Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 539

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 539
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 (Gross)B |     |   |     |                        |
| 1,076,195                              |     | 1,033,025 |     |                                               26,591 |     | 16,579 |     |                                    |     |   |     |                                         |     |   |     |                        |
| Loan-loss reserves                     |     |         = |     |                                            Loan-loss 
                                             reserves |     |        |     |                                  + |     |   |     | Loan-loss                               
 reserves                                |     |   |     |                        |
| -22,125                                |     |   -21,983 |     |                                                      |     |        |     |                               -142 |     |   |     |                                         |     |   |     |                        |
| Net loans and advances to customers    |     |         = |     |                                 Net financial assets 
                           measured at amortized cost |     |      + |     |                   Financial assets 
                   held for trading |     | + |     | Net financial assets at fair value      |     |   |     |                        |
| 1,054,070                              |     | 1,011,042 |     |                                               26,591 |     | 16,437 |     |                                    |     |   |     |                                         |     |   |     |                        |
|                                        |     |           |     |                  Net loans and advances to customers |     |        |     |                                    |     |   |     |                                         |     |   |     |                        |
|                                        |     |           |     |                                            1,054,070 |     |        |     |                                    |     |   |     |                                         |     |   |     |                        |

Section 2. Credit risk

Balance sheet item from consolidated financial statement

A. Includes gross loans and advances to customers, guarantees and documentary credits.

B. Before loan-loss allowances.

Financial asset impairment

IFRS 9 amended the criteria for provisioning financial assets subject to credit risk, from only recognizing losses once they had occurred to requiring provisions from the time the transaction receives approval (based on expected losses) because the credit risk exists from that moment as opposed to upon default. This gave rise to modification of the models and methodologies we use to calculate expected losses for customers and portfolios, which now consider economic forecasts and the residual life of individual transactions. We quantify expected losses from credit events and, therefore, impairment provisions, using an unbiased, weighted consideration of