Santander Institutional Presentation

9M’17

2

Santander, a leading financial group

People (employees) 200,949

Branches 13,704

Shareholders (mill.) 4.1

Customers (mill.)* 132

Total balance sheet (€ trill.) 1.47

Market capitalisation (€ bill.; 09-30-17) 95

2016 Attributable profit (€ mill.) 6,204

Gross loans (€ bill.; w/o repos) 857

Customer deposits + mutual funds (€ bill.; w/o repos) 892

Communities (million people helped, 2016)* 1.7

9M’17

9M’17 Attributable profit (€ mill.) 5,077

(*) Excluding Banco Popular

3

Our purpose and business model

Aim and value creation

Structure and businesses

9M'17 Highlights – Results and Activity

Agenda

4

Purpose and business model

to help people and businesses prosper

to be the best retail and commercial bank that earns the lasting loyalty of our people, customers, shareholders and communities

Predictable,

stable profit

throughout

the cycle

Cash dividend

per share

growth

Sustainable, high

profitability enabling growth

opportunitiesto be exploited

Our purpose

Our aim

Our way of

doing things

5

A differential business model

Serving 132 million customers with critical mass in 10 core markets

drives profitable growth

Our geographic diversification generates predictable profit,

meaning lower capital needs

The subsidiary model, with a strong culture of working together,

drives efficiency and service excellence

6

Spain 10%

SCF 15%

Poland 3%

Portugal 3%

UK 19%

Brazil 28%

Mexico 11%

Chile 3%

Argentina 3%

USA 4%Others 1%

02

Customers by country, Sep’17

132million customers

132 million customers in markets with a total population of one billion people

14.8 16.5

Sep 16 Sep 17

Loyal customers (million) Digital customers (million)

20.224.2

Sep 16 Sep 17

Strategic priorities are to increase customer loyalty and digitalisation of financial services in view of consumers’ demands and expectations

Note: All figures excluding Banco Popular

+12%+20%

7

Simple, tailor-made solutions to strengthenthe lasting LOYALTY of our customers

Innovative product: current accounts, cards, …

Banco Santander aims to satisfy the needs of all types of customers

Individuals with different income levels; companies of any size and sector; private corporations and public institutions

1|2|3 World

Santander Select

Santander Private Banking

The differentiated value proposalfor high income customers

A specialised service modelfor higher income customers

A network of services suppliers certified by Santander

to help internationalise businesses

Santander TradeNetwork

Global TreasurySolutions

Santander Flame

A service that helps multinational companies manage their treasuries remotely

An online platform to execute and manage foreign exchange

transactions and risk

Solutions to support the INTERNATIONALISATION

and growth of companies

Santander SMEs A global solution to supportthe development of SMEs

>68,000

exporters and importers

>60

multinational companies

Santander Cash NexusPlatform for multinationals with a complete suite of solutions that allows us to deliver local transactional services through a single global point of entry

~175

multinational companiesBest Bank in the world for SMEs

8

We are transforming our commercial model via digital channels, while strengthening the personal service

New DIGITAL products / services

Santander NEO CRM

With simple access to the range of banking services

and personalised advice

This commercial intelligencetool offers a 360º view of customer

behaviour and preferences

SmartRed / WorkCafé

An initiative to transform the customer

experience at branches

Biometrics

9

Customers

FRONT END

BACK END – Data Processing Centre

Markets

ATMs

Branches

Mobile

Points of sales (POS)

The evolution of our technology platform boosts the digital transformation, facilitating the development of new business capacities

Agile methodology Applications targeting

employees

USD 200 million fund

for disruptive innovation in FinTech

Internet

Santander starts from a sound, robust technological position, recognised as one

of the best among banks with a global reach

Santander Group has based its digital transformation on the following measures

Improving the customer experience in the channels

Improved data quality and use

New ways of working

Focus on mobile banking, digitalisation of processes and

new design of customer journey

Big Data & Analytics, Cognitive, Artificial Intelligence

Lastly, Santander is positioning itself in the Fintech (Financial Technology)ecosystem as an innovative bank and a benchmark in the sector

Next-generation technology platform

Brazil

Mexico

Spain

United Kingdom

Contact

Centres

10

Santander is a strong brand that has great recognition in the Group’s main markets and globally

Expresses a unique

international

positioning: real

prosperity every day

Reflects our

positioning based on

our purpose: helping

people and

businesses prosper

Customer focused,

based on the belief

that everything we

do should be

Simple, Personal

and Fair

The brand is home to the Group’s Culture and Identity

Brand Finance. Banking 500, 2017

TOP 10 BANKING

BRANDS

One of the most valued brands in the world

5th best global Retail Banking brand

2nd most valuable bank brand in Europe(The Banker, Brand Finance)

Best Bank in the world for SMEs

Best Bank in Latin America (Euromoney Magazine)

BEST GLOBAL

BRANDS 2017

11

Critical mass in 10 core markets

(1) Lending (2) UK mortgages (excluding Social Housing),Consumer credit and commercial lending (excluding Financial Institutions) (3) Including Santander Consumer Finance business (SCF) (4) In the states where the Group operates. (5) Including SCF UK (6) Including Banco Popular. Excluding it: 13%. Data: Sep’17 or latest available. Branches do not include Santander Consumer Finance business

High market shares in retail and commercial banking

USA

Mkt. share1,4: 3%

Branches: 694

Argentina

Mkt. share1: 11%

Branches: 482

Mkt. share1: 15%

Branches: 587

PortugalBrazil

Mkt. share1: 9%

Branches: 3,422

UK

Mkt. share2: 10%

Branches: 820

Mkt. share1, 6: 19%

Branches: 2,857

Spain

Mkt. share1: 19%

Branches: 406

Chile

Mkt. share1,3: 10%

Branches: 592

Poland

Mkt. share1: 13%

Branches: 1,401

Mexico

Nº countries5: 15

Branches: 549

SCF

12

Our geographic diversification…

(*) Excluding Corporate Centre and Real Estate Activity Spain(1) Popular included (2%)

Underlying attributable profit 9M´17*

UK, 16%

Spain , 15%

SCF, 13%

Portugal, 5%

Poland, 3%

USA, 5%

Mexico, 7%

Brazil, 26%

Chile, 6%

Argentina, 4%

EuropeAmericas

48% 52%

1

13

… which provides us with a high capacity to absorb provisions

... is fuelling more profitable and sustainable business, …

Pre-provision profit Profitability drivers

Our business model allows us to generate high pre-provision profit …

2005 €9 billion

2008 €18 billion

2009-2016 > €22 billion

per year

9M’17 €19 billion

Cost of credit

Pre-provision profit / loans

1.02% 1.36% 1.40% 1.65%

2.44%

1.69% 1.43% 1.25% 1.18% 1.12%

2008 2009 2010 2011 2012 2013 2014 2015 2016 9M'17

3.03%3.28% 3.26% 3.25% 3.06% 2.94% 3.04% 2.90% 2.83% 2.96%

(*) Including Banco Popular

*

14

… and generates predictable and growing profit over the economic cycle

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 9M'17

7.6

9.1 8.9 8.9

8.2

5.3

2.3

4.2

5.8 6.0 6.2

5.1

Group attributable profitSantander has the lowest volatility in earnings among peers…

Source: Bloomberg; Note: GAAP criteria

(1) The analysis takes the quarterly EPS to Jun’17, starting from the first available data since Jan’99 (2) Including Banco Popular

…with growing profits

Statutory profit growth, CAGR (%), 1998 vs. 2016

Average volatility of quarterly reported EPS (%), 1999-1H171

716

Best

360

128 12092

7951 46

9

4432

+10+15+3+8+10+10+12+0<0<0+6

2

(€ bn)

15

This model requires lower capital needs

Strong capital position, appropriate for its business model,

geographic diversification, balance sheet structure, risk profile and

regulatory requirements

10.80% Capital (fully-loaded CET1) in Sep’17

Capital Our risk culture

Called risk pro, which defines the way in which we

understand and manage risks on a daily basis

Responsibility

Challenge

Resilience

Customer

focus

Simplicity

c.1/3Accumulate capital

Fund business

growth

Increase

cash dividends

per share

c.1/3

+9%cash DPS

2017(e) over 2016

+10%1

customer revenues9M’17 over 9M’16

(1) Constant euros, NII + fees. Including Popular

Top tierprofitability

allows us to…

CET1 target:+40 bps per quarter

16

The governing bodies of each subsidiary shall see to it

that their company is managed rigorously and prudently

Management is carried out by local management teams

who provide great knowledge and experience in relation

to local customers and markets

They are subject to the regulation and supervision of their

respective local authorities, without prejudice to the global

supervision of the Group by the European Central Bank

Customer funds are secured by the national deposit

guarantee funds

Cortafuegos

Santander businesses are organised through a decentralised model …

02The subsidiary model…

... with subsidiaries legally independent and ... ... autonomous in capital and liquidity

This model is a

strong incentive

for local managers

and enables local

resolvability

Firewall

17

… with a strong culture of working together, drives efficiency and service excellence …

Collaboration means opportunities

because of our scale in 10 markets

Our ability to collaborate across countries gives us an

“unfair advantage”, and leads to a better outcome for

customers and value creation for shareholders

Santander Wallet

Global solution for >2 million customers

Launched:

Upcoming:

Santander is one of the most efficient

international banks

The satisfaction and experience of our customers

continue to be one of our priorities

We aim to keep on improving the efficiency ratio through

greater efficiency in technology and operation

processes and in the corporate centres, as well as from

greater digitalisation of the commercial distribution model

18

02... and a value-adding Corporate Centre

Making the Group’s governance more robust, through policies,

models and control frameworks which allow the Group to implement

corporate criteria and ensure effective supervision over the Group

Maximises subsidiaries’ competitiveness.The Group generates a higher result than the

sum of each of the local banks acting in isolation

Making the Group’s units more efficient by unlocking cost management

synergies, economies of scale and achieving a common brand

Sharing the best commercial practices, focusing on global connectivity,

launching global commercial initiatives and fostering digitalisation

19

Our purpose and business model

Aim and value creation

Structure and businesses

9M'17 Highlights – Results and Activity

Agenda

20

Our aim is to be the

best retail and

commercial bankthat earns the lasting

loyalty of our people,

customers, shareholders

and communities.

Aim and value creation

Communities

1.7million

people helpedin 2016

Customers

132million

Shareholders

4.1million

People

189,254employees

Note: All figures excluding Banco Popular

21

The strategy for managing people focuses on six major challenges

Show

respect

Truly

listen

Talk

straight

Keep

promises

Actively

collaborate

Bring

passion

Support

people

Embrace

change

Corporate behaviours are the basis for becoming a bank that is more Simple, Personal and Fair

79%of employees in 2016

perceive Banco Santander asSimple, Personal and Fair

78%employee

engagement rate in 2016

189,254Sep'17

the first globalrecognition networkCertified excellence

in employee conditions1

Note: All figures excluding Banco Popular (1) Top Employers Institute recognizes the excellent working conditions at Santander Spain, Bank Zachodni WBK in Poland, Santander UK and at the

Santander Consumer Finance units in Germany, the Netherlands and Belgium

People

Talent management

Expertise and

development

Remuneration

and benefits

Employee

experience

Technology

Culture

6 challenges

22

New digital apps

Our value proposal aims to meet the needs of our different customer profiles

Operational excellence to increase customer satisfaction by offering the best service at the lowest price possible

16.5 (+12%)million loyalcustomers

24.2 (+20%)million digitalcustomers

Number of countries where Santander is Top 3 in customer satisfaction1

(1) Corporate benchmark of customer satisfaction

Santander NEO CRM SmartRed

Simple, tailor-made solutions to:

Strengthening personal service

132MillionSep’17

1H'15 1H'17

3

6

c. 70% of our PBT

Customers

strengthen the lasting loyalty

of our customers …

… and support the internationalisation

and growth of companies

Santander Trade Network

Global Treasury

Solutions

Santander Flame

1|2|3 World

Santander Select

Santander SMEs

Santander Private Banking

Santander

Cash Nexus

Note: All figures excluding Banco Popular

23

4.1million

Sep'17

+5%Expected dividend per share growth in 20171

Among the best

in Europe by profitability

Underlying RoTE

9M’17

11.8%

4.20 euroSep’17

10.80%CET1 fully loaded

Sep’17

Institutional 60.3%

Individuals 38.5%

Board 1.2%

Share capital distribution

(By Investor, 30-September-17)

Tangible book

value per shareWe strengthened our capital

Group Strategy Update: sharing the bank's strategy

and outlook with analysts and investors

Chairman, CEO, CFO, UK, Brazil, Spain, USA,

Mexico and Country Heads of the rest of units

Delivering shareholders value. Increased remuneration and payment of the four usual dividends maintained

We offer our shareholders an attractive sustainable returnto maintain their lasting confidence. Strong commitment

Shareholders

Note: All figures including Banco Popular. (1) Total dividends charged to 2017's earnings are subject to the Board and AGM approval. The Board already approved the first interim dividend for €0.06

paid on 4 August and to apply the Santander Dividendo Elección (scrip dividend) programme in the second interim dividend.

New York, October 2017

24

Contributing to the economic and social prosper of people

and businesses in a responsible and sustainable way

Firm support of higher education with Santander Universities

36,684scholarships

granted in 2016

1,183agreements with universities

and academic institutionsin 21 countries

Integration of ethical, social and environmentalcriteria in the development of our business

1.7 million people

helped

€ 209 million social investment

in communities in 2016

7,082 megawatts financed in

renewable energy projects in 2016

1.7million people

helped in 2016

Additional information in the 2016 sustainability report (click link )

Nº 1 Support higher education by the Varkey Foundation in cooperation with UNESCO

-8% reduction in electricity

consumption in 2016

€ 157 million invested in higher education in 2016

1,407 universities in 23 countries form part of Universia

Communities

in the DJSI socially responsible investment index

(since 2000) and in the FTSE4Good (since 2002)

1st bank in Europe and

6th in the world in the

Note: All figures refer to 2016 and exclude Banco Popular

25

Employees

Top 3 bank to work for

in the majority of our

geographies

Our 2018 targets

(*) Except the US – approaching peers

People Customers Shareholders Communities

17 mill. retail loyal customers

1.6 mill. loyal SMEs and corporates

Customer loans growth above peers

All geographies top 3 in customer service*

30 mill. digital

customers (x2)

C. 10% CAGR of fee income 2015-2018

Cost / Income 45-47%

2015-2018 average cost of

credit: 1.2%

RoTE >11.5%

Increasing EPS, reaching double digit growth by 2018

30%-40% cash dividend pay-out: Yearly DPS increase

FL CET1 > 11%

People supported

in our communities:

5.0 mill. in 2016-18

c. 130k scholarships

in 2016-18

26

Our purpose and business model

Aim and value creation

Structure and businesses

9M'17 Highlights – Results and Activity

Agenda

27

Corporate governance

Robust corporate governance is key for guaranteeing a sustainable business model over the long term

Annual General Meeting

Board of Directors

Board Committees

Balanced Board

composition

Respect for

shareholders’ rights

Maximum transparency,

particularly in terms of

remuneration

At the forefront of international

best governance practices

28

27%

73%

40%

60%

Board of directors

Decision-making process

A board of directors is aware of the business, is well balanced and has vast experience

It makes decisions by consensus and has a long-term vision

Debate of the issues and effective challenge by external board members

Board of directors (December 2016)

Executive Committee Risk Supervision, Regulationand Compliance Committee

50%

50%

100%

Other Board Committees1:

Executives Non-executives

female

directors

Audit Committee, Appointments Committee, Remuneration Committee

International Committee,

(1) For more information about the Board committees, click on a Board Committee name

Innovation and Technology Committee

International Advisory Board

29

Internal control framework

The Santander Group is structured around subsidiaries, whose parent is Banco Santander S.A., that are autonomous in capital and liquidity

Its internal governance system comprises a governance model and corporate frameworks

The model sets the principles that regulate the relationshipbetween the Group and its subsidiaries and the interaction that must exist between them at three levels

(1) Senior executive (2) Second-ranking executive (3) Such as risks, compliance, technology, auditing, accounting, finances, strategy, human resources and communications

Parent-subsidiary governance model

The corporate frameworks establish common principles of action in matters that are significant for their impact on the Group’s risk profile3

30

Based on 9 markets and on the consumer finance business in Europe, supported by the Corporate Centre activities and other functions

Group structure

Units and business

USABrazilMexicoChileArgentina

UruguayPeru Colombia

Spain

Portugal

United Kingdom

SCF1

Poland

Asia Pacific

Representative offices

Global Corporate Banking

Group functions and Corporate Centre activities

(1) Santander Consumer Finance (SCF) with presence in Austria, Belgium, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Poland, Portugal, Spain, Sweden, Switzerland and UK

Communications, Corporate Marketing and Research

Technology and Operations

General Secretariatand Human Resources

UniversitiesCompliance & Conduct

Santander Digital

Internal Audit

Chairman’s Office and Strategy

Risk

Financial Accounting and Control

FinancialFin. Planning

& Corporate Development

Costs

Wealth Management

31

Units and business

32

Spain – excl. Popular

(*) Million euros

Note: Loans excluding repos. Funds: deposits excluding repos + marketed mutual funds

Top 3 in customer funds, corporate loans and private banking

Highlights 9M'17Profitable growth

Branches 2,857

Employees 22,904

Loyal customers (millions) 1.6

Digital customers (millions) 3.0

Gross loans* 148,838

Customer funds* 240,192

Underlying attributable profit* 914

Contribution to Group’s profit** 13%

Bank of choice for corporates

Improve efficiency and customer experience

Best bank to work for

STRATEGIC PRIORITIES

33

Santander Consumer Finance

(*) Million euros. Note: Loans excluding repos. Funds: deposits excluding repos + marketed mutual funds. Underlying profit does not include -€85MM in 3Q’17 related to integration costs.(1) UK data considered in SAN UK; (**) Customers with an active contract (do not consider SC UK)

• Finland

• Norway

• Sweden

• Denmark

• Netherlands

• Germany

• Spain

• Italy

• Portugal

• Poland

• France

• Austria

• Belgium

• Switzerland

• UK1

SCF is Europe’s market leaderin consumer finance,

generating business in 15 countries1

Highlights 9M'17

Branches 549

Employees 15,045

Customers** (millions) 19.6

Gross loans* 89,003

Customer funds* 35,777

Underlying attributable profit* 943

Contribution to Group’s profit 13%

Maintain profitability

Gain market share

Manage agreements withvehicle manufacturersproactively

Speed up the digitalisationof the business

STRATEGIC PRIORITIES

Digital interactionMobile payments

34

Poland

(*) Million euros

Note: Loans excluding repos. Funds: deposits excluding repos + marketed mutual funds

One of Poland’s main banks.The leader in mobile and online banking

and second in the card market

Highlights 9M'17

STRATEGIC PRIORITIES

Top 3 in quality of service, increasing the number of loyal customers

Branches 592

Employees 11,691

Loyal customers (thousands) 1,350

Digital customers (thousands) 2,030

Gross loans* 22,226

Customer funds* 26,824

Underlying attributable profit* 219

Contribution to Group’s profit 3%

Remain the leader in digital channels in Poland

Gain market share in volumes

Remain the leader in profitability

35

Portugal – excl. Popular

(*) Million euros

Note: Loans excluding repos. Funds: deposits excluding repos + marketed mutual funds

Portugal’s most profitablebank with high market share

in loans and deposits

Highlights 9M'17 Keep on gaining profitable market share

Branches 587

Employees 6,022

Loyal customers (thousands) 681

Digital customers (thousands) 551

Gross loans* 31,190

Customer funds* 32,017

Underlying attributable profit* 336

Contribution to Group’s profit 5%

Optimise the cost of funds

Improve efficiencyand cost of credit

Adjust the capital structure to the new regulatory requirements

STRATEGIC PRIORITIES

36

United Kingdom

(*) Million euros

Note: Loans excluding repos. Funds: deposits excluding repos + marketed mutual funds

Santander UK is strengthening its position as a customer-centric

retail and commercial bank

Highlights 9M'17 Grow customer loyaltyand market share

Branches 820

Employees 25,722

Loyal customers (millions) 4.2

Digital customers (millions) 5.0

Gross loans* 235,704

Customer funds* 207,861

Underlying attributable profit* 1,201

Contribution to Group’s profit 16%

Deliver operationaland digital excellence

Growing profitability and a strong balance sheet

STRATEGIC PRIORITIES

Support communities through skills, knowledge and innovation

Live the “Santander way” through our behaviours

37

Brazil

SantanderWay

(*) Million euros

Note: Loans excluding repos. Funds: deposits excluding repos + marketed mutual funds

Solid model, accelerating itscommercial transformation to

focus on the customer

Highlights 9M'17 Focus onrevenue growth

Branches 3,422

Employees 46,261

Loyal customers (millions) 4.0

Digital customers (millions) 8.0

Gross loans* 75,622

Customer funds* 113,031

Underlying attributable profit* 1,902

Contribution to Group’s profit 26%

Gain market share in acquiring, consumercredit, SMEs, …

Digital transformation

Risk managementand recoveries

STRATEGIC PRIORITIES

SMEs Agribusiness

Payrolls

Santander One

38

Mexico

Select Me – Women proposition

(*) Million euros

Note: Loans excluding repos. Funds: deposits excluding repos + marketed mutual funds

The country’s third largest bank with highmarket share in loans and deposits. Its main

strength is innovation in customer service

Highlights 9M'17

Operational & IT transformation through CRM & digital platforms

Branches 1,401

Employees 18,217

Loyal customers (thousands) 1,896

Digital customers (thousands) 1,808

Gross loans* 29,347

Customer funds* 38,643

Underlying attributable profit* 532

Contribution to Group’s profit 7%

Boost payrolls & strengthen Santander Plus offering to drive attraction & loyalty

Enhance customer service quality across the Bank

Consolidate our positioning in SMEs and recover leadership in mortgages

STRATEGIC PRIORITIES

39

Chile

(*) Million euros

Note: Loans excluding repos. Funds: deposits excluding repos + marketed mutual funds

Chile’s leading private sector bank in terms of assets and customers

Highlights 9M'17

Branches 406

Employees 11,673

Loyal customers (thousands) 615

Digital customers (thousands) 988

Gross loans* 37,281

Customer funds* 33,215

Underlying attributable profit* 440

Contribution to Group’s profit 6%

Consolidate commercialtransformation via the new branch network model and digital banking

Continue to improve the quality of customer attention and experience for individuals and SMEs

Strengthen business with large and medium sized companies through non-lending services

Focus on fee income and on long-term profitability

STRATEGIC PRIORITIES

40

Argentina

Best internet banking

2007 to 2016Best Mobile Banking Latam

2015 and 2016

Best Bank

2010 to 2016

Best Comex Bank2016

Best Workplace2016

Best Bank

2015 and 2016

(*) Million euros. Note: Loans excluding repos. Funds: deposits excluding repos + marketed mutual funds(1) Incorporation of Citibank's retail portfolio into balance sheet on March 31st (P&L from 2Q’17)

Consolidation as the country’s leading private sector bank following its

acquisition of Citibank’s1 retail business

Highlights 9M'17 Continue the transformation towards a full digital bank

Branches 482

Employees 9,346

Loyal customers (thousands) 1,324

Digital customers (thousands) 1,907

Gross loans* 8,208

Customer funds* 12,788

Underlying attributable profit* 263

Contribution to Group’s profit 4%

New Citi customers: focus on increasing profitability

Growing loans sustaining profitability (RoRWA > 3%)

Develop business with

Public Sector

STRATEGIC PRIORITIES

Develop and grow wealth

management businesses

41

United States – excl. Popular

(*) Million euros

Note: Loans excluding repos. Funds: deposits excluding repos + marketed mutual funds

Santander US has built a strongpresence in the Northeast of the US

Highlights 9M'17

Branches 694

Employees 17,566

Loyal customers (thousands) 278

Digital customers (thousands) 778

Gross loans* 76,725

Customer funds* 60,916

Underlying attributable profit* 337

Contribution to Group’s profit 5%

Improve customer experience & loyalty

Become a full spectrum auto lender

Improve profitability

STRATEGIC PRIORITIES

Meet regulators’ expectations

42

32%

24%

32%

12%

Global Transaction Banking

Financing Solutions & Advisory

Global Markets

Capital & Other

Underlying attributable profit* 1,501

Contribution to Group’s profit 21%

Focused on corporate clients

and institutions that, given their size or

sophistication, require tailor-made services

or value-added wholesale products

Highlights 9M'17

Santander Global Corporate Banking (SGCB)

Consolidate position as experts on LATAM

Develop high value added products with low capital consumption

Increase the offer of products for commercial banking customers

Revenuesbreakdown

(9M’17)

SGCB business model rests on three pillars:

Approx. 88% of the revenues come from customers, through a Global Relationship Model and a product factory dedicated to retail banking customers which generates revenues in the amount of €1,184MM

Focus on the customer

Strong globalproduct capabilities

Interconnectionwith the local units

Reference position in Export Finance, Corporate Loans, Project Finance and Issuances, and Structured Finance, among others, in Europe and LATAM

Leveraging on the Group's network of banks and in the local expertise generating €1,188MM of revenues through connectivity

STRATEGIC PRIORITIES

(*) Million eurosNote: excluding Banco Popular

43

Santander Wealth Management

(1) Billion euros (2) Ultra high net worth

Our vision:Become the best Wealth Manager

in Europe and the Americas

Highlights 9M'17

Private Banking Customers

Private Banking Assets Under Management¹

SAM Assets Under Management¹

PRIVATE BANKINGSTRATEGIC PRIORITIES

Develop a global Private Banking proposition for our customers

Develop the UHNW2 segment proposition

Complete product and service offering

Private banking digital transformation

ASSET MANAGEMENTSTRATEGIC PRIORITIES

Become the partner of choice for our local banks

Complete the value proposition collaborating with third parties

Develop our institutional value proposition

Develop our future IT platform

c.170k

c.160

c. 180

44

Popular

(*) Million euros

Top 3 in customer funds, corporate loans and private banking

Highlights 9M'17

Branches 1,777

Employees 11,695

Gross loans* 79,573

Customer funds* 79,240

Underlying attributable profit* 178

Contribution to Group’s profit 2%

Capital increase of €7,072 million

Loyalty bonds: subscribed by ~60% of beneficiaries

Real Estate disposal4: agreement to sell 51% of RE

business to Blackstone

Rebranding of the branch network under Banco

Santander umbrella

Santander ATMs available to Popular’s customers and

euro transactions between the two banks free of charge

Strong deposits’ recovery since acquisition

BANCO POPULAR’S MEASURES IN 3Q’17

Note: Loans excluding repos. Funds: deposits excluding repos + marketed mutual funds. Underlying profit does not include -€300MM in 3Q’17 related to integration costs.

45

Our purpose and business model

Aim and value creation

Structure and businesses

9M'17 Highlights – Results and Activity

Agenda

46

9M´17 FINANCIAL HIGHLIGHTS – Group including Popular 9M´17 / 9M´16 change

(1) 9M’17 including integration costs and other (details on page 48). 9M´16 including capital gains from the disposal of the stake in Visa Europe and restructuring costs

Committed to generating value

for shareholders

Improved capital adequacy and

profitability

EPS €0.316; +6%

TNAV/share €4.20; +2%

FL CET1 10.80%

Underlying RoTE 11.8%

Attributable profit

€5,592 mill.; +14%(constant euros)

€5,077 mill.; +10%Strong and high quality profit growth

Underlying att. profit1

Improving profitability and financials per share together with a higher capital ratio

47

Digital

Mobile

Individuals

Companies

+4.1 mill. +20%

+4.5 mill. +47%

+1.6 mill. +12%

+151k +12%

Loyal customers: 16.5 million

− 15.1 million individuals and 1.4 million companies

Digital customers: 24.2 million

− 13.9 million mobile

NPL ratio 3.51%; -64 bps

Cost of credit 1.15%; -4 bps

Loans1 +1%

Customer funds1 +8%

More loyal and digital customers levered on enhanced customer experience,

drive growth in NII, fee income, volumes and credit quality

NII1

€8,489 mill.; +10%

€25,124 mill.; +7%

Fee income1

(1) % change in constant euros

9M´17 FINANCIAL HIGHLIGHTS – Group excluding Popular 9M´17 / 9M´16 change

48

3Q'17 profit impacted by several one-offs, primarily related to integrations

3Q'17 Profit

1,461

1,976 515

5,0775,592 515

3Q'17 Attr.

profit

Non-recurring 3Q'17 Underlying

profit

9M'17 Attr.

profit

Non-recurring 9M'17 Underlying

profit

9M'17 Profit

9M'17 P&L – One-off items and profit reconciliation

€ million

€ million

Non-recurring items(€ million, net of tax)

• Popular's integration process -300

• Germany's integration process -85

• Equity stakes, intangible assetsand other -130

• Total -515

+20%1

YoY

+14%1

YoY

(1) % change in constant euros

49

Revenue growth driven by

Cost of credit: 1.15% (-4 bps)

C/I ratio: 46.3% (-1.7 pp)

Excellent quality and strong top-line growth

(1) 9M’17 included integration costs and others (details on page 48). 9M´16 included capital gains from the disposal of the stake in Visa Europe and restructuring costs

NII: +7%Fees: +10%

€ million Constant

euros

9M’17

Euros

% / 9M’16

w/o Popular

Total

Group Popularw/o

Popular

Like-for-like basis (w/o Popular)

Gross income 36,330 774 35,556 9.2 7.3

Operating expenses -16,957 -484 -16,474 5.4 4.2

Net operating income 19,373 290 19,083 12.7 10.1

Loan-loss provisions -6,930 -46 -6,883 -3.2 -6.9

Underlying PBT 10,175 231 9,944 17.7 16.5

Taxes -3,497 -53 -3,444 31.0 29.8

Underlying attrib. profit 5,592 178 5,414 11.5 10.6

Non-recurring1 -515 -300 -215 -13.4 -16.1

Attributable profit 5,077 -122 5,199 12.9 12.0

9M'17 P&L – P&L breakdown

50

1Q'16 2Q 3Q 4Q 1Q'17 2Q 3Q

1,6571,541

1,6991,754

1,813

1,723

1,878

167

Solid profit growth across the board

Underlying attributable profit

Constant € million

Underlying attributable profit in core units 9M´17

€ million and % change / 9M´16 in constant euros

SCF

Brazil

UK

SCF

Spain

Mexico

Chile

USA

Portugal

Argentina

Poland

Popular

1,902

1,201

943

914

532

440

337

336

263

219

178

Note: Contribution to the SRF (net of taxes) recorded in 2Q’16 (-€120 mill.) and 2Q’17 (-€146 mill.)

(1) Excluding Popular 2Q’17 (€1,738 million) and 3Q’17 (€1,809 million)

Underlying attributable profit

€ million

1,633 1,526 1,695 1,766 1,867 1,7491 1,9761

11

1,734

2,045

Popular

n.a.

+34%

+16%

+19%

+12%

-12%

+15%

+17%

+3%

+8%

+14%

9M'17 P&L – P&L breakdown

51

Brazil 7.1 2.6

UK 2.1 -0.2

SCF 3.4 -0.6

Spain -3.0 -4.9

Mexico 12.2 7.0

Chile 3.4 1.0

USA 3.5 1.4

Portugal -7.5 -8.7

Argentina 46.7 16.4

Poland -0.9 -2.4

Corporate Centre 1.6 -0.3

Group 4.2 0.0

Revenues

vs. costs

Note: Constant euros. (1) Other income includes gains on financial transactions, income from the equity accounted method, dividends and other operating results. Contribution to the SRF recorded in 2Q'16 and 2Q'17; (2) Excluding inflation and perimeter (3) Cost of credit excluding SC USA: Sep’17 0.85%

Rose in 8 of 10 markets driven by strong recurring

customer revenues

Higher revenues, improved efficiency and positive dynamics in loan-loss provisions excl. Popular

€ million

Cost control reflected a better C/I ratio in 8 units Enhanced cost of credit in most markets

Revenues: +7% Costs: +4%(0% in real terms2)

LLPs: -7%

2,4762,609

2,770 2,851

7,862 7,8358,172

8,512

701 692 759 659

1Q'16 2Q 3Q 4Q 1Q'17 2Q 3Q

Net interest income

Fee income

Other income1

-

-

-

NominalIn real

terms2

€ million

7,3936,883

-7%

1.191.15

Cost of credit3

9M’17

LLPs

9M’16

LLPs

9M'17 P&L – P&L breakdown

52

Real estate assets 4.6

Foreclosed assets 3.4

Rental assets 1.2

RE non-performing loans (NPLs) 1.3

RE assets + RE non-perf. loans 5.9

Accelerating the reduction of real estate exposure

41.1

12.45.9

28.7

6.5

Gross value

Jun’17 Blackstone

transaction

and other

Gross value

Sep’17

Provisions Net value

Sep’17

Net value

(€ billion)

Real estate exposure2

(1) Performance in 3Q’17 impacted by Blackstone transaction (2) Santander Real estate Activity in Spain and Banco Popular

REAL ESTATE EXPOSURE IN SPAIN

€ billion%,

Coverage ratio

4.15 3.93 3.74 3.55 3.51

5.374.24

S'16 D'16 M'17 J'17 S'17

7374 75

73 72

68 66

NPL ratio

including Popular

Credit quality ratios1

11%

Coverage ratio

NPL ratio

S’17Banco Popular

47%

53

In 3Q'17 we continued to generate capital and to increase profitability

CAPITAL AND PROFITABILITY RATIOS

(1) Including rights issue completed on July, 27th 2017 (2) Adjusted for the rights issue completed on 27 July 2017

FL CET1(%)

10.5510.72 10.86 10.80+0.16

-0.02 -0.06

CET1

S’17Market &

Other (AFS)

CET1

S’17

before

Non-recurring

CET1

D’16

CET1

J’17

Pro-forma1

Organic

generation

Integration and

other

9M'16 9M'17

1.30 1.39

1.341.47

RoRWA (%)

9M'16 9M'17

10.5

11.0

10.9 11.8

RoTE (%)

EPS2 (euros)

9M'16 9M'17

0.2980.316

0.3150.350

Total

Underlying

TNAV/share2 (euros)

S'16 S'17

4.114.20

54

Delivering on our commitments to reach our targets

Loyal customers (Million)

Digital customers (Million)

Fee income1

17

Increase

Increase

2017 targets

Cost of credit

Cost to income

FY2016

15.2

0.401

0.207

10.55% +40 bpsorganic per year

EPS (€)

DPS2 (€)

FL CET1

Broadly stable48.1%

Improve1.18%

Increase8%

2520.9

9M´17

excl. Popular

16.5

46.3%

1.15%

10%

24.2

0.316 (9M’17)

0.22

10.80%

Customers and results

Group ratios2017 targetsFY2016

9M´17

incl. Popular

Note: 2016 EPS and DPS adjusted for the rights issue completed on July, 27th 2017. (1) % change in constant euros. (2) Total dividends charged to 2017's earnings are subject to the Board and AGM approval.

The Board approved the first interim dividend for €0.06 that was paid on 4 August and to apply the Santander Dividendo Elección (scrip dividend) programme in the second interim dividend.

55

Santander financial informationFor more details on the Group & countries, click below

Quarterly Financial Report

Group presentations:

Activity and Results

Countries presentations

Investor Day 2015 Online Annual Report 2016

Annual Report 2016

Group Strategy Update 2017

SCF

5656

Important information

Banco Santander, S.A. ("Santander") cautions that this presentation contains statements that constitute “forward-looking statements” within the meaning of the U.S. Private

Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “expect”, “project”, “anticipate”, “should”, “intend”, “probability”, “risk”,

“VaR”, “RORAC”, “RoRWA”, “TNAV”, “target”, “goal”, “objective”, “estimate”, “future” and similar expressions. These forward-looking statements are found in various places

throughout this presentation and include, without limitation, statements concerning our future business development and economic performance and our shareholder

remuneration policy. While these forward-looking statements represent our judgment and future expectations concerning the development of our business, a number of risks,

uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to: (1)

general market, macro-economic, industry, 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. Numerous factors, including those reflected in the Annual Report on Form 20-F filed with the Securities and Exchange Commission of the United States of

America (the “SEC”) –under “Key Information-Risk Factors”- and in the Documento de Registro de Acciones filed with the Spanish Securities Market Commission (the “CNMV”)

–under “Factores de Riesgo”- could affect the future results of Santander and could result in other results deviating materially from those anticipated in the forward-looking

statements. Other unknown or unpredictable factors could cause actual results to differ materially from those in the forward-looking statements.

Forward-looking statements speak only as of the date of this presentation and are based on the knowledge, information available and views taken on such date; such

knowledge, information and views may change at any time. Santander does not undertake any obligation to update or revise any forward-looking statement, whether as a result

of new information, future events or otherwise.

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. No investment activity should be undertaken on

the basis of the information contained in this presentation. In making this presentation available, Santander gives no advice and makes no recommendation to buy, sell or

otherwise deal in shares in Santander or in any other securities or investments whatsoever.

Neither this presentation nor any of the information contained therein constitutes an offer to sell or the solicitation of an offer to buy any securities. No offering of securities shall

be made in the United States except pursuant to registration under the U.S. Securities Act of 1933, as amended, or an exemption therefrom. Nothing contained in this

presentation is intended to constitute an invitation or inducement to engage in investment activity for the purposes of the prohibition on financial promotion in the U.K. Financial

Services and Markets Act 2000.

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.

5757

Important Information

The businesses included in each of our geographic segments and the accounting principles under which their results are presented here may differ from the included

businesses and local applicable accounting principles of our public subsidiaries in such geographies. Accordingly, the results of operations and trends shown for our

geographic segments may differ materially from those of such subsidiaries.

In addition to the financial information prepared under International Financial Reporting Standards (“IFRS”), this presentation includes certain alternative performance

measures as defined in the Guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority on 5 October 2015

(ESMA/2015/1415es) as well as Non-IFRS measures. The APMs and Non-IFRS Measures are performance measures that have been calculated using the financial

information from the Santander Group but that are not defined or detailed in the applicable financial information framework and therefore have neither been audited

nor are capable of being completely audited. These APMs and Non-IFRS Measures are been used to allow for a better understanding of the financial performance of

the Santander Group but should be considered only as additional information and in no case as a replacement of the financial information prepared under IFRS.

Moreover, the way the Santander Group defines and calculates these APMs and Non-IFRS Measures may differ to the way these are calculated by other companies

that use similar measures, and therefore they may not be comparable. For further details on the APMs and Non-IFRS Measures used, including its definition or a

reconciliation between any applicable management indicators and the financial data presented in the consolidated financial statements prepared under IFR, see

Section 26 of the Documento de Registro de Acciones for Banco Santander filed with the CNMV on July 4, 2017 (available on the Web page of the CNMV -

www.cnmv.es- and at Banco Santander -www.santander.com) and Item 3A of the Annual Report on Form 20-F for the year ended December 31, 2016, filed with the

U.S. Securities and Exchange Commission on March 31, 2017 (the “Form 20-F”). For a discussion of the accounting principles used in translation of foreign currency-

denominated assets and liabilities to euros, see note 2(a) to our consolidated financial statements on Form 20-F and to our consolidated financial statements available

on the CNMV’s website (www.cnmv.es) and on Banco Santander’s website (www.santander.com).

Thank you

Our purpose is to help people and

businesses prosper.

Our culture is based on the belief that

everything we do should be