Santander and its subsidiary Bank Zachodni WBK acquire Deutsche Bank’s retail banking business in Poland

Madrid, 14 December 2017 - PRESS RELEASE

Banco Santander S.A. (“Santander”) and its Polish subsidiary, Bank Zachodni WBK (“BZ WBK”), today announced that they have agreed to acquire the retail and private banking businesses from Deutsche Bank Polska, S.A. (excluding its foreign currency mortgage portfolio and including the shares of DB Securities, S.A. (Poland)) for an estimated total consideration of €305 million.

The acquisition will enhance BZ WBK’s position as the third largest financial institution in Poland, with 6.8 million customers and market share of more than 11.7% in loans and 11% in deposits. Furthermore, BZ WBK will become the leading private banking services provider in Poland.

The acquisition includes Deutsche Bank Polska’s retail and private banking business, SME business, asset management arm, and sales networks, with 113 branches and approximately 1,500 employees. The acquired business has €4,350 million in assets, with total loans of €4,300 million and customer deposits €2,505 million (at 30 June 2017)

Based on current figures¹, the integrated bank will have total assets of approximately €39.8 billion, with €30.3 billion in loans and €28.3 billion in customer deposits.

Banco Santander’s Executive Chairman, Ana Botín, said: “We have an outstanding business in Poland with the best mobile banking platform in the country. The Polish economy has been among the strongest in Europe and we see significant potential to grow our business further in the coming years. The acquisition enhances our position in important customer segments, such as private banking and SMEs, while also delivering strong returns for our shareholders.”

The deal, which is subject to regulatory and other approvals, is expected to close by the end of 2018. It is expected to deliver a return on investment of 15% by 2021 and have a positive impact on Santander’s earnings per share, with no material impact on Santander’s capital ratios.

About Bank Zachodni WBK

Bank Zachodni WBK is the third bank in the Polish banking sector. Since 2011, it has been part of the Santander Group. Bank Zachodni WBK Group includes among others: Santander Consumer Bank, BZ WBK Leasing, BZ WBK Factor and BZ WBK TFI. In total the Group serves 6.4 million customers across the country.

¹Figures for BZ WBK as of September 2017 and DB Polska figures as of June 2017

Ramiro Mato joins Banco Santander's Board and Executive Committee

• Matías Rodríguez Inciarte, named Chairman of Santander Universities and Vice Chairman of Universia and Isabel Tocino, appointed Vice Chairman of Santander Spain and Chairman of Banco Pastor, leave the board of Banco Santander.
• The Board agrees to allocate 600 million euros as a goodwill impairment and maintains its goal to increase dividend per share in 2017 and 2018; and earnings per share in 2017 and 2018, the latter by double digits.

Madrid, 28 November 2017 – PRESS RELEASE

Banco Santander's board of directors met today in Brazil, a country that contributes 26% of the Group's profits. During the meeting, the Board approved changes to its composition, as well as adjustments to the goodwill of the Group. The review of goodwill has resulted in an impairment of 600 million euros, which will not impact capital ratios. Despite these adjustments, Banco Santander maintains its goal to increase dividend per share in 2017 and 2018; and earnings per share in 2017 and 2018, the latter by double digits.

The Board has agreed to appoint Ramiro Mato as Independent Director, following the proposal made by the Appointments Committee and after receiving regulatory approval. He will also join the Board´s executive committee, as well as the Audit and the Risk Supervision, Regulation and Compliance Committees. His appointment will be subject to ratification at the next annual general meeting of Santander's shareholders.

Matías Rodríguez Inciarte and Isabel Tocino will leave the board of directors of Banco Santander to take on new roles. Matías Rodríguez Inciarte will become the Chairman of Santander Universities, replacing Rodrigo Echenique Gordillo, and Vice Chairman of Universia, reporting directly to Ana Botín. The Director of Santander Universities, Javier Roglá, will continue to have a double reporting line, as he has to date, both to the Chairman of Santander Universities and to the Group Executive Chairman, Ana Botín, for the development of strategic projects.

Once regulatory approval has been obtained, Isabel Tocino will become Vice Chairman of the Board of Santander Spain and Chairman of Banco Pastor, an entity that became part of the Santander Group as of 7^th June 2017, as a result of the acquisition of Banco Popular.

As a result of these changes, Banco Santander's board of directors will have 14 members, of which the majority (eight) are independent. The board of Santander is diverse in gender (more than a third are women), national origin (Spanish, British, American and Mexican) and has broad sector representation (finance, distribution, technology, infrastructure and academia).

Ana Botín, Executive Chairman of Banco Santander, said: “Ramiro Mato's membership of the board and its committees will add considerable value thanks to his broad finance and international banking management experience.” Ana Botin also thanked Matías Rodríguez Inciarte and Isabel Tocino for their contribution to the board. “In his extensive career, Matías has played an important role in the success story of the Bank. We will continue to draw on his expertise in Santander Universities, our flagship programme in helping communities prosper.” Ana Botín added “I am sure that Isabel's strength and dedication will be crucial for all of Santander Spain, especially in her new role as Chairman of Banco Pastor, which has an extensive presence in Galicia.”

Ramiro Mato (Madrid, 1952), graduated in Economics from the Complutense University of Madrid. He began working in banking in 1980 and, after carrying out several different roles in the public group Argentaria, joined BNP Paribas in 1993, where he has been serving as its highest ranking executive in Spain and Portugal for the last 20 years.

Review of goodwill

In accordance with its annual engagement plan and accounting standards, the Bank has carried out a review of its goodwill. Accordingly, an impairment will be taken for approximately 600 million euros, net of taxes, of which 500 million are a result of the review of the Group's investment in Santander Consumer USA Holdings Inc (SCUSA). The impairment for SCUSA is driven by a reduction in the company's earnings relative to prior years.

The impairment will be recognised in the Group's consolidated results for the fourth quarter of 2017 and will not have an impact on the Group's CET1 since goodwill is excluded from the CET1 calculation. At the close of the third quarter, Banco Santander's fully loaded CET1 was 10.80%.

Furthermore, Santander has updated the public information regarding two previously announced transactions that have an impact in the fourth quarter of 2017. On 21 November 2017 the Bank and its partners closed the sale of 100% of the share capital of Allfunds Bank, S.A., a transaction that forms part of the agreement reached on 16 November 2016 by the Bank to acquire from Warburg Pincus and General Atlantic the 50% of Santander Asset Management (SAM) that the Bank does not own. It is expected that this transaction will be completed before year-end.

The combined effect of the two transactions in the fourth quarter of 2017 will consume nine basis points of capital (CET1), including the effect of the net gain of 300 million euros obtained from the sale of the investment in Allfunds Bank.

Banco Santander reiterates its goal to increase dividend per share in 2017 and 2018; and earnings per share in 2017 and in 2018, the latter by double digits.

Santander named Global Bank of the Year by The Banker magazine

• The magazine also awarded Santander Bank of the Year in The Americas, Spain, Brazil, Portugal and Chile.
• The Banker highlighted its “fantastic profit growth” in Latin America, its “innovative use of technology” and the acquisition of Banco Popular.

Madrid, 30 November 2017 – PRESS RELEASE

Banco Santander has been named “Global Bank of the Year” by The Banker magazine in recognition of its “fantastic profit growth” in Latin America and its Brazilian operations in particular, its innovative use of technology to provide customers with products better suited to their needs” and the acquisition of Banco Popular, which reinforces its leading position in Spain.

At its annual banking awards ceremony in London, The Banker also named Santander Bank of the Year in the Americas and in four of its nine main countries: Spain, Brazil, Chile and Portugal.

This is the first time a Spanish Bank has won the global award since Santander last won the award in 2009, and it is the first time ever that Santander has been named Bank of the Year in Brazil by The Banker. Over the past decade, Santander Totta has won The Banker's top prize nine times and Santander Spain, five.

The magazine underscored the “new way of interacting with the bank” that it offers clients, often leveraging on the experience of other parts of the group to do so. Some “great” examples The Banker cites are Santander Plus in Mexico, based on the UK and Spain's 1|2|3 strategy, SuperDigital in Brazil and Work/Café in Chile.

Executive Chairman Ana Botín said: “Over the last three years we have made excellent progress in transforming Santander. At the base of this transformation is embedding a culture that is focused on doing things in a way that is simple, personal and fair, to earn the loyalty of millions of people and businesses. We have, we can and we will do more, but I am proud of what our teams have achieved, and receiving this award is a great testament to their efforts”.

Founded in 1926, The Banker is a unit of the Financial Times group of publications and is considered a leader in international banking and finance news. The Banker's prestigious annual survey of the Top 1,000 banking institutions is an industry standard and its “Bank of the Year” awards are a benchmark in international banking. The award winners are selected by the editors of The Banker on the basis of objective criteria, such as profitability, growth and efficiency, as well as subjective criteria that include strategy, leadership and innovation.

Banco Santander to sponsor UEFA Champions League

• The sponsorship agreement takes effect from next season (2018/19) and runs for three years.
• Santander has sponsored football competitions in Latin America and Spain for the last 10 years.
• The Bank concludes its partnership with Ferrari and F1.

Madrid, 29 November 2017 – PRESS RELEASE

Banco Santander will become an official sponsor of the UEFA Champions League. The agreement begins next season (2018/19) and runs for three years to 2020/21.

The UEFA Champions League is the world's most prestigious football club competition, with mass audiences in Santander’s main markets in Europe and the Americas. The UEFA Champions League final is also the most viewed annual sporting event, watched live by more than 160 million people. The competition has more than 100 million followers in social media.

Santander will have the rights to pitch-side and television advertising spots, as well as tickets, client hospitality events and other rights.

Banco Santander Executive Chairman, Ana Botín, and the country heads of Santander's ten main markets, signed the agreement in Brazil today alongside a UEFA representative. Two legends of football also participated in the event: Brazil’s Ronaldo who was there in person and Pelé who appeared via video.

Ana Botín said: “Santander's partnership with the UEFA Champions League, the world's most global and aspirational sporting competition, builds on our support of Libertadores and, more recently, Racing Santander, the local football team of the Cantabrian city where our bank was founded 160 years ago. We love sport. Our free-time exercise, which we do to challenge ourselves to be better, the weekend match we watch with family and friends, our loyalty to a club and the excitement of the spectacle. Ferrari and F1, to whom we are very grateful, have played an important role at Santander over the past 10 years. We will continue our support of sport because it is a valuable way to contribute to the prosperity of the communities where we work.”

Guy-Laurent Epstein, UEFA Events Marketing Director, said: “We're delighted to welcome Santander into the UEFA Champions League sponsor family and are excited to partner with one of the most distinguished and forward-thinking banks globally. There is natural fit between the UEFA Champions League and Santander, with the Bank being consistently recognised within the best global brands and, of course, with the UEFA Champions League Final remaining the most watched annual sporting event on the planet. The bank has a great heritage in sport and this partnership will allow the UEFA Champions League to further engage with football fans in Latin America and around the world.”

The sponsorship strengthens the Bank’s association with professional football, having supported several of the main football competitions for the past ten years in Latin America, including CONMEBOL Libertadores, and LaLiga Santander in Spain.

At the end of this year, Santander will conclude its successful sponsorship of the Formula 1 racing team, Scuderia Ferrari, which it has supported for the last eight seasons. The bank will also conclude its corporate sponsorship agreements with F1 which have helped increase Santander's brand recognition around the world over the last 11 years.

Banco Santander and Universia Foundation award 51 grants to Santander shareholders and their family members with disabilities

• Grants worth a total of EUR 35,000 will be provided for 51 disabled students.
• Santander shareholders and/or family members can access these grants through one of the Bank's activities.
• The grants will be for disabled students studying on graduate or post-graduate courses in Health Sciences, Environmental Sciences, Business and Social Sciences, Education and also branches of Information Technology (IT) and Engineering.

Madrid, 19 December 2017. SANTANDER NEWS.

Universia Foundation and Santander Shareholders and Investors Relations have concluded the ninth round of a specific grant programme that provides 51 grants to university students with disabilities who are Santander shareholders or the relatives of Santander shareholders through an action.

The programme, which broke the record for candidates this year with 129 applications compared to the 92 recorded in 2016, is aimed at students enrolled in undergraduate or postgraduate degrees related to Health Sciences, Economic Sciences, Environmental Sciences, Computer Sciences, foreign language teaching, as well as Engineering and Information Technology (IT) studies.

This year, the grants have been awarded to 50 university students who will study at public and private Spanish universities during the 2017–2018 academic year, in cities such as Barcelona, Bilbao, La Rioja, Madrid, Malaga, Salamanca, Santiago de Compostela, Valencia and Zaragoza. Grant number 51 goes to the only student who will undertake their studies abroad, studying a Master's Degree in Business Informatics at Johannes Kepler University in Linz (Austria).

In search of happiness

Her name is Eva Rivera and her is one of the 51 talent stories found in this round of grants. She is studying a Master's in Applied Neuro-happiness (Neurofelicidad Aplicada) at the Universitat de València, University-Business Foundation of the University of Valencia (ADEIT). Her aim is to improve daily life in businesses, so that, as she points out, "their productivity may be considerably increased by making professionals happier in their working environment, through involving the Human Resources department".

With this objective, Eva has focussed her training on the scientific advances in neuroscience and especially on the stimuli that produce happiness in people, which can be applied in a business environment by means of a win-win method. She mentions that "the grant is a boost to supplement my training and help me continue investigating the human brain".

The Universia Foundation is a private not-for-profit entity driven by Universia, the largest university network in the world, comprised of 1,341 universities in 23 countries, whose activities are sponsored by Banco Santander through Santander Universities. Established in 2005 as the only Third Sector entity specialising in universality and disability. Its main purpose is to promote inclusive higher education and access to skilled employment for people with disabilities. It has been a placement agency since 2012. Of an international nature, the entity has signed the UN Global Compact and is committed to complying with its principles.

Banco Santander is firmly committed to the communities where it operates. In 2016, the Bank invested EUR 209 million into social projects—of which EUR 157 million went to higher education with more than 1,100 agreements with academic institutions—and EUR 52 million into community support programmes. In 2017, Santander was once again on the Dow Jones Sustainability Index (DJSI), positioned as one of the 10 banks most valued around the world for their sustainable management for the second year running, according to this index, of which it has formed a part since 2000. It has also been on the FTSE4Good Index since 2003. More information here.

Information about the grants can be found at www.fundacionuniversia.net/ix-convocatoria-becas-fundacion-universia-capacitas-accionistas/