Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 909

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 909
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 on Form 20-F. Recessionary conditions in the economies of Europe, North America or some of the South American countries in which we operate, would likely have a significant adverse impact on our loan portfolio and sovereign debt holdings and, as a result, on our financial condition, cash flows and results of operations.

Our revenues are also subject to risk of deterioration from unfavourable political and diplomatic developments, social instability, international conflicts, and changes in governmental policies, including expropriation, nationalization, international ownership legislation, sanctions, interest-rate caps, fiscal and monetary policies globally.

For the year ending 31 December 2024, 48% of the underlying profit attributable to the Parent came from Europe (of which 27% was from Spain and 10% from the UK), 28% from South America (18% from Brazil), 20% from North America (8% from the US and 12% from Mexico) and 5% from the Digital Consumer Bank Europe segment. As of 31 December 2024, our total assets stood at 55% in Europe (29% in Spain and 18% in

the UK), 18% in South America (12% in Brazil), 17% in North America (12% in the US and 5% in Mexico) and 10% in the Digital Consumer Bank Europe segment. 1

In particular, the main regions where we operate are subject to the following macroeconomic and political conditions, which could have a material adverse effect on our business, results of operations, financial condition and prospects:

• After a period of persistent high inflation throughout the world, particularly in Europe and the US, during 2023 and 2024 inflation slowly converged towards central banks' objectives allowing interest rates cuts during the second half of 2024. A return to periods of high inflation could result in higher operating costs, a decrease in the purchasing power of families with the consequent increase in delinquencies in our credit portfolios, and lower economic growth derived from the tightening of monetary and fiscal policies aimed at containing inflation, among other risks, any of which could have a material adverse effect on our operations, financial condition and prospects.

Among the risks that could negatively affect the economies and financial markets of the regions where we operate and lead to a slowdown of the global economy, recession, inflationary pressures and/or stagflation are (i) the continuance or escalation of the wars in Ukraine and the Middle East; (ii) increases in the prices of energy and other