Company: BCDRF
Filing Date: 2025-10-29
Form Type: 6-K
Source: 0000891478-25-000132
Chunk: 7

Company: Banco Santander, S.A.
Filing Date: 2025-10-29
Form: 6-K
Chunk 7
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 positive net fee income performance (+8%), boosted by higher customer activity and network benefits in all businesses except in Consumer, which was impacted by new regulation in Germany and weaker trends in new car registrations in Europe, particularly in H1 2025. u The structural changes we have implemented to move towards a simpler and more integrated model through ONE Transformation continue to contribute to better costs, efficiency gains and profitable growth. Costs decreased in current euros, in line with our 2025 year-end target. The efficiency ratio improved to 41.3%, the best efficiency ratio we have reported in more than 15 years, with notable improvements in Payments and Wealth.

u Credit quality remains robust, supported by our good risk management and low unemployment levels across our footprint. The NPL ratio improved 14 bps year-on-year to 2.92%. Total loan-loss reserves reached EUR 22,850 million, resulting in an NPL coverage ratio of 67% ( +3 pp year-on-year) . u The Group's cost of risk improved 5 bps year-on-year to 1.13%, in line with our target for 2025. Cost of risk in Retail and Consumer, which accounted for approximately 80% of the Group's net loan-loss provisions, improved to 0.89% and 2.06%, respectively, compared to the same period in 2024.

u The CET1 ratio ended September 2025 at 13.1%, having increased 0.1 pp in the quarter, and is slightly above the top end of our operating range of 12–13% and our 2025 target. A solid contribution from attributable profit growth in the quarter more than offset charges related to capital distributions 2 , net RWA growth and other negative effects. Profitable growth in RWAs, which are being originated with RoRWAs above back book profitability, is strengthening our future organic capital generation and improving the Group's profitability and value creation.

Note: in this section, results are presented on an underlying basis and loans and advances to customers, customer funds and other metrics include Poland, in line with previously published quarterly information, i.e. maintaining the same perimeter that existed at the time of the announcement of the Poland disposal. For further information, see the ' Significant events in the period ' and ' Alternative performance measures ' sections in this report.

1. CET1 ratio on a phased-in basis, calculated in accordance with the transitory treatment of the CRR.

2. In line with our current ordinary shareholder rem