Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 443

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 443
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2024 were: • basic liquidity ratios remained at comfortable levels; • regulatory liquidity ratios were well above minimum requirements; and • our asset encumbrance from funding operations was moderate. In 2024, the main central banks started to cut interest rates, with different levels of intensity. However, Brazil's central bank started to raise its interest rate at the end of 2024, while in Poland, interest rates remained stable during the year. In 2024, the repayment of the ECB TLTRO-III funding programme launched by the European Central Bank was completed, being replaced by a mix of funding sources that allowed regulatory liquidity ratios and internal metrics to remain at appropriate levels.

Annual report 2024 417

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

The liquidity position remained solid, and commercial activity did not consume significant liquidity during the year, as the growth in lending was matched by the growth in deposits. i) Basic liquidity ratios at comfortable levels At the end of 2024, Santander recorded: • A credit to net assets ratio (i.e., total assets minus trading derivatives and inter-bank balances) of 68%, a similar level to previous years. • A net loan-to-deposit ratio (LTD) of 100%, a very comfortable level (well below 120%) although slightly higher than the 99% at 2023 year end. • A customer deposit plus M/LT funding to net loans and advances ratio of 128%, slightly above the 127% in 2023. • Limited recourse to short-term wholesale funding (around 2-3% of total funding), in line with previous years. • An average structural surplus balance, defined as the excess of structural funding sources (deposits, M/LT funding and capital) against structural liquidity needs from fixed assets and loans, of EUR 340,438 million in the year. The consolidated structural surplus stood at EUR 363,828 million at year end. Fixed-income assets (EUR 230,862 million), equities (EUR 20,368 million) and net interbank and central bank deposits (EUR 151,048 million) were partly offset by short-term wholesale funding (-EUR 38,450 million). This totalled around 24% of our net liabilities (similar to previous years). This table shows Santander’s basic liquidity monitoring metrics in recent years:

| Group’s liquidity