Company: BCDRF
Filing Date: 2025-07-31
Form Type: 6-K
Source: 0000891478-25-000111
Chunk: 6

Company: Banco Santander, S.A.
Filing Date: 2025-07-31
Form: 6-K
Chunk 6
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5 cents, boosted by the positive trends in profit and the share buybacks executed in the last 12 months .

u In terms of business volumes, growth of customer funds continued to outpace loans and advances to customers as we continued to focus on active capital management, disciplined capital allocation and profitable growth. Gross loans and advances to customers (excluding reverse repos) rose 1% year-on-year in constant euros, supported by increases in Consumer, Payments and Wealth, while in Retail and CIB decreased. Customer funds (customer deposits excluding repos plus mutual funds) rose 6% year-on-year in constant euros, increasing across global businesses, underpinned by double-digit growth in mutual funds and a rise in deposits in both demand and time deposits. u I n a less favourable environment than initially expected, shaped by g eopolitical and trade tensions, total income was EUR 31 billion, flat year-on-year (+5% in constant euros) and on track to meet our 2025 target. Of note was the positive net interest income performance ( +1% in constant euros and +4% excluding Argentina), with most global businesses growing. Higher customer activity and network benefits were reflected in net fee income (+9% in constant euros), growing in most global businesses except Consumer, impacted by new regulation in Germany and the drop in new car registrations in the EU. 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 slightly in current euros, in line with our 2025 year-end target. The efficiency ratio improved to 41.5%, the best efficiency ratio in more than 15 years, with notable improvements in Payments and Wealth.

u Credit quality remains robust, supported by positive employment across our footprint. The NPL ratio improved 11 bps year-on-year to 2.91%. Total loan-loss reserves reached EUR 22,441 million, resulting in an NPL coverage ratio of 67%. u The Group's cost of risk improved 7 bps year-on-year to 1.14%, in line with our target for 2025. Cost of risk of Retail and Consumer, which accounted for approximately 80% of the Group's net loan-loss provisions, improved to 0.89% and 2.09%, respectively, compared to the same period in 2024.

u As at end June 2025, the CET1 ratio stood at 13.0%, +0.1 pp