REG - Banco Santander S.A. - Santander informs of the MREL determined by SRB

Banco Santander SAAnnouncement

Yesterday 17:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250507:nRSG7593Ha&default-theme=true

RNS Number : 7593H  Banco Santander S.A.  07 May 2025

 

 

Banco Santander, S.A. ("Banco Santander"), in compliance with the Securities
Market legislation, hereby announces:

OTHER RELEVANT INFORMATION

The Bank of Spain has formally notified the new binding minimum requirement
for own funds and eligible liabilities ("MREL"), both total and subordinated,
for the resolution group headed by Banco Santander 1  (#_ftn1) (the
"Resolution Group"), which has been determined by the Single Resolution Board
("SRB") and is applicable upon receipt of the notification. This notification
(the "current notification") replaces and supersedes the previously applicable
notification which was announced as other relevant information on 24 June 2024
(CNMV registration number 29289) (the "former notification").

The MREL requirement ("Total MREL") is expressed as a percentage of the
Resolution Group's total risk-weighted assets (Total Risk Exposure Amount,
"TREA") and of leverage exposure (Leverage Ratio Exposure, "LRE") as of 31
December 2023. Within this Total MREL, a requirement which must be met through
own funds and subordinated eligible liabilities ("Subordinated MREL") has been
determined.

In accordance with the current notification, the Resolution Group must comply
with the following MREL requirements 2  (#_ftn2) :

 

 

The Total MREL requirement and the Subordinated MREL requirement in terms of
TREA do not include the applicable Combined Buffer Requirement. The estimated
Combined Buffer Requirement, applicable on the TREA in accordance with the
applicable regulation and the supervisory criteria, is currently 4.16%.
Estimated Total MREL requirement in terms of TREA plus the Combined Capital
Buffer is 36.08%.

 

 

As of 31 March 2025, the structure of own funds and eligible liabilities of
the Resolution Group meets the requirements of Total MREL and Subordinated
MREL3.

Boadilla del Monte (Madrid), 7 May 2025

 

 

IMPORTANT INFORMATION

 

Non-IFRS and alternative performance measures

 

This document contains financial information prepared according to
International Financial Reporting Standards (IFRS) and taken from our
consolidated financial statements, as well as alternative performance measures
(APMs) as defined in the Guidelines on Alternative Performance Measures issued
by the European Securities and Markets Authority (ESMA) on 5 October 2015, and
other non-IFRS measures. The APMs and non-IFRS measures were calculated with
information from Grupo Santander; however, they are neither defined or
detailed in the applicable financial reporting framework nor audited or
reviewed by our auditors. We use these APMs and non-IFRS measures when
planning, monitoring and evaluating our performance. We consider them to be
useful metrics for our management and investors to compare operating
performance between periods. APMs we use are presented unless otherwise
specified on a constant FX basis, which is computed by adjusting comparative
period reported data for the effects of foreign currency translation
differences, which distort period-on-period comparisons. Nonetheless, the APMs
and non-IFRS measures are supplemental information; their purpose is not to
substitute IFRS measures. Furthermore, companies in our industry and others
may calculate or use APMs and non-IFRS measures differently, thus making them
less useful for comparison purposes. APMs using ESG labels have not been
calculated in accordance with the Taxonomy Regulation or with the indicators
for principal adverse impact in SFDR. For further details on APMs and Non-IFRS
Measures, including their definition or a reconciliation between any
applicable management indicators and the financial data presented in the
consolidated financial statements prepared under IFRS, please see the 2024
Annual Report on Form 20-F filed with the U.S. Securities and Exchange
Commission (the SEC) on 28 February 2025
(https://www.santander.com/content/dam/santander-com/es/documentos/informacion-sobre-resultados-semestrales-y-anuales-suministrada-a-la-sec/2025/sec-2024-annual-20-f-2024-disponible-solo-en-ingles-es.pdf),
as well as the section "Alternative performance measures" of Banco Santander,
S.A. (Santander) Q1 2025 Financial Report, published on 30 April 2025
(https://www.santander.com/en/shareholders-and-investors/financial-and-economic-information#quarterly-results).
Underlying measures, which are included in this document, are non-IFRS
measures.

 

The businesses included in each of our geographic segments and the accounting
principles under which their results are presented here may differ from the
businesses included and local applicable accounting principles of our public
subsidiaries in such geographies. Accordingly, the results of operations and
trends shown for our geographic segments may differ materially from those of
such subsidiaries.

 

Not a securities offer

 

This document and the information it contains does not constitute an offer to
sell nor the solicitation of an offer to buy any securities.

 

Past performance does not indicate future outcomes

 

Statements about historical performance or growth rates must not be construed
as suggesting that future performance, share price or results (including
earnings per share) will necessarily be the same or higher than in a previous
period. Nothing in this document should be taken as a profit and loss
forecast.

 

Third Party Information

 

In this document, Santander relies on and refers to certain information and
statistics obtained from publicly available information and third-party
sources, which it believes to be reliable. Neither Santander nor its
directors, officers and employees have independently verified the accuracy or
completeness of any such publicly available and third-party information, make
any representation or warranty as to the quality, fitness for a particular
purpose, non-infringement, accuracy or completeness of such information or
undertake any obligation to update such information after the date of this
document. In no event shall Santander be liable for any use by any party of,
for any decision made or action taken by any party in reliance upon, or for
inaccuracies or errors in, or omission from, such publicly available and
third-party information contained herein. Any sources of publicly available
information and third-party information referred or contained herein retain
all rights with respect to such information and use of such information herein
shall not be deemed to grant a license to any third party.

 

 

 1  (#_ftnref1) In accordance with the Multiple Point of Entry ("MPE")
resolution strategy of Grupo Santander as determined by the SRB:

-           the Resolution Group is composed of Banco Santander and
its relevant subsidiaries belonging to the same resolution group, mainly the
entities of the sub-groups headed by Santander Consumer Finance, S.A., Open
Bank, S.A. and Santander Totta SGPS, S.A. (the "Resolution Group"); and

-           a portion of the MREL requirement is calculated based on
the intragroup exposures between the Resolution Group and the other resolution
groups of Santander Group.

 

 2  (#_ftnref2) The new Total MREL requirement has been determined by the SRB
considering (i) a downward adjustment of 20% of the market confidence charge
("MCC") after determining that, in accordance with the applicable methodology,
a lower amount would be sufficient to ensure market confidence, according to
Article 12d(3) of Regulation (EU) 806/2014 and the SRB 2024 MREL Policy and
(ii) an adjusted regime related to holdings of eligible liabilities
instruments applicable to 50% of Banco Santander Mexico, S.A. (which does not
belong to the Resolution Group), in accordance with articles 72e(4) and 477a
of Regulation (EU) 575/2013.

 

3 As of 31 March 2025, with 11 resolution groups, the estimation of:

-           The TREA total amount of the Resolution Group is EUR
415,458 million; and

-           The LRE total amount of the Resolution Group is EUR
1,056,521 million.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCUPUAAAUPAGAM