Banco Santander, S.A.

Good morning everyone and thank you for joining Santander's first half 2026 results presentation. Today's presentation will follow the usual structure. First, Hector will talk about our results with a special focus on the performance of our global businesses. Jose will then cover the financial results in more detail. Finally, Hector will close with the outlook before we open the line for Q&A. Before we start, I would like to highlight that this is the first quarter in which TSB is included in our results after the acquisition closed on the 30th of April. Our underlying metrics exclude the impact of Poland and TSP integration-related restructuring costs to provide a clearer view of the underlying trends. With that, Hector, over to you.

Thanks, Rahul, and good morning to everyone. Q2 was another record quarter for Santander, demonstrating again the strength of our strategy and the resilience of our business models. Our quarterly profit hit a new record of $3.8 billion, making H126 the best half ever, driven by strong revenue growth across global businesses and our growing franchise of 182 million customers, up by more than 12 million year-on-year, including the 4 million TSV customers we welcomed to the group in May. We achieved this while executing one transformation, making excellent progress towards a simpler and more integrated model. This is translating into tangible results, with efficiency improving by 3 percentage points and underlying ROTE increasing to 15.6%. Our balance sheet remains very solid, with robust credit quality and a strong CET1 ratio of 14%, which includes the impact of TSB. In this context of high capital levels, underlying ROTE adjusted for excess capital is close to 17%. All of this continues to translate into strong shareholder value creation with TINA productivity per share growing 19%. Before I move on, let me make a brief comment on TSB. As already mentioned, TSB closed on April 30th, only contributing with two months of results, so the impact on year-on-year trend is limited. Jose will provide more detail where relevant later in the presentation. Our P&L remains very solid. with underlying profit growing 14% year-on-year. We delivered strong total growth with revenue of 6% in costs and euros supported by NII increasing 6% on the back-of-margin resilience and profitable volumes growth as well as record fees of 7% rising across all businesses and countries. This reflects structural trends driven by deeper customer relationships and stronger connectivity across the group. Revenue grew while we reduced costs once again, showcasing the possibility and the positive effects of our transformation. LLPs were affected by Argentina, reflecting sector-wide trends in the country. Excluding Argentina, provisions were broadly stable year on year. Finally, in H1, we recorded 245 million gross impact related to motor finance in Open Bank Europe, most of it booked in Q1. All in all, As we have shown over time, our results are sustainable and less volatile than peers, even in challenging environments. What we are seeing again this quarter clearly reflects the strategy we presented at Investors Day. Our unique business model combines global and in-market scale with customer focus and diversification across Europe and the Americas. and the model keeps delivering consistent results. Higher revenue, lower cost, improved profitability and stronger shareholder value creation. Now, let me talk about our customers. Three structural trends continue to strengthen the quality for our results. First, we are attracting more customers. Second, customers are doing more with us. Active customers are growing faster and fees per active customer increase by 3%, reflecting higher engagement and broader use of our products and services. Third, we continue to improve our efficiency across the group. Together, these three trends make our profitability improvements increasingly sustainable over time. As you can see, we continue to deliver on our transformation, driving operational leverage for structural improvements that are under our control. Simplification and automation have delivered more than one percentage point of efficiencies. Our network businesses are generating strong positive jobs, and our global technology platforms continue to improve productivity while we start to capture benefits from AI. Our five global businesses continue to deliver strong and balanced growth, driven by customer activity, diversification, and scale. Retail and open bank illustrate the power of our model. Revenue grew 4% and costs fell by 3%, driving higher profitability through operational leverage. At the same time, CIB, wealth, and payments demonstrate the power of our global capabilities and connectivity, driving strong revenue growth and improving efficiency. Together, these businesses combined with our focus on disciplined capital allocation are driving high returns and solid progress towards our targets. Let's now look at each of them. In retail, we continue to transform our model, combining cutting-edge technology with the expertise and proximity of our teams to deliver the best customer experience. Our customer interaction platform is live in five markets and is ready to roll out in Spain. It helps us to personalize customer interactions at scale, improving conversion and strengthening customer privacy. In commercial, our new model is delivering excellent results in Spain, with revenue up 17% and cost down 3% year on year. We are better aligning our service model with customer needs, improving their experience while reducing our cost base. Using advanced analytics, we identify high-growth companies and connect them with more valuable solutions, deepening relationships and capturing a greater share of their financial needs. Following this success, we are now rolling out the model across Brazil, Mexico, UK, Chile and Portugal. As a result, retail fees grew 6%, cost per active customer declined 6%, and productivity keeps improving. Overall, retail's underlying profit grew 12% year-on-year, driven by strong operational leverage, while asset quality remained robust, with cost of risk improving, excluding Argentina. As you probably know, Webster also reported another strong quarter yesterday, demonstrating again the quality of the franchise with a 17% rotting, excluding transaction costs and continued volume growth. Overall, these results were in line with market expectations. Looking ahead, we expect profitable growth to continue as we scale our model, deepen customer relationships, and capture additional efficiencies from TSB and Webster. This quarter, we close the acquisition of TSV, a highly strategic transaction, and we have taken the first steps in the integration process, which is progressing according to our plan. It adds scale in the core market, strengthens our funding needs through a high-quality deposit base, and enhances our risk profile through a low-risk mortgage portfolio. The combination accelerates the execution of our strategy, enabling us to simplify the business Capture significant efficiencies and improve the profitability of Santander UK. This will help us deliver an ROTE of around 16% in Santander UK by 28, supported by at least 400 million of scenarios. With OpenBank, we are building a more integrated, scalable and efficient business supported by our global digital platform. We are broadening our customer proposition to become our customers' primary digital bank. In mobility finance, we are expanding beyond traditional auto lending with new solutions, while we continue to scale our embedded finance business through open bank pay, which already serves more than 2.6 million customers. At the same time, our focus on funding optimization keeps supporting profitability through significant cost savings, especially in the U.S. This is already translating Thank you very much. Looking ahead, we expect profitability to improve as we continue to scale the business, optimize funding, and deliver further efficiencies. In CIB, we continue to build a world-class business for our corporate and institutional clients, leveraging the strength of our global network. We are now moving from building capabilities to scaling our franchise, translating them into stronger client relationships. What differentiates us is the connectivity to our franchise, bringing together Santander capabilities to serve our clients in a much more integrated way. A good example is a client aerospace sector, where commercial banking, CIV, and private banking have worked together throughout the company's growth journey, from day-to-day banking to financing, advising on the latest capital raise and connecting it with private investors. At the same time, we continue to transform our operating model Through global platforms and AI delivering high productivity and better customer service. For example, our automated pricing in global markets allows us to serve more clients and improve funding decisions. Even in a more challenging environment, strong client activity continues to drive profitable growth as we focus on efficiency and capital discipline. As a result, profit grows 17% year on year while maintaining one of the best efficiency ratios in the sector and originating new business at a ROT of around 23%. In wealth, we continue to deliver solid growth while executing our strategy, leveraging our global scale and capabilities. In private banking, we're strengthening our advisory proposition for ultra-high network and family office clients, while leveraging our international franchise to connect clients with the best of Santander globally. As a result, Customer assets and liabilities grew 15% and client cross-border referrals increased by more than 20% year-on-year. In insurance and asset management, we are increasingly operating as one integrated platform to deliver a more differentiated value proposition. Insurance is one of the biggest growth opportunities across the group. We continue to strengthen our position in Spain and Portugal while extending our model to other markets such as Brazil, Mexico and Chile. We have integrated life and pensions in Brazil and Portugal. In health, we continue to roll out the innovative solutions such as OneCare in Portugal and Saúde Compara in Brazil. This is already supporting double-digit premium growth across our core insurance businesses. Together, these initiatives are making our business more scalable, more resilient, and increasingly fee-based. As a result, profit rose 19% driven by strong commercial momentum across all our business lines. Finally, payments, our high-growth platform business. We continue to combine scale with innovation, strengthening our position across the global payments value chain. In GetNet, we launched the first agentic payments use case in Latin America, positioning us at the forefront Thank you very much. On the financial side, with revenue of 17%, EBITDA margin improving to 33%, and profit increasing fourfold year-on-year, resulting on a Rule of 40 score of about 50%. Overall, the business keeps building strong momentum with clear upside as we continue to scale. Our strong operational and financial performance continues to drive capital generation, higher profitability, and double-digit value creation. Our CET1 ratio rose to 14% on track to achieve our year-end target comfortably above our 12 to 13 operating range. Underlying routing improved to 15.6% and is close to 17% at normalized CET1 levels with further upside from M&A and One Transformation. Underlying earnings per share grew 20% and TINA plus cash dividend per share increased 19% Reflecting strong profit generation and the impact of buybacks. We have received the approval from the ECB for a new buyback program for up to $1.8 billion against 26 results. Once the corresponding corporate approvals have been obtained, total share buybacks, including the program currently underway, will reach around 9 billion euros, close to our commitment of distributing at least 10 billion euros for T25 and T26. With that, I will now hand it over to Jose, who will take you through the financials in more detail.

Thank you, Hector, and good morning, everyone. I will now take you through the group's P&L and capital performance in more detail. But before I begin, let me make two brief points. First, as Hector and Raul mentioned, the Group's P&L includes two months of TSP's results, following its consolidation in May. I will only refer to its impact, where material. Second, as usual, we present growth rates in both current and constant euros. This period, the difference was not relevant. Turning to performance. As Hector mentioned, we are yet again delivering record results in the first half, with solid commercial activity and structural cost efficiency generating strong operational leverage. Revenue grew 6% on the back of a solid business activity while costs declined even after incorporating TSP. Loan loss provisions were impacted by portfolio deterioration in Argentina reflecting sector trends in the country. Excluding Argentina, provisions were broadly stable year on year. The other results line includes motor finance provisions in Open Bank Europe of around 245 million, largely booked in the first quarter. As a result, profit grew 14% year-on-year in constant euros, keeping us firmly on track to deliver our guidance of more than 14.1 billion of profit in 2026, excluding M&A. Total revenue increased 6% year-on-year in line with the target we set for 2026. This growth was underpinned by deeper client relationships, higher levels of engagement, and a total of 12 million new customers over the last 12 months. All global businesses contributed to revenue growth, which was mainly supported by another record period in CIB, Up 16%, backed by growing client flows across business lines with a notable acceleration in global banking fees, in retail on the back of a stronger customer engagement reflected in solid NII and fees, and in open bank which performed well supported by higher net interest income and fees. Payments and wealth did well in fee-generating activities Customer inflows in wealth and strong volumes overall. Fee growth continued to outpace NII, in line with our guidance, reinforcing the quality and diversification of our revenue base. The group's net interest income increased 6% year-on-year. The vast majority of our net interest income comes from retail and open bank, At this time, CIB also contributed significantly to the overall growth, supported by capital-efficient high return activities mainly in global markets. Additionally, NII was resilient in retail across most countries, driven by volumes and active balance sheet management. Open Bank delivered solid NII growth, supported by higher volumes and margins, both in Europe and South America. On a quarter-on-quarter basis, net interest income was up 3%, excluding TSV, for similar reasons particularly in retail in Spain and Chile. By country, Spain delivered a particularly strong quarter, with NIA up 8%, versus the first quarter, driven by solid commercial momentum, improving margins, and active partnership management. Brazil NII grew 2%, both quarter-on-quarter and year-on-year, even as interest rates are normalizing more slowly than initially expected. All in all, this reflects a stronger and more resilient NII profile than anticipated in investor-day guidance, as the benefits from higher-for-longer rate environment in most markets more than upset the more moderate contributions from Brazil. Net fee income increased 7% year-on-year, supported by customer growth, increased activity, and a better mix towards higher value-added products, driven by our network, businesses, and one transformation. This is visible across the group. Retail rose 6%, with solid performances widespread across our footprint, backed by customer growth. Open banks fees increased 6%, especially in Europe and Brazil, Thank you very much. We saw 8% growth in payments, driven by high activity levels across all business lines, with total payment volumes increasing 10%. Quantum formation remains a key driver of our profitability improvement, leveraging our global platforms and connectivity to deliver operational leverage. This is reflected in our efficiency ratio, which improved year-on-year to 42.8%, supported by strong underlying business dynamics, with revenue increasing and cost declining 1% year-on-year, down 5% in real terms. In retail and open bank, which are leading our transformation and represent 75% of our cost base, cost declined by 3%, Even after incorporating TSB, and as we continue to roll out our global platforms, and revenue grew 4%, resulting in very positive operating jobs. In our network businesses, CIB wealth and payments, costs grew below total revenue on fee income, reflecting targeted investments in capabilities to drive capital-light growth, maintaining high recurrency levels. This excellent performance resulted in an 11% rise in net operating income, up from already very high levels last year. Looking ahead, we remain on track to reduce costs despite inflationary pressures. One transformation and our targeted cost management actions are the two levers that remain firmly within our control. Our balance sheet risk profile remains low, with some credit quality across our footprint, even in a more complex environment, supported by prudent risk management and resilient labor markets in general. Having said that, metrics in the first half continue to be impacted by Argentina, reflecting sector-wide trends in the country. However, the cost of risk declined quarter on quarter, showing the first signs of stabilization as the impact of lower new production begins to feed through. Excluding Argentina, the group's underlying credit quality remained very solid. Loan loss provisions were broadly stable year on year, and cost of risk improved two basis points, even after absorbing less favorable FX movements. This reflects the resilience across most of our markets, which more than offset the pressure we are beginning to see from a slower-than-expected rate normalization in Brazil, particularly in corporates and SMEs. Our non-performing load ratio remained low, as the impact from Argentina was broadly offset by the contribution from TSB. Our NPL portfolio has collateral guarantees and provisions that account for almost 90% of its total exposure. Retail and consumer represents over 90% of the group's loan loss provisions. In retail, cost of risk improved, excluding Argentina, with solid performances in key markets such as Spain and Brazil. In open bank, cost of risk was stable, even with the impact of Argentina's supported by continued strong trends in the U.S. CIB was affected by a limited number of single names in Europe and Brazil. As of today, we are not seeing a significant deterioration in employment and credit quality remains stable. As long as labor markets remain solid, we would not expect material impact in credit quality as resilience across most developed markets is expected to keep offsetting pressures in Brazil and challenges in Argentina showing the benefits of diversification. Moving on to capital, we delivered another quarter of a strong capital generation. Our CT1 ratio stood at 14% after absorbing the 55 basis point impact from TSV. Excluding this impact, the CT1 ratio increased by 20 basis points, demonstrating once again our ability to generate capital while investing in profitable growth. We generated 27 basis points of net organic capital in the quarter, driven by disciplined capital allocation to high return opportunities, with a new business roti of around 21%, and by a strong contribution from our risk transfer initiatives, which offset 31 basis points of risk-weighted asset growth. This strong capital generation keeps us on track to end the year in line with our 12.8% target, after absorbing the impact from Webster in the second half of the year and further regulatory impacts during the rest of this year, leaving us close to the upper end of our 12 to 13% CT1 operating range. Hector, back to you.