Form 8-K Santander Consumer USA For: Nov 04

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November 4, 2014 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): November 4, 2014
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 November 4, 2014, Santander Consumer USA Holdings Inc. (the Company) issued a press release announcing its financial results for the quarter ended September 30, 2014. Copies of the Companys press release and an investor presentation for the quarter ended September 30, 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 November 4, 2014
Exhibit 99.2
Presentation Materials of Santander Consumer USA Holdings Inc., dated November 4, 2014.


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: November 4, 2014
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 third quarter 2014 net income of $191.4 million, or $0.54 per diluted common share, up 72 percent from prior year.
$21.4 billion in originations year-to-date 2014.
Return on average equity of 23.9 percent, and return on average assets of 2.5 percent for the third quarter 2014.
Dallas, TX (November 4, 2014)  Santander Consumer USA Holdings Inc. (NYSE: SC) (SCUSA) today announced net income for third quarter 2014 of $191.4 million, or $0.54 per diluted common share, compared to net income attributable to SCUSA shareholders for third quarter 2013 of $111.2 million, or $0.32 per diluted common share.

"Our Company delivered strong results with quarterly net income growth of 72 percent from prior year. Net income through nine months was $519.3 million, or $1.46 per diluted share. However, core net income1 through nine months was $595.2 million, or $1.67 per diluted share, keeping us ahead of our EPS objective for the year," said Tom Dundon, Chairman and Chief Executive Officer.
�
In the third quarter, total originations were $7.4 billion, including more than $3.0 billion in Chrysler retail loans, more than $1.2 billion in Chrysler leases originated for our own portfolio, and approximately $604 million in Chrysler lease and dealer loan originations facilitated for an affiliate. Other originations, including other auto and unsecured consumer loans, for the quarter totaled $2.5 billion. Total origination growth was 13 percent for the third quarter of 2014 as compared to 2013. For the first nine months of 2014, origination volume was $21.4 billion, including more than $9.1 billion in Chrysler retail loans, more than $3.7 billion in Chrysler leases, and approximately $1.6 billion in Chrysler lease and dealer loan originations facilitated for an affiliate. Other originations, including other auto and unsecured consumer loans, for the first nine months totaled $7.0 billion.

Mr. Dundon noted, "We have demonstrated strong origination volumes given our robust national origination franchise and the growing Chrysler relationship. A portion of our originations were sold to third parties or facilitated for an affiliate, which more than doubled our serviced for others portfolio since December 31, 2013. Continued prime loan sales, consistent with growing the capital-light fee income business, demonstrate our strategy to retain higher margin paper, which is accretive to long-term earnings. Although there are higher losses and provisions associated with these retained assets, we are comfortable with the risk and prefer the more attractive structures."

Finance receivables, loans and leases, net, increased 3 percent to $27.3 billion at September 30, 2014 from $26.5 billion at June 30, 2014 and increased 17 percent from $23.4 billion at December 31, 2013, driven by Chrysler Capital. During the quarter, SCUSA sold $2.4 billion of retail installment contracts with a higher average APR than the $739 million sold in third quarter 2013 and the $1.4 billion sold in the second quarter of 2014, due to the sale of more near-prime loans through our CCART platform as compared to the flow agreements which comprised all sales during the second quarter 2014 and the third quarter 2013. SCUSA's retained portfolio average APR as of the end of the third quarter for retail installment contracts was 16.3 percent, in line with the 16.3 percent as of the end of the fourth quarter 2013.




1 For a reconciliation from GAAP to this non-GAAP measure, see "Reconciliation of Non-GAAP Measures" on Page 13 of this release.

1


Net finance and other interest income increased 24 percent to $1.1 billion in the third quarter 2014 from $901 million in the third quarter 2013, driven by the 30 percent year-over-year growth in the average portfolio. The provision for credit losses increased to $770 million in the third quarter 2014, from $598 million in the third quarter 2013, and from $589 million in the second quarter 2014. The quarter-over-quarter provision increase was mainly driven by the maturing unsecured consumer loan portfolio as well as expected seasonal patterns as performance deteriorates in the second half of the year. Year-over-year provision increase was mainly attributable to portfolio growth as well as the maturing of the unsecured portfolio, partly offset by impact from the runoff of purchased portfolios. The allowance for loan losses increased to $3.3 billion at September 30, 2014, from $3.1 billion at June 30, 2014, resulting in an increase in the allowance to loans ratio to 12.3 percent from 11.6 percent.
SCUSAs net charge-off ratio increased to 8.4 percent for the third quarter 2014 from 5.8 percent for the second quarter 2014, and increased from 6.4 percent for the third quarter 2013, consistent with expected seasonal patterns and portfolio mix. The net charge-off ratio for retail installment contracts increased to 7.9 percent for the third quarter 2014 from 5.2 percent for the second quarter 2014, and increased from 6.5 percent for the third quarter 2013. Additionally, SCUSAs delinquency ratio increased moderately to 4.1 percent as of the end of the third quarter 2014 from 3.8 percent at the end of the second quarter 2014, and is in line with the 4.0 percent delinquency ratio as of the end of the third quarter 2013. As the unsecured portfolio seasons and used car values decrease from recent highs, net charge-offs are increasing both quarter-over-quarter and year-over-year.
"The allowance to loans ratio has increased due to seasonal and model impacts, as well as the mix of retained loans. Based on the configuration of our forward-looking provisioning model, we typically see an impact in the third quarter due to the model capturing two full fourth quarters of seasonally worse performance. We have also added provisions to our maturing unsecured business. We remain excited about the opportunity in unsecured and its associated margins. Finally, the execution of the CCART deal, consisting of roughly $1 billion of assets with above average credit profiles, resulted in a shift in the allowance to loans ratio from Q2, which did not include a similar transaction. Year-over-year increases in net losses are expected as historically favorable 2009-2012 vintages roll off and recoveries decrease. We see the shift in losses returning to more normalized levels, and our yields today are in line with our expectations," said Jason Kulas, President and Chief Financial Officer.
During the quarter, SCUSA incurred $202 million of operating expenses, up 15 percent from $176 million in the third quarter 2013, primarily due to SCUSAs strong asset growth over the previous year and some regulatory and compliance enhancements. SCUSA produced a 16.0 percent efficiency ratio for the quarter, compared to 18.0 percent in the same period last year, evidencing SCUSA's scalability as the portfolio grows.
During the quarter, SCUSA continued to show strong access to liquidity with the execution of two securitizations totaling $2.35 billion, $1.25 billion in private term amortizing facilities and an additional $250 million in warehouse borrowing capacity.
Additionally, SCUSA continued to focus on its forward flow relationships in order to leverage its servicing platform and increase servicing fee income. During the quarter, SCUSA completed loan sales totaling $1.4 billion through monthly loan sale programs to Bank of America and Citizens Bank of Pennsylvania ("CBP"). Additionally, $1.0 billion in assets were sold via the Chrysler Capital prime retail securitization platform ("CCART"). Year-to-date, SCUSA has sold or facilitated originations of over $7.4 billion to third parties or to an affiliate. Servicing fee income totaled $20.5 million in the third quarter 2014, up from $7.4 million in the third quarter 2013 primarily due to the increase in the portfolio of loans and leases serviced for others to $10.2 billion as of September 30, 2014, up from $8.0 billion as of June 30, 2014 and $4.5 billion as of December 31, 2013. For the third quarter 2014, net investment gains, which primarily consist of gains on sale, totaled $38.0 million, up from $21.6 million in the second quarter 2014 and $7.7 million in the third quarter 2013, driven mostly by the CCART transaction.





2


Conference Call Information
SCUSA management will host a conference call and webcast to discuss the third quarter results and other general matters at 9 a.m. EST on Tuesday, November 4, 2014. The conference call will be accessible by dialing 844-856-2691 (U.S. domestic), or 815-926-1990 (international), conference ID 15842998. 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 Q3 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 15842998, 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�November 4, 2015. An investor presentation 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 this non-GAAP financial measure provides 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 $40 billion (as of September�30, 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.
Financial Supplement
Third 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: Originations
10

Table 5: Asset Sales
11

Table 6: Ending Portfolio
12

Table 7: Reconciliation of Non-GAAP Measures
13


5


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

September�30,
2014

December�31,
2013
Assets
(Unaudited, Dollars in thousands, except per share data)
Cash and cash equivalents
$
43,889


$
10,531

Receivables held for sale
91,153


82,503

Retail installment contracts held for investment, net
21,319,080


20,219,609

Unsecured consumer loans, net
1,340,283


954,189

Restricted cash
1,989,434


1,563,613

Receivables from dealers, held for investment, net
97,178


94,745

Accrued interest receivable
352,473


319,157

Leased vehicles, net
4,414,008


2,023,433

Furniture and equipment, net
29,274


25,712

Federal, state and other income taxes receivable
119,397


372,338

Deferred tax asset
143,524


197,041

Goodwill
74,056


74,056

Intangible assets
53,935


54,664

Capital lease receivables, net
45,588




Other assets
528,020


410,305

Total assets
$
30,641,292


$
26,401,896

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

�
�����Notes payable
$
8,390,080


$
8,099,773

Notes payable  secured structured financings
18,444,397


15,195,887

�����Accrued interest payable
25,777


26,512

Accounts payable and accrued expenses
304,578


283,106

Federal, state and other income taxes payable
91,460


7,623

Other liabilities
81,787


102,163

Total liabilities
27,338,079


23,715,064

�
�
�
�
Equity:
�

�
Common stock, $0.01 par value��1,100,000,000 shares authorized;
�

�
348,984,592 and 346,763,261 shares issued and 348,981,438 and 346,760,107 shares outstanding, respectively
3,490


3,468

Additional paid-in capital
1,551,413


1,409,463

Accumulated other comprehensive income (loss)
4,556


(2,853
)
Retained earnings
1,743,754


1,276,754

Total stockholders equity
3,303,213


2,686,832

Total liabilities and equity
$
30,641,292


$
26,401,896


6


Table 2: Condensed Consolidated Statements of Income
�
�
For the Three Months Ended�
�September 30,

For the Nine Months Ended�
�September 30,
�
2014

2013

2014

2013
�
(Unaudited, Dollars in thousands, except per share amounts)
Interest on finance receivables and loans
$
1,177,828


$
1,011,492


$
3,481,605


$
2,723,774

Leased vehicle income
263,148


50,099


629,209


60,129

Other finance and interest income
2,512


1,029


3,636


5,870

Total finance and other interest income
1,443,488


1,062,620


4,114,450


2,789,773

Interest expense
129,135


120,589


381,895


291,062

Leased vehicle expense
200,397


41,485


499,601


48,513

Net finance and other interest income
1,113,956


900,546


3,232,954


2,450,198

Provision for credit losses
769,689


598,201


2,057,419


1,223,805

Net finance and other interest income after provision for credit losses
344,267


302,345


1,175,535


1,226,393

Profit sharing
10,556


27,238


66,773


34,802

Net finance and other interest income after provision for credit losses and profit sharing
333,711


275,107


1,108,762


1,191,591

Investment gains, net
38,015


7,678


95,431


8,950

Servicing fee income
20,547


7,384


53,051


21,010

Fees, commissions, and other
91,399


63,278


275,733


178,918

Total other income
149,961


78,340


424,215


208,878

Salary and benefits expense
88,940


79,293


384,544


217,172

Repossession expense
50,738


36,091


144,817


103,231

Other operating costs
62,228


60,756


202,219


175,909

Total operating expenses
201,906


176,140


731,580


496,312

Income before income taxes
281,766


177,307


801,397


904,157

Income tax expense
90,397


65,486


282,081


322,413

Net income
191,369


111,821


519,316


581,744

Noncontrolling interests



(576
)




1,821

Net income attributable to Santander Consumer USA Holdings Inc. shareholders
$
191,369


$
111,245


$
519,316


$
583,565

�
�
�
�
�
�
�
�
Net income
$
191,369


$
111,821


$
519,316


$
581,744

Net income per common share (basic)
$
0.55

�
$
0.32

�
$
1.49

�
$
1.69

Net income per common share (diluted)
$
0.54

�
$
0.32

�
$
1.46

�
$
1.69

Dividends declared per common share
$


�
$


�
$
0.15

�
$
0.84

Weighted average common shares (basic)
348,955,505

�
346,172,443

�
348,630,740

�
346,169,595

Weighted average common shares (diluted)
355,921,570

�
346,172,443

�
355,809,576

�
346,169,595






7


Table 3: Other Financial Information
�
�
(Dollars in thousands)
For the Three Months Ended
�
For the Nine Months Ended
�
�
September 30,
�
September 30,
�
September 30,
�
September 30,
�


2014
�
2013
�
2014
�
2013
Ratios
�

Yield on individually acquired retail installment
contracts
17.4
%

17.7
%

17.5
%

18.1
%

Yield on purchased receivables portfolios
15.0
%

13.0
%

15.2
%

13.1
%

Yield on receivables from dealers
3.2
%

3.6
%

3.8
%

3.7
%

Yield on unsecured consumer loans
21.9
%

31.7
%

24.5
%

30.8
%

Yield on earning assets (1)
15.7
%

16.8
%

16.1
%

17.1
%

Cost of debt (2)
1.9
%

2.2
%

2.0
%

2.1
%

Net interest margin (3)
14.1
%

14.9
%

14.4
%

15.3
%

Efficiency ratio (4)
16.0
%

18.0
%

20.0
%

18.7
%

Return on average assets (5)
2.5
%

1.8
%

2.4
%

3.6
%

Return on average equity (6)
23.9
%

17.7
%

23.1
%

31.6
%

Net charge-off ratio on individually
acquired retail installment contracts (7)
7.9
%

6.5
%

6.4
%

5.0
%

Net charge-off ratio on purchased
receivables portfolios (7)
3.0
%

7.0
%

4.4
%

5.2
%

Net charge-off ratio on unsecured
consumer loans (7)
20.4
%

0.6
%

17.4
%

0.4
%

Net charge-off ratio (7)
8.4
%

6.4
%

6.9
%

4.9
%

Delinquency ratio, end of period (8)
4.1
%

4.0
%

4.1
%

4.0
%

Tangible common equity to tangible assets (9)
10.4
%

9.6
%

10.4
%

9.6
%

Common stock dividend payout ratio (10)






10.1
%

49.8
%

Allowance to loans (11)
12.3
%

9.7
%

12.3
%

9.7
%
�
�
�
�
�
�
�
�
�
Other Financial Information
�
�
�
�
�
�
�
�
Charge-offs, net of recoveries, on�individually acquired retail installment ���contracts
$
476,802


$
323,929


$
1,124,917


$
641,900

�
Charge-offs, net of recoveries, on purchased
receivables portfolios
8,728


46,653


47,571


129,467

�
Charge-offs, net of recoveries, on unsecured
consumer loans
79,938


814


178,675


821

�
Total charge-offs, net of recoveries
$
565,468


$
371,396


$
1,351,163


$
772,188

�
End of period Delinquent principal over 60 days
$
1,101,525


$
969,886


$
1,101,525


$
969,886

�
End of period Gross finance receivables, loans and capital leases
26,806,074


24,274,258


26,806,074


24,274,258

�
End of period Gross finance receivables,
loans, and leases
31,831,631


25,638,151


31,831,631


25,638,151

�
Average Gross individually acquired retail
installment contracts
24,150,655


19,873,599


23,261,250


17,214,334

�
Average Gross purchased receivables portfolios
1,149,344


2,676,906


1,446,655


3,325,260

�
Average Gross receivables from dealers
113,372


243,679


124,026


175,213

�
Average Gross unsecured consumer loans
1,567,511


536,154


1,369,631


248,206

�
Average Gross finance receivables, loans and capital leases
$
27,016,623


$
23,330,338


$
26,217,950


$
20,963,013

�
Average Gross finance receivables, loans,
and leases
$
31,616,751


$
24,256,400


$
29,958,707


$
21,353,289

�
Average Total assets
$
30,446,488


$
24,352,346


$
29,173,189


$
21,514,270

�
Average Debt
$
26,750,117


$
21,451,420


$
25,718,012


$
18,681,703

�
Average Total equity
$
3,198,603


$
2,525,997


$
2,997,634


$
2,453,782







8


(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 End of period Gross finance receivables and loans
(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 13 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 Gross finance receivables, loans and capital leases held for investment










9


Table 4: Originations
�
Three Months Ended
�
Nine Months Ended
�
September�30, 2014
�
September�30, 2013
�
June 30,
2014
�
September�30, 2014
�
September�30, 2013
Retained Originations
(Dollars in thousands)
�
(Dollars in thousands)

Retail installment contracts
$
3,497,949

�
$
4,490,120

�
$
3,142,527

�
$
10,439,003

�
$
11,641,318

Average APR
15.0
%
�
15.2
%
�
16.0
%
�
15.9
%
�
16.0
%
Discount
3.7
%
�
2.4
%
�
4.6
%
�
4.1
%
�
3.2
%
�
�
�
�
�
�
�
�
�
�
Unsecured consumer loans
$
249,474

�
$
276,265

�
$
262,617

�
$
619,993

�
$
665,166

Average APR
21.6
%
�
23.5
%
�
20.0
%
�
22.7
%
�
22.9
%
Discount


�
8.3
%
�


�


�
9.0
%
�
�
�
�
�
�
�
�
�
�
Receivables from dealers
$
1,609

�
$
34,012

�
$
17,806

�
$
25,515

�
$
145,449

Average APR
3.5
%
�
4.5
%
�
3.8
%
�
4.1
%
�
3.6
%
Discount


�


�


�


�


�
�
�
�
�
�
�
�
�
�
Leased vehicles
$
1,267,291

�
$
928,301

�
$
909,924

�
$
3,389,214

�
$
1,419,605

�
�
�
�
�
�
�
�
�
�
Capital lease receivables
$
31,503

�
$


�
$
16,527

�
$
51,076

�
$


Total originations retained
$
5,047,826

�
$
5,728,698

�
$
4,349,401

�
$
14,524,801

�
$
13,871,538

�
�
�
�
�
�
�
�
�
�
Sold Originations
�
�
�
�
�
�
�
�
�
Retail installment contracts
$
1,707,984

�
$
640,252

�
$
1,384,174

�
$
4,906,267

�
$
898,075

Average APR
4.8
%
�
3.6
%
�
4.1
%
�
5.0
%
�
3.7
%
�
�
�
�
�
�
�
�
�
�
Receivables from dealers
$


�
$
133,475

�
$


�
$
8,724

�
$
204,782

Average APR


�
3.0
%
�


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


�
$


�
$
369,114

�
$
369,114

�
$


Total originations sold
$
1,707,984

�
$
773,727

�
$
1,753,288

�
$
5,284,105

�
$
1,102,857

�
�
�
�
�
�
�
�
�
�
Total SCUSA originations
$
6,755,810

�
$
6,502,425

�
$
6,102,689

�
$
19,808,906

�
$
14,974,395

�
�
�
�
�
�
�
�
�
�
Facilitated Originations
�
�
�
�
�
�
�
�
�
Receivables from dealers
$
139,408

�
$
17,150

�
$
108,759

�
$
392,920

�
$
17,150

Leased vehicles
464,523

�


�
486,446

�
1,196,637

�


Total originations facilitated for affiliates
$
603,931

�
$
17,150

�
$
595,205

�
$
1,589,557

�
$
17,150

�
�
�
�
�
�
�
�
�
�
Total originations
$
7,359,741

�
$
6,519,575

�
$
6,697,894

�
$
21,398,463

�
$
14,991,545



10


Table 5: Asset Sales

Asset sales may include assets originated in prior periods.
�
Three Months Ended
�
Nine Months Ended
�
September�30, 2014
�
September�30, 2013
�
June 30,
2014
�
September�30, 2014
�
September�30, 2013
�
(Dollars in thousands)
�
(Dollars in thousands)
Asset Sales
�
�
�
�
�
�
�
�
�
Retail installment contracts
$
2,413,251

�
$
739,112

�
$
1,384,174

�
$
5,483,149

�
$
897,160

Average APR
4.8
%
�
3.6
%
�
4.1
%
�
5.0
%
�
3.7
%
�
�
�
�
�
�
�
�
�
�
Receivables from dealers
$
18,227

�
$
204,782

�
$


�
$
18,227

�
$
204,782

Average APR
4.7
%
�
2.9
%
�


�
4.7
%
�
2.9
%
�
�
�
�
�
�
�
�
�
�
Leased vehicles
$


�
$


�
$
369,114

�
$
369,114

�
$


Total asset sales
$
2,431,478

�
$
943,894

�
$
1,753,288

�
$
5,870,490

�
$
1,101,942



11


Table 6: Ending Portfolio

Ending held for investment portfolio, average APR and remaining unaccreted discount as of September 30, 2014 and December 31, 2013 are as follows:
�
September�30, 2014
�
December�31, 2013
�
(Dollars in thousands)
Retail installment contracts
$
24,923,308

�
$
23,199,341

Average APR
16.3
%
�
16.3
%
Discount
2.6
%
�
2.8
%
�
�
�
�
Unsecured consumer loans
$
1,640,276

�
$
1,165,778

Average APR
23.4
%
�
24.0
%
Discount


�
2.8
%
�
�
�
�
Receivables from dealers
$
97,826

�
$
95,835

Average APR
4.3
%
�
4.9
%
Discount


�




12


Table 7: Reconciliation of Non-GAAP Measures



(Dollars in thousands, except per share data)
�
For the Nine Months Ended
�
�
�
�
September 30, 2014
�
�
Net income
�
$
519,316

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

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

�
�
Core net income
�
$
595,153

�
�
�
�
�
�
�
Weighted average common shares (diluted)
�
355,809,576

�
�
Net income per common share (diluted)
�
$
1.46

�
�
Core net income per common share (diluted)
�
$
1.67

�
�
�
�
�
�
�
�
�
September 30, 2014
�
September 30, 2013
Total equity
�
$
3,303,213

�
$
2,569,158

��Deduct: Goodwill and intangibles
�
127,991

�
128,573

Tangible common equity
�
$
3,175,222

�
$
2,440,585

�
�
�
�
�
Total assets
�
$
30,641,292

�
$
25,608,280

��Deduct: Goodwill and intangibles
�
127,991

�
128,573

Tangible assets
�
$
30,513,301

�
$
25,479,707

�
�
�
�
�
Equity to assets ratio
�
10.8
%
�
10.0
%
Tangible common equity to tangible assets
�
10.4
%
�
9.6
%



13
Santander Consumer USA Holdings Inc. 3Q14 Investor Presentation

�
IMPORTANT INFORMATION 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. 2

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

�
3Q14: HIGHLIGHTS � Third quarter net income of $191.4 million1, or $0.54 per diluted common share, up 72% from prior year, ahead of EPS objective for the year � Net income attributable to SCUSA shareholders for third quarter 2013 of $111.2 million, or $0.32 per diluted common share � Third quarter ROE and ROA of 23.9% and 2.5%, respectively � Q3 volume, including assets originated for an affiliate, totaled $7.4 billion � More than $3.0 billion in Chrysler retail loans and $1.2 billion in Chrysler leases originated for our own portfolio � Total originations up 13% for third quarter 2014 versus 2013 � Continued demand for assets; serviced for others portfolio more than doubled this year to $10.2 billion at September 30, 3014 from $4.5 billion at the end of 2013 Robust Financial Performance Strong Originations 1 GAAP Net income attributable to SCUSA shareholders ($ in millions) � Focused on balance sheet management and risk-adjusted returns, accretive to long-term earnings � Increased prime loan sales to retain higher margin paper � Q3 Chrysler Capital penetration rate of 29%; remain confident about ongoing success of Chrysler agreement � Allowance to loans ratio increased to 12.3% from 11.6% quarter-over- quarter, driven by forward-looking provision methodology, seasonality, and the mix of retained loans � Current portfolio performance consistent with retained mix and typical seasonal patterns of deterioration in the second half of the year � As the unsecured portfolio matures, provisions increase � Abundant liquidity in current market � In Q3, more than $1.3 billion issued from the core nonprime platform, SDART � $1.0 billion issued from the Chrysler Capital prime retail platform, CCART � $1.5 billion of additional liquidity from private term amortizing facilities and warehouse facilities � Loan sales totaled $2.4 billion for third quarter 2014 Stable Credit Performance Capital Markets Expertise Sophisticated Risk Management � Continued investment in technology and operations while growing net income1 72% year-over-year � Leverage existing online platform to build out ChryslerDirect.com, an online upstream sales platform for Chrysler off-lease units to the dealer network as well as a grounding mobile application � Training for sales teams in the dealer network to begin in Q4 2014 Technology and Operations 4

�
3Q14: PERFORMANCE 1 Yield on earning assets (%) is defined as the ratio of Net finance and other interest income, net of leased vehicle expense, to Average gross finance receivables, loans and leases 2 Net interest margin (%) is defined as the ratio of Net finance and other interest income to Average gross finance receivables, loans and leases Three Months Ended September 30, 2014 June 30, 2014 March 31, 2014 September 30, 2013 Yield on Earning Assets1 (%) 15.7% 16.0% 16.6% 16.8% Cost of Debt (%) 1.9% 2.0% 2.0% 2.2% Net Interest Margin2 (%) 14.1% 14.3% 14.8% 14.9% Efficiency Ratio3 (%) 16.0% 17.4% 16.9%4 18.0% Net Charge-off Ratio (%) 8.4% 5.8% 6.4% 6.4% Return on Average Assets (%) 2.5% 3.4% 2.3%4 1.8% Return on Average Equity (%) 23.9% 33.0% 22.4%4 17.7% Diluted EPS ($) $0.54 $0.69 $0.444 $0.32 Key Metrics & Ratios End of Period September 30, 2014 June 30, 2014 March 31, 2014 September 30, 2013 Delinquency Ratio (%) 4.1% 3.8% 3.1% 4.0% Loan Loss Allowance to.Loans (%) 12.3% 11.6% 11.0% 9.7% Tangible Common Equity to Tangible Assets5 (%) 10.4% 10.0% 9.7% 9.6% 5 3 Efficiency ratio (%) is defined as the ratio of Operating expenses to the sum of Net finance and other interest income and Other income 4 Q1 2014 adjusted for $75.8 million non-recurring stock compensation and other IPO-related expenses; reconciliation on slide 23 5 See reconciliation on slide 23

�
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 4,300 employees across multiple locations in the U.S. 1 As of September 30, 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 online platform, RoadLoans.com � Active relationships with more than 17,000 franchised automotive dealers throughout the United States � Originate loans through selected independent dealers, regional banks and OEMs, primarily Chrysler Direct Auto Finance Indirect Auto Finance and OEM Relationships Vehicle Finance � Finance third-party receivables for installment consumer products, via retailers � 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 � Strengthened scalability evidenced by acquisitions and/or conversions and originations of more than $98BN of assets since 2008 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 Since its May 1, 2013 launch, Chrysler Capital has originated approximately $16.7 billion in retail loans and more than $6.1 billion in leases, and facilitated the origination of more than $1.7 billion in leases and dealer loans originations for an affiliate.2 1 Source: Chrysler Company filings and Ward Automotive Reports as published by the U.S. Department of Commerce, Bureau of Economic Analysis 2 As of September 30, 2014 CHRYSLER CAPITAL 9

�
AGENDA Highlights Strategy and Business Appendix: Financial and Supplemental Information Results 10

�
$24,729,822 $29,116,037 $30,112,428 $2,996,011 $7,977,331 $10,248,185 September 30, 2013 June 30, 2014 September 30, 2014 Owned and Serviced Serviced for Others Total Serviced Portfolio 1 (in thousands) ORIGINATION TRENDS SCUSA continued to produce strong origination volume during the third quarter, originating and facilitating the origination of $7.4 billion in loans and leases Originations (in thousands) Three Months Ended September 30, 2013 June 30, 2014 September 30, 2014 SCUSA VOLUME Retail Installment Contracts $5,130,372 $4,526,701 $5,205,933 Unsecured Consumer Loans $276,265 $262,617 $249,474 Receivables from Dealers2 $167,487 $17,806 $1,609 Leases3 $928,301 $1,295,565 $1,298,794 Subtotal - SCUSA $6,502,425 $6,102,689 $6,755,810 Originations for an affiliate $17,150 $595,205 $603,931 Total Originations $6,519,575 $6,697,894 $7,359,741 SCUSA retains servicing on loans sold to third parties and affiliates or facilitated for affiliates, through bulk sales, flow programs and securitizations4 $37,093,368 1 US GAAP and does not include loans owned by SCUSA serviced by others; numbers are gross 2 Excludes originations facilitated for an affiliate 3 Includes capital leases 4 Securitizations sold through the residual are accounted for as sales 46% $40,360,613 $27,725,833 11

�
INCOME & OPERATING EXPENSES $901 $954 $1,043 $1,076 $1,114 $112 $114 $81 $246 $191 14.9% 14.6% 14.8% 14.3% 14.1% Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Net Finance and Other Interest Income Net Income Net Interest Margin Highlights � In an environment of continued competition, SCUSA continues to produce steady returns, with third quarter 2014 net income2 of $191.4 million, up 72 percent year-over-year � Third quarter net finance and other interest income increased by $38 million, or 4 percent, from last quarter, and $213 million, or 24 percent, from third quarter 2013, driven by the 30 percent year-over-year increase in the average portfolio � SCUSA continues to demonstrate industry-leading efficiency, despite increases in expenses due to the evolving regulatory environment 1 Q1 2014 core net income and operating expenses adjusted for $119.8 pre-tax ($75.8 after-tax) million non-recurring stock compensation and other IPO-related expenses; reconciliation on slide 23 2 GAAP net income attributable to SCUSA shareholders Income ($ in millions) $76 $157 1 12 Expenses and Efficiency Ratio ($ in millions) $25,608 $26,402 $28,796 $29,732 $30,641 $176 $203 $199 $211 $202 18.0% 19.2% 16.9% 17.4% 16.0% Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Total Assets Operating Expenses Efficiency Ratio 1 $120 $319 1

�
$598 $629 $699 $589 $770 $371 $494 $407 $379 $565 6.4% 8.1% 6.4% 5.8% 8.4% Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Provision Expense Net Charge-offs Net Charge-off Ratio CREDIT ($ in millions) � 31-60 and 61+ delinquency ratios increased moderately quarter-over-quarter, but remain in line with delinquency trends year-over-year � Net charge-off ratio came in higher in the same periods as the unsecured portfolio continues to season and used car values decline from recent highs � Provision expense increased quarter-over-quarter due to seasoning of the unsecured portfolio and mix of retained loans; SCUSA retained more leases and sold more loans � Loan sales were higher credit quality than retained loans � Seasonality more apparent in the third quarter provision numbers due to: � The provision model capturing two full fourth quarters of seasonally worse performance � Actual performance of the portfolio worsening in the back half of the year per typical seasonal patterns Highlights Delinquency Trends 7.9% 8.5% 5.9% 7.8% 8.5% 4.0% 4.5% 3.1% 3.8% 4.1% Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 31-60 Day Delinquency 61+ Day Delinquency Provision Expense and Net Charge-offs 13

�
CAPITAL End of Period September 30, 2014 June 30, 2014 March 31, 2014 December 31, 2013 Tier 1 Leverage 9.5% 9.0% 8.8% 8.7% Tier 1 Risk-Based 9.4% 8.8% 8.4% 8.4% Total Risk-Based 10.8% 10.2% 9.8% 9.8% TCE/TA Ratio1 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 23 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 includible 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 14

�
4.8 3.4 11.3 5.0 6.3 6.3 12.1 12.1 Santander and Related Subsidiaries Third-Party Revolving Privately Issued Amortizing Notes Public Securitizations FUNDING AND LIQUIDITY Funding Sources � Fourteen external lenders in committed third party revolving facilities as of quarter-end � SCUSA has been the largest issuer of retail auto ABS since 2011, issuing a total of over $32 billion in retail auto ABS since 2010 � During the quarter, SCUSA continued to show strong access to liquidity with the execution of two securitizations totaling $2.35 billion as well as $1.5 billion of additional liquidity from private term amortizing facilities and warehouse facilities � Additionally, SCUSA has flow agreements in place related to the sale of Chrysler Capital retail, lease, and dealer lending � In the third quarter SCUSA executed $2.4 billion in loan and dealer sales to RBS Citizens, Bank of America, SBNA, and through the CCART platform, with net investment gains of $38 million Highlights 15 4.8 3.3 10.9 4.5 6.2 6.2 12.1 12.1 Committed Amount Utilized Balance Committed Amount Utilized Balance June 30, 2014 September 30, 2014 $34.5 $26.8 Abundant liquidity in current market ($ in billions) $34.0 $26.1

�
AGENDA Highlights Strategy and Business Appendix: Financial and Supplemental Information Results 16

�
COMPANY ORGANIZATION 17 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 September 30, 2014 1 Beneficial Ownership includes options currently exercisable or exercisable within 60 days of November 3, 2014 1.2% Ownership 28.2% Ownership 10.0% Ownership (13.3% Beneficial Ownership) 1 0.1% Ownership (0.6% Beneficial Ownership) 1

�
ECONOMIC INDICATORS Consumer Sentiment Index1 Motor Vehicle Sales1 � Motor vehicle sales in the third quarter were the highest in eight years � After an exceptionally strong new vehicle sales pace in August, growth, as expected, pulled back in September 1 Source: Bloomberg September 30, 2014 � Consumer sentiment is moving steadily to new recovery highs 84.60 40 50 60 70 80 90 100 High: 90.40 Low: 55.30 Average: 72.42 16.34 5 7 9 11 13 15 17 19 21 High: 16.70 Low: 9.04 Average: 13.40 (units in millions) 18 Source: Bloomberg 9/30/2014 Source: Bloomberg 9/30/2014

�
CONSUMER FINANCE ENVIRONMENT 19 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) � Wholesale used vehicle prices2 fell 0.3% in September, down for the fifth consecutive month � Year-over-year, the Manheim Index was down 1.1% � SCUSA recovery rates declined 1.6% due to seasonality and pressure from the new vehicle market � The industry is normalizing, coming down from recent record high recovery rates 60+ Day Delinquency Rates3 Net Loss Rates3 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) 0 2 4 6 8 10 12 14 0 0.5 1 1.5 2 2.5 (%) Prime (Left Scale) (%) Nonprime (Right Scale) Manheim Index1 121.4 110 115 120 125 130 135 Source: Manheim Index 09/2014

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CREDIT PROFILES 46.4% 29.1% 12.8% 3.1% 25.3% 30.7% 26.7% 17.3% 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% 0% 10% 20% 30% 40% 50% <540 540-599 600-659 >660 Q4 2008 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Retail Installment Contracts1 FICO Bands Unsecured Consumer Loans 2.8% 27.3% 43.1% 26.8% 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% 0% 10% 20% 30% 40% 50% <540 540-599 600-659 >660 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 FICO Bands 1 Held for investment; excludes prime assets held for sale ($90 million retail installment contracts held for sale as of September 30, 2014) SCUSA business has migrated up market since 2008 and continues to stabilize 20

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CONSOLIDATED BALANCE SHEET (Unaudited, Dollars in thousands) September 30, 2014 June 30, 2014 September 30, 2013 Assets Cash and cash equivalents $ 43,889 $ 45,913 $ 27,351 Receivables held for sale 91,153 123,791 73,425 Retail installment contracts held for investment, net 21,319,080 21,444,601 20,418,553 Unsecured consumer loans, net 1,340,283 1,233,637 569,781 Restricted cash 1,989,434 2,007,946 1,612,943 Receivables from dealers held for investment 97,178 85,194 176,925 Accrued interest receivable 352,473 344,658 297,642 Leased vehicles, net 4,414,008 3,567,546 1,221,949 Furniture and equipment, net of accumulated depreciation 29,274 30,405 22,607 Federal, state and other income taxes receivable 119,397 7,487 178,717 Deferred tax asset 143,524 220,338 446,999 Goodwill 74,056 74,056 74,056 Intangible assets 53,935 53,637 54,517 Capital lease receivables, net 45,588 19,636 - Other assets 528,020 473,551 432,815 Total assets $ 30,641,292 $ 29,732,396 $ 25,608,280 Liabilities and Equity Liabilities: Notes payable  credit facilities $ 8,390,080 $ 7,762,950 $ 7,407,526 Notes payable  secured structured financings 18,444,397 18,391,660 15,275,871 Accrued interest payable 25,777 24,452 20,076 Accounts payable and accrued expenses 304,578 281,250 244,548 Federal, state and other income taxes payable 91,460 81,145 - Other liabilities 81,787 88,681 91,101 Total liabilities 27,338,079 26,630,138 23,039,122 Equity: Common stock, $0.01 par value 3,490 3,489 3,462 Additional paid-in capital 1,551,413 1,550,513 1,409,463 Accumulated other comprehensive income (loss) 4,556 (4,129) (6,595) Retained earnings 1,743,754 1,552,385 1,162,828 Total stockholders' equity 3,303,213 3,102,258 2,569,158 Total liabilities and equity $ 30,641,292 $ 29,732,396 $ 25,608,280 21

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CONSOLIDATED INCOME STATEMENT For the Three Months Ended (Unaudited, Dollars in thousands, except per share amounts) September 30, 2014 June 30, 2014 September 30, 2013 Interest on finance receivables and loans $ 1,177,828 $ 1,163,448 $ 1,011,492 Leased vehicle income 263,148 218,938 50,099 Other finance and interest income 2,512 874 1,029 Total finance and other interest income 1,443,488 1,383,260 1,062,620 Interest expense 129,135 128,314 120,589 Leased vehicle expense 200,397 179,135 41,485 Net interest income 1,113,956 1,075,811 900,546 Provision for credit losses 769,689 589,136 598,201 Net interest income after provision for loan losses 344,267 486,675 302,345 Profit sharing 10,556 24,056 27,238 Net interest income after provision for loan losses and profit sharing 333,711 462,619 275,107 Investment gains, net 38,015 21,602 7,678 Servicing fee income 20,547 22,099 7,384 Fees, commissions, and other 91,399 95,030 63,278 Total other income 149,961 138,731 78,340 Salary and benefits expense 88,940 93,689 79,293 Repossession expense 50,738 45,648 36,091 Other operating costs 62,228 71,889 60,756 Total operating expenses 201,906 211,226 176,140 Income before income taxes 281,766 390,124 177,307 Income tax expense 90,397 143,643 65,486 Net income 191,369 246,481 111,821 Noncontrolling interests - - (576) Net income attributable to Santander Consumer USA Holdings Inc. shareholders $ 191,369 $ 246,481 $ 111,245 Net income per common share (basic) $ 0.55 $ 0.71 $ 0.32 Net income per common share (diluted) $ 0.54 $ 0.69 $ 0.32 Weighted average common shares (basic) 348,955,505 348,826,897 346,172,443 Weighted average common shares (diluted) 355,921,570 356,381,921 346,172,443 22

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RECONCILIATION OF NON-GAAP MEASURES � Core performance (Dollars in thousands, except per share data) September 30, 2014 June 30, 2014 March 31, 2014 December 31, 2013 June 30, 2013 Total equity $ 3,303,213 $ 3,102,258 $ 2,908,018 $ 2,686,832 $ 2,470,063 Deduct: Goodwill and intangibles (127,991) (127,693) (128,447) (128,720) (127,990) Tangible common equity $ 3,175,222 $ 2,974,565 $ 2,779,571 $ 2,558,112 $ 2,342,073 Total assets $ 30,641,292 $ 29,732,396 $ 28,796,233 $ 26,401,896 $ 22,778,430 Deduct: Goodwill and intangibles (127,991) (127,693) (128,447) (128,720) (127,990) Tangible assets $ 30,513,301 $ 29,604,703 $ 28,667,786 $ 26,273,176 $ 22,650,440 Equity to assets ratio 10.8% 10.4% 10.1% 10.2% 10.8% Tangible common equity to tangible assets 10.4% 10.0% 9.7% 9.7% 10.3% 23 Nine Months Ended September 30, 2014 Three Months Ended March 31, 2014 Net income $ 519,316 $ 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 $ 595,153 $ 157,303 Weighted average common shares (diluted) 355,809,576 356,325,036 Net income per common share (diluted) $ 1.46 $ 0.23 Core net income per common share (diluted) $ 1.67 $ 0.44 Average total assets $ 29,173,189 $ 27,812,499 Return on average assets 2.4% 1.2% Core return on average assets 2.7% 2.3% Average total equity $ 2,997,634 $ 2,809,838 Return on average equity 23.1% 11.6% Core return on average equity 26.5% 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 interest income and other income $ 3,657,169 $ 1,178,710 Efficiency ratio 20.0% 27.00% Core efficiency ratio 16.7% 16.9%

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