Javier Marín Romano – CEO Jose Antonio Alvarez –CFO Juan Manuel Cendoya Mendez de Vigo – EVP, Communication, Corporate Marketing and Research Javier Marín Romano: Okay. We’ll start. Good morning to everybody. Welcome to Santander’s First Half Results Presentation. Jose Antonio Alvarez, CFO of the Bank; and Manuel Cendoya de Vigo will be joining me for this presentation. As usual, I will begin with some key facts and figures for the Group. Later on, Jose Antonio will do the same with the respect to the individual units. And then, we will open – I will close with a few conclusions, and then we will open the – some time for Q&A. Let me start with a few highlights of what has been the second quarter for the bank. Santander continues to develop its business on a very complex macroeconomic and regulatory environment. The Group maintained the priorities of previous quarters; strong balance sheet in terms of liquidity and capital, and reinforcing underlying results offsetting external impacts in several units. Some key features, business volumes reflect the macroeconomic situation of the countries where we operate and the strategy of bolstering the balance sheet vis-à-vis in a sharp negative impact from exchange rates. Excluding it for management purposes, the Group’s deposits grew 7% and loans decreased 2% while de-leveraging in some countries. As a result, there was a further improvement in liquidity with a ratio of loan-to-deposits already moving into 107% which is a very comfortable ratio for us. There was a very strong organic generation of capital in the quarter, 44 basis points with a BIS II ratio rising to 11.11%, and of course very comfortably in order to meet the Basel 3 requirements for the end of the year. Of note in results were revenue stability, with some countries recovering…

Good morning. As Javier said, I am going to elaborate about the business, the different divisions. Let me start with the chart that shows where the profit comes from by geographies. In reality few changes here, basically we get 56% of the profits coming from emerging markets of which 25% is Brazil, Mexico represents 12%, Chile and Poland 5%, 6%. In matured markets, we have the US and UK with 12%, 13% and Spain represents 8% and Germany 5%. Let me start to analyze the activity of results of the different business areas with Spain. The first thing I should say is in the second quarter we completed legal measures [ph] between the three banks in Spain. The parent company balanced our money [ph]. We are going according to the schedule, a little bit ahead in commercial terms, and while we do see the results basically the synergies we are now coming through the P&L in the next quarters. In relation with the activity in the quarter, let me to highlight that we continue to gain market share particularly in deposits and mutual funds, also in loans in this quarter. And probably the most important factors happened this quarter is the inflection point in the net interest income. The net interest income grew 4% compared with the first quarter, and I think that this is a change in the trend on the net interest income as it has been falling for several quarters in a row. While you don’t see these better net interest income in the gross income, because the failing gains in this quarter were lower due to the lower banking markets – seasonally lower banking markets produced less trading gains in the second quarter. So in the provisionary as Javier elaborated on this, more provision due to…

Good morning. Thank you, Javier, Jose Antonio. Welcome to the Q&A part of the presentation. As always, we will try and cover as questions received through the web, through internet and if we have time at the end, we will also welcome questions coming through the phone. As we have done in previous occasions, I will try to organize questions through different things. First one, being the strategy regulation and perspectives of the Group. First question will come from Andrea Filtri from Mediobanca about our opinion on the EU Council proposal and banking supervision and regulation and results, and if we expect any impact on funding costs with regards to this potential changes? Javier Marín Romano: Okay, thank you, Andrea. We are very positive about the European Banking Union. I think this is our first step towards this. For us we actually think that that at some point our cost of our financing should come down as we mentioned over the presentation that our capital on an average go over more than 9% of the liabilities of the bank. So I believe that it creates a more level playing field for the European banks, and thus we should be benefited from this.

Also linked to the European situation, Britta Schmidt from Autonomous asks about the AQR, the Asset Quality Review, what are management expectation for these stress both for Santander and for the European sector more generally speaking? Javier Marín Romano: Well for the European sector I have no expectations. I don’t know exactly, what’s the individual situation of the rest of the banks. In our case, we are very comfortable. We went through the stress test only a year ago. We have – as you have seen, we have strengthened our capital base, we have strengthened our balance and we expect to come out of this new stress test that should take place over the first half of next year with very good results.

With regards to M&A, Rohith Chandra from Barclays, Carlos Peixoto from BPI, and Britta Schmidt also from Autonomous make follow-on questions, which is what are our views on M&A in Spain specifically or elsewhere? And also what our thoughts, if we are interested in Catalunya Bank or NovaCaixaGalicia, and which of the two would better strategically fit our strategy in Spain? Javier Marín Romano: Well in general terms it will depend on the geographies. As I said before, our first objective is organic growth. However, we’ve been doing quite a number of operations over the last quarters. So we did the Kredyt Bank in Poland in order to strengthen our position in the country with Zachodni. We bought GetNet that is to create the most important acquiring credit card company in Brazil. We also bought the mortgage portfolio of ING in Mexico. So actually we’re doing things. Of course, as I mentioned the priority is organic growth but then we have – we would find some opportunities we will take a look into them and provided that they fit most strategically and financially within our objectives, we will proceed. We are – as I said before, we have the capital and the liquidity levels upper period in order to (inaudible). With respect to Caixa Catalunya and NovaCaixaGalicia, our priority in Spain today is to conclude the integration of Santander Banesto Banif. The technology information – sorry, the technological integration of Banesto and Santander will conclude for individuals and SMEs by the end of the year, but we will go deep into next year in order to do the integration basically from corporates where we have a lot of tailor-made solutions for them, and we don’t want our clients to suffer. So that’s our first priority, that is going very, very…

There are several questions also with regards to IPOs. Carlos Peixoto from BPI, Britta Schmidt also from Autonomous make the following ones which is, if you could update timeframe of the different Group IPOs – subsidiaries of IPOs of course, and what is the expected impact from the IPO of Santander Consumer Finance USA, and if we have any timing preference or scale for that operation? Javier Marín Romano: With respect to the IPO of Santander Consumer USA, as you know we have filed already the register for the IPO. Well sometime to decide whether to do it. We have not decided yet, what we will do in terms, either we might not sell any participation that the bank is holding right now and not dilute our position. So in general, I would say that it will have no – at this point, I would say that it will have no capital impact on the bank. With respect to the IPO of other units, there is nothing on the table. So we have no plans for IPO in any other unit of the Group.

There are several questions around dividends, the policy – the Group policy in the regulation or comments coming from Bank of Spain. I will try to name everybody here but Francisco Riquel from N+1, Jaime Becerril from JP, David Vaamonde, Carlos Peixoto from BPI, Rohith Chandra from Barclays, Antonio Ramirez from Keefe. The question or the questions are, which is our position with regards to dividend, dividend guidelines and with regards to the comments from Bank of Spain. If we plan to change the dividend policy, if we plan to maintain the EUR0.60 which is about to me the same question and if we can go into that guiding line into 2014 also? Javier Marín Romano: With respect to our dividend policy, is perfectly covered by the recommendation of Bank of Spain with respect to the 25% of limitation on the cash payout. So we will continue with what we advanced over at the shareholders’ meeting of the bank, paying EUR0.60 of dividend this year and for scrip of EUR0.50 each. With respect to 2014, I don’t think it’s a time to decide this now. So actually what we will do at due time is consider this under board and submit this further approval at the General Shareholders’ Meeting.

With regard to regulation, there is also several questions about DTAs, Britta Schmidt also from Autonomous, Rohith Chandra from Barclays, Daragh Quinn from Nomura, Carlos Peixoto from BPI, Francisco Riquel from N+1 and Antonio Ramirez from Keefe. The summary of the questions would be, if we expect to benefit from any change in DTA treatment or the Spanish regulation treatment? If we would consider use in DTA state guarantee and under what conditions, what are the changes that we expect to take change here in Spain, to take a place here in Spain, and if we can kind of brief what are the DTAs in the Spain and what is the breakdown in between insolvencies, pensions and risks? Javier Marín Romano: Okay. First thing what we’d like to have in Europe is a level playing field for everything including the consideration of the DTAs as capital. Having said this, today out of the DTAs we have EUR6 billion of DTAs that come out basically from provisions and the pensions, right. We’re not in any negotiations of course, and our only plans today are that over the next five years, our requirement profit in Spain will bite more than 100 basis points into these DTAs due to the generation of profits in the country. So we’re not expecting nothing from these negotiation, and our homework is to generate the profits in Spain in order to bring this DTAs into strong capital.

I don’t know if you want to elaborate. I’ll read now is a question from Andrea Filtri, also related to the first question we made which is, Banco Santander [ph] solution if we are worried about the penetration of asymmetric across countries in national resolution funds, if national resolution funds prevail over a single resolution mechanism for the banking union? I don’t know. You already elaborated a little bit, I don’t know if want to add some comments there? Javier Marín Romano: Well we need to manage what we can manage, right? And actually what we can manage is the situation of the bank compared to our peers. The actual situation is that as I said before, more than 9% of our liabilities are covered by our capital and our hybrids, which I think compares very favorably to other peers in Europe. So this is basically what we are centering our efforts now and in the future.

And little bit in between regulation and financial management which is our next thing. There is a question from Britta Schmidt from Autonomous saying, which are our thoughts about issuing Tier 1 Capital, if we would consider to do something before the stress test, and if we can elaborate a little bit on that possibility of issuance? Javier Marín Romano: The quick answer is no. We’re not going to issue capital. As I mentioned over the presentation, we are very comfortable with the actual capital levels, and we have no plans to issue capital, either at the Group or at the subsidiaries.

As I said going into financial management, there are several questions around risk-weighted assets coming from Francisco Riquel from N+1, David Vaamonde, Álvaro Serrano from Morgan Stanley, Frédéric Teschner from Natixis, Jaime Becerril from JP, Irma Garrido from Ahorro Corporación, Cerezo from Credit Suisse, with regards to the evolution of the risk-weighted assets in the quarter. The question is, if we could explain the evolution. How much comes from delivering concepts of de-leverage and models for business or whatever, if we can also leverage on the models on advanced and non-advanced models? If this is we within the 67 basis points, we already said in advance of model impacts on the capital, as you can imagine, if we can explain in terms of what is happening around the risk-weight assets? Javier Marín Romano: Should we split the origin of the reduction in risk-weighted assets, 50% would come from basically exchange rates, and the evolution of the business being a big part of that the exchange rates and 50% would come from the internal models for operational risk and market risk, in line with what we had already advanced in the previous quarters.

There is a question from David Vaamonde about the AFAs adjustments, if we could explain them how much or why they have stayed in the quarter? Basically here let me remember you that is a reference in between the Forex evolution and the hedges not including goodwill in these discussion basically coming from the Brazilian reis. Remember that we tend to hedge the book within ranges, so it will do have some impacts, some impacts on the capital. And of course it is offset on the risk-weighted asset side which is what Javier was just explaining, of why part of the risk-weighted assets have come down, an important part of them. Questions around capital. You already said that we don’t plan to issue but there are questions coming from Daragh Quinn from Nomura, if we plan to raise capital and from Rohith Chandra from Barclays and Carlos Peixoto from BPI, if we could elaborate on the evolution of the capital ratio on the fully loaded Basel 3 Capital ratio. What is our expectations in evolution of these capital going forward? Javier Marín Romano: Yes. Capital ratio stands today Basel 2 at 11.11%, it should close over 12%. Basel 3 should close out over 9% at the end of the year. With respect to issuing capital, we’re not going to issue capital. With respect to Tier 1 in terms of preferred shares, we’re not planning either to substitute any of our preferred shares. Our first scenario, I will hand out over mike now to Jose Antonio to elaborate a little bit on this, shows that for the next few years we are very comfortable with our Core Tier capital, and we should not begin to issue preference shares in order to gross up our Tier 1. Jose Antonio, you want to elaborate a little bit more on this?

Well as we said in the capital ratio, the Core Capital ratio is what you said exactly. We don’t see any needs. In relation with the additional Tier 1 and lower Tier 2, the new instruments deciding on Basel 2 regulation, well, first thing to say at least in our Tier 1 is not crystal clear yet. We have net in this year year-on-year not next year any Tier 1, but going forward, two years from now, probably we start to issue according to the new regulation that is still not known 100%, while the Tier 2 and additional Tier 1 to cover eventually the 1% on the 1.5% contemplated in the regulation but not now, no. We are not expecting to issue in the next couple of months.

To finalize with capital, there is another question, Mario Lodos coming from Sabadell, asks if we plan any mitigation measures with regards to the potential negative impact on capital like selling on assets or any kind of de-leverage action? In this time we don’t plan anything. Javier Marín Romano: We have no plans.

Liquidity, several question here if we could update our refinancing schedule. The exposure to the ECB, and ECB relieve relievable assets and if you want to link to that, what is the current ALCO portfolios, both – I mean what is the Sovereign exposures and the contribution to NII? Javier Marín Romano: Jose Antonio would you please answer this question?

Yes. Well you started with liquidity, we showed the trends in the presentation. In Spain and Portugal the de-leverage is going on. We are growing faster in deposits, standing loans, so the gap – the long-term deposits is all in all across the group. So the amount of issuance compared with the maturities will be in the region of – maybe in the region of 30%. So probably talk about 30% of new issuance compared with the maturities is something that probably reflect the issuance of the Group going forward, on average is not really depends on geographies, we actively in on securitization in consumer and Santander Consumer Finance business also in Santander Consumer US and you’re going to see some issuance coming from UK and parent company but as I said 30% of roughly speaking of the maturities. In relation with ECB, we have paid in the first quarter DRO [ph], we have like around EUR5 billion, EUR6 billion in Portugal. This is the main funding we have from the ECB. ECB relievable assets, I don’t have the number of the parent company, but it should be in the region of EUR100 billion, yes, so we are not using it but it should be in this region. I don’t have exactly a number here. And ALCO portfolios, you see in the balance sheet, few changes here. So mainly in Spain, we keep portfolio in the region of EUR35 billion, the same line in the previous quarter. We reduce our portfolio – ALCO portfolio in the US which is close 60% of the mortgage-backed securities we had in this portfolio around EUR6 billion, EUR7 billion in the quarter. We reduced also the portfolio in Brazil like EUR4 billion, EUR5 billion. Yes. So all the other portfolios remains the same thing EUR5 billion in Spain, EUR3 billion to EUR4 billion in Poland. We are in the region of EUR10 billion in Brazil, EUR10 billion US compared with EUIR18 billion, EUR19 billion we had before and those are the portfolios. In relation with the sovereign exposure, all the ALCO portfolios, but US basically got – they have these sovereign exposure, so they have sovereign exposure or the local threshold, so that means in Brazil, Brazilian bonds, in Brazilian reis, in Mexican pesos but Sovereign where we have as I said (inaudible) assessing the ALCO portfolio.

With different questions around the same items Frédéric Teschner from Natixis, if we could split, explain the evolution of the quarter one in terms of profit and Forex? I think Javier has already elaborated on the risk-weighted assets, but basically they come from exchange impact in business and the rest is the other half of the variation or models that we already advanced to the market. Carlos Garcia from Societe Generale asks if it is defined a SIFI buffer of 100 basis for Santander? The answer is yes, it is defined as such. As you know it’s renewal, but this is what we have in comparison as also was mentioned in the presentation with our peers that range in between 150 to 250 basis points of buffer. And if we could elaborate on the leverage ratio, how it would look like with other calculations? We have tried to put a IMF criteria which we think given the validity [ph] today of leverage ratios that was the more kind of neutral one to present to the market. Ignacio Cerezo from Credit Suisse asks that the continuous downward trend of the loan to the positive ratio in Spain, if it makes the bank think in a more aggressive way in terms of lending in Spain, if we could increase aggressively the lending in Spain? Javier Marín Romano: What we want to do in Spain is growing clients, right. So if we need to grow our deposits at some point, or we need to grow our credit, it’s basically what our clients are demanding and what we want to do. Well because we are not going to relax our practices and our policies with respect to risk which has been stabled over the time, right. So once the economy is recuperates, and I would have to – and there is more demand for credit, definitely we will grow. We want to grow our market share? Yes we want, but this will not be done at the cost of relaxing our risk and standards.

Going into risks, which is our third group of questions, we have an initial one about restructured and refinanced loans. They come from different analysts from Francisco Riquel from N+1, Ignacio Cerezo from Credit Suisse, Patrick Lee from RBC, Rohith Chandra from Barclays. And they basically ask around the provisions that we have for those restructured and refinanced loans. The change that we have announced of EUR2 billion from sub-standard to NPLs, if we expect additional provisions from this change or going forward and in general terms if we could explain the movement? Javier Marín Romano: Our portfolio of refinanced loans accounts to EUR33 billion. It’s stable. It’s been stable over the year. And we have a general provision of EUR6.6 billion for this portfolio. The change in accordance with the circular of Bank of Spain basically affects EUR3 billion of refinanced mortgage loans to individuals. Out of this, EUR2 billion had been reclassified from sub-standard into non-performing loans, right. Even though, as I mentioned before, clients are actually paying. So we have 93% of this EUR2 billion that are actually paying a non-performing, right. So we would like to consider this more – as a more technical non-performing loans. This portfolio have already a provision of EUR300 million that covers more than enough the needs for this portfolio. Take into account that more than 80% we have warranties of real estate assets for more than 80% of the portfolio. So summing up the provision and the actual value of the real estate warranty would go over 100% of the amount of the loans. Do we expect more provision for this? Well this is probably the worst portfolio we have at the bank, there is still EUR33 billion. We believe that up to-date it has adequate provisions in accordance with what we expect, how this portfolio will behave over the next months and basically that’s it.

Okay. There is a question with regards to Spain. There is a question from Álvaro Serrano from Morgan Stanley saying that even our current coverage ratio 43% if we expect – what do we expect in terms of provision cost of risk or the run rate of provisions, if we could extrapolate Q2 numbers to the rest of the year or if we could elaborate on cost of risk in Spain in general terms? Javier Marín Romano: Yes. You saw what the rolling average for the last year, that has been slightly above 2%. The quarter has been at 1.65 on a stand-alone annualized basis. And we expect this to come down to 150 basis points over the next quarters from this year. Moving on to other years, we look forward over between 2014, 2015 to go into more normalized levels, that should be between 60 and 80 basis points of cost of rate.

That question was also made by Britta Schmidt also from Autonomous, if I got it right. Carlos Peixoto asks for the exposure to renewal energy. I think we already disclosed that we have around EUR1.5 billion, EUR1.6 billion of solar and thermo-solar energy exposure, and we do not expect additional impacts coming from that exposure apart from the cost of (inaudible) that was already mentioned for Spain of around 150 basis points this year. Going into Brazil, there are several questions with regards to NPL and provisions. Álvaro Serrano from Morgan Stanley, Daragh Quinn from Nomura, Ignacio Cerezo from Credit Suisse, and Antonio Ramirez from Keefe, they ask given that the provisions are down Q-on-Q, what are our expectations for 2013 and specifically 2014? Why is still low charges – loan loss charges are high in Brazil, so cost of risk is as represented in the region of 700 basis points. Why is it so high? If we think that it is sustainable, the drop in provisions going forward in Brazil? So it’s about the same. And probably link to this, Antonio Ramirez asks that given the macro perspectives for Brazil, if we have changed our expectations or estimations and if we can update in general terms, credit growth activity and P&L evolution going forward? Javier Marín Romano: Yes. Expectation for non-performing loans in Brazil. Well, our expectations is that I think it will continue to come down over the next quarters. And we believe this should be also – this drop should be sustainable also going into next year. The charges are still high, that we have a calendar effect and we should see cost of grade coming down more steeply over the next quarters. With respect to the macro perspective on our estimates in terms of growth, our estimates from growth for Brazil for this year would be around 2%. Credit, that has begun to accelerate after the stationary a very quiet first quarter. We believe that credit at Santander should be growing at high single-digits, around 9%, 10% by the end of the year. We have the profile of the growth credit is more biased towards mortgage loans for individual clients, SMEs and less pressure in consumption, where we see that basically autos coming down slightly and consumer grades that are slightly – little bit more than flat.

With regards to Mexico, there is kind of a same question coming from Ignacio Cerezo from Credit Suisse, from Rohith Chandra from Barclays and Antonio Ramirez from Keefe and Carlos Garcia from Societe Generale with regards to provisions in Mexico and NPLs are always in the risk arena. What is coming from homebuilders? If we can elaborate on the reason on both the increase of provisions in NPLs and the breakdown? Why is it increasing and outlook going forward in the following quarters? Javier Marín Romano: The increase is – yes sir, this is basically due to the consumer credit and to homebuilders being the big part of that basically consumer credit due to the deceleration of the economy over the first half of this year. We expect a pickup of the economy especially over the last quarter of this year and going through into 2014. So we expect (inaudible) launched to countdown and cost of grade to remain stable at least for the rest of 2013.

Poland, Frédéric Teschner from Natixis asks to what extent results are sustainable, specifically linking them to the NPL rise in coverage decrease in Poland and provisions in P&L? Javier Marín Romano: We have few things in Poland. First, the economy is growing and we’re growing with economy, which is good. Second is, we are reducing the cost of our deposit base, especially the deposits gaining from Kredyt Bank, which definitely will help, and compensate the reduction in interest rates in the country. At the same point you have the integration of Kredyt Bank and Zachodni, with the cost synergies that we are expected and that are very much in line or even above, not only in terms of amount but also in terms of calendar of what we are – of we previously anticipated. In terms of number for launch, we have one-off related to a company, a homebuilder, but there is one-off. So we don’t expect this to move through into the next quarters.

Okay. To end the risk part, couple of questions, one on Spain from Sergio Gamez, Merrill Lynch. If we could explain the charge in the corporate center of around EUR200 million due to the Santander Banesto merger, if we could elaborate a little bit there? The second one would be Carlos Garcia from Societe Generale asking if we expect from the AQR that you already elaborated earlier there, if we expect any change in NPLs, provisions or in general terms restructured loan, classifications and fast additional cost of risk from the Asset Quality Review? Javier Marín Romano: Yes. So the first one with respect to the charge that we have at the corporate center, it’s a EUR188 million. It’s basically due to the integration of Banesto and Santander. It relates to a standardized launch where we have clients that have different consideration in Santander and in Banesto. What we have done is basically take the most conservative approach being it Santander or the Banesto approach. So this has resulted in an extraordinary charge of EUR188 million that is extraordinary, it is one-off and this will not continue over the next quarters. We don’t expect – with respect to the Asset Quality Review, we don’t expect any further provisioning from the Asset Quality Review. As we believe that within the traditional conservative policy of Santander, we have a quite an early recognition of problems when we think they arise, and thus a good provisioning of the expected risks.

Moving to units, we started with Spain. We have different questions around net interest income coming from Álvaro Serrano from Morgan Stanley, Jaime Becerril from JP, Mario Lodos from Sabadell Bolsa basically asking what is our expectation for the evolution of the Spanish NII? We have given a guidance that most of the deposit cost would benefit in the second semester of this year if we maintain that idea. If we would expect similar increases of NII Q-on-Q going into Q3 and Q4? If we are in the bottom of the NII in the Spain or how far are we from there? And if the limitation of remuneration of deposits, I understand this comes from the media comments on Bank of Spain, if the new pricing of the production of deposits, if it is going to improve and how it can impact on the NII? So as you can see all around deposits and NII? Javier Marín Romano: Very good. Definitely, we expect over the next – for the rest of the year a good increase in the cost of our deposits, right. Actually the cost of deposits is going down. The cost of the stock is going down monthly between five and seven basis points, right. So that is basically what we expect for the rest of the year. We believe that net interest margin – the net interest income has bottomed up in Spain and we expect this to be growing into this year and especially into next year. We have already the reduction in the Euribor – in year Euribor for the mortgages have already been repriced into our mortgages, and this impact will be more than offset by the reduction in the cost of our deposits, especially taking into account that our loan to deposit ratio stands today at 85%. With respect to the client margin for the asset side, we expect this to remain stable.

Couple of questions on the Spain remaining. One is with regards to the integration, between Banesto Santander and cost, that you already elaborated a little bit but Irma Garrido from Ahorro Corporación, Ignacio Cerezo from Credit Suisse and Javier Ruiz from Interim [ph]. They all ask about given the evolution of the employees in Spain that has gone down 2% in three months and that branches are more or less stable, what are the expected evolution with regards to this integration that we expect? If the charges that we have done in the quarter, if they are all that was expected from that integration, we announced around EUR400 million so we had not done all of it but if you can elaborate how that is going? And if we can expect additional charges with regards to that integration or we are on both calendar in what we announced? That would be the first pending question. The second one from Daragh Quinn from Nomura is, if how long do we expect Spain to maintain or to have (inaudible) going forward? So if we can elaborate on the P&L, not only on the upper part, in the full P&L for full Spain, I guess including all the units? Javier Marín Romano: Yes. Well firstly with respect to Banesto and the integration with Santander. The charge that we had, a sovereign charge of EUR270 million is not only for the integration in Spain, but also for the integration in Poland even though of course the bulk of it is from the Spanish integration. The cost of integration as we advanced were for EUR100 million that is exactly what we expect. The integration is absolutely in plans, not only in terms of savings, in terms of synergies but also in terms of calendar. The other question I think was about?

The second question is about… Javier Marín Romano: Sorry, the P&L for Spain, yes, P&L for Spain. Now first thing to mention is that our priority in Spain is to continue to grow in line of clients, both in individuals especially in the more affluence where we have a very strong market share but especially also in SMEs. So this should reflect first thing, at the level of or the financial margin with the repricing of the mortgages that we already set, repricing of grade and moving down the cost of deposits, financial margins should continue to improve. And we will see this much more strongly into next year. With respect to commissions, I would say that we are having increased operations at the bank. So we are growing again. We are market leaders in asset management with a market share close to 17%. You are seeing this impacting already this year on more into next year at the commission level and also in insurance where we’re growing very well especially in non-credit related insurance. With respect to costs, we will see next year, a more dramatic impact of the cost synergies of the integration with Banesto. With respect to provisions as we said before, we will be closing this year with the cost of credit to 150 basis points that should also continue to be lower through next year. So I would be quite fairly optimistic with respect to our expectations, with respect to the P&L of our Group in Spain.

Moving to UK, there is a question from Jaime Becerril from JP, if we expect additional PPI insurance claims or charges, and where we there? We already said that we made these provisions, if you remember last several quarters ago last year and we think we are covered there. We don’t expect additional heats from that concept. And Rohith Chandra also asks from Barclays, why other income negative is up in certain amount, basically that’s a generic provision we have done in the P&L. There is nothing special there. Ronit Ghose from Citi asks about the upper part of the UK P&L. How much do we expect in terms of NII and NIM to improve from current levels, and if we could elaborate a little bit on both revenues and specifically NII? Javier Marín Romano: Very good. Again the work over the last quarters in the UK has been great in terms of creating franchise, and it’s been reflected also of course at the P&L level. So we’ve grown almost 2 million clients, at the 1-2-3 offer. Not only in current accounts, but also in credit cards and so on. This definitely has cut to lower the cost of our deposits than its part of the impact you see at the net interest income and net interest margin. At the same time, the margins and grades are remaining fairly stable and we are managing quite well to manage the margins for the mortgage book. So basically I see this trend moving into the next part of the year which together with the strengthening of the economy in the UK, I think definitely will have.

Okay. And I would make it for UK. Now going to Brazil. You already elaborated on Brazil, so I’m going to try to add the new questions because there is Daragh Quinn from Nomura, Carlos Peixoto from BPI, Francisco Riquel from N+1 and Benjie Creelan from Macquarie. They all ask about macro that has already being elaborated, probably what could be new is given the evolution of both inflation and interest rates specifically on the SELIC. If we could elaborate on the impact of those movements? If we think that for the affordability ratios – the improvements for affordability ratios for consumer loans could affect positively or negatively that evolution so that on the side of volumes. And if we see a floor to the repricing of the asset in Brazil? The rest are macro, volume and growth, but I think you already leveraged it. Javier Marín Romano: What was the last one?

The last one was the repricing of the asset side in the floor of potential evolution in terms of that repricing on the loan side. Javier Marín Romano: Yes. Well first thing, with respect to inflation. Inflation stands today at 200 basis point over the level of the established by the BaFin. I could see especially the increase in the interest rates does not translate immediately into our credit portfolio, and as you know you have the compulsory deposits in Brazil. So it has an initial negative impact on the profitability of our portfolio, but we’ll come up over the next month when the portfolio is repriced, it will have a much more positive impact over the profitability of this portfolio. Affordability of grades, I already said that you have a very stationary quite first quarter. It’s been accelerating a credit growth of the second quarter and we see this accelerate even more for the next six months in order to conclude the year with growth at close to 10%. And the question of repricing of assets, sorry?

Basically the asset managing compression if you think... Javier Marín Romano: Okay. That was already answered, right. So first, initially an impact on the – until the portfolio upgrade is repriced that will take – that would be very short-term repriced portfolio. So it will happen over the next months.

Okay. Next unit, which is the run-off real estate unit in the Spain. There is one question coming from (inaudible). If we could give a – share with some data regarding these unit activity in terms of sales, I guess how it is evolving, if it’s above or below expectations? How much do we expect to in terms of activity and if we could also add some flavor to the P&L in terms of potential evolution going forward from the current losses in which we are now? Javier Marín Romano: Okay. So just a few figures on this. We have sold 8,300 units over the first six months. We have reduced the level of credit in almost EUR1.5 billion. In terms of the amount of real estate repossessed that you have sold is account for EUR500 million of what you see you know that basically the new foreclosed compared to sales are being flat because of basically the same amount. We’ve made a loss of EUR337 million over in first six months and we expect we’re basically in plan. We think this should accelerate a little bit over the second part of the year. The average discount of sales has been around 45%, slightly below what we – last year. So we’re quite in plans with respect to this unit.

Last unit is, we go to Mexico. There are a couple of questions there, Carlos Peixoto from BPI and Daragh Quinn from Nomura. First is if we expect any impact from the banking reform from the structural reforms, and if we think it would impact the outlook of the unit and which is that outlook, which is basically the question from Daragh Quinn the second one, what is the outlook for loan growth for year-end and for 2014 in terms of Santander Mexico? Javier Marín Romano: We think these structural reforms are going to be great for the country. I think we’ll have probably a structural 1 to 1.5 percentage more of growth in GDP. In terms of the loan portfolio, we expect this year to be growing in double-digits for the units around 14%.

Well I guess that’s all. They say to me that we don’t have any questions on the line. So thank you again for your presence. Any questions that have not been addressed, please do direct them to the investor relations department to cover them. Thank you.