Company: BCDRF
Filing Date: 2025-05-05
Form Type: 6-K
Source: 0000950103-25-005720
Chunk: 1

Company: Banco Santander, S.A.
Filing Date: 2025-05-05
Form: 6-K
Chunk 1
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 upon completion to accelerate its planned share buybacks, equivalent to approximately €3.2 billion2, 
 with potential to exceed the previously announced share buyback target, subject to regulatory approval.               |

Madrid, 5 May 2025 - PRESS RELEASE

Banco Santander has agreed to sell to Erste
approximately 49% of Santander Polska's share capital for €6.8 billion and 50% of the Polish asset management business (TFI) that
Santander Polska does not own for €0.2 billion, for a total consideration of €7 billion, subject to customary conditions including
regulatory approvals.

The all-cash transaction at 584 zlotys per share
values the bank at 2.2 times first quarter 2025 tangible book value per share, excluding the declared dividend of 46.37 zlotys per share,
and 11 times its 2024 earnings. It also represents a premium of 7.5% versus Santander Polska’s closing price on 2 May 2025, excluding
the dividend, and 14% versus the six-month volume-weighted average price. Santander Polska’s shares will trade ex-dividend on
12 May 2025.

Following the transaction, Santander will own
c.13% of Santander Polska and plans to take full ownership of Santander Consumer Bank Polska before closing by acquiring the 60% stake
owned by Santander Polska.

1 Including the Polish Financial Supervision Authority (KNF).

Corporate Communications
Ciudad Grupo Santander, edificio Arrecife, planta 2
28660 Boadilla del Monte (Madrid).
comunicacion@gruposantander.comwww.santander.com - Twitter: @bancosantander

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Upon completion, which is expected around the
end of 2025, the transactions are expected to result in a net capital gain of approximately €2 billion for Santander, increasing
CET1 ratio by c.100 basis points, equivalent to around €6.4 billion, and result in a pro forma CET1 ratio of around 14%.

Strategic cooperation

In addition to the acquisition, Santander and
Erste are also announcing a strategic cooperation to leverage each firm's strengths and footprint in Corporate & Investment Banking
(CIB) and to allow Erste to gain access to Santander’s payments platforms, aligning with Santander’s strategy