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): July 29, 2020

SANTANDER CONSUMER USA HOLDINGS INC.

(Exact name of registrant as specified in its charter)

Delaware	001-36270	32-0414408
(State or other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
1601 Elm St.	Suite #800
Dallas,	Texas	75201
(Address of Principal Executive Offices)		(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 July 29, 2020, Santander Consumer USA Holdings Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2020. Copies of the Company’s press release and an investor presentation for the quarter ended June 30, 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 July 29, 2020

Exhibit 99.2 Presentation Materials of Santander Consumer USA Holdings Inc., dated July 29, 2020

Exhibit 104 Cover page formatted as Inline XBRL and contained in Exhibit 101

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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: July 29, 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 Second Quarter 2020 Results

Loss of $97 Million; Approximately $8 Billion in Originations in the second quarter of 2020

Dallas, TX - July 29, 2020 - PRESS RELEASE

Santander Consumer USA Holdings Inc. (NYSE: SC) (“SC” or the “Company”) today announced net income for the second quarter ended June 30, 2020 ("Q2 2020") of $(97) million, or $(0.30) per diluted common share. The quarter included $400 million of incremental allowance for credit loss primarily driven by macroeconomic factors and COVID-19.

As previously announced, based on the interim Federal Reserve Board ("FRB") policy and SHUSA’s expected average trailing four quarters of net income, SC is prohibited from paying a dividend in the third quarter of 2020. Although SC’s standalone expected income is sufficient to declare and a pay a dividend in the third quarter, SC is consolidated into SHUSA’s capital plan and therefore is subject to the FRB’s interim policy that utilizes SHUSA’s average trailing income to determine the cap on common stock dividends. SHUSA has requested certain exceptions to the interim policy, however the timing and outcome of the request is uncertain. SC does not currently expect to declare or pay a dividend in the third quarter of 2020 pending approval of SHUSA’s exception request.

Management Quotes

"The duration of the pandemic has created significant macroeconomic uncertainty, and the speed of the economic recovery will dictate our performance over the next several months. While certain indicators are trending positive, we anticipate a delayed reversion to normal. Our results this quarter demonstrate the resiliency of our portfolio, the effectiveness of the hardship programs we instituted and the strength of our business model. Our employees, dealers and customers continue to be our priority as we endeavor to provide them the highest levels of service in these trying times. In the past weeks, we have also responded to the calls for an end to systemic racism by starting a conversation with our employees and committing to take action to make our company a place where all employees are valued, feel safe and have an opportunity to succeed. In the process, we will make sustained and material differences in the way we view race and interact with each other." said Mahesh Aditya, SC President and CEO.

Fahmi Karam, SC Chief Financial Officer, added, "This quarter's strong credit performance reflects the impact of the pandemic relief we provided to our customers and the improvement in auction recovery rates, particularly towards the end of the quarter. We continued to build reserves this quarter due to the COVID-19 uncertainty and we remain well capitalized with a 13.4% CET1 ratio, combining for an industry leading loss absorbing capacity to manage through the pandemic and position us for long-term success."

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Second Quarter of 2020 Highlights (variances compared to second quarter of 2019 (“Q2 2019”), unless otherwise noted)

•Total auto originations of $7.8 billion, down 7%

◦Core retail auto loan originations of $2.1 billion, down 12%

◦Chrysler Capital loan originations of $4.7 billion, up 36%

◦Chrysler Capital lease originations of $989 million, down 61%

◦Chrysler average quarterly penetration rate of 37%, from 36%

◦Santander Bank, N.A. program originations of $1.7 billion

•Net finance and other interest income¹ of $1.1 billion, down 7%

•30-59 delinquency ratio of 4.3%, down 510 basis points

•59-plus delinquency ratio² of 2.4%, down 230 basis points

•Retail Installment Contract (“RIC”) gross charge-off ratio of 11.1%, down 500 basis points

•Recovery rate of 46%, down from 60%

•RIC net charge-off ratio³ of 6.0%, down 40 basis points

•Troubled Debt Restructuring (“TDR”) balance of $3.9 billion, down from $4.5 billion

•Return on average assets of (0.8)%, down from 3.2%

•$1.9 billion in asset-backed securities “ABS” issued

•Expense ratio of 1.7%, down from 2.0%

•Common equity tier 1 (“CET1”) ratio of 13.4%, down from 15.7% as of June 30, 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 Q2 2020 results and other general matters at 9:00 a.m. Eastern Time on Wednesday, July 29, 2020. The conference call will be accessible by dialing 888-394-8218 (U.S. domestic), or 323-701-0225 (international), conference ID 2177889. 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 Q2 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 2177889, 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) continually changing federal, state, and local laws and regulations could materially adversely affect our business; (c) adverse economic conditions in the United States and worldwide may negatively impact our results; (d) a reduction in our access to funding a reduction in ; (e) significant risks we face implementing our growth strategy, some of which are outside our control; (f) unexpected costs and delays in connection with exiting our personal lending business; (g) 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; (h) our business could suffer if we are unsuccessful in developing and maintaining relationships with automobile dealerships; (i) our financial condition, liquidity, and results of operations depend on the credit performance of our loans; (j) loss of our key management or other personnel, or an inability to attract such management and personnel; (k) 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 (l) 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 3.1 million customers across the full credit spectrum. SC, which began originating retail installment contracts in 1997, had an average managed asset portfolio of approximately $61 billion (for the second quarter ended June 30, 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

Second 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: Asset sales	13
Table 7: Ending Portfolio	14
Table 8: Reconciliation of Non-GAAP Measures	15

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Table 1: Condensed Consolidated Balance Sheets

	June 30, 2020		December 31, 2019
Assets	(Unaudited, Dollars in thousands)
Cash and cash equivalents	$	175,936	$	81,848
Finance receivables held for sale, net	2,445,599		1,007,105
Finance receivables held for investment, at amortized cost	30,606,438		30,810,487
Allowance for credit loss	(5,859,954)		(3,043,468)
Finance receivables held for investment, at amortized cost, net	24,746,484		27,767,019
Restricted cash	2,057,315		2,079,239
Accrued interest receivable	447,232		288,615
Leased vehicles, net	16,239,622		16,461,982
Furniture and equipment, net	61,653		59,873
Goodwill	74,056		74,056
Intangible assets	53,159		42,772
Other assets	967,639		1,071,020
Total assets	$	47,268,695	$	48,933,529
Liabilities and Equity
Liabilities:
Borrowings and other debt obligations	$	40,636,769	$	39,194,141
Deferred tax liabilities, net	910,448		1,468,222
Accounts payable and accrued expenses	508,290		563,277
Other liabilities	317,723		389,269
Total liabilities	$	42,373,230	$	41,614,909
Equity:
Common stock, $0.01 par value	3,162		3,392
Additional paid-in capital	624,554		1,173,262
Accumulated other comprehensive income, net	(63,705)		(26,693)
Retained earnings	4,331,454		6,168,659
Total stockholders’ equity	$	4,895,465	$	7,318,620
Total liabilities and equity	$	47,268,695	$	48,933,529

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Table 2: Condensed Consolidated Statements of Income

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	(Unaudited, Dollars in thousands, except per share amounts)
Interest on finance receivables and loans	$	1,236,600	$	1,261,098	$	2,510,419	$	2,514,678
Leased vehicle income	737,549		676,236		1,485,528		1,325,796
Other finance and interest income	2,657		11,437		10,208		21,684
Total finance and other interest income	1,976,806		1,948,771		4,006,155		3,862,158
Interest expense	308,982		330,039		637,816		664,421
Leased vehicle expense	610,861		444,442		1,163,773		888,461
Net finance and other interest income	1,056,963		1,174,290		2,204,566		2,309,276
Credit loss expense	861,896		430,676		1,769,783		981,555
Net finance and other interest income after credit loss expense	195,067		743,614		434,783		1,327,721
Profit sharing	11,530		13,345		25,825		20,313
Net finance and other interest income after credit loss expense and profit sharing	183,537		730,269		408,958		1,307,408
Investment losses, net	(147,582)		(84,787)		(211,008)		(151,884)
Servicing fee income	19,120		25,002		38,223		48,808
Fees, commissions, and other	82,069		90,196		177,199		184,572
Total other income	(46,393)		30,411		4,414		81,496
Compensation and benefits	127,643		122,678		260,969		250,572
Repossession expense	22,289		69,699		79,951		140,559
Other expenses	116,747		88,272		208,432		180,475
Total other expenses	266,679		280,649		549,352		571,606
Income (loss) before income taxes	(129,535)		480,031		(135,980)		817,298
Income tax expense	(32,857)		111,764		(35,315)		201,528
Net income (loss)	$	(96,678)	$	368,267	$	(100,665)	$	615,770
Net income per common share (basic)	$	(0.30)	$	1.05	$	(0.31)	$	1.75
Net income per common share (diluted)	$	(0.30)	$	1.05	$	(0.31)	$	1.75
Weighted average common shares (basic)	319,773,636		351,106,197		326,899,844		351,309,700
Weighted average common shares (diluted)	$	319,878,145	$	351,556,349	$	327,137,104	$	351,825,554
Number of shares outstanding	316,235,387		348,130,140		316,235,387		348,130,140

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Table 3: Other Financial Information

	Three Months Ended June 30,						Six Months Ended June 30,
Ratios (Unaudited, Dollars in thousands)	2020			2019			2020			2019
Yield on retail installment contracts	14.8		%	16.1		%	15.0		%	16.1		%
Yield on leased vehicles	2.9		%	5.8		%	3.7		%	5.6		%
Yield on personal loans, held for sale (1)	25.6		%	26.3		%	26.0		%	26.2		%
Yield on earning assets (2)	10.9		%	12.9		%	11.4		%	12.9		%
Cost of debt (3)	3.1		%	3.7		%	3.2		%	3.7		%
Net interest margin (4)	8.4		%	10.1		%	8.8		%	10.0		%
Expense ratio (5)	1.7		%	2.0		%	1.8		%	2.1		%
Return on average assets (6)	(0.8)		%	3.2		%	(0.4)		%	2.7		%
Return on average equity (7)	(7.7)		%	20.3		%	(3.6)		%	17.2		%
Net charge-off ratio on individually acquired retail installment contracts (8)	6.0		%	6.4		%	6.9		%	7.5		%
Net charge-off ratio (8)	6.0		%	6.4		%	6.9		%	7.5		%
Delinquency ratio on individually acquired retail installment contracts held for investment, end of period (9)	2.4		%	4.7		%	2.4		%	4.7		%
Delinquency ratio on loans held for investment, end of period (9)	2.4		%	4.7		%	2.4		%	4.7		%
Allowance ratio (10)	19.2		%	10.8		%	19.2		%	10.8		%
Common stock dividend payout ratio (11)	*			19.1		%	*			22.8		%
Common Equity Tier 1 capital ratio (12)	13.4		%	15.7		%	13.4		%	15.7		%
Charge-offs, net of recoveries, on individually acquired retail installment contracts	$	461,014		$	462,427		$	1,054,060		$	1,077,631
Total charge-offs, net of recoveries	461,925			464,277			$	1,055,524		$	1,079,892
End of period delinquent amortized cost over 59 days, retail installment contracts held for investment	743,693			1,367,310			743,693			1,367,310
End of period personal loans delinquent principal over 59 days, held for sale	127,504			167,033			127,504			167,033
End of period delinquent amortized cost over 59 days, loans held for investment	744,170			1,368,427			744,170			1,368,427
End of period assets covered by allowance for credit losses	30,522,963			29,007,585			30,522,963			29,007,585
End of period gross retail installment contracts held for investment	30,492,634			28,971,311			30,492,634			28,971,311
End of period gross retail installment contracts held for sale	1,718,244			321,503			1,718,244			321,503
End of period gross personal loans held for sale	1,283,183			1,364,956			1,283,183			1,364,956
End of period gross finance receivables and loans held for investment	30,496,308			29,009,846			30,496,308			29,009,846
End of period gross finance receivables, loans, and leases held for investment	47,729,637			45,557,709			47,729,637			45,557,709
Average gross retail installment contracts held for investment	30,493,604			29,017,122			30,586,535			28,816,732
Average gross retail installment contracts held for sale	1,363,876			321,503			1,363,876			321,503
Average gross retail installment contracts held for investment and held for sale	31,193,215			29,070,738			31,017,842			28,834,640
Average gross personal loans held for sale	1,307,609			1,375,306			1,363,023			1,424,717
Average gross finance receivables and loans	32,554,978			30,507,780			32,438,109			30,321,739
Average gross operating leases	17,492,255			16,043,654			17,584,849			15,752,705
Average gross finance receivables, loans, and leases	50,047,233			46,551,434			50,022,958			46,074,444
Average managed assets	61,001,767			55,545,503			60,652,091			55,043,583
Average total assets	46,876,726			45,700,887			47,308,997			45,101,873
Average debt	40,113,885			36,152,602			39,858,355			35,715,392
Average total equity	5,033,773			7,273,470			5,573,544			7,163,738

(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.

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(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

(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 and six months ended June 30, 2020 has not been disclosed since the earnings per share for the three and six months ended June 30, 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 8 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 and six months ended June 30, 2020 and 2019 was as follows (Unaudited, Dollar amounts in thousands):

	Three Months Ended June 30, 2020				Three Months Ended June 30, 2019
	Retail Installment Contracts				Retail Installment Contracts
Allowance for Credit Loss	Non-TDR		TDR		Non-TDR		TDR
Balance — beginning of period	$	4,482,663	$	973,236	$	1,891,351	$	1,280,649
Credit loss expense (a)	744,511		116,419		348,817		59,806
Charge-offs (b)	(721,218)		(127,617)		(795,901)		(369,523)
Recoveries	312,231		75,590		517,626		185,371
Balance — end of period	$	4,818,187	$	1,037,628	$	1,961,893	$	1,156,303

	Six Months Ended June 30, 2020				Six Months Ended June 30, 2019
	Retail Installment Contracts				Retail Installment Contracts
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 (a)	1,501,704		267,268		795,305		164,419
Charge-offs (b)	(1,620,768)		(417,184)		(1,723,358)		(836,160)
Recoveries	782,900		200,993		1,070,586		411,301
Balance — end of period	$	4,818,187	$	1,037,628	$	1,961,893	$	1,156,303

(a) Excluded from the credit loss expense is $39 million related to retail installment contracts sold in an off balance sheet securitization during the three and six months ended June 30, 2020. In addition, credit loss expense excludes $12 million related to retail installment contracts transferred to held for sale during the three and six months ended June 30, 2020. Furthermore, credit loss expense includes $20 million related to retail installment contracts transferred to held for sale during the three and six months ended June 30, 2019.

(b) 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 June 30, 2020 and December 31, 2019 is as follows (Unaudited, Dollar amounts in thousands):

Delinquent Balance	June 30, 2020
	Amount		Percent
Amortized cost, 30-59 days past due	1,308,305		4.3	%
Delinquent amortized cost over 59 days	743,693		2.4	%
Total delinquent balance at amortized cost	$	2,051,998	6.7	%
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 June 30, 2020 and December 31, 2019 (Unaudited, Dollar amounts in thousands):

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Nonaccrual Balance	June 30, 2020
	Amount		Percent
Non-TDR	622,126		2.0	%
TDR	242,037		0.8	%
Total non-accrual loans (a)	$	864,163	2.8	%

(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.

The table below presents the Company’s allowance ratio for TDR and non-TDR individually acquired retail installment contracts as of June 30, 2020 and December 31, 2019 (Unaudited, Dollar amounts in thousands):

Allowance Ratios	June 30, 2020			December 31, 2019
TDR - Unpaid principal balance	$	3,946,808		$	3,859,040
TDR - Impairment	1,037,628			914,718
TDR - Allowance ratio	26.3		%	23.7		%
Non-TDR - Unpaid principal balance	$	26,527,943		$	26,895,551
Non-TDR - Allowance	4,818,187			2,123,878
Non-TDR Allowance ratio	18.2		%	7.9		%
Total - Unpaid principal balance	$	30,474,751		$	30,754,591
Total - Allowance	5,855,815			3,038,596
Total - Allowance ratio	19.2		%	9.9		%

The Company’s allowance for credit losses increased $0.4 billion and $2.8 billion for the three and six months ended June 30, 2020. For the three months ended June 30, 2020, the increase was primarily due to a reserve build associated with a weaker economic outlook related to COVID-19, partially offset by declines in balances. For the six months ended June 30, 2020, the primary drivers were $2.1 billion increase at CECL adoption on January 1, 2020, driven mainly by the addition of lifetime expected credit losses for non-TDR loans, and additional reserves specific to COVID-19 risk, partially offset by decline in balances.

11

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						Six Months Ended						Three Months Ended
	June 30, 2020			June 30, 2019			June 30, 2020			June 30, 2019			March 31, 2020
Retained Originations	(Unaudited, Dollar amounts in thousands)
Retail installment contracts	$	5,098,496		$	3,949,648		$	8,832,741		$	7,975,975		$	3,846,226
Average APR	11.7		%	16.2		%	13.3 %			16.7		%	15.3		%
Average FICO® (a)	657			601			635			597			607
Discount	(0.9)		%	(0.5)		%	(0.8)		%	(0.3)		%	(0.8)		%
Personal loans (b)	347,238			343,214			618,073			631,770			$	270,835
Average APR	29.6		%	29.7		%	29.5		%	29.8		%	29.8		%
Leased vehicles	986,617			2,520,130			3,007,338			4,483,710			$	2,020,721
Finance lease	1,927			4,822			4,929			$	8,129		$	3,002
Total originations retained	$	6,434,278		$	6,817,814		$	12,463,081		$	13,099,584		$	6,140,784
Sold Originations
Retail installment contracts	$	—		$	—		$	111,981		$	—		$	—
Average APR	—		%	—		%	4.4 %			—		%	—		%
Average FICO® (c)	—			—			722			—			—
Total originations sold	$	—		$	—		$	111,981		$	—		$	—
Total originations (excluding SBNA Originations Program)	$	6,434,278		$	6,817,814		$	12,575,062		$	13,099,584		$	6,140,784

(a)Unpaid principal balance excluded from the weighted average FICO score is $586 million, $448 million, $1.0 billion, $941 million and $432 million for the three months ended June 30, 2020 and 2019, the six months ended June 30, 2020 and 2019, and for the three months ended March 31, 2020, as the borrowers on these loans did not have FICO scores at origination. Of these amounts, $102 million, $141 million, $241 million, $247 million and $139 million, respectively, were commercial loans.

(b)Included in the total origination volume is $58 million, $51 million, $79 million, $76 million and $21 million for the three months ended June 30, 2020 and 2019, the six months ended June 30, 2020 and 2019, and for the three months ended March 31, 2020, respectively, related to newly opened accounts.

(c)Unpaid principal balance excluded from the weighted average FICO score is $9 million for the six months ended June 30, 2020, as the borrowers on these loans did not have FICO scores at origination.

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 $1.7 billion and $2.8 billion of retail installment contacts during the three and six months ended June 30, 2020, respectively.

12

Table 6: Asset Sales

	Three Months Ended						Six Months Ended						Three Months Ended
	June 30, 2020			June 30, 2019			June 30, 2020			June 30, 2019			March 31, 2020
Assets Sold	(Unaudited, Dollar amounts in thousands)
Retail installment contracts	$	512,286		$	—		$	512,286		$	—		$	—
Average APR	6.4		%	—		%	6.4		%	—		%	—		%
Average FICO®	$	691		—			691			—			—

13

Table 7: Ending Portfolio

Ending outstanding balance, average APR and remaining unaccreted net discount of our held for investment portfolio as of June 30, 2020 and December 31, 2019, are as follows:

	June 30, 2020			December 31, 2019
	(Unaudited, Dollar amounts in thousands)
Retail installment contracts	$	30,492,634		$	30,776,038
Average APR	15.4		%	16.1		%
Discount	0.03		%	0.3		%
Receivables from dealers	$	3,675		$	12,668
Average APR	3.9		%	4.0		%
Leased vehicles	$	17,206,674		$	17,562,782
Finance leases	$	26,655		$	27,584

14

Table 8: Reconciliation of Non-GAAP Measures

	June 30, 2020			June 30, 2019
	(Unaudited, Dollar amounts in thousands)
Total equity	$	4,895,465		$	7,337,261
Add: Adjustment due to CECL capital relief (c)	1,769,430			—
Deduct: Goodwill, intangibles, and other assets, net of deferred tax liabilities	154,943			152,264
Deduct: Accumulated other comprehensive income (loss), net	(63,705)			(21,568)
Tier 1 common capital	$	6,573,657		$	7,206,565
Risk weighted assets (a)(c)	48,997,902			45,849,574
Common Equity Tier 1 capital ratio (b)(c)	13.4		%	15.7		%

(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.

15

EX-99.2

Exhibit 99.2 Second Quarter 2020 July 29, 2020

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

COVID-19 SC’s COVID-19 Relief Efforts ► 95%+ employees working from home Employees ► Temporary Emergency Paid Leave Program ► Premium compensation to frontline employees 1 Customers ► Granted ~730,000 loan and ~70,000 lease deferrals since the beginning of the pandemic ► Enhanced digital tools to manage accounts ► First payment deferred 90 days on select new FCA models FCA/Dealers ► 0% Annual Percentage Rate 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 1 Data from March 1, 2020 – June 30, 2020 3

Earnings Highlights Earnings Impacted by Reserves Balance Sheet and Liquidity Remain Strong ► $400M of incremental reserves due to macroeconomic factors, primarily driven by COVID-19 Reserves ► Allowance ratio of 19.2%, up 140bps from Q1 2020 allowance ratio ► Total auto originations of ~$7.8B in Q2 2020, down 7% versus prior year quarter Originations ► FCA penetration rate of 37%, up from 36% in Q2 2019 ► Early stage delinquency ratio of 4.3%, down 510 bps YoY Credit ► Late stage delinquency ratio of 2.4%, down 230 bps YoY Performance ► Gross charge-off ratio of 11.1%, down 500 bps YoY ► Net charge-off ratio of 6.0%, down 40 bps YoY ► Access to funding has improved in Q2 notwithstanding COVID-19 stress Liquidity & • ABS market demand at recent highs, issued $1.9 billion in new ABS • $2.0B in liquidity from Banco Santander Capital • $0.7B in additional private term financings ► CET1 Ratio of 13.4% 4

Economic Indicators Consumer Confidence1 118.9 126.4 121.5 101.4 98.0 Consumer confidence index lower due to the 81.4 85.2 98.1 economic impact of the pandemic 58.5 62.0 50.4 49.3 52.9 U.S. Unemployment Statistics2 9.5% 9.4% 9.1% Unemployment rate of 11.1% in June decreased from 8.2% 11.1% 7.5% 14.7% in April when the impact of stay-at-home orders 5.6% 6.1% were more severe 5.3% 4.9% 4.3% 4.0% 3.7% U.S. GDP QoQ Change3 4.2% 2.7% 2.5% 2.6% 2.7% 2.6% 2.0% US GDP decreased 5% in Q1 2020 vs Q4 2019 due to 1.7% 0.9% 1.2% 0.8% the impact of COVID-19 at the end of the quarter -4.1% -5.0% 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun 07 08 09 10 11 12 13 14 15 16 17 18 19 20 1 The Conference Board’s consumer confidence index, monthly data as of June 30, 2020 2 U.S. Bureau of Labor Statistics, monthly data as of June 30, 2020 5 3 U.S. Bureau of Economic Analysis, quarterly data as of June 30, 2020

Auto Industry Overview New Vehicle SAAR1 17.3 17.2 17.1 16.6 Auto sales of 13.0M, up 15% QoQ as dealerships 13.0 and manufacturer sales increased in Q2 after the 11.4 shutdowns caused by COVID-19 Used Vehicle SAAR2 39.2 39.8 39.8 40.0 36.0 Used auto sales of 36.0M, up 13% QoQ 32.0 Used Vehicle Price Indices3 Manheim 149.3 141.9 140.5 139.9 141.1 136.0 Used vehicle prices increased to record levels in the latter half of Q2 due to pent up demand 126.8 JDP 122.0 121.8 121.6 118.4 117.9 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 1 U.S. Bureau of Economic Analysis, Light Weight Vehicle Sales: Autos and Light Trucks, monthly data as of June 30, 2020 2 Cox Automotive, 13-Month Rolling Used-Vehicle SAAR, monthly data as of June 30, 2020 6 3 Manheim, Inc.; Indexed to a basis of 100 at 1995 levels; JD Power Used-Vehicle Price Index (not seasonally adjusted), both monthly, quarter end

Quarterly Originations Lower volumes year-over-year; mix-shift from lease to prime retail Three Months Ended Originations % Variance ($ in Millions) Q2 2020 Q1 2020 Q2 2019 QoQ YoY Total Core Retail Auto $ 2,135 $ 2,306 $ 2,414 (7%) (12%) Chrysler Capital Loans (<640)1 1,131 1,190 1,473 (5%) (23%) Chrysler Capital Loans (≥640)1 3,557 1,432 1,980 148% 80% Total Chrysler Capital Retail 4,688 2,622 3,453 79% 36% Total Leases2 989 2,024 2,525 (51%) (61%) Total Auto Originations3 $ 7,812 $ 6,952 $ 8,392 12% (7%) Asset Sales4 $ 512 - - NA NA SBNA Originations4 $ 1,724 $ 1,081 $ 1,917 59% (10%) 1 Approximate FICOs 2 Includes nominal capital lease originations 7 3 Includes SBNA Originations 4 Asset Sales and SBNA Originations remain off of SC’s balance sheet in the Service For Others portfolio

Year-to-Date Monthly Originations Core Retail Auto ($ in millions) Chrysler Lease1 ($ in millions)1 60.0% $1,200 60.0% $1,000 55.0% $1,000 55.0% $800 $800 50.0% 50.0% $600 $600 45.0% 45.0% $400 $400 40.0% 40.0% $200 $200 35.0% 35.0% $0 30.0% $0 30.0% Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun YoY (4.1%) (14.0%) (17.0%) (43.6%) (8.4%) 22.8% YoY 13.7% 16.5% (18.3%) (72.8%) (63.5%) (47.7%) Chrysler Capital Loans, <6402 ($ in millions) Chrysler Capital Loans, ≥6402 ($ in millions) $600 60.0% $1,400 26500.0% 24500.0% $500 55.0% $1,200 $1,000 22500.0% $400 50.0% $800 20500.0% $300 45.0% $600 18500.0% $200 40.0% $400 16500.0% 35.0% $100 $200 14500.0% $0 30.0% $0 12500.0% Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun YoY (6.9%) (13.0%) (12.1%) (40.2%) (24.0%) (5.3%) YoY 21.8% 21.6% 45.0% 125.0% 78.9% 45.4% 1 Includes nominal capital lease originations 2019 2020 8 2 Approximate FICOs

Fiat Chrysler (FCA) Relationship SC continues to partner with FCA, recently through incentive programs • First payment deferred 90 days on select new FCA models • 0% Annual Percentage Rate on select new FCA models FCA Sales1 (units in ‘000s) Chrysler Penetration Rate2 598 565 38.9% 543 36.1% 35.7% 37.1% 447 31.9% 367 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 1 FCA filings; sales as reported on 07/03/2020 2 Auto loans and leases financed by Chrysler Capital 9

Serviced for Others (SFO) Platform Stable balances Serviced for Others Balances, End of Period ($ in Millions) $10,727 $10,414 $10,331 QoQ $9,979 12% $9,282 15% 15% 20% Serviced for others balance growth driven by prime originations from FCA 26% and the SBNA program 88% 85% 85% Off-balance sheet securitization of 80% ~$500M also added to the SFO 74% platform 2Q19 3Q19 4Q19 1Q20 2Q20 Related Party 3rd Party 10

Diversified Funding and Liquidity Total unutilized capacity of approximately $11 billion at the end of Q2 2020 Asset-Backed Securities1 ($ in Billions) Financings ($ in billions) 1 2 $18.2 $17.9 Amortizing Revolving $11.8 $11.7 $9.9 $9.6 5.2 7.8 Unused Used 6.5 3.9 Q1 2020 Q2 2020 Q1 2020 Q2 2020 Q1 2020 Q2 2020 ➢ $1.9B of new issuance in Q2: 1 SDART, 1 DRIVE ➢ ~$770M of private term financings in Q2 ➢ 66% unused capacity on warehouse lines from 13 lenders Santander2 ($ in billions) Asset Sales ($ in billions) $12.2 0.5 $2.2 2.5 $8.7 Revolving 0.5 0.5 Asset Sales 2.5 Contingent $1.1 9.2 Term 1.7 SBNA 5.7 1.1 Originations Q1 2020 Q2 2020 Q1 2020 Q2 2020 ➢ $3.5B in new term funding in Q2 ➢ Off-balance sheet securitization of ~$500M ➢ $3.0B in unutilized revolving and contingent liquidity ➢ Strong originations through the SBNA partnership 1 Total outstanding as of June 30, 2020 11 2 Total commitment as of June 30, 2020

Q2 2020 Financial Results Three Months Ended (Unaudited, Dollars in Thousands, except per share) June 30, 2020 March 31, 2020 June 30, 2019 Interest on finance receivables and loans $ 1,236,600 $ 1,273,819 $ 1,261,098 Net leased vehicle income 126,688 195,067 231,794 Other finance and interest income 2,657 7,551 11,437 Interest expense 308,982 328,834 330,039 Net finance and other interest income $ 1,056,963 $ 1,147,603 $ 1,174,290 Credit Loss Expense 861,896 907,887 430,676 Profit sharing 11,530 14,295 13,345 Total other income (46,393) 50,807 30,411 Total operating expenses 266,679 282,673 280,649 Income before tax $ (129,535) $ (6,445) $ 480,031 Income tax expense (32,857) (2,458) 111,764 Net income $ (96,678) $ (3,987) $ 368,267 Diluted EPS ($) $ (0.30) $ (0.01) $ 1.05 Average total assets $ 46,876,726 $ 47,690,751 $ 45,700,887 Average managed assets $ 61,001,767 $ 60,207,338 $ 55,545,503 12

Customer Relief Loan Deferrals Deferrals as a % of active accounts peaked at 27.0% on May 22 and have declined through end of Q2 to 17.7% Granted ~730,000 loan deferrals since the beginning of the pandemic1 Percent Deferred by Day 30.0% 27.0% 25.0% 20.0% 17.7% 15.0% % of Active Accountsof Active % 10.0% 5.0% 0.0% 1 Data from March 1, 2020 – June 30, 2020 13

Delinquency & Loss (Quarterly) Delinquency Ratios: 30-59 Days Delinquent, RICs, HFI COVID-19 hardship relief programs led to lower delinquencies and charge-offs during the period 9.4% 9.5% 9.7% 8.4% 8.3% 4.3% Early stage delinquencies decreased 510 bps YoY Delinquency Ratios: >59 Days Delinquent, RICs, HFI 5.1% 4.7% 4.7% 4.6% 4.2% Late stage delinquencies decreased 230 bps YoY 2.4% Gross Charge-off Rates 19.5% 18.3% 17.3% 16.1% 15.5% Gross charge-off rates decreased 500 bps YoY 11.1% SC Recovery Rates1 60.3% 55.9% 55.9% 52.2% SC’s Q2 recovery rate of 45.7% reflects lower 50.1% 45.7% recoveries due to reduced repossessions and units sold Net Charge-off Rates2 8.6% 8.3% 8.1% 7.7% Net charge-offs decreased 40 bps YoY 6.4% 6.0% Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 1 Recovery Rate – Per the financial statements includes insurance proceeds, bankruptcy/deficiency sales, and timing impacts 2 Net Charge-off rates on retail installment contracts, held for investment 14

Loss and Recovery Ratios (Annualized) Gross Charge-off Ratio (%) Recovery Rates (%) 25.0% 75.0% 20.0% 65.0% 15.0% 55.0% 10.0% 45.0% 5.0% 35.0% 0.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 25.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 22.3 19.1 17.0 16.1 16.1 15.8 17.9 18.4 18.5 18.3 17.1 16.1 2019 49.0 54.6 66.1 62.5 62.4 56.0 55.2 59.2 53.2 52.9 57.5 46.2 2020 17.2 15.6 13.7 12.9 12.6 8.1 2020 46.0 53.0 52.1 32.1 49.1 62.1 Net Charge-off Ratio (%) 15.0% 12.0% 9.0% 6.0% 3.0% 0.0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 11.3 8.7 5.8 6.1 6.1 7.0 8.0 7.5 8.6 8.6 7.3 8.7 2020 9.3 7.3 6.6 8.7 6.4 3.1 2019 2020 15

Loss Detail Q2 2019 to Q2 2020: Net Charge-off Walk, ($ in millions) Net charge-offs for RICs decreased ~$1M versus prior year quarter to $33 $461M ($153) $119 $462 $461 $119M increase in losses due to lower recoveries YoY and $33M increase due to higher loan balances $153M decrease due to a lower gross charge-off rate and other items YoY Q2 2019 Recoveries Balance Gross Loss Q2Q1 2020 2020 Performance & Other 16

Reserves 1 Q1 2020 to Q2 2020 Allowance for Credit Loss Walk (RICs, HFI $ in millions) ($36) Allowance for credit loss increased by $400M QoQ and allowance to loans ratio $436 increased 140 bps driven by macroeconomic factors primarily related to $5,856 $5,856 COVID-19 $5,456 $5,456 1Q 2020 Economic Factors Portfolio Changes - 2Q 2020 (Primarily COVID) Volume Credit Loss Expense and Allowance Ratio ($ in millions) 19.2% Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 17.8% 0.2 $1,200 0.18 Credit loss expense increased $430M YoY 16.5% 0.16 $1,000 0.14 $800 10.8% $908 0.12 10.5% 9.9% $861 0.1 $600 0.08 $567 $545 $400 0.06 $431 0.04 $200 0.02 $0 0 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Credit loss expense Day 1 Allowance Ratio Allowance Ratio 17 1 Allowance for credit loss related to retail installment contracts, held for investment

Allowance for Credit Loss Dollars in Millions (Unaudited) (Unaudited) (Audited) As of the end of Q2 2020, total allowance June 30, March 31, December 31, Allowance Ratios increased $400M compared to Q1 2020, 2020 2020 2019 driven by macroeconomic factors primarily related to COVID-19 TDR Unpaid principal balance $3,947 $3,560 $3,859 TDR Impairment $1,038 $973 $915 • TDR balance growth for the first time since 2017 TDR Allowance ratio 26.3% 28.1% 23.7% • Non-TDR coverage ratio up due to COVID-19 related extensions not Non-TDR Unpaid principal balance $26,528 $27,262 $26,896 classified as TDRs Non-TDR Allowance $4,818 $4,483 $2,124 • Total allowance coverage ratio Non-TDR Allowance ratio 18.2% 16.4% 7.9% increased to 19.2% or $5.9B • Allowance is ~90% of DFAST losses under the severely adverse scenario Total Unpaid principal balance $30,475 $30,722 $30,755 Total Allowance $5,856 $5,456 $3,039 Total Allowance ratio 19.2% 17.8% 9.9% 18

Expense Management Operating expenses Operating Expenses ($ in Millions) totaled $267M, $400 7.0% $350 $329 $309 6.0% expense ratio down $300 $281 $283 $267 5.0% 30bps YoY $250 4.0% $200 2.3% 3.0% $150 2.0% 2.1% Operating expenses decreased $14M 1.9% 1.7% 2.0% YoY primarily driven by lower $100 repossession expense 1.0% $50 $0 0.0% 2Q19 3Q19 4Q19 1Q20 2Q20 Operating Expense Expense Ratio 19

CET1 Ratio 1 Common Equity Tier 1 Capital Ratio $120,000 18.0% Strong capital 15.7% 15.4% 16.0% 14.8% $110,000 base 13.8% 13.4% 14.0% $100,000 12.0% SC maintains strong capital levels in addition to its loan loss reserves 10.0% $90,000 8.0% Under the Federal Reserve's interim policy, SC cannot pay a dividend or buy $80,000 6.0% back shares 4.0% $70,000 2.0% $60,000 0.0% Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Tier 1 common capital $7,207 $7,226 $7,193 $6,726 $6,574 Risk weighted assets2 $45,850 $46,870 $48,762 $48,830 $48,998 CET1 15.7% 15.4% 14.8% 13.8% 13.4% 1 CET1 is calculated under Basel III regulations required as of January 1, 2015. Please see the appendix 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 20 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 $6,823 $6,192 $5,867 $5,674 $4,927 41% 55% 41% 40% 36% 15% 14% 14% 15% 10% 22% 23% 21% 24% 15% 9% 9% 10% 11% 7% 14% 14% 15% 14% 13% 2Q19 3Q19 4Q19 1Q20 2Q20 No FICO 2 <540 540-599 600-639 >640 Total Average Loan Balance in Dollars $25,565 $25,627 $25,706 $24,776 $28,820 New/Used Originations $6,823 $6,192 $5,867 $5,674 $4,927 34% 39% 38% 39% 45% 66% 62% 61% 61% 55% 2Q19 3Q19 4Q19 1Q20 2Q20 New Used 1 RIC; Retail Installment Contract 2 No FICO score obtained; Includes commercial loans. 22

Heldfor InvestmentCredit Trends Retail Installment RetailInstallment Contracts 2.1% Commercial 2.2% Q2 2019 2.4% 2.5% 2.6% 1 10.9% Unknown 10.6% 1 10.0% Held for investment; excludes assets held for sale forheld assets excludes investment; Held for Q3 2019 12.4% 10.1% 18.8% 17.9% <540 16.9% 16.7% Q4 2019 16.7% 33.2% 540-599 32.9% 31.9% 31.9% 32.6% Q1 2020 18.9% 600-639 19.0% 19.0% 18.9% 19.2% Q2 2020 16.1% >=640 17.4% 19.8% 17.5% 23 18.8%

Excluding Personal Lending Detail Personal lending loss of $19M before operating expenses and taxes in Q2 2020 Three Months Ended, (Unaudited, Dollars in Thousands) June 30, 2020 March 31, 2020 June 30, 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 $ 1,236,600 $ 83,808 $ 1,152,792 $ 1,273,819 $ 93,541 $ 1,180,278 $ 1,261,098 $ 90,323 $ 1,170,775 Net leased vehicle income 126,688 - 126,688 195,067 - 195,067 231,794 - 231,794 Other finance and interest income 2,657 - 2,657 7,551 - 7,551 11,437 - 11,437 Interest expense 308,982 11,016 297,966 328,834 12,205 316,629 330,039 12,099 317,940 Net finance and other interest income $ 1,056,963 $ 72,793 $ 984,170 $ 1,147,603 $ 81,336 $ 1,066,267 $ 1,174,290 $ 78,224 $ 1,096,066 Provision for credit losses $ 861,896 - $ 861,896 $ 907,887 - $ 907,887 $ 430,676 $ 1,070 $ 429,606 Profit sharing 11,530 6,587 4,943 14,295 (93) 14,388 13,345 - 13,345 Investment gains (losses), net1 $ (147,582) $ (121,642) $ (25,940) $ (63,426) $ (62,958) $ (468) $ (84,787) $ (84,021) $ (766) Servicing fee income 19,120 - 19,120 19,103 - 19,103 25,002 - 25,002 Fees, commissions and other 82,069 36,911 45,158 95,130 49,522 45,608 90,196 46,800 43,396 Total other income $ (46,393) $ (84,731) $ 38,338 $ 50,807 $ (13,436) $ 64,243 $ 30,411 $ (37,221) $ 67,632 Average gross individually acquired retail installment $ 31,193,215 - $ 30,768,423 - $ 29,070,738 - contracts, held for investment and held for sale Average gross personal loans - $ 1,307,609 - $ 1,413,021 - $ 1,375,306 Average gross operating leases $ 17,492,255 - $ 17,735,640 - $ 16,043,654 - 1 The current period losses were primarily driven by $122 million of lower of cost or market adjustments related to the held for sale personal ..lending portfolio, comprised of $87 million in customer default activity, and a $35 million in market discount. 24

Reconciliation of Non-GAAP Measures Three Months Ended (Unaudited, Dollars in Thousands) Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Total equity $4,895,465 $5,146,103 $7,318,620 $7,345,202 $7,337,261 Deduct: Goodwill and intangibles 127,215 121,879 116,828 110,683 108,173 Tangible common equity $4,768,250 $5,024,224 $7,201,792 $7,234,519 $7,229,088 Total assets $47,268,695 $47,106,931 $48,933,529 $47,279,015 $46,416,093 Deduct: Goodwill and intangibles 127,215 121,879 116,828 110,683 108,173 Tangible assets $47,141,480 $46,985,052 $48,816,701 $47,168,332 $46,307,920 Equity to assets ratio 10.4% 10.9% 15.0% 15.5% 15.8% Tangible common equity to tangible assets 10.1% 10.7% 14.8% 15.3% 15.6% Total equity $4,895,465 $5,146,103 $7,318,620 $7,345,202 $7,337,261 Add: Adjustment due to CECL capital relief (c) 1,769,430 1,669,466 - - - Deduct: Goodwill and other intangible assets, net 154,943 153,712 of DTL 152,756 150,644 152,264 Deduct: Accumulated other comprehensive income, net (63,705) (63,655) (26,693) (31,836) (21,568) Tier 1 common capital $6,573,657 $6,725,512 $7,192,557 $7,226,394 $7,206,565 Risk weighted assets (a,c) $48,997,902 $48,829,941 $48,761,825 $46,870,019 $45,849,574 Common Equity Tier 1 capital ratio (b,c) 13.4% 13.8% 14.8% 15.4% 15.7% 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 since 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. 25

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