H1'22 Financial Results and PagoNxt Highlights
Capital
Strong fundamentals for AT1 bond holders
Distance to
trigger¹
▸ Santander Group's CET1 levels are well above the minimum loss absorption trigger of 5.125%: €43bn.
▸ The first line of defense is the Group's strong pre-provision profitability providing a high capacity to absorb provisions
during the crisis and should continue to underpin the Group's earnings generation capacity.
▸ As of Jun-22, the distance to the MDA is 3.07%².
MDA
▸ Targeting a comfortable management buffer, in line with Santander's business model and predictable results.
▸ Santander Parent Bank has c. €57bn in Available Distributable Items, best-in-class.
ADIS
▸ This amount of ADI represents c.120 times the full Parent AT1 cost budgeted for 2022.
▸ Santander has never been prohibited from making a Tier 1 payment or dividend due to insufficient ADIs. Santander has
never cancelled the payment of coupons of any of its Tier 1 securities.
Santander
(1) CET1 level below which AT1 capital instruments must either convert into ordinary shares or have their principal about written down.
(2) MDA trigger = 3.40% -0.33% = 3.07% (33bps of AT1 shortfall is covered with CET1).
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