Sovereign Bancorp, Inc.
2005 Annual Meeting of
Shareholders
Thursday, April 21, 2005
Reading, PA
Forward Looking Statement



This presentation contains statements of Sovereign’s vision, mission, strategies, goals, beliefs, plans,
objectives, expectations, anticipations, estimates, intentions, financial condition, results of operation,
estimates of future operating results for Sovereign Bancorp, Inc. as well as estimates of financial
condition, operating efficiencies, revenue creation and shareholder value.
These statements and estimates constitute forward-looking statements (within the meaning of the
Private Securities Litigation Reform Act of 1995) which involve significant risks and uncertainties.
Actual results may differ materially from the results discussed in these forward-looking statements.
Factors that might cause such a difference include, but are not limited to: general economic conditions;
changes in interest rates; inflation; deposit flows; loan demand; real estate values; competition;
changes in accounting principles, policies, or guidelines; integration of acquired assets, liabilities,
customers, systems and management personnel into Sovereign’s operations and the ability to realize
the related revenue synergies and cost savings within expected time frames; possibility that expected
merger-related charges are materially greater than forecasted or that final purchase price allocations
based on fair value of the acquired assets and liabilities at acquisition date and related adjustments to
yield and/or amortization of the acquired assets and liabilities are materially different from those
forecasted; deposit attrition, customer loss, revenue loss and business disruption following Sovereign’s
acquisitions, including adverse effects on relationships with employees may be greater than expected;
anticipated acquisitions may not close on the expected closing date or it may not close; the conditions
to closing anticipated acquisitions, including stockholder and regulatory approvals, may not be
satisfied; Sovereign’s timely development of competitive new products and services in a changing
environment and the acceptance of such products and services by customers; the willingness of
customers to substitute competitors’ products and services and vice versa; the ability of Sovereign and
its third party processing and related systems on a timely and acceptable basis and within projected
cost estimates; the impact of changes in financial services policies, laws and regulations, including
laws, regulations, policies and practices concerning taxes, banking, capital, liquidity, proper accounting
treatment, securities and insurance, and the application thereof by regulatory bodies and the impact of
changes in and interpretation of generally accepted accounting principles: technological changes;
changes in consumer spending and saving habits; unanticipated regulatory or judicial proceedings;
changes in asset quality; employee retention; reserve adequacy; changes in legislation or regulation or
policy or the application thereof; and other economic, competitive, governmental, regulatory, and
technological factors affecting the Company’s operations, pricing, products and services.
2
Non-GAAP Financial Measures
This report contains Financial information determined by methods other
than in accordance with U.S. Generally Accepted Accounting Principles
(“GAAP”). Sovereign’s management uses the non-GAAP measures of
Operating Earnings, and the related per share amounts, in its analysis of
the company's performance. These measures, as used by Sovereign,
adjust net income determined in accordance with GAAP to exclude the
effects of special items, including significant gains or losses that are
unusual in nature or are associated with acquiring or integrating
businesses, and certain non-cash charges. Operating Earnings represent
net income adjusted for after-tax effects of merger-related and integration
charges, other various non-recurring charges and the amortization of
intangible assets. Since certain of these items and their impact on
Sovereign’s performance are difficult to predict, management believes
presentations of financial measures excluding the impact of these items
provide useful supplemental information in evaluating the operating results
of Sovereign’s core businesses. These disclosures should not be viewed as
a substitute for net income determined in accordance with GAAP, nor are
they necessarily comparable to non-GAAP performance measures that may
be presented by other companies.
3
Reconciliation of Operating Earnings to
GAAP Earnings
($ in thousands, all numbers shown net of tax)
Year Ended December 31,
2004
Net Income/(loss) as reported
$
Merger-related and
integration costs
Provision for Loan Loss
Loss on Debt Extinguishment
453,552
2003
2002
2001
$ 401,851
$ 341,985
$ 116,821
30,134
10,316
3,900
3,900
42,605
18,838
2000
$
$
97,063
5,525
179,299
$ 136,455
20,576
33,533
2005 1
$
152,545
2004
$
15,074
102,227
15,332
78,981
3,382
20,891
16,040
Non-solicitation Expense
Amoritzation of Intangibles
$
158,106
78,039
67,003
51,186
50,100
54,121
89,408
602,268
$ 470,789
$ 410,322
$ 376,409
$
306,884
2,421
$
26,968
15,588
229,264
$ 185,576
Note: Further details are available on our web site at www.sovereignbank.com and in our Annual Reports to Shareholders
1
1998
3,900
Financing-Related
Adjustments
Operating Earnings
(30,242)
1999
6,549
Restructuring Charges
Impairment Charge for FNMA
and FHLMC Preferred Stock
Qtr Ended March 31,
Net Income for EPS purposes
4
12,322
$
183,323
11,999
$
133,458
Reconciliation of Operating Earnings to
GAAP Earnings
(Per Share)
Year Ended December 31,
2004
Net Income/(loss) as reported
$
1.38
Merger-related and
integration costs
$
Provision for Loan Loss
Loss on Debt Extinguishment
2003
$
$
1.23
0.10
$
0.04
$
0.01
$
0.01
$
0.13
$
1.38
2002
0.07
Restructuring Charges
Impairment Charge for FNMA
and FHLMC Preferred Stock
$
2001
$
0.45
$
0.03
$
0.02
Qtr Ended March 31,
2000
1999
1998
2005
2004
$
(0.13)
$ 1.01
$
0.85
$
0.38
$
0.33
$
0.46
$ 0.12
$
0.21
$
0.04
$
0.05
$
0.01
$
0.38
$
0.08
$
0.01
0.06
Financing-Related Adjustments
Non-solicitation Expense
$
0.62
$
0.37
$ 0.05
Amoritzation of Intangibles
$
0.16
$
0.17
$
0.19
$
0.35
$
0.32
$ 0.15
$
0.10
$
0.03
$
0.04
Operating Earnings
$
1.84
$
1.62
$
1.47
$
1.46
$
1.47
$ 1.33
$
1.16
$
0.46
$
0.44
Note: Further details are available on our web site at www.sovereignbank.com and in our Annual Reports to Shareholders
5
Overview of Sovereign
An Exceptional Franchise Serving from South
of Philadelphia to Boston and Beyond…
VT
NH
NY
CT
• ~$60 billion bank
• 665 branches
& ~1,000 ATM’s
• 19th largest bank in
the U.S. ranked by
assets
MA
PA
ME
RI
• Top 15 Small
Business Lenders in
the U.S.
Market Share
NJ
WV
Key:
VA
Source: SNL DataSource
MD
Sovereign Branches
DE
7
Massachusetts
#3
Rhode Island
#3
New Hampshire
#5
Pennsylvania
#5
New Jersey
#7
Connecticut
#11
Maryland
#38
Strong Executive Management Team
Name
Business Unit
Years In Banking Prior Institutions
Jay Sidhu
Chairman, President
& CEO Bancorp
25+
Chemical,
Independence
Joe Campanelli
President & CEO,
Sovereign Bank
New England Division
20+
Shawmut, Fleet
Jim Hogan, CPA
CFO Bancorp
30+
Firstar, U.S. Bancorp
Jim Lynch
Chairman & CEO,
Sovereign Bank
Mid-Atlantic Division
30+
Continental, Prime,
Summit, Fleet
Larry Thompson
CAO of Bancorp,
COO of Bank
25+
Sovereign
Mark McCollom, CPA
CFO of Bank
20+
Meridian
8
Sovereign’s
Growth Years
A High Growth Company
1990
Assets $1.3 billion
Net Operating Income $5.5 million
*Mean net income estimate for covering analysts
Estimated 2005
Assets ~ $63 billion
Analyst Mean Net Income $765 million*
10
Sovereign’s Business Strategy: 1996-1999





In January 1996, Sovereign embarked on a “super-community banking”
strategy
Management and the Board believed this strategy was critical to improving
Sovereigns performance over the next several years
A goal of $2.00 by 2000 ($1.32 split-adjusted) was the rallying cry
Achieving a balanced loan mix and greater than 50% core deposits/total
deposits
Key performance metrics at year-end 1995:
Loan Mix
ROA
.78%
NIM
2.54%
ROE
14.95%
Fee Income/
Total Revenues
12.9%
Efficiency Ratio
50.1%
Tier 1 Leverage
3.98%
Commercial
1%
Deposit Mix
Consumer
Demand
3%
13%
86%
Residential
11
Time
Deposits
56%
41%
Other
Core
Sovereign’s Business Strategy: 1996-99

(cont.)
Sovereign undertook a series of acquisitions in support of this
previously announced strategy
Date
Name
5/31/96
# of
Transaction Multiple
Book Value
Earnings
Assets
Deposits
Branches
West Jersey
$100 MM
$90 MM
2
212% BV
21.7x LTM
2/18/97
First State
$630 MM
$550 MM
14
141% BV
15.5x LTM
8/29/97
Bankers Corp
$2.6 bn
$1.7 bn
15
167% Tang
12.5x LTM
9/19/97
Fleet Auto Division
$2.0 bn
N/A
N/A
2/27/98
MainLine Bancorp
$2.4 bn
$1.0 bn
29
215% Tang
17.4x 98EPS
7/31/98
Carnegie Bancorp
$424 MM
$323 MM
8
282% Tang
20.2x 98EPS
7/31/98
First Home Bancorp
$523 MM
$300 MM
10
238% Tang
17.9x LTM
9/4/98
CoreStates
$800 MM
$2.3 bn
93
6/15/99
Network
Companies
$50 MM
N/A
N/A
6/30/99
Peoples Bancorp
$1.4 bn
$500 MM
14
Branch Acquisition
12
Purchased at Discount to Par
14.8% deposit premium
150% BV
21.9x LTM
Sovereign’s Business Strategy: 1996-99

(cont.)
By year-end 1998, Sovereign had made significant progress on
the goals it had previously articulated to the Street:
Loan Mix
Consumer
ROA
ROE
NIM
Fee Income/
Total Revenue
.88%
15.5%
2.79%
14.7%
Efficiency Ratio
48.3%
34%
17.1%
Tier 1 Leverage
4.20%
Residential
26%
Commercial
Deposit Mix
Annual Operating EPS
Growth 1995-98:
46%
Demand
9%
Time
Deposits
13
49%
42%
Other
Core
1999: Fleet Acquisition Accelerates Goals

New targets were established to be achieved over the next 3-4
years:
– Core deposits to increase to 60% of total deposits
– Loan portfolio evenly balanced (1/3 Commercial, 1/3 Consumer, 1/3 Residential)
– Borrowings decrease to 25% or less of liabilities
– Increase fee-based revenues to 25% of total revenues
– Net Interest Margin of 3.50%
– Maintain top-quartile growth rate in operating earnings

Fleet acquisition presented a unique opportunity to accelerate most
of our publicly stated goals and acquire a dominant franchise for an
incredibly inexpensive price
Acquired
Loans: $8.1b
Deposits: $12.1b
Branches: 286
Transaction
Deposit Premium 12%
Premium, after-tax 7.8%
Earnings Multiple: 6.4x
14
Comparable Deals ($1b+ Assets)
1998-2000
Deposit Premium 19.4%
Earnings Multiple: 22.2x
Fleet Acquisition
(continued)

Management and the board debated the risks and rewards of
the Fleet transaction, ultimately viewing the opportunity as
outweighing the risks

By year-end 2002, with Fleet integrations behind us,
Sovereign’s balance sheet and business mix were where
desired. A mild recession and the lingering effects of high-cost
financing hindered net income and certain performance metrics:
ROA:
1.12%
ROE:
16.67%
NIM:
3.61%
Fee Income/Total
Revenues:
27.33%
Efficiency Ratio:
53.23%
Borrowings/
Total Liabilities:
24.5%
Annual Operating EPS
Growth 1998-2002: 6.8%
Tier 1 Leverage:
5.00%
Loan Mix
Deposit Mix
Time
Deposits
Comm'l
37%
44%
19%
26%
Consumer
59%
Other
Core
15%
Demand
Residential
15
Did the Fleet Deal Pay Off?
Since early 2000, Sovereign has significantly outperformed the
broader market
350%
Stock Price Performance
% Appreciated
300%
199.3%
Indexed Price (%)
250%
200%
150%
31.7%
100%
-4.1%
-22.1%
50%
Jan-2000
Feb-2001
Feb-2002
Feb-2003
Feb-2004
Weekly from 1-Jan-2000 to 28-Mar-2005
Sovereign Bancorp
3/28/05 closing price of $21.98
S&P 500
16
Dow Jones
S&P 500 / Banks
Feb-2005
Sovereign’s Historical
Performance
Strong Operating Earnings Growth
$700
5 year Operating Earnings
CAGR of 21%
$600
$500
$400
$300
$200
$100
$0
1999
2000
2001
18
2002
2003
2004
Non-Financial Highlights:

Ranked in the top 2% in the ISS Banks group regarding Corporate
Governance

We strengthened our market share through three key acquisitions:
First Essex, Seacoast, and Waypoint

We unveiled 18 new Red Carpet Customer Service guarantees to
complement the six guarantees we already had in place

We introduced Milestone Banking, a portfolio of value packages that
are designed to fit our customers’ current and ever-changing financial
needs

Our redesigned Internet website was voted by Forrester Research as
an industry “best practice”

For the third consecutive year, Sovereign was named one of the most
admired financial industry companies in the nation by Fortune
magazine
19
Improving Capital Since 2000
Sovereign Bancorp
Tier 1 Leverage
TCE/TA
9/00
3.00%
1.36%
12/01
4.21%
2.59%
12/02
5.01%
3.61%
12/03
5.61%
4.66%
12/04
7.05%
5.00%
$ average TCE generated per quarter in 2005 = $200 million
Sovereign Bank
($ in millions)
Tier 1 Leverage
Risk Based Capital
6.58%
7.21%
7.55%
6.66%
7.21%
10.06% 10.68% 10.69% 12.12% 11.55%
20
1-Year Stock Price Performance
120%
% Appreciated
115%
Indexed Price (%)
110%
7.5%
6.0%
105%
2.7%
1.6%
100%
95%
90%
Mar-2004
Jun-2004
Aug-2004
Nov-2004
Jan-2005
Daily from 28-Mar-2004 to 28-Mar-2005
Sovereign Bancorp
3/28/05 closing price of $21.98
S&P 500
21
Dow Jones
S&P 500 / Banks
Mar-2005
3-Year Stock Price Performance
200%
% Appreciated
175%
56.4%
Indexed Price (%)
150%
125%
10.9%
2.3%
0.8%
100%
75%
50%
Mar-2002
Oct-2002
May-2003
Dec-2003
Aug-2004
Daily from 28-Mar-2002 to 28-Mar-2005
Sovereign Bancorp
3/28/05 closing price of $21.98
S&P 500
22
Dow Jones
S&P 500 / Banks
Mar-2005
5-Year Stock Price Performance
350%
% Appreciated
300%
199.3%
Indexed Price (%)
250%
200%
150%
31.7%
100%
-4.1%
-22.1%
50%
Mar-2000
Mar-2001
Mar-2002
Mar-2003
Mar-2004
Weekly from 28-Mar-2000 to 28-Mar-2005
Sovereign Bancorp
3/28/05 closing price of $21.98
S&P 500
23
Dow Jones
S&P 500 / Banks
Mar-2005
10-Year Stock Price Performance
475%
% Appreciated
400%
279.8%
Indexed Price (%)
325%
211.5%
152.6%
250%
133.0%
175%
100%
25%
Mar-1995
Nov-1996
Jul-1998
Mar-2000
Nov-2001
Jul-2003
Monthly from 28-Mar-1995 to 28-Mar-2005
Sovereign Bancorp
3/28/05 closing price of $21.98
S&P 500
24
Dow Jones
S&P 500 / Banks
Mar-2005
10-Year Shareholder Value
 If 10 years ago, you had invested $10,000.00 in
Sovereign, KBW Bank Index, the Dow Jones Industrial
Average (DJIA) or the S&P 500. Today would be
worth:
Sovereign
KBW Bank Index
$54,683
$40,589
DJIA
S&P 500
$25,668
$25,982
25
Our Goals for 2005 and Beyond
We will continue to strive for:

Double-digit average annual growth rate in operating
earnings per share, striving to exceed $2.00 in operating
earnings for 2005

Significant progress in our journey from “Good to Great” in all
areas of the bank, including excellence in service and giving
back to the community

Executing our local community banking strategy, resulting in
substantially improved sales and service performance and
operating metrics

Remain disciplined regarding capital allocation process
26
Sovereign’s Current
Business Strategy
Sovereign’s Business Strategy
Combining the best of a large bank with the best of a
smaller community bank.
Best of a Large Bank:
–Products
–Services
–Technology
–Brand
–Delivery channels / distribution system
–Talent
–Diversification
–Sophistication of risk management
Best of a Small Bank:
–Flatter structure
–Local decision making
–Active community involvement culture
–Cross functional lines to deliver bank to customer
–Treat customers as “individuals”
28
Sovereign’s Banking Structure
Market
CEO
Commercial Real Estate
Lenders
Commercial
Lenders
Cash Management
Representatives
Small Business
Lenders
Retail
Branches
Financial
Consultants
10 Local Markets, each with a CEO responsible for
meeting profitability and revenue goals
29
Local Markets are Focused on Five Areas of
Growth
1. Achieving higher growth in loans, deposits and fees
through local decision making and higher quality
service
2. Improving margins and return on assets
3. Increasing fee income
4. Increasing the number of services being sold to or used
by a customer
5. Expanding Sovereign’s presence in the marketplace
30
Outstanding Customer Service…Guaranteed
Red Carpet Service - we perform or pay our customers
 Wait no longer than five minutes in a teller line
 Customers have access to Sovereign representatives 24
hours a day, 7 days a week
 We will return customer telephone calls and emails the same
business day, if received by 3:00 PM EST
 We provide and mail accurate account statements within 7
days
 Our ATMs are always available
 We greet our customers and thank them for banking with us
31
Sovereign Is Committed to the Following:
1. Stick with our discipline of blocking & tackling


There are tremendous opportunities within our market for
organic growth
Strong management team in place and our structure and
strategy is organized as such to seize those opportunities
2. Continue with our capital and M&A discipline




Any acquisition that we do must be accretive to earnings within
the first year,
not take us away materially from our capital goals,
and must not be dilutive to our future growth prospects.
Any acquisition opportunity, which requires capital allocation, will
be analyzed against share repurchases or other uses of capital.
3. Improve our operating fundamentals including net interest
margin, return on assets, return on equity, and dividends
32
Strategy. With Clear Purpose and Direction.
 There is nothing complicated about our strategy for
moving forward
 We are clear about our strategy, as well as our values,
mission and goals
 As we execute, we will remain committed to our critical
success factors of:
– Superior asset quality
– Superior risk management
– Strong sales and service culture that aligns team
member performance with a recognition and
rewards system
– High level of productivity through revenue growth
and efficient expense control
33
2004 Financial Report
James D. Hogan
Chief Financial Officer
Operating Earnings

Effective in the fourth quarter of 2004, Sovereign moved to
one non-GAAP financial measure
– Provides greater financial transparency
– Provides useful supplemental information when evaluating
Sovereign’s core businesses

Operating earnings represent net income adjusted for aftertax effects of merger-related and integration charges, other
various non-recurring charges, and the amortization of
intangible assets
35
2004 Financial Highlights:

Net income of $454 million, after all non-recurring charges, or $1.36 per
share

Growth in operating earnings of 28% to $602 million from $471 million
in 2003, and growth in operating earnings per share of 14% to $1.84
from $1.62 in 2003

Organic consumer and commercial loan growth of 28% and 10%,
respectively

Core deposit growth of 19% and organic core deposit growth of 4.00%

Significant growth in capital ratios, ending the year with tangible equity
ratio of 5.00% and Tier 1 Leverage of 7.05%

Improvement in our efficiency ratio of approximately 100 basis points

Improvement in the quality of the balance sheet as a result of reducing
the investment portfolio to 21% of assets as compared to 29% a year
ago, and removing $500 million of high-cost debt incurred in the Fleet
branch acquisition
36
First Quarter 2005 Financial Highlights:

Net income of $146 million, after all non-recurring charges, or $.38
per share, up 15% from a year ago

Growth in operating earnings of 37% to $183 million from $133
million a year ago, and operating earnings per share of $.46 from
$.44 a year ago

Net interest margin of 3.26% as compared to 3.29% in the fourth
quarter and 3.28% in the first quarter of 2004

Efficiency ratio of 48.4%, an improvement of 331 basis points from
the first quarter of 2004

Annualized net charge-offs decreased to .20% of average loans
compared to .28% in the fourth quarter and .51% in the first quarter
of 2004

Repurchased two million shares during the quarter through our
previously announced repurchase program

Increased cash dividend by 33%, resulting in an annual cash dividend
of $.16
37
Report Card – Long-Term Critical Success
Factors
 In March 2001, Sovereign set an EPS target of ~$2.00 in
operating earnings per diluted share by 2005
 Outlined a 5-point strategy for achieving these results:
–
–
–
–
Increase fee revenues by ~15% on average per year
Increase core deposits by 7%-10% on average per year
Retire high-cost holding company debt by 2006
Increase consumer and commercial loans by 8%-10% on
average per year
– Limit Operating Expense growth to 6%-7% on average per
year; grow revenue at least twice as fast as expenses
38
How Have We Done So Far?
2000
2004
4-yr Average
Annual
Growth
+/-
Fee Revenues*
$
229.7
$
468.1
19.5%
+
Core Deposits
$
15,229
$
25,441
13.6%
+
Holding Company Debt
$1.4 billion
outstanding
$350 million
outstanding
All high-cost
debt repaid
Commercial Loans
$
7,831
$
13,864
15.3%
+
Consumer Loans
$
6,102
$
14,269
23.6%
+
G&A Expenses
$
731.5
$
942.7
6.5%
+
* excludes securities gains/losses
39
Financial Goals We’d Like to Achieve Over
Next 1 to 2 Years

Continued core deposit growth

Consumer and Commercial loan growth

Continued growth in fee income

Reduce net charge-off’s

Expand Commercial and Consumer net interest margins

Control expense growth through productivity
improvement

Continue to look for good acquisition or other growth
opportunities, if available at reasonable prices
40
Earnings Goals 2005 through 2007
Management’s
Operating Goal
Operating
EPS Growth
2004
$1.84 A
14%
2005
 $2.00
11% 
2006
 $2.25
10% 
2007
 $2.47
10% 
41
Reading, Berks County
& Sovereign Bank
A Community Partnership
Dick Ehst,
Regional President, Berks County
and Executive Vice President
Managing Director, Corporate Communications
Community Involvement
Sovereign Bank is a committed corporate
citizen, supporting non-profit community
organizations
 Sovereign provides direct financial support to more than
65 local organizations and events in Berks County
–
–
–
–
Direct human services for persons in need
Supporting youth and education
Promoting arts and culture
Promoting a healthy community
 Sovereign actively promotes team member involvement
in our community
– Serving as leaders of 40+ organizations
– Contributed about 11,000 volunteer hours last year
44
Sovereign Bank actively supports
economic development & community
improvement initiatives
 Sovereign took the lead in bringing Cabela’s to Berks
County
– Secured Sales Tax Increment Financing for the Project
– Negotiated with Tilden Township
– Local Cabela’s is #1 store in the franchise and is the #1
travel destination in all of Pennsylvania (8 million visitors)
 Sovereign is taking a lead role with Our City Reading
– Provided $5 million in mortgages to first-time home-buyers
through Our City Reading
45
 Sovereign has played a major role in efforts to
help revitalize downtown Reading
–
–
–
–
Sovereign Performing Arts Center
Sovereign Center
Sovereign Plaza (5th & Penn Streets)
Over 1000 employees in downtown Reading
 Sovereign is involved in other important
initiatives to help revitalize our community
– The Initiative for a Competitive Greater Reading
– RiverPlace Development Corporation
– GoggleWorks
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We see positive momentum for our
community!
 Focused economic development initiatives
 Improved cooperation between the City of
Reading and Berks County
 Pending Expansion of DID
 Continuing focus on improved law enforcement
 A confluence of redevelopment initiatives
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Sovereign Plaza
Goggle Works
Reading Area Community College
RiverPlace
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Berks Market Profile
Sovereign Bank is #1 in Berks County
 15 branch offices in Berks County
 At March 31, total deposits of $923 million, up
4.5% from December 31
 $414 million in mortgages in Berks County
 $124 million in consumer loans
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Sovereign Bank is #1 in Berks County
 2,892 small business customers
 Commercial loan commitments of $392 million
 Commercial real estate commitments of $25.6
million
 Business deposit relationships total $117 million
 Continued focus on superior customer service
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Berks County Deposit Mix
 18% time deposits
 82% core deposits
 Blended cost of funds: 1.49%
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Looking Ahead…
Key 2005 Goals for Berks County
 Increase core deposits by 10%
 Increase loan outstandings by 12%
 Increase government banking portfolio by 10%
 Greater focus on small business segment
– Well positioned to leverage Sovereign’s superior products
and services
– Pennsylvania Small Business Growth initiative
 Expand business relationships with the non-profit sector
– Institutions of higher learning
– Health services providers
– Larger community organizations
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Growing Big By Staying Small
 Leverage local decision-making and community
involvement to gain market share
 A focused business-calling strategy
 Localized marketing tailored to the community
– Customer appreciation events
– Neighborhood-level marketing efforts
 Superior products and customer service
– Sophisticated array of products to meet needs
– Absolute commitment to superior customer service
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Berks County Bottom Line
 Sovereign in Berks County: A strong and
growing franchise and leading corporate citizen
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Thank You
Sovereign Bancorp, Inc.
2005 Annual Meeting of
Shareholders
Thursday, April 21, 2005
Reading, PA