Company: BCDRF
Filing Date: 2025-10-29
Form Type: 6-K
Source: 0000891478-25-000132
Chunk: 30

Company: Banco Santander, S.A.
Filing Date: 2025-10-29
Form: 6-K
Chunk 30
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 is a business with a strong advisory component and high value-added solutions and is less intensive in terms of balance sheet activity. The NPL ratio improved 1 bp in the quarter to 0.70%, backed by a 7% increase in total risk (mainly driven by the US, Brazil and Spain), which amply offset higher credit impaired loans. The cost of risk improved 11 bps compared to September 2024, reaching 0.10%, on the back of almost inexistent provisions in Q4 2024 and Q1 2025. Cost of risk was practically stable quarter-on-quarter (+1 bp). The NPL coverage ratio stood at 45%, relatively stable compared to June 2025.

|                   |     | Payments |     | Credit risk exposure |
| 2% of total Group |     |          |     |                      |

The Payments portfolio encompasses both the exposure associated with payments and transfer processing activities (PagoNxt) as well as the Cards businesses, which are characterized by rapid turnover and returns in line with their level of risk. The NPL ratio reached 5.54%, 43 bps higher than the previous quarter, driven by an increase in credit impaired loans, especially in Brazil, while total risk posted a slight increase quarter-on-quarter. The cost of risk rose 73 bps year-on-year, to 7.73%, on the back of higher provisions (mainly concentrated in Cards), due to strong loan growth in general and model changes and updates, in a less favourable macro environment in some of our countries. In the quarter, cost of risk registered a 19 bp increase. The NPL coverage ratio improved 5 pp in the quarter, reaching 136%. Market risk Despite the persistent uncertainty regarding the final economic impacts from the new trade policies in the US, markets saw less volatility in the quarter, due to the agreements reached with some of the US's commercial partners (such as the agreement reached with EU or the temporary tariff suspension with China). Geopolitical tensions, including the war in Ukraine and the conflict in Israel, continued to add to market uncertainty.

Trading activity in CIB is focused on meeting the needs of our clients. Its risk is measured in terms of daily VaR at 99% and originates from possible movements in interest rates. In Q3 2025, average VaR was EUR 15 million, below the previous quarter, in a slightly less volatile environment. Daily VaR registered a slight pick up at the end of the period, impacted