in the U.S.

Santander in the U.S.

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Santander is a leading global bank with origins going back to 1857.

We are one of the largest banks in the eurozone, the leading financial franchise in Latin America and one of the top 25 retail banks in the United States. We have 102 million customers and over 14,000 branches, the largest network of any international bank.

Our international success has been built on a sustainable strategy. Geographic diversification, a focus on retail and commercial banking, disciplined use of capi-tal, financial strength, efficiency and prudent risk management are the pillars of Santander’s business model.

Santander first entered the United States in 1968 and listed on the New York Stock Exchange in 1987. In 1991, Santander formed an alliance that lasted five years with First Fidelity Bank Corp, becoming its largest shareholder. In 2006, Santander entered the consumer finance business by acquiring Drive, a leading car financing company based in Dallas. Today, this business is called Santander Consumer USA.

The acquisition of Sovereign Bank in 2009 allowed Santander to become a sig-nificant player in the northeastern U.S. The combination of the Group’s interna-tional best practices, resources and capabilities with local knowledge and exper-tise is the basis of our success.

As our corporate claim states, we want to be the “Bank for your ideas” for our U.S. customers. We want to offer them our talent and resources to continue making their goals a reality. We strive to be an active partner for our communities.

Our global commitment to communities is demonstrated by our support for higher education through Santander Universities, a unique alliance with 1,020 universities in 20 countries. We introduced Santander Universities in the U.S. in 2009. Today, we are partners with 26 American universities and fund over 950 scholarships a year.

I am optimistic about our future in the U.S. We are pleased to rebrand Sovereign Bank as Santander, one of the most valuable global financial brands. The new name underlines our strong commitment to our customers, shareholders and communities in the U.S.

Emilio BotínChairman

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Rest of Europe

5%

United Kingdom

13%

Portugal

1%

Germany

5%

Spain

8%

Poland

5%

Rest of Latin America

3%

Chile

Argentina

5%

Brazil

25%

6%

12%Mexico

United States2

12%

Santander:A Global Financial Leader

Santander is a leading global retail and commercial bank. Its business is geographically diversified, with mature and emerging markets accounting for 45% and 55% of profit, respectively.

The Bank is among the top 20 financial institutions worldwide by market capitalization and is one of the best capitalized banks in the world, with an 11.1% capital ratio1.

Santander’s international structure is based on subsidiaries that are autonomous in capital and liquidity, some of which are listed. Each subsidiary is governed by local regulations and customer deposits are protected by local insurance funds.

Santander’s geographic diversification and commercial banking model provide substantial recurring results and continued growth for the global organization. The Bank has 102 million customers and 14,680 branches, the largest network of any international bank. Santander is also one of the most efficient banks in the world, with a cost-to-income of 46.1%.

2. Santander’s presence in the United States comprises: Santander Bank (retail and commercial banking - Northeast); Santander Consumer USA (auto finance - Texas); Banco Santander International (private banking – Florida); Banco Santander (wholesale banking – New York); Santander Bancorp (retail banking – Puerto Rico).

3. As of June, 2013

1. Basel II, Tier 1 Common ratio, as of June 30, 2013

Geographic distribution of Santander’s profit3

Additional markets where the Bank operates: Peru, Uruguay, Norway, Sweden, Finland, Denmark, Holland, Belgium, Austria, Switzerland and Italy

Ten main markets

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A 1907 Banco Santander board meeting. From left to right: Ramón de la Riva Hernán, Enrique Vidal, Álvaro Flórez Estrada, Emilio Botín López, Leocadio González Rugama and José Calderón García.

1857Banco Santander foundedOn May 15, 1857, Queen Isabella II signed a royal decree authorizing the merchants of Santander to establish an issuer of banknotes under the name Banco de Santander. The first headquarters opened on August 20, 1857, with a staff of seventeen.

1875 Banco Santander becomes a credit society In 1874, the Bank of Spain was granted a monopoly over banknote issuance for the entire country. Banco de Santander was offered the option of merging with what then became the central bank but the Bank’s directors decided to follow a different path and, one year later, turned the company into a credit society.

Santander 1857–75

Banco Santander1857–2013

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The Bank’s first foothold in Madrid was number 37 of the emblematic Calle de Alcalá, in the heart of what was then the city’s financial district.

Santander 1942–57

1942First Madrid officeSantander opened its first office in Spain’s capital city, on Calle de Alcalá, in the financial district.

1947 Santander goes to the AmericasHavana was the location for Santander’s first office in the Americas. In 1956, the Bank extended its reach to Mexico, followed by branch openings in São Paulo, Caracas, Puerto Rico, Montevideo, and Buenos Aires over the decade.

1955 First European officeSantander opened its first London office at number 38 Lombard Street, in the heart of the City. Years later, the Bank moved to Santander House at 100 Ludgate Hill.

1957 One hundred years, one hundred branchesOn the occasion of the Bank’s centenary, the board decided to double its capital stock to two hundred million pesetas. This made Santander Spain’s sixth-largest financial institution. The Bank also reached the milestone of 100 branches that year.

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Santander 1963–87

1963First acquisition in Latin AmericaIn 1963, the Bank became the first Spanish financial institution to acquire a Latin American bank when it took over Banco del Hogar Argentino and renamed it Banco Santander Argentina.

1976–77 A branch in New York and a bank in Puerto Rico Santander’s first foothold in New York was located in Mies van der Rohe’s iconic Seagram Building. This office was upgraded to a full branch in 1977. Santander acquired a bank in Puerto Rico in 1976.

1983 A pioneer of technological changeThe bank undertook major initiatives to transform and modernize its operations. Its board and management moved to Madrid and operations were computerized.

1986 Emilio Botín appointed chairmanIn November 1986, Emilio Botín, until then CEO, was appointed chairman. This marked the start of a new growth cycle for the Bank, positioning it for international growth.

1987 Banco Santander is listed on the New York Stock Exchange

Banco Santander was first listed on the NYSE on July 30, 1987. The traded volume that day was 476,000 American Depositary Receipts (ADRs).

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The Altino Arantes building, former headquarters of the Bank in São Paulo (Banespa).

1989–93 A milestone in Spanish banking history and a new imageFrom 1989 to 1993, Santander experienced spectacular growth. The key to its success was the “Supercuenta”, a deposit account, which revolutionized the market and introduced genuine competition. Branch offices changed their image to attract new customers. The main logo—a stylized f lame reminiscent of Santander’s initial “S” set against a metallic red background—conveyed a sense of determined leadership.

1990 Number two in Puerto RicoSantander acquired the Caguas Central Federal Savings Bank and became the second-largest bank in Puerto Rico.

1991 Alliance with First Fidelity Bank Corp.The purchase of close to 30% of First Fidelity between 1991 and 1994 was Santander’s first major transaction in the mainland United States. In 1995, First Fidelity merged with First Union Bank to become First Union Corporation. This stake, sold in the second half of the nineties, gave Santander valuable knowledge about the U.S. market.

1994 Leadership in Latin AmericaNew acquisitions between 1994 and 2000—including Grupo Financiero Serfin in Mexico and Banco do Estado de São Paulo in Brazil—built up the Bank’s presence in Latin America, making Santander the leading financial franchise in the region.

Santander 1989–94

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Santander 1994–2002

1994Santander becomes Spain’s largest bankBanco Español de Credito (Banesto), one of Spain’s leading banks, was brought under government administration in 1993. Santander acquired this distressed institution in 1994.

1999 The rise of a giantThe Banco Santander and Banco Central Hispano merger brought together two of Spain’s four modern banks. The deal was the first major European banking consolidation after the launch of the euro.

2002 Santander Group City is bornThe Bank’s rapid growth and the need to support its international business prompted the consolidation of all head offices functions at one location. Construction of Santander Group City began in 2002, and was completed two years later. The Group’s headquarters are located in Boadilla del Monte, 15 kilometers from Madrid. The innovative and constantly evolving green business-campus provides a workplace for nearly 6,700 employees.

The Santander Group City in 2012, from an aerial photograph by Roland Halbe.

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Santander 2004–07

2004Arrival in the UK: The acquisition of AbbeyThe Abbey takeover radically transformed Santander, as it opened up to the British market, reinforcing its presence in Europe. This transaction placed Santander among the world’s top ten banks by market value and made it the fourth-largest in Europe and the biggest in the eurozone. In 2008, Santander became the third-largest bank in the UK with the acquisitions of Alliance & Leicester and the deposits and retail network of Bradford & Bingley. The brand change to Santander took place in 2010. Santander now has more than 26 million customers and nearly 1,200 branches in the UK.

2005 Santander Group reaches 10,000 offices and 66 million customers worldwide

2006Acquisition of Drive In 2006, Santander acquired 90% of the Dallas-based U.S. auto finance company Drive Financial, now called Santander Consumer USA (SCUSA). It ranks among the largest U.S. auto lenders. In 2012, three leading private equity firms invested $1 billion in a 25% stake, valuing the company at $4 billion. In 2013, SCUSA and Chrysler Group launched Chrysler Capital, a new private label, full service program for Chrysler dealers.

The Bank’s takeover of Abbey Nationalwas completed on November 12, 2004, when Santander’s stock (paid to former Abbey shareholders) became tradeable on the London Stock Exchange.

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2007 150 years, one brandOn its 150th anniversary, the Bank brought all its businesses under the Santander brand, a global brand for the strengths and values that have propelled the Bank to its leading position in the eurozone and Latin America and placed it in the top ten in the world by market capitalization and profit.

The largest takeover in banking historyBanco Santander, the Royal Bank of Scotland and Fortis joined forces to buy ABN AMRO’s assets for ¤71.1 billion, the largest transaction in banking history. As part of the transaction, Santander acquired Banco Real —thus becoming one of the three largest financial groups in Brazil— and Antonveneta in Italy, which was sold that same year.

2009 Acquisition of Sovereign BankSantander purchased 20% of Sovereign Bank in 2005 and three years later increased its stake to 100%, completing its entry into the U.S. retail banking market through a network of more than 700 branches in nine northeastern states.

Santander 2007–09

In 2009, Santander completed the acquisition of Sovereign Bank, a retail bank present in Connecticut, Delaware, Massachusetts, Maryland, New Hampshire, New Jersey, New York, Pennsylvania and Rhode Island.Above, Sovereign Bank branch located in North Atherton, PA.

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2009 Top ten American universities joined Santander’s programThe core component of Santander’s corporate social responsibility policy is its commitment to higher education through Santander Universities. In 2012, the program had agreements with 26 universities in the U.S. and provided funding for over 950 scholarships.

2011 Expansion into PolandSantander took over Poland’s third-largest bank, Bank Zachodni WBK. The same year, the Group acquired the Scandinavian SEB group’s retail banking business in Germany. Later, the Group also acquired Poland’s Kredyt Bank.

2012 “Best Bank in the World” for the third time Euromoney, the prestigious banking and finance magazine, awarded Santander the accolade of “Best Bank in the World” for the first time in 2005, and again in 2008 and 2012. The magazine highlighted Santander’s geographic diversification and subsidiary model as key factors in this recognition.

Santander 2009–12

Santander Universities was launched in 1996 in Spain. By 2012 it had more than 1,000 agreements with universities in 20 countries. The program encourages international exchanges of students and teaching staff and promotes innovation and entrepreneurship.

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2013

Santander, the most sustainable bank in the worldAwards given by Financial Times and the International Finance Corp, a World Bank agency, recognize Santander’s dedication to higher learning, via its involvement with universities, as a positive force for economic and social development.

U.S. operations unified under the Santander brand Santander in the United States is made up of five businesses: Sovereign Bank, N.A. (Northeast U.S.); Santander Consumer USA (Dallas, TX); Banco Santander International (Miami, FL); Santander Bancorp (Puerto Rico), and Banco Santander (New York, NY). Sovereign Bank changes its brand to Santander in October.

Santander 2013

Team Members show their pride at the first annual Santander US Convention in September 2012.

Published bySantander Bank, N.A.

Produced and edited byTurner

Editorial coordinator Nuria Martínez Deaño

Graphic design Studio Fernando Gutiérrez

WatercolorsMatthew Cook

PrintingGráficas Palermo S.L.

© Santander Group, 2013

Santander