Company: BCDRF
Filing Date: 2025-03-03
Form Type: 6-K
Source: 0000891478-25-000057
Chunk: 115

Company: Banco Santander, S.A.
Filing Date: 2025-03-03
Form: 6-K
Chunk 115
---
 years, and closed December at EUR 69 million. This has meant that trading risk has contributed to capital less than in previous years. Santander also continues to have very limited exposure to complex structured instruments or vehicles, reflecting a risk culture in which prudent risk management is one of the key features. Our exposure to hedge funds at the end of December 2024 was 111 million euros, being indirect acting as counterparty in derivative transactions. We analyse the risk related to this type of counterparty on a case-by-case basis, establishing collateralization percentages according to the characteristics and assets of each fund. The group's policy for approving new transactions related to these products remains very prudent and conservative, and is subject to strict supervision by the group's senior management. The bank's derivatives activity is mainly focused on the sale of investment products and on hedging risks for our customers. Risk management is focused on ensuring that net open risk is as low as possible. These transactions include options on equities, fixed income and exchange rates. The units where this activity mainly takes place are: Spain, Brazil, the UK and Mexico.

In comparison with other similar financial groups, the Group's trading risk profile can be classified as low. Dynamic management of risk enables Santander to adopt changes in strategy to unlock opportunities in an uncertain environment. For more information, see the 'Risk, compliance & conduct management' chapter of the 2024 Annual report.

| Access 2024 Annual Report available on the Santander Group website |

188 2024 Pillar 3 Disclosures Report

| Index |     | Introduction |     | Capital |     | Risks |     | Risk taker's remunerations |     | Appendices |

At year-end 2024, VaR by geography was as follows:

| Table 81.MR3 - IMA values for trading portfolios |     |               |     |   |     |      |     |      |     |     |           |
| EUR million                                      |     |               |     |   |     |      |     |      |     |     |           |
|                                                  |     |               |     | a |     |      |     |      |     |     |           |
| Total                                            |     |               |     |   |     | 2024 |     | 2023 |     |     | Variation |
| Var (10 days - 99%)                              |     |               |     |   |     |      |     |      |     |     |           |
|