REG - Banco Santander S.A. - Stress test Results

Banco Santander SAAnnouncement

01/08/2025 18:00

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RNS Number : 7173T  Banco Santander S.A.  01 August 2025

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

OTHER RELEVANT INFORMATION

Banco Santander reports the results it has obtained in the most recent stress
test exercise carried out by the European Banking Authority (EBA) and the
European Central Bank (ECB).

The exercise covered a three-year period (end of 2024 - end of 2027) with two
scenarios (baseline and adverse) applied to the consolidated perimeter of
Grupo Santander. The CET1 ratio is a financial solvency ratio whose
implementation by the institutions is being carried out progressively, in
accordance with the transitional implementation schedules of the modifications
of Directive 2013/36/EU of the European Parliament and of the Council of
26 June 2013  (the "Capital Requirements Directive") and Regulation (EU)
No 575/2013 of the European Parliament and of the Council of 26 June 2013
(the "Capital Requirements Regulation")  1  (#_ftn1) , and International
Financial Reporting Standard ("IFRS") 9.

During the phase-in period of these regulations, in addition to the CET1
Phased-in ratio (a capital ratio calculated pursuant to the transitional
regime), which is the legally applicable ratio, the Fully-loaded CET1 ratio (a
capital ratio calculated assuming a full implementation of the aforementioned
regulations) is also used for information purposes 2  (#_ftn2) .

The stress test exercise results in the following projected capital ratios for
Grupo Santander for the periods and scenarios considered. A comparison of
these projected ratios with the Fully-loaded CET1 ratio (12.19%, according to
the clarifications included in footnote 3) 3  (#_ftn3) and the Phased-in CET1
ratio (12.78%) as of 31 December 2024 is also included in brackets below:

             ADVERSE SCENARIO                               BASELINE SCENARIO
             Fully-loaded CET1 ratio  Phased-in CET1 ratio  Fully-loaded CET1 ratio  Phased-in CET1 ratio
 31/12/2025  10.46% (-1.73%)          10.94% (-1.84%)       13.58% (+1.40%)          14.22% (+1.44%)
 31/12/2026  11.12% (-1.06%)          11.63% (-1.15%)       14.56% (+2.38%)          15.23% (+2.45%)
 31/12/2027  10.46% (-1.73%)          10.91% (-1.87%)       14.65% (+2.46%)          15.31% (+2.53%)

Boadilla del Monte (Madrid), 1 August 2025

 

 

IMPORTANT INFORMATION

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) The main change for this exercise is that both Regulation (EU)
2019/876 of the European Parliament and of the Council of 20 May 2019 ("CRR2",
in force until 31 January 2024) and Regulation (EU) 2024/1623 of the European
Parliament and of the Council of 31 May 2024 ("CRR3", in force from 1 January
2025), both modifying the Capital Requirements Regulation, have been applied
for the estimate.

 2  (#_ftnref2) The published Fully-loaded ratio is an estimate, calculated
according to the European Banking Authority ("EBA") methodology, due to the
complexity of the current transitional implementation schedule.

 3  (#_ftnref3) In accordance with CRR3, and following the adjustments made by
the EBA methodology, the following items are applied over the 12.76% original
Fully-loaded CET1 ratio calculated according to CRR2 as of 31 December 2024:

(i)            the transitional provisions of CRR3 are applied as if
they had already been fully implemented (-0.25%), leading to a ratio of
approximately 12.51%, which is consistent with the interpretation made by
Banco Santander of the application of CRR3 calculation for the Fully-loaded
CET1 ratio;

(ii)           several adjustments have been made for the estimate
of a final Fully-loaded CET1 ratio as of 31 December 2024, amongst others, the
exclusion of the possibility foreseen in articles 314.3 and 314.4 of CRR3
related to the application of the alternative standardized approach to
calculate the own-funds requirement for operational risk (-0.32%), leading to
a ratio of approximately 12.19%.

 

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