Company: BCDRF
Filing Date: 2025-07-31
Form Type: 6-K
Source: 0000891478-25-000113
Chunk: 30

Company: Banco Santander, S.A.
Filing Date: 2025-07-31
Form: 6-K
Chunk 30
---
 is progressing at a moderate pace, with greater uncertainty stemming from international trade tensions, which policymakers aim to offset through increased spending in defense and the simplification of the regulatory agenda, to promote private sector investment. The ECB has adopted a neutral-expansionary tone in monetary policy, which is already being reflected in mortgage and consumer portfolios.

Our global and diversified business model, with our strong local presence, provides us with a resilient structure which, together with our prudent risk management, enables us to maintain a medium-low risk profile, even in a more complex environment.

In terms of credit quality, in Q2 2025:

• The NPL ratio improved 9 bps quarter-on-quarter to 2.91%. Credit impaired loans decreased 5% to EUR 33,395 million, driven by favourable exchange rate movements and positive trends across all global businesses. Gross credit risk with customers (total risk) decreased 2%, reaching EUR 1,148 billion, due lower volumes in Retail UK and DCB US.

Year-on-year, the NPL ratio improved 11 bps, backed by lower credit impaired loan volumes, mainly in Retail and CIB, which more than offset a decrease in total risk due to the impact of securitizations.

• Net loan-loss provisions totalled EUR 6,178 million in H1 2025, growing 6% year-on-year in constant euros, mainly due to the increase in Payments (especially in Brazil) and the Corporate Centre, reflecting our strategy to accelerate NPL ratio reductions, improving the Group's credit quality.

Quarter-on-quarter, provisions decreased 1% in constant euros, supported by a good performance in Consumer, mainly in Brazil, DCB Europe and DCB US.

| Key risk metrics |     |                           |     |       |     |       |     |         |     |         |     |                   |     |        |     |           |     |           |     |               |     |        |     |           |     |           |     |                        |     |        |     |          |     |          |
|                  |     | Net loan-loss provisions3 |     |       |     |       |     |         |     |         |     | Cost of risk (%)4 |     |        |     |           |     |           |     | NPL ratio (%) |     |        |     |           |     |           |     | NPL coverage ratio (%) |     |        |     |          |     |          |
|                  |