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

Banco Santander SAAnnouncement

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RNS Number : 5906F  Banco Santander S.A.  30 October 2025

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 2026.

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 2025 and as of 1 January
2026, as well as Santander's ratios 1  as of 30 September 2025:

                Minimum Requirement                 Data
                As of 01/01/2025  As of 01/01/2026  As of 30/09/2025
 CET1           9.65 2 %          9.85% 3           13.09%

 Total Capital  13.912%           14.11% 4          17.43%

 

The increase in the minimum requirements applicable both to CET1 and total
capital as of 1 January 2026, compared to those in force since 1 January 2025,
amounts to 20 basis points. This increase is due to changes in the systemic
risk buffer requirement (3 basis points) and the countercyclical capital
buffer requirement (17 basis points)3.

 

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), 30 October 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.

 1  Phased-in ratios.

 2  Requirements as of 1 January 2025 considering final figures as of 31
December 2024.

 3  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 2026
(1.25%), (e) the systemic risk buffer requirement (0.0628%) calculated as of
30 September, and (f) the countercyclical capital buffer requirement (0.4331%)
estimated as of 30 September, which must be increased from 1 October 2025 as a
result of the activation of 0.50% over the exposures located in Spain (0.12%),
and again from 1 October 2026, due to an additional increase of 0.50% over
such exposures.

 4  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 2025, save for the CET1 increase of 20 basis points specified above.

 

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