On Asset Quality Review and stress test carried out by European Central Bank and European Banking Authority, Ana Botín, Santander Group Executive Chairman, said: "These results confirm Santander's low risk profile, based on a prudent risk policy, our geographic diversification and our retail and commercial business model focused on customers."

1. Comunicación Externa.
Ciudad Grupo Santander Edificio Arrecife Pl.2
28660 Boadilla del Monte (Madrid) Telf.: 34 91 289 52 11
comunicacionbancosantander@gruposantander.com
Web Corporativa: http://www.santander.com
Síguenos en Twitter: http://twitter.com/bancosantander
Santander News Group
Ana Botín, on AQR and stress test : “Results confirm Santander´s low risk profile”
Madrid, September 27th.-On Asset Quality Review and stress test carried out by European Central Bank and European Banking Authority, Ana Botín, Santander Group Executive Chairman, said: "These results confirm Santander's low risk profile, based on a prudent risk policy, our geographic diversification and our retail and commercial business model focused on customers."
AQR and stress test results´ release is the last step in the comprehensive and rigorous assessment of European banks before the ECB assumes responsibility for the supervision of Eurozone banks on 4 November.
The main results of these exercises are:
1. Asset Quality Review
• The AQR is a very exhaustive and detailed assessment of bank balance sheets with particular focus on credit and market risk.
• The adjustment required in Banco Santander’s provision levels resulting from this review is immaterial: Euro 200 million against the Group’s balance sheet of Euro 1.1 trillion. This is the lowest adjustment among our international peers and represents an impact of 0.04 percentage points on Banco Santander’s capital ratio.
• The non-performing loan ratio of the reviewed portfolios will increase 0.14 percentage points post-AQR, which shows that our coverage is appropriate and that we are classifying our risks correctly.
2. Stress Test:
• The stress test was applied to all countries where Banco Santander operates and covered a three-year period (2014 – 2016) under two scenarios, baseline and adverse (with the probability of the adverse scenario extremely low).
• As of December 31st 2016, Grupo Santander increases its capital ratio (CET1) by 1.6 percentage points in the baseline scenario, to 12%.

2. Comunicación Externa.
Ciudad Grupo Santander Edificio Arrecife Pl.2
28660 Boadilla del Monte (Madrid) Telf.: 34 91 289 52 11
comunicacionbancosantander@gruposantander.com
Web Corporativa: http://www.santander.com
Síguenos en Twitter: http://twitter.com/bancosantander
• In the adverse scenario, Santander is the bank with the lowest capital decrease among its international peers. The CET1 ratio would drop 1.4 percentage points, to 9%. This ratio is 3.5 percentage points above the required 5.5% minimum, which means that in this extreme scenario, Banco Santander would still exceed the required capital amount by close to EUR 20 billion.
- Relevant Fact