Banco Santander Mexico, S.A.

Good evening, everyone, and thank you for joining Santander's 2025 results presentation. We are delighted to be joined by our executive chair, Anna Wotin, our CEO, Hector Gracie, and our CFO, Jose Garcia Cantera. We are going to have a short presentation with Anna leading the way. Anna, it's my pleasure to hand to you.

Thank you, Raul, and good evening, everyone. Welcome to our 2025 results presentation. So, alongside our strong results today, we're announcing the acquisition of Webster Financial Corporation, an important strategic step for the group. So, for that reason, today's presentation will follow a slightly different structure. First, Hector will kick off with an overview of our results. Then I will explain the transaction in detail, including the strategic and financial rationale and implications. And I will then wrap up with some closing remarks and now outlook for 2028. Hector, over to you.

Thanks, Anna, and welcome to our full year results presentation. This was another record year for Santander, with a customer base growing by 8 million new customers to 108 million. Our quarterly profit hit a new record, and with 14.1 billion in 2025, we have reported our best-ever annual results, driven by solid underlying growth across all our businesses. We achieved this by focusing on one transformation, making excellent progress towards a common operating model and simplifying our products. This has enabled us to improve our efficiency to almost 41% and to increase our ROTE post-81 to 16.3%. We have further strengthened our balance sheet ending the year at all-time high C81 ratio of 13.5%, reflecting our ability to generate capital organically. And finally, we once again delivered strong shareholder value creation with thin upload dividend per share growing by 14%. Our profits are up 12% year-over-year, and ex-Argentina up 15% year-on-year. We delivered strong growth in our top line, with revenue up 4% in constant euros, supported by customer activity across all our businesses. Fee income is up 9% in constant euros, supported by significant growth in customers and the network benefits we're capturing through our global businesses. We were well below revenue, down 1% in absolute terms, showcasing the positive effects of our transformation, and we delivered record net operating income of almost $37 billion. Our prudent approach to risk is also evident in our cost of risk, which ended the year at 1.15%, in line with our guidance for 2025. The combination of our global businesses with geographical diversification continues to drive profitable and resilient growth. CIB, wealth and payments delivered strong revenue growth underpinned by solid fee increases driven by network effects and enhanced capabilities. At the same time, while higher interest rates benefit our retail franchises in Europe, other parts of the group perform better with lower rates. Our consumer business is a great example of this, with NII up 5% year-on-year. In addition, our strong customer focus and product track record in active balance sheet management is playing the resilient group NII performance, which, excluding Argentina, grew 3% year-on-year. At the same time, we are beginning to see the benefits of our global platforms. Our global and diversified model allows us to both improve customer experience and efficiency, and the ability to allocate capital in a dynamic way across global businesses and geographies, something very few can replicate. Combined with our capital discipline and focus on profitability, this is driving higher ROTE with the group and most of our global businesses above the targets we set for 2025. This is despite adverse macro on a net basis compared to our base scenario. Our consistent execution has driven positive operating leverage. The key driver of this was one transformation driven by simplification and automation, which resulted in 265 basis points of efficiencies, followed by our global businesses, which contributed 108 basis points, and our global tech capabilities with another 87 basis points. And there is still much more to come. We see further upside as we roll out common operating model and tech platforms across retail and consumer, while we also capture network effects across our global businesses, particularly on wealth and insurance, CIB and payments. And very importantly, all this is something that is entirely under our control. In retail, one transformation improved our operating leverage by combining the deployment of our global platforms with a strong local execution and network benefits. We grew active customers by around 2% while reducing our cost to serve by around 4%, closing 25% with a 39% cost-to-income ratio and almost 80% post-81 ROTE, exceeding the objectives we set for the year. This performance reflects progress on the transformation of both the operating and the business models in parallel and the beginning of tech platform deployment. First, we are rolling out common business models across the countries through our global businesses. We are moving towards common operating models by simplifying products and customer journeys. And third, we are making good progress on automation through our global platforms with Gravity and OneApp now deployed across green markets. As a result, retail profit grew 9% year-on-year with cost declining in real terms. In consumer, we made progress in the transformation by the scaling of OpenBank as our global consumer platform. We are seeing a strong growth in our digital bank across key markets, including the U.S., Mexico, and Germany, attracting strong customer and deposit inflows and supporting our deposit gathering strategy to lower funding costs. At the same time, we continue to expand and consolidate partnerships offering global best-in-class embedded finance solutions with leading platforms and OEMs. CINIA continues to scale through new strategic partnerships, including Amazon and Apple, reaching more than 2 million customers and expanding installment and co-branded solutions across Europe. Finally, a major milestone in our transformation was the integration of Santander Consumer Finance and Open Banking Europe into a single legal entity under the Open Bank brand, simplifying our structure and enabling a more consistent and seamless experience for our customers and partners. As a result, consumers delivered strong financial performance in 2025, with profit growing 8% year-on-year, supported by solid NII growth and improved cost of risk. Across wealth, CIB, and payments, we are driving double-digit fee growth, through the network effects and global platforms. In CIB, we are focused on our markets where we have invested to build a world-class franchise to better serve corporate and institutional clients across all the footprint. These investments resulted in another record year in revenue with high single-digit fee growth while maintaining our low risk profile. We are building the best wealth and insurance manager across Europe and the Americas. supported by our leading global private banking platform and the best-in-class products. Wealth profit was up 27% in 2025 on the back of strong commercial activity and double-digit fee growth. Looking ahead, insurance is one of the biggest upside for Fees in the Group. In payments, we hold a unique position as we operate on both sides of the value chain. We're capturing scale and seizing a growing opportunity through our global platforms, principally as an enabler to group platforms, but increasingly also in the open markets. In 25, payments volume was on 9% and Pagonex EBDA margin close above 34%. Looking ahead, CIB, wealth and payments, will remain a key growth engine and key drivers of fee growth for the group. Our strong operational and financial performance is driving higher profitability and double-digit value creation. POS81 Rote reached 16.3%, up nearly one percentage point year-on-year, reflecting our disciplined approach to capital allocation. Pre-81, we are above our original target of 17% ROTE set at the last investor day. Earnings per share rose 17%, supported by solid profit generation and lower share count following the buybacks. As a result, TINA plus cash dividend per share grew by 14%. we maintain our upgraded target to distribute at least 10 billion euros to our shareholders through share buybacks for 2025 and 2026, subject to the regulatory approvals. The Board approved a new buyback program of up to 5 billion, including 3.8 billion generated from the sale of Poland and 1.8 billion against the second half 2025 results. As the ECB has already granted the corresponding approval, the program will begin tomorrow. Moving on to capital, over the past few years, we focused on improving capital productivity and accelerating organic capital generation. Our fully loaded CET1 ratio increased 70 basis points in 2025 to 13.5%, well above our 12-13 target supported by record organic capital generation after investing in profitable growth, remunerating our shareholders, and absorbing regulatory impacts. At the beginning of January, we completed the disposal of Santander Polska, a 2.2 price to tangible book, generating around 95 basis points of capital. This excess capital has been deployed with discipline in line with our capital hierarchy. First, we used half of it to accelerate the delivery of our share buybacks within our target of at least $10 billion for 2025-2026. we deployed some of our excess capital into the acquisition of TSV, which will improve our UK ROTE to 16% by 2028. Given our improving profitability and strong momentum, our excess capital is likely to build further in 2026, which brings us to the Bolton acquisition of Wester. Anna, over to you.