Company: BCDRF
Filing Date: 2025-04-30
Form Type: 6-K
Source: 0000891478-25-000078
Chunk: 5

Company: Banco Santander, S.A.
Filing Date: 2025-04-30
Form: 6-K
Chunk 5
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. Of note was the positive net interest income performance, as excluding Argentina (strongly impacted by the sharp fall in interest rates) net interest income increased 4% in constant euros, with most global businesses growing. Higher customer activity and network benefits were reflected in net fee income (+4%, +9% in constant euros), growing in most global businesses except Consumer. u The structural changes we have implemented to move towards a simpler and more integrated model through ONE Transformation continued to contribute to better costs, efficiency gains and profitable growth. Costs decreased 1% in current euros, in line with our 2025 year-end target. The efficiency ratio improved 0.8 pp year-on-year to 41.8% driven mainly by Retail and Payments.

u Credit quality remains robust, supported by the positive overall macroeconomic environment and employment across our footprint. The NPL ratio improved 10 bps year-on-year to 2.99%. Total loan-loss reserves reached EUR 22,980 million, resulting in an NPL coverage ratio of 66%. u The Group's cost of risk improved 6 bps year-on-year to 1.14%, in line with our target for 2025. In Retail, the cost of risk improved to 0.91%, and in Consumer, the ratio was practically stable at controlled levels (2.14%). Retail and Consumer accounted for more than 80% of the Group's net loan-loss provisions.

u As at end March 2025, the CET1 ratio stood at 12.9%, having increased 0.1 pp quarter-on-quarter, supported by +33 bps of organic generation, mainly resulting from gross profit generation (+53 bps) which amply offset RWA growth in the quarter, and +12 bps in markets and others. The ratio was impacted by a 27 bp deduction for the accrual of shareholder remuneration against profit earned in Q1 2025, in line with our 50% payout target 2 , and 8 bps in regulatory charges.

1. Dec-24 ratio on a fully-loaded basis (as published in the Q4 2024 Financial Report), excluding the transitory treatment of IFRS 9 and the CRR2. Mar-25 ratio on phased-in basis, calculated in accordance with the transitory treatment of the CRR.

2. In line with our current ordinary shareholder remuneration policy of approximately 50% of the Group's reported profit (excluding non-cash, non-capital ratios impact