Company: BCDRF
Filing Date: 2025-07-31
Form Type: 6-K
Source: 0000891478-25-000111
Chunk: 32

Company: Banco Santander, S.A.
Filing Date: 2025-07-31
Form: 6-K
Chunk 32
---
 |          |     |                      |

The Payments portfolio encompasses both the exposure associated with payments and transfer processing activities (PagoNxt) as well as the Cards businesses, which are characterized by rapid turnover and returns in line with their level of risk. The NPL ratio stood at 5.11%, 77 bps below March 2025, driven by a decline in credit impaired loans, especially in Brazil, due to write-offs. Total risk decreased slightly in the quarter, mainly due to Brazil, Chile and, to a lesser extent, Mexico. The cost of risk rose 51 bps year-on-year, to 7.54%, due to higher provisions (mainly concentrated in Cards). The increase was primarily due to the macroeconomic environment and the impact from changes in provision models in Brazil and Mexico. In the quarter, CoR registered a 2 bp increase. The NPL coverage ratio rose 5 pp in the quarter to 131%. Market risk Markets were mainly influenced by the potential negative impacts on global economic growth from trade policies in the US and geopolitical tensions, including the war in Ukraine, the conflict in Israel and the recent heightened tensions with Iran. Trading activity in CIB is focused on meeting the needs of our clients. Its risk is measured in terms of daily VaR at 99% and originates from possible movements in interest rates. In Q2 2025, the average VaR was EUR 18 million, decreasing compared to Q1 2025 and remaining moderately stable during the quarter, in a slightly less volatile environment due to the expectations of trade negotiations that could reduce the potential impact of tariffs on international trade.

By market risk factor, VaR continued to be primarily driven by interest rate risk. The VaR figures remain low compared to the size of the balance sheet and the Group's activity.

| Trading portfolios1. VaR by region |     |      |      |         |     |      |      |     |      |      |         |
| EUR million                        |     |      |      |         |     |      |      |     |      |      |         |
|                                    |     | 2025 |      |         |     |      |      |     | 2024 |      |         |
| Q2                                 |     |      |      | Average |     |      | Last |     |      |      | Average |
| Total                              |     |      | 18.2 |         |     | 15.6 |      |     |      |