Company: BCDRF
Filing Date: 2025-04-30
Form Type: 6-K
Source: 0000891478-25-000078
Chunk: 27

Company: Banco Santander, S.A.
Filing Date: 2025-04-30
Form: 6-K
Chunk 27
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6 bps compared to March 2024, to 0.08%, and 2 bps since December 2024, due to the almost inexistent provisions in Q1 2025. The NPL coverage ratio decreased 4 pp quarter-on-quarter to 39%.

| January - March2025 |     | 21 |

| Key consolidated data 
 Business model        |     | Group financial information |     | Financial information by segment |     | Sustainability       
 Corporate governance |     | Appendix |     | Index |
|                       |     | Risk management             |     |                                  |     |                      |     |          |     |       |

|                   |     | Payments |     | Credit risk exposure |
| 2% of total Group |     |          |     |                      |

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 5.88%, 68 bps above December 2024, driven by the increase in credit impaired loans, especially in Brazil, due to higher interest rates and inflation in the country. Gross credit risk with customers (total risk) increased slightly in the quarter. The cost of risk rose 64 bps year-on-year to 7.52% due to the increase in provisions (mainly concentrated in Cards). The increase is primarily due to portfolio growth and regulatory model changes and macroeconomic outlook in Brazil, and, to a lesser extent, to the update of models in Mexico in response to a change in macroeconomic environment. In the quarter, CoR registered a 16 bp increase. The NPL coverage ratio fell 11 pp in the quarter to 126%. Market risk Markets were mainly influenced by the potential negative impact on global economic growth as a consequence of the new trade policies in the US, as well as by geopolitical tensions stemming from the ongoing war in Ukraine and the conflict in the Middle East. The trading activity of 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 the first quarter of the year, the average VaR was EUR 21 million (slightly increasing compared to the previous quarter in interest rate and exchange rate risk), remaining stable during the quarter despite the uncertainty of the current environment, which was reflected in spikes in market volatility.

By market risk factor