Company: BCDRF
Filing Date: 2025-10-29
Form Type: 6-K
Source: 0000891478-25-000132
Chunk: 61

Company: Banco Santander, S.A.
Filing Date: 2025-10-29
Form: 6-K
Chunk 61
---
 loan-loss provisions, partially offset by lower losses on financial transactions driven by a smaller impact from currency hedges. |     |                                |     |               |

Strategy and functions

The Corporate Centre contributes value to the Group, through the following functions, among others: • Global control frameworks and supervision. • Fostering the exchange of best practices in cost management, which enables us to be one of the most efficient banks. • Collaborating in the definition and execution of the global strategy, competitive development operations and projects that ensure we meet the business plan. • Contributing to the launch of projects that will be developed by our global businesses, aimed at leveraging our worldwide presence to generate economies of scale. • Ensuring open and constructive communication with shareholders, analysts, investors, bondholders, rating agencies and other market players. • Adding value to our businesses, countries and divisions by encouraging the exchange of best practices, driving and managing innovative global initiatives and defining corporate policies to improve process efficiency and customer service quality. It also coordinates the relationship with European regulators and supervisors and carries out functions related to financial management and capital, as follows: • Financial Management functions : • Structural management of liquidity risk associated with funding the Group’s recurring activity and stakes of a financial nature. At the end of September 2025, the liquidity buffer was EUR 343 billion (provisional data). This is done ensuring the diversification of funding sources (issuances and others), maintaining an adequate profile in volumes, maturities and costs. The price of these transactions with other Group units is the market rate that includes all liquidity concepts (which the Group supports by immobilizing funds during the term of the transaction) and regulatory requirements (TLAC/MREL). • We also actively manage interest rate risk to dampen the impact of interest rate changes on net interest income, conducted via high credit quality, very liquid and low capital consumption derivatives.

• Strategic management of exposure to exchange rates in equity and dynamic management of the FX hedges related to the units’ next twelve months results in euros. The net investments in equity currently hedged totalled EUR 18,102 million (mainly in the UK, Mexico and Chile) with different FX instruments (spots and forwards). • Management of total capital and reserves: capital analysis, adequacy and management of the Group including: coordination with subsidiaries, monitoring profitability to maximize shareholder returns, setting solvency targets and capital contributions, and monitoring the capital ratio in both regulatory and economic terms, and efficient capital allocation to the units. Results In 9