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					Sovereign Bancorp, Inc.

     Analyst Presentation

             July 19, 2005
Agenda

   Overview of Sovereign’s Strategies and Performance

   Shareholder Value and Corporate Governance

   Improving Performance and Strong Operating/Cash
    Earnings Growth

   Capital Allocation Discipline

   Comparison to Top 50 Banks and Management’s Priorities

   Summary and What to Expect From Sovereign




                                2
    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.
    Sovereign Bancorp is followed by several market analysts. Please note that any opinions, estimates, forecasts,
     or predictions regarding Sovereign Bancorp’s performance or recommendations regarding Sovereign’s securities
     made by these analysts are theirs alone and do not represent opinions, estimates, forecasts, predictions or
     recommendations of Sovereign Bancorp or its management. Sovereign Bancorp does not by its reference to any
     analyst opinions, estimates, forecasts regarding Sovereign’s performance or recommendations regarding
     Sovereign’s securities imply Sovereign’s endorsement of or concurrence with such information, conclusions or
     recommendations.


                                                        3
 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/Cash 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/Cash 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.


                                   4
Overview of Sovereign
An Exceptional Franchise Serving                                                                   ~$60 billion bank;
the Northeastern United States                                                                      19th largest bank
                                                                                                    in the U.S.
                                                                                                  665 branches &
                                                                                                    over 1,000 ATM’s
                                                                                         ME
                                                                     VT        NH
                                                                                                          Demographics
                                                  NY
                                                                                                       Median     HH Inc
                                                                      MA                                 HH       Change
                                                                                                       Income     ’05-’10
                                                                                                SOV    $59,889     20.47
                                                                                RI
                                                               CT
                                                                                                US     $49,747     17.36

                                      PA
                                                                                                      Overall
                                                                                                  Market Share(1)
                                                                                                                    Market
                                                                                         Rank Company             Share (%)
                                                   NJ                                     1   Bank of America        16.51%
   WV                                                                                     2   Royal Bk of Scotland 8.54
                                                        Key:        Sovereign Branches
                                                                                          3   Wachovia                7.85
                           MD                DE
          VA                                                                              4   Sovereign               5.89
                                                                                          5   TD Banknorth proforma   4.46
                                                                                          6   PNC Financial            3.83
                                                                                          7   Commerce                 3.07


Source: SNL DataSource
(1) Includes CT, MA, NH, NJ, Eastern PA and RI                  6
Vision
    When consumers and businesses think of a World
    Class financial services provider, they choose
    Sovereign


Mission
    Sovereign is a World Class financial services
    provider, committed to helping our customers
    succeed by understanding and anticipating their
    individual financial needs and providing
    customized solutions, resulting in each customer
    having six or more services with Sovereign



                         7
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 and services
      –Technology
      –Brand
      –Delivery channels and distribution system
      –Talent
      –Diversification
      –Sophistication of risk management

  Best of a Small Bank:
     –Flat structure
     –Local decision making
     –Cross functional lines to deliver bank to customer
     –Treat customers as “individuals”
     –Active community involvement culture


                                 8
    Summary of Sovereign’s Business Model

   Target attractive markets (growth
    opportunities, market insight)
                                                    Extremely attractive
   Community banking delivery model in
    all markets, effective 1/1/05                   franchise in one of the
        10 local markets, each with a Market       most desired
         CEO
                                                    geographic markets in
        Local decision making by experienced
         commercial bankers                         the world

   Consumer banking emphasizes
    convenience and customer service                Consistent growth in
        Many markets offer 7 day banking           operating/cash
        Appointment banking
                                                    earnings, improving
        24/7/365 phone and internet availability
        Guaranteed minimum customer service        operating metrics and
         standards/”Red Carpet” service             high internal generation
   Best-in-class customer/product makeup           of capital
        Full product suite
        Customer mapping/segmentation
        Targeting 6+ services sold/used


                                           9
Local Market Tactics
   Presidents calling on small/medium sized businesses

   Small community banking, commercial real estate and C&I focus

   Courier pick-up service for small businesses

   Localized banking for consumers

   Localized marketing compliments bank-wide brand advertising

   Free checking for consumers, businesses and not-for-profit
    organizations

   Free bill pay

   Local market private banking services

   Sales results are monitored on a daily basis



                                   10
Initial Results of Local Markets Are Good
   Consumer Banking
                                   January         March       June
    $ in thousands                  2005           2005        2005
    # of new consumer checking
    accounts                             11,300     16,100      23,100
    # of new Net Banking
    customers                            11,300     12,400      15,500
    # of POS transactions          5,732,300      7,089,500   7,206,400
    Consumer deposit fees            $16,433       $18,057     $19,012
   Business Banking
                                   January         March       June
    $ in thousands                  2005           2005        2005
    # of new commercial checking
    accounts                              2,600      3,100       3,100
    Commercial loan originations   $323,600       $475,300    $488,300




                                    11
Emphasis on Teamwork and Continuous
Improvement Culture




                 12
  Team Members Continuously Involved in
  Improving Operations
How We Make Money
Revenue:
 Make good loans with good margins                 + Interest Income
 Hold A grade investment securities                + Interest Income
 Sell other financial services                     + Fee Income
 Collect fees for deposits, cash mgmt,
  loans, capital markets, precious metals, etc.    + Fee Income
Mistakes:
 Bad loans                                         - Provision/Charge-offs
 Bad checks, fraud, poor reconcilements, etc.      - Losses
Deposit Sales:
 Core and other deposits                           -   Interest Expense
We Invest in People                                -   Salary/Benefits
Our People Need Systems, Space, Computers, etc.    -   Operating Expense
Pay Uncle Sam                                      -   Tax Expense

OUR GOAL – Net income growth of 10% - 15% a year        NET INCOME
EPS (Net income divided by number of shares)               EPS
                                                   =
                                13
Shareholder Value and
Corporate Governance
                        Above Average Shareholder Value Creation
                                       3-Year Stock Price Performance
                 180%
                                                                                                                            %
                                                                                                                       Appreciation
                 160%

                                                                                                                                49.4 %

                 140%
Indexed Prices




                                                                                                                                20.4 %
                 120%
                                                                                                                                16.5 %

                                                                                                                                11.2 %
                 100%




                 80%




                 60%
                  Jun-2002      Dec-2002          Jun-2003          Dec-2003            Jun-2004          Dec-2004   Jun-2005
                                                       Daily from 30-Jun-2002 to 30-Jun-2005

                                           Sovereign Bancorp     S&P 500 Banks      S&P 500        Dow Jones



                  6/30/05 closing price of $22.34                      15
                        Above Average Shareholder Value Creation
                                       5-Year Stock Price Performance
                 400%
                                                                                                                   %
                                                                                                              Appreciation
                 350%

                                                                                                                       217.7 %
                 300%


                 250%
Indexed Prices




                 200%


                 150%
                                                                                                                       55.2 %


                                                                                                                        (1.7)%
                 100%
                                                                                                                        (18.1)
                                                                                                                          %
                 50%


                  0%
                  Jun-2000         Jun-2001             Jun-2002               Jun-2003          Jun-2004   Jun-2005
                                                     Daily from 30-Jun-2000 to 30-Jun-2005

                                         Sovereign Bancorp     S&P 500 Banks       S&P 500   Dow Jones



                   6/30/05 closing price of $22.34                   16
                        Above Average Shareholder Value Creation
                                       10-Year Stock Price Performance
                 450%
                                                                                                                   %
                                                                                                              Appreciation
                 400%

                                                                                                                      264.1 %
                 350%


                 300%
                                                                                                                      183.2 %
Indexed Prices




                 250%
                                                                                                                      126.1 %

                 200%                                                                                                 119.9 %


                 150%


                 100%


                 50%


                  0%
                  Jun-1995         Jun-1997             Jun-1999               Jun-2001         Jun-2003   Jun-2005

                                                     Daily from 30-Jun-1995 to 30-Jun-2005

                                         Sovereign Bancorp     S&P 500 Banks       S&P 500   Dow Jones



                   6/30/05 closing price of $22.34                    17
    Insider Ownership and Buys Last Twelve
    Months

         Insider Ownership*                         Insider Buys in Last Twelve Months            (1)

         as of March 1, 2005                         Date of                               # of
                                                    Purchase            Insider           Shares

                    8.07%
                                                     8/10/04       Lynch                     5,000

                                                     4/25/05       Campanelli              10,000

                                                     5/12/05       Lynch                     3,000

                                                     5/16/05       Sidhu                   20,000

                                                     5/16/05       Sidhu                     1,650
* Includes non-vested and vested stock              (1)As disclosed in accordance with Form 4 filings
options and restricted stock. See 2005 Proxy        with the SEC
Statement for further details.

                                               18
       Strong Corporate Governance

              Sovereign’s Corporate Governance
               Quotient* is better than 97.6% of bank
               companies as ranked by Institutional
               Shareholder Services


              Goal is to always remain in top quartile of
               bank companies



Source: Yahoo Finance CGQ provided by
Institutional Shareholder Services (ISS) as of 7/1/05
*ISS is currently in the process of revising their ratings methodology


                                                    19
Improving Performance and
    Strong Operating/Cash
          Earnings Growth
      Stronger Balance Sheet
 Diverse Loan Mix                                                   Attractive Low-Cost Deposit
                                                                    Base
                                                       $41.3
                                           $40.3

                              $36.6
                                                                                               $36.7   $36.1
                                                                                     $32.6
                 $26.1
                                                                           $27.3
                                                                   $26.9
    $23.2




    2002         2003         2004         1Q05        2Q05         2002    2003      2004      1Q05   2Q05

            Residential Loans Consumer Loans                               Checking          Savings
            Commercial Loans                                               Money Market      CD's

Source: period-end balances presented in company financials
                                                              21
         Improved Quality of Balance Sheet
    Commercial and Consumer Loans are Increasing as a Percentage of Total Assets,
                   Reducing Reliance on the Investment Portfolio



Comm’l & Consumer
Loan Yld:     5.61%                   26.1%              25.4%     25.5%   26.1%   27.0%
NCO’s:         .25%
Net Loan Yld: 5.36%

Net Yld on
                                      21.5%              23.0%
Investments: 5.06%                                                 26.2%   25.8%   25.3%
Residential: 5.20%

                                      11.0%              11.7%
                                                                   15.6%   16.6%   16.7%
            Commercial

            Consumer
                                      28.7%              29.0%
            Residential                                            21.2%   19.6%   19.4%
            Mortgage
            Investments

                                     2002               2003       2004    1Q05    2Q05

Source: period-end balances presented in company financials
                                                              22
     Balance Sheet Has Been Gradually Delevered

             Significant Improvement Has Been Made in Reducing Investment
                          Securities as a Percentage of Total Assets

             28.7%                   29.0%




                                                              21.2%
                                                                      19.6%   19.4%




              2002                  2003                  2004        1Q05    2Q05

Source: period-end balances presented in company financials
                                                              23
   Positive Operating Leverage
                                                   2Q05               2Q04              % Change

                     Total Revenue                  $562               $456                    23%

                     G&A Expenses                   $273               $225                    22%
                     Operating Leverage                                                        1.1x


                                  Results in Continued Improvement
                                           in Efficiency Ratio




                     51.67%
                                                 50.44%        50.10%
                                   49.22%
                                                                            48.36%        48.67%




                       1Q04          2Q04          3Q04            4Q04        1Q05            2Q05
Efficiency ratio equals G&A expenses as a percentage of total revenue, defined as the sum of
net interest income and total fees and other income before securities transactions


                                                              24
        Consistent Growth in Operating/Cash
        Earnings
                       CAGR                           Total    EPS
                $700   GAAP Net Income –               15%     6%                      $2.00
                       Operating/Cash Earnings -       21%    12%
                                                                                       $1.80
                $600
                                                                                       $1.60
                $500                                                                   $1.40




                                                                                                 Earnings per Share
   Net Income




                $400                                                                   $1.20
                                                                                       $1.00
                $300                                                                   $0.80
                $200                                                                   $0.60
                                                                                       $0.40
                $100
                                                                                       $0.20
                 $0                                                                    $0.00
                           2002                2003                   2004
                           Net Income                    Operating/Cash Net Income
                           GAAP EPS                      Operating/Cash EPS

Operating/cash earnings excludes most non-cash, non-operating charges. Please see appendix for
reconciliation of net income to operating/cash earnings, as well as related per share amounts.

                                                25
Improvement in Operating Metrics
   Improved Operating Return
       on Average Assets

                                                                         Operating/Cash Return on
                                           1.30%    1.31%                 Average Tangible Equity
                                  1.22%
            1.20%
   1.17%              1.17%


    1Q04     2Q04      3Q04       4Q04     1Q05     2Q05

                                                                                                         29.09%
          Operating/Cash Return on                                                26.96% 26.65% 26.52%
               Average Equity                                   25.42%
                                                                         24.75%



                                                                 1Q04     2Q04     3Q04   4Q04   1Q05     2Q05

 15.08%
           14.87%

                    13.82% 13.61%                  13.84%
                                          13.34%



   1Q04     2Q04      3Q04        4Q04     1Q05     2Q05


* See reconcilement in Appendix
                                                           26
    High Cost Debt Has Been Paid Off

Amount                                       Maturity
(millions)          Description               Date               Date Paid Off
 $200         10.25% Senior Notes            5/15/04       $162.4 on 3/7/03
                                                           $37.6 on 5/15/04
 $175         8 5/8% Senior Notes            3/15/04       $139.2 on 3/7/03
                                                           $35.8 on 3/15/04
 $500         10.50% Senior Notes            11/15/06      9/21/04

     Current Debt Outstanding
              Sovereign Bancorp outstanding debt
              $300 million senior notes, Libor + 33 bps, due 8/25/06

              Sovereign Bank outstanding debt
              $300 million subordinated notes, 4   1/2%,   due 8/1/13
              $500 million subordinated notes, 5 ¼%, due 3/15/13

                                        27
     Capital
Management
Strong Internal Generation of Capital
  Average TCE generated per quarter in 2005 = ~ $200 million



   Sovereign Bancorp    12/03 12/04    3/05    6/05
   Tier 1 Leverage       5.61% 7.05%   6.96%   6.86%
   TCE/TA                4.66% 5.00%   4.86%   4.88%


   Sovereign Bank
   Tier 1 Leverage       6.66% 7.21% 7.44% 7.19%
   Risk Based Capital   12.12% 11.64% 11.55% 11.28%




                             29
Return of Net Income to Shareholders

(dollars in millions)


           Dividends    Stock                   Net  % of Net
              Paid   Repurchased      Total   Income Income
      2002    $26         $0           $26     $342   7.7%
      2003    $28         $0           $28     $402   7.0%
      2004    $38         $0           $38     $454   8.3%

    YTD '05         $26   $259        $285     $330   86.4%




                                 30
Capital Allocation Discipline

   Investing in organic growth

   Share repurchases

   Cash dividend

   Mergers and acquisitions
     Only if it meets our M&A criteria:
        • Accretive to operating/cash earnings within the first year
        • Must not significantly deviate from capital goals
        • Should be consistent with or improve our operating/cash earnings
          growth rate
        • Consistent with our critical success factors
        • Any acquisition will be compared to other alternative uses of capital




                                    31
Capital Allocation Decisions
   Current yield curve limits balance sheet growth
   Repurchase program
     Previously authorized repurchase program of ~20 million shares
     Sovereign has repurchased 16 million shares through July 1,
      2005
         YTD Combined Payout Ratio of 86%

   Cash dividend
     Increased annual cash dividend by $.04 during the first quarter of
      2005, to $.16 per year
     Board of Directors has committed to revisit the dividend level
      again during the second half of 2005
         Current Dividend Yield of .8%
         Current Dividend Payout Ratio of 8.7%

   At the current time, share repurchases are an optimal use for
    deploying excess capital



                                  32
        Sovereign’s Growth Compared to Eastern U.S.
        Banks and Thrifts
                                                  Growth                                                    3-Year Historical CAGR
                                                                                                                                             1
                                    06 / 05 EPS          LT IBES EPS            GAAP EPS             TBV/Share         Total Core Deposits         Total Loans
     Company                      Value      Rank       Value    Rank         Value   Rank        Value     Rank         Value      Rank         Value     Rank
     Sovereign                     11.1 %                  10.5 %                5.2 %             18.7 %                   8.9 %                 25.8 %
       Large Cap Eastern Banks                2                     1                      3                    1                    5                     2
       Regional Eastern Banks                 2                     1                      1                    1                    5                     1
       New York Area Thrifts                  2                     1                      2                    1                    4                     3

     Large Cap Eastern Banks 11.08108               2        10.5         1 5.151845           3 18.74815           1 8.9096505          5 25.78274               2
     SunTrust                       8.7 %     5             9.0 %   5            5.5 %     2        (5.7)%      6          15.7 %    3            15.6 %   4
     BB&T                           8.9       4            10.0     3            1.5       5        (1.7)       5          13.2      4            13.0     5
     North Fork                    12.1       1            10.5     1            3.7       4       14.7         2          62.9      1            78.9     1
     PNC Financial                  8.1       6             8.0     6            0.7       6        (0.2)       4           6.1      6            10.7     6
     M&T                            9.1       3            10.0     3           12.0       1        3.5         3          24.7      2            22.2     3
     Median                         8.9 %                  10.0 %                3.7 %              (0.2)%                 15.7 %                 15.6 %

     Regional Eastern Banks      11.08108           2        10.5         1 5.151845           1 18.74815           1 8.9096505          5 25.78274               1
     TD Banknorth                   9.2 %     6            10.1 %   2           (6.2)%     8        4.4 %       3          11.4 %    4            14.7 %   6
     Mercantile                    10.4       3             9.0     3            2.7       3        (1.3)       5          15.0      1            18.6     3
     Fulton Financial               9.1       7             9.0     3            4.2       2        (2.3)       6          12.4      3            20.0     2
     Valley National                9.5       5             8.5     6            2.1       5        4.3         4           5.5      7             9.8     7
     Hudson United                  7.8       8             8.0     7            2.4       4       13.6         2          (2.1)     8             5.7     8
     Susquehanna                   14.9       1             8.0     7            1.6       7        (5.4)       7          13.8      2            17.1     5
     Provident                      9.6       4             9.0     3            1.8       6        (8.5)       8           8.3      6            17.8     4
     Median                         9.5 %                   9.0 %                2.1 %              (1.3)%                 11.4 %                 17.1 %

     New York Area Thrifts       11.08108           2        10.5         1 5.151845           2 18.74815           1 8.9096505          4 25.78274               3
     New York Community            14.2 %     1            10.0 %   2            3.2 %     3       11.0 %       2          42.9 %    1            56.4 %   1
     Independence Community         9.8       4            10.0     2           12.6       1        (1.7)       5          36.0      2            38.6     2
     Astoria Financial              8.5       5             9.0     5            2.6       4        5.1         3           2.6      5             4.7     5
     Webster Financial             10.1       3             9.5     4           (2.6)      5        (1.0)       4          15.2      3            19.5     4
     Median                        10.0 %                   9.8 %                2.9 %              2.0 %                  25.6 %                 29.1 %

Source: SNL DataSource
                                                                                 33
[1] Core deposits are total deposits excluding foreign deposits and jumbo time deposits.
   Growth Driven in Part by Acquisitions
                                                1995 - 2005 YTD                                          2001 - 2005 YTD
                                                Aggregate Value of Acquisitions                          Aggregate Value of Acquisitions
                            Number of         Market Cap                Assets       Number of         Market Cap                Assets
   ($ in millions)
                           Acquisitions   Amount % of Growth Amount % of Growth     Acquisitions   Amount % of Growth Amount % of Growth

 Sovereign                     16          $ 5,968    73.5 %   $ 33,804    64.6 %        4          $ 2,746     41.4 %   $ 13,088    51.4 %

 Large Cap Eastern Banks
 SunTrust                      10         $ 16,884    80.9 %   $ 55,329    45.3 %        3          $ 8,386    108.6 %   $ 28,739    47.0 %
 BB&T                          28           12,981    64.8       55,608    70.8          9            6,208     88.7       26,426    74.5
 PNC Financial                  4            5,491    50.5       26,309   215.6          2            1,339      NM         9,104    46.1
 North Fork                    11            9,629    74.7       41,690    73.8          3            7,394     79.8       31,457    68.5
 M&T Bank                      10            5,765    51.4       33,781    77.9          1            2,984     51.8       18,319    73.5
 Median                        10                     64.8 %               73.8 %        3                      84.3 %               68.5 %

 Regional Eastern Banks
 TD Banknorth *                10          $ 2,146    42.5 %   $ 10,606    36.1 %       10          $ 2,146     88.3 %   $ 10,606    76.3 %
 Mercantile Bankshares          9              939    29.1        3,724    38.3          2              768     69.9        3,037    45.1
 Fulton Financial              14            1,230    53.6        5,363    42.5          5              587     51.5        2,706    31.5
 Valley National                7            1,093    65.4        4,212    63.9          2              277     51.3        1,059    30.2
 Hudson United                 21            1,501   108.3        8,906   146.5          1               (0)    (0.1)         270    13.3
 Susquehanna                    9              347    41.3        1,773    35.3          2              208     46.0        1,105    44.9
 Provident Bankshares           3              452    53.4        2,207    53.3          1              308     66.4        1,262   135.8
 Median                         9                     53.4 %               42.5 %        2                      51.5 %               44.9 %

 New York Area Thrifts
 New York Community             2          $ 3,354    74.1 %   $ 14,022    59.8 %        2          $ 3,354     92.7 %   $ 14,022    70.5 %
 Independence Community         7            1,928     NM        10,110     NM           1            1,502     67.4        7,486    66.4
 Astoria Financial              2            1,640    58.8        9,061    48.7          0                0      0.0            0     0.0
 Webster Financial             17            1,729    70.9       10,610    73.9          6              576     49.8        3,122    50.7
 Median                         5                     70.9 %               59.8 %        2                      58.6 %               58.5 %


* Excludes TD Banknorth/HU transaction
Source: SNL DataSource, Factset                                    34
    Prices Paid Have Been on Par With or Lower Than
    the Market ($ in millions)
 Bank & Thrift Acquisitions Greater than $100 million
                                                                                                                             Core
                              Date          Assets        Deal             Price to Book            Price to Earnings      Deposit     Premium to Market      Acquirer Stock
 Target                    Announced       Acquired       Value         Stated      Tangible      Core LTM     Forward     Premium      T-1        T-30       T-1        T-30      Charter

 Waypoint Financial             3/8/2004      $ 5,352          $ 996        2.3 x        2.4 x         26.5 x     21.5 x      28.9 %     12.9 %     10.7 %      1.0 %     (0.8)%    Thrift

 Seacoast Financial            1/26/2004        4,453          1,100        2.0          3.3           22.3       20.6        25.7       14.9       26.7        1.1        3.5      Thrift

 First Essex Bancorp           6/13/2003        1,740           403         2.6          2.9           18.5       17.8        23.2       28.9       33.7       (0.7)       6.9      Thrift

 Main Street Bancorp           7/17/2001        1,544           171         1.9          1.9           29.3       17.1         6.6       49.8       62.6       (2.3)      11.1      Bank

 Peoples Bancorp                9/8/1998        1,444           379         1.1          1.2            NA        22.3        11.4       26.3       18.3        0.0      (15.3)     Thrift

 Carnegie Bancorp             12/15/1997          424           106         2.8          2.8           26.7       22.9        26.8       10.9       38.5        0.6       14.2      Bank

 ML Bancorp                    9/18/1997        2,424           400         2.0          2.0           24.2       16.3        35.5       18.3       34.2        0.4       10.1      Thrift

 Bankers Corp.                  2/6/1997        2,567           323         1.7          1.7           13.4       12.1         8.9        7.4       22.5       (1.8)       1.9      Thrift

 Median                                                                     2.0 x        2.2 x         24.2 x     19.2 x      24.5 %     16.6 %     30.2 %      0.2 %      5.2 %


 Avg. Differential of Each Deal Relative to Comparable Deals               (0.2)x        (0.3)x         2.9 x      0.4 x       0.6 %      0.7 %      (2.7)%     0.2 %      2.0 %



 Branch Acquisitions Greater than $100 million
                                                                                    Franchise
                              Date          Assets                     Deposits      Deposit
 Target                    Announced       Acquired     Premium        Acquired     Premium

 Fleet Financial                9/7/1999    $ 10,560       $ 1,440      $ 12,000       12.0 %

 CoreStates Financial          4/27/1998        1,875           325        2,200       14.8

 Median                                                                                13.4 %


 Avg. Differential of Each Deal Relative to Comparable Deals                             5.3 %



Source: SNL DataSource                                                                            35
Comparison to
 Top 50 Banks
         Sovereign’s Total Loan Yield Compared to
         Top 50 National Banks
     10.00                                       Sovereign’s Total Loan Yield is in the Third Quartile
      9.00
                                                       Green = Top quartile
      8.00                                             Red = Bottom quartile

      7.00                                                                                                                                                                                    5.40%
      6.00                                                                                                                                                                                                                                                               Median
                                                                                                                                                                                                                                                                         5.67%
      5.00

      4.00

      3.00

      2.00

      1.00

      0.00
                                    ZION




                                                                                                                                                                                                                                                                                     STT
                                                                                                                                                                                                    FITB




                                                                                                                                                                                                                                                  STI
                                                                                                                                                                                       ICBC
                                                       BBT


                                                                   JPM




                                                                                           HIB




                                                                                                                                                                                                                                                                         NTRS
                                                                                                                                            MI
                                                                                                                  MTB
                   C




                                                 BAC


                                                             CBH




                                                                                                 NCC




                                                                                                                                                       FHN




                                                                                                                                                                                                                                      PNC
                                                                                                                        ASBC




                                                                                                                                                             HBAN




                                                                                                                                                                                                                                                                   DSL
                                                                                                                                                                                                                      ASO
                                                                                                             RF




                                                                                                                                                                                                                                 AF
                                                                                                                                                                                                                 UB




                                                                                                                                                                                                                                                                                BK
                                           SNV




                                                                         FBP
                                                                               USB
                                                                                     CNB



                                                                                                       KEY




                                                                                                                                                 BNK




                                                                                                                                                                           CMA
                                                                                                                                                                                 NYB




                                                                                                                                                                                                                                            NDE
                                                                                                                                                                                                           SOV
                                                                                                                                      NFB




                                                                                                                                                                    HCBK
                       BPOP




                                                                                                                               CBSS
                              WFC




                                                                                                                                                                                                                                                        GDW
                                                                                                                                                                                                                                                              WM
             WES




                                                                                                                                                                                              WBS




                                                                                                                                                                                                                            WB
Source: SNL Datasource as of 1Q05
Data not available for DRL, MEL, & WHI                                                                                          37
         Sovereign’s Total Deposit Cost Compared
         to Top 50 National Banks
                      Sovereign’s Total Deposit Cost is in the Second Quartile
3.00

                            Green = Top quartile
2.50
                            Red = Bottom quartile


2.00
                                      1.33%

1.50    Median
        1.43%

1.00



0.50



0.00
        ZION




          STT
         FITB
          STI
        ICBC




         BBT




         JPM
          HIB
       NTRS




           MI
         MTB
         CBH




         BAC


         PNC




       ASBC




         NCC




         FHN

       HBAN
         DSL
         MEL




         ASO
           RF




           AF
       SKYF

       BOKF
           UB




           BK
         BNK

         USB

        CMA




         KEY




       HCBK
       CBSS




         SOV




         NYB


         CNB




         SNV




         FBP
         NFB




       BPOP




         WHI
        WFC




        GDW
         WM
          WB




        WBS




        WES
Source: SNL Datasource as of 1Q05
Data not available for C, DRL & NDE                 38
       Sovereign’s Efficiency Ratio Compared to
       Top 50 National Banks
                         Sovereign’s Efficiency Ratio is in the First Quartile
           Green = Top quartile
70.0
           Red = Bottom quartile

60.0
         Median              48.4%
         55.8%
50.0


40.0


30.0


20.0


10.0


 0.0
        ZION




          STT
         FITB




          STI
        ICBC




         BBT




         JPM
          HIB




           MI
         MTB




       NTRS
            C
         BAC




         NCC




         CBH
         PNC
         FHN
       ASBC




       HBAN
         DSL




         MEL
         ASO
           AF




           RF
       SKYF
       BOKF




           UB




           BK
         NYB



         USB




         BNK




         CNB
         NDE
         FBP
         SOV




        CMA




         KEY




         SNV
         NFB
         WHI
       HCBK




       CBSS




       BPOP
        WFC
        GDW




         WM




          WB
        WES




        WBS




Source: SNL Datasource as of 1Q05
Data not available for DRL                   39
       Sovereign’s Tier 1 Leverage Compared to
       Top 50 National Banks
10.0
                  Sovereign’s Tier 1 Leverage Ratio is in the Third Quartile
 9.0                     Green = Top quartile
                         Red = Bottom quartile        6.96%
 8.0
                                                                               Median
 7.0
                                                                               7.19%
 6.0

 5.0

 4.0

 3.0

 2.0

 1.0

 0.0
        ZION




          STT
         FITB




          STI




        ICBC
         BBT




         JPM
          HIB




       NTRS




           MI



         MTB




            C
         FHN
         PNC
         NCC




         CBH



         BAC
       HBAN




       ASBC




         DSL
         MEL




         ASO
           RF




           AF
       SKYF
       BOKF




           UB




           BK
         FBP
        CMA
         SNV




         NYB

         KEY
         USB




         CNB
         NDE




         NFB



         BNK
         WHI




         SOV




       HCBK
       CBSS



       BPOP




        WFC




        GDW




          WB
        WES




        WBS
Source: Data as of 1Q05
Data not available for DRL & WM                  40
Management’s Priorities

   Continue to increase loan yields by gradually changing mix

   Continue to focus efforts on core deposit growth

   Maintain solid capital position and capital allocation discipline

   Remain focused on four critical success factors




                                41
Summary
  Earnings Goals 2005 through 2007

            Management’s
                                            Implied             Analyst’s     Implied
               Stretch
                                            Annual                Mean        Annual
            Operating/Cash
                                            Growth             Estimate (2)   Growth
                Goal (1)
2004                $1.84 A                   14%                  $1.66         -

2005                $2.00                      9%                $1.85      11.4%

2006           $2.20 - $2.30                 10%                  $2.04      10.3%

2007           $2.40 – $2.50                  10%                 N/A         N/A

(1)   Please see appendix for reconcilement of GAAP to Operating/Cash
      Earnings. Operating/cash earnings per share excludes $.04 of merger
      and integration charges in 2005 and amortization of intangibles of
      $.12, $.10, and $.09 for 2005, 2006 and 2007, respectively.
      Management’s earnings goals are not to be construed as guidance.
(2)   Analyst mean estimate includes amortization of intangibles and
      excludes certain one-time charges. Management’s definition of
      operating/cash earnings excludes both of these items.

                                                 43
      Above Average Shareholder Value
      Creation Potential
              Management’s
                                                                    Implied
                 Stretch
                                                 P/E                 Stock       CAGR*
              Operating/Cash
                                                                     Price
                  Goal (1)

 2004A                $1.84                     12.3x                   $22.55    N/A

 2005E              $2.00                       13x                    $26.00    15%

 2006E           $2.20 - $2.30                  13x                    $29.25    14%

 2007E           $2.40 - $2.50                  13x                $31.85        12%




 *    From year-end 2004 stock price of $22.55 to the date indicated
(1)   Please see appendix for reconcilement of GAAP to Operating/Cash
      Earnings

                                                  44
  Analyst Opinions Relative to Eastern U.S.
  Banks/Rating Agency Actions
                                           Under-                                                    Under-
As of                    Strong            perform        As of                Strong                perform
June 15, 2005           Buy / Buy   Hold    / Sell        June 15, 2005       Buy / Buy    Hold       / Sell
Sovereign                   53%     47%        0%         Sovereign             53%        47%        0%
Large Cap                                                 New York Area
                                                          Thrifts
SunTrust                     15%    69%       15%
                                                          New York
BB&T                          4%    72%       24%
                                                          Community             41%        41%        18%
PNC                          15%    70%       15%
                                                          Independence
North Fork                   72%    24%        4%         Community             33%        67%        0%
M&T Bank                     14%    86%        0%         Astoria Financial      8%        92%        0%
Average                     24%     61%      12%          Webster
                                                          Financial             20%        60%        20%
Regional
                                                          Average               26%        65%        9%
TD Banknorth                 12%    82%        6%
Mercantile                   37%    58%        5%
Fulton Financial             17%    58%       25%                      Rating Agency Actions

Valley National               0%    88%       13%         Received upgrade from Moody’s in January 2004

Hudson United                 0%    73%       27%
                                                          Placed on positive outlook by Moody’s in
Susquehanna                   0%    90%       10%         March 2005
Provident                     0%    55%        9%         Placed on positive outlook by S&P and Fitch in
Average                     15%     72%      14%          April 2005


Source: Thomson Financial                            45
Clear and Consistent Strategy and Tactics for
the Future
   Strong, experienced and deep management team in place

   Structure and strategy are organized to seize superior growth
    opportunities, while maintaining our capital allocation and M&A
    discipline

   Focus is on tactics and superior execution

   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

   Above average earnings and shareholder value growth and
    consistent improvement in operating metrics expected over the
    coming few years

                                    46
Appendix
One Non-GAAP Financial Measure

   Effective in the fourth quarter of 2004, Sovereign moved to
    one non-GAAP financial measure – Operating/Cash Earnings
      Provides greater financial transparency
      Provides useful supplemental information when evaluating
       Sovereign’s core businesses
      Consistent with SEC’s publicly stated desire for fewer non-GAAP
       disclosures

   Operating/Cash Earnings represent net income adjusted for
    after-tax effects of merger-related and integration charges,
    any other non-recurring charges and the amortization of
    intangible assets




                                 48
            Reconciliation of Operating/Cash Earnings
            to GAAP Earnings - Actual
    ($ in thousands, all numbers shown net of tax)    Year Ended December 31,              Qtr Ended June 30,

                                                     2004          2003       2002         2005 1           2004

Net Income/(loss) as reported                   $ 453,552     $ 401,851     $ 341,985    $ 189,805       $ 131,354

Merger-related and
integration costs                                    30,134                   10,316        (5,490)

Provision for Loan Loss                               3,900                    3,900

Loss on Debt Extinguishment                          42,605        18,838


Impairment Charge for FNMA and
FHLMC Preferred Stock                                20,891

Amoritzation of Intangibles                          51,186        50,100     54,121        12,229          12,047


Operating/Cash Earnings                         $ 602,268     $ 470,789     $ 410,322    $ 196,544       $ 143,401



     Note: Further details are available on our web site at www.sovereignbank.com and in our Annual Reports to Sharehold


1   Net Income for EPS purposes


                                                              49
      Reconciliation of Operating/Cash EPS to
      GAAP EPS - Actual
                                               Year Ended December 31,                             Qtr Ended June 30,

                                             2004              2003            2002                2005                   2004

Diluted Earnings per Share               $     1.38        $        1.38   $     1.23          $        0.47        $       0.42

Merger-related and
integration costs                        $     0.10                        $     0.04          $       (0.01)

Provision for Loan Loss                  $     0.01                        $     0.01

Loss on Debt Extinguishment              $     0.13        $        0.07

Impairment Charge for FNMA and
FHLMC Preferred Stock                    $     0.06

Amoritzation of Intangibles              $     0.16        $        0.17   $     0.19          $        0.03        $       0.04

Operating/Cash Earnings per Share        $     1.84        $        1.62   $     1.47          $        0.49        $       0.46



 Note: Further details are available on our web site at www.sovereignbank.com and in our Annual Reports to Shareholders


                                                               50
 Reconciliation of Operating/Cash EPS to
 GAAP EPS – Forward Looking Stretch Goals


                                        2005            2006            2007
Diluted earnings per share (GAAP)      $1.84        $2.10 - $2.20   $2.31 - $2.41
Merger-related and integration costs   $0.04
Amoritzation of Intangibles            $0.12           $0.10           $0.09

Operating/Cash Earnings per Share      ~$2.00       $2.20 - $2.30   $2.40 - $2.50


               Note: 2005 analyst mean estimate is $1.85,
               which excludes merger-related charges. This
               compares to management’s stretch goal for
               2005 GAAP EPS of $1.84 plus $.04 in merger-
               related charges, or $1.88.



                                               51
 Reconciliation of Equity to Tangible Equity
 and Operating/Cash Return on Equity to
 Operating/Cash Return on Tangible Equity
 - Actual
                                                                     Quarter Ended
                                      June 30           Mar. 31        Dec. 31       Sept. 30     June 30      March 31
                                       2005              2005            2004         2004         2004         2004
Average Equity                       $ 5,697,656        $5,588,703      $4,898,154   $4,544,175    3,879,403    3,559,930
Average Goodwill                       2,725,526         2,507,849       2,118,673    1,941,306    1,289,409    1,179,731
Average CDI                              261,854           270,193         278,319      272,861      259,762      268,364
Average Tangible Equity                2,710,276         2,810,661       2,501,162    2,330,008    2,330,232    2,111,835

Operating Return on Average Equity        13.84%           13.30%          13.61%       13.82%       14.87%        15.08%
  Effect of Goodwill                      13.91%           11.87%          11.53%       11.52%        8.23%         8.43%
  Effect of CDI                            1.34%            1.28%           1.51%        1.62%        1.66%         1.92%
Tangible Return on Average Equity         29.09%           26.45%          26.65%       26.96%       24.75%        25.42%




                                                   52

				
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