REG - Banco Santander S.A. - SREP Capital Requirements 2022

Banco Santander SAAnnouncement

03/02/2022 14:45

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RNS Number : 6510A  Banco Santander S.A.  03 February 2022

 

 

 

 

Banco Santander, S.A., ("Santander") in accordance with the provisions of the
securities market legislation, communicates the following:

 

INSIDE INFORMATION

 

The results of the Supervisory Review and Evaluation Process ("SREP") have now
been confirmed and Santander has been informed by the European Central Bank
("ECB") of its decision regarding the minimum prudential capital requirements
effective as of 1 March 2022.

 

The ECB's decision establishes a Pillar 2 ("P2R") requirement of 1.50%, at an
individual and a consolidated level, of which at least 0.84% must be covered
with Common Equity Tier 1 capital ("CET1"). This requirement remains unchanged
from the last SREP decision effective on 1 January 2020.

 

The P2R requirement, when added to the Pillar 1 requirements, the capital
conservation buffer, the requirement derived from the consideration of
Santander as a global systemic financial institution, and the countercyclical
capital buffer, determines the total minimum prudential capital requirements.
The following table shows the minimum CET1 capital and total capital
requirements, as well as Santander's ratios as of 31 December 2021, on a
phased-in basis:  1 

 

 

                MINIMUM REQUIREMENT       Data as of 31/12/2021
                Consolidated  Individual  Consolidated  Individual

 CET1           8.85% 2       7.85%       12.51%1       16.90%1
 CAPITAL TOTAL  13.01% 3      12.01%3     16.81%1       22.21%1

 

 

As described in the table above, Santander maintains a surplus of capital over
these requirements, both at a consolidated and an individual level.  These
capital requirements do not imply any limitation to the distribution or
payment to the holders of Santander's Additional Tier 1 securities.

 

 

Boadilla del Monte (Madrid), 3 February  2022

 

IMPORTANT INFORMATION

 

No offer

The information contained in this document is subject to, and must be read in
conjunction with, all other publicly available information, including, where
relevant any fuller disclosure document published by Santander. Any person at
any time acquiring securities must do so only on the basis of such person's
own judgment as to the merits or the suitability of the securities for its
purpose and only on such information as is contained in such public
information having taken all such professional or other advice as it considers
necessary or appropriate in the circumstances and not in reliance on the
information contained in this document. No investment activity should be
undertaken on the basis of the information contained in this document. In
making this document available Santander gives no advice and makes no
recommendation to buy, sell or otherwise deal in shares in Santander or in any
other securities or investments whatsoever.

Neither this document nor any of the information contained therein constitutes
an offer to sell or the solicitation of an offer to buy any securities. No
offering of securities shall be made in the United States except pursuant to
registration under the U.S. Securities Act of 1933, as amended, or an
exemption therefrom. Nothing contained in this document is intended to
constitute an invitation or inducement to engage in investment activity for
the purposes of the prohibition on financial promotion in the U.K. Financial
Services and Markets Act 2000.

Historical performance is not indicative of future results

Nothing in this document should be taken as a profit forecast.

Third Party Information

In particular, regarding the data provided by third parties, neither
Santander, nor any of its administrators, directors or employees, either
explicitly or implicitly, guarantees that these contents are exact,
accurate, comprehensive or complete, nor are they obliged to keep them
updated, nor to correct them in the case that any deficiency, error or
omission were to be detected. Moreover, in reproducing these contents in by
any means, Santander may introduce any changes it deems suitable, may omit
partially or completely any of the elements of this document, and in case of
any deviation between such a version and this one, Santander assumes no
liability for any discrepancy.

 

 

 

 

 

 

 1  Data calculated by applying the transitional provisions of the applicable
regulation, of which the most significant are those related to IFRS 9.
Without the application of these provisions, the fully loaded CET1 ratio and
the consolidated total capital, at 31 December 2021, would
be 12.12% and 16.41%, respectively.

 2  The minimum requirement ratio of CET1 at consolidated level consists of:
(A) the minimum capital requirement of Pillar 1 (4.50%), (b) P2R (0.84%), (c)
the capital conservation buffer (2.50%), (d) the requirement arising from the
consideration of Santander as a global systemic financial institution (1%),
and (e) the countercyclical capital buffer requirement (0.01%), calculated as
of 31 December 2021.

3 In addition to the CET1 requirements, the minimum total capital
requirements at both consolidated and individual level include: (i) Pillar 1
requirements of Additional Tier 1 (1.5%) and Tier 2 (2%), and (ii) part
of the P2R requirements that can be covered by  Additional Tier 1
and  Tier 2 ( 0.28%) and (0.38%), respectively.

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