Repurchase of Preference Shares

RNS announcement

To: The London Stock Exchange

Company Announcements Department

Santander UK plc

£300,002,000 Series A Fixed/Floating Rate Non-Cumulative Callable Preference Shares

ISIN: XS0502105454 (the "Preference Shares")

Santander UK plc has purchased in the market value 16 December, 2014£265,069,000 of the above Preference Shares leaving £34,933,000 in issue.

The purchased Preference Shares will be cancelled.

- ENDS -

Additional information about Santander UK and Banco Santander

Banco Santander (SAN.MC, STD.N, BNC.LN) is a retail and commercial bank, based in Spain, with a presence in 10 main markets. Santander is the largest bank in the euro zone by market capitalization. Founded in 1857, Santander had EUR 1.34 trillion in managed funds, 107 million customers, 13,225 branches - more than any other international bank - and 183,648 employees at the close of June 2014. It is the largest financial group in Spain and Latin America. It also has significant positions in the United Kingdom, Portugal, Germany, Poland and the northeast United States. In the first half of 2014, Santander registered EUR 2.756 billion in attributable profit, an increase of 22% from the same period of the previous year.

Santander UK is a leading financial services provider in the UK and offers a wide range of personal and commercial financial products and services. As at 30 September 2014, Santander UK serves more than 14 million active customers with c. 20,000 employees and operates through some 940 branches and 58 regional Corporate Business Centres.

Banco Santander, S.A. has a standard listing of its ordinary shares on the London Stock Exchange and Santander UK continues to have its preference shares listed on the London Stock Exchange.