REG - Banco Santander S.A. - SREP Capital Requirements 2024

Banco Santander SAAnnouncement

11/12/2023 11:30

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RNS Number : 3618W  Banco Santander S.A.  11 December 2023

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

INSIDE 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 2024.

The ECB's decision establishes a 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"). The revised P2R entails an increase of 16 basis
points over the previous decision, of which (i) 15 basis points are due to a
methodological change in the determination of the P2R by the ECB, and (ii) 1
basis point reflects the increase of 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 2023 and as of 1 January
2024, as well as Santander's ratios 1  (#_ftn1) as of 30 September
2023:

                Minimum Requirement                   Data
                As of 01/01/2023  As of 01/01/2024    As of 30/09/2023
 CET1           8.91%             9.60% 2  (#_ftn2)   12.35%

 Total Capital  13.11%            13.86% 3  (#_ftn3)  16.31%

 

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 2023

 

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  (#_ftnref1) Phased-in ratios.

 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
(0.98%), (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 for 2024 by the Banco de España
(1.25%), and (e) the countercyclical capital buffer requirement (0.3693%),
calculated as of 30 September 2023. With respect to the minimum requirement
applicable as of 01/01/2023, variations are given in the items listed in limbs
(b), (d) and (e), whose values were 0.89%, 1% and 0.02530%, respectively, as
they were disclosed in the inside information filing dated 22 December  2022.

 3  (#_ftnref3) 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 that can be covered by Additional Tier 1 and Tier 2 (0.33% y
0.44%, respectively). With respect to the minimum requirement applicable as of
01/01/2023, variations are given in the CET1 minimum requirement, as specified
in the previous footnote, and in the items listed in limb (ii), whose values
were 0.30% and 0.40% respectively, as published in the inside information
filing dated 22 December  2022.

 

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