Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 953

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 953
---
 situations of economic stagnation, persistent housing oversupply, decreased housing demand, rising unemployment levels, increasing interest rates, subdued earnings growth, greater pressure on disposable income, a decline in the availability of mortgage finance or continued global markets volatility, for instance, home prices could decline, while mortgage delinquencies, forbearances and our NPL ratio could increase, which in turn could have a material adverse effect on our business, financial condition and results of operations. At 31 December 2024, the NPL ratio of residential mortgage loans for the Group in Spain and the UK was 1.32% and 1.07%, respectively.

At 31 December 2024, our total Group NPL ratio stood at 3.05% as compared to 3.14% at 31 December 2023. Coverage as of 31 December 2024 was 65% as compared to 66% a year earlier.

Impairment on financial assets not measured at fair value through profit or loss (net) in 2024 was EUR 12,644 million (mainly related to loans and advances to customers), a 2.4% decrease as compared to EUR 12,956 million in 2023.

| 901 |

| Contents |     | Cross-reference to Form 20-F |     | Consolidated director's report |     | Consolidated financial statements |     | Supplemental information |

At 31 December 2024, the gross amount of our refinancing and restructuring operations was EUR 27,144 million (3% of total gross loans and credits), of which EUR 8,254 million have real estate collateral. At the same date, the net amount of non-current assets held for sale totalled EUR 4,002 million, of which EUR 2,621 million were foreclosed assets.

2.2.2 The value of the collateral securing our loans may decline and not be sufficient, and we may be unable to realize the full value of the collateral securing our loan portfolio.

The value of the collateral securing our loan portfolio may fluctuate or decline due to factors beyond our control, including as a result of macroeconomic factors, especially those affecting Europe, North America and South America or the continuance or escalation of the wars in Ukraine and the Middle East. The value of the collateral securing our loan portfolio may be adversely affected by force majeure events, such as natural disasters (including as a result of climate change), particularly in locations where a significant portion of our loan portfolio