SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the month of October, 2013

Commission File Number: 001-12518

Banco Santander, S.A.

(Exact name of registrant as specified in its charter)

Ciudad Grupo Santander

28660 Boadilla del Monte (Madrid) Spain

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F  x             Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes  ¨            No  x

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes  ¨            No   x

Banco Santander, S.A.

TABLE OF CONTENTS

INCORPORATION BY REFERENCE

Items 1 and 2 of this report on Form 6-K shall be deemed to be incorporated by reference into the registration statement on Form F-3 (Registration Number: 333-185153) of Banco Santander, S.A. and to be a part thereof from the date on which this report is filed, to the extent not superseded by documents or reports subsequently filed or furnished.

Item
1	Press release regarding 3rd quarter 2013 results.
2	Financial Report January-September 2013.
3	Analysts presentation for 3rd quarter 2013 results.

ITEM 1

Press Release

Santanders profit rose 77% to EUR 3,310 million

in the first nine months

• BUSINESS. Deposits rose 5% to EUR 633,433 million, while loans fell 2%, to EUR 686,821 million. In emerging markets, loans and deposits both grew by 13%, while in the Group’s mature markets deposits increased 3% and loans decreased 6%.

• LIQUIDITY. The loan-to-deposit ratio was 85% in Spain, where the volume of deposits exceeded loans, and 108% for the Group.

• CAPITAL. Strong capital generation raised the Banks Basel II core capital ratio by 0.45 point in the quarter and 1.23 points year-on-year to 11.56%.

• NPLs. The Group’s non-performing loan rate was 5.43%, up 0.25 point from the previous quarter. In Spain it rose 0.65 point to 6.40%, partly because of the decline in loan volumes, while provisions declined. In Brazil, NPLs fell sharply for the second quarter in a row, while in the United Kingdom they declined for the third quarter running.

• DIVERSIFICATION. Latin America contributed 49% of group profit (Brazil 24%, Mexico 11% and Chile 6%), Europe accounted for 40% (U.K. 15%, Spain 7%, Germany and Poland 6% each) and the United States 11%.

• Spain: Net attributable profit was EUR 367 million (-51%) and the trend in income improved. Deposits grew 12% and loans fell 5%. Santander has gained market share in loans (0.4 point) and deposits (1.0 point) in the last year. So far this year it has provided EUR 43 billion of new corporate funding.

• United Kingdom: Ordinary net attributable profit was EUR 793 million (675 million pounds, +7%). Lending fell 5%, with corporate loans rising 11%, and deposits dropped 2%, with a 71% increase in current account volumes.

• Brazil: Net attributable profit was EUR 1,277 million (3,548 million reais, -13%). Revenues were stable compared with the previous quarter and costs increased by less than inflation. Loans grew 7% and deposits rose 8%.

Madrid, October 24, 2013 - Banco Santander made an attributable profit of EUR 3,310 million in the first nine months of the year, which was a 77% increase on the same period last year.

Banco Santander’s chairman, Emilio Botín, said: “After several years of high levels of write-offs and reinforcement of capital, Banco Santander is preparing for a new period of increased profitability.”

Comunicación Externa Ciudad Grupo Santander Edificio Arrecife Pl. 2 28660 Boadilla del Monte (Madrid) Telf.: 34 91 289 5211 email: comunicacionbancosantander@gruposantander.com

2

Results

The results of the first nine months reflect a backdrop of deleveraging in mature economies and more moderate growth in emerging markets. Despite this, Banco Santanders revenues were steady at just over EUR 10 billion in constant euro terms each quarter. Thus, gross income was EUR 30,348 million in the nine months, down 3% in comparable terms from the same period last year.

Costs remained at around EUR 5 billion a quarter to total EUR 14,858 million in the nine months, an increase of 3% excluding the impact of exchange rate and consolidation perimeter changes. Synergies from the mergers in Spain and Poland are beginning to materialise, although the main impact will be felt in the next two years.

Grupo Santander Results

Good quarterly performance (excluding exchange rate impact).

Profit growth due to stable gross income and lower provisions

			Var. / 9M’12						Var. / 2Q’13
EUR million	9M’13		%		%*		3Q’13		%		%**
Gross income		30,348		-8.4		-2.9		9,738		-5.6		-0.4
Operating expenses		-14,858		-1.2		3.3		-4,862		-2.8		1.5
Net operating income		15,490		-14.3		-8.0		4,876		-8.4		-2.2
Loan-loss provisions		-8,583		-9.7		-3.7		-2,600		-15.2		-9.4
Profit before tax		5,482		-21.3		-14.1		1,766		3.1		11.1
Attributable profit		3,310		76.9		110.4		1,055		0.5		8.5

Note: in 9M’13: EUR 270 million in capital gains and EUR 270 million in provisions. In 9M12: EUR 1,029 million in capital gains and EUR 3,475 million in provisions

(*) Excluding perimeter and exchange rate differences

(**) Excluding exchange rate impact

The difference between revenues and costs resulted in net operating income, or profit generation capacity, of EUR 15,490 million, which is a fall of 8% excluding the impact of exchange rate and perimeter differences. This put the cost-to-income ratio at 49%, 12 points better than the average ratio for comparable banks of more than 60%.

A decline in provisions and write-offs resulted in net attributable profit of EUR 3,310 million, 77% more than the first nine months of last year, when net profit was EUR 1,872 million.

Fifty-five percent of the profit came from emerging economies (Latin America and Poland) and the rest from mature markets. Brazil was the biggest single contributor, accounting for 24% of the total, followed by the U.K. (15%), Mexico and the U.S. (11% each) and Spain (7%).

Comunicación Externa Ciudad Grupo Santander Edificio Arrecife Pl. 2 28660 Boadilla del Monte (Madrid) Telf.: 34 91 289 5211 email: comunicacionbancosantander@gruposantander.com

3

Balance Sheet

The Groups deposits rose 5% to EUR 633,433 million in the first nine months and loans fell 2% to EUR 686,821 million. The performances of the Groups mature and emerging markets differed. Deposits increased 3% and loans fell 6% in mature markets, while emerging market growth was better balanced, with a 13% increase in both deposits and loans.

Rising savings rates and gains in market share in deposits, combined with the deleveraging underway in mature markets, helped improve the Groups liquidity position. At the beginning of 2009, the loan-to-deposit ratio was 150%, meaning there were 50% more loans than deposits, but by the end of September this year the ratio was 108%.

The improvement in liquidity is particularly evident in Spain, where Santander has more deposits than loans with a ratio of 85%. This is largely the result of strong growth in deposits. In the last year, Santander has captured EUR 20 billion in deposits and has increased its market share by one point. In Spain, deposits grew 12%, despite a sharp decline in term deposit interest rates, and loans fell by 5%, compared with September 2012. Even so, Santander provided EUR 43 billion of new financing to Spanish companies. The number of Spanish customers with multiple products (and defined as linked) has risen by 90,000 so far this year.

Business also improved in the United Kingdom, with a focus on increased customer loyalty and better quality of service. Overall loans fell 5%, because of the decrease in mortgage lending, but loans to SMEs rose 11% and Santander gained 0.7 point of market share. Deposits overall declined 2%, as high interest accounts matured, but balances in Santanders current accounts jumped by 71%, or GBP 10.2 billion, helped by the addition of 900,000 new customers.

Comunicación Externa Ciudad Grupo Santander Edificio Arrecife Pl. 2 28660 Boadilla del Monte (Madrid) Telf.: 34 91 289 5211 email: comunicacionbancosantander@gruposantander.com

4

In Brazil, deposit growth accelerated to 8%, with strong growth in demand and term deposits. Lending rose 7% (more than at other comparable banks), helped by mortgage and corporate loans. In Mexico, loans and deposits both rose 9% and Santander achieved market share gains in key segments such as SMEs, where it is the market leader, and in mortgages, insurance and demand deposits.

Customer loans

EUR million

			% var o/
	30.09.13		30.09.12*
Continental Europe		271,878		(3.7	)
o/w: Spain		164,810		(5.0	)
Portugal		24,712		(6.7	)
Poland		16,298		76.3
Santander Consumer Finance		55,898		(1.6	)
United Kingdom		237,138		(4.7	)
Latin America		135,832		8.3
o/w: Brazil		69,395		6.5
Mexico		21,007		9.0
Chile		29,697		10.3
USA		38,184		(5.1	)
Operating areas		683,033		(1.9	)
Total Group		686,821		(2.3	)

(*). - Change in constant currency and excluding repurchase agreements.

Customer deposits

EUR million

			% var o/
	30.09.13		30.09.12*
Continental Europe		262,970		9.7
o/w: Spain		188,824		12.1
Portugal		24,185		(3.0	)
Poland		17,404		62.2
Santander Consumer Finance		30,726		(7.1	)
United Kingdom		197,252		(2.1	)
Latin America		132,114		8.5
o/w: Brazil		65,801		7.9
Mexico		25,783		8.8
Chile		22,076		4.9
USA		36,181		(2.0	)
Operating areas		628,518		4.8
Total Group		633,433		4.6

(*). - Change in constant currency including retail commercial paper and letras financieras, and excluding repurchase agreements.

The Groups non-performing loan rate stood at 5.43% at the end of September, or 0.25 point more than the previous quarter. The impact of provisions for non-performing loans on results was EUR 2.6 billion in the third quarter, which was equivalent to 1.77% of average outstanding loans. The provisions, known as the cost of credit, peaked at 2.38% in the fourth quarter of last year and remained at that level in the first quarter, but have fallen for the last two quarters.

NPL rates varied widely from one market to another. In Spain, the ratio was 6.4%, up 0.65 point in the quarter. Half the increase is due to the decline in loan volumes and the other half to newly non-performing loans. The NPL ratio already includes loans that have been refinanced, which were reclassified as doubtful for subjective reasons in the second quarter.

By contrast, in Brazil there was a marked decline in the NPL rate for the second quarter running. It dropped from a peak of 6.9% at the end of the first quarter to 6.12% in September, thanks to a fall of 0.41 point in the second quarter and 0.37 point in the third. Similarly, in the UK the ratio has declined for three quarters in a row to stand at 1.98%, down from a peak of 2.05% at the close of 2012.

Comunicación Externa Ciudad Grupo Santander Edificio Arrecife Pl. 2 28660 Boadilla del Monte (Madrid) Telf.: 34 91 289 5211 email: comunicacionbancosantander@gruposantander.com

5

The Basel II capital ratio stood at 11.56% at the end of the third quarter, an increase of 0.45 point in the last three months and 1.23 points in a year. Santanders capital structure puts it in a very comfortable position to meet the Basel III ratios, which come into force on January 1, 2014.

The strength of the balance sheet, which is a result of high levels of provisions made in recent years, a healthy liquidity position and strong capital generation mean Banco Santander is well placed to face a period of growth in its ten main markets. The economies of all ten of its core markets are set to grow in 2014, according to IMF forecasts, something that has not happened since 2007.

This performance allows the Bank to maintain its shareholder remuneration unchanged from 2012. It expects to distribute four scrip option dividends of approximately EUR 0.15 a share each, which shareholders can receive in cash or shares. This represents shareholder remuneration of EUR 0.60 a share for the fifth consecutive year.

Banco Santander has a market capitalisation of around EUR 75 billion, which makes it the biggest bank in the euro zone and one of the top 12 in the world. At the end of September it had 3,281,450 shareholders, 184,786 employees, 102 million customers and 14,561 branches.

More information: www.santander.com

Comunicación Externa Ciudad Grupo Santander Edificio Arrecife Pl. 2 28660 Boadilla del Monte (Madrid) Telf.: 34 91 289 5211 email: comunicacionbancosantander@gruposantander.com

6

FINANCIAL REPORT 2013

KEY CONSOLIDATED DATA

BALANCE SHEET (EUR Million)	Sep’13		Jun’13		(%)			Sep’13		Sep’12		(%)			2012
Total assets		1,192,181		1,223,118		(2.5	)		1,192,181		1,300,006		(8.3	)		1,269,598
Net customer loans		686,821		700,149		(1.9	)		686,821		752,680		(8.7	)		719,112
Customer deposits		633,433		644,934		(1.8	)		633,433		630,072		0.5			626,639
Customer funds under management		954,500		968,565		(1.5	)		954,500		976,938		(2.3	)		968,987
Shareholders’ equity		83,954		83,202		0.9			83,954		81,281		3.3			80,921
Total managed funds		1,316,513		1,342,024		(1.9	)		1,316,513		1,421,634		(7.4	)		1,387,740
INCOME STATEMENT* (EUR Million)	3Q’13		2Q’13		(%)			9M’13		9M’12		(%)			2012
Net interest income		6,285		6,722		(6.5	)		19,659		22,823		(13.9	)		29,923
Gross income		9,738		10,320		(5.6	)		30,348		33,123		(8.4	)		43,406
Pre-provision profit (net operating income)		4,876		5,320		(8.4	)		15,490		18,079		(14.3	)		23,422
Profit from continuing operations		1,300		1,313		(1.0	)		4,121		2,451		68.1			2,993
Attributable profit to the Group		1,055		1,050		0.5			3,310		1,872		76.9			2,295

(*).- Variations w/o exchange rate:

3Q’13 / 3Q’12: Net interest income: -0.6%; Gross income: -0.4%; Pre-provision profit: -2.2%; Attributable profit: +8.5%

9M’13 / 9M’12: Net interest income: -8.1%; Gross income: -2.7%; Pre-provision profit: -8.2%; Attributable profit: +110,4%

EPS, PROFITABILITY AND EFFICIENCY (%)	3Q’13		2Q’13		(%)			9M’13		9M’12		(%)			2012
EPS (euro)		0.10		0.10		(2.6	)		0.31		0.19		59.8			0.23
ROE		5.23		5.21					5.48		3.17					2.91
ROTE		7.38		7.49					7.83		4.68					4.28
ROA		0.43		0.42					0.44		0.26					0.25
RoRWA		1.02		0.94					1.01		0.59					0.56
Efficiency ratio (with amortisations)		49.9		48.4					49.0		45.4					46.0
BIS II RATIO AND NPL RATIOS (%)	Sep’13		Jun’13		(%)			Sep’13		Sep’12		(%)			2012
Core capital (BIS II)		11.56		11.11					11.56		10.38					10.33
NPL ratio		5.43		5.18					5.43		4.34					4.54
NPL coverage		63.9		66.4					63.9		69.5					72.4
MARKET CAPITALISATION AND SHARES	Sep’13		Jun’13		(%)			Sep’13		Sep’12		(%)			2012
Shares (millions at period-end)		11,092		10,810		2.6			11,092		9,899		12.1			10,321
Share price (euros)		6.028		4.902		23.0			6.028		5.795		4.0			6.100
Market capitalisation (EUR million)		66,863		52,989		26.2			66,863		57,363		16.6			62,959
Book value (euro)		7.58		7.71					7.58		8.08					7.88
Price / Book value (X)		0.79		0.64					0.79		0.72					0.77
P/E ratio (X)		14.61		11.46					14.61		22.45					25.96
OTHER DATA	Sep’13		Jun’13		(%)			Sep’13		Sep’12		(%)			2012
Number of shareholders		3,281,450		3,292,650		(0.3	)		3,281,450		3,283,913		(0.1	)		3,296,270
Number of employees		184,786		186,785		(1.1	)		184,786		188,146		(1.8	)		186,763
Number of branches		14,561		14,680		(0.8	)		14,561		14,496		0.4			14,392
INFORMATION ON ORDINARY PROFIT	3Q’13		2Q’13		(%)			9M’13		9M’12		(%)			2012
Attributable profit to the Group*		1,055		1,050		0.5			3,310		4,318		(23.3	)		5,341
EPS (euro)		0.10		0.10		0.5			0.31		0.45		76.9			0.55
ROE		5.23		5.21					5.48		7.31					6.78
ROTE		7.38		7.49					7.83		10.79					9.97
ROA		0.43		0.42					0.44		0.51					0.48
RoRWA		1.02		0.94					1.01		1.16					1.10
P/E ratio (X)		14.61		11.46					14.61		9.73					11.15

(*).- Variations w/o exchange rate: 3Q’13 / 2Q’13: +8.5%; 9M’13 / 9M’12: -17.7%

Note: The financial information in this report has not been audited, but it was approved by the Board of Directors at its meeting on October, 21 2013, following a favourable report from the Audit and Compliance Committee on October, 14 2013. The Committee verified that the information for the quarter was based on the same principles and practices as those used to draw up the annual financial statements.

JANUARY - SEPTEMBER

ITEM 2

FINANCIAL REPORT January—September 2013

3	Key consolidated data
4	The highlights of the Period
6	General background
7	Consolidated financial report
7	Income statement
11	Balance sheet
18	Risk management
21	The Santander share

23	Information by principal segments
24	Continental Europe
35	United Kingdom
38	Latin America
50	United States
53	Corporate Activities
55	Information by secondary segments
55	Retail Banking
57	Global Wholesale Banking
59	Asset Management and Insurance

61	Corporate Governance
61	Significant events in the quarter and subsequent ones
62	Corporate social responsibility

FINANCIAL REPORT 2013

KEY CONSOLIDATED DATA

BALANCE SHEET (EUR Million)	Sep’13		Jun’13		(%)			Sep’13		Sep’12		(%)			2012
Total assets		1,192,181		1,223,118		(2.5	)		1,192,181		1,300,006		(8.3	)		1,269,598
Net customer loans		686,821		700,149		(1.9	)		686,821		752,680		(8.7	)		719,112
Customer deposits		633,433		644,934		(1.8	)		633,433		630,072		0.5			626,639
Customer funds under management		954,500		968,565		(1.5	)		954,500		976,938		(2.3	)		968,987
Shareholders’ equity		83,954		83,202		0.9			83,954		81,281		3.3			80,921
Total managed funds		1,316,513		1,342,024		(1.9	)		1,316,513		1,421,634		(7.4	)		1,387,740
INCOME STATEMENT* (EUR Million)	3Q’13		2Q’13		(%)			9M’13		9M’12		(%)			2012
Net interest income		6,285		6,722		(6.5	)		19,659		22,823		(13.9	)		29,923
Gross income		9,738		10,320		(5.6	)		30,348		33,123		(8.4	)		43,406
Pre-provision profit (net operating income)		4,876		5,320		(8.4	)		15,490		18,079		(14.3	)		23,422
Profit from continuing operations		1,300		1,313		(1.0	)		4,121		2,451		68.1			2,993
Attributable profit to the Group		1,055		1,050		0.5			3,310		1,872		76.9			2,295

(*).- Variations w/o exchange rate:

3Q’13 / 3Q’12: Net interest income: -0.6%; Gross income: -0.4%; Pre-provision profit: -2.2%; Attributable profit: +8.5%

9M’13 / 9M’12: Net interest income: -8.1%; Gross income: -2.7%; Pre-provision profit: -8.2%; Attributable profit: +110,4%

EPS, PROFITABILITY AND EFFICIENCY (%)	3Q’13		2Q’13		(%)			9M’13		9M’12		(%)			2012
EPS (euro)		0.10		0.10		(2.6	)		0.31		0.19		59.8			0.23
ROE		5.23		5.21					5.48		3.17					2.91
ROTE		7.38		7.49					7.83		4.68					4.28
ROA		0.43		0.42					0.44		0.26					0.25
RoRWA		1.02		0.94					1.01		0.59					0.56
Efficiency ratio (with amortisations)		49.9		48.4					49.0		45.4					46.0
BIS II RATIO AND NPL RATIOS (%)	Sep’13		Jun’13		(%)			Sep’13		Sep’12		(%)			2012
Core capital (BIS II)		11.56		11.11					11.56		10.38					10.33
NPL ratio		5.43		5.18					5.43		4.34					4.54
NPL coverage		63.9		66.4					63.9		69.5					72.4
MARKET CAPITALISATION AND SHARES	Sep’13		Jun’13		(%)			Sep’13		Sep’12		(%)			2012
Shares (millions at period-end)		11,092		10,810		2.6			11,092		9,899		12.1			10,321
Share price (euros)		6.028		4.902		23.0			6.028		5.795		4.0			6.100
Market capitalisation (EUR million)		66,863		52,989		26.2			66,863		57,363		16.6			62,959
Book value (euro)		7.58		7.71					7.58		8.08					7.88
Price / Book value (X)		0.79		0.64					0.79		0.72					0.77
P/E ratio (X)		14.61		11.46					14.61		22.45					25.96
OTHER DATA	Sep’13		Jun’13		(%)			Sep’13		Sep’12		(%)			2012
Number of shareholders		3,281,450		3,292,650		(0.3	)		3,281,450		3,283,913		(0.1	)		3,296,270
Number of employees		184,786		186,785		(1.1	)		184,786		188,146		(1.8	)		186,763
Number of branches		14,561		14,680		(0.8	)		14,561		14,496		0.4			14,392
INFORMATION ON ORDINARY PROFIT	3Q’13		2Q’13		(%)			9M’13		9M’12		(%)			2012
Attributable profit to the Group*		1,055		1,050		0.5			3,310		4,318		(23.3	)		5,341
EPS (euro)		0.10		0.10		0.5			0.31		0.45		76.9			0.55
ROE		5.23		5.21					5.48		7.31					6.78
ROTE		7.38		7.49					7.83		10.79					9.97
ROA		0.43		0.42					0.44		0.51					0.48
RoRWA		1.02		0.94					1.01		1.16					1.10
P/E ratio (X)		14.61		11.46					14.61		9.73					11.15

(*).- Variations w/o exchange rate: 3Q’13 / 2Q’13: +8.5%; 9M’13 / 9M’12: -17.7%

Note: The financial information in this report has not been audited, but it was approved by the Board of Directors at its meeting on October, 21 2013, following a favourable report from the Audit and Compliance Committee on October, 14 2013. The Committee verified that the information for the quarter was based on the same principles and practices as those used to draw up the annual financial statements.

JANUARY - SEPTEMBER 4

FINANCIAL REPORT 2013 HIGHLIGHTS OF THE PERIOD

u Income statement: (more detail on pages 7 - 10)

• Attributable profit in the third quarter of EUR 1,055 million (EUR 1,050 million in the second). Compared to the second quarter, significant negative impact of the movement in exchange rates on gross income and costs (-4 / -5 p.p.). Excluding this:

• Stable gross income (-0.4%) in an environment of low interest rates and low growth in loans in mature markets and some pressure on spreads, particularly in Brazil.

• Costs increased 1.5%, mainly due to those associated with business development. The integrations proceeded well, and the first synergies were generated, which will accelerate in the coming quarters.

• Loan-loss provisions were 9.4% lower. Of note was the reduction in Brazil. The Group’s cost of credit improved to 1.77% (2.20% in the third quarter of 2012).

• Attributable profit of EUR 3,310 million in the first nine months, 76.9% more than in the same period of 2012

• The year-on-year comparison benefits from lower provisions for real estate, but still affected by the low economic growth and the Group’s priority of strengthening the balance sheet.

u Strong balance sheet: (more detail on pages 11 - 20)

• The BIS II core capital ratio was 11.56% at the end of September, up 45 b.p. in the quarter and 123 b.p. in the year.

• The Group’s liquidity ratio (net loan-to-deposit ratio) remained at a very comfortable level of 108% (113% in December and 117% in September 2012).

• The Group’s NPL ratio stood at the end of September at 5.43% (+25 b.p. in the quarter). Coverage was 64%, in line with June.

• Of note was the further decline in Brazil’s NPL ratio (-37 b.p.). Spain’s was 65 b.p. higher, sharply impacted by the fall in the denominator. Worth mentioning in the rest of the Group was the stability in the UK and the US, and an excellent ratio at Santander Consumer Finance. Mexico’s ratio was higher because of homebuilders, without them, it was virtually unchanged.

u Comercial strategy: (more detail on page 55)

• A new Global Retail Banking Division was created in order to foster the franchise’s profitable and recurring growth, with management focused on customers, that better exploits the opportunities offered by Santander’s international position.

• As part of the strategy to boost SMEs and increasing the Group’s penetration of this target segment, various projects were launched including the “Plan 10.000” in Spain, “Breakthrough” in the UK and “Santander Pymes” in Latin America.

• The Group is also focusing on the affluent segment with “Santander Select”. After its success in Spain, it is being implemented in Mexico, Chile and more recently in Brazil, by opening specialized branches and offering products tailored for this segment.

• On October 17, Sovereign Bank changed its name to Santander Bank completing the change of brand process and taking an essential step forward in developing the Santander model in the US.

u The Santander share: (more detail on page 21)

• The share price at the end of September was EUR 6.028 (+22.9% in the quarter and -4.0% y-o-y).

• In July, and under the Santander Dividendo Elección programme (scrip dividend), shareholders were able to opt to receive in cash or in shares the amount equivalent to the first interim dividend (EUR 0.15 per share). Those who chose the latter option represent 86% of the capital stock.

• Shareholders can also receive the amount equivalent to the second interim dividend (EUR 0.15) in November in cash or shares.

5 JANUARY - SEPTEMBER

HIGHLIGHTS OF THE PERIOD FINANCIAL REPORT 2013

u Business areas: (more detail on pages 22 - 60)

• Continental Europe: attributable profit of EUR 275 million in the third quarter, 10.0% more than in the second, due to lower loan-loss provisions (-4,8%), as gross income (-0.4%) and operating expenses (-0.5%) remained stable. Attributable profit in the first nine months was EUR 833 million.

• United Kingdom: attributable profit in the third quarter of £261 million, 16.7% more than in the second quarter. Of note: net interest income rose (+8.8%) for the third straight quarter, with improving asset spreads and lower funding cost, costs remained under control (-5.2%), absorbing the investments in business development. The success of the 1|2|3 product range continues and business diversification is being enhanced, with a higher share from corporates. Attributable profit for the first nine months was £675 million.

• Latin America: attributable profit of EUR 733 millones in the third quarter, 7.1% lower than in the second quarter (excluding exchange rate). Profit before tax and minority interests was virtually unchanged, due to the net between a rise of 1.0% in gross income and of 4.1% in cost (for business development and seasonal impacts) and a drop of 3.0% in provisions, for Brazil. Moreover, volumes continued to grow in the quarter, producing high one-digit rises in twelve months. Attributable profit for the first nine months was EUR 2,589 millones.

• United States: attributable profit in the third quarter of $217 million, 12.3% lower than in the second. Santander Bank results were affected by lower volumes and sales of ALCO portfolios, partially offset by provisions recovery. Additionally, SCUSA contributed $97 million in the third quarter. Attributable profit for the first nine months was $772 million.

u Other significant events: (more detail on page 61)

• Banco Santander Brazil announced that it will optimise its capital structure by replacing common equity (Core Tier 1) capital of BRL 6,000 million with new issue instruments for an equivalent amount eligible as regulatory capital (additional Tier I and Tier II), which will be offered to shareholders.

• Santander Consumer and El Corte Inglés, a leading department store in Spain, reached a strategic agreement in consumer financing which incudes the acquistion of 51% of Financiera El Corte Inglés for around EUR 140 million. The agreement will enable Santander to consolidate its leadership position in Europe in the consumer finance market and will increase the diversification of its portfolio in Spain and Portugal.

Distribution of ordinary attributable profit by operating geographic segments*. 9M’13

(*) Excluding Spain’s run-off real estate

Distribution of ordinary attributable profit by operating business segments*. 9M’13

JANUARY - SEPTEMBER 6

FINANCIAL REPORT 2013 GENERAL BACKGROUND

General background

Grupo Santander conducted its activity against a backdrop of still weak growth but which is beginning to show signs of improvement. Europe is coming out of recession, the UK and the US are laying the foundations of recovery and China’s growth remains solid despite a slowdown. In this environment, the main central banks insisted on keeping their interest rates low for a longer time, signalling that they will maintain the monetary stimulus packages.

In the US, the recovery of private domestic demand, well founded in an expanding housing sector, the fall in the jobless rate and the banking sector’s financing capacity are the main drivers of GDP growth (+0.6% in the second quarter over the first quarter). Despite some uncertainties (unemployment, fiscal policy, etc.) the Federal Reserve continues to seek to scale back its asset purchases, although it intends to maintain short-term interest rates at their current levels until 2015.

Latin America’s economies and financial markets reflect the impact on currencies and investment flows of a possible change in the Fed’s liquidity injection policies, which varies from country to country.

In Brazil, one-off factors spurred growth significantly in the second quarter (1.5% quarter-on-quarter; 3.3% year-on-year), though without changing the scenario for the whole year. The persistence of inflation led to further hikes in the Selic benchmark rate (to 9.5%), but this did not prevent the real from depreciating more. Only the Fed’s decision to maintain in the short term the volume of bond purchases enabled the currency to recover a little.

The Mexican economy remained weak in the second quarter (+1.5% year-on-year compared with +3.3% in 2012) because of the lower push from the public sector. Private consumption and investment, however, were still very strong (+3.0% and +9.9%, respectively), which pointed to an upturn in the second half over the first, that began to be seen in the indicators for July and August. One factor here was the central bank’s further cut of 25 b.p. in its benchmark rate in the third quarter to 3.75%.

Chile’s growth remains high (4% year-on-year in the second quarter), despite weaker consumption and investment, and a less favourable external environment. With inflation under control, the central bank is beginning to orientate monetary policy toward growth. In October the key interest rate was cut by 25 b.p. to 4.75%, the first cut since January 2012.

After six straight quarters of negative growth, the euro zone registered GDP in the second quarter (+0.3% quarter-on-quarter). Of note was the growth in Germany (+0.7%), France (+0.5%) and Portugal (+1.1%), and smaller declines in Spain (-0.1%) and Italy (-0.3%).

The third quarter confidence indicators continued to improve. One factor here is the European Central Bank’s intention to keep interest rates “at their current level (0.5%) or lower for a long period of time” in a context of controlled inflation and with no pressures in the medium term, which contributed to the strengthening of the euro against the dollar un the quarter.

Spain is also emerging from recession. After the stabilization of the second quarter, the third quarter indicators, particularly affiliation to Social Security and confidence indexes, point to positive growth rates although very low ones. This change of trend is supported by a less restrictive fiscal policy, which is containing the fall in domestic demand, and greater competitiveness (lower output costs and very low inflation) that is boosting export growth.

The markets’ greater confidence in a sustained recovery together with a gradual correction of imbalances (there is still room for improvement) and the progress made in structural reforms, both in Spain and in European governance, make further reductions in the risk premium possible. At the end of the third quarter, Spain’s risk premium over 10-year German bonds was around 250 b.p. (300 b.p. in June 2013; 395 b.p. at the end of 2012 and a high of 637 b.p. in July 2012).

The UK economy continued to accelerate in the second quarter (+0.7% quarter-on-quarter). Enhanced confidence, renewed demand for housing and the good evolution of exports were the drivers, and meant revising upward the growth prospects for 2013 and 2014, which contributed to the appreciation of the sterling against the dollar and the euro. In addition, an improvement in financial conditions and the Bank of England’s new strategy of conditioning interest rates on the unemployment rate (assuming price and financial stability) should help to reinforce the recovery trends.

In Poland, activity was stronger in the second quarter (+0.8% year-on-year) after the low reached in the first quarter (+0.5%) . This change of trend was due to the sharp fall in official interest rates (from 4.75% in November 2012 to 2.50% in July 2013) in an environment of contained inflation, which aided the recovery in the manufacturing sector and fuelled domestic demand, strong exports and a weaker zloty.

EXCHANGE RATES: PARIDAD 1 EURO / CURRENCY PARITY

	Average (income statement)				Period-end (balance sheet)
	9M’13		9M’12		30.09.13		31.12.12		30.09.12
US$		1.3166		1.2799		1.3505		1.3194		1.2930
Pound		0.8519		0.8116		0.8360		0.8161		0.7981
Brazilian real		2.7787		2.4498		3.0406		2.7036		2.6232
New Mexican peso		16.6778		16.9314		17.8463		17.1845		16.6085
Chilean peso		642.3215		626.1244		682.8803		631.7287		611.5567
Argentine peso		6.9340		5.7094		7.8228		6.4865		6.0655
Polish zloty		4.2003		4.2063		4.2288		4.0740		4.1038

7 JANUARY - SEPTEMBER

CONSOLIDATED FINANCIAL REPORT FINANCIAL REPORT 2013

Grupo Santander. Income statement

u Third quarter attributable profit of EUR 1,055 million. Key points with regard to the second quarter:

• Strong impact of exchange rates on gross income and costs (-4/-5 p.p.). Excluding their effect:

• Stable revenues (-0.4%) in a low interest rate scenario and reduced lending growth in mature markets, and some pressure on spreads, mainly in Brazil.

• Costs increased 1.5%, mainly due to those associated with business development. The impact of synergies will accelerate in the coming quarters.

• Provisions declined 9.4%, notably in Brazil. Cost of credit of 1.77% vs. 2.20% in September 2012.

u Attributable profit of EUR 3,310 million in the first nine months, 76.9% more than in the same period of 2012.

• The year-on-year comparison benefits from reduced real estate provisions, but still affected by low economic growth, low interest rates and the Group’s priority of strengthening the balance sheet.

The Group posted an attributable profit of EUR 1,055 million in the third quarter, similar to that in the second quarter, and further consolidating the return to normality shown since the beginning of the year.

It is necessary to draw attention before comparing the third and second quarters to the strong impact of the movement in exchange rates of various currencies against the euro. The quarter-on-quarter changes in the Group’s total gross income and costs in euros incorporate a negative impact of between 4 and 5 percentage points. This impact is even stronger in the Latin American units (Brazil: -12 p.p.; Mexico: -5 p.p. and Chile: -6 p.p.). In order to make a better analysis of the Group’s evolution, the exchange rate impact has been eliminated.

In gross income:

• Net interest income was similar to the second quarter (-0.6%), with a good performance by banks. Of note were the rises in the UK, Mexico and Poland, which continued the growth trend of previous quarters, and the recovery of Chile and Santander Consumer Finance.

Spain was still affected by the reduction in business volumes and the repricing of mortgages, and Brazil by the impact of the change of mix toward lower risk products/segments, which is reflected in a sharp improvement in the cost of credit.

INCOME STATEMENT (EUR Million)

							Variation												Variation
	3Q’13			2Q’13			(%)			(%) w/o FX			9M’13			9M’12			(%)			(%) w/o FX
Net interest income		6,285			6,722			(6.5	)		(0.6	)		19,659			22,823			(13.9	)		(8.1	)
Net fees		2,332			2,531			(7.9	)		(3.2	)		7,380			7,733			(4.6	)		0.6
Gains (losses) on financial transactions		992			879			12.9			15.4			2,840			2,115			34.3			41.1
Other operating income		129			187			(31.3	)		(30.6	)		470			451			4.2			4.1
Dividends		72			145			(50.7	)		(49.6	)		276			343			(19.4	)		(18.7	)
Income from equity-accounted method		122			114			7.3			12.9			390			340			14.7			21.8
Other operating income/expenses		(65	)		(72	)		(9.4	)		(0.5	)		(196	)		(232	)		(15.5	)		(5.9	)
Gross income		9,738			10,320			(5.6	)		(0.4	)		30,348			33,123			(8.4	)		(2.7	)
Operating expenses		(4,862	)		(5,000	)		(2.8	)		1.5			(14,858	)		(15,044	)		(1.2	)		3.9
General administrative expenses		(4,303	)		(4,400	)		(2.2	)		2.1			(13,130	)		(13,405	)		(2.1	)		3.0
Personnel		(2,431	)		(2,548	)		(4.6	)		(0.4	)		(7,561	)		(7,829	)		(3.4	)		1.5
Other general administrative expenses		(1,871	)		(1,852	)		1.0			5.7			(5,569	)		(5,576	)		(0.1	)		5.2
Depreciation and amortisation		(559	)		(600	)		(6.8	)		(2.9	)		(1,728	)		(1,639	)		5.5			10.4
Net operating income		4,876			5,320			(8.4	)		(2.2	)		15,490			18,079			(14.3	)		(8.2	)
Net loan-loss provisions		(2,600	)		(3,065	)		(15.2	)		(9.4	)		(8,583	)		(9,506	)		(9.7	)		(3.4	)
Impairment losses on other assets		(141	)		(126	)		11.8			12.8			(378	)		(261	)		45.0			45.3
Other income		(369	)		(415	)		(11.2	)		(8.2	)		(1,046	)		(1,344	)		(22.2	)		(15.7	)
Ordinary profit before taxes		1,766			1,713			3.1			11.1			5,482			6,968			(21.3	)		(15.5	)
Tax on profit		(464	)		(393	)		17.9			26.2			(1,353	)		(2,039	)		(33.7	)		(29.2	)
Ordinary profit from continuing operations		1,302			1,320			(1.4	)		6.6			4,130			4,929			(16.2	)		(9.8	)
Net profit from discontinued operations		(0	)		(14	)		(97.0	)		(96.8	)		(14	)		50			—			—
Ordinary consolidated profit		1,302			1,306			(0.3	)		7.7			4,115			4,979			(17.3	)		(11.0	)
Minority interests		246			256			(3.6	)		4.4			805			661			21.7			33.6
Ordinary attributable profit to the Group		1,055			1,050			0.5			8.5			3,310			4,318			(23.3	)		(17.7	)
Net capital gains and provisions		—			—			—			—			—			(2,446	)		(100.0	)		(100.0	)
Attributable profit to the Group		1,055			1,050			0.5			8.5			3,310			1,872			76.9			110.4
EPS (euros)		0.10			0.10			(2.6	)					0.31			0.19			59.8
Diluted EPS (euros)		0.10			0.10			(2.5	)					0.31			0.19			60.0
Pro memoria:
Average total assets		1,201,784			1,255,353			(4.3	)					1,234,813			1,289,241			(4.2	)
Average shareholders’ equity		80,777			80,627			0.2						80,577			78,713			2.4

JANUARY - SEPTEMBER 8

FINANCIAL REPORT 2013 CONSOLIDATED FINANCIAL REPORT

QUARTERLY INCOME STATEMENT (EUR Million)

	1Q’12			2Q’12			3Q’12			4Q’12			1Q’13			2Q’13			3Q’13
Net interest income		7,763			7,622			7,438			7,100			6,652			6,722			6,285
Net fees		2,612			2,556			2,566			2,526			2,516			2,531			2,332
Gains (losses) on financial transactions		797			675			643			583			969			879			992
Other operating income		114			270			67			75			154			187			129
Dividends		61			216			66			80			59			145			72
Income from equity-accounted method		136			120			84			87			154			114			122
Other operating income/expenses		(83	)		(66	)		(83	)		(93	)		(59	)		(72	)		(65	)
Gross income		11,287			11,123			10,713			10,283			10,290			10,320			9,738
Operating expenses		(5,043	)		(4,934	)		(5,067	)		(4,939	)		(4,996	)		(5,000	)		(4,862	)
General administrative expenses		(4,519	)		(4,422	)		(4,464	)		(4,396	)		(4,428	)		(4,400	)		(4,303	)
Personnel		(2,634	)		(2,587	)		(2,608	)		(2,478	)		(2,582	)		(2,548	)		(2,431	)
Other general administrative expenses		(1,885	)		(1,835	)		(1,856	)		(1,918	)		(1,846	)		(1,852	)		(1,871	)
Depreciation and amortisation		(524	)		(512	)		(603	)		(543	)		(569	)		(600	)		(559	)
Net operating income		6,244			6,188			5,646			5,344			5,294			5,320			4,876
Net loan-loss provisions		(3,118	)		(3,401	)		(2,987	)		(3,134	)		(2,919	)		(3,065	)		(2,600	)
Impairment losses on other assets		(83	)		(97	)		(81	)		(592	)		(110	)		(126	)		(141	)
Other income		(487	)		(381	)		(475	)		(105	)		(261	)		(415	)		(369	)
Ordinary profit before taxes		2,556			2,309			2,103			1,512			2,003			1,713			1,766
Tax on profit		(720	)		(657	)		(662	)		(275	)		(496	)		(393	)		(464	)
Ordinary profit from continuing operations		1,836			1,652			1,441			1,237			1,508			1,320			1,302
Net profit from discontinued operations		17			11			22			20			—			(14	)		(0	)
Ordinary consolidated profit		1,853			1,663			1,463			1,257			1,508			1,306			1,302
Minority interests		227			237			198			234			303			256			246
Ordinary attributable profit to the Group		1,627			1,427			1,264			1,024			1,205			1,050			1,055
Net capital gains and provisions		—			(1,304	)		(1,142	)		(601	)		—			—			—
Attributable profit to the Group		1,627			123			122			423			1,205			1,050			1,055
EPS (euros)		0.17			0.01			0.01			0.04			0.12			0.10			0.10
Diluted EPS (euros)		0.17			0.01			0.01			0.04			0.11			0.10			0.10

NET INTEREST INCOME

EUR Million

NET FEES

EUR Million

• Fee income fell 3.2% because of some seasonal features in Spain and declines in income related to GBM in Brazil and the UK. The largest increases were in Mexico (+9%) and Santander Consumer Finance (+5%).

• In other revenues, dividends returned to their usual levels, following a seasonally high second quarter, income by the equity accounted method was higher and also trading gains, which increased due to the GBM units in Europe and Brazil (active management of the portfolios in the latter).

Operating expenses rose 1.5% in the third quarter, with a varied performance by units. They were stable or a little lower in continental Europe and the UK, up 11% in the US, partly due to the costs associated with the rebranding, and 4% higher in Latin America. The latter was due to investments in improving the commercial network and higher amortizations, and in the case of Brazil the entry into force of a collective bargaining agreement.

Net operating income was 2.2% lower over the second quarter.

Loan loss provisions declined 9.4%, basically Brazil
(-11.2%) for the second consecutive quarter, and Corporate Activities, which in the second quarter incorporated a charge related to the merger process in Spain (homogenization of the loan portfolios of Santander and Banesto to the most conservative criteria).

Attributable profit for the first nine months was EUR 3,310 million compared to EUR 1,872 million in the same period of 2012 very affected by real estate provisioning in Spain.

9 JANUARY - SEPTEMBER

CONSOLIDATED FINANCIAL REPORT FINANCIAL REPORT 2013

Several other factors also need to be taken into account when making year-on-year comparisons:

• The macroeconomic context and low interest rates after falling significantly in the countries where the Group conducts its activity, coupled with the Group’s strategy to give preference to capital and liquidity, with the consequent impact on results, mainly via financial costs.

• A negative net perimeter effect on attributable profit of EUR 339 million (18 p.p.) due to the difference between:

• a positive effect from the entry of Kredyt Bank.

• a negative impact from the disposal of the subsidiary in Colombia in the second quarter of 2012, the lower contribution of income by the equity accounted method (due to the reinsurance of Santander’s portfolio of individual life assurance in Spain and Portugal), the rise in minority interests in Mexico and Poland and lower results from insurance because of the materialization of the operation with Aegon.

• The impact of exchange rates on various currencies against the euro was 5 percentage points negative for the whole Group in nine month year-on-year comparisons for revenues and costs.

The impact on the large areas was: negative in Brazil (-11/-12 p.p.), in the UK (-5 p.p.), the US and Chile (-3 p.p. in each one) and positive in Mexico (+2 p.p.).

The performance of the income statement and comparisons with the first nine months of 2012 was as follows:

Gross income was EUR 30,348 million, 8.4% lower year-on-year (-2.9% excluding the perimeter and forex effects).

• Net interest income amounted to EUR 19,659 million and accounted for most of the fall in gross income. This was due to four effects: depreciation of some currencies, the impact of the cost associated with strengthening the Group’s liquidity since the middle of last year, lower volumes associated with deleveraging in some countries and reduced spreads from the decline in interest rates and the change of mix toward lower risk products. These factors could not be offset by the positive impact of the management of spreads, which are still not fully reflected.

• Net fee income was 4.6% lower at EUR 7,380 million and rose 0.7% excluding the perimeter and exchange rate effects. This was due to the better performance of revenue from pension funds (+9.2%), cards (+13.6%), and advising and management of transactions (+48.0%).

• Gains on financial transactions increased 34.3%, mainly due to GBM Europe and active management of balance sheet interest rate risks.

NET FEES (EUR Million)

			Var (%)					Var (%)
	3Q’13		o/2Q’13			9M’13		o/9M’12
Fees from services		1,350		(9.1	)		4,298		(5.7	)
Mutual & pension funds		284		(0.8	)		843		(3.9	)
Securities and custody		162		(7.0	)		514		(2.8	)
Insurance		535		(8.6	)		1,725		(2.7	)
Net fee income		2,332		(7.9	)		7,380		(4.6	)

GROSS INCOME

EUR Million

OPERATING EXPENSES

EUR Million

OPERATING EXPENSES (EUR Million)

			Var (%)					Var (%)
	3Q’13		o/2Q’13			9M’13		o/9M’12
Personnel expenses		2,431		(4.6	)		7,561		(3.4	)
General expenses		1,871		1.0			5,569		(0.1	)
Information technology		270		17.1			748		10.7
Communications		161		17.6			461		(5.8	)
Advertising		148		(2.2	)		435		(11.9	)
Buildings and premises		447		(4.8	)		1,375		4.3
Printed and office material		40		(2.4	)		122		3.0
Taxes (other than profit tax)		108		(12.1	)		327		9.9
Other expenses		698		(0.4	)		2,102		(3.7	)
Personnel and gen. expenses		4,303		(2.2	)		13,130		(2.1	)
Depreciation and amortisation		559		(6.8	)		1,728		5.5
Total operating expenses		4,862		(2.8	)		14,858		(1.2	)

OPERATING MEANS

	Employees				Branches
	9M’13		9M’12		9M’13		9M’12
Continental Europe		59,642		58,365		6,701		6,521
o/w: Spain		28,297		29,808		4,573		4,680
Portugal		5,627		5,721		647		670
Poland		12,499		8,895		836		522
SCF		11,869		12,604		635		638
United Kingdom		25,375		26,683		1,191		1,266
Latin America		87,708		91,269		5,963		5,987
o/w: Brazil		50,409		54,901		3,661		3,782
Mexico		14,486		13,348		1,229		1,123
Chile		12,299		12,339		488		496
USA		9,571		9,452		706		722
Operating areas		182,296		185,769		14,561		14,496
Corporate Activities		2,490		2,377
Total Group		184,786		188,146		14,561		14,496

JANUARY - SEPTEMBER 10

FINANCIAL REPORT 2013 CONSOLIDATED FINANCIAL REPORT

NET OPERATING INCOME

EUR Million

• Income by the equity accounted method, which records the contributions to the Group of Santander Consumer USA and those derived from corporate operations in insurance business in Europe and Latin America, rose 14.7%.

• Lastly, other operating income, including the contribution to the deposit guarantee funds, was EUR 196 million negative.

Operating expenses declined 1.2% year-on-year (+3.3% without the perimeter and exchange rate effects). The performance varied by units. In Europe, both the large retail units as well as the UK continued to reduce their costs or increase them below inflation. Latin America increased because of the expansion of the commercial network and the revision of wage agreements in an environment of higher inflation, while the US reflects in its year-on-year comparison investments in technology and business structure, as well as those associated to rebranding.

As a result, net operating income (pre-provision profit) was EUR 15,490 million.

NET LOANS-LOSS PROVISIONS (EUR Million)

				Var (%)						Var (%)
	3Q’13			o/2Q’13			9M’13			o/9M’12
Non performing loans		2,841			(13.3	)		9,346			(10.3	)
Country-risk		(5	)		—			2			138.1
Recovery of written-off assets		(236	)		10.2			(764	)		(16.6	)
Total		2,600			(15.2	)		8,583			(9.7	)

PROVISIONS

EUR Million

Provisions for loan losses were EUR 8,583 million (-9.7% y-o-y and -3.7% excluding the perimeter and forex effects). Lower provisions in Brazil, the UK, Portugal, SCF and the US, stable in Spain and higher in Latin America, especially in Mexico, with a large one-off charge for homebuilders.

Other asset impairment losses and other results were EUR 1,424 million negative, compared to EUR 1,604 million also negative in the first nine months of 2012.

Profit before tax was EUR 5,482 million. The impact of taxes, discontinued operations and higher minority interests left attributable profit at EUR 3,310 million, 23.3% less than in the first nine months of 2012 (-8.8% excluding the exchange rate and perimeter effects).

After recording in 2012 a net EUR 2,446 million negative (the difference between capital gains of EUR 1,029 million and real estate provisions of EUR 3,475 million), attributable profit was 76.9% higher (+110% excluding perimeter and forex impacts).

Earnings per share were EUR 0.31 compared to EUR 0.19 in the same period of 2012.

The Group’s ROE was 5.5% and return on tangible equity (ROTE, attributable profit/shareholders’ equity less goodwill) 7.8% . In both cases the figures were better than for the whole of 2012 (+2.6 b.p. and +3.5 b.p., respectively).

ATTRIBUTABLE PROFIT TO THE GROUP

EUR Million

EARNING PER SHARE

Euros

11 JANUARY - SEPTEMBER

CONSOLIDATED FINANCIAL REPORT FINANCIAL REPORT 2013

BALANCE SHEET (EUR Million)

							Variation
	30.09.13			30.09.12			Amount			(%)			31.12.12
ASSETS
Cash on hand and deposits at central banks		88,099			95,979			(7,881	)		(8.2	)		118,488
Trading portfolio		153,292			199,727			(46,435	)		(23.2	)		177,917
Debt securities		43,179			41,521			1,658			4.0			43,101
Customer loans		9,998			20,639			(10,641	)		(51.6	)		9,162
Equities		6,080			5,097			983			19.3			5,492
Trading derivatives		79,669			122,472			(42,803	)		(34.9	)		110,319
Deposits from credit institutions		14,367			9,998			4,369			43.7			9,843
Other financial assets at fair value		38,660			29,150			9,510			32.6			28,356
Customer loans		11,878			15,788			(3,911	)		(24.8	)		13,936
Other (deposits at credit institutions, debt securities and equities)		26,782			13,361			13,421			100.4			14,420
Available-for-sale financial assets		93,346			97,189			(3,843	)		(4.0	)		92,267
Debt securities		88,929			92,803			(3,874	)		(4.2	)		87,724
Equities		4,417			4,386			31			0.7			4,542
Loans		725,796			781,509			(55,713	)		(7.1	)		756,858
Deposits at credit institutions		52,939			58,649			(5,711	)		(9.7	)		53,785
Customer loans		664,946			716,253			(51,307	)		(7.2	)		696,013
Debt securities		7,911			6,607			1,305			19.7			7,059
Investments		5,032			4,676			356			7.6			4,453
Intangible assets and property and equipment		16,826			17,055			(229	)		(1.3	)		17,296
Goodwill		23,729			25,178			(1,449	)		(5.8	)		24,626
Other		47,402			49,543			(2,141	)		(4.3	)		49,338
Total assets		1,192,181			1,300,006			(107,825	)		(8.3	)		1,269,598
LIABILITIES AND SHAREHOLDER’S EQUITY
Trading portfolio		128,983			172,388			(43,405	)		(25.2	)		143,241
Customer deposits		15,085			23,086			(8,001	)		(34.7	)		8,897
Marketable debt securities		1			122			(121	)		(99.5	)		1
Trading derivatives		79,816			123,459			(43,643	)		(35.3	)		109,743
Other		34,081			25,721			8,360			32.5			24,600
Other financial liabilities at fair value		48,996			42,259			6,737			15.9			45,418
Customer deposits		28,633			22,788			5,845			25.6			28,638
Marketable debt securities		6,475			6,769			(294	)		(4.3	)		4,904
Due to central banks and credit institutions		13,889			12,702			1,186			9.3			11,876
Financial liabilities at amortized cost		896,554			961,851			(65,297	)		(6.8	)		959,321
Due to central banks and credit institutions		99,054			138,261			(39,207	)		(28.4	)		131,670
Customer deposits		589,716			584,199			5,516			0.9			589,104
Marketable debt securities		174,960			199,256			(24,296	)		(12.2	)		201,064
Subordinated debt		15,300			19,090			(3,791	)		(19.9	)		18,238
Other financial liabilities		17,525			21,044			(3,519	)		(16.7	)		19,245
Insurance liabilities		1,324			1,129			195			17.3			1,425
Provisions		14,665			15,952			(1,287	)		(8.1	)		16,148
Other liability accounts		20,020			24,039			(4,019	)		(16.7	)		22,771
Total liabilities		1,110,542			1,217,618			(107,076	)		(8.8	)		1,188,324
Shareholders’ equity		83,954			81,281			2,672			3.3			81,333
Capital stock		5,546			4,949			597			12.1			5,161
Reserves		75,320			74,862			459			0.6			74,528
Attributable profit to the Group		3,311			1,872			1,439			76.9			2,295
Less: dividends		(223	)		(401	)		178			(44.4	)		(650	)
Equity adjustments by valuation		(12,133	)		(8,561	)		(3,572	)		41.7			(9,474	)
Minority interests		9,818			9,667			151			1.6			9,415
Total equity		81,639			82,388			(749	)		(0.9	)		81,275
Total liabilities and equity		1,192,181			1,300,006			(107,825	)		(8.3	)		1,269,598

JANUARY - SEPTEMBER 12

FINANCIAL REPORT 2013 CONSOLIDATED FINANCIAL REPORT

Grupo Santander. Balance sheet

u Activity continued to reflect the market context:

• Low demand for loans in Europe, particularly in Spain and Portugal. Growth of 8% in Latin America at constant exchange rates, with an improved trend in the quarter.

• Of note in deposits without repos (including retail commercial paper) was the 12% year-on-year growth in Spain. Greater focus on costs and on marketing mutual funds (+8% in the quarter).

• The Group generated liquidity of EUR 32,000 million in the year-to-date, backed by retail banking, which has significantly reduced the need for medium- and long- term issuances.

• The Group’s net loan-to-deposit ratio was 108%, down from 113% in December 2012 and 117% in September.

u Strong capital generation maintained. Core capital ratio (BIS II) of 11.56%, +45 b.p. in the quarter and +123 b.p. since the end of 2012.

DISTRIBUTION OF TOTAL ASSETS

September 2013

Total managed funds at the end of September amounted to EUR 1,316,513 million, of which EUR 1,192,181 million (91%) were on-balance sheet and the rest mutual and pension funds, and managed portfolios.

A significant fact to be taken into account in the evolution of customer balances in the third quarter and over the last 12 months are the movements in exchange rates, following depreciations in the main currencies in which the Group operates.

In the quarter, the US dollar and the Chilean peso depreciated 3%, the Brazilian real and the Mexican peso 5% and the Argentine peso 10%, while sterling and the Polish zloty appreciated 3%. The impact on year-on-year changes in lending and customer funds was around 1 p.p. negative.

Compared to September 2012, the depreciations were 3% for the zloty, 4% for the dollar, 5% for sterling, 7% for the Mexican peso, 10% for the Chilean peso, 14% for the Brazilian real and 22% for the Argentine peso. The negative impact was 4 p.p. on year-on-year variations in loans and customer funds.

There was a positive perimeter effect of less than one percentage point in the comparison with September 2012, due to the merger in early 2013 of Bank Zachodni WBK and Kredyt Bank in Poland.

Customer lending

The Group’s gross lending amounted to EUR 712,367 million at the end of September, 2% lower than in June because of the impact of exchange rates. Excluding this impact and eliminating repos, balances were 0.8% lower, as follows: Continental Europe (-2.2%), with a widespread falls by country, 1.3% in the UK and 0.8% in the US. On the other hand, rises in Latin America (+2.3%), with all countries doing well.

Compared to September 2012, gross lending was 8% lower (-2% eliminating the exchange rate effect and repos), as set out below.

CUSTOMER LOANS (EUR Million)

					Variation
	30.09.13		30.09.12		Amount			(%)			31.12.12
Spanish Public sector		17,331		17,738		(407	)		(2.3	)		16,884
Other residents		165,571		188,392		(22,822	)		(12.1	)		183,130
Commercial bills		6,612		8,567		(1,955	)		(22.8	)		8,699
Secured loans		97,619		106,295		(8,677	)		(8.2	)		103,890
Other loans		61,340		73,530		(12,190	)		(16.6	)		70,540
Non-resident sector		529,465		570,722		(41,257	)		(7.2	)		544,520
Secured loans		324,631		350,418		(25,787	)		(7.4	)		339,519
Other loans		204,834		220,304		(15,470	)		(7.0	)		205,000
Gross customer loans		712,367		776,852		(64,486	)		(8.3	)		744,534
Loan-loss allowances		25,546		24,172		1,373			5.7			25,422
Net customer loans		686,821		752,680		(65,859	)		(8.7	)		719,112
Pro memoria: Doubtful loans		40,150		34,872		5,277			15.1			35,301
Public sector		172		103		69			66.9			121
Other residents		20,566		15,767		4,800			30.4			16,025
Non-resident sector		19,411		19,003		409			2.2			19,156

13 JANUARY - SEPTEMBER

CONSOLIDATED FINANCIAL REPORT FINANCIAL REPORT 2013

In Continental Europe, the low demand for lending derived from the economic situation of some countries, affected the balances in Spain, Portugal and the whole of Santander Consumer Finance. Poland’s rates were positive both from organic growth and as a result of the increased perimeter. The balance of Spain’s run-off real estate was much lower as we maintained the strategy of reducing this type of risk.

• Gross lending in Spain (excluding the run-off real estate unit, commented on below) was 7% lower year-on-year (-5% excluding repos) at EUR 170,265 million, as follows:

• Lending to individuals amounted to EUR 63,142 million, of which EUR 50,697 million are home mortgages (-5% in 12 months). The portfolio was concentrated in financing first homes, with a strong concentration in the lowest tranches of loan-to-value (83% with an LTV of less than 80%).

• Loans directly to SMEs and companies without real estate purpose amounted to EUR 83,622 million and accounted for the largest share of lending (50% of the total).

• Loans to the Spanish public sector stood at EUR 17,331 million, (2% less than September 2012).

• Lastly, repos were further reduced (-45%) in the last twelve months.

• In Portugal, lending dropped 7% year-on-year, due to all segments. Balances in construction and real estate, which represent only 2% of lending, declined 29%.

• Santander Consumer Finance’s balances fell 2%, with a varied performance by countries. Germany’s, which account for 52% of the area’s credit, remained unchanged, the Nordic countries and Poland increased 17% and 3%, respectively, in local currency, and periphery countries, more affected by the economic situation and deleveraging, declined.

New loans in the first nine of months were virtually unchanged from the same period of 2012, as follows: +4% for durables and used vehicles, and stability for new cars (+1%), where the evolution was better than the sector (-6% sales in our footprint).

• In Poland, lending rose 76% in local currency, benefiting from the consolidation of Kredyt Bank. Eliminating the impact of the merger, lending rose 3%.

• Net customer lending included in the unit of Spain’s run-off real estate activity amounted to EUR 6,246 million, EUR 261 million less than in the second quarter and EUR 4,352 million (-41%) less than in September 2012 (EUR 10,598 million).

In the United Kingdom, the balance of customer loans was 5% lower in sterling year-on-year. In local criteria, the balance of mortgages dropped 6% because of the strategy of improving the risk profile (which meant discontinuing some products) and the fall in loans to the real estate sector. Loans to SMEs were up 11% year-on-year, improving their market share by 70 b.p. in the last 12 months to 5.7%.

GROSS CUSTOMER LOANS

EUR Billion

(*) Excluding exchange rate impact : -4.3%

NET CUSTOMER LOANS

% o/ operating areas. September 2013

LOANS PORTFOLIO IN SPAIN

EUR Billion

JANUARY - SEPTEMBER 14

FINANCIAL REPORT 2013 CONSOLIDATED FINANCIAL REPORT

CUSTOMER FUNDS UNDER MANAGEMENT (EUR Million)

					Variation
	30.09.13		30.09.12		Amount			(%)			31.12.12
Resident public sector		12,893		7,277		5,616			77.2			8,487
Other residents		164,101		145,147		18,954			13.1			157,011
Demand deposits		74,878		68,863		6,015			8.7			71,526
Time deposits		83,798		62,440		21,358			34.2			75,414
Other		5,425		13,844		(8,419	)		(60.8	)		10,071
Non-resident sector		456,440		477,649		(21,209	)		(4.4	)		461,141
Demand deposits		242,801		231,458		11,342			4.9			228,698
Time deposits		155,426		182,822		(27,395	)		(15.0	)		179,503
Other		58,213		63,369		(5,156	)		(8.1	)		52,940
Customer deposits		633,433		630,072		3,361			0.5			626,639
Debt securities*		181,435		206,147		(24,712	)		(12.0	)		205,969
Subordinated debt		15,300		19,090		(3,791	)		(19.9	)		18,238
On-balance-sheet customer funds		830,168		855,310		(25,142	)		(2.9	)		850,846
Mutual funds		93,048		93,745		(697	)		(0.7	)		89,176
Pension funds		10,427		9,699		728			7.5			10,076
Managed portfolios		20,857		18,184		2,673			14.7			18,889
Other customer funds under management		124,332		121,628		2,704			2.2			118,141
Customer funds under management		954,500		976,938		(22,438	)		(2.3	)		968,987

* Including retail commercial paper (EUR million): 4,820 in September 2013, 12,535 in September 2012 and 11,536 in December 2012

Lending (excluding repos) in Latin America in constant currency increased 8%. Brazil’s rose 7%, Mexico’s 9%, Chile’s 10%, Argentina’s 33%, Uruguay’s 19%, Peru’s 29% and Puerto Rico.’s 2%.

Lastly, lending in the US declined 5% in dollars, as a result of the fall in the run-off portfolios and the strategy of recent months of mortgage origination for its subsequent sale.

Continental Europe accounted for 40% of the Group’s total net lending (24% Spain), the UK 35%, Latin America 19% (10% Brazil) and the US 6%.

Customer funds under management

Total managed funds amounted to EUR 954,500 million, 1.5% lower than at the end of June. As in lending, exchange rates had an impact on this evolution as, without them, balances were 1.0% lower. Continental Europe’s funds slightly fell 0.7%, the UK’s 2.6%, while Latin America’s rose 3.3% and the US’s 0.3%.

Funds were 2% higher than in September 2012 excluding the exchange rate and perimeter effects (-2% for accounting purposes). Deposits, including retail commercial paper in Spain and Brazil’s “letras financieras”, rose 4%, conditioned by the fall in the last 12 months in repos as, without this, growth was 5%,

Customer deposits and retail commercial paper in Continental Europe performed as follows:

• Spain’s grew 6% year-on-year (+12% excluding repos). In absolute terms, in the last 12 months the balance rose by EUR 19,945 million in demand and time deposits, and retail commercial paper, and dropped by EUR 8,171 million in repos. This increased market share and improved liquidity ratios. The net loan-to-deposit ratio ended September at 85%, down from 90% at the end of 2012 and 99% in September 2012.

• Portugal’s deposits dropped 3%, excluding repos, due to the greater focus on the cost of deposits, which is reflected in time deposits as demand deposits rose 3%.

• Santander Consumer Finance’s deposits dropped 7% due to Germany (91% of the area’s total) and the policy of reducing higher cost balances. Spain, Italy and the Nordic countries registered double-digit growth, though the figures are very modest.

• Poland’s deposits increased 62% in local currency, due to the entry of Kredyt Bank. On a like-for-like basis, deposits declined 3% because of active management of funds reflected in the reduction of expensive deposits of Kredyt Bank and the rise in mutual funds (+23%).

In the UK, customer deposits excluding repos (in sterling) dropped 2%, due to the strategy of replacing expensive and less stable deposits with those that offer a better opportunity of linkage. Demand deposits grew 3% in the last 12 months because of the rise in current accounts as a result of the success of the 1|2|3 range of products, which offset the reduction in time deposits balances.

MUTUAL FUNDS (EUR Million)

	30.09.13		30.09.12		Var (%)			31.12.12
Spain		26,919		23,730		13.4			23,093
Portugal		1,141		1,611		(29.2	)		1,544
Poland		2,600		2,188		18.8			2,443
United Kingdom		9,572		16,243		(41.1	)		13,919
Latin America		52,816		49,972		5.7			48,178
Total		93,048		93,745		(0.7	)		89,176

15 JANUARY - SEPTEMBER

CONSOLIDATED FINANCIAL REPORT FINANCIAL REPORT 2013

PENSION FUNDS (EUR Million)

	30.09.13		30.09.12		Var (%)		31.12.12
Spain		9,650		8,935		8.0		9,289
Portugal		776		764		1.6		787
Total		10,427		9,699		7.5		10,076

In Latin America, and, as in lending, in constant currency, all countries (except Peru) increased their deposits, (+9% overall excluding repos and including Brazil’s letras financieras). Brazil’s rose 8%, Mexico’s 9%, Chile’s 5%, Argentina’s 32%, Uruguay’s 18% and Puerto Rico’s 3%.

Lastly, US customer deposits also continued to improve their mix and cost, similar trend to that seen in other units. Demand deposits increased 7%, a rise absorbed by the drop in time deposits. Total deposits without repos dropped 2% since September 2012.

Mutual funds continued to reflect an improved trend. They rose 8% in the quarter, and 7% year-on-year excluding the exchange-rate impact, compared to declines of more than 10% at the beginning of the year and 4% at the end of June. Of note was the increase in Brazil (+31%), Poland (+23%) and Spain (+14%). On the other hand, Portugal’s declined 29% and the UK’s 38%, in line with the sector.

Pension plan funds rose 8% in Spain in the last 12 months and 2% in Portugal, the only countries where Santander markets this product.

Continental Europe accounted for 36% of managed customer funds (26% Spain), the UK 32%, Latin America 27% (Brazil 15%) and the US 5%.

The successful capturing of deposits for the last two years, enabled the Group to significantly reduce the need for wholesale funds through issuances. However, the Group, for strategic reasons, maintained a selective policy of issuing securities in the international fixed income markets and strived to adapt the frequency and volume of operations to the structural liquidity needs of each unit, as well as to the receptiveness of each market.

The Group issued in the first nine months EUR 16,606 million of medium- and long-term issues, of which EUR 14,172 million was senior debt and EUR 2,433 million covered bonds.

As regards securitizations, the Group’s subsidiaries placed in the first nine months a total of EUR 4,840 million, mainly in Santander UK and via the units of Santander Consumer Finance.

This issuing activity underscores the Group’s capacity to access the different segments of institutional investors via more than 10 issuance units, including the parent bank, Banco Santander, and the main subsidiaries of the countries where it operates. All this reaffirms the Group’s policy of liquidity self-sufficiency for its subsidiaries so that each adapts its issuance programme to the evolution of its balance sheet.

CUSTOMER FUNDS UNDER MANAGEMENT

EUR Billion

(*) Excluding exchange rate impact: +2,2%

CUSTOMER FUNDS UNDER MANAGEMENT

% o/ operating areas. September 2013

LOANS /DEPOSITS. TOTAL GROUP*

%

(*) Including retail commercial paper

JANUARY - SEPTEMBER 16

FINANCIAL REPORT 2013 CONSOLIDATED FINANCIAL REPORT

Maturities of medium- and long-term debt amounted to EUR 31,021 million in the first nine months, of which EUR 19,825 million was senior debt, EUR 10,997 million covered bonds and EUR 199 million subordinated debt.

The evolution of loans, deposits and retail commercial paper improved the net loan-to-deposit ratio to 108% (117% in September 2012 and 113% in December).

The ratio of deposits plus medium- and long-term funding to the Group’s loans was 120%, underscoring the comfortable funding structure of the Group’s lending.

Other items of the balance sheet

Total goodwill was EUR 23,729 million, EUR 1,449 million less than in September 2012, due to the impact of the evolution of exchange rates, particularly sterling and the Brazilian real, and the increase resulting from the incorporation of Kredyt Bank.

At the end of 2011 the European Central Bank (ECB) put into effect extraordinary monetary policy measures, including increasing collateral and 3-year auctions in order to inject liquidity into the market.

The Group participated in these auctions and continued to deposit a large part of these funds in the ECB, as a liquidity insurance. This, together with the strategy of replacing repos in the clearing houses with discounted assets in the ECB, is reflected in the evolution of balances with central banks.

In January 2013, and at the first opportunity possible, the Group returned EUR 24,000 million corresponding to the total amount borrowed by Banco Santander and Banesto at the December 2011 auction. The Group continued to return funds (more than EUR 33,000 million in the first nine months).

The balance of financial assets available for sale amounted to EUR 93,346 million, 4% less than in September 2012.

Trading derivatives amounted to EUR 79,669 million in assets and EUR 79,816 million in liabilities (-EUR 42,803 million and -EUR 43,643 lower, respectively, y-o-y), due to long-term interest rate hikes and cancelation of trading positions.

Shareholders’ equity and solvency ratios

Total shareholders’ equity, after retained profits, amounted to EUR 83,954 million, an increase of EUR 2,672 million in 12 months, (+3%).

Minority interests hardly changed in the last 12 months. The rise from the operation in Poland was offset by declines in Spain (from the integration of Banesto) and Brazil (impact of exchange rates).

Valuation adjustments dropped by EUR 3,572 million, with a notable negative impact of exchange rates (partly hedged) on the value of stakes in foreign subsidiaries. The figure also includes the negative impact of exchange rates on goodwill, but with a neutral impact on capital ratios, as the same occurs in their recording in assets.

Total equity amounted to EUR 81,639 million at the end of September.

The Group’s eligible equity on the basis of BIS II criteria amounted to EUR 71,836 million (EUR 31,652 million above the minimum requirement; +79%).

TOTAL EQUITY AND CAPITAL WITH THE NATURE OF FINANCIAL LIABILITIES (EUR Million)

	30.09.13			30.09.12			Variation Amount			(%)			31.12.12
Capital stock		5,546			4,949			597			12.1			5,161
Additional paid-in surplus		36,949			35,069			1,880			5.4			37,302
Reserves		38,476			39,971			(1,495	)		(3.7	)		37,513
Treasury stock		(105	)		(179	)		74			(41.3	)		(287	)
Shareholders’ equity (before profit and dividends)		80,866			79,811			1,055			1.3			79,689
Attributable profit		3,311			1,872			1,439			76.9			2,295
Interim dividend distributed		(223	)		(401	)		178			(44.4	)		(650	)
Interim dividend not distributed		—			—			—			—			(412	)
Shareholders’ equity (after retained profit)		83,954			81,281			2,672			3.3			80,921
Valuation adjustments		(12,133	)		(8,561	)		(3,572	)		41.7			(9,474	)
Minority interests		9,818			9,667			151			1.6			9,415
Total equity (after retained profit)		81,639			82,388			(749	)		(0.9	)		80,862
Preferred shares and securities in subordinated debt		4,247			4,792			(545	)		(11.4	)		4,740
Total equity and capital with the nature of financial liabilities		85,886			87,180			(1,294	)		(1.5	)		85,602

17 JANUARY - SEPTEMBER

CONSOLIDATED FINANCIAL REPORT FINANCIAL REPORT 2013

COMPUTABLE CAPITAL AND BIS II RATIO (EUR Million)

	30.09.13			30.09.12			Variation Amount			(%)			31.12.12
Core capital		58,085			58,370			(285	)		(0.5	)		57,558
Basic capital		62,502			63,122			(620	)		(1.0	)		62,234
Supplementary capital		10,545			12,710			(2,165	)		(17.0	)		11,981
Deductions		(1,211	)		(1,248	)		38			(3.0	)		(1,279	)
Computable capital		71,836			74,584			(2,748			(3.7	)		72,936
Risk-weighted assets		502,297			562,285			(59,988	)		(10.7	)		557,030
BIS II ratio		14.30			13.26			1.04	p.					13.09	p.
Tier I (before deductions)		12.44			11.23			1.21	p.					11.17	p.
Core capital		11.56			10.38			1.18	p.					10.33	p.
Shareholders’ equity surplus (BIS II ratio)		31,652			29,601			2,051			6.9			28,374

The Group continued to strongly generate capital in the quarter. The BIS II core capital ratio was 11.56%, after increasing 45 b.p. in the quarter and 123 b.p. since December 2012.

From a qualitative point of view, the core capital is very solid and adjusted to the business model, the balance sheet structure and to the Santander Group’s risk profile.

CORE CAPITAL

%

RISK-WEIGHTED ASSETS

EUR Million

u Rating Agencies

The Group’s access to wholesale funding markets, as well as the cost of issues, depends to some extent on the ratings accorded by rating agencies.

Rating agencies regularly review the Group’s ratings. Classification of long-term debt depends on a series of internal factors (solvency, business model, capacity to generate profits, etc) and external ones related to the general economic environment, the sector’s situation and the sovereign risk of the countries in which the Group operates.

Since October 2011 the rating of the Kingdom of Spain has been cut by all agencies and is now at: BBB- from Standard & Poor’s; BBB Fitch; Baa3 Moody’s; and A (low) DBRS, with all of them maintaining the negative outlook.

These downgradings led to a revision of Banco Santander’s ratings, as the methodology used by the agencies means that the rating of banks is linked to and limited by the sovereign debt rating of the country in which it is based. Downgradings of sovereign debt are accompanied by downgradings of banks. As a result, although the agencies recognise Santander’s financial strength and diversification, the Group’s rating is not more than one notch above that of the sovereign debt rating.

In this scenario, Santander is the only bank in Spain with a rating higher than the Kingdom of Spain’s by all four main agencies. Moreover, it is the only one in the world with a rating above that of sovereign debt assigned by S&P and the only one among the 20 largest banks worldwide above the sovereign with Moody’s.

RATING AGENCIES. GRUPO SANTANDER

	Long term		Short term		Outlook
Standard & Poor’s		BBB		A-2		Negative
Fitch Ratings		BBB+		F2		Negative
Moody’s		Baa2		P-2		Negative
DBRS		A		R1(low)		Negative

JANUARY - SEPTEMBER 18

FINANCIAL REPORT 2013 RISK MANAGEMENT

Risk management

u The Group’s NPL ratio was 5.43% at the end of September, 25 b.p. more than in June:

• Of note was the further decline in Brazil’s ratio (-37 b.p.) and the rise in Spain’s (+65 b.p.), due to drop in the denominator and rise in companies.

u Net NPL entries (excluding the perimeter and exchange-rate effects) were 8% lower year-on-year, after deducting the second quarter’s reclassification of sub-standard loans in Spain.

u Group coverage was 64% in September, slightly below the second quarter.

u Net assets of EUR 11,420 million in run-off real estate in Spain (separate unit). Of which:

• Loans: EUR 6,246 million; -41% year-on-year. Coverage: 51%.

• Foreclosed assets: EUR 3,727 million; -11% year-on-year. Coverage: 54%.

Credit risk management

Net NPL entries in the first nine months, excluding the perimeter and forex effects, amounted to EUR 13,796 million. Excluding the impact of the second quarter’s reclassification of sub-standard loans in Spain, entries were 8% lower than in the same period of 2012.

Bad and doubtful loans were largely unchanged at EUR 41,173 million at the end of September. This balance, together with fall in lending, put the Group’s NPL ratio at 5.43% (+25 b.p. in the quarter). Year-on-year comparison was affected by the reclassification of sub-standard loans in Spain in the second quarter.

Loan-loss provisions stood at EUR 26,300 million, of which EUR 3,927 million were generic provisions. These provisions, which rose 6% in the last 12 months, brought coverage at the end of September to 64% (slightly below the second quarter).

CREDIT RISK MANAGEMENT* (EUR Million)

	30.09.13		30.09.12		Var. (%)			31.12.12
Non-performing loans		41,173		35,802		15.0			36,061
NPL ratio (%)		5.43		4.34		1.09	p.		4.54	p.
Loan-loss allowances		26,300		24,889		5.7			26,111
Specific		22,373		20,741		7.9			21,793
Generic		3,927		4,149		(5.3	)		4,319
NPL coverage (%)		63.9		69.5		(5.6	p.)		72.4
Credit cost (%) **		1.77		2.20		(0.43	p.)		2.38

* Excluding country-risk

** 12 months net loan-loss provisions / average lending

Note:  NPL ratio: Non-performing loans / computable assets

GRUPO SANTANDER. NPL RATIO AND COVERAGE

%

(*) Incorporating reclassification impact of substandard loans in Spain

It should be borne in mind that the NPL ratio, particularly in the UK but also in Spain, is affected by the weight of mortgage balances that require lower provisions, as they have collateral not reflected here. The average LTV of residential mortgage balances in Spain and the UK is 58% and 51%, respectively.

Net loan loss provisions, deducting write-offs recovered, were EUR 8,583 million at the end of September, 1.77% of average credit risk in the last 12 months, compared to EUR 9,506 million (2.20%) in the same period of 2012.

The NPL ratios and coverage by countries are set out below:

• Spain’s NPL ratio was 6.40% at the end of September, 65 b.p. more than at the end of June, largely due to the impact of the reduction of the denominator, which accounts for almost half of the increase, and the companies segment. Coverage was 45% (+2 p.p. in the quarter).

By segments, the NPL ratio for home mortgages was 6.97%, remaining stable in the quarter. This ratio includes the reclassification of substandard loans in the second quarter.

The ratio of the rest of the portfolio (public administrations, individuals and companies) was higher at 6.20%, increasing in the quarter largely because of companies.

• There is a separate unit for Spain’s run-off real estate, which includes customer loans mainly for real estate development and has a specialized management model, equity stakes related to the property sector (Metrovacesa and the “bad” bank SAREB) and foreclosed assets.

19 JANUARY - SEPTEMBER

RISK MANAGEMENT FINANCIAL REPORT 2013

SPAIN. NPL RATIO AND COVERAGE

%

(*) Incorporating reclassification impact of substandard loans

The Group’s strategy in the last few years has been to reduce these loans sharply. At the end of September, they stood at EUR 11,420 million net and represented around 3% of Spain’s total loans and less than 1% of the Group’s. Their evolution was as follows:

• Net loans of EUR 6,246 million, EUR 261 million lower than in June 2013 and EUR 4,352 million below September 2012. The NPL ratio was 67.06%, with coverage of 73%. Total coverage of these loans, including performing loans, was 51% (39% in September 2012).

• Net foreclosed assets ended September at EUR 3,727 million, EUR 450 million less (-11%) in the last 12 months. These assets are covered by EUR 4,293 million of provisions (54% of gross assets).

• The stakes in Metrovacesa and SAREB amount to EUR 1,446 million, virtually unchanged in the quarter.

• Portugal’s NPL ratio was 7.86% at the end of September (+45 b. p. in the quarter), due mainly to individual risk. The evolution of the ratio is conditioned by the country’s economic environment. Coverage was 52%.

• Santander Consumer Finance’s NPL ratio was 3.96%, in line with the positive trend this year in consumer business. Good performance by units and stable ratios. Coverage was 109%.

• Poland was affected by the merger of the businesses of Kredyt Bank and the classification to doubtful of a large corporate client in June. After these extraordinary impacts, the ratio was lower at 7.75%. This stability reflects the good evolution of the main portfolios. Coverage was 64%.

• In the UK, the NPL ratio was 1.98%, 3 b.p. lower than June and 7 b.p. below the end of 2012. This positive evolution was due to the good performance of all segments particularly individual mortgages and individualized management companies, offseting the impact on the NPL ratio of the fall in lending, where there was further deleveraging in mortgages and in non-core segments of companies such as shipping and aviation (-25% and -36% respectively).

• Brazil’s NPL ratio was 6.12% at the end of September, 37 b.p. below June. This improvement confirmed the continuation of the trend begun in March and reflects the better performance of portfolios signaled by early NPL indicators (maturities of less than 90 days). Coverage remained at more than 92%, (+1 p.p. in the quarter).

• The NPL ratio of Latin America ex-Brazil was 4.39% in September (+55 b.p. in the quarter), due to the rise in Mexico from the impact of homebuilders (“vivienderas”). Excluding this impact, the NPL ratio in Mexico would have remained stable.

SPAIN’S RUN-OFF REAL ESTATE

EUR Million net balances

SPAIN’S RUN-OFF REAL ESTATE. COVERAGE RATIO

%

JANUARY - SEPTEMBER 20

FINANCIAL REPORT 2013 RISK MANAGEMENT

Chile was affected by one-off operations, and the performance of the consumer and SME portfolios, however, the risk premium remained stable. Argentina and Puerto Rico improved their NPL ratios in the quarter.

• The Grop’s NPL ratio in the US was 2.26%. This was due to the good performance of retail portfolios because of the rise in household disposable income and the favourable evolution of individualized management companies. In the latter, continued exits of NPLs against a backdrop of a greater risk appetite by the market when acquiring problematic loans, and also due to the increase in the valuations of guarantees from the positive evolution in real estate prices. Coverage was still around 100%.

NON-PERFORMING LOANS BY QUARTER (EUR Million)

	1Q’12			2Q’12			3Q’12			4Q’12			1Q’13			2Q’13			3Q’13
Balance at beginning of period		32,006			32,534			34,339			35,802			36,061			38,051			40,055
Net additions*		3,615			5,425			3,815			3,682			3,798			5,875			4,122
Increase in scope of consolidation		(602	)		(25	)		(1	)		(0	)		743			—			—
Exchange differences		41			(67	)		(36	)		(430	)		278			(1,260	)		(401	)
Write-offs		(2,527	)		(3,529	)		(2,316	)		(2,993	)		(2,829	)		(2,611	)		(2,603	)
Balance at period-end		32,534			34,339			35,802			36,061			38,051			40,055			41,173

(*) In 2Q’13 including EUR 2,015 million by reclassification of substandard operations in Spain to subjective nonperforming loans

Market risk

In the third quarter, the risk of trading activity, measured in VaR terms at 99%, averaged around EUR 15.5 million. It fluctuated between EUR 10.9 and EUR 20.7 million.

Of note was the brief upward trend at the end of July to reach the highest level for the quarter (EUR 20.7 million), due to the higher exposure in credit spreads. After that, the VaR took a downward trend to reach its quarterly minimum, at EUR 10.9 million, concentrated in Spain and the UK, due to lower interest rate risk in both cases.

TRADING PORTFOLIO*. VaR PERFORMANCE

EUR Million

(*) Trading activity

TRADING PORTFOLIO*. VaR BY REGION

Third trimester	2013				2012
EUR Million	Average		Latest		Average
Total		15.2		12.3		12.9
Europe		12.1		10.7		9.6
USA and Asia		0.8		0.6		0.8
Latin America		9.8		7.2		8.8
Global activities		1.4		1.9		1.5

(*) Trading activity

TRADING PORTFOLIO*. VaR BY MARKET FACTOR

Third trimestre
EUR Million	Min			Avg			Max			Latest
VaR total		10.9			15.2			20.7			12.3
Diversification efect		(11.4	)		(15.4	)		(22.7	)		(14.4	)
Interest rate VaR		9.3			11.8			13.9			11.5
Equity VaR		2.5			3.7			8.0			3.0
FX VaR		2.5			5.8			14.5			5.8
Credit spreads VaR		6.1			9.0			15.0			6.1
Commodities VaR		0.1			0.2			0.5			0.2

(*) Trading activity

21 JANUARY - SEPTEMBER

THE SANTANDER SHARE FINANCIAL REPORT 2013

The Santander share

Shareholder remuneration

Under the Santander Dividendo Elección programme (scrip dividend) for 2013, shareholders could opt to receive in cash or in shares the amount equivalent to the first dividend (EUR 0.150 per share). A total of 282,509,392 shares were issued to meet those who chose the latter option (86% of the capital stock).

At the same time, and within this programme, shareholders can opt to receive the second interim dividend in cash or in shares. Each shareholder has received a received a free allotment of new shares for each share they own.

Shareholders can sell the rights to the bank at a set price (EUR 0.153 gross per right), to the stock market between October 16 and 30 at the market price, or receive new shares in the proportion of one new share for every 41 rights (in the last two cases without withholding tax*).

In order to meet the request for new shares, a capital increase for a maximum of EUR 135,269,633.50 will be made, (270,539,267 shares). The number of new shares that will be issued and thus the amount of the capital increase will depend on the number of shareholders that opt to sell their free allotment rights to the bank at the fixed price.

Shareholders are due to receive on November 4 the amount in cash if they opted to sell the rights to the Bank and on November 7 new shares those who chose this option.

Performance of the Santander share

Stock markets ended with significant rises a quarter marked by macroeconomic news that pointed to the beginning of an economic recovery. The easing of tensions in the debt market, with lower risk premiums, the possible peaceful end to the conflict in Syria and the possibility of postponing the end to the Federal Reserve’s stimulus programme calmed investors.

The Santander share ended September at EUR 6.028, 23.0% higher in the quarter. Its evolution was better than that of the Ibex 35 (+18.3%) and the main international indices (DJ Stoxx 50: +6.6% and DJ Stoxx Banks: +13.9%).

COMPARATIVE PERFORMANCE OF SHARE PRICES

December 31, 2012 to September 30, 2013

Capitalisation

At the end of September, Santander was the largest bank in the Eurozone by market capitalisation (EUR 66,863 million) and the 13th in the world. The share’s weighting in the DJ Stoxx 50 was 2.2%, 8.0% in the DJ Stoxx Banks and 17.5% in the Ibex 35.

Trading

Santander is the most liquid stock in EuroStoxx, with 15,800 million shares traded in the first nine months for an effective value of EUR 87,666 million (liquidity ratio of 147%). A daily average of 82.7 million shares were traded (effective amount of EUR 459.0 million).

Shareholder base

The total number of shareholders at the end of September was 3,281,450, of which 3,071,451 are European (87.29% of the capital stock) and 193,556 from the Americas (12.27%).

Excluding the board which held 1.72% of the Bank’s capital, individual shareholders owned 47.68% of the capital and institutional ones 50.60%.

(*) The options, maturities and procedures indicated can present special features for shareholders holding Santander shares in the various foreign stock markets where the Bank is listed.

THE SANTANDER SHARE. September 2013

Shareholders and trading data
Shareholders (number)	3,281,450
Shares (number)	11,092,109,973
Average daily turnover (no. of shares)	82,721,660
Share liquidity (%)	147

(Number of shares traded during the year / number of shares)

Remuneration per share	euros		%(1)
Santander Dividendo Elección (Nov.12)		0.150		19.0
Santander Dividendo Elección (Feb.13)		0.152		27.7
Santander Dividendo Elección (May.13)		0.150		(31.7	)
Santander Dividendo Elección (Aug.13)		0.150		(1.3	)
Santander Dividendo Elección (Nov.13)		0.153		2.0
Price movements during the year
Beginning (31.12.12)				6.100
Highest				6.678
Lowest				4.791
Last (30.09.13)				6.028
Market capitalisation (millions) (30.09.13)				66,863
Stock market indicators
Price / Book value (X)				0.79
P/E ratio (X)				14.61
Yield (2) (%)				10.77

(1) Variation o/ equivalent previous year

(2) Last three remunerations paid + one announced / 9M’13 average share price

CAPITAL STOCK OWNERSHIP

September 2013	Shares		%
The Board of Directors		190,810,757		1.72
Institutional investors		5,612,912,549		50.60
Individuals		5,288,386,667		47.68
Total		11,092,109,973		100.00

JANUARY - SEPTEMBER 22

FINANCIAL REPORT 2013 INFORMATION BY SEGMENTS

Description of the segments

Grupo Santander is maintaining in 2013 the general criteria used in 2012, with the following exceptions:

1) In the Group’s financial statements:

• The change in International Accounting Standards 19 (IAS 19) requires that for periods beginning on or after January 1, 2013 actuarial gains and losses are immediately recognised against shareholders’ equity, without the possibility for deferred recognition through the P&L, as it was done until now.

• As a result of the disposal of Santander UK card business formerly owned by GE, its 2012 results have been eliminated from the various lines of the income statement and recorded, net, in profit from discontinued operations.

2) In businesses by restructuring:

• Spain was incorporated as a principal or geographic segment, and includes the former branch networks of Santander, Banesto and Banif (merged in 2013), Global Wholesale Banking, Asset Management and Insurance and the ALCO portfolio in Spain.

• In order to align its funding with the rest of units, the liquidity cost changed from applying rates to loans and deposits operations to applying the cost of Banco Santander senior debt to the difference between loans and deposits.

• Discontinued real estate activity in Spain is segregated into a unit within Continental Europe (Spain’s run-off real estate). It includes: loans from customers whose activity is mainly real estate development, which have a specialised management model; equity stakes in real estate companies and foreclosed assets.

3) Other adjustments

• The annual adjustment was made to the Global Customer Relationship Model and resulted in a net increase of 60 new clients.

• The wholesale businesses in Poland and Banesto, previously in retail banking, were incorporated to Global Wholesale Banking.

• Corporate Activities was redefined due to funding allocation and transfer of real estate assets and their costs (already mentioned), as well as other reallocations of costs among units.

For comparison purposes, the figures for 2012 have been restated including the changes in the affected areas.

The financial statements of each business segment have been drawn up by aggregating the Group’s basic operating units. The information relates to both the accounting data of the units in each segment as well as that provided by the management information systems. In all cases, the same general principles as those used in the Group are applied.

The operating business areas are structured into two levels:

Principal level (or geographic). Geographical areas segment the activity of the Group’s operating units. This coincides with the Group’s first level of management and reflects Santander positioning in the world’s three main currency areas (euro, sterling and dollar). The segments reported on are:

• Continental Europe. This covers all retail banking business, wholesale banking and asset management and insurance conducted in this region, as well as the unit of Spain’s run-off real estate. Detailed financial information is provided on Spain, Portugal, Poland and Santander Consumer Finance (which incorporates all the region’s business, including the three countries mentioned herewith).

• United Kingdom. This includes retail and wholesale banking and asset management and insurance conducted by the various units and branches of the Group in the country.

• Latin America. This embraces all the Group’s financial activities conducted via its subsidiary banks and subsidiaries (including Puerto Rico). It also includes the specialised units of Santander Private Banking, as an independent and globally managed unit, and New York’s business. The financial statements of Brazil, Mexico and Chile are also provided.

• United States. Includes the businesses of Santander Bank (former Sovereign Bank) and Santander Consumer USA (consolidated by the equity accounted method).

Secondary level (or business). This segments the activity of the operating units by type of business. The segments are: retail banking, wholesale banking, asset management and insurance and the unit of Spain’s run-off real estate.

• Retail Banking. This covers all customer banking businesses, including private banking (except those of Corporate Banking, managed through the Global Customer Relationship Model). Because of their relative importance, details are also provided by the main geographic areas (Continental Europe, United Kingdom, Latin America and the US), as well as the main countries and Santander Consumer Finance. The results of the hedging positions in each country are also included, conducted within the sphere of each one’s Assets and Liabilities Committee.

• Global Wholesale Banking (GBM). This business reflects the revenues from global corporate banking, investment banking and markets worldwide including all treasuries managed globally, both trading and distribution to customers (always after the appropriate distribution with Retail Banking customers), as well as equities business.

• Asset Management and Insurance. This includes the contribution of the various units to the Group in the design and management of mutual and pension funds and insurance. The Group uses, and remunerates through agreements, the retail networks that place these products. This means that the result recorded in this business is net (i.e. deducting the distribution cost from gross income).

As well as these operating units, which cover everything by geographic area and by businesses, the Group continues to maintain the area of Corporate Activities. This area incorporates the centralised activities relating to equity stakes in financial companies, financial management of the structural exchange rate position and of the parent bank’s structural interest rate risk, as well as management of liquidity and of shareholders’ equity through issues and securitisations.

As the Group’s holding entity, this area manages all capital and reserves and allocations of capital and liquidity. It also incorporates amortisation of goodwill but not the costs related to the Group’s central services (charged to the areas), except for corporate and institutional expenses related to the Group’s functioning.

The figures of the various units of the Group listed below have been prepared in accordance with this criteria, and therefore, may not match those publish by each institution individually.

23 JANUARY - SEPTEMBER

INFORMATION BY PRINCIPAL SEGMENTS FINANCIAL REPORT 2013

NET OPERATING INCOME (EUR Million)

				o/ 2Q’13									o/ 9M’12
	3Q’13			(%)			(%) w/o FX			9M’13			(%)			(%) w/o FX
Continental Europe		1,547			(0.2	)		0.1			4,627			(9.4	)		(9.3	)
o/w: Spain		805			(4.6	)		(4.6	)		2,501			(17.6	)		(17.6	)
Portugal		105			(5.9	)		(5.9	)		324			(30.1	)		(30.1	)
Poland		208			5.8			7.0			564			47.6			47.4
Santander Consumer Finance		456			5.2			5.2			1,315			(2.6	)		(2.6	)
United Kingdom		567			0.2			0.7			1,618			(4.4	)		0.4
Latin America		2,919			(10.8	)		(1.2	)		9,665			(15.5	)		(6.6	)
o/w: Brazil		1,859			(15.5	)		(4.0	)		6,487			(22.3	)		(11.8	)
Mexico		446			(9.5	)		(4.6	)		1,412			11.4			9.8
Chile		342			8.6			14.9			976			(3.1	)		(0.6	)
USA		181			(27.8	)		(26.4	)		742			(32.8	)		(30.9	)
Operating areas		5,214			(7.5	)		(1.7	)		16,653			(13.9	)		(8.2	)
Corporate Activities		(338	)		6.1			6.1			(1,164	)		(8.0	)		(8.0	)
Total Group		4,876			(8.4	)		(2.2	)		15,490			(14.3	)		(8.2	)
ATTRIBUTABLE PROFIT (EUR Million)
Continental Europe*		275			10.0			11.0			833			(30.1	)		(30.1	)
o/w: Spain		73			(14.9	)		(14.9	)		367			(50.8	)		(50.8	)
Portugal		32			28.5			28.5			77			(19.3	)		(19.3	)
Poland		100			10.0			11.2			261			11.0			10.9
Santander Consumer Finance		208			3.8			3.8			585			4.1			4.1
United Kingdom*		306			16.2			16.7			793			1.9			6.9
Latin America		733			(15.6	)		(7.1	)		2,589			(20.9	)		(14.6	)
o/w: Brazil		358			(14.7	)		(2.8	)		1,277			(23.6	)		(13.3	)
Mexico		123			(38.2	)		(33.5	)		564			(31.8	)		(32.8	)
Chile		116			19.3			25.8			316			(11.2	)		(8.9	)
USA		164			(13.9	)		(12.3	)		587			1.3			4.2
Operating areas*		1,477			(6.0	)		(0.8	)		4,801			(17.6	)		(13.2	)
Corporate Activities*		(422	)		(19.0	)		(19.0	)		(1,491	)		(1.0	)		(1.0	)
Total Group*		1,055			0.5			8.5			3,310			(23.3	)		(17.7	)
Net capital gains and provisions		—			—			—			—			(100.0	)		(100.0	)
Total Group		1,055			0.5			8.5			3,310			76.9			110.4
(*).- Excluding net capital gains and provisions
CUSTOMER LOANS (EUR Million)
Continental Europe		271,878			(2.4	)		(2.5	)		271,878			(6.5	)		(6.2	)
o/w: Spain		164,810			(3.7	)		(3.7	)		164,810			(8.7	)		(8.7	)
Portugal		24,712			(2.0	)		(2.0	)		24,712			(7.6	)		(7.6	)
Poland		16,298			2.0			(0.6	)		16,298			68.7			73.9
Santander Consumer Finance		55,898			(0.2	)		(0.2	)		55,898			(1.6	)		(1.6	)
United Kingdom		237,138			(0.5	)		(2.9	)		237,138			(12.2	)		(8.0	)
Latin America		135,832			(3.0	)		1.7			135,832			(4.6	)		8.0
o/w: Brazil		69,395			(2.7	)		2.4			69,395			(7.8	)		6.8
Mexico		21,007			(6.4	)		(2.0	)		21,007			(2.5	)		4.8
Chile		29,697			(1.3	)		1.9			29,697			(1.1	)		10.4
USA		38,184			(3.8	)		(0.7	)		38,184			(8.8	)		(4.7	)
Operating areas		683,033			(1.9	)		(1.7	)		683,033			(8.3	)		(4.3	)
Total Group		686,821			(1.9	)		(1.7	)		686,821			(8.7	)		(4.7	)
CUSTOMER DEPOSITS (EUR Million)
Continental Europe		262,970			(1.7	)		(1.8	)		262,970			9.6			9.8
o/w: Spain		188,824			(2.8	)		(2.8	)		188,824			11.5			11.5
Portugal		24,185			2.6			2.6			24,185			1.3			1.3
Poland		17,404			4.9			2.3			17,404			57.7			62.5
Santander Consumer Finance		30,726			(0.8	)		(0.8	)		30,726			(7.1	)		(7.1	)
United Kingdom		197,252			0.6			(1.8	)		197,252			(7.6	)		(3.2	)
Latin America		132,114			(4.2	)		0.6			132,114			(2.1	)		10.7
o/w: Brazil		65,801			(4.9	)		0.0			65,801			(5.4	)		9.6
Mexico		25,783			(8.5	)		(4.2	)		25,783			6.7			14.7
Chile		22,076			0.5			3.8			22,076			(4.8	)		6.3
USA		36,181			(3.8	)		(0.7	)		36,181			(5.9	)		(1.7	)
Operating areas		628,518			(1.6	)		(1.3	)		628,518			0.3			4.8
Total Group		633,433			(1.8	)		(1.4	)		633,433			0.5			5.1

JANUARY - SEPTEMBER 24

FINANCIAL REPORT 2013 INFORMATION BY PRINCIPAL SEGMENTS

CONTINENTAL EUROPE (EUR Million)

				Var. o/ 2Q’13									Var. o/ 9M’12
	3Q’13			(%)			(%) w/o FX			9M’13			(%)			(%) w/o FX
INCOME STATEMENT
Net interest income		2,014			(2.5	)		(2.2	)		6,086			(9.9	)		(9.9	)
Net fees		884			(3.8	)		(3.6	)		2,715			(2.0	)		(2.0	)
Gains (losses) on financial transactions		270			106.4			106.6			665			162.3			162.2
Other operating income (1)		8			(88.7	)		(88.6	)		97			(42.7	)		(42.7	)
Gross income		3,176			(0.4	)		(0.1	)		9,562			(3.9	)		(3.9	)
Operating expenses		(1,630	)		(0.5	)		(0.3	)		(4,935	)		1.9			1.9
General administrative expenses		(1,447	)		(0.3	)		(0.1	)		(4,384	)		0.8			0.8
Personnel		(869	)		(1.0	)		(0.8	)		(2,653	)		0.7			0.7
Other general administrative expenses		(578	)		0.8			1.0			(1,731	)		0.9			0.9
Depreciation and amortisation		(182	)		(1.8	)		(1.6	)		(551	)		11.7			11.7
Net operating income		1,547			(0.2	)		0.1			4,627			(9.4	)		(9.3	)
Net loan-loss provisions		(946	)		(4.8	)		(4.7	)		(2,840	)		(6.8	)		(6.8	)
Other income		(188	)		(3.4	)		(3.4	)		(574	)		34.4			34.4
Ordinary profit before taxes		413			13.9			15.0			1,213			(25.6	)		(25.5	)
Tax on profit		(93	)		32.3			33.6			(263	)		(33.6	)		(33.5	)
Ordinary profit from continuing operations		321			9.5			10.5			950			(23.0	)		(23.0	)
Net profit from discontinued operations		(0	)		100.1			100.7			(0	)		(83.0	)		(82.7	)
Ordinary consolidated profit		321			9.5			10.5			950			(22.9	)		(22.9	)
Minority interests		45			6.6			7.8			117			189.0			188.7
Ordinary attributable profit to the Group		275			10.0			11.0			833			(30.1	)		(30.1	)
Net capital gains and provisions		—			—			—			—			(100.0	)		(100.0	)
Attributable profit to the Group		275			10.0			11.0			833			—			—
BALANCE SHEET
Customer loans (2)		271,878			(2.4	)		(2.5	)		271,878			(6.5	)		(6.2	)
Trading portfolio (w/o loans)		61,710			(20.9	)		(20.9	)		61,710			(30.1	)		(30.1	)
Available-for-sale financial assets		41,520			(6.2	)		(6.5	)		41,520			(11.1	)		(10.9	)
Due from credit institutions (2)		59,339			(0.3	)		(0.3	)		59,339			21.7			21.8
Intangible assets and property and equipment		6,234			(0.3	)		(0.4	)		6,234			14.3			14.5
Other assets		27,421			25.3			25.2			27,421			19.5			19.7
Total assets/liabilities & shareholders’ equity		468,102			(4.2	)		(4.2	)		468,102			(6.9	)		(6.7	)
Customer deposits (2)		262,970			(1.7	)		(1.8	)		262,970			9.6			9.8
Marketable debt securities (2)		15,578			(7.9	)		(7.7	)		15,578			(26.2	)		(26.1	)
Subordinated debt (2)		365			4.6			2.1			365			185.1			191.8
Insurance liabilities		1,324			21.4			21.4			1,324			17.3			17.3
Due to credit institutions (2)		70,116			2.9			3.0			70,116			(1.5	)		(0.6	)
Other liabilities		88,857			(15.4	)		(15.4	)		88,857			(35.9	)		(35.9	)
Shareholders’ equity (3)		28,893			(2.0	)		(2.1	)		28,893			(6.4	)		(6.0	)
Other customer funds under management		47,961			7.4			7.2			47,961			11.7			11.9
Mutual and pension funds		41,086			7.3			7.1			41,086			10.4			10.6
Managed portfolios		6,876			8.0			7.9			6,876			20.3			20.4
Customer funds under management		326,875			(0.7	)		(0.9	)		326,875			7.5			7.6
RATIOS (%) AND OPERATING MEANS
ROE		3.78			0.39	p.					3.73			(1.36	p.)
Efficiency ratio (with amortisations)		51.3			(0.1	p.)					51.6			2.9	p.
NPL ratio		8.48			0.65	p.					8.48			2.41	p.
NPL coverage		61.1			(2.2	p.)					61.1			(7.3	p.)
Number of employees		59,642			(1.8	)					59,642			2.2
Number of branches		6,701			(1.1	)					6,701			2.8

(1).- Including dividends, income from equity-accounted method and other operating income/expenses

(2).- Including all on-balance sheet balances for this item

(3).- Not including profit of the year

NET OPERATING INCOME

Constant EUR Million

(*) In euros: -0.2%

ORDINARY ATTRIBUTABLE PROFIT

Constant EUR Million

(*) In euros: +10.0%

25 JANUARY - SEPTEMBER

INFORMATION BY PRINCIPAL SEGMENTS FINANCIAL REPORT 2013

Continental Europe

u Attributable profit of EUR 275 million in the third quarter, 10.0% more than in the second.

• Higher because of lower provisions (-4.8%).

• Gross income (-0.4%) and costs (-0.5%) remained fairly stable.

u Attributable profit in the first nine months of EUR 833 million compared to a loss of EUR 2,261 million in the same period of 2012 because of real estate provisioning.

• Comparisons affected by the impact of low interest rates and of low economic growth on net interest income.

• Flat expenses at constant perimeter (-0.8%), and lower ordinary provisions (-6.8%).

u Growth strategy: liquidity maintained, with greater focus on costs in recent months in a context of low demand for loans.

Continental Europe includes all activities carried out in this geographic area: retail banking, global wholesale banking, asset management and insurance, as well as Spain’s run-off real estate.

Strategy

The main actions in the quarter focused on developing the mergers of retail networks in Spain and banks in Poland. In a still weak environment and with low interest rates, the general strategic lines of the last two years were maintained:

• Defending spreads on loans and on deposits.

• Once a very comfortable liquidity position was achieved, the emphasis in the quarter was on reducing the cost of new deposits in all units.

• Control of costs.

• Active risk management.

Activity

Customer lending was 2% lower in the quarter. Declines in Spain, the real estate unit, and Portugal.

The 4% fall year-on-year also reflects the deleveraging in the real estate sector and the low demand for loans in Spain and Portugal. Growth in Poland from the consolidation of Kredyt Bank and more stable balances in Santander Consumer Finance.

Customer deposits were 3% lower in the quarter. Deposits reflected the policy of lower cost wholesale balances and the reduction of expensive balances in KB. Mutual funds grew 9%, due to Spain.

Deposits without repos rose 10% year-on-year: Spain (+12%), Poland (+62% in local currency: -3% on a like-for-like basis) and lower balances in Portugal and Santander Consumer Finance.

Results

Gross income remained virtually unchanged in the third quarter. Net interest income fell 2.5% and greater contribution of trading gains from wholesale banking, in both cases mainly due to Spain.

Operating expenses were 0.5% lower and loan-loss provisions 4.8%, mainly in Spain.

Year-on-year comparisons with the first nine months of 2012 were affected by the perimeter effect. Positive impact from the consolidation of Kredyt Bank in Poland and a negative one from the reinsurance operation in Spain and Portugal. This represented a net positive impact of 2 p.p. on revenues and a negative one of 3 p.p. on attributable profit.

Gross income was 3.9% lower than in the first nine months of 2012, due to the 9.9% drop in net interest income, which still reflects the weakness of economies, low interest rates, a higher average cost of funds and the repricing of mortgages. Trading gains improved their contribution (wholesale business).

Operating expenses increased 1.9%, basically due to the impact of the perimeter of Poland, as on a like-for-like basis they were flat (-0.8%).

Loan-loss provisions were 6.8% lower year-on-year. Higher minority interests in Poland due to the integration of KB.

Attributable profit was EUR 833 million in the first nine months, 30.1% below the same period of 2012 before provisions for real estate loans. Including them, the area recorded a loss of EUR 2,261 million in the first nine months of 2012.

ACTIVITY

% var. Sep’13 / Sep’12 (constant EUR)

(*) Including retail commercial paper

GROSS INCOME

Constant EUR Million

(*) In euros: -0.4%

JANUARY - SEPTEMBER 26

FINANCIAL REPORT 2013 INFORMATION BY PRINCIPAL SEGMENTS

SPAIN (EUR Million)

	3Q’13			(%) o/ 2Q’13			9M’13			(%) o/ 9M’12
INCOME STATEMENT
Net interest income		1,069			(4.7	)		3,268			(17.9	)
Net fees		460			(8.0	)		1,461			(5.6	)
Gains (losses) on financial transactions		218			127.5			520			164.8
Other operating income (1)		8			(89.0	)		115			(42.0	)
Gross income		1,755			(2.2	)		5,364			(9.4	)
Operating expenses		(950	)		(0.0	)		(2,863	)		(0.8	)
General administrative expenses		(859	)		0.3			(2,584	)		(0.9	)
Personnel		(526	)		(2.1	)		(1,618	)		(3.3	)
Other general administrative expenses		(333	)		4.5			(966	)		3.4
Depreciation and amortisation		(91	)		(3.3	)		(278	)		0.4
Net operating income		805			(4.6	)		2,501			(17.6	)
Net loan-loss provisions		(630	)		(8.6	)		(1,835	)		(1.3	)
Other income		(59	)		101.4			(124	)		31.5
Profit before taxes		116			(6.9	)		542			(49.9	)
Tax on profit		(42	)		11.6			(173	)		(48.1	)
Profit from continuing operations		74			(15.0	)		369			(50.8	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		74			(15.0	)		369			(50.8	)
Minority interests		0			(26.0	)		2			(38.9	)
Attributable profit to the Group		73			(14.9	)		367			(50.8	)
BALANCE SHEET
Customer loans (2)		164,810			(3.7	)		164,810			(8.7	)
Trading portfolio (w/o loans)		56,508			(20.0	)		56,508			(28.8	)
Available-for-sale financial assets		30,312			(8.1	)		30,312			(16.8	)
Due from credit institutions (2)		36,956			(0.6	)		36,956			58.8
Intangible assets and property and equipment		4,170			0.5			4,170			4.8
Other assets		10,415			60.3			10,415			43.8
Total assets/liabilities & shareholders’ equity		303,170			(6.0	)		303,170			(8.4	)
Customer deposits (2)		188,824			(2.8	)		188,824			11.5
Marketable debt securities (2)		4,821			(35.5	)		4,821			(61.5	)
Subordinated debt (2)		22			198.4			22			161.5
Insurance liabilities		554			16.4			554			(23.5	)
Due to credit institutions (2)		26,950			16.5			26,950			41.7
Other liabilities		70,699			(17.1	)		70,699			(38.9	)
Shareholders’ equity (3)		11,301			(4.6	)		11,301			(15.9	)
Other customer funds under management		41,217			8.8			41,217			13.7
Mutual and pension funds		36,409			8.5			36,409			12.1
Managed portfolios		4,807			10.6			4,807			28.0
Customer funds under management		234,883			(2.0	)		234,883			7.7
RATIOS (%) AND OPERATING MEANS
ROE		2.55			(0.42	p.)		4.09			(3.10	p.)
Efficiency ratio (with amortisations)		54.1			1.1	p.		53.4			4.6	p.
NPL ratio		6.40			0.65	p.		6.40			2.76	p.
NPL coverage		45.0			1.9	p.		45.0			(0.7	p.)
Number of employees		28,297			(2.5	)		28,297			(5.1	)
Number of branches		4,573			(0.8	)		4,573			(2.3	)

(1).- Including dividends, income from equity-accounted method and other operating income/expenses

(2).- Including all on-balance sheet balances for this item

(3).- Not including profit of the year

NET OPERATING INCOME

EUR Million

ATTRIBUTABLE PROFIT

EUR Million

27 JANUARY - SEPTEMBER

INFORMATION BY PRINCIPAL SEGMENTS FINANCIAL REPORT 2013

Spain

u Attributable profit of EUR 73 million in the third quarter. With regard to the second quarter:

• Lower gross income mainly due to a drop in lending volumes and repricing of mortgages.

• Costs were virtually unchanged, reflecting the first impacts of synergies.

• Effort in loan-loss provisions was maintained.

u Attributable profit of EUR 367 million in the first nine months, 50.8% lower due to still high provisions and lower gross income that continue to be affected by the repricing of mortgages and the higher average cost of funds.

u Activity:

• Continued low lending demand environment, reflecting in 6% drop year-on-year.

• Retail banking deposits were 12% higher than in September 2012.

Economic and financial environment

Spain’s units carried out their business in the third quarter in a better economic and financial environment though still complicated.

The economy rose slightly in the third quarter (around 0.1% quarter-on-quarter, according to the first indicators), putting an end to eight months of falls. The recovery, however, is still weak and continues to rely on exports, though domestic demand fell by a more moderate rate. The pace of fall in employment, seasonally adjusted, was lower and the jobless rate stabilized. In this environment and one where the impact of higher indirect taxes has passed, the annual rate of inflation was 0.3% in September.

Financial conditions have improved notably. The risk premium has come down and better access to wholesale funding markets has consolidated, thanks to better macroeconomic fundamentals (improved competitiveness, current account balance, etc.) and progress in integration in the euro zone (more relaxed stance of the ECB, advancing in the creation of a single supervisor, etc). The situation is still far from back to normal, but the climate is better than it was a few months ago.

The banking system is healthier. The restructuring of the weaker banks (under the European financial support programme) advances significantly and the solvency and liquidity ratios of the whole system are better.

The impact of this progress will only be felt when the gains are consolidated and stronger. The banking system remains affected by the deleveraging of companies and households and, as a result, low demand for loans, by official interest rates at lows (0.5%, the ECB repo rate) which still weighs on net interest income, and by a NPL ratio (12.1% in August) which, given that it takes time to respond to the economic cycle, has still not reached its peak.

Private sector lending declined 13% year-on-year in the first eight months (6 percentage points due to the transfer of toxic assets to SAREB), with particular intensity in the case of companies, immersed in cleaning up their balances. Deposits, including retail commercial paper, grew 5%, with rises both in companies and households.

Strategy and activity

Grupo Santander has a solid presence (4,573 branches, 5,761 ATMs and more than 13 million customers), which is reinforced by global businesses in key products and segments (wholesale banking, asset management, insurance and cards).

In order to consolidate the Group’s leadership in Spain, in order to increase its profitability and efficiency, and take advantage of the merger trends in the sector in the coming years, Santander is merging its two main retail networks (Santander and Banesto) and its specialized private bank (Banif).

The integration is proceeding according to schedule, and ahead of it in some areas. The branch network began to be restructured in July and branches and the head count optimized, ahead of schedule in order to bring forward cost synergies.

In managed funds the focus was on sharply reducing the cost of deposits and on a customer retention policy via deposits, mutual funds and savings-investment insurance.

The efforts to manage funds more profitably were reflected in an improvement of 160 b.p. in the cost of new time deposits in the first nine months, which is beginning to lead to a reduction in the cost of the stock of deposits (-31 b.p. since the end of 2012). This reduction will accelerate in the coming quarters .

Total managed funds (customer deposits, retail commercial paper, mutual funds and pension funds) stood at EUR 230,066 million at the end of September, 7% more year-on-year and 2% below June 2013. The fall over June 2013 was due to wholesale balances.

The comparison over September 2012 is affected by the decline in repos (EUR 8,171 million), due to the lower activity in clearing houses.

Excluding repos, deposits plus retail commercial paper increased by EUR 19,945 million (+12%) since September 2012.

ACTIVITY

% var. Sep’13 / Sep’12

(*) Including retail commercial paper

JANUARY - SEPTEMBER 28

FINANCIAL REPORT 2013 INFORMATION BY PRINCIPAL SEGMENTS

In the last twelve months, the Group increased its market share by 100 b.p. (+220 b.p. since the beginning of 2012).

Mutual and pension funds increased 9% in the quarter to EUR 36,422 million, confirming the trend seen since the beginning of 2013. Year-on-year growth was 12%.

In lending, the Group launched the “Plan 10.000” to gain market share. The volume of lending maintains an important weakness, reflected in still significant declines.

Gross customer loans excluding repos, which followed the same trend as that for repos in funds, were 3% lower quarter-on-quarter and 5% year-on-year. In the last twelve months, the Group increased its market share by 40 b.p.

The “Plan 10.000” is scheduled to be relaunched in the fourth quarter, with new measures that enable new customers to be captured as well as gain market share in clients with high ratings and take advantage of the lever provided by the financing to third parties from ICO and the EIB.

The evolution of deposits and loans improved the liquidity position. In the last 12 months EUR 28,000 million of liquidity was generated, improving the net loan-to-deposit ratio to 85% (90% in December 2012 and 99% in September).

The NPL ratio rose by 65 b.p. to 6.40% in September, largely due to the deleveraging on the denominator, accounting for about 30 b.p. and the companies segment Coverage was 45%, an increase of 2 p.p.over the second quarter.

Results

Gross income was 2.2% lower in the third quarter at EUR 1,755 million and mainly due to net interest income (EUR 1,069 million), which was 4.7% below the second quarter. The latter reduction was caused by lower lending, the repricing of mortgages, which is still not over, and some compensation between net interest income and trading gains in wholesale business. These impacts were only partly

offset by a still limited impact of the improvement in the cost of deposits, which will accelerate in coming quarters.

Fee income was also down (-8.0%), because of reduced seasonal activity in the third quarter and the impact of homogenising Banesto’s customers to the “Queremos ser tu Banco” strategy.

On the other hand, larger contribution from trading gains from wholesale banking, as in the second quarter they were partly eroded by the higher payment of dividends as happens regularly in that period.

Costs were flat at EUR 950 million. Net operating income was down 4.6% to EUR 805 million.

In the quarter, the Bank continued to make a strong effort in provisions. They amounted to EUR 630 million.

Profit was EUR 73 million compared to EUR 86 million in the second quarter.

Results for the first nine months were very conditioned by the fall in gross income. The continued effort to cut the cost of deposits can still be seen in new ones, but this has not yet fed through to the whole stock, whose cost remains above that of the same period of 2012.

The impact of the pricing of mortgages is still evident.

Operating costs dropped 0.8%. These do not yet reflect significantly the synergies envisaged in the integration underway, which will accelerate in the coming quarters.

Provisions remained high at this moment of the cycle (in line with those for the first nine months of 2012).

Profit for the first nine months was EUR 367 million, 50.8% lower year-on-year.

NET INTEREST INCOME

EUR Million

GROSS INCOME

EUR Million

29 JANUARY - SEPTEMBER

INFORMATION BY PRINCIPAL SEGMENTS FINANCIAL REPORT 2013

PORTUGAL (EUR Million)

	3Q’13			(%) o/ 2Q’13			9M’13			(%) o/ 9M’12
INCOME STATEMENT
Net interest income		132			(1.8	)		383			(14.4	)
Net fees		79			(9.1	)		251			(2.9	)
Gains (losses) on financial transactions		10			55.3			40			(63.3	)
Other operating income (1)		7			26.9			19			(31.1	)
Gross income		228			(2.2	)		693			(17.7	)
Operating expenses		(123	)		1.1			(369	)		(2.6	)
General administrative expenses		(103	)		1.5			(310	)		(2.7	)
Personnel		(74	)		0.4			(223	)		(2.8	)
Other general administrative expenses		(29	)		4.3			(87	)		(2.6	)
Depreciation and amortisation		(20	)		(0.8	)		(59	)		(1.8	)
Net operating income		105			(5.9	)		324			(30.1	)
Net loan-loss provisions		(56	)		(10.8	)		(182	)		(44.7	)
Other income		(6	)		(65.3	)		(36	)		138.3
Profit before taxes		44			35.7			106			(11.5	)
Tax on profit		(12	)		62.2			(29	)		19.5
Profit from continuing operations		32			27.7			77			(19.4	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		32			27.7			77			(19.4	)
Minority interests		(0	)		—			0			(70.4	)
Attributable profit to the Group		32			28.5			77			(19.3	)
BALANCE SHEET
Customer loans (2)		24,712			(2.0	)		24,712			(7.6	)
Trading portfolio (w/o loans)		1,788			(0.3	)		1,788			(5.6	)
Available-for-sale financial assets		4,662			(5.5	)		4,662			(18.7	)
Due from credit institutions (2)		2,761			(22.6	)		2,761			(25.3	)
Intangible assets and property and equipment		896			(1.1	)		896			124.5
Other assets		6,610			13.4			6,610			21.4
Total assets/liabilities & shareholders’ equity		41,429			(1.9	)		41,429			(5.7	)
Customer deposits (2)		24,185			2.6			24,185			1.3
Marketable debt securities (2)		2,375			(0.9	)		2,375			(36.8	)
Subordinated debt (2)		0			(49.9	)		0			(49.6	)
Insurance liabilities		88			0.2			88			13.7
Due to credit institutions (2)		11,880			(10.9	)		11,880			(12.0	)
Other liabilities		358			20.9			358			40.9
Shareholders’ equity (3)		2,544			(0.1	)		2,544			3.4
Other customer funds under management		2,043			(5.3	)		2,043			(16.3	)
Mutual and pension funds		1,917			(6.5	)		1,917			(19.3	)
Managed portfolios		126			15.9			126			94.4
Customer funds under management		28,603			1.7			28,603			(4.9	)
RATIOS (%) AND OPERATING MEANS
ROE		4.97			1.11	p.		4.06			(0.96	p.)
Efficiency ratio (with amortisations)		53.9			1.8	p.		53.3			8.3	p.
NPL ratio		7.86			0.45	p.		7.86			1.70	p.
NPL coverage		51.9			(0.5	p.)		51.9			0.2	p.
Number of employees		5,627			(0.2	)		5,627			(1.6	)
Number of branches		647			(0.6	)		647			(3.4	)

(1).- Including dividends, income from equity-accounted method and other operating income/expenses

(2).- Including all on-balance sheet balances for this item

(3).- Not including profit of the year

NET OPERATING INCOME

EUR Million

ATTRIBUTABLE PROFIT

EUR Million

JANUARY - SEPTEMBER 30

FINANCIAL REPORT 2013 INFORMATION BY PRINCIPAL SEGMENTS

Portugal

u Attributable profit of EUR 32 million in the third quarter, 28.5% more than in the second:

• Growth came from lower provisions and stable gross income and costs.

u Profit for the first nine months was EUR 77 million, 19.3% less than in the same period of 2012 due to:

• Fall of 17.7% in gross income, due to the repurchase of securities in the first half of 2012, reduced lending and a higher average cost of funding.

• Costs fell 2.6% and provisions 44.7%, partly due to the effort made in the first quarter of 2012.

u Evolution of deposits and loans improved the net loan-to-deposit ratio to 102%.

Santander Totta is the third largest private sector bank by assets. It focuses on commercial banking and has 647 branches, 2.0 million customers and a market share of 10%.

Economic environment

The pace of GDP shrinkage eased to 2.1% year-on-year in the second quarter, thanks to growth of 1.1% quarter-on-quarter (the first rise since 2010). This evolution was due to the better domestic demand, in line with the improvement in the jobless rate, and greater exports, particularly to non-European markets. Tourism also performed well.

This performance, combined with the recovery in confidence to the highest level in the last two years and the upturn in the euro zone, is generating better expectations though with some uncertainties.

The market is waiting for the 2014 budget in order to revise its public debt outlook. The target, within the sphere of the eighth and ninth assessments of the government’s economic and financial adjustment plan, is to reduce the budget deficit of 2014 to 4%.

Strategy

Santander Totta’s strategy is very focused on increasing linkage and improving the transaction levels of customers, defending spreads on deposits and loans and increasing the market share of loans to companies.

Management of non-performing loans remains a priority, particularly applying preventative measures.

Activity

At the end of September net loans were down 2% over the second quarter and deposits excluding repos also 2% due to the greater focus on their cost.

In year-on-year terms, lending declined 7% (excluding repos) in line with the market trends, and deposits 3%.

In a difficult macroeconomic environment, Santander Totta continued to generate positive results, maintain solid capital ratios, a controlled NPL ratio (7.86%), within expected levels, and a low balance of real estate loans with good coverage. The bank compared well in all these aspects with the average of its domestic peers.

Results

Gross income declined 2.2% in the third quarter over the second, because of the 1.8% drop in net interest income, the result of the lower volume of lending, as spreads were maintained, and the impact of the regulatory change related to interest payments which affects both net interest income as well as fee income.

Flat costs and lower provisions resulted in a 28.5% rise in the third quarter’s profit over the second quarter.

The year-on-year comparisons for the first nine months were better throughout the income statement. Of note was:

• Gross income was 17.7% lower, as in 2012 there was a capital gain from the repurchase of securities, which boosted trading gains to EUR 109 million, compared to EUR 40 million in 2013. Other factors were reduced revenues from insurance business (the result of the agreement signed in July 2012 to reinsure the portfolio of individual life risk) and lower net interest income, due to reduced lending, and the still higher average cost of funding.

• Costs continued on a downward path and decreased 2.6%.

• Loan loss provisions declined 44.7% because needs were lower in the last few quarters and those made in 2012 were high.

• Attributable profit for the first nine months was EUR 77 million, 19.3% lower year-on-year.

ACTIVITY

% var. Sep’13 / Sep’12

GROSS INCOME

EUR Million

31 JANUARY - SEPTEMBER

INFORMATION BY PRINCIPAL SEGMENTS FINANCIAL REPORT 2013

POLAND (EUR Million)

				Var. o/ 2Q’13									Var. o/ 9M’12
	3Q’13			(%)			(%) w/o FX			9M’13			(%)			(%) w/o FX
INCOME STATEMENT
Net interest income		204			6.6			7.9			575			43.4			43.2
Net fees		105			(1.0	)		0.2			314			29.6			29.4
Gains (losses) on financial transactions		39			34.8			36.1			104			170.6			170.2
Other operating income (1)		(2	)		—			—			11			(27.5	)		(27.6	)
Gross income		346			1.7			2.9			1,004			44.0			43.8
Operating expenses		(138	)		(3.9	)		(2.7	)		(440	)		39.6			39.4
General administrative expenses		(125	)		(3.6	)		(2.3	)		(399	)		37.8			37.6
Personnel		(75	)		(3.2	)		(1.9	)		(238	)		38.5			38.3
Other general administrative expenses		(50	)		(4.2	)		(2.9	)		(162	)		36.9			36.7
Depreciation and amortisation		(13	)		(7.4	)		(6.2	)		(41	)		59.3			59.1
Net operating income		208			5.8			7.0			564			47.6			47.4
Net loan-loss provisions		(35	)		(31.6	)		(30.4	)		(128	)		60.8			60.6
Other income		(2	)		—			—			(1	)		—			—
Profit before taxes		171			13.3			14.5			435			42.7			42.5
Tax on profit		(35	)		26.4			27.7			(84	)		37.1			36.9
Profit from continuing operations		136			10.4			11.6			350			44.1			43.9
Net profit from discontinued operations		—			—			—			—			—			—
Consolidated profit		136			10.4			11.6			350			44.1			43.9
Minority interests		36			11.4			12.6			89			—			—
Attributable profit to the Group		100			10.0			11.2			261			11.0			10.9
BALANCE SHEET
Customer loans (2)		16,298			2.0			(0.6	)		16,298			68.7			73.9
Trading portfolio (w/o loans)		561			(14.7	)		(16.9	)		561			40.4			44.7
Available-for-sale financial assets		4,861			5.8			3.1			4,861			62.1			67.1
Due from credit institutions (2)		821			94.8			89.9			821			94.0			99.9
Intangible assets and property and equipment		220			(1.5	)		(4.0	)		220			57.3			62.1
Other assets		2,046			63.4			59.3			2,046			93.2			99.1
Total assets/liabilities & shareholders’ equity		24,805			7.2			4.5			24,805			69.0			74.1
Customer deposits (2)		17,404			4.9			2.3			17,404			57.7			62.5
Marketable debt securities (2)		—			—			—			—			—			—
Subordinated debt (2)		333			0.7			(1.9	)		333			232.6			242.8
Insurance liabilities		—			—			—			—			—			—
Due to credit institutions (2)		2,577			50.6			46.8			2,577			261.2			272.2
Other liabilities		2,654			(2.0	)		(4.5	)		2,654			153.4			161.1
Shareholders’ equity (3)		1,837			2.6			0.0			1,837			3.1			6.2
Other customer funds under management		2,708			2.9			0.3			2,708			15.5			19.0
Mutual and pension funds		2,600			2.8			0.2			2,600			18.8			22.5
Managed portfolios		109			5.9			3.3			109			(31.0	)		(28.9	)
Customer funds under management		20,445			4.6			1.9			20,445			51.7			56.3
RATIOS (%) AND OPERATING MEANS
ROE		21.97			2.49	p.					18.39			0.21	p.
Efficiency ratio (with amortisations)		40.0			(2.3	p.)					43.8			(1.4	p.)
NPL ratio		7.75			(0.33	p.)					7.75			3.06	p.
NPL coverage		64.1			4.8	p.					64.1			0.1	p.
Number of employees		12,499			(0.0	)					12,499			40.5
Number of branches		836			(4.6	)					836			60.2

(1).- Including dividends, income from equity-accounted method and other operating income/expenses

(2).- Including all on-balance sheet balances for this item

(3).- Not including profit of the year

NET OPERATING INCOME

Constant EUR Million

(*) In euros: +5.8%

CONSOLIDATED PROFIT

Constant EUR Million

(*) In euros: +10.4%

JANUARY - SEPTEMBER 32

FINANCIAL REPORT 2013 INFORMATION BY PRINCIPAL SEGMENTS

Poland (all changes in local currency)

u Attributable profit in the third quarter of EUR 100 million, 11.2% more than the second quarter due to higher revenues and lower costs and provisions.

u Attributable profit in the first nine months of EUR 261 million and EUR 350 million before minority interests (+43.9%) because of the consolidation of Kredyt Bank.

u Solid funding structure: net loan-to-deposit ratio of 94%.

u Integration ahead of schedule. Focus on boosting productivity in Kredyt Bank’s branches.

u BZ WBK received the “2012 company of the year” award as the best Polish company.

In two years, Santander has become the third largest bank in Poland in terms of loans and deposits (market shares of 7.5% and 8.2%, respectively). It has 836 branches and 110 agencies.

Economic environment

The pace of growth quickened to 0.8% year-on-year in the second quarter. The first results for the third quarter confirm the upturn, fuelled by exports and consumption.

The annual rate of inflation fell sharply in the last few months to around 1% from 4% in June 2012. In this environment, the central bank is expected to hold its interest rates until mid-2014. The zloty appreciated in the third quarter largely due to global factors (between PLN 4.20-4.30/EUR 1).

Strategy

The merger of BZ WBK and Kredyt Bank is one of the main focuses of management. The process is proceeding faster than envisaged, with very effective cost management made possible by the efficiency measures and the integration plan implementation. All branches already display the BZ WBK brand and use its IT systems and the productivity of the former Kredyt Bank branches continues to improve.

BZ WBK continued to offer innovative products and solutions. These include the “Contactless card”, unique in the Polish market for several years; “BZ WBK TFI”, the leader in acquiring retail funds and “BZ WBK Faktor” (factoring solutions), which doubled its market share in a year to 11%. BZ WBK was also the first bank to issue the “PayPass city card” (personalized and rechargeable which is used for various urban activities) and the “PayPass school card”. Thanks to them, BZ WBK is the market leader in cards, electronic banking (more than two million users) and mobile banking.

BZ WBK reached agreement with AVIVA to update its strategic co-operation in bancassurance. The operation is subject to approval by the corresponding authorities.

Activity

BZ WBK had EUR 16,298 million of net loans at the end of September and EUR 17,404 million of customer deposits, thereby maintaining a very solid funding structure underscored by its net loan-to-deposit ratio of 94%. Compared to June 2013, and in local currency, lending was 1% lower and deposits 2% higher, impacted by the economic environment whose improvement is not yet reflected in the growth in the balance sheet.

After the incorporation of Kredyt Bank, lending rose 76% year-on-year and deposits 62%. Excluding this perimeter impact, loans increased 3% and deposits fell 3%. The latter affected by the strategy to reduce the most expensive ones (KB legacy deposits). Of note was the 23% growth in mutual funds.

Results

Attributable profit was EUR 100 million in the third quarter, 11.2% more than the second quarter (excluding the exchange-rate impact).

Net interest income rose 7.9%, spurred by active management of funding costs, the focus on the mix of products and credit spreads. Fee income remained stable. Gross income increased 2.9%, affected by the receipt of annual dividends in the second quarter.

Operating expenses dropped 2.7% in the quarter, with synergies that will accelerate in the coming quarters. Streamlining of branches, staff optimization and accumulated synergies, are ahead of schedule.

Loan-loss provisiones declined 30.4% due to lower provisions in corporate lending.

The first nine months of 2013 cannot be compared with the same period of 2012 because of the perimeter impact of the integration of Kredyt Bank. Attributable profit was EUR 261 million and EUR 350 million before minority interests. Growth was more than 40% throughout the income statement.

On a like-for-like basis, in local criteria and with the pro-forma of the two banks, net profit was 13% higher due to a 3% rise in gross income and an 8% drop in costs.

ACTIVITY

% var. Sep’13 / Sep’12 (constant EUR)

GROSS INCOME

Constant EUR Million

(*) In euros: +1.7%

33 JANUARY - SEPTEMBER

INFORMATION BY PRINCIPAL SEGMENTS FINANCIAL REPORT 2013

SANTANDER CONSUMER FINANCE (EUR Million)

	3Q’13			(%) o/2Q’13			9M’13			(%) o/9M’12
INCOME STATEMENT
Net interest income		592			1.8			1,761			(1.4	)
Net fees		207			5.2			597			(0.1	)
Gains (losses) on financial transactions		2			—			1			—
Other operating income (1)		(0	)		(97.8	)		(7	)		635.3
Gross income		801			3.5			2,352			(0.8	)
Operating expenses		(345	)		1.3			(1,038	)		1.6
General administrative expenses		(292	)		1.4			(881	)		(2.9	)
Personnel		(163	)		2.2			(483	)		4.1
Other general administrative expenses		(130	)		0.5			(398	)		(10.3	)
Depreciation and amortisation		(53	)		0.4			(157	)		37.7
Net operating income		456			5.2			1,315			(2.6	)
Net loan-loss provisions		(158	)		20.6			(460	)		(16.2	)
Other income		(15	)		(48.5	)		(65	)		55.5
Profit before taxes		283			3.4			790			4.0
Tax on profit		(66	)		3.6			(179	)		7.7
Profit from continuing operations		217			3.4			611			2.9
Net profit from discontinued operations		(0	)		100.1			(0	)		(83.0	)
Consolidated profit		217			3.3			611			3.2
Minority interests		9			(6.3	)		26			(12.5	)
Attributable profit to the Group		208			3.8			585			4.1
BALANCE SHEET
Customer loans (2)		55,898			(0.2	)		55,898			(1.6	)
Trading portfolio (w/o loans)		904			(2.3	)		904			(40.5	)
Available-for-sale financial assets		598			(1.4	)		598			81.8
Due from credit institutions (2)		10,966			4.7			10,966			(9.8	)
Intangible assets and property and equipment		940			(2.7	)		940			1.4
Other assets		2,386			(8.1	)		2,386			(7.1	)
Total assets/liabilities & shareholders’ equity		71,692			0.2			71,692			(3.5	)
Customer deposits (2)		30,726			(0.8	)		30,726			(7.1	)
Marketable debt securities (2)		8,380			18.9			8,380			76.5
Subordinated debt (2)		10			(6.1	)		10			(48.3	)
Insurance liabilities		—			—			—			—
Due to credit institutions (2)		17,627			(5.6	)		17,627			(16.1	)
Other liabilities		3,853			4.3			3,853			(15.8	)
Shareholders’ equity (3)		11,094			(0.5	)		11,094			2.0
Other customer funds under management		6			2.1			6			6.4
Mutual and pension funds		6			2.1			6			6.4
Managed portfolios		—			—			—			—
Customer funds under management		39,123			2.8			39,123			3.3
RATIOS (%) AND OPERATING MEANS
ROE		7.50			0.38	p.		6.95			0.02	p.
Efficiency ratio (with amortisations)		43.1			(0.9	p.)		44.1			1.0	p.
NPL ratio		3.96			(0.08	p.)		3.96			—
NPL coverage		109.2			2.3	p.		109.2			(0.5	p.)
Number of employees		11,869			(3.0	)		11,869			(5.8	)
Number of branches		635			1.8			635			(0.5	)

(1).- Including dividends, income from equity-accounted method and other operating income/expenses

(2).- Including all on-balance sheet balances for this item

(3).- Not including profit of the year

NET OPERATING INCOME

EUR Million

ATTRIBUTABLE PROFIT

EUR Million

JANUARY - SEPTEMBER 34

FINANCIAL REPORT 2013 INFORMATION BY PRINCIPAL SEGMENTS

Santander Consumer Finance

u Attributable profit in the third quarter of EUR 208 million, 3.8% more than the second quarter, due to:

• Strong gross income (+3.5%) backed by fee income.

• Strict management of costs (+1.3%).

• Lower loan-loss provisions needs, in line with the high credit quality.

u Attributable profit of EUR 585 million in the first nine months of 2013, 4.1% more year-on-year and noteworthy in an environment of weak consumption and the fall in new car sales in Europe.

u The strategy, penetration and diversification made possible further gains in market share.

• In Spain, agreement to acquire 51% of the consumer finance market leader.

Economic environment

The units of Santander Consumer Finance (SCF) in Continental Europe continued to face a very complex environment characterized by year-on-year falls in private consumption in the euro zone (in the last two years), as well as a significant reduction in new car sales (-6% y-o-y in our footprint).

Strategy

SCF has established a business model that is well adapted to this environment and enables it to gain profitable market share. Its foundations are a wide diversification by countries with critical mass in key products, better efficiency than its peers and a common system of risk control and recoveries. The focus in 2013 is on:

• Management of costs adapted to the moment of the cycle, particularly in deleveraging markets.

• A locally self-funding model, with recourse to wholesale markets and retail deposits.

• The impetus of new loans and cross-selling in accordance with the moment of each market (periphery; central and northern Europe), backed by brand agreements and penetration in the used car market.

Activity

SCF’s gross lending remained stable at around EUR 59,000 million. Growth in units in central and northern Europe, particularly Nordic countries, and decline in countries on the periphery because of deleveraging in these economies.

New loans in the first nine months amounted to EUR 16,537 million (-1% year-on-year). The third quarter loans were 4% higher than the average of the previous two. In year-on-year terms, 4% growth in loans for durable goods and used vehicles, stability in new cars loans (+1%) vs. fall in new car sales (-6%) and 5% drop in direct credit.

By units, new lending was concentrated in Poland and the Nordic countries (+21% in local currency). Slight year-on-year drop in Germany (-2%), but better than the sector (-6% in new car sales), and larger falls in Spain, Italy and Portugal.

The volume of customer deposits remained high, at EUR 30,726 million, differentiating SCF from its competitors and conferring funding stability. Securitizations continued to be made in the third quarter, bringing the volume of medium- and long-term wholesale funding captured so far this year to EUR 3,600 million. At the end of September, customer deposits and medium- and long-term issuances and securitisations financed 69% of the area’s net lending.

Results

Attributable profit of EUR 208 million in the third quarter was 3.8% higher than in the second. The rise in new lending in key segments and management of spreads on loans and deposits enabled net interest income to recover (+1.8%) and pushed fee income (+5.2%).

The 3.5% rise in gross income compared to 1.3% growth in costs improved the efficiency ratio to 43.1% in the third quarter (44.1% in the first nine months). Loan loss provisions increased (+20.6%) but from a second quarter when they were abnormally low, and remained at low levels. This reflected the high credit quality for the standards of the business (NPL ratio of 3.96% and coverage of 109%).

Attributable profit amounted to EUR 585 million in the first nine months, 4.1% more year-on-year and changing the trend. This was due to the smaller fall in gross income (-0.8%), because of the improvement in the cost of deposits, expenses growth in line with inflation and, above all, reduced loan-loss provisions (-16.2%).

Of note was year-on-year profit growth in the Nordic countries, fuelled by gross income, and Spain, because of lower provisions. Profits picked up strongly in the third quarter in Germany because of the faster growth in gross income, bringing both items to positive growth rates. Italy and Portugal remained weak, in line with their economies.

The UK (included in Santander UK for accounting purposes) posted an attributable profit for the first nine months of EUR 79 million (high one-digit growth in sterling over 2012).

NEW LENDING BY COUNTRIES

% o/total. 9M’13

GROSS INCOME

EUR Million

35 JANUARY - SEPTEMBER

INFORMATION BY PRINCIPAL SEGMENTS FINANCIAL REPORT 2013

UNITED KINGDOM (EUR Million)

				Var. o/ 2Q’13									Var. o/ 9M’12
	3Q’13			(%)			(%) w/o FX			9M’13			(%)			(%) w/o FX
INCOME STATEMENT
Net interest income		877			8.3			8.8			2,489			(2.0	)		2.9
Net fees		243			(5.2	)		(4.7	)		749			(14.1	)		(9.9	)
Gains (losses) on financial transactions		71			(55.6	)		(55.3	)		318			4.0			9.2
Other operating income (1)		6			(15.0	)		(14.6	)		18			14.0			19.6
Gross income		1,197			(2.9	)		(2.5	)		3,573			(4.3	)		0.5
Operating expenses		(630	)		(5.6	)		(5.2	)		(1,955	)		(4.2	)		0.5
General administrative expenses		(529	)		(7.4	)		(6.9	)		(1,661	)		(4.8	)		(0.1	)
Personnel		(327	)		(7.3	)		(6.8	)		(1,033	)		(8.7	)		(4.1	)
Other general administrative expenses		(202	)		(7.6	)		(7.1	)		(627	)		2.2			7.3
Depreciation and amortisation		(100	)		4.9			5.4			(294	)		(0.4	)		4.5
Net operating income		567			0.2			0.7			1,618			(4.4	)		0.4
Net loan-loss provisions		(154	)		28.0			28.6			(436	)		(28.2	)		(24.6	)
Other income		(25	)		(75.2	)		(74.9	)		(170	)		26.9			33.2
Ordinary profit before taxes		387			13.1			13.5			1,013			6.4			11.7
Tax on profit		(81	)		24.2			24.7			(206	)		(8.5	)		(3.9	)
Ordinary profit from continuing operations		306			10.4			10.9			807			11.1			16.6
Net profit from discontinued operations		(0	)		(98.7	)		(98.5	)		(14	)		—			—
Ordinary consolidated profit		306			16.2			16.7			793			1.9			6.9
Minority interests		0			—			—			0			(60.0	)		(58.0	)
Ordinary attributable profit to the Group		306			16.2			16.7			793			1.9			6.9
Net capital gains and provisions		—			—			—			—			(100.0	)		(100.0	)
Attributable profit to the Group		306			16.2			16.7			793			(7.7	)		(3.1	)
BALANCE SHEET
Customer loans (2)		237,138			(0.5	)		(2.9	)		237,138			(12.2	)		(8.0	)
Trading portfolio (w/o loans)		35,645			3.3			0.8			35,645			(18.2	)		(14.3	)
Available-for-sale financial assets		5,387			(10.8	)		(13.0	)		5,387			(20.5	)		(16.7	)
Due from credit institutions (2)		23,814			48.1			44.4			23,814			15.8			21.3
Intangible assets and property and equipment		2,406			1.1			(1.3	)		2,406			(2.7	)		2.0
Other assets		47,379			(4.6	)		(7.0	)		47,379			0.4			5.2
Total assets/liabilities & shareholders’ equity		351,771			1.4			(1.1	)		351,771			(10.0	)		(5.7	)
Customer deposits (2)		197,252			0.6			(1.8	)		197,252			(7.6	)		(3.2	)
Marketable debt securities (2)		67,086			0.2			(2.3	)		67,086			(11.7	)		(7.5	)
Subordinated debt (2)		4,640			(10.7	)		(12.9	)		4,640			(18.9	)		(15.0	)
Insurance liabilities		—			—			—			—			—			—
Due to credit institutions (2)		32,434			15.0			12.1			32,434			(6.7	)		(2.2	)
Other liabilities		37,221			(0.6	)		(3.1	)		37,221			(21.1	)		(17.4	)
Shareholders’ equity (3)		13,138			0.3			(2.2	)		13,138			(2.9	)		1.8
Other customer funds under management		9,572			(10.4	)		(12.6	)		9,572			(41.1	)		(38.3	)
Mutual and pension funds		9,572			(10.4	)		(12.6	)		9,572			(41.1	)		(38.3	)
Managed portfolios		—			—			—			—			—			—
Customer funds under management		278,550			(0.1	)		(2.6	)		278,550			(10.6	)		(6.3	)
RATIOS (%) AND OPERATING MEANS
ROE		9.44			1.45	p.					8.09			0.29	p.
Efficiency ratio (with amortisations)		52.6			(1.5	p.)					54.7			0.0	p.
NPL ratio		1.98			(0.03	p.)					1.98			0.04	p.
NPL coverage		41.6			(0.5	p.)					41.6			(3.2	p.)
Number of employees		25,375			(0.9	)					25,375			(4.9	)
Number of branches		1,191			0.1						1,191			(5.9	)

(1).- Including dividends, income from equity-accounted method and other operating income/expenses

(2).- Including all on-balance sheet balances for this item

(3).- Not including profit of the year

NET OPERATING INCOME

Constant EUR Million

(*) In euros: +0.2%

ATTRIBUTABLE PROFIT

Constant EUR Million

(*) In euros: +16.2%

JANUARY - SEPTEMBER 36

FINANCIAL REPORT 2013 INFORMATION BY PRINCIPAL SEGMENTS

United Kingdom (all changes in sterling)

u Attributable profit in the third quarter of £261 million, 16.7% more than in the second quarter:

• Net interest income rose (+8.8%) for the third straight quarter, with improving asset spreads and lower funding cost.

• Costs remained under control (-5.2%).

u The profit of continued operations for the first nine months was £687 million, 16.6% more than in the same period of 2012:

• Turning point in net interest income, which for the first time rose in cumulative terms (+2.9%).

• Broadly stable costs (+0.5%), absorbing more investment in businesses.

• Loan-loss provisions fell 24.6%, with better credit quality maintained in retail and corporate businesses.

u 1|2|3 World continued to increase its number of customers and the levels of business activity.

u Loans to and deposits from corporates continued to register double-digit growth.

Economic environment

The pace of economic growth in the UK economy has picked up in 2013. After growth of 0.1% in 2012, economic activity increased by 0.4% in the first quarter of 2013 and by 0.7% in the second.

Economic activity has continued to be supported by the Monetary Policy Committee (MPC) which has held the bank rate at a record low of 0.5% since March 2009 and has undertaken a quantitative easing programme of £375 billion to date.

In August a new policy approach of ‘forward guidance’ was announced, with the MPC committing to not raising the bank rate at least until the UK unemployment rate has fallen to a threshold of 7% (subject to certain conditions). Unemployment is currently 7.7%.

Inflation has remained above its 2% target. CPI inflation at 2.7% in September means that inflation is continuing to run ahead of average earnings increases, so maintaining the reduction in households’ real earnings and, in turn, contributing to relatively subdued consumer spending growth.

Borrowing growth also remains subdued, with annual lending growth to households at 1%, while annual lending growth to non-financial companies has continued to be negative.

Strategy

The strategy of Santander UK is built around three priorities: loyal and satisfied customers to become a stronger retail relationship bank; the ‘Bank of Choice’ for UK businesses, diversifying through the growth of our corporate banking capability; and with consistent profitability and a strong balance sheet.

In line with this strategy and to grow its business, Santander UK continues to develop innovative products for retail and affluent customers and for SMEs.

Among these products, the 1|2|3 World offering (current account, credit card, savings, etc.) is designed to build closer customer relationships and loyalty. 1|2|3 World rewards customers who use the products on a regular basis, and has proved to be one of the most successful offerings in the market. The Select proposition for affluent clients continued to be developed, following a successful pilot in 2012.

Santander UK’s strategy of portfolio diversification is led by the growth of its corporate business. Santander UK maintained its support for and grew its lending to corporate customers, whilst expanding its systems and capabilities to develop its presence in this market. The Breakthrough programme offers SMEs access to innovative investment funding. SMEs are supported through a network of 37 regional corporate business centres (33 a year ago).

Balance sheet strength underpins this strategy; capital, funding and liquidity are all robust.

The Prudential Regulation Authority (PRA) in its recent stress test confirmed Santander UK’s strong capital position. Santander UK has the best capital ratio among the main banks and was one of three banks in the UK that was not required to increase its capital

Wholesale funding of less than one year remained broadly stable. Liquid assets decreased £6.8 billion. Balances have been managed down given regulatory guidance, greater stability in the capital markets and as a consequence of the actions taken to strengthen the balance sheet over the last three years. This trend is expected to continue in the fourth quarter.

Activity

Santander UK is focused on the United Kingdom. Around 80% of customer loans are prime mortgages for homes in the UK. The portfolio of mortgages is of high quality, with no exposure to self-certified or subprime mortgages whilst buy to let loans are around 1% of customer loans. The net loan to deposit ratio was 120%, 6 percentage points lower than in September 2012. This was a consequence of the managed reduction of loans exceeding customer deposit outflows.

In local criteria, customer loans amounted to £188,700 million, 5% lower than in September 2012. This was largely due to a 6% reduction in mortgage loans (mainly ‘interest only’), partially offset by the growth of corporate loans (+11%).

Gross mortgage lending amounted to £12,870 million in the first nine months, £1,400 million more than for the same period in 2012.

The gross lending market share was 10.4%, down from 11.0% in the same period of 2012, as management maintained its tight lending criteria on interest only and higher loan to value (LTV) mortgages. The balance is expected to stabilize with the launch of the range of flexible mortgages (the ‘Freedom’ range) and participation in the Government’s Help to Buy programme.

37 JANUARY - SEPTEMBER

INFORMATION BY PRINCIPAL SEGMENTS FINANCIAL REPORT 2013

RETAIL CURRENT ACCOUNT BALANCES

Sterling billion

Corporate Banking lending increased 11% year-on-year to £21,500 million, with growth in loans to SMEs up 11% to £11,200 million (market share up 70 b.p. to 5.7% in twelve months) and lending to larger corporates up 12%.

Customer deposits of £148,500 million decreased 3% compared to September 2012. The strategy of a managed reduction in the more rate sensitive deposits continued (mainly maturities of higher rate eSaver products in the quarter) with their replacement by those deposits that offer a better relationship opportunity. The market share of deposits was 8.8%.

Current account balances grew by £10,200 million in the last year, thanks to the 1|2|3 Current Account attracting more good quality and loyal customers who have their primary bank account with Santander UK. At the end of September 2013, Santander UK had more than 2.2 million customers in its range of 1|2|3 World products and this year has gained 900,000 customers.

The stronger and more stable deposit base also allowed greater flexibility to adjust the issuance programme.

Results

Against the second quarter, attributable profit for the third quarter was 16.7% higher at £261 million (+10.9% before discontinued operations).

Net interest income rose for the third quarter running (+8.8%), due to the improvement in customer spreads, benefiting in the quarter from the maturity of high cost products.

Fee income was £10 million (-4.7%) lower, largely because of GBM. Trading gains returned to lower levels, similar to those in previous quarters, following the large rise in the second quarter.

Operating expenses fell 5.2% . Loan-loss provisions increased 28.6% compared to the low second quarter, although they were still the second lowest amount in the last two years.

Compared to the first nine months of 2012, attributable profit of continuing operations was 16.6% higher at £687 million. Ordinary attributable profit after discontinued operations (the co-brand cards business was sold in the second quarter of 2013) was 6.9% higher.

Net interest income was £2,120 million in the first nine months, 2.9% higher year-on-year and for the first time this year were higher than the same period of 2012. Fee income fell 9.9% year-on-year, mainly due to reduced activity in GBM.

Operating expenses were only 0.5% greater than in the first nine months of 2012, absorbing the investments in retail and corporate banking. These investment programmes continued to support the business transformation and provide the underpinning for future efficiency improvements. The efficiency ratio for the nine months to September was 54.8% with gross income and operating expenses growth in parallel.

Loan-loss provisions fell 24.6% period-on-period, with improving credit quality across the product range.

The non-performing loan ratio (NPL) of 1.98% in September was slightly lower than at the end of 2012. The stock of residential properties in possession remained very low at 0.06% of the total portfolio, in line with September 2012 and still below industry standards.

In short, the results for the first nine months underscored a further improvement in the period-on-period performance, and continuing the progress evident in the second quarter. Net interest income was higher, net interest income/average customer assets improved to 1.59% from 1.46% and operating expenses were steady.

ACTIVITY

% var. Sep’13 / Sep’12 (constant EUR)

GROSS INCOME

Constant EUR Million

(*) In euros: -2.9%

JANUARY - SEPTEMBER 38

FINANCIAL REPORT 2013 INFORMATION BY PRINCIPAL SEGMENTS

LATIN AMERICA (EUR Million)

				Var. o/ 2Q’13									Var. o/ 9M’12
	3Q’13			(%)			(%) w/o FX			9M’13			(%)			(%) w/o FX
INCOME STATEMENT
Net interest income		3,573			(10.6	)		(1.0	)		11,625			(14.9	)		(6.0	)
Net fees		1,126			(11.8	)		(2.7	)		3,679			(4.0	)		5.6
Gains (losses) on financial transactions		329			56.4			67.0			878			2.8			13.7
Other operating income (1)		(4	)		—			—			1			—			—
Gross income		5,024			(8.5	)		1.0			16,184			(11.3	)		(2.2	)
Operating expenses		(2,105	)		(5.1	)		4.1			(6,518	)		(4.2	)		5.3
General administrative expenses		(1,888	)		(4.8	)		4.5			(5,833	)		(5.4	)		4.1
Personnel		(1,040	)		(6.0	)		3.0			(3,255	)		(6.8	)		2.4
Other general administrative expenses		(848	)		(3.1	)		6.2			(2,578	)		(3.5	)		6.3
Depreciation and amortisation		(217	)		(8.3	)		1.1			(685	)		7.0			17.4
Net operating income		2,919			(10.8	)		(1.2	)		9,665			(15.5	)		(6.6	)
Net loan-loss provisions		(1,527	)		(13.1	)		(3.0	)		(5,086	)		(9.5	)		1.0
Other income		(146	)		(0.3	)		9.2			(356	)		(51.8	)		(45.0	)
Profit before taxes		1,246			(8.9	)		0.1			4,224			(16.9	)		(9.6	)
Tax on profit		(311	)		8.8			19.3			(943	)		(20.7	)		(12.3	)
Profit from continuing operations		935			(13.6	)		(4.9	)		3,280			(15.8	)		(8.7	)
Net profit from discontinued operations		—			—			—			—			—			—
Consolidated profit		935			(13.6	)		(4.9	)		3,280			(15.8	)		(8.7	)
Minority interests		203			(5.5	)		3.8			692			11.4			23.1
Attributable profit to the Group		733			(15.6	)		(7.1	)		2,589			(20.9	)		(14.6	)
BALANCE SHEET
Customer loans (2)		135,832			(3.0	)		1.7			135,832			(4.6	)		8.0
Trading portfolio (w/o loans)		26,861			(12.0	)		(7.9	)		26,861			(1.3	)		8.7
Available-for-sale financial assets		18,926			(13.0	)		(9.0	)		18,926			(19.1	)		(8.2	)
Due from credit institutions (2)		27,670			4.8			9.6			27,670			(1.1	)		10.2
Intangible assets and property and equipment		3,948			(2.7	)		2.6			3,948			(9.8	)		3.8
Other assets		53,205			10.3			16.0			53,205			2.5			16.4
Total assets/liabilities & shareholders’ equity		266,443			(1.7	)		3.1			266,443			(3.9	)		8.4
Customer deposits (2)		132,114			(4.2	)		0.6			132,114			(2.1	)		10.7
Marketable debt securities (2)		28,455			(2.0	)		2.7			28,455			7.3			22.8
Subordinated debt (2)		3,941			(9.3	)		(5.1	)		3,941			(32.6	)		(22.8	)
Insurance liabilities		—			—			—			—			—			—
Due to credit institutions (2)		35,950			10.8			15.7			35,950			(8.5	)		2.1
Other liabilities		43,612			0.8			5.5			43,612			(12.2	)		(1.6	)
Shareholders’ equity (3)		22,370			(7.0	)		(2.4	)		22,370			6.9			20.8
Other customer funds under management		66,798			5.1			10.0			66,798			7.0			19.9
Mutual and pension funds		52,816			6.5			11.7			52,816			5.7			19.9
Managed portfolios		13,982			0.2			3.9			13,982			12.1			20.2
Customer funds under management		231,309			(1.5	)		3.3			231,309			0.7			13.8
RATIOS (%) AND OPERATING MEANS
ROE		12.74			(0.98	p.)					14.32			(4.96	p.)
Efficiency ratio (with amortisations)		41.9			1.5	p.					40.3			3.0	p.
NPL ratio		5.32			0.06	p.					5.32			0.01	p.
NPL coverage		82.9			(2.5	p.)					82.9			(6.9	p.)
Number of employees		87,708			(0.8	)					87,708			(3.9	)
Number of branches		5,963			(0.6	)					5,963			(0.4	)

(1).- Including dividends, income from equity-accounted method and other operating income/expenses

(2).- Including all on-balance sheet balances for this item

(3).- Not including profit of the year

NET OPERATING INCOME

Constant EUR Million

(*) In euros: -10.8%

CONSOLIDATED PROFIT

Constant EUR Million

(*) In euros: -13.6%

39 JANUARY - SEPTEMBER

INFORMATION BY PRINCIPAL SEGMENTS FINANCIAL REPORT 2013

Latin America (all changes in constant currency)

u Attributable profit in the third quarter was EUR 733 million. Before taxes and minority interests, profit was 0.1% higher over the second quarter.

• Stable gross income (+1.0%).

• Costs rose (+4.1%) because of business development and seasonal factors.

• Provisions declined (-3.0%) for the second quarter running due to Brazil.

u Attributable profit of EUR 2,589 million in the first nine months, 14.6% lower year-on-year (-7.6% without the perimeter effect).

• Lower gross income (-2.2%) with net interest income affected by the reduction in spreads (Brazil, due to change of mix).

• Higher costs (+5.3%), due to business development. Brazil’s rise below inflation and different quarterly distribution of costs in Mexico.

• Loan loss provisions repeated (+1.0%), a slower pace of growth

u Lending grew 8% and deposits 9%, including “letras financieras”.

• Growth in the third quarter in lending and in deposits (+2% both).

Grupo Santander has the largest international franchise in the region. It has 5,963 branches and points of attention, 27,618 ATMs, over 42 million customers and market shares of 10.4% in loans and 10.2% in deposits.

Economic environment

In aggregate terms, Latin America registered higher growth in business in the second quarter (+3.1% y-o-y; 2.4% in the first quarter), though varied by countries and in some cases, such as Brazil, due to seasonal factors. However, in the current context, various factors are slowing down growth compared to previous periods (tighter financial conditions; less favourable environment of raw materials, etc.).

Inflation remains moderate (5.0% in September on average as against 6.3% in the middle of the year), with no threats in the medium term of rises in most countries. Leaving aside Argentina and Uruguay whose inflation rates have stabilized at high levels, the rest of countries are within the target ranges of their respective central banks. Brazil’s inflation slowed down in the quarter.

This scenario of growth and inflation provides leeway for central banks to promote growth in some cases: Mexico cut its benchmark rate to 3.75% in the third quarter and Chile did likewise in October by 25 b.p. to 4.75%. In other cases such as Brazil, inflationary tensions are carrying more weight, leading central banks to lift interest rates.

The region’s monetary policy is also determined by the volatility of financial markets as a result of the possible withdrawal of the Federal Reserve’s stimulus packages (announced and later denied),

which conditioned the evolution of foreign currencies. Currencies have depreciated by up to 10% on average since May (15% the Brazilian real), and reduced to half that after the FED confirmed it would maintain the volume of bond purchases.

In any case, the region continues to have the strengths to face possible bouts of volatility including a high level of reserves built up over the last few years ($743,000 million or 15% of GDP in Santander’s footprint), moderate budget deficits (2013 estimate: 2.3% of GDP, according to the IMF) and low ratios of external public and private debt (2013 estimate: 25% of GDP, according to the IMF).

In the countries where Santander operates (Brazil, Mexico, Chile, Argentina, Uruguay, Peru and Puerto Rico), banking business (loans + deposits) in financial systems grew 12% year-on-year.

Lending rose 15%. Loans to individuals increased 15% (consumer credit+cards: +12%; mortgages: +22%), while credit to companies and institutions rose 14%. Deposits grew 8%, with demand deposits up 14% and time deposits 3%.

Strategy

The strategy continues to focus on expansion, consolidation and continuous improvement in the business of the commercial franchise. The range of products and services was enhanced in the third quarter and tailored to suit customers’ needs. This will spur long-term growth in business.

Improving transaction business for customers is key for ensuring growth, particularly of recurring revenues, while the continuous watch over the quality of risk and the measures being taken to enhance efficiency should be reflected in higher profitability.

The main developments on activity and results are set out below. All year-on-year percentage changes exclude the exchange rate impact.

Activity

Lending (excluding repos) increased 8% in the first nine months year-on-year. By products: cards increased 10%, commercial credit (companies in all their range and institutions) 9%, consumer credit was flat, and mortgages rose 8%. Total lending increased 2% in the third quarter.

Deposits excluding repos increased 9% year-on-year (including Brazil’s “letras financieras”), with demand deposits up 18% and time deposits similar to those of September 2012. Mutual funds rose 20%. Deposits without repos increased 2% in the quarter.

Results

Gross income in the third quarter was EUR 5,024 million, 1.0% more than the second quarter.

JANUARY - SEPTEMBER 40

FINANCIAL REPORT 2013 INFORMATION BY PRINCIPAL SEGMENTS

LATIN AMERICA. INCOME STATEMENT (EUR Million)

	Net operating income																		Attributable profit to the Group
				o/ 2Q’13									o/ 9M’12									o/ 2Q’13									o/ 9M’12
	3Q’13			(%)			(%) w/o FX			9M’13			(%)			(%) w/o FX			3Q’13			(%)			(%) w/o FX			9M’13			(%)			(%) w/o FX
Brazil		1,859			(15.5	)		(4.0	)		6,487			(22.3	)		(11.8	)		358			(14.7	)		(2.8	)		1,277			(23.6	)		(13.3	)
Mexico		446			(9.5	)		(4.6	)		1,412			11.4			9.8			123			(38.2	)		(33.5	)		564			(31.8	)		(32.8	)
Chile		342			8.6			14.9			976			(3.1	)		(0.6	)		116			19.3			25.8			316			(11.2	)		(8.9	)
Argentina		188			12.1			19.8			520			8.2			31.4			88			10.4			18.3			254			7.8			31.0
Uruguay		22			(11.3	)		(0.7	)		71			22.0			23.1			14			2.1			13.4			42			15.3			16.3
Puerto Rico		31			(14.9	)		(13.6	)		104			(22.6	)		(20.4	)		12			(65.3	)		(64.6	)		64			65.1			69.8
Rest		(9	)		14.8			12.7			(25	)		—			—			(8	)		3.4			2.7			(23	)		—			—
Subtotal		2,880			(10.9	)		(1.1	)		9,545			(15.6	)		(6.6	)		703			(15.9	)		(7.0	)		2,495			(21.2	)		(14.7	)
Santander Private Banking		39			(6.1	)		(4.7	)		121			(11.4	)		(8.9	)		30			(9.7	)		(8.3	)		94			(14.2	)		(11.8	)
Total		2,919			(10.8	)		(1.2	)		9,665			(15.5	)		(6.6	)		733			(15.6	)		(7.1	)		2,589			(20.9	)		(14.6	)

Good performance of net interest income, which in an environment of lower activity and pressure on spreads in some countries was almost unchanged, thanks to the recovery of volumes and management of prices. Fee income was 2.7% lower because of those from capital markets in Brazil and the impact of regulations change in Chile. Trading gains surged 67.0% over the second quarter (the lowest of the last two years).

Operating expenses grew 4.1%, due to the entry into force of wage agreements in Brazil, development of commercial projects and higher IT depreciation. Net operating income was EUR 2,919 million.

Loan-loss provisions declined 3.0%, as Brazil kept up the reduction trend begun in the last quarter, which was partly offset by the rise in Mexico and, to a lesser extent, Chile.

The NPL ratio was 5.32%, 6 b.p. above the second quarter, and coverage was 83%.

After incorporating loan-loss provisions and other provisions, profit before tax was EUR 1,246 million. Including taxes and minority interests, attributable profit was 7.1% lower than in the second quarter at EUR 733 million.

Gross income was 2.2% lower in the first nine months than in the same period of 2012, with the following aspects:

• Net interest income declined 6.0%, affected by the pressure of spreads and some change of mix to lower cost credit

products, but also with lower spreads. These effects were partly offset by the rise in volumes and management of spreads.

• Fee income increased 5.6% year-on-year: that from cards and foreign trade rose by 18% each.

• Trading gains rose 13.7% over the first nine months of 2012, mainly due to lower interest rates, the movement in exchange rates (Mexico) and sale of portfolios (Chile).

• Operating expenses were 5.3% higher year-on-year, due to investment in networks and commercial projects (some traditional and others focused on customers), inflationary pressures on salary agreements and third party services, and higher depreciation.

• As a result of the performance of revenues and costs, net operating income dropped 6.6% year-on-year and the efficiency ratio was 40.3%.

• Loan-loss provisions were almost flat (+1.0%), improving the trend thanks to some stabilization in NPLs and higher volumes. The comparison was affected by the release of provisions in Mexico in the first half of 2012.

• Profit before tax was EUR 4,224 million (-9.6%).

• Higher minority interests in Mexico left attributable profit for the first nine months at EUR 2,589 million, 14.6% lower year-on- year.

• Retail Banking’s net profit declined 17.3% and Global Wholesale Banking’s 10.4% year-on-year.

ACTIVITY

% var. Sep’13 / Sep’12 (constant EUR)

(*) Including letras financieras

GROSS INCOME

Constant EUR Million

(*) In euros: -8.5%

41 JANUARY - SEPTEMBER

INFORMATION BY PRINCIPAL SEGMENTS FINANCIAL REPORT 2013

BRAZIL (EUR Million)

				Var. o/ 2Q’13									Var. o/ 9M’12
	3Q’13			(%)			(%) w/o FX			9M’13			(%)			(%) w/o FX
INCOME STATEMENT
Net interest income		2,268			(16.4	)		(5.1	)		7,783			(21.1	)		(10.5	)
Net fees		651			(17.2	)		(6.1	)		2,211			(6.8	)		5.7
Gains (losses) on financial transactions		203			230.3			250.7			480			(19.3	)		(8.5	)
Other operating income (1)		5			182.3			199.0			7			—			—
Gross income		3,127			(12.2	)		(0.7	)		10,482			(17.8	)		(6.8	)
Operating expenses		(1,268	)		(6.8	)		4.7			(3,995	)		(9.5	)		2.6
General administrative expenses		(1,132	)		(6.2	)		5.4			(3,553	)		(11.1	)		0.9
Personnel		(601	)		(7.6	)		4.0			(1,928	)		(13.4	)		(1.8	)
Other general administrative expenses		(532	)		(4.5	)		6.9			(1,625	)		(8.1	)		4.2
Depreciation and amortisation		(136	)		(11.8	)		(0.5	)		(441	)		5.4			19.6
Net operating income		1,859			(15.5	)		(4.0	)		6,487			(22.3	)		(11.8	)
Net loan-loss provisions		(1,065	)		(22.4	)		(11.2	)		(3,908	)		(17.4	)		(6.3	)
Other income		(126	)		(4.9	)		5.3			(337	)		(52.5	)		(46.1	)
Profit before taxes		669			(4.0	)		8.4			2,242			(22.8	)		(12.5	)
Tax on profit		(198	)		16.4			29.5			(591	)		(23.5	)		(13.3	)
Profit from continuing operations		471			(10.6	)		1.5			1,651			(22.6	)		(12.2	)
Net profit from discontinued operations		—			—			—			—			—			—
Consolidated profit		471			(10.6	)		1.5			1,651			(22.6	)		(12.2	)
Minority interests		113			5.4			18.6			374			(19.0	)		(8.1	)
Attributable profit to the Group		358			(14.7	)		(2.8	)		1,277			(23.6	)		(13.3	)
BALANCE SHEET
Customer loans (2)		69,395			(2.7	)		2.4			69,395			(7.8	)		6.8
Trading portfolio (w/o loans)		11,663			(5.0	)		(0.0	)		11,663			25.9			45.9
Available-for-sale financial assets		12,273			(17.3	)		(13.0	)		12,273			(21.1	)		(8.5	)
Due from credit institutions (2)		11,681			4.6			10.0			11,681			(5.7	)		9.3
Intangible assets and property and equipment		2,863			(3.4	)		1.6			2,863			(14.8	)		(1.2	)
Other assets		31,265			(3.1	)		2.0			31,265			(9.5	)		4.9
Total assets/liabilities & shareholders’ equity		139,140			(3.9	)		1.1			139,140			(7.5	)		7.2
Customer deposits (2)		65,801			(4.9	)		0.0			65,801			(5.4	)		9.6
Marketable debt securities (2)		20,000			(6.8	)		(1.9	)		20,000			6.3			23.2
Subordinated debt (2)		2,858			(8.7	)		(3.9	)		2,858			(35.9	)		(25.7	)
Insurance liabilities		—			—			—			—			—			—
Due to credit institutions (2)		14,601			0.2			5.4			14,601			(25.5	)		(13.6	)
Other liabilities		23,286			0.9			6.2			23,286			(9.7	)		4.7
Shareholders’ equity (3)		12,595			(5.9	)		(1.0	)		12,595			3.4			19.9
Other customer funds under management		39,962			12.2			18.0			39,962			11.8			29.6
Mutual and pension funds		36,836			13.3			19.2			36,836			13.1			31.1
Managed portfolios		3,126			0.3			5.6			3,126			(1.3	)		14.4
Customer funds under management		128,620			(0.6	)		4.6			128,620			0.0			15.9
RATIOS (%) AND OPERATING MEANS
ROE		11.22			(0.57	p.)					12.55			(5.21	p.)
Efficiency ratio (with amortisations)		40.5			2.4	p.					38.1			3.5	p.
NPL ratio		6.12			(0.37	p.)					6.12			(0.67	p.)
NPL coverage		92.0			0.7	p.					92.0			—
Number of employees		50,409			(2.1	)					50,409			(8.2	)
Number of branches		3,661			(1.0	)					3,661			(3.2	)

(1). - Including dividends, income from equity-accounted method and other operating income/expenses

(2). - Including all on-balance sheet balances for this item

(3). - Not including profit of the year

NET OPERATING INCOME

Constant EUR Million

(*) In euros: -15.5%

ATTRIBUTABLE PROFIT

Constant EUR Million

(*) In euros: -14.7%

JANUARY - SEPTEMBER 42

FINANCIAL REPORT 2013 INFORMATION BY PRINCIPAL SEGMENTS

Brazil (all changes in local currency)

u Attributable profit of EUR 358 million in the third quarter, 2.8% lower than in the second quarter.

• Gross income declined 0.7% due to lower spreads on loans as a result of the change of mix in segments and products.

• Provisions dropped 11.2%, reflecting lower NPLs.

u Attributable profit for the first nine months was down 13.3% at EUR 1,277 million, due to:

• Pressure on gross income (-6.8%), mainly from the change of mix. Of note was the 5.7% growth in fee income.

• Operating expenses rose 2.6%, less than half the inflation rate.

• Lower provisions (-6.3%), which are tending toward normalization.

u Loans and total funds captured grew 7% and 8% year-on-year respectively, (+2% and +1%, respectively, higher than June 2013).

Santander Brazil is one of the three largest private sector banks in by total assets and the largest foreign bank in the country, with a market share in lending of 8.6%. It operates in the main regions of the country, with 3,661 branches and points of banking attention, 17,518 ATMs and more than 28 million customers.

Economic environment

Brazil is the world’s seventh largest economy (in nominal GDP terms), according to IMF estimates. GDP grew 0.9% in 2012. The IMF expects Brazil to be the sixth largest economy in 2013 and the fifth in 2016. The economy grew 1.5% in the second quarter, spurred by good harvests, construction and higher investment (+3.6%).

The labour market is still firm, with the jobless rate at an historic low. In August, the rate was 5.3%. Close to 273,000 new jobs have been created this year and real disposable incomes increased 1.3% in 12 months.

The central bank raised the Selic at its October meeting to 9.5%, the fifth consecutive rise since January, the last two by 50 b.p. each (one at its August meeting and the other one in October 2013). These measures should help to contain inflation, which was 5.9% at September, below the 6.5% maximum target for 2013.

The system’s total bank lending rose 1.1% in August and 16% year-on-year. This growth mainly came from directed lending (+2.3% in the month and +27% in 12 months). State banks’ lending increased 28% in 12 months, private sector banks 5% and foreign banks 7%.

Strategy

The strategy is based on the following objectives:

• Be the best bank in quality of service, backed by the strength of its IT platform.

• Intensify customer relations.

• Strengthen business in key segments such as high-income clients, SMEs, acquiring business, cards and real estate loans.

• Continue to strengthen the Santander brand.

• All of this accompanied by prudent risk management.

Further progress was made in implementing the strategy of greater customer linkage this year. In line with this, the “Cuenta Santander Combinada” was launched, which has a packet of personalized services to suit the needs of different types of clients, seeking to increase transactional banking. Various alliances were also forged, such as the one with Carsales, the Australian leader in the on-line sale of vehicles, in order to consolidate in the Brazilian market through the transfer of technology and knowledge, and greater focus in the operation.

“Santander Select” was launched in April 2013 for the high-income segment, following the model already developed in other countries by Grupo Santander. Specialized products and services were designed.

In cards, the bank has 52 million credit and debit cards: lending rose 6% in the last 12 months.

In line with the objective of strengthening acquiring business, an agreement was signed in August with iZettle. Our clients can now carry out debit and credit transactions via smartphones and tablets, with a reader of cards and software. This association will enable us to help small businesses to improve the financial management of their business and increase their sales in a safe way. This will boost our link within this target segment and our acquiring business in Brazil.

Banco Santander Brazil announced on September 26 tha it will optimise its capital structure by replacing Core Tier 1 capital stock of BRL 6,000 million (an amount that will be distributed on a pro rata basis among its shareholders) with new issue instruments eligible as regulatory capital for an equivalent value, which will be offered to the bank’s shareholders. The operation requires the necessary regulatory approvals and by the bank’s shareholders.

The new structure will improve the bank’s capital composition, by increasing the return on capital and maintaining at the same time the amount of total regulatory capital and capital ratios (BIS II of around 21.5% and BIS III fully loaded —estimate with full implementation— of about 18.9%) above those of other commercial banks in Brazil. With these ratios, the Group maintains its capacity to keep on growing its business in the country.

43 JANUARY - SEPTEMBER

INFORMATION BY PRINCIPAL SEGMENTS FINANCIAL REPORT 2013

Activity

Lending rose 2% in the third quarter, mainly mortgages and large companies.

In year-on-year terms growth was 7%, backed mainly by mortgages (+30%), where our market penetration is still low, and by lending to SMEs and large companies which increased 6% and 13%, respectively. On the other hand, consumer and revolving credit (“cheque especial” and “cheque empresa”) declined in the last 12 months.

Total funds were 1% higher than in June, mainly due to demand and savings deposits (+5%).

Year-on-year growth was 8%, with demand + savings deposits up 22%. Mutual funds increased 31%.

Santander Brazil’s market share in total loans is 8.6% (10.8% for unrestricted lending) and 7.6% in deposits.

Results

Gross income in the third quarter (all changes in local currency) amounted to EUR 3,127 million, 0.7% less than in the second quarter.

• Net interest income declined 5.1% quarter-on-quarter, as the larger volumes did not offset the lower spreads on loans, largely resulting from the change of mix. Lower contribution of the ALCO portfolio due to active management, which produced higher trading gains (the latter rose over the second quarter, when they recorded an amount well below the average).

• Fee income was lower, mainly from capital markets, which are more volatile and were very high in the second quarter. On the other hand, those from mutual funds and cash management rose.

Operating expenses increased in the quarter, due to the investments in business expansion and updating of contracts and rentals.

Moreover, the collective bargaining agreement, which is retroactive to September, was also signed.

Loan loss provisions made in the third quarter were at their lowest level of the last seven quarters (-11.2% quarter-on-quarter). This evolution confirms the path of improvement in credit quality as has been shown by indicators of early NPLs.

The NPL ratio was 6.12%, 37 b.p. lower than in June. Coverage was 92%, (+1 p.p. in the quarter).

Profit before tax was EUR 669 million (+8.4% quarter-on-quarter). This increase did not feed through to attributable profit because of the higher tax and minority interests.

Gross income in the first nine months was 6.8% lower at EUR 10,482 million, largely due to the fall in net interest income caused by the change of mix of the portfolio and the squeezing of credit spreads, partly offset by growth in lending volumes that was relatively moderate.

Fee income, on the other hand, increased 5.7% to EUR 2,211 million, backed by cards (+19% year-on-year) and insurance (+15%).

Operating expenses rose 2.6% year-on-year, less than half the inflation rate, absorbing the investments made to expand business and the wage agreement reached. Excluding amortizations, costs were flat and reflected the efforts made to control them in recent quarters.

Provisions for loan losses were 6.3% lower than in the first nine months of 2012.

After tax and minority interests, attributable profit declined 13.3% year-on-year to EUR 1,277 million.

Retail Banking’s profit was 19.0% lower, Global Wholesale Banking’s down 2.5% and Asset Management and Insurance’s 1.2%.

ACTIVITY

% var. Sep’13 / Sep’12 (constant EUR)

(*) Including letras financieras

GROSS INCOME

Constant EUR Million

(*) In euros: -12.2%

JANUARY - SEPTEMBER 44

FINANCIAL REPORT 2013 INFORMATION BY PRINCIPAL SEGMENTS

MEXICO (EUR Million)

				Var. o/ 2Q’13									Var. o/ 9M’12
	3Q’13			(%)			(%) w/o FX			9M’13			(%)			(%) w/o FX
INCOME STATEMENT
Net interest income		533			(1.4	)		3.6			1,590			7.4			5.8
Net fees		204			3.7			9.2			615			13.1			11.4
Gains (losses) on financial transactions		31			(47.9	)		(44.2	)		145			111.5			108.4
Other operating income (1)		(12	)		—			—			(19	)		(29.7	)		(30.8	)
Gross income		756			(5.5	)		(0.5	)		2,330			12.9			11.2
Operating expenses		(310	)		0.9			6.1			(918	)		15.1			13.4
General administrative expenses		(280	)		2.2			7.4			(825	)		15.8			14.1
Personnel		(156	)		2.8			8.0			(456	)		16.4			14.7
Other general administrative expenses		(124	)		1.4			6.7			(368	)		15.1			13.4
Depreciation and amortisation		(30	)		(9.6	)		(4.9	)		(93	)		9.4			7.7
Net operating income		446			(9.5	)		(4.6	)		1,412			11.4			9.8
Net loan-loss provisions		(257	)		39.9			45.4			(583	)		89.1			86.3
Other income		(3	)		104.0			52.3			21			(37.0	)		(37.9	)
Profit before taxes		186			(39.6	)		(35.1	)		850			(14.3	)		(15.6	)
Tax on profit		(23	)		(47.4	)		(43.5	)		(108	)		(34.1	)		(35.0	)
Profit from continuing operations		163			(38.3	)		(33.7	)		742			(10.4	)		(11.8	)
Net profit from discontinued operations		—			—			—			—			—			—
Consolidated profit		163			(38.3	)		(33.7	)		742			(10.4	)		(11.8	)
Minority interests		39			(38.7	)		(34.2	)		178			—			—
Attributable profit to the Group		123			(38.2	)		(33.5	)		564			(31.8	)		(32.8	)
BALANCE SHEET
Customer loans (2)		21,007			(6.4	)		(2.0	)		21,007			(2.5	)		4.8
Trading portfolio (w/o loans)		10,306			(18.5	)		(14.6	)		10,306			(19.6	)		(13.6	)
Available-for-sale financial assets		3,116			(2.4	)		2.2			3,116			(6.4	)		0.6
Due from credit institutions (2)		7,518			28.4			34.4			7,518			6.3			14.2
Intangible assets and property and equipment		377			(0.8	)		3.8			377			12.4			20.8
Other assets		4,931			3.3			8.2			4,931			(0.9	)		6.5
Total assets/liabilities & shareholders’ equity		47,254			(4.1	)		0.4			47,254			(5.6	)		1.4
Customer deposits (2)		25,783			(8.5	)		(4.2	)		25,783			6.7			14.7
Marketable debt securities (2)		2,456			60.1			67.7			2,456			82.9			96.5
Subordinated debt (2)		—			—			—			—			—			—
Insurance liabilities		—			—			—			—			—			—
Due to credit institutions (2)		4,472			(7.4	)		(3.0	)		4,472			(33.6	)		(28.7	)
Other liabilities		11,028			3.3			8.2			11,028			(23.4	)		(17.7	)
Shareholders’ equity (3)		3,515			(13.7	)		(9.6	)		3,515			2.4			10.1
Other customer funds under management		10,293			(4.6	)		(0.1	)		10,293			(2.7	)		4.5
Mutual funds		10,293			(4.6	)		(0.1	)		10,293			(2.7	)		4.5
Managed portfolios		—			—			—			—			—			—
Customer funds under management		38,532			(4.9	)		(0.4	)		38,532			6.8			14.7
RATIOS (%) AND OPERATING MEANS
ROE		12.94			(5.78	p.)					18.88			(7.04	p.)
Efficiency ratio (with amortisations)		41.0			2.6	p.					39.4			0.8	p.
NPL ratio		3.58			1.38	p.					3.58			1.89	p.
NPL coverage		99.0			(43.7	p.)					99.0			(76.4	p.)
Number of employees		14,486			1.3						14,486			8.5
Number of branches		1,229			1.2						1,229			9.4

(1).- Including dividends, income from equity-accounted method and other operating income/expenses

(2).- Including all on-balance sheet balances for this item

(3).- Not including profit of the year

NET OPERATING INCOME

Constant EUR Million

(*) In euros: -9.5%

CONSOLIDATED PROFIT

Constant EUR Million

(*) In euros: -38.3%

45 JANUARY - SEPTEMBER

INFORMATION BY PRINCIPAL SEGMENTS FINANCIAL REPORT 2013

Mexico (all changes in local currency)

u Attributable profit in the third quarter was EUR 123 million, 33.5% lower than in the second quarter, due to various effects:

• A positive impact from the good dynamics of recurring commercial revenues: Net interest income was up 3.6% and fee income 9.2%.

• Impact on costs and provisions of an extraordinary charge.

u Attributable profit for the first nine months was EUR 564 million. Before minority interests 11.8% lower:

• Gross income kept up double-digit growth (+11.2%) and came from the main lines.

• Expenses rose 13.4%, because of increased installed capacity and different quarterly distribution of costs.

• Provisions were 86.3% higher, by the impact of homebuilders and the change in regulation in 2013, and the release in the first half of 2012.

u Lending and deposits excluding repos increased 9% year-on-year.

• Growth in the quarter of 3% in lending and 9% in demand deposits, following the strategy to increase this type of deposits.

Santander is the third largest banking group in Mexico by business volume, with a market share in loans of 13.8% and 14.8% in deposits. It has 1,229 branches and 10.5 million customers.

Economic environment

GDP growth slowed in the second quarter to 1.5% year-on-year from 3.3% in the fourth quarter of 2012. On the political front, the government presented to Congress energy reforms and the economic programme for 2014 that includes a tax reform proposal. The Financial Reform was also approved in the third quarter.

Inflation eased in the third quarter to 3.4%. The core rate remained at below 3%. The peso depreciated 5% against the euro in the third quarter to MXN 17.8/EUR. The banking system’s lending and deposits increased by around 3% in the second quarter. The Banxico benchmark interest rate was cut by 25 b.p. to 3.75%.

Strategy

The focus remained on the high-income and SMEs segments. In the latter, the Group is the leader with growth of 29% y-o-y. In order to increase the transaction linkage of customers,

campaigns to improve the lending rates if various services are contracted were run, as well as differentiated customer attention models supported by a solid multi channel distribution platform. Installed capacity continued to be increased, and the number of personal banking points of attention rose from 66 in 2012 to 191 in 2013.

Activity

Lending grew 9% year-on-year (+14% in retail banking). Consumer credit rose 8%, cards and companies 8% and mortgages 13%. In the third quarter, lending rose 3%. Of note was that of SMEs (+5%) and cards (+3%). Deposits excluding repos rose 9% year-on-year (demand: +22%; time -10%) and mutual funds 5%. Growth in both loans and deposits was higher than the sector’s.

Results

In the third quarter net interest income rose 3.6% over the second quarter, due to the growth in volumes and management of spreads; fee income increased 9.2%, mainly due to investment banking. Trading gains dropped over a high second quarter.

Operating expenses increased 6.1% in the third quarter due to business expansion and the change in regulations pertaining to employee profit sharing.

Provisions rose 45.4% mainly affected by homebuilders (the charge made in the second quarter, in local criteria, was against reserves, and under IFRS it should be recorded against profits). Moreover, the regulations change regarding companies which are now provisioned by expected loss, caused an increase in provisions.

The NPL ratio was 3.6% and coverage 99%. The higher NPLs in the quarter was fully due to homebuilders. Excluding them, NPLs were basically stable.

Gross income in the first nine months maintained its double-digit growth (+11.2%), with the main lines performing well. Of note was fee income (+11.4%) and net interest income (+5.8%).

Operating expenses increased 13.4% because of greater installed capacity (opening of 106 branches in 12 months) and the change from a seasonal profile to a more proportional distribution of the costs envisaged for the year. Loan-loss provisions increased 86.3%, due to the aforementioned impacts and the release of provisions in the first half of 2012.

Net profit was EUR 742 million (-11.8%). The efficiency ratio was 39.4% and the recurrence ratio 74.6%. The ROE was 18.9%.

ACTIVITY

% var. Sep’13 / Sep’12 (constant EUR)

GROSS INCOME

Constant EUR Million

(*) In euros: -5.5%

JANUARY - SEPTEMBER 46

FINANCIAL REPORT 2013 INFORMATION BY PRINCIPAL SEGMENTS

CHILE (EUR Million)

				Var. o/ 2Q’13									Var. o/ 9M’12
	3Q’13			(%)			(%) w/o FX			9M’13			(%)			(%) w/o FX
INCOME STATEMENT
Net interest income		447			9.8			16.1			1,264			0.8			3.4
Net fees		89			(9.4	)		(3.3	)		293			(13.4	)		(11.2	)
Gains (losses) on financial transactions		38			(28.0	)		(23.1	)		122			26.8			30.1
Other operating income (1)		1			(73.2	)		(67.7	)		13			36.4			39.9
Gross income		575			2.2			8.3			1,692			(0.4	)		2.2
Operating expenses		(233	)		(6.0	)		(0.0	)		(716	)		3.5			6.2
General administrative expenses		(206	)		(7.0	)		(1.2	)		(632	)		2.1			4.8
Personnel		(127	)		(7.5	)		(1.6	)		(391	)		0.8			3.4
Other general administrative expenses		(78	)		(6.3	)		(0.4	)		(241	)		4.3			7.0
Depreciation and amortisation		(28	)		2.9			9.2			(84	)		15.0			18.0
Net operating income		342			8.6			14.9			976			(3.1	)		(0.6	)
Net loan-loss provisions		(153	)		4.1			10.3			(456	)		9.4			12.2
Other income		6			63.5			69.1			8			—			—
Profit before taxes		194			13.6			19.9			529			(10.4	)		(8.1	)
Tax on profit		(28	)		(9.1	)		(4.0	)		(74	)		(5.0	)		(2.6	)
Profit from continuing operations		166			18.6			25.0			455			(11.3	)		(9.0	)
Net profit from discontinued operations		—			—			—			—			—			—
Consolidated profit		166			18.6			25.0			455			(11.3	)		(9.0	)
Minority interests		51			17.0			23.4			138			(11.3	)		(9.0	)
Attributable profit to the Group		116			19.3			25.8			316			(11.2	)		(8.9	)
BALANCE SHEET
Customer loans (2)		29,697			(1.3	)		1.9			29,697			(1.1	)		10.4
Trading portfolio (w/o loans)		1,086			(26.1	)		(23.8	)		1,086			(36.8	)		(29.4	)
Available-for-sale financial assets		2,485			4.9			8.3			2,485			(13.9	)		(3.9	)
Due from credit institutions (2)		2,888			(7.5	)		(4.5	)		2,888			(23.5	)		(14.5	)
Intangible assets and property and equipment		324			(4.8	)		(1.8	)		324			(11.3	)		(1.0	)
Other assets		3,274			23.1			27.0			3,274			(7.3	)		3.6
Total assets/liabilities & shareholders’ equity		39,753			(0.7	)		2.5			39,753			(6.1	)		4.9
Customer deposits (2)		22,076			0.5			3.8			22,076			(4.8	)		6.3
Marketable debt securities (2)		5,949			(1.3	)		1.9			5,949			(6.0	)		5.0
Subordinated debt (2)		1,005			(3.3	)		(0.1	)		1,005			(14.4	)		(4.5	)
Insurance liabilities		—			—			—			—			—			—
Due to credit institutions (2)		4,615			(1.6	)		1.6			4,615			(7.0	)		3.9
Other liabilities		3,894			(3.0	)		0.1			3,894			(13.8	)		(3.8	)
Shareholders’ equity (3)		2,213			(4.3	)		(1.2	)		2,213			3.5			15.6
Other customer funds under management		5,670			(0.3	)		2.9			5,670			19.3			33.3
Mutual and pension funds		4,290			(1.4	)		1.8			4,290			(9.7	)		0.8
Managed portfolios		1,380			3.3			6.6			1,380			—			—
Customer funds under management		34,700			(0.0	)		3.2			34,700			(2.1	)		9.3
RATIOS (%) AND OPERATING MEANS
ROE		20.59			5.09	p.					17.39			(3.21	p.)
Efficiency ratio (with amortisations)		40.6			(3.5	p.)					42.3			1.6	p.
NPL ratio		6.00			0.19	p.					6.00			1.00	p.
NPL coverage		49.7			(0.2	p.)					49.7			(11.1	p.)
Number of employees		12,299			0.6						12,299			(0.3	)
Number of branches		488			(2.6	)					488			(1.6	)

(1).- Including dividends, income from equity-accounted method and other operating income/expenses

(2).- Including all on-balance sheet balances for this item

(3).- Not including profit of the year

NET OPERATING INCOME

Constant EUR Million

(*) In euros: +8.6%

ATTRIBUTABLE PROFIT

Constant EUR Million

(*) In euros: +19.3%

47 JANUARY - SEPTEMBER

INFORMATION BY PRINCIPAL SEGMENTS FINANCIAL REPORT 2013

Chile (all changes in local currency)

u Attributable profit in the third quarter was EUR 116 million, 25.8% more than in the second quarter.

• Gross income increased 8.3%, due to net interest income (+16.1%) that benefited from the rise in inflation and growth in target segments.

• Operating expenses were flat.

• Loan loss provisions rose 10.3% mainly due to one-off events in companies.

u Attributable profit of EUR 316 million in the first nine months. Year-on-year fall of 8.9% due to the negative impact of low inflation, the regulation of commissions and higher provisions, although the latter rising at a slower pace in year-on-year terms.

u Lending rose 10% year-on-year and deposits 5% (+2% and +4%, respectively, over June 2013.

Santander is the largest financial group in Chile in terms of assets. It has 488 branches and 3.3 million customers and market shares of 19.0% in loans and 16.6% in deposits.

Economic environment

The economy grew by between 4% and 5%. Investment moderated and private consumption remained robust, backed by good labour market conditions and an unemployment rate of less than 6%. The central bank held inflation within its target range and its key interest rate was cut in October by 25 b.p. to 4.75% (it has been at 5% since January 2012). The peso depreciated 1.4% against the euro in the third quarter and 7.6% in the first nine months.

The banking system’s lending rose 11% and deposits 9%.

Strategy

The Group continued to focus on ensuring long-term profitability in a scenario of lower spreads and higher NPLs. Part of the strategy involves boosting the growth of business with high and medium income segments, companies and SMEs. In line with this, the new range of “Santander Select” was launched, with products and services for high-income clients.

Santander continued to improve processes in order to enhance operating efficiency and customer satisfaction, adjusting attention models and promoting multichanneling, while keeping a very close watch on risk levels.

Activity

Lending rose 10% year-on-year (high-income segment: +12%; SMEs and companies: +16%). Deposits increased 5% (+12% demand deposits). Lending in the third quarter was 2% higher than in the second and deposits 4%.

Results

In the third quarter, gross income rose 8.3% quarter-on-quarter, backed by:

• Net interest income increased 16.1%, mainly due to higher inflation. In the third quarter, inflation (UF) was 1.0%, the highest quarterly figure, compared to slightly negative (-0.1%) in the second quarter. This was coupled with the faster growth in volumes in target segments (high-income clients and SMEs rose close to 4% in the quarter).

• Fee income was 3.3% lower, with a good performance by GBM, while that from insurance and cards continued to be affected by regulatory changes.

• Trading gains were lower than in the second quarter, when they were high, due to portfolio sales and the change in long-term interest rates.

Loan-loss provisions increased 10.3%, impacted by some one-off events in companies. The risk premium remained stable.

Profit before tax was 19.9% higher than in the second quarter. After tax and minority interests, attributable profit rose 25.8%.

Gross income changed trend and grew 2.2% year-on-year. Net interest income was up 3.4% and trading gains also performed well, while fee income dropped 11.2%, due to regulatory impacts. Operating expenses rose 6.2% because of the improved installed capacity and provisions grew 12.2% (a slower pace).

Attributable profit was 8.9% lower (-22.9% in the first half).

The efficiency ratio was 42.3%, the recurrence ratio 46.4% and ROE 17.4%. The NPL ratio was 6.00% and coverage 50%.

ACTIVITY

% var. Sep’13 / Sep’12 (constant EUR)

GROSS INCOME

Constant EUR Million

(*) In euros: +2.2%

JANUARY - SEPTEMBER 48

FINANCIAL REPORT 2013 INFORMATION BY PRINCIPAL SEGMENTS

Argentina

Attributable profit was EUR 88 million in the third quarter, 18.3% more than the second quarter. Gross income rose 10.2%, spurred by growth in net interest income, fee income and trading gains. This, combined with stable costs, pushed up net operating income by 19.8%. All percentages are in local currency.

Profit in the first nine months was EUR 254 million, 31.0% more than in the same period of 2012. Gross income and net operating income rose by more than 30%. The efficiency ratio was 46.4%, the recurrence ratio 82.6%, ROE 38.7%, the NPL ratio 1.45% and coverage 137%.

Lending increased 33% year-on-year and deposits 32% (demand deposits: +29% and time: +38%).

Santander Río is one of the country’s leading banks, with market shares of 8.8% in lending and 9.1% in deposits. It has 377 branches and 2.5 million customers.

Moreover, Santander Río was named the best bank in Argentina in Internet and the best in Latin America in Mobile Banking by Global Finance.

The economy grew at an annual rate of 8.2% in the second quarter (+3.1% in the first quarter). Inflation was more than 10%, and interest rates reached 18%. The financial system is strong, with a NPL ratio of 1.9%, coverage of 133%, high levels of liquidity and a capital ratio of 13.3%. Both, lending and deposits grew 34% in the last 12 months.

Santander continued to focus on transaction services and collection and payment methods via an offer tailored to suit the needs of each customer segment. The objective is to continue to increase recurring revenues, on the basis of low cost demand deposits and higher revenues from services.

The strategy continued to focus on strengthening penetration and linkage in the high income and SMEs segments, developing improvements in key products and measures to enhance the quality of service. This is increasing linkage and the profitability of these clients.

The bank renewed its customer relationship model (CRM) in order to improve the attention given to individuals and SMEs in branches and implemented new Mobile Banking functions.

Uruguay

Attributable profit was EUR 14 million in the third quarter, 13.4% more in local currency than in the second quarter. Profit in the first nine months was EUR 42 million (+16.3%y-o-y). Gross income rose 12.5% and personnel and general costs 6.6% (below inflation).

The Group maintained its leadership in Uruguay. Santander is the largest private sector bank in the country, with a market share in lending of 18.0% and 16.2% in deposits. The consumer finance company Creditel is the best positioned and with the highest brand awareness. Overall, the Group has 83 branches and 274,000 customers.

The economy grew at an annual rate of 5.6% in the second quarter. Inflation remained high at around than 9%, well above the target range of 4%-6%. As a result, new monetary policy measures were taken in the third quarter via control of monetary aggregates, which replaced the monetary policy interest rate and produced a sharp contraction in the peso market, with high volatility and hikes in interest rates.

Total lending in the country grew 16% and deposits increased 11%. The respective growth rates for the bank were in line with the system’s in loans and higher in deposits (+12%).

The Group continued to develop retail banking, focusing on means of payment and products for SMEs. The strategy in corporate banking was to maintain a close and efficient service for clients. This strengthened the main pillars of management: generation of recurring results; customer business; improvement in efficiency (-3 p.p.) and optimization of spending. Retail banking loans rose 20% and retail deposits accounted for 75% of the bank’s funding. Fee-generating businesses continued to grow; income from foreign trade services, insurance and custody rose by more than 20%, and the total fee income increased 15.7% year-on-year.

Retail banking focused on providing a differentiated service for each customer segment. The bank is developing a customer attention model centred on the quality of service, continuous improvement and operational excellence.

The efficiency ratio was 63.1% and the recurrence ratio 35.8%. The quality of the lending portfolio remains excellent. The NPL ratio is very low at 0.96% and coverage very high at 266%.

ATTRIBUTABLE PROFIT. ARGENTINA

Constant EUR Million

(*) In euros: +10.4%

ATTRIBUTABLE PROFIT. URUGUAY

Constant EUR Million

(*) In euros: +2.1%

49 JANUARY - SEPTEMBER

INFORMATION BY PRINCIPAL SEGMENTS FINANCIAL REPORT 2013

Puerto Rico

Attributable profit in the third quarter was EUR 12 million and EUR 64 million in the first nine months (+69.8% year-on-year in local currency). This increase was mainly due to the strategy of reducing the cost of funds (including customer deposits), the good evolution of loan-loss provisions and a positive tax impact.

Santander Puerto Rico has 115 branches, 412,000 customers and market shares of 11.1% in loans, 13.6% in deposits and 21.2% in mutual funds.

The index of economic activity, which measures the monthly evolution based on four indicators, (employment, sale of cement, gasoline consumption, and electric power generation) dropped 5% in July for the eighth consecutive month. However, the revenue of the General Fund began to increase because of the recently approved tax reform which includes a rise in the tax rate from 30% to 39%, an expansion on the base of the sales tax and a new gross receipts tax of 1% for financial institutions.

In this environment, the bank concentrated on selective growth strategies. Of note: 12% year-on-year increase in credit cards, backed by “Santander JetBlue” with more than 20,000 cards issued; the “Select” customer attention model, recently launched that shows positive initial results and companies continuing to strengthen their customer base and boosting their volumes of transactions. Meanwhile, the focus on customer linkage and improving their satisfaction was maintained.

Total lending increased 2%, due to a sharp rise in commercial and consumer credit (+25% and +4%, respectively), which offset the strategy of reducing mortgage lending. Deposits grew 3% (demand deposits: +4%). The loan-to-deposit ratio was 106% at the end of September.

The efficiency ratio was 56.8% and the recurrence ratio 39.6%. The trend of credit risk indicators continued to be positive.

The NPL ratio was 6.33% and coverage 62% (improvements of 213 b.p. and 237 p.p., respectively, over September 2012), due to the restructuring of loan portfolios and the positive performance of the commercial portfolio.

Peru

Net profit was EUR 5 million in the third quarter and EUR 14 million in the first nine months (+25.1% y-o-y in local currency).

Gross income was 40.2% higher spurred by business growth, and costs increased 51.0%, following the start up of a new auto finance company. Excluding the impact of this new business, gross income increased 34%, costs 17% and net profit 32%.

The economy expanded 5.1% in the first half of 2013, a slower pace due to the fall in the price of metals and the lower external demand.

The annual rate of inflation was 2.8% in September and the central bank held its benchmark rate at 4.25%, but has been adopting measures to reduce and make more flexible the cash reserve requirements to promote greater liquidity.

The sol depreciated 1.4% against the euro in the third quarter (9.6% in the first nine months). Public debt was 18% of GDP, one of the lowest levels in the region, and currency reserves were $67,200 million (more than 30% of GDP).

Santander focuses on companies and the Group’s global clients. It strives for a close relationship with customers, offering a quick and quality service and taking advantage of the synergies with the Group’s other units. Lending rose 29% and deposits were stable in the last 12 months.

At the end of 2012, Santander launched an auto finance entity in Peru together with a leading international partner with a lot of experience in Latin America. The company has a specialized business model that operates with all brands and auto dealers in the country. At the end of September, it had granted more than 2,500 loans.

The efficiency ratio was 34.8%, the NPL ratio remained low (0.15%) and coverage remained very high (1,306%).

ATTRIBUTABLE PROFIT. PUERTO RICO

Constant EUR Million

(*) In euros: -65.3%

ATTRIBUTABLE PROFIT. PERU

Constant EUR Million

(*) In euros: +0.9%

JANUARY - SEPTEMBER 50

FINANCIAL REPORT 2013 INFORMATION BY PRINCIPAL SEGMENTS

UNITED STATES (EUR Million)

				Var. o/ 2Q’13									Var. o/ 9M’12
	3Q’13			(%)			(%) w/o FX			9M’13			(%)			(%) w/o FX
INCOME STATEMENT
Net interest income		347			(3.7	)		(2.2	)		1,074			(16.6	)		(14.2	)
Net fees		98			(0.8	)		0.6			290			0.8			3.7
Gains (losses) on financial transactions		(8	)		—			—			58			(68.7	)		(67.8	)
Other operating income (1)		72			(0.9	)		0.9			244			8.9			12.1
Gross income		509			(7.4	)		(5.9	)		1,666			(16.1	)		(13.7	)
Operating expenses		(328	)		9.7			11.2			(924	)		5.0			8.0
General administrative expenses		(284	)		9.0			10.5			(805	)		4.3			7.2
Personnel		(160	)		6.7			8.2			(458	)		7.6			10.7
Other general administrative expenses		(123	)		12.1			13.6			(346	)		0.1			3.0
Depreciation and amortisation		(44	)		14.6			16.1			(119	)		10.3			13.5
Net operating income		181			(27.8	)		(26.4	)		742			(32.8	)		(30.9	)
Net loan-loss provisions		13			—			—			(19	)		(90.7	)		(90.4	)
Other income		(27	)		193.5			196.3			(45	)		(76.2	)		(75.5	)
Profit before taxes		167			(29.4	)		(28.1	)		679			(5.1	)		(2.3	)
Tax on profit		(3	)		(94.2	)		(93.6	)		(92	)		(32.1	)		(30.2	)
Profit from continuing operations		164			(13.9	)		(12.3	)		587			1.3			4.2
Net profit from discontinued operations		—			—			—			—			—			—
Consolidated profit		164			(13.9	)		(12.3	)		587			1.3			4.2
Minority interests		—			—			—			—			—			—
Attributable profit to the Group		164			(13.9	)		(12.3	)		587			1.3			4.2
BALANCE SHEET
Customer loans (2)		38,184			(3.8	)		(0.7	)		38,184			(8.8	)		(4.7	)
Trading portfolio (w/o loans)		144			(12.9	)		(10.1	)		144			(53.9	)		(51.8	)
Available-for-sale financial assets		8,921			(19.9	)		(17.3	)		8,921			(36.1	)		(33.3	)
Due from credit institutions (2)		466			17.3			21.1			466			(24.2	)		(20.8	)
Intangible assets and property and equipment		558			0.6			3.9			558			5.0			9.7
Other assets		7,012			5.7			9.2			7,012			9.7			14.5
Total assets/liabilities & shareholders’ equity		55,286			(5.6	)		(2.5	)		55,286			(13.2	)		(9.3	)
Customer deposits (2)		36,181			(3.8	)		(0.7	)		36,181			(5.9	)		(1.7	)
Marketable debt securities (2)		1,167			41.8			46.4			1,167			39.3			45.5
Subordinated debt (2)		1,761			(2.9	)		0.2			1,761			(29.7	)		(26.6	)
Insurance liabilities		—			—			—			—			—			—
Due to credit institutions (2)		8,451			(18.4	)		(15.7	)		8,451			(39.4	)		(36.7	)
Other liabilities		1,934			(2.5	)		0.7			1,934			(26.8	)		(23.6	)
Shareholders’ equity (3)		5,793			(3.1	)		0.0			5,793			9.6			14.5
Other customer funds under management		—			—			—			—			(100.0	)		(100.0	)
Mutual and pension funds		—			—			—			—			—			—
Managed portfolios		—			—			—			—			(100.0	)		(100.0	)
Customer funds under management		39,109			(2.8	)		0.3			39,109			(6.4	)		(2.3	)
RATIOS (%) AND OPERATING MEANS
ROE		11.12			(1.51	p.)					13.35			(1.45	p.)
Efficiency ratio (with amortisations)		64.5			10.0	p.					55.5			11.1	p.
NPL ratio		2.26			0.04	p.					2.26			(0.05	p.)
NPL coverage		96.6			(6.2	p.)					96.6			(13.1	p.)
Number of employees		9,571			1.1						9,571			1.3
Number of branches		706			(1.8	)					706			(2.2	)

(1).- Including dividends, income from equity-accounted method and other operating income/expenses

(2).- Including all on-balance sheet balances for this item

(3).- Not including profit of the year

NET OPERATING INCOME

Constant EUR Million

(*) In euros: -27.8%

ATTRIBUTABLE PROFIT

Constant EUR Million

(*) In euros: -13.9%

51 JANUARY - SEPTEMBER

INFORMATION BY PRINCIPAL SEGMENTS FINANCIAL REPORT 2013

United States

u On October 17, Sovereign Bank, N.A. changed its name to Santander Bank, N.A., completing the change of brand process and taking an essential step forward in developing the Santander model in the US.

u Attributable profit of $217 million in the third quarter, 12.3% lower than the second quarter.

• Santander Bank impacted by lower volumes and sale of ALCO portfolios, partly offset by provisions recovery.

• SCUSA contributed $97 million to the Group’s profit.

u Attributable profit in the first nine months of $772 million (+4.2%).

• Santander Bank’s net operating income was lower because of the impact of the sale of portfolios and higher costs from the development of new businesses. These effects were offset by reduced provisions and writedowns.

• SCUSA increased its contribution by 4.2% to $346 million.

u The franchise’s commercial transformation began to be reflected in growth in lending and deposits from companies segments.

u NPL ratio (2.26%) and coverage (97%) underscored the high credit quality.

The perimeter of Santander US corresponds to Santander Holdings USA (SHUSA), a bank holding company with two distinct lines of business: commercial banking, via its subsidiary Santander Bank (former Sovereign Bank), and consumer finance business through its stake in Santander Consumer USA Inc. (SCUSA), recorded by the equity accounted method.

Santander Bank is a national bank with a strong presence in the northeast, one of the country’s most prosperous areas. It has 706 branches, 2,100 ATMs and 1.7 million customer-households. Its business model is focused on retail customers and companies.

SCUSA, based in Dallas, specialises in consumer finance, mainly auto finance in the non-prime segment.

Economic environment

Business was conducted in an environment of moderate growth. The Federal Reserve (Fed) held its short-term interest rates. A debate on possibly withdrawing the unconventional stimulus was opened.

The rise in long-term interest rates produced a significant fall in mortgages origination.

Loans by banks to companies increased 2.0% in the second quarter over the first quarter. Real estate remained virtually flat. Consumer credit rose 1.4%. Deposits were down 0.3% over the first quarter.

In auto finance, consumers continued to buy new and used cars, with prices at historically high levels. As well as these positive conditions, the liquidity scenario in the securitisations market was good.

Strategy

Sovereign Bank, N.A. changed its name to Santander Bank, N.A. The Santander brand will help to change the perception from a regional to a global bank, resulting in increased sales capacities particularly in segments such as large companies.

The greater focus of Santander Bank on commercial activity resulted in a reorganization of the business areas in the third quarter, giving greater visibility to key areas for the development of businesses such as Investments, Auto Finance and Specialties (niche business).

SCUSA’s strategy is to continue to strengthen its auto finance franchise on several fronts such as organic growth, strategic alliances (e.g. Chrysler), growth in the platform of direct credits to clients via Internet (Roadloans.com) and the opportunities of expansion offered by the efficient turnkey operation of portfolio servicing to other companies.

Backed by these strengths, SCUSA began to develop diversification initiatives through agreements with Bluestem and Lending Club which enabled it to begin growth in consumer credits without guarantee.

Activity

Measures adopted in recent months included the agreement with Chrysler which boosts SCUSA’s auto finance and enabled Santander Bank to enter the Dealer Floor Plan, establishing the auto finance division to manage this operation.

The greater co-operation between GBM and the Large Companies Area is improving the offer of products and services by taking advantage of the GBM platform. New lending for GBM as a whole was 16% higher, and deposits from Large Companies 27% in the year-to-date.

SANTANDER BANK. INCOME STATEMENT (US$ Million)

	3Q’13		2Q’13		Var.(%)			9M’13		9M’12		Var.(%)
Gross income		579		616		(6.1	)		1,851		2,207		(16.1	)
Net operating income		144		226		(36.0	)		634		1,084		(41.5	)
Attributable profit to the Group		120		146		(17.6	)		427		410		4.1

JANUARY - SEPTEMBER 52

FINANCIAL REPORT 2013 INFORMATION BY PRINCIPAL SEGMENTS

ACTIVITY

% var. Sep’13 / Sep’12 (constant EUR)

GROSS INCOME

Constant EUR Million

(*) In euros: -7.4%

In July, Santander Bank bought back from FNMA a portfolio of multifamily loans of high quality which were already served by the bank. This, coupled with growth in commercial and industrial loans was reflected in a 2% year-on-year increase in this type of credit. Exposure to real estate was cut by 6%.

This evolution, however, was not reflected in the bank’s total lending, which was 5% lower in dollar terms year-on-year, due to the fall in portfolios in run off and the strategy followed in the mortgage segment, consisting of origination of mortgages for their subsequent sale.

The improvement in the portfolio’s composition, combined with strict risk management, produced a further decline in the NPL ratio to 2.26% and maintained coverage of around 97%.

Total deposits were 2% lower year-on-year, because of reduced balances of term deposits, in line with the policy to improve the financial cost. Demand deposits, on the other hand, rose 7%.

Positive evolution in the retail segment of growth in new deposits (+2% year-on-year). This growth came from core deposits (+9%), as time deposits fell. In the corporate segment, deposits increased 8% over September 2012 also because of low cost deposits.

The focus on capturing lower cost deposits together with the management of issues and wholesale funding enabled the cost of funding to improve.

As regards investment portfolios, and on the basis of a new interest rate environment, positions with a greater exposure to interest rate changes were sold. This impacted net interest income and trading gains.

As for SCUSA, the agreement in February with Chrysler Group and the positive evolution of the auto finance market continued to spur the origination of new lending.

Other alliances this year enabled SCUSA to begin offering personal loans and credit cards, in line with its strategic plan.

SCUSA’s new lending was more than double that in 2012.

Results

The group’s gross income was 5.9% lower in the third quarter than in the second. This was due to the lower contribution of Santander Bank, mainly because of the fall in trading gains and lower net interest income as a result of pressure on volumes and the sale of ALCO portfolios.

Expenses rose in the third quarter, partly due to non-recurring expenses from the development of the franchise (e.g. rebranding, depreciation, etc.). Additionally provisions were recovered in the quarter.

SCUSA reflects business seasonality and the greater initial requirement in constituting provisions derived from the faster pace of new lending in the past few quarters.

Attributable profit was $217 million in the third quarter, 12.3% less than in the second quarter.

Profit for the first nine months was $772 million, 4.2% higher than the same period of 2012. This was due to the negative impact in 2012 of the charge made for the Trust Piers issue.

Eliminating this, attributable profit was 11% lower as a result of the sale of investment portfolios as well as revenues that continued to be affected by market conditions and costs that still reflect the investments made to develop the franchise. These effects were partly offset by lower provisions.

These results include a contribution of SCUSA of $346 million, 4.2% higher year-on-year. SCUSA maintains a solid trend in volumes growth, partly from the agreement with Chrysler, which are not yet feeding through to profits because of the higher provisions for new lending.

SCUSA. CONTRIBUTION TO THE GROUP

Constant EUR Million

(*) In euros: -6.6%

53 JANUARY - SEPTEMBER

INFORMATION BY PRINCIPAL SEGMENTS FINANCIAL REPORT 2013

CORPORATE ACTIVITIES (EUR Million)

	3Q’13			2Q’13			Var. (%)			9M’13			9M’12			Var. (%)
INCOME STATEMENT
Net interest income		(526	)		(509	)		3.3			(1,615	)		(1,414	)		14.2
Net fees		(19	)		(20	)		(1.7	)		(52	)		(25	)		105.9
Gains (losses) on financial transactions		330			359			(8.2	)		920			515			78.7
Other operating income		47			28			67.3			110			135			(18.8	)
Dividends		23			4			436.1			31			45			(30.0	)
Income from equity-accounted method		(4	)		(2	)		175.9			(8	)		(2	)		332.9
Other operating income/expenses		28			25			11.8			86			92			(6.5	)
Gross income		(168	)		(141	)		18.9			(638	)		(789	)		(19.2	)
Operating expenses		(170	)		(177	)		(4.2	)		(526	)		(476	)		10.6
General administrative expenses		(154	)		(134	)		15.4			(448	)		(374	)		19.7
Personnel		(35	)		(60	)		(41.7	)		(160	)		(143	)		12.0
Other general administrative expenses		(119	)		(73	)		62.3			(287	)		(231	)		24.4
Depreciation and amortisation		(16	)		(44	)		(63.5	)		(78	)		(101	)		(22.9	)
Net operating income		(338	)		(319	)		6.1			(1,164	)		(1,265	)		(8.0	)
Net loan-loss provisions		14			(189	)		—			(203	)		(31	)		560.1
Other income		(124	)		(89	)		39.0			(279	)		(116	)		140.1
Ordinary profit before taxes		(447	)		(596	)		(25.0	)		(1,646	)		(1,412	)		16.5
Tax on profit		24			73			(68.0	)		151			(93	)		—
Ordinary profit from continuing operations		(424	)		(523	)		(18.9	)		(1,494	)		(1,505	)		(0.7	)
Net profit from discontinued operations		—			—			—			—			0			(100.0	)
Ordinary consolidated profit		(424	)		(523	)		(18.9	)		(1,494	)		(1,505	)		(0.7	)
Minority interests		(2	)		(2	)		14.4			(4	)		0			—
Ordinary attributable profit to the Group		(422	)		(521	)		(19.0	)		(1,491	)		(1,505	)		(1.0	)
Net capital gains and provisions		—			—			—			—			927			(100.0	)
Attributable profit to the Group		(422	)		(521	)		(19.0	)		(1,491	)		(579	)		157.5
BALANCE SHEET
Trading portfolio (w/o loans)		4,772			5,291			(9.8	)		4,772			9,940			(52.0	)
Available-for-sale financial assets		18,590			22,421			(17.1	)		18,590			6,337			193.4
Investments		237			206			15.2			237			76			210.4
Goodwill		23,729			23,878			(0.6	)		23,729			25,178			(5.8	)
Liquidity lent to the Group		23,862			30,515			(21.8	)		23,862			47,793			(50.1	)
Capital assigned to Group areas		70,193			72,619			(3.3	)		70,193			70,602			(0.6	)
Other assets		62,816			58,275			7.8			62,816			91,513			(31.4	)
Total assets/liabilities & shareholders’ equity		204,200			213,205			(4.2	)		204,200			251,439			(18.8	)
Customer deposits (1)		4,916			5,978			(17.8	)		4,916			3,150			56.0
Marketable debt securities (1)		69,149			74,891			(7.7	)		69,149			81,730			(15.4	)
Subordinated debt (1)		4,593			4,412			4.1			4,593			4,889			(6.0	)
Other liabilities		44,677			46,976			(4.9	)		44,677			81,859			(45.4	)
Group capital and reserves (2)		80,866			80,947			(0.1	)		80,866			79,811			1.3
Other customer funds under management		—			—			—			—			—			—
Mutual and pension funds		—			—			—			—			—			—
Managed portfolios		—			—			—			—			—			—
Customer funds under management		78,657			85,281			(7.8	)		78,657			89,769			(12.4	)
OPERATING MEANS
Number of employees		2,490			2,544			(2.1	)		2,490			2,377			4.8

(1).- Including all on-balance sheet balances for this item

(2).- Not including profit of the year

JANUARY - SEPTEMBER 54

FINANCIAL REPORT 2013 INFORMATION BY PRINCIPAL SEGMENTS

Corporate Activities

u Corporate Activities registered a loss of EUR 422 million in the third quarter compared to one of EUR 521 million in the second quarter when a provisions charge was made for the integration process in Spain

u The loss for the first nine months was EUR 1,491 million, similar to that of the same period of 2012 before net capital gains.

Corporate activities posted a loss of EUR 1,491 million in the first nine months, compared to one of EUR 1,505 million in the same period of 2012, before the extraordinary capital gains from the sale of the unit in Colombia and the insurance operation in Spain and Portugal.

Within Corporate Activities, the financial management area conducts the global functions of balance sheet management, both structural interest rate and liquidity risk (the latter via issues and securitizations), as well as the structural position of exchange rates:

• Interest rate risk is actively managed by taking market positions. This management seeks to soften the impact of interest rate changes on net interest income, and is done via bonds and derivatives of high credit quality and liquidity, and low consumption of capital.

• The purpose of structural liquidity management is to finance the Group’s recurring activity in optimum conditions of maturity and cost, maintaining an appropriate profile (in volumes and maturities) by diversifying the sources.

• Management of the exposure to exchange-rate movements is also carried out on a centralized basis. This management (which is dynamic) is conducted through exchange-rate derivatives, optimizing at all times the financial cost of hedging.

Hedging of net investments in the capital of businesses abroad aims to neutralize the impact on capital of converting into euros the balances of the main institutions that are consolidated whose currency is not the euro. The Group believes it is necessary to immunize the impact, which, in situations of high volatility in the markets, sudden changes in interest rates would have on these exposures of a permanent nature. The investments that are currently hedged are those in Brazil, the UK, Mexico, Chile, USA and Poland and the instruments used are spot, FX forwards or tunnel options. EUR 22,165 million are currently hedged.

Exposures of a temporary nature — those regarding results that the Group’s units will contribute in the next 12 months in non-euro currencies — are also actively managed on a centralized basis, in order to limit the volatility in euros.

Meanwhile and separately from the financial management described here, Corporate Activities manages all capital and reserves and allocations of capital to each of the units, as well as providing the liquidity that some of the business units might need. The price at which these operations are carried out is the market rate (euribor or swap) plus the risk premium, which in concept of liquidity, the Group supports for immobilizing the funds during the life of the operation.

Lastly, and more marginally, the equity stakes of a financial nature that the Group takes within its policy of optimizing investments are reflected in Corporate Activities.

The main developments were:

• Net interest income was EUR 526 million negative in the third quarter compared to EUR 520 million also negative in the same period of 2012 and EUR 509 million in the second quarter of 2013. This amount incorporates the cost associated with the policy of strengthening liquidity that the Group has been implementing since the middle of 2012, and which, combined with the current low level of market interest rates, has caused net interest income to deteriorate temporarily. It also includes the cost of credit of issues in wholesale markets, which was partly absorbed by lower recourse to these markets (directly related to the lower funding needs from the gap between customer lending and deposits)

• Gains on financial transaction, which are mainly those from the centralized management of interest rates and currency risk of the parent bank and from equities, were EUR 920 million positive in the first nine months, compared to EUR 515 million also positive in the same period of 2012.

• Operating expenses in the third quarter were virtually unchanged from the first and second quarters. Costs for the first nine months were higher largely because of general expenses (partly linked to higher indirect taxes).

• Net loan-loss provisions were EUR 14 million, much lower than in the second quarter (EUR 189 million) which incorporated a charge related to the integration in Spain, as the Santander and Banesto loan portfolios were homogenized to the most conservative criteria. Including the charge, provisions in the first nine months were EUR 203 million compared to EUR 31 million in the same period of 2012.

• Other income in the third quarter, which includes provisions and writedowns, was EUR 279 million negative compared to EUR 116 million also negative in the third quarter of 2012. This difference was basically due to a temporary mismatch of the various provisions and writedowns, which were anticipated at the consolidated level and are not recorded in the results of the different units until they materialise.

• Lastly, the tax line records a recovery of EUR 151 million in the first nine months compared to a charge of EUR 93 million in the same period of 2012, as a result of adjustments in the consolidation process.

55 JANUARY - SEPTEMBER

INFORMATION BY SECONDARY SEGMENTS FINANCIAL REPORT 2013

Retail Banking

u Attributable profit of EUR 1,316 million in the third quarter, 4.1% higher than in the second quarter (+8.7% excluding exchange rate impact).

• Lower gross income (-1.8%) because of trading gains and stable net interest income.

• Lower loan-loss provisions.

u Attributable profit of EUR 3,937 million in the first nine months (-14.0% year-on-year) and -9.9% excluding exchange rate impact.

• Lower gross income in an environment of reduced activity and low interest rates.

• Partially offset with lower provisions.

u Loans and deposits remained unchanged in the quarter. In year-on-year terms, loans were 2% lower and deposits 5% higher.

Retail banking accounted for 85% of the Group’s operating areas gross income and 74% of attributable profit in the first nine months.

Strategy

The retail banking division was recently created in order to drive profitable and recurring growth of this business. Management is customer-focused, enabling us to take better advantage of the opportunities of the Group’s international position. The division aims to:

• Define a strategy and a global business model for each customer segment of retail banking.

• Take advantage of synergies and best practices, both in business in the proper sense of the word (customer segments, banking products, distribution models, etc.), as well as in support functions (technology, risks, etc.).

• Consolidate Grupo Santander as one of the main references internationally on the basis of profitable retail banking business and centred on managing customers.

Of note among the plans and initiatives for the various segments is that the bank continues to strengthen the high-income segments with “Santander Select”. Following the success in Spain, “Select” began to be installed in Mexico, Chile and most recently in Brazil. The opening of specialized branches and a range of products designed for this segment are some of its elements. Other countries will be incorporated to “Santander Select” in the coming months.

The firm and global support for SMEs, through the strategy of increasing our penetration and market share in this segment, produced various initiatives including the “Plan 10.000” in Spain, “Breakthrough” in the UK and “Santander Pymes” (SMEs) in Latin America.

In the US, the franchise brand was changed from Sovereign to Santander, with a modernization of the branches that will increase the quality of customer service and better exploit the advantages of Santander’s global presence and recognition.

Of note in means of payment was the investment in the Swedish company iZettle, the precursor in Europe of accepting payments via smartphones and tablets, and in Brazil the acquisition of the GetNet operations, one of the largest companies for the technological development of electronic transactions, in order to step up the bank’s presence in the market for processing card payments.

RETAIL BANKING (EUR Million)

				Var. o/ 2Q’13									Var. o/ 9M’12
	3Q’13			(%)			(%) w/o FX			9M’13			(%)			(%) w/o FX
INCOME STATEMENT
Net interest income		6,237			(5.2	)		0.3			19,365			(12.3	)		(6.7	)
Net fees		1,978			(6.9	)		(2.2	)		6,199			(2.7	)		2.8
Gains (losses) on financial transactions		221			(36.8	)		(33.3	)		948			7.0			14.7
Other operating income (1)		(21	)		—			—			(24	)		(73.4	)		(69.1	)
Gross income		8,415			(7.1	)		(1.8	)		26,488			(9.4	)		(3.8	)
Operating expenses		(4,137	)		(2.7	)		1.9			(12,653	)		(1.6	)		3.9
Net operating income		4,278			(10.9	)		(5.2	)		13,836			(15.6	)		(9.9	)
Net loan-loss provisions		(2,072	)		(22.5	)		(16.2	)		(7,359	)		(17.4	)		(11.3	)
Other income		(272	)		(14.0	)		(9.7	)		(757	)		(35.1	)		(28.8	)
Ordinary profit before taxes		1,934			6.7			11.8			5,720			(9.5	)		(4.5	)
Tax on profit		(426	)		25.0			30.8			(1,148	)		(16.8	)		(11.3	)
Ordinary profit from continuing operations		1,508			2.4			7.4			4,571			(7.4	)		(2.6	)
Net profit from discontinued operations		(0	)		(97.0	)		(96.8	)		(14	)		—			—
Ordinary consolidated profit		1,507			3.4			8.4			4,557			(8.6	)		(3.9	)
Minority interests		191			(1.3	)		6.1			620			26.1			37.8
Ordinary attributable profit to the Group		1,316			4.1			8.7			3,937			(12.4	)		(8.2	)
Net capital gains and provisions		—			—			—			—			(100.0	)		(100.0	)
Attributable profit to the Group		1,316			4.1			8.7			3,937			(14.0	)		(9.9	)
BUSINESS VOLUMES
Customer loans		594,019			(1.1	)		(1.2	)		594,019			(6.6	)		(2.6	)
Customer deposits		549,621			(0.4	)		(0.2	)		549,621			2.8			7.4

(1).- Including dividends, income from equity-accounted method and other operating income/expenses

JANUARY - SEPTEMBER 56

FINANCIAL REPORT 2013 INFORMATION BY PRINCIPAL SEGMENTS

RETAIL BANKING. INCOME STATEMENT (EUR Million)

	Net operating income																Attributable profit to the Group
			o/ 2Q’13								o/ 9M’12								o/ 2Q’13								o/ 9M’12
	3Q’13		(%)			(%) w/o FX			9M’13		(%)			(%) w/o FX			3Q’13		(%)			(%) w/o FX			9M’13		(%)			(%) w/o FX
Continental Europe		1,210		(5.8	)		(5.5	)		3,558		(12.5	)		(12.4	)		426		73.0			74.0			924		(11.5	)		(11.4	)
o/w: Spain		499		(16.4	)		(16.4	)		1,543		(26.1	)		(26.1	)		118		—			—			124		(58.8	)		(58.8	)
Portugal		69		(1.3	)		(1.3	)		196		(41.4	)		(41.4	)		14		—			—			3		(84.6	)		(84.6	)
Poland		187		4.8			6.0			510		67.5			67.3			86		14.0			15.2			221		27.1			26.9
SCF		456		5.2			5.2			1,315		(2.6	)		(2.6	)		208		3.8			3.8			585		4.1			4.1
United Kingdom*		495		(8.4	)		(8.0	)		1,456		3.5			8.7			251		6.4			6.9			667		18.7			24.6
Latin America		2,408		(12.9	)		(3.2	)		8,162		(17.5	)		(8.8	)		490		(20.7	)		(12.7	)		1,819		(23.0	)		(17.3	)
o/w: Brazil		1,544		(17.7	)		(6.1	)		5,576		(24.0	)		(13.8	)		180		(31.4	)		(19.7	)		788		(28.6	)		(19.0	)
Mexico		357		(10.2	)		(5.5	)		1,115		11.9			10.2			122		(22.0	)		(17.1	)		456		(28.2	)		(29.3	)
Chile		298		9.6			15.8			840		(2.3	)		0.2			90		26.3			32.7			235		(10.4	)		(8.1	)
USA		165		(23.0	)		(21.5	)		660		(35.5	)		(33.7	)		150		(9.2	)		(7.6	)		526		(0.4	)		2.5
Total Retail Banking*		4,278		(10.9	)		(5.2	)		13,836		(15.6	)		(9.9	)		1,316		4.1			8.7			3,937		(12.4	)		(8.2	)

(*).- Excluding net capital gains and provisions

Results and activity

Attributable profit in the third quarter was EUR 1,316 million, 4.1% higher than in the second quarter, (+8.7%, excluding exchange rate impact).

This was due to the drop in provisions, mostly because of Spain’s and Brazil’s evolution.

In the third quarter over the second, Continental Europe’s attributable profit rose 73.0% because of lower provisions, the UK’s grew 6.9% in sterling, backed by the good evolution of net interest income and costs, Latin America’s declined 12.7% in constant currency, due to greater taxes and minority interests, as profit before tax was virtually unchanged, and the US’s declined 7.6% because of lower trading gains and higher costs.

Profits fell 14.0% year-on-year (-9.9% in constant currency) in the first nine months. This evolution was determined by the 6.7% reduction in net interest income, reflecting the environment of lower growth, low interest rates, the Group’s strategy of focusing on liquidity and balance sheet strength, and the strategy of change of mix toward products of lower risk. Fee income and trading gains performed better, limiting the fall in gross income to 3.8%.

Operating expenses increased in line with inflation and provisions were lower than in the first nine months of 2012. Pre-tax profit was 9.5% lower (-4.5% in constant currency).

After tax, discontinued operations (cards in the UK) and higher minority interests in Poland and Mexico, attributable profit was 14.0% lower (-9.9% in constant currency).

Profit was 6 p.p. negatively affected by the perimeter effect.

As regards activity (in constant currency), customer lending and deposits without repos (including retail commercial paper in Spain and “letras financieras” in Brazil) were 1% lower.

On a year-on-year comparison and constant currency, lending dropped 2%, with a varied performance by market. Lending in mature markets fell 5%, while in emerging markets it rose 13%, partly due to the perimeter effect from Poland. Growth in deposits without repos was 5%, favourably impacted by strong capturing of funds in Spain.

Global Private Banking includes institutions that specialize in financial advice and asset management for high-income clients: Santander Private Banking in Latin America and Italy and the private banking units in Spain, Portugal, Brazil, Mexico and Chile, jointly managed with local retail banks.

In 2013 business is being developed in a complex environment, somewhat better in the economic and financial spheres (less volatility in markets, better performance of those at the world level), but tougher requirements in the regulatory sphere.

Of note in this sphere were the measures put into effect in the main markets (MIFID II in Europe, FATCA and Dodd-Frank in the US, Retail Distribution Review in the UK), as part of moves to achieve a better adjustment of activity to the client’s investor profile and greater control of money-laundering, among others. All of this requires more investments in the compliance and risk management areas.

In the first nine months, the Global Private Banking division levered up its commercial effectiveness and in more stable markets, increasing the volume of assets under management by 10% over the end of 2012.

This greater activity produced a solid rise in gross income (+4% year-on-year in constant euros).

Meanwhile, the area is incorporating the required regulatory developments and extending them to the countries where the Group operates. Costs remain flat, differentiating us from our peers. Control of costs, combined with growth in gross income, brought the efficiency ratio to below 50%, a reference for the sector.

The Private Banking units in Spain, Portugal and Chile received the Euromoney awards for the best private bank in 2013 in each of these countries.

57 JANUARY - SEPTEMBER

INFORMATION BY SECONDARY SEGMENTS FINANCIAL REPORT 2013

Global Wholesale Banking

u Attributable profit of EUR 245 million in the third quarter, 36.3% lower than the second quarter because of higher provisions that offset the rise in gross income (+8.1%).

u Attributable profit for the first nine months of EUR 1,110 million (-25.4% year-on-year).

• Higher gross income (+3.0% without the exchange rate impact).

• Higher provisions for Spain and Mexico.

u Focus on customer business (87% gross income), efficiency ratio (33.6%, a benchmark for the sector) and on active management of risks, liquidity and capital (range of products adapted).

Santander Global Banking & Markets (SGB&M) contributed 13% of the operating areas’ gross income and 21% of attributable profit, in the first nine months.

Strategy

SGB&M continued to strengthen the pillars of its business model, focused on the corporate client, the global reach of the division and its interconnection with local units, together with active management of risk, capital and liquidity that has made it adapt its range of products to the market’s new conditions.

SGB&M continued to accompany the Group in its international development in Poland and in the building of franchises in the northeast of the US, and the UK. It also continued to invest in operating capacities and in the distribution of transaction and treasury products, particularly exchange rates and fixed income. Its efficiency ratio of 33.6% at September 2013 remained a benchmark for the sector.

Results and activity

Attributable profit was EUR 245 million in the third quarter, 36.3% less than the second quarter. The 8.1% growth in gross income (backed by activity in the markets) and the 1.8% drop in costs spurred double-digit growth in net operating income (+13.8%) over the second quarter. Higher provisions for loan losses, mainly in Spain and Mexico, however, offset this trend.

Attributable profit was EUR 1,110 million in the first nine months, 25.4% less than in the same period of 2012 (-21.5% excluding the exchange-rate impact).

Gross income dropped 1.9% year-on-year (-7.7% in the first half), affected by the depreciation of Latin American currencies. Excluding this impact, growth would have been 3.0%. The strength of revenues combined with controlled costs produced net operating income 3.3% higher without the exchange-rate impact.

Higher loan loss provisions, basically for Spain and Mexico, and increased minority interests in Latin American units, reduced attributable profit.

The trend in gross income was supported by the strength and diversification of client revenues, which accounted for 87% of the area’s total, with similar performance (-4.3% year-on-year; -1.1% excluding exchange rate impact). Customer revenues generated by the Global Customer Relationship model were 5% lower.

By geographic areas, of note was year-on-year growth in client revenues in the US (+9%), Portugal (+9%) and Latin America (+12%), backed more by Brazil and the smaller countries, which was offset by the declines in Spain (-4%) and, above all, the UK (-26%). The recovery of the latter two in the third quarter pushed gross income (+12.8% over the second quarter, excluding fx impact).

GLOBAL WHOLESALE BANKING (EUR Million)

				Var. o/ 2Q’13									Var. o/ 9M’12
	3Q’13			(%)			(%) w/o FX			9M’13			(%)			(%) w/o FX
INCOME STATEMENT
Net interest income		554			(9.8	)		(4.6	)		1,799			(10.7	)		(5.9	)
Net fees		283			(14.9	)		(10.5	)		953			(8.7	)		(5.0	)
Gains (losses) on financial transactions		440			159.8			169.2			966			36.2			44.8
Other operating income (1)		42			(59.8	)		(59.6	)		199			(11.1	)		(10.5	)
Gross income		1,319			8.1			13.0			3,918			(1.9	)		3.0
Operating expenses		(435	)		(1.8	)		1.7			(1,315	)		(1.6	)		2.4
Net operating income		884			13.8			19.4			2,603			(2.0	)		3.3
Net loan-loss provisions		(475	)		208.1			214.5			(792	)		140.0			144.2
Other income		(8	)		(30.6	)		(30.4	)		(38	)		33.7			34.8
Profit before taxes		401			(34.4	)		(29.0	)		1,773			(22.8	)		(18.2	)
Tax on profit		(105	)		(37.3	)		(31.5	)		(490	)		(25.1	)		(20.5	)
Profit from continuing operations		296			(33.3	)		(28.0	)		1,283			(21.9	)		(17.3	)
Net profit from discontinued operations		—			—			—			—			—			—
Consolidated profit		296			(33.3	)		(28.0	)		1,283			(21.9	)		(17.3	)
Minority interests		51			(13.8	)		(4.4	)		173			12.8			25.2
Attributable profit to the Group		245			(36.3	)		(31.6	)		1,110			(25.4	)		(21.5	)
BUSINESS VOLUMES
Customer loans		82,422			(7.2	)		(6.2	)		82,422			(16.1	)		(12.5	)
Customer deposits		70,198			(10.6	)		(9.5	)		70,198			(18.3	)		(14.1	)

(1). - Including dividends, income from equity-accounted method and other operating income/expenses

JANUARY - SEPTEMBER 58

FINANCIAL REPORT 2013 INFORMATION BY SECONDARY SEGMENTS

The performance of the business areas and their contribution to revenue generation was as follows:

Transaction Banking

Global Transaction Banking, which includes cash management, trade finance, basic financing and custody, reduced its client revenues by 2% y-o-y due to exchange rate impact (+2% excluding it).

Of note was trade finance, underpinned by the evolution of units being developed in core markets, such as the UK and the US, and stability in cash management, with the focus on transaction banking in an environment of tough competition.

Basic Financing was weaker due to disintermediation and management of balance sheets, partly compensated by management of spreads. In custody and settlement falls in Europe and rises in Latin America.

Corporate Finance

Corporate Finance includes mergers and acquisitions (M&A), equity capital markets (ECM) and investment solutions for corporate clients via corporate equity derivatives (CED). Clients revenues declined 4% year-on-year, following a third quarter of low activity in Latin America, the engine of growth at the beginning of 2013.

Of note in M&A in the third quarter were advisory services for British Columbia Investment Management (purchase of 5% of Compañía Logística de Hidrocarburos from Galp Energia); for AXA Private Equity and AENA (acquisition of the Luton airport concession from Abertis); and for Pacific Gas and Electric (purchase of Iberdrola Renovables’s wind-power parks in Poland). In ECM, strong activity in Mexico (capital increase of Corporación Inmobiliaria Vesta; public offering of Grupo Aeroportuario del Centro Norte – OMA -). CED’s revenues rose for the third year running.

Credit

Credit markets, which includes origination and distribution of corporate loans or structured finance, bond origination and securitization teams and asset and capital structuring (AC&S), reduced client revenues 3% y-o-y, (+0.4% in constant euros). The declines in Spain were not offset by rises in other countries, particularly the US and Latin America.

In syndicated loans, Santander participated in some of the main corporate operations. Of note was its role as bookrunner and mandate lead arranger for the $49,000 million loan for Verizon to acquire 49% of Verizon Wireless from Vodaphone.

In Project Finance, Santander was global coordinator in the first project bond in Europe (EUR 1,400 million), under the Europe 2020 Project Bond Initiative of the European Union and the European Investment Bank. In Latin America, we were the bookrunner in the $1,700 million project bond of Brazil’s Odebrecht in the US market.

In bonds and notes markets, Santander continued to consolidate business and the push of new markets, both in Europe and Latin America. Of note was our participation as senior co-manager for Verizon’s issue.

In A&CS, the sustained rise continued in the clients’ portfolio at the global level, enabling financing operations to be closed in core countries and significantly reflected in revenues.

Global Markets

This area includes the sale and distribution of fixed income and equity derivatives, interest rates and inflation, the trading and hedging of exchange rates, short-term money markets for the Group’s wholesale and retail clients, management of books associated with distribution, brokerage of equities, and derivatives for investment and hedging solutions.

In the first nine months, this area reduced its total client revenues by 8% year-on-year (-5% excluding fx impact), with a varied performance by components. Of note was the good evolution of revenues from the business of sales (+6% in constant euros) in an environment of limited opportunities. All countries registered growth except for the UK. Of note, the recovery of Spain in the third quarter, which recorded positive year-on-year growth.

All client segments increased their sales year-on-year, backed by interest rate, inflation and money market business, which registered double-digit growth.

The contribution of the management of books was lower in the main units, with falls in the large units except for Spain, Brazil and Mexico. The fall in trading volumes in some markets offset the positive impact of inflows and some volatility scenarios.

In equities, including derivatives, the decline in client revenues eased (-2% excluding the fx impact) compared to high double-digit falls at the beginning of the year. This was due to the recovery of cash equity volumes in the last two quarters in Europe, particularly in Spain.

Mixed trends in derivatives for investment and hedging: good progress in Latin America ,due to the positive impact on managed volumes of exchange-rate and interest rate volatility, as against a slowdown in Europe where volumes were lower than in 2012.

GROSS INCOME PERFORMANCE

EUR Million

GROSS INCOME BREAKDOWN

EUR Million

(*) Excluding exchange rate impact: total revenues 9M’13/9M’12: +3%; customers -1%

59 JANUARY - SEPTEMBER

INFORMATION BY SECONDARY SEGMENTS FINANCIAL REPORT 2013

Asset Management and Insurance

u Attributable profit in the first nine months of EUR 247 million (-13.9% y-o-y).

• Impact of the corporate operations in insurance in Spain and Portugal.

• Excluding them, and at constant exchange rates, profit would have been 3.2% higher.

u On a like-for-like basis, solid total gross income (+3% y-o-y, including that paid to the networks), which accounted for 9% of the operating areas’ total.

u Asset Management: growth in total gross income for the Group (+2.7% y-o-y on a like-for-like basis).

• Strategic agreement to push global business (target: double the volume in five years).

u Insurance: solid evolution of gross income (+3% on a like-for-like basis) plus value of business recognized (corporate operations in Spain and Portugal).

Attributable profit was 13.9% lower year-on-year in the first nine months at EUR 247 million. It accounts for 5% of the operating areas’ total.

Excluding the corporate operations recorded in the second half of 2012 (reinsurance of life assurance operations in Spain and Portugal) and in the first half of 2013 (strategic alliance in bancassurance -life and general– in Spain) attributable profit would be 3.2% higher in constant euros.

Strategy

Santander reached an agreement in the second quarter with Warburg Pincus and General Atlantic to push the global asset management business of Santander Asset Management (SAM), which will improve its capacity to compete with large international fund managers and exploit its knowledge and experience advantage in the markets where it operates.

SAM’s aim is to double the business volume in the next five years and participate in the process of consolidating the asset management industry at the international level.

The operation, which is expected to be completed by the end of the year, values SAM at EUR 2,047 million and will generate a net capital gain for the Group of EUR 700 million.

Meanwhile, the strategic agreement with Aegon to boost bancassurance business in Spain (life and general) was completed in the first half of 2013. This will generate a net capital gain of EUR 270 million.

Results

Gross income declined 12.1% in the first nine months year-on-year which, together with stable costs, fed through to profits (-13.9%). Excluding the perimeter and exchange rate impacts, gross income declined 0.7% and attributable profit was 3.2% higher.

The area’s total contribution to the Group including revenues recorded by the distribution networks amounted to EUR 2,886 million (-3.6% y-o-y; +3% on a like-for-like basis and constant exchange rates). These revenues accounted for 9% of the operating areas’ total. The total results for the Group (profit before tax plus fees paid to the networks) were EUR 2,652 million (-3.4% y-o-y and +3% on a like-for-like basis and excluding exchange rate impact).

Asset Management

Attributable profit in the first nine months was EUR 75 million, 12.7% lower than in the same period of 2012, following a fall of 2.6% in gross income affected by exchange rates. In constant euros, the changes were +1.1% gross income and -9.3% attributable profit).

Including the fees recorded by the networks, the total gross income for the Group was EUR 897 million (-2.0% y-o-y; +2.7% without the exchange-rate impact) and the total result for the Group was EUR 760 million (-2.3% y-o-y; +2.6% without the exchange rate impact).

ASSET MANAGEMENT AND INSURANCE (EUR Million)

				Var. o/ 2Q’13									Var. o/ 9M’12
	3Q’13			(%)			(%) w/o FX			9M’13			(%)			(%) w/o FX
INCOME STATEMENT
Net interest income		22			(8.0	)		(4.3	)		73			(15.3	)		(11.4	)
Net fees		87			(4.7	)		0.3			265			(14.9	)		(10.4	)
Gains (losses) on financial transactions		1			15.2			18.4			5			486.0			—
Other operating income (1)		69			(11.2	)		(7.3	)		231			(9.2	)		(5.2	)
Gross income		180			(7.6	)		(3.2	)		574			(12.1	)		(7.8	)
Operating expenses		(79	)		0.5			3.1			(234	)		0.9			4.2
Net operating income		101			(13.1	)		(7.4	)		340			(19.3	)		(14.6	)
Net loan-loss provisions		0			(94.0	)		(94.0	)		0			—			—
Other income		(0	)		—			—			(1	)		(94.8	)		(94.5	)
Profit before taxes		101			(13.6	)		(8.1	)		340			(16.5	)		(11.5	)
Tax on profit		(23	)		(17.9	)		(13.5	)		(77	)		(25.6	)		(21.6	)
Profit from continuing operations		78			(12.3	)		(6.4	)		262			(13.3	)		(8.0	)
Net profit from discontinued operations		—			—			—			—			—			—
Consolidated profit		78			(12.3	)		(6.4	)		262			(13.3	)		(8.0	)
Minority interests		6			36.7			47.0			16			(3.6	)		7.3
Attributable profit to the Group		72			(14.9	)		(9.3	)		247			(13.9	)		(8.8	)

(1).- Including dividends, income from equity-accounted method and other operating income/expenses

JANUARY - SEPTEMBER 60

FINANCIAL REPORT 2013 INFORMATION BY SECONDARY SEGMENTS

ASSET UNDER MANAGEMENT EUR Billion	TOTAL GROUP REVENUES* EUR Million

(*) Year-on-year change at constant perimeter and exchange rates.

Total: +3%; Insurance: +3%; Asset Management: +3%

The total volume of managed funds was EUR 155,600 million, 1% more than at the end of 2012 and 11% higher than in September 2012 (+6% and +19%, respectively, without the exchange-rate impact). Of this, EUR 103,500 million were mutual and pension funds, EUR 9,500 million were clients portfolios other than funds, including institutional mandates, and EUR 42,600 million of management mandates on behalf of other Group units.

The main developments by units and countries were as follows:

• In traditional management of assets, the Group managed EUR 152,800 million. Of the total, 89% is concentrated in the four large markets of Spain, Brazil, the UK, and Mexico.

In Spain, Santander Asset Management took advantage of the revitalization of mutual fund business (2013, first year with net subscriptions and revaluation of assets since 2005) to consolidate its leadership in funds and increase its market share (+80 b.p. so far this year to 16.0%, according to Inverco). Management is focused on profiled funds, while reducing participation in money market funds, which have lower value added. Funds under traditional management, including pension funds and mandates, amounted to EUR 59,300 million (+14% more than at the end of 2012).

Brazil has EUR 41,200 million under management (+7% in local currency this year), spurred by retail and corporate clients, and with stability in institutional mandates.

The UK, with a more selective focus, reduced its balances under management to EUR 24,300 million (-4% in sterling).

In Mexico, we continued to improve the mix of the EUR 10,500 million under management (+5% in pesos this year) by launching guaranteed and other funds, which try to replicate the different risk profiles of the clients at whom the funds are aimed.

Of note in the rest of countries was the growth in Chile (+18% in pesos) and Poland (+10% in local currency), which offset the decline in the balances in Portugal (-14%) and Puerto Rico (-19% in dollars).

• In non-traditional management (real estate, alternative management and private equity funds), Santander Asset Management continued to adjust its activity to the scant demand for these products. Managed funds remained at around EUR 3,000 million.

Insurance

Santander Insurance posted an attributable profit of EUR 172 million in the first nine months, 14.4% less than in the same period of 2012, following the corporate operations in Spain and Portugal. Eliminating this effect and the change in exchange rates in the rest of countries, attributable profit was 8.3% higher.

Including the fees paid to the networks, insurance business generated total revenues of EUR 1,989 million for the Group, 4.3% less year-on-year, although higher on a like-for-like basis and constant exchange rates (+3%). The total result for the Group (income before taxes of insurers and brokers plus fee income paid to the networks) was EUR 1,892 million
(-3.9% y-o-y; +3% on a like-for-like basis and constant euros).

Continental Europe’s total results were 0.3% lower y-o-y because of the perimeter, but 7.4% higher on a like-for-like basis, supported by Spain, Portugal and consumer business.

Spain repeated its nominal contribution, but increased 9.1% excluding corporate operations. In Portugal, the nominal fall of 11.0% was the equivalent of a rise of 18.3% without the reinsurance operation, thanks to the good evolution of savings-investment products.

Also noteworthy was the change of trend at Santander Consumer Finance, whose contribution was 3.1% higher year-on-year, backed by faster growth in Germany and the Nordic countries.

The UK’s total results continued to fall sharply (-31.3% in sterling), in line with the market as a whole, within the process of tailoring the offer of products to clients’ needs.

Latin America’s total result was 7.8% higher year-on-year in constant euros and on a like-for-like basis, backed by the distribution of protection products via banking networks and intensive use of alternative channels. In local currency, general contribution of Mexico (+16.8%) and Brazil (+6.8%), as well as Argentina, Uruguay and Puerto Rico with growth rates of more than 25%. Only Chile’s result was lower (-16.2%) because of the reduced contracting of protection products.

Lastly, in the US the notable rise over 2012 continued. Fee income from the distribution of third party insurance almost doubled in dollars.

ASSET MANAGEMENT AND INSURANCE. INCOME STATEMENT (EUR Million)
	Net operating income																Attributable profit to the Group
			o/ 2Q’13								o/ 9M’12								o/ 2Q’13								o/ 9M’12
	3Q’13		(%)			(%) w/o FX			9M’13		(%)			(%) w/o FX			3Q’13		(%)			(%) w/o FX			9M’13		(%)			(%) w/o FX
Mutual funds		31		(17.9	)		(13.1	)		106		(13.0	)		(8.5	)		14		(44.3	)		(40.4	)		65		(17.5	)		(14.0	)
Pension funds		5		30.0			30.0			14		36.4			36.4			4		29.4			29.4			10		39.2			39.2
Insurance		65		(13.0	)		(6.5	)		220		(24.0	)		(19.1	)		54		(3.9	)		2.9			172		(14.4	)		(8.6	)
Asset Manag. and Insurance		101		(13.1	)		(7.4	)		340		(19.3	)		(14.6	)		72		(14.9	)		(9.3	)		247		(13.9	)		(8.8	)

61 JANUARY - SEPTEMBER

CORPORATE GOVERNANCE AND SIGNIFICANT EVENTS IN THE QUARTER FINANCIAL REPORT 2013

Corporate Governance

Changes to the Board’s regulations

On August 1, 2013, following approval by the bank’s Board at its meeting on June 24, 2013, the changes to the Board’s regulations were recorded in the Cantabria Mercantile Registry.

This reform aims to adapt the Board’s regulations to the new legislative developments that recently came into effect in the sphere of corporate governance, including, in particular, those derived from Royal Decree 256/2013 of April 12, on the evaluation of the adaptation of the members of the management body and of those in key positions, which incorporate to Spanish regulations the criteria contained in: i) the guide of the

European Banking Authority (EBA), of December 27, 2011, on corporate governance; and ii) the guidelines of the EBA, of November 22, 2012, on assessing the suitability of members of the Board, Management and those in key positions in credit institutions.

Of note among the novelties of this reform is increasing the powers of the appointments and remuneration committee with the proposal and revision of the internal procedures for the selecting and continuous assessment of employees responsible for internal control functions and who hold key posts for the daily development of banking activity, as well as informing on their appointment and departure and continuous assessment.

Significant events in the quarter and subsequent ones

Agreement with Financiera El Corte Inglés

Banco Santander and El Corte Inglés, reached a strategic agreement by which Santander Consumer Finance, Banco Santander’s consumer finance subsidiary, will acquire a 51% interest in Financiera El Corte Inglés,

Financiera El Corte Inglés is a consumer finance business that provides financing for the acquisition of all sorts of goods and services via the entities of the El Corte Inglés group. El Corte Inglés is a leading department store in Spain.

The agreement will enable Santander to consolidate its leadership position in Europe in the consumer finance market and will increase the diversification of its portfolio in Spain and Portugal, thanks to the complementarity of its business with that of Financiera El Corte Inglés.

The transaction values Financiera El Corte Inglés at EUR 415 million. It is expected that El Corte Inglés will receive prior to the closing of the transaction a special dividend of approximately EUR 140 million. Thus, Santander Consumer will pay a price of approximately EUR 140 million for the 51% stake of Financiera El Corte Inglés.

Closing of the transaction is conditional upon, inter alia, the required regulatory and antitrust approvals. It is expected that closing will take place in the first quarter of 2014.

Structure of the capital of Banco Santander Brazil

Banco Santander, S.A. announced that its subsidiary Banco Santander (Brazil) S.A. will optimise the structure of its equity structure by replacing common equity (Core Tier 1) capital of BRL 6,000 million (an amount that will be distributed on a pro rata basis among its shareholders) with new issue instruments for an equivalent amount eligible as regulatory capital (Additional Tier I and Tier II), which will be offered to shareholders of Banco Santander (Brazil) S.A.

Banco Santander S.A. aims to subscribe a percentage of the newly issued instruments in proportion to its stake in Banco Santander (Brazil) S.A. of approximately 75%, as well as those not subscribed by the remaining shareholders of Banco Santander (Brazil) S.A.

The operation requires the necessary regulatory approvals and that of the assembly of shareholders of Banco Santander (Brazil) S.A.

JANUARY - SEPTEMBER 62

FINANCIAL REPORT 2013 CORPORATE SOCIAL RESPONSIBILITY

Corporate Social Responsibility

Grupo Santander continued to develop new initiatives under its commitment to Corporate Social Responsibility. The highlights of the third quarter were:

Presence in sustainable indices

Banco Santander renewed its presence in the Dow Jones Sustainability Index, one of the world’s leading indices of socially responsible investment.

Santander remains for yet another year among the best assessed companies, with a score of 84 points, one more than in 2012 and well above the 58 points on average for the banking sector. Furthermore, it obtained excellent scores in the three areas analyzed—economic, social and environmental—. Of note was the criteria on Anti-crime policy / measures and Codes of conduct / compliance / corruption & bribery, with scores of 100 and 83 points respectively, and which compare very well with the sector’s average of 76 and 73 points respectively.

These good results are a significant recognition of Santander’s sustainability strategy, which is one of the 10 best banks in the world in this sphere and the leader in Spain, according to the rating agency RobecoSAM.

This renewal joins that obtained in the first half in the FTSE4Good index, and the election of Banco Santander as the “global sustainable bank of the year” in the eighth edition of the prestigious Sustainable Finance Awards of the Financial Times and the International Finance Corporation last June.

Social investment:

• Santander Universities

Banco Santander supports higher education, research and entrepreneurship via more that 1,000 co-operation agreements with universities throughout the world. As part of this strategy, the bank makes available to students, teachers and researchers various programmes of scholarships and grants to encourage international mobility.

The chairman of Banco Santander and Jenson Button, the Vodafone McLaren Mercedes driver, delivered in the UK 100 Fórmula Santander grants to British university students that can be used to finance their studies in another country. These grants are worth EUR 5,000 each and aim to foster the international mobility of recent graduates.

Banco Santander, through its Santander Universities global division, held in Argentina the eighth edition of the Young Entrepreneurs prizes, an initiative that fosters the entrepreneurial culture between university students and young professionals. Four projects were awarded prizes out of more than 600 projects presented by state and private universities from all over the country, focused on encouraging new technologies and the use of recycled materials.

Banco Santander held in Ciudad Grupo Santander the XXVI edition of the summer courses of the Complutense University of Madrid, which were sponsored by the bank. Among the issues discussed were measures to stimulate energy efficiency in business corporate centres, encourage volunteers, marketing strategies used to attract and retain talent in large companies, new information technologies in universities and an entrepreneurial workshop.

• Investment in the community

Banco Santander develops local programmes to support the communities in which it operates in order to contribute to their economic and social development. These programmes often enjoy the support and participation of the Group’s employees.

At the VI “Santander is You” week, the Group’s employees showed their solidarity by participating in many events in for the benefit of people at the risk of social exclusion. One of the most noteworthy initiatives was the holding of the third “Santander Solidarity Race” in Madrid, Seville and Santander that involved 5,500 people.

Banco Santander signed a co-operation agreement with the Spanish Federation of Food Banks that will enable more than 8,600 employees who participate in the Santander Committed Volunteers programme to develop corporate volunteer initiatives and help families with economic problems in Spain. This project increases the range of such initiatives that Santander offers its employees in Spain via four other institutions: Aldeas Infantiles, the Spanish Association against Cancer, the Red Cross and Entreculturas.

In the US, Sovereign donated $500 for every goal scored in the Gold Cup 2013 and in the matches of the New England Revolution. The funds collected were assigned to three NGOs in Boston that support young people and poor families.

The environment and climate change

Banco Santander has a firm commitment to protect the environment and combat climate change, one of the main pillars of its strategy in sustainability.

In Brazil, the bank launched the “Reduction and compensation of CO2” initiative, an online tool that calculates the tonnes of carbon issued by someone a year and includes advice on how to reduce it, both at work and at home.

Banco Santander will participate in the construction and financing of an AUD 250 million wind-power farm in New South Wales, Australia.

63 JANUARY - SEPTEMBER

ITEM 3

Investor Relations Ciudad Grupo Santander Edificio Pereda, 1st floor Avda de Cantabria, o/n 28660 Boadilla del Monte Madrid (Spain) Tel: 34 (91) 259 65 14 / 34 (91) 259 65 20 Fax: 34 (91) 257 02 45 e-mail: investor@gruposantander,com Legal Head Office: Paseo Pereda, 9-12, Santander (Spain) Tel: 34 (942) 20 61 00 Operational Head Office: Ciudad Grupo Santander Avda. de Cantabria, o/n 28660 Boadilla del Monte, Madrid (Spain) www.santander.com

Key consolidated data

					Variation
	9M ’13		9M ’12		Amount			%			2012
Balance sheet and income statement (EUR million)
Total assets		1,192,181		1,300,006		(107,825	)		(8.3	)		1,269,598
Net customer loans		686,821		752,680		(65,859	)		(8.7	)		719,112
Customer deposits		633,433		630,072		3,361			0.5			626,639
Customer funds under management		954,500		976,938		(22,438	)		(2.3	)		968,987
Shareholders’ equity		83,954		81,281		2,672			3.3			80,921
Total managed funds		1,316,513		1,421,634		(105,121	)		(7.4	)		1,387,740
Income statement (EUR million)
Net interest income		19,659		22,823		(3,165	)		(13.9	)		29,923
Gross income		30,348		33,123		(2,775	)		(8.4	)		43,406
Pre-provision profit (net operating income)		15,490		18,079		(2,589	)		(14.3	)		23,422
Profit from continuing operations		4,121		2,451		1,670			68.1			2,993
Attributable profit to the Group		3,310		1,872		1,439			76.9			2,295
(*).- Variations w/o exchange rate
3Q’13 / 3Q’12: Net interest income: -0.6%; Gross income: -0.4%; Pre-provision profit: -2.2%; Attributable profit: +8.5%
9M’13 / 9M’12: Net interest income: -8.1%; Gross income: -2.7%; Pre-provision profit: -8.2%; Attributable profit: +110,4%
EPS, profitability and efficiency (%)
EPS (euro)		0.31		0.19		0.12			59.8			0.23
ROE		5.48		3.17								2.91
ROTE		7.83		4.68								4.28
ROA		0.44		0.26								0.25
RoRWA		1.01		0.59								0.56
Efficiency ratio (with amortisations)		49.0		45.4								46.0
Core capital ratio (BIS II) and NPL ratios (%)
Core capital (BIS II)		11.56		10.38								10.33
NPL ratio		5.43		4.34								4.54
NPL coverage		63.9		69.5								72.4
Market capitalisation and shares
Shares (millions at period-end)		11,092		9,899		1,193			12.1			10,321
Share price (euros)		6.028		5.795		0.233			4.0			6.100
Market capitalisation (EUR million)		66,863		57,363		9,500			16.6			62,959
Book value (euro)		7.58		8.08								7.88
Price / Book value (X)		0.79		0.72								0.77
P/E ratio (X)		14.61		22.45								25.96
Other data
Number of shareholders		3,281,450		3,283,913		(2,463	)		(0.1	)		3,296,270
Number of employees		184,786		188,146		(3,360	)		(1.8	)		186,763
Number of branches		14,561		14,496		65			0.4			14,392
Information on ordinary profit
Attributable profit to the Group		3,310		4,318		(1,007	)		(23.3	)		5,341
EPS (euro)		0.31		0.45		(0.14	)		(30.7	)		0.55
ROE		5.48		7.31								6.78
ROTE		7.83		10.79								9.97
ROA		0.44		0.51								0.48
RoRWA		1.01		1.16								1.10
P/E ratio (X)		14.61		9.73								11.15

(*).- Variations w/o exchange rate: 3Q’13 / 2Q’13: +8.5%; 9M’13 / 9M’12: -17.7%

Note: The financial information in this report has not been audited, but it was approved by the Board of Directors at its meeting on October, 21 2013, following a favourable report from the Audit and Compliance Committee on October, 14 2013. The Committee verified that the information for the quarter was based on the same principles and practices as those used to draw up the annual financial statements.

Income statement

EUR million

							Variation
	9M ’13			9M ’12			Amount			%			% excl. TC
Net interest income		19,659			22,823			(3,165	)		(13.9	)		(8.1	)
Net fees		7,380			7,733			(354	)		(4.6	)		0.6
Gains (losses) on financial transactions		2,840			2,115			725			34.3			41.1
Other operating income		470			451			19			4.2			4.1
Dividends		276			343			(67	)		(19.4	)		(18.7	)
Income from equity-accounted method		390			340			50			14.7			21.8
Other operating income/expenses		(196	)		(232	)		36			(15.5	)		(5.9	)
Gross income		30,348			33,123			(2,775	)		(8.4	)		(2.7	)
Operating expenses		(14,858	)		(15,044	)		186			(1.2	)		3.9
General administrative expenses		(13,130	)		(13,405	)		275			(2.1	)		3.0
Personnel		(7,561	)		(7,829	)		268			(3.4	)		1.5
Other general administrative expenses		(5,569	)		(5,576	)		7			(0.1	)		5.2
Depreciation and amortisation		(1,728	)		(1,639	)		(89	)		5.5			10.4
Net operating income		15,490			18,079			(2,589	)		(14.3	)		(8.2	)
Net loan-loss provisions		(8,583	)		(9,506	)		923			(9.7	)		(3.4	)
Impairment losses on other assets		(378	)		(261	)		(117	)		45.0			45.3
Other income		(1,046	)		(1,344	)		298			(22.2	)		(15.7	)
Ordinary profit before taxes		5,482			6,968			(1,486	)		(21.3	)		(15.5	)
Tax on profit		(1,353	)		(2,039	)		686			(33.7	)		(29.2	)
Ordinary profit from continuing operations		4,130			4,929			(800	)		(16.2	)		(9.8	)
Net profit from discontinued operations		(14	)		50			(64	)		—			—
Ordinary consolidated profit		4,115			4,979			(864	)		(17.3	)		(11.0	)
Minority interests		805			661			143			21.7			33.6
Ordinary attributable profit to the Group		3,310			4,318			(1,007	)		(23.3	)		(17.7	)
Net capital gains and provisions		—			(2,446	)		2,446			(100.0	)		(100.0	)
Attributable profit to the Group		3,310			1,872			1,439			76.9			110.4
EPS (euros)		0.31			0.19			0.12			59.8
Diluted EPS (euros)		0.31			0.19			0.12			60.0
Pro memoria:
Average total assets		1,234,813			1,289,241			(54,429	)		(4.2	)
Average shareholders’ equity		80,577			78,713			1,864			2.4

Quarterly income statement

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Net interest income		7,763			7,622			7,438			7,100			6,652			6,722			6,285
Net fees		2,612			2,556			2,566			2,526			2,516			2,531			2,332
Gains (losses) on financial transactions		797			675			643			583			969			879			992
Other operating income		114			270			67			75			154			187			129
Dividends		61			216			66			80			59			145			72
Income from equity-accounted method		136			120			84			87			154			114			122
Other operating income/expenses		(83	)		(66	)		(83	)		(93	)		(59	)		(72	)		(65	)
Gross income		11,287			11,123			10,713			10,283			10,290			10,320			9,738
Operating expenses		(5,043	)		(4,934	)		(5,067	)		(4,939	)		(4,996	)		(5,000	)		(4,862	)
General administrative expenses		(4,519	)		(4,422	)		(4,464	)		(4,396	)		(4,428	)		(4,400	)		(4,303	)
Personnel		(2,634	)		(2,587	)		(2,608	)		(2,478	)		(2,582	)		(2,548	)		(2,431	)
Other general administrative expenses		(1,885	)		(1,835	)		(1,856	)		(1,918	)		(1,846	)		(1,852	)		(1,871	)
Depreciation and amortisation		(524	)		(512	)		(603	)		(543	)		(569	)		(600	)		(559	)
Net operating income		6,244			6,188			5,646			5,344			5,294			5,320			4,876
Net loan-loss provisions		(3,118	)		(3,401	)		(2,987	)		(3,134	)		(2,919	)		(3,065	)		(2,600	)
Impairment losses on other assets		(83	)		(97	)		(81	)		(592	)		(110	)		(126	)		(141	)
Other income		(487	)		(381	)		(475	)		(105	)		(261	)		(415	)		(369	)
Ordinary profit before taxes		2,556			2,309			2,103			1,512			2,003			1,713			1,766
Tax on profit		(720	)		(657	)		(662	)		(275	)		(496	)		(393	)		(464	)
Ordinary profit from continuing operations		1,836			1,652			1,441			1,237			1,508			1,320			1,302
Net profit from discontinued operations		17			11			22			20			—			(14	)		(0	)
Ordinary consolidated profit		1,853			1,663			1,463			1,257			1,508			1,306			1,302
Minority interests		227			237			198			234			303			256			246
Ordinary attributable profit to the Group		1,627			1,427			1,264			1,024			1,205			1,050			1,055
Net capital gains and provisions		—			(1,304	)		(1,142	)		(601	)		—			—			—
Attributable profit to the Group		1,627			123			122			423			1,205			1,050			1,055
EPS (euros)		0.17			0.01			0.01			0.04			0.12			0.10			0.10
Diluted EPS (euros)		0.17			0.01			0.01			0.04			0.11			0.10			0.10

Quarterly income statement

Constant EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Net interest income		7,157			7,223			7,004			6,904			6,481			6,609			6,569
Net fees		2,448			2,452			2,436			2,458			2,466			2,496			2,417
Gains (losses) on financial transactions		764			640			609			575			955			875			1,010
Other operating income		120			268			63			72			154			187			130
Dividends		61			213			65			78			59			144			73
Income from equity-accounted method		130			115			76			84			152			111			126
Other operating income/expenses		(70	)		(60	)		(77	)		(90	)		(57	)		(69	)		(69	)
Gross income		10,490			10,583			10,112			10,008			10,056			10,166			10,126
Operating expenses		(4,750	)		(4,736	)		(4,821	)		(4,809	)		(4,908	)		(4,937	)		(5,013	)
General administrative expenses		(4,252	)		(4,243	)		(4,247	)		(4,281	)		(4,349	)		(4,344	)		(4,437	)
Personnel		(2,484	)		(2,485	)		(2,481	)		(2,412	)		(2,538	)		(2,517	)		(2,506	)
Other general administrative expenses		(1,768	)		(1,758	)		(1,766	)		(1,869	)		(1,811	)		(1,827	)		(1,931	)
Depreciation and amortisation		(498	)		(493	)		(575	)		(528	)		(559	)		(593	)		(576	)
Net operating income		5,740			5,847			5,291			5,199			5,148			5,229			5,113
Net loan-loss provisions		(2,862	)		(3,202	)		(2,824	)		(3,063	)		(2,836	)		(3,016	)		(2,732	)
Impairment losses on other assets		(84	)		(96	)		(80	)		(591	)		(110	)		(126	)		(142	)
Other income		(446	)		(350	)		(444	)		(108	)		(257	)		(411	)		(377	)
Ordinary profit before taxes		2,348			2,199			1,942			1,438			1,945			1,676			1,862
Tax on profit		(665	)		(627	)		(619	)		(262	)		(481	)		(385	)		(486	)
Ordinary profit from continuing operations		1,683			1,572			1,323			1,176			1,464			1,291			1,375
Net profit from discontinued operations		17			10			20			19			—			(14	)		(0	)
Ordinary consolidated profit		1,700			1,582			1,343			1,195			1,464			1,277			1,375
Minority interests		196			222			184			228			293			250			261
Ordinary attributable profit to the Group		1,504			1,360			1,160			967			1,170			1,026			1,114
Net capital gains and provisions		—			(1,304	)		(1,146	)		(601	)		—			—			—
Attributable profit to the Group		1,504			56			14			366			1,170			1,026			1,114

Exchange rates: 1 euro / currency parity

	Average (income statement)				Period-end (balance sheet)
	9M ’13		9M ’12		30.09.13		31.12.12		30.09.12
US$		1.3166		1.2799		1.3505		1.3194		1.2930
Pound		0.8519		0.8116		0.8360		0.8161		0.7981
Brazilian real		2.7787		2.4498		3.0406		2.7036		2.6232
New Mexican peso		16.6778		16.9314		17.8463		17.1845		16.6085
Chilean peso		642.3215		626.1244		682.8803		631.7287		611.5567
Argentine peso		6.9340		5.7094		7.8228		6.4865		6.0655
Polish zloty		4.2003		4.2063		4.2288		4.0740		4.1038

Net fees

EUR million

					Variation
	9M ’13		9M ’12		Amount			%
Fees from services		4,298		4,555		(258	)		(5.7	)
Mutual & pension funds		843		878		(34	)		(3.9	)
Securities and custody		514		528		(15	)		(2.8	)
Insurance		1,725		1,772		(47	)		(2.7	)
Net fee income		7,380		7,733		(354	)		(4.6	)

Operating expenses

EUR million

					Variation
	9M ’13		9M ’12		Amount			%
Personnel expenses		7,561		7,829		(268	)		(3.4	)
General expenses		5,569		5,576		(7	)		(0.1	)
Information technology		748		676		72			10.7
Communications		461		489		(28	)		(5.8	)
Advertising		435		494		(59	)		(11.9	)
Buildings and premises		1,375		1,318		57			4.3
Printed and office material		122		119		4			3.0
Taxes (other than profit tax)		327		297		29			9.9
Other expenses		2,102		2,183		(82	)		(3.7	)
Personnel and general expenses		13,130		13,405		(275	)		(2.1	)
Depreciation and amortisation		1,728		1,639		89			5.5
Total operating expenses		14,858		15,044		(186	)		(1.2	)

Net loan-loss provisions

EUR million

							Variation
	9M ’13			9M ’12			Amount			%
Non performing loans		9,346			10,421			(1,076	)		(10.3	)
Country-risk		2			1			1			138.1
Recovery of written-off assets		(764	)		(916	)		152			(16.6	)
Total		8,583			9,506			(923	)		(9.7	)

Balance sheet

EUR million

							Variation
	30.09.13			30.09.12			Amount			%			31.12.12
Assets
Cash on hand and deposits at central banks		88,099			95,979			(7,881	)		(8.2	)		118,488
Trading portfolio		153,292			199,727			(46,435	)		(23.2	)		177,917
Debt securities		43,179			41,521			1,658			4.0			43,101
Customer loans		9,998			20,639			(10,641	)		(51.6	)		9,162
Equities		6,080			5,097			983			19.3			5,492
Trading derivatives		79,669			122,472			(42,803	)		(34.9	)		110,319
Deposits from credit institutions		14,367			9,998			4,369			43.7			9,843
Other financial assets at fair value		38,660			29,150			9,510			32.6			28,356
Customer loans		11,878			15,788			(3,911	)		(24.8	)		13,936
Other (deposits at credit institutions, debt securities and		26,782			13,361			13,421			100.4			14,420
Available-for-sale financial assets		93,346			97,189			(3,843	)		(4.0	)		92,267
Debt securities		88,929			92,803			(3,874	)		(4.2	)		87,724
Equities		4,417			4,386			31			0.7			4,542
Loans		725,796			781,509			(55,713	)		(7.1	)		756,858
Deposits at credit institutions		52,939			58,649			(5,711	)		(9.7	)		53,785
Customer loans		664,946			716,253			(51,307	)		(7.2	)		696,013
Debt securities		7,911			6,607			1,305			19.7			7,059
Investments		5,032			4,676			356			7.6			4,453
Intangible assets and property and equipment		16,826			17,055			(229	)		(1.3	)		17,296
Goodwill		23,729			25,178			(1,449	)		(5.8	)		24,626
Other		47,402			49,543			(2,141	)		(4.3	)		49,338
Total assets		1,192,181			1,300,006			(107,825	)		(8.3	)		1,269,598
Liabilities and shareholders’ equity
Trading portfolio		128,983			172,388			(43,405	)		(25.2	)		143,241
Customer deposits		15,085			23,086			(8,001	)		(34.7	)		8,897
Marketable debt securities		1			122			(121	)		(99.5	)		1
Trading derivatives		79,816			123,459			(43,643	)		(35.3	)		109,743
Other		34,081			25,721			8,360			32.5			24,600
Other financial liabilities at fair value		48,996			42,259			6,737			15.9			45,418
Customer deposits		28,633			22,788			5,845			25.6			28,638
Marketable debt securities		6,475			6,769			(294	)		(4.3	)		4,904
Due to central banks and credit institutions		13,889			12,702			1,186			9.3			11,876
Financial liabilities at amortized cost		896,554			961,851			(65,297	)		(6.8	)		959,321
Due to central banks and credit institutions		99,054			138,261			(39,207	)		(28.4	)		131,670
Customer deposits		589,716			584,199			5,516			0.9			589,104
Marketable debt securities		174,960			199,256			(24,296	)		(12.2	)		201,064
Subordinated debt		15,300			19,090			(3,791	)		(19.9	)		18,238
Other financial liabilities		17,525			21,044			(3,519	)		(16.7	)		19,245
Insurance liabilities		1,324			1,129			195			17.3			1,425
Provisions		14,665			15,952			(1,287	)		(8.1	)		16,148
Other liability accounts		20,020			24,039			(4,019	)		(16.7	)		22,771
Total liabilities		1,110,542			1,217,618			(107,076	)		(8.8	)		1,188,324
Shareholders’ equity		83,954			81,281			2,672			3.3			81,333
Capital stock		5,546			4,949			597			12.1			5,161
Reserves		75,320			74,862			459			0.6			74,528
Attributable profit to the Group		3,311			1,872			1,439			76.9			2,295
Less: dividends		(223	)		(401	)		178			(44.4	)		(650	)
Equity adjustments by valuation		(12,133	)		(8,561	)		(3,572	)		41.7			(9,474	)
Minority interests		9,818			9,667			151			1.6			9,415
Total equity		81,639			82,388			(749	)		(0.9	)		81,275
Total liabilities and equity		1,192,181			1,300,006			(107,825	)		(8.3	)		1,269,598

Balance sheet

EUR million

	31.03.12			30.06.12			30.09.12			31.12.12			31.03.13			30.06.13			30.09.13
Assets
Cash on hand and deposits at central banks		111,943			86,719			95,979			118,488			79,202			81,673			88,099
Trading portfolio		174,223			196,487			199,727			177,917			184,803			169,729			153,292
Debt securities		53,235			48,477			41,521			43,101			49,703			51,275			43,179
Customer loans		13,300			22,688			20,639			9,162			13,089			13,776			9,998
Equities		5,304			4,769			5,097			5,492			5,294			5,090			6,080
Trading derivatives		95,495			112,303			122,472			110,319			105,391			91,437			79,669
Deposits from credit institutions		6,889			8,250			9,998			9,843			11,326			8,151			14,367
Other financial assets at fair value		20,358			27,776			29,150			28,356			44,972			40,118			38,660
Customer loans		12,116			18,716			15,788			13,936			13,821			14,389			11,878
Other (deposits at credit institutions, debt securities and		8,242			9,061			13,361			14,420			31,151			25,728			26,782
Available-for-sale financial assets		99,165			97,647			97,189			92,267			107,125			105,617			93,346
Debt securities		94,349			93,111			92,803			87,724			102,511			100,811			88,929
Equities		4,816			4,536			4,386			4,542			4,614			4,805			4,417
Loans		779,331			787,159			781,509			756,858			766,319			730,764			725,796
Deposits at credit institutions		52,924			57,340			58,649			53,785			61,898			50,996			52,939
Customer loans		719,533			723,364			716,253			696,013			696,904			671,984			664,946
Debt securities		6,874			6,454			6,607			7,059			7,517			7,784			7,911
Investments		4,685			4,730			4,676			4,453			4,729			5,012			5,032
Intangible assets and property and equipment		16,816			16,474			17,055			17,296			17,227			17,060			16,826
Goodwill		25,200			25,136			25,178			24,626			25,070			23,878			23,729
Other		51,117			49,924			49,543			49,338			52,253			49,267			47,402
Total assets		1,282,838			1,292,052			1,300,006			1,269,598			1,281,698			1,223,118			1,192,181
Liabilities and shareholders’ equity
Trading portfolio		149,125			161,487			172,388			143,241			154,089			139,903			128,983
Customer deposits		16,085			28,765			23,086			8,897			13,200			17,569			15,085
Marketable debt securities		74			94			122			1			1			1			1
Trading derivatives		96,889			110,958			123,459			109,743			105,624			89,935			79,816
Other		36,077			21,669			25,721			24,600			35,264			32,399			34,081
Other financial liabilities at fair value		47,490			38,757			42,259			45,418			59,422			54,779			48,996
Customer deposits		32,068			23,974			22,788			28,638			31,473			32,427			28,633
Marketable debt securities		5,247			6,168			6,769			4,904			5,650			6,154			6,475
Deposits at credit institutions		10,174			8,615			12,702			11,876			22,298			16,198			13,889
Financial liabilities at amortized cost		964,252			973,084			961,851			959,321			943,057			910,139			896,554
Due to central banks and credit institutions		124,780			138,200			138,261			131,670			103,375			98,115			99,054
Customer deposits		594,633			591,269			584,199			589,104			608,555			594,938			589,716
Marketable debt securities		201,697			202,303			199,256			201,064			195,091			182,452			174,960
Subordinated debt		22,821			22,408			19,090			18,238			17,828			16,118			15,300
Other financial liabilities		20,321			18,905			21,044			19,245			18,208			18,516			17,525
Insurance liabilities		717			425			1,129			1,425			1,263			1,091			1,324
Provisions		17,206			16,451			15,952			16,148			16,021			15,116			14,665
Other liability accounts		21,914			22,026			24,039			22,771			23,305			20,696			20,020
Total liabilities		1,200,705			1,212,229			1,217,618			1,188,324			1,197,157			1,141,724			1,110,542
Shareholders’ equity		80,717			80,696			81,281			81,333			82,158			83,202			83,954
Capital stock		4,538			4,718			4,949			5,161			5,269			5,405			5,546
Reserves		74,552			74,229			74,862			74,528			75,683			75,542			75,320
Attributable profit to the Group		1,627			1,749			1,872			2,295			1,205			2,255			3,311
Less: dividends		—			—			(401	)		(650	)		—			—			(223	)
Equity adjustments by valuation		(6,831	)		(8,944	)		(8,561	)		(9,474	)		(9,013	)		(11,903	)		(12,133	)
Minority interests		8,247			8,071			9,667			9,415			11,397			10,095			9,818
Total equity		82,134			79,823			82,388			81,275			84,542			81,394			81,639
Total liabilities and equity		1,282,838			1,292,052			1,300,006			1,269,598			1,281,698			1,223,118			1,192,181

Customer loans

EUR million

					Variation
	30.09.13		30.09.12		Amount			%			31.12.12
Spanish Public sector		17,331		17,738		(407	)		(2.3	)		16,884
Other residents		165,571		188,392		(22,822	)		(12.1	)		183,130
Commercial bills		6,612		8,567		(1,955	)		(22.8	)		8,699
Secured loans		97,619		106,295		(8,677	)		(8.2	)		103,890
Other loans		61,340		73,530		(12,190	)		(16.6	)		70,540
Non-resident sector		529,465		570,722		(41,257	)		(7.2	)		544,520
Secured loans		324,631		350,418		(25,787	)		(7.4	)		339,519
Other loans		204,834		220,304		(15,470	)		(7.0	)		205,000
Gross customer loans		712,367		776,852		(64,486	)		(8.3	)		744,534
Loan-loss allowances		25,546		24,172		1,373			5.7			25,422
Net customer loans		686,821		752,680		(65,859	)		(8.7	)		719,112
Pro memoria: Doubtful loans		40,150		34,872		5,277			15.1			35,301
Public sector		172		103		69			66.9			121
Other residents		20,566		15,767		4,800			30.4			16,025
Non-resident sector		19,411		19,003		409			2.2			19,156

Customer loans

EUR million

	31.03.12		30.06.12		30.09.12		31.12.12		31.03.13		30.06.13		30.09.13
Spanish Public sector		12,801		17,959		17,738		16,884		17,561		17,634		17,331
Other residents		193,462		188,897		188,392		183,130		178,460		171,494		165,571
Commercial bills		8,790		9,081		8,567		8,699		8,007		7,654		6,612
Secured loans		110,731		108,305		106,295		103,890		101,863		97,997		97,619
Other loans		73,940		71,511		73,530		70,540		68,590		65,843		61,340
Non-resident sector		557,803		579,259		570,722		544,520		553,946		536,878		529,465
Secured loans		343,492		350,186		350,418		339,519		340,486		329,471		324,631
Other loans		214,311		229,073		220,304		205,000		213,461		207,407		204,834
Gross customer loans		764,065		786,114		776,852		744,534		749,967		726,007		712,367
Loan-loss allowances		19,116		21,346		24,172		25,422		26,154		25,857		25,546
Net customer loans		744,950		764,768		752,680		719,112		723,814		700,149		686,821
Pro memoria: Doubtful loans		31,812		33,499		34,872		35,301		37,138		39,023		40,150
Public sector		139		133		103		121		103		117		172
Other residents		14,613		15,104		15,767		16,025		16,613		19,201		20,566
Non-resident sector		17,060		18,262		19,003		19,156		20,422		19,705		19,411

Credit risk management *

EUR million

					Variation
	30.09.13		30.09.12		Amount			%			31.12.12
Non-performing loans		41,173		35,802		5,372			15.0			36,061
NPL ratio (%)		5.43		4.34		1.09 p.						4.54
Loan-loss allowances		26,300		24,889		1,411			5.7			26,111
Specific		22,373		20,741		1,633			7.9			21,793
Generic		3,927		4,149		(222	)		(5.3	)		4,319
NPL coverage (%)		63.9		69.5		(5.6 p.	)					72.4
Cost of credit (%) **		1.77		2.20		(0.43 p.	)					2.38

* Excluding country-risk

** 12 months net loan-loss provisions / average lending

Note: NPL ratio: Non-performing loans / computable assets

Credit risk management *

EUR million

	31.03.12		30.06.12		30.09.12		31.12.12		31.03.13		30.06.13		30.09.13
Non-performing loans		32,534		34,339		35,802		36,061		38,051		40,055		41,173
NPL ratio (%)		3.98		4.11		4.34		4.54		4.76		5.18		5.43
Loan-loss allowances		19,914		22,080		24,889		26,111		26,966		26,579		26,300
Specific		15,738		17,886		20,741		21,793		22,565		22,594		22,373
Generic		4,176		4,194		4,149		4,319		4,401		3,985		3,927
NPL coverage (%)		61.2		64.3		69.5		72.4		70.9		66.4		63.9
Cost of credit (%) **		1.51		1.91		2.20		2.38		2.38		2.05		1.77

* Excluding country-risk

** 12 months net loan-loss provisions / average lending

Non-performing loans by quarter

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Balance at beginning of period		32,006			32,534			34,339			35,802			36,061			38,051			40,055
Net additions		3,615			5,425			3,815			3,682			3,798			5,875			4,122
Increase in scope of consolidation		(602	)		(25	)		(1	)		(0	)		743			—			—
Exchange differences		41			(67	)		(36	)		(430	)		278			(1,260	)		(401	)
Write-offs		(2,527	)		(3,529	)		(2,316	)		(2,993	)		(2,829	)		(2,611	)		(2,603	)
Balance at period-end		32,534			34,339			35,802			36,061			38,051			40,055			41,173

Customer funds under management

EUR million

					Variation
	30.09.13		30.09.12		Amount			%			31.12.12
Resident public sector		12,893		7,277		5,616			77.2			8,487
Other residents		164,101		145,147		18,954			13.1			157,011
Demand deposits		74,878		68,863		6,015			8.7			71,526
Time deposits		83,798		62,440		21,358			34.2			75,414
Other		5,425		13,844		(8,419	)		(60.8	)		10,071
Non-resident sector		456,440		477,649		(21,209	)		(4.4	)		461,141
Demand deposits		242,801		231,458		11,342			4.9			228,698
Time deposits		155,426		182,822		(27,395	)		(15.0	)		179,503
Other		58,213		63,369		(5,156	)		(8.1	)		52,940
Customer deposits		633,433		630,072		3,361			0.5			626,639
Debt securities*		181,435		206,147		(24,712	)		(12.0	)		205,969
Subordinated debt		15,300		19,090		(3,791	)		(19.9	)		18,238
On-balance-sheet customer funds		830,168		855,310		(25,142	)		(2.9	)		850,846
Mutual funds		93,048		93,745		(697	)		(0.7	)		89,176
Pension funds		10,427		9,699		728			7.5			10,076
Managed portfolios		20,857		18,184		2,673			14.7			18,889
Other customer funds under management		124,332		121,628		2,704			2.2			118,141
Customer funds under management		954,500		976,938		(22,438	)		(2.3	)		968,987

* Including retail commercial paper (EUR million): 4,820 in September 2013, 12,535 in September 2012 and 11,536 in December 2012

Mutual funds

EUR million

					Variation
	30.09.13		30.09.12		Amount			%			31.12.12
Spain		26,919		23,730		3,189			13.4			23,093
Portugal		1,141		1,611		(471	)		(29.2	)		1,544
Poland		2,600		2,188		412			18.8			2,443
United Kingdom		9,572		16,243		(6,671	)		(41.1	)		13,919
Latin America		52,816		49,972		2,844			5.7			48,178
Total		93,048		93,745		(697	)		(0.7	)		89,176

Pension funds

EUR million

					Variation
	30.09.13		30.09.12		Amount		%		31.12.12
Spain		9,650		8,935		715		8.0		9,289
Portugal		776		764		12		1.6		787
Total		10,427		9,699		728		7.5		10,076

Customer funds under management

EUR million

	31.03.12		30.06.12		30.09.12		31.12.12		31.03.13		30.06.13		30.09.13
Resident public sector		10,925		7,334		7,277		8,487		13,198		10,734		12,893
Other residents		137,134		147,886		145,147		157,011		164,090		167,266		164,101
Demand deposits		67,382		72,016		68,863		71,526		73,015		76,274		74,878
Time deposits		60,511		61,424		62,440		75,414		82,772		83,227		83,798
Other		9,241		14,445		13,844		10,071		8,302		7,764		5,425
Non-resident sector		494,727		488,789		477,649		461,141		475,940		466,934		456,440
Demand deposits		224,318		223,221		231,458		228,698		238,130		238,021		242,801
Time deposits		194,764		185,528		182,822		179,503		176,979		163,559		155,426
Other		75,645		80,040		63,369		52,940		60,831		65,354		58,213
Customer deposits		642,786		644,009		630,072		626,639		653,228		644,934		633,433
Debt securities*		207,018		208,565		206,147		205,969		200,742		188,607		181,435
Subordinated debt		22,821		22,408		19,090		18,238		17,828		16,118		15,300
On-balance-sheet customer funds		872,625		874,981		855,310		850,846		871,798		849,659		830,168
Mutual funds		105,914		97,683		93,745		89,176		93,773		88,447		93,048
Pension funds		9,765		9,436		9,699		10,076		10,181		10,135		10,427
Managed portfolios		19,500		18,064		18,184		18,889		20,926		20,325		20,857
Other customer funds under management		135,179		125,184		121,628		118,141		124,880		118,907		124,332
Customer funds under management		1,007,804		1,000,165		976,938		968,987		996,678		968,565		954,500

* Including retail commercial paper (in EUR million): 8,346 in March 2012, 9,803 in June 2012, 12,535 in September 2012, 11,536 in December 2012, 10,153 in March 2013, 7,471 in June 2013 and 4.820 in September 2013

Mutual funds

EUR million

	31.03.12		30.06.12		30.09.12		31.12.12		31.03.13		30.06.13		30.09.13
Spain		27,292		24,060		23,730		23,093		23,580		24,340		26,919
Portugal		1,809		1,441		1,611		1,544		1,437		1,281		1,141
Poland		2,059		2,059		2,188		2,443		2,428		2,529		2,600
United Kingdom		15,674		16,110		16,243		13,919		12,638		10,687		9,572
Latin America		59,080		54,013		49,972		48,178		53,690		49,610		52,816
Total		105,914		97,683		93,745		89,176		93,773		88,447		93,048

Pension funds

EUR million

	31.03.12		30.06.12		30.09.12		31.12.12		31.03.13		30.06.13		30.09.13
Spain		8,983		8,680		8,935		9,289		9,401		9,366		9,650
Portugal		782		757		764		787		780		768		776
Total		9,765		9,436		9,699		10,076		10,181		10,135		10,427

Total equity and capital with the nature of financial liabilities

EUR million

							Variation
	30.09.13			30.09.12			Amount			%			31.12.12
Capital stock		5,546			4,949			597			12.1			5,161
Additional paid-in surplus		36,949			35,069			1,880			5.4			37,302
Reserves		38,476			39,971			(1,495	)		(3.7	)		37,513
Treasury stock		(105	)		(179	)		74			(41.3	)		(287	)
Shareholders’ equity (before profit and dividends)		80,866			79,811			1,055			1.3			79,689
Attributable profit		3,311			1,872			1,439			76.9			2,295
Interim dividend distributed		(223	)		(401	)		178			(44.4	)		(650	)
Interim dividend not distributed		—			—			—			—			(412	)
Shareholders’ equity (after retained profit)		83,954			81,281			2,672			3.3			80,921
Valuation adjustments		(12,133	)		(8,561	)		(3,572	)		41.7			(9,474	)
Minority interests		9,818			9,667			151			1.6			9,415
Total equity (after retained profit)		81,639			82,388			(749	)		(0.9	)		80,862
Preferred shares and securities in subordinated debt		4,247			4,792			(545	)		(11.4	)		4,740
Total equity and capital with the nature of financial liabilities		85,886			87,180			(1,294	)		(1.5	)		85,602

Computable capital and BIS II ratio

EUR million

							Variation
	30.09.13			30.09.12			Amount			%			31.12.12
Core capital		58,085			58,370			(285	)		(0.5	)		57,558
Basic capital		62,502			63,122			(620	)		(1.0	)		62,234
Supplementary capital		10,545			12,710			(2,165	)		(17.0	)		11,981
Deductions		(1,211	)		(1,248	)		38			(3.0	)		(1,279	)
Computable capital		71,836			74,584			(2,748	)		(3.7	)		72,936
Risk-weighted assets		502,297			562,285			(59,988	)		(10.7	)		557,030
BIS II ratio		14.30			13.26			1.04 p.						13.09
Tier I (before deductions)		12.44			11.23			1.21 p.						11.17
Core capital		11.56			10.38			1.18 p.						10.33
Shareholders’ equity surplus (BIS II ratio)		31,652			29,601			2,051			6.9			28,374

Key data by principal segments

	Net operating income									Attributable profit to the Group									Efficiency ratio (%)				ROE (%)
	9M ’13			9M ’12			Var (%)			9M ’13			9M ’12			Var (%)			9M ’13		9M ’12		9M ’13		9M ’12
Income statement (EUR million)
Continental Europe*		4,627			5,105			(9.4	)		833			1,192			(30.1	)		51.6		48.7		3.73		5.08
o/w: Spain		2,501			3,037			(17.6	)		367			746			(50.8	)		53.4		48.7		4.09		7.19
Portugal		324			464			(30.1	)		77			96			(19.3	)		53.3		45.0		4.06		5.03
Poland		564			382			47.6			261			235			11.0			43.8		45.2		18.39		18.18
Santander Consumer Finance		1,315			1,350			(2.6	)		585			562			4.1			44.1		43.1		6.95		6.93
United Kingdom*		1,618			1,692			(4.4	)		793			778			1.9			54.7		54.7		8.09		7.80
Latin America		9,665			11,441			(15.5	)		2,589			3,274			(20.9	)		40.3		37.3		14.32		19.28
o/w: Brazil		6,487			8,345			(22.3	)		1,277			1,671			(23.6	)		38.1		34.6		12.55		17.75
Mexico		1,412			1,267			11.4			564			827			(31.8	)		39.4		38.6		18.88		25.92
Chile		976			1,007			(3.1	)		316			356			(11.2	)		42.3		40.7		17.39		20.60
USA		742			1,105			(32.8	)		587			579			1.3			55.5		44.3		13.35		14.80
Operating areas*		16,653			19,344			(13.9	)		4,801			5,823			(17.6	)		46.3		43.0		8.79		10.72
Corporate Activities*		(1,164	)		(1,265	)		(8.0	)		(1,491	)		(1,505	)		(1.0	)
Total Group*		15,490			18,079			(14.3	)		3,310			4,318			(23.3	)		49.0		45.4		5.48		7.31
Net capital gains and provisions											—			(2,446	)		(100.0	)
Total Group											3,310			1,872			76.9			49.0		45.4		5.48		3.17
	Net customer loans									Customer deposits									NPL ratio (%)				NPL coverage (%)
	30.09.13			30.09.12			Var (%)			30.09.13			30.09.12			Var (%)			30.09.13		30.09.12		30.09.13		30.09.12
Activity (EUR million)
Continental Europe		271,878			290,909			(6.5	)		262,970			239,961			9.6			8.48		6.07		61.1		68.4
o/w: Spain		164,810			180,506			(8.7	)		188,824			169,335			11.5			6.40		3.64		45.0		45.7
Portugal		24,712			26,759			(7.6	)		24,185			23,877			1.3			7.86		6.16		51.9		51.7
Poland		16,298			9,659			68.7			17,404			11,035			57.7			7.75		4.69		64.1		64.0
Santander Consumer Finance		55,898			56,822			(1.6	)		30,726			33,087			(7.1	)		3.96		3.96		109.2		109.7
United Kingdom		237,138			270,051			(12.2	)		197,252			213,508			(7.6	)		1.98		1.94		41.6		44.8
Latin America		135,832			142,412			(4.6	)		132,114			135,000			(2.1	)		5.32		5.31		82.9		89.8
o/w: Brazil		69,395			75,293			(7.8	)		65,801			69,588			(5.4	)		6.12		6.79		92.0		92.0
Mexico		21,007			21,545			(2.5	)		25,783			24,162			6.7			3.58		1.69		99.0		175.4
Chile		29,697			30,043			(1.1	)		22,076			23,192			(4.8	)		6.00		5.00		49.7		60.8
USA		38,184			41,845			(8.8	)		36,181			38,454			(5.9	)		2.26		2.31		96.6		109.7
Operating areas		683,033			745,218			(8.3	)		628,518			626,922			0.3			5.42		4.33		64.0		71.3
Total Group		686,821			752,680			(8.7	)		633,433			630,072			0.5			5.43		4.34		63.9		69.5

	Employees				Branches
	30.09.13		30.09.12		30.09.13		30.09.12
Operating means
Continental Europe		59,642		58,365		6,701		6,521
o/w: Spain		28,297		29,808		4,573		4,680
Portugal		5,627		5,721		647		670
Poland		12,499		8,895		836		522
Santander Consumer Finance		11,869		12,604		635		638
United Kingdom		25,375		26,683		1,191		1,266
Latin America		87,708		91,269		5,963		5,987
o/w: Brazil		50,409		54,901		3,661		3,782
Mexico		14,486		13,348		1,229		1,123
Chile		12,299		12,339		488		496
USA		9,571		9,452		706		722
Operating areas		182,296		185,769		14,561		14,496
Corporate Activities		2,490		2,377
Total Group		184,786		188,146		14,561		14,496

Operating areas

EUR million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		21,274			24,238			(2,964	)		(12.2	)
Net fees		7,432			7,759			(327	)		(4.2	)
Gains (losses) on financial transactions		1,920			1,600			319			20.0
Other operating income*		360			315			45			14.1
Gross income		30,985			33,912			(2,927	)		(8.6	)
Operating expenses		(14,332	)		(14,568	)		236			(1.6	)
General administrative expenses		(12,682	)		(13,031	)		349			(2.7	)
Personnel		(7,400	)		(7,686	)		285			(3.7	)
Other general administrative expenses		(5,282	)		(5,345	)		64			(1.2	)
Depreciation and amortisation		(1,650	)		(1,537	)		(113	)		7.3
Net operating income		16,653			19,344			(2,691	)		(13.9	)
Net loan-loss provisions		(8,380	)		(9,475	)		1,095			(11.6	)
Other income		(1,145	)		(1,488	)		343			(23.1	)
Ordinary profit before taxes		7,128			8,381			(1,252	)		(14.9	)
Tax on profit		(1,504	)		(1,946	)		442			(22.7	)
Ordinary profit from continuing operations		5,624			6,435			(811	)		(12.6	)
Net profit from discontinued operations		(14	)		50			(64	)		—
Ordinary consolidated profit		5,609			6,484			(875	)		(13.5	)
Minority interests		808			661			147			22.2
Ordinary attributable profit to the Group		4,801			5,823			(1,022	)		(17.6	)
Net capital gains and provisions		—			(3,372	)		3,372			(100.0	)
Attributable profit to the Group		4,801			2,450			2,351			95.9

* Including dividends, income from equity-accounted method and other operating income/expenses

					Variation
	30.09.13		30.09.12		Amount			%
Balance sheet
Customer loans**		683,033		745,218		(62,185	)		(8.3	)
Trading portfolio (w/o loans)		124,361		159,370		(35,009	)		(22.0	)
Available-for-sale financial assets		74,755		90,852		(16,097	)		(17.7	)
Due from credit institutions**		111,289		97,932		13,357			13.6
Intangible assets and property and equipment		13,147		12,838		308			2.4
Other assets		135,018		128,431		6,587			5.1
Total assets/liabilities & shareholders’ equity		1,141,602		1,234,640		(93,038	)		(7.5	)
Customer deposits**		628,518		626,922		1,595			0.3
Marketable debt securities**		112,286		124,416		(12,129	)		(9.7	)
Subordinated debt**		10,707		14,202		(3,495	)		(24.6	)
Insurance liabilities		1,324		1,129		195			17.3
Due to credit institutions**		146,950		159,153		(12,203	)		(7.7	)
Other liabilities		171,624		238,217		(66,593	)		(28.0	)
Shareholders’ equity***		70,193		70,602		(409	)		(0.6	)
Other customer funds under management		124,332		121,628		2,704			2.2
Mutual funds		93,048		93,745		(697	)		(0.7	)
Pension funds		10,427		9,699		728			7.5
Managed portfolios		20,857		18,184		2,673			14.7
Customer funds under management		875,843		887,168		(11,325	)		(1.3	)

** Including all on-balance sheet balances for this item

*** Not including profit of the year

Ratios (%) and other data
ROE	8.79	10.72	(1.93 p.	)
Efficiency ratio (with amortisations)	46.3	43.0	3.3 p.
NPL ratio	5.42	4.33	1.09 p.
NPL coverage	64.0	71.3	(7.3 p.	)
Number of employees	182,296	185,769	(3,473	)	(1.9	)
Number of branches	14,561	14,496	65		0.4

Operating areas

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		8,216			8,063			7,958			7,528			7,232			7,231			6,811
Net fees		2,625			2,559			2,575			2,531			2,530			2,551			2,351
Gains (losses) on financial transactions		698			449			453			382			738			520			662
Other operating income*		72			236			7			60			119			159			82
Gross income		11,612			11,307			10,993			10,501			10,618			10,461			9,906
Operating expenses		(4,872	)		(4,779	)		(4,918	)		(4,885	)		(4,818	)		(4,822	)		(4,692	)
General administrative expenses		(4,377	)		(4,286	)		(4,368	)		(4,360	)		(4,268	)		(4,266	)		(4,149	)
Personnel		(2,567	)		(2,528	)		(2,590	)		(2,518	)		(2,517	)		(2,487	)		(2,396	)
Other general administrative expenses		(1,810	)		(1,758	)		(1,778	)		(1,841	)		(1,750	)		(1,779	)		(1,752	)
Depreciation and amortisation		(494	)		(493	)		(550	)		(525	)		(550	)		(556	)		(543	)
Net operating income		6,740			6,528			6,075			5,616			5,800			5,639			5,214
Net loan-loss provisions		(3,113	)		(3,405	)		(2,957	)		(3,080	)		(2,889	)		(2,877	)		(2,614	)
Other income		(509	)		(496	)		(482	)		(258	)		(306	)		(453	)		(386	)
Ordinary profit before taxes		3,118			2,627			2,636			2,277			2,605			2,310			2,213
Tax on profit		(723	)		(593	)		(630	)		(401	)		(550	)		(467	)		(487	)
Ordinary profit from continuing operations		2,394			2,034			2,006			1,876			2,055			1,843			1,726
Net profit from discontinued operations		17			11			22			20			—			(14	)		(0	)
Ordinary consolidated profit		2,412			2,045			2,028			1,896			2,055			1,829			1,725
Minority interests		254			221			186			253			303			257			248
Ordinary attributable profit to the Group		2,158			1,823			1,841			1,643			1,752			1,572			1,477
Net capital gains and provisions		—			(1,986	)		(1,386	)		(657	)		—			—			—
Attributable profit to the Group		2,158			(163	)		455			986			1,752			1,572			1,477

* Including dividends, income from equity-accounted method and other operating income/expenses

	31.03.12		30.06.12		30.09.12		31.12.12		31.03.13		30.06.13		30.09.13
Balance sheet
Customer loans**		741,689		760,087		745,218		714,004		720,616		696,454		683,033
Trading portfolio (w/o loans)		146,916		157,634		159,370		154,847		154,901		143,239		124,361
Available-for-sale financial assets		94,145		94,048		90,852		83,317		89,676		83,196		74,755
Due from credit institutions**		88,335		86,724		97,932		93,657		121,064		102,394		111,289
Intangible assets and property and equipment		12,686		12,484		12,838		13,309		13,320		13,241		13,147
Other assets		129,285		125,176		128,431		127,773		124,272		126,398		135,018
Total assets/liabilities & shareholders’ equity		1,213,055		1,236,154		1,234,640		1,186,907		1,223,849		1,164,922		1,141,602
Customer deposits**		622,657		630,975		626,922		623,487		650,661		638,956		628,518
Marketable debt securities**		120,102		126,207		124,416		123,965		121,062		113,716		112,286
Subordinated debt**		16,581		17,064		14,202		13,372		13,358		11,706		10,707
Insurance liabilities		717		425		1,129		1,425		1,263		1,091		1,324
Due to credit institutions**		163,361		154,713		159,153		153,842		154,347		139,171		146,950
Other liabilities		216,007		234,384		238,217		201,043		206,836		187,664		171,624
Shareholders’ equity***		73,630		72,388		70,602		69,773		76,323		72,619		70,193
Other customer funds under management		135,179		125,184		121,628		118,141		124,885		118,907		124,332
Mutual funds		105,914		97,683		93,745		89,176		93,772		88,447		93,048
Pension funds		9,765		9,436		9,699		10,076		10,188		10,135		10,427
Managed portfolios		19,500		18,064		18,184		18,889		20,926		20,325		20,857
Customer funds under management		894,519		899,429		887,168		878,965		909,965		883,284		875,843
**     Including all on-balance sheet balances for this item ***  Not including profit of the year
Other information
NPL ratio		3.95		4.09		4.33		4.53		4.71		5.16		5.42
NPL coverage		62.1		64.8		71.3		73.3		71.8		66.3		64.0

Continental Europe

EUR million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		6,086			6,757			(672	)		(9.9	)
Net fees		2,715			2,769			(55	)		(2.0	)
Gains (losses) on financial transactions		665			254			411			162.3
Other operating income*		97			169			(72	)		(42.7	)
Gross income		9,562			9,949			(387	)		(3.9	)
Operating expenses		(4,935	)		(4,844	)		(91	)		1.9
General administrative expenses		(4,384	)		(4,351	)		(33	)		0.8
Personnel		(2,653	)		(2,636	)		(17	)		0.7
Other general administrative expenses		(1,731	)		(1,715	)		(16	)		0.9
Depreciation and amortisation		(551	)		(493	)		(58	)		11.7
Net operating income		4,627			5,105			(478	)		(9.4	)
Net loan-loss provisions		(2,840	)		(3,047	)		207			(6.8	)
Other income		(574	)		(427	)		(147	)		34.4
Ordinary profit before taxes		1,213			1,630			(417	)		(25.6	)
Tax on profit		(263	)		(396	)		133			(33.6	)
Ordinary profit from continuing operations		950			1,234			(284	)		(23.0	)
Net profit from discontinued operations		(0	)		(2	)		2			(83.0	)
Ordinary consolidated profit		950			1,232			(282	)		(22.9	)
Minority interests		117			40			76			189.0
Ordinary attributable profit to the Group		833			1,192			(359	)		(30.1	)
Net capital gains and provisions		—			(3,453	)		3,453			(100.0	)
Attributable profit to the Group		833			(2,261	)		3,094			—

* Including dividends, income from equity-accounted method and other operating income/expenses

					Variation
	30.09.13		30.09.12		Amount			%
Balance sheet
Customer loans**		271,878		290,909		(19,031	)		(6.5	)
Trading portfolio (w/o loans)		61,710		88,244		(26,535	)		(30.1	)
Available-for-sale financial assets		41,520		46,720		(5,199	)		(11.1	)
Due from credit institutions**		59,339		48,776		10,563			21.7
Intangible assets and property and equipment		6,234		5,457		778			14.3
Other assets		27,421		22,952		4,469			19.5
Total assets/liabilities & shareholders’ equity		468,102		503,058		(34,955	)		(6.9	)
Customer deposits**		262,970		239,961		23,009			9.6
Marketable debt securities**		15,578		21,100		(5,521	)		(26.2	)
Subordinated debt**		365		128		237			185.1
Insurance liabilities		1,324		1,129		195			17.3
Due to credit institutions**		70,116		71,151		(1,036	)		(1.5	)
Other liabilities		88,857		138,726		(49,869	)		(35.9	)
Shareholders’ equity***		28,893		30,862		(1,970	)		(6.4	)
Other customer funds under management		47,961		42,945		5,017			11.7
Mutual funds		30,659		27,529		3,130			11.4
Pension funds		10,427		9,699		728			7.5
Managed portfolios		6,876		5,717		1,159			20.3
Customer funds under management		326,875		304,133		22,742			7.5

** Including all on-balance sheet balances for this item

*** Not including profit of the year

Ratios (%) and other data
ROE	3.73	5.08	(1.36p.	)
Efficiency ratio (with amortisations)	51.6	48.7	2.9 p.
NPL ratio	8.48	6.07	2.41 p.
NPL coverage	61.1	68.4	(7.3p.	)
Number of employees	59,642	58,365	1,277		2.2
Number of branches	6,701	6,521	180		2.8

Continental Europe

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		2,236			2,260			2,262			2,097			2,005			2,066			2,014
Net fees		921			952			896			855			911			920			884
Gains (losses) on financial transactions		282			(53	)		24			52			265			131			270
Other operating income*		32			173			(35	)		13			18			71			8
Gross income		3,470			3,332			3,147			3,018			3,198			3,188			3,176
Operating expenses		(1,618	)		(1,602	)		(1,625	)		(1,613	)		(1,668	)		(1,637	)		(1,630	)
General administrative expenses		(1,455	)		(1,440	)		(1,455	)		(1,439	)		(1,485	)		(1,452	)		(1,447	)
Personnel		(874	)		(877	)		(886	)		(861	)		(906	)		(878	)		(869	)
Other general administrative expenses		(582	)		(563	)		(570	)		(577	)		(578	)		(574	)		(578	)
Depreciation and amortisation		(162	)		(162	)		(169	)		(174	)		(183	)		(185	)		(182	)
Net operating income		1,853			1,730			1,522			1,405			1,530			1,551			1,547
Net loan-loss provisions		(1,095	)		(1,087	)		(866	)		(1,056	)		(901	)		(993	)		(946	)
Other income		(179	)		(175	)		(73	)		(147	)		(192	)		(194	)		(188	)
Ordinary profit before taxes		579			469			583			202			437			363			413
Tax on profit		(144	)		(101	)		(152	)		(16	)		(100	)		(70	)		(93	)
Ordinary profit from continuing operations		435			369			431			186			336			293			321
Net profit from discontinued operations		1			(4	)		1			(5	)		—			(0	)		(0	)
Ordinary consolidated profit		436			365			432			181			336			293			321
Minority interests		14			13			13			8			29			42			45
Ordinary attributable profit to the Group		421			351			419			173			307			250			275
Net capital gains and provisions		—			(1,986	)		(1,467	)		(657	)		—			—			—
Attributable profit to the Group		421			(1,635	)		(1,048	)		(484	)		307			250			275

* Including dividends, income from equity-accounted method and other operating income/expenses

	31.03.12		30.06.12		30.09.12		31.12.12		31.03.13		30.06.13		30.09.13
Balance sheet
Customer loans**		300,611		301,663		290,909		283,427		287,195		278,466		271,878
Trading portfolio (w/o loans)		78,957		84,927		88,244		87,992		84,960		78,032		61,710
Available-for-sale financial assets		54,792		51,296		46,720		38,309		45,439		44,259		41,520
Due from credit institutions**		44,508		45,421		48,776		49,020		63,313		59,516		59,339
Intangible assets and property and equipment		5,566		5,476		5,457		5,697		5,815		6,251		6,234
Other assets		27,108		23,499		22,952		30,827		23,082		21,880		27,421
Total assets/liabilities & shareholders’ equity		511,542		512,281		503,058		495,272		509,803		488,403		468,102
Customer deposits**		250,037		245,255		239,961		256,154		272,222		267,427		262,970
Marketable debt securities**		19,051		19,112		21,100		21,119		19,990		16,916		15,578
Subordinated debt**		175		180		128		118		351		349		365
Insurance liabilities		717		425		1,129		1,425		1,263		1,091		1,324
Due to credit institutions**		74,185		66,743		71,151		78,177		75,019		68,156		70,116
Other liabilities		135,505		149,289		138,726		107,245		110,675		104,976		88,857
Shareholders’ equity***		31,872		31,278		30,862		31,034		30,284		29,489		28,893
Other customer funds under management		46,320		42,375		42,945		43,391		43,958		44,652		47,961
Mutual funds		31,160		27,560		27,529		27,080		27,444		28,150		30,659
Pension funds		9,765		9,436		9,699		10,076		10,188		10,135		10,427
Managed portfolios		5,395		5,378		5,717		6,236		6,327		6,367		6,876
Customer funds under management		315,582		306,922		304,133		320,783		336,522		329,344		326,875
**       Including all on-balance sheet balances for this item ***     Not including profit of the year
Other information
NPL ratio		5.41		5.67		6.07		6.29		6.62		7.83		8.48
NPL coverage		54.1		58.9		68.4		73.0		71.0		63.3		61.1

Spain

EUR million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		3,268			3,981			(713	)		(17.9	)
Net fees		1,461			1,548			(86	)		(5.6	)
Gains (losses) on financial transactions		520			196			324			164.8
Other operating income*		115			198			(83	)		(42.0	)
Gross income		5,364			5,923			(559	)		(9.4	)
Operating expenses		(2,863	)		(2,886	)		23			(0.8	)
General administrative expenses		(2,584	)		(2,609	)		24			(0.9	)
Personnel		(1,618	)		(1,674	)		56			(3.3	)
Other general administrative expenses		(966	)		(935	)		(32	)		3.4
Depreciation and amortisation		(278	)		(277	)		(1	)		0.4
Net operating income		2,501			3,037			(535	)		(17.6	)
Net loan-loss provisions		(1,835	)		(1,860	)		24			(1.3	)
Other income		(124	)		(94	)		(30	)		31.5
Profit before taxes		542			1,083			(541	)		(49.9	)
Tax on profit		(173	)		(333	)		160			(48.1	)
Profit from continuing operations		369			749			(380	)		(50.8	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		369			749			(380	)		(50.8	)
Minority interests		2			3			(1	)		(38.9	)
Attributable profit to the Group		367			746			(379	)		(50.8	)

* Including dividends, income from equity-accounted method and other operating income/expenses

					Variation
	30.09.13		30.09.12		Amount			%
Balance sheet
Customer loans**		164,810		180,506		(15,695	)		(8.7	)
Trading portfolio (w/o loans)		56,508		79,415		(22,907	)		(28.8	)
Available-for-sale financial assets		30,312		36,427		(6,115	)		(16.8	)
Due from credit institutions**		36,956		23,269		13,687			58.8
Intangible assets and property and equipment		4,170		3,980		189			4.8
Other assets		10,415		7,243		3,172			43.8
Total assets/liabilities & shareholders’ equity		303,170		330,839		(27,669	)		(8.4	)
Customer deposits**		188,824		169,335		19,489			11.5
Marketable debt securities**		4,821		12,537		(7,716	)		(61.5	)
Subordinated debt**		22		8		13			161.5
Insurance liabilities		554		723		(170	)		(23.5	)
Due to credit institutions**		26,950		19,019		7,931			41.7
Other liabilities		70,699		115,788		(45,088	)		(38.9	)
Shareholders’ equity***		11,301		13,429		(2,129	)		(15.9	)
Other customer funds under management		41,217		36,249		4,968			13.7
Mutual funds		26,764		23,561		3,203			13.6
Pension funds		9,645		8,931		715			8.0
Managed portfolios		4,807		3,757		1,050			28.0
Customer funds under management		234,883		218,129		16,755			7.7

** Including all on-balance sheet balances for this item

*** Not including profit of the year

Ratios (%) and other data
ROE	4.09	7.19	(3.10 p.)
Efficiency ratio (with amortisations)	53.4	48.7	4.6 p.
NPL ratio	6.40	3.64	2.76 p.
NPL coverage	45.0	45.7	(0.7 p.)
Number of employees	28,297	29,808	(1,511)	(5.1)
Number of branches	4,573	4,680	(107)	(2.3)

Spain

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		1,297			1,347			1,337			1,187			1,078			1,122			1,069
Net fees		510			534			504			502			501			500			460
Gains (losses) on financial transactions		203			(75	)		68			19			206			96			218
Other operating income*		32			156			10			50			30			77			8
Gross income		2,043			1,961			1,919			1,758			1,815			1,794			1,755
Operating expenses		(969	)		(954	)		(963	)		(937	)		(962	)		(951	)		(950	)
General administrative expenses		(877	)		(863	)		(869	)		(848	)		(869	)		(856	)		(859	)
Personnel		(559	)		(555	)		(559	)		(534	)		(554	)		(538	)		(526	)
Other general administrative expenses		(318	)		(308	)		(309	)		(314	)		(315	)		(319	)		(333	)
Depreciation and amortisation		(92	)		(91	)		(94	)		(88	)		(93	)		(94	)		(91	)
Net operating income		1,074			1,008			956			821			853			844			805
Net loan-loss provisions		(724	)		(670	)		(466	)		(613	)		(516	)		(690	)		(630	)
Other income		(55	)		(46	)		7			(34	)		(36	)		(29	)		(59	)
Profit before taxes		295			291			496			175			301			125			116
Tax on profit		(91	)		(90	)		(153	)		(60	)		(93	)		(38	)		(42	)
Profit from continuing operations		204			202			343			115			208			87			74
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		204			202			343			115			208			87			74
Minority interests		2			0			1			(1	)		1			1			0
Attributable profit to the Group		202			201			342			116			207			86			73

* Including dividends, income from equity-accounted method and other operating income/expenses

	31.03.12		30.06.12		30.09.12		31.12.12		31.03.13		30.06.13		30.09.13
Balance sheet
Customer loans**		183,368		186,509		180,506		178,426		176,462		171,122		164,810
Trading portfolio (w/o loans)		70,072		75,542		79,415		78,456		73,971		70,625		56,508
Available-for-sale financial assets		43,328		40,983		36,427		29,681		33,300		32,980		30,312
Due from credit institutions**		19,404		25,702		23,269		24,784		37,817		37,197		36,956
Intangible assets and property and equipment		4,086		4,019		3,980		4,160		4,185		4,147		4,170
Other assets		10,387		7,827		7,243		13,238		5,330		6,497		10,415
Total assets/liabilities & shareholders’ equity		330,644		340,581		330,839		328,746		331,065		322,567		303,170
Customer deposits**		175,903		174,552		169,335		187,261		197,464		194,331		188,824
Marketable debt securities**		8,347		9,805		12,537		11,538		10,153		7,471		4,821
Subordinated debt**		7		8		8		8		7		7		22
Insurance liabilities		511		144		723		963		708		475		554
Due to credit institutions**		25,381		18,794		19,019		28,411		21,435		23,127		26,950
Other liabilities		106,486		123,535		115,788		87,066		89,129		85,316		70,699
Shareholders’ equity***		14,010		13,744		13,429		13,499		12,170		11,840		11,301
Other customer funds under management		40,486		35,954		36,249		36,122		37,065		37,887		41,217
Mutual funds		27,123		23,892		23,561		22,926		23,417		24,180		26,764
Pension funds		8,978		8,675		8,931		9,285		9,403		9,362		9,645
Managed portfolios		4,385		3,387		3,757		3,911		4,245		4,345		4,807
Customer funds under management		224,743		220,318		218,129		234,928		244,689		239,696		234,883
**       Including all on-balance sheet balances for this item ***     Not including profit of the year
Other information
NPL ratio		3.35		3.26		3.64		3.84		4.12		5.75		6.40
NPL coverage		49.4		43.6		45.7		50.0		50.3		43.1		45.0
Spread (Retail Banking)		3.24		3.27		3.08		2.62		2.37		2.54		2.48
Loan spreads		1.60		1.59		1.64		1.81		2.21		2.26		2.33
Deposit spreads		1.64		1.68		1.44		0.81		0.16		0.28		0.15

Portugal

EUR million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		383			447			(64	)		(14.4	)
Net fees		251			258			(8	)		(2.9	)
Gains (losses) on financial transactions		40			109			(69	)		(63.3	)
Other operating income*		19			28			(9	)		(31.1	)
Gross income		693			842			(149	)		(17.7	)
Operating expenses		(369	)		(379	)		10			(2.6	)
General administrative expenses		(310	)		(318	)		9			(2.7	)
Personnel		(223	)		(229	)		6			(2.8	)
Other general administrative expenses		(87	)		(89	)		2			(2.6	)
Depreciation and amortisation		(59	)		(60	)		1			(1.8	)
Net operating income		324			464			(140	)		(30.1	)
Net loan-loss provisions		(182	)		(328	)		147			(44.7	)
Other income		(36	)		(15	)		(21	)		138.3
Profit before taxes		106			120			(14	)		(11.5	)
Tax on profit		(29	)		(24	)		(5	)		19.5
Profit from continuing operations		77			96			(19	)		(19.4	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		77			96			(19	)		(19.4	)
Minority interests		0			0			(0	)		(70.4	)
Attributable profit to the Group		77			96			(19	)		(19.3	)

* Including dividends, income from equity-accounted method and other operating income/expenses

					Variation
	30.09.13		30.09.12		Amount			%
Balance sheet
Customer loans**		24,712		26,759		(2,047	)		(7.6	)
Trading portfolio (w/o loans)		1,788		1,894		(106	)		(5.6	)
Available-for-sale financial assets		4,662		5,736		(1,074	)		(18.7	)
Due from credit institutions**		2,761		3,695		(934	)		(25.3	)
Intangible assets and property and equipment		896		399		497			124.5
Other assets		6,610		5,446		1,164			21.4
Total assets/liabilities & shareholders’ equity		41,429		43,929		(2,500	)		(5.7	)
Customer deposits**		24,185		23,877		308			1.3
Marketable debt securities**		2,375		3,759		(1,384	)		(36.8	)
Subordinated debt**		0		0		(0	)		(49.6	)
Insurance liabilities		88		77		11			13.7
Due to credit institutions**		11,880		13,503		(1,623	)		(12.0	)
Other liabilities		358		254		104			40.9
Shareholders’ equity***		2,544		2,459		85			3.4
Other customer funds under management		2,043		2,440		(397	)		(16.3	)
Mutual funds		1,141		1,611		(471	)		(29.2	)
Pension funds		776		764		12			1.6
Managed portfolios		126		65		61			94.4
Customer funds under management		28,603		30,076		(1,473	)		(4.9	)

** Including all on-balance sheet balances for this item

*** Not including profit of the year

Ratios (%) and other data
ROE	4.06	5.03	(0.96 p.	)
Efficiency ratio (with amortisations)	53.3	45.0	8.3 p.
NPL ratio	7.86	6.16	1.70 p.
NPL coverage	51.9	51.7	0.2 p.
Number of employees	5,627	5,721	(94	)	(1.6	)
Number of branches	647	670	(23	)	(3.4	)

Portugal

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		147			152			147			122			117			134			132
Net fees		90			91			77			70			85			87			79
Gains (losses) on financial transactions		70			7			32			(0	)		23			7			10
Other operating income*		10			17			1			2			6			6			7
Gross income		318			267			258			195			231			233			228
Operating expenses		(126	)		(126	)		(126	)		(128	)		(124	)		(122	)		(123	)
General administrative expenses		(106	)		(106	)		(106	)		(107	)		(104	)		(102	)		(103	)
Personnel		(76	)		(76	)		(76	)		(77	)		(75	)		(74	)		(74	)
Other general administrative expenses		(30	)		(29	)		(30	)		(31	)		(29	)		(28	)		(29	)
Depreciation and amortisation		(20	)		(20	)		(20	)		(21	)		(20	)		(20	)		(20	)
Net operating income		191			141			132			67			107			112			105
Net loan-loss provisions		(131	)		(91	)		(106	)		(65	)		(64	)		(62	)		(56	)
Other income		(16	)		(5	)		6			4			(13	)		(17	)		(6	)
Profit before taxes		44			45			31			7			31			32			44
Tax on profit		(12	)		(7	)		(5	)		20			(10	)		(7	)		(12	)
Profit from continuing operations		32			38			26			26			21			25			32
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		32			38			26			26			21			25			32
Minority interests		(0	)		0			0			(0	)		0			0			(0	)
Attributable profit to the Group		32			38			26			26			21			25			32

* Including dividends, income from equity-accounted method and other operating income/expenses

	31.03.12			30.06.12			30.09.12			31.12.12			31.03.13			30.06.13			30.09.13
Balance sheet
Customer loans**		27,808			27,289			26,759			25,960			25,518			25,210			24,712
Trading portfolio (w/o loans)		1,672			1,789			1,894			1,947			1,905			1,794			1,788
Available-for-sale financial assets		5,295			5,511			5,736			4,023			4,675			4,934			4,662
Due from credit institutions**		2,200			2,368			3,695			3,527			3,447			3,566			2,761
Intangible assets and property and equipment		439			418			399			382			392			906			896
Other assets		6,196			6,018			5,446			6,047			6,198			5,829			6,610
Total assets/liabilities & shareholders’ equity		43,609			43,394			43,929			41,887			42,136			42,239			41,429
Customer deposits**		23,321			23,772			23,877			23,971			23,703			23,577			24,185
Marketable debt securities**		4,734			3,892			3,759			3,492			3,411			2,396			2,375
Subordinated debt**		(0	)		0			0			0			0			0			0
Insurance liabilities		70			67			77			87			88			87			88
Due to credit institutions**		13,198			13,325			13,503			11,721			12,203			13,336			11,880
Other liabilities		(285	)		(196	)		254			195			180			296			358
Shareholders’ equity***		2,571			2,534			2,459			2,421			2,550			2,547			2,544
Other customer funds under management		2,654			2,266			2,440			2,421			2,316			2,158			2,043
Mutual funds		1,809			1,441			1,611			1,544			1,437			1,281			1,141
Pension funds		782			757			764			787			780			768			776
Managed portfolios		63			69			65			90			99			109			126
Customer funds under management		30,708			29,930			30,076			29,884			29,430			28,131			28,603
**       Including all on-balance sheet balances for this item ***     Not including profit of the year
Other information
NPL ratio		4.59			5.42			6.16			6.56			6.88			7.41			7.86
NPL coverage		57.6			53.4			51.7			53.1			52.9			52.4			51.9
Spread (Retail Banking)		1.43			1.43			1.34			1.23			1.22			1.26			1.38
Loan spreads		2.34			2.39			2.47			2.47			2.44			2.44			2.44
Deposit spreads		(0.91	)		(0.96	)		(1.13	)		(1.24	)		(1.22	)		(1.18	)		(1.06	)

Poland

EUR million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		575			401			174			43.4
Net fees		314			243			72			29.6
Gains (losses) on financial transactions		104			38			65			170.6
Other operating income*		11			15			(4	)		(27.5	)
Gross income		1,004			698			307			44.0
Operating expenses		(440	)		(315	)		(125	)		39.6
General administrative expenses		(399	)		(290	)		(110	)		37.8
Personnel		(238	)		(172	)		(66	)		38.5
Other general administrative expenses		(162	)		(118	)		(44	)		36.9
Depreciation and amortisation		(41	)		(26	)		(15	)		59.3
Net operating income		564			382			182			47.6
Net loan-loss provisions		(128	)		(80	)		(49	)		60.8
Other income		(1	)		2			(3	)		—
Profit before taxes		435			305			130			42.7
Tax on profit		(84	)		(62	)		(23	)		37.1
Profit from continuing operations		350			243			107			44.1
Net profit from discontinued operations		—			—			—			—
Consolidated profit		350			243			107			44.1
Minority interests		89			8			81			—
Attributable profit to the Group		261			235			26			11.0

* Including dividends, income from equity-accounted method and other operating income/expenses

					Variation
	30.09.13		30.09.12		Amount			%
Balance sheet
Customer loans**		16,298		9,659		6,639			68.7
Trading portfolio (w/o loans)		561		399		161			40.4
Available-for-sale financial assets		4,861		2,998		1,863			62.1
Due from credit institutions**		821		423		398			94.0
Intangible assets and property and equipment		220		140		80			57.3
Other assets		2,046		1,059		987			93.2
Total assets/liabilities & shareholders’ equity		24,805		14,678		10,127			69.0
Customer deposits**		17,404		11,035		6,369			57.7
Marketable debt securities**		—		—		—			—
Subordinated debt**		333		100		233			232.6
Insurance liabilities		—		—		—			—
Due to credit institutions**		2,577		713		1,864			261.2
Other liabilities		2,654		1,047		1,606			153.4
Shareholders’ equity***		1,837		1,782		55			3.1
Other customer funds under management		2,708		2,345		363			15.5
Mutual funds		2,600		2,188		412			18.8
Pension funds		—		—		—			—
Managed portfolios		109		157		(49	)		(31.0	)
Customer funds under management		20,445		13,480		6,965			51.7

** Including all on-balance sheet balances for this item

*** Not including profit of the year

Ratios (%) and other data
ROE	18.39	18.18	0.21 p.
Efficiency ratio (with amortisations)	43.8	45.2	(1.4 p.)
NPL ratio	7.75	4.69	3.06 p.
NPL coverage	64.1	64.0	0.1 p.
Number of employees	12,499	8,895	3,604	40.5
Number of branches	836	522	314	60.2

Poland

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		129			134			139			140			181			191			204
Net fees		78			80			84			89			104			106			105
Gains (losses) on financial transactions		10			16			13			41			35			29			39
Other operating income*		1			13			1			0			(1	)		14			(2	)
Gross income		218			243			237			270			318			340			346
Operating expenses		(105	)		(104	)		(107	)		(110	)		(158	)		(144	)		(138	)
General administrative expenses		(96	)		(96	)		(98	)		(102	)		(144	)		(130	)		(125	)
Personnel		(57	)		(57	)		(57	)		(62	)		(85	)		(78	)		(75	)
Other general administrative expenses		(39	)		(39	)		(40	)		(40	)		(59	)		(52	)		(50	)
Depreciation and amortisation		(9	)		(8	)		(9	)		(8	)		(14	)		(14	)		(13	)
Net operating income		113			139			130			160			160			196			208
Net loan-loss provisions		(20	)		(32	)		(27	)		(33	)		(42	)		(51	)		(35	)
Other income		2			(0	)		0			(3	)		(5	)		6			(2	)
Profit before taxes		95			106			103			124			113			151			171
Tax on profit		(21	)		(20	)		(21	)		(26	)		(23	)		(27	)		(35	)
Profit from continuing operations		75			86			82			99			91			123			136
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		75			86			82			99			91			123			136
Minority interests		2			3			3			5			21			32			36
Attributable profit to the Group		73			84			79			94			70			91			100

* Including dividends, income from equity-accounted method and other operating income/expenses

	31.03.12		30.06.12		30.09.12		31.12.12		31.03.13		30.06.13		30.09.13
Balance sheet
Customer loans**		9,106		9,191		9,659		9,732		16,188		15,983		16,298
Trading portfolio (w/o loans)		769		871		399		175		665		658		561
Available-for-sale financial assets		2,832		2,634		2,998		2,876		5,150		4,596		4,861
Due from credit institutions**		368		549		423		394		352		421		821
Intangible assets and property and equipment		187		175		140		146		242		223		220
Other assets		1,100		698		1,059		1,527		1,938		1,252		2,046
Total assets/liabilities & shareholders’ equity		14,363		14,119		14,678		14,850		24,535		23,133		24,805
Customer deposits**		10,028		10,463		11,035		11,217		17,794		16,591		17,404
Marketable debt securities**		—		—		—		—		—		—		—
Subordinated debt**		100		100		100		100		335		331		333
Insurance liabilities		—		—		—		—		—		—		—
Due to credit institutions**		1,690		1,109		713		478		1,578		1,712		2,577
Other liabilities		677		773		1,047		1,258		2,839		2,708		2,654
Shareholders’ equity***		1,867		1,673		1,782		1,796		1,989		1,791		1,837
Other customer funds under management		2,248		2,232		2,345		2,594		2,554		2,631		2,708
Mutual funds		2,059		2,059		2,188		2,443		2,428		2,529		2,600
Pension funds		—		—		—		—		—		—		—
Managed portfolios		188		173		157		150		126		102		109
Customer funds under management		12,376		12,796		13,480		13,911		20,684		19,554		20,445
**        Including all on-balance sheet balances for this item ***      Not including profit of the year
Other information
NPL ratio		4.74		4.93		4.69		4.72		7.39		8.08		7.75
NPL coverage		66.3		62.1		64.0		68.3		67.6		59.3		64.1
Spread (Retail Banking)		4.56		4.59		4.57		4.44		3.14		3.17		3.16
Loan spreads		3.29		3.33		3.41		3.48		2.41		2.45		2.43
Deposit spreads		1.27		1.26		1.16		0.96		0.73		0.72		0.73

Poland

PLN million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		2,416			1,688			729			43.2
Net fees		1,320			1,020			300			29.4
Gains (losses) on financial transactions		435			161			274			170.2
Other operating income*		47			65			(18	)		(27.6	)
Gross income		4,219			2,934			1,285			43.8
Operating expenses		(1,849	)		(1,326	)		(522	)		39.4
General administrative expenses		(1,676	)		(1,218	)		(458	)		37.6
Personnel		(998	)		(722	)		(276	)		38.3
Other general administrative expenses		(678	)		(496	)		(182	)		36.7
Depreciation and amortisation		(173	)		(108	)		(64	)		59.1
Net operating income		2,370			1,608			762			47.4
Net loan-loss provisions		(539	)		(336	)		(203	)		60.6
Other income		(5	)		10			(15	)		—
Profit before taxes		1,825			1,281			544			42.5
Tax on profit		(354	)		(259	)		(96	)		36.9
Profit from continuing operations		1,471			1,022			449			43.9
Net profit from discontinued operations		—			—			—			—
Consolidated profit		1,471			1,022			449			43.9
Minority interests		374			33			341			—
Attributable profit to the Group		1,097			990			107			10.9

* Including dividends, income from equity-accounted method and other operating income/expenses

					Variation
	30.09.13		30.09.12		Amount			%
Balance sheet
Customer loans**		68,920		39,639		29,281			73.9
Trading portfolio (w/o loans)		2,371		1,639		733			44.7
Available-for-sale financial assets		20,555		12,303		8,251			67.1
Due from credit institutions**		3,470		1,735		1,734			99.9
Intangible assets and property and equipment		928		573		356			62.1
Other assets		8,651		4,346		4,305			99.1
Total assets/liabilities & shareholders’ equity		104,895		60,235		44,660			74.1
Customer deposits**		73,596		45,284		28,312			62.5
Marketable debt securities**		—		—		—			—
Subordinated debt**		1,410		411		998			242.8
Insurance liabilities		—		—		—			—
Due to credit institutions**		10,898		2,928		7,970			272.2
Other liabilities		11,222		4,298		6,924			161.1
Shareholders’ equity***		7,770		7,314		456			6.2
Other customer funds under management		11,453		9,623		1,829			19.0
Mutual funds		10,994		8,977		2,016			22.5
Pension funds		—		—		—			—
Managed portfolios		459		646		(187	)		(28.9	)
Customer funds under management		86,458		55,318		31,140			56.3

** Including all on-balance sheet balances for this item

*** Not including profit of the year

Poland

PLN million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		546			569			573			575			750			802			865
Net fees		330			341			349			365			431			444			445
Gains (losses) on financial transactions		41			66			53			171			145			123			167
Other operating income*		5			55			4			1			(3	)		59			(8	)
Gross income		923			1,032			979			1,111			1,323			1,427			1,469
Operating expenses		(443	)		(442	)		(441	)		(453	)		(656	)		(605	)		(588	)
General administrative expenses		(406	)		(408	)		(404	)		(418	)		(597	)		(546	)		(533	)
Personnel		(242	)		(242	)		(237	)		(255	)		(351	)		(326	)		(320	)
Other general administrative expenses		(164	)		(166	)		(167	)		(163	)		(246	)		(219	)		(213	)
Depreciation and amortisation		(37	)		(35	)		(36	)		(35	)		(59	)		(59	)		(55	)
Net operating income		480			589			538			659			667			823			881
Net loan-loss provisions		(85	)		(137	)		(114	)		(134	)		(174	)		(216	)		(150	)
Other income		8			(0	)		1			(13	)		(21	)		24			(8	)
Profit before taxes		403			452			426			512			471			631			723
Tax on profit		(87	)		(84	)		(87	)		(105	)		(94	)		(114	)		(146	)
Profit from continuing operations		316			368			339			406			378			517			577
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		316			368			339			406			378			517			577
Minority interests		9			11			12			20			86			136			153
Attributable profit to the Group		307			356			327			387			292			381			424
*       Including dividends, income from equity-accounted method and other operating income/expenses
	31.03.12			30.06.12			30.09.12			31.12.12			31.03.13			30.06.13			30.09.13
Balance sheet
Customer loans**		37,811			39,052			39,639			39,649			67,672			69,326			68,920
Trading portfolio (w/o loans)		3,193			3,702			1,639			711			2,780			2,853			2,371
Available-for-sale financial assets		11,760			11,191			12,303			11,716			21,530			19,936			20,555
Due from credit institutions**		1,528			2,333			1,735			1,606			1,471			1,827			3,470
Intangible assets and property and equipment		776			744			573			596			1,013			967			928
Other assets		4,569			2,965			4,346			6,222			8,101			5,430			8,651
Total assets/liabilities & shareholders’ equity		59,638			59,987			60,235			60,500			102,566			100,340			104,895
Customer deposits**		41,640			44,457			45,284			45,698			74,388			71,966			73,596
Marketable debt securities**		—			—			—			—			—			—			—
Subordinated debt**		416			426			411			409			1,401			1,436			1,410
Insurance liabilities		—			—			—			—			—			—			—
Due to credit institutions**		7,018			4,713			2,928			1,949			6,597			7,425			10,898
Other liabilities		2,811			3,283			4,298			5,126			11,867			11,745			11,222
Shareholders’ equity***		7,753			7,108			7,314			7,319			8,314			7,768			7,770
Other customer funds under management		9,332			9,483			9,623			10,566			10,677			11,414			11,453
Mutual funds		8,550			8,749			8,977			9,954			10,152			10,969			10,994
Pension funds		—			—			—			—			—			—			—
Managed portfolios		783			734			646			613			526			444			459
Customer funds under management		51,388			54,366			55,318			56,673			86,466			84,816			86,458

** Including all on-balance sheet balances for this item

*** Not including profit of the year

Santander Consumer Finance

EUR million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		1,761			1,785			(25	)		(1.4	)
Net fees		597			598			(1	)		(0.1	)
Gains (losses) on financial transactions		1			(11	)		12			—
Other operating income*		(7	)		(1	)		(6	)		635.3
Gross income		2,352			2,372			(19	)		(0.8	)
Operating expenses		(1,038	)		(1,021	)		(16	)		1.6
General administrative expenses		(881	)		(908	)		27			(2.9	)
Personnel		(483	)		(465	)		(19	)		4.1
Other general administrative expenses		(398	)		(443	)		46			(10.3	)
Depreciation and amortisation		(157	)		(114	)		(43	)		37.7
Net operating income		1,315			1,350			(36	)		(2.6	)
Net loan-loss provisions		(460	)		(549	)		89			(16.2	)
Other income		(65	)		(42	)		(23	)		55.5
Profit before taxes		790			760			30			4.0
Tax on profit		(179	)		(166	)		(13	)		7.7
Profit from continuing operations		611			594			17			2.9
Net profit from discontinued operations		(0	)		(2	)		2			(83.0	)
Consolidated profit		611			592			19			3.2
Minority interests		26			29			(4	)		(12.5	)
Attributable profit to the Group		585			562			23			4.1

* Including dividends, income from equity-accounted method and other operating income/expenses

					Variation
	30.09.13		30.09.12		Amount			%
Balance sheet
Customer loans**		55,898		56,822		(924	)		(1.6	)
Trading portfolio (w/o loans)		904		1,520		(616	)		(40.5	)
Available-for-sale financial assets		598		329		269			81.8
Due from credit institutions**		10,966		12,156		(1,190	)		(9.8	)
Intangible assets and property and equipment		940		927		13			1.4
Other assets		2,386		2,569		(182	)		(7.1	)
Total assets/liabilities & shareholders’ equity		71,692		74,323		(2,631	)		(3.5	)
Customer deposits**		30,726		33,087		(2,360	)		(7.1	)
Marketable debt securities**		8,380		4,747		3,633			76.5
Subordinated debt**		10		19		(9	)		(48.3	)
Insurance liabilities		—		—		—			—
Due to credit institutions**		17,627		21,018		(3,390	)		(16.1	)
Other liabilities		3,853		4,578		(725	)		(15.8	)
Shareholders’ equity***		11,094		10,874		221			2.0
Other customer funds under management		6		6		0			6.4
Mutual funds		2		2		(0	)		(8.0	)
Pension funds		4		4		1			13.8
Managed portfolios		—		—		—			—
Customer funds under management		39,123		37,859		1,264			3.3

** Including all on-balance sheet balances for this item

*** Not including profit of the year

Ratios (%) and other data
ROE	6.95	6.93	0.02 p.
Efficiency ratio (with amortisations)	44.1	43.1	1.0 p.
NPL ratio	3.96	3.96	—
NPL coverage	109.2	109.7	(0.5 p.	)
Number of employees	11,869	12,604	(735	)	(5.8	)
Number of branches	635	638	(3	)	(0.5	)

Santander Consumer Finance

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		611			580			594			604			587			582			592
Net fees		204			198			196			180			192			197			207
Gains (losses) on financial transactions		(5	)		2			(8	)		(4	)		0			(1	)		2
Other operating income*		0			1			(2	)		(9	)		(3	)		(4	)		(0	)
Gross income		810			782			780			770			776			775			801
Operating expenses		(338	)		(337	)		(347	)		(360	)		(351	)		(341	)		(345	)
General administrative expenses		(303	)		(300	)		(305	)		(308	)		(300	)		(288	)		(292	)
Personnel		(150	)		(156	)		(159	)		(159	)		(161	)		(159	)		(163	)
Other general administrative expenses		(153	)		(144	)		(146	)		(149	)		(139	)		(129	)		(130	)
Depreciation and amortisation		(35	)		(37	)		(42	)		(52	)		(51	)		(53	)		(53	)
Net operating income		472			445			433			410			425			434			456
Net loan-loss provisions		(176	)		(199	)		(174	)		(204	)		(171	)		(131	)		(158	)
Other income		(18	)		(6	)		(17	)		1			(21	)		(29	)		(15	)
Profit before taxes		278			240			242			207			233			274			283
Tax on profit		(62	)		(50	)		(53	)		(35	)		(49	)		(64	)		(66	)
Profit from continuing operations		215			190			189			172			184			210			217
Net profit from discontinued operations		1			(4	)		1			(5	)		—			(0	)		(0	)
Consolidated profit		216			186			190			167			184			210			217
Minority interests		10			10			9			5			7			9			9
Attributable profit to the Group		206			176			181			162			176			201			208
*       Including dividends, income from equity-accounted method and other operating income/expenses
	31.03.12			30.06.12			30.09.12			31.12.12			31.03.13			30.06.13			30.09.13
Balance sheet
Customer loans**		56,306			56,834			56,822			56,683			56,241			55,995			55,898
Trading portfolio (w/o loans)		1,186			1,431			1,520			1,339			1,224			925			904
Available-for-sale financial assets		1,174			775			329			228			553			606			598
Due from credit institutions**		9,149			9,321			12,156			11,502			10,336			10,471			10,966
Intangible assets and property and equipment		842			852			927			999			984			966			940
Other assets		2,801			2,522			2,569			3,321			2,704			2,596			2,386
Total assets/liabilities & shareholders’ equity		71,458			71,734			74,323			74,071			72,041			71,559			71,692
Customer deposits**		33,180			32,702			33,087			31,892			31,496			30,986			30,726
Marketable debt securities**		5,908			5,361			4,747			6,083			6,420			7,045			8,380
Subordinated debt**		68			72			19			10			9			11			10
Insurance liabilities		—			—			—			—			—			—			—
Due to credit institutions**		17,210			18,647			21,018			20,506			18,839			18,668			17,627
Other liabilities		3,918			4,070			4,578			4,530			3,898			3,695			3,853
Shareholders’ equity***		11,173			10,882			10,874			11,050			11,379			11,154			11,094
Other customer funds under management		6			6			6			6			6			6			6
Mutual funds		2			2			2			2			2			2			2
Pension funds		4			4			4			4			4			4			4
Managed portfolios		—			—			—			—			—			—			—
Customer funds under management		39,163			38,140			37,859			37,991			37,931			38,049			39,123
**       Including all on-balance sheet balances for this item ***     Not including profit of the year
Other information
NPL ratio		4.05			3.88			3.96			3.90			3.98			4.04			3.96
NPL coverage		108.3			110.7			109.7			109.5			108.7			106.9			109.2
Loan spreads		4.51			4.57			4.67			4.73			4.76			4.83			4.93

Spain’s run-off real estate

EUR million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		37			54			(18	)		(32.9	)
Net fees		14			32			(18	)		(56.4	)
Gains (losses) on financial transactions		1			4			(3	)		(76.6	)
Other operating income*		(46	)		(73	)		27			(36.7	)
Gross income		6			18			(13	)		(69.7	)
Operating expenses		(131	)		(144	)		14			(9.4	)
General administrative expenses		(124	)		(138	)		14			(10.1	)
Personnel		(33	)		(34	)		1			(3.4	)
Other general administrative expenses		(92	)		(104	)		13			(12.3	)
Depreciation and amortisation		(6	)		(6	)		(0	)		6.2
Net operating income		(125	)		(126	)		1			(0.8	)
Net loan-loss provisions		(230	)		(234	)		4			(1.8	)
Other income		(349	)		(279	)		(70	)		25.1
Ordinary profit before taxes		(704	)		(639	)		(65	)		10.1
Tax on profit		211			192			19			10.1
Ordinary profit from continuing operations		(493	)		(447	)		(45	)		10.1
Net profit from discontinued operations		—			—			—			—
Ordinary consolidated profit		(493	)		(447	)		(45	)		10.1
Minority interests		—			—			—			—
Ordinary attributable profit to the Group		(493	)		(447	)		(45	)		10.1
Net capital gains and provisions		—			(3,453	)		3,453			(100.0	)
Attributable profit to the Group		(493	)		(3,900	)		3,408			(87.4	)

* Including dividends, income from equity-accounted method and other operating income/expenses

					Variation
	30.09.13		30.09.12		Amount			%
Balance sheet
Customer loans**		6,246		10,598		(4,352	)		(41.1	)
Trading portfolio (w/o loans)		—		—		—			—
Available-for-sale financial assets		207		—		207			—
Due from credit institutions**		—		—		—			—
Intangible assets and property and equipment		—		—		—			—
Other assets		4,966		4,855		110			2.3
Total assets/liabilities & shareholders’ equity		11,420		15,453		(4,034	)		(26.1	)
Customer deposits**		217		259		(42	)		(16.2	)
Marketable debt securities**		2		9		(6	)		(72.4	)
Subordinated debt**		—		—		—			—
Insurance liabilities		—		—		—			—
Due to credit institutions**		0		0		0			66.7
Other liabilities		9,743		13,495		(3,752	)		(27.8	)
Shareholders’ equity***		1,457		1,691		(234	)		(13.8	)
Other customer funds under management		154		168		(14	)		(8.3	)
Mutual funds		153		167		(14	)		(8.4	)
Pension funds		1		1		0			14.3
Managed portfolios		—		—		—			—
Customer funds under management		373		436		(62	)		(14.3	)

** Including all on-balance sheet balances for this item

*** Not including profit of the year

Spain’s run-off real estate

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		23			14			18			20			27			12			(3	)
Net fees		12			12			8			9			9			2			3
Gains (losses) on financial transactions		1			2			1			0			1			(0	)		(0	)
Other operating income*		(13	)		(13	)		(46	)		(30	)		(16	)		(23	)		(8	)
Gross income		23			14			(18	)		(1	)		22			(8	)		(8	)
Operating expenses		(48	)		(48	)		(48	)		(48	)		(40	)		(49	)		(41	)
General administrative expenses		(46	)		(46	)		(46	)		(46	)		(38	)		(47	)		(39	)
Personnel		(11	)		(11	)		(11	)		(11	)		(11	)		(10	)		(11	)
Other general administrative expenses		(35	)		(35	)		(35	)		(35	)		(26	)		(37	)		(28	)
Depreciation and amortisation		(2	)		(2	)		(2	)		(2	)		(2	)		(2	)		(2	)
Net operating income		(25	)		(34	)		(67	)		(49	)		(19	)		(57	)		(50	)
Net loan-loss provisions		(43	)		(93	)		(97	)		(136	)		(114	)		(49	)		(67	)
Other income		(92	)		(118	)		(69	)		(116	)		(118	)		(125	)		(106	)
Ordinary profit before taxes		(161	)		(246	)		(233	)		(302	)		(250	)		(231	)		(222	)
Tax on profit		48			74			70			91			75			69			67
Ordinary profit from continuing operations		(113	)		(172	)		(163	)		(211	)		(175	)		(162	)		(156	)
Net profit from discontinued operations		—			—			—			—			—			—			—
Ordinary consolidated profit		(113	)		(172	)		(163	)		(211	)		(175	)		(162	)		(156	)
Minority interests		—			—			—			—			—			—			—
Ordinary attributable profit to the Group		(113	)		(172	)		(163	)		(211	)		(175	)		(162	)		(156	)
Net capital gains and provisions		—			(1,986	)		(1,467	)		(657	)		—			—			—
Attributable profit to the Group		(113	)		(2,158	)		(1,630	)		(869	)		(175	)		(162	)		(156	)
*       Including dividends, income from equity-accounted method and other operating income/expenses
	31.03.12			30.06.12			30.09.12			31.12.12			31.03.13			30.06.13			30.09.13
Balance sheet
Customer loans**		17,389			14,070			10,598			7,298			6,844			6,507			6,246
Trading portfolio (w/o loans)		—			—			—			—			—			—			—
Available-for-sale financial assets		—			—			—			164			207			207			207
Due from credit institutions**		—			—			—			—			—			—			—
Intangible assets and property and equipment		—			—			—			—			—			—			—
Other assets		5,193			4,956			4,855			4,815			4,885			4,866			4,966
Total assets/liabilities & shareholders’ equity		22,582			19,026			15,453			12,277			11,936			11,580			11,420
Customer deposits**		299			304			259			289			225			199			217
Marketable debt securities**		14			7			9			6			6			4			2
Subordinated debt**		—			—			—			—			—			—			—
Insurance liabilities		—			—			—			—			—			—			—
Due to credit institutions**		0			0			0			0			0			0			0
Other liabilities		20,494			16,995			13,495			10,330			10,150			9,864			9,743
Shareholders’ equity***		1,775			1,720			1,691			1,652			1,555			1,513			1,457
Other customer funds under management		168			167			168			165			161			159			154
Mutual funds		167			166			167			164			160			158			153
Pension funds		1			1			1			1			1			0			1
Managed portfolios		—			—			—			—			—			—			—
Customer funds under management		481			478			436			460			392			361			373

** Including all on-balance sheet balances for this item

*** Not including profit of the year

United Kingdom

EUR million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		2,489			2,540			(51	)		(2.0	)
Net fees		749			872			(123	)		(14.1	)
Gains (losses) on financial transactions		318			306			12			4.0
Other operating income*		18			15			2			14.0
Gross income		3,573			3,733			(159	)		(4.3	)
Operating expenses		(1,955	)		(2,041	)		86			(4.2	)
General administrative expenses		(1,661	)		(1,745	)		84			(4.8	)
Personnel		(1,033	)		(1,131	)		98			(8.7	)
Other general administrative expenses		(627	)		(614	)		(14	)		2.2
Depreciation and amortisation		(294	)		(296	)		1			(0.4	)
Net operating income		1,618			1,692			(74	)		(4.4	)
Net loan-loss provisions		(436	)		(607	)		171			(28.2	)
Other income		(170	)		(134	)		(36	)		26.9
Ordinary profit before taxes		1,013			952			61			6.4
Tax on profit		(206	)		(225	)		19			(8.5	)
Ordinary profit from continuing operations		807			726			80			11.1
Net profit from discontinued operations		(14	)		52			(66	)		—
Ordinary consolidated profit		793			778			14			1.9
Minority interests		0			0			(0	)		(60.0	)
Ordinary attributable profit to the Group		793			778			14			1.9
Net capital gains and provisions		—			81			(81	)		(100.0	)
Attributable profit to the Group		793			859			(66	)		(7.7	)

* Including dividends, income from equity-accounted method and other operating income/expenses

					Variation
	30.09.13		30.09.12		Amount			%
Balance sheet
Customer loans**		237,138		270,051		(32,912	)		(12.2	)
Trading portfolio (w/o loans)		35,645		43,586		(7,940	)		(18.2	)
Available-for-sale financial assets		5,387		6,775		(1,388	)		(20.5	)
Due from credit institutions**		23,814		20,568		3,246			15.8
Intangible assets and property and equipment		2,406		2,472		(66	)		(2.7	)
Other assets		47,379		47,201		178			0.4
Total assets/liabilities & shareholders’ equity		351,771		390,653		(38,883	)		(10.0	)
Customer deposits**		197,252		213,508		(16,255	)		(7.6	)
Marketable debt securities**		67,086		75,963		(8,877	)		(11.7	)
Subordinated debt**		4,640		5,720		(1,080	)		(18.9	)
Insurance liabilities		—		—		—			—
Due to credit institutions**		32,434		34,745		(2,312	)		(6.7	)
Other liabilities		37,221		47,195		(9,973	)		(21.1	)
Shareholders’ equity***		13,138		13,524		(386	)		(2.9	)
Other customer funds under management		9,572		16,243		(6,671	)		(41.1	)
Mutual funds		9,572		16,243		(6,671	)		(41.1	)
Pension funds		—		—		—			—
Managed portfolios		—		—		—			—
Customer funds under management		278,550		311,433		(32,883	)		(10.6	)

** Including all on-balance sheet balances for this item

*** Not including profit of the year

Ratios (%) and other data
ROE**	8.09	7.80	0.29 p.
Efficiency ratio (with amortisations)	54.7	54.7	0.0 p.
NPL ratio	1.98	1.94	0.04 p.
NPL coverage	41.6	44.8	(3.2 p.	)
Number of employees	25,375	26,683	(1,308	)	(4.9	)
Number of branches	1,191	1,266	(75	)	(5.9	)

United Kingdom

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		901			821			818			796			803			809			877
Net fees		282			290			300			318			249			256			243
Gains (losses) on financial transactions		111			125			69			55			86			161			71
Other operating income*		9			6			0			4			6			7			6
Gross income		1,303			1,243			1,187			1,174			1,144			1,233			1,197
Operating expenses		(662	)		(688	)		(691	)		(649	)		(658	)		(667	)		(630	)
General administrative expenses		(569	)		(599	)		(577	)		(566	)		(560	)		(571	)		(529	)
Personnel		(364	)		(375	)		(392	)		(361	)		(354	)		(352	)		(327	)
Other general administrative expenses		(205	)		(224	)		(185	)		(205	)		(206	)		(219	)		(202	)
Depreciation and amortisation		(93	)		(89	)		(114	)		(84	)		(98	)		(96	)		(100	)
Net operating income		641			555			496			525			486			566			567
Net loan-loss provisions		(206	)		(214	)		(187	)		(200	)		(160	)		(121	)		(154	)
Other income		(63	)		(39	)		(31	)		(33	)		(42	)		(103	)		(25	)
Ordinary profit before taxes		372			302			278			292			284			342			387
Tax on profit		(98	)		(71	)		(57	)		(61	)		(60	)		(65	)		(81	)
Ordinary profit from continuing operations		275			231			221			231			224			277			306
Net profit from discontinued operations		17			15			20			25			—			(14	)		(0	)
Ordinary consolidated profit		291			246			242			256			224			263			306
Minority interests		0			0			0			0			0			—			0
Ordinary attributable profit to the Group		291			246			242			256			224			263			306
Net capital gains and provisions		—			—			81			—			—			—			—
Attributable profit to the Group		291			246			322			256			224			263			306
*        Including dividends, income from equity-accounted method and other operating income/expenses
	31.03.12			30.06.12			30.09.12			31.12.12			31.03.13			30.06.13			30.09.13
Balance sheet
Customer loans**		259,637			274,325			270,051			249,157			242,425			238,223			237,138
Trading portfolio (w/o loans)		36,225			39,740			43,586			38,177			37,669			34,501			35,645
Available-for-sale financial assets		996			6,012			6,775			6,718			6,400			6,041			5,387
Due from credit institutions**		17,748			17,087			20,568			18,124			21,002			16,081			23,814
Intangible assets and property and equipment		2,286			2,423			2,472			2,561			2,445			2,379			2,406
Other assets		48,789			46,648			47,201			44,321			44,836			49,670			47,379
Total assets/liabilities & shareholders’ equity		365,681			386,234			390,653			359,058			354,778			346,894			351,771
Customer deposits**		191,727			211,192			213,508			194,452			194,378			195,995			197,252
Marketable debt securities**		74,322			80,635			75,963			73,919			69,625			66,940			67,086
Subordinated debt**		8,086			8,508			5,720			5,534			5,369			5,197			4,640
Insurance liabilities		—			—			—			—			—			—			—
Due to credit institutions**		42,180			33,382			34,745			29,313			28,579			28,207			32,434
Other liabilities		36,390			39,095			47,195			42,689			43,596			37,458			37,221
Shareholders’ equity***		12,976			13,423			13,524			13,152			13,231			13,097			13,138
Other customer funds under management		15,674			16,110			16,243			13,919			12,638			10,687			9,572
Mutual funds		15,674			16,110			16,243			13,919			12,638			10,687			9,572
Pension funds		—			—			—			—			—			—			—
Managed portfolios		—			—			—			—			—			—			—
Customer funds under management		289,809			316,445			311,433			287,823			282,009			278,820			278,550
**        Including all on-balance sheet balances for this item ***      Not including profit of the year
Other information
NPL ratio		1.82			1.83			1.94			2.05			2.03			2.01			1.98
NPL coverage		37.5			37.5			44.8			44.1			42.1			42.1			41.6
Spread (Retail Banking)		1.47			1.36			1.34			1.39			1.53			1.63			1.85
Loan spreads		2.49			2.54			2.60			2.66			2.78			2.80			2.85
Deposit spreads		(1.02	)		(1.18	)		(1.26	)		(1.27	)		(1.25	)		(1.17	)		(1.00	)

United Kingdom

£ million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		2,120			2,062			59			2.9
Net fees		638			707			(70	)		(9.9	)
Gains (losses) on financial transactions		271			248			23			9.2
Other operating income*		15			13			2			19.6
Gross income		3,044			3,030			14			0.5
Operating expenses		(1,665	)		(1,656	)		(9	)		0.5
General administrative expenses		(1,415	)		(1,416	)		2			(0.1	)
Personnel		(880	)		(918	)		38			(4.1	)
Other general administrative expenses		(534	)		(498	)		(36	)		7.3
Depreciation and amortisation		(251	)		(240	)		(11	)		4.5
Net operating income		1,379			1,373			5			0.4
Net loan-loss provisions		(371	)		(492	)		121			(24.6	)
Other income		(145	)		(109	)		(36	)		33.2
Ordinary profit before taxes		863			772			91			11.7
Tax on profit		(176	)		(183	)		7			(3.9	)
Ordinary profit from continuing operations		687			590			98			16.6
Net profit from discontinued operations		(12	)		42			(54	)		—
Ordinary consolidated profit		675			632			44			6.9
Minority interests		0			0			(0	)		(58.0	)
Ordinary attributable profit to the Group		675			632			44			6.9
Net capital gains and provisions		—			65			(65	)		(100.0	)
Attributable profit to the Group		675			697			(22	)		(3.1	)

* Including dividends, income from equity-accounted method and other operating income/expenses

					Variation
	30.09.13		30.09.12		Amount			%
Balance sheet
Customer loans**		198,259		215,514		(17,255	)		(8.0	)
Trading portfolio (w/o loans)		29,801		34,784		(4,982	)		(14.3	)
Available-for-sale financial assets		4,504		5,407		(903	)		(16.7	)
Due from credit institutions**		19,910		16,415		3,495			21.3
Intangible assets and property and equipment		2,012		1,973		39			2.0
Other assets		39,611		37,669		1,943			5.2
Total assets/liabilities & shareholders’ equity		294,098		311,761		(17,663	)		(5.7	)
Customer deposits**		164,913		170,390		(5,477	)		(3.2	)
Marketable debt securities**		56,087		60,622		(4,535	)		(7.5	)
Subordinated debt**		3,879		4,565		(686	)		(15.0	)
Insurance liabilities		—		—		—			—
Due to credit institutions**		27,116		27,729		(612	)		(2.2	)
Other liabilities		31,119		37,664		(6,545	)		(17.4	)
Shareholders’ equity***		10,984		10,792		191			1.8
Other customer funds under management		8,003		12,963		(4,960	)		(38.3	)
Mutual funds		8,003		12,963		(4,960	)		(38.3	)
Pension funds		—		—		—			—
Managed portfolios		—		—		—			—
Customer funds under management		232,882		248,539		(15,658	)		(6.3	)

** Including all on-balance sheet balances for this item

*** Not including profit of the year

United Kingdom

£ million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		752			664			645			643			683			688			749
Net fees		236			235			237			257			212			218			208
Gains (losses) on financial transactions		93			102			54			44			73			137			61
Other operating income*		7			5			0			4			5			6			5
Gross income		1,088			1,006			936			947			973			1,048			1,022
Operating expenses		(552	)		(558	)		(546	)		(524	)		(560	)		(567	)		(538	)
General administrative expenses		(475	)		(485	)		(456	)		(457	)		(476	)		(486	)		(452	)
Personnel		(304	)		(304	)		(310	)		(291	)		(301	)		(300	)		(279	)
Other general administrative expenses		(171	)		(181	)		(146	)		(165	)		(175	)		(186	)		(173	)
Depreciation and amortisation		(77	)		(72	)		(90	)		(67	)		(83	)		(81	)		(86	)
Net operating income		535			448			390			423			413			481			484
Net loan-loss provisions		(172	)		(173	)		(147	)		(161	)		(137	)		(103	)		(132	)
Other income		(53	)		(32	)		(24	)		(27	)		(35	)		(87	)		(22	)
Ordinary profit before taxes		311			244			218			236			241			291			330
Tax on profit		(81	)		(57	)		(44	)		(49	)		(51	)		(56	)		(69	)
Ordinary profit from continuing operations		229			186			174			187			191			235			261
Net profit from discontinued operations		14			12			16			20			—			(12	)		(0	)
Ordinary consolidated profit		243			198			190			207			191			224			261
Minority interests		0			0			0			0			0			(0	)		0
Ordinary attributable profit to the Group		243			198			190			207			191			224			261
Net capital gains and provisions		—			—			65			(0	)		—			—			—
Attributable profit to the Group		243			198			256			207			191			224			261
*       Including dividends, income from equity-accounted method and other operating income/expenses
	31.03.12			30.06.12			30.09.12			31.12.12			31.03.13			30.06.13			30.09.13
Balance sheet
Customer loans**		216,512			221,325			215,514			203,337			204,994			204,204			198,259
Trading portfolio (w/o loans)		30,208			32,062			34,784			31,156			31,853			29,574			29,801
Available-for-sale financial assets		831			4,851			5,407			5,483			5,412			5,178			4,504
Due from credit institutions**		14,800			13,786			16,415			14,791			17,760			13,784			19,910
Intangible assets and property and equipment		1,906			1,955			1,973			2,090			2,068			2,039			2,012
Other assets		40,685			37,635			37,669			36,171			37,913			42,577			39,611
Total assets/liabilities & shareholders’ equity		304,941			311,614			311,761			293,028			300,000			297,358			294,098
Customer deposits**		159,881			170,390			170,390			158,692			164,366			168,007			164,913
Marketable debt securities**		61,977			65,056			60,622			60,325			58,875			57,381			56,087
Subordinated debt**		6,743			6,864			4,565			4,516			4,540			4,455			3,879
Insurance liabilities		—			—			—			—			—			—			—
Due to credit institutions**		35,173			26,932			27,729			23,922			24,166			24,179			27,116
Other liabilities		30,346			31,541			37,664			34,838			36,865			32,109			31,119
Shareholders’ equity***		10,821			10,830			10,792			10,733			11,188			11,227			10,984
Other customer funds under management		13,070			12,997			12,963			11,359			10,686			9,161			8,003
Mutual funds		13,070			12,997			12,963			11,359			10,686			9,161			8,003
Pension funds		—			—			—			—			—			—			—
Managed portfolios		—			—			—			—			—			—			—
Customer funds under management		241,671			255,308			248,539			234,893			238,467			239,004			232,882

** Including all on-balance sheet balances for this item

*** Not including profit of the year

Latin America

EUR million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		11,625			13,653			(2,028	)		(14.9	)
Net fees		3,679			3,831			(152	)		(4.0	)
Gains (losses) on financial transactions		878			854			24			2.8
Other operating income*		1			(93	)		95			—
Gross income		16,184			18,245			(2,061	)		(11.3	)
Operating expenses		(6,518	)		(6,804	)		285			(4.2	)
General administrative expenses		(5,833	)		(6,163	)		330			(5.4	)
Personnel		(3,255	)		(3,492	)		237			(6.8	)
Other general administrative expenses		(2,578	)		(2,671	)		93			(3.5	)
Depreciation and amortisation		(685	)		(641	)		(45	)		7.0
Net operating income		9,665			11,441			(1,776	)		(15.5	)
Net loan-loss provisions		(5,086	)		(5,619	)		533			(9.5	)
Other income		(356	)		(739	)		383			(51.8	)
Profit before taxes		4,224			5,084			(860	)		(16.9	)
Tax on profit		(943	)		(1,189	)		246			(20.7	)
Profit from continuing operations		3,280			3,895			(614	)		(15.8	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		3,280			3,895			(614	)		(15.8	)
Minority interests		692			621			71			11.4
Attributable profit to the Group		2,589			3,274			(685	)		(20.9	)

* Including dividends, income from equity-accounted method and other operating income/expenses

					Variation
	30.09.13		30.09.12		Amount			%
Balance sheet
Customer loans**		135,832		142,412		(6,580	)		(4.6	)
Trading portfolio (w/o loans)		26,861		27,227		(365	)		(1.3	)
Available-for-sale financial assets		18,926		23,385		(4,459	)		(19.1	)
Due from credit institutions**		27,670		27,972		(302	)		(1.1	)
Intangible assets and property and equipment		3,948		4,378		(430	)		(9.8	)
Other assets		53,205		51,884		1,321			2.5
Total assets/liabilities & shareholders’ equity		266,443		277,258		(10,816	)		(3.9	)
Customer deposits**		132,114		135,000		(2,886	)		(2.1	)
Marketable debt securities**		28,455		26,516		1,939			7.3
Subordinated debt**		3,941		5,850		(1,909	)		(32.6	)
Insurance liabilities		—		—		—			—
Due to credit institutions**		35,950		39,307		(3,357	)		(8.5	)
Other liabilities		43,612		49,654		(6,042	)		(12.2	)
Shareholders’ equity***		22,370		20,932		1,438			6.9
Other customer funds under management		66,798		62,440		4,358			7.0
Mutual funds		52,816		49,972		2,844			5.7
Pension funds		—		—		—			—
Managed portfolios		13,982		12,467		1,514			12.1
Customer funds under management		231,309		229,806		1,503			0.7

** Including all on-balance sheet balances for this item

*** Not including profit of the year

Ratios (%) and other data
ROE	14.32	19.28	(4.96 p.	)
Efficiency ratio (with amortisations)	40.3	37.3	3.0 p.
NPL ratio	5.32	5.31	0.01 p.
NPL coverage	82.9	89.8	(6.9 p.	)
Number of employees	87,708	91,269	(3,561	)	(3.9	)
Number of branches	5,963	5,987	(24	)	(0.4	)

Latin America

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		4,650			4,554			4,449			4,227			4,057			3,996			3,573
Net fees		1,327			1,219			1,285			1,266			1,277			1,276			1,126
Gains (losses) on financial transactions		247			298			309			217			339			210			329
Other operating income*		(49	)		(17	)		(28	)		(21	)		(3	)		9			(4	)
Gross income		6,175			6,055			6,016			5,689			5,669			5,491			5,024
Operating expenses		(2,314	)		(2,192	)		(2,298	)		(2,320	)		(2,195	)		(2,219	)		(2,105	)
General administrative expenses		(2,104	)		(1,986	)		(2,072	)		(2,090	)		(1,962	)		(1,982	)		(1,888	)
Personnel		(1,190	)		(1,136	)		(1,166	)		(1,150	)		(1,109	)		(1,107	)		(1,040	)
Other general administrative expenses		(914	)		(850	)		(907	)		(940	)		(854	)		(876	)		(848	)
Depreciation and amortisation		(209	)		(205	)		(226	)		(230	)		(233	)		(236	)		(217	)
Net operating income		3,861			3,863			3,717			3,369			3,474			3,273			2,919
Net loan-loss provisions		(1,742	)		(2,026	)		(1,851	)		(1,762	)		(1,801	)		(1,758	)		(1,527	)
Other income		(248	)		(255	)		(236	)		(79	)		(64	)		(146	)		(146	)
Profit before taxes		1,872			1,582			1,630			1,528			1,609			1,369			1,246
Tax on profit		(425	)		(362	)		(402	)		(295	)		(347	)		(286	)		(311	)
Profit from continuing operations		1,447			1,220			1,228			1,233			1,262			1,083			935
Net profit from discontinued operations		—			0			(0	)		—			—			—			—
Consolidated profit		1,447			1,220			1,228			1,233			1,262			1,083			935
Minority interests		239			208			173			245			274			215			203
Attributable profit to the Group		1,207			1,012			1,055			988			988			868			733

* Including dividends, income from equity-accounted method and other operating income/expenses

	31.03.12		30.06.12		30.09.12		31.12.12		31.03.13		30.06.13		30.09.13
Balance sheet
Customer loans**		141,411		141,115		142,412		140,090		148,965		140,083		135,832
Trading portfolio (w/o loans)		31,489		32,663		27,227		28,403		32,031		30,540		26,861
Available-for-sale financial assets		24,935		23,886		23,385		23,499		23,744		21,763		18,926
Due from credit institutions**		25,567		23,572		27,972		25,799		36,382		26,400		27,670
Intangible assets and property and equipment		4,355		4,056		4,378		4,490		4,491		4,056		3,948
Other assets		47,985		48,577		51,884		47,346		51,113		48,217		53,205
Total assets/liabilities & shareholders’ equity		275,742		273,870		277,258		269,627		296,726		271,058		266,443
Customer deposits**		143,065		136,183		135,000		134,765		144,487		137,922		132,114
Marketable debt securities**		26,167		26,072		26,516		28,107		30,605		29,036		28,455
Subordinated debt**		6,100		6,017		5,850		5,734		5,781		4,346		3,941
Insurance liabilities		—		—		—		—		—		—		—
Due to credit institutions**		34,632		39,530		39,307		32,131		38,501		32,455		35,950
Other liabilities		42,100		43,796		49,654		48,481		50,653		43,247		43,612
Shareholders’ equity***		23,677		22,272		20,932		20,409		26,698		24,052		22,370
Other customer funds under management		73,185		66,699		62,440		60,831		68,289		63,568		66,798
Mutual funds		59,080		54,013		49,972		48,178		53,690		49,610		52,816
Pension funds		—		—		—		—		—		0		—
Managed portfolios		14,105		12,686		12,467		12,653		14,600		13,958		13,982
Customer funds under management		248,518		234,971		229,806		229,437		249,162		234,872		231,309
**        Including all on-balance sheet balances for this item
***      Not including profit of the year
Other information
NPL ratio		4.67		5.14		5.31		5.42		5.44		5.26		5.32
NPL coverage		91.6		89.5		89.8		87.5		86.7		85.4		82.9

Latin America

Constant EUR million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		11,625			12,372			(747	)		(6.0	)
Net fees		3,679			3,483			196			5.6
Gains (losses) on financial transactions		878			772			106			13.7
Other operating income*		1			(86	)		87			—
Gross income		16,184			16,541			(357	)		(2.2	)
Operating expenses		(6,518	)		(6,188	)		(330	)		5.3
General administrative expenses		(5,833	)		(5,605	)		(228	)		4.1
Personnel		(3,255	)		(3,179	)		(76	)		2.4
Other general administrative expenses		(2,578	)		(2,426	)		(152	)		6.3
Depreciation and amortisation		(685	)		(584	)		(102	)		17.4
Net operating income		9,665			10,353			(687	)		(6.6	)
Net loan-loss provisions		(5,086	)		(5,036	)		(50	)		1.0
Other income		(356	)		(647	)		291			(45.0	)
Profit before taxes		4,224			4,670			(447	)		(9.6	)
Tax on profit		(943	)		(1,076	)		132			(12.3	)
Profit from continuing operations		3,280			3,595			(314	)		(8.7	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		3,280			3,595			(314	)		(8.7	)
Minority interests		692			562			130			23.1
Attributable profit to the Group		2,589			3,033			(444	)		(14.6	)

* Including dividends, income from equity-accounted method and other operating income/expenses

					Variation
	30.09.13		30.09.12		Amount			%
Balance sheet
Customer loans**		135,832		125,749		10,083			8.0
Trading portfolio (w/o loans)		26,861		24,720		2,142			8.7
Available-for-sale financial assets		18,926		20,515		(1,589	)		(7.7	)
Due from credit institutions**		27,670		25,110		2,560			10.2
Intangible assets and property and equipment		3,948		3,805		143			3.8
Other assets		53,205		45,722		7,483			16.4
Total assets/liabilities & shareholders’ equity		266,443		245,621		20,822			8.5
Customer deposits**		132,114		119,356		12,758			10.7
Marketable debt securities**		28,455		23,173		5,283			22.8
Subordinated debt**		3,941		5,106		(1,165	)		(22.8	)
Insurance liabilities		—		—		—			0
Due to credit institutions**		35,950		35,211		739			2.1
Other liabilities		43,612		44,258		(646	)		(1.5	)
Shareholders’ equity***		22,370		18,517		3,853			20.8
Other customer funds under management		66,798		55,692		11,106			19.9
Mutual funds		52,816		44,055		8,761			19.9
Pension funds		—		—		—			0
Managed portfolios		13,982		11,637		2,345			20.2
Customer funds under management		231,309		203,326		27,983			13.8

** Including all on-balance sheet balances for this item

*** Not including profit of the year

Latin America

Constant EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		4,064			4,206			4,102			4,086			3,891			3,887			3,847
Net fees		1,169			1,131			1,183			1,218			1,228			1,242			1,208
Gains (losses) on financial transactions		216			270			285			213			325			207			346
Other operating income*		(42	)		(16	)		(27	)		(23	)		(4	)		9			(4	)
Gross income		5,406			5,591			5,544			5,495			5,441			5,345			5,397
Operating expenses		(2,035	)		(2,033	)		(2,121	)		(2,232	)		(2,110	)		(2,160	)		(2,249	)
General administrative expenses		(1,850	)		(1,842	)		(1,913	)		(2,012	)		(1,886	)		(1,930	)		(2,016	)
Personnel		(1,049	)		(1,055	)		(1,075	)		(1,107	)		(1,066	)		(1,078	)		(1,111	)
Other general administrative expenses		(801	)		(787	)		(838	)		(905	)		(820	)		(852	)		(905	)
Depreciation and amortisation		(185	)		(191	)		(207	)		(220	)		(223	)		(230	)		(232	)
Net operating income		3,371			3,558			3,423			3,262			3,331			3,185			3,149
Net loan-loss provisions		(1,490	)		(1,839	)		(1,706	)		(1,703	)		(1,719	)		(1,709	)		(1,657	)
Other income		(209	)		(225	)		(212	)		(82	)		(59	)		(142	)		(155	)
Profit before taxes		1,672			1,493			1,505			1,477			1,552			1,335			1,337
Tax on profit		(372	)		(338	)		(366	)		(286	)		(333	)		(278	)		(332	)
Profit from continuing operations		1,300			1,156			1,139			1,191			1,220			1,056			1,004
Net profit from discontinued operations		—			0			(0	)		—			—			—			—
Consolidated profit		1,300			1,156			1,139			1,191			1,220			1,056			1,004
Minority interests		209			194			159			239			265			209			217
Attributable profit to the Group		1,091			962			980			951			955			847			787

* Including dividends, income from equity-accounted method and other operating income/expenses

	31.03.12		30.06.12		30.09.12		31.12.12		31.03.13		30.06.13		30.09.13
Balance sheet
Customer loans**		121,891		124,040		125,749		127,463		128,918		133,581		135,832
Trading portfolio (w/o loans)		28,418		29,695		24,720		26,375		28,112		29,163		26,861
Available-for-sale financial assets		21,297		20,799		20,515		21,189		20,312		20,702		18,926
Due from credit institutions**		22,368		21,075		25,110		23,838		31,775		25,238		27,670
Intangible assets and property and equipment		3,612		3,483		3,805		4,024		3,834		3,850		3,948
Other assets		40,094		42,053		45,722		42,895		44,162		45,871		53,205
Total assets/liabilities & shareholders’ equity		237,680		241,144		245,621		245,784		257,112		258,404		266,443
Customer deposits**		123,480		119,928		119,356		122,696		124,950		131,297		132,114
Marketable debt securities**		22,027		22,656		23,173		25,358		26,224		27,713		28,455
Subordinated debt**		5,114		5,225		5,106		5,155		4,952		4,153		3,941
Insurance liabilities		—		—		—		—		—		—		—
Due to credit institutions**		30,387		35,135		35,211		29,484		33,725		31,076		35,950
Other liabilities		36,227		38,614		44,258		44,492		44,110		41,253		43,612
Shareholders’ equity***		20,445		19,586		18,517		18,599		23,153		22,913		22,370
Other customer funds under management		63,098		58,781		55,692		55,901		59,561		60,739		66,798
Mutual funds		49,871		47,216		44,055		43,844		46,175		47,276		52,816
Pension funds		—		—		—		—		—		0		—
Managed portfolios		13,227		11,565		11,637		12,057		13,387		13,463		13,982
Customer funds under management		213,718		206,589		203,326		209,110		215,687		223,902		231,309

** Including all on-balance sheet balances for this item

*** Not including profit of the year

Latin America. Results

EUR million

	Gross income							Net operating income								Attributable profit to the Group
	9M ’13		9M ’12		Var. (%)			9M ’13			9M ’12		Var. (%)			9M ’13			9M ’12			Var. (%)
Brazil		10,482		12,759		(17.8	)		6,487			8,345		(22.3	)		1,277			1,671			(23.6	)
Mexico		2,330		2,065		12.9			1,412			1,267		11.4			564			827			(31.8	)
Chile		1,692		1,699		(0.4	)		976			1,007		(3.1	)		316			356			(11.2	)
Argentina		969		905		7.1			520			480		8.2			254			235			7.8
Uruguay		192		172		11.5			71			58		22.0			42			37			15.3
Puerto Rico		240		276		(12.9	)		104			134		(22.6	)		64			39			65.1
Rest		50		127		(60.6	)		(25	)		14		—			(23	)		(2	)		—
Subtotal		15,956		18,003		(11.4	)		9,545			11,305		(15.6	)		2,495			3,164			(21.2	)
Santander Private Banking		228		242		(5.8	)		121			136		(11.4	)		94			110			(14.2	)
Total		16,184		18,245		(11.3	)		9,665			11,441		(15.5	)		2,589			3,274			(20.9	)

Latin America. Results

Constant EUR million

	Gross income							Net operating income								Attributable profit to the Group
	9M ’13		9M ’12		Var. (%)			9M ’13			9M ’12		Var. (%)			9M ’13			9M ’12			Var. (%)
Brazil		10,482		11,249		(6.8	)		6,487			7,357		(11.8	)		1,277			1,473			(13.3	)
Mexico		2,330		2,096		11.2			1,412			1,286		9.8			564			840			(32.8	)
Chile		1,692		1,656		2.2			976			982		(0.6	)		316			347			(8.9	)
Argentina		969		745		30.1			520			395		31.4			254			194			31.0
Uruguay		192		170		12.5			71			58		23.1			42			36			16.3
Puerto Rico		240		268		(10.4	)		104			130		(20.4	)		64			38			69.8
Rest		50		121		(58.5	)		(25	)		12		—			(23	)		(2	)		—
Subtotal		15,956		16,306		(2.1	)		9,545			10,220		(6.6	)		2,495			2,926			(14.7	)
Santander Private Banking		228		236		(3.1	)		121			132		(8.9	)		94			107			(11.8	)
Total		16,184		16,541		(2.2	)		9,665			10,353		(6.6	)		2,589			3,033			(14.6	)

Brazil

EUR million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		7,783			9,866			(2,083	)		(21.1	)
Net fees		2,211			2,372			(161	)		(6.8	)
Gains (losses) on financial transactions		480			596			(115	)		(19.3	)
Other operating income*		7			(74	)		82			—
Gross income		10,482			12,759			(2,277	)		(17.8	)
Operating expenses		(3,995	)		(4,415	)		420			(9.5	)
General administrative expenses		(3,553	)		(3,996	)		443			(11.1	)
Personnel		(1,928	)		(2,227	)		299			(13.4	)
Other general administrative expenses		(1,625	)		(1,769	)		144			(8.1	)
Depreciation and amortisation		(441	)		(419	)		(23	)		5.4
Net operating income		6,487			8,345			(1,858	)		(22.3	)
Net loan-loss provisions		(3,908	)		(4,730	)		822			(17.4	)
Other income		(337	)		(709	)		372			(52.5	)
Profit before taxes		2,242			2,906			(664	)		(22.8	)
Tax on profit		(591	)		(773	)		182			(23.5	)
Profit from continuing operations		1,651			2,133			(482	)		(22.6	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		1,651			2,133			(482	)		(22.6	)
Minority interests		374			462			(88	)		(19.0	)
Attributable profit to the Group		1,277			1,671			(394	)		(23.6	)

* Including dividends, income from equity-accounted method and other operating income/expenses

					Variation
	30.09.13		30.09.12		Amount			%
Balance sheet
Customer loans**		69,395		75,293		(5,898	)		(7.8	)
Trading portfolio (w/o loans)		11,663		9,265		2,398			25.9
Available-for-sale financial assets		12,273		15,553		(3,280	)		(21.1	)
Due from credit institutions**		11,681		12,384		(704	)		(5.7	)
Intangible assets and property and equipment		2,863		3,361		(497	)		(14.8	)
Other assets		31,265		34,554		(3,289	)		(9.5	)
Total assets/liabilities & shareholders’ equity		139,140		150,410		(11,270	)		(7.5	)
Customer deposits**		65,801		69,588		(3,787	)		(5.4	)
Marketable debt securities**		20,000		18,812		1,188			6.3
Subordinated debt**		2,858		4,459		(1,601	)		(35.9	)
Insurance liabilities		—		—		—			—
Due to credit institutions**		14,601		19,594		(4,993	)		(25.5	)
Other liabilities		23,286		25,779		(2,493	)		(9.7	)
Shareholders’ equity***		12,595		12,179		415			3.4
Other customer funds under management		39,962		35,744		4,218			11.8
Mutual funds		36,836		32,577		4,259			13.1
Pension funds		—		—		—			—
Managed portfolios		3,126		3,167		(41	)		(1.3	)
Customer funds under management		128,620		128,602		18			0.0

** Including all on-balance sheet balances for this item

*** Not including profit of the year

Ratios (%) and other data
ROE	12.55	17.75	(5.21 p.	)
Efficiency ratio (with amortisations)	38.1	34.6	3.5 p.
NPL ratio	6.12	6.79	(0.67 p.	)
NPL coverage	92.0	92.0	—
Number of employees	50,409	54,901	(4,492	)	(8.2	)
Number of branches	3,661	3,782	(121	)	(3.2	)

Brazil

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		3,376			3,312			3,178			2,880			2,802			2,713			2,268
Net fees		848			744			780			765			774			786			651
Gains (losses) on financial transactions		170			223			203			120			215			62			203
Other operating income*		(41	)		(16	)		(17	)		(5	)		0			2			5
Gross income		4,353			4,263			4,143			3,760			3,792			3,562			3,127
Operating expenses		(1,537	)		(1,413	)		(1,465	)		(1,454	)		(1,366	)		(1,361	)		(1,268	)
General administrative expenses		(1,401	)		(1,281	)		(1,314	)		(1,301	)		(1,214	)		(1,207	)		(1,132	)
Personnel		(781	)		(712	)		(734	)		(719	)		(677	)		(650	)		(601	)
Other general administrative expenses		(620	)		(569	)		(580	)		(582	)		(536	)		(557	)		(532	)
Depreciation and amortisation		(136	)		(132	)		(151	)		(153	)		(152	)		(154	)		(136	)
Net operating income		2,816			2,851			2,678			2,306			2,426			2,202			1,859
Net loan-loss provisions		(1,490	)		(1,735	)		(1,505	)		(1,394	)		(1,471	)		(1,372	)		(1,065	)
Other income		(222	)		(246	)		(241	)		(102	)		(78	)		(133	)		(126	)
Profit before taxes		1,104			870			933			810			877			697			669
Tax on profit		(283	)		(222	)		(269	)		(164	)		(224	)		(170	)		(198	)
Profit from continuing operations		821			648			664			646			653			527			471
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		821			648			664			646			653			527			471
Minority interests		179			150			133			129			155			107			113
Attributable profit to the Group		641			498			531			518			499			420			358

* Including dividends, income from equity-accounted method and other operating income/expenses

	31.03.12		30.06.12		30.09.12		31.12.12		31.03.13		30.06.13			30.09.13
Balance sheet
Customer loans**		78,083		75,963		75,293		74,511		77,918		71,296			69,395
Trading portfolio (w/o loans)		10,977		11,149		9,265		12,648		11,824		12,276			11,663
Available-for-sale financial assets		15,261		16,204		15,553		16,284		16,766		14,848			12,273
Due from credit institutions**		12,965		10,688		12,384		11,341		15,402		11,171			11,681
Intangible assets and property and equipment		3,262		3,061		3,361		3,357		3,330		2,965			2,863
Other assets		34,529		33,628		34,554		31,128		33,640		32,258			31,265
Total assets/liabilities & shareholders’ equity		155,077		150,692		150,410		149,270		158,880		144,814			139,140
Customer deposits**		76,352		69,095		69,588		69,849		75,162		69,199			65,801
Marketable debt securities**		18,872		19,197		18,812		19,974		21,850		21,453			20,000
Subordinated debt**		4,604		4,441		4,459		4,409		4,438		3,130			2,858
Insurance liabilities		—		—		—		—		—		—			—
Due to credit institutions**		17,199		20,313		19,594		17,400		18,084		14,571			14,601
Other liabilities		24,961		25,247		25,779		25,808		24,354		23,075			23,286
Shareholders’ equity***		13,089		12,399		12,179		11,830		14,992		13,386			12,595
Other customer funds under management		44,407		39,172		35,744		34,813		39,054		35,630			39,962
Mutual funds		41,247		36,066		32,577		31,339		35,498		32,514			36,836
Pension funds		—		—		—		—		—		(0	)		—
Managed portfolios		3,160		3,106		3,167		3,474		3,556		3,116			3,126
Customer funds under management		144,235		131,905		128,602		129,045		140,504		129,412			128,620
**        Including all on-balance sheet balances for this item ***      Not including profit of the year
Other information
NPL ratio		5.76		6.51		6.79		6.86		6.90		6.49			6.12
NPL coverage		90.0		90.1		92.0		90.2		90.4		91.3			92.0
Spread (Retail Banking)		15.17		15.49		14.81		13.92		13.81		13.26			12.77
Loan spreads		14.44		14.84		14.25		13.41		13.09		12.51			11.93
Deposit spreads		0.73		0.65		0.56		0.51		0.72		0.75			0.84

Brazil

R$ million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		21,626			24,169			(2,543	)		(10.5	)
Net fees		6,145			5,811			334			5.7
Gains (losses) on financial transactions		1,335			1,459			(124	)		(8.5	)
Other operating income*		20			(182	)		202			—
Gross income		29,126			31,258			(2,131	)		(6.8	)
Operating expenses		(11,100	)		(10,815	)		(285	)		2.6
General administrative expenses		(9,873	)		(9,789	)		(85	)		0.9
Personnel		(5,359	)		(5,456	)		97			(1.8	)
Other general administrative expenses		(4,515	)		(4,333	)		(182	)		4.2
Depreciation and amortisation		(1,227	)		(1,026	)		(201	)		19.6
Net operating income		18,026			20,443			(2,416	)		(11.8	)
Net loan-loss provisions		(10,860	)		(11,587	)		727			(6.3	)
Other income		(936	)		(1,737	)		801			(46.1	)
Profit before taxes		6,231			7,120			(889	)		(12.5	)
Tax on profit		(1,643	)		(1,894	)		251			(13.3	)
Profit from continuing operations		4,588			5,225			(637	)		(12.2	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		4,588			5,225			(637	)		(12.2	)
Minority interests		1,040			1,132			(92	)		(8.1	)
Attributable profit to the Group		3,548			4,093			(545	)		(13.3	)

* Including dividends, income from equity-accounted method and other operating income/expenses

					Variation
	30.09.13		30.09.12		Amount			%
Balance sheet
Customer loans**		211,002		197,508		13,495			6.8
Trading portfolio (w/o loans)		35,463		24,304		11,159			45.9
Available-for-sale financial assets		37,318		40,800		(3,482	)		(8.5	)
Due from credit institutions**		35,516		32,486		3,030			9.3
Intangible assets and property and equipment		8,706		8,816		(109	)		(1.2	)
Other assets		95,064		90,642		4,422			4.9
Total assets/liabilities & shareholders’ equity		423,071		394,555		28,515			7.2
Customer deposits**		200,074		182,542		17,532			9.6
Marketable debt securities**		60,812		49,347		11,465			23.2
Subordinated debt**		8,691		11,696		(3,005	)		(25.7	)
Insurance liabilities		—		—		—			—
Due to credit institutions**		44,396		51,399		(7,003	)		(13.6	)
Other liabilities		70,802		67,622		3,180			4.7
Shareholders’ equity***		38,296		31,949		6,347			19.9
Other customer funds under management		121,508		93,764		27,744			29.6
Mutual funds		112,002		85,456		26,547			31.1
Pension funds		—		—		—			—
Managed portfolios		9,506		8,308		1,197			14.4
Customer funds under management		391,084		337,349		53,735			15.9

** Including all on-balance sheet balances for this item

*** Not including profit of the year

Brazil

R$ million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		7,817			8,293			8,060			7,710			7,385			7,307			6,934
Net fees		1,964			1,871			1,976			2,036			2,040			2,116			1,988
Gains (losses) on financial transactions		393			554			512			331			568			170			597
Other operating income*		(94	)		(42	)		(45	)		(16	)		1			5			15
Gross income		10,080			10,675			10,502			10,061			9,993			9,599			9,534
Operating expenses		(3,559	)		(3,546	)		(3,710	)		(3,864	)		(3,599	)		(3,664	)		(3,837	)
General administrative expenses		(3,244	)		(3,216	)		(3,328	)		(3,459	)		(3,199	)		(3,250	)		(3,425	)
Personnel		(1,808	)		(1,788	)		(1,860	)		(1,912	)		(1,785	)		(1,752	)		(1,822	)
Other general administrative expenses		(1,436	)		(1,428	)		(1,469	)		(1,547	)		(1,413	)		(1,499	)		(1,603	)
Depreciation and amortisation		(314	)		(330	)		(382	)		(405	)		(400	)		(414	)		(412	)
Net operating income		6,521			7,130			6,792			6,197			6,394			5,935			5,698
Net loan-loss provisions		(3,450	)		(4,318	)		(3,818	)		(3,731	)		(3,878	)		(3,698	)		(3,284	)
Other income		(515	)		(613	)		(608	)		(291	)		(205	)		(356	)		(375	)
Profit before taxes		2,556			2,198			2,366			2,175			2,311			1,881			2,038
Tax on profit		(655	)		(560	)		(679	)		(449	)		(590	)		(459	)		(594	)
Profit from continuing operations		1,901			1,638			1,687			1,726			1,722			1,422			1,444
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		1,901			1,638			1,687			1,726			1,722			1,422			1,444
Minority interests		416			377			339			345			408			289			343
Attributable profit to the Group		1,485			1,260			1,348			1,381			1,314			1,133			1,101

* Including dividends, income from equity-accounted method and other operating income/expenses

	31.03.12		30.06.12		30.09.12		31.12.12		31.03.13		30.06.13			30.09.13
Balance sheet
Customer loans**		189,921		195,893		197,508		201,448		200,273		206,039			211,002
Trading portfolio (w/o loans)		26,699		28,751		24,304		34,195		30,392		35,476			35,463
Available-for-sale financial assets		37,120		41,786		40,800		44,027		43,094		42,911			37,318
Due from credit institutions**		31,535		27,562		32,486		30,661		39,587		32,283			35,516
Intangible assets and property and equipment		7,935		7,893		8,816		9,077		8,560		8,568			8,706
Other assets		83,984		86,720		90,642		84,158		86,464		93,222			95,064
Total assets/liabilities & shareholders’ equity		377,194		388,604		394,555		403,567		408,370		418,499			423,071
Customer deposits**		185,712		178,183		182,542		188,844		193,190		199,979			200,074
Marketable debt securities**		45,902		49,505		49,347		54,002		56,160		61,997			60,812
Subordinated debt**		11,199		11,454		11,696		11,919		11,407		9,046			8,691
Insurance liabilities		—		—		—		—		—		—			—
Due to credit institutions**		41,834		52,383		51,399		47,042		46,482		42,108			44,396
Other liabilities		60,712		65,106		67,622		69,775		62,597		66,685			70,802
Shareholders’ equity***		31,835		31,974		31,949		31,985		38,535		38,685			38,296
Other customer funds under management		108,011		101,016		93,764		94,121		100,381		102,967			121,508
Mutual funds		100,325		93,007		85,456		84,728		91,241		93,961			112,002
Pension funds		—		—		—		—		—		(0	)		—
Managed portfolios		7,685		8,009		8,308		9,393		9,140		9,005			9,506
Customer funds under management		350,824		340,158		337,349		348,886		361,138		373,988			391,084

** Including all on-balance sheet balances for this item

*** Not including profit of the year

Mexico

EUR million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		1,590			1,480			110			7.4
Net fees		615			544			71			13.1
Gains (losses) on financial transactions		145			68			76			111.5
Other operating income*		(19	)		(28	)		8			(29.7	)
Gross income		2,330			2,065			265			12.9
Operating expenses		(918	)		(798	)		(121	)		15.1
General administrative expenses		(825	)		(712	)		(113	)		15.8
Personnel		(456	)		(392	)		(64	)		16.4
Other general administrative expenses		(368	)		(320	)		(48	)		15.1
Depreciation and amortisation		(93	)		(85	)		(8	)		9.4
Net operating income		1,412			1,267			145			11.4
Net loan-loss provisions		(583	)		(308	)		(275	)		89.1
Other income		21			33			(12	)		(37.0	)
Profit before taxes		850			992			(142	)		(14.3	)
Tax on profit		(108	)		(164	)		56			(34.1	)
Profit from continuing operations		742			828			(86	)		(10.4	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		742			828			(86	)		(10.4	)
Minority interests		178			1			177			—
Attributable profit to the Group		564			827			(263	)		(31.8	)

* Including dividends, income from equity-accounted method and other operating income/expenses

					Variation
	30.09.13		30.09.12		Amount			%
Balance sheet
Customer loans**		21,007		21,545		(539	)		(2.5	)
Trading portfolio (w/o loans)		10,306		12,811		(2,505	)		(19.6	)
Available-for-sale financial assets		3,116		3,329		(214	)		(6.4	)
Due from credit institutions**		7,518		7,075		443			6.3
Intangible assets and property and equipment		377		336		42			12.4
Other assets		4,931		4,974		(43	)		(0.9	)
Total assets/liabilities & shareholders’ equity		47,254		50,070		(2,816	)		(5.6	)
Customer deposits**		25,783		24,162		1,621			6.7
Marketable debt securities**		2,456		1,343		1,113			82.9
Subordinated debt**		—		—		—			—
Insurance liabilities		—		—		—			—
Due to credit institutions**		4,472		6,738		(2,265	)		(33.6	)
Other liabilities		11,028		14,397		(3,369	)		(23.4	)
Shareholders’ equity***		3,515		3,431		84			2.4
Other customer funds under management		10,293		10,579		(286	)		(2.7	)
Mutual funds		10,293		10,579		(286	)		(2.7	)
Pension funds		—		—		—			—
Managed portfolios		—		—		—			—
Customer funds under management		38,532		36,084		2,448			6.8

** Including all on-balance sheet balances for this item

*** Not including profit of the year

Ratios (%) and other data
ROE	18.88	25.92	(7.04 p.	)
Efficiency ratio (with amortisations)	39.4	38.6	0.8 p.
NPL ratio	3.58	1.69	1.89 p.
NPL coverage	99.0	175.4	(76.4 p.	)
Number of employees	14,486	13,348	1,138		8.5
Number of branches	1,229	1,123	106		9.4

Mexico

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		477			481			523			526			516			541			533
Net fees		180			164			200			207			215			196			204
Gains (losses) on financial transactions		31			4			33			36			54			60			31
Other operating income*		(10	)		(3	)		(14	)		(21	)		(10	)		3			(12	)
Gross income		677			646			742			749			775			799			756
Operating expenses		(251	)		(251	)		(296	)		(330	)		(301	)		(307	)		(310	)
General administrative expenses		(221	)		(222	)		(269	)		(303	)		(271	)		(274	)		(280	)
Personnel		(128	)		(128	)		(137	)		(142	)		(148	)		(152	)		(156	)
Other general administrative expenses		(94	)		(94	)		(132	)		(160	)		(123	)		(122	)		(124	)
Depreciation and amortisation		(30	)		(29	)		(27	)		(28	)		(30	)		(33	)		(30	)
Net operating income		426			395			446			419			474			492			446
Net loan-loss provisions		(78	)		(101	)		(129	)		(158	)		(142	)		(184	)		(257	)
Other income		(2	)		29			6			22			26			(2	)		(3	)
Profit before taxes		346			324			323			283			357			307			186
Tax on profit		(51	)		(65	)		(48	)		(43	)		(42	)		(44	)		(23	)
Profit from continuing operations		295			259			275			240			316			264			163
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		295			259			275			240			316			264			163
Minority interests		0			0			0			58			74			64			39
Attributable profit to the Group		294			259			274			181			241			199			123

* Including dividends, income from equity-accounted method and other operating income/expenses

	31.03.12		30.06.12		30.09.12		31.12.12		31.03.13		30.06.13		30.09.13
Balance sheet
Customer loans**		19,146		20,454		21,545		20,384		23,279		22,440		21,007
Trading portfolio (w/o loans)		15,296		16,151		12,811		10,470		14,661		12,644		10,306
Available-for-sale financial assets		3,647		3,259		3,329		2,772		2,386		3,192		3,116
Due from credit institutions**		6,328		5,777		7,075		7,672		12,927		5,857		7,518
Intangible assets and property and equipment		378		309		336		380		400		380		377
Other assets		4,431		4,375		4,974		5,209		5,131		4,774		4,931
Total assets/liabilities & shareholders’ equity		49,225		50,325		50,070		46,886		58,785		49,287		47,254
Customer deposits**		26,120		26,033		24,162		24,743		27,387		28,178		25,783
Marketable debt securities**		1,312		1,301		1,343		2,021		2,270		1,534		2,456
Subordinated debt**		—		—		—		—		—		—		—
Insurance liabilities		—		—		—		—		—		—		—
Due to credit institutions**		8,785		8,899		6,738		3,757		8,085		4,828		4,472
Other liabilities		8,569		9,792		14,397		13,026		16,580		10,676		11,028
Shareholders’ equity***		4,438		4,299		3,431		3,340		4,463		4,072		3,515
Other customer funds under management		10,503		10,453		10,579		10,328		11,300		10,789		10,293
Mutual funds		10,503		10,453		10,579		10,328		11,300		10,789		10,293
Pension funds		—		—		—		—		—		—		—
Managed portfolios		—		—		—		—		—		—		—
Customer funds under management		37,936		37,787		36,084		37,091		40,957		40,500		38,532
**       Including all on-balance sheet balances for this item ***     Not including profit of the year Other information
NPL ratio		1.61		1.64		1.69		1.94		1.92		2.20		3.58
NPL coverage		194.9		183.4		175.4		157.3		157.1		142.7		99.0
Spread (Retail Banking)		10.16		10.27		10.26		10.49		10.32		10.05		9.90
Loan spreads		8.20		8.35		8.33		8.49		8.46		8.41		8.34
Deposit spreads		1.96		1.92		1.93		2.00		1.86		1.64		1.56

Mexico

Million pesos

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		26,511			25,060			1,451			5.8
Net fees		10,262			9,208			1,053			11.4
Gains (losses) on financial transactions		2,414			1,159			1,255			108.4
Other operating income*		(324	)		(467	)		144			(30.8	)
Gross income		38,863			34,960			3,904			11.2
Operating expenses		(15,314	)		(13,504	)		(1,810	)		13.4
General administrative expenses		(13,755	)		(12,057	)		(1,698	)		14.1
Personnel		(7,612	)		(6,639	)		(973	)		14.7
Other general administrative expenses		(6,143	)		(5,418	)		(725	)		13.4
Depreciation and amortisation		(1,558	)		(1,447	)		(112	)		7.7
Net operating income		23,550			21,456			2,094			9.8
Net loan-loss provisions		(9,722	)		(5,219	)		(4,503	)		86.3
Other income		350			564			(214	)		(37.9	)
Profit before taxes		14,178			16,801			(2,623	)		(15.6	)
Tax on profit		(1,804	)		(2,776	)		973			(35.0	)
Profit from continuing operations		12,374			14,024			(1,650	)		(11.8	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		12,374			14,024			(1,650	)		(11.8	)
Minority interests		2,970			19			2,951			—
Attributable profit to the Group		9,404			14,005			(4,601	)		(32.8	)

* Including dividends, income from equity-accounted method and other operating income/expenses

					Variation
	30.09.13		30.09.12		Amount			%
Balance sheet
Customer loans**		374,889		357,834		17,055			4.8
Trading portfolio (w/o loans)		183,919		212,768		(28,849	)		(13.6	)
Available-for-sale financial assets		55,602		55,296		306			0.6
Due from credit institutions**		134,171		117,512		16,659			14.2
Intangible assets and property and equipment		6,730		5,573		1,157			20.8
Other assets		87,997		82,611		5,385			6.5
Total assets/liabilities & shareholders’ equity		843,307		831,594		11,714			1.4
Customer deposits**		460,130		401,290		58,840			14.7
Marketable debt securities**		43,830		22,307		21,523			96.5
Subordinated debt**		—		—		—			—
Insurance liabilities		—		—		—			—
Due to credit institutions**		79,813		111,901		(32,087	)		(28.7	)
Other liabilities		196,807		239,112		(42,305	)		(17.7	)
Shareholders’ equity***		62,727		56,983		5,744			10.1
Other customer funds under management		183,701		175,707		7,994			4.5
Mutual funds		183,701		175,707		7,994			4.5
Pension funds		—		—		—			—
Managed portfolios		—		—		—			—
Customer funds under management		687,660		599,305		88,356			14.7

** Including all on-balance sheet balances for this item

*** Not including profit of the year

Mexico

Million pesos

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		8,113			8,334			8,613			8,839			8,620			8,787			9,103
Net fees		3,056			2,852			3,300			3,470			3,591			3,188			3,483
Gains (losses) on financial transactions		526			75			558			613			901			971			542
Other operating income*		(179	)		(59	)		(230	)		(346	)		(172	)		48			(200	)
Gross income		11,517			11,202			12,241			12,576			12,941			12,994			12,928
Operating expenses		(4,269	)		(4,344	)		(4,890	)		(5,552	)		(5,031	)		(4,989	)		(5,293	)
General administrative expenses		(3,766	)		(3,847	)		(4,445	)		(5,085	)		(4,523	)		(4,451	)		(4,782	)
Personnel		(2,173	)		(2,214	)		(2,252	)		(2,392	)		(2,470	)		(2,472	)		(2,670	)
Other general administrative expenses		(1,593	)		(1,633	)		(2,192	)		(2,693	)		(2,053	)		(1,979	)		(2,112	)
Depreciation and amortisation		(503	)		(498	)		(446	)		(467	)		(509	)		(538	)		(511	)
Net operating income		7,248			6,858			7,350			7,024			7,909			8,005			7,635
Net loan-loss provisions		(1,327	)		(1,747	)		(2,145	)		(2,656	)		(2,370	)		(2,996	)		(4,356	)
Other income		(34	)		504			93			369			428			(31	)		(47	)
Profit before taxes		5,888			5,614			5,298			4,736			5,967			4,979			3,232
Tax on profit		(874	)		(1,116	)		(786	)		(721	)		(696	)		(708	)		(400	)
Profit from continuing operations		5,014			4,498			4,512			4,016			5,271			4,271			2,832
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		5,014			4,498			4,512			4,016			5,271			4,271			2,832
Minority interests		7			6			6			980			1,241			1,043			686
Attributable profit to the Group		5,007			4,492			4,506			3,035			4,031			3,227			2,146

* Including dividends, income from equity-accounted method and other operating income/expenses

	31.03.12		30.06.12		30.09.12		31.12.12		31.03.13		30.06.13		30.09.13
Balance sheet
Customer loans**		325,900		345,169		357,834		350,281		368,140		382,406		374,889
Trading portfolio (w/o loans)		260,364		272,559		212,768		179,914		231,850		215,470		183,919
Available-for-sale financial assets		62,076		54,991		55,296		47,628		37,741		54,394		55,602
Due from credit institutions**		107,719		97,489		117,512		131,836		204,439		99,804		134,171
Intangible assets and property and equipment		6,427		5,211		5,573		6,531		6,332		6,481		6,730
Other assets		75,425		73,834		82,611		89,520		81,150		81,358		87,997
Total assets/liabilities & shareholders’ equity		837,911		849,252		831,594		805,710		929,653		839,913		843,307
Customer deposits**		444,624		439,312		401,290		425,189		433,111		480,183		460,130
Marketable debt securities**		22,332		21,962		22,307		34,721		35,894		26,134		43,830
Subordinated debt**		—		—		—		—		—		—		—
Insurance liabilities		—		—		—		—		—		—		—
Due to credit institutions**		149,546		150,181		111,901		64,563		127,865		82,273		79,813
Other liabilities		145,862		165,246		239,112		223,838		262,201		181,935		196,807
Shareholders’ equity***		75,547		72,551		56,983		57,399		70,581		69,388		62,727
Other customer funds under management		178,788		176,392		175,707		177,474		178,704		183,853		183,701
Mutual funds		178,788		176,392		175,707		177,474		178,704		183,853		183,701
Pension funds		—		—		—		—		—		—		—
Managed portfolios		—		—		—		—		—		—		—
Customer funds under management		645,744		637,666		599,305		637,384		647,709		690,170		687,660

** Including all on-balance sheet balances for this item

*** Not including profit of the year

Chile

EUR million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		1,264			1,255			10			0.8
Net fees		293			339			(45	)		(13.4	)
Gains (losses) on financial transactions		122			96			26			26.8
Other operating income*		13			9			3			36.4
Gross income		1,692			1,699			(7	)		(0.4	)
Operating expenses		(716	)		(692	)		(24	)		3.5
General administrative expenses		(632	)		(619	)		(13	)		2.1
Personnel		(391	)		(388	)		(3	)		0.8
Other general administrative expenses		(241	)		(231	)		(10	)		4.3
Depreciation and amortisation		(84	)		(73	)		(11	)		15.0
Net operating income		976			1,007			(31	)		(3.1	)
Net loan-loss provisions		(456	)		(416	)		(39	)		9.4
Other income		8			(1	)		8			—
Profit before taxes		529			590			(62	)		(10.4	)
Tax on profit		(74	)		(78	)		4			(5.0	)
Profit from continuing operations		455			512			(58	)		(11.3	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		455			512			(58	)		(11.3	)
Minority interests		138			156			(18	)		(11.3	)
Attributable profit to the Group		316			356			(40	)		(11.2	)

* Including dividends, income from equity-accounted method and other operating income/expenses

					Variation
	30.09.13		30.09.12		Amount			%
Balance sheet
Customer loans**		29,697		30,043		(345	)		(1.1	)
Trading portfolio (w/o loans)		1,086		1,717		(631	)		(36.8	)
Available-for-sale financial assets		2,485		2,887		(402	)		(13.9	)
Due from credit institutions**		2,888		3,773		(885	)		(23.5	)
Intangible assets and property and equipment		324		365		(41	)		(11.3	)
Other assets		3,274		3,530		(256	)		(7.3	)
Total assets/liabilities & shareholders’ equity		39,753		42,315		(2,561	)		(6.1	)
Customer deposits**		22,076		23,192		(1,116	)		(4.8	)
Marketable debt securities**		5,949		6,329		(380	)		(6.0	)
Subordinated debt**		1,005		1,175		(170	)		(14.4	)
Insurance liabilities		—		—		—			—
Due to credit institutions**		4,615		4,960		(345	)		(7.0	)
Other liabilities		3,894		4,519		(625	)		(13.8	)
Shareholders’ equity***		2,213		2,138		75			3.5
Other customer funds under management		5,670		4,751		919			19.3
Mutual funds		4,290		4,751		(461	)		(9.7	)
Pension funds		—		—		—			—
Managed portfolios		1,380		—		1,380			—
Customer funds under management		34,700		35,447		(747	)		(2.1	)
**       Including all on-balance sheet balances for this item ***     Not including profit of the year
Ratios (%) and other data
ROE		17.39		20.60		(3.21 p.	)
Efficiency ratio (with amortisations)		42.3		40.7		1.6 p.
NPL ratio		6.00		5.00		1.00 p.
NPL coverage		49.7		60.8		(11.1 p.	)
Number of employees		12,299		12,339		(40	)		(0.3	)
Number of branches		488		496		(8	)		(1.6	)

Chile

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		432			415			408			473			411			407			447
Net fees		111			112			115			109			105			99			89
Gains (losses) on financial transactions		16			41			39			27			31			53			38
Other operating income*		5			3			1			(1	)		7			5			1
Gross income		564			572			563			608			554			563			575
Operating expenses		(215	)		(234	)		(243	)		(242	)		(234	)		(248	)		(233	)
General administrative expenses		(193	)		(209	)		(217	)		(214	)		(205	)		(221	)		(206	)
Personnel		(118	)		(134	)		(136	)		(134	)		(126	)		(138	)		(127	)
Other general administrative expenses		(75	)		(76	)		(81	)		(79	)		(79	)		(84	)		(78	)
Depreciation and amortisation		(22	)		(25	)		(26	)		(28	)		(29	)		(27	)		(28	)
Net operating income		349			337			321			366			320			315			342
Net loan-loss provisions		(125	)		(120	)		(171	)		(157	)		(155	)		(147	)		(153	)
Other income		(4	)		(10	)		14			6			(1	)		3			6
Profit before taxes		220			207			163			215			164			171			194
Tax on profit		(30	)		(25	)		(23	)		(23	)		(16	)		(31	)		(28	)
Profit from continuing operations		190			182			140			192			148			140			166
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		190			182			140			192			148			140			166
Minority interests		59			57			40			58			45			43			51
Attributable profit to the Group		131			125			101			134			103			97			116

* Including dividends, income from equity-accounted method and other operating income/expenses

	31.03.12		30.06.12		30.09.12		31.12.12		31.03.13		30.06.13		30.09.13
Balance sheet
Customer loans**		27,257		29,074		30,043		29,677		31,615		30,085		29,697
Trading portfolio (w/o loans)		1,816		1,768		1,717		1,725		1,549		1,470		1,086
Available-for-sale financial assets		4,127		2,861		2,887		2,949		3,133		2,368		2,485
Due from credit institutions**		2,625		2,798		3,773		3,151		3,720		3,122		2,888
Intangible assets and property and equipment		365		360		365		373		376		341		324
Other assets		2,845		4,284		3,530		2,799		2,764		2,661		3,274
Total assets/liabilities & shareholders’ equity		39,035		41,146		42,315		40,674		43,156		40,046		39,753
Customer deposits**		20,547		23,228		23,192		22,411		23,224		21,961		22,076
Marketable debt securities**		5,819		5,539		6,329		6,082		6,461		6,026		5,949
Subordinated debt**		1,288		1,354		1,175		1,151		1,164		1,039		1,005
Insurance liabilities		—		—		—		—		—		—		—
Due to credit institutions**		4,827		4,974		4,960		4,674		5,284		4,691		4,615
Other liabilities		3,926		3,790		4,519		4,286		4,174		4,015		3,894
Shareholders’ equity***		2,629		2,261		2,138		2,071		2,849		2,313		2,213
Other customer funds under management		5,091		5,126		4,751		4,563		6,286		5,686		5,670
Mutual funds		5,091		5,126		4,751		4,563		4,844		4,349		4,290
Pension funds		—		—		—		—		—		—		—
Managed portfolios		—		—		—		—		1,442		1,337		1,380
Customer funds under management		32,745		35,246		35,447		34,206		37,135		34,712		34,700
**        Including all on-balance sheet balances for this item ***      Not including profit of the year
Other information
NPL ratio		4.52		4.65		5.00		5.17		5.51		5.81		6.00
NPL coverage		68.3		64.0		60.8		57.7		53.9		49.9		49.7
Spread (Retail Banking)		7.01		6.98		6.84		6.61		6.70		6.74		6.43
Loan spreads		4.56		4.62		4.48		4.36		4.31		4.27		4.01
Deposit spreads		2.45		2.36		2.36		2.25		2.39		2.47		2.42

Chile

Ch$ million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		811,935			785,500			26,435			3.4
Net fees		188,254			211,992			(23,738	)		(11.2	)
Gains (losses) on financial transactions		78,344			60,232			18,112			30.1
Other operating income*		8,322			5,947			2,375			39.9
Gross income		1,086,855			1,063,673			23,183			2.2
Operating expenses		(459,762	)		(433,087	)		(26,675	)		6.2
General administrative expenses		(406,002	)		(387,532	)		(18,470	)		4.8
Personnel		(251,126	)		(242,759	)		(8,366	)		3.4
Other general administrative expenses		(154,877	)		(144,772	)		(10,104	)		7.0
Depreciation and amortisation		(53,760	)		(45,555	)		(8,205	)		18.0
Net operating income		627,093			630,586			(3,492	)		(0.6	)
Net loan-loss provisions		(292,582	)		(260,674	)		(31,907	)		12.2
Other income		4,964			(458	)		5,422			—
Profit before taxes		339,476			369,454			(29,978	)		(8.1	)
Tax on profit		(47,505	)		(48,764	)		1,259			(2.6	)
Profit from continuing operations		291,970			320,689			(28,719	)		(9.0	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		291,970			320,689			(28,719	)		(9.0	)
Minority interests		88,824			97,591			(8,767	)		(9.0	)
Attributable profit to the Group		203,147			223,099			(19,952	)		(8.9	)

* Including dividends, income from equity-accounted method and other operating income/expenses

					Variation
	30.09.13		30.09.12		Amount			%
Balance sheet
Customer loans**		20,279,699		18,372,766		1,906,933			10.4
Trading portfolio (w/o loans)		741,289		1,049,765		(308,476	)		(29.4	)
Available-for-sale financial assets		1,696,733		1,765,557		(68,824	)		(3.9	)
Due from credit institutions**		1,971,965		2,307,234		(335,268	)		(14.5	)
Intangible assets and property and equipment		221,277		223,420		(2,143	)		(1.0	)
Other assets		2,235,876		2,159,014		76,862			3.6
Total assets/liabilities & shareholders’ equity		27,146,839		25,877,755		1,269,084			4.9
Customer deposits**		15,075,274		14,183,400		891,873			6.3
Marketable debt securities**		4,062,511		3,870,576		191,934			5.0
Subordinated debt**		686,627		718,668		(32,041	)		(4.5	)
Insurance liabilities		—		—		—			—
Due to credit institutions**		3,151,591		3,033,535		118,056			3.9
Other liabilities		2,659,301		2,763,916		(104,615	)		(3.8	)
Shareholders’ equity***		1,511,536		1,307,659		203,876			15.6
Other customer funds under management		3,871,792		2,905,322		966,470			33.3
Mutual funds		2,929,321		2,905,322		23,999			0.8
Pension funds		—		—		—			—
Managed portfolios		942,471		—		942,471			—
Customer funds under management		23,696,204		21,677,967		2,018,237			9.3

** Including all on-balance sheet balances for this item

*** Not including profit of the year

Chile

Ch$ million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		276,624			263,818			245,058			293,249			256,208			257,147			298,580
Net fees		71,257			71,591			69,145			67,251			65,411			62,461			60,382
Gains (losses) on financial transactions		10,143			26,207			23,883			16,894			19,528			33,239			25,577
Other operating income*		2,981			2,215			752			(329	)		4,099			3,191			1,032
Gross income		361,004			363,830			338,838			377,065			345,246			356,038			385,571
Operating expenses		(137,450	)		(149,105	)		(146,532	)		(149,946	)		(145,951	)		(156,943	)		(156,868	)
General administrative expenses		(123,336	)		(133,239	)		(130,957	)		(132,402	)		(127,747	)		(139,949	)		(138,306	)
Personnel		(75,619	)		(85,096	)		(82,044	)		(83,166	)		(78,389	)		(87,084	)		(85,653	)
Other general administrative expenses		(47,716	)		(48,143	)		(48,913	)		(49,236	)		(49,358	)		(52,865	)		(52,653	)
Depreciation and amortisation		(14,115	)		(15,866	)		(15,575	)		(17,543	)		(18,204	)		(16,994	)		(18,561	)
Net operating income		223,554			214,725			192,307			227,119			199,295			199,095			228,704
Net loan-loss provisions		(80,018	)		(76,598	)		(104,058	)		(97,428	)		(96,426	)		(93,268	)		(102,887	)
Other income		(2,746	)		(6,563	)		8,851			3,836			(725	)		2,114			3,575
Profit before taxes		140,790			131,565			97,099			133,528			102,143			107,940			129,392
Tax on profit		(19,173	)		(15,664	)		(13,927	)		(14,431	)		(9,779	)		(19,243	)		(18,483	)
Profit from continuing operations		121,617			115,901			83,172			119,096			92,364			88,697			110,909
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		121,617			115,901			83,172			119,096			92,364			88,697			110,909
Minority interests		37,741			36,492			23,357			36,115			27,824			27,301			33,698
Attributable profit to the Group		83,875			79,409			59,814			82,981			64,540			61,396			77,210
*       Including dividends, income from equity-accounted method and other operating income/expenses
	31.03.12			30.06.12			30.09.12			31.12.12			31.03.13			30.06.13			30.09.13
Balance sheet
Customer loans**		17,698,244			18,348,049			18,372,766			18,748,111			19,118,178			19,901,557			20,279,699
Trading portfolio (w/o loans)		1,179,112			1,115,756			1,049,765			1,089,813			936,792			972,355			741,289
Available-for-sale financial assets		2,679,752			1,805,655			1,765,557			1,862,768			1,894,436			1,566,166			1,696,733
Due from credit institutions**		1,704,231			1,765,475			2,307,234			1,990,545			2,249,328			2,065,436			1,971,965
Intangible assets and property and equipment		237,232			227,468			223,420			235,386			227,136			225,270			221,277
Other assets		1,847,166			2,703,655			2,159,014			1,768,299			1,671,140			1,760,204			2,235,876
Total assets/liabilities & shareholders’ equity		25,345,737			25,966,059			25,877,755			25,694,922			26,097,010			26,490,989			27,146,839
Customer deposits**		13,340,968			14,658,296			14,183,400			14,157,440			14,043,939			14,527,521			15,075,274
Marketable debt securities**		3,778,230			3,495,417			3,870,576			3,842,344			3,907,130			3,986,644			4,062,511
Subordinated debt**		836,527			854,557			718,668			726,878			703,894			687,548			686,627
Insurance liabilities		—			—			—			—			—			—			—
Due to credit institutions**		3,133,934			3,138,836			3,033,535			2,952,486			3,195,043			3,103,338			3,151,591
Other liabilities		2,548,965			2,391,846			2,763,916			2,707,376			2,524,145			2,655,717			2,659,301
Shareholders’ equity**		1,707,114			1,427,106			1,307,659			1,308,398			1,722,860			1,530,221			1,511,536
Other customer funds under management		3,305,670			3,234,844			2,905,322			2,882,327			3,801,165			3,761,328			3,871,792
Mutual funds		3,305,670			3,234,844			2,905,322			2,882,327			2,928,982			2,877,133			2,929,321
Pension funds		—			—			—			—			—			—			—
Managed portfolios		—			—			—			—			872,183			884,194			942,471
Customer funds under management		21,261,394			22,243,115			21,677,967			21,608,990			22,456,128			22,963,041			23,696,204

** Including all on-balance sheet balances for this item

*** Not including profit of the year

USA

EUR million

							Variation
	9M ‘13			9M ‘12			Amount			%
Income statement
Net interest income		1,074			1,287			(213	)		(16.6	)
Net fees		290			287			2			0.8
Gains (losses) on financial transactions		58			187			(128	)		(68.7	)
Other operating income*		244			224			20			8.9
Gross income		1,666			1,985			(319	)		(16.1	)
Operating expenses		(924	)		(880	)		(44	)		5.0
General administrative expenses		(805	)		(772	)		(33	)		4.3
Personnel		(458	)		(426	)		(32	)		7.6
Other general administrative expenses		(346	)		(346	)		(0	)		0.1
Depreciation and amortisation		(119	)		(108	)		(11	)		10.3
Net operating income		742			1,105			(363	)		(32.8	)
Net loan-loss provisions		(19	)		(202	)		184			(90.7	)
Other income		(45	)		(188	)		143			(76.2	)
Profit before taxes		679			715			(36	)		(5.1	)
Tax on profit		(92	)		(135	)		43			(32.1	)
Profit from continuing operations		587			579			7			1.3
Net profit from discontinued operations		—			—			—			—
Consolidated profit		587			579			7			1.3
Minority interests		—			—			—			—
Attributable profit to the Group		587			579			7			1.3

* Including dividends, income from equity-accounted method and other operating income/expenses

					Variation
	30.09.13		30.09.12		Amount			%
Balance sheet
Customer loans**		38,184		41,845		(3,662	)		(8.8	)
Trading portfolio (w/o loans)		144		313		(169	)		(53.9	)
Available-for-sale financial assets		8,921		13,972		(5,050	)		(36.1	)
Due from credit institutions**		466		615		(149	)		(24.2	)
Intangible assets and property and equipment		558		532		27			5.0
Other assets		7,012		6,394		618			9.7
Total assets/liabilities & shareholders’ equity		55,286		63,671		(8,385	)		(13.2	)
Customer deposits**		36,181		38,454		(2,273	)		(5.9	)
Marketable debt securities**		1,167		838		329			39.3
Subordinated debt**		1,761		2,504		(743	)		(29.7	)
Insurance liabilities		—		—		—			—
Due to credit institutions**		8,451		13,949		(5,498	)		(39.4	)
Other liabilities		1,934		2,642		(709	)		(26.8	)
Shareholders’ equity***		5,793		5,285		508			9.6
Other customer funds under management		—		0		(0	)		(100.0	)
Mutual funds		—		—		—			—
Pension funds		—		—		—			—
Managed portfolios		—		0		(0	)		(100.0	)
Customer funds under management		39,109		41,796		(2,687	)		(6.4	)
**       Including all on-balance sheet balances for this item ***     Not including profit of the year
Ratios (%) and other data
ROE		13.35		14.80		(1.45 p.	)
Efficiency ratio (with amortisations)		55.5		44.3		11.1 p.
NPL ratio		2.26		2.31		(0.05 p.	)
NPL coverage		96.6		109.7		(13.1 p.	)
Number of employees		9,571		9,452		119			1.3
Number of branches		706		722		(16	)		(2.2	)

USA

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		430			428			430			408			367			360			347
Net fees		95			97			95			91			93			99			98
Gains (losses) on financial transactions		58			78			50			58			49			18			(8	)
Other operating income*		81			74			70			63			99			73			72
Gross income		663			677			644			620			608			549			509
Operating expenses		(278	)		(297	)		(304	)		(303	)		(297	)		(299	)		(328	)
General administrative expenses		(248	)		(261	)		(263	)		(266	)		(261	)		(260	)		(284	)
Personnel		(139	)		(140	)		(147	)		(146	)		(148	)		(150	)		(160	)
Other general administrative expenses		(110	)		(120	)		(116	)		(120	)		(113	)		(110	)		(123	)
Depreciation and amortisation		(30	)		(36	)		(42	)		(38	)		(36	)		(39	)		(44	)
Net operating income		385			380			340			317			311			250			181
Net loan-loss provisions		(71	)		(79	)		(52	)		(62	)		(27	)		(5	)		13
Other income		(19	)		(28	)		(141	)		1			(8	)		(9	)		(27	)
Profit before taxes		295			274			146			256			276			236			167
Tax on profit		(57	)		(59	)		(20	)		(30	)		(43	)		(46	)		(3	)
Profit from continuing operations		238			215			126			226			233			190			164
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		238			215			126			226			233			190			164
Minority interests		—			—			—			—			—			—			—
Attributable profit to the Group		238			215			126			226			233			190			164

* Including dividends, income from equity-accounted method and other operating income/expenses

	31.03.12		30.06.12		30.09.12		31.12.12		31.03.13		30.06.13		30.09.13
Balance sheet
Customer loans**		40,030		42,984		41,845		41,331		42,032		39,683		38,184
Trading portfolio (w/o loans)		245		305		313		275		241		166		144
Available-for-sale financial assets		13,421		12,854		13,972		14,791		14,093		11,133		8,921
Due from credit institutions**		512		644		615		714		366		398		466
Intangible assets and property and equipment		479		529		532		560		569		555		558
Other assets		5,403		6,452		6,394		5,278		5,242		6,631		7,012
Total assets/liabilities & shareholders’ equity		60,091		63,768		63,671		62,950		62,543		58,566		55,286
Customer deposits**		37,828		38,344		38,454		38,116		39,575		37,611		36,181
Marketable debt securities**		563		388		838		820		841		823		1,167
Subordinated debt**		2,220		2,359		2,504		1,986		1,856		1,814		1,761
Insurance liabilities		0		—		—		—		—		—		—
Due to credit institutions**		12,364		15,058		13,949		14,221		12,249		10,354		8,451
Other liabilities		2,011		2,204		2,642		2,629		1,912		1,983		1,934
Shareholders’ equity***		5,105		5,415		5,285		5,179		6,110		5,981		5,793
Other customer funds under management		1		0		0		—		—		—		—
Mutual funds		—		—		—		—		—		—		—
Pension funds		—		—		—		—		—		—		—
Managed portfolios		1		0		0		—		—		—		—
Customer funds under management		40,611		41,091		41,796		40,922		42,272		40,248		39,109
**       Including all on-balance sheet balances for this item ***     Not including profit of the year
Other information
NPL ratio		2.46		2.27		2.31		2.29		2.23		2.22		2.26
NPL coverage		107.4		113.3		109.7		105.9		102.8		102.8		96.6
Spread (Retail Banking)		2.82		2.86		2.74		2.68		2.85		2.85		3.09
Loan spreads		2.36		2.45		2.37		2.39		2.51		2.52		2.52
Deposit spreads		0.46		0.41		0.37		0.29		0.34		0.33		0.57

USA

US$ million

							Variation
	9M ‘13			9M ‘12			Amount			%
Income statement
Net interest income		1,414			1,647			(233	)		(14.2	)
Net fees		382			368			14			3.7
Gains (losses) on financial transactions		77			239			(162	)		(67.8	)
Other operating income*		321			286			35			12.1
Gross income		2,193			2,540			(347	)		(13.7	)
Operating expenses		(1,216	)		(1,126	)		(90	)		8.0
General administrative expenses		(1,059	)		(988	)		(72	)		7.2
Personnel		(603	)		(545	)		(58	)		10.7
Other general administrative expenses		(456	)		(443	)		(13	)		3.0
Depreciation and amortisation		(157	)		(138	)		(19	)		13.5
Net operating income		977			1,414			(437	)		(30.9	)
Net loan-loss provisions		(25	)		(259	)		234			(90.4	)
Other income		(59	)		(241	)		182			(75.5	)
Profit before taxes		893			915			(21	)		(2.3	)
Tax on profit		(121	)		(173	)		52			(30.2	)
Profit from continuing operations		772			742			31			4.2
Net profit from discontinued operations		—			—			—			—
Consolidated profit		772			742			31			4.2
Minority interests		—			—			—			—
Attributable profit to the Group		772			742			31			4.2

* Including dividends, income from equity-accounted method and other operating income/expenses

					Variation
	30.09.13		30.09.12		Amount			%
Balance sheet
Customer loans**		51,567		54,106		(2,539	)		(4.7	)
Trading portfolio (w/o loans)		195		405		(210	)		(51.8	)
Available-for-sale financial assets		12,048		18,065		(6,017	)		(33.3	)
Due from credit institutions**		630		796		(166	)		(20.8	)
Intangible assets and property and equipment		754		688		66			9.7
Other assets		9,470		8,267		1,203			14.5
Total assets/liabilities & shareholders’ equity		74,664		82,327		(7,663	)		(9.3	)
Customer deposits**		48,862		49,721		(859	)		(1.7	)
Marketable debt securities**		1,576		1,083		493			45.5
Subordinated debt**		2,378		3,238		(860	)		(26.6	)
Insurance liabilities		—		—		—			—
Due to credit institutions**		11,413		18,036		(6,623	)		(36.7	)
Other liabilities		2,611		3,416		(805	)		(23.6	)
Shareholders’ equity***		7,823		6,833		991			14.5
Other customer funds under management		—		0		(0	)		(100.0	)
Mutual funds		—		—		—			—
Pension funds		—		—		—			—
Managed portfolios		—		0		(0	)		(100.0	)
Customer funds under management		52,816		54,042		(1,225	)		(2.3	)

** Including all on-balance sheet balances for this item

*** Not including profit of the year

USA

US$ million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		563			548			536			530			484			470			460
Net fees		125			125			118			117			123			129			130
Gains (losses) on financial transactions		76			101			62			75			64			23			(10	)
Other operating income*		106			94			87			82			131			94			95
Gross income		869			868			803			805			803			717			674
Operating expenses		(365	)		(381	)		(380	)		(393	)		(392	)		(390	)		(434	)
General administrative expenses		(325	)		(334	)		(328	)		(344	)		(344	)		(340	)		(375	)
Personnel		(182	)		(180	)		(184	)		(189	)		(195	)		(196	)		(212	)
Other general administrative expenses		(144	)		(154	)		(145	)		(156	)		(149	)		(144	)		(163	)
Depreciation and amortisation		(39	)		(47	)		(52	)		(49	)		(48	)		(51	)		(59	)
Net operating income		505			487			423			411			411			326			240
Net loan-loss provisions		(93	)		(101	)		(65	)		(81	)		(36	)		(6	)		17
Other income		(25	)		(35	)		(180	)		1			(11	)		(12	)		(36	)
Profit before taxes		387			350			178			331			365			308			221
Tax on profit		(74	)		(76	)		(23	)		(39	)		(57	)		(60	)		(4	)
Profit from continuing operations		312			275			155			292			307			248			217
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		312			275			155			292			307			248			217
Minority interests		—			—			—			—			—			—			—
Attributable profit to the Group		312			275			155			292			307			248			217

* Including dividends, income from equity-accounted method and other operating income/expenses

	31.03.12		30.06.12		30.09.12		31.12.12		31.03.13		30.06.13		30.09.13
Balance sheet
Customer loans**		53,464		54,117		54,106		54,532		53,821		51,906		51,567
Trading portfolio (w/o loans)		328		384		405		363		309		217		195
Available-for-sale financial assets		17,926		16,183		18,065		19,516		18,046		14,562		12,048
Due from credit institutions**		684		811		796		942		469		520		630
Intangible assets and property and equipment		640		666		688		739		729		726		754
Other assets		7,216		8,123		8,267		6,964		6,712		8,674		9,470
Total assets/liabilities & shareholders’ equity		80,257		80,284		82,327		83,056		80,086		76,604		74,664
Customer deposits**		50,523		48,276		49,721		50,290		50,675		49,196		48,862
Marketable debt securities**		752		489		1,083		1,081		1,077		1,077		1,576
Subordinated debt**		2,965		2,969		3,238		2,621		2,377		2,372		2,378
Insurance liabilities		0		—		—		—		—		—		—
Due to credit institutions**		16,514		18,958		18,036		18,763		15,685		13,543		11,413
Other liabilities		2,687		2,775		3,416		3,468		2,449		2,593		2,611
Shareholders’ equity***		6,818		6,818		6,833		6,833		7,823		7,823		7,823
Other customer funds under management		1		0		0		—		—		—		—
Mutual funds		—		—		—		—		—		—		—
Pension funds		—		—		—		—		—		—		—
Managed portfolios		1		0		0		—		—		—		—
Customer funds under management		54,240		51,734		54,042		53,992		54,130		52,645		52,816

** Including all on-balance sheet balances for this item

*** Not including profit of the year

Santander Bank

EUR million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		1,086			1,287			(201	)		(15.6	)
Net fees		289			287			1			0.4
Gains (losses) on financial transactions		58			187			(128	)		(68.7	)
Other operating income*		(28	)		(37	)		9			(25.4	)
Gross income		1,406			1,724			(318	)		(18.5	)
Operating expenses		(924	)		(877	)		(46	)		5.3
General administrative expenses		(805	)		(769	)		(35	)		4.6
Personnel		(458	)		(424	)		(34	)		8.1
Other general administrative expenses		(346	)		(345	)		(1	)		0.3
Depreciation and amortisation		(119	)		(108	)		(11	)		10.4
Net operating income		482			847			(365	)		(43.1	)
Net loan-loss provisions		(19	)		(202	)		184			(90.7	)
Other income		(45	)		(188	)		143			(76.2	)
Profit before taxes		418			456			(38	)		(8.3	)
Tax on profit		(94	)		(136	)		42			(30.8	)
Profit from continuing operations		324			320			4			1.2
Net profit from discontinued operations		—			—			—			—
Consolidated profit		324			320			4			1.2
Minority interests		—			—			—			—
Attributable profit to the Group		324			320			4			1.2

* Including dividends, income from equity-accounted method and other operating income/expenses

Santander Bank

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		430			428			430			408			369			365			352
Net fees		95			97			95			91			93			98			98
Gains (losses) on financial transactions		58			78			50			58			49			18			(8	)
Other operating income*		(14	)		(10	)		(13	)		(17	)		(14	)		(9	)		(5	)
Gross income		569			594			561			540			497			472			437
Operating expenses		(278	)		(296	)		(304	)		(303	)		(297	)		(299	)		(328	)
General administrative expenses		(247	)		(260	)		(262	)		(265	)		(261	)		(260	)		(284	)
Personnel		(138	)		(140	)		(146	)		(145	)		(148	)		(150	)		(160	)
Other general administrative expenses		(110	)		(120	)		(116	)		(120	)		(113	)		(110	)		(123	)
Depreciation and amortisation		(30	)		(36	)		(42	)		(38	)		(36	)		(39	)		(44	)
Net operating income		291			298			257			237			200			173			109
Net loan-loss provisions		(71	)		(79	)		(52	)		(62	)		(27	)		(5	)		13
Other income		(19	)		(28	)		(141	)		1			(8	)		(9	)		(27	)
Profit before taxes		201			191			64			176			165			159			94
Tax on profit		(57	)		(59	)		(20	)		(30	)		(44	)		(47	)		(4	)
Profit from continuing operations		144			132			44			146			121			112			91
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		144			132			44			146			121			112			91
Minority interests		—			—			—			—			—			—			—
Attributable profit to the Group		144			132			44			146			121			112			91

* Including dividends, income from equity-accounted method and other operating income/expenses

Santander Bank

US$ million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		1,430			1,647			(217	)		(13.2	)
Net fees		380			368			12			3.3
Gains (losses) on financial transactions		77			239			(162	)		(67.8	)
Other operating income*		(37	)		(48	)		11			(23.2	)
Gross income		1,851			2,207			(356	)		(16.1	)
Operating expenses		(1,216	)		(1,123	)		(93	)		8.3
General administrative expenses		(1,059	)		(985	)		(75	)		7.6
Personnel		(603	)		(543	)		(61	)		11.2
Other general administrative expenses		(456	)		(442	)		(14	)		3.1
Depreciation and amortisation		(157	)		(138	)		(19	)		13.6
Net operating income		634			1,084			(449	)		(41.5	)
Net loan-loss provisions		(25	)		(259	)		234			(90.4	)
Other income		(59	)		(241	)		182			(75.5	)
Profit before taxes		551			584			(33	)		(5.7	)
Tax on profit		(124	)		(174	)		50			(28.8	)
Profit from continuing operations		427			410			17			4.1
Net profit from discontinued operations		—			—			—			—
Consolidated profit		427			410			17			4.1
Minority interests		—			—			—			—
Attributable profit to the Group		427			410			17			4.1

* Including dividends, income from equity-accounted method and other operating income/expenses

Santander Bank

US$ million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		563			548			536			530			488			477			466
Net fees		125			125			118			117			122			128			129
Gains (losses) on financial transactions		76			101			62			75			64			23			(10	)
Other operating income*		(18	)		(12	)		(17	)		(22	)		(19	)		(12	)		(6	)
Gross income		745			762			700			700			656			616			579
Operating expenses		(364	)		(380	)		(379	)		(393	)		(392	)		(390	)		(434	)
General administrative expenses		(324	)		(333	)		(327	)		(344	)		(344	)		(340	)		(375	)
Personnel		(181	)		(179	)		(183	)		(188	)		(195	)		(196	)		(212	)
Other general administrative expenses		(144	)		(154	)		(144	)		(156	)		(149	)		(144	)		(163	)
Depreciation and amortisation		(39	)		(47	)		(52	)		(49	)		(48	)		(51	)		(59	)
Net operating income		382			382			320			308			264			226			144
Net loan-loss provisions		(93	)		(101	)		(65	)		(81	)		(36	)		(6	)		17
Other income		(25	)		(35	)		(180	)		1			(11	)		(12	)		(36	)
Profit before taxes		264			245			75			227			218			207			125
Tax on profit		(75	)		(76	)		(24	)		(39	)		(58	)		(61	)		(5	)
Profit from continuing operations		189			169			52			188			160			146			120
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		189			169			52			188			160			146			120
Minority interests		—			—			—			—			—			—			—
Attributable profit to the Group		189			169			52			188			160			146			120

* Including dividends, income from equity-accounted method and other operating income/expenses

Corporate Activities

EUR million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		(1,615	)		(1,414	)		(201	)		14.2
Net fees		(52	)		(25	)		(27	)		105.9
Gains (losses) on financial transactions		920			515			405			78.7
Other operating income		110			135			(25	)		(18.8	)
Dividends		31			45			(13	)		(30.0	)
Income from equity-accounted method		(8	)		(2	)		(6	)		332.9
Other operating income/expenses		86			92			(6	)		(6.5	)
Gross income		(638	)		(789	)		152			(19.2	)
Operating expenses		(526	)		(476	)		(50	)		10.6
General administrative expenses		(448	)		(374	)		(74	)		19.7
Personnel		(160	)		(143	)		(17	)		12.0
Other general administrative expenses		(287	)		(231	)		(56	)		24.4
Depreciation and amortisation		(78	)		(101	)		23			(22.9	)
Net operating income		(1,164	)		(1,265	)		102			(8.0	)
Net loan-loss provisions		(203	)		(31	)		(173	)		560.1
Other income		(279	)		(116	)		(163	)		140.1
Ordinary profit before taxes		(1,646	)		(1,412	)		(234	)		16.5
Tax on profit		151			(93	)		245			—
Ordinary profit from continuing operations		(1,494	)		(1,505	)		11			(0.7	)
Net profit from discontinued operations		—			0			(0	)		(100.0	)
Ordinary consolidated profit		(1,494	)		(1,505	)		11			(0.7	)
Minority interests		(4	)		0			(4	)		—
Ordinary attributable profit to the Group		(1,491	)		(1,505	)		15			(1.0	)
Net capital gains and provisions		—			927			(927	)		(100.0	)
Attributable profit to the Group		(1,491	)		(579	)		(912	)		157.5
							Variation
	30.09.13			30.09.12			Amount			%
Balance sheet
Trading portfolio (w/o loans)		4,772			9,940			(5,168	)		(52.0	)
Available-for-sale financial assets		18,590			6,337			12,254			193.4
Investments		237			76			161			210.4
Goodwill		23,729			25,178			(1,449	)		(5.8	)
Liquidity lent to the Group		23,862			47,793			(23,931	)		(50.1	)
Capital assigned to Group areas		70,193			70,602			(409	)		(0.6	)
Other assets		62,816			91,513			(28,697	)		(31.4	)
Total assets/liabilities & shareholders’ equity		204,200			251,439			(47,239	)		(18.8	)
Customer deposits*		4,916			3,150			1,765			56.0
Marketable debt securities*		69,149			81,730			(12,582	)		(15.4	)
Subordinated debt		4,593			4,889			(296	)		(6.0	)
Other liabilities		44,677			81,859			(37,183	)		(45.4	)
Group capital and reserves**		80,866			79,811			1,055			1.3
Other customer funds under management		—			—			—			—
Mutual funds		—			—			—			—
Pension funds		—			—			—			—
Managed portfolios		—			—			—			—
Customer funds under management		78,657			89,769			(11,112	)		(12.4	)

* Including all on-balance sheet balances for this item

** Not including profit of the year

Resources
Number of employees	2,490	2,377	113	4.8

Corporate Activities

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		(453	)		(441	)		(520	)		(429	)		(580	)		(509	)		(526	)
Net fees		(13	)		(3	)		(9	)		(5	)		(14	)		(20	)		(19	)
Gains (losses) on financial transactions		99			226			189			201			231			359			330
Other operating income		42			34			60			15			35			28			47
Dividends		14			10			21			8			4			4			23
Income from equity-accounted method		(1	)		(1	)		0			(3	)		(2	)		(2	)		(4	)
Other operating income/expenses		29			25			39			9			32			25			28
Gross income		(326	)		(184	)		(280	)		(218	)		(328	)		(141	)		(168	)
Operating expenses		(171	)		(156	)		(149	)		(54	)		(178	)		(177	)		(170	)
General administrative expenses		(142	)		(136	)		(96	)		(36	)		(160	)		(134	)		(154	)
Personnel		(67	)		(59	)		(18	)		40			(65	)		(60	)		(35	)
Other general administrative expenses		(75	)		(78	)		(78	)		(77	)		(95	)		(73	)		(119	)
Depreciation and amortisation		(29	)		(20	)		(53	)		(18	)		(18	)		(44	)		(16	)
Net operating income		(496	)		(340	)		(429	)		(272	)		(507	)		(319	)		(338	)
Net loan-loss provisions		(4	)		4			(30	)		(54	)		(29	)		(189	)		14
Other income		(61	)		18			(74	)		(439	)		(66	)		(89	)		(124	)
Ordinary profit before taxes		(562	)		(318	)		(533	)		(765	)		(602	)		(596	)		(447	)
Tax on profit		3			(64	)		(32	)		126			54			73			24
Ordinary profit from continuing operations		(559	)		(381	)		(565	)		(639	)		(547	)		(523	)		(424	)
Net profit from discontinued operations		—			(0	)		0			—			—			—			—
Ordinary consolidated profit		(559	)		(381	)		(565	)		(639	)		(547	)		(523	)		(424	)
Minority interests		(27	)		15			12			(20	)		(0	)		(2	)		(2	)
Ordinary attributable profit to the Group		(531	)		(397	)		(577	)		(619	)		(547	)		(521	)		(422	)
Net capital gains and provisions		—			682			244			56			—			—			—
Attributable profit to the Group		(531	)		285			(333	)		(563	)		(547	)		(521	)		(422	)
	31.03.12			30.06.12			30.09.12			31.12.12			31.03.13			30.06.13			30.09.13
Balance sheet
Trading portfolio (w/o loans)		7,119			8,062			9,940			4,722			6,167			5,291			4,772
Available-for-sale financial assets		5,020			3,599			6,337			8,949			17,449			22,421			18,590
Investments		76			73			76			88			83			206			237
Goodwill		25,200			25,136			25,178			24,626			25,070			23,878			23,729
Liquidity lent to the Group		57,118			62,627			47,793			18,583			26,730			30,515			23,862
Capital assigned to Group areas		73,630			72,388			70,602			69,773			76,323			72,619			70,193
Other assets		108,697			92,390			91,513			116,712			72,974			58,275			62,816
Total assets/liabilities & shareholders’ equity		276,861			264,276			251,439			243,453			224,795			213,205			204,200
Customer deposits*		20,129			13,034			3,150			3,152			2,567			5,978			4,916
Marketable debt securities*		86,915			82,357			81,730			82,002			79,680			74,891			69,149
Subordinated debt		6,240			5,344			4,889			4,866			4,471			4,412			4,593
Other liabilities		84,486			84,594			81,859			73,744			57,125			46,976			44,677
Group capital and reserves**		79,091			78,947			79,811			79,689			80,953			80,947			80,866
Other customer funds under management		—			—			—			—			—			0			—
Mutual funds		—			—			—			—			—			0			—
Pension funds		—			—			—			—			—			(0	)		—
Managed portfolios		—			—			—			—			—			—			—
Customer funds under management		113,284			100,735			89,769			90,020			86,718			85,281			78,657

* Including all on-balance sheet balances for this item

** Not including profit of the year

Retail Banking

EUR million

							Variation
	Jan-Sep ’13			Jan-Sep ’12			Amount			%
Income statement
Net interest income		19,365			22,083			(2,718	)		(12.3	)
Net fees		6,199			6,371			(171	)		(2.7	)
Gains (losses) on financial transactions		948			885			62			7.0
Other operating income*		(24	)		(90	)		66			(73.4	)
Gross income		26,488			29,249			(2,761	)		(9.4	)
Operating expenses		(12,653	)		(12,855	)		203			(1.6	)
General administrative expenses		(11,171	)		(11,482	)		310			(2.7	)
Personnel		(6,505	)		(6,754	)		249			(3.7	)
Other general administrative expenses		(4,666	)		(4,727	)		61			(1.3	)
Depreciation and amortisation		(1,481	)		(1,374	)		(107	)		7.8
Net operating income		13,836			16,394			(2,558	)		(15.6	)
Net loan-loss provisions		(7,359	)		(8,909	)		1,550			(17.4	)
Other income		(757	)		(1,167	)		410			(35.1	)
Ordinary profit before taxes		5,720			6,317			(597	)		(9.5	)
Tax on profit		(1,148	)		(1,380	)		231			(16.8	)
Ordinary profit from continuing operations		4,571			4,937			(366	)		(7.4	)
Net profit from discontinued operations		(14	)		50			(64	)		—
Ordinary consolidated profit		4,557			4,987			(430	)		(8.6	)
Minority interests		620			492			128			26.1
Ordinary attributable profit to the Group		3,937			4,495			(558	)		(12.4	)
Net capital gains and provisions		—			81			(81	)		(100.0	)
Attributable profit to the Group		3,937			4,576			(639	)		(14.0	)

* Including dividends, income from equity-accounted method and other operating income/expenses

					Variation
	30.09.13		30.09.12		Amount			%
Business volumes
Total assets		796,063		859,440		(63,377	)		(7.4	)
Customer loans		594,019		635,912		(41,893	)		(6.6	)
Customer deposits		549,621		534,572		15,049			2.8

Retail Banking

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		7,498			7,341			7,243			6,782			6,547			6,581			6,237
Net fees		2,157			2,081			2,132			2,100			2,096			2,125			1,978
Gains (losses) on financial transactions		221			359			305			249			378			349			221
Other operating income*		(50	)		0			(41	)		(54	)		(3	)		(0	)		(21	)
Gross income		9,826			9,783			9,640			9,077			9,018			9,055			8,415
Operating expenses		(4,300	)		(4,212	)		(4,343	)		(4,335	)		(4,263	)		(4,252	)		(4,137	)
General administrative expenses		(3,857	)		(3,773	)		(3,851	)		(3,861	)		(3,770	)		(3,754	)		(3,647	)
Personnel		(2,256	)		(2,223	)		(2,276	)		(2,231	)		(2,211	)		(2,189	)		(2,105	)
Other general administrative expenses		(1,601	)		(1,550	)		(1,575	)		(1,630	)		(1,559	)		(1,565	)		(1,543	)
Depreciation and amortisation		(443	)		(439	)		(492	)		(474	)		(493	)		(499	)		(490	)
Net operating income		5,526			5,571			5,297			4,742			4,755			4,803			4,278
Net loan-loss provisions		(3,014	)		(3,182	)		(2,713	)		(2,854	)		(2,613	)		(2,673	)		(2,072	)
Other income		(377	)		(355	)		(436	)		(129	)		(169	)		(316	)		(272	)
Ordinary profit before taxes		2,134			2,034			2,149			1,760			1,973			1,813			1,934
Tax on profit		(441	)		(438	)		(500	)		(269	)		(381	)		(341	)		(426	)
Ordinary profit from continuing operations		1,693			1,596			1,648			1,490			1,591			1,472			1,508
Net profit from discontinued operations		17			11			22			20			—			(14	)		(0	)
Ordinary consolidated profit		1,711			1,607			1,670			1,510			1,591			1,458			1,507
Minority interests		185			167			140			194			235			194			191
Ordinary attributable profit to the Group		1,526			1,439			1,530			1,316			1,356			1,265			1,316
Net capital gains and provisions		—			—			81			—			—			—			—
Attributable profit to the Group		1,526			1,439			1,611			1,316			1,356			1,265			1,316

* Including dividends, income from equity-accounted method and other operating income/expenses

	31.03.12		30.06.12		30.09.12		31.12.12		31.03.13		30.06.13		30.09.13
Business volumes
Total assets		842,998		860,568		859,440		828,738		842,996		817,404		796,063
Customer loans		631,355		644,901		635,912		618,523		619,452		600,787		594,019
Customer deposits		520,290		535,253		534,572		533,978		559,739		551,927		549,621

Retail Banking Continental Europe

EUR million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		5,261			5,776			(515	)		(8.9	)
Net fees		2,249			2,163			86			4.0
Gains (losses) on financial transactions		301			218			83			38.0
Other operating income*		(168	)		(110	)		(58	)		53.2
Gross income		7,643			8,048			(405	)		(5.0	)
Operating expenses		(4,086	)		(3,983	)		(103	)		2.6
General administrative expenses		(3,636	)		(3,584	)		(52	)		1.4
Personnel		(2,259	)		(2,217	)		(42	)		1.9
Other general administrative expenses		(1,377	)		(1,367	)		(10	)		0.7
Depreciation and amortisation		(450	)		(399	)		(51	)		12.8
Net operating income		3,558			4,065			(507	)		(12.5	)
Net loan-loss provisions		(2,021	)		(2,537	)		516			(20.3	)
Other income		(197	)		(114	)		(83	)		72.8
Profit before taxes		1,340			1,415			(75	)		(5.3	)
Tax on profit		(302	)		(331	)		29			(8.8	)
Profit from continuing operations		1,038			1,084			(46	)		(4.2	)
Net profit from discontinued operations		(0	)		(2	)		2			(83.0	)
Consolidated profit		1,038			1,082			(44	)		(4.0	)
Minority interests		113			38			76			202.0
Attributable profit to the Group		924			1,044			(120	)		(11.5	)

* Including dividends, income from equity-accounted method and other operating income/expenses

Retail Banking Continental Europe

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		1,925			1,926			1,925			1,781			1,695			1,793			1,773
Net fees		733			721			710			692			745			769			735
Gains (losses) on financial transactions		107			49			62			56			77			115			109
Other operating income*		(38	)		(21	)		(50	)		(68	)		(63	)		(46	)		(59	)
Gross income		2,726			2,675			2,646			2,460			2,454			2,631			2,558
Operating expenses		(1,333	)		(1,315	)		(1,334	)		(1,351	)		(1,391	)		(1,346	)		(1,348	)
General administrative expenses		(1,200	)		(1,185	)		(1,199	)		(1,206	)		(1,242	)		(1,195	)		(1,198	)
Personnel		(735	)		(737	)		(744	)		(741	)		(770	)		(747	)		(742	)
Other general administrative expenses		(465	)		(448	)		(455	)		(465	)		(472	)		(448	)		(457	)
Depreciation and amortisation		(133	)		(130	)		(136	)		(145	)		(149	)		(151	)		(150	)
Net operating income		1,393			1,360			1,312			1,109			1,063			1,285			1,210
Net loan-loss provisions		(1,009	)		(898	)		(630	)		(843	)		(642	)		(863	)		(516	)
Other income		(62	)		(35	)		(17	)		(19	)		(62	)		(62	)		(72	)
Profit before taxes		322			427			665			247			359			359			622
Tax on profit		(67	)		(93	)		(170	)		(25	)		(78	)		(72	)		(152	)
Profit from continuing operations		255			333			495			222			280			288			470
Net profit from discontinued operations		1			(4	)		1			(5	)		—			(0	)		(0	)
Consolidated profit		256			329			496			217			280			288			470
Minority interests		12			13			12			9			28			41			44
Attributable profit to the Group		243			317			484			207			253			246			426

* Including dividends, income from equity-accounted method and other operating income/expenses

Retail Banking Spain

EUR million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		2,611			3,209			(598	)		(18.6	)
Net fees		1,201			1,201			1			0.0
Gains (losses) on financial transactions		192			133			59			44.2
Other operating income*		(173	)		(144	)		(29	)		20.5
Gross income		3,831			4,399			(569	)		(12.9	)
Operating expenses		(2,287	)		(2,311	)		24			(1.0	)
General administrative expenses		(2,093	)		(2,110	)		17			(0.8	)
Personnel		(1,347	)		(1,378	)		31			(2.3	)
Other general administrative expenses		(746	)		(732	)		(14	)		2.0
Depreciation and amortisation		(194	)		(201	)		7			(3.4	)
Net operating income		1,543			2,088			(545	)		(26.1	)
Net loan-loss provisions		(1,278	)		(1,587	)		310			(19.5	)
Other income		(89	)		(70	)		(19	)		26.7
Profit before taxes		177			431			(253	)		(58.9	)
Tax on profit		(52	)		(129	)		76			(59.2	)
Profit from continuing operations		125			302			(177	)		(58.7	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		125			302			(177	)		(58.7	)
Minority interests		0			1			(0	)		(40.6	)
Attributable profit to the Group		124			301			(177	)		(58.8	)

* Including dividends, income from equity-accounted method and other operating income/expenses

Retail Banking Spain

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		1,063			1,081			1,066			935			839			903			869
Net fees		395			412			393			420			407			417			377
Gains (losses) on financial transactions		53			48			32			33			35			89			68
Other operating income*		(46	)		(43	)		(55	)		(61	)		(59	)		(56	)		(58	)
Gross income		1,465			1,498			1,436			1,328			1,222			1,353			1,256
Operating expenses		(778	)		(762	)		(771	)		(769	)		(773	)		(757	)		(757	)
General administrative expenses		(709	)		(697	)		(705	)		(704	)		(709	)		(692	)		(692	)
Personnel		(461	)		(457	)		(461	)		(452	)		(459	)		(448	)		(440	)
Other general administrative expenses		(248	)		(240	)		(244	)		(252	)		(250	)		(244	)		(252	)
Depreciation and amortisation		(69	)		(66	)		(66	)		(65	)		(64	)		(65	)		(65	)
Net operating income		687			736			665			559			448			596			499
Net loan-loss provisions		(683	)		(582	)		(323	)		(557	)		(376	)		(616	)		(286	)
Other income		(31	)		(31	)		(8	)		(21	)		(26	)		(19	)		(44	)
Profit before taxes		(26	)		123			334			(19	)		47			(38	)		169
Tax on profit		8			(35	)		(101	)		5			(14	)		12			(50	)
Profit from continuing operations		(18	)		87			233			(13	)		32			(26	)		118
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		(18	)		87			233			(13	)		32			(26	)		118
Minority interests		0			0			0			0			0			0			0
Attributable profit to the Group		(18	)		87			232			(13	)		32			(26	)		118
*  Including dividends, income from equity-accounted method and other operating income/expenses
Other information
Spread		3.24			3.27			3.08			2.62			2.37			2.54			2.48
Loan spreads		1.60			1.59			1.64			1.81			2.21			2.26			2.33
Deposit spreads		1.64			1.68			1.44			0.81			0.16			0.28			0.15

Retail Banking Portugal

EUR million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		325			380			(56	)		(14.6	)
Net fees		193			208			(15	)		(7.1	)
Gains (losses) on financial transactions		13			92			(79	)		(85.9	)
Other operating income*		8			4			4			95.6
Gross income		539			685			(146	)		(21.3	)
Operating expenses		(343	)		(350	)		7			(2.1	)
General administrative expenses		(286	)		(293	)		7			(2.3	)
Personnel		(208	)		(213	)		5			(2.3	)
Other general administrative expenses		(78	)		(79	)		2			(2.1	)
Depreciation and amortisation		(57	)		(58	)		1			(1.1	)
Net operating income		196			334			(139	)		(41.4	)
Net loan-loss provisions		(152	)		(321	)		169			(52.6	)
Other income		(43	)		(8	)		(35	)		437.7
Profit before taxes		1			5			(5	)		(89.9	)
Tax on profit		2			12			(10	)		(83.2	)
Profit from continuing operations		3			17			(15	)		(85.3	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		3			17			(15	)		(85.3	)
Minority interests		(0	)		(0	)		(0	)		144.4
Attributable profit to the Group		3			17			(15	)		(84.6	)

* Including dividends, income from equity-accounted method and other operating income/expenses

Retail Banking Portugal

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		124			131			126			102			97			115			113
Net fees		73			69			66			61			65			66			63
Gains (losses) on financial transactions		65			1			26			(6	)		8			0			5
Other operating income*		1			2			1			(1	)		3			2			3
Gross income		262			204			219			156			173			183			184
Operating expenses		(117	)		(117	)		(116	)		(119	)		(115	)		(113	)		(115	)
General administrative expenses		(98	)		(97	)		(97	)		(99	)		(96	)		(94	)		(96	)
Personnel		(71	)		(71	)		(71	)		(72	)		(70	)		(69	)		(69	)
Other general administrative expenses		(27	)		(26	)		(27	)		(27	)		(26	)		(25	)		(26	)
Depreciation and amortisation		(20	)		(19	)		(19	)		(20	)		(19	)		(19	)		(19	)
Net operating income		145			87			103			37			57			70			69
Net loan-loss provisions		(130	)		(86	)		(105	)		(48	)		(58	)		(56	)		(38	)
Other income		(16	)		1			7			0			(12	)		(19	)		(13	)
Profit before taxes		(1	)		2			4			(11	)		(13	)		(5	)		18
Tax on profit		3			5			3			26			3			3			(5	)
Profit from continuing operations		3			8			7			15			(10	)		(1	)		13
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		3			8			7			15			(10	)		(1	)		13
Minority interests		(0	)		(0	)		0			(0	)		(0	)		0			(0	)
Attributable profit to the Group		3			8			7			15			(10	)		(1	)		14
*  Including dividends, income from equity-accounted method and other operating income/expenses
Other information
Spread		1.43			1.43			1.34			1.23			1.22			1.26			1.38
Loan spreads		2.34			2.39			2.47			2.47			2.44			2.44			2.44
Deposit spreads		(0.91	)		(0.96	)		(1.13	)		(1.24	)		(1.22	)		(1.18	)		(1.06	)

Retail Banking Poland

EUR million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		559			396			163			41.1
Net fees		254			154			100			65.3
Gains (losses) on financial transactions		93			2			91			—
Other operating income*		3			31			(28	)		(90.4	)
Gross income		909			584			326			55.8
Operating expenses		(399	)		(279	)		(120	)		43.0
General administrative expenses		(360	)		(256	)		(105	)		40.9
Personnel		(210	)		(149	)		(61	)		41.1
Other general administrative expenses		(150	)		(107	)		(43	)		40.7
Depreciation and amortisation		(39	)		(23	)		(15	)		65.9
Net operating income		510			304			205			67.5
Net loan-loss provisions		(128	)		(79	)		(49	)		61.4
Other income		0			6			(6	)		(92.4	)
Profit before taxes		383			232			151			65.2
Tax on profit		(74	)		(50	)		(24	)		48.4
Profit from continuing operations		309			182			127			69.9
Net profit from discontinued operations		—			—			—			—
Consolidated profit		309			182			127			69.9
Minority interests		87			8			80			—
Attributable profit to the Group		221			174			47			27.1

* Including dividends, income from equity-accounted method and other operating income/expenses

Retail Banking Poland

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		127			132			137			139			176			185			198
Net fees		59			41			54			56			84			85			85
Gains (losses) on financial transactions		(6	)		(3	)		11			32			33			26			34
Other operating income*		6			19			6			3			(4	)		12			(5	)
Gross income		186			189			208			231			289			308			312
Operating expenses		(93	)		(93	)		(93	)		(97	)		(145	)		(130	)		(125	)
General administrative expenses		(85	)		(85	)		(86	)		(90	)		(131	)		(116	)		(113	)
Personnel		(50	)		(49	)		(50	)		(54	)		(76	)		(68	)		(66	)
Other general administrative expenses		(35	)		(36	)		(36	)		(36	)		(55	)		(49	)		(46	)
Depreciation and amortisation		(8	)		(8	)		(8	)		(8	)		(13	)		(13	)		(12	)
Net operating income		93			96			115			134			144			179			187
Net loan-loss provisions		(20	)		(32	)		(27	)		(32	)		(41	)		(52	)		(35	)
Other income		3			1			2			1			(4	)		4			0
Profit before taxes		76			66			89			102			99			131			153
Tax on profit		(17	)		(13	)		(19	)		(22	)		(20	)		(23	)		(31	)
Profit from continuing operations		59			52			70			80			79			108			122
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		59			52			70			80			79			108			122
Minority interests		2			3			3			5			20			32			35
Attributable profit to the Group		57			50			67			76			59			76			86
*  Including dividends, income from equity-accounted method and other operating income/expenses
Other information
Spread		4.56			4.59			4.57			4.44			3.14			3.17			3.16
Loan spreads		3.29			3.33			3.41			3.48			2.41			2.45			2.43
Deposit spreads		1.27			1.26			1.16			0.96			0.73			0.72			0.73

Retail Banking Poland

PLN million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		2,347			1,666			681			40.9
Net fees		1,067			647			421			65.1
Gains (losses) on financial transactions		391			10			381			—
Other operating income*		13			131			(118	)		(90.4	)
Gross income		3,818			2,454			1,364			55.6
Operating expenses		(1,677	)		(1,174	)		(503	)		42.8
General administrative expenses		(1,513	)		(1,075	)		(438	)		40.7
Personnel		(884	)		(627	)		(257	)		40.9
Other general administrative expenses		(629	)		(448	)		(181	)		40.5
Depreciation and amortisation		(163	)		(99	)		(65	)		65.6
Net operating income		2,142			1,280			861			67.3
Net loan-loss provisions		(536	)		(333	)		(203	)		61.2
Other income		2			26			(24	)		(92.4	)
Profit before taxes		1,608			974			633			65.0
Tax on profit		(310	)		(209	)		(101	)		48.2
Profit from continuing operations		1,297			765			533			69.6
Net profit from discontinued operations		—			—			—			—
Consolidated profit		1,297			765			533			69.6
Minority interests		367			32			335			—
Attributable profit to the Group		930			733			197			26.9

* Including dividends, income from equity-accounted method and other operating income/expenses

Retail Banking Poland

PLN million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		536			563			568			571			730			778			839
Net fees		251			174			221			232			350			356			362
Gains (losses) on financial transactions		(27	)		(11	)		49			135			138			109			144
Other operating income*		27			80			23			14			(17	)		49			(20	)
Gross income		788			805			861			952			1,201			1,293			1,325
Operating expenses		(393	)		(395	)		(386	)		(400	)		(601	)		(544	)		(532	)
General administrative expenses		(359	)		(362	)		(354	)		(368	)		(545	)		(488	)		(480	)
Personnel		(211	)		(211	)		(206	)		(222	)		(317	)		(285	)		(282	)
Other general administrative expenses		(149	)		(151	)		(148	)		(147	)		(228	)		(204	)		(197	)
Depreciation and amortisation		(34	)		(33	)		(32	)		(32	)		(56	)		(56	)		(52	)
Net operating income		394			410			476			552			600			748			793
Net loan-loss provisions		(85	)		(135	)		(113	)		(133	)		(172	)		(217	)		(147	)
Other income		14			5			7			2			(15	)		16			1
Profit before taxes		324			281			370			421			413			548			647
Tax on profit		(73	)		(57	)		(79	)		(90	)		(82	)		(97	)		(131	)
Profit from continuing operations		251			223			290			331			330			451			516
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		251			223			290			331			330			451			516
Minority interests		9			11			12			19			84			133			150
Attributable profit to the Group		242			213			278			312			247			317			366

* Including dividends, income from equity-accounted method and other operating income/expenses

Retail Banking United Kingdom

EUR million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		2,454			2,535			(81	)		(3.2	)
Net fees		609			702			(93	)		(13.3	)
Gains (losses) on financial transactions		145			(3	)		147			—
Other operating income*		8			5			3			69.2
Gross income		3,215			3,239			(24	)		(0.7	)
Operating expenses		(1,759	)		(1,833	)		73			(4.0	)
General administrative expenses		(1,468	)		(1,540	)		73			(4.7	)
Personnel		(911	)		(1,004	)		93			(9.3	)
Other general administrative expenses		(557	)		(537	)		(20	)		3.8
Depreciation and amortisation		(291	)		(292	)		1			(0.3	)
Net operating income		1,456			1,406			50			3.5
Net loan-loss provisions		(423	)		(607	)		184			(30.4	)
Other income		(164	)		(120	)		(44	)		36.9
Ordinary profit before taxes		869			679			190			28.0
Tax on profit		(188	)		(169	)		(19	)		11.1
Ordinary profit from continuing operations		682			510			171			33.5
Net profit from discontinued operations		(14	)		52			(66	)		—
Ordinary consolidated profit		667			562			105			18.7
Minority interests		0			0			(0	)		(60.0	)
Ordinary attributable profit to the Group		667			562			105			18.7
Net capital gains and provisions		—			81			(81	)		(100.0	)
Attributable profit to the Group		667			643			25			3.8

* Including dividends, income from equity-accounted method and other operating income/expenses

Retail Banking United Kingdom

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		900			820			816			772			795			796			862
Net fees		214			236			252			263			202			198			209
Gains (losses) on financial transactions		(20	)		29			(11	)		(25	)		15			144			(14	)
Other operating income*		3			4			(2	)		2			2			3			3
Gross income		1,096			1,089			1,055			1,012			1,014			1,142			1,060
Operating expenses		(594	)		(619	)		(620	)		(578	)		(592	)		(602	)		(565	)
General administrative expenses		(502	)		(531	)		(508	)		(496	)		(495	)		(507	)		(465	)
Personnel		(323	)		(333	)		(348	)		(318	)		(313	)		(312	)		(285	)
Other general administrative expenses		(180	)		(198	)		(159	)		(177	)		(182	)		(195	)		(180	)
Depreciation and amortisation		(92	)		(88	)		(112	)		(83	)		(97	)		(95	)		(100	)
Net operating income		502			469			435			433			421			540			495
Net loan-loss provisions		(214	)		(212	)		(181	)		(198	)		(154	)		(122	)		(147	)
Other income		(49	)		(41	)		(30	)		(30	)		(37	)		(100	)		(27	)
Ordinary profit before taxes		239			217			224			205			230			318			321
Tax on profit		(66	)		(49	)		(54	)		(51	)		(49	)		(69	)		(70	)
Ordinary profit from continuing operations		173			168			169			154			181			249			251
Net profit from discontinued operations		17			15			20			25			—			(14	)		(0	)
Ordinary consolidated profit		190			183			190			178			181			236			251
Minority interests		0			0			0			0			0			—			0
Ordinary attributable profit to the Group		190			183			190			178			181			236			251
Net capital gains and provisions		—			—			81			—			—			—			—
Attributable profit to the Group		190			183			270			178			181			236			251
*  Including dividends, income from equity-accounted method and other operating income/expenses
Other information
Spread		1.47			1.36			1.34			1.39			1.53			1.63			1.85
Loan spreads		2.49			2.54			2.60			2.66			2.78			2.80			2.85
Deposit spreads		(1.02	)		(1.18	)		(1.26	)		(1.27	)		(1.25	)		(1.17	)		(1.00	)

Retail Banking United Kingdom

£ million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		2,090			2,058			33			1.6
Net fees		518			570			(51	)		(9.0	)
Gains (losses) on financial transactions		123			(2	)		125			—
Other operating income*		7			4			3			77.6
Gross income		2,739			2,629			110			4.2
Operating expenses		(1,499	)		(1,488	)		(11	)		0.7
General administrative expenses		(1,250	)		(1,250	)		(0	)		0.0
Personnel		(776	)		(815	)		39			(4.8	)
Other general administrative expenses		(475	)		(436	)		(39	)		8.9
Depreciation and amortisation		(248	)		(237	)		(11	)		4.6
Net operating income		1,240			1,141			99			8.7
Net loan-loss provisions		(360	)		(493	)		133			(26.9	)
Other income		(140	)		(97	)		(42	)		43.7
Ordinary profit before taxes		740			551			189			34.3
Tax on profit		(160	)		(137	)		(23	)		16.6
Ordinary profit from continuing operations		581			414			166			40.1
Net profit from discontinued operations		(12	)		42			(54	)		—
Ordinary consolidated profit		569			456			112			24.6
Minority interests		0			0			(0	)		(58.0	)
Ordinary attributable profit to the Group		569			456			112			24.6
Net capital gains and provisions		—			65			(65	)		(100.0	)
Attributable profit to the Group		569			522			47			9.0

* Including dividends, income from equity-accounted method and other operating income/expenses

Retail Banking United Kingdom

£ million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		751			663			644			623			676			677			737
Net fees		178			192			199			212			171			169			178
Gains (losses) on financial transactions		(17	)		24			(9	)		(20	)		12			123			(12	)
Other operating income*		2			3			(1	)		2			2			3			2
Gross income		915			882			833			817			862			971			905
Operating expenses		(495	)		(502	)		(490	)		(467	)		(504	)		(512	)		(483	)
General administrative expenses		(419	)		(430	)		(401	)		(400	)		(421	)		(431	)		(398	)
Personnel		(269	)		(270	)		(276	)		(257	)		(267	)		(266	)		(244	)
Other general administrative expenses		(150	)		(161	)		(125	)		(143	)		(155	)		(166	)		(154	)
Depreciation and amortisation		(76	)		(72	)		(89	)		(67	)		(83	)		(81	)		(85	)
Net operating income		419			380			342			350			358			459			423
Net loan-loss provisions		(178	)		(172	)		(143	)		(160	)		(131	)		(104	)		(125	)
Other income		(41	)		(33	)		(23	)		(25	)		(31	)		(85	)		(23	)
Ordinary profit before taxes		200			175			177			165			196			270			274
Tax on profit		(55	)		(39	)		(43	)		(41	)		(42	)		(58	)		(60	)
Ordinary profit from continuing operations		145			136			134			124			154			212			214
Net profit from discontinued operations		14			12			16			20			—			(12	)		(0	)
Ordinary consolidated profit		158			148			150			144			154			200			214
Minority interests		0			0			0			0			0			(0	)		0
Ordinary attributable profit to the Group		158			148			150			144			154			200			214
Net capital gains and provisions		—			—			65			(0	)		—			—			—
Attributable profit to the Group		158			148			215			144			154			200			214

* Including dividends, income from equity-accounted method and other operating income/expenses

Retail Banking Latin America

EUR million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		10,635			12,548			(1,913	)		(15.2	)
Net fees		3,096			3,252			(156	)		(4.8	)
Gains (losses) on financial transactions		456			498			(42	)		(8.5	)
Other operating income*		(106	)		(207	)		102			(49.1	)
Gross income		14,081			16,091			(2,010	)		(12.5	)
Operating expenses		(5,919	)		(6,192	)		273			(4.4	)
General administrative expenses		(5,297	)		(5,618	)		321			(5.7	)
Personnel		(2,900	)		(3,125	)		225			(7.2	)
Other general administrative expenses		(2,397	)		(2,493	)		96			(3.9	)
Depreciation and amortisation		(622	)		(574	)		(48	)		8.3
Net operating income		8,162			9,898			(1,736	)		(17.5	)
Net loan-loss provisions		(4,899	)		(5,586	)		687			(12.3	)
Other income		(352	)		(736	)		384			(52.2	)
Profit before taxes		2,912			3,577			(665	)		(18.6	)
Tax on profit		(586	)		(761	)		175			(23.0	)
Profit from continuing operations		2,326			2,815			(490	)		(17.4	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		2,326			2,815			(490	)		(17.4	)
Minority interests		506			454			52			11.5
Attributable profit to the Group		1,819			2,361			(542	)		(23.0	)

* Including dividends, income from equity-accounted method and other operating income/expenses

Retail Banking Latin America

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		4,263			4,192			4,093			3,848			3,710			3,655			3,269
Net fees		1,126			1,037			1,088			1,057			1,073			1,073			950
Gains (losses) on financial transactions		83			208			207			179			245			76			135
Other operating income*		(95	)		(53	)		(59	)		(52	)		(41	)		(28	)		(37	)
Gross income		5,377			5,384			5,330			5,032			4,987			4,777			4,317
Operating expenses		(2,105	)		(1,991	)		(2,096	)		(2,116	)		(1,995	)		(2,014	)		(1,909	)
General administrative expenses		(1,917	)		(1,807	)		(1,894	)		(1,908	)		(1,785	)		(1,800	)		(1,713	)
Personnel		(1,064	)		(1,018	)		(1,043	)		(1,033	)		(988	)		(986	)		(926	)
Other general administrative expenses		(853	)		(789	)		(851	)		(874	)		(796	)		(814	)		(786	)
Depreciation and amortisation		(188	)		(184	)		(202	)		(209	)		(211	)		(214	)		(197	)
Net operating income		3,272			3,393			3,234			2,916			2,992			2,763			2,408
Net loan-loss provisions		(1,734	)		(1,996	)		(1,855	)		(1,741	)		(1,793	)		(1,684	)		(1,421	)
Other income		(247	)		(251	)		(238	)		(76	)		(62	)		(145	)		(145	)
Profit before taxes		1,290			1,145			1,142			1,099			1,136			934			841
Tax on profit		(259	)		(239	)		(264	)		(177	)		(217	)		(164	)		(205	)
Profit from continuing operations		1,032			906			878			922			919			770			637
Net profit from discontinued operations		—			0			(0	)		—			—			—			—
Consolidated profit		1,032			906			878			922			919			770			637
Minority interests		172			155			127			185			207			152			147
Attributable profit to the Group		859			751			751			738			712			618			490

* Including dividends, income from equity-accounted method and other operating income/expenses

Retail Banking Brazil

EUR million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		7,165			9,130			(1,965	)		(21.5	)
Net fees		1,861			2,028			(167	)		(8.2	)
Gains (losses) on financial transactions		298			427			(129	)		(30.1	)
Other operating income*		(61	)		(160	)		99			(61.8	)
Gross income		9,263			11,424			(2,162	)		(18.9	)
Operating expenses		(3,687	)		(4,087	)		400			(9.8	)
General administrative expenses		(3,285	)		(3,709	)		424			(11.4	)
Personnel		(1,742	)		(2,023	)		282			(13.9	)
Other general administrative expenses		(1,544	)		(1,685	)		142			(8.4	)
Depreciation and amortisation		(402	)		(378	)		(24	)		6.3
Net operating income		5,576			7,338			(1,762	)		(24.0	)
Net loan-loss provisions		(3,857	)		(4,719	)		862			(18.3	)
Other income		(333	)		(706	)		373			(52.8	)
Profit before taxes		1,385			1,912			(527	)		(27.6	)
Tax on profit		(355	)		(482	)		127			(26.4	)
Profit from continuing operations		1,031			1,430			(400	)		(27.9	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		1,031			1,430			(400	)		(27.9	)
Minority interests		243			327			(84	)		(25.7	)
Attributable profit to the Group		788			1,103			(316	)		(28.6	)

* Including dividends, income from equity-accounted method and other operating income/expenses

Retail Banking Brazil

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		3,114			3,071			2,946			2,634			2,567			2,494			2,104
Net fees		726			628			674			635			661			648			551
Gains (losses) on financial transactions		68			176			184			138			213			10			76
Other operating income*		(80	)		(40	)		(40	)		(28	)		(23	)		(21	)		(17	)
Gross income		3,827			3,834			3,763			3,379			3,417			3,132			2,713
Operating expenses		(1,421	)		(1,309	)		(1,357	)		(1,348	)		(1,263	)		(1,256	)		(1,169	)
General administrative expenses		(1,299	)		(1,190	)		(1,219	)		(1,208	)		(1,125	)		(1,116	)		(1,045	)
Personnel		(708	)		(649	)		(667	)		(656	)		(612	)		(587	)		(542	)
Other general administrative expenses		(591	)		(542	)		(552	)		(553	)		(513	)		(528	)		(503	)
Depreciation and amortisation		(122	)		(119	)		(137	)		(140	)		(138	)		(140	)		(124	)
Net operating income		2,406			2,525			2,406			2,031			2,155			1,877			1,544
Net loan-loss provisions		(1,486	)		(1,728	)		(1,505	)		(1,380	)		(1,469	)		(1,328	)		(1,061	)
Other income		(222	)		(244	)		(241	)		(98	)		(77	)		(131	)		(125	)
Profit before taxes		699			553			660			553			609			417			359
Tax on profit		(163	)		(128	)		(190	)		(91	)		(149	)		(90	)		(115	)
Profit from continuing operations		535			425			470			462			460			328			243
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		535			425			470			462			460			328			243
Minority interests		124			107			96			94			115			65			63
Attributable profit to the Group		412			318			374			367			345			263			180
*  Including dividends, income from equity-accounted method and other operating income/expenses
Other information
Spread		15.17			15.49			14.81			13.92			13.81			13.26			12.77
Loan spreads		14.44			14.84			14.25			13.41			13.09			12.51			11.93
Deposit spreads		0.73			0.65			0.56			0.51			0.72			0.75			0.84

Retail Banking Brazil

R$ million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		19,909			22,367			(2,457	)		(11.0	)
Net fees		5,171			4,967			204			4.1
Gains (losses) on financial transactions		829			1,046			(217	)		(20.8	)
Other operating income*		(170	)		(393	)		223			(56.6	)
Gross income		25,739			27,987			(2,248	)		(8.0	)
Operating expenses		(10,246	)		(10,012	)		(234	)		2.3
General administrative expenses		(9,129	)		(9,086	)		(43	)		0.5
Personnel		(4,840	)		(4,957	)		117			(2.4	)
Other general administrative expenses		(4,289	)		(4,129	)		(160	)		3.9
Depreciation and amortisation		(1,116	)		(926	)		(191	)		20.6
Net operating income		15,494			17,975			(2,482	)		(13.8	)
Net loan-loss provisions		(10,718	)		(11,560	)		843			(7.3	)
Other income		(926	)		(1,730	)		804			(46.5	)
Profit before taxes		3,850			4,685			(835	)		(17.8	)
Tax on profit		(985	)		(1,181	)		195			(16.5	)
Profit from continuing operations		2,864			3,504			(640	)		(18.3	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		2,864			3,504			(640	)		(18.3	)
Minority interests		676			802			(126	)		(15.7	)
Attributable profit to the Group		2,189			2,703			(514	)		(19.0	)

* Including dividends, income from equity-accounted method and other operating income/expenses

Retail Banking Brazil

R$ million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		7,210			7,687			7,470			7,056			6,764			6,719			6,426
Net fees		1,681			1,580			1,706			1,693			1,743			1,746			1,682
Gains (losses) on financial transactions		156			430			460			367			561			32			237
Other operating income*		(185	)		(104	)		(104	)		(78	)		(61	)		(55	)		(54	)
Gross income		8,863			9,592			9,533			9,039			9,006			8,442			8,291
Operating expenses		(3,291	)		(3,285	)		(3,436	)		(3,583	)		(3,328	)		(3,381	)		(3,537	)
General administrative expenses		(3,008	)		(2,988	)		(3,089	)		(3,213	)		(2,964	)		(3,004	)		(3,161	)
Personnel		(1,639	)		(1,628	)		(1,689	)		(1,744	)		(1,613	)		(1,583	)		(1,644	)
Other general administrative expenses		(1,369	)		(1,360	)		(1,400	)		(1,469	)		(1,351	)		(1,421	)		(1,517	)
Depreciation and amortisation		(283	)		(297	)		(346	)		(369	)		(363	)		(377	)		(376	)
Net operating income		5,572			6,307			6,097			5,456			5,679			5,061			4,754
Net loan-loss provisions		(3,441	)		(4,302	)		(3,818	)		(3,694	)		(3,870	)		(3,580	)		(3,268	)
Other income		(513	)		(608	)		(610	)		(281	)		(204	)		(352	)		(371	)
Profit before taxes		1,618			1,397			1,669			1,481			1,605			1,130			1,115
Tax on profit		(378	)		(324	)		(478	)		(253	)		(394	)		(243	)		(348	)
Profit from continuing operations		1,240			1,073			1,191			1,228			1,211			886			767
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		1,240			1,073			1,191			1,228			1,211			886			767
Minority interests		287			269			245			253			303			176			197
Attributable profit to the Group		953			804			946			975			908			710			570

* Including dividends, income from equity-accounted method and other operating income/expenses

Retail Banking Mexico

EUR million

							Variation
	9M ’3			9M ’12			Amount			%
Income statement
Net interest income		1,453			1,316			138			10.5
Net fees		481			418			64			15.3
Gains (losses) on financial transactions		28			(1	)		28			—
Other operating income*		(26	)		(28	)		2			(8.8	)
Gross income		1,936			1,704			232			13.6
Operating expenses		(821	)		(707	)		(114	)		16.1
General administrative expenses		(736	)		(632	)		(105	)		16.6
Personnel		(399	)		(342	)		(57	)		16.8
Other general administrative expenses		(337	)		(290	)		(47	)		16.4
Depreciation and amortisation		(85	)		(76	)		(9	)		11.7
Net operating income		1,115			997			118			11.9
Net loan-loss provisions		(470	)		(305	)		(165	)		54.1
Other income		21			33			(12	)		(37.1	)
Profit before taxes		667			726			(59	)		(8.1	)
Tax on profit		(60	)		(89	)		30			(33.1	)
Profit from continuing operations		607			636			(29	)		(4.6	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		607			636			(29	)		(4.6	)
Minority interests		151			1			150			—
Attributable profit to the Group		456			635			(179	)		(28.2	)

* Including dividends, income from equity-accounted method and other operating income/expenses

Retail Banking Mexico

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		422			428			466			475			478			494			481
Net fees		137			133			147			161			159			163			160
Gains (losses) on financial transactions		7			0			(7	)		20			4			15			9
Other operating income*		(8	)		(6	)		(14	)		(15	)		(12	)		0			(14	)
Gross income		558			555			592			641			629			672			635
Operating expenses		(221	)		(221	)		(265	)		(300	)		(269	)		(274	)		(278	)
General administrative expenses		(195	)		(196	)		(241	)		(275	)		(241	)		(244	)		(251	)
Personnel		(111	)		(111	)		(120	)		(126	)		(129	)		(133	)		(138	)
Other general administrative expenses		(84	)		(84	)		(122	)		(150	)		(112	)		(111	)		(113	)
Depreciation and amortisation		(26	)		(26	)		(24	)		(25	)		(28	)		(30	)		(27	)
Net operating income		337			334			327			341			360			398			357
Net loan-loss provisions		(77	)		(99	)		(129	)		(152	)		(142	)		(164	)		(164	)
Other income		(2	)		29			6			22			26			(1	)		(3	)
Profit before taxes		257			264			204			211			244			233			190
Tax on profit		(26	)		(49	)		(14	)		(21	)		(10	)		(23	)		(27	)
Profit from continuing operations		232			215			189			189			234			209			164
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		232			215			189			189			234			209			164
Minority interests		0			0			0			45			56			53			42
Attributable profit to the Group		231			215			189			144			178			156			122
*  Including dividends, income from equity-accounted method and other operating income/expenses
Other information
Spread		10.16			10.27			10.26			10.49			10.32			10.05			9.90
Loan spreads		8.20			8.35			8.33			8.49			8.46			8.41			8.34
Deposit spreads		1.96			1.92			1.93			2.00			1.86			1.64			1.56

Retail Banking Mexico

Million pesos

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		24,235			22,275			1,960			8.8
Net fees		8,030			7,072			958			13.5
Gains (losses) on financial transactions		461			(9	)		470			—
Other operating income*		(430	)		(479	)		49			(10.2	)
Gross income		32,296			28,859			3,437			11.9
Operating expenses		(13,693	)		(11,977	)		(1,717	)		14.3
General administrative expenses		(12,280	)		(10,693	)		(1,588	)		14.8
Personnel		(6,659	)		(5,789	)		(870	)		15.0
Other general administrative expenses		(5,621	)		(4,904	)		(717	)		14.6
Depreciation and amortisation		(1,413	)		(1,284	)		(129	)		10.1
Net operating income		18,602			16,882			1,720			10.2
Net loan-loss provisions		(7,831	)		(5,159	)		(2,672	)		51.8
Other income		350			565			(215	)		(38.0	)
Profit before taxes		11,121			12,288			(1,167	)		(9.5	)
Tax on profit		(997	)		(1,512	)		515			(34.1	)
Profit from continuing operations		10,124			10,776			(652	)		(6.0	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		10,124			10,776			(652	)		(6.0	)
Minority interests		2,518			19			2,499			—
Attributable profit to the Group		7,606			10,756			(3,150	)		(29.3	)

* Including dividends, income from equity-accounted method and other operating income/expenses

Retail Banking Mexico

Million pesos

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		7,179			7,416			7,680			7,974			7,976			8,037			8,222
Net fees		2,327			2,315			2,431			2,700			2,657			2,644			2,729
Gains (losses) on financial transactions		114			3			(126	)		338			72			240			150
Other operating income*		(132	)		(111	)		(237	)		(250	)		(201	)		4			(234	)
Gross income		9,488			9,624			9,747			10,761			10,503			10,925			10,867
Operating expenses		(3,760	)		(3,835	)		(4,382	)		(5,043	)		(4,491	)		(4,452	)		(4,751	)
General administrative expenses		(3,311	)		(3,391	)		(3,990	)		(4,631	)		(4,030	)		(3,962	)		(4,288	)
Personnel		(1,890	)		(1,930	)		(1,969	)		(2,109	)		(2,153	)		(2,154	)		(2,352	)
Other general administrative expenses		(1,421	)		(1,462	)		(2,021	)		(2,522	)		(1,877	)		(1,809	)		(1,935	)
Depreciation and amortisation		(449	)		(443	)		(392	)		(413	)		(461	)		(489	)		(463	)
Net operating income		5,728			5,789			5,365			5,718			6,013			6,473			6,117
Net loan-loss provisions		(1,314	)		(1,708	)		(2,137	)		(2,553	)		(2,370	)		(2,670	)		(2,791	)
Other income		(34	)		505			94			367			429			(26	)		(53	)
Profit before taxes		4,381			4,585			3,322			3,532			4,071			3,778			3,273
Tax on profit		(441	)		(846	)		(225	)		(358	)		(167	)		(381	)		(449	)
Profit from continuing operations		3,940			3,739			3,097			3,174			3,905			3,397			2,823
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		3,940			3,739			3,097			3,174			3,905			3,397			2,823
Minority interests		7			6			6			765			939			860			720
Attributable profit to the Group		3,932			3,733			3,091			2,409			2,966			2,537			2,103

* Including dividends, income from equity-accounted method and other operating income/expenses

Retail Banking Chile

EUR million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		1,176			1,173			4			0.3
Net fees		255			294			(39	)		(13.3	)
Gains (losses) on financial transactions		63			29			34			116.7
Other operating income*		(11	)		(13	)		2			(18.5	)
Gross income		1,483			1,482			1			0.1
Operating expenses		(643	)		(622	)		(21	)		3.4
General administrative expenses		(567	)		(556	)		(10	)		1.9
Personnel		(349	)		(347	)		(3	)		0.8
Other general administrative expenses		(217	)		(209	)		(8	)		3.7
Depreciation and amortisation		(77	)		(66	)		(10	)		15.8
Net operating income		840			860			(20	)		(2.3	)
Net loan-loss provisions		(449	)		(420	)		(28	)		6.7
Other income		8			(1	)		9			—
Profit before taxes		400			439			(39	)		(8.9	)
Tax on profit		(53	)		(52	)		(1	)		2.1
Profit from continuing operations		347			387			(40	)		(10.3	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		347			387			(40	)		(10.3	)
Minority interests		112			124			(13	)		(10.3	)
Attributable profit to the Group		235			262			(27	)		(10.4	)

* Including dividends, income from equity-accounted method and other operating income/expenses

Retail Banking Chile

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		403			386			384			441			381			379			416
Net fees		97			98			99			94			91			87			77
Gains (losses) on financial transactions		(6	)		19			17			0			11			31			21
Other operating income*		(5	)		(4	)		(5	)		(10	)		(3	)		(3	)		(5	)
Gross income		488			499			495			524			480			495			508
Operating expenses		(193	)		(211	)		(219	)		(217	)		(210	)		(223	)		(210	)
General administrative expenses		(172	)		(188	)		(196	)		(191	)		(183	)		(199	)		(185	)
Personnel		(105	)		(120	)		(121	)		(120	)		(112	)		(123	)		(114	)
Other general administrative expenses		(67	)		(68	)		(75	)		(71	)		(71	)		(75	)		(71	)
Depreciation and amortisation		(20	)		(23	)		(23	)		(26	)		(27	)		(25	)		(25	)
Net operating income		295			288			276			307			270			272			298
Net loan-loss provisions		(125	)		(121	)		(174	)		(161	)		(151	)		(146	)		(151	)
Other income		(4	)		(9	)		13			6			(0	)		3			5
Profit before taxes		166			158			115			152			119			129			152
Tax on profit		(21	)		(16	)		(15	)		(13	)		(9	)		(23	)		(21	)
Profit from continuing operations		145			142			100			139			110			105			131
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		145			142			100			139			110			105			131
Minority interests		48			47			30			45			36			34			42
Attributable profit to the Group		97			95			70			94			74			71			90
*  Including dividends, income from equity-accounted method and other operating income/expenses
Other information
Spread		7.01			6.98			6.84			6.61			6.70			6.74			6.43
Loan spreads		4.56			4.62			4.48			4.36			4.31			4.27			4.01
Deposit spreads		2.45			2.36			2.36			2.25			2.39			2.47			2.42

Retail Banking Chile

Ch$ million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		755,591			734,192			21,398			2.9
Net fees		163,538			183,957			(20,419	)		(11.1	)
Gains (losses) on financial transactions		40,731			18,322			22,409			122.3
Other operating income*		(7,060	)		(8,442	)		1,382			(16.4	)
Gross income		952,800			928,029			24,771			2.7
Operating expenses		(413,179	)		(389,695	)		(23,483	)		6.0
General administrative expenses		(363,877	)		(348,178	)		(15,698	)		4.5
Personnel		(224,343	)		(217,051	)		(7,292	)		3.4
Other general administrative expenses		(139,534	)		(131,128	)		(8,406	)		6.4
Depreciation and amortisation		(49,302	)		(41,517	)		(7,785	)		18.8
Net operating income		539,621			538,334			1,287			0.2
Net loan-loss provisions		(288,101	)		(263,093	)		(25,008	)		9.5
Other income		5,148			(665	)		5,813			—
Profit before taxes		256,669			274,577			(17,908	)		(6.5	)
Tax on profit		(33,967	)		(32,432	)		(1,534	)		4.7
Profit from continuing operations		222,702			242,144			(19,442	)		(8.0	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		222,702			242,144			(19,442	)		(8.0	)
Minority interests		71,725			77,904			(6,179	)		(7.9	)
Attributable profit to the Group		150,977			164,241			(13,264	)		(8.1	)

* Including dividends, income from equity-accounted method and other operating income/expenses

Retail Banking Chile

Ch$ million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		257,846			245,846			230,500			273,187			237,789			239,964			277,837
Net fees		61,906			62,234			59,817			58,031			56,538			55,229			51,771
Gains (losses) on financial transactions		(4,149	)		11,873			10,598			(2	)		6,987			19,615			14,129
Other operating income*		(3,143	)		(2,236	)		(3,063	)		(6,474	)		(1,906	)		(1,692	)		(3,462	)
Gross income		312,459			317,718			297,852			324,741			299,408			313,117			340,275
Operating expenses		(123,461	)		(134,121	)		(132,113	)		(134,333	)		(130,991	)		(141,155	)		(141,033	)
General administrative expenses		(110,394	)		(119,716	)		(118,068	)		(118,170	)		(114,271	)		(125,540	)		(124,065	)
Personnel		(67,451	)		(76,587	)		(73,013	)		(74,324	)		(69,860	)		(77,929	)		(76,554	)
Other general administrative expenses		(42,943	)		(43,129	)		(45,056	)		(43,846	)		(44,411	)		(47,611	)		(47,512	)
Depreciation and amortisation		(13,067	)		(14,405	)		(14,045	)		(16,163	)		(16,719	)		(15,615	)		(16,968	)
Net operating income		188,998			183,597			165,739			190,409			168,417			171,962			199,242
Net loan-loss provisions		(79,959	)		(77,305	)		(105,828	)		(99,794	)		(94,328	)		(92,497	)		(101,276	)
Other income		(2,877	)		(5,830	)		8,042			3,483			(91	)		1,787			3,452
Profit before taxes		106,162			100,462			67,952			94,097			73,998			81,252			101,418
Tax on profit		(13,519	)		(10,129	)		(8,784	)		(7,913	)		(5,357	)		(14,639	)		(13,971	)
Profit from continuing operations		92,643			90,333			59,168			86,184			68,642			66,614			87,446
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		92,643			90,333			59,168			86,184			68,642			66,614			87,446
Minority interests		30,442			29,716			17,746			27,699			22,395			21,632			27,698
Attributable profit to the Group		62,201			60,617			41,422			58,485			46,246			44,982			59,749

* Including dividends, income from equity-accounted method and other operating income/expenses

Retail Banking USA

EUR million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		1,015			1,223			(208	)		(17.0	)
Net fees		246			254			(8	)		(3.1	)
Gains (losses) on financial transactions		46			172			(126	)		(73.1	)
Other operating income*		241			222			19			8.7
Gross income		1,548			1,871			(323	)		(17.2	)
Operating expenses		(889	)		(847	)		(41	)		4.9
General administrative expenses		(771	)		(739	)		(31	)		4.3
Personnel		(435	)		(409	)		(26	)		6.3
Other general administrative expenses		(335	)		(330	)		(5	)		1.7
Depreciation and amortisation		(118	)		(108	)		(10	)		9.0
Net operating income		660			1,024			(364	)		(35.5	)
Net loan-loss provisions		(16	)		(180	)		163			(91.0	)
Other income		(45	)		(198	)		153			(77.3	)
Profit before taxes		599			646			(47	)		(7.3	)
Tax on profit		(73	)		(119	)		46			(38.4	)
Profit from continuing operations		526			528			(2	)		(0.4	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		526			528			(2	)		(0.4	)
Minority interests		—			—			—			—
Attributable profit to the Group		526			528			(2	)		(0.4	)

* Including dividends, income from equity-accounted method and other operating income/expenses

Retail Banking USA

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		410			404			409			381			346			336			333
Net fees		85			86			83			89			76			84			85
Gains (losses) on financial transactions		52			73			47			39			42			14			(9	)
Other operating income*		81			71			70			64			99			70			72
Gross income		627			635			609			573			564			505			480
Operating expenses		(268	)		(287	)		(293	)		(290	)		(284	)		(290	)		(315	)
General administrative expenses		(238	)		(250	)		(252	)		(252	)		(248	)		(251	)		(271	)
Personnel		(133	)		(135	)		(141	)		(138	)		(140	)		(144	)		(152	)
Other general administrative expenses		(104	)		(115	)		(110	)		(114	)		(109	)		(108	)		(119	)
Depreciation and amortisation		(30	)		(36	)		(42	)		(38	)		(36	)		(38	)		(44	)
Net operating income		359			348			316			283			280			215			165
Net loan-loss provisions		(58	)		(75	)		(47	)		(71	)		(25	)		(3	)		12
Other income		(19	)		(28	)		(151	)		(3	)		(8	)		(9	)		(27	)
Profit before taxes		283			246			118			209			247			202			150
Tax on profit		(49	)		(57	)		(12	)		(16	)		(36	)		(37	)		(0	)
Profit from continuing operations		233			189			106			193			211			165			150
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		233			189			106			193			211			165			150
Minority interests		—			—			—			—			—			—			—
Attributable profit to the Group		233			189			106			193			211			165			150
*  Including dividends, income from equity-accounted method and other operating income/expenses
Other information
Spread		2.82			2.86			2.74			2.68			2.85			2.85			3.09
Loan spreads		2.36			2.45			2.37			2.39			2.51			2.52			2.52
Deposit spreads		0.46			0.41			0.37			0.29			0.34			0.33			0.57

Retail Banking USA

US$ million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		1,337			1,566			(229	)		(14.6	)
Net fees		323			325			(1	)		(0.4	)
Gains (losses) on financial transactions		61			220			(159	)		(72.4	)
Other operating income*		318			284			33			11.8
Gross income		2,039			2,395			(356	)		(14.9	)
Operating expenses		(1,170	)		(1,085	)		(85	)		7.9
General administrative expenses		(1,015	)		(946	)		(69	)		7.2
Personnel		(573	)		(524	)		(49	)		9.4
Other general administrative expenses		(442	)		(422	)		(19	)		4.6
Depreciation and amortisation		(155	)		(138	)		(17	)		12.1
Net operating income		869			1,310			(442	)		(33.7	)
Net loan-loss provisions		(21	)		(230	)		209			(90.8	)
Other income		(59	)		(253	)		194			(76.7	)
Profit before taxes		788			827			(39	)		(4.7	)
Tax on profit		(96	)		(152	)		56			(36.7	)
Profit from continuing operations		692			675			17			2.5
Net profit from discontinued operations		—			—			—			—
Consolidated profit		692			675			17			2.5
Minority interests		—			—			—			—
Attributable profit to the Group		692			675			17			2.5

* Including dividends, income from equity-accounted method and other operating income/expenses

Retail Banking USA

US$ million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		538			517			511			495			457			439			441
Net fees		111			111			103			116			101			110			112
Gains (losses) on financial transactions		68			94			58			51			55			18			(12	)
Other operating income*		106			91			87			83			131			91			95
Gross income		822			813			760			744			744			658			636
Operating expenses		(351	)		(367	)		(366	)		(376	)		(375	)		(378	)		(417	)
General administrative expenses		(311	)		(321	)		(314	)		(327	)		(328	)		(328	)		(359	)
Personnel		(175	)		(173	)		(176	)		(180	)		(184	)		(188	)		(201	)
Other general administrative expenses		(137	)		(148	)		(138	)		(147	)		(144	)		(140	)		(158	)
Depreciation and amortisation		(40	)		(47	)		(52	)		(49	)		(47	)		(50	)		(58	)
Net operating income		471			446			393			368			369			280			220
Net loan-loss provisions		(75	)		(96	)		(58	)		(92	)		(33	)		(4	)		16
Other income		(25	)		(35	)		(193	)		(5	)		(11	)		(12	)		(36	)
Profit before taxes		370			314			143			271			326			263			199
Tax on profit		(65	)		(73	)		(14	)		(21	)		(48	)		(48	)		(0	)
Profit from continuing operations		306			241			129			250			278			215			199
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		306			241			129			250			278			215			199
Minority interests		—			—			—			—			—			—			—
Attributable profit to the Group		306			241			129			250			278			215			199

* Including dividends, income from equity-accounted method and other operating income/expenses

Global Wholesale Banking

EUR million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		1,799			2,014			(215	)		(10.7	)
Net fees		953			1,044			(91	)		(8.7	)
Gains (losses) on financial transactions		966			710			257			36.2
Other operating income*		199			224			(25	)		(11.1	)
Gross income		3,918			3,992			(74	)		(1.9	)
Operating expenses		(1,315	)		(1,337	)		22			(1.6	)
General administrative expenses		(1,178	)		(1,206	)		28			(2.3	)
Personnel		(744	)		(776	)		31			(4.0	)
Other general administrative expenses		(434	)		(431	)		(3	)		0.8
Depreciation and amortisation		(137	)		(131	)		(6	)		4.5
Net operating income		2,603			2,655			(52	)		(2.0	)
Net loan-loss provisions		(792	)		(330	)		(462	)		140.0
Other income		(38	)		(29	)		(10	)		33.7
Profit before taxes		1,773			2,296			(524	)		(22.8	)
Tax on profit		(490	)		(654	)		164			(25.1	)
Profit from continuing operations		1,283			1,642			(359	)		(21.9	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		1,283			1,642			(359	)		(21.9	)
Minority interests		173			153			20			12.8
Attributable profit to the Group		1,110			1,489			(379	)		(25.4	)

* Including dividends, income from equity-accounted method and other operating income/expenses

					Variation
	30.09.13		30.09.12		Amount			%
Business volumes
Total assets		307,357		332,874		(25,517	)		(7.7	)
Customer loans		82,422		98,281		(15,859	)		(16.1	)
Customer deposits		70,198		85,937		(15,738	)		(18.3	)

Global Wholesale Banking

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		665			679			669			695			631			614			554
Net fees		361			352			332			316			338			332			283
Gains (losses) on financial transactions		475			88			146			130			357			169			440
Other operating income*		37			158			29			44			53			104			42
Gross income		1,538			1,277			1,176			1,184			1,379			1,220			1,319
Operating expenses		(447	)		(441	)		(449	)		(427	)		(438	)		(442	)		(435	)
General administrative expenses		(407	)		(398	)		(401	)		(386	)		(392	)		(395	)		(391	)
Personnel		(260	)		(254	)		(261	)		(238	)		(254	)		(248	)		(242	)
Other general administrative expenses		(146	)		(144	)		(140	)		(149	)		(137	)		(148	)		(149	)
Depreciation and amortisation		(41	)		(42	)		(48	)		(41	)		(46	)		(47	)		(43	)
Net operating income		1,091			836			727			757			941			777			884
Net loan-loss provisions		(56	)		(128	)		(147	)		(90	)		(162	)		(154	)		(475	)
Other income		(35	)		(14	)		20			(17	)		(18	)		(12	)		(8	)
Profit before taxes		1,001			695			600			651			761			611			401
Tax on profit		(290	)		(193	)		(171	)		(172	)		(217	)		(168	)		(105	)
Profit from continuing operations		711			502			429			478			544			444			296
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		711			502			429			478			544			444			296
Minority interests		60			50			43			56			63			59			51
Attributable profit to the Group		650			452			387			422			480			385			245
*  Including dividends, income from equity-accounted method and other operating income/expenses
	31.03.12			30.06.12			30.09.12			31.12.12			31.03.13			30.06.13			30.09.13
Business volumes
Total assets		320,957			330,417			332,874			319,094			341,301			309,558			307,357
Customer loans		92,514			100,707			98,281			87,897			94,015			88,854			82,422
Customer deposits		95,977			89,179			85,937			82,023			82,803			78,535			70,198

Asset Management and Insurance

EUR million

							Variation
	9M ’13			9M ’12			Amount			%
Income statement
Net interest income		73			87			(13	)		(15.3	)
Net fees		265			312			(46	)		(14.9	)
Gains (losses) on financial transactions		5			1			4			486.0
Other operating income*		231			254			(23	)		(9.2	)
Gross income		574			653			(79	)		(12.1	)
Operating expenses		(234	)		(232	)		(2	)		0.9
General administrative expenses		(208	)		(205	)		(3	)		1.6
Personnel		(118	)		(122	)		3			(2.9	)
Other general administrative expenses		(90	)		(83	)		(7	)		8.0
Depreciation and amortisation		(26	)		(27	)		1			(4.3	)
Net operating income		340			421			(81	)		(19.3	)
Net loan-loss provisions		0			(2	)		2			—
Other income		(1	)		(13	)		12			(94.8	)
Profit before taxes		340			406			(67	)		(16.5	)
Tax on profit		(77	)		(104	)		27			(25.6	)
Profit from continuing operations		262			303			(40	)		(13.3	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		262			303			(40	)		(13.3	)
Minority interests		16			16			(1	)		(3.6	)
Attributable profit to the Group		247			286			(40	)		(13.9	)

* Including dividends, income from equity-accounted method and other operating income/expenses

					Variation
	30.09.13		30.09.12		Amount			%
Business volumes
Total assets		26,762		26,873		(112	)		(0.4	)
Customer loans		346		427		(81	)		(19.0	)
Customer deposits		8,481		6,154		2,327			37.8

Asset Management and Insurance

EUR million

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Income statement
Net interest income		30			29			28			32			26			24			22
Net fees		96			114			102			106			87			91			87
Gains (losses) on financial transactions		1			(1	)		1			2			2			1			1
Other operating income*		98			91			65			101			84			78			69
Gross income		225			233			195			241			199			195			180
Operating expenses		(76	)		(78	)		(78	)		(75	)		(77	)		(78	)		(79	)
General administrative expenses		(67	)		(68	)		(69	)		(66	)		(68	)		(70	)		(71	)
Personnel		(40	)		(40	)		(42	)		(38	)		(40	)		(40	)		(38	)
Other general administrative expenses		(28	)		(28	)		(27	)		(28	)		(28	)		(30	)		(33	)
Depreciation and amortisation		(9	)		(9	)		(9	)		(9	)		(9	)		(9	)		(8	)
Net operating income		148			156			117			166			122			117			101
Net loan-loss provisions		(0	)		(2	)		(0	)		0			0			0			0
Other income		(5	)		(10	)		2			3			(0	)		0			(0	)
Profit before taxes		143			144			120			169			122			117			101
Tax on profit		(40	)		(36	)		(28	)		(50	)		(27	)		(28	)		(23	)
Profit from continuing operations		103			108			92			119			95			89			78
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		103			108			92			119			95			89			78
Minority interests		9			3			4			3			5			5			6
Attributable profit to the Group		94			104			87			116			90			85			72
*  Including dividends, income from equity-accounted method and other operating income/expenses
	31.03.12			30.06.12			30.09.12			31.12.12			31.03.13			30.06.13			30.09.13
Business volumes
Total assets		26,518			26,143			26,873			26,798			27,616			26,380			26,762
Customer loans		431			409			427			286			304			306			346
Customer deposits		6,091			6,239			6,154			7,196			7,895			8,295			8,481

NPL ratios

%

	31.03.12		30.06.12		30.09.12		31.12.12		31.03.13		30.06.13		30.09.13
Continental Europe		5.41		5.67		6.07		6.29		6.62		7.83		8.48
Spain		3.35		3.26		3.64		3.84		4.12		5.75		6.40
Portugal		4.59		5.42		6.16		6.56		6.88		7.41		7.86
Poland		4.74		4.93		4.69		4.72		7.39		8.08		7.75
Santander Consumer Finance		4.05		3.88		3.96		3.90		3.98		4.04		3.96
United Kingdom		1.82		1.83		1.94		2.05		2.03		2.01		1.98
Latin America		4.67		5.14		5.31		5.42		5.44		5.26		5.32
Brazil		5.76		6.51		6.79		6.86		6.90		6.49		6.12
Mexico*		1.61		1.64		1.69		1.94		1.92		2.20		3.58
Chile		4.52		4.65		5.00		5.17		5.51		5.81		6.00
USA		2.46		2.27		2.31		2.29		2.23		2.22		2.26
Operating Areas		3.95		4.09		4.33		4.53		4.71		5.16		5.42
Total Group		3.98		4.11		4.34		4.54		4.76		5.18		5.43

(*).- Increase in the quarter fully due to the entry of homebuilders

NPL coverage ratios

%

	31.03.12		30.06.12		30.09.12		31.12.12		31.03.13		30.06.13		30.09.13
Continental Europe		54.1		58.9		68.4		73.0		71.0		63.3		61.1
Spain		49.4		43.6		45.7		50.0		50.3		43.1		45.0
Portugal		57.6		53.4		51.7		53.1		52.9		52.4		51.9
Poland		66.3		62.1		64.0		68.3		67.6		59.3		64.1
Santander Consumer Finance		108.3		110.7		109.7		109.5		108.7		106.9		109.2
United Kingdom		37.5		37.5		44.8		44.1		42.1		42.1		41.6
Latin America		91.6		89.5		89.8		87.5		86.7		85.4		82.9
Brazil		90.0		90.1		92.0		90.2		90.4		91.3		92.0
Mexico*		194.9		183.4		175.4		157.3		157.1		142.7		99.0
Chile		68.3		64.0		60.8		57.7		53.9		49.9		49.7
USA		107.4		113.3		109.7		105.9		102.8		102.8		96.6
Operating Areas		62.1		64.8		71.3		73.3		71.8		66.3		64.0
Total Group		61.2		64.3		69.5		72.4		70.9		66.4		63.9

(*).- Decrease in the quarter fully due to the entry of homebuilders

Spreads on loans and deposits

%

	1Q 12			2Q 12			3Q 12			4Q 12			1Q 13			2Q 13			3Q 13
Retail Banking Spain
Loan spreads		1.60			1.59			1.64			1.81			2.21			2.26			2.33
Deposit spreads		1.64			1.68			1.44			0.81			0.16			0.28			0.15
TOTAL		3.24			3.27			3.08			2.62			2.37			2.54			2.48
Retail Banking Portugal
Loan spreads		2.34			2.39			2.47			2.47			2.44			2.44			2.44
Deposit spreads		(0.91	)		(0.96	)		(1.13	)		(1.24	)		(1.22	)		(1.18	)		(1.06	)
TOTAL		1.43			1.43			1.34			1.23			1.22			1.26			1.38
Retail Banking Poland
Loan spreads		3.29			3.33			3.41			3.48			2.41			2.45			2.43
Deposit spreads		1.27			1.26			1.16			0.96			0.73			0.72			0.73
TOTAL		4.56			4.59			4.57			4.44			3.14			3.17			3.16
Santander Consumer Finance
Loan spreads		4.51			4.57			4.67			4.73			4.76			4.83			4.93
Retail Banking United Kingdom
Loan spreads		2.49			2.54			2.60			2.66			2.78			2.80			2.85
Deposit spreads		(1.02	)		(1.18	)		(1.26	)		(1.27	)		(1.25	)		(1.17	)		(1.00	)
TOTAL		1.47			1.36			1.34			1.39			1.53			1.63			1.85
Retail Banking Brazil
Loan spreads		14.44			14.84			14.25			13.41			13.09			12.51			11.93
Deposit spreads		0.73			0.65			0.56			0.51			0.72			0.75			0.84
TOTAL		15.17			15.49			14.81			13.92			13.81			13.26			12.77
Retail Banking Mexico
Loan spreads		8.20			8.35			8.33			8.49			8.46			8.41			8.34
Deposit spreads		1.96			1.92			1.93			2.00			1.86			1.64			1.56
TOTAL		10.16			10.27			10.26			10.49			10.32			10.05			9.90
Retail Banking Chile
Loan spreads		4.56			4.62			4.48			4.36			4.31			4.27			4.01
Deposit spreads		2.45			2.36			2.36			2.25			2.39			2.47			2.42
TOTAL		7.01			6.98			6.84			6.61			6.70			6.74			6.43
Retail Banking USA
Loan spreads		2.36			2.45			2.37			2.39			2.51			2.52			2.52
Deposit spreads		0.46			0.41			0.37			0.29			0.34			0.33			0.57
TOTAL		2.82			2.86			2.74			2.68			2.85			2.85			3.09

Risk-weighted assets

EUR million

	31.03.12		30.06.12		30.09.12		31.12.12		31.03.13		30.06.13		30.09.13
Continental Europe		227,304		223,405		223,390		216,756		218,839		202,113		191,251
Spain		127,500		125,338		125,435		121,941		120,003		105,948		96,976
Portugal		19,960		18,753		18,694		17,753		17,273		17,043		15,761
Poland		8,579		8,893		8,795		9,799		16,411		15,937		16,037
Santander Consumer Finance		47,232		47,309		47,443		47,411		47,507		47,386		46,839
Spain’s run-off real estate		17,035		15,409		14,882		13,198		12,292		12,093		11,636
United Kingdom		93,128		94,828		96,805		94,555		91,476		90,581		90,542
Latin America		167,538		165,215		165,386		169,215		176,601		152,459		144,581
Brazil		101,875		99,107		99,038		103,151		106,425		83,265		78,426
Mexico		20,460		22,108		22,172		21,866		23,653		23,698		22,485
Chile		23,746		25,292		25,810		25,904		27,956		26,788		25,893
USA		48,151		50,095		49,313		49,668		51,153		49,263		49,010
Operating Areas		536,121		533,543		534,894		530,194		538,069		494,416		475,385
Corporate Activities		34,118		27,981		27,391		26,836		30,086		28,856		26,912
Total Group		570,239		561,524		562,285		557,030		568,155		523,272		502,297

ACTIVITY AND RESULTS January - September 2013

1 24 October 2013

Important information Banco Santander, S.A. (“Santander”) cautions that this presentation contains forward-looking statements. 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. 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. These factors include, but are not limited to: (1) general market, macroeconomic, governmental and regulatory trends; (2) movements in local and international securities markets, currency exchange rates and interest rates; (3) competitive pressures; (4) technological developments; and (5) changes in the financial position or credit worthiness of our customers, obligors and counterparties. The risk factors that we have indicated in our past and future filings and reports, including those with the Securities and Exchange Commission of the United States of America (the “SEC”) could adversely affect our business and financial performance. 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 on which they are made and are based on the knowledge, information available and views taken on the date on which they are made; 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. 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 the 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 there from. 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. Note: 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 year. Nothing in this presentation should be construed as a profit forecast. 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 my differ materially from those of such subsidiaries.

Agenda ? Group performance — 3Q13 highlights — Results ? Performance by business area ? Priorities for the coming quarters ? Appendix

3Q13 Highlights BALANCE SHEET VOLUMES reflect Loans: -2% Deposits: +5% environment and strategy Good LIQUIDITY position LTD: 108% Strong CAPITAL generation Core capital: 11.56%; +45 b.p. in 3Q INCOME STATEMENT Sharp profit growth Attrib. profit 9M’13: € 3,310 million due to lower provisions (+77% / 9M’12) Profit increased over 2Q’13, Revenues: -0.4% Provisions: -9.4% excluding exchange rate impact Attributable profit: +8.5% Note: Loans and deposits. Year-on-year change excluding exchange rate impact and repos

Better macroeconomic outlook in next quarters 2012 1H’13 2014 IMF Spain -1.6 -1.8 0.2 Portugal -3.2 -3.1 0.8 Germany 0.9 0.5 1.4 UK 0.2 0.8 1.9 USA 2.8 1.4 2.6 Brazil 0.9 2.6 2.5 Mexico 3.6 1.2 3.0 Chile 5.6 4.5 4.5 Argentina 1.9 3.5 2.8 Poland 1.9 0.8 2.4 (1) GDP growth rate change between 2014 and 2013 in Grupo Santander footprint (9M’13 ordinary attributable profit). (2) Weighted average year-on-year growth of the 10 core countries in each period. IMF 2014 GDP estimates (WEO October 2013)

Group loans and deposits1 Var. Sep’13 / Sep’12 n Mature markets still undergoing deleveraging n More balanced growth in emerging markets (1) Year-on-year change excluding exchange rate impact and repos (2) Excluding Kredit Bank (Poland) perimeter effect: +7% in loans and +7% in deposits

Very comfortable liquidity position Reduction of commercial gap1 -EUR 32 bn. Sharp liquidity generation -EUR 30 bn. from businesses With no necessity to issue debt FY 2012 9M’13 Net loan-to-deposit ratio2 150% 113% 108% LTD at very comfortable levels Dec’08 Dec’12 Sep’13 (1) Difference net loans/deposits (including retail commercial paper). (2) Including retail commercial paper.

8 Strong capital generation: +123 b.p. year-to-date BIS II core capital ratio Leverage ratio1 (according to IMF criteria) 3 (1) Shareholders equity / total assets Dec’12 Mar’13 Jun’13 Sep’13 6.41% 6.41% 6.80% 7.00% Dec’11 Dec’12 Mar’13 Jun’13 Sep’13 10.02% 10.33% 10.67% 11.11% 11.56% +45 b.p. in the quarter

9 Sharp year-on-year profit growth due to lower provisions 4 Group quarterly attributable profit EUR million 3Q’12 4Q 1Q’13 2Q 3Q 122 423 1,205 1,050 1,055 Group attributable profit EUR million 9M’12 9M’13* 1,872 3,310 +77% +8% excl. exchange rate (*) Not including capital gains of EUR 700 mill. from Santander Asset Management strategic agreement

10 EUR million (*) Excluding perimeter and exchange rate differences (**) Excluding exchange rate impact Grupo Santander Results Note: in 9M’13: EUR 270 million in capital gains and EUR 270 million in provisions. In 9M12: EUR 1,029 million in capital gains and EUR 3,475 million in provisions Good quarterly performance (excluding exchange rate impact). Profit growth due to stable gross income and lower provisions 9M’13 Var. / 9M’12 3Q’13 Var. / 2Q’13 % %* % %** Gross income 30,348 -8.4 -2,9 9,738 -5.6 -0.4 Operating expenses -14,858 -1.2 3.3 -4,862 -2.8 1.5 Net operating income 15,490 -14.3 -8.0 4,876 -8.4 -2.2 Loan-loss provisions -8,583 -9.7 -3.7 -2,600 -15.2 -9.4 Profit before tax 5,482 -21.3 -14.1 1,766 3.1 11.1 Attributable profit 3,310 76.9 110.4 1,055 0.5 8.5

11 Gross income Gross income structure Group gross income 4 EUR million Constant EUR million 65% 24% 9% 2% Net interest income Fee income Trading gains Other revenues Stable gross income excluding FX impact, with some seasonal effect in 3Q 1Q’12 2Q 3Q 4Q 1Q’13 2Q 3Q 11,287 11,123 10,713 10,283 10,290 10,320 9,738 10,490 10,583 10,112 10,009 10,056 10,166 10,125

12 1Q’12 2Q 3Q 4Q 1Q’13 2Q 3Q 5,043 4,934 5,067 4,939 4,996 5,000 4,862 Above-average efficiency with potential for improvement (1) Operating expenses / Gross income “Peer Group”: Banco Itaú, BBVA, BNP Paribas, Credit Suisse, HSBC, ING Group, Intesa Sanpaolo, JP Morgan, Mitsubishi, Nordea, Royal Bank of Canada, Societe Generale, UBS, Unicredito and Wells Fargo. Santander Group Peers average European peers average 48.5 60.0 60.8 Group operating expenses 4 Flat costs with different performance by unit 4,750 4,736 4,821 4,809 4,908 4,937 5,013 EUR million Constant EUR million Operating expenses Efficiency ratio1 vs peers (%) 1H’13 data

13 Integrations progressing ahead of schedule 4 Branch rebranding started. Expected to be completed in 1Q’14. Branch concentration plan accelerated: 450 branches scheduled for 2013. Technological integration: migration started in September (in four regions). Synergies: exceeding initial estimates Rebranding of KB to BZ WBK completed. Transition to Santander brand to begin in Nov’13. Branch and headcount streamlining is ahead of target. IT unification completed: launching of shared products started. Synergies: exceeding initial estimates Spain Poland Accumulated synergies: current vs. initial Accumulated synergies: current vs. initial 2013 2014 2015 61 295 420 ca. 90 > 300 > 435 2013 2014 2015 166 208 322 ca. 175 ca. 220 ca. 340 EUR million (before tax) PLZ million (before tax)

14 High coverage ratio thanks to effort made in 2012 Group NPL ratio trend continues due to Spain. Stable or declining NPL ratios in two-thirds of Group Coverage ratio (%) NPL ratio (%) (1) Including reclassification of substandard loans in Spain 61 64 70 72 71 66 64 3.98 4.11 4.34 4.54 4.76 5.18 5.43 Mar’12 Jun’12 Sep’12 Dec’12 Mar’13 Jun’13 Sep’13 (1) Credit quality. Group NPL and coverage ratios 4

15 UK Brazil (1) % over operating areas (2) Including reclassification of substandard loans. Credit quality. NPL ratio by unit (%) 4 Stable in both retail and corporate NPL ratio trend continues to improve as announced Net loans to customers1 1.94 2.05 2.03 2.01 1.98 S’12 D’12 M’13 J’13 S’13 6.79 6.86 6.90 6.49 6.12 S’12 D’12 M’13 J’13 S’13 Spain Higher NPLs due to companies and reduction in loan portfolio 3.64 3.84 4.12 5.75 6.40 S’12 D’12 M’13 J’13(2) S’13 Spain 24% Portugal 4% Poland 2% Germany 4% Run-off real estate 1% Other Europe 5% UK 35% USA 6% Brazil 10% Mexico 3% Chile 4% Other LatAm 2%

16 Group provisions 4 Note: Cost of credit = 12 month net loan-loss provisions / average lending, calculated in current euros Cost of credit (%) Lower cost of credit after the effort made in 2012 Lower provisions in 3Q mainly due to Brazil 1Q’12 2Q 3Q 4Q 1Q’13 2Q 3Q 3,118 3,401 2,987 3,134 2,919 3,065 2,600 2,780 2,230 1,130 2,862 3,202 2,824 3,063 2,836 3,016 2,732 Provisions 1.51 1.91 2.20 2.38 2.38 2.05 1.77 1Q’12 2Q 3Q 4Q 1Q’13 2Q 3Q Net loan-loss provisions Net loan-loss provisions (Constant EUR million) Real estate provisions in Spain EUR million

17 ? Group performance — 3Q13 Highlights — Results ? Performance by business area ? Priorities for the coming quarters ? Appendix Agenda

18 Business areas High diversification by country in profit generation Poland 6% Brazil 24% Mexico 11% Chile 6% Other LatAm 8% USA 11% United Kingdom 15% Germany 6% Portugal 1% Spain 7% Other Europe 5% Ordinary attributable profit in 9M’13(1) (1) Over operating areas ordinary attributable profit excluding run-off real estate in Spain

Spain* Activity Volumes1 Cost of new term deposits Var. Sep’13 / Sep’12 P&L EUR million 3Q’13 %2Q’13 9M’13 %9M’12 Gross income 1,755 -2% 5,364 -9% Expenses -950 0% -2,863 -1% LLP -630 -9% -1,835 -1% Attributable profit 73 -15% 367 -51% n Market share gain year-to-date in deposits and mutual funds. Sharp reduction in new term deposit costs. n In 3Q, gross income impacted by lower volumes, mortgage repricing and some trade-off in NII / trading gains in wholesale business. n Provisions in line with cost of credit target. (*) Including former retail networks of Santander, Banesto and Banif, Global Banking&Markets Spain, Santander AM Spain, Insurance Spain and ALCO in Spain. Excluding SCF Spain and Spain’s run-off real estate. (1) Excluding repos. Deposits include retail commercial paper.

Spain Gross loans EUR billion [Graphic Appears Here] n Greater stability in retail in 3Q’13. n Company lending reflect deleveraging and greater access to markets. n Actions to boost investment: Plan 10.000, EIB and ICO. n LTD of 85% enabled greater focus on profitability. In 3Q’13: – exit expensive institutional deposits – transfer balances to mutual funds n Retail deposits stable in 3Q (+0.2% / 2Q) with sharp increase y-o-y (+22%).

21 Spain. NPL ratio and entries (1) Gross NPL entries by date (before recoveries), based on > 90 days of arrears. (2) Including reclassification of substandard operations. n NPL ratio impacted by deleveraging and companies. n Stable credit quality in mortgages. Base 100: 2008 NPL and coverage ratios (%) NPL entries1 > 90 days 100 123 142 170 179 194 100 102 74 83 78 68 100 97 53 44 42 31 2008 2009 2010 2011 2012 9M13 Companies w/o real estate purpose Mortgages to individuals Individuals Cards + Consumer loans (2) 3.64 3.84 4.12 5.75 6.40 Sep’12 Dec’12 Mar’13 Jun’13 Sep’13 46 50 50 43 45 Coverage ratio NPL ratio

22 3.10% 2.56% 2.51% 2.27% 1.84% 3Q’12 4Q’12 1Q’13 2Q’13 3Q’13 Activity Portugal n Market share gain and higher profit (+28%) in the quarter. n Gross income stabilising. Improved deposits costs not yet reflected. n Maintained strict cost control (-3% y-o-y). n Reduction in provisions due to lower NPL entries. Loans Deposits -7% -3% Var. Sep’13 / Sep’12 Volumes1 Cost of new term deposits EUR million 3Q’13 %2Q’13 9M’13 %9M’12 Gross income 228 -2% 693 -18% Expenses -123 +1% -369 -3% LLP -56 -11% -182 -45% Attributable profit 32 +28% 77 -19% P&L (1) Excluding repos -2% / 2Q’13 -2% / 2Q’13

23 Activity Poland Constant EUR million 3Q’13 %2Q’13 9M’13 %9M’12 %9M’12* Gross income 350 +3% 1,004 +44% +3% Expenses -140 -3% -440 +39% -8% LLP -36 -30% -128 +61% +21% Net profit 137 +12% 350 +44% +13% Attrib. profit 101 +11% 261 +11%—P&L Loans Deposits +76% +62% n Integration ahead of schedule: increased productivity and reduced costs. n Volumes reflect exit of Kredit Bank expensive deposits and growth in mutual funds (+23% /Sep’12). n Profit growth due to ongoing quarterly improvement in gross income, costs and provisions. Var. Sep’13 / Sep’12 Volumes1 Stock deposit cost2 3.19% 3.19% 3.07% 2.51% 1.81% 3Q’12 4Q’12 1Q’13 2Q’13 3Q’13 +3% -3% (*) Perimeter on a like-for-like basis based local criteria Excluding perimeter (1) Local currency. Excluding repos (2) Including change in perimeter

24 Activity Santander Consumer Finance – Continental Europe n Market share gain1 in a still weak environment for consumer business. n Profit rose for the third straight quarter backed by spread management and good credit quality. n Self-funding business EUR million 3Q’13 %2Q’13 9M’13 %9M’12 Gross income 801 +3% 2,352 -1% Expenses -345 +1% -1,038 +2% LLP -158 +21% -460 -16% Attributable profit* 208 +4% 585 +4% P&L 3T’12 4T’12 1T’13 2T’13 3T’13 2.3% 2.1% 2.3% 2.5% 2.4% NII – Provisions / ATAs Prov. NII 3.24% 3.19% 3.26% 3.24% 3.28% 0.95% 1.08% 0.95% 0.73% 0.87% Gross loans: EUR 58 bn. % / total 53 15 11 10 5 6 Germany Nordic countries Poland Other Italy Spain (1) New car registrations in the footprint. * Not including Santander Consumer UK profit, as it is recorded in Santander UK results. If included, 9M13 attributable proft: EUR 664 million (+4% y-o-y) 9M’13 / 9M’12 new lending: -1% SCF vs. -6% sector1

25 Total Balance Sheet assets Spain’s run-off real estate1 n Total real estate exposure dropped 26% in the last twelve months. n Coverage ratios remain above 50%. n 9M’13 attributable profit: -EUR 493 million (-156 million in 3Q). Coverage ratios (1) Including foreclosed real estate and equity stakes (Metrovacesa and Sareb) Sep’12 Dec’12 Mar’13 Jun’13 Sep’13 10.6 7.3 6.8 6.5 6.2 4.2 3.7 3.7 3.6 3.7 15.5 12.3 11.9 11.6 11.4 EUR billion Net foreclosures Net loans Equity stakes Loans Foreclosures 51% 54% Buildings: 41% Land: 62%

26 United Kingdom n Improved commercial activity, customer relationship and service quality. n Gradual improvement in net interest income (3Q’13 benefit of maturing expensive deposits). n Cost control maintained alongside good credit quality. n Profit growth continued over 2Q’13 (+11%) and year-on-year (+17%). Loans Deposits -5% -2% Var. Sep’13 / Sep’12 Volumes1 Banking NIM Sterling million 1.27% 1.27% 1.45% 1.46% 1.59% 3Q’12 4Q’12 1Q’13 2Q’13 3Q’13 SMEs: +11% C/A: +71% 3Q’13 %2Q’13 9M’13 %9M’12 Gross income 1,022 -2% 3,044 0% Expenses -538 -5% -1,665 +1% LLP -132 +29% -371 -25% Profit cont. op. 261 +11% 687 +17% Attributable profit 261 +17% 675 -3% Activity P&L (1) Local currency. Excluding repos

United Kingdom 27 Boosting retail customers… Dec’10 Sep’12 Sep’13 12.3 14.4 24.6 £ billion Current accounts 1?2?3 +71% Dec’10 Sep’12 Sep’13 1.0 2.2 Million 1|2|3 World Customers … and corporate customers Dec’10 Sep’12 Sep’13 7% 10% 11% Corporate loans / Total loans Dec’10 Sep’12 Sep’13 14.6 19.3 21.5 Corporate loans +11% n Additional 900,000 1|2|3 World customers year to date. n 86% primary banking customers with the 1|2|3 Current Account. n New products: affluent (‘Select’) and mortgages (‘Freedom’, Help to Buy participation). n Improved quality of assets and liabilities mix. n +70 b.p. SMEs market share in 12 months. n New initiatives: rollout of additional products and processes; larger corporates. £ billion n.a.

28 Loans Deposits +7% +8% P&L Brazil 3Q’13 %2Q’13 9M’13 %9M’12 Gross income 3,431 -1% 10,482 -7% Expenses -1,381 +5% -3,995 +3% LLP -1,182 -11% -3,908 -6% Attributable profit 396 -3% 1,277 -13% +2% / 2Q’13 +1% / 2Q’13 Var. Sep’13 / Sep’12 Volumes1 Constant EUR million Activity 3T’12 4T’12 1T’13 2T’13 3T’13 4.4% 4.0% 3.5% 3.5% 3.5% NII – Provisions / ATAs Prov. NII 8.27% 7.67% 7.29% 7.10% 6.56% 3.92% 3.71% 3.83% 3.59% 3.11% n Good commercial dynamics: loans above private sector banks; faster growth in deposits. n Gross income still impacted by lower spreads on loans and change of mix. n Costs below inflation (in 3Q, collective agreement and contracts/rentals review). n Sharp reduction of NPL ratio and loan-loss provisions in 3Q. (1) Local currency. Excluding repos. Deposits include letras financieras.

29 1Q’12 2Q’12 3Q’12 4Q’12 1Q’13 2Q’13 3Q’13 1,242 1,554 1,374 1,343 1,395 1,331 1,182 6.1% 6.6% 6.9% 7.4% 7.5% 7.1% 6.7% Brazil 5.76 6.51 6.79 6.86 6.90 6.49 6.12 M’12 J’12 S’12 D’12 M’13 J’13 S’13 Net interest income impacted by lower spreads and change of mix towards lower risk products Further reduction in cost of credit, with provisions at two-year low Net loan-loss provisions Cost of credit 12.0 12.3 11.8 11.2 11.1 10.5 9.9 1Q’12 2Q’12 3Q’12 4Q’12 1Q’13 2Q’13 3Q’13 Mortgages Other1 individuals SMEs / Companies Large companies Total +7% +0% +0.3% +7% +2% (1) Other = Consumer, payrolls, automobile, cards, cheque and personal loans (2) Cost of credit = 12 months net loan-loss provisions / average lending Gross income Credit quality Constant EUR million Lending portfolio LLP and cost of credit2 Var. Sep’13 / Jun’13 Loan spreads (%) NPL ratio (%)

30 Mexico n Despite slower-than-expected economic growth, Santander achieved growth in volumes and market share gains (SMEs, mortgages, insurance and demand deposits). n Gross income rose 11% y-o-y with a good 3Q in NII (+4%) and fee income (9%). n In 3Q costs rose due to branch openings and regulation change (ESPS). n Provisions impacted by homebuilders and methodology change to expected losses. Loans Deposits +9% +9% Var. Sep’13 / Sep’12 Volumes1 Constant EUR million Activity P&L NII / ATAs +3% / 2Q’13 -3% / 2Q’13 4.14% 4.19% 4.08% 3.85% 4.37% 3Q’12 4Q’12 1Q’13 2Q’13 3Q’13 3Q’13 %2Q’13 9M’13 %9M’12 Gross income 775 -1% 2,330 +11% Expenses -317 +6% -918 +13% LLP -261 +45% -583 +86% Net profit 170 -34% 742 -12% Attributable profit2 129 -34% 564 -33% (1) Local currency. Excluding repos. (2) Higher minority interests year-on-year after IPO. (3) ESPS: Employee statutory profit sharing

31 Chile n Volumes growing faster in 3Q due to companies, affluent clients and “core deposits”. n Higher gross income due to UF portfolios (higher inflation) and lower cost of funds. n One-off rise in provisions in the quarter. Stable risk premium. Return 3Q’13 %2Q’13 9M’13 %9M’12 Gross income 600 +8% 1,692 +2% Expenses -244 0% -716 +6% LLP -160 +10% -456 +12% Attributable profit 120 +26% 316 -9% Volumes1 (1) Local currency. Excluding repos. Constant EUR million Activity P&L 4.2% 4.1% 3.8% 4.5% 3.9% 3.9% 4.4% 1.1% 0.4% -0.2% 1.1% 0.1% -0.1% 1.0% 1Q’12 2Q 3Q 4Q 1Q’13 2Q 3Q Loans Deposits +10% +5% Var. Sep’13 / Sep’12 UF rate NII SAN +2% / 2Q’13 +4% / 2Q’13

32 Other Latin American countries Argentina Constant EUR million Attributable profit 9M’12 9M’13 194 254 Puerto Rico Uruguay Peru 9M’12 9M’13 38 64 9M’12 9M’13 36 42 9M’12 9M’13 11 14 n Focus on linkage, transactional business and target segments. n Volumes and profit growing at double-digit rates for the whole region. n Results underpinned by net interest income and fee income.

33 Activity USA n Essential steps taken in business model development (brand and reorganisation). n Gross income affected by spread narrowing and investment portfolio reductions. n Costs including franchise development expenses (e.g. rebranding). n Sharp reduction in provisions due to lower volumes and improved credit quality. Loans Deposits -5% -2% Var. Sep’13 / Sep’12 Gross loans New loans +34% +137% Santander Bank1 SCUSA2 Corporate: +2% Retail: +2% Var. Sep’13 / Sep’12 P&L 3Q’13 %2Q’13 9M’13 %9M’12 Gross income 674 -6% 2,193 -14% Expenses -434 +11% -1,216 +8% LLP 17 n.s. -25 -90% Attributable profit 217 -12% 772 +4% nSantander Bank 120 -18% 427 +4% nSCUSA 97 -5% 346 +4% US$ million (1) Local currency. Excluding repos. (2)Excluding contribution from Chrysler agreement: gross outstanding loans +13%; new lending +45%

Corporate Activities EUR million 9M’13 9M’12 Gross income -638 -789 Expenses -526 -476 Provisions, tax and minority interests -327 -240 Ordinary attributable profit -1,491 -1,505 n Losses similar to those of previous year: —Higher funding cost, partially affected by liquidity buffer. —Increased trading gains due to active management of balance sheet structural risk. —Larger provisions due to charge for unifying Spanish units lending criteria.

In the third quarter 2013 Balance Growing volumes and customers adjusting to each market sheet High capacity to generate capital Capital and No restrictions (Core cap.: +123 b.p. YTD) and liquidity liquidity to grow (LTD: 108%) REVENUES: Group stabilising, with 7 core markets growing basic2 revenues in recent quarters P&L1 COSTS: Group increasing below inflation, with leeway for improvement PROVISIONS: Cost of credit improved at Group level, with 8 markets declining / stable Laying the foundations for growth (1) At constant exchange rates (2) Net interest income plus net fee income

Agenda ? Group performance — 3Q13 highlights — Results ? Performance by business area ? Priorities for the coming quarters ? Appendix

Global management priorities Efficient capital reallocation among markets and segments. Improve capital return – Depending on profitability / growth potential. – Maintaining presence in core markets. Improve cost Redesigning the bank to do the same with lower costs. efficiency – 2016 target: savings of EUR 1,500 million*. Revenues: opportunities in global business units; sharing best Increase practices. Group Costs: Global management. integration Provisions: Recoveries and Asset Restructuring Division (*) Including EUR 500 million already announced as merger synergies in Spain and Poland.

Management priorities by business area (I) Our priorities in core markets lead to improvements in the coming quarters Gain market share in companies, SMEs and affluent clients. Spain and Portugal Merger synergies + optimisation measures. Reduced deposits costs and cost of credit. Improve segmentation, linkage and service quality. United Kingdom Growth in target segments (corporates, SMEs, affluent clients). Lower funding costs. Boost commercial franchise: increase in customers / loyalty. SMEs (agro, BNDES) Brazil Improve efficiency: costs below inflation. affluent Manage net interest income adjusted to risk. Continue the favourable trend in NPLs and cost of credit. Selective market share gains: organic + inorganic (e.g. FECI*). SCF Maintain credit quality above peer-average. Self-funding. (*): Strategic agreement with El Corte Inglés to acquire 51% of its financing companies (FECI), Spain’s largest.

Management priorities by business area (II) Efficient investment in retail network. Mexico Volume and revenue growth, backed by macroeconomic recovery. Target products and segments: SMEs, affluent (mortgages, insurance & demand Gain market share: SMEs / companies and new model in affluent segment. Chile Investment in growth, maintaining efficiency leadership. Maintain strong growth, based on economics and low banking penetration. Other Latam Target mid-corp and affluent clients in all countries. Complete franchise (C&I, GBM, transactional business, affluent clients, …). USA Boost niche businesses: e.g. auto-loans. Reduce funding cost. Improve service quality to customers (rebranding). Complete merger and bring forward synergies. Poland Increase Kredit Bank’s productivity and profitability to BZ WBK’s level. Measures aim to normalise profit and raise profitability

40 ? Group performance — 3Q13 Highlights — Results ? Performance by business area ? Priorities for the coming quarters ? Appendix Agenda

41 Group balance sheet Appendix Liquidity and funding Secondary segment results NPL, coverage ratios and cost of credit Spreads Quarterly income statement

42 Group balance sheet

Highlights of the Group balance sheet 43 Retail balance sheet, appropriate for a low risk business model, liquid and well capitalised Balance sheet at September 2013 EUR billion Lending: 58% of balance sheet Derivatives (with counterparty on the liabilities side): 7% of balance sheet Cash, central banks and credit institutions: 17% Other (goodwill, fixed assets, accruals): 8% Available for sale portfolio (AFS): 6% Trading portfolio: 4% 1 3 2 4 5 6 (*) Other assets: Goodwill EUR 24 bn., tangible and intangible assets EUR 17 bn., other capital instruments at fair value EUR 1 bn., accruals and other accounts EUR 54 bn. (**) Including retail commercial paper Assets Liabilities 687 98 96 192 49 638 75 88 32 101 197 131 1,192 1,192 1 6 5 4 3 2 Loans to customers Derivatives Cash and credit institutions Other* AFS portfolio Customer Deposits** Issues and subordinated liabilities Shareholders’ equity & fixed liabilities Credit institutions Other Derivatives Trading portfolio

44 Liquidity and funding

45 Well-funded balance sheet with a high structural liquidity surplus Liquidity and funding Note: Liquidity balance sheet for management purposes (netting of trading derivatives, provisional interbank balances and fixed assets). (*) Including retail commercial paper. (**) Including bonds placed in the market and guaranteed financing (structured, FHLB lines, …) and other special financing (1) Difference loans – deposits (including retail commercial paper) (2) Financial assets – short term wholesale funding markets Net loans to customers Deposits* M/L term funding Financial assets Equity and other ST Funding Securitisations** Santander Group liquidity balance sheet September 2013 Structural liquidity2 surplus: EUR 165 billion (+EUR 8 bn. / Dec’12) Commercial1 Gap: EUR 49 bill. (-EUR 32 bn. / Dec’12) Assets Liabilities 182 17 79 105 687 135 53 638 Fixed assets & other

46 The effort made in recent years is reflected in enhanced monitoring metrics Liquidity and funding (*) Balance sheet for liquidity management purposes (net of trading derivatives and interbank balances) Note: in 2011, 2012 and 2013 customer deposits included retail commercial paper in Spain and excluding short-term wholesale funding). 2008 2009 2010 2011 2012 Sep’13 Net loans over net assets* 79% 79% 75% 77% 74% 72% Net loan-to-deposit ratio (LTD) 150% 135% 117% 117% 113% 108% Customer deposits and medium- to long-term financing over net loans 104% 106% 115% 113% 118% 120% Short term wholesale funding over net* liabilities 7% 5% 3% 2% 2% 2% Structural liquidity surplus (% over net* liabilities) 4% 8% 14% 13% 16% 17% Monitoring metrics. Santander Group

47 Adequate liquidity structure of stand-alone units Liquidity and funding September 2013 Main units and liquidity ratios Note: In Spain, retail commercial paper included in deposits LTD ratio Deposits + M/L term funding / (net loans / deposits) net loans Spain 85% 162% Portugal 102% 107% Santander Consumer Finance 182% 69% Poland 94% 109% UK 120% 112% Brazil 105% 125% Mexico 81% 130% Chile 135% 97% Argentina 87% 115% USA 106% 116% Total Group 108% 120%

48 Liquidity generation by businesses enabled Santander to reduce recourse to wholesale funding Liquidity and funding September 2013 Sterling area, 24% Euro area, 45% US$ area, 31% M/L term issuance Securitisations1 Total (1) Placed in the market and including structured finance 9M’12 9M’13 11 5 24 16 35 21 Issuance (EUR bn.) Diversification- 9M’13

49 Secondary segment results

Retail Banking 50 Activity1 EUR million 3Q’13 %2Q’13 9M’13 %9M’12 Gross income 8,415 -7% 26,488 -9% Expenses -4,137 -3% -12,653 -2% LLP -2,072 -22% -7,359 -17% Attributable profit 1,316 +4% 3,937 -14% P&L EUR billion EUR million 1Q’12 2Q 3Q 4Q 1Q’13 2Q 3Q 9,826 9,783 9,640 9,077 9,018 9,055 8,415 Gross income Loans Deposits (1) Excluding repos. Deposits including retail commercial paper in Spain and “letras financieras” in Brazil Sep’12 Sep’13 644 606 Sep’12 Sep’13 -6%* 531 536 +1%* (*) -2% excluding FX impact (*) +5% excluding FX impact -7%* n Sharp exchange rate impact in recent quarters. n In 3Q’13, profit increased due to lower provisions—Stable basic revenues excluding exchange rate impact (-0.3% / 2Q).—Costs below inflation.—Provisions still high. (*) -2% excluding FX impact

Santander Consumer Finance Total. 9M13 51 Aggregates Continental Europe, United Kingdom and USA Total portfolio2 (Sep’13): EUR 80bn. Attributable profit 9M’13: EUR 927 mill. EUR billion EUR million Basic data EUR 80,456 14.2 158,000 14 Countries Agreements with manufacturers for “captive” financing 57 Top 31 in 12 countries EUR 30,726 EUR 927 in loans2 Dealers-participants in deposits in attributable profit 9M’13 Million customers (1) Market share of car financing new loans and/or durable goods (2) Gross loan portfolio Continental Europe UK USA 58 4 18 Continental Europe UK USA 585 79 263

52 Global Wholesale Banking (GBM) EUR million P&L 3Q’13 %2Q’13 9M’13 %9M’12 Gross income 1,319 +8% 3,918 -2% Expenses -435 -2% -1,315 -2% LLP -475 +208% -792 +140% -2% Attributable profit 245 -36% 1,110 -25% Global Transaction Services Gross income EUR million Credit Corporate finance -4% Customer revenues; -4%* 1Q’12 2Q 3Q 4Q 1Q’13 2Q 3Q 1,336 1,137 1,088 1,029 1,229 1,043 1,135 1,538 1,277 1,176 1,184 1,379 1,220 1,319 TOTAL Trading and capital Customers +8%** n High impact from exchange rates in recent quarters. n Recovery of revenues: +3% / 9M’12 and +13% / 2Q (in constant euros). n Sharp increase in provisions due to Spain and Mexico (homebuilders) impacting profits. (*) Excluding exchange rate impact: total revenues 9M’13/9M’12: +3%; customers -1% (**) +13% excluding exchange rate impact 1,411 1,385 69 65 626 610 1,457 1,347 430 511 9M’12 9M’13 -8% Markets -3% 3,918 -2%* +19% TOTAL Trading and capital 3,992

Asset Management and Insurance 53 EUR million P&L (*) Including fees paid to the Group retail networks EUR million Total revenues for the Group* 3Q’13 %2Q’13 9M’13 %9M’12 Gross income 180 -8% 574 -12% Expenses -79 +1% -234 +1% LLP — — Attributable profit 72 -15% 247 -14% 1Q’12 2Q 3Q 4Q 1Q’13 2Q 3Q 310 302 303 316 289 304 304 751 689 639 665 702 674 613 1,061 991 942 981 991 978 917 TOTAL -6%*** Asset management Insurance -2% Asset management (***) -1% At constant perimeter and FX rates **At constant perimeter and FX rates: Total +3%; Insurance+3%; Asset Mgmt.+3% n Impacted by FX and reduction in perimeter due to strategic agreements. n At constant perimeter and FX rates, total revenues rose (+3% / 2012)—~ to 9% total revenues operating areas n Strategic agreements: to increase potential and put business in value—Around EUR 2 bn. of net capital gains generated for the Group (2011-13). 915 897 2,078 1,989 9M’12 9M’13 -4%** TOTAL Insurance -4% 2,993 2,886

54 NPL and coverage ratios, and cost of credit

55 NPL ratios % 31.03.12 30.06.12 30.09.12 31.12.12 31.03.13 30.06.13 30.09.13 Continental Europe 5.41 5.67 6.07 6.29 6.62 7.83 8.48 Spain 3.35 3.26 3.64 3.84 4.12 5.75 6.40 Portugal 4.59 5.42 6.16 6.56 6.88 7.41 7.86 Poland 4.74 4.93 4.69 4.72 7.39 8.08 7.75 Santander Consumer Finance 4.05 3.88 3.96 3.90 3.98 4.04 3.96 United Kingdom 1.82 1.83 1.94 2.05 2.03 2.01 1.98 Latin America 4.67 5.14 5.31 5.42 5.44 5.26 5.32 Brazil 5.76 6.51 6.79 6.86 6.90 6.49 6.12 Mexico 1.61 1.64 1.69 1.94 1.92 2.20 3.58 Chile 4.52 4.65 5.00 5.17 5.51 5.81 6.00 USA 2.46 2.27 2.31 2.29 2.23 2.22 2.26 Operating Areas 3.95 4.09 4.33 4.53 4.71 5.16 5.42 Total Group 3.98 4.11 4.34 4.54 4.76 5.18 5.43 (*) Increase in the quarter fully due to the entry of homebuilders (*)

56 NPL coverage ratios % 31.03.12 30.06.12 30.09.12 31.12.12 31.03.13 30.06.13 30.09.13 Continental Europe 54.1 58.9 68.4 73.0 71.0 63.3 61.1 Spain 49.4 43.6 45.7 50.0 50.3 43.1 45.0 Portugal 57.6 53.4 51.7 53.1 52.9 52.4 51.9 Poland 66.3 62.1 64.0 68.3 67.6 59.3 64.1 Santander Consumer Finance 108.3 110.7 109.7 109.5 108.7 106.9 109.2 United Kingdom 37.5 37.5 44.8 44.1 42.1 42.1 41.6 Latin America 91.6 89.5 89.8 87.5 86.7 85.4 82.9 Brazil 90.0 90.1 92.0 90.2 90.4 91.3 92.0 Mexico 194.9 183.4 175.4 157.3 157.1 142.7 99.0 Chile 68.3 64.0 60.8 57.7 53.9 49.9 49.7 USA 107.4 113.3 109.7 105.9 102.8 102.8 96.6 Operating Areas 62.1 64.8 71.3 73.3 71.8 66.3 64.0 Total Group 61.2 64.3 69.5 72.4 70.9 66.4 63.9 (*) (*) Decrease in the quarter fully due to the entry of homebuilders

57 Cost of credit % 31.03.12 30.06.12 30.09.12 31.12.12 31.03.13 30.06.13 30.09.13 Continental Europe 1.28 2.13 2.77 3.16 3.13 2.33 1.71 Spain 1.23 1.37 1.34 1.34 1.23 1.26 1.36 Portugal 1.04 1.23 1.45 1.40 1.18 1.10 0.93 Poland 0.95 1.05 1.07 1.17 1.22 1.18 1.09 Santander Consumer Finance 1.41 1.41 1.33 1.27 1.26 1.15 1.13 United Kingdom 0.28 0.29 0.29 0.30 0.29 0.26 0.26 Latin America 4.16 4.45 4.56 4.93 4.96 4.77 4.63 Brazil 6.13 6.61 6.86 7.38 7.46 7.07 6.72 Mexico 1.87 1.86 1.96 2.23 2.46 2.73 3.27 Chile 1.59 1.67 1.74 1.90 1.95 2.00 1.96 USA 1.08 0.86 0.76 0.61 0.51 0.34 0.19 Operating Areas 1.49 1.89 2.20 2.42 2.41 2.05 1.73 Total Group 1.51 1.91 2.20 2.38 2.38 2.05 1.77 Cost of credit = 12 months net loan-loss provisions / average lending

58 Total coverage (problematic assets + performing loans) Sep’13 52% Coverage by borrowers’ situation (September 2013) Gross risk Coverage Net risk Fund Non-performing 8,545 4,669 3,876 Substandard1 1,827 723 1,104 Foreclosed real estate 8,020 4,293 3,727 Total problematic assets 18,392 9,685 8,707 Performing loans2 2,251 984 1,267 Real estate exposure 20,643 10,669 9,974 Spain’s run-off real estate. Exposure and coverage ratios (1) 100% up-to-date with payments (2) Performing loans: loans up-to-date with payments Non-performing 55% Substandard1 40% Foreclosed real estate 54% Total problematic assets 53% Performing loans2 44% EUR Million provisions / exposure (%) Total real estate exposure

59 LOANS with real estate purpose Foreclosed REAL ESTATE EUR Million Sep’13 Dec’12 Var. EUR Million Gross amount Coverage Net amount Spain’s run-off real estate. Loans and foreclosures n Finished buildings 5,377 6,218 -841 n Buildings under constr. 458 1,289 -831 n Developed land 3,613 3,861 -248 n Building and other land 1,392 1,210 +182 n Non mortgage guarantee 1,783 2,072 -289 Total 12,623 14,650 -2,027 n Finished buildings 2,498 39% 1,537 n Buildings under constr. 641 50% 320 n Developed land 3,532 62% 1,360 n Building land 1,192 62% 456 n Other land 157 66% 54 Total 8,020 54% 3,727

60 Spreads

61 Spreads on loans and deposits % 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 Retail Banking Spain Loan spreads 1.60 1.59 1.64 1.81 2.21 2.26 2.33 Deposit spreads 1.64 1.68 1.44 0.81 0.16 0.28 0.15 TOTAL 3.24 3.27 3.08 2.62 2.37 2.54 2.48 Retail Banking Portugal Loan spreads 2.34 2.39 2.47 2.47 2.44 2.44 2.44 Deposit spreads (0.91) (0.96) (1.13) (1.24) (1.22) (1.18) (1.06) TOTAL 1.43 1.43 1.34 1.23 1.22 1.26 1.38 Retail Banking Poland Loan spreads 3.29 3.33 3.41 3.48 2.41 2.45 2.43 Deposit spreads 1.27 1.26 1.16 0.96 0.73 0.72 0.73 TOTAL 4.56 4.59 4.57 4.44 3.14 3.17 3.16 Santander Consumer Finance Loan spreads 4.51 4.57 4.67 4.73 4.76 4.83 4.93 Retail Banking United Kingdom Loan spreads 2.49 2.54 2.60 2.66 2.78 2.80 2.85 Deposit spreads (1.02) (1.18) (1.26) (1.27) (1.25) (1.17) (1.00) TOTAL 1.47 1.36 1.34 1.39 1.53 1.63 1.85

62 Spreads on loans and deposits % 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 Retail Banking Brazil Loan spreads 14.44 14.84 14.25 13.41 13.09 12.51 11.93 Deposit spreads 0.73 0.65 0.56 0.51 0.72 0.75 0.84 TOTAL 15.17 15.49 14.81 13.92 13.81 13.26 12.77 Retail Banking Mexico Loan spreads 8.20 8.35 8.33 8.49 8.46 8.41 8.34 Deposit spreads 1.96 1.92 1.93 2.00 1.86 1.64 1.56 TOTAL 10.16 10.27 10.26 10.49 10.32 10.05 9.90 Retail Banking Chile Loan spreads 4.56 4.62 4.48 4.36 4.31 4.27 4.01 Deposit spreads 2.45 2.36 2.36 2.25 2.39 2.47 2.42 TOTAL 7.01 6.98 6.84 6.61 6.70 6.74 6.43 Retail Banking USA Loan spreads 2.36 2.45 2.37 2.39 2.51 2.52 2.52 Deposit spreads 0.46 0.41 0.37 0.29 0.34 0.33 0.57 TOTAL 2.82 2.86 2.74 2.68 2.85 2.85 3.09

63 Quarterly Income Statement

64 Santander Group EUR million 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 9M 12 9M 13 Gross income 11,287 11,123 10,713 10,283 10,290 10,320 9,738 33,123 30,348 Operating expenses (5,043) (4,934) (5,067) (4,939) (4,996) (5,000) (4,862) (15,044) (14,858) Net operating income 6,244 6,188 5,646 5,344 5,294 5,320 4,876 18,079 15,490 Net loan-loss provisions (3,118) (3,401) (2,987) (3,134) (2,919) (3,065) (2,600) (9,506) (8,583) Other (570) (478) (556) (697) (372) (542) (510) (1,604) (1,424) Ordinary profit before taxes 2,556 2,309 2,103 1,512 2,003 1,713 1,766 6,968 5,482 Ordinary consolidated profit 1,853 1,663 1,463 1,257 1,508 1,306 1,302 4,979 4,115 Ordinary attributable profit 1,627 1,427 1,264 1,024 1,205 1,050 1,055 4,318 3,310 Attributable profit 1,627 123 122 423 1,205 1,050 1,055 1,872 3,310

65 Santander Group Constant EUR million 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 9M 12 9M 13 Gross income 10,490 10,583 10,112 10,009 10,056 10,166 10,125 31,185 30,348 Operating expenses (4,750) (4,736) (4,821) (4,809) (4,908) (4,937) (5,013) (14,307) (14,858) Net operating income 5,740 5,847 5,290 5,200 5,148 5,229 5,113 16,877 15,490 Net loan-loss provisions (2,862) (3,202) (2,824) (3,063) (2,836) (3,016) (2,732) (8,888) (8,583) Other (530) (446) (525) (699) (367) (537) (520) (1,500) (1,424) Ordinary profit before taxes 2,348 2,199 1,942 1,438 1,945 1,676 1,862 6,489 5,482 Ordinary consolidated profit 1,700 1,582 1,343 1,195 1,464 1,277 1,375 4,626 4,115 Ordinary attributable profit 1,504 1,360 1,160 967 1,171 1,026 1,114 4,023 3,310 Attributable profit 1,504 56 14 366 1,171 1,026 1,114 1,573 3,310

66 Continental Europe EUR million 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 9M 12 9M 13 Gross income 3,470 3,332 3,147 3,018 3,198 3,188 3,176 9,949 9,562 Operating expenses (1,618) (1,602) (1,625) (1,613) (1,668) (1,637) (1,630) (4,844) (4,935) Net operating income 1,853 1,730 1,522 1,405 1,530 1,551 1,547 5,105 4,627 Net loan-loss provisions (1,095) (1,087) (866) (1,056) (901) (993) (946) (3,047) (2,840) Other (179) (175) (73) (147) (192) (194) (188) (427) (574) Ordinary profit before taxes 579 469 583 202 437 363 413 1,630 1,213 Ordinary consolidated profit 436 365 432 181 336 293 321 1,232 950 Ordinary attributable profit 421 351 419 173 307 250 275 1,192 833 Attributable profit 421 (1,635) (1,048) (484) 307 250 275 (2,261) 833

67 Spain EUR million 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 9M 12 9M 13 Gross income 2,043 1,961 1,919 1,758 1,815 1,794 1,755 5,923 5,364 Operating expenses (969) (954) (963) (937) (962) (951) (950) (2,886) (2,863) Net operating income 1,074 1,008 956 821 853 844 805 3,037 2,501 Net loan-loss provisions (724) (670) (466) (613) (516) (690) (630) (1,860) (1,835) Other (55) (46) 7 (34) (36) (29) (59) (94) (124) Profit before taxes 295 291 496 175 301 125 116 1,083 542 Consolidated profit 204 202 343 115 208 87 74 749 369 Attributable profit 202 201 342 116 207 86 73 746 367

68 Portugal EUR million 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 9M 12 9M 13 Gross income 318 267 258 195 231 233 228 842 693 Operating expenses (126) (126) (126) (128) (124) (122) (123) (379) (369) Net operating income 191 141 132 67 107 112 105 464 324 Net loan-loss provisions (131) (91) (106) (65) (64) (62) (56) (328) (182) Other (16) (5) 6 4 (13) (17) (6) (15) (36) Profit before taxes 44 45 31 7 31 32 44 120 106 Consolidated profit 32 38 26 26 21 25 32 96 77 Attributable profit 32 38 26 26 21 25 32 96 77

69 Poland Constant EUR million 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 9M 12 9M 13 Gross income 220 246 233 265 315 340 350 699 1,004 Operating expenses (106) (105) (105) (108) (156) (144) (140) (316) (440) Net operating income 114 140 128 157 159 196 210 383 564 Net loan-loss provisions (20) (33) (27) (32) (41) (51) (36) (80) (128) Other 2 (0) 0 (3) (5) 6 (2) 2 (1) Profit before taxes 96 108 101 122 112 150 172 305 435 Consolidated profit 75 88 81 97 90 123 137 243 350 Attributable profit 73 85 78 92 70 91 101 236 261

70 Santander Consumer Finance EUR million 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 9M 12 9M 13 Gross income 810 782 780 770 776 775 801 2,372 2,352 Operating expenses (338) (337) (347) (360) (351) (341) (345) (1,021) (1,038) Net operating income 472 445 433 410 425 434 456 1,350 1,315 Net loan-loss provisions (176) (199) (174) (204) (171) (131) (158) (549) (460) Other (18) (6) (17) 1 (21) (29) (15) (42) (65) Profit before taxes 278 240 242 207 233 274 283 760 790 Consolidated profit 216 186 190 167 184 210 217 592 611 Attributable profit 206 176 181 162 176 201 208 562 585

71 United Kingdom GBP million 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 9M 12 9M 13 Gross income 1,088 1,006 936 947 973 1,048 1,022 3,030 3,044 Operating expenses (552) (558) (546) (524) (560) (567) (538) (1,656) (1,665) Net operating income 535 448 390 423 413 481 484 1,373 1,379 Net loan-loss provisions (172) (173) (147) (161) (137) (103) (132) (492) (371) Other (53) (32) (24) (27) (35) (87) (22) (109) (145) Ordinary profit before taxes 311 244 218 236 241 291 330 772 863 Ordinary consolidated profit 243 198 190 207 191 224 261 632 675 Ordinary attributable profit 243 198 190 207 191 224 261 632 675 Attributable profit 243 198 256 207 191 224 261 697 675

72 Brazil Constant EUR million 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 9M 12 9M 13 Gross income 3,628 3,842 3,780 3,621 3,596 3,454 3,431 11,249 10,482 Operating expenses (1,281) (1,276) (1,335) (1,391) (1,295) (1,319) (1,381) (3,892) (3,995) Net operating income 2,347 2,566 2,444 2,230 2,301 2,136 2,050 7,357 6,487 Net loan-loss provisions (1,242) (1,554) (1,374) (1,343) (1,395) (1,331) (1,182) (4,170) (3,908) Other (185) (221) (219) (105) (74) (128) (135) (625) (337) Profit before taxes 920 791 851 783 832 677 734 2,562 2,242 Consolidated profit 684 589 607 621 620 512 520 1,880 1,651 Attributable profit 534 454 485 497 473 408 396 1,473 1,277

73 Mexico Constant EUR million 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 9M 12 9M 13 Gross income 691 672 734 754 776 779 775 2,096 2,330 Operating expenses (256) (260) (293) (333) (302) (299) (317) (810) (918) Net operating income 435 411 441 421 474 480 458 1,286 1,412 Net loan-loss provisions (80) (105) (129) (159) (142) (180) (261) (313) (583) Other (2) 30 6 22 26 (2) (3) 34 21 Profit before taxes 353 337 318 284 358 299 194 1,007 850 Consolidated profit 301 270 271 241 316 256 170 841 742 Attributable profit 300 269 270 182 242 194 129 840 564

74 Chile Constant EUR million 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 9M 12 9M 13 Gross income 562 567 527 587 538 554 600 1,656 1,692 Operating expenses (214) (232) (228) (234) (227) (244) (244) (674) (716) Net operating income 348 334 299 354 310 310 356 982 976 Net loan-loss provisions (125) (119) (162) (152) (150) (145) (160) (406) (456) Other (4) (10) 14 6 (1) 3 6 (1) 8 Profit before taxes 219 205 151 208 159 168 201 575 529 Consolidated profit 189 180 129 186 144 138 173 499 455 Attributable profit 131 124 93 129 101 96 120 347 316

75 United States USD million 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 9M 12 9M 13 Gross income 869 868 803 805 803 717 674 2,540 2,193 Operating expenses (365) (381) (380) (393) (392) (390) (434) (1,126) (1,216) Net operating income 505 487 423 411 411 326 240 1,414 977 Net loan-loss provisions (93) (101) (65) (81) (36) (6) 17 (259) (25) Other (25) (35) (180) 1 (11) (12) (36) (241) (59) Profit before taxes 387 350 178 331 365 308 221 915 893 Consolidated profit 312 275 155 292 307 248 217 742 772 Attributable profit 312 275 155 292 307 248 217 742 772

76 Corporate Activities EUR million 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 9M 12 9M 13 Gross income (326) (184) (280) (218) (328) (141) (168) (789) (638) Operating expenses (171) (156) (149) (54) (178) (177) (170) (476) (526) Net operating income (496) (340) (429) (272) (507) (319) (338) (1,265) (1,164) Net loan-loss provisions (4) 4 (30) (54) (29) (189) 14 (31) (203) Other (61) 18 (74) (439) (66) (89) (124) (116) (279) Ordinary profit before taxes (562) (318) (533) (765) (602) (596) (447) (1,412) (1,646) Ordinary consolidated profit (559) (381) (565) (639) (547) (523) (424) (1,505) (1,494) Ordinary attributable profit (531) (397) (577) (619) (547) (521) (422) (1,505) (1,491) Attributable profit (531) 285 (333) (563) (547) (521) (422) (579) (1,491)

Santander a bank for your ideas 77

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Banco Santander, S.A.
Date: October 28, 2013	By:	/s/ José Antonio Álvarez
		Name: José Antonio Álvarez
		Title:   Executive Vice President