Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 834

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 834
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. Detail of credit quality ratings calculated for Group management purposes.

B. Total exposure includes loan balances (drawn amounts) and off balance (letters of credit + guarantees) and excludes REPOs, FV portfolio, trading portfolio and undrawn commitments.

C. Includes provisions for undrawn authorized lines (loan commitments). The remai ning units that form the totality of the Group exposure, contributed EUR 80,541million in stage 1; EUR 2,534million in stage 2, and EUR 874million in stage 3 (in 2023 EUR 68,788million in stage 1; EUR 1,504million in stage 2, and EUR 658million in stage 3. In 2022, EUR 123,796million in stage 1; EUR 2,902million in stage 2, and EUR 2,064million in stage 3), and loan-loss reserves of EUR 165million in stage 1; EUR 117million for stage 2, and EUR 295million in stage 3 (in 2023, EUR 199million, EUR 73million and EUR 161million and in 2022, EUR 147million, EUR 123million and EUR 294million in stage 1, stage 2 and stage 3, respectively). The remaining exposure, including all financial instruments not included before, amounts to EUR 665,476million (EUR 598,385million in 2023 and EUR 538,364million in 2022), and it includes all undrawn authorized lines (loan commitments). As of 31 December 2024, the Group had EUR 559million net of provisions (EUR 743million and EUR 322million at 31 December 2023 and 2022, respectively) of purchased credit-impaired assets, which relate mainly to the business combinations carried out by the Group. Regarding the evolution of credit risk provisions, the Group, in collaboration with the main geographical areas, monitors them by carrying out sensitivity analyses considering changes in macroeconomic scenarios and main variables that have an impact on the financial assets distribution in the different stages and calculating credit risk provisions.

Annual report 2024 796

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

Additionally, based on consistent macroeconomic scenarios, the Group also performs stress tests and sensitivity analysis in a regular basis, such as ICAAP,