Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 448

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 448
---
                                                                                        |     |                |     |                                                                                                                |     | Fully-loaded CET1          |     |          |
| The fully-loaded CET1 ratio increased 0.5 pp in the year to 12.8%, remaining above 12% in every quarter in 2024 |     |   |                            |     |                                                                                        |     |                |     | Strong organic generation driven by higher profit and risk transfer and balance sheet mobilization initiatives |     |                            |     |          |
|                                                                                                                 |     | % |                            |     |                                                                                        |     |                |     |                                                                                                                |     | Organic generation in 2024 |     | +209 bps |
|                                                                                                                 |     |   |                            |     |                                                                                        |     | TNAV per share |     |                                                                                                                |     |                            |     |          |
|                                                                                                                 |     |   |                            |     | The TNAV per share wasEUR 5.24, +14% year-on-yearincluding cash dividends paid in 2024 |     |                |     |                                                                                                                |     |                            |     |          |

Capital management and adequacy at Santander aims to guarantee solvency and maximize profitability, while complying with regulatory requirements and internal capital targets.

Capital management is a key strategic tool for decision-making at both the subsidiary and corporate levels.

We have a common framework that covers capital management actions, criteria, policies, functions, metrics and processes. We have a team in charge of our capital analysis, adequacy and management that coordinates with subsidiaries on all matters related to capital and monitors and measures shareholder returns.

Our most notable capital management activities are :

• Establishing capital adequacy and capital contribution targets that align with minimum regulatory requirements, internal policies and the budget, to 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, in addition to tracking businesses, portfolios and customers with profitability below the minimum target.

• Coordinating and promoting the bank’s asset mobilization plan (e.g