TOTALES DISCURSO: Ana Botín | Junta General Accionistas 2020 | Banco Santander

COVID-19 is a global health crisis leading to an unprecedented economic and social crisis. Society is showing its best, and we all have individual responsibility. Companies are part of the solution; we must protect employees and support clients. At Santander, over 100,000 people are teleworking. In Spain, we closed many offices to minimize exposure but continue serving clients. We committed to no layoffs in Spain and other countries during the crisis. We created a fund of at least €25 million to buy and donate medical equipment, funded by executive and board pay cuts. José Antonio and I cut 50% of our total compensation, and non-executive directors cut 20%. So far, we have donated 2,000 beds to the field hospital in IFEMA Madrid, purchased masks and 500 non-invasive ventilators for Spain's health ministry, and allocated another €2 million for more ventilators. Our responsibilities extend to supporting clients—both individuals and businesses. This is not a financial crisis like 2008; banks are stronger and part of the solution. Following the ECB recommendation, our board decided to review dividend policy: we will not propose a dividend distribution until there is more visibility on COVID-19's effects, and we withdrew the 2019 profit distribution from the agenda, canceling the supplementary dividend. A new shareholder meeting in October may consider a payment subject to supervisor approval. This cancellation frees up €1.6 billion in capital, enabling €30 billion more in loans to businesses, SMEs, and families. Combined with canceling the 2020 dividend policy, we can offer an additional €60 billion in credit, totaling €90 billion—equivalent to about 80 basis points of additional capital. Governments must provide liquidity to companies and households to make the economic crisis as short as possible and avoid destroying the business fabric. Most companies need government support to maintain jobs. We must plan the return to work for the young and immunized while protecting the vulnerable. Europe has long been a reference for welfare; it must now lead a faster, more coordinated response. Solidarity is essential. To exit the economic crisis, we need entrepreneurs who invest and create jobs. 2019 was a record year for organic capital generation: we generated €9.4 billion, strengthening our balance sheet to a CET1 ratio of 11.65% despite regulatory impacts. This strong capital buffer helps us face the current crisis. Digital transformation is critical, as clients are increasingly trusting digital banking. It is too early to quantify the total impact, but the short-term effect will be significant. Our Q1 2020 ordinary results are in line with Q1 2019, with marginal COVID-19 impact so far. Daily credit production in March grew 16% compared to February, showing we are already supporting clients. We expect our CET1 ratio in Q1 to be in line with year-end 2019, including inorganic operations. We will continue working to support recovery and sustainable, inclusive growth. We must seize this opportunity to strengthen our economy by supporting entrepreneurs, who enable our social model. We need proactive policies to attract investment, talent, and innovation to compete with Europe and the world.