Spain 9M'20 Earnings Presentation - 27 October 2020 - Banco Santander
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27 October 2020 Spain 9M’20 Earnings Presentation
Important Information
Non-IFRS and alternative performance measures
In addition to the financial information prepared in accordance with International Financial Reporting Standards (“IFRS”) and derived from our financial statements, this presentation contains certain
financial measures that constitute 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”). The financial measures contained in this presentation that qualify as APMs and non-IFRS
measures have been calculated using the financial information from Santander Group but are not defined or detailed in the applicable financial reporting framework and have neither been audited nor
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 management and investors to facilitate operating performance comparisons from period to period, 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 2019. While we believe that these APMs and non-IFRS measures are useful in evaluating our business, this information should be considered as supplemental in nature and is
not meant as a substitute of IFRS measures. In addition, other companies, including companies in our industry, may calculate or use such measures differently, which reduces their usefulness as
comparative measures. For further details of the APMs and Non-IFRS Measures used, 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 2019 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on 6 March 2020, as
well as the section “Alternative performance measures” of the annex to the Banco Santander, S.A. (“Santander”) Q3 2020 Financial Report, published as Inside Information on 27 October 2020. 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 cautions that this presentation contains statements that constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-
looking statements may be identified by words such as “expect”, “project”, “anticipate”, “should”, “intend”, “probability”, “risk”, “VaR”, “RoRAC”, “RoRWA”, “TNAV”, “target”, “goal”, “objective”,
“estimate”, “future” and similar expressions. These forward-looking statements are found in various places throughout this presentation and include, without limitation, statements concerning our
future business development and economic performance and our shareholder remuneration policy. While these forward-looking statements represent our judgment and future expectations concerning
the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. The following
important factors, in addition to those discussed elsewhere in this presentation, could affect our future results and could cause outcomes to differ materially from those anticipated in any forward-
looking statement: (1) general economic or industry conditions in areas in which we have significant business activities or investments, including a worsening of the economic environment, increasing in
the volatility of the capital markets, inflation or deflation, changes in demographics, consumer spending, investment or saving habits, and the effects of the COVID-19 pandemic in the global economy;
(2) exposure to various types of market risks, principally including interest rate risk, foreign exchange rate risk, equity price risk and risks associated with the replacement of benchmark indices; (3)
potential losses associated with prepayment of our loan and investment portfolio, declines in the value of collateral securing our loan portfolio, and counterparty risk; (4) political stability in Spain, the
UK, other European countries, Latin America and the US (5) changes in laws, regulations or taxes, including changes in regulatory capital and liquidity requirements, including as a result of the UK exiting
the European Union and increased regulation in light of the global financial crisis; (6) our ability to integrate successfully our acquisitions and the challenges inherent in diverting management’s focus and
resources from other strategic opportunities and from operational matters while we integrate these acquisitions; and (7) changes in our ability to access liquidity and funding on acceptable terms,
including as a result of changes in our credit spreads or a downgrade in our credit ratings or those of our more significant subsidiaries.
2
Important Information
Numerous factors could affect the future results of Santander and could result in those results deviating materially 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 based on the knowledge, information available and views taken on such date; such knowledge, information and views
may change at any time. Santander does not undertake any obligation to update or revise any forward-looking statement, whether as a result 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 as to historical performance or financial accretion are not intended to mean that future performance, share price or future earnings (including earnings per share) for any period will
necessarily match or exceed those of any prior period. Nothing in this presentation should be construed 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.
3Index
1 2 3 4 5
Financial Strategy and Results Concluding Appendix
system business remarks
4Financial system
Stock of loans increased YoY boosted by the state-guaranteed programmes
Total loans (EUR bn)
1,207 1,191
1,159 1,155 1,159 Demand for loans up YoY boosted by the state-guaranteed
2.4 2.0 programmes, mainly in SMEs and corporates.
YoY -0.7
(%) -1.7 -1.5 Housing loans also impacted by measures following
regulatory and supervisory recommendations, that, in
many cases, were materialised through moratoria on
payments of credit obligations.
Sep-19 Dec-19 Mar-20 Jun-20 Jul-20
Total deposits (EUR bn)
1,111 1,125 1,187 1,185
1,093
7.5 8.7 In savings, demand deposits increased YoY, both in
YoY
(%) 5.1 4.8 4.2 households and corporates, in order to protect themselves
from the consequences related to the COVID-19 crisis.
Sep-19 Dec-19 Mar-20 Jun-20 Aug-20
Source: Bank of Spain. 5
Loans to Other Resident sectorsIndex
1 2 3 4 5
Financial Strategy and Results Concluding Appendix
system business remarks
6Strategy and business
Santander remains committed to maintaining its leadership by supporting individual
customers, SMEs and corporates, especially to overcome the COVID-19 crisis
KEY DATA 9M’20 YoY Var. STRATEGIC PRIORITIES
Customer loans1 EUR 199.0 bn +2.3%
Contribute to the economic recovery supporting our
Customer funds2 EUR 316.6 bn +1.2%
self-employed, SMEs and corporates
Underlying att. Profit EUR 497 mn -58.1%
Continue growing SME, corporate and Wealth segments with
Underlying RoTE 4.2% -6.4 pp strong focus on high value-added products
Efficiency ratio 53.1% -36 bps
Loans market share3 17.8% +41 bps Increase customer revenue and continue costoptimisation
Deposits market share3 18.4% -49 bps
Accelerate the Bank´s digital transformation towards a data
Loyal customers 2.6 mn +3.2% driven company
Digital customers 5.1 mn +10.1%
Focus on reducing doubtful assets and leverage our capital
Branches 3,110 -19.3% efficientmodel
Employees 27,053 -9.0%
(1) Excluding reverse repos.
(2) Excluding repos.
7
(3) Spain market share includes: SAN Spain (public criteria) + Openbank + Hub Madrid + SC Spain. Other Resident sectors in Deposits.
Loans market share as of Jun-20 and YoY variation vs. Jun-19. Deposits market share as of Jun-20 and YoY variation vs. Jun-19Strategy and business
Enhanced digital offering and capabilities as key levers to increase loyalty
Loyal (mn)
3% 2.6 Continued development of strong digital capabilities focused on improving customer experience
2.5
Double-digit growth in insurance business: +131% YoY in burial, +54% YoY in health,
+11% YoY in home, among others
+3% YoY in card billing and +10% YoY in POS national turnover (Q3’20 vs Q3’19) with
+18% growth in transactions
Sep-19 Sep-20
Continued leadership in ICO financing, with a 27.5% market share, through a streamlined and
Loyal / Active: 33% (+2 pp YoY) digital process
Digital customers (mn)
5.1 66% digital penetration among our active customer base
10%
4.7
Continue boosting our digital transformation, through new services such as a 100% digital
mortgage or a financial aggregator for SMEs
Launched new app for individuals, redesigned to be 100% customisable to meet our customer
Sep-19 Sep-20 needs with a great impact on customer experience
Digital sales / total1: 33% (+5 pp YoY) Reached #1 in Aqmetrix in Web and app (SMEs and Individuals) and anamed the Best Bank for
Digital Services Spain 2020 by Global Banking and Finance magazine
(1) YTD data
8Strategy and business
Santander España sped up digital transformation with a new renewed app to support
commercial dynamism
Santander España boosting digital transformation
and strengthening remote channels Leading ICO financing
New app for individuals >EUR 70 bn financing to SMEs and Corporates since
Classic lockdown
Totally redesigned, more customisable • Continued leadership in ICO financing, with EUR 27.6 bn
along >189 k transactions, reaching 27.5% market share
+12 pp quarterly growth in app NPS
Reactivating commercial dynamism
> 1 million Senior customers
Car Renting: +51% YoY growth in the quarter (Q3’20 vs Q3’19)
1º First bank to lead all Aqmetrix ratings in Spain Insurance: double-digit growth in several business
(mobile, web and customer support for both SMEs and individuals) (health, home, burial, …)
Funds: >EUR 700 mn net quarterly acquisition and
Strengthen our digital capabilities with additional services continued leadership of SRI funds with >EUR 5.7 bn AuM
(financial aggregator “Money Plan 4 business”)
Strengthening our distribution model
Strategic distribution deal with Correos, from January 21
Best Contact Centre in Service Quality 2020 in Spain
> 4,600 customer service points to extend our geographical
coverage, focused on rural regions
9Supporting employees and customers to overcome the COVID-19 crisis
Employees Customers
• Consolidated an employee mix of on-site/teleworking • ICO COVID lines supporting customers with EUR 27.6 bn
scheme to protect staff and ensure business continuity in >189,000 transactions (27.5% market share)
• Medical care service and remote advice & guidance • >EUR 44 bn fund1 to cover SME & Corporates’
from specialists for employees and families liquidity needs
• More than 180,000 mortgage, UPL and cards
• Launched app “Mi vuelta”, including contact tracing Main payment holidays (legal and complementary banking
COVID-19 sector), leveraging a 100% digital process
measures
• Supporting Regions with medical supplies • Reinforcement of remote channels: contact centres
acquisitions
implemented and Santander Personal
• Supporting IFEMA dedicated Hospital • Implemented additional remote signature capabilities
for individuals and corporates
• Supporting seniors and vulnerable customers with • 100% digital processes for mortgages and UPLs payment
advanced unemployment and retirement payments holidays
• Fund raising: Employees Solidarity Fund “Juntos” and La Liga • Free ATM withdrawals for customers in all ATMs across the
Santander Fest concert among others country (including competitors)
Society: Be part of the solution Digital Channels
(1) Loans, credits and commercial lending for SMEs and Corporates since 16 March based on own funds (no ICO) 10Strategy and business
Focusing on our responsible banking agenda and commitments
Culture Green finance & Env. footprint
Engagement Women
Environmental Impact Green Finance
85% of employees 25% women in senior #1: Project Finance of
proud to work for Santander leadership positions
100% renewable projects1
(+3 pp vs. 2019) Renewable energy
#1 Financial
No unnecessary single-
SAM: leader in SRI Funds
Institution to work for
use plastic free in Sustainable finance offer
corporate centres Wide product offering for
individuals and corporates
Communities Financial inclusion
Social Support Educational Support Access Financial support Financial education
2.6 mn (2019-H1’20) 110 k (2019-H1’20) >700 agents
people helped through our
Affordable housing and
FXM
community programmes
scholarships granted in populations 380 k transactions programme
60 k people helped: EUR 20 mn Correos Cash
supporting individuals
and corps. under liquidity
providing financial
education
sponsorship mobilised basic financial services in and moratoria schemes
focus on vulnerable people in H1’20 to support the
in the context of COVID >4.6 k Correos branches
effects of COVID-19
11
(1) Dealogic League Tables 2019Strategy and business
Loans grew EUR 7.7 billion during the year, strongly driven by SMEs and corporates,
spurred by the ICO-guaranteed loan activity. QoQ down impacted by a portfolio sale
Total customer loans1 (EUR bn)
Sep-20 Sep-19 YoY (%) QoQ (%)
203.8 199.0
194.5 191.3 192.5 Individuals customers2 71.5 73.5 -2.6 -4.0
o/w Mortgages 55.5 56.9 -2.4 -0.9
Rest of products 16.0 16.6 -3.5 -13.5
SMEs & Corporates 95.8 85.0 12.7 -0.8
Institutions 11.2 11.3 -0.7 -1.8
CIB 19.5 21.6 -9.6 -3.5
RE & Other 0.9 3.1 -70.9 -16.5
Total customer loans 199.0 194.5 2.3 -2.4
Sep-19 Dec-19 Mar-20 Jun-20 Sep-20
Group criteria
(1) Excludes reverse repos
(2) Includes Private Banking
12Strategy and business
Customer funds were 1% higher, driven by demand deposits. In the quarter, mutual
funds grew 4%, favoured by markets and net positive inflows in recent months
Total customer funds (EUR bn)
Sep-20 Sep-19 YoY (%) QoQ (%)
312.9 308.7 311.8 316.6 Demand 218.8 207.0 5.7 0.6
293.9 Time 31.6 38.5 -17.9 3.4
Total deposits 250.4 245.5 2.0 0.9
Mutual Funds 66.2 67.4 -1.8 3.9
Total customer funds 316.6 312.9 1.2 1.5
Additionally, the Bank includes Pension Funds as assets under
management, EUR 13.7 bn at Sep-20, EUR -0.6 bn YoY
Sep-19 Dec-19 Mar-20 Jun-20 Sep-20
Group criteria 13Index
1 2 3 4 5
Financial Strategy and Results Concluding Appendix
system business remarks
14Results
9M’20 NII fell 3% YoY due to low interest rates, the smaller ALCO portfolio and lower
stock in wholesale banking. Strong QoQ recovery (+11%)
Net interest income (EUR mn) Yields and costs (%)
1,034
967 934 925 931 Yield on loans
2.02% 2.02% 1.99% 1.86% 1.82%
Cost of deposits
0.13% 0.13% 0.06% 0.04% 0.04%
Q3'19 Q4'19 Q1'20 Q2'20 Q3'20
Q3'19 Q4'19 Q1'20 Q2'20 Q3'20
1
NIM Differential
1.15% 1.13% 1.17% 1.14% 1.17% 189 bps 189 bps 192 bps 182 bps 178 bps
Central Bank interest rate
0.00% 0.00% 0.00% 0.00% 0.00%
(1) Group criteria. NIM is calculated as Net Interest Income / Total Average Assets 15Results
Net fee income down 6% YoY due to reduced transaction volumes and market
performance. QoQ recovery due to transactional and payment fees
Net fee income (EUR mn)
620 643
614 9M'20 9M'19 YoY (%) QoQ (%)
562
535 Transactional fees 290 262 10.4 13.5
Investment and pension
612 587 4.3 2.8
funds
Insurance 179 201 -10.7 3.6
1
Payments and Other fees 414 562 -26.4 9.8
Total Retail 1,494 1,612 -7.3 6.8
CIB & Other (FN) 246 249 -1.3 -4.8
Total net fee income 1,740 1,861 -6.5 5.1
Q3'19 Q4'19 Q1'20 Q2'20 Q3'20
(1) Includes trade, guarantees and late payment claim fees 16Results
Total income fell 10% YoY strongly impacted by non-customer revenue due to lower
income from stakes
Total income (EUR mn)
1,989
1,811 1,789 1,800
9M'20 9M'19 YoY (%) QoQ (%)
1,562
Net interest income 2,890 2,985 -3.2 11.1
Net fee income 1,740 1,861 -6.5 5.1
Customer revenue 4,630 4,846 -4.5 8.9
Other1 520 849 -38.7 112.7
Total income 5,150 5,695 -9.6 15.3
Q3'19 Q4'19 Q1'20 Q2'20 Q3'20
Note: FGD recorded in Q4’19: EUR 228 mn before tax. SRF recorded in Q2’20: EUR 120 mn before tax. 17
(1) Other includes gains/losses on financial transactions and other operating income
(2) Gains on financial transactionsResults
Costs dropped at double-digit rates (-10% YoY) as a result of the optimisation
processes carried out
Operating expenses (EUR mn)
999 977 944
896 893
9M'20 9M'19 YoY (%) QoQ (%)
Operating Expenses 2,734 3,043 -10.2 -0.4
Branches (#) 3,110 3,852 -19.3 -3.5
Employees (#) 27,053 29,713 -9.0 -0.8
Q3'19 Q4'19 Q1'20 Q2'20 Q3'20
18Results
Net operating income fell 9%, less than total income (-10% YoY), favoured by strong
cost savings
Net operating income (EUR mn)
990
907
834 844
9M'20 9M'19 YoY (%) QoQ (%)
665 Total income 5,150 5,695 -9.6 15.3
Operating Expenses (2,734) (3,043) -10.2 -0.4
Net operating income 2,417 2,652 -8.9 36.4
Efficiency ratio 53.1% 53.4% -36 bps
Q3'19 Q4'19 Q1'20 Q2'20 Q3'20
19Results
The NPL ratio improved 125 bps YoY. Strong decline in the stock of non-performing
loans (-16% YoY) in the current environment due to an NPL portfolio sale
Net LLPs (EUR mn)
628 9M'20 9M'19 YoY (%) QoQ (%)
Net operating income 2,417 2,652 -8.9 36.4
449
Loan-loss provisions (1,390) (680) 104.4 43.6
313 Net operating income after
1,027 1,972 -47.9 30.0
provisions
210
176
NPL ratio 5.98% 7.23% -125 bps -57 bps
1
Cost of credit 0.80% 0.41% 39 bps 12 bp
Coverage ratio 46% 41% 5.4 pp 2.7 pp
Q3'19 Q4'19 Q1'20 Q2'20 Q3'20
(1) Cost of credit based on 12 month loan-loss provisions divided by average customer loans 20Results
Underlying profit down 58% YoY in a more challenging business environment due to the
COVID-19 outbreak (mainly higher LLPs). Q3 recovery boosted by NII and fee income
Underlying Attributable Profit (EUR mn)
491
9M'20 9M'19 YoY (%) QoQ (%)
400 PBT 696 1,617 -57.0 45.8
Tax on profit (200) (432) -53.8 30.4
Consolidated profit 496 1,184 -58.1 53.3
246
Minority interests 0 0 51.1 -40.0
161 Underlying attributable
497 1,185 -58.1 53.1
90 profit
Effective tax rate 28.7% 26.7% 2.0 pp -3.4 pp
Q3'19 Q4'19 Q1'20 Q2'20 Q3'20
Note: Contribution to the FGD recorded in Q4’19: EUR 160 mn after tax. SRF recorded in Q2’20: EUR 84 mn after tax. 21Index
1 2 3 4 5
Financial Strategy and Results Concluding Appendix
system business remarks
22Concluding remarks
Growth in volumes boosted by SMEs and corporates
Demand for loans up boosted by the state-guaranteed programmes, mainly in SMEs and corporates. Housing loans
also impacted by measures following regulatory and supervisory recommendations, that, in many cases, were
Financial System materialised through moratoria on payments of credit obligations
In savings, demand deposits increased, both in households and companies, in order to protect themselves from the
consequences related to the COVID-19 crisis
In a period that continued to be impacted by the health crisis, we continued to be a part of the solution for the recovery
of economic activity, through numerous initiatives to support families, self-employed workers and businesses. We
remained leaders in channeling ICO funding, reaching a 27.5% market share
Strategy
& We progressed further in our transformation process, optimising costs and strengthening our digital capabilities. Our
new app was redesigned to fit individual needs, improving customer experience
Business
In Q3, focus shifted toward reactivating activity, with growth (vs Q3'19) in new residential mortgage lending (+3%),
protection insurance (double-digit growth in health, home and burial insurance) and car renting (+51%), offsetting the
fall in consumer loans (-44%). In addition, transactional products increased (+3% in card turnover and +1% in POS).
NII fell 3% YoY due to low interest rates, the smaller ALCO portfolio and lower stock in wholesale banking. Strong
QoQ recovery (+11%)
Cost dropped at double-digit rates (-10% year-on-year) as a result of the optimisation processes carried out
Results The NPL ratio improved 125 bps YoY. Strong decline in the stock of non-performing loans (-16% YoY) in the current
environment due to an NPL portfolio sale
Underlying profit down 58% YoY in a more challenging business environment due to the COVID-19 outbreak,
although increase in the quarter
23Index
1 2 3 4 5
Financial Strategy and Results Concluding Appendix
system business remarks
24Appendix
Balance sheet
Change
EUR million Sep-20 Sep-19 Amount %
Customer loans 192,894 188,095 4,798 2.6
Cash, central banks and credit institutions 112,338 81,273 31,064 38.2
Debt securities 21,766 35,906 (14,140) (39.4)
Other financial assets 2,571 1,495 1,076 72.0
Other assets 22,727 22,806 (79) (0.3)
Total assets 352,296 329,576 22,720 6.9
Customer deposits 250,369 246,017 4,352 1.8
Central banks and credit institutions 47,536 28,188 19,348 68.6
Debt securities issued 26,141 26,281 (140) (0.5)
Other financial liabilities 7,858 9,649 (1,790) (18.6)
Other liabilities 4,012 4,306 (295) (6.8)
Total liabilities 335,916 314,441 21,475 6.8
Total equity 16,380 15,135 1,245 8.2
Other managed and marketed customer funds 90,464 92,676 (2,212) (2.4)
Mutual funds 66,228 67,434 (1,206) (1.8)
Pension funds 13,684 14,333 (649) (4.5)
Managed portfolios 10,552 10,909 (357) (3.3)
25Appendix
Income statement
Variation
EUR million 9M'20 9M'19 Amount %
Net interest income 2,890 2,985 (95) (3.2)
Net fees 1,740 1,861 (121) (6.5)
Gains (losses) on financial transactions 601 659 (58) (8.8)
Other operating income (80) 190 (270) -
Gross income 5,150 5,695 (544) (9.6)
Operating expenses (2,734) (3,043) 309 (10.2)
Net operating income 2,417 2,652 (235) (8.9)
Net loan-loss provisions (1,390) (680) (710) 104.4
Other income (331) (355) 24 (6.8)
Underlying profit before taxes 696 1,617 (921) (57.0)
Tax on profit (200) (432) 232 (53.8)
Underlying profit from continuing operations 496 1,184 (688) (58.1)
Net profit from discontinued operations — — — -
Underlying consolidated profit 496 1,184 (688) (58.1)
Minority interests 0 0 0 51.1
Underlying attributable profit to the Group 497 1,185 (688) (58.1)
26Appendix
Quarterly income statements
EUR million Q3'20 / Q2'20
Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20
Net interest income 1,009 1,009 967 934 925 931 1,034
Net fees 623 624 614 620 643 535 562
Gains (losses) on financial transactions 119 214 326 387 156 250 194
Other operating income 105 2 83 (129) 64 (154) 10
Gross income 1,857 1,849 1,989 1,811 1,789 1,562 1,800
Operating expenses (1,025) (1,020) (999) (977) (944) (896) (893)
Net operating income 832 829 990 834 844 665 907
Net loan-loss provisions (242) (228) (210) (176) (628) (313) (449)
Other income (112) (143) (100) (100) (104) (115) (112)
Underlying profit before taxes 478 458 681 557 112 237 346
Tax on profit (122) (120) (190) (157) (22) (77) (100)
Underlying profit from continuing operations 356 338 491 401 90 160 246
Net profit from discontinued operations — — — — — — —
Underlying consolidated profit 356 338 491 401 90 160 246
Minority interests 0 0 (0) (0) (0) 0 0
Underlying attributable profit to the Group 356 338 491 400 90 161 246
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