Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 545

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 545
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 income derivatives         |     |            |        96 |     |      |         — |     |      |        15 |
| Exchange rate derivatives        |     |            |    39,420 |     |      |    44,152 |     |      |    24,349 |
| Interest rate derivatives        |     |            | 7,740,492 |     |      | 5,844,580 |     |      | 4,555,519 |
| Commodity derivatives            |     |            |         — |     |      |         — |     |      |         — |
| Repos                            |     |            |   182,973 |     |      |   193,386 |     |      |   109,248 |
| Securities lending               |     |            |       294 |     |      |         — |     |      |         — |
| Total                            |     |            | 7,991,535 |     |      | 6,092,817 |     |      | 4,694,737 |

A. Figures under internal risk management criteria.

Credit derivatives We use credit derivatives to hedge transactions, customer business in financial markets and trading. The credit derivatives Santander has negotiated have a low notional value: 0.4% of the notional value of counterparty risk. Furthermore, we subject credit derivatives to internal robust controls and procedures to minimize operational risk.

Annual report 2024 521

| Contents |     | Business model and strategy |     | Sustainability statement |     | Corporate governance |     | Economic and financial review |     | Riskmanagementandcompliance |

Concentration risk Concentration risk control is key to our management. We continuously monitor credit risk concentration by region and country, economic sector, customer type and other criteria. The board sets concentration limits according to risk appetite. Accordingly, the executive risk committee develops risk policies and reviews the appropriate exposure levels so we can effectively manage credit risk concentration. Because Santander is subject to the Capital Requirements Regulation (CRR) stipulations on large risks, exposure with a customer or group of associated customers will be considered 'large exposure' if its value is equal to, or greater than, 10% of eligible capital. No large exposure should exceed 25% of the entity’s eligible capital, including the credit risk reduction effect set out in the regulation. The use of risk mitigation techniques resulted in no groups triggering those thresholds as at the end of Decemb er