Company: BCDRF
Filing Date: 2025-02-05
Form Type: 6-K
Source: 0000891478-25-000031
Chunk: 4

Company: Banco Santander, S.A.
Filing Date: 2025-02-05
Form: 6-K
Chunk 4
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28660 Boadilla del Monte (Madrid) comunicacion@gruposantander.com www.santander.com - Twitter: @bancosantander 3 euros, it grew 11%, supported by higher activity in most global businesses. More than 95% of total revenue is customer related, reflecting the quality and recurrence of the bank’s results. The efficiency ratio improved significantly to a 15-year record, falling 2.3 percentage points to 41.8%, reflecting the effect of the ongoing transformation (ONE Transformation). The replacement of legacy technology with shared global technology platforms, such as Santander’s cloud-based core banking platform Gravity, has helped the bank achieve savings of €452 million since December 2022. At group level, these investments and initiatives have helped the bank control costs, which grew at 2%, below the rate of inflation, with efficiency gains in most businesses. This is particularly evident in Retail, where the efficiency ratio improved by 3.4 percentage points to 39.7%, and Consumer, which improved 2.7 percentage points to 40.1%. As further evidence of the transformation, the Retail and Consumer businesses combined delivered a 9% increase in revenue with costs fairly flat in constant euros. Loan-loss provisions decreased (-1%) thanks to solid credit quality driven by low unemployment, good economic performance globally and favourable interest rates context, as well as the bank’s low risk profile. Cost of risk decreased to 1.15%, exceeding the full-year target of c.1.2%, and the non-performing loan (NPL) ratio improved nine basis points to 3.05%. The record 2024 results were possible despite several provisions related to Swiss franc mortgages in Poland or for potential complaints related to motor finance dealer commissions in the UK, announced at the end of 2024. The bank’s fully-loaded CET1 capital ratio increased to 12.8%, up 0.5 percentage points in the year and 0.3 percentage points in the quarter, well ahead of the group’s capital target. This was driven by strong organic capital generation in the quarter (+82 basis points) thanks to both profit combined with asset rotation and risk transfer activities, which allowed to absorb deductions for expected shareholder remuneration3 and other charges. On day one, Basel III has no impact to Santander’s CET14. In November, the bank paid an interim cash dividend against 2024 results of 10 euro cents per share, an increase of 23% compared