New capital requirements by EBA

RNS Number : 9552Q

Banco Santander S.A.

27 October 2011

MATERIAL FACT

With regard to the public announcement made early this morning by the European authorities regarding the new capital requirements of a temporary and extraordinary nature applicable to financial institutions, Banco Santander hereby reports that the additional capital required for Grupo Santander amounts to 6,474 million euros (after taking into account the obligatorily convertible bonds amounting to 8,497 million euros, which added to the aforementioned figure gives a total of 14,971 million euros, the same figure published by the press). The sovereign capital buffer is 2.607 million euros, regarding the 6,474 million euros.

As of 30^th September 2011, such additional capital requirements amounts to 5,224 million euros.

These figures are preliminary and indicative, being subject to changes on the final data base for September and will be reviewed by the supervisory authorities.

To address these new requirements, Banco Santander has today announced the measures resulting from the following table, comfortably exceeding the demands imposed by the European authorities as of 30^th June 2012, without needing to carry out any capital increase and maintaining its shareholder remuneration policy, which involves the distribution of 0.60 euros per share with respect to the 2011 financial year.

EUR million

September 2011 adjusted with EBA criteria	Generation 3 quarters: Q4'11 + H1'12	Roll-out of internal models	Ongoing Optimisation of RWA (internal projection)	June 2012 adjusted with EBA criteria
Deficit at 9% -5,224	+2,300	+1,700	+2,300	Surpluss at 9% +1,076
8.12%	+0.40%	+0.30%	+0.40%	9.22%
+110 b.p