Company: BCDRF
Filing Date: 2025-03-03
Form Type: 6-K
Source: 0000891478-25-000057
Chunk: 137

Company: Banco Santander, S.A.
Filing Date: 2025-03-03
Form: 6-K
Chunk 137
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ices |

8.2. Capital requirements for Operational Risk This section covers the letter (b) of the qualitative requirement ORA - Qualitative information on operational risk. Santander uses the standardised approach to calculate the capital requirements for operational risk, as established in the CRR. The resolution was taken by the Board of Directors on 22nd June 2007 and reported to Banco de España's general supervisory department by the second vice chairman and chief executive officer on 29th June 2007. Under the standardised approach, capital requirements are calculated on the basis of relevant income, which is defined as the sum of the following components of the income statement: • Interest and similar income • Interest expense and similar charges • Income from equity instruments • Fee and commission income • Fee and commission expense • Trading gains (net) • Exchange differences (net) • Other operating income (earnings) The CRR also defines the following segmentation of business lines for this method: • Corporate finance • Trading and sales • Retail brokerage • Commercial banking • Retail banking • Payment and settlement • Agency services • Asset management Relevant income Under the standardised approach, capital requirements are calculated as the simple average over the last three years of the aggregation, for each year, of the greater of zero or the sum of relevant income across each of the business lines, multiplied by the weight assigned to each business line. The mathematical expression of these requirements is as follows:

Where: RI1-8 = Relevant income of each business line, with the appropriate sign, in accordance with the CRR. ß1-8 = Weight applicable to each business line, in accordance with the CRR. The Financial Accounting and Control division is responsible for obtaining data on relevant income, allocating it to the various business lines and calculating the capital requirements. Santander obtains the figure for relevant income from the consolidated management information by business line. This information is generated from accounting information. Consolidated management information is published quarterly in aggregate form and is the basis on which the budgetary compliance of the businesses is measured. This is prepared by the Management Control area, which regulates the business lines of all the group's units based on corporate criteria, which all units must apply when drawing up their management information. The following chart shows the distribution of capital by business line at 31st of December 2024.

| Capital distribution by business line |

| n |     | Retail Banking     |     | 64% |
| n |     | Commercial Banking |     | 32% |
| n |     |