Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 844

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 844
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 the entire life of the operation increases a certain amount over the PD it had at the time of initial recognition. The values of these thresholds depend on their calibration, carried out periodically, as indicated in previous paragraphs. Additionally, Santander Spain has implemented a backstop to the relative threshold in all portfolios. Consequently, contracts whose current PD has increased more than twice with respect to its PD at the time of its origination will be classified in stage 2. In addition, a series of specific qualitative criteria are defined that indicate that the exposure has had a significant increase in credit risk, regardless of the evolution of its PD since the moment of initial recognition. Santander Spain, among other criteria, considers that an operation presents a significant increase in risk when it presents irregular positions for more than 30 days or if it is determined based on a system of early warning indicators.

Annual report 2024 803

| Contents |     | Auditor's report |     | Consolidated financial statements |     | Notes to the consolidated financial statements |     | Appendix |

3.3. United States Portfolio overview Santander US’s credit risk increased to EUR 148,643million at the end of December 2024. It makes up 12.8% of Grupo Santander's total credit risk. As of December 2024, Santander US credit risk dropped 7.8% compared to 2023, mainly due to the activity of the New York branch. The NPL ratio grew to 4.72% (+ 15bps in the year) due to a higher stock of delinquencies and lower portfolio growth, and the cost of risk down to 1.82% (- 10bp in the year). Santander US includes the following business units: Santander Bank, National Association (SBNA) In 2024 lending amounted 53,520million euros (representing 5% of the Group's credit risk) and presents a reduction of 9.0% in 2024, mainly due to the transfer of the CIB portfolio to the New York branch. Once the fiscal support and stimulus programs were withdrawn, the NPL r atio increased to 2.22% (+ 58bp in the year) as of December 2024, but the cost of risk decreased to 0.91% (- 7bp in the year) due to Consumer Finance portfolio. The retail segment focuses on auto lending and leasing, consumer loans and credit cards. To maximize profitability and growth opportunities, we discontinued the orig