Company: BCDRF
Filing Date: 2025-07-01
Form Type: 6-K
Source: 0000950103-25-008240
Chunk: 1

Company: Banco Santander, S.A.
Filing Date: 2025-07-01
Form: 6-K
Chunk 1
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5 targets. The group 
 remains on track to deliver at least €10 billion in share buybacks from 2025 and 2026   
 earnings and excess capital over an accelerated timetable than originally planned3.     |

| · | The transaction remains subject to regulatory 
 approvals and Sabadell shareholder approval.  |

Madrid and London, 1 July 2025 - PRESS
RELEASE

Santander announces that it has reached an agreement
to acquire 100% of TSB Banking Group plc (TSB) from Banco de Sabadell, S.A. (Sabadell), with a valuation of £2.65 billion (approximately
€3.1 billion) in an all-cash transaction.

Strengthened customer proposition

TSB is a well-established UK retail bank with a
nationwide network of 218 branches and outlets, and a growing digital presence. It serves approximately 5 million customers, primarily
in the personal and small business segments, with £34 billion in mortgages (2% market share in the UK) and £35 billion in
deposits.

The acquisition further strengthens Santander’s
position in one of its core markets, expanding its customer base and lending capacity across the UK. Santander UK would become the third
largest bank in the country by personal current account balances and number four in mortgages.

1 Based on consensus 2026 earnings.

2 Based on TSB’s 31 March 2025 Tangible Net Asset Value of £1,826 million.

3 As announced on 5 February 2025, the board intends to allocate €10bn to shareholder remuneration in the form of share buybacks, corresponding to the 2025 and 2026 results, as well as to the expected excess capital. This share buyback target includes: (i) buybacks that are part of the existing shareholder remuneration policy outlined below, and (ii) additional buybacks following the publication of annual results to distribute year-end excesses of CET1 capital. The ordinary remuneration policy for the 2025 results, which the board intends to apply, will remain the same as for the 2024 results, consisting of a total shareholder remuneration of approximately 50% of the Group's reported profit (excluding noncash and non-capital ratios impact items), distributed in approximately equal parts between cash dividends and share buybacks. On 5 May 2025 when announcing the agreement for the sale of 49% of Santander Polska, Sant