Company: BCDRF
Filing Date: 2025-07-01
Form Type: 6-K
Source: 0000950103-25-008246
Chunk: 4

Company: Banco Santander, S.A.
Filing Date: 2025-07-01
Form: 6-K
Chunk 4
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% Post integration

5 All - cash acquisition of TSB – Transaction highlights Acquisition of 100% of TSB ▪ £2.65 billion valuation in cash, on closing ▪ 9.8x consensus 2026 earnings, or c.5x post identified cost synergies ▪ 1.45x Q1’25 TNAV Transaction rationale ▪ In - market, low risk transaction with high cost - synergies ▪ Improves our franchise to Top 3 in Personal Current accounts (PCAs) in the UK ▪ Accelerates and enhances our returns in the UK ▪ In line with our capital allocation policy following a disciplined financial assessment Financial impacts ▪ 50bps Group CET1 impact at closing ▪ Return on invested capital of above 20% 2 ▪ EPS accretive from start, reaching c.4% accretion in 2028 ▪ UK RoTE to improve from 11% standalone in 2024 to 16% pro forma in 2028 Expected closing ▪ 1Q 26, subject to regulatory approvals and Sabadell shareholder approval Synergies ▪ Significant synergy potential compounded by One Transformation benefits ▪ At least £400mn pre - tax cost synergies, equivalent to around 13% of the combined cost base, 50% of standalone ▪ £520mn pre - tax restructuring costs 1 , equivalent to 1.3x cost synergies (1) Profits until closing stay with Sabadell (2) Including intangible amortization

6 TSB at a glance UK Retail focused bank ▪ With low - risk retail mortgages High quality deposit franchise ▪ Higher proportion of current accounts Limited scale benefits ▪ Small market shares Elevated cost income ratio ▪ Scope for efficiency gains £34bn Mortgage book >70% % of book with <70% LTV £35bn Customer deposits 1.5% Cost of deposits 2% PCA market share 2% Mortgage market share 12.5 % * RoTE 72% Cost income ratio Notes: Reported TSB banking group plc KPIs as of 2024, except RoTE which is 12 months to 1Q25 as per Sabadell 1Q presentation

7 Clear strategic and financial rationale for a high risk - adjusted return asset Strategic Opportunity to gain scale in a core market for Santander Complementary customer base and footprint High execution certainty given Santander’s operational track record Financial Significant cost synergies from operational overlap and One Transformation