Table of Contents

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Issuer

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

the Securities Exchange Act of 1934

For the month of July, 2016

Commission File Number: 001-12518

Banco Santander, S.A.

(Exact name of registrant as specified in its charter)

Ciudad Grupo Santander

28660 Boadilla del Monte (Madrid) Spain

(Address of principal executive office)

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

Form 20-F  x             Form 40-F  ¨

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

Yes  ¨            No   x

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

Yes  ¨            No   x

Table of Contents

Banco Santander, S.A.

TABLE OF CONTENTS

Table of Contents

		Item 1

PRESS RELEASE

FIRST HALF 2016 RESULTS

Santander delivers profit of EUR 2.911 billion and reaffirms objective of increasing cash dividend per share by 10% and total dividend per share by 5% in 2016

Underlying profit amounted to EUR 3.280 billion, a 9% increase year on year.

Corporate Communications		1
Ciudad Grupo Santander, edificio Arrecife, pl. 2
28660 Boadilla del Monte (Madrid). Tel.: +34 91 289 5211
[email protected]
www.santander.com - Twitter: @bancosantander

Table of Contents

Madrid, 27 July 2016. Banco Santander registered attributable profit of EUR 2.911 billion in the first half of 2016, a 32% decrease compared to the same period of 2015. This decline is affected by one-offs and the depreciation against the euro of the currencies of the main countries where the Group is present.

In the second quarter of 2016, one-off charges amounting to net EUR 368 million were booked, while in the same quarter last year a positive one-off of EUR 835 million was registered from the reversal of loan loss provisions in Brazil. Without the impact of these one-offs and the exchange rate effect, the Group’s ordinary profit grows 9% to EUR 3.28 billIion.

In the first half of 2015, currencies were stronger against the euro. For this reason, for comparison purposes, the income statement includes variations in euros and without the exchange rate impact.

In a year in which the global macroeconomic outlook has deteriorated, Banco Santander improved the quality of its balance sheet, its solvency and its profitability. This allows the Bank to reaffirm its commitment to end the year with an increase in earnings per share, while growing total dividend per share 5% and the cash dividend, approximately 10%.

Results

In this scenario, the Bank’s two main business lines, lending and customer funds, increased by 4%. In addition, the number of loyal clients increased by 10%, to 14.4 million, and digital customers 23%, to 19.1 million. These increases in business and loyalty led to growth of 3% in net interest income and 8% in fee income. This performance is mainly a result of greater transactionality and product sales that stem from the 1|2|3 strategy which has already been implemented in the UK, Spain, Portugal and, recently, Mexico. Increasing loyalty and digitalization are pillars of the Group’s commercial transformation.

Net operating income, which indicates recurring results generation capacity, reached EUR 11,275 million, a 2% increase (-8% in euros). The efficiency ratio stood at 47.9%, a 0.2 point improvement over the prior quarter.

Corporate Communications		2
Ciudad Grupo Santander, edificio Arrecife, pl. 2
28660 Boadilla del Monte (Madrid). Tel.: +34 91 289 5211
[email protected]
www.santander.com - Twitter: @bancosantander

Table of Contents

Loan loss provisions came in at EUR 4,613 million, almost the same as the first half of 2015 (-9% in euros). This performance occurs in the context of a drop in NPLs, now at 4.29%, 0.35 percentage point less than a year ago, and an increase in coverage of three points, to 73%. NPLs improved in general, with Spain, Mexico, Chile, Poland and Santander Consumer Finance (SCF) standing out.

57% of Group profits is generated in Europe and 43% in the Americas. By country, the largest contribution was made by the UK, with 20%, followed by Brazil (19%), Spain (15%), Mexico (7%), the United States and Chile (6% each), Portugal (5%), Argentina (4%) and Poland (3%). SCF, which operates in more than ten European countries, particularly in Germany, Spain and the Nordics, contributed 13% to profits after earning 533 million, with growth of 16% in euros, 18% without the exchange rate effect.

Business

Banco Santander closed the first quarter of 2016 with total assets of EUR 1.343 trillion, an increase of 6% year on year (0% in euros). Lending volume amounted to EUR 795,182 million, 4% over last year (-3% in euros). Overall customer funds reached EUR 765,859 million, with growth of 4% (-2% in euros).

Spain. The loan portfolio reached EUR 157,337 million euros, with a 2% drop over the first half of 2015. Nevertheless, this figure represents an increase of almost 1% with respect to the first quarter 2016, reflecting growth in financing to businesses. The year-on-year decrease is tied to the 8% drop in financing to the public sector and the 3% decrease in the mortgage book. New production increased sharply, with growth of 18% in SMEs and 25% lending to retail customers due to consumer finance and mortgages.

Total customer funds (deposits plus mutual funds) amounted to EUR 218,687 million, a 4% decrease. Low interest rates and the appeal of the 1|2|3 account meant that term deposits fell 21%, while demand deposits rose 2% and assets in mutual funds rose 3%. The cost of deposits fell for the second consecutive quarter, to 0.48%, 0.08 point less than the prior year.

Corporate Communications		3
Ciudad Grupo Santander, edificio Arrecife, pl. 2
28660 Boadilla del Monte (Madrid). Tel.: +34 91 289 5211
[email protected]
www.santander.com - Twitter: @bancosantander

Table of Contents

The 1|2|3 strategy, which now benefits 1.24 million customers in Spain of which 380,000 joined this year, improves customer loyalty and increases market share in payroll deposits, pensions and card fees. This increased activity resulted in fee income growth of 7% in retail banking.

United Kingdom. The lending portfolio amounted to EUR 251,977 million at the end of the first half of 2016, with growth of 3% in pounds (-11% in euros) and progress made in all segments. Financing to companies grew 11%, and mortgages and consumer financing, 2%. The mortgage book is diversified throughout the UK and is high quality, with low average amounts per mortgage, low ratios of loan over asset value and low total credit over customer income.

In the U.K., the volume of assets in mutual funds reached EUR 211,699 million and grew 6% in the year in pounds (-9% in euros). Over the last four years, the 1|2|3 strategy, has attracted 4.9 million clients, 276,000 in the first half of 2016.

Brazil. The credit portfolio reached EUR 72,096 million, with a decrease of 2% in reals (-5% in euros). By segments, financing to individuals increased 3%, boosted by payroll credit and mortgages, while lending to companies declined.

Total deposits and mutual funds reached EUR 91,507 million, with growth of 6% without the exchange rate effect (+2% in euros), with good progress in letras financeiras (notes) and mutual funds.

As for the rest of the Group’s main countries, United States grew lending 4% and slightly increased customer funds; in Mexico, loans rose 16% and customer funds, 14%; Chile increased both business lines 8%; Portugal grew lending 23% and customer funds, 24%; Poland increased loans 12% and customer funds, 7%; and Argentina grew its credit portfolio 46% and customer funds 53% (both impacted by high inflation).

Corporate Communications		4
Ciudad Grupo Santander, edificio Arrecife, pl. 2
28660 Boadilla del Monte (Madrid). Tel.: +34 91 289 5211
[email protected]
www.santander.com - Twitter: @bancosantander

Table of Contents

Lastly, Santander Consumer Finance, which groups the consumer finance business in continental Europe, grew deposits 5% and lending to customers 14%, boosted by the agreement with French group PSA Finance.

Capital

With regards to capital ratios, the bank closed the first half of the year with total eligible equity of EUR 79,371 million, and risk weighted assets of EUR 586,020 million. Santander has a CET1 capital ratio of 12.32%, 2.57 percentage points more than the minimum required by the European Central Bank for 2016, which is 9.75%.

The CET1 fully loaded capital ratio, which assumes capital requirements that will be in force as of 1 January 2019, is 10.36%, 0.31 point more than at the end of 2015. This capital ratio is in line to reach Santander’s goal of 11% by 2018.

Banco Santander´s board of directors has announced its intention to distribute a EUR 0.21 dividend against the 2016 fiscal year, which would mean an increase of 5% of the dividend per share over 2015. Of this amount, EUR 16.5 cents would be paid in cash, 10% more than the prior year, and EUR 4.5 cents in cash or shares, depending on each shareholder’s preference. Next August 1, the first dividend charged to 2016 results will be paid and it will be EUR 5.5 cents per share in cash, 10% more than the same period last year.

Banco Santander has a market capitalization of approximately EUR 55,000 million, making it the leading bank in the euro zone. Santander has 3,794,920 shareholders and 191,138 employees serving over 121 million customers through 12,589 branches.

More information at www.santander.com

Corporate Communications		5
Ciudad Grupo Santander, edificio Arrecife, pl. 2
28660 Boadilla del Monte (Madrid). Tel.: +34 91 289 5211
[email protected]
www.santander.com - Twitter: @bancosantander

Table of Contents

FINANCIAL REPORT 2016
		JANUARY - JUNE
		Key consolidated data

KEY CONSOLIDATED DATA

Balance sheet (€ Million)		Jun’16				Mar’16				%				Jun’16				Jun’15				%				2015
Total assets			1,342,906				1,324,200				1.4				1,342,906				1,339,376				0.3				1,340,260
Net customer loans			783,457				773,452				1.3				783,457				799,233				(2.0	)			790,848
Customer deposits			671,903				670,626				0.2				671,903				687,918				(2.3	)			683,142
Managed and marketed customer funds			1,077,369				1,057,964				1.8				1,077,369				1,082,946				(0.5	)			1,075,563
Total equity			100,346				98,781				1.6				100,346				101,952				(1.6	)			98,753
Total managed and marketed funds			1,517,386				1,489,950				1.8				1,517,386				1,514,136				0.2				1,506,520
Underlying income statement* (€ Million)		2Q’16				1Q’16				%				1H’16				1H’15				%				2015
Net interest income			7,570				7,624				(0.7	)			15,194				16,319				(6.9	)			32,189
Gross income			10,929				10,730				1.9				21,660				23,062				(6.1	)			45,272
Net operating income			5,703				5,572				2.3				11,275				12,256				(8.0	)			23,702
Underlying profit before taxes			2,954				2,732				8.1				5,685				5,988				(5.1	)			10,939
Underlying attributable profit to the Group			1,646				1,633				0.8				3,280				3,426				(4.3	)			6,566

Changes on a currency-neutral basis:

Quarterly: Net interest income: -1.8%; Gross income: +0.8%; Net operating income: +1.1%; Attributable profit: -0.2%

Year-on-year: Net interest income: +3.0%; Gross income: +3.6%; Net operating income: +2.2%; Attributable profit: +8.9%

Underlying EPS, profitability and efficiency* (%)		2Q’16				1Q’16				%				1H’16				1H’15				%				2015
EPS (euro)			0.11				0.11				0.8				0.22				0.24				(8.4	)			0.45
RoE			7.45				7.46								7.45				7.51								7.23
RoTE			11.09				11.13								11.10				11.46								10.99
RoA			0.60				0.58								0.59				0.61								0.58
RoRWA			1.37				1.33								1.35				1.36								1.30
Efficiency ratio (with amortisations)			47.8				48.1								47.9				46.9								47.6
Solvency and NPL ratios (%)		Jun’16				Mar’16				%				Jun’16				Jun’15				%				2015
CET1 fully-loaded			10.36				10.27								10.36				9.83								10.05
CET1 phase-in			12.32				12.36								12.32				12.38								12.55
NPL ratio			4.29				4.33								4.29				4.64								4.36
Coverage ratio			72.5				74.0								72.5				70.1								73.1
Market capitalisation and shares		Jun’16				Mar’16				%				Jun’16				Jun’15				%				2015
Shares (millions)			14,434				14,434				—				14,434				14,317				0.8				14,434
Share price (euros)			3.429				3.874				(11.5	)			3.429				6.264				(45.3	)			4.558
Market capitalisation (€ million)			49,496				55,919				(11.5	)			49,496				89,679				(44.8	)			65,792
Tangible book value (euro)			4.13				4.07								4.13				4.18								4.07
Price / Tangible book value (X)			0.83				0.95								0.83				1.50								1.12
P/E ratio (X)			7.93				8.99								7.93				13.27								10.23
Other data		Jun’16				Mar’16				%				Jun’16				Jun’15				%				2015
Number of shareholders			3,794,920				3,682,927				3.0				3,794,920				3,203,349				18.5				3,573,277
Number of employees			191,138				194,519				(1.7	)			191,138				190,262				0.5				193,863
Number of branches			12,589				12,962				(2.9	)			12,589				12,910				(2.5	)			13,030
Information on total profit**		2Q’16				1Q’16				%				1H’16				1H’15				%				2015
Attributable profit to the Group			1,278				1,633				(21.8	)			2,911				4,261				(31.7	)			5,966
EPS (euro)			0.08				0.11				(22.9	)			0.19				0.30				(35.6	)			0.40
RoE			7.03				7.46								7.03				8.42								6.57
RoTE			10.47				11.13								10.48				12.86								9.99
RoA			0.57				0.58								0.56				0.68								0.54
RoRWA			1.32				1.33								1.29				1.51								1.20
P/E ratio (X)			8.99				8.99								8.99				10.58								11.30

		6

Table of Contents

Item 2

Table of Contents

Table of Contents

FINANCIAL REPORT 2016
		JANUARY - JUNE
		Key consolidated data

KEY CONSOLIDATED DATA

Balance sheet (€ Million)		Jun’16				Mar’16				%				Jun’16				Jun’15				%				2015
Total assets			1,342,906				1,324,200				1.4				1,342,906				1,339,376				0.3				1,340,260
Net customer loans			783,457				773,452				1.3				783,457				799,233				(2.0	)			790,848
Customer deposits			671,903				670,626				0.2				671,903				687,918				(2.3	)			683,142
Managed and marketed customer funds			1,077,369				1,057,964				1.8				1,077,369				1,082,946				(0.5	)			1,075,563
Total equity			100,346				98,781				1.6				100,346				101,952				(1.6	)			98,753
Total managed and marketed funds			1,517,386				1,489,950				1.8				1,517,386				1,514,136				0.2				1,506,520
Underlying income statement* (€ Million)		2Q’16				1Q’16				%				1H’16				1H’15				%				2015
Net interest income			7,570				7,624				(0.7	)			15,194				16,319				(6.9	)			32,189
Gross income			10,929				10,730				1.9				21,660				23,062				(6.1	)			45,272
Net operating income			5,703				5,572				2.3				11,275				12,256				(8.0	)			23,702
Underlying profit before taxes			2,954				2,732				8.1				5,685				5,988				(5.1	)			10,939
Underlying attributable profit to the Group			1,646				1,633				0.8				3,280				3,426				(4.3	)			6,566

Changes on a currency-neutral basis:

Quarterly: Net interest income: -1.8%; Gross income: +0.8%; Net operating income: +1.1%; Attributable profit: -0.2%

Year-on-year: Net interest income: +3.0%; Gross income: +3.6%; Net operating income: +2.2%; Attributable profit: +8.9%

Underlying EPS, profitability and efficiency* (%)		2Q’16				1Q’16				%				1H’16				1H’15				%				2015
EPS (euro)			0.11				0.11				0.8				0.22				0.24				(8.4	)			0.45
RoE			7.45				7.46								7.45				7.51								7.23
RoTE			11.09				11.13								11.10				11.46								10.99
RoA			0.60				0.58								0.59				0.61								0.58
RoRWA			1.37				1.33								1.35				1.36								1.30
Efficiency ratio (with amortisations)			47.8				48.1								47.9				46.9								47.6
Solvency and NPL ratios (%)		Jun’16				Mar’16				%				Jun’16				Jun’15				%				2015
CET1 fully-loaded			10.36				10.27								10.36				9.83								10.05
CET1 phase-in			12.32				12.36								12.32				12.38								12.55
NPL ratio			4.29				4.33								4.29				4.64								4.36
Coverage ratio			72.5				74.0								72.5				70.1								73.1
Market capitalisation and shares		Jun’16				Mar’16				%				Jun’16				Jun’15				%				2015
Shares (millions)			14,434				14,434				—				14,434				14,317				0.8				14,434
Share price (euros)			3.429				3.874				(11.5	)			3.429				6.264				(45.3	)			4.558
Market capitalisation (€ million)			49,496				55,919				(11.5	)			49,496				89,679				(44.8	)			65,792
Tangible book value (euro)			4.13				4.07								4.13				4.18								4.07
Price / Tangible book value (X)			0.83				0.95								0.83				1.50								1.12
P/E ratio (X)			7.93				8.99								7.93				13.27								10.23
Other data		Jun’16				Mar’16				%				Jun’16				Jun’15				%				2015
Number of shareholders			3,794,920				3,682,927				3.0				3,794,920				3,203,349				18.5				3,573,277
Number of employees			191,138				194,519				(1.7	)			191,138				190,262				0.5				193,863
Number of branches			12,589				12,962				(2.9	)			12,589				12,910				(2.5	)			13,030
Information on total profit**		2Q’16				1Q’16				%				1H’16				1H’15				%				2015
Attributable profit to the Group			1,278				1,633				(21.8	)			2,911				4,261				(31.7	)			5,966
EPS (euro)			0.08				0.11				(22.9	)			0.19				0.30				(35.6	)			0.40
RoE			7.03				7.46								7.03				8.42								6.57
RoTE			10.47				11.13								10.48				12.86								9.99
RoA			0.57				0.58								0.56				0.68								0.54
RoRWA			1.32				1.33								1.29				1.51								1.20
P/E ratio (X)			8.99				8.99								8.99				10.58								11.30

		3

Table of Contents

FINANCIAL REPORT 2016
		JANUARY - JUNE
		Santander aim

Helping people and businesses prosper

(*) 2015 data

(**) (The last four dividends paid) / 1H’16 average share price

4

Table of Contents

FINANCIAL REPORT 2016
		JANUARY - JUNE
		Santander aim

Simple | Personal | Fair

Employees
•  Human Resources continued to progress in adapting its strategy to the Group’s new culture in order to drive the Bank’s transformation and make customers the focal point.
•  In order to create a better working environment, Be Healthy (global programme of health and wellbeing) and Santander Way Recognition (recognition platform) were launched in the second quarter, and progress is being made in Flexiworking.
•  Among other measures, corporate behaviour patterns are being incorporated to the various processes for managing people (selection, evaluation, training and remuneration), for which a communication campaign was conducted for executives and their teams.
Customers
•  Of note in improving customer loyalty was the good pace of opening new 1|2|3 accounts in Spain as well as in Portugal and the United Kingdom; and consolidation of the differentiated offer in Brazil and Mexico.
•  Significant advances continued to be made in NEO CRM commercial tools with the new CRM in Poland and Argentina and improved tools in Uruguay.
•  We continued to increase capacities within the digital transformation. Of note in the second quarter was the mobile payment in Spain and enhancements in apps in Chile and Poland.
•  In order to keep on improving the satisfaction and experience of our customers, new, simpler and more efficient processes are being installed.
Shareholders
•  Annual Report: email sent to shareholders with the direct link to the online Report and a survey to shareholders for them to assess it, in order to know their opinion and be able to improve the Report.
•  Social networks strengthened: communication of the online quarterly report in social networks. Of note was the excellent reception at Linkedin (142,000 visits, 42% of followers).
•  Becas Capacitas: launch of scholarship programme for university students who are shareholders or families of shareholders with disabilities.
Communities
•  Santander and the Latin American Union of Universities signed an agreement to support the academic programmes and research projects of this network formed by the universities of Buenos Aires, Sao Paulo, Mexico’s UNAM, Madrid’s Complutense and the University of Barcelona.
•  Universia Spain held its shareholders’ meeting, attended by the rectors of almost all Spanish universities and representatives of the main Latin American universities.
• The Santander prizes for innovation and entrepreneurship among university students were awarded in Mexico and Puerto Rico, with a record number of projects presented. The fourth edition of the researcher excellence prize in Chile was launched.

		5

Table of Contents

FINANCIAL REPORT 2016
		JANUARY - JUNE
		First half highlights

FIRST HALF HIGHLIGHTS

 

Increase in loyal and digital customers within the transformation of the commercial model

 

•  We continued to transform our commercial model and make it increasingly Simple, Personal and Fair.
•  The number of loyal customers increased 10% over the last 12 months (individuals: +9% and companies: +13%).
•  The number of digital customers rose by 3.6 million (+23% since June 2015), reflecting the strength of the multi-channel strategy.

 

Underlying profit growth with good performance of commercial revenues and provisions

 

•  Second quarter attributable profit of €1,278 million, affected by non-recurring items and the contribution to the Single Resolution Fund. Excluding this, profit was €1,646 million, in line with the first quarter.
•  Without these impacts and on a currency-neutral basis, the first half underlying profit was €3,280 million, 9% more year-on-year, due to:
–  Solid commercial revenues, driven by net interest income and fee income.
–  Costs almost stable in real terms and on a like-for-like basis.
–  Small rise in provisions, after falling in the first quarter.
•  Including them, the first half attributable profit was €2,911 million, 32% less than the first half of 2015.

 

Solid capital ratios and appropriate for the business model, balance sheet structure and risk profile

 

•  Fully-loaded CET1 ratio of 10.36%. Rise of 9 b.p. in the second quarter (+31 b.p. in the last 6 months), due to profit generation and management of risk-weighted assets (+12 p.p.), coupled with some non-recurring impacts, which accounted for 3 b.p. negative.
•  Total capital ratio of 13.54% and fully-loaded leverage ratio of 4.9%.
•  Tangible net asset value per share of €4.13 (+€0.06 in the quarter).

 

Return, earnings per share and dividend per share. Creating shareholder value

 

•  Underlying RoTE of 11.1%, in line with 2015.
•  Underlying RoRWA of 1.35%, better than at the end of 2015.
•  Earnings per share (EPS) in the first half of 2016 were €0.19, and underlying EPS €0.22.
•  The first two interim dividends charged to 2016’s earnings have been approved. We aim to increase the total dividend by 5% and by around 10% in cash.

6

Table of Contents

FINANCIAL REPORT 2016
		JANUARY - JUNE
		First half highlights

FIRST HALF HIGHLIGHTS

 

In a complex environment, we continued to expand our activity, mainly in emerging countries

 

•  Impact of exchange rates: marginal in the second quarter; -6/-7p.p. in 12 months.
•  On a currency-neutral basis:
–  Lending rose 4% year-on-year and increased in all the main segments and in eight of the 10 core units.
–  Funds increased 4% year-on-year due to demand deposits. Growth in nine of the 10 core units.
•  Solid funding structure and liquidity. Net loan-to-deposit ratio of 117%.

 

Improvement in all credit quality ratios

 

•  Non-performing loans down 10% year-on-year (-7% on a currency-neutral basis).
•  NPL ratio of 4.29% on a continued downward trend. Of note in the quarter Spain, SCF, Poland and Chile.
•  Coverage ratio was 73% (+3 p.p. since June 2015).
•  Cost of credit of 1.19%, 13 b.p. lower than in June 2015. Excluding Santander Consumer USA, 0.84% (-18 b.p.).

Business areas: (more detail on pages 19-34 and in the appendix)

		7

Table of Contents

FINANCIAL REPORT 2016
		JANUARY - JUNE
		Customers

Customers

Our competitive advantage is having more critical mass in each of our 9+1 core markets (including Santander Consumer Finance in Europe), where we serve 122 million customers. This is what enables us to generate revenues consistently, quarter after quarter, and via the economic cycle.

We have gained the trust of our customers during many years of efforts, taking care of their financial needs.

Our business continues to be based on personal relations. Our priority this year and beyond will be to win the loyalty of our customers and foster greater use of our digital banking services.

Loyal customers: 14.4 million

•  We want to engage a larger number of customers and make transaction banking the key element. We analyse which products have opportunities to be improved within each market and work to develop projects to engage more customers.
•  Developing value offers for each type of customer and having a long-term strategy are the base for increasing customers’ confidence and loyalty in the Group’s core countries.
•  The number of loyal customers increased to 14.4 million in the second quarter, thanks to new commercial tools (Poland and Argentina) and to tailored value offers (cards, 1|2|3 mini account, Santander Select Global Value proposal throughout the Group).
•  Loyal individual customers increased 9% in the 12 months to June and 13% in companies.
•  We continued to transform our offices in order to offer a more personalised service and simpler and more intuitive processes.

Digital customers: 19.1 million

•  Digitalisation is the key for adapting Santander to the new way of interacting with customers.
•  Santander is carrying out an intense digitalisation process that affects not only the services provided to its customers but also all its operations, both internal as well as external; how to use data to spur business growth; updating and modernising systems and streamlining processes and the organisation in general.
•  The number of digital customers increased in 12 months by more than 3.5 million to 19.1 million at the end of June (+23%).
•  The main units are Brazil (more than 5 million digital clients) and the UK (over 4 million). Also of note is Mexico (+45%).
•  Mobile banking users surged 54% in the last 12 months, reflecting the success of our focus on developing strategies to foster the use of our digital services and products.

8

Table of Contents

FINANCIAL REPORT 2016
		JANUARY - JUNE
		General background

General background

Grupo Santander conducted its business during the second quarter in a challenging economic environment and one with highly volatile markets

Banking activity continued to be affected by interest rates still at historic lows in most developed economies, tougher competition in some markets, mainly for lending, and a more demanding regulatory environment.

Exchange rates: 1 euro / currency parity

		9

Table of Contents

FINANCIAL REPORT 2016
		JANUARY - JUNE
		Consolidated financial report

Grupo Santander results

First half highlights

Income statement

€ Million