ECB keeps P2R at 1.74%; 2026 total capital min 14.11% at SAN
Rhea-AI Filing Summary
Banco Santander (SAN) reported updated ECB capital requirements following SREP. The Pillar 2 requirement remains unchanged at 1.74% at the consolidated level, with at least 0.98% to be covered with CET1; 9 bps of P2R reflect the ECB’s calendar provisioning add-on for non‑performing loans. From 1 January 2026, minimum consolidated requirements rise by 20 bps to CET1 9.85% (from 9.65%) and Total Capital 14.11% (from 13.91%), driven by a 3 bps increase in the systemic risk buffer and 17 bps in the countercyclical buffer.
As of 30 September 2025, Santander reported a consolidated CET1 ratio of 13.09% and Total Capital of 17.43%, indicating a surplus over the new minimums.
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FAQ
What capital requirement did the ECB set for Banco Santander (SAN) from January 1, 2026?
Did the ECB change Santander’s Pillar 2 requirement (P2R)?
How much did the minimum requirements increase versus 2025?
What drove the 20 bps increase for Santander?
What are Santander’s current capital ratios versus the new minimums?
Is there any special add-on in the P2R?
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of October, 2025
Commission File Number: 001-12518
Banco Santander, S.A.
(Exact name of registrant as specified in its charter)
Ciudad Grupo Santander
28660 Boadilla del Monte (Madrid) Spain
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
| Form 20-F | X |
Form 40-F |
Banco Santander, S.A.
TABLE OF CONTENTS
Item |
|
| 1 | Report of Other Relevant Information dated October 30, 2025 |
Item 1
Banco Santander, S.A., ("Santander") communicates the following:
OTHER RELEVANT INFORMATION
Santander has been informed by the European Central Bank (“ECB”), after following its Supervisory Review and Evaluation Process (“SREP”), of its decision regarding the minimum prudential capital requirements effective as of 1 January 2026.
The ECB’s decision maintains an unchanged Pillar 2 requirement (“P2R”) of 1.74% at a consolidated level, of which at least 0.98% must be covered with Common Equity Tier 1 capital (“CET1”). 9 basis points of P2R reflect the capital add-on due to the ECB’s prudential expectations on calendar provisioning in connection with non-performing loans.
The following table shows the minimum CET1 and total capital requirements applicable at the consolidated level as of 1 January 2025 and as of 1 January 2026, as well as Santander's ratios1 as of 30 September 2025:
| Minimum Requirement | Data | |||
| As of 01/01/2025 | As of 01/01/2026 | As of 30/09/2025 | ||
| CET1 | 9.652% | 9.85%3 | 13.09% | |
| Total Capital | 13.912% | 14.11%4 | 17.43% | |
The increase in the minimum requirements applicable both to CET1 and total capital as of 1 January 2026, compared to those in force since 1 January 2025, amounts to 20 basis points. This increase is due to changes in the systemic risk buffer requirement (3 basis points) and the countercyclical capital buffer requirement (17 basis points)3.
As described in the table above, Santander maintains a surplus of capital over these requirements, both in CET1 and total capital terms.
Boadilla del Monte (Madrid), 30 October 2025
IMPORTANT INFORMATION
Not a securities offer
This document and the information it contains does not constitute an offer to sell nor the solicitation of an offer to buy any securities.
Past performance does not indicate future outcomes
Statements about historical performance or growth rates must not be construed as suggesting that future performance, share price or results (including earnings per share) will necessarily be the same or higher than in a previous period. Nothing in this document should be taken as a profit and loss forecast.
______________________
1 Phased-in ratios.
2 Requirements as of 1 January 2025 considering final figures as of 31 December 2024.
3 The minimum requirement ratio of CET1 at consolidated level consists of: (a) the minimum capital requirement of Pillar 1 (4.50%), (b) P2R (0.98%), (c) the capital conservation buffer (2.50%), (d) the requirement arising from the consideration of Santander as Other Systemically Important Institution (“OSII”), which has been fixed by Banco de España effective on 1 January 2026 (1.25%), (e) the systemic risk buffer requirement (0.0628%) calculated as of 30 September, and (f) the countercyclical capital buffer requirement (0.4331%) estimated as of 30 September, which must be increased from 1 October 2025 as a result of the activation of 0.50% over the exposures located in Spain (0.12%), and again from 1 October 2026, due to an additional increase of 0.50% over such exposures.
4 In addition to the CET1 requirement, the minimum total capital requirement at consolidated level includes: (i) Pillar 1 requirements of Additional Tier 1 (1.5%) and Tier 2 (2%), and (ii) part of the P2R requirements which can be covered by Additional Tier 1 and Tier 2 (0.33% y 0.44%, respectively), remaining unchanged with respect to the minimum requirement applicable as of 1 January 2025, save for the CET1 increase of 20 basis points specified above.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Banco Santander, S.A. | |||||
| Date: | October 30, 2025 | By: | /s/ Pedro de Mingo Kaminouchi | ||
| Name: | Pedro de Mingo Kaminouchi | ||||
| Title: | Head of Corporate Compliance | ||||