Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 837

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 837
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 |      | 221,566 |         |     | 20,445 |         |     | 3,059 |         |     | 245,070 |       |
| Loan-loss reservesC                      |     |      |     166 |         |     |    529 |         |     |   337 |         |     |   1,032 |       |

A. Detail of credit quality ratings calculated for Group management purposes.

B. Total exposure includes loan balances (drawn amounts) and off balance (letters of credit + guarantees) and excludes REPOs, FV portfolio, trading portfolio and undrawn commitments.

C. Includes provisions for undrawn authorized lines (loan commitments).

For the estimation of expected losses, prospective information is taken into account. Specifically, Santander UK considers fourmacroeconomic scenarios, which are updated periodically. The evolution forecasted in 2024 for the next five yearsof the main macroeconomic indicators used by Santander UK to estimate expected losses is presented below:

|                      |     | 2025 - 2029 |      |                        |     |     |                        |     |     |               |     |     |                     |
| Variables            |     |             |      | Pessimistic scenario 2 |     |     | Pessimistic scenario 1 |     |     | Base scenario |     |     | Optimistic scenario |
| Interest rate        |     |             |  2.5 | %                      |     | 3.5 | %                      |     | 3.5 | %             |     | 3.1 | %                   |
| Unemployment rate    |     |             |  7.4 | %                      |     | 5.4 | %                      |     | 4.2 | %             |     | 4.1 | %                   |
| Housing price change |     |             | -3.0 | %                      |     | 0.1 | %                      |     | 3.1 | %             |     | 4.6 | %                   |
| GDP growth           |     |             |  0.5 | %                      |     | 0.6 | %                      |     | 1.4 | %             |     | 2.4 | %                   |

Each of the macroeconomic scenarios is associated with a given weight. In terms of allocation, Santander UK associates the highest weighting to the base scenario, while it associates the