Form 8-K Santander Consumer USA For: Feb 03

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February 3, 2015 6:03 AM EST



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 3, 2015
SANTANDER CONSUMER USA HOLDINGS INC.
(Exact name of registrant as specified in its charter)
Delaware
(State or other Jurisdiction of Incorporation)
001-36270
(Commission File Number)
32-0414408
(IRS Employer Identification No.)
�
�
�
1601 Elm St. Suite #800
Dallas, Texas
(Address of Principal Executive Offices)
�
75201
(Zip Code)

Registrants telephone number, including area code: (214) 634-1110
n/a
(Former name or former address if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
�����Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
�����Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
�����Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
�����Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



����
����
����


Item 2.02. Results of Operations and Financial Condition.
On February 3, 2015, Santander Consumer USA Holdings Inc. (the Company) issued a press release announcing its financial results for the year ended December 31, 2014. Copies of the Companys press release and an investor presentation for the year ended December 31, 2014 are attached hereto as Exhibits 99.1 and 99.2, respectively, and incorporated herein by reference.
Note: Information in this report (including Exhibits 99.1 and 99.2) furnished pursuant to Item 2.02 shall not be deemed to be filed for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section.

Item 9.01. Financial Statements and Exhibits.
Exhibit No.����Description
Exhibit 99.1 ����Press Release of Santander Consumer USA Holdings Inc., dated February 3, 2015
Exhibit 99.2
Presentation Materials of Santander Consumer USA Holdings Inc., dated February 3, 2015.


2



SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: February 3, 2015
SANTANDER CONSUMER USA HOLDINGS INC.


By: /s/ Jason A. Kulas��������������������������������������������������
Name: Jason A. Kulas
Title: President and Chief Financial Officer
�
�


�




Exhibit 99.1
�
Contacts:
�
Investor Relations
Evan Black�& Kristina Carbonneau
800.493.8219
��
Media Relations
Laurie Kight
214.801.6455
Santander Consumer USA Holdings Inc. Reports Fourth Quarter and Full Year 2014 Results
Dallas, TX (February 3, 2015)  Santander Consumer USA Holdings Inc. (NYSE: SC) (SCUSA) today announced net income for fourth quarter 2014 of $247.0 million, or $0.69 per diluted common share, up from the third quarter 2014 net income of $191.4 million, or $0.54 per diluted common share, and up from fourth quarter 2013 net income attributable to SCUSA shareholders of $113.9 million, or $0.33 per diluted common share.
Fourth Quarter 2014 Key Highlights:
"
Return on average equity of 29.1%, up from 23.9% in prior quarter and 17.3% in prior year fourth quarter
"
Return on average assets of 3.1%, up from 2.5% in prior quarter and 1.8% in prior year fourth quarter
"
Total originations of $6.1 billion, seasonally down from $7.4 billion in prior quarter and up from $5.8 billion in prior year fourth quarter
"
Managed assets of $41.2 billion, up from $40.4 billion as of prior quarter-end and $30.0 billion as of prior year-end
"
Net charge-off ratio of 8.6%, seasonally up from 8.4% in prior quarter and up from 8.1% in prior year fourth quarter
"
Provision for credit losses of $560 million, down from $770 million in the prior quarter and $629 million in prior year fourth quarter
"
Efficiency ratio of 19.1%, up from 16.0% in prior quarter, and in line with 19.2% in prior year fourth quarter
"
Unsecured loans of $1.8 billion, up from $1.3 billion as of prior quarter-end and $954 million as of prior year-end
Net income for the full year 2014 was $766.3 million, or $2.15 per diluted common share. Core net income1 for the full year 2014 was $842.2 million, or $2.37 per diluted common share, up from prior year net income attributable to SCUSA shareholders of $697.5 million, or $2.01 per diluted common share.

"We are pleased to report strong results both for the quarter and for the year, well ahead of our objective set at the beginning of last year with core EPS1 growth of 18 percent. The annual results included strong origination volumes, growth in the serviced for others portfolio and industry-leading efficiency despite an increase in regulatory and compliance costs. In 2015, we will continue to focus on optimizing the mix of retained assets versus those sold and serviced for others, continuing our presence in prime auto and unsecured consumer markets and efficiently funding our business," said Tom Dundon, Chairman and Chief Executive Officer.
�
In the fourth quarter, total originations were $6.1 billion, including $2.4 billion in Chrysler retail loans, $722 million in Chrysler leases originated for our own portfolio, and $565 million in Chrysler lease originations facilitated for an affiliate. Other originations, including other auto and unsecured consumer loans, totaled $2.5 billion for the fourth quarter 2014. For the full year 2014, origination volume was $27.5 billion, including more than $11.5 billion in Chrysler retail loans, $4.5 billion in Chrysler leases originated for our own portfolio, and $2.2 billion in Chrysler lease and dealer loan originations facilitated for an affiliate. Other originations, including other auto and unsecured consumer loans, for the full year 2014 totaled $9.4 billion. Total originations for the full year 2014 grew 33 percent compared to the full year 2013.





1 For a reconciliation from GAAP to this non-GAAP measure, see "Reconciliation of Non-GAAP Measures" on Page 14 of this release.

1


Finance receivables, loans and leases, net2, increased 6 percent to $28.8 billion at December�31, 2014 from $27.3 billion at September 30, 2014 and increased 23 percent from $23.4 billion at December�31, 2013, driven by Chrysler Capital and unsecured consumer lending. Compared to the third quarter 2014, the fourth quarter excluded an off-balance sheet securitization due to timing, therefore, SCUSA retained higher quality assets on balance sheet at quarter-end. SCUSA's retained portfolio average APR as of the end of the fourth quarter for retail installment contracts was 16.0 percent, down from 16.3 percent as of the end of the third quarter 2014 and the end of the fourth quarter 2013.

Net finance and other interest income increased 13 percent to $1.1 billion in the fourth quarter 2014 from $953 million in the fourth quarter 2013, driven by a 25 percent growth in the average portfolio. The provision for credit losses decreased to $560 million in the fourth quarter 2014, from $770 million in the third quarter 2014, and $629 million in the fourth quarter 2013. The quarter-over-quarter provision decrease was primarily driven by positive model impacts and a decrease in months' coverage, partially offset by expected seasonal patterns in charge-offs. The allowance for loan losses remained flat at $3.1 billion quarter-over-quarter. The allowance for loans ratio3 decreased to 11.5 percent as of December�31, 2014 from 12.1 percent as of September 30, 2014.
"After reviewing underlying metrics and trends, our data supported a decrease in months' coverage on our auto portfolio, leading to an $0.11 EPS increase. Based on the trends we are seeing in the market as well as in our portfolio, we remain confident in the adequacy of our coverage," said Jason Kulas, President and Chief Financial Officer.
Consistent with expected seasonal patterns, SCUSAs net charge-off ratio increased slightly to 8.6 percent for the fourth quarter 2014 from 8.4 percent for the third quarter 2014, and increased from 8.1 percent for the fourth quarter 2013. Additionally, SCUSAs delinquency ratio increased moderately to 4.5 percent as of the end of the fourth quarter 2014 from 4.1 percent at the end of the third quarter 2014, and is in line with 4.5 percent delinquency ratio as of the end of the fourth quarter 2013.
During the quarter, SCUSA incurred $230 million of operating expenses, up 14 percent from $203 million in the fourth quarter 2013, primarily due to SCUSAs strong asset growth on and off-balance sheet over the previous year, leading to higher headcount. Consistent with seasonal trends of increased servicing expenses at the end of the year, fourth quarter 2014 operating expenses increased 14 percent from $202 million in the third quarter 2014. SCUSA produced a 19.1 percent efficiency ratio for the quarter, compared to 19.2 percent in the same period last year, evidencing our continued ability to scale despite an increase in regulatory and compliance costs.
During the quarter, SCUSA continued to demonstrate consistent access to liquidity with the execution of a $1 billion securitization from SDART4, a $700 million increased capacity in private term amortizing facilities and an additional $500 million in warehouse borrowing capacity.
Additionally, SCUSA continued to focus on the growth of its capital-light, higher ROE serviced for others platform by completing loan sales of $1.1 billion through monthly loan sale programs to Bank of America and Citizens Bank of Pennsylvania, and facilitating $565 million of lease originations for an affiliate. For the full year 2014, SCUSA sold or facilitated originations of $9.2 billion to third parties or to an affiliate. Servicing fee income totaled $19.6 million in the fourth quarter 2014, up from $4.5 million in the fourth quarter 2013 primarily due to the increase in the portfolio of loans and leases serviced for others to $10.3 billion as of December�31, 2014 from $4.5 billion as of December�31, 2013. During the fourth quarter 2014, SCUSA's serviced for others portfolio increased slightly from $10.2 billion at September 30, 2014 and servicing fee income was relatively flat quarter-over-quarter due to SCUSA's transferring the servicing of $878 million in dealer loans held by an affiliate, the absence of an off-balance sheet securitization and normal portfolio runoff. For the fourth quarter 2014, net investment gains, which primarily consist of gains on sale, totaled $21.3 million, down from $38.0 million in the third quarter 2014 and $31.7 million in the fourth quarter 2013, driven by the timing of asset sales.






2 Includes Receivables held for sale, Retail installment contracts held for investment, Unsecured consumer loans, Receivables from dealers held for investment, Leased vehicles and Capital lease receivables
3Excluding impairment on our purchased receivables portfolios
4 Net bonds sold of $941 million

2


Conference Call Information
SCUSA management will host a conference call and webcast to discuss the fourth quarter results and other general matters at 9 a.m. Eastern Time on Tuesday, February 3, 2015. The conference call will be accessible by dialing 844-856-2691 (U.S. domestic), or 815-926-1990 (international), conference ID 62509092. Please dial in 10 minutes prior to the start of the call. The conference call will also be accessible via live audio webcast through the Investor Relations section of the corporate website at http://investors.santanderconsumerusa.com. Choose Events and select the information pertaining to the Q4 2014 Earnings Call. Additionally there will be several slides accompanying the webcast. Please go to the website at least 15 minutes prior to the call to register, download, and install any necessary software.
For those unable to listen to the live broadcast, a replay will be available on the companys website or by dialing 855-859-2056 (U.S. domestic), or 404-537-3406 (international), conference ID 62509092, approximately two hours after the event. The dial-in replay will be available for two weeks after the conference call, and the webcast replay will be available through�February 3, 2016. A fourth quarter company update will also be available by visiting the Investor Relations page of SCUSAs website at�http://investors.santanderconsumerusa.com.

Non-GAAP Disclosure
This press release includes certain non-GAAP financial measures. A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). SCUSA believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and SCUSAs marketplace performance. This additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures used by other financial institutions.

Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions, or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as anticipates, believes, can, could, may, predicts, potential, should, will, estimates, plans, projects, continuing, ongoing, expects, intends, and similar words or phrases. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements are not guarantees of future performance and involve risks and uncertainties which are subject to change based on various important factors, some of which are beyond our control. For additional discussion of these risks, refer to the section entitled Risk Factors and elsewhere in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q filed by us with the SEC. Among the factors that could cause our financial performance to differ materially from that suggested by the forward-looking statements are: (a) we operate in a highly regulated industry and continually changing federal, state, and local laws and regulations could materially adversely affect our business; (b) adverse economic conditions in the United States and worldwide may negatively impact our results; (c) our business could suffer if our access to funding is reduced; (d) we face significant risks implementing our growth strategy, some of which are outside our control; (e) our agreement with Chrysler may not result in currently anticipated levels of growth and is subject to certain performance conditions that could result in termination of the agreement; (f) our business could suffer if we are unsuccessful in developing and maintaining relationships with automobile dealerships; (g) our financial condition, liquidity, and results of operations depend on the credit performance of our loans; (h) loss of our key management or other personnel, or an inability to attract such management and personnel, could negatively impact our business; (i) we are subject to certain regulations, including oversight by the Office of the Comptroller of the Currency, the CFPB, the Bank of Spain, and the Federal Reserve, which oversight and regulation may limit certain of our activities, including the timing and amount of dividends and other limitations on our business; and (j) future changes in our relationship with Santander could adversely affect our operations. If one or more of the factors affecting our forward-looking information and statements proves incorrect, our actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements. Therefore, we caution not to place undue reliance on any forward-looking information or statements. The effect of these factors is difficult to predict. Factors other than these also could adversely affect our results, and the reader should not consider these factors to be a complete set of all potential risks or uncertainties. New factors emerge from time to time, and management cannot assess the impact of any such factor on our business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements only speak as of the date of this document, and we undertake no obligation to update any forward-looking information or statements, whether written or oral, to reflect any change, except as required by law. All forward-looking statements attributable to us are expressly qualified by these cautionary statements.

3


About Santander Consumer USA Holdings Inc.
Santander Consumer USA Holdings Inc. (NYSE: SC) (SCUSA) is a full-service, technology-driven consumer finance company focused on vehicle finance and unsecured consumer lending products. The company, which began originating retail installment contracts in 1997, has a serviced finance portfolio of more than $41 billion (as of December�31, 2014), has more than two million customers across all credit grades, and is headquartered in Dallas. (www.santanderconsumerusa.com)

4


Santander Consumer USA Holdings Inc.
Unaudited Financial Supplement
Fourth Quarter 2014
�
�
�
Table of Contents
�
�
Table 1: Condensed Consolidated Balance Sheets
6

Table 2: Condensed Consolidated Statements of Income
7

Table 3: Other Financial Information
8

Table 4: Credit Quality
10

Table 5: Originations
11

Table 6: Asset Sales
12

Table 7: Ending Portfolio
13

Table 8: Reconciliation of Non-GAAP Measures
14


5


Table 1: Condensed Consolidated Balance Sheets
�
�
�
�
�

December�31,
2014

December�31,
2013
Assets
(Unaudited, Dollars in thousands)
Cash and cash equivalents
$
33,157


$
10,531

Receivables held for sale
46,585


82,503

Retail installment contracts held for investment, net
21,954,445


20,219,609

Unsecured consumer loans, net
1,779,777


954,189

Restricted cash
1,920,857


1,563,613

Receivables from dealers, held for investment, net
99,490


94,745

Accrued interest receivable
364,676


319,157

Leased vehicles, net
4,862,783


2,023,433

Furniture and equipment, net
41,218


25,712

Federal, state and other income taxes receivable
398,358


372,338

Deferred tax asset
32,801


197,041

Goodwill
74,056


74,056

Intangible assets
53,682


54,664

Capital lease receivables, net
81,839




Other assets
505,873


410,305

Total assets
$
32,249,597


$
26,401,896

�
�
�
�
Liabilities and Equity
�
�
�
Liabilities:
�

�
�����Notes payable  credit facilities
$
10,092,327


$
8,099,773

Notes payable  secured structured financings
17,718,974


15,195,887

�����Accrued interest payable
25,552


26,512

Accounts payable and accrued expenses
336,574


283,106

Federal, state and other income taxes payable
319


7,623

Deferred tax liabilities, net
399,724

�


Other liabilities
117,778


102,163

Total liabilities
28,691,248


23,715,064

�
�
�
�
Equity:
�

�
Common stock, $0.01 par value�
3,490


3,468

Additional paid-in capital
1,560,519


1,409,463

Accumulated other comprehensive income (loss)
3,553


(2,853
)
Retained earnings
1,990,787


1,276,754

Total stockholders equity
3,558,349


2,686,832

Total liabilities and equity
$
32,249,597


$
26,401,896


6


Table 2: Condensed Consolidated Statements of Income
�
�
For the Three Months Ended�
�December 31,
�
For the Year Ended�
�December 31,
�
2014
�
2013

2014
�
2013
�
(Unaudited, Dollars in thousands, except per share amounts)
Interest on finance receivables and loans
$
1,150,242

�
$
1,049,298

�
$
4,631,847

�
$
3,773,072

Leased vehicle income
300,536

�
94,810

�
929,745

�
154,939

Other finance and interest income
4,432

�
140

�
8,068

�
6,010

Total finance and other interest income
1,455,210

�
1,144,248

�
5,569,660

�
3,934,021

Interest expense
141,308

�
117,725

�
523,203

�
408,787

Leased vehicle expense
240,635

�
73,028

�
740,236

�
121,541

Net finance and other interest income
1,073,267

�
953,495

�
4,306,221

�
3,403,693

Provision for credit losses
559,524

�
629,162

�
2,616,943

�
1,852,967

Net finance and other interest income after provision for credit losses
513,743

�
324,333

�
1,689,278

�
1,550,726

Profit sharing
8,152

�
43,444

�
74,925

�
78,246

Net finance and other interest income after provision for credit losses and profit sharing
505,591

�
280,889

�
1,614,353

�
1,472,480

Investment gains, net
21,334

�
31,739

�
116,765

�
40,689

Servicing fee income
19,576

�
4,454

�
72,627

�
25,464

Fees, commissions, and other
92,546

�
66,495

�
368,279

�
245,413

Total other income
133,456

�
102,688

�
557,671

�
311,566

Salary and benefits expense
98,093

�
87,884

�
482,637

�
305,056

Repossession expense
56,200

�
44,312

�
201,017

�
147,543

Other operating costs
76,163

�
70,450

�
278,382

�
246,359

Total operating expenses
230,456

�
202,646

�
962,036

�
698,958

Income before income taxes
408,591

�
180,931

�
1,209,988

�
1,085,088

Income tax expense
161,558

�
67,005

�
443,639

�
389,418

Net income
247,033

�
113,926

�
766,349

�
695,670

Noncontrolling interests


�


�


�
1,821

Net income attributable to Santander Consumer USA Holdings Inc. shareholders
$
247,033

�
$
113,926

�
$
766,349

�
$
697,491

�
�
�
�
�
�
�
�
Net income per common share (basic)
$
0.71

�
$
0.33

�
$
2.20

�
$
2.01

Net income per common share (diluted)
$
0.69

�
$
0.33

�
$
2.15

�
$
2.01

Dividends declared per common share
$


�
$


�
$
0.15

�
$
0.84

Weighted average common shares (basic)
348,998,644

�
346,201,020

�
348,723,472

�
346,177,515

Weighted average common shares (diluted)
355,856,631

�
346,201,020

�
355,722,363

�
346,177,515






7


Table 3: Other Financial Information
�
�
�
For the Three Months Ended�
�December 31,
�
For the Year Ended�
�December 31,
�


2014
�
2013
�
2014
�
2013
Ratios
(Unaudited, Dollars in thousands)
�
Yield on individually acquired retail installment
contracts
16.7
%
�
17.0
%
�
17.3
%
�
17.8
%
�
Yield on purchased receivables portfolios
14.7
%
�
15.2
%
�
15.1
%
�
13.5
%
�
Yield on receivables from dealers
5.3
%
�
4.0
%
�
4.1
%
�
3.8
%
�
Yield on unsecured consumer loans
20.5
%
�
30.2
%
�
23.1
%
�
30.2
%
�
Yield on earning assets (1)
14.9
%
�
16.4
%
�
15.7
%
�
16.9
%
�
Cost of debt (2)
2.1
%
�
2.1
%
�
2.0
%
�
2.1
%
�
Net interest margin (3)
13.1
%
�
14.6
%
�
14.1
%
�
15.1
%
�
Efficiency ratio (4)
19.1
%
�
19.2
%
�
19.8
%
�
18.8
%
�
Return on average assets (5)
3.1
%
�
1.8
%
�
2.6
%
�
3.1
%
�
Return on average equity (6)
29.1
%
�
17.3
%
�
24.7
%
�
27.8
%
�
Net charge-off ratio on individually
acquired retail installment contracts (7)
8.1
%
�
8.2
%
�
6.9
%
�
5.9
%
�
Net charge-off ratio on purchased
receivables portfolios (7)
5.2
%
�
9.1
%
�
4.5
%
�
5.9
%
�
Net charge-off ratio on unsecured
consumer loans (7)
18.3
%
�
5.3
%
�
17.6
%
�
3.2
%
�
Net charge-off ratio (7)
8.6
%
�
8.1
%
�
7.3
%
�
5.8
%
�
Delinquency ratio on individually acquired retail installment contracts, end of period (8)
4.2
%
�
4.0
%
�
4.2
%
�
4.0
%
�
Delinquency ratio on unsecured consumer loans, end of period (8)
6.5
%
�
5.6
%
�
6.5
%
�
5.6
%
�
Delinquency ratio, end of period (8)
4.5
%
�
4.5
%
�
4.5
%
�
4.5
%
�
Tangible common equity to tangible assets (9)
10.7
%
�
9.7
%
�
10.7
%
�
9.7
%
�
Common stock dividend payout ratio (10)


�


�
6.8
%
�
41.6
%
�
Allowance to loans (11)
11.5
%
�
10.3
%
�
11.5
%
�
10.3
%
�
�
�
�
�
�
�
�
�
Other Financial Information
�
�
�
�
�
�
�
�
Charge-offs, net of recoveries, on�individually acquired retail installment ���contracts
$
492,434

�
$
432,244

�
$
1,617,351

�
$
1,074,144

�
Charge-offs, net of recoveries, on purchased
receivables portfolios
12,086

�
49,465

�
59,657

�
178,932

�
Charge-offs, net of recoveries, on unsecured
consumer loans
86,045

�
12,574

�
264,720

�
13,395

�
Charge-offs, net of recoveries, on capital leases
402

�


�
402

�


�
Total charge-offs, net of recoveries
$
590,967

�
$
494,283

�
$
1,942,130

�
$
1,266,471

�
End of period Individually acquired retail installment contracts Delinquent principal over 60 days
1,030,580

�
855,315

�
1,030,580

�
855,315

�
End of period Unsecured consumer loans Delinquent principal over 60 days
138,400

�
65,360

�
138,400

�
65,360

�
End of period Delinquent principal over 60 days
$
1,241,453

�
$
1,102,373

�
$
1,241,453

�
$
1,102,373

�
End of period assets covered by allowance for credit losses
26,875,389

�
22,499,895

�
26,875,389

�
22,499,895

�
End of period Gross finance receivables, loans and capital leases
27,721,744

�
24,542,911

�
27,721,744

�
24,542,911

�
End of period Gross finance receivables,
loans, and leases
33,226,211

�
26,822,857

�
33,226,211

�
26,822,857

�
Average Gross individually acquired retail
installment contracts
$
24,399,879

�
$
21,017,161

�
$
23,556,137

�
$
18,097,082

�
Average Gross purchased receivables portfolios
935,734

�
2,175,708

�
1,321,281

�
3,041,992

�
Average Gross receivables from dealers
99,363

�
176,235

�
118,358

�
173,506

�
Average Gross unsecured consumer loans
1,878,501

�
940,379

�
1,505,387

�
425,229

�
Average Gross capital leases
71,555

�


�
30,648

�


�
Average Gross finance receivables, loans and capital leases
$
27,385,032

�
$
24,309,483

�
$
26,531,811

�
$
21,737,809

�
Average Gross finance receivables, loans,
and leases
$
32,650,643

�
$
26,148,796

�
$
30,642,923

�
$
22,499,225


8


�
Average Total assets
$
31,491,655

�
$
25,931,737

�
$
29,773,632

�
$
22,558,567

�
Average Debt
$
27,429,389

�
$
22,913,106

�
$
26,158,708

�
$
19,675,851

�
Average Total equity
$
3,399,942

�
$
2,629,036

�
$
3,097,915

�
$
2,498,831



(1)
Yield on earning assets is defined as the ratio of Total finance and other interest income, net of Leased vehicle expense, to Average gross finance receivables, loans and leases
(2)
Cost of debt is defined as the ratio of Interest expense to Average debt
(3)
Net interest margin is defined as the ratio of Net finance and other interest income to Average gross finance receivables, loans and leases
(4)
Efficiency ratio is defined as the ratio of Operating expenses to the sum of Net finance and other interest income and Other income
(5)
Return on average assets is defined as the ratio of Net income to Average total assets
(6)
Return on average equity is defined as the ratio of Net income to Average total equity
(7)
Net charge-off ratio is defined as the ratio of Charge-offs, net of recoveries, to average balance of the respective portfolio
(8)
Delinquency ratio is defined as the ratio of End of period Delinquent principal over 60 days to balance of respective portfolio
(9)
Tangible common equity to tangible assets" is defined as the ratio of Total equity, excluding Goodwill and intangible assets, to Total assets, excluding Goodwill and intangible assets (for a reconciliation from GAAP to this non-GAAP measure, see Reconciliation of Non-GAAP Measures on Page 14 of this release)
(10)
Common stock dividend payout ratio is defined as the ratio of Dividends declared per share of common stock to Earnings per share attributable to Santander Consumer USA Holdings Inc. shareholders
(11)
Allowance to loans is defined as the ratio of Allowance for credit losses to End of period assets covered by allowance for credit losses










9


Table 4: Credit Quality

Amounts for the quarter ended December 31, 2014 are as follows:
(in thousands)
�
Retail Installment
Contracts
Acquired
Individually
�
�
�
Unsecured Consumer Loans
�
�
Loan loss allowance��beginning of period
$
2,793,199

�
�
�
$
300,425

�
�
Provision for loan losses
425,573

�
�
�
134,280

�
�
Charge-offs
(955,372
)
�
�
�
(91,905
)
�
�
Recoveries
462,938

�
�
�
5,860

�
�
Loan loss allowance��end of period
$
2,726,338

�
�
�
$
348,660

�
�
�
�
�
�
�
�
�
�
Net charge-offs
$
492,434

�
�
�
$
86,045

�
�
Average unpaid principal balance (UPB)
24,399,879

�
�
�
1,878,501

�
�
Charge-off ratio
8.1
%
�
�
�
18.3
%
�
�


Amounts as of and for the year ended December 31, 2014 are as follows:
(in thousands)
�
Retail Installment
Contracts
Acquired
Individually
�
�
�
Unsecured Consumer Loans
�
�
Loan loss allowance��beginning of year
$
2,132,634

�
�
�
$
179,350

�
�
Provision for loan losses
2,211,055

�
�
�
434,030

�
�
Charge-offs
(3,341,047
)
�
�
�
(286,331
)
�
�
Recoveries
1,723,696

�
�
�
21,611

�
�
Loan loss allowance��end of year
$
2,726,338

�
�
�
$
348,660

�
�
�
�
�
�
�
�
�
�
UPB
$
24,555,106

�
�
�
$
2,128,769

�
�
Loan loss allowance as a percentage of UPB
11.1
%
�
�
�
16.4
%
�
�
�
�
�
�
�
�
�
�
Net charge-offs
$
1,617,351

�
�
�
$
264,720

�
�
Average UPB
23,556,137

�
�
�
1,505,387

�
�
Charge-off ratio
6.9
%
�
�
�
17.6
%
�
�
�
�
�
�
�
�
�
�
�
Retail Installment Contracts
Acquired Individually
�
Unsecured
Consumer
Loans
Principal, 31-60 days past due
$
2,450,837

�
10.0
%
�
$
52,452

�
2.5
%
Delinquent principal over 60 days
1,030,580

�
4.2
%
�
138,400

�
6.5
%
Total delinquent principal
$
3,481,417

�
14.2
%
�
$
190,852

�
9.0
%


10


Table 5: Originations
�
Three Months Ended
�
Year Ended
�
December�31, 2014
�
December�31, 2013
�
September 30,
2014
�
December�31, 2014
�
December�31, 2013
Retained Originations
(Dollars in thousands)
�
(Dollars in thousands)
Retail installment contracts
$
3,220,019

�
$
3,318,249

�
$
3,497,949

�
$
13,531,801

�
$
14,035,221

Average APR
14.2
%
�
15.3
%
�
15.0
%
�
15.6
%
�
16.4
%
Discount
1.0
%
�
3.1
%
�
3.7
%
�
3.4
%
�
3.5
%
�
�
�
�
�
�
�
�
�
�
Unsecured consumer loans
$
562,178

�
$
516,431

�
$
249,474

�
$
1,182,171

�
$
1,181,597

Average APR
20.5
%
�
24.0
%
�
21.6
%
�
20.1
%
�
23.3
%
Discount


�


�


�


�
5.0
%
�
�
�
�
�
�
�
�
�
�
Receivables from dealers
$


�
$
39,602

�
$
1,609

�
$
25,515

�
$
167,449

Average APR


�
2.6
%
�
3.5
%
�
4.1
%
�
3.7
%
Discount


�


�


�


�


�
�
�
�
�
�
�
�
�
�
Leased vehicles
$
721,932

�
$
1,001,277

�
$
1,267,291

�
$
4,111,146

�
$
2,420,882

�
�
�
�
�
�
�
�
�
�
Capital lease receivables
$
42,368

�
$


�
$
31,503

�
$
93,444

�
$


Total originations retained
$
4,546,497

�
$
4,875,559

�
$
5,047,826

�
$
18,944,077

�
$
17,805,149

�
�
�
�
�
�
�
�
�
�
Sold Originations
�
�
�
�
�
�
�
�
�
Retail installment contracts
$
1,016,165

�
$
693,712

�
$
1,707,984

�
$
6,049,653

�
$
2,516,133

Average APR
4.1
%
�
4.4
%
�
4.8
%
�
4.8
%
�
5.2
%
�
�
�
�
�
�
�
�
�
�
Receivables from dealers
$


�
$


�
$


�
$
8,724

�
$
222,384

Average APR


�


�


�
5.3
%
�
2.9
%
�
�
�
�
�
�
�
�
�
�
Leased vehicles
$


�
$


�
$


�
$
369,114

�
$


Total originations sold
$
1,016,165

�
$
693,712

�
$
1,707,984

�
$
6,427,491

�
$
2,738,517

�
�
�
�
�
�
�
�
�
�
Total SCUSA originations
$
5,562,662

�
$
5,569,271

�
$
6,755,810

�
$
25,371,568

�
$
20,543,666

�
�
�
�
�
�
�
�
�
�
Facilitated Originations
�
�
�
�
�
�
�
�
�
Receivables from dealers
$


�
$
185,344

�
$
139,408

�
$
392,920

�
$
202,494

Leased vehicles
564,875

�


�
464,523

�
1,761,512

�


Total originations facilitated for affiliates
$
564,875

�
$
185,344

�
$
603,931

�
$
2,154,432

�
$
202,494

�
�
�
�
�
�
�
�
�
�
Total originations
$
6,127,537

�
$
5,754,615

�
$
7,359,741

�
$
27,526,000

�
$
20,746,160















11


Table 6: Asset Sales

Asset sales may include assets originated in prior periods.
�
Three Months Ended
�
Year Ended
�
December�31, 2014
�
December�31, 2013
�
September 30,
2014
�
December�31, 2014
�
December�31, 2013
�
(Dollars in thousands)
�
(Dollars in thousands)
Asset Sales
�
�
�
�
�
�
�
�
�
Retail installment contracts
$
1,137,471

�
$
1,608,282

�
$
2,413,251

�
$
6,620,620

�
$
2,505,442

Average APR
4.1
%
�
4.4
%
�
4.8
%
�
4.8
%
�
5.2
%
�
�
�
�
�
�
�
�
�
�
Receivables from dealers
$


�
$
17,602

�
$
18,227

�
$
18,227

�
$
222,384

Average APR


�


�
4.7
%
�
4.7
%
�
5.3
%
�
�
�
�
�
�
�
�
�
�
Leased vehicles
$


�
$


�
$


�
$
369,114

�
$


Total asset sales
$
1,137,471

�
$
1,625,884

�
$
2,431,478

�
$
7,007,961

�
$
2,727,826








�







12


Table 7: Ending Portfolio

Ending held for investment portfolio, average APR and remaining unaccreted discount as of December 31, 2014 and 2013 are as follows:
�
December�31, 2014
�
December�31, 2013
�
(Dollars in thousands)
Retail installment contracts
$
25,401,461

�
$
23,199,341

Average APR
16.0
%
�
16.3
%
Discount
2.1
%
�
2.8
%
�
�
�
�
Unsecured consumer loans
$
2,128,769

�
$
1,165,778

Average APR
23.1
%
�
24.0
%
Discount


�
2.8
%
�
�
�
�
Receivables from dealers
$
100,164

�
$
95,835

Average APR
4.3
%
�
4.9
%
Discount


�




13


Table 8: Reconciliation of Non-GAAP Measures

(Dollars in thousands, except per share data)
�
For the Year Ended
�
�
�
�
December 31, 2014
�
�
Net income
�
$
766,349

�
�
Add back:
�
�
�
�
Stock compensation recognized upon IPO, net of tax
�
74,428

�
�
Other IPO-related expenses, net of tax
�
1,409

�
�
Core net income
�
$
842,186

�
�
�
�
�
�
�
Weighted average common shares (diluted)
�
355,722,363

�
�
Net income per common share (diluted)
�
$
2.15

�
�
Core net income per common share (diluted)
�
$
2.37

�
�
�
�
�
�
�
�
�
December 31, 2014
�
December 31, 2013
Total equity
�
$
3,558,349

�
$
2,686,832

��Deduct: Goodwill and intangibles
�
127,738

�
128,720

Tangible common equity
�
$
3,430,611

�
$
2,558,112

�
�
�
�
�
Total assets
�
$
32,249,597

�
$
26,401,896

��Deduct: Goodwill and intangibles
�
127,738

�
128,720

Tangible assets
�
$
32,121,859

�
$
26,273,176

�
�
�
�
�
Equity to assets ratio
�
11.0
%
�
10.2
%
Tangible common equity to tangible assets
�
10.7
%
�
9.7
%



14
Santander Consumer USA Holdings Inc. 4Q14 Company Update

�
IMPORTANT INFORMATION 2 Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions, or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as anticipates, believes, can, could, may, predicts, potential, should, will, estimates, plans, projects, continuing, ongoing, expects, intends, and similar words or phrases. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements are not guarantees of future performance and involve risks and uncertainties which are subject to change based on various important factors, some of which are beyond our control. For additional discussion of these risks, refer to the section entitled Risk Factors and elsewhere in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q filed by us with the SEC. Among the factors that could cause our financial performance to differ materially from that suggested by the forward-looking statements are: (a) we operate in a highly regulated industry and continually changing federal, state, and local laws and regulations could materially adversely affect our business; (b) adverse economic conditions in the United States and worldwide may negatively impact our results; (c) our business could suffer if our access to funding is reduced; (d) we face significant risks implementing our growth strategy, some of which are outside our control; (e) our agreement with Chrysler may not result in currently anticipated levels of growth and is subject to certain performance conditions that could result in termination of the agreement; (f) our business could suffer if we are unsuccessful in developing and maintaining relationships with automobile dealerships; (g) our financial condition, liquidity, and results of operations depend on the credit performance of our loans; (h) loss of our key management or other personnel, or an inability to attract such management and personnel, could negatively impact our business; (i) we are subject to certain regulations, including oversight by the Office of the Comptroller of the Currency, the CFPB, the Bank of Spain, and the Federal Reserve, which oversight and regulation may limit certain of our activities, including the timing and amount of dividends and other limitations on our business; and (j) future changes in our relationship with Santander could adversely affect our operations. If one or more of the factors affecting our forward-looking information and statements proves incorrect, our actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements. Therefore, we caution not to place undue reliance on any forward-looking information or statements. The effect of these factors is difficult to predict. Factors other than these also could adversely affect our results, and the reader should not consider these factors to be a complete set of all potential risks or uncertainties. New factors emerge from time to time, and management cannot assess the impact of any such factor on our business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements only speak as of the date of this document, and we undertake no obligation to update any forward-looking information or statements, whether written or oral, to reflect any change, except as required by law. All forward-looking statements attributable to us are expressly qualified by these cautionary statements.

�
AGENDA Highlights Strategy and Business Appendix: Financial and Supplemental Information Results 3

�
4Q14: HIGHLIGHTS � Fourth quarter net income of $247.0 million1, or $0.69 per diluted common share, up 117% from prior year fourth quarter � Net income1 for fourth quarter 2013 of $113.9 million, or $0.33 per diluted common share � Fourth quarter ROE and ROA of 29.1% and 3.1%, respectively � Fourth quarter 2013 ROE and ROA of 17.3% and 1.8%, respectively � Strong capital base; TCE/TA2 of 10.7%, up 9.7% from prior year � Current portfolio performance consistent with retained mix and typical seasonal patterns of deterioration in the second half of the year � Net charge-off ratio of 8.6%, seasonally up from 8.4% in prior quarter and up from 8.1% in prior year fourth quarter � Allowance to loans ratio decreased to 11.5% from 12.1% quarter-over- quarter, primarily driven by positive model impacts and a decrease in months coverage versus prior quarter3 Robust Financial Performance Stable Credit Performance 1 GAAP Net income attributable to SCUSA shareholders 2 See reconciliation on slide 26 3Allowance to loan ratios exclude impairment on purchased receivables portfolio 4Net bonds sold of $941 million ($ in millions) � Platform more than doubled this year to $10.3 billion at December 31, 2014 from $4.5 billion at the end of 2013 � Fourth quarter servicing fee income of $20 million, up from $4 million in the prior year fourth quarter � Remain focused on this capital-light, higher ROE strategy in 2015 � Leverages servicing and compliance expertise � Total originations and sales of $6.1 billion and $1.1 billion, respectively � In Q4, $1 billion4 transaction from the core nonprime platform, SDART � $1.2 billion in new capacity in amortizing and warehouse facilities � Chrysler Capital penetration rate of 27% at the end of Q4; remain confident about ongoing success of Chrysler agreement � Net unsecured consumer loans of $1.8 billion, up from $1.3 billion in prior quarter and $954 million in prior year fourth quarter � Focused on balance sheet management and risk-adjusted returns, accretive to long-term earnings � Leveraging history of big bank ownership and compliance culture � Enhanced regulatory environment creating barrier to entry that benefits stronger industry players � Resources committed to CCAR infrastructure � Established formal regulatory liaison team Quality Originations & Capital Markets Expertise Sound Risk Management & Compliance Serviced for Others Platform � Scorecard implemented utilizing call monitoring system, Call Miner, to provide associate ratings via voice-to-text software for Right-Party Contact (RPC) and messages left � Grades associates on quality of the call or message left � Implemented lease end-of-term process Enhanced Technology & Operations 4

�
4Q14: PERFORMANCE 1 As defined in public filings Three Months Ended December 31, 2014 September 30, 2014 June 30, 2014 March 31, 2014 December 31, 2013 Yield on Earning Assets1 (%) 14.9% 15.7% 16.0% 16.6% 16.4% Cost of Debt (%) 2.1% 1.9% 2.0% 2.0% 2.1% Net Interest Margin1 (%) 13.1% 14.1% 14.3% 14.8% 14.6% Efficiency Ratio1 (%) 19.1% 16.0% 17.4% 16.9%2 19.2% Net Charge-off Ratio (%) 8.6% 8.4% 5.8% 6.4% 8.1% Return on Average Assets (%) 3.1% 2.5% 3.4% 2.3%2 1.8% Return on Average Equity (%) 29.1% 23.9% 33.0% 22.4%2 17.3% Diluted EPS ($) $0.69 $0.54 $0.69 $0.442 $0.33 Key Metrics & Ratios End of Period December 31, 2014 September 30, 2014 June 30, 2014 March 31, 2014 December 31, 2013 Delinquency Ratio (%) 4.5% 4.1% 3.8% 3.1% 4.5% Loan Loss Allowance to Loans (%)3 11.5% 12.1% 11.4% 11.0% 10.3% Tangible Common Equity to Tangible Assets4 (%) 10.7% 10.4% 10.0% 9.7% 9.7% 5 2 Q1 2014 adjusted for $75.8 million non-recurring stock compensation and other IPO-related expenses; reconciliation on slide 26 3 Excludes impairment on purchased receivables portfolios 4 Non-GAAP measure; see reconciliation on slide 26

�
AGENDA Highlights Strategy and Business Appendix: Financial and Supplemental Information Results 6

�
SCUSA OVERVIEW � Santander Consumer USA Holdings Inc. (NYSE: SC) (SCUSA) is approximately 60.5 percent owned by Santander Holdings USA, Inc., a wholly-owned subsidiary of Banco Santander, S.A. (NYSE: SAN)1 � SCUSA is a full-service, technology-driven consumer finance company focused on vehicle and unsecured consumer lending and third-party servicing � Historically focused on nonprime markets; established and continued presence in prime and lease � Approximately 4,400 employees and approximately 800 vendor-based employees across multiple locations in the U.S. and the Caribbean 1 As of December 31, 2014 2 Chrysler Capital is a dba of SCUSA � Our strategy is to continue to leverage our efficient, scalable infrastructure and data to underwrite, originate and service consumer assets while controlling balance sheet growth � Focus on optimizing the mix of retained assets vs. assets sold and serviced for others � Continued presence in prime markets through Chrysler Capital2 and in unsecured consumer lending � Efficient funding through third parties and Santander Strategy SCUSAs fundamentals are strong, and the company is focused on maintaining disciplined underwriting standards to deliver strong returns, robust profitability and value to its shareholders 7

�
SCUSA TODAY � Originate and refinance loans via SCUSAs branded tech-enabled platform, RoadLoans.com � Active relationships with more than 17,000 franchised automotive dealers throughout the United States � Originate loans through select independent dealers and OEMs, primarily Chrysler, and leases through Chrysler Direct Auto Finance Indirect Auto Finance and OEM Relationships Vehicle Finance � Finance third-party receivables for consumer installment products � Leverage relationship with a lending technology company that enables SCUSA to facilitate private-label credit cards to underserved markets, via retailers � Finance third-party receivables for revolving consumer products Installment Revolving Unsecured Consumer Lending � Proprietary systems leverage SCUSAs knowledge of consumer behavior across the full credit spectrum, and enable the company to effectively price, manage and monitor risk � Scalability evidenced by acquisitions and/or conversions and originations of more than $104 billion of assets since 2008 � Capital-light, higher ROE serviced for others platform Origination & Servicing Platforms 8

�
Chrysler Capital Overview Chrysler Relationship Highlights � 10-year private-label agreement, effective May 1, 2013 � 2,600 dealerships in the U.S.1 � Products include: Retail loans, lease and dealer lending � Chrysler subvention dollars enhance access to prime and nonprime customers � Ability to sell higher quality loans with lower margins and retain servicing increases servicing revenue � Residual risk-sharing agreement with Chrysler for leases 1 Source: Chrysler Company filings and Ward Automotive Reports as published by the U.S. Department of Commerce, Bureau of Economic Analysis 2 Automotive News 3 As of December 31, 2014 The optimal success, per the terms of the agreement between Chrysler and SCUSA, is dependent upon the ability of both parties to meet and uphold certain agreed-upon standards defined in the agreement Chrysler treats SCUSA in a manner consistent with comparable OEMs treatment of their captive finance providers SCUSA meets penetration and approval rate targets and maintains service-level standards Since its May 1, 2013 launch, Chrysler Capital has originated approximately $19.1 billion in retail loans and $6.8 billion in leases, and facilitated the origination of more than $2.4 billion in leases and dealer loans for an affiliate3 1.1 1.4 1.7 1.8 2010 2011 2012 2013 2014 Chrysler Sales 14% CAGR 2.1 CHRYSLER CAPITAL 9 2

�
88% 86% 86% 80% 72% 63% 62% 12% 14% 14% 20% 28% 37% 38% 43.1% 46.1% 45.1% 42.7% 39.7% 33.2% 30.2% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% $0 $500 $1,000 $1,500 $2,000 $2,500 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Gross Outstanding Balances ($ in billions) Revolving Installment Total Adjusted Yield (Right Axis) � Total adjusted yield2 decreased due to mix shift Q414 Revolving Wtd. Avg. FICO = 5851 1 FICO used is origination FICO from time of application. 2 Defined as unsecured Interest Income and Fees, Commissions, Other to Average gross finance receivables � 2013 revolving growth fueled by purchase of existing mature revolving receivables Q414 Installment Wtd. Avg. FICO = 680 2 FICO Revolving 602 601 598 596 592 589 585 Installment 699 689 682 678 679 678 680 10 CONTINUED UNSECURED PRESENCE $0.4 $0.7 $1.2 $1.2 $1.4 $1.6 $2.1

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KEY COMPLIANCE PROGRAM ELEMENTS 11 Program leverages history of big bank ownership and compliance culture � CEO tone from the top � Bank-affiliated for 14 years � Three lines of defense � Compliance involved at all levels Compliance Culture � Committee structures in place � Integrated into Risk Framework Governance � Expanded Regulatory Liaison team Compliance Staffing � Updated annually and located in centralized intranet for ease of associate access Policies and Procedures � Compliance monitoring and testing based on Comprehensive Risk Assessments Monitoring and Testing � Escalated complaint process � Expansion of vendor oversight Complaints � Mandatory annual regulatory training delivered to all associates, management and the Board Training

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AGENDA Highlights Strategy and Business Appendix: Financial and Supplemental Information Results 12

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$25,491,976 $30,112,428 $30,985,309 $4,536,906 $10,248,185 $10,259,152 December 31, 2013 September 30, 2014 December 31, 2014 Owned and Serviced Serviced for Others Total Serviced Portfolio 1 (in thousands) ORIGINATION TRENDS SCUSA continued to produce healthy origination volumes during the fourth quarter, originating or facilitating the origination of $6.1 billion in loans and leases Originations (in thousands) SCUSA retains servicing on loans sold to third parties and affiliates or facilitated for affiliates, through bulk sales, flow programs and securitizations4 $40,360,613 1 Unpaid principal balance; does not include loans owned by SCUSA serviced by others 2 Excludes originations facilitated for an affiliate 3 Includes capital leases 4 Securitizations sold through the residual are accounted for as sales 37% $41,244,461 $30,028,882 13 Three Months Ended December 31, 2013 September 30, 2014 December 31, 2014 SCUSA VOLUME Retail Installment Contracts $4,011,961 $5,205,933 $4,236,184 Unsecured Consumer Loans $516,431 $249,474 $562,178 Receivables from Dealers $39,6022 $1,6092 - Leases3 $1,001,277 $1,298,794 $764,300 Subtotal - SCUSA $5,569,271 $6,755,810 $5,562,662 Originations for an affiliate $185,344 $603,931 $564,875 Total Originations $5,754,615 $7,359,741 $6,127,537

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$26,402 $28,796 $29,732 $30,641 $32,250 $203 $199 $211 $202 $230 19.2% 16.9% 17.4% 16.0% 19.1% Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Total Assets Operating Expenses Efficiency Ratio 1 $120 $319 1 INCOME & OPERATING EXPENSES Highlights � In an environment of continued competition and increased expenses, SCUSA continues to produce steady returns, with fourth quarter 2014 net income2 of $247.0 million, up 117 percent year-over-year � Fourth quarter net finance and other interest income increased $119.8 million, or 13 percent, from fourth quarter 2013, driven by the 25 percent year-over-year increase in the average portfolio � SCUSA continues to demonstrate industry-leading efficiency, evidencing continued ability to scale despite increases in regulatory and compliance costs 1 Q1 2014 core net income and operating expenses adjusted for $119.8 pre-tax ($75.8 after-tax) million non-recurring stock compensation and other IPO-related expenses; reconciliation on slide 26 2 GAAP net income attributable to SCUSA shareholders Income ($ in millions) $953 $1,043 $1,076 $1,114 $1,073 $114 $246 $191 $247 14.6% 14.8% 14.3% 14.1% 13.1% Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Net Finance and Other Interest Income Net Income Net Interest Margin $76 $81 $157 1 14 Expenses and Efficiency Ratio ($ in millions)

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� Quarter-over quarter 31-60 and 61+ delinquency ratios increased seasonally, and remain in line with delinquency trends year-over-year � Consistent with expected seasonal patterns and portfolio mix, the net charge-off ratio in the fourth quarter increased slightly from the previous quarter � Provision expense decreased quarter-over-quarter mainly due to positive model impacts and a decrease in months coverage � Partially offset by expected seasonal patterns in charge-offs as performance deteriorates in the fourth quarter $629 $699 $589 $770 $560 $494 $407 $379 $565 $591 8.1% 6.4% 5.8% 8.4% 8.6% Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Provision Expense Net Charge-offs Net Charge-off Ratio CREDIT ($ in millions) Highlights Delinquency Trends 8.5% 5.9% 7.8% 8.5% 9.0% 4.5% 3.1% 3.8% 4.1% 4.5% Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 31-60 Day Delinquency 61+ Day Delinquency Provision Expense and Net Charge-offs 15

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4.8 3.7 11.8 6.4 6.3 6.3 11.4 11.4 Santander and Related Subsidiaries Third-Party Revolving Privately Issued Amortizing Notes Public Securitizations FUNDING AND LIQUIDITY Funding Sources Highlights 16 4.8 3.4 11.3 5.0 6.3 6.3 12.1 12.1 Committed Amount Utilized Balance Committed Amount Utilized Balance September 30, 2014 December 31, 2014 $34.3 $27.8 Abundant liquidity in current market ($ in billions) $34.5 $26.8 � SCUSA has flow and origination agreements in place related to the sale of Chrysler Capital retail and lease assets � Active securitization program, including sale of selected residuals � Fourteen external lenders in committed third-party facilities as of December � During the fourth quarter, SCUSA continued to demonstrate consistent access to liquidity with the execution of a $1 billion securitization from SDART1, a $700 million increased capacity in private term amortizing facilities and an additional $500 million in warehouse borrowing capacity 1 Net bonds sold of $941 million

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End of Period December 31, 2014 September 30, 2014 June 30, 2014 March 31, 2014 December 31, 2013 Tier 1 Leverage 10.3% 9.5% 9.0% 8.8% 8.7% Tier 1 Risk-Based 10.0% 9.4% 8.8% 8.4% 8.4% Total Risk-Based 11.4% 10.8% 10.2% 9.8% 9.8% TCE/TA Ratio1 10.7% 10.4% 10.0% 9.7% 9.7% SCUSA continues to produce positive trends in capital, driven by strong profitability Capital Ratios 1 Non-GAAP measure; reconciliation on slide 26 2 Equity capital less accumulated gains (losses) on cash flow hedges less Goodwill & intangibles less Deferred tax assets 3 Risk-weighted Assets: Balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet items which are allocated to various risk-weighting categories based on the FRB risk-based capital guidelines 4 Tier 1 Capital plus Tier 2 includes Allowance for loan losses (the minimum of the current ALLL or 1.25% of risk weighted assets) Regulatory Calculations � Tier 1 leverage ratio is the ratio of Tier 1 capital2 to average total assets � Tier 1 risk-based ratio is the ratio of Tier 1 capital2 to risk-weighted assets3 � Total risk-based ratio is the ratio of total capital (Tier 12 plus Tier 24) to risk-weighted assets3 Internal SCUSA Measure � TCE/TA ratio is the ratio of tangible common equity to tangible assets 17 CAPITAL

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AGENDA Highlights Strategy and Business Appendix: Financial and Supplemental Information Results 18

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LOAN LOSS ALLOWANCE  Q4 2014 19 1 Quarter-end balance of loans originated during the quarter; the initial coverage for new loans is lower than the overall portfolio as the loans have not yet seasoned and developed delinquency 2 Includes performing loan paydowns, which may not significantly alter future unit loss forecast Q4 Allowance Walk EOP Gross Unpaid Principal Balance % UPB Allowance Coverage Beginning of Period Q4 25,680.3 3,100.4 12.1% Plus: Purchased receivables portfolios Beginning of Period Q4 1,032.8 193.0 18.7% Total Company excluding Operating Lease Beginning of Period Q4 26,713.1 100.0% 3,293.4 12.3% Individually acquired retail installment contracts Beginning of Period Q4 23,890.5 89.4% 2,793.2 11.7% New Originations in Q4 , net of sales1 3,138.7 218.2 7.0% Net Liquidations2 (2,474.1) (154.3) 6.2% Seasonality, Performance, & Model Inputs Other  (130.8) End of Period Q4 24,555.1 88.6% 2,726.3 11.1% Purchased receivables portfolios Beginning of Period Q4 1,032.8 3.9% 193.0 18.7% End of Period Q4 846.4 3.1% 188.6 22.3% Receivables from dealers Beginning of Period Q4 97.8 0.4% 0.6 0.6% End of Period Q4 100.2 0.4% 0.7 0.7% Unsecured consumer loans Beginning of Period Q4 1,640.3 6.1% 300.4 18.3% End of Period Q4 2,128.8 7.7% 348.7 16.4% Capital leases Beginning of Period Q4 51.7 0.2% 6.1 11.8% End of Period Q4 91.3 0.3% 9.6 10.5% Total Company excluding Operating Lease End of Period Q4 27,721.8 100.0% 3,273.9 11.8% Less: Purchased receivables portfolios End of Period Q4 (846.4) (188.6) 22.3% End of Period Q4 26,875.4 3,085.3 11.5% Total Company excluding Operating Lease & Purchased receivables portfolios Total Company excluding Operating Lease & Purchased receivables portfolios

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COMPANY ORGANIZATION 20 Banco Santander, S.A. Spain dba Chrysler Capital Other Subsidiaries Centerbridge Other Subsidiaries Santander Holdings USA, Inc. (f/k/a Sovereign Bancorp Inc.) Santander Bank N.A. (f/k/a Sovereign Bank) Sponsor Auto Finance Holdings Series LP DDFS LLC (Tom Dundon) Santander Consumer USA Holdings Inc. (SCUSA) Public Shareholders Other Management 100% Ownership 60.5% Ownership **Ownership percentages are approximates as of December 31, 2014 1 Beneficial Ownership includes options currently exercisable or exercisable within 60 days of December 31, 2014 0.3% Ownership 29.1% Ownership 10.0% Ownership (13.3% Beneficial Ownership) 1 0.1% Ownership (0.6% Beneficial Ownership) 1

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16.8 AVERAGE, 13.50 HIGH, 17.45 LOW, 9.04 6 8 10 12 14 16 18 20 AVERAGE, 72.76 HIGH, 93.60 93.60 LOW, 55.30 40 50 60 70 80 90 100 ECONOMIC INDICATORS Consumer Sentiment Index Motor Vehicle Sales � Motor vehicle sales hit Econodays consensus estimate for a 16.8 million annual rate � Consumer sentiment is moving steadily to new recovery highs (units in millions) 21 Source: Bloomberg 12/31/2014 Source: Bloomberg 12/31/2014

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CONSUMER FINANCE ENVIRONMENT 22 1 Manheim, Inc.; Indexed to a basis of 100 at 1995 levels 2 On a mix-, mileage-, and seasonally-adjusted basis 3 Standard & Poors Ratings Services (ABS Auto Trust Data  two month lag on data) � Wholesale used vehicle prices2 increased for the third consecutive month in December � Year-over-year, the Manheim Index is up 1.8% � SCUSA recovery rates in the fourth quarter declined slightly, mainly due to seasonality 60+ Day Delinquency Rates3 Net Loss Rates3 Manheim Index1 123.9 110 115 120 125 130 135 Source: Manheim Index 12/2014 0 2 4 6 8 10 12 14 0 0.5 1 1.5 2 2.5 Prime % (Left Scale) Nonprime % (Right Scale) 0 1 2 3 4 5 6 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 Prime % (Left Scale) Nonprime % (Right Scale)

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CREDIT PROFILES 26.8% 31.8% 26.3% 15.1% 27.0% 32.2% 26.1% 14.6% 26.7% 32.3% 26.5% 14.5% 26.9% 33.2% 26.5% 13.4% 26.4% 32.6% 26.4% 14.6% 0% 10% 20% 30% 40% <540 540-599 600-659 >660 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Retail Installment Contracts1 FICO Bands Unsecured Consumer Loans 6.3% 24.2% 39.4% 30.1% 3.5% 27.6% 43.9% 25.0% 10.0% 21.3% 40.9% 27.8% 3.2% 20.7% 35.6% 40.5% 3.3% 20.1% 34.3% 42.4% 0% 10% 20% 30% 40% 50% <540 540-599 600-659 >660 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 FICO Bands 1 Held for investment; excludes prime assets held for sale ($45.4 million retail installment contracts held for sale as of December 31, 2014) 23

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CONSOLIDATED BALANCE SHEET (Unaudited, Dollars in thousands) December 31, 2014 September 30, 2014 December 31, 2013 Assets Cash and cash equivalents $ 33,157 $ 43,889 $ 10,531 Receivables held for sale 46,585 91,153 82,503 Retail installment contracts held for investment, net 21,954,445 21,319,080 20,219,609 Unsecured consumer loans, net 1,779,777 1,340,283 954,189 Restricted cash 1,920,857 1,989,434 1,563,613 Receivables from dealers held for investment 99,490 97,178 94,745 Accrued interest receivable 364,676 352,473 319,157 Leased vehicles, net 4,862,783 4,414,008 2,023,433 Furniture and equipment, net of accumulated depreciation 41,218 29,274 25,712 Federal, state and other income taxes receivable 398,358 119,397 372,338 Deferred tax asset 32,801 143,524 197,041 Goodwill 74,056 74,056 74,056 Intangible assets 53,682 53,935 54,664 Capital lease receivables, net 81,839 45,588 - Other assets 505,873 528,020 410,305 Total assets $ 32,249,597 $ 30,641,292 $ 26,401,896 Liabilities and Equity Liabilities: Notes payable  credit facilities $ 10,092,327 $ 8,390,080 $ 8,099,773 Notes payable  secured structured financings 17,718,974 18,444,397 15,195,887 Accrued interest payable 25,552 25,777 26,512 Accounts payable and accrued expenses 336,574 304,578 283,106 Federal, state and other income taxes payable 319 91,460 7,623 Deferred tax liabilities, net 399,724 - - Other liabilities 117,778 81,787 102,163 Total liabilities 28,691,248 27,338,079 23,715,064 Equity: Common stock, $0.01 par value 3,490 3,490 3,468 Additional paid-in capital 1,560,519 1,551,413 1,409,463 Accumulated other comprehensive income (loss) 3,553 4,556 (2,853) Retained earnings 1,990,787 1,743,754 1,276,754 Total stockholders' equity 3,558,349 3,303,213 2,686,832 Total liabilities and equity $ 32,249,597 $ 30,641,292 $ 26,401,896 24

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CONSOLIDATED INCOME STATEMENT For the Three Months Ended (Unaudited, Dollars in thousands, except per share amounts) December 31, 2014 September 30, 2014 December 31, 2013 Interest on finance receivables and loans $ 1,150,242 $ 1,177,828 $ 1,049,298 Leased vehicle income 300,536 263,148 94,810 Other finance and interest income 4,432 2,512 140 Total finance and other interest income 1,455,210 1,443,488 1,144,248 Interest expense 141,308 129,135 117,725 Leased vehicle expense 240,635 200,397 73,028 Net finance and other interest income 1,073,267 1,113,956 953,495 Provision for credit losses 559,524 769,689 629,162 Net finance and other interest income after provision for credit losses 513,743 344,267 324,333 Profit sharing 8,152 10,556 43,444 Net finance and other interest income after provision for credit losses and profit sharing 505,591 333,711 280,889 Investment gains, net 21,334 38,015 31,739 Servicing fee income 19,576 20,547 4,454 Fees, commissions, and other 92,546 91,399 66,495 Total other income 133,456 149,961 102,688 Salary and benefits expense 98,093 88,940 87,884 Repossession expense 56,200 50,738 44,312 Other operating costs 76,163 62,228 70,450 Total operating expenses 230,456 201,906 202,646 Income before income taxes 408,591 281,766 180,931 Income tax expense 161,558 90,397 67,005 Net income $ 247,033 $ 191,369 $ 113,926 Net income per common share (basic) $ 0.71 $ 0.55 $ 0.33 Net income per common share (diluted) $ 0.69 $ 0.54 $ 0.33 Weighted average common shares (basic) 348,998,644 348,955,505 346,201,020 Weighted average common shares (diluted) 355,856,631 355,921,570 346,201,020 25

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RECONCILIATION OF NON-GAAP MEASURES � Core performance 26 (Dollars in thousands, except per share data) December 31, 2014 September 30, 2014 June 30, 2014 March 31, 2014 December 31, 2013 Total equity $3,558,349 $3,303,213 $3,102,258 $2,908,018 $2,686,832 Deduct: Goodwill and intangibles (127,738) (127,991) (127,693) (128,447) (128,720) Tangible common equity $3,430,611 $3,175,222 $2,974,565 $2,779,571 $2,558,112 Total assets $32,249,597 $30,641,292 $29,732,396 $28,796,233 $26,401,896 Deduct: Goodwill and intangibles (127,738) (127,991) (127,693) (128,447) (128,720) Tangible assets $32,121,859 $30,513,301 $29,604,703 $28,667,786 $26,273,176 Equity to assets ratio 11.0% 10.8% 10.4% 10.1% 10.2% Tangible common equity to tangible assets 10.7% 10.4% 10.0% 9.7% 9.7% For the Year Ended December 31, 2014 Three Months Ended March 31, 2014 Net income $766,349 $81,466 Add back: Stock compensation recognized upon IPO, net of tax 74,428 74,428 Other IPO-related expenses, net of tax 1,409 1,409 Core net income $842,186 $157,303 Weighted average common shares (diluted) 355,722,363 356,325,036 Net income per common share (diluted) $2.15 $0.23 Core net income per common share (diluted) $2.37 $0.44 Average total assets $29,173,189 $27,812,499 Return on average assets 2.40% 1.2% Core return on average assets 2.70% 2.3% Average total equity $2,997,634 $2,809,838 Return on average equity 23.10% 11.6% Core return on average equity 26.50% 22.4% Operating expenses $731,580 $318,448 Deduct: Stock compensation recognized upon IPO -117,654 (117,654) Other IPO-related expenses -2,175 (2,175) Core operating expenses $611,750 $198,619 Sum of net finance and other interest income and other income $3,657,169 $1,178,710 Efficiency ratio 20.00% 27.0% Core efficiency ratio 16.70% 16.9%

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