8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 28, 2020

SANTANDER CONSUMER USA HOLDINGS INC.

(Exact name of registrant as specified in its charter)

Delaware (State or other Jurisdiction of Incorporation)	001-36270 (Commission File Number)		32-0414408 (IRS Employer Identification No.)
1601 Elm St. Suite #800 Dallas, Texas (Address of Principal Executive Offices)		75201 (Zip Code)

Registrant’s telephone number, including area code: (214) 634-1110

N/A

(Former name or former address if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act

Title of each class	TradingSymbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	SC	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On April 28, 2020, Santander Consumer USA Holdings Inc. and subsidiary (the “Company”) issued a press release announcing its financial results for the quarter ended March 31, 2020. Copies of the Company’s press release and an investor presentation for the quarter ended March 31, 2020 are attached hereto as Exhibits 99.1 and 99.2, respectively, and incorporated herein by reference.

Note: Information in this report (including Exhibits 99.1 and 99.2) furnished pursuant to Item 2.02 shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section.

Item 9.01. Financial Statements and Exhibits.

Exhibit No.Description

Exhibit 99.1 Press Release of Santander Consumer USA Holdings Inc., dated April 28, 2020

Exhibit 99.2 Presentation Materials of Santander Consumer USA Holdings Inc., dated April 28, 2020

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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 hereunto duly authorized.

Dated: April 28, 2020 SANTANDER CONSUMER USA HOLDINGS INC. By: /s/ Christopher Pfirrman             Name: Christopher Pfirrman Title: Chief Legal Officer

EX-99.1

Exhibit 99.1

Santander Consumer USA Holdings Inc. Reports First Quarter 2020 Results

Loss of $4 Million and Nearly $7 Billion in Originations in the First Quarter of 2020

Dallas, TX - April 28, 2020 - PRESS RELEASE

Santander Consumer USA Holdings Inc. (NYSE: SC) (“SC” or the “Company”) today announced net income for the first quarter ended March 31, 2020 ("Q1 2020") of $(4) million, or $(0.01) per diluted common share. The quarter included $442 million of incremental allowance for credit loss primarily driven by macroeconomic factors and COVID-19, approximately $0.81 per diluted common share.

The Company has declared a cash dividend of $0.22 per share, to be paid on May 18, 2020, to shareholders of record as of the close of business on May 8, 2020.

Management Quotes

"During this unprecedented time, we at Santander Consumer implemented a series of important actions to assist our employees, customers and communities. More than ninety-five percent of our employees now have the ability and are working from home, we launched a firm wide emergency paid leave program and provided supplemental pay to front-line customer support employees. For our customers, we have expanded payment deferrals, implemented late charge waivers and lease extensions, and temporarily suspended involuntary repossessions. For our communities, we have donated $3 million to organizations serving vulnerable populations hardest hit by the crisis. I’m proud of our employees for maintaining course during these challenging times and being available for our customers affected by the pandemic. Our technology team deserves particular appreciation as their efforts allowed us to set up teams promptly to help employees work from home," said Mahesh Aditya, SC President and CEO.

Fahmi Karam, SC Chief Financial Officer, added, "We entered this period of uncertainty from a position of strength with significant liquidity, strong loan loss reserve levels and excess capital. SC demonstrated continued access to liquidity, obtaining significant funding during March. Subsequent to quarter end, we were one of the first ABS issuers to execute a transaction since the beginning of the pandemic, issuing approximately $1 billion in securities. During the quarter, we added $442 million in reserves due to macroeconomic factors and COVID-19. These reserves, combined with our previously announced estimate for day one CECL impact of $2 billion, increase our Q1 allowance ratio to nearly 18%. As of quarter end, our CET1 ratio was 13.8%, following our $450 million tender offer. We remain committed to our long-term objectives of serving our customers and dealers while increasing shareholder value."

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First Quarter of 2020 Highlights (variances compared to first quarter of 2019 (“Q1 2019”), unless otherwise noted)

•Total auto originations of $7.0 billion, down 1%

◦Core retail auto loan originations of $2.3 billion, down 12%

◦Chrysler Capital loan originations of $2.6 billion, up 7%

◦Chrysler Capital lease originations of $2.0 billion, up 3%

◦Chrysler average quarterly penetration rate of 39%, up from 31%

◦Santander Bank, N.A. program originations of $1.1 billion

•Net finance and other interest income¹ of $1.1 billion, up 1%

•30-59 delinquency ratio of 8.3%, down 10 basis points

•59-plus delinquency ratio² of 4.6%, up 40 basis points

•Retail Installment Contract (“RIC”) gross charge-off ratio of 15.5%, down 400 basis points

•Recovery rate of 50.1%, down 580 basis points

•RIC net charge-off ratio³ of 7.7%, down 90 basis points

•Troubled Debt Restructuring (“TDR”) balance of $3.5 billion

•Return on average assets of (0.03)%, down from 2.20%

•$2.1 billion in asset-backed securities “ABS”

•Expense ratio of 1.9%, down from 2.1%

•Common equity tier 1 (“CET1”) ratio of 13.8%, down from 15.8% as of March 31, 2019

¹Includes Finance receivables held for investment, Finance receivables held for sale and Leased vehicles.

²Delinquency Ratio is defined as the ratio of end of period delinquent principal, over 59 days, to end of period gross balance of the respective portfolio, excludes finance leases.

³Net Charge-Off Ratio stated on a recorded investment basis, which is unpaid principal balance adjusted for unaccreted net discounts, subvention and origination costs.

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Conference Call Information

SC will host a conference call and webcast to discuss its Q1 2020 results and other general matters at 9:00 a.m. Eastern Time on Tuesday, April 28, 2020. The conference call will be accessible by dialing 888-394-8218 (U.S. domestic), or 323-701-0225 (international), conference ID 6666996. Please join 10 minutes prior to the start of the call. The conference call will also be accessible via live audio webcast through the Investor Relations section of SC's corporate website at http://investors.santanderconsumerusa.com. Choose "Events" and select the information pertaining to the Q1 2020 SC Earnings Conference Call. Additionally, there will be slides accompanying the webcast. Please allow at least 15 minutes prior to the call to register, download and install any necessary software prior to the call.

For those unable to listen to the live broadcast, a replay of the call will be available on the Company's website or by dialing 844-512-2921 (U.S. domestic), or 412-317-6671 (international), conference ID 6666996, approximately two hours after the conference call. An audio webcast of the call and investor presentation will also be archived on the Investor Relations section of SC's corporate website at http://investors.santanderconsumerusa.com, under "Events".

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions, or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as anticipates, believes, can, could, may, predicts, potential, should, will, estimates, plans, projects, continuing, ongoing, expects, intends, and similar words or phrases. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements are not guarantees of future performance and involve risks and uncertainties that are subject to change based on various important factors, some of which are beyond our control. For additional discussion of these risks, refer to the section entitled Risk Factors and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2019, our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, or other applicable documents that are filed or furnished with the U.S. Securities and Exchange Commission (collectively, our "SEC filings"). Among the factors that could cause the forward-looking statements in this press release and/or our financial performance to differ materially from that suggested by the forward-looking statements are (a) the adverse impact of COVID-19 on our business, financial condition, liquidity and results of operations; (b) the inherent limitations in internal control over financial reporting; (c) our ability to remediate any material weaknesses in internal controls over financial reporting completely and in a timely manner; (d) continually changing federal, state, and local laws and regulations could materially adversely affect our business; (e) adverse economic conditions in the United States and worldwide may negatively impact our results; (f) our business could suffer if our access to funding is reduced; (g) significant risks we face implementing our growth strategy, some of which are outside our control; (h) unexpected costs and delays in connection with exiting our personal lending business; (i) our agreement with FCA US LLC may not result in currently anticipated levels of growth and is subject to certain conditions that could result in termination of the agreement; (j) our business could suffer if we are unsuccessful in developing and maintaining relationships with automobile dealerships; (k) our financial condition, liquidity, and results of operations depend on the credit performance of our loans; (l) loss of our key management or other personnel, or an inability to attract such management and personnel; (m) certain regulations, including but not limited to oversight by the Office of the Comptroller of the Currency, the Consumer Financial Protection Bureau, the European Central Bank, and the Federal Reserve, whose oversight and regulation may limit certain of our activities, including the timing and amount of dividends and other limitations on our business; and (n) future changes in our relationship with SHUSA and Banco Santander that could adversely affect our operations. If one or more of the factors affecting our forward-looking information and statements proves incorrect, our actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements. Therefore, we caution the reader not to place undue reliance on any forward-looking information or statements. The effect of these factors is difficult to predict. Factors other than these also could adversely affect our results, and the reader should not consider these factors to be a complete set of all potential risks or uncertainties as new factors emerge from time to time. Any forward-looking statements only speak as of the date of this document, and we undertake no obligation to update any forward-looking information or statements, whether written or oral, to reflect any change, except as required by law. All forward-looking statements attributable to us are expressly qualified by these cautionary statements.

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About Santander Consumer USA Holdings Inc.

Santander Consumer USA Holdings Inc. (NYSE: SC) (“SC”) is a full-service consumer finance company focused on vehicle finance, third-party servicing and delivering superior service to our more than 2.9 million customers across the full credit spectrum. SC, which began originating retail installment contracts in 1997, had an average managed asset portfolio of approximately $60 billion (for the first quarter ended March 31, 2020), and is headquartered in Dallas. (www.santanderconsumerusa.com)

CONTACTS:

Investor Relations

Evan Black

800.493.8219

InvestorRelations@santanderconsumerusa.com

Media Relations

Annette Rogers

469.563.4157

Media@santanderconsumerusa.com

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Santander Consumer USA Holdings Inc.

Financial Supplement

First Quarter 2020

Table of Contents
Table 1: Condensed Consolidated Balance Sheets	6
Table 2: Condensed Consolidated Statements of Income	7
Table 3: Other Financial Information	8
Table 4: Credit Quality	10
Table 5: Originations	12
Table 6: Ending Portfolio	13
Table 7: Reconciliation of Non-GAAP Measures	14

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Table 1: Condensed Consolidated Balance Sheets

	March 31, 2020		December 31, 2019
Assets	(Unaudited, Dollars in thousands)
Cash and cash equivalents	$	501,588	$	81,848
Finance receivables held for sale, net	912,126		1,007,105
Finance receivables held for investment, at amortized cost	30,829,863		30,810,487
Allowance for credit loss	(5,460,098)		(3,043,468)
Finance receivables held for investment, at amortized cost, net	25,369,765		27,767,019
Restricted cash and cash equivalents	1,987,004		2,079,239
Accrued interest receivable	299,035		288,615
Leased vehicles, net	16,746,907		16,461,982
Furniture and equipment, net	60,020		59,873
Goodwill	74,056		74,056
Intangible assets	47,823		42,772
Other assets	1,108,607		1,071,020
Total assets	$	47,106,931	$	48,933,529
Liabilities and Equity
Liabilities:
Total borrowings and other debt obligations	$	40,216,880	$	39,194,141
Accounts payable and accrued expenses	458,429		563,277
Deferred tax liabilities, net	940,121		1,468,222
Other liabilities	345,398		389,269
Total liabilities	$	41,960,828	$	41,614,909
Equity:
Common stock, $0.01 par value	3,211		3,392
Additional paid-in capital	707,384		1,173,262
Accumulated other comprehensive income, net	(63,655)		(26,693)
Retained earnings	4,499,163		6,168,659
Total stockholders’ equity	$	5,146,103	$	7,318,620
Total liabilities and equity	$	47,106,931	$	48,933,529

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Table 2: Condensed Consolidated Statements of Income

	Three Months Ended March 31,
	2020		2019
	(Unaudited, Dollars in thousands, except per share amounts)
Interest on finance receivables and loans	$	1,273,819	$	1,253,580
Leased vehicle income	747,979		649,560
Other finance and interest income	7,551		10,247
Total finance and other interest income	2,029,349		1,913,387
Interest expense	328,834		334,382
Leased vehicle expense	552,912		444,019
Net finance and other interest income	1,147,603		1,134,986
Credit loss expense	907,887		550,879
Net finance and other interest income after credit loss exoense	239,716		584,107
Profit sharing	14,295		6,968
Net finance and other interest income after credit loss expense and profit sharing	225,421		577,139
Investment losses, net	(63,426)		(67,097)
Servicing fee income	19,103		23,806
Fees, commissions, and other	95,130		94,376
Total other income	50,807		51,085
Compensation expense	133,326		127,894
Repossession expense	57,662		70,860
Other operating costs	91,685		92,203
Total operating expenses	282,673		290,957
Income (loss) before income taxes	(6,445)		337,267
Income tax expense	(2,458)		89,764
Net income (loss)	$	(3,987)	$	247,503
Net income per common share (basic)	$	(0.01)	$	0.70
Net income per common share (diluted)	$	(0.01)	$	0.70
Weighted average common shares (basic)	334,026,052		351,515,464
Weighted average common shares (diluted)	334,346,122		352,051,887

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Table 3: Other Financial Information

	Three Months Ended March 31,
Ratios (Unaudited, Dollars in thousands)	2020			2019
Yield on retail installment contracts	15.3		%	16.2		%
Yield on leased vehicles	4.4		%	5.3		%
Yield on personal loans, held for sale (1)	26.5		%	26.2		%
Yield on earning assets (2)	11.8		%	12.9		%
Cost of debt (3)	3.3		%	3.8		%
Net interest margin (4)	9.2		%	10.0		%
Expense ratio (5)	1.9		%	2.1		%
Return on average assets (6)	(0.03)		%	2.2		%
Return on average equity (7)	(0.3)		%	14.0		%
Net charge-off ratio on individually acquired retail installment contracts (8)	7.7		%	8.6		%
Net charge-off ratio (8)	7.7		%	8.6		%
Delinquency ratio on individually acquired retail installment contracts held for investment, end of period (9)	4.6		%	4.2		%
Delinquency ratio on loans held for investment, end of period (9)	4.6		%	4.2		%
Allowance ratio (10)	17.7		%	11.0		%
Common stock dividend payout ratio (11)	*			28.4		%
Common Equity Tier 1 capital ratio (12)	13.8		%	15.8		%
Charge-offs, net of recoveries, on individually acquired retail installment contracts	$	593,046		$	615,204
Total charge-offs, net of recoveries	593,599			615,615
End of period delinquent amortized cost over 59 days, retail installment contracts held for investment	1,418,857			1,224,289
End of period personal loans delinquent principal over 59 days, held for sale	161,639			165,220
End of period delinquent amortized cost over 59 days, loans held for investment	1,419,865			1,225,807
End of period assets covered by allowance for credit losses	30,781,350			28,857,519
End of period gross retail installment contracts held for investment	30,741,144			28,821,729
End of period gross personal loans held for sale	1,341,361			1,393,403
End of period gross finance receivables and loans held for investment	30,753,640			28,864,876
End of period gross finance receivables, loans, and leases held for investment	48,598,983			44,491,987
Average gross retail installment contracts held for investment	30,718,119			28,595,315
Average gross retail installment contracts held for investment and held for sale	30,768,423			28,595,315
Average gross personal loans held for sale	1,413,021			1,466,300
Average gross finance receivables and loans	32,242,390			30,124,514
Average gross operating leases	17,735,640			15,425,190
Average gross finance receivables, loans, and leases	49,978,030			45,549,704
Average managed assets	60,207,338			54,433,129
Average total assets	47,690,751			44,488,868
Average debt	39,692,456			35,261,121
Average total equity	6,006,455			7,052,703

(1)Includes Finance and other interest income; excludes fees

(2)“Yield on earning assets” is defined as the ratio of annualized Total finance and other interest income, net of Leased vehicle expense, to Average gross finance receivables, loans and leases

(3)“Cost of debt” is defined as the ratio of annualized Interest expense to Average debt

(4)“Net interest margin” is defined as the ratio of annualized Net finance and other interest income to Average gross finance receivables, loans and leases

(5)“Expense ratio” is defined as the ratio of annualized Operating expenses to Average managed assets

(6)“Return on average assets” is defined as the ratio of annualized Net income to Average total assets

(7)“Return on average equity” is defined as the ratio of annualized Net income to Average total equity

(8)“Net charge-off ratio” is defined as the ratio of annualized Charge-offs, on a amortized cost basis, net of recoveries, to average unpaid principal balance of the respective held-for-investment portfolio.

(9)“Delinquency ratio” is defined as the ratio of End of period Delinquent principal over 59 days to End of period gross balance of the respective portfolio, excludes finance leases

(10)“Allowance ratio” is defined as the ratio of Allowance for credit losses, which excludes impairment on purchased receivables portfolios, to End of period assets covered by allowance for credit losses

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(11)“Common stock dividend payout ratio” is defined as the ratio of Dividends declared per share of common stock to Earnings per share attributable to the Company's shareholders. The Common stock dividend payout ratio for the three months ended March 31, 2020 has not been disclosed since the earnings per share for the three months ended March 31, 2020 was a negative number

(12)“Common Equity Tier 1 Capital ratio” is a non-GAAP ratio defined as the ratio of Total common equity tier 1 capital to Total risk-weighted assets (for a reconciliation from GAAP to this non-GAAP measure, see “Reconciliation of Non-GAAP Measures” in Table 7 of this release)

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Table 4: Credit Quality

The activity in the credit loss allowance for retail installment contracts for the three months ended March 31, 2020 and 2019 was as follows (Unaudited, Dollar amounts in thousands):

	Three Months Ended March 31, 2020				Three Months Ended March 31, 2019
Allowance for Credit Loss	Non-TDR		TDR		Non-TDR		TDR
Balance — beginning of period	$	2,123,878	$	914,718	$	1,819,360	$	1,416,743
Day 1 - Adjustment to allowance for adoption of CECL standard	2,030,473		71,833		—		—
Credit loss expense	757,192		150,850		446,488		104,613
Charge-offs (a)	(899,550)		(289,567)		(927,457)		(466,637)
Recoveries	470,669		125,402		552,960		225,930
Balance — end of period	$	4,482,662	$	973,236	$	1,891,351	$	1,280,649

(a) Charge-offs for retail installment contracts includes partial write-down of loans to the collateral value less estimated costs to sell, for which a bankruptcy notice was received. There is no additional ACL on these loans.

A summary of delinquencies of our retail installment contracts as of March 31, 2020 and December 31, 2019 is as follows (Unaudited, Dollar amounts in thousands):

Delinquent Balance	March 31, 2020
	Amount		Percent
Amortized cost, 30-59 days past due	2,565,268		8.3	%
Delinquent amortized cost over 59 days	1,418,857		4.6	%
Total delinquent balance at amortized cost	$	3,984,125	12.9	%
Delinquent Balance	December 31, 2019
	Amount		Percent
Principal 30-59 days past due	$	2,972,495	9.7	%
Delinquent principal over 59 days	1,578,452		5.1	%
Total delinquent principal (a)	$	4,550,947	14.8	%

(a) The table includes balances based on UPB. Difference between amortized cost and UPB was not material.

The retail installment contracts held for investment that were placed on nonaccrual status, as of March 31, 2020 and December 31, 2019 (Unaudited, Dollar amounts in thousands):

Nonaccrual Balance	March 31, 2020
	Amount		Percent
Non-TDR	1,054,039		3.4	%
TDR	421,341		1.4	%
Total non-accrual loans (a)	$	1,475,380	4.8	%

(a) The table includes balances based on amortized cost.

Nonaccrual Balance	December 31, 2019
	Amount		Percent
Non-TDR	$	1,099,462	3.6	%
TDR	516,119		1.7	%
Total nonaccrual principal (a)	$	1,615,581	5.3	%

(a) The table includes balances based on UPB. Difference between amortized cost and UPB was not material.

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The table below presents the Company’s allowance ratio for TDR and non-TDR individually acquired retail installment contracts as of March 31, 2020 and December 31, 2019 (Unaudited, Dollar amounts in thousands):

Allowance Ratios	March 31, 2020			December 31, 2019
TDR - Unpaid principal balance	$	3,459,695		$	3,859,040
TDR - Impairment	973,236			914,718
TDR - Allowance ratio	28.1		%	23.7		%
Non-TDR - Unpaid principal balance	$	27,261,964		$	26,895,551
Non-TDR - Allowance	4,482,662			2,123,878
Non-TDR Allowance ratio	16.4		%	7.9		%
Total - Unpaid principal balance	$	30,721,659		$	30,754,591
Total - Allowance	5,455,898			3,038,596
Total - Allowance ratio	17.8		%	9.9		%

The Company’s allowance for credit losses increased $2.3 billion for the three months ended March 31, 2020. The primary drivers were an approximately $2.0 billion increase at CECL adoption on January 1, 2020, driven mainly by the addition of lifetime expected credit losses for non-TDR loans, and approximately $0.3 billion, net due to business drivers during the first quarter of 2020, which includes $0.4 billion of additional reserves specific to COVID-19 risk, partially offset by decline in balances.

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Table 5: Originations

The Company's originations of loans and leases, including revolving loans, average APR, and dealer discount (net of dealer participation) were as follows:

	Three Months Ended
	March 31, 2020			March 31, 2019			December 31, 2019
Retained Originations	(Unaudited, Dollar amounts in thousands)
Retail installment contracts	$	3,846,226		$	4,026,327		$	3,779,615
Average APR	15.3 %			17.2		%	15.8		%
Average FICO® (a)	607			593			598
Discount	(0.8)		%	(0.1)		%	(0.8)		%
Personal loans (b)	270,835			288,557			$	513,347
Average APR	29.8		%	29.7		%	29.8		%
Leased vehicles	2,020,721			1,963,580			$	1,811,662
Finance lease	3,002			3,308			$	4,600
Total originations retained	$	6,140,784		$	6,281,772		$	6,109,224
Total originations (excluding SBNA Originations Program)	$	6,140,784		$	6,281,772		$	6,109,224

(a)Unpaid principal balance excluded from the weighted average FICO score is $432 million, $493 million and $404 million as the borrowers on these loans did not have FICO scores at origination and $139 million, $106 million and $181 million of commercial loans, for the three months ended March 31, 2020, 2019 and December 31, 2019, respectively.

(b)Included in the total origination volume is $21 million, $24 million and $133 million for the three months ended March 31, 2020, 2019 and December 31, 2019, respectively, related to newly opened accounts.

There were no sales during the three months ended March 31, 2020, 2019 and the year ended December 31, 2019.

SBNA Originations Program

Beginning in 2018, the Company agreed to provide SBNA with origination support services in connection with the processing, underwriting and purchase of retail loans, primarily from Chrysler dealers. In addition, the Company agreed to perform the servicing for any loans originated on SBNA’s behalf. The Company facilitated the purchase of $1.1 billion and $1.0 billion of retail installment contacts during the three months ended March 31, 2020 and 2019, respectively.

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Table 6: Ending Portfolio

Ending outstanding balance, average APR and remaining unaccreted net discount of our held for investment portfolio as of March 31, 2020, and December 31, 2019, are as follows:

	March 31, 2020			December 31, 2019
	(Unaudited, Dollar amounts in thousands)
Retail installment contracts	$	30,741,144		$	30,776,038
Average APR	15.8		%	16.1		%
Discount	0.1		%	0.3		%
Receivables from dealers	$	12,496		$	12,668
Average APR	4.0		%	4.0		%
Leased vehicles	$	17,817,633		$	17,562,782
Finance leases	$	27,710		$	27,584

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Table 7: Reconciliation of Non-GAAP Measures

	March 31, 2020		March 31, 2019
	(Unaudited, Dollar amounts in thousands)
Total equity	5,146,103		7,158,530
Add: Adjustment due to CECL capital relief (c)	1,669,466		—
Deduct: Goodwill, intangibles, and other assets, net of deferred tax liabilities	153,712		163,444
Deduct: Accumulated other comprehensive income (loss), net	(63,655)		12,938
Tier 1 common capital	6,725,512		6,982,148
Risk weighted assets (a)(c)	48,829,941		44,260,896
Common Equity Tier 1 capital ratio (b)(c)	13.8	%	15.8	%

(a)Under the banking agencies' risk-based capital guidelines, assets and credit equivalent amounts of derivatives and off-balance sheet exposures are assigned to broad risk categories. The aggregate dollar amount in each risk category is multiplied by the associated risk weight of the category. The resulting weighted values are added together with the measure for market risk, resulting in the Company's total Risk weighted assets.

(b)CET1 is calculated under Basel III regulations required as of January 1, 2015. The fully phased-in capital ratios are non-GAAP financial measures.

(c)As described in our 2019 annual report on Form 10-K, on January 1, 2020, we adopted ASU 2016-13, Financial Instruments -Credit Losses (“CECL”), which upon adoption resulted in a reduction to our opening retained earnings balance, net of income tax, and increase to the allowance for credit losses of approximately $2 billion. As also described in our 2019 10-K, the U.S. banking agencies in December 2018 had approved a final rule to address the impact of CECL on regulatory capital by allowing banking organizations, including the Company, the option to phase in the day-one impact of CECL until the first quarter of 2023. In March 2020, the U.S. banking agencies issued an interim final rule that provides banking organizations with an alternative option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period. The Company is electing this alternative option instead of the one described in the December 2018 rule.

14

EX-99.2

Exhibit 99.2 First Quarter 2020 April 28, 2020

Forward-Looking Statements Among the factors that could cause the forward-looking statements in this press release and/or our financial performance to differ materially from that suggested by the forward-looking statements are (a) the adverse impact of COVID-19 on our business, financial condition, liquidity and results of operations; (b) the inherent limitations in internal IMPORTANT control over financial reporting; (c) our ability to remediate any material weaknesses in internal controls over financial reporting completely and in a timely manner; (d) continually changing federal, state, and local laws INFORMATION and regulations could materially adversely affect our business; (e) adverse economic conditions in the United States and worldwide may negatively impact our results; (f) our business could suffer if our access to funding is reduced; (g) significant risks we face implementing our growth strategy, some of which are outside our control; (h) unexpected costs and delays in connection with exiting our personal lending business; (i) our agreement with FCA US LLC may not result in currently anticipated levels of growth and is subject to certain conditions that could result in termination of the agreement; (j) our business could suffer if we are unsuccessful in developing and maintaining relationships with automobile dealerships; (k) our financial condition, liquidity, and results of operations depend on the credit performance of our loans; (l) loss of our key management or other personnel, or an inability to attract such management and personnel; (m) certain regulations, including but not limited to oversight by the Office of the Comptroller of the Currency, the Consumer Financial Protection Bureau, the European Central Bank, and This presentation contains forward-looking statements within the the Federal Reserve, whose oversight and regulation may limit certain of meaning of the Private Securities Litigation Reform Act of 1995. Any our activities, including the timing and amount of dividends and other statements about our expectations, beliefs, plans, predictions, forecasts, limitations on our business; and (n) future changes in our relationship objectives, assumptions, or future events or performance are not with SHUSA and Banco Santander that could adversely affect our historical facts and may be forward-looking. These statements are often, operations. If one or more of the factors affecting our forward-looking but not always, made through the use of words or phrases such as information and statements proves incorrect, our actual results, anticipates, believes, can, could, may, predicts, potential, should, will, performance or achievements could differ materially from those estimates, plans, projects, continuing, ongoing, expects, intends, and expressed in, or implied by, forward-looking information and statements. similar words or phrases. Although we believe that the expectations Therefore, we caution the reader not to place undue reliance on any reflected in these forward-looking statements are reasonable, these forward-looking information or statements. The effect of these factors is statements are not guarantees of future performance and involve risks difficult to predict. Factors other than these also could adversely affect and uncertainties that are subject to change based on various important our results, and the reader should not consider these factors to be a factors, some of which are beyond our control. For additional discussion complete set of all potential risks or uncertainties as new factors emerge of these risks, refer to the section entitled Risk Factors and elsewhere in from time to time. Any forward-looking statements only speak as of the our Annual Report on Form 10-K for the year ended December 31, 2019, date of this document, and we undertake no obligation to update any our subsequent Quarterly Reports on Form 10-Q or Current Reports on forward-looking information or statements, whether written or oral, to Form 8-K, or other applicable documents that are filed or furnished with reflect any change, except as required by law. All forward-looking the U.S. Securities and Exchange Commission (collectively, our “SEC statements attributable to us are expressly qualified by these cautionary filings”). statements. 2

COVID-19 Santander Consumer COVID-19 Relief Efforts ► 95%+ employees working from home Employees ► Temporary Emergency Paid Leave Program ► Premium compensation to frontline employees ► Expanded payment deferrals Customers ► Waiving late charges and providing lease extensions ► Temporarily suspended involuntary repossessions ► Extensions for lessees unable to return their vehicles ► First payment deferred 90 days on select new FCA models FCA/Dealers ► 0% Annual Percentage Rate for 84 months on select new FCA models ► Relief programs for dealers through Santander Bank, N.A. ► Santander US will provide $25M in financing to Community Development Financial Institutions Communities ► SC donated $3M to organizations serving vulnerable populations hardest hit by the crisis 3

Earnings Highlights 1Q20 Earnings Impacted by Reserves ► $442M of incremental reserves due to macroeconomic factors, primarily driven by COVID-19, CECL approximately $0.81 per diluted common share ► Allowance ratio of 17.8%, up ~800bps from Q4 2019 allowance ratio ► Total auto originations of ~$7.0B in Q1 2020, down 1% versus prior year quarter Results ► Through Santander Bank, originated $1.1B in auto loans in Q1 2020 ► FCA penetration rate of 39%, up from 31% in Q1 2019 ► Early stage delinquency ratio of 8.3%, down 10 bps YoY Credit ► Late stage delinquency ratio of 4.6%, up 40 bps YoY Performance ► Gross charge-off ratio of 15.5%, down 400 bps YoY ► Net charge-off ratio of 7.7%, down 90 bps YoY ► $2.1B in ABS issued in Q1 2020, an additional $965M in April 2020 Liquidity & ► Completed $455M of the $1B tender offer Capital ► CET1 Ratio of 13.8%, down from 15.8% as of March 31, 2019 4

Economic Indicators Consumer Confidence1 96.9 101.4 98.4 93.0 91.0 Consumer confidence levels dropped to 89.1 due 76.2 78.6 80.0 69.5 73.6 67.5 to uncertainty caused by COVID-19 89.1 57.3 U.S. Unemployment Statistics2 9.9% 9.0% 8.7% 8.2% Unemployment rate increased to 4.4% after stay- 7.5% 6.7% at-home orders were placed throughout the country 5.1% 5.4% 5.0% 4.4% 4.4% 4.0% 3.8% U.S. GDP3 2.8% 2.9% 2.2% 3.1% 1.1% 1.6% 1.9% 1.1% 1.7% 1.4% 1.4% 2.1%* US GDP was at a steady level at the end of Q4 2019 -3.5% Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar 08 09 10 11 12 13 14 15 16 17 18 19 20 1 University of Michigan, monthly data as of March 31, 2020 2 U.S. Bureau of Labor Statistics, monthly data as of March 31, 2020 5 3 U.S. Bureau of Economic Analysis, quarterly data as of December 31, 2019

Auto Industry Analysis U.S. Auto Sales1 17.4 17.3 17.2 17.1 16.6 Auto sales of 11.4M, down 31% QoQ due to dealership and manufacturer shutdowns caused by COVID-19 11.4 Used Vehicle Indices2 Manheim 141.9 140.5 139.9 141.1 137.6 136.0 Used vehicle prices were strong during the beginning of Q1 before deteriorating during March due to COVID-19 JDP 122.0 121.8 121.6 117.2 118.4 117.9 SC Recovery Rates3 60.3% 55.9% 55.9% SC’s recovery rate reflects the resilient used car 52.2% 50.1% 47.3% market at the beginning of Q1, offset by COVID-19 impacts during March Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 1 U.S. Bureau of Economic Analysis, Light Weight Vehicle Sales: Autos and Light Trucks, monthly data as of March 31, 2020 2 Manheim, Inc.; Indexed to a basis of 100 at 1995 levels; JD Power Used-Vehicle Price Index (not seasonally adjusted), both monthly, quarter end 3 Recovery Rate – Per the financial statements includes insurance proceeds, bankruptcy/deficiency sales, and timing impacts 6

Diversified Underwriting Across the Credit Spectrum Three Months Ended Originations % Variance ($ in Millions) Q1 2020 Q4 2019 Q1 2019 QoQ YoY Total Core Retail Auto $ 2,306 $ 2,427 $ 2,620 (5%) (12%) Chrysler Capital Loans (<640)1 1,190 1,313 1,331 (9%) (11%) Chrysler Capital Loans (≥640)1 1,432 1,935 1,112 (26%) 29% Total Chrysler Capital Retail 2,622 3,248 2,443 (19%) 7% Total Leases 2 2,024 1,816 1,967 11% 3% Total Auto Originations3 $ 6,952 $ 7,491 $ 7,030 (7%) (1%) SBNA Originations 4 $ 1,081 $ 1,895 $ 1,036 (43%) 4% 1 Approximate FICOs 2 Includes nominal capital lease originations 7 3 Includes SBNA Originations 4 SBNA Originations remain off of SC’s balance sheet in the Service For Others portfolio

Fiat Chrysler (FCA) Relationship SC continues to support FCA, recently through incentivized programs on select new FCA models • First payment deferred 90 days on select new FCA models • 0% Annual Percentage Rate for 84 months on select new FCA models FCA Sales1 (units in ‘000s) Chrysler Penetration Rate2 598 565 543 38.9% 498 36.1% 35.7% 447 31.1% 31.9% 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20 1 FCA filings; sales as reported on 01/03/2020 2 Auto loans and leases financed by Chrysler Capital 8

Serviced for Others (SFO) Platform Stable balances Serviced for Others Balances, End of Period ($ in Millions) $10,414 $10,331 QoQ $9,979 $9,282 15% 15% $8,744 20% Recent serviced for others balance growth driven by prime originations from the 26% SBNA originations program 34% Previously announced TCF conversion executed during Q1 85% 85% 80% 74% 66% 1Q19 2Q19 3Q19 4Q19 1Q20 Related Party 3rd Party 9

Funding and Liquidity $50B in liquidity Funding and Liquidity ($ in Billions) $51.1 $49.5 Executed $965M SDART subsequent to 1.9 1.1 quarter end $45.5 SBNA • One of the first ABS transactions to 1.0 9.2 8.7 Originations re-open the securitization markets since the COVID-19 pandemic 7.0 • Significant investor support allowing Santander for upsize and better than expected Holdings pricing USA 18.8 18.2 ABS Executed $1.1B of new third party 18.5 financings at the end of March Extended and renewed an existing 3rd party Bank Term $1.25B third party revolving warehouse 9.3 9.9 Financing line 8.6 3rd party 45% available warehouse capacity from Bank 13 bank partners Warehouse $10.3 11.9 11.8 Lines $3.0B unused related party liquidity Q1 2019 Q4 2019 Q1 2020 10

Q1 2020 Financial Results Three Months Ended (Unaudited, Dollars in Thousands, except per share) March 31, 2020 December 31, 2019 March 31, 2019 Interest on finance receivables and loans $ 1,273,819 $ 1,262,266 $ 1,253,580 Net leased vehicle income 195,067 214,693 205,541 Other finance and interest income 7,551 10,624 10,247 Interest expense 328,834 332,171 334,382 Net finance and other interest income $ 1,147,603 $ 1,155,412 $ 1,134,986 Provision for credit losses 907,887 545,345 550,879 Profit sharing 14,295 14,293 6,968 Total other income 50,807 (64,023) 51,085 Total operating expenses 282,673 309,475 290,957 Income before tax $ (6,445) $ 222,276 $ 337,267 Income tax expense (2,458) 76,214 89,764 Net income $ (3,987) $ 146,062 $ 247,503 Diluted EPS ($) $ (0.01) $ 0.43 $ 0.70 Average total assets $ 47,690,751 $ 47,875,073 $ 44,488,868 Average managed assets $ 60,207,338 $ 58,909,208 $ 54,433,129 11

Delinquency & Loss Delinquency Ratios: 30-59 Days Delinquent, RICs, HFI 11.0% Early stage delinquencies decreased 10 bps YoY 9.4% 9.5% 9.7% 8.4% 8.3% Delinquency Ratios: >59 Days Delinquent, RICs, HFI 6.0% Late stage delinquencies increased 40 bps YoY 5.1% 4.7% 4.7% 4.6% 4.2% Gross Charge-off Rates 20.2% 19.5% 18.3% Gross charge-off rates decreased 400 bps YoY 17.3% 16.1% 15.5% Net Charge-off Rates1 10.6% 8.6% 8.1% 8.3% 7.7% Net charge-offs decreased 90 bps YoY 6.4% Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 1 Net Charge-off rates on retail installment contracts, held for investment 12

Loss Detail Q1 2019 to Q1 2020: Net Charge-off Walk, ($ in millions) Net charge-offs for RICs decreased $22M versus prior year quarter to $593M $96 ($124) $615 $48 ($41) $593 $48M increase in losses due to lower recoveries YoY and $96M increase due to higher loan balance $124M decrease due to a lower gross charge-off rate YoY and $41M lower due to other impacts Q1 2019 Recoveries Balance Gross Loss Other Q1 2020 Performance 13

Reserves 1 Q4 2019 to Q1 2020 Allowance for Credit Loss Walk (RICs, HFI $ in millions) $442 ($127) $2,102 QoQ allowance for credit loss increase driven by Day 1 CECL adjustment and $5,141 $5,456 $5,456 macroeconomic factors $3,039 $3,039 4Q 2019 Day 1 Adjustment Economic Factors Portfolio Changes 1Q 2020 (Primarily COVID) Credit Loss Expense and Allowance Ratio ($ in millions) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 0.2 $1,200 17.8% 0.18 Allowance to loans ratio increased 130 bps 16.5% 0.16 from the estimated Day 1 allowance ratio$1,000 0.14 due to macroeconomic factors 11.0% $800 10.8% $908 0.12 10.5% 9.88% 0.1 $600 Credit loss expense increased $357M YoY 0.08 $551 $567 $545 $400 0.06 $431 0.04 $200 0.02 $0 0 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Credit loss expense Day 1 Allowance Ratio Allowance Ratio 14 1 Allowance for credit loss related to retail installment contracts, held for investment

Current Expected Credit Losses (“CECL”) CECL Impact Dollars in Millions (Unaudited) (Estimated)1 (Audited) Previously estimated Day 1 CECL impact increased allowance for credit loss (ACL) Allowance Ratios March 31, 2020 January 1, 2020 December 31, 2019 by ~$2B compared to Q4 2019, primarily because of expected credit losses over the TDR- Unpaid principal balance $3,560 $3,859 $3,859 full expected life of the non-TDR loans TDR – Impairment $973 ~$950 $915 • Non-TDR coverage ratio approximately TDR- Allowance ratio 28.1% ~24.6% 23.7% doubles, reflecting lifetime reserve coverage Non-TDR – Unpaid principal $27,262 $26,896 $26,896 As of the end of Q1 2020, total allowance balance increased $0.4B compared to 1/1/2020, Non-TDR – Allowance $4,483 ~$4,150 $2,124 primarily driven by macroeconomic factors and COVID-19 reserves Non-TDR Allowance ratio 16.4% ~15.4% 7.9% • Total allowance coverage ratio increased to 17.8% Total – Unpaid principal balance $30,722 $30,755 $30,755 • SC is electing to defer CECL’s effect on Total – Allowance $5,456 ~$5,100 $3,039 regulatory capital for two years followed by a three-year phase-in period per Total – Allowance ratio 17.8% ~16.5% 9.9% regulatory guidance 1 Estimated as of December 31, 2019 15

Expense Management Operating expenses Operating Expenses ($ in Millions) totaled $283M, $400 7.0% $350 $329 $309 6.0% $291 expense ratio down $300 $281 $283 5.0% 20bps YoY $250 4.0% $200 2.3% 3.0% $150 2.1% 2.1% Operating expenses decreased $8M 2.0% 1.9% 2.0% YoY primarily driven by lower $100 repossession expense. Involuntary 1.0% repossessions have been temporarily $50 suspended due to COVID-19. $0 0.0% 1Q19 2Q19 3Q19 4Q19 1Q20 Expense ratio decreased 20bps YoY Operating Expense Expense Ratio 16

Consistent Capital Generation 1 Common Equity Tier 1 Capital Ratio $120,000 18.0% Strong capital 15.8% 15.7% 15.4% 16.0% 14.8% $110,000 base 13.8% 14.0% Lower CET1 due to share repurchases $100,000 12.0% SC maintains strong capital levels in addition to its loan loss reserves 10.0% $90,000 8.0% $80,000 6.0% 4.0% $70,000 2.0% $60,000 0.0% Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Tier 1 common capital $6,982 $7,207 $7,226 $7,193 $6,726 Risk weighted assets 2 $44,261 $45,850 $46,870 $48,762 $48,830 CET1 15.8% 15.7% 15.4% 14.8% 13.8% 1 CET1 is calculated under Basel III regulations required as of January 1, 2015. Please see Slide 22 for further details related to CECL phase-in impact. 2 Under the banking agencies' risk-based capital guidelines, assets and credit equivalent amounts of derivatives and off-balance sheet exposures are assigned 17 to .broad risk .categories. The aggregate dollar amount in each risk category is multiplied by the associated risk weight of the category. The resulting weighted values are added together with the measure for market risk, resulting in the Company's and the Bank's total Risk weighted assets

Appendix

Diversified Underwriting Across Full Credit Spectrum Originations by Credit (RICs)1 $6,192 $5,867 $5,674 $5,063 $4,927 41% 41% 40% 31% 36% 16% 14% 15% 14% 15% 26% 22% 23% 21% 24% 13% 9% 9% 10% 11% 12% 11% 11% 12% 11% 2% 2% 2% 3% 3% 1Q19 2Q19 3Q19 4Q19 1Q20 Commercial 2 No FICO <540 540-599 600-639 >640 Average Loan Balance in Dollars $23,274 $25,565 $25,627 $25,706 $24,776 New/Used Originations $6,192 $5,867 $5,674 $5,063 $4,927 39% 38% 39% 48% 45% 62% 61% 61% 52% 55% 1Q19 2Q19 3Q19 4Q19 1Q20 New Used 1 RIC; Retail Installment Contract 2 Loans to commercial borrowers; no FICO score obtained 19

Heldfor Investment Credit Trends Retail Installment RetailInstallment Contracts 1.9% Commercial 2.1% Q1 2019 2.2% 2.4% 2.5% 1 10.9% Unknown 10.9% 10.6% 1 Held for investment; excludes assets held for sale forheld assets excludes investment; Held for Q2 2019 10.0% 12.4% 19.4% 18.8% <540 17.9% 16.9% Q3 2019 16.7% 33.0% 540-599 33.2% 32.9% 31.9% 31.9% Q4 2019 18.4% 600-639 18.9% 19.0% 19.0% 18.9% Q1 2020 16.4% >=640 16.1% 17.4% 19.8% 17.5% 20

Excluding Personal Lending Detail Personal lending earned $68M before operating expenses and taxes in Q1 2020 Three Months Ended, (Unaudited, Dollars in Thousands) March 31, 2020 December 31, 2019 March 31, 2019 Excluding Excluding Excluding Personal Personal Personal Total Personal Total Personal Total Personal Lending Lending Lending Lending Lending Lending Interest on finance receivables and loans $ 1,273,819 $ 93,541 $ 1,180,278 $ 1,262,266 $ 87,842 $ 1,174,424 $ 1,253,580 $ 96,022 $ 1,157,558 Net leased vehicle income 195,067 - 195,067 214,693 - 214,693 205,541 - 205,541 Other finance and interest income 7,551 - 7,551 10,624 - 10,624 10,247 - 10,247 Interest expense 328,834 12,205 316,629 332,171 10,423 321,748 334,382 12,561 321,821 Net finance and other interest income $ 1,147,603 $ 81,336 $ 1,066,267 $ 1,155,412 $ 77,419 $ 1,077,993 $ 1,134,986 $ 83,461 $ 1,051,525 Provision for credit losses $ 907,887 $ - $ 907,887 $ 545,345 $ - $ 545,345 $ 550,879 $ 83 $ 550,796 Profit sharing 14,295 (93) 14,388 14,293 1,388 12,905 6,968 (2,057) 9,025 Investment gains (losses), net1 $ (63,426) $ (62,958) $ (468) $ (168,406) $ (169,534) $ 1,128 $ (67,097) $ (67,691) $ 594 Servicing fee income 19,103 - 19,103 21,079 - 21,079 23,806 - 23,806 Fees, commissions and other 95,130 49,522 45,608 83,304 47,063 36,241 94,376 50,535 43,841 Total other income $ 50,807 $ (13,436) $ 64,243 $ (64,023) $ (122,471) $ 58,448 $ 51,085 $ (17,156) $ 68,241 Average gross individually acquired retail installment $ 30,768,423 - $ 29,936,775 - $ 28,595,315 - contracts, held for investment and held for sale Average gross personal loans - $ 1,413,021 - $ 1,364,877 - $ 1,466,300 Average gross operating leases $ 17,735,640 $ - $ 17,395,639 $ - $ 15,425,190 $ - 1 The current period losses were primarily driven by $63 million of lower of cost or market adjustments related to the held for sale personal lending portfolio, comprised of $110 million in customer default activity, and a $47 million decrease in market discount, consistent with 21 typical seasonal patterns.

Reconciliation of Non-GAAP Measures Three Months Ended (Unaudited, Dollars in Thousands) Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Total equity $5,146,103 $7,318,620 $7,345,202 $7,337,261 $7,158,530 Deduct: Goodwill and intangibles 121,879 116,828 110,683 108,173 115,256 Tangible common equity $5,024,224 $7,201,792 $7,234,519 $7,229,088 $7,043,274 Total assets $47,106,931 $48,933,529 $47,279,015 $46,416,093 $45,045,906 Deduct: Goodwill and intangibles 121,879 116,828 110,683 108,173 115,256 Tangible assets $46,985,052 $48,816,701 $47,168,332 $46,307,920 $44,930,650 Equity to assets ratio 10.9% 15.0% 15.5% 15.8% 15.9% Tangible common equity to tangible assets 10.7% 14.8% 15.3% 15.6% 15.7% Total equity $5,146,103 $7,318,620 $7,345,202 $7,337,261 $7,158,530 Add: Adjustment due to CECL capital relief (a) 1,669,466 - - - - Deduct: Goodwill and other intangible assets, net of DTL 153,712 152,756 150,644 152,264 163,444 Deduct: Accumulated other comprehensive income, net (63,655) (26,693) (31,836) (21,568) 12,938 Tier 1 common capital $6,725,512 $7,192,557 $7,226,394 $7,206,565 $6,982,148 Risk weighted assets (b) $48,829,941 $48,761,825 $46,870,019 $45,849,574 $44,260,896 Common Equity Tier 1 capital ratio (c) 13.8% 14.8% 15.4% 15.7% 15.8% a As described in our 2019 annual report on Form 10-K, on January 1, 2020, we adopted ASU 2016-13, Financial Instruments -Credit Losses (“CECL”), which upon adoption resulted in a reduction to our opening retained earnings balance, net of income tax, and increase to the allowance for loan losses of approximately $2 billion. As also described in our 2019 10-K, the U.S. banking agencies in December 2018 had approved a final rule to address the impact of CECL on regulatory capital by allowing banking organizations, including the Company, the option to phase in the day-one impact of CECL until the first quarter of 2023. In March 2020, the U.S. banking agencies issued an interim final rule that provides banking organizations with an alternative option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period. The Company is electing this alternative option instead of the one described in the December 2018 rule. b Under the banking agencies' risk-based capital guidelines, assets and credit equivalent amounts of derivatives and off-balance sheet exposures are assigned to .broad risk .categories. The aggregate dollar amount in each risk category is multiplied by the associated risk weight of the category. The resulting weighted values are added together with the measure for market risk, resulting in the Company's and the Bank's total Risk weighted assets c CET1 is calculated under Basel III regulations required as of January 1, 2015. 22

Thank You Our purpose is to help people and business prosper. Our culture is based on believing that everything we do should be: