Las políticas de vivienda en experiencia comparada

GLOBAL WHOLESALE BANKING EUR Million

Variation

INCOME STATEMENT 2013 2012 Amount % % w/o FX

Net interest income 2,464 2,708 (245) (9.0) (3.6)

Net fees 1,254 1,360 (106) (7.8) (3.4)

Gains (losses) on financial transactions 1,159 840 319 38.0 47.0

Other operating income ⁽¹⁾ 271 268 3 1.2 1.8

Gross income 5,148 5,176 (29) (0.6) 4.9

Operating expenses (1,736) (1,764) 29 (1.6) 2.9

Net operating income 3,412 3,412 (0) (0.0) 5.9

Net loan-loss provisions (952) (420) (532) 126.7 131.3

Other income (72) (45) (27) 58.7 58.7

Profit before taxes 2,388 2,947 (559) (19.0) (13.6)

Tax on profit (661) (827) 166 (20.1) (14.6)

Profit from continuing operations 1,727 2,120 (393) (18.5) (13.3)

Net profit from discontinued operations ƒ ƒ ƒ ƒ ƒ

Consolidated profit 1,727 2,120 (393) (18.5) (13.3)

Minority interests 225 209 15 7.2 19.1

Attributable profit to the Group 1,503 1,911 (408) (21.4) (16.7)

BUSINESS VOLUMES

Customer loans 77,511 87,897 (10,386) (11.8) (7.7)

Customer deposits 58,366 82,023 (23,657) (28.8) (24.9)

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

From a management point of view, profit before provisions was backed by client revenues, which accounted for 87% of the area»s total were 1.1% higher in constant euros. Those generated by the global customer relation model rose 2%

excluding the exchange rate impact.

Of note by geographic areas and in local currency was year-on-year growth in client revenues in Latin America (+10%), backed by Brazil (+16%) and the small countries, and the change of trend in Spain (+3%). On the other hand, sharp decline in the UK (-20%) due to lower revenues in markets with interest rates at their lowest.

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

Transaction Banking

Global Transaction Banking⁽¹⁾, maintained solid client revenues: +1% year-on-year without the exchange-rate effect (-3% in current euros).

By business, trade finance was stable, underpinned by Santander»s solid position in its natural markets. Of note was the growth in the UK and the US, in contrast to the weak performance of Brazil. Similar performance of cash management due to weak evolution in Europe offset by Latin America and the US.

Basic financing registered the higher increase in client revenues, thanks to active management of spreads that offset the disintermediation and containment of risk assets in European markets. Stable revenues in custody and settlement due to the pick up in Latin America offsetting the weak performance in Europe.

Corporate Finance

Reduced client revenues from Corporate Finance ⁽²⁾(-17%

year-on-year and -16% in constant euros), due to sluggish activity in Latin America in the second half of the year.

Santander was an active player in M&A ⁽²⁾in the advisory services for investors in the Spanish market, particularly those from Asia and the US: the purchase of Veolia Environment;

the entry into the capital of NH; the acquisition of 5% of

CLH, etc. Also noteworthy was Santander»s involvement in the purchase-sale of assets in countries in Latin America (the sale of 40% of Telefonica»s operations in Central America;

the sale of part of Dalkia businesses, etc).

Of note in Equity Capital Markets (ECM) was Santander»s role in the main Spanish issues of convertible bonds (ACS, Indra and IAG), as well as in the first issue of ≈CoCoΔ bonds of a Spanish bank, and in Latin America the capital increases of Fibra Uno in Mexico and Enersis in Chile (subsidiary of Endesa) of $7,700 million overall.

CED ⁽²⁾activity grew for the third year running, underscoring its potential as an alternative source of funding, investment or coverage for corporate clients.

Credit

Credit markets ⁽³⁾increased their client revenues (+1% year-on-year; +5% in constant euros). Better performance in the US, the UK and Brazil, offsetting the decline in Spain.

Of note in syndicated corporate loans was Santander»s participation as co-arranger in the $63,000 million loan for Verizon-Vodafone»s operation, and as active bookrunner in Glencore»s EUR13,000 million loan operation.

In project finance, Santander was the only bank as a bookrunner in the first two project bonds in Europe under the Europe 2020 Project Bond initiative of the European Union and the European Investment Bank for a total of EUR 1,800 million. In Latin America, Santander was the

bookrunner in the $1,700 million project bond for Brazil»s Odebrecht in the US market which refinances two project finance for the construction of oil drilling ships. There were also various project bonds in Mexico for close to MXN 12,000 million for infrastructure and concession-holder companies, as well as structures in Chile.

In the primary bond market, Santander led as joint bookrunner two Kingdom of Spain issues of EUR 7,000 million each, and it also was senior co-manager in Verizon»s

$49,000 million issue, the largest ever, to acquire 49% of Verizon Wireless from Vodafone. Furthermore, Santander

GROSS INCOME. BREAKDOWN

(*) Excluding exchange rate impact: total: +5%; customers: +1%

NET OPERATING INCOME

remains as one of the main participants in the Latin American bond market.

The gross income of Asset and Capital Structuring (AC&S) continued to register high double-digit growth, backed by significant rises in portfolios and revenues in Latin America, the UK and the US.

Global Markets

Global markets ⁽⁴⁾maintained their client revenues in constant euros (-3% in current euros) in an environment adjusting to the new regulations.

Solid evolution of revenues from sales (+11% in constant euros) in a context of limited opportunities. Most of the large units performed well, with double-digit growth in Brazil, Portugal and the US, which offset the fall in the UK.

All segments registered positive growth excluding the exchange-rate impact, especially retail and institutional (around 10%), backed by business in interest rate, exchange rate inflation and money market.

The management of books also benefited from inflows of capital and volatility scenarios, as well as from the recovery in equity markets. This resulted in a positive contribution for the year which offset the declines in previous quarters.

In equities, including derivatives, the year-on-year decline in client revenues softened (-1% without the exchange-rate effect compared to double-digit falls at the start of the

year). The recovery of the Spanish stock market, particularly in the second half of the year, was the main reason for this change of trend.

Mixed trends in derivatives for lending and hedging: good progress in Latin America in local currency, especially in Mexico and Brazil, as against a slowdown in Europe where volumes were lower than in 2012.

Activity Area Country / region Source Award Best Trade & Supply Chain Bank in Latin America GTB Latin America Trade Finance Award Best Overall Trade Bank in Latin America GTB Latin America Trade Finance Award Best Trade Bank in Latin America GTB Latin America Trade Finance Review Award Best Trade finance bank in Latin America (including Caribean) GTB Latin America GTR

Award Best Trade Finance Bank 2013: Spain GTB Spain Global Finance Award Best Trade Advisor in Latin America GTB Latin America Trade Finance Award Best Project/Infrastructure Finance Deal: Odebrecht Drilling Norbe CM Brazil LatinFinance Award EMEA Loan Glencore Xstrata»s US$17.34bn loan CM Europe IFR

Award Europe Telecoms Deal of the Year: Arqiva CM Europe Project Finance Magazine Award Europe Transmissions Deal of the Year: Greater Gabbard CM Europe Project Finance Magazine Award Infrastructure Bank of The Year In Latin America CM Latin America Infrastructure Investor N1.* Equities Research en Iberia GM Iberia Institutional Investors N1.* Equities Research en Iberia GM Iberia Extel

Award ECP/EMTN Hybrid Funding Platform GM Europe Mtn-i (*).- Ranking according to survey selection criteria

(1) Global transaction banking (GTB): includes cash management, trade finance, basic financing and custody.

(2) Corporate finance: includes mergers and acquisitions √M&A√, equity capital markets √ECM√, and investment solutions for corporate clients via derivatives √CED-.

(3) Credit markets (CM): include units for the origination and distribution of corporate loans or structurerd finance, bond origination and securitisation teams and asset and capital structuring.

(4) Global markets (GM): include the sale and distribution of fixed income and equity derivatives, interest rates and inflation, the trading and hedging of exchange rates, short-term money markets for the Group»s wholesale and retail clients, managemento of books associated with distribution, brokeage of equities, and derivatives for investment and hedging solutions.

RANKING IN 2013

Business model adjusted to the new regulatory and market environment in order to gain market share in products of low capital and liquidity consumption by selling them to SGBM clients and at the networks.

The basic actions in 2014 will focus on:

• Develop, together with retail banking, the sale of SGBM products for all the bank»s customers.

• Boost transactions with customers in the UK, the US and Poland.

• Strengthen customers» results to gain market share in other geographic areas.

• Maintain active management of capital and liquidity.

Strategy and objectives in 2014

Attributable profit was EUR 313 million, 22.3% lower year-on-year, and accounted for 4% of the operating areas» total.

Excluding the corporate insurance operations recorded in 2012 (reinsurance of life-risk assurance operations in Spain and Portugal) and in 2013 (strategic alliance in

bancassurance -life-risk and general- in Spain) attributable profit would have been 7.1% lower in constant euros.

Strategy and activity

Asset Management business revolves around three specialized business areas: Santander Asset Management, in mutual and pension funds, companies and discretional

portfolios; Santander Real Estate, in management of real estate investment products; and Santander Private Equity, in venture capital.

Santander Asset Management (SAM) continued to develop its global business model which is supported by the strength and market knowledge of local managers. As part of this, SAM reached a strategic agreement with Warburg Pincus and General Atlantic to drive its global business through improvements in the range of products and services and strengthen institutional business where there is a high growth potential.

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

As regards products, the segmented range of mutual funds was extended to four countries following the launch of profiled funds in Mexico and Chile for Select clients. New local institutional mandates were also won to manage various types of assets such as fixed income, multi-strategy and structured products in Brazil and Spain.

Lastly, the structure of global teams was consolidated, after completing the management structures for Latin American and global European mandates, which benefits institutional business.

Santander Insurance provided protection and savings solutions to more than 17 million clients in 20 countries, with a segmented offer via multichannel.

Attributable profit of EUR 313 million, (-22.3%).

• Impact of the corporate operations on insurance in Spain and Portugal, and of exchange rates.

Excluding their impact, profit was 7.1% lower.

Gross income accounted for 9% of the operating areas» total (+3% on a like-for-like basis).

Asset Management: 2% growth in gross income in constant euros.

• Strategic agreement to drive global business (goal of doubling the volume in five years).

Insurance: gross income (+4% on a like-for-like basis) plus value of business recognized from corporate operations.