Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 451

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 451
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 achieving our 2024 fully-loaded CET1 target of remaining above 12%.

At end 2025, we are targeting to reach a CET1 A ratio of 13%, above the 12% objective and at the top end of our 12-13% operating range. Additionally, the board of directors intends to return up to EUR 10 billion to our shareholders through share buybacks corresponding to 2025 and 2026 by combining: i) buybacks resulting from the application of our existing shareholder remuneration policy consisting of a c.50% pay-out ratio (distributed approximately equally between cash dividends and share buybacks); plus ii) additional buybacks to distribute excesses of our CET1. The implementation of the shareholder remuneration policy and any share buybacks to distribute CET1 surpluses are subject to future corporate and regulatory decisions and approvals.

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 its long-term sustainability and the efficient use of capital in the incentives of the Group's main executives. We considered certain aspects relating to capital management and returns when setting senior managers' 2024 variable remuneration including return on tangible equity (RoTE) and other relevant capital metrics (capital generation or CET1).

A. Phased-in CRR3.

Annual report 2024 424

| Contents |     | Business model and strategy |     | Sustainability statement |     | Corporate governance |     | Economic and financial review |     | Riskmanagement and compliance |

| Fully-loaded CET1 ratio |
| %                       |

| Regulatory phased-in CET1 ratioA |     |      |     |      |     |      |
| %                                |     |      |     |      |     |      |
|                                  |     | 12.2 |     | 12.3 |     | 12.8 |

| Main capital data and solvency ratios |     |              |      |         |     |      |         |     |            |      |         |     |      |         |
| EUR million                           |     |              |      |         |     |      |         |     |            |      |         |     |