REG - Banco Santander S.A. - SREP Capital Requirements 2023

Banco Santander SAAnnouncement

22/12/2022 10:30

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RNS Number : 6308K  Banco Santander S.A.  22 December 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 January 2023.

 

The ECB's decision establishes a Pillar 2 requirement ("P2R") of (i) of 1.58%
at a consolidated level (which entails an increase of 8 basis points with
respect to the last SREP decision effective on 1 March 2022, due to the ECB´s
prudential expectations on calendar provisioning in connection with
non-performing loans), of which at least 0.89% must be covered with Common
Equity Tier 1 capital ("CET1"); and (ii) of 1.50%, at an individual level, of
which at least 0.84% must be covered with CET1, this remaining unchanged from
the last SREP decision effective on 1 March 2022.

 

The minimum requirement ratio of CET1 at consolidated level consists of: (a)
the Pillar 1 requirements, (b) P2R, (c) the capital conservation buffer, (d)
the requirement derived from the consideration of Santander as a global
systemic financial institution, and (e) the countercyclical capital buffer.
The following table shows the minimum CET1 and total capital requirements, as
well as Santander's such phased-in 1  (#_ftn1) ratios as of 30 September 2022,
both at a consolidated and an individual level.

 

 

                MINIMUM REQUIREMENT             DATA AS OF 30/09/2022
                Consolidated        Individual  Consolidated  Individual

 CET1           8.91% 2  (#_ftn2)   7.85%       12.24%1       15.98%
 CAPITAL TOTAL  13.11% 3  (#_ftn3)  12.01%3     16.18%1       20.95%

 

 

As described in the table above, Santander maintains a surplus of capital over
these requirements, both at a consolidated and an individual level.
Therefore, 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), 22 December 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  (#_ftnref1) 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 30 September 2022, would
be 12.10% and 16.00%, respectively.

 2  (#_ftnref2) The minimum requirement ratio of CET1 at consolidated level
consists of: (a) the minimum capital requirement of Pillar 1 (4.50%), (b) P2R
(0.89%), (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
(0.0253%), calculated as of 30 September 2022.

(#_ftnref3) 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 (0.30% and 0.40%, respectively, at a consolidated level,
and 0.28% and 0.38% respectively at an individual level).

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