Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 568

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 568
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 autonomy over liquidity and capital enables us to mitigate risk. Our capital metrics are stable, with ratios that remain comfortably above regulatory requirements. The distribution of risk-weighted assets (RWA) by risk type and by region at year end reflects the Group's core business in credit risk and geographic diversification:

| RWA by risk typeA |
| Dec.24 data       |

| RWA by regionB |
| Dec. 24 data   |

A. Credit risk included counterparty credit risk, securitizations and amounts below the thresholds for deduction. B. Others, not included, represent 3% (Corporate centre)

At the end of December, our fully-loaded CET1 ratio was 12.8%, above our 12% target. The fully-loaded CET1 ratio rose 51 bps. We achieved gross organic generation of 209 bps and recognized a 100 bps charge for shareholder remuneration in 2024 (consistent with the target payout of 50%) and a negative regulatory and model impact of 59 bps. Under IFRS 9 transitional arrangements, the CET1 phased-in ratio at the end of December was 12.8% and the total phased-in capital ratio was 17.4%, comfortably meeting the Basel Committee's 9.6% and 13.9% minimum levels, respectively. Throughout the year, we maintained all the Group's risk appetite metrics above the established solvency limits.

| For more details, see section3.5 ‘Capital management and adequacy. Solvency ratios'in the 'Economic and financial review' chapter. |

Annual report 2024 536

| Contents |     | Business model and strategy |     | Sustainability statement |     | Corporate governance |     | Economic and financial review |     | Riskmanagementandcompliance |

#### 5. OPERATIONAL RISK
5.1 Introduction

Operational risk is inherent in all products, activities, processes, and systems, as well as in all business and support areas. All employees are responsible for managing and controlling the operational risks generated by their activities.

Santander defines operational risk, according to the Basel framework, as the risk of loss resulting from inadequate or failed internal processes, people, or systems, or from external events. Also, it covers categories of risks such as fraud, technological, cyber, legal 9 , and conduct risks are included.

5.2 Operational risk management

Management and control model

Our operational risk and control model establishes the core components needed