Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 898

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 898
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 and social matters, as well as the evolving nature of underlying science and industry and governmental standards and regulations;

• exposure to various market risks, principally including interest rate risk, foreign exchange rate risk, equity price risk, inflation, deflation and risks associated with new or modified benchmark indices;

• a worsening of the economic environment in Spain, the UK, other European countries, the US, Brazil, other Latin American countries and the other areas where we have significant

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| Contents |     | Cross-reference to Form 20-F |     | Consolidated director's report |     | Consolidated financial statements |     | Supplemental information |

operations or investments, and an increase in the volatility in the capital markets;

• the effects of a decline in real estate prices, particularly in Spain and the UK;

• the effects of results of UK political developments, including continued effects from the UK’s exit from the European Union;

• monetary and interest rate policies of the ECB and various central banks;

• the effects of market behaviour not captured by our statistical models, such as the VaR model we use;

• changes in competition and pricing environments;

• the inability to hedge some risks economically;

• changes in demographics, consumer spending, investment or saving habits;

• changes in energy prices;

• potential losses from early repayments on our loan and investment portfolios, declines in value of collateral securing our loan portfolio, and counterparty risk; and

• changes in competition and pricing environments as a result of the progressive adoption of the internet for conducting financial services and/or other factors.

Political and Governmental Factors

• political instability in Spain, the UK, other European countries, the US, Brazil, other Latin American countries and the other areas where we have significant operations or investments;

• changes in Spanish, UK, EU, US, Latin American, or other jurisdictions’ legislation, regulations or taxes, including changes in regulatory capital and liquidity requirements, especially in view of the UK exit from the EU; and

• increased regulation in response to financial crises.

Transaction and Commercial Factors

• damage to our reputation;

• acquisitions or restructurings of businesses that may not perform in accordance with our expectations and our ability to integrate successfully our acquisitions and related challenges that result from the inherent diversion of management’s focus and resources from other strategic opportunities and operational matters; and

• the outcome of our negotiations with business partners and governments.

Operating Factors

• the adequacy of loss reserves;

• potential losses associated with an increase in the level of impairment by counterparties to other