Company: BCDRF
Filing Date: 2025-04-30
Form Type: 6-K
Source: 0000891478-25-000078
Chunk: 26

Company: Banco Santander, S.A.
Filing Date: 2025-04-30
Form: 6-K
Chunk 26
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 policies. Compared to the previous quarter, it improved 1 bp due to lower provisions in Portugal, Poland and Argentina, offsetting Brazil and Mexico. The NPL coverage ratio rose slightly in the quarter to 59%. Given the Retail portfolio includes the mortgage portfolios in Spain and the UK, which have high-quality collateral, we consider that coverage is at appropriate levels for the risk of the portfolio.

|                    |     | Digital Consumer Bank |     | Credit risk exposure |
| 18% of total Group |     |                       |     |                      |

The Consumer portfolio mainly comprises auto loans and leasing business, which together account for more than 80% of the portfolio. The NPL ratio stood at 5.09%, 1 bp more than in December 2024, explained by a slight decrease in gross credit risk with customers (total risk). Credit impaired loans were stable, supported by the good performance in the US (tax season). The cost of risk at 2.14% was practically flat (+1 bp) compared to March 2024, as the good performance in DCB US, which offset the normalization of provisions in Europe, the increased coverage of our CHF mortgage portfolio, lower portfolio sales, and regulatory charges in DCB Europe. Compared to December 2024, cost of risk improved 3 bps, driven by lower LLPs in DCB US due to the good underlying performance and some seasonality in Q4 of net loan-loss provisions. The NPL coverage ratio was stable in the quarter at 75%, a level we are comfortable with considering more than 80% of the portfolio is auto loans.

|                    |     | Corporate & Investment Banking |     | Credit risk exposure |
| 21% of total Group |     |                                |     |                      |

CIB's business consists of wholesale customers, more than 85% of whom have a rating above investment grade. It is a business with a strong advisory component and high value-added solutions and is less intensive in terms of balance sheet activity. The NPL ratio improved 8 bps in the quarter to 0.75%, due to a generalized decline in credit impaired loans in all units, but especially in the European countries and the US. Moreover, gross credit risk with customers (total risk) increased significantly, mainly due to the US, Spain and Argentina. This positive performance was supported by the good results obtained by large corporates at the end of the year and by the pick-up in credit demand in Argentina. The cost of risk improved