Good morning, everyone. Thanks for joining to this Banco Santander 2020 Full Year Earnings Presentation. As every Q4 with full year presentation, we have today our Executive Chairman, Ana Botin who will address with the CEO, the performance of 2020 and the different regions and some of the countries' review. Then the Executive Chairman will make you know a disclosure on the progress on the transformation on the next step that will kick off from 2021 to conclude with medium-term outlook and key takeaways before jumping into the Q&A session. So with no further delays, Ana, please.

So thank you, Sergio and good morning, everybody. And I want to start by saying that I hope you and your closed ones are safe and well. It's been a difficult year for everybody and all of us have lost colleagues and friends and so our thoughts are with everybody that has had that terrible experience. Without further ado, again, welcome to our 2020 presentation. We will cover the results for the year, we will give you our views for the medium-term and cover some of the strategic priorities that we will be focusing on for the next few years. [technical difficulty] sorry, cost of credit at 1.28% and slightly better than the improved guidance that we gave last quarter. And finally, we have continued to generate very strong growth in organic capital, reached 12.34% at the end of the year which is above our target range. We, in November 2020, paid a dividend of new shares equivalent to EUR0.10 per share and the Board of Directors' intention is to go back to the 40% to 50% as soon as we can. We are also proposing to our shareholders - end of March a EUR2.75 per share in cash against 2020 results. Jose Antonio will review that in more detail the full year results, but just to point out again, that we delivered a EUR5 billion underlying profit that's after a 50% increase in provisions due to COVID, with very good cost control as you can see, and net operating income in constant euros as I mentioned, which is up year-on-year. Again, these underlying results and provisions represent a prudent approach to the COVID related potential losses, which we have been guiding through the year. At the base of these strong underlying numbers is again our geographical and business diversification.…

[technical difficulty] cost. So excluding then, total income remained stable as the decrease in activity on lower interest rates were offset by higher volumes, the lower cost of deposits and good performance in global businesses. We accelerate our cost reduction and we expect to keep on track in this year. As the result, net operating income in a very difficult year grew 2% year-on-year in constant euros, higher loan loss provisions due to the COVID crisis, with the cost of credit in line with our guidance during the year. All in all, underlying attributable profit reached the EUR5 billion as I already mentioned. We had a very positive fourth quarter, we improve our business activity and customer revenue reached its highest figure in the last eight quarters. Finally, we recorded in the year EUR13.9 billion negative net capital gains and provisions, following the EUR12.6 billion impairment we announced in June. The bank has recorded charges of EUR1.1 billion in the fourth quarter. These charges in the fourth quarter were mainly restructuring cost in Spain, but also in other countries in Europe due to the transformation process we are implementing to increase productivity and efficiency. In Europe we expect total restructuring costs in 2020 and 2021 of around EUR1.5 billion, and we expect savings of a EUR1 billion in 2021 and 2022. Going through the P&L along the main lines of the P&L, Q4 customer revenue continue to consolidate this upward trend, while trending towards the pre-COVID levels. 4% growth in NII versus Q3 with the highest NII in the last two years, mainly driven by Spain, UK and South America. Fee income grew 3% primarily backed up by South America, costs were up 4% in the quarter partly affected by seasonality labor agreements in Argentina and Brazil where are the…

So thank you so much, Jose Antonio. Allow me now to say, first of all, again, that I am really proud of the progress we have made since 2014. I am excited about the opportunities ahead. And I would like to start by saying again, that our eight-month values remain the same as we've said for several years. They provide very strong foundations for the Santander more, while it's allowing us to deliver today. Our aim is to be the best open financial services platform by acting responsibly and earning the lasting loyalty of all our stakeholders. Just a few minutes to show you how we had delivered results following the strategy for a number of years, again, our key is on our approach to capital management discipline have been key. If you look back to the last six years, '14 to '19, of course, 2020 was an outlier. We have doubled profits, improved - sorry I hadn't put the - if we look back to our performance for the last six years, 2020 was a clear outlier, I just want to remind ourselves that we have doubled profits, improved our underlying return on tangible equity by more than 400 basis points in 11.8% in 2019, 12.34% today, very importantly, and I think these numbers show the transformation of our model. Our capital base has grown by EUR29 billion, that's a 70% increase, with only a 13% increase in RWAs, again, testament to a radical change in the model which we'll continue into the future. And that's what gives us confidence again for the next few years. If we look ahead, we will continue following the strategy which has served us well, allocating resources efficiently, focusing on the profitable growth, which makes us very different from many of our peers…

Yes, indeed, thank you, Ana, Jose Antonio. please now we have time for Q&A. So go ahead. We can go ahead with the Q&A session.

Thank you very much. Ladies and gentlemen, the Q&A session starts now. [Operator Instructions] Thank you. Your first question comes from Jernej Omahen from Goldman Sachs. Please go ahead.

Yes. Good - first of all, good morning from my side. I'm just going to ask two questions, please. The first one is on the return on tangible equity target, and how that could translate into tangible book value per share growth. I guess we've seen Santander records, you know, considering the circumstances, high levels of underlying profitability, but the tangible book value per share went backwards this year for reasons that we're all familiar with. I mean, what gives you the confidence that if you meet the targets that you've set yourself for this year, that they will translate into tangible book value per share growth as well? And then the second question I have is on the EBA stress tests, they've announced the underlying assumptions for these tests and some of them seem to be very, very severe just forecasting a perpetual recession pretty much. And I was wondering to what extent, if at all, do you expect the results of the tests to drive the supervisory decisions around capital return dividends, buybacks, et cetera? Thank you very much.

So thank you so much. So in, you know, this year tangible NAV, as you've seen and you said it, you know, has been very affected by exchange rates. We're working very hard on continuing and accelerating the change in the model, which we have really done a lot of that in the last five, six years. At the end, it's about reallocating capital to profitable growth, first, second, ensuring diversification, you know, US has been - has given us a very good return in dollars, and we need to ensure a proper balance between higher volatility currencies and the more let's say, stable currencies like the dollar and the euro. I say this, you know, maybe the pound also. So that is really the main way we are planning to improve the tangible NAV, continuous capital reallocation to the higher growth and profitability and throwing the balance and diversification through the cycle. If we look at the 13% to 15%, medium-term target, I can say, first, it's based on revenue growth. So we are saying middle - mid single-digit revenue growth at the basis of that. If we look at the shorter-term in terms of '21, we're looking to volume growth based on volumes, especially in the Americas, we are looking at positive assets repricing, we're looking at delivering half of the EUR1 billions or EUR500 million additional reduction in costs in Europe, and the cost of credit that trends downwards. So again, really doing everything we've done this year, but just doing it a bit more in a bit better for '21. And for the medium-term, focusing on these three priorities like this year, we have already seen I think Jose Antonio mentioned that it's not just the corporate investment bank and wealth management, which are now close to 40%. Again, these are higher - let's say, higher return on capital businesses, but acquiring and payment through PagoNxt should also help us a lot on this change in the model. On the EPA stress test. Yeah, there are some issues there that maybe Jose Antonio wants to comment. However, we feel that our capital buffers and our diversification, the fact that our pre-provision profit this year, which is around EUR24 billion, we could double provisions of 2020 and still not eat into capital, the buffers, we have even after that of EUR17 billion, EUR18 billion, you know, all of that gives us confidence that whatever happens with a stress test, which I don't know, you're going to give some details on, there are some issues in the stress test that mean that we might be penalized, but I don't know how you want to -

Well, as you know, you're in the stress test, we've been performing very well, we are a top performer there. Our capital depletion was lower than our conservation buffer. So and while we will have B2C on top of this, yeah. So we expect - do expect to continue to perform well there are the synergies are more severe. And there are two issues that we've been raising over the time, that particularly affect emerging market exposure like our case that is the static balance sheet that is probably as you know that in emerging markets loan books particularly very short run and in one year or two due to the - you renew the whole balance sheet and but is what it is. And the second one that is new, somehow new is the provisions on the emerging markets are not allowed to depreciate with the depreciation of the currency that, well, technically speaking is not very natural, but is what it is. Having said that, we continue to expect during our diversification and the resilience of our business model, the stronger - we have the stronger pre-provision profit in the industry. We continue to perform well on our capital depletion new model that was in the industry.

Yeah, if I may add just another for context, we have had in 10 years probably two of the biggest global crisis that have happened in decades. And just to understand the stability in our model, if we look at our performance in underlying profit in 2020, about EUR5 billion that's more than double what we had at the low point in 2008 and in 2013, in the 2008 crisis, again, it shows that we've made a lot of progress. And of course, this with 70% more capital than we had then. So, again, the stability in our earnings, diversification and how we perform under stress, I think is evident from what we have done in two global crises so far.

Thanks, Jernej. Next question, please.

Thank you. Your next question comes from Ignacio Ulargui from Exane BNP Paribas. Please go ahead.

Hi, good morning, everyone and thanks for taking the questions. I just have two questions. And one is on the Fiat strategy and just wanted to get a bit of your thoughts on how do you see these sort of like new business additions on Payment, Wealth Management or Investment Banking Pools to be or having to make a bit more dynamic performance on fees? I mean I do see a very clear tailwind from the bit of the unwinding of the one-year to three-year strategy in terms of funding costs and that is being very visible in NII in the UK also in the Spain so I mean, just want to get a bit of your thoughts on how do you see fees into the next couple of years? And I mean, what is the relevance of the Payments business on that process? And also, second question is on the Brazilian business, and what has been a very good performance much better level we expected at the beginning of the year in this pandemic. I mean, which levers do you plan to take you're still continue improving the contribution of the country to the Group? Thanks.

So you know, the growth in fees would continue to come from CIB Wealth Management of course, also, Retail is incredibly important, Insurance. So One Europe strategy, but also in the Americas, retail fees are also a big driver. It is clear that there's still uncertainty over the next few months. So we could have in the first half, not a great performance in fees, that's yet something which will depend a lot on the health situation. But what we have seen is that, once and we see that in the second half of the year, that once things open up a bit, the performance is much better. On the Payments, you'll see, again, with the listing of Getnet Brazil, just a flavor of what we can do in this space. The key thing here is that, we already have performed incredibly well in acquiring in Brazil or Spain within a couple of years of having our own, let's say, Payments factory, once we extend this to other countries. You asked about the timing, that's always difficult, but I would say a few years, we've said medium-term, you should see a very significant increase coming from these areas. You want to answer on Brazil, I mean, Brazil, I think it's every time in Brazil, we have a crisis. There's always uncertainty as to the performance, but it has actually has done a very good job. And again, remember that Brazil has historically low rates. So we now have a bit steeper interest rate curve which is also positive. And we are looking to growth in volumes and positive assets repricing for, I think I said that already for 2021 and cost of risk trending downward, in general, in all our geographies once more than others and it could be variations there. But I think that's really the picture for Brazil. And of course, the lower rates mean that that helps customers, you know, pay - for Payments and good performance I think as they exit moratoriums. Is that roughly -

Yeah, is basically we rely on volumes with expect to be growing double-digit in Brazil, as we did in 2020. So, this is probably the main lever, margins more stable than the ones we had in 2020. In 2020, remember about that we have the regulatory impact of the, what they call their personal check that this kind of overdraft that affect significantly their NIM and NII. Well at the end the driver is market share gains and our capacity to keep growing the number of customers, you see the number of customers in the country had been booming in the last three, four, five years. Yeah. So and we are still there. Ana already mentioned Getnet, but Getnet is an example, we can go do all the Auto Finance, where our market share is 25%, you can go to our Agro business where we went from 2% market share to 9% market share and we keep counting in corporate wall, our cost or risk went down, in CIB we're a market leader. So while the franchise has very good momentum and we expect to continue these trends.

Thanks, Ignacio. Next question, please.

Thank you. The next question comes from Ignacio Cerezo from UBS. Please go ahead.

Yeah. Hi, good morning and thank you for the presentation. Two questions for me. The first one, if you can clarify or give us some colors around regulatory headwinds on capital in '21 and '22? And the second question is on the US business, obviously, the cost of risk performance has been very positive in the year again much lower than could be anticipated probably at the beginning of the year. There's a new stimulus plan come in with probably the possibility of cash and checks actually being handed again to customers. Do we have to still expect an increase of provisions in peers in particular? Or do you think the level of provisions in 2020 sustainable for the future? Thank you?

So let me answer the US and then I'll pass over to you, Jose Antonio. So in terms of the US, we have been reviewing this in line with the peers that have presented results, we're very much aligned with our peers, regional and even the large banks, if we compare likes-for-likes in term of portfolios, we believe we're being prudent provisioning. So, you know, I would expect that to continue into 2021. The stimulus is going to be obviously very important for this. And so there's really nothing there, which should be out of line with the rest of our peers. Again, if you compare portfolios of the same type of segments, I mean, some of the larger banks have more C&I than we do. And that's why you've seen some reversals, that is not the case for us. And in terms of the consumer lender, again, we're in the range of our peers, but it had - it has performed very well, we believe that will continue to be the case into 2021. In terms of - do you want to answer the other question?

Yeah. In terms of capital regulatory headwinds in 2020, we were the impact of the different regulatory changes were around lately about 40 basis points in 2021. We - as you mentioned 2021 and 2022. Well in 2021 that I have more visibility we still continue to see some impacts coming from basically all the team review of the models, low default portfolios, all these issues that probably will come difficult to say always when you face this, but we expect to lower the impact on the one we've had in 2020, that I remember was slightly about 40 basis points. And in 2022, while probably the trend is downwards, clearly, we spent [RoRWA] [ph] team goals, and all the review of the models and all these things will capture significant risk-weighted asset reduction in some models that we are building.

Thanks, Ignacio. Next question, please.

Thank you. Your next question comes from Francisco Riquel from Alantra. Please go ahead.

Yes, and thank you for taking my questions. And first one, I wonder if you can comment a bit more on the Getnet listing in Brazil, if you plan to offload more assets from PagoNxt into this unit. And what are your ambitions with this listing if you plan to eventually monetize this asset term or not? And the second question is a follow-up on the US business that you guys mentioned operationally, I wonder if you can update strategically your views about the US and Retail business. I have also seen that you have frontloaded some restructuring expenses if you can also comment on this of cost cutting plans here? Thank you.

So at the moment, we have just announced the listing of Getnet Brazil. This is not selling of shares, it's just a listing of Getnet Brazil. We are, as I explained on PagoNxt, we'll be giving more information during the course of 2021. The goal is that PagoNxt include three types of businesses, but really mainly two, one is acquiring business where we will be bringing together Getnet Brazil with Getnet mobile platform and eventually Wirecard, which we closed just a few days ago and SEMs. So that would be a global merchant acquirer eventually, but Getnet it's about a listing. In terms of the trade, it's also going to be part of PagoNxt. So there we have Ebury, Mercury, The Payments Hub and probably other products related to trade. So we have all of that in a global platform. We believe that is a very interesting business. It's a high growth business in payments related activities. In some cases, we're already given service to third-parties like in The Payments Hub. So that is really the goal with PagoNxt and Getnet.

Well, the second question about the US is strategy on the -

Yeah, the US.

And I may take the cost cutting in the US, we're going to continue to naturally to improve efficiency in the US. Well, we have two angles there, they are probably there's more efficiency gains to making in the bank while SCUSA is growing, and probably the costs will go up. Overall in the US, I would say the costs going forward will be quite flattish, yeah. in the whole US, but not a specific restructuring cost and the way we are doing in Europe. Now, this is not in our vision for 20 - our plans for 2021.

Yeah, in terms of the strategic view of the US. First is that the US market is the best risk return market probably in the world, aside from being large and a source of talent and innovation, institutional stability, there are strong and increasing connections to not just to LatAm, but to Europe. And what's very important is that both Santander Consumer and SBNA are working increasingly together a lot of the origination in Santander Consumer is financed by SBNA. So you know, we look at the US as a country, not as pieces of a different business, this is not different, by the way, what - to what we do in Brazil or Europe. And again, this year, it has - we have had some positive one-offs, but even in constant currency, we have had an increase in profit from the US. And the adjusted returns once we adjust for excess capital, which will not be there forever, actually add even a bit above the cost of equity, depending how you see that of 8.5%. So there are no plans to sell the business. And we are working as in the One Europe with increasing connectivity, not just in terms of working with customers across different Santander countries. Again, I think I mentioned in corporate investment bank and commercial we have seen 30% increases year-on-year, but also in building together. And so this is incredibly important. It was not an option a few years ago, today, you can leverage the same way you can build for Poland, UK and Spain, you can build for Mexico, US and you know, eventually why not Brazil or Europe. So this is really the very different approach to the management of the business, which is what we're calling the One Santander new operating model. So again, we are very focused on growing in a profitable way and building on the foundations of the last few years.

Thanks, Franco. Next question, please.

Your next question comes from Carlos Cobo from Societe Generale. Please go ahead.

Hello. Thank you very much for the presentation and the extra detail on your vision for the future. Going a little bit back to the numbers of the quarter. Could you touch on the regulatory impact for 2021 again? Sorry to insist, and you said below the 40 basis points in 2020. The last guidance that I had was an impact of 10 basis points to 15 basis points in 2021. Are you still comfortable with that or there is some room for slightly higher impact just to fine-tune the model? And then two quick questions are more strategic. If Payments a global business, and that's how you presented, why listing the Brazilian subsidiary? Just for me to understand, why starting that why not been more global in the distance? And the second question would be on COVID losses. Could you try to help us to gain a little bit more confidence on what's the vision or the outlook for 2022? What's the scenario of defaults that you'll cover for 2022? Because we thought the regulatory forehands and the support from the Stage rolling over the grace period from capital amortization. And on the restructuring of credits, we don't really have any visibility. It doesn't feel like 2021 is the year to see the big increase in MPLs. So what's the scenario that you have for 2022, where we should assume further progress in the cost of risk reduction? What's the percentage of total say, Stage II loans you expect to default? And how much of that has been covered already? Thank you very much.

So I will take the strategic ones and then I will - you can answer the capital and COVID. But in terms of the Getnet listing in Brazil, this is the first step. The reason for that is exactly that what you said was, the goal is to create a global platform, which would be, let's say, parallel to the banks. So think about the One Santander, the banks, as owning customer relationships, think about PagoNxt as a global platform for acquiring, which provides the backbone, let's say, product factory for payments. This is really how we think about it. And so this is just the first step to create that global acquiring platform, which would allow us to add value to, you know, do not just do payments, our vision is that payments will happen, we will not actually do payments, but they will be the cornerstone of value-added services. So again, it's not about a processing business. It's about a value-added services business to our customers, built, of course, on the - eventually on the processing, but it's more than that. And to do that we actually need to have it all together, you know, outside of our listed banks, but also out outside our non-listed banks. And I hope that answers the question. We are - we will be giving more information and adding to this during 2021 and a lot more a year from now. Again, these are assets we have been building individually for the last five years. We have shown the work and now we want to make sure we take it to the next level. We have been rightly so challenged by investors and analysts, you guys, why do you not work better across countries? Well, we have done that in CIB, in Wealth Management, we are now going to do that for mass market and SMEs. So think of PagoNxt and our Payments businesses as providing a global platform where we can truly leverage the 147 million customers that we have in Retail, that we have in SMEs 4 million of them that we have in merchants. And again, we'll provide further clarity, but this is really the division. So I think the second question was again on the regulatory headwinds, I believe for 2021 and COVID losses.

Yeah, the first one, 2021, while I already elaborated on the regulatory capital impacting 2021, that we expect to be lower than the one in 2020. The main impact comes from the team and from the models. And well we expect like two stages, the first stage is to go up and to have an impact in 2021 and the second stage, once we get more models get approved. Remember, that we still have significant amount of our portfolio under the standard models and some older models, our risk weighting is higher than our competitors. And at some point, we will come back with this for - in the medium-term. So in the short run, the numbers I gave you is lower impact in 2020. In the medium-term, we expect some positives from this side probably to split this, IR can talk to you in the small numbers and in more detail on this. On the COVID losses, if I understood you well, you're asking about 2022. Okay, so we guide you in 2021 to, this is an area natural is an area of uncertainty and everything is based on models, we'll still have the health crisis going on. What do we expect with, as Ana I mentioned before, we are working with kind of IMF scenario? So with this scenario we expect this year, the cost of risk to go down from the 12.8% we had and start the convergence to over the 1%. In 2022, I don't have any reason to think if we were right in anticipating our scenarios in the IFRS 9 forward-looking we built EUR4 billion of capital provisions that till now we are - in our balance sheet that we expect this to cover the majority, if not all the losses that arise from this. Can we be wrong in the scenario, maybe more negative or more positive, but we are relatively are comfortable with this. And we even the quarter we keep reviewing our scenarios, our portfolios and building provisions accordingly with a conservative and prudent approach. And I do think from the 12.8%, I will bet on, reducing in '21 and reducing again in 2022. So this will be my initial expectation.

Thanks, Carlos. Next question, please.

Thank you. Your next question comes from Alvaro Serrano from Morgan Stanley. Please go ahead.

Hello, good morning. I've got a couple of questions I guess on capital allocation. The first one, hopefully the capital build journey is now over. When I think about going forward, it sounds like clearly emphasis of growth is still Americas, but it sounds like a bit more balanced than previously. If I think about the PagoNxt, the Digital and the Consumer Bank initiatives, obviously, again, there was a tremendous success, because basically you returned back to your natural market share with the acquisitions like Wirecard in Germany and the push to become a global payments platform. So how should we think about you achieving sort of growth outside your natural footprint? What gives you that confidence? And second on Openbank and Consumer Bank? You're into double profits? I think it is which is quite, I mean, it feels ambitious. Maybe you can talk us through which regions do you expect to grow the most then? And again, it is - some of it is outside your natural sort of footprint like Germany where you've got the Consumer Bank there, clearly, but what are the growth sources were in the region there? And the second question also is more sector level, it's around, obviously, the sector, the inability to distribute, is accumulating capital, not just for you, but across Europe. And I would love to hear your thoughts and do you think this is going to have long lasting effects in terms of competition? Do you think it can trigger sort of M&A and even cross border M&A? And in that sort of sense, I've heard you loud and clear several times that you don't need to do M&A? But what would it take for Santander to be open to cross border M&A or M&A in general? What would you be looking for? Thank you.

So you have heard me say, and I will repeat loud and clear, we're not interested in cross border M&A in Europe, we need further significant changes on the regulatory side for that to begin to be something we might look at. We are and as you've seen in the last months, we are much more active on the Digital and Payments side, we believe that we already have enough customers, enough scale, there's a lot of talk about scale, you need scale, you know, we have a 47% cost income, we are guiding to even lower than that in the next few years. Because we do have scale, we are the number one bank and I say, number one bank across Europe and the Americas in terms of number of customers, this is the scale that matters. Second, our revenues with you know, stable revenues in a year like 2020, I think that is remarkable. And so that is the scale we are aiming for. We have guided to single, sorry, mid single-digit revenue growth for the medium-term, even in 2021. And again, there's lots of uncertainty in the first few months. And that could affect our revenues in the first few months, especially on fees. But we feel confident that after what we've done in 2020, that we have a scale to drive revenues and we have the scale to drive with PagoNxt, with the Digital Consumer Bank to drive profitable growth. So again, not planning to M&A, cross border M&A, but rather looking at additional Digital opportunities. In terms of doubling the profit on the Digital Consumer Bank, that is going to be driven a lot by revenues. I, you know, 18 million active customers in Santander Consumer, Europe, 6 million new consumer customers every year. I…

Thank you. Next question, please.

Thank you. Your next question comes from Daragh Quinn from KBW. Please go ahead.

Hi, good morning. Thanks for taking my questions. It's Daragh from KBW. One question just on the capital targets and dividends, you know you generated capital this year and headed back towards your targets presumably even if we forecast your cash dividend, you would still be looking to generate capital organically. Could you just say you know maybe how that would change or not a right look forward to the level of capital you think you should be holding in the future? And then on the dividends you can You can just confirm that there won't be that you're not planning any scrip dividends in the future, because obviously, that has been one of the headwinds in the past TNAV per share growth? And on the business side of things maybe just if you could give a quick comment on the margin in two geographies, one in the UK, which has seen quite a strong improvement in margin and NII over the last couple of quarters as you've changed the pricing policy on the 123 accounts, if you could just comment on where things go from here and the outlook for 2021 in the UK and on the US, excluding the consumer business, it looks like it's just been very ongoing weak margin NII performance from the banking business. Maybe if you just provide a little bit of color of what's going on there and what's your outlook is? Thank you.

So on capital, you know, our targets are to be between 11% and 12%. There is, we believe going forward, we're going to have more capital flexibility as you've sort of hinted that, we are planning to go back to the 40% to 50% on an underlying profit distribution - on an underlying basis as soon as we're allowed to do that. And the most important thing is that, even in a difficult year, we have made further progress in what we call the transformation of the model. You know, it happens at an operating level, which is what's driving the financial transformation, the operational goal, the One Santander new operating model is actually building for example, a common mobile app across Europe just built once and used across different countries. On a financial level, it means that, you know, we grow our earnings whilst growing capital, but we grow less our balance sheet and lending in proportion to that growth. And again that's what's going to allow us to generate more organic capital and better profitability. We are not, you know, this scrip is a I know we've gone back in 2020 to a scrip. And again, we need to keep a balance between Institutional Investors and also Retail and this Group was the only way we could get some dividend even though it was in shares to our Retail, the Board and Management intention, as we have said many times for the last six years is to go to 100% cash, this is what we're intending for 2021. And we will get news on what is the you know, recommendation from the ECB for European Banks in Q4, we'll be accruing a cash dividend this year. Hopefully we can return that to shareholders in some time in Q4…

Yeah, it's done. Yeah.

Okay, so thank you.

And our last question, please.

Thank you. The next question comes from Fernando Gil de Santivanes from Barclays. Please go ahead.

Hi, hello, good morning. Thank you for taking my questions and thank you for the presentation. A quick question on Spain NII and the trends. I mean, how much are you accruing on TLTRO? And how much do you think this will affect going forward in 2021 and 2022?

That is a question for Jose Antonio. So -

So I don't have the numbers -

So Jose Antonio is going to take - give it to our CFO. Thank you, Jose.

Thank you.

And we have some others in the room. So maybe.

Yeah, we currently have a total of around EUR75 billion in TLTRO. And obviously, we believe that we can apply the new conditions described recently. And that will mean an increase in '21 relative to '20 of around EUR300 million, of which, EUR250 million will come in Spain, more or less.

I think we are not taking - no more questions, limit really here already. So thanks very much, everyone. Thanks, Ana, Jose Antonio. And obviously the IR teams have to dispose off.

Yes, sorry. It was a bit longer presentation. We usually get feedback more time for questions. We try to answer all the questions you've asked. That last one really was quite something I'm very happy to have Jose with us here. Thank you so much everybody and you know, we're very proud of our results. Again, any further questions, our Sergio and Jose are at your disposal and stay healthy and safe. Thank you.

Thank you. Bye.