1 1

26 July 2012

2 2

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, macro-economic, 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 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.

3 3

Agenda

■ Group performance H1'12

— Highlights

— Results

■ Business areas performance H1'12

■ Conclusions

■ Appendix

4 4 H1'12 Highlights

(*) Loan-to-deposit ratio R.D.L.: Royal Decree Law 2/2012 and 18/2012

Effort in real estate provisions in Spain

2

Solid profit generation

1

Pre-provision profit:

EUR 12,503 mill.; +6%

Meeting capital requirements

3

EBA >9%

Core Capital (BIS II) >10%

Liquidity. Focus on deposits in Spain

4

LDR Group* <120%

Commercial Gap Spain: -EUR 10 bn. in H1'12

In Q2'12: EUR 2,780 mill.

Reached >70% R.D.L.

H1'12 recurring attributable profit: EUR 3,008 mill. Attributable profit after provisions: EUR 1,704 mill.

5 5

Pre-provision profit

EUR billion

Solid pre-provision profit, growing over previous semesters …

EUR billion

Pre-provision profit

+10%

+6% +2% in constant euros

Solid profit generation 1

H1'11 H2'11 H1'12

11.8 11.3

12.5

Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12

5.8 6.1

5.8 5.5

6.3 6.2

6 6 Solid profit generation

… fuelled by higher revenues and costs under control

1

Group's revenues

EUR billion

Group's expenses

EUR billion

H1'11 H2'11 H1'12

21.4 21.4

22.5

H1'11 H2'11 H1'12

9.6 10.0 10.0

+6%

+0%

7 7

Effort in real estate provisions in Spain, against capital gains and ordinary profit

Effort in provisions 2

1,923

619

(*) Not including capital gains from Insurance disposal agreement, to be recorded in Q3'12: EUR 490 mill.

Impact on

attributable profit

of - EUR 1,304 mill.

EUR million

Capital gains net of tax

Provisions net of tax

Against capital gains* EUR 884 mill.

Against

ordinary profit EUR 1,896 mill.

EUR 2,780 million

Provisions in Q2'12 before tax:

8 8

1,404

2,023

100

+619

-1,923

Provisions net of tax

Accounting attributable

profit Q2'12

Capital gains* net of tax

Ordinary attributable

profit Q2'12

TOTAL

(*) Not including capital gains from Insurance disposal agreement , to be recorded in Q3'12: EUR 490 mill.

EUR million

Impact on Q2'12 attributable profit

H1'11 H2'11 H1'12

3,501

1,850 1,704

*

Accounting attributable profit

The provisions made left the accounting attributable profit for the quarter at "almost zero"

EUR million

Effort in provisions 2

9 9

These provisions were absorbed while maintaining our capital strength

Balance sheet strength: Capital 3

Note: Dec’06 and Dec’07 according to BIS I

Dec'06 Dec'07 Dec'08 Dec'09 Dec'10 Dec'11 Jun'12

5.9% 6.3%

7.6%

8.6% 8.8%

10.0% 10.1%

… surpassing the

minimum 9% ratio

required by EBA

Core capital (BIS II) above 10% …

10 10

This strength is reflected in markets where bank bailouts are being carried out

(1) Source: European Commission. Including capital injections, repurchase of assets and guaranties on deposits (2008-2010)

Portugal

Troika's requirement: CT1 of 10% in 2012

All peers needed capital

Santander Totta:

Didn't need public capital injections …

… CT1 of 11.4% at June 2012

Balance sheet strength: Capital 3

CGD BCP BPI BES

0.50

0.20 1.65

3.00

1.30 1.00

Capital increases (EUR billion)

Shareholders

Cocos (BSSF)

Government

United Kingdom

Total bailout1: EUR 295 billion

Accounting for 19% of the UK's GDP

Santander UK:

Didn't need public capital injections:

CT1 of 12.1% at June 2012

Furthermore, it participated in the

system's restructuring process

(A&L, B&B, RBS companies)

11 11

This strength is reflected in markets where bank bailouts are being carried out

Spain

Real Year-to-date 2007 - 2011

-2.3%

-24.4%

-39.4%

-43.5%

GDP

Unemployment

Housing2 prices

Land2 prices

Stock market

Adverse scenario

2012 - 2014

-6.4%

-25%

-61%

-54%

+14.5 pp +2.1 pp

(1) Established under an Advisory Panel participated, among others, by the ECB, IMF, European Commission and EBA

(2) Change in prices in real terms

Assistance and Recapitalization Programme for the sector

Core Tier 1 in Spain (Jun'12): 10.2%

In a very severe external1 stress-test, coupled with the sharp adjustment already made between 2007-2011…

… Santander won't need capital:

In the most adverse top-down

scenario, the Group will keep a

ratio ≥ 9%

Ratifies the IMF stress-test

conclusions

Would be in the Memorandum of

Understanding's Group 0 banks:

those with no capital shortfall

Balance sheet strength: Capital 3

12 12 Balance sheet strength: Liquidity

(1) Including retail commercial paper (2) Placed in the market and including structured financing

In a highly demanding scenario, the Group maintains a solid liquidity position due to …

… deleveraging in Spain and Portugal

Loans Deposits

-5

+7

Var. Jun'12/Dec'11 in EUR billion

1

9.4 16.0

10.0 16.6

26.0

… the Group's high issuing capacity

H1'12. EUR billion

M/L term issues

Q1’12 Total2

Securitisations2

Q2’12

Loan-to-deposit ratio1. Total Group

D'08 D'09 D'10 D'11 Jn'12

150% 135%

117% 117% 117%

Deposits1 + M/L term financing / loans

D'08 D'09 D'10 D'11 Jn'12

104% 106%

115% 113% 115%

4

bn.

bn.

Gap reduction: -12 bn.

13 13

2.9

3.4

5.9

3.9

4.5 4.5

4.9

3.5 3.8

5.4

4.0

4.9 5.0 5.2

Dec'07 Dec'08 Dec'09 Dec'10 Dec'11 Mar'12 May'12

Data in local criteria. Latest available data for the sector by central banks and Council Mortgage Lenders (UK)

0.64 1.95

3.41 4.24

5.15 5.49 5.75 5.98

0.92

3.37

5.08 5.81

7.16 7.84

8.37 8.95

Dec'07 Dec'08 Dec'09 Dec'10 Sep'11 Dec'11 Mar'12 Jun'12

1.6 2.1

2.7 2.6 2.5 2.3

2.3

3.2

4.6

3.6 3.1 3.2

Dec'07 Dec'08 Dec'09 Dec'10 Dec'11 Mar'12

Santander

Private Banks

Our ratios still compare very well in the main markets where we operate

4

Spain United Kindgom

Brazil Latin America ex-Brazil

%

% %

% (May)

Balance sheet strength: Non-performing loans ratio

0.66 1.03

1.41 1.41 1.46 1.50

1.08

1.88 2.40 2.16 2.00 1.96

Dec'07 Dec'08 Dec'09 Dec'10 Dec'11 Mar'12

14 14

3.55 3.61 3.78 3.86 3.89 3.98 4.11

Dec'10 Mar'11 Jun'11 Sep'11 Dec'11 Mar'12 Jun'12

The Group's NPLs continue sliding upwards because of Spain and Brazil. The US and SCF improved and the UK and Latam ex-Brazil remained stable

%

United Kingdom and USA

% UK USA

Latin America

% Brazil Latam ex-Brazil

Continental Europe

% Spain SCF

4

Group's Total

Balance sheet strength: Non-performing loans ratio

4.24 4.57 4.81

5.15 5.49

5.75 5.98

D'10 M'11 J'11 S'11 D'11 M'12 J'12

5.25 4.99 4.74 4.50

3.97 4.05 3.88

D'10 M'11 J'11 S'11 D'11 M'12 J'12

1.74 1.73 1.81 1.86 1.84 1.82 1.83

D'10 M'11 J'11 S'11 D'11 M'12 J'12

4.61

4.15 3.76

3.22 2.85

2.46 2.27

D'10 M'11 J'11 S'11 D'11 M'12 J'12

4.91 4.85 5.05 5.05 5.38

5.76

6.51

D'10 M'11 J'11 S'11 D'11 M'12 J'12

3.07 2.94 3.08 2.91 2.89 3.24 3.41

D'10 M'11 J'11 S'11 D'11 M'12 J'12

15 15

73 71 69 66 61 62 65

Dec'10 Mar'11 Jun'11 Sep'11 Dec'11 Mar'12 Jun'12

%

United Kingdom and USA

% UK USA

Latin America

% Brazil Latam ex-Brazil

Continental Europe

% Spain SCF

Group's Total

4

Increased coverage in Spain rose the Group's coverage ratio to 65%. Also improvement in the quarter in SCF and Sovereign

Balance sheet strength: Coverage

48 47 43 42 40 40 40

D'10 M'11 J'11 S'11 D'11 M'12 J'12

75 82 85

93 96

107 113

D'10 M'11 J'11 S'11 D'11 M'12 J'12

101 104 102 100 95 90 90

D'10 M'11 J'11 S'11 D'11 M'12 J'12

110 114 110 109 102

95 88

D'10 M'11 J'11 S'11 D'11 M'12 J'12

58 53 49 46 45 46 53

D'10 M'11 J'11 S'11 D'11 M'12 J'12

101 98

103 105 109 108

111

D'10 M'11 J'11 S'11 D'11 M'12 J'12

16 16

■ Group performance H1'12

— Highlights

— Results

■ Business areas performance H1'12

■ Conclusions

■ Appendix

Agenda

17 17

The results showed a 5.5% increase in pre-provision profit and the impact of the effort made in provisions

Gross income 22,544 +1,141 +5.3 +5.9

Operating expenses -10,041 -484 +5.1 +4.1

Net operating income 12,503 +657 +5.5 +7.3

Loan-loss provisions -6,540 -1,928 +41.8 +44.2

Other results -1,123 +900 -44.5 -43.8

Profit before tax 4,839 -372 -7.1 -5.5

Tax and minority interests -1,828 -124 +7.3 +0.7

Profit before real estate provisions 3,008 -493 -14.1 -8.5

Net capital gains and real estate provisions -1,304 -1,304 n.m. n.m.

Accounting attributable profit 1,704 -1,797 -51.3 -45.7

Grupo Santander Results. H1'12 vs. H1'11

Var. / H1'11 % excl. fx EUR Mill. H1'12 Amount % and perimeter

18 18 Gross income

Sustained growth of basic revenues as the main driver of profits

1

Group's gross income

Constant EUR million

(1) Basic revenues: Net interest income + fee income + insurance activities (2) Trading gains + dividends + equity accounted income + other operating results

Basic revenues

Q2'12 / Q1'12:

+EUR 94 mill.; +1%

Continental Europe

UK

Latam +128

USA

+184

-110

-11

Q2'12 / Q1'12

Q1'11 Q2 Q3 Q4 Q1'12 Q2

9,513 9,942 9,955 10,143 10,346 10,440

10,368 10,952 10,753 10,835

11,210 11,333

Other2

Total

Basic revenues1

19 19

Q1'11 Q2 Q3 Q4 Q1'12 Q2

4,694 4,847 4,932 5,181

5,027 5,014

Expenses

Expenses growing at a slower pace

Group's expenses

Constant EUR million

2

Expenses

Q2'12 / Q1'12:

-EUR 13 mill.; -0.3%

Continental Europe

UK

Latam -3

USA

-10

+7

+13

Q2'12 / Q1'12

20 20

Q1'11 Q2 Q3 Q4 Q1'12 Q2

2,616 3,467

1,812

2,780

2,022

2,517 2,685

4,428

3,073

6,247

Provisions 3

Provisions

Constant EUR million

Net loan-loss provisions

Real estate provisions in Spain

Higher provisions in recent quarters mainly because of real estate provisions in Spain

Provisions

represent over 70%

of Royal Decree Laws*

(*) Including capital buffer

21 21

Total coverage

(problem loans + outstanding risk)

Dec'11 Jun'12 Jun'12*

22%

32%

39% provisions / exposure (%)

Coverage by borrowers' situation. June 2012

… expected* to

reach 50% once

R.D.L. are fully met

Risk Provisions Coverage

Non-performing 7,833 3,459 44%

Substandard2 2,557 1,074 42%

Foreclosed real estate 8,388 4,173 50%

Total problem loans 18,778 8,705 46%

Outstanding risk 9,484 249 3%

Real estate exposure 28,262 8,954 32%

Provisions 3

These provisions coupled with significant stock reduction, increased real estate coverage sharply in Spain1

(1) Including SAN Branch Network, Banesto, GBM Spain, Santander Consumer Spain and Banif (2) 100% are up-to-date with payments (*) Including capital buffer

EUR million

22 22

■ Group performance H1'12

— Highlights

— Results

■ Business areas performance H1'12

■ Conclusions

■ Appendix

Agenda

23 23

(1) Over operating areas attributable profit

Business areas H1'12

Attributable profit by geographic segment in H1'12(1)

High geographic diversification in profits generation

Poland, 4%

Brazil, 26%

Mexico, 12%

Chile, 6% Other LatAm, 6%

USA, 10%

UK, 13%

Other Europe, 2%

Germany, 5%

Spain, 14%

Portugal, 2%

24 24

Continental Europe H1'12

Recovery of revenues and profits in recent quarters. Year-on-year comparison affected by release of generic provisions in H1'11

Attributable profit: EUR 1,211 mill.

Var. H1'12 / H1'11

Basic revenues

Gross income

Expenses

Net operating income

Net op. income afterprovisions

Attributable profit

+5%

+5%

+3%

+6%

-23%

-23%

Attributable profit

EUR million

Basic revenues

EUR million

Q1'11 Q2 Q3 Q4 Q1'12 Q2

3,023 3,391 3,278 3,109 3,262 3,444

+2% +6% Excl.

perimeter

Q1'11 Q2 Q3 Q4 Q1'12 Q2

878

700

443

266

584 627

+1%

+1%

-2%

+3%

-27%

-28%

25 25

SAN Network

Banesto

Portugal

Continental Europe H1'12. Attributable profit by unit EUR million

SCF

Poland (BZ WBK)

Other global Europe

H1'11 H2 H1'12

500

159 247

H1'11 H2 H1'12

131

43 71

H1'11 H2 H1'12

369 297

382

Q2'11 H2 H1'12

94 139 157

H1'11 H2 H1'12

316

108

271

All units improved over H2'11

H1'11 H2 H1'12

168

-37

82

26 26 Santander Branch Network H1'12

Better liquidity position with improved revenues and profits trend in recent quarters

Activity

Net interest income return

Basic revenues

Attributable profit

EUR million

(1) Loan-to-Deposit Ratio (2) Including retail commercial paper

1.30% 1.36% 1.46%

3.04%

3.66% 3.74%

Q1'11 Q4'11 Q2'12

Return / Cost

Return

Cost2

Net interest inc. / ATAs

H1'11 H1'12

2.93% 3.40%

Balances (€ bn.) and LDR1 ratio

Q1'11 Q2 Q3 Q4 Q1'12 Q2

1,072 1,136 1,094 1,031 1,116 1,219

+7% +9%

Q1'11 Q2 Q3 Q4 Q1'12 Q2

274 226

101 58 75

173

EUR million

Loans Deposits

-5%

+15%

Var. Jun’12 / Jun’11

Volumes

Loans Dep. Loans Dep.

107 80

102 92

Jun'11 Jun'12

134%

111%

2 2

27 27 Banesto H1'12

Similar trends to those of Santander Branch Network: reduced commercial gap and recovery in revenues and profits

Activity

Net interest income return

Basic revenues

Attributable profit

EUR million

Q1'11 Q2 Q3 Q4 Q1'12 Q2

489 525 516 486 514 530

+1%

+3%

EUR million

Loans Deposits

-10%

-5%

Var. Jun12 / Jun’11

Volumes Balances (€ bn.) and LDR1 ratio

Loans Dep. Loans Dep.

72 54 65

51

Jun'11 Jun'12

133% 126%

(1) Loan-to-Deposit ratio (2) Including retail commercial paper (3) Retail Banking

2 2

Q1'11 Q2 Q3 Q4 Q1'12 Q2

101

67

22 -59

41 41 1.86% 1.70% 1.70%

3.04%

3.61% 3.70%

Q2'11 Q4'11 Q2'12H1'11 H1'12

2.43% 2.44%

Return / Cost

Return

Cost2

Net interest inc. / ATAs3

28 28 Spain1. Loans and Deposits

(1) Including Santander Branch Network, Banesto, GBM Spain, Santander Consumer Spain and Banif

(2) Including retail commercial paper

D'08 D'09 D'10 D'11 Jn'12

178%

149%

119% 118% 112%

Improved loan-to-deposit2 ratio

Appropiate loan-to-deposit structure

EUR billion

Reduced commercial gap in 2012

Var. Jun'12/Dec'11 in EUR bn.

Loans Deposits

-4

+6

2

bn.

bn.

In short, in a deleveraging market, improvement of commercial gap, gaining market share in deposits (approx. +80 b.p. in 2012)

Gross loans Deposits

20

82

104

95 18

10 57

18

217

187

TOTAL

Demand deposits

Time deposits / other

Retail commercial paper

TOTAL

Companies w/o real estate

purposes

Real estate purpose

Household mortgages

Public sector

Other loans to individuals

Gap reduction: -10 bn.

29 29

Spain1. Customer lending and NPLs

Gross loans

EUR billion

NPL ratio

%

Sharp drop in loans with real estate purposes and deleveraging in individuals. Total NPLs increased because of real estate. Rest of portfolio stable

(1) Including SAN Branch Network, Banesto, GBM Spain, Santander Consumer Spain and Banif (2) Quarter's increase arising from the government's plan for payment to suppliers of regional

and local governments: EUR 4,000 million

Dec'10 Dec'11 Mar'12 Jun'12

27 23 22 20

105 105 105 104

24 20 19 18

61 59 57 57

12 12 13 18

230 219 215 217

TOTAL

-14% -8%

12M 3M

-8%

3M

Companies w/o real estate purposes

Real estate purpose

Household mortgages

Public sector2

Other loans to individuals

4.2

5.5 5.7 6.0

2.9 3.3 3.4 3.3

17.0

28.6

32.8

39.4

Dec'10 Dec'11 Mar'12 Jun'12

Total

Total w/o real estate purpose

Rest of portfolio

Home mortgages

2.2 2.7 2.6 2.5

3.1 3.5 3.6 3.5

With real estate purpose

30 30 Spain1. Evolution of NPLs other than real estate

In recent quarters, NPLs entries stable in individual customers and moderate growth in those to companies

100

131 132

81 60

48 46 44 45

H1'08 H2'08 H1'09 H2'09 H1'10 H2'10 H1'11 H2'11 H1'12

100

207 235

144

228 227 254 310 308

H1'08 H2'08 H1'09 H2'09 H1'10 H2'10 H1'11 H2'11 H1'12

100

163 157

101 76 67 62 56 56

H1'08 H2'08 H1'09 H2'09 H1'10 H2'10 H1'11 H2'11 H1'12

100

152 166

96 100 89

107 105 103

H1'08 H2'08 H1'09 H2'09 H1'10 H2'10 H1'11 H2'11 H1'12

(1) Data Santander Branch Network + Banesto. Gross entries of NPL > 90 days past-due

Individuals-mortgages: NPL entries >90 days

H1'2008=100

Companies: NPL entries >90 days

H1'2008=100

Individuals-consumer: NPL entries >90 days

H1'2008=100 H1'2008=100

Individuals-cards: NPL entries >90 days

31 31

EUR billion

Dec'08 Dec'11 Mar'12 Jun'12

37.7

23.4 21.5 19.9

4.8

8.6 8.6

8.4

42.5

32.0 30.1

28.3

Loans

Foreclosed

real estate

-EUR 14,200 mill.

Real estate exposure has been reduced by 33% since the onset of the crisis …

Spain1. Evolution of real estate exposure

Total real estate exposure

(1) Including Santander Branch Network, Banesto, GBM Spain, Santander Consumer Spain and Banif

32 32

Q1'11 Q2 Q3 Q4 Q1'12 Q2

+373 +453

+225

-7 +37

-202

The change of trend in foreclosed real estate was consolidated, registering a reduction of stock in the quarter

Dec'08 Dec'09 Dec'10 Dec'11 Mar'12 Jun'12

4,765

6,521

7,509

8,552 8,590 8,388

Quarterly evolution 2011 and 2012

EUR million

Spain1. Evolution of foreclosed real estate

Gross amount (EUR million )

33 33

Portugal H1'12

SantanderTotta continued its deleveraging, with revenues recovering and stable profit in recent quarters

EUR million

Q1'11 Q2 Q3 Q4 Q1'12 Q2

273 242 225 219 246 258

+6%

+5%

Attributable profit

Q1'11 Q2 Q3 Q4 Q1'12 Q2

90

41

-2

45 33 38

EUR million

Basic revenues

Activity

Net interest income return

1.58%

2.51% 2.37%

3.30%

3.98% 3.68%

Q1'11 Q4'11 Q2'12

Return / Cost

Return

Cost

Loans Deposits

-7%

+7%

Var. Jun12 / Jun’11

Volumes

H1'11 H1'12

1.36% 1.36%

Loans Dep. Loans Dep.

29 22

27 24

Jun'11 Jun'12

131% 115%

Balances (€ bn.) and LDR1 ratio

Net interest inc. / ATAs

34 34 Santander Consumer Finance Continental Europe H1'12

High recurring profit fuelled by solid revenues and less provisions needs

Activity

Net interest income / Provisions (% /ATAs)

1.17% 1.02%

3.51% 3.25%

H1'11 H1'12

Provisions

Net interest income

2.34 2.23

Var. Jun'12 / Jun'11

Volumes

Basic revenues

EUR million

Q1'11 Q2 Q3 Q4 Q1'12 Q2

792 828 825 777 815 778

-6%

-4%

Attributable profit*

Q1'11 Q2 Q3 Q4 Q1'12 Q2

183 186 201

96

206 176

EUR million

* Excluding Santander Consumer UK's profit as it is recorded in Santander UK. Including it, H1'12 attributable profit was EUR 426 mill.

Loans Deposits

-0.4%

+0.3%

New loans

% H1’12 / H1’11

Gross loans: EUR 59 bn.

%

Germany

Nordic countries

Poland Other

Italy

Spain

51

13

12

12

5 7

Germany

Nordic countries

Poland

Spain

Italy

Other

+10%

+9%

+7%

+3%

-23%

-6%

35 35

Basic revenues

Gross income

Expenses

Net operating income

Net op. income after provisions

Attributable profit

+4%

+5%

0%

+10%

+8%

+14%

Loans and deposits growth produced continuous revenues increase and good profit performance

Attributable profit H1'12: EUR 157 mill.

Var. H1'12 / H2'11 in constant2 euros

Activity1

NII / Provisions (/ATAs)

Loans Deposits

+13%

+8%

Volumes

3.41% 3.70%

0.44% 0.74%

Q2'11 H1'12

Provisions

Net interest income

2.96 2.97

Attributable profit

Constant EUR million

Basic revenues

Constant EUR million

Q2'11 Q3 Q4 Q1'12 Q2

196 198 206 206 214

+9%

+4%

Poland (BZ WBK) H1'12

Q2'11 Q3 Q4 Q1'12 Q2

87 76 62 72 84

(1) Local currency

(2) Comparison with H2'11, as it is the first full six months consolidated into the Group

Var. Jun'12 / Jun'11

36 36

United Kingdom H1'12

Results affected by environment of reduced activity, very low interest rates and higher cost due to improved funding structure

Attributable profit: £ 466 mill. (EUR 566 mill.)

Var. H1'12 / H1'11 in £

Gross income

Expenses

Net operating income

Net op. income after prov.

Attributable profit

-17%

0%

-29%

-44%

+41%

Basic revenues

Q1'11 Q2 Q3 Q4 Q1'12 Q2

1,183 1,202 1,175 1,154 1,044 954

-21% -9%

Attributable profit

£ million

Q1'11 Q2* Q3 Q4 Q1'12 Q2

431

-101

375 355 255 210

Activity1

Volumes

Mortgages Companies Deposits

171

31

149

Balances and Var. Jun’12 /Jun’11

(1) Local criteria. Balances in sterling billion

(2) Excluding GBM balances and other deposits for sterling 21 bn. at June 2012

+12% -1% -3%

SMEs +18%

2

(*) Impact from PPI fund

Return / Cost

3.96% 3.89%

1.88% 2.11%

H1'11 H1'12

£ million

Return

Cost

37 37

Brazil H1'12

Excellent track record in revenues and expenses decelerating. In profit, impact from larger provisions and minority interests

Attributable profit: US$ 1,493 mill. (EUR 1,152 million )

Var. H1'12 / H1'11 in constant US$

(1) Local currency (2) Excluding Repos. Including «letras financieras»

Activity1

NII / Provisions (/ATAs)

Loans Deposits

+18%

+6%

Var. Jun’12 / Jun’11

Volumes

2.86% 4.09%

7.28% 8.48%

H1'11 H1'12

Provisions

Net interest income

4.39 4.42

Basic revenues

Gross income

Expenses

Net operating income

Net op. income after prov.

Attributable profit

+16%

+16%

+7%

+20%

-3%

-12%

Attributable profit

Constant US$ million

Q1'11 Q2 Q3 Q4 Q1'12 Q2

898 801 735 830 806 686

183 162 138

172 224 203

1,080 964 873

1,002 1,030 889

Net profit

Attributable profit

Minority interests

Basic revenues

Constant US$ million

Q1'11 Q2 Q3 Q4 Q1'12 Q2

4,563 4,665 4,738 5,083 5,262

5,468

+17%

+4%

+16%

+16% +7% +21%

-2%

-4%

Excl. perimeter

2

38 38 Mexico H1'12

Profit growth spurred by strong basic revenues (activity at double-digit growth) and moderate expenses and provisions

(1) Local currency (2) Excluding Repos

Attributable profit: US$ 721 mill. (EUR 556 mill.)

Activity1

NII / Provisions (/ATAs) Volumes

Loans Deposits

+15% +19%

0.74% 0.73%

3.80% 3.91%

H1'11 H1'12

Provisions

Net interest income

3.18 3.06

Basic revenues

Gross income

Expenses

Net operating income

Net op. income afterprovisions

Attributable profit

+20%

+11%

+9%

+12%

+11%

+18%

Var. H1'12 / H1'11 in constant US$

Basic revenues

Constant US$ million

Q1'11 Q2 Q3 Q4 Q1'12 Q2

697 708 765 781 843 844

+19%

0%

Attributable profit

Q1'11 Q2 Q3 Q4 Q1'12 Q2

319 294 321 285

380 341

Constant US$ million

Excl. perimeter

+20%

+12% +9%

+14%

+13%

+20%

2

Var. Jun’12 / Jun’11

39 39

Chile H1'12

In activity, focus on return and customers' deposits. In results, recovery of revenues, stabilization of provisions and perimeter impact

(1) Local currency (2) Excluding Repos

Attributable profit: US$ 337 mill. (EUR 260 mill.)

Activity1

NII / Provisions (/ATAs)

Loans Deposits

+6%

+15%

Volumes

0.84% 1.21%

3.90% 4.16%

H1'11 H1'12

Provisions

Net interest income

2.95 3.06

Basic revenues

Gross income

Expenses

Net operating inc.

Net op. income afterprovisions

Attributable profit

+6%

+3%

+8%

0%

-15%

-29%

Var. H1'12 / H1'11 in constant US$

Basic revenues

Constant US$ million

Q1'11 Q2 Q3 Q4 Q1'12 Q2

626 682 633 705 706 681

0%

-4%

Attributable profit

Constant US$ million

Excl. perimeter

+6%

+5%

+8%

+2%

-12%

-14% Q1'11 Q2 Q3 Q4 Q1'12 Q2

217 255 159

202 173 164

60 74

45

76 77 74

277

329

204

279 249 238

2

Net profit

Attributable profit

Minority interests

Var. Jun’12 / Jun’11

40 40

Latin America ex-Brazil

Attributable profit. Constant US$ million

Generalised growth in other countries in the region, mainly spurred by basic revenues

Argentina

H1'11 H1'12

179 191

+7%

Peru

H1'11 H1'12

7 10

+31%

Uruguay

H1'11 H1'12

14 31

+129%

Puerto Rico

H1'11 H1'12

23 31

+35%

BPI*

H1'11 H1'12

91 93

+2%

(*) International Private Banking

41 41

United States H1'12

Santander US includes Sovereign Bank and the contribution by the equity accounted method of SCUSA. Profit of US$ 591 mill. (EUR 456 mill.)

(1) Local currency

SCUSA activity1

Sovereign Bank activity1

NII / Provisions (/ATAs)

Loans Deposits

+6%

+2%

Volumes

0.94% 0.49%

3.29% 2.78%

H1'11 H1'12

Provisions

Net interest income

2.29

2.35

Var. Jun’12 / Jun’11

SCUSA contribution to profit

Quarterly profit – Sovereign Bank

US$ million

Q1'11 Q2 Q3 Q4 Q1'12 Q2

176 183 195 177 191 171

Jun'11 Jun'12

15.0 17.4

New loans Gross loans

+16%

2011quarterly avg.

Q1'12 Q2'12

1.4

1.8

2.3

US$ billion US$ billion

Q1'11 Q2 Q3 Q4 Q1'12 Q2

156 107 106 112 124 105

240

164 163 172 191 162

US$ million Provisions release: US$ 77 million

SCUSA Profit

Contribution to SAN

Constant perimeter Change of perimeter Minority interests

42 42

43 43

EUR Mill. Main effects:

Net interest income -3

Trading gains +170

Other results and taxes -200

Impact on profit: -33

Net capital gains and real estate provisions -1,304

Total impact on profit: -1,337

Corporate Activities

Similar losses to those of H1'11 before real estate provisions

Attributable profit

(Change H1'12 vs. H1'11)

44 44

■ Group performance H1'12

— Highlights

— Results

■ Business areas performance H1'12

■ Conclusions

■ Appendix

Agenda

45 45 2012 Outlook

Spain and Portugal

Continue strengthening the balance sheet

Exploit peers restructuring to gain profitable market share

Latin America Brazil and Chile: maintain revenues growth while stabilising

provisions

Mexico: strengthen the franchise gaining profitable market share

UK Finish absorbing impacts (low interest rates, liquidity …)

Continue improving customer base (individuals and companies)

USA After IT implementation, development of commercial businesses and

new products

Other Europe SCF: maintain recurring profits backed by its business model

Poland: continue delivering results while merging with Kredyt Bank

In the coming quarters our management will continue to be focused on each market's situation …

46 46

■ Group performance H1'12

— Highlights

— Results

■ Business areas performance H1'12

■ Conclusions

■ Appendix

Agenda

47 47

Group's balance sheet

48 48

Main trends of the Group’s balance sheet

Retail balance sheet, appropriate for the business nature of low risk, liquid and well capitalised

(*) Other assets: Goodwill EUR 25 bn., tangible and intangible assets 16 bn., other capital instruments at fair value 1 bn., accruals and other accounts 54 bn.

(**) Including retail commercial paper

Balance sheet at June 2012 Lending: 59% of balance sheet

Derivatives (with counterpart on the liabilities side): 10% of balance sheet

Cash, Central Banks and credit institutions: 14%

Other (goodwill, fixed assets, accruals): 7%

Available for sale portfolio (AFS):6%

Trading portfolio: 4%

1

3

2

4

5

6

Assets Liabilities

766

97

96

221

53

654

81 34

122 129

175 158

1,293 1,293

EUR billion

1

6

5

4

3

2

Loans to

customers

Derivatives

Cash and credit institutions

Other*

AFS Portfolio

Trading portfolio

Customer Deposits**

Issues and subordinated

liabilities

Shareholders’ equity & fixed liabilities

Credit institutions

Other

Derivatives

49 49

Secondary segments results

50 50

Basic revenues

Gross income

Expenses

Net operating inc.

Net op. income afterprovisions

Attributable profit

+7%

+5%

+6%

+5%

-19%

-10%

Retail Banking The positive evolution of basic revenues is not feeding through to profit

because of larger provisions and minority interests

Attributable profit: EUR 3,267 mill.

Var. H1'12 / H1'11

Activity

(1) Net interest income + fee income + Insurance activity (2) Including retail commercial paper and "letras financieras"

Basic revenues1

EUR million

+4%

-1%

Attributable profit

Q1'11 Q2 Q3 Q4 Q1'12 Q2

2,187

1,427 1,727 1,570 1,647 1,619

EUR million

EUR billion

Deposits2 Loans

Jun'11 Jun'12

631

684

Jun'11 Jun'12

521

578

+8% +10%

Q1'11 Q2 Q3 Q4 Q1'12 Q2

9,086 9,430 9,438 9,443 9,913 9,813

51 51 Santander Consumer Finance Total. H1'12

Aggregates the Continental Europe, United Kingdom and USA units

Basic data

Total portfolio2 (Jun.’12): EUR 77 bill.

Attributable profit H1’12: EUR 602 mill.

ContinentalEurope

United Kingdom

USA

59

4

14

ContinentalEurope

United Kingdom

USA

382

43

177

77,262

15.4

135,500

14

37

Top 31 in 10 countries

32,702

1,228

EUR million

EUR million

Million customers

Million euros in loans2

Dealers-participants

Countries

Agreements with manufacturers

for captive financing

Million euros in deposits

Million euros in attributable profit

for 2011

Note: basic data as of December except business volumes (March 2012)

(1) Market share of new car financing loans

(2) Gross loan portfolio under management

52 52

Q1'11 Q2 Q3 Q4 Q1'12 Q2

1,125 1,043 997 842

1,214 1,022

197 140 81

183

195

130

1,322 1,183

1,078 1,025

1,409

1,152

Global Wholesale Banking (GBM)

Solid growth in an environment of volatile markets, underpinned by transactional and credit business

Gross income

EUR million -3%

Gross income

EUR million

Attributable profit

Q1'11 Q2 Q3 Q4 Q1'12 Q2

636

435 372 397

602

415

-2%

EUR million

783 854

63 28

399 451

665 678

258 225

337 325

H1'11 H1'12

+2%

+2%

+9%

Customer revenues

-13%

-3%

+13%

Total

Trading

Customers

2,505 2,561

-56%

TOTAL

Trading & capital

Rates

Transactional Banking

Credit

Equities

Corporate finance

53 53

Q1'11 Q2 Q3 Q4 Q1'12 Q2

120 129

88 97 98 92

Q1'11 Q2 Q3 Q4 Q1'12 Q2

243 250 234 231 229 218

Asset Management and Insurance High contribution to the Group via revenues and profits:

9% of the operating areas total revenues

Total revenues. Contribution to the Group

EUR million

Attributable profit

Gross income

EUR million

H1'11 H1'12

2,207 2,074

H1'11 H1'12

661 612

H1'11 H1'12

1,545 1,461

-6%

EUR million

-5%

-7%

Insurance Asset

Management

54 54

Main units spreads and NPL ratios

55 55

1.90 1.97 2.03 2.01 2.19 2.42

0.05 0.56 0.65 0.53 0.51 0.45

1.95 2.53 2.68 2.54 2.70 2.87

Q1'11 Q2 Q3 Q4 Q1'12 Q2

Loans Deposits Total

2.03

2.08 2.12 2.16 2.33 2.31

-0.36 0.12 0.42 0.36 0.41 0.18

1.67

2.20 2.54 2.52 2.74

2.49

Q1'11 Q2 Q3 Q4 Q1'12 Q2

Loans Deposits Total

1.96

2.06 2.15 2.23 2.34 2.39

0.12 -0.31 -0.47 -0.78 -0.91 -0.96

2.08

1.75 1.68 1.45 1.43 1.43

Q1'11 Q2 Q3 Q4 Q1'12 Q2

Loans Deposits Total

4.83 4.43 4.48 4.57 4.51 4.57

Q1'11 Q2 Q3 Q4 Q1'12 Q2

Loans

Continental Europe. Main units spreads (%)

SAN Branch Network Banesto Retail Banking

Santander Consumer Lending Portugal Retail Banking

56 56

4.68% 5.08% 5.63% 5.99% 6.33% 6.59%

49% 44% 39% 39% 41% 55%

Mar'11 Jun Sep Dec Mar'12 Jun

NPL Coverage

3.03% 3.25% 3.78% 4.06% 4.59% 5.42%

62% 62% 53% 55% 58% 53%

Mar'11 Jun Sep Dec Mar'12 Jun

NPL Coverage

4.99% 4.74% 4.50% 3.97% 4.05% 3.88%

98% 103% 105% 109% 108% 111%

Mar'11 Jun Sep Dec Mar'12 Jun

NPL Coverage

4.31% 4.54% 4.69% 5.01% 5.07% 5.27%

52% 52% 53% 53% 51% 54%

Mar'11 Jun Sep Dec Mar'12 Jun

NPL Coverage

Continental Europe. NPL and coverage ratios

Banco Santander1 Banesto

Santander Consumer Portugal

(1) Santander Branch Network's NPL ratio was 9.16% and coverage ratio 49% as of Jun'12

57 57

LOANS with real estate purpose Foreclosed REAL ESTATE

EUR Million

Jun’12 Dec’11 Var.

EUR Million

Gross amount

Coverage Net amount

Loans with real estate purpose and foreclosed real estate in Spain

Finished buildings 9,123 10,154 -1,031

Buildings under constr. 1,642 1,985 -343

Developed land 3,432 3,994 -562

Building and other land 2,439 2,572 -133

Non mortgage guarantee 3,238 4,737 -1,499

Total 19,874 23,442 -3,568

Finished buildings 3,200 35% 2,084

Buildings under constr. 568 50% 284

Developed land 2,766 60% 1,107

Building land 1,652 60% 661

Other land 203 60% 81

Sub Total 8,388 50% 4,216

58 58

2.40 2.40 2.46 2.53 2.57 2.61

-0.32 -0.40 -0.45 -0.50 -0.59 -0.76

2.08 2.00 2.01 2.03 1.98 1.85

Q1'11 Q2 Q3 Q4 Q1'12 Q2

Loans Deposits Total

1.73% 1.81% 1.86% 1.84% 1.82% 1.83%

47% 43% 42% 40% 40% 40%

Mar'11 Jun Sep Dec Mar'12 Jun

NPL Coverage

United Kingdom. Spreads and NPL ratios (%)

Spreads Retail Banking NPL and coverage

59 59

14.72 15.05 14.23 14.44 14.44 14.84

1.12 1.12 1.18 1.00 0.73 0.65

15.84 16.17 15.41 15.44 15.17 15.49

Q1'11 Q2 Q3 Q4 Q1'12 Q2

Loans Deposits Total

8.58 8.40 8.27 8.36 8.69 8.81

2.09 2.04 1.99 1.96 1.96 1.92

10.67 10.44 10.26 10.32 10.65 10.73

Q1'11 Q2 Q3 Q4 Q1'12 Q2

Loans Deposits Total

4.38 4.14 4.18 4.35 4.56 4.62

3.09 2.90 2.65 2.52 2.45 2.36

7.47 7.04 6.83 6.87 7.01 6.98

Q1'11 Q2 Q3 Q4 Q1'12 Q2

Loans Deposits Total

Spreads main countries Latin America (%)

Retail Banking Brazil Retail Banking Mexico

Retail Banking Chile

60 60

(1) GE entry in June 2011.

4.85% 5.05% 5.05% 5.38% 5.76%

6.51%

104% 102% 100% 95% 90% 90%

Mar'11 Jun Sep Dec Mar'12 Jun

NPL Coverage

Chile

1.58% 2.45%

1.78% 1.82% 1.61% 1.64%

234%

165% 176% 176% 195% 183%

Mar'11 Jun Sep Dec Mar'12 Jun

NPL Coverage

3.80% 3.65% 3.63% 3.85% 4.52% 4.65%

89% 89% 88% 73% 68% 64%

Mar'11 Jun Sep Dec Mar'12 Jun

NPL Coverage

Latin America. NPLs and coverage ratios

Brazil Mexico1

61 61

4.15% 3.76% 3.22% 2.85% 2.46% 2.27%

82% 85% 93% 96%

107% 113%

Mar'11 Jun Sep Dec Mar'12 Jun

NPL Coverage

Sovereign. Spreads and NPL and coverage ratios (%)

Spreads Retail Banking NPLs and coverage

2.16 2.24 2.22 2.29 2.36 2.45

0.78 0.66 0.40 0.46 0.46 0.41

2.94 2.90 2.62 2.75 2.82 2.86

Q1'11 Q2 Q3 Q4 Q1'12 Q2

Inversión Depósitos Suma

62 62