Company: BCDRF
Filing Date: 2025-03-03
Form Type: 6-K
Source: 0000891478-25-000057
Chunk: 29

Company: Banco Santander, S.A.
Filing Date: 2025-03-03
Form: 6-K
Chunk 29
---
 achieved with this function: comply with the subsidiary’s financial autonomy while at the same time retaining coordinated monitoring at group level.

#### 2.2.2. Capital governance
Santander developed a structure of agile and efficient governing bodies, ensuring that the Capital function operates properly when it comes to decision-making and supervision and control. This ensures involvement of all relevant business areas and involvement of senior management as necessary.

Santander's characteristic subsidiary-based structure has a strong capital governance with various committees with not only responsibilities at local level but also responsibility for coordination at Group level. The local committees have to report to the corporate committees in due time and proper form on any relevant aspects of their activity that may affect capital, to ensure proper coordination between the subsidiaries and the Corporate Centre.

32 2024 Pillar 3 Disclosures Report

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

#### 2.2.3. Capital targets
The bank is pursuing a return on tangible equity (RoTE) of 15-17% in the current 3-year strategic plan (2023-2025), while delivering double-digit growth through the cycle in tangible net asset value per share plus dividend per share through the cycle. The group’s key financial and commercial goals include:

• Increasing the shareholder payout policy (the proportion of profit distributed to shareholders) from c.40% to c.50% in

2023-2025 through both cash dividends and share buybacks.

• Achieving a return on tangible equity of 15-17% in 2023-2025 and an efficiency ratio of c.42% by 2025.

• Maintaining a fully-loaded CET1 above 12%.

• Delivering double-digit average growth through the cycle in tangible net asset value (TNAV) per share plus dividend per share through the cycle - a key measure of value creation.

We continue to focus on disciplined capital allocation and shareholder remuneration after achieving our 2024 fully-loaded CET1 target of remaining above 12%.

Continuous improvement of our capital ratios reflects our profitable growth strategy and a culture of active capital management at all levels.

The Capital and Profitability Management team is in charge of our capital analysis, adequacy and management, coordination with subsidiaries on all matters related to capital and monitoring and measuring returns.

Every country and business unit has drawn up individual capital plans that focus on maximizing return on equity.

Santander places high value on