabilities 169,768 153,733 16,035 10.4
Total equity 21,758 21,908 (150) (0.7)
Other managed customer funds 23,553 21,732 1,821 8.4
Mutual funds 15,113 13,391 1,722 12.9
Pension funds — — — —
Managed portfolios 8,440 8,341 99 1.2
26Income statement
USD million Variation
Q1'22 Q1'21 Amount %
Net interest income 1,546 1,578 (32) (2.1)
Net fee income 221 290 (69) (23.9)
Gains (losses) on financial transactions 75 84 (9) (10.5)
Other operating income 190 306 (116) (37.9)
Total income 2,032 2,258 (226) (10.0)
Operating expenses (895) (901) 6 (0.6)
Net operating income 1,137 1,358 (221) (16.3)
Net loan-loss provisions (287) (199) (88) 44.0
Other gains (losses) and provisions (22) (18) (4) 23.8
Underlying profit before tax 828 1,141 (313) (27.4)
Tax on profit (174) (273) 99 (36.4)
Underlying profit from continuing operations 654 867 (213) (24.6)
Net profit from discontinued operations — — — —
Underlying consolidated profit 654 867 (213) (24.6)
Non-controlling interests — (147) 147 (100.0)
Underlying attributable profit to the parent 654 720 (66) (9.1)
27Quarterly income statement
USD million
Q1'21 Q2'21 Q3'21 Q4'21 Q1'22
Net interest income 1,578 1,567 1,569 1,548 1,546
Net fee income 290 231 204 200 221
Gains (losses) on financial transactions 84 24 39 31 75
Other operating income 306 359 333 237 190
Total income 2,258 2,181 2,146 2,016 2,032
Operating expenses (901) (945) (960) (973) (895)
Net operating income 1,358 1,236 1,185 1,044 1,137
Net loan-loss provisions (199) 11 (350) 43 (287)
Other gains (losses) and provisions (18) 18 (7) (130) (22)
Underlying profit before tax 1,141 1,265 828 957 828
Tax on profit (273) (302) (155) (215) (174)
Underlying profit from continuing operations 867 963 673 742 654
Net profit from discontinued operations — — — — —
Underlying consolidated profit 867 963 673 742 654
Non-controlling interests (147) (173) (112) (152) —
Underlying attributable profit to the parent 720 790 561 590 654
28Thank You. Our purpose is to help people and businesses prosper. Our culture is based on believing that everything we do should be:
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