Company: BCDRF
Filing Date: 2025-01-08
Form Type: 424B5
Source: 0001193125-25-003514
Chunk: 78

Company: Banco Santander, S.A.
Filing Date: 2025-01-08
Form: 424B5
Chunk 78
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. If these circumstances were to arise, this could have a material adverse effect on our operating results, financial condition and prospects.

In March 2023, the liquidity issues faced by Silicon Valley Bank and other banks in the United States and the issues faced by the Swiss bank
Credit Suisse, caused withdrawals of deposits from these banks and volatility in international markets. Central Banks took measures designed to guarantee the liquidity of the banking system. Although we do not have material exposure to the affected
banks, the spread or potential spread of these or other issues to the broader financial sector could have a material adverse effect on our operating results, financial condition and prospects.

Central banks took extraordinary measures to increase liquidity in the financial markets as a response to the financial crisis and the covid-19 pandemic. In Europe, the ECB’s pandemic emergency purchase programme (PEPP) was finalized by the end of March 2022, although maturing principal payments are expected to be repurchased until at least
the end of 2024. If these facilities, which are progressively being reduced, were to be rapidly removed, this could have an adverse effect on our ability to access liquidity and on our funding costs.

Additionally, our activities could be adversely impacted by liquidity tensions arising from generalized drawdowns of committed credit lines to
our customers.

We cannot assure that in the event of a sudden or unexpected shortage of funds in the banking system, we will be able to
maintain levels of funding without incurring high funding costs, a reduction in the term of funding instruments or the liquidation of certain assets. If this were to happen, we could be materially adversely affected.

Finally, the implementation of internationally accepted liquidity ratios might require changes in business practices that affect our
profitability. The LCR is a liquidity standard that measures if banks have sufficient high-quality liquid assets to cover expected net cash outflows over a 30-day liquidity stress period. At 31 December
2022, our LCR ratio was 152%, above the 100% minimum requirement. The NSFR provides a sustainable maturity structure of assets and liabilities such that banks maintain a stable funding profile in relation to their activities. At the end of 2022,
this ratio stands at 121% for the Group and over 100% for all our main subsidiaries.

Risks Relating to the Securities

Holders of any series of securities may experience a loss in their investment in the event Banco Santander becomes subject to a resolution process under Law 11/2015 (or in the event that loss