TOTAL SHAREHOLDER REMUNERATION CHARGED TO 2018 INCOME

euro cents/share

The fourth and final dividend charged to 2018 income was paid in cash in May, equivalent to 6.5 euro cents per share.

Total shareholder remuneration for 2018 was therefore 23 euro cents per share, a 4.5% increase compared to 2017.

The distribution of dividends was as follows:

First dividend

6.5

euro cents/share

Cash payment
in August 2018.

Second payment

3.5

euro cents/share

Paid in November 2018 through
the Santander Scrip Dividend Scheme.

Third dividend

euro cents/share

Cash payment
in February 2019.

Fourth dividend

euro cents/share

Cash payment
in May 2019.

This puts the average dividend yield, taking the average share price for 2019, at

TOTAL SHAREHOLDER REMUNERATION CHARGED TO 2019 INCOME

The board expects to announce the 2019 interim dividend after its meeting in September

Targeted pay-out
40-50%

2 payments

Expected announcement
of the interim dividend
in September 2019

In order to align us with the current comparable practices in Europe, the board's target is to:

Maintain in the medium term a pay-out ratio of 40-50%, up from the current 30-40%.
Ensure that the cash dividend is at least the same as last year.
Make two payments charged to 2019 income as announced at the 2018 annual general meeting.