Results of stress test

RNS Number : 3072V

Banco Santander S.A.

26 October 2014

 

MATERIAL FACT

With respect to the asset quality review (AQR) carried out by the European Central Bank and the European Banking Authority, Banco Santander hereby announces:

·     That such review, carried out with reference to December 2013, has affected 16 portfolios in 7 countries, accounting for more than 50% of the Group's risk assets.

·     That the adjustment in Group Santander's provision levels resulting from this review is immaterial, as it amounts to Euro 200 million, whilst the Group's balance amounts to Euro 1.1 trillion.  This adjustment represents an impact of 0.04 percentage points on Grupo Santander's capital ratio. The non performing loan ratio of the reviewed portfolios increases 0.14 percentage points post-AQR, which shows that coverage is appropriate and that risks are correctly classified. 

Furthermore, with respect to the stress test applied to all countries where the Group operates and which covers a three-year period (2014 - 2016) with two scenarios (base and adverse), the results were as follows:

·     As of December 31st 2016, Grupo Santander increases its capital ratio (CET1) by 1.6 percentage points in the base scenario, to 12%.

·     In the adverse scenario, the CET1 ratio drops 1.4 percentage points, to 9%. Such ratio is 3.5 percentage points above the required minimum, meaning that in this scenario, Grupo Santander would exceed the required capital amount by close to Euro 20,000 million.

Boadilla del Monte (Madrid), October 26, 2014

 

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