Company: BCDRF
Filing Date: 2025-03-03
Form Type: 6-K
Source: 0000891478-25-000057
Chunk: 31

Company: Banco Santander, S.A.
Filing Date: 2025-03-03
Form: 6-K
Chunk 31
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 guarantee robust capital levels consistent with our risk profile and efficient use of capital.

• Drawing up a capital plan to meet our strategic plan objectives.

• Monitoring the capital ratio in both regulatory and economic terms and the efficient capital allocation to country units and global businesses. Assessing capital adequacy to ensure the capital plan is consistent with our risk profile and risk appetite framework in baseline and stress scenarios.

• Integrating capital metrics into businesses' management ensuring alignment with the Group’s objectives. Continuously monitoring stock and new business profitability as well as new business pricing at the country unit, global business, segment and customer levels. Tracking businesses, portfolios and customers with profitability below the minimum target.

• Coordinating and promoting the bank’s asset mobilization plan (e.g. securitizations, guarantees, sales).

• Preparing internal capital reports, and reports for the supervisory authorities and the market (ICAAP, Pillar 3 reports and stress tests).

• Planning and managing other loss-absorbing instruments other than regulatory capital instruments.

| Santander's capital function target:                                                                            |     |                                                                          |     |                                                                                                                                                |
| Capital allocation                                                                                              |     | Maximize profitability in the economic cycle                             |     | Shift towards a fee-based,                                                                                                                     
 capital-light model                                                                                                                            |
| Capital allocation based onshareholder value creationby measuring profitability on a full cost allocation basis |     | Sustainprofitability improvementsin achanging macro-economic environment |     | Embrace a fee-based,capital-lightmodel, given intense competition from peers operating withlighter capital modelswith more competitive pricing |

34 2024 Pillar 3 Disclosures Report

| Index |     | Introduction |     | Capital |     | Risks |     | Risk taker's remunerations |     | Appendices |

2.3.1. Santander Global Asset Desk

| Santander has shifted to a capital-light model to improve its ability to generate free capital. In this regard, it is key to actively manage not only the capital allocated to new origination but also the stock to improve capital management of less profitable assets.                                                                       |     | In addition, the Global Asset Desk analyses the balance sheets of the Group's entities, together with the different units, identifying those risk transfer opportunities that may be attractive to investors, and assists the units in their execution through different strategies such as securitizations, asset sales, guarantees and other products. |
| By mid-2023, Banco Santander's board of directors approved the creation of the “