Company: BCDRF
Filing Date: 2025-07-31
Form Type: 6-K
Source: 0000891478-25-000113
Chunk: 32

Company: Banco Santander, S.A.
Filing Date: 2025-07-31
Form: 6-K
Chunk 32
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 |            |  -1.3 |     |     |   -1.4 |     |
| For other assets                               |     |  8,183 |       |            |  -4.1 |     |     |   -7.7 |     |

Our Retail, Consumer, CIB and Payments businesses account for around 97% of the Group's total credit portfolio. Our Wealth business focuses mainly on asset management, investment funds and insurance and has little credit risk exposure. Therefore, the following explanations are focused on the most relevant businesses from a credit risk management point of view:

|                    |     | Retail & Commercial Banking |     | Credit risk exposure |
| 55% of total Group |     |                             |     |                      |

Retail's portfolio mainly comprises high quality mortgage loans, where 90% of loans have an LTV lower than 80%, and a corporate portfolio in which more than 50% has property collateral or other collateral.

The NPL ratio fell 6 bps in the quarter to 3.06%, driven by lower credit impaired loans, mainly in Europe, with a notable improvement in Spain, supported by write-offs and portfolio sales within the NPL reduction plan. Total risk decreased 2%, mainly due to a decline in the UK. The cost of risk improved 13 bps compared to June 2024 to 0.89%, mainly supported by lower provisions in European portfolios, particularly: i) in Spain, due to a good performance in mortgages, favoured by lower interest rates, reduced inflationary pressures and a robust labour market and, ii) in Poland, as our CHF mortgage portfolio required lower provisions than in the same period last year. In Mexico, both the mortgage and corporate loan portfolios performed positively year-on-year, due to model updates and single names last year. Compared to the previous quarter, cost of risk improved 2 bps due to lower provisions mainly in Poland and Spain. The NPL coverage ratio increased slightly in the quarter, reaching 60%. Given the Retail portfolio includes the mortgage portfolios in Spain and the UK, which have high-quality collateral, we consider that coverage is at appropriate levels for the risk of the portfolio.

|                    |     | Digital Consumer Bank |     | Credit risk exposure |
| 18% of total Group |     |                       |     |                      |

The Consumer portfolio mainly comprises auto loans and leasing business, which together account for more than 80% of the portfolio. The NPL ratio stood at 4.97%,