Company: BCDRF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0000891478-25-000054
Chunk: 905

Company: Banco Santander, S.A.
Filing Date: 2025-02-28
Form: 20-F
Chunk 905
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 effect on us.

2.1.5 We may not be able to detect or prevent money laundering and other financial crime activities fully or on a timely basis, which could expose us to additional liability and could have a material adverse effect on us.

2.1.6 Changes in taxes and other assessments may adversely affect us.

2.2 Credit risks

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.

2.2.2 The value of the collateral securing our loans may decline and not be sufficient, and we may be unable to realize the full value of the collateral securing our loan portfolio.

2.2.3 We are subject to counterparty risk in our banking business.

2.3 Operational and technology risks

2.3.1 Any failure to improve or upgrade our information technology infrastructure and information management systems in an effective, timely and cost-effective manner, including in response to new or modified privacy, data protection and cybersecurity laws, rules and regulations, could have a material adverse effect on us.

2.3.2 Any failure or disruption of our operational processes or systems, or cyberattacks, data breaches, data losses and other security incidents with respect to our or our third-party vendors’ systems could adversely affect our business or reputation, and create significant legal, regulatory or financial exposure.

2.3.3 We rely on third parties and affiliates for important products and services.

2.3.4 We utilize artificial intelligence, which could expose us to liability or adversely affect our business.

2.4 Liquidity and funding risks

2.4.1 Liquidity and funding risks are inherent in our business and could have a material adverse effect on us.

2.4.2 Credit, market and liquidity risk may have an adverse effect on our credit ratings and our cost of funds. Any downgrade in our credit rating would likely increase our cost of funding, require us to post additional collateral or take other actions under some of our derivative and other contracts and adversely affect our interest margins and results of operations.

2.5 Market risks

2.5.1 Our financial results are constantly exposed to market risk. We are subject to fluctuations in interest rates and other market variables, which may materially and adversely affect us and our profitability.

2.5.2 We are subject to market, operational and other related risks associated with our derivative transactions that could have a material adverse effect on us.

2.5.