#Connected
2017
Annual 
Report


Annual Report 2017
2
In 2017 we obtained excellent results the right way: through profitable growth             
Our success in 2017 shows that 
our way of doing business, and our 
focus on building loyalty, is creating 
a virtuous circle that delivers 
growth, profitability and strength
We are one of the most 
profitable and efficient banks in 
the world, allowing us to lend 
more to customers, increase 
the per share dividend and 
organically generate capital
 Picture
Ana Botín,
Group executive 
chairman of
Banco Santander	
  ATTRIBUTABLE PROFIT
(Millions of euros)
6,204
2016
6,619
2017
* +7.4% in constant euros
2017/2016
+7%*
Efficiency 
(cost-to-income)
47.4%
Return on tangible 
equity (underlying)
11.8%
Fully loaded
CET1 capital ratio
10.84%
NPL ratio
Balanced geographic diversification is
key to our stable and predictable growth
4.08%
MEXICO
7%
BRAZIL
26%
CHILE
6%
ARGENTINA
4%
SPAIN
15%
SANTANDER 
CONSUMER
FINANCE
13%
POLAND
3%
PORTUGAL
5%
UNITED 
KINGDOM
16%
OTHER 
COUNTRIES 
1%
UNITED
STATES
4%
 Main countries
 Santander Consumer Finance
* Including Popular (3%).
Contribution to underlying 
Group profit, %.


3
Annual Report 2017
            and a strong balance sheet, while helping people and businesses prosper 
Our leading positions in 10 core
markets, with a total population
of a billion people, provide us 
stability and new opportunities
 
Our scale, our diversification and 
the predictability of our business 
give us strong foundations 
on which to innovate
People
202,251
81%
employees believe 
that their colleagues 
behave in ways that 
are more simple, 
personal and fair
77%
of employees 
are engaged
Em
pl
oy
e
es
 w
h
o 
ar
e 
m
or
e 
m
ot
iv
at
ed
a
n
d 
c
o
m
m
it
t
e
d
..
.
17.3 (+13%) 
million loyal 
customers
25.4 (+21%)
million digital
customers
Customers
million
133
...
m
ak
e 
o
ur
 c
us
to
m
er
s
m
or
e 
sa
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sf
ie
d 
a
nd
 l
oy
al
...
16.6%
total shareholder 
return
..
.w
hi
c
h 
dr
iv
es
  
pr
o
fit
a
bi
li
ty
 
an
d 
su
st
ai
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ab
le
 g
ro
w
th
...
Shareholders
4.0
 million
+11%
cash
dividend
per share
growth
..
i
.
n
w
v
h
e
i
s
c
t
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 r
e
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i
c
n
o
 m
m
o
m
re
un
iti
es
.
2.1
Communities
million people
helped in 2017
44,862
scholarships 
granted
in 2017
1,295
agreements with 
universities
and academic institutions
in 21 countries
Figures excluding Banco 
Popular, except number 
of employees and data on 
shareholders.P


Annual Report 2017
4
Our purpose is to help people 
and businesses prosper
Santander contributes to the economic and social progress of the communities in which it is present
Our contribution to society
People
€12,047 million 
Personnel expenses1
€98 million
invested in employee training, with an 
average of 39.6 hours of training per employee
97%
of employees have permanent contracts
Customers
€848,914 million 
Loans outstanding (net)
8/10
Lending grew in eight out of the Group’s ten 
core markets, particularly household and 
business lending
>250,000
microentrepreneurs supported in Brazil and 
other countries 
Shareholders
€3,540 million2 
Total shareholder 
remuneration
€88,410 million
stock market value at year-end 2017, largest in 
the euro zone
€0.22
dividend per share, +7%3
Communities
€183 million 
Social investment 
€54 million
allocated to programmes and projects to 
support communities
€129 million
allocated to universities
Suppliers
€7,770 million 
Payments to suppliers
9,104
suppliers in the Bank's network   
95%
95% of the Group’s suppliers are local
Tax contribution 
€7,972 million 
Taxes paid
€4,137 million
corporate income tax   
€3,835 million
social security payments and other payroll 
taxes made by the Group, non-recoverable 
VAT and other taxes
1. From Group audited accounts.
2. Subject to the approval of the fourth dividend against the 2017 results by the board of directors and the shareholders’ meeting.
3. Adjusted for the July 2017 capital increase.


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Annual Report 2017
A responsible bank that helps address major global challenges: 
financial inclusion, job creation and sustainable growth   
A trusted partner
for SMEs
SMEs are the main driver of job crea­
tion. Santander has a comprehensive 
offering to help SMEs as they grow, 
which goes well beyond just a finan­
cial offering. In 2017 it was named by 
Euromoney magazine for the second 
consecutive year as the Best Bank in 
the World for SMEs.
See more on page 43 of this reportPic
The best company 
to work for
Santander is one of the three best 
banks to work for in the majority of its 
core markets. In 2017 it launched a new 
performance management model which 
places importance on the corporate 
culture and behaviours (40%) as well as 
on  business objectives (60%).
See more on pages 40-41 of this report
Transparency
For Santander, transparency goes 
beyond meeting legal or regulatory 
disclosure requirements. It means 
maintaining an open and fluid 
dialogue with all its stakeholders. 
This dialogue and the stable, lasting 
relationships it engenders allows us to 
be more responsive to relevant issues 
that can arise and to our stakeholders’ 
expectations.
See more on page 48-51 of this reportPicturePicture
Committed to
higher
education
Santander invests more in 
supporting higher education 
than any other private company 
in the world (according to the 
Varkey Foundation in cooperation 
with Unesco). The main areas of 
focus are access to education, 
job skills, fostering university 
student entrepreneurs and the 
modernization of universities. 
See more on page 49 of this reportPicture
Inclusive, 
sustainable 
growth
Santander promotes financial 
inclusion in order to support social 
and economic progress in the 
countries where it operates. The Bank 
promotes microfinance programmes 
in countries such as Brazil, Mexico 
and Argentina.
See more on pages 50 of this report
Santander is one of the ten most highly ranked banks 
in the world in the Dow Jones Sustainability IndexPict