Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 533

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 533
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 well as uncertainty about economic growth, have marked market behaviour.

Although the financial system, in general terms, has benefited throughout much of the year from the increase in credit margins, it is also facing certain adverse factors (headwinds) related to lower loan demand, deterioration in credit quality, and potential increase in credit losses due to the reduction in disposable income of households, despite the strength of labor markets, as fiscal policies that have supported families and businesses are being withdrawn.

The macroeconomic outlook has influenced Grupo Santander's performance and led us to strengthen our credit risk control framework with a more anticipatory vision in all processes, in order to strengthen our resilience to possible future economic disruptions. Our geographical and business diversification, prudent balance sheet management, and proactive risk management, among others, help us face this challenging environment.

Our credit risk maintained a strong, diversified balance of mature and emerging markets: Europe (56%), North America (17%), South America (15%) and Digital Consumer Bank Europe (12%).

The distribution of credit risk by global businesses (including gross loans to customers, guarantees, and documentary credits) is shown below:

| Main credit risk performance metrics from our activity with customers 
 Dec. 24 data                                                          |     |                                          |           |     |      |           |     |      |           |     |                |        |     |      |        |     |      |        |     |           |     |      |      |     |      |      |     |      |
|                                                                       |     | Credit risk with customersA(EUR million) |           |     |      |           |     |      |           |     | Impaired loans 
  (EUR million) |        |     |      |        |     |      |        |     | NPL ratio 
       (%) |     |      |      |     |      |      |     |      |
|                                                                       |     |                                     2024 |           |     | 2023 |           |     | 2022 |           |     |           2024 |        |     | 2023 |        |     | 2022 |        |     |      2024 |     |      | 2023 |     |      | 2022 |     |      |
| Retail & Commercial Banking                                           |     |                                          |   643,782 |     |      |   652,382 |     |      |   657,201 |     |                | 20,468 |     |      |