SNUS-PH 8-K
Santander Holdings USA, Inc. (SNUS-PH)
8-K
2025-05-02
For: 2025-05-02
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August 21, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 2, 2025
(Exact name of registrant as specified in its charter)
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Registrant's telephone number, including area code: (800 ) 493-8219
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act (17 CFR 230.405) or Rule 12b-2 of the Exchange Act (17 CFR 240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐
Item 2.02 Results of Operations and Financial Condition
Item 7.01 Regulation FD Disclosure
Santander Holdings USA, Inc. (the “Company”) is furnishing copies of slides which will be used in connection with presentations on one or more occasions. The presentation materials are attached hereto as Exhibit 99.1 and incorporated herein solely for purposes of Items 2.02 and 7.01.
The information contained in the attached presentation materials is summary information that is intended to be considered in the context of the Company’s Securities and Exchange Commission filings and other public announcements. The Company undertakes no duty or obligation to publicly update or revise this information, although it may do so from time to time.
The information in Items 2.02 and 7.01 of this Current Report on Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities under that Section. Further, the information in Items 2.02 and 7.01 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933. Item 7.01 of this Current Report on Form 8-K will not be deemed an admission as to the materiality of any information in this Current Report on Form 8-K that is required to be disclosed solely by Regulation FD.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit No. | Description | |||||||
| 99.1 | ||||||||
| 104 | Cover page formatted as Inline XBRL and contained in Exhibit 101 | |||||||
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 hereunto duly authorized.
Dated: | SANTANDER HOLDINGS USA, INC. By:/s/ Gerard A. Chamberlain Name: Gerard A. Chamberlain Title: Senior Deputy General Counsel and Executive Vice President | ||||
1 May 2, 2025 SANTANDER HOLDINGS USA, INC. First Quarter 2025 Fixed Income Investor Presentation
2 This presentation of Santander Holdings USA, Inc. (“SHUSA”) contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the financial condition, results of operations, business plans and future performance of SHUSA. Words such as “may,” “could,” “should,” “will,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “goal” or similar expressions are intended to indicate forward-looking statements. Although SHUSA believes that the expectations reflected in these forward-looking statements are reasonable as of the date on which the statements are made, factors such as the risks and uncertainties described in SHUSA’s filings with the Securities and Exchange Commission from time to time may cause SHUSA’s performance to differ materially from that suggested by the forward-looking statements. If one or more of the factors affecting SHUSA’s forward-looking statements renders those statements incorrect, SHUSA’s actual results, performance or achievements could differ materially from those expressed in or implied by the forward-looking statements. Readers should not consider these factors to be a complete set of all potential risks or uncertainties as new factors emerge from time to time. In this presentation, we may sometimes refer to certain non-GAAP figures or financial ratios to help illustrate certain concepts. These ratios, each of which is defined in this document, if utilized, may include Pre- Tax Pre- Provision Income, the Tangible Common Equity to Tangible Assets Ratio, and the Texas Ratio. This information supplements our results as reported in accordance with generally accepted accounting principles (“GAAP”) and should not be viewed in isolation from, or as a substitute for, our GAAP results. We believe that this additional information and the reconciliations we provide may be useful to investors, analysts, regulators and others as they evaluate the impact of these items on our results for the periods presented due to the extent to which the items are indicative of our ongoing operations. Where applicable, we provide GAAP reconciliations for such additional information. SHUSA’s subsidiaries include Santander Consumer USA Inc. (“SC”), Santander Bank, N.A. (“SBNA”), Banco Santander International (“BSI”), Santander Securities LLC (“SSLLC”), Santander US Capital Markets LLC (“SanCap”), as well as several other subsidiaries. The information in this presentation is intended only to assist investors and does not constitute legal, tax, accounting, financial or investment advice or an offer to invest. In making this presentation available, SHUSA gives no advice and makes no recommendation to buy, sell, or otherwise deal in shares or other securities of Banco Santander, S.A. (“Santander”), SHUSA, SBNA, SC or any other securities or investments. It is not our intention to state, indicate, or imply in any manner that current or past results are indicative of future results or expectations. As with all investments, there are associated risks, and you could lose money investing. Prior to making any investment, a prospective investor should consult with its own investment, accounting, legal, and financial advisors and independently evaluate the risks, consequences, and suitability of that investment. No offering of securities shall be made in the United States except pursuant to registration under the Securities Act of 1933, as amended, or an exemption therefrom. Important Information
3 1 At a glance 2 Results Appendix 4 Index 3 Core Business Activities
4 Santander SHUSA $172B Assets ~10,600 employees Consumer Commercial Market-leading full spectrum auto lender and Consumer and Business Banking (“CBB”) Leading multifamily bank lender and proven servicer Global hub for capital markets and investment banking Leading brand in LatAm for high- net-worth (“HNW”) clients Our business model focuses on four core segments as we continue to leverage Santander’s connectivity Core Segments and Q1’25 Assets ($B) $69 $27 $30 $551Wealth Management Corporate & Investment Banking (“CIB”) SC operates in all 50 states SBNA Products include: • $81B deposits • C&I3 • CRE4 • Auto • Openbank SANCAP • Fixed-income, real estate, and finance advisory BSI • Manages wealth for HNW clients SC • Leading auto loan originator and top ABS2 issuer SHUSA’s Main Subsidiaries SHUSA is a wholly-owned subsidiary of Santander, one of the most respected banking groups in the world with approximately 175 million customers in Europe, Latin America and the U.S. SHUSA 1 | Represents assets under management, which includes customer deposits, securities, loans and letters of credits 2 | Asset-backed securitization 3 | Commercial and industrial 4 | Commercial real estate
5 SHUSA Q1 2025 Results at a Glance FINANCIAL METRICS CREDIT CAPITAL/LIQUIDITY $366M NET INCOME Up $240M QoQ Up $23M YoY 10.9% 30-89 DAYS AUTO1 DELINQUENCY Down 113bps QoQ Up 33bps YoY 12.5% CET1 3.9% NET INTEREST MARGIN (“NIM”) Up 8bps QoQ Up 6bps YoY 0.6% NCO RATE2 Down 6bps QoQ Down 2bps YoY 26.0% TLAC RATIO 1 | Consumer auto only 2 | Total quarterly NCOs / average balance of financing receivables (Consumer + Commercial) PERFORMANCE HIGHLIGHTS Revenues Sustained revenue growth, supported by higher portfolio margins, improved funding costs, and robust fee income growth (+17% YoY) driven by consumer and deposit fees, CIB, and FDIC joint venture in CRE Partially offset by lower loan and lease volumes in Auto Expenses Expenses improved sequentially (-2% QoQ) due to transformation initiatives across the company offset by strategic investments in CIB buildout and Openbank expansion Credit Strong credit performance driven by resilient consumer behavior, used car prices, and seasonal recoveries. Net charge-offs (“NCOs”) 9% lower YoY. Capital and Liquidity Solid position evidenced by regulatory metrics (Common equity Tier 1 (“CET1”) and total loss-absorbing capacity (“TLAC”)), stress tests, and contingent liquidity
6 SHUSA Q1 2025 Financial Results Quarter ended Change ($M) 1Q25 4Q24 1Q24 QoQ YoY Net interest income (“NII”) $ 1,458 $ 1,414 $ 1,378 3% 6% Fees & other income 838 826 873 1% (4%) Other non-interest income 40 40 65 0% (38%) Net revenue 2,336 2,280 2,316 2% 1% General & administrative expenses (1,527) (1,567) (1,560) (3%) (2%) Credit loss (expense)/benefit (426) (620) (405) (31%) 5% Income before taxes 383 93 351 312% 9% Tax (expense)/benefit (17) 33 (8) (152%) 113% Net income $ 366 $ 126 $ 343 190% 7% NIM 3.9% 3.8% 3.8%
7 1 At a Glance 2 Results Appendix 4 Index 3 Core Business Activities
8 Other Liabilities3, 15% Money Market, 15% Secured Structured Financings ("SSF"), 13% Certificates of Deposit ("CDs"), 12% Other Borrowings 5, 12% Equity4, 10% Noninterest-Bearing (“NIB”) Demand, 8% Interest-Bearing (“IB”) Demand, 7% Savings, 4% Revolving Credit Facilities, 2% Trading Liabilities, 2% Auto Loans, 26% Investments, 19% Cash, 12% Other Assets 2, 10% C&I, 9% Auto Leases 1, 6% Multifamily, 6% CRE, 5% Residential, 4% Goodwill and Other Intangibles, 2% Other Consumer Loans, 1% SHUSA continues to target segments with proven competitive advantages such as auto and multifamily $172B Assets Q1 Balance Sheet Overview 1 | Operating leases 2 | Includes restricted cash, federal funds sold and securities purchased under resale agreements or similar arrangements, and loans held-for-sale (“LHFS”). 3 | Includes federal funds purchased and securities loaned or sold under repurchase agreements 4 | Includes mezzanine equity 5 | Includes Federal Home Loan Bank (“FHLB”) borrowings $154B Liabilities $18B Equity4
9 43 45 45 44 45 19 19 19 18 19 18 18 17 16 16 14 13 13 12 11 7 7 7 7 6 3 4 2 2 2 1 1 1 1 $105 $106 $104 $100 $100 1Q24 2Q24 3Q24 4Q24 1Q25 Loans HFS Balance Sheet Trends | Assets 1 | Other assets includes securities purchased under repurchase agreements and LHFS Loans and leases down 4.8% YoY and flat QoQ, driven by declines in C&I and lease portfolios resulting from portfolio sales and amortization of existing portfolios, respectively. Loan yields increased 0.6% YoY and 0.1% QoQ in consumer. Auto yields increased 0.8% YoY and 0.2% QoQ. Commercial yields were flat YoY and decreased 0.2% QoQ. Assets ($B) Yield on Loans ($B) Loans & Leases ($B) Q1 Recap ($B) Other Residential Leases C&I and Other Commercial CRE and Multifamily Auto Leases Cash Other Assets1 Investments Gross Loans 5.2% 13.5% 12.3% 9.5% 0% 5% 10% 15% 20% Total commercial Auto Total consumer Total loans 91 93 90 87 87 26 28 29 29 33 21 21 19 18 20 14 13 17 19 2114 13 13 12 11 $166 $168 $168 $165 $172 1Q24 2Q24 3Q24 4Q24 1Q25
10 Consumer 65% Commercial 17% CIB 3% Wealth Management 7% Other2 8% Balance Sheet Trends | Liabilities Deposits ($B) Cost of Deposits ($B)3 Liabilities & Equity ($B) Deposits by Business 1 | Other liabilities include securities sold under repurchase agreements and trading liabilities 2 | Other consists of deposits related to certain of SHUSA’s immaterial subsidiaries and corporate treasury deposits 3 | Cost of deposit numbers are rounded. 4 | Cycle beta represents deposit beta measured relative to 61 bps change in average Fed funds (“FF”) effective rate since the beginning of the rate cutting cycle, which began in Q3 2024 Q1 2025 Insured Deposits SBNA 64%NIB Deposits Equity Other Liabilities1 Borrowed Funds IB Deposits Savings IB Deposits NIB Deposits CDs Money Market 1.5% 1.8% 2.2% 2.4% 2.6% 2.7% 2.8% 2.6% 2.6% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 SHUSA down cycle beta4 ( Q3’24-Q1’25) = 20% 25 25 26 25 26 22 21 21 21 20 15 15 15 15 14 12 12 12 12 12 4 4 4 5 7 $78 $77 $78 $78 $79 1Q24 2Q24 3Q24 4Q24 1Q25 63 62 63 63 65 44 44 44 44 45 26 29 28 25 30 18 18 18 18 1815 15 15 15 14 $166 $168 $168 $165 $172 1Q24 2Q24 3Q24 4Q24 1Q25
11 Cash at Federal Reserve Capacity at FHLB Discount window Liquidity from unencumbered securities (5% haircut) Liquidity from released govt. deposit collateral5 48.7 29.5 Liquidity & Wholesale Funding Cash and Immediately Available Sources of Liquidity Q1 Uninsured Deposits SBNA Deposits Q4 2024 Q1 2025 SBNA Insured Deposits 64% 64% Borrowed Funds Profile | Balance ($B) SBNA Contingent Liquidity4 ($B) 1Q’25 Ratio: 165% 12.6 18.8 1 | Includes the subordinated notes; includes BSI unsecured 2 | These notes are payable to SHUSA's parent company, Santander 3 | The warehouse lines and repurchase facilities are fully collateralized by a designated portion of SHUSA’s retail installment contracts (“RICs”), leased 4 | Data as of March 31, 2025 5 | Includes high quality liquid assets that are encumbered as collateral for uninsured government deposits 2.4 2.7 12.2 % Variance Q1 2025 Q4 2024 Q1 2024 QoQ YoY SHUSA Unsecured Debt1 $ 15.5 $ 13.7 $ 12.5 13% 24% SBNA Unsecured Debt2 - - 2.0 - - FHLB 3.2 4.7 5.0 (33%) (36%) Credit-Linked Notes ("CLNs") 1.1 1.2 1.0 (10%) 4% Third-Party Secured Funding3 3.2 4.0 3.4 (20%) (5%) Amortizing Notes 1.6 1.9 2.9 (14%) (45%) Securitizations 20.4 18.5 17.1 10% 19% Total SHUSA Funding 45.0 44.0 43.9 2% 2% Preferred Equity Issuance to Santander $ 2.0 $ 2.0 $ 2.0 0% 0%
12 Debt & TLAC 1 | SHUSA must hold the higher of 18% of its risk-weighted assets (“RWAs”) or 9% of its total consolidated assets in the form of TLAC, of which 6% of its RWAs or 3.5% of total consolidated assets must consist of LTD. In addition, SHUSA must maintain a TLAC buffer composed solely of CET1 capital and will be subject to restrictions on capital distributions and discretionary bonus payments based on the size of the TLAC buffer it maintains. 2 | Senior debt issuance data as of March 31, 2025 SHUSA is SEC-registered and issues under the ticker symbol “SANUSA”, with ratings for SHUSA of A-(Fitch)/Baa2(Moody’s)/BBB+(S&P) SHUSA meets Federal Reserve’s TLAC and long-term debt (“LTD”) requirements1, with 26.0% TLAC, 10.9% eligible LTD and a CET1 ratio of 12.5% In March 2025, SHUSA issued $2B of senior unsecured notes across a 4nc3yr structure ($400M) at SOFR+161, 4nc3yr structure ($850M) at 5.47%, and a 6nc5yr structure ($750M) at 5.74% SHUSA Debt Maturity Schedule2 ($B) $0.95 3.24% $0.50 6.12% $1.00 6.50% $1.00 5.35% $0.75 5.74% $0.50 8.41% $1.10 4.50% $0.43 SOFR+ 135BPS $0.85 5.47% $0.50 8.17% $1.00 3.45% $0.50 5.81% $1.05 4.40% $1.00 2.49% $0.50 6.57% $1.00 6.17% $0.50 7.66% $0.75 6.34% $1.00 9.38% $0.75 6.89% $0.40 SOFR+ 161 $0.50 2.88% $0.50 7.18% $2.10 $1.88 $2.30 $1.00 $2.75 $2.00 $1.75 $0.50 $0.75 $2.00 2025 2026 2027 2028 2029 2030 2031 2032 2035 Perpetual Private placement Public issuance Internal TLAC
13 As of October 1st, 2024, SHUSA’s current stress capital buffer (“SCB”) requirement is now 3.5%, resulting in an overall CET1 capital requirement of 8% Capital Ratios Tier 1 Risk-Based Capital Ratio1 CET11 Tier 1 Leverage Ratio1 Total Risk-Based Capital Ratio1 1 | Under capital rules, SHUSA is not required to include negative accumulated other comprehensive income (“AOCI”) in regulatory capital, but as a subsidiary of a global systemically important bank (“GSIB”) we manage AOCI closely as it impacts regulatory capital at the global consolidated level 2 | Estimate considering the full liquidation value of available-for-sale (“AFS”) of held-to-maturity (“HTM”) securities, net of statutory tax (26%) CET1 AFS & HTM Marked2 10.94% 11.02% 11.42% 11.12% 11.01% 9.7% 9.9% 9.8% 9.3% 9.2% 1Q24 2Q24 3Q24 4Q24 1Q25 14.4% 14.5% 14.6% 14.7% 14.3% 1Q24 2Q24 3Q24 4Q24 1Q25 16.5% 16.6% 16.7% 16.8% 16.4% 1Q24 2Q24 3Q24 4Q24 1Q25 12.5% 12.6% 12.7% 12.7% 12.5% 1Q24 2Q24 3Q24 4Q24 1Q25
14 Quarterly Profitability NII ($M) Pre-Tax Income ($M) Net Income ($M) Pre-Provision Net Revenue(“PPNR”) ($M) $1,378 $1,403 $1,383 $1,414 $1,458 1Q24 2Q24 3Q24 4Q24 1Q25 $756 $846 $592 $713 $809 1Q24 2Q24 3Q24 4Q24 1Q25 $351 $365 $161 $93 $383 1Q24 2Q24 3Q24 4Q24 1Q25 $343 $414 $193 $126 $366 1Q24 2Q24 3Q24 4Q24 1Q25
15 $2,114 $2,136 $2,120 $217 $261 $245 $638 $577 $441 $285 $307 $331 $499 $514 $489 $764 $693 $562 $39 $40 $40 $574 $620 $588 Q1 2024 Q4 2024 Q1 2025 $3,137 $3,254 $3,281 $1,876 $1,867 $1,679 NII $1,378 $1,414 $1,458+3% +6% Securities F.F. sold & repos Interest-earning deposits Loans Borrowings Trading liabilities F.F. purchased & repos Deposits SHUSA NII ($M) NII & NIM Drivers Net Interest Income & Net Interest Margin NIM 3.8% 3.8% 3.9% Int. Income Int. Expense Int. Income Int. ExpenseInt. Income Int. Expense Strong QoQ and YoY performance of NII and NIM driven by: Decreased interest expense QoQ (-10%) due to lower funding costs Improved auto loan margins and increased interest income on deposits and investments YoY Partially offset by lower interest income QoQ and YoY due to decrease in average rates and lower average loan balance
16 Non-Interest Income Non-Interest Income ($M) Non-Interest Income Drivers 1% -6% % Change YoY QoQ (38%) 0% (110%) +49% +17% +4% (21%) (6%) +29% (14%) $84 $125 $108 $593 $496 $466 $116 $92 $96 $80 $113 $168 $65 $40 $40 $938 $866 $878 Q1 2024 Q4 2024 Q1 2025 Securities gains, net Miscellaneous income, net Capital market revenue Consumer and commercial fees Lease income Non-interest income increased slightly (1%) QoQ driven by: Increased Wealth and CIB fee income Partially offset by lower lease income due to fewer active leased vehicle units Non-interest income decreased 6% YoY driven by: Lower lease income, partially offset by an increase in Consumer, CIB and Wealth fees, and misc. income growth driven by gains on securitization transactions, higher management fee income, and favorable foreign exchange impacts
17 $534 $545 $564 $158 $179 $185 $184 $222 $204 $84 $79 $76 $462 $374 $355 $138 $168 $143 Q1 2024 Q4 2024 Q1 2025 General, Administrative, and Other Expenses Expenses ($M) Expense Drivers % Change YoY QoQ +4% (15%) (23%) (5%) (10%) (4%) +11% (8%) +17% +3% +6% +3% $1,560 $1,567 $1,527 Other expense Lease Loan Technology1 Occupancy and equipment Compensation and benefits Total expenses declined QoQ and YoY driven by: Lower auto lease volumes, resulting in reduced depreciation and lease expenses QoQ and YoY Decreased other/administrative expenses QoQ Transformation initiatives resulting in cost savings YoY Partially offset by strategic investments in banking system build-out and digital capabilities YoY -2% -3% 1 | Includes outside services and marketing
18 Credit Loss Expense Credit Loss Expense ($M) Total Allowance for Credit Loss (“ACL”) ($M) Total Net Charge-offs ($M) Total ACL Coverage ($M) 1 | Allowance for loan and lease losses Quarter-ended 31-Mar-24 31-Dec-24 31-Mar-25 ALLL1, beginning of period (“BOP”) $ 6,932 $ 6,561 $ 6,562 Credit loss expense 409 618 419 Net charge-offs (598) (617) (547) ALLL1, end of period (“EOP”) 6,742 6,562 6,434 Reserve for unfunded lending commitments, BOP 61 46 48 Credit loss (benefit) unfunded lending commitments, EOP (4) 2 7 Reserve for unfunded lending commitments, EOP 57 48 55 Total ACL, EOP $ 6,799 $ 6,610 $ 6,489 $6,799 $6,771 $6,607 $6,610 $6,489 7.4% 7.3% 7.3% 7.6% 7.5% $- $1,0 00 $2,0 00 $3,0 00 $4,0 00 $5,0 00 $6,0 00 $7,0 00 $8,0 00 0.0 % 1.0 % 2.0 % 3.0 % 4.0 % 5.0 % 6.0 % 7.0 % 8.0 % 1Q24 2Q24 3Q24 4Q24 1Q25 ACL coverage ($M) ACL coverage % $598 $511 $595 $617 $547 1Q24 2Q24 3Q24 4Q24 1Q25 $405 $481 $431 $620 $426 1Q24 2Q24 3Q24 4Q24 1Q25
19 1 At a Glance 2 Results Appendix 4 Index 3 Core Business Activities
20 Consumer Corporate & Investment Banking Commercial Wealth Management In addition to branch-based deposits, CBB attracts customers nationwide through its new digital banking platform, Openbank Market-leading full-spectrum auto lender C&I: Provides services to a range of commercial customers CRE: Primarily multifamily loans, and robust servicing fee income from FDIC joint venture Q1 CRE portfolio consists mostly of multifamily1,2,3 Financing and banking services to corporations with institutional broker dealer, SanCap Equity research reports Investment banking BSI leads in international private banking Servicing LatAm UHNW and HNW individuals Four investment platforms Edge Act corporation Present in Miami, New York, Houston & San Diego 1 | Multifamily Construction is within “CRE” in SHUSA 10Q . Total Multifamily for 10Q = $9.81B and Total other CRE = $8.86B. 2 | Excludes commercial vehicle financing. 3 | Does not include the acquired 20% interest in a structured limited liability company (the "Structured LLC") for approximately $1.1 billion. The Structured LLC was established by the FDIC to hold and service a $9 billion portfolio primarily consisting of New York-based rent-controlled and rent-stabilized multifamily loans retained by the FDIC following a recent bank failure. SBNA classifies its 20 percent interest in the Structured LLC as an AFS debt security. Business Activities Overview Sales & trading US fixed-income market making Structuring and advisory services Preferred Lending StrategicPass-Through Auto Relationships: Multifamily 52%Multifamily Construction 21% Office 9% Retail 6% Industrial 7% Other 5%
21 Income Statement Data Loans and Deposits ($B) Consumer Activities | Auto and CBB Auto Distribution by FICO Segment3,4 Total Auto Originations ($M) 1 | Prior period data has been recast 2 | YoY % change is reflective of the values as they are presented in the 10Q for the quarterly period ended March 31, 2025, and the 10Q for the quarterly period ended March 31, 2024 3 | Data as of March 31, 2025 4 | Auto loans excludes commercial fleet and LHFS 5 | Ending balance loans and leases held-for-investment (“HFI”) Prime Loans $1,530 Prime Loans $1,679 Prime Loans $2,043 Non-Prime Loans $3,533 Non-Prime Loans $3,363 Non-Prime Loans $3,438 Lease $765Lease $409 Lease $1,798 $5,828$5,452 $7,280 Q1 2025Q4 2024Q1 2024 16% 17% 11% 9% 9% 7% 7% 6% 6% 6% 53% 51% 51% 41% 38% 38% 35% 34% 33% 35% 17% 17% 18% 16% 16% 16% 17% 18% 19% 19% 14% 15% 21% 34% 38% 39% 41% 42% 42% 40% 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q1 2025 >=640 600-639 <600 No FICO Q1 2025 Q1 20241 Total Consumer Activities YoY2($M) Auto CBB Auto CBB Interest income $ 1,633 $ 717 $ 1,548 $ 741 2.7% Interest expense 682 359 663 363 1.5% Fees and other income 20 62 (22) 61 108.5% Lease income 466 - 593 - (21.5%) Credit loss expense/(benefit) 396 38 380 52 0.6% Lease expense 355 - 461 - (23.0%) General, administrative and other expenses 299 383 348 352 (2.5%) Income/(loss) before income taxes 385 (1) 268 35 26.9% ($B) 2025 2024 YoY2 Total assets as of 3/31 $ 60 $ 10 $ 61 $ 12 (5.3%) Q1 2025 Q1 20241 YoY2 Residential mortgages $ 4 $ 5 (6.4%) Home equity loans and lines of credit 2 2 (13.0%) Auto loans 45 43 3.0% Personal unsecured loans 2 4 (54.1%) Other consumer - - - Total consumer loans5 53 54 (2.6%) Total consumer deposits $ 52 $ 49 6.9%
22 Income Statement Data Loans and Deposits ($B) Commercial Activities | CRE, Multifamily, and C&I Q1 CRE Portfolio and Geographic Diversification3 Q1 Portfolio by maturity and interest rate3 ($M) 1 | Prior period data has been recast 2 | YoY % change is reflective of the values as they are presented in the 10Q for the quarterly period ended March 31, 2025, and the 10Q for the quarterly period ended March 31, 2024 3 | Data as of March 31, 2025 4 | Ending balance loans and leases HFI ALL ~ $18.7B NY 29% NJ 12% MA 9%FL 8% Other 42% Q1 2025 Q1 2024 1 Total Commercial Activities YoY2($M) C&I CRE C&I CRE Interest income $ 227 $ 353 $ 245 $ 384 (7.8%) Interest expense 138 237 160 258 (10.2%) Fees and other income 18 20 14 9 62.0% Credit loss expense/(benefit) (6) 4 (21) 9 (80.9%) General, administrative and other expenses 48 36 47 33 3.9% Income/(loss) before income taxes 65 96 73 93 (3.4%) ($B) 2025 2024 YoY2 Total assets as of 3/31 $ 4 $ 23 $ 4 $ 24 (3.3%) Q1 2025 Q1 2024 1 YoY2 C&I loans $ 8 $ 11 (25.0%) CRE loans 9 9 (2.2%) Other commercial 7 8 1.3% Multifamily loans 10 10 (3.9%) Total commercial loans 4 34 38 (8.5%) Total commercial deposits $ 14 $ 13 5.5% Multifamily 52%Multifamily Construction 21% Office 9% Retail 6% Industrial 7% Other 5% $- $1 $2 $3 $4 $5 In One Year or Less One to Five Years Five+ Years Fixed Rate CRE Fixed Rate Multifamily Variable Rate CRE Variable Rate Multifamily
23 CIB Income Statement Data Wealth Income Statement Data 1 | Prior period data has been recast 2 | YoY % change is reflective of the values as they are presented in the 10Q for the quarterly period ended March 31, 2025, and the 10Q for the quarterly period ended March 31, 2024 CIB & Wealth Management ($M) Q1 2025 Q1 20241 YoY2 Interest income $ 713 $ 910 (21.7%) Interest expense 661 883 (25.2%) Fees and other income 192 164 16.5% Credit loss expense/(benefit) (5) (13) (58.3%) General, administrative and other expenses 204 193 5.6% Income/(loss) before income taxes 45 11 309.4% ($B) 2025 20241 YoY2 Total assets as of 3/31 $ 30 $ 27 13.3% Total deposits 2 4 (38.8%) ($M) Q1 2025 Q1 20241 YoY2 Interest income $ 87 $ 96 (9.6%) Interest expense 37 35 5.2% Fees and other income 94 84 12.9% General, administrative and other expenses 70 67 5.1% Income/(loss) before income taxes 74 78 (4.8%) Asset and Wealth Management Fees 85 81 4.9% ($B) 2025 20241 YoY2 Total assets as of 3/31 $ 8 $ 7 2.5% Total deposits 5 5 (1.7%)
24 1 At a Glance 2 Results Appendix 4 Index 3 Core Business Activities
25 Loan Delinquency by Business Portfolio 1 | Based on a percentage of financing receivables for their respective loan businesses 2 | Other consumer ($30.3M in Q1 2025) primarily includes recreational vehicle ("RV") and marine loans 3 | Other commercial ($7.6B in Q1 2025) includes commercial equipment vehicle financing leveraged leases and loans Consumer: 30-89 Days Past Due1 Consumer: 90+ Days Past Due1 Commercial: 30-89 Days Past Due1 Commercial: 90+ Days Past Due1 0% 5% 10% 15% Residential Mortgage Home Equity Auto Loans Personal Unsecured Other Consumer ² 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% CRE C&I Multifamily Other Commercial ³ 0% 1% 2% 3% 4% Residential Mortgage Home Equity Auto Loans Personal Unsecured Other Consumer ² 0.0% 0.5% 1.0% 1.5% 2.0% CRE C&I Multifamily Other Commercial ³
26 Charge-offs and Recoveries by Business Portfolio Charge-offs1,2 Recoveries3 1 | Charge-offs and NCOs are based on a percentage of their respective average loan balances 2 | Includes current period gross write-offs for Q1 2025 by class of financing receivable 3 | Recoveries are based on a percentage of gross charge-offs Consumer NCOs decreased QoQ and YoY, primarily due to seasonality, enhanced servicing practices in Auto, and resilient consumer behavior Net charge-offs1 0% 20% 40% 60% 80% 100% 120% Commercial Consumer 0.0% 0.3% 0.6% 0.9% 1.2% 1.5% 1.8% Commercial Consumer 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% Commercial Consumer
27 Q1 ACL was $6.5 billion, a decrease of $121 million from December 31, 2024. The decrease in the ACL was primarily driven by seasonal improvement in auto loan delinquencies and rating improvement in certain Commercial loans. The ACL for the consumer segment decreased by $81 million and the ACL for the commercial segment decreased by $40 million compared to December 31, 2024. Total Allowance For Credit Losses 1 | Includes ACL for unfunded commitments Allowance Ratios ($M) March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 (Unaudited) (Audited) (Unaudited) (Unaudited) (Unaudited) Total LHFI $ 87,064 $ 87,304 $ 89,686 $ 92,334 $ 91,680 Total ACL1 6,489 6,610 6,607 6,771 6,799 Total Allowance Ratio 7.5% 7.6% 7.3% 7.3% 7.4%
28 Santander1 A2/Baa1 SHUSA Baa2 SBNA2 Baa1 Santander1 A+/A- SHUSA BBB+ SBNA A- Stable outlook (February 14, 2025) In February 2025, Fitch upgraded SHUSA’s senior unsecured debt ratings to ‘A-’ rating (from ‘BBB+’) S&P and Moody’s affirmed SHUSA’s senior unsecured debt ratings in July and December 2024, respectively Outlook remains “stable” for all ratings and entities SR. DEBT RATINGS BY SANTANDER ENTITY Santander1 A+/A SHUSA A- SBNA A- Stable outlook (December 13, 2024) Stable outlook (July 26, 2024) Rating Agencies 1 | Senior preferred debt / senior non-preferred debt 2 | SBNA long-term issuer rating
29 SHUSA | Quarterly Trended Statement Of Operations ($M) 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 Interest income $ 3,254 $ 3,505 $ 3,426 $ 3,281 $ 3,137 Interest expense (1,876) (2,102) (2,043) (1,867) (1,679) Net interest income 1,378 1,403 1,383 1,414 1,458 Fees & other income 873 932 750 826 838 Other non-interest income 65 64 55 40 40 Net revenue 2,316 2,399 2,188 2,280 2,336 General, administrative, and other expenses (1,560) (1,554) (1,596) (1,567) (1,527) Credit loss expense/(benefit) (405) (481) (431) (620) (426) Income before taxes 351 364 161 93 383 Income tax (expense) / benefit (8) 50 32 33 (17) Net income / (loss) 343 414 193 126 366 NIM 3.8% 3.9% 3.8% 3.8% 3.9%
30 SHUSA | Non-GAAP Reconciliations ($M) 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 SHUSA pre-tax pre-provision income Pre-tax income / (loss) $ 325 $ 639 $ (28) $ (149) $ 351 $ 364 $ 161 $ 93 $ 383 Credit loss expense/(benefit) 542 209 856 619 405 481 431 620 426 Pre-tax pre-provision Income 867 848 828 470 756 846 592 713 809 CET1 to risk-weighted assets CET1 capital 15,916 15,942 15,788 14,205 14,173 14,346 14,512 13,724 13,751 Risk-weighted assets 125,707 124,502 123,142 114,789 113,115 113,864 114,104 108,006 110,211 Ratio 12.7% 12.8% 12.8% 12.4% 12.5% 12.6% 12.7% 12.7% 12.5% Tier 1 leverage Tier 1 capital 16,646 17,672 17,518 16,435 16,288 16,461 16,627 15,839 15,751 Avg total assets, leverage capital purposes 172,191 177,521 169,570 167,284 167,080 166,480 169,947 170,835 171,534 Ratio 9.7% 10.0% 10.3% 9.8% 9.7% 9.9% 9.8% 9.3% 9.2% Tier 1 risk-based Tier 1 capital 16,646 17,672 17,518 16,435 16,288 16,461 16,627 15,839 15,751 Risk-weighted assets 125,707 124,502 123,142 114,789 113,115 113,864 114,104 108,006 110,211 Ratio 13.2% 14.2% 14.2% 14.3% 14.4% 14.5% 14.6% 14.7% 14.3% Total risk-based Risk-based capital 19,171 20,179 20,027 18,838 18,690 18,871 19,021 18,177 18,093 Risk-weighted assets 125,707 124,502 123,142 114,789 113,115 113,864 114,104 108,006 110,211 Ratio 15.3% 16.2% 16.3% 16.4% 16.5% 16.6% 16.7% 16.8% 16.4%
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