Company: BCDRF
Filing Date: 2025-04-30
Form Type: 6-K
Source: 0000891478-25-000080
Chunk: 35

Company: Banco Santander, S.A.
Filing Date: 2025-04-30
Form: 6-K
Chunk 35
---
 digits • Strong profit growth YoY boosted by NII (UF and lower deposit costs), fees (transactional and funds) and gains on financial transactions, with higher costs (Gravity roll-out) and LLP normalization • Profit QoQ affected by high NII levels in Q4, costs and LLPs normalization, partially offset by fees (transactional and advisory) • Loan rose YoY driven by Consumer and Cards. Strong deposit growth (both time and demand) and mutual funds • Profit up YoY, driven by NII (activity in Cards and CIB) and fees (transactional and insurance), with LLPs affected by macro environment and higher volumes. Costs grew in line with inflation • Profit QoQ affected by impact of negative interest rate sensitivity on NII, seasonality in fees and higher LLPs while costs improved

52 Note: Mar-25 data and YoY changes (loans, deposits and mutual funds in current euros). (1) The exchange rate resulting from the sale of local bonds denominated in Argentine pesos in US dollars (dual denomination peso/dollar bonds). ARGENTINA • In Q2 2024, given a significant divergence between the official exchange rate and inflation, we decided to start using an alternative exchange rate – This exchange rate was modelled by our Economic Research Team primarily taking into account the inflation differential of Argentina with respect to the US • Given the improved macroeconomic outlook in the country, from Q4 2024 we take the Dollar Contado con Liquidación (CCL)1 rate as a reference for this alternative exchange rate: – At the end of the year, the value of this exchange rate did not significantly differ from other market rates or the official exchange rate • As a result, in Q3 2024 we used an FX rate of 1,618 ARS/EUR while in Q4 2024 we used 1,232 ARS/EUR, resulting in a higher quarter than previous ones – To give an idea of the sensitivity to the FX rate, applying September 2024 rate of 1,618 ARS/EUR, 2024 NII would have been negatively impacted by c.€700mn, c.40% of which would have been offset in other income, while costs would have been c.€250mn lower. • In Q1 2025 we are using 1,426 ARS/EUR (FX corresponding to Dollar CCL) ARGENTINA PESO Underlying P&L* Q1'25