Form 6-K

Banco Santander, S.A.

Date: November 12, 2015

/s/ José García Cantera

Name: José García Cantera

Title: Chief Financial Officer

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 November, 2015

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

Banco Santander, S.A.

TABLE OF CONTENTS

INCORPORATION BY REFERENCE

This report on Form 6-K shall be deemed to be incorporated by reference into the registration statement on Form F-3 (Registration Number: 333-207389) of Banco Santander, S.A. and to be a part thereof from the date on which this report is filed, to the extent not superseded by documents or reports subsequently filed or furnished.


Item

1		Financial report for January-September 2015 results.

2		Financial statements for January-September 2015 results.

EXPLANATORY NOTE RELATING TO FINANCIAL REPORT

This financial report relating to the three and nine months ended September 30, 2015 is substantially the same in all material respects as the Financial report for January-September 2015 results (the “January-September 2015 financial report”) we previously furnished to the SEC on November 2, 2015 on Form 6-K, and shall be deemed to be incorporated by reference into the registration statement on Form F-3 (Registration Number: 333-207389) of Banco Santander, S.A. The financial report filed with this Form 6-K excludes credit ratings information as well as targets and goals included in the aforementioned January-September 2015 financial report.

PRESENTATION OF FINANCIAL AND OTHER INFORMATION

The financial information in this document should be read together with Banco Santander, S.A. and its subsidiaries (the “Group”) audited consolidated financial statements for the year ended December 31, 2014 and unaudited interim condensed consolidated financial statements for the nine months ended September 30, 2015, including in each case the notes related thereto.

General Information on Certain Measures

When we refer to “perimeter effect”, we mean growth or reduction derived from changes in the companies that we consolidate resulting from acquisitions, dispositions or other reasons. For the nine months ended September 30, 2015, the perimeter was impacted by the acquisition of GE Nordics and Carfinco and implementation of the agreement with PSA in France, the UK and Portugal, and in Brazil, the JV with Bonsuceso, the acquisition of Getnet and the acquisition of minority interests.

When we refer to a measure presented on a “fully-loaded” basis, we mean that such measure is calculated without applying the transitional provisions under Capital Requirements Directive IV, or CRD IV. When we refer to a measure presented on a “phase-in” basis, we mean that such measure is calculated giving effect to such transitional provisions as applicable at the dates as of which the relevant financial measure is presented. In addition, where noted, certain capitalization measures are adjusted to give effect to the capital increase of EUR7,500 million that Banco Santander completed on January 9, 2015 as if it occurred on December 31, 2014. The common equity Tier 1 (CET1) fully-loaded ratio for the Group as of December 31, 2014, adjusted to give effect to the capital increase completed on January 9, 2015, was 9.7%. Excluding this effect, the CET1 fully-loaded ratio for the Group as of December 31, 2014 was 8.3%.

Where a translation of foreign exchange is given for any financial data, we use the exchange rates of the relevant period (as of the end of such period for balance sheet data and the average exchange rate of such period for income statement data) as published by the European Central Bank, unless otherwise noted.

Management makes use of certain financial measures in constant currency and/or local currency to help in the assessment of on-going operating performance. These non-GAAP financial measures include the results of operations of our subsidiary banks located outside

the eurozone, excluding the impact of foreign exchange. We calculate constant currency percentages by converting our prior-period local currency financial results using the current period exchange rates and comparing these adjusted amounts to our current period reported results. We analyze financial performance on a constant currency and/or local currency basis, as indicated, to better measure the comparability of results between periods. Because changes in foreign currency exchange rates have a non-operating impact on the results of operations, we believe that evaluating financial performance on a constant and/or local currency basis provides an additional and meaningful assessment of performance to both management and our investors.

Item 1

LOGO

Financial report


3	Key consolidated data

4	Highlights of the period

6	Santander aim

8	General background

10	Income statement

14	Balance sheet

18	Risk management

20	Business information by geography

	22	Main units of Continental Europe

	26	United Kingdom

	27	Main units of Latin America

	32	United States

	33	Corporate Centre

34	Information by global business

	34	Retail Banking

	35	Santander Global Corporate Banking

36	Corporate Governance

37	Corporate Social Responsibility

38	The Santander share

39	Financial information. Appendix

At Banco Santander, we take advantage of new

communication technologies and the social

networks to improve dialogue with our

stakeholders

LOGO


		FINANCIAL REPORT 2015		JANUARY - SEPTEMBER

KEY CONSOLIDATED DATA


Balance sheet (€ million)	Sep’15		Jun’15		%			Sep’15		Sep’14		%		Dec’14
Total assets		1,320,427		1,339,376		(1.4	)		1,320,427		1,241,104		6.4		1,266,296
Net customer loans		777,020		799,233		(2.8	)		777,020		721,988		7.6		734,711
Customer deposits		669,236		687,900		(2.7	)		669,236		646,331		3.5		647,628
Managed and marketed customer funds		1,045,513		1,082,948		(3.5	)		1,045,513		1,020,433		2.5		1,023,437
Stockholders’ equity		88,320		91,497		(3.5	)		88,320		77,325		14.2		80,806
Total managed and marketed funds		1,479,841		1,514,136		(2.3	)		1,479,841		1,402,277		5.5		1,428,083

Ordinary income statement* (€ million)	3Q’15		2Q’15		%			9M’15		9M’14		%		2014
Net interest income		7,983		8,281		(3.6	)		24,302		21,834		11.3		29,548
Gross income		11,316		11,618		(2.6	)		34,378		31,572		8.9		42,612
Pre-provision profit (net operating income)		5,974		6,189		(3.5	)		18,229		16,750		8.8		22,574
Profit before taxes		2,778		2,998		(7.3	)		8,766		7,140		22.8		9,720
Attributable profit to the Group		1,680		1,709		(1.7	)		5,106		4,361		17.1		5,816

Variations w/o exchange rate:

Quarterly: Net interest income: +1.4%; Gross income: +2.3%; Pre-provision profit: +2.0%; Attributable profit: +3.8%

Year-on-year: Net interest income: +8.5%; Gross income: +6.5%; Pre-provision profit: +6.4%; Attributable profit: +11.8%


Ordinary EPS, profitability and efficiency* (%)	3Q’15		2Q’15		%			9M’15		9M’14		%			2014
EPS ⁽¹⁾(euro)		0.113		0.115		(2.1	)		0.349		0.367		(4.9	)		0.479
RoE ⁽²⁾		7.4		7.4					7.5		7.2					7.0
RoTE ⁽²⁾		11.3		11.4					11.4		11.3					11.0
RoA		0.6		0.6					0.6		0.6					0.6
RoRWA		1.3		1.3					1.3		1.3					1.3
Efficiency ratio (with amortisations)		47.2		46.7					47.0		46.9					47.0

Solvency and NPL ratios (%)	Sep’15		Jun’15		%			Sep’15		Sep’14		%			Dec’14
CET1 fully-loaded ⁽²⁾		9.85		9.83					9.85							9.65
CET1 phase-in ⁽²⁾		12.39		12.38					12.39		11.44					12.23
NPL ratio		4.50		4.64					4.50		5.28					5.19
Coverage ratio		71.1		70.1					71.1		67.5					67.2

Market capitalisation and shares	Sep’15		Jun’15		%			Sep’15		Sep’14		%			Dec’14
Shares (million)		14,317		14,317		—			14,317		11,988		19.4			12,584
Share price (euros)		4.744		6.264		(24.3	)		4.744		7.611		(37.7	)		6.996
Market capitalisation (EUR million)		67,918		89,679		(24.3	)		67,918		91,241		(25.6	)		88,041
Book value (euro)		6.19		6.40					6.19		6.45					6.42
Price / Book value (X)		0.77		0.98					0.77		1.18					1.09
P/E ratio (X)		10.19		13.27					10.19		15.55					14.59

Other data	Sep’15		Jun’15		%			Sep’15		Sep’14		%			Dec’14
Number of shareholders		3,209,138		3,203,349		0.2			3,209,138		3,229,672		(0.6	)		3,240,395
Number of employees		191,504		190,262		0.7			191,504		183,534		4.3			185,405
Number of branches		12,901		12,910		(0.1	)		12,901		13,059		(1.2	)		12,951

(*).-

In 2Q’15 and 9M’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

(1).-

Ordinary EPS: Ordinary attributable profit including the AT1 cost recorded in shareholders’ equity / average number of shares for the period excluding treasury shares

(2).-

In 2014, pro-forma taking into account the January 2015 capital increase.

Note:

The financial information in this report was approved by the Board of Directors at its meeting on October, 28 2015, following a favourable report from the Audit Committee on October, 21 2015.


JANUARY - SEPTEMBER		FINANCIAL REPORT 2015
		HIGHLIGHTS OF THE PERIOD


g Profit growth with good performance of commercial revenues and provisions
• Third quarter attributable profit of €1,680 million, with negative impact of exchange rates. Excluding this, 4% growth. • Ordinary attributable profit of €5,106 million in the first nine months, 17% more than the same period of 2014:
– Positive impact of exchange rates (+12% without the forex effect).
– Gross income increased, due to net interest income and fee income.
– Costs virtually unchanged in real terms and on a like-for-like basis, absorbing regulatory effects and the implementation of innovation and efficiency plans.
– Drop in provisions and improved cost of credit (1.26% as against 1.52% in September 2014).


g The growth in volumes reflects the strategy followed in segments, products and countries
• Impact of exchange rates: -4/-5 p.p. in the third quarter and -1/-3 p.p. year-on-year.
• Lending rose 7% year-on-year in constant euros, with growth in eight of our 10 core countries. Perimeter impact: +2 p.p.
• Funds up 7% in constant euros, with all countries making a positive contribution. Of note Latin America and the US.
• Solid funding structure and liquidity continued. Net loan-to-deposit ratio of 116%.


g High solvency and enhanced Group credit quality
• Fully loaded CET1 ratio of 9.85%. Organic generation (+13 b.p.) was offset by the impact of exchange rates on the valuation of the portfolio available for sale and the rise in treasury stock.
• Total capital ratio of 12.75% and fully loaded leverage ratio 4.7%.
• Non-performing loan (NPL) entries, isolating the perimeter and exchange rate effects, were 22% lower than in the first nine months of 2014.
• The NPL ratio continued to improve, notably in the third quarter in Spain, the UK and Mexico.


g Advances in the commercial transformation programme and in the multi-channel distribution model
• Transforming our business model into one that is increasingly Simple, Personal and Fair continued.
• Differentiated value offers to improve engagement and relations with individual customers: 1/2/3 account in Spain and Portugal.
• The NEO CRM tool was further extended.
• For companies, expansion of Santander Advance, already present in eight countries, and Santander Trade, available in 12 countries.
• Strengthening multi-channels (better websites, new developments for mobile phones, etc.).


		FINANCIAL REPORT 2015		JANUARY - SEPTEMBER
		HIGHLIGHTS OF THE PERIOD

g Business areas: (more detail on pages 20-35)

• Continental Europe: Third quarter attributable profit of €625 million, 12% more than in the second quarter, due to higher revenues. First nine months profit of €1,825 million (+75% year-on-year), with greater revenues, controlled costs and sharply reduced provisions.

• United Kingdom: third quarter attributable profit of £343 million, 13% lower than the second quarter by other provisions. Profit in the first nine months was £1,087 million (+14%). Revenues fuelled by net interest income and lower loan-loss provisions, reflecting the better quality balance sheet and the improved macroeconomic environment.

• Latin America: third quarter ordinary attributable profit of €783 million, 11% lower than the second quarter impacted by exchange rates. Excluding this impact, it remained unchanged. The first nine months profit was 22% higher year-on-year at €2,500 million (excluding fx impact), with general growth in revenues, more costs because of the increased installed capacity and new commercial projects, and stable provisions.

• United States: third quarter attributable profit of $206 million, lower than in the second quarter because of lower gains on financial transactions and higher costs. The first nine months profit was $735 million (-9% year-on-year), affected by higher minority interests and tax on profit, as profit before taxes was 6% higher.

g Santander share: (more detail on page 38)

• The Santander share ended the third quarter lower at €4.744, in an environment of falls in stock markets. At the date of publication of this report, the share stood at €5.204 up 10% in October.

• The first interim dividend charged to 2015’s earnings was paid in cash in August (€0.05 per share).

• Between October and November, and under the Santander Dividendo Elección (scrip dividend) programme, shareholders can opt to receive in cash or in shares the amount equivalent to the second dividend (€0.05 per share) charged to 2015’s earnings.

g Other significant events:

• Between October 1 and the date of publication of this report, the following material fact occurred which could have an impact on the Group’s business and activity:

– Standard & Poor’s upgraded Banco Santander’s long-term senior debt from BBB+ to A-, a notch above that for Spain’s sovereign debt.

Following this upgrade, Santander’s rating with the three main rating agencies is A-.

• More detail can be found on the website of the National Securities Market Commission (www.cnmv.es) and on Santander’s website (www.santander.com) in the investor relations section.

LOGO


JANUARY - SEPTEMBER		FINANCIAL REPORT 2015
		SANTANDER AIM

Our purpose is to help people and businesses prosper

Our aim is to be the best retail and commercial bank,

earning the lasting loyalty of our people, customers, shareholders and communities


Best bank for our employees				Best bank for our customers

Attract, engage and retain the best talent, capable of providing the best service to our customers and guarantee the business success and sustainability.				Build long-term customer relationships providing simple and tailor-made solutions, a fair and equal treatment and excellent service in our branches and digital channels, in order to enhance their satisfaction and engagement with the Bank.










Best bank for communities				Best bank for our shareholders

Conduct our banking activity contributing to the economic and social progress of the communities in which we operate, in a responsible and sustainable way, and particularly committed to the field of higher education.				Generate an attractive and sustainable return for our shareholders based on a business model with a high degree of recurring revenues, prudent risks, efficient, with disciplined use of capital and financial strength.

We continue to make progress in implementing our strategy to become more

Simple, Personal and Fair


		FINANCIAL REPORT 2015		JANUARY - SEPTEMBER
		SANTANDER AIM

Simple | Personal | Fair

Employees

Human Resources is reviewing its strategy to ensure it responds to the needs of the new culture and contributes to the rest of the Group’s strategic lines. Of note among the main points are:

•

Definition, through a bottom-up process, of the behaviour that will make Santander a more Simple, Personal and Fair bank.

•

Regarding talent, the career potential of over 1,350 managers was analysed by the Talent Evaluation Committees. A new definition of corporate behaviour was included in the 180º assessment for managers, to foster a more Simple, Personal and Fair management.

•

As a result of the engagement survey, the Flexiworking initiative was launched to promote a new more productive way of working. Another example is Best4US, a corporate platform that brings together employees across the group to share common interests.

•

Noteworthy in the third quarter was the selection of Santander by univervity students as the most preferred bank to work for in Latin America, according to the 2015 Universum ranking, and in Spain according to Universum’s annual review Empleadores Ideales.

Customers

Transforming our business model into one that is more personalised and digital continued, in order to enhance customer satisfaction and loyalty:

•

In individual customers, the 1/2/3 account has been well received in Spain since its launch, with the opening of more than 500,000 accounts up to September 30^th. In the Select segment, the offer was increased in Germany by including profiled investment portfolios, and in Chile the customer attention model was renewed.

•

In SMEs and companies, Santander Advance’s value offer was strengthened in the eight countries where it is present, as well as the internationalisation of customers with Santander International Desk, Santander Passport and Santander Trade. The latter is now available in 12 countries and used by more than 30,000 exporters and importers.

The Bank continued to make progress in strengthening its many channels with better commercial websites, new applications and mobile phone features, including the launch in the UK of Cash KiTTi, an app designed for group money management, and Spendlytics, which enables card spending to be controlled. The processes that customers use in their dealings with the Bank continued to be improved.

Shareholders

We continued to develop initiatives to improve transparency with our shareholders and facilitate the exercise of their rights. Of note in the third quarter were:

•

The Group’s 2016-2018 strategy was presented at the Investor Day in London in September.

•

New corporate website with tab integrated for investors and shareholders.

•

Quarterly shareholders’ report available online on the same day as the presentation of results.

•

Capacitas scholarships to help shareholders and their relations with disabilities in their university studies.

Communities

As part of its commitment to society, of note in the third quarter were the following:

•

Grupo Santander City hosted for the fourth year the summer courses of the Complutense University. Particularly noteworthy were the courses on sustainable development, the new forms of working in the 21^stcentury, employability, entrepreneurship and innovation.

•

270 students from 45 universities in Mexico, Brazil and China took part in the Top China programmes, and carried out internet-of-things related projects.

•

More than 700,000 students from 11 countries attained their first job in the first nine months of 2015 through the 2,336 Universia employment portals in universities.

•

In Brazil, the portfolio since 2002 of the Bank’s microcredit programme reached the all-time record of BRL 3 billion.


JANUARY - SEPTEMBER		FINANCIAL REPORT 2015
		GENERAL BACKGROUND

General Background

Grupo Santander conducted its activity in the third quarter of 2015 in a more favourable economic environment in the developed economies where it operates, while emerging economies faced important challenges.

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

Developed countries:

The expansion in the US and the UK remained firm and the recovery in the euro zone continued to strengthen.

•

The US economy grew again at a brisk pace in the second quarter (3.9% quarterly annualised). The main driver was domestic demand, particularly household consumption, fuelled by the recovery in the labour market, the low oil price and positive wealth effects. The dollar’s appreciation and the slowdown in emerging markets, however, are harming investment in capital goods and exports. Third quarter GDP growth could be lower, as job creation is less intense, although still high. The unemployment rate has dropped to levels close to medium-term equilibrium (around 5%), as a result of which the Fed will continue to assess whether to begin to raise interest rates before the end of the year.

•

UK output rose 0.7% quarter-on-quarter in the second quarter, above potential. The downward risks in the first quarter seem to have disappeared, and uncertainty is now focused on the international environment. Growth is mainly fuelled by consumption, although investment is beginning to strengthen.

Inflation was at around 0%, and the further fall in oil prices will keep it that way until the end of the year. The jobless rate continued to fall, although at a slower pace, while salaries are starting to rise.

•

The Eurozone continued to grow at a good pace in the second quarter. Output increased 0.4% quarter-on-quarter after 0.5% in the first three months (in year-on-year terms growth accelerated from 1.2% to 1.5%). These figures reflect more balanced growth between the external sector and domestic demand, within which consumption remained buoyant. The third quarter indicators point to a similar pace of recovery. Inflation was affected by the evolution of oil prices and was 0.1% negative in September. The European Central Bank is prepared to increase its quantitative easing programme if the slowdown in emerging economies has permanent effects on the euro zone, of which there is no evidence at the moment.

•

Germany’s economy accelerated a little from 0.3% to 0.4% quarter-on-quarter in the second quarter, thanks to greater exports, which was partly offset by lower investment.

•

Spains’s growth quickened in the second quarter to 1% (3.1% year-on-year). The country continued to stand out for its growth in the euro zone and will probably continue to do so in the short term. Growth for the whole of 2015 is likely to be just over 3%.

•

Portugal: The Portuguese economy maintained quarter-on-quarter growth of 0.5%. Domestic demand was strong, leading to more imports and a negative contribution to growth from the external sector.

Emerging countries:

Among the emerging economies, the Latin American ones varied:

•

Brazil: Brazil: GDP shrank 1.9% quarter-on-quarter in the second quarter (-2.6% in the last 12 months). The jobless rate rose to 7.6% in August from 6.9% in June. Inflation was 9.5% in September, reflecting the adjustment of tariffs and the real’s depreciation. The central bank kept the Selic rate at 14.25%, following a rise of 50 b.p. in July (+325 b.p. in 12 months). The purpose of these rises is to prevent the increase in inflation from impacting medium-term expectations. The central bank intends to anchor inflation expectations around its central target of 4.5%.

The external sector remained very solid, with reserves of 19% of GDP. Current account surplus and net capital inflows via direct investments remained stable at around 4% of GDP, despite the uncertainty in international markets. The real depreciated 22% against the dollar in the third quarter (34% since the end of 2014). The respective depreciations against the euro were 23% and 28%.

•

Mexico: The economy continued to recover in the first half of 2015 (year-on-year growth of 2.4%). The upswing in exports, consumption and private investment was compensated by an adjustment in stocks, which solidified expectations that the economy will continue to improve. Inflation remained very moderate (lower than 3%), with the Banco de México holding its benchmark rate at 3% (since June 2014), although remaining vigilant on US monetary policy and ready to raise its rates in line with the Fed, in order to avert possible rises in volatility.

The peso depreciated 7% against the dollar in the third quarter (13% in the first nine months). The depreciation against the euro was 8% and 6%, respectively.


		FINANCIAL REPORT 2015		JANUARY - SEPTEMBER
		GENERAL BACKGROUND

•

Chile: The Chilean economy slowed down in the second quarter to 1.9% (2.5% in the first quarter) due to less activity in the primary and manufacturing sectors, while the service sector continued to recover. Inflation rose in August to 5%, reflecting the impact of the peso’s depreciation. Although inflation expectations for 2016 remain at around 3%, and in order to anticipate its possible increase, the central bank tightened its monetary policy in September, indicating its readiness to raise rates after keeping them unchanged at 3% since October 2014.

The peso fell 9% against the dollar and the euro in the third quarter (13% and 6%, respectively, since the end of 2014).

•

Poland: The pace of the Polish economy remained virtually unchanged quarter-on-quarter in the second quarter, but lower in year-on-year terms (3.3% compared to 3.6% in the first three months). The third quarter indicators were weaker than expected and deflation continued until August (-0.8% year-on-year). The macroeconomic fundamentals, however, remained solid and the policies well focused.

The central bank cut its benchmark interest rate to 1.5% and the market gives some probability to a further reduction in 2016.

Exchange rates: 1 euro / currency parity


	Average (income statement)				Period-end (balance sheet)
	9M’15		9M’14		30.09.15		31.12.14		30.09.14
US$		1.113		1.354		1.120		1.214		1.258
Pound sterling		0.727		0.812		0.739		0.779		0.777
Brazilian real		3.487		3.099		4.481		3.221		3.082
New Mexican peso		17.321		17.766		18.977		17.868		16.998
Chilean peso		711.376		759.987		784.882		737.323		755.823
Argentine peso		9.980		10.787		10.558		10.277		10.672
Polish zloty		4.155		4.175		4.245		4.273		4.178


JANUARY - SEPTEMBER		FINANCIAL REPORT 2015
		CONSOLIDATED FINANCIAL REPORT

u Grupo Santander results

First nine months highlights

Third quarter attributable profit of €1,680 million, 4% more than the second quarter excluding the impact of exchange rates.

Ordinary attributable profit in the first nine months of €5,106 million, 17% higher year-on-year mainly due to:

•

Positive evolution of exchange rates (ordinary profit rose 12% excluding this impact).

•

Perimeter impact of between one and three p.p. on revenues, costs and provisions.

•

Gross income rose, due to net interest income and fee income.

•

Stable costs in real terms and on a like-for-like basis, absorbing regulatory effects and plans underway for innovation and efficiency improvement.

•

Lower provisions and better cost of credit (1.26% vs. 1.52% in September 2014).

The efficiency ratio remained at around 47% and is among the best of our peers.

Ordinary RoTE at 11.4%, +10 b.p. year-on-year.

Ordinary income statement € million


							Variation												Variation
	3Q’15			2Q’15			%			% w/o FX			9M’15			9M’14			%			% w/o FX
Net interest income		7,983			8,281			(3.6	)		1.4			24,302			21,834			11.3			8.5
Net fees		2,474			2,586			(4.3	)		0.5			7,584			7,172			5.8			4.9
Gains (losses) on financial transactions		634			372			70.4			76.3			1,702			2,229			(23.7	)		(25.7	)
Other operating income		225			379			(40.7	)		(39.7	)		790			337			134.4			124.1
Dividends		75			239			(68.7	)		(68.1	)		347			323			7.6			7.7
Income from equity-accounted method		93			101			(7.3	)		1.4			293			180			63.4			71.7
Other operating income/expenses		57			39			44.7			27.6			149			(166	)		—			—
Gross income		11,316			11,618			(2.6	)		2.3			34,378			31,572			8.9			6.5
Operating expenses		(5,342	)		(5,429	)		(1.6	)		2.6			(16,149	)		(14,822	)		8.9			6.7
General administrative expenses		(4,731	)		(4,826	)		(1.9	)		2.3			(14,342	)		(13,125	)		9.3			6.9
Personnel		(2,717	)		(2,836	)		(4.2	)		(0.3	)		(8,308	)		(7,543	)		10.2			7.6
Other general administrative expenses		(2,015	)		(1,989	)		1.3			6.0			(6,034	)		(5,583	)		8.1			6.0
Depreciation and amortisation		(611	)		(603	)		1.2			4.6			(1,806	)		(1,697	)		6.4			4.9
Net operating income		5,974			6,189			(3.5	)		2.0			18,229			16,750			8.8			6.4
Net loan-loss provisions		(2,479	)		(2,508	)		(1.2	)		4.8			(7,550	)		(8,110	)		(6.9	)		(8.4	)
Impairment losses on other assets		(110	)		(78	)		41.5			43.8			(247	)		(225	)		10.1			9.7
Other income		(606	)		(605	)		0.2			5.5			(1,666	)		(1,275	)		30.6			34.5
Ordinary profit before taxes		2,778			2,998			(7.3	)		(2.2	)		8,766			7,140			22.8			18.0
Tax on profit		(787	)		(939	)		(16.2	)		(11.8	)		(2,649	)		(1,882	)		40.8			36.0
Ordinary profit from continuing operations		1,991			2,059			(3.3	)		2.1			6,117			5,258			16.3			11.7
Net profit from discontinued operations		—			—			—			—			—			(7	)		(100.0	)		(100.0	)
Ordinary consolidated profit		1,991			2,059			(3.3	)		2.1			6,117			5,252			16.5			11.8
Minority interests		311			350			(11.1	)		(6.1	)		1,011			891			13.5			11.9
Ordinary attributable profit to the Group		1,680			1,709			(1.7	)		3.8			5,106			4,361			17.1			11.8

Ordinary EPS (euros) ⁽¹⁾		0.113			0.115			(2.1	)					0.349			0.367			(4.9	)
Ordinary diluted EPS (euros) ⁽¹⁾		0.113			0.115			(2.2	)					0.348			0.366			(4.8	)

Pro memoria:
Average total assets		1,335,790			1,359,450			(1.7	)					1,340,924			1,185,486			13.1
Average stockholders’ equity ⁽²⁾		90,248			91,856			(1.8	)					90,861			80,845			12.4

NOTE:-

In 2Q’15 and 9M’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil.

(1).-

Ordinary EPS: Ordinary attributable profit including the AT1 cost recorded in shareholders’ equity / average number of shares for the period excluding treasury shares.

(2).-

Stockholders’ equity: Sharedholders’ equity + Equity adjustments by valuation. In 2014, pro-forma taking into account the January 2015 capital increase.


		FINANCIAL REPORT 2015		JANUARY - SEPTEMBER
		CONSOLIDATED FINANCIAL REPORT

Third quarter results

•

Ordinary attributable profit of €1,680 million, with negative impact of exchange rates. Excluding this effect, 4% growth.

–

Gross income up 2%, thanks to net interest income (moderate growth in business in some countries), fee income and normalisation of gains on financial transactions, following a second quarter when they were very low.

–

Higher costs due to the aforementioned plans, higher inflation and regulations.

–

Higher loan-loss provisions, mainly in Brazil.

Ordinary quarterly income statement € million


	2014												2015
	1Q			2Q			3Q			4Q			1Q			2Q			3Q
Net interest income		6,992			7,370			7,471			7,714			8,038			8,281			7,983
Net fees		2,331			2,403			2,439			2,524			2,524			2,586			2,474
Gains (losses) on financial transactions		767			511			952			620			695			372			634
Other operating income		34			204			99			182			186			379			225
Dividends		31			220			72			112			33			239			75
Income from equity-accounted method		65			42			72			64			99			101			93
Other operating income/expenses		(63	)		(58	)		(45	)		6			53			39			57
Gross income		10,124			10,488			10,961			11,040			11,444			11,618			11,316
Operating expenses		(4,847	)		(4,906	)		(5,070	)		(5,216	)		(5,377	)		(5,429	)		(5,342	)
General administrative expenses		(4,256	)		(4,360	)		(4,509	)		(4,656	)		(4,785	)		(4,826	)		(4,731	)
Personnel		(2,455	)		(2,515	)		(2,572	)		(2,670	)		(2,755	)		(2,836	)		(2,717	)
Other general administrative expenses		(1,801	)		(1,844	)		(1,937	)		(1,985	)		(2,030	)		(1,989	)		(2,015	)
Depreciation and amortisation		(590	)		(546	)		(560	)		(560	)		(592	)		(603	)		(611	)
Net operating income		5,277			5,582			5,891			5,824			6,067			6,189			5,974
Net loan-loss provisions		(2,695	)		(2,638	)		(2,777	)		(2,452	)		(2,563	)		(2,508	)		(2,479	)
Impairment losses on other assets		(87	)		(71	)		(67	)		(151	)		(60	)		(78	)		(110	)
Other income		(347	)		(438	)		(491	)		(642	)		(454	)		(605	)		(606	)
Ordinary profit before taxes		2,149			2,435			2,556			2,580			2,990			2,998			2,778
Tax on profit		(569	)		(664	)		(649	)		(814	)		(922	)		(939	)		(787	)
Ordinary profit from continuing operations		1,579			1,771			1,908			1,766			2,067			2,059			1,991
Net profit from discontinued operations		(0	)		(0	)		(7	)		(19	)		0			0			(0	)
Ordinary consolidated profit		1,579			1,771			1,901			1,746			2,067			2,059			1,991
Minority interests		277			318			296			291			350			350			311
Ordinary attributable profit to the Group		1,303			1,453			1,605			1,455			1,717			1,709			1,680
Ordinary EPS (euros) (1)		0.113			0.122			0.131			0.112			0.121			0.115			0.113
Ordinary diluted EPS (euros) (1)		0.113			0.122			0.131			0.112			0.120			0.115			0.113

NOTE:

In the second quarter of 2015 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil.

(1).-

Ordinary EPS: Ordinary attributable profit including the AT1 cost recorded in shareholders’ equity / average number of shares for the period excluding treasury shares.

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JANUARY - SEPTEMBER		FINANCIAL REPORT 2015
		CONSOLIDATED FINANCIAL REPORT

First nine months results

Revenues

•

Gross income increased 9% year-on-year in current euros and 7% in constant euros, as follows:

–

Net interest income rose 9%, mainly due to growth in lending and lower cost of funds.

Increases in Brazil, UK, US, Santander Consumer Finance, Mexico, Portugal and Chile, falls in Poland because of lower interest rates, and slightly in Spain against a backdrop of low interest rates and tough competition in lending.

–

Fee income grew 5%, but with an uneven performance by units because of countries’ different economic and activity cycles and, in some cases, the impact of regulatory changes that limited revenues, chiefly in insurance and cards.

–

26% fall in gains on financial transactions, conditioned by the high ones in 2014 derived from the management of interest rate hedging portfolios and the global corporate segment.

–

Positive impact on other operating income of revenues from leasing operations, mainly in the US, higher results from companies recorded by the equity method of accounting and collection of dividends.

Also, as a result of the change in accounting rules, the ordinary contribution to the Deposit Guarantee Fund in Spain is recorded when accruing interest, which is at the end of the year, and so there was no charge for this item in the first nine months, as it will be fully charged in the fourth quarter.

Operating expenses

•

Operating expenses rose 9% (+7% in constant euros year-on-year). This was due to several factors: the evolution of inflation in Latin America, the innovation programmes, the plans to improve efficiency, the impact of the measures taken by the Bank as a result of the new regulatory requirements, particularly in the US, and the change of perimeter.

•

Costs increased by only 1%, once adjusted for the perimeter (+2.3%) and for the period’s average inflation (3.4%). This evolution reflects the positive impact of the three-year efficiency and productivity plan launched at the end of 2013, which is enabling us to make the greater investments commented on as well as maintain real growth in costs at close to zero.

Of note was the fall in real terms in Brazil (-6.4% on a like-for-like basis), Spain (-1.7%) and Portugal (-0.5%).

•

The efficiency ratio remained stable at around 47% throughout the year (47.0% in the first nine months), in line with the same period of 2014 (46.9%).

Loan-loss provisions

•

Loan-loss provisions were 7% lower (-8% in constant euros), with significant falls in Spain, the UK and Portugal. This was due to the improvement in the quality of portfolios, thanks to active risk management and a better macroeconomic environment.

•

Lower provisions, combined with higher lending, further improved the Group’s cost of credit from 1.52% in September 2014 to 1.26% a year later. Excluding SCUSA, which because of its type of business, has a high level of provisions and recoveries, the cost of credit was 0.95% (1.25% in September 2014).

Most units recorded lower provisions, particularly Spain, Portugal, Brazil, Mexico and the UK.

LOGO


		FINANCIAL REPORT 2015		JANUARY - SEPTEMBER
		CONSOLIDATED FINANCIAL REPORT

Net operating income net of provisions

•

Net operating income net of provisions increased 24% (+20% in constant euros), driven by double-digit growth in most of the units.

Other income and provisions

•

Other income and provisions was €1,913 million negative (€1,500 million negative in the first nine months of 2014), due to more provisions to bolster the balance sheet.

Ordinary profit

•

Ordinary profit before tax, which best shows the business evolution, rose 23% and 18% in constant euros.

•

The tax charge rose, to a larger extent due to greater tax pressure in some units such as Portugal, Santander Consumer Finance, Brazil and Mexico.

•

Minority interests increased 12% in constant euros, as the rises in the US (due to better SCUSA results) and Santander Consumer Finance (materialisation of agreements with PSA) were partly offset by the repurchase in Brazil in the fourth quarter of 2014.

•

Ordinary attributable profit was €5,106 million, 17% higher year-on-year (+12% in constant euros).

The units that posted the most significant growth in their profits were Spain (+64%), Portugal (+61%), Santander Consumer Finance (+28%, partly due to the perimeter), Brazil (+37%, partly due to the acquisition of minority interests) and the UK (+14%), the last two countries in constant euros.

•

The ordinary RoTE was 11.4%, +10 b.p. year-on-year.

•

Ordinary earnings per share were €0.349, a drop of 5% over the first nine months of 2014, affected by the increase in the number of shares during the period (capital increase in January and Santander Dividendo Elección programmes), as well as the higher financial cost due to new issues of AT1 instruments.

The cost of these issues, in accordance with accounting rules, is not recorded in the income statement, but against net equity and is included when calculating the EPS.

Group attributable profit

•

The following non-recurring results in the first nine months of 2014 and the same period of 2015 are not included in the profit:

–

In the first nine months of 2014 capital gains were recorded for the Altamira operation, the listing of Santander Consumer USA and the change in the UK pension commitments (€1,335 million overall). At the same time a fund was established for restructuring costs and a charge was made for impairment losses on intangible assets and other provisions of a similar amount. The net impact of these amounts on the profit was zero.

–

Additionally, in the first nine months of 2015 the Group recorded attributable profit of €835 million due to the net result of the reversal of tax liabilities in Brazil.

•

Incorporating this extraordinary item, the Group’s first nine months attributable profit was €5,941 million, 36% higher than in the same period of 2014 (+30% in constant euros), and EPS was €0.408 (+11%).

LOGO


JANUARY - SEPTEMBER		FINANCIAL REPORT 2015
		CONSOLIDATED FINANCIAL REPORT

Balance sheet € million

Assets

30.09.15

30.09.14

Variation
amount

31.12.14

Cash on hand and deposits at central banks

70,841

76,478

(5,637

)

(7.4

)

69,428

Trading portfolio

149,903

142,840

7,063

4.9

148,888

Debt securities

43,882

58,325

(14,443

)

(24.8

)

54,374

Customer loans

8,235

524

7,711

—

2,921

Equities

15,257

9,770

5,487

56.2

12,920

Trading derivatives

80,425

71,533

8,892

12.4

76,858

Deposits from credit institutions

2,104

2,688

(583

)

(21.7

)

1,815

Other financial assets at fair value

52,110

35,925

16,185

45.1

42,673

Customer loans

12,320

10,266

2,054

20.0

8,971

Other (deposits at credit institutions, debt securities and equities)

39,790

25,659

14,131

55.1

33,702

Available-for-sale financial assets

117,835

99,226

18,609

18.8

115,251

Debt securities

112,965

94,333

18,632

19.8

110,249

Equities

4,870

4,893

(23

)

(0.5

)

5,001

Loans

816,665

784,406

32,259

4.1

781,635

Deposits at credit institutions

50,413

65,372

(14,959

)

(22.9

)

51,306

Customer loans

756,465

711,198

45,267

6.4

722,819

Debt securities

9,788

7,836

1,951

24.9

7,510

Held-to-maturity investments

4,405

—

4,405

—

Investments

3,278

3,619

(341

)

(9.4

)

3,471

Intangible assets and property and equipment

27,264

21,431

5,833

27.2

26,109

Goodwill

26,777

27,364

(587

)

(2.1

)

27,548

Other

51,349

49,814

1,535

3.1

51,293

Total assets

1,320,427

1,241,104

79,324

6.4

1,266,296

Liabilities and shareholders’ equity

Trading portfolio

112,461

107,225

5,236

4.9

109,792

Customer deposits

9,693

9,101

592

6.5

5,544

Marketable debt securities

—

197

(197

)

(100.0

)

—

Trading derivatives

80,572

71,858

8,714

12.1

79,048

Other

22,195

26,068

(3,873

)

(14.9

)

25,200

Other financial liabilities at fair value

58,601

62,969

(4,367

)

(6.9

)

62,318

Customer deposits

27,094

35,247

(8,152

)

(23.1

)

33,127

Marketable debt securities

3,352

4,048

(696

)

(17.2

)

3,830

Due to central banks and credit institutions

28,155

23,674

4,481

18.9

25,360

Financial liabilities at amortized cost

1,009,566

939,586

69,980

7.4

961,053

Due to central banks and credit institutions

141,617

106,229

35,388

33.3

122,437

Customer deposits

632,449

601,983

30,466

5.1

608,956

Marketable debt securities

193,905

191,349

2,555

1.3

193,059

Subordinated debt

19,606

17,334

2,272

13.1

17,132

Other financial liabilities

21,990

22,692

(702

)

(3.1

)

19,468

Insurance liabilities

644

1,671

(1,027

)

(61.5

)

713

Provisions

13,775

14,589

(814

)

(5.6

)

15,376

Other liability accounts

26,693

27,041

(348

)

(1.3

)

27,331

Total liabilities

1,221,740

1,153,081

68,659

6.0

1,176,581

Shareholders’ equity

103,307

87,893

15,414

17.5

91,664

Capital stock

7,158

5,994

1,164

19.4

6,292

Reserves

90,924

77,764

13,159

16.9

80,026

Attributable profit to the Group

5,941

4,361

1,580

36.2

5,816

Less: dividends

(716

)

(226

)

(490

)

216.6

(471

)

Equity adjustments by valuation

(14,987

)

(10,568

)

(4,420

)

41.8

(10,858

)

Minority interests

10,367

10,697

(330

)

(3.1

)

8,909

Total equity

98,687

88,023

10,665

12.1

89,714

Total liabilities and equity

1,320,427

1,241,104

79,324

6.4

1,266,296


		FINANCIAL REPORT 2015		JANUARY - SEPTEMBER
		CONSOLIDATED FINANCIAL REPORT

u Group Balance Sheet

First nine months highlights

Negative impact of exchange rates in the third quarter and year-on-year.

In the third quarter, growth in lending and customer funds. The Group’s net loan-to-deposit ratio remained at 116%.

In relation to September 2014 and in constant currency, both loans and funds grew 7%:

•

Lending rose in all countries except Portugal and Spain.

•

Customer funds increased in all countries. Of note were Latin America and the US.

The fully loaded CET1 was 9.85% (+2 b.p. in the quarter). The organic generation (+13 b.p.) was mainly offset by the impact of exchange rates on the valuation of the portfolio available for sale and the rise in treasury stock.

The total capital ratio was 12.75% and the fully loaded leverage ratio 4.7%.

Total business managed and marketed at the end of September stood at €1,479,841 million, of which €1,320,427 million was on balance sheet and the rest mutual and pension funds, and administered portfolios.

•

Negative impact of 4/5 p.p. in the third quarter of exchange rates on the evolution of the balances of customer loans and funds. Also negative in year-on-year terms (-1 p.p. on loans and -3 p.p. on funds).

•

Positive perimeter impact on loans of 2 p.p. in year-on-year terms, mainly in the consumer area due to the acquisition of GE Nordics and Carfinco and implementation of the agreement with PSA in France, the UK and Portugal.

Gross customer loans (excluding repos)

•

Loans increased 1% in constant currency in the third quarter, as follows:

–

Growth of 1% in the UK, US and Santander Consumer Finance, 2% in Poland, 4% in Chile, 5% in Brazil and 6% in Mexico, while Portugal’s balances remained stable. Spain’s lending declined 2% because of strong competition in a market whose stock is still not increasing.

–

Reduction of more than 10% in net lending of Spain Real Estate Activity.

•

Lending was 6% higher than in September 2014. Eliminating the exchange rate impact, growth for the whole Group was 7%:

–

Rises in all the core countries, except Portugal and Spain, whose balances dropped 1%, as these markets continued to deleverage in the last 12 months. Growth was more significant in Latin America and SCF, and more moderate in the UK, Poland and US, the latter slightly affected by the sale of assets.

–

Generally speaking, growth in loans to companies, benefiting from the Advance strategy.

–

As regards Real Estate Activity in Spain, net lending was down 37% year-on-year, in line with the divestment strategy pursued.

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JANUARY - SEPTEMBER		FINANCIAL REPORT 2015
		CONSOLIDATED FINANCIAL REPORT

Marketed and managed customer funds

•

Total funds (deposits without repos and mutual funds) declined 4% in the third quarter (1% rise at constant exchange rates). Mutual funds increased 5% in Brazil and Chile, 4% in Mexico and 1% in the rest of countries. The only exception was Spain (-2%) due to the drop in institutional balances and the impact of markets evolution on mutual funds, as deposits from individuals rose in the quarter.

•

Funds were 4% higher than in September 2014. Excluding the forex impact, customer deposits excluding repos rose 6% and mutual funds 12%. Overall growth was 7%, as follows:

–

Increase of more than 10% in Latin American countries and the US, and 5% in the UK.

–

Spain’s rose 2% and Portugal’s and Poland’s 1%, the latter two with a policy more focused on profitability, following the sharp increase in volumes in 2014.

•

The general strategy to grow in demand deposits and mutual funds continued, with all countries doing so in both items and reducing time deposits.

•

As well as capturing customer deposits, Grupo Santander attaches strategic importance to maintaining a selective issuance policy in international fixed income markets, seeking to adapt the frequency and volume of market operations to each unit’s structural liquidity needs, as well as to the receptiveness of each market.

In the first nine months of 2015:

–

Medium and long-term senior debt issues of €29,889 million, €2,839 million of subordinated debt and €2,703 million of covered bonds.

–

€11,378 million of securitisations placed in the market.

–

€31,152 million of maturities of medium and long-term debt.

–

Hybrid securities were also issued, as commented on in the section on capital.

•

The net loan-to-deposit ratio at the end of September remained at 116%. The ratio of deposits plus medium and long-term funding to lending was 113%, underscoring a comfortable funding structure.

Other balance sheet items

•

Financial assets available for sale amounted to €117,835 million. Compared to September 2014, increases in Spain, UK and US.

•

Held-to-maturity investments amounted to €4,405 million. This amount was fully generated in the third quarter, following the review of portfolios included in financial assets available for sale, whose economic logic made it more appropiate to reclassify them as held-to-maturity investments.

•

Trading derivatives were around €80,000 million, both in assets and liabilities, with year-on-year rises due to changes in interest rate curves and the impact of exchange rates.

•

Goodwill was €26,777 million, lower in the third quarter (-€1,817 million) as well as in the last 12 months (-€587 million). In both cases this was due to the evolution of exchange rates, particularly the Brazilian real.

LOGO


		FINANCIAL REPORT 2015		JANUARY - SEPTEMBER
		CONSOLIDATED FINANCIAL REPORT

•

Lastly, tangible and intangible assets amounted to €27,264 million, €5,833 million more than September 2014. Increases mainly in Spain and the US (the latter due to the exchange rate and to assets associated with leasing business).

Shareholders’ equity and solvency ratios

•

Total shareholders’ equity stood at €88,320 million at the end of September (+14% year-on-year).

•

Eligible equity fully-loaded increased to €74,519 million, due to January’s capital increase of €7,500 million and the year’s profit, largely eroded by the negative evolution of adjustments to equity.

•

The common equity Tier 1 (CET1) ratio fully-loaded was 9.85%, up 2 b.p. in the third quarter, as follows:

–

Organic generation of capital of 13 b.p. due to the ordinary profit generated in the quarter and the evolution of risk-weighted assets.

–

Non-recurring effects with a net negative impact of 11 b.p. mainly due to the evolution of treasury stock and to the impact of the markets’ evolution on the valuation of portfolios classified as available for sale.

•

The total capital ratio was 12.75%, as to the increase in the CET1 was added the favourable impact of the computability of T2 issues in the UK and Chile.

•

From a qualitative standpoint, the Group has solid and appropriate ratios for its business model, balance sheet structure and Grupo Santander’s risk profile.

•

The fully-loaded leverage ratio (as under regulation 2015/621) was 4.7%.

Eligible capital. September 2015

€ million


	Phase-in		Fully loaded

CET1		72,576		57,577

Basic capital		72,576		63,196

Eligible capital		82,842		74,519

Risk-weighted assets		585,816		584,322

CET1 capital ratio		12.39		9.85

T1 capital ratio		12.39		10.82

BIS ratio		14.14		12.75

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JANUARY - SEPTEMBER		FINANCIAL REPORT 2015
		RISK MANAGEMENT

u Risk Management

First nine months highlights

Net entries of non-performing loans were 22% lower year-on-year.

The Group’s NPL ratio was 4.50% (-14 b.p. in the quarter and -78 b.p. in 12 months). Of note were the falls in Spain, the UK and Mexico.

Loan-loss provisions were €7,550 million, 7% lower year-on-year (-8% excluding the exchange rate impact).

The cost of credit continued to improve to 1.26%.

Credit risk management

•

Net entries of non-performing loans in the first nine months, isolating the perimeter and exchange rate effects, were €5,464 million, 22% lower than September 2014 and mainly due to Spain.

•

Bad and doubtful loans amounted to €37,856 million at the end of September, 6% lower than June 2015 and 9% year-on-year (-2% and -6%, respectively, excluding the forex effect). The Group’s NPL ratio was 4.50%, 14 b.p. lower than in the second quarter of 2015 and 78 b.p. below September 2014.

•

Loan-loss provisions stood at €26,918 million, which provided coverage of 71%. It should be remembered that the UK and Spain NPL ratios are affected by the weight of mortgage balances, which require fewer provisions as they have guarantees.

•

The improvement in credit quality is reflected in the reduction in loan-loss provisions (7% below September 2014), and in the consequent improvement in the cost of credit (1.26% at the end of September; 1.52% a year earlier).

The NPL and coverage ratios of the main countries where the Group operates are set out below:

•

Spain’s NPL ratio was 6.61% at the end of September (-30 b.p. in the quarter). This improvement was due to the good evolution of all the portfolios, particularly SMEs and companies, and to the sale of a €130 million portfolio of bad loans. Coverage rose to 48%.

The Real Estate unit in Spain ended September with a NPL ratio of 82% and coverage of 62%. The total coverage ratio, including the balance outstanding, was 59% and coverage of foreclosed assets 54%.

•

Santander Consumer Finance’s NPL ratio was 4.15% (-10 b.p. in the third quarter), due to a good performance in most countries. The coverage ratio was 107% (+2 b.p. over June 2015).

•

Poland’s NPL ratio was 7.14% (+7 b.p. in the quarter). Good evolution over 12 months (-28 b.p.) due to the rise in lending and containment of the NPLs of individual borrowers as well as SMEs and companies. Coverage remained at 63%.

•

Portugal’s NPL ratio was 8.86% (+6 b.p. over June 2015), due to the classification as a bad debt of a wholesale banking operation, as the rest of portfolios improved. The coverage ratio was 56% (+2 p.p.).

•

In the UK, the NPL ratio was 1.51% (-10 b.p. in the third quarter). The improvement was due to the good performance of companies and consumer credit in an environment of tough competition and very low interest rates. The coverage ratio was unchanged at 40%.

Credit risk management*

€ million


	30.09.15		30.09.14		Var. %			31.12.14

Non-performing loans		37,856		41,727		(9.3	)		41,709

NPL ratio (%)		4.50		5.28					5.19

Loan-loss allowances		26,918		28,174		(4.5	)		28,046

Specific		18,416		22,156		(16.9	)		21,784

Collective		8,502		6,018		41.3			6,262

Coverage ratio (%)		71.1		67.5					67.2

Cost of credit (%) **		1.26		1.52					1.43

(*)	Excluding country-risk

(**)	12 months net loan-loss provisions / average lending

Note: NPL ratio: Non-performing loans / computable assets

LOGO


		FINANCIAL REPORT 2015		JANUARY - SEPTEMBER
		RISK MANAGEMENT

Non-performing loans by quarter

€ million


	2014												2015

	1Q			2Q			3Q			4Q			1Q			2Q			3Q

Balance at beginning of period		42,420			42,300			42,334			41,727			41,709			41,919			40,273

Net entries		2,536			2,535			1,959			2,623			2,017			1,315			2,132

Increase in scope of consolidation		148			—			—			763			54			1			—

Exchange differences		96			293			463			(299	)		853			(36	)		(1,849	)

Write-offs		(2,900	)		(2,793	)		(3,029	)		(3,105	)		(2,715	)		(2,925	)		(2,699	)

Balance at period-end		42,300			42,334			41,727			41,709			41,919			40,273			37,856

•

Brazil’s NPL ratio was 5.30% (+17 b.p. in the quarter). The increase was due to companies and was in line with the sector in an environment of falling GDP. The coverage ratio was 96%.

•

Mexico’s NPL ratio was 3.54% (-27 b.p. in the third quarter). This fall was due to better management of recoveries in individual borrowers and SGCB, as well as growth in lending. The coverage ratio was 93% (+5 p.p. in the third quarter).

•

Chile’s NPL ratio was 5.60% (-13 b.p. in the quarter). The fall was due to the good performance of SMEs and companies. Coverage was 53% (+1 p.p.).

•

In the US, the NPL ratio remained stable at 2.20% in the quarter and the coverage ratio dropped 6 p.p. to 218%.

Santander Bank’s NPL ratio was to 1.15% (-4 b.p. over June 2015). Continued good performance of retail, due to the containment of NPL entries, and in companies due to more sales of portfolios. The coverage ratio was 6 p.p. lower at 118%.

Santander Consumer USA’s NPL ratio was 9 b.p. higher over the second quarter at 3.73%. Coverage remained very high at 326%.

Structural FX

•

As regards structural exchange rate risk, Santander maintains a high fully loaded core capital coverage level of around 100% in order to protect itself from currency movements.

Market risk

•

The risk of trading activity in the third quarter of Global Corporate Banking, measured in daily VaR terms at 99%, fluctuated between €10.3 million and €19.1 million. These figures were low both in relative terms compared to our competitors as well as in relation to the Group’s balance sheet and activity.

•

Of note was the upward trend in VaR in September to a high for the quarter, due to increased interest rate and exchange rate exposures and volatility, mainly in Brazil and Spain.

•

In addition, there are other positions classified for accounting purposes as trading. The total VaR of trading of this accounting perimeter at the end of September was €20.2 million.

LOGO

Trading portfolios*. VaR by region

€ million


	2015				2014
Third quarter	Average		Latest		Average

Total		13.9		19.1		18.7

Europe		11.6		12.8		11.1

USA and Asia		0.8		0.9		0.7

Latin America		8.4		9.7		14.9

Global activities		1.5		0.9		2.0

(*)	Activity performance in Global Corporate Banking financial markerts

Trading portfolios*. VaR by market factor

€ million


Third quarter	Min			Avg			Max			Last

VaR total		10.3			13.9			19.1			19.1

Diversification effect		(7.6	)		(10.9	)		(16.5	)		(15.2	)

Interest rate VaR		11.9			14.1			20.0			15.6

Equity VaR		1.1			1.9			3.8			1.7

FX VaR		1.6			4.8			14.0			14.0

Credit spreads VaR		2.2			4.0			5.4			2.9

Commodities VaR		0.0			0.1			0.3			0.1

(*)	Activity performance in Global Corporate Banking financial markerts


JANUARY - SEPTEMBER		FINANCIAL REPORT 2015
		BUSINESS INFORMATION

Description of the businesses

Some changes were made in the third quarter of 2015 to the criteria applied and to the composition of some units, in order to make the Group more transparent, facilitate analysis of all business units and enhance the value of the activity developed by the corporation. The changes of criteria are:

•

Internal transfer rates (ITR) individualised by transaction were applied in Spain to calculate the financial margin, so that the balance sheet was matched in terms of interest rate risk. The counterpart of these results was the Corporate Centre. As of now, Spain is homogenised with the rest of the Group’s countries and units, and all the results of financial management of the balance sheet, including the aforementioned interest rate risk, will be reported in this unit.

•

The cost of AT1 issued by Brazil and Mexico to replace CET1 was assumed by the Corporate Centre as they were operations to optimise capital in these units. This cost is now recorded by each country.

•

The scope of costs charged to units from the Corporate Centre is increased, in accordance with the new structure.

In addition, the Spain Real Estate unit is created, which groups together the former unit of real estate activities in Spain in run-off and other real estate assets, such as the stake in Metrovacesa and those of the former real estate fund previously included in the Corporate Centre.

The Latin America and US areas are also changed. The units of Banco Santander International and the New York branch, which were in the Latin America area, are now included in the US.

The results of the four quarters of 2014 and those of the first two quarters of 2015 of the business units and of the Corporate Centre have been re-stated in accordance with the new criteria. This mainly affected net interest income, gains on financial transactions and operating expenses. All these changes do not affect the figures of the consolidated Group, which remain unchanged.

The financial statements of each business segment have been drawn up by aggregating the Group’s basic operating units. The information relates to both the accounting data of the units integrated in each segment, as well as that provided by the management information systems. In all cases, the same general principles as those used in the Group are applied.

The operating business areas are structured into two levels:

Geographic businesses. The operating units are segmented by geographical areas. This coincides with the Group’s first level of management and reflects Santander’s positioning in the world’s three main currency areas (euro, sterling and dollar). The segments reported on are:

•

Continental Europe. This covers all businesses in the area. Detailed financial information is provided on Spain, Portugal, Poland and Santander Consumer Finance (which incorporates all the region’s business, including the three countries mentioned herewith).

•

United Kingdom. This includes the businesses developed by the Group’s various units and branches in the country.

•

Latin America. This embraces all the Group’s financial activities conducted via its banks and subsidiaries in the region. The financial statements of Brazil, Mexico and Chile are set out.

•

United States. Includes the holding (SHUSA) and the businesses of Santander Bank, Santander Consumer USA, Banco Santander Puerto Rico, the specialised unit of Banco Santander International and the New York branch.

Global businesses. The activity of the operating units is distributed by the type of business: Retail Banking, Santander Global Corporate Banking and the Spain Real Estate Unit.

•

Retail Banking. This covers all customer banking businesses, including consumer finance, except those of corporate banking, which are managed through SGCB. The results of the hedging positions in each country are also included, conducted within the sphere of each one’s Assets and Liabilities Committee.

•

Santander Global Corporate Banking (SGCB). This business reflects the revenues from global corporate banking, investment banking and markets worldwide including treasuries managed globally (always after the appropriate distribution with Retail Banking customers), as well as equities business.

In addition to these operating units, which report by geographic area and by businesses, the Group continues to maintain the area of Corporate Centre. This area incorporates the centralised activities relating to equity stakes in financial companies, financial management of the structural exchange rate position, assumed within the sphere of the Group’s Assets and Liabilities Committee, as well as management of liquidity and of shareholders’ equity through issues.

As the Group’s holding entity, this area manages all capital and reserves and allocations of capital and liquidity with the rest of businesses. It also incorporates amortisation of goodwill but not the costs related to the Group’s central services (charged to the areas), except for corporate and institutional expenses related to the Group’s functioning.

The figures of the Group’s various units have been drawn up in accordance with these criteria, and so do not coincide individually with those published by each unit.


		FINANCIAL REPORT 2015		JANUARY - SEPTEMBER
		BUSINESS INFORMATION BY GEOGRAPHY


Net operating income				o/ 2Q’15									o/ 9M’14

€ million	3Q’15			%			% w/o FX			9M’15			%			% w/o FX

Continental Europe		1,564			1.6			2.4			4,843			9.5			9.3

o/w: Spain		708			6.2			6.2			2,268			(1.9	)		(1.9	)

Santander Consumer Finance		575			4.8			4.8			1,662			28.7			28.7

Poland		162			(11.2	)		(8.8	)		534			(8.2	)		(8.6	)

Portugal		102			(8.8	)		(8.8	)		328			0.9			0.9

United Kingdom		761			(2.8	)		(3.5	)		2,271			16.2			4.1

Latin America		2,667			(8.8	)		2.3			8,392			4.3			10.4

o/w: Brazil		1,600			(12.6	)		0.7			5,251			(0.8	)		11.6

Mexico		467			(6.6	)		0.6			1,431			11.5			8.7

Chile		364			(1.7	)		7.5			1,049			10.6			3.5

USA		1,180			(7.1	)		(6.6	)		3,622			31.7			8.2

Operating areas		6,172			(5.3	)		(0.1	)		19,127			11.4			9.0

Corporate Activities		(199	)		(39.4	)		(39.4	)		(898	)		109.9			109.9

Total Group		5,974			(3.5	)		2.0			18,229			8.8			6.4


Ordinary attributable profit to the Group				o/ 2Q’15									o/ 9M’14

€ million	3Q’15			%			% w/o FX			9M’15			%			% w/o FX

Continental Europe		625			11.6			12.7			1,825			74.9			73.9

o/w: Spain		311			33.9			33.9			883			64.2			64.2

Santander Consumer Finance		242			0.3			0.3			702			27.6			27.6

Poland		73			(10.7	)		(8.2	)		243			(7.0	)		(7.4	)

Portugal		77			55.1			55.1			181			60.5			60.5

United Kingdom		480			(12.0	)		(12.8	)		1,496			27.9			14.5

Latin America		783			(10.6	)		(0.4	)		2,500			18.3			22.0

o/w: Brazil		385			(14.8	)		(1.4	)		1,315			22.1			37.4

Mexico		143			(10.6	)		(3.3	)		456			5.0			2.4

Chile		125			(15.2	)		(7.1	)		378			11.5			4.4

USA		186			(14.3	)		(13.7	)		660			10.6			(9.1	)

Operating areas		2,074			(5.7	)		(1.4	)		6,481			31.6			26.3

Corporate Activities		(394	)		(19.5	)		(19.5	)		(1,375	)		144.3			144.3

Total Group		1,680			(1.7	)		3.8			5,106			17.1			11.8

(*) In 2Q’15 and 9M’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

Customer loans w/o repos				o/ 2Q’15									o/ 9M’14

€ million	3Q’15			%			% w/o FX			9M’15			%			% w/o FX

Continental Europe		290,151			(1.0	)		(0.6	)		290,151			3.9			4.3

o/w: Spain		158,181			(2.0	)		(2.0	)		158,181			(1.3	)		(1.3	)

Santander Consumer Finance		73,329			0.8			0.8			73,329			19.9			19.9

Poland		19,374			0.8			2.0			19,374			6.8			8.6

Portugal		24,292			(0.0	)		(0.0	)		24,292			(0.8	)		(0.8	)

United Kingdom		277,033			(2.4	)		1.4			277,033			10.7			5.2

Latin America		134,723			(10.7	)		5.4			134,723			(5.0	)		18.4

o/w: Brazil		61,628			(18.8	)		4.8			61,628			(20.2	)		16.0

Mexico		28,757			(1.9	)		6.2			28,757			8.6			21.3

Chile		32,800			(5.5	)		3.7			32,800			9.5			13.7

USA		84,853			1.3			1.4			84,853			21.1			7.8

Operating areas		786,760			(3.0	)		1.3			786,760			6.1			7.2

Total Group		790,570			(3.2	)		1.1			790,570			6.0			7.1


Funds (deposits w/o repos + mutual funds)				o/ 2Q’15									o/ 9M’14

€ million	3Q’15			%			% w/o FX			9M’15			%			% w/o FX

Continental Europe		308,581			(1.2	)		(1.0	)		308,581			2.4			2.6

o/w: Spain		222,193			(2.2	)		(2.2	)		222,193			1.8			1.8

Santander Consumer Finance		31,790			(0.1	)		(0.1	)		31,790			4.0			4.0

Poland		23,812			(0.4	)		0.8			23,812			(0.1	)		1.5

Portugal		25,580			0.9			0.9			25,580			0.8			0.8

United Kingdom		226,596			(2.7	)		1.0			226,596			11.0			5.5

Latin America		152,515			(11.3	)		4.8			152,515			(8.0	)		15.4

o/w: Brazil		72,596			(18.8	)		4.9			72,596			(21.2	)		14.5

Mexico		36,520			(4.3	)		3.6			36,520			0.4			12.1

Chile		28,614			(4.1	)		5.3			28,614			9.2			13.4

USA		65,905			0.7			0.8			65,905			25.1			11.4

Operating areas		753,597			(3.7	)		0.9			753,597			4.1			6.6

Total Group		755,592			(3.7	)		0.9			755,592			4.2			6.7


JANUARY - SEPTEMBER		FINANCIAL REPORT 2015
		BUSINESS INFORMATION BY GEOGRAPHY

u Main units of Continental Europe. Spain

First nine months highlights

Attributable profit of €883 million, 64% more than in the first nine months of 2014, thanks to a significant improvement in loan-loss provisions and a good performance of costs.

Engaged customer strategy via the 1|2|3 account. More than 500,000 new accounts opened since its launch.

Strengthened governance model, aligned with the rest of the Group’s subsidiaries, and the creation of Santander Spain’s board.

Positive evolution in new lending to individuals and SMEs, the result of the strategies implemented.

Strategy and Activity

•

The strategy for individual customers is being developed via the 1|2|3 account, whose main focus is customer engagement.

More than 500,000 accounts were opened by the end of September, over 140,000 new payrolls were attracted and the rise in loyal customers resulted in over 250,000 new debit and credit cards. Moreover, customers meeting the 1|2|3 Mundo requirements received a first pack of bank shares in October.

•

In order to be the reference bank for SMEs, we continued to support the investment plans of our customers and all their financial and non-financial needs (training, internationalisation, digitalisation). In addition, value-added products are being structurally improved (international business, factoring, confirming, brokerage, leasing and renting), key elements for increasing their degree of loyalty.

•

Loans to SMEs and micro firms amounted to €9,421 million (+22%) in the first nine months, and the pace of growth to individuals (+34%) and large companies (+14%) was maintained, although this is still not reflected in the stock which was 1% lower than in September 2014.

•

Funds rose 2% year-on-year, spurred by current accounts (+15%) and mutual funds (+6%). Fall of 2% in the third quarter linked to institutional balances, as those of individuals increased.

•

In order to increase customer satisfaction, a programme was launched to improve operational excellence based on digitalisation, the review of commercial processes and adapting various channels to the experience desired by the customer (mobile, branches, website, ATMs, etc).

Results

The third quarter attributable profit was 34% higher than the second quarter at €311 million. This was mainly the result of a normalisation of levels of gains on financial transactions and lower provisions.

The first nine months profit increased 64% year-on-year to €883 million.

•

Gross income declined a little over 2014 in an environment of low interest rates and strong competition in lending.

•

Operating expenses fell 2%, thanks to the synergies achieved with the optimization plans implemented.

•

Loan-loss provisions were down 41% year-on-year, underscoring the continued normalization in a more favourable cycle, reflected in negative NPL entries.

•

The NPL ratio was 6.61% (-96 b.p. year-on-year). The coverage ratio increased by 2 p.p. to 48%.

•

The cost of credit improved to 0.71% from 1.21% in the first nine months of 2014.

Spain. € million


			o/ 2Q’15					o/ 9M’14

	3Q’15		%			9M’15		%

Gross income		1,570		3.2			4,842		(2.1	)

Net operating income		708		6.2			2,268		(1.9	)

Attributable profit to the Group		311		33.9			883		64.2

Loans w/o repos		158,181		(2.0	)		158,181		(1.3	)

Funds		222,193		(2.2	)		222,193		1.8

Efficiency ratio (with amortisations) (%)		54.9		(1.3	)		53.2		(0.1	)

NPL ratio (%)		6.61		(0.30	)		6.61		(0.96	)

NPL coverage (%)		47.8		1.0			47.8		2.3


		FINANCIAL REPORT 2015		JANUARY - SEPTEMBER
		BUSINESS INFORMATION BY GEOGRAPHY

u Main units of Continental Europe. Santander Consumer Finance

First nine months highlights

The agreement with PSA Finance and the integrations in the Nordic countries boost the area’s growth potential.

Year-on-year growth in lending in the core countries: Spain, Germany and Nordic countries.

Attributable profit of €702 million in the first nine months, 28% more than in the same period of 2014.

Good performance of gross income, which grew well above costs and provisions.

Strategy and Activity

•

The units of Santander Consumer Finance (SCF) in continental Europe conducted their business in an environment of a recovery in consumption and car sales (+9% year-on-year in our footprint).

•

The agreement with Banque PSA Finance consolidates our auto finance leadership. As regards direct business, the integration of GE Nordics increased the weight of this product in the business mix and strengthened profitable and diversified growth.

•

The focuses of management this year are: progress in integrating the agreements with PSA and drive new lending and cross selling on the basis of each market, backed by the brand agreements and exploiting competitive advantages.

•

SCF continued to gain market share, supported by a business model with a wide geographic diversification, critical mass in key products, better efficiency than its peers and a common system of risks and recoveries.

•

New lending increased 24% year-on-year (+9% on a like-for-like basis), fuelled by direct credit and cards (+21%) and new auto finance (+40%). Of note were Spain (+27%) and the Nordic countries (+26%), while Germany was up 4%.

•

Customer lending grew 20% year-on-year, mostly due to agreements and acquisitions.

•

Stable customer deposits (around €32,000 million), something that marks out Santander from its competitors, and greater recourse to wholesale funding (€6,721 million issued in the first nine months, via senior debt issues and securitisations).

•

Customer deposits and medium- and long-term issues-securitisations placed in the market covered 74% of net lending in the first nine months.

Results

Third quarter attributable profit of €242 million, similar to the second quarter.

First nine months profit of €702 million (+28% year-on-year), benefiting from the perimeter impact of units incorporated (GE’s business in Nordic countries and Carfinco in Canada) and the PSA agreement.

•

Gross income increased 25%, due to growth in net interest income that was stronger than the rise in costs (+20%), improving the efficiency ratio by 1.7 p.p. to 44.0%.

•

Provisions increased 10% (well below the rise in gross income), partly due to the perimeter and partly to the release of funds in some units in the first quarter of 2014.

•

The NPL ratio (4.15%) and coverage (107%) improved and are excellent for the standards of consumer business.

•

Of note by units was the good performance of the Nordic countries’ profits (+62%), Germany (+36%) and Spain (+9%). Italy’s and Portugal’s also rose, and Poland registered the only fall, due to reduced interest rates and the maximum limit set by the Lombard rate.

Santander Consumer Finance. € million


			o/ 2Q’15					o/ 9M’14

	3Q’15		%			9M’15		%

Gross income		1,018		2.7			2,968		24.7

Net operating income		575		4.8			1,662		28.7

Attributable profit to the Group		242		0.3			702		27.6

Loans w/o repos		73,329		0.8			73,329		19.9

Funds		31,790		(0.1	)		31,790		4.0

Efficiency ratio (with amortisations) (%)		43.5		(1.1	)		44.0		(1.7	)

NPL ratio (%)		4.15		(0.10	)		4.15		0.18

NPL coverage (%)		107.2		2.3			107.2		0.8


JANUARY - SEPTEMBER		FINANCIAL REPORT 2015
		BUSINESS INFORMATION BY GEOGRAPHY

u Main units of Continental Europe. Poland (changes in local currency)

First nine months highlights

Year-on-year and quarter-on-quarter rise in lending, with positive expectations for the economy.

Focus on large companies, SMEs, leasing and mortgages. Santander continues to be the market leader in cards, mobile and online banking.

In deposits, strategy to manage spreads following the successful commercial strategy of 2014 to drive deposits growth.

Revenues and costs’ management in an environment of lower interest rates.

Strategy and Activity

•

The Bank continued the Next Generation Bank strategic programme to develop the Bank at all levels. Its main goal is to become the bank of choice.

•

We continued to be the market leader in cards, mobile and online banking, marketing various products and initiatives. The BZWBK 24 mobile channel app is regarded as the best in Poland and the second best in Europe, according to the 2015 Global Mobile Banking Functionality Benchmark drawn up by the consultancy Forrester Research and was awarded Best Mobile App at the 2015 Emerging Payments Awards.

•

Loans rose 9% year-on-year, backed by the Bank’s target segments: SMEs (+12%), companies (+8%), leasing (+19%) and factoring (+30%). Lending to individual customers rose 9% (mortgages +9%, cash loans +8% and credit cards +17%).

•

In funds, and following the sharp increase underpinned by the successful commercial campaigns in the second half of 2014, the strategy in 2015 was more centred on management of spreads. Deposits grew 2% year-on-year (+28% from companies) and stable deposits from individuals.

•

This evolution maintained our solid funding structure (net loan-to-deposit ratio of 91%).

Results

Third quarter attributable profit of €73 million, €7 million less in constant euros than in the second quarter, due to the seasonal collection of dividends (€22 million in the second quarter and zero in the third). On the other hand, net interest income rose after falling for several quarters.

The first nine months profit of €243 million was 7% lower than in the same period of 2014, as follows:

•

Gross income fell 4% year-on-year due to the net impact of the following:

Reduction in net interest income and fee income. The first was due to lower interest rates, which particularly affected consumer interest rates because of the maximum set by the Lombard rate, and the second, because of tougher regulations that mainly hit card business.

On the other hand, gains on financial transactions rose sharply backed by a strategy of interest rate hedging to offset the drop in net interest income.

•

Operating expenses increased 2%, partly due to the new variable remuneration plan and partly to higher regulatory costs.

•

Loan-loss provisions were 4% lower and lending higher. The NPL ratio was 29 b.p. lower than in September 2014 at 7.14%.

•

Our bank in Poland continued to produce better-quality results than its peers, according to the latest data available, underpinned by the success of the commercial strategy and increased productivity.

Poland. € million


			o/ 2Q’15								o/ 9M’14

	3Q’15		%			% w/o FX			9M’15		%			% w/o FX

Gross income		309		(8.1	)		(5.7	)		985		(3.7	)		(4.2	)

Net operating income		162		(11.2	)		(8.8	)		534		(8.2	)		(8.6	)

Attributable profit to the Group		73		(10.7	)		(8.2	)		243		(7.0	)		(7.4	)

Loans w/o repos		19,374		0.8			2.0			19,374		6.8			8.6

Funds		23,812		(0.4	)		0.8			23,812		(0.1	)		1.5

Efficiency ratio (with amortisations) (%)		47.5		1.8						45.8		2.6

NPL ratio (%)		7.14		0.07						7.14		(0.29	)

NPL coverage (%)		63.1		(0.4	)					63.1		(2.7	)


		FINANCIAL REPORT 2015		JANUARY - SEPTEMBER
		BUSINESS INFORMATION BY GEOGRAPHY

u Main units of Continental Europe. Portugal

First nine months highlights

Commercial actions to attract individual customers and companies.

Market share gains in lending and deposits.

Attributable profit was 61% higher year-on-year, mainly due to higher net interest income and lower needs for provisions.

Strategy and Activity

•

The Bank’s strategy continued to focus on managing spreads on loans, gaining more market share, particularly in companies, controlling NPLs and improving efficiency.

•

Of note in the first nine months, and among the main commercial actions, was the launch of the Mundo 1|2|3 account in order to grow in the market’s medium segment. Since its launch on March 2, the number of 1|2|3 customers has grown to around 60,000 (40,000 in June).

•

The Bank is still very focused on attracting new company clients, backed by the Santander Advance programme which has become a key tool (7,450 accounts opened for shops and SMEs since its launch at the end of 2014).

•

These strategies are reflected in a slower decline in lending (-1% year-on-year), and in a rise in credit to companies compared to a fall for the market as a whole. Of note in 2015 were market shares in new lending of 15.0% in companies and 17.2% in mortgages.

•

Funds rose slightly, within the strategy of increasing demand deposits (+18%) and mutual funds (+20%), while time deposits declined 5%. This produced a further improvement in the cost of deposits.

•

This performance enabled the increase in the market share of the stock, around half a percentage point on loans and deposits.

Results

The third quarter attributable profit was €77 million, well above the second quarter’s €49 million, favourably impacted by the gains from the sale of the stake in Banco Caixa Geral Totta Angola (€39 million before tax).

The first nine months profit was 61% higher year-on-year at €181 million. This was due to the good performance of the main lines of the income statement:

•

In gross income, net interest income increased due to the better cost of funding, partly offset by the fall in fee income and gains on financial transactions.

•

Costs edged down (-0.2%), due to the commercial network’s optimization in accordance with the business environment.

•

Loan-loss provisions were 37% lower and the cost of credit improved to 0.35%. In local criteria, the NPL and coverage ratios continued to be better than the system’s averages.

•

And the result of the sale of the stake already commented on.

Portugal. € million


			o/ 2Q’15					o/ 9M’14

	3Q’15		%			9M’15		%

Gross income		226		(3.4	)		698		0.3

Net operating income		102		(8.8	)		328		0.9

Attributable profit to the Group		77		55.1			181		60.5

Loans w/o repos		24,292		(0.0	)		24,292		(0.8	)

Funds		25,580		0.9			25,580		0.8

Efficiency ratio (with amortisations) (%)		54.9		2.6			52.9		(0.3	)

NPL ratio (%)		8.86		0.06			8.86		0.37

NPL coverage (%)		56.2		2.0			56.2		2.3


JANUARY - SEPTEMBER		FINANCIAL REPORT 2015
		BUSINESS INFORMATION BY GEOGRAPHY

u United Kingdom (changes in sterling)

First nine months highlights

Strong business flows in both retail and corporates, with growth in current account and mortgages as well in corporate lending.

Attributable profit up 14% year-on-year, driven by net interest income and drop in provisions.

Ongoing investment, to grow the business and underpin future efficiency improvement.

The 1/2/3 World customers continued to grow, with improved customer loyalty, activity levels and risk profile.

Strategy and Activity

•

Lending increased 5% compared to September 2014, largely due to corporate lending (+12%), mortgages (+2%) and unsecured consumer and vehicle finance lending (+45%). The PSA Finance UK limited joint venture completed in February 2015.

•

New gross mortgage lending was £19,600 million, including £3,500 million to first time buyers. Growth is expected to be in line with the market for the remainder of the year.

•

Support for UK businesses continued despite a contracting market, with lending to corporates up 12% year-on-year. This performance is underpinned by the broader product suite and extended footprint now in place.

•

Strong growth in customer deposits (+6% over September 2014) was driven by increased current accounts which have grown by £1bn per month since end 2012 (+34% over September 2014). Corporate current account volumes rose by 27%.

•

1/2/3 World customers increased to 4.6 million, up 1.3 million in the last 12 months and with 95% of 1I2I3 current account customers having their primary bank account with us. Santander UK remained first choice for current account switchers since September 2013.

•

Significant improvement in customer satisfaction over the last three years, with continued focus on further improvement.

•

Santander UK is focused on maintaining a strong balance sheet. At the end of September 2015, the CRD IV end point Common Equity Tier 1 capital ratio stood at 11.7% and leverage ratio improved to 4.1% from 3.8% in December 2014.

Results

The third quarter attributable profit of £343 million, 13% lower than the second quarter, largely as a reduction in net fee income of the Global Corporate Banking segment and an additional £43m conduct remediation provision relating to wealth and investment products.

Attributable profit in the first nine months of £1,087 million (+14% year-on-year) increased due to higher net interest income and lower loan loss provisions:

•

Net interest income rose 6% year-on-year, underpinned by margin improvements and higher volumes. Net interest income / average customer assets improved to 1.84% in the first nine months of 2015, from 1.81% in the same period of 2014.

•

Operating expenses increased as a result of investment in business growth, and the continued enhancements to our digital channels. These strategic investments underpin future efficiency improvements.

•

Loan-loss provisions fell 74%, with improved credit quality across the loan portfolios, conservative loan-to-value criteria, and supported by a benign economic environment. In addition, in the third quarter of 2015 provisions were released related to portfolio disposals and improvements in the credit quality of the mortgage book.

United Kingdom. € million


			o/ 2Q’15								o/ 9M’14

	3Q’15		%			% w/o FX			9M’15		%			% w/o FX

Gross income		1,605		(1.3	)		(2.0	)		4,781		16.6			4.4

Net operating income		761		(2.8	)		(3.5	)		2,271		16.2			4.1

Attributable profit to the Group		480		(12.0	)		(12.8	)		1,496		27.9			14.5

Loans w/o repos		277,033		(2.4	)		1.4			277,033		10.7			5.2

Funds		226,596		(2.7	)		1.0			226,596		11.0			5.5

Efficiency ratio (with amortisations) (%)		52.6		0.7						52.5		0.1

NPL ratio (%)		1.51		(0.10	)					1.51		(0.29	)

NPL coverage (%)		39.6		(0.7	)					39.6		(3.8	)


		FINANCIAL REPORT 2015		JANUARY - SEPTEMBER
		BUSINESS INFORMATION BY GEOGRAPHY

u Main units of Latin America. Brazil (changes in local currency)

First nine months highlights

Strategy to boost the number of customers, their engagement and more sustainable revenues with lower risk.

Positive revenues trend, with double-digit year-on-year growth in loans and funds.

Third quarter profit of €385 million. Ordinary profit for the first nine months was 37% higher year-on-year due to more revenues and control of costs.

Additionally, in the second quarter the Group recorded attributable profit of €835 million, due to the net result of the reversal of tax liabilities.

Strategy and Activity

•

The strategy continued to focus on making the bank simpler, more modern and a better experience for our customers. Of note in the third quarter were:

Relaunch of the Van Gogh segment for medium-high income clients, with a competitive offer of products, services, customer attention and a financial focus adjusted to this segment.

Strong campaign – Vale a Pena Ser Digital - to digitalise customers. As a result, new mobile banking and the simplification onboarding process with the “boas vindas” welcome pack are reflected in a digital customer increase.

We continued to make progress in transformation processes: commercial model (CERTO); processes of opening of accounts with delivery of cards and PIN the same day; digital channels that are simpler and more accessible; strengthening of acquiring activity; drive in payroll business, following the link up with Banco Bonsucesso, and consolidation of the financial and non-financial offer for SMEs, following the launch of Santander Negocios y Empresas.

•

Lending rose 16% year-on-year and 5% in the third quarter. In both cases, impact of the exchange rate on dollar portfolios, and perimeter impact on year-on-year comparison from the entry of Bonsucesso. Excluding this, +7% year-on-year and +1% in the quarter.

•

Strong year-on-year growth in lending to companies and big companies (+31%, partly aided by balances in dollars) and mortgages for individual borrowers (+28%). Improved trend in credit to SMEs (+7% year-on-year).

•

Funds grew 15%, with a good performance of mutual funds (+20%), time deposits (+10%) and demand deposits (+8%).

Results

The third quarter profit was €385 million, affected by the real’s depreciation (-1% in constant euros). Of note was the growth in net interest income and fee income, a lower tax charge and more loan-loss provisions due to the small rise in non-performing loans (mainly in companies), in line with the sector’s trend.

The first nine months ordinary profit (excluding the reversal of tax liabilities in the second quarter) was €1,315 million (+37% y-o-y).

•

Gross income rose 9%, thanks to a good evolution of net interest income (+8%), which increased for the fourth quarter running, and fee income (+10%). Of note were the revenues from cards (acquiring), insurance and foreign trade.

•

Operating expenses increased 5% (inflation of 9.5% in September). In real terms and on a like-for-like basis, they fell 6%, reflecting the efforts made in prior years to improve efficiency and productivity.

•

Loan-loss provisions declined 1%, as a result of selective growth of the portfolio (profitability/risk mix), which was reflected in the year-on-year improvement in credit quality indicators: the cost of credit dropped 74 b.p. to 4.4% and the NPL ratio fell 34 b.p. to 5.30%.

Brazil. € million


			o/ 2Q’15								o/ 9M’14

	3Q’15		%			% w/o FX			9M’15		%			% w/o FX

Gross income		2,656		(10.9	)		2.5			8,643		(3.3	)		8.8

Net operating income		1,600		(12.6	)		0.7			5,251		(0.8	)		11.6

Ordinary attributable profit to the Group		385		(14.8	)		(1.4	)		1,315		22.1			37.4

Loans w/o repos		61,628		(18.8	)		4.8			61,628		(20.2	)		16.0

Funds		72,596		(18.8	)		4.9			72,596		(21.2	)		14.5

Efficiency ratio (with amortisations) (%)		39.7		1.1						39.3		(1.5	)

NPL ratio (%)		5.30		0.17						5.30		(0.34	)

NPL coverage (%)		96.0		0.1						96.0		4.6


JANUARY - SEPTEMBER		FINANCIAL REPORT 2015
		BUSINESS INFORMATION BY GEOGRAPHY

u Main units of Latin America. Mexico (changes in local currency)

First nine months highlights

The commercial strategy continued to reflect growth in business volumes and market share gains.

Focus on the most profitable segments (Select, SMEs, companies) and on service quality.

Pre-tax profit rose 7% year-on-year, mainly driven by gross income.

Strategy and Activity

•

Lending increased 21% year-on-year and deposits without repos 16%. Growth benefited from the greater installed capacity, combined with improvements in segmentation of customers and sales platforms.

•

Improved offer for SMEs, new funding support for young entrepreneurs and businesswomen.

•

In mortgages, improved processes with the new online assessment tool. In addition, new offers were launched for home developers and we participated in the purchase of INFONAVIT portfolios (Instituto del Fondo Nacional de la Vivienda para los Trabajadores)

•

In companies and institutions, we consolidated a new commercial system via our specialised customer relationship management (CRM) Neo Júpiter BEI. There are also new commercial initiatives focusing on the attraction and penetration of the automotive sector.

•

All of the above steps fuelled lending (+21%). Consumer credit was up 33% year-on-year and continued to notch up record months. Loans to SMEs increased 24%, mortgages (+14%) and companies (+22%), while credit card loans accelerated in the third quarter (+9%), reflecting the focus and commercial effort in a market that did not grow in year-on-year terms.

•

Deposits grew and their structure improved, as the demand deposits of individuals were up 22%. Mutual funds increased 5% and insurance business strengthened with the broader array of products and new digital marketing and customer attention platforms.

•

Lastly, multi-channel activity continued to be fostered (119 new ATMs in the third quarter, mobile and online banking initiatives) and development of strategic alliances with companies, which enabled us to expand our basic banking services via a network of 17,000 shops.

Results

The first nine months pre-tax profit increased 7%. After deducting taxes (tax rate of 22%, and 20% in September 2014) and minority interests, attributable profit was €456 million (+2% year-on-year).

•

Gross income rose 7% year-on-year. Net interest income was 13% higher due to further growth in lending, which offset interest rates still at very low levels. Fee income increased 3%, notably from insurance and transactions. Gains on financial transactions, on the other hand, declined 28% because of the persistently lacklustre markets.

•

Costs grew 6% year-on-year due to the greater installed capacity and new commercial projects to increase attraction and penetration.

•

Loan-loss provisions increased 11%, due to the faster rise in lending and the cost of credit improved by 39 b.p. year-on-year.

Profit was 3% lower than the second quarter, due to higher provisions (lending up 6%), with stable revenues and costs.

Mexico. € million


			o/ 2Q’15								o/ 9M’14

	3Q’15		%			% w/o FX			9M’15		%			% w/o FX

Gross income		794		(7.0	)		0.4			2,467		10.2			7.4

Net operating income		467		(6.6	)		0.6			1,431		11.5			8.7

Attributable profit to the Group		143		(10.6	)		(3.3	)		456		5.0			2.4

Loans w/o repos		28,757		(1.9	)		6.2			28,757		8.6			21.3

Funds		36,520		(4.3	)		3.6			36,520		0.4			12.1

Efficiency ratio (with amortisations) (%)		41.2		(0.2	)					42.0		(0.7	)

NPL ratio (%)		3.54		(0.27	)					3.54		(0.20	)

NPL coverage (%)		93.0		5.5						93.0		2.9


		FINANCIAL REPORT 2015		JANUARY - SEPTEMBER
		BUSINESS INFORMATION BY GEOGRAPHY

u Main units of Latin America. Chile (changes in local currency)

First nine months highlights

The commercial transformation was reflected in greater activity in the target segments of lending and funds.

Increase in loyal customers. Customer attention quality maintained and migration to Select.

Attributable profit of €378 million in the first nine months, 4% higher and improving year-on-year trend quarter after quarter.

Strategy and Activity

•

Santander is the leading bank in Chile in terms of assets and customers and has a marked retail focus (individuals and SMEs). The Group maintains its strategy of improving long-term profitability in a scenario of lower spreads and tougher regulations.

•

The focus in the third quarter was on maintaining the quality of customer attention and business dynamism.

•

New branches continued to be opened and exclusive Select spaces, with specialised executives. Further progress was made in the new model of traditional network branches.

•

In SMEs, the new Advance strategy was launched in order to manage customers integrally, improve the quality of service and respond to their particular needs. This strategy is supported by Neo Advance developments and the customer relationship model for SMEs.

•

These actions boosted customers and business. Total customers grew 3% year-on-year, notably growth in loyal customers, those of the greatest contribution (+9%), particularly SMEs (+14%) and high-income (+11%).

•

Lending increased 14% year-on-year, with a greater advance in target segments: companies and SMEs (+13%) and high-income clients (+18%). Mortgages rose 18% year-on-year. Funds were up 13%, particularly demand deposits (+16%).

Results

Attributable profit was €125 million in the third quarter. Positive performance of gross income, notably that of net interest income, fee income and gains on financial transactions (due to volatility of exchange rates). On the other hand, higher provisions due to specific events with companies.

Profit for the first nine months was €378 million, 4% higher than in the same period of 2014, following a year-on-year improvement quarter after quarter.

By lines:

•

Gross income increased 6%, with the higher volume of lending, a lower cost of funding, more fee income, gains on financial transactions and a good dynamic with customers activity offsetting the impact of the lower rate of change of the UF (+2.9% as against +3.7% in the same period of 2014).

•

Costs increased 9% due to the rises steming from the indexation of rentals and salaries to year-on-year inflation, as well as the impact of the peso’s depreciation on IT service contracts indexed to the dollar and the euro.

•

The cost of credit fell: loan loss provisions rose 5%, below the growth in lending.

Chile. € million


			o/ 2Q’15								o/ 9M’14

	3Q’15		%			% w/o FX			9M’15		%			% w/o FX

Gross income		606		(4.3	)		4.9			1,792		13.0			5.8

Net operating income		364		(1.7	)		7.5			1,049		10.6			3.5

Attributable profit to the Group		125		(15.2	)		(7.1	)		378		11.5			4.4

Loans w/o repos		32,800		(5.5	)		3.7			32,800		9.5			13.7

Funds		28,614		(4.1	)		5.3			28,614		9.2			13.4

Efficiency ratio (with amortisations) (%)		40.0		(1.6	)					41.5		1.3

NPL ratio (%)		5.60		(0.13	)					5.60		(0.38	)

NPL coverage (%)		52.8		1.2						52.8		0.5


JANUARY - SEPTEMBER		FINANCIAL REPORT 2015
		BUSINESS INFORMATION BY GEOGRAPHY

u Other Latin American units. Argentina (changes in local currency)

First nine months highlights

Credit and deposit growth and trends in line with the markets.

Attributable profit increased 17% year-on-year and 12% in the third quarter. Both due to higher revenues.

Commercial revenues grew because of greater activity and transactions (collections, means of payment, etc).

Operating expenses increased because of the opening of more branches and transformation projects.

Strategy and Activity

•

The Bank’s commercial strategy continued to focus on greater penetration and engagement with high income and SME segments.

•

The Select products were strengthened for high-income clients and new spaces and specialised corners continued to be opened. This boosted cross-selling, transaction engagement and the profitability of these clients.

•

Santander Río Advance was launched in April in order to bolster the SME segment. The financial proposal commits us to respond to loan requests within five days and the non-financial one offers business training and international projection for their businesses, among other things.

•

The expansion and transformation plan continued, with the opening of 37 new branches in the first nine months and 141 branches have been totally transformed. Some 200,000 customers now use the Santander Río Mobile app.

•

Credit rose 50% year-on-year, particularly to companies and consumer loans. Deposits increased 42%.

Results

Attributable profit was 12% higher than in the second quarter, due to commercial revenues (+8%).

The first nine months profit was €274 million, 17% higher than in the same period of 2014.

•

The success of the commercial strategy was reflected in a 25% rise in revenues (+37% net interest income).

•

Costs increased 42% due to branch openings, transformation and IT projects and the revision of the wage agreement. Net operating income was up 9%.

•

Loan-loss provisions declined 5%. Credit quality was high: cost of credit of 1.99%, a NPL ratio of 1.54% and coverage of 168%. All of them were notably better in the last 12 months.

u Other Latin American units. Peru (changes in local currency)

First nine months highlights

Lending and deposits remained strong.

Attributable profit increased 42% year-on-year due to higher revenues.

Strategy and Activity

•

The strategy continued to focus on more lending to the corporate segment, global clients and the country’s large companies.

•

Particular importance attached to close relations with customers and quality of service, exploiting synergies with the Group’s other units.

•

Lending rose 16% year-on-year and deposits at the same pace, complemented by stable growth in medium-term financing.

Results

•

The third quarter attributable profit was €8 million, similar to the second quarter.

•

The first nine months profit was €23 million, spurred by net operating income (+60% year-on-year). This, in turn, increased because of the improvement in efficiency (gross income:+47%; costs:+26%).

•

Loan-loss provisions increased 23% from a very small base. The NPL ratio was just 0.22% and coverage is very high.


		FINANCIAL REPORT 2015		JANUARY - SEPTEMBER
		BUSINESS INFORMATION BY GEOGRAPHY

u Other Latin American units. Uruguay (changes in local currency)

First nine months highlights

Crédito de la Casa, the country’s fourth largest consumer credit institution, was bought in July, consolidating Santander with a 28% market share of finance companies and 25% of consumer credit among private sector banks.

Double-digit growth in loans and deposits.

Attributable profit increased 41% year-on-year and 43% in the third quarter (+35% and +27%, respectively, on a like-for-like basis).

Strategy and Activity

•

The Group is the country’s leading private sector bank, with a strategy focused on growing in retail banking and improving efficiency and the quality of service.

•

Of note was the launch of initiatives to reduce waiting times in branches, a new app with an innovative information service on the nearest branch and occupancy levels, and the EMV Chip to improve the security of cards.

•

Loans grew 20% year-on-year (+17% excluding perimeter): consumer credit (+16%) and SMEs (+32%). Deposits rose 21%. Santander acted as the placement agent for an issue of sovereign bonds in New York.

Results

Attributable profit in the third half was €22 million, including around €2 million from the entry of loans from Casa. The third quarter profit was 43% higher than the second quarter’s (+27% on a like-for-like basis), due to higher growth in revenues than in costs and stable provisions.

•

The attributable profit for the first nine months was €54 million, spurred by a 49% rise in net operating income.

•

Costs were also controlled (+6%), thanks to the efficiency plan developed in 2014.

•

These changes produced an improvement of 8 p.p. in the efficiency ratio to 56% at the end of September.

•

Loan-loss provisions increased, though from a low base, and credit quality remained excellent (NPL ratio of 1.05% and coverage of 244%).

u Other Latin American units. Colombia

•

Banco Santander de Negocios Colombia began to operate in January 2014. The new bank has a banking licence and share capital of $100 million. It specializes in the corporate and business market, with a particular focus on global clients, customers of the Group’s International Desk programme and those local clients in the process of internationalizing.

•

Its main products are for investment banking and capital markets, transaction banking, treasury and risk coverage, foreign trade financing and working capital financing products in local currency, such as confirming.

•

The bank reached a point of equilibrium in the second quarter of 2015 between revenues and costs.


JANUARY - SEPTEMBER		FINANCIAL REPORT 2015
		BUSINESS INFORMATION BY GEOGRAPHY

u United States (changes in dollars)

First nine months highlights

Continued investment to improve commercial activity and comply with regulatory requirements.

Santander Bank grew selectively in deposits and loans.

Santander Consumer USA kept up its strong growth in new lending and servicing activity.

Attributable profit was 9% lower year-on-year (+11% in euros).

Strategy and Activity

•

Santander in the United States includes the holding SHUSA, commercial banking via Santander Bank and Banco Santander Puerto Rico, as well as the specialised consumer finance activity of Santander Consumer USA (SCUSA), the specialised asset management of non-resident clients via Banco Santander International (BSI), Santander Investment Securities (SIS), which acts as a broker, and the New York branch.

•

Santander US continued to strengthen its management teams, risk management models, data bases and basic control functions. This is part of a multi-year project to improve the Bank and comply with the regulator’s expectations.

•

On July 3, Grupo Santander announced it had reached an agreement to buy DDFS LLC’s 9.68% stake in SCUSA. After this operation, subject to the corresponding regulatory approvals, the Group’s stake will rise to around 68.7%.

•

Santander Bank’s lending increased 8% year-on-year, excluding the impact of portfolio sales and securitisations.

The strategy in funds is to increase core deposits and reduce balances of the more expensive time deposits. Funds increased 1.5% in the quarter and 8% year-on-year, underpinned by the rise in current accounts, which is reflected on the continuous increase of core deposits in the last four quarters.

•

SCUSA continued its strategy to diversify its business mix between assets retained on the balance sheet, assets sold and more servicing of portfolios.

•

Puerto Rico maintained its strategy of deleveraging in order to reduce the balance of loans and BSI grew organically.

Results

The first nine months attributable profit was €735 million, 9% less than the same period of 2014, due to higher costs, provisions and minority interests, which more than offset revenue growth.

•

Gross income rose 10%, mainly due to SCUSA, as a result of the larger volume of portfolios, which spurred net interest income, as well as fee income from servicing. Santander Bank’s net interest income is under pressure from lower than expected interest rates, offset by gains on financial transactions.

•

Costs increased 12%, due to the efforts made in regulatory compliance and IT investments.

•

Loan-loss provisions rose 6%, due to both SCUSA, because of the higher level of retention of loans, as well as Santander Bank, which shows a trend of normalization after recording very low levels in 2014 (recoveries in the first quarter).

United States. € million


			o/ 2Q’15								o/ 9M’14
	3Q’15		%			% w/o FX			9M’15		%			% w/o FX

Gross income		1,952		(2.4	)		(1.8	)		5,820		33.2			9.5

Net operating income		1,180		(7.1	)		(6.6	)		3,622		31.7			8.2

Attributable profit to the Group		186		(14.3	)		(13.7	)		660		10.6			(9.1	)

Loans w/o repos		84,853		1.3			1.4			84,853		21.1			7.8

Funds		65,905		0.7			0.8			65,905		25.1			11.4

Efficiency ratio (with amortisations) (%)		39.6		3.1						37.8		0.7

NPL ratio (%)		2.20		—						2.20		(0.37	)

NPL coverage (%)		218.3		(5.9	)					218.3		34.6


		FINANCIAL REPORT 2015		JANUARY - SEPTEMBER
		BUSINESS INFORMATION BY GEOGRAPHY

u Corporate Centre

First nine months highlights

Higher losses year-on-year due to lower results from centralized management of the various risk (mainly interest rate and exchange rate risks) due to reduced revenues from the portfolio of assets, mainly related to interest rate hedging, as well as higher provisions to bolster the balance sheet.

Lower loss in the third quarter than in the second, mainly due to higher gains on financial transactions related to exchange rate hedging.

Strategy/functions and activity

•

Functions developed by the Financial Management area:

Structural management of liquidity risk to finance the Group’s recurring activity, the financial stakes and management of the net liquidity related to the needs of some of the business units.

This activity is carried out using diversified funding instruments (issuances and other), maintaining an adequate profile (volumes, maturities and costs). The price at which these operations with other Group’s units are conducted is the market rate (euribor or swap) plus the premium which, in concept of liquidity, the Group supports by immobilizing funds during the term of the operation.

Also, active management of interest rate risk to soften the impact of interest rate changes on net interest income, conducted via derivatives of high credit quality, very liquid and low capital consumption.

Strategic management of the exposure to exchange rates on equity and on the counter value of the units’ results in euros for the next 12 months. Net investments in equity covered by EUR 15,065 million (mainly Brazil, UK, Mexico, Chile, US, Poland and Norway) with various instruments (spot, fx or forwards).

•

Total management of capital and reserves: assigning capital to each of the units.

•

Lastly, and marginally, the Corporate Centre reflects the stakes of a financial nature that the Group has under its policy of optimizing investments.

Results

In year-on-year terms:

•

Lower revenues due to reduced results from centralized management of the various risk (mainly interest rate and exchange rate risks), which were very partly offset by the lower financial cost of issues due to the decline in interest rates, as well as lower volumes.

•

Costs remained flat. The expenses related to ongoing corporate operations are registered here, until launched, and costs emanating from regulatory requirements.

•

Other income, including provisions and various contingencies, recorded losses of €378 million, up from €128 million in the first nine months of 2014. This was due to provisions to reinforce the balance sheet.

The lower losses in the third quarter than in the second were mainly due to higher gains on financial transactions, partly because of results in hedging of exchange rate risk.

Corporate Centre. € million


	3Q’15			2Q’15			% Var,			9M’15			9M’14			% Var,

Gross income		(56	)		(177	)		(68.2	)		(463	)		9			—

Net operating income		(199	)		(327	)		(39.4	)		(898	)		(428	)		109.9

Attributable profit to the Group		(394	)		(489	)		(19.5	)		(1,375	)		(563	)		144.3


JANUARY - SEPTEMBER		FINANCIAL REPORT 2015
		INFORMATION BY GLOBAL BUSINESS

u Retail Banking

First nine months highlights

We continued to transform our retail banking model into one that is increasingly more simple, personal and fair.

Customer-focused, developing specialized models, ranges of simple products and global proposals.

Drive in multi-channels, particularly digital ones.

At the close of September, the Group had 13.4 loyal customers and 15.7 million digital customers.

Ordinary profit of €5,456 million, 33% more than in the first nine months of 2014 (+27% excluding the forex effect).

Strategy and activity

The bank continued to transform its retail banking, making progress in the main lines: enhanced knowledge of our customers, specialised management of each segment and differentiated value proposals, installing a multi-channel distribution model with the thrust of digital channels, and projects to improve customer satisfaction.

The Group ended September with 13.4 million loyal customers and 15.7 million digital ones, in both cases higher than at the end of June.

In order to increase business productivity and customer satisfaction, the commercial NEO CRM tool continued to be rolled out so as to have a 360º view of customer performance and relations with the Bank. It is already installed in Chile (the origin of this best practice), Brazil, US and Spain, and is being developed in the rest of units.

In order to improve long-term engagement and relations with customers, differentiated value proposals were launched in several countries:

•

The 1|2|3 account was launched in Spain in May and well received. At the end of September over 500,000 of these accounts were opened, 140,000 of which by customers who moved their payroll cheques from other banks.

•

In the Select segment, the Select Premium Portfolios were launched in Germany, which includes three strategic portfolios based on clients’ risk profiles, and the Select Expat in Mexico for executives working in companies abroad.

•

In protection insurance, the welcome calls to new customers implemented in Spain, Mexico and Brazil are achieving substantial improvements in customer satisfaction.

•

Relations with private banking clients were strengthened by the Santander Private Banking Business School programme, designed to support the training of the children and relations of clients in managing their finances.

We continued to strengthen support for SMEs and companies:

•

Santander Advance is now installed in eight countries and continues to increase its value offer.

•

The Santander Trade portal is now available in 12 countries and is used by more than 30,000 exporters and importers.

The digital transformation, a recognised strategic priority, is manifested in improvements in commercial websites, as well as the launch of new apps and developments for mobile phones, such as, Cash KiTTi and Spendlytics in the UK.

Underlining the progress in this field was the recognition of the new mobile app launched in Poland as the country’s best and the second best in Europe, according to the 2015 Global Mobile Banking Functionality Benchmark report by the consultancy Forrester Research. Santander Río was also chosen as Argentina’s best digital bank.

Results (in constant euros)

The ordinary profit for the first nine months was €5,456 million, 2% higher in the quarter and 27% year-on-year

•

This was due to the good evolution of gross income (+8% y-o-y, thanks to net interest income). Costs rose 7% (+1% on a like-for-like basis and in real terms), while provisions dropped 8% from the first nine months of 2014.

Retail Banking. € million


			o/ 2Q’15							o/ 9M’14
	3Q’15		%			% w/o FX		9M’15		%		% w/o FX

Gross income		10,094		(2.9	)		1.9		30,726		10.8		8.2

Net operating income		5,473		(3.9	)		1.1		16,746		12.6		9.6

Ordinary attributable profit to the Group		1,794		(1.8	)		2.1		5,456		33.4		26.6


Loans w/o repos		690,824		(2.9	)		1.3		690,824		6.1		6.4

Funds		693,595		(3.6	)		0.9		693,595		4.7		6.8


		FINANCIAL REPORT 2015		JANUARY - SEPTEMBER
		INFORMATION BY GLOBAL BUSINESS

u Santander Global Corporate Banking (SGCB)

First nine months highlights

Attributable profit of €1,304 million, 2% lower year-on-year, due to higher costs from the investment in franchise development.

Gross income increased driven by net interest income and fee income. Provisions remained virtually unchanged.

Reference positions in corporate loans, project finance and issues, among others, in Europe and Latin America.

Strategy and Activity

SGCB maintained the lines of action begun in 2014: develop the sale of products to all the Bank’s clients, foster transaction business, deepen the creation of the customer franchise in the UK, the US and Poland and step up our coverage in Asia and the Andean region, in line with the Group’s expansion in these areas.

Of note in the third quarter were:

•

Trade Finance, strong progress in export finance to support clients in new markets and successful development of project finance business covered by export credit agencies. The Group is the global reference (second in the global league tables), holding leading positions in all the relevant industries in our core markets.

•

Cash Management, made a solid contribution in all countries, particularly in Mexico, Brazil and the UK. Mandates were won in the third quarter, strengthening our Latin American and European regional leadership.

•

In syndicated corporate loans, we continued to be the reference in Europe and Latin America, participating in the main acquisitions in the markets where we operate: IAG (Aer Lingus), Barceló (Occidental), Vidrala (Encirc), Royal Dutch Shell (BG Group), Abertis, CCR, Companhia de Locação das Américas, Fibra Uno, Pemex and Kulcyk Investments (CIECH).

•

Of note in Corporate Finance, was the greater activity in Europe for equity capital markets, particularly our participation in the listing of CELLNEX in Spain, as well as the capital increases of Monte de Paschi di Siena and Carige in Italy.

•

In the debt capital markets, Santander heads the Latin American ranking with a full range of products covering local as well as cross-border needs. Success in Europe in liability management and hybrid capital transactions.

•

In Project Finance, Santander is one of the leaders in the American league tables. It is the reference bank in the US for renewable energy projects, among which is the $250 million Mustang solar project, fully structured and underwritten by Santander. Participation in Europe included underwriting the £1 billion Thames Tideway financing, structured under the novel modality of a revolving credit facility with a British government guarantee.

•

A&CS, good quarter with asset finance operations for ships and aircrafts in Spain, Asia and the Middle East.

•

As regards Markets activity, positive evolution of revenues from sales business, particularly in the corporate segment. Strong growth in Latin America and the UK. Lower year-on-year contribution from the management of books.

Results (in constant euros)

Results were backed by the strength and diversification of customer revenues (87% of the total). SGCB generated 11% of gross income and 19% of the Group’s attributable profit from the operating areas.

•

Gross income increased 3% year-on-year. Of note was the 6% rise in that from global transaction banking in an environment of contained spreads and low interest rates, and the 10% increase from financing solutions and advisory. This reflected the strength of the various businesses. The good performance in Latin America of global markets offset the lower contribution from European units.

•

Costs were higher because of investments in high growth potential markets, particularly in the US, UK, Poland and Asia, and loan-loss provisions increased 1.6%.

Santander Global Corporate Banking. € million


			o/ 2Q’15								o/ 9M’14

	3Q’15		%			% w/o FX			9M’15		%			% w/o FX

Gross income		1,253		(7.5	)		(2.5	)		4,005		3.9			3.3

Net operating income		732		(12.0	)		(5.8	)		2,452		(1.4	)		(0.6	)

Ordinary attributable profit to the Group		396		(12.1	)		(7.1	)		1,304		(2.3	)		(1.6	)


Loans w/o repos		89,036		(3.8	)		2.4			89,036		10.0			17.6

Funds		59,810		(5.0	)		0.6			59,810		(1.8	)		4.2


JANUARY - SEPTEMBER		FINANCIAL REPORT 2015
		CORPORATE GOVERNANCE

Corporate governance

Changes to the board’s regulations

•

The board, at its meeting on July 29, agreed to modify its regulations in order to bring them into line with the reform of by-laws approved at the ordinary general meeting of shareholders on March 27 so as to adapt the statutes to the new developments in the sphere of corporate governance introduced by Law 31/2014 of December 3, 2014, which changes the Corporation Law in order to enhance corporate governance.

The change in the regulations also aims to review and adapt the Bank’s corporate governance rules to the recommendations that are applicable to it as a listed company and as a credit institution, for which the new code of good governance of listed companies published by the National Securities Market Commission in February 2015 was taken into account, as well as the internal governance guide of the European Banking Authority and the new Basel guide on banks’ corporate governance published on July 8.

Lastly, come changes were introduced to the board’s committees, as well as certain technical improvements and to the Bank’s internal governance rules.

•

The board, at its meeting on September 29, agreed to modify the regulation so that the maximum number of members of the innovation and technology committee is eight.

Changes to the composition of the board and its committees

•

Ms. Sheila C. Bair resigned as a director of the Bank effective October 1, following her recent appointment as the rector of Washington College.

•

Following the verification on September 21 by the European Central Bank of the suitability of Mr. Ignacio Benjumea Cabeza de Vaca as a non-executive director of the Bank, his appointment to the board was made effective and his incorporation to the executive, risk, appointments and remuneration committees. He also joined the technology and innovation committee on September 29 and the risk supervision, regulation and compliance committee on October 1 in place of Ms. Sheila C. Bair.

Appointments at the subsidiaries in Mexico, Brazil and the United States ⁽¹⁾

•

Mr. Marcos Martínez Gavica was appointed chairman of the board of Grupo Financiero México, S.A.B. de C.V. and of Banco Santander (México), S.A. Institución de Banca Múltiple, Grupo Financiero Santander México, as of January 1, 2016, and Mr. Héctor Grisi Checa was named executive chairman and director general of these entities, as of December 1, 2015.

•

Mr. Sérgio Rial, non-executive chairman of the board of Santander Brazil, S.A., was appointed executive chairman and the Group’s country head in Brazil as of January 1, 2016.

•

Mr. Scott Powell, CEO of Santander Holding USA, Inc. and the Group’s country head in the United States, was appointed CEO of Santander Bank, N.A., and Mr. Jason Kulas was appointed CEO of Santander Consumer USA.

(1)	These appointments are subject to the corresponding regulatory authorisations.


		FINANCIAL REPORT 2015		JANUARY - SEPTEMBER
		CORPORATE SOCIAL RESPONSIBILITY

Corporate social responsibility

Grupo Santander continued to develop initiatives under its commitment to corporate social responsibility. The main ones during the third quarter were:

Presence in sustainable indices and investors

•

Banco Santander continued to be part of the Dow Jones Sustainability Index, the main international one that measures companies’ sustainable performance. The index assesses economic, environmental and social aspects.

•

With a score of 84 out of 100, Banco Santander is recognised by Dow Jones as one of the best valued banks in the world and the first in Spain for its sustainable performance, its contribution to people’s and companies’ progress and its protection of the environment, according to the rating agency RobecoSAM.

Social investment

Santander Universities

•

Sixty-three universities from all over the world who showed their commitment to alleviating poverty attended the international congress of rectors “Universities for Poverty Alleviation”, organised by Banco Santander and the NGO Helsinki Spain-Human Dimension.

Ana Botín, the executive chairman, closed the meeting and reaffirmed Banco Santander’s commitment to society and to universities. She expressed a firm conviction that innovation, science and research are vital tools in the fight against poverty, one of the most important problems facing humanity.

•

For the fourth year running Grupo Santander City hosted various training activities that the Complutense University in Madrid organised as part of the XXVIII edition of its summer courses. Banco Santander is the main sponsor. Of note were four courses related to global sustainable development, new ways of working in companies in the 21^stcentury, the employability of university students, entrepreneurship and innovation.

•

In Portugal, the Santander Scholarship programme of work experience in SMEs will deliver 1,500 scholarships over the next three years so that students can complement their studies with practical work. Santander Totta offers help to university students through placements in Portuguese SMEs and facilitates companies having such students.

Investment in the community

•

In Brazil, the Bank’s microcredit programme notched up a record BRL 3 billion since 2002. This programme provides financial support to more than 500 local governments by helping communities and customers structure their business and enabling them to grow.

•

In Chile, the Bank launched Sanodelucas Play, an interactive financial education game that helps make people aware of the importance and benefits of keeping their personal finances in order. The Sanodelucas programme strengthens the financial education of individuals and SMEs, whether they are clients of the Bank or not.

•

Bank Zachodni WBK held its Semana sin Barreras programme to make employees aware of the opportunities of providing a simple service and one without obstacles for customers with disabilities, through the multi channel service. The programme facilitates access to online channels, including voice systems in ATMs. A total of 193 branches have an accessibility certificate for the disabled.

As regards corporate social responsibility, the Group reaffirmed its commitment at its Investor Day in September to contribute to the economic and social progress of the communities in which it operates. Two goals were set for 2016-2018: the granting of 130,000 scholarships and helping 4.5 million people through support programmes.


JANUARY - SEPTEMBER		FINANCIAL REPORT 2015
		THE SANTANDER SHARE

The Santander share

Shareholder remuneration

•

Shareholders received in August the first dividend in cash charged to 2015’s earnings of €0.05 per share.

•

At the same time, it was agreed to apply the Santander Dividendo Elección programme (scrip dividend) at the dates when the second dividend is traditionally paid. Each shareholder received a free allotment right of new shares for every Santander share held. Shareholders can sell these rights to the Bank at a set price (€0.05 per right), to the stock market between October 20 and November 3 at the market price, or receive new shares in the proportion of one new share for every 103 rights (in the last two cases with no withholding tax*).

•

In order to tend to the latter case, a capital increase with bonus shares for a maximum of €69,498,217.50 and 138,996,435 shares will be made. The number of new shares to be issued and, thus, the amount of the capital increase will depend on the number of shareholders that opt to see their free allotment rights to the Bank at a set price.

Performance of the Santander share

•

The third quarter was a volatile one for stock markets, because of the slowdown in the Chinese economy, which made China’s central bank devalue the yuan, and the impact it could have on global economic growth, particularly in emerging countries, as well as the continued uncertainty over the Federal Reserve’s interest rate policy.

•

The Santander share price ended September at €4.744, a drop of 32% in the first nine months, heavily influenced in the third quarter by the Brazilian economic situation and the real’s deprecation. The Ibex-35, Spain’s benchmark index, fell 7%, the DJ Stoxx Banks 2% and the DJ Stoxx 50 1%. As we went to press, the Santander share price was €5.204, up 10% in October.

Capitalisation and trading

•

At the end of September, Santander was the largest bank in the euro zone by market capitalization (€67,918 million) and the 15th in the world. The share’s weighting in the DJ Stoxx 50 was 2.0%, 6.9% in the DJ Stoxx Banks and 14.5% in the Ibex-35.

•

A total of 20,033 million Santander shares were traded in the first nine months with an effective value of €125,206 million, the highest among the EuroStoxx stocks, and a liquidity ratio of 142%. The number of shares traded daily was 104.9 million (€655.5 million).

Shareholder base

•

The total number of shareholders at the end of September was 3,209,138, of which 2,971,310 were held by Europeans (82.34% of the capital stock) and 211,456 by those from the Americas (17.10%).

•

Excluding the Bank’s board, which holds 1.25% of the capital, retail shareholders have 42.59% and institutional ones 56.16%.

(*)	The options, periods and procedures indicated could present particular circumstances for shareholders with Santander shares in the foreign stock markets where the Bank is listed. Also, the tax system of the various options could depend on shareholders’ personal circumstances

The Santander share. September 2015


Shareholders and trading data
Shareholders (number)			3,209,138
Shares (number)			14,316,632,805
Average daily turnover (no. of shares)			104,886,810
Share liquidity (%) (Number of shares traded during the year / number of shares)			142

Price movements during the year
Highest			7.169
Lowest			4.551
Last (30.09.15)			4.744
Market capitalisation (millions) (30.09.15)			67,918

Stock market indicators
Price / Book value (X)			0.77
P/E ratio (X)			10.19
Yield* (%)			6.33

LOGO

(*).- Last three remuneration paid + one announced / 9M’15

average share price


		FINANCIAL REPORT 2015		JANUARY - SEPTEMBER
		FINANCIAL INFORMATION

LOGO


JANUARY - SEPTEMBER	FINANCIAL REPORT 2015
	FINANCIAL INFORMATION	APPENDIX

Income statement. Consolidated

€ million


							Variation												Variation

	3Q’15			2Q’15			%			% w/o FX			9M’15			9M’14			%			% w/o FX


Net interest income	7,983			8,281			(3.6)			1.4			24,302			21,834			11.3			8.5

Net fees		2,474			2,586			(4.3	)		0.5			7,584			7,172			5.8			4.9

Gains (losses) on financial transactions		634			372			70.4			76.3			1,702			2,229			(23.7	)		(25.7	)

Other operating income		225			379			(40.7	)		(39.7	)		790			337			134.4			124.1

Dividends		75			239			(68.7	)		(68.1	)		347			323			7.6			7.7

Income from equity-accounted method		93			101			(7.3	)		1.4			293			180			63.4			71.7

Other operating income/expenses		57			39			44.7			27.6			149			(166	)		—			—

Gross income		11,316			11,618			(2.6	)		2.3			34,378			31,572			8.9			6.5

Operating expenses		(5,342	)		(5,429	)		(1.6	)		2.6			(16,149	)		(14,822	)		8.9			6.7

General administrative expenses		(4,731	)		(4,826	)		(1.9	)		2.3			(14,342	)		(13,125	)		9.3			6.9

Personnel		(2,717	)		(2,836	)		(4.2	)		(0.3	)		(8,308	)		(7,543	)		10.2			7.6

Other general administrative expenses		(2,015	)		(1,989	)		1.3			6.0			(6,034	)		(5,583	)		8.1			6.0

Depreciation and amortisation		(611	)		(603	)		1.2			4.6			(1,806	)		(1,697	)		6.4			4.9

Net operating income		5,974			6,189			(3.5	)		2.0			18,229			16,750			8.8			6.4

Net loan-loss provisions		(2,479	)		(2,508	)		(1.2	)		4.8			(7,550	)		(8,110	)		(6.9	)		(8.4	)

Impairment losses on other assets		(110	)		(78	)		41.5			43.8			(247	)		(225	)		10.1			9.7

Other income		(606	)		(605	)		0.2			5.5			(1,666	)		(1,275	)		30.6			34.5

Ordinary profit before taxes		2,778			2,998			(7.3	)		(2.2	)		8,766			7,140			22.8			18.0

Tax on profit		(787	)		(939	)		(16.2	)		(11.8	)		(2,649	)		(1,882	)		40.8			36.0

Ordinary profit from continuing operations		1,991			2,059			(3.3	)		2.1			6,117			5,258			16.3			11.7

Net profit from discontinued operations		(0	)		0			—			—			—			(7	)		(100.0	)		(100.0	)

Ordinary consolidated profit		1,991			2,059			(3.3	)		2.1			6,117			5,252			16.5			11.8

Minority interests		311			350			(11.1	)		(6.1	)		1,011			891			13.5			11.9

Ordinary attributable profit to the Group		1,680			1,709			(1.7	)		3.8			5,106			4,361			17.1			11.8

Net capital gains and provisions ⁽¹⁾		—			835			(100.0	)		(94.4	)		835			—			—			—

Attributable profit to the Group		1,680			2,544			(34.0	)		(27.6	)		5,941			4,361			36.2			30.0

(1)	Including:

In the first nine months of 2014 capital gains were recorded by the Altamira operation, for the listing of SCUSA and by the change in the UK pension commitments (EUR 1,335 million overall). At the same time a fund was established for restructuring costs and a charge was made for impairment losses on intangible assets and other provisions of a similar amount. The net impact of these amounts on the first half profit was zero.

Additionally, in the second quarter the Group recorded attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil.

Information on total profit*


	3Q’15		2Q’15		%			9M’15		9M’14		%		2014

Attributable profit to the Group ⁽¹⁾		1,680		2,544		(34.0	)		5,941		4,361		36.2		5,816

EPS (euro)		0.112		0.175		(35.8	)		0.408		0.367		11.3		0.479

RoE ⁽²⁾		7.4		8.4					8.4		7.2				7.0

RoTE ⁽²⁾		11.3		12.8					12.8		11.3				11.0

RoA		0.6		0.7					0.7		0.6				0.6

RoRWA		1.3		1.5					1.5		1.3				1.3

P/E ratio (X)		8.7		10.6					8.7		15.6				14.6

(*).-

In 2Q’15 and 9M’15 including attributable profit of €835 million due to the net result of the reversal of tax liabilities in Brazil

(1).-

Variations w/o exchange rate: quarterly: -27.6%; year-on-year: +30.0%

(2).-

In 2014, pro-forma taking into account the January 2015 capital increase.


	FINANCIAL REPORT 2015	JANUARY - SEPTEMBER
APPENDIX	FINANCIAL INFORMATION

Net fees. Consolidated

€ million


	3Q’15			2Q’15			Var, %			9M’15			9M’14			Var, %


Fees from services		1,524			1,546			(1.5	)		4,580			4,303			6.4

Mutual & pension funds		219			199			10.0			658			667			(1.3	)

Securities and custody		195			278			(29.9	)		688			577			19.1

Insurance		536			563			(4.7	)		1,659			1,625			2.1

Net fee income		2,474			2,586			(4.3	)		7,584			7,172			5.8

Operating expenses. Consolidated
€ million


	3Q’15			2Q’15			Var, %			9M’15			9M’14			Var, %


Personnel expenses		2,717			2,836			(4.2	)		8,308			7,543			10.2

General expenses		2,015			1,989			1.3			6,034			5,583			8.1

Information technology		262			274			(4.2	)		823			680			21.1

Communications		130			117			11.2			380			381			(0.3	)

Advertising		170			174			(2.3	)		500			454			10.0

Buildings and premises		434			461			(5.9	)		1,369			1,341			2.1

Printed and office material		40			43			(7.1	)		120			113			6.6

Taxes (other than profit tax)		130			129			0.5			393			341			15.3

Other expenses		850			793			7.3			2,449			2,272			7.8

Personnel and general expenses		4,731			4,826			(1.9	)		14,342			13,125			9.3

Depreciation and amortisation		611			603			1.2			1,806			1,697			6.4

Total operating expenses		5,342			5,429			(1.6	)		16,149			14,822			8.9

Operating means. Consolidated


	Employees									Branches
	30.09.15			30.09.14			Var,			30.09.15			30.09.14			Var,


Continental Europe		56,704			56,177			527			5,424			5,616			(192	)

o/w: Spain		24,231			25,135			(904	)		3,487			3,611			(124	)

Santander Consumer Finance		14,138			12,345			1,793			592			572			20

Poland		11,626			11,933			(307	)		752			803			(51	)

Portugal		5,423			5,552			(129	)		575			620			(45	)

United Kingdom		26,154			25,384			770			882			942			(60	)

Latin America		88,893			83,378			5,515			5,812			5,689			123

o/w: Brazil		48,955			46,687			2,268			3,436			3,427			9

Mexico		17,704			15,912			1,792			1,354			1,299			55

Chile		12,334			12,135			199			476			476			—

USA		17,592			16,562			1,030			783			812			(29	)

Operating areas		189,343			181,501			7,842			12,901			13,059			(158	)

Corporate Activities		2,161			2,033			128

Total Group		191,504			183,534			7,970			12,901			13,059			(158	)


Net loan-loss provisions. Consolidated
€ million


	3Q’15			2Q’15			Var, %			9M’15			9M’14			Var, %

Non performing loans		2,847			2,928			(2.7	)		8,680			9,069			(4.3	)

Country-risk		3			17			(81.1	)		21			(4	)		—

Recovery of written-off assets		(371	)		(436	)		(15.0	)		(1,151	)		(956	)		20.4

Total		2,479			2,508			(1.2	)		7,550			8,110			(6.9	)


JANUARY - SEPTEMBER	FINANCIAL REPORT 2015
	FINANCIAL INFORMATION	APPENDIX

Customer loans. Consolidated

€ million


					Variation
	30.09.15		30.09.14		amount			%			31.12.14

Spanish Public sector		15,207		16,204		(996	)		(6.1	)		17,465

Other residents		152,196		158,190		(5,994	)		(3.8	)		154,905

Commercial bills		8,228		6,459		1,769			27.4			7,293

Secured loans		93,404		97,753		(4,349	)		(4.4	)		96,426

Other loans		50,564		53,978		(3,414	)		(6.3	)		51,187

Non-resident sector		635,840		575,032		60,808			10.6			589,557

Secured loans		398,110		351,910		46,200			13.1			369,266

Other loans		237,730		223,122		14,608			6.5			220,291

Gross customer loans		803,243		749,426		53,817			7.2			761,928

Loan-loss allowances		26,224		27,438		(1,214	)		(4.4	)		27,217

Net customer loans		777,020		721,988		55,031			7.6			734,711

Pro memoria: Doubtful loans		36,864		40,440		(3,576	)		(8.8	)		40,424

Public sector		190		167		23			13.9			167

Other residents		17,130		20,360		(3,229	)		(15.9	)		19,951

Non-resident sector		19,544		19,914		(369	)		(1.9	)		20,306

Managed and marketed customer funds. Consolidated

€ million


					Variation
	30.09.15		30.09.14		amount			%			31.12.14

Resident public sector		8,886		9,689		(803	)		(8.3	)		9,349

Other residents		164,067		162,313		1,754			1.1			163,340

Demand deposits		105,730		82,530		23,200			28.1			88,312

Time deposits		56,134		75,837		(19,703	)		(26.0	)		67,495

Other		2,203		3,945		(1,743	)		(44.2	)		7,532

Non-resident sector		496,283		474,329		21,954			4.6			474,939

Demand deposits		302,251		259,141		43,110			16.6			273,889

Time deposits		139,295		156,448		(17,153	)		(11.0	)		151,113

Other		54,736		58,739		(4,003	)		(6.8	)		49,937

Customer deposits		669,236		646,331		22,906			3.5			647,628

Debt securities		197,257		195,595		1,662			0.8			196,890

Subordinated debt		19,606		17,334		2,272			13.1			17,132

On-balance-sheet customer funds		886,099		859,259		26,840			3.1			861,649

Mutual funds		122,365		124,911		(2,545	)		(2.0	)		124,708

Pension funds		11,220		11,341		(120	)		(1.1	)		11,481

Managed portfolios		25,828		24,923		906			3.6			25,599

Other managed and marketed customer funds		159,414		161,174		(1,760	)		(1.1	)		161,788

Managed and marketed customer funds		1,045,513		1,020,433		25,080			2.5			1,023,437

Eligible capital (fully loaded)*

€ million


							Variation
	30.09.15			31.12.14			amount			%

Capital stock and reserves		98,328			93,748			4,580			4.9

Attributable profit		5,941			5,816			125			2.2

Dividends		(1,725	)		(1,014	)		(711	)		70.1

Other retained earnings		(16,305	)		(11,468	)		(4,837	)		42.2

Minority interests		5,375			4,131			1,244			30.1

Goodwill and intangible assets		(28,515	)		(29,164	)		649			(2.2	)

Treasury stock and other deductios		(5,522	)		(5,767	)		245			(4.3	)

Core CET1		57,577			56,282			1,295			2.3

Preferred shares and other eligibles T1		5,619			4,728			891			18.9

Tier 1		63,196			61,010			2,186			3.6

Generic funds and eligible T2 instruments		11,322			7,561			3,761			49.7

Eligible capital		74,519			68,571			5,948			8.7

Risk-weighted assets		584,322			583,366			956			0.2


CET1 capital ratio		9.85			9.65			0.20

T1 capital ratio		10.82			10.46			0.36

BIS ratio		12.75			11.75			1.00

(*).-

In 2014, pro-forma data taking into account the January 2015 capital increase


	FINANCIAL REPORT 2015	JANUARY - SEPTEMBER
APPENDIX	FINANCIAL INFORMATION

Continental Europe

€ million


				o/ 2Q’15									o/ 9M’14
Income statement	3Q’15			%			% w/o FX			9M’15			%			% w/o FX

Net interest income		1,987			(1.0	)		(0.1	)		6,050			9.0			9.0

Net fees		855			(2.5	)		(2.1	)		2,576			(2.3	)		(2.7	)

Gains (losses) on financial transactions		321			255.8			258.4			815			(8.7	)		(8.9	)

Other operating income*		90			(63.0	)		(63.0	)		439			150.3			149.0

Gross income		3,253			1.1			1.8			9,880			6.8			6.6

Operating expenses		(1,689	)		0.6			1.2			(5,037	)		4.3			4.0

General administrative expenses		(1,565	)		0.5			1.1			(4,683	)		4.6			4.4

Personnel		(790	)		(3.8	)		(3.2	)		(2,410	)		3.2			2.8

Other general administrative expenses		(775	)		5.3			5.8			(2,273	)		6.2			6.0

Depreciation and amortisation		(124	)		1.9			2.4			(354	)		0.0			(0.1	)

Net operating income		1,564			1.6			2.4			4,843			9.5			9.3

Net loan-loss provisions		(495	)		(3.3	)		(2.7	)		(1,643	)		(28.5	)		(28.4	)

Other income		(137	)		(26.0	)		(25.9	)		(462	)		(22.9	)		(22.9	)

Profit before taxes		932			10.7			11.8			2,737			79.2			78.4

Tax on profit		(242	)		11.8			12.8			(710	)		96.1			95.9

Profit from continuing operations		690			10.3			11.4			2,027			74.0			73.0

Net profit from discontinued operations		(0	)		—			—			—			(100.0	)		(100.0	)

Consolidated profit		690			10.3			11.4			2,027			75.0			74.0

Minority interests		65			(1.1	)		0.4			202			75.3			74.5

Attributable profit to the Group		625			11.6			12.7			1,825			74.9			73.9


Balance sheet

Customer loans**		278,723			(0.7	)		(0.3	)		278,723			4.9			5.3

Trading portfolio (w/o loans)		60,318			(3.2	)		(3.1	)		60,318			(5.1	)		(5.1	)

Available-for-sale financial assets		59,142			(3.2	)		(3.0	)		59,142			14.0			14.1

Due from credit institutions**		87,379			34.8			35.0			87,379			35.8			35.3

Intangible assets and property and equipment		11,172			0.1			0.2			11,172			33.1			32.0

Other assets		32,859			17.6			17.8			32,859			36.0			36.2

Total assets/liabilities & shareholders’ equity		529,594			4.3			4.6			529,594			10.8			10.9

Customer deposits**		263,013			(0.4	)		(0.2	)		263,013			1.0			1.2

Marketable debt securities**		47,267			(1.0	)		(0.4	)		47,267			(6.4	)		(5.5	)

Subordinated debt**		175			2.3			3.1			175			(56.6	)		(56.0	)

Insurance liabilities		643			(0.5	)		(0.5	)		643			(61.5	)		(61.5	)

Due to credit institutions**		125,066			23.2			23.6			125,066			62.2			62.0

Other liabilities		61,140			(2.6	)		(2.5	)		61,140			2.9			3.0

Stockholders’ equity ***		32,290			4.2			4.6			32,290			12.2			12.2

Other managed and marketed customer funds		68,030			(4.8	)		(4.7	)		68,030			3.8			3.6

Mutual and pension funds		59,469			(4.7	)		(4.7	)		59,469			4.3			4.4

Managed portfolios		8,558			(5.0	)		(5.0	)		8,558			0.5			(1.5	)

Managed and marketed customer funds		378,484			(1.3	)		(1.0	)		378,484			0.5			0.7


Ratios (%) and operating means

ROE		7.91			0.60						7.93			2.97

Efficiency ratio (with amortisations)		51.9			(0.3	)					51.0			(1.2	)

NPL ratio		7.89			(0.26	)					7.89			(1.03	)

NPL coverage		60.4			1.5						60.4			2.3

Number of employees		56,704			(0.7	)					56,704			0.9

Number of branches		5,424			(0.4	)					5,424			(3.4	)

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

(**).-

Including all on-balance sheet balances for this item

(***).-

Capital + reserves + profit + valuation adjustments

LOGO


JANUARY - SEPTEMBER	FINANCIAL REPORT 2015
	FINANCIAL INFORMATION	APPENDIX

Spain

€ million


Income statement	3Q’15			% o/ 2Q’15			9M’15			% o/ 9M’14

Net interest income		837			(2.3	)		2,650			(1.8	)

Net fees		415			(5.8	)		1,269			(5.9	)

Gains (losses) on financial transactions		242			593.9			579			(27.3	)

Other operating income*		77			(59.8	)		343			237.6

Gross income		1,570			3.2			4,842			(2.1	)

Operating expenses		(863	)		0.8			(2,574	)		(2.3	)

General administrative expenses		(806	)		0.4			(2,419	)		(3.2	)

Personnel		(415	)		(1.4	)		(1,255	)		(6.0	)

Other general administrative expenses		(391	)		2.3			(1,165	)		0.1

Depreciation and amortisation		(57	)		7.8			(154	)		14.7

Net operating income		708			6.2			2,268			(1.9	)

Net loan-loss provisions		(205	)		(22.2	)		(835	)		(41.4	)

Other income		(58	)		(18.2	)		(174	)		41.9

Profit before taxes		444			34.1			1,259			64.5

Tax on profit		(127	)		36.9			(359	)		59.4

Profit from continuing operations		317			33.0			900			66.6

Net profit from discontinued operations		—			—			—			—

Consolidated profit		317			33.0			900			66.6

Minority interests		6			(2.9	)		16			599.9

Attributable profit to the Group		311			33.9			883			64.2


Balance sheet

Customer loans**		156,121			(1.4	)		156,121			(0.2	)

Trading portfolio (w/o loans)		57,331			(2.8	)		57,331			(4.9	)

Available-for-sale financial assets		44,340			(4.9	)		44,340			20.9

Due from credit institutions**		65,526			44.7			65,526			43.3

Intangible assets and property and equipment		2,886			(0.6	)		2,886			(18.5	)

Other assets		12,808			53.4			12,808			77.6

Total assets/liabilities & shareholders’ equity		339,011			5.8			339,011			9.4

Customer deposits**		181,636			(1.4	)		181,636			(0.3	)

Marketable debt securities**		23,916			(10.6	)		23,916			(24.5	)

Subordinated debt**		2			74.9			2			120.2

Insurance liabilities		533			(3.3	)		533			5.7

Due to credit institutions**		70,171			55.9			70,171			114.9

Other liabilities		50,117			(3.8	)		50,117			(3.2	)

Stockholders’ equity ***		12,637			6.8			12,637			15.1

Other managed and marketed customer funds		59,544			(4.3	)		59,544			4.0

Mutual and pension funds		53,454			(4.6	)		53,454			4.7

Managed portfolios		6,090			(1.2	)		6,090			(2.4	)

Managed and marketed customer funds		265,097			(3.0	)		265,097			(2.3	)


Ratios (%) and operating means

ROE		10.09			1.95			10.06			3.58

Efficiency ratio (with amortisations)		54.9			(1.3	)		53.2			(0.1	)

NPL ratio		6.61			(0.30	)		6.61			(0.96	)

NPL coverage		47.8			1.0			47.8			2.3

Number of employees		24,231			(0.4	)		24,231			(3.6	)

Number of branches		3,487			(0.1	)		3,487			(3.4	)

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

(**).-

Including all on-balance sheet balances for this item

(***).-

Capital + reserves + profit + valuation adjustments

LOGO


	FINANCIAL REPORT 2015	JANUARY - SEPTEMBER
APPENDIX	FINANCIAL INFORMATION

Santander Consumer Finance

€ million


Income statement	3Q’15			% o/2Q’15			9M’15			% o/9M’14

Net interest income		788			1.8			2,292			32.0

Net fees		223			3.2			659			2.7

Gains (losses) on financial transactions		3			—			(5	)		591.1

Other operating income*		4			(55.8	)		23			499.2

Gross income		1,018			2.7			2,968			24.7

Operating expenses		(443	)		0.1			(1,306	)		20.0

General administrative expenses		(398	)		(0.0	)		(1,180	)		22.8

Personnel		(174	)		(13.1	)		(554	)		27.5

Other general administrative expenses		(224	)		13.2			(626	)		19.0

Depreciation and amortisation		(45	)		1.3			(127	)		(1.5	)

Net operating income		575			4.8			1,662			28.7

Net loan-loss provisions		(142	)		8.2			(440	)		9.7

Other income		(44	)		23.5			(102	)		0.4

Profit before taxes		389			1.8			1,119			41.9

Tax on profit		(108	)		(2.3	)		(314	)		54.2

Profit from continuing operations		281			3.5			805			37.7

Net profit from discontinued operations		(0	)		—			—			(100.0	)

Consolidated profit		281			3.5			805			39.3

Minority interests		40			28.7			102			274.0

Attributable profit to the Group		242			0.3			702			27.6


Balance sheet

Customer loans**		70,067			0.7			70,067			19.6

Trading portfolio (w/o loans)		90			51.4			90			120.1

Available-for-sale financial assets		2,876			56.2			2,876			376.8

Due from credit institutions**		3,410			(44.4	)		3,410			(38.5	)

Intangible assets and property and equipment		749			(2.4	)		749			(4.4	)

Other assets		4,581			14.5			4,581			36.6

Total assets/liabilities & shareholders’ equity		81,774			(0.7	)		81,774			18.6

Customer deposits**		31,789			(0.1	)		31,789			4.0

Marketable debt securities**		20,384			13.0			20,384			37.7

Subordinated debt**		73			4.8			73			12.7

Insurance liabilities		—			—			—			—

Due to credit institutions**		16,264			(20.9	)		16,264			22.9

Other liabilities		4,934			21.8			4,934			71.7

Stockholders’ equity ***		8,329			6.7			8,329			13.0

Other managed and marketed customer funds		7			0.4			7			3.0

Mutual and pension funds		7			0.4			7			3.0

Managed portfolios		—			—			—			—

Managed and marketed customer funds		52,253			4.7			52,253			15.0


Ratios (%) and operating means

ROE		12.10			(0.35	)		12.12			1.84

Efficiency ratio (with amortisations)		43.5			(1.1	)		44.0			(1.7	)

NPL ratio		4.15			(0.10	)		4.15			0.18

NPL coverage		107.2			2.3			107.2			0.8

Number of employees		14,138			(0.5	)		14,138			14.5

Number of branches		592			—			592			3.5

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

(**).-

Including all on-balance sheet balances for this item

(***).-

Capital + reserves + profit + valuation adjustments

LOGO


JANUARY - SEPTEMBER	FINANCIAL REPORT 2015
	FINANCIAL INFORMATION	APPENDIX

Poland

€ million


				o/2Q’15									o/9M’14
Income statement	3Q’15			%			% w/o FX			9M’15			%			% w/o FX

Net interest income		196			2.3			4.9			579			(9.4	)		(9.8	)

Net fees		103			(5.6	)		(3.3	)		313			(4.5	)		(4.9	)

Gains (losses) on financial transactions		18			(4.4	)		1.3			90			187.0			185.7

Other operating income*		(9	)		—			—			2			(90.6	)		(90.7	)

Gross income		309			(8.1	)		(5.7	)		985			(3.7	)		(4.2	)

Operating expenses		(146	)		(4.4	)		(2.0	)		(451	)		2.2			1.7

General administrative expenses		(136	)		(4.4	)		(1.9	)		(417	)		2.8			2.3

Personnel		(79	)		(3.4	)		(1.0	)		(243	)		5.0			4.5

Other general administrative expenses		(57	)		(5.6	)		(3.2	)		(174	)		(0.2	)		(0.7	)

Depreciation and amortisation		(11	)		(5.1	)		(2.6	)		(34	)		(4.7	)		(5.1	)

Net operating income		162			(11.2	)		(8.8	)		534			(8.2	)		(8.6	)

Net loan-loss provisions		(39	)		(13.9	)		(11.9	)		(124	)		(3.9	)		(4.4	)

Other income		3			—			—			(0	)		(96.8	)		(96.8	)

Profit before taxes		125			(6.7	)		(4.1	)		410			(7.3	)		(7.7	)

Tax on profit		(26	)		14.9			18.1			(77	)		(11.5	)		(11.9	)

Profit from continuing operations		99			(11.2	)		(8.7	)		333			(6.2	)		(6.7	)

Net profit from discontinued operations		—			—			—			—			—			—

Consolidated profit		99			(11.2	)		(8.7	)		333			(6.2	)		(6.7	)

Minority interests		26			(12.5	)		(10.0	)		90			(4.1	)		(4.6	)

Attributable profit to the Group		73			(10.7	)		(8.2	)		243			(7.0	)		(7.4	)


Balance sheet

Customer loans**		18,466			0.7			2.0			18,466			7.3			9.0

Trading portfolio (w/o loans)		1,032			(8.9	)		(7.7	)		1,032			29.8			31.9

Available-for-sale financial assets		5,500			(2.6	)		(1.4	)		5,500			(7.1	)		(5.6	)

Due from credit institutions**		1,166			(6.4	)		(5.2	)		1,166			22.5			24.4

Intangible assets and property and equipment		229			(2.3	)		(1.1	)		229			2.1			3.7

Other assets		1,773			6.9			8.2			1,773			(21.4	)		(20.2	)

Total assets/liabilities & shareholders’ equity		28,166			(0.3	)		1.0			28,166			2.9			4.6

Customer deposits**		20,404			1.1			2.4			20,404			0.9			2.5

Marketable debt securities**		401			14.5			16.0			401			70.2			72.9

Subordinated debt**		100			(0.2	)		1.1			100			(70.4	)		(69.9	)

Insurance liabilities		—			—			—			—			(100.0	)		(100.0	)

Due to credit institutions**		1,396			(15.8	)		(14.8	)		1,396			30.0			32.1

Other liabilities		3,476			(3.2	)		(1.9	)		3,476			12.1			13.9

Stockholders’ equity ***		2,388			0.9			2.2			2,388			3.2			4.9

Other managed and marketed customer funds		3,607			(8.2	)		(7.0	)		3,607			(4.6	)		(3.1	)

Mutual and pension funds		3,500			(7.1	)		(5.9	)		3,500			(5.2	)		(3.7	)

Managed portfolios		107			(34.2	)		(33.3	)		107			18.6			20.5

Managed and marketed customer funds		24,512			(0.2	)		1.1			24,512			(0.3	)		1.3


Ratios (%) and operating means

ROE		12.19			(1.36	)					13.62			(2.32	)

Efficiency ratio (with amortisations)		47.5			1.8						45.8			2.6

NPL ratio		7.14			0.07						7.14			(0.29	)

NPL coverage		63.1			(0.4	)					63.1			(2.7	)

Number of employees		11,626			(1.5	)					11,626			(2.6	)

Number of branches		752			(2.3	)					752			(6.4	)

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

(**).-

Including all on-balance sheet balances for this item

(***).-

Capital + reserves + profit + valuation adjustments

LOGO


	FINANCIAL REPORT 2015	JANUARY - SEPTEMBER
APPENDIX	FINANCIAL INFORMATION

Portugal

€ million


Income statement	3Q’15			% o/2Q’15			9M’15			% o/9M’14

Net interest income		134			(5.0	)		417			3.5

Net fees		66			(1.5	)		202			(3.4	)

Gains (losses) on financial transactions		16			56.1			41			(22.7	)

Other operating income*		10			(37.4	)		38			24.0

Gross income		226			(3.4	)		698			0.3

Operating expenses		(124	)		1.4			(369	)		(0.2	)

General administrative expenses		(115	)		1.4			(342	)		3.2

Personnel		(72	)		(0.4	)		(216	)		1.0

Other general administrative expenses		(43	)		4.4			(127	)		7.1

Depreciation and amortisation		(9	)		2.4			(27	)		(29.8	)

Net operating income		102			(8.8	)		328			0.9

Net loan-loss provisions		(24	)		13.8			(67	)		(37.3	)

Other income		23			—			(21	)		(73.0	)

Profit before taxes		101			50.4			240			71.3

Tax on profit		(24	)		33.5			(59	)		85.9

Profit from continuing operations		77			56.6			181			67.0

Net profit from discontinued operations		—			—			—			—

Consolidated profit		77			56.6			181			67.0

Minority interests		0			—			0			—

Attributable profit to the Group		77			55.1			181			60.5


Balance sheet

Customer loans**		23,029			(0.3	)		23,029			(1.3	)

Trading portfolio (w/o loans)		1,801			(13.2	)		1,801			(9.8	)

Available-for-sale financial assets		5,736			0.4			5,736			(28.8	)

Due from credit institutions**		2,097			8.4			2,097			(15.0	)

Intangible assets and property and equipment		696			0.5			696			(7.0	)

Other assets		5,999			1.6			5,999			(10.6	)

Total assets/liabilities & shareholders’ equity		39,358			(0.1	)		39,358			(9.1	)

Customer deposits**		24,091			1.2			24,091			(0.2	)

Marketable debt securities**		2,566			(1.6	)		2,566			(32.4	)

Subordinated debt**		0			—			0			(34.2	)

Insurance liabilities		22			(9.9	)		22			(72.5	)

Due to credit institutions**		9,384			(4.2	)		9,384			(22.3	)

Other liabilities		920			(5.3	)		920			19.6

Stockholders’ equity ***		2,376			7.0			2,376			(3.7	)

Other managed and marketed customer funds		2,801			(2.6	)		2,801			19.3

Mutual and pension funds		2,395			(2.9	)		2,395			14.3

Managed portfolios		406			(1.2	)		406			61.0

Managed and marketed customer funds		29,458			0.6			29,458			(2.7	)


Ratios (%) and operating means

ROE		13.16			4.98			10.02			3.48

Efficiency ratio (with amortisations)		54.9			2.6			52.9			(0.3	)

NPL ratio		8.86			0.06			8.86			0.37

NPL coverage		56.2			2.0			56.2			2.3

Number of employees		5,423			(0.2	)		5,423			(2.3	)

Number of branches		575			(0.2	)		575			(7.3	)

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

(**).-

Including all on-balance sheet balances for this item

(***).-

Capital + reserves + profit + valuation adjustments

LOGO


JANUARY - SEPTEMBER	FINANCIAL REPORT 2015
	FINANCIAL INFORMATION	APPENDIX

United Kingdom

€ million


				o/ 2Q’15									o/ 9M’14
Income statement	3Q’15			%			% w/o FX			9M’15			%			% w/o FX

Net interest income		1,250			0.2			(0.4	)		3,691			18.6			6.2

Net fees		273			(6.2	)		(6.9	)		851			12.9			1.0

Gains (losses) on financial transactions		58			(30.0	)		(31.0	)		202			(1.9	)		(12.1	)

Other operating income*		23			503.1			520.5			37			31.7			17.9

Gross income		1,605			(1.3	)		(2.0	)		4,781			16.6			4.4

Operating expenses		(844	)		0.1			(0.6	)		(2,511	)		16.9			4.7

General administrative expenses		(760	)		0.2			(0.5	)		(2,267	)		18.4			6.0

Personnel		(391	)		(6.6	)		(7.3	)		(1,205	)		4.9			(6.1	)

Other general administrative expenses		(369	)		8.4			7.9			(1,062	)		38.8			24.3

Depreciation and amortisation		(84	)		(0.8	)		(1.5	)		(243	)		4.5			(6.4	)

Net operating income		761			(2.8	)		(3.5	)		2,271			16.2			4.1

Net loan-loss provisions		7			—			—			(86	)		(70.8	)		(73.9	)

Other income		(130	)		156.1			157.0			(236	)		29.5			15.9

Profit before taxes		639			(10.5	)		(11.3	)		1,948			32.0			18.2

Tax on profit		(149	)		(6.3	)		(7.2	)		(426	)		39.1			24.6

Profit from continuing operations		489			(11.8	)		(12.5	)		1,523			30.2			16.6

Net profit from discontinued operations		—			—			—			—			—			—

Consolidated profit		489			(11.8	)		(12.5	)		1,523			30.2			16.6

Minority interests		10			3.4			2.6			27			—			—

Attributable profit to the Group		480			(12.0	)		(12.8	)		1,496			27.9			14.5


Balance sheet

Customer loans**		284,003			(1.4	)		2.4			284,003			14.1			8.4

Trading portfolio (w/o loans)		40,406			(2.3	)		1.4			40,406			14.6			8.9

Available-for-sale financial assets		12,940			1.2			5.1			12,940			20.5			14.5

Due from credit institutions**		14,995			(15.1	)		(11.8	)		14,995			(10.6	)		(15.0	)

Intangible assets and property and equipment		3,043			(4.2	)		(0.5	)		3,043			21.6			15.5

Other assets		27,936			4.3			8.3			27,936			(30.6	)		(34.1	)

Total assets/liabilities & shareholders’ equity		383,323			(1.6	)		2.1			383,323			8.1			2.7

Customer deposits**		227,212			(1.3	)		2.4			227,212			11.5			6.0

Marketable debt securities**		72,051			(0.8	)		3.0			72,051			2.3			(2.8	)

Subordinated debt**		4,098			(22.3	)		(19.3	)		4,098			(33.0	)		(36.4	)

Insurance liabilities		—			—			—			—			—			—

Due to credit institutions**		24,871			(5.5	)		(1.9	)		24,871			(2.7	)		(7.6	)

Other liabilities		38,500			(2.2	)		1.5			38,500			14.4			8.7

Stockholders’ equity ***		16,591			5.1			9.1			16,591			10.5			5.0

Other managed and marketed customer funds		9,376			(13.2	)		(9.9	)		9,376			(6.2	)		(10.9	)

Mutual and pension funds		9,238			(13.2	)		(9.9	)		9,238			(6.2	)		(10.9	)

Managed portfolios		138			(14.9	)		(11.7	)		138			(4.9	)		(9.6	)

Managed and marketed customer funds		312,737			(1.9	)		1.8			312,737			7.8			2.4


Ratios (%) and operating means

ROE		11.76			(2.05	)					12.60			1.19

Efficiency ratio (with amortisations)		52.6			0.7						52.5			0.1

NPL ratio		1.51			(0.10	)					1.51			(0.29	)

NPL coverage		39.6			(0.7	)					39.6			(3.8	)

Number of employees		26,154			(0.8	)					26,154			3.0

Number of branches		882			(2.1	)					882			(6.4	)

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

(**).-

Including all on-balance sheet balances for this item

(***).-

Capital + reserves + profit + valuation adjustments

LOGO


	FINANCIAL REPORT 2015	JANUARY - SEPTEMBER
APPENDIX	FINANCIAL INFORMATION

Latin America

€ million


				o/ 2Q’15									o/ 9M’14
Income statement	3Q’15			%			% w/o FX			9M’15			%			% w/o FX

Net interest income		3,334			(7.6	)		3.4			10,489			3.5			9.7

Net fees		1,079			(6.3	)		4.4			3,366			5.7			11.7

Gains (losses) on financial transactions		126			(22.8	)		(13.3	)		457			(0.3	)		(1.5	)

Other operating income*		23			(14.1	)		1.8			48			(18.9	)		(6.3	)

Gross income		4,562			(7.9	)		3.1			14,360			3.8			9.7

Operating expenses		(1,895	)		(6.5	)		4.3			(5,969	)		3.1			8.6

General administrative expenses		(1,738	)		(5.8	)		4.9			(5,448	)		3.8			9.3

Personnel		(956	)		(6.2	)		4.5			(2,978	)		6.3			11.8

Other general administrative expenses		(782	)		(5.3	)		5.5			(2,471	)		1.0			6.4

Depreciation and amortisation		(157	)		(13.8	)		(2.7	)		(521	)		(4.0	)		2.6

Net operating income		2,667			(8.8	)		2.3			8,392			4.3			10.4

Net loan-loss provisions		(1,241	)		1.2			13.0			(3,677	)		(4.8	)		2.2

Other income		(264	)		(3.3	)		9.3			(740	)		29.7			45.3

Ordinary profit before taxes		1,163			(18.4	)		(8.3	)		3,975			9.9			13.9

Tax on profit		(223	)		(40.4	)		(30.1	)		(998	)		12.8			18.1

Ordinary profit from continuing operations		940			(10.6	)		(0.5	)		2,977			9.0			12.5

Net profit from discontinued operations		—			—			—			—			—			—

Ordinary consolidated profit		940			(10.6	)		(0.5	)		2,977			9.0			12.5

Minority interests		156			(10.9	)		(1.5	)		477			(22.8	)		(20.0	)

Ordinary attributable profit to the Group		783			(10.6	)		(0.4	)		2,500			18.3			22.0


Balance sheet

Customer loans**		129,593			(10.7	)		5.3			129,593			(4.8	)		18.4

Trading portfolio (w/o loans)		37,178			7.5			25.8			37,178			10.4			39.7

Available-for-sale financial assets		23,722			(31.6	)		(15.7	)		23,722			4.6			36.5

Due from credit institutions**		25,987			0.9			19.3			25,987			(11.5	)		10.5

Intangible assets and property and equipment		3,416			(15.8	)		1.6			3,416			(11.0	)		16.5

Other assets		44,473			10.3			34.5			44,473			5.9			40.4

Total assets/liabilities & shareholders’ equity		264,369			(7.1	)		10.6			264,369			(1.2	)		24.9

Customer deposits**		118,044			(11.5	)		4.2			118,044			(10.0	)		12.3

Marketable debt securities**		31,939			(13.5	)		5.3			31,939			(3.0	)		27.1

Subordinated debt**		6,088			(8.6	)		11.2			6,088			(7.1	)		20.9

Insurance liabilities		1			(26.0	)		(4.4	)		1			—			—

Due to credit institutions**		41,682			1.9			22.6			41,682			35.9			72.2

Other liabilities		45,884			5.7			25.5			45,884			(1.1	)		26.5

Stockholders’ equity ***		20,731			(10.6	)		6.7			20,731			3.8			30.6

Other managed and marketed customer funds		62,030			(13.3	)		5.8			62,030			(12.5	)		16.0

Mutual and pension funds		57,561			(13.2	)		6.1			57,561			(12.7	)		15.9

Managed portfolios		4,470			(15.2	)		2.6			4,470			(9.4	)		16.7

Managed and marketed customer funds		218,103			(12.3	)		5.0			218,103			(9.7	)		15.6


Ratios (%) and operating means

ROE		14.12			(1.41	)					14.85			0.47

Efficiency ratio (with amortisations)		41.5			0.6						41.6			(0.3	)

NPL ratio		4.65			(0.09 P,	)					4.65			(0.48	)

NPL coverage		85.4			1.0 P,						85.4			2.0

Number of employees		88,893			1.8						88,893			6.6

Number of branches		5,812			0.5						5,812			2.2

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

(**).-

Including all on-balance sheet balances for this item

(***).-

Capital + reserves + profit + valuation adjustments

NOTE: In 2Q’15 and 9M’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

LOGO


JANUARY - SEPTEMBER	FINANCIAL REPORT 2015
	FINANCIAL INFORMATION	APPENDIX

Brazil

€ million


				o/ 2Q’15									o/ 9M’14
Income statement	3Q’15			%			% w/o FX			9M’15			%			% w/o FX

Net interest income		1,976			(9.6	)		3.9			6,416			(4.1	)		7.9

Net fees		622			(8.9	)		4.6			2,012			(1.9	)		10.4

Gains (losses) on financial transactions		6			(91.2	)		(83.3	)		96			(18.0	)		(7.7	)

Other operating income*		53			14.6			27.5			119			55.6			75.0

Gross income		2,656			(10.9	)		2.5			8,643			(3.3	)		8.8

Operating expenses		(1,056	)		(8.3	)		5.3			(3,393	)		(6.9	)		4.7

General administrative expenses		(960	)		(7.2	)		6.3			(3,062	)		(6.1	)		5.7

Personnel		(525	)		(8.1	)		5.3			(1,671	)		(3.9	)		8.1

Other general administrative expenses		(435	)		(6.1	)		7.5			(1,392	)		(8.6	)		2.8

Depreciation and amortisation		(96	)		(17.2	)		(4.0	)		(330	)		(13.9	)		(3.1	)

Net operating income		1,600			(12.6	)		0.7			5,251			(0.8	)		11.6

Net loan-loss provisions		(813	)		(1.9	)		11.8			(2,467	)		(11.7	)		(0.7	)

Other income		(255	)		(3.3	)		9.8			(727	)		29.6			45.8

Ordinary profit before taxes		533			(27.9	)		(14.8	)		2,057			6.2			19.5

Tax on profit		(99	)		(56.9	)		(44.4	)		(582	)		9.2			22.9

Ordinary profit from continuing operations		434			(14.7	)		(1.3	)		1,474			5.1			18.2

Net profit from discontinued operations		—			—			—			—			—			—

Ordinary consolidated profit		434			(14.7	)		(1.3	)		1,474			5.1			18.2

Minority interests		49			(13.7	)		(0.5	)		160			(51.0	)		(44.9	)

Ordinary attributable profit to the Group		385			(14.8	)		(1.4	)		1,315			22.1			37.4


Balance sheet

Customer loans**		58,227			(19.2	)		4.3			58,227			(20.1	)		16.1

Trading portfolio (w/o loans)		14,836			(6.2	)		21.1			14,836			(18.2	)		19.0

Available-for-sale financial assets		15,086			(42.1	)		(25.2	)		15,086			(1.3	)		43.4

Due from credit institutions**		12,564			(5.5	)		22.0			12,564			(16.1	)		21.9

Intangible assets and property and equipment		2,129			(20.3	)		2.9			2,129			(22.4	)		12.9

Other assets		32,139			12.5			45.2			32,139			4.5			51.9

Total assets/liabilities & shareholders’ equity		134,982			(14.8	)		10.0			134,982			(12.8	)		26.7

Customer deposits**		54,847			(18.4	)		5.4			54,847			(22.6	)		12.5

Marketable debt securities**		21,045			(14.8	)		10.1			21,045			(8.5	)		33.0

Subordinated debt**		3,986			(10.5	)		15.6			3,986			(8.8	)		32.6

Insurance liabilities		1			(26.0	)		(4.4	)		1			—			—

Due to credit institutions**		22,412			(10.5	)		15.5			22,412			25.6			82.6

Other liabilities		21,795			(7.6	)		19.3			21,795			(20.9	)		15.0

Stockholders’ equity ***		10,896			(19.3	)		4.2			10,896			(2.5	)		41.7

Other managed and marketed customer funds		41,753			(16.3	)		8.1			41,753			(17.9	)		19.3

Mutual and pension funds		39,129			(16.1	)		8.4			39,129			(17.6	)		19.7

Managed portfolios		2,625			(19.6	)		3.8			2,625			(21.7	)		13.9

Managed and marketed customer funds		121,631			(16.8	)		7.4			121,631			(18.4	)		18.6


Ratios (%) and operating means

ROE		12.40			(1.70	)					13.77			0.94

Efficiency ratio (with amortisations)		39.7			1.1						39.3			(1.5	)

NPL ratio		5.30			0.17						5.30			(0.34	)

NPL coverage		96.0			0.1						96.0			4.6

Number of employees		48,955			0.6						48,955			4.9

Number of branches		3,436			—						3,436			0.3

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

(**).-

Including all on-balance sheet balances for this item

(***).-

Capital + reserves + profit + valuation adjustments

NOTE: In 2Q’15 and 9M’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

LOGO


	FINANCIAL REPORT 2015	JANUARY - SEPTEMBER
APPENDIX	FINANCIAL INFORMATION

Mexico

€ million


				o/ 2Q’15									o/ 9M’14
Income statement	3Q’15			%			% w/o FX			9M’15			%			% w/o FX

Net interest income		600			(3.3	)		4.1			1,818			16.0			13.1

Net fees		194			(9.2	)		(2.0	)		601			5.9			3.2

Gains (losses) on financial transactions		26			(21.4	)		(13.7	)		102			(26.4	)		(28.3	)

Other operating income*		(26	)		89.9			99.8			(54	)		58.9			54.9

Gross income		794			(7.0	)		0.4			2,467			10.2			7.4

Operating expenses		(327	)		(7.4	)		(0.0	)		(1,035	)		8.4			5.7

General administrative expenses		(301	)		(6.4	)		1.0			(948	)		7.8			5.1

Personnel		(163	)		(6.2	)		1.2			(504	)		15.7			12.8

Other general administrative expenses		(138	)		(6.7	)		0.9			(444	)		0.1			(2.4	)

Depreciation and amortisation		(26	)		(17.7	)		(10.7	)		(88	)		15.2			12.3

Net operating income		467			(6.6	)		0.6			1,431			11.5			8.7

Net loan-loss provisions		(227	)		1.5			8.9			(662	)		14.3			11.4

Other income		1			—			—			6			159.2			152.7

Profit before taxes		241			(12.2	)		(5.0	)		776			9.7			6.9

Tax on profit		(48	)		(22.1	)		(15.1	)		(169	)		21.7			18.6

Profit from continuing operations		193			(9.3	)		(2.1	)		607			6.7			4.1

Net profit from discontinued operations		—			—			—			—			—			—

Consolidated profit		193			(9.3	)		(2.1	)		607			6.7			4.1

Minority interests		50			(5.6	)		1.6			152			12.3			9.5

Attributable profit to the Group		143			(10.6	)		(3.3	)		456			5.0			2.4


Balance sheet

Customer loans**		28,198			(1.4	)		6.7			28,198			7.8			20.3

Trading portfolio (w/o loans)		18,448			19.9			29.7			18,448			47.9			65.2

Available-for-sale financial assets		4,939			23.9			34.1			4,939			20.5			34.6

Due from credit institutions**		7,744			9.3			18.3			7,744			(19.4	)		(10.0	)

Intangible assets and property and equipment		363			(21.2	)		(14.7	)		363			(7.4	)		3.4

Other assets		5,716			(1.1	)		7.0			5,716			4.6			16.8

Total assets/liabilities & shareholders’ equity		65,408			6.7			15.5			65,408			12.4			25.5

Customer deposits**		26,540			(7.7	)		(0.1	)		26,540			(7.5	)		3.3

Marketable debt securities**		4,068			(13.8	)		(6.7	)		4,068			7.3			19.8

Subordinated debt**		1,159			(1.8	)		6.2			1,159			12.9			26.0

Insurance liabilities		—			—			—			—			—			—

Due to credit institutions**		11,794			39.2			50.6			11,794			78.2			99.0

Other liabilities		16,801			26.0			36.4			16,801			26.3			41.0

Stockholders’ equity ***		5,045			3.8			12.3			5,045			6.0			18.3

Other managed and marketed customer funds		11,631			(7.4	)		0.3			11,631			(6.2	)		4.7

Mutual and pension funds		11,631			(7.4	)		0.3			11,631			(6.2	)		4.7

Managed portfolios		—			—			—			—			—			—

Managed and marketed customer funds		43,399			(8.1	)		(0.5	)		43,399			(5.5	)		5.5


Ratios (%) and operating means

ROE		11.53			(1.74	)					12.51			(0.15	)

Efficiency ratio (with amortisations)		41.2			(0.2	)					42.0			(0.7	)

NPL ratio		3.54			(0.27	)					3.54			(0.20	)

NPL coverage		93.0			5.5						93.0			2.9

Number of employees		17,704			2.1						17,704			11.3

Number of branches		1,354			(0.1	)					1,354			4.2

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

(**).-

Including all on-balance sheet balances for this item

(***).-

Capital + reserves + profit + valuation adjustments

LOGO


JANUARY - SEPTEMBER	FINANCIAL REPORT 2015	APPENDIX
	FINANCIAL INFORMATION

Chile

€ million


				o/ 2Q’15									o/ 9M’14
Income statement	3Q’15			%			% w/o FX			9M’15			%			% w/o FX

Net interest income		460			(7.5	)		1.3			1,356			9.1			2.1

Net fees		93			(2.7	)		6.7			275			14.1			6.8

Gains (losses) on financial transactions		51			43.1			59.3			151			73.1			62.0

Other operating income*		2			(54.7	)		(47.7	)		10			(31.9	)		(36.3	)

Gross income		606			(4.3	)		4.9			1,792			13.0			5.8

Operating expenses		(243	)		(7.9	)		1.3			(743	)		16.6			9.2

General administrative expenses		(224	)		(8.1	)		1.0			(687	)		16.5			9.0

Personnel		(138	)		(7.4	)		1.6			(415	)		19.3			11.7

Other general administrative expenses		(86	)		(9.4	)		(0.0	)		(272	)		12.5			5.3

Depreciation and amortisation		(18	)		(4.2	)		5.4			(56	)		18.3			10.7

Net operating income		364			(1.7	)		7.5			1,049			10.6			3.5

Net loan-loss provisions		(153	)		20.9			31.9			(410	)		12.5			5.3

Other income		(4	)		50.3			46.3			(1	)		(87.0	)		(87.8	)

Profit before taxes		207			(14.1	)		(5.7	)		638			10.5			3.4

Tax on profit		(25	)		(11.5	)		0.2			(96	)		16.4			8.9

Profit from continuing operations		182			(14.5	)		(6.5	)		541			9.5			2.5

Net profit from discontinued operations		—			—			—			—			—			—

Consolidated profit		182			(14.5	)		(6.5	)		541			9.5			2.5

Minority interests		57			(12.9	)		(5.1	)		164			5.0			(1.7	)

Attributable profit to the Group		125			(15.2	)		(7.1	)		378			11.5			4.4


Balance sheet

Customer loans**		31,874			(5.5	)		3.8			31,874			9.7			13.9

Trading portfolio (w/o loans)		3,665			25.6			37.9			3,665			34.6			39.7

Available-for-sale financial assets		2,449			(13.5	)		(5.0	)		2,449			11.7			16.0

Due from credit institutions**		4,489			11.7			22.6			4,489			23.7			28.4

Intangible assets and property and equipment		343			(7.8	)		1.3			343			15.9			20.4

Other assets		2,658			1.4			11.3			2,658			(3.3	)		0.4

Total assets/liabilities & shareholders’ equity		45,477			(2.2	)		7.4			45,477			11.9			16.2

Customer deposits**		23,211			(4.1	)		5.3			23,211			9.0			13.2

Marketable debt securities**		6,743			(9.4	)		(0.5	)		6,743			11.5			15.8

Subordinated debt**		942			(7.9	)		1.1			942			(18.2	)		(15.1	)

Insurance liabilities		—			—			—			—			—			—

Due to credit institutions**		5,878			1.3			11.3			5,878			14.4			18.8

Other liabilities		5,843			13.9			25.1			5,843			29.9			34.9

Stockholders’ equity ***		2,860			(1.3	)		8.4			2,860			13.6			17.9

Other managed and marketed customer funds		7,307			(6.2	)		3.0			7,307			7.8			12.0

Mutual and pension funds		5,463			(5.6	)		3.7			5,463			5.2			9.2

Managed portfolios		1,845			(8.0	)		1.0			1,845			16.6			21.0

Managed and marketed customer funds		38,204			(5.6	)		3.7			38,204			8.3			12.5


Ratios (%) and operating means

ROE		17.35			(2.31	)					16.97			(1.14	)

Efficiency ratio (with amortisations)		40.0			(1.6	)					41.5			1.3

NPL ratio		5.60			(0.13	)					5.60			(0.38	)

NPL coverage		52.8			1.2						52.8			0.5

Number of employees		12,334			0.2						12,334			1.6

Number of branches		476			(0.6	)					476			—

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

(**).-

Including all on-balance sheet balances for this item

(***).-

Capital + reserves + profit + valuation adjustments

LOGO


	FINANCIAL REPORT 2015	JANUARY - SEPTEMBER
APPENDIX	FINANCIAL INFORMATION

United States

€ million


				o/ 2Q’15									o/ 9M’14
Income statement	3Q’15			%			% w/o FX			9M’15			%			% w/o FX

Net interest income		1,550			0.1			0.7			4,562			29.1			6.2

Net fees		266			(1.9	)		(1.3	)		799			30.7			7.4

Gains (losses) on financial transactions		39			(62.1	)		(62.1	)		193			43.1			17.6

Other operating income*		96			25.5			26.6			265			197.0			144.1

Gross income		1,952			(2.4	)		(1.8	)		5,820			33.2			9.5

Operating expenses		(772	)		5.9			6.5			(2,197	)		35.8			11.7

General administrative expenses		(708	)		6.7			7.4			(2,007	)		36.5			12.2

Personnel		(388	)		2.3			2.9			(1,130	)		37.5			13.1

Other general administrative expenses		(320	)		12.6			13.3			(877	)		35.2			11.1

Depreciation and amortisation		(64	)		(2.8	)		(2.3	)		(191	)		29.1			6.1

Net operating income		1,180			(7.1	)		(6.6	)		3,622			31.7			8.2

Net loan-loss provisions		(750	)		(0.5	)		(0.0	)		(2,144	)		29.4			6.4

Other income		(37	)		(11.9	)		(11.7	)		(97	)		403.9			314.3

Profit before taxes		393			(17.2	)		(16.7	)		1,382			28.4			5.6

Tax on profit		(129	)		(17.9	)		(17.4	)		(444	)		38.6			13.9

Profit from continuing operations		264			(16.9	)		(16.4	)		938			24.1			2.0

Net profit from discontinued operations		—			—			—			—			—			—

Consolidated profit		264			(16.9	)		(16.4	)		938			24.1			2.0

Minority interests		78			(22.6	)		(22.1	)		278			75.0			43.9

Attributable profit to the Group		186			(14.3	)		(13.7	)		660			10.6			(9.1	)


Balance sheet

Customer loans**		80,789			1.4			1.6			80,789			21.0			7.7

Trading portfolio (w/o loans)		1,248			(25.5	)		(25.4	)		1,248			(68.5	)		(72.0	)

Available-for-sale financial assets		18,446			9.9			10.0			18,446			58.1			40.8

Due from credit institutions**		4,305			(13.4	)		(13.3	)		4,305			27.8			13.8

Intangible assets and property and equipment		8,585			8.7			8.8			8,585			42.9			27.2

Other assets		12,065			19.6			19.8			12,065			40.6			25.2

Total assets/liabilities & shareholders’ equity		125,438			3.6			3.7			125,438			25.0			11.3

Customer deposits**		58,970			1.4			1.6			58,970			19.0			5.9

Marketable debt securities**		21,552			2.9			3.0			21,552			36.3			21.4

Subordinated debt**		891			2.1			2.3			891			14.5			2.0

Insurance liabilities		—			—			—			—			—			—

Due to credit institutions**		25,138			16.5			16.6			25,138			82.0			62.0

Other liabilities		7,571			(9.8	)		(9.7	)		7,571			(16.8	)		(25.9	)

Stockholders’ equity ***		11,315			1.6			1.7			11,315			(0.0	)		(11.0	)

Other managed and marketed customer funds		19,980			(4.6	)		(4.5	)		19,980			35.7			20.8

Mutual and pension funds		7,317			(5.1	)		(4.9	)		7,317			115.1			91.5

Managed portfolios		12,663			(4.3	)		(4.2	)		12,663			11.8			(0.5	)

Managed and marketed customer funds		101,394			0.5			0.6			101,394			25.4			11.6


Ratios (%) and operating means

ROE		6.67			(1.14	)					7.88			0.56

Efficiency ratio (with amortisations)		39.6			3.1						37.8			0.7

NPL ratio		2.20			—						2.20			(0.37	)

NPL coverage		218.3			(5.9	)					218.3			34.6

Number of employees		17,592			2.0						17,592			6.2

Number of branches		783			—						783			(3.6	)

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

(**).-

Including all on-balance sheet balances for this item

(***).-

Capital + reserves + profit + valuation adjustments

LOGO


JANUARY - SEPTEMBER	FINANCIAL REPORT 2015
	FINANCIAL INFORMATION	APPENDIX

Corporate Centre

€ million


Income stetement	3Q’15			2Q’15			%			9M’15			9M’14			%

Net interest income		(139	)		(132	)		5.1			(491	)		(498	)		(1.4	)

Net fees		(0	)		(6	)		(98.3	)		(8	)		(15	)		(51.1	)

Gains (losses) on financial transactions		90			(68	)		—			34			537			(93.7	)

Other operating income		(8	)		28			—			1			(15	)		—

Dividends		24			38			(37.5	)		63			25			148.9

Income from equity-accounted method		(16	)		(8	)		96.0			(37	)		(25	)		48.8

Other operating income/expenses		(15	)		(2	)		830.0			(25	)		(16	)		60.4

Gross income		(56	)		(177	)		(68.2	)		(463	)		9			—

Operating expenses		(142	)		(150	)		(5.5	)		(435	)		(436	)		(0.4	)

Net operating income		(199	)		(327	)		(39.4	)		(898	)		(428	)		109.9

Net loan-loss provisions		(1	)		2			—			0			0			42.7

Other income		(148	)		(132	)		12.3			(378	)		(128	)		195.6

Ordinary profit before taxes		(348	)		(458	)		(24.0	)		(1,275	)		(555	)		129.7

Tax on profit		(44	)		(32	)		35.2			(72	)		(8	)		756.1

Ordinary profit from continuing operations		(392	)		(490	)		(20.1	)		(1,347	)		(564	)		139.0

Net profit from discontinued operations		(0	)		—			—			—			—			—

Ordinary consolidated profit		(392	)		(490	)		(20.1	)		(1,347	)		(564	)		139.0

Minority interests		2			(1	)		—			28			(1	)		—

Ordinary attributable profit to the Group		(394	)		(489	)		(19.5	)		(1,375	)		(563	)		144.3


Balance sheet

Trading portfolio (w/o loans)		1,331			3,058			(56.5	)		1,331			3,934			(66.2	)

Available-for-sale financial assets		3,585			3,721			(3.7	)		3,585			2,237			60.2

Investments		26,777			28,593			(6.3	)		26,777			27,364			(2.1	)

Goodwill		77,606			81,700			(5.0	)		77,606			73,201			6.0

Other assets		35,635			36,369			(2.0	)		35,635			34,761			2.5

Total assets/liabilities & shareholders’ equity		144,935			153,442			(5.5	)		144,935			141,497			2.4

Customer deposits*		1,997			2,177			(8.3	)		1,997			1,632			22.3

Marketable debt securities*		24,448			22,220			10.0			24,448			25,940			(5.8	)

Subordinated debt*		8,354			6,861			21.8			8,354			3,481			140.0

Other liabilities		25,139			30,105			(16.5	)		25,139			34,996			(28.2	)

Stockholders’ equity **		84,998			92,078			(7.7	)		84,998			75,447			12.7

Other managed and marketed customer funds		—			—			—			—			—			—

Mutual and pension funds		—			—			—			—			—			—

Managed portfolios		—			—			—			—			—			—

Managed and marketed customer funds		34,798			31,258			11.3			34,798			31,053			12.1


Operating means

Number of employees		2,161			2,184			(1.1	)		2,161			2,033			6.3

(*).-

Including all on-balance sheet balances for this item

(**).-

Capital + reserves + profit + valuation adjustments


	FINANCIAL REPORT 2015	JANUARY - SEPTEMBER
APPENDIX	FINANCIAL INFORMATION

Retail Banking

€ million


				o/ 2Q’15									o/ 9M’14
Income statement	3Q’15			%			% w/o FX			9M’15			%			% w/o FX

Net interest income		7,434			(3.1	)		1.7			22,639			10.2			7.3

Net fees		2,134			(2.6	)		2.4			6,497			5.7			4.8

Gains (losses) on financial transactions		337			(3.2	)		1.1			1,038			16.4			12.0

Other operating income*		190			1.6			4.2			552			277.6			241.4

Gross income		10,094			(2.9	)		1.9			30,726			10.8			8.2

Operating expenses		(4,621	)		(1.7	)		2.8			(13,980	)		8.8			6.5

Net operating income		5,473			(3.9	)		1.1			16,746			12.6			9.6

Net loan-loss provisions		(2,289	)		(1.3	)		4.6			(6,928	)		(6.8	)		(8.4	)

Other income		(479	)		1.1			8.5			(1,325	)		26.3			30.8

Ordinary profit before taxes		2,705			(6.9	)		(2.9	)		8,494			32.9			26.8

Tax on profit		(620	)		(18.4	)		(14.3	)		(2,144	)		41.6			34.9

Ordinary profit from continuing operations		2,085			(2.8	)		1.2			6,350			30.2			24.3

Net profit from discontinued operations		(0	)		—			—			—			(100.0	)		(100.0	)

Ordinary consolidated profit		2,085			(2.8	)		1.2			6,350			30.4			24.4

Minority interests		291			(8.7	)		(4.3	)		893			14.7			12.4

Ordinary attributable profit to the Group		1,794			(1.8	)		2.1			5,456			33.4			26.6

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

NOTE: In 2Q’15 and 9M’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

LOGO


JANUARY - SEPTEMBER	FINANCIAL REPORT 2015
	FINANCIAL INFORMATION	APPENDIX

Santander Global Corporate Banking

€ million


				o/ 2Q’15									o/ 9M’14
Income statement	3Q’15			%			% w/o FX			9M’15			%			% w/o FX

Net interest income		699			(5.7	)		1.0			2,178			20.1			21.2

Net fees		341			(15.2	)		(11.0	)		1,095			5.4			4.4

Gains (losses) on financial transactions		164			182.7			183.8			508			(36.2	)		(38.2	)

Other operating income*		49			(68.3	)		(68.3	)		224			8.2			8.2

Gross income		1,253			(7.5	)		(2.5	)		4,005			3.9			3.3

Operating expenses		(520	)		(0.4	)		2.9			(1,553	)		13.4			10.3

Net operating income		732			(12.0	)		(5.8	)		2,452			(1.4	)		(0.6	)

Net loan-loss provisions		(107	)		(25.5	)		(15.0	)		(449	)		2.6			1.6

Other income		(28	)		19.2			17.0			(46	)		24.6			24.8

Profit before taxes		598			(10.2	)		(4.7	)		1,957			(2.7	)		(1.6	)

Tax on profit		(176	)		(2.6	)		3.1			(555	)		(0.8	)		0.9

Profit from continuing operations		421			(13.0	)		(7.6	)		1,402			(3.4	)		(2.5	)

Net profit from discontinued operations		—			—			—			—			—			—

Consolidated profit		421			(13.0	)		(7.6	)		1,402			(3.4	)		(2.5	)

Minority interests		25			(24.5	)		(13.6	)		98			(16.6	)		(14.1	)

Attributable profit to the Group		396			(12.1	)		(7.1	)		1,304			(2.3	)		(1.6	)

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

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(1)	Global Transaction Banking: includes the business of cash management, trade finance, basic financing and custody.

(2)

Financing Solutions & Advisory: includes the units of origination and distribution of corporate loans and structured financings, bond and securitisation origination teams, corporate finance units (mergers and acquisitions, primary markets of equities, investment solutions for corporate clients via derivatives), and asset & capital structuring.

(3)

Global Markets: includes the sale and distribution of fixed income and equity derivatives, interest rates and inflation; the trading and hedging of exchange rates, and short-term money markets for the Group»s wholesale and retail clients; management of books associated with distribution; and brokerage of equities, and derivatives for investment and hedging solutions.

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Item 2

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Key consolidated data


					Variation
	9M ‘15		9M ‘14		Amount			%			2014
Balance sheet (EUR million)
Total assets		1,320,427		1,241,104		79,324			6.4			1,266,296
Net customer loans		777,020		721,988		55,031			7.6			734,711
Customer deposits		669,236		646,331		22,906			3.5			647,628
Managed and marketed customer funds		1,045,513		1,020,433		25,080			2.5			1,023,437
Stockholders’ equity		88,320		77,325		10,995			14.2			80,806
Total managed and marketed funds		1,479,841		1,402,277		77,564			5.5			1,428,083

*Ordinary income statement (EUR million)**
Net interest income		24,302		21,834		2,468			11.3			29,548
Gross income		34,378		31,572		2,806			8.9			42,612
Pre-provision profit (net operating income)		18,229		16,750		1,480			8.8			22,574
Profit before taxes		8,766		7,140		1,627			22.8			9,720
Attributable profit to the Group		5,106		4,361		745			17.1			5,816

(*).- Variations w/o exchange rate

Net interest income: +8.5%; Gross income: +6.5%; Pre-provision profit: +6.4%; Attributable profit: +11.8%

Ordinary EPS, profitability and efficiency (%)
EPS (euro) (1)		0.349		0.367		(0.018	)		(4.9	)		0.479
RoE (2)		7.5		7.2								7.0
RoTE (2)		11.4		11.3								11.0
RoA		0.6		0.6								0.6
RoRWA		1.3		1.3								1.3
Efficiency ratio (with amortisations)		47.0		46.9								47.0

Solvency and NPL ratios (%)
CET1 fully-loaded (2)		9.85										9.65
CET1 phase-in (2)		12.39		11.44								12.23
NPL ratio		4.50		5.28								5.19
Coverage ratio		71.1		67.5								67.2

Market capitalisation and shares
Shares (millions)		14,317		11,988		2,329			19.4			12,584
Share price (euros)		4.744		7.611		(2.867	)		(37.7	)		6.996
Market capitalisation (EUR million)		67,918		91,241		(23,323	)		(25.6	)		88,041
Book value (euro)		6.19		6.45								6.42
Price / Book value (X)		0.77		1.18								1.09
P/E ratio (X)		10.19		15.55								14.59

Other data
Number of shareholders		3,209,138		3,229,672		(20,534	)		(0.6	)		3,240,395
Number of employees		191,504		183,534		7,970			4.3			185,405
Number of branches		12,901		13,059		(158	)		(1.2	)		12,951

(*).-

In 9M’15 not including not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

(1).-

Ordinary EPS: Ordinary attributable profit including the issuances AT1 cost recorded in shareholders’ equity / average number of shares for the period excluding treasury shares

(2).-

In 2014, pro-forma taking into account the January 2015 capital increase

Note: The financial information in this report was approved by the Board of Directors at its meeting on October, 28 2015, following a favourable report from the Audit Committee on October, 21 2015.

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Ordinary income statement

EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%

Net interest income		24,302			21,834			2,468			11.3
Net fees		7,584			7,172			413			5.8
Gains (losses) on financial transactions		1,702			2,229			(528	)		(23.7	)
Other operating income		790			337			453			134.4
Dividends		347			323			24			7.6
Income from equity-accounted method		293			180			114			63.4
Other operating income/expenses		149			(166	)		315			—
Gross income		34,378			31,572			2,806			8.9
Operating expenses		(16,149	)		(14,822	)		(1,326	)		8.9
General administrative expenses		(14,342	)		(13,125	)		(1,217	)		9.3
Personnel		(8,308	)		(7,543	)		(766	)		10.2
Other general administrative expenses		(6,034	)		(5,583	)		(451	)		8.1
Depreciation and amortisation		(1,806	)		(1,697	)		(109	)		6.4
Net operating income		18,229			16,750			1,480			8.8
Net loan-loss provisions		(7,550	)		(8,110	)		560			(6.9	)
Impairment losses on other assets		(247	)		(225	)		(23	)		10.1
Other income		(1,666	)		(1,275	)		(390	)		30.6
Ordinary profit before taxes		8,766			7,140			1,627			22.8
Tax on profit		(2,649	)		(1,882	)		(768	)		40.8
Ordinary profit from continuing operations		6,117			5,258			859			16.3
Net profit from discontinued operations		—			(7	)		7			(100.0	)
Ordinary consolidated profit		6,117			5,252			866			16.5
Minority interests		1,011			891			120			13.5
Ordinary attributable profit to the Group		5,106			4,361			745			17.1

Ordinary EPS (euros) (1)		0.349			0.367			(0.018	)		(4.9	)
Ordinary diluted EPS (euros) (1)		0.348			0.366			(0.018	)		(4.8	)

Pro memoria:
Average total assets		1,340,924			1,185,486			155,438			13.1
Average stockholders’ equity (2)		90,861			80,845			10,017			12.4

NOTE: In 9M’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

(1).-

Ordinary EPS: Ordinary attributable profit including the issuances AT1 cost recorded in shareholders’ equity / average number of shares for the period excluding treasury shares

(2).-

Stockholders’ equity: Sharedholders’ equity + Equity adjustments by valuation. In 2014, pro-forma taking into account the January 2015 capital increase

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Quarterly income statement

EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15

Net interest income		6,992			7,370			7,471			7,714			8,038			8,281			7,983
Net fees		2,331			2,403			2,439			2,524			2,524			2,586			2,474
Gains (losses) on financial transactions		767			511			952			620			695			372			634
Other operating income		34			204			99			182			186			379			225
Dividends		31			220			72			112			33			239			75
Income from equity-accounted method		65			42			72			64			99			101			93
Other operating income/expenses		(63	)		(58	)		(45	)		6			53			39			57
Gross income		10,124			10,488			10,961			11,040			11,444			11,618			11,316
Operating expenses		(4,847	)		(4,906	)		(5,070	)		(5,216	)		(5,377	)		(5,429	)		(5,342	)
General administrative expenses		(4,256	)		(4,360	)		(4,509	)		(4,656	)		(4,785	)		(4,826	)		(4,731	)
Personnel		(2,455	)		(2,515	)		(2,572	)		(2,670	)		(2,755	)		(2,836	)		(2,717	)
Other general administrative expenses		(1,801	)		(1,844	)		(1,937	)		(1,985	)		(2,030	)		(1,989	)		(2,015	)
Depreciation and amortisation		(590	)		(546	)		(560	)		(560	)		(592	)		(603	)		(611	)
Net operating income		5,277			5,582			5,891			5,824			6,067			6,189			5,974
Net loan-loss provisions		(2,695	)		(2,638	)		(2,777	)		(2,452	)		(2,563	)		(2,508	)		(2,479	)
Impairment losses on other assets		(87	)		(71	)		(67	)		(151	)		(60	)		(78	)		(110	)
Other income		(347	)		(438	)		(491	)		(642	)		(454	)		(605	)		(606	)
Ordinary profit before taxes		2,149			2,435			2,556			2,580			2,990			2,998			2,778
Tax on profit		(569	)		(664	)		(649	)		(814	)		(922	)		(939	)		(787	)
Ordinary profit from continuing operations		1,579			1,771			1,908			1,766			2,067			2,059			1,991
Net profit from discontinued operations		(0	)		(0	)		(7	)		(19	)		0			0			(0	)
Ordinary consolidated profit		1,579			1,771			1,901			1,746			2,067			2,059			1,991
Minority interests		277			318			296			291			350			350			311
Ordinary attributable profit to the Group		1,303			1,453			1,605			1,455			1,717			1,709			1,680

Ordinary EPS (euros) (1)		0.113			0.122			0.131			0.112			0.121			0.115			0.113
Ordinary diluted EPS (euros) (1)		0.113			0.122			0.131			0.112			0.120			0.115			0.113

NOTE: In the second quarter of 2015 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

(1).-

Ordinary EPS: Ordinary attributable profit including the issuances AT1 cost recorded in shareholders’ equity / average number of shares for the period excluding treasury shares

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Ordinary income statement

Constant EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%

Net interest income		24,302			22,391			1,911			8.5
Net fees		7,584			7,232			352			4.9
Gains (losses) on financial transactions		1,702			2,290			(589	)		(25.7	)
Other operating income		790			353			438			124.1
Dividends		347			322			25			7.7
Income from equity-accounted method		294			171			123			71.7
Other operating income/expenses		149			(141	)		290			—
Gross income		34,378			32,266			2,112			6.5
Operating expenses		(16,149	)		(15,138	)		(1,010	)		6.7
General administrative expenses		(14,342	)		(13,416	)		(926	)		6.9
Personnel		(8,308	)		(7,725	)		(583	)		7.6
Other general administrative expenses		(6,034	)		(5,692	)		(343	)		6.0
Depreciation and amortisation		(1,806	)		(1,722	)		(84	)		4.9
Net operating income		18,229			17,128			1,101			6.4
Net loan-loss provisions		(7,550	)		(8,238	)		688			(8.4	)
Impairment losses on other assets		(247	)		(225	)		(22	)		9.7
Other income		(1,666	)		(1,238	)		(427	)		34.5
Ordinary profit before taxes		8,766			7,426			1,340			18.0
Tax on profit		(2,649	)		(1,947	)		(702	)		36.0
Ordinary profit from continuing operations		6,117			5,479			638			11.7
Net profit from discontinued operations		—			(7	)		7			(100.0	)
Ordinary consolidated profit		6,117			5,472			645			11.8
Minority interests		1,011			903			108			11.9
Ordinary attributable profit to the Group		5,106			4,569			537			11.8

NOTE: In 9M’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

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Quarterly income statement

Constant EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15

Net interest income		7,295			7,554			7,542			7,816			7,875			8,156			8,271
Net fees		2,388			2,423			2,422			2,518			2,469			2,551			2,565
Gains (losses) on financial transactions		791			540			960			637			693			365			644
Other operating income		39			208			106			189			186			377			227
Dividends		33			218			72			112			33			238			76
Income from equity-accounted method		64			40			67			60			95			99			100
Other operating income/expenses		(58	)		(49	)		(33	)		17			58			40			51
Gross income		10,513			10,724			11,030			11,161			11,223			11,449			11,706
Operating expenses		(5,023	)		(5,010	)		(5,106	)		(5,269	)		(5,291	)		(5,360	)		(5,497	)
General administrative expenses		(4,413	)		(4,457	)		(4,546	)		(4,703	)		(4,708	)		(4,762	)		(4,872	)
Personnel		(2,547	)		(2,576	)		(2,601	)		(2,705	)		(2,714	)		(2,801	)		(2,794	)
Other general administrative expenses		(1,866	)		(1,881	)		(1,944	)		(1,999	)		(1,994	)		(1,962	)		(2,079	)
Depreciation and amortisation		(609	)		(553	)		(560	)		(566	)		(584	)		(597	)		(625	)
Net operating income		5,490			5,714			5,924			5,892			5,932			6,089			6,209
Net loan-loss provisions		(2,789	)		(2,665	)		(2,784	)		(2,452	)		(2,498	)		(2,466	)		(2,586	)
Impairment losses on other assets		(87	)		(71	)		(67	)		(152	)		(60	)		(77	)		(111	)
Other income		(344	)		(427	)		(467	)		(627	)		(440	)		(596	)		(629	)
Ordinary profit before taxes		2,270			2,550			2,606			2,661			2,934			2,949			2,883
Tax on profit		(595	)		(694	)		(658	)		(831	)		(904	)		(927	)		(818	)
Ordinary profit from continuing operations		1,675			1,856			1,948			1,830			2,030			2,022			2,065
Net profit from discontinued operations		(0	)		(0	)		(7	)		(19	)		0			0			(0	)
Ordinary consolidated profit		1,675			1,856			1,941			1,811			2,030			2,022			2,065
Minority interests		285			325			294			301			345			343			322
Ordinary attributable profit to the Group		1,390			1,531			1,647			1,510			1,685			1,678			1,743

NOTE: In the second quarter of 2015 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

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Exchange rates: 1 euro / currency parity


	Average (income statement)				Period-end (balance sheet)
	9M ‘15		9M ‘14		30.09.15		31.12.14		30.09.14

US$		1.113		1.354		1.120		1.214		1.258
Pound sterling		0.727		0.812		0.739		0.779		0.777
Brazilian real		3.487		3.099		4.481		3.221		3.082
New mexican peso		17.321		17.766		18.977		17.868		16.998
Chilean peso		711.376		759.987		784.882		737.323		755.823
Argentine peso		9.980		10.787		10.558		10.277		10.672
Polish zloty		4.155		4.175		4.245		4.273		4.178

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Net fees

EUR million


					Variation
	9M ‘15		9M ‘14		Amount			%

Fees from services		4,580		4,303		277			6.4
Mutual & pension funds		658		667		(9	)		(1.3	)
Securities and custody		688		577		110			19.1
Insurance		1,659		1,625		33			2.1
Net fee income		7,584		7,172		413			5.8

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Operating expenses

EUR million


					Variation
	9M ‘15		9M ‘14		Amount			%

Personnel expenses		8,308		7,543		766			10.2
General expenses		6,034		5,583		451			8.1
Information technology		823		680		143			21.1
Communications		380		381		(1	)		(0.3	)
Advertising		500		454		45			10.0
Buildings and premises		1,369		1,341		28			2.1
Printed and office material		120		113		7			6.6
Taxes (other than profit tax)		393		341		52			15.3
Other expenses		2,449		2,272		177			7.8
Personnel and general expenses		14,342		13,125		1,217			9.3
Depreciation and amortisation		1,806		1,697		109			6.4
Total operating expenses		16,149		14,822		1,326			8.9

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Net loan-loss provisions

EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%

Non performing loans		8,680			9,069			(389	)		(4.3	)
Country-risk		21			(4	)		25			—
Recovery of written-off assets		(1,151	)		(956	)		(195	)		20.4
Total		7,550			8,110			(560	)		(6.9	)

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Balance sheet

EUR million


							Variation
	30.09.15			30.09.14			Amount			%			31.12.14
Assets
Cash on hand and deposits at central banks		70,841			76,478			(5,637	)		(7.4	)		69,428
Trading portfolio		149,903			142,840			7,063			4.9			148,888
Debt securities		43,882			58,325			(14,443	)		(24.8	)		54,374
Customer loans		8,235			524			7,711			—			2,921
Equities		15,257			9,770			5,487			56.2			12,920
Trading derivatives		80,425			71,533			8,892			12.4			76,858
Deposits from credit institutions		2,104			2,688			(583	)		(21.7	)		1,815
Other financial assets at fair value		52,110			35,925			16,185			45.1			42,673
Customer loans		12,320			10,266			2,054			20.0			8,971
Other (deposits at credit institutions, debt securities and equities		39,790			25,659			14,131			55.1			33,702
Available-for-sale financial assets		117,835			99,226			18,609			18.8			115,251
Debt securities		112,965			94,333			18,632			19.8			110,249
Equities		4,870			4,893			(23	)		(0.5	)		5,001
Loans		816,665			784,406			32,259			4.1			781,635
Deposits at credit institutions		50,413			65,372			(14,959	)		(22.9	)		51,306
Customer loans		756,465			711,198			45,267			6.4			722,819
Debt securities		9,788			7,836			1,951			24.9			7,510
Held-to-maturity investments		4,405			—			4,405			—			—
Investments		3,278			3,619			(341	)		(9.4	)		3,471
Intangible assets and property and equipment		27,264			21,431			5,833			27.2			26,109
Goodwill		26,777			27,364			(587	)		(2.1	)		27,548
Other		51,349			49,814			1,535			3.1			51,293
Total assets		1,320,427			1,241,104			79,324			6.4			1,266,296

Liabilities and shareholders’ equity
Trading portfolio		112,461			107,225			5,236			4.9			109,792
Customer deposits		9,693			9,101			592			6.5			5,544
Marketable debt securities		—			197			(197	)		(100.0	)		—
Trading derivatives		80,572			71,858			8,714			12.1			79,048
Other		22,195			26,068			(3,873	)		(14.9	)		25,200
Other financial liabilities at fair value		58,601			62,969			(4,367	)		(6.9	)		62,318
Customer deposits		27,094			35,247			(8,152	)		(23.1	)		33,127
Marketable debt securities		3,352			4,048			(696	)		(17.2	)		3,830
Due to central banks and credit institutions		28,155			23,674			4,481			18.9			25,360
Financial liabilities at amortized cost		1,009,566			939,586			69,980			7.4			961,053
Due to central banks and credit institutions		141,617			106,229			35,388			33.3			122,437
Customer deposits		632,449			601,983			30,466			5.1			608,956
Marketable debt securities		193,905			191,349			2,555			1.3			193,059
Subordinated debt		19,606			17,334			2,272			13.1			17,132
Other financial liabilities		21,990			22,692			(702	)		(3.1	)		19,468
Insurance liabilities		644			1,671			(1,027	)		(61.5	)		713
Provisions		13,775			14,589			(814	)		(5.6	)		15,376
Other liability accounts		26,693			27,041			(348	)		(1.3	)		27,331
Total liabilities		1,221,740			1,153,081			68,659			6.0			1,176,581
Shareholders’ equity		103,307			87,893			15,414			17.5			91,664
Capital stock		7,158			5,994			1,164			19.4			6,292
Reserves		90,924			77,764			13,159			16.9			80,026
Attributable profit to the Group		5,941			4,361			1,580			36.2			5,816
Less: dividends		(716	)		(226	)		(490	)		216.6			(471	)
Equity adjustments by valuation		(14,987	)		(10,568	)		(4,420	)		41.8			(10,858	)
Minority interests		10,367			10,697			(330	)		(3.1	)		8,909
Total equity		98,687			88,023			10,665			12.1			89,714
Total liabilities and equity		1,320,427			1,241,104			79,324			6.4			1,266,296

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Balance sheet

EUR million


	31.03.14			30.06.14			30.09.14			31.12.14			31.03.15			30.06.15			30.09.15
Assets
Cash on hand and deposits at central banks		82,402			83,877			76,478			69,428			67,741			67,962			70,841
Trading portfolio		128,631			130,773			142,840			148,888			168,709			151,201			149,903
Debt securities		48,765			54,115			58,325			54,374			53,564			51,152			43,882
Customer loans		5,902			1,637			524			2,921			5,726			5,789			8,235
Equities		8,200			9,400			9,770			12,920			15,412			18,272			15,257
Trading derivatives		60,252			64,335			71,533			76,858			89,305			72,557			80,425
Deposits from credit institutions		5,511			1,287			2,688			1,815			4,702			3,431			2,104
Other financial assets at fair value		38,992			30,421			35,925			42,673			48,892			37,245			52,110
Customer loans		11,054			11,031			10,266			8,971			10,201			11,307			12,320
Other (deposits at credit institutions, debt securities and equities		27,939			19,390			25,659			33,702			38,691			25,938			39,790
Available-for-sale financial assets		90,889			90,636			99,226			115,251			124,536			129,035			117,835
Debt securities		86,849			85,773			94,333			110,249			118,974			123,988			112,965
Equities		4,039			4,864			4,893			5,001			5,562			5,047			4,870
Loans		731,597			755,264			784,406			781,635			847,887			844,932			816,665
Deposits at credit institutions		46,357			53,232			65,372			51,306			62,600			55,949			50,413
Customer loans		677,639			694,231			711,198			722,819			778,038			782,137			756,465
Debt securities		7,600			7,801			7,836			7,510			7,250			6,846			9,788
Held-to-maturity investments		—			—			—			—			—			—			4,405
Investments		3,502			3,604			3,619			3,471			3,564			3,559			3,278
Intangible assets and property and equipment		19,035			19,739			21,431			26,109			27,238			27,112			27,264
Goodwill		26,056			26,663			27,364			27,548			28,667			28,594			26,777
Other		47,738			47,191			49,814			51,293			52,455			49,736			51,349
Total assets		1,168,842			1,188,169			1,241,104			1,266,296			1,369,689			1,339,376			1,320,427

Liabilities and shareholders’ equity
Trading portfolio		105,947			96,621			107,225			109,792			125,507			107,888			112,461
Customer deposits		13,197			5,250			9,101			5,544			6,794			7,635			9,693
Marketable debt securities		1			—			197			—			—			—			—
Trading derivatives		59,664			64,255			71,858			79,048			92,439			73,750			80,572
Other		33,084			27,116			26,068			25,200			26,273			26,503			22,195
Other financial liabilities at fair value		51,500			50,446			62,969			62,318			64,078			55,364			58,601
Customer deposits		33,683			32,103			35,247			33,127			40,190			31,756			27,094
Marketable debt securities		5,088			3,864			4,048			3,830			3,958			4,024			3,352
Deposits at credit institutions		12,730			14,479			23,674			25,360			19,929			19,584			28,155
Financial liabilities at amortized cost		889,288			914,107			939,586			961,053			1,031,385			1,029,054			1,009,566
Due to central banks and credit institutions		98,113			104,111			106,229			122,437			142,133			138,888			141,617
Customer deposits		573,255			580,408			601,983			608,956			640,378			648,508			632,449
Marketable debt securities		179,446			187,631			191,349			193,059			204,353			196,429			193,905
Subordinated debt		17,738			19,043			17,334			17,132			19,746			19,836			19,606
Other financial liabilities		20,735			22,914			22,692			19,468			24,775			25,393			21,990
Insurance liabilities		1,548			1,602			1,671			713			670			648			644
Provisions		15,014			15,319			14,589			15,376			15,452			15,470			13,775
Other liability accounts		23,286			24,619			27,041			27,331			30,492			29,000			26,693
Total liabilities		1,086,583			1,102,715			1,153,081			1,176,581			1,267,584			1,237,424			1,221,740
Shareholders’ equity		85,371			86,774			87,893			91,664			99,987			101,904			103,307
Capital stock		5,781			5,889			5,994			6,292			7,030			7,158			7,158
Reserves		78,288			78,129			77,764			80,026			91,240			91,201			90,924
Attributable profit to the Group		1,303			2,756			4,361			5,816			1,717			4,261			5,941
Less: dividends		—			—			(226	)		(471	)		—			(716	)		(716	)
Equity adjustments by valuation		(13,254	)		(11,858	)		(10,568	)		(10,858	)		(8,072	)		(10,407	)		(14,987	)
Minority interests		10,142			10,538			10,697			8,909			10,190			10,455			10,367
Total equity		82,259			85,455			88,023			89,714			102,105			101,952			98,687
Total liabilities and equity		1,168,842			1,188,169			1,241,104			1,266,296			1,369,689			1,339,376			1,320,427

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Customer loans

EUR million


					Variation
	30.09.15		30.09.14		Amount			%			31.12.14

Spanish Public sector		15,207		16,204		(996	)		(6.1	)		17,465
Other residents		152,196		158,190		(5,994	)		(3.8	)		154,905
Commercial bills		8,228		6,459		1,769			27.4			7,293
Secured loans		93,404		97,753		(4,349	)		(4.4	)		96,426
Other loans		50,564		53,978		(3,414	)		(6.3	)		51,187
Non-resident sector		635,840		575,032		60,808			10.6			589,557
Secured loans		398,110		351,910		46,200			13.1			369,266
Other loans		237,730		223,122		14,608			6.5			220,291
Gross customer loans		803,243		749,426		53,817			7.2			761,928
Loan-loss allowances		26,224		27,438		(1,214	)		(4.4	)		27,217
Net customer loans		777,020		721,988		55,031			7.6			734,711
Pro memoria: Doubtful loans		36,864		40,440		(3,576	)		(8.8	)		40,424
Public sector		190		167		23			13.9			167
Other residents		17,130		20,360		(3,229	)		(15.9	)		19,951
Non-resident sector		19,544		19,914		(369	)		(1.9	)		20,306

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Customer loans

EUR million


	31.03.14		30.06.14		30.09.14		31.12.14		31.03.15		30.06.15		30.09.15

Spanish Public sector		15,409		16,227		16,204		17,465		17,392		16,034		15,207
Other residents		162,693		162,352		158,190		154,905		155,846		155,774		152,196
Commercial bills		6,797		6,689		6,459		7,293		8,188		8,471		8,228
Secured loans		97,648		98,962		97,753		96,426		96,271		93,731		93,404
Other loans		58,248		56,701		53,978		51,187		51,387		53,571		50,564
Non-resident sector		543,753		555,784		575,032		589,557		648,820		654,899		635,840
Secured loans		323,789		339,213		351,910		369,266		403,085		410,797		398,110
Other loans		219,964		216,571		223,122		220,291		245,736		244,102		237,730
Gross customer loans		721,856		734,363		749,426		761,928		822,059		826,707		803,243
Loan-loss allowances		27,261		27,464		27,438		27,217		28,094		27,474		26,224
Net customer loans		694,595		706,899		721,988		734,711		793,965		799,233		777,020
Pro memoria: Doubtful loans		41,101		40,948		40,440		40,424		40,711		39,154		36,864
Public sector		88		126		167		167		169		173		190
Other residents		21,741		21,003		20,360		19,951		19,327		18,167		17,130
Non-resident sector		19,272		19,819		19,914		20,306		21,215		20,814		19,544

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Credit risk management *

EUR million


					Variation
	30.09.15		30.09.14		Amount			%			31.12.14

Non-performing loans		37,856		41,727		(3,871	)		(9.3	)		41,709
NPL ratio (%)		4.50		5.28		(0.78 p.	)					5.19
Loan-loss allowances		26,918		28,174		(1,257	)		(4.5	)		28,046
Specific		18,416		22,156		(3,740	)		(16.9	)		21,784
Generic		8,502		6,018		2,484			41.3			6,262
Coverage ratio (%)		71.1		67.5		3.6 p.						67.2
Cost of credit (%) **		1.26		1.52		(0.26 p.	)					1.43

(*).-

Excluding country-risk

(**). - 12 months net loan-loss provisions / average lending

Note: NPL ratio: Non-performing loans / computable assets

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Credit risk management *

EUR million


	31.03.14		30.06.14		30.09.14		31.12.14		31.03.15		30.06.15		30.09.15

Non-performing loans		42,300		42,334		41,727		41,709		41,919		40,273		37,856
NPL ratio (%)		5.52		5.45		5.28		5.19		4.85		4.64		4.50
Loan-loss allowances		28,037		28,256		28,174		28,046		28,894		28,233		26,918
Specific		22,562		22,660		22,156		21,784		20,427		19,444		18,416
Generic		5,475		5,596		6,018		6,262		8,467		8,790		8,502
Coverage ratio (%)		66.3		66.8		67.5		67.2		68.9		70.1		71.1
Cost of credit (%) **		1.65		1.56		1.52		1.43		1.38		1.32		1.26

(*).-

Excluding country-risk

(**).- 12 months net loan-loss provisions / average lending

Note: NPL ratio: Non-performing loans / computable assets

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Non-performing loans by quarter

EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15

Balance at beginning of period		42,420			42,300			42,334			41,727			41,709			41,919			40,273
Net additions		2,536			2,535			1,959			2,623			2,017			1,315			2,132
Increase in scope of consolidation		148			—			—			763			54			1			—
Exchange differences		96			293			463			(299	)		853			(36	)		(1,849	)
Write-offs		(2,900	)		(2,793	)		(3,029	)		(3,105	)		(2,715	)		(2,925	)		(2,699	)
Balance at period-end		42,300			42,334			41,727			41,709			41,919			40,273			37,856

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Managed and marketed customer funds

EUR million


					Variation
	30.09.15		30.09.14		Amount			%			31.12.14

Resident public sector		8,886		9,689		(803	)		(8.3	)		9,349
Other residents		164,067		162,313		1,754			1.1			163,340
Demand deposits		105,730		82,530		23,200			28.1			88,312
Time deposits		56,134		75,837		(19,703	)		(26.0	)		67,495
Other		2,203		3,945		(1,743	)		(44.2	)		7,532
Non-resident sector		496,283		474,329		21,954			4.6			474,939
Demand deposits		302,251		259,141		43,110			16.6			273,889
Time deposits		139,295		156,448		(17,153	)		(11.0	)		151,113
Other		54,736		58,739		(4,003	)		(6.8	)		49,937
Customer deposits		669,236		646,331		22,906			3.5			647,628
Debt securities		197,257		195,595		1,662			0.8			196,890
Subordinated debt		19,606		17,334		2,272			13.1			17,132
On-balance-sheet customer funds		886,099		859,259		26,840			3.1			861,649
Mutual funds		122,365		124,911		(2,545	)		(2.0	)		124,708
Pension funds		11,220		11,341		(120	)		(1.1	)		11,481
Managed portfolios		25,828		24,923		906			3.6			25,599
Other managed and marketed customer funds		159,414		161,174		(1,760	)		(1.1	)		161,788
Managed and marketed customer funds		1,045,513		1,020,433		25,080			2.5			1,023,437

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Managed and marketed customer funds

EUR million


	31.03.14		30.06.14		30.09.14		31.12.14		31.03.15		30.06.15		30.09.15
Resident public sector		7,856		7,357		9,689		9,349		12,706		8,526		8,886
Other residents		158,292		163,548		162,313		163,340		163,702		164,045		164,067
Demand deposits		76,468		79,661		82,530		88,312		94,580		102,770		105,730
Time deposits		76,823		77,913		75,837		67,495		65,118		58,925		56,134
Other		5,000		5,974		3,945		7,532		4,005		2,350		2,203
Non-resident sector		453,988		446,855		474,329		474,939		510,954		515,328		496,283
Demand deposits		232,123		244,068		259,141		273,889		299,008		309,849		302,251
Time deposits		163,845		155,736		156,448		151,113		156,089		149,958		139,295
Other		58,020		47,052		58,739		49,937		55,856		55,521		54,736
Customer deposits		620,135		617,761		646,331		647,628		687,362		687,900		669,236
Debt securities		184,534		191,495		195,595		196,890		208,312		200,453		197,257
Subordinated debt		17,738		19,043		17,334		17,132		19,746		19,836		19,606
On-balance-sheet customer funds		822,408		828,299		859,259		861,649		915,419		908,189		886,099
Mutual funds		111,392		119,739		124,911		124,708		135,254		135,582		122,365
Pension funds		11,064		11,258		11,341		11,481		11,960		11,503		11,220
Managed portfolios		21,839		23,198		24,923		25,599		28,541		27,675		25,828
Other managed and marketed customer funds		144,296		154,195		161,174		161,788		175,755		174,760		159,414
Managed and marketed customer funds		966,704		982,494		1,020,433		1,023,437		1,091,174		1,082,948		1,045,513

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Eligible capital. September 2015

EUR million


	Phase-in		Fully loaded

CET1		72,576		57,577
Basic capital		72,576		63,196
Eligible capital		82,842		74,519
Risk-weighted assets		585,816		584,322
CET1 capital ratio		12.39		9.85
T1 capital ratio		12.39		10.82
BIS ratio		14.14		12.75

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Eligible capital (fully loaded)*

EUR million


							Variation
	30.09.15			31.12.14			Amount			%

Capital stock and reserves		98,328			93,748			4,580			4.9
Attributable profit		5,941			5,816			125			2.2
Dividends		(1,725	)		(1,014	)		(711	)		70.1
Other retained earnings		(16,305	)		(11,468	)		(4,837	)		42.2
Minority interests		5,375			4,131			1,244			30.1
Goodwill and intangible assets		(28,515	)		(29,164	)		649			(2.2	)
Treasury stock and other deductios		(5,522	)		(5,767	)		245			(4.3	)
Core CET1		57,577			56,282			1,295			2.3
Preferred shares and other eligibles T1		5,619			4,728			891			18.9
Tier 1		63,196			61,010			2,186			3.6
Generic funds and eligible T2 instruments		11,322			7,561			3,761			49.7
Eligible capital		74,519			68,571			5,948			8.7
Risk-weighted assets		584,322			583,366			956			0.2

CET1 capital ratio		9.85			9.65			0.20
T1 capital ratio		10.82			10.46			0.36
BIS ratio		12.75			11.75			1.00

(*).-

In 2014, pro-forma data taking into account the January 2015 capital increase

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Key data by principal segments


	Net operating income									Ordinary profit to the Group *									Efficiency ratio (%)				Ordinary ROE (%) *
	9M ‘15			9M ‘14			Var (%)			9M ‘15			9M ‘14			Var (%)			9M ‘15		9M ‘14		9M ‘15		9M ‘14
Income statement (EUR million)
Continental Europe		4,843			4,424			9.5			1,825			1,043			74.9			51.0		52.2		7.93		4.96
o/w: Spain		2,268			2,313			(1.9	)		883			538			64.2			53.2		53.2		10.06		6.48
Santander Consumer Finance		1,662			1,292			28.7			702			550			27.6			44.0		45.7		12.12		10.28
Poland		534			582			(8.2	)		243			262			(7.0	)		45.8		43.1		13.62		15.94
Portugal		328			325			0.9			181			113			60.5			52.9		53.2		10.02		6.54
United Kingdom		2,271			1,954			16.2			1,496			1,170			27.9			52.5		52.4		12.60		11.41
Latin America *		8,392			8,048			4.3			2,500			2,114			18.3			41.6		41.8		14.85		14.38
o/w: Brazil *		5,251			5,292			(0.8	)		1,315			1,076			22.1			39.3		40.8		13.77		12.82
Mexico		1,431			1,284			11.5			456			434			5.0			42.0		42.6		12.51		12.67
Chile		1,049			949			10.6			378			339			11.5			41.5		40.2		16.97		18.11
USA		3,622			2,751			31.7			660			597			10.6			37.8		37.0		7.88		7.32
Operating areas *		19,127			17,177			11.4			6,481			4,924			31.6			45.1		45.6		10.78		9.09
Corporate Centre		(898	)		(428	)		109.9			(1,375	)		(563	)		144.3
Total Group *		18,229			16,750			8.8			5,106			4,361			17.1			47.0		46.9		7.49		7.19
(*).- In 9M’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil
	Net customer loans									Customer deposits									NPL ratio (%)				NPL coverage (%)
	30.09.15			30.09.14			Var (%)			30.09.15			30.09.14			Var (%)			30.09.15		30.09.14		30.09.15		30.09.14
Activity (EUR million)
Continental Europe		278,723			265,807			4.9			263,013			260,302			1.0			7.89		8.92		60.4		58.1
o/w: Spain		156,121			156,390			(0.2	)		181,636			182,273			(0.3	)		6.61		7.57		47.8		45.5
Santander Consumer Finance		70,067			58,596			19.6			31,789			30,571			4.0			4.15		3.97		107.2		106.4
Poland		18,466			17,217			7.3			20,404			20,224			0.9			7.14		7.43		63.1		65.8
Portugal		23,029			23,333			(1.3	)		24,091			24,131			(0.2	)		8.86		8.49		56.2		53.9
United Kingdom		284,003			248,940			14.1			227,212			203,721			11.5			1.51		1.80		39.6		43.4
Latin America		129,593			136,111			(4.8	)		118,044			131,120			(10.0	)		4.65		5.13		85.4		83.4
o/w: Brazil		58,227			72,918			(20.1	)		54,847			70,892			(22.6	)		5.30		5.64		96.0		91.4
Mexico		28,198			26,162			7.8			26,540			28,691			(7.5	)		3.54		3.74		93.0		90.1
Chile		31,874			29,057			9.7			23,211			21,294			9.0			5.60		5.98		52.8		52.3
USA		80,789			66,782			21.0			58,970			49,556			19.0			2.20		2.57		218.3		183.7
Operating areas		773,108			717,640			7.7			667,240			644,698			3.5			4.52		5.29		70.5		67.0
Total Group		777,020			721,988			7.6			669,236			646,331			3.5			4.50		5.28		71.1		67.5


	Employees				Branches
	30.09.15		30.09.14		30.09.15		30.09.14
Operating means
Continental Europe		56,704		56,177		5,424		5,616
o/w: Spain		24,231		25,135		3,487		3,611
Santander Consumer Finance		14,138		12,345		592		572
Poland		11,626		11,933		752		803
Portugal		5,423		5,552		575		620
United Kingdom		26,154		25,384		882		942
Latin America		88,893		83,378		5,812		5,689
o/w: Brazil		48,955		46,687		3,436		3,427
Mexico		17,704		15,912		1,354		1,299
Chile		12,334		12,135		476		476
USA		17,592		16,562		783		812
Operating areas		189,343		181,501		12,901		13,059
Corporate Centre		2,161		2,033
Total Group		191,504		183,534		12,901		13,059

LOGO

Operating areas

EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		24,792			22,331			2,461			11.0
Net fees		7,592			7,187			405			5.6
Gains (losses) on financial transactions		1,668			1,692			(25	)		(1.5	)
Other operating income *		789			352			437			124.0
Gross income		34,841			31,563			3,278			10.4
Operating expenses		(15,714	)		(14,386	)		(1,328	)		9.2
General administrative expenses		(14,405	)		(13,109	)		(1,296	)		9.9
Personnel		(7,722	)		(7,107	)		(616	)		8.7
Other general administrative expenses		(6,683	)		(6,002	)		(681	)		11.3
Depreciation and amortisation		(1,308	)		(1,277	)		(32	)		2.5
Net operating income		19,127			17,177			1,950			11.4
Net loan-loss provisions		(7,550	)		(8,110	)		560			(6.9	)
Other income		(1,535	)		(1,372	)		(163	)		11.9
Ordinary profit before taxes		10,042			7,695			2,347			30.5
Tax on profit		(2,578	)		(1,873	)		(704	)		37.6
Ordinary profit from continuing operations		7,464			5,822			1,642			28.2
Net profit from discontinued operations		—			(7	)		7			(100.0	)
Ordinary consolidated profit		7,464			5,815			1,649			28.4
Minority interests		983			892			92			10.3
Ordinary attributable profit to the Group		6,481			4,924			1,557			31.6

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses


					Variation
	30.09.15		30.09.14		Amount			%
Balance sheet
Customer loans **		773,108		717,640		55,468			7.7
Trading portfolio (w/o loans)		139,151		136,469		2,682			2.0
Available-for-sale financial assets		114,250		96,988		17,261			17.8
Due from credit institutions **		132,666		113,863		18,804			16.5
Intangible assets and property and equipment		26,216		20,741		5,474			26.4
Other assets		117,334		114,998		2,336			2.0
Total assets/liabilities & shareholders’ equity		1,302,725		1,200,700		102,025			8.5
Customer deposits **		667,240		644,698		22,541			3.5
Marketable debt securities **		172,809		169,655		3,154			1.9
Subordinated debt **		11,252		13,853		(2,600	)		(18.8	)
Insurance liabilities		644		1,671		(1,027	)		(61.5	)
Due to credit institutions **		216,757		147,170		69,587			47.3
Other liabilities		153,095		148,573		4,521			3.0
Stockholders’ equity ***		80,928		75,079		5,849			7.8
Other managed and marketed customer funds		159,414		161,174		(1,760	)		(1.1	)
Mutual funds		122,365		124,911		(2,545	)		(2.0	)
Pension funds		11,220		11,341		(120	)		(1.1	)
Managed portfolios		25,828		24,923		906			3.6
Managed and marketed customer funds		1,010,715		989,379		21,335			2.2

(**).-

Including all on-balance sheet balances for this item

(***).-

Capital + reserves + profit + valuation adjustments

NOTE: In 9M’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil


Ratios (%) and other data
ROE	10.78	9.09	1.69 p.
Efficiency ratio (with amortisations)	45.1	45.6	(0.5 p.	)
NPL ratio	4.52	5.29	(0.77 p.	)
NPL coverage	70.5	67.0	3.5 p.
Number of employees	189,343	181,501	7,842		4.3
Number of branches	12,901	13,059	(158	)	(1.2	)

LOGO

Operating areas

EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		7,225			7,523			7,583			7,829			8,259			8,413			8,121
Net fees		2,338			2,407			2,442			2,542			2,526			2,592			2,474
Gains (losses) on financial transactions		552			426			714			458			684			440			544
Other operating income *		34			214			105			189			205			351			233
Gross income		10,149			10,570			10,844			11,017			11,674			11,795			11,372
Operating expenses		(4,702	)		(4,760	)		(4,924	)		(5,067	)		(5,235	)		(5,279	)		(5,200	)
General administrative expenses		(4,246	)		(4,362	)		(4,501	)		(4,628	)		(4,809	)		(4,825	)		(4,772	)
Personnel		(2,300	)		(2,363	)		(2,444	)		(2,503	)		(2,561	)		(2,638	)		(2,524	)
Other general administrative expenses		(1,946	)		(1,998	)		(2,058	)		(2,125	)		(2,248	)		(2,187	)		(2,247	)
Depreciation and amortisation		(456	)		(398	)		(422	)		(439	)		(426	)		(454	)		(428	)
Net operating income		5,446			5,810			5,921			5,950			6,438			6,517			6,172
Net loan-loss provisions		(2,697	)		(2,637	)		(2,777	)		(2,454	)		(2,562	)		(2,510	)		(2,478	)
Other income		(406	)		(460	)		(505	)		(468	)		(417	)		(551	)		(568	)
Ordinary profit before taxes		2,343			2,713			2,638			3,029			3,460			3,456			3,126
Tax on profit		(577	)		(677	)		(619	)		(675	)		(927	)		(907	)		(743	)
Ordinary profit from continuing operations		1,767			2,036			2,019			2,354			2,533			2,549			2,383
Net profit from discontinued operations		(0	)		(0	)		(7	)		(19	)		0			0			(0	)
Ordinary consolidated profit		1,767			2,036			2,013			2,335			2,533			2,549			2,383
Minority interests		277			318			297			291			324			351			309
Ordinary attributable profit to the Group		1,489			1,718			1,716			2,043			2,209			2,198			2,074

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


	31.03.14		30.06.14		30.09.14		31.12.14		31.03.15		30.06.15		30.09.15
Balance sheet
Customer loans **		688,025		702,679		717,640		730,301		788,337		793,222		773,108
Trading portfolio (w/o loans)		114,653		125,128		136,469		142,031		155,363		139,904		139,151
Available-for-sale financial assets		88,974		88,206		96,988		111,952		121,160		125,314		114,250
Due from credit institutions **		105,998		96,069		113,863		106,259		129,653		113,202		132,666
Intangible assets and property and equipment		18,535		19,088		20,741		25,312		26,426		26,288		26,216
Other assets		117,413		116,029		114,998		111,498		115,523		105,130		117,334
Total assets/liabilities & shareholders’ equity		1,133,598		1,147,198		1,200,700		1,227,354		1,336,462		1,303,060		1,302,725
Customer deposits **		618,791		616,217		644,698		642,367		684,808		685,723		667,240
Marketable debt securities **		155,756		163,197		169,655		171,932		181,901		178,233		172,809
Subordinated debt **		13,565		13,780		13,853		13,025		13,890		12,975		11,252
Insurance liabilities		1,548		1,602		1,671		713		670		648		644
Due to credit institutions **		142,385		141,670		147,170		170,763		201,645		190,375		216,757
Other liabilities		129,158		137,235		148,573		149,679		174,028		153,987		153,095
Stockholders’ equity ***		72,394		73,496		75,079		78,875		79,520		81,120		80,928
Other managed and marketed customer funds		144,296		154,195		161,174		161,788		175,755		174,760		159,414
Mutual funds		111,392		119,739		124,911		124,708		135,254		135,582		122,365
Pension funds		11,064		11,258		11,341		11,481		11,960		11,503		11,220
Managed portfolios		21,839		23,198		24,923		25,599		28,541		27,675		25,828
Managed and marketed customer funds		932,408		947,389		989,379		989,112		1,056,354		1,051,690		1,010,715

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

NOTE: In 2Q’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil


Other information
NPL ratio	5.54	5.46	5.29	5.19	4.87	4.68	4.52
NPL coverage	66.0	66.4	67.0	66.6	68.3	69.4	70.5
Cost of credit	1.61	1.55	1.50	1.44	1.38	1.33	1.27

LOGO

Operating areas

Constant EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		24,792			22,889			1,904			8.3
Net fees		7,592			7,248			344			4.7
Gains (losses) on financial transactions		1,668			1,753			(86	)		(4.9	)
Other operating income *		789			368			421			114.6
Gross income		34,841			32,258			2,583			8.0
Operating expenses		(15,714	)		(14,702	)		(1,012	)		6.9
General administrative expenses		(14,405	)		(13,400	)		(1,005	)		7.5
Personnel		(7,722	)		(7,289	)		(433	)		5.9
Other general administrative expenses		(6,683	)		(6,111	)		(572	)		9.4
Depreciation and amortisation		(1,308	)		(1,302	)		(7	)		0.5
Net operating income		19,127			17,556			1,571			9.0
Net loan-loss provisions		(7,550	)		(8,238	)		688			(8.3	)
Other income		(1,535	)		(1,336	)		(199	)		14.9
Ordinary profit before taxes		10,042			7,982			2,060			25.8
Tax on profit		(2,578	)		(1,939	)		(639	)		32.9
Ordinary profit from continuing operations		7,464			6,043			1,422			23.5
Net profit from discontinued operations		—			(7	)		7			(100.0	)
Ordinary consolidated profit		7,464			6,036			1,428			23.7
Minority interests		983			904			79			8.7
Ordinary attributable profit to the Group		6,481			5,131			1,349			26.3

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses


					Variation
	30.09.15		30.09.14		Amount			%
Balance sheet
Customer loans **		773,108		711,256		61,853			8.7
Trading portfolio (w/o loans)		139,151		131,776		7,374			5.6
Available-for-sale financial assets		114,250		93,602		20,647			22.1
Due from credit institutions **		132,666		109,532		23,135			21.1
Intangible assets and property and equipment		26,216		20,778		5,438			26.2
Other assets		117,334		107,840		9,494			8.8
Total assets/liabilities & shareholders’ equity		1,302,725		1,174,784		127,941			10.9
Customer deposits **		667,240		635,039		32,201			5.1
Marketable debt securities **		172,809		167,019		5,790			3.5
Subordinated debt **		11,252		12,750		(1,498	)		(11.8	)
Insurance liabilities		644		1,670		(1,026	)		(61.4	)
Due to credit institutions **		216,757		143,838		72,919			50.7
Other liabilities		153,095		141,288		11,807			8.4
Stockholders’ equity ***		80,928		73,179		7,748			10.6
Other managed and marketed customer funds		159,417		146,216		13,201			9.0
Mutual funds		122,365		109,487		12,879			11.8
Pension funds		11,220		11,341		(120	)		(1.1	)
Managed portfolios		25,828		25,389		439			1.7
Managed and marketed customer funds		1,010,717		961,024		49,693			5.2

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

NOTE: In 9M’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

LOGO

Operating areas

Constant EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		7,528			7,707			7,654			7,931			8,095			8,288			8,409
Net fees		2,395			2,427			2,426			2,536			2,471			2,557			2,565
Gains (losses) on financial transactions		577			455			722			475			681			433			554
Other operating income *		39			218			111			196			206			348			235
Gross income		10,538			10,806			10,913			11,137			11,453			11,626			11,763
Operating expenses		(4,878	)		(4,864	)		(4,960	)		(5,120	)		(5,149	)		(5,209	)		(5,355	)
General administrative expenses		(4,403	)		(4,459	)		(4,538	)		(4,675	)		(4,731	)		(4,762	)		(4,912	)
Personnel		(2,392	)		(2,424	)		(2,473	)		(2,537	)		(2,519	)		(2,602	)		(2,601	)
Other general administrative expenses		(2,011	)		(2,035	)		(2,065	)		(2,138	)		(2,212	)		(2,160	)		(2,311	)
Depreciation and amortisation		(475	)		(405	)		(422	)		(444	)		(418	)		(448	)		(443	)
Net operating income		5,660			5,943			5,953			6,018			6,303			6,416			6,408
Net loan-loss provisions		(2,791	)		(2,664	)		(2,784	)		(2,454	)		(2,497	)		(2,468	)		(2,585	)
Other income		(404	)		(450	)		(482	)		(454	)		(402	)		(541	)		(592	)
Ordinary profit before taxes		2,465			2,829			2,688			3,110			3,404			3,407			3,231
Tax on profit		(603	)		(707	)		(629	)		(692	)		(909	)		(895	)		(774	)
Ordinary profit from continuing operations		1,862			2,121			2,059			2,418			2,496			2,512			2,457
Net profit from discontinued operations		(0	)		(0	)		(7	)		(19	)		0			0			(0	)
Ordinary consolidated profit		1,862			2,121			2,053			2,399			2,496			2,512			2,457
Minority interests		285			325			294			301			319			344			320
Ordinary attributable profit to the Group		1,577			1,796			1,759			2,098			2,177			2,168			2,137

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses


	31.03.14		30.06.14		30.09.14		31.12.14		31.03.15		30.06.15		30.09.15
Balance sheet
Customer loans **		707,697		709,990		711,256		725,234		753,237		759,508		773,108
Trading portfolio (w/o loans)		115,172		122,060		131,776		138,686		148,738		133,343		139,151
Available-for-sale financial assets		85,826		84,405		93,602		106,788		113,931		118,192		114,250
Due from credit institutions **		106,035		94,728		109,532		103,882		124,514		108,461		132,666
Intangible assets and property and equipment		18,722		19,374		20,778		25,289		25,253		25,462		26,216
Other assets		115,300		110,506		107,840		105,791		106,216		96,807		117,334
Total assets/liabilities & shareholders’ equity		1,148,752		1,141,063		1,174,784		1,205,670		1,271,889		1,241,773		1,302,725
Customer deposits **		630,722		617,203		635,039		634,928		654,360		656,503		667,240
Marketable debt securities **		160,087		163,954		167,019		170,179		173,079		168,654		172,809
Subordinated debt **		12,964		12,738		12,750		12,036		12,464		11,593		11,252
Insurance liabilities		1,547		1,601		1,670		713		670		648		644
Due to credit institutions **		144,161		140,946		143,838		166,465		192,556		182,144		216,757
Other liabilities		126,087		131,442		141,288		144,740		164,188		145,609		153,095
Stockholders’ equity ***		73,185		73,179		73,179		76,608		74,571		76,622		80,928
Other managed and marketed customer funds		133,903		140,636		146,216		148,641		161,056		161,331		159,417
Mutual funds		99,542		104,802		109,487		111,429		122,156		123,095		122,365
Pension funds		11,064		11,258		11,341		11,481		11,960		11,503		11,220
Managed portfolios		23,296		24,576		25,389		25,731		26,940		26,733		25,828
Managed and marketed customer funds		937,676		934,531		961,024		965,785		1,000,960		998,081		1,010,717

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

NOTE: In 2Q’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

LOGO

Continental Europe

EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		6,050			5,549			500			9.0
Net fees		2,576			2,636			(61	)		(2.3	)
Gains (losses) on financial transactions		815			893			(78	)		(8.7	)
Other operating income *		439			175			264			150.3
Gross income		9,880			9,254			625			6.8
Operating expenses		(5,037	)		(4,830	)		(207	)		4.3
General administrative expenses		(4,683	)		(4,476	)		(207	)		4.6
Personnel		(2,410	)		(2,335	)		(75	)		3.2
Other general administrative expenses		(2,273	)		(2,141	)		(132	)		6.2
Depreciation and amortisation		(354	)		(354	)		(0	)		0.0
Net operating income		4,843			4,424			418			9.5
Net loan-loss provisions		(1,643	)		(2,297	)		654			(28.5	)
Other income		(462	)		(600	)		138			(22.9	)
Profit before taxes		2,737			1,527			1,210			79.2
Tax on profit		(710	)		(362	)		(348	)		96.1
Profit from continuing operations		2,027			1,165			862			74.0
Net profit from discontinued operations		—			(7	)		7			(100.0	)
Consolidated profit		2,027			1,158			868			75.0
Minority interests		202			115			87			75.3
Attributable profit to the Group		1,825			1,043			782			74.9

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses


					Variation
	30.09.15		30.09.14		Amount			%
Balance sheet
Customer loans **		278,723		265,807		12,916			4.9
Trading portfolio (w/o loans)		60,318		63,550		(3,232	)		(5.1	)
Available-for-sale financial assets		59,142		51,901		7,241			14.0
Due from credit institutions **		87,379		64,365		23,014			35.8
Intangible assets and property and equipment		11,172		8,391		2,781			33.1
Other assets		32,859		24,168		8,692			36.0
Total assets/liabilities & shareholders’ equity		529,594		478,182		51,412			10.8
Customer deposits **		263,013		260,302		2,712			1.0
Marketable debt securities **		47,267		50,508		(3,241	)		(6.4	)
Subordinated debt **		175		403		(228	)		(56.6	)
Insurance liabilities		643		1,671		(1,028	)		(61.5	)
Due to credit institutions **		125,066		77,125		47,941			62.2
Other liabilities		61,140		59,400		1,740			2.9
Stockholders’ equity ***		32,290		28,773		3,517			12.2
Other managed and marketed customer funds		68,030		65,556		2,473			3.8
Mutual funds		48,249		45,698		2,551			5.6
Pension funds		11,220		11,341		(120	)		(1.1	)
Managed portfolios		8,558		8,517		40			0.5
Managed and marketed customer funds		378,484		376,769		1,715			0.5

().- Including all on-balance sheet balances for this item (*).- Capital + reserves + profit + valuation adjustments

Ratios (%) and other data
ROE		7.93		4.96		2.97 p.
Efficiency ratio (with amortisations)		51.0		52.2		(1.2 p.	)
NPL ratio		7.89		8.92		(1.03 p.	)
NPL coverage		60.4		58.1		2.3 p.
Number of employees		56,704		56,177		527			0.9
Number of branches		5,424		5,616		(192	)		(3.4	)

LOGO

Continental Europe

EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		1,810			1,881			1,858			1,967			2,057			2,006			1,987
Net fees		889			898			849			864			842			878			855
Gains (losses) on financial transactions		324			230			339			327			404			90			321
Other operating income *		5			136			34			91			106			243			90
Gross income		3,029			3,146			3,080			3,249			3,409			3,218			3,253
Operating expenses		(1,634	)		(1,611	)		(1,584	)		(1,614	)		(1,670	)		(1,679	)		(1,689	)
General administrative expenses		(1,503	)		(1,499	)		(1,473	)		(1,496	)		(1,560	)		(1,557	)		(1,565	)
Personnel		(790	)		(777	)		(767	)		(778	)		(800	)		(821	)		(790	)
Other general administrative expenses		(713	)		(722	)		(706	)		(718	)		(761	)		(737	)		(775	)
Depreciation and amortisation		(131	)		(112	)		(111	)		(118	)		(109	)		(121	)		(124	)
Net operating income		1,394			1,534			1,496			1,635			1,739			1,539			1,564
Net loan-loss provisions		(791	)		(770	)		(737	)		(583	)		(637	)		(512	)		(495	)
Other income		(197	)		(215	)		(188	)		(93	)		(139	)		(186	)		(137	)
Profit before taxes		407			550			571			959			963			842			932
Tax on profit		(88	)		(134	)		(140	)		(277	)		(252	)		(216	)		(242	)
Profit from continuing operations		318			416			431			682			712			625			690
Net profit from discontinued operations		(0	)		(0	)		(7	)		(19	)		0			0			(0	)
Consolidated profit		318			415			425			663			712			625			690
Minority interests		35			37			43			58			72			65			65
Attributable profit to the Group		284			378			381			604			640			560			625

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses


	31.03.14		30.06.14		30.09.14		31.12.14		31.03.15		30.06.15		30.09.15
Balance sheet
Customer loans **		266,531		268,489		265,807		268,735		279,925		280,580		278,723
Trading portfolio (w/o loans)		55,734		59,107		63,550		65,863		76,199		62,294		60,318
Available-for-sale financial assets		44,947		45,250		51,901		56,845		60,661		61,076		59,142
Due from credit institutions **		64,024		57,594		64,365		66,602		79,357		64,823		87,379
Intangible assets and property and equipment		8,938		8,302		8,391		11,796		11,241		11,158		11,172
Other assets		24,901		25,306		24,168		26,757		27,850		27,938		32,859
Total assets/liabilities & shareholders’ equity		465,076		464,048		478,182		496,598		535,232		507,870		529,594
Customer deposits **		259,011		255,909		260,302		256,909		268,190		263,955		263,013
Marketable debt securities **		49,107		51,216		50,508		54,431		49,534		47,754		47,267
Subordinated debt **		407		409		403		409		441		171		175
Insurance liabilities		1,548		1,602		1,671		713		669		647		643
Due to credit institutions **		74,718		70,374		77,125		90,305		113,197		101,540		125,066
Other liabilities		51,739		56,055		59,400		64,304		72,885		62,801		61,140
Stockholders’ equity ***		28,545		28,482		28,773		29,526		30,315		31,003		32,290
Other managed and marketed customer funds		59,562		63,423		65,556		66,825		72,601		71,426		68,030
Mutual funds		40,844		43,882		45,698		46,936		51,486		50,915		48,249
Pension funds		11,064		11,258		11,341		11,481		11,960		11,503		11,220
Managed portfolios		7,654		8,283		8,517		8,408		9,155		9,008		8,558
Managed and marketed customer funds		368,086		370,958		376,769		378,575		390,766		383,305		378,484

().- Including all on-balance sheet balances for this item (*).- Capital + reserves + profit + valuation adjustments

Other information
NPL ratio		9.08		9.00		8.92		8.88		8.52		8.15		7.89
NPL coverage		58.0		58.4		58.1		57.2		58.6		58.9		60.4
Cost of credit		1.20		1.14		1.07		1.01		0.95		0.86		0.77

LOGO

Continental Europe

Constant EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		6,050			5,551			499			9.0
Net fees		2,576			2,648			(73	)		(2.7	)
Gains (losses) on financial transactions		815			895			(80	)		(8.9	)
Other operating income *		439			176			263			149.0
Gross income		9,880			9,270			609			6.6
Operating expenses		(5,037	)		(4,842	)		(195	)		4.0
General administrative expenses		(4,683	)		(4,487	)		(196	)		4.4
Personnel		(2,410	)		(2,343	)		(67	)		2.8
Other general administrative expenses		(2,273	)		(2,144	)		(129	)		6.0
Depreciation and amortisation		(354	)		(354	)		0			(0.1	)
Net operating income		4,843			4,429			414			9.3
Net loan-loss provisions		(1,643	)		(2,294	)		651			(28.4	)
Other income		(462	)		(600	)		138			(22.9	)
Profit before taxes		2,737			1,534			1,203			78.4
Tax on profit		(710	)		(363	)		(348	)		95.9
Profit from continuing operations		2,027			1,172			855			73.0
Net profit from discontinued operations		—			(7	)		7			(100.0	)
Consolidated profit		2,027			1,165			862			74.0
Minority interests		202			116			86			74.5
Attributable profit to the Group		1,825			1,050			776			73.9

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


					Variation
	30.09.15		30.09.14		Amount			%
Balance sheet
Customer loans **		278,723		264,750		13,973			5.3
Trading portfolio (w/o loans)		60,318		63,587		(3,269	)		(5.1	)
Available-for-sale financial assets		59,142		51,814		7,329			14.1
Due from credit institutions **		87,379		64,585		22,794			35.3
Intangible assets and property and equipment		11,172		8,462		2,710			32.0
Other assets		32,859		24,134		8,725			36.2
Total assets/liabilities & shareholders’ equity		529,594		477,332		52,262			10.9
Customer deposits **		263,013		259,861		3,152			1.2
Marketable debt securities **		47,267		50,023		(2,756	)		(5.5	)
Subordinated debt **		175		398		(223	)		(56.0	)
Insurance liabilities		643		1,670		(1,027	)		(61.5	)
Due to credit institutions **		125,066		77,216		47,851			62.0
Other liabilities		61,140		59,374		1,766			3.0
Stockholders’ equity ***		32,290		28,791		3,499			12.2
Other managed and marketed customer funds		68,030		65,672		2,357			3.6
Mutual funds		48,249		45,646		2,603			5.7
Pension funds		11,220		11,341		(120	)		(1.1	)
Managed portfolios		8,558		8,686		(128	)		(1.5	)
Managed and marketed customer funds		378,484		375,954		2,531			0.7

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

LOGO

Continental Europe

Constant EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		1,813			1,882			1,855			1,973			2,058			1,997			1,995
Net fees		893			902			853			868			843			875			857
Gains (losses) on financial transactions		324			232			339			326			405			90			321
Other operating income *		5			137			34			91			106			243			90
Gross income		3,036			3,153			3,082			3,259			3,411			3,206			3,262
Operating expenses		(1,639	)		(1,615	)		(1,588	)		(1,617	)		(1,671	)		(1,673	)		(1,693	)
General administrative expenses		(1,508	)		(1,503	)		(1,476	)		(1,499	)		(1,562	)		(1,552	)		(1,569	)
Personnel		(793	)		(780	)		(770	)		(781	)		(800	)		(818	)		(792	)
Other general administrative expenses		(715	)		(723	)		(707	)		(718	)		(761	)		(734	)		(777	)
Depreciation and amortisation		(131	)		(112	)		(111	)		(119	)		(109	)		(121	)		(124	)
Net operating income		1,397			1,538			1,494			1,641			1,741			1,532			1,570
Net loan-loss provisions		(790	)		(769	)		(736	)		(582	)		(637	)		(510	)		(496	)
Other income		(197	)		(215	)		(188	)		(94	)		(139	)		(186	)		(137	)
Profit before taxes		410			554			571			965			964			837			936
Tax on profit		(89	)		(135	)		(139	)		(278	)		(252	)		(215	)		(243	)
Profit from continuing operations		321			419			431			687			713			622			693
Net profit from discontinued operations		(0	)		(0	)		(7	)		(19	)		0			0			(0	)
Consolidated profit		321			419			425			668			713			622			693
Minority interests		35			37			44			59			72			65			65
Attributable profit to the Group		286			382			381			609			641			557			628

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


	31.03.14		30.06.14		30.09.14		31.12.14		31.03.15		30.06.15		30.09.15
Balance sheet
Customer loans **		266,033		267,831		264,750		268,740		278,040		279,505		278,723
Trading portfolio (w/o loans)		55,847		59,098		63,587		65,873		76,147		62,278		60,318
Available-for-sale financial assets		44,920		45,203		51,814		56,916		60,377		60,959		59,142
Due from credit institutions **		64,426		58,182		64,585		66,781		79,116		64,717		87,379
Intangible assets and property and equipment		8,929		8,321		8,462		11,852		11,197		11,151		11,172
Other assets		24,903		25,265		24,134		26,790		27,712		27,891		32,859
Total assets/liabilities & shareholders’ equity		465,058		463,898		477,332		496,952		532,589		506,501		529,594
Customer deposits **		258,737		255,542		259,861		257,054		267,029		263,410		263,013
Marketable debt securities **		48,793		50,897		50,023		54,289		49,253		47,462		47,267
Subordinated debt **		401		402		398		412		427		170		175
Insurance liabilities		1,547		1,601		1,670		713		669		647		643
Due to credit institutions **		75,053		70,829		77,216		90,536		112,485		101,224		125,066
Other liabilities		51,796		55,990		59,374		64,320		72,703		62,727		61,140
Stockholders’ equity ***		28,731		28,638		28,791		29,629		30,023		30,862		32,290
Other managed and marketed customer funds		59,759		63,631		65,672		66,979		72,379		71,374		68,030
Mutual funds		40,793		43,818		45,646		46,963		51,340		50,867		48,249
Pension funds		11,064		11,258		11,341		11,481		11,960		11,503		11,220
Managed portfolios		7,901		8,556		8,686		8,535		9,079		9,004		8,558
Managed and marketed customer funds		367,689		370,472		375,954		378,733		389,087		382,415		378,484

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

LOGO

Spain

EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		2,650			2,699			(49	)		(1.8	)
Net fees		1,269			1,348			(79	)		(5.9	)
Gains (losses) on financial transactions		579			797			(218	)		(27.3	)
Other operating income *		343			102			242			237.6
Gross income		4,842			4,946			(104	)		(2.1	)
Operating expenses		(2,574	)		(2,633	)		59			(2.3	)
General administrative expenses		(2,419	)		(2,499	)		79			(3.2	)
Personnel		(1,255	)		(1,335	)		80			(6.0	)
Other general administrative expenses		(1,165	)		(1,164	)		(1	)		0.1
Depreciation and amortisation		(154	)		(135	)		(20	)		14.7
Net operating income		2,268			2,313			(45	)		(1.9	)
Net loan-loss provisions		(835	)		(1,425	)		590			(41.4	)
Other income		(174	)		(123	)		(51	)		41.9
Profit before taxes		1,259			765			493			64.5
Tax on profit		(359	)		(225	)		(134	)		59.4
Profit from continuing operations		900			540			360			66.6
Net profit from discontinued operations		—			—			—			—
Consolidated profit		900			540			360			66.6
Minority interests		16			2			14			599.9
Attributable profit to the Group		883			538			345			64.2

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


					Variation
	30.09.15		30.09.14		Amount			%
Balance sheet
Customer loans **		156,121		156,390		(269	)		(0.2	)
Trading portfolio (w/o loans)		57,331		60,300		(2,969	)		(4.9	)
Available-for-sale financial assets		44,340		36,684		7,656			20.9
Due from credit institutions **		65,526		45,722		19,804			43.3
Intangible assets and property and equipment		2,886		3,542		(656	)		(18.5	)
Other assets		12,808		7,213		5,595			77.6
Total assets/liabilities & shareholders’ equity		339,011		309,851		29,160			9.4
Customer deposits **		181,636		182,273		(637	)		(0.3	)
Marketable debt securities **		23,916		31,676		(7,760	)		(24.5	)
Subordinated debt **		2		1		1			120.2
Insurance liabilities		533		504		29			5.7
Due to credit institutions **		70,171		32,654		37,516			114.9
Other liabilities		50,117		51,766		(1,648	)		(3.2	)
Stockholders’ equity ***		12,637		10,976		1,661			15.1
Other managed and marketed customer funds		59,544		57,278		2,265			4.0
Mutual funds		43,145		40,555		2,590			6.4
Pension funds		10,308		10,486		(177	)		(1.7	)
Managed portfolios		6,090		6,238		(148	)		(2.4	)
Managed and marketed customer funds		265,097		271,228		(6,132	)		(2.3	)

(**).- Including all on-balance sheet balances for this item
(***).- Capital + reserves + profit + valuation adjustments
Ratios (%) and other data
ROE		10.06		6.48		3.58 p.
Efficiency ratio (with amortisations)		53.2		53.2		(0.1 p.	)
NPL ratio		6.61		7.57		(0.96 p.	)
NPL coverage		47.8		45.5		2.3 p.
Number of employees		24,231		25,135		(904	)		(3.6	)
Number of branches		3,487		3,611		(124	)		(3.4	)

LOGO

Spain

EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		884			906			909			928			957			856			837
Net fees		455			469			424			445			414			440			415
Gains (losses) on financial transactions		293			192			312			237			302			35			242
Other operating income *		(13	)		99			16			80			77			190			77
Gross income		1,620			1,665			1,661			1,690			1,749			1,522			1,570
Operating expenses		(897	)		(877	)		(859	)		(863	)		(855	)		(856	)		(863	)
General administrative expenses		(848	)		(835	)		(816	)		(820	)		(810	)		(803	)		(806	)
Personnel		(456	)		(445	)		(433	)		(426	)		(419	)		(420	)		(415	)
Other general administrative expenses		(391	)		(389	)		(383	)		(395	)		(391	)		(383	)		(391	)
Depreciation and amortisation		(50	)		(42	)		(43	)		(43	)		(45	)		(53	)		(57	)
Net operating income		722			788			802			827			894			666			708
Net loan-loss provisions		(507	)		(488	)		(429	)		(320	)		(366	)		(264	)		(205	)
Other income		(41	)		(63	)		(18	)		(89	)		(44	)		(71	)		(58	)
Profit before taxes		174			237			354			417			483			331			444
Tax on profit		(52	)		(71	)		(102	)		(124	)		(139	)		(93	)		(127	)
Profit from continuing operations		122			166			252			293			345			238			317
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		122			166			252			293			345			238			317
Minority interests		2			(0	)		1			4			5			6			6
Attributable profit to the Group		120			166			252			289			340			232			311
(*).- Including dividends, income from equity-accounted method and other operating income/expenses
	31.03.14			30.06.14			30.09.14			31.12.14			31.03.15			30.06.15			30.09.15
Balance sheet
Customer loans **		157,458			159,264			156,390			157,047			157,709			158,383			156,121
Trading portfolio (w/o loans)		51,605			56,119			60,300			62,470			72,674			58,976			57,331
Available-for-sale financial assets		31,907			32,660			36,684			42,337			46,297			46,643			44,340
Due from credit institutions **		45,507			38,543			45,722			48,838			60,193			45,297			65,526
Intangible assets and property and equipment		3,856			3,600			3,542			3,423			2,866			2,904			2,886
Other assets		9,012			8,627			7,213			9,541			8,063			8,348			12,808
Total assets/liabilities & shareholders’ equity		299,346			298,813			309,851			323,657			347,801			320,551			339,011
Customer deposits **		183,196			181,065			182,273			178,446			189,734			184,294			181,636
Marketable debt securities **		35,521			33,782			31,676			35,700			27,647			26,752			23,916
Subordinated debt **		8			8			1			6			0			1			2
Insurance liabilities		551			526			504			539			566			551			533
Due to credit institutions **		25,267			23,637			32,654			42,585			56,589			45,009			70,171
Other liabilities		43,608			48,625			51,766			54,911			62,091			52,112			50,117
Stockholders’ equity ***		11,196			11,170			10,976			11,470			11,174			11,832			12,637
Other managed and marketed customer funds		51,969			55,383			57,278			58,554			63,173			62,224			59,544
Mutual funds		36,018			38,827			40,555			42,041			45,936			45,471			43,145
Pension funds		10,197			10,388			10,486			10,564			10,992			10,587			10,308
Managed portfolios		5,754			6,167			6,238			5,949			6,244			6,167			6,090
Managed and marketed customer funds		270,693			270,238			271,228			272,706			280,554			273,271			265,097
(**).- Including all on-balance sheet balances for this item
(***).- Capital + reserves + profit + valuation adjustments
Other information
NPL ratio		7.61			7.59			7.57			7.38			7.25			6.91			6.61
NPL coverage		44.6			44.9			45.5			45.5			46.6			46.8			47.8
Cost of credit		1.37			1.31			1.21			1.06			0.97			0.84			0.71

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Santander Consumer Finance

EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		2,292			1,736			556			32.0
Net fees		659			641			17			2.7
Gains (losses) on financial transactions		(5	)		(1	)		(5	)		591.1
Other operating income *		23			4			19			499.2
Gross income		2,968			2,381			587			24.7
Operating expenses		(1,306	)		(1,089	)		(217	)		20.0
General administrative expenses		(1,180	)		(961	)		(219	)		22.8
Personnel		(554	)		(434	)		(119	)		27.5
Other general administrative expenses		(626	)		(526	)		(100	)		19.0
Depreciation and amortisation		(127	)		(128	)		2			(1.5	)
Net operating income		1,662			1,292			370			28.7
Net loan-loss provisions		(440	)		(401	)		(39	)		9.7
Other income		(102	)		(102	)		(0	)		0.4
Profit before taxes		1,119			788			331			41.9
Tax on profit		(314	)		(204	)		(110	)		54.2
Profit from continuing operations		805			585			220			37.7
Net profit from discontinued operations		—			(7	)		7			(100.0	)
Consolidated profit		805			578			227			39.3
Minority interests		102			27			75			274.0
Attributable profit to the Group		702			550			152			27.6
(*).- Including dividends, income from equity-accounted method and other operating income/expenses
							Variation
	30.09.15			30.09.14			Amount			%
Balance sheet
Customer loans **		70,067			58,596			11,471			19.6
Trading portfolio (w/o loans)		90			41			49			120.1
Available-for-sale financial assets		2,876			603			2,273			376.8
Due from credit institutions **		3,410			5,544			(2,133	)		(38.5	)
Intangible assets and property and equipment		749			783			(34	)		(4.4	)
Other assets		4,581			3,355			1,226			36.6
Total assets/liabilities & shareholders’ equity		81,774			68,921			12,852			18.6
Customer deposits **		31,789			30,571			1,217			4.0
Marketable debt securities **		20,384			14,803			5,581			37.7
Subordinated debt **		73			65			8			12.7
Insurance liabilities		—			—			—			—
Due to credit institutions **		16,264			13,237			3,027			22.9
Other liabilities		4,934			2,873			2,061			71.7
Stockholders’ equity ***		8,329			7,372			957			13.0
Other managed and marketed customer funds		7			7			0			3.0
Mutual funds		2			2			(0	)		(10.9	)
Pension funds		5			5			0			8.4
Managed portfolios		—			—			—			—
Managed and marketed customer funds		52,253			45,446			6,807			15.0
(**).- Including all on-balance sheet balances for this item
(***).- Capital + reserves + profit + valuation adjustments
Ratios (%) and other data
ROE		12.12			10.28			1.84 p.
Efficiency ratio (with amortisations)		44.0			45.7			(1.7 p.	)
NPL ratio		4.15			3.97			0.18 p.
NPL coverage		107.2			106.4			0.8 p.
Number of employees		14,138			12,345			1,793			14.5
Number of branches		592			572			20			3.5

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Santander Consumer Finance

EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		555			589			592			632			729			775			788
Net fees		221			212			208			199			220			216			223
Gains (losses) on financial transactions		0			1			(2	)		3			0			(8	)		3
Other operating income *		(1	)		4			1			8			10			9			4
Gross income		776			805			800			843			959			991			1,018
Operating expenses		(370	)		(361	)		(358	)		(379	)		(422	)		(442	)		(443	)
General administrative expenses		(319	)		(322	)		(320	)		(332	)		(384	)		(398	)		(398	)
Personnel		(145	)		(144	)		(146	)		(154	)		(179	)		(200	)		(174	)
Other general administrative expenses		(174	)		(178	)		(174	)		(178	)		(205	)		(198	)		(224	)
Depreciation and amortisation		(50	)		(40	)		(38	)		(46	)		(38	)		(44	)		(45	)
Net operating income		406			444			442			465			537			549			575
Net loan-loss provisions		(130	)		(123	)		(149	)		(143	)		(168	)		(131	)		(142	)
Other income		(14	)		(17	)		(71	)		65			(22	)		(36	)		(44	)
Profit before taxes		263			304			222			387			348			382			389
Tax on profit		(64	)		(84	)		(56	)		(111	)		(96	)		(110	)		(108	)
Profit from continuing operations		198			220			166			276			251			272			281
Net profit from discontinued operations		(0	)		(0	)		(7	)		(19	)		0			0			(0	)
Consolidated profit		198			220			160			256			251			272			281
Minority interests		6			7			14			11			31			31			40
Attributable profit to the Group		192			213			146			245			220			241			242
(*).- Including dividends, income from equity-accounted method and other operating income/expenses
	31.03.14			30.06.14			30.09.14			31.12.14			31.03.15			30.06.15			30.09.15
Balance sheet
Customer loans **		57,433			58,058			58,596			60,448			68,690			69,546			70,067
Trading portfolio (w/o loans)		878			270			41			87			31			59			90
Available-for-sale financial assets		478			591			603			988			1,122			1,841			2,876
Due from credit institutions **		7,245			6,528			5,544			5,476			5,551			6,136			3,410
Intangible assets and property and equipment		913			795			783			786			779			767			749
Other assets		3,165			3,073			3,355			3,734			4,220			4,001			4,581
Total assets/liabilities & shareholders’ equity		70,112			69,315			68,921			71,520			80,392			82,350			81,774
Customer deposits **		30,611			30,736			30,571			30,847			30,989			31,810			31,789
Marketable debt securities **		11,217			13,503			14,803			15,646			18,915			18,043			20,384
Subordinated debt **		64			65			65			66			69			70			73
Insurance liabilities		—			—			—			—			—			—			—
Due to credit institutions **		17,662			14,861			13,237			14,266			18,285			20,573			16,264
Other liabilities		3,577			2,996			2,873			3,343			4,273			4,051			4,934
Stockholders’ equity ***		6,981			7,154			7,372			7,351			7,861			7,803			8,329
Other managed and marketed customer funds		7			7			7			7			7			7			7
Mutual funds		2			2			2			2			2			2			2
Pension funds		5			5			5			5			5			5			5
Managed portfolios		—			—			—			—			—			—			—
Managed and marketed customer funds		41,899			44,310			45,446			46,566			49,980			49,930			52,253
().- Including all on-balance sheet balances for this item (*).- Capital + reserves + profit + valuation adjustments
Other information
NPL ratio		4.14			4.07			3.97			4.82			4.52			4.25			4.15
NPL coverage		105.1			105.2			106.4			100.1			103.6			104.9			107.2
Cost of credit		0.89			0.87			0.85			0.90			0.93			0.91			0.87

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Poland

EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		579			639			(60	)		(9.4	)
Net fees		313			328			(15	)		(4.5	)
Gains (losses) on financial transactions		90			31			59			187.0
Other operating income *		2			24			(22	)		(90.6	)
Gross income		985			1,023			(38	)		(3.7	)
Operating expenses		(451	)		(441	)		(10	)		2.2
General administrative expenses		(417	)		(406	)		(11	)		2.8
Personnel		(243	)		(231	)		(12	)		5.0
Other general administrative expenses		(174	)		(175	)		0			(0.2	)
Depreciation and amortisation		(34	)		(35	)		2			(4.7	)
Net operating income		534			582			(48	)		(8.2	)
Net loan-loss provisions		(124	)		(129	)		5			(3.9	)
Other income		(0	)		(11	)		11			(96.8	)
Profit before taxes		410			442			(32	)		(7.3	)
Tax on profit		(77	)		(86	)		10			(11.5	)
Profit from continuing operations		333			355			(22	)		(6.2	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		333			355			(22	)		(6.2	)
Minority interests		90			94			(4	)		(4.1	)
Attributable profit to the Group		243			262			(18	)		(7.0	)

(*).- Including dividends, income from equity-accounted method and other operating income/expenses
							Variation
	30.09.15			30.09.14			Amount			%
Balance sheet
Customer loans **		18,466			17,217			1,250			7.3
Trading portfolio (w/o loans)		1,032			795			237			29.8
Available-for-sale financial assets		5,500			5,920			(420	)		(7.1	)
Due from credit institutions **		1,166			952			214			22.5
Intangible assets and property and equipment		229			224			5			2.1
Other assets		1,773			2,257			(484	)		(21.4	)
Total assets/liabilities & shareholders’ equity		28,166			27,364			801			2.9
Customer deposits **		20,404			20,224			180			0.9
Marketable debt securities **		401			236			165			70.2
Subordinated debt **		100			337			(237	)		(70.4	)
Insurance liabilities		—			79			(79	)		(100.0	)
Due to credit institutions **		1,396			1,074			322			30.0
Other liabilities		3,476			3,101			376			12.1
Stockholders’ equity ***		2,388			2,313			74			3.2
Other managed and marketed customer funds		3,607			3,782			(175	)		(4.6	)
Mutual funds		3,500			3,692			(191	)		(5.2	)
Pension funds		—			—			—			—
Managed portfolios		107			90			17			18.6
Managed and marketed customer funds		24,512			24,579			(67	)		(0.3	)
().- Including all on-balance sheet balances for this item (*).- Capital + reserves + profit + valuation adjustments
Ratios (%) and other data
ROE		13.62			15.94			(2.32 p.	)
Efficiency ratio (with amortisations)		45.8			43.1			2.6 p.
NPL ratio		7.14			7.43			(0.29 p.	)
NPL coverage		63.1			65.8			(2.7 p.	)
Number of employees		11,626			11,933			(307	)		(2.6	)
Number of branches		752			803			(51	)		(6.4	)

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Poland

EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		208			217			215			194			191			192			196
Net fees		109			111			107			107			100			110			103
Gains (losses) on financial transactions		11			7			13			48			54			19			18
Other operating income *		6			18			0			4			(4	)		16			(9	)
Gross income		334			353			335			353			340			336			309
Operating expenses		(148	)		(149	)		(144	)		(144	)		(151	)		(153	)		(146	)
General administrative expenses		(136	)		(137	)		(133	)		(132	)		(139	)		(142	)		(136	)
Personnel		(77	)		(77	)		(77	)		(79	)		(81	)		(82	)		(79	)
Other general administrative expenses		(59	)		(60	)		(56	)		(52	)		(58	)		(60	)		(57	)
Depreciation and amortisation		(12	)		(12	)		(12	)		(12	)		(12	)		(11	)		(11	)
Net operating income		187			204			191			209			190			182			162
Net loan-loss provisions		(43	)		(42	)		(44	)		(57	)		(39	)		(46	)		(39	)
Other income		(3	)		(16	)		8			22			(1	)		(2	)		3
Profit before taxes		141			146			155			174			150			135			125
Tax on profit		(26	)		(27	)		(33	)		(48	)		(27	)		(23	)		(26	)
Profit from continuing operations		115			119			122			126			122			112			99
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		115			119			122			126			122			112			99
Minority interests		31			32			31			33			33			30			26
Attributable profit to the Group		84			87			91			93			89			82			73
(*).- Including dividends, income from equity-accounted method and other operating income/expenses
	31.03.14			30.06.14			30.09.14			31.12.14			31.03.15			30.06.15			30.09.15
Balance sheet
Customer loans **		16,728			17,064			17,217			16,976			18,303			18,329			18,466
Trading portfolio (w/o loans)		809			799			795			1,166			1,258			1,132			1,032
Available-for-sale financial assets		5,127			4,214			5,920			5,816			5,355			5,647			5,500
Due from credit institutions **		1,256			607			952			1,061			1,223			1,245			1,166
Intangible assets and property and equipment		223			214			224			236			241			235			229
Other assets		2,286			2,570			2,257			2,540			2,168			1,660			1,773
Total assets/liabilities & shareholders’ equity		26,428			25,467			27,364			27,794			28,548			28,248			28,166
Customer deposits **		18,803			18,325			20,224			20,144			20,481			20,181			20,404
Marketable debt securities **		121			120			236			230			240			350			401
Subordinated debt **		335			336			337			337			372			100			100
Insurance liabilities		81			79			79			77			—			—			—
Due to credit institutions **		2,218			1,563			1,074			1,264			1,268			1,659			1,396
Other liabilities		2,674			2,872			3,101			3,467			3,786			3,591			3,476
Stockholders’ equity ***		2,197			2,171			2,313			2,274			2,402			2,367			2,388
Other managed and marketed customer funds		3,555			3,647			3,782			3,515			3,960			3,928			3,607
Mutual funds		3,455			3,556			3,692			3,430			3,813			3,766			3,500
Pension funds		—			—			—			—			—			—			—
Managed portfolios		101			91			90			85			147			162			107
Managed and marketed customer funds		22,815			22,429			24,579			24,226			25,053			24,559			24,512
().- Including all on-balance sheet balances for this item (*).- Capital + reserves + profit + valuation adjustments
Other information
NPL ratio		7.35			7.42			7.43			7.42			7.33			7.07			7.14
NPL coverage		64.6			65.3			65.8			60.3			61.6			63.5			63.1
Cost of credit		0.98			0.92			0.95			1.04			1.00			1.00			0.96

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Poland

Constant EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		579			643			(63	)		(9.8	)
Net fees		313			329			(16	)		(4.9	)
Gains (losses) on financial transactions		90			31			58			185.7
Other operating income *		2			24			(22	)		(90.7	)
Gross income		985			1,027			(43	)		(4.2	)
Operating expenses		(451	)		(443	)		(8	)		1.7
General administrative expenses		(417	)		(408	)		(9	)		2.3
Personnel		(243	)		(232	)		(11	)		4.5
Other general administrative expenses		(174	)		(176	)		1			(0.7	)
Depreciation and amortisation		(34	)		(36	)		2			(5.1	)
Net operating income		534			584			(50	)		(8.6	)
Net loan-loss provisions		(124	)		(130	)		6			(4.4	)
Other income		(0	)		(11	)		11			(96.8	)
Profit before taxes		410			444			(34	)		(7.7	)
Tax on profit		(77	)		(87	)		10			(11.9	)
Profit from continuing operations		333			357			(24	)		(6.7	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		333			357			(24	)		(6.7	)
Minority interests		90			94			(4	)		(4.6	)
Attributable profit to the Group		243			263			(20	)		(7.4	)

(*).- Including dividends, income from equity-accounted method and other operating income/expenses
							Variation
	30.09.15			30.09.14			Amount			%
Balance sheet
Customer loans **		18,466			16,944			1,522			9.0
Trading portfolio (w/o loans)		1,032			782			250			31.9
Available-for-sale financial assets		5,500			5,826			(327	)		(5.6	)
Due from credit institutions **		1,166			937			229			24.4
Intangible assets and property and equipment		229			221			8			3.7
Other assets		1,773			2,221			(448	)		(20.2	)
Total assets/liabilities & shareholders’ equity		28,166			26,931			1,235			4.6
Customer deposits **		20,404			19,904			500			2.5
Marketable debt securities **		401			232			169			72.9
Subordinated debt **		100			332			(232	)		(69.9	)
Insurance liabilities		—			78			(78	)		(100.0	)
Due to credit institutions **		1,396			1,057			339			32.1
Other liabilities		3,476			3,052			425			13.9
Stockholders’ equity ***		2,388			2,277			111			4.9
Other managed and marketed customer funds		3,607			3,722			(115	)		(3.1	)
Mutual funds		3,500			3,633			(133	)		(3.7	)
Pension funds		—			—			—			—
Managed portfolios		107			89			18			20.5
Managed and marketed customer funds		24,512			24,190			322			1.3

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

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Poland

Constant EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		209			218			216			197			193			189			198
Net fees		110			111			108			109			101			108			104
Gains (losses) on financial transactions		11			7			13			48			54			18			18
Other operating income *		6			18			0			4			(5	)		16			(9	)
Gross income		337			354			337			358			343			330			311
Operating expenses		(149	)		(149	)		(145	)		(146	)		(152	)		(151	)		(148	)
General administrative expenses		(137	)		(138	)		(133	)		(133	)		(141	)		(140	)		(137	)
Personnel		(78	)		(77	)		(77	)		(80	)		(82	)		(81	)		(80	)
Other general administrative expenses		(59	)		(61	)		(56	)		(53	)		(58	)		(59	)		(57	)
Depreciation and amortisation		(12	)		(12	)		(12	)		(13	)		(12	)		(11	)		(11	)
Net operating income		188			205			192			212			191			179			164
Net loan-loss provisions		(43	)		(42	)		(44	)		(57	)		(39	)		(45	)		(40	)
Other income		(3	)		(16	)		8			22			(1	)		(2	)		3
Profit before taxes		142			147			155			176			151			132			127
Tax on profit		(26	)		(27	)		(33	)		(48	)		(28	)		(22	)		(26	)
Profit from continuing operations		115			119			122			128			123			110			100
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		115			119			122			128			123			110			100
Minority interests		31			32			31			34			34			30			27
Attributable profit to the Group		85			87			91			95			90			80			74
(*).- Including dividends, income from equity-accounted method and other operating income/expenses
	31.03.14			30.06.14			30.09.14			31.12.14			31.03.15			30.06.15			30.09.15
Balance sheet
Customer loans **		16,441			16,710			16,944			17,089			17,616			18,097			18,466
Trading portfolio (w/o loans)		795			782			782			1,174			1,211			1,118			1,032
Available-for-sale financial assets		5,039			4,127			5,826			5,855			5,154			5,576			5,500
Due from credit institutions **		1,234			594			937			1,068			1,177			1,229			1,166
Intangible assets and property and equipment		219			209			221			237			232			232			229
Other assets		2,247			2,516			2,221			2,557			2,087			1,639			1,773
Total assets/liabilities & shareholders’ equity		25,975			24,939			26,931			27,980			27,476			27,891			28,166
Customer deposits **		18,480			17,945			19,904			20,279			19,711			19,926			20,404
Marketable debt securities **		119			118			232			232			231			346			401
Subordinated debt **		329			329			332			339			358			99			100
Insurance liabilities		79			77			78			78			—			—			—
Due to credit institutions **		2,180			1,531			1,057			1,273			1,220			1,638			1,396
Other liabilities		2,628			2,813			3,052			3,490			3,644			3,545			3,476
Stockholders’ equity ***		2,159			2,126			2,277			2,289			2,312			2,337			2,388
Other managed and marketed customer funds		3,494			3,571			3,722			3,538			3,811			3,879			3,607
Mutual funds		3,395			3,482			3,633			3,452			3,670			3,718			3,500
Pension funds		—			—			—			—			—			—			—
Managed portfolios		99			89			89			86			142			160			107
Managed and marketed customer funds		22,423			21,964			24,190			24,388			24,112			24,249			24,512

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

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Poland

PLN million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		2,407			2,670			(263	)		(9.8	)
Net fees		1,301			1,368			(67	)		(4.9	)
Gains (losses) on financial transactions		374			131			243			185.7
Other operating income *		9			100			(91	)		(90.7	)
Gross income		4,091			4,269			(178	)		(4.2	)
Operating expenses		(1,872	)		(1,841	)		(31	)		1.7
General administrative expenses		(1,732	)		(1,694	)		(39	)		2.3
Personnel		(1,008	)		(964	)		(44	)		4.5
Other general administrative expenses		(725	)		(730	)		5			(0.7	)
Depreciation and amortisation		(140	)		(148	)		8			(5.1	)
Net operating income		2,218			2,428			(210	)		(8.6	)
Net loan-loss provisions		(515	)		(538	)		23			(4.4	)
Other income		(1	)		(46	)		44			(96.8	)
Profit before taxes		1,702			1,844			(142	)		(7.7	)
Tax on profit		(318	)		(361	)		43			(11.9	)
Profit from continuing operations		1,384			1,483			(99	)		(6.7	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		1,384			1,483			(99	)		(6.7	)
Minority interests		373			391			(18	)		(4.6	)
Attributable profit to the Group		1,011			1,092			(81	)		(7.4	)

(*).- Including dividends, income from equity-accounted method and other operating income/expenses
							Variation
	30.09.15			30.09.14			Amount			%
Balance sheet
Customer loans **		78,386			71,924			6,462			9.0
Trading portfolio (w/o loans)		4,379			3,319			1,059			31.9
Available-for-sale financial assets		23,344			24,731			(1,387	)		(5.6	)
Due from credit institutions **		4,948			3,976			972			24.4
Intangible assets and property and equipment		973			938			35			3.7
Other assets		7,528			9,429			(1,901	)		(20.2	)
Total assets/liabilities & shareholders’ equity		119,557			114,317			5,240			4.6
Customer deposits **		86,613			84,489			2,124			2.5
Marketable debt securities **		1,701			984			717			72.9
Subordinated debt **		424			1,409			(985	)		(69.9	)
Insurance liabilities		—			330			(330	)		(100.0	)
Due to credit institutions **		5,928			4,488			1,440			32.1
Other liabilities		14,756			12,953			1,802			13.9
Stockholders’ equity ***		10,136			9,664			472			4.9
Other managed and marketed customer funds		15,312			15,799			(487	)		(3.1	)
Mutual funds		14,859			15,423			(564	)		(3.7	)
Pension funds		—			—			—			—
Managed portfolios		454			376			77			20.5
Managed and marketed customer funds		104,050			102,681			1,369			1.3
().- Including all on-balance sheet balances for this item (*).- Capital + reserves + profit + valuation adjustments

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Poland

PLN million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		868			906			896			820			800			784			822
Net fees		458			462			448			451			420			448			433
Gains (losses) on financial transactions		47			28			55			200			225			74			75
Other operating income *		25			75			1			15			(19	)		65			(37	)
Gross income		1,399			1,471			1,400			1,487			1,427			1,371			1,293
Operating expenses		(618	)		(621	)		(603	)		(606	)		(632	)		(626	)		(614	)
General administrative expenses		(569	)		(571	)		(554	)		(554	)		(584	)		(580	)		(569	)
Personnel		(323	)		(320	)		(321	)		(334	)		(341	)		(335	)		(332	)
Other general administrative expenses		(246	)		(252	)		(232	)		(220	)		(243	)		(245	)		(237	)
Depreciation and amortisation		(49	)		(49	)		(49	)		(52	)		(48	)		(46	)		(45	)
Net operating income		781			850			797			880			794			745			679
Net loan-loss provisions		(180	)		(174	)		(184	)		(238	)		(164	)		(187	)		(164	)
Other income		(12	)		(66	)		33			90			(3	)		(9	)		11
Profit before taxes		589			609			646			732			627			549			526
Tax on profit		(110	)		(113	)		(138	)		(200	)		(115	)		(93	)		(110	)
Profit from continuing operations		479			496			508			533			512			456			416
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		479			496			508			533			512			456			416
Minority interests		128			134			129			140			140			123			110
Attributable profit to the Group		352			362			379			393			372			333			306
(*).- Including dividends, income from equity-accounted method and other operating income/expenses
	31.03.14			30.06.14			30.09.14			31.12.14			31.03.15			30.06.15			30.09.15
Balance sheet
Customer loans **		69,787			70,930			71,924			72,541			74,776			76,820			78,386
Trading portfolio (w/o loans)		3,375			3,319			3,319			4,982			5,141			4,746			4,379
Available-for-sale financial assets		21,388			17,517			24,731			24,851			21,876			23,668			23,344
Due from credit institutions **		5,238			2,523			3,976			4,532			4,997			5,217			4,948
Intangible assets and property and equipment		931			889			938			1,008			984			983			973
Other assets		9,538			10,682			9,429			10,856			8,859			6,956			7,528
Total assets/liabilities & shareholders’ equity		110,257			105,860			114,317			118,769			116,632			118,390			119,557
Customer deposits **		78,446			76,173			84,489			86,080			83,671			84,580			86,613
Marketable debt securities **		505			501			984			984			982			1,467			1,701
Subordinated debt **		1,397			1,398			1,409			1,440			1,519			420			424
Insurance liabilities		337			328			330			331			—			—			—
Due to credit institutions **		9,252			6,499			4,488			5,402			5,181			6,953			5,928
Other liabilities		11,154			11,940			12,953			14,816			15,466			15,048			14,756
Stockholders’ equity ***		9,166			9,023			9,664			9,717			9,812			9,921			10,136
Other managed and marketed customer funds		14,833			15,160			15,799			15,018			16,179			16,464			15,312
Mutual funds		14,413			14,782			15,423			14,655			15,578			15,784			14,859
Pension funds		—			—			—			—			—			—			—
Managed portfolios		420			378			376			363			601			680			454
Managed and marketed customer funds		95,181			93,232			102,681			103,522			102,352			102,931			104,050

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

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Portugal

EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		417			403			14			3.5
Net fees		202			209			(7	)		(3.4	)
Gains (losses) on financial transactions		41			53			(12	)		(22.7	)
Other operating income *		38			31			7			24.0
Gross income		698			695			2			0.3
Operating expenses		(369	)		(370	)		1			(0.2	)
General administrative expenses		(342	)		(332	)		(11	)		3.2
Personnel		(216	)		(214	)		(2	)		1.0
Other general administrative expenses		(127	)		(118	)		(8	)		7.1
Depreciation and amortisation		(27	)		(38	)		11			(29.8	)
Net operating income		328			325			3			0.9
Net loan-loss provisions		(67	)		(106	)		40			(37.3	)
Other income		(21	)		(79	)		57			(73.0	)
Profit before taxes		240			140			100			71.3
Tax on profit		(59	)		(32	)		(27	)		85.9
Profit from continuing operations		181			108			73			67.0
Net profit from discontinued operations		—			—			—			—
Consolidated profit		181			108			73			67.0
Minority interests		0			(4	)		4			—
Attributable profit to the Group		181			113			68			60.5

(*).- Including dividends, income from equity-accounted method and other operating income/expenses
							Variation
	30.09.15			30.09.14			Amount			%
Balance sheet
Customer loans **		23,029			23,333			(304	)		(1.3	)
Trading portfolio (w/o loans)		1,801			1,998			(196	)		(9.8	)
Available-for-sale financial assets		5,736			8,060			(2,325	)		(28.8	)
Due from credit institutions **		2,097			2,466			(369	)		(15.0	)
Intangible assets and property and equipment		696			749			(53	)		(7.0	)
Other assets		5,999			6,708			(708	)		(10.6	)
Total assets/liabilities & shareholders’ equity		39,358			43,313			(3,954	)		(9.1	)
Customer deposits **		24,091			24,131			(39	)		(0.2	)
Marketable debt securities **		2,566			3,793			(1,228	)		(32.4	)
Subordinated debt **		0			0			(0	)		(34.2	)
Insurance liabilities		22			80			(58	)		(72.5	)
Due to credit institutions **		9,384			12,074			(2,690	)		(22.3	)
Other liabilities		920			769			151			19.6
Stockholders’ equity ***		2,376			2,466			(90	)		(3.7	)
Other managed and marketed customer funds		2,801			2,347			454			19.3
Mutual funds		1,489			1,246			243			19.5
Pension funds		906			849			57			6.7
Managed portfolios		406			252			154			61.0
Managed and marketed customer funds		29,458			30,271			(814	)		(2.7	)

().- Including all on-balance sheet balances for this item (*).-Capital + reserves + profit + valuation adjustments
Ratios (%) and other data
ROE		10.02			6.54			3.48 p.
Efficiency ratio (with amortisations)		52.9			53.2			(0.3 p.	)
NPL ratio		8.86			8.49			0.37 p.
NPL coverage		56.2			53.9			2.3 p.
Number of employees		5,423			5,552			(129	)		(2.3	)
Number of branches		575			620			(45	)		(7.3	)

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Portugal

EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		129			138			136			143			142			141			134
Net fees		73			66			70			71			68			67			66
Gains (losses) on financial transactions		18			22			13			35			15			10			16
Other operating income *		9			11			11			12			13			16			10
Gross income		228			237			230			261			238			234			226
Operating expenses		(124	)		(123	)		(123	)		(128	)		(123	)		(122	)		(124	)
General administrative expenses		(109	)		(111	)		(111	)		(115	)		(114	)		(113	)		(115	)
Personnel		(71	)		(71	)		(71	)		(76	)		(71	)		(72	)		(72	)
Other general administrative expenses		(38	)		(40	)		(40	)		(39	)		(42	)		(41	)		(43	)
Depreciation and amortisation		(14	)		(12	)		(12	)		(12	)		(10	)		(9	)		(9	)
Net operating income		105			114			106			133			115			112			102
Net loan-loss provisions		(34	)		(40	)		(32	)		(17	)		(22	)		(21	)		(24	)
Other income		(30	)		(29	)		(20	)		(20	)		(21	)		(23	)		23
Profit before taxes		40			45			55			96			72			67			101
Tax on profit		(9	)		(9	)		(14	)		(24	)		(17	)		(18	)		(24	)
Profit from continuing operations		32			36			40			72			55			49			77
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		32			36			40			72			55			49			77
Minority interests		(2	)		(2	)		(0	)		0			0			(0	)		0
Attributable profit to the Group		34			38			41			72			55			49			77
(*).- Including dividends, income from equity-accounted method and other operating income/expenses
	31.03.14			30.06.14			30.09.14			31.12.14			31.03.15			30.06.15			30.09.15
Balance sheet
Customer loans **		24,240			24,111			23,333			23,180			23,045			23,097			23,029
Trading portfolio (w/o loans)		1,884			1,880			1,998			2,082			2,160			2,076			1,801
Available-for-sale financial assets		6,711			7,119			8,060			7,011			6,877			5,711			5,736
Due from credit institutions **		2,540			2,491			2,466			2,163			2,173			1,934			2,097
Intangible assets and property and equipment		800			763			749			729			700			693			696
Other assets		5,810			6,276			6,708			6,450			5,857			5,903			5,999
Total assets/liabilities & shareholders’ equity		41,986			42,640			43,313			41,616			40,813			39,415			39,358
Customer deposits **		23,586			23,253			24,131			24,016			23,529			23,796			24,091
Marketable debt securities **		2,248			3,811			3,793			2,855			2,732			2,608			2,566
Subordinated debt **		0			0			0			0			(0	)		0			0
Insurance liabilities		80			80			80			27			30			24			22
Due to credit institutions **		12,916			12,274			12,074			11,543			11,043			9,794			9,384
Other liabilities		857			922			769			787			888			971			920
Stockholders’ equity ***		2,299			2,300			2,466			2,388			2,591			2,221			2,376
Other managed and marketed customer funds		2,227			2,396			2,347			2,501			2,870			2,876			2,801
Mutual funds		1,185			1,311			1,246			1,276			1,530			1,555			1,489
Pension funds		862			864			849			911			962			910			906
Managed portfolios		179			222			252			314			379			411			406
Managed and marketed customer funds		28,061			29,460			30,271			29,372			29,131			29,281			29,458
().- Including all on-balance sheet balances for this item (*).- Capital + reserves + profit + valuation adjustments
Other information
NPL ratio		8.26			8.16			8.49			8.89			8.96			8.80			8.86
NPL coverage		50.6			53.1			53.9			51.8			52.4			54.2			56.2
Cost of credit		0.63			0.55			0.47			0.50			0.45			0.38			0.35

LOGO

Spain’s real estate activity

EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		(24	)		(16	)		(9	)		55.9
Net fees		0			(1	)		1			—
Gains (losses) on financial transactions		121			3			118			—
Other operating income *		13			(1	)		14			—
Gross income		110			(14	)		124			—
Operating expenses		(181	)		(171	)		(10	)		6.0
General administrative expenses		(173	)		(159	)		(13	)		8.3
Personnel		(49	)		(42	)		(7	)		16.6
Other general administrative expenses		(124	)		(118	)		(6	)		5.4
Depreciation and amortisation		(8	)		(11	)		3			(25.9	)
Net operating income		(71	)		(185	)		113			(61.4	)
Net loan-loss provisions		(174	)		(236	)		62			(26.3	)
Other income		(164	)		(286	)		122			(42.7	)
Profit before taxes		(409	)		(706	)		297			(42.1	)
Tax on profit		122			200			(79	)		(39.2	)
Profit from continuing operations		(287	)		(506	)		219			(43.2	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		(287	)		(506	)		219			(43.2	)
Minority interests		(7	)		(4	)		(3	)		76.8
Attributable profit to the Group		(280	)		(502	)		222			(44.2	)

(*).- Including dividends, income from equity-accounted method and other operating income/expenses
							Variation
	30.09.15			30.09.14			Amount			%
Balance sheet
Customer loans **		2,982			4,365			(1,384	)		(31.7	)
Trading portfolio (w/o loans)		4			—			4			—
Available-for-sale financial assets		169			210			(41	)		(19.5	)
Due from credit institutions **		781			49			732			—
Intangible assets and property and equipment		5,692			2,437			3,255			133.6
Other assets		6,535			3,498			3,037			86.8
Total assets/liabilities & shareholders’ equity		16,163			10,560			5,603			53.1
Customer deposits **		153			224			(71	)		(31.7	)
Marketable debt securities **		0			—			0			—
Subordinated debt **		—			—			—			—
Insurance liabilities		—			—			—			—
Due to credit institutions **		10,304			6,362			3,942			62.0
Other liabilities		1,402			303			1,099			362.3
Stockholders’ equity ***		4,304			3,671			633			17.2
Other managed and marketed customer funds		42			156			(114	)		(72.9	)
Mutual funds		39			155			(116	)		(74.9	)
Pension funds		1			1			(0	)		(18.7	)
Managed portfolios		—			—			—			—
Managed and marketed customer funds		195			380			(184	)		(48.5	)

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

LOGO

Spain’s real estate activity

EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		(1	)		(11	)		(4	)		(4	)		(13	)		0			(11	)
Net fees		(0	)		(0	)		0			0			0			1			(1	)
Gains (losses) on financial transactions		(0	)		1			2			5			44			34			43
Other operating income *		0			(1	)		(0	)		(18	)		8			11			(5	)
Gross income		(2	)		(11	)		(1	)		(17	)		39			45			25
Operating expenses		(56	)		(58	)		(57	)		(59	)		(66	)		(57	)		(58	)
General administrative expenses		(52	)		(54	)		(53	)		(56	)		(62	)		(53	)		(57	)
Personnel		(14	)		(14	)		(13	)		(14	)		(18	)		(13	)		(17	)
Other general administrative expenses		(38	)		(40	)		(40	)		(42	)		(44	)		(40	)		(40	)
Depreciation and amortisation		(4	)		(4	)		(4	)		(3	)		(4	)		(3	)		(1	)
Net operating income		(58	)		(69	)		(58	)		(76	)		(27	)		(11	)		(33	)
Net loan-loss provisions		(77	)		(76	)		(83	)		(46	)		(42	)		(49	)		(83	)
Other income		(110	)		(90	)		(87	)		(66	)		(49	)		(54	)		(61	)
Profit before taxes		(244	)		(235	)		(227	)		(188	)		(119	)		(114	)		(176	)
Tax on profit		69			67			64			47			36			34			53
Profit from continuing operations		(175	)		(168	)		(163	)		(141	)		(83	)		(80	)		(124	)
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		(175	)		(168	)		(163	)		(141	)		(83	)		(80	)		(124	)
Minority interests		(2	)		(0	)		(2	)		9			1			(1	)		(8	)
Attributable profit to the Group		(173	)		(168	)		(161	)		(150	)		(85	)		(79	)		(116	)

(*).- Including dividends, income from equity-accounted method and other operating income/expenses
	31.03.14			30.06.14			30.09.14			31.12.14			31.03.15			30.06.15			30.09.15
Balance sheet
Customer loans **		5,250			4,915			4,365			4,181			3,942			3,323			2,982
Trading portfolio (w/o loans)		—			—			—			—			6			4			4
Available-for-sale financial assets		210			210			210			210			167			168			169
Due from credit institutions **		14			20			49			51			59			65			781
Intangible assets and property and equipment		3,131			2,794			2,437			5,950			5,865			5,804			5,692
Other assets		3,428			3,595			3,498			3,655			6,429			6,753			6,535
Total assets/liabilities & shareholders’ equity		12,033			11,534			10,560			14,046			16,467			16,117			16,163
Customer deposits **		238			215			224			137			149			245			153
Marketable debt securities **		—			—			—			—			—			—			0
Subordinated debt **		—			—			—			—			—			—			—
Insurance liabilities		—			—			—			—			—			—			—
Due to credit institutions **		7,385			6,989			6,362			8,266			10,538			9,498			10,304
Other liabilities		329			418			303			1,587			1,624			1,841			1,402
Stockholders’ equity ***		4,081			3,911			3,671			4,056			4,156			4,533			4,304
Other managed and marketed customer funds		145			145			156			140			139			44			42
Mutual funds		144			144			155			140			138			43			39
Pension funds		1			1			1			1			1			1			1
Managed portfolios		—			—			—			—			—			—			—
Managed and marketed customer funds		383			360			380			278			288			288			195

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

LOGO

United Kingdom

EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		3,691			3,113			578			18.6
Net fees		851			754			97			12.9
Gains (losses) on financial transactions		202			206			(4	)		(1.9	)
Other operating income *		37			28			9			31.7
Gross income		4,781			4,101			680			16.6
Operating expenses		(2,511	)		(2,147	)		(363	)		16.9
General administrative expenses		(2,267	)		(1,915	)		(353	)		18.4
Personnel		(1,205	)		(1,149	)		(56	)		4.9
Other general administrative expenses		(1,062	)		(765	)		(297	)		38.8
Depreciation and amortisation		(243	)		(233	)		(11	)		4.5
Net operating income		2,271			1,954			317			16.2
Net loan-loss provisions		(86	)		(296	)		210			(70.8	)
Other income		(236	)		(182	)		(54	)		29.5
Profit before taxes		1,948			1,476			473			32.0
Tax on profit		(426	)		(306	)		(120	)		39.1
Profit from continuing operations		1,523			1,170			353			30.2
Net profit from discontinued operations		—			—			—			—
Consolidated profit		1,523			1,170			353			30.2
Minority interests		27			—			27			—
Attributable profit to the Group		1,496			1,170			326			27.9
(*).- Including dividends, income from equity-accounted method and other operating income/expenses
							Variation
	30.09.15			30.09.14			Amount			%
Balance sheet
Customer loans **		284,003			248,940			35,063			14.1
Trading portfolio (w/o loans)		40,406			35,264			5,143			14.6
Available-for-sale financial assets		12,940			10,736			2,203			20.5
Due from credit institutions **		14,995			16,766			(1,771	)		(10.6	)
Intangible assets and property and equipment		3,043			2,502			540			21.6
Other assets		27,936			40,269			(12,333	)		(30.6	)
Total assets/liabilities & shareholders’ equity		383,323			354,478			28,845			8.1
Customer deposits **		227,212			203,721			23,491			11.5
Marketable debt securities **		72,051			70,402			1,649			2.3
Subordinated debt **		4,098			6,121			(2,023	)		(33.0	)
Insurance liabilities		—			—			—			—
Due to credit institutions **		24,871			25,560			(690	)		(2.7	)
Other liabilities		38,500			33,665			4,835			14.4
Stockholders’ equity ***		16,591			15,009			1,582			10.5
Other managed and marketed customer funds		9,376			9,994			(618	)		(6.2	)
Mutual funds		9,238			9,849			(611	)		(6.2	)
Pension funds		—			—			—			—
Managed portfolios		138			145			(7	)		(4.9	)
Managed and marketed customer funds		312,737			290,238			22,499			7.8
().- Including all on-balance sheet balances for this item (*).- Capital + reserves + profit + valuation adjustments
Ratios (%) and other data
ROE		12.60			11.41			1.19 p.
Efficiency ratio (with amortisations)		52.5			52.4			0.1 p.
NPL ratio		1.51			1.80			(0.29 p.	)
NPL coverage		39.6			43.4			(3.8 p.	)
Number of employees		26,154			25,384			770			3.0
Number of branches		882			942			(60	)		(6.4	)

LOGO

United Kingdom

EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		989			1,035			1,089			1,121			1,194			1,247			1,250
Net fees		247			247			260			273			287			291			273
Gains (losses) on financial transactions		78			69			58			35			60			83			58
Other operating income *		15			4			9			9			10			4			23
Gross income		1,329			1,356			1,417			1,440			1,551			1,626			1,605
Operating expenses		(701	)		(709	)		(737	)		(771	)		(823	)		(843	)		(844	)
General administrative expenses		(614	)		(631	)		(670	)		(680	)		(749	)		(759	)		(760	)
Personnel		(366	)		(373	)		(410	)		(408	)		(396	)		(418	)		(391	)
Other general administrative expenses		(247	)		(258	)		(260	)		(272	)		(352	)		(341	)		(369	)
Depreciation and amortisation		(87	)		(79	)		(67	)		(91	)		(75	)		(85	)		(84	)
Net operating income		628			646			679			669			727			783			761
Net loan-loss provisions		(120	)		(87	)		(89	)		(36	)		(76	)		(18	)		7
Other income		(46	)		(63	)		(73	)		(136	)		(56	)		(51	)		(130	)
Profit before taxes		462			496			518			497			596			714			639
Tax on profit		(91	)		(103	)		(112	)		(110	)		(117	)		(159	)		(149	)
Profit from continuing operations		371			394			406			387			479			555			489
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		371			394			406			387			479			555			489
Minority interests		—			—			—			—			8			9			10
Attributable profit to the Group		371			394			406			387			471			545			480

(*).- Including dividends, income from equity-accounted method and other operating income/expenses
	31.03.14			30.06.14			30.09.14			31.12.14			31.03.15			30.06.15			30.09.15
Balance sheet
Customer loans **		233,937			239,237			248,940			251,191			279,334			287,896			284,003
Trading portfolio (w/o loans)		31,492			31,814			35,264			39,360			42,850			41,349			40,406
Available-for-sale financial assets		8,358			9,675			10,736			11,197			12,937			12,785			12,940
Due from credit institutions **		17,772			14,391			16,766			14,093			19,885			17,654			14,995
Intangible assets and property and equipment		2,510			2,347			2,502			2,700			3,094			3,175			3,043
Other assets		44,325			39,704			40,269			35,695			34,749			26,772			27,936
Total assets/liabilities & shareholders’ equity		338,393			337,169			354,478			354,235			392,848			389,632			383,323
Customer deposits **		194,923			193,431			203,721			202,328			220,684			230,233			227,212
Marketable debt securities **		66,366			65,816			70,402			69,581			78,569			72,622			72,051
Subordinated debt **		5,814			5,931			6,121			5,376			5,787			5,273			4,098
Insurance liabilities		—			—			—			—			—			—			—
Due to credit institutions **		29,013			27,331			25,560			26,720			26,264			26,331			24,871
Other liabilities		28,783			30,561			33,665			34,887			45,703			39,385			38,500
Stockholders’ equity ***		13,493			14,099			15,009			15,342			15,841			15,788			16,591
Other managed and marketed customer funds		9,630			9,885			9,994			9,667			10,469			10,807			9,376
Mutual funds		9,490			9,740			9,849			9,524			10,313			10,645			9,238
Pension funds		—			—			—			—			—			—			—
Managed portfolios		140			145			145			143			156			162			138
Managed and marketed customer funds		276,734			275,063			290,238			286,953			315,509			318,935			312,737
().- Including all on-balance sheet balances for this item (*).- Capital + reserves + profit + valuation adjustments
Other information
NPL ratio		1.88			1.91			1.80			1.79			1.75			1.61			1.51
NPL coverage		42.9			41.1			43.4			41.9			41.2			40.3			39.6
Cost of credit		0.23			0.22			0.19			0.14			0.11			0.08			0.04

LOGO

United Kingdom

Constant EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		3,691			3,477			215			6.2
Net fees		851			842			9			1.0
Gains (losses) on financial transactions		202			230			(28	)		(12.1	)
Other operating income *		37			31			6			17.9
Gross income		4,781			4,580			201			4.4
Operating expenses		(2,511	)		(2,398	)		(113	)		4.7
General administrative expenses		(2,267	)		(2,138	)		(129	)		6.0
Personnel		(1,205	)		(1,283	)		78			(6.1	)
Other general administrative expenses		(1,062	)		(855	)		(207	)		24.3
Depreciation and amortisation		(243	)		(260	)		17			(6.4	)
Net operating income		2,271			2,182			89			4.1
Net loan-loss provisions		(86	)		(330	)		244			(73.9	)
Other income		(236	)		(204	)		(32	)		15.9
Profit before taxes		1,948			1,648			300			18.2
Tax on profit		(426	)		(342	)		(84	)		24.6
Profit from continuing operations		1,523			1,306			217			16.6
Net profit from discontinued operations		—			—			—			—
Consolidated profit		1,523			1,306			217			16.6
Minority interests		27			—			27			—
Attributable profit to the Group		1,496			1,306			189			14.5
(*).- Including dividends, income from equity-accounted method and other operating income/expenses
							Variation
	30.09.15			30.09.14			Amount			%
Balance sheet
Customer loans **		284,003			262,019			21,984			8.4
Trading portfolio (w/o loans)		40,406			37,117			3,290			8.9
Available-for-sale financial assets		12,940			11,300			1,639			14.5
Due from credit institutions **		14,995			17,647			(2,652	)		(15.0	)
Intangible assets and property and equipment		3,043			2,634			409			15.5
Other assets		27,936			42,385			(14,449	)		(34.1	)
Total assets/liabilities & shareholders’ equity		383,323			373,102			10,221			2.7
Customer deposits **		227,212			214,424			12,788			6.0
Marketable debt securities **		72,051			74,100			(2,049	)		(2.8	)
Subordinated debt **		4,098			6,442			(2,344	)		(36.4	)
Insurance liabilities		—			—			—			—
Due to credit institutions **		24,871			26,903			(2,033	)		(7.6	)
Other liabilities		38,500			35,434			3,066			8.7
Stockholders’ equity ***		16,591			15,797			794			5.0
Other managed and marketed customer funds		9,376			10,519			(1,143	)		(10.9	)
Mutual funds		9,238			10,367			(1,128	)		(10.9	)
Pension funds		—			—			—			—
Managed portfolios		138			153			(15	)		(9.6	)
Managed and marketed customer funds		312,737			305,486			7,251			2.4

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

LOGO

United Kingdom

Constant EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		1,127			1,161			1,189			1,218			1,220			1,238			1,233
Net fees		282			277			284			297			293			289			269
Gains (losses) on financial transactions		89			78			63			38			61			83			57
Other operating income *		17			5			10			10			10			4			23
Gross income		1,514			1,520			1,546			1,563			1,585			1,614			1,582
Operating expenses		(798	)		(795	)		(805	)		(838	)		(841	)		(837	)		(832	)
General administrative expenses		(699	)		(707	)		(732	)		(739	)		(765	)		(753	)		(749	)
Personnel		(417	)		(418	)		(448	)		(444	)		(405	)		(415	)		(385	)
Other general administrative expenses		(282	)		(289	)		(284	)		(295	)		(360	)		(338	)		(364	)
Depreciation and amortisation		(99	)		(88	)		(73	)		(99	)		(76	)		(84	)		(83	)
Net operating income		715			725			742			726			744			777			750
Net loan-loss provisions		(137	)		(97	)		(96	)		(38	)		(77	)		(17	)		8
Other income		(53	)		(71	)		(80	)		(149	)		(57	)		(50	)		(129	)
Profit before taxes		526			557			565			539			609			710			629
Tax on profit		(104	)		(115	)		(123	)		(120	)		(120	)		(159	)		(147	)
Profit from continuing operations		422			441			443			419			490			551			482
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		422			441			443			419			490			551			482
Minority interests		—			—			—			—			8			9			10
Attributable profit to the Group		422			441			443			419			482			542			472
(*).- Including dividends, income from equity-accounted method and other operating income/expenses
	31.03.14			30.06.14			30.09.14			31.12.14			31.03.15			30.06.15			30.09.15
Balance sheet
Customer loans **		262,351			259,646			262,019			264,933			275,097			277,332			284,003
Trading portfolio (w/o loans)		35,317			34,528			37,117			41,513			42,200			39,832			40,406
Available-for-sale financial assets		9,373			10,501			11,300			11,809			12,741			12,316			12,940
Due from credit institutions **		19,930			15,618			17,647			14,864			19,583			17,006			14,995
Intangible assets and property and equipment		2,814			2,548			2,634			2,847			3,047			3,059			3,043
Other assets		49,708			43,091			42,385			37,647			34,222			25,789			27,936
Total assets/liabilities & shareholders’ equity		379,495			365,932			373,102			373,613			386,890			375,334			383,323
Customer deposits **		218,599			209,932			214,424			213,397			217,337			221,784			227,212
Marketable debt securities **		74,427			71,431			74,100			73,388			77,377			69,957			72,051
Subordinated debt **		6,520			6,437			6,442			5,671			5,700			5,080			4,098
Insurance liabilities		—			—			—			—			—			—			—
Due to credit institutions **		32,537			29,663			26,903			28,182			25,866			25,364			24,871
Other liabilities		32,279			33,168			35,434			36,795			45,010			37,940			38,500
Stockholders’ equity ***		15,132			15,301			15,797			16,181			15,600			15,208			16,591
Other managed and marketed customer funds		10,800			10,728			10,519			10,196			10,310			10,411			9,376
Mutual funds		10,642			10,571			10,367			10,045			10,156			10,254			9,238
Pension funds		—			—			—			—			—			—			—
Managed portfolios		158			157			153			151			154			156			138
Managed and marketed customer funds		310,347			298,529			305,486			302,651			310,724			307,231			312,737

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

LOGO

United Kingdom

£ million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		2,682			2,526			156			6.2
Net fees		619			612			6			1.0
Gains (losses) on financial transactions		147			167			(20	)		(12.1	)
Other operating income *		27			23			4			17.9
Gross income		3,475			3,328			146			4.4
Operating expenses		(1,824	)		(1,743	)		(82	)		4.7
General administrative expenses		(1,648	)		(1,554	)		(94	)		6.0
Personnel		(876	)		(933	)		57			(6.1	)
Other general administrative expenses		(772	)		(621	)		(151	)		24.3
Depreciation and amortisation		(177	)		(189	)		12			(6.4	)
Net operating income		1,650			1,586			65			4.1
Net loan-loss provisions		(63	)		(240	)		177			(73.9	)
Other income		(171	)		(148	)		(24	)		15.9
Profit before taxes		1,416			1,198			218			18.2
Tax on profit		(309	)		(248	)		(61	)		24.6
Profit from continuing operations		1,107			949			157			16.6
Net profit from discontinued operations		—			—			—			—
Consolidated profit		1,107			949			157			16.6
Minority interests		20			—			20			—
Attributable profit to the Group		1,087			949			138			14.5
(*).- Including dividends, income from equity-accounted method and other operating income/expenses
							Variation
	30.09.15			30.09.14			Amount			%
Balance sheet
Customer loans **		209,736			193,501			16,235			8.4
Trading portfolio (w/o loans)		29,840			27,411			2,430			8.9
Available-for-sale financial assets		9,556			8,345			1,211			14.5
Due from credit institutions **		11,074			13,033			(1,959	)		(15.0	)
Intangible assets and property and equipment		2,247			1,945			302			15.5
Other assets		20,631			31,301			(10,671	)		(34.1	)
Total assets/liabilities & shareholders’ equity		283,084			275,536			7,548			2.7
Customer deposits **		167,796			158,352			9,444			6.0
Marketable debt securities **		53,210			54,723			(1,514	)		(2.8	)
Subordinated debt **		3,026			4,758			(1,731	)		(36.4	)
Insurance liabilities		—			—			—			—
Due to credit institutions **		18,367			19,868			(1,501	)		(7.6	)
Other liabilities		28,432			26,168			2,264			8.7
Stockholders’ equity ***		12,253			11,666			586			5.0
Other managed and marketed customer funds		6,924			7,769			(844	)		(10.9	)
Mutual funds		6,822			7,656			(833	)		(10.9	)
Pension funds		—			—			—			—
Managed portfolios		102			113			(11	)		(9.6	)
Managed and marketed customer funds		230,956			225,602			5,355			2.4

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

LOGO

United Kingdom

£ million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		819			844			864			885			887			900			896
Net fees		205			201			206			216			213			210			196
Gains (losses) on financial transactions		65			56			46			27			45			60			42
Other operating income *		12			3			7			7			7			3			17
Gross income		1,100			1,105			1,124			1,136			1,152			1,173			1,150
Operating expenses		(580	)		(578	)		(585	)		(609	)		(612	)		(608	)		(605	)
General administrative expenses		(508	)		(514	)		(532	)		(537	)		(556	)		(547	)		(545	)
Personnel		(303	)		(304	)		(326	)		(322	)		(294	)		(302	)		(280	)
Other general administrative expenses		(205	)		(210	)		(206	)		(215	)		(262	)		(245	)		(265	)
Depreciation and amortisation		(72	)		(64	)		(53	)		(72	)		(56	)		(61	)		(60	)
Net operating income		520			527			539			527			540			565			545
Net loan-loss provisions		(99	)		(71	)		(70	)		(27	)		(56	)		(12	)		6
Other income		(38	)		(51	)		(58	)		(108	)		(41	)		(36	)		(94	)
Profit before taxes		382			405			411			392			443			516			457
Tax on profit		(75	)		(84	)		(89	)		(87	)		(87	)		(115	)		(107	)
Profit from continuing operations		307			321			322			305			356			401			350
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		307			321			322			305			356			401			350
Minority interests		—			—			—			—			6			7			7
Attributable profit to the Group		307			321			322			305			350			394			343
(*).- Including dividends, income from equity-accounted method and other operating income/expenses
	31.03.14			30.06.14			30.09.14			31.12.14			31.03.15			30.06.15			30.09.15
Balance sheet
Customer loans **		193,746			191,749			193,501			195,653			203,159			204,809			209,736
Trading portfolio (w/o loans)		26,082			25,499			27,411			30,657			31,165			29,416			29,840
Available-for-sale financial assets		6,922			7,755			8,345			8,721			9,409			9,096			9,556
Due from credit institutions **		14,718			11,534			13,033			10,977			14,462			12,559			11,074
Intangible assets and property and equipment		2,078			1,881			1,945			2,103			2,250			2,259			2,247
Other assets		36,710			31,823			31,301			27,803			25,273			19,045			20,631
Total assets/liabilities & shareholders’ equity		280,257			270,241			275,536			275,913			285,718			277,184			283,084
Customer deposits **		161,436			155,035			158,352			157,593			160,503			163,788			167,796
Marketable debt securities **		54,964			52,751			54,723			54,197			57,143			51,663			53,210
Subordinated debt **		4,815			4,754			4,758			4,188			4,209			3,751			3,026
Insurance liabilities		—			—			—			—			—			—			—
Due to credit institutions **		24,028			21,906			19,868			20,812			19,102			18,732			18,367
Other liabilities		23,838			24,495			26,168			27,173			33,240			28,019			28,432
Stockholders’ equity ***		11,175			11,300			11,666			11,950			11,521			11,231			12,253
Other managed and marketed customer funds		7,976			7,923			7,769			7,529			7,614			7,688			6,924
Mutual funds		7,859			7,807			7,656			7,418			7,501			7,573			6,822
Pension funds		—			—			—			—			—			—			—
Managed portfolios		116			116			113			112			113			116			102
Managed and marketed customer funds		229,191			220,463			225,602			223,508			229,470			226,890			230,956

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

LOGO

Latin America

EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		10,489			10,136			353			3.5
Net fees		3,366			3,185			181			5.7
Gains (losses) on financial transactions		457			458			(1	)		(0.3	)
Other operating income *		48			60			(11	)		(18.9	)
Gross income		14,360			13,839			521			3.8
Operating expenses		(5,969	)		(5,791	)		(178	)		3.1
General administrative expenses		(5,448	)		(5,248	)		(200	)		3.8
Personnel		(2,978	)		(2,801	)		(176	)		6.3
Other general administrative expenses		(2,471	)		(2,447	)		(24	)		1.0
Depreciation and amortisation		(521	)		(542	)		22			(4.0	)
Net operating income		8,392			8,048			343			4.3
Net loan-loss provisions		(3,677	)		(3,861	)		184			(4.8	)
Other income		(740	)		(571	)		(169	)		29.7
Ordinary profit before taxes		3,975			3,616			358			9.9
Tax on profit		(998	)		(885	)		(113	)		12.8
Ordinary profit from continuing operations		2,977			2,732			245			9.0
Net profit from discontinued operations		—			—			—			—
Ordinary consolidated profit		2,977			2,732			245			9.0
Minority interests		477			618			(141	)		(22.8	)
Ordinary attributable profit to the Group		2,500			2,114			386			18.3
(*).- Including dividends, income from equity-accounted method and other operating income/expenses
							Variation
	30.09.15			30.09.14			Amount			%
Balance sheet
Customer loans **		129,593			136,111			(6,518	)		(4.8	)
Trading portfolio (w/o loans)		37,178			33,690			3,488			10.4
Available-for-sale financial assets		23,722			22,683			1,039			4.6
Due from credit institutions **		25,987			29,364			(3,376	)		(11.5	)
Intangible assets and property and equipment		3,416			3,839			(423	)		(11.0	)
Other assets		44,473			41,978			2,495			5.9
Total assets/liabilities & shareholders’ equity		264,369			267,665			(3,295	)		(1.2	)
Customer deposits **		118,044			131,120			(13,075	)		(10.0	)
Marketable debt securities **		31,939			32,935			(996	)		(3.0	)
Subordinated debt **		6,088			6,551			(463	)		(7.1	)
Insurance liabilities		1			—			1			—
Due to credit institutions **		41,682			30,672			11,009			35.9
Other liabilities		45,884			46,410			(526	)		(1.1	)
Stockholders’ equity ***		20,731			19,977			754			3.8
Other managed and marketed customer funds		62,030			70,896			(8,865	)		(12.5	)
Mutual funds		57,561			65,962			(8,401	)		(12.7	)
Pension funds		—			0			(0	)		(100.0	)
Managed portfolios		4,470			4,934			(464	)		(9.4	)
Managed and marketed customer funds		218,103			241,501			(23,399	)		(9.7	)

(**).- Including all on-balance sheet balances for this item
(***).- Capital + reserves + profit + valuation adjustments

NOTE: In 9M’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

Ratios (%) and other data
Ordinary ROE		14.85			14.38			0.47 p.
Efficiency ratio (with amortisations)		41.6			41.8			(0.3 p.	)
NPL ratio		4.65			5.13			(0.48 p.	)
NPL coverage		85.4			83.4			2.0 p.
Number of employees		88,893			83,378			5,515			6.6
Number of branches		5,812			5,689			123			2.2

LOGO

Latin America

EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		3,289			3,432			3,415			3,484			3,545			3,610			3,334
Net fees		1,002			1,056			1,128			1,187			1,135			1,151			1,079
Gains (losses) on financial transactions		110			101			247			26			168			163			126
Other operating income *		(2	)		42			20			22			(2	)		27			23
Gross income		4,398			4,631			4,810			4,718			4,846			4,952			4,562
Operating expenses		(1,840	)		(1,915	)		(2,036	)		(2,060	)		(2,047	)		(2,027	)		(1,895	)
General administrative expenses		(1,657	)		(1,748	)		(1,844	)		(1,882	)		(1,865	)		(1,845	)		(1,738	)
Personnel		(882	)		(939	)		(981	)		(997	)		(1,002	)		(1,020	)		(956	)
Other general administrative expenses		(775	)		(809	)		(863	)		(885	)		(863	)		(826	)		(782	)
Depreciation and amortisation		(183	)		(167	)		(192	)		(178	)		(182	)		(182	)		(157	)
Net operating income		2,558			2,716			2,774			2,658			2,800			2,925			2,667
Net loan-loss provisions		(1,239	)		(1,281	)		(1,341	)		(1,258	)		(1,210	)		(1,226	)		(1,241	)
Other income		(161	)		(180	)		(231	)		(271	)		(203	)		(273	)		(264	)
Ordinary profit before taxes		1,158			1,255			1,203			1,129			1,386			1,426			1,163
Tax on profit		(304	)		(303	)		(278	)		(168	)		(401	)		(374	)		(223	)
Ordinary profit from continuing operations		854			952			925			960			985			1,052			940
Net profit from discontinued operations		—			—			—			—			—			—			—
Ordinary consolidated profit		854			952			925			960			985			1,052			940
Minority interests		199			215			204			172			145			176			156
Ordinary attributable profit to the Group		655			737			721			788			840			876			783

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


	31.03.14		30.06.14			30.09.14		31.12.14			31.03.15		30.06.15		30.09.15
Balance sheet
Customer loans **		126,074		132,196			136,111		139,955			146,660		145,094		129,593
Trading portfolio (w/o loans)		24,745		31,059			33,690		31,766			34,791		34,585		37,178
Available-for-sale financial assets		26,665		25,018			22,683		31,174			31,013		34,670		23,722
Due from credit institutions **		21,060		20,571			29,364		22,104			25,749		25,756		25,987
Intangible assets and property and equipment		3,812		3,804			3,839		3,912			4,116		4,056		3,416
Other assets		40,604		41,979			41,978		39,577			43,264		40,335		44,473
Total assets/liabilities & shareholders’ equity		242,959		254,626			267,665		268,487			285,594		284,495		264,369
Customer deposits **		120,815		122,383			131,120		131,826			135,772		133,402		118,044
Marketable debt securities **		27,848		31,792			32,935		31,920			34,578		36,915		31,939
Subordinated debt **		6,641		6,739			6,551		6,443			6,743		6,659		6,088
Insurance liabilities		—		—			—		—			1		1		1
Due to credit institutions **		26,504		30,846			30,672		35,978			38,413		40,921		41,682
Other liabilities		41,840		43,114			46,410		39,945			47,835		43,404		45,884
Stockholders’ equity ***		19,311		19,752			19,977		22,376			22,251		23,193		20,731
Other managed and marketed customer funds		63,161		68,213			70,896		69,567			70,073		71,585		62,030
Mutual funds		58,577		63,518			65,962		64,627			64,919		66,315		57,561
Pension funds		0		(0	)		0		(0	)		—		—		—
Managed portfolios		4,583		4,695			4,934		4,940			5,153		5,270		4,470
Managed and marketed customer funds		218,465		229,127			241,501		239,755			247,166		248,561		218,103

(**).- Including all on-balance sheet balances for this item
(***).- Capital + reserves + profit + valuation adjustments

NOTE: In 2Q’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

Other information
NPL ratio		5.19		5.18			5.13		4.79			4.64		4.74		4.65
NPL coverage		85.9		86.0			83.4		84.5			83.6		84.4		85.4
Cost of credit		4.36		4.06			3.88		3.70			3.53		3.39		3.33

LOGO

Latin America

Constant EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		10,489			9,564			925			9.7
Net fees		3,366			3,013			353			11.7
Gains (losses) on financial transactions		457			464			(7	)		(1.5	)
Other operating income *		48			52			(3	)		(6.3	)
Gross income		14,360			13,093			1,268			9.7
Operating expenses		(5,969	)		(5,494	)		(475	)		8.6
General administrative expenses		(5,448	)		(4,986	)		(462	)		9.3
Personnel		(2,978	)		(2,663	)		(314	)		11.8
Other general administrative expenses		(2,471	)		(2,323	)		(148	)		6.4
Depreciation and amortisation		(521	)		(508	)		(13	)		2.6
Net operating income		8,392			7,599			793			10.4
Net loan-loss provisions		(3,677	)		(3,599	)		(78	)		2.2
Other income		(740	)		(509	)		(231	)		45.3
Ordinary profit before taxes		3,975			3,491			484			13.9
Tax on profit		(998	)		(845	)		(153	)		18.1
Ordinary profit from continuing operations		2,977			2,646			331			12.5
Net profit from discontinued operations		—			—			—			—
Ordinary consolidated profit		2,977			2,646			331			12.5
Minority interests		477			596			(119	)		(20.0	)
Ordinary attributable profit to the Group		2,500			2,050			450			22.0
(*).- Including dividends, income from equity-accounted method and other operating income/expenses
							Variation
	30.09.15			30.09.14			Amount			%
Balance sheet
Customer loans **		129,593			109,479			20,115			18.4
Trading portfolio (w/o loans)		37,178			26,619			10,559			39.7
Available-for-sale financial assets		23,722			17,384			6,338			36.5
Due from credit institutions **		25,987			23,517			2,470			10.5
Intangible assets and property and equipment		3,416			2,932			484			16.5
Other assets		44,473			31,680			12,793			40.4
Total assets/liabilities & shareholders’ equity		264,369			211,610			52,759			24.9
Customer deposits **		118,044			105,093			12,951			12.3
Marketable debt securities **		31,939			25,138			6,802			27.1
Subordinated debt **		6,088			5,036			1,052			20.9
Insurance liabilities		1			—			1			—
Due to credit institutions **		41,682			24,205			17,477			72.2
Other liabilities		45,884			36,261			9,622			26.5
Stockholders’ equity ***		20,731			15,877			4,854			30.6
Other managed and marketed customer funds		62,030			53,483			8,548			16.0
Mutual funds		57,561			49,654			7,907			15.9
Pension funds		—			0			(0	)		(100.0	)
Managed portfolios		4,470			3,829			640			16.7
Managed and marketed customer funds		218,103			188,750			29,352			15.6

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

NOTE: In 9M’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

LOGO

Latin America

Constant EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		3,190			3,217			3,156			3,333			3,339			3,516			3,635
Net fees		975			994			1,045			1,127			1,070			1,123			1,173
Gains (losses) on financial transactions		114			114			236			32			163			157			136
Other operating income *		(3	)		37			17			17			(3	)		25			26
Gross income		4,276			4,362			4,455			4,508			4,569			4,821			4,970
Operating expenses		(1,793	)		(1,808	)		(1,894	)		(1,965	)		(1,934	)		(1,975	)		(2,059	)
General administrative expenses		(1,615	)		(1,653	)		(1,718	)		(1,796	)		(1,763	)		(1,798	)		(1,887	)
Personnel		(859	)		(888	)		(916	)		(953	)		(947	)		(993	)		(1,037	)
Other general administrative expenses		(756	)		(765	)		(802	)		(844	)		(815	)		(805	)		(850	)
Depreciation and amortisation		(177	)		(155	)		(176	)		(169	)		(171	)		(177	)		(172	)
Net operating income		2,483			2,554			2,562			2,543			2,635			2,846			2,910
Net loan-loss provisions		(1,192	)		(1,183	)		(1,224	)		(1,189	)		(1,137	)		(1,192	)		(1,348	)
Other income		(151	)		(161	)		(197	)		(250	)		(187	)		(264	)		(289	)
Ordinary profit before taxes		1,139			1,210			1,141			1,104			1,311			1,389			1,274
Tax on profit		(296	)		(288	)		(262	)		(160	)		(378	)		(365	)		(255	)
Ordinary profit from continuing operations		844			922			879			944			933			1,024			1,019
Net profit from discontinued operations		—			—			—			—			—			—			—
Ordinary consolidated profit		844			922			879			944			933			1,024			1,019
Minority interests		196			207			192			174			139			170			168
Ordinary attributable profit to the Group		647			715			687			770			795			854			851
(*).- Including dividends, income from equity-accounted method and other operating income/expenses
	31.03.14			30.06.14			30.09.14			31.12.14			31.03.15			30.06.15			30.09.15
Balance sheet
Customer loans **		103,643			106,004			109,479			115,245			120,948			123,119			129,593
Trading portfolio (w/o loans)		20,706			24,596			26,619			25,835			28,928			29,560			37,178
Available-for-sale financial assets		20,451			18,629			17,384			24,259			24,921			28,155			23,722
Due from credit institutions **		17,811			16,646			23,517			18,487			21,337			21,775			25,987
Intangible assets and property and equipment		2,948			2,855			2,932			3,107			3,350			3,363			3,416
Other assets		31,356			31,129			31,680			31,092			35,004			33,054			44,473
Total assets/liabilities & shareholders’ equity		196,916			199,859			211,610			218,026			234,488			239,026			264,369
Customer deposits **		99,183			97,485			105,093			108,879			112,217			113,249			118,044
Marketable debt securities **		21,562			24,104			25,138			25,164			27,990			30,320			31,939
Subordinated debt **		5,177			5,044			5,036			5,091			5,456			5,473			6,088
Insurance liabilities		—			—			—			—			1			1			1
Due to credit institutions **		21,618			24,461			24,205			28,501			31,378			33,999			41,682
Other liabilities		33,647			33,135			36,261			32,200			39,171			36,556			45,884
Stockholders’ equity ***		15,729			15,630			15,877			18,192			18,275			19,430			20,731
Other managed and marketed customer funds		48,645			50,824			53,483			54,421			56,651			58,631			62,030
Mutual funds		45,052			47,245			49,654			50,497			52,462			54,277			57,561
Pension funds		0			(0	)		0			(0	)		—			—			—
Managed portfolios		3,593			3,579			3,829			3,924			4,188			4,354			4,470
Managed and marketed customer funds		174,567			177,458			188,750			193,554			202,314			207,672			218,103

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

NOTE: In 2Q’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

LOGO

Latin America. Results

EUR million


	Gross income							Net operating income								Ordinary profit to the Group *
	9M ‘15		9M ‘14		Var. (%)			9M ‘15		9M ‘14			Var. (%)			9M ‘15		9M ‘14			Var. (%)

Brazil *		8,643		8,936		(3.3	)		5,251		5,292			(0.8	)		1,315		1,076			22.1
Mexico		2,467		2,239		10.2			1,431		1,284			11.5			456		434			5.0
Chile		1,792		1,586		13.0			1,049		949			10.6			378		339			11.5
Argentina		1,155		854		35.3			516		437			18.1			274		217			26.0
Uruguay		234		184		27.2			104		66			56.1			54		37			48.2
Peru		57		35		60.5			39		23			73.6			23		15			54.2
Rest		12		4		204.4			2		(3	)		—			0		(5	)		—
Total *		14,360		13,839		3.8			8,392		8,048			4.3			2,500		2,114			18.3

(*).- In 9M’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

LOGO

Latin America. Results

Constant EUR million


	Gross income						Net operating income							Ordinary profit to the Group *
	9M ‘15		9M ‘14		Var. (%)		9M ‘15		9M ‘14			Var. (%)		9M ‘15		9M ‘14			Var. (%)
Brazil *		8,643		7,943		8.8		5,251		4,704			11.6		1,315		957			37.4
Mexico		2,467		2,296		7.4		1,431		1,317			8.7		456		445			2.4
Chile		1,792		1,695		5.8		1,049		1,014			3.5		378		362			4.4
Argentina		1,155		923		25.1		516		472			9.2		274		235			16.6
Uruguay		234		194		21.1		104		70			48.6		54		39			41.2
Peru		57		39		47.5		39		25			59.5		23		17			41.6
Rest		12		4		238.0		2		(2	)		—		0		(4	)		—
Total *		14,360		13,093		9.7		8,392		7,599			10.4		2,500		2,050			22.0

(*).- In 9M’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

LOGO

Brazil

EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		6,416			6,693			(276	)		(4.1	)
Net fees		2,012			2,050			(38	)		(1.9	)
Gains (losses) on financial transactions		96			117			(21	)		(18.0	)
Other operating income *		119			77			43			55.6
Gross income		8,643			8,936			(293	)		(3.3	)
Operating expenses		(3,393	)		(3,644	)		252			(6.9	)
General administrative expenses		(3,062	)		(3,261	)		198			(6.1	)
Personnel		(1,671	)		(1,738	)		68			(3.9	)
Other general administrative expenses		(1,392	)		(1,523	)		131			(8.6	)
Depreciation and amortisation		(330	)		(384	)		53			(13.9	)
Net operating income		5,251			5,292			(42	)		(0.8	)
Net loan-loss provisions		(2,467	)		(2,795	)		328			(11.7	)
Other income		(727	)		(561	)		(166	)		29.6
Ordinary profit before taxes		2,057			1,936			121			6.2
Tax on profit		(582	)		(533	)		(49	)		9.2
Ordinary profit from continuing operations		1,474			1,403			72			5.1
Net profit from discontinued operations		—			—			—			—
Ordinary consolidated profit		1,474			1,403			72			5.1
Minority interests		160			326			(167	)		(51.0	)
Ordinary attributable profit to the Group		1,315			1,076			238			22.1
(*).- Including dividends, income from equity-accounted method and other operating income/expenses
							Variation
	30.09.15			30.09.14			Amount			%
Balance sheet
Customer loans **		58,227			72,918			(14,690	)		(20.1	)
Trading portfolio (w/o loans)		14,836			18,130			(3,293	)		(18.2	)
Available-for-sale financial assets		15,086			15,290			(204	)		(1.3	)
Due from credit institutions **		12,564			14,982			(2,417	)		(16.1	)
Intangible assets and property and equipment		2,129			2,742			(614	)		(22.4	)
Other assets		32,139			30,763			1,376			4.5
Total assets/liabilities & shareholders’ equity		134,982			154,824			(19,842	)		(12.8	)
Customer deposits **		54,847			70,892			(16,046	)		(22.6	)
Marketable debt securities **		21,045			22,999			(1,955	)		(8.5	)
Subordinated debt **		3,986			4,372			(385	)		(8.8	)
Insurance liabilities		1			—			1			—
Due to credit institutions **		22,412			17,843			4,569			25.6
Other liabilities		21,795			27,543			(5,748	)		(20.9	)
Stockholders’ equity ***		10,896			11,175			(279	)		(2.5	)
Other managed and marketed customer funds		41,753			50,864			(9,110	)		(17.9	)
Mutual funds		39,129			47,513			(8,384	)		(17.6	)
Pension funds		—			0			(0	)		(100.0	)
Managed portfolios		2,625			3,351			(727	)		(21.7	)
Managed and marketed customer funds		121,631			149,127			(27,496	)		(18.4	)

(**).- Including all on-balance sheet balances for this item
(***).- Capital + reserves + profit + valuation adjustments

NOTE: In 9M’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

Ratios (%) and other data
Ordinary ROE		13.77			12.82			0.94 p.
Efficiency ratio (with amortisations)		39.3			40.8			(1.5 p.	)
NPL ratio		5.30			5.64			(0.34 p.	)
NPL coverage		96.0			91.4			4.6 p.
Number of employees		48,955			46,687			2,268			4.9
Number of branches		3,436			3,427			9			0.3

LOGO

Brazil

EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		2,179			2,266			2,247			2,157			2,254			2,186			1,976
Net fees		627			683			740			781			707			683			622
Gains (losses) on financial transactions		13			(40	)		144			(35	)		24			66			6
Other operating income *		7			44			26			40			21			46			53
Gross income		2,826			2,952			3,158			2,943			3,007			2,981			2,656
Operating expenses		(1,140	)		(1,204	)		(1,299	)		(1,298	)		(1,187	)		(1,151	)		(1,056	)
General administrative expenses		(1,014	)		(1,083	)		(1,163	)		(1,177	)		(1,068	)		(1,034	)		(960	)
Personnel		(542	)		(583	)		(613	)		(615	)		(574	)		(571	)		(525	)
Other general administrative expenses		(472	)		(501	)		(550	)		(561	)		(494	)		(463	)		(435	)
Depreciation and amortisation		(126	)		(121	)		(136	)		(121	)		(118	)		(116	)		(96	)
Net operating income		1,686			1,748			1,858			1,645			1,820			1,830			1,600
Net loan-loss provisions		(905	)		(933	)		(958	)		(887	)		(826	)		(828	)		(813	)
Other income		(143	)		(166	)		(253	)		(244	)		(209	)		(263	)		(255	)
Ordinary profit before taxes		639			650			647			514			785			739			533
Tax on profit		(194	)		(178	)		(160	)		(111	)		(253	)		(230	)		(99	)
Ordinary profit from continuing operations		444			471			487			403			532			509			434
Net profit from discontinued operations		—			—			—			—			—			—			—
Ordinary consolidated profit		444			471			487			403			532			509			434
Minority interests		106			110			111			42			55			56			49
Ordinary attributable profit to the Group		339			362			376			361			477			452			385
(*).- Including dividends, income from equity-accounted method and other operating income/expenses
	31.03.14			30.06.14			30.09.14			31.12.14			31.03.15			30.06.15			30.09.15
Balance sheet
Customer loans **		68,518			71,475			72,918			74,373			72,492			72,083			58,227
Trading portfolio (w/o loans)		11,314			16,954			18,130			18,256			14,720			15,822			14,836
Available-for-sale financial assets		19,790			18,352			15,290			22,939			23,071			26,054			15,086
Due from credit institutions **		9,048			10,129			14,982			10,276			11,351			13,299			12,564
Intangible assets and property and equipment		2,797			2,796			2,742			2,640			2,683			2,672			2,129
Other assets		29,629			31,608			30,763			27,803			29,622			28,573			32,139
Total assets/liabilities & shareholders’ equity		141,097			151,315			154,824			156,287			153,938			158,503			134,982
Customer deposits **		65,934			68,450			70,892			68,539			65,221			67,207			54,847
Marketable debt securities **		19,898			21,772			22,999			21,903			22,597			24,688			21,045
Subordinated debt **		4,585			4,821			4,372			4,368			4,471			4,455			3,986
Insurance liabilities		—			—			—			—			1			1			1
Due to credit institutions **		14,903			17,281			17,843			24,108			22,329			25,052			22,412
Other liabilities		24,873			27,691			27,543			24,386			27,084			23,590			21,795
Stockholders’ equity ***		10,904			11,300			11,175			12,983			12,236			13,509			10,896
Other managed and marketed customer funds		45,749			49,593			50,864			49,806			47,664			49,878			41,753
Mutual funds		42,602			46,394			47,513			46,559			44,589			46,614			39,129
Pension funds		0			(0	)		0			(0	)		—			—			—
Managed portfolios		3,147			3,199			3,351			3,248			3,075			3,264			2,625
Managed and marketed customer funds		136,165			144,636			149,127			144,616			139,953			146,228			121,631

(**).- Including all on-balance sheet balances for this item
(***).- Capital + reserves + profit + valuation adjustments

NOTE: In 2Q’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

Other information
NPL ratio		5.74			5.78			5.64			5.05			4.90			5.13			5.30
NPL coverage		95.2			94.8			91.4			95.4			95.2			95.9			96.0
Cost of credit		5.82			5.38			5.14			4.91			4.63			4.45			4.40

LOGO

Brazil

Constant EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		6,416			5,949			468			7.9
Net fees		2,012			1,823			190			10.4
Gains (losses) on financial transactions		96			104			(8	)		(7.7	)
Other operating income *		119			68			51			75.0
Gross income		8,643			7,943			700			8.8
Operating expenses		(3,393	)		(3,239	)		(153	)		4.7
General administrative expenses		(3,062	)		(2,898	)		(164	)		5.7
Personnel		(1,671	)		(1,545	)		(126	)		8.1
Other general administrative expenses		(1,392	)		(1,353	)		(38	)		2.8
Depreciation and amortisation		(330	)		(341	)		11			(3.1	)
Net operating income		5,251			4,704			547			11.6
Net loan-loss provisions		(2,467	)		(2,485	)		17			(0.7	)
Other income		(727	)		(499	)		(228	)		45.8
Ordinary profit before taxes		2,057			1,721			336			19.5
Tax on profit		(582	)		(474	)		(108	)		22.9
Ordinary profit from continuing operations		1,474			1,247			228			18.2
Net profit from discontinued operations		—			—			—			—
Ordinary consolidated profit		1,474			1,247			228			18.2
Minority interests		160			290			(130	)		(44.9	)
Ordinary attributable profit to the Group		1,315			957			358			37.4
(*).- Including dividends, income from equity-accounted method and other operating income/expenses
							Variation
	30.09.15			30.09.14			Amount			%
Balance sheet
Customer loans **		58,227			50,156			8,071			16.1
Trading portfolio (w/o loans)		14,836			12,470			2,366			19.0
Available-for-sale financial assets		15,086			10,517			4,569			43.4
Due from credit institutions **		12,564			10,305			2,259			21.9
Intangible assets and property and equipment		2,129			1,886			242			12.9
Other assets		32,139			21,160			10,979			51.9
Total assets/liabilities & shareholders’ equity		134,982			106,495			28,487			26.7
Customer deposits **		54,847			48,763			6,084			12.5
Marketable debt securities **		21,045			15,820			5,225			33.0
Subordinated debt **		3,986			3,007			979			32.6
Insurance liabilities		1			—			1			—
Due to credit institutions **		22,412			12,273			10,139			82.6
Other liabilities		21,795			18,945			2,850			15.0
Stockholders’ equity ***		10,896			7,687			3,209			41.7
Other managed and marketed customer funds		41,753			34,987			6,767			19.3
Mutual funds		39,129			32,681			6,447			19.7
Pension funds		—			0			(0	)		(100.0	)
Managed portfolios		2,625			2,305			320			13.9
Managed and marketed customer funds		121,631			102,576			19,055			18.6

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

NOTE: In 9M’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

LOGO

Brazil

Constant EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		2,025			1,987			1,938			1,965			2,079			2,128			2,210
Net fees		583			599			640			709			652			664			695
Gains (losses) on financial transactions		12			(37	)		128			(31	)		22			63			11
Other operating income *		6			39			22			37			19			44			56
Gross income		2,626			2,589			2,729			2,680			2,772			2,899			2,972
Operating expenses		(1,059	)		(1,057	)		(1,123	)		(1,180	)		(1,094	)		(1,120	)		(1,179	)
General administrative expenses		(942	)		(951	)		(1,005	)		(1,070	)		(985	)		(1,007	)		(1,070	)
Personnel		(504	)		(512	)		(530	)		(560	)		(530	)		(556	)		(585	)
Other general administrative expenses		(439	)		(439	)		(476	)		(510	)		(455	)		(451	)		(485	)
Depreciation and amortisation		(117	)		(106	)		(118	)		(110	)		(109	)		(113	)		(108	)
Net operating income		1,566			1,532			1,605			1,499			1,678			1,780			1,793
Net loan-loss provisions		(840	)		(818	)		(827	)		(808	)		(762	)		(805	)		(900	)
Other income		(132	)		(146	)		(221	)		(221	)		(193	)		(255	)		(280	)
Ordinary profit before taxes		594			569			558			470			723			720			613
Tax on profit		(181	)		(156	)		(138	)		(102	)		(233	)		(225	)		(125	)
Ordinary profit from continuing operations		413			414			420			368			491			495			489
Net profit from discontinued operations		—			—			—			—			—			—			—
Ordinary consolidated profit		413			414			420			368			491			495			489
Minority interests		98			96			96			39			51			55			54
Ordinary attributable profit to the Group		315			317			325			329			440			440			434
(*).- Including dividends, income from equity-accounted method and other operating income/expenses
	31.03.14			30.06.14			30.09.14			31.12.14			31.03.15			30.06.15			30.09.15
Balance sheet
Customer loans **		47,826			47,857			50,156			53,458			56,556			55,820			58,227
Trading portfolio (w/o loans)		7,897			11,352			12,470			13,122			11,484			12,252			14,836
Available-for-sale financial assets		13,814			12,288			10,517			16,488			17,999			20,176			15,086
Due from credit institutions **		6,316			6,782			10,305			7,386			8,856			10,299			12,564
Intangible assets and property and equipment		1,953			1,872			1,886			1,897			2,093			2,069			2,129
Other assets		20,681			21,164			21,160			19,984			23,110			22,127			32,139
Total assets/liabilities & shareholders’ equity		98,486			101,316			106,495			112,335			120,099			122,744			134,982
Customer deposits **		46,022			45,832			48,763			49,264			50,883			52,045			54,847
Marketable debt securities **		13,889			14,578			15,820			15,743			17,630			19,118			21,045
Subordinated debt **		3,200			3,228			3,007			3,139			3,488			3,450			3,986
Insurance liabilities		—			—			—			—			1			1			1
Due to credit institutions **		10,402			11,571			12,273			17,328			17,420			19,400			22,412
Other liabilities		17,362			18,541			18,945			17,528			21,130			18,268			21,795
Stockholders’ equity ***		7,611			7,566			7,687			9,332			9,546			10,462			10,896
Other managed and marketed customer funds		31,933			33,206			34,987			35,799			37,187			38,625			41,753
Mutual funds		29,736			31,064			32,681			33,465			34,787			36,097			39,129
Pension funds		0			(0	)		0			(0	)		—			—			—
Managed portfolios		2,197			2,142			2,305			2,334			2,399			2,528			2,625
Managed and marketed customer funds		95,044			96,844			102,576			103,947			109,188			113,238			121,631

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

NOTE: In 2Q’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

LOGO

Brazil

R$ million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		22,372			20,742			1,630			7.9
Net fees		7,016			6,355			661			10.4
Gains (losses) on financial transactions		334			362			(28	)		(7.7	)
Other operating income *		415			237			178			75.0
Gross income		30,137			27,696			2,441			8.8
Operating expenses		(11,829	)		(11,294	)		(535	)		4.7
General administrative expenses		(10,677	)		(10,105	)		(572	)		5.7
Personnel		(5,825	)		(5,387	)		(438	)		8.1
Other general administrative expenses		(4,852	)		(4,719	)		(134	)		2.8
Depreciation and amortisation		(1,152	)		(1,189	)		37			(3.1	)
Net operating income		18,307			16,402			1,906			11.6
Net loan-loss provisions		(8,602	)		(8,663	)		61			(0.7	)
Other income		(2,534	)		(1,739	)		(796	)		45.8
Ordinary profit before taxes		7,171			6,000			1,171			19.5
Tax on profit		(2,030	)		(1,652	)		(378	)		22.9
Ordinary profit from continuing operations		5,141			4,347			793			18.2
Net profit from discontinued operations		—			—			—			—
Ordinary consolidated profit		5,141			4,347			793			18.2
Minority interests		557			1,011			(454	)		(44.9	)
Ordinary attributable profit to the Group		4,584			3,336			1,248			37.4
(*).- Including dividends, income from equity-accounted method and other operating income/expenses
							Variation
	30.09.15			30.09.14			Amount			%
Balance sheet
Customer loans **		260,905			224,739			36,166			16.1
Trading portfolio (w/o loans)		66,478			55,877			10,601			19.0
Available-for-sale financial assets		67,598			47,125			20,474			43.4
Due from credit institutions **		56,297			46,175			10,123			21.9
Intangible assets and property and equipment		9,538			8,452			1,087			12.9
Other assets		144,008			94,815			49,193			51.9
Total assets/liabilities & shareholders’ equity		604,826			477,183			127,643			26.7
Customer deposits **		245,756			218,497			27,260			12.5
Marketable debt securities **		94,297			70,886			23,411			33.0
Subordinated debt **		17,861			13,473			4,388			32.6
Insurance liabilities		4			—			4			—
Due to credit institutions **		100,426			54,994			45,431			82.6
Other liabilities		97,659			84,889			12,770			15.0
Stockholders’ equity ***		48,822			34,443			14,379			41.7
Other managed and marketed customer funds		187,089			156,768			30,321			19.3
Mutual funds		175,328			146,439			28,889			19.7
Pension funds		—			0			(0	)		(100.0	)
Managed portfolios		11,761			10,329			1,432			13.9
Managed and marketed customer funds		545,003			459,623			85,379			18.6

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

NOTE: In 9M’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

LOGO

Brazil

R$ million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		7,060			6,927			6,756			6,851			7,248			7,419			7,705
Net fees		2,032			2,090			2,233			2,473			2,275			2,317			2,424
Gains (losses) on financial transactions		42			(127	)		447			(107	)		77			220			37
Other operating income *		21			137			78			128			67			153			195
Gross income		9,156			9,026			9,514			9,344			9,666			10,109			10,362
Operating expenses		(3,694	)		(3,684	)		(3,917	)		(4,116	)		(3,815	)		(3,904	)		(4,110	)
General administrative expenses		(3,285	)		(3,315	)		(3,506	)		(3,731	)		(3,434	)		(3,511	)		(3,732	)
Personnel		(1,756	)		(1,784	)		(1,847	)		(1,952	)		(1,847	)		(1,937	)		(2,040	)
Other general administrative expenses		(1,529	)		(1,531	)		(1,658	)		(1,779	)		(1,587	)		(1,573	)		(1,692	)
Depreciation and amortisation		(409	)		(369	)		(411	)		(385	)		(381	)		(394	)		(378	)
Net operating income		5,462			5,343			5,597			5,228			5,851			6,205			6,251
Net loan-loss provisions		(2,930	)		(2,850	)		(2,882	)		(2,818	)		(2,657	)		(2,808	)		(3,138	)
Other income		(462	)		(508	)		(770	)		(772	)		(672	)		(888	)		(975	)
Ordinary profit before taxes		2,070			1,985			1,945			1,638			2,523			2,509			2,139
Tax on profit		(630	)		(543	)		(479	)		(356	)		(812	)		(783	)		(435	)
Ordinary profit from continuing operations		1,440			1,442			1,466			1,283			1,711			1,726			1,704
Net profit from discontinued operations		—			—			—			—			—			—			—
Ordinary consolidated profit		1,440			1,442			1,466			1,283			1,711			1,726			1,704
Minority interests		342			336			333			137			177			191			190
Ordinary attributable profit to the Group		1,098			1,106			1,132			1,146			1,534			1,536			1,514
(*).- Including dividends, income from equity-accounted method and other operating income/expenses
	31.03.14			30.06.14			30.09.14			31.12.14			31.03.15			30.06.15			30.09.15
Balance sheet
Customer loans **		214,298			214,440			224,739			239,534			253,417			250,119			260,905
Trading portfolio (w/o loans)		35,386			50,867			55,877			58,797			51,459			54,899			66,478
Available-for-sale financial assets		61,896			55,060			47,125			73,879			80,650			90,406			67,598
Due from credit institutions **		28,299			30,390			46,175			33,096			39,680			46,147			56,297
Intangible assets and property and equipment		8,749			8,389			8,452			8,501			9,380			9,271			9,538
Other assets		92,667			94,830			94,815			89,545			103,552			99,147			144,008
Total assets/liabilities & shareholders’ equity		441,295			453,975			477,183			503,353			538,138			549,990			604,826
Customer deposits **		206,215			205,364			218,497			220,744			227,998			233,203			245,756
Marketable debt securities **		62,233			65,322			70,886			70,543			78,994			85,665			94,297
Subordinated debt **		14,339			14,463			13,473			14,067			15,630			15,457			17,861
Insurance liabilities		—			—			—			—			3			4			4
Due to credit institutions **		46,611			51,846			54,994			77,644			78,056			86,929			100,426
Other liabilities		77,794			83,077			84,889			78,540			94,682			81,855			97,659
Stockholders’ equity ***		34,103			33,903			34,443			41,815			42,774			46,876			48,822
Other managed and marketed customer funds		143,083			148,788			156,768			160,410			166,625			173,071			187,089
Mutual funds		133,241			139,191			146,439			149,951			155,875			161,745			175,328
Pension funds		0			(0	)		0			(0	)		—			—			—
Managed portfolios		9,842			9,597			10,329			10,459			10,750			11,326			11,761
Managed and marketed customer funds		425,871			433,937			459,623			465,765			489,248			507,397			545,003

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

NOTE: In 2Q’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

LOGO

Mexico

EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		1,818			1,567			251			16.0
Net fees		601			568			33			5.9
Gains (losses) on financial transactions		102			139			(37	)		(26.4	)
Other operating income *		(54	)		(34	)		(20	)		58.9
Gross income		2,467			2,239			228			10.2
Operating expenses		(1,035	)		(955	)		(80	)		8.4
General administrative expenses		(948	)		(879	)		(69	)		7.8
Personnel		(504	)		(435	)		(68	)		15.7
Other general administrative expenses		(444	)		(444	)		(0	)		0.1
Depreciation and amortisation		(88	)		(76	)		(12	)		15.2
Net operating income		1,431			1,284			147			11.5
Net loan-loss provisions		(662	)		(579	)		(83	)		14.3
Other income		6			2			4			159.2
Profit before taxes		776			707			68			9.7
Tax on profit		(169	)		(139	)		(30	)		21.7
Profit from continuing operations		607			569			38			6.7
Net profit from discontinued operations		—			—			—			—
Consolidated profit		607			569			38			6.7
Minority interests		152			135			17			12.3
Attributable profit to the Group		456			434			22			5.0
(*).- Including dividends, income from equity-accounted method and other operating income/expenses
							Variation
	30.09.15			30.09.14			Amount			%
Balance sheet
Customer loans **		28,198			26,162			2,036			7.8
Trading portfolio (w/o loans)		18,448			12,469			5,979			47.9
Available-for-sale financial assets		4,939			4,097			841			20.5
Due from credit institutions **		7,744			9,606			(1,862	)		(19.4	)
Intangible assets and property and equipment		363			392			(29	)		(7.4	)
Other assets		5,716			5,463			253			4.6
Total assets/liabilities & shareholders’ equity		65,408			58,189			7,219			12.4
Customer deposits **		26,540			28,691			(2,151	)		(7.5	)
Marketable debt securities **		4,068			3,791			277			7.3
Subordinated debt **		1,159			1,027			132			12.9
Insurance liabilities		—			—			—			—
Due to credit institutions **		11,794			6,617			5,177			78.2
Other liabilities		16,801			13,302			3,499			26.3
Stockholders’ equity ***		5,045			4,762			284			6.0
Other managed and marketed customer funds		11,631			12,406			(775	)		(6.2	)
Mutual funds		11,631			12,406			(775	)		(6.2	)
Pension funds		—			—			—			—
Managed portfolios		—			—			—			—
Managed and marketed customer funds		43,399			45,915			(2,516	)		(5.5	)

(**).- Including all on-balance sheet balances for this item
(***).- Capital + reserves + profit + valuation adjustments

Ratios (%) and other data
ROE		12.51			12.67			(0.15 p.	)
Efficiency ratio (with amortisations)		42.0			42.6			(0.7 p.	)
NPL ratio		3.54			3.74			(0.20 p.	)
NPL coverage		93.0			90.1			2.9 p.
Number of employees		17,704			15,912			1,792			11.3
Number of branches		1,354			1,299			55			4.2

LOGO

Mexico

EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		499			518			549			572			597			621			600
Net fees		189			188			191			197			194			213			194
Gains (losses) on financial transactions		26			61			52			22			43			33			26
Other operating income *		(12	)		(7	)		(15	)		(10	)		(15	)		(14	)		(26	)
Gross income		701			760			778			780			819			854			794
Operating expenses		(312	)		(317	)		(325	)		(328	)		(355	)		(353	)		(327	)
General administrative expenses		(286	)		(293	)		(299	)		(301	)		(325	)		(322	)		(301	)
Personnel		(138	)		(144	)		(153	)		(158	)		(168	)		(173	)		(163	)
Other general administrative expenses		(148	)		(149	)		(147	)		(143	)		(157	)		(148	)		(138	)
Depreciation and amortisation		(26	)		(24	)		(26	)		(27	)		(30	)		(32	)		(26	)
Net operating income		389			442			453			452			463			501			467
Net loan-loss provisions		(179	)		(191	)		(210	)		(177	)		(211	)		(224	)		(227	)
Other income		(2	)		(2	)		6			(1	)		8			(2	)		1
Profit before taxes		209			250			249			274			260			274			241
Tax on profit		(43	)		(50	)		(45	)		(46	)		(59	)		(61	)		(48	)
Profit from continuing operations		166			200			204			228			201			213			193
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		166			200			204			228			201			213			193
Minority interests		40			46			49			56			48			53			50
Attributable profit to the Group		126			154			154			172			153			160			143
(*).- Including dividends, income from equity-accounted method and other operating income/expenses
	31.03.14			30.06.14			30.09.14			31.12.14			31.03.15			30.06.15			30.09.15
Balance sheet
Customer loans **		22,381			24,516			26,162			25,873			29,112			28,609			28,198
Trading portfolio (w/o loans)		11,293			11,603			12,469			10,185			16,677			15,391			18,448
Available-for-sale financial assets		3,475			3,944			4,097			4,624			4,065			3,986			4,939
Due from credit institutions **		8,347			6,975			9,606			7,058			8,447			7,086			7,744
Intangible assets and property and equipment		395			397			392			440			493			460			363
Other assets		5,637			5,494			5,463			5,545			6,323			5,781			5,716
Total assets/liabilities & shareholders’ equity		51,529			52,928			58,189			53,726			65,118			61,312			65,408
Customer deposits **		25,592			24,803			28,691			28,627			30,965			28,747			26,540
Marketable debt securities **		2,496			3,818			3,791			3,266			4,492			4,720			4,068
Subordinated debt **		946			971			1,027			1,088			1,202			1,181			1,159
Insurance liabilities		—			—			—			—			—			—			—
Due to credit institutions **		5,935			7,868			6,617			6,206			9,988			8,473			11,794
Other liabilities		12,010			10,799			13,302			9,796			13,608			13,329			16,801
Stockholders’ equity ***		4,551			4,669			4,762			4,744			4,863			4,862			5,045
Other managed and marketed customer funds		11,016			11,724			12,406			11,523			13,222			12,557			11,631
Mutual funds		11,016			11,724			12,406			11,523			13,222			12,557			11,631
Pension funds		—			—			—			—			—			—			—
Managed portfolios		—			—			—			—			—			—			—
Managed and marketed customer funds		40,049			41,316			45,915			44,504			49,881			47,205			43,399

(**).- Including all on-balance sheet balances for this item
(***).- Capital + reserves + profit + valuation adjustments

Other information
NPL ratio		3.62			3.52			3.74			3.84			3.71			3.81			3.54
NPL coverage		98.6			96.6			90.1			86.1			88.4			87.5			93.0
Cost of credit		3.59			3.58			3.26			2.98			2.92			2.89			2.87

LOGO

Mexico

Constant EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		1,818			1,607			211			13.1
Net fees		601			582			19			3.2
Gains (losses) on financial transactions		102			142			(40	)		(28.3	)
Other operating income *		(54	)		(35	)		(19	)		54.9
Gross income		2,467			2,296			170			7.4
Operating expenses		(1,035	)		(979	)		(56	)		5.7
General administrative expenses		(948	)		(901	)		(46	)		5.1
Personnel		(504	)		(446	)		(57	)		12.8
Other general administrative expenses		(444	)		(455	)		11			(2.4	)
Depreciation and amortisation		(88	)		(78	)		(10	)		12.3
Net operating income		1,431			1,317			114			8.7
Net loan-loss provisions		(662	)		(594	)		(68	)		11.4
Other income		6			3			4			152.7
Profit before taxes		776			726			50			6.9
Tax on profit		(169	)		(142	)		(26	)		18.6
Profit from continuing operations		607			583			24			4.1
Net profit from discontinued operations		—			—			—			—
Consolidated profit		607			583			24			4.1
Minority interests		152			138			13			9.5
Attributable profit to the Group		456			445			11			2.4
(*).- Including dividends, income from equity-accounted method and other operating income/expenses
							Variation
	30.09.15			30.09.14			Amount			%
Balance sheet
Customer loans **		28,198			23,433			4,764			20.3
Trading portfolio (w/o loans)		18,448			11,169			7,279			65.2
Available-for-sale financial assets		4,939			3,670			1,269			34.6
Due from credit institutions **		7,744			8,604			(860	)		(10.0	)
Intangible assets and property and equipment		363			351			12			3.4
Other assets		5,716			4,894			823			16.8
Total assets/liabilities & shareholders’ equity		65,408			52,121			13,287			25.5
Customer deposits **		26,540			25,699			841			3.3
Marketable debt securities **		4,068			3,396			673			19.8
Subordinated debt **		1,159			920			239			26.0
Insurance liabilities		—			—			—			—
Due to credit institutions **		11,794			5,926			5,867			99.0
Other liabilities		16,801			11,915			4,886			41.0
Stockholders’ equity ***		5,045			4,265			780			18.3
Other managed and marketed customer funds		11,631			11,112			519			4.7
Mutual funds		11,631			11,112			519			4.7
Pension funds		—			—			—			—
Managed portfolios		—			—			—			—
Managed and marketed customer funds		43,399			41,126			2,273			5.5

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

LOGO

Mexico

Constant EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		522			533			551			572			580			606			632
Net fees		198			193			192			196			188			209			204
Gains (losses) on financial transactions		27			63			52			21			41			33			28
Other operating income *		(13	)		(7	)		(15	)		(10	)		(14	)		(13	)		(27	)
Gross income		734			782			780			779			795			834			837
Operating expenses		(327	)		(327	)		(326	)		(327	)		(345	)		(345	)		(345	)
General administrative expenses		(299	)		(302	)		(300	)		(301	)		(316	)		(314	)		(318	)
Personnel		(145	)		(148	)		(153	)		(158	)		(163	)		(169	)		(171	)
Other general administrative expenses		(154	)		(154	)		(147	)		(143	)		(153	)		(145	)		(146	)
Depreciation and amortisation		(27	)		(25	)		(26	)		(27	)		(29	)		(31	)		(28	)
Net operating income		407			456			454			452			450			489			492
Net loan-loss provisions		(187	)		(196	)		(211	)		(177	)		(205	)		(219	)		(238	)
Other income		(2	)		(2	)		6			(1	)		7			(2	)		1
Profit before taxes		219			257			250			274			253			268			255
Tax on profit		(45	)		(52	)		(45	)		(46	)		(58	)		(60	)		(51	)
Profit from continuing operations		173			206			205			229			195			208			204
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		173			206			205			229			195			208			204
Minority interests		42			47			50			56			47			52			53
Attributable profit to the Group		132			159			155			173			149			156			151

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


	31.03.14		30.06.14		30.09.14		31.12.14		31.03.15		30.06.15		30.09.15
Balance sheet
Customer loans **		21,246		22,883		23,433		24,361		25,331		26,433		28,198
Trading portfolio (w/o loans)		10,721		10,830		11,169		9,590		14,511		14,220		18,448
Available-for-sale financial assets		3,299		3,681		3,670		4,354		3,537		3,683		4,939
Due from credit institutions **		7,924		6,510		8,604		6,646		7,350		6,547		7,744
Intangible assets and property and equipment		375		370		351		414		429		425		363
Other assets		5,351		5,128		4,894		5,221		5,502		5,341		5,716
Total assets/liabilities & shareholders’ equity		48,916		49,402		52,121		50,587		56,661		56,648		65,408
Customer deposits **		24,294		23,151		25,699		26,954		26,944		26,560		26,540
Marketable debt securities **		2,369		3,564		3,396		3,075		3,909		4,361		4,068
Subordinated debt **		898		906		920		1,025		1,046		1,091		1,159
Insurance liabilities		—		—		—		—		—		—		—
Due to credit institutions **		5,634		7,343		5,926		5,843		8,691		7,829		11,794
Other liabilities		11,401		10,080		11,915		9,223		11,841		12,315		16,801
Stockholders’ equity ***		4,320		4,358		4,265		4,466		4,231		4,492		5,045
Other managed and marketed customer funds		10,457		10,943		11,112		10,850		11,505		11,602		11,631
Mutual funds		10,457		10,943		11,112		10,850		11,505		11,602		11,631
Pension funds		—		—		—		—		—		—		—
Managed portfolios		—		—		—		—		—		—		—
Managed and marketed customer funds		38,019		38,563		41,126		41,903		43,403		43,614		43,399

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

LOGO

Mexico

Million pesos


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		31,483			27,831			3,652			13.1
Net fees		10,413			10,088			325			3.2
Gains (losses) on financial transactions		1,770			2,468			(698	)		(28.3	)
Other operating income *		(944	)		(609	)		(335	)		54.9
Gross income		42,722			39,777			2,945			7.4
Operating expenses		(17,929	)		(16,962	)		(967	)		5.7
General administrative expenses		(16,413	)		(15,611	)		(801	)		5.1
Personnel		(8,722	)		(7,732	)		(990	)		12.8
Other general administrative expenses		(7,691	)		(7,880	)		189			(2.4	)
Depreciation and amortisation		(1,516	)		(1,351	)		(166	)		12.3
Net operating income		24,793			22,815			1,978			8.7
Net loan-loss provisions		(11,467	)		(10,291	)		(1,175	)		11.4
Other income		110			44			67			152.7
Profit before taxes		13,437			12,567			869			6.9
Tax on profit		(2,920	)		(2,461	)		(459	)		18.6
Profit from continuing operations		10,517			10,106			410			4.1
Net profit from discontinued operations		—			—			—			—
Consolidated profit		10,517			10,106			410			4.1
Minority interests		2,626			2,397			228			9.5
Attributable profit to the Group		7,891			7,709			182			2.4

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


					Variation
	30.09.15		30.09.14		Amount			%
Balance sheet
Customer loans **		535,103		444,689		90,414			20.3
Trading portfolio (w/o loans)		350,088		211,949		138,139			65.2
Available-for-sale financial assets		93,721		69,645		24,076			34.6
Due from credit institutions **		146,957		163,276		(16,318	)		(10.0	)
Intangible assets and property and equipment		6,886		6,663		224			3.4
Other assets		108,480		92,864		15,616			16.8
Total assets/liabilities & shareholders’ equity		1,241,236		989,085		252,150			25.5
Customer deposits **		503,652		487,683		15,969			3.3
Marketable debt securities **		77,205		64,439		12,766			19.8
Subordinated debt **		22,000		17,456		4,544			26.0
Insurance liabilities		—		—		—			—
Due to credit institutions **		223,811		112,465		111,345			99.0
Other liabilities		318,821		226,100		92,720			41.0
Stockholders’ equity ***		95,747		80,941		14,805			18.3
Other managed and marketed customer funds		220,719		210,870		9,849			4.7
Mutual funds		220,719		210,870		9,849			4.7
Pension funds		—		—		—			—
Managed portfolios		—		—		—			—
Managed and marketed customer funds		823,577		780,448		43,128			5.5

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

LOGO

Mexico

Million pesos


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		9,042			9,237			9,552			9,906			10,041			10,504			10,939
Net fees		3,427			3,341			3,319			3,401			3,259			3,613			3,541
Gains (losses) on financial transactions		466			1,095			906			364			718			564			487
Other operating income *		(223	)		(125	)		(261	)		(180	)		(249	)		(232	)		(463	)
Gross income		12,712			13,548			13,516			13,491			13,769			14,450			14,503
Operating expenses		(5,659	)		(5,656	)		(5,647	)		(5,667	)		(5,973	)		(5,978	)		(5,978	)
General administrative expenses		(5,186	)		(5,230	)		(5,195	)		(5,206	)		(5,467	)		(5,444	)		(5,501	)
Personnel		(2,511	)		(2,568	)		(2,654	)		(2,735	)		(2,819	)		(2,934	)		(2,969	)
Other general administrative expenses		(2,675	)		(2,663	)		(2,542	)		(2,471	)		(2,648	)		(2,510	)		(2,533	)
Depreciation and amortisation		(473	)		(426	)		(451	)		(461	)		(506	)		(533	)		(476	)
Net operating income		7,053			7,892			7,870			7,824			7,795			8,472			8,526
Net loan-loss provisions		(3,237	)		(3,401	)		(3,654	)		(3,058	)		(3,545	)		(3,791	)		(4,131	)
Other income		(28	)		(34	)		106			(13	)		130			(36	)		17
Profit before taxes		3,788			4,458			4,322			4,753			4,380			4,644			4,412
Tax on profit		(785	)		(897	)		(779	)		(794	)		(999	)		(1,039	)		(882	)
Profit from continuing operations		3,003			3,561			3,542			3,959			3,381			3,606			3,530
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		3,003			3,561			3,542			3,959			3,381			3,606			3,530
Minority interests		724			813			860			968			807			902			917
Attributable profit to the Group		2,279			2,748			2,682			2,992			2,574			2,704			2,613

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


	31.03.14		30.06.14		30.09.14		31.12.14		31.03.15		30.06.15		30.09.15
Balance sheet
Customer loans **		403,181		434,237		444,689		462,295		480,702		501,609		535,103
Trading portfolio (w/o loans)		203,446		205,512		211,949		181,988		275,379		269,846		350,088
Available-for-sale financial assets		62,606		69,858		69,645		82,629		67,130		69,887		93,721
Due from credit institutions **		150,376		123,543		163,276		126,112		139,476		124,233		146,957
Intangible assets and property and equipment		7,120		7,023		6,663		7,864		8,147		8,071		6,886
Other assets		101,544		97,312		92,864		99,082		104,415		101,354		108,480
Total assets/liabilities & shareholders’ equity		928,273		937,484		989,085		959,970		1,075,250		1,075,000		1,241,236
Customer deposits **		461,025		439,325		487,683		511,501		511,307		504,032		503,652
Marketable debt securities **		44,957		67,634		64,439		58,350		74,174		82,758		77,205
Subordinated debt **		17,043		17,192		17,456		19,446		19,849		20,706		22,000
Insurance liabilities		—		—		—		—		—		—		—
Due to credit institutions **		106,914		139,354		112,465		110,885		164,927		148,567		223,811
Other liabilities		216,355		191,277		226,100		175,028		224,700		233,697		318,821
Stockholders’ equity ***		81,978		82,703		80,941		84,759		80,293		85,240		95,747
Other managed and marketed customer funds		198,447		207,656		210,870		205,892		218,327		220,166		220,719
Mutual funds		198,447		207,656		210,870		205,892		218,327		220,166		220,719
Pension funds		—		—		—		—		—		—		—
Managed portfolios		—		—		—		—		—		—		—
Managed and marketed customer funds		721,473		731,806		780,448		795,189		823,657		827,662		823,577

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

LOGO

Chile

EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		1,356			1,243			113			9.1
Net fees		275			241			34			14.1
Gains (losses) on financial transactions		151			87			64			73.1
Other operating income *		10			15			(5	)		(31.9	)
Gross income		1,792			1,586			206			13.0
Operating expenses		(743	)		(637	)		(106	)		16.6
General administrative expenses		(687	)		(590	)		(97	)		16.5
Personnel		(415	)		(348	)		(67	)		19.3
Other general administrative expenses		(272	)		(242	)		(30	)		12.5
Depreciation and amortisation		(56	)		(47	)		(9	)		18.3
Net operating income		1,049			949			100			10.6
Net loan-loss provisions		(410	)		(365	)		(45	)		12.5
Other income		(1	)		(7	)		6			(87.0	)
Profit before taxes		638			577			60			10.5
Tax on profit		(96	)		(83	)		(14	)		16.4
Profit from continuing operations		541			494			47			9.5
Net profit from discontinued operations		—			—			—			—
Consolidated profit		541			494			47			9.5
Minority interests		164			156			8			5.0
Attributable profit to the Group		378			339			39			11.5
(*).- Including dividends, income from equity-accounted method and other operating income/expenses
							Variation
	30.09.15			30.09.14			Amount			%
Balance sheet
Customer loans **		31,874			29,057			2,816			9.7
Trading portfolio (w/o loans)		3,665			2,723			942			34.6
Available-for-sale financial assets		2,449			2,192			257			11.7
Due from credit institutions **		4,489			3,630			859			23.7
Intangible assets and property and equipment		343			295			47			15.9
Other assets		2,658			2,749			(91	)		(3.3	)
Total assets/liabilities & shareholders’ equity		45,477			40,647			4,830			11.9
Customer deposits **		23,211			21,294			1,917			9.0
Marketable debt securities **		6,743			6,047			696			11.5
Subordinated debt **		942			1,152			(210	)		(18.2	)
Insurance liabilities		—			—			—			—
Due to credit institutions **		5,878			5,138			741			14.4
Other liabilities		5,843			4,497			1,345			29.9
Stockholders’ equity ***		2,860			2,519			342			13.6
Other managed and marketed customer funds		7,307			6,777			530			7.8
Mutual funds		5,463			5,194			268			5.2
Pension funds		—			—			—			—
Managed portfolios		1,845			1,583			262			16.6
Managed and marketed customer funds		38,204			35,270			2,933			8.3

(**).- Including all on-balance sheet balances for this item
(***).- Capital + reserves + profit + valuation adjustments

Ratios (%) and other data
ROE		16.97			18.11			(1.14 p.	)
Efficiency ratio (with amortisations)		41.5			40.2			1.3 p.
NPL ratio		5.60			5.98			(0.38 p.	)
NPL coverage		52.8			52.3			0.5 p.
Number of employees		12,334			12,135			199			1.6
Number of branches		476			476			—			—

LOGO

Chile

EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		408			447			387			491			398			498			460
Net fees		81			78			82			86			87			96			93
Gains (losses) on financial transactions		39			19			29			28			65			35			51
Other operating income *		5			5			5			3			4			4			2
Gross income		532			550			504			608			553			633			606
Operating expenses		(204	)		(213	)		(220	)		(229	)		(238	)		(263	)		(243	)
General administrative expenses		(185	)		(202	)		(203	)		(214	)		(219	)		(244	)		(224	)
Personnel		(106	)		(121	)		(121	)		(129	)		(128	)		(149	)		(138	)
Other general administrative expenses		(79	)		(81	)		(82	)		(85	)		(91	)		(95	)		(86	)
Depreciation and amortisation		(19	)		(11	)		(17	)		(15	)		(18	)		(19	)		(18	)
Net operating income		328			336			284			379			316			370			364
Net loan-loss provisions		(116	)		(118	)		(131	)		(156	)		(132	)		(126	)		(153	)
Other income		(7	)		(3	)		3			(18	)		6			(3	)		(4	)
Profit before taxes		206			216			156			205			190			241			207
Tax on profit		(32	)		(27	)		(23	)		29			(43	)		(28	)		(25	)
Profit from continuing operations		173			189			132			234			147			212			182
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		173			189			132			234			147			212			182
Minority interests		53			59			43			74			41			65			57
Attributable profit to the Group		120			129			89			160			106			147			125

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


	31.03.14		30.06.14		30.09.14		31.12.14		31.03.15		30.06.15		30.09.15
Balance sheet
Customer loans **		27,993		28,701		29,057		30,550		34,510		33,733		31,874
Trading portfolio (w/o loans)		1,764		2,106		2,723		3,075		2,940		2,918		3,665
Available-for-sale financial assets		2,454		1,796		2,192		2,274		2,290		2,831		2,449
Due from credit institutions **		2,922		2,851		3,630		3,837		4,599		4,020		4,489
Intangible assets and property and equipment		313		281		295		347		382		371		343
Other assets		2,562		2,091		2,749		2,680		3,564		2,621		2,658
Total assets/liabilities & shareholders’ equity		38,009		37,826		40,647		42,763		48,285		46,495		45,477
Customer deposits **		20,436		19,929		21,294		23,352		26,499		24,203		23,211
Marketable debt securities **		5,399		6,146		6,047		6,650		7,404		7,441		6,743
Subordinated debt **		1,110		948		1,152		985		1,070		1,023		942
Insurance liabilities		—		—		—		—		—		—		—
Due to credit institutions **		4,550		4,648		5,138		4,393		4,407		5,801		5,878
Other liabilities		3,902		3,703		4,497		4,437		5,712		5,128		5,843
Stockholders’ equity ***		2,612		2,452		2,519		2,946		3,193		2,898		2,860
Other managed and marketed customer funds		5,864		6,346		6,777		7,256		7,871		7,792		7,307
Mutual funds		4,427		4,850		5,194		5,564		5,793		5,786		5,463
Pension funds		—		—		—		—		—		—		—
Managed portfolios		1,437		1,496		1,583		1,693		2,078		2,006		1,845
Managed and marketed customer funds		32,808		33,368		35,270		38,242		42,845		40,459		38,204

(**).- Including all on-balance sheet balances for this item
(***).- Capital + reserves + profit + valuation adjustments

Other information
NPL ratio		5.99		5.94		5.98		5.97		5.88		5.73		5.60
NPL coverage		50.7		51.7		52.3		52.4		52.0		51.6		52.8
Cost of credit		1.82		1.76		1.71		1.75		1.74		1.68		1.68

LOGO

Chile

Constant EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		1,356			1,328			28			2.1
Net fees		275			258			18			6.8
Gains (losses) on financial transactions		151			93			58			62.0
Other operating income *		10			16			(6	)		(36.3	)
Gross income		1,792			1,695			98			5.8
Operating expenses		(743	)		(681	)		(62	)		9.2
General administrative expenses		(687	)		(630	)		(57	)		9.0
Personnel		(415	)		(372	)		(43	)		11.7
Other general administrative expenses		(272	)		(258	)		(14	)		5.3
Depreciation and amortisation		(56	)		(51	)		(5	)		10.7
Net operating income		1,049			1,014			35			3.5
Net loan-loss provisions		(410	)		(390	)		(21	)		5.3
Other income		(1	)		(7	)		6			(87.8	)
Profit before taxes		638			617			21			3.4
Tax on profit		(96	)		(89	)		(8	)		8.9
Profit from continuing operations		541			528			13			2.5
Net profit from discontinued operations		—			—			—			—
Consolidated profit		541			528			13			2.5
Minority interests		164			166			(3	)		(1.7	)
Attributable profit to the Group		378			362			16			4.4

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


					Variation
	30.09.15		30.09.14		Amount			%
Balance sheet
Customer loans **		31,874		27,982		3,892			13.9
Trading portfolio (w/o loans)		3,665		2,622		1,042			39.7
Available-for-sale financial assets		2,449		2,111		338			16.0
Due from credit institutions **		4,489		3,496		994			28.4
Intangible assets and property and equipment		343		285		58			20.4
Other assets		2,658		2,647		11			0.4
Total assets/liabilities & shareholders’ equity		45,477		39,142		6,335			16.2
Customer deposits **		23,211		20,506		2,705			13.2
Marketable debt securities **		6,743		5,823		920			15.8
Subordinated debt **		942		1,110		(168	)		(15.1	)
Insurance liabilities		—		—		—			—
Due to credit institutions **		5,878		4,947		931			18.8
Other liabilities		5,843		4,331		1,512			34.9
Stockholders’ equity ***		2,860		2,425		435			17.9
Other managed and marketed customer funds		7,307		6,526		781			12.0
Mutual funds		5,463		5,002		461			9.2
Pension funds		—		—		—			—
Managed portfolios		1,845		1,524		321			21.0
Managed and marketed customer funds		38,204		33,965		4,239			12.5

(**).- Including all on-balance sheet balances for this item
(***).- Capital + reserves + profit + valuation adjustments

LOGO

Chile

Constant EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		433			478			417			517			393			478			484
Net fees		86			83			89			91			86			92			98
Gains (losses) on financial transactions		41			21			31			29			64			33			53
Other operating income *		5			6			5			3			4			4			2
Gross income		565			587			542			639			547			608			638
Operating expenses		(216	)		(228	)		(237	)		(240	)		(235	)		(253	)		(256	)
General administrative expenses		(196	)		(216	)		(218	)		(225	)		(217	)		(234	)		(237	)
Personnel		(113	)		(130	)		(130	)		(135	)		(126	)		(143	)		(146	)
Other general administrative expenses		(84	)		(86	)		(88	)		(89	)		(90	)		(91	)		(91	)
Depreciation and amortisation		(20	)		(12	)		(19	)		(16	)		(18	)		(18	)		(19	)
Net operating income		349			359			305			398			312			355			382
Net loan-loss provisions		(123	)		(126	)		(141	)		(164	)		(130	)		(121	)		(159	)
Other income		(7	)		(3	)		3			(19	)		6			(3	)		(4	)
Profit before taxes		218			231			168			216			188			232			218
Tax on profit		(34	)		(29	)		(25	)		31			(43	)		(27	)		(27	)
Profit from continuing operations		184			201			143			246			145			205			191
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		184			201			143			246			145			205			191
Minority interests		56			63			47			78			41			63			60
Attributable profit to the Group		128			138			96			168			105			142			131

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


	31.03.14		30.06.14		30.09.14		31.12.14		31.03.15		30.06.15		30.09.15
Balance sheet
Customer loans **		27,204		27,574		27,982		28,699		29,717		30,721		31,874
Trading portfolio (w/o loans)		1,715		2,023		2,622		2,889		2,532		2,657		3,665
Available-for-sale financial assets		2,384		1,726		2,111		2,136		1,972		2,578		2,449
Due from credit institutions **		2,840		2,739		3,496		3,604		3,961		3,661		4,489
Intangible assets and property and equipment		304		270		285		326		329		338		343
Other assets		2,490		2,008		2,647		2,518		3,069		2,387		2,658
Total assets/liabilities & shareholders’ equity		36,937		36,340		39,142		40,172		41,580		42,343		45,477
Customer deposits **		19,859		19,146		20,506		21,937		22,819		22,041		23,211
Marketable debt securities **		5,246		5,904		5,823		6,247		6,376		6,777		6,743
Subordinated debt **		1,079		911		1,110		925		922		932		942
Insurance liabilities		—		—		—		—		—		—		—
Due to credit institutions **		4,422		4,466		4,947		4,127		3,795		5,283		5,878
Other liabilities		3,792		3,557		4,331		4,169		4,919		4,670		5,843
Stockholders’ equity ***		2,539		2,356		2,425		2,768		2,749		2,639		2,860
Other managed and marketed customer funds		5,698		6,096		6,526		6,816		6,778		7,097		7,307
Mutual funds		4,302		4,659		5,002		5,226		4,989		5,270		5,463
Pension funds		—		—		—		—		—		—		—
Managed portfolios		1,396		1,437		1,524		1,590		1,789		1,827		1,845
Managed and marketed customer funds		31,883		32,058		33,965		35,925		36,894		36,846		38,204

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

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Chile

Ch$ million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		964,713			944,599			20,113			2.1
Net fees		195,933			183,430			12,502			6.8
Gains (losses) on financial transactions		107,325			66,246			41,080			62.0
Other operating income *		7,151			11,223			(4,072	)		(36.3	)
Gross income		1,275,122			1,205,498			69,624			5.8
Operating expenses		(528,888	)		(484,461	)		(44,427	)		9.2
General administrative expenses		(489,045	)		(448,471	)		(40,574	)		9.0
Personnel		(295,494	)		(264,630	)		(30,864	)		11.7
Other general administrative expenses		(193,551	)		(183,841	)		(9,710	)		5.3
Depreciation and amortisation		(39,843	)		(35,990	)		(3,853	)		10.7
Net operating income		746,234			721,037			25,197			3.5
Net loan-loss provisions		(291,899	)		(277,287	)		(14,613	)		5.3
Other income		(606	)		(4,983	)		4,377			(87.8	)
Profit before taxes		453,729			438,768			14,961			3.4
Tax on profit		(68,628	)		(63,000	)		(5,628	)		8.9
Profit from continuing operations		385,101			375,768			9,333			2.5
Net profit from discontinued operations		—			—			—			—
Consolidated profit		385,101			375,768			9,333			2.5
Minority interests		116,374			118,398			(2,024	)		(1.7	)
Attributable profit to the Group		268,727			257,369			11,357			4.4
(*).- Including dividends, income from equity-accounted method and other operating income/expenses
							Variation
	30.09.15			30.09.14			Amount			%
Balance sheet
Customer loans **		25,017,101			21,962,215			3,054,886			13.9
Trading portfolio (w/o loans)		2,876,402			2,058,276			818,127			39.7
Available-for-sale financial assets		1,922,237			1,656,941			265,296			16.0
Due from credit institutions **		3,523,682			2,743,727			779,955			28.4
Intangible assets and property and equipment		268,891			223,326			45,565			20.4
Other assets		2,086,139			2,077,558			8,580			0.4
Total assets/liabilities & shareholders’ equity		35,694,451			30,722,042			4,972,409			16.2
Customer deposits **		18,218,198			16,094,833			2,123,365			13.2
Marketable debt securities **		5,292,185			4,570,224			721,961			15.8
Subordinated debt **		739,433			870,952			(131,519	)		(15.1	)
Insurance liabilities		—			—			—			—
Due to credit institutions **		4,613,855			3,883,166			730,688			18.8
Other liabilities		4,585,752			3,399,220			1,186,532			34.9
Stockholders’ equity ***		2,245,028			1,903,646			341,383			17.9
Other managed and marketed customer funds		5,735,494			5,122,202			613,292			12.0
Mutual funds		4,287,513			3,925,929			361,584			9.2
Pension funds		—			—			—			—
Managed portfolios		1,447,981			1,196,273			251,708			21.0
Managed and marketed customer funds		29,985,311			26,658,212			3,327,099			12.5

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

LOGO

Chile

Ch$ million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		308,334			339,971			296,294			367,491			279,722			340,367			344,624
Net fees		61,169			59,211			63,049			64,460			60,830			65,361			69,741
Gains (losses) on financial transactions		29,113			14,750			22,383			20,548			45,671			23,778			37,877
Other operating income *		3,411			3,946			3,866			2,051			2,611			2,980			1,560
Gross income		402,028			417,878			385,592			454,549			388,834			432,486			453,802
Operating expenses		(153,985	)		(162,187	)		(168,289	)		(171,079	)		(166,957	)		(179,795	)		(182,136	)
General administrative expenses		(139,725	)		(153,687	)		(155,058	)		(159,752	)		(154,015	)		(166,696	)		(168,334	)
Personnel		(80,193	)		(92,216	)		(92,221	)		(96,241	)		(89,753	)		(102,044	)		(103,697	)
Other general administrative expenses		(59,533	)		(61,471	)		(62,837	)		(63,511	)		(64,262	)		(64,652	)		(64,637	)
Depreciation and amortisation		(14,259	)		(8,500	)		(13,231	)		(11,327	)		(12,942	)		(13,099	)		(13,802	)
Net operating income		248,043			255,691			217,303			283,469			221,876			252,691			271,667
Net loan-loss provisions		(87,661	)		(89,606	)		(100,021	)		(116,599	)		(92,461	)		(85,988	)		(113,450	)
Other income		(5,126	)		(1,977	)		2,120			(13,438	)		4,340			(2,008	)		(2,938	)
Profit before taxes		155,256			164,109			119,402			153,433			133,755			164,694			155,280
Tax on profit		(24,257	)		(20,834	)		(17,909	)		21,863			(30,251	)		(19,172	)		(19,205	)
Profit from continuing operations		130,999			143,275			101,494			175,296			103,504			145,523			136,074
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		130,999			143,275			101,494			175,296			103,504			145,523			136,074
Minority interests		40,073			45,172			33,154			55,573			29,047			44,798			42,529
Attributable profit to the Group		90,926			98,103			68,340			119,723			74,457			100,724			93,545

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


	31.03.14		30.06.14		30.09.14		31.12.14		31.03.15		30.06.15		30.09.15
Balance sheet
Customer loans **		21,351,994		21,642,312		21,962,215		22,525,228		23,324,691		24,112,256		25,017,101
Trading portfolio (w/o loans)		1,345,769		1,587,678		2,058,276		2,267,402		1,986,953		2,085,549		2,876,402
Available-for-sale financial assets		1,871,483		1,354,485		1,656,941		1,676,518		1,547,496		2,023,435		1,922,237
Due from credit institutions **		2,228,999		2,149,940		2,743,727		2,829,090		3,108,653		2,873,800		3,523,682
Intangible assets and property and equipment		238,548		212,189		223,326		255,870		258,454		265,481		268,891
Other assets		1,954,301		1,576,360		2,077,558		1,975,977		2,408,832		1,873,698		2,086,139
Total assets/liabilities & shareholders’ equity		28,991,095		28,522,964		30,722,042		31,530,086		32,635,077		33,234,218		35,694,451
Customer deposits **		15,587,270		15,027,577		16,094,833		17,217,818		17,910,204		17,299,950		18,218,198
Marketable debt securities **		4,117,862		4,634,207		4,570,224		4,902,966		5,004,370		5,318,871		5,292,185
Subordinated debt **		846,837		714,810		870,952		725,916		723,272		731,276		739,433
Insurance liabilities		—		—		—		—		—		—		—
Due to credit institutions **		3,470,515		3,504,985		3,883,166		3,239,089		2,978,870		4,146,852		4,613,855
Other liabilities		2,975,939		2,792,143		3,399,220		3,271,869		3,860,523		3,665,635		4,585,752
Stockholders’ equity ***		1,992,672		1,849,241		1,903,646		2,172,428		2,157,838		2,071,635		2,245,028
Other managed and marketed customer funds		4,472,554		4,785,008		5,122,202		5,350,036		5,319,970		5,569,920		5,735,494
Mutual funds		3,376,825		3,656,974		3,925,929		4,102,113		3,915,566		4,136,125		4,287,513
Pension funds		—		—		—		—		—		—		—
Managed portfolios		1,095,730		1,128,033		1,196,273		1,247,923		1,404,403		1,433,795		1,447,981
Managed and marketed customer funds		25,024,523		25,161,602		26,658,212		28,196,736		28,957,816		28,920,017		29,985,311

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

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USA

EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		4,562			3,533			1,029			29.1
Net fees		799			612			188			30.7
Gains (losses) on financial transactions		193			135			58			43.1
Other operating income *		265			89			176			197.0
Gross income		5,820			4,369			1,451			33.2
Operating expenses		(2,197	)		(1,618	)		(580	)		35.8
General administrative expenses		(2,007	)		(1,470	)		(537	)		36.5
Personnel		(1,130	)		(821	)		(308	)		37.5
Other general administrative expenses		(877	)		(649	)		(228	)		35.2
Depreciation and amortisation		(191	)		(148	)		(43	)		29.1
Net operating income		3,622			2,751			871			31.7
Net loan-loss provisions		(2,144	)		(1,656	)		(488	)		29.4
Other income		(97	)		(19	)		(78	)		403.9
Profit before taxes		1,382			1,076			306			28.4
Tax on profit		(444	)		(320	)		(124	)		38.6
Profit from continuing operations		938			755			182			24.1
Net profit from discontinued operations		—			—			—			—
Consolidated profit		938			755			182			24.1
Minority interests		278			159			119			75.0
Attributable profit to the Group		660			597			63			10.6

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


					Variation
	30.09.15		30.09.14		Amount			%
Balance sheet
Customer loans **		80,789		66,782		14,007			21.0
Trading portfolio (w/o loans)		1,248		3,966		(2,718	)		(68.5	)
Available-for-sale financial assets		18,446		11,668		6,778			58.1
Due from credit institutions **		4,305		3,368		937			27.8
Intangible assets and property and equipment		8,585		6,009		2,576			42.9
Other assets		12,065		8,583		3,483			40.6
Total assets/liabilities & shareholders’ equity		125,438		100,375		25,062			25.0
Customer deposits **		58,970		49,556		9,414			19.0
Marketable debt securities **		21,552		15,810		5,742			36.3
Subordinated debt **		891		778		113			14.5
Insurance liabilities		—		—		—			—
Due to credit institutions **		25,138		13,813		11,326			82.0
Other liabilities		7,571		9,099		(1,528	)		(16.8	)
Stockholders’ equity ***		11,315		11,320		(5	)		(0.0	)
Other managed and marketed customer funds		19,980		14,728		5,253			35.7
Mutual funds		7,317		3,402		3,916			115.1
Pension funds		—		—		—			—
Managed portfolios		12,663		11,326		1,337			11.8
Managed and marketed customer funds		101,394		80,872		20,522			25.4

(**).- Including all on-balance sheet balances for this item
(***).- Capital + reserves + profit + valuation adjustments

Ratios (%) and other data
ROE		7.88		7.32		0.56 p.
Efficiency ratio (with amortisations)		37.8		37.0		0.7 p.
NPL ratio		2.20		2.57		(0.37 p.	)
NPL coverage		218.3		183.7		34.6 p.
Number of employees		17,592		16,562		1,030			6.2
Number of branches		783		812		(29	)		(3.6	)

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USA

EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		1,137			1,174			1,222			1,256			1,463			1,549			1,550
Net fees		200			206			206			218			262			271			266
Gains (losses) on financial transactions		40			26			69			70			51			103			39
Other operating income *		16			32			41			67			92			77			96
Gross income		1,393			1,438			1,538			1,610			1,868			2,000			1,952
Operating expenses		(527	)		(524	)		(566	)		(622	)		(696	)		(729	)		(772	)
General administrative expenses		(472	)		(484	)		(514	)		(569	)		(635	)		(663	)		(708	)
Personnel		(262	)		(274	)		(285	)		(320	)		(363	)		(379	)		(388	)
Other general administrative expenses		(210	)		(209	)		(229	)		(249	)		(272	)		(284	)		(320	)
Depreciation and amortisation		(55	)		(41	)		(52	)		(52	)		(60	)		(66	)		(64	)
Net operating income		866			914			971			989			1,172			1,271			1,180
Net loan-loss provisions		(546	)		(499	)		(611	)		(577	)		(639	)		(754	)		(750	)
Other income		(2	)		(3	)		(14	)		32			(18	)		(42	)		(37	)
Profit before taxes		317			412			347			444			514			475			393
Tax on profit		(93	)		(138	)		(89	)		(119	)		(158	)		(157	)		(129	)
Profit from continuing operations		224			275			257			325			357			317			264
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		224			275			257			325			357			317			264
Minority interests		44			65			49			61			100			100			78
Attributable profit to the Group		180			209			208			265			257			217			186

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


	31.03.14		30.06.14		30.09.14		31.12.14		31.03.15		30.06.15		30.09.15
Balance sheet
Customer loans **		61,483		62,756		66,782		70,420		82,418		79,652		80,789
Trading portfolio (w/o loans)		2,682		3,149		3,966		5,043		1,524		1,676		1,248
Available-for-sale financial assets		9,004		8,262		11,668		12,737		16,549		16,783		18,446
Due from credit institutions **		3,142		3,513		3,368		3,460		4,663		4,969		4,305
Intangible assets and property and equipment		3,275		4,635		6,009		6,905		7,975		7,899		8,585
Other assets		7,583		9,040		8,583		9,469		9,660		10,086		12,065
Total assets/liabilities & shareholders’ equity		87,170		91,354		100,375		108,034		122,788		121,064		125,438
Customer deposits **		44,041		44,493		49,556		51,304		60,162		58,133		58,970
Marketable debt securities **		12,436		14,373		15,810		16,000		19,221		20,942		21,552
Subordinated debt **		703		701		778		796		918		872		891
Insurance liabilities		—		—		—		—		—		—		—
Due to credit institutions **		12,150		13,119		13,813		17,760		23,770		21,584		25,138
Other liabilities		6,796		7,505		9,099		10,543		7,605		8,397		7,571
Stockholders’ equity ***		11,044		11,164		11,320		11,632		11,113		11,136		11,315
Other managed and marketed customer funds		11,944		12,675		14,728		15,729		22,613		20,942		19,980
Mutual funds		2,482		2,599		3,402		3,621		8,536		7,707		7,317
Pension funds		—		—		—		—		—		—		—
Managed portfolios		9,462		10,076		11,326		12,107		14,077		13,235		12,663
Managed and marketed customer funds		69,123		72,242		80,872		83,828		102,914		100,889		101,394

(**).- Including all on-balance sheet balances for this item
(***).- Capital + reserves + profit + valuation adjustments

Other information
NPL ratio		2.78		2.79		2.57		2.42		2.20		2.20		2.20
NPL coverage		163.2		165.6		183.7		193.6		211.5		224.2		218.3
Cost of credit		2.82		3.03		3.27		3.31		3.25		3.39		3.36

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USA

Constant EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		4,562			4,297			265			6.2
Net fees		799			744			55			7.4
Gains (losses) on financial transactions		193			164			29			17.6
Other operating income *		265			108			156			144.1
Gross income		5,820			5,314			505			9.5
Operating expenses		(2,197	)		(1,968	)		(230	)		11.7
General administrative expenses		(2,007	)		(1,788	)		(219	)		12.2
Personnel		(1,130	)		(999	)		(131	)		13.1
Other general administrative expenses		(877	)		(789	)		(88	)		11.1
Depreciation and amortisation		(191	)		(180	)		(11	)		6.1
Net operating income		3,622			3,346			276			8.2
Net loan-loss provisions		(2,144	)		(2,014	)		(129	)		6.4
Other income		(97	)		(23	)		(73	)		314.3
Profit before taxes		1,382			1,309			73			5.6
Tax on profit		(444	)		(390	)		(54	)		13.9
Profit from continuing operations		938			919			19			2.0
Net profit from discontinued operations		—			—			—			—
Consolidated profit		938			919			19			2.0
Minority interests		278			193			85			43.9
Attributable profit to the Group		660			726			(66	)		(9.1	)

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


					Variation
	30.09.15		30.09.14		Amount			%
Balance sheet
Customer loans **		80,789		75,008		5,781			7.7
Trading portfolio (w/o loans)		1,248		4,454		(3,206	)		(72.0	)
Available-for-sale financial assets		18,446		13,105		5,341			40.8
Due from credit institutions **		4,305		3,783		522			13.8
Intangible assets and property and equipment		8,585		6,750		1,835			27.2
Other assets		12,065		9,640		2,425			25.2
Total assets/liabilities & shareholders’ equity		125,438		112,740		12,698			11.3
Customer deposits **		58,970		55,660		3,310			5.9
Marketable debt securities **		21,552		17,758		3,794			21.4
Subordinated debt **		891		874		17			2.0
Insurance liabilities		—		—		—			—
Due to credit institutions **		25,138		15,514		9,624			62.0
Other liabilities		7,571		10,219		(2,648	)		(25.9	)
Stockholders’ equity ***		11,315		12,714		(1,399	)		(11.0	)
Other managed and marketed customer funds		19,980		16,542		3,439			20.8
Mutual funds		7,317		3,821		3,497			91.5
Pension funds		—		—		—			—
Managed portfolios		12,663		12,721		(58	)		(0.5	)
Managed and marketed customer funds		101,394		90,834		10,560			11.6

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

LOGO

USA

Constant EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		1,398			1,446			1,453			1,406			1,478			1,537			1,547
Net fees		245			254			245			244			264			269			266
Gains (losses) on financial transactions		50			32			83			79			52			103			39
Other operating income *		20			39			49			77			92			76			96
Gross income		1,713			1,771			1,830			1,807			1,887			1,985			1,948
Operating expenses		(648	)		(646	)		(674	)		(699	)		(703	)		(724	)		(771	)
General administrative expenses		(581	)		(596	)		(612	)		(641	)		(642	)		(658	)		(707	)
Personnel		(322	)		(338	)		(339	)		(360	)		(367	)		(376	)		(387	)
Other general administrative expenses		(259	)		(258	)		(273	)		(281	)		(275	)		(282	)		(320	)
Depreciation and amortisation		(67	)		(50	)		(62	)		(58	)		(61	)		(66	)		(64	)
Net operating income		1,065			1,126			1,156			1,107			1,184			1,261			1,178
Net loan-loss provisions		(672	)		(614	)		(728	)		(645	)		(646	)		(749	)		(749	)
Other income		(3	)		(3	)		(17	)		39			(19	)		(41	)		(37	)
Profit before taxes		390			508			411			502			520			470			392
Tax on profit		(115	)		(170	)		(105	)		(134	)		(159	)		(156	)		(129	)
Profit from continuing operations		275			338			306			368			360			314			263
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		275			338			306			368			360			314			263
Minority interests		54			81			58			68			101			100			78
Attributable profit to the Group		221			258			247			300			260			215			185

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


	31.03.14		30.06.14		30.09.14		31.12.14		31.03.15		30.06.15		30.09.15
Balance sheet
Customer loans **		75,669		76,508		75,008		76,316		79,151		79,552		80,789
Trading portfolio (w/o loans)		3,301		3,839		4,454		5,465		1,464		1,674		1,248
Available-for-sale financial assets		11,082		10,073		13,105		13,803		15,893		16,762		18,446
Due from credit institutions **		3,867		4,282		3,783		3,750		4,478		4,962		4,305
Intangible assets and property and equipment		4,031		5,651		6,750		7,483		7,659		7,889		8,585
Other assets		9,333		11,021		9,640		10,262		9,277		10,073		12,065
Total assets/liabilities & shareholders’ equity		107,283		111,373		112,740		117,079		117,922		120,912		125,438
Customer deposits **		54,203		54,243		55,660		55,599		57,777		58,060		58,970
Marketable debt securities **		15,305		17,522		17,758		17,339		18,459		20,916		21,552
Subordinated debt **		865		854		874		863		882		871		891
Insurance liabilities		—		—		—		—		—		—		—
Due to credit institutions **		14,953		15,994		15,514		19,247		22,828		21,557		25,138
Other liabilities		8,364		9,149		10,219		11,426		7,303		8,386		7,571
Stockholders’ equity ***		13,593		13,610		12,714		12,605		10,673		11,122		11,315
Other managed and marketed customer funds		14,700		15,452		16,542		17,046		21,717		20,916		19,980
Mutual funds		3,055		3,169		3,821		3,925		8,197		7,697		7,317
Pension funds		—		—		—		—		—		—		—
Managed portfolios		11,645		12,284		12,721		13,121		13,519		13,218		12,663
Managed and marketed customer funds		85,073		88,072		90,834		90,847		98,835		100,762		101,394

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

LOGO

USA

US$ million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		5,080			4,785			295			6.2
Net fees		890			829			61			7.4
Gains (losses) on financial transactions		215			183			32			17.6
Other operating income *		295			121			174			144.1
Gross income		6,480			5,917			563			9.5
Operating expenses		(2,447	)		(2,191	)		(256	)		11.7
General administrative expenses		(2,235	)		(1,991	)		(243	)		12.2
Personnel		(1,258	)		(1,113	)		(145	)		13.1
Other general administrative expenses		(976	)		(879	)		(98	)		11.1
Depreciation and amortisation		(212	)		(200	)		(12	)		6.1
Net operating income		4,033			3,726			307			8.2
Net loan-loss provisions		(2,387	)		(2,243	)		(144	)		6.4
Other income		(108	)		(26	)		(82	)		314.3
Profit before taxes		1,539			1,457			81			5.6
Tax on profit		(494	)		(434	)		(60	)		13.9
Profit from continuing operations		1,044			1,023			21			2.0
Net profit from discontinued operations		—			—			—			—
Consolidated profit		1,044			1,023			21			2.0
Minority interests		309			215			94			43.9
Attributable profit to the Group		735			808			(73	)		(9.1	)

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


					Variation
	30.09.15		30.09.14		Amount			%
Balance sheet
Customer loans **		90,508		84,032		6,476			7.7
Trading portfolio (w/o loans)		1,398		4,990		(3,592	)		(72.0	)
Available-for-sale financial assets		20,665		14,682		5,983			40.8
Due from credit institutions **		4,822		4,238		585			13.8
Intangible assets and property and equipment		9,618		7,562		2,056			27.2
Other assets		13,517		10,800		2,717			25.2
Total assets/liabilities & shareholders’ equity		140,528		126,302		14,226			11.3
Customer deposits **		66,064		62,356		3,708			5.9
Marketable debt securities **		24,145		19,894		4,251			21.4
Subordinated debt **		998		979		19			2.0
Insurance liabilities		—		—		—			—
Due to credit institutions **		28,163		17,381		10,782			62.0
Other liabilities		8,482		11,449		(2,967	)		(25.9	)
Stockholders’ equity ***		12,676		14,244		(1,567	)		(11.0	)
Other managed and marketed customer funds		22,384		18,532		3,852			20.8
Mutual funds		8,198		4,280		3,917			91.5
Pension funds		—		—		—			—
Managed portfolios		14,186		14,251		(65	)		(0.5	)
Managed and marketed customer funds		113,591		101,761		11,830			11.6

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

LOGO

USA

US$ million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		1,557			1,610			1,618			1,566			1,646			1,711			1,723
Net fees		273			283			272			272			294			300			296
Gains (losses) on financial transactions		55			35			93			88			58			114			43
Other operating income *		22			44			55			86			103			85			107
Gross income		1,907			1,972			2,038			2,012			2,101			2,210			2,169
Operating expenses		(722	)		(719	)		(750	)		(779	)		(783	)		(806	)		(858	)
General administrative expenses		(647	)		(663	)		(681	)		(714	)		(715	)		(733	)		(787	)
Personnel		(359	)		(376	)		(378	)		(401	)		(408	)		(419	)		(431	)
Other general administrative expenses		(288	)		(287	)		(303	)		(312	)		(306	)		(314	)		(356	)
Depreciation and amortisation		(75	)		(56	)		(69	)		(65	)		(68	)		(73	)		(71	)
Net operating income		1,186			1,253			1,287			1,233			1,318			1,404			1,311
Net loan-loss provisions		(748	)		(684	)		(811	)		(718	)		(719	)		(834	)		(834	)
Other income		(3	)		(4	)		(19	)		43			(21	)		(46	)		(41	)
Profit before taxes		434			566			458			559			579			524			436
Tax on profit		(128	)		(189	)		(117	)		(149	)		(177	)		(174	)		(143	)
Profit from continuing operations		306			377			340			410			401			350			293
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		306			377			340			410			401			350			293
Minority interests		60			90			65			76			112			111			86
Attributable profit to the Group		246			287			275			334			289			239			206

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


	31.03.14		30.06.14		30.09.14		31.12.14		31.03.15		30.06.15		30.09.15
Balance sheet
Customer loans **		84,773		85,712		84,032		85,496		88,673		89,122		90,508
Trading portfolio (w/o loans)		3,698		4,300		4,990		6,122		1,640		1,875		1,398
Available-for-sale financial assets		12,415		11,284		14,682		15,464		17,805		18,778		20,665
Due from credit institutions **		4,333		4,798		4,238		4,201		5,017		5,559		4,822
Intangible assets and property and equipment		4,516		6,330		7,562		8,383		8,580		8,838		9,618
Other assets		10,456		12,347		10,800		11,497		10,393		11,285		13,517
Total assets/liabilities & shareholders’ equity		120,190		124,772		126,302		131,164		132,108		135,458		140,528
Customer deposits **		60,723		60,769		62,356		62,288		64,728		65,045		66,064
Marketable debt securities **		17,146		19,630		19,894		19,425		20,680		23,432		24,145
Subordinated debt **		969		957		979		967		988		976		998
Insurance liabilities		—		—		—		—		—		—		—
Due to credit institutions **		16,752		17,918		17,381		21,562		25,574		24,150		28,163
Other liabilities		9,370		10,250		11,449		12,800		8,182		9,395		8,482
Stockholders’ equity ***		15,228		15,248		14,244		14,122		11,957		12,461		12,676
Other managed and marketed customer funds		16,468		17,311		18,532		19,096		24,329		23,432		22,384
Mutual funds		3,422		3,550		4,280		4,397		9,184		8,623		8,198
Pension funds		—		—		—		—		—		—		—
Managed portfolios		13,046		13,761		14,251		14,699		15,146		14,808		14,186
Managed and marketed customer funds		95,307		98,667		101,761		101,776		110,725		112,884		113,591

(**).- Including all on-balance sheet balances for this item

(***).- Capital + reserves + profit + valuation adjustments

LOGO

Corporate Centre

EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		(491	)		(498	)		7			(1.4	)
Net fees		(8	)		(15	)		8			(51.1	)
Gains (losses) on financial transactions		34			537			(503	)		(93.7	)
Other operating income		1			(15	)		16			—
Dividends		63			25			38			148.9
Income from equity-accounted method		(37	)		(25	)		(12	)		48.8
Other operating income/expenses		(25	)		(16	)		(10	)		60.4
Gross income		(463	)		9			(472	)		—
Operating expenses		(435	)		(436	)		2			(0.4	)
Net operating income		(898	)		(428	)		(470	)		109.9
Net loan-loss provisions		0			0			0			42.7
Other income		(378	)		(128	)		(250	)		195.6
Ordinary profit before taxes		(1,275	)		(555	)		(720	)		129.7
Tax on profit		(72	)		(8	)		(63	)		756.1
Ordinary profit from continuing operations		(1,347	)		(564	)		(783	)		139.0
Net profit from discontinued operations		—			—			—			—
Ordinary consolidated profit		(1,347	)		(564	)		(783	)		139.0
Minority interests		28			(1	)		29			—
Ordinary attributable profit to the Group		(1,375	)		(563	)		(812	)		144.3


							Variation
	30.09.15			30.09.14			Amount			%
Balance sheet
Trading portfolio (w/o loans)		1,331			3,934			(2,602	)		(66.2	)
Available-for-sale financial assets		3,585			2,237			1,348			60.2
Goodwill		26,777			27,364			(586	)		(2.1	)
Capital assigned to Group areas		77,606			73,201			4,405			6.0
Other assets		35,635			34,761			874			2.5
Total assets/liabilities & shareholders’ equity		144,935			141,497			3,438			2.4
Customer deposits *		1,997			1,632			364			22.3
Marketable debt securities *		24,448			25,940			(1,492	)		(5.8	)
Subordinated debt		8,354			3,481			4,873			140.0
Other liabilities		25,139			34,996			(9,858	)		(28.2	)
Stockholders’ equity ***		84,998			75,447			9,551			12.7
Other managed and marketed customer funds		—			—			—			—
Mutual funds		—			—			—			—
Pension funds		—			—			—			—
Managed portfolios		—			—			—			—
Managed and marketed customer funds		34,798			31,053			3,745			12.1
().- Including all on-balance sheet balances for this item ().- Capital + reserves + profit + valuation adjustments
Resources
Number of employees		2,161			2,033			128			6.3

LOGO

Corporate Centre

EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		(233	)		(153	)		(112	)		(115	)		(220	)		(132	)		(139	)
Net fees		(7	)		(5	)		(4	)		(18	)		(2	)		(6	)		(0	)
Gains (losses) on financial transactions		214			85			238			162			12			(68	)		90
Other operating income		0			(10	)		(5	)		(7	)		(19	)		28			(8	)
Dividends		5			10			11			5			1			38			24
Income from equity-accounted method		0			(15	)		(10	)		(3	)		(12	)		(8	)		(16	)
Other operating income/expenses		(5	)		(5	)		(6	)		(9	)		(8	)		(2	)		(15	)
Gross income		(25	)		(83	)		117			23			(230	)		(177	)		(56	)
Operating expenses		(144	)		(146	)		(146	)		(149	)		(142	)		(150	)		(142	)
Net operating income		(170	)		(229	)		(29	)		(126	)		(372	)		(327	)		(199	)
Net loan-loss provisions		2			(2	)		0			2			(1	)		2			(1	)
Other income		(27	)		(48	)		(53	)		(325	)		(98	)		(132	)		(148	)
Ordinary profit before taxes		(195	)		(278	)		(82	)		(449	)		(470	)		(458	)		(348	)
Tax on profit		7			13			(29	)		(139	)		5			(32	)		(44	)
Ordinary profit from continuing operations		(187	)		(265	)		(111	)		(588	)		(465	)		(490	)		(392	)
Net profit from discontinued operations		—			—			—			—			0			—			(0	)
Ordinary consolidated profit		(187	)		(265	)		(111	)		(588	)		(465	)		(490	)		(392	)
Minority interests		(1	)		0			(0	)		(0	)		26			(1	)		2
Ordinary attributable profit to the Group		(187	)		(265	)		(111	)		(588	)		(491	)		(489	)		(394	)


	31.03.14			30.06.14			30.09.14			31.12.14			31.03.15			30.06.15			30.09.15
Balance sheet
Trading portfolio (w/o loans)		2,947			3,297			3,934			2,916			3,859			3,058			1,331
Available-for-sale financial assets		1,914			2,431			2,237			3,299			3,376			3,721			3,585
Goodwill		26,056			26,663			27,364			27,547			28,666			28,593			26,777
Capital assigned to Group areas		72,565			72,271			73,201			75,030			83,180			81,700			77,606
Other assets		38,343			38,461			34,761			32,585			36,449			36,369			35,635
Total assets/liabilities & shareholders’ equity		141,825			143,122			141,497			141,377			155,531			153,442			144,935
Customer deposits*		1,344			1,543			1,632			5,261			2,554			2,177			1,997
Marketable debt securities*		28,778			28,298			25,940			24,958			26,410			22,220			24,448
Subordinated debt		4,173			5,263			3,481			4,107			5,855			6,861			8,354
Other liabilities		35,241			34,326			34,996			30,091			25,136			30,105			25,139
Stockholders’ equity ***		72,288			73,691			75,447			76,961			95,576			92,078			84,998
Other managed and marketed customer funds		—			—			—			—			—			—			—
Mutual funds		—			—			—			—			—			—			—
Pension funds		—			—			—			—			—			—			—
Managed portfolios		—			—			—			—			—			—			—
Managed and marketed customer funds		34,296			35,105			31,053			34,325			34,820			31,258			34,798

(*).- Including all on-balance sheet balances for this item

(**).- Capital + reserves + profit + valuation adjustments

LOGO

Retail Banking

EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		22,639			20,535			2,104			10.2
Net fees		6,497			6,149			348			5.7
Gains (losses) on financial transactions		1,038			892			146			16.4
Other operating income *		552			146			406			277.6
Gross income		30,726			27,722			3,004			10.8
Operating expenses		(13,980	)		(12,846	)		(1,134	)		8.8
General administrative expenses		(12,808	)		(11,698	)		(1,109	)		9.5
Personnel		(6,859	)		(6,324	)		(535	)		8.5
Other general administrative expenses		(5,949	)		(5,374	)		(575	)		10.7
Depreciation and amortisation		(1,172	)		(1,147	)		(25	)		2.2
Net operating income		16,746			14,876			1,870			12.6
Net loan-loss provisions		(6,928	)		(7,437	)		509			(6.8	)
Other income		(1,325	)		(1,049	)		(276	)		26.3
Ordinary profit before taxes		8,494			6,391			2,104			32.9
Tax on profit		(2,144	)		(1,514	)		(630	)		41.6
Ordinary profit from continuing operations		6,350			4,876			1,473			30.2
Net profit from discontinued operations		—			(7	)		7			(100.0	)
Ordinary consolidated profit		6,350			4,870			1,480			30.4
Minority interests		893			779			115			14.7
Ordinary attributable profit to the Group		5,456			4,091			1,366			33.4

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

NOTE: In 9M’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

LOGO

Retail Banking

EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		6,661			6,887			6,987			7,164			7,535			7,671			7,434
Net fees		2,002			2,043			2,104			2,188			2,173			2,190			2,134
Gains (losses) on financial transactions		205			252			435			503			353			348			337
Other operating income *		1			82			63			112			176			187			190
Gross income		8,869			9,264			9,589			9,967			10,237			10,395			10,094
Operating expenses		(4,202	)		(4,248	)		(4,395	)		(4,537	)		(4,659	)		(4,699	)		(4,621	)
General administrative expenses		(3,787	)		(3,894	)		(4,018	)		(4,141	)		(4,280	)		(4,292	)		(4,235	)
Personnel		(2,044	)		(2,106	)		(2,174	)		(2,240	)		(2,277	)		(2,341	)		(2,240	)
Other general administrative expenses		(1,743	)		(1,788	)		(1,844	)		(1,900	)		(2,004	)		(1,951	)		(1,995	)
Depreciation and amortisation		(415	)		(355	)		(378	)		(396	)		(379	)		(407	)		(386	)
Net operating income		4,667			5,016			5,194			5,430			5,578			5,696			5,473
Net loan-loss provisions		(2,512	)		(2,363	)		(2,562	)		(2,303	)		(2,322	)		(2,318	)		(2,289	)
Other income		(277	)		(352	)		(420	)		(337	)		(372	)		(474	)		(479	)
Ordinary profit before taxes		1,877			2,301			2,212			2,791			2,885			2,905			2,705
Tax on profit		(447	)		(570	)		(497	)		(615	)		(765	)		(760	)		(620	)
Ordinary profit from continuing operations		1,430			1,731			1,715			2,175			2,120			2,145			2,085
Net profit from discontinued operations		(0	)		(0	)		(7	)		(19	)		0			0			(0	)
Ordinary consolidated profit		1,430			1,731			1,709			2,156			2,120			2,145			2,085
Minority interests		243			279			257			253			283			319			291
Ordinary attributable profit to the Group		1,187			1,453			1,452			1,903			1,837			1,826			1,794

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

NOTE: In 2Q’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

LOGO

Retail Banking

Constant EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		22,639			21,107			1,532			7.3
Net fees		6,497			6,199			298			4.8
Gains (losses) on financial transactions		1,038			927			111			12.0
Other operating income *		552			162			390			241.4
Gross income		30,726			28,395			2,331			8.2
Operating expenses		(13,980	)		(13,122	)		(857	)		6.5
General administrative expenses		(12,808	)		(11,949	)		(859	)		7.2
Personnel		(6,859	)		(6,482	)		(377	)		5.8
Other general administrative expenses		(5,949	)		(5,467	)		(482	)		8.8
Depreciation and amortisation		(1,172	)		(1,174	)		2			(0.1	)
Net operating income		16,746			15,273			1,473			9.6
Net loan-loss provisions		(6,928	)		(7,561	)		633			(8.4	)
Other income		(1,325	)		(1,013	)		(312	)		30.8
Ordinary profit before taxes		8,494			6,699			1,795			26.8
Tax on profit		(2,144	)		(1,589	)		(555	)		34.9
Ordinary profit from continuing operations		6,350			5,110			1,240			24.3
Net profit from discontinued operations		—			(7	)		7			(100.0	)
Ordinary consolidated profit		6,350			5,103			1,246			24.4
Minority interests		893			795			98			12.4
Ordinary attributable profit to the Group		5,456			4,308			1,148			26.6

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

NOTE: In 9M’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

LOGO

Retail Banking

Constant EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		6,962			7,079			7,066			7,274			7,398			7,558			7,684
Net fees		2,050			2,059			2,089			2,178			2,125			2,160			2,212
Gains (losses) on financial transactions		218			267			442			510			354			340			344
Other operating income *		6			87			69			119			176			184			192
Gross income		9,236			9,492			9,667			10,081			10,052			10,242			10,432
Operating expenses		(4,360	)		(4,339	)		(4,423	)		(4,582	)		(4,579	)		(4,636	)		(4,765	)
General administrative expenses		(3,926	)		(3,977	)		(4,045	)		(4,180	)		(4,208	)		(4,234	)		(4,365	)
Personnel		(2,125	)		(2,159	)		(2,198	)		(2,269	)		(2,239	)		(2,310	)		(2,310	)
Other general administrative expenses		(1,801	)		(1,818	)		(1,847	)		(1,911	)		(1,969	)		(1,925	)		(2,055	)
Depreciation and amortisation		(434	)		(362	)		(378	)		(402	)		(371	)		(401	)		(399	)
Net operating income		4,876			5,153			5,244			5,500			5,473			5,606			5,667
Net loan-loss provisions		(2,607	)		(2,389	)		(2,565	)		(2,316	)		(2,266	)		(2,279	)		(2,383	)
Other income		(275	)		(341	)		(397	)		(322	)		(356	)		(465	)		(504	)
Ordinary profit before taxes		1,995			2,423			2,281			2,862			2,851			2,863			2,780
Tax on profit		(474	)		(602	)		(513	)		(630	)		(753	)		(749	)		(642	)
Ordinary profit from continuing operations		1,521			1,821			1,769			2,232			2,098			2,113			2,138
Net profit from discontinued operations		(0	)		(0	)		(7	)		(19	)		0			0			(0	)
Ordinary consolidated profit		1,521			1,820			1,762			2,213			2,098			2,113			2,138
Minority interests		252			287			257			263			281			313			300
Ordinary attributable profit to the Group		1,269			1,534			1,506			1,950			1,817			1,800			1,839

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

NOTE: In 2Q’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

LOGO

Retail Banking Continental Europe

EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		5,354			4,822			532			11.0
Net fees		2,151			2,195			(43	)		(2.0	)
Gains (losses) on financial transactions		455			608			(152	)		(25.1	)
Other operating income *		207			(28	)		235			—
Gross income		8,168			7,596			572			7.5
Operating expenses		(4,221	)		(4,085	)		(136	)		3.3
General administrative expenses		(3,944	)		(3,809	)		(135	)		3.5
Personnel		(2,102	)		(2,043	)		(59	)		2.9
Other general administrative expenses		(1,842	)		(1,766	)		(76	)		4.3
Depreciation and amortisation		(277	)		(276	)		(1	)		0.5
Net operating income		3,947			3,512			436			12.4
Net loan-loss provisions		(1,313	)		(1,777	)		464			(26.1	)
Other income		(238	)		(278	)		40			(14.4	)
Profit before taxes		2,397			1,457			940			64.5
Tax on profit		(618	)		(344	)		(275	)		80.0
Profit from continuing operations		1,779			1,113			665			59.7
Net profit from discontinued operations		—			(7	)		7			(100.0	)
Consolidated profit		1,779			1,107			672			60.7
Minority interests		207			117			90			76.5
Attributable profit to the Group		1,572			990			582			58.8

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

LOGO

Retail Banking Continental Europe

EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		1,584			1,631			1,608			1,700			1,820			1,756			1,778
Net fees		746			731			718			740			707			726			718
Gains (losses) on financial transactions		129			218			260			457			261			61			133
Other operating income *		(21	)		0			(8	)		22			77			80			50
Gross income		2,438			2,581			2,578			2,919			2,866			2,623			2,679
Operating expenses		(1,387	)		(1,362	)		(1,335	)		(1,357	)		(1,399	)		(1,412	)		(1,410	)
General administrative expenses		(1,282	)		(1,277	)		(1,251	)		(1,266	)		(1,316	)		(1,317	)		(1,310	)
Personnel		(692	)		(680	)		(670	)		(687	)		(700	)		(724	)		(678	)
Other general administrative expenses		(590	)		(596	)		(580	)		(579	)		(617	)		(593	)		(633	)
Depreciation and amortisation		(105	)		(85	)		(85	)		(91	)		(83	)		(95	)		(100	)
Net operating income		1,050			1,219			1,243			1,562			1,467			1,211			1,269
Net loan-loss provisions		(620	)		(588	)		(568	)		(563	)		(536	)		(431	)		(346	)
Other income		(70	)		(109	)		(98	)		34			(76	)		(107	)		(55	)
Profit before taxes		360			521			576			1,033			855			673			869
Tax on profit		(74	)		(127	)		(143	)		(293	)		(223	)		(169	)		(227	)
Profit from continuing operations		286			394			434			740			632			504			643
Net profit from discontinued operations		(0	)		(0	)		(7	)		(19	)		0			0			(0	)
Consolidated profit		286			394			427			721			632			504			643
Minority interests		36			37			45			48			69			66			72
Attributable profit to the Group		250			357			382			672			563			438			571

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

LOGO

Retail Banking Continental Europe

Constant EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		5,354			4,812			542			11.3
Net fees		2,151			2,203			(52	)		(2.4	)
Gains (losses) on financial transactions		455			610			(154	)		(25.3	)
Other operating income *		207			(28	)		235			—
Gross income		8,168			7,597			571			7.5
Operating expenses		(4,221	)		(4,088	)		(133	)		3.2
General administrative expenses		(3,944	)		(3,812	)		(131	)		3.4
Personnel		(2,102	)		(2,046	)		(56	)		2.7
Other general administrative expenses		(1,842	)		(1,767	)		(76	)		4.3
Depreciation and amortisation		(277	)		(276	)		(1	)		0.4
Net operating income		3,947			3,509			438			12.5
Net loan-loss provisions		(1,313	)		(1,774	)		461			(26.0	)
Other income		(238	)		(278	)		40			(14.4	)
Profit before taxes		2,397			1,457			940			64.5
Tax on profit		(618	)		(343	)		(276	)		80.4
Profit from continuing operations		1,779			1,115			664			59.6
Net profit from discontinued operations		—			(7	)		7			(100.0	)
Consolidated profit		1,779			1,108			671			60.6
Minority interests		207			118			89			75.8
Attributable profit to the Group		1,572			990			582			58.7

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

LOGO

Retail Banking Continental Europe

Constant EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		1,583			1,627			1,602			1,704			1,821			1,747			1,786
Net fees		749			734			720			743			708			724			719
Gains (losses) on financial transactions		130			219			261			457			261			61			133
Other operating income *		(20	)		1			(8	)		22			77			80			50
Gross income		2,441			2,581			2,575			2,926			2,868			2,612			2,689
Operating expenses		(1,389	)		(1,363	)		(1,336	)		(1,358	)		(1,400	)		(1,407	)		(1,414	)
General administrative expenses		(1,284	)		(1,277	)		(1,251	)		(1,267	)		(1,317	)		(1,313	)		(1,314	)
Personnel		(694	)		(681	)		(671	)		(688	)		(700	)		(722	)		(680	)
Other general administrative expenses		(590	)		(596	)		(580	)		(578	)		(617	)		(591	)		(635	)
Depreciation and amortisation		(105	)		(85	)		(85	)		(92	)		(83	)		(94	)		(100	)
Net operating income		1,052			1,218			1,239			1,567			1,468			1,205			1,275
Net loan-loss provisions		(620	)		(587	)		(567	)		(562	)		(536	)		(429	)		(347	)
Other income		(70	)		(109	)		(98	)		35			(76	)		(107	)		(55	)
Profit before taxes		362			521			574			1,040			855			669			873
Tax on profit		(75	)		(126	)		(142	)		(295	)		(223	)		(168	)		(227	)
Profit from continuing operations		287			395			432			745			633			500			645
Net profit from discontinued operations		(0	)		(0	)		(7	)		(19	)		0			0			(0	)
Consolidated profit		287			395			426			726			633			500			645
Minority interests		36			37			45			49			70			65			72
Attributable profit to the Group		251			358			381			677			563			435			574

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

LOGO

Retail Banking United Kingdom

EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		3,634			3,073			561			18.3
Net fees		689			617			72			11.6
Gains (losses) on financial transactions		68			36			32			89.2
Other operating income *		20			17			3			15.6
Gross income		4,411			3,743			668			17.8
Operating expenses		(2,228	)		(1,919	)		(308	)		16.1
General administrative expenses		(2,000	)		(1,691	)		(309	)		18.3
Personnel		(1,039	)		(1,000	)		(39	)		3.9
Other general administrative expenses		(961	)		(691	)		(270	)		39.1
Depreciation and amortisation		(228	)		(228	)		0			(0.2	)
Net operating income		2,183			1,824			360			19.7
Net loan-loss provisions		(98	)		(294	)		196			(66.6	)
Other income		(230	)		(176	)		(54	)		30.4
Profit before taxes		1,855			1,353			502			37.1
Tax on profit		(402	)		(283	)		(119	)		42.1
Profit from continuing operations		1,453			1,071			383			35.7
Net profit from discontinued operations		—			—			—			—
Consolidated profit		1,453			1,071			383			35.7
Minority interests		27			—			27			—
Attributable profit to the Group		1,426			1,071			356			33.2

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

LOGO

Retail Banking United Kingdom

EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		978			1,017			1,078			1,110			1,175			1,230			1,229
Net fees		206			201			210			208			230			233			226
Gains (losses) on financial transactions		21			16			(2	)		(32	)		4			41			23
Other operating income *		5			4			8			4			3			1			16
Gross income		1,210			1,239			1,294			1,290			1,412			1,505			1,494
Operating expenses		(631	)		(636	)		(652	)		(697	)		(730	)		(750	)		(748	)
General administrative expenses		(545	)		(559	)		(587	)		(608	)		(660	)		(670	)		(670	)
Personnel		(320	)		(327	)		(353	)		(354	)		(339	)		(356	)		(344	)
Other general administrative expenses		(226	)		(231	)		(234	)		(254	)		(321	)		(315	)		(326	)
Depreciation and amortisation		(86	)		(78	)		(65	)		(89	)		(70	)		(80	)		(78	)
Net operating income		579			603			642			594			682			755			746
Net loan-loss provisions		(116	)		(91	)		(87	)		(32	)		(72	)		(34	)		8
Other income		(43	)		(60	)		(74	)		(134	)		(56	)		(51	)		(124	)
Profit before taxes		420			452			481			428			554			670			631
Tax on profit		(84	)		(96	)		(103	)		(97	)		(109	)		(149	)		(144	)
Profit from continuing operations		336			357			378			331			446			522			486
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		336			357			378			331			446			522			486
Minority interests		—			—			—			—			8			9			10
Attributable profit to the Group		336			357			378			331			438			512			477

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

LOGO

Retail Banking United Kingdom

Constant EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		3,634			3,432			203			5.9
Net fees		689			689			(0	)		(0.0	)
Gains (losses) on financial transactions		68			40			28			69.4
Other operating income *		20			19			1			3.5
Gross income		4,411			4,180			231			5.5
Operating expenses		(2,228	)		(2,144	)		(84	)		3.9
General administrative expenses		(2,000	)		(1,888	)		(111	)		5.9
Personnel		(1,039	)		(1,117	)		78			(7.0	)
Other general administrative expenses		(961	)		(772	)		(189	)		24.6
Depreciation and amortisation		(228	)		(255	)		27			(10.6	)
Net operating income		2,183			2,037			147			7.2
Net loan-loss provisions		(98	)		(328	)		230			(70.1	)
Other income		(230	)		(197	)		(33	)		16.7
Profit before taxes		1,855			1,511			344			22.7
Tax on profit		(402	)		(316	)		(86	)		27.2
Profit from continuing operations		1,453			1,196			258			21.5
Net profit from discontinued operations		—			—			—			—
Consolidated profit		1,453			1,196			258			21.5
Minority interests		27			—			27			—
Attributable profit to the Group		1,426			1,196			230			19.3

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

LOGO

Retail Banking United Kingdom

Constant EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		1,114			1,141			1,177			1,206			1,201			1,221			1,212
Net fees		235			225			229			226			235			231			223
Gains (losses) on financial transactions		24			18			(2	)		(35	)		4			41			23
Other operating income *		5			5			9			4			3			1			16
Gross income		1,379			1,389			1,413			1,401			1,443			1,494			1,474
Operating expenses		(719	)		(713	)		(712	)		(757	)		(746	)		(744	)		(738	)
General administrative expenses		(621	)		(626	)		(641	)		(661	)		(674	)		(665	)		(660	)
Personnel		(364	)		(367	)		(386	)		(385	)		(346	)		(353	)		(339	)
Other general administrative expenses		(257	)		(259	)		(255	)		(276	)		(328	)		(312	)		(321	)
Depreciation and amortisation		(98	)		(87	)		(71	)		(97	)		(72	)		(79	)		(77	)
Net operating income		660			676			701			644			697			750			736
Net loan-loss provisions		(133	)		(102	)		(94	)		(33	)		(74	)		(33	)		9
Other income		(49	)		(67	)		(81	)		(147	)		(57	)		(50	)		(123	)
Profit before taxes		478			507			526			464			566			667			622
Tax on profit		(95	)		(107	)		(113	)		(105	)		(111	)		(148	)		(143	)
Profit from continuing operations		383			400			413			358			455			518			479
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		383			400			413			358			455			518			479
Minority interests		—			—			—			—			8			9			10
Attributable profit to the Group		383			400			413			358			447			509			470

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

LOGO

Retail Banking United Kingdom

£ million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		2,641			2,494			147			5.9
Net fees		501			501			(0	)		(0.0	)
Gains (losses) on financial transactions		49			29			20			69.4
Other operating income *		14			14			0			3.5
Gross income		3,206			3,038			168			5.5
Operating expenses		(1,619	)		(1,558	)		(61	)		3.9
General administrative expenses		(1,453	)		(1,372	)		(81	)		5.9
Personnel		(755	)		(812	)		57			(7.0	)
Other general administrative expenses		(699	)		(561	)		(138	)		24.6
Depreciation and amortisation		(166	)		(185	)		20			(10.6	)
Net operating income		1,587			1,480			107			7.2
Net loan-loss provisions		(71	)		(238	)		167			(70.1	)
Other income		(167	)		(143	)		(24	)		16.7
Profit before taxes		1,348			1,098			250			22.7
Tax on profit		(292	)		(229	)		(62	)		27.2
Profit from continuing operations		1,056			869			187			21.5
Net profit from discontinued operations		—			—			—			—
Consolidated profit		1,056			869			187			21.5
Minority interests		20			—			20			—
Attributable profit to the Group		1,036			869			167			19.3

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

LOGO

Retail Banking United Kingdom

£ million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		810			829			855			876			873			887			881
Net fees		171			164			166			164			171			168			162
Gains (losses) on financial transactions		18			13			(2	)		(26	)		3			30			17
Other operating income *		4			4			6			3			3			1			11
Gross income		1,002			1,009			1,026			1,018			1,049			1,086			1,071
Operating expenses		(522	)		(518	)		(517	)		(550	)		(542	)		(541	)		(536	)
General administrative expenses		(452	)		(455	)		(466	)		(480	)		(490	)		(483	)		(480	)
Personnel		(265	)		(267	)		(280	)		(279	)		(252	)		(257	)		(247	)
Other general administrative expenses		(187	)		(189	)		(185	)		(201	)		(239	)		(227	)		(233	)
Depreciation and amortisation		(71	)		(63	)		(51	)		(70	)		(52	)		(57	)		(56	)
Net operating income		480			491			509			468			507			545			535
Net loan-loss provisions		(96	)		(74	)		(68	)		(24	)		(54	)		(24	)		6
Other income		(35	)		(49	)		(59	)		(107	)		(41	)		(36	)		(89	)
Profit before taxes		348			369			382			337			412			484			452
Tax on profit		(69	)		(78	)		(82	)		(77	)		(81	)		(108	)		(104	)
Profit from continuing operations		278			291			300			260			331			377			348
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		278			291			300			260			331			377			348
Minority interests		—			—			—			—			6			7			7
Attributable profit to the Group		278			291			300			260			325			370			341

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

LOGO

Retail Banking Latin America

EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		9,168			9,169			(1	)		(0.0	)
Net fees		2,930			2,792			138			4.9
Gains (losses) on financial transactions		373			148			224			151.5
Other operating income *		60			66			(7	)		(10.0	)
Gross income		12,530			12,175			355			2.9
Operating expenses		(5,476	)		(5,332	)		(144	)		2.7
General administrative expenses		(4,998	)		(4,834	)		(164	)		3.4
Personnel		(2,682	)		(2,528	)		(154	)		6.1
Other general administrative expenses		(2,315	)		(2,306	)		(10	)		0.4
Depreciation and amortisation		(479	)		(498	)		19			(3.9	)
Net operating income		7,054			6,843			211			3.1
Net loan-loss provisions		(3,379	)		(3,759	)		380			(10.1	)
Other income		(754	)		(575	)		(179	)		31.1
Ordinary profit before taxes		2,921			2,509			412			16.4
Tax on profit		(684	)		(564	)		(120	)		21.4
Ordinary profit from continuing operations		2,237			1,945			292			15.0
Net profit from discontinued operations		—			—			—			—
Ordinary consolidated profit		2,237			1,945			292			15.0
Minority interests		382			503			(121	)		(24.1	)
Ordinary attributable profit to the Group		1,855			1,442			413			28.6

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

NOTE: In 9M’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

LOGO

Retail Banking Latin America

EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		2,982			3,083			3,104			3,122			3,101			3,162			2,905
Net fees		877			925			990			1,048			996			990			944
Gains (losses) on financial transactions		27			2			118			22			54			153			166
Other operating income *		1			43			23			20			3			29			28
Gross income		3,888			4,053			4,234			4,212			4,154			4,333			4,044
Operating expenses		(1,693	)		(1,762	)		(1,878	)		(1,904	)		(1,877	)		(1,862	)		(1,738	)
General administrative expenses		(1,523	)		(1,610	)		(1,701	)		(1,740	)		(1,711	)		(1,693	)		(1,594	)
Personnel		(793	)		(848	)		(887	)		(906	)		(901	)		(918	)		(862	)
Other general administrative expenses		(730	)		(762	)		(814	)		(834	)		(809	)		(775	)		(731	)
Depreciation and amortisation		(170	)		(152	)		(177	)		(164	)		(166	)		(169	)		(144	)
Net operating income		2,195			2,291			2,357			2,308			2,277			2,471			2,306
Net loan-loss provisions		(1,226	)		(1,211	)		(1,322	)		(1,129	)		(1,074	)		(1,101	)		(1,204	)
Other income		(162	)		(180	)		(233	)		(270	)		(221	)		(274	)		(258	)
Ordinary profit before taxes		807			901			801			910			981			1,096			844
Tax on profit		(201	)		(204	)		(159	)		(110	)		(277	)		(283	)		(125	)
Ordinary profit from continuing operations		607			697			642			800			704			813			719
Net profit from discontinued operations		—			—			—			—			—			—			—
Ordinary consolidated profit		607			697			642			800			704			813			719
Minority interests		163			176			163			144			107			143			132
Ordinary attributable profit to the Group		443			520			479			655			598			670			587

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

NOTE: In 2Q’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

LOGO

Retail Banking Latin America

Constant EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		9,168			8,642			526			6.1
Net fees		2,930			2,643			287			10.8
Gains (losses) on financial transactions		373			155			217			139.8
Other operating income *		60			60			0			0.1
Gross income		12,530			11,500			1,030			9.0
Operating expenses		(5,476	)		(5,055	)		(422	)		8.3
General administrative expenses		(4,998	)		(4,589	)		(409	)		8.9
Personnel		(2,682	)		(2,403	)		(279	)		11.6
Other general administrative expenses		(2,315	)		(2,186	)		(130	)		5.9
Depreciation and amortisation		(479	)		(466	)		(12	)		2.7
Net operating income		7,054			6,445			609			9.4
Net loan-loss provisions		(3,379	)		(3,503	)		124			(3.5	)
Other income		(754	)		(514	)		(240	)		46.6
Ordinary profit before taxes		2,921			2,428			493			20.3
Tax on profit		(684	)		(536	)		(148	)		27.5
Ordinary profit from continuing operations		2,237			1,892			345			18.3
Net profit from discontinued operations		—			—			—			—
Ordinary consolidated profit		2,237			1,892			345			18.3
Minority interests		382			484			(103	)		(21.2	)
Ordinary attributable profit to the Group		1,855			1,407			448			31.8

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

NOTE: In 9M’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

LOGO

Retail Banking Latin America

Constant EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		2,891			2,887			2,863			2,985			2,923			3,078			3,167
Net fees		854			871			918			995			939			966			1,025
Gains (losses) on financial transactions		31			10			114			25			53			145			174
Other operating income *		0			39			20			16			2			27			31
Gross income		3,777			3,808			3,915			4,021			3,917			4,217			4,397
Operating expenses		(1,648	)		(1,662	)		(1,745	)		(1,815	)		(1,773	)		(1,814	)		(1,889	)
General administrative expenses		(1,484	)		(1,521	)		(1,583	)		(1,659	)		(1,616	)		(1,650	)		(1,731	)
Personnel		(773	)		(802	)		(828	)		(866	)		(852	)		(894	)		(936	)
Other general administrative expenses		(711	)		(719	)		(755	)		(794	)		(764	)		(756	)		(795	)
Depreciation and amortisation		(164	)		(141	)		(162	)		(155	)		(157	)		(164	)		(158	)
Net operating income		2,129			2,147			2,170			2,206			2,144			2,402			2,507
Net loan-loss provisions		(1,178	)		(1,117	)		(1,208	)		(1,071	)		(1,010	)		(1,070	)		(1,298	)
Other income		(153	)		(161	)		(200	)		(249	)		(204	)		(266	)		(284	)
Ordinary profit before taxes		798			868			762			887			930			1,067			925
Tax on profit		(195	)		(192	)		(149	)		(102	)		(261	)		(275	)		(148	)
Ordinary profit from continuing operations		603			676			613			785			668			791			777
Net profit from discontinued operations		—			—			—			—			—			—			—
Ordinary consolidated profit		603			676			613			785			668			791			777
Minority interests		162			169			153			146			103			139			141
Ordinary attributable profit to the Group		441			507			459			639			566			653			637

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

NOTE: In 2Q’15 not including attributable profit of EUR 835 million due to the net result of the reversal of tax liabilities in Brazil

LOGO

Retail Banking USA

EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		4,482			3,471			1,011			29.1
Net fees		727			546			181			33.2
Gains (losses) on financial transactions		142			100			42			42.3
Other operating income *		265			91			174			192.2
Gross income		5,616			4,207			1,409			33.5
Operating expenses		(2,055	)		(1,509	)		(545	)		36.1
General administrative expenses		(1,866	)		(1,364	)		(502	)		36.8
Personnel		(1,036	)		(753	)		(283	)		37.6
Other general administrative expenses		(830	)		(611	)		(219	)		35.8
Depreciation and amortisation		(188	)		(145	)		(43	)		29.8
Net operating income		3,562			2,698			864			32.0
Net loan-loss provisions		(2,138	)		(1,608	)		(530	)		33.0
Other income		(102	)		(19	)		(83	)		432.3
Profit before taxes		1,321			1,071			250			23.4
Tax on profit		(441	)		(324	)		(116	)		35.8
Profit from continuing operations		881			747			134			17.9
Net profit from discontinued operations		—			—			—			—
Consolidated profit		881			747			134			17.9
Minority interests		278			159			119			75.0
Attributable profit to the Group		603			588			15			2.5

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

100

LOGO

Retail Banking USA

EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		1,117			1,156			1,198			1,232			1,438			1,523			1,521
Net fees		173			186			187			191			240			241			245
Gains (losses) on financial transactions		27			16			58			56			34			94			14
Other operating income *		16			34			40			66			93			77			95
Gross income		1,333			1,392			1,482			1,545			1,806			1,935			1,876
Operating expenses		(491	)		(488	)		(530	)		(579	)		(653	)		(676	)		(725	)
General administrative expenses		(437	)		(449	)		(479	)		(527	)		(594	)		(611	)		(661	)
Personnel		(239	)		(251	)		(263	)		(294	)		(337	)		(343	)		(356	)
Other general administrative expenses		(198	)		(198	)		(216	)		(234	)		(257	)		(268	)		(305	)
Depreciation and amortisation		(54	)		(40	)		(51	)		(52	)		(59	)		(64	)		(64	)
Net operating income		842			903			953			966			1,152			1,259			1,151
Net loan-loss provisions		(550	)		(473	)		(584	)		(579	)		(639	)		(752	)		(747	)
Other income		(3	)		(3	)		(14	)		32			(18	)		(42	)		(42	)
Profit before taxes		290			427			354			419			495			465			361
Tax on profit		(89	)		(143	)		(93	)		(114	)		(157	)		(159	)		(125	)
Profit from continuing operations		201			284			261			305			338			306			237
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		201			284			261			305			338			306			237
Minority interests		44			65			49			61			100			100			78
Attributable profit to the Group		157			218			212			244			239			205			159

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

101

LOGO

Retail Banking USA

Constant EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		4,482			4,222			260			6.2
Net fees		727			664			63			9.5
Gains (losses) on financial transactions		142			122			21			17.0
Other operating income *		265			110			155			140.2
Gross income		5,616			5,118			499			9.7
Operating expenses		(2,055	)		(1,836	)		(219	)		11.9
General administrative expenses		(1,866	)		(1,659	)		(207	)		12.5
Personnel		(1,036	)		(916	)		(120	)		13.1
Other general administrative expenses		(830	)		(743	)		(87	)		11.7
Depreciation and amortisation		(188	)		(176	)		(12	)		6.7
Net operating income		3,562			3,282			280			8.5
Net loan-loss provisions		(2,138	)		(1,956	)		(182	)		9.3
Other income		(102	)		(23	)		(79	)		337.6
Profit before taxes		1,321			1,303			18			1.4
Tax on profit		(441	)		(395	)		(46	)		11.6
Profit from continuing operations		881			908			(28	)		(3.0	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		881			908			(28	)		(3.0	)
Minority interests		278			193			85			43.9
Attributable profit to the Group		603			715			(112	)		(15.7	)

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

102

LOGO

Retail Banking USA

Constant EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		1,374			1,424			1,424			1,379			1,453			1,511			1,519
Net fees		213			229			222			214			243			239			245
Gains (losses) on financial transactions		33			19			70			64			35			93			14
Other operating income *		20			42			48			77			94			76			95
Gross income		1,640			1,714			1,764			1,734			1,824			1,920			1,873
Operating expenses		(604	)		(601	)		(631	)		(651	)		(660	)		(670	)		(724	)
General administrative expenses		(537	)		(552	)		(570	)		(593	)		(600	)		(606	)		(660	)
Personnel		(294	)		(309	)		(313	)		(330	)		(341	)		(340	)		(355	)
Other general administrative expenses		(243	)		(243	)		(257	)		(263	)		(259	)		(266	)		(304	)
Depreciation and amortisation		(67	)		(49	)		(61	)		(58	)		(60	)		(64	)		(64	)
Net operating income		1,036			1,112			1,134			1,083			1,164			1,249			1,149
Net loan-loss provisions		(676	)		(583	)		(696	)		(649	)		(645	)		(747	)		(746	)
Other income		(3	)		(3	)		(17	)		39			(19	)		(41	)		(42	)
Profit before taxes		357			526			420			472			500			461			360
Tax on profit		(109	)		(176	)		(109	)		(128	)		(158	)		(158	)		(124	)
Profit from continuing operations		248			350			311			344			342			303			236
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		248			350			311			344			342			303			236
Minority interests		54			81			58			68			101			100			78
Attributable profit to the Group		194			269			253			276			241			203			159

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

103

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Retail Banking USA

US$ million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		4,991			4,701			290			6.2
Net fees		809			739			70			9.5
Gains (losses) on financial transactions		159			136			23			17.0
Other operating income *		295			123			172			140.2
Gross income		6,254			5,698			555			9.7
Operating expenses		(2,288	)		(2,044	)		(244	)		11.9
General administrative expenses		(2,078	)		(1,848	)		(231	)		12.5
Personnel		(1,154	)		(1,020	)		(134	)		13.1
Other general administrative expenses		(924	)		(828	)		(97	)		11.7
Depreciation and amortisation		(209	)		(196	)		(13	)		6.7
Net operating income		3,966			3,654			312			8.5
Net loan-loss provisions		(2,381	)		(2,178	)		(203	)		9.3
Other income		(114	)		(26	)		(88	)		337.6
Profit before taxes		1,471			1,451			20			1.4
Tax on profit		(491	)		(439	)		(51	)		11.6
Profit from continuing operations		981			1,011			(31	)		(3.0	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		981			1,011			(31	)		(3.0	)
Minority interests		309			215			94			43.9
Attributable profit to the Group		671			796			(125	)		(15.7	)

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

104

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Retail Banking USA

US$ million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		1,530			1,585			1,586			1,536			1,618			1,682			1,691
Net fees		237			255			247			238			270			266			273
Gains (losses) on financial transactions		37			21			78			71			39			104			16
Other operating income *		22			47			54			85			104			85			106
Gross income		1,826			1,908			1,964			1,931			2,031			2,137			2,085
Operating expenses		(672	)		(669	)		(702	)		(725	)		(735	)		(746	)		(806	)
General administrative expenses		(598	)		(615	)		(635	)		(661	)		(668	)		(675	)		(735	)
Personnel		(327	)		(344	)		(349	)		(368	)		(379	)		(379	)		(396	)
Other general administrative expenses		(271	)		(271	)		(286	)		(293	)		(289	)		(296	)		(339	)
Depreciation and amortisation		(74	)		(55	)		(68	)		(64	)		(67	)		(71	)		(71	)
Net operating income		1,154			1,239			1,262			1,205			1,296			1,391			1,279
Net loan-loss provisions		(753	)		(649	)		(775	)		(723	)		(719	)		(832	)		(831	)
Other income		(3	)		(4	)		(19	)		43			(21	)		(46	)		(47	)
Profit before taxes		397			586			468			526			557			513			401
Tax on profit		(121	)		(196	)		(122	)		(143	)		(176	)		(176	)		(138	)
Profit from continuing operations		276			389			346			383			380			337			263
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		276			389			346			383			380			337			263
Minority interests		60			90			65			76			112			111			86
Attributable profit to the Group		216			299			281			307			268			226			177

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

105

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Global Corporate Banking

EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		2,178			1,812			365			20.1
Net fees		1,095			1,039			56			5.4
Gains (losses) on financial transactions		508			797			(289	)		(36.2	)
Other operating income *		224			207			17			8.2
Gross income		4,005			3,855			150			3.9
Operating expenses		(1,553	)		(1,369	)		(183	)		13.4
General administrative expenses		(1,425	)		(1,251	)		(174	)		13.9
Personnel		(815	)		(741	)		(74	)		10.0
Other general administrative expenses		(610	)		(510	)		(100	)		19.5
Depreciation and amortisation		(128	)		(118	)		(10	)		8.3
Net operating income		2,452			2,486			(34	)		(1.4	)
Net loan-loss provisions		(449	)		(438	)		(11	)		2.6
Other income		(46	)		(37	)		(9	)		24.6
Profit before taxes		1,957			2,011			(54	)		(2.7	)
Tax on profit		(555	)		(560	)		4			(0.8	)
Profit from continuing operations		1,402			1,452			(50	)		(3.4	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		1,402			1,452			(50	)		(3.4	)
Minority interests		98			117			(19	)		(16.6	)
Attributable profit to the Group		1,304			1,335			(30	)		(2.3	)

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

106

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Global Corporate Banking

EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		566			646			600			669			737			741			699
Net fees		336			365			338			354			352			402			341
Gains (losses) on financial transactions		348			173			276			(50	)		286			58			164
Other operating income *		32			133			42			95			22			153			49
Gross income		1,281			1,317			1,257			1,068			1,398			1,355			1,253
Operating expenses		(444	)		(454	)		(471	)		(471	)		(510	)		(522	)		(520	)
General administrative expenses		(406	)		(414	)		(431	)		(431	)		(466	)		(479	)		(479	)
Personnel		(241	)		(243	)		(257	)		(248	)		(266	)		(283	)		(267	)
Other general administrative expenses		(165	)		(171	)		(174	)		(183	)		(201	)		(197	)		(213	)
Depreciation and amortisation		(38	)		(39	)		(41	)		(40	)		(44	)		(43	)		(41	)
Net operating income		837			864			785			596			888			832			732
Net loan-loss provisions		(107	)		(197	)		(133	)		(105	)		(198	)		(144	)		(107	)
Other income		(19	)		(19	)		1			(65	)		4			(23	)		(28	)
Profit before taxes		710			647			653			426			694			665			598
Tax on profit		(199	)		(174	)		(187	)		(107	)		(198	)		(181	)		(176	)
Profit from continuing operations		512			473			467			319			496			484			421
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		512			473			467			319			496			484			421
Minority interests		36			39			42			29			39			33			25
Attributable profit to the Group		476			433			425			291			457			451			396

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

107

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Global Corporate Banking

Constant EUR million


							Variation
	9M ‘15			9M ‘14			Amount			%
Income statement
Net interest income		2,178			1,797			381			21.2
Net fees		1,095			1,049			46			4.4
Gains (losses) on financial transactions		508			823			(315	)		(38.2	)
Other operating income *		224			207			17			8.2
Gross income		4,005			3,876			129			3.3
Operating expenses		(1,553	)		(1,408	)		(144	)		10.3
General administrative expenses		(1,425	)		(1,292	)		(133	)		10.3
Personnel		(815	)		(766	)		(49	)		6.4
Other general administrative expenses		(610	)		(526	)		(84	)		15.9
Depreciation and amortisation		(128	)		(116	)		(11	)		9.8
Net operating income		2,452			2,468			(16	)		(0.6	)
Net loan-loss provisions		(449	)		(442	)		(7	)		1.6
Other income		(46	)		(37	)		(9	)		24.8
Profit before taxes		1,957			1,989			(32	)		(1.6	)
Tax on profit		(555	)		(550	)		(5	)		0.9
Profit from continuing operations		1,402			1,438			(37	)		(2.5	)
Net profit from discontinued operations		—			—			—			—
Consolidated profit		1,402			1,438			(37	)		(2.5	)
Minority interests		98			114			(16	)		(14.1	)
Attributable profit to the Group		1,304			1,325			(21	)		(1.6	)

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

108

LOGO

Global Corporate Banking

Constant EUR million


	1Q 14			2Q 14			3Q 14			4Q 14			1Q 15			2Q 15			3Q 15
Income statement
Net interest income		568			638			591			661			711			730			737
Net fees		344			368			337			357			345			397			353
Gains (losses) on financial transactions		358			187			278			(39	)		283			59			167
Other operating income *		33			132			42			95			22			153			49
Gross income		1,303			1,326			1,247			1,073			1,361			1,338			1,305
Operating expenses		(462	)		(467	)		(480	)		(479	)		(504	)		(517	)		(532	)
General administrative expenses		(424	)		(428	)		(440	)		(439	)		(461	)		(474	)		(490	)
Personnel		(253	)		(252	)		(262	)		(254	)		(262	)		(279	)		(274	)
Other general administrative expenses		(172	)		(176	)		(178	)		(186	)		(199	)		(195	)		(216	)
Depreciation and amortisation		(38	)		(39	)		(40	)		(40	)		(43	)		(43	)		(42	)
Net operating income		841			859			768			594			857			821			774
Net loan-loss provisions		(107	)		(199	)		(136	)		(92	)		(189	)		(141	)		(120	)
Other income		(20	)		(19	)		2			(66	)		3			(23	)		(27	)
Profit before taxes		714			641			634			436			672			658			627
Tax on profit		(198	)		(172	)		(180	)		(109	)		(191	)		(179	)		(185	)
Profit from continuing operations		516			469			453			327			481			479			442
Net profit from discontinued operations		—			—			—			—			—			—			—
Consolidated profit		516			469			453			327			481			479			442
Minority interests		36			38			40			28			37			32			28
Attributable profit to the Group		480			430			414			298			444			446			414

(*).-

Including dividends, income from equity-accounted method and other operating income/expenses

109

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NPL ratio


	31.03.14		30.06.14		30.09.14		31.12.14		31.03.15		30.06.15		30.09.15

Continental Europe		9.08		9.00		8.92		8.88		8.52		8.15		7.89
Spain		7.61		7.59		7.57		7.38		7.25		6.91		6.61
Santander Consumer Finance		4.14		4.07		3.97		4.82		4.52		4.25		4.15
Poland		7.35		7.42		7.43		7.42		7.33		7.07		7.14
Portugal		8.26		8.16		8.49		8.89		8.96		8.80		8.86
United Kingdom		1.88		1.91		1.80		1.79		1.75		1.61		1.51
Latin America		5.19		5.18		5.13		4.79		4.64		4.74		4.65
Brazil		5.74		5.78		5.64		5.05		4.90		5.13		5.30
Mexico		3.62		3.52		3.74		3.84		3.71		3.81		3.54
Chile		5.99		5.94		5.98		5.97		5.88		5.73		5.60
USA		2.78		2.79		2.57		2.42		2.20		2.20		2.20
Operating Areas		5.54		5.46		5.29		5.19		4.87		4.68		4.52
Total Group		5.52		5.45		5.28		5.19		4.85		4.64		4.50

110

LOGO

Coverage ratio


	31.03.14		30.06.14		30.09.14		31.12.14		31.03.15		30.06.15		30.09.15

Continental Europe		58.0		58.4		58.1		57.2		58.6		58.9		60.4
Spain		44.6		44.9		45.5		45.5		46.6		46.8		47.8
Santander Consumer Finance		105.1		105.2		106.4		100.1		103.6		104.9		107.2
Poland		64.6		65.3		65.8		60.3		61.6		63.5		63.1
Portugal		50.6		53.1		53.9		51.8		52.4		54.2		56.2
United Kingdom		42.9		41.1		43.4		41.9		41.2		40.3		39.6
Latin America		85.9		86.0		83.4		84.5		83.6		84.4		85.4
Brazil		95.2		94.8		91.4		95.4		95.2		95.9		96.0
Mexico		98.6		96.6		90.1		86.1		88.4		87.5		93.0
Chile		50.7		51.7		52.3		52.4		52.0		51.6		52.8
USA		163.2		165.6		183.7		193.6		211.5		224.2		218.3
Operating Areas		66.0		66.4		67.0		66.6		68.3		69.4		70.5
Total Group		66.3		66.8		67.5		67.2		68.9		70.1		71.1

111

LOGO

Cost of credit


	31.03.14		30.06.14		30.09.14		31.12.14		31.03.15		30.06.15		30.09.15

Continental Europe		1.20		1.14		1.07		1.01		0.95		0.86		0.77
Spain		1.37		1.31		1.21		1.06		0.97		0.84		0.71
Santander Consumer Finance		0.89		0.87		0.85		0.90		0.93		0.91		0.87
Poland		0.98		0.92		0.95		1.04		1.00		1.00		0.96
Portugal		0.63		0.55		0.47		0.50		0.45		0.38		0.35
United Kingdom		0.23		0.22		0.19		0.14		0.11		0.08		0.04
Latin America		4.36		4.06		3.88		3.70		3.53		3.39		3.33
Brazil		5.82		5.38		5.14		4.91		4.63		4.45		4.40
Mexico		3.59		3.58		3.26		2.98		2.92		2.89		2.87
Chile		1.82		1.76		1.71		1.75		1.74		1.68		1.68
USA		2.82		3.03		3.27		3.31		3.25		3.39		3.36
Operating Areas		1.61		1.55		1.50		1.44		1.38		1.33		1.27
Total Group		1.65		1.56		1.52		1.43		1.38		1.32		1.26

112

LOGO

Risk-weighted assets

EUR million


	31.03.14		30.06.14		30.09.14		31.12.14		31.03.15		30.06.15		30.09.15

Continental Europe		217,140		214,372		215,265		216,260		226,348		222,524		215,770
Spain		109,615		107,870		108,770		111,627		111,376		106,999		103,608
Santander Consumer Finance		49,191		49,420		49,908		47,259		55,711		54,895		54,890
Poland		16,131		16,285		16,575		16,813		17,329		16,800		16,876
Portugal		16,646		16,776		16,266		16,121		15,804		16,001		15,988
Spain’s real estate activity		14,889		14,652		13,539		14,805		14,892		16,558		16,576
United Kingdom		95,469		99,475		103,264		103,470		114,165		121,925		118,058
Latin America		140,226		149,170		152,045		171,372		174,954		169,250		152,805
Brazil		80,300		86,235		84,846		101,742		96,648		93,986		81,502
Mexico		23,666		25,841		27,742		26,222		29,254		28,727		26,834
Chile		25,158		26,013		27,220		29,102		32,252		30,258		28,236
USA		60,980		64,427		70,787		76,851		88,309		82,555		82,810
Operating Areas		513,815		527,444		541,361		567,953		603,776		596,254		569,443
Corporate Centre		26,019		31,449		20,093		17,200		14,175		13,230		16,373
Total Group		539,834		558,893		561,454		585,153		617,951		609,484		585,816

113

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, thereunto duly authorized.