Company: BCDRF
Filing Date: 2025-07-31
Form Type: 6-K
Source: 0000891478-25-000113
Chunk: 160

Company: Banco Santander, S.A.
Filing Date: 2025-07-31
Form: 6-K
Chunk 160
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The recoverability of our loan portfolios and our ability to increase the amount of loans outstanding and our results of operations and financial condition in general, are dependent to a significant extent on the level of economic activity in Europe (in particular, Spain and the United Kingdom (UK)), North America (in particular, Mexico and the US) and South America (in particular, Brazil). The credit quality of our loan portfolio may deteriorate as a result of these risks and our loan loss reserves could be insufficient to cover our loan losses, which could have a material adverse effect on us. See risk factor '2.2.1 The credit quality of our loan portfolio may deteriorate and our loan loss reserves could be insufficient to cover our loan losses, which could have a material adverse effect on us' in our 2024 Form 20-F.

In addition, we are exposed to sovereign debt in these regions. Our net exposure to sovereign debt at 31 December 2024 amounted to EUR 198,627 million (10.81% of our total assets at that date) of which the main exposures in the eurozone relate to Spain and Portugal with net exposure of EUR 56,293 million and EUR 7,652 million, respectively. In North America, the main exposures relate to Mexico and the US (EUR 21,642 million and EUR 24,926 million, respectively) and in South America to Brazil (EUR 26,641 million). For more information on our exposure to sovereign debt, see note 54.b) 4.4 to our 'Consolidated financial statements' included in Part 1 of our 2024 Form 20-F. Recessionary conditions in the economies of Europe, North America or some of the South American countries in which we operate, would likely have a significant adverse impact on our loan portfolio and sovereign debt holdings and, as a result, on our financial condition, cash flows and results of operations.

Our revenues are also subject to risk of deterioration from unfavourable political and diplomatic developments, social instability, international conflicts, and changes in governmental policies, including expropriation, nationalization, international ownership legislation, sanctions, interest-rate caps, fiscal and monetary policies globally.

For the year ending 31 December 2024, 48% of the underlying profit attributable to the Parent came from Europe (of which 27% was from Spain and 10% from the UK), 28% from South America (18% from Brazil), 20% from North America (8% from