Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 846

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 846
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16,713 |       |
| Total exposureB                          |     |      | 22,470 |         |     | 5,620 |         |     | 3,870 |         |     | 31,960 |       |
| Loan-loss reservesC                      |     |      |    672 |         |     | 1,232 |         |     | 1,452 |         |     |  3,356 |       |

A. Detail of credit quality ratings calculated for Group management purposes.

B. Total exposure includes loan balances (drawn amounts) and off-balance (letters of credit + guarantees) and excludes REPOs, FV portfolio, trading portfolio and undrawn commitments.

C. Includes provisions for undrawn authorized lines (loan commitments).

For the expected losses estimation, prospective information should be taken into account. Specifically, SC USA considers fourmacroeconomic scenarios, periodically updated over a 5-year time horizon.

The evolution forecasted in 2024 for a period of five yearsof the main macroeconomic indicators used by in SC USA in the estimation of expected losses is shown below:

|                                 |     | 2025 - 2029 |      |                        |     |      |                        |     |      |               |     |     |                     |
| Variables                       |     |             |      | Pessimistic scenario 2 |     |      | Pessimistic scenario 1 |     |      | Base scenario |     |     | Optimistic scenario |
| Interest rate (annual averaged) |     |             |  1.9 | %                      |     |  2.7 | %                      |     |  3.4 | %             |     | 3.2 | %                   |
| Unemployment rate               |     |             |  6.3 | %                      |     |  4.8 | %                      |     |  4.2 | %             |     | 3.3 | %                   |
| House price change              |     |             | -0.1 | %                      |     |  0.4 | %                      |     |  1.1 | %             |     | 1.9 | %                   |
| GDP growth                      |     |             |  1.7 | %                      |     |  2.0 | %                      |     |  2.0 | %             |     | 2.6 | %