Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 490

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 490
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 competitive development operations and projects that ensure we meet the business plan.

• Contributing to the launch of projects that our global businesses will carry out which aim to leverage 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 efficiency in our processes and service quality for our customers.

It also coordinates the relationship with European regulators and supervisors and carries functions related to financial and capital management, 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 2024, the liquidity buffer was EUR 351 billion.

This is done via diversified funding sources (issuances and other), 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).

• Interest rate risk is also actively managed in order 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 12,169 million (mainly in Mexico, the UK and Poland) through different FX instruments (spot or forwards).

• Management of capital and reserves : capital analysis, adequacy and management of the Group including coordination with subsidiaries, profitability monitoring to maximize shareholder returns, setting solvency targets and capital contributions, monitoring the capital ratio (in both regulatory and economic terms), and efficient capital allocation to the units.

Annual report 2024 451

| Contents |     | Business model and strategy |     | Sustainability statement |     | Corporate governance |     | Economic and financial review |     | Riskmanagement and compliance |

Results

The attributable loss of EUR 1,154 million was 16% higher than in 2023 (loss of EUR 998 million), as follows:

• Net interest income worsened by EUR 268 million, as increased liquidity buffer remuneration was amply offset by greater interest expense related to higher volumes of