Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 847

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 847
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 |     | 1.1%    |     |                     |
| 100 bp             |     | -0.9%   |     |                     |

In relation to the stage 2 classification determination, the quantitative criteria applied at SC USA uses the FICO (Fair Isaac Corporation) score to reference their PD, at the time of origination and its current value, establishing different absolute threshold for each portfolio according to their characteristic s. Additionally, for each portfolio, a series of specific qualitative criteria are defined, which indicate that the exposure has had a significant increase in credit risk, regardless of the evolution of its PD since the initial recognition. SC USA among other criteria, considers that a transaction presents a significant increase in credit risk when it has irregular positions for more than 30days. These criteria depend on the risk management practices of each portfolio.

Annual report 2024 806

| Contents |     | Auditor's report |     | Consolidated financial statements |     | Notes to the consolidated financial statements |     | Appendix |

3.4. Banco Santander (Brasil) S.A. Portfolio overview Santander Brasil's credit risk amounted to EUR 104,519million. It decreased by 8.3% from 2023. Minus the exchange rate effect, it grew by 9.9%. As of December 2024, Santander Brasil accounts for 9% of Grupo Santander's loan book. The NPL ratio went from 6.56% in December 2023 to 6.14% in December 2024, and the coverage ratio decreased from 85% to 83%. As of 31 December 2024 loan-loss provisions reached EUR 4,487million, a 4.5% year-on-year decrease. Cost of risk reduced from 4.77% in 2023 to 4.51% in 2024. Despite the challenging macroeconomic environment, Brazil’s economy showed moderate growth in 2024, driven by industry and services but hit by the negative impact on agriculture due to adverse weather conditions. The job market continues to show resilience in a landscape marked by macroeconomic challenges, which helped sustain household consumption. Brazil’s economy remains subject to uncertainty linked to lower GDP in 2025 and the depreciation of the real. The retail segment (without Consumer Finance), which accounts 38% of Santander Brazil's total portfolio, mainly comprises mortgages and credit cards ( 26% and 22% of the total portfolio, respectively). As a result