Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 901

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 901
---
 contingent liabilities, all of which are subject to impairment and, therefore, allowances are taken in respect thereof.

(K)Credit impaired balances include credit impaired loans and advances, customer guarantees and customer commitments granted.

(L)The pay-out ratio is calculated as cash dividends paid plus cash dividends payable on account of the net attributable income of the period (i.e., in 2024, we include the 10 euro cent interim dividend paid in November 2024 and the 11 euro cent final dividend payable in May 2025) divided by profit attributable to the Parent. Therefore, it does not include in the numerator the amounts paid as scrip dividends or share buybacks. See note 4 to our 'Consolidated financial statements' included in Part 1 of this annual report on Form 20-F. The 50% underlying pay-out goal for 2024 indicated by the Group is calculated as total dividends charged to the net attributable income of the period (including around 50% of the total through share buybacks) divided by underlying attributable profit, and is subject to approval of the final dividend at the 2025 annual general shareholders' meeting (AGM) and completion of the Second 2024 Buyback Programme under the terms agreed by the board.

(M)Average number of shares is calculated on a monthly basis as the weighted average number of shares outstanding in the relevant year, net of treasury stock.

(N)

With regard to the remuneration policy against the 2022 earnings , the board continued the policy of allocating approximately 40% of the Group's underlying profit to shareholder remuneration, split in approximately equal parts in cash dividends and share buybacks.

Interim remuneration. On 27 September 2022, the board authorized the payment of an interim cash dividend against 2022 results of 5.83 euro cents per share (equivalent to approximately 20% of the Group's underlying profit in the first half 2022). The interim dividend was paid on 2 November 2022. The board also agreed to implement the First 2022 Buyback Programme worth approximately 979 million euros (approximately 20% of the Group's underlying profit in first half 2022) following the ECB approval on 17 November 2022. The First 2022 Buyback Programme was completed on 31 January 2023, and resulted in the acquisition of a total of 340,406,572 shares.

Final remuneration. On 27 February 2023, per the 202