Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 541

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 541
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 circumstances. Forborne debt should remain appropriately classified for sufficient time in order to determine both associated risk and reasonable certainty about recovery of ability to pay. Forbearance may never be used to delay the immediate recognition of losses or hinder the appropriate recognition of risk of default. In 2024, forbearance stock continued to fall (15% in the year), and stood at EUR 27,144 million, due to consistent payment behaviour in our core markets. In terms of credit quality, 54% are classified as credit impaired with average coverage of 41%.

| Key forbearance figures |     |    |        |     |    |        |     |    |        |
| EUR million             |     |    |        |     |    |        |     |    |        |
|                         |     |    |   2024 |     |    |   2023 |     |    |   2022 |
| Performing              |     |    | 12,459 |     |    | 16,919 |     |    | 18,988 |
| Credit impaired         |     |    | 14,685 |     |    | 15,044 |     |    | 15,185 |
| Total forborne          |     |    | 27,144 |     |    | 31,963 |     |    | 34,173 |
| % Total coverageA       |     | 26 |      % |     | 25 |      % |     | 24 |      % |

A. Total forbearance portfolio loan-loss allowances/total forborne portfolio. 2.4 Other credit risk details Credit risk from financial markets activities This section covers the credit risk generated from treasury activity with customers (especially credit institutions) through money market financing and counterparty risk products to meet the needs of customers and the Group's own needs in their management. Counterparty credit risk is the risk that a customer will default before the final settlement of a transaction’s cash flows. It creates a bilateral credit risk because it can affect both parties to a transaction. It is also uncertain because it depends on market factors, which can be volatile. As part of counterparty credit risk exposure, an additional risk known as wrong-way risk can arise. This risk occurs when the exposure to a portfolio or counterparty increases as the credit quality of the counterparty deteriorates. In other words, there is wrong-way risk when there is an increase in default risk, and consequently, the exposure