Company: BCDRF
Filing Date: 2025-03-03
Form Type: 6-K
Source: 0000891478-25-000057
Chunk: 76

Company: Banco Santander, S.A.
Filing Date: 2025-03-03
Form: 6-K
Chunk 76
---
                                                         |     | Retail exposures - guaranteed by real estate, not SMEs                                   |     |                     |     |  16,073 |                   |     | 278,211 |                                          |     |      — |                                         |     |      — |                                          |     | 278,211 |
|                                                         |     | Qualifying revolving retail exposures                                                    |     |                     |     |  20,735 |                   |     |       — |                                          |     |      — |                                         |     |      — |                                          |     |       — |
|                                                         |     | Retail exposures - other, SME                                                            |     |                     |     |  14,076 |                   |     |   9,947 |                                          |     |  7,234 |                                         |     |  2,689 |                                          |     |      25 |
|                                                         |     | Retail exposures - other, not SME                                                        |     |                     |     |  26,050 |                   |     |  14,298 |                                          |     |    103 |                                         |     | 14,084 |                                          |     |     112 |

2024 Pillar 3 Disclosures Report 127

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

#### 4.7.1. Recognition of credit risk mitigation

#### Valuation and control processes
The valuation of collateral should always use conservative criteria appropriate to the time horizon of the secured transaction, using the most appropriate processes for each type of collateral to minimise the risk of overvaluation. The time value of the collateral offered, as well as its possible change in nature, especially in the case of rights, or risks of reduction in value, amortisation or disappearance, must be appropriate to the maturity and payment flow of the main transaction. From the point of view of parameter estimation, the collateral allotment flows are discounted on the basis of a haircut, which reflects the difference between the sale value of the asset and the allotment value, as well as other aspects such as indirect costs or the effect of the discount factor.

For collateral, the value of the collateral established at the time of grant must be updated in accordance with minimum frequencies, either by individual valuation or by automated methods. In any case, the following frequency criteria shall be observed depending on the type of collateral:

• Financial collateral shall be valued at least quarterly, taking its fair value as a reference