1 November 6, 2024 SANTANDER HOLDINGS USA, INC. Third Quarter 2024 Fixed Income Investor Presentation
2 This presentation of Santander Holdings USA, Inc. (“SHUSA”) contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the financial condition, results of operations, business plans and future performance of SHUSA. Words such as “may,” “could,” “should,” “will,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “goal” or similar expressions are intended to indicate forward-looking statements. Although SHUSA believes that the expectations reflected in these forward-looking statements are reasonable as of the date on which the statements are made, factors such as the risks and uncertainties described in SHUSA’s filings with the Securities and Exchange Commission from time to time may cause SHUSA’s performance to differ materially from that suggested by the forward-looking statements. If one or more of the factors affecting SHUSA’s forward-looking statements renders those statements incorrect, SHUSA’s actual results, performance or achievements could differ materially from those expressed in or implied by the forward-looking statements. Readers should not consider these factors to be a complete set of all potential risks or uncertainties as new factors emerge from time to time. In this presentation, we may sometimes refer to certain non-GAAP figures or financial ratios to help illustrate certain concepts. These ratios, each of which is defined in this document, if utilized, may include Pre- Tax Pre- Provision Income, the Tangible Common Equity to Tangible Assets Ratio, and the Texas Ratio. This information supplements our results as reported in accordance with generally accepted accounting principles (“GAAP”) and should not be viewed in isolation from, or as a substitute for, our GAAP results. We believe that this additional information and the reconciliations we provide may be useful to investors, analysts, regulators and others as they evaluate the impact of these items on our results for the periods presented due to the extent to which the items are indicative of our ongoing operations. Where applicable, we provide GAAP reconciliations for such additional information. SHUSA’s subsidiaries include Santander Consumer USA Inc. (“SC”), Santander Bank, N.A. (“SBNA”), Banco Santander International (“BSI”), Santander Securities LLC (“SSLLC”), Santander US Capital Markets LLC (“SanCap”), as well as several other subsidiaries. The information in this presentation is intended only to assist investors and does not constitute legal, tax, accounting, financial or investment advice or an offer to invest. In making this presentation available, SHUSA gives no advice and makes no recommendation to buy, sell, or otherwise deal in shares or other securities of Banco Santander, S.A. (“Santander”), SHUSA, SBNA, SC or any other securities or investments. It is not our intention to state, indicate, or imply in any manner that current or past results are indicative of future results or expectations. As with all investments, there are associated risks, and you could lose money investing. Prior to making any investment, a prospective investor should consult with its own investment, accounting, legal, and financial advisors and independently evaluate the risks, consequences, and suitability of that investment. No offering of securities shall be made in the United States except pursuant to registration under the Securities Act of 1933, as amended, or an exemption therefrom. Important Information
3 1 At a Glance 2 Results Appendix 4 Index 3 Core Business Activities
4 Santander SHUSA $168B Assets ~11,000 employees Consumer Commercial Market-leading full spectrum auto lender and Consumer and Business Banking (“CBB”) Leading multifamily bank lender Global hub for capital markets and investment banking Leading brand in LatAm for high- net-worth (“HNW”) clients, leveraging Group connectivity Our business model focuses on four core segments as we continue to leverage Santander’s connectivity Core Segments and Q3’24 Assets ($B) $72 $28 $27 $541 Wealth Management Corporate & Investment Banking (“CIB”) SC operates in all 50 states SBNA Products include: • $77B deposits • C&I3 • CRE4 • Auto SANCAP • Fixed-income, real estate, and finance advisory BSI • Manages wealth for HNW clients SC • Leading auto loan originator and top ABS2 issuer SHUSA’s Main Subsidiaries SHUSA is a wholly-owned intermediate holding company for Santander’s US entities SHUSA 1 | Represents assets under management which includes customer deposits, securities, loans and letters of credits 2 | Asset-backed securitization 3 | Commercial and industrial 4 | Commercial real estate
5 SHUSA Q3 2024 Highlights FINANCIAL METRICS CREDIT CAPITAL/LIQUIDITY 3.8% NET INTEREST MARGIN (“NIM”) Down 30bps YoY Down 13bps QoQ 11.8% 30-89 DAYS AUTO1 DELINQUENCY Up 104bps YoY Flat to 3Q19 2 12.7% CET1 $193M NET INCOME Up $73M YoY Down $221M QoQ 0.6% QTD NET CHARGE-OFFS3 (“NCOs”) Flat YoY Up 9bps QoQ 24.1% TLAC RATIO 1 | Consumer auto only 2 | Represents pre-COVID-19 levels 3 | Total NCOs (Consumer + Commercial) PERFORMANCE HIGHLIGHTS Revenues Improving CIB and Auto margins, and strong fee income growth (+26% YoY) driven by consumer and deposit fees, CIB, and FDIC joint-venture in CRE Offset from strategic balance sheet activities, higher deposit cost, lower loan and lease volume in Auto Expenses Strategic investments in digital transformation and CIB buildout offset by cost initiatives across the company One-time legal and restructuring charges in the quarter Credit Despite ongoing normalization, overall credit performance supported by resilient employment environment Capital and Liquidity Strong position evidenced by regulatory metrics (Common Equity Tier 1 (“CET1”) and Total Loss-Absorbing Capital (“TLAC”)), stress tests and contingent liquidity
6 SHUSA Q3 2024 Financial Results and Highlights “Outstanding” Community Reinvestment Act Rating Santander Bank, N.A. earned “Outstanding” Community Reinvestment Act rating by the Office of the Comptroller of the Currency (“OCC”) for the second three-year assessment period Q3 Financial Highlights and Announcements Launched Santander launched Openbank platform in the US in October to offer a national cloud-based, digital banking platform Results driven by: Provisions improved YoY, supported by a resilient employment environment and strategic balance sheet activities including loan sales1 Income before taxes improved YoY, due to strong fee income growth from CIB, Wealth and FDIC joint- venture in CRE Net income improved YoY, due factors noted above as well as benefits from electric vehicle tax credits 1 | During Q3, the Company sold ~$1.3B of personal unsecured loans to a third party. The transaction resulted in a loss on sale of ~$106.8M, offset by a release of the ACL in the amount of ~$101.8M Quarter ended Change ($M) 3Q24 2Q24 3Q23 QoQ YoY Net interest income (“NII”) $ 1,383 $ 1,403 $ 1,471 (1%) (6%) Other non-interest income 55 64 37 (14%) 49% Fees & other income 750 932 884 (20%) (15%) Net revenue 2,188 2,399 2,392 (9%) (9%) General & administrative expenses (1,596) (1,553) (1,564) 3% 2% Provision (expense)/benefit (431) (481) (856) (10%) (50%) Income before taxes 161 365 (28) (56%) 675% Tax (expense)/benefit 32 50 148 (36%) (78%) Net income $ 193 $ 415 $ 120 (53%) 61% NIM 3.8% 3.9% 4.1%
7 1 At a Glance 2 Results Appendix 4 Index 3 Core Business Activities
8 SHUSA continues to target segments with proven competitive advantages such as auto and multifamily Other Liabilities3, 16% Money Market, 15% Certificates of deposit (“CDs”), 13% Secured Structured Financings, 13% Other Borrowings5, 11% Equity4, 11% Noninterest-bearing (“NIB”), 9% Interest-bearing (“IB”), 7% Savings, 2% Revolving Credit Facilities, 2% Trading Liabilities, 1% Auto Loans, 27% Investments, 17% Other Assets2, 11% C&I, 10% Cash, 10% Auto Leases1, 7% Multifamily, 6% CRE, 5% Residential, 4% Goodwill and Other Intangibles, 2% Other Consumer Loans, 1% $168B Assets $150B Liabilities $18B Equity4 Q3 Balance Sheet Overview 1 | Operating leases 2 | Includes restricted cash and federal funds sold and securities purchased under resale agreements or similar arrangements. 3 | Includes federal funds purchased and securities loaned or sold under repurchase agreements 4 | Includes mezzanine equity 5 | Includes Federal Home Loan Bank (“FHLB”) borrowings
9 Balance Sheet Trends | Assets 1 | Includes securities purchased under repurchase agreements Loans and leases down 5.5% YoY and 1.9% QoQ, driven by C&I Loan yields slightly increased in both commercial and consumer. Auto yields increased 0.88% YoY and 0.04% QoQ. Commercial yields increased 0.48% YoY and 0.12% QoQ Loans & Leases ($B) Q3 Recap Assets ($B) Yield On Loans 45 44 43 45 45 20 19 18 18 17 19 19 19 19 19 14 14 14 13 13 7 7 7 7 7 5 4 4 4 3 $110 $107 $105 $106 $104 3Q23 4Q23 1Q24 2Q24 3Q24 5.6% 13.2% 12.0% 9.4% 0% 5% 10% 15% 20% Total commercial Auto Total consumer Total loans 96 93 92 93 91 25 25 26 28 29 20 20 20 21 18 11 13 14 13 17 14 14 14 13 13 $166 $165 $166 $168 $168 3Q23 4Q23 1Q24 2Q24 3Q24 Leases Short-Term Funds Other Assets¹
10 0.4% 1.0% 1.5% 1.8% 2.2% 2.3% 2.5% 2.6% 2.6% 0.4% 1.0% 1.5% 1.8% 2.2% 2.4% 2.6% 2.7% 2.8% 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 SBNA SHUSA Consumer 62% Commercial 17% CIB 6% Wealth Management 7% Other2 8% Balance Sheet Trends | Liabilities Liabilities & Equity ($B) Deposits by Business Deposits ($B) Cost of Deposits 1 1 | Other liabilities include securities sold under repurchase agreements and trading liabilities 2 | Other consists of deposits related to certain of SHUSA’s immaterial subsidiaries and corporate treasury deposits 3 | Cycle beta represents deposit beta measured relative to 519bps change in average Fed Funds effective rate since the beginning of the rate hiking cycle, which ended in Q3 2024 Q3 2024 Insured Deposits SBNA 62% SBNA up cycle beta3 (Q4’21-Q3’24) = 49% SHUSA up cycle beta3 (Q4’21-Q3’24) = 51% 61 61 63 62 63 43 44 44 44 44 28 26 26 29 28 18 18 18 18 18 16 16 15 15 15 $166 $165 $166 $168 $168 3Q23 4Q23 1Q24 2Q24 3Q24 25 25 25 25 26 19 20 22 21 21 16 16 15 15 15 12 12 12 12 12 5 4 4 4 4 $77 $77 $78 $77 $78 3Q23 4Q23 1Q24 2Q24 3Q24 CDs Money Market
11 Cash at Federal Reserve Capacity at FHLB Discount Window Liquidity from unencumbered securities (5% haircut) Liquidity from released govt. deposit collateral5 45.7 29.3 Liquidity & Wholesale Funding Cash and Immediately Available Sources of Liquidity Q3 Uninsured Deposits SBNA Deposits Q2 2024 Q3 2024 SBNA Insured Deposits 63% 62% Borrowed Funds Profile: Balance ($B) SBNA Contingent Liquidity4 ($B) 3Q’24 Ratio: 156% 14.2 13.4 1 | Includes the subordinated notes; includes BSI unsecured 2 | These notes are payable to SHUSA's parent company, Santander 3 | The warehouse lines and repurchase facilities are fully collateralized by a designated portion of SHUSA’s retail installment contracts (“RICs”), leased 4 | As of 9/30/2024 5 | Includes high quality liquid assets that are encumbered as collateral for uninsured government deposits % Variance Q3 2024 Q2 2024 Q3 2023 QoQ YoY SHUSA Unsecured Debt1 $ 13.9 $ 12.5 $ 11.0 11% 26% SBNA Unsecured Debt2 2.0 2.0 - - - FHLB 2.2 2.8 7.0 (19%) (68%) Credit-Linked Notes (“CLNs”) 1.0 1.2 1.1 (10)% (5)% Third-Party Secured Funding3 2.7 3.7 3.7 (27)% (27)% Amortizing Notes 2.2 2.5 4.4 (13%) (50%) Securitizations 20.4 18.9 15.8 8% 29% Total SHUSA Funding 44.4 43.5 43.0 2% 3% Preferred Equity Issuance to Santander $ 2.0 $ 2.0 $ 1.5 - 33% 2.8 2.5 12.8
12 Debt & Total Loss-Absorbing Capacity 1 | SHUSA must hold the higher of 18% of its risk-weighted assets (“RWAs”) or 9% of its total consolidated assets in the form of TLAC, of which 6% of its RWAs or 3.5% of total consolidated assets must consist of LTD. In addition, SHUSA must maintain a TLAC buffer composed solely of CET1 capital and will be subject to restrictions on capital distributions and discretionary bonus payments based on the size of the TLAC buffer it maintains. 2 | Senior debt issuance data as of September 30, 2024 SHUSA is SEC-registered and issues under the ticker symbol “SANUSA”, with ratings for SHUSA of Baa2(Moody’s)/BBB+(Fitch and S&P) SHUSA meets Federal Reserve’s TLAC and long-term debt (“LTD”) requirements1, with 24.05% TLAC, 9.17% eligible LTD and a CET1 ratio of 12.72% In September 2024, SHUSA executed $1B fixed-to-floating 6nc5yr at 5.353% SHUSA Debt Maturity Schedule2 ($B) $0.95 3.24% $0.50 6.12% $1.00 6.50% $1.00 5.35% $0.50 8.41% $1.10 4.50% $0.43 SOFR+ 135BPS $0.50 8.17% $1.00 3.45% $0.50 5.81% $1.05 4.40% $1.00 2.49% $0.50 6.57% $1.00 6.17% $0.50 7.66% $0.75 6.34% $1.00 9.38% $0.75 6.89% $0.50 2.88% $0.50 7.18% $2.10 $1.88 $2.30 $1.00 $1.50 $2.00 $1.00 $0.50 $0.75 $2.00 2025 2026 2027 2028 2029 2030 2031 2032 2035 Perpetual Private placement Public issuance Internal TLAC
13 As of October 1st, 2024, SHUSA’s current stress capital buffer (“SCB”) requirement is 3.5%, resulting in an overall CET1 capital requirement of 8% Capital Ratios Tier 1 Risk-Based Capital Ratio1 CET11 CET1 AFS & HTM Marked2 11.26% 10.85% 10.94% 11.02% Tier 1 Leverage Ratio1 Total Risk-Based Capital Ratio1 1 | Under capital rules, SHUSA is not required to include negative accumulated other comprehensive income (“AOCI”) in regulatory capital, but as a subsidiary of a global systemically important bank (“GSIB”) we manage AOCI closely as it impacts regulatory capital at the global consolidated level 2 | Estimate considering the full liquidation value of available-for-sale (“AFS”) of held-to-maturity (“HTM”) securities, net of statutory tax (26%) 12.8% 12.4% 12.5% 12.6% 12.7% 3Q23 4Q23 1Q24 2Q24 3Q24 11.42% 14.2% 14.3% 14.4% 14.5% 14.6% 3Q23 4Q23 1Q24 2Q24 3Q24 10.3% 9.8% 9.7% 9.9% 9.8% 3Q23 4Q23 1Q24 2Q24 3Q24 16.3% 16.4% 16.5% 16.6% 16.7% 3Q23 4Q23 1Q24 2Q24 3Q24
14 Quarterly Profitability NII ($M) Pre-Provision Net Revenue(“PPNR”) ($M) Pre-Tax Income ($M) Net Income ($M) $1,471 $1,403 $1,378 $1,403 $1,383 3Q23 4Q23 1Q24 2Q24 3Q24 $828 $470 $756 $846 $592 3Q23 4Q23 1Q24 2Q24 3Q24 ($28) ($149) $351 $365 $161 3Q23 4Q23 1Q24 2Q24 3Q24 ($58) $120 $343 $415 $193 3Q23 4Q23 1Q24 2Q24 3Q24
15 Net Interest Income & Net Interest Margin NIM 4.1% 3.9% 3.8% $2,115 $2,162 $2,166 $219 $209 $222 $581 $844 $729 $232 $290 $309 $440 $519 $528 $675 $965 $861 $33 $45 $45 $528 $573 $609 Q3 2023 Q2 2024 Q3 2024 $3,426 Int. Income Int. Income Int. IncomeInt. Expense Int. Expense Int. Expense $3,147 $3,505 $1,676 $2,102 $2,043 NII $1,471 $1,403 $1,383-1% -6% Securities F.F.1 sold & repos Interest-earning deposits Loans Borrowings Trading liabilities F.F.1 purchased & repos Deposits SHUSA NII ($M) NII & NIM Drivers Stabilization of NII and NIM driven by: Improved Auto Loan margins and higher cash rate Higher interest income on investment securities Offset by: Higher interest-bearing deposits, money market and CD products Higher interest expense on borrowed funds and securities financing activities 1 | Federal funds
16 $20 $112 $(67) $79 $96 $105 $618 $559 $536 $104 $98 $102 $63 $67 $74 $37 $64 $55 $921 $996 $805 3Q 2023 2Q 2024 3Q 2024 Net gain on sale of investment securities Asset and wealth management fees Capital market revenue Lease income Consumer and commercial fees Miscellaneous income, net Non-Interest Income % Change YoY QoQ +49% (14%) +18% +11% (2%) +4% (13%) (4%) +32% +9% (419)% (159)% Non-interest income decreased 19% QoQ and 13% YoY driven by: Decreased miscellaneous income2 due to strategic activities within CBB Decreased lease income due to less active leased vehicle units Offset by: Increased net gains recognized in earnings due to an increase from trading securities gains Increased fees within CIB (SanCap), Wealth, CBB, and Auto Non-Interest Income ($M) Non-Interest Income Drivers -19% -13% 1 | Includes equity investment income/(expense), net, excludes asset and wealth management fees 2 | During Q3, the Company sold ~$1.3B of personal unsecured loans to a third party. The transaction resulted in a loss on sale of ~$106.8M, offset by a release of the ACL in the amount of ~$101.8M 1
17 % Change YoY QoQ +45% +18% (8%) +3% +1% +4% +7% +1% (2%) (1%) +1% (0)% $528 $534 $533 $161 $159 $157 $184 $195 $196 $87 $84 $87 $480 $430 $443 $124 $153 $180 3Q23 2Q24 3Q24 $1,564 $1,553 $1,596 Expenses increased 3% QoQ and 2% YoY driven by: Investment in continued banking system build-outs Increase in regulatory fees and litigation reserves Offset by: Lower auto lease volumes, resulting in lower depreciation and lease expense, YoY +3% +2% Expenses ($M) Expense Drivers Other expense Lease Loan Technology Occupancy and equipment Compensation and benefits General, Administrative, and Other Expenses
18 Credit Loss Expense Credit Loss Expense ($M) Total ACL ($M) Total Net Charge-offs ($M) Total ACL Coverage ($M) 1 | Allowance for loan and lease losses 2 | Allowance for credit losses $856 $619 $405 $481 $431 3Q23 4Q23 1Q24 2Q24 3Q24 $618 $683 $598 $511 $595 3Q23 4Q23 1Q24 2Q24 3Q24 30-Sep-23 30-Jun-24 30-Sep-24 ALLL1, beginning of period (“BOP”) $ 6,733 $ 6,742 $ 6,718 Credit loss expense 869 485 438 Net charge-offs (618) (511) (595) ALLL1, end of period (“EOP”) 6,984 6,718 6,561 Reserve for unfunded lending commitments, BOP 86 57 53 Credit loss (benefit) unfunded lending commitments, EOP (13) (4) (7) Reserve for unfunded lending commitments, EOP 73 53 46 Total ACL2, EOP $ 7,057 $ 6,771 $ 6,607 $7,057 $6,993 $6,799 $6,771 $6,607 7.3% 7.5% 7.4% 7.3% 7.3% $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 0% 1% 2% 3% 4% 5% 6% 7% 8% 3Q23 4Q23 1Q24 2Q24 3Q24 ACL coverage $ ACL coverage %
19 1 At a Glance 2 Results Appendix 4 Index 3 Core Business Activities
20 Consumer Corporate & Investment Banking Commercial Wealth Management Market-leading full-spectrum auto lender CBB, attracts customers nationwide through its new digital banking platform, Openbank C&I: Provides services to a range of commercial customers CRE: Primarily multifamily loans, and robust servicing fee income from FDIC joint venture Q3 CRE portfolio consists mostly of multifamily1,2,3 Financing and banking services to corporations with institutional broker dealer, SanCap Equity research reports Investment banking Banco Santander International, leads in international private banking Servicing LatAm UHNW and HNW individuals Four investment platforms Edge Act corporation Present in Miami, New York, Houston & San Diego 1 | Multifamily Construction is within “CRE” in SHUSA public filings . Total Multifamily for 10Q = $9.98B and Total other CRE = $8.83B. 2 | Excludes commercial vehicle financing. 3 | Does not include the acquired 20% interest in a structured limited liability company (the "Structured LLC") for approximately $1.1 billion. The Structured LLC was established by the FDIC to hold and service a $9 billion portfolio primarily consisting of New York-based rent-controlled and rent-stabilized multifamily loans retained by the FDIC following a recent bank failure. SBNA classifies its 20 percent interest in the Structured LLC as an AFS debt security. Business Activities Overview Sales & trading US fixed-income market making Structuring and advisory services Preferred Lending StrategicPass-Through Auto Relationships: Multifamily 53% Multifamily Construction 18% Office 10% Retail 6% Industrial 8% Other 5%
21 Prime Loans $2,483 Prime Loans $2,659 Prime Loans $2,305 Non-Prime Loans $3,448 Non-Prime Loans $3,860 Non-Prime Loans $3,352 Lease $793 Lease $1,321 Lease $1,379 $6,724 $7,841 $7,036 Q3 2024Q2 2024Q3 2023 Income Statement Data1 Loans and Deposits ($B) Consumer Activities | Auto and CBB Auto Distribution by FICO Segment3,4 Total Auto Originations ($M) 1 | Quarter-to-date 2 | Prior period data has been recast 3 | Data as of September 30, 2024 4 | Auto loans excludes commercial fleet and loans held-for-sale (“LHFS”) 5 | Ending balance loans and leases held-for-investment (“HFI”) 16% 17% 11% 9% 9% 7% 7% 6% 6% 53% 51% 51% 41% 38% 38% 35% 34% 33% 17% 17% 18% 16% 16% 16% 17% 18% 19% 14% 15% 21% 34% 38% 39% 41% 42% 42% 2016 2017 2018 2019 2020 2021 2022 2023 Q3'24 >=640 600-639 <600 No FICO 3Q 2024 3Q 2023 2 Total Consumer Activities Auto CBB Auto CBB YoY ($M) NII $908 $360 $927 $407 (4.9)% Non-interest income 546 (39) 624 59 (25.8)% Credit losses expense/(benefit) 520 (83) 783 32 (46.3)% Total expenses 772 348 817 360 (4.8)% Income/(loss) before income taxes 162 56 (49) 74 748.5% ($B) 2024 2023 YoY Total assets as of 9/30 $ 62 $ 10 $ 63 $ 13 (4.7)% 3Q 2024 3Q 2023 2 YoY Residential mortgages $ 4.5 $ 4.9 (7.9)% Home equity loans and lines of credit 2.2 2.6 (15.2)% Auto loans 44.9 44.9 0.1% Personal unsecured loans 1.9 4.4 (56.9)% Other consumer 0.1 0.1 (39.6)% Total consumer loans 5 53.6 56.9 (5.8)% Total consumer deposits $ 47.6 $ 47.3 0.8%
22 Income Statement Data1 Loans and Deposits ($B) Commercial Activities | CRE, Multifamily, and C&I Q3 CRE Portfolio and Geographic Diversification3 Q3 Portfolio by maturity and interest rate3 ($M) 1 | Quarter-to-date 2 | Prior period data has been recast 3 | Data as of September 30, 2024 4 | Ending balance loans and leases HFI $- $1.0 $2.0 $3.0 $4.0 $5.0 In One Year or Less One to Five Years Five+ Years Fixed Rate CRE Fixed Rate Multifamily Variable Rate CRE Variable Rate Multifamily Multifamily 53% Multifamily Construction 18% Office 10% Retail 6% Industrial 8% Other 5% CRE TOTAL ~ $18.8B NY 31% NJ 12% TX 9%MA 8% Other 40% 3Q 2024 3Q 20232 Total Commercial Activities C&I CRE C&I CRE YoY ($M) NII $ 92 $ 121 $ 81 $ 115 9.3% Non-interest income 18 21 11 8 106.4% Credit losses expense/(benefit) (13) 16 (8) 56 (93.1)% Total expenses 51 33 59 34 (10.1)% Income/(loss) before income taxes 72 93 41 33 124.8% ($B) 2024 2023 YoY Total assets as of 9/30 $ 4 $ 24 $ 5 $ 22 0.9% 3Q 2024 3Q 2023 2 YoY ($B) C&I loans $ 9.8 $ 12.3 (20.6)% CRE loans 8.8 8.6 2.8% Other commercial 7.5 7.4 1.9% Multifamily loans 10.0 10.8 (7.8)% Total commercial loans 4 36.1 39.1 (7.7)% Total commercial deposits 13.4 $ 12.8 4.4%
23 CIB Income Statement Data Wealth Income Statement Data 3Q 2024 3Q 20231 YoY ($M) NII $ 26 $ 49 (46.8)% Non-interest income 153 90 69.4% Credit losses expense / (benefit) (8) (5) 58.7% Total expenses 225 160 40.7% Income/(loss) before income taxes (38) (16) 141.9% ($B) 2024 2023 YoY Total assets as of 9/30 $ 27 $ 28 (0.1)% Total deposits as of 9/30 4.7 4.0 17.9% 3Q 2024 3Q 20231 YoY ($M) NII $ 53 $ 67 (20.2)% Non-interest income 82 67 23.1% Credit losses expense / (benefit) - 0.2 - Total expenses 70 73 (3.7)% Income/(loss) before income taxes 65 60 8.1% Asset and wealth management fees 74 63 17.6% ($B) 2024 2023 YoY Total assets as of 9/30 $ 8 $ 7 9.9% Total deposits as of 9/30 5.6 5.3 6.7% 1 | Prior period data has been recast CIB & Wealth Management
24 1 At a Glance 2 Results Appendix 4 Index 3 Core Business Activities
25 Loan Delinquency by Business Portfolio 1 | Based on a percentage of financing receivables for their respective loan businesses 2 | Other consumer ($40.4M in Q3 2024) primarily includes recreational vehicle ("RV") and marine loans 3 | Other commercial ($7.5B in Q3 2024) includes commercial equipment vehicle financing leveraged leases and loans Consumer: 30-89 Days Past Due1 Consumer: 90+ Days Past Due1 Commercial: 30-89 Days Past Due1 Commercial: 90+ Days Past Due1 0.0% 5.0% 10.0% 15.0% Residential Mortgage Home Equity Auto Loans Personal Unsecured Other Consumer ² 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% Residential Mortgage Home Equity Auto Loans Personal Unsecured Other Consumer ² 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% CRE C&I Multifamily Other Commercial ³ 0.0% 0.5% 1.0% 1.5% 2.0% CRE C&I Multifamily Other Commercial ³
26 Charge-offs and Recoveries by Business Portfolio Net charge-offs1 Charge-offs1,2 Recoveries3 1 | Charge-offs and NCOs are based on a percentage of their respective average loan balances 2 | Includes current period gross write-offs for Q3 2024 by class of financing receivable 3 | Recoveries are based on a percentage of gross charge-offs Consumer NCOs flat YoY, primarily due to current year activity in Auto loans reflecting normalization in credit performance post- pandemic. There has been an increase in NCOs in the personal unsecured loans portfolio due to high borrowing costs and persistent inflation. 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% Commercial Consumer 0.0% 0.4% 0.8% 1.2% 1.6% 2.0% Commercial Consumer 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% Commercial Consumer
27 Q3 ACL was $6.6 billion, a decrease of $385 million from December 31, 2023. The decrease in the ACL was primarily driven by improvement in the macroeconomic outlook for certain macro variables, seasonally expected lower delinquencies in auto loans, sale of certain personal unsecured loans and off-balance sheet securitizations of auto loans and lower exposure in personal unsecured loans. The ACL for the consumer segment decreased by $345 million, and the ACL for the commercial segment decreased $40 million, compared to December 31, 2023. Total Allowance For Credit Losses 1 | Includes ACL for unfunded commitments September 30, 2024 June 30, 2024 December 31, 2023 September 30, 2023 (Unaudited) (Unaudited) (Audited) (Unaudited) Total loans held for investment (“LHFI”) $ 89,686 $ 92,334 $ 93,047 $ 96,000 Total ACL1 6,607 6,771 6,993 7,057 Total Allowance Ratio 7.4% 7.3% 7.5% 7.3% Allowance Ratios ($M)
28 Santander1 A2/Baa1 SHUSA Baa2 SBNA2 Baa1 Santander1 A+/A- SHUSA BBB+ SBNA A- Stable outlook (May 29, 2024) Outlook remains “stable” for all ratings and entities In May 2024, Fitch affirmed our rating of BBB+ and outlook Stable and in July S&P Affirmed our rating of BBB+ and outlook Stable SR. DEBT RATINGS BY SANTANDER ENTITY Santander1 A/A- SHUSA BBB+ SBNA BBB+ Stable outlook (October 19, 2023) Stable outlook (July 26, 2024) Rating Agencies 1 | Senior preferred debt / senior non-preferred debt 2 | SBNA long-term issuer rating
29 SHUSA | Quarterly Trended Statement Of Operations ($M) 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Interest income $ 3,147 $ 3,184 $ 3,254 $ 3,505 $ 3,426 Interest expense (1,676) (1,781) (1,876) (2,102) (2,043) NII 1,471 1,403 1,378 1,403 1,383 Fees & other income 884 693 873 932 750 Other non-interest income 37 36 65 64 55 Net revenue 2,392 2,132 2,316 2,399 2,188 General, administrative, and other expenses (1,564) (1,662) (1,560) (1,554) (1,596) Credit loss expense (856) (619) (405) (481) (431) Income before taxes (28) (149) 351 364 161 Income tax (expense) / benefit 148 91 (8) 50 32 Net income / (loss) 120 (58) 343 414 193 NIM 4.1% 3.9% 3.8% 3.9% 3.8%
30 SHUSA | Non-GAAP Reconciliations ($M) 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 SHUSA pre-tax pre-provision income Pre-tax income / (loss) $ 304 $ 121 $ 325 $ 639 $ (28) ($149) $351 $364 $161 (Release of) / provision for credit losses 636 761 542 209 856 619 405 481 431 Pre-tax pre-provision Income 940 882 867 848 828 470 756 846 592 CET1 to risk-weighted assets CET1 capital 18,025 16,256 15,916 15,942 15,788 14,205 14,173 14,346 14,512 Risk-weighted assets 118,818 123,031 125,707 124,502 123,142 114,789 113,115 113,864 114,104 Ratio 15.2% 13.2% 12.7% 12.8% 12.8% 12.4% 12.5% 12.6% 12.7% Tier 1 leverage Tier 1 capital 18,370 17,101 16,646 17,672 17,518 16,435 16,288 16,461 16,627 Avg total assets, leverage capital purposes 165,054 167,686 172,191 177,521 169,570 167,284 167,080 166,480 169,947 Ratio 11.1% 10.2% 9.7% 10.0% 10.3% 9.8% 9.7% 9.9% 9.8% Tier 1 risk-based Tier 1 capital 18,370 17,101 16,646 17,672 17,518 16,435 16,288 16,461 16,627 Risk-weighted assets 118,818 123,031 125,707 124,502 123,142 114,789 113,115 113,864 114,104 Ratio 15.5% 13.9% 13.2% 14.2% 14.2% 14.3% 14.4% 14.5% 14.6% Total risk-based Risk-based capital 20,396 19,607 19,171 20,179 20,027 18,838 18,690 18,871 19,021 Risk-weighted assets 118,818 123,031 125,707 124,502 123,142 114,789 113,115 113,864 114,104 Ratio 17.2% 15.9% 15.3% 16.2% 16.3% 16.4% 16.5% 16.6% 16.7%
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