Company: BCDRF
Filing Date: 2025-07-31
Form Type: 6-K
Source: 0000891478-25-000111
Chunk: 124

Company: Banco Santander, S.A.
Filing Date: 2025-07-31
Form: 6-K
Chunk 124
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 settlement scenario is reflected in the model used to calculate provisions for legal risks.

As of 30 June 2025, Santander Bank Polska S.A. and Santander Consumer Bank S.A. maintained a portfolio of loans affected by the legal risk connected with CHF mortgage for an approximate gross amount of PLN 4,435.6 million (EUR 1,045.6 million). As of 1 January 2022, in accordance with IFRS 9 and based on the new best available information, the accounting methodology was adapted so that the gross carrying amount of mortgage loans denominated and indexed in foreign currencies is reduced by the amount in which the estimated cash flows are not expected to cover the gross amount of loans, including as a result of legal controversies relating to these loans. In the absence of exposure or insufficient gross exposure, a provision according to IAS 37 is recorded.

As of 30 June 2025, the total value of adjustment to gross carrying amount in accordance with IFRS9 as well as provisions recorded under IAS37, amount to PLN 6,508.7 million (EUR 1,534.4 million) of which PLN 4,110.6 million (EUR 969.1 million) corresponds to adjustment to gross carrying amount under IFRS 9 and PLN 2,398.1 million (EUR 565.3 million) to provisions recognized in accordance with IAS 37. The adjustment to gross carrying amount in accordance with IFRS9 during the first semester of 2025 amounted to PLN 58.1 million (EUR 13.5 million), the additional provisions under IAS 37 amounted to PLN 671.9 million (EUR 158.8 million). Other costs related to the dispute amounted to PLN 318.1 million (EUR 75.2 million).

The above figures include Santander Bank Polska and Santander Consumer.

These provisions represent the best estimate as of 30 June 2025. Santander Bank Polska and Santander Consumer Bank Poland will continue to monitor and assess the appropriateness of those provisions.

• Banco Santander Mexico: dispute regarding a testamentary trust constituted in 1994 by Mr. Roberto Garza Sada in Banca Serfin (currently Santander Mexico) in favor of his four sons in which he affected shares of Alfa, S.A.B. de C.V. (respectively, Alfa and the Trust). During 1999