Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 535

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 535
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 businesses and markets remained positive.

The cost of risk stood at 1.15% (-3 bps versus 2023 year end), in line with our target for the year, due to the good performance of loan-loss provisions and total risk.

The NPL coverage ratio fell to 65%, with loan-loss reserves standing at EUR 22,835 million. Coverage remains at a comfortable level, considering that 66% of the Group’s portfolio is backed by collaterals.

Annual report 2024 513

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

To alleviate the mortgage burden for clients considered vulnerable, since the rates reduction, derived from the decreases in official rates in some countries, has not yet been applied to the entire portfolio, the Group maintains the aid measures proposed by various governments, and particularly in Spain, the ICO lines for those affected by the flash floods and the promotion of social housing.

| For more details on segments, see section'4.1 Description of segments'of the 'Economic and financial review' chapter. |

Our credit risk management performance within the five global businesses at 2024 year end was as follows:

| Retail & Commercial Banking |

The Retail portfolio mainly comprises high quality mortgages (90% of which have a loan to value ratio of lower than 8 0%) and a corporate portfolio in which around 50% is backed by collateral or real estate guarantee. Portfolio distributio n by region and by performing loans and credit impaired Dec.24 The Retail credit risk with customers is distributed between Mortgages (52%), Corporates (24%), SMEs (14%), and Other individuals (10%). The NPL ratio decreased 3 bps to 3.18%, owing to a 2.4% decrease in impaired loans mainly in Mexico, the UK and Spain on the back of non-performing portfolio sales, partially offset by growths in South America and the US . The credit risk with customers (total risk) fell slightly in the year (-1.3%). Loan-loss provisions in 2024 fell 11% in comparison with the same period in 2023, largely due to strongly performing European portfolios, which were partially offset by an increase, due to normalization in Mexico and Chile. The cost of risk decreased 10 bps to 0.92% in comparison with 2023, explained by the positive loan-loss provision effect.

The N