Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 408

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 408
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1 Description of segments during 2024                           |     | 437 |
| 4.2 Summary of the Group's main business areas' income statements |     | 439 |
| 4.3 Primary segments                                              |     | 441 |
| 4.4 Secondary segments                                            |     | 453 |
| 4.5 Appendix                                                      |     | 462 |
| 5. RESEARCH, DEVELOPMENT AND INNOVATION (R&D&I)                   |     | 478 |
| 6. SIGNIFICANT EVENTS SINCE YEAR END                              |     | 481 |
| 7. TREND INFORMATION 2025                                         |     | 482 |
| 8. ALTERNATIVE PERFORMANCE MEASURES (APMs)                        |     | 492 |

Annual report 2024 386

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

#### 1. ECONOMY, REGULATION AND COMPETITION
Economy

In 2024, Santander operated in an environment characterized by gradual reductions in interest rates by central banks, as a result of the decline in inflation and in a context with continuing geopolitical tensions. In general, the world's major economies are successfully completing the soft landing promoted by central banks' monetary policies and, while activity levels cooled down, they did so slowly. Labour markets were robust, with unemployment rates at or near full employment in two out of three economies in which Santander operates.

Our core regions' economies performed as follows in 2024:

• Eurozone (GDP in 2024: +0.7%). GDP growth improved slightly during the year. The reactivation of household consumption, still affected by inflation, was less than the increase in wages would have allowed. Moreover, the decline in gross fixed capital formation continued. External demand was the main driver of economic activity. The labour market remained resilient, with the unemployment rate at record lows (6.3% at year end). Inflation fell to around 2%, allowing the European Central Bank (ECB) to start a cycle of interest rate cuts, ending the year at 3%.

• Spain (GDP in 2024: +3.2%). Spain's economy was one of the most dynamic among the advanced economies. GDP was driven by services exports and consumption (both public and private). However, investment is not yet reflecting the expansionary cycle