Company: BCDRF
Filing Date: 2025-07-01
Form Type: 6-K
Source: 0000950103-25-008240
Chunk: 2

Company: Banco Santander, S.A.
Filing Date: 2025-07-01
Form: 6-K
Chunk 2
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ander announced that it intended to distribute in early 2026 50% of the capital released from that disposal upon completion, equivalent to approximately €3.2 billion of share buybacks as part of the referred additional buybacks. The execution of the shareholder remuneration policy and share buybacks to distribute the excess CET1 capital is subject to corporate and regulatory approvals.

| Corporate Communications                            
 Ciudad Grupo Santander, edificio Arrecife, planta 2 
 28660 Boadilla del Monte (Madrid).                  
 comunicacion@gruposantander.com                     
 www.santander.com - Twitter: @bancosantander        | 1 |

When combined, the two banks would serve nearly
28 million retail and business customers nationwide, giving TSB customers access to Santander’s international network and allowing
them to benefit from the group’s leading technology platforms.

Clear path to value creation

The combination of the two high quality franchises
would deliver substantial value to Santander shareholders through increased in-market scale, greater access to low-risk mortgages and
high-quality deposits, and operational efficiencies. The combined businesses would have a loan-to-deposit ratio of 107% versus 108% for
Santander UK currently.

The deal would generate a return on invested capital
of over 20% and bring the business closer to Santander UK’s productivity and efficiency standards. When coupled with our transformation
plans for Santander UK, it is expected the integrated business’s return on tangible equity would increase from 11% in 2024 to 16%
by 2028.

The transaction is expected to generate cost synergies
of 13% of the combined business’s cost base, equivalent to at least £400million pre-tax.
To deliver these synergies, Santander expects to incur £520 million of pre-tax restructuring costs during 2026 and 2027.

At Santander group level, the transaction would
be accretive to earnings per share from the first year and of c.4% by 2028 and consume approximately 50 basis points of CET1 capital.
Santander is expected to operate with an approximately 13% CET1 ratio at year-end 2025 on a pro forma basis for both the sale of 49% of
Santander Polska and associated share buyback in early 2026 announced on 5 May 2025, and the acquisition of TSB.

The transaction is consistent with Santander’s
strict capital hierarchy and will not affect the existing distribution