Company: BCDRF
Filing Date: 2025-07-30
Form Type: 6-K
Source: 0000891478-25-000105
Chunk: 36

Company: Banco Santander, S.A.
Filing Date: 2025-07-30
Form: 6-K
Chunk 36
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 1.31% +34bps RoTE post-AT1 19.5% +6.5pp • Customers up 11% YoY, driving loans and deposits increase across most global businesses. Mutual funds grew double digits • Strong profit growth YoY, boosted by both NII (UF and lower cost of deposits) and fees (payments and mutual funds), which amply offset higher costs (Gravity roll-out) and LLP normalization • Profit up QoQ, on the back of positive performance across main P&L lines Deposits €79bn -0%

51 Note: Jun-25 data and YoY changes (loans, deposits and mutual funds in current euros). (1) The exchange rate resulting from the sale of local bonds denominated in Argentine pesos in US dollars (dual denomination peso/dollar bonds). • In Q2 2024, given a significant divergence between the official exchange rate and inflation, we decided to start using an alternative exchange rate – This exchange rate was modelled by our Economic Research Team primarily taking into account the inflation differential of Argentina with respect to the US • Given the improved macroeconomic outlook in the country, from Q4 2024 we took the Dollar Contado con Liquidación (CCL)1 rate as a reference for this alternative exchange rate: – At the end of the year, the value of this exchange rate did not significantly differ from other market rates or the official exchange rate • As a result, in Q3 2024 we used an FX rate of 1,618 ARS/EUR while in Q4 2024 we used 1,232 ARS/EUR, resulting in a higher quarter than previous ones – To give an idea of the sensitivity to the FX rate, applying September 2024 rate of 1,618 ARS/EUR, 2024 NII would have been negatively impacted by c.€700mn, c.40% of which would have been offset in other income, while costs would have been c.€250mn lower. • From Q2 2025, we once again apply the official exchange rate given that the value of the dollar CCL exchange rate does not significantly differ from other market rates or the official exchange rate following the lifting of currency controls and the removal of restrictions on the purchase of foreign currency for individuals in Argentina – In Q2 2025 we are using 1,401 ARS/EUR (FX corresponding the official exchange rate) • In an environment with higher activity, customers