Javier Marín Romano – CEO Jose Antonio Alvarez – CFO Javier Marín Romano: Good morning, ladies and gentlemen. Thank you very much for joining us for this Third Quarter Results Presentation for Group Santander. And Jose Antonio Alvarez, Chief Financial Officer of the Group is joining me for this presentation. I will basically go through the main figures for what has been the third quarter. Then Jose Antonio will comment on the results for each geography and each area. I will come back with a summary of conclusions and for the priorities for the group for the next quarters. In an environment that shows signs of improvement, but which remains complex, the Group focused on two aspects. On the one hand and in line with previous quarters, maintain a strong balance sheet in terms of liquidity and capital and continue to reinforce the capacity to generate results. On the other hand, we are laying the foundations for our more efficient management in allocating capital and investments, generating more revenues by taking advantage of the group economies of scale, thus let’s say integrating multi-group, better segmentation with a great focus on customers. Some key figures and messages for this quarter. First thing, with respect to volumes that continue to reflect the different macroeconomic situation of the countries where we operate. We see our larger growth in deposits, a larger rise in deposits than in loans, that they shrink by 2% because of the de-leveraging of certain of the economies where we operate. As a result, we maintain a very comfortable liquidity ratio, the loan to the positive ratio stands at 108%, but this – and especially backed by Spain, where the loan-to-deposit ratio sits at 85%. Just let me remind you that we have grown in more than 230 billion in…

So, good morning. As Javier mentioned, I’m going to go through the different business areas, making the highlights of each of them. First, to start the chart that shows basically that the profit is well diversified by countries. And basically is virtually unchanged in the quarter compared with the previous quarter, 55% of the profits come from what is so called emerging markets, being the main one Brazil as usual. And matured markets U.K. generated 15% of the profits and the U.S. 11%, Spain at this point of the cycle, only 7%. Let’s start with Spain, in Spain, on the activity side we continued to see a significant de-leveraging. We are gaining market share both in long term deposits, but even though the volumes in the loan book are falling and this is playing in some sense the trends in revenues. In the revenues in the quarter, we have some major effects, the de-leveraging that is going on as I mentioned. The second effect that is very well known for you is the re-pricing of mortgages that is coming to an end. The bulk has been done already. There is some trade-off between net interest income and trading gains in wholesale business that as you know, the Spanish wholesale business is reported here in Spain. And still the improvement coming from the cost of deposits is not yet at full speed. Still the next two quarter, we’ll see significant drop in deposit cost that basically we are renewing the deposits a 150 basis points the time deposits, lower than the bank book. Because are relatively flat. Still too early to see the effects of integration that Javier mentioned before. And lastly, finally, still have a very high effort on provisions as you can see in the numbers. Well, in the…

Good morning. As Javier said, we are open now the session for Q&A for all the question that we have received through the internet. Of course at the end, if there are questions through the phone we will try to address them if time is available. We would organize questions as always by themes, starting with strategical relation perspectives for the Group and for the sector. The first question would be about just those announcements from the ECB, on the AQR and the stress test. There are several questions here posted by Britta Schmidt, Autonomous; Axel Finsterbusch from JP; Alexander Pelteshki from ING and Daragh Quinn from Nomura. Basically the questions would be what is our reaction and opinion on this announcement if it would change or not the strategies of the Group. If we think we can meet the 8% buffer that was announced by January 1, 2014? And if we expect changes on our books, on the sovereign book, measures etc,. So in general terms, comments to what was announced yesterday and impacts both on us and on the sector? Javier Marín Romano: Our first reaction to this is positive, right. First thing we believe you know it’s a good exercise of transparency which is key in order to recover and trust on the financial sector. We will see for the first time a more level playing field so, applying homogenous criteria to all the banks, and basically with respect to non-performing loans, the refinanced loans and criteria that are being applied are basically the same criteria that are being applied in Spain by Bank of Spain, so we feel very comfortable with that. It will cover a spectrum, not only balance but also off-balance sheet assets, was all kinds of – with all kind of risks, and…

Second group of questions, apply to dividends and dividend policy. Rohith Chandra from Barclays, Stanislas Wawrinka from BNP; Victor Rodriguez from (inaudible); and Britta Schmidt from Autonomous, all circle around our dividend policy with regards to 2014. Basically, we think that the dividend payout rules from Bank of Spain will be maintained on the 25% payout ratio. What is our idea with regards to remuneration of shareholders if we think we can sustain the dividend that we have paid or what are our thoughts around this? Javier Marín Romano: The dividend policy of the bank sits perfectly within the recommendations of Bank of Spain. So, we don’t expect to do any changes. We have already announced the dividend for this year that it will be 60 cents in [FOREX] (ph) groups. For the next year, as you know, every year we bring to the General Shareholder’s Meeting what should be the policy for 2014, so this is a decision that is up to the General Shareholder’s Meeting. I can only speak for 2013, where basically we’ll keep the dividend on the same way we already -- for the amount underway we announced that sits perfectly within the new policy set out by Bank of Spain.

There are many questions coming from Rohith Chandra from Barclays and Carlos Peixoto from BPI with regards to our interest in M&A basically in Spain. In fact, they specifically ask about CatalunyaCaixa and NovaCaixaGalicia, if we are interested or what are our ideas with regards to making inorganic movements in Spain? Javier Marín Romano: Our first task in Spain is to integrate Banesto and Santander. We’re on the process, we’re trying to accelerate it as quick as possible. It is very important you know that we don’t lose foot during this process from our commercial side. We are growing well in the profits, we have [bombarded] (ph) more than 90,000 loyal clients into the bank over this nine months, and that is very important, and I think we still have a lot of room to do things better with our actual footprint in Spain. However, of course, definitely we will take a look to both NovaCaixaGalicia and CaixaCatalunya. We always, I think it’s our duty to analyze any opportunities that might arise in the markets where we operate. And of course as you all know, the group has very rigid returns, expectancies on all the investments that we look at, so they need to make them, right. So we look at them as we are already looking at NovaCaixaGalicia, and we will see balancing the risk as the opportunities what should be the decision of the bank.

With regards to potential IPOs, there are a couple of questions coming from Carlos Peixoto from BPI, Mario Lodos from Sabadell, Rohith Chandra from Barclays. Basically fortunes from both U.K. and U.S. From U.K. given the recent relation from the (inaudible), we are thinking of the IPO in ’15 or ’16, 2015, 2016 in U.K. if we can – if a clarification here, if we could be thinking offering a private placement like the consumer finance, USA. Then what are our ideas with the IPO for SCUSA of Santander Consumer Finance USA? Javier Marín Romano: Well, as you know, the group policies they have are affiliates independent in capital, independent in financing, and quoted in the markets where they operate, so this will come.

When? Javier Marín Romano: When, at the appropriate moment. So now we are hands free in the U.S. after the self-registration for the IPOs, so now we can do it whenever we want. In the U.K., we need to wait for the appropriate moments and the appropriate moment means both the markets and the internal situation of our franchise. I don’t think this will happen definitely next year, so later next year we will see.

With regards to regulation, there are certain questions on DTAs, Britta Schmidt from Autonomous, Rohith Chandra from Barclays, and Patrick Lee from RBC. Basically what do we expect from the new potential regulation on DTAs if we include them on our fully loaded calculations, if there is any update on availability of DTAs, what could be the conversion in Spain, if we can elaborate under different types of DTAs and if they’re fully loaded 9% includes them or not? Javier Marín Romano: Very good. With respect to the DTAs, our attitude with respect to this is that we should leverage only on our capabilities that this – the potential to grow the business and to generate organic capital. We cannot wait for any kind of negotiations that we are not part of. Of course, we would love to have level playing field in Europe. So, the similar situation that we have in Italy, in Germany, or in France, we have it in Spain, but we’re not counting on that for anything within our numbers. So if it comes it will come as a bonus. Our objective is to generate positive results in Spain in order to bite into those DTAs.

Okay, linked with DTAs and going into capital, there are several questions both with regards to our level of capital in the fully loaded – you have elaborated here, but if you want to address something additional, Rohith Chandra from Barclays, Stanislas Wawrinka from BNP, Ignacio Cerezo from Credit Suisse, Benjie Creelan from Macquarie, and Carlo Digrandi from HSBC. They basically ask about if we see more capital optimization exercises like in Brazil recently that’s on one side. The other side is if we are thinking of raising capital and what are the levels of capital that we feel comfortable with, as I said, do you want to elaborate here a little bit. And then the first kind of – group of questions would be on the fully loaded. And they say if can add data there, our position, what is the fully loaded and what is still to come, elaborating around the 9% that we had said that we think will be above that firstly? Javier Marín Romano: With respect to optimization exercises, definitely some with operation in Brazil, which definitely will increase (inaudible) end returns for all the shareholders which I think is good. We have an active policy of reviewing the capital as I mentioned before not only by geographies but also by segments. So you should not exclude that we also – that we actively review and take action when we see some opportunities for optimization. With respect to raising capital, the answer is no. We are not going to raise capital. We are very comfortable with the actual levels of capital, and with our capacity to organically generate capital, so we’re not planning any capital raising even though the price of tangible book is high and whatever, but we are not planning anything because you do this when you need it, and we don’t need it, and we’re already comfortable with our actual levels. And with respect to the fully loaded, we already said that Santander will always stand the above 9% on a fully loaded basis, and we are in the – we’re on track to be there.

Finalizing the relation we have specific questions from Antonio Ramirez from KBW. How does the NPL and re-finance restructured loans definition by EDA compare with those that we already applying with regards to the AQR exercise? Let me remember here that basically that exercise is converging to what we could call a Spanish criteria. They include above 90 days, they include subjective NPLs on the definition of NPLs. And on restructured, they comply or they move towards that definition for those that is highly conservative following the Spanish standard, so I would say basically we are already there. Moving into financial – in the financial arena, and then to capital, there is a question, sort of questions around risk weighted assets, Britta Schmidt from Autonomous, Andrea Filtri from Mediobanca, Ignacio Cerezo from Credit Suisse, and Ignacio Ulargui from BBVA. They ask for explanation from the drop of risk weighted assets. And the total amount, specifically in Spain, if we had reduced risk weighted assets on SMEs and if there is additional potential optimization in the background? Javier Marín Romano: Well, as we said during the presentation, the reduction in risk weighted assets came firstly because of the reduction of the stock upgrades. And secondly and most because of the new definition of an SME that made it (inaudible) with what we have in Europe. And half of the generation of capital came from organic generation from the P&L, and the other half came from the other – from the other effects.

You probably also have to add the products, the impact of it is like about one on that movements. About insurance-linked to the relation and to our ideas of what we could issue, Britta Schmidt from Autonomous and Axel Finsterbusch from JP ask about what are our ideas of issuing additional tier-1 with the requirements about CR differ. What are our plans there if we are going to start issuing these types of securities or if we see foresee additional tier-1 to be issued? Javier Marín Romano: Basically, our idea is to replace our additional tier-1 and our additional tier-2 that will go under the (inaudible). So, we have basically €18 billion that will be replaced over the next 10 years, both at a corporate level and at the affiliate level. I will ask Jose Antonio, if you want to elaborate more on this.

Basically we will issue both from the paradigm from the affiliates. In some affiliate, you must assume the parent company level maybe next year when we start to replace, as Javier said, some issuance that mature we can call or lose [computability] in the coming years. With regards to (inaudible) and ALCO portfolios, there are also several questions from Britta Schmidt from Autonomous, Mario Ropero from Fidentiis; Antonio Ramirez from KV, basically they all ask about the ALCO structure, if we can speak about what are our exposure to [covering] (ph) that, what is the reason of the drop on debt securities in the balance sheet, if we can speak about duration and volumes and NII contribution? Javier Marín Romano: The policy in the ALCO portfolio is very – the main task has been to reduce assignments during the presentation to reduce the reduce [inflation] in the balance sheet. This was particularly strong in Brazil, US, and (inaudible) Spain. So, duration in the balance sheet is generally shorter than in the previous quarters, so we started these – the instruments we used to change, to change the (inaudible) of the balance sheet normally is holding that, the majority is holding that or almost holding that. As a result of this, we reduced the holdings in Brazil, in U.S. you have seen U.S. in one year has been like 30% and increasing significantly, and the Spain we reduced 15% or something like that. The (inaudible) is now really short in balance sheets it is negative, yeah, so because it will run significant amount of demand deposits, current accounts will pay interest, and in general I would push it in all the balance sheets and all the ones I mentioned is more to (inaudible) rates. Our position is to high rates (inaudible). The holdings of sovereign debt is around 60 billion, in Spain around 30 billion, Brazil 7 billion, I am speaking in euros, that’s my knowledge, Poland 4 billion , U.S. 3 billion, Mexico 2 billion, and so those are the main holdings. Overall, 58 billion.

On the liquidity side, there are a couple of questions from Carlos Peixoto from BPI and Carlos Barfia from the Zee with regards to our financing exposure with ECV mentioning [de litros] (ph) the LTROs if we – what are we using, what do we expect to use, if we expect (inaudible) or not and that would be basically two of the main issues around the liquidity? Javier Marín Romano: Basically, when we (inaudible) in Spain, most of that is already paid -- has already been paid back, the first quarter of this year. We have still an exposure of 10 billion, 7 billion in our bank in Portugal that should come down to 5 billion soon, and the rest is to (inaudible) financing in order to finance their business. In respect to our new (inaudible), you know, for that basically we don’t need it, so you know, it should be good for some operators in the industry you live, but to avoid paying risks for us basically as we are in a very comfortable position in terms of liquidity.

We have also questions on our announcement of cost synergies that we made around one month ago, questions coming from Carlos Garcia from Soc Gen, Irma Garrido from Ahorro Corporation, and Rohith Chandra from Barclays. They are basically asking if we could allow the rate on the 1 billion additional cost savings that we announced? If we plan to have additional charges, divest operation chances whether they are included or not, if that is the – the 1.5 billion is the total [debt] (ph) that we will see by 2016 in the rate (inaudible) so basically. Javier Marín Romano: Out of the one billion, the split will be basically between around 45% in Spain, around 40% in Brazil, and the rest will be a split between the different countries, will they have instructions charges, definitely there will. In order to restructure, we will need to apply some costs, right. We are in, we will come with this, with this figure, we are already working on each exact plan in each country in order to figure exactly what the restructuring costs are going to be, so the next quarter, we will come back in order to -- with much more detailed information in terms of what we can expect in terms of restructuring charges. With respect 2016, yes, you can expect 1.5 of less costs by 2016.

Okay, to end up on this area we have a question with regards to the double U.S. rules, what do we expect, if we expect to affect or moving to Europe and what are our thoughts on those rules? Javier Marín Romano: Basically, we are not -- as you know, the new rules apply basically to foreign banks that have operations in US. We have already complied with this, we have an affiliate , due to our strategy and policy of having affiliates that are independent, being capital independent in financial work on the affiliate base and not on a branch base, we already comply with it, our new rules, so, you know, we are already okay.

Okay, moving to the next area which is risk, the risk arena, we have a question around the coverage ratio, for the group made by (inaudible) from Mediobanco asking why do we let the coverage ratio go down a couple of percentage points that are referred there and what is the relation we expect from there? Javier Marín Romano: Well, as you know, the coverage has always been our objective for us, it’s a consequence of the evolution of the nonperforming loan ratio and the need of provisioning in order to cover the expected of losses of this. So the portfolio of course has different – have a different collaterals, we have, as we said before more than half of our book is collateralized, so, you know, the end coverage is the result of the nonperforming loans minus the collaterals that we have and with the expected loss that we have for each portfolio in each country. So, you know, it’s not a question, for us, it’s a fact, it’s not our objective.

With regards to criteria and specific data, there are a couple of questions. One from Santiago Lopez from Exane. If a company that has been restructured (inaudible) financial more than once, if we are including those on the restructuring in the finance levels, the answer is yes. With regards to Spain, there are several questions, as you can imagine, one first is the exposure to renew our energy. We already gave those (inaudible) from Carlos Peixoto from BPI. Javier Marín Romano: We already gave that exposure in the previous quarter, I think it is around 1.5, 1.6 billion in the specific renewal exposure that could be affected, and it’s already a provision with no additional expected problems there.

Speaking on Spain from Rohith Chandra from Barclays, Ignacio Cerezo from Credit Suisse, there are several questions of how do we see the quality of Berlin, what is our provision charge expectations for 2014 if we keep on seeing a gradual reduction in both loan charges and provisional charges in the P&L. I wanted to speak with respect to improvement, and if we can kind of update on the refinance, well refinance is another area basically [quality] (ph) in Spain, cost of risk, how do we see that evolving? Javier Marín Romano: With respect to quality, we also see, we are going to be seeing some improvement in quality from (inaudible) individuals, both consumer credit and mortgages are performing better in terms of new non-performing loans, and reassurance are performing better, we still see a high levels of entrants of new nonperforming loans in SMEs at the high level and at a sustained level, so we don’t see still an improvement there. With respect to cost of credit, we are ready to see an improvement for next year, we already saw an improvement from second quarter coming to this quarter, and we will see this going farther down from next year.

Patrick [Lee] from RBC was also asking this point to us if there any a specific run rate or anything that we should start from the 6.4% of NPL ratio in Spain and at least as far as there is nothing really specific to underline. On the refinance on the (inaudible) side, we have several questions. Antonio Ramirez from KBW, Ignacio Cerezo from Credit Suisse, Andrea Filtri from Mediobanca, they ask if we – what do we expect in terms of additional or potential new reclassifications on this structured and refinance loans by Banc of Spain potential, additional definitions, if we feel originally provisioned on that area, and if we can give basically an update on how we adhere, what are our coverages, etcetera? Javier Marín Romano: Okay, in terms of that do we expect any additional reclassification, no, the answer basically is no, right. With this portfolio, it is adequately provisioned with respect to the expected loss for this portfolio. We have roughly around 42% of this portfolio that is already a nonperforming, and around 25% to 30% of this portfolio that is substandard, thank you. You know, the rest is basically performing and the portfolio is provisioned in accordance with how we expect that this portfolio should perform in the next year.

There are two questions from Andrea Filtri from Mediobanca and (inaudible) asking when would be the NPL raise according the VA, if we expect non NPLs through the structured loans, and there will be – if we would include that in the business additional cost (inaudible) an danswer has been stated is yes, that is in the (inaudible) should include a -- including this type of movement in potential impacts that we have from this type of launch. Javier Marín Romano: (Inaudible) specifically mentioning the risk side, Mexico and Brazil, and on the first one several questions from Daragh Quinn from Nomura and Patrick Lee from RBC, Rohith Chandra from Barclays, Álvaro Serrano from Morgan Stanley, Mario Lodos from Sabadell Bolsa with regards to the jump in provisions in Mexico if we can update, we could update on the home building exposure, coverage reinsurance of the (inaudible), how do we see the trends in asset quality in Mexico and do we expect additional hits from there?

Yeah, in respect to the home builders in Mexico, our portfolio sits at 300 million euros. The provision that will be charged is made at 42%, and this is will be -- what we expect could be the potential loss of this exposure. As you know, this provision was made against capital at local level, at local accounting, it was made against results at the group level. And in terms of the general portfolio, we’ve seen slight deterioration because of the sluggish growth that we have seen in Mexico over the last quarter, but we don’t see a big trend of deterioration. We hope that this should come back when the economy begins to grow at a more normalized level. On going to the second division in Brazil mentioned the question is from Ignacio Cerezo from Credit Suisse, Mario Ropero from Fidentiis and Rohith Chandra from Barclays well stating that we have seen the decrease of [both] frontiers and provision charges in the P&L, how do we see that evolution, if we can explain how sustainable it is and whereas in the bottom of those charges where we could additional good news from that part of our business? Javier Marín Romano: Our view is that this year reduction in [normal] and provisioning should continue over the last, over the next quarter. If you compare our bank to our peers in Brazil, you see that the peak of our NPLs took place nine months later than it did for them. So we are nine months behind, right. And in addition to this, of course it’s hurting the financial margin as Antonio explained, we are growing in certain areas of lower margin and lower risks, and this should be of course reflected on the behavior of our portfolio. In addition, earlier arrears especially over 60 has shown good decreases, so we believe that this should be a trend to be seen over the next quarter.

Going to specifically units, we’ll start with Spain. There is probably the same question made in three different ways or linked in between them, let me try to summarize them, the first would be the general thoughts about business in Spain, but we expect positive surprises in 14 if you could elaborate there with respect to return to profits in Spain early or not, that would be the area one, and then specifically there are two areas volumes and NII that we probably want to address jointly. On the volume side, questions around leveraging in Spain, loans going down, if we see them still going down or not, how much additional leverage we could see given the strong activity in new launch in companies in Spain, if we can [spend] (ph) increase all along the loan book in volumes – if they are affected by the integration of Banisto (inaudible) The first part of this question is the (inaudible) margin that is the reason for the decline for that margin in the Q, if we can give some kind of guidance, if we expect it to be positive, et cetera. Those questions from Carlo Digrandi from HSBC; Daragh Quinn from Nomura, Ignacio Cerezo from Credit Suisse, Mario Ropero from Fidentiis, Frederic Teschner from Natixis; Alvaro Serrano from Morgan Stanley, Rohith Chandra from Barclays, and Francisco Riquel from (inaudible) and Ignacio Ulargui from BBVA. I think I included all of them. Javier Marín Romano: The first question volumes [deliberating], as you know, the economy has gone through a very strong deleveraging besides upgrade for a households and companies has gone down to almost 30%, which is quite a lot. We believe that this is, we should be close to the bottom, our expectations from next year is that our loan books…

You addressed, there is another group of questions with regards to specifically deposits and pricing and cost of the profits, and it’s price. The questions are, if we can show what are the cost of deposits that are mentioned, how they are evolving, how is the new production, , why the spread has gone down in the quarter, that weaker (inaudible) volume of deposits shrinking, if you can explain that movement that you mentioned in your presentation, but I don’t know if you want to elaborate a little bit. These questions come from Benjie Creelan from Macquarie, Patrick Lee from RBC, and Rohith Chandra from Barclays. And there is an additional one from John Blanch from RCM, from Raiffeisen Capital Management, speaking about the general situation in markets, first with regards to specifically on the deposits of Sovereign banks that given that they gained a lot of market share before the crisis, if we are not (inaudible) that Spain could go through difficult times given that now is the other way around. You can elaborate a little bit there. Javier Marín Romano: Okay. I know what I said in presentation, basically on deposit costs and from book – back book dynamics is very good. So, in fact the time deposits we are seeing reductions in the cost of a 150 basis points and when we compare the back book time deposits, we do front book time deposits. What remains to be done some as Javier mentioned we started the year on 180 basis points consolidated deposits, we got another 125. But with respect to the – what needed to be done is around 30 billion deposits that are going to be price timed deposits in the next six months or something like that that was (inaudible) – from this reduction of 150 basis points or speaking, and this is the process of repricing down the deposits. On volumes, we already eloborated. The volumes are coming in good sight particularly in the last quarter was (inaudible) concerning deposits because the focus on deposits is as we mentioned is more of the cost than the volume, given the liquidity position of the bank.

Then with Spain, we have a question from Mario Lodos from Sabadell Bolsa. When do we think the mortgage re-pricing will end? Remember, that this is linked to the [LIBOR], the LIBOR going down in 2012 until around October, November, which is operational, we should see the end of that re-pricing process with a little delay in one month or a month and a half? And the last question on Spain would be on Ramos real estate portfolio, made by Benjie Creelan from Macquarie. He asks about the proportion of land within our portfolio that is growing, 57% now with 62% coverage ratio. You would feel that that is enough and hard to rethink that (inaudible) in the future? Javier Marín Romano: We are expecting the first one, reputation of mortgages. The bulk of that has already occurred. We still have a tail, a small part over the next quarter, and by year end, it should be finished. With respect to the land, the question about the land, of course the rate of the land on our real-estate portfolio increases because we’re selling the flats. So, definitely it increases. What we are doing is today we have more than – we’re promoting more than 100 of these plots. And basically in big cities, we see there is demand for this. We only begin the promotion when we have more than 35% of the flats showed. So, we see a very good trend here that will (inaudible) to recover out of the price, out of the accounting figure for these plots more than we have – than we have provisions. So, we expect some good news over there.

Going to what I see, two big groups of questions, one is around business in volumes, second one around costs. The first one – the question is like how do we see generally speaking volume growing in the country, still the difference in between public banks and private banks. If we think that the government will keep enforcing or increasing through public banks volume growth. How do you see our growth growing on this year and next year, and linked to that margins and spreads, how do we see the NII evolving in Brazil? How do we see the spreads if we think (inaudible) or that they will continue, so basically volume at the micro sector at the sector level, volume for us and NII evolution that’s from on the business? And then on the cost, Mario Lodos specifically asks on the negotiations with unions, if you can give an update of the quest situation and the impacts in terms of cost evolution going forward? Javier Marín Romano: Okay. In respect to volumes, we expected that the last last quarter that we expected our bank to be growing the credit portfolio close to 10%. The credit is going up 7% by now, so we expect to be close to that figure. It is true that the growth for public banks has been huge compared to the private banks. We see the public banks already slowing down the pace of growth in credit. And probably, next year we will see again for the whole industry double digit growth, low double digit growth in terms of credit. With respect to net interest income, with respect to our bank, the most important thing is that our net interest income minus provisions, how this figure evolves, right. So our view is that this net interest income minus provisions minus the cost of credit should continue to behave better. We will still see some margin compression in the country basically because of competition, because of regulation, and because as we did this quarter, we are focusing more in growing it in segments, enough (inaudible) that have a lower cost of credit and definitely a lower margin. But the net -- but the margin net of provisions should begin to improve. Costs, the collective agreement has come up with an 8.24% increase in salaries. That is why it is so important to implement all the measures we have in plan in order to bring Brazil to our cost to business that this is similar to other countries where we operate like Mexico.

Speaking about Mexico, we have a question from Benjie mentioned a question from Brazil, Benjie Creelan from Macquarie, Mario Ropero from Fidentiis, Daragh Quinn from Nomura, and Alvaro Serrano from Morgan Stanley, and also Carlo Digrandi from HSBC is asking about Mexico, about NII if we still need (inaudible) in inflexion point, if we can elaborate on the drivers for next year in Mexico, specifically speaking of the [rapid] part of the P&L? Javier Marín Romano: Well, we’ve seen a reduction in Mexico that definitely has hurt our net interest income. The trends we see basically, we see interests where they are picking up slightly. Volumes are working well. We think that they should accelerate both in grade and deposits over the next quarter with the economy getting more speeding up.

There are two questions on the Anglo-Saxon markets. On UK, Alex Potter from Mirabaud Securities, he asks about U.K. results mix, NII was good and positive with re-pricing comments. If we can talk about Q3 fees, I mean, evolution of fees in loan losses, so the kind of part of the revenue side and specifically in the quality side on U.K., that would be U.K. In U.S., there is a question by Mario Lodos from Sabadell asking about our guidance given by the chairman. Our CEO spoke about 2 billion net profit dollars for 2016. How do we plan to meet that target? Are we going to see the recurring interest levels -- are we considering any inorganic growth setting? Javier Marín Romano: Okay. With respect to the U.K., commissions were hit in the quarter basically because of the lower volume in terms of funds, distributed funds through the network, and a less intense activity on global banking markets that definitely at the end brought down our commissions in the quarter. With respect to provisions, we see the U.K. at a very good level, as you saw non-performing loans is still 3 basis points below what we had the previous quarter. So, we don’t see any special item here. With respect to the U.S. and the $2 billion that were stated by the Chairman, and definitely we don’t have the presence in the U.S. that we would like to have. We have – we’re in the Northeast. We would like to be as in any other country, top three player in the region. We need to do this basically right now organically. We have still lots of things to do, and at some point, we will take a look to any opportunities we have in the country, in order – in the area in order to accomplish this objective of being a top-three player in the region. However, today what we need to focus is in improving the franchise, improving the quality of service, and growing our franchise. And connecting more with Santander consumer which is our ultra – a very good operation that will give us very good surprises over the next quarter, and altogether, I’m sure we’ll be on top of this $2 billion.

Okay. I do notice questions through the phone. So, we are set if there is. I thought we have covered all questions received. If this is not the case, please contact us on the Investor Relations department. Thank you for being here. And thank you for receiving the results of Santander. Javier Marín Romano: Thank you very much.