Company: BCDRF
Filing Date: 2025-07-31
Form Type: 6-K
Source: 0000891478-25-000113
Chunk: 53

Company: Banco Santander, S.A.
Filing Date: 2025-07-31
Form: 6-K
Chunk 53
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 drop in new car registrations in the EU in H1 2025 and our focus on profitability over volumes are reflected in a 5% year-on-year drop in new business volumes in constant euros (mainly new auto). However, the stock of gross loans and advances to customers, excluding reverse repos and in constant euros, continued to rise, +3% year-on-year, mainly driven by auto balances. Customer deposits, excluding repos and in constant euros, grew 10%, particularly driven by demand deposits, in line with our strategy to increase retail funding. Mutual funds increased 15% in constant euros, albeit from low levels. Our access to wholesale funding markets remains strong and diversified. Results Profit before tax in H1 2025 declined 4% year-on-year to EUR 727 million. In constant euros, profit before tax also fell 4%, as follows: • Total income remained resilient in a more complicated operating environment, as the strong performance in net interest income (+4%), backed by our active margin management and volumes growth, and better leasing income did not fully offset the impact on net fee income from new insurance regulation in Germany and the drop in new car registrations in the EU and a fall in gains on financial transactions (interest rate cuts driving weaker hedging results). • Costs rose just 0.6%, less than inflation (-2% in real terms), supported by the benefits from the transformation, simplification and centralization of our operating model, which remains one of our key priorities. • Net loan-loss provisions rose 6%, mainly in Germany, driven by the macro environment and worse credit quality in corporates. • Other gains (losses) and provisions recorded a lower loss, due to the temporary levy on revenue earned in Spain recorded in Q1 2024. Compared to Q1 2025, profit before tax increased 4% in constant euros, with a strong performance in net operating income after provisions (+21%), mainly backed by solid net interest income growth (+4%) and lower costs and net loan-loss provisions (supported by portfolio sales in the Nordic countries), partially offset by higher provisions related to the CHF mortgage portfolio in Poland.

| DCB Europe. Underlying income statement     |     |       |       |     |     |       |     |          |     |        |       |     |    |       |     |          |
| EUR million and % change                    |     |       |       |     |     |       |     |          |     |        |       |     |