Company: BCDRF
Filing Date: 2025-04-30
Form Type: 6-K
Source: 0000891478-25-000078
Chunk: 63

Company: Banco Santander, S.A.
Filing Date: 2025-04-30
Form: 6-K
Chunk 63
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inflation.

In Q2 2024, due to the significant divergence between the official exchange rate and other macroeconomic magnitudes in Argentina, mainly inflation, we began to apply an alternative exchange rate for the Argentine peso which reflects the exchange rate observed in transactions ordered between market participants under the prevailing economic conditions, such as the repatriation of dividends from businesses in Argentina. 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 stabilization and improved macroeconomic outlook in the country, from Q4 2024 we take the dollar contado con liquidación rate (CCL) as a reference for this alternative exchange rate, which is the exchange rate resulting from the sale of local bonds denominated in Argentine pesos in US dollars (dual denomination peso/dollar bonds). 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.

The average and period-end exchange rates for the main currencies in which the Group operates are set out in the table below.

| Exchange rates: 1 euro / currency parity |     |                            |           |       |     |           |       |     |                            |           |        |     |           |        |     |           |        |
|                                          |     | Average (income statement) |           |       |     |           |       |     | Period-end (balance sheet) |           |        |     |           |        |     |           |        |
|                                          |     |                            |           | Q1'25 |     |           | Q1'24 |     |                            |           | Mar-25 |     |           | Dec-24 |     |           | Mar-24 |
| US dollar                                |     |                            |     1.052 |       |     |     1.085 |       |     |                            |     1.081 |        |     |     1.039 |        |     |     1.080 |        |
| Pound sterling                           |     |                            |     0.836 |       |     |     0.856 |       |     |                            |     0.837 |        |     |     0.829 |        |     |     0.855 |        |
| Brazilian real                           |     |                            |     6.152 |       |     |     5.374 |       |     |                            |