Glossary

2

2018 AGM

Our annual general shareholders’ meeting held on 23 March 2018

2019 AGM

Our annual general shareholders’ meeting that has been called for 11 or 12 April 2019, at first or second call respectively

A

Active customer

Those customers who comply with balance, income and/or transactionality demanded minimums defined according to the business area

AGM

Annual General Shareholders´ meeting

ALCO

Asset-Liability Committee

AML

Anti -money laundering

AORM

Advance Operational Risk Management

ARM

Advance Risk Management

ASF

Available Stable Funding

ASR

Recovered write-of assets (Activos en suspenso recuperados)

AT1

Additional Tier 1

ATF

Anti-terrorist financing

ATM

Automated teller machine

AVAs

Additional Valuation Adjustments

B

Banco Popular/Popular

Banco Popular Español, S.A., a bank whose share capital was acquired by Banco Santander, S.A. on 7 June 2017 and was merged into Santander in September 2018

Basel or Basel Committee

The Basel Committee on Banking Supervision

BAU

Business as usual

BCMS

Business Continuity Management System

bps

basis points

BRRD

Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment frms, as amended from time to time

BSI

Banco Santander International

BSPR

Banco Santander Puerto Rico

C

C&C

Compliance and Conduct

CAF

Development Bank of Latin America

CAGR

Compound annual growth rate

CAP

Maximum nominal amount of a risk operation, excluding market transactions

CCO

Chief Compliance Officer

CCoB

Capital Conservation Bufer

CCP

Central Counterparties

CCPS

Contingent Convertible Preferred Securities

CCSM

Code of Conduct in Securities Markets

CDS

Credit Default Swaps

CEB

Council of Europe Development Bank

CEO

Chief Executive Officer

CER

Credit equivalent risk

CET 1

Core equity tier 1

CNMV

Spanish National Securities Market Commission (Comisión Nacional del Mercado de Valores)

Corporate Centre

Our headquarters in Boadilla and business segment as described in section 4.1 ‘Description of businesses’ in the Economic and financial review chapter.

Corporation

All the governing bodies, organisational structures and employees entrusted by Banco Santander, S.A. to exercise oversight and control across the entire Group, including those functions typically associated with the relationship between a parent company and its subsidiaries.

COSO

Committee of Sponsoring Organisations of the Tradeway Commission

CRD

IV package The prudential framework established by the CRD and CRR currently in force

CRE

Credit Risk Equivalent

CRO

Chief Risk Officer

CRR

Regulation (EU) 575/2013 on prudential requirements for credit institutions and investment firms, as amended from time to time

CRS

The Common Reporting Standard approved by the OECD Council on 15 July 2014

CSA

Credit Support Annex

CVA

Credit Valuation Adjustment

D

D&I

Diversity & inclusion

DI

Debt to Income

Digital customers

Every consumer of a commercial bank’s services who has logged on to their personal online banking and/or mobile banking in the last 30 days.

Dodd-Frank Act

The US Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010

DRA

Documento de Registro de Acciones or Share Registration Document

DVA

Debt Valuation Adjustment

E

EAD

Exposure at Default

EBA

European Banking Authority

EBRD

European Bank for Reconstruction and Development

ECB

European Central Bank

EIB

European Investment Bank

EMIR

Regulation (EU) 648/2012 on OTC derivatives, central counterparties and trade repositories, as amended from time to time

EP

Equator Principles

EPS

Earnings Per Share

ERC

Executive Risk Committee

ES

Expected Shortfall

ESG

Environmental Social and Governance

ESMA

European Securities and Markets Authority

ETF

Exchange Traded Funds

EU

European Union

EVE

Economic Value of Equity

EWIs

Early Warning Indicators

F

FATCA

Foreign Account Tax Compliance Act

FATF

Financial Action Task Force

FCA

Fiat Chrysler Automobiles

FED

Federal Reserve

FL CET1

Common Equity tier 1 fully loaded / Fully loaded CET1

FRA

Forward Rate Agreements

FX

Foreign Exchange

G

G-SIB

Global Systematically Important Banks

GCCO

Group Chief Compliance Officer

GCRO

Group Chief Risk Officer

GDP

Gross Domestic Product

GDPR

General Data Protection Regulation

GMRA

Global Master Repurchase Agreement

GPG

Gender pay gap

GPTW

Great Place to Work

GRI

Global Reporting Initiative

GSM

General shareholders’ meeting

H

HR

Human Resource

I

ICAAP

Internal Capital Adequacy Assessment Proc

ICAC

Spanish Instituto de Contabilidad y Auditoría de Cuentas

ICFR

Internal control over financial reporting

ICM

Internal control model

IFC

International Finance Corporation

IFRS

International Financial Reporting Standards (IFRS) as adopted in the EU pursuant to Regulation (EC) 1606/2002 on the application of international accounting standards, as amended from time to time

IFRS9

International Financial Reporting Standards

ILAAP

Internal Liquidity Adequacy Assessment Process

IMF

International Monetary Fund

IRC

Incremental Risk Charge

IRRBB

Interest Rate Risk in the Banking Book

ISMA

International Securities Market Association

IT

Information technology

L

LCR

Liquidity Coverage Ratio

LGD

Loss Given Default

Loyal customers

Active customer who receive most of their financial services from the Group according to the commercial segment that they belong to. Various engaged customer levels have been defined taking profitability
into account.

LTV

Loan to Value

M

MiFID 2

Markets in Financial Instruments Directive

MREL

Minimum requirement for own funds and eligible liabilities which is required to be met under the BRRD

MRM

Model Risk Management

MtM

Mark-to-Markets

N

NAFTA

North American Free Trade Agreeement

NGO

Non-governmental organisation

NII

Net Interest Income

NPAs

Non-productive assets

NPLs

Non-performing loans

NSFR

Net stable funding ratio

NYSE

New York Stock Exchange

O

OFAC

Office of Foreign Assets Control

OM

Organised Markets

ONP

Ordinary net profit

OR

Operational risk

ORX

Operational Risk Exchange

OSLA

Overseas Securities Lender’s Agreement

OTC

Over the counter

P

P&L

Profit and Loss

PD

Probability of Default

People supported in our communities

The Bank has devised a corporate methodology tailored to Santander’s requirements and specific model for contributing to society. This methodology identifies a series of principles, definitions and criteria to allow the Bank to consistently keep track of those people who have benefited from the programmes, services and products with a social and/or environmental component promoted by the Bank. This methodology has been reviewed by an external auditor.

PMO

Project management office

POCI

Purchased or Originated Credit Impaired

POS

Point of sale

PPNR

Pre-Provisions Net Revenue

PRI

Principles for responsible Investment

PRIIPS

Regulation 1286/2014 on key information documents for packaged retail and insurance-based investment products, as amended from time to time

PSD2

Payment Services Directive II

PwC

PricewaterhouseCoopers Auditores, S.L.

R

R&D&i

Research, development and innovation

RAF

Risk appetite framework

RAS

Risk Appetite Statement

RBSCC

Responsible banking, sustainability and culture committee

RCC

Risk Control Committee

RCSA

Risk control self-assessment

RDA

Risk Data Aggregation

RIA

Risk Identification and Assessment

RoA

Return on assets

RoE

Return on equity

RoRAC

Return on risk adjusted capital

RoRWA

Return on risk weighted assets

RoTE

Return on tangible equity

RRF

Risk Reporting Framework

RSF

Required Stable Funding

RWAs

Risk weighted assets

S

S&P 500

The S&P 500 index maintained by S&P Dow Jones Indices LLC

SAM

Santander Asset Management

Santander Consumer US

Santander Consumer USA Holdings Inc.

SBNA

Santander Bank N.A.

SCAN

Santander Customer Assessment Note

SCF

Santander Consumer Finance

SCIB

Santander Corporate & Investment Banking

SCPs

Strategic commercial plans

SCUSA

Santander Consumer US

SDG

Sustainable Development Goals

SEC

Securities and Exchanges Commission

SHUSA

Santander Holdings USA, Inc.

SIS

Santander Investment Securities

SMEs

Small or medium enterprises

SOX

Sarbanes-Oxley Act of 2002

Spanish Companies Act

Spanish companies act approved by Royal Decree Law 1/2010, as amended from time to time

Spanish Securities Markets

Spanish securities markets act approved by Royal Decree Law 4/2015, as amended from time to time

SPF

Simple, Personal and Fair

SRB

European Single Resolution Board

SREP

Supervisory Review and Evaluation Proccess

SRF

Single Resolution Fund

SRI

Socially Responsible Investment

SRT

Significant Risk Transfer

SSM

Single Supervisory Mechanism, the system of banking supervision in Europe. It comprises the ECB and the national supervisory authorities of the participating countries.

STEM

Science, Technology, Engineering and Mathematics

T

T2

Tier 2

TCFD

Task Force on Climate-related Financial Disclosures

TF

Terrorist financing

TLAC

The total loss absorption capacity requirement which is required to be met under the CRD V package

TNC

The Nature Conservancy

TOM

Target Operational Model

TSR

Total Shareholder Return

U

UHNW

Ultra High Net Worth

UK

United Kingdom

UN SDG

United Nations Sustainable Development Goals

UNEP FI

United Nations Environmental Program Financial Initiative

US

United States of America

V

VaE

Value at Earnings

VaR

Value at Risk

Volcker Rule

Section 619 of the Dodd-Frank Act

VRAC

Vendor Risk Assessment Centre

W

WBCSD

World Business Council for Sustainable Development

Wolfsberg group

Association of thirteen global banks which aims to develop frameworks and guidance for the management of financial crime risks