REG - Banco Santander S.A. - SREP Capital Requirements 2025

Banco Santander SAAnnouncement

11/12/2024 12:00

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RNS Number : 7194P  Banco Santander S.A.  11 December 2024

Banco Santander, S.A., ("Santander") communicates the following:

OTHER RELEVANT INFORMATION

Santander has been informed by the European Central Bank ("ECB"), after
following its Supervisory Review and Evaluation Process ("SREP"), of its
decision regarding the minimum prudential capital requirements effective as of
1 January 2025.

The ECB's decision maintains an unchanged Pillar 2 requirement ("P2R") of
1.74% at a consolidated level, of which at least 0.98% must be covered with
Common Equity Tier 1 capital ("CET1"). 9 basis points of P2R reflect the
capital add-on due to the ECB's prudential expectations on calendar
provisioning in connection with non-performing loans.

The following table shows the minimum CET1 and total capital requirements
applicable at the consolidated level as of 1 January 2024 and as of 1 January
2025, as well as Santander's ratios 1  as of 30 September 2024:

                Minimum Requirement                 Data
                As of 01/01/2024  As of 01/01/2025  As of 30/09/2024
 CET1           9.60%             9.67% 2           12.48%

 Total Capital  13.86%            13.93% 3          17.06%

 

As described in the table above, Santander maintains a surplus of capital over
these requirements, both in CET1 and total capital terms.

 

Boadilla del Monte (Madrid), 11 December 2024

 

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.

 1  Phased-in ratios.

 2  The minimum requirement ratio of CET1 at consolidated level consists of:
(a) the minimum capital requirement of Pillar 1 (4.50%), (b) P2R (0.98%), (c)
the capital conservation buffer (2.50%), (d) the requirement arising from the
consideration of Santander as Other Systemically Important Institution
("OSII"), which has been fixed by Banco de España effective on 1 January 2025
(1.25%), (e) the systemic risk buffer requirement, estimated as of 31 December
2024, arising from the activation by Banco de España of reciprocity with
Italy (0.02%) and Portugal (0.02%), and (f) the countercyclical capital buffer
requirement (0.3979%), calculated as of 30 September 2024, and for which,
according to the resolution from Banco de España issued on 1 October 2024, an
increase of 0.50% over the exposures located in Spain will be applicable from
1 October 2025, and an additional increase of 0.50% over such exposures is
expected to be applicable from 1 October 2026. With respect to the minimum
requirement applicable as of 1 January 2024, the increase of 7 basis points is
due to variations given in the items listed in limb (f), whose value was
0.3693%, as disclosed in the inside information filing dated 11 December 2023,
and for limb (e), whose value was not included in such filing since the
activation of reciprocity by Banco de España with Portugal is effective on 1
October 2024, and with Italy on 31 December 2024.

 3  In addition to the CET1 requirement, the minimum total capital requirement
at consolidated level includes: (i) Pillar 1 requirements of Additional Tier 1
(1.5%) and Tier 2 (2%), and (ii) part of the P2R requirements which can be
covered by Additional Tier 1 and Tier 2 (0.33% y 0.44%, respectively),
remaining unchanged with respect to the minimum requirement applicable as of 1
January 2024, save for the CET1 increase of 7 basis points specified in the
previous section.

 

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