![Santander.jpg]() #### BANCO SANTANDER, S.A. #### ANNUAL REPORT #### FOR THE YEAR ENDED 31 DECEMBER 2025 TABLE OF CONTENTS | | | | --- | --- | | | | | [Part 1.- Consolidated directors’ report, auditor's report and consolidated financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_7) | [3](#i6ecb2a0d58d04b53bfadfa2a833efaa7_7) | | [Part 2.- Supplemental information](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1450) | [911](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1450) | #### Part 1. Consolidated directors´ report, auditor's report and #### consolidated financial statements ![1.port_ENG.jpg]() ![1.IntPort.jpg]() | | | | | --- | --- | --- | | | | | | 2025 Annual report Unless otherwise specified, references in this annual report to other documents, including but not limited to other reports and websites, including our own, are for information purposes only. If the contents of such other documents and websites refer to this annual report, they are not nor should be considered part of it. Unless the context suggests otherwise, 'Banco Santander' means Banco Santander, S.A., and 'Santander', 'the Group' and 'Grupo Santander' mean Banco Santander, S.A. and subsidiaries. | | | Annual report 20253 C [onsolidated directors’ report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_34) | | | --- | | | | | | | | | --- | --- | | | | | [Business model and strategy](#i85d73054200148b2b6b6b922d5e9b6fd) | [7](#i85d73054200148b2b6b6b922d5e9b6fd) | | | | --- | | | | | | | | | --- | --- | | | | | [The Santander Way](#i0ec89b2d7d164c2986081d34ade3311a) | [8](#i0ec89b2d7d164c2986081d34ade3311a) | | [Our business model](#if3e1f6d61f0b479bb7cba7e39c83c8cd) | [9](#if3e1f6d61f0b479bb7cba7e39c83c8cd) | | [2025 results](#i642f4f65ff73447e9e6521194d63e429) | [10](#i642f4f65ff73447e9e6521194d63e429) | | [Looking ahead](#i95f355aa113d4acd897ea5f90e00c3c0) | [16](#i95f355aa113d4acd897ea5f90e00c3c0) | | | | | --- | --- | | | | | [Sustainability statement](#ib73d4e03cb8144bfab2c626ea05fcc39) | [17](#ib73d4e03cb8144bfab2c626ea05fcc39) | | | | --- | | | | | Consolidated non-financial information and sustainability information statement | | | | --- | --- | | | | | [1. Sustainability at Santander](#iea5387bac1504c5f81e13f2e2f04d000) [(General information)](#iea5387bac1504c5f81e13f2e2f04d000) | [21](#iea5387bac1504c5f81e13f2e2f04d000) | | [2. Climate transition plan](#ic44b781906f44ecf8fa6b414b449d72e) [(Environmental information)](#ic44b781906f44ecf8fa6b414b449d72e) | [31](#ic44b781906f44ecf8fa6b414b449d72e) | | [3. Supporting employees, communities and customers](#i12a69b8f6caf483bb36f97c6ac5eb0e3) [(Social information)](#i12a69b8f6caf483bb36f97c6ac5eb0e3) | [70](#i12a69b8f6caf483bb36f97c6ac5eb0e3) | | [4. Business conduct](#i5efbbebb586f41468ed3dd67519c9937) [(Governance information)](#i5efbbebb586f41468ed3dd67519c9937) | [93](#i5efbbebb586f41468ed3dd67519c9937) | | [Sustainability notes](#i40886ec218744a1eaeb5ab7b6d95c775) | [99](#i40886ec218744a1eaeb5ab7b6d95c775) | | [Independent verification report](#i17663445ceb74fc4afa43b64edf2195a) | [243](#i17663445ceb74fc4afa43b64edf2195a) | | [Other sustainability information](#i3ac8d57df72b46078556e689ece73be3) | [249](#i3ac8d57df72b46078556e689ece73be3) | | | | | --- | --- | | | | | [Corporate governance](#i4e126d383b0a4503824ae1ee9ec35d9a) | [251](#i4e126d383b0a4503824ae1ee9ec35d9a) | | | | --- | | | | | | | | | --- | --- | | | | | [1. 2025 overview](#i8dd2c09195614056b7036eee887eca61) | [253](#i8dd2c09195614056b7036eee887eca61) | | [2. Ownership structure](#i9528ababb93745f7af166f6cf76c7881) | [260](#i9528ababb93745f7af166f6cf76c7881) | | [3. Shareholders and general meeting](#i10fe26cbfe8647d2b72ca39b15bef333) | [266](#i10fe26cbfe8647d2b72ca39b15bef333) | | [4. Board of directors](#i662cd085269c4560b7ee3235b8513dcc) | [274](#i662cd085269c4560b7ee3235b8513dcc) | | [5. Senior management team](#i1ccb27f9c085440d95bcbbea0dc6e86b) | [324](#i1ccb27f9c085440d95bcbbea0dc6e86b) | | [6. Remuneration](#i5cd1d0ac6e7244da9057e02933307f63) | [326](#i5cd1d0ac6e7244da9057e02933307f63) | | [7. Group structure and internal governance](#i85ef1e714c3a4899a909bf4eaab7c91e) | [358](#i85ef1e714c3a4899a909bf4eaab7c91e) | | [8. Internal control over financial reporting (ICFR)](#ieb9f225df5ac41189d016c00eed440f7) | [361](#ieb9f225df5ac41189d016c00eed440f7) | | [9. Other corporate governance information](#i79e848e8624d41c391a98003afc47236) | [369](#i79e848e8624d41c391a98003afc47236) | | | | | --- | --- | | | | | [Economic and financial review](#i8c0c7b30733f4c978f188794cebb539f) | [409](#i8c0c7b30733f4c978f188794cebb539f) | | | | --- | | | | | | | | | --- | --- | | | | | [1. Economy, regulation and competition](#i9a41553f8eec4d889f2ddea0648c85fc) | [411](#i9a41553f8eec4d889f2ddea0648c85fc) | | [2. Significant events in 2025](#i5a94fae801f04355b6d37e994e09d523) | [417](#i5a94fae801f04355b6d37e994e09d523) | | [3. Group selected data](#ib5125ea8ceac4e1ba40adf7654b412a4) | [418](#ib5125ea8ceac4e1ba40adf7654b412a4) | | [4. Group financial performance](#i4ab9aaf8185a4f7c8f61628293b21e3b) | [420](#i4ab9aaf8185a4f7c8f61628293b21e3b) | | [5. Financial information by segment](#iaffb86d9288b400883869021faacbbcf) | [464](#iaffb86d9288b400883869021faacbbcf) | | [6. Alternative performance measures (APMs)](#iaeec09f00e7c4315b03e3cd73f716dc1) | [499](#iaeec09f00e7c4315b03e3cd73f716dc1) | | [7. Technological innovation: artificial intelligence,](#i237a8fd3ed4e45cab207dea454d2920a) [cybersecurity and fintech ecosystem](#i237a8fd3ed4e45cab207dea454d2920a) | [509](#i237a8fd3ed4e45cab207dea454d2920a) | | [8. Significant events since year end](#i34584e56392c4607a9c47311cf3a66ef) | [512](#i34584e56392c4607a9c47311cf3a66ef) | | [9. New reporting structure from 1 January 2026](#ied5fe202228147598ac8aec4e7fb2f02) | [513](#ied5fe202228147598ac8aec4e7fb2f02) | | [10. Trend information 2026](#i986c84c4705b4f54929e3e3bb5774b54) | [537](#i986c84c4705b4f54929e3e3bb5774b54) | | | | | --- | --- | | | | | [Risk management and compliance](#i6f258b0a4cc0408d9f87fd2fc6b1a37b) | [546](#i6f258b0a4cc0408d9f87fd2fc6b1a37b) | | | | --- | | | | | | | | | --- | --- | | | | | [1. Risk management and control model](#ifd267db8a3954cee9195a6debe7bab1e) | [548](#ifd267db8a3954cee9195a6debe7bab1e) | | [2. Credit risk](#i96598ae050aa498eac201948bd23efb4) | [556](#i96598ae050aa498eac201948bd23efb4) | | [3. Market, structural and liquidity risk](#i36ced9d3255e44b19ebe1f924fcac9fb) | [568](#i36ced9d3255e44b19ebe1f924fcac9fb) | | [4. Capital risk](#idb9254d8236e4f129818f9e6951b429e) | [580](#idb9254d8236e4f129818f9e6951b429e) | | [5. Operational risk](#i735ec6d47447491cbd989b7c8c057ca8) | [582](#i735ec6d47447491cbd989b7c8c057ca8) | | [6. Compliance risk](#i2efdd633cbad4518aa4409381b958b33) | [588](#i2efdd633cbad4518aa4409381b958b33) | | [7. Model risk](#i3570272e5bdb4eb899000b445c7ac7ab) | [594](#i3570272e5bdb4eb899000b445c7ac7ab) | | [8. Strategic risk](#i8320b2e599bd4ef2b3c6207486787f37) | [596](#i8320b2e599bd4ef2b3c6207486787f37) | | | | | --- | --- | | | | | [Glossary of terms, acronyms](#i6d13b15979b34cc3816f0a6a5b1b07c1) [and abbreviations](#i6d13b15979b34cc3816f0a6a5b1b07c1) | [599](#i6d13b15979b34cc3816f0a6a5b1b07c1) | [Auditor's report and consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_910) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_910) | | | --- | | | | | | | | | --- | --- | | | | | [Auditor's report](#ibda9bc5fd6854863b1910f6ecdaa8c80) | [609](#ibda9bc5fd6854863b1910f6ecdaa8c80) | | [Consolidated financial statements](#i234b0cca2e874fd99a8cd1369ecdb276) | [619](#i234b0cca2e874fd99a8cd1369ecdb276) | | | | | --- | --- | | | | | [Notes to the consolidated financial](#ia6e929d9e5d64feb92d1bb306f3cd438) [statements](#ia6e929d9e5d64feb92d1bb306f3cd438) | [635](#ia6e929d9e5d64feb92d1bb306f3cd438) | | [Appendix](#if459d0354ef844948f93501a1fb28f37) | [864](#if459d0354ef844948f93501a1fb28f37) | | | | | --- | --- | | | | | [General information](#ic7f69ecd980c4f66957d900cf9c322a7) | [908](#ic7f69ecd980c4f66957d900cf9c322a7) | Annual report 20254 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 2025 # consolidated # directors’ report #### This report was approved unanimously by our board #### of directors on 24 February 2026 #### Our approach to this document We changed the layout of our consolidated directors’ report in 2018 to include the contents previously provided in these documents, which we no longer prepare separately: • Annual report • Consolidated directors’ report • Annual corporate governance report • Board committee reports • Sustainability report • Annual report on our directors’ remuneration The consolidated directors’ report also includes all information required by Spanish Act 11/2018 on non-financial information and diversity and the information on sustainability prepared by the Group in accordance with the European Standards of Sustainability Reporting (ESRS). It can be found in the ['Sustainability statement'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) chapter, which constitutes the consolidated non-financial information statement and sustainability information. The consolidated directors' report is originally issued in Spanish. In the event of a discrepancy with this translation, the Spanish- version prevails. #### Auditors’ reviews As required by law, our 2025 consolidated directors’ report was subject to three reviews by our independent statutory auditors, PricewaterhouseCoopers Auditores, S.L. They can be summarized as follows: • PricewaterhouseCoopers Auditores, S.L. verified that the information in this report is consistent with our consolidated financial statements and that its contents comply with applicable regulation. For more details, see 'Other information: Consolidated management report section of the ['Auditor’s report'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) within 'Auditor's report and consolidated annual accounts'. • PricewaterhouseCoopers Auditores, S.L., issued a verification report, with limited assurance, on the Consolidated Non- Financial Information statement and the information on sustainability required under Act 11/2018 and under the European Standards of Sustainability Reporting (ESRS) included in this consolidated directors' report. To read the verification report, see the ['Independent verification report'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_280) in the 'Sustainability statement' chapter. • PricewaterhouseCoopers Auditores, S.L. issued an independent reasonable assurance report on the design and effectiveness of Banco Santander's internal control system over financial reporting, which can be found in section [8.6 'External auditor](#i6ecb2a0d58d04b53bfadfa2a833efaa7_613) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_613)' of the 'Corporate governance' chapter. #### Non-IFRS and alternative performance measures This report contains financial information prepared according to International Financial Reporting Standards (IFRS) and taken from our consolidated financial statements, as well as alternative performance measures (APMs) as defined in the Guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority (ESMA) on 5 October 2015, and other non-IFRS measures. The APMs and non-IFRS measures were calculated with information from Grupo Santander; however, they are neither defined or detailed in the applicable financial reporting framework nor audited or reviewed by our auditors. We use the APMs and non-IFRS measures when planning, monitoring and evaluating our performance. We consider them to be useful metrics for our management and investors to compare operating performance between accounting periods. Nonetheless, the APMs and non-IFRS measures are supplemental information; their purpose is not to substitute the IFRS measures. Furthermore, companies in our industry and others may calculate or use APMs and non-IFRS measures differently, thus making them less useful for comparison purposes. APMs using environmental, social and governance labels have not been calculated in accordance with the Taxonomy Regulation or with the indicators for principal adverse impact in SFDR. For more details on APMs and non-IFRS measures, see sections [6.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) ['Alternative performance measures (APMs)'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) and 9.2 'Alternative performance measures (APMs) of the new reporting structure' of the 'Economic and financial review' chapter and section [SN 9](#i6ecb2a0d58d04b53bfadfa2a833efaa7_268) ['Alternative performance measures (APMs)'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_268) of the 'Sustainability statement' chapter. Annual report 20255 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Sustainability information This report contains, in addition to financial information, sustainability-related information, including environmental, social and governance-related metrics, statements, goals, targets, commitments and opinions. The sustainability information can be found throughout the report but mostly in the ['Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) chapter. The sustainability information is provided in accordance with Directive 2022/2464 on corporate sustainability reporting (CSRD) and Law 11/2018 on non-financial and diversity reporting. Sustainability information  is not audited nor, save as expressly indicated under ‘Auditors’ reviews’, reviewed by an external auditor. Sustainability information is prepared following various external and internal frameworks, reporting guidelines and measurement, collection and verification methods and practices, which may materially differ from those applicable to financial information and are in many cases emerging and evolving. Sustainability information is based on various materiality thresholds, estimates, assumptions, judgments and underlying data derived internally and from third parties. Sustainability information is thus subject to significant measurement uncertainties, may not be comparable to sustainability information of other companies or over time or across periods and its inclusion is not meant to imply that the information is fit for any particular purpose or that it is material to us under mandatory reporting standards. The sustainability information is for informational purposes only, without any liability being accepted in connection with it except where such liability cannot be limited under overriding provisions of applicable law. #### Forward-looking statements Banco Santander hereby warns that this annual report contains 'forward-looking statements', as defined by the US Private Securities Litigation Reform Act of 1995. Such statements can be understood through words and expressions like 'expect', 'project', 'anticipate', 'should', 'intend', 'probability', 'risk', 'VaR', 'RoRAC', 'RoRWA', 'TNAV', 'target', 'goal', 'objective', 'estimate', 'future', 'ambition', 'aspiration', 'commitment', 'commit', 'focus', 'pledge' and similar expressions. They include (but are not limited to) statements on future business development, shareholder remuneration policy and non-financial information. However, risks, uncertainties and other important factors may lead to developments and results that differ materially from those anticipated, expected, projected or assumed in forward-looking statements. The important factors below (and others described elsewhere in this report), as well as other unknown or unpredictable factors, could affect our future development and results and could lead to outcomes materially different from what our forward-looking statements anticipate, expect, project or assume: • general economic or industry conditions (e.g., an economic downturn; higher volatility in the capital markets; inflation; deflation; changes in demographics, consumer spending, investment or saving habits; and the effects of the war in Ukraine, the uncertainties following the ceasefire agreement in the Middle East or the outbreak of public health emergencies in the global economy) in areas where we have significant operations or investments; • exposure to operational risks, including cyberattacks, data breaches, data losses and other security incidents; • exposure to market risks (e.g., risks from interest rates, foreign exchange rates, equity prices and new benchmark indices); • potential losses from early loan repayment, collateral depreciation or counterparty risk; • political instability in Spain, the US, the UK, other European countries and Latin America; • changes in monetary, fiscal and immigration policies and trade tensions, including the imposition of tariffs and retaliatory responses; • legislative, regulatory or tax changes (including regulatory capital and liquidity requirements) and greater regulation prompted by financial crises; • acquisitions, dispositions, integrations and challenges arising from deviating management’s resources and attention from other strategic opportunities and operational matters; • reputational risk and potential adverse reactions of stakeholders, including adverse effects on the market price of our securities; • climate-related conditions, regulations, targets and weather events; • uncertainty over the scope of actions that may be required by us, governments and other to achieve goals relating to climate, environmental and social matters, as well as the evolving nature of underlying science and industry and governmental standards and regulations; • our own decisions and actions, including those affecting or changing our practices, operations, priorities, strategies, policies or procedures; and • changes affecting our access to liquidity and funding on acceptable terms, especially due to credit spread shifts or credit rating downgrade for the entire group or core subsidiaries. Forward looking statements are based on current expectations and future estimates about Santander’s and third-parties’ operations and businesses and address matters that are uncertain to varying degrees, including, but not limited to developing standards that may change in the future; plans, projections, expectations, targets, objectives, strategies and goals relating to environmental, social, safety and governance performance, including expectations regarding future execution of Santander’s and third parties’ energy and climate strategies, and the underlying assumptions and estimated impacts on Santander’s and third-parties’ businesses related thereto; Santander’s and third-parties’ approach, plans and expectations in relation to carbon use and targeted reductions of emissions; changes in operations or investments under existing or future environmental laws and regulations; and changes in government regulations and regulatory requirements, including those related to climate-related initiatives. Forward-looking statements are aspirational, should be regarded as indicative, preliminary and for illustrative purposes only, speak only as of the date of approval of this annual report and are informed by the knowledge, information and views available on such date and are subject to change without notice. Banco Santander is not required to update or revise any forward-looking statements, regardless of new information, future events or otherwise, except as required by applicable law. Annual report 20256 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Past performance does not indicate future outcomes Statements about historical performance or growth rates must not be construed as suggesting that future performance, share price or earnings (including earnings per share) will necessarily be the same or higher than in a previous period. Nothing in this annual report should be taken as a profit and loss forecast. #### XHTML electronic format and XBRL tags This annual report was prepared in eXtensible HyperText Markup Language (XHTML) format. The consolidated financial statements and the notes to the consolidated financial statements that it includes, have been tagged with eXtensible Business Reporting Language (XBRL), in accordance with Directive 2004/109/EC and Commission Delegated Regulation (EU) 2019/815. To view the XBRL tags, you must open this document with an appropriate viewer. You can find this document with an XBRL viewer on Banco Santander's corporate website. #### Not a securities offer This annual report and the information it contains does not constitute an offer to sell, nor a solicitation of an offer to buy any securities. [Glossary of terms, acronyms and abbreviations](#i6ecb2a0d58d04b53bfadfa2a833efaa7_904) To facilitate a better understanding of this anual report, a glossary of terms, acronyms and abbreviations has been included at the end of the consolidated directors' report. Annual report 20257 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | ![2.Modelo_ENG.jpg]() Business model and strategy Annual report 20258 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### The Santander Way | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Our purpose | | | | Our aim | | | | Our how | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | To help people and businesses prosper | | | | To be the best open financial services platform by acting responsibly and earning the lasting loyalty of our people, customers, shareholders and communities | | | | Everything we do should be Simple, Personal and Fair | | | | | | | | | | | | | | ![Circulo eng.jpg]() Annual report 20259 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Our business model #### Generating value for our stakeholders | | | | | | --- | --- | --- | --- | | | | | | | CUSTOMER FOCUS | | | Building a digital bank with branches | | | | | | → Customer focus is the essence of our strategy. Our multichannel offering enables us to fulfil all our customers' financial needs, making us their global, trusted and responsive partner. → Our customer growth investments are centred around three basic things: providing great products at competitive prices, a frictionless digital experience and being a trusted financial partner. → We are building a digital bank with branches to make our customers' lives easier. By merging technology with human touch, we offer fully-digital products while ensuring our branches provide support and advice. This blend of innovation and personalization ensures our customers get the best of both worlds. | | | | | --- | --- | --- | | | | | | | 2024 | 2025 | | Total customers (mn) | 173 | 180 | | Active customers (mn) | 103 | 106 | | | | | | | --- | --- | --- | --- | | | | | | | SCALE | | | Global & in-market scale | | | | | | → Santander has a unique combination of global scale and local leadership. → Our activities are organized under five global businesses: Retail & Commercial Banking, Digital Consumer Bank, Corporate & Investment Banking, Wealth Management & Insurance and Payments. → These five global businesses support value creation based on the profitable growth and operational leverage that ONE Santander and network benefits provide. → Our global approach to technology and development of global platforms is helping us to provide our customers with cost competitive products and the best digital experience. | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | ONE Santander | | Global businesses | | | Retail | | | Retail & Commercial Banking | | | | | } | | | | | | | | | | | | | | Consumer | | | Digital Consumer Bank | | | | | } | | | | | | | | | | | | | | CIB | | | Corporate & Investment Banking | | | | | } | | | | | | | | | | | | | | Wealth | | | Wealth Management & Insurance | | | | | } | | | | | | | | | | | | | | Payments | | | Payments | | | | | } | | | | | | | | | | | | | | | From 2026 onwards, Digital Consumer Bank and Payments will be renamed Openbank and Payment Solutions, respectively. | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | | | | | | | DIVERSIFICATION | | | Business, geographical and balance sheet | | | | | | → Our simple and well-targeted range of products and services meets the needs of a wide spectrum of customers: individuals, SMEs, mid-market companies, large corporates, Wealth Management customers, first-time banking customers, auto customers and dealers. → Santander has a strong, simple and diversified balance sheet in terms of products, businesses and markets, with a very low exposure to market risk and is highly collateralized and made up mainly of loans. → Diversification and a medium-low risk profile deliver recurrent pre- provision profit, with among the lowest volatility across peers. | | | --- | | | | Group net operating income (pre-provision profit) | | EUR billion | ![28587302329935]() | | | --- | | | | Our unique business model and consistent execution of our strategy provide higher returns and value creation for our shareholders and, at the same time, lower volatility | Annual report 202510 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 2025 #### results #### Record results for the fourth consecutive year with a strong growth of 8 million new #### customers | | | --- | | | | → Record profit , underpinned by higher customer activity → Strong operating performance and profitability on the back of ONE Transformation → Solid balance sheet with robust credit quality and very strong organic capital generation → Capital productivity and disciplined capital allocation are driving double-digit value creation | | | | | | | --- | --- | --- | --- | | | | | | | FY'25 Attributable Profit | | Fees | | | | | | | | €14.1bn +12% | | €13.7bn +5% | | | | | | | | Efficiency ratio | | RoTE | | | | | | | | 41.2% –0.6pp | | post-AT1 | pre-AT1 | | | 16.3% +0.8pp | 17.1% +0.8pp | | | | | | | CoR | | CET1 | | | | | | | | 1.15% -0pb | | 13.5% +0.7pp | | | | | | | | TNAVps + DPS | | EPS | | | | | | | | +14% YoY | | +17% YoY | | Note: YoY changes. In constant euros: FY'25 attributable profit +16% and fees +9%. CET1 ratio on a phased-in basis, i.e. in accordance with the transitory treatment of the CRR. YoY comparison based on published Dec-24 ratio, which was calculated on a fully-loaded basis. TNAVps + Cash DPS includes the €11.00 cent cash dividend per share paid in May 2025 and the €11.50 cent cash dividend per share paid in November 2025, both forming part of our shareholder remuneration policy. #### Delivering on all our 2025 and key Investor Day targets | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | 2025 | | | 2023-25 | | | | | | | | 2025 | Targets | | 2023-25 | ID targets | | | Revenue | | u | | €62.4bn | c.€62bn | ü | +8% CAGR 22-25 | c.7-8% CAGR 22-25 | ü | | Fees | | u | | +9% | Mid-high single digit growth | ü | +7% CAGR 22-25 | c.8-9% CAGR 22-25 | | | Cost base | | u | | -1% in euros | Down vs. 2024 in euros | ü | +4% CAGR 22-25 | c.4-5% CAGR 22-25 | ü | | Efficiency ratio | | u | | | | | 41.2% in 2025 | c.42% in 2025 | ü | | CoR | | u | | 1.15% | c.1.15% | ü | 1.15% in 2025 | c.1.0-1.1% | | | CET1A | | u | | 13.5% | 13% operating range 12-13% | ü | 13.5% in 2025 | >12% post-Basel III | ü | | RoTE | | u | | 16.3 post-AT1 | c.16.5% post-AT1 | ü | 17.1% pre-AT1 | in 2025 | 15-17% pre-AT1 | ü | | TNAVps + Cash DPS | | u | | +14% | Double-digit growth through-the-cycle | ü | +14% CAGR 22-25 | Double-digit growth through-the-cycle | ü | Note: data and YoY changes in constant euros, unless otherwise indicated. TNAVps + Cash DPS includes the €11.00 cent cash dividend per share paid in May 2025 and the €11.50 cent cash dividend per share paid in November 2025, both forming part of our shareholder remuneration policy. A. CET1 ratio is phased-in, calculated in accordance with the transitory treatment of the CRR. Annual report 202511 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Our unique business model and execution of our strategy deliver higher returns with #### lower volatility ![10 años eng.jpg]() A. % of operating areas, excluding the Corporate Centre. LatAm includes Rest of the Group. B. Calculated using quarterly data from Jan-99 to Q3’25. Source: Bloomberg, with GAAP criteria. Standard deviation of the quarterly EPS starting from the first available data since Jan-99. Value creation, driven by higher profitability, underpinned by three tenets: | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | Think Value | | | Delivering double-digit value creation, on average through-the-cycle | | | | | | | | | | | | | | | | | | | | | | | | | Think Customer | | | Building a digital bank with branches with well-targeted products and services to grow our customer base | | | | | | | | | | | | | | | | | | | | | | | | | Think Global | | | Leveraging global and in-market scale, network and tech to deliver world class-services and accelerate profitable growth | | | | | | | | | | | | --- | | | | | Annual report 202512 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Think Value #### Delivering double-digit value creation, on average through-the-cycle → Delivering on all key Investor Day targets FY'25 vs. 2025 ID targets (incl. upgrades in Q4’24) | | | | | --- | --- | --- | | | | | | | | | | | Strength | | | | | | | | | | | | CET1 13.5% 13% | operating range: 12-13% | | | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | Shareholder remuneration | | | | | | | | | | | | | | | Payout 50% 50% target payout cash dividend + SBBB | Additional SBBA €6.7bn At least €10bn total SBB 2025-26B | | ![TNAV eng.jpg]() | | | | | --- | --- | --- | | | | | | | | | | | Disciplined capital allocation | | | | | | | | | | | | RWAs with RoRWA > CoE 89% c.85% | | | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | Profitability | | | | | | | | | | | | | | | RoTE post-AT1 16.3% c.16.5% | RoTE pre-AT1 17.1% 15-17% | | #### Think Customer #### Building a digital bank with branches with well-targeted products and services to grow our customer base → We are committed to delivering simple, lovable, life-centric products and experiences for customers ![DigitalBank EN.jpg]() | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | | | 2024 | 2025 | | Customer centric | Total customers (mn) | | 173 | 180 | | | | | | | | | | | | | | Simplification & automation | Efficiency ratio (%) | | 41.8 | 41.2 | | | | | | | | | | | | | | Customer activity | Active customers (mn) | | 103 | 106 | | | | | | | A. Share buybacks already executed or launched in 2025 and 2026 to date, against the'at least €10bn Total SBB 2025-26' target. The €6.7bn amount includes i) €1.7bn share buyback against H1’25 results, already completed on 23 December 2025, ii) €1.8bn share buyback against H2’25 results, announced on 3 February, for which the regulatory approval has been received, and iii) €3.2bn additional share buyback to distribute approx. 50% of the CET1 capital generated following the completion of the sale of 49% of Santander Bank Polska to Erste Group on 9 January 2026, as announced on 3 February 2026, for which the regulatory approval has been received. Additionally, €3.3bn against future results and excess capital are expected to be executed, subject to future corporate and regulatory decisions and approvals. B. For more details, see section [3.3 ‘Dividends and shareholder remuneration’](#i6ecb2a0d58d04b53bfadfa2a833efaa7_496) in the ‘Corporate governance’ chapter. Annual report 202513 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Think Global #### Leveraging global and in-market scale, network and tech to deliver world class-services and accelerate profitable #### growth → Our transformation and five global businesses structurally deliver higher revenue with lower costs, supporting our ambition to become the most profitable bank in every market where we operate #### Our five global businesses | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | RETAIL | | CONSUMER | | CIB | | WEALTH | | PAYMENTS | | | | | | | | | | | | Global business integrating our retail and commercial banking activities | | A digital bank that combines state-of- the-art technology with a personal and human touch | | Our global platform to support corporate and institutional clients | | Common service models for our private banking, asset management and insurance activities | | Single infrastructures for payment solutions | #### We are a global Retail and Consumer powerhouse with 180 million customers #### Strong results underpinned by growth across our five global businesses | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | 2025 vs. 2024 | Revenue (€ bn) | Contribution to Group revenue | Efficiency | Profit (€ bn) | RoTE post-AT1 | Profitability 2025 targets | | | | | | | | | | | | | | Retail | 31.2 -0% | 50% | 39.4% -0.1pp | 7.7 +9% | 17.7% -0.4pp | c.17% | ü | | | Consumer | 13.0 +4% | 21% | 40.6% +0.5pp | 1.7 +8% | 8.6% -0.3pp | c.12% | | | | CIB | 8.5 +5% | 13% | 45.5% +0.0pp | 2.8 +7% | 19.1% +1.8pp | c.20% | ü | | | Wealth | 4.2 +14% | 7% | 35.3% -2.9pp | 2.1 +27% | 68.5% -8.4pp | c.60% | ü | | | Payments | 6.0 +17% | 9% | 39.2% -5.3pp | 0.9A +50% | PagoNxt EBITDA margin 34.5% +7.0pp | >30% | ü | | | | | | | | | | | Note: YoY changes in constant euros. Contribution to Group revenue as a percentage of total operating areas, excluding the Corporate Centre. Global businesses’ RoTEs are adjusted based on Group’s deployed capital; targets have been adjusted for AT1 costs. A. Payments YoY variation excluding the PagoNxt write-downs in Q2’24 of our investments related to our merchant platform in Germany and Superdigital in Latin America (€243mn, net of tax and minority interests). Annual report 202514 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Retail & Commercial Banking Driving operational leverage through ONE Transformation, while delivering a differential customer experience through our digital bank with branches ![Retail eng.jpg]() Note: data and YoY changes in constant euros. A. Metrics cover all products and employees in the branch network in our 10 main countries. #### Digital Consumer Bank #### Scaling our digital bank and global platforms while optimizing the funding structure ![Consumer eng.jpg]() Note: data and YoY changes in constant euros. ANEAs: average net earning assets, including renting. Annual report 202515 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Corporate & Investment Banking #### Leveraging our strengths to better serve our corporate customers and institutions ![CIB eng.jpg]() Note: data and YoY changes in constant euros. #### Wealth Management & Insurance #### Accelerating our customers’ connectivity with our global product platforms ![Wealth eng.jpg]() Note: data and YoY changes in constant euros. Assets under management includes deposits and off-balance sheet assets. Revenue including ceded fees includes all fees generated by Santander Asset Management and Insurance, even those ceded to the commercial network, which are reflected in Retail’s P&L. Annual report 202516 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Payments #### Seizing a growing opportunity by capturing scale through global platforms ![Payments eng.jpg]() Note: data and YoY changes in constant euros. # transactions include merchant payments, cards and electronic A2A payments. Payments volume includes Total Payments Volume (TPV) in Getnet and Cards spending. Like-for- like excludes perimeter effects, mainly the decision to discontinue the merchant platform in Germany and Superdigital in Q2 2024. | | | --- | | | | | #### Looking ahead #### Santander is now AT SCALE IN ALL OUR CORE MARKETS which will accelerate our value #### creation in the next strategic cycle | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Targets market dependent | | | | | | | | | | | | | | | | | | | | | | Revenue growth | | Costs | | Profit | | CET1 | | 2026 Excluding Poland, TSB and Webster in 2025-26 | | Mid-single digit in constant euros | | Down in constant euros | | Up vs. €14.1bn in 2025 | | 12.8-13% operating range: 12-13% | | | With fees growing more than NII | | Resulting in positive operational leverage | | | | | | | | | | | | | | 2027 including TSB and Webster | | Double digit in constant euros | | Positive operational leverage | | Up mid teensA in constant euros | | >13% operating range: 12-13% | | | | | | | | | | | | 2028 | Imagen12.jpg | | | RoTEB >20% | | | | | | | | | | | | | | | | Assuming CoR stable | | | | | | | | | | | | | | | | | | | | At least double-digit TNAVps + DPS growth through the cycle | | | | | | | | | Note: targets market dependent. Based on macro assumptions aligned with international economic institutions. CET1 targets including all the impacts from inorganic transactions. A. Excluding the capital gain resulting from the sale of Santander Bank Polska to Erste Group in 2026, as well as TSB and Webster integration and restructuring charges. B. 2028 RoTE is post-AT1. Annual report 202517 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | ![3_Estado_ENG.jpg]() Sustainability statement Consolidated non-financial information statement and sustainability information Annual report 202518 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### About this chapter This report shows the performance of Grupo Santander in 2025 in those environmental, social and governance issues that have been identified as material (for the purposes of this report, materiality is aligned with the European Corporate Sustainability Reporting Directive - CSRD). | | | --- | | | | | #### Scope The information contained covers the core activities of Banco Santander and its subsidiaries from 1 January to 31 December 2025 (for more details, see Notes [1](#i6ecb2a0d58d04b53bfadfa2a833efaa7_949) , [2](#i6ecb2a0d58d04b53bfadfa2a833efaa7_970) , [3](#i6ecb2a0d58d04b53bfadfa2a833efaa7_991) and [53](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1240) to the consolidated financial statements and sections [3](#i6ecb2a0d58d04b53bfadfa2a833efaa7_664) and [4](#i6ecb2a0d58d04b53bfadfa2a833efaa7_691) in the 'Economic and financial review' chapter). The scope of information and changes in criteria applied with respect to the 2024 Sustainability statement, when significant, are reflected in each relevant section and generally in the '[Sustainability note 1](#i6ecb2a0d58d04b53bfadfa2a833efaa7_217)' of this chapter. | | | --- | | | | | #### Regulation, reporting standards and other references #### that this chapter addresses This chapter contains the 'Consolidated non-financial information statement and sustainability information' of Grupo Santander, in compliance with Directive (EU) 2022/2464, with regard to the presentation of information on sustainability by companies, prepared in accordance with the European Sustainability Reporting Standards (ESRS) framework, comprising Commission Delegated Regulation (EU) 2023/2772 and Commission Delegated Regulation (EU) 2025/1416, and in compliance with Law 11/2018, which amends Article 49 of the Commercial Code, and the Regulation on European Taxonomy (Regulation (EU) 2020/852 and Commission Delegated Regulations 2021/2139 and 2021/2178 as amended by Delegated Regulations (EU) 2022/1214, 2023/2485, 2023/2486 and 2026/73). Likewise, the information included in the section [2 'Climate, our transition plan](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73)' allows the Group to address the requirements of Law 7/2021 on climate change and Royal Decree 214/2025 of the Spanish legal system. | | | --- | | | | | #### External validation PricewaterhouseCoopers Auditores, S.L., an independent firm charged with auditing the financial statements of Banco Santander S.A. and the Group, issued a verification report, with limited assurance, on the Consolidated Non-Financial Information and sustainability statement  required under Act 11/2018 and the European Sustainability Reporting Standards (ESRS). The report’s conclusion can be found in the ['Independent verification report'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_280) at the end of this chapter. For more details on the preparation and levels of control of sustainability information, see the 'Sustainability information' section in the introductory pages of this consolidated management report 2025, and the 'Sustainability note [1](#i6ecb2a0d58d04b53bfadfa2a833efaa7_217) and [2](#i6ecb2a0d58d04b53bfadfa2a833efaa7_223)' in this chapter. | | | | --- | --- | | | | | | For more details, see ['Sustainability information'](#ib60f7757939d4a1398b11568b2ec4e4d_12378) in the introduction of this Annual report | Annual report 202519 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Contents | | | | --- | --- | | | | | [About this chapter](#if1e09ef0e2f24831bdcbd8f153134a3b) | [18](#if1e09ef0e2f24831bdcbd8f153134a3b) | | [Sustainability 2025 summary](#if42ed6b4cca940f894efea0037bb229f) | [20](#if42ed6b4cca940f894efea0037bb229f) | | [1. Sustainability at Santander](#iea5387bac1504c5f81e13f2e2f04d000) [(General information)](#iea5387bac1504c5f81e13f2e2f04d000) | [21](#iea5387bac1504c5f81e13f2e2f04d000) | | [1.1 Sustainability strategy](#i1ba22c8cc41148d7894ebdca6ba0b0b5) | [21](#i1ba22c8cc41148d7894ebdca6ba0b0b5) | | [1.2 Materiality assessment](#i326bc50485c24a1e9ae470ba2004c6b0) | [23](#i326bc50485c24a1e9ae470ba2004c6b0) | | [1.3 Stakeholder engagement](#idad2e4e6bd894f588a0ea20a56df7307) | [25](#idad2e4e6bd894f588a0ea20a56df7307) | | [1.4 Sustainability governance](#i9252a11e37754c7b8e7e6ffb1d738241) | [29](#i9252a11e37754c7b8e7e6ffb1d738241) | | [2. Climate transition plan](#ic44b781906f44ecf8fa6b414b449d72e) [(Environmental information)](#ic44b781906f44ecf8fa6b414b449d72e) | [31](#ic44b781906f44ecf8fa6b414b449d72e) | | [2.1 Climate Strategy](#i4b674a3281424f02b80da76bfa69a903) | [31](#i4b674a3281424f02b80da76bfa69a903) | | [2.2 Supporting our customers' transition](#icd63536466a3491eb464585d42e2cfd8) | [33](#icd63536466a3491eb464585d42e2cfd8) | | [2.3 Embedding ESG factors in risk management](#ie7fb5950fed04bc691afda0495a55078) | [39](#ie7fb5950fed04bc691afda0495a55078) | | [2.4 Aiming to align our activity with the Paris](#icf534494cb8749918609c31679146a8b) [Agreement Goals](#icf534494cb8749918609c31679146a8b) | [55](#icf534494cb8749918609c31679146a8b) | | [2.5 Further actions and enablers](#ie3e9825ab79847c59a5ca74ed27d1404) | [68](#ie3e9825ab79847c59a5ca74ed27d1404) | | [3. Supporting employees, communities](#i12a69b8f6caf483bb36f97c6ac5eb0e3) [and customers](#i12a69b8f6caf483bb36f97c6ac5eb0e3) [(Social information)](#i12a69b8f6caf483bb36f97c6ac5eb0e3) | [70](#i12a69b8f6caf483bb36f97c6ac5eb0e3) | | [3.1 Our employees](#i66765efbdb0b46d4b435dee6109d72e9) | [70](#i66765efbdb0b46d4b435dee6109d72e9) | | [3.1.1 Talent and skills development](#i0da6e352fd19461c8992d2cc031054c1) | [70](#i0da6e352fd19461c8992d2cc031054c1) | | [3.1.2 Working conditions](#if8648ef0353e49c0a438d46bf24119f9) | [72](#if8648ef0353e49c0a438d46bf24119f9) | | [3.1.3 Inclusive culture](#i9faff5d324f741fa881be0c4afeced2f) | [75](#i9faff5d324f741fa881be0c4afeced2f) | | [3.1.4 Employee feedback and experience](#ib34abba29daf437696cbad7d650ca1cd) | [76](#ib34abba29daf437696cbad7d650ca1cd) | | [3.2 Sustainable development in our communities](#ibdbab8fa41ce4a4e81c9a9493276a323) | [77](#ibdbab8fa41ce4a4e81c9a9493276a323) | | [3.2.1 Supporting the economic and social](#i677a29099ba74740b16f17b451f37363) [development of our communities](#i677a29099ba74740b16f17b451f37363) | [77](#i677a29099ba74740b16f17b451f37363) | | [3.2.2 Responsible investment and social finance](#i3597df769c0f4bb993cf6836ae03675c) | [77](#i3597df769c0f4bb993cf6836ae03675c) | | [3.2.3 Management of environmental and social](#i53f4694cc9e24efeb8df0a85e2663d3e) [aspects](#i53f4694cc9e24efeb8df0a85e2663d3e) | [80](#i53f4694cc9e24efeb8df0a85e2663d3e) | | [3.2.4 Community Support](#ia3754ff2774c495b81eb4071cae5680c) | [81](#ia3754ff2774c495b81eb4071cae5680c) | | [3.3 Our customers](#i3bc88a79f567492abca013803fb644db) | [85](#i3bc88a79f567492abca013803fb644db) | | [3.3.1 Conduct with customers](#i01729a824e4144379c17fddf9e22954a) | [86](#i01729a824e4144379c17fddf9e22954a) | | [3.3.2 Financial inclusion and financial health](#ieefb867a2f8d4ccfb52f3c8ac6e8ede8) | [88](#ieefb867a2f8d4ccfb52f3c8ac6e8ede8) | | [3.3.3 Privacy, data protection and cybersecurity](#i14da50b46bdb467687dbc8da8beee765) | [91](#i14da50b46bdb467687dbc8da8beee765) | | | | | --- | --- | | | | | [4. Business conduct](#i5efbbebb586f41468ed3dd67519c9937) [(Governance information)](#i5efbbebb586f41468ed3dd67519c9937) | [93](#i5efbbebb586f41468ed3dd67519c9937) | | [4.1 Corporate culture](#i1b6828f2489e48cb9b037d427b2013ba) | [93](#i1b6828f2489e48cb9b037d427b2013ba) | | [4.2 Ethical conduct](#if2efd642c7794113925e981becb178e0) | [94](#if2efd642c7794113925e981becb178e0) | | [4.3 Ethical channels](#if351f9f0727d4830aa0168df5ddab552) | [96](#if351f9f0727d4830aa0168df5ddab552) | | [4.4 Our suppliers](#if6c9d57b094f47e59915f2b69004cf39) | [98](#if6c9d57b094f47e59915f2b69004cf39) | | [Sustainability notes](#i40886ec218744a1eaeb5ab7b6d95c775) | [99](#i40886ec218744a1eaeb5ab7b6d95c775) | | [SN 1. Introduction, basis of the consolidated](#i868a16aca9264f33be5d6f567549b40b) [sustainability statement and other information](#i868a16aca9264f33be5d6f567549b40b) | [99](#i868a16aca9264f33be5d6f567549b40b) | | [SN 2. Sustainability governance](#ie68e5850ceaf45448a1330f99198bb16) | [110](#ie68e5850ceaf45448a1330f99198bb16) | | [SN 3. Materiality assessment – Detailed](#i4005fa0ef4f3489f9d1cc5c5f924b6aa) [methodology](#i4005fa0ef4f3489f9d1cc5c5f924b6aa) | [114](#i4005fa0ef4f3489f9d1cc5c5f924b6aa) | | [SN 4. Climate transition plan](#ifdc56c0580ce4a5082f8227dabe94a50) | [123](#ifdc56c0580ce4a5082f8227dabe94a50) | | [SN 5. EU Taxonomy](#iced6ab5fef7e4e63930e55a9225a4902) | [125](#iced6ab5fef7e4e63930e55a9225a4902) | | [SN 6. Classification system and funding framework](#i6e4662116b4c4a33bc2eb2b810a14f1b) | [127](#i6e4662116b4c4a33bc2eb2b810a14f1b) | | [SN 7. Our progress in figures](#if266c0535b2b4f56b1de6811a45e1947) | [129](#if266c0535b2b4f56b1de6811a45e1947) | | [SN 8. Additional metrics to comply with Spanish](#i297d9b8c9ad64f90bed47309f74af4a7) [Act 11/2018](#i297d9b8c9ad64f90bed47309f74af4a7) | [226](#i297d9b8c9ad64f90bed47309f74af4a7) | | [SN 9. Alternative performance measures (APMs)](#i9fe69f7c45da4f678a2a1a2d9d6d4181) | [227](#i9fe69f7c45da4f678a2a1a2d9d6d4181) | | [SN 10. Non-financial information Act 11/2018](#ieb03d31e894e4050bcf7ffa5b97dc25f) [content index](#ieb03d31e894e4050bcf7ffa5b97dc25f) | [230](#ieb03d31e894e4050bcf7ffa5b97dc25f) | | [SN 11. Commission Delegated Regulation (EU)](#i7c8dec8972c44bf6a06f161cc5253025) [2023/2772 on sustainability reporting](#i7c8dec8972c44bf6a06f161cc5253025) [standards content index](#i7c8dec8972c44bf6a06f161cc5253025) | [235](#i7c8dec8972c44bf6a06f161cc5253025) | | [Independent verification report](#i17663445ceb74fc4afa43b64edf2195a) | [243](#i17663445ceb74fc4afa43b64edf2195a) | | [Other sustainability information](#i3ac8d57df72b46078556e689ece73be3) | [249](#i3ac8d57df72b46078556e689ece73be3) | | [Table of equivalence between CSRD and ISSB](#if016c66b49a943b6adb39735d2a08d2d) | [249](#if016c66b49a943b6adb39735d2a08d2d) | Annual report 202520 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | ### Sustainability ### 2025summary #### We help people and businesses prosper | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | | | | | | | | | | CountrySide.gif | We contribute to the economic, financial and social development of our communities. | | | | | | | | | | | → EUR 332.9 billion to help people buy homes, enabling 3.6 million families to access housing. EUR 209.7 billion to purchase other goods. A | | | | → EUR 318 billion to help set up or grow companies (including 743,000 SMEs and sole traders).B | | | | → EUR 12.3 billion paid to suppliers. 92% are local and account for 90% of total procurement turnover. | | | | → EUR 9.6 billion in taxes paid by the Group and EUR 12.5 billion in third party taxes channelled to tax authorities. | | | | → EUR 163.7 million in community support, helping 9.9 million people and organizations. Since 2023, we have allocated EUR 311 million to promote education, employability and entrepreneurship. | | | | | | | | --- | --- | --- | | | | | | | | | | StockSchange.gif | We help our customers progress in their sustainability goals. | | | | | | | | | | | → EUR 174 billion in green finance raised and facilitated since 2019, reaching our EUR 120 billion target 18 months early. | | | | → Additionally, our credit stock in green mortgages and auto aligned with EU Taxonomy grew 8% . | | | | → We reached  EUR 129.9 billion in assets under management in socially responsible investment, reaching our EUR 100 billion target nine months early. | | | | | | | | | | | | --- | --- | --- | | | | | | | | | | SecurityPerson.gif | We offer a range of products and services tailored to our customers’ needs. We follow responsible practices, support their financial inclusion, and protect their information. | | | | | | | | | | | → 6.3 million new people financially included since 2023, reaching our 5 million target to 2025 half year early. → Our microfinance propositions in Latin America reached 1.8 million underbanked entrepreneurs with EUR 1.26 billion in credit disbursed. | | | | | | | | | | | | --- | --- | --- | | | | | | | | | | People3.gif | We help our employees develop by promoting an inclusive culture and lifelong learning, and by providing fair working conditions. | | | | | | | | | | | → 198,403 employees. EUR 13.6 billion paid in wages and benefits.C → 38.5% of our senior leaders are women. | | | | | | | | | | | | --- | --- | --- | | | | | | | | | | PublicBuilding.gif | We act responsibly through a strong culture, governance and conduct. | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | We help people and businesses prosper by providing responsible, accessible financial solutions in the markets where we operate. | | We take business driven decisions to create sustainable value for our shareholders. | | We identify and manage material risks in accordance with local law and regulation and our risk appetite to support long-term resilience. | | | | | | | | | | | We engage with our stakeholders and consider their views to act in the long-term interests of our business and our customers. | | We deploy our business model to tackle global challenges creating profit with purpose. We believe economies function best when open, fair and rules-based competition can thrive. | | Our goals are designed to identify and capture opportunities, aiming to help our customers' in their sustainability goals. | | | | | | | | | | A. Credit stock and mortgage holdings as at 31 December 2025. The credit stock figure excludes information relating to Santander Bank Polska S.A. and its subsidiaries B. Credit stock as at 31 December 2025. Data for small and medium enterprises (SMEs) and sole traders covers individual customers with an outstanding loan at 2025 year end. The credit stock figure excludes information relating to Santander Bank Polska S.A. and its subsidiaries C. Does not include information relating to Santander Bank Polska S.A. and its subsidiaries Annual report 202521 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 1. Sustainability at Santander #### (General information) #### 1.1 Sustainability strategy Grupo Santander’s purpose is to help people and businesses prosper. We aim to be the best open financial services platform by acting responsibly and earning the lasting loyalty of our employees, customers, shareholders and communities. Grupo Santander serves over 180 million customers worldwide through our unique combination of global scale and local leadership. We’re among the top 3 in lending, deposits and mutual funds in most of our core markets. Our leadership position speaks to our scale and the competitive advantage that our integrated model affords. Our diverse customer base includes individuals, SMEs, large corporates, high net worth clients and others, all with varying financial needs and expectations that can change overnight. Our simple, tailor-made products and services, coupled with our multichannel proposition, seek to meet those needs. Santander has c. 200,000 employees and our activities are organized under five global businesses: Retail and Commercial Banking; Digital Consumer Bank; Corporate and Investment Banking; Wealth Management and Insurance; and Payments. | | | | --- | --- | | | | | | For more details on the value chain, see [SN 1](#i6ecb2a0d58d04b53bfadfa2a833efaa7_217)[.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_217) For more details on the distribution of employees by geographical area, see [Table 6](#i23f9fb5f929046d98e601e31f4353e8c_0-0-1-3-3384596) in [SN 7.3 Employees](#i6ecb2a0d58d04b53bfadfa2a833efaa7_250) | Our sustainability strategy focuses on matters that pose material opportunity, risk and impact to Santander (see section [1.2](#i6ecb2a0d58d04b53bfadfa2a833efaa7_67) ['Materiality assessment'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_67)) and has five pillars: 1. Help our customers in meeting their goals in their transition to a low-carbon economy while also managing climate-related risks and impacts. 2. Help our employees develop by promoting an inclusive culture and learning and providing fair working conditions. 3. Contribute to the economic, financial and social development of our communities, with a special focus on education, employability and entrepreneurship. 4. Be a trusted partner to our customers, with products and services that adapt to their needs, while applying responsible practices, supporting their financial inclusion, and protecting their information. 5. Act responsibly through a strong culture, governance and conduct. Our sustainability strategy is informed by the regulatory frameworks of the markets where we operate, in accordance with local law and regulation, and it is shaped by public policies. It embeds the Group’s three action lines: Think Value, Think Customer and Think Global to drive business growth and become more resilient to increasing environmental, governance and social risks. → Think Value: Profitable growth makes us resilient and able to withstand shocks, invest in our employees and customer value proposition, support our communities, and create value for our shareholders. → Think Customer: Be the partner of choice for our customers by offering the best products and helping them in their transition to a low-carbon economy and support their financial inclusion and financial health (including financial education). → Think Global: Use our scale and local leadership to tackle global sustainability challenges. Having cemented the foundations of our strategy, the Group is focusing on a new phase of execution to accelerate operational transformation, continue our path of customer growth, and strengthen sustained value creation, leveraging in our global scale. #### Embedding our sustainability strategy Santander’s sustainability strategy forms part of the Group’s strategic plan, three-year financial plans, and annual budget. Our Chief Executive Officer (CEO) leads the preparation of our financial plan every year. The plan includes sustainability targets and priorities that are consistent with our long-term strategy and the applicable law and regulation. The strategy committee, executive committee and the Group board of directors review the plan’s outcome. Furthermore, all global businesses and each subsidiary have their own financial plan that is reviewed to make sure it aligns with the Group plan. The Risk function conducts an analysis and challenge of the strategic plan to identify potential threats that may compromise the achievement of the Group's objectives. The risk control committee and the board's risk supervision, regulation and compliance committee discuss the outcome of this analysis. Additionally, Santander has internal policies that establish the principles, key processes, roles and responsibilities, and the governance and tools associated with the management of risks arising from environmental, social and governance factors. We base this model on the Group's risk principles and culture; a clear governance structure; and advanced risk management tools and procedures. Annual report 202522 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Santander regularly conducts an emerging risks exercise to identify key threats to our strategic plan under theoretical stress scenarios with low likelihood of occurrence. This exercise also considers climate change factors such as physical and transition risk in accordance with local law and regulation. We aim to detect, assess and monitor risks that may have a significant impact on our business model, profitability and solvency to keep our strategy robust. | | | | --- | --- | | | | | | For more details, see chapter [1.4 'Sustainability governance'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_70) | The Group’s sustainability strategy is implemented across the five global businesses and metrics and targets that in some cases form part of our remuneration schemes. #### Corporate and Investment Banking Our ambition is to be a strategic partner for our customers by helping them achieve their transition and sustainability goals in a profitable way. We support our customers in pursuing those goals by offering them products and services that follow the strictest integrity standards. We focus on capturing business opportunities across strategic transition themes, such as scaling low-carbon infrastructure, accelerating emerging and enabling clean technologies, mobilising sustainable capital markets and supporting sustainable trade, supply chains and working capital. Please see section [2.2.1 'Corporate and investment banking (CIB)](#i6ecb2a0d58d04b53bfadfa2a833efaa7_94)' for further detail and case studies. We have been a leader in renewable energy project finance for a decade. We met our target of EUR 120 billion in green finance raised or facilitated (between 2019 and 2025) 18 months early. In 2025 we reached a total of EUR 174 billion in green finance raised or facilitated by year end. We also acted as adviser on several of the world’s biggest renewable energy financing transactions. We support our clients by evaluating the robustness of their transition plans and advising on key levers for improvement, manage climate risks and progress towards achieving their climate objectives in high-emitting sectors. Transition planning is assessed in context, considering developments of local economy plans and policy backdrop. #### Retail and Commercial Banking Our ambition is to be a driver of sustainable growth and to provide solutions for all our customers (individuals, SMEs, large corporates, and institutions). We offer products and services that are designed to aid the energy transition of homes and businesses according to best market practice and to support the profitable and sustainable growth of our business customers. We adapt our value proposition to each market to align our action with local demands, regulation, macroeconomic landscapes, in accordance with local law and regulation. We also work closely with multilateral development banks in initiatives that support sustainable and energy transition in the markets where we operate. We measure the emissions of the key commercial and residential property portfolios in Portugal, Spain and the United Kingdom and agriculture portfolios in Brazil and identify alignment levers to our customers' transition. We also provide financial inclusion and health solutions. In June 2025, six months early, we reached our target to financially include five million people between 2023 and 2025, giving support to underbanked individuals through microfinance and banking access. By year end we reached 6.3 million new people reached through financial inclusion measures since 2023. Moreover, we run financial education activities, which often reinforce our financial inclusion programs. Additionally, Santander is aiming to provide EUR 400 million in support to education, employability and entrepreneurship between 2023 and 2026, while increasing the number of people engaged in these programmes, including through platforms such as Santander Open Academy. #### Digital Consumer Bank Our ambition is to continue supporting our customers’ transition, namely in the auto finance market — where we are global leader with more than 20 million customers — and the consumer finance market. We are supporting the transition by financing solutions that drive fewer emissions, in accordance with local law and regulation. For instance, through electric vehicle financing in Europe, where our market share in 2025 stood at over 10%, with EUR 7.3 billion in loans. An increased share of electric vehicles contributes to the alignment of the auto financing portfolio in Europe and to our 2030 alignment target. #### Wealth Management and Insurance Our ambition is to address our customers' investment demand, providing a sustainable proposition through our funds, portfolios, insurance products and advisory services. In March 2025, nine months early, we achieved our target of EUR 100 billion in assets under management in socially responsible investment (SRI). By year end this figure reached a total of EUR 129.9 billion. We continue to bolster our sustainable solution proposition for customers, including a wide range of fixed income, equity, mixed and alternative funds, as well as themed products focused on climate, energy transition and social well-being. Moreover, we have SRI life-savings portfolios and products, as well as the ability to build customized mandates around specific sustainability preferences. #### Payments We continue to make headway in lowering the environmental footprint of our cards by using sustainable materials and promoting the recycling of cards. In 2025, 97% of the cards we acquired were made of sustainable materials (recycled PVC / PLA), which backs our commitment to follow a more environmentally- friendly payment model. We are also promoting financial education and health among our customers through the creative Pay Smarter concept. PagoNxt aims at continuing contributing to financial inclusion of individuals, small businesses and sole traders in the communities where we operate, particularly in South America. | | | | --- | --- | | | | | | For more details on how our global businesses implement our sustainability strategy, see section  [2.2 Supporting our customers in their](#i6ecb2a0d58d04b53bfadfa2a833efaa7_91) [transition goals'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_91)' and [3.2 Communities' sustainable development](#i6ecb2a0d58d04b53bfadfa2a833efaa7_172) | 1 We identified and published 32 IROs in annual report 2024. To align material impacts, risks and opportunities with our management throughout 2025, we merged six IROs into three to give a new total of 29. Merged IROs: E1 opportunities (O Growth in the financing of renewable energy and other energy transition solutions). + O Revenue growth by providing our customers with sustainable solutions in such sectors as construction, mobility or agriculture), Negative impacts of S3 (I- Finance activities (in any customer segment) that breach the bank’s policies and jeopardize the well-being of present and future generations. +  I- Potentially negative impact on the environment or society by failing to sufficiently involve appropriate stakeholders or use suitable customer identification and management mechanisms when providing finance to a customer or project), Negative impacts of S4 (I- Negative impact on the customer if the bank fails to provide sufficient information on the product or service they are signing up for. + I- Negative impact on the customer by failing to guarantee access to, or the use of, products and services that may present certain obstacles or weak spots). 2 In accordance with local law and regulation Annual report 202523 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 1.2 Materiality assessment We presented our first double materiality assessment, which aligns with the CSRD, in 2024. This report is based on the same analysis disclosed in our previous Sustainability Statement, with minor amendments to align material impacts, risks and opportunities with our management throughout 2025. During 2026, we plan to update our DMA to inform our action starting from 2027. As regards the CSRD, this assessment sets out the sustainability topics that are material to Santander. We identify and manage our material sustainability impacts, risks and opportunities (IROs) by implementing appropriate governance, policies, actions, metrics and targets for them. We apply a pragmatic approach that focuses on supporting our business and resilience, in accordance with local law and regulation in the markets where we operate. We identified 29 IROs 1 within the five sustainability topics that are material to Grupo Santander: E1) Climate change (see section [2. 'Climate transition plan'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73)), S1) Own workforce (see section [3.1 'Our employees'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157)), S3) Affected communities (see section [3.2 'Sustainable development in our communities'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_172)), S4) Consumers and end users (see section [3.3 'Our customers'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_187)), and G1) Business conduct (see section [4. 'Business conduct'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199)). The table below breaks down the impacts (positive and negative), risks and opportunities of each topic. We manage them in accordance with local law and regulation. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Impact materiality | | | Financial materiality | | | | Sustainability topics (ESRS) | + | – | | Risk | Opportunity | | ÿ | E1: Climate Change | | | | | | | | E2: Pollution | | | | | | | | E3: Water and marine resources | | | | | | | | E4: Biodiversity and ecosystems | | | | | | | | E5: Resource use & circular economy | | | | | | | ÿ | S1: Own workforce | | | | | | | | S2: Workers in the value chain | | | | | | | ÿ | S3: Affected Communities | | | | | | | ÿ | S4: Consumers & end-users | | | | | | | ÿ | G1: Business conduct | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | ÿ Material | Thresholds: | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | g | Critical | g | Significant | g | Informative | g | Minimal | | | | | | --- | --- | --- | | | | | | E1 | | Climate change | | | I+ Contribution to protecting the environment by driving an increase in the use of renewable energy and other low-carbon technologies. I+ Contribution to reducing the Group’s scope 1 and 2 greenhouse gas emissions. I-   Adverse impact on climate and the environment due to the bank’s financing of, or investment in, certain non- sustainable assets and activities. O   Growth in the financing and investment in transition and clean tech solutions, supporting the economy and key sectors such as energy, construction, mobility and agriculture. R  Reputational risk based on the perception of the Bank's progress with Group climate-related policies and objectives in certain jurisdictions and that could lead to other type of risk implications. 2 | Annual report 202524 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | S1 | | Own workforce | | | I+ Promotion of the health, well-being and security of our employees in a safe and inclusive workplace; facilitate a positive work-life balance between personal and professional life through policies that foster the balance between them. I+ Promotion of a workforce that reflects the society we live in and encourages collaboration and provides opportunities for all our employees, irrespective of personal characteristics and in compliance with the law. I+ Promotion of  continuous career development and personal growth through learning and development programmes. I+ Promotion of the general well-being of employees and provide appropriate remuneration under equal conditions based on merit and market rates. I-  Harm employees if unlawful discriminatory conduct, inadequate working conditions, harassment or corruption occur. R  Potential risk of conflict with employees based on the infringement of their rights. | | S3 | | Affected communities | | | I+ Support of economic growth and job creation in the regions where we operate, providing credit to people and businesses. I+ Contribution to sustainable development through financing and investment that promotes sustainable performance in companies, addresses societal challenges, mitigates a specific issue, or pursues better societal outcomes. I+ Contribution to education, employability and entrepreneurship, as well as to community development through support programmes. I-   Finance activities (in any customer segment) that breach the bank’s policies and jeopardize the well-being of present and future generations or fail to sufficiently involve appropriate stakeholders or use suitable customer identification and management mechanisms when providing finance to a customer or project. | | S4 | | Consumers and end users | | | I+ Positive impact on customers due to the bank’s offer of products and services that adapt to their needs and expectations and promote financial inclusion and health. I+ Education on, and awareness of, cybersecurity to understand potential threats and ways to repel them. I-  Negative impact on the customer if they do not have access to complaints channels or if, after making a complaint, the bank fails to take the necessary action. I-   Negative impact on the customer if the bank fails to provide sufficient information on products or services or to guarantee access to, or the use of, products and services that may present certain obstacles or weak spots. I-   Potential infringement of customers’, employees’ or shareholders’ rights if a lack of appropriate technical or organizational measures to protect their personal data according to law and the practices set by the Group occur. R  Potential losses due to fines or a reduction in the number of customers if a failure to detect or respond effectively to breaches of privacy occur. R  Potential losses due to complaints or a reduction in the number of customers if substandard customer practices occur. | | G1 | | Business conduct | | | I+ Act responsibly and consider investors’ interests and the impact on employees, broader society and the environment; pay taxes to support the distribution of wealth. I+ Protect the confidentiality of users of the bank’s ethical channel and have an effective reporting system in place that follows robust principles and procedures. I+ Promote responsible practices among vendors; engage with them, assess their performance in environmental, social and governance (ESG) matters and give them recommendations and tools to improve. I-  Negative impact on the environment or broader society by failing to implement measures to resolve incidents through complaints or reporting channels or due to a lack of continuous improvement actions. I-  Harm broader society through bribery or corruption. R  Potential risk from failing to ensure the operational resilience of the value chain by assessing vendors’ solvency, reputation and compliance with the law. R  Risk stemming from improper conduct that makes illicit funds or assets appear legitimate and, therefore, facilitates illegal activity or to benefit from it. | Key:  I+ Positive impact  I- Negative impact  R Risk  O Opportunity Annual report 202525 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | We consider these five sustainability matters non-material (given that none of the impacts, risks and opportunities connected to them reach the materiality threshold): pollution; water and marine resources; biodiversity and ecosystems; resource and circular economy; and workers in the value chain. However, we address aspects of nature and biodiversity that are most closely related to climate objectives within our transition plan. | | | | --- | --- | | | | | | For more information, see section [2.3.5 'Our approach to nature](#i6ecb2a0d58d04b53bfadfa2a833efaa7_124) [and biodiversity'.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_124) | We conduct this assessment for the entire Group, including our own operations and our value chain, using the available information and tools; and by engaging our key stakeholders (see section [1.3 'Stakeholder engagement'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_64)). We also conducted a materiality assessment in all our subsidiaries, in accordance with local law and regulation, the findings of which provided feedback on the Group's materiality, while the Group's materiality informed local materiality. The results reflect a short to medium-term time horizon (~1-5 years) for which most of the information is available. However, a qualitative analysis suggests that if we used a long-term horizon, there would be no changes to the results and IROs that are material. The materiality assessment is connected to key risk management processes across the Group. It provides input for the emerging risks exercise and links to other internal risk exercises. | | | | --- | --- | | | | | | For more details, see section [2.3 'Embedding ESG in risk](#i6ecb2a0d58d04b53bfadfa2a833efaa7_109) [management'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_109) | The board of directors upon a proposal submitted by the responsible banking, sustainability and cultural committee approved the bank’s double materiality assessment, material impacts, risks and opportunities, and sustainability strategy. | | | | --- | --- | | | | | | For more details, see [SN 3. 'Materiality assessment methodology'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_226) | #### 1.3 Stakeholder engagement Santander maintains ongoing engagement with its stakeholders and does so guided by the principles of transparency, honesty and impartiality. This dialogue enables us to better understand their expectations, share our priorities and identify areas for improvement in our activities. We embed the insights gathered through this engagement, where relevant to do so, into the bank’s key processes, including strategy setting, financial planning and the formulation of objectives. The corresponding senior management committees at country, global business and Group level, and, where appropriate, the relevant governance bodies and the board, review and discuss these elements when presenting the results of the double materiality assessment and progress with the management of impacts, risks and opportunities (IROs). Our engagement approach is tailored to the characteristics of each stakeholder group. Through our various communication and listening channels, we identify key messages and expectations that inform our management decisions. In addition to these ongoing processes, we conduct targeted stakeholder engagement as part of the double materiality and due diligence exercises, which enables a deeper analysis of the most relevant aspects for each stakeholder group. The specific actions derived from this information, together with the associated monitoring mechanisms and governance model, are described in more detail in the related chapters of this report, as indicated by the corresponding links. In addition, we incorporate the perspective of so-called silent stakeholders (individuals or groups who do not directly participate in dialogue) through the analysis of external reports, sector studies and market intelligence. We adapt our stakeholder engagement objectives for each group: ![GruposInteresPuzzleENG.jpg]() The section below provides more details on each stakeholder group, the channels we use to engage with them, and the main information we collect. | | | | --- | --- | | | | | empleados.jpg | Employees | We run three main listening exercises: • Your Voice: our people, culture and organization function is responsible for the employee listening channel, which measures engagement and gathers feedback. An independent third party manages this feedback confidentially and provides us with aggregated information only to preserve the anonymity of employees and their responses. | | | | --- | --- | | | | | | For more details on the results and actions stemming from 'Your Voice', see section [3.1 'Our employees’.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) | Annual report 202526 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | • Canal Abierto: our compliance function is responsible for providing an anonymous and confidential channel to enable employees to report misconduct and breaches of the General Code of Conduct. This channel also receives reports from third parties, such as vendors, customers and investors. | | | | --- | --- | | | | | | For more details, see section [4.3 'Ethical channels'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_208) | • Dialogue with employees’ legal representatives: in addition to the above mechanisms, employees’ legal representatives play a key role as a spokesperson for our workforce. That's why we encourage and maintain permanent, fluid and direct dialogue, engagement and negotiation with them through trade unions and works councils. We also channel discussions on industrial relations through these representatives in the markets where they exist. In order that the relationship between the bank and employees’ legal representatives remains productive and fluid, we engage with them through: - Santander's bodies for engagement with employees’ legal representatives and through formal councils and committees set up for this purpose; - Meetings to address specific matters, direct contact and information exchange platforms. The Labor Relations function also facilitates mechanisms for communication between employees’ legal representatives and the people they represent and those affiliated to trade unions according to the regulations and agreements that apply in each market. | | | | --- | --- | | | | | | For more details on social dialogue see section [3.1 2'Working](#i6ecb2a0d58d04b53bfadfa2a833efaa7_163) [conditions’.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_163) | | | | | --- | --- | | | | | clientes.jpg | Customers | The listening process varies according to customer type: • Retail customers: the aim is to measure their satisfaction and experience in each of our core markets through regular Net Promoter Score (NPS) surveys following customer interactions. We also run a customer experience benchmark to help us identify our competitive positioning, with results twice a year. Both exercises aim to spot areas for improvement that we pull together in action plans with the relevant unit´s management committee oversight. | | | | --- | --- | | | | | | For more details on our complaints handling system, see section [3.3 'Our customers'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_187) | • Wholesale customers: we identify needs and areas for improvement as part of our customer relations and dialogue on an ad hoc basis. Bankers escalate the insights gain that either need management or provoke actions to adjust our commercial strategy. Customer feedback is also collected by customer interaction teams (customer experience and customer service team, among others) and fed back into key bank processes overseen by governance bodies. | | | | --- | --- | | | | | accioistas.jpg | Shareholders and investors | We engage with our shareholders and investors to strengthen ties and offer a value-added proposition that sets us apart. We use surveys, events, direct contact and other channels (with digital channels gaining traction) to enable close dialogue that helps this group understand the business better and communicate with senior management. For more details, see section [3.1 'Shareholder](#i6ecb2a0d58d04b53bfadfa2a833efaa7_490) [communication and engagement'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_490) in the 'Corporate governance' chapter. | | | | --- | --- | | | | | comunidades.jpg | Communities | To understand the needs and challenges of the communities where we operate, we gather information from several sources: • Individuals: The Customer Experience function runs mass surveys to learn about how the communities we serve perceive our actions. • Non-governmental organizations (NGOs): The Sustainability and Social Action functions engage in two-way communication with the leading civil organizations in our markets. | | | | --- | --- | | | | | | For more details, see section ['3.2.4 Community Support'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_184) | • Under our Environmental and social (E&S) risk management policy and the Equator Principles, we conduct analyses on the environmental and social risks that our activities might have on our communities, including the rights of indigenous populations, in accordance with local law and regulation. | | | | --- | --- | | | | | | For more details, see section' 3.2.3 [Management of environmental](#i6ecb2a0d58d04b53bfadfa2a833efaa7_181) [and social aspects'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_181) | 3 In line with our principles of transparency, honesty and impartiality, Grupo Santander may only finance political parties on an exceptional and arm's length basis, and with approval from the Group executive committee. These standards prohibit making monetary or in-kind donations and contributions to elections. Total or partial debt cancellation for political parties and their affiliates is strictly prohibited. While Grupo Santander may negotiate the terms of any political party debt, the interest rate charged must never fall below the market rate. Annual report 202527 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Our 2025 engagement in numbers | | | --- | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | People2Empleados.jpg | | People2Clientes.jpg | | People3Shareholders.jpg | | People3.jpg | | Employees 80% participation in our Your Voice survey A 4,507 reports received through ethical channels ( 2% over total headcount) A 141,684 employees answered the survey based on the total number of employees eligible to participate, i.e. employees who have been with the organization for less than 3 months, long-term absentees, employees without access to the corporate intranet, and employees without access to the corporate intranet are excluded. | | Customers Over 10.4 million surveys to customers 772,780 formal complaints received (4.3 per 1,000 customers)B B Calculated based on the Group’s total customer base at year-end 2025 (180 million). | | Shareholders & Investors 137,416 responses by retail shareholders and institutional investors through quality surveys and studies 4,673 responses by retail shareholders on Santander's perception 219 events with retail shareholders 1,511 interactions with institutional investors (55 on ESG matters) | | Our communities 218 interactions with NGOs enabled us to gather and address the needs of the communities where we operate and to understand the impact of our activities | | | | | | | | | Santander also engages with other stakeholders, including the political environment and public authorities; supervisors and regulators; banking sector; ESG rating agencies; as well as other relevant stakeholder groups. | | | | --- | --- | | | | | entorno.jpg | Political parties and authorities | We interact in political debate and with authorities in their role as policymakers on key topics that affect our sector, broader society and the environment 3. | | | | --- | --- | | | | | supervisores.jpg | Supervisors and regulators | We maintain ongoing dialogue with supervisors and regulators at local, European and international level, which enables us to understand their priorities and expectations and to work towards compliance with applicable requirements and recommendations. As part of the regulatory debate, we participate in consultations and initiatives relating to matters relevant to the Group, its employees, its customers and the communities it serves. Santander engages in dialogue with authorities such as the Basel Committee, the Financial Stability Board, the European Banking Authority, the European Central Bank, the institutions of the European Union, national central banks, ministerial representatives, members of government and parliamentarians, among other actors that contribute to shaping the regulatory framework, including sustainable finance. In 2025, the Group responded to 79 international and European consultations. In addition, Santander was represented at various meetings and forums related to the evolution of the sustainable finance framework, including the Brazilian G20 Presidency and United Nations Climate Change Conference 2025 (COP30) held in Belém in 2025, which provided opportunities for exchange with the relevant stakeholders. | | | | --- | --- | | | | | sector.jpg | Banking sector | We work closely with sector and non-sector bodies, including the Institute of International Finance, the Association for Financial Markets in Europe, the European Banking Federation, Business Europe and Digital Europe, as well as foundations and think tanks. We work together to find common ground on issues such as the implementation of the EU Taxonomy, the framework for sustainability disclosure and reporting, and ongoing efforts to pinpoint and manage climate-related risks. We take part in these debates through consultations, workshops and other channels and by facilitating the exchange of views between key stakeholders at events such as the International Banking Conference and other events that Banco Santander organizes every year. Annual report 202528 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | --- | --- | | | | | agencias.jpg | ESG rating agencies | In 2025, we maintained our position in MSCI (AA) and Leadership level in CDP (score changing from A to A-). We scored 9.9 points in Sustainalytics, improving to ‘Negligible Risk’ category, and remained in the C+ category in the bi-annual ISS assessment. | | | | --- | --- | | | | | é | | | Negl | 10 - 0 | | Low | 20 - 10 | | Med | 30 - 20 | | High | 40 - 30 | | Severe | 100 - 40 | | | | | | --- | --- | --- | | | | | | = | A | | | A | | Leadership | | A- | | | B | | Management | | B- | | | C | | Awareness | | C- | | | D | | Disclosure | | D- | | | | | --- | | | | = | | AAA | | AA | | A | | BBB | | BB | | B | | CCC | ![Sustainalytics_Logo.gif]() ![Carbon_disclosure_project_logo.gif]() ![msci-logo.gif]() A. In CDP we remain at Leadership level. | | | | --- | --- | | | | | DocumentRoll.jpg | Other relevant sustainability stakeholders | | | | Santander engages as well with other relevant sustainability stakeholders such as UNEP FI, Global Compact and WBCSD. We engage with them sharing our progress and gathering their feedback and guidance. UNEP FI Principles for Responsible Banking (UNEP FI PRB) Santander has been a member of the United Nations Environment Programme Finance Initiative (UNEP FI) since 1992 and a founding member of the Principles for Responsible Banking (PRBs) since its launch in 2019. UNEP FI feedback has informed our action during 2025: – Principle 1: Our sustainability strategy, integrated in the corporate strategy, is aligned with inclusive and sustainable growth (see section [1.1 'Sustainability strategy'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_61)), and focuses on matters that pose material opportunity, risk and impact to Santander. Our operations have the greatest impact on the SDGs 8, 13 and 16, while support as well the SDGs 1, 4, 5, 7, 10, 11, 12 and 17. – Principle 2: In our materiality assessment we identified 29 material impacts, risks and opportunities (IROs) in five sustainability matters (see section  [1.2 'Materiality](#i6ecb2a0d58d04b53bfadfa2a833efaa7_67) [assessment'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_67)) . For the impact estimation we used, among others, the UNEP FI tool. In this Sustainability Statement, we inform about our progress towards our objectives in climate (see section [2. 'Climate transition plan'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73)) and employees, customers and communities (see section [3. 'Supporting](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) [employees, communities and customers'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154)), among others. – Principle 3: Our Responsible Banking and Sustainability policy sets out the general principles, targets, objectives and strategy that should guide the Group's progress in sustainability, including how we support our customers' transition (see section [2.2 'Supporting our customers'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_91) [transition'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_91)) and financial health and inclusion (see section 3.3.2 'Financial health and inclusion'). – Principle 4: We proactively and continuously engage with our key stakeholders through various channels, as explained in this section. This engagement helps us to understand their priorities and concerns, and act accordingly. – Principle 5: Sustainability is embedded in our governance (see section [1.4 'Sustainability governance'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_70)) . The board of directors is responsible for approving the sustainability strategy and the board's committee (RBSCC) oversees the development of the strategy and policies. – Principle 6:  Our Consolidated non-financial information statement and sustainability information is verified through a limited review by an independent third party (see section ['Independent verification report'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_280), which can be found at the end of this chapter). Global Compact Santander has been a participant of the UN Global Compact since 2002. This Sustainability statement reflects our progress and support for the 10 Principles of the UN Global Compact in the areas of human rights, labour, environment and anti-corruption. World Business Council for Sustainable Development (WBCSD) We are members of WBCSD since 2015 and as such we gather their feedback and comments on our progress around the membership criteria and our sustainability statement. Annual report 202529 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 1.4 Sustainability governance The Group's board of directors is responsible, among other things, for approving the sustainability strategy. The responsible banking, sustainability and cultural committee assists, among other matters, in the development and implementation of the Group's sustainability strategy and responsible business policies, in support of the board of directors, through monitoring, supervision and evaluation of these. The committee works in coordination with other board committees which also analyse specific sustainability topics. The audit committee is responsible for supervising and reviewing the financial and non-financial information process, as well as the internal control systems. In turn, the risk supervision, regulation and compliance committee supports and advises the board of directors in defining and assessing the Group’s risk policies and in determining the risk appetite — current and forward-looking — as well as the strategy and culture in this area. For more information on the composition, operation and activities undertaken in 2025 by these committees, see [‘Corporate governance’](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) chapter. The overseeing of material sustainability issues, as well as the main lines of action for their management, are periodically reviewed through the bodies shown below, which together form the governance of the function: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | Santander Group board of directors Sets the sustainability strategy and prepares annual accounts and management report, which shall include sustainability statement, in accordance with local law and regulation | | | | | | | | é | | é | | é                                é | | | | | | | | | | | | | | | | | | | | Risk supervision, regulation and compliance committee Support the board of directors in determining the risk appetite. Oversee the integration of environmental, social and governance risks into management, in coordination with the responsible banking, sustainability and culture committee. | | Audit committee Reviews Banco Santander and Group financial statements and non financial information, monitor legal requirements compliance and assesses information and internal control systems. Assess the process for preparing and presenting non-financial information, including sustainability information, in coordination with the responsible banking, sustainability and culture committee. | | Responsible banking, sustainability and culture committee Advise the board of directors on the design of the responsible banking and sustainability strategy and policies. Oversee the integration of ESG risks into management, in coordination with the risk supervision, regulation and compliance committee. Assess the process for preparing and presenting non- financial information, including sustainability information, in coordination with the audit committee. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | é | | | é | | | é                                é | | | | | Executive & management level (main bodies & functions) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Risk control committee | | Accounting, financial management and sustainability information corporate committee | | | | Sustainability, risk, ESG Reporting and ESG businesses function | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | Defence lines: | | | | | | | | | | | | | | | | | 1 st line of defence (Business owners, general accounting and management and sustainability function) | | 2 nd line of defence (Risk & compliance) | | 3 rd line of defence (Internal Audit) | | | | | | | | | | ¢ Overall responsibility    ¢ Supervisory oversight    é Reporting    é Risk    é Impact    é Opportunities | | | | --- | --- | | | | | | For more details on  sustainability governance, see note ['SN 2. Sustainability governance'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_223). | 4 The Universal Declaration of Human Rights, the International Labour Organisation Declaration on Fundamental Principles and Rights at Work, the United Nations Guiding Principles on Business and Human Rights, the OECD (Organization for Economic Cooperation and Development) Due Diligence Guidance for Responsible Business Conduct, and others. Annual report 202530 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 1.4.1 Integration of sustainability-related #### performance in incentive schemes Grupo Santander’s remuneration policy reflects our strategic and long-term sustainability objectives and is aligned with the regulations in the markets in which we operate. Variable pay is based on pre- determined, specific and quantifiable financial, sustainability-based and value-creation targets, except where to do so for local employees would be in conflict with local laws. Our remuneration scheme integrates sustainability metrics consistent with Santander strategy, in accordance with local law and regulation. The long-term incentives (LTI) scheme applies to our top Groups' executives, including the Executive Chair and the CEO. Sustainability has formed part of the LTI schemes since 2022, with a 20% weighting. In 2025, 7% of the variable remuneration received by the Executive Chair and the CEO has been linked to sustainability (vs. 8%) in 2024), while 2% of their total remuneration has been linked to climate actions as last year. The sustainability component of short-term variable remuneration is evolving consistently with ESG risk management. Therefore, we are incorporating environmental and social risk management indicators, within the qualitative risk modifier of the Group’s short- term incentive framework for 2026 in accordance with local law and regulation (see section [6. 'Remuneration'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_562) in the 'Corporate Governance' chapter. The board of directors approve these sustainability incentives schemes on the basis of the proposal made by the responsible banking, sustainability and cultural committee and the remuneration committee. The proposal for 2026-2028 will be subject to vote at the Annual General Meeting in 2026, in accordance with local law and regulation (see section [6. 'Remuneration'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_562) in the 'Corporate Governance' chapter. 1.4.2 #### Human rights due diligence Santander seeks to respect and protect the human rights of stakeholders in the operations and countries where it operates, and these are reflected in management and governance practices. • the responsible banking and sustainability policy approved by the board of directors incorporates defence of human rights. • looking after our employees’ health and promoting decent employment, the preservation of freedom of association and collective bargaining and the prohibition of slavery and child labour. | | | | --- | --- | | | | | | For more details, see section [3.1 'Our employees'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) | • protecting our customers’ human rights through responsible business practices and the protection of their data. | | | | --- | --- | | | | | | For more details, see section [3.3 'Our customers'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_187) | • assessing the human rights impact on transactions with customers through environmental and social (E&S) analysis. | | | | --- | --- | | | | | | For more details, see section [3.2.3. 'Management of](#i6ecb2a0d58d04b53bfadfa2a833efaa7_181) [environmental and social aspects'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_181) | • embedding environmental and social aspects, including human rights, in our supply chain management. | | | | --- | --- | | | | | | For more details, see section [4. 'Business conduct'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199) | • Canal Abierto is a key tool to identify, manage and resolve potential human rights-related incidents or violations to protect our customers, employees, suppliers and the communities we serve. | | | | --- | --- | | | | | | For more details, see section [4.3 'Ethical channels'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_208) | The results of the human rights due diligence exercise informed the 2024 double materiality assessment. This exercise was carried out in line with international standards 4, including measures related to labour rights, customer protection and responsible business conduct in relevant activities. For more details on our human rights due diligence, see santander.com/en/our-approach/ policies. Annual report 202531 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 2. Climate transition plan #### (Environmental information) #### 2.1 Climate Strategy #### 2.1.1 Our approach Santander has identified material impacts, risks and opportunities in the double materiality assessment linked to climate. As required by the European Corporate Sustainability Reporting Directive (CSRD), below we disclose our transition plan, based on three pillars to support our customers and the communities we serve in their transition objectives; assess our customers’ climate-related risks to manage the impact on their business and on our operations; and work to the align our portfolios, in accordance with local law and regulation. 1 #### Supporting our customers in their transition goals | | | --- | | | | | We support our customers in the transition to a sustainable economy. We’re making headway with our target of raising or facilitating EUR 220 billion in green finance between 2019 and 2030, after having achieved our EUR 120 billion target eighteen months early. We offer our customers guidance, advice and specific solutions, as well as a wide range of products to invest in according to their sustainability preferences. Additionally, in March 2025, we reached our target of EUR 100 billion in assets under management (AUM) in socially responsible investment (SRI) nine months early. 2 #### Embedding ESG #### in risk management ![PlantLeaves.jpg]() | | | --- | | | | | We embed climate, environmental and social aspects in risk management from a regulatory and control perspective, including a materiality assessment that feeds into our double materiality assessment and sustainability strategy. 3 #### Aiming to align our activity with the Paris Agreement Goals ![WindPower.jpg]() | | | --- | | | | | We work aiming to align our portfolio with the Paris Agreement goals to help limit global warming. We either set sector portfolio alignment targets or portfolios under monitoring. We closed 2025 with six targets in five sectors, additional portfolios under monitoring and an alignment approach for our asset management activity. The management of these targets and portfolios under monitoring, in line with the rest of the IROs, is carried out in accordance with local law and regulation in the markets where we operate. Their update and evolution reflect the present and expected performance of the economies and customers we serve. In our own operations we continue to reduce our impact on the environment by implementing efficiency measures, achieving in 2025 our target of 100% renewable electricity in our main markets. To achieve this, we engage with our different stakeholders: • Customers: developing products/services adapted to their needs; participating in a collaborative network of institutions to create financing opportunities; and developing tools to assess the performance and progress of our customers’ transition plans. • Key climate actors: participating in local and international organizations, initiatives and working groups that help us develop capabilities. • Authorities: participating in debates with regulators, policymakers and supervisors on the most important climate- related developments to the bank and its employees, customers and the communities where we operate. • Communities: supporting a number of local initiatives to tackle climate change and environmental challenges, and generate positive social impact. Annual report 202532 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 2.1.2 Context: Challenges and opportunities The energy transition is progressing with increasing structural depth and being driven by technological developments and the growing competitiveness of low-carbon solutions. According to the World Economic Forum (WEF), the green economy has become one of the world's most potent drivers of growth (second only to the technology sector), with renewable energy expanding rapidly in over 80% of countries. Should this trend persist, installed renewable capacity could double by 2030, supported by solar energy, grid modernization, storage and electrification. According to the International Energy Agency (IEA), investment in clean energy in 2025 was higher than USD 2 trillion, which is twice the investment in fossil fuels (around USD 1 trillion) and shows a shift in the allocation of capital towards low-carbon technologies. This is evident in the job market, where there are now more people working in clean energy than in fossil fuels worldwide. Advances in technology also serve to reinforce this trend. According to the WEF, economically competitive solutions can mitigate over half of global emissions, which is enabling many sectors to set more precise transition pathways to 2030 and 2035. Several countries have updated their Nationally Determined Contributions (NDC) with more detailed plans. Some, including Brazil, Portugal, the UK and the US, have recorded double-digit declines in per-capita emissions over the past 20 years, driven by changes in the energy sector and land use. Nonetheless, global emissions continue to rise, and national commitments are yet to align fully with a pathway that is compatible with limiting warming to 1.5°C. Differences persist across regions and sectors. Global energy demand continues to grow, which makes it necessary to ramp up secure, affordable and sustainable wherever possible solutions. Against this backdrop, there is an opportunity to mobilize capital towards the transition and to support companies and governments in drawing up and implementing credible alignment strategies that are aligned with local laws and policy goals in each jurisdiction. Innovation, regulation, investment and technical advisory services will play a key role in turning current momentum into a deep, global transformation. #### 2.1.3 Our ambition Our approach is to help our customers transition to a low carbon economy by offering finance and advice, while we continue working towards net-zero carbon emissions by 2050. The transition will depend on a number of factors beyond our control, including public policy frameworks and incentives that accelerate alignment in the real economy, as well as continued technological developments supportive of the energy transition. Capital will flow to markets where risk-return and demand for sustainable technologies work. Policy and regulation are key enablers for this to happen; and this in turn, is reflected in our performance and the annual review. #### 2.1.4 Our #### objectives A | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | 2025/2030 target | | | Green finance raised and facilitated (accumulated EUR bn) B | 19.0 | 33.8 | 65.7 | 94.5 | 115.3 | 139.4 | 174.0 | | 120 bn by 2025 | ü | | | 220 bn by 2030 | | | AuM in Socially Responsible Investments (accumulated EUR bn) | | | 27.1 | 53.2 | 67.7 | 88.8 | 129.9 | | 100 bn by 2025 | ü | | Thermal coal-related power & mining phase out (EUR bn) | | | | | 4.4 | 4.2 | 2.3 | | 0 by 2030 | | | Emissions intensity of power generation portfolioC | | | | | 149 | 88 | | | 102 - 124 kgCO2e/ MWh in 2030 | | | Emissions intensity of oil & gas portfolioC,D | | | | | 3.08 | 3.15 | | | 2.31 - 3.03 tCO2e/TJ in 2030 | | | Emissions intensity of steel portfolioC | | | | | 1.47 | 1.51 | | | 1.17 - 1.28 tCO2e/tS in 2030 | | | Emissions intensity of auto-manufacturing portfolioC | | | | | 135 | 128 | | | 80 - 98 gCO2/vkm in 2030 | | | Emissions intensity of auto-lending portfolio C.E | | | | 137 | 133 | 129 | | | 70 - 109 gCO2e/vkm in 2030 | | | Electricity from renewable sourcesF | 50% | 57% | 75% | 88% | 97% | 96% | 100% | | 100% by 2025 | ü | In 2025: → we continue working to align our key portfolios; we also disclosed emissions for our mortgages and commercial real estate portfolios in Portugal, in addition to those of Spain and the UK; → we continued managing our own operations' scope 1 and 2 emissions', with reductions plans and offsetting remaining ones; and we kept our offices and buildings in our core markets free of single-use plastics to meet our target. A. The efforts to meet these targets are in accordance with local law and regulation. B. Includes Grupo Santander's contribution to green finance: project finance; green bonds; export finance and advisory services to help customers transition to a low-carbon economy. C. The figures displayed are the latest available given limited data availability from customers to assess financed emissions. We used Banco Santander's internal calculation methodology, which is based on the Partnership for Carbon Accounting Financials (PCAF), 2022. D. It includes scope 1 and 2 emissions from the upstream oil & gas portfolio. Scope 3 is considered in the primary energy mix index monitoring metric. E. Consumer lending for the purchase of passenger cars in Europe. F. In countries where we can verify electricity from renewable sources at Banco Santander properties. It considers the 10 core markets where we operate. For more details of the scope and update of targets, see section [2.4.1 'Aligning our portfolios'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_130). Annual report 202533 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 2.2 Supporting our customers' transition In this section we cover how Santander manages the following IRO: | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | I+ | Contribution to protecting the environment by driving an increase in the use of renewable energy and other low-carbon technologies. | | | | | | | | | O | Growth in the financing and investment in transition and clean tech solutions, supporting the economy and key sectors such as energy, construction, mobility and agriculture. | | | | | | | As a bank, our main lever is to support customers' transition. We continue to enhance our sustainable finance and advisory proposition in our global businesses by: 1. identifying trends and needs in the economies and customer segments we serve; 2. having commercial teams in place with the skills required to meet these needs, and 3. developing the support structure for these skills, including our value proposition, standards, governance, and systems. In Corporate & Investment Banking (CIB), we have reached EUR 174 billion in green finance raised and facilitated since 2019, achieving our EUR 120 billion by 2025 target, and are working towards reaching EUR 220 billion by 2030. In 2025, Wealth reached EUR 129.9 billion in assets under management (AuM) in socially responsible investment (SRI), reaching our EUR 100 billion target nine months early. We identify business opportunities by assessing key sectors, working closely with our customers, and harnessing the knowledge of our sustainability experts. The Group calculates the ratio of green assets that align with the European Taxonomy. In 2025, this ratio reached 3.35% (3.28% in 2024). The volume of assets as at 2025 year-end that aligned with the European Taxonomy was EUR 28.1 billion for mortgages and EUR 12.0 billion for auto. For more details, see [SN 5.'European](#i6ecb2a0d58d04b53bfadfa2a833efaa7_235) [Taxonomy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_235)'. Regarding investment through our assets management business SAM, the top three climate-related opportunities are: • new climate solutions that include products and services that boost diversification, competitive advantage and revenue; • lower-emission energy sources that benefit from less exposure to greenhouse gas (GHG) emissions, lower costs, and policy incentives; and • efficient production and distribution of resources to reduce operational costs and raise both production capacity and the value of fixed assets. #### Transition finance and just transition Our role in the transition entails contributing to sustainable development by supporting customers and economies according to their specific needs and circumstances. It is vital that the transition is just and inclusive, and considers regional and sector particularities to avoid isolating communities and stranding assets. We aim to embed and promote the just transition through our engagement approach, our risk management policies and processes, and our sustainable and investment products, in accordance with local law and regulation. We consider this approach when devising our policies and reviewing our Sustainable Finance and Investment Classification System (SFICS), which covers activities that aim to address or mitigate social and environmental issues; bring the spotlight on protecting the Amazon biome (given our operations in Brazil) and helping local communities. All transactions and products labelled as sustainable pass through ESG classification meetings to ensure alignment with the SFICS. We manage these transactions and products through an automated corporate tool that we have implemented in our core markets and that provides full decision traceability and comprehensive documentary support. #### 2.2.1 Corporate and investment banking (CIB) CIB has raised and mobilized 174 billion euros in green finance globally between 2019 and December 2025. The green finance target focuses on green use of proceeds (such as renewable energy) across products where well-recognized public information is available. | | | --- | | | | GREEN FINANCE VOLUMES FROM 2019 TO 2025 | | Raised or facilitated. EUR bn. | | | | | | --- | --- | --- | | | | | | 174 | | 220 | | 2019 | | 2030 | | | | --- | | | | 2025 GREEN FINANCE VOLUMES (TOTAL EUR 34.6 bn)  - SPLIT BY PRODUCT | | Raised or facilitated. EUR bn. | ![442]() DCM (Debt capital markets); M&A (Mergers and Acquisitions) Information obtained from public sources, such as Infralogic, Dealogic, TXF or Bloomberg league tables. All roles undertaken by Banco Santander in the same project are accounted for. Other sustainable finance components, such as financial inclusion and entrepreneurship, are excluded. Green Finance raised and facilitated is not a synonym of EU Taxonomy. Information from League Tables extracted by 12 January 2026, at the latest. Annual report 202534 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Santander’s sustainable finance proposition is built on long- standing expertise in renewable energy and a broad range of structuring, advisory and financing solutions across products, sectors and geographies. This approach is underpinned by the bank’s customer climate tiering methodology, which supports the identification of priority transition areas at client level and provides benchmarking to support alignment strategies. In 2025, Corporate & Investment Banking supported customers through a wide range of transactions addressing key aspects of the transition to a low- carbon economy. We ensure that our customer climate tiering approach remains in compliance with applicable local laws and regulations in the markets where we operate. The case studies below illustrate how this activity is deployed across strategic transition themes. #### Scaling low-carbon energy infrastructure Santander supported the development and expansion of renewable and low-carbon generation capacity across a wide spectrum of technologies. This included multiple advisory and financing roles in solar, offshore and onshore wind projects, hydroelectric as well as nuclear (Sizewell C in the UK) assets across our global footprint. Offshore Wind in Poland Santander acted as Financial Advisor to Equinor and Polenergia for Project Rondo in the financing of two offshore wind farm projects in Poland, with a combined value of over EUR 6 billion and a total capacity of 1,440 MW. This deal amounts to the largest ever financing raised in Poland and is Santander’s largest ever project finance advisory. It is also the first transaction on the market with the Polish export credit agency KUKE's cover in the form of a Green Guarantee, for which Santander also acted as Agent, and one of the largest projects supported by Euler Hermes. Onshore Wind in Finland Santander acted as the Sole Underwriter and Bookrunner for Project Amidala, project financing for two greenfield onshore wind farms in Finland with a total capacity of 472 MW. The project is sponsored by OX2 (owned by EQT), and has long term PPAs with a multinational corporate offtaker. Project Amidala is a landmark transaction in the Nordics, as the largest renewable energy deal in Finland to date and one of the largest in the region. Hydro in the United States Santander acted as Joint Placement Agent and Sole Structuring Agent in the market leading Smoky Mountain transaction. A USD 543 million financing of four hydroelectric facilities on the Cheoah and Little Tennessee rivers in North Carolina and Tennessee. The deal included a USD 435 million rated USPP alongside a USD 108 million Debt Service Reserve and Letter of Credit Facility. Smoky Mountain incorporated Santander's Variable Amortization structure, bringing the technology to a new geography and sector following its success in European renewables. Variable Amortization allowed enhanced debt sizing while derisking debt through a structure which ties amortization to asset performance, and Santander played a key part structuring the deal and assisting in the rating process. Smoky was also the first U.S. Private Placement/Institutional deal incorporating this technology and Santander was a lead agent, driving a successful placement process. #### Accelerating emerging and enabling technologies Battery energy storage represented a key focus area for Santander in 2025, due to its role in enabling renewable integration and grid stability. Santander advised and financed multiple storage platforms and projects across our global business platform. Battery Energy Storage System (BESS) in the United Kingdom Santander acted as Financial Advisor, Mandated Lead Arranger, Hedge Counterparty, Account Bank and LC Fronting Bank to Fidra Energy on the up to GBP 445 million platform equity capital raise, securing investment from EIG and the National Wealth Fund, as well as on the GBP 594 million greenfield debt financing of Thorpe Marsh. The transaction demonstrates Santander’s continued leadership in advising on, and financing, large battery storage projects critical for the energy transition. Thorpe Marsh is the UK’s largest battery energy storage project and the largest BESS financing in Europe. Solar and BESS in the United States Santander acted as Financial Advisor to Origis Energy on Brookfield & Antin's strategic investment to support the growth of its utility- scale solar and battery storage platform in the US. This investment will accelerate the deployment of utility-scale solar and BESS projects to increase zero-carbon generation and grid-firming storage capacity. This will strengthen Origis’s ability to deliver large-scale alignment solutions to customers and support the integration of more variable renewables. Santander also supported Origis Energy’s goal to grow its renewable platform by serving as Green Loan Coordinator in the portfolio project financing of two renewable energy projects in June 2025, and Co-Green Loan Coordinator for the project financing of a solar and BESS project in Q42025. #### Supporting capital rotation and platform development Santander supported customers in executing strategic M&A and equity transactions to recycle capital and support growth. This included multiple M&A and advisory roles across different geographies and green technologies. Offshore Wind in Germany Santander acted as sell-side M&A advisor to Iberdrola on the 49% stake sale of Windanker Offshore Wind Farm, valued at EUR 1.28 billion. This transaction marks another successful offshore wind farm-down for Iberdrola and further strengthens CIB’s position as a leading advisor in the offshore wind sector. Solar and BESS in the United States Santander served as M&A advisor to Morgan Stanley Infrastructure Partners (MSIP) on its strategic investment in Torch Clean Energy to support Torch’s transition from a development platform into an integrated clean-power platform (scale up development, construction and asset management across utility-scale solar and BESS). Santander subsequently supported MSIP and Torch as a Green Loan Coordinator with an underwrite of the debt facilities to support a solar and battery energy storage system (BESS) project in Arizona. #### Mobilising sustainable capital markets Through Debt Capital Markets, Santander supported FIs (Financial Institutions), SSAs (Sovereigns, Supranationals and Agencies) and a broad range of corporates across industries in accessing green, social, sustainable and sustainability-linked funding. In particular, 2025 saw a significant milestone with the first European Green Bonds (EuGB) issued under the European Green Bond Standard –an EU regulation coined as the ‘gold standard’ of green bonds. In Latin Annual report 202535 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | America, Santander maintained its leading position in structuring and executing sustainable financial transactions in the bond market, ranking as top 1 underwriter for sustainable bonds according to Bloomberg league tables. DCM - Green and Sustainability-Linked Santander helped place numerous inaugural European Green Bonds from issuers across the corporate, FIG and SSA space. Santander supported the Italian utility A2A, ASN Bank, ABN Amro, Terna and Comunidad de Madrid in their inaugural EuGB. Santander also continued to actively participate in landmark sustainable debt transactions throughout 2025, including supporting the Republic of Poland’s return to the green bond market, acting as Joint Lead Manager on the sovereign’s EUR 1.25 billion 12-year green tranche (as part of a EUR 3.0 billion dual tranche issuance). Santander also acted as Joint Bookrunner and Sustainability Structuring Agent on one of the few debut sustainability-linked bonds seen this year, supporting Żabka Group – an ecosystem of convenience stores – issue its PLN 1 billion 5- year sustainability-linked bond, with targets related to sustainable products and packaging circularity. Notable sustainable deals that Santander supported in Latin America this year include our Sustainability Structuring Agent, Global Coordinator and Joint Bookrunner roles for Colbún – a Chilean electric utility – on its USD 500 million 10-year green bond; our Joint Sustainable Structuring Agent and Joint Bookrunner role in Empresas CMPC’s USD 600m sustainable hybrid transaction, which won Corporate Sustainable Deal of the Year at the Latin Finance awards; and a Joint Lead Manager role on Corporacion Andina de Fomento’s first sustainable bond, with the development bank placing a EUR 1.5 billion 7-year issuance. #### Supporting sustainable trade, supply chains and working #### capital Santander also provided transactional banking solutions for customers in the form of sustainability-linked transactions and trade finance solutions. Sustainability-Linked Receivables in Chile Santander signed a landmark Sustainability-Linked Receivables Purchase Program in Chile with Patagoniafresh (subsidiary of Empresas Iansa), which was selected as Best ESG Working Capital Initiative at the Working Capital Awards 2025. Wind in Europe Santander and the European Investment Bank (EIB) signed a EUR 500 million counter-guarantee agreement that Santander will use to create a portfolio of bank guarantees of up to EUR 1 billion, expected to unlock EUR 8 billion of investment to support wind energy equipment manufacturing companies in Europe. The agreement is part of the EIB’s EUR 5 billion wind power package to boost Europe’s wind power manufacturing sector and accelerate the energy transition. The operation is backed by InvestEU, the EU programme that aim to mobilize investment of more than EUR 372 billion by 2027. #### Financing renewable #### energy - Overview Grupo Santander has been a leader in renewable energy finance for more than 10 years. In 2025, we were among the top banks in terms of number of transactions and deal value globally, with 100 transactions closed and a 5.58% market share according to Infralogic: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Top 10 renewable energy financing banks in 2025 | | | | | | Rank | Loan Provider | Vol. (EUR million) | No. transactions | Market Share | | 1 | Banco Santander | 12,244 | 100 | 5.58% | | 2 | Bank 1 | 11,018 | 119 | 5.03% | | 3 | Peer 1 | 8,641 | 98 | 3.94% | | 4 | Bank 2 | 8,025 | 90 | 3.66% | | 5 | Peer 2 | 6,852 | 72 | 3.13% | | 6 | Peer 3 | 6,541 | 76 | 2.98% | | 7 | Bank 3 | 6,324 | 80 | 2.81% | | 8 | Bank 4 | 5,765 | 73 | 2.56% | | 9 | Bank 5 | 4,329 | 49 | 1.92% | | 10 | Peer 4 | 3,965 | 50 | 1.76% | Peers are BBVA, BNP Paribas, Citi, Crédit Agricole, HSBC, ING, Itaú, Scotia Bank and UniCredit. Data extracted by 12 January 2026, at the latest. The greenfield renewable energy projects that we financed or advised on in 2025 have a total installed capacity of 16.8 GW. We also helped expand, enhance and sustain renewable energy brownfield projects that have a total installed capacity of 32.1 GW. The greenfield renewable energy projects Santander participated in as financier or advisor in 2025 can power 15.7 million households per year. Santander continues to demonstrate a leading role in the fast- growing battery storage sector, according to Infralogic. #### 2.2.2 Retail and Commercial Banking Retail & Commercial Banking’s sustainable finance activity in 2025 combined a range of financing solutions, advisory services and enabling structures designed to support customers at different stages of their sustainability journey. This approach included dedicated green products, sustainability-linked loans (SLL), which we strive to ensure remain in accordance with local law and regulation in the markets where we operate, advisory partnerships and internal capability building. The initiatives below illustrate how these elements were deployed across our core markets. #### Green and transition financing solutions Santander offered a broad range of green and transition financing products across markets. In Spain, the ICO Mecanismo Recuperación y Resiliencia Verde line provided preferential financing for projects in renewable energy, energy efficiency, electric transport, the circular economy and social housing. In Brazil, sustainable operations expanded significantly, driven by renewable energy, sustainable agriculture and transport; and Financing lines for solar panel installation further supported customer-led energy transition projects. In the UK we also provided funding for a range of renewable energy projects as the first co- located solar and battery energy storage project finance transaction within the Santander Group. Santander Chile marked a Annual report 202536 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | milestone in sustainable finance by finalizing the first Receivables Purchase Program linked to sustainability. #### Sustainability-linked loans Sustainability-linked loans, which we strive to ensure remain in accordance with local law and regulation in the markets where we operate, played a key role in incentivising customers to align their operations with measurable sustainability targets. In Poland, Santander Bank Polska signed an EUR 110 million SLL with Heimstaden, linked to emissions reduction objectives in the residential real estate sector. SLLs also formed a core part of the proposition for large corporates in Spain. #### Advisory, partnerships and customer support Santander complemented financing with advisory services tailored to customer maturity. In Spain, sustainability advisory services were supported by a Sustainability Reporting Guide for SMEs. Different strategic alliances supported asset alignment, grant management and carbon footprint offsetting. In Brazil, advisory and digital platforms such as Fit connected consumers with renewable energy producers. In UK we further strengthened our customer support by forming a strategic partnership, offering CCB customers access to tailored sustainability tools and expert advice; our 'test and learn' initiatives included cashback offers, in-depth retrofit advice, and updated energy performance certificates (EPC) assessments, providing insights into how best to support households in enhancing energy efficiency. In Argentina, we enable through partnerships agricultural producers to access lower environmental-impact inputs and the financing tools needed to implement them. In Portugal, the Santander Foundation in partnership with Universidade Católica, and through the platforms Santander X and Santander Open Academy, delivered training programs in sustainable finance for SMEs and Individuals, with a focus on sustainability reporting. #### Capability building and market infrastructure Santander in Spain embedded sustainability culture across its commercial networks through dedicated training and sustainability ambassadors. In Brazil, the bank played a prominent role in the Eco Invest Programme, mobilising private capital for ecological transition projects. In Colombia, Banco Santander Colombia issued its first sustainable bond, supporting sustainable mobility, financial inclusion and energy transition projects. #### Working with multilateral institutions Santander continues to strengthen its strategic collaboration with multilateral development banks (MDBs) to support our customers transition in Europe and Latin America. Through these agreements, the Group mobilizes financing that enables our customers to undertake green investment, boost energy efficiency and accelerate alignment, while contributing to global environmental objectives. In 2025, we entered into  26 new financing agreements with MDBs. Of these, 16 include a green component, aimed at promoting projects linked to the energy transition and climate change mitigation, for an aggregate amount close to EUR 1,623 million. These agreements will support the construction and sustainable renovation residential and commercial buildings, investment in energy efficiency, the expansion of renewable energy, sustainable agricultural financing, low-emission mobility and transport solutions, and other initiatives. Among the most notable transactions of the year was a cash securitization signed in September in Spain, structured in collaboration with the European Investment Bank (EIB) and the European Investment Fund (EIF). This deal combines financing and guarantee mechanisms to expand the granting of eligible loans to SMEs and midcaps, and support sustainable companies and the construction of energy-efficient buildings. In Brazil, we built on our partnership with the IFC through a Blue Loan aimed at micro and small enterprises that contribute to efficient water use and the protection of water resources, as well as through an AB Loan that expands green financing for sustainable investment under the Eco Invest programme. These investments also cover low-emission mobility, sustainable agriculture, and clean energy. Both transactions significantly increase the availability of sustainable credit in key productive sectors in Brazil. In Chile, Santander agreed on a risk participation facility with the IFC, which will enable financing for green investment in energy efficiency, sustainable infrastructure, biodiversity, transport transition, and other strategic sectors. This significantly expands the volume of green credit available to Chilean companies and supports the sustainable modernization of production. In Uruguay, the IFC approved USD 20 million in financing for Santander Group to support a solar energy project for the production of zero-emission hydrogen, positioning the country as a regional leader in clean energy solutions. #### 2.2.3 Digital Consumer Bank (Consumer) At Santander Digital Consumer Bank, we help our customers in their transition to more sustainable mobility and a low-carbon economy both in auto and non-auto. Auto Our ambition is to continue supporting the transition while maintaining our leadership position. Our leadership position, which has enabled us to support the green transition with EUR 7.3 billion in finance for electric vehicles and reach a market share of 10% in Europe, as well as contributing to the alignment of our auto lending portfolio and 2030 target in Europe. EU regulation has set out the path for the automobile industry to align through two key measures: • Emissions targets for manufacturers in relation to new vehicles sold in a year, with progressive, more restrictive targets for passenger vehicles of 95 gCO2/km in 2020-2024 down to 49.5 gCO2/km in 2030-2034. The penalty for a failure to meet these targets will amount to EUR 95 for each CO2 g/km of excess per vehicle sold. For 2025, the initial target stood at 93.6 gCO₂/km (Worldwide Harmonized Light Vehicles Test Procedure). Most manufacturers in Europe are currently above this threshold, which could lead to penalties across the industry or the need to restrict sales of combustion-engine vehicles, as well as to set commercial policies that encourage the sale of low-emission vehicles or the creation of pools with other brands. Upon acknowledging the potential impact of this regulation on the automotive industry, the European Union extended the compliance period for the 2025 target to 2025–2027, granting manufacturers additional time to implement alignment measures. Annual report 202537 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | • The previous ban on selling internal-combustion engine cars beyond 2035, replaced by a 90% emission-reduction target compared with 2021. This amendment would allow vehicles that incorporate combustion engines to continue being marketed after 2035, provided they meet that target. This change is pending ratification by the European Parliament. According to the European Automobile Manufacturers' Association (ACEA), in 2025, vehicles with some degree of electrification (electric, plug-in hybrid and hybrid vehicles) accounted for 62.2% of the European market, confirming the shift towards cleaner powertrains. Hybrid vehicles led the market with a 34.8% share, followed by electric vehicles at 18.1%, and plug-in hybrids at 9.3%. This suggests only a partial shift towards more sustainable mobility, with perceived barriers to electric vehicles remaining (largely due to battery autonomy and a lack of charging infrastructure). Sales of combustion vehicles (petrol and diesel) continued to decline in 2025, as they did in 2024. After a decline in electric vehicle registrations in 2024, 2025 saw sales bounce back with growth of 30% and an increase in market share of over four percentage points. This is thanks to an increased supply by manufacturers, who need to reduce their emissions. Market data also highlight high dependence on public support measures for the adoption of cleaner solutions. In the absence of a common incentive scheme in Europe, sales increase in markets where incentives remain in place and decline where they are withdrawn. For instance, the discontinuation of incentives in Germany in 2023 led to a drop in electric vehicle sales in 2024. A similar effect occurred in France in 2025, where electric vehicle registrations fell by around 4% year-on-year until the relaunch of the social leasing scheme in July, following its suspension in 2024. Plug-in hybrid vehicles experienced particularly strong growth in 2025, increasing by 32% compared to 2024 and gaining two percentage points of market share. The entry of Chinese manufacturers into Europe — which are subject to lower tariffs for plug-in hybrids than for electric vehicles — has reshaped sales trends. Once considered a transitional technology between combustion engines and fully electric vehicles, plug-in hybrids have now overtaken diesel as the fourth most sold powertrain in Europe. In this context of regulatory change and heterogeneous government action, Santander Consumer Finance (SCF) continued increasing electric vehicle lending, with a market share in Europe of 10% (above the total Auto market share off 8%). This further reflects SCF’s leadership in the electric vehicle market.  In 2025, SCF financed 268,945 vehicles (19% of its total business) worth EUR 7.3 billion (15% of the total auto portfolio). Electric vehicles account for 26% of new car business in terms of number of contracts, outperforming the market. This progress has been helped by signing new financing agreements with electric vehicle manufacturers; and extending partnerships with traditional manufacturers that have set a roadmap and strategic plan to electrify their fleet. SCF has also come up with innovative, holistic financing solutions to aid customers’ energy transition, that comply at all times with applicable local laws and regulations in the markets where we operate, such as home bundles that include charging points and solar panels. We will continue working on the commercial front to establish partnerships with new electric vehicle manufacturers entering the European market, as well as with startups across the entire value chain that demonstrate strong potential to deliver innovative sustainable mobility solutions. Nonetheless, the effectiveness of all these measures in the medium and long term and SCF’s growth in electric vehicle lending will depend on external factors that include regulation; the technological developments needed to reduce production costs and ensure access to key materials to manufacture green vehicles; the infrastructure to expand capacity and boost efficiency; and customer demand and market trends. Non-auto Santander Consumer Finance maintains a strong position in the overall consumer market, with presence at more than 75,000 points of sale across Europe and technological leadership that enables us to continue operating under a model of financing products and projects with positive environmental and social impact. The sustainable financing within the consumer business spans a wide range of sectors that include: • real estate: energy efficiency improvements in homes (solar panels, sustainable heating and cooling systems, energy- efficient equipment); • sustainable mobility: electric bicycles and scooters, charging points and engine adaptations to reduce emissions; and • other activities: linked to the circular economy, including sustainable fashion, electronic device buy-back programmes, and the use of recycled materials for cards (recycled PVC/PLA). In the energy market, consumer behaviour has changed significantly. Demand for residential solar panel installation declined notably following the general stabilization of electricity prices after the 2022–2023 peak. Combined with the vast upfront investment required, this trend reduced consumer interest and the number of specialized installers. However, new financing opportunities have emerged in complementary energy technologies, such as battery and storage systems, particularly in Nordic countries. These solutions help balance electricity grids during periods of low generation and open new environmentally positive financing models that may help renew consumer interest. The electric bicycle market continues to grow, particularly in urban areas, where e-bikes offer a viable alternative to combustion vehicles. Though the initial cost remains a barrier, public incentives and tailored financing programmes are enabling customers to adopt cleaner mobility options. As a notable highlight in 2025, Santander España reaffirmed its commitment to the Hazte ECO programme, which marked its fifth anniversary. Through this initiative, the bank continues to allocate 1% of card purchase amounts to environmental projects managed by the Global Nature Foundation. In 2025, these funds supported wetland restoration in the Valencia region, an area of high ecological value recognized as a Special Protection Area for Birds. The project restored 11.2 hectares and avoided 62 tonnes of CO₂ emissions, while also enhancing water retention capacity, creating Annual report 202538 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | local employment, and promoting nature-based solutions to climate change. #### Engaging customers in the transition Since 2024, we have offered customers located in Belgium and Norway the possibility to subscribe to 'green' term deposits. All of these deposits finance the green assets described above. #### Capital market issuances In 2025, through Santander Consumer Bank Norway, the SCF Group maintained its presence in ESG capital markets with the issuance of a five-year bond amounting to NOK 500 million. #### 2.2.4 Wealth Management & Insurance (Wealth) Most socially responsible investment (SRI) products, registered as Article 8 under the SFDR, managed by Santander Asset Management (SAM), have a sustainable investment objective ranging from 1% to 50%. Investment products registered as Article 9 have a 100% sustainable investment objective (excluding cash and derivatives). The Santander Sostenible Bonos fund, launched in 2019, was a trailblazer in Spain for investing in green bonds to finance clean energy, emissions reduction and other green initiatives. The fund also invests in social, climate change, environmental and other sustainable bonds. As part of our SRI range, we offer thematic products that focus on social objectives (Santander Prosperity), agriculture (Atitlan Atgro), real estate (Real Estate Coliving Opportunities) and climate (Santander GO Global Environmental Solutions and Santander Sostenible Bonos). In private markets, Santander Alternative Investments offers two solutions to address climate change: • Santander Iberia Renewable Energy, a private equity strategy that invests in solar and wind energy projects in Spain. • Santander Innoenergy Climate Fund, a venture capital strategy that invests in climate technology startups that work on renewable energy, smart grids, energy efficiency, storage systems, green energy batteries, mobility and the circular economy. SAM has an advisory mandate for LA Green, a blended finance fund to boost the SME green bond market in Latin America, mobilize large-scale capital, and make a positive contribution to society and the environment. SAM’s SRI funds also include a range of six funds that donate part of their management fee to several NGOs. In 2025, supported projects focused mainly on vulnerable or socially excluded groups, job creation linked to the social and green economy, and development cooperation in such areas as education, youth employability, access to drinking water, and other causes. Our Santander Compromiso Solidario fund won 'Best solidarity fund' at the 2025 Expansión-Allfunds Awards. | | | | --- | --- | | | | | | For more details on Socially responsible investment, see section [5.2 'Responsible investment and social finance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_178)'. | #### 2.2.5 Payments In 2025, 97% of the cards we procured were manufactured using sustainable materials (recycled PVC / PLA). We also continued to develop solutions that promote more sustainable consumption habits. Getnet also drives initiatives aimed at reducing emissions and promoting the circular economy. Among these, the end-to-end point-of-sale (POS) terminal recycling processes —already implemented in Brazil— are particularly noteworthy, as well as the expansion of Tap on Phone solutions, which enable payment acceptance without the need to manufacture or use additional physical devices. Brazil’s POS recycling programme enables the recovery and refurbishment of components for their reintegration into new devices. Additionally, Getnet continues to make progress in replacing traditional consumables with more sustainable alternatives, such as BPA-free paper rolls without plastic tubes, helping reduce plastic use and minimise waste associated with its operations. Santander España offers its customers the possibility of depositing expired or damaged cards at ATMs, initiating a recycling process through which they are transformed into urban-furniture benches. Since the initiative was launched in 2023, Santander has donated 167 benches made from recycled cards to various public institutions in cities such as Valencia, Málaga, Sevilla, Santander and Astorga. In 2025, Santander España delivered these benches to the municipalities of Paiporta, Catarroja and Aldaia, demonstrating its commitment to the recovery of areas affected by the floodings. Annual report 202539 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 2.3 Embedding ESG factors in risk management ESG factors are cross-cutting and may affect different risk types. We manage them by prioritizing environmental and social aspects according to their relevance and materiality for the Group, and always in accordance with local law and regulation. We assess governance factors from a dual perspective, Grupo Santander internal governance and our customers governance evaluation, applying proportionality and materiality criteria. Environmental and social factors comprise the following categories: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | Transition risk (TR) | | | | | | | | | | | | BusinessStore.gif | | Market sentiment Changes in the supply and demand of certain commodities, products and services insofar as climate-related risks and opportunities. | | | | | | | | | | Balanza.gif | | Policy action Laws and regulations mandating carbon pricing mechanisms to reduce greenhouse gas emissions; use of energy sources with lower emissions; energy efficient solutions; and water efficiency measures and more sustainable land use practices. | | | | | | | | | | MobileWifiNFC.gif | | Technology The need to build and innovate to support the transition to an energy efficient financial system with lower CO2 emissions. This can have a significant impact on companies as new technology displaces obsolete systems and disrupts some components of the financial system as we know it. | | | | | | | | | | Physical Risk (PR) | | | | | | | | | | | | Rain.gif | | Acute Intense extreme weather events, such as wildfires, hurricanes or floods. | | | | | | | | | | TreesWater.gif | | Chronic Changes in rainfall patterns as well as, extreme weather variability, average temperature rises, severe heatwaves, drought, and rising sea levels. | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | Nature risk (NR) | | | | | | | | | | | | Buho.gif | | Dependencies Negative effects on economies, financial institutions and financial systems owing to nature degradation, including biodiversity loss and the decline of ecosystem services. | | | | | | | | | | WaterDrop.gif | | Impacts The misalignment of companies’ strategies and operations with regulatory, social and market changes that drive the protection and restoration of ecosystems, particularly those related to land and sediments, water and biodiversity. | | | | | | | | | | Social factors (SF) | | | | | | | | | | | | WorldGlobe.gif | | Negative economic impacts arising from restricted access to key resources and services due to environmental events or conflict with communities, as well as the respect of human rights, labor policies, or health security; affecting on the consumer sentiment and companies’ productivity. | | | | | | | | | | | | | | Annual report 202540 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | At Santander, we assess the impact of environmental factors on each risk type across several time horizons and based on the average maturity of the portfolios analysed. At all times, we strive to remain in accordance with local law and regulation in the markets where we operate. In the table below we set out how we do this, as well as our key achievements in 2025: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | Risk type | Environmental drivers A | Time horizon analysed | Potential impact of environmental factors | | What we’re doing to manage climate and environmental risk | | | | | | | | | | | | | | | | | | | Credit | | Short - medium - long term | → Extreme weather can lead to higher retail and corporate loan default and lower collateral value. It can also lead to lower income, harm agriculture, and increase insurance coverage and premiums. The degradation of nature can affect productivity in the agricultural sector. This may increase loan repayments and early asset disposal due to property damage in 'high risk' locations. → Adverse weather conditions can cause significant financial losses, endanger communities, harm the environment, and affect the value of collateral. → The failure of borrowers to adapt their business models to a low-carbon economy could drive up operational costs, heighten credit risk and, therefore, raise the risk of a drop in income or activity that may increase default or lead to a loss of business value. → Stricter disclosure requirements. → The loss of natural resources (water, fertile soil, etc.) can disrupt economic activity in dependent sectors and reduce borrowers' income and ability to repay. | | → Conducting materiality assessments to identify physical and transition climate change and nature risk in our portfolios. → Monitoring of climate concentration risks by sector and region in the short, medium and long term. → Creating vulnerability heatmaps to assess climate risks in the present day and short, medium and long term via orderly, disorderly and hot house world scenario analyses. → Implementing mitigation measures such as policies, thresholds and insurance to combat risks and their impact. Monitoring risk appetite limits and alerts to manage climate-related sectors. → Conducting scenario analyses and measuring sensitivities to forecast changes in credit ratings, the probability of default (PD) and loss given default (LGD) based on physical and transition risk. → Monitoring portfolios through metrics to control environmental factors in business-as-usual processes. → Assessing environmental and social factors in customer and transaction analysis and embedding them in ratings. | | | | | | | | | | | | | | | | | | | | | | | | | | | Market | | Short term | → High volatility in market factors under stress scenarios. → Changes in market perception leading to wider credit spreads for business in impacted sectors. → Extreme weather conditions could raise concerns about the business plans of companies operating in the impacted sectors and widen their credit spreads. | | → Reviewing climate stress scenarios and the subsidiaries that apply them regularly. → Conducting stress testing using physical and transition risk scenarios. → Analysing trading portfolios for current exposure to climate-sensitive business activities. → Adapting stress testing to best market practices. | | | | | | | | | | | | | | | | | | | | | | | | | | | Liquidity | | Short term | → Market impact on the value of high quality liquid assets in Santander's liquidity buffer. → More frequent extreme weather that stifles economic growth in countries susceptible to climate change, causing sovereign debt to rise and limiting access to capital markets. → Cash outflows from companies trying to boost their reputation in the market or solve problems with climate scenarios. → Extreme weather conditions could cause financial impact on companies operating in the affected sectors impacting the funds deposited in the bank. | | → Conducting qualitative and quantitative climate scenario analyses of impacts on highly liquid assets (HQLAs) and financing of exposed companies. → Analysing higher outflows due to changes in market perception of corporations in climate-sensitive business activities. → Adapting stress testing to best market practices, including new liquidity scenarios to measure their impact. | | | | | | | | | | Annual report 202541 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | Operational | | Short - medium - long term | → Severe climate events can cause damage to our assets, including branches, data centres, headquarters and other owned or rented properties. Impacts on our own or our suppliers’ premises can also affect business continuity. → Climate and environmental factors can also lead to operational risk losses from litigation, claims due to inadequate sales or non-compliance with ESG standards. | | → Conducting self-assessments and operational risk control that include ESG-related risks to weigh up our exposure. → Conducting mandatory operational risk scenario analysis that cover extreme physical and transition risk events. → Including an ESG flag in the operational risk events database to identify events and losses from climate- related and environmental risks. → Including an assessment of climate threats in business continuity scenarios. → Conducting a materiality assessment on climate- related operational risk. → Conducting preliminary analysis on the link between nature and operational risk. → Reviewing local coverage of environmental incidents with Insurance teams. → Updating documentation on embedding of environmental factors in operational risk management. | | | | | | | | | | | | | | | | | | | | | | | | | | | Reputational | | Short - medium - long term | → Customers, investors and other stakeholders could believe that banks aren't doing enough to meet low emissions targets, that they could be acting against their policies, or that their objectives do not meet stakeholders’ expectations. → Stakeholders’ potential perception of inadequate financing and investment in climate and environment- related sectors. → Possible misinterpretation by customers, investors and other stakeholders of institutional disclosures or statements, actions and policies. → Perceived failure to support the climate transition, including insufficient financing of transition-enabling activities. → Risk that our sustainability policies are considered as preventing the provision of financial services to individuals or enterprises based on ideological reasons, or any other reasons deemed improper. | | → Implementing preventative measures to manage reputational risk and disclose risk data so that governance bodies can make informed decisions when assessing or sanctioning sensitive transactions that entail environmental factors. → Monitoring reputational issues and disputes regularly (including environmental matters) via working groups that involve functions such as legal, sustainability, investor relations, public policy, supervisory and regulatory affairs, risk, and others. → Monitoring the implementation of guides to manage and prevent greenwashing, which define the roles and responsibilities of the key processes, and subsequently establish specific training programmes. → Implementing appropriate materiality assessments to measure relevant risk and developing a methodology to quantify it, which remains in compliance at all times with applicable local law, policy, and regulations. → Our policies aim to identify how these risks may affect the creditworthiness of potential borrowers, and therefore pose a credit risk issue. | | | | | | | | | | | | | | | | | | | Strategic | | Short - medium - long term | → Our strategy could be affected if we fail to achieve our environmental and social targets, including those related to the activities we finance and to our own operations. → Regulatory divergence between ESG requirements in the markets where we operate. | | → Challenging ESG targets in strategic planning. → Monitoring the Group’s ESG indicators regularly. → Monitoring ESG indicators as part of our regular competitor analysis. → Identifying emerging risks that include ESG risk factors and analysing their potential impact under stressed scenarios on the Group’s strategic targets to draw up action plans. → Monitoring ESG-related proposals for the corporate product governance forum (CPGF) and investments forum. | | A. Though all climate drivers impact on risk factors, we have only included the key ones in this table. Chronic      Acute      Market sentiment      Policy action Technology    Dependencies      Impacts ![Buho.jpg]() Annual report 202542 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | Key achievements in 2025 | | | | | | | | | | | | | | | | | | | | | | | | | Passport.gif MATERIALITY | | | | → Progress in identifying and assessing nature-related risks across existing risk types. → In credit risk, we embedded nature materiality assessments in the Klima tool to get a combined view of climate and natural capital risks. → We set specific metrics to manage nature-related risks and conducted in-depth analyses on the most material portfolios by complexity (Brazil) and concentration (UK mortgage portfolio). | | | | | | | | | | | | | | | | | | | | | | | | | | | | DocumentLupa.gif PANGEA | | | | → Strategic CIB project to assess corporate customer assessment procedures. → Expanded the scope to the entire portfolio by incorporating screening and escalation criteria linked to the Group’s materiality assessment. | | | | | | | | | | | | | | | | | | | | | | | | | | | | ClipboardCheck.gif SCENARIO ANALYSES | | | | → Embedded internal climate models in risk management that enable us to enhance how we quantify the financial impact of transition and physical risk on credit risk variables (PD and LGD). → Update of heatmaps in the credit materiality assessment across different time horizons, calculated using scenario analysis techniques based on our portfolio, models and Network for Greening the Financial System (NGFS) scenarios. | | | | | | | | | | | | | | | | | | | | | | | | | | | | Localizacion.gif PHYSICAL RISK | | | | → Increased geographic granularity in physical risk analysis, down to postcode level in Europe or equivalent in other countries. → Expanded the number of markets we assess. | | | | | | | | | | 2.3.1 Resilience of our business model to #### climate change Managing the risks that stem from environmental and social factors plays a critical role in strengthening the resilience of our business model to climate change. We embed these factors in all stages of the risk management cycle, in accordance with local law and regulation, by assessing both our own facilities and our interactions with customers. Moreover, we include the risks derived from these factors in our policies, procedures, tools, metrics, mitigating actions, reporting, governance and culture. And we do this using a forward-looking approach that covers the medium and long term through the use of climate scenarios across different time horizons. The Risk function works to strengthen our management framework by: • conducting regular emerging risk assessments to spot key threats to our strategic plan under theoretical stress scenarios with low likelihood of occurrence; • assessing and challenging the strategic plan to spot potential threats that may stop the Group from achieving its objectives; and • using internal ESG risk management policies that enable the identification, assessment, mitigation, monitoring and reporting of material risks arising from environmental, social and governance factors. Our risk governance bodies regularly review the monitoring of material topics related to the ESG risk factors identified through these processes, while at all times complying with applicable local laws and regulations in the markets where we operate. Santander understands how environmental and social factors affect its business environment in the short, medium and long term. The strategic response to the changes and uncertainties arising from these factors influences the resilience of the business model over time. Therefore, climate, environmental and social changes in the macroeconomic, regulatory and competitive environment are explicitly considered, and integrated into strategic processes and escalated to management bodies. 5 Risk management follows a global approach while aligning to local regulatory and legal requirements. 6 European Banking Authority. 7 European Bank for Reconstruction and Development. Annual report 202543 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 2.3.2 Risk management cycle 5 At Grupo Santander, we manage the environmental and social factors of our global portfolio by considering all risk types and prioritizing the most material ones. Below we describe how we embed these factors in the risk management cycle. #### Risk management cycle ![CicloRiesgosENG.jpg]() 1. Identification We conduct regular risk identification exercises to assess events that could threaten the Group's strategic plan. These exercises consider environmental risk factors beyond climate, such as nature and biodiversity, as well as social factors. Risk identification enables us to understand the internal and external threats that the environment and climate change pose to our business model, profitability, solvency and strategy. We use tools such as the internal risk taxonomy, heatmaps and materiality assessments, which provide the basis for identifying and classifying material environmental and social risks across our portfolios. In 2025, we determined the social factors that will apply to Grupo Santander’s loan portfolio and will embed them in our materiality assessment in 2026, including an assessment of social factors that may have a potential impact based on regulatory requirements, international standards and market best practices (EBA 6, EBRD 7, World Bank, and others). This will be done in a way that at all times complies with local law and takes into account local policy where appropriate. 2. Planning We include E&S risk management in strategic planning, which spans several time horizons in addition to ad-hoc analysis at each moment: • One year for the short term (this is the standard time horizon for the short term in the Group). • One to five years for the medium term (financial planning). • Over five years for the long term (strategic plan). Specifically, we challenge the strategic plan to identify potential threats that could prevent us from achieving our objectives. 3. Assessment At Grupo Santander, we assess how ESG factors may increase risk over the short, medium and long term. Our assessment of the ESG factors that could be material due to their potential impact on the Group’s risk profile considers these aspects: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | 1 | Review of E&S drivers | | | | We use a variety of references (TCFDA, TNFD B, UNEP FI, ENCORE C, SBTN D, NGFS E) and analytical toolsF to identify and monitor environmental and social risk factors across risk types. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2 | Analysis of transmission channels | | | | We analyse how the factors identified in the previous stage could impact on the risk types included in our risk management framework. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 3 | Assessment of potential impact on the main risks | | | | We analyse the potential impacts should the risk factors previously identified through the transmission channels materialize, based on qualitative and/or quantitative approaches. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4 | Consolidated materiality | | | | We aggregate impact results by risk type in a consolidated materiality using a five-point RAGG scale across short, medium and long-term horizons. | | | | | | | | | | | A. Task Force on Climate-related Financial Disclosures. B. Taskforce on Nature-related Financial Disclosures. C. Exploring Natural Capital Opportunities, Risks and Exposure (a materiality database of dependencies between production processes and ecosystem services). D. Science Based Targets Network. E. Network for Greening the Financial System. F. Heatmaps, sectoral and environmental materiality, historical information, scenarios and customer assessments. G. Red, amber and green. (RAG) 8 The need to assess a longer time period for the short and medium term is intended to adequately reflect the impact of physical and transition risks. Additionally, scenarios have been considered to calculate the different time horizons. Annual report 202544 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | The following table shows the consolidated results of the materiality assessment by risk type and time horizon 8 as of year-end 2025: | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | Consolidated materiality assessment | | | | | | | | | | | | | | Transition Risk | | | | | | Physical Risk | | | | | | ST | | | | | | ST | | | | | | | Climate / Nature | | | MT | LT | | Climate / Nature | | MT | | LT | | Credit riskA | | | | | | | | | | | | | CIB | l | l | | l | l | | l | l | l | | l | | Corporate & SME | l | l | | l | l | | l | l | l | | l | | Individuals | l | l | | l | l | | l | l | l | | l | | Auto Consumer | l | l | | l | l | | l | l | l | | l | | Operational riskB | l | | | l | l | | l | | l | | l | | Market risk | l | | | l | l | | l | | l | | l | | Liquidity risk | l | | | l | l | | l | | l | | l | | Reputational risk | l | | | l | l | | l | | l | | l | | l Low  l Moderately low  l Medium  l High  l Very high | | | | | | | | | | | | | Short term (ST): <2030 | Medium term (MT): 2030-2040 | Long term (LT): >2040-2050. A. Assessment as of September 2025. B. Assessment as of November 2025. | | | | | | | | | | | | In 2025, we continued to enhance our materiality assessment by embedding regulatory requirements, industry best practices and greater harmonization across risk factors, particularly with regard to information sources, thresholds and scenarios. Moreover, we embedded nature-related materiality alongside climate-related materiality. The table above shows the consolidated results of the materiality assessments by risk factor. These assessments use specific tools and methodologies to assess the potential impact of climate- and natural capital-related factors. We use this risk factor materiality assessment to underpin climate risk identification and assessment as part of our double materiality procedure. | | | | --- | --- | | | | | | For more details, see section [1.2. 'Materiality Assessment'.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_67) | The materiality assessment's rationale for each risk type is as follows: → #### 3.1 Credit risk We conduct regular materiality assessments to identify, assess and monitor the Group’s environmental credit risks by sector and geography. This assessment includes both a current-state review and a forward-looking analysis using scenario analysis techniques for climate risks. Internally-developed scenario analysis and climate stress testing models enable us to calculate impacts and monitor climate sensitivity across key credit risk metrics, such as probability of default (PD), across different time horizons, scenarios and with granular detail by geography and sector. We complement the materiality assessment with these initiatives: – Customer assessment for the corporate portfolios that analyse the key aspects of transition, physical, social and environmental risk. Our subsidiaries conduct this assessment locally. – Sector focus, through specific analyses of key sectors such as real estate or consumer auto financing. – Geographical assessment of physical risk, which includes analyses of acute and chronic physical risks based on external expert models and considering different scenarios and time horizons. The materiality assessment plays a key role in setting our strategy, risk appetite and other resilience exercises, such as ICAAP (Internal Capital Adequacy Assessment Process). #### Klima | | | --- | | | | | Klima is our internal management tool for identifying, assessing and monitoring climate and environmental risks at both Group and subsidiary level. It collects and processes the information required for materiality assessments, including risk exposures and vulnerabilities, with a granular breakdown by sector, subsector, segment and geography. The tool supports specific portfolio analyses carried out for physical risk, consumer auto and real estate, among others, and enables the monitoring of sensitivities through scenario analysis. We continue to develop new functionalities to enhance credit risk management, in line with market best practices. | | | --- | | | | | 3.1.1 Climate and nature materiality Climate change and the loss of nature and biodiversity are inextricably linked. Climate change represents one of the main drivers of nature loss, affecting ecosystem resilience and limiting their capacity to regulate the climate and act as carbon sinks. That’s why we’ve embedded nature-related analysis in our 9 Sectors such as Power - Electricity (conventional) and Mining & Metals do not distinguish activities that do contribute to the transition, due to the NACE classification typology on which the environmental taxonomy is based. 10 It represents a consolidated view. Implications and management in each market are always informed and in accordance with local law and regulation. Annual report 202545 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | materiality assessment, using various tools as references (ENCORE and SBTN). This approach has enabled us to identify the sectors most exposed to transition risk (impacts) and physical risk (dependencies) across our portfolio. The results of our 2025 credit risk materiality assessment by sector are in the table below. For the first time, the assessment includes nature-related materiality, as well as the wholesale and retail trade sector within the risk taxonomy, which shows a moderate risk assessment. Overall, climate-related materiality follows a similar trend to that observed in 2024, as the Group’s exposure remains largely concentrated in sectors that are not highly vulnerable to climate transition risk. Although the highest risks 9 are concentrated in CIB, they do not represent a significant weight of the Group’s overall exposure. Our portfolios continue to show low vulnerability to physical risk, as they are predominantly located in areas with lower risk levels. The increase observed in the agriculture sector under the forward-looking view reflects improvements in data granularity and updates to the models and scenarios we use for these forecasts. With respect to nature-related materiality, we did not identify high risk levels. However, the assessment shows medium risks, with agriculture and water and waste management standing out as the most affected sectors in terms of both dependencies and impacts. Materiality assessment – Environmental risk portfolio analysis 10 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | September 2025 (pre-mitigation) - EUR billion | | | Nature Risks | | Climate Risks | | Climate Risks | | | | | | | Transition | | | | Physical | | | | CIBA | OthersC | TR | PR | TR | PR | Orderly | | Disorderly | | HHW | | | Current | Current | Current | Current | 2040 | 2050 | 2040 | 2050 | 2040 | 2050 | | Oil & Gas | 21 | 1 | | | | | | | | | | | | Mining & Metals | 12 | 7 | | | | | | | | | | | | Power - Electricity (Conventional) | 28 | 2 | | | | | | | | | | | | Power - Electricity (Renewables) | 15 | 0 | | | | | | | | | | | | Wholesale and retail trade | 17 | 40 | | | | | | | | | | | | Transport | 27 | 12 | | | | | | | | | | | | Auto ConsumerB | 0 | 159 | | | | | | | | | | | | Agriculture | 2 | 8 | | | | | | | | | | | | Manufacturing | 44 | 24 | | | | | | | | | | | | Water and Waste | 3 | 1 | | | | | | | | | | | | Construction | 16 | 16 | | | | | | | | | | | | Real Estate | 6 | 374 | | | | | | | | | | | | Total Environmental Sectors | 191 | 645 | | | | | | | | | | | | Others Sectors D | 58 | 176 | | | | | | | | | | | | Total | 249 | 821 | | | | | | | | | | | | Risk level: ¢ Very high    ¢ High    ¢ Medium    ¢ Moderately low    ¢ Low | | | | | | | | | | | | | | TR: transition risk (effects of the transition to a low-carbon economy, including changes in regulation, technology and market trends). PR: physical risk (it comprises acute and chronic). A. CIB: REC (on and off-balance sheet lending + guarantees + derivatives PFE: Potential Future Exposure). B. Auto Consumer: Auto SCF HQ + Auto US (Santander Bank N.A. + Santander Consumer USA). C. Other segments (drawn amount): Individuals + Private Banking + SCF HQ + Auto US and Corporates & SMEs. D. Other Sectors: CIB, Corporate & SMEs NACEs outside of risk taxonomy perimeter + cards and Other Consumer (Individuals and SCF) + Private Banking products (excl. mortgages). Exposure 0 represents exposure below EUR 500 million. | | | | | | | | | | | | | As the table above shows, we convey the assessment results through heatmaps that illustrate the vulnerability to environmental risks. These maps reflect the current view and we complement them with internal models that apply to credit portfolios to perform forward-looking analyses over the medium and long term. These analyses consider impacts based on probability, magnitude and duration. Though we present Group level results with a breakdown by sector, our assessment is considering more granular level of detail within our portfolios (NACE 4 level). This analysis is intended to inform risk identification and portfolio monitoring. 11 According to Note 54 'Risk Management': the Group does not believe that additional environmental or climate change risk had a substantial impact on its equity, financial situation and results in 2025. 12 NGFS scenarios provide a common and up-to-date reference point for understanding the evolution of climate risks and trends in climate policy and technologies over different time horizons. That's why we use them as a basis for showing impacts on our portfolios by calculating a range of outcomes. Annual report 202546 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 3.1.2 Internal climate models We use scenario analysis techniques to assess the potential impact of climate-related risks on the loan portfolio under different climate scenarios and time horizons. For this purpose, Santander has developed an internal climate risk model known as GEA, which enables us to quantify the financial impact 11 of transition and physical risks, monitored through changes in probability of default (PD). The GEA model comprises these processes: ![ClimateInternalModelENG.jpg]() The model forecasts customers’ costs, revenues and profits by incorporating the impact of changes in the price of carbon and in demand patterns associated with transition risks, as well as productivity losses and asset impairment arising from physical risk. These are its main features: A. Scenario Set: Our Research function adapts scenarios based on NGFS 12 scenarios. The climate scenarios we use (Orderly, Disorderly, Hot House World and Neutral) include country- and sector-level detail and provide a comprehensive view of key macroeconomic and environmental dynamics across the regions where the Group operates. These scenarios illustrate different pathways for the global transition towards a low-carbon economy and their implications in terms of financial impact on our corporate customers, primarily through two variables: Gross Value Added and the price of carbon. B. Physical risk impact: This considers the financial impact of acute and chronic risks, as well as long-term changes in weather patterns to give us a wide range of events that we assess at regional level. For these financial impacts, we use NGFS scenarios and data from an expert insurance company and considering different scenarios and time horizons. C. Transition risk impact: This uncovers changes in such factors as climate policies, technology, and investor and consumer sentiment that can affect demand. These factors affect customers individually. D. Counterparty projections: These show changes in the financial ratios included in the credit risk rating models and are based on forecasted revenues and costs under the different scenarios, including physical and transition risk impacts. The projected ratings give us the associated PD to the counterparty. Annual report 202547 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | NGFS scenarios | | | | RCP climate scenarios | | | | | Physical and transition risks | | | | Physical risk | | | | | | | | | | | | Orderly, assumes ambitious climate policies implemented early, which gradually become stricter. Therefore, both physical and transition risks are relatively moderate. | | | | RCP 2.6: stringent mitigation scenario with the aim to keep global warming below 2ºC. This is associated with orderly scenarios. | | | | Disorderly, climate policies are not introduced until 2030 and may differ between countries and sectors. | | | | RCP 4.5: intermediate scenario where emissions reach their peak in 2040 and then decrease. This is associated with disorderly scenarios. | | | | Hot house world (current policies), it is considering that some climate policies are implemented in some jurisdictions, but global efforts are insufficient to stop significant global warming. Serious physical risks and irreversible changes. | | | | RCP 8.5: very high GHG emissions (keep increasing throughout the whole century). This is associated with Hot house world scenarios. | | | | Neutral, a theoretical scenario constructed under the assumption that there are no transition or physical risk impacts. | | | | | | 3.1.3. Customer assessment To strengthen our environmental risk factor management, we carry out qualitative assessments that we embed in corporate customer assessments within the CIB and Commercial Banking portfolios. Local teams perform these assessments and analyse each customer’s environmental and social situation, in accordance with local law and regulation. We include the results of these assessments in credit decisions as part of the annual customer rating review. Subsidiaries may also include them in materiality assessments where they consider the impact to be significant. Moreover, Santander has developed tools to customize and store ESG questionnaires for customers. These tools support credit risk management. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | CIB - PANGEA Project | | | | | | | | | | | In 2025, a strategic project was developed to review the corporate client assessment procedure, with the following objectives: → expand the scope of the assessment to the entire portfolio by adding screening and escalation criteria linked to the Group’s materiality assessment; → draw up approaches to due diligence and monitoring that are proportionate to each customer’s risk level; → introduce new data-driven risk identification tools, including artificial intelligence and controversy screening; → embed E&S factors in credit rating and in credit limit approval; → strengthen infrastructure, systems, processes and enhance reporting capabilities; and → optimise roles and responsibilities across the three lines of defence, as well as within global and local environmental, social and climate change (ESCC) teams. The project will enter into force gradually in 2026. It will remain in accordance with local law and regulation. | | | | | | | | | | 3.1.4. Specific portfolio analyses We complement portfolio-level materiality assessments with specific analyses of key portfolios: Consumer Auto | | | --- | | | | | Given our exposure to this segment, and considering its specific characteristics and regulations, a more granular analysis is carried out considering key risk factors and drivers including residual value risk, portfolio maturity, changes in market sentiment, technological developments, regulation, and variables such as the type of product, the type of engine (internal combustion, hybrid or electric vehicle), among others. | | | --- | | | | | #### Physical risk | | | --- | | | | | To assess physical risk by geographical location, we work with an insurance provider, which enables us to assess physical risks (acute and chronic). We analyse the markets where we operate, with a breakdown by postcode for Europe and municipality for the rest of the Group’s subsidiaries, and cover all economic activities in our Risk Taxonomy, as well as the business lines (such as mortgages and automobiles). Annual report 202548 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Our Klima tool includes a dedicated physical risk module to cover the markets where we operate and other countries to assess our customers’ production centres and facilities. It includes forward- looking that enables us to actively manage these risks through monitoring, metrics and mitigation measures. We assess each region to measure the associated physical risks by rating them on our five-point scale (low to very high). To assess the frequency and intensity of natural risks, we use Representative Concentration Pathways (RCP) scenarios across different time horizons (present day, 2030, 2040, 2050 and 2100). At Group level, our analysis takes a conservative approach, using the RCP 4.5 scenario and time horizons that are consistent with portfolio maturities, such as 2030 for economic activity sectors and 2050 for collateral. The results are considered in the credit materiality assessment by region and show that, while certain sectors are more exposed to physical risks, such as agriculture, conventional energy and mining, their concentration in the Group is very low (1-2%). And by contrast one of the lowest impact comes from our collateralized portfolios with very high concentration of exposure in the Group. | | | --- | | | | | #### Real estate | | | --- | | | | | Our real estate portfolio accounts for a significant portion of the Group’s balance sheet. That’s why we have developed a dedicated module within the Klima tool that provides a detailed view of associated transition and physical risks. Regarding transition risk, we have enhanced both the quality and quantity of data related to energy performance certificates (EPC) across the portfolio and boosted data capture. Where actual data is not available, we use estimates based on internal models or external providers. This chart below shows the EPC coverage of our balance sheet and distribution of actual and estimated EPC labels based on the standards and regulation in each market where this information exists. Residential and commercial real estate EPC data (December 2025) | | | --- | | | | | ![13889]() | | | --- | | | | Distribution of exposure to residential and commercial real estate portfolios by EPC (December 2025) | | Distribution based on Portfolio with EPC information. (RAG according EPC Standards) | ![InmobiliarioENG.jpg]() Regarding physical risk, we analyse acute and chronic risks across different scenarios and time horizons, using postcode- level or equivalent geographic granularity. Considering a forward-looking view across different time horizons, with no material high risk. | | | --- | | | | | → #### 3.2 Operational risk We assess the potential impact of physical risk through a combination of specific location-based risk scores, data on the bank’s own facilities and insurance, and internal scenario analysis for certain physical risks. We assess the potential impact of transition risk through operational risk tools and external ESG- related events. We assess physical risk as low in the short term and moderately low in the medium and long term, mainly due to exposure to more frequent and severe weather events in the regions where we operate. We consider transition risk exposure as low across all time horizons since we have no evidence of a medium- or long-term increase in legal and compliance risk upon adapting to new environmental regulations. We continue to monitor these factors to be able to spot a potential rise in the level of risk. In 2025, we added a qualitative operational materiality assessment on nature-related risks. As part of this, we assess the potential impact of physical risk by combining natural capital dependency scores by location with the location of the bank's main premises. We assess the potential impact of transition risk through nature impact assessment tools, which we supplement with a review of external events. This assessment found that the materiality of nature-related operational risks is low. The predominantly urban location and financial activity of our buildings and offices back this conclusion, not to mention the current regulatory and penalty framework, which does not foresee a significant increase in penalties or legal action in the short term. → #### 3.3 Market risk To assess the potential impact of climate factors, we conduct regular analysis of our trading portfolios to identify the materiality of positions with potential exposure to market risk climate factors. Annual report 202549 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | We then compare the findings from climate stress scenarios (both physical and transition risk) to those from internal, stressed and budget scenarios. This assessment concludes that the materiality is low or moderately low depending on the time horizon, due to the low exposure to climate sensitive sectors both in the bond and equity portfolios. In 2025, we introduced dedicated monitoring of market risk within the banking book by analysing the impact of climate stress scenarios on positions measured at fair value, primarily ALCO portfolios (Asset Liability Committee). We also embedded nature- specific scenarios. Given the time horizon over which these impacts materialize, we assessed them as low materiality for market risk purposes. → #### 3.4 Liquidity risk To assess the potential impact of climate factors, we compare the findings of climate stress scenarios with liquidity stress scenarios. We have a suite of physical and transition risk scenarios (disorderly transition scenarios, extreme climate events, historical events, etc.) whose impacts on liquidity are well below current internal and regulatory stresses due to their limited effect on high quality liquid assets (HQLA) and stable retail deposits. In 2025, we embedded new nature-related scenarios. Given the time horizon over which liquidity impacts would materialize, we assessed these scenarios as low materiality. → #### 3.5 Reputational risk We conduct specific materiality assessments on the potential reputational impact of climate and environmental factors in the short, medium and long term under various scenarios. As with our strategy, policies and management models, we consider the environment holistically. Thus, our materiality assessment includes identifying and assessing climate change and other environmental impacts. Certain economic agents whose activities are subject to regulations aimed at promoting sustainable development, or which are directly affected by the objectives set out in international agreements or institutions on climate change, may see their activities or their ability to generate income impacted, either directly or indirectly. This should be taken into account when assessing the associated credit risk. Indirect impact refers, in particular, to public perception that a company is carrying out activities that are inconsistent with applicable regulations, international objectives, or generally accepted trends. In 2025, we updated our reputational risk materiality assessment approach based on official reports and studies from renowned organizations. Moreover, we continue working on further homogenization and synergy between risks in terms of information sources, thresholds and scenarios, among others. 4. Monitoring In addition to the processes described above, we continuous monitor ESG factors: • At Grupo Santander, we constantly monitor the risk profile and our compliance with risk appetite limits through control functions that report to the board. In 2025, we updated and harmonized risk appetite metrics (limits and alerts) in line with the Group’s strategy. We also strengthened our risk appetite statement by embedding new specific metrics for other material sectors. • In 2025, we worked on drawing up and designing a Group-level ESG dashboard to monitor the main ESG risks across our portfolio to strengthen control through metrics (particularly concentration metrics). • We are in permanent contact with our customers to monitor their transition plans and support implementation. • We continue to embed ESG risk factors in the credit granting and monitoring process through our operating model (The Climate Race) to comply with EBA guidelines across the Group’s subsidiaries and adapt them at local level. We align this process at all time with applicable laws and regulations in the markets we operate. • Our Sustainability Regulatory Radar enables us to monitor regulatory and other changes in this area and to assess the potential efforts and financial impacts associated with their implementation. • The Risk and Compliance functions monitor ESG factors in corporate development transactions presented to the investment forum, acting under delegated authority from the Board's Executive Committee, as well as in new products and services submitted to the Corporate Product Governance Forum. 5. Mitigation Grupo Santander uses several levers to mitigate the risks associated with environmental and social factors, ensuring compliance at all times with local laws and regulations: • Policies, frameworks and internal procedures that embed environmental and social factors in risk management and play a key role in mitigation and adaptation. Our E&S risk management policy sets out the standards for investing in entities and providing financial products and services to customers in sectors with E&S risks identified as material. | | | | --- | --- | | | | | | For more details, see section [3.2.3 'Management of](#i6ecb2a0d58d04b53bfadfa2a833efaa7_181) [environmental and social aspects](#i6ecb2a0d58d04b53bfadfa2a833efaa7_181)'. | • Use of the internal taxonomy (SFICS), which enables us to monitor our sustainable activity, support product development, and mitigate greenwashing. • We consider ESG aspects in customer assessments to determine whether they have an impact on credit quality. Against this backdrop, we have launched several projects: (i) sector guidelines to identify the main transition and physical risks that each subsector faces and how to identify them in customer interaction; (ii) ESG assessments with varying depth depending on risk level, including enhanced contextual assessments for more material cases and automated assessments for others. We are rolling out this assessment model across commercial banking portfolios in several subsidiaries; (iii) questionnaires and assessments library (EQAL), through which we continue to enhance ESG questionnaire management capabilities. EQAL enables us to embed ESG customer assessments in risk management workflows and to collect historical ESG data. These data may support aggregated analysis under varying criteria and serve multiple risk management purposes, such as metric setting Annual report 202550 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | or model impacts. EQAL operates in Argentina, Portugal and Spain, and will become available in CIB and Brazil in the near future. • Customer engagement for sectors identified as the most material through environmental materiality assessments. This enables us to support customers in their transition to a more sustainable economy, offer them tailor-made solutions, and create business opportunities. Moreover, obtaining and verifying data directly from customers also helps mitigate ESG risk factors. • Credit committees, which embed environmental, social and climate change factors in transaction reviews. • CIB customer ratings, including qualitative environmental, social and climate change assessments for material sectors. • Monitoring and management of real estate collateral, which considers environmental factors that may affect collateral from transaction inception and throughout its life cycle, such as energy performance certificates and physical and nature-related risks. Where we identify material risk levels, we apply management, adaptation and/or mitigation measures to align exposures with acceptable risk levels. • Appropriate documents to support the assessment of environmental factors in transaction management, customer assessments and real estate collateral valuation according to local regulatory frameworks. • Mandatory insurance coverage in which the bank appears as beneficiary and which includes coverage for material risks, including those arising from environmental events. • CIB due diligence to assess and manage the environmental and social factors of corporate customers and embed them in credit approval.  We assess customers in applicable sectors through a questionnaire that the first line of defence completes before a team of analysts reviews it to perform an overall environmental risk factor assessment. The findings of these assessments are escalated to the bank’s risk approval committees and considered in decision-making. The risk assessment also forms part of decision-making, with particular focus on greenwashing. Due diligence consists of assessing the CIB's project finance transactions according to the Equator Principles. • A multidisciplinary working group (Legal, Sustainability, Risk and Compliance) that assesses controversies, including ESG factors. | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ESG classification meetings | | | | | | | | | | | | | | | | | To mitigate greenwashing, we assigned local and global marketing committees and ESG classification meetings to act as the governing bodies responsible for the assessment, classification and monitoring of ESG-focused products and transactions. This governance model operates fully across all global businesses and Group subsidiaries. The corporate centre oversees these bodies through quarterly follow-ups and annual assessments. | | | | | Their aim is to check that these bodies rely on expert input to interpret and demonstrate the applicable criteria, in accordance with local law and regulation. They also draw on centres of excellence and involve Business, Risk and Sustainability teams. Moreover, we regularly update the sustainable classification model and ensure that sustainable products remain aligned with it. | | | | | | | | | | | 6. Reporting Transparent and regular disclosure of information (both internally to senior management and externally to stakeholders) supports the management and control of environmental and social factors. It also ensures compliance with regulatory requirements and supervisory expectations. We work to ensure that our information remains complete and consistent and accurately reflects Santander’s sustainability strategy and management, while mitigating potential risks. Our main reports include key information on how we manage environmental and social factors. Alongside financial results, the annual report sets out our sustainability policies and actions, as well as progress against E&S indicators. Moreover, the ICAAP exercise embeds the assessment of ESG risks — including physical and transition risks related to climate change — and analyses their potential impact on solvency and strategic planning. The Pillar 3 disclosure report further strengthens transparency by publishing prudential information related to these factors. It shows our exposure to environmental and social risks and explains how we embed them in internal risk management frameworks. 13 Monthly metric. Banco Santander has zero tolerance for very high impact events, including ESG-related ones. Circumstances that could lead to a ‘very high’ impact event are: i) events that trigger silver or gold crisis management committees; ii) regulatory requirements that uncover significant weaknesses or shortcomings: very high financial penalties (above EUR 10 million), permanent cessation of economic activity, capital aggregation, loss of banking licence, restrictions on dividend distribution, etc.; iii) events with a very high impact on public opinion: with widespread and sustained negative media and TV coverage in a single market and/or in other markets for over one week or very high impact on social media; and iv) suspension of shares trading or a drop in share price of over 5% in one day on the back of the issue in question. 14 The main potential environmental impact of our offices stems from their maintenance and how we manage the waste we generate. So far, we have not deemed it necessary to adopt biodiversity mitigation measures in our operations. Nonetheless, on certain occasions we have considered corrective or mitigation measures as part of our customer lending due diligence and in application of our E&S risk management policy. Annual report 202551 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 2.3.3 Reputational risk This section outlines how we manage this IRO, which is considered a climate-related transition risk: | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | R | Reputational risk based on the perception of the Bank's progress with Group climate-related policies and objectives in certain jurisdictions and that could lead to other type of risk implications. | | | | | | | Banco Santander manages reputational risk in line with the Reputational Risk Model and the associated ESG policies and requirements, which set out the key principles for identifying, managing and controlling this risk. Reputational risk may arise from multiple sources and, in many cases, is derived from other risks, such as strategic, liquidity, or credit risk. Reputational factors that may be associated with clients are assessed insofar as they may lead to financial stress and in accordance with applicable laws and regulations. To assess the performance and effectiveness of these actions, we define specific metrics 13 that help determine and manage appropriate actions to prevent or mitigate reputational impacts related to climate and environmental risk factors, as shown in the table in section [2.3](#i6ecb2a0d58d04b53bfadfa2a833efaa7_109) ['Embedding ESG factors in risk management'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_109). #### 2.3.4 Potential financial effects To cover CSRD requirements related to financial effects (E1-9), we include information on the exposure subject to material physical risks in the Pillar 3 ESG report. We use the information disclosed in this report according to the 'Implementing Technical Standards on prudential disclosures on ESG risks' defined by the EBA. This report covers information of the banking book portfolio, including loans and advances, debt securities and equity instruments and, unlike other non-accounting-based reports, enables us to reconcile accounting of the total figures presented. Physical risk: Below we report on our exposures that are sensitive to impacts from material acute and chronic physical risks (collateralized and non-collateralized). To assess the physical risk of our portfolio, we use an external provider's methodology. Based on the information it provides, we make these assumptions to determine the Group’s sensitive exposures to the impact of physical risk: i. We apply a conservative criterion that the provider recommends, considering that an activity within a given geographic area is sensitive to physical risk impacts when at least one hazard assessed by the external provider scores 4 or higher on the scale. ii. We use the RCP 4.5 scenario, which is between a scenario that considers that the Paris Agreement objectives as met (RCP 2.6) and a more specific stress exercise scenario (RCP 8.5). iii. We consider time horizons that are consistent with the average maturities of our portfolios, under a conservative approach. For non-collateralized exposures, we apply a 2030 horizon. For collateralized portfolios, we apply a 2050 horizon. iv. For location-based assessment, we look at collateral locations as well as the headquarters of borrowers for non-collateralized loans — at postcode level or equivalent across all markets. According to the assumptions described, our exposure to material physical risks was EUR 39 billion as at December 2025, which accounts less than a 2% over Group’s total assets. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Exposure subject to physical risk | | | | | | EUR bn | Chronic | Acute | Both | Total | | Total | 23 | 13 | 3 | 39 | The ESG Pillar 3 report discloses physical risk information at regional level (Europe, South America and North America) and identifies a higher concentration of material physical risks in Europe (58%). #### 2.3.5 Our approach to nature and biodiversity While our materiality assessment considers 'Biodiversity and ecosystems' an informative topic, we continue to oversee our operations and impact on biodiversity and nature in view of our climate objectives. Given the Group’s financial activity and the location of its network of buildings and offices (mainly in urban areas), we have not initially identified 14 sites located in or near biodiversity-sensitive areas. We carry out a double materiality assessment to understand direct impacts and dependencies on nature and biodiversity associated with our customers’ business activities and based on the risk materiality exercise. This assessment looks at both a company’s impact on the environment and society and sustainability matters that affect our financial performance. We used two tools: • ENCORE: A materiality database of dependencies (physical risks) between production processes and ecosystem services. • UNEP FI Impact Analysis Tool: This tool provides an in-built impact (transition risks) mapping that, combined with our internal data and context, enables us to identify the most significant impact areas of the portfolio. Annual report 202552 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Based on the above-mentioned approach, we use a heatmap to aggregate nature-related dependencies and show the level of threat of potential events that may affect our corporate portfolio at Group level. This exercise also meets disclosure requirements under the European Sustainability Reporting Standards: ESRS E2 (pollution), ESRS E3 (water and marine resources), ESRS E4 (biodiversity and ecosystems), and ESRS E5 (resource use and circular economy), in relation to ESRS 2 IRO-1. The assessment concluded that no nature-related topic or subtopic proves material at Group level. We regularly monitor our nature materiality assessment. In 2025, we made headway with embedding nature-related risks in portfolio management, as described in the materiality assessment. We also strengthened internal processes to identify and assess impacts on ecosystems and natural resources in some of the most relevant markets, as outlined below: • Last year, Santander Brasil took part in a pilot led by the Brazilian Business Council for Sustainable Development under the Action for Nature initiative. The initiative aims to promote the implementation of the TNFD framework and strengthen corporate disclosure on nature-related risks, dependencies and impacts. In 2025, Santander Brasil joined the second phase of the initiative — the Finance and Nature Community of Practice —, which focuses on embedding nature in portfolio and supply chain management. Current efforts centre on technical discussions, the exchange of best practices among financial institutions, and the development of tools to assess biodiversity-related risks and opportunities, reinforcing Santander’s commitment to the global sustainable finance agenda and natural capital valuation. • Santander UK has begun assessing nature-related risks and opportunities within its Retail Banking business. Initial assessments show low exposure, as the portfolio does not concentrate on high-risk sectors or geographies. In 2025, the assessment focused on the mortgage portfolio. Though mortgages typically do not present significant direct nature- related risks, they represent a material portion of the balance sheet. The assessment found that nature-related risks may exacerbate existing climate risks, which highlights the need for an integrated climate/nature approach. Santander UK will continue to delve deeper with this assessment and adapt its risk management approach as industry knowledge and methodologies evolve. #### Biodiversity and nature in our E&S risk management policy Santander embeds nature and biodiversity conservation measures in financing and investment policies. | | | | --- | --- | | | | | | For more details on our E&S risk management policy, see section 3.2.3 '[Management of environmental and social aspects](#i6ecb2a0d58d04b53bfadfa2a833efaa7_181)'. | | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nature-based solutions are key to carbon storage and climate resilience. Santander supports several initiatives that foster these solutions: • Biomas (Brazil): Reforestation of two million hectares with two billion native trees over the next 20 years. • Santander España – Motor Verde: Reforestation of three forests covering more than 300 hectares, absorbing 82,000 tonnes of CO₂e. • Santander UK: Continued support for the Net Zero With Nature initiative with UK National Parks, helping develop a platform to mobilize private financing for nature-based solutions. • Santander México: Since 2021, the LikeU programme has enabled customers to support reforestation initiatives in partnership with Reforestamos México. | | | | | | | | #### Santander and the Brazilian biomes Santander promotes the protection and sustainable development of Brazil’s biomes, which is critical to tackling climate change and conserving biodiversity recognizing that long-term prosperity depends on a healthy natural ecosystem. We need economic growth, but it must be sustainable. Brazil’s emissions are estimated at 2,15 billion tonnes of CO₂e, representing approximately 4% of global emissions, with land-use change (42%), mainly deforestation, together with agriculture (29%), being the main sources. A significant share of deforestation remains illegal, particularly on undesignated public lands, driven by speculation and weak land governance, despite recent progress in reducing these figures. Although Brazil has a strong environmental legal framework, such as the Forest Code, the main challenge continues to be its effective implementation and enforcement to curb deforestation and environmental degradation. Addressing GHG emissions and biodiversity protection in Brazil requires a multilateral approach that includes strengthening the implementation of environmental laws, continuously promoting sustainable agricultural practices, and enhancing monitoring and transparency. Santander supports Brazil’s transition to a low-carbon and resilient economy by integrating climate and biodiversity considerations into its business model, promoting sustainable finance, and fostering innovation that links environmental preservation with inclusive economic growth. We’ve been working with our customers to promote sustainable development in Brazil for years. Santander has been integrating environmental and social risk analysis into credit assessments since 2002 and in 2016 became the first bank in Brazil to formally incorporate a sustainability score into corporate customers’ credit rating. Environmental and social reviews of companies Santander Brasil conducts annual environmental and social assessments for wholesale and SME customers with higher exposure or credit limits above BRL 7 million, particularly in 14 Annual report 202553 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | priority sectors. This makes our financing practices to be aligned with environmental laws, human rights standards and best sustainability practices. Each year, we assess around 2,000 customers through a standardized E&S questionnaire that evaluates environmental management, social practices, supply-chain controls and climate risk exposure. Our team of specialists cross-checks responses against public data – including government permits, fines, embargoes, lawsuits and contaminated-land reports – and assigns a score from 1 to 5 across environmental, social, and climate dimensions. The identification of potential risks requires enhanced due diligence and mitigation plans, and we embed the results in the customer’s credit assessment and sustainability rating. Regular monitoring and reviews ensure that customers remain compliant and progress toward sustainable practices. The E&S assessment also incorporates climate-related physical and transition risks, such as water stress, climate resilience and exposure to deforestation- linked supply chains. For high-impact sectors such as mining, agriculture, sugar and beef production, we apply additional safeguards and sector-specific procedures. Through this structured analysis, Santander promotes responsible financing, boosts transparency, and supports its customers’ transition to a low-carbon and inclusive economy. | | | --- | | | | Outcome of the E&S risk analysis in Brazil in 2025 | ![30236569905758]() Farmers and ranchers In Santander Brasil, beyond credit approval, we monitor approximately 19,000 rural properties (that have been financed or pledged as collateral in the bank’s operations) by using official data sources, satellite images, and advanced data tools. Our alerts cover various risks, including illegal deforestation, government embargoes, modern slavery, and incursions into protected territories such as indigenous lands, Quilombola communities, conservation units, archaeological sites, and public forests. If we detect any irregularities, we request an explanation from the customer, regardless of the biome where the property is located. If we uncover a breach of environmental laws or regulations, our standard contracts enable us to demand the early repayment of loans and to take other necessary measures to mitigate risks. We also use internet-based satellite-imaging tools such as Copernicus Browser and MapBiomas to track deforestation and tree cover loss on customers’ farms and ranches over time. These tools help us strengthen our monitoring capacity and check that our credit portfolio aligns with our sustainability and risk management commitments. Collaborating with initiatives to stop deforestation Febraban Protocol for livestock in the Amazon Santander actively collaborates with customers, governments, regulators and NGOs to tackle illegal deforestation. Santander Brasil is a member of Febraban’s committee on forestry and agribusiness. We have been seeking commitments from beef processing customers in the Amazon since 2020. In 2021, Santander Brasil began engaging with more than a dozen of these customers to tackle illegal deforestation linked to their supply chain by 2025. Santander Brasil, along with other banks, shared lessons learnt with Febraban, which lead to the creation of the sectorial protocol - SARB 026/2023 - in March 2023, which sets the standards for managing the risk of illegal deforestation in the bovine meat chain. The protocol set out the guidelines that its signatories were to adopt. By signing the protocol, Santander has aligned its ambition with the Brazilian financial industry, and has been engaging with its meatpacking customers. This requires beef processing customers with slaughterhouses in the Brazilian Legal Amazon region to end illegal deforestation by December 2025, both from direct suppliers of cattle and Tier 1 indirect suppliers and demonstrate progress against. They also must meet mid-term milestones. Signatory banks must monitor the implementation of actions by the deadlines that the law stipulates, review customers' public reports on the dates that the protocol establishes, and take measures based on the content that beef processing customers publish. Since setting this objective, Santander has actively engaged with all beef processing customers that the protocol affects, leveraging our technical expertise to assist in developing their traceability plans and reports. During 2025, all progress reports from customers under monitoring were reviewed for compliance. Those who failed to present the required plans had their credit limits temporarily suspended and reinstated only upon compliance. We will continue to act accordingly and monitor compliance with the milestones set by the Febraban protocol, as well as checking adherence to the implementation timeline. Innovative Finance for the Amazon, Cerrado and Chaco (IFACC) Our participation in IFACC focuses on structuring innovative financial mechanisms to support deforestation-and-conversion- free beef and soy production models in the Amazon and Cerrado. The IFACC framework has enabled disbursements of USD 498.75 million and supported sustainable practices across 341,434 hectares, in addition to agroforestry systems (1,754 ha), ecological restoration (739 ha) and the protection of native vegetation (55,613 ha). 2025 saw the formal launch of the Catalytic Capital for the Agricultural Transition , a blended-finance debt fund (initial capital of USD 50 million; target size of USD 200 million) that aims for 1:4 leverage and is expected to support the protection or recovery of more than 500,000 hectares, avoid up to 240 million tonnes of CO₂, and directly benefit over 1,000 farmers by 2030. Nature-based Solutions (NbS) investment collaborative In 2024, Santander became the first bank to join Brazil’s NbS investment collaborative, a platform led by global climate investors and coordinated by Capital for Climate, with anchor Annual report 202554 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | funding from the Finance Hub of the Gordon and Betty Moore Foundation, and additional support from The Rockefeller Foundation and Santander. Between 2023 and 2024, the platform allocated USD 2.1 billion and set a USD 2.67 billion target for 2025, with aggregated plans totalling USD 10.4 billion by 2027. The pipeline of investible NbS projects in Brazil is expanding rapidly. Developers plan to more than double their deployment capacity by 2028, with USD 6.1 billion in capital required to meet projected needs by 2027. Project opportunities increasingly align with institutional investment criteria, including scale, replicability, land tenure security and predictable cash flows. Farmers and project sponsors are also demonstrating that nature restoration can enhance both productivity and profitability. The total pipeline is expected to grow from 5.1 million hectares in 2026 to 9.6 million hectares by 2028, spanning both primary NbS and conservation- focused initiatives. Amazon Finance Network Since 2023, Santander Brasil has been an active member of the Amazon Finance Network, a multi-stakeholder platform dedicated to advancing sustainable finance in the Amazon region. The AFN brings together more than 50 financial institutions, including banks, funds, cooperatives, and development finance entities, to mobilize capital that supports inclusive, resilient and environmentally responsible growth. In 2025, AFN members collaborated across four priority areas: financial inclusion, agrifinance, carbon markets, and innovative finance. Santander Brasil co-led the carbon markets workstream alongside The World Bank, contributing technical expertise and strategic guidance to shape investment frameworks that value nature-based solutions. One of the key outcomes of this engagement was the joint Call to Action that outlines practical steps for overcoming barriers to private sector investment in the Amazon. Biomas Santander is a co-founder of Biomas, an ecosystem restoration company committed to reforesting and protecting two million hectares of degraded land in Brazil over the next 20 years. The initiative’s aim is to plant two billion native trees and remove approximately 900 million tonnes of CO₂e from the atmosphere to make a material contribution to Brazil’s climate and biodiversity goals. In 2025, Biomas launched its first large-scale forest restoration project in southern Bahía, in partnership with Veracel Celulose (which is providing land and operational support) and Carbon2Nature Brasil (a joint venture between Iberdrola and Neoenergia that develops high-integrity carbon credits). Known as the Muçununga Project, the initiative aims to restore 1,200 hectares of the Atlantic Forest over a 40-year horizon by planting two million seedlings from more than 70 native species, including yellow ipe, jatobá and jacarandá-da-bahia. The project is expected to deliver outcomes across four key areas: • Climate: Restoration of the Atlantic Forest will help mitigate climate change by removing carbon from the atmosphere. • Biodiversity: Reintroducing a wide range of native species will help rebuild natural habitats and strengthen ecosystem resilience. • Social: The initiative promotes inclusive development by involving local communities and generating employment, skills, and shared value. • Carbon markets: The carbon credits issued will adhere to high- integrity standards and provide measurable environmental and social co-benefits. Brazil’s Climate Fund Operation to Support Reforestation in the Amazon In April 2025, Santander enabled the first transaction under Brazil’s Climate Fund to support reforestation efforts led by Mombak, a Brazilian company that focuses on large-scale carbon removal through native forest restoration in the Amazon. This marked a significant milestone for climate finance and nature-based solutions in Brazil. The Climate Fund is an instrument of Brazil’s National Policy on Climate Change, managed by the Ministry of the Environment. It aims to channel financial resources to projects that contribute to climate change mitigation. Santander issued a bank guarantee to enable the disbursement of BRL 100 million in support of Mombak’s reforestation work in the state of Pará. The funding will help scale the company’s partnership model with rural landowners, combining high-integrity carbon capture with financial incentives for sustainable land use. Beyond its environmental contributions, the project is expected to generate positive social outcomes by stimulating the regional economy, creating jobs and strengthening the reforestation value chain. Social impact We understand that supporting the socioeconomic development of the Amazon and other biomes and their residents is fundamental for their preservation and for Brazil’s development. Helping local people maintain their livelihoods is key to maintaining this ecosystem. We want communities and entrepreneurs to develop further and count on our support as they do. Amazon Journey Platform In 2022, Santander joined forces with other financial institutions and stakeholders to help launch the Jornada Amazônia platform, operated by Fundação Certi. This initiative seeks to strengthen the innovation and entrepreneurship ecosystem of the Amazon region, with a focus on bioeconomy solutions for forest conservation. The platform’s core objectives include training 3,000 people and supporting the creation of 200 startups by the end of 2025. The results achieved since 2023 reflect the emergence of a dynamic and maturing innovation ecosystem that is shaped by technological innovation, talent development, diversity, and a deep understanding of the region’s social and economic potential. The initiative has mobilized more than 9,500 people and provided training to more than 3,000. A total of 1,991 projects have been registered, of which 185 have received support; in addition, 465 businesses have been registered, 104 were strengthened and qualified, and 29 start-ups have been ramped up. As part of our contribution to the platform, we mobilized 20 senior executives to mentor early-stage ventures and support entrepreneurs on people management, legal and regulatory matters, investor access, network development, strategic vision, and business direction. In 2025 alone, Santander professionals supported 11 start-ups under the initiative. | | | | --- | --- | | | | | | For more details on Santander and the Brazilian Amazon, see santander.com . | 15 In accordance with local law and regulation. 16 The scope was also adjusted by excluding short-term trade finance to be better aligned with market practice and have better internal consistency. Annual report 202555 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Santander and COP 30 Throughout 2025, most notably in the lead-up to and during the United Nations Climate Change Conference (Conference of the Parties, COP), we took part in key climate and sustainability discussions in Brazil and globally. Our participation reflects Santander’s continued commitment to enabling the transition to a low-carbon economy through financial innovation, strategic partnerships and capital mobilization aligned with sustainable development. Key actions in 2025 included: • Engaging in more than 50 forums on nature-based solutions, decarbonization, carbon markets, blended finance, de-risking innovative mechanisms, and sustainable finance. • Hosting customer events focused on sectoral transition strategies, such as transportation and logistics, agribusiness, and hard-to-abate industries. • The selection of four Santander Brasil case studies for major COP-30 related platforms, particularly for nature-based solutions and innovative sustainable finance. These actions underscore Santander’s leadership in advancing sustainability and supporting Brazil’s ecological transformation. #### 2.4 Aiming to align our activity with the Paris Agreement Goals In this section we cover how Santander manages the following IRO: | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | I- | Adverse impact on climate and the environment due to the bank’s financing of, or investment in, certain non- sustainable assets and activities. | | | | | | | We continue to work along the following lines: ▪ Financed emissions from Balance sheet: focusing on scope 3, category 15 emissions (see sections [2.4.1 'Aligning our](#i6ecb2a0d58d04b53bfadfa2a833efaa7_130) [portfolios'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_130), [2.4.2 'Monitoring of other portfolios'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_133) and [2.4.3](#i6ecb2a0d58d04b53bfadfa2a833efaa7_136) ['Measuring and assessing other portfolios'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_136)). ▪ Asset Management: these are outside of our balance sheet and thus not considered as scope 3 emissions (see section  [2.4.4](#i6ecb2a0d58d04b53bfadfa2a833efaa7_139) ['Santander Asset Management’s (SAM) alignment strategy and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_139) [approach'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_139)) ▪ Own operations: direct and indirect emissions including scope 1&2 and material scope 3 (beyond category 15) (see section [2.4.5 'Our environmental footprint'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_142)). #### Ambition and approach We continue working towards our ambition of net zero carbon emissions by 2050 by progressively setting specific actions regarding the footprint of our own operations and to support our customers in their climate objectives, prioritising the high-emitting sectors - which also bear high and very high transition risk according to our climate heatmap. We also focus on energy security and affordability. We set targets 15 for the wholesale segment in the power generation, thermal coal, oil & gas, steel and on the automotive sector from two perspectives: auto manufacturing (wholesale segment) and auto lending (consumer loans for the purchase of passenger cars in Europe). We update our strategy and targets to incorporate the latest scientific insights and changes in local regulation. During 2025, Santander updated its climate alignment targets. We wanted to ensure these remain credible and consistent, while reflecting the real pace of transition across the economies in which the Group operates. Five years after establishing our first targets (all the details are covered below), this update refined the scope, metrics and scenarios to reflect better our role as a facilitator of the transition, as well as how external factors (especially public policy) determine the pace of the transition. In particular, the Group refined the perimeter 16 of certain sectoral targets. In oil & gas, alignment target now focus on Scope 1 and 2 emissions, where customers have greater operational control and where banks can more effectively support transition efforts, while Scope 3 emissions are monitored given their scale and their strong dependency on global policy, technology and demand-side developments. Following our latest annual portfolio alignment materiality assessment, aviation has moved from target to monitoring due to its declining alignment materiality and strong dependence on policy and technological developments. This decision is consistent with our dynamic, criteria-based approach to prioritising sectors where we can have the greatest impact, and with the treatment applied to other sectors. The incorporation of target ranges and regional scenarios allow us to incorporate the differing pace of transition in markets and sectors, differences in regulatory frameworks, and reflects the latest science and policy developments. More detail follows. #### Progress and dependencies The climate performance dynamics of all these sectors are heavily dependent on their regulatory and policy framework, technology changes and customers behaviours. Both the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change highlight that deep emissions reductions will require the widespread adoption of technologies that are not yet commercially available or are only at demonstration scale. In sectors where corporate customers are making progress, we have set targets while acknowledging these external dependencies. 17 The Stated Policies Scenario is designed to provide a sense of the prevailing direction of energy system progression, based on a detailed review of the current policy landscape. Annual report 202556 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | For the sectors that are heavily dependent on further regulation to align, and where most of the customers are retail, we are monitoring their financed emissions; but we will refrain from setting targets until the regulatory and policy framework is clear, consistent and supportive of both economic growth and consumer behaviour changes. We have been sharing our understanding and experience of these policy gaps with authorities and other sectors. Economic growth is essential to finance the transition - and to ensure it is affordable and fair in both developed and developing economies. It is therefore important that policies supporting the transition do not undermine growth, nor the provision of reliable and affordable energy. We believe the transition is a journey – not a moment in time – for companies, sectors and countries. Governments' policies or regulations to affect sudden change are therefore likely to undermine growth and decrease investor confidence. A 'one size fits all approach' to the transition ignores the economic, social and political reality facing different sectors in different regions. We need a more pragmatic, flexible approach. Therefore we consider the financial sector should be considered as an enabler of the transition, but not as the solution, as we cannot substitute the authorities and public bodies in meeting the objectives they have established. Different governments have differing policies. Clarity on these policies supports investments in the transition. Today, according to IEA, there is still a large gap between the Stated Policies Scenario 17 projections and Net Zero Emissions by 2050 Scenario. This gap also exists in Santander's core markets. Our efforts to pursue our alignment targets also involve engaging with public bodies whose policy decisions and actions are critical if companies - including banks like Santander - are to make progress towards net zero carbon by 2050. If policies (or the lack of them) remain as they are today, a significant gap will persist between net zero scenario pathways and what will actually happen. We also monitor technological, economic and geopolitical factors that bear on transition, including the energy security and the variability of approaches in different markets. When assessing risks and opportunities our decisions are informed by markets, our stakeholders, and in accordance with local law and regulation. Our climate targets aim to help our customers meet their transition goals while keeping a robust and competitive business model that supports economic growth and energy security. Target setting also reflects constraints and limitations faced in different jurisdictions and sectors. The transition must be just and orderly. Our ambition is also supported by alignment targets and portfolios under monitoring. With them we monitor the most crucial part of each sector’s value chain, focusing on those that are most emissions-intensive, actionable and where progress can be measured, also considering the availability of quality data and market practices. We prioritize engagement and assess each case individually from a long-term perspective. This includes evaluating financing needs across all sectors without applying blanket exclusions or refusing credit or other services solely based on climate sector classification, instead we consider credible transition plans and the context of each customer's operating environment. We are monitoring the materiality of the capital markets emissions (facilitated emissions) for the bank, and for the moment we consider them not material, due to low exposure. Our focus is on the areas most material to Santander. Sectors like cement, shipping, aluminium are still deemed non-material due to low exposure or strong dependence on policy and technological developments. We use external data and models from third parties with recognized market reputation and expertise. Finally, we rely on financial and non-financial information from our customers. Though the non-financial information required is becoming more available as more companies begin to report GHG emissions, it still falls short in certain sectors and regions. And, where available, it might not be the most suitable or accurate. In many cases, data is only available with a significant time lag. If no emissions data exist, we estimate them based on proxies (average emissions by industry, country, etc.). Once we obtain our customers' total emissions, we apply our attribution factor in line with the PCAF approach to determine Santander’s financed emissions. Emissions accounting and science-based alignment target methodologies are still relatively new areas that are improving. More methodologies need to be developed to inform decisions and actions. #### Putting our vision into practice We are introducing target ranges applying a weighted average of the regional scenarios from the IEA to reflect our footprint. These ranges are based on regional IEA NZE2050 and Announced Pledges scenarios (APS), which, at present, is 1.7ºC. They also facilitate incorporating different transition speeds and regulatory frameworks, as well as to follow the latest science and policy developments. In the oil & gas sector, we have also evolved our methodology by moving from absolute financed emissions to two intensity-based metrics: (i) an alignment target for operational emission intensity (scope 1+2), and (ii) monitoring of the primary energy mix, which reflects the carbon intensity of our global energy supply portfolio. This approach recognizes the role of producers in reducing operational emissions while acknowledging that fossil fuel consumption is primarily driven by demand-side dynamics —such as electrification of transport, heating and industrial processes, where we already have targets in the relevant sectors for Santander. Overall, these updates help guide what we do, so that our actions reflect the realities of the markets and economies in which we operate. We will continue to review our targets annually, integrating the latest science, regulation, and technological advances, so that our strategy remains both ambitious and credible in supporting a just and orderly transition. Annual report 202557 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | Alignment targetsA | | | | | | | | | | | | | | | | | | | | | | Sector | | Scenario | Metric | Baseline year | 2022 | 2023 | 2024 | 2030 targets | Scope of emissions | Value chain in scope | | | | | | | | | | | | Lightening.jpg | Power generation | NZE2050 - APS B | kgCO2e/ MWh | 2023 | | 149 | 88 | 102 - 124 (-32-17%) | 1 | Upstream / Generation | | | } | Midstream / Distribution | | | } | Downstream / End product | | | | PetrolTower.jpg | Oil & gas | tCO2e/ TJ | 2023 | | 3.08 | 3.15 | 2.31 - 3.03 (-25-2%) | 1 + 2 | Integrated / Diversified | | | | | | | | | | | | Upstream / Extraction | | | } | Midstream / Distribution | | | } | Downstream / Trading | | | | Steel.jpg | Steel | tCO2e/ tS | 2023 | | 1.47 | 1.51 | 1.17-1.28 (-20-13%) | 1 + 2 | Upstream / Materials extraction | | | } | Manufacturing | | | } | Downstream / End product | | | | CarManufacturing.jpg | Auto manufacturing | gCO2/ vkm | 2023 | | 135 | 128 | 80 - 98 (-41-27%) | 3C | Upstream / Suppliers-Materials | } | Midstream / Manufacturing | | | } | Midstream / Dealers | | | } | | | AutoLending.jpg | Auto lending Europe D | gCO2e/ vkm | 2022 | 137 | 133 | 129 | 70-109 (-49-21%) | 1 + 2 | | | | | | | | | | Downstream / End-users | | | ThermalCoal.jpg | Thermal coal | Phase-out targets to eliminate exposure by 2030 to power generation customers with a revenue dependency on coal of over 10% and thermal coal mining. | | | | | | | | | | | | | | | | | | | | Details on targets' scope are available in the following pages. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | Monitoring of other portfolios | | | | | | | | | | | | | Sector | | Metric | 2023 | 2024 | Scope of emissions | Value chain in scope | | | | | | | oil_rig.jpg | Primary energy mix | tCO2e/TJ | 45.1 | 42.0 | 3C | Upstream / Generation | | Midstream / Distribution | | Downstream/End Product | | | Plane.jpg | Aviation | gCO2e/RPK | 83 | 78 | 1 | Upstream / Suppliers | } | Midstream / Construction | } | Downstream / Airliners | | | Building.jpg | Commercial Real Estate E | kgCO₂e/m² | 22.89 | 26.14 | 1 + 2 | Upstream / Suppliers | } | Midstream / Construction | } | Downstream / Owners | | | Mortgages.jpg | Mortgages F | kgCO₂e/m² | 21.06 | 19.00 | 1 + 2 | Upstream / Suppliers | } | Midstream / Construction | } | Downstream / Homeowners | | | Agricultura.jpg | Agriculture G | mtCO2e | 8.41 | 7.12 | 1 + 2 | Upstream / Suppliers | } | Midstream / On Farm | } | Downstream / End product | | | Details on our progress on alignment available in the following pages. | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | Part of the sector value chain in-scope, due emissions materiality and/or actionability | | | Part of the sector value chain out of scope | A. The efforts to meet these targets are in accordance with local law and regulation. B. NZE2050: Net Zero Emissions by 2050 Scenario. APS: Announced Pledges Scenario. 2024 publication except oil & gas 2023. C. Use of sold products. D. Consumer lending for acquisition of passenger cars, covering a significant majority of the exposure in Europe. E. Financed emissions of the UK, Spain and Portugal CRE portfolios. 2023 data does not include Portugal. F. Financed emissions of the UK, Spain and Portugal mortgage portfolios. 2023 data does not include Portugal. G. Financed emissions of part of the Brazil agriculture portfolio. From 2024 onwards, and in line with materiality criteria, the calculation includes only soy, corn and beef cattle. The 2023 figure was recalculated to ensure comparability. | | | | --- | --- | | | | | | For more details on our alignment targets, see note [SN 4. 'Our transition plan](#i6ecb2a0d58d04b53bfadfa2a833efaa7_232)'. | #### Implementation strategy CIB implementation strategy entails several actions to support our customers in their climate objectives and to achieve our alignment targets. These actions include an assessment of our customers’ transition plans, customer engagement, segmenting customers based on a climate tiering approach, and dedicated portfolio steering governance. We also collect additional data to supplement the risk analysis process; and conduct E&S risk management policy reviews. Given our actions relate directly to our customers’ activity, it is not practical to make quantitative estimates of how each action contributes to achieving our targets. All actions described below cover the CIB business globally. Customer climate tiering A key element of our implementation strategy is the customer climate tiering approach, which we align with local government laws and policies. The outcome of this tiering approach is an assessment of our customers’ current and expected progress to align with our climate sector objectives. Over the last few years, we have implemented this approach for all sectors with alignment targets (automotive manufacturing, power, oil & gas and steel) and adapted it where necessary to account for sector differences. We review the climate tiering assessment for each sector every year to reflect our customers’ progress. Our approach aims to facilitate the achievement of our alignment targets and to develop a strong understanding of our customers’ transition strategies towards low-carbon business models. We take a business approach and do not apply any individual customer exclusions solely based on customer climate tiering. This framework is supported by governance processes, involving various internal stakeholders, such as front office teams, risk functions, and senior management to guide the potential portfolio Annual report 202558 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | steering actions (for more details, see the Portfolio Steering section below). It is structured around four main iterative steps: Collect, Assess, Engage and Review. We have used several internationally recognized references as inputs and adapted them to our requirements and objectives. Collect: We collect relevant information as part of regular customer dialogue and engagement. In addition, we source specific climate related information through tailored requests that contain transition-focused elements designed to help us better understand companies’ alignment strategies. We also seek to source reliable and consistent information from credible third parties to complement our understanding. We collect and update this information both at the customer onboarding stage, and as part of the regular business and risk assessment review with each customer, which we perform at least once a year. Assess: Our assessment consists of a two-step approach designed to categorize our customers according to their emissions pathway and perceived quality of their transition strategy. The first step involves assessing how our customers’ emissions trajectory aligns with our current sectoral portfolio baseline and portfolio targets. The second step assesses the quality of each customer’s transition plan. Our transition plan assessment methodology focuses on four pillars: 1. Targets pillar: This focuses on the quality and ambition of the customer’s quantitative GHG emissions targets. Where possible, we assess both short- and long-term, as well as absolute and intensity reduction targets. 2. Action plan pillar: This considers the credibility of the customer’s implementation strategy to achieve its alignment targets. We assess the business strategic integration of climate change risks and opportunities; the existence of climate scenario planning; planned CAPEX for climate solutions; and time-bound action plans to achieve targets. 3. Disclosure pillar: This focuses on the transparency of reporting on historical emissions performance across all relevant scopes, the level of assurance, and the degree of reporting alignment with leading reporting frameworks such as TCFD. 4. Governance pillar: This considers the level of management oversight and governance of the customer’s transition strategy. We assess the level of seniority of executives accountable for climate strategy, and board committee oversight of climate change issues. Our transition plan assessment methodology includes higher weightings for assessment criteria deemed to be critical to credible transition plans, compared to lower weightings for those that are considered supporting criteria. The more highly weighted criteria are designed to prioritize focus areas for customer engagement. Ultimately, our customer climate tiering system comprises four categories (Leader, Strong, Moderate and Weak). | | | | | --- | --- | --- | | | | | | Two step tiering system | | | | | | | | 1.gif GHG emissions profile alignment | | • Current GHG emissions profile • Future targeted GHG emissions trajectory • Assessment of alignment with Santander’s pathway | | ↓ | | | | 2.gif Transition plan quality assessment | | • Internal methodology to assess perceived quality of transition plans • Developed using established transition plan assessment methodologies | | | | | | --- | --- | --- | | | | | | Transition pillar | | Overview | | | | | | 1. Targets | | Quality and ambition of quantitative targets to reduce GHG emissions | | | | | | 2. Action plan | | Depth of alignment strategy to achieve GHG emissions reduction targets | | | | | | 3. Disclosure | | Transparency on GHG emissions reporting across relevant scopes | | | | | | 4. Governance | | Management oversight and governance of transition strategy | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Tier categories | | | | Description | | | | | | | | Tier 1 | | Leader | | • Emissions profile fully aligned with Santander’s pathway • Strong transition plan | | | | | | | | Tier 2 | | Strong | | • Emissions profile fully aligned with Santander’s pathway but improvement needed in transition plan; or • Strong transition plan but emissions profile partially aligned with Santander’s pathway | | | | | | | | Tier 3 | | Moderate | | • Emissions profile partially aligned with Santander’s pathway, but improvement needed in transition plan; or • Emissions profile not aligned with Santander’s pathway, but strong transition plan | | | | | | | | Tier 4 | | Weak | | • Emissions profile not aligned with Santander’s pathway • Weak transition plan | Senior experts from our ESCC, Portfolio Alignment and Sustainability Solutions teams delivered internally-organized briefings to sector- specific relationship managers and ESCC analysts. These focused on gathering information to complete the transition plan quality assessment (the second step in our customer climate tiering system). Expert resources from our global Sustainability Solutions team are made available for further education and advice on customers' transition plans assessment. Annual report 202559 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Engage with customers: Our customer climate tiering system seeks to facilitate tailored transition dialogue to help lower-tiered customers move up to higher tiers over time, consistent with their transition or business strategies. In 2025, we continued to focus our customer engagement efforts on lower-tiered customers. We use internal transition assessment dashboards for relationship managers, designed to help identify of customer-level priority areas, industry benchmarking, and opportunities to support our customers in financing their transition. Of all the customers that are in scope of our targets, approximately two-thirds included sustainability-related discussions in 2025. Review: Our relationship managers perform the customer transition plan assessment in cooperation with ESCC risk analysts. Our Sustainability Solutions and Portfolio Alignment teams then carry out portfolio level reviews to determine final tierings. This portfolio level review is important to help identify key trends and challenges in each sector, as well as for future transition plan assessment methodology improvements. We completed initial assessments for both steps for all sectors where targets have been set. Subsequently, we reviewed and enhanced transition plan quality assessments, drawing on updated reference methodologies and sector-specific research. This led to improved guidance and a more focused set of questions that include sector-specific questions to assess transition plan quality. The figure below shows the breakdown of our climate tiering system output for all entities in scope of our original sector targets, by sum of drawn exposures as of the end of 2025. See sections below for further details on each sector’s portfolio composition and evolution. | | | --- | | | | Climate tiering aggregated for the sectors for which we had set targets A | ![28037546540031]() A. Based on 2025 year-end drawn exposure, according to portfolio alignment methodology, and including project finance, both in operation and under construction. Among our corporate customers with drawn exposure and a transition plan assessed in 2025, around two-thirds have set quantitative emissions-reduction targets for sector-material GHG scopes. These companies’ targets cover both the 2030–2039 period and longer-term ambitions towards 2040–2050. The same proportion have established absolute reduction targets. Approximately four-fifths have adopted time-bound action plans to align their business with a low-carbon pathway, while a similar share conduct climate-scenario analysis and have implemented the TCFD recommendations. Over half report or commit to align future CAPEX with low-carbon solutions. More than four-fifths have obtained third-party verification of their scope 1 and 2 emissions and have assigned board- or management-level responsibility for climate oversight. Portfolio steering CIB’s portfolio steering governance is designed to identify actions to support our customers’ transition and manage our portfolio to achieve our climate targets. A quarterly portfolio steering meeting operates at the core of our governance. Its scope includes monitoring progress towards the achievement of our portfolio targets. All relevant CIB functions are represented at this meeting. In addition, a monthly portfolio alignment meeting provides technical support by reviewing methodologies and monthly critical KPI performance. Our risk appetite and lending policies are important tools for monitoring and steering the portfolio towards our financed emissions targets. Our customer climate tiering assessment informs our risk appetite for each sector where targets have been set. We comply with fair access laws and policies where they are applicable. In addition, Santander’s E&S risk management policy sets out the criteria for providing financial products to customers involved in several of the sectors within the scope of our financed emissions targets. For all sectors with alignment targets, we’re embedding customer climate tiering and engagement considerations in annual credit risk reviews. For one-off transactions (e.g. project finance), we assess a transaction’s impact on financed emissions targets for the relevant sector portfolio. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | Contributing to integrity in transition finance | | | | | | | | | | | | | We contribute to furthering industry knowledge of transition finance as an enabler towards net zero. As part of our long- standing support for education, employability and entrepreneurship, we have collaborated with the University of Oxford, funding the development of the Transition Finance Centre of Excellence for the last three years. This centre aims to play a prominent role in defining aspects of transition finance, such as best practice sectoral transition plans and new tools and insight for practitioners. Research has focused on multiple angles of transition finance, including developing a deeper understanding of assessing companies’ transition plans in emission-intensive sectors, | | | exploring external dependencies in corporate transition plans and assessing transition plans with more granular asset- based approaches as well as equity principles. Research has also included corporate net zero transition plan implications for loan pricing, the development of tools to assess sustainability-linked bond pricing, and other topics such as the economics of critical minerals and climate transition policy. For more details about this collaboration and published research outputs, please see smithschool.ox.ac.uk. | | | | | | | | | 18 The efforts to meet these targets are in accordance with local law and regulation. 19 For the power sector, we source emissions and production data from GlobalData, the Transition Pathway Initiative (TPI), S&P Trucost, and client disclosures. For all sectors, we gather financial data from Capital IQ and customers’ official reports. Where data is unavailable, we apply a proxy. Annual report 202560 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 2.4.1 #### Aligningour portfolios 18 #### Power generation 19 Sector boundaries: For the power generation sector, we assess the upstream/generation business in the value chain. Our portfolio includes both corporate customers and project finance transactions. Industry dynamics: The demand for electricity is expected to grow significantly in the coming years, driven by the electrification of sectors such as transportation and buildings, the increase in AI and corresponding data centres, and other factors. The power‑generation sector is adding low-carbon production capacity to cope with the increased demand and to replace fossil- fuel power generation. The integration of renewables, energy‑storage and grid flexibility is a key challenge. The IEA estimates that to meet the Paris objectives, investment in energy will need to increase from USD 3.3 trillion today to around USD 4.8 trillion per year over the next decade, with most of the increase flowing to clean energy, while fossil investment declines in relative terms. Portfolio composition: The exposure to project finance (both in operation and under construction) outweighs the exposure to corporate customers. Within the corporate portfolio, around 85% of the portfolio is classified as tier 1 and 2 customers, typically leading power companies with existing or strong objectives to renewables. We observe clear regional differences in climate tiering (with Europe being the leader), while many emerging market entities are still developing and disclosing their transition plans. | | | --- | | | | Power generation portfolio distributionA | ![16849]() A. Based on 2025 year-end drawn exposure, according to portfolio alignment methodology, and including corporates and project finance, both in operation and under construction. Portfolio evolution: 2024 saw a significant decrease in the portfolio's overall emission intensity, driven by a reduction in exposure to high-carbon intensity assets and an increase in the volume of project finance assets still under construction. Supporting our customers in their alignment journey implies investing in both renewable technologies and transition technologies, which may still lead to temporary increases in physical emission intensity in the future. | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Financed emissions and exposure metrics in power generation | | | | | | | | | | Sector | Year | Exposure (drawn amount billion euros) A | Absolute emissions (MtCO2 e) | Physical emissions intensity (kgCO2e/MWh) | Financial emissions intensity (MtCO 2 e/ EUR bn lent) | PCAF score | 2030 target (kgCO2e/MWh) | Reference Scenario | | Power | 2023 | 12.79 | 3.88 | 149 | 0.30 | 2.74 | 102 - 124 | IEA NZE2050 - APS (2024) | | 2024 | 12.16 | 2.07 | 88 | 0.17 | 2.72 | A. It includes Corporates and Project Finance in operation and under construction. 20 For the Oil & Gas sector, we source emissions and production data from Wood Mackenzie. 21 For the steel sector, we source emissions and production data from CDP, Transition Pathway Initiative (TPI), Asset Impact and client disclosures. Annual report 202561 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | --- | | | | | #### Oil & gas 20 Sector boundaries: For the oil & gas sector, we assess upstream companies, as well as integrated companies that undertake their own upstream oil & gas production. We assess physical emission intensity for operational emissions in scope 1 and 2. For scope 3 emissions see Primary Energy Mix on section [2.4.2 'Monitoring of](#i6ecb2a0d58d04b53bfadfa2a833efaa7_133) [other portfolios'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_133). Industry dynamics: Operational emissions from oil & gas upstream activities are a material share of global GHG emissions, estimated at 5 Gt CO2e by the IEA. The most important levers to reduce emissions are the electrification of facilities, methane‑flaring elimination, and carbon capture, utilisation and storage deployment. In this sense, 55 national and international oil companies have signed the Oil & Gas Decarbonization Charter with the ambition to reach net-zero operational emissions by or before 2050. Portfolio composition: This portfolio comprises geographically diverse companies. The climate tiering for this sector follows the same methodology as all other sectors (see description above), applying 2030 published commitments from oil & gas companies to assess step 1. Portfolio evolution: The physical emission intensity of our portfolio increased slightly in 2024, rising from 3.08 tCO2/TJ in 2023 to 3.15 tCO2/TJ. This was primarily due to an increase in the share of exposure in tiers 3 and 4, while individual companies' emission intensities have reduced. | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Financed emissions and exposure metrics in oil & gas | | | | | | | | | | Sector | Year | Exposure (drawn amount billion euros) | Absolute emissions (MtCO2 e) | Physical emissions intensity (tCO2e/TJ) | Financial emissions intensity (MtCO 2 e/ EUR bn lent) | PCAF score | 2030 target (tCO2e/TJ) | Reference Scenario | | Oil & gas | 2023 | 5.84 | 0.75 | 3.08 | 0.13 | 3.04 | 2.31 - 3.03 | IEA NZE2050 - APS (2023) | | 2024 | 5.44 | 0.71 | 3.15 | 0.13 | 3.04 | | | | --- | | | | | #### Steel 21 Sector boundaries: For the steel sector, we assess companies that attribute over 10% of their revenue to steel production. Industry dynamics: The main alignment levers for the steel industry are: shifting to low-carbon energy sources, (e.g. renewable energy or hydrogen), technological improvements (e.g. electric-arc-furnaces (EAF), carbon capture), and material efficiency and recycling. According to the 2025 report by Global Energy Monitor, EAF-based steelmaking capacity has grown by nearly 11% since 2020, and half of all steelmaking capacity currently under development plans to use EAF. Portfolio composition: The availability of reliable data has improved since previous reports. We take a conservative approach by assigning all customers with insufficient data to the lowest climate tier. This small, concentrated portfolio is sensitive to changes in composition, which have a noticeable impact on the overall emission intensity. Portfolio evolution: The physical emission intensity of our portfolio increased in 2024, rising from 1.47 tCO2e/TS in 2023 to 1.51 tCO2e/TS. This increase was due to a change in the composition of the portfolio, as some repayments were observed in customers with low emissions profiles. | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Financed emissions and exposure metrics in steel | | | | | | | | | | Sector | Year | Exposure (drawn amount billion euros) | Absolute emissions (MtCO2 e) | Physical emissions intensity (tCO2e/tS) | Financial emissions intensity (MtCO 2 e/ EUR bn lent) | PCAF score | 2030 target (tCO2e/tS) | Reference Scenario | | Steel | 2023 | 1.73 | 1.59 | 1.47 | 0.92 | 3.11 | 1.17-1.28 | IEA NZE2050 - APS (2024) | | 2024 | 1.47 | 1.36 | 1.51 | 0.92 | 3.04 | | | | --- | | | | | Automotive sector According to the IEA, road transport accounts for over 15% of global energy-related emissions. The switch from internal- combustion engines (ICE) to electric vehicles (EV) and plug-in hybrid electric vehicles (PHEV) is the most important alignment lever for this sector. We are supporting our auto-manufacturer customers in the adaptation of their business models and product offering towards EVs and PHEVs. As a leading auto end-user lender in Europe, we are also helping our retail customers finance purchases of an increasing number of EVs and PHEVs. We aim to align our global auto manufacturing and European auto lending loan portfolios, with a 2030 target-range and a 2030 target, respectively. Our approach is heavily dependent on 22 For the auto manufacturing sector, we source emissions and production data from JATO, Asset Impact and client disclosures. Annual report 202562 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | supportive public policy frameworks that stimulate consumer demand. Progress on both automotive sector portfolio targets will depend on several external factors such as: Regulation and policy: Public measures and policies play a pivotal role. For example, meeting the timelines set for reducing the fleet wide emissions in the EU would support this shift, as would the introduction of low-emission zones. Likewise, continued adoption of EV purchase subsidies has proven important for increasing market penetration, as demonstrated in the Nordic countries. Technology: A guaranteed supply of the required materials to produce EVs and PHEVs at scale is needed to match demand. Also, reducing EV and PHEV production costs is required to ensure affordability in comparison with ICEs, and thus ensure a just transition. Infrastructure: Reaching a high penetration of EVs and PHEVs will require a deep transformation of supply chains and the infrastructure that powers them (increasing the number of charging points and their performance) to shift from a model of predominantly ICE cars to an EV and PHEV majority. The investment needed for this infrastructure will require support from governments and other actors, which could be affected by conflicting interests such as energy security. OEMs commitments: For electric vehicles to become the market’s number one engine type, manufacturers must fulfil their commitments regarding their development and the phasing out of combustion engines. Auto manufacturing 22 Sector boundaries: Within the automotive sector, CIB focuses on the manufacturing of passenger cars, i.e. on Original Equipment Manufacturers (OEMs). The target metric is scope 3 GHG emissions from OEMs, measured by the average CO2 intensity per vkm of the fleet sold in the given year. Industry dynamics: The switch from ICE to EV and PHEV is the most important alignment lever for this sector. The uptake of these technologies depends on multiple external factors. Portfolio composition: The portfolio consists of large globally active auto manufacturers plus some pure EV players. Aside from these pure EV manufacturers, the carbon intensities of the OEMs’ fleets are within a relatively narrow band compared to other industries. Portfolio evolution: Emissions intensity improved from 135 gCO2/ vkm in 2023 to 128 gCO₂/vkm in 2024, mainly due to the change in the composition of the portfolio, though we also observe an overall average reduction in the emissions intensity of our customers during this period. | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Financed emissions and exposure metrics in the automotive sector | | | | | | | | | | Sector | Year | Exposure (drawn amount billion euros) | Absolute emissions | Physical emissions intensity | Financial emissions intensity | PCAF score | 2030 target | Reference Scenario | | Auto manufacturing | 2023 | 3.77 | 2.56 MtCO₂ | 135 gCO₂/vkm | 0.68 MtCO₂/EUR bn lent | 3.0 | 80 - 98 gCO2/vkm | IEA NZE2050 - APS  (2024) | | 2024 | 3.65 | 2.15 MtCO₂ | 128 gCO₂/vkm | 0.59 MtCO₂/EUR bn lent | 3.0 | | Auto lending Europe | 2023 | 62.40 | 6.78 MtCO₂e | 133 gCO₂e/vkm | 0.11 MtCO₂e/EUR bn lent | 2.7 | 70 - 109 gCO2e/vkm | | 2024 | 66.27 | 6.42 MtCO₂e | 129 gCO₂e/vkm | 0.09 MtCO₂e/EUR bn lent | 2.7 | Auto lending in Europe Industry dynamics: The alignment of this sector in Europe is driven by regulation and is particularly influenced by the emission- reduction targets imposed by the European Union. However, the pace of alignment will depend on external factors, such as government action (for example, subsidies for electric or low-emission vehicles, the development of charging infrastructure, automakers’ commercial targets, etc.). Portfolio evolution: 2024 emissions were 6% below the higher end of the target curve. SCF monitors key emissions-related metrics every quarter (total emissions, emissions intensity, auto lending portfolio exposure, PCAF score, etc.). It also runs these business-related actions to support the alignment of the auto lending portfolio: • Enter into new agreements and build on existing agreements with electric vehicle manufacturers. • Renew and build on existing agreements with traditional manufacturers that have credible transition plans. • Offer additional bundles of financial products and solutions for electric vehicles (e.g. installation and financing of home chargers, solar panels, etc.). • Implement new risk management methodologies and schemes for electric vehicles to broaden the range of residual value risk products and support the sale of electric vehicles under our agreements with manufacturers. • Work on loyalty programmes alongside electric car manufacturers to guarantee multiple cycles of vehicle use and help extend their useful life through preventive maintenance programmes, warranty extensions or quality seals that give confidence to users purchasing a used vehicle and contribute to reducing waste. The success of these actions depends entirely on shifts in electric vehicle supply, demand and regulation; manufacturers’ transition plans; and such other external factors as technology, infrastructure, government incentives and tariffs on electric vehicles. SCF aims to follow general market trends and help finance electric vehicles according to the transition to this vehicle type. SCF is working on automating emissions calculations through several technology-based tools. All such tools will align with host country laws, regulations, and policies. The Sustainability, business, ESG risk and reporting and other teams are monitoring 23 The exposure in Santander Polska in 2025 is EUR 0.5 billion. 24 For Energy Mix, we source emissions and production data from Wood Mackenzie, GlobalData, Transition Pathway Initiative (TPI), S&P Trucost, Asset Impact, and client disclosures. 25 For the aviation sector, we source emissions and production data from IBA and client disclosures. Annual report 202563 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | action plans and emissions performance, while commercial teams are performing actions to support alignment plans. Estimating the present and future resources needed to carry out our action plan is no easy task given the organizational complexity and scope of targets (13 countries, 16 units and many areas involved). | | | --- | | | | | #### Thermal coal phase-out Sector boundaries: For the thermal coal target, we assess customers for whom coal fired power generation represents directly more than 10% of revenues on a consolidated basis; and customers that own thermal-coal mines worldwide. Please refer to the Santander E&S risk management policy in section [3.2.3](#i6ecb2a0d58d04b53bfadfa2a833efaa7_181) ['Management of environmental and social aspects'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_181) for more details. Industry dynamics: Power utilities can reduce their usage of thermal coal power plants by replacing them with other technologies, e.g. combined cycle gas turbine or renewables. Thermal coal miners can either responsibly divest their mine or run down their mining activity, eventually closing the mine sustainably. Portfolio composition: Most of our customers in this group already have plans in place to comply with our policy in 2030. | | | | --- | --- | | | | | Exposure in thermal coal-related power & mining | | | Year | Exposure (drawn amount billion euros) | | 2023 | 4.4 | | 2024 | 4.2 | | 2025 | 2.3 23 | Portfolio evolution: We have been continuously reducing our exposure to thermal coal customers in scope of our target. Many of our customers will need financing to transition away from coal. Transition finance support to these entities may, therefore, temporarily increase before declining over the longer term as we aim to achieve our targets. #### 2.4.2 Monitoring of other portfolios In addition to alignment targets, we monitor other climate- relevant portfolios, which include commercial real estate (CRE) and mortgages in the UK, Spain and, starting this year, Portugal; agriculture in Brazil; and the aviation and primary energy mix sectors. We selected these sectors portfolios based on their portfolio alignment materiality, as well as their dependence on regulation to align, and their consumption dynamics, both at Group and country level as part of our sector climate approach. The objective of our assessments is to gain a better understanding of these portfolios’ climate profile, support our customers' transition, and measure progress over time. The exercise includes setting a baseline for financed emissions, analysing dependencies and internal and external alignment levers (such as market shifts and regulatory developments), outlining the governance continuous monitoring, improve data quality and identify commercial opportunities to support customers in their transition. | | | | --- | --- | | | | | | For more details on our monitoring portfolios, see note [SN 4. 'Our transition plan](#i6ecb2a0d58d04b53bfadfa2a833efaa7_232)'. | #### Primary energy mix 24 The world needs energy while reducing the carbon intensity of the energy it consumes. Moving towards low-carbon energy sources like renewable power generation, nuclear or hydro is the key driver. While this transition is essential, our ability to manage the underlying metric is constrained by external dependencies such as regulatory frameworks, policy developments and changes in customer behavior. Within this context, we assess the physical emission intensity of global scope 3 emissions from our financing of the different primary energy sources: oil & gas upstream activities, thermal coal mining and low-carbon power generation such as nuclear power, hydro, and renewables.  The transition dynamics in these sectors are predominantly driven by demand-side shifts—for instance, the switch from ICE to EV in the auto sector, from fossil-based power generation to renewables or from gas boilers to heat pumps in buildings. Our portfolio reflects these broader market trends. Its composition is shaped mainly by exposure to oil & gas production and to renewable energy generation, while the share of thermal coal production remains significantly smaller and less material. The total exposure decreased from 18.34 EUR bn in 2023 to 17.12 EUR bn in 2024. As these components evolve, so does the physical emission intensity of our primary energy mix. In 2024, this intensity decreased to 42.0 tCO₂e/TJ from 45.1 tCO₂e/TJ in 2023, driven primarily by a reduction in thermal coal exposure and an increase in the relative weight of renewable power and gas. #### Aviation 25 Exposure to aviation has reduced markedly from its peak in 2020, reaching in 2024 0.53 EUR bn, compared to 0.70 EUR bn in 2023. It now constitutes a small and highly concentrated set of long-term asset-backed financing deals. This structure strongly limits the possibility to actively manage the portfolio towards a target. As anticipated in previous sections, and consistent with our portfolio alignment materiality, aviation therefore moves from an alignment target to monitoring. This decision follows our annual portfolio alignment materiality assessment, which is based on dynamic criteria including financed emissions, exposure, portfolio management capacity and strategic relevance. Given the sector’s evolving materiality and its strong dependency on external policy and technology developments, monitoring now provides a more appropriate management approach. Annual report 202564 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | In the aviation sector, we focus on commercial passenger airlines, covering both general purpose lending and aircraft-specific financing. For dedicated purpose lending, we assess each transaction at the individual aircraft level. This scope reflects the structure of our exposure and aligns with the boundaries defined for this sector in our broader transition strategy. Recent years have brought increasing concerns about the sector’s ability to meet its current 2030 targets, a trend now reflected in the IEA’s updated Net Zero by 2050 Scenario. The expectation on emissions reductions in the sector has weakened due to the observed trends for sustainable aviation fuel– high costs and availability issues - as well as the slow adoption of efficiency measures such as fleet renewal or use of lighter materials. These industry dynamics underline the sector’s heavy dependence on policy support and technological breakthroughs. The emission intensity of our aviation portfolio continued to improve, decreasing from 83 gCO₂e/RPK in 2023 to 78 gCO₂e/RPK. However, the pace of alignment and the levers available to financial institutions remain highly contingent on the sector’s technological and regulatory trajectory. #### Agriculture in Brazil Brazil’s agriculture sector accounts for a significant percentage of its gross domestic product (GDP). Robust measurement of financed emissions in this sector is challenging because agriculture spans a long, complex value chain with multiple sources, types and volumes of GHG emissions. Emission profiles vary by commodity, farming practice, geography, productivity, and other factors. Since 2022, we have worked with WayCarbon to estimate our financed emissions in agribusiness using methodologies aligned with widely used standards — PCAF and the GHG Protocol Agriculture Guidance — and adapted them to the situation in Brazil using data from Brazil’s Fourth National GHG Inventory. Estimations focus on retail credit exposures that support primary production and cover scope 1 and 2 emissions, as well as emissions related to land-use change (LUC), where we perform farm-by-farm assessments that consider georeferenced farm polygons available in Brazil’s Rural Environmental Registry (Cadastro Ambiental Rural) and draw on 20-year historical data as by GHG Protocol. These sources are characteristic of agriculture and represent a material share of emissions across the agribusiness value chain. Our initial estimation covered over 20 commodities. As the methodology evolved, a subsector materiality assessment aligned with UNEP FI guidance and PCAF criteria led us to prioritise beef cattle, soy and corn, which account for most financed emissions and financial exposure. For comparability, the 2023 results were recalculated to reflect the updated portfolio coverage used in the 2024 assessment. Santander Brasil’s credit exposure to farms engaged in primary production of soy, corn, and beef cattle amounted to EUR 2.46 billion in 2024. We estimate financed emissions from this portfolio total 7.12 million tCO₂e/year, compared to 8.41 million in 2023, representing a reduction of approximately 28%. This decrease mainly reflects a shift in portfolio composition toward a higher share of soy cultivation. Regarding the emissions breakdown for 2024, we estimate 75.7% from land management (vs. 78.4% in 2023), 24.0% from land-use change (LUC) (vs. 21.4% in 2023), and less than 1% from energy consumption, a proportion that remained stable. Accordingly, there was a decline in the share of land-management-related emissions and an increase in the share associated with LUC relative to 2023. The reduction in absolute financed emissions occurred because the decline in land-management emissions was proportionally larger, influenced primarily by lower exposure to higher-emitting activities, especially beef cattle. These developments occurred organically and may evolve over time, affecting the distribution of emissions across categories. In 2024 data, the PCAF data-quality score for soy, corn, and beef-cattle operations remained at 3.00. In Brazil, land-use change — especially linked to illegal deforestation — accounts for nearly half of nationwide emissions. Against this backdrop, we have implemented safeguards to prevent our lending from being linked to illicit practices and made it our primary alignment lever. Since 2019, before granting loans we verify land ownership or lease status and operate a satellite- based monitoring system that tracks all financed or collateral properties throughout the life of the facility, monitoring early indicators of illegal deforestation prior to official embargoes. Upon a confirmed breach of environmental law, we may exercise contractual rights to accelerate repayment and implement further actions to prevent our portfolio from being associated with illegal deforestation. | | | | --- | --- | | | | | | For more details on our monitoring practices to avoid financing illegal deforestation, see Risk Management – [Farmers and ranchers](#i6ecb2a0d58d04b53bfadfa2a833efaa7_124) | Though we have identified additional alignment levers — such as pasture restoration, intensification of livestock systems, integrated production systems and genetic improvement —, broader adoption depends on farmer incentives and public policy support. Practices that improve productivity and profitability (such as no-till farming) are already widely adopted in the field and have strong potential for further scale-up. Santander has not set alignment targets for agricultural commodities due to structural dependencies: (1) Data and method fragmentation — limited farm-level data, no farmer-level GHG measurement, absence of a measurement, reporting and verification (MRV) standard, and no agreed accounting for agricultural carbon removals; (2) Portfolio dynamics —  annual turnover involving over 50% of financed farms and financial operations, combined with seasonal, short-tenor lending, which undermine multi-year predictability.; and (3) Regulatory and economic landscape — earmarking for low-carbon credit lines under public financing remains limited, and regulatory instruments are still fragmented. The Emissions Trading System does not yet cover primary agricultural production due to the same data and methodological limitations. The National Mitigation Plan for Agriculture and Livestock is at an early stage of implementation, with scope to further specify data sets, targets and delivery mechanisms. Meanwhile, we are contributing to key enablers to accelerate the transition toward low-carbon agriculture, including: • actively contributing to, and participating in, federal government programmes aimed at financing land restoration and sustainable production systems, such as Eco Invest II, while supporting customers to build a low-carbon agriculture future through green finance solutions and innovative financial transactions; • working with local and international partners to foster agricultural data availability and methodologies, develop Annual report 202565 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | commodity-specific emission pathways, and engage in the development of Brazil’s national mitigation plan for agriculture and livestock; and • offering tailored financial solutions across the agribusiness chain to support the transition to a low-carbon economy and sustainable growth. Commercial real estate and mortgages in Spain, UK and #### Portugal In 2025, we continued to make headway with our CRE and mortgage portfolio alignment analysis in our core markets where enough information is available: Portugal, Spain and the UK. These sectors are highly dependent on regulatory measures (particularly regarding renovation), energy regulation, the availability of energy performance certificates (EPC), and volatile data estimates. Over half of this sector's emissions come from scope 2. This reaffirms dependence on the alignment of the electricity mix, which consumers in the real estate sector have little influence over. The alignment of these portfolios largely hinges on developments in public policy, such as progress in achieving government plans, including the roll-out of renewable energy in the domestic energy mix and consistency between real estate sector alignment plans and national plans. We use the PCAF methodology in every market, taking the Carbon Risk Real Estate Monitor Initiative emissions factors to calculate financed emissions. We combine actual EPC data with estimates based on internal models, which consider multiple known property characteristics, where necessary, in line with market best practices. We also continue to run initiatives to enhance data quality; broaden EPC coverage to reduce data volatility; make calculations more automated; and support our customers in boosting the energy efficiency of their assets through financial solutions, partnerships, and technical advisory services. Spain Santander España has been monitoring financed emissions in residential mortgages since 2021 and in CRE since 2022. The main challenge continues to be a lack of available data, as 80% of Spain’s properties do not have an EPC and access to actual energy consumption figures is limited, which can skew results. Since 2020, we have been working to overcome the non-existence of a national EPC register and scarce availability of data by: • requesting an EPC as part of new loan applications; • purchasing databases from an external provider with all available registers in Spain; and • estimating non-existent EPCs using an internal, machine learning model that includes such variables as year of construction, climate zone, building type and property register information. This enables us to obtain actual or estimate EPCs for the entire real estate portfolio. As at December 2024, our residential mortgage portfolio, which amounts to EUR 59.37 billion, had an emissions intensity of 21.03 kgCO₂e/m² and a PCAF score of 4.0. Our CRE portfolio, with a scope of EUR 7.18  bn, had an emissions intensity of 21.58 kgCO₂e/m² and a PCAF Score of 4.1. Local and global governance forums, including the Santander España board of directors, regularly monitor these results. In Spain, the 2023-2030 Integrated National Energy and Climate Plan, the Long-Term Strategy for Energy Renovation in the Building Sector, and the future National Building Renovation Plan should drive private investment and stimulate demand for energy renovation. Moreover, EPC are currently under review to achieve greater accuracy and harmonization at European level in line with the EU Directive on energy efficiency in buildings. At Santander España, we work to help our customers align their assets (whether residential or commercial), while advocating for public policy that support this transition. Santander runs an active advocacy agenda with Spain’s Ministry for the Ecological Transition and the Demographic Challenge and Ministry of Housing and Urban Agenda, as well as with European bodies to promote greater access to real data, EPC with progressive updates, a centralized register, and possible financial and non-financial property renovation support instruments to ensure a fair transition. Santander promotes the energy efficiency of homes under our residential portfolio through: • special Banking Environment Initiative (BEI) and European Investment Fund (EIF) lines of credit with lower interest rates for the most energy efficient homes; • consumer loans with special terms and conditions for energy- related renovation that includes the installation of solar panels, heating and cooling systems, insulation and other items; • state-backed loans for owners associations to renovate entire buildings; and • an energy efficiency simulator for customers and non-customers to estimate the work required to renovate their home, including projected heating bill savings and emissions avoided. For our CRE portfolio, which is less granular, we performed these actions individually with customers: • Agreement with CBRE to advise institutional and commercial customers on aligning and enhancing the energy efficiency of their buildings. • Assistance and support in managing the energy saving certificate system (CAEs) by entering into agreements with intermediaries, which enables the recovery of part of the investment made in energy efficiency measures. • Agreements to provide sustainability consulting, including energy analysis and efficiency measures for small businesses to reduce costs, improve competitiveness, and cut emissions. • In 2025, Santander España began to market the state-backed MRR Verde line of credit to support the green transition with special terms and conditions and to make buildings more energy efficient through renovation. • EIF InvestUE line of credit, with a maximum guarantee of 70% (80% in the case of just transition or cohesion territories), where one of the eligibility criteria is the renovation or refurbishment of buildings in accordance with energy efficiency standards. Annual report 202566 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | • New EIB MidCap line of credit, with a guarantee of 50%, where one of the eligibility criteria is the renovation or refurbishment of buildings in accordance with energy efficiency standards. United Kingdom The emissions intensity of the UK mortgage portfolio as at 31 December 2024 was 20.70 kgCO₂e/m², an improvement of 0.16 kgCO₂e/m² vs. the previous year, due to enhanced data coverage and a small improvement in EPC ratings across financed properties. For the commercial real estate portfolio, emissions intensity was 22.00 kgCO₂e/m² , which reveals continued challenges in obtaining complete asset-level EPC data. The PCAF data quality score was 3.2 for mortgages and 3.9 for commercial real estate, with portfolio coverage of approximately EUR 201.45 billion for mortgages and EUR 10.34 billion for commercial real estate. We remain reliant on proxy data, which the overall PCAF score reflects. Enhancing data quality and automating emissions calculations remain key priorities. The UK Government plays an essential role in shaping the pace of the green transition. Financial incentives can make retrofitting more affordable for homeowners and encourage wider uptake. We were pleased to see the Government’s Warmer Homes Plan published in January 2026. Going forward, we will continue to support the Government to create the stability and momentum needed to accelerate progress towards a more energy-efficient housing market. In 2025, we deepened our research into the barriers to retrofitting homes, updated our Tomorrow’s Homes report from 2024, with a new green finance research into energy-efficiency financing opportunities. According to the report, 53% of respondents consider energy efficiency important (up from 37%). Nonetheless, barriers such as a lack of awareness, initial costs and few qualified professionals, remain. Our pilot projects taught us that partnerships for residential property renovation are viable from a commercial standpoint. Insights from this work are shaping the design of new customer propositions and our approach to public policy engagement in relation to the UK housing transition.  In particular, we welcome the increase in funding for the government's Warm Homes Plan and await further details about its launch. Moreover, we enhanced our internal analysis by integrating new elements on climate change, nature and emissions offsetting, recognizing their importance in supporting long-term resilience and the wider impacts of our business model. This builds on our first assessment of nature and biodiversity dependencies within the mortgage portfolio, which analysed natural capital dependencies and biodiversity impacts across the UK housing market. To support our Corporate and Commercial Banking customers further, we established a new partnership to provide tailored sustainability tools and expert advice. This initiative enables them to identify and implement cost-effective measures to reduce energy, water and waste consumption, boost operational efficiency, and lower carbon emissions. Portugal Santander Portugal has a real estate portfolio coverage of over EUR 23.31 billion in mortgages and EUR 1.27 billion in CRE. Following the methodology indicated above, emissions intensity as at 31 December 2024 was 13.70 kgCO₂e/m² and 48.87 kgCO₂e/m², respectively. Santander Portugal embeds the elements of the Roadmap for Carbon Neutrality 2050 defined by the Portuguese government into its practices and promotes alignment with Portugal’s climate targets through: • the alignment of its financed emissions reduction strategy with public policy guidelines, supporting assessment and planning processes; • climate transition risk assessment, embedding climate and environmental factors into risk management, adopting a risk- based approach and considering these factors throughout the management cycle; • the offering of products and services that support the transition, promoting investment in renewable energy, energy efficiency and other sustainable measures; and Santander Portugal is developing sustainable finance solutions to enhance the support provided to customers in reducing their emissions. Our focus goes beyond financing new buildings. Through a range of initiatives, we support homeowners across different EPC ratings in improving their energy performance. We also engage with companies, deepening our understanding and strengthening our capacity to support their transition. These initiatives are delivered under our sustainable offerings and partnerships and include: • securitization with the EIB to promote energy-efficient housing in Portugal; with the benefit of a discounted rate; • European Investment Fund and Banco de Fomento credit lines to support the financing of sustainable investments for SMEs; • consumer loans with preferential terms and conditions for energy-related renovations, including the installation of solar panels, heating and cooling systems, insulation and other energy efficiency improvements; • the SIBS ESG Ecosystem, enabling the sharing of ESG-related information between companies and credit institutions to obtain non-financial data supporting risk management; and • the EIB Green Gateway workshop, in partnership with the European Investment Bank, focused in part on understanding the retrofitting market to help build effective sustainable finance solutions. #### 2.4.3 Measuring and assessing other portfolios We are expanding the scope of the portfolios measured to understand and assess the alignment dynamics of each one of these portfolios maintaining our focus on our sectorial climate approach. There is a clear lack of available data to measure financed emissions, especially in retail and commercial segments and in some regions. Some of the information needed to assess the level of emissions and potential alignment of our customers properly is either not being measured or not available for our customers. For instance, energy performance certificates of real estate assets in Latin America and emissions calculated and reported by corporates and, in particular, SMEs, etc. We’re working on reducing these data gaps to measure financed emissions in a 26 Scope 1 reduction ambition vs. 2020: 7% by 2030; scope 2 reduction ambition: 91%. For more details on our targets, see section [SN 7.1  'Green transition'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_244). Annual report 202567 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | way that can be useful towards steering the alignment of other key climate portfolios and to try to implement alignment levers in our financed portfolios. #### 2.4.4 Santander Asset Management’s (SAM) #### alignment strategy and approach SAM’s climate objective, framed within its fiduciary duty, focuses on identifying, assessing and managing the risks and opportunities arising from climate change and the energy transition. Our strategy is centred on supporting our customers in their transition and alignment processes, taking into account the different jurisdictional frameworks and offering investment solutions aligned with their preferences. To this end, we integrate climate considerations into our investment processes, stewardship activities and risk management, mobilising capital towards an orderly transition and contributing to long-term value creation. In light of the evolving regulatory and political environment, SAM is updating its approach and internal criteria for company alignment analysis, as well as its scope and roadmap, aiming for a pragmatic and credible approach. #### 2.4.5 Our environmental footprint In this section we cover how Santander manages the following IRO: | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | I+ | Contribution to reducing the Group’s scope 1 and 2 greenhouse gas emissions. | | | | | | | Regarding our own operations, we disclose and manage our direct and indirect emissions (scope 1, 2 and 3) since 2011, as well as other climate-relevant metrics such as energy consumption, and the compensation of our scope 1 and scope 2 emissions. Our strategy to lessen the environmental impact of our operations involves reducing our CO2e emissions and offsetting those we're unable to reduce through credits beyond our value chain; reducing and handling supplies and waste responsibly; and raising employees’ and other stakeholders’ awareness of environmental issues. We’ve been measuring our environmental footprint since 2001. Since 2011, our energy efficiency and sustainability initiatives have helped us cut our scope 1 and 2 emissions by 88%. We continue to follow the ambition of achieving a 72 % reduction in emissions 26 by 2030 from our own operations compared to 2020 on a like-for-like basis and 88% compared to 2011. These targets are managed with the following levers: | | | | | | --- | --- | --- | --- | | | | | | | Operational emissions reduction levers 2024-2030 | | | | | Alignment lever | Scope 1 (tCO2e) | Scope 2 location- based (tCO 2e) | Scope 2 market- based (tCO 2e) | | i.  Renewable energy and self-production measures | | 2,000 | 9,000 | | ii. Energy efficiency and consumption reduction measures | 1,600 | 20,000 | 3,000 | | iii. Direct emissions reduction measure | 600 | | | | Total | 2,200 | 22,000 | 12,000 | The balance of projects undertaken in 2024 and 2025 shows a trend that closely aligns with meeting these targets, with the following theoretical emission reductions already achieved or in progress upon publication date of this report: | | | | | | --- | --- | --- | --- | | | | | | | Estimation of operational emissions reductions in 2024-2025 | | | | | Alignment lever | Scope 1 (tCO2e) | Scope 2 location- based (tCO 2e) | Scope 2 market- based (tCO 2e) | | i.  Renewable energy and self-production measures | 0 | 1,807 | 7,580 | | ii. Energy efficiency and consumption reduction measures | 1,870 | 8,492 | 1,731 | | iii. Direct emissions reduction measure | 2,065 | -501 A | 88 | | Total | 3,935 | 9,799 | 9,399 | A.The increase in Scope 2 emissions is due to the replacement of natural gas with electric systems, whose reduction in Scope 1 is even greater, resulting in a net decrease in emissions. The cumulative execution of these efficiency projects in the first year accounts for total investment of over EUR 33 million in buildings and offices, and external consumption efficiency of 52 GWh of electricity (6% compared to 2024), 1,900 tonnes of natural gas (23% compared to 2024), and 90,000 GJ of district heating, which is widely used in many of Grupo Santander’s central European markets. In 2025 for the first time, Grupo Santander has achieved 100% renewable electricity in its 10 core markets to meet the target set in 2020, with 2.2% of that energy self-generated in our own buildings (16 GW). Among the most salient projects completed in 2025 is the installation of over 9 MW of solar capacity at the Santander Group City in Spain, which covers 100% of electricity consumption across its nine office buildings that house some 8,000 employees. Annual report 202568 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | ![PanelesSolares.jpg]() Similarly, another key lever the Group is promoting across its geographies is the progressive reduction of natural gas use in buildings and offices, replacing it with heat pumps, a more efficient and modern technology. Branch networks such as Spain and Argentina will cease using natural gas entirely in the short term. Other notable environmental projects include the achievement of more ISO 14001 and ISO 50001 certifications. Particularly noteworthy is the achievement, for the first time, of ISO 50001 certification at the offices of Santander Consumer AG in Germany. Countries such as the United Kingdom and Argentina also have part of their networks certified under ISO 50001, including among these branches the Ushuaia office (Argentina), the Group’s southernmost branch. At year-end, 42% of Santander employees were working in buildings certified under environmental standards (ISO, LEED, BREEAM, green certifications). #### Scope 3 The assessment we conducted to determine the materiality of indirect GHG emissions (scope 3) found that the only material category under this scope was category 3.15 (financed emissions), with a weighting of 99% of the total. The supply-chain-related categories listed below are considered material based on their volume, management capacity and, therefore, potential to reduce them (see SN 7 for their emissions data). Our progress in numbers: • 3.1 Purchased goods and services. • 3.2 Capital goods. • 3.4 Upstream transportation and distribution. • 3.6 Business travel. • 3.7 Employee commuting. • 3.9 Downstream transportation and distribution. #### 2.5 Further actions and enablers #### 2.5.1 Strategy for engagement with other key #### stakeholders While banks are enablers of the transition, they should not be considered its sole drivers. Favourable conditions must be in place for banks to support their customers’ transition. Our aim is to contribute constructively to the transition debate by providing our expertise and so that policy evolves to support sustainable growth. The overarching regulatory and 'finance-centric' approach to the net zero transition that has been taken to date must be reconsidered; while it should point to the financial sector as an enabler, it cannot be the sole driver of investment towards a low-carbon transition. Moreover, banks’ support in achieving the transition of high- emitting companies to cleaner production models must be seen as a priority. Though this could mean that our financed emissions increase during transition, it does not indicate misalignment, but rather our commitment to the transition — we’re helping our customers transform; we’re not divesting from them or from the economies we serve. There is a key opportunity to put in place the appropriate levers to facilitate the global transition. This is the approach that the European Commission has adopted through the Omnibus package, which aims to simplify the regulatory framework to embed a competitiveness objective and make regulation compatible with the sustainability framework. The review of the CSRD, the Corporate Sustainability Due Diligence Directive (CSDDD) and the taxonomy is a clear illustration of how this debate has turned into concrete measures. As Mario Draghi wrote in his report, sustainability objectives need industrial policy that enables their achievement.  Reducing complexity and regulatory burden will improve framework implementation and strengthen competitiveness and business growth. A framework that supports the transition should not demand higher capital requirements linked to ESG risks since Pillar I already considers their impact. Increasing capital requirements would be counter-productive and could jeopardize the transition, especially in emerging economies and sectors that need to transition. | | | | --- | --- | | | | | | For more details on our strategy for engagement with authorities, supervisors, NGOs, etc.  see [1.3 'Stakeholder engagement'.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_64) | #### Partnerships and sector working groups Partnerships with businesses and governments can help us share best practice and accelerate progress. Grupo Santander takes part in organizations, alliances and working groups. We engage with international and local stakeholders (sector associations, think tanks, universities, peers and others) to make headway with global and company goals, in line with SDG 17 (Partnerships for the goals). We also engage with leading organizations to enhance banks’ stewardship of climate change and nature, such as World Economic Forum, UNEP FI, Banking Environment Initiative, Partnership for Carbon Accounting Financials (PCAF), TNFD Forum, Energy Efficiency Financing Coalition and Carbon Measures. Annual report 202569 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 2.5.2 Governance & policies #### Roles, responsibilities, and remuneration Climate change and transition oversight The management and oversight bodies described in sustainability note 2 approved our transition plan, as part of this report. Also, the responsible banking, sustainability and cultural committee (RBSCC) reviewed our portfolio alignment targets, which the board of directors then approved. These bodies also receive regular updates on progress with our targets and our climate agenda. Other bodies such as the audit committee, the financial accounting and reporting committee, the management committee and the sustainability committee take part in overseeing sustainability disclosures. The risk control committee and the risks supervision commission review risk appetite proposals before their approval. | | | | --- | --- | | | | | | For more details on our ESG governance model, see note [SN 2.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_223) ['Sustainability governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_223) '. | Climate in incentive schemes Since 2020, the Group’s variable pay scheme and, since 2022, our long-term incentives, have considered green finance and the progress made with climate and other sustainability targets. In 2025, the sustainability metrics consistent with our objectives for long-term incentives for senior executives for the 2025–27 period were approved at the Annual General Meeting, with a weighting of 20%). 50% of the sustainability scorecard is linked to supporting the transition to a low-carbon economy through green financing raised and facilitated by the Group, including improving climate data, progress on actions to align our portfolios, enhance sustainable product offering to address market needs, further embed climate and environmental risk, and aim to support policy action and market developments. | | | | --- | --- | | | | | | For more details on the integration of climate-related performance in incentive schemes, see section [1.4 'Sustainability governance'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_70). | Main areas involved in implementing our climate change strategy In 2025 we continued to embed climate management in business as usual across different areas such as business, risk and sustainability. For instance, CIB has a team that works on portfolio alignment with the relevant governance, while Wealth continued to reinforce and update the working groups and policies that oversee and coordinate its SRI strategy, described in section 3.2.2 'Responsible investment and social finance'. SCF has several working groups that meet monthly to address sustainability projects and matters, and quarterly to review progress with the sustainability agenda. Beyond these global businesses, numerous local units engage in a process that the Group Sustainability area coordinates. The aim is to make headway with the alignment agenda, promote the sharing of knowledge and expertise, and seek synergy in the design of reliable transition plans. These local units comply with fair access laws and other relevant local laws and regulations. Other corporate-level initiatives and groups that support governance meet regularly to implement our climate change agenda and report on regulation updates. For instance, our sustainability public policy working group updates on upcoming climate and sustainability regulation; a regulatory radar governance working group meets quarterly to monitor the status of implementation of sustainability regulations; an environmental footprint working group measures our footprint and reviews ways to reduce it; and a sustainable bonds working group oversees the sustainable bonds that the Group and its subsidiaries issue. Sustainability Reporting & Internal Control The Internal Control and Finance Execution  team, in the Financial Accounting & Management Control division oversees the disclosure, supervision and control of the ESG information the Group uses to meet regulatory requirements and stakeholder expectations. In 2025, the team worked, together with each responsible area, to strengthen the process for gathering information and the governance and control of disclosed information. The emission reduction objectives of our own operations emissions (scopes 1 & 2) have been reviewed in the Group’s Sustainability Reporting Forum. ESG classification meetings As part of the assessment and tagging of transactions under sustainability criteria, we hold global and local classification meetings led by the risk function and/or sustainable business. For more details, see 'ESG classification meetings' in section [2.3.2 'Risk](#i6ecb2a0d58d04b53bfadfa2a833efaa7_115) [management cycle'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_115). Internal Audit The internal audit function reviews climate risk, for more details, see note [SN 2. 'Sustainability governance'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_223). Policies and guidance The Group has different frameworks and policies that establish the principles, processes and responsibilities for managing ESG criteria throughout Santander Group. The Group establishes ESG policies, procedures and guidelines adapted to local regulations and applied to all units. We systematically review the scope of the policies to adopt ESG standards in accordance with international best practices. The main ones are the E&S risk management policy and the Responsible banking and sustainability policy. | | | | --- | --- | | | | | | For more details on our ESG governance model see note [SN 2.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_223) [Sustainability governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_223) '. | | | | | --- | --- | | | | | | For more details on our E&S risk management policy, see section 3.2.3 '[Management of environmental and social aspects](#i6ecb2a0d58d04b53bfadfa2a833efaa7_181)'. | #### Climate training and skills development Particularly in climate, we have developed different initiatives to enhance capabilities, beyond the training on sustainability detailed in section [3.3.1 'Talent and skills development'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_160). ![]() 27 For more information on employee dialogue, see section [1.3. 'Stakeholder engagement'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_64) and  [3.1.4. 'Employee feedback and experience'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_169). 28 For more information about our culture, see section  4[.1.' Corporate culture'.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_202) 29 The following are not included as Employees: a) Interns; b) Salaried employees on leave or career breaks whose employment contracts are suspended under the respective local employment regulations; c) Non-salaried individuals with temporary employment contracts through an external provider (NACE78) performing similar tasks to in-house staff, who do not receive salaries or benefits paid by Santander, nor self-employed workers; d) Other workers engaged in different tasks within the value chain under service contracts. Additional information on the characteristics and distribution of our employees is provided in the 'Sustainability Notes'. 30 For more information on staff cost that supports our employee strategy, [see Note 46.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1189) Annual report 202570 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 3. Supporting employees, #### communities and customers #### (Social information) #### 3.1 Our employees We attract and retain the best talent by 27 : → offering an attractive employee value proposition that offers real opportunities to grow and harness potential; innovative ways of working; projects that inspire; and a shared culture; → providing optimal conditions that safeguard employee health and well-being, with fair and competitive remuneration and initiatives that allow a better work-life balance; and → promoting an inclusive and meritocratic culture 28 where everyone feels valued. #### 3.1.1 Talent and skills development This section outlines how we manage the following IRO: | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | I+ | Promotion of continuous career development and personal growth through learning and development programmes. | | | | | | | For the purpose of this annual report and in line with previous years, Santander defines employees as people who have an employment contract with any of the companies that comprise our consolidated group and whose contract remains in force at the time of publication. 29 | | | | | --- | --- | --- | | | | | | 198,403 employees | | Europe 42.2% | | | North America 20.1% | | | South America 37.7% | Attracting, managing and developing talent is addressed through initiatives that support employee capabilities and professional growth in line with the Group’s strategic and operational needs. 30 i. Attracting talent Our talent attraction strategy focuses on positioning ourselves as an employer of choice. In 2025, we welcomed 27,872 new employees to the Group. We launched several automation and artificial intelligence projects as part of our talent attraction and recruiting programmes. They aim to boost operational efficiency and optimize the candidate experience, while reducing human bias and basing pre-screening primarily on skills and career experience. We also launched new editions of three editions of our Graduates global programmes through which over 330 early-career professionals joined our global businesses: Corporate & Investment Banking, Wealth Management & Insurance, and Retail & Commercial Banking. These initiatives seek to attract and develop talent globally, highlight the Group’s digital transformation, foster entry into the labour market through internship and first-employment programmes for graduates, and strengthen our employee value proposition. ii. Talent management We offer programmes and experiences for our employees’ personal and career development: • Development programmes adapted to different levels and businesses within the organization. • Temporary and permanent domestic and international mobility and functional experiences. • Training based on lifelong learning. 31 YourVoice response to the question:  'Overall, I am satisfied with the learning experiences Santander makes available to me (if not, please tell us how we could improve).' Annual report 202571 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Developing talent potential Our potential review model enables us to delve deep into the skills, expertise and aspirations of some 110,756  employees. It also means we can draw up career development plans based on each person’s needs. We developed a leadership profile and a common leadership assessment methodology to foster transformational and collaborative leadership that aligns with our strategy; and to gain deep, objective and comparable knowledge of our executives. This also enables us to support their development and make key decisions for the Group. #### Mobility matters Our global international mobility policy, which the human resources committee approved (by decision of the Group board), is an essential employee development tool, with the objective of contributing to the  development of talent in the Group; strengthen succession plans; attract external talent; encourage a global mentality; facilitate international movement to satisfy business needs; and share — in a transparent manner — mobility standards with our workforce. iii. Learning and development At Santander, developing our people’s capabilities is key to executing our strategy and accelerating the transformation. Our global learning and development policy establishes  the framework governing all our actions in this area. Our goal is to ensure that all employees are future-ready by providing access to high-quality, relevant and personalised learning experiences, while fostering a culture of accountability and continuous learning. During 2025, our digital learning ecosystem, Dojo, continued to grow at a global level. That year 176,010 employees accessed our global learning systems, with content aligned to their profiles, roles and development needs. Powered by artificial intelligence, Dojo enables each employee to progress at their own pace in developing critical skills, promoting individual growth, and supporting the Group’s strategic priorities. Against this backdrop during 2025, we placed a special focus on strengthening training in data and artificial intelligence, launching new learning pathways designed for different profiles and areas across the Group. These initiatives combine digital modules, in- person workshops, masterclasses, and experimentation spaces such as hackathons, bringing artificial intelligence applications closer to the day-to-day work of our teams. Through this approach, we promote the responsible use of technology and enable our professionals to develop the capabilities needed to seize the opportunities offered by innovation in the financial sector. #### Leadership and agile transformation We strengthened our leadership development initiatives with tailored experiences for all levels. Elevate, our global platform for leaders, continues to be a space for connection, inspiration and strategic learning. We launched new experiences aimed at all Group managers, which combine digital learning, peer workshops and even an AI-based coach to help turn feedback into a daily leadership habit. Moreover, we continued to build agile capabilities through learning pathways, bootcamps and workshops designed to promote new ways of working, facilitate agile decision-making, and foster a culture of continuous improvement across the organization. #### Future-ready talent In 2025, 170,360 employees received training in technology, banking, human and other key skills, which are essential for a sustainable, diverse and high-performing organization. In recognition of these achievements, more than 17,000  employees obtained certificates that formally validate the skills they acquired and open up new professional development opportunities beyond their current roles. In line with our global learning strategy, we aim to maintain a balance between scalability and adaptation to the specific needs of each profile and market. We embed common frameworks with adaptable solutions, foster a culture of continuous learning, and promote the translation of acquired knowledge into real impact. #### Responsible banking skills Mandatory training continues to prove a key lever for strengthening our corporate culture and ensuring regulatory compliance in every market. In 2025, our employees completed training in 13 topics that the global compliance committee approved, including sustainability, Code of Conduct, cybersecurity, financial crime prevention, data protection, and inclusion. Each subsidiary supplemented this training with content tailored to local legislation and business needs. We also continue to make progress in sustainability-related training. Our Retail & Commercial Banking teams took part in sustainable finance learning pathways that country-specific modules complemented. Moreover, employees completed training on the practical integration of ESG principles in their daily activities. The board of directors received specific training on recent regulatory developments in sustainability, including the implementation of the Corporate Sustainability Reporting Directive (CSRD) and the European Banking Authority (EBA) guidelines on the management of ESG risks. We continued to promote our ESG Talks, sessions led by internal experts that strengthen cross-functional knowledge on sustainability. In addition, we expanded our training catalogue to include content on climate risks, inclusive banking, health, wellbeing and ethical leadership. Additionally, on 5 June 2025, we held Sustainability Day at Banco Santander, coinciding with World Environment Day, with both global and local activities. We will continue to invest in developing our employees’ skills, curiosity and growth so they can lead Santander’s transformation and contribute to a more responsible, sustainable and future-ready organization. Employee rating on training 8.6 #### (out of 10) Learning: applicability and skills development 31 ![]() 32 For more details on absenteeism and health, see the ['Sustainability notes'.](#i05c20213969b40b8b21361816c7d4b45_1416) 33 Adherence to global policies is monitored in 18 of the countries with the largest number of employees, which  account for 98.5% of  Santander’s Group workforce. 34 YourVoice response to the question:  'I am satisfied with the benefits and services available at Santander to take care of my health and well-being (if not, please tell us how we could improve).' Annual report 202572 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 3.1.2 Working conditions In this section we cover how Santander manages these IROs: | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | I+ | Promote the health, well-being and security of our employees in a safe and inclusive workplace, while supporting work–life balance through policies that foster a healthy balance between professional and personal life. | | | | | | | | | I- | Harm employees through unlawful discriminatory conduct, inadequate working conditions, harassment or corruption. | | | | | | | | | I+ | Promotion of the general well-being of employees and provide appropriate remuneration under equal conditions based on merit and market rates. | | | | | | | | | R | Potential risk of conflict with employees based on the infringement of their rights. | | | | | | | i. Employee health and well-being Our support for  employees’ health is embedded in our culture and corporate strategy, under which our people and senior managers work together to protect and promote each other’s health, safety and well-being. Based on our strategy, we: • implemented safety and prevention systems; • launched proactive initiatives to boost the overall well-being of employees; • fostered a safe and supportive working environment when it comes to health; and • offered flexible work alternatives to enhance work-life balance. Our general health, safety and well-being policy aims to promote a healthy lifestyle and create long-term value for employees and society. It applies to all our subsidiaries and follows local laws in the markets where we operate to the letter. #### Occupational health 32 The sector-level and company collective agreements that we sign up to consider employee health and occupational risk prevention. We offer regular medical check-ups and tests after extended absences in every market where we operate. We also work with local public health authorities, employees’ legal representatives and occupational risk insurers. Employees in our main countries are covered under occupational health and safety systems and policies in compliance with local risk prevention standards and best practices. 33 We revise our occupational risk prevention plans with employees' councils through: • regular assessments of risk factors and preventative measures to handle or mitigate them; • prevention through design in new workspaces and tools; • procedures regarding safe and quality working conditions and certifications; • emergency and evacuation plans to protect employees, customers, suppliers and visitors to our facilities, including emergency response; first aid training; • measures to detect and minimize risk due to postural hygiene; • accident investigation to avoid reoccurrence; employee safety representatives actively participate in health and safety committees. #### Well-being We aim to raise awareness about health and well-being through our global BeHealthy programme, which celebrated its ninth year in 2025. ![BeHealthy.jpg]() In 2025, we updated this programme to align it with best practices in health and well-being; and with the concept of circular health. The programme is now structured around four pillars: physical, mental, social and financial well-being. Over 50,000 employees took part in local BeHealthy initiatives across the Group during the year. Employee rating on health 8.6 #### (out of 10) Satisfaction with the benefits and services to support employees’ health and well-being. 34 In April, we held BeHealthy Day (to coincide with World Health Day), where we brought health and well-being to the focus of the Group worldwide through in-person and virtual events. We also joined global initiatives run by the World Health Organization, including World Mental Health Day, Women’s Health Month, and World Heart Day. These initiatives gave our employees access to mental health and emotional well-being support services, as well as to sports centres, nutrition and mental health apps, specialist health and preventative care, and other free or discounted services. In 2025, we also launched the REACT programme, a continuation of the PESA study, which provided 8,000 employees and their families with the opportunity to participate in a leading international research study on cardiovascular disease prevention. This study is conducted in collaboration with Spain’s National Centre for Cardiovascular Research. 35 In total 9,834 unique employees (4.8% of Santander's total workforce) exercised their right to any family-related leave in 2025. By gender, this accounted for 5.92% of our women employees and 3.62%  of our male employees. 36 YourVoice response to the question:  'I am satisfied with the flexible work options available to me'. 37 In some countries, leave is shared between both parents, in accordance with the applicable legislation. 38 See our commitment to human rights (which is included as well in our Responsible Banking and Sustainability policy) and international mechanisms of application in [section](#i9bf32a2b3b464f0e8a2ce7f7b7f2f8ae_5052) [1.4.2. 'Human rights due diligence'.](#i9bf32a2b3b464f0e8a2ce7f7b7f2f8ae_5052) 39 These rules are monitored in 18 countries, which account for 98% of employees  where  trade union representation may exist in accordance with local rules (by company, location or individual membership). In those countries except for the UK, where data on trade union membership cannot be disclosed, 65% of our employees work in establishments with union representation. 40 For more details on our employees provisions, see [Note 25](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1096) of this report. Annual report 202573 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Work-life balance Santander promotes employee work-life balance. Employees across all companies are entitled to parental, adoption and newborn care leave, and leave to care for family members is also widely available. In 2025, 8,208 employees took paternity, maternity or adoption leave and 1,778 took other family care- related leave. 35 In recent years, in line with digital transformation and societal change, Santander has maintained policies and arrangements that support flexi-work for its employees. Currently, across our ten main markets, a high percentage of employees in central services can now adapt their working hours and location to fit with their personal circumstances. This includes working remotely or adjusting their entry and exit times. These measures are continuously reviewed at team level, taking into account customer needs, productivity, and employee engagement and experience. Employee rating on flexibility 8.5 #### (out of 10) Satisfaction with flexibility at Santander 36 #### Social protection At Santander we offer our employees protection against a loss of income due to sickness, accidents at work, acquired disability and parental leave. Santander employees are provided with public or private coverage against loss of income resulting from illness or acquired disability, in accordance with, and at least meeting, applicable local legal requirements. On top of public health services, we offer additional private cover in our core markets, under which employees usually receive full pay during periods of illness. Because employee care and respect for their rights are important to Santander, 98% of our workforce have a permanent contract. In every market, employees have coverage against loss of income due to unemployment, in compliance with applicable local laws and regulations. Our employees have appropriate pay protection in the event of an occupational accident. In some countries, as Spain, we supplement the financial benefit they receive up to their entire salary in situations of temporary ill health. The Group has a minimum standard in each unit of fully paid parental leave. All employees are entitled to a minimum of 14 and up to 52 weeks of paid maternity or adoption leave for the primary caregiver. The secondary caregiver is generally entitled to a minimum of 4 weeks of fully paid paternity or adoption leave 37. As a result of these inclusion measures and flexible return-to-work arrangements, 74 % of women continue working at Santander 12 months after returning from birth, adoption or pregnancy-related leave. Our employees have retirement coverage through public or private pension schemes in every market where we operate. Santander supplements this with defined contribution pension plans for our employees in our core markets. #### Collective bargaining and social dialogue Santander promotes respect for the rights of employees 38, including freedom of association and the right to collective bargaining. Our Responsible banking and sustainability policy considers forming or joining unions and other representative bodies a basic right of workers, in accordance with Article 10 of our General Code of Conduct. We also encourage respect for freedom of association, trade unions, collective bargaining and protection for employees’ representatives under the laws of each market where we operate 39. At 2025 year end, 129,875  employees worked at premises or in companies with union representation. We continued promoting and complying with the International Labour Organization’s Fundamental Conventions and have a European work council that meets regularly — Group senior executives and employees’ legal representatives from Italy, Poland, Portugal, Spain, the UK and other European countries attend. At the meeting held in May 2025, participants shared information on the Group’s economic and financial situation, outlook and overall results in the European Union, as well as other current topics related to sustainability, compliance, cybersecurity and artificial intelligence. We also remained in constant dialogue with employees’ legal representatives in bilateral and special committee meetings in our subsidiaries where all parties could discuss reporting, queries and negotiations about working conditions and employee benefits. We reached key agreements in our core markets in 2025, including committees on occupational health and safety, monitoring of gender balance plans in alignment with local regulations,, control of pension plans, training, updates to collective bargaining agreements, and also other bilateral meetings with union representatives.  Notable outcomes of collective bargaining include the signing of equality plans, such as the equality plan for Santander Global Technology and Operations, and the Group equality plan that applies to 15 companies in Spain.  Moreover, the collective procedures carried out during the year were conducted by consensus with employees’ legal representatives. In Brazil, Santander and other local banks implement preventive measures to minimize the risks from individual labour-related claims, which are common in this market. We have sufficient provisions to cover these risks 40. In order to minimize these claims, we continue with internal monitoring, establishing preventive measures to promote an environment with suitable working hours and remuneration for all positions in the same location according to local labour legislation and previous court rulings. We have also continued to make progress in the digitalisation of working time tracking and have strengthened policies and guidance for employees to ensure their correct use. 41 Other remuneration that complements our employees’ salary: benefits, pensions, other fixed remuneration, incentives, and short or long-term variable remuneration. 42 Climate targets account for 2% of executive directors’ total remuneration, while sustainability targets account for 7% of executive directors' variable remuneration. 43 See [Note 46](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1189) of the annual accounts. Excludes information relating to Santander Bank Polska S.A. and its subsidiaries. 44 Material risk-takers. 45 Measured with EPG - equal pay gap ratio, which compares the average remuneration between men and women who perform similar tasks. 2025 result for the entire Group. 46 YourVoice response to the question:  'In my own experience, employees who perform well are recognized for it'. 47 Employees who did not take part in MyContribution were new hires, employees of joint ventures, and employees in some customer service, debt recovery and contact centre roles who are subject to similar performance management schemes but with shorter and more continuous cycles due to the nature of their work. Among employees at year- end, 78,076 women ( 76% of the total number of women in our workforce at year-end) and 77,165 men (81% of the total number of men). Due to statistical significance, we don't inform other gender percentages. In 2024, the employees with performance review was 177,081 (86%). Of these, 90,998 were women (84% of the total number of women at year-end) and 86,071 were men (87% of the total number of men employed). 48 For more details on our behaviours, see section [4.1 ‘Corporate culture’](#i6ecb2a0d58d04b53bfadfa2a833efaa7_202). Annual report 202574 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Protection of employee data We process employee data under the protection of labour laws and based on the legal obligations or legitimate interests that data protection regulation covers. As the controller of this data, Santander has appropriate procedures, tools, and controls that draw on the Group's data processing policies. | | | | --- | --- | | | | | | For more information on data protection, see section [3.3.3 `Privacy, data](#i6ecb2a0d58d04b53bfadfa2a833efaa7_196) [protection & cybersecurity'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_196). | ii. Remuneration and corporate benefits #### Adequate remuneration Our remuneration framework combines fixed and variable pay schemes based on the performance of employees and the Group. Our remuneration and performance policies, as well as our General Code of Conduct, forbid differential treatment that is not based on merit and corporate behaviours. It also promotes appropriate pay. Specifically, the remuneration policy lays the foundations for non- discriminatory practices (related to performance and internal consistency), as well as the principles, processes and criteria for granting fixed and variable remuneration to create long-term value through risk management. To set pay, we strictly abide by the practices, regulations and collective agreements in force in each market where we operate. All Santander employees receive a salary equal to or higher than the legally established minimum in each of our markets and we comply with all local legislations and applicable collective agreements. Almost all employees (96%) receive other forms of remuneration 41 that supplement their salary.  This demonstrates our pledge to provide fair, competitive remuneration and the appropriate combination of fixed and variable pay. All our businesses and subsidiaries have short-term variable remuneration schemes to reflect what we have accomplished and how, according to Group-wide quantitative and qualitative goals as well as individual and team goals, behaviour, leadership, sustainability, commitment, growth and risk management. These schemes promote meritocracy, recognize individual and team contributions, and promote employee growth and well-being. Our executive directors’ variable remuneration, which aligns with our sustainability goals, includes achieving our sustainability and climate targets as part of its weighting 42. In 2025, we paid EUR 13.6 billion in employee wages and benefits 43. Reflecting EU regulation on remuneration and to manage risk correctly, we identified 1.336 employees 44 who are subject to a deferred variable pay scheme because their decisions can have a material impact on Santander's results. The majority of them are subject to a deferral policy of a significant portion of their variable remuneration (ranging from 40% to 60% depending on their level of responsibility) for four to five years, which is paid out at least 50% in shares and the rest in cash, and is subject to possible reduction (malus) or recovery (clawback). | | | | --- | --- | | | | | | For more information on remuneration, see [SN 7.3 'Employees'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_250). | #### Equal pay Our remuneration practices promote non-discriminatory salary management in terms of gender (gender neutral) and an equivalent remuneration, especially in cases where employees perform the same or similar work (equally remunerated for equal work or work of equal value). The pay gap between women and men who perform similar functions remains below 1%, in line with last period, with market remuneration practices, consistent with the trend observed in recent years 45. In certain units we continue to review the pay equity regularly and make adjustments where necessary. We also analysed the overall gender pay gap (GPG), which compares median remuneration for all men and women, and which stood at 26% in 2025 (an improvement of 4.5 percentage points over the past three years). To measure the suitability and acceptance of our policies, we consult employees across the Group, whose perceptions of recognition and meritocracy are consistent with recent levels of employee acceptance and the competitiveness of our remuneration plans. Employee rating on recognition 8.2 #### (out of 10) Satisfaction with performance recognition at Santander 46 #### MyContribution MyContribution is our global performance management model. In the last financial year, 155,249  (78%) 47 of the employees had their performance assessed under this model in 2025. Each employee’s performance review reflects the degree to which they have achieved the objectives they set together with their manager during the year – which in turn align with the organization's overall strategy – and how they have achieved them. We assess how they demonstrate the behaviours under our corporate culture and leadership traits, as well as the correct management of risks associated with their activities. 48 49 For more details on our workforce, see  [SN 7.3 'Employees](#i6ecb2a0d58d04b53bfadfa2a833efaa7_250)'. 50 Including Group Sr.Executive VP, Executive VP, VP, Director, Manager, Expert and Branch Manager. 51 At year-end 2024, the Group employed 4,828 people with disabilities, representing 2.3% of the total workforce. As in previous years, we follow local regulations for the calculation and recognition of employees with disabilities. In most countries, disabilities are recorded at the employee's request with the support of a certificate issued by social services (e.g. degree and date of disability). In the UK, disabilities are recorded at the employee's request and do not require a certificate. 52 LGBTIQ+: Lesbian, gay, bisexual, transgender, intersex, or questioning. 53 In 12 of the countries in which we operate, employees have the right to report their gender identity,  subject to applicable confidentiality rules and appropriate handling of information. Annual report 202575 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 3.1.3 Inclusive culture In this section we cover how Santander manages these IROs: | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | I+ | Promotion of a workforce that reflects the society we live in and encourages collaboration and provides opportunities for all our employees, irrespective of personal characteristics and in compliance with the law. | | | | | | | #### Inclusion as a strategic pillar of our culture An inclusive culture is an essential pillar of our strategy and corporate culture, as well as a cross-cutting principle in the Group’s management. Through this approach, we promote merit, equal opportunity and inclusion, driving the best diverse talent and ensuring compliance with local regulations, in line with international standards of conduct and responsible business practices. Fostering an inclusive culture is critical to our success in every market where we operate. The diversity of our teams, together with the creation of safe environments that value and respect differences, strengthens our relationships with customers, drives innovation, and improves decision-making. The highest level of corporate governance supports this approach. Matters related to our inclusive culture fall under the remit of the board of directors, which reviews them regularly through its committees. These principles are integrated into the main global policies and processes guiding talent management, meritocracy and professional conduct, including succession, appointments, selection and the assessment of the suitability of directors, as well as performance and remuneration processes. Our strategy and actions combine a global vision and align with the regulatory frameworks, realities and priorities of each market where we operate to ensure consistency and effectiveness of our inclusive approach across the Group. #### Diverse teams that reflect the society we serve 49 Gender • Women account for 52% of our total workforce, a figure that has remained stable. In 2025, 51% of new hires were women. • 40% of Banco Santander’s board of directors are women, in line with our objective to maintain a balanced representation between 40% and 60%, which will also become a legal requirement in some jurisdictions from 2026. • With this approach, we expect to progress gradually and sustainably towards gender balance, moving closer to c.40% of our executives 50 being women by 2030. In 2025 38.5% of our executives were women and  61.5% were men. #### People with disabilities • We strive for the successful inclusion of our 4,854 employees with disabilities in the Group (representing 2.5% of our global workforce, reflecting an increase vs. prior years 51). • In at least eight of our largest markets where we operate, legislation requires the inclusion of people with disabilities in the workforce. We comply with these regulations and reinforce them through active inclusion, accessibility and awareness policies. #### Diversity in other groups We monitor the representation of ethnic groups in our markets, where this topic is material and regulated. Employees who identify themselves as part of these groups account for 32.2% of the workforce there, which is consistent with the ethnic and racial make-up of those countries. Among employees who have voluntarily chosen to share information related to their gender identity, 2.2% identify as part of the LGTBIQ+ community. 52,53 #### We promote inclusive leadership and diverse talent. To foster inclusive and diverse leadership, senior management has specific objectives linked to team composition and succession plans. Beyond gender diversity, these objectives also cover career diversity and experiences across technology and digital and functional areas, which reflects our belief that a variety of perspectives strengthens the Group’s leadership capacity and naturally cascades throughout the organization. Moreover, among the key skills for all Group executives, we include the responsibility to create environments that foster everyone’s development, build trust through integrity and empathy, and promote a working environment that encourages experimentation and learning. Our model to attract, develop, promote and retain diverse talent is based on meritocracy and equal opportunity. We promote the growth of the best talent in diverse teams that reflect the richness of our environment and the communities we serve. To reinforce this inclusive culture, especially in the areas of business and technology, we promote gender balance and the incorporation of diverse talent from the earliest stages through programmes such as 'Summer internships' and 'Graduate Programmes' to ensure a solid and diverse future talent pipeline. Some notable initiatives include: • Global programmes that aim to strengthen women leadership, such as the 'SCIB Women Leadership Program' and 'InvestHer'. • Club Digital Girls Santander, an initiative that seeks to spark interest in technology among girls aged 8 to 18, daughters and relative of employees. 54  Consider race and ethnicity, colour, sex, sexual orientation, gender identity, disability, age, religion, political opinion, national or social origin, among others. 55 Average employee rating of the YourVoice question:  'I can be myself at Santander'. Annual report 202576 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | • A training bootcamp at Openbank for people with disabilities that focuses on technology-based skills with a 100% hiring rate for those who completed the program. We also take active part in leading global initiatives such as the Women’s Empowerment Principles (UN Women) and The Valuable 500, which drive gender equality and the inclusion of people with disabilities in organizations. #### Building an increasingly inclusive and engaged #### environment We promote an inclusive working environment that is free from harassment and discrimination 54 and where every individual is valued and respected. In 2025, 60,126  employees completed trainings on harassment prevention and 87,004 in unconscious bias, which are updated in line with the Global protocol against discrimination and the General Code of Conduct, which provide a common framework for respect, fairness and ethical behaviour. When we ask our employees whether they feel they can be themselves at Santander, the results are consistently high across different groups, confirming an inclusive environment. Employee rating on inclusion 55 8.9 #### (out of 10) Satisfaction with diversity and inclusion at Santander We have several employee networks that promote inclusion and diversity across the Group, among which three global initiatives stand out: Santander Women Network, with over 8,800 members, which promotes the professional development of women; Enable, with nearly 3,000 members, focused on the inclusion of people with disabilities; Embrace, our LGTBIQ+ network, with more than 4,300 members, which promotes  awareness and visibility. Other communities, such as Reach, Bold and Talento Não Tem Cor, with  4,400 members, also boost the representation of diverse backgrounds and experiences. Throughout the year we celebrate key days such as International Women’s Day, Pride Month and the International Day of Persons with Disabilities, developing initiatives that reinforce our culture of respect and awareness across de organization, as well as the deployment of  inclusive and accessible workspaces in our facilities,  that align with the diversity and needs of our people. | | | | --- | --- | | | | | | For more information on protocol on workplace and sexual harassment and moral integrity at work, see santander.com/es/nuestro-compromiso/ nuestra-cultura/diversidad-equidad-inclusion | #### 3.1.4 Employee feedback and experience As detailed in section [1.3 'Stakeholder engagement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_64)', YourVoice is our regular listening strategy to gather employees’ feedback. It includes specific questions to assess their perceptions, experiences and comments made on material items. Employees can share their views and provide comments on each question. In addition, each area has access to its own aggregated results, thus maintaining confidentiality, in order to identify improvement actions and continue strengthening the employee experience and value proposition, thereby supporting engagement and satisfaction levels. More broadly, cross-cutting action plans are also established at country and global business level. Since the implementation of YourVoice, we have observed a positive trend in results, with a participation rate of  80%. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Overall Engagement | | | Engagement How likely is it that you would recommend Santander as a place to work? | | 8.6 (out of 10) | | | | | | | | | | | | | | | | 8.5 (out of 10) In the middle range and +0.3 compared to the financial sector | NPS 61 In the top 5% and +21 points compared to the financial sectorA | | Advocacy How likely is it that you would recommend Santander’s products or services to friends and family? | | 8.7 (out of 10) | | | | | | | | | | | | | Satisfaction Overall, how satisfied are you working for Santander? | | 8.6 (out of 10) | | | | | | | | | | | | | Loyalty If you were offered a similar job (with the same conditions) at another organization, how likely is it you would stay at Santander? | | 8.2 (out of 10) | | | | | | | | | | | | | | | | Engagement measures the level of employees’ involvement and enthusiasm towards their job and the organization, and in the YourVoice survey it is calculated based on four main dimensions: Engagement, Belief, Satisfaction and Loyalty. A. Based on the  service provider's 'true benchmark'. | | | | | | For more details on processes to repair negative impacts and our channels for employees to express their concerns, see section  [4.3 'Ethics](#i6ecb2a0d58d04b53bfadfa2a833efaa7_208) [Channels'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_208) 56 Credit stock as at 31 December 2025. Excludes information relating to Santander Bank Polska S.A. and its subsidiaries. 57 Credit stock as at 31 December 2025. Data for small and medium enterprises (SMEs) and sole traders covers individual customers with an outstanding loan at 2025 year- end. Excludes information relating to Santander Bank Polska S.A. and its subsidiaries. 58 Does not include SAM funds distributed by Private Banking to avoid double counting. Annual report 202577 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 3.2 Sustainable development in our communities Affected communities are those where Santander has a presence as an entity, either through its businesses or its community support activities, and includes any specific groups mentioned in this chapter. #### 3.2.1 Supporting the economic and social #### development of our communities This section outlines how we manage the following IRO: | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | I+ | Support of economic growth and job creation in the markets where we operate, providing credit to people and businesses. | | | | | | | i. We help people and businesses prosper We help people and business prosper through finance and investment: → EUR 332.9 billion to help people buy homes and EUR 209.7 billion to purchase other goods. 56 → EUR 318.3 billion to help set up or grow companies (including 743.000 SMEs and sole traders). 57 → EUR 129.9 billion in assets under management in socially responsible investment, reaching our EUR 100 billion target 9 months early. → 6.3 million new people reached through financial inclusion measures since 2023, reaching our 5 million target to 2025 half year early. →  Our microfinance propositions in Latin America reached 1.8 million underbanked microentrepreneurs with EUR 1.26 billion in credit disbursed. As well through our community support initiatives: → EUR 163.7 million in community support, including 102.1 million to promote education, employability and entrepreneurship (the 3 Es), through Santander Universities. #### 3.2.2 Responsible investment and social #### finance This section outlines how we manage the following IRO: | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | I+ | Contribution to sustainable development through financing and investment that promotes sustainable performance in companies, addresses societal challenges, mitigates a specific issue, or pursues better societal outcomes. | | | | | | | i. Social finance Santander's financing supports social activities such as building hospitals, universities and homes for vulnerable people. We tag these activities as social to enhance the identification, management and reporting of this type of financing, following the same operating model and system that we use for environmental and sustainable finance. Under this concept, we consider the microfinance businesses that the bank has in Latin America (Prospera in Brazil and Colombia, Tuiio in Mexico, and Surgir in Peru), through which we granted EUR 1.26 billion in microcredit in 2025. These businesses, which we cover in more detail in the financial inclusion and financial health section of this report, often stretch beyond financing by providing access to a bank account and other services such as microinsurance for underbanked microentrepreneurs. In 2025, 1.8 million microentrepreneurs benefitted from this type of financing. In 2025 we entered into 18 agreements with Multilateral Development Banks that include sustainable finance commitments. 6 of these agreements, with a total value of EUR 1,729 million, include specific social financing commitments and focus primarily on extending access to credit for women-led SMEs, young farmers and other underserved segments. These loan, securitization and guarantee agreements will support the growth of businesses and entrepreneurs who face greater barriers to the financial system in Spain, Portugal, Brazil and Argentina. ii. Socially responsible investment Assets under management (AuM) in socially responsible investment (SRI) within Santander Wealth Management reached EUR 129.9 billion in 2025: EUR 71.5 billion managed by Santander Asset Management (SAM) and EUR 58.4 billion in third-party funds within Private Banking, portfolios and direct assets 58. This growth reflects our efforts to offer a diversified product range and to incorporate EU regulatory requirements, and in accordance with local law and regulation in each market. We calculate, process and store SRI AuM within Wealth in a dedicated repository to which we apply monthly control and validation. The Group’s Sustainability data office receives an automated report on these data every quarter. These data are subject to an annual limited assurance audit prior to disclosure. Our investment product and service proposition meets the transparency obligations of the Sustainable Finance Disclosure Regulation (SFDR), which require disclosure of information on the embedding of sustainability risk, analysis and management of adverse impacts on sustainability, ESG factors, and sustainable investment targets. Wealth defines SRI as the volume of AuM classified under Articles 8 (promoting environment and social characteristics) and 9 (with distinct sustainability objectives) of Regulation (EU) 2019/2088 Annual report 202578 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | (SFDR), except illiquid investment in Private Banking, which we report as committed capital. SRI includes: i) assets that SAM and other Group asset managers in the EU (and other regions where the SFDR doesn’t apply, using equivalent criteria) manage or advise on; and ii) third-party funds and advisory assets considered sustainable investment according to the SFDR (Article 2.17) or under SFICS. SAM has these governance policies in place: a socially responsible investment (SRI) policy, an engagement policy, and a voting policy, all of them applied in accordance with local law and regulation. The SRI policy sets out SAM’s socially responsible investment approach and the standards we consider to embed ESG variables in our investment analysis and decision-making. The Engagement policy outlines the principles and guidelines for active dialogue with issuers and other counterparties (such as investors and regulators) to promote transparency and better environmental, social and governance performance. The Voting policy outlines the principles and guidelines regarding the right to vote in portfolio companies, which facilitates alignment with the SRI policy to promote the strong performance of long-term investments. The SAM board of directors approves and oversees the SRI policy. SAM’s SRI team informs the local units of any revision of, or amendment to, this policy so that they adopt it correctly and, where appropriate, adapt it to local needs. Moreover, SAM’s SRI strategy and monitoring forum oversees the monitoring and coordination of SAM’s SRI strategy, as well as compliance with the SRI policy and monitoring and control of all activities to embed SRI in SAM. SAM publishes its policies on its official website, as well as on the Intranet, and are available to all stakeholder. The third-party regulations and initiatives that SAM has pledged to uphold or that inspire our policies feature in section 3 of our SRI policy, appendix II of our Voting policy, and section 3 of our Engagement policy. SAM España and Santander Pensiones have achieved full alignment with the Spanish stock market authority's (CNMV) Stewardship code (to which they have been signatories since 2023), reporting annually on the activities they carry out to comply with each of its principles. Moreover, SAM published its second SRI report in 2025, which strengthened transparency around SRI, voting and engagement practices in Europe and is consistent with local regulations in other areas. | | | --- | | | | AuM in Socially Responsible Investments in Wealth (accumulated EUR bn) | ![5566]() | | | --- | | | | 46.3% | | 2025 (vs. 2024) | | | #### Santander Asset Management Seeking to meet our customers’ needs, SAM offers SRI products for customers with sustainability preferences, alongside a broader range of investment solutions. As at December 2025, SAM held EUR 71.5 billion in SRI assets (13% year on year) spread across eight countries. This accounts for 28% of SAM’s total assets under management. SAM won Best National ESG Asset Manager at the 2025 Expansión–Allfunds Fund Awards. In 2025, we continued to expand our SRI product and service offering. We launched several new funds classified as Article 8: in alternatives - Real Estate Coliving Opportunities SCR and Atitlan Atgro-, three Target Maturity funds in Spain/Luxembourg, and 3 fixed income solutions in Spain/Portugal/Luxembourg. We also transformed two fixed-income portfolios in Spain We continued to strengthen voting and engagement methodologies and policies across our asset managers outside the EU. In 2025, we continued to focus on engaging with portfolio companies in high emitting sectors. SAM’s governance backs the execution of its SRI strategy. It follows environmental (including climate change), social and corporate governance (ESG) standards and is organized around i) an SRI strategy and oversight forum; ii) a voting and engagement forum; and iii) an investment and sustainability forum that our global team of SRI experts leads. At divisional level, the Wealth Management & Insurance ESG classification meeting, which brings together representatives from strategy, business, sustainability, risk and compliance, oversees and monitors key performance indicators across SAM, Private Banking and Insurance. #### SAM's ESG policies #### and relationship with the Group’s sustainability documents | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Other Group policies: • Defence policy • Environmental, social risk | | | Banco Santander responsible banking and sustainability policy | | | | | Ä | | | | } | SAM SRI policy | | | | | | Ä | | Ä | | | | SAM Voting policy | | SAM Engagement policy | | | | | | | | | | | --- | --- | | | | | Triangulo2IzdaGrisOscuroAlto.jpg | Banco Santander conflict of interest policyA | | Ä | | SAM Conflict of interest policy | A. The Conflict of Interest Policy provides employees, directors, and Group Santander entities with guidelines to prevent and manage conflicts of interest that may arise as a result of their activities. For more information, please see santander.com/en/our-approach/policies-and-initiatives. SAM has a global, multidisciplinary team of SRI experts that develops and implements our ESG methodology, engagement and voting activity and SRI policies, among other tasks. There is also a local network of ESG experts for each of the markets where we operate. Annual report 202579 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Moreover, we have a network of experts who are key to embedding sustainability in our investment and reporting both globally and locally. | | | | --- | --- | | | | | | For more details on our ESG approach in SAM, see santanderassetmanagement.com/sustainability. | | | | | --- | --- | | | | | | For more information on our engagement and voting strategies, see santanderassetmanagement.com/ sustainability/es/content/ view/11966/file/SAM\_Informe\_Stewardship\_221123\_ES.pdf | SAM’s SRI products SRI products in SAM’s core markets ![Mapa-SAM-SRI-ENG.jpg]() ESG methodology and business engagement SAM runs systematically its SRI policy that restricts or prevents investment in certain sectors that pose greater risks from a sustainability perspective, in accordance with local law and regulation. It also has its own analysis methodology based on market benchmarks and core international frameworks and standards, which enables it to assess the ESG performance of assets through ratings awarded to issuers. We define ESG factors based on the relative impact of each industry and its exposure to associated risks and opportunities that arise from changes in policies and regulations, technology, supply and demand, and stakeholder perception. We assign the ESG factors identified for each industry a weighting within the model, based on their materiality. The final ESG rating is the sum of the weighted average of each key matter. SAM uses its own criteria to determine whether an issuance can be considered sustainable investment according to Article 2.17 of the SFDR in order to meet the minimum percentage of sustainable investment that characterizes the fund or investment or savings solution. This analysis draws on the information provided by ESG data providers and SAM's weighting and materiality assessment methodology. Our methodology identifies a long list of key ESG matters where issuers can generate environmental or social externalities that could translate into material impacts for the issuer and, therefore, pose risks and potential opportunities. Our ESG rating analysis, always compliant with applicable local laws and regulations, comprises these elements: • Environmental factors: Any component of the issuer’s activity that may pose an environmental issue such as greenhouse gas emissions, resource depletion, pollution, water management, and others. • Social factors: Society-related matters that include workplace issues, labour standards, talent management, relationships with local communities, data privacy and security, and human rights. • Governance factors: Assessment of the quality of the issuer’s management, culture and ethics; the effectiveness of its governance systems to minimize the risk of mismanagement; and its ability to anticipate operational and legal risks that could lead to non-compliance. We conduct multidimensional analysis on how each company manages these factors. It includes the existence of policies, target analysis, integration of management systems, performance of key performance factors, and other elements. Outside the EU, we are making progress in training investment teams to embed ESG assessment and sustainable investment methodologies and standards with an approach that makes sense in each market, as well as increasing the coverage of our data providers in certain markets (especially Latin America and always in compliance with local regulation). Engagement comprises constructive dialogue with investees to gain a better understanding of how they manage ESG-related risk and opportunity, as well as their alignment with set investment objectives. This exercise can have varying aims: i) drive greater transparency and quality of information; ii) support better risk management and ESG opportunities; and iii) help achieve investment objectives. Our Engagement policy, approved by SAM's ExFo, sets out internal procedures, forms of engagement, and escalation procedures where targets are not achieved. Last, SAM exercises its right to vote independently in the companies it invests in under the scope and criteria outlined in its policy, which strengthens its influence on ESG and sustainability issues, in accordance with local law and regulation. #### Insurance In 2025, we continued to focus on developing products to safeguard vulnerable groups and reflect situations in specific contexts or markets that have little protection. We’ll continue to cooperate with our partners to promote this product offering and boost the management of our insurers’ SRI investments. #### Private Banking Our SRI AuM amounted to EUR 58.4 billion, including committed capital to alternative funds. Our global list of funds that are subject to client advisory services comprised mostly SFDR Article 8 and 9 funds in the EU. Moreover, we included five new ESG portfolios in the independent advisory service to bolster our sustainability proposition. In 2025, we continued to publish thematic articles for our customers on our global website, addressing issues such as Annual report 202580 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | sustainability vs. AI, energy storage, or GSS+ (green, social, sustainable and sustainability linked) bonds. We also made progress in forming teams of bankers who specialize in sustainability, with specific ESG experts. This helps improve dialogue with customers, identify their sustainability needs, and promote their awareness of sustainable investment. | | | | --- | --- | | | | | | For more details, see santanderprivatebanking.com | 3.2.3 Management of environmental and #### social aspects In this section we cover how Santander manages these IROs: | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | I- | Finance activities (in any customer segment) that breach the bank’s policies and jeopardize the well-being of present and future generations or fail to sufficiently involve appropriate stakeholders or use suitable customer identification and management mechanisms when providing finance to a customer or project. | | | | | | | | | | | | i. Our E&S risk management policy Our Environmental & Social (E&S) risk management policy is structured around principles that reflect our support for a fair and sustainable transition that is driven by growth, while acknowledging the specific realities of each region and in accordance with local law and regulation. This policy, which we review annually and make publicly available, sets out the criteria that we apply to investment in entities and the provision of financial products and services to customers in the oil & gas, electricity generation and distribution, mining, and metallurgy sectors, as well as to activities that relate to agricultural commodities. This policy, while remaining in accordance with local law and regulation, also places particular emphasis on biodiversity conservation and focuses on potential deforestation risks associated with customers in the agribusiness sector who operate within the Amazon biome and on nature degradation. It also dictates restriction criteria and enhanced due diligence requirements for specific activities within these sectors. From a social perspective, the E&S risk management policy follows international standards and benchmarks such as the United Nations Global Compact, the Universal Declaration of Human Rights, the International Labour Organisation Declaration, the Convention on the Rights of the Child, the Rio Declaration on Environment and Development, the United Nations Convention against Corruption, the Equator Principles, and the standards for social and environmental performance and the explanatory notes of the International Finance Corporation (IFC). Against this backdrop, the policy sets out restriction criteria and analysis requirements for these cases (which we apply in compliance with local regulations): • Projects or activities for oil & gas extraction, power generation or transmission, mining, manufacturing, plantations or other major infrastructure projects that put areas classified as Ramsar Sites, World Heritage Sites or categories I, II, III or IV by the International Union for Conservation of Nature at risk. • Projects that require free, prior and informed consent according to IFC Performance Standard 7 – Indigenous Peoples, and that fail to meet the standard, with no credible action plan to achieve compliance. In view of the principles and criteria that our policy dictates, analysts assess customers and projects on a case-by-case basis , based on the specific risks associated with both the customer and the transaction, and in compliance with applicable local laws and regulations. ii. Equator Principles The Equator Principles (EP) are a voluntary framework for financial institutions to identify, assess and manage environmental and social risks when financing projects. We have been a signatory to the EP framework and applied these principles, while still in accordance with local law and regulation, to project-related transactions (especially project and export finance) since 2009 according to their scope. The Group has an internal procedure to manage the environmental and social (E&S) aspects of project-related transactions. This procedure guides the application of the EP. The assessment of transactions that potentially require us to apply the EP starts with a preliminary assessment that the Front Office conducts. The area that manages ESCC risk under the EP sits in CIB. CIB’s ESCC Risk team oversees the Front Office’s preliminary assessment and provides it with ad-hoc training and support. We conduct an environmental and social review for applicable transactions, based on the preliminary assessment findings. This review follows these guidelines: • For projects with minimal or no adverse environmental and social risks and/or impacts (category C), the preliminary assessment is sufficient. • For projects with potential limited adverse environmental and social risks and/or impacts that are few in number (generally site-specific, largely reversible and readily addressed through mitigation measures — category B) in designated countries, the Front Office must complete a due diligence questionnaire that includes the findings of the E&S risk assessment. • For category A (with potential significant adverse environmental and social risks and/or impacts that are diverse, irreversible or unprecedented) and B (projects that involve high-risk factors or are in non-designated countries), the ESCC risk area manages the due diligence procedure and prepares an E&S risk assessment report. The findings of the E&S assessment form part of the financing application that the risk approval committees receive before a decision is made. If approved, we continue to apply the Equator Principles when preparing all subsequent contractual documents, closing the transaction, and monitoring it. Monitoring comprises compliance with the E&S clauses, the implementation of the corresponding E&S action plans, and compliance with the applicable E&S standards. When a material 59 Includes universities, institutions and organizations that have an agreement with Santander Universities, Universia and Fundación Banco Santander. Excluding Universia, the figure is 812  entities in 11 countries Annual report 202581 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | breach or incident is identified during the term of the transaction, measures could be taken in accordance with the provisions in the financing agreement (e.g. requirement to implement a corrective action plan). In 2025, we analysed 24 projects that fell within the scope of the Equator Principles (for more details, see [SN.7.1 'Green transition'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_244), table 5. 'Equator Principles'). | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | Management of risks and impacts on communities | | | | | | | | | As part of our due diligence under the EP framework, we assess and ensure that projects properly identify and manage environmental and social risks and impacts, and that constructive relationships are maintained with local communities in line with international standards. Regarding potential impacts on communities, we pay particular attention to these situations and ensure their appropriate management: • Involuntary resettlement or displacement (physical or economic) of people. • Risks to the health and safety of neighbouring communities. • Impacts on indigenous communities. In such cases, projects must obtain free, prior and informed consent in accordance with IFC Performance Standard 7. | | | | | | | | iii. Management of principal adverse impacts #### (PAIS) Asset management can generate unintentional adverse impacts on society and the environment. Banco Santander and its asset management businesses disclose and manage the potential adverse impacts that stem from the management of its portfolios through the measurement of KPIs that cover the material sustainability factors as detailed in SAM's PAIS procedure. Upon detecting an adverse impact, we assess several aspects to put mitigating mechanisms in place. We consider impact severity, frequency, success rate of dialogue initiatives, level of exposure, and other factors. #### 3.2.4 Community Support This section outlines how we manage the following IRO: | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | I+ | Contribution to education, employability and entrepreneurship, as well as to community development through support programmes. | | | | | | | i. Our approach At Santander, we run community support programmes in the markets where we operate to contribute to respond to their main needs and challenges. Santander's community support focuses on education, employability and entrepreneurship, which we supplement with support for financial education and to vulnerable people. Moreover, we have a strong track record in supporting cultural and other social initiatives, such as responses to recover from humanitarian crises. We deliver this support through donations and other contributions to initiatives and projects, many of which are distributed through Santander’s own platforms to achieve global scale. We provide support both independently and in collaboration with universities and other educational institutions, non-profit organizations and entities that pursue similar objectives. Santander has a Sensitive issues policy that covers donations and a Guide on community support and people helped that centres on the Business for Societal impact (B4SI) standards. This Guide sets out the methodology for quantifying the contributions that both the parent company and our subsidiaries make. We also have a humanitarian crisis guide that outlines Santander’s response to events or disasters with a social impact. ii. Support for education, employability and #### entrepreneurship | | | | | --- | --- | --- | | | | | | 102.1 | 4.6 | 1,045 | | million euros of support | million people and organizations helped | partnerships with universities and entities in 13 countries 59 | Santander has supported education, employability and entrepreneurship for nearly 30 years. During this period, we have invested over EUR 2.5 billion in partnership with more than 1,000  universities and entities from 13 countries, and helped over 8.3 million people, businesses and universities. In 2025 alone, we allocated EUR 102.1 million to promote education, employability and entrepreneurship, and helped 4.6 million people and organizations. This enables us to make headway with our target of contributing EUR 400 million to community support initiatives in these three pillars between 2023 and 2026. So far, we’ve contributed EUR 311 million between 2023 and 2025. We sign agreements with prestigious international higher education institutions to strengthen the university ecosystem. We provide scholarships and economic grants to adults so they can access and complete higher education. Annual report 202582 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | We also encourage lifelong learning through the acquisition and continuous updating of skills that provide better professional opportunities. We offer training, resources and access to benefits for SMEs, startups, scaleups and entrepreneurial projects to help them grow and strengthen their businesses. 1. #### Education Our support for education involves grants and scholarships for students and researchers to help them access and complete their higher education studies. We also help universities address their main challenges and strengthen their transformation in several areas, with a special focus on digitalization. We do this through: → Scholarships and grants awarded in collaboration with prestigious international universities and institutions to help with access to university, academic mobility, research and internship opportunities. → Campus Digital, which transforms university life through a secure digital service that facilitates the daily activities of academic communities. The platform includes such features as digital credential, administration procedures (tuition payments, grade checking, class schedules, etc.), news and benefits within a single space. | | | --- | | | | 1.7 | | million people helped through Campus Digital | | | | | --- | --- | | | | | | For more details, see mycampusdigital.com | → Universia Network, which provides a global space for meetings, cooperation and joint reflection between universities in the Ibero-American higher education area. It is present in 8 countries. → MetaRed a collaborative initiative that involves leaders from both public and private Ibero-American higher education institutions, and is governed by the universities themselves. It focuses on three key challenges that universities are facing: digital transformation (MetaRed TIC), university entrepreneurship (MetaRed X) and sustainability (MetaRed ESG). | | | | --- | --- | | | | | | For more details, see metared.org | 2. Employability We support lifelong learning through upskilling and reskilling as part of our purpose to help people prosper. We believe that continuous education is key to respond more effectively to current and future challenges and to meet the needs of businesses and society. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | Santander Open Academy | | | | | | | | | | | | | | | Santander Open Academy is a free global online learning and professional development platform that is open and available to everyone, with no requirement to be a bank customer. It provides access to diverse and flexible training offering through courses, scholarships, and content, enabling people to improve their employability by acquiring and updating professional skills and competencies that are most in demand in the labor market. The type of courses offered vary from limited places to open access courses. The catalogue of nearly 900 programmes, includes training in languages, technological tools, data, cybersecurity, artificial intelligence, soft skills, as well as health and wellbeing. In partnership with prestigious academic institutions, the platform offers programs with a large number of places, such as English courses with the British Council, or programs aimed at strengthening professional skills and business fundamentals developed together with Harvard Business Impact, which also collaborates on a training program focused on identifying best practices in university teaching. In addition, free places are available to access a wide range of courses from the Coursera catalogue. | | | Santander Open Academy also offers a broad range of programs with unlimited places, whose content has been created in collaboration with professionals, organizations, and institutions such as Google (AI applied to productivity, marketing, and the use of advanced tools like Gemini), Instituto Cervantes (Spanish language learning), the University of Pennsylvania (improving English for professional contexts), the University of Chicago (digital marketing and storytelling techniques), IE University (how to lead in the digital environment), and Cambridge Judge Business School (development of practical skills to generate impact in sustainability). One of the most prominent programs, internationally recognized, is Santander W50, which has established itself as one of the bank’s flagship initiatives to promote female talent and leadership in the countries where it operates. SW50 has been running for 15 years and is currently delivered in collaboration with the London School of Economics and Political Science. Santander Open Academy also includes scholarship calls to access and complete higher education studies, to support academic mobility, and to promote research. | | | | | | MoreInfo2023confondo.jpg | For more details, see santanderopenacademy.com | | | | | | | | | | Annual report 202583 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | → Universia is a free and open platform that enables students and graduates to boost their careers by accessing job opportunities and professional internships. It allows them to build their curriculum vitae guided by a tool that relies on artificial intelligence and offers them digital tests to evaluate their skills. | | | | --- | --- | | | | | | For more details, see universia.net | → Fundación Universia, is a renowned national organization that also participates in international forums such as the United Nations and the International Labour Organization on topics related to inclusive culture. We drive a better quality of life for people with disabilities and other vulnerable groups in educational and work environments. Since 2025, Fundación Universia has offered international programmes to promote awareness of social and labour inclusion for people with disabilities. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | 6,329 | | | | | | people helped through Fundación Universia A initiatives | | | | | | | | | | | | A. The total number of people supported by Fundación Universia equals the sum of 304 individuals supported through education programmes, 2,128 through employability programmes and 3,920  through social and labour inclusion awareness programmes, eliminating duplications. This taxonomy has applied since 2025. | | | | | | | | | | | | | | | --- | --- | | | | | | For more details, see fundacionuniversia.net | 3. Entrepreneurship Supporting entrepreneurship is one of our core objectives, with the aim of enabling businesses to digitalize, grow and transform. → Santander X is a global initiative that helps entrepreneurs and companies grow and transform their businesses. It offers a comprehensive value proposition that includes training programmes, challenges and awards, networking and tailored financial solutions. We promote and showcase outstanding projects and enable them to connect with other entrepreneurs, investors and companies through Santander X 100, the global community with the Santander X most remarkable businesses that also provides access to unique benefits and services. | | | | --- | --- | | | | | | For more details, see santanderx.com | → Global challenges for entrepreneurship. Innovation and cooperation are key to addressing society’s major challenges. At Santander, we search companies that promote responsible innovation, talent and collaboration to build a better future and we help them to boost their projects. In 2025, we launched two global contests for companies in 11 countries, through Santander X. The first sought to support the most innovative companies that focus on improving the quality of life and digital inclusion of senior citizens, a key group in the current demographic transformation. The second centered on transitioning to a circular economy, reducing waste, and promoting the responsible use of resources. Santander X Global Challenge | Reimagine Silver Age recognized startups and scaleups that focus on digital health, neurorehabilitation, smart monitoring and early disease detection using technologies that improve mobility, autonomy and quality of life. Santander X Global Challenge | Circular Economy Revolution handed out prizes to companies that focus on the circular economy, with solutions that optimize resource use, reduce environmental impact and promote the reuse, recycling and innovation of sustainable materials to drive a fair and responsible ecological transition. The winners of each contest received a cash prize, access to the Santander X 100 global community and Fintech Station (Banco Santander's open innovation space), and other benefits. | | | | --- | --- | | | | | | For more details, see santanderx.com/en/sites/reimagine-silver-age.html For more details, see santanderx.com/en/sites/circular-economy- revolution.html | 4. Featured Projects and Awards Santander’s support for education, employability, and entrepreneurship contributes to the progress of individuals and businesses. Our global programs, international partnerships, and recognitions reflect this ambition to generate impact. → SW50 Summit: A forum for women leaders. Santander W50 brought together nearly 500 women from around the world in London to explore what it means to lead with purpose today. In this annual meeting, participants pour over how to lead ethically in a constantly changing landscape. The topics under discussion in this year's edition were people management, crisis management, diversity and inclusion, and the use of AI in decision-making. | | | | --- | --- | | | | | | For more details, see santanderopenacademy.com/en/sites/ SantanderW50.html | → Tomorrow’s Skills report: Skills for future jobs. In 2025, we presented the Tomorrow’s Skills report in Brussels, sharing the conclusions of a global assessment of the skills that the labour market is demanding most amid digital transformation and sustainable transition. The study involved 15,000 participants from 15 countries, who gave voice to the major challenges that are transforming education, employment, and competitiveness. The report highlights lifelong learning and artificial intelligence as key drivers of future employability. It also identifies the learning formats best suited to labour market needs and the most sought-after skills, which include digital, AI and soft skills. | | | | --- | --- | | | | | | For more details, see santanderopenacademy.com/en/sites/tomorrow- skills.html | → International recognition. Fortune’s 'Change the World' list praises companies that generate positive social impact through activities that form part of their business strategy. Santander has appeared on the list for the third consecutive year thanks to its support for education, employability and entrepreneurship, with global initiatives such as Santander Open Academy playing a central role. ![]() 60 Includes the social contributions of the foundations linked to the Group. 61 Based on the internal 'People Helped' methodology, which considers international best practices. Calculated with partners’ certified data or with conservative estimates based on recognized conversion factors. The figure of people and organizations helped through Santander Polska in 2025 is 1.1 million. 62 santander.com/en/stories/santander-releases-the-report-the-currency-of-learning-global-perspectives-on-financial-education 63 The figure of people helped through financial education initiatives by Santander Polska in 2025 is 0.8 million. Annual report 202584 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | iii. Other community support action We bolster our support for education, employability and entrepreneurship with financial education and helping vulnerable people. | | | | | --- | --- | --- | | | | | | | | People2.jpg | | 61.7 | | 5.2 | | million euros in other community support programmes 60 | | million people and organizations helped 61 | | | | | | --- | --- | --- | | | | | | Financial education | Vulnerable people | Arts and culture | | EducacionBorla.jpg | WheelchairAccesibility.jpg | Pajarita.jpg | | Enhancing knowledge and understanding of financial products and services | Reducing risk of exclusion and better quality of life for vulnerable people | Promoting cultural events and programmes | On top of direct community action, we cooperate with, and channel our support through, local non-governmental organization (NGOs), social charities, and corporate volunteering. In some cases, cooperation is through foundations that the bank runs in several markets, including Argentina, Mexico, Poland, Portugal, Spain, and the UK. We target our support to different groups depending on their needs. Our support for vulnerable people focuses on sensitive groups (due to gender, disability, age, lack of digital skills, financial difficulty, and other reasons). We usually target cultural activities at the general public, though we also include vulnerable groups to facilitate their access to events and programmes. #### Financial education We continue to reinforce financial education as a strategic lever for progress that boosts financial health and social inclusion in the markets where we operate. In 2025, we carried out a simplification and alignment exercise in all our markets Group, which prioritized initiatives with greater reach, quality and evidence of impact. We combine solutions based on target audiences and intended outcomes: on the one hand, more efficient and scalable digital initiatives; and on the other, in- person initiatives that focus on vulnerable groups. In 2025, we presented the 'The Currency of Learning' report in London, which includes the results of a global survey on financial education conducted in over 10 markets. The findings of this report have been instrumental in guiding our strategy. They highlight the importance of scaling digital learning, improving results traceability, and embedding financial education in the customer journey, particularly during key customer interaction. The full report is available to the public at santander.com 62. Guided by the OECD Principles and the Corporate Guide to Financial Education, we continue to strengthen common standards for measuring and reporting beneficiaries. In 2025, 3.4 million people took part in or accessed our financial education initiatives and content 63, which in social media terms means people engaging with the content (not just the scope of the activity). | | | | --- | --- | | | | | | For more details on financial education, see santander.com/es/nuestro- compromiso/crecimiento- inclusivo-y-sostenible/educación-financiera | #### Humanitarian crises As a global financial institution that operates in several regions and markets, Santander is fully aware of the impact that disasters with significant social consequences can have on the well-being of individuals and communities. Against this backdrop, the Group has since 2023 a Humanitarian Crises Guide to provide a structured framework for responding effectively to such events. Through our protocol, we offer coordinated support to affected citizens, customers and employees. Over the past two years, the Group has played an active role — including financial assistance — in relief efforts amid several humanitarian crises. These include the dana (flash floods) in Valencia, Spain; wildfires in Valparaíso, Chile; floods in Rio Grande do Sul, Brazil, and in the southern provinces of Lower Silesia and Opole, Poland;, the humanitarian crisis in the Gaza Strip; and earthquakes in Gansu and Qinghai, China. In 2025, Santander reaffirmed its commitment to communities affected by humanitarian emergencies by continuing to focus on promoting economic recovery, social stability and sustainable development. Recent initiatives include support to the people affected by the floods in Valencia, Spain, and Bahía Blanca, Argentina. #### Charitable foundations Fundación Banco Santander, which is based in Spain, works to build a fair, inclusive and sustainable society by financing and running several cultural, educational, social and environmental projects.  Dividends from shares donated by the bank enable it to cover the costs (at least partially) associated with fulfilling its founding purposes. Among its activities, it manages the bank’s art collection and finances cultural productions and activities in theatres, auditoriums, museums and cultural centres, as well as providing support to NGOs and third-sector organizations. Over the past year, a particularly key initiative was the transformation of the bank’s former headquarters on Paseo de Pereda in the city of Santander into Faro Santander, a space to showcase the bank’s art collection alongside research-, technology- and culture-related exhibitions and activities.  Moreover, Fundación Banco Santander promotes the development of Spanish universities through collaboration agreements. | | | | --- | --- | | | | | | For more details, see fundacionbancosantander.com/es/fundacion/ transparencia. | ![]() 64 The figure of employees participation in Santander Polska in 2025 is 882. 65 For more details on customer dialogue, see section 1.3. 'Stakeholder engagement'. 66  The actions outlined in this section are specific to Santander and not sector-wide. Annual report 202585 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | We have other Santander foundations in markets where we operate (Argentina, USA, Mexico, Poland, Portugal and the UK), which add to the number of initiatives we run. While their primary focus is cultural and social, they also align with the bank’s community support priorities. | | | | --- | --- | | | | | | For more details on our foundations in other countries, see esg.santander.pl (Poland), fundacionsantander/argentina (Argentina), and fundacaosantanderportugal.pt (Portugal). | #### Corporate volunteering At Santander we encourage our employees to volunteer in initiatives that help the communities where we have a presence. These initiatives, which the Group promotes and supports, seek to get employees to dedicate their time and use their skills and talent to support charitable causes, non-profit projects and organizations that benefit society. Corporate volunteering is a valuable way for employees to engage with the community and contribute to a social cause. In particular, it aims to: → contribute to the Group’s community support objectives through the direct involvement of Group employees in volunteering programmes; → foster a culture of inclusion by breaking down prejudices and stereotypes; → enhance our employees’ skills and work environment through collaboration; and → contribute to the well-being of our employees through experiences that provide satisfaction, purpose and pride of belonging. | | | | --- | --- | | | | | 59.8 k | 15.5 k | | working hours volunteered | employees who have volunteered 64 | | | | We have a global corporate volunteering guide that sets out a common framework for this activity. At local level, each subsidiary runs initiatives that are tailored to the specific needs of its region to strengthen community ties and maximize positive impact. Within this framework, our volunteering programmes are primarily structured around education, employability, entrepreneurship, social inclusion and financial education, which account for the majority of the initiatives carried out across the different geographies. Alongside these areas, we also promote community support actions in other fields, such as environmental initiatives, which complement our work and strengthen the positive impact in the territories where we operate. We also promote volunteer activities in the context of team events, where in addition to supporting social causes, we foster skills such as collaboration, teamwork, empathy, and communication. #### 3.3 Our customers Our customer-centric approach is a fundamental lever to create sustainable value, 65 build a digital bank with branches, and provide a multi-channel proposition that covers all of our customers' financial needs. We operate through five global businesses that serve various customer types, including individuals, SMEs, large corporations and public entities. 66 . This chapter focuses on individual customers who use the products and services that the Group offers and enter into a contractual relationship with us. This includes customers who, due to their circumstances, may be particularly vulnerable to the marketing of products and services. For more details on the main impact that stems from relationships with corporate customers, see section 3.2.3 ‘Management of environmental and social aspects’. 67  For more information on our human rights commitment to our customers, see section 1.4 on our commitment to human rights. Annual report 202586 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 3.3.1 Conduct with customers In this section we explain how Santander manages these IROs with regards to conduct towards customers: | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | R | Potential losses due to complaints or a reduction in the number of customers because of inadequate customer practices. | | | | | | | | | I- | Negative impact on the customer if the bank fails to provide sufficient information on products or services. | | | | | | | | | I- | Negative impact on the customer if they do not have access to complaints channels or if, after making a complaint, the bank fails to take the necessary action. | | | | | | | i. Customer conduct principles Customer conduct risk model Our customer conduct risk model promotes transparency, fairness, and responsibility in all customer engagement, including product design, pricing, complaint handling, and financial education, while preventing over-indebtedness and protecting vulnerable customers 67. This model outlines the governance, key processes and instruments that enable us to mitigate and manage customer conduct risk at every stage of our relationship with them. #### Model principles → End-to-end product and service approval and monitoring cycle that, cover design, sales, and post-sale; fair treatment; customer- focused product and service design; and transparency in all customer engagement. → Responsible pricing and sales practices. → Special focus on vulnerable customers or those under special circumstances, and prevention of over-indebtedness. → Protection of customers’ personal data and use exclusively for authorized purposes. → Easy, fair, secure and efficient access to complaint mechanisms. → Promotion of financial literacy so consumers can understand financial products and risks, make informed decisions, and ensure suitable protection. → Ensure strong controls and secure mechanisms to protect consumers’ assets. #### Key processes → Robust approval and ratification of products and services. → Customer conduct training. → Sales oversight, with special focus on the classification and suitability of products and services; advertising and monitoring throughout the product lifecycle; and complaints handling (Customer service and dissatisfaction management policy). → Conduct-related remuneration of sales and support teams with regards to proper conduct behaviours (Remuneration policy). → Risk and control self-assessment on conduct risks. #### Governance and remit → Our Conduct risk management team within Compliance develops and oversees how we engage and manage risk with our customers according to the Conduct with customers risk model. → The board of directors approves the Approval of products and service policy, while local and Group product governance forums assess and approve products and services. → The board is also responsible for approving of the Group Remuneration policy, while the remuneration and risk committees, with the support of the Human Resources and Compliance functions, monitor this policy’s compliance. Our conduct risk identification and assessment seeks to proactively identify behaviours or practices that may lead to regulatory breaches, customer detriment, or reputational harm. Ensuring fair customer outcomes takes a coordinated approach that involves the first and second lines of defence to ensure a comprehensive risk assessment. Through the continuous monitoring of risks, indicators and mitigation tools, the Group ensures early detection and effective response to situations that may compromise customer protection. The Group has strengthened complaints handling through further monitoring of the customer voice by analysing complaints and conduct events through key metrics, enabling early identification of risks and trends and supporting timely mitigation actions. | | | | --- | --- | | | | | | For more details on internal conduct events, see [Note 25](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1096) of the annual accounts. | ii. Product and service marketing and design #### Product and service governance The Approval of products and services policy regulates the product approval process at local and Group level by defining roles and responsibilities and setting criteria for product assessment, approval and monitoring, which builds on the conduct risk with customers management model. Santander has a well-established, robust and consistent product governance, that the Group Compliance team owns and manages. It is an end-to-end cycle that regulates the approval and monitoring of products and services, Annual report 202587 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | covering their design, sale, and post-sale stages and ensuring approval of proposals according to regulatory requirements, ethical principles and market conduct, both at local and Group level. Product governance forums are responsible for implementing this policy when approving products and services, as well as defining approval requirements and coordinating validation, which includes monitoring and reporting to senior management. We only approve products and services once we've assessed all risks and forum members are unanimously in favour. #### Conduct training Training is key to boosting knowledge to foster consumer protection. The Compliance function, with the support of People & Culture, draws up mandatory refresher training for all employees on managing and mitigating customer conduct risk. All units ensure strict compliance with local requirements; supported by robust training. #### Quality and conduct metrics in sales teams’ remuneration The Group establishes requirements to ensure we link variable pay to service quality and conduct metrics. This approach promotes greater awareness and proactive management of customer relationships, encourages high levels of transparency, and supports the identification of appropriate target audiences. #### Sales monitoring The Group has mechanisms to monitor products and services throughout their life cycle. These enable us to detect and manage (as early as possible) potential deterioration, failures in marketing, and non-compliance with the terms and conditions under which they were approved. We analyse and monitor: • Customer voice: Queries, complaints and surveys are a key source of information to identify deficiencies in marketing and customer engagement, and to draw up improvement plans; and • Sales metrics and controls: Monitoring the percentage of product or service cancellations shortly after sign-up. iii. Post-sales #### Complaints handling The Customer service and dissatisfaction management policy outlines the principle of making multiple channels available to avoid the potential impact of not having suitable means for customers to convey their issues or dissatisfaction and to promote the fact that we have channels that adapt to our customers’ needs and preferences. Additionally, customers can escalate complaints through external channels when they are in place, such as the Financial Ombudsman, regulatory bodies, and consumer agencies, if they are not satisfied with how we have handled the complaint. Units continue investing in digital channels to speed up case resolution and help customers self-manage certain queries. Root- cause analysis and mitigation plans are an essential component of complaints handling that is continuously being strengthened. In 2025, the total number of formal complaints received was 772,780 for a total customer base of 180 million. For further information, see [NS 7.4 'Customers](#i6ecb2a0d58d04b53bfadfa2a833efaa7_253)' (Table 24. Total complaints). iv. Vulnerable customers In this section we cover how Santander manages this IRO: | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | I- | Negative impact on the customer by failing to guarantee access to, or the use of, products and services that may present certain obstacles or weak spots. | | | | | | | Vulnerable customers are those who, due to personal, social, economic, educational, cultural or health-related factors, whether temporary or permanent, experiences difficulties in understanding, accessing or exercising their rights as a consumer on an equal basis, and therefore requires adapted support to ensure their inclusion and effective protection. Given the wide range of challenges, we have developed a comprehensive approach of support them –  in terms of how products are developed, communicated and in all interactions. We look to identify and consider customer vulnerabilities through specific standards and dedicated procedures, and try to prevent and mitigate any detriment. In 2025, the Group strengthened its approach to vulnerable customers, defining common minimum standards across all markets while allowing local adaptation in line with local regulation, commitment and strategy. This includes local and Group-level processes to identify and monitor customers under special circumstances. In 2025, Santander Spain reached a landmark by becoming the first IBEX-listed company to certify a 360º accessibility commitment by AENOR, covering physical and digital channels and ensuring that all products, services and relationship channels are accessible for all customers, regardless their diverse physical, sensory, cognitive, or age-related abilities. 68 For more details, see santander.com/informe-inclusion-financiera. Annual report 202588 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 3.3.2 Financial inclusion and financial #### health This section outlines how we manage the following IRO: | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | I+ | Positive impact on customers due to the bank’s offer of products and services that adapt to their needs and expectations and promote financial inclusion and health. | | | | | | | i. Financial inclusion and health as a key driver #### of social progress Financial health and inclusion are a priority for Santander in contributing to social progress and promoting prosperity and entrepreneurship. We use the World Bank's Global Findex Database to calculate the number of unbanked, underbanked and financially distressed people due to access and financing issues in the markets where we operate as a retail bank. In particular, we: • consider several components of financial exclusion and aggregate indicators to cover all our target audiences; • define an inclusive financial system as one that maximizes the use of financial products and services, access and financing; • measure involuntary financial exclusion through barriers that people who do not participate in the formal financial system perceive; and • apply a correction factor that matches our business penetration rate in the markets where we operate. Thanks to our financial inclusion efforts, we achieved our objective of reaching five million new people with at least one financial inclusion measure during the period 2023-2025 reaching 6.3 million people. This ambition aligns with our market penetration levels and the gaps identified in our exclusion analysis. Our processes pinpoint the needs of customers facing financial difficulty so we can develop products and services and train our teams. 68 These processes are consistent with our customer conduct model, vulnerable customer policy, and responsible banking and sustainability policy. In 2025, we updated our Corporate Financial Inclusion guide to reflect best practice. We also changed how we monitor and measure progress, differentiating between financial inclusion and financial health. The updated guide continues to enable the homogeneous measurement of access and financing initiatives across markets and sets out these common definitions: • Unbanked: People who do not have a bank account or access to any banking services. • Underbanked: People who, despite having a bank account, have difficulty accessing basic services (e.g. making deposits and withdrawals) or who source financing informally. • People in financial distress: People who earn less than their country’s legal minimum wage or who are unable to cover basic living expenses. The guide also provides a consistent metrics system for monitoring and managing access and financing initiatives. Though we have achieved our ambition, we will continue working to increase access, improve the use of financial services, and strengthen our support for vulnerable individuals and communities. | | | | | --- | --- | --- | | | | | | New people benefiting from financial inclusion measures A,C | | Target | | +5 mnB | | 1.8 m | 4.3 m | 6.3 m | | 2023 | 2024 | 2025 | In 2025, we financially included nearly 1 million people through access initiatives; and 1 million people through finance initiatives. A.Based on our internal financial inclusion methodology. This includes the principles, definitions and standards we use consistently across our footprint to count the number of people we include financially through initiatives, products and services for access and finance. B. Cumulative figure since 2023. C. The figure of people financially included through Santander Polska in 2025 is 0.5 million. Annual report 202589 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | --- | | | | | #### Access c. 1 #### million new people benefiting from access-related financial inclusion measures We help unbanked and underbanked people enter the financial system and gain access to basic financial services, encourage them to use financial services that are tailored to their needs and barriers, have greater control over their finances, and enjoy faster and more secure transactions. In 2025, our initiatives continued to: • adapt to developing and mature market needs: ▪ In developing markets, we focus on providing access to bank accounts and cash deposit and withdrawal services to unbanked and underbanked people. Our stand-out initiatives include partnerships with merchants in Mexico to offer Santander services and financial inclusion branches in Argentina. ▪ In mature markets with high account penetration but an exodus of people from rural areas and an ageing population, we focus on continuity in access to basic financial services. Stand-out initiatives include Correos Cash and the waiving of fees for vulnerable customers in Spain. • offer access amid humanitarian crises. We make mobile branches available to remain close to our customers in the most affected areas and keep key financial services running, such as cash withdrawals, salary advance and payment holiday requests, and insurance claims. For more details on our actions during humanitarian crises, see section [3.2.4 'Community support'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_184). • promote inclusion. We are constantly adapting branches, products, services and channels for people with disabilities and senior citizens to be able to access them both in person and online. We do all of this by harnessing technology to drive financial inclusion and overcome some of the barriers that prevent unbanked and underbanked people from accessing financial products and services. | | | | | | --- | --- | --- | --- | | | | | | | Access initiatives and services: | | | | | Basic financial solutions Promote access to the financial system for unbanked individuals (accounts, insurance, etc.) and maintain access for potentially excluded groups, such as the elderly or others facing vulnerabilities. | | | Basic accountsA | | | | Support to senior citizen customersB | | | | | | | Promoting access to cash and transactions Facilitate community access to cash through our branches and ATMs in remote areas, and partnerships with public and private entities that extend our reach. | | | Branches in underbanked and remote regionsC | | | | Digital wallets and points of saleD | | | | Partnerships to reach underserved communitiesE | Beyond retail and commercial banking solutions, the Payments business provides through Getnet digital payment solutions to individuals and merchants, particularly those who are underserved or underbanked, with a strong presence in Latin America. Annual report 202590 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | --- | | | | | #### Finance 1 #### million new people benefiting from finance-related financial inclusion measures We finance underbanked SMEs and entrepreneurs, as well as the basic needs of low-income households through products and services that we tailor to their needs. Our microfinance proposition supports inclusive growth and economic development in Latin America, where the financial inclusion gap is wide. We have been offering microfinance services to low-income and underbanked entrepreneurs since 2002. We help our customers set up small businesses, which drive economic growth and social mobility. Through these initiatives, available in Brasil, Mexico, Peru and Colombia, we offer loans to boost new ventures’ income- generating capacity and help microentrepreneurs safeguard their businesses through financing that meets their working capital needs. A large portion of the customers under these initiatives are women, who are less likely to access financial services in developing markets. In 2025, we continued to: • build on our business proposition from microcredit to microfinance by extending our customer value proposition through solutions that go beyond credit (basic accounts, financial education, microinsurance and other services); • make business models more efficient, without jeopardizing the social impact of our proposition. For instance, we leveraged the use of technology to open low-cost mobile branches and improved handling procedures to minimize the time from microloan application to making funds available to our customers; and • combine the group and individual credit model to adjust it to our customers’ circumstances and needs, leaning towards the individual model in Peru and Colombia and growing — albeit at a lower rate — in Mexico. | | | | | | --- | --- | --- | --- | | | | | | | Other finance-based initiatives and services | | | | | Support for entrepreneurs and SMEs Financing programs for entrepreneurs, start-ups, and SMEs with limited access to the financial system and credit. | | | Products oriented to providing credits to SMEs | | | | | | | Financing low-income households' basic needs We offer products and services that enable low-income households to access housing and meet other basic financial needs. | | | Affordable housing supplyF | | | | Support for low-income households and people with difficulty accessing creditG | A. In some countries, we have basic bank accounts that go beyond regulation in order to serve the bottom of the pyramid. For instance, the Cuenta LIfe in Chile or the no-fee account for vulnerable customers in Spain. B. We have value propositions aimed at the elderly in several countries. For instance, tailor-made products for retirees in Mexico and Argentina; services such as SuperLinha Senior in Portugal to help seniors with limited digital skills; and third-party access initiatives in the UK to support seniors who need to be cared for. C. In Spain, branches in remote (or sparsely populated) areas to facilitate access to credit and combat social exclusion in communities of less than 10,000 inhabitants. In Portugal, branches in low-income, small or isolated regions, such as the Azores and Madeira. In Argentina, we have financial inclusion branches and remote agents in the marginal environment of Buenos Aires and vulnerable communities. In Poland, ATMs in municipalities where there is no Santander branch or partner point of sale. In Uruguay, we have installed three mobile branches (the first in 2020) to reach areas with low levels of banking penetration. D. In Poland, we included the Cashless Poland programme to promote the use of payment terminals in places where the use of digital media is low, as well as the use of our associated Partner Outlets points of sale. In Chile, we included Mas Lucas. E. Agreements with Correos Cash in Spain, partnerships with retailers such as Oxxo and 7Eleven in Mexico, and agreements with third parties in Uruguay (e.g. Abitab, Red Pagos). F. In Spain, the bank participates in the Social Housing Fund, which facilitates renting for people on low income. It also has affordable rental housing. In the US, as part of its Communities plan, Santander US provides support for the construction, maintenance and rehabilitation of homes for low- and moderate-income households. G. We have initiatives to help groups with difficulties in accessing credit; among them, in Spain, we lend to SMEs at their risk limit; in the US, we lend to small businesses operating in low- and moderate-income communities; in Argentina, we lend to entrepreneurs with little credit history. In Mexico, we offer special credit programmes to people at the bottom of the pyramid. ii. Progress on financial health In 2025, we continued to strengthen a common financial health approach in all the Group’s markets. We define financial health as individuals’ ability to manage their finances in a way that enables them to meet short-term needs while planning for and achieving long-term goals, generating stability, and reducing the risk of financial hardship. Throughout the year, we made headway with identifying and building on initiatives that help customers’ develop financial skills. We combined global tools — such as goal-setting solutions and planning resources within our banking app in certain countries — with local action, including tailored financial education content and practical guidance that align with market-specific needs. As part of this, we came up with a common financial health definition and measurement guide that will enable homogeneous and comparable progress assessment across markets. Our framework directly complements our financial education and inclusion efforts and ensures that individuals not only gain access to the financial system but also acquire the knowledge and tools needed to use it responsibly and effectively. In 2025, the Pay Smarter concept was introduced to promote a more informed use of credit cards as a financial management tool. This approach is structured around three pillars aligned with Annual report 202591 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | financial health objectives (benefits, control and security) and has already been deployed in most retail markets through our owned channels (website, mobile app, branches and contact centres). In 2026, its rollout will continue under a phased plan to reinforce message consistency and support a common understanding of the responsible use of payment instruments among customers and employees. This expansion includes extending digital content and providing training to commercial teams to promote consistent communication. For more details on our financial education programmes for customers and non-customers alike, see section 3.2.4 ‘Community Support’. #### 3.3.3 Privacy, data protection #### and cybersecurity This section outlines how we manage these IROs: | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | I- | Potential infringement of customers’, employees’ or shareholders’ rights due to a lack of appropriate technical or organizational measures to protect their personal data in accordance with applicable law and Group standards. | | | | | | | | | I+ | Education and awareness on cybersecurity issues to understand potential threats and mechanisms to avoid them. | | | | | | | | | R | Potential losses due to fines or a reduction in the number of customers because of a failure to detect or respond effectively to breaches of privacy. | | | | | | | i. Privacy and data protection The use of new technologies and progress with the digitalization of businesses have led to a rapid increase in the processing of personal data. Our commitment to complying with regulation on the protection of personal data throughout their life cycle is key in this regard. Our corporate policies and standards remain consistent with data protection and privacy laws at all times, with ethical and transparent management of personal data to enable individuals to exercise greater control over their data. We apply measures to obtain and use only the data that is strictly necessary to process personal data for legitimate purposes. The aim of these technical and organizational measures is to preserve the confidentiality, integrity, availability and resilience of the systems and services that we use to process data, to achieve the correct protection of data subjects’ rights and freedoms, and to boost individuals’ and broader society’s trust. We created our compliance programme by following the privacy standards to manage data protection risk correctly. It is based on: • local units’ responsibility to abide by the General Data Protection Regulation (GDPR) and/or local regulation on data protection; and • a robust governance model that comprises: 1. corporate and local data protection policies; 2. a data protection officer (DPO) and/or privacy champions in each unit. We formally disclose DPO appointees to local authorities; and 3. a corporate oversight programme based on the monitoring of management indicators and annual reviews. Other measures that strengthen our data protection management are: • procedures to manage security incidents and the risks arising from actual or suspected unauthorized access, disclosure, or use of personal data, with area-owned action plans when required; • cooperation with third-party service providers that must comply with data protection regulation. Data processors are subject to a suitability test that we monitor through management indicators and review regularly; • reviews on our compliance with data protection laws, which our Internal audit area performs as part of its annual programme; • corporate tools that help us manage data protection-related tasks by bringing together and monitoring control information through indicators and the annual review programme. For instance, we regularly update our data processing inventory and report on indicators and security incidents; and • employee training and awareness campaigns on data protection, which form part of our mandatory annual curriculum and that we monitor through management indicators. ii. Cybersecurity Cybersecurity provides vital support to our purpose of helping people and businesses prosper and our aim to provide customers with first-rate digital services. The Group operates under a cybersecurity framework that Banco Santander’s board of directors approved and the subsidiaries’ governing bodies adopted. This framework sets out the governance, functions, roles and responsibilities for cybersecurity management across the Group, including the role of the global Chief Information Security Officer. A set of cybersecurity policies, which align with international standards and we review continuously, supports this framework to maintain and enhance security levels. To assess how we’re doing on cybersecurity within the industry, we monitor the security rating that an independent third party provides us. Bitsight Company gives us with a score between 250 and 900 (with 740-900 considered 'Advanced') based on public information and externally visible network traffic and systems. In 2025, we scored 800 points, which put us in the upper quartile among our peers and meant that we hit our target. Protecting our customers’ and employees’ information is the responsibility of every Santander employee. We outline this in another policy under our cybersecurity framework: Cybersecurity standards for the protection of Santander, which sets out the principles that we must follow. In 2025, we continued to strengthen cybersecurity awareness across our teams by: Annual report 202592 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | • conducting regular ethical phishing exercises for all employees, with targeted simulations for higher-risk groups such as IT administrators and payment agents; • reinforcing key protective behaviours through the Cyber First campaign, emphasising the importance of reporting suspicious incidents or communications; • updating mandatory cybersecurity training to address emerging threats, including malicious emails, messages or calls, deepfakes, identity theft and social engineering; • updating specialized training for high-risk groups such as payment agents, IT professionals and developers, digital asset owners, board members, and executives and their support teams. • delivering targeted fraud prevention training for case management teams in call centres and branches; • issuing mandatory guidelines for specific groups — developers, IT administrators, call centre staff and other critical profiles — to reinforce good security and compliance practices; and • introducing the Cyberrisk Score indicator for team leaders to embed individual cybersecurity results in annual performance reviews. To help customers protect themselves better online, we combine education, in-person experiences and awareness campaigns with impact measurement mechanisms that enable us to adapt content to market needs. In 2025, the digital campaign detailed below achieved an engagement rate of 74%, which was up on the previous year. • Santander Open Academy. An open education platform for large- scale digital learning. In 2025, we launched the course 'Digital Safety for Daily Life', an eight-hour programme comprising four modules on essential online protection habits and fraud prevention strengthening access to cybersecurity education content for the general public. • Santander WorkCafé. In-person workshops for retail and corporate customers on digital risks and prevention. In 2025, we ran these workshops in Brazil, Mexico, Poland, Portugal, Spain and the UK, and achieved a satisfaction rating of over 9 out of 10. • Global awareness campaigns. The Group ran two creative initiatives under the 'Everyday Cyber' platform: 'Obvious Passwords', which focused on choosing secure passwords; and 'Deepfakes: The new wolves', a new take on Little Red Riding Hood that warns about the risks of impersonation through AI. We rolled out each of these initiatives, which combined an innovative narrative and practical guidance, across all our markets. • Local innovation. In Spain, we launched a dedicated WhatsApp channel for digital awareness, surpassing 30,000 followers in under one year. In Brazil and the UK, the Security Hub (part of the mobile app), provides interactive and accessible cybersecurity content. • Titania and Protocolo Alice. Our fiction podcast Titania, which won the Global Ondas Podcast Award for Best Branded Content, expanded its reach through the Brazilian version Protocolo Alice, exceeding 37 million views in 2025. In 2025, we continued to promote collaboration with public and private organizations on cybersecurity and online fraud prevention: • We continued to play a key role in the Financial Services Information Sharing and Analysis Center (FS-ISAC) for the exchange of cybersecurity information in Europe and remained a member of it European board. Headquartered in The Hague, the FS-ISAC has over 1,000 members from 174 entities, including major banks, Swift and Europol. • Santander is part of the leadership team of the US Ransomware Task Force, whose objective is to improve prevention and response capabilities against ransomware attacks. We helped set up the Brazilian Ransomware Task Force alongside the Government of Brazil and the Organization of American States, and are working on the same initiative in Mexico. • We contributed to World Economic Forum initiatives on cybersecurity and the fight against cybercrime. This includes taking part in ATLAS and Partnership Against Crime and in various working groups that focused on using AI to combat cybercrime, reducing the cybersecurity talent gap, and strengthening capabilities through public-private partnerships. • We’re part of several initiatives alongside such international organization as the Institute of International Finance (IIF), European Financial Services Round Table, European Banking Federation, DigitalEurope, and the European Cyber Security Organisation. • We organised the third Horizon Conference in London, bringing together over 100 organizations from 14 sectors for two days of collaboration and intersectoral crisis simulation exercises. • We play a global leadership role in the field of post-quantum security, as founder and current chair of the Europol Quantum Safe Financial Forum. Moreover, we play an active role in the main forums that outline the mechanisms of the transition, including FS-ISAC, G7 Cyber Experts Group, EFR, NIST, IIF, and Centre for European Policy Studies (CEPS). Annual report 202593 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 4. Business conduct #### (Governance information) #### 4.1 Corporate culture #### Our culture The Santander Way sets out the common standards and values we want to prevail across the Group. These are reflected in our Global Culture Policy. In 2025, we strengthened our culture by promoting new ways of working and professional development: 1.Deliver, Develop, Transform. In 2025, we launched three new principles that guide the way we work and lead at Santander. These principles, co-created with professionals across the Group, were initially rolled out to managers, with the ambition of extending them to the entire organization during 2026. They provide practical guidance for leading in an environment of constant transformation. 2. Learning and development: We have increased our efforts to give our employees the necessary tools and resources to enhance their skills and employability, aligning us with the most critical business and market demands. 3.We promote flexible and agile working models that enable our teams to grow and participate in transformational projects — such as the adoption of AI — to drive innovation and efficiency across the Group. 4.We foster an inclusive culture built on diverse and complementary teams. Our aim is for teams to reflect the diversity of the environments in which we operate. 5.We care for our people through a well-being strategy that promotes healthy habits and work–life balance. 6.We encourage our employees to take part in volunteering initiatives on financial education, inclusion, education, employability, entrepreneurship and other local needs. 7.Through YourVoice, we listen to our teams and implement action plans that help us continue to build the best place to work. | | | | | --- | --- | --- | | | | | | | | | | | Our behaviours TEAMS.gif | | | | | | | | | | | | Our principles → Deliver • Think ValueA • Think Customer B • Make the right decisions at the right time → Develop • Build high-performing teams • Set clear goals and provide feedback • Ensure a positive working environment → Transform • Lead change • Think Global C • Trust and collaborate • Foster a strategic mindset | | | | | | | | | | | | | | | | Our strong risk management culture RiskProLogo.gif | | | | | | | A. We want to become the leading bank across our footprint and to maximize shareholder value. B. We want to be our customer’s bank of choice. C. We’re building ONE Santander to harness our unique combination of global strength and local leadership. | | | 69 The Conflicts of Interest Policy has been updated to align it with the General Code of Conduct (updated in 2024) and to simplify it. In addition, the Procurement Management Conduct Policy has been integrated into this policy. Annual report 202594 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 4.2 Ethical conduct In this section we cover how Santander manages this IRO: | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | I+ | Act responsibly and consider investors’ interests and the impact on employees, broader society and the environment; pay taxes to support the distribution of wealth. | | | | | | | | | I- | Harm broader society through bribery or corruption. | | | | | | | | | R | Risk stemming from improper conduct that makes illicit funds or assets appear legitimate and, therefore, facilitates illegal activity or to benefit from it. | | | | | | | 4.2.1 #### Conduct standards Our General Code of Conduct (GCC) sets out the behaviours and values that all Grupo Santander employees must abide by when engaging with colleagues, customers, vendors and broader society. It helps promote a solid risk management and compliance culture and acts as a mechanism to prevent the risks we are exposed to. It is available on our corporate website for all stakeholders to read. The GCC promotes equal opportunity, non-discrimination, zero tolerance for sexual or work-related harassment, respect for others, work-life balance and human rights. The Grupo Santander board of directors approves the GCC, which all Group employees — general workforce, top management and members of the management bodies of the units that make up Grupo Santander — must be aware of and comply with. The GCC’s core implementation mechanisms are: i. mandatory training for employees on the GCC through an annual course that instils the guidelines they must follow in their day-to-day to prevent possible risks, such as the Group’s criminal responsibility; how to handle conflicts of interest according to our policy, 69and what to do if they receive gifts and invitations from people outside Grupo Santander. We supplement GCC training with a statement that reinforces our employees’ pledge to comply with it; ii. campaigns via email, Intranet and other media to boost employees’ awareness of the GCC, as well as of Canal Abierto and the latest whistleblower protection laws; iii. the Compliance area, which deals with employees’ queries on the enforcement of the GCC; iv. Canal Abierto, our whistleblowing channel where employees and stakeholders can report violations of the GCC and of our corporate behaviours; and v. Breaches to the GCC are managed and sanctioned in accordance with applicable regulations. Moreover, mandatory training forms part of our employees’ annual performance review, which acts as an incentive to complete it in due time. We also use another management metric to identify how many incidents reported to the Group’s ethical channels are linked to violations of the GCC. | | | | --- | --- | | | | | | For more details, see section [7.2 ‘Compliance and conduct risk](#i6ecb2a0d58d04b53bfadfa2a833efaa7_880) [management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_880)[’](#i6ecb2a0d58d04b53bfadfa2a833efaa7_880) in the ‘Risk management and compliance’ chapter. | #### 4.2.2 Responsible taxation The principles that guide the Group’s tax practices are consistent with its purpose and aligned with business strategy. The board of directors approves our tax strategy and revises it regularly. The Group’s tax risk management and control, which draws on our internal control model, sets out the actions to follow our tax strategy and the principles that underpin it. We participate in cooperative compliance initiatives that tax authorities run. Since 2010, we've adhered to the Spanish Code of Good Tax Practices and the UK Code of Practice on Taxation for Banks and, more recently, to the Portuguese Code of Good Tax Practices in 2022. Since 2015, we've voluntarily submitted an annual tax transparency report to Spain's tax authority. The principles of Grupo Santander’s tax strategy must enable us to make appropriate contributions according to the value creation in each of the markets where we operate, as well as to comply with local laws. #### Core principles of Santander’s tax strategy | | | --- | | | | | • Meet our tax obligations based on a reasonable interpretation of tax laws, grounded on their spirit and intention. • Respect the rules on transfer pricing and pay taxes in each market according to our operations, assumed risk, and profits. • Not give tax advice or planning strategies when marketing and selling financial products and services. Not engage in transactions or activities that enable unlawful tax avoidance by our customers. • Disclose Santander's total tax contribution clearly, distinguishing between taxes borne by the Group and by third parties in our core markets. • Not create, or acquire a stake in entities registered in countries or territories considered 'non-cooperative jurisdictions' without board approval; and properly monitor the Group's operations in such territories. | | | | --- | --- | | | | | | For more details on the Group’s tax strategy, see santander.com. | | | | --- | | | | | The Group’s tax contribution and the key role that our subsidiaries play in the effective application of  the tax systems of their respective markets are a vital component of the Group’s contribution to sustainable and inclusive growth. 70 People in special situations (non-exhaustive list): individuals living in extremely rural areas, those residing in care facilities or pensioners, people unable to manage their financial affairs, gender expression, students and young people, individuals living in shelters or refuges, prisoners and those on parole, international students, economic migrants, refugees, and isolated individuals. Annual report 202595 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | In 2025, the Group paid EUR 22.1 billion in taxes, of which EUR 9.6 billion account for taxes we paid directly to the tax authorities (46.3% of profit before taxes) and the rest in taxes collected from our business operations with third parties. The taxes the Group paid directly are part of the cash flow statement and mainly correspond to the income tax paid in 2025 (EUR 5 billion at an effective rate of 24.0%). There is usually a mismatch in the taxes we pay directly and those recorded in the financial statements because the payment date set by the laws of each country is often different to the accrual date of the income or the transactions subject to tax. The income tax expense recorded for the year amounts to EUR 5.1 billion, which means an effective rate of 24.9% (see Note [27](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1111) to the consolidated report). | | | | --- | --- | | | | | | For more details on the Group's tax contribution, see  SN [7.7 'Tax](#i6ecb2a0d58d04b53bfadfa2a833efaa7_262) [contribution](#i6ecb2a0d58d04b53bfadfa2a833efaa7_262)'. | 4.2.3 #### Financial crime compliance (FCC) Grupo Santander is firmly committed to the fight against financial crime and compliance with financial crime prevention regulation in every market where we operate. Our Group board-approved and unit-ratified  Corporate financial crime compliance (FCC) framework sets out the key principles for preventing financial crime, which underpin these programmes: the anti-money laundering and terrorism financing prevention programme (CFT); the sanctions programme; and, since 2023, the anti-bribery and anti-corruption programme (ABC). This framework is available to all employees and interested third parties. Moreover, we use information channels to raise awareness of the importance of financial crime compliance. We reach out to all our stakeholders through annual training programmes, communications channels (corporate and unit Intranet sites), awareness campaigns, internal newsletters and best practices so that they can learn about and understand their responsibilities across the Group’s entire operations. We draw up the policies that build on this framework (including customer due diligence — CDD — procedures)  according to domestic and international financial crime regulation to manage and mitigate the impacts and risks related to FCC and protect the Group’s integrity in all our businesses and operations. We constantly review and update our policies to remain consistent with regulatory amendments and new and ever-changing external threats. Moreover, we have a common oversight methodology that enables us to verify that all our operations comply with this framework under the most demanding, standardized criteria that the centralized and technical FCC function in our markets endorse. This function also plays a crucial role in promoting FCC culture and awareness to all Grupo Santander employees. The central and unit-based Financial Crime Prevention teams engage in constant dialogue with all the Group’s businesses and functions to identify new risk types, overcome emerging challenges to prevent those risks, and implement risk management, control and mitigation best practice. Some of the salient responsible banking topics to highlight are: People in special situations, and People trafficking and exploitation and environmental crime. | | | | --- | --- | | | | | | For more details on our provisions, see [Note 25](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1096) of this report. | #### People in special situations Our FCC onboarding supports the Group’s ambition to help people in special situations 70 get access to financial services and requires business units to mitigate the potential financial crime risk related to these groups, based on objective criteria and compliance with FCC regulation. Our mandatory FCC procedures (identification, risk segmentation and due diligence) for people in special situations to access banking services and the document updates we perform under our FCC framework are free of bias and subject to strict compliance with the law. Moreover, the Group has been and will continue to run remote and in-person onboarding that gives equal access and opportunity that best adapt to each customers’ circumstances. #### People trafficking and exploitation and environmental #### crime Our customer risk assessment considers the risks stemming from the sectors that our customers operate in. To categorize a sector, we consider exposure to corrupt practices, people trafficking, modern slavery, labour exploitation, child abuse and environmental crime. We subject these sectors to further know- your-customer due diligence to be absolutely sure of their level of exposure or link to those types of practices. We also have transaction control systems that enable us to detect irregular movements that may come from or be related to such practices. Grupo Santander plays an active role in public-private sector initiatives and specialist forums where we provide financial crime prevention knowledge, expertise and analysis. As a global bank that offers a wide range of financial products and services, we have a deep understanding of the risks related to our sector. We are firmly committed to the integrity of the financial system and the development of effective solutions to boost cooperation between the public and private sectors in tackling complex and global challenges. #### Bribery and corruption The Group reviewed and refined its ABC framework to strengthen its practical application and ensure clear accountability within the relevant functions, reinforcing a culture of integrity and responsible conduct. The Group conducts regular Risk and Control Self-Assessments (RCSA) across all units to identify and evaluate residual financial crime risks within the organization. This process assesses the inherent risks of business activities — including those related to money laundering, terrorist financing, bribery, corruption, and others — and the suitability of the controls in place to mitigate them. 71 The data reflect the Group’s aggregated annual metric 'Number of cases reported to the regulator or Suspicious Activity Reports (SARs)', where SARs refer to reports filed by a Financial Institution to notify the authorities of transactions or activities that may be linked to money laundering, terrorist financing, or other financial crimes. 72 Investigations refer to the analysis carried out by the Second Line of Defence (2LoD) of sensitive or potentially suspicious activities that do not result in a report to the authorities, as the analysis concludes that no further escalation is required (i.e. the activity is clarified and assessed as non-suspicious, or the authorities are already aware of the event). 73 Reference is made in this Sustainability statement to judicial and administrative proceedings that have reached a conclusion during 2025 with a firm conviction, sanction or fine against an entity of the Group and which are significant to the Group due to their materiality. Annual report 202596 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | In 2025, the Group continued to strengthen its awareness and training strategy through its Global Mandatory Training Programme, which ensures consistent coverage of all Financial Crime Compliance (FCC) risk areas, including (ABC). This programme combines foundational training for all employees with tailored sessions for specific functions and risk profiles. Additionally, the members of the board of directors also receive specialised training in this area. Training remains a key performance indicator of the Group’s commitment to mitigating bribery, corruption, and other financial crime risks, ensuring that all employees—across the first, second, and third lines of defence—understand their roles and responsibilities in managing FCC. As one of our KPIs, the number of employees we train in the Group highlights our firm commitment to mitigating bribery, corruption and other FCC risks. This covers all risk takers functions. In particular: ◦ 146,586 employees trained in FCC. | | | | --- | --- | | | | | | For more details  on this topic, see section [4.4 'Our suppliers'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_211) . | Detecting and managing FCC incidents In 2025, the Group maintained a robust system for detecting, investigating, and managing financial crime incidents, in full compliance with applicable FCC laws and regulations. Financial Intelligence Units (FIUs) across all markets continued to identify, assess, and report suspicious transactions — including those with potential indicators of bribery or corruption — to the competent authorities. This system is supported by clearly defined internal controls, independent investigation mechanisms, and governance structures designed to ensure impartial and effective incident management. The outcomes of investigations are regularly reported to the Group’s management and oversight bodies to ensure transparency and accountability. Highlights of key detection activities and cooperation with authorities’ in 2025 include: • 311,613 disclosures to authorities 71 • 503,838 investigations conducted 72 Moreover, our whistleblowing channel, which we manage according to the General Code of Conduct and Canal Abierto policy, is where individuals can report violations of laws and internal compliance regulations related to the fight against financial crime (FCC). In accordance with the established criteria 73, and consistent with 2024, no convictions, fines or sanctions were received in this reporting period for corruption or anti-bribery matters, nor for anti- money laundering and countering the financing of terrorism (AML/ CFT), that are considered material in the context of the Group’s activities. #### 4.3 Ethical channels In this section we cover how Santander manages these IROs: | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | I+ | Protection of the confidentiality of users of the bank’s ethical channel and have an effective reporting system in place that follows robust principles and procedures. | | | | | | | | | I- | Negative impact on the environment or broader society by failing to implement measures to resolve incidents through complaints or reporting channels or due to a lack of continuous improvement actions. | | | | | | | 4.3.1 Canal Abierto Canal Abierto is an anonymous and confidential Grupo Santander channel to report alleged unethical conduct. It protects whistleblowers by expressly prohibiting reprisals or any negative consequence against them. Every unit in the Group administers its own ethical channel according to the common standards set out in the Canal Abierto policy. Minimum standards applicable to all channels include communication to employees of the importance of using the channel; information on how incidents have been handled and lessons learned; easy access to the channel and anonymity (if desired); external providers to receive reports according to best practice; mechanisms to manage conflicts of interest in internal investigations of reports; and regular internal audits. The board of directors approved the Canal Abierto policy and the related use and operation procedure, and designated the Chief Compliance Officer to oversee Canal Abierto of Banco Santander. These policies and procedures are available to Group employees and stakeholders on our corporate website and the Canal Abierto platform. Canal Abierto is available to employees on Santander Now (Intranet) and to other persons legally entitled as provided by law through our corporate website and the Canal Abierto platform. Canal Abierto receives reports that cover conduct issues related to: → unlawful acts at the workplace; → irregularities or breaches of the General Code of Conduct (GCC) and its implementing regulation that may be subject to disciplinary action; 74 It refers to environmental, social, including human rights, and governance issues. These topics are listed in the EU Corporate Sustainability Reporting Directive (CSRD) 2022/2464 and its implementing legislation in Spain. 75 Reference is made in this Sustainability statement to judicial and administrative proceedings that have reached a conclusion during 2025 with a firm conviction, sanction or fine against an entity of the Group and which are significant to the Group due to their materiality. Annual report 202597 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | → improper accounting or auditing practices, internal control or influence on external auditors (Sarbanes-Oxley Act); → breaches of securities market regulations, → irregularities related to sustainability matters, 74 → infringements of anti-money laundering and terrorist financing regulations, internal procedures to ensure compliance with them, or bribery and corruption; → conduct that may involve an act that infringes the law or any other regulation and, in particular, a serious or very serious criminal or administrative offence or infringement of European Union law; and → acts or conduct that go against the Group’s corporate behaviours. Santander handle reports received through Canal Abierto in a diligent, independent and objective manner for the benefit of the parties involved. The following criteria, which we set out in the Group’s Canal Abierto policy, reflect that pledge: → Appropriate handling of the reports received, notwithstanding their possible rejection should they fall under any of the cases provided for in internal regulations or if it is considered that there are no grounds for a case. → 60-day processing time, which could be extended by up to 30 days for cases that are considered especially complex. → Conflict of interest management during the investigation of cases, in which anyone who may have a conflict of interest with the persons involved in the matter will refrain from taking part. The usage and operation procedure details the teams tasked with investigating each case in relation to the type of report. → The prohibition of reprisals against employees or other stakeholders who report, in good faith, breaches of internal or external regulations or conduct that does not align with our corporate behaviours, for having merely accessed an ethical channel. Every year, our employees undertake a mandatory training course on the General Code of Conduct (GCC) that includes a module on the importance of using Canal Abierto. Moreover, we raise awareness of Canal Abierto among our employees on the handling of the reports received, the channel’s features, when to use it, and other information. Every year, the compliance function prepares a report for the risk supervision, regulation and compliance committee and the audit committee to informing their members about the activity of the Group’s channels, key statistics, and other matters related to Canal Abierto. With the aim of providing a holistic view of incidents related to the GCC, this report has been enhanced by including more granularity and transparency of the information including data of incidents related to the GCC coming from other sources different than Canal Abierto as well as breakdown of cases by Global Businesses. We collect data on the Group’s ethical channels every quarter in relation to the number and type of reports received, and the measures taken. An external auditor reviews those data regularly to ensure their traceability and integrity. In 2025, we received 4,507 reports, including 362 from third parties (307 from customers and 55 from vendors). | | | | | --- | --- | --- | | | | | | Canal Abierto | | | | | 2025 | 2024 | | Reports received | 4,507 | 4,437 | | reports received over total headcount | 2% | 2% | | Categories of received reports | | | | Breaches to the Code of ConductA | 2,432 | 2,286 | | HarassmentB | 975 | 1,094 | | Equality and fair treatment | 140 | 132 | | Breaches to corporate behaviours and labour regulationsC | 1,839 | 1,754 | | Other typesD | 236 | 397 | | | | | | Dismissals | 480 | 393 | | Dismissals over total headcount | 0.2% | 0.2% | A. Includes but is not limited to harassment, equality and fair treatment, conflicts of interest and activities outside the Group, privacy, information security and confidentiality of information, marketing of products and services and internal fraud, among others. B. Harassment, according to CSRD, is defined as a situation where unwanted conduct related to a protected ground of discrimination (for example, gender under Directive 2006/54/EC of the European Parliament and of the Council (15), or workplace harassment, among others) occurs with the purpose or effect of violating the dignity of a person, and of creating an intimidating, hostile, degrading, humiliating or offensive environment. C. Includes reports relative to breach of corporate behaviors, labour regulations and serious acts of disrespect. D. Includes unclassified cases and categories below de minimis thresholds (including external fraud and internal policy breaches). As in 2024, the Group has no record of any judicial proceedings initiated by employees or their representatives in relation to incidents of discrimination or breaches of fundamental rights, nor of any employee-related cases referring to serious human rights incidents that would be considered material to the Group. 75 76 Applicable in accordance with local regulations. 77 6% more than in 2024. 78 Main companies of the Group in: Argentina, Brazil, Chile, Colombia, Germany, Mexico, Portugal, Poland, Peru, Spain, United Kingdom, United States and Uruguay, and other geographies in which Digital Consumer Bank operates such as Italy and Nordics. 79 At year-end 2024, it was 15 days. 80 In line with the applicable methodological criteria defined by the Group, the average payment period has been calculated on the basis of invoices actually paid during the year. At year-end 2024, it was 81% 81 Reference is made in this Sustainability statement to judicial and administrative proceedings related to non-payment to suppliers which are ongoing at year-end 2025 and are relevant to the Group due to their materiality. Annual report 202598 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 4.4 Our suppliers In this section we cover how Santander manages these IROs: | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | I+ | Promotion of responsible practices among vendors; engage with them, assess their ESG performance and give them recommendations and tools to improve. | | | | | | | | | R | Potential risk from failing to ensure the operational resilience of the value chain by assessing vendors’ solvency, reputation and compliance with the law. | | | | | | | 4.4.1 #### Acting responsibly towards suppliers Our outsourcing and third-party management model and outsourcing strategy policy (which apply in all our markets) provide a methodology for our suppliers to comply with the Group’s minimum standards and with regulation to avoid risks that stem from substandard operational resilience, solvency, reputational control and regulatory compliance. Moreover, to promote responsible practices in our supply chain, we have a supplier ESG certification methodology 76 that aims to identify the suppliers that pose the greatest risk in terms of sustainability. This methodology also helps us determine which controls to adopt according to the risk identified. #### Sustainability in procurement The Group’s ESG supplier assessment methodology enables us to give our suppliers a final ESG risk classification as low, medium or high by adjusting the pre-classification with a survey that considers other factors such as country risk, number of employees, and company-specific environmental traits. As at 2025 year-end, we had assessed 876 suppliers identified with ESG risk. This assessment includes such ESG aspects as carbon footprint calculation, inclusion in terms of gender and people with disabilities, flexi-working, minimum wage and good governance practices, codes of conduct and anti-corruption policies, human and labour rights recognition, and other elements set out in international standards such as the United Nations Global Compact. Based on certification outcomes and where required, we supplement supplier assessments with remediation plans to ensure compliance with internal standards and applicable regulations. #### Other key aspects • The Group has a corporate tool to enhance and standardize the certification of higher risk suppliers in all our core markets as well as to review key risks such as cybersecurity, business continuity, physical security, facilities and data protection, anti- bribery and corruption and other additional risks. • We have made headway in embedding ESG standards in procurement negotiations and ESG risk assessments in line with the existing methodology, which continues to evolve to reflect regulatory changes and practical experience. • We’re working to extend our ethical channels for suppliers to the rest of our core markets. #### 4.4.2 Supplier payments practices EUR 12.3  billion paid to suppliers 77. 92% are local and account for 90% 78 of total procurement volume. The Group fully complies with the maximum payment terms prescribed by law. The current average payment period in the Group is 16 days 79 and 82% of invoices were paid by the deadline 80. In 2025, as in previous years, no significant differences were identified in payment terms across the existing supplier categories. Likewise, as in 2024, the Group has no record of any judicial or administrative proceedings related to non-payment to suppliers that would be considered material to the Group. 81 Annual report 202599 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Sustainability notes SN 1. Introduction, basis of the consolidated sustainability statement #### and other information #### a) Introduction This report is the 'Consolidated non-financial information statement and sustainability information' of Banco Santander, S.A. and its subsidiaries'. It provides detailed information in compliance with Directive (EU) 2022/2464, with regard to the presentation of information on sustainability by companies, prepared in accordance with the European Sustainability Reporting Standards (ESRS) framework, comprising Commission Delegated Regulation (EU) 2023/2772 and Commission Delegated Regulation (EU) 2025/1416, and in compliance with Law 11/2018, which amends Article 49 of the Commercial Code, and the Regulation on European Taxonomy (Regulation (EU) 2020/852 and Commission Delegated Regulations 2021/2139 and 2021/2178 as amended by Delegated Regulations (EU) 2022/1214, 2023/2485, 2023/2486 and 2026/73). Likewise, the information included in the section '[2](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) [Climate, our transition plan](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73)' allows the Group to address the requirements of Law 7/2021 on climate change and Royal Decree 214/2025 of the Spanish legal system. In relation to the information on the EU Taxonomy (including the Green Asset Ratio – GAR), and in accordance with the transitional regime set out in Commission Delegated Regulation (EU) 2026/73, the Group has opted to defer the application of the new templates until 2026, and therefore, for financial year 2025, it has continued to use the templates and disclosure requirements in force as at 31 December 2025. The Sustainability statement forms part of the consolidated directors’ report of Santander Group and the board of directors approved it on 25 February 2024. #### b) Scope of information The scope of this document covers the core activities of the Group and its subsidiaries from 1 January to 31 December 2024 and is prepared following the same consolidated basis (principles, accounting policies and criteria) as the financial statements and with the criteria differences set out in this table: | | | | | --- | --- | --- | | | | | | Topics | | Scope of information | | | | | | Climate, our transition plan (Environmental information) | | | | Supporting our customers in the green transition | | | | Green finance | | Corporate & Investment Banking. | | Financing of electric vehicles | | Digital Consumer Bank auto loan portfolio. | | Purchase of cards made of sustainable materials | | Main companies of the Group in: Argentina, Brazil, Chile, México, Poland, Portugal, Spain, United Kingdom and Uruguay. | | Embedding ESG in risk management | | | | Portfolio exposure to climatic sectors | | Full Group scope. | | Equator Principles | | Corporate & Investment Banking. | | Aiming to align our activity with the Paris Agreement Goals | | | | Climate alignment | | Corporate & Investment Banking for thermal coal, power generation, oil & gas, aviation, steel and auto manufacturing portfolios. Digital Consumer Bank for the auto loan portfolio. Commercial banking perimeter of Brazil for the agro portfolio (only soy, corn and beef cattle). And perimeter of commercial banking in Spain, United Kingdom and Portugal for the portfolio of residential mortgages and real estate. | | Environmental footprint | | Full Group scope. Except for the calculation of Scope 3 emissions (categories 1, 2, 4 and 9) for which the information of main companies of the Group in: Argentina, Brazil, Chile, Colombia, Germany, Mexico, Portugal, Poland, Peru, Spain, United Kingdom, United States and Uruguay, and other geographies in which Digital Consumer Bank operates such as Italy. | | EU Taxonomy | | | | Green Asset Ratio (GAR) | | Scope based on the prudential consolidated group, in accordance with the Commission Delegated Regulation (EU) 2021/2178. | | Supporting employees, communities and customers (social information) | | | | Acting responsibly towards our employees | | | | Headcount | | Full Group scope. | Annual report 2025100 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | Remuneration | | Full Group scope. | | Training | | Full Group scope. | | Employee engagement survey | | Full Group scope. | | Communities sustainable development | | | | SRI AuMs | | Wealth Management & Insurance: SAM and Private Banking. | | Support for higher education, employability and entrepreneurship | | Main companies of the Group in: Argentina, Brazil, Chile, Germany, Mexico, Poland, Portugal, Spain, United Kingdom, United States and Uruguay, as well as Foundations associated with the Group. | | Other community support programmes | | Main Group companies in: Argentina, Brazil, Chile, Colombia, Mexico, Perú, Poland, Portugal, Spain, United Kingdom, United States, Uruguay and the rest of the countries in which Digital Consumer Bank operates, as well as Foundations associated with the Group. | | Acting responsibly towards customers | | | | Customers, offices and channels | | Full Group scope. For digital customers, Openbank Mexico is excluded. | | NPS (customer satisfaction) | | Main Group companies in: Argentina, Brazil, Chile, Spain, United States, Mexico, Poland, Portugal, United Kingdom and Uruguay. | | Customer complaints | | All Group entities (>1% of reported claims volume in 2025). | | Financial health and inclusion | | Main companies of the Group in: Argentina, Brazil, Chile, Colombia, Mexico, Peru, Poland, Portugal, Spain, United Kingdom, United States, Uruguay and the rest of the countries in which Digital Consumer Bank operates. | | Business conduct (governance information) | | | | Corporate governance | | | | Corporate governance | | Banco Santander, S.A. | | Communications with shareholders and investors | | Banco Santander, S.A. | | Ethical conduct | | | | Mandatory training on the GCC | | Full Group scope. | | Tax contribution | | Full Group scope. | | Financial crime compliance | | Main Group companies with FCC obliged parties within the perimeter of Group Financial Crime Compliance. | | Litigation and penalties | | Full Group scope. | | Ethical channels | | | | Ethical channel | | Group companies in Argentina, Brazil, Chile, Spain, Mexico, Poland, Portugal, United Kingdom, United States, Uruguay, Colombia, Peru, Switzerland, Bahamas, and subsidiaries and branches of CIB, Consumer, PagoNxt and Wealth. | | Acting responsibly towards suppliers | | | | Payments to suppliers | | Main companies of the Group in: Argentina, Brazil, Chile, Colombia, Germany, Mexico, Portugal, Poland, Peru, Spain, United Kingdom, United States and Uruguay, and other geographies in which Digital Consumer Bank operates such as Italy and Nordics. | | Evaluated suppliers identified with ESG risk | | Main companies of the Group in: Argentina, Brazil, Chile, Colombia, Germany, Mexico, Portugal, Peru, Spain, United Kingdom and Uruguay, and other geographies in which Digital Consumer Bank operates such as Italy. | Information relating to Santander Bank Polska, S.A. and its subsidiaries (Santander Polska)—whose sale was completed on 9 January 2026—is presented in this sustainability statement on a combined basis with the other entities within Grupo Santander’s reporting perimeter, unlike in the financial statements, where the Group has reclassified the assets of Santander Polska and TFI in the consolidated balance sheet as of 31 December 2025, to the heading 'Non-current assets held for sale', and their liabilities to the heading 'Liabilities associated with non-current assets held for sale' (see note [3.b)](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1000) of financial statements). Where its contribution to the Group total is material, we will include, for information purposes, a footnote with Santander Polska specific figures. Significant changes in criteria with respect to the 2024 Sustainability Report are reflected in the corresponding section of this chapter, and generally in section h) of this note. For a list of subsidiaries included in the consolidation that are exempt from individual or consolidated sustainability reporting pursuant to article 19a or 29a(8) of Directive 2013/34/EU, see [Annex 1. Subsidiaries of Banco Santander, S.A.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1309) in the ‘Audit report and consolidated annual accounts'. Of this list, the following companies are required to report sustainability information under CSRD: • Santander Consumer Bank AS (in Norway) • Stellantis Banque France (in France) Additionally, Santander Consumer Bank Spólka Akcyjna (Poland) also meets the requirements to be subject to the obligation to prepare a sustainability statement; however, the transposition of the CSRD in Poland provides an exemption for subsidiary 82 Resources that develop and/or help create products and enable us to operate as a bank (e.g. employees; capital; buildings, offices and other physical infrastructure; technology; and others). Annual report 2025101 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | undertakings that are already included in their parent group’s consolidated sustainability statement. Other companies that meet the requirements established by the standard but are located in countries where the Directive has not been transposed are not considered obliged to report under the CSRD. Moreover, the Group has not applied the exemption in relation to the breakdown of information on upcoming events or matters under negotiation. From 1 January 2025 to the date on which we prepared this Consolidated non-Financial Information Statement, there were no additional events that could have a significant impact on the information set out in this report other than those described in the consolidated annual accounts. For more details, see Notes [1](#i6ecb2a0d58d04b53bfadfa2a833efaa7_949) , [2](#i6ecb2a0d58d04b53bfadfa2a833efaa7_970), [3](#i6ecb2a0d58d04b53bfadfa2a833efaa7_991) and [53](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1240) to the consolidated report and sections [3](#i6ecb2a0d58d04b53bfadfa2a833efaa7_664) and [4](#i6ecb2a0d58d04b53bfadfa2a833efaa7_691) of the ‘Economic and financial review’ chapter. #### c) Value chain Banco Santander has a defined value chain that identifies all the actors involved in it. It considers the entire consolidation scope set out in the bank’s annual report. This chart illustrates our value chain. It is split into three main groups (upstream, own operations and downstream) and shows the actors in each one: ![CadenadeValorENG.jpg]() To define the value chain, the Group considered the indications of Regulation 2022/2464 (paragraph 33); Delegated Regulation 2023/2772 (ESRS 1); and the EFRAG (European Financial Reporting Advisory Group) Value Chain Implementation Guidance. These are the definitions we used: Upstream: Set of activities or p rocesses carried out by companies that are part of the bank’s upstream phases and that provide the inputs 82 that we use for the development and marketing of products and services. This includes companies with which the bank has a direct and indirect commercial relationship. • Financial institutions: Monetary institution and public entity responsible for setting monetary policy that will impact on Banco Santander; regulating currency circulation; supervising the interbank market in which the bank operates; and providing liquidity, where required, for solvency purposes. For instance, the European Central Bank, Banco de España, Bundesbank, Narodowy Bank Polski, etc. • Product and service providers: Companies that provide products and services that are subsequently marketed in later phases of the bank’s value chain or that the bank uses to carry out its operations. For instance, insurance companies (e.g. suppliers of products that are marketed in the bank’s downstream phase), technology providers, external audit and consulting service providers, materials suppliers and office landlords. The Group continuously oversees the correct management and maintenance of its supplies to offer a high value added service to customers and to guarantee business continuity. Own operations : Activities that the bank’s functional areas and employees carry out in our markets and subsidiaries. • Assets : Assets and properties that the bank owns. For instance, tangible assets such as offices. • Geographies: Places where the bank and its subsidiaries carry out their operations. For instance, Brazil, Spain, United States, the United Kingdom, and Mexico. • Cross-cutting areas/functions: Departments and areas within the bank whose function is to manage and develop the bank’s operations. For instance, Compliance, Risk, Strategy, Human Resources, Procurement. 83 See sections [2.4.5 Our Environmental footprint](#i6ecb2a0d58d04b53bfadfa2a833efaa7_142) , [3.1.1 Talent and Skills Development](#i6ecb2a0d58d04b53bfadfa2a833efaa7_160) and [3.2.4 Community Support](#i6ecb2a0d58d04b53bfadfa2a833efaa7_184) for this chapter; and notes [46](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1189) and [47](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1204) of the Annual Accounts. Annual report 2025102 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Downstream: Commercial relationships and the products and services that the bank sells to meet the needs of its customers and end users. • Retail and Commercial Banking: focuses on meeting financial needs and offering a variety of products and services that are accessible and tailored to specific customer requirements. It integrates the retail banking business and commercial banking (individuals, SMEs and corporates), except private banking clients and business originated in the consumer finance and the cards businesses. For instance, savings accounts, mortgages, credit cards and financial services for SMEs. • Digital Consumer Bank:  aims to convert single product customers into complete banking customers through other products. This business comprises all business originated in the consumer finance companies, plus Openbank, Open Digital Services (ODS) and SBNA Consumer. For instance, auto loans and consumer loans. • Corporate & Investment Banking (CIB): offers products and services on a global scale to corporate and institutional customers, and collaborates with other global businesses to better serve our broad customer base. It includes Global Transaction Banking, Global Banking (Global Debt Financing and Corporate Finance) and Global Markets. For instance, advice on mergers and acquisitions (M&A), corporate finance, investment banking, asset management and risk management. • Wealth Management & Insurance (Wealth): provides specialized financial services to high net worth customers and those seeking to protect their assets through insurance. It includes the corporate unit of Private Banking and International Private Banking in Miami and Switzerland (Santander Private Banking), the asset management business (Santander Asset Management), the insurance business (Santander Insurance) and the unit that manages the investment platforms and stakes that complement Wealth's traditional business (the new vertical, Portfolio Investments). • Payments: comprises the Group's digital payments solutions, providing global technological solutions for our banks and new customers in the open market. It is structured in two businesses: PagoNxt (Getnet, Ebury and PagoNxt Payments) and Cards (cards platform and business in the countries where we operate). • Joint ventures, associates and other investments: Entities that are not globally integrated in the annual accounts but in which the Group has decision-making capacity over their operating activities that have not been previously considered in the value chain. • Retailers: Sales channels for companies in the final phases of the value chain that, through their own commercial network, are responsible for selling the bank’s products and services to their customers. For instance, car dealerships. #### d) Information not disclosed In response to the request set out below, the Group has disclosed partial information. It is not possible to make further disclosure because it is confidential and sensitive information on the Group's strategy • ESRS 2. Minimum Disclosure Requirement - Actions MDR-A - Actions and resources in relation to material sustainability matters. Paragraph 69 regarding disclosure of operating expenses (OpEx) or capital expenditure (CapEx) allocated to action plans. The Group discloses certain metrics such as staff costs (wages and salaries, social security contributions, provisions and contributions to pension funds, and other personnel expenses), energy efficiency initiatives and investment in community support, found in the corresponding sections of this report and our annual accounts. 83 There is no other classified or sensitive information, or information relating to intellectual property, know-how or innovation results, that the Group has not included in the report. #### e) Time horizons In preparing this Sustainability statement (including the analysis of double materiality), we used the following time horizons: • One year for the short term (this is the standard time horizon for the short term in the Group). • One to five years for the medium term (financial planning). • More than five years for the long term (strategic plan). These horizons coincide with those provided for by the ESRS standards. We expressly indicate the different time horizons we use for processes or metrics described in this report. #### f) Significant estimates and assumptions The Group discloses metrics that incorporate value chain information, which includes both direct data sources (from customers or investees) and estimated data from third-party data providers or sector averages. In some instances, these estimates draw on factors that the Group is unable to influence and that may have a significant impact on the information disclosed. The most significant estimates and assumptions relate to the Group’s disclosure of GHG emissions, the measurement of which is subject to considerable uncertainty due to methodology and data limitations, including reliance on third-party data. Our analysis and climate target-setting uses estimates based on the recognized frameworks available at the time. As methods and data evolve, our data sources and figures may become outdated, and updates to methodologies and assumptions could lead to different conclusions. Thus, greenhouse gas emission factors are expected to increase once data becomes available and the corresponding companies are included in the calculations. Climate-related targets, actions and initiatives require forward- looking parameters and long-term horizons. Our forward-looking statements reflect our current view of future events and are based on expectations, projections and estimations. These involve significant uncertainty and risk due to such factors as scientific developments, methodology developments, standards variation, future market conditions and technological advances (which vary across industries), as well as challenges in data availability and Annual report 2025103 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | accuracy and regulatory changes. These assessments must evolve and should not be considered reliable indicators of future performance. We expect improvements in data quality, coverage and availability in the coming years, driven by increased sustainability information reporting and disclosure obligations and other elements. We also expect new guidance, industry standards and scientific research in this area. For that reason, Grupo Santander reserves the right to review and update its targets, methodologies and approach regularly and as necessary. The disclosure of EU Taxonomy reporting is also subject to uncertainty over data quality and the use of third-party data. For more details, see section [NS 5. EU Taxonomy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_235) of this Sustainability Statement. g) Comparative information, changes in the preparation or #### presentation of sustainability information In 2025; we refined our climate-alignment approach to better reflect the realities of the markets and regions where we operate, and to incorporate the latest scientific evidence as well as the economic and regulatory contexts relevant to our activity. • Portfolio alignment. We updated our sectoral alignment targets, introducing target ranges that use a weighted average of the International Energy Agency (IEA) regional scenarios to reflect our geographic footprint. In the oil & gas sector, we also updated our methodology, moving from absolute financed emissions to two intensity-based metrics: (i) an alignment target for operational emissions intensity (Scopes 1+2) and (ii) monitoring of the primary energy index (see further detail below). • Portfolio monitoring. • We began tracking the primary energy index, which reflects the carbon intensity of our global energy supply portfolio. • Aviation moves from target to monitoring given its declining portfolio alignment materiality and the strong dependence on policy and technological developments. • The mortgage and commercial real estate portfolios now also include Portugal (2024). • Santander Brasil’s agriculture portfolio, from 2024 and based on materiality criteria, includes only soy, corn and beef cattle. The 2023 figure has been recalculated to ensure comparability. For further information, see sections ‘[2.4 Aiming to align our](#i6ecb2a0d58d04b53bfadfa2a833efaa7_127) [activity with the Paris Agreement Goals](#i6ecb2a0d58d04b53bfadfa2a833efaa7_127)’ and ‘[NS 4. Climate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_232) [transition plan](#i6ecb2a0d58d04b53bfadfa2a833efaa7_232)’. Additionally, we evolved the taxonomy used to classify the community support and people and organisations supported through local community support initiatives. Therefore, the breakdowns by typologies for 2025 are not comparable with the information reported in 2024. The Group-level total, however, is comparable. For further information, see section ‘[NS 7.6](#i6ecb2a0d58d04b53bfadfa2a833efaa7_259) [Community support](#i6ecb2a0d58d04b53bfadfa2a833efaa7_259)’. Regarding information disclosed in previous periods, the Group identified an interpretation error in Brazil in applying the corporate methodology and calculation criteria for the Scope 1 greenhouse gas (GHG) emissions metric, which has a significant impact on the Group’s 2024 consolidated figure. After consistently applying the corporate methodology, 2024 Scope 1 emissions increase from 35,503 tCO₂e to 40,670 tCO₂e, equivalent to a 14.6% increase for this scope, which is also reflected in the Group’s total emissions. For further information, see section ‘[NS 7.1 Green transition](#i6ecb2a0d58d04b53bfadfa2a833efaa7_244)’ (Table 3. Gross GHG emissions Scopes 1, 2 and 3 and total GHG emissions). #### h) Incorporation by reference This report includes all the information necessary to comply with the requirements established in the ESRS, except in those cases in which such information is already included in the Group's audit report and consolidated annual accounts. In these cases, which are detailed below, the disclosure will be made by reference to that report. • ESRS 2 - Disclosure requirement BP-1, paragraph 5.b).ii. Reference is made to [Appendix I](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1309) of the Group's consolidated annual accounts and audit report for the list of subsidiaries of Banco Santander, S.A. • ESRS 2 - Disclosure Requirement SBM-3, paragraph 48.d). Reference is made to note [25.e)](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1105) of the Group's consolidated annual accounts and audit report to complete the information relating to the financial effects derived from the amount of convictions or penalties. As well as to note [54](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1243), which provides a breakdown of climate risk management. • ESRS 2. Minimum Disclosure Requirement - Actions MDR-A - Actions and resources in relation to material sustainability matters. Paragraph 69 regarding disclosure of operating expenses (OpEx) or CapEx allocated to action plans. Reference is made to notes [46](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1189) and [47](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1204) of the Group's audit report and consolidated annual accounts for more details on the connection of sustainability information with annual accounts information. • ESRS 2 - Minimum Disclosure Requirement - MDR-M parameters, in relation to the positive impact of 'Act responsibly and consider investors’ interests and the impact on employees, broader society and the environment; pay taxes to support the distribution of wealth'. Reference is made to note [27](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1111) of the Group's audit report and consolidated annual accounts for more details on the Group's tax information. • ESRS S1 - Disclosure Requirement S1-17, paragraphs 103(c), 104(b) and AR 105. Reference is made to note [25.e)](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1105) of the Group's annual report and Consolidated Financial Statements to complete the disclosures regarding serious human rights incidents involving the company's personnel. • ESRS S3 - Disclosure Requirements S3-1, paragraph 17 and AR 12; and S3-4, paragraph 36. Reference is made to note [25.e)](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1105) of the Group's Consolidated annual report and Accounts for supplementary information on serious human rights incidents relating to affected groups. • ESRS S4 - Disclosure Requirements S4-4, paragraph 35. Reference is made to note [25.e)](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1105) of the Group's Consolidated annual report and Accounts for supplementary information on serious human rights incidents relating to consumers or end- users. • ESRS G1- G1-4, paragraphs 24.a) and 25.d). Reference is made to note [25.e)](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1105) of the Group's annual report and Consolidated Annual report 2025104 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Financial Statements to complete the information regarding convictions and fines for breaches of anti-corruption and anti- bribery laws. Sustainability note [11. 'Directive (EU) 2022/2464 content index](#i6ecb2a0d58d04b53bfadfa2a833efaa7_274)' provides the sections of this report and of the Group's annual report and Consolidated Financial Statements where the information that responds to each of the requirements defined by the ESRS can be found. #### i) Use of phase-in provisions in accordance with Appendix #### C of ESRS 1 The following table details those requirements for which Grupo Santander has opted to continue not disclosing in accordance with the Commission's delegated regulation (EU) 2025/1416, which amends the previous Delegated Regulation (EU) 2023/2772. | | | | | --- | --- | --- | | | | | | Disclosure requirements not reported due to phase-in provisions (ESRS 1 Appendix C) | | | | ESRS | Disclosure requirement | Description | | ESRS 2 | SBM-1, paragraph 40, b( and c) | Total revenue/Revenue by significant ESRS Sectors | | ESRS 2 | SBM-3, paragraph 48 e) | Potential financial effects | | ESRS E1 | E1-9 | Potential financial effects from material physical and transition risks and potential climate- related opportunities | | ESRS S1 | S1-7 | Characteristics of non-employee workers in the undertaking’s own workforce | | ESRS S1 | S1-14 | Health and safety: information on non-employee workers | | ESRS S1 | S1-15 | Work-life balance | Annual report 2025105 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### List of datapoints in cross-cutting and topical standards that derive from other EU legislation The table below illustrates the data points covered by ESRS 2 and the thematic ESRS derived from other EU legislation. For each data point, in the last column, it is indicated whether or not it is material and if it is, where in the report the information is located. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Disclosure Requirement and related datapoint | SFDR (1) reference | Pillar 3 (2) reference | Benchmark Regulation (3) reference | EU Climate Law (4) reference | Materiality of the data point and location in the report | | ESRS 2 GOV-1 Board's gender diversity paragraph 21 (d) | Indicator number 13 of Table #1 of Annex 1 | | Commission Delegated Regulation (EU) 2020/1816 (5), Annex II | | Sustainability notes. [SN2. Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_223) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_223) | | ESRS 2 GOV-1 Percentage of board members who are independent paragraph 21 (e) | | | Delegated Regulation (EU) 2020/1816, Annex II | | Sustainability notes. [SN2. Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_223) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_223) | | ESRS 2 GOV-4 Statement on due diligence paragraph 30 | Indicator number 10 Table #3 of Annex 1 | | | | [1. Sustainability at](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) [Santander](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) [1.4 Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_70) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_70) (1.4.2 Human rights due diligence) | | ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities paragraph 40 (d) i | Indicators number 4 Table #1 of Annex 1 | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 (6) Table 1: Qualitative information on Environmental risk and Table 2: Qualitative information on Social risk | Delegated Regulation (EU) 2020/1816, Annex II | | Sustainability notes. [SN 11. Commission](#i6ecb2a0d58d04b53bfadfa2a833efaa7_274) [Delegated Regulation](#i6ecb2a0d58d04b53bfadfa2a833efaa7_274) [(EU) 2023/2772 on](#i6ecb2a0d58d04b53bfadfa2a833efaa7_274) [sustainability reporting](#i6ecb2a0d58d04b53bfadfa2a833efaa7_274) [standards content](#i6ecb2a0d58d04b53bfadfa2a833efaa7_274) [index](#i6ecb2a0d58d04b53bfadfa2a833efaa7_274) (SBM-1 – Strategy, business model and value chain) | | ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii | Indicator number 9 Table #2 of Annex 1 | | Delegated Regulation (EU) 2020/1816, Annex II | | Not material | | ESRS 2 SBM-1 Involvement in activities related to controversial weapons paragraph 40 (d) iii | Indicator number 14 Table #1 of Annex 1 | | Delegated Regulation (EU) 2020/1818 (7), Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II | | Not material | | ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv | | | Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II | | Not material | | ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14 | | | | Regulation (EU) 2021/1119, Article 2(1) | [2. Climate transition](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) [plan](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) Sustainability notes. [SN 4. Climate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_232) [transition plan](#i6ecb2a0d58d04b53bfadfa2a833efaa7_232) | | ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g) | | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book-Climate Change transition risk: Credit quality of exposures by sector, emissions and residual maturity | Delegated Regulation (EU) 2020/1818, Article12.1 (d) to (g), and Article 12.2 | | Sustainability notes. [SN 4. Climate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_232) [transition plan](#i6ecb2a0d58d04b53bfadfa2a833efaa7_232) | Annual report 2025106 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Disclosure Requirement and related datapoint | SFDR (1) reference | Pillar 3 (2) reference | Benchmark Regulation (3) reference | EU Climate Law (4) reference | Materiality of the data point and location in the report | | ESRS E1-4 GHG emission reduction targets paragraph 34 | Indicator number 4 Table #2 of Annex 1 | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics | Delegated Regulation (EU) 2020/1818, Article 6 | | [2. Climate transition](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) [plan](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) [2.4 Aiming to align our](#i6ecb2a0d58d04b53bfadfa2a833efaa7_127) [activity with the Paris](#i6ecb2a0d58d04b53bfadfa2a833efaa7_127) [Agreement Goals](#i6ecb2a0d58d04b53bfadfa2a833efaa7_127) Sustainability notes. [SN 4. Climate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_232) [transition plan](#i6ecb2a0d58d04b53bfadfa2a833efaa7_232) | | ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38 | Indicator number 5 Table #1 and Indicator n. 5 Table #2 of Annex 1 | | | | Not material | | ESRS E1-5 Energy consumption and mix paragraph 37 | Indicator number 5 Table #1 of Annex 1 | | | | Sustainability notes. [SN 7.1 Green transition](#i6ecb2a0d58d04b53bfadfa2a833efaa7_244) (Table 2. Environmental footprint) | | ESRS E1-5 Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43 | Indicator number 6 Table #1 of Annex 1 | | | | Not material | | ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44 | Indicators number 1 and 2 Table #1 of Annex 1 | Article 449a; Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book – Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity | Delegated Regulation (EU) 2020/1818, Article 5(1), 6 and 8(1) | | Sustainability notes. [SN 7.1 Green transition](#i6ecb2a0d58d04b53bfadfa2a833efaa7_244) (Table 3. Gross scopes 1, 2, 3 and total GHG emissions) | | ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55 | Indicators number 3 Table #1 of Annex 1 | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics | Delegated Regulation (EU) 2020/1818, Article 8(1) | | Sustainability notes. [SN 7.1 Green transition](#i6ecb2a0d58d04b53bfadfa2a833efaa7_244) (Table 3. Gross scopes 1, 2, 3 and total GHG emissions) | | ESRS E1-7 GHG removals and carbon credits paragraph 56 | | | | Regulation (EU) 2021/1119, Article 2(1) | Sustainability notes. [SN 7.1 Green transition](#i6ecb2a0d58d04b53bfadfa2a833efaa7_244) (Table 3. Gross scopes 1, 2, 3 and total GHG emissions) | | ESRS E1-9 Exposure of the benchmark portfolio to climate-related physical risks paragraph 66 | | | Delegated Regulation (EU) 2020/1818, Annex II Delegated Regulation (EU) 2020/1816, Annex II | | Phase-in (partially) [2. Climate transition](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) [plan](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) [2.3.4 Potential](#i6ecb2a0d58d04b53bfadfa2a833efaa7_121) [financial effects](#i6ecb2a0d58d04b53bfadfa2a833efaa7_121) | Annual report 2025107 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Disclosure Requirement and related datapoint | SFDR (1) reference | Pillar 3 (2) reference | Benchmark Regulation (3) reference | EU Climate Law (4) reference | Materiality of the data point and location in the report | | ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a) ESRS E1-9 Location of significant assets at material physical risk paragraph 66 (c). | | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraphs 46 and 47; Template 5: Banking book - Climate change physical risk: Exposures subject to physical risk. | | | Phase-in (partially) [2. Climate transition](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) [plan](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) [2.3.4 Potential](#i6ecb2a0d58d04b53bfadfa2a833efaa7_121) [financial effects](#i6ecb2a0d58d04b53bfadfa2a833efaa7_121) | | ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy-efficiency classes paragraph 67 (c). | | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraph 34; Template 2:Banking book -Climate change transition risk: Loans collateralised by immovable property - Energy efficiency of the collateral | | | Phase-in (partially) [2. Climate transition](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) [plan](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) [2.3.4 Potential](#i6ecb2a0d58d04b53bfadfa2a833efaa7_121) [financial effects](#i6ecb2a0d58d04b53bfadfa2a833efaa7_121) | | ESRS E1-9 Degree of exposure of the portfolio to climate- related opportunities paragraph 69 | | | Delegated Regulation (EU) 2020/1818, Annex II | | Phase-in | | ESRS E2-4 Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28 | Indicator number 8 Table #1 of Annex 1 Indicator number 2 Table #2 of Annex 1 Indicator number 1 Table #2 of Annex 1 Indicator number 3 Table #2 of Annex 1 | | | | Not material | | ESRS E3-1 Water and marine resources paragraph 9 | Indicator number 7 Table #2 of Annex 1 | | | | Not material | | ESRS E3-1 Dedicated policy paragraph 13 | Indicator number 8 Table 2 of Annex 1 | | | | Not material | | ESRS E3-1 Sustainable oceans and seas paragraph 14 | Indicator number 12 Table #2 of Annex 1 | | | | Not material | | ESRS E3-4 Total water recycled and reused paragraph 28 (c) | Indicator number 6.2 Table #2 of Annex 1 | | | | Not material | | ESRS E3-4 Total water consumption in m 3  per net revenue on own operations paragraph 29 | Indicator number 6.1 Table #2 of Annex 1 | | | | Not material | | ESRS 2- SBM 3 - E4 paragraph 16 (a) i | Indicator number 7 Table #1 of Annex 1 | | | | Not material | | ESRS 2- SBM 3 - E4 paragraph 16 (b) | Indicator number 10 Table #2 of Annex 1 | | | | Not material | | ESRS 2- SBM 3 - E4 paragraph 16 (c) | Indicator number 14 Table #2 of Annex 1 | | | | Not material | | ESRS E4-2 Sustainable land / agriculture practices or policies paragraph 24 (b) | Indicator number 11 Table #2 of Annex 1 | | | | Not material | Annual report 2025108 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Disclosure Requirement and related datapoint | SFDR (1) reference | Pillar 3 (2) reference | Benchmark Regulation (3) reference | EU Climate Law (4) reference | Materiality of the data point and location in the report | | ESRS E4-2 Sustainable oceans / seas practices or policies paragraph 24 (c) | Indicator number 12 Table #2 of Annex 1 | | | | Not material | | ESRS E4-2 Policies to address deforestation paragraph 24 (d) | Indicator number 15 Table #2 of Annex 1 | | | | Not material | | ESRS E5-5 Non-recycled waste paragraph 37 (d) | Indicator number 13 Table #2 of Annex 1 | | | | Not material | | ESRS E5-5 Hazardous waste and radioactive waste paragraph 39 | Indicator number 9 Table #1 of Annex 1 | | | | Not material | | ESRS 2- SBM3 - S1 Risk of incidents of forced labour paragraph 14 (f) | Indicator number 13 Table #3 of Annex I | | | | Not material | | ESRS 2- SBM3 - S1 Risk of incidents of child labour paragraph 14 (g) | Indicator number 12 Table #3 of Annex I | | | | Not material | | ESRS S1-1 Human rights policy commitments paragraph 20 | Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex I | | | | [1. Sustainability at](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) [Santander](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) (1.4.2 Human rights due diligence) | | ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 21 | | | Delegated Regulation (EU) 2020/1816, Annex II | | [3.1 Our employees](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) - Cross reference to: [1. Sustainability at](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) [Santander](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) (1.4.2 Human rights due diligence) | | ESRS S1-1 Processes and measures for preventing trafficking in human beings paragraph 22 | Indicator number 11 Table #3 of Annex I | | | | Not material | | ESRS S1-1 Workplace accident prevention policy or management system paragraph 23 | Indicator number 1 Table #3 of Annex I | | | | [3.1 Our employees](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) [3.1.2 Working](#i6ecb2a0d58d04b53bfadfa2a833efaa7_163) [conditions](#i6ecb2a0d58d04b53bfadfa2a833efaa7_163) (i. Employee health and well-being) | | ESRS S1-3 Grievance/complaints handling mechanisms paragraph 32 (c) | Indicator number 5 Table #3 of Annex I | | | | [3.1 Our employees](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) [3.1.4 Employee](#i6ecb2a0d58d04b53bfadfa2a833efaa7_169) [feedback and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_169) [experience](#i6ecb2a0d58d04b53bfadfa2a833efaa7_169) | | ESRS S1-14 Number of fatalities and number and rate of work- related accidents paragraph 88 (b) and (c) | Indicator number 2 Table #3 of Annex I | | Delegated Regulation (EU) 2020/1816, Annex II | | Sustainability notes. [SN 7.3 Employees](#i6ecb2a0d58d04b53bfadfa2a833efaa7_250) (Table 20. Occupational health & safety) | | ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e) | Indicator number 3 Table #3 of Annex I | | | | Sustainability notes. [SN 7.3 Employees](#i6ecb2a0d58d04b53bfadfa2a833efaa7_250) (Table 20. Occupational health & safety) | | ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a) | Indicator number 12 Table #1 of Annex I | | Delegated Regulation (EU) 2020/1816, Annex II | | Sustainability notes. [SN 7.3 Employees](#i6ecb2a0d58d04b53bfadfa2a833efaa7_250) (Table 14. Remuneration ratios) | | ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b) | Indicator number 8 Table #3 of Annex I | | | | Sustainability notes. [SN 7.3 Employees](#i6ecb2a0d58d04b53bfadfa2a833efaa7_250) (Table 14. Remuneration ratios) | Annual report 2025109 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Disclosure Requirement and related datapoint | SFDR (1) reference | Pillar 3 (2) reference | Benchmark Regulation (3) reference | EU Climate Law (4) reference | Materiality of the data point and location in the report | | ESRS S1-17 Incidents of discrimination paragraph 103 (a) | Indicator number 7 Table #3 of Annex I | | | | [3.1 Our employees](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) [3.1.3 Inclusive culture](#i6ecb2a0d58d04b53bfadfa2a833efaa7_166) [4. Business conduct](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199) [4.2 Ethical conduct](#i6ecb2a0d58d04b53bfadfa2a833efaa7_205) | | ESRS S1-17 Non- respect of UNGPs on Business and Human Rights and OECD paragraph 104 (a) | Indicator number 10 Table #1 and Indicator n. 14 Table #3 of Annex I | | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818 Art 12 (1) | | [3.1 Our employees](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) [3.1.3 Inclusive culture](#i6ecb2a0d58d04b53bfadfa2a833efaa7_166) [4. Business conduct](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199) [4.2 Ethical conduct](#i6ecb2a0d58d04b53bfadfa2a833efaa7_205) | | ESRS 2- SBM3 – S2 Significant risk of child labour or forced labour in the value chain paragraph 11 (b) | Indicators number 12 and n. 13 Table #3 of Annex I | | | | Not material | | ESRS S2-1 Human rights policy commitments paragraph 17 | Indicator number 9 Table #3 and Indicator n. 11 Table #1 of Annex 1 | | | | Not material | | ESRS S2-1 Policies related to value chain workers paragraph 18 | Indicator number 11 and n. 4 Table #3 of Annex 1 | | | | Not material | | ESRS S2-1 Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 19 | Indicator number 10 Table #1 of Annex 1 | | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) | | Not material | | ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 19 | | | Delegated Regulation (EU) 2020/1816, Annex II | | Not material | | ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36 | Indicator number 14 Table #3 of Annex 1 | | | | Not material | | ESRS S3-1 Human rights policy commitments paragraph 16 | Indicator number 9 Table #3 of Annex 1 and Indicator number 11 Table #1 of Annex 1 | | | | Not material | | ESRS S3-1 non-respect of UNGPs on Business and Human Rights, ILO principles or and OECD guidelines paragraph 17 | Indicator number 10 Table #1 Annex 1 | | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) | | Not material | | ESRS S3-4 Human rights issues and incidents paragraph 36 | Indicator number 14 Table #3 of Annex 1 | | | | Not material | | ESRS S4-1 Policies related to consumers and end-users paragraph 16 | Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1 | | | | [3.3 Our customers](#i6ecb2a0d58d04b53bfadfa2a833efaa7_187) | | ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17 | Indicator number 10 Table #1 of Annex 1 | | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) | | [3.3 Our customers](#i6ecb2a0d58d04b53bfadfa2a833efaa7_187) - Cross reference to: [1. Sustainability at](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) [Santander](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) (1.4.2 Human rights due diligence) | 84 The figures have not changed compared with 2024. 85 The diversity ratio is calculated by dividing the number of women by men. The figure has not changed compared with 2024.The percentage of each gender vs. total membership is 40% women and 60% men. Annual report 2025110 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Disclosure Requirement and related datapoint | SFDR (1) reference | Pillar 3 (2) reference | Benchmark Regulation (3) reference | EU Climate Law (4) reference | Materiality of the data point and location in the report | | ESRS S4-4 Human rights issues and incidents paragraph 35 | Indicator number 14 Table #3 of Annex 1 | | | | Not material | | ESRS G1-1 United Nations Convention against Corruption paragraph 10 (b) | Indicator number 15 Table #3 of Annex 1 | | | | [4. Business conduct](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199) [4.2 Ethical conduct](#i6ecb2a0d58d04b53bfadfa2a833efaa7_205) (4.2.3 Financial crime compliance) | | ESRS G1-1 Protection of whistle- blowers paragraph 10 (d) | Indicator number 6 Table #3 of Annex 1 | | | | [4. Business conduct](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199) [4.3 Ethical channels](#i6ecb2a0d58d04b53bfadfa2a833efaa7_208) | | ESRS G1-4 Fines for violation of anti- corruption and anti-bribery laws paragraph 24 (a) | Indicator number 17 Table #3 of Annex 1 | | Delegated Regulation (EU) 2020/1816, Annex II) | | [4. Business conduct](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199) [4.2 Ethical conduct](#i6ecb2a0d58d04b53bfadfa2a833efaa7_205) (4.2.3 Financial crime compliance) | | ESRS G1-4 Standards of anti- corruption and anti- bribery paragraph 24 (b) | Indicator number 16 Table #3 of Annex 1 | | | | [4. Business conduct](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199) [4.2 Ethical conduct](#i6ecb2a0d58d04b53bfadfa2a833efaa7_205) (4.2.3 Financial crime compliance) | (1) Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector (Sustainable Finance Disclosures Regulation) (OJ L 317, 9.12.2019, p. 1). (2) Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (Capital Requirements Regulation 'CRR') (OJ L 176, 27.6.2013, p. 1). (3) Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments  and  financial  contracts or  to  measure  the  performance  of  investment  funds  and  amending  Directives  2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1). (4) Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1). (5) Commission  Delegated  Regulation  (EU)  2020/1816  of  17  July  2020  supplementing  Regulation  (EU)  2016/1011  of  the  European Parliament and of the Council as regards the explanation in the benchmark statement of how environmental, social and governance factors are reflected in each benchmark provided and published (OJ L 406, 3.12.2020, p. 1). (6) Commission Implementing Regulation (EU) 2022/2453 of 30 November 2022 amending the implementing technical standards laid down  in  Implementing  Regulation (EU)  2021/637  as  regards  the  disclosure  of  environmental,  social  and  governance  risks (OJ L 324,19.12.2022, p.1.). (7) Commission  Delegated  Regulation  (EU)  2020/1818  of  17  July  2020  supplementing  Regulation  (EU)  2016/1011  of  the  European Parliament and of the Council as regards minimum standards for EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks (OJ L 406, 3.12.2020, p. 17). SN 2. Sustainability governance #### Board of directors It consist of 15 members, of which 13 are non-executive directors and 2 are executive directors. The majority are independent directors (66.67% of the total members of the council). 84 Our policy on the selection, suitability assessment and succession of directors promotes a robust balance of technical skills, experience and diversity in terms of gender, age, geographic origin, career path and knowledge. It also ensures that selection procedures are free from implicit biases that could result in any form of discrimination on grounds such as disability, race or ethnic origin. The board currently has a balanced presence of both genders (women -men) with a diversity ratio of 67%. 85 In terms of geographical origin/ international track record, 93% of the directors come from, studied or have international experience in continental Europe, US/UK, 60% also in Latin America, and 33% in other regions. The Board also has extensive international experience, mainly in the markets where we operate (European market, US and UK markets, and Latin American markets). The Board also has the skills and experience to monitor materiality issues (e.g. on issues related to sustainability, human resources, culture, talent and remuneration, as well as to business conduct and risk management). For more details, see ['Board skills and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_520) [diversity matrix'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_520) in the 'Corporate governance' chapter. None of the directors are currently assigned a specific employee representation role. The board of directors as the highest decision-making body in the Group performs the following functions: • approves the Responsible Banking agenda and set the strategy; • approves the culture policy and related policies on responsible business and sustainability matters and, in particular, on environmental and social matters; • supervise that the responsible banking strategy is consistent with Group strategy; • reviews the performance against the public objectives and that the metrics are covered within the responsible banking agenda; • tracks key initiatives; and • reviews subsidiaries’ strategies. Annual report 2025111 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | For more details, see the Rules and Regulations of the board of Directors, available on the Group's corporate website; and section [4.2 'Board composition](#i6ecb2a0d58d04b53bfadfa2a833efaa7_511)' in the 'Corporate governance' chapter. #### Responsible banking, sustainability and cultural #### committee The responsible banking, sustainability and cultural committee (RBSCC)  assists the board in fulfilling its supervisory responsibilities regarding the responsible business strategy and sustainability issues of Banco Santander and its Group. In particular, it has, among others, the following functions: (i) advise the board on the design of the strategy and policies on responsible business and sustainability, in particular environmental and social matters, and supervise the monitoring and evaluation of them; (ii) advise the board of directors on formulating the Group’s strategy for its relationships with stakeholders, and oversee stakeholder engagement and corporate reputation, analysing and reporting to the board on social, environmental and sustainability matters, as well as responsible and ethical conduct; (iii) ensure that adequate control processes are in place for responsible banking practices, and that sustainability-related risks and opportunities are identified and managed, in coordination with the other board committees, as appropriate; (iv) to report regularly to the board on the progress made by the Group on responsible business practices and sustainability. The responsible banking, sustainability and culture committee consists of five independent directors, 80% of whom are women. All of them have been appointed by the board of directors taking into account their knowledge, qualifications and experience in the areas for which the committee is responsible. Thus, its members have competence in issues relevant to this function as strategy and human resources, culture, talent and remuneration, responsible business and sustainability, risk management and also in issues related to education and universities. In 2025, the committee held four meetings. In addition, resolutions in writing were adopted on one occasion without a session being held. The following topics were discussed, among others. Environmental issues: • Reviewed the Group's climate strategy and constructively challenged it to ensure our objective of supporting our customers in achieving their transition goals, assessing their climate risks in order to manage the impact on both their business and our operations, and progress in the alignment of our portfolios, in accordance with applicable local regulation. • Reviewed the plans of the global businesses to ensure their alignment with market, regulatory and supervisory context, as well as with the commercial strategy. • Reviewed the ongoing work to develop the prudential transition plan required under Directive 2013/36/EU on access to the activity of credit institutions and the prudential supervision of credit institutions, and under the EBA Guidelines (2025/01) on ESG risk management, in coordination with the risk supervision, regulation and compliance committee. • Monitored the progress made in embedding climate-related and environmental risks in line with supervisory expectations, and monitored the implementation of controls and processes to mitigate ESG risks. • Reviewed the specific internal controls and risk management measures applied to Santander Brasil’s relationships with certain companies operating in the Amazon. • Reviewed the sustainable finance strategy across global businesses and its execution, including priorities related to socially responsible investment. • Oversaw the sustainability strategy, including support to our customers in their transition and financial inclusion and health solutions. Social issues: • Oversaw progress on the implementation of our community support model, to reinforce the Group's contribution to key areas such as education, including financial education, employability, entrepreneurship and support to vulnerable groups, as well as the resulting impact from associated initiatives, assessing their scope and relevance. • Received information on about corporate communication initiatives on social matters. Governance issues: • Verified that the proposed sustainability agenda and targets remained aligned with the Group's strategy. • Assisted the board in ensuring that sustainability targets and metrics were embedded in the Group's remuneration schemes and reviewed, in coordination with the remuneration committee, the proposed sustainability element of the long-term incentives for 2026-2028. • Reviewed engagement with stakeholders such as investors, proxy advisors, ESG rating agencies and NGOs. • Reviewed the priority areas for action based on the outcomes of the double materiality exercise and the associated impacts, risks and opportunities (IROs), including progress on their integration into management and governance to facilitate their monitoring, in coordination with the audit committee. • Reviewed progress made towards the objectives announced at the 2023 Investor Day under its remit and discussed sustainability targets for the next three years in the areas of green financing, investment in education, employment and entrepreneurship initiatives, and financial inclusion. • Supported the audit committee on the supervision and assessment of the process to prepare and present non-financial information according to applicable regulation and international standards. • Reviewed this 2025 Group statement on non-financial information. • Reviewed the Green Bond Report in coordination with the audit committee prior to its submission to the board for approval. • Reviewed the main European and international financial regulatory and supervisory initiatives and priorities related to Annual report 2025112 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | sustainability and how they impacted the Group, including legislative proposals promoted by the European Commission aimed at streamlining sustainability-related disclosure, due diligence, and taxonomy. • Reported favourably to the board on the update of internal regulation within its remit, in coordination with risk supervision, regulation and compliance committee, as required. For more details, see the Rules and Regulations of the board of Directors, available on the Group's corporate website; and sections [4.2 'Board composition](#i6ecb2a0d58d04b53bfadfa2a833efaa7_511)' and [4.9 'Responsible banking,](#i6ecb2a0d58d04b53bfadfa2a833efaa7_547) [sustainability and cultural committee activities in 2025](#i6ecb2a0d58d04b53bfadfa2a833efaa7_547)' in the 'Corporate governance' chapter. #### Board audit committee The board audit committee assists the board in overseeing and reviewing  the financial and sustainability information process, as well as internal control systems. The audit committee consists of five independent directors, 60% of whom are women. All of them have been appointed by the board of directors based on their knowledge, qualifications and experience in the areas of finance, accounting and auditing, internal control, information technology, business or risk management. In 2025, the committee held 15 meetings, including four joint sessions with the risk supervision, regulation and compliance committee and one with the nomination committee. With regard to sustainability reporting, the committee oversaw the sustainability reporting process, receiving regular updates from the Group's Chief Accounting Officer (CAO) and the main functions responsible for sustainability reporting. For more details, see the Rules and Regulations of the board of Directors, available on the Group's corporate website; and sections [4.2 'Board composition](#i6ecb2a0d58d04b53bfadfa2a833efaa7_511) ' and [4.5 'Audit committee activities in](#i6ecb2a0d58d04b53bfadfa2a833efaa7_535) [2025](#i6ecb2a0d58d04b53bfadfa2a833efaa7_535)' in the 'Corporate governance' chapter. #### Risk supervision, regulation and compliance committee The risk supervision, regulation and compliance committee supports and advises the board in defining and assessing risk policies that affect the Group and in determining the current and future risk appetite and the strategy and culture in this area, including proposing appropriate changes in view of internal or external circumstances that impact on the Group (both financial and non-financial risks), among other functions. The risk supervision, regulation and compliance committee consists of five directors, out of which 40% are women, all of them external with three independent members, including its chair. All of them have been appointed by the board of directors based on their knowledge, qualifications and experience in the areas for which the committee is responsible. Thus, its members have competence in issues relevant to this function as banking, accounting, auditing and financing, strategy, risk management, governance and control, as well as in human resources, culture, talent and remuneration. In 2025, the committee held 14 meetings, including four joint sessions with the audit committee and one joint session with the remuneration committee.  It reviewed relevant topics on customer data protection, aspects of customer conduct, complaints and internal whistleblowing. Issues such as risks culture and internal control are also addressed. For more information, see the Rules and Regulations of the board of directors, available on the Group's corporate website; and sections [4.2 'Board composition](#i6ecb2a0d58d04b53bfadfa2a833efaa7_511)' and [4.8 'Risk supervision,](#i6ecb2a0d58d04b53bfadfa2a833efaa7_544) [regulation and compliance committee activities in 2025](#i6ecb2a0d58d04b53bfadfa2a833efaa7_544)' in the 'Corporate governance' chapter. Other committees of the Group board, such as the Nomination and remuneration committees, also support and review sustainability- related issues. For further details, see sections [4.6 'Nomination](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538) [committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538) and [4.7 'Remuneration committee](#i6ecb2a0d58d04b53bfadfa2a833efaa7_541) [activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_541) in the 'Corporate governance' chapter. #### Other governance bodies The corporate accounting and financial reporting, management and sustainability committee performs these functions (among others): • Approve the content and scope of the disclosure in the areas where it applies, as well as the overall style and tone of the narrative within regulatory reporting. • Analyze and validate or, when applicable, propose the approval of all significant sustainability information. This committee meets monthly, or on an extraordinary basis when deemed appropriate. The CCR is composed of senior management members in the functions of risk, compliance, financial and general intervention, among others. The risk control committee (CCR) is responsible for controlling risks and providing a holistic view of them. Determines whether lines of business are managed according to the risk appetite approved by the board. It also identifies, tracks and evaluates the impact of current and emerging risks on the Group’s risk profile. #### Other forums and support functions First line of defence Business functions and all other functions that generate risk exposure are the first line of defence. The first line of defence identifies, measures, controls, tracks and reports the risks that originate and applies the policies, models and procedures that regulate risk management. Risk generation must be adjusted to the approved risk appetite and associated limits. The head of each unit that generates a risk has primary responsibility for managing it. The corporate sustainability function works continuously to define, execute and monitor our sustainability strategy, and coordinates and drives the responsible banking agenda, with support from a senior adviser on responsible business practices who reports directly to the executive chair, as well as with the sustainability network in our core markets, global businesses and corporate functions. Annual report 2025113 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | The accounting and management control function, is responsible for (among others): • establishing and maintaining the internal control system on the financial and sustainability information generated by the function; and • Implementing the standards and policies reflected in the sustainability information sent to the Corporation. It is the responsibility of the functions involved in executing the strategy and preparing information on sustainability (for example: Technology, Operations, Risks, People, Culture and Organization, Tax, and others) that the information provided is true and reliable, establishing the necessary controls and correcting any weaknesses. Second line of defence Risk and compliance functions, as the second line of defence, will provide independent challenge and oversight of the risk management activities performed by the first line of defence. This second line of defence should control, within their respective domains of responsibility, that risks are managed in accordance with the risk appetite defined by senior management and promote a strong risk culture throughout the organization. The internal control function within the Enterprise Wide Risk Management function will be responsible for establishing the criteria and monitoring the implementation and effectiveness of the Santander Group Internal Control System. This will help to the adequacy and integrity of the internal controls established by the different functions to provide reasonable assurance in the achievement of the defined objectives (which include, among others, the reliability of financial and sustainability reporting). Third line of defence The internal audit function periodically assesses that policies, methods and procedures are adequate and effectively applied for the management and control of accounting, financial and management information. The annual audit plan, which was carried out on the basis of a robust risk assessment process (Top- down & Bottom-up methodology), provides reviews of the main aspects contained in this report. In this way, issues related to climate risk and disclaimers are regularly verified as well as compliance with the rules and procedures established in the General Code of Conduct (GCC), independently monitoring their adequacy and effectiveness and those of their local developments. The Open Channel is reviewed and specifically evaluates compliance with data protection regulations. The audit function reports to the audit committee, which, among other functions, assists the board in the supervision and evaluation of the process of preparing and presenting financial and non- financial information, as well as internal control systems. #### Risk management and internal controls over sustainability #### information In order to control the quality and reliability of the information included in the Sustainability statement, Santander implemented an internal control system that complies with the most demanding international standards and complies with the guidelines established by the Committee of Sponsoring Organisations of the Treadway Commission. The most material risks have been identified, and the operation of the established controls has been monitored, ensuring compliance with sustainability disclosure requirements. The most significant aspects taken into account in the process of preparing sustainability information are the following: • Identification and definition of quantitative and qualitative criteria that emanate from regulatory interpretation or our impacts risks and opportunities in areas where there are no consolidated market practices. • The hypotheses, judgments, estimates and approximations used in the calculation and preparation of certain metrics. • Ensuring the completeness of information and establishing perimeters for each metric or group of metrics. • Difficulties in having, in certain respects, third-party information necessary for the construction of our narrative or metrics, especially in the value chain (emissions information from our portfolio, alignment information, supplier information, etc.). • Calculation, processing and consolidation of both quantitative and qualitative information. In addition, we also began to prepare reasonable assurance of several of the metrics to convergence in the quality standards of financial and sustainability information. Similarly to the control of financial information, the implementation and supervision of the control system of sustainability information is carried out through the following bodies: board of directors, Audit committee, Risk Control committee and Corporate Accounting and Financial, Management and Sustainability Reporting committee. For more details, see ['Sustainability information'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_34) of the consolidated management report; section [8. 'Internal control over](#i6ecb2a0d58d04b53bfadfa2a833efaa7_595) [financial reporting (ICFR)](#i6ecb2a0d58d04b53bfadfa2a833efaa7_595)' in the 'Corporate governance' chapter; and section [1.5 'Internal control system](#i6ecb2a0d58d04b53bfadfa2a833efaa7_805)' in the 'Risk management and compliance' chapter. Annual report 2025114 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Control system for sustainability information ![CulturaControl.jpg]() #### Control culture Basis of Internal Control. Essential to provide reasonable assurance in achieving the objectives defined by the Group, acting responsibly. ![EvaluacionRiesgoRSCA.jpg]() #### Risk Assessment #### (RCSA) Dynamic process of evaluating the risks associated with achieving the organization's objectives. ![ActividadesControl.jpg]() #### Control Activities Actions established by policies and procedures that help that management instructions are carried out to mitigate identified risks. ![InformacionComunicacion.jpg]() #### Information and Communication Accurate and timely information for decision-making, facilitating the escalation and governance of improvements and incidents. ![ActividadesSupervision.jpg]() #### Monitoring activities Mechanisms and instruments to monitor the correct implementation and effectiveness of the internal control system, promoting a continuous evaluation of the same. #### Cross-cutting regulations to embed ESG standards in our #### business model Responsible banking framework Establishes responsible banking as a strategic topic for Grupo Santander and all local units. Accounting and Financial Reporting, Management and Sustainability information framework Sets out the principles, Directives and guidelines regarding the preparation of accounting, financial and management information that must be applied by all Group subsidiaries as an essential element of proper governance. Responsible banking and sustainability policy Sets out our sustainability principles, targets and strategy (including human rights protection) to create long-term stakeholder value. Responsible banking model Sets out the roles and responsibilities of the first, second and third line of defence in all responsible banking-related activity to drive our sustainability agenda, embed ESG standards and achieve our goals. In addition to these regulations, which apply to all the Group’s units and businesses, the following section of this chapter details the regulations that apply specifically to the management of each of the material topics and associated IROs: • Climate change (see section [2. 'Our climate transition plan'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73)); • Own workforce (see section [3.1 'Our employees'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157)); • Consumers and end users (see section [3.3 'Our customers'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_187)); • Affected communities (see section [3.2. 'Communities'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_172) [sustainable development'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_172)), • Business conduct (see section [4. 'Business conduct'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199)). All regulations (corporate frameworks, models, policies and procedures) help maintain a high level of governance, and the highest standards in terms of their drafting, approval, and in the monitoring of their local transposition. The approval of the regulations is responsibility of the board of directors or its committees, when the regulated matter falls within their scope of responsibility according to their rules and regulations. Corporate frameworks in all cases must be approved by the board of directors. The regulations approved by the board are as follows: → Relevant corporate frameworks related to sustainability: Responsible Banking, Risk; Cybersecurity; Compliance; Financial Crime prevention; People and culture. → Relevant policies related to sustainability: Responsible banking and sustainability; Code of conduct; Code of conduct in securities markets; Corporate Defence; Environmental, social and climate change risk; Tax; Conflict of interest; Defence sector; Anti-money laundering and countering the financing terrorism; Remuneration; Performance management; Group Succession; Culture. For more details on the Group's key regulatory documents on sustainability, see our corporate website santander.com. SN 3. Materiality assessment – Detailed methodology The double materiality assessment conducted across Grupo Santander and its subsidiaries followed European Sustainability Reporting Standards (ESRS) 1 and 2 and EFRAG’s double materiality guidance. The results of the 2024 assessment remain in force and are presented in this report, with minor wording adjustments to align the description of material impacts, risks and opportunities with how they were managed during the year. To confirm their continued validity, Banco Santander reviewed all methodological components and validated the relevance of inputs and outcomes across the phases of the process. This review found no significant changes that would warrant updating the assessment. In line with paragraph 25 of ESRS 1, it is therefore appropriate to retain the 2024 assessment as the basis for 2025 reporting. The exercise will be reviewed in 2026. ![]() 86 ENCORE: a materiality database of dependencies between production processes and ecosystem services. Annual report 2025115 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Our assessment comprised these phases: | | | | | | --- | --- | --- | --- | | | | | | | | | | | | IconoDocumento.gif | | 1. Background and stakeholder analysis | | | | | | | | | | | | | | | | | | IconoLupa.gif | | 2. Identification of IROs | | | | | | | | | | | | | | | | | | IconoOjo.gif | | 3. Assessment of IROs | | | | | | | | | | | | | | | | | | IconoEscudo.gif | | 4. Materiality thresholds | | | | | | | | Ä | | | | 1. Background and stakeholder analysis General view of the bank, its operations and main lines of business, based on: → Information on the entity : Sources include strategic and financial plans, financial statements and other published reports. This analysis considers operations, products and services, geographical footprint, business relationships and the value chain. → External information: Public documents on sector trends, analyst and supervisor papers, and peers’ sustainability reports. To enhance this background analysis, we also use these external sources: 1. The UNEP FI impact analysis tool to uncover the impact of the Group’s financing operations, including those related to climate change. This tool provides a in-built impact mappings that combined, with our internal data and context, enables us to identify the most significant impact areas of the portfolio. 2. The ENCORE 86 (environmental risk assessment) database to obtain information on the bank customer’s environmental dependencies. 3. Human rights due diligence to spot the actual and potential impact of the bank’s operations on human rights throughout the value chain. In line with regulatory requirements, as part of the review of the analysis scheduled for 2026, the due diligence process will be conducted for both environment and human rights. We use the stakeholder analysis to identify directly affected stakeholders (customers, employees and investors) and readers of the report (supervisors and regulators, our communities and NGOs). We analyse information gathered during stakeholder engagement exercises and conduct surveys on sustainability matters to use as part of our materiality assessment. 2. Identification of impacts, risks and #### opportunities The background analysis uncovered approximately 150 IROs. We categorize every IRO and assign them to a topic, sub-topic or sub- sub-topic under ESRS 1, AR 16. For each IRO, we detail: → the part of the value chain they touch and over what time frame. → the dependencies between impacts and risks, assessing how each impact can lead to new risks and opportunities, with a special focus on the negative impacts of the human rights due diligence exercise; and → who in the organization manages it. → What is the type of financial effect for risks and opportunities. 3. Assessment of impacts, risks and #### opportunities The methodology we use to measure materiality follows the EFRAG implementation guidance. After applying that methodology in this phase, 29 IROs were material. Impact We analyse the materiality of actual and potential impacts based on the likelihood and severity of occurrence and, in the case of negative impacts, include irreparable impacts. → Scale (size of impact): split into five categories: Low, moderately low, medium, high, very high. → Scope: split into four categories: Local, national, international, global. → Irreparable impact (when negative): split into four levels; reparable, reparable with moderate effort, difficult to repair, and irreparable. We estimate the likelihood of impact on a scale of 1 to 5. Risks We adapted our methodology according to the maturity of quantifying environmental and social risks. → The climate materiality assessment includes a climate risk assessment (transition and physical) across several time horizons to align with the EBA’s Guidelines on the management of ESG risks and other EU risk management Directives. We used this information to quantify the materiality of credit, market, operational, reputational and other risks. → We assess other environmental risks related to Pollution, Water and marine resources, Biodiversity and ecosystems and Resource use and circular economy through the exercise described in the section [2.3.5. 'Our approach to nature and biodiversity'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_124). This assessment seeks to identify connection between our portfolios and nature in line with target 15 of the Kunming-Montreal Global Biodiversity Framework adopted at the United Nations Climate Change Conference 2022 (COP15). → For social and governance risks, we use the Sustainability Accounting Standards Board’s (SASB) financial materiality and internal financial information. Opportunities We base the opportunities assessment on forecasts for all our global businesses. We map out projected ESG revenue against the identified opportunities and compared it to the Group’s revenue on a scale of 1 to 5. Stakeholder views We supplement IROs assessments with stakeholder views (affected groups and readers of the report). 87 The two key functions at Group level monitoring these aspects were consulted. Annual report 2025116 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | The number of specific inputs received within this exercise is detailed below. These inputs are part of the constant dialogue with our stakeholders, as detailed in section [1.3. 'Stakeholder engagement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_64)'. | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | Retail.gif Retail Customers | | Investors.gif Investors | | NGOs.gif NGOs | | SeniorManagement.gif Senior management | | Employees.gif Employees | | Regulators.gif Regulators and supervisors 87 | | | | | | | | | | | | | | N = 9000+ | | N = 8 | | N = 3 | | N = 8 | | N = c.200 | | N = 2 | The survey results show agreement in prioritizing three areas: the fight against climate change and supporting the green transition; protecting customer data; information transparency and fostering financial inclusion. Specifically: • Retail customers prioritize social (privacy and personal data security) and governance matters (transparency and honesty). • Employees and senior management prioritize each ESG area equally. • Investors, regulators and NGOs prioritize environmental matters. 4. Materiality thresholds We set a threshold of 3.5 on a scale of 1 to 5 to classify an IRO as material (for impact perspective and financial materiality). This means that we consider IROs that sit between medium (3) and high (4) as material. Taken as a reference the score calculation for the impacts, the score values greater than 3.5 represent events of medium-high severity and events with medium-high probability of occurrence. We also assess the reasonability and coherence of the list of IROs identified as material. In quantitative terms assuming that the distribution of the events materiality follows a normal distribution (average=3 and standard deviation = 0.5), the probability of a score value of 3.5 is around 16%, which is considered reasonable for a material event. Annual report 2025117 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Information on impacts, risks and opportunities (IROs) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | ESRS | IRO description | IRO type | Value chain | Summary of current/ potential effects (narrative) | People/ environment | Strategy- and business model-related impacts | Time horizon1 | Linked to impact due to own operations or business relations 2 | Systemic/ specific | Core activities that lead to positive impacts | Risks and/or opportunities stemming from impacts | More details | | E1 - Climate change | Contribution to protecting the environment by driving an increase in the use of renewable energy and other low-carbon technologies. | Positive impact | Downstream | - Promote the development of innovative, clean technology and our customers’ transition | Environment | 1. Help our customers in their green transition while also managing climate-related risks and impacts | Short/ medium term | Business relations | N/A | N/A | N/A | [2.2 'Supporting our](#i6ecb2a0d58d04b53bfadfa2a833efaa7_91) [customers' transition'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_91) | | E1 - Climate change | Contribution to reducing the Group’s scope 1 and 2 greenhouse gas emissions. | Positive impact | Own operations | - Reducing our environmental footprint | Environment | 1. Help our customers in their green transition while also managing climate-related risks and impacts | Short/ medium term | Own operations | N/A | N/A | N/A | [2.4 'Aiming to align our](#i6ecb2a0d58d04b53bfadfa2a833efaa7_127) [activity with the Paris](#i6ecb2a0d58d04b53bfadfa2a833efaa7_127) [Agreement Goals'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_127) - [2.4.5](#i6ecb2a0d58d04b53bfadfa2a833efaa7_142) ['Our environmental](#i6ecb2a0d58d04b53bfadfa2a833efaa7_142) [footprint'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_142) | | E1 - Climate change | Adverse impact on climate and the environment due to the bank’s financing of, or investment in, certain nonsustainable assets and activities. | Negative impact | Downstream | - Adverse environmental impact | Environment | 1. Help our customers in their green transition while also managing climate-related risks and impacts | Short/ medium term | Business relations | N/A | N/A | N/A | [2.4 'Aiming to align our](#i6ecb2a0d58d04b53bfadfa2a833efaa7_127) [activity with the Paris](#i6ecb2a0d58d04b53bfadfa2a833efaa7_127) [Agreement Goals'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_127) | | E1 - Climate change | Growth in the financing and investment in transition and clean tech solutions, supporting the economy and key sectors such as energy, construction, mobility and agriculture. | Opportunity | Downstream | Support clean technology through our financial product proposition and grow our revenue by providing sustainable solutions in several sectors and partnering our customers in their transition | N/A | N/A | N/A | N/A | N/A | N/A | ✔ | [2.2 'Supporting our](#i6ecb2a0d58d04b53bfadfa2a833efaa7_91) [customers' transition'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_91) | | E1 - Climate change | Reputational risk based on the perception of the Bank's progress with Group climate-related policies and objectives in certain jurisdictions and that could lead to other type of risk implications. | Risk | Own operations and downstream | - Potential reputational damage if risks materialize | N/A | N/A | N/A | N/A | N/A | N/A | ✔ | [2.3 'Embedding climate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_109) [in risk management'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_109)- [2.3.3 'Reputational risk'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_118) | | S1 - Own workforce | Promotion of the health, well-being and security of our employees in a safe and inclusive workplace; facilitate a positive work-life balance between personal and professional life through policies that foster the balance between them. | Positive impact | Own operations | - Contribute positively to a workplace that promotes flexible working, health and well-being | People | 2. Help our employees develop by promoting diversity and learning and providing fair working conditions. | Short/ medium term | Own operations | N/A | Global health and well- being strategy that sets out how we protect the health, safety and well- being of our employees and promote a healthy lifestyle. | N/A | [3.1 'Our employees'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) - [3.1.2 'Working](#i6ecb2a0d58d04b53bfadfa2a833efaa7_163) [conditions'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_163) | Annual report 2025118 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | ESRS | IRO description | IRO type | Value chain | Summary of current/ potential effects (narrative) | People/ environment | Strategy- and business model-related impacts | Time horizon1 | Linked to impact due to own operations or business relations 2 | Systemic/ specific | Core activities that lead to positive impacts | Risks and/or opportunities stemming from impacts | More details | | S1 - Own workforce | Promotion of a workforce that reflects the society we live in and encourages collaboration and provides opportunities for all our employees, irrespective of personal characteristics and in compliance with the law. | Positive impact | Own operations | - Contribute positively to an inclusive environment that offers equal opportunity for all | People | 2. Help our employees develop by promoting diversity and learning and providing fair working conditions. | Short/ medium term | Own operations | N/A | Global inclusive culture strategy for 2020-2025 that drives us to act ethically, purposefully and transparently. | N/A | [3.1 'Our employees'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) - [3.1.2 'Working](#i6ecb2a0d58d04b53bfadfa2a833efaa7_163) [conditions'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_163), [3.1.3](#i6ecb2a0d58d04b53bfadfa2a833efaa7_166) ['Inclusive culture'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_166) | | S1 - Own workforce | Promotion of continuous career development and personal growth through learning and development programmes. | Positive impact | Own operations | - Promote training, development and personal growth among employees | People | 2. Help our employees develop by promoting diversity and learning and providing fair working conditions. | Short/ medium term | Own operations | N/A | Create talent programmes to promote individual growth while considering business demands. | N/A | [3.1 'Our employees'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) - [3.1.1 'Talent and skills](#i6ecb2a0d58d04b53bfadfa2a833efaa7_160) [development'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_160) | | S1 - Own workforce | Promotion of the general well-being of employees and provide appropriate remuneration under equal conditions based on merit and market rates. | Positive impact | Own operations | - Promote appropriate and equal remuneration | People | 2. Help our employees develop by promoting diversity and learning and providing fair working conditions. | Short/ medium term | Own operations | N/A | Remuneration framework that combines fixed and variable pay schemes based on targets for employees and the Group. | N/A | [3.1 'Our employees'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) - [3.1.2 'Working](#i6ecb2a0d58d04b53bfadfa2a833efaa7_163) [conditions'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_163) | | S1 - Own workforce | Harm employees if unlawful discriminatory conduct, inadequate working conditions, harassment or corruption occur. | Negative impact | Own operations | - Potential harm to employees through an inadequate working environment and conditions. | People | 2. Help our employees develop by promoting diversity and learning and providing fair working conditions. | Short/ medium term | Own operations | Systemic | N/A | N/A | [3.1 'Our employees'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) - [3.1.3 'Inclusive culture'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_166) | | S1 - Own workforce | Potential risk of conflict with employees based on the infringement of their rights. | Risk | Own operations | - Potential harm if risks materialize | N/A | N/A | N/A | N/A | N/A | N/A | ✔ | [3.1 'Our employees'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) - [3.1.2 'Working](#i6ecb2a0d58d04b53bfadfa2a833efaa7_163) [conditions'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_163) | | S4 - Consumers and end users | Positive impact on customers due to the bank’s offer of products and services that adapt to their needs and expectations and promote financial inclusion and health. | Positive impact | Own operations | - Promote customer inclusion through products and services that adapt to their needs | People | 4. Be a trusted partner to our customers, with products and services that adapt to their needs, while applying responsible practices, supporting their financial inclusion, and protecting their information. | Short/ medium term | Own operations | N/A | Develop products and services and special programmes to achieve financial health and inclusion | N/A | [3.3 'Our customers'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_187) - [3.3.2 'Financial health](#i6ecb2a0d58d04b53bfadfa2a833efaa7_193) [and inclusion'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_193) | | S4 - Consumers and end users | Education on, and awareness of, cybersecurity to understand potential threats and ways to repel them. | Positive impact | Own operations | Knowledge and awareness of cybersecurity matters to help reduce online threats | People | 4. Be a trusted partner to our customers, with products and services that adapt to their needs, while applying responsible practices, supporting their financial inclusion, and protecting their information. | Short/ medium term | Own operations | N/A | Interactive campaigns, awareness workshops, corporate sponsorship, podcasts | N/A | [3.3 'Our customers'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_187) - [3.3.3 Privacy, data](#i6ecb2a0d58d04b53bfadfa2a833efaa7_196) [protection and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_196) [cybersecurity](#i6ecb2a0d58d04b53bfadfa2a833efaa7_196) | Annual report 2025119 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | ESRS | IRO description | IRO type | Value chain | Summary of current/ potential effects (narrative) | People/ environment | Strategy- and business model-related impacts | Time horizon1 | Linked to impact due to own operations or business relations 2 | Systemic/ specific | Core activities that lead to positive impacts | Risks and/or opportunities stemming from impacts | More details | | S4 - Consumers and end users | Negative impact on the customer if they do not have access to complaints channels or if, after making a complaint, the bank fails to take the necessary action. | Negative impact | Own operations | - Potential breakdown of trust and long-term relationships with customers | People | 4. Be a trusted partner to our customers, with products and services that adapt to their needs, while applying responsible practices, supporting their financial inclusion, and protecting their information. | Short/ medium term | Own operations | Systemic | N/A | N/A | [3.3 'Our customers'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_187) - [3.3.1 'Conduct with](#i6ecb2a0d58d04b53bfadfa2a833efaa7_190) [customers'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_190) | | S4 - Consumers and end users | Potential infringement of customers’, employees’ or shareholders’ rights if a lack of appropriate technical or organizational measures to protect their personal data according to law and the practices set by the Group occur. | Negative impact | Upstream | - Potential breakdown of trust and long-term relationships with customers | People | 4. Be a trusted partner to our customers, with products and services that adapt to their needs, while applying responsible practices, supporting their financial inclusion, and protecting their information. | Short/ medium term | Business relations | Systemic | N/A | N/A | [3.3 'Our customers'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_187) - [3.3.3 Privacy, data](#i6ecb2a0d58d04b53bfadfa2a833efaa7_196) [protection and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_196) [cybersecurity](#i6ecb2a0d58d04b53bfadfa2a833efaa7_196) | | S4 - Consumers and end users | Negative impact on the customer if the bank fails to provide sufficient information on products or services or to guarantee access to, or the use of, products and services that may present certain obstacles or weak spots. | Negative impact | Downstream and own operations | - Potential breakdown of trust and long-term relationships with customers | People | 4. Be a trusted partner to our customers, with products and services that adapt to their needs, while applying responsible practices, supporting their financial inclusion, and protecting their information. | Short/ medium term | Business relations and own operations | Systemic | N/A | N/A | [3.3 'Our customers'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_187) - [3.3.1 'Conduct with](#i6ecb2a0d58d04b53bfadfa2a833efaa7_190) [customers'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_190) | | S4 - Consumers and end users | Potential losses due to fines or a reduction in the number of customers if a failure to detect or respond effectively to breaches of privacy occur. | Risk | Downstream | - Potential harm if risks materialize | N/A | N/A | N/A | N/A | N/A | N/A | ✔ | [3.3 'Our customers'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_187) - [3.3.3 Privacy, data](#i6ecb2a0d58d04b53bfadfa2a833efaa7_196) [protection and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_196) [cybersecurity](#i6ecb2a0d58d04b53bfadfa2a833efaa7_196) | | S4 - Consumers and end users | Potential losses due to complaints or a reduction in the number of customers if substandard customer practices occur. | Risk | Downstream | - Potential harm if risks materialize | N/A | N/A | N/A | N/A | N/A | N/A | ✔ | [3.3 'Our customers'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_187) - [3.3.1 'Conduct with](#i6ecb2a0d58d04b53bfadfa2a833efaa7_190) [customers'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_190) | Annual report 2025120 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | ESRS | IRO description | IRO type | Value chain | Summary of current/ potential effects (narrative) | People/ environment | Strategy- and business model-related impacts | Time horizon1 | Linked to impact due to own operations or business relations 2 | Systemic/ specific | Core activities that lead to positive impacts | Risks and/or opportunities stemming from impacts | More details | | S3 - Affected communities | Contribution to education, employability and entrepreneurship, as well as to community development through support programmes | Positive impact | Own operations | - Enhance education, employability and entrepreneurship opportunities, and contribute positively to addressing social needs in the communities we serve | People | 3. Contribute to the economic, financial and social development of our communities, with a special focus on education, employability and entrepreneurship. | Short/ medium term | Own operations | N/A | - Education: Grants and scholarships for students and researchers to access and complete their studies; and support to universities in overcoming their key challenges (i.e. digitalization) - Employability: Support lifelong learning; and facilitate access to employment in the early stages of people’s career. - Entrepreneurship: Provide access to the training, advice and resources (including benefits). | N/A | [3.2 'Sustainable](#i6ecb2a0d58d04b53bfadfa2a833efaa7_172) [development in our](#i6ecb2a0d58d04b53bfadfa2a833efaa7_172) [communities'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_172) - [3.2.4](#i6ecb2a0d58d04b53bfadfa2a833efaa7_184) ['Community Support'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_184) | | S3 - Affected communities | Drive economic growth and job creation in the regions where we operate and provide credit to people and businesses | Positive impact | Downstream | - Grow the economy by helping people and businesses | People | 3. Contribute to the economic, financial and social development of our communities, with a special focus on education, employability and entrepreneurship. | Short/ medium term | Business relations | N/A | Lending to create or grow businesses; microloans to microentrepreneurs to support the start-up and expansion of their businesses; and mortgages and loans for other items. | N/A | [3.2 'Sustainable](#i6ecb2a0d58d04b53bfadfa2a833efaa7_172) [development in our](#i6ecb2a0d58d04b53bfadfa2a833efaa7_172) [communities'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_172) - [3.2.1](#i6ecb2a0d58d04b53bfadfa2a833efaa7_175) ['Supporting the economy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_175) [and social development](#i6ecb2a0d58d04b53bfadfa2a833efaa7_175) [of our communities'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_175) | | S3 - Affected communities | Contribution to sustainable development through financing and investment that promotes sustainable performance in companies, addresses societal challenges, mitigates a specific issue, or pursues positive societal outcomes | Positive impact | Downstream | - Grow the economy, with a focus on activities that promote ESG performance; address social challenges; mitigate a specific social issue; or pursue positive social outcomes | People | 3. Contribute to the economic, financial and social development of our communities, with a special focus on education, employability and entrepreneurship. | Short/ medium term | Business relations | N/A | - Label operations. - Propose investment that covers ESG factors and sustainability objectives. | N/A | [3.2 'Sustainable](#i6ecb2a0d58d04b53bfadfa2a833efaa7_172) [development in our](#i6ecb2a0d58d04b53bfadfa2a833efaa7_172) [communities'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_172) - [3.2.2](#i6ecb2a0d58d04b53bfadfa2a833efaa7_178) ['Responsible investment](#i6ecb2a0d58d04b53bfadfa2a833efaa7_178) [and social finance'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_178) | Annual report 2025121 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | ESRS | IRO description | IRO type | Value chain | Summary of current/ potential effects (narrative) | People/ environment | Strategy- and business model-related impacts | Time horizon1 | Linked to impact due to own operations or business relations 2 | Systemic/ specific | Core activities that lead to positive impacts | Risks and/or opportunities stemming from impacts | More details | | S3 - Affected communities | Finance activities (in any customer segment) that breach the bank’s policies and jeopardize the well-being of present and future generations or fail to sufficiently involve appropriate stakeholders or use suitable customer identification and management mechanisms when providing finance to a customer or project. | Negative impact | Downstream and own operations | - Potential damage to people’s well-being and/ or to the environment | People/ environment | 3. Contribute to the economic, financial and social development of our communities, with a special focus on education, employability and entrepreneurship. | Short/ medium term | Business relations and own operations | Systemic | N/A | N/A | [3.2 'Sustainable](#i6ecb2a0d58d04b53bfadfa2a833efaa7_172) [development in our](#i6ecb2a0d58d04b53bfadfa2a833efaa7_172) [communities'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_172) - [3.2.3](#i6ecb2a0d58d04b53bfadfa2a833efaa7_181) ['Management of](#i6ecb2a0d58d04b53bfadfa2a833efaa7_181) [environmental and social](#i6ecb2a0d58d04b53bfadfa2a833efaa7_181) [aspects'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_181) | | G1 - Business conduct | Act responsibly and consider investors’ interests and the impact on employees, broader society and the environment; pay taxes to support the distribution of wealth. | Positive impact | Own operations | - Promote decision- making that considers all stakeholders’ interests | People/ environment | 5. Act responsibly through a strong culture, governance and conduct. | Short/ medium term | Own operations | N/A | N/A | N/A | [4.2 'Ethical conduct'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_205) | | G1 - Business conduct | Protect the confidentiality of users of the bank’s ethical channel and have an effective reporting system in place that follows robust principles and procedures. | Positive impact | Own operations | - Availability of mechanisms for stakeholders to escalate confidentially and/or anonymously (and according to regulatory requirements) substandard practices by the bank and its people | People | 5. Act responsibly through a strong culture, governance and conduct. | Short/ medium term | Own operations | N/A | N/A | N/A | [4.3 'Ethical channels'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_208) | | G1 - Business conduct | Promote responsible practices among vendors; engage with them, assess their performance in environmental, social and governance (ESG) matters and give them recommendations and tools to improve. | Positive impact | Own operations | - Promote responsible practice in our value chain | People/ environment | 5. Act responsibly through a strong culture, governance and conduct. | Short/ medium term | Own operations | N/A | N/A | N/A | [4.4 'Our suppliers'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_211) | | G1 - Business conduct | Negative impact on the environment or broader society by failing to implement measures to resolve incidents through complaints or reporting channels or due to a lack of continuous improvement actions. | Negative impact | Own operations | - Potential harm to people and/or the environment; loss of stakeholders’ trust in the channel’s effectiveness | People/ environment | 5. Act responsibly through a strong culture, governance and conduct. | Short/ medium term | Own operations | N/A | N/A | N/A | [4.3 'Ethical channels'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_208) | Annual report 2025122 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | ESRS | IRO description | IRO type | Value chain | Summary of current/ potential effects (narrative) | People/ environment | Strategy- and business model-related impacts | Time horizon1 | Linked to impact due to own operations or business relations 2 | Systemic/ specific | Core activities that lead to positive impacts | Risks and/or opportunities stemming from impacts | More details | | G1 - Business conduct | Harm broader society through bribery or corruption. | Negative impact | Own operations | - Potential loss of customers’ and other stakeholders’ trust | People | 5. Act responsibly through a strong culture, governance and conduct. | Short/ medium term | Own operations | N/A | N/A | N/A | [4.2 'Ethical conduct'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_205) | | G1 - Business conduct | Potential risk from failing to ensure the operational resilience of the value chain by assessing vendors’ solvency, reputation and compliance with the law. | Risk | Own operations | - Potential harm if risks materialize | N/A | N/A | N/A | N/A | N/A | N/A | ✔ | [4.4 'Our suppliers'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_211) | | G1 - Business conduct | Risk stemming from improper conduct that makes illicit funds or assets appear legitimate and, therefore, facilitates illegal activity or to benefit from it. | Risk | Own operations | - Potential harm if risks materialize | N/A | N/A | N/A | N/A | N/A | N/A | ✔ | [4.2 'Ethical conduct'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_205) | | | | | | | | | | | | | | | | 1. For more information on time horizons, see section [1.2 'Materiality assessment'.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_67) 2. Own operations are the bank’s internal activities; Business relations primarily centre on upstream and downstream value chain activities. | | | | | | | | | | | | | 88 The Climate transition plan and the climate content of the Sustainability statement takes into account the recommendations of Glasgow Financial Alliance for Net Zero (GFANZ) and Task Force on Climate-related Financial Disclosures (TCFD) 89 The net-zero and APS reference scenarios used as reference, as well as the values considered for 2030, are those published by the IEA in its 2024 World Energy Outlook report. For oil and gas, the 2023 edition was used, as the 2024 report does not include an update of operational emissions for oil and gas. For own emission reduction reference data for 2030 is 104,400 ton (-42% vs. 2020). 90 PCAF: 'Partnership for Carbon Accounting Financials' is a global partnership of financial institutions that work together to develop and implement a harmonized approach to assess and disclose the greenhouse gas (GHG) emissions associated with their loans and investments. Santander joined PCAF in 2021. Annual report 2025123 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | SN 4. Climate transition plan 88 i. #### Alignment targets details Target types : To help our customers’ transition to a low-carbon economy, we employ physical emissions intensity for setting targets in the oil & gas, power generation, steel and auto sectors. Since transition pathways differ significantly across geographies, sectors and regulatory contexts, we use target ranges for our sectoral alignment.  We prioritize engagement over divestment. We recognize that in certain situations, establishing alignment targets may inadvertently discourage the transition, for example, when customers increase their leverage to undertake significant CapEx programs to align their operations, while the alignment benefits will only materialise over the medium term. To prevent undesirable outcomes like the one described, we evaluate each case individually and base our decisions on a long-term perspective. However, due to the absence of a widely accepted 'transition finance taxonomy', we consider alignment targets to be an effective tool for informing portfolio decisions, provided that each case is managed individually. For the different targets’ design choices taken, we considered inputs from several different internal and external stakeholders. Scenarios : 89 To set science-based alignment targets for our financed sectors to 2030, and recognising that transition pathways differ significantly across geographies, sectors and regulatory contexts, we use regional NZE2050 and APS scenarios from the IEA, both consistent with the Paris Agreement goal of keeping global warming to 1.5ºC and 1.7°C respectively. These target ranges enable us to account for different transition speeds and regulatory frameworks, and to adjust annually in line with the latest scientific and policy developments. Our scope 1 and 2 own emission reduction objective by 2030 aligns with the cross-sector absolute reduction method considered by SBTi, which goes beyond the minimum ambition of a linear annual reduction of 4.2% between the base year and target year. The reduction plan for 2030 is consistent with the Paris Agreement and in line with Regulation (EU) 2021/1119. Target coverage: All CIB portfolio targets and metrics are global and include our core subsidiaries. SCF's target is European and includes its passenger car portfolio (including loans and leasing) in 16 units (13 countries in Europe). This is the same scope we use to measure emissions performance and progress with our targets, though we are working on obtaining information and tracking emissions for other vehicle types. Baseline years: We use 2023 as the baseline year for the four CIB targets and 2022 for auto lending in Europe, respectively. We chose those years to be representative of our portfolios following this year’s target review. For our own operations emissions (Scopes 1 & 2) reduction objectives, we use 2020 as the baseline considering the deadline of the plan set to 2030, and the guidelines criteria for setting science-based targets. Financed emissions: According to the methodology and design we chose for each target we calculate financed emissions based on PCAF 90. Since the emissions information of our customers or financed assets is not available in the same way as their financial information, there is a lag of at least one year in the emissions data. ii. Disclosed financed emissions Santander discloses financed emissions from its loan portfolio for different uses. In the context of portfolio alignment, we calculate the financed emissions of the portfolios of the most relevant sectors, following market standards and practices, focusing on the parts of the value chain of each industry that are most polluting and actionable through alignment strategies. For this purpose it is necessary to use information to monitor alignment strategies and their effectiveness. Additionally, obligations arising from regulatory or supervisory requirements need to cover financed emissions from wider perimeters. For this, we also use other sources and methodologies, including average emission factors per sector based on market- recognised methodologies (such as PCAF). We also calculate the financed emissions of our long-term investments in equity and sovereign debt, which represent material exposures in our balance sheet. Annual report 2025124 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 2. Financed emissions for alignment A | | | | | | | | | Sector | YearB | Exposure (drawn amount EUR bn) C | Emissions scope | Absolute emissionsD | Physical emissions intensity | Financial emissions intensity | Overall PCAF scoreE | | Power generation | 2023 | 12.79 | 1 | 3.88 mtCO₂e | 149 kgCO₂e/MWh | 0.30 mtCO₂e/EUR bn lent | 2.7 | | 2024 | 12.16 | 2.07 mtCO₂e | 88 kgCO₂e/MWh | 0.17 mtCO₂e/EUR bn lent | 2.7 | | Oil & Gas | 2023 | 5.84 | 1 + 2 | 0.75 mtCO₂e | 3.08 tCO₂e/TJ | 0.13 mtCO₂e/EUR bn lent | 3.0 | | 2024 | 5.44 | 0.71 mtCO₂e | 3.15 tCO₂e/TJ | 0.13 mtCO₂e/EUR bn lent | 3.0 | | Steel | 2023 | 1.73 | 1 + 2 | 1.59 mtCO₂e | 1.47 tCO₂e/tS | 0.92 mtCO₂e/EUR bn lent | 3.1 | | 2024 | 1.47 | 1.36 mtCO₂e | 1.51 tCO₂e/tS | 0.92 mtCO₂e/EUR bn lent | 3.0 | | Auto - manufacturing | 2023 | 3.77 | 3F | 2.56 mtCO₂ | 135 gCO₂/vkm | 0.68 mtCO₂/EUR bn lent | 3.0 | | 2024 | 3.65 | 2.15 mtCO₂ | 128 gCO₂/vkm | 0.59 mtCO₂/EUR bn lent | 3.0 | | Auto - lendingG | 2023 | 62.40 | 1 + 2 | 6.78 mtCO₂e | 133 gCO₂e/vkm | 0.11 mtCO₂e/EUR bn lent | 2.7 | | 2024 | 66.27 | 6.42 mtCO₂e | 129 gCO₂e/vkm | 0.09 mtCO₂e/EUR bn lent | 2.7 | | Primary energy | 2023 | 18.34 | 3F | 14.85 mtCO₂e | 45.1 tCO₂e/TJ | 0.81 mtCO₂e/EUR bn lent | 3.0 | | 2024 | 17.12 | 12.65 mtCO₂e | 42.0 tCO₂e/TJ | 0.74 mtCO₂e/EUR bn lent | 2.9 | | Aviation | 2023 | 0.70 | 1 + 2 | 0.58 mtCO₂e | 83 gCO₂e/RPK | 0.83 mtCO₂e/EUR bn lent | 3.0 | | 2024 | 0.53 | 0.46 mtCO₂e | 78 gCO₂e/RPK | 0.87 mtCO₂e/EUR bn lent | 3.0 | | AgroH | 2023 | 2.87 | 1 + 2 | 8.41 mtCO₂e | 6.87 tCO₂e/ton | 2.93 mtCO₂e/EUR bn lent | 3.0 | | 2024 | 2.46 | 7.12 mtCO₂e | 6.56 tCO₂e/ton | 2.89 mtCO₂e/EUR bn lent | 3.0 | | MortgagesI | 2023 | 262.45 | 1 + 2 | 1.93 mtCO₂e | 21.06 kgCO₂e/m² | 0.01 mtCO₂e/EUR bn lent | 3.5 | | 2024 | 284.13 | 2.19 mtCO₂e | 19.00 kgCO₂e/m² | 0.01 mtCO₂e/EUR bn lent | 3.6 | | Commercial Real Estate J | 2023 | 18.26 | 1+2 | 0.19 mtCO₂e | 22.89 kgCO₂e/m² | 0.01 mtCO₂e/EUR bn lent | 4.0 | | 2024 | 18.82 | 0.31 mtCO₂e | 26.14 kgCO₂e/m² | 0.03 mtCO₂e/EUR bn lent | 4.0 | A.These financed emissions should not be confused with the EBA Pillar 3 exercise financed emissions calculations, as the perimeter and therefore, supporting data of the two exercises are different. In the case of corporate business loans, Banco Santander calculates the Total Value of the Company (used to obtain the emissions attribution factor) by adding the total equity and debt of the company in order to avoid the high volatility in market capitalization. B.Obtaining emissions data from our customers is a challenge. As they disclose more non-financial information worldwide, the quality of our reporting on financed emissions will improve. In some other retail sectors, we rely on availability of emissions information for the different asset types as well as business information. C.For power generation it includes Corporates and Project Finance in operation, and under construction. Exposure in Santander Polska in 2024: EUR 0.76 bn in Power Generation and EUR 0.61bn in Auto Manufacturer. Exposure in remaining CIB sectors not material. D.Absolute financed emissions 2024 in Santander Polska 0.33 mtCO2e in Auto Manufacturer. Absolute financed emissions in other CIB sectors not material. E. In line with PCAF’s data source hierarchy, this score is assigned to financed emissions calculations, ranging from 1 ( company-reported and verified data) to 5 (proxy or industry-average data). F.Scope 3 - category 11: use of sold products. G.Consumer lending for the acquisition of passenger cars, covering a significant majority of the exposure in Europe.. H.Agriculture portfolio in Brazil. From 2024 onwards, and in line with materiality criteria, the calculation includes only soy, corn and beef cattle. The 2023 figure was recalculated to ensure comparability. I.Mortgage portfolio in the United Kingdom and Spain for 2023; United Kingdom, Spain and Portugal for 2024. Assessment includes Scope 1 and 2 emissions based on actual (where available) and modelled EPC's. J. Commercial real estate portfolios in the United Kingdom and Spain for 2023; in the United Kingdom, Spain and Portugal for 2024. Assessment includes Scope 1 and 2 emissions based on actual (where available) and modelled EPC's. More detail regarding other financed emissions calculations from our balance sheet, see section [SN 7.1 'Green transition'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_244). iii. Internal carbon pricing Internal carbon pricing is a tool that helps internalize the external costs of carbon emissions and align operations with broader sustainability objectives. We consider setting an internal carbon price is not the most appropriate approach for our type of operations and core business model as we strive to help our customers go green. Nonetheless, we do consider carbon pricing in several of our internal review and assessment tools, such as scenario analyses and transition risk calculations. These processes reflect the 'real world' costs in our prices. A 'fictitious' internal carbon price would cause disparity between the customer’s actual ability to pay debt and internal valuations. We encourage the creation of carbon prices in real economies to facilitate the transition to a low-carbon economy. Grupo Santander’s strategy to lessen the environmental impact of our operations involves reducing CO2e emissions and offsetting the emissions that we’re unable to reduce. We follow a strict carbon credits selection process that includes due diligence on compliance and consistency with our environmental, social and climate change policy. Credits are certified under some of the industry's most well- known standards. Moreover, the carbon credits we purchase are ratified by an independent rating agency to validate their integrity. We actively monitor the voluntary carbon credit market to adapt our offsetting strategy to best practice. Offsetting serves to internalize the cost of emissions (scopes 1 and 2) from our own operations. iv. EU Paris-aligned benchmarks Because of our financing and investment operations, Santander is not excluded from the EU Paris-aligned benchmarks. These benchmarks are designed to align investment with the Paris Agreement’s goals and include undertakings that meet special 91 Estimates of future GHG emissions that could arise during the useful life of a company’s key assets. The term 'key assets' refers to existing or planned assets that a company owns or controls (e.g. fixed or mobile installations and equipment) and that are direct or indirect energy-related sources of GHG emissions. 92 Estimates of future GHG emissions as the direct GHG emissions from the use of products sold throughout their useful life (category 3.11). 93 Does not include information on Santander Bank Polska S.A. and its subsidiaries. 94 These are: 1) climate change mitigation; 2) climate change adaptation; 3) sustainable use and protection of water and marine resources; 4) transition to a circular economy; 5) pollution prevention and control and protection; and 6) restoration of biodiversity and ecosystems. 95 The CSRD applies to large companies, listed companies, banks, or insurance companies that meet certain criteria, such as having a balance sheet total greater than EUR 20 million, a turnover greater than EUR 40 million, or an average number of employees greater than 500 during the fiscal year. 96 Balance sheet total excluding exposures to sovereign debt, central banks and the trading book. 97 Calculation for the two climate-related objectives. For the flow of volumes, the Green Asset Ratio is  3.29% (turnover-based) and 3.85% (CapEx-based). 98 Eligibility for the climate-related targets is 31.2% based on turnover and 31.3% based on CapEx. For the remaining four targets, is 0.04%  based on turnover and 0.03% based on CapEx. Annual report 2025125 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | sustainability standards. They exclude undertakings that do not meet those standards. We disclose our exposure to undertakings excluded from those benchmarks in section ‘10.4 Credit quality of exposures‘ of our Pillar 3 disclosures report in accordance with points (d) to (g) of Article 12(1) and (2) of Regulation (EU) 2020/1818. v. Locked-in GHG emissions Our double materiality assessment shows that our direct emissions do not have a negative impact on, or pose material risk to, the environment. Regarding locked-in GHG emissions from key assets, 91 the nature of our financing and investment activity means that none of our key assets are sources of scope 1 and 2 emissions. Nonetheless, the Group takes carbon footprint reduction measures to help make a positive contribution to the environment. As detailed in the [2.4.5 ‘Our environmental footprint](#i6ecb2a0d58d04b53bfadfa2a833efaa7_142)’ section regarding indirect GHG emissions (scope 3), the only material category under this scope was category 3.15 (financed emissions), with a weighting of over 99% of the total scope 3 emissions. Regarding locked-in GHG emissions from key products, 92 the category Scope 3.11 'Use of sold products emissions' is not material to the bank. With regard to locked-in GHG emissions in category 3.15, there is currently no information available to have a reliable estimation due to lack of information from counterparties. In future exercises, its evaluation will be assessed based on the availability of data. SN 5. EU Taxonomy 93 #### Information on Article 8 of the EU Taxonomy #### Regulation In 2020, the European Union adopted the Taxonomy Regulation that sets out a list of activities that can qualify as environmentally sustainable 94 and stipulates that companies subject to the Corporate Sustainability Reporting Directive 95 must disclose how their operations align with the EU Taxonomy. In this context, and in accordance with the transitional regime set out in Commission Delegated Regulation (EU) 2026/73, the Group will defer until 2026 the application of both the new templates and the associated calculation methodologies (including the criteria applicable to the numerator and denominator of the Taxonomy KPIs, such as the Green Asset Ratio); accordingly, for the 2025 fiscal year the templates, calculation methodologies and disclosure requirements are maintained. → GAR, financial institutions: Financial institutions have been disclosing their Green Asset Ratio (GAR) since 2023. This ratio measures the financing granted to Taxonomy-aligned activities as the numerator and the total balance sheet as the denominator. 96 To be considered aligned, activities must meet specific taxonomy criteria and ensure that they do no significant harm (DNSH) to any of the other environmental objectives and meet minimum social safeguards (MSS). #### Santander's GAR is #### 3.17% (turnover-based) 97 and 3.35% #### (CapEx-based) 98 The European Taxonomy criteria do not reflect the full reality of companies’ transition efforts. Many activities that contribute to the transition to a greener economy do not meet the Taxonomy’s alignment criteria. Thus, we cannot include them in the ratio (for instance, certain types of hybrid cars, which, despite being an undoubted improvement on petrol cars, are not admitted in all cases). Moreover, the limitations in the design of the ratio and in financial institutions’ implementation of the Taxonomy lead to reduced numbers: • The numerator and denominator are not symmetric. While the denominator reflects the balance sheet total, the numerator only includes financing in relation to four portfolios: financial institutions; non-financial institutions subject to the CSRD; households (mortgages, auto and renovations); and local governments. Thus, the numerator does not consider green loans to SMEs or the majority of non-European entities. • The available data is limited. In Latin America and even in European countries, energy efficiency certificates are either non- existent or very limited, which makes it impossible to account for aligned mortgages in the ratio. There are also significant gaps in companies’ alignment information. • DNSH (do no significant harm) and MSS (minimum social safeguards) implementation criteria are complex and in no way reflect the reality of a bank. These criteria compel financial institutions to collect evidence that shows the counterparty 99 For the asset management and insurer KPI, we included eligible and aligned transactions based on the eligibility and alignment ratios of counterparties (both in terms of CapEx and turnover). 100 C/2024/6691 101 Eligibility for climate-related targets is 7.9%  based on turnover and 7.4% based on CapEx. For the remaining four objectives, eligibility is 1.88% based on turnover and 0.23% based on CapEx. 102 European Commission requirements dictate the disclosure of a KPI relating to investment and underwriting. Since the Group does not engage in underwriting relating to non-life insurance (but only markets these products), we only disclose an investment KPI. 103 Eligibility for climate-related targets is 12.7%based on turnover and 9.6%based on CapEx. For the remaining four objectives, eligibility is 2.62% based on turnover and 0.50% based on CapEx. 104 Based on turnover and CapEx, with weightings according to the proportion of revenue stemming from the activities covered by the corresponding KPI in their total turnover. Annual report 2025126 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | meets certain standards for each transaction. This results in an inability to include specific aligned financing (e.g. project finance) in the numerator. Based on a voluntary approach and to mitigate the first limitation mentioned above, we complement disclosure, we complement the GAR with an additional ratio (European and symmetric), 9.02%: • The numerator follows the same criteria than the previous ratio but only covers European exposures aligned with the Taxonomy. • The denominator is symmetric and only includes portfolios where we can currently label exposures as environmentally sustainable: European financial and non-financial corporations subject to the CSRD, households, and local governments. We excluded (non-exhaustive list): Non-CSRD companies (since they do not have reporting obligations), cash & interbank loans, derivatives, goodwill and others. | | | | | --- | --- | --- | | | | | | (EUR million) | 2025 | 2024 | | GAR stockA | 3.17% | 3.04% | | Taxonomy aligned activities | 43,150 | 39,656 | | Total GAR denominator | 1,359,362 | 1,306,542 | | European & Symmetric - GAR A | 9.02% | 7.90% | | Taxonomy aligned activities | 42,962 | 39,287 | | Total GAR denominator | 476,536 | 497,604 | | A Turnover-based ratio | | | → Other businesses’ GAR (asset management, insurance and investment services): In addition to the credit institutions GAR that has already been published, we included the GAR for asset management, insurance 99 and investment services businesses according to the European Commission's requirements 100 → Our key performance indicator for asset management is 2.44% (based on turnover) and 3.48% (based on CapEx). 101 → Our key performance indicator for insurance 102 is 1.70% (based on turnover) and 2.09% (based on CapEx). 103 → Regarding the investment services KPI, we analysed the turnover of the Group's companies in relation to the total, noting that it accounts for less than 3% and is, therefore immaterial. Accordingly, as in the previous year, it has been decided not to disclose the related templates. → Consolidated KPI: Last, per the European Commission's communiqué, we publish a consolidated KPI of all businesses, calculated as the weighted average of the applicable KPI of each business (credit institutions, asset management, insurance and investment services) based on turnover and CapEx, with weightings according to the proportion of revenue stemming from the activities covered by the corresponding KPI in their total turnover. 104 Our consolidated KPI is 3.10% (based on turnover) and 3.30% (based on CapEx). We considered net interest income and fees for the weighting of the turnover-based KPI. Please find the complete disclosure on the following pages, including the templates set out in the Taxonomy Regulation. | | | | --- | --- | | | | | | For more details on how our financial strategy, product design and relations with customers and counterparties comply with the EU Taxonomy, please see the sections 2. 'Supporting the green transition' and 10.9 'GFANZ transition planning' . | | | | | --- | --- | | | | | | For more details about GAR, please see the section '[SN 7.2 EU taxonomy](#i952a7fb59f26435880871367d6d9b923_4266) [tables](#i952a7fb59f26435880871367d6d9b923_4266) '. | Annual report 2025127 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | SN 6. Classification system and funding framework #### Sustainable finance and investment classification system (SFICS) | | | --- | | | | | Sustainable finance is key to meeting our climate ambition. We continue to build on our sustainable finance guidelines, which we first published in February 2022, and that we continue updating based on developments in regulation and market practice. Since 2024 it also includes socially responsible investment standards and is now called the Sustainable finance and investment classification system (SFICS). The SFICS outlines common standards to consider an asset or activity as environmental, social or sustainable in all the Group’s units and businesses. It draws on such international market guidelines, standards and principles as the EU Taxonomy (including the four new environmental targets for 2023), ICMA (International Capital Market Association) Principles, LMA (Loan Market Association) Principles, UNEP FI Framework and the Climate Bonds Standard. The SFICS enables us to track our sustainable activity, support product development and mitigate greenwashing risk. In 2025, we have continued incorporating new criteria, focusing on finance supporting the transition, as well as social finance criteria, and in accordance with local law and regulation. #### In 2025 we updated the SFICS based on lessons learned and market trends. It now features: | | | --- | | | | | | | | | --- | --- | | | | | CityBuildings.jpg | A sustainability approach for customers that complements the activity-based approach. | | | Additional details on activities needed or supporting the transition to a low carbon economy, sustainable agriculture, food security and support to cooperatives. | | SolarEnergy.jpg | New activities that come to light on the back of developments in the EU Taxonomy and other local taxonomies, covering environmental goals related to water, waste, the circular economy and biodiversity. | | | | --- | | | | | We will continue working to evolve the SFICS in line with market developments and business practice, to have a comprehensive set of criteria that enables us to classify green and transition activities that support our customers transition and contribute to our climate ambition, as well as classifying activities as sustainable or social. | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Internationally recognized sector principles and guidelines that the SFICS draws on | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | EU taxonomy | | ICMA Green/ Social Bond Principles | LMA Green Loan Principles | LMA Sustainability Linked Loan Principles | | ICMA Sustainability Linked Bond Principles | | Local taxonomies (Colombia, Mexico, Chile, Brazil) | UNEP FI framework | Climate Bond Standards | | Eligible products | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Dedicated purpose | | | | | | Sustainability-linked financing | | | | | | | | | | | | | | | | | | → Proceeds go towards eligible environmental and social activities and initiatives . → Eligibility criteria: Activities with a specific environmental and social purpose under accepted standards that follow internationally recognized sector guidelines and principles (ICMA, LMA, Climate Bonds Standard) and the EU taxonomy. | | | | | | → Sustainability-linked transactions designed to help our customers achieve their ESG objectives. → Transaction structured to achieve pre-determined sustainability performance targets (ESG ratings and metrics). → Alignment with sector standards (ICMA and LMA). | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Annual report 2025128 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Green, social and sustainability funding global framework | | | --- | | | | | Up dated in 2023, this framework is the reference for all environmental, social and sustainability-labelled funding instruments traded in sustainable capital markets and enables all Grupo Santander entities to issue based on it. It replaces our previous Global sustainable bond and Green bond frameworks. Consistent with best market practice and investor expectations, it covers use of proceeds, project assessment and selection, management of proceeds and reporting in line with the International Capital Market Association’s (ICMA) and Loan Market Association’s (LMA) guidelines. It is also consistent with the SFICS. There are 15 labelled bonds available which have been issued under this framework, with 6 of them issued in 2025. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Available green, social and sustainable bonds issued based on this framework\* | | | | | | | Label | Issuance Date | Issuer | Product | Nominal | Maturity | | Green | Oct-19 | Banco Santander S.A. | Senior Preferred | EUR 1 bn | 7 yrs | | Green | Jun-20 | Banco Santander S.A. | Senior Non Preferred | EUR 1 bn | 7 yrs | | Green | Jan-21 | Santander Consumer Bank AS | Senior Preferred | SEK 500 mn | 5 yrs | | Green | Jun-21 | Banco Santander S.A. | Senior Non Preferred | EUR 1 bn | 8NC7 | | Green | Nov-21 | Santander Consumer Bank AS | Senior Preferred | NOK 250 mn | 5 yrs | | Social | Jun-24 | Banco Santander (Brasil) S.A. | Senior Unsecured | USD 250 mn | 3 yrs | | Green | Sep-24 | Santander Consumer Bank AS | Senior Preferred | SEK 500 mn | 3 yrs | | Green | Oct-24 | Santander Consumer Bank AS | Senior Preferred | SEK 300 mn | 3 yrs | | Green | Nov-24 | Santander Consumer Bank AS | Senior Preferred | NOK 300 mn | 3 yrs | | Green | Jun-25 | Banco Santander Chile | Senior Unsecured | USD 10 mn | 5 yrs | | Green | Jul-25 | Banco Santander Chile | Senior Unsecured | JPY 10 bn | 3 yrs | | Green | Aug-25 | Santander Consumer Bank AS | Senior Preferred | NOK 500 mn | 3 yrs | | Sustainability | Oct-25 | Banco Santander de Negocios Colombia S.A. | Senior Unsecured | COP 150,000 mn | 2 yrs | | Sustainability | Oct-25 | Banco Santander de Negocios Colombia S.A. | Senior Unsecured | COP 200,000 mn | 4 yrs | | Green | Dec-25 | Banco Santander Chile | Senior Unsecured | USD 10 mn | 5 yrs | \*Information disclosed in our quarterly fixed income reports Annual report 2025129 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | SN 7 . Our progress in figures [SN 7.1 Green transition](#i6ecb2a0d58d04b53bfadfa2a833efaa7_244)[130](#i6ecb2a0d58d04b53bfadfa2a833efaa7_244) [Table 1. Green finance](#ia4b148af416b45c09528cae4f69b8d3f_0-0-1-4-3384596) [130](#ia4b148af416b45c09528cae4f69b8d3f_0-0-1-4-3384596) [Table 2. Environmental footprint](#i1f74f6f3525d4a168221dc02d27ccdba_0-0-1-4-3384596) [130](#i1f74f6f3525d4a168221dc02d27ccdba_0-0-1-4-3384596) [Table 3. Gross scopes 1, 2, 3 and total GHG emissions](#i7b8a7be31301404a901df0071b60af99_0-0-1-9-3384596) [131](#i7b8a7be31301404a901df0071b60af99_0-0-1-9-3384596) [Table 4. GHG mitigation projects financed through](#i2f0e4798672b489cb81f31e758f674a9_0-0-1-2-3384596) [carbon credits](#i2f0e4798672b489cb81f31e758f674a9_0-0-1-2-3384596)[134](#i2f0e4798672b489cb81f31e758f674a9_0-0-1-2-3384596) [Table 5 Equator principles](#ieab9836795ca4881a10472a2ad0c86b9_0-0-1-12-3384596) [134](#ieab9836795ca4881a10472a2ad0c86b9_0-0-1-12-3384596) [SN 7.2 EU taxonomy tables](#i6ecb2a0d58d04b53bfadfa2a833efaa7_247)[135](#i952a7fb59f26435880871367d6d9b923_4266) [SN 7.3 Employees](#i6ecb2a0d58d04b53bfadfa2a833efaa7_250)[217](#i6ecb2a0d58d04b53bfadfa2a833efaa7_250) [Table 6. Employees by region](#i23f9fb5f929046d98e601e31f4353e8c_0-0-1-3-3384596)[217](#i23f9fb5f929046d98e601e31f4353e8c_0-0-1-3-3384596) [Table 7. Employees by gender](#i22f063b8e03547c88fab2a0af8303c70_0-0-1-3-3384596) [217](#i22f063b8e03547c88fab2a0af8303c70_0-0-1-3-3384596) [Table 8. Employees by management group and gender](#if8ca8e21d57d470bb69f14f2448473e1_0-0-1-12-3384596)[218](#if8ca8e21d57d470bb69f14f2448473e1_0-0-1-12-3384596) [Table 9. Employees by age bracket](#ic35d2f07d051460e849186837b18bc4e_0-0-1-9-3384596)[218](#ic35d2f07d051460e849186837b18bc4e_0-0-1-9-3384596) [Table 10. Employees by employment contract](#i0a52848ddec948c792f01d3b6595cc15_0-0-1-6-3384596) [219](#i0a52848ddec948c792f01d3b6595cc15_0-0-1-6-3384596) [Table 11. Collective bargaining coverage](#icc7bcb01782f4b66bf4013adfe4e5784_0-0-1-4-3384596) [and social dialogue](#icc7bcb01782f4b66bf4013adfe4e5784_0-0-1-4-3384596) [219](#icc7bcb01782f4b66bf4013adfe4e5784_0-0-1-4-3384596) [Table 12. Turnover by region](#i46d37bea71cc4d9d9f94d37a5c99643a_0-0-1-6-3384596) [219](#i46d37bea71cc4d9d9f94d37a5c99643a_0-0-1-6-3384596) [Table 13. Average remuneration by management group,](#ibcecee23b4c34006b2f64443014b522a_0-0-1-6-3384596) [gender](#ibcecee23b4c34006b2f64443014b522a_0-0-1-6-3384596) [and age bracket](#ibcecee23b4c34006b2f64443014b522a_0-0-1-6-3384596)[220](#ibcecee23b4c34006b2f64443014b522a_0-0-1-6-3384596) [Table 14. Remuneration ratios](#i965ee90e70b2496d9729ff9edec7e027_0-0-1-2-3384596) [220](#i965ee90e70b2496d9729ff9edec7e027_0-0-1-2-3384596) [Table 15. Average remuneration of senior management](#iab241cdf2cd94d71ac2ed5dd485b1865_0-0-1-8-3384596) [220](#iab241cdf2cd94d71ac2ed5dd485b1865_0-0-1-8-3384596) [Table 16. Average remuneration of senior](#i8c9b086a93c042fb9267d8a73ef19de1_0-0-1-8-3384596) [management linked to long-term objectives](#i8c9b086a93c042fb9267d8a73ef19de1_0-0-1-8-3384596) [220](#i8c9b086a93c042fb9267d8a73ef19de1_0-0-1-8-3384596) [Table 17. Senior management composition](#ia9bd86d08214497c911594339c9470c9_0-0-1-8-3384596)[220](#ia9bd86d08214497c911594339c9470c9_0-0-1-8-3384596) [Table 18. Training](#i77ae4ef3138547f88b754156164eee00_0-0-1-2-3384596) [221](#i77ae4ef3138547f88b754156164eee00_0-0-1-2-3384596) [Table 19. Hours of training by gender and management](#i378f16f6ec7b43e99baf8d71ee5d90b3_0-0-1-6-3384596) [group](#i378f16f6ec7b43e99baf8d71ee5d90b3_0-0-1-6-3384596)[221](#i378f16f6ec7b43e99baf8d71ee5d90b3_0-0-1-6-3384596) [Table 20. Occupational health and safety](#i97252317f29d4eb4974d5660508e54c3_0-0-1-8-3384596)[221](#i97252317f29d4eb4974d5660508e54c3_0-0-1-8-3384596) [SN 7.4 Customers](#i6ecb2a0d58d04b53bfadfa2a833efaa7_253)[222](#i6ecb2a0d58d04b53bfadfa2a833efaa7_253) [Table 21. Group customers](#ic33917f0245a41f199a5fcd52f4da103_0-0-1-4-3384596)[222](#ic33917f0245a41f199a5fcd52f4da103_0-0-1-4-3384596) [Table 22. Dialogue by channel](#ibcc70ee005d24831a66405f8a5b6e285_0-0-1-4-3384596) [222](#ibcc70ee005d24831a66405f8a5b6e285_0-0-1-4-3384596) [Table 23. NPS ranking by country](#i3aee98e9353246fa8c25e8a35d8fa489_0-0-1-3-3384596)[223](#i3aee98e9353246fa8c25e8a35d8fa489_0-0-1-3-3384596) [Table 24. Total complaints](#idbb16d83d5454a63971a34e194f33073_0-0-1-3-3384596) [223](#idbb16d83d5454a63971a34e194f33073_0-0-1-3-3384596) [SN 7.5 Financial inclusion](#i6ecb2a0d58d04b53bfadfa2a833efaa7_256)[223](#i6ecb2a0d58d04b53bfadfa2a833efaa7_256) [Table 25. People financially included](#ibf412d4251924b45be3025069d3354af_0-0-1-3-3384596)[223](#ibf412d4251924b45be3025069d3354af_0-0-1-3-3384596) [Table 26. Microfinance](#ib5e60259255f463b9928da6da7e68ed8_0-0-1-3-3384596)[224](#ib5e60259255f463b9928da6da7e68ed8_0-0-1-3-3384596) [SN 7.6 Community support](#i6ecb2a0d58d04b53bfadfa2a833efaa7_259)[224](#i6ecb2a0d58d04b53bfadfa2a833efaa7_259) [Table 27. Community support](#i61ccf4dc29414196ba81aad2d1681679_642)[224](#i61ccf4dc29414196ba81aad2d1681679_642) [Table 28. People and organizations helped](#i61ccf4dc29414196ba81aad2d1681679_643)[224](#i61ccf4dc29414196ba81aad2d1681679_643) [SN 7.7 Tax contribution](#i6ecb2a0d58d04b53bfadfa2a833efaa7_262)[225](#i6ecb2a0d58d04b53bfadfa2a833efaa7_262) [Table 29. Total taxes paid](#i2871cd8afdb7495ba2484c0707ad0afe_0-0-1-6-3384596)[225](#i2871cd8afdb7495ba2484c0707ad0afe_0-0-1-6-3384596) Annual report 2025130 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | SN 7.1 #### Green transition | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | 1. Green finance A | | | | | | | EUR bn | 2025 | 2024 | 2023 | 2022 | 2021 | | Raised and facilitated | 34.6 | 24.1 | 20.9 | 28.8 | 31.9 | | Accumulated since 2019 | 174.0 | 139.4 | 115.3 | 94.5 | 65.7 | A. From January to December 2025, CIB contributed EUR 34.6 billion to the green finance target. Information obtained from public sources, such as Infralogic, Dealogic, TXF or Bloomberg league tables. All roles undertaken by Banco Santander in the same project are accounted for. Other sustainable finance components, such as financial inclusion and entrepreneurship, are excluded. Green Finance raised and facilitated is not a synonym of EU Taxonomy. Information from League Tables extracted by 12 January 2026, at the latest. | | | | | | --- | --- | --- | --- | | | | | | | 2. Environmental footprint | | | | | | 2025 | 2024 | Var. 2025-2024 (%) | | Consumption | | | | | Total internal energy consumption (MWh) | 914,344 | 1,012,554 | -9.7 | | Total fossil energy consumption (MWh) | 140,993 | 179,258 | -21.3 | | Share of fossil sources in total energy consumption (%) | 15.4% | 17.7% | -12.9 | | Consumption from nuclear sources (MWh) | 1,466 | 6,457 | -77.3 | | Share of nuclear sources in total energy consumption (%) | 0.2% | 0.6% | -74.8 | | Total certified renewable energy consumption (MWh) | 760,720 | 793,136 | -4.1 | | Share of certified renewable sources in total energy consumption (%) | 83.2% | 78.3% | 6.2 | | Fuel consumption by renewable source, such as biomass (MWh) A | 5,358 | 0 | — | | Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh) | 738,945 | 780,356 | -5.3 | | Consumption of self-generated non-fuel renewable energy (MWh) | 16,417 | 12,780 | 28.5 | | Total not certified renewable energy consumption (MWh) | 11,165 | 33,703 | -66.9 | | Share of not certified renewable sources in total energy consumption (%) | 1.2% | 3.3% | -63.3 | | Total electricity (millions of kwh) | 774.54 | 856.65 | -9.6 | | Electricity from non-renewable sources (millions of kwh) | 19.17 | 63.52 | -69.8 | | Electricity from renewable sources (millions of kwh) | 755.36 | 793.14 | -4.8 | | Percentage of contractual instruments (contracts for renewable electricity guaranteed by utility) used for the procurement of renewable electricity. | 53% | 53% | 0.3 | | Percentage of contractual instruments (PPAs\_Power Purchase Agreements) used for the purchase of renewable electricity | 9% | 9% | 0.5 | | Percentage of contractual instruments (IRECs (International Renewable Electricity Certificates or DoO) used for the procurement of renewable electricity | 38% | 38% | -0.5 | | Water (m3)B | 1,952,392 | 1,961,149 | -0.4 | | Paper (t) | 6,106 | 6,023 | 1.4 | | Recycled or certified paper (t) | 5,144 | 5,000 | 2.9 | A. The total amount of renewable fuel reported is based on the purchase of biogas certificates in the United Kingdom, equivalent to Guarantees of Origin associated with the gas consumed in our facilities. B. Santander consumes water basically from public water supply networks. Annual report 2025131 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | 3. Gross scopes 1, 2, 3 and total GHG emissions (excluding financed emissions) | | | | | | | | | | | Retrospective | | | | Milestones and target years G | | | | | | Base year (2020) G | Comparative (2024) | N (2025) | % N / N-1 | 2025 | 2030 | 2050 | Annual Target % / Base Year | | Scope 1 GHG emissions A,B | | | | | | | | | | Gross scope 1 GHG emissions (tCO2 e) | 41,158 | 40,699 | 40,173 | (1.3%) | - | 38,499 | - | 0.6% | | Scope 2 GHG emissions A,C | | | | | | | | | | Gross location-based Scope 2 GHG emissions (tCO 2 e) | 297,621 | 194,276 | 165,781 | (14.7%) | - | 172,276 | - | 4.2% | | Gross market-based Scope 2 GHG emissions (tCO2 e) | 144,038 | 24,350 | 11,524 | (52.7%) | - | 12,350 | - | 9.1% | | Significant scope 3 GHG emissions D | | | | | | | | | | Total Gross indirect (Scope 3) GHG emissions (tCO 2 e) | - | 1,116,061 | 1,408,798 | 26.2% | - | - | - | - | | 1 Purchased goods and services E | - | 698,768 | 1,133,547 | 62.2% | - | - | - | - | | 2 Capital goods E | - | 216,388 | 72,145 | (66.7)% | - | - | - | - | | 4 Upstream transportation and distribution E | - | 52,835 | 61,135 | 15.7% | - | - | - | - | | 6 Business travelA,F | - | 52,150 | 41,216 | (21.0)% | - | - | - | - | | 7 Employee commuting A,F | - | 82,569 | 82,347 | (0.3)% | - | - | - | - | | 9 Downstream transportationE | - | 13,350 | 18,408 | 37.9% | - | - | - | - | | Total GHG emissions (excluding financed emissions) A,H | | | | | | | | | | Total GHG emissions (location-based) (tCO 2 e) | - | 1,351,008 | 1,614,753 | 19.5% | - | - | - | - | | Total GHG emissions (market-based) (tCO 2 e) | - | 1,181,082 | 1,460,495 | 23.7% | - | - | - | - | A. The entities listed under ESRS Requirement E1, paragraph 50.b) (investees with operational control), are not material to Santander. B. These emissions include those derived from direct energy consumption: Natural gas, diesel as well as the fuel consumption of the fleets where it is applicable and fugitive emissions of refrigerant gases according to the GHG Protocol standard. For the calculation of these emissions, emission factors from DEFRA (Department for Environment, Food and Rural Affairs) 2025 for the financial year 2025 and DEFRA 2024 for the financial year 2024 have been applied. Santander does not directly use biomass as fuel and therefore does not produce direct biogenic emissions. Santander does not manage emissions subject to regulated Emission Trading Schemes, including the EU-ETS, national ETS and non-EU ETS. The direct emissions in tCO 2e disaggregated by country are: Argentina 1,533 , Brazil 5,859, Chile 536 , Germany 2,138 , Mexico 7,008 , Poland 6,688 , Portugal 542, Spain 5,739, UK 2,354, USA 5,949, Others 1,826. An interpretation error was identified in Brazil regarding the methodology and calculation criteria for Scope 1 emissions in the 2024 exercise. After applying the corporate methodology consistently, Scope 1 emissions for 2024 increase from 35,503 tCO₂e to 40,699 tCO₂e, equivalent to a 14.6% rise in this scope, which is also reflected in the Group’s total emissions, as well as in an equivalent adjustment to our 2030 target. C. These emissions include those derived from electricity consumption and the use of district heating and correspond to Scope 2 defined by the GHG Protocol standard. In 2025 they have been calculated with emission factors of the 2025 edition of the IEA, for 2024 the emission factors of the 2024 edition were used. For the calculation of district heating in Poland and Norway, local public emission factors for 2025 different from DEFRA were used.  Data on biogenic emissions is not included as information on these emissions is not available in the IEA emission factor database. ◦ Indirect emissions Electricity – market-based: For the calculation of these emissions, only renewable electricity is considered as renewable electricity that can be certified by any type of contract or product recognized as such, but not the share of the country energy mix obtained from IEA data (i.e. where non-renewable electricity is purchased expressly). ◦ Indirect Emissions Electricity – location-based: The IEA emission factor for each country has been applied for all electricity purchased, regardless of its source of origin (renewable or non-renewable). The indirect emissions in tCO2e disaggregated by country are: ◦ Market-based: Argentina 0, Brazil 0, Chile 0 , Germany 798, Mexico 0, Poland 6,843,  Portugal 0, Spain 0, UK 0, USA 0, Others 3,883. ◦ Location-based: Argentina 10,336 , Brazil 13,458, Chile 4,529 , Germany 5,112, Mexico 57,194, Poland 20,865,  Portugal 1,817, Spain 21,194 , UK 13,006, USA 14,035, Others 4,238. D. The assessment we conducted to determine the materiality of indirect GHG emissions (scope 3) found that the only material category under this scope was category 3.15 (financed emissions), with a weighting of 99% of the total.. The other categories are identified as not relevant, given its low representativeness.  In addition, the categories disclosed in this table are defined as relevant, and the following categories are identified as not relevant, given their low representativeness: 3.3 - Fuel and energy-related activities (not included in Scope 1 or 2); 3.5 - waste generated in operations; 3.8 - upstream leased assets; 3.10 - processing of sold products; 3.11 - use of sold products; 3.12 - end-of-life treatment of sold products; 3.14 - franchises. Biogenic emissions are not included as information on these emissions is not available in the databases we use to calculate any of the categories. E. Supply chain emissions are calculated using a spend-based approach considering the payments to our suppliers in the current year. For that non primary data obtained from suppliers has been used. These are calculated using the Supply Chain Greenhouse Gas Emission Factors v1.3 from the U.S. Environmental Protection Agency. Our supplier taxonomies are mapped to the sectors considered in the database and then converted into emissions through spend-based emissions factors. Then, different spending taxonomies are grouped based on the GHG scope 3 categories based on their nature (purchased goods and services, capital goods, upstream and downstream transportation) F. For the calculation of these emission factors DEFRA 2025 for fiscal year 2025 and DEFRA 2024 for fiscal year 2024 have been applied. For Brazil’s specific fuels, emissions factors from the Brazilian GHG Protocol Program have been applied. G. Our reduction objectives have been externally assured only in the verification process of the present report. H.  To comply with the regulatory requirements we have extended the financed emissions calculations, in most cases based on factors and other proxies. More details, see table below 3.2. The total absolute financed emissions (scope 3, categories 15 and 13) of this broad scope, including scope 1, 2 and 3 are 222.4 mtCO2e. And the total GHG emissions market-based are 223.9 mtCO2e (285.0 mtCO2e in 2024), and 224.0 mtCO2e location-based (283.8 mtCO2e in 2024). With this figure, the ratio of 'GHG total emissions / Total income' both market and location-based is: 3.8 mtCO2e/EUR bn (Total income figure as disclosed in the Consolidated Income Statements), (4.6 mtCO2e/EUR bn in 2024). To address the Royal Decree 214/2025, the Scope 1 and Scope 2 (market-based) emission data for Spain calculated using the emission factors published by MITECO are 5947 and 0 respectively. Annual report 2025132 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | 3.1. Financed emissions of non-financial corporations, as disclosed in Pillar 3 (2025) | | | | | | Sector | Gross carrying amount (€bn) | GHG financed emissions (scope 1 and scope 2 of the counterparty) (mtCO2 e) | GHG financed emissions (scope 3 of the counterparty) (mtCO2e) | GHG emissions: gross carrying amount percentage of the portfolio derived from company-specific reporting | | Exposures towards sectors that highly contribute to climate change A | 238.5 | 39.7 | 129.6 | 11.3% | | A - Agriculture, forestry and fishing | 7.5 | 6.7 | 3.3 | 0.7% | | B - Mining and quarrying | 10.8 | 4.9 | 29.8 | 17.1% | | C - Manufacturing | 46.0 | 10.6 | 47.1 | 13.2% | | D - Electricity, gas, steam and air conditioning supply | 14.4 | 6.8 | 5.0 | 26.2% | | E - Water supply; sewerage, waste management and remediation activities | 1.5 | 0.8 | 0.4 | 5.9% | | F - Construction | 18.6 | 0.7 | 6.6 | 3.6% | | G - Wholesale and retail trade; repair of motor vehicles and motorcycles | 71.7 | 5.1 | 32.8 | 17.1% | | H - Transportation and storage | 16.1 | 2.5 | 2.9 | 7.9% | | I - Accommodation and food service activities | 10.6 | 0.5 | 1.4 | 1.0% | | L - Real estate activities | 41.3 | 1.0 | 0.3 | 1.6% | | Exposures towards sectors other than those that highly contribute to climate change A | 91.5 | | | | | K - Financial and insurance activities | | | | | | Exposures to other sectors (NACE codes J, M - U) | 91.5 | | | | | TOTAL | 330.0 | 39.7 | 129.6 | | A. In accordance with the Commission delegated regulation EU) 2020/1818 supplementing regulation (EU) 2016/1011 as regards minimum standards for EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks -Climate Benchmark Standards Regulation - Recital 6: Sectors listed in Sections A to H and Section L of Annex I to Regulation (EC) No 1893/2006. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | 3.1. Financed emissions of non-financial corporations, as disclosed in Pillar 3 (2024) | | | | | | Sector | Gross carrying amount (€bn) | GHG financed emissions (scope 1 and scope 2 of the counterparty) (mtCO2 e) | GHG financed emissions (scope 3 of the counterparty) (mtCO2e) | GHG emissions: gross carrying amount percentage of the portfolio derived from company-specific reporting | | Exposures towards sectors that highly contribute to climate change A | 259.3 | 58.6 | 159.3 | 10.1% | | A - Agriculture, forestry and fishing | 8.5 | 8.1 | 3.8 | 0.5% | | B - Mining and quarrying | 11 | 11.8 | 41.5 | 28.2% | | C - Manufacturing | 53.7 | 13.7 | 63.2 | 14.3% | | D - Electricity, gas, steam and air conditioning supply | 13.9 | 10.7 | 7.2 | 23.6% | | E - Water supply; sewerage, waste management and remediation activities | 1.7 | 1.1 | 0.5 | 3.8% | | F - Construction | 18.7 | 0.9 | 4.8 | 2.7% | | G - Wholesale and retail trade; repair of motor vehicles and motorcycles | 77.7 | 6.1 | 31 | 12.1% | | H - Transportation and storage | 17.3 | 4.4 | 5.6 | 9.4% | | I - Accommodation and food service activities | 11.3 | 0.5 | 1.4 | 1.3% | | L - Real estate activities | 45.6 | 1.3 | 0.3 | 1.0% | | Exposures towards sectors other than those that highly contribute to climate change A | 79.2 | | | | | K - Financial and insurance activities | 0 | | | | | Exposures to other sectors (NACE codes J, M - U) | 79.2 | | | | | TOTAL | 338.5 | 58.6 | 159.3 | | A. In accordance with the Commission delegated regulation EU) 2020/1818 supplementing regulation (EU) 2016/1011 as regards minimum standards for EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks -Climate Benchmark Standards Regulation - Recital 6: Sectors listed in Sections A to H and Section L of Annex I to Regulation (EC) No 1893/2006. Annual report 2025133 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 3.2. Financed emissions estimated from balance sheetA (2025) | | | | | | | | Asset | Gross carrying amount assessed (EUR bn) | GHG financed emissions (scope 1 and scope 2) (mtCO 2e) | GHG Scope 1 and 2 (mtCO2 e)/ exposure (EUR bn) | GHG financed emissions (scope 3) (mtCO 2e) | GHG Scope 3 (mtCO2 e)/ exposure (EUR bn) | PCAF ScoreG | | Non-financial corporations (Pillar 3) B | 238.5 | 39.7 | 0.17 | 129.6 | 0.54 | 4.7 | | Mortgagesc | 324.6 | 3.0 | 0.01 | 0 | 0.00 | 3.6 | | Motor vehicle loansD | 151.1 | 16.2 | 0.11 | 0 | 0.00 | 3.9 | | Sovereign debt E | 152.0 | 34.0 | 0.22 | 0 | 0.00 | 4.0 | | TOTALF | 866.2 | 92.8 | 0.11 | 129.6 | 0.15 | | A. This includes scope 3 - category 13 and 15 emissions for regulatory purposes. Santander Polska exposures are excluded as they are classified as assets held for sale. B. These are the financed emissions reported under the EBA Pillar 3 exercise, which should not be confused with the portfolio alignment financed emissions, as the scope and supporting data of the two exercises is different. C. Mortgage financed emissions. Calculated as of 2024, for the UK and Spain, and Portugal. Also extending calculation to rest of group's mortgage portfolio (2025 data). D  Motor vehicle loans financed emissions from loans and leases. That includes the current auto-lending alignment target scope, calculated as of 2024, and other auto exposures within EU consumer finance business and auto-lending in America, calculated with 2025 financial data. E. Sovereign debt at fair value or amortized cost. Financed emissions calculated covers scope 1 including 'Land Use, Land-Use Change and Forestry', following the recommendations by PCAF methodology and using the United Nations Framework Convention on Climate Change official reported emissions factors from the PCAF database. F. Other less emissive assets exposure were calculated last year but deemed not material, in financed emissions terms, and no longer included in the calculations. These emissions represents less than 1% of the total financed emissions. G. As explained below, we had to extrapolate the emissions calculations for some of the exposure assessed for 'Financed emissions estimated from balance sheet'. The PCAF score is an approximation assuming the extrapolations account for PCAF score 5 (worse quality), and the rest is calculated following the PCAF standard recommendations. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 3.2. Financed emissions estimated from balance sheetA (2024) | | | | | | | | Asset | Gross carrying amount assessed (EUR bn) | GHG financed emissions (scope 1 and scope 2) (mtCO 2e) | GHG Scope 1 and 2 (mtCO 2 e)/ exposure (EUR bn) | GHG financed emissions (scope 3) (mtCO 2e) | GHG Scope 3 (mtCO2e)/ exposure (EUR bn) | PCAF ScoreG | | Non-financial corporations (Pillar 3) B | 338.5 | 58.6 | 0.18 | 159.3 | 0.66 | 4.8 | | Mortgagesc | 350.5 | 3.6 | 0.01 | 0.0 | 0.01 | 3.8 | | Motor vehicle loansD | 170.2 | 27.0 | 0.16 | 0.0 | 0.16 | 4.2 | | Sovereign debt E | 155.2 | 33.9 | 0.22 | 0.0 | 0.22 | 2.2 | | TOTALF | 1014.4 | 123.1 | 0.12 | 159.3 | 0.16 | | A. This includes scope 3 - category 13 and 15 emissions for regulatory purposes. B. These are the financed emissions reported under the EBA Pillar 3 exercise, which should not be confused with the portfolio alignment financed emissions, as the scope and supporting data of the two exercises is different. C. Mortgage financed emissions. Calculated as of 2023, for the UK and Spain, and as of 2024 for Poland. Also extending calculation to rest of group's mortgage portfolio (2024 data). D  Motor vehicle loans financed emissions from loans and leases. That includes the current auto-lending alignment target scope, calculated as of 2023, and other auto exposures within EU consumer finance business and auto-lending in America, calculated with 2024 financial data. E. Sovereign debt at fair value or amortized cost. Financed emissions calculated covers scope 1 including 'Land Use, Land-Use Change and Forestry', following the recommendations by PCAF methodology and using the United Nations Framework Convention on Climate Change official reported emissions factors from the PCAF database. F. Other less emissive assets exposure were calculated last year but deemed not material, in financed emissions terms, and no longer included in the calculations. These emissions represents less than 1% of the total financed emissions. G. As explained below, we had to extrapolate the emissions calculations for near 20% of the exposure assessed for 'Financed emissions estimated from balance sheet'. The PCAF score is an approximation assuming the extrapolations account for PCAF score 5 (worse quality), and the rest is calculated following the PCAF standard recommendations. Santander discloses the financed emissions from our balance sheet in this annual report, extending the scope from the emissions calculated with PCAF methodology to a broader scope to cover almost all balance sheet exposures subject to financed emissions calculations, with the only purpose of complying with the disclosure regulation. In the '[SN. 4 Our transition plan](#i6ecb2a0d58d04b53bfadfa2a833efaa7_232)' we disclose the financed emissions of portfolio alignment with reasonable quality of data, with the aim of managing our portfolios with alignment purposes. In this section, we prioritize the completeness of the sustainability information disclosed. This means that the calculations where primarily supported by emissions factors, proxies or approximations, instead of actual reported emissions, to extend the calculation of financed emissions as reasonable as possible. This calculation helps us reach the figures we disclose, although we will continue to work on improving the available data and calculations in the future. For all these reasons, we could expect some volatility in the financed emissions disclosed as better information becomes available over time or as some of the proxies/factors provided by external parties are updated. Annual report 2025134 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | 4. GHG mitigation projects financed through carbon credits | | | | Carbon credits cancelled and used for scopes 1+2 compensation | N (2025) | Comparative (2024) | | Total (tCO2e)A | 51,700 | 59,858 | | Share from removal projectsB (%) | 26% | 15% | | Share from reduction projects  (%) | 74% | 85% | | Share of projects validated by Verra’s VCS | 12% | 13% | | Share of projects validated by Climate Action Reserve | 26% | 15% | | Share of projects validated by Gold Standard | 62% | 72% | | Share from projects within the EU (%) | —% | —% | | Share of carbon credits that qualify as corresponding adjustments (%) | —% | —% | A. Since emissions offsetting is done by country, the upward rounding of tCO2e means that the total amount of credits is slightly higher than the total sum of emissions. B. In 2025, all GHG phase-out mitigation projects are nature-based (biogenic) solutions projects. Santander cancels all credits after purchase in the year. In 2025, 39500 new credits were acquired and cancelled: 33.3% validated by Climate Action Reserve (removal projects) and 66.7% validated by Gold Standard (reduction projects). The existing contractual agreements Santander has in different countries will enable us to obtain 81,073 carbon credits between from now to 2073 year. Cancellation of such credits will be based on the mitigation approach at the time. Banco Santander remains offsetting scope 1 and 2 emissions. As part of our voluntary carbon credit market monitoring, every year we analyse and select a list of initiatives, usually in our core markets. We follow a strict carbon credit selection process that includes due diligence and compliance of our policies. Projects are also certified under some of the industry's most well-known standards. Moreover, all the carbon credits we purchased in 2025 were ratified by an independent rating agency to validate their integrity. | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | 5. Equator Principles | | | | | | | | | | | | | Number of projects | Project Finance | | | | Project Related Corporate Loans | | | | Project-Related Refinance and Project-Related Acquisition for Project Finance | | | | Category | A | B | C | | A | B | C | | A | B | C | | TOTAL 2025 | 7 | 7 | 5 | | 1 | 4 | 0 | | 0 | 0 | 0 | | TOTAL 2024 | 3 | 9 | 3 | | 2 | 3 | 1 | | 0 | 0 | 0 | | Sector bancosantanmagf77.gif | | | | | | | | | | | | | Mining | 0 | 0 | 0 | | 0 | 0 | 0 | | 0 | 0 | 0 | | Infrastructure | 0 | 0 | 0 | | 0 | 1 | 0 | | 0 | 0 | 0 | | Oil & gas | 2 | 0 | 0 | | 0 | 0 | 0 | | 0 | 0 | 0 | | Power | 5 | 6 | 5 | | 0 | 1 | 0 | | 0 | 0 | 0 | | Others | 0 | 1 | 0 | | 1 | 2 | 0 | | 0 | 0 | 0 | | Region bancosantanderfagg10.gif | | | | | | | | | | | | | Americas | 2 | 2 | 1 | | 1 | 2 | 0 | | 0 | 0 | 0 | | Europe, Middle East & Africa | 5 | 4 | 4 | | 0 | 1 | 0 | | 0 | 0 | 0 | | Asia pacific | 0 | 1 | 0 | | 0 | 1 | 0 | | 0 | 0 | 0 | | Type bancosantandergg08.gif | | | | | | | | | | | | | Designated countries A | 6 | 6 | 5 | | 0 | 3 | 0 | | 0 | 0 | 0 | | Non-designated countries | 1 | 1 | 0 | | 1 | 1 | 0 | | 0 | 0 | 0 | | Independent review bancosantaage100a04.gif | | | | | | | | | | | | | Yes | 7 | 6 | 4 | | 1 | 3 | 0 | | 0 | 0 | 0 | | No | 0 | 1 | 1 | | 0 | 1 | 0 | | 0 | 0 | 0 | A. In accordance with the definition of designated countries included in the Equator Principles, with solid environmental and social governance, legislation and institutions to protect their inhabitants and the environment. Category A – Projects with potential significant adverse environmental and social risks and/or impacts that are diverse, irreversible or unprecedented; Category B – Projects with potential limited adverse environmental and social risks and/or impacts that are few in number, generally site-specific, largely reversible and readily addressed through mitigation measures; Category C – Projects with minimal or no adverse environmental and social risks and/or impacts. ![]() 105 Perimeter calculation for GAR, in accordance with the Commission Delegated Regulation (EU) 2021/2178, is based on the prudential consolidated group. In this context, the entities within the Santander Group are consolidated using the full consolidation method, except for jointly controlled entities, which are proportionately consolidated. Companies that cannot be consolidated due to their activity are included using the equity method. The difference between the total assets of the public and prudential perimeters is not significant. This difference is due to the exclusion of non-financial entities and the inclusion of multi-group and intergroup entities, in accordance with this consolidation criterion. Annual report 2025135 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | SN 7.2 #### EU taxonomy tables 105 0. Summary of KPI to be disclosed by credit institutions under Article 8 Taxonomy Regulation - 2025 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | Total environmentally sustainable assets (1) | KPI (3) | KPI (4) | % coverage (over total assets) (5) | % of assets excluded from the numerator of the GAR (Article 7.2 and  7.3 and Section 1.1.2. of Annex V) | % of assets excluded from the denominator of the GAR (Article 7.1 and Section 1.2.4 of Annex V) | | Main KPI | Green asset ratio (GAR) stock | 43,150 | 3.17 | 3.35 | 70.9 | 37.3 | 29.1 | | | | | | | | | | | | | Total environmentally sustainable assets (2) | KPI | KPI | % coverage (over total assets) | % of assets excluded from the numerator of the GAR (Article 7.2 and 7.3 and Section 1.1.2. of Annex V) | % of assets excluded from the denominator of the GAR (Article 7.1 and Section 1.2.4 of Annex V) | | Additional KPI | GAR (flow) | 11,682 | 3.29 | 3.85 | 67.8 | 41.5 | 32.2 | | | Trading book(6) | | | | | | | | | Financial guarantees | 296 | 1.70 | 3.40 | | | | | | Assets under management | 3,533 | 1.90 | 2.70 | | | | | | Fees and commissions income(6) | | | | | | | | | | --- | | | | (1) Total environmentally sustainable assets used for the Turnover KPI. The total environmentally sustainable assets used for the CapEx KPI amount to EUR 45,573 million. | | (2) Total environmentally sustainable assets used for the Turnover KPI. The total environmentally sustainable assets used for the CapEx KPI amount to EUR 13,678 million for the GAR stock, EUR 611 million for financial guarantees and EUR 5,077 million for assets under management. | | (3) Based on the counterparty’s Turnover KPI. | | (4) Based on the counterparty’s CapEx KPI, except in the case of lending activities, where, for general purpose loans, the Turnover KPI is used. | | (5) Percentage of assets covered by the KPI relative to banks’ total assets. | | (6) The KPIs for fees and commissions and for the trading book will only become applicable as from 2026. | Annual report 2025136 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 0. Summary of KPI to be disclosed by credit institutions under Article 8 Taxonomy Regulation - 2024 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | Total environmentally sustainable assets (1) | KPI (3) | KPI (4) | % coverage (over total assets) (5) | % of assets excluded from the numerator of the GAR (Article 7.2 and  7.3 and Section 1.1.2. of Annex V) | % of assets excluded from the denominator of the GAR (Article 7.1 and Section 1.2.4 of Annex V) | | Main KPI | Green asset ratio (GAR) stock | 39,656 | 3.0 | 3.3 | 69.8 | 34.0 | 30.2 | | | | | | | | | | | | | Total environmentally sustainable assets (2) | KPI | KPI | % coverage (over total assets) | % of assets excluded from the numerator of the GAR (Article 7.2 and 7.3 and Section 1.1.2. of Annex V) | % of assets excluded from the denominator of the GAR (Article 7.1 and Section 1.2.4 of Annex V) | | Additional KPI | GAR (flow) | 7,862 | 2.63 | 3.35 | 65.9 | 40.7 | 34.1 | | | Trading book(6) | | | | | | | | | Financial guarantees | 249 | 1.47 | 3.46 | | | | | | Assets under management | 2,047 | 1.3 | 2.14 | | | | | | Fees and commissions income(6) | | | | | | | | | | --- | | | | (1) Total environmentally sustainable assets used for turnover KPI. Total environmentally sustainable assets used for Capex KPI amounts to EUR 42,834 million. | | (2) Total environmentally sustainable assets used for turnover KPI. Total environmentally sustainable assets used for Capex KPI amounts to EUR 10,009 million for GAR flow, EUR 585 million for financial guarantees and EUR 3,360 million for assets under management . | | (3) Based on the Turnover KPI of the counterparty. | | (4) Based on the CapEx KPI of the counterparty. | | (5) % of assets covered by the KPI over banks´ total assets. | | (6) Fees and Commissions and Trading Book KPIs shall only apply starting 2026. | 106 For presentation purposes, the breakdowns relating to the degree of portfolio alignment with the objectives of Biodiversity, Circular Economy, Pollution Prevention and Control, and Water and Marine Resources are not included in these templates, as they are not material in the context of the Taxonomy disclosures, given that their impact on the GAR ratio is residual (eligibility below 0.03% and alignment below 0.007% in all cases). Annual report 2025137 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 1. Assets for the calculation of GAR (Capex) - 2025 106 | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | Million EUR | | 2024 | | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | Total [gross] carrying amount | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | GAR - Covered assets in both numerator and denominator | | | | | | | | | | | | | | | | | | | 1 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 640,063 | 425,367 | 45,540 | 40,112 | 12,135 | 2,212 | | 72 | 33 | 0 | 21 | | 425,439 | 45,573 | 40,112 | 12,135 | 2,233 | | 2 | Financial undertakings | 26,147 | 4,820 | 1,459 | 0 | 54 | 506 | | 10 | 3 | 0 | 0 | | 4,830 | 1,463 | 0 | 54 | 506 | | 3 | Credit institutions | 17,570 | 2,581 | 283 | 0 | 22 | 29 | | 5 | 1 | 0 | 0 | | 2,587 | 284 | 0 | 22 | 29 | | 4 | Loans and advances | 16,746 | 2,447 | 256 | 0 | 21 | 28 | | 5 | 1 | 0 | 0 | | 2,452 | 257 | 0 | 21 | 28 | | 5 | Debt securities, including UoP (Use of Proceeds) | 824 | 134 | 26 | 0 | 1 | 1 | | 0 | 0 | 0 | 0 | | 134 | 26 | 0 | 1 | 1 | | 6 | Equity instruments | 0 | 0 | 0 | | 0 | 0 | | 0 | 0 | | 0 | | 0 | 0 | | 0 | 0 | | 7 | Other financial corporations | 8,578 | 2,239 | 1,177 | 0 | 32 | 477 | | 5 | 2 | 0 | 0 | | 2,244 | 1,179 | 0 | 32 | 477 | | 8 | of which investment firms | 1,842 | 611 | 313 | 0 | 0 | 112 | | 2 | 1 | 0 | 0 | | 613 | 313 | 0 | 0 | 112 | | 9 | Loans and advances | 1,783 | 606 | 312 | 0 | 0 | 112 | | 2 | 1 | 0 | 0 | | 608 | 312 | 0 | 0 | 112 | | 10 | Debt securities, including UoP | 59 | 5 | 1 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 5 | 1 | 0 | 0 | 0 | | 11 | Equity instruments | 0 | 0 | 0 | | 0 | 0 | | 0 | 0 | | 0 | | 0 | 0 | | 0 | 0 | | 12 | of which  management companies | 110 | 3 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 3 | 0 | 0 | 0 | 0 | | 13 | Loans and advances | 108 | 3 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 3 | 0 | 0 | 0 | 0 | | 14 | Debt securities, including UoP | 0 | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 | | 15 | Equity instruments | 2 | 0 | 0 | | 0 | 0 | | 0 | 0 | | 0 | | 0 | 0 | | 0 | 0 | | 16 | of which insurance undertakings | 2,496 | 190 | 16 | 0 | 1 | 2 | | 0 | 0 | 0 | 0 | | 190 | 16 | 0 | 1 | 2 | | 17 | Loans and advances | 2,049 | 183 | 12 | 0 | 1 | 0 | | 0 | 0 | 0 | 0 | | 184 | 12 | 0 | 1 | 0 | | 18 | Debt securities, including UoP | 328 | 6 | 5 | 0 | 0 | 1 | | 0 | 0 | 0 | 0 | | 6 | 5 | 0 | 0 | 1 | | 19 | Equity instruments | 119 | 0 | 0 | | 0 | 0 | | 0 | 0 | | 0 | | 0 | 0 | | 0 | 0 | | 20 | Non-financial undertakings | 27,473 | 8,504 | 3,968 | 0 | 91 | 1,706 | | 62 | 30 | 0 | 20 | | 8,566 | 3,998 | 0 | 91 | 1,727 | | 21 | Loans and advances | 25,611 | 7,865 | 3,517 | 0 | 89 | 1,646 | | 49 | 18 | 0 | 9 | | 7,914 | 3,534 | 0 | 89 | 1,655 | | 22 | Debt securities, including UoP | 1,843 | 636 | 451 | 0 | 2 | 60 | | 11 | 10 | 0 | 10 | | 648 | 461 | 0 | 2 | 70 | | 23 | Equity instruments | 19 | 3 | 1 | | 0 | 1 | | 1 | 1 | | 1 | | 4 | 2 | | 0 | 2 | | 24 | Households | 582,241 | 410,097 | 40,112 | 40,112 | 11,990 | 0 | | 0 | 0 | 0 | 0 | | 410,097 | 40,112 | 40,112 | 11,990 | 0 | | 25 | of which loans collateralised by residential immovable property | 343,443 | 316,028 | 28,123 | 28,123 | 0 | 0 | | 0 | 0 | 0 | 0 | | 316,028 | 28,123 | 28,123 | 0 | 0 | Annual report 2025138 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | Million EUR | | 2024 | | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | Total [gross] carrying amount | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 26 | of which building renovation loans | 1,286 | 1,286 | 3 | 3 | 3 | 0 | | 0 | 0 | 0 | 0 | | 1,286 | 3 | 3 | 3 | 0 | | 27 | of which motor vehicle loans | 92,783 | 92,783 | 11,987 | 11,987 | 11,987 | 0 | | | | | | | 92,783 | 11,987 | 11,987 | 11,987 | 0 | Annual report 2025139 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | Million EUR | | 2024 | | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | Total [gross] carrying amount | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 28 | Local governments financing | 4,202 | 1,946 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 1,946 | 0 | 0 | 0 | 0 | | 29 | Housing financing | 144 | 140 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 140 | 0 | 0 | 0 | 0 | | 30 | Other local government financing | 4,058 | 1,806 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 1,806 | 0 | 0 | 0 | 0 | | 31 | Collateral obtained by taking possession: residential and commercial immovable properties | 4,505 | 49 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 49 | 0 | 0 | 0 | 0 | | 32 | Assets excluded from the numerator for GAR calculation (covered in the denominator) | 714,794 | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 | | 33 | Financial and Non-financial undertakings | 450,321 | | | | | | | | | | | | | | | | | | 34 | SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations | 120,681 | | | | | | | | | | | | | | | | | | 35 | Loans and advances | 118,610 | | | | | | | | | | | | | | | | | | 36 | of which loans collateralised by commercial immovable property | 15,237 | | | | | | | | | | | | | | | | | | 37 | of which building renovation loans | 1,586 | | | | | | | | | | | | | | | | | | 38 | Debt securities | 1,719 | | | | | | | | | | | | | | | | | | 39 | Equity instruments | 352 | | | | | | | | | | | | | | | | | | 40 | Non-EU country counterparties not subject to NFRD disclosure obligations | 329,640 | | | | | | | | | | | | | | | | | | 41 | Loans and advances | 290,038 | | | | | | | | | | | | | | | | | | 42 | Debt securities | 35,079 | | | | | | | | | | | | | | | | | | 43 | Equity instruments | 4,523 | | | | | | | | | | | | | | | | | | 44 | Derivatives | 4,030 | | | | | | | | | | | | | | | | | | 45 | On demand interbank loans | 9,650 | | | | | | | | | | | | | | | | | | 46 | Cash and cash-related assets | 7,344 | | | | | | | | | | | | | | | | | | 47 | Other categories of assets (e.g. Goodwill, commodities etc.) | 243,449 | | | | | | | | | | | | | | | | | | 48 | Total GAR assets | 1,359,362 | 425,416 | 45,540 | 40,112 | 12,135 | 2,212 | | 72 | 33 | 0 | 21 | | 425,488 | 45,573 | 40,112 | 12,135 | 2,233 | | 49 | Assets not covered for GAR calculation | 558,430 | | | | | | | | | | | | | | | | | | 50 | Central governments and Supranational issuers | 149,320 | | | | | | | | | | | | | | | | | | 51 | Central banks exposure | 156,831 | | | | | | | | | | | | | | | | | ![]() 107 The assets under management taken into account in this template covers the whole Group. Annual report 2025140 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | Million EUR | | 2024 | | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | Total [gross] carrying amount | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 52 | Trading book | 252,279 | | | | | | | | | | | | | | | | | | 53 | Total assets | 1,917,792 | 425,416 | 45,540 | 40,112 | 12,135 | 2,212 | | 72 | 33 | 0 | 21 | | 425,488 | 45,573 | 40,112 | 12,135 | 2,233 | | Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations | | | | | | | | | | | | | | | | | | | | 54 | Financial guarantees | 17,728 | 1,323 | 610 | 0 | 50 | 407 | | 21 | 1 | 0 | 1 | | 1,344 | 611 | 0 | 50 | 407 | | 55 | Assets under management 107 | 184,693 | 18,080 | 4,946 | 0 | 260 | 2,123 | | 154 | 131 | 0 | 4 | | 18,234 | 5,077 | 0 | 260 | 2,127 | | 56 | Of which debt securities | 73,146 | 12,031 | 2,703 | 0 | 131 | 1,363 | | 120 | 108 | 0 | 3 | | 12,150 | 2,811 | 0 | 131 | 1,366 | | 57 | Of which equity instruments | 77,939 | 6,050 | 2,243 | 0 | 129 | 760 | | 34 | 23 | 0 | 1 | | 6,084 | 2,266 | 0 | 129 | 761 | 108 For presentation purposes, the breakdowns relating to the degree of portfolio alignment with the objectives of Biodiversity, Circular Economy, Pollution Prevention and Control, and Water and Marine Resources are not included in these templates, as they are not material in the context of the Taxonomy disclosures, given that their impact on the GAR ratio is residual (eligibility below 0.03% and alignment below 0.007% in all cases). Annual report 2025141 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 1. Assets for the calculation of GAR (Turnover) - 2025 108 | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | Million EUR | | 2025 | | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | Total [gross] carrying amount | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | GAR - Covered assets in both numerator and denominator | | | | | | | | | | | | | | | | | | | 1 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 640,063 | 423,342 | 43,105 | 40,112 | 12,095 | 1,460 | | 377 | 44 | 0 | 43 | | 423,720 | 43,150 | 40,112 | 12,095 | 1,502 | | 2 | Financial undertakings | 26,147 | 4,529 | 944 | 0 | 32 | 367 | | 330 | 35 | 0 | 33 | | 4,859 | 979 | 0 | 32 | 400 | | 3 | Credit institutions | 17,570 | 2,964 | 498 | 0 | 20 | 129 | | 49 | 30 | 0 | 29 | | 3,014 | 528 | 0 | 20 | 158 | | 4 | Loans and advances | 16,746 | 2,835 | 450 | 0 | 19 | 129 | | 49 | 30 | 0 | 29 | | 2,885 | 480 | 0 | 19 | 157 | | 5 | Debt securities, including UoP | 824 | 129 | 47 | 0 | 1 | 1 | | 0 | 0 | 0 | 0 | | 129 | 47 | 0 | 1 | 1 | | 6 | Equity instruments | 0 | 0 | 0 | | 0 | 0 | | 0 | 0 | | 0 | | 0 | 0 | | 0 | 0 | | 7 | Other financial corporations | 8,578 | 1,565 | 447 | 0 | 12 | 237 | | 281 | 5 | 0 | 5 | | 1,846 | 452 | 0 | 12 | 242 | | 8 | of which investment firms | 1,842 | 157 | 70 | 0 | 0 | 47 | | 1 | 0 | 0 | 0 | | 157 | 70 | 0 | 0 | 47 | | 9 | Loans and advances | 1,783 | 140 | 69 | 0 | 0 | 47 | | 1 | 0 | 0 | 0 | | 140 | 69 | 0 | 0 | 47 | | 10 | Debt securities, including UoP | 59 | 17 | 1 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 17 | 1 | 0 | 0 | 0 | | 11 | Equity instruments | 0 | 0 | 0 | | 0 | 0 | | 0 | 0 | | 0 | | 0 | 0 | | 0 | 0 | | 12 | of which  management companies | 110 | 54 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 54 | 0 | 0 | 0 | 0 | | 13 | Loans and advances | 108 | 54 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 54 | 0 | 0 | 0 | 0 | | 14 | Debt securities, including UoP | 0 | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 | | 15 | Equity instruments | 2 | 0 | 0 | | 0 | 0 | | 0 | 0 | | 0 | | 0 | 0 | | 0 | 0 | | 16 | of which insurance undertakings | 2,496 | 185 | 11 | 0 | 1 | 2 | | 279 | 4 | 0 | 4 | | 464 | 15 | 0 | 1 | 6 | | 17 | Loans and advances | 2,049 | 180 | 9 | 0 | 1 | 0 | | 40 | 1 | 0 | 1 | | 220 | 10 | 0 | 1 | 1 | | 18 | Debt securities, including UoP | 328 | 4 | 2 | 0 | 0 | 1 | | 239 | 3 | 0 | 3 | | 244 | 6 | 0 | 0 | 5 | | 19 | Equity instruments | 119 | 0 | 0 | | 0 | 0 | | 0 | 0 | | 0 | | 0 | 0 | | 0 | 0 | | 20 | Non-financial undertakings | 27,473 | 6,771 | 2,049 | 0 | 74 | 1,093 | | 47 | 9 | 0 | 9 | | 6,818 | 2,058 | 0 | 74 | 1,102 | | 21 | Loans and advances | 25,611 | 6,444 | 1,812 | 0 | 74 | 1,055 | | 39 | 6 | 0 | 6 | | 6,484 | 1,818 | 0 | 74 | 1,061 | | 22 | Debt securities, including UoP | 1,843 | 326 | 236 | 0 | 0 | 38 | | 4 | 0 | 0 | 0 | | 330 | 236 | 0 | 0 | 38 | | 23 | Equity instruments | 19 | 1 | 0 | | 0 | 0 | | 3 | 3 | | 3 | | 4 | 4 | | 0 | 4 | | 24 | Households | 582,241 | 410,097 | 40,112 | 40,112 | 11,990 | 0 | | 0 | 0 | 0 | 0 | | 410,097 | 40,112 | 40,112 | 11,990 | 0 | | 25 | of which loans collateralised by residential immovable property | 343,443 | 316,028 | 28,123 | 28,123 | 0 | 0 | | 0 | 0 | 0 | 0 | | 316,028 | 28,123 | 28,123 | 0 | 0 | | 26 | of which building renovation loans | 1,286 | 1,286 | 3 | 3 | 3 | 0 | | 0 | 0 | 0 | 0 | | 1,286 | 3 | 3 | 3 | 0 | Annual report 2025142 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | Million EUR | | 2025 | | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | Total [gross] carrying amount | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 27 | of which motor vehicle loans | 92,783 | 92,783 | 11,987 | 11,987 | 11,987 | 0 | | | | | | | 92,783 | 11,987 | 11,987 | 11,987 | 0 | | 28 | Local governments financing | 4,202 | 1,946 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 1,946 | 0 | 0 | 0 | 0 | | 29 | Housing financing | 144 | 140 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 140 | 0 | 0 | 0 | 0 | | 30 | Other local government financing | 4,058 | 1,806 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 1,806 | 0 | 0 | 0 | 0 | | 31 | Collateral obtained by taking possession: residential and commercial immovable properties | 4,505 | 49 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 49 | 0 | 0 | 0 | 0 | | 32 | Assets excluded from the numerator for GAR calculation (covered in the denominator) | 714,794 | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 | | 33 | Financial and Non-financial undertakings | 450,321 | | | | | | | | | | | | | | | | | | 34 | SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations | 120,681 | | | | | | | | | | | | | | | | | | 35 | Loans and advances | 118,610 | | | | | | | | | | | | | | | | | | 36 | of which loans collateralised by commercial immovable property | 15,237 | | | | | | | | | | | | | | | | | | 37 | of which building renovation loans | 1,586 | | | | | | | | | | | | | | | | | | 38 | Debt securities | 1,719 | | | | | | | | | | | | | | | | | | 39 | Equity instruments | 352 | | | | | | | | | | | | | | | | | | 40 | Non-EU country counterparties not subject to NFRD disclosure obligations | 329,640 | | | | | | | | | | | | | | | | | | 41 | Loans and advances | 290,038 | | | | | | | | | | | | | | | | | | 42 | Debt securities | 35,079 | | | | | | | | | | | | | | | | | | 43 | Equity instruments | 4,523 | | | | | | | | | | | | | | | | | | 44 | Derivatives | 4,030 | | | | | | | | | | | | | | | | | | 45 | On demand interbank loans | 9,650 | | | | | | | | | | | | | | | | | | 46 | Cash and cash-related assets | 7,344 | | | | | | | | | | | | | | | | | | 47 | Other categories of assets (e.g. Goodwill, commodities etc.) | 243,449 | | | | | | | | | | | | | | | | | | 48 | Total GAR assets | 1,359,362 | 423,391 | 43,105 | 40,112 | 12,095 | 1,460 | | 377 | 44 | 0 | 43 | | 423,768 | 43,150 | 40,112 | 12,095 | 1,502 | | 49 | Assets not covered for GAR calculation | 558,430 | | | | | | | | | | | | | | | | | | 50 | Central governments and Supranational issuers | 149,320 | | | | | | | | | | | | | | | | | 109 The assets under management taken into account in this template covers the whole Group. Annual report 2025143 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | Million EUR | | 2025 | | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | Total [gross] carrying amount | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 51 | Central banks exposure | 156,831 | | | | | | | | | | | | | | | | | | 52 | Trading book | 252,279 | | | | | | | | | | | | | | | | | | 53 | Total assets | 1,917,792 | 423,391 | 43,105 | 40,112 | 12,095 | 1,460 | | 377 | 44 | 0 | 43 | | 423,768 | 43,150 | 40,112 | 12,095 | 1,502 | | Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations | | | | | | | | | | | | | | | | | | | | 54 | Financial guarantees | 17,728 | 968 | 292 | 0 | 19 | 212 | | 31 | 5 | 0 | 5 | | 999 | 296 | 0 | 19 | 217 | | 55 | Assets under management 109 | 184,693 | 17,619 | 3,495 | 0 | 122 | 1,547 | | 818 | 38 | 0 | 37 | | 18,437 | 3,533 | 0 | 122 | 1,583 | | 56 | Of which debt securities | 73,146 | 10,923 | 1,647 | 0 | 49 | 809 | | 321 | 20 | 0 | 20 | | 11,243 | 1,667 | 0 | 49 | 828 | | 57 | Of which equity instruments | 77,939 | 6,696 | 1,848 | 0 | 73 | 738 | | 497 | 18 | 0 | 17 | | 7,194 | 1,866 | 0 | 73 | 755 | Annual report 2025144 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 1. Assets for the calculation of GAR (Capex) - 2024 | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | Million EUR | | 2024 | | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | Total [gross] carrying amount | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | GAR - Covered assets in both numerator and denominator | | | | | | | | | | | | | | | | | | | 1 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 664,610 | 447,158 | 42,818 | 36,969 | 9,508 | 2,202 | | 101 | 17 | 0 | 3 | | 447,259 | 42,834 | 36,969 | 9,508 | 2,206 | | 2 | Financial undertakings | 25,544 | 5,704 | 1,600 | 0 | 28 | 432 | | 27 | 2 | 0 | 0 | | 5,732 | 1,602 | 0 | 28 | 432 | | 3 | Credit institutions | 18,208 | 3,332 | 312 | 0 | 1 | 12 | | 24 | 2 | 0 | 0 | | 3,356 | 314 | 0 | 1 | 12 | | 4 | Loans and advances | 16,848 | 3,097 | 293 | 0 | 1 | 12 | | 11 | 2 | 0 | 0 | | 3,108 | 295 | 0 | 1 | 12 | | 5 | Debt securities, including UoP (Use of Proceeds) | 1,360 | 235 | 19 | 0 | 0 | 0 | | 13 | 0 | 0 | 0 | | 248 | 19 | 0 | 0 | 0 | | 6 | Equity instruments | 0 | 0 | 0 | | 0 | 0 | | 0 | 0 | | 0 | | 0 | 0 | | 0 | 0 | | 7 | Other financial corporations | 7,336 | 2,372 | 1,288 | 0 | 28 | 420 | | 4 | 0 | 0 | 0 | | 2,376 | 1,289 | 0 | 28 | 420 | | 8 | of which investment firms | 2,300 | 975 | 878 | 0 | 0 | 233 | | 0 | 0 | 0 | 0 | | 975 | 878 | 0 | 0 | 233 | | 9 | Loans and advances | 1,778 | 528 | 439 | 0 | 0 | 136 | | 0 | 0 | 0 | 0 | | 528 | 439 | 0 | 0 | 136 | | 10 | Debt securities, including UoP | 523 | 447 | 439 | 0 | 0 | 98 | | 0 | 0 | 0 | 0 | | 447 | 439 | 0 | 0 | 98 | | 11 | Equity instruments | 0 | 0 | 0 | | 0 | 0 | | 0 | 0 | | 0 | | 0 | 0 | | 0 | 0 | | 12 | of which  management companies | 258 | 101 | 8 | 0 | 0 | 5 | | 0 | 0 | 0 | 0 | | 102 | 8 | 0 | 0 | 5 | | 13 | Loans and advances | 176 | 61 | 3 | 0 | 0 | 3 | | 0 | 0 | 0 | 0 | | 61 | 3 | 0 | 0 | 3 | | 14 | Debt securities, including UoP | 80 | 41 | 5 | 0 | 0 | 2 | | 0 | 0 | 0 | 0 | | 41 | 5 | 0 | 0 | 2 | | 15 | Equity instruments | 2 | 0 | 0 | | 0 | 0 | | 0 | 0 | | 0 | | 0 | 0 | | 0 | 0 | | 16 | of which insurance undertakings | 2,050 | 246 | 9 | 0 | 0 | 0 | | 2 | 0 | 0 | 0 | | 247 | 9 | 0 | 0 | 0 | | 17 | Loans and advances | 1,931 | 246 | 9 | 0 | 0 | 0 | | 2 | 0 | 0 | 0 | | 247 | 9 | 0 | 0 | 0 | | 18 | Debt securities, including UoP | 0 | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 | | 19 | Equity instruments | 119 | 0 | 0 | | 0 | 0 | | 0 | 0 | | 0 | | 0 | 0 | | 0 | 0 | | 20 | Non-financial undertakings | 28,232 | 11,539 | 4,248 | 0 | 648 | 1,771 | | 73 | 15 | 0 | 3 | | 11,612 | 4,263 | 0 | 648 | 1,774 | | 21 | Loans and advances | 26,333 | 10,918 | 3,827 | 0 | 646 | 1,508 | | 65 | 6 | 0 | 3 | | 10,983 | 3,833 | 0 | 646 | 1,511 | | 22 | Debt securities, including UoP | 1,891 | 620 | 420 | 0 | 1 | 262 | | 8 | 8 | 0 | 1 | | 628 | 428 | 0 | 1 | 263 | | 23 | Equity instruments | 8 | 1 | 1 | | 0 | 0 | | 0 | 0 | 0 | 0 | | 1 | 1 | | 0 | 0 | | 24 | Households | 609,668 | 428,942 | 36,969 | 36,969 | 8,832 | 0 | | 0 | 0 | 0 | 0 | | 428,942 | 36,969 | 36,969 | 8,832 | 0 | | 25 | of which loans collateralised by residential immovable property | 362,813 | 331,277 | 28,137 | 28,137 | 0 | 0 | | 0 | 0 | 0 | 0 | | 331,277 | 28,137 | 28,137 | 0 | 0 | | 26 | of which building renovation loans | 1,189 | 1,189 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 1,189 | 0 | 0 | 0 | 0 | | 27 | of which motor vehicle loans | 96,477 | 96,477 | 8,832 | 8,832 | 8,832 | 0 | | | | | | | 96,477 | 8,832 | 8,832 | 8,832 | 0 | Annual report 2025145 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | Million EUR | | 2024 | | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | Total [gross] carrying amount | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 28 | Local governments financing | 1,166 | 973 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 973 | 0 | 0 | 0 | 0 | | 29 | Housing financing | 155 | 153 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 153 | 0 | 0 | 0 | 0 | | 30 | Other local government financing | 1,012 | 819 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 819 | 0 | 0 | 0 | 0 | | 31 | Collateral obtained by taking possession: residential and commercial immovable properties | 4,825 | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 | | 32 | Assets excluded from the numerator for GAR calculation (covered in the denominator) | 637,106 | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 | | 33 | Financial and Non-financial undertakings | 438,149 | | | | | | | | | | | | | | | | | | 34 | SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations | 134,206 | | | | | | | | | | | | | | | | | | 35 | Loans and advances | 132,387 | | | | | | | | | | | | | | | | | | 36 | of which loans collateralised by commercial immovable property | 23,620 | | | | | | | | | | | | | | | | | | 37 | of which building renovation loans | 1,704 | | | | | | | | | | | | | | | | | | 38 | Debt securities | 1,575 | | | | | | | | | | | | | | | | | | 39 | Equity instruments | 244 | | | | | | | | | | | | | | | | | | 40 | Non-EU country counterparties not subject to NFRD disclosure obligations | 303,944 | | | | | | | | | | | | | | | | | | 41 | Loans and advances | 276,247 | | | | | | | | | | | | | | | | | | 42 | Debt securities | 24,306 | | | | | | | | | | | | | | | | | | 43 | Equity instruments | 3,391 | | | | | | | | | | | | | | | | | | 44 | Derivatives | 5,772 | | | | | | | | | | | | | | | | | | 45 | On demand interbank loans | 12,146 | | | | | | | | | | | | | | | | | | 46 | Cash and cash-related assets | 9,252 | | | | | | | | | | | | | | | | | | 47 | Other categories of assets (e.g. Goodwill, commodities etc.) | 171,788 | | | | | | | | | | | | | | | | | | 48 | Total GAR assets | 1,306,542 | 447,158 | 42,818 | 36,969 | 9,508 | 2,202 | | 101 | 17 | 0 | 3 | | 447,259 | 42,834 | 36,969 | 9,508 | 2,206 | | 49 | Assets not covered for GAR calculation | 565,848 | | | | | | | | | | | | | | | | | | 50 | Central governments and Supranational issuers | 142,309 | | | | | | | | | | | | | | | | | | 51 | Central banks exposure | 193,354 | | | | | | | | | | | | | | | | | 110 The assets under management taken into account in this template covers the whole Group. Annual report 2025146 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | Million EUR | | 2024 | | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | Total [gross] carrying amount | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 52 | Trading book | 230,185 | | | | | | | | | | | | | | | | | | 53 | Total assets | 1,872,390 | 447,158 | 42,818 | 36,969 | 9,508 | 2,202 | | 101 | 17 | 0 | 3 | | 447,259 | 42,834 | 36,969 | 9,508 | 2,206 | | Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations | | | | | | | | | | | | | | | | | | | | 54 | Financial guarantees | 16,898 | 1,282 | 570 | 0 | 47 | 387 | | 39 | 15 | 0 | 4 | | 1,320 | 585 | 0 | 47 | 390 | | 55 | Assets under management 110 | 156,908 | 13,238 | 3,345 | 0 | 184 | 1,419 | | 348 | 15 | 0 | 1 | | 13,586 | 3,360 | 0 | 184 | 1,420 | | 56 | Of which debt securities | 71,062 | 8,288 | 1,665 | 0 | 96 | 752 | | 292 | 2 | 0 | 0 | | 8,580 | 1,668 | 0 | 96 | 752 | | 57 | Of which equity instruments | 63,320 | 4,744 | 1,616 | 0 | 86 | 642 | | 54 | 12 | 0 | 1 | | 4,798 | 1,628 | 0 | 86 | 643 | Annual report 2025147 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 1. Assets for the calculation of GAR (Turnover) - 2024 | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | Million EUR | | 2024 | | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | Total [gross] carrying amount | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | GAR - Covered assets in both numerator and denominator | | | | | | | | | | | | | | | | | | | 1 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 664,610 | 444,137 | 39,615 | 36,969 | 8,952 | 1,412 | | 365 | 41 | 0 | 18 | | 444,503 | 39,656 | 36,969 | 8,952 | 1,431 | | 2 | Financial undertakings | 25,544 | 4,921 | 776 | 0 | 3 | 280 | | 289 | 21 | 0 | 2 | | 5,210 | 798 | 0 | 3 | 281 | | 3 | Credit institutions | 18,208 | 3,265 | 280 | 0 | 0 | 5 | | 25 | 2 | 0 | 0 | | 3,290 | 281 | 0 | 0 | 5 | | 4 | Loans and advances | 16,848 | 3,028 | 260 | 0 | 0 | 5 | | 12 | 2 | 0 | 0 | | 3,040 | 262 | 0 | 0 | 5 | | 5 | Debt securities, including UoP | 1,360 | 237 | 19 | 0 | 0 | 0 | | 13 | 0 | 0 | 0 | | 250 | 19 | 0 | 0 | 0 | | 6 | Equity instruments | 0 | 0 | 0 | | 0 | 0 | | 0 | 0 | | 0 | | 0 | 0 | | 0 | 0 | | 7 | Other financial corporations | 7,336 | 1,656 | 497 | 0 | 2 | 274 | | 264 | 20 | 0 | 2 | | 1,919 | 516 | 0 | 2 | 276 | | 8 | of which investment firms | 2,300 | 392 | 263 | 0 | 0 | 141 | | 43 | 4 | 0 | 2 | | 435 | 268 | 0 | 0 | 143 | | 9 | Loans and advances | 1,778 | 174 | 68 | 0 | 0 | 47 | | 43 | 4 | 0 | 2 | | 217 | 72 | 0 | 0 | 49 | | 10 | Debt securities, including UoP | 523 | 218 | 196 | 0 | 0 | 94 | | 0 | 0 | 0 | 0 | | 218 | 196 | 0 | 0 | 94 | | 11 | Equity instruments | 0 | 0 | 0 | | 0 | 0 | | 0 | 0 | | 0 | | 0 | 0 | | 0 | 0 | | 12 | of which  management companies | 258 | 122 | 6 | 0 | 0 | 4 | | 0 | 0 | 0 | 0 | | 122 | 6 | 0 | 0 | 4 | | 13 | Loans and advances | 176 | 120 | 6 | 0 | 0 | 4 | | 0 | 0 | 0 | 0 | | 121 | 6 | 0 | 0 | 4 | | 14 | Debt securities, including UoP | 80 | 1 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 1 | 0 | 0 | 0 | 0 | | 15 | Equity instruments | 2 | 0 | 0 | | 0 | 0 | | 0 | 0 | | 0 | | 0 | 0 | | 0 | 0 | | 16 | of which insurance undertakings | 2,050 | 244 | 7 | 0 | 0 | 0 | | 219 | 15 | 0 | 0 | | 462 | 22 | 0 | 0 | 0 | | 17 | Loans and advances | 1,931 | 244 | 7 | 0 | 0 | 0 | | 219 | 15 | 0 | 0 | | 462 | 22 | 0 | 0 | 0 | | 18 | Debt securities, including UoP | 0 | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 | | 19 | Equity instruments | 119 | 0 | 0 | | 0 | 0 | | 0 | 0 | | 0 | | 0 | 0 | | 0 | 0 | | 20 | Non-financial undertakings | 28,232 | 9,302 | 1,869 | 0 | 117 | 1,133 | | 76 | 20 | 0 | 17 | | 9,378 | 1,889 | 0 | 117 | 1,149 | | 21 | Loans and advances | 26,333 | 9,014 | 1,648 | 0 | 117 | 936 | | 70 | 16 | 0 | 16 | | 9,084 | 1,664 | 0 | 117 | 952 | | 22 | Debt securities, including UoP | 1,891 | 288 | 221 | 0 | 0 | 197 | | 7 | 3 | 0 | 0 | | 294 | 224 | 0 | 0 | 197 | | 23 | Equity instruments | 8 | 0 | 0 | | 0 | 0 | | 0 | 0 | | 0 | | 0 | 0 | | 0 | 0 | | 24 | Households | 609,668 | 428,942 | 36,969 | 36,969 | 8,832 | 0 | | 0 | 0 | 0 | 0 | | 428,942 | 36,969 | 36,969 | 8,832 | 0 | | 25 | of which loans collateralised by residential immovable property | 362,813 | 331,277 | 28,137 | 28,137 | 0 | 0 | | 0 | 0 | 0 | 0 | | 331,277 | 28,137 | 28,137 | 0 | 0 | | 26 | of which building renovation loans | 1,189 | 1,189 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 1,189 | 0 | 0 | 0 | 0 | | 27 | of which motor vehicle loans | 96,477 | 96,477 | 8,832 | 8,832 | 8,832 | 0 | | | | | | | 96,477 | 8,832 | 8,832 | 8,832 | 0 | | 28 | Local governments financing | 1,166 | 973 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 973 | 0 | 0 | 0 | 0 | | 29 | Housing financing | 155 | 153 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 153 | 0 | 0 | 0 | 0 | | 30 | Other local government financing | 1,012 | 819 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 819 | 0 | 0 | 0 | 0 | 111 The assets under management taken into account in this template covers the whole Group. Annual report 2025148 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | Million EUR | | 2024 | | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | Total [gross] carrying amount | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 31 | Collateral obtained by taking possession: residential and commercial immovable properties | 4,825 | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 | | 32 | Assets excluded from the numerator for GAR calculation (covered in the denominator) | 637,106 | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 | | 33 | Financial and Non-financial undertakings | 438,149 | | | | | | | | | | | | | | | | | | 34 | SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations | 134,206 | | | | | | | | | | | | | | | | | | 35 | Loans and advances | 132,387 | | | | | | | | | | | | | | | | | | 36 | of which loans collateralised by commercial immovable property | 23,620 | | | | | | | | | | | | | | | | | | 37 | of which building renovation loans | 1,704 | | | | | | | | | | | | | | | | | | 38 | Debt securities | 1,575 | | | | | | | | | | | | | | | | | | 39 | Equity instruments | 244 | | | | | | | | | | | | | | | | | | 40 | Non-EU country counterparties not subject to NFRD disclosure obligations | 303,944 | | | | | | | | | | | | | | | | | | 41 | Loans and advances | 276,247 | | | | | | | | | | | | | | | | | | 42 | Debt securities | 24,306 | | | | | | | | | | | | | | | | | | 43 | Equity instruments | 3,391 | | | | | | | | | | | | | | | | | | 44 | Derivatives | 5,772 | | | | | | | | | | | | | | | | | | 45 | On demand interbank loans | 12,146 | | | | | | | | | | | | | | | | | | 46 | Cash and cash-related assets | 9,252 | | | | | | | | | | | | | | | | | | 47 | Other categories of assets (e.g. Goodwill, commodities etc.) | 171,788 | | | | | | | | | | | | | | | | | | 48 | Total GAR assets | 1,306,542 | 444,137 | 39,615 | 36,969 | 8,952 | 1,412 | | 365 | 41 | 0 | 18 | | 444,503 | 39,656 | 36,969 | 8,952 | 1,431 | | 49 | Assets not covered for GAR calculation | 565,848 | | | | | | | | | | | | | | | | | | 50 | Central governments and Supranational issuers | 142,309 | | | | | | | | | | | | | | | | | | 51 | Central banks exposure | 193,354 | | | | | | | | | | | | | | | | | | 52 | Trading book | 230,185 | | | | | | | | | | | | | | | | | | 53 | Total assets | 1,872,390 | 444,137 | 39,615 | 36,969 | 8,952 | 1,412 | | 365 | 41 | 0 | 18 | | 444,503 | 39,656 | 36,969 | 8,952 | 1,431 | | Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations | | | | | | | | | | | | | | | | | | | | 54 | Financial guarantees | 16,898 | 809 | 218 | 0 | 1 | 166 | | 67 | 31 | 0 | 31 | | 876 | 249 | 0 | 1 | 197 | | 55 | Assets under management 111 | 156,908 | 12,858 | 1,994 | 0 | 78 | 844 | | 861 | 53 | 0 | 19 | | 13,719 | 2,047 | 0 | 78 | 863 | Annual report 2025149 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | Million EUR | | 2024 | | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | Total [gross] carrying amount | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy- aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 56 | Of which debt securities | 71,062 | 8,627 | 912 | 0 | 37 | 367 | | 520 | 20 | 0 | 11 | | 9,147 | 931 | 0 | 37 | 378 | | 57 | Of which equity instruments | 63,320 | 4,061 | 1,040 | 0 | 40 | 462 | | 328 | 32 | 0 | 8 | | 4,389 | 1,072 | 0 | 40 | 470 | 112 For presentation purposes, the breakdowns relating to the degree of portfolio alignment with the objectives of Biodiversity, Circular Economy, Pollution Prevention and Control, and Water and Marine Resources are not included in these templates, as they are not material in the context of the Taxonomy disclosures, given that their impact on the GAR ratio is residual (eligibility below 0.03% and alignment below 0.007% in all cases). Annual report 2025150 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 2. GAR sector information (Capex) - 2025 112 | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | Breakdown by sector - NACE 4 digits level (code and label) | | 2025 | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | | TOTAL (CCM + CCA) | | | | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | Mn EUR | Of which environmentally sustainable (CCM) | | Mn EUR | Of which environmentally sustainable (CCM) | | Mn EUR | Of which environmentally sustainable (CCA) | | Mn EUR | Of which environmentally sustainable (CCA) | | Mn EUR | Of which environmentally sustainable (CCM+CCA) | | Mn EUR | Of which environmentally sustainable (CCM+CCA) | | 1 | A Agriculture, forestry and fishing | 23 | 0 | | | | | 0 | 0 | | | | | 23 | 0 | | | | | 2 | B910 - Support activities for petroleum and natural gas extraction | 73 | 57 | | | | | 1 | 1 | | | | | 74 | 58 | | | | | 3 | B Mining and quarrying | 314 | 235 | | | | | 2 | 2 | | | | | 316 | 237 | | | | | 4 | C2059 - Manufacture of other chemical products n.e.c. | 60 | 38 | | | | | 0 | 0 | | | | | 60 | 39 | | | | | 5 | C2410 - Manufacture of basic iron and steel and of ferro- alloys | 98 | 0 | | | | | 0 | 0 | | | | | 98 | 0 | | | | | 6 | C2511 - Manufacture of metal structures and parts of structures | 48 | 46 | | | | | 15 | 15 | | | | | 62 | 60 | | | | | 7 | C2733 - Manufacture of wiring devices | 66 | 21 | | | | | 0 | 0 | | | | | 66 | 21 | | | | | 8 | C2910 - Manufacture of motor vehicles | 75 | 5 | | | | | 0 | 0 | | | | | 75 | 5 | | | | | 9 | C3020 - Manufacture of railway locomotives and rolling stock | 68 | 60 | | | | | 0 | 0 | | | | | 68 | 60 | | | | | 10 | C3030 - Manufacture of air and spacecraft and related machinery | 559 | 181 | | | | | 0 | 0 | | | | | 559 | 181 | | | | | 11 | C Manufacturing | 138 | 23 | | | | | 0 | 0 | | | | | 138 | 23 | | | | | 12 | D3511 - Production of electricity | 444 | 113 | | | | | 0 | 0 | | | | | 445 | 114 | | | | | 13 | D3512 - Transmission of electricity | 1,048 | 918 | | | | | 2 | 2 | | | | | 1,050 | 919 | | | | | 14 | D3513 - Distribution of electricity | 86 | 83 | | | | | 0 | 0 | | | | | 86 | 83 | | | | | 15 | D3514 - Trade of electricity | 578 | 479 | | | | | 2 | 2 | | | | | 580 | 481 | | | | | 16 | D Electricity, gas, steam and air conditioning supply | 801 | 670 | | | | | 0 | 0 | | | | | 801 | 670 | | | | | 17 | E Water supply | 56 | 46 | | | | | 0 | 0 | | | | | 56 | 46 | | | | | 18 | F4110 - Development of building projects | 17 | 16 | | | | | 0 | 0 | | | | | 17 | 16 | | | | Annual report 2025151 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | Breakdown by sector - NACE 4 digits level (code and label) | | 2025 | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | | TOTAL (CCM + CCA) | | | | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | Mn EUR | Of which environmentally sustainable (CCM) | | Mn EUR | Of which environmentally sustainable (CCM) | | Mn EUR | Of which environmentally sustainable (CCA) | | Mn EUR | Of which environmentally sustainable (CCA) | | Mn EUR | Of which environmentally sustainable (CCM+CCA) | | Mn EUR | Of which environmentally sustainable (CCM+CCA) | | 19 | F4211 - Construction of roads and motorways | 6 | 2 | | | | | 0 | 0 | | | | | 6 | 2 | | | | | 20 | F4299 - Construction of other civil engineering projects n.e.c. | 69 | 1 | | | | | 0 | 0 | | | | | 69 | 1 | | | | | 21 | F4312 - Site preparation | 150 | 34 | | | | | 0 | 0 | | | | | 150 | 34 | | | | | 22 | F4321 - Electrical installation | 102 | 29 | | | | | 6 | 3 | | | | | 108 | 32 | | | | | 23 | F Construction | 229 | 80 | | | | | 0 | 0 | | | | | 229 | 80 | | | | | 24 | G4511 - Sale of cars and light motor vehicles | 50 | 2 | | | | | 0 | 0 | | | | | 50 | 2 | | | | | 25 | G4614 - Agents involved in the sale of machinery, industrial equipment, ships and aircraft | 62 | 47 | | | | | 0 | 0 | | | | | 63 | 47 | | | | | 26 | G Wholesale and retail trade | 125 | 9 | | | | | 0 | 0 | | | | | 125 | 9 | | | | | 27 | H4910 - Passenger rail transport, interurban | 66 | 1 | | | | | 0 | 0 | | | | | 66 | 1 | | | | | 28 | H5221 - Service activities incidental to land transportation | 239 | 27 | | | | | 0 | 0 | | | | | 239 | 27 | | | | | 29 | H Transport and storage | 57 | 1 | | | | | 0 | 0 | | | | | 57 | 1 | | | | | 30 | I5510 - Hotels and similar accommodation | 210 | 52 | | | | | 0 | 0 | | | | | 210 | 52 | | | | | 31 | I Accommodation and food service activities | 92 | 40 | | | | | 0 | 0 | | | | | 92 | 40 | | | | | 32 | J6120 - Wireless telecommunications activities | 189 | 0 | | | | | 0 | 0 | | | | | 189 | 0 | | | | | 33 | J6399 - Other information service activities n.e.c. | 77 | 0 | | | | | 0 | 0 | | | | | 77 | 0 | | | | | 34 | J Information and communication | 62 | 20 | | | | | 25 | 1 | | | | | 88 | 21 | | | | | 35 | L6810 - Buying and selling of own real estate | 433 | 0 | | | | | 0 | 0 | | | | | 433 | 0 | | | | | 36 | L6820 - Renting and operating of own or leased real estate | 65 | 7 | | | | | 3 | 1 | | | | | 69 | 8 | | | | | 37 | L6832 - Management of real estate on a fee or contract basis | 83 | 0 | | | | | 0 | 0 | | | | | 83 | 0 | | | | | 38 | L Real estate activities | 55 | 3 | | | | | 0 | 0 | | | | | 55 | 3 | | | | | 39 | M7010 - Activities of head offices | 58 | 50 | | | | | 0 | 0 | | | | | 58 | 50 | | | | | 40 | M7021 - Public relations and communication activities | 459 | 303 | | | | | 1 | 0 | | | | | 460 | 303 | | | | Annual report 2025152 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | Breakdown by sector - NACE 4 digits level (code and label) | | 2025 | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | | TOTAL (CCM + CCA) | | | | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | Mn EUR | Of which environmentally sustainable (CCM) | | Mn EUR | Of which environmentally sustainable (CCM) | | Mn EUR | Of which environmentally sustainable (CCA) | | Mn EUR | Of which environmentally sustainable (CCA) | | Mn EUR | Of which environmentally sustainable (CCM+CCA) | | Mn EUR | Of which environmentally sustainable (CCM+CCA) | | 41 | M7022 - Business and other management consultancy activities | 61 | 17 | | | | | 0 | 0 | | | | | 61 | 17 | | | | | 42 | M7112 - Engineering activities and related technical consultancy | 55 | 4 | | | | | 0 | 0 | | | | | 55 | 4 | | | | | 43 | M7490 - Other professional, scientific and technical activities n.e.c. | 77 | 24 | | | | | 0 | 0 | | | | | 77 | 24 | | | | | 44 | M Professional, scientific and technical activities | 225 | 59 | | | | | 1 | 0 | | | | | 226 | 59 | | | | | 45 | N7711 - Renting and leasing of cars and light motor vehicles | 3 | 1 | | | | | 0 | 0 | | | | | 3 | 1 | | | | | 46 | N8010 - Private security activities | 43 | 3 | | | | | 0 | 0 | | | | | 43 | 3 | | | | | 47 | N8211 - Combined office administrative service activities | 62 | 1 | | | | | 0 | 0 | | | | | 62 | 1 | | | | | 48 | N8299 - Other business support service activities n.e.c. | 125 | 52 | | | | | 0 | 0 | | | | | 125 | 52 | | | | | 49 | N Administrative and support service activities | 32 | 1 | | | | | 0 | 0 | | | | | 32 | 1 | | | | | 50 | O Public administration and defence, compulsory social security | 0 | 0 | | | | | 0 | 0 | | | | | 0 | 0 | | | | | 51 | P Education | 16 | 0 | | | | | 0 | 0 | | | | | 16 | 0 | | | | | 52 | Q Human health services and social work activities | 9 | 1 | | | | | 0 | 0 | | | | | 9 | 1 | | | | | 53 | R Arts, entertainment and recreation | 4 | 0 | | | | | 0 | 0 | | | | | 4 | 0 | | | | | 54 | S Other services | 299 | 107 | | | | | 1 | 1 | | | | | 301 | 108 | | | | | | | --- | | | | 1. Exposures in the banking book towards those sectors covered by the Taxonomy (NACE sectors 4 levels of detail), using the relevant NACE Codes on the basis of the principal activity of the counterparty. A threshold above 0.5% of the eligible exposure has been set for reporting NACE at level 4. All other NACEs outside this threshold are reported at level 1. | 113 For presentation purposes, the breakdowns relating to the degree of portfolio alignment with the objectives of Biodiversity, Circular Economy, Pollution Prevention and Control, and Water and Marine Resources are not included in these templates, as they are not material in the context of the Taxonomy disclosures, given that their impact on the GAR ratio is residual (eligibility below 0.03% and alignment below 0.007% in all cases). Annual report 2025153 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 2. GAR sector information (Turnover) - 2025 113 | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | Breakdown by sector - NACE 4 digits level (code and label) | | 2025 | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | | TOTAL (CCM + CCA) | | | | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | Mn EUR | Of which environmentally sustainable (CCM) | | Mn EUR | Of which environmentally sustainable (CCM) | | Mn EUR | Of which environmentally sustainable (CCA) | | Mn EUR | Of which environmentally sustainable (CCA) | | Mn EUR | Of which environmentally sustainable (CCM+CCA) | | Mn EUR | Of which environmentally sustainable (CCM+CCA) | | 1 | A Agriculture, forestry and fishing | 23 | 0 | | | | | 0 | 0 | | | | | 23 | 0 | | | | | 2 | B910 - Support activities for petroleum and natural gas extraction | 118 | 28 | | | | | 0 | 0 | | | | | 118 | 28 | | | | | 3 | B Mining and quarrying | 42 | 16 | | | | | 0 | 0 | | | | | 42 | 16 | | | | | 4 | C2059 - Manufacture of other chemical products n.e.c. | 40 | 4 | | | | | 0 | 0 | | | | | 40 | 4 | | | | | 5 | C2410 - Manufacture of basic iron and steel and of ferro- alloys | 45 | 10 | | | | | 0 | 0 | | | | | 45 | 10 | | | | | 6 | C2511 - Manufacture of metal structures and parts of structures | 93 | 0 | | | | | 0 | 0 | | | | | 93 | 0 | | | | | 7 | C2733 - Manufacture of wiring devices | 44 | 28 | | | | | 0 | 0 | | | | | 44 | 28 | | | | | 8 | C2910 - Manufacture of motor vehicles | 581 | 52 | | | | | 0 | 0 | | | | | 581 | 52 | | | | | 9 | C3020 - Manufacture of railway locomotives and rolling stock | 100 | 0 | | | | | 0 | 0 | | | | | 100 | 0 | | | | | 10 | C3030 - Manufacture of air and spacecraft and related machinery | 42 | 0 | | | | | 0 | 0 | | | | | 42 | 0 | | | | | 11 | C Manufacturing | 260 | 47 | | | | | 0 | 0 | | | | | 260 | 47 | | | | | 12 | D3511 - Production of electricity | 708 | 466 | | | | | 4 | 2 | | | | | 711 | 468 | | | | | 13 | D3512 - Transmission of electricity | 53 | 47 | | | | | 0 | 0 | | | | | 53 | 47 | | | | | 14 | D3513 - Distribution of electricity | 414 | 312 | | | | | 1 | 1 | | | | | 415 | 313 | | | | | 15 | D3514 - Trade of electricity | 499 | 348 | | | | | 0 | 0 | | | | | 499 | 348 | | | | | 16 | D Electricity, gas, steam and air conditioning supply | 26 | 12 | | | | | 0 | 0 | | | | | 26 | 12 | | | | | 17 | E Water supply | 22 | 4 | | | | | 1 | 0 | | | | | 23 | 4 | | | | | 18 | F4110 - Development of building projects | 70 | 1 | | | | | 0 | 0 | | | | | 70 | 1 | | | | Annual report 2025154 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | Breakdown by sector - NACE 4 digits level (code and label) | | 2025 | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | | TOTAL (CCM + CCA) | | | | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | Mn EUR | Of which environmentally sustainable (CCM) | | Mn EUR | Of which environmentally sustainable (CCM) | | Mn EUR | Of which environmentally sustainable (CCA) | | Mn EUR | Of which environmentally sustainable (CCA) | | Mn EUR | Of which environmentally sustainable (CCM+CCA) | | Mn EUR | Of which environmentally sustainable (CCM+CCA) | | 19 | F4211 - Construction of roads and motorways | 90 | 16 | | | | | 3 | 0 | | | | | 92 | 16 | | | | | 20 | F4299 - Construction of other civil engineering projects n.e.c. | 93 | 16 | | | | | 2 | 0 | | | | | 95 | 16 | | | | | 21 | F4312 - Site preparation | 114 | 0 | | | | | 0 | 0 | | | | | 114 | 0 | | | | | 22 | F4321 - Electrical installation | 59 | 5 | | | | | 0 | 0 | | | | | 59 | 5 | | | | | 23 | F Construction | 40 | 17 | | | | | 2 | 0 | | | | | 42 | 17 | | | | | 24 | G4511 - Sale of cars and light motor vehicles | 318 | 38 | | | | | 0 | 0 | | | | | 318 | 38 | | | | | 25 | G4614 - Agents involved in the sale of machinery, industrial equipment, ships and aircraft | 47 | 0 | | | | | 0 | 0 | | | | | 47 | 0 | | | | | 26 | G Wholesale and retail trade | 83 | 14 | | | | | 0 | 0 | | | | | 84 | 14 | | | | | 27 | H4910 - Passenger rail transport, interurban | 47 | 0 | | | | | 0 | 0 | | | | | 47 | 0 | | | | | 28 | H5221 - Service activities incidental to land transportation | 206 | 56 | | | | | 0 | 0 | | | | | 206 | 56 | | | | | 29 | H Transport and storage | 69 | 14 | | | | | 0 | 0 | | | | | 69 | 14 | | | | | 30 | I5510 - Hotels and similar accommodation | 189 | 0 | | | | | 0 | 0 | | | | | 189 | 0 | | | | | 31 | I Accommodation and food service activities | 76 | 0 | | | | | 0 | 0 | | | | | 76 | 0 | | | | | 32 | J6120 - Wireless telecommunications activities | 140 | 53 | | | | | 13 | 1 | | | | | 153 | 54 | | | | | 33 | J6399 - Other information service activities n.e.c. | 433 | 0 | | | | | 0 | 0 | | | | | 433 | 0 | | | | | 34 | J Information and communication | 50 | 4 | | | | | 13 | 4 | | | | | 64 | 8 | | | | | 35 | L6810 - Buying and selling of own real estate | 125 | 75 | | | | | 0 | 0 | | | | | 125 | 75 | | | | | 36 | L6820 - Renting and operating of own or leased real estate | 87 | 0 | | | | | 1 | 0 | | | | | 88 | 1 | | | | | 37 | L6832 - Management of real estate on a fee or contract basis | 44 | 3 | | | | | 0 | 0 | | | | | 44 | 3 | | | | | 38 | L Real estate activities | 2 | 0 | | | | | 0 | 0 | | | | | 2 | 0 | | | | | 39 | M7010 - Activities of head offices | 285 | 172 | | | | | 2 | 0 | | | | | 288 | 172 | | | | | 40 | M7021 - Public relations and communication activities | 57 | 5 | | | | | 0 | 0 | | | | | 57 | 5 | | | | Annual report 2025155 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | Breakdown by sector - NACE 4 digits level (code and label) | | 2025 | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | | TOTAL (CCM + CCA) | | | | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | Mn EUR | Of which environmentally sustainable (CCM) | | Mn EUR | Of which environmentally sustainable (CCM) | | Mn EUR | Of which environmentally sustainable (CCA) | | Mn EUR | Of which environmentally sustainable (CCA) | | Mn EUR | Of which environmentally sustainable (CCM+CCA) | | Mn EUR | Of which environmentally sustainable (CCM+CCA) | | 41 | M7022 - Business and other management consultancy activities | 58 | 6 | | | | | 0 | 0 | | | | | 58 | 6 | | | | | 42 | M7112 - Engineering activities and related technical consultancy | 70 | 10 | | | | | 0 | 0 | | | | | 70 | 10 | | | | | 43 | M7490 - Other professional, scientific and technical activities n.e.c. | 203 | 45 | | | | | 3 | 0 | | | | | 205 | 45 | | | | | 44 | M Professional, scientific and technical activities | 34 | 23 | | | | | 0 | 0 | | | | | 34 | 23 | | | | | 45 | N7711 - Renting and leasing of cars and light motor vehicles | 135 | 16 | | | | | 0 | 0 | | | | | 135 | 16 | | | | | 46 | N8010 - Private security activities | 36 | 0 | | | | | 0 | 0 | | | | | 36 | 0 | | | | | 47 | N8211 - Combined office administrative service activities | 61 | 0 | | | | | 0 | 0 | | | | | 61 | 0 | | | | | 48 | N8299 - Other business support service activities n.e.c. | 71 | 32 | | | | | 0 | 0 | | | | | 71 | 32 | | | | | 49 | N Administrative and support service activities | 18 | 1 | | | | | 0 | 0 | | | | | 18 | 1 | | | | | 50 | O Public administration and defence, compulsory social security | 0 | 0 | | | | | 0 | 0 | | | | | 0 | 0 | | | | | 51 | P Education | 16 | 0 | | | | | 0 | 0 | | | | | 16 | 0 | | | | | 52 | Q Human health services and social work activities | 9 | 3 | | | | | 0 | 0 | | | | | 10 | 3 | | | | | 53 | R Arts, entertainment and recreation | 0 | 0 | | | | | 0 | 0 | | | | | 0 | 0 | | | | | 54 | S Other services | 228 | 48 | | | | | 1 | 0 | | | | | 229 | 49 | | | | | | | --- | | | | 1. Exposures in the banking book towards those sectors covered by the Taxonomy (NACE sectors 4 levels of detail), using the relevant NACE Codes on the basis of the principal activity of the counterparty. A threshold above 0.5% of the eligible exposure has been set for reporting NACE at level 4. All other NACEs outside this threshold are reported at level 1. | Annual report 2025156 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 2. GAR sector information (Capex) - 2024 | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | Breakdown by sector - NACE 4 digits level (code and label) | | 2024 | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | | TOTAL (CCM + CCA) | | | | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | Mn EUR | Of which environmentally sustainable (CCM) | | Mn EUR | Of which environmentally sustainable (CCM) | | Mn EUR | Of which environmentally sustainable (CCA) | | Mn EUR | Of which environmentally sustainable (CCA) | | Mn EUR | Of which environmentally sustainable (CCM+CCA) | | Mn EUR | Of which environmentally sustainable (CCM+CCA) | | 1 | A Agriculture, forestry and fishing | 25 | 0 | | | | | 0 | 0 | | | | | 25 | 0 | | | | | 2 | B610 - Extraction of crude petroleum | 67 | 53 | | | | | 0 | 0 | | | | | 67 | 53 | | | | | 3 | B910 - Support activities for petroleum and natural gas extraction | 354 | 261 | | | | | 1 | 0 | | | | | 354 | 261 | | | | | 4 | B Mining and quarrying | 50 | 4 | | | | | 0 | 0 | | | | | 51 | 4 | | | | | 5 | C2410 - Manufacture of basic iron and steel and of ferro- alloys | 61 | 55 | | | | | 0 | 0 | | | | | 61 | 55 | | | | | 6 | C2511 - Manufacture of metal structures and parts of structures | 121 | 120 | | | | | 0 | 0 | | | | | 121 | 120 | | | | | 7 | C2732 - Manufacture of other electronic and electric wires and cables | 129 | 98 | | | | | 0 | 0 | | | | | 129 | 98 | | | | | 8 | C2733 - Manufacture of wiring devices | 66 | 55 | | | | | 0 | 0 | | | | | 66 | 55 | | | | | 9 | C2910 - Manufacture of motor vehicles | 443 | 147 | | | | | 0 | 0 | | | | | 443 | 147 | | | | | 10 | C3020 - Manufacture of railway locomotives and rolling stock | 134 | 34 | | | | | 0 | 0 | | | | | 134 | 34 | | | | | 11 | C3030 - Manufacture of air and spacecraft and related machinery | 60 | 0 | | | | | 0 | 0 | | | | | 60 | 0 | | | | | 12 | C Manufacturing | 622 | 278 | | | | | 3 | 3 | | | | | 625 | 281 | | | | | 13 | D3511 - Production of electricity | 971 | 726 | | | | | 0 | 0 | | | | | 972 | 726 | | | | | 14 | D3513 - Distribution of electricity | 400 | 362 | | | | | 0 | 0 | | | | | 400 | 362 | | | | | 15 | D3514 - Trade of electricity | 471 | 328 | | | | | 0 | 0 | | | | | 471 | 328 | | | | | 16 | D3521 - Manufacture of gas | 136 | 46 | | | | | 0 | 0 | | | | | 136 | 46 | | | | | 17 | D Electricity, gas, steam and air conditioning supply | 92 | 38 | | | | | 0 | 0 | | | | | 92 | 38 | | | | | 18 | E Water supply | 78 | 3 | | | | | 0 | 0 | | | | | 78 | 3 | | | | | 19 | F4110 - Development of building projects | 80 | 1 | | | | | 0 | 0 | | | | | 80 | 1 | | | | | 20 | F4211 - Construction of roads and motorways | 149 | 35 | | | | | 3 | 0 | | | | | 152 | 35 | | | | Annual report 2025157 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | Breakdown by sector - NACE 4 digits level (code and label) | | 2024 | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | | TOTAL (CCM + CCA) | | | | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | Mn EUR | Of which environmentally sustainable (CCM) | | Mn EUR | Of which environmentally sustainable (CCM) | | Mn EUR | Of which environmentally sustainable (CCA) | | Mn EUR | Of which environmentally sustainable (CCA) | | Mn EUR | Of which environmentally sustainable (CCM+CCA) | | Mn EUR | Of which environmentally sustainable (CCM+CCA) | | 21 | F4299 - Construction of other civil engineering projects n.e.c. | 88 | 10 | | | | | 2 | 0 | | | | | 90 | 10 | | | | | 22 | F4312 - Site preparation | 390 | 2 | | | | | 0 | 0 | | | | | 390 | 2 | | | | | 23 | F Construction | 162 | 38 | | | | | 1 | 0 | | | | | 164 | 38 | | | | | 24 | G4511 - Sale of cars and light motor vehicles | 551 | 81 | | | | | 0 | 0 | | | | | 552 | 81 | | | | | 25 | G4519 - Sale of other motor vehicles | 101 | 23 | | | | | 0 | 0 | | | | | 101 | 23 | | | | | 26 | G4641 - Wholesale of textiles | 58 | 0 | | | | | 0 | 0 | | | | | 58 | 0 | | | | | 27 | G4711 - Retail sale in non- specialised stores with food, beverages or tobacco predominating | 132 | 11 | | | | | 0 | 0 | | | | | 132 | 11 | | | | | 28 | G4778 - Other retail sale of new goods in specialised stores | 103 | 1 | | | | | 0 | 0 | | | | | 103 | 1 | | | | | 29 | G Wholesale and retail trade | 403 | 69 | | | | | 8 | 0 | | | | | 412 | 69 | | | | | 30 | H4950 - Transport via pipeline | 148 | 134 | | | | | 0 | 0 | | | | | 148 | 134 | | | | | 31 | H5210 - Warehousing and storage | 83 | 0 | | | | | 0 | 0 | | | | | 83 | 0 | | | | | 32 | H5221 - Service activities incidental to land transportation | 267 | 7 | | | | | 0 | 0 | | | | | 267 | 7 | | | | | 33 | H Transport and storage | 158 | 30 | | | | | 0 | 0 | | | | | 159 | 30 | | | | | 34 | I5510 - Hotels and similar accommodation | 182 | 0 | | | | | 0 | 0 | | | | | 182 | 0 | | | | | 35 | I Accommodation and food service activities | 50 | 0 | | | | | 0 | 0 | | | | | 50 | 0 | | | | | 36 | J6120 - Wireless telecommunications activities | 348 | 30 | | | | | 31 | 1 | | | | | 379 | 31 | | | | | 37 | J6399 - Other information service activities n.e.c. | 472 | 0 | | | | | 0 | 0 | | | | | 472 | 0 | | | | | 38 | J Information and communication | 160 | 12 | | | | | 2 | 2 | | | | | 163 | 14 | | | | | 39 | L6810 - Buying and selling of own real estate | 140 | 73 | | | | | 7 | 0 | | | | | 148 | 73 | | | | | 40 | L6820 - Renting and operating of own or leased real estate | 175 | 0 | | | | | 0 | 0 | | | | | 175 | 1 | | | | | 41 | L Real estate activities | 22 | 0 | | | | | 0 | 0 | | | | | 22 | 0 | | | | | 42 | M7010 - Activities of head offices | 929 | 554 | | | | | 8 | 8 | | | | | 937 | 562 | | | | Annual report 2025158 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | Breakdown by sector - NACE 4 digits level (code and label) | | 2024 | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | | TOTAL (CCM + CCA) | | | | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | Mn EUR | Of which environmentally sustainable (CCM) | | Mn EUR | Of which environmentally sustainable (CCM) | | Mn EUR | Of which environmentally sustainable (CCA) | | Mn EUR | Of which environmentally sustainable (CCA) | | Mn EUR | Of which environmentally sustainable (CCM+CCA) | | Mn EUR | Of which environmentally sustainable (CCM+CCA) | | 43 | M7490 - Other professional, scientific and technical activities n.e.c. | 196 | 88 | | | | | 3 | 0 | | | | | 199 | 88 | | | | | 44 | M Professional, scientific and technical activities | 156 | 69 | | | | | 1 | 0 | | | | | 157 | 69 | | | | | 45 | N7711 - Renting and leasing of cars and light motor vehicles | 723 | 119 | | | | | 0 | 0 | | | | | 723 | 119 | | | | | 46 | N8211 - Combined office administrative service activities | 84 | 30 | | | | | 0 | 0 | | | | | 84 | 30 | | | | | 47 | N8299 - Other business support service activities n.e.c. | 230 | 90 | | | | | 0 | 0 | | | | | 230 | 90 | | | | | 48 | N Administrative and support service activities | 105 | 0 | | | | | 0 | 0 | | | | | 105 | 0 | | | | | 49 | O Public administration and defence, compulsory social security | 0 | 0 | | | | | 0 | 0 | | | | | 0 | 0 | | | | | 50 | P Education | 18 | 0 | | | | | 0 | 0 | | | | | 18 | 0 | | | | | 51 | Q Human health services and social work activities | 14 | 2 | | | | | 0 | 0 | | | | | 14 | 2 | | | | | 52 | R Arts, entertainment and recreation | 20 | 0 | | | | | 0 | 0 | | | | | 20 | 0 | | | | | 53 | S9609 - Other personal service activities n.e.c. | 83 | 19 | | | | | 0 | 0 | | | | | 83 | 19 | | | | | 54 | S Other services | 275 | 111 | | | | | 1 | 0 | | | | | 276 | 111 | | | | | | | --- | | | | 1. Exposures in the banking book towards those sectors covered by the Taxonomy (NACE sectors 4 levels of detail), using the relevant NACE Codes on the basis of the principal activity of the counterparty. A threshold above 0.5% of the eligible exposure has been set for reporting NACE at level 4. All other NACEs outside this threshold are reported at level 1. | Annual report 2025159 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 2. GAR sector information (Turnover) - 2024 | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | Breakdown by sector - NACE 4 digits level (code and label) | | 2024 | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | | TOTAL (CCM + CCA) | | | | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | Mn EUR | Of which environmentally sustainable (CCM) | | Mn EUR | Of which environmentally sustainable (CCM) | | Mn EUR | Of which environmentally sustainable (CCA) | | Mn EUR | Of which environmentally sustainable (CCA) | | Mn EUR | Of which environmentally sustainable (CCM+CCA) | | Mn EUR | Of which environmentally sustainable (CCM+CCA) | | 1 | A Agriculture, forestry and fishing | 25 | 0 | | | | | 0 | 0 | | | | | 25 | 0 | | | | | 2 | B910 - Support activities for petroleum and natural gas extraction | 186 | 76 | | | | | 1 | 0 | | | | | 187 | 76 | | | | | 3 | B Mining and quarrying | 46 | 6 | | | | | 0 | 0 | | | | | 46 | 6 | | | | | 4 | C2351 - Manufacture of cement | 67 | 1 | | | | | 0 | 0 | | | | | 67 | 1 | | | | | 5 | C2410 - Manufacture of basic iron and steel and of ferro- alloys | 88 | 3 | | | | | 0 | 0 | | | | | 88 | 3 | | | | | 6 | C2442 - Aluminium production | 138 | 35 | | | | | 0 | 0 | | | | | 138 | 35 | | | | | 7 | C2511 - Manufacture of metal structures and parts of structures | 150 | 0 | | | | | 0 | 0 | | | | | 150 | 0 | | | | | 8 | C2732 - Manufacture of other electronic and electric wires and cables | 100 | 44 | | | | | 0 | 0 | | | | | 100 | 44 | | | | | 9 | C2910 - Manufacture of motor vehicles | 432 | 36 | | | | | 0 | 0 | | | | | 432 | 36 | | | | | 10 | C3011 - Building of ships and floating structures | 68 | 16 | | | | | 0 | 0 | | | | | 68 | 16 | | | | | 11 | C3020 - Manufacture of railway locomotives and rolling stock | 134 | 37 | | | | | 0 | 0 | | | | | 134 | 37 | | | | | 12 | C3030 - Manufacture of air and spacecraft and related machinery | 73 | 0 | | | | | 0 | 0 | | | | | 73 | 0 | | | | | 13 | C3313 - Repair of electronic and optical equipment | 49 | 0 | | | | | 0 | 0 | | | | | 49 | 0 | | | | | 14 | C Manufacturing | 318 | 60 | | | | | 0 | 0 | | | | | 318 | 60 | | | | | 15 | D3511 - Production of electricity | 613 | 348 | | | | | 2 | 0 | | | | | 615 | 348 | | | | | 16 | D3513 - Distribution of electricity | 236 | 165 | | | | | 0 | 0 | | | | | 236 | 165 | | | | | 17 | D3514 - Trade of electricity | 235 | 163 | | | | | 0 | 0 | | | | | 235 | 163 | | | | | 18 | D3521 - Manufacture of gas | 99 | 5 | | | | | 0 | 0 | | | | | 99 | 5 | | | | | 19 | D Electricity, gas, steam and air conditioning supply | 52 | 19 | | | | | 0 | 0 | | | | | 52 | 19 | | | | | 20 | E3600 - Water collection, treatment and supply | 51 | 0 | | | | | 0 | 0 | | | | | 51 | 0 | | | | Annual report 2025160 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | Breakdown by sector - NACE 4 digits level (code and label) | | 2024 | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | | TOTAL (CCM + CCA) | | | | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | Mn EUR | Of which environmentally sustainable (CCM) | | Mn EUR | Of which environmentally sustainable (CCM) | | Mn EUR | Of which environmentally sustainable (CCA) | | Mn EUR | Of which environmentally sustainable (CCA) | | Mn EUR | Of which environmentally sustainable (CCM+CCA) | | Mn EUR | Of which environmentally sustainable (CCM+CCA) | | 21 | E Water supply | 28 | 4 | | | | | 1 | 0 | | | | | 29 | 4 | | | | | 22 | F4110 - Development of building projects | 81 | 2 | | | | | 0 | 0 | | | | | 81 | 2 | | | | | 23 | F4120 - Construction of residential and non-residential buildings | 51 | 11 | | | | | 0 | 0 | | | | | 51 | 11 | | | | | 24 | F4211 - Construction of roads and motorways | 175 | 71 | | | | | 8 | 0 | | | | | 183 | 71 | | | | | 25 | F4299 - Construction of other civil engineering projects n.e.c. | 93 | 19 | | | | | 4 | 0 | | | | | 97 | 19 | | | | | 26 | F4312 - Site preparation | 374 | 0 | | | | | 1 | 0 | | | | | 374 | 0 | | | | | 27 | F Construction | 111 | 33 | | | | | 6 | 0 | | | | | 117 | 33 | | | | | 28 | G4511 - Sale of cars and light motor vehicles | 272 | 24 | | | | | 0 | 0 | | | | | 272 | 24 | | | | | 29 | G4519 - Sale of other motor vehicles | 99 | 11 | | | | | 0 | 0 | | | | | 99 | 11 | | | | | 30 | G4614 - Agents involved in the sale of machinery, industrial equipment, ships and aircraft | 63 | 0 | | | | | 0 | 0 | | | | | 63 | 0 | | | | | 31 | G Wholesale and retail trade | 174 | 16 | | | | | 0 | 0 | | | | | 174 | 16 | | | | | 32 | H4950 - Transport via pipeline | 50 | 36 | | | | | 0 | 0 | | | | | 50 | 36 | | | | | 33 | H5210 - Warehousing and storage | 83 | 0 | | | | | 0 | 0 | | | | | 83 | 0 | | | | | 34 | H5221 - Service activities incidental to land transportation | 265 | 10 | | | | | 0 | 0 | | | | | 265 | 10 | | | | | 35 | H Transport and storage | 124 | 7 | | | | | 0 | 0 | | | | | 124 | 7 | | | | | 36 | I5510 - Hotels and similar accommodation | 167 | 0 | | | | | 0 | 0 | | | | | 167 | 0 | | | | | 37 | I Accommodation and food service activities | 41 | 0 | | | | | 0 | 0 | | | | | 41 | 0 | | | | | 38 | J6120 - Wireless telecommunications activities | 453 | 90 | | | | | 20 | 3 | | | | | 473 | 93 | | | | | 39 | J6399 - Other information service activities n.e.c. | 472 | 0 | | | | | 0 | 0 | | | | | 472 | 0 | | | | | 40 | J Information and communication | 138 | 3 | | | | | 12 | 3 | | | | | 150 | 7 | | | | | 41 | L6810 - Buying and selling of own real estate | 158 | 61 | | | | | 0 | 0 | | | | | 158 | 61 | | | | | 42 | L6820 - Renting and operating of own or leased real estate | 185 | 0 | | | | | 4 | 4 | | | | | 189 | 4 | | | | | 43 | L Real estate activities | 22 | 0 | | | | | 0 | 0 | | | | | 22 | 0 | | | | Annual report 2025161 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | Breakdown by sector - NACE 4 digits level (code and label) | | 2024 | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | | TOTAL (CCM + CCA) | | | | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | Non-Financial corporates (Subject to NFRD) | | | SMEs and other NFC not subject to NFRD | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | [Gross] carrying amount | | | Mn EUR | Of which environmentally sustainable (CCM) | | Mn EUR | Of which environmentally sustainable (CCM) | | Mn EUR | Of which environmentally sustainable (CCA) | | Mn EUR | Of which environmentally sustainable (CCA) | | Mn EUR | Of which environmentally sustainable (CCM+CCA) | | Mn EUR | Of which environmentally sustainable (CCM+CCA) | | 44 | M7010 - Activities of head offices | 767 | 179 | | | | | 4 | 3 | | | | | 772 | 183 | | | | | 45 | M7112 - Engineering activities and related technical consultancy | 67 | 29 | | | | | 1 | 0 | | | | | 68 | 29 | | | | | 46 | M7490 - Other professional, scientific and technical activities n.e.c. | 145 | 62 | | | | | 4 | 0 | | | | | 149 | 62 | | | | | 47 | M Professional, scientific and technical activities | 59 | 27 | | | | | 6 | 4 | | | | | 65 | 31 | | | | | 48 | N7711 - Renting and leasing of cars and light motor vehicles | 716 | 41 | | | | | 0 | 0 | | | | | 716 | 41 | | | | | 49 | N7712 - Renting and leasing of trucks | 49 | 0 | | | | | 0 | 0 | | | | | 49 | 0 | | | | | 50 | N8211 - Combined office administrative service activities | 58 | 4 | | | | | 0 | 0 | | | | | 58 | 4 | | | | | 51 | N8299 - Other business support service activities n.e.c. | 196 | 65 | | | | | 0 | 0 | | | | | 196 | 65 | | | | | 52 | N Administrative and support service activities | 79 | 0 | | | | | 0 | 0 | | | | | 79 | 0 | | | | | 53 | O Public administration and defence, compulsory social security | 0 | 0 | | | | | 0 | 0 | | | | | 0 | 0 | | | | | 54 | P Education | 18 | 0 | | | | | 0 | 0 | | | | | 18 | 0 | | | | | 55 | Q Human health services and social work activities | 13 | 1 | | | | | 0 | 0 | | | | | 13 | 1 | | | | | 56 | R Arts, entertainment and recreation | 15 | 0 | | | | | 0 | 0 | | | | | 15 | 0 | | | | | 57 | S9609 - Other personal service activities n.e.c. | 70 | 3 | | | | | 0 | 0 | | | | | 70 | 3 | | | | | 58 | S Other services | 210 | 44 | | | | | 2 | 2 | | | | | 212 | 46 | | | | 114 For presentation purposes, the breakdowns relating to the degree of portfolio alignment with the objectives of Biodiversity, Circular Economy, Pollution Prevention and Control, and Water and Marine Resources are not included in these templates, as they are not material in the context of the Taxonomy disclosures, given that their impact on the GAR ratio is residual (eligibility below 0.03% and alignment below 0.007% in all cases). Annual report 2025162 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 3. GAR KPI stock (Capex) - 2025 114 | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | % (compared to total covered assets in the denominator) | | 2025 | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Proportion of total assets covered | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | GAR - Covered assets in both numerator and denominator | | | | | | | | | | | | | | | | | | | 1 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 66.5% | 7.1% | 6.3% | 1.9% | 0.3% | | 0.0% | 0.0% | 0.0% | 0.0% | | 66.5% | 7.1% | 6.3% | 1.9% | 0.3% | 33.4% | | 2 | Financial undertakings | 18.4% | 5.6% | 0.0% | 0.2% | 1.9% | | 0.0% | 0.0% | 0.0% | 0.0% | | 18.5% | 5.6% | 0.0% | 0.2% | 1.9% | 1.4% | | 3 | Credit institutions | 14.7% | 1.6% | 0.0% | 0.1% | 0.2% | | 0.0% | 0.0% | 0.0% | 0.0% | | 14.7% | 1.6% | 0.0% | 0.1% | 0.2% | 0.9% | | 4 | Loans and advances | 14.6% | 1.5% | 0.0% | 0.1% | 0.2% | | 0.0% | 0.0% | 0.0% | 0.0% | | 14.6% | 1.5% | 0.0% | 0.1% | 0.2% | 0.9% | | 5 | Debt securities, including UoP | 16.3% | 3.2% | 0.0% | 0.1% | 0.1% | | 0.1% | 0.0% | 0.0% | 0.0% | | 16.3% | 3.2% | 0.0% | 0.1% | 0.1% | 0.0% | | 6 | Equity instruments | 29.9% | 1.7% | | 0.1% | 0.2% | | 0.2% | 0.1% | | 0.0% | | 30.1% | 1.9% | | 0.1% | 0.2% | 0.0% | | 7 | Other financial corporations | 26.1% | 13.7% | 0.0% | 0.4% | 5.6% | | 0.1% | 0.0% | 0.0% | 0.0% | | 26.2% | 13.7% | 0.0% | 0.4% | 5.6% | 0.4% | | 8 | of which investment firms | 33.2% | 17.0% | 0.0% | 0.0% | 6.1% | | 0.1% | 0.0% | 0.0% | 0.0% | | 33.3% | 17.0% | 0.0% | 0.0% | 6.1% | 0.1% | | 9 | Loans and advances | 34.0% | 17.5% | 0.0% | 0.0% | 6.3% | | 0.1% | 0.0% | 0.0% | 0.0% | | 34.1% | 17.5% | 0.0% | 0.0% | 6.3% | 0.1% | | 10 | Debt securities, including UoP | 7.9% | 1.5% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 7.9% | 1.5% | 0.0% | 0.0% | 0.0% | 0.0% | | 11 | Equity instruments | 26.3% | 0.8% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 26.3% | 0.8% | | 0.0% | 0.0% | 0.0% | | 12 | of which  management companies | 3.1% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 3.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 13 | Loans and advances | 3.1% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 3.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 14 | Debt securities, including UoP | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 15 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 16 | of which insurance undertakings | 7.6% | 0.7% | 0.0% | 0.0% | 0.1% | | 0.0% | 0.0% | 0.0% | 0.0% | | 7.6% | 0.7% | 0.0% | 0.0% | 0.1% | 0.1% | | 17 | Loans and advances | 8.9% | 0.6% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 9.0% | 0.6% | 0.0% | 0.0% | 0.0% | 0.1% | | 18 | Debt securities, including UoP | 1.9% | 1.5% | 0.0% | 0.0% | 0.4% | | 0.0% | 0.0% | 0.0% | 0.0% | | 1.9% | 1.5% | 0.0% | 0.0% | 0.4% | 0.0% | | 19 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 20 | Non-financial undertakings | 31.0% | 14.4% | 0.0% | 0.3% | 6.2% | | 0.2% | 0.1% | 0.0% | 0.0% | | 31.2% | 14.6% | 0.0% | 0.3% | 6.3% | 1.4% | | 21 | Loans and advances | 30.7% | 13.7% | 0.0% | 0.3% | 6.4% | | 0.2% | 0.1% | 0.0% | 0.0% | | 30.9% | 13.8% | 0.0% | 0.3% | 6.5% | 1.3% | | 22 | Debt securities, including UoP | 34.5% | 24.5% | 0.0% | 0.1% | 3.2% | | 0.6% | 0.6% | 0.0% | 0.0% | | 35.2% | 25.0% | 0.0% | 0.1% | 3.8% | 0.1% | | 23 | Equity instruments | 14.3% | 4.6% | | 0.0% | 2.9% | | 6.9% | 6.9% | | 0.0% | | 21.2% | 11.5% | | 0.0% | 9.8% | 0.0% | | 24 | Households | 70.4% | 6.9% | 6.9% | 2.1% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 70.4% | 6.9% | 6.9% | 2.1% | 0.0% | 30.4% | | 25 | of which loans collateralised by residential immovable property | 92.0% | 8.2% | 8.2% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 92.0% | 8.2% | 8.2% | 0.0% | 0.0% | 17.9% | | 26 | of which building renovation loans | 100.0% | 0.2% | 0.2% | 0.2% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 100.0% | 0.2% | 0.2% | 0.2% | 0.0% | 0.1% | | 27 | of which motor vehicle loans | 100.0% | 12.9% | 12.9% | 12.9% | 0.0% | | | | | | | | | | | | | Annual report 2025163 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | % (compared to total covered assets in the denominator) | | 2025 | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Proportion of total assets covered | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 28 | Local governments financing | 46.3% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 46.3% | 0.0% | 0.0% | 0.0% | 0.0% | 0.2% | | 29 | Housing financing | 96.6% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 96.6% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 30 | Other local government financing | 44.5% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 44.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.2% | | 31 | Collateral obtained by taking possession: residential and commercial immovable properties | 1.1% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 1.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.2% | | 32 | Total GAR assets | 31.3% | 3.4% | 3.0% | 0.9% | 0.2% | | 0.0% | 0.0% | 0.0% | 0.0% | | 31.3% | 3.4% | 3.0% | 0.9% | 0.2% | 70.9% | 115 For presentation purposes, the breakdowns relating to the degree of portfolio alignment with the objectives of Biodiversity, Circular Economy, Pollution Prevention and Control, and Water and Marine Resources are not included in these templates, as they are not material in the context of the Taxonomy disclosures, given that their impact on the GAR ratio is residual (eligibility below 0.03% and alignment below 0.007% in all cases). Annual report 2025164 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 3. GAR KPI stock (Turnover) - 2025 115 | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | % (compared to total covered assets in the denominator) | | 2025 | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Proportion of total assets covered | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | GAR - Covered assets in both numerator and denominator | | | | | | | | | | | | | | | | | | | 1 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 66.1% | 6.7% | 6.3% | 1.9% | 0.2% | | 0.1% | 0.0% | 0.0% | 0.0% | | 66.2% | 6.7% | 6.3% | 1.9% | 0.2% | 33.4% | | 2 | Financial undertakings | 17.3% | 3.6% | 0.0% | 0.1% | 1.4% | | 1.3% | 0.1% | 0.0% | 0.1% | | 18.6% | 3.7% | 0.0% | 0.1% | 1.5% | 1.4% | | 3 | Credit institutions | 16.9% | 2.8% | 0.0% | 0.1% | 0.7% | | 0.3% | 0.2% | 0.0% | 0.2% | | 17.2% | 3.0% | 0.0% | 0.1% | 0.9% | 0.9% | | 4 | Loans and advances | 16.9% | 2.7% | 0.0% | 0.1% | 0.8% | | 0.3% | 0.2% | 0.0% | 0.2% | | 17.2% | 2.9% | 0.0% | 0.1% | 0.9% | 0.9% | | 5 | Debt securities, including UoP | 15.6% | 5.8% | 0.0% | 0.1% | 0.1% | | 0.0% | 0.0% | 0.0% | 0.0% | | 15.7% | 5.8% | 0.0% | 0.1% | 0.1% | 0.0% | | 6 | Equity instruments | 29.9% | 1.5% | | 0.1% | 0.6% | | 0.2% | 0.1% | | 0.1% | | 30.1% | 1.7% | | 0.1% | 0.7% | 0.0% | | 7 | Other financial corporations | 18.2% | 5.2% | 0.0% | 0.1% | 2.8% | | 3.3% | 0.1% | 0.0% | 0.1% | | 21.5% | 5.3% | 0.0% | 0.1% | 2.8% | 0.4% | | 8 | of which investment firms | 8.5% | 3.8% | 0.0% | 0.0% | 2.5% | | 0.0% | 0.0% | 0.0% | 0.0% | | 8.5% | 3.8% | 0.0% | 0.0% | 2.5% | 0.1% | | 9 | Loans and advances | 7.8% | 3.9% | 0.0% | 0.0% | 2.6% | | 0.0% | 0.0% | 0.0% | 0.0% | | 7.9% | 3.9% | 0.0% | 0.0% | 2.6% | 0.1% | | 10 | Debt securities, including UoP | 29.1% | 1.3% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 29.1% | 1.3% | 0.0% | 0.0% | 0.0% | 0.0% | | 11 | Equity instruments | 26.0% | 0.6% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 26.0% | 0.6% | | 0.0% | 0.0% | 0.0% | | 12 | of which  management companies | 49.1% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 49.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 13 | Loans and advances | 50.1% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 50.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 14 | Debt securities, including UoP | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 15 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 16 | of which insurance undertakings | 7.4% | 0.4% | 0.0% | 0.0% | 0.1% | | 11.2% | 0.2% | 0.0% | 0.2% | | 18.6% | 0.6% | 0.0% | 0.0% | 0.2% | 0.1% | | 17 | Loans and advances | 8.8% | 0.4% | 0.0% | 0.0% | 0.0% | | 1.9% | 0.0% | 0.0% | 0.0% | | 10.7% | 0.5% | 0.0% | 0.0% | 0.1% | 0.1% | | 18 | Debt securities, including UoP | 1.3% | 0.7% | 0.0% | 0.0% | 0.4% | | 73.1% | 1.0% | 0.0% | 1.0% | | 74.3% | 1.8% | 0.0% | 0.0% | 1.4% | 0.0% | | 19 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 20 | Non-financial undertakings | 24.6% | 7.5% | 0.0% | 0.3% | 4.0% | | 0.2% | 0.0% | 0.0% | 0.0% | | 24.8% | 7.5% | 0.0% | 0.3% | 4.0% | 1.4% | | 21 | Loans and advances | 25.2% | 7.1% | 0.0% | 0.3% | 4.1% | | 0.2% | 0.0% | 0.0% | 0.0% | | 25.3% | 7.1% | 0.0% | 0.3% | 4.1% | 1.3% | | 22 | Debt securities, including UoP | 17.7% | 12.8% | 0.0% | 0.0% | 2.1% | | 0.2% | 0.0% | 0.0% | 0.0% | | 17.9% | 12.8% | 0.0% | 0.0% | 2.1% | 0.1% | | 23 | Equity instruments | 3.0% | 2.5% | | 0.0% | 1.8% | | 18.2% | 18.2% | | 18.2% | | 21.2% | 20.8% | | 0.0% | 20.1% | 0.0% | | 24 | Households | 70.4% | 6.9% | 6.9% | 2.1% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 70.4% | 6.9% | 6.9% | 2.1% | 0.0% | 30.4% | | 25 | of which loans collateralised by residential immovable property | 92.0% | 8.2% | 8.2% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 92.0% | 8.2% | 8.2% | 0.0% | 0.0% | 17.9% | | 26 | of which building renovation loans | 100.0% | 0.2% | 0.2% | 0.2% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 100.0% | 0.2% | 0.2% | 0.2% | 0.0% | 0.1% | | 27 | of which motor vehicle loans | 100.0% | 12.9% | 12.9% | 12.9% | 0.0% | | | | | | | | | | | | | Annual report 2025165 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | % (compared to total covered assets in the denominator) | | 2025 | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Proportion of total assets covered | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 28 | Local governments financing | 46.3% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 46.3% | 0.0% | 0.0% | 0.0% | 0.0% | 0.2% | | 29 | Housing financing | 96.6% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 96.6% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 30 | Other local government financing | 44.5% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 44.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.2% | | 31 | Collateral obtained by taking possession: residential and commercial immovable properties | 1.1% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 1.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.2% | | 32 | Total GAR assets | 31.1% | 3.2% | 3.0% | 0.9% | 0.1% | | 0.0% | 0.0% | 0.0% | 0.0% | | 31.2% | 3.2% | 3.0% | 0.9% | 0.1% | 70.9% | Annual report 2025166 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 3. GAR KPI stock (Capex) - 2024 | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | % (compared to total covered assets in the denominator) | | 2024 | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Proportion of total assets covered | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | GAR - Covered assets in both numerator and denominator | | | | | | | | | | | | | | | | | | | 1 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 67.3% | 6.4% | 5.6% | 1.4% | 0.3% | | 0.0% | 0.0% | 0.0% | 0.0% | | 67.3% | 6.4% | 5.6% | 1.4% | 0.3% | 35.5% | | 2 | Financial undertakings | 22.3% | 6.3% | 0.0% | 0.1% | 1.7% | | 0.1% | 0.0% | 0.0% | 0.0% | | 22.4% | 6.3% | 0.0% | 0.1% | 1.7% | 1.4% | | 3 | Credit institutions | 18.3% | 1.7% | 0.0% | 0.0% | 0.1% | | 0.1% | 0.0% | 0.0% | 0.0% | | 18.4% | 1.7% | 0.0% | 0.0% | 0.1% | 1.0% | | 4 | Loans and advances | 18.4% | 1.7% | 0.0% | 0.0% | 0.1% | | 0.1% | 0.0% | 0.0% | 0.0% | | 18.4% | 1.7% | 0.0% | 0.0% | 0.1% | 0.9% | | 5 | Debt securities, including UoP | 17.3% | 1.4% | 0.0% | 0.0% | 0.0% | | 1.0% | 0.0% | 0.0% | 0.0% | | 18.2% | 1.4% | 0.0% | 0.0% | 0.0% | 0.1% | | 6 | Equity instruments | 30.9% | 3.4% | | 0.0% | 0.0% | | 0.1% | 0.0% | | 0.0% | | 31.0% | 3.5% | | 0.0% | 0.0% | 0.0% | | 7 | Other financial corporations | 32.3% | 17.6% | 0.0% | 0.4% | 5.7% | | 0.0% | 0.0% | 0.0% | 0.0% | | 32.4% | 17.6% | 0.0% | 0.4% | 5.7% | 0.4% | | 8 | of which investment firms | 42.4% | 38.2% | 0.0% | 0.0% | 10.1% | | 0.0% | 0.0% | 0.0% | 0.0% | | 42.4% | 38.2% | 0.0% | 0.0% | 10.1% | 0.1% | | 9 | Loans and advances | 29.7% | 24.7% | 0.0% | 0.0% | 7.6% | | 0.0% | 0.0% | 0.0% | 0.0% | | 29.7% | 24.7% | 0.0% | 0.0% | 7.6% | 0.1% | | 10 | Debt securities, including UoP | 85.5% | 84.0% | 0.0% | 0.0% | 18.7% | | 0.0% | 0.0% | 0.0% | 0.0% | | 85.5% | 84.0% | 0.0% | 0.0% | 18.7% | 0.0% | | 11 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 12 | of which  management companies | 39.3% | 3.0% | 0.0% | 0.0% | 1.9% | | 0.0% | 0.0% | 0.0% | 0.0% | | 39.3% | 3.0% | 0.0% | 0.0% | 1.9% | 0.0% | | 13 | Loans and advances | 34.6% | 1.7% | 0.0% | 0.0% | 1.6% | | 0.0% | 0.0% | 0.0% | 0.0% | | 34.6% | 1.7% | 0.0% | 0.0% | 1.6% | 0.0% | | 14 | Debt securities, including UoP | 50.7% | 5.7% | 0.0% | 0.0% | 2.6% | | 0.0% | 0.0% | 0.0% | 0.0% | | 50.7% | 5.7% | 0.0% | 0.0% | 2.6% | 0.0% | | 15 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 16 | of which insurance undertakings | 12.0% | 0.5% | 0.0% | 0.0% | 0.0% | | 0.1% | 0.0% | 0.0% | 0.0% | | 12.1% | 0.5% | 0.0% | 0.0% | 0.0% | 0.1% | | 17 | Loans and advances | 12.7% | 0.5% | 0.0% | 0.0% | 0.0% | | 0.1% | 0.0% | 0.0% | 0.0% | | 12.8% | 0.5% | 0.0% | 0.0% | 0.0% | 0.1% | | 18 | Debt securities, including UoP | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 19 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 20 | Non-financial undertakings | 40.9% | 15.0% | 0.0% | 2.3% | 6.3% | | 0.3% | 0.1% | 0.0% | 0.0% | | 41.1% | 15.1% | 0.0% | 2.3% | 6.3% | 1.5% | | 21 | Loans and advances | 41.5% | 14.5% | 0.0% | 2.5% | 5.7% | | 0.2% | 0.0% | 0.0% | 0.0% | | 41.7% | 14.6% | 0.0% | 2.5% | 5.7% | 1.4% | | 22 | Debt securities, including UoP | 32.8% | 22.2% | 0.0% | 0.1% | 13.9% | | 0.4% | 0.4% | 0.0% | 0.0% | | 33.2% | 22.7% | 0.0% | 0.1% | 13.9% | 0.1% | | 23 | Equity instruments | 9.6% | 9.5% | | 0.0% | 4.6% | | 0.0% | 0.0% | | 0.0% | | 9.6% | 9.5% | | 0.0% | 4.6% | 0.0% | | 24 | Households | 70.4% | 6.1% | 6.1% | 1.4% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 70.4% | 6.1% | 6.1% | 1.4% | 0.0% | 32.6% | | 25 | of which loans collateralised by residential immovable property | 91.3% | 7.8% | 7.8% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 91.3% | 7.8% | 7.8% | 0.0% | 0.0% | 19.4% | | 26 | of which building renovation loans | 100.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 100.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | | 27 | of which motor vehicle loans | 100.0% | 9.2% | 9.2% | 9.2% | 0.0% | | | | | | | | | | | | | Annual report 2025167 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | % (compared to total covered assets in the denominator) | | 2024 | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Proportion of total assets covered | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 28 | Local governments financing | 83.4% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 83.4% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | | 29 | Housing financing | 99.1% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 99.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 30 | Other local government financing | 81.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 81.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | | 31 | Collateral obtained by taking possession: residential and commercial immovable properties | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.3% | | 32 | Total GAR assets | 34.2% | 3.3% | 2.8% | 0.7% | 0.2% | | 0.0% | 0.0% | 0.0% | 0.0% | | 34.2% | 3.3% | 2.8% | 0.7% | 0.2% | 69.8% | Annual report 2025168 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 3. GAR KPI stock (Turnover) - 2024 | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | % (compared to total covered assets in the denominator) | | 2024 | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Proportio n of total assets covered | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | GAR - Covered assets in both numerator and denominator | | | | | | | | | | | | | | | | | | | 1 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 66.8% | 6.0% | 5.6% | 1.3% | 0.2% | | 0.1% | 0.0% | 0.0% | 0.0% | | 66.9% | 6.0% | 5.6% | 1.3% | 0.2% | 35.5% | | 2 | Financial undertakings | 19.3% | 3.0% | 0.0% | 0.0% | 1.1% | | 1.1% | 0.1% | 0.0% | 0.0% | | 20.4% | 3.1% | 0.0% | 0.0% | 1.1% | 1.4% | | 3 | Credit institutions | 17.9% | 1.5% | 0.0% | 0.0% | 0.0% | | 0.1% | 0.0% | 0.0% | 0.0% | | 18.1% | 1.5% | 0.0% | 0.0% | 0.0% | 1.0% | | 4 | Loans and advances | 18.0% | 1.5% | 0.0% | 0.0% | 0.0% | | 0.1% | 0.0% | 0.0% | 0.0% | | 18.0% | 1.6% | 0.0% | 0.0% | 0.0% | 0.9% | | 5 | Debt securities, including UoP | 17.4% | 1.4% | 0.0% | 0.0% | 0.0% | | 1.0% | 0.0% | 0.0% | 0.0% | | 18.4% | 1.4% | 0.0% | 0.0% | 0.0% | 0.1% | | 6 | Equity instruments | 31.0% | 3.2% | | 0.0% | 0.0% | | 0.1% | 0.0% | | 0.0% | | 31.1% | 3.3% | | 0.0% | 0.0% | 0.0% | | 7 | Other financial corporations | 22.6% | 6.8% | 0.0% | 0.0% | 3.7% | | 3.6% | 0.3% | 0.0% | 0.0% | | 26.2% | 7.0% | 0.0% | 0.0% | 3.8% | 0.4% | | 8 | of which investment firms | 17.1% | 11.4% | 0.0% | 0.0% | 6.1% | | 1.9% | 0.2% | 0.0% | 0.1% | | 18.9% | 11.6% | 0.0% | 0.0% | 6.2% | 0.1% | | 9 | Loans and advances | 9.8% | 3.8% | 0.0% | 0.0% | 2.7% | | 2.4% | 0.3% | 0.0% | 0.1% | | 12.2% | 4.1% | 0.0% | 0.0% | 2.7% | 0.1% | | 10 | Debt securities, including UoP | 41.7% | 37.4% | 0.0% | 0.0% | 18.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 41.7% | 37.4% | 0.0% | 0.0% | 18.0% | 0.0% | | 11 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 12 | of which  management companies | 47.1% | 2.4% | 0.0% | 0.0% | 1.5% | | 0.2% | 0.0% | 0.0% | 0.0% | | 47.3% | 2.4% | 0.0% | 0.0% | 1.5% | 0.0% | | 13 | Loans and advances | 68.4% | 3.4% | 0.0% | 0.0% | 2.1% | | 0.3% | 0.0% | 0.0% | 0.0% | | 68.7% | 3.4% | 0.0% | 0.0% | 2.1% | 0.0% | | 14 | Debt securities, including UoP | 1.5% | 0.2% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 1.5% | 0.2% | 0.0% | 0.0% | 0.0% | 0.0% | | 15 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 16 | of which insurance undertakings | 11.9% | 0.3% | 0.0% | 0.0% | 0.0% | | 10.7% | 0.7% | 0.0% | 0.0% | | 22.6% | 1.1% | 0.0% | 0.0% | 0.0% | 0.1% | | 17 | Loans and advances | 12.6% | 0.4% | 0.0% | 0.0% | 0.0% | | 11.3% | 0.8% | 0.0% | 0.0% | | 23.9% | 1.1% | 0.0% | 0.0% | 0.0% | 0.1% | | 18 | Debt securities, including UoP | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 19 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 20 | Non-financial undertakings | 32.9% | 6.6% | 0.0% | 0.4% | 4.0% | | 0.3% | 0.1% | 0.0% | 0.1% | | 33.2% | 6.7% | 0.0% | 0.4% | 4.1% | 1.5% | | 21 | Loans and advances | 34.2% | 6.3% | 0.0% | 0.4% | 3.6% | | 0.3% | 0.1% | 0.0% | 0.1% | | 34.5% | 6.3% | 0.0% | 0.4% | 3.6% | 1.4% | | 22 | Debt securities, including UoP | 15.2% | 11.7% | 0.0% | 0.0% | 10.4% | | 0.3% | 0.2% | 0.0% | 0.0% | | 15.6% | 11.9% | 0.0% | 0.0% | 10.4% | 0.1% | | 23 | Equity instruments | 6.0% | 4.3% | | 0.0% | 3.0% | | 0.0% | 0.0% | | 0.0% | | 6.0% | 4.3% | | 0.0% | 3.0% | 0.0% | | 24 | Households | 70.4% | 6.1% | 6.1% | 1.4% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 70.4% | 6.1% | 6.1% | 1.4% | 0.0% | 32.6% | | 25 | of which loans collateralised by residential immovable property | 91.3% | 7.8% | 7.8% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 91.3% | 7.8% | 7.8% | 0.0% | 0.0% | 19.4% | | 26 | of which building renovation loans | 100.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 100.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | | 27 | of which motor vehicle loans | 100.0% | 9.2% | 9.2% | 9.2% | 0.0% | | | | | | | | | | | | | Annual report 2025169 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | % (compared to total covered assets in the denominator) | | 2024 | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Proportio n of total assets covered | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 28 | Local governments financing | 83.4% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 83.4% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | | 29 | Housing financing | 99.1% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 99.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 30 | Other local government financing | 81.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 81.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | | 31 | Collateral obtained by taking possession: residential and commercial immovable properties | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.3% | | 32 | Total GAR assets | 34.0% | 3.0% | 2.8% | 0.7% | 0.1% | | 0.0% | 0.0% | 0.0% | 0.0% | | 34.0% | 3.0% | 2.8% | 0.7% | 0.1% | 69.8% | 116 For presentation purposes, the breakdowns relating to the degree of portfolio alignment with the objectives of Biodiversity, Circular Economy, Pollution Prevention and Control, and Water and Marine Resources are not included in these templates, as they are not material in the context of the Taxonomy disclosures, given that their impact on the GAR ratio is residual (eligibility below 0.03% and alignment below 0.007% in all cases). Annual report 2025170 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 4. GAR KPI flow (Capex) - 2025 116 | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | % (compared to total covered assets in the denominator) | | 2025 | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Proportion of total new assets covered | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | GAR - Covered assets in both numerator and denominator | | | | | | | | | | | | | | | | | | | 1 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 63.9% | 9.9% | 7.0% | 4.0% | 1.2% | | 0.0% | 0.0% | 0.0% | 0.0% | | 64.0% | 9.9% | 7.0% | 4.0% | 1.2% | 26.0% | | 2 | Financial undertakings | 16.0% | 5.9% | 0.0% | 0.2% | 2.2% | | 0.0% | 0.0% | 0.0% | 0.0% | | 16.0% | 5.9% | 0.0% | 0.2% | 2.2% | 3.0% | | 3 | Credit institutions | 10.6% | 1.3% | 0.0% | 0.1% | 0.1% | | 0.0% | 0.0% | 0.0% | 0.0% | | 10.6% | 1.3% | 0.0% | 0.1% | 0.1% | 2.0% | | 4 | Loans and advances | 10.6% | 1.2% | 0.0% | 0.1% | 0.1% | | 0.0% | 0.0% | 0.0% | 0.0% | | 10.7% | 1.2% | 0.0% | 0.1% | 0.1% | 2.0% | | 5 | Debt securities, including UoP | 10.1% | 3.9% | 0.0% | 0.1% | 0.1% | | 0.0% | 0.0% | 0.0% | 0.0% | | 10.1% | 3.9% | 0.0% | 0.1% | 0.1% | 0.0% | | 6 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 7 | Other financial corporations | 33.9% | 21.3% | 0.0% | 0.4% | 9.1% | | 0.1% | 0.1% | 0.0% | 0.0% | | 34.0% | 21.3% | 0.0% | 0.4% | 9.1% | 1.0% | | 8 | of which investment firms | 15.6% | 7.6% | 0.0% | 0.0% | 2.3% | | 0.3% | 0.1% | 0.0% | 0.0% | | 15.9% | 7.7% | 0.0% | 0.0% | 2.3% | 0.0% | | 9 | Loans and advances | 15.1% | 7.7% | 0.0% | 0.0% | 2.4% | | 0.3% | 0.1% | 0.0% | 0.0% | | 15.4% | 7.8% | 0.0% | 0.0% | 2.4% | 0.0% | | 10 | Debt securities, including UoP | 37.9% | 4.2% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 37.9% | 4.2% | 0.0% | 0.0% | 0.0% | 0.0% | | 11 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 12 | of which  management companies | 14.4% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 14.4% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 13 | Loans and advances | 14.4% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 14.4% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 14 | Debt securities, including UoP | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 15 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 16 | of which insurance undertakings | 1.9% | 1.5% | 0.0% | 0.0% | 0.4% | | 0.0% | 0.0% | 0.0% | 0.0% | | 1.9% | 1.5% | 0.0% | 0.0% | 0.4% | 0.0% | | 17 | Loans and advances | 5.2% | 0.3% | 0.0% | 0.0% | 0.1% | | 0.0% | 0.0% | 0.0% | 0.0% | | 5.2% | 0.3% | 0.0% | 0.0% | 0.1% | 0.0% | | 18 | Debt securities, including UoP | 1.9% | 1.5% | 0.0% | 0.0% | 0.4% | | 0.0% | 0.0% | 0.0% | 0.0% | | 1.9% | 1.5% | 0.0% | 0.0% | 0.4% | 0.0% | | 19 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 20 | Non-financial undertakings | 32.8% | 19.6% | 0.0% | 0.4% | 8.1% | | 0.2% | 0.1% | 0.0% | 0.1% | | 33.0% | 19.8% | 0.0% | 0.4% | 8.2% | 3.0% | | 21 | Loans and advances | 32.7% | 18.9% | 0.0% | 0.5% | 8.6% | | 0.2% | 0.1% | 0.0% | 0.0% | | 32.9% | 19.0% | 0.0% | 0.5% | 8.7% | 3.0% | | 22 | Debt securities, including UoP | 34.0% | 28.0% | 0.0% | 0.0% | 1.5% | | 0.9% | 0.8% | 0.0% | 0.8% | | 34.9% | 28.9% | 0.0% | 0.0% | 2.3% | 0.0% | | 23 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 24 | Households | 75.4% | 9.1% | 9.1% | 5.1% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 75.4% | 9.1% | 9.1% | 5.1% | 0.0% | 20.0% | | 25 | of which loans collateralised by residential immovable property | 96.6% | 9.2% | 9.2% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 96.6% | 9.2% | 9.2% | 0.0% | 0.0% | 9.0% | | 26 | of which building renovation loans | 100.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 100.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 27 | of which motor vehicle loans | 100.0% | 15.3% | 15.3% | 15.3% | 0.0% | | | | | | | 100.0% | 15.3% | 15.3% | 15.3% | 0.0% | 7.0% | Annual report 2025171 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | % (compared to total covered assets in the denominator) | | 2025 | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Proportion of total new assets covered | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 28 | Local governments financing | 40.6% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 40.6% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 29 | Housing financing | 67.4% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 67.4% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 30 | Other local government financing | 40.5% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 40.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 31 | Collateral obtained by taking possession: residential and commercial immovable properties | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 32 | Total GAR assets | 24.8% | 3.8% | 2.7% | 1.6% | 0.5% | | 0.0% | 0.0% | 0.0% | 0.0% | | 24.8% | 3.8% | 2.7% | 1.6% | 0.5% | 67.8% | 117 For presentation purposes, the breakdowns relating to the degree of portfolio alignment with the objectives of Biodiversity, Circular Economy, Pollution Prevention and Control, and Water and Marine Resources are not included in these templates, as they are not material in the context of the Taxonomy disclosures, given that their impact on the GAR ratio is residual (eligibility below 0.03% and alignment below 0.007% in all cases). Annual report 2025172 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 4. GAR KPI flow (Turnover) - 2025 117 | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | % (compared to total covered assets in the denominator) | | 2025 | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Proportion of total new assets covered | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | GAR - Covered assets in both numerator and denominator | | | | | | | | | | | | | | | | | | | 1 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 62.9% | 8.5% | 7.0% | 4.0% | 0.8% | | 0.2% | 0.0% | 0.0% | 0.0% | | 63.1% | 8.5% | 7.0% | 4.0% | 0.8% | 26.0% | | 2 | Financial undertakings | 18.4% | 4.2% | 0.0% | 0.1% | 1.9% | | 2.0% | 0.2% | 0.0% | 0.2% | | 20.4% | 4.4% | 0.0% | 0.1% | 2.1% | 3.0% | | 3 | Credit institutions | 16.5% | 2.6% | 0.0% | 0.1% | 1.1% | | 0.4% | 0.3% | 0.0% | 0.3% | | 17.0% | 2.9% | 0.0% | 0.1% | 1.3% | 2.0% | | 4 | Loans and advances | 16.7% | 2.6% | 0.0% | 0.1% | 1.1% | | 0.4% | 0.3% | 0.0% | 0.3% | | 17.1% | 2.9% | 0.0% | 0.1% | 1.3% | 2.0% | | 5 | Debt securities, including UoP | 9.9% | 3.7% | 0.0% | 0.1% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 9.9% | 3.7% | 0.0% | 0.1% | 0.0% | 0.0% | | 6 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 7 | Other financial corporations | 24.6% | 9.4% | 0.0% | 0.1% | 4.5% | | 7.3% | 0.1% | 0.0% | 0.1% | | 31.9% | 9.5% | 0.0% | 0.1% | 4.6% | 1.0% | | 8 | of which investment firms | 4.5% | 1.6% | 0.0% | 0.1% | 0.9% | | 0.0% | 0.0% | 0.0% | 0.0% | | 4.5% | 1.6% | 0.0% | 0.1% | 0.9% | 0.0% | | 9 | Loans and advances | 3.7% | 1.5% | 0.0% | 0.1% | 0.9% | | 0.0% | 0.0% | 0.0% | 0.0% | | 3.7% | 1.5% | 0.0% | 0.1% | 0.9% | 0.0% | | 10 | Debt securities, including UoP | 37.7% | 4.1% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 37.7% | 4.1% | 0.0% | 0.0% | 0.0% | 0.0% | | 11 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 12 | of which  management companies | 0.3% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 0.3% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 13 | Loans and advances | 0.3% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 0.3% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 14 | Debt securities, including UoP | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 15 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 16 | of which insurance undertakings | 1.3% | 0.7% | 0.0% | 0.0% | 0.4% | | 73.0% | 1.0% | 0.0% | 1.0% | | 74.2% | 1.8% | 0.0% | 0.0% | 1.4% | 0.0% | | 17 | Loans and advances | 5.1% | 0.2% | 0.0% | 0.0% | 0.0% | | 14.6% | 0.3% | 0.0% | 0.2% | | 19.7% | 0.5% | 0.0% | 0.0% | 0.3% | 0.0% | | 18 | Debt securities, including UoP | 1.3% | 0.7% | 0.0% | 0.0% | 0.4% | | 73.1% | 1.0% | 0.0% | 1.0% | | 74.3% | 1.8% | 0.0% | 0.0% | 1.4% | 0.0% | | 19 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 20 | Non-financial undertakings | 22.0% | 8.8% | 0.0% | 0.3% | 4.9% | | 0.1% | 0.0% | 0.0% | 0.0% | | 22.1% | 8.8% | 0.0% | 0.3% | 4.9% | 3.0% | | 21 | Loans and advances | 22.5% | 8.3% | 0.0% | 0.4% | 5.2% | | 0.1% | 0.0% | 0.0% | 0.0% | | 22.6% | 8.3% | 0.0% | 0.4% | 5.3% | 3.0% | | 22 | Debt securities, including UoP | 15.6% | 14.5% | 0.0% | 0.0% | 0.3% | | 0.4% | 0.0% | 0.0% | 0.0% | | 16.0% | 14.5% | 0.0% | 0.0% | 0.3% | 0.0% | | 23 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 24 | Households | 75.4% | 9.1% | 9.1% | 5.1% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 75.4% | 9.1% | 9.1% | 5.1% | 0.0% | 20.0% | | 25 | of which loans collateralised by residential immovable property | 96.6% | 9.2% | 9.2% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 96.6% | 9.2% | 9.2% | 0.0% | 0.0% | 9.0% | | 26 | of which building renovation loans | 100.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 100.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 27 | of which motor vehicle loans | 100.0% | 15.3% | 15.3% | 15.3% | 0.0% | | | | | | | 100.0% | 15.3% | 15.3% | 15.3% | 0.0% | 7.0% | Annual report 2025173 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | % (compared to total covered assets in the denominator) | | 2025 | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Proportion of total new assets covered | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 28 | Local governments financing | 40.6% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 40.6% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 29 | Housing financing | 67.4% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 67.4% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 30 | Other local government financing | 40.5% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 40.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 31 | Collateral obtained by taking possession: residential and commercial immovable properties | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 32 | Total GAR assets | 24.4% | 3.3% | 2.7% | 1.5% | 0.3% | | 0.1% | 0.0% | 0.0% | 0.0% | | 24.5% | 3.3% | 2.7% | 1.5% | 0.3% | 67.8% | Annual report 2025174 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 4. GAR KPI flow (Capex) - 2024 | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | % (compared to total covered assets in the denominator) | | 2024 | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Proportion of total new assets covered | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | GAR - Covered assets in both numerator and denominator | | | | | | | | | | | | | | | | | | | 1 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 58.1% | 8.8% | 5.5% | 4.2% | 1.3% | | 0.0% | 0.0% | 0.0% | 0.0% | | 58.2% | 8.8% | 5.5% | 4.2% | 1.3% | 25.0% | | 2 | Financial undertakings | 25.5% | 10.2% | 0.0% | 0.2% | 2.6% | | 0.2% | 0.0% | 0.0% | 0.0% | | 25.7% | 10.2% | 0.0% | 0.2% | 2.6% | 2.0% | | 3 | Credit institutions | 17.8% | 1.8% | 0.0% | 0.0% | 0.1% | | 0.2% | 0.0% | 0.0% | 0.0% | | 18.0% | 1.8% | 0.0% | 0.0% | 0.1% | 2.0% | | 4 | Loans and advances | 17.5% | 1.8% | 0.0% | 0.0% | 0.1% | | 0.0% | 0.0% | 0.0% | 0.0% | | 17.5% | 1.8% | 0.0% | 0.0% | 0.1% | 2.0% | | 5 | Debt securities, including UoP | 27.2% | 2.5% | 0.0% | 0.0% | 0.0% | | 5.3% | 0.0% | 0.0% | 0.0% | | 32.5% | 2.5% | 0.0% | 0.0% | 0.0% | 0.0% | | 6 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 7 | Other financial corporations | 57.3% | 44.6% | 0.0% | 1.2% | 13.2% | | 0.0% | 0.0% | 0.0% | 0.0% | | 57.3% | 44.6% | 0.0% | 1.2% | 13.2% | 0.0% | | 8 | of which investment firms | 92.7% | 91.2% | 0.0% | 0.0% | 21.2% | | 0.0% | 0.0% | 0.0% | 0.0% | | 92.7% | 91.2% | 0.0% | 0.0% | 21.2% | 0.0% | | 9 | Loans and advances | 71.1% | 66.5% | 0.0% | 0.0% | 20.3% | | 0.0% | 0.0% | 0.0% | 0.0% | | 71.1% | 66.5% | 0.0% | 0.0% | 20.3% | 0.0% | | 10 | Debt securities, including UoP | 97.3% | 96.4% | 0.0% | 0.0% | 21.4% | | 0.0% | 0.0% | 0.0% | 0.0% | | 97.3% | 96.4% | 0.0% | 0.0% | 21.4% | 0.0% | | 11 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 12 | of which  management companies | 54.5% | 7.7% | 0.0% | 0.0% | 4.9% | | 0.0% | 0.0% | 0.0% | 0.0% | | 54.5% | 7.7% | 0.0% | 0.0% | 4.9% | 0.0% | | 13 | Loans and advances | 70.3% | 15.7% | 0.0% | 0.0% | 14.1% | | 0.1% | 0.0% | 0.0% | 0.0% | | 70.4% | 15.7% | 0.0% | 0.0% | 14.1% | 0.0% | | 14 | Debt securities, including UoP | 50.7% | 5.7% | 0.0% | 0.0% | 2.6% | | 0.0% | 0.0% | 0.0% | 0.0% | | 50.7% | 5.7% | 0.0% | 0.0% | 2.6% | 0.0% | | 15 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 16 | of which insurance undertakings | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 17 | Loans and advances | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 18 | Debt securities, including UoP | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 19 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 20 | Non-financial undertakings | 37.9% | 20.5% | 0.0% | 3.9% | 9.0% | | 0.2% | 0.1% | 0.0% | 0.0% | | 38.1% | 20.6% | 0.0% | 3.9% | 9.1% | 3.0% | | 21 | Loans and advances | 38.2% | 19.8% | 0.0% | 4.3% | 8.2% | | 0.2% | 0.0% | 0.0% | 0.0% | | 38.4% | 19.9% | 0.0% | 4.3% | 8.2% | 3.0% | | 22 | Debt securities, including UoP | 35.3% | 26.9% | 0.0% | 0.0% | 17.2% | | 0.6% | 0.6% | 0.0% | 0.1% | | 36.0% | 27.5% | 0.0% | 0.0% | 17.3% | 0.0% | | 23 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 24 | Households | 64.4% | 6.9% | 6.9% | 4.7% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 64.4% | 6.9% | 6.9% | 4.7% | 0.0% | 20.0% | | 25 | of which loans collateralised by residential immovable property | 93.1% | 6.1% | 6.1% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 93.1% | 6.1% | 6.1% | 0.0% | 0.0% | 7.0% | | 26 | of which building renovation loans | 100.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 100.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 27 | of which motor vehicle loans | 100.0% | 15.4% | 15.4% | 15.4% | 0.0% | | | | | | | 100.0% | 15.4% | 15.4% | 15.4% | 0.0% | 6.0% | Annual report 2025175 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | % (compared to total covered assets in the denominator) | | 2024 | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Proportion of total new assets covered | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 28 | Local governments financing | 97.7% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 97.7% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 29 | Housing financing | 94.4% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 94.4% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 30 | Other local government financing | 98.1% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 98.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 31 | Collateral obtained by taking possession: residential and commercial immovable properties | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 32 | Total GAR assets | 22.2% | 3.3% | 2.1% | 1.6% | 0.5% | | 0.0% | 0.0% | 0.0% | 0.0% | | 22.2% | 3.3% | 2.1% | 1.6% | 0.5% | 65.9% | Annual report 2025176 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 4. GAR KPI flow (Turnover) - 2024 | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | % (compared to total covered assets in the denominator) | | 2024 | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Proportion of total new assets covered | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | GAR - Covered assets in both numerator and denominator | | | | | | | | | | | | | | | | | | | 1 | Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation | 56.6% | 6.9% | 5.5% | 3.8% | 0.8% | | 0.0% | 0.0% | 0.0% | 0.0% | | 56.7% | 6.9% | 5.5% | 3.8% | 0.8% | 25.0% | | 2 | Financial undertakings | 21.2% | 5.3% | 0.0% | 0.0% | 2.1% | | 0.2% | 0.0% | 0.0% | 0.0% | | 21.4% | 5.3% | 0.0% | 0.0% | 2.1% | 2.0% | | 3 | Credit institutions | 18.4% | 2.0% | 0.0% | 0.0% | 0.0% | | 0.2% | 0.0% | 0.0% | 0.0% | | 18.6% | 2.0% | 0.0% | 0.0% | 0.0% | 2.0% | | 4 | Loans and advances | 18.1% | 1.9% | 0.0% | 0.0% | 0.0% | | 0.1% | 0.0% | 0.0% | 0.0% | | 18.1% | 2.0% | 0.0% | 0.0% | 0.0% | 2.0% | | 5 | Debt securities, including UoP | 27.2% | 2.5% | 0.0% | 0.0% | 0.0% | | 5.3% | 0.0% | 0.0% | 0.0% | | 32.5% | 2.5% | 0.0% | 0.0% | 0.0% | 0.0% | | 6 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 7 | Other financial corporations | 33.0% | 18.9% | 0.0% | 0.1% | 10.6% | | 0.1% | 0.0% | 0.0% | 0.0% | | 33.1% | 18.9% | 0.0% | 0.1% | 10.6% | 0.0% | | 8 | of which investment firms | 42.5% | 37.2% | 0.0% | 0.0% | 18.3% | | 0.0% | 0.0% | 0.0% | 0.0% | | 42.5% | 37.2% | 0.0% | 0.0% | 18.3% | 0.0% | | 9 | Loans and advances | 20.8% | 10.0% | 0.0% | 0.0% | 7.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 20.8% | 10.0% | 0.0% | 0.0% | 7.0% | 0.0% | | 10 | Debt securities, including UoP | 47.1% | 43.0% | 0.0% | 0.0% | 20.7% | | 0.0% | 0.0% | 0.0% | 0.0% | | 47.1% | 43.0% | 0.0% | 0.0% | 20.7% | 0.0% | | 11 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 12 | of which  management companies | 18.0% | 6.1% | 0.0% | 0.0% | 3.8% | | 0.5% | 0.0% | 0.0% | 0.0% | | 18.5% | 6.1% | 0.0% | 0.0% | 3.8% | 0.0% | | 13 | Loans and advances | 85.3% | 30.1% | 0.0% | 0.2% | 19.2% | | 2.4% | 0.0% | 0.0% | 0.0% | | 87.6% | 30.1% | 0.0% | 0.2% | 19.2% | 0.0% | | 14 | Debt securities, including UoP | 1.5% | 0.2% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 1.5% | 0.2% | 0.0% | 0.0% | 0.0% | 0.0% | | 15 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 16 | of which insurance undertakings | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.1% | 0.0% | 0.0% | 0.0% | | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 17 | Loans and advances | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.1% | 0.0% | 0.0% | 0.0% | | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 18 | Debt securities, including UoP | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 19 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 20 | Non-financial undertakings | 28.2% | 8.1% | 0.0% | 0.6% | 5.1% | | 0.2% | 0.0% | 0.0% | 0.0% | | 28.5% | 8.1% | 0.0% | 0.6% | 5.1% | 3.0% | | 21 | Loans and advances | 29.7% | 7.6% | 0.0% | 0.7% | 4.3% | | 0.2% | 0.0% | 0.0% | 0.0% | | 30.0% | 7.6% | 0.0% | 0.7% | 4.3% | 3.0% | | 22 | Debt securities, including UoP | 14.0% | 13.0% | 0.0% | 0.0% | 12.3% | | 0.5% | 0.3% | 0.0% | 0.0% | | 14.5% | 13.2% | 0.0% | 0.0% | 12.3% | 0.0% | | 23 | Equity instruments | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | | 0.0% | | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | | 24 | Households | 64.4% | 6.9% | 6.9% | 4.7% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 64.4% | 6.9% | 6.9% | 4.7% | 0.0% | 20.0% | | 25 | of which loans collateralised by residential immovable property | 93.1% | 6.1% | 6.1% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 93.1% | 6.1% | 6.1% | 0.0% | 0.0% | 7.0% | | 26 | of which building renovation loans | 100.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 100.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 27 | of which motor vehicle loans | 100.0% | 15.4% | 15.4% | 15.4% | 0.0% | | | | | | | 100.0% | 15.4% | 15.4% | 15.4% | 0.0% | 6.0% | Annual report 2025177 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | % (compared to total covered assets in the denominator) | | 2024 | | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Of which towards taxonomy relevant sectors (Taxonomy-eligible) | | | | | Proportion of total new assets covered | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | Of which environmentally sustainable (Taxonomy-aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 28 | Local governments financing | 97.7% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 97.7% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 29 | Housing financing | 94.4% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 94.4% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 30 | Other local government financing | 98.1% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 98.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 31 | Collateral obtained by taking possession: residential and commercial immovable properties | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | | 32 | Total GAR assets | 21.6% | 2.6% | 2.1% | 1.5% | 0.3% | | 0.0% | 0.0% | 0.0% | 0.0% | | 21.6% | 2.6% | 2.1% | 1.5% | 0.3% | 65.9% | 118 For presentation purposes, the breakdowns relating to the degree of portfolio alignment with the objectives of Biodiversity, Circular Economy, Pollution Prevention and Control, and Water and Marine Resources are not included in these templates, as they are not material in the context of the Taxonomy disclosures, given that their impact on the GAR ratio is residual (eligibility below 0.03% and alignment below 0.007% in all cases). Annual report 2025178 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 5. KPI off-balance sheet exposures (Capex stock) - 2025 118 | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | % (compared to total eligible off-balance sheet assets) | | 2025 | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) | | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 1 | Financial guarantees (FinGuar KPI) | 7.5% | 3.4% | 0.0% | 0.3% | 2.3% | | 0.1% | 0.0% | 0.0% | 0.0% | | 7.6% | 3.4% | 0.0% | 0.3% | 2.3% | | 2 | Assets under management (AuM KPI) | 9.8% | 2.7% | 0.0% | 0.1% | 1.1% | | 0.1% | 0.1% | 0.0% | 0.0% | | 9.9% | 2.7% | 0.0% | 0.1% | 1.2% | 5. KPI off-balance sheet exposures (Turnover stock) - 2025119 | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | % (compared to total eligible off-balance sheet assets) | | 2025 | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) | | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 1 | Financial guarantees (FinGuar KPI) | 5.5% | 1.6% | 0.0% | 0.1% | 1.2% | | 0.2% | 0.0% | 0.0% | 0.0% | | 5.6% | 1.7% | 0.0% | 0.1% | 1.2% | | 2 | Assets under management (AuM KPI) | 11.4% | 1.9% | 0.0% | 0.1% | 0.8% | | 0.6% | 0.0% | 0.0% | 0.0% | | 11.9% | 1.9% | 0.0% | 0.1% | 0.9% | 119 For presentation purposes, the breakdowns relating to the degree of portfolio alignment with the objectives of Biodiversity, Circular Economy, Pollution Prevention and Control, and Water and Marine Resources are not included in these templates, as they are not material in the context of the Taxonomy disclosures, given that their impact on the GAR ratio is residual (eligibility below 0.03% and alignment below 0.007% in all cases). Annual report 2025179 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 5. KPI off-balance sheet exposures (Capex flow) - 2025 119 | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | % (compared to total eligible off-balance sheet assets) | | 2025 | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) | | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 1 | Financial guarantees (FinGuar KPI) | 11.3% | 4.7% | 0.0% | 0.0% | 3.9% | | 0.2% | 0.0% | 0.0% | 0.0% | | 11.5% | 4.7% | 0.0% | 0.0% | 3.9% | | 2 | Assets under management (AuM KPI) | 16.7% | 4.2% | 0.0% | 0.2% | 1.9% | | 0.1% | 0.1% | 0.0% | 0.0% | | 16.9% | 4.3% | 0.0% | 0.2% | 1.9% | 5. KPI off-balance sheet exposures (Turnover flow) - 2025120 | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | % (compared to total eligible off-balance sheet assets) | | 2025 | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) | | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 1 | Financial guarantees (FinGuar KPI) | 8.4% | 1.7% | 0.0% | 0.0% | 1.5% | | 0.0% | 0.0% | 0.0% | 0.0% | | 8.4% | 1.7% | 0.0% | 0.0% | 1.5% | | 2 | Assets under management (AuM KPI) | 17.6% | 2.9% | 0.0% | 0.1% | 1.3% | | 0.7% | 0.0% | 0.0% | 0.0% | | 18.4% | 2.9% | 0.0% | 0.1% | 1.3% | Annual report 2025180 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 5. KPI off-balance sheet exposures (Capex stock) - 2024 | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | % (compared to total eligible off-balance sheet assets) | | 2024 | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) | | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 1 | Financial guarantees (FinGuar KPI) | 7.6% | 3.4% | 0.0% | 0.3% | 2.3% | | 0.2% | 0.1% | 0.0% | 0.0% | | 7.8% | 3.5% | 0.0% | 0.3% | 2.3% | | 2 | Assets under management (AuM KPI) | 8.4% | 2.1% | 0.0% | 0.1% | 0.9% | | 0.2% | 0.0% | 0.0% | 0.0% | | 8.7% | 2.1% | 0.0% | 0.1% | 0.9% | 5. KPI off-balance sheet exposures (Turnover stock) - 2024 | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | % (compared to total eligible off-balance sheet assets) | | 2024 | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) | | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 1 | Financial guarantees (FinGuar KPI) | 4.8% | 1.3% | 0.0% | 0.0% | 1.0% | | 0.4% | 0.2% | 0.0% | 0.2% | | 5.2% | 1.5% | 0.0% | 0.0% | 1.2% | | 2 | Assets under management (AuM KPI) | 8.2% | 1.3% | 0.0% | 0.0% | 0.5% | | 0.5% | 0.0% | 0.0% | 0.0% | | 8.7% | 1.3% | 0.0% | 0.0% | 0.5% | Annual report 2025181 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 5. KPI off-balance sheet exposures (Capex flow) - 2024 | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | % (compared to total eligible off-balance sheet assets) | | 2024 | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) | | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 1 | Financial guarantees (FinGuar KPI) | 13.4% | 5.5% | 0.0% | 1.0% | 4.0% | | 0.7% | 0.3% | 0.0% | 0.0% | | 14.1% | 5.8% | 0.0% | 1.0% | 4.0% | | 2 | Assets under management (AuM KPI) | 9.7% | 2.1% | 0.0% | 0.1% | 0.9% | | 0.4% | 0.0% | 0.0% | 0.0% | | 10.0% | 2.1% | 0.0% | 0.1% | 0.9% | 5. KPI off-balance sheet exposures (Turnover flow) - 2024 | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | % (compared to total eligible off-balance sheet assets) | | 2024 | | | | | | | | | | | | | | | | | Climate Change Mitigation (CCM) | | | | | | Climate Change Adaptation (CCA) | | | | | TOTAL (CCM + CCA) | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) | | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) | | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) | | | | | Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) | | | | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | | | Of which Use of Proceeds | Of which enabling | | | | Of which Use of Proceeds | Of which transitional | Of which enabling | | 1 | Financial guarantees (FinGuar KPI) | 7.0% | 2.5% | 0.0% | 0.0% | 2.0% | | 0.1% | 0.0% | 0.0% | 0.0% | | 7.1% | 2.5% | 0.0% | 0.0% | 2.0% | | 2 | Assets under management (AuM KPI) | 9.1% | 1.2% | 0.0% | 0.1% | 0.5% | | 0.6% | 0.0% | 0.0% | 0.0% | | 9.7% | 1.3% | 0.0% | 0.1% | 0.5% | 120 For presentation purposes, the breakdowns relating to the degree of portfolio alignment with the objectives of Biodiversity, Circular Economy, Pollution Prevention and Control, and Water and Marine Resources are not included in these templates, as they are not material in the context of the Taxonomy disclosures, given that their impact on the GAR ratio is residual (eligibility below 1.7% and alignment below 0.07% in all cases). Annual report 2025182 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 6. The proportion of the insurance or reinsurance undertaking’s investments that are directed at funding, or are associated with, Taxonomy-aligned in relation to total investments - 2025 120 | | | | | | | --- | --- | --- | --- | --- | | | | | | | | The weighted average value of all the investments of insurance or reinsurance undertakings that are directed at funding, or are associated with Taxonomy-aligned economic activities relative to the value of total assets covered by the KPI, with following weights for investments in undertakings per below: | | | The weighted average value of all the investments of insurance or reinsurance undertakings that are directed at funding, or are associated with Taxonomy-aligned economic activities, with following weights for investments in undertakings per below: | | | Turnover-based: % | 1.7% | | Turnover-based: [EUR million] | 142 | | CapEx—based: % | 2.1% | | CapEx-based: [EUR million] | 175 | | The percentage of assets covered by the KPI relative to total investments of insurance or reinsurance undertakings (total AuM). Excluding investments in sovereign entities. | | | The monetary value of assets covered by the KPI. Excluding investments in sovereign entities. | | | Coverage ratio: % | 35.9% | | Coverage: [EUR million] | 8,388 | | Additional, complementary disclosures: breakdown of denominator of the KPI | | | | | | The percentage of derivatives relative to total assets covered by the KPI. | | | The value in EUR millions of derivatives:. | | | X % | 0.4% | | [EUR million] | 31 | | The proportion of exposures to financial and non-financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/ EU over total assets covered by the KPI: | | | Value of exposures to financial and non-financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/EU: | | | For non-financial undertakings: | 2.2% | | For non-financial undertakings: [EUR million] | 181 | | For financial undertakings: | 32.2% | | For financial undertakings: [EUR million] | 2,701 | | The proportion of exposures to financial and non-financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: | | | Value of exposures to financial and non-financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU: | | | For non-financial undertakings: | 1.9% | | For non-financial undertakings: [EUR million] | 155 | | For financial undertakings: | 3.3% | | For financial undertakings: [EUR million] | 274 | | The proportion of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: | | | Value of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU: | | | For non-financial undertakings: | 2.8% | | For non-financial undertakings: [EUR million] | 231 | | For financial undertakings: | 33.7% | | For financial undertakings: [EUR million] | 2,828 | | The proportion of exposures to other counterparties over total assets covered by the KPI: | | | Value of exposures to other counterparties: | | | X % | 23.7% | | [EUR million] | 1,986 | | The proportion of the insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned economic activities: X % | | | The proportion of the insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned economic activities: | | | X % | 80.7% | | [EUR million] | 6,772 | | The value of all the investments that are funding economic activities that are not Taxonomy-eligible relative to the value of total assets covered by the KPI: | | | Value of all the investments that are funding economic activities that are not Taxonomy-eligible: | | | X % | 92.1% | | [EUR million] | 7,723 | | The value of all the investments that are funding taxonomy-eligible economic activities, but not taxonomy- aligned relative to the value of total assets covered by the KPI: | | | Value of all the investments that are funding Taxonomy- eligible economic activities, but not taxonomy- aligned: | | | X % | 6.2% | | [EUR million] | 522 | Annual report 2025183 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Additional, complementary disclosures: breakdown of numerator of the KPI | | | | | | The proportion of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: | | | Value of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU: | | | For non-financial undertakings: | | | For non-financial undertakings: | | | Turnover-based: % | 0.3% | | Turnover-based: [EUR million] | 25 | | Capital expenditures-based: % | 0.5% | | Capital expenditures-based: [EUR million] | 42 | | For financial undertakings: | | | For financial undertakings: | | | Turnover-based: % | 1.4% | | Turnover-based: [EUR million] | 117 | | Capital expenditures-based: % | 1.6% | | Capital expenditures-based: [EUR million] | 133 | | The proportion of the insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned: | | | Value of insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned: | | | Turnover-based: % | 1% | | Turnover-based: [EUR million] | 106 | | Capital expenditures-based: % | 2% | | Capital expenditures-based: [EUR million] | 130 | | The proportion of exposures to other counterparties and assets over total assets covered by the KPI: | | | Value of taxonomy-aligned exposures to other counterparties: | | | Turnover-based: % | 0% | | Turnover-based: [EUR million] | 0 | | Capital expenditures-based: % | 0% | | Capital expenditures-based: [EUR million] | 0 | | Breakdown of the numerator of the KPI per environmental objective | | | | | | Taxonomy-aligned activities –: | | | | | | (1) Climate change mitigation | Turnover: 1.7% | | Transitional activities turnover: A% | 0.0% | | | Transitional activities capex: A% | 0.1% | | CapEx: 2.1% | | Enabling activities turnover: B% | 0.9% | | | Enabling activities capex: B% | 0.6% | | (2) Climate change adaptation | Turnover: —% | | Enabling activities turnover: A% | 0.0% | | CapEx: —% | | Enabling activities capex: B% | 0.0% | Annual report 2025184 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 6. The proportion of the insurance or reinsurance undertaking’s investments that are directed at funding, or are associated with, Taxonomy-aligned in relation to total investments - 2024 | | | | | | | --- | --- | --- | --- | --- | | | | | | | | The weighted average value of all the investments of insurance or reinsurance undertakings that are directed at funding, or are associated with Taxonomy-aligned economic activities relative to the value of total assets covered by the KPI, with following weights for investments in undertakings per below: | | | The weighted average value of all the investments of insurance or reinsurance undertakings that are directed at funding, or are associated with Taxonomy-aligned economic activities, with following weights for investments in undertakings per below: | | | Turnover-based: % | 1.4% | | Turnover-based: [EUR million] | 125 | | CapEx—based: % | 2.1% | | CapEx-based: [EUR million] | 177 | | The percentage of assets covered by the KPI relative to total investments of insurance or reinsurance undertakings (total AuM). Excluding investments in sovereign entities. | | | The monetary value of assets covered by the KPI. Excluding investments in sovereign entities. | | | Coverage ratio: % | 38.9% | | Coverage: [EUR million] | 8,654 | | Additional, complementary disclosures: breakdown of denominator of the KPI | | | | | | The percentage of derivatives relative to total assets covered by the KPI. | | | The value in EUR millions of derivatives:. | | | X % | 0.7% | | [EUR million] | 61 | | The proportion of exposures to financial and non-financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/ EU over total assets covered by the KPI: | | | Value of exposures to financial and non-financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/EU: | | | For non-financial undertakings: | 1.4% | | For non-financial undertakings: [EUR million] | 122 | | For financial undertakings: | 26.0% | | For financial undertakings: [EUR million] | 2,249 | | The proportion of exposures to financial and non-financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: | | | Value of exposures to financial and non-financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU: | | | For non-financial undertakings: | 1.7% | | For non-financial undertakings: [EUR million] | 145 | | For financial undertakings: | 1.4% | | For financial undertakings: [EUR million] | 121 | | The proportion of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: | | | Value of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU: | | | For non-financial undertakings: | 4.6% | | For non-financial undertakings: [EUR million] | 394 | | For financial undertakings: | 17.4% | | For financial undertakings: [EUR million] | 1,502 | | The proportion of exposures to other counterparties over total assets covered by the KPI: | | | Value of exposures to other counterparties: | | | X % | 46.9% | | [EUR million] | 4,060 | | The proportion of the insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned economic activities: X % | | | The proportion of the insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned economic activities: | | | X % | 80.9% | | [EUR million] | 6,999 | | The value of all the investments that are funding economic activities that are not Taxonomy-eligible relative to the value of total assets covered by the KPI: | | | Value of all the investments that are funding economic activities that are not Taxonomy-eligible: | | | X % | 88.3% | | [EUR million] | 7,639 | | The value of all the investments that are funding taxonomy-eligible economic activities, but not taxonomy- aligned relative to the value of total assets covered by the KPI: | | | Value of all the investments that are funding Taxonomy- eligible economic activities, but not taxonomy- aligned: | | | X % | 10.3% | | [EUR million] | 890 | Annual report 2025185 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Additional, complementary disclosures: breakdown of numerator of the KPI | | | | | | The proportion of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: | | | Value of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU: | | | For non-financial undertakings: | | | For non-financial undertakings: | | | Turnover-based: % | 0.5% | | Turnover-based: [EUR million] | 47 | | Capital expenditures-based: % | 0.9% | | Capital expenditures-based: [EUR million] | 74 | | For financial undertakings: | | | For financial undertakings: | | | Turnover-based: % | 0.9% | | Turnover-based: [EUR million] | 78 | | Capital expenditures-based: % | 1.2% | | Capital expenditures-based: [EUR million] | 103 | | The proportion of the insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned: | | | Value of insurance or reinsurance undertaking’s investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned: | | | Turnover-based: % | \* | | Turnover-based: [EUR million] | \* | | Capital expenditures-based: % | \* | | Capital expenditures-based: [EUR million] | \* | | The proportion of exposures to other counterparties and assets over total assets covered by the KPI: | | | Value of taxonomy-aligned exposures to other counterparties: | | | Turnover-based: % | 0% | | Turnover-based: [EUR million] | 0% | | Capital expenditures-based: % | 0% | | Capital expenditures-based: [EUR million] | 0% | | Breakdown of the numerator of the KPI per environmental objective | | | | | | Taxonomy-aligned activities –: | | | | | | (1) Climate change mitigation | Turnover: 1.4% | | Transitional activities turnover: A% | 0.0% | | | Transitional activities capex: A% | 0.1% | | CapEx: 2.0% | | Enabling activities turnover: B% | 0.7% | | | Enabling activities capex: B% | 0.7% | | (2) Climate change adaptation | Turnover: —% | | Enabling activities turnover: A% | 0.0% | | CapEx: —% | | Enabling activities capex: B% | 0.0% | \* The value of these investments is 89M€ (1%) turnover-based and 125€ (1,4%) CapEx based. The calculation is based on the proportion of these investments with respect to the total portfolio. ![]() 121 Only assets under management from asset managers are included. 122 For presentation purposes, the breakdowns relating to the degree of portfolio alignment with the objectives of Biodiversity, Circular Economy, Pollution Prevention and Control, and Water and Marine Resources are not included in these templates, as they are not material in the context of the Taxonomy disclosures, given that their impact on the GAR ratio is residual (eligibility below 1.30% and alignment below 0.02% in all cases). Annual report 2025186 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 7. Template: KPI for Asset Managers. 121 - 2025 122 | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Standard template for the disclosure required under Article 8 of Regulation (EU) 2020/852 (asset managers) | | | | | | The weighted average value of all the investments that are directed at funding, or are associated with Taxonomy-aligned economic activities relative to the value of total assets covered by the KPI, with following weights for investments in undertakings per below: | | | The weighted average value of all the investments that are directed at funding, or are associated with taxonomy-aligned economic activities, with following weights for investments in undertakings per below: | | | Turnover-based: % | 2.4% | | Turnover-based: [EUR million] | 3,466 | | CapEx—based: % | 3.5% | | CapEx-based: [EUR million] | 4,954 | | The percentage of assets covered by the KPI relative to total investments (total AuM). Excluding investments in sovereign entities. | | | The monetary value of assets covered by the KPI. Excluding investments in sovereign entities. | | | Coverage ratio: % | 65.00% | | Coverage: [EUR million] | 142,164 | | Additional, complementary disclosures: breakdown of denominator of the KPI | | | | | | The percentage of derivatives relative to total assets covered by the KPI. | | | The value in EUR millions of derivatives:. | | | X % | 0.90% | | [EUR million] | 1,336 | | The proportion of exposures to financial and non-financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/ EU over total assets covered by the KPI: | | | Value of exposures to financial and non-financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/EU: | | | For non-financial undertakings: | 9.3% | | For non-financial undertakings: [EUR million] | 13,247 | | For financial undertakings: | 15.2% | | For financial undertakings: [EUR million] | 21,664 | | The proportion of exposures to financial and non-financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: | | | Value of exposures to financial and non-financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU: | | | For non-financial undertakings: | 16.4% | | For non-financial undertakings: [EUR million] | 23,314 | | For financial undertakings: | 13.6% | | For financial undertakings: [EUR million] | 19,393 | | The proportion of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: | | | Value of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU: | | | For non-financial undertakings: | 11.2% | | For non-financial undertakings: [EUR million] | 15,930 | | For financial undertakings: | 33.3% | | For financial undertakings: [EUR million] | 47,278 | | The proportion of exposures to other counterparties over total assets covered by the KPI: | | | Value of exposures to other counterparties: | | | X % | 0.0% | | [EUR million] | 0 | | The value of all the investments that are funding economic activities that are not Taxonomy-eligible relative to the value of total assets covered by the KPI: | | | Value of all the investments that are funding economic activities that are not Taxonomy-eligible: | | | X % | 87.3% | | [EUR million] | 124,068 | | The value of all the investments that are funding taxonomy-eligible economic activities, but not taxonomy- aligned relative to the value of total assets covered by the KPI: | | | Value of all the investments that are funding Taxonomy- eligible economic activities, but not taxonomy- aligned: | | | X % | 10.3% | | [EUR million] | 14,630 | Annual report 2025187 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Additional, complementary disclosures: breakdown of numerator of the KPI | | | | | | The proportion of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: | | | Value of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU: | | | For non-financial undertakings: | | | For non-financial undertakings: | | | Turnover-based: % | 1.0% | | Turnover-based: [EUR million] | 1,468 | | Capital expenditures-based: % | 1.9% | | Capital expenditures-based: [EUR million] | 2,665 | | For financial undertakings: | | | For financial undertakings: | | | Turnover-based: % | 1.4% | | Turnover-based: [EUR million] | 1,998 | | Capital expenditures-based: % | 1.6% | | Capital expenditures-based: [EUR million] | 2,289 | | The proportion of exposures to other counterparties and assets over total assets covered by the KPI: | | | Value of taxonomy-aligned exposures to other counterparties: | | | Turnover-based: % | 0.0% | | Turnover-based: [EUR million] | 0 | | Capital expenditures-based: % | 0.0% | | Capital expenditures-based: [EUR million] | 0 | | Breakdown of the numerator of the KPI per environmental objective | | | | | | Taxonomy-aligned activities –: | | | | | | (1) Climate change mitigation | Turnover:  2.4% | | Transitional activities turnover: A% | 0.10% | | | Transitional activities capex: A% | 0.20% | | CapEx: 3.4% | | Enabling activities turnover: B% | 1.10% | | | Enabling activities capex: B% | 1.50% | | (2) Climate change adaptation | Turnover:  —% | | Enabling activities turnover: A% | 0.00% | | CapEx: 0,1% | | Enabling activities capex: B% | 0.00% | 123 Only assets under management from asset managers are included. Annual report 2025188 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 7. Template: KPI for Asset Managers 123. - 2024 | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Standard template for the disclosure required under Article 8 of Regulation (EU) 2020/852 (asset managers) | | | | | | The weighted average value of all the investments that are directed at funding, or are associated with Taxonomy-aligned economic activities relative to the value of total assets covered by the KPI, with following weights for investments in undertakings per below: | | | The weighted average value of all the investments that are directed at funding, or are associated with taxonomy-aligned economic activities, with following weights for investments in undertakings per below: | | | Turnover-based: % | 1.6% | | Turnover-based: [EUR million] | 2,003 | | CapEx—based: % | 2.6% | | CapEx-based: [EUR million] | 3,278 | | The percentage of assets covered by the KPI relative to total investments (total AuM). Excluding investments in sovereign entities. | | | The monetary value of assets covered by the KPI. Excluding investments in sovereign entities. | | | Coverage ratio: % | 62.10% | | Coverage: [EUR million] | 125,892 | | Additional, complementary disclosures: breakdown of denominator of the KPI | | | | | | The percentage of derivatives relative to total assets covered by the KPI. | | | The value in EUR millions of derivatives:. | | | X % | 0.00% | | [EUR million] | 37 | | The proportion of exposures to financial and non-financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/ EU over total assets covered by the KPI: | | | Value of exposures to financial and non-financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/EU: | | | For non-financial undertakings: | 15.8% | | For non-financial undertakings: [EUR million] | 19,863 | | For financial undertakings: | 18.7% | | For financial undertakings: [EUR million] | 23,489 | | The proportion of exposures to financial and non-financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: | | | Value of exposures to financial and non-financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU: | | | For non-financial undertakings: | 9.4% | | For non-financial undertakings: [EUR million] | 11,776 | | For financial undertakings: | 17.7% | | For financial undertakings: [EUR million] | 22,301 | | The proportion of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: | | | Value of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU: | | | For non-financial undertakings: | 9.2% | | For non-financial undertakings: [EUR million] | 11,637 | | For financial undertakings: | 29.1% | | For financial undertakings: [EUR million] | 36,665 | | The proportion of exposures to other counterparties over total assets covered by the KPI: | | | Value of exposures to other counterparties: | | | X % | 0.1% | | [EUR million] | 124 | | The value of all the investments that are funding economic activities that are not Taxonomy-eligible relative to the value of total assets covered by the KPI: | | | Value of all the investments that are funding economic activities that are not Taxonomy-eligible: | | | X % | 89.3% | | [EUR million] | 112,424 | | The value of all the investments that are funding taxonomy-eligible economic activities, but not taxonomy- aligned relative to the value of total assets covered by the KPI: | | | Value of all the investments that are funding Taxonomy- eligible economic activities, but not taxonomy- aligned: | | | X % | 9.1% | | [EUR million] | 11,465 | Annual report 2025189 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Additional, complementary disclosures: breakdown of numerator of the KPI | | | | | | The proportion of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: | | | Value of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU: | | | For non-financial undertakings: | | | For non-financial undertakings: | | | Turnover-based: % | 0.8% | | Turnover-based: [EUR million] | 959 | | Capital expenditures-based: % | 2.9% | | Capital expenditures-based: [EUR million] | 3,609 | | For financial undertakings: | | | For financial undertakings: | | | Turnover-based: % | 0.8% | | Turnover-based: [EUR million] | 1,044 | | Capital expenditures-based: % | 2.3% | | Capital expenditures-based: [EUR million] | 2,947 | | The proportion of exposures to other counterparties and assets over total assets covered by the KPI: | | | Value of taxonomy-aligned exposures to other counterparties: | | | Turnover-based: % | 0.0% | | Turnover-based: [EUR million] | 5 | | Capital expenditures-based: % | 0.0% | | Capital expenditures-based: [EUR million] | 5 | | Breakdown of the numerator of the KPI per environmental objective | | | | | | Taxonomy-aligned activities –: | | | | | | (1) Climate change mitigation | Turnover:  1.5% | | Transitional activities turnover: A% | 0.10% | | | Transitional activities capex: A% | 0.70% | | CapEx: 2.6% | | Enabling activities turnover: B% | 0.10% | | | Enabling activities capex: B% | 1.00% | | (2) Climate change adaptation | Turnover:  —% | | Enabling activities turnover: A% | 0.00% | | CapEx: —% | | Enabling activities capex: B% | 0.00% | Annual report 2025190 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 8. Consolidated KPI - 2025 | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | KPI per Business segment | | | | | | Revenue | Proportion of total group revenue | KPI turnover based | KPI CapEx based | KPI turnover based weighted | KPI CapEx based weighted | | Asset management | 1,309 | 2.2% | 2.4% | 3.5% | 0.1% | 0.1% | | Banking activities | 57,894 | 95.7% | 3.2% | 3.4% | 3.0% | 3.2% | | Investment firms | 685 | 1.1% | 0.0% | 0.0% | 0.0% | 0.0% | | Insurance undertakings | 638 | 1.1% | 1.7% | 2.1% | 0.0% | 0.0% | | Total | 60,527 | 100.0% | | | | | | Average KPI | | | | | 3.1% | 3.3% | 8. Consolidated KPI - 2024 | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | KPI per Business segment | | | | | | Revenue | Proportion of total group revenue | KPI turnover based | KPI CapEx based | KPI turnover based weighted | KPI CapEx based weighted | | Asset management | 1,258 | 2.1% | 1.6% | 2.6% | 0.0% | 0.1% | | Banking activities | 57,526 | 97.0% | 3.0% | 3.3% | 2.9% | 3.2% | | Investment firms | 111 | 0.2% | 0.0% | 0.0% | 0.0% | 0.0% | | Insurance undertakings | 440 | 0.7% | 1.4% | 2.1% | 0.0% | 0.0% | | Total | 59,335 | 100.0% | | | | | | Average KPI | | | | | 3.0% | 3.2% | Annual report 2025191 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 9. Nuclear and fossil gas related activities - 2025 (credit institution) | | | | | --- | --- | --- | | | | | | | Nuclear energy related activities | | | 1 | The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. | YES | | 2 | The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. | YES | | 3 | The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. | YES | | | Fossil gas related activities | | | 4 | The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. | YES | | 5 | The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. | YES | | 6 | The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. | YES | Annual report 2025192 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 9. Nuclear and fossil gas related activities: Taxonomy-aligned economic activities (denominator) - Capex - 2025 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | Nuclear energy related activities | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 2 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 20 | 0.0% | 20 | 0.0% | 0 | 0.0% | | 3 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 59 | 0.0% | 59 | 0.0% | 0 | 0.0% | | 4 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 1 | 0.0% | 1 | 0.0% | 0 | 0.0% | | 5 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 6 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 45,492 | 3.3% | 45,459 | 3.3% | 33 | 0.0% | | 8 | Total applicable KPI | 45,573 | 3.4% | 45,540 | 3.4% | 33 | 0.0% | | | | --- | | | | Note 1: The denominator of the applicable KPI is 1.359.362.227.454 euros | 9. Nuclear and fossil gas related activities: Taxonomy-aligned economic activities (denominator) - Turnover - 2025 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | Nuclear energy related activities | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 2 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 1 | 0.0% | 1 | 0.0% | 0 | 0.0% | | 3 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 88 | 0.0% | 88 | 0.0% | 0 | 0.0% | | 4 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 5 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 6 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 43,039 | 3.2% | 42,995 | 3.2% | 44 | 0.0% | | 8 | Total applicable KPI | 43,129 | 3.2% | 43,085 | 3.2% | 44 | 0.0% | | | | --- | | | | Note 1: The denominator of the applicable KPI is 1.359.362.227.454 euros | Annual report 2025193 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 9. Nuclear and fossil gas related activities: Taxonomy-aligned economic activities (numerator) - Capex - 2025 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | Nuclear energy related activities | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 2 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 20 | 0.0% | 20 | 0.0% | 0 | 0.0% | | 3 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 59 | 0.1% | 59 | 0.1% | 0 | 0.0% | | 4 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 1 | 0.0% | 1 | 0.0% | 0 | 0.0% | | 5 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 6 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI | 45,492 | 99.8% | 45,459 | 99.8% | 33 | 0.1% | | 8 | Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI | 45,573 | 100.0% | 45,540 | 99.9% | 33 | 0.1% | 9. Nuclear and fossil gas related activities: Taxonomy-aligned economic activities (numerator) - Turnover - 2025 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | Nuclear energy related activities | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 2 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 1 | 0.0% | 1 | 0.0% | 0 | 0.0% | | 3 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 88 | 0.2% | 88 | 0.2% | 0 | 0.0% | | 4 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 5 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 6 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI | 43,039 | 99.8% | 42,995 | 99.7% | 44 | 0.1% | | 8 | Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI | 43,129 | 100.0% | 43,085 | 99.9% | 44 | 0.1% | Annual report 2025194 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 9. Nuclear and fossil gas related activities: Taxonomy-eligible but not taxonomy-aligned economic activities - Capex- 2025 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | Nuclear energy related activities | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 2 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 3 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 4 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 126 | 0.0% | 126 | 0.0% | 0 | 0.0% | | 5 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 16 | 0.0% | 16 | 0.0% | 0 | 0.0% | | 6 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 1 | 0.0% | 1 | 0.0% | 0 | 0.0% | | 7 | Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 379,724 | 27.9% | 379685 | 27.9% | 39 | 0.0% | | 8 | Total amount and proportion of taxonomy eligible but not taxonomy- aligned economic activities in the denominator of the applicable KPI | 379,866 | 27.9% | 379827 | 27.9% | 39 | 0.0% | 9. Nuclear and fossil gas related activities: Taxonomy-eligible but not taxonomy-aligned economic activities -Turnover- 2025 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | Nuclear energy related activities | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 2 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 3 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 69 | 0.0% | 69 | 0.0% | 0 | 0.0% | | 4 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 480 | 0.0% | 480 | 0.0% | 0 | 0.0% | | 5 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 32 | 0.0% | 32 | 0.0% | 0 | 0.0% | | 6 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 1 | 0.0% | 1 | 0.0% | 0 | 0.0% | | 7 | Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 380,009 | 28.0% | 379,676 | 27.9% | 333 | 0.0% | | 8 | Total amount and proportion of taxonomy eligible but not taxonomy- aligned economic activities in the denominator of the applicable KPI | 380,591 | 28.0% | 380,258 | 28.0% | 333 | 0.0% | Annual report 2025195 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 9. Nuclear and fossil gas related activities: Taxonomy non-eligible economic activities - Capex- 2025 | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | | Amount | % | | 1 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | | 2 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | | 3 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | | 4 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | | 5 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | | 6 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | | 7 | Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 933,923 | 68.7% | | 8 | Total amount and proportion of taxonomy eligible but not taxonomy- aligned economic activities in the denominator of the applicable KPI | 933,923 | 68.7% | 9. Nuclear and fossil gas related activities: Taxonomy non-eligible economic activities - Turnover- 2025 | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | | Amount | % | | 1 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | | 2 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | | 3 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | | 4 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | | 5 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | | 6 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | | 7 | Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 935,643 | 68.8% | | 8 | Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI | 935,643 | 68.8% | Annual report 2025196 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 9. Nuclear and fossil gas related activities - 2024 (credit institution) | | | | | --- | --- | --- | | | | | | | Nuclear energy related activities | | | 1 | The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. | YES | | 2 | The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. | YES | | 3 | The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. | YES | | | Fossil gas related activities | | | 4 | The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. | YES | | 5 | The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. | YES | | 6 | The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. | YES | Annual report 2025197 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 9. Nuclear and fossil gas related activities: Taxonomy-aligned economic activities (denominator) - Capex - 2024 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | Nuclear energy related activities | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 2 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 4 | 0.0% | 4 | 0.0% | 0 | 0.0% | | 3 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 28 | 0.0% | 28 | 0.0% | 0 | 0.0% | | 4 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 1 | 0.0% | 1 | 0.0% | 0 | 0.0% | | 5 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 6 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 42,800 | 3.3% | 42,784 | 3.3% | 17 | 0.0% | | 8 | Total applicable KPI | 42,834 | 3.3% | 42,818 | 3.3% | 17 | 0.0% | | | | --- | | | | Note 1: The denominator of the  applicable KPI is 1.306.541.919.505 euros | 9. Nuclear and fossil gas related activities: Taxonomy-aligned economic activities (denominator) - Turnover - 2024 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | Nuclear energy related activities | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 2 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 3 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 36 | 0.0% | 36 | 0.0% | 0 | 0.0% | | 4 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 5 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 6 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 39,620 | 3.0% | 39,578 | 3.0% | 41 | 0.0% | | 8 | Total applicable KPI | 39,656 | 3.0% | 39,615 | 3.0% | 41 | 0.0% | | | | --- | | | | Note 1: The denominator of the  applicable KPI is 1.306.541.919.505 euros | Annual report 2025198 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 9. Nuclear and fossil gas related activities: Taxonomy-aligned economic activities (numerator) - Capex - 2024 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | Nuclear energy related activities | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 2 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 4 | 0.0% | 4 | 0.0% | 0 | 0.0% | | 3 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 28 | 0.1% | 28 | 0.1% | 0 | 0.0% | | 4 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 1 | 0.0% | 1 | 0.0% | 0 | 0.0% | | 5 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 6 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI | 42,800 | 99.9% | 42,784 | 99.9% | 17 | 0.0% | | 8 | Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI | 42,834 | 100.0% | 42,818 | 100.0% | 17 | 0.0% | 9. Nuclear and fossil gas related activities: Taxonomy-aligned economic activities (numerator) - Turnover - 2024 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | Nuclear energy related activities | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 2 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 3 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 36 | 0.1% | 36 | 0.1% | 0 | 0.0% | | 4 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 5 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 6 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI | 39,620 | 99.9% | 39,578 | 99.8% | 41 | 0.1% | | 8 | Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI | 39,656 | 100.0% | 39,615 | 99.9% | 41 | 0.1% | Annual report 2025199 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 9. Nuclear and fossil gas related activities: Taxonomy-eligible but not taxonomy-aligned economic activities - Capex- 2024 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | Nuclear energy related activities | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 2 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 3 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 17 | 0.0% | 17 | 0.0% | 0 | 0.0% | | 4 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 80 | 0.0% | 80 | 0.0% | 0 | 0.0% | | 5 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 23 | 0.0% | 23 | 0.0% | 0 | 0.0% | | 6 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 1 | 0.0% | 1 | 0.0% | 0 | 0.0% | | 7 | Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 404,304 | 30.9% | 404220 | 30.9% | 84 | 0.0% | | 8 | Total amount and proportion of taxonomy eligible but not taxonomy- aligned economic activities in the denominator of the applicable KPI | 404,424 | 31.0% | 404340 | 30.9% | 84 | 0.0% | 9. Nuclear and fossil gas related activities: Taxonomy-eligible but not taxonomy-aligned economic activities -Turnover- 2024 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | Nuclear energy related activities | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 2 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 1 | 0.0% | 1 | 0.0% | 0 | 0.0% | | 3 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 70 | 0.0% | 70 | 0.0% | 0 | 0.0% | | 4 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 833 | 0.1% | 833 | 0.1% | 0 | 0.0% | | 5 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 41 | 0.0% | 41 | 0.0% | 0 | 0.0% | | 6 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% | | 7 | Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 403,901 | 30.9% | 403,577 | 30.9% | 324 | 0.0% | | 8 | Total amount and proportion of taxonomy eligible but not taxonomy- aligned economic activities in the denominator of the applicable KPI | 404,846 | 31.0% | 404,523 | 31.0% | 324 | 0.0% | Annual report 2025200 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 9. Nuclear and fossil gas related activities: Taxonomy non-eligible economic activities - Capex- 2024 | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | | Amount | % | | 1 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | | 2 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | | 3 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | | 4 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | | 5 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | | 6 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | | 7 | Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 859,283 | 65.8% | | 8 | Total amount and proportion of taxonomy eligible but not taxonomy- aligned economic activities in the denominator of the applicable KPI | 859,283 | 65.8% | 9. Nuclear and fossil gas related activities: Taxonomy non-eligible economic activities - Turnover- 2024 | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | | Amount | % | | 1 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | | 2 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | | 3 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | | 4 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | | 5 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | | 6 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0.0% | | 7 | Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 862,039 | 66.0% | | 8 | Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI | 862,039 | 66.0% | Annual report 2025201 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 10. Nuclear and fossil gas related activities - 2025 (insurance) | | | | | --- | --- | --- | | | | | | | Nuclear energy related activities | | | 1 | The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. | NO | | 2 | The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. | NO | | 3 | The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. | NO | | | Fossil gas related activities | | | 4 | The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. | YES | | 5 | The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. | YES | | 6 | The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. | NO | 10. Nuclear and fossil gas related activities: Taxonomy-aligned economic activities (denominator) - Capex- 2025 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 2 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 3 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 4 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 5 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 6 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 175.5 | 2.09% | 173.6 | 2.07% | 1.9 | 0.02% | | 8 | Total applicable KPI | 175.5 | 2.09% | 173.6 | 2.07% | 1.9 | 0.02% | Note 1: The denominator of the applicable KPI is 8,388 million euros. 10. Nuclear and fossil gas related activities: #### Taxonomy-aligned economic activities (denominator) - Turnover- 2025 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 2 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 3 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 4 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 5 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 6 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 142.4 | 1.70% | 141.6 | 1.69% | 0.8 | 0.01% | | 8 | Total applicable KPI | 142.4 | 1.70% | 141.6 | 1.69% | 0.8 | 0.01% | Note 1: The denominator of the applicable KPI is 8,388 million euros. Annual report 2025202 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 10. Nuclear and fossil gas related activities: Taxonomy-aligned economic activities (numerator) - Capex- 2025 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 2 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 3 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 4 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 5 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 6 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI | 175.5 | 100.00% | 173.6 | 98.91% | 1.9 | 1.09% | | 8 | Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI | 175.5 | 100.00% | 173.6 | 98.91% | 1.9 | 1.09% | 10. Nuclear and fossil gas related activities: Taxonomy-aligned economic activities (numerator) - Turnover- 2025 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 2 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 3 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 4 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 5 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 6 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI | 142.4 | 100.00% | 141.6 | 99.45% | 0.8 | 0.55% | | 8 | Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI | 142.4 | 100.00% | 141.6 | 99.45% | 0.8 | 0.55% | Annual report 2025203 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 10. Nuclear and fossil gas related activities: Taxonomy-eligible but not taxonomy-aligned economic activities - Capex - 2025 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 2 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 3 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 4 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 5 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 6 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 442.2 | 5.27% | 441.1 | 5.26% | 1.1 | 0.01% | | 8 | Total amount and proportion of taxonomy eligible but not taxonomy- aligned economic activities in the denominator of the applicable KPI | 442.2 | 5.27% | 441.1 | 5.26% | 1.1 | 0.01% | 10. Nuclear and fossil gas related activities: Taxonomy-eligible but not taxonomy-aligned economic activities - Turnover-2025 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 2 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 3 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 4 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.1 | 0.00% | 0.1 | 0.00% | 0.0 | 0.00% | | 5 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 6 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 521.0 | 6.21% | 494.0 | 5.89% | 27.0 | 0.32% | | 8 | Total amount and proportion of taxonomy eligible but not taxonomy- aligned economic activities in the denominator of the applicable KPI | 521.1 | 6.21% | 494.1 | 5.89% | 27.0 | 0.32% | Annual report 2025204 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 10. Nuclear and fossil gas related activities: Taxonomy non-eligible economic activities - Capex- 2025 | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | Nuclear energy related activities | Amount | % | | 1 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | | 0 | | 2 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | | 0 | | 3 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | | 0 | | 4 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | | 0 | | 5 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | | 0 | | 6 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | | 0 | | 7 | Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 7,768.0 | 92.61% | | 8 | Total amount and proportion of taxonomy eligible but not taxonomy- aligned economic activities in the denominator of the applicable KPI | 7,768.0 | 92.61% | 10. Nuclear and fossil gas related activities: Taxonomy non-eligible economic activities - Turnover - 2025 | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | Nuclear energy related activities | Amount | % | | 1 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 2 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 3 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 4 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 5 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 6 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 7,723.0 | 92.08% | | 8 | Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI | 7,723.0 | 92.08% | Annual report 2025205 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 10. Nuclear and fossil gas related activities - 2024 (insurance) | | | | | --- | --- | --- | | | | | | | Nuclear energy related activities | | | 1 | The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. | NO | | 2 | The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. | NO | | 3 | The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. | NO | | | Fossil gas related activities | | | 4 | The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. | YES | | 5 | The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. | YES | | 6 | The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. | NO | 10. Nuclear and fossil gas related activities: Taxonomy-aligned economic activities (denominator) - Capex- 2024 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 2 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 3 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 4 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 5 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 6 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 177.4 | 2.05% | 177.3 | 2.05% | 0.1 | 0.00% | | 8 | Total applicable KPI | 177.4 | 2.05% | 177.3 | 2.05% | 0.1 | 0.00% | Note 1: The denominator of the applicable KPI is 8,654 million euros.. 10. Nuclear and fossil gas related activities: #### Taxonomy-aligned economic activities (denominator) - Turnover- 2024 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 2 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 3 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 4 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 5 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 6 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 125.2 | 1.45% | 124.3 | 1.44% | 0.8 | 0.01% | | 8 | Total applicable KPI | 125.2 | 1.45% | 124.3 | 1.44% | 0.8 | 0.01% | Note 1: The denominator of the applicable KPI is 8,654 million euros.. Annual report 2025206 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 10. Nuclear and fossil gas related activities: Taxonomy-aligned economic activities (numerator) - Capex- 2024 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 2 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 3 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 4 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 5 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 6 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI | 177.4 | 100.00% | 177.3 | 99.94% | 0.1 | 0.06% | | 8 | Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI | 177.4 | 100.00% | 177.3 | 99.94% | 0.1 | 0.06% | 10. Nuclear and fossil gas related activities: Taxonomy-aligned economic activities (numerator) - Turnover- 2024 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 2 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 3 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 4 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 5 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 6 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI | 125.2 | 100.00% | 124.3 | 99.33% | 0.8 | 0.67% | | 8 | Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI | 125.2 | 100.00% | 124.3 | 99.33% | 0.8 | 0.67% | Annual report 2025207 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 10. Nuclear and fossil gas related activities: Taxonomy-eligible but not taxonomy-aligned economic activities - Capex - 2024 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 2 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 3 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 4 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 5 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 6 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 895.8 | 10.35% | 892.8 | 10.32% | 3.0 | 0.03% | | 8 | Total amount and proportion of taxonomy eligible but not taxonomy- aligned economic activities in the denominator of the applicable KPI | 895.9 | 10.35% | 892.8 | 10.32% | 3.0 | 0.03% | 10. Nuclear and fossil gas related activities: Taxonomy-eligible but not taxonomy-aligned economic activities - Turnover-2024 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 2 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 3 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 4 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.1 | 0.00% | 0.1 | 0.00% | 0.0 | 0.00% | | 5 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 6 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 889.4 | 10.28% | 870.0 | 10.05% | 19.5 | 0.22% | | 8 | Total amount and proportion of taxonomy eligible but not taxonomy- aligned economic activities in the denominator of the applicable KPI | 889.5 | 10.28% | 870.1 | 10.05% | 19.5 | 0.22% | Annual report 2025208 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 10. Nuclear and fossil gas related activities: Taxonomy non-eligible economic activities - Capex- 2024 | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | Nuclear energy related activities | Amount | % | | 1 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0 | | 2 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0 | | 3 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0 | | 4 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0 | | 5 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0 | | 6 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0 | 0 | | 7 | Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 7,580.8 | 87.60% | | 8 | Total amount and proportion of taxonomy eligible but not taxonomy- aligned economic activities in the denominator of the applicable KPI | 7,580.8 | 87.60% | 10. Nuclear and fossil gas related activities: Taxonomy non-eligible economic activities - Turnover - 2024 | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | Nuclear energy related activities | Amount | % | | 1 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 2 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 3 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 4 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 5 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 6 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 7,638.6 | 88.27% | | 8 | Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI | 7,638.6 | 88.27% | Annual report 2025209 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 11. Nuclear and fossil gas related activities- 2025 (asset manager) | | | | | --- | --- | --- | | | | | | | Nuclear energy related activities | | | 1 | The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. | YES | | 2 | The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. | YES | | 3 | The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. | YES | | | Fossil gas related activities | | | 4 | The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. | YES | | 5 | The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. | YES | | 6 | The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. | YES | 11. Nuclear and fossil gas related activities: Taxonomy-aligned economic activities (denominator) - Capex- 2025 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 4.6 | 0.00% | 4.6 | 0.00% | 0.0 | 0.00% | | 2 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 1.2 | 0.00% | 1.2 | 0.00% | 0.0 | 0.00% | | 3 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 4 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 5 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.1 | 0.00% | 0.0 | 0.00% | 0.1 | 0.00% | | 6 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 20.4 | 0.01% | 20.4 | 0.01% | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 4,927.7 | 3.47% | 4,798.6 | 3.38% | 129.0 | 0.09% | | 8 | Total applicable KPI | 4,953.9 | 3.48% | 4,824.8 | 3.39% | 129.1 | 0.09% | Note 1: The denominator of the applicable KPI is 142,164 million euros . 11. Nuclear and fossil gas related activities: #### Taxonomy-aligned economic activities (denominator) - Turnover- 2025 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 2 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 1.5 | 0.00% | 1.5 | 0.00% | 0.0 | 0.00% | | 3 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 32.5 | 0.02% | 32.5 | 0.02% | 0.0 | 0.00% | | 4 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 5 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.9 | 0.00% | 0.9 | 0.00% | 0.0 | 0.00% | | 6 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.3 | 0.00% | 0.3 | 0.00% | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 3,431.0 | 2.41% | 3,393.2 | 2.39% | 37.8 | 0.03% | | 8 | Total applicable KPI | 3,466.1 | 2.44% | 3,428.3 | 2.41% | 37.8 | 0.03% | Note 1: The denominator of the applicable KPI is 142,164 million euros. Annual report 2025210 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 11. Nuclear and fossil gas related activities: Taxonomy-aligned economic activities (numerator) - Capex- 2025 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 4.6 | 0.09% | 4.6 | 0.09% | 0.0 | 0.00% | | 2 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 1.2 | 0.02% | 1.2 | 0.02% | 0.0 | 0.00% | | 3 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 4 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 5 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.1 | 0.00% | 0.0 | 0.00% | 0.1 | 0.00% | | 6 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 20.4 | 0.41% | 20.4 | 0.41% | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI | 4,927.7 | 99.47% | 4,798.6 | 96.87% | 129.0 | 2.60% | | 8 | Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI | 4,953.9 | 100.00% | 4,824.8 | 97.39% | 129.1 | 2.61% | 11. Nuclear and fossil gas related activities: Taxonomy-aligned economic activities (numerator) - Turnover- 2025 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 2 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 1.5 | 0.04% | 1.5 | 0.04% | 0.0 | 0.00% | | 3 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 32.5 | 0.94% | 32.5 | 0.94% | 0.0 | 0.00% | | 4 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 5 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.9 | 0.02% | 0.9 | 0.02% | 0.0 | 0.00% | | 6 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.3 | 0.01% | 0.3 | 0.01% | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI | 3,431.0 | 98.99% | 3,393.2 | 97.90% | 37.8 | 1.09% | | 8 | Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI | 3,466.1 | 100.00% | 3,428.3 | 98.91% | 37.8 | 1.09% | Annual report 2025211 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 11. Nuclear and fossil gas related activities: Taxonomy-eligible but not taxonomy-aligned economic activities - Capex- 2025 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 2 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 7.0 | 0.00% | 7.0 | 0.00% | 0.0 | 0.00% | | 3 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 37.0 | 0.03% | 37.0 | 0.03% | 0.0 | 0.00% | | 4 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 5 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 6 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 13,399.0 | 9.42% | 13377.0 | 9.41% | 22.0 | 0.02% | | 8 | Total amount and proportion of taxonomy eligible but not taxonomy- aligned economic activities in the denominator of the applicable KPI | 13,443.0 | 9.46% | 13421.0 | 9.44% | 23.0 | 0.02% | 11. Nuclear and fossil gas related activities: Taxonomy-eligible but not taxonomy-aligned economic activities - Turnover-2025 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 2 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 3 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 34.0 | 0.02% | 34.0 | 0.02% | 0.0 | 0.00% | | 4 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 102.0 | 0.07% | 102.0 | 0.07% | 0.0 | 0.00% | | 5 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 6.0 | 0.00% | 6.0 | 0.00% | 0.0 | 0.00% | | 6 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 15,044.0 | 10.58% | 14,269.0 | 10.04% | 775.0 | 0.55% | | 8 | Total amount and proportion of taxonomy eligible but not taxonomy- aligned economic activities in the denominator of the applicable KPI | 15,187.0 | 10.68% | 14,412.0 | 10.14% | 775.0 | 0.55% | Annual report 2025212 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 11. Nuclear and fossil gas related activities: Taxonomy non-eligible economic activities - Capex- 2025 | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | | Amount | % | | 1 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 2 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 3 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 4 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 5 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 6 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 123,767.0 | 87.06% | | 8 | Total amount and proportion of taxonomy eligible but not taxonomy- aligned economic activities in the denominator of the applicable KPI | 123,767.0 | 87.06% | 11. Nuclear and fossil gas related activities: Taxonomy non-eligible economic activities - Capex- 2025 | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | | Amount | % | | 1 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 2 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 3 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 4 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 5 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 6 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 123,511.0 | 86.88% | | 8 | Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI | 123,511.0 | 86.88% | Annual report 2025213 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 11. Nuclear and fossil gas related activities- 2024 (asset manager) | | | | | --- | --- | --- | | | | | | | Nuclear energy related activities | | | 1 | The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. | YES | | 2 | The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. | YES | | 3 | The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. | YES | | | Fossil gas related activities | | | 4 | The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. | YES | | 5 | The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. | YES | | 6 | The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. | YES | 11. Nuclear and fossil gas related activities: Taxonomy-aligned economic activities (denominator) - Capex- 2024 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 2.6 | 0.00% | 2.6 | 0.00% | 0.0 | 0.00% | | 2 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 2.2 | 0.00% | 2.2 | 0.00% | 0.0 | 0.00% | | 3 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.6 | 0.00% | 0.6 | 0.00% | 0.0 | 0.00% | | 4 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 5 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.1 | 0.00% | 0.0 | 0.00% | 0.1 | 0.00% | | 6 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 16.9 | 0.01% | 16.9 | 0.01% | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 3,255.8 | 2.59% | 3,241.1 | 2.57% | 14.8 | 0.01% | | 8 | Total applicable KPI | 3,278.1 | 2.60% | 3,263.3 | 2.59% | 14.9 | 0.01% | Note 1: The denominator of the applicable KPI is 125,892 million euros. 11. Nuclear and fossil gas related activities: #### Taxonomy-aligned economic activities (denominator) - Turnover- 2024 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 2 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.4 | 0.00% | 0.4 | 0.00% | 0.0 | 0.00% | | 3 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 21.9 | 0.02% | 21.9 | 0.02% | 0.0 | 0.00% | | 4 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 5 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.2 | 0.00% | 0.2 | 0.00% | 0.0 | 0.00% | | 6 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.3 | 0.00% | 0.3 | 0.00% | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 1,980.7 | 1.57% | 1,928.6 | 1.53% | 52.1 | 0.04% | | 8 | Total applicable KPI | 2,003.4 | 1.59% | 1,951.3 | 1.55% | 52.1 | 0.04% | Note 1: The denominator of the applicable KPI is 125,892 million euros. Annual report 2025214 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 11. Nuclear and fossil gas related activities: Taxonomy-aligned economic activities (numerator) - Capex- 2024 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 2.6 | 0.08% | 2.6 | 0.08% | 0.0 | 0.00% | | 2 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 2.2 | 0.07% | 2.2 | 0.07% | 0.0 | 0.00% | | 3 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.6 | 0.02% | 0.6 | 0.02% | 0.0 | 0.00% | | 4 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 5 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.1 | 0.00% | 0.0 | 0.00% | 0.1 | 0.00% | | 6 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 16.9 | 0.51% | 16.9 | 0.51% | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI | 3,255.8 | 99.32% | 3,241.1 | 98.87% | 14.8 | 0.45% | | 8 | Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI | 3,278.1 | 100.00% | 3,263.3 | 99.55% | 14.9 | 0.45% | 11. Nuclear and fossil gas related activities: Taxonomy-aligned economic activities (numerator) - Turnover- 2024 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 2 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.4 | 0.02% | 0.4 | 0.02% | 0.0 | 0.00% | | 3 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 21.9 | 1.09% | 21.9 | 1.09% | 0.0 | 0.00% | | 4 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 5 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.2 | 0.01% | 0.2 | 0.01% | 0.0 | 0.00% | | 6 | Amount and proportion of taxonomy- aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI | 0.3 | 0.01% | 0.3 | 0.01% | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI | 1,980.7 | 98.87% | 1,928.6 | 96.27% | 52.1 | 2.60% | | 8 | Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI | 2,003.4 | 100.00% | 1,951.3 | 97.40% | 52.1 | 2.60% | Annual report 2025215 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 11. Nuclear and fossil gas related activities: Taxonomy-eligible but not taxonomy-aligned economic activities - Capex- 2024 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.1 | 0.00% | 0.1 | 0.00% | 0.0 | 0.00% | | 2 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 4.7 | 0.00% | 4.7 | 0.00% | 0.0 | 0.00% | | 3 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 26.1 | 0.02% | 26.1 | 0.02% | 0.0 | 0.00% | | 4 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 5 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 1.1 | 0.00% | 0.0 | 0.00% | 1.1 | 0.00% | | 6 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.6 | 0.00% | 0.6 | 0.00% | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 10,501.2 | 8.34% | 9883.7 | 7.85% | 617.4 | 0.49% | | 8 | Total amount and proportion of taxonomy eligible but not taxonomy- aligned economic activities in the denominator of the applicable KPI | 10,533.7 | 8.37% | 9915.2 | 7.88% | 618.5 | 0.49% | 11. Nuclear and fossil gas related activities: Taxonomy-eligible but not taxonomy-aligned economic activities - Turnover-2024 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | CCM+CCA | | CCM | | CCA | | | | | Amount | % | Amount | % | Amount | % | | 1 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 2 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | 0.0 | 0.00% | 0.0 | 0.00% | | 3 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 8.2 | 0.01% | 8.2 | 0.01% | 0.0 | 0.00% | | 4 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 111.5 | 0.09% | 111.5 | 0.09% | 0.0 | 0.00% | | 5 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 11.2 | 0.01% | 11.2 | 0.01% | 0.0 | 0.00% | | 6 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.4 | 0.00% | 0.4 | 0.00% | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 10,823.2 | 8.60% | 10,752.4 | 8.54% | 70.8 | 0.06% | | 8 | Total amount and proportion of taxonomy eligible but not taxonomy- aligned economic activities in the denominator of the applicable KPI | 10,954.4 | 8.70% | 10,883.6 | 8.65% | 70.8 | 0.06% | Annual report 2025216 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 11. Nuclear and fossil gas related activities: Taxonomy non-eligible economic activities - Capex- 2024 | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | | Amount | % | | 1 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 2 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 3 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 4 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 5 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 6 | Amount and proportion of taxonomy- eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 112,080.1 | 89.03% | | 8 | Total amount and proportion of taxonomy eligible but not taxonomy- aligned economic activities in the denominator of the applicable KPI | 112,080.1 | 89.03% | 11. Nuclear and fossil gas related activities: Taxonomy non-eligible economic activities - Capex- 2024 | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | | Amount | % | | 1 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 2 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 3 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 4 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 5 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 6 | Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI | 0.0 | 0.00% | | 7 | Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI | 112,934.2 | 89.71% | | 8 | Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI | 112,934.2 | 89.71% | Annual report 2025217 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | SN 7.3 #### Employees | | | | | --- | --- | --- | | | | | | 6. Employees by region A | | | | | Number of employees | | | Region | 2025 | 2024 | | Spain | 34,142 | 34,940 | | Brazil | 52,696 | 57,133 | | Chile | 8,868 | 9,240 | | Poland | 14,219 | 13,846 | | Argentina | 7,778 | 8,100 | | Mexico | 28,578 | 29,768 | | Portugal | 5,354 | 5,316 | | UK | 19,931 | 22,542 | | USA | 10,950 | 11,341 | | Others | 15,887 | 14,527 | | Total | 198,403 | 206,753 | A.At  year end, information from People, Culture & Organization  global platform for harmonized people processes groupwide. Employee data is breakdown according to geographical criteria and cannot be compared to the figures in the 'Economic  and Financial Report' chapter, which follow management criteria. Employees refers to employees hired as described in chapter [3.1. Our](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) [employees.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) Santander Polska’s employees represent 5.5% of the total workforce in 2025. | | | | | --- | --- | --- | | | | | | 7. Employees by gender A | | | | | Number of employees (headcount) | | | Gender | 2025 | 2024 | | Male | 95,129 | 98,377 | | Female | 103,213 | 108,319 | | OtherB | 5 | 6 | | Not declaredC | 56 | 51 | | Total employees | 198,403 | 206,753 | A. Employees at year end. At Santander Group, we record gender as stated on employees’ identity documents (as required by each local administration and in line with the CSRD) and we break it down into four categories: men, women (both available in all countries), plus other and not declared (the latter two accepted only under the regulations of some countries). Santander Polska’s employees represent 5.5% of the total workforce in 2025. B. Additionally, in 12 countries the regulation allows us to voluntarily report gender identity, guaranteeing privacy and equal treatment. Among those employees who have voluntarily reported it, 2.2% identify themselves as non-binary, trans or others. C. ‘Not declared’ refers to employees whose gender data is unavailable in Group systems at the reporting date due to non-disclosure or legal restrictions, in line with applicable data protection laws and voluntary disclosure rules applicable in some jurisdictions. Annual report 2025218 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | 8. Employees by management group and genderA | | | | | | | | | | | | | | Senior executives B | | | | | | | | | | | | | 2025 | | | | | | 2024 | | | | | | | Men | Women | Others | Not declared | Total | | Men | Women | Others | Not declared | Total | | Europe | 918 | 426 | 0 | 0 | 1,344 | | 959 | 443 | 0 | 1 | 1,403 | | North America | 181 | 64 | 0 | 0 | 245 | | 198 | 72 | 0 | 0 | 270 | | South America | 284 | 142 | 0 | 0 | 426 | | 299 | 146 | 0 | 0 | 445 | | Group total | 1,383 | 632 | 0 | 0 | 2,015 | | 1,456 | 661 | 0 | 1 | 2,118 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Other executives C | | | | | | | | | | | | | 2025 | | | | | | 2024 | | | | | | | Men | Women | Others | Not declared | Total | | Men | Women | Others | Not declared | Total | | Europe | 8,778 | 5,052 | 0 | 10 | 13,840 | | 8,850 | 5,096 | 1 | 6 | 13,953 | | North America | 3,859 | 2,630 | 0 | 4 | 6,493 | | 3,881 | 2,622 | 0 | 3 | 6,506 | | South America | 4,678 | 3,398 | 0 | 1 | 8,077 | | 3,982 | 2,996 | 0 | 1 | 6,979 | | Group total | 17,315 | 11,080 | 0 | 15 | 28,410 | | 16,713 | 10,714 | 1 | 10 | 27,438 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Other employees | | | | | | | | | | | | | 2025 | | | | | | 2024 | | | | | | | Men | Women | Others | Not declared | Total | | Men | Women | Others | Not declared | Total | | Europe | 31,404 | 37,094 | 3 | 39 | 68,540 | | 32,654 | 39,201 | 3 | 37 | 71,895 | | North America | 14,555 | 18,517 | 2 | 1 | 33,075 | | 15,047 | 19,571 | 2 | 3 | 34,623 | | South America | 30,472 | 35,890 | 0 | 1 | 66,363 | | 32,507 | 38,172 | 0 | 0 | 70,679 | | Group total | 76,431 | 91,501 | 5 | 41 | 167,978 | | 80,208 | 96,944 | 5 | 40 | 177,197 | A. At year end. In this and other tables, the units and representative offices in Asia, totalling 425 employees, are counted under Europe. B. Senior Executives includes: Senior Executive VP. Executive VP and VP. C. Other Executives includes Directors, Mangers, Experts and Branch Managers. | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | 9. Employees by age bracketA | | | | | | | | | | | | | | | | | | | Number and % of total | | | | | | | | | | | | | | | | | | | | 2025 | | | | | | | | | 2024 | | | | | | | | | | aged < 30 | | | aged 30 - 50 | | | age over 50 | | | aged < 30 | | | aged 30 - 50 | | | age over 50 | | | Europe | 10,765 | 12.86% | | 51,882 | 61.97% | | 21,077 | 25.17% | | 11,842 | 13.57% | | 54,262 | 62.19% | | 21,147 | 24.24% | | North America | 9,457 | 23.75% | | 24,783 | 62.25% | | 5,573 | 14.00% | | 10,485 | 25.33% | | 25,239 | 60.97% | | 5,675 | 13.71% | | South America | 19,503 | 26.05% | | 48,107 | 64.26% | | 7,256 | 9.69% | | 22,372 | 28.64% | | 49,183 | 62.97% | | 6,548 | 8.38% | | Group total | 39,725 | 20.02% | | 124,772 | 62.89% | | 33,906 | 17.09% | | 44,699 | 21.62% | | 128,684 | 62.24% | | 33,370 | 16.14% | A.At year end. Annual report 2025219 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | 10. Employees by employment contract A | | | | | | | | | | | | | | 2025 | | | | | | 2024 | | | | | | | Men | Women | Other | Not declared | Total | | Men | Women | Other | Not declared | Total | | Number of employees | 95,129 | 103,213 | 5 | 56 | 198,403 | | 98,377 | 108,319 | 6 | 51 | 206,753 | | Number of permanent employees | 93,290 | 100,891 | 4 | 53 | 194,238 | | 96,541 | 105,942 | 6 | 13 | 202,502 | | Number of temporary employees | 1,839 | 2,322 | 1 | 3 | 4,165 | | 1,836 | 2,377 | 0 | 38 | 4,251 | | Number of full-time employees | 94,060 | 98,121 | 4 | 56 | 192,241 | | 97,163 | 102,740 | 5 | 50 | 199,958 | | Number of part-time employees | 1,069 | 5,092 | 1 | 0 | 6,162 | | 1,214 | 5,579 | 1 | 1 | 6,795 | | Number of non- guaranteed hours employees | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 | A. At year end 98% of employees in Santander have a permanent employment contract and 97% have full-time contract, as in 2024. For additional definitions see 7. Employees by gender. | | | | | | --- | --- | --- | --- | | | | | | | 11. Collective bargaining coverage and social dialogueA | | | | | | | | | | | Collective Bargaining Coverage | | Social dialogue | | Coverage Rate | Employees – EEA (European Economic Area) (for countries with >50 empl. representing >10% total empl) | Employees – Non-EEA (estimate for regions with >50 empl. representing >10% total empl) | Workplace representation (EEA only) (for countries with >50 empl. representing >10% total empl) | | 0-19% | Poland | United States | | | 20-39% | | Mexico | | | 40-59% | | | | | 60-79% | | | | | 80-100% | Portugal and Spain | Argentina, Brazil, Chile and  United Kingdom | Spain, Poland and Portugal | A. Percentage of employees covered by collective agreement, as defined by CSRD. The collective bargaining and social dialogue figures remain as in 2024. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | 12. Turnover by region A,B | | | | | | | | 2025 | | | 2024 | | | | Total | Turnover ratio C | | Total | Turnover ratio | | Europe | 10,326 | 12.08% | | 10,464 | 11.77% | | North America | 9,176 | 22.55% | | 9,905 | 23.38% | | South America | 20,112 | 25.86% | | 19,726 | 25.33% | | Group total | 39,614 | 19.42% | | 40,095 | 19.17% | A. Employees who ended definitely their employment relation with Santander entities through 2025, it does not include temporary leave or transfer between Santander companies. Information from People, Culture & Organization global platform used harmonized people processes groupwide. B. The total number of terminated employees was 1% below than last year, the turnover rate remained stable compared to the previous year, 53.7% of those laid off are women, in line with the distribution of our workforce. The total number of employees leaving Santander Polska in 2025 represents 3.7%. C. Turnover rate is calculated over average headcount of the period. Annual report 2025220 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | 13. Average remuneration by management group, gender, and age bracket A | | | | | | | | | | | | | | 2025 | | | | | | 2024 | | | | | | | Women | Men | OtherB | Not declaredB | Total C | | Women | Men | OtherB | Not declaredB | Total C | | Gender | 45,836 | 73,357 | - | - | 58,984 | | 41,822 | 65,625 | - | - | 53,131 | | | Senior executives | Other executives | Other employees | | Total | | Senior executives | Other executives | Other employees | | Total | | Management group | 598,760 | 144,997 | 38,933 | | 58,984 | | 524,748 | 129,847 | 36,834 | - | 53,131 | | | <30 | 30-50 | >50 | | Total | | <30 | 30-50 | >50 | | Total | | Age bracket | 25,179 | 59,225 | 96,488 | | 58,984 | | 23,329 | 53,353 | 88,044 | - | 53,131 | A. It includes gross annual salary and comparable supplements, pension schemes and variable remuneration. B. The categories requested by CSRD, by gender and age groups have been used. Groups with less than 50 employees (others, not declared) are not included because they are not statistically relevant and to avoid statistically erroneous conclusions. C. Our employees’ average remuneration increased by 11%. This variation is not comparable with 2024 due to staff turnover (hires, departures and promotions) and movements in relative exchange rates. The exchange rates required by the European Central Bank for regulatory remuneration reporting are applied. | | | | | --- | --- | --- | | | | | | 14. Remuneration ratios | | | | | 2025 | 2024 | | Hourly GPG ratio (average) | 35% | 36% | | GPG ratio (median) A | 26% | 26% | | EPG ratio | <1 | c. 0 | | Remuneration ratio B | 361.9 | 367.1 | A. GPG Ratio (median) includes annual base salary and variable remuneration paid in the year. B.Ratio of the annual remuneration of the highest-paid person performing executive functions (salary, pension plan contributions and variable remuneration) divided by the median annual remuneration of the remaining employees (excluding the highest-paid person). | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 15. Average remuneration of senior management (with variable remuneration not linked to long-term objectives) | | | | | | | | | Thousand euros | 2025 | | | | 2024 | | | | | Men | Women | Total | | Men | Women | Total | | Executive directors | 9,489 | 11,977 | 10,733 | | 9,137 | 12,127 | 10,632 | | Non-executive directors | 347 | 357 | 350 | | 285 | 356 | 309 | | Senior management A | 4,135 | 1,917 | 3,839 | | 3,898 | 1,380 | 3,538 | A. Members of senior management at year-end. This includes the non-executive directors who served on the board of directors during the year. Where there have been changes in its composition, both outgoing and incoming directors have been taken into account, as well as the remuneration received by each. | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 16. Average remuneration of senior management linked to long-term objectives (fair value) | | | | | | | | | Thousand euros | 2025 | | | | 2024 | | | | | Men | Women | Total | | Men | Women | Total | | Executive directors | 1,938 | 2,804 | 2,371 | | 1,611 | 2,332 | 1,972 | | Senior management | 660 | 231 | 603 | | 553 | 170 | 498 | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 17. Senior management compositionA | | | | | | | | | Number | 2025 | | | | 2024 | | | | | Men | Women | Total | | Men | Women | Total | | Executive directors | 1 | 1 | 2 | | 1 | 1 | 2 | | Non-executive directors | 8 | 5 | 13 | | 10 | 5 | 15 | | Senior management | 13 | 2 | 15 | | 12 | 2 | 14 | A.This includes the non-executive directors who served on the board of directors during the year. Where there have been changes in its composition, both outgoing and incoming directors have been taken into account. Members of the senior management at the end of the year. Annual report 2025221 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | 18. Training | | | | | 2025 | 2024 | | Total hours of training | 5,075,133 | 5,286,317 | | % employees trained A | 94.6 | 94.4 | | Total attendees B | 7,507,232 | 6,925,442 | | Hours of training per employee C | 24.9 | 25.3 | A. Calculation based on year-end headcount. The total number of training hours at Santander Polska in 2025 represents 5.5%. B. Training courses completed by our employees during 2025 (8% higher vs. 2024). C. Calculation based on average headcount during the year. 3.3 days of learning. Women completed an average of 25.7 hours and men 23.9 hours. | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | 19. Hours of training by gender and management groupA | | | | | | | | | | | | | Gender | 2025 | | | | | | 2024 | | | | | | Men | Women | Others | Not declared | Total | | Men | Women | Others | Not declared | Total | | 2,325,003 | 2,739,434 | 150 | 10,546 | 5,075,133 | | 2,413,371 | 2,872,035 | 111 | 800 | 5,286,317 | | Management level | Senior executive | Other executive | Other employees | | Total | | Senior executive | Other executive | Other employees | | Total | | 44,122 | 666,259 | 4,364,752 | - | 5,075,133 | | 52,476 | 857,065 | 4,376,775 | - | 5,286,317 | A. The total training hours completed by our employees were 4% lower than in 2024, although the total number of training sessions completed was higher, driven by the digitalisation and optimisation of courses, as well as changes in our workforce. The total number of training hours at Santander Polska in 2025 represents 5.5%. | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 20. Occupational health and safety A,H | | | | | | | | | | 2025 | | | | 2024 | | | | | Men | Women | Total | | Men | Women | Total | | Number of fatal occupational accidents or work-related illness | 0 | 0 | 0 | | 0 | 0 | 0 | | Work-related illness B | 6 | 16 | 22 | | 1 | 2 | 3 | | Total number of accidentsC | 166 | 467 | 633 | | 317 | 633 | 950 | | Work-related accident rate (CSRD criterion, equivalent to the frequency rate of Law 11/2018) D | 0.61 | 1.58 | 1.12 | | 1.15 | 2.08 | 1.64 | | Total number of days of absence due to accidents E | 6,398 | 21,360 | 27,758 | | 12,617 | 24,094 | 36,711 | | Accident rateF | 0.02 | 0.05 | 0.04 | | 0.03 | 0.06 | 0.05 | | Severity rate G | 0.02 | 0.07 | 0.05 | | 0.05 | 0.08 | 0.06 | A. As in the rest of this chapter, we only include information about our employees. B. Information is reported for the entire Santander Group in line with local occupational disease regulations where these are regulated nationally and/or for specific jobs. These events are recorded once the occupational cause has been confirmed following the relevant specialised investigation by the occupational health experts required under each jurisdiction. In Brazil, in line with local practice, external judicial rulings are not included. C. We report occupational injuries that can be documented in 2025, including accidents while commuting. We standardized criteria, processes and systems across our footprint to calculate leave on medical grounds in every market. Banco Santander only considers occupational accidents and illnesses that, following expert review, are recognized as work-related and reported to official bodies (e.g. in Brazil, through a comunicação de acidente de trabalho — CAT, or work-related accident notice — to the Instituto Nacional do Seguro Social — INSS, National Social Security Institute). In Brazil, this indicator only considers absences due to occupational accident of 15 days or more. In the occupational accident ratios, the United States is excluded because it uses a local system that is not integrated into the Group’s platform; the number of accidents resulting in absence in the United States is not material (1% of the Group total). The total number of accidents at Santander Bank Polska in 2025 represents 7.1%. D. Number of occupational accidents with leave for every 1,000,000 theoretical working hours. E. Includes days of absence due to occupational accidents or occupational diseases resulting in absence, in line with the above definitions. F. Ratio of hours missed due to an occupational accident divided by the total number of theoretical hours worked by employees in the year. G. Days missed due to occupational accident with leave for every 1,000 theoretical working hours. Hours worked are theoretical. H. In addition, in all units our employees have recorded 15.3 million hours of absence due to health reasons (16.4 million hours in 2024). Annual report 2025222 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | SN 7 #### .4 Customers | | | | | | --- | --- | --- | --- | | | | | | | 21. Group customersA | | | | | | 2025 | 2024 | var. | | Europe | 47,080,494 | 46,820,826 | 1% | | Spain | 15,361,751 | 15,307,491 | —% | | United Kingdom | 22,719,618 | 22,541,474 | 1% | | Portugal | 2,970,542 | 2,988,779 | (1)% | | Poland | 6,023,727 | 5,978,671 | 1% | | Others EuropeB | 4,856 | 4,411 | 10% | | South America | 86,303,021 | 80,404,762 | 7% | | Brazil | 73,948,413 | 69,454,776 | 6% | | Chile | 4,608,182 | 4,311,488 | 7% | | Argentina | 5,412,475 | 5,117,205 | 6% | | Others South America C | 2,333,951 | 1,521,293 | 53% | | North America | 26,945,104 | 25,762,219 | 5% | | United StatesD | 4,368,527 | 4,473,683 | (2)% | | México | 22,576,577 | 21,288,536 | 6% | | Digital Consumer Bank | 19,892,525 | 19,549,525 | 2% | | Santander Consumer Bank E | 16,186,185 | 16,953,371 | (5)% | | Santander Digital F | 3,706,340 | 2,596,154 | 43% | | Total | 180,221,144 | 172,537,332 | 4% | A. Figures corresponding to total customers. B. Includes the rest of Private Banking and other CIB Europe. C. Includes Uruguay, Peru and Colombia. In Peru, the increase is driven by the acquisition of CrediScotia Financiera. D. Includes BPI Miami E. SCF includes customers in all European countries, including the UK. F. Increase driven by the growth of the Zinia digital platform. | | | | | | --- | --- | --- | --- | | | | | | | 22. Dialogue by channel | | | | | | 2025 | 2024 | Var .2025/2024 %. | | Branches | | | | | Number of branches A | 7,124 | 8,086 | (11.9)% | | Digital banking B | | | | | Digital customers C (millions) | 63.0 | 59.3 | 6.2% | A.Reduction in the number of branches in line with Group’s strategy. For both the 2025 and 2024 figures, CartaSur points of sale and Argentina’s banking service points (PAB) have been included, while operational points that do not provide customer service to clients in Colombia have been excluded. B. Santander Consumer Finance not included. C.Counts once for customers of both Internet and mobile banking. It excludes Openbank Mexico. Annual report 2025223 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | 23. NPS ranking by country | | | | | 2025 | 2024 | | Argentina | 1 | 2 | | Brazil | 2 | 5 | | Chile | 2 | 1 | | Uruguay | 2 | 1 | | Spain | 3 | 3 | | Poland | 3 | 3 | | Portugal | 3 | 3 | | UK | 5 | 4 | | Mexico | 3 | 3 | | USA | 3 | 6 | NPS to measure customer satisfaction, audited by Stiga/Deloitte. Santander position vs. competitors (Official Peer Group by countries). Key peers by country: Argentina: Galicia, BBVA, ICBC, HSBC, Banco Macro, Banco de la Nación; Brazil: Itaú, CEF, Bradesco, Banco do Brasil, Nubank; Chile: BCI, Banco de Chile, Itaú, Scotiabank, Banco Estado; Uruguay: Brou, Itaú, BBVA, Scotiabank; Spain: ING, Bankinter, BBVA, Caixabank, Sabadell, Unicaja; Poland: ING, Millenium, MBank, Bank Polski, Bank Pekao, BNP Paribas; Portugal: BPI, Millenium BCP, CGD, Novo Banco, Montepio; UK: Nationwide, Barclays, Halifax, NatWest Gr., Lloyds, HSBC, TSB; Mexico: BBVA, Nubank, Scotiabank, Banorte, HSBC, Banamex, Banco Azteca; US: Chase, Capital One, Bank of America, PNC, Wells Fargo, KeyBank, Citizens, Citigroup, TD Bank, M&T Bank, Truist. | | | | | --- | --- | --- | | | | | | 24. Total complaints A | | | | | 2025 | 2024 | | Spain B | 82,650 | 156,460 | | Portugal | 2,857 | 3,588 | | United Kingdom | 32,321 | 30,778 | | Poland | 5,172 | 4,209 | | Brazil B | 285,723 | 226,976 | | Mexico B | 57,258 | 71,082 | | Chile | 11,074 | 10,458 | | Argentina | 5,542 | 6,351 | | US B | 9,102 | 6,256 | | SCF B | 281,081 | 165,478 | | Total | 772,780 | 681,636 | A. Compliance metrics based on group-wide criteria, homogeneous for all geographies.  Include complaints received through formal channels such as the official complaints service (if exists), public or private  consumer organisations and agencies, senior management, customer ombudsmen (if exists), regulator channels. 82.6% of complaints resolved in favour of the Bank. B. Overall positive evolution of formal complaints that remain concentrated in the largest retail business: Brazil, SCF, Spain and Mexico. Excluding the UK specific dealer commissions issue, there has been a year- on-year decrease of 4%. Material improvements in Mexico, mainly in first contact resolution and fraud management, and Spain, following the 2024 Supreme Court ruling on mortgage fees matter. Continued trend of increased complaints generated by Complaints Management Companies / influencers, but with significant majority not upheld (Brazil / USA). SN 7.5 #### Financial inclusion | | | | | --- | --- | --- | | | | | | 25. People financially includedA,B | | | | million people (Accumulated since 2023) | 2025 | 2024 | | Access | 2.9 | 1.9 | | Finance | 3.5 | 2.4 | | Total | 6.3 | 4.3 | A. A new target for people financially included was launched in 2023, which considers access and finance initiatives (the previous target also included financial education). The figures reflect only the new people financially included since 2023 (unique people). B.  The figure of people financially included through Santander Polska in 2025 is 0.5 million. Annual report 2025224 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | 26. Microfinance | | | | million euros / people | 2025 | 2024 | | Total credit disbursed A | 1,258 | 1,270 | | Total microentrepreneurs supported | 1.8 | 1.3 | A. The increase in microentrepreneurs supported is mainly due to the bank's objective to expand its microfinance programmes in Latin America. SN 7.6 #### Community support 27 . Community Support | | | | | --- | --- | --- | | | | | | | | | | million euros | 2025 | 2024 | | Support for higher education, employability, and entrepreneurship | 102.1 | 103.8 | | Other local initiatives | 61.7 | 62.5 | | Total | 163.7 | 166.4 | 28. People and organizations helped | | | | | --- | --- | --- | | | | | | 28.1 Through Santander UniversitiesA | | | | | 2025 | 2024 | | Higher education B | 1,773,549 | 34,062 | | Employability C | 2,829,483 | 2,078,051 | | EntrepreneurshipD | 59,569 | 52,570 | | Total E | 4,626,147 | 2,164,683 | A. The scope of reporting on people and businesses supported has been broadened in 2025 to include not only beneficiaries within the impact perimeter but also those outside it, in line with the methodology for Calculating People Supported under Santander Universities, updated this year. Universities helped are included B. The increase in the number of people supported in education is due to  Campus Digital. C. The number of people enrolled in unlimited-access programmes to enhance their employability continues to increase significantly. D. In 2025, open-access training programmes (with unlimited places) were launched to support entrepreneurship training. E. The sum of the strategic pillars exceeds the total figure, as duplicates are removed for individuals supported in both education and employability. | | | | | --- | --- | --- | | | | | | 28.2 Through other local initiativesA,B | | | | | 2025 | 2024 | | Education, Employability and Entrepreneurship | 707,387 | | | Financial education and Vulnerable people | 3,886,777 | - | | Culture and Institutional activities | 353,481 | - | | Other local specific needs | 278,656 | - | | Total | 5,226,301 | - | A. 2025 data is not comparable with previous years due to changes in the methodology and increase in the scope of reporting. B. The figure of people and organizations helped through Santander Polska in 2025 is 1.1 million. Annual report 2025225 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | SN 7.7 #### Tax contribution We pay taxes in the jurisdictions where we earn a profit. Thus, the profits obtained, and the taxes accrued and paid, correspond to the countries where we operate. For every EUR 100 in total income, the Group pays EUR 35 in taxes, including EUR 15 in taxes paid directly by Santander and EUR 20 in taxes collected from third parties. The taxes Santander pays directly (see table below) include non- recoverable value added tax (VAT), employers' social security contributions, charges levied on banks and financial transactions in Spain, the UK, Poland, Portugal, Brazil and Argentina, and other taxes. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | 29. Total taxes paid | | | | | | | EUR million | | | | | | | 2025 | | | | | | | Jurisdiction | Corporate income tax A | Other taxes paid | Total own taxes paid B | Third-party taxes C | Total contribution | | Spain | 792 | 1,236 | 2,028 | 2,155 | 4,183 | | UK | 169 | 521 | 690 | 623 | 1,313 | | Portugal | 437 | 168 | 605 | 340 | 945 | | Poland | 543 | 341 | 884 | 354 | 1,238 | | Germany | 60 | 66 | 126 | 288 | 414 | | Rest of Europe | 665 | 361 | 1,026 | 339 | 1,365 | | Total Europe | 2,666 | 2,693 | 5,359 | 4,099 | 9,458 | | Brazil | 1,204 | 549 | 1,753 | 3,021 | 4,774 | | Mexico | 558 | 567 | 1,125 | 1,210 | 2,335 | | Chile | 35 | 83 | 118 | 320 | 438 | | Argentina | 133 | 464 | 597 | 2,825 | 3,422 | | Uruguay | 29 | 95 | 124 | 95 | 219 | | Rest of Latin America | 51 | 30 | 81 | 20 | 101 | | Total Latin America | 2,010 | 1,788 | 3,798 | 7,491 | 11,289 | | United States | 268 | 111 | 379 | 924 | 1,303 | | Other | 10 | 7 | 17 | 6 | 23 | | TOTAL | 4,954 | 4,599 | 9,553 | 12,520 | 22,073 | A. The Group's income tax for the year 2024 amounted to EUR 5,880 mn B. Total own taxes paid for all these concepts amounted to EUR 9,553 million, broken down as EUR 4,954 million in corporate income tax  (including EUR 392 million in tax on net interest income and fees in Spain), EUR 1,123 million in non-recoverable VAT and other sales taxes, EUR 1,913 million in employer-paid payroll taxes, EUR 90 million in property taxes, EUR 392 million in bank levies and EUR 1,081 million in other taxes. C. Total third-party taxes amounted to EUR 12,520 million, broken down as EUR 3,364 million in salary withholdings and employees' social security contributions, EUR 1,464 million in recoverable VAT, EUR 2,835 million in tax deducted at source on capital, EUR 463 million in non-resident taxes, EUR 377 million in property taxes, EUR 335 million in stamp taxes, EUR 2,253 million in taxes related to the financial activity and EUR 1,429 million in other taxes. Annual report 2025226 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | SN 8. Additional metrics to comply with Spanish Act 11/2018 | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | 1. Average employees, by contract type and gender | | | | | | | | | | | | | | 2025 | | | | | | 2024 | | | | | | | Women | Men | Other | Not declared | Total | | Women | Men | Other | Not declared | Total | | Average employees | 106,539 | 97,284 | 6 | 106 | 203,936 | | 109,762 | 99,257 | 6 | 86 | 209,112 | | Average permanent employees | 104,084 | 95,445 | 5 | 71 | 199,606 | | 107,404 | 97,487 | 6 | 64 | 204,960 | | Average temporary employees | 2,455 | 1,839 | 1 | 35 | 4,330 | | 2,358 | 1,771 | 0 | 22 | 4,151 | | Average full-time employees | 101,123 | 96,099 | 5 | 100 | 197,326 | | 103,837 | 98,023 | 6 | 83 | 201,949 | | Average part-time employees | 5,417 | 1,185 | 1 | 7 | 6,609 | | 5,925 | 1,234 | 0 | 3 | 7,163 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | 2. Average employees, by contract type and age bracket | | | | | | | | | | | | 2025 | | | | | 2024 | | | | | | Under 30 | 30-50 | Over 50 | Total | | Under 30 | 30-50 | Over 50 | Total | | Average employees | 42,540 | 127,674 | 33,722 | 203,936 | | 46,556 | 129,728 | 32,828 | 209,112 | | Average permanent employees | 40,559 | 125,623 | 33,423 | 199,606 | | 44,748 | 127,682 | 32,531 | 204,960 | | Average temporary employees | 1,981 | 2,051 | 299 | 4,330 | | 1,808 | 2,046 | 297 | 4,151 | | Average full-time employees | 41,522 | 123,802 | 32,002 | 197,326 | | 45,412 | 125,537 | 30,999 | 201,949 | | Average part-time employees | 1,018 | 3,871 | 1,720 | 6,609 | | 1,143 | 4,191 | 1,829 | 7,163 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | 3. Average employees, by contract type and management group. | | | | | | | | | | | | 2025 | | | | | 2024 | | | | | | Senior executive | Other executive | Other employees | Total | | Senior executive | Other executive | Other employees | Total | | Average employees | 2,101 | 29,250 | 172,585 | 203,936 | | 2,273 | 30,748 | 176,091 | 209,112 | | Average permanent employees | 2,087 | 29,042 | 168,477 | 199,606 | | 2,253 | 30,291 | 172,416 | 204,960 | | Average temporary employees | 14 | 208 | 4,108 | 4,330 | | 20 | 457 | 3,674 | 4,151 | | Average full-time employees | 2,091 | 28,968 | 166,267 | 197,326 | | 2,263 | 30,234 | 169,452 | 201,949 | | Average part-time employees | 9 | 281 | 6,318 | 6,609 | | 10 | 514 | 6,639 | 7,163 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | 4. Dismissals, by gender, management group and age bracket | | | | | | | | | | | | | | 2025 | | | | | | 2024 | | | | | | | Women | Men | Other | Not declared | Total | | Women | Men | Other | Not declared | Total | | Gender | 7,942 | 6,595 | 1 | 8 | 14,546 | | 7,755 | 6,599 | 2 | 29 | 14,385 | | | Senior executive | Other executive | Other employees | | Total | | Senior executive | Other executive | Other employees | | Total | | Management group | 90 | 1,571 | 12,885 | | 14,546 | | 114 | 1,229 | 13,042 | | 14,385 | | | <30 | 30-50 | >50 | | Total | | <30 | 30-50 | >50 | | Total | | Age bracket | 4,122 | 8,481 | 1,943 | | 14,546 | | 4,495 | 7,866 | 2,024 | | 14,385 | A. Dismissal: the unilateral termination of an employment contract by decision of the company includes departures within the framework of reorganisation processes, for individual performance reasons or disciplinary measures. It does not include temporary absences or transfers to other Group companies. Annual report 2025227 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | SN 9. Alternative performance measures (APMs) The following are additional alternative performance measures (APMs) to those listed in section [8](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) of the chapter ['Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [Financial Review'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) . The metrics we use in this report have not been subject to further third-party verification beyond the scope of limited assurance. #### Data related to tax contribution The profits obtained, and the taxes accrued and paid, correspond to the countries where we operate. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Taxes paid by the Group | | The taxes Santander pays directly are included in the cash flow statement and mainly stem from the corporate income tax paid. They also include non-recoverable value added tax (VAT), employers' social security contributions, charges levied on banks and financial transactions in the geographies were we operate, and other taxes. See data in the section [SN 7.7 Tax contribution](#i6ecb2a0d58d04b53bfadfa2a833efaa7_262) of this chapter. | | It reflects how the Bank complies with its commitment to tax transparency in the jurisdictions where it operates. | | Third-party taxes | | These are those generated by the development of our economic activity. This is the sum of  salary withholdings and employees' social security contributions, recoverable VAT, tax deduced at source on capital, non- resident taxes, property taxes, stamp taxes, taxes related to the financial activity, and others. See data in the section [SN 7.7 Tax contribution](#i6ecb2a0d58d04b53bfadfa2a833efaa7_262) of this chapter. | | | Total tax contribution | | The Group's total tax contribution includes the taxes paid by the Group as a direct cost and the taxes collected from third parties in the course of our economic activity. See data in the section [SN 7.7 Tax contribution](#i6ecb2a0d58d04b53bfadfa2a833efaa7_262) of this chapter. | | #### Data related to sustainable finance | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Green finance raised and facilitated | | Nominal amount of project finance, financial advisory, project bonds, green bonds (DCM), export finance, mergers and acquisitions (M&A), and equity capital markets (ECM) transactions ranked by the ESG Classification Meeting and reported in the League Tables of Infralogic, Bloomberg, Dealogic, and TXF since the beginning of the year. See data in section [2. Climate transition plan](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) and [SN 7.1 Green transition](#i6ecb2a0d58d04b53bfadfa2a833efaa7_244) (Table 1. Green finance) in this chapter. | | It reflects Santander's ambition and contribution to helping our customers, and society as a whole, in the transition to a low-carbon economy. | | Financing volume of renewable energy projects | | Nominal amount of renewable energy projects (greenfield and brownfield) financed since the beginning of the year and reported externally as reported in Infralogic's League Tables for project financing. See data in section [Sustainability 2025 summary](#i6ecb2a0d58d04b53bfadfa2a833efaa7_49) of this chapter. | | | Financing volume of renewable electric vehicles | | Financing volume of vehicles powered exclusively by a rechargeable electric battery (no petrol engine). See data in section [Sustainability 2025 summary](#i6ecb2a0d58d04b53bfadfa2a833efaa7_49) of this chapter. | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Credit disbursed to microentrepreneurs (EUR) | | Total amount of credit disbursed during the year to low-income entrepreneurs with low access to banking services, or with difficulties in accessing credit, with the objective of creating and/or growing their businesses. Data includes information on microfinance programmes in Brazil, Colombia, Mexico and Peru. See data in section [Sustainability 2025 summary](#i6ecb2a0d58d04b53bfadfa2a833efaa7_49) and [SN 7.5 Financial](#i6ecb2a0d58d04b53bfadfa2a833efaa7_256) [inclusion](#i6ecb2a0d58d04b53bfadfa2a833efaa7_256) (Table 27. Microfinance) of this chapter. | | It reflects Santander's ambition and contribution to help address financial inclusion challenges in the markets where we operate. | Annual report 2025228 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Data related to financed emissions | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Financed emissions from corporates and projects | | For the financed emissions associated with business loans, equities, investments, bonds, and projects we calculate the emissions in accordance with the methodology established by management that is based on the Partnership for Carbon Accounting Financials (PCAF) standard for financed emissions. The financed emissions for a corporate client portfolio are calculated using the following equation: Financed emissions = Attribution Factor x Emissions The following equations are used to determine the attribution factor at company level: Attribution Factor = Outstanding amount / Total Enterprise Value In the case of corporate business loans (CIB alignment targets), Banco Santander calculates the Total Value of the Company (used to obtain the emissions attribution factor) by adding the total equity and debt of the company to avoid the high volatility in market capitalization. In the case of Project Finance, the financed emissions for a Project are calculated using the production and an emission factor. We use as data sources (non-exhaustive): annual/Sustainability Reports of our customers, Asset Impact, Capital IQ, Carbon Disclosure Project, S&P Trucost, Transition Pathway Initiative, Wood Mackenzie, IBA, JATO, Global data and PCAF database. See data in section [Our transition plan](#i6ecb2a0d58d04b53bfadfa2a833efaa7_232) in this chapter. | | These metrics reflect Santander’s ambition and contribution to addressing the challenges of emissions measurement, supporting our customers in their objectives and aligning portfolios to progress on our ambition towards net zero emissions by 2050. | | Auto – lending | | For the auto lending portfolio for Santander Consumer Finance Europe the financed emissions are those associated with the passenger cars financed and leased (passenger cars being the most material vehicle type in the Auto portfolio). These are calculated following the PCAF methodology: Financed emissions = ∑ emissions per vehicle / ∑ attributed annual distance Emissions per vehicle = vehicle emissions × attribution factor × annual distance To determine the attribution factor of each of the loans, the following formula is used: Attribution factor = Outstanding amount / vehicle value at origination The vehicle emissions are calculated using the emissions of each specific vehicle, where available, multiplied by the annual distance estimated for each vehicle and by the attribution factor. See data in section [Our transition plan](#i6ecb2a0d58d04b53bfadfa2a833efaa7_232) in this chapter. | | | Mortgages and Commercial Real Estate | | Mortgages and commercial real estate portfolio emissions lending on residential mortgages includes Scope 1 and 2 emissions based on actual (where available) and modelled EPC's. We define this asset class as on balance sheet loans for specific consumer purposes – namely the purchase and refinance of residential property. The following calculation approach was used to arrive at the financed emissions for each of the properties in the portfolio: Financed emissions = building emissions x LTV The attribution factor is the outstanding amount of the loan as per the reporting year for each mortgage, divided by the total property value at origination for each building. See data in section [Our transition plan](#i6ecb2a0d58d04b53bfadfa2a833efaa7_232) in this chapter. | | | Agriculture | | Agriculture portfolio emissions for Santander Brazil from lending to farmers associated with primary production activities in Brazil (agriculture and livestock activities), financed through Retail mechanisms. Assessment includes Scope 1 and 2 emissions. In this sector, Santander’s financed emissions estimation is based on GHG Protocol guidance and PCAF methodology, with adaptations to accommodate data availability in retail agriculture portfolio. Land management emissions: The general equations used to calculate financed emissions of an agricultural activity are as follows: Financed emissions = ∑ quantity produced or area of production or number of animals x Emission factor Emission factor sources include the GHG Protocol Brazil Tool for the Agricultural Sector, the Reference Report from Brazil's IV National Inventory, among other specialized literature. Land Use Change (LUC) emissions: The total LUC emissions for the portfolio are calculated for each property: collecting shapefiles of farms associated with the operations financed in the retail portfolio, computing annual tree- cover loss areas (in hectares), for the last 20 years, for each property, and evaluate corresponding carbon stock loss using emission factors, applying the Linear Discounting Methodology, and calculating the attribution factor for emissions related to Santander. Sources (non-exhaustive): properties’ Rural Environmental Registry number, MapBiomas Collection 8, Brazil´s IV National Inventory Carbon Map.x See data in section [Our transition plan](#i6ecb2a0d58d04b53bfadfa2a833efaa7_232) in this chapter. | | | Sovereign bonds | | For the sovereign bonds portfolio we calculate the financed emissions following the PCAF standard recommendations, as follows: Attributed emissions = Exposure to Sovereign Bond (USD) / PPP-adjusted GDP (international USD) x Sovereign Emissions (tCO2e) See data in section [Our transition plan](#i6ecb2a0d58d04b53bfadfa2a833efaa7_232) in this chapter. | | Annual report 2025229 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Data related to responsible investment | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Socially responsible investment assets under management (SRI AUM) | | Value corresponding to total volume of assets under management registered as article 8 - promoting ESG characteristics - and 9 - with explicit sustainability objectives - of the Sustainable Finance Disclosure Regulation (SFDR, EU Reg. 2019/2088) except for illiquid investments in Private Banking which are reported in terms of committed capital. It includes: i) assets managed or advised by Santander Asset Management (SAM) and other Group asset managers in the EU and, using equivalent criteria, in countries where SFDR does not apply; and ii) third party funds and assets under advise deemed sustainable investments according to either SFDR (Article 2.17) or internal criteria as per SFICS. See data in section 3.2.2 Responsible investment and social finance of this chapter. | | It reflects Santander's ambition and contribution to promote responsible investment. It also allows our managers and bankers to have a more complete vision of the assets in which to invest and identify competitive advantages and mitigate risks. | #### Data related to community support | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Support for education, employment and entrepreneurship | | Total amount invested to support education, employment and entrepreneurship. See data in section [3.2.4 Community support](#i6ecb2a0d58d04b53bfadfa2a833efaa7_184) and [SN 7.6 Community](#i6ecb2a0d58d04b53bfadfa2a833efaa7_259) [support](#i6ecb2a0d58d04b53bfadfa2a833efaa7_259) (table 27. Community support) of this chapter. | | It reflects Santander's ambition and contribution to promoting (beyond our business operations) the progress and inclusive and sustainable growth of the communities where we are present. | | Support for other local initiatives | | Total amount invested through local initiatives to promote childhood education, social welfare (especially among vulnerable groups), art and culture. See data in section [3.2.4 Community support](#i6ecb2a0d58d04b53bfadfa2a833efaa7_184) and [SN 7.6 Community](#i6ecb2a0d58d04b53bfadfa2a833efaa7_259) [support](#i6ecb2a0d58d04b53bfadfa2a833efaa7_259) (table 27. Community support) of this chapter. | | | Total community support | | Sum of investment in education, employability and entrepreneurship, plus investment in other community support programmes. See data in section [3.2.4 Community support](#i6ecb2a0d58d04b53bfadfa2a833efaa7_184) and [SN 7.6 Community](#i6ecb2a0d58d04b53bfadfa2a833efaa7_259) [support](#i6ecb2a0d58d04b53bfadfa2a833efaa7_259) (table 27. Community support)of this chapter. | | #### Data related to suppliers | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Payments to suppliers | | Total amount of payments made to suppliers outside the Group. See data in section [4.4 Our suppliers](#i6ecb2a0d58d04b53bfadfa2a833efaa7_211) of this chapter. | | It reflects the Group's economic contribution through the purchase of products and services in its operations. It also reflects our commitment to the local economies of the geographies in which we operate. | | % Turnover of locally contracted suppliers (M EUR) | | % of the Group's total turnover made to suppliers based in the same geography where the services are purchased. Turnover from locally contracted suppliers is divided by total turnover to suppliers. See data in section [4.4 Our suppliers](#i6ecb2a0d58d04b53bfadfa2a833efaa7_211) of this chapter. | | Annual report 2025230 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | SN 10. Non-financial information Act 11/2018 content index #### Table of equivalences with reporting requirements under Spain's Act 11/2018 | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | Non-financial information to be disclosed | | Chapter/section of the annual report | | Correspondence with CSRD/other regulations | | 0. General Information | Brief description of the Group’s business model (including its business environment, organization and structure, markets, objectives and strategies, plus the main factors and trends that can affect its future performance). | | Business model and strategy (p. [7](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) ). Economic and financial review (p. [409](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) ). 1. Sustainability at Santander (p. [21](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58)) [1.2 Materiality assessment]. SN 3. Materiality assessment - Detailed methodology (p. [114](#i6ecb2a0d58d04b53bfadfa2a833efaa7_226)). | | SBM-1 SBM-2 GOV-1 MDR-T E1-4 S1-5 S3-5 S4-5 | | A description of the Group's policies that includes due diligence procedures for identifying, assessing, preventing and mitigating risks and significant impacts, and for verifying and controlling, including the measures in which they have been adopted): | | 1. Sustainability at Santander (p. [21](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) ) [1.4 Sustainability governance] [1.4.2 Human rights due diligence]. SN 2 Sustainability governance (p. [110](#i6ecb2a0d58d04b53bfadfa2a833efaa7_223)) [Cross-cutting regulations to embed ESG standards in our business model]. 2. Climate transition plan (p. [31](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73)) [2.3 Embedding ESG in risk management]. 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) [3.2.3 Management of Environmental and social aspects]. | | GOV-4 MDR-P E1-2 S1-1 S3-1 S4-1 G1-1 | | The results of these policies, including key indicators of relevant non-financial results that allow the monitoring and evaluation of progress and that favour the comparability between companies and sectors, in accordance with national, European or international frameworks of reference used for each matter. | | 2. Climate transition plan (p. [31](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) ). 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ). 4. Business conduct (p. [93](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199) ). | | MDR-M E1 S1 S3 S4 G1 | | | | SN 7. Our progress in figures (p. [129](#i6ecb2a0d58d04b53bfadfa2a833efaa7_241) ). | | | The main risks related to these matters associated with the Group's activities (business relationships, products or services) that may have a negative effect in these areas, and how the Group manages these risks, explaining the procedures used to detect and assess them in accordance with national, European or international frameworks of reference for each matter. It must include information about the impacts that have been detected, offering a breakdown, in particular of the main risks in the short, medium and long term. | | 1. Sustainability at Santander (p. [21](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) ) [1.2 Materiality assessment]. SN 3. Materiality assessment - detailed methodology (p. [114](#i6ecb2a0d58d04b53bfadfa2a833efaa7_226)) [Information on impacts, risks and opportunities]. 2. Climate transition plan (p. [31](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73)). 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154)). 4. Business conduct (p. [93](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199) ). | | GOV-5 SBM-3 IRO-1 E1 S1 S3 S4 G1 | Annual report 2025231 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | Non-financial information to be disclosed | | Chapter/section of the annual report | | Correspondence with CSRD/other regulations | | 1. Environmental Information | Detailed information on the current and foreseeable effects of the activities of the company in the environment and, where appropriate, health and safety, environmental evaluation or certification procedures; the resources dedicated to the prevention of environmental risks; the application of the principle of caution, the amount of provisions and guarantees for environmental risks. | | 2. Climate transition plan (p. [31](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) ); At the end of the 2025 financial year, no significant account is presented in the Consolidated Annual Accounts of the Group that should be included in this chapter regarding environmental provisions or guarantees. | | SBM-3 IRO-1 MDR-A MDR-M E1 SBM-3 E1 IRO-1 E1-3 E1-6 E1-7 E1-9 | | Contamination: | | | | | | Measures to prevent, reduce or repair CO 2 emissions that seriously affect the environment, taking into account any form of air pollution, including noise and light pollution. | | 2. Climate transition plan (p. [31](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) ) [2.4.5 Our environmental footprint]. | | MDR-A E1-3 E1-7 | | Circular economy and waste prevention and management: | | | | | | Waste prevention measures, waste recycling measures, waste reuse measures; other forms of waste recovery and reuse; actions against food waste. | | 2. Climate transition plan (p. [31](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) ) [2.4.5 Our environmental footprint]. | | E5 IRO-1 | | Sustainable use of resources: | | | | | | Use and supply of water according to local limitations | | 2. Climate transition plan (p. [31](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) ) [2.4.5 Our environmental footprint]. SN 7.1 Green transition (p. [130](#i6ecb2a0d58d04b53bfadfa2a833efaa7_244) ) [Table 2. Environmental footprint] | | E3 IRO 1 | | Consumption of raw materials and measures taken to improve the efficiency of its use. | | 2. Climate transition plan (p. [31](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) ) [2.4.5 Our environmental footprint]. SN 7.1 Green transition (p. [130](#i6ecb2a0d58d04b53bfadfa2a833efaa7_244) ) [Table 2. Environmental footprint] | | E5 IRO-1 | | Energy: direct and indirect consumption, measures taken to improve energy efficiency, use of renewable energies | | 2. Climate transition plan (p. [31](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) ) [2.4.5 Our environmental footprint]. SN 7.1 Green transition (p. [130](#i6ecb2a0d58d04b53bfadfa2a833efaa7_244) ) [Table 2. Environmental footprint] | | MDR-A MDR-M E1-3 E1-5 | | Climate change: | | | | | | Important elements of greenhouse gas emissions generated as a business activity (including goods and services produced) | | 2. Climate transition plan (p. [31](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) ) [2.4.5 Our environmental footprint]. SN 7.1 Green transition (p. [130](#i6ecb2a0d58d04b53bfadfa2a833efaa7_244) ) [Table 2. Environmental footprint]. | | MDR-M E1-6 | | Measures taken to adapt to the consequences of climate change | | 2. Climate transition plan (p. [31](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) ) | | MDR-A E1 SBM-3 E1-1 E1-3 | | Reduction targets voluntarily established in the medium and long term to reduce greenhouse gas emissions and means implemented for this purpose. | | 2. Climate transition plan (p. [31](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) ) | | MDR-T E1-4 | | Protection of biodiversity: | | | | | | Measures taken to preserve or restore biodiversity | | 2. Climate transition plan (p. [31](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) ) [2.3.5 Our approach to nature and biodiversity]. | | E4 IRO-1 | | Impacts caused by the activities or operations of protected areas | | | Annual report 2025232 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | Non-financial information to be disclosed | | Chapter/section of the annual report | | Correspondence with CSRD/other regulations | | 2. Social | Employment: | | | | | | Total number and distribution of employees by gender, age, country and professional classification | | SN 7.3 Employees (p. [217](#i6ecb2a0d58d04b53bfadfa2a833efaa7_250) ). | | MDR-M S1-6 S1-9 | | Total number and distribution of contracts modes and annual average of undefined contracts, temporary contracts, and part-time contracts by: sex, age and professional classification. | | SN 7.3 Employees (p. [217](#i6ecb2a0d58d04b53bfadfa2a833efaa7_250) ). | | MDR-M S1-6 S1-9 | | Number of dismissals by: gender, age and professional classification. | | SN 7.3 Employees (p. [217](#i6ecb2a0d58d04b53bfadfa2a833efaa7_250) ). | | MDR-M S1-6 | | Average remuneration and its progression broken down by gender, age and professional classification | | SN 7.3 Employees (p. [217](#i6ecb2a0d58d04b53bfadfa2a833efaa7_250) ). | | MDR-M S1-16 | | Salary gap and remuneration of equal or average jobs in society | | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154)) [3.1.3 Inclusive culture]. | | MDR-M S1-16 | | Average remuneration of directors and executives (including variable remuneration, allowances, compensation, payment to long-term savings forecast systems and any other payment broken down by gender) | | SN 7.3 Employees (p. [217](#i6ecb2a0d58d04b53bfadfa2a833efaa7_250) ). | | GOV-3 MDR-M S1-16 | | Implementation of work disconnection policies | | 3. Supporting employees, communities and customers (p.[70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) [3.1.2 Working conditions]. | | MDR-P S1-1 | | Employees with disabilities | | 3. Supporting employees, communities and customers (p.[70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) [3.1.3 Inclusive culture]. | | MDR-M S1-12 | | Organization of work: | | | | | | Organization of work time | | 3. Supporting employees, communities and customers (p.[70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) [3.1.2 Working conditions]. | | MDR-P MDR-A S1-1 S1-4 | | Number of absent hours | | SN 7.3 Employees (p. [217](#i6ecb2a0d58d04b53bfadfa2a833efaa7_250) ). | | MDR-M S1-14 | | Measures designed to facilitate work-life balance and encourage a jointly responsible use of said measures by parents | | 3. Supporting employees, communities and customers (p.[70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) [3.1.2 Working conditions]. | | MDR-A S1-4 | | Health and safety: | | | | | | Conditions of health and safety in the workplace | | 3. Supporting employees, communities and customers (p.[70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) [3.1.2 Working conditions]. | | MDR-A S1-14 | | Occupational accidents, in particular their frequency and severity, as well as occupational illnesses. Broken down by gender. | | SN 7.3 Employees (p. 217). | | MDR-M S1-14 | | Social relations: | | | | | | Organization of social dialogue (including procedures to inform and consult staff and negotiate with them) | | 3. Supporting employees, communities and customers (p.[70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) [3.1.2 Working conditions]. | | MDR-A S1-2 S1-8 | | Percentage of employees covered by collective bargaining agreements by country | | SN 7.3 Employees (p. 217). | | MDR-M S1-8 | | Balance of the collective bargaining agreements (particularly in the field of health and safety in the workplace) | | 3. Supporting employees, communities and customers (p.[70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) [3.1.2 Working conditions]. SN 7.3 Employees (p. [217](#i6ecb2a0d58d04b53bfadfa2a833efaa7_250) ). | | MDR-M S1-8 S1-14 | | Mechanisms and procedures that employers have for encouraging the involvement of workers in management of the company, in terms of information, consultation and participation | | 3. Supporting employees, communities and customers (p.[70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) [3.1.4 Employee feedback and experience]. 4. Business conduct (p. [93](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199) ) [4.3 Ethical channels]. | | MDR-A S1-2 S1-8 | | Training: | | | | | | The policies implemented in the field of training | | 3. Supporting employees, communities and customers (p.[70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) [3.1.1 Talent and skills development] | | MDR-P S1-1 | | Total number of hours of training by professional categories. | | SN 7.3 Employees (p. [217](#i6ecb2a0d58d04b53bfadfa2a833efaa7_250) ). | | MDR-M S1-13 | | | | | | | | Annual report 2025233 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | Non-financial information to be disclosed | | Chapter/section of the annual report | | Correspondence with CSRD/other regulations | | 2. Social | Accessibility: | | | | | | Universal accessibility of people | | 3. Supporting employees, communities and customers (p.[70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) [3,1.3 Inclusive culture] [3.2.4 Community support] [3.3.1 Conduct with customers]. | | MDR-A S1-4 S1-12 | | Equality: | | | | | | Measures taken to promote equal treatment and opportunities between women and men, Equality plans (Chapter III of Organic Law 3/2007, of 22 March, for the effective equality of women and men), measures taken to promote employment, protocols against sexual and gender- based harassment, Policy against all types of discrimination and, where appropriate, integration of protocols against sexual and gender-based harassment and protocols against all types of discrimination and, where appropriate, management of diversity | | 3. Supporting employees, communities and customers (p.[70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) [3,1.3 Inclusive culture]. [3.2.4 Community support]. | | MDR-P MDR-A S1-1 S1-4 S1-12 | | | | 3. Human Rights | Application of due diligence procedures in the field of Human Rights | | 1. Sustainability at Santander (p.[21](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) ) [1.4.2 Human rights due diligence]. | | GOV-4 | | Prevention of the risks of Human Rights violations and, where appropriate, measures to mitigate, manage and repair any possible abuses committed | | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154)). 4. Business conduct (p. [93](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199)). | | MDR-A S1-4 S3-4 S4-4 | | Complaints about cases of human rights violations | | 4. Business conduct (p. [93](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199) ) [4.3 Ethical channels]. | | MDR-M S1-17 S3-4 S4-4 | | Promotion and compliance with the provisions of the fundamental conventions of the International Labour Organization regarding respect for freedom of association and the right to collective bargaining. | | 3. Supporting employees, communities and customers (p.[70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) [3.1.2 Working conditions]. NS 7.3 Employees (p. [217](#i6ecb2a0d58d04b53bfadfa2a833efaa7_250) ) [Table 11 Collective bargaining coverage and social dialogue]. | | MDR-P S1-1 | | Elimination of discrimination in respect of employment and occupation; elimination of forced or compulsory labour; and the effective abolition of child labour. | | 3. Supporting employees, communities and customers (p.[70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) [3.1.2 Working conditions] [3.2.3 Management of environmental and social aspects]. 4. Business conduct (p. [93](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199)) [4.2 Ethical conduct] [4.3 Ethical channels] | | MDR-P S1-1 | | 4. Fight against corruption | Measures taken to prevent corruption and bribery | | 4. Business conduct (p. [93](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199)) [Financial crime compliance (FCC)]. Risk management and compliance chapter: 6.2 Compliance risk management section (p. [588](#i6ecb2a0d58d04b53bfadfa2a833efaa7_880)). | | MDR-A G1-3 | | Measures to combat money laundering | | 4. Business conduct (p. [93](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199)) [Financial crime compliance (FCC)]. Risk management and compliance chapter: 6.2 Compliance risk management section (p. [588](#i6ecb2a0d58d04b53bfadfa2a833efaa7_880)). | | MDR-A G1-3 | | Contributions to non-profit foundations and entities | | 3. Supporting employees, communities and customers (p.[70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) [3.2.4 Community support]. | | MDR-A S3-4 | Annual report 2025234 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | Non-financial information to be disclosed | | Chapter/section of the annual report | | Correspondence with CSRD/other regulations | | 5. Information on the company | Commitments of the company to sustainable development: | | | | | | The impact of the company’s activity on employment and local development | | Sustainability 2025 summary 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) [3.2.1 Supporting the economic and social development of our communities]  [3.2.3 Management of Environmental and social aspects] [3.2.4 Community support] [3.3.2 Financial health and inclusion]. | | MDR-A MDR-T MDR-M S3-4 S3-5 | | The impact of the company’s activity on local towns and villages and in the country. | | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154)) [3.2.4 Community support] [3.3.2 Financial health and inclusion]. | | MDR-A MDR-T MDR-M S3-4 S3-5 | | Relations maintained with the representatives of local communities and the modalities of dialogue with them. | | 1.Sustainability at Santander (p.[21](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) )  [1.3 Stakeholder engagement]. | | MDR-A S3-2 | | Association or sponsorship actions | | Santander participates in the sectoral associations representing financial activity in the countries in which it operates, such as the AEB (Spanish Banking Association) in the case of Spain. | | MDR-A S3-4 | | Outsourcing and suppliers: | | | | | | Inclusion of social, gender equality and environmental issues in the procurement policy | | 4. Business conduct  (p. [93](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199)) [4.4 Our suppliers]. | | MDR-P G1-2 | | Consideration in relations with suppliers and subcontractors of their responsibility | | 4. Business conduct  (p. [93](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199)) [4.4 Our suppliers]. | | MDR-A G1-2 | | Supervision and audit systems and resolution thereof | | 4. Business conduct  (p. [93](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199)) [4.4 Our suppliers]. | | MDR-M G1-2 | | Consumers: | | | | | | Measures for the health and safety of consumers | | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154)). Risk, compliance and conduct management chapter: 7.2 Compliance and conduct risk management section (p. [548](#i6ecb2a0d58d04b53bfadfa2a833efaa7_790)). | | MDR-A S4-4 | | Systems for complaints received and resolution thereof | | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154)). Risk, compliance and conduct management chapter: 7.2 Compliance and conduct risk management section (p. [548](#i6ecb2a0d58d04b53bfadfa2a833efaa7_790) ). | | MDR-M S4-4 | | Tax information: | | | | | | The profits obtained country by country | | Auditor's report and 2025 annual consolidate accounts (p. [607](#i6ecb2a0d58d04b53bfadfa2a833efaa7_910)) (Annex VI Annual banking report) and Auditor's Report and 2024 annual consolidate accounts (Annex VI Annual banking report). | | - | | Taxes on benefits paid | | SN 7.7 Tax contribution (p. [225](#i6ecb2a0d58d04b53bfadfa2a833efaa7_262)) | | | Public grants received | | Grupo Santander did not receive significant public subsidies in 2024 and 2025. More details see VI Annual banking report, section e)Public subsidies (p. [904](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1345)). | | - | | 6. Other relevant information | EU Taxonomy | | Information related to article 8 of EU Taxonomy: 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) [3.2.2 Responsible investment and social finances]. SN 5. EU Taxonomy (p. [125](#i6ecb2a0d58d04b53bfadfa2a833efaa7_235)). | | EU Regulation 2020/852 and Commission Delegated Regulations 2021/2139 and 2021/2178 as amended by Delegated Regulations (EU) 2022/1214, 2023/2485, 2023/2486 and 2026/73 | Annual report 2025235 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | SN 11. Commission Delegated Regulation (EU) 2023/2772 on sustainability reporting #### standards content index Table with references to sections and subsections of the Sustainability statement that respond to the information requirements of the Directive (EU) 2022/2464 of the European Parliament and the Commission Delegated Regulation (EU) 2023/2772. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Commission Delegated Regulation (EU) 2023/2772 content index | | | | | | ESRS 2 - General disclosures | | | | | | Basis for preparation | Section | Sub-section | Sub-sub-section | Comments | | BP-1 – General basis for preparation of sustainability | About this chapter (p. [18](#i6ecb2a0d58d04b53bfadfa2a833efaa7_52) ) Sustainability notes (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_214)) | SN 1. Introduction, basis of presentation of the consolidated sustainability statement and other information (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_217)) | | | | BP-2 – Disclosures in relation to specific circumstances | Sustainability notes (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_214)) | SN 1. Introduction, basis of presentation of the consolidated sustainability statement and other information (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_217)) | | | | | | | | | | Governance | Section | Sub-section | Sub-sub-section | Comments | | GOV-1 – The role of the administrative, management and supervisory bodies | 1. Sustainability at Santander (p. [21](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) ) Sustainability notes (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_214)) | 1.4 Sustainability governance (p. [29](#i6ecb2a0d58d04b53bfadfa2a833efaa7_70) ) SN 2. Sustainability governance (p. [110](#i6ecb2a0d58d04b53bfadfa2a833efaa7_223)) SN 7.3 Employees (p. [217](#i6ecb2a0d58d04b53bfadfa2a833efaa7_250) ) | Table 17. Senior management composition | | | GOV-2 – Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies | Sustainability notes (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_214)) | SN 2. Sustainability governance (p. [110](#i6ecb2a0d58d04b53bfadfa2a833efaa7_223) ) | | | | GOV-3 - Integration of sustainability-related performance in incentive schemes | 1. Sustainability at Santander (p. [21](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) ) | 1.4 Sustainability governance (p. [29](#i6ecb2a0d58d04b53bfadfa2a833efaa7_70) ) | 1.4.1 Integration of sustainability-related performance in incentive schemes | | | GOV-4 - Statement on due diligence | 1. Sustainability at Santander (p. [21](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) ) | 1.4 Sustainability governance (p. [29](#i6ecb2a0d58d04b53bfadfa2a833efaa7_70) ) | 1.4.2 Human rights due diligence | | | GOV-5 - Risk management and internal controls over sustainability reporting | 1. Sustainability at Santander (p. [21](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) ) Sustainability notes (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_214)) | 1.4 Sustainability governance (p. [29](#i6ecb2a0d58d04b53bfadfa2a833efaa7_70) ) SN 2. Sustainability governance (p. [110](#i6ecb2a0d58d04b53bfadfa2a833efaa7_223)) | | | Annual report 2025236 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Strategy | Section | Sub-section | Sub-sub-section | Comments | | SBM-1 – Strategy, business model and value chain | 1. Sustainability at Santander (p. [21](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) ) Sustainability notes (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_214)) | 1.1 Sustainability strategy (p. [21](#i6ecb2a0d58d04b53bfadfa2a833efaa7_61) ) 2.2 Supporting our customers in their transition goals (p. [33](#i6ecb2a0d58d04b53bfadfa2a833efaa7_91) ) 3.2 Communities' sustainable development (p. [77](#i6ecb2a0d58d04b53bfadfa2a833efaa7_172) ) 3.3. Our customers (p. [85](#i6ecb2a0d58d04b53bfadfa2a833efaa7_187) ) SN 1. Introduction, basis of presentation of the consolidated sustainability statement and other information (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_217) ) SN 7.1 Green transition (p. [130](#i6ecb2a0d58d04b53bfadfa2a833efaa7_244)) SN 7.5 Financial inclusion (p. [223](#i6ecb2a0d58d04b53bfadfa2a833efaa7_256)) | 3.2.2 Responsible investment and social finance (p. [77](#i6ecb2a0d58d04b53bfadfa2a833efaa7_178) ) 3.3.2 Financial inclusion and financial health (p. [88](#i6ecb2a0d58d04b53bfadfa2a833efaa7_193) ) | The percentage of revenues of concerning sectors over the Group’s total revenues is not material (1.05% over the Group’s total revenues). | | SBM-2 – Interests and views of stakeholders | 1. Sustainability at Santander (p. [21](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) ) 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) Sustainability notes (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_214) ) | 1.3 Stakeholder engagement (p. [25](#i6ecb2a0d58d04b53bfadfa2a833efaa7_64)) 3.1 Our employees (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) ) SN 3. Materiality assessment - Detailed methodology (p. [114](#i6ecb2a0d58d04b53bfadfa2a833efaa7_226) ) | 3.1.4 Employee feedback and experience | | | SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business model | 1. Sustainability at Santander (p. [21](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) ) Sustainability notes (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_214)) | 1.1 Sustainability strategy (p. [21](#i6ecb2a0d58d04b53bfadfa2a833efaa7_61) ) 1.2 Materiality Assessment (p. [23](#i6ecb2a0d58d04b53bfadfa2a833efaa7_67) ) SN 3. Materiality assessment - Detailed methodology (p. [114](#i6ecb2a0d58d04b53bfadfa2a833efaa7_226)) | | More details on the financial impact stemming from the opportunities identified in the double materiality assessment, see: [2.2 Supporting our](#i6ecb2a0d58d04b53bfadfa2a833efaa7_91) [customers in their](#i6ecb2a0d58d04b53bfadfa2a833efaa7_91) [transition goals](#i6ecb2a0d58d04b53bfadfa2a833efaa7_91) (volume of assets aligned with the EU Taxonomy for mortgages and automobiles in Europe). [2.2.1 Corporate and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_94) [Investment Banking](#i6ecb2a0d58d04b53bfadfa2a833efaa7_94) (Green Finance raised or facilitated) The potential financial impact of the identified risks usually comes in the form of direct financial losses from legal claims (payments to third parties, compensation, etc.) and penalties. See Note [25.d)](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1102) and [25.e)](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1105) of the annual accounts. | | | | | | | | Disclosures on the materiality assessment process | Section | Sub-section | Sub-sub-section | Comments | | IRO-1 - Description of the processes to identify and assess material impacts, risks and opportunities | 1. Sustainability at Santander (p. [21](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) ) Sustainability notes (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_214)) | 1.2 Materiality Assessment (p. [23](#i6ecb2a0d58d04b53bfadfa2a833efaa7_67)) SN 3. Materiality assessment - Detailed methodology (p. [114](#i6ecb2a0d58d04b53bfadfa2a833efaa7_226) ) | | | Annual report 2025237 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | IRO-2 - Disclosure requirements in ESRS covered by the undertaking’s sustainability statement | Sustainability notes (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_214)) | SN 1. Introduction, basis of presentation of the consolidated sustainability statement and other information (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_217)) SN 3. Materiality assessment - Detailed methodology (p. [114](#i6ecb2a0d58d04b53bfadfa2a833efaa7_226) ) SN 11. Commission Delegated Regulation (EU) 2023/2772 content index | | | | | | | | | | Minimum Disclosure Requirement | Section | Sub-section | Sub-sub-section | Comments | | MDR-P – Policies adopted to manage material sustainability matters | 2. Our climate transition plan (p. [31](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) ) 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) 4. Business conduct (p. [93](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199) ) Sustainability notes (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_214) ) | SN 1. Introduction, basis of presentation of the consolidated sustainability statement and other information (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_217) ) SN 9. Alternative performance measures (p. [227](#i6ecb2a0d58d04b53bfadfa2a833efaa7_268) ) | | | | MDR-A – Actions and resources in relation to material sustainability matters | | | | MDR-M – Metrics in relation to material sustainability matters | | | | MDR-T – Tracking effectiveness of policies and actions through targets | | | | | | | | | | ESRS E1 - Climate change | | | | | | Governance | Section | Sub-section | Sub-sub-section | Comments | | ESRS 2 GOV-3 Integration of sustainability related performance in incentive schemes | 1. Sustainability at Santander (p. [21](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) ) 2. Our climate transition plan (p. [31](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73)) | 1.4 Sustainability Governance (p. [29](#i6ecb2a0d58d04b53bfadfa2a833efaa7_70) ) 2.5 Further actions and enablers (p. [68](#i6ecb2a0d58d04b53bfadfa2a833efaa7_145) ) | 1.4.1 Integration of sustainability-related performance in incentive schemes 2.5.2 Governance & policies | | | | | | | | | Strategy | Section | Sub-section | Sub-sub-section | Comments | | E1-1 – Transition plan for climate change mitigation | 2. Our climate transition plan (p. [31](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) ) Sustainability notes (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_214)) | 2.1 Strategy (p. [31](#i6ecb2a0d58d04b53bfadfa2a833efaa7_76)) 2.2 Supporting our customers in their transition goals (p. [33](#i6ecb2a0d58d04b53bfadfa2a833efaa7_91) ) 2.4 Aiming to align our activity with the Paris Agreement Goals (p. [55](#i6ecb2a0d58d04b53bfadfa2a833efaa7_127) ) 2.5 Further actions and enablers (p. [68](#i6ecb2a0d58d04b53bfadfa2a833efaa7_145)) SN 4. Climate transition plan- (p. [123](#i6ecb2a0d58d04b53bfadfa2a833efaa7_232)) | 2.5.2 Governance & policies | | | ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with S&BM | 2. Our climate transition plan (p. [31](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) ) | 2.3 Embedding ESG in risk management  (p. [39](#i6ecb2a0d58d04b53bfadfa2a833efaa7_109)) | 2.3.1 Resilience of our strategy and business model to climate change 2.3.2 Risk management cycle | | | | | | | | | Impact, risk and opportunity management | Section | Sub-section | Sub-sub-section | Comments | Annual report 2025238 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | ESRS 2 IRO-1 – Description of the processes to identify and assess material climate-related impacts, risks and opportunities | 2. Our climate transition plan (p. [31](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) ) | 2.3 Embedding ESG in risk management (p. [39](#i6ecb2a0d58d04b53bfadfa2a833efaa7_109) ) | 2.3.2 Risk management cycle | | | E1-2 – Policies related to climate change mitigation and adaptation | 2. Our climate transition plan (p. [31](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) ) | 2.5 Further actions and enablers (p. [68](#i6ecb2a0d58d04b53bfadfa2a833efaa7_145) ) | 2.5.1 Strategy for engagement with other key stakeholders 2.5.2 Governance & policies | Further details regarding Governance and Climate Change-related policies in: section 1.4 Sustainability Governance, SN 2. Sustainability governance , SN 6. Classification system and funding framework and section 3.3 (i) Our ESCC policies | | E1-3 – Actions and resources in relation to climate change policies | 2. Our climate transition plan (p. [31](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) ) | 2.2 Supporting our customers in their transition goals (p. [33](#i6ecb2a0d58d04b53bfadfa2a833efaa7_91) ) 2.4 Aiming to align our activity with the Paris Agreement Goals (p. [55](#i6ecb2a0d58d04b53bfadfa2a833efaa7_127)) 2.5 Further actions and enablers (p. [68](#i6ecb2a0d58d04b53bfadfa2a833efaa7_145)) | | | | | | | | | | Metrics and targets | Section | Sub-section | Sub-sub-section | Comments | | E1-4 – Targets related to climate change mitigation and adaptation | 2. Our climate transition plan (p. [31](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) ) Sustainability notes (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_214)) | 2.4 Aiming to align our activity with the Paris Agreement Goals (p. [55](#i6ecb2a0d58d04b53bfadfa2a833efaa7_127)) SN 4. Climate transition plan (p. [123](#i6ecb2a0d58d04b53bfadfa2a833efaa7_232) ) | | | | E1-5 – Energy consumption and mix | 2. Our climate transition plan (p. [31](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) ) Sustainability notes (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_214)) | 2.4 Aiming to align our activity with the Paris Agreement Goals (p. [55](#i6ecb2a0d58d04b53bfadfa2a833efaa7_127)) SN 4. Climate transition plan (p. [123](#i6ecb2a0d58d04b53bfadfa2a833efaa7_232) ) SN 7.1 Supporting the green transition (p. [130](#i6ecb2a0d58d04b53bfadfa2a833efaa7_244) ) | 2.4.5 Our environmental footprint Table 2. Environmental footprint 2024-2025 | | | E1-6 – Gross Scopes 1, 2, 3 and Total GHG emissions | 2. Our climate transition plan (p. [31](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) ) Sustainability notes (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_214)) | 2.4 Aiming to align our activity with the Paris Agreement Goals (p. [55](#i6ecb2a0d58d04b53bfadfa2a833efaa7_127)) SN 4. Climate transition plan (p. [123](#i6ecb2a0d58d04b53bfadfa2a833efaa7_232) ) SN 7.1 Green transition (p. [130](#i6ecb2a0d58d04b53bfadfa2a833efaa7_244) ) | 2.4.5 Our environmental footprint Table 3. Gross Scopes 1, 2, 3 and Total GHG emissions | | | E1-7 – GHG removals and GHG mitigation projects financed through carbon credits | 2. Our climate transition plan (p. [31](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) ) Sustainability notes (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_214)) | 2.4 Aiming to align our activity with the Paris Agreement Goals (p. [55](#i6ecb2a0d58d04b53bfadfa2a833efaa7_127)) SN 7.1 Green transition (p. [130](#i6ecb2a0d58d04b53bfadfa2a833efaa7_244)) | 2.4.5 Our environmental footprint Table 4. GHG mitigation projects financed through carbon credits | | | E1-8 - Internal carbon pricing | Sustainability notes (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_214)) | SN 4. Climate transition plan (p. [123](#i6ecb2a0d58d04b53bfadfa2a833efaa7_232) ) | | | | E1-9 – Anticipated financial effects from material physical and transition risks and potential climate-related opportunities | 2. Our climate transition plan (p. [31](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) ) | 2.3 Embedding ESG in risk management (p. [39](#i6ecb2a0d58d04b53bfadfa2a833efaa7_109) ) | 2.3.4 Potential financial effects | Phase-in (partially). Response to requirements 66.a), 66.c) and 67.c). | | | | | | | | ESRS E2, E3, E4, E5. | Section | Sub-section | Sub-sub-section | Comments | | ESRS 2 IRO-1 – Description of the processes to identify and assess material climate-related impacts, risks and opportunities | 2. Our climate transition plan (p. [31](#i6ecb2a0d58d04b53bfadfa2a833efaa7_73) ) | 2.3 Embedding ESG in risk management (p. [39](#i6ecb2a0d58d04b53bfadfa2a833efaa7_109) ) | 2.3.5 Our approach to nature and biodiversity | | | | | | | | | ESRS S1 - Own Workforce | | | | | Annual report 2025239 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Strategy | Section | Sub-section | Sub-sub-section | Comments | | ESRS 2 SBM 2 - Interests and views of stakeholders | 1. Sustainability at Santander (p. [21](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) ) | 1.3 Stakeholder engagement (p. [25](#i6ecb2a0d58d04b53bfadfa2a833efaa7_64)) | | | | ESRS 2 SBM 3 - Material impacts, risks and opportunities and their interaction with strategy and business model | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) Sustainability notes (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_214) ) | 3.1 Our employees (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) ) SN 3. Materiality assessment - Detailed methodology (p. [114](#i6ecb2a0d58d04b53bfadfa2a833efaa7_226) ) | 3.1.1 Talent and skills development | | | | | | | | | Impact, risk and opportunity management | Section | Sub-section | Sub-sub-section | Comments | | S1-1 - Policies related to own workforce | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) | 3.1 Our employees (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) ) | 3.1.1 Talent and skills development 3.1.2 Working conditions 3.1.3 Inclusive culture | | | S1-2 - Processes for engaging with own workforce and workers' representatives about impacts | 1. Sustainability at Santander (p. [21](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) ) 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) | 1.3 Stakeholder engagement (p. [25](#i6ecb2a0d58d04b53bfadfa2a833efaa7_64)) 3.1 Our employees (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) ) | 3.1.2 Working conditions 3.1.4 Employee feedback and experience | | | S1-3 – Processes to remediate negative impacts and channels for own workers to raise concerns | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) 4. Business conduct (p. [93](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199)) | 3.1 Our employees (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) ) 4.3 Ethical channels (p. [96](#i6ecb2a0d58d04b53bfadfa2a833efaa7_208)) | 3.1.3 Inclusive culture 3.1.4 Employee feedback and experience 4.3.1 Canal abierto | | | S1-4 – Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) | 3.1 Our employees (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) ) | 3.1.1 Talent and skills development 3.1.2 Working conditions 3.1.3 Inclusive culture 3.1.4 Employee feedback and experience | | | | | | | | | Metrics and targets | Section | Sub-section | Sub-sub-section | Comments | | S1-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) | 3.1 Our employees (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) ) | 3.1.1 Talent and skills development 3.1.2 Working conditions 3.1.3 Inclusive culture | | | S1-6 – Characteristics of the undertaking’s employees | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) Sustainability notes (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_214) ) | 3.1 Our employees (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) ) SN 7.3 Employees (p. [217](#i6ecb2a0d58d04b53bfadfa2a833efaa7_250) ) | 3.1.1 Talent and skills development Table 6. Employees by region Table 7. Employees by gender Table 10. Employees by employment contract Table 12. Turnover by region | | | S1-8 – Collective bargaining coverage and social dialogue | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) Sustainability notes (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_214) ) | 3.1 Our employees (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) ) SN 7.3 Employees (p. [217](#i6ecb2a0d58d04b53bfadfa2a833efaa7_250) ) | 3.1.2 Working conditions Table 11. Collective bargaining coverage and social dialogue | | | S1-9 – Diversity metrics | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) Sustainability notes (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_214) ) | 3.1 Our employees (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) ) SN 7.3 Employees (p. [217](#i6ecb2a0d58d04b53bfadfa2a833efaa7_250) ) | 3.1.3 Inclusive culture Table 8. Employees by management group and gender Table 9. Employees by age bracket | | | S1-10 – Adequate wages | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) | 3.1 Our employees (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) ) | 3.1.2 Working conditions | | Annual report 2025240 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | S1-11 – Social protection | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) | 3.1 Our employees (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) ) | 3.1.2 Working conditions | | | S1-12– Persons with disabilities | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) | 3.1 Our employees (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) ) | 3.1.3 Inclusive culture | | | S1-13 – Training and skills development metrics | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) Sustainability notes (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_214) ) | 3.1 Our employees (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) ) SN 7.3 Employees (p. [217](#i6ecb2a0d58d04b53bfadfa2a833efaa7_250) ) | 3.1.1 Talent and skills development Table 18. Training Table 19. Hours of training by gender and management group | | | S1-14 – Health and safety metrics | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) Sustainability notes (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_214) ) | 3.1 Our employees (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) ) SN 7.3 Employees (p. [217](#i6ecb2a0d58d04b53bfadfa2a833efaa7_250) ) | 3.1.2 Working conditions Table 20. Occupational health and safety | The Group relies on the phase-in established by the ESRS for specific information of non- Employees (ESRS S1, S1-14, para. 89). | | S1-16 – Compensation metrics (pay gap and total compensation) | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) Sustainability notes (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_214) ) | 3.1 Our employees (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) ) SN 7.3 Employees (p. [217](#i6ecb2a0d58d04b53bfadfa2a833efaa7_250) ) | 3.1.2 Working conditions Table 14. Remuneration ratios | | | S1-17 – Incidents, complaints and severe human rights impacts | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) 4. Business conduct (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154)) | 3.1 Our employees (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_157) ) 4.3 Ethical channels (p. [96](#i6ecb2a0d58d04b53bfadfa2a833efaa7_208) ) | 3.1.3 Inclusive culture | | | | | | | | | ESRS S3 - Affected communities | | | | | | Strategy | Section | Sub-section | Sub-sub-section | Comments | | ESRS 2 SBM-2 – Interests and views of stakeholders | 1. Sustainability at Santander (p. [21](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) ) | 1.3 Stakeholder engagement (p. [25](#i6ecb2a0d58d04b53bfadfa2a833efaa7_64)) | | | | ESRS 2 SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business model | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) Sustainability notes (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_214) ) | 3.2 Communities' sustainable development (p. [77](#i6ecb2a0d58d04b53bfadfa2a833efaa7_172) ) SN 3. Materiality assessment - Detailed methodology (p. [114](#i6ecb2a0d58d04b53bfadfa2a833efaa7_226) ) | 3.2.1 Supporting the economic and social development of our communities | | | | | | | | | Impact, risk and opportunity management | Section | Sub-section | Sub-sub-section | Comments | | S3-1 – Policies related to affected communities | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) | 3.2 Communities' sustainable development (p. [77](#i6ecb2a0d58d04b53bfadfa2a833efaa7_172) ) | 3.2.2 Responsible investment and social finance 3.2.3 Management of environmental and social aspects 3.2.4 Community Support | Further details on governance and other policies related to affected communities: Section 1.4 Sustainability governance and NS 2. Sustainability governance | | S3-2 – Processes for engaging with affected communities about impacts | 1. Sustainability at Santander (p. [21](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) ) 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) | 1.3 Stakeholder engagement (p. [25](#i6ecb2a0d58d04b53bfadfa2a833efaa7_64)) 3.2 Communities' sustainable development (p. [77](#i6ecb2a0d58d04b53bfadfa2a833efaa7_172)) | 3.2.2 Responsible investment and social finance 3.2.3 Management of environmental and social aspects 3.2.4 Community Support | | | S3-3 – Processes to remediate negative impacts and channels for affected communities to raise concerns | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) | 3.2 Communities' sustainable development (p. [77](#i6ecb2a0d58d04b53bfadfa2a833efaa7_172) ) | 3.2.3 Environmental, social and climate change management | | Annual report 2025241 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | S3-4 – Taking action on material impacts on affected communities, and approaches to managing material risks and pursuing material opportunities related to affected communities, and effectiveness of those actions | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) | 3.2 Communities' sustainable development (p. [77](#i6ecb2a0d58d04b53bfadfa2a833efaa7_172) ) | 3.2.2 Responsible investment and social finance 3.2.3 Management of environmental and social aspects 3.2.4 Community Support | | | | | | | | | Metrics and targets | Section | Sub-section | Sub-sub-section | Comments | | S3-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) | 3.2 Communities' sustainable development (p. [77](#i6ecb2a0d58d04b53bfadfa2a833efaa7_172) ) | 3.2.2 Responsible investment and social finance 3.2.3 Management of environmental and social aspects 3.2.4 Community Support | | | | | | | | | ESRS S4 - Consumers and end-users | | | | | | Strategy | Section | Sub-section | Sub-sub-section | Comments | | ESRS 2 SBM-2 – Interests and views of stakeholders | 1. Sustainability at Santander (p. [21](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) ) | 1.3 Stakeholder engagement (p. [25](#i6ecb2a0d58d04b53bfadfa2a833efaa7_64)) | | | | ESRS 2 SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business model | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) Sustainability notes (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_214) ) | 3.3 Our customers (p. [85](#i6ecb2a0d58d04b53bfadfa2a833efaa7_187) ) SN 3. Materiality assessment - Detailed methodology (p. [114](#i6ecb2a0d58d04b53bfadfa2a833efaa7_226) ) | | | | | | | | | | Impact, risk and opportunity management | Section | Sub-section | Sub-sub-section | Comments | | S4-1 – Policies related to consumers and end-users | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) | 3.3 Our customers (p. [85](#i6ecb2a0d58d04b53bfadfa2a833efaa7_187) ) | 3.3.1 Conduct with customers 3.3.2 Financial inclusion and financial health 3.3.3 Privacy, data protection and cybersecurity | Further details on governance and other policies related to our clients: Section 1.4 Sustainability governance and NS 2. Sustainability governance | | S4-2 – Processes for engaging with consumers and end-users about impacts | 1. Sustainability at Santander (p. [21](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) ) 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) | 1.3 Stakeholder engagement (p. [25](#i6ecb2a0d58d04b53bfadfa2a833efaa7_64)) 3.3 Our customers (p. [85](#i6ecb2a0d58d04b53bfadfa2a833efaa7_187) ) | 3.3.1 Conduct with customers 3.3.2 Financial inclusion and financial health 3.3.3 Privacy, data protection and cybersecurity | | | S4-3 – Processes to remediate negative impacts and channels for consumers and end-users to raise concerns | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) | 3.3 Our customers (p. [85](#i6ecb2a0d58d04b53bfadfa2a833efaa7_187) ) | 3.3.1 Conduct with customers | Further details on section 4.3 Ethical channels | | S4-4 – Taking action on material impacts on consumers and end- users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) | 3.3 Our customers (p. [85](#i6ecb2a0d58d04b53bfadfa2a833efaa7_187) ) | 3.3.1 Conduct with customers 3.3.2 Financial inclusion and financial health 3.3.3 Privacy, data protection and cybersecurity | | | | | | | | | Metrics and targets | Section | Sub-section | Sub-sub-section | Comments | | S4-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities | 3. Supporting employees, communities and customers (p. [70](#i6ecb2a0d58d04b53bfadfa2a833efaa7_154) ) | 3.3 Our customers (p. [85](#i6ecb2a0d58d04b53bfadfa2a833efaa7_187) ) | 3.3.1 Conduct with customers 3.3.2 Financial inclusion and financial health 3.3.3 Privacy, data protection and cybersecurity | | | | | | | | | ESRS G1 - Business Conduct | | | | | | Governance | Section | Sub-section | Sub-sub-section | Comments | Annual report 2025242 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | ESRS 2 GOV-1 – The role of the administrative, supervisory and management bodies | 1. Sustainability at Santander (p. [21](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) ) Sustainability notes (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_214)) | 1.4. Sustainability governance (p. [29](#i6ecb2a0d58d04b53bfadfa2a833efaa7_70) ) SN 2. Sustainability governance (p. [110](#i6ecb2a0d58d04b53bfadfa2a833efaa7_223)) | | | | | | | | | | Impact, risk and opportunity management | Section | Sub-section | Sub-sub-section | Comments | | ESRS 2 IRO-1 – Description of the processes to identify and assess material impacts, risks and opportunities | 1. Sustainability at Santander (p. [21](#i6ecb2a0d58d04b53bfadfa2a833efaa7_58) ) Sustainability notes (p. [99](#i6ecb2a0d58d04b53bfadfa2a833efaa7_214)) | 1.2 Materiality assessment (p. [23](#i6ecb2a0d58d04b53bfadfa2a833efaa7_67)) SN 3. Materiality assessment - Detailed methodology (p. [114](#i6ecb2a0d58d04b53bfadfa2a833efaa7_226) ) | | | | G1-1– Corporate culture and Business conduct policies and corporate culture | 4. Business Conduct (p. [93](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199) ) | 4.1 Corporate culture (p. [93](#i6ecb2a0d58d04b53bfadfa2a833efaa7_202) ) 4.2 Ethical Conduct (p. [94](#i6ecb2a0d58d04b53bfadfa2a833efaa7_205)) 4.3 Ethical channels (p. [96](#i6ecb2a0d58d04b53bfadfa2a833efaa7_208) ) | | | | G1-2 – Management of relationships with suppliers | 4. Business Conduct (p. [93](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199) ) | 4.4 Our suppliers (p. [98](#i6ecb2a0d58d04b53bfadfa2a833efaa7_211) ) | | | | G1-3 – Prevention and detection of corruption and bribery | 4. Business Conduct (p. [93](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199) ) | 4.2 Ethical conduct (p. [94](#i6ecb2a0d58d04b53bfadfa2a833efaa7_205) ) | 4.2.3 Financial Crime Compliance | | | | | | | | | Metrics and targets | Section | Sub-section | Sub-sub-section | Comments | | G1-4 – Confirmed incidents of corruption or bribery | 4. Business Conduct (p. [93](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199) ) | 4.2 Ethical conduct (p. [94](#i6ecb2a0d58d04b53bfadfa2a833efaa7_205) ) | 4.2.3 Financial Crime Compliance | | | G1-6 – Payment practices | 4. Business Conduct (p. [93](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199) ) | 4.4 Our suppliers (p. [98](#i6ecb2a0d58d04b53bfadfa2a833efaa7_211) ) | | | Annual report 2025243 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Independent verification report ![Informe Verificación Independiente EINF Grupo Santander 2025_ingles_Página_1.jpg]() Annual report 2025244 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | ![Informe Verificación Independiente EINF Grupo Santander 2025_ingles_Página_2.jpg]() Annual report 2025245 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | ![Informe Verificación Independiente EINF Grupo Santander 2025_ingles_Página_3.jpg]() Annual report 2025246 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | ![Informe Verificación Independiente EINF Grupo Santander 2025_ingles_Página_4.jpg]() Annual report 2025247 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | ![Informe Verificación Independiente EINF Grupo Santander 2025_ingles_Página_5.jpg]() Annual report 2025248 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | ![Informe Verificación Independiente EINF Grupo Santander 2025_ingles_Página_6.jpg]() Annual report 2025249 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Other sustainability information #### Table of equivalence between CSRD and ISSB This table reflects the equivalence of the ESRS standards with the sustainability-related disclosure standards of the International Sustainability Standards Board (ISSB), without implying that the level of detail required by both standards is exactly the same.. In the consolidated management report and, to a greater extent, the sustainability statement (as well as in the audit report and annual accounts), the Group includes information that is equivalent to the requirements under the SASB standards that apply to the financial sector (for more details, see the note under the table). | | | | --- | --- | | | | | ESRS 2 - General disclosures | ISSB | | Basis for preparation | | | BP-1 – General basis for preparation of sustainability | IFRS S2.10(d) | | BP-2 – Disclosures in relation to specific circumstances | | | Governance | | | GOV-1 – The role of the administrative, management and supervisory bodies | IFRS S1.21(b) IFRS S2.6(a) IFRS S2.6(b) | | GOV-2 – Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies | IFRS S2.6(a) | | GOV-3 - Integration of sustainability-related performance in incentive schemes | IFRS S1.21(b) IFRS S2.29(g) IFRS S2.29(i) IFRS S2.6(a) IFRS S2.6(v) | | GOV-4 - Statement on due diligence | | | GOV-5 - Risk management and internal controls over sustainability reporting | | | Strategy | | | SBM-1 – Strategy, business model and value chain | | | SBM-2 – Interests and views of stakeholders | | | SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business model | IFRS S2.10(a) IFRS S2.10(c) IFRS S2.13(a) IFRS S2.13(b) IFRS S2.14(a) IFRS S2.15(a) IFRS S2.15(b) IFRS S2.16(a) IFRS S2.16(b) IFRS S2.16(c) IFRS S2.16(d) | | Disclosures on the materiality assessment process | | | IRO-1 - Description of the processes to identify and assess material impacts, risks and opportunities | IFRS S2.25(a) IFRS S2.25(b) IFRS S2.25(c) | | IRO-2 - Disclosure requirements in ESRS covered by the undertaking’s sustainability statement | | | ESRS E1 - Climate change | | | Governance | | | ESRS 2 GOV-3 Integration of sustainability related performance in incentive schemes | IFRS S1.21(b) IFRS S2.29(g) IFRS S2.6(a) IFRS S2.6(v) | | Strategy | | | E1-1 – Transition plan for climate change mitigation | IFRS S2.14(a) IFRS S2.14(c) IFRS S2.29(e) | | ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with S&BM | | Annual report 2025250 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | --- | --- | | | | | Impact, risk and opportunity management | | | ESRS 2 IRO-1 – Description of the processes to identify and assess material climate-related impacts, risks and opportunities | IFRS S1.23 IFRS S1.B42(c) IFRS S2.10(d) IFRS S2.22(b) IFRS S2.25(a) IFRS S2.25(b) | | E1-2 – Policies related to climate change mitigation and adaptation | | | | | | E1-3 – Actions and resources in relation to climate change policies | IFRS S2.14(a) IFRS S2.14(b) | | | | | | Metrics and targets | | | E1-4 – Targets related to climate change mitigation and adaptation | IFRS S2.33 IFRS S2.33(b) IFRS S2.33(d) IFRS S2.33(e) IFRS S2.33(g) IFRS S2.33(h) IFRS S2.34(a) IFRS S2.36(a) IFRS S2.36(b) IFRS S2.36(d) | | E1-5 – Energy consumption and mix | | | E1-6 – Gross Scopes 1, 2, 3 and Total GHG emissions | IFRS S2.29(a) IFRS S2.B19 IFRS S2.B30 IFRS S2.B31 IFRS S2.B32 IFRS S2.B34 IFRS S2.B38–B57 IFRS S2.B56(a) IFRS S2.B56(b) | | E1-7 – GHG removals and GHG mitigation projects financed through carbon credits | IFRS S2.36(e) | | E1-8 – Internal carbon pricing | IFRS S2.29(f) | | E1-9 – Anticipated financial effects from material physical and transition risks and potential climate-related opportunities | IFRS S1.21(b) IFRS S2.17 IFRS S2.22(a) IFRS S2.25(b) IFRS S2.29(b) IFRS S2.29(c) IFRS S2.29(d) IFRS S2.31 IFRS S2.B65(e) | In the consolidated management report and, to a greater extent, the sustainability statement (as well as in the audit report and annual accounts), the Group includes information that is equivalent to the requirements under the SASB standards that apply to the financial sector, mainly in relation to 'commercial banking (FN-CB)', but also in relation to other sub-industries such as: 'Asset management and custody activities (FN-AC)', 'consumer finance (FN-CF)', and 'investment banking and intermediation (FN-IB)'. Annual report 2025251 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | ![4.GobCoorp_ENG.jpg]() Corporate governance Annual report 2025252 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | --- | --- | | | | | [1. 2025 overview](#i8dd2c09195614056b7036eee887eca61) | [253](#i8dd2c09195614056b7036eee887eca61) | | [Statement from Glenn Hutchins, Lead Independent](#ia56629b979df4f7a9283db50aa04417b) [Director](#ia56629b979df4f7a9283db50aa04417b) | [253](#ia56629b979df4f7a9283db50aa04417b) | | [1.1 Our board of directors](#i3c1f57a281744500b55bcb939e3877f8) | [254](#i3c1f57a281744500b55bcb939e3877f8) | | [1.2 Engagement with shareholders](#i58f5fcd740fc4533a6b47b0e7d9d7f41) | [255](#i58f5fcd740fc4533a6b47b0e7d9d7f41) | | [1.3 Achievement of our 2025 priorities](#i15ee46ff9d8542d2a009275c447484b6) | [256](#i15ee46ff9d8542d2a009275c447484b6) | | [1.4 Priorities for 2026](#ida16387b3ac44d22a844735afb9517f1) | [259](#ida16387b3ac44d22a844735afb9517f1) | | [2. Ownership structure](#i9528ababb93745f7af166f6cf76c7881) | [260](#i9528ababb93745f7af166f6cf76c7881) | | [2.1 Share capital](#i29c93c56af234f63b0525049652c6d7b) | [260](#i29c93c56af234f63b0525049652c6d7b) | | [2.2 Authority to increase capital](#id119eaf11f044e31802c414a113cd1e8) | [260](#id119eaf11f044e31802c414a113cd1e8) | | [2.3 Significant shareholders](#i2dddca20be54473a92f7a5d7d82c81f5) | [261](#i2dddca20be54473a92f7a5d7d82c81f5) | | [2.4 Shareholders’ agreements](#i5061ad99f45b46dc852d1b9ed01afc2e) | [262](#i5061ad99f45b46dc852d1b9ed01afc2e) | | [2.5 Treasury shares](#i2c06117c32b646b4865d0ea6c4402398) | [262](#i2c06117c32b646b4865d0ea6c4402398) | | [2.6 Stock market information](#i7a4cf0b2d99442eea54af02e52258e76) | [265](#i7a4cf0b2d99442eea54af02e52258e76) | | [3. Shareholders and general meeting](#i10fe26cbfe8647d2b72ca39b15bef333) | [266](#i10fe26cbfe8647d2b72ca39b15bef333) | | [3.1 Shareholder communication and engagement](#i90401e94acd247c6b7a0c65e3721cddf) | [266](#i90401e94acd247c6b7a0c65e3721cddf) | | [3.2 Shareholder rights](#i508444e3c95f4a7ca01ed2e6f8f83ecb) | [268](#i508444e3c95f4a7ca01ed2e6f8f83ecb) | | [3.3 Dividends and shareholder remuneration](#i81e24762c4774f99a06c5939a3731ceb) | [269](#i81e24762c4774f99a06c5939a3731ceb) | | [3.4 2025 AGM](#iec8050e62e504e8786147c708a42111b) | [270](#iec8050e62e504e8786147c708a42111b) | | [3.5 Our next AGM in 2026](#ib7dcf86daa3642ab97b40421d44fde33) | [272](#ib7dcf86daa3642ab97b40421d44fde33) | | [4. Board of directors](#i662cd085269c4560b7ee3235b8513dcc) | [274](#i662cd085269c4560b7ee3235b8513dcc) | | [4.1 Our directors](#if2f6ca634f9d47748ee3d58ee8834820) | [275](#if2f6ca634f9d47748ee3d58ee8834820) | | [4.2 Board composition](#ie7d73f4ba6914d879fa206a69e742d8e) | [283](#ie7d73f4ba6914d879fa206a69e742d8e) | | [4.3 Board functioning and effectiveness](#iaa4546b2075340c6b46fe4360b507701) | [289](#iaa4546b2075340c6b46fe4360b507701) | | [4.4 Executive committee activities in 2025](#ieca96d54adc84c6598ebc62e3b02af63) | [297](#ieca96d54adc84c6598ebc62e3b02af63) | | [4.5 Audit committee activities in 2025](#i4c22f2b95e504b07ade2c1f12b3d4dd8) | [298](#i4c22f2b95e504b07ade2c1f12b3d4dd8) | | [4.6 Nomination committee activities in 2025](#ie4fbf9da7d7b4b94bf43e1aa03e806f5) | [304](#ie4fbf9da7d7b4b94bf43e1aa03e806f5) | | [4.7 Remuneration committee activities in 2025](#i50d9b88e87bf4afa8234decfb1ce859f) | [308](#i50d9b88e87bf4afa8234decfb1ce859f) | | [4.8 Risk supervision, regulation and compliance](#ie1375269681c4349a720ae78d02cc42b) [committee activities in 2025](#ie1375269681c4349a720ae78d02cc42b) | [311](#ie1375269681c4349a720ae78d02cc42b) | | [4.9 Responsible banking, sustainability and culture](#iec8467742d1f46f5a6a5b27be722fa64) [committee activities in 2025](#iec8467742d1f46f5a6a5b27be722fa64) | [315](#iec8467742d1f46f5a6a5b27be722fa64) | | [4.10 Innovation and technology committee activities](#i4780831dcae44b4dbc356ba775d4059e) [in 2025](#i4780831dcae44b4dbc356ba775d4059e) | [318](#i4780831dcae44b4dbc356ba775d4059e) | | [4.11 International advisory board](#i3fb7a9f1c6ff410d852e52d8fba26d53) | [321](#i3fb7a9f1c6ff410d852e52d8fba26d53) | | [4.12 Related-party transactions and other conflicts](#i8b31a21a62dd4ec990b7c5cce7399a8a) [of interest](#i8b31a21a62dd4ec990b7c5cce7399a8a) | [322](#i8b31a21a62dd4ec990b7c5cce7399a8a) | | [5. Senior management team](#i1ccb27f9c085440d95bcbbea0dc6e86b) | [324](#i1ccb27f9c085440d95bcbbea0dc6e86b) | | | | | --- | --- | | | | | [6. Remuneration](#i5cd1d0ac6e7244da9057e02933307f63) | [326](#i5cd1d0ac6e7244da9057e02933307f63) | | [Introduction](#ib23cab575d824971ba17c5e423d73165) | [326](#ib23cab575d824971ba17c5e423d73165) | | [6.1 Principles of the remuneration policy](#iec12f20d121a439ab0291d500ff4a3e2) | [327](#iec12f20d121a439ab0291d500ff4a3e2) | | [6.2 Remuneration of directors for supervisory](#i4a430f47e03c4581b5fcbd634be83009) [and collective decision-making duties: policy](#i4a430f47e03c4581b5fcbd634be83009) [applied in 2025](#i4a430f47e03c4581b5fcbd634be83009) | [327](#i4a430f47e03c4581b5fcbd634be83009) | | [6.3 Remuneration of directors for executive duties](#i09ca84f1456e492ea658de24b22fe04d) | [330](#i09ca84f1456e492ea658de24b22fe04d) | | [6.4 Directors' remuneration policy for 2026, 2027](#i84b385190d8c442c819fae33567b0280) [and 2028](#i84b385190d8c442c819fae33567b0280) | [345](#i84b385190d8c442c819fae33567b0280) | | [6.5 Preparatory work and decision-making for the](#ibda800787fb54091a5d205048ef8f338) [remuneration policy; remuneration committee](#ibda800787fb54091a5d205048ef8f338) [involvement](#ibda800787fb54091a5d205048ef8f338) | [355](#ibda800787fb54091a5d205048ef8f338) | | [6.6 Remuneration of non-director members of senior](#ifbae6e4cfdcb4280bb92b49b425b7b23) [management](#ifbae6e4cfdcb4280bb92b49b425b7b23) | [356](#ifbae6e4cfdcb4280bb92b49b425b7b23) | | [6.7 Prudentially significant disclosures document](#i1bad72ef0ed74c8484d1d792e2d72f5b) | [357](#i1bad72ef0ed74c8484d1d792e2d72f5b) | | [7. Group structure and internal governance](#i85ef1e714c3a4899a909bf4eaab7c91e) | [358](#i85ef1e714c3a4899a909bf4eaab7c91e) | | [7.1 Group structure](#i15a25f884ad448d0aec311bce65a5853) | [358](#i15a25f884ad448d0aec311bce65a5853) | | [7.2 Internal governance system](#ib75001a9887b421c8d35a6a1d85e4e3e) | [358](#ib75001a9887b421c8d35a6a1d85e4e3e) | | [8. Internal control over financial reporting (ICFR)](#ieb9f225df5ac41189d016c00eed440f7) | [361](#ieb9f225df5ac41189d016c00eed440f7) | | [8.1 Control environment](#ice0fd6167f5c4dbda0c27af3327a8dbc) | [361](#ice0fd6167f5c4dbda0c27af3327a8dbc) | | [8.2 Risk assessment in financial reporting](#ie11b4adff037426d9743d14c14955713) | [362](#ie11b4adff037426d9743d14c14955713) | | [8.3 Control activities](#i24f7648bf9c645b1be5d6d8b3487195e) | [362](#i24f7648bf9c645b1be5d6d8b3487195e) | | [8.4 Information and communication](#i6e38993f645d43e98eeaa07a5cf22298) | [364](#i6e38993f645d43e98eeaa07a5cf22298) | | [8.5 Monitoring of system functioning](#ia199d0dd2fdc48dfaa1fa71da79ee9cd) | [364](#ia199d0dd2fdc48dfaa1fa71da79ee9cd) | | [8.6 External auditor report](#idacdb9012efd4d088183aaaa3f211bca) | [365](#idacdb9012efd4d088183aaaa3f211bca) | | [9. Other corporate governance information](#i79e848e8624d41c391a98003afc47236) | [369](#i79e848e8624d41c391a98003afc47236) | | [9.1 Reconciliation with the CNMV’s corporate](#i6a3552107bd74f258aa74e77f6dfc5e7) [governance report model](#i6a3552107bd74f258aa74e77f6dfc5e7) | [369](#i6a3552107bd74f258aa74e77f6dfc5e7) | | [9.2 Statistical information on corporate governance](#i9562a073d05b490cb37425347904d70d) [required by the CNMV](#i9562a073d05b490cb37425347904d70d) | [373](#i9562a073d05b490cb37425347904d70d) | | [9.3 References on compliance with](#i2b526a4176934d8083f27b9d15f12db2) [recommendations of Spain's Corporate](#i2b526a4176934d8083f27b9d15f12db2) [Governance Code](#i2b526a4176934d8083f27b9d15f12db2) | [396](#i2b526a4176934d8083f27b9d15f12db2) | | [9.4 Reconciliation to the CNMV’s remuneration](#i448596a36e3441c4ba4f015ca314fd84) [report model](#i448596a36e3441c4ba4f015ca314fd84) | [398](#i448596a36e3441c4ba4f015ca314fd84) | | [9.5 Statistical information on remuneration required](#id1cb98de765444df84b77fa6ef93ddc5) [by the CNMV](#id1cb98de765444df84b77fa6ef93ddc5) | [399](#id1cb98de765444df84b77fa6ef93ddc5) | Annual report 2025253 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 1. #### 2025overview Statement from Glenn Hutchins, Lead Independent Director | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | GlennHutchins_E.jpg | | Glenn H. Hutchins , Vice Chair and Lead Independent Director | | | | | | "To our shareholders, In 2025, the board remained focused on what matters most: creating shareholder value, allocating capital with discipline, and accelerating the technological transformation of the Group. Capital allocation Our capital allocation strategy is clear: direct resources toward markets where Santander’s connectivity and scale generate the highest returns. This year we took decisive action, completing the sale of Santander Bank Polska and acquiring both TSB in the UK and, in 2026, Webster in the US. These moves strengthen our presence in core markets and position the Group to deliver on the financial targets we laid out at Investor Day. Transformation and technology The board continued to oversee One Transformation, our initiative to build common technology platforms across the Group. We approved a new data and AI corporate framework, designed to improve agility, drive efficiency, and deliver measurable business impact at scale — all while ensuring responsible AI practices. From boardroom operations to enterprise-wide execution, technology is reshaping how Santander competes. Governance and engagement Effective governance underpins everything we do. We strengthened board composition to align with our strategic direction, including the nomination of Deborah Vieitas, Chair of Santander Brasil, who brings deep knowledge of one of our most important markets. As Homaira Akbari steps down from the board, I would like to recognize her service and contribution. We also completed an internal board effectiveness review, which confirmed the strength of our Executive Chair model and its checks and balances while identifying areas for continued improvement. I remain committed to direct engagement with shareholders. In 2025, I conducted productive discussions with investors ahead of our AGM, which will again be held in a fully virtual format — consistent with our ambition to be a technology-first company and to maximize shareholder participation. Looking ahead The board will continue to hold management accountable for disciplined capital allocation, accelerated transformation, and transparent communication with stakeholders. We are confident in the strategy and in the team executing it". Annual report 2025254 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 1.1 Our board of directors #### Appointments In 2025, the board maintained a composition with the skills, experience and diversity required to oversee and drive the Group's strategy, and with an appropriate balance between executive and non-executive directors. Two-thirds of our board members are independent and 40% are women, in line with best corporate governance practices and the Rules and regulations of the board. At its meeting held on 24 February 2026, the board resolved to submit to the 2026 AGM, subject to the relevant regulatory authorization, the appointment of Deborah Vieitas as an independent director, to fill the vacancy of Homaira Akbari, who has informed of her decision not to stand for re-election and to step down as a director following the 2026 AGM. For more details, see sections [3.5 'Our next AGM in 2026'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_502). Deborah Vieitas has an extensive professional track record in banking and financial markets, having held senior executive positions at international and Brazilian institutions. She brings solid experience in corporate banking management and structuring, trade finance, debt markets and structured finance, as well as in the negotiation of complex transactions. Her appointment further strengthens the board’s collective skills, international experience and geographical diversity, as reflected in the board skills and diversity matrix. She also contributes extensive experience in strategy, accounting, auditing and financial expertise, risk management and governance. This appointment is the result of a director succession planning process aligned with the Group’s global scale and risk profile, and with the board composition criteria set out in our Policy for the selection, suitability assessment and succession of directors. It is also consistent with the conclusions and action plan arising from the board’s periodic effectiveness review, which identified the value of incorporating a profile with these characteristics. No other changes have occurred to the board of directors. #### Changes to the committees In 2025, the board made these changes to the composition of its committees to ensure that they remained well equipped to discharge their responsibilities: • Remuneration committee: Antonio Weiss was appointed to the committee on 1 January 2025. • Risk supervision, regulation and compliance committee: José Antonio Álvarez became a member on 1 January 2025. #### Effectiveness Corporate governance is a priority for Santander. We remain confident of the effectiveness of our governance model, which continues to receive strong shareholder support, as evidenced by their high participation in general meetings and strong approval rates for corporate management and the appointment and re- election of directors. We are also aware that governance arrangements need to adapt to evolving business and strategy needs and, therefore, we continue to look for opportunities to improve. We have a strong boardroom culture, and the annual board effectiveness review represents a structured reflection point that enables us to verify the quality and effectiveness of its functioning. It also ensures that the board is able to support and oversee management appropriately through constructive challenge. In 2025, the board conducted its annual effectiveness review internally, with a consensus view that the board and its committees continue to operate effectively. The nomination committee and the board considered areas identified for further improvement, and the resulting action plan was approved in December 2025 (for more details, see ['Board effectiveness review](#ifb2b99624daa4646a71a5fe829ff7983_75730) [in 2025'](#ifb2b99624daa4646a71a5fe829ff7983_75730) in section 4.3). In addition, throughout 2025, the nomination committee monitored the execution of the action plan derived from the 2024 board effectiveness review that, in line with our established cycle, was conducted internally. We are confident that the actions derived from recent reviews will continue to assure the ongoing effectiveness of the board and its committees. #### Remuneration policy The remuneration policy for 2025, 2026 and 2027 obtained strong support from shareholders at our 2025 AGM (96.35% of votes in favour). This policy introduced a number of changes that the board proposed following careful consideration of the opinions of our top shareholders and major proxy advisors. We obtained their feedback during the engagement meetings led by Glenn Hutchins, our Lead Independent Director and remuneration committee chair, to ensure that our remuneration policy continued to align with their expectations. In 2026, 2027 and 2028, the compensation principles and composition will remain the same as in 2025. The remuneration policy submitted to shareholder approval at the 2026 AGM centres on further aligning the remuneration framework with the strategic priorities that we presented at the Investor Day held on 25 February 2026. According to the board, this approach translates into a stable, transparent remuneration framework that aligns well with the new strategy, reinforces pay-for-performance principles, supports long-term performance, and continues to match shareholders’ expectations. In 2026, it is proposed to increase 5% the annual salary and target bonus of the executive directors, in view of the excellent business results and total shareholder return in 2025 (132%), and in order to ensure a competitive remuneration compared to other peer groups. This increase is lower than the one of the average remuneration of the Group’s staff in Spain from 2024 to 2025 on a like for like basis (+6%). As for their variable remuneration in 2026: • As investor feedback suggests, Banco Santander has made strides in simplifying the quantitative and qualitative components of the bonus scorecard to increase clarity and understanding. • The portion of variable remuneration subject to long-term metrics will remain at 40% and metrics related to total shareholder return (TSR), return on tangible equity (RoTE), and sustainability, will be maintained. • 40% will be paid in cash and 60% in instruments, as in 2025. Annual report 2025255 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | As for directors' remuneration in their capacity as such, for 2026 the board, on the remuneration committee's proposal, approved a 5% increase (in respect of 2025) to all the amounts, in view of the most recent market benchmarking analysis we conducted alongside an independent expert. This study concluded that the remuneration received by our directors is competitive, while also identifying room for improvement in line with the peer groups. This remuneration remains within the maximum amount approved by shareholders. | | | | --- | --- | | | | | | For more details, see section [6. 'Remuneration'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_562). | #### 1.2 Engagement with shareholders #### Ongoing engagement In 2025 we continued to combine traditional and virtual channels in our engagement with our more than 3.5 million shareholders. This enabled us to meet their needs and encourage their involvement in our corporate governance. For more details, see '[Shareholder engagement in 2025](#i0a320c1a30f14f91aecc68d4b8db9d34_23682)' in section 3.1. In line with market trends in the format of general shareholder meetings and as part of our commitment to digitalization, we held our 2025 AGM exclusively by remote means. This format ensures equal treatment for all shareholders and offers them the same opportunities to participate, regardless of their location. The high level of participation reflects shareholders’ satisfaction with this option, which the board of directors considered (among other reasons) in its decision to convene the 2026 AGM once again in a fully virtual format (see ['Virtual AGM'](#ib2f28dcd155047f9bc951654cae151a6_4236) in Section 3.5). S #### hareholder remuneration The 2025 shareholder remuneration policy set a target to allocate approximately 50% of the Group's net reported profit (excluding non-cash, non-capital ratios impact items), split almost evenly between cash dividends and share buybacks. Additionally, in 2025 Banco Santander announced the objective to allocate at least EUR 10 billion to share buybacks in relation to the 2025 and 2026 results, as well as expected capital excess. As part of this target, on 29 July 2025 the board resolved to execute a share buyback programme for a maximum amount of EUR 1,700 million (First 2025 Buyback Programme), executed from 31 July to 22 December 2025. Further, on 3 February 2026 the board approved to implement a share buyback programme of up to EUR 5.030 billion (Second 2025 Buyback Programme). Under the shareholder remuneration policy in relation to the 2025 results, 1,830 million euros correspond to c. 25% of the Group’s net reported profit for the second half of 2025. The remaining amount corresponds to an extraordinary buyback of 3,200 million euros, equivalent to approximately 50% of the CET1 capital generated in January 2026 following completion of the sale of 49% of Santander Bank Polska to Erste Group. Once the Second 2025 Buyback Programme has been executed and the complementary cash dividend that is being proposed to the 2026 AGM has been paid, the total shareholder remuneration in relation to the 2025 results will be EUR 7,050 million (approximately 50% of the Group's 2025 net reported profit, excluding non-cash, non-capital ratios impact items), split almost evenly between cash dividends and share buybacks. | | | | --- | --- | | | | | | For more details, see section [3.3 'Dividends and shareholder](#i6ecb2a0d58d04b53bfadfa2a833efaa7_496) [remuneration'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_496). | Annual report 2025256 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 1.3 Achievement of our 2025 priorities The 2024 annual report disclosed the board priorities for 2025. The following chart describes how we delivered on each priority. | | | | | --- | --- | --- | | | | | | 2025 priorities | | How we delivered | | Transformation | | | | To oversee the implementation of our operating model, ensuring that we operate as a truly global-local organization with five global businesses, simplifying processes, reducing costs and improving customer experience by further optimizing our product portfolio. | | The board continued to monitor the Group’s transformation journey, aimed at leveraging the value and potential of the Group’s scale and network effects as a truly global-local organization. Against this backdrop, the board placed particular focus on these areas: • One Transformation: The board continued to oversee the Group’s strategy to simplify the product portfolio and automate processes to serve customers better, facilitate interactions with them, and progress towards our ambition of becoming our customers’ primary bank while increasing transactionality. • Common technology platforms: The board also monitored the development of joint innovative common platforms at Group level that, powered by our global scale, enable process simplification and an enhanced customer experience, while contributing to lower operating costs. • Data & Artificial Intelligence (AI): The board appointed a Group Chief Data & AI Officer (CDAIO), reporting to the Executive Chair, with the mandate to evolve the Group’s data strategy, define the ambition and operating model to embed AI across the organization, and foster a strong data culture and AI expertise. The board approved the associated corporate framework and monitored the execution of the data & AI strategy to harness their full potential as strategic assets within the defined risk appetite. This monitorisation focused on streamlining and optimizing data management and treatment to enhance agility and cost efficiency, ensuring responsible AI practices aligned with applicable regulations and ethical standards, and scaling Group-wide initiatives that generate measurable business impact. These included investment copilots to provide real-time strategic insights, pilots aimed at enhancing customer experience, and AI agents for the automation of back-office processes across our footprint. | | People | | | | To remain focused on attracting and retaining the best talent to fulfil our strategy now and in the future, maintaining our proactive approach to senior management succession planning, based on the Group's strategic needs. | | The board believes that ensuring the right talent and capabilities, as well as attracting and retaining top professionals through a best-in-class employee value proposition, is key to enabling our transformation. Consequently, proactive senior management succession planning continued to be a top priority on the board’s agenda in 2025. Throughout the year, the board emphasized the importance of cultural alignment, collaboration and strong performance as core criteria for all senior appointments, ensuring that they continue to align the Group’s strategic priorities. As part of that, the board monitored the evolution of the leadership teams across global businesses, main subsidiaries and global corporate functions, balancing the importance of developing a strong internal succession pipeline with the need to attract targeted external talent required to deliver our strategic targets. The board enhanced its visibility on the depth of talent within the Group dedicating more time engaging top talent outside of the boardroom, meeting top talent based in the US as part of its visit to this country in 2025. As on previous occasions, the event was both successful and productive, with directors and the top talent participants providing positive feedback. | | Culture | | | | To monitor the embeddedness of agile methodologies and more flexible organizational structures across the Group to promote a more collaborative and multidisciplinary way of working that results in a greater customer focus. | | In 2025, the Group adopted an agile approach in the way we work as a key step towards becoming a global open financial services platform. We designed this approach to make the organization more collaborative, efficient and customer-focused, through multidisciplinary teams across the Group, all within the existing governance framework and associated reporting lines. As part of that, the board approved specific amendments to the Group Subsidiary Governance Model in 2025 to effectively implement these organizational changes and it has monitored their proper execution. | Annual report 2025257 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | 2025 priorities | | How we delivered | | Long-term shareholder value | | | | To promote the generation of long-term and sustainable shareholder value creation through consistent returns growth while maintaining our robust capital management discipline to ensure strong shareholder remuneration and the resources required to deliver our strategy. | | Our share price performed positively in 2025, partially driven by the fact that we continued to deliver against the public targets we announced at the 2023 Investor Day, as follows: • Revenue and customer growth: revenue increased 3.9% in constant euros (0.3% in current euros) up to EUR 62,390 million and customer numbers climbed eight million to 180 million. • Strength: CET1 above 12%, closing the year at 13.5% (vs. 12.83% in 2024), where we have maintained a disciplined capital allocation methodology and prudent risk management, as reflected by the non-performing loan ratio, which improved to 2.91%, remaining at historically low levels, and with a solid cost of risk at 1.15%. • Profitability: Return on tangible equity (RoTE) post-AT1 increased to 16.3%. • Cost discipline: Operating expenses fell by 1%, in line with our public target. As a result, the efficiency ratio improved to 41.2%. • Shareholder remuneration: The remuneration paid to shareholders in 2025 was 10% higher than in 2024. We paid out approximately EUR 3,300 million in a cash dividend (EUR 22.50 cents per share with the right to receive a dividend, of which we paid out EUR 11.00 cents per share in May 2025 and EUR 11.50 cents per share in November 2025), which is a 15% increase on the cash dividend paid out in 2024. Moreover, we also paid out approximately EUR 3,300 million through share buyback programmes. • Total value creation: The Group continued to increase created value for shareholders, achieving an earnings per share (EPS) of EUR 0.91 (+17%) and tangible net asset value (TNAV) per share of EUR 5.76 at year-end 2025. Including cash dividends paid during the year, total value creation (TNAV plus cash dividend per share) rose by 14%. The board also assessed specific inorganic opportunities based on their fit within the Group strategic position and priorities. In 2025, we took a major step in strategic inorganic capital reallocation in line with our shareholder value creation commitment, growing the Group's scale in geographies with highly connected markets as follows: • Poland: The board approved and oversaw the execution of the sale of 49% of Santander Bank Polska to Erste Group, and the agreed strategic cooperation across Corporate & Investment Banking (CIB) and payments. Completion of these transactions resulted in a net capital gain of approximately EUR 1,900 million for the Group. • United Kingdom: The board agreed to acquire 100% of TSB Banking Group plc (TSB) from Banco de Sabadell, S.A. to strengthen Santander’s position in the UK. • United States: The board also agreed to acquire Webster Financial Corporation (Webster) to strengthen Santander US in both scale and profitability. Both transactions, TSB and Webster, which remain subject to the corresponding approvals, are consistent with our strategy to carry out bolt- on acquisitions to accelerate organic growth in the Group’s core markets while adhering to our strict capital hierarchy. | Annual report 2025258 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | 2025 priorities | | How we delivered | | Sustainability goals | | | | To oversee the fulfilment of our sustainability goals by striking a balance between financing our customers in their transition to a low-carbon economy and varying political and regulatory approaches. In addition, we will continue to take care of the sustainability agenda, in line with our purpose to help people and businesses prosper. | | The board continued to monitor the progress made on our sustainability goals. In particular: • We raised or facilitated EUR 34.56 billion in green finance in 2025. • We supported 6.3 million people with financial inclusion initiatives since 2023, reaching our 2025 goal of 5 million half a year in advance. In 2025, our microfinance programmes in Latin America supported 1.8 million entrepreneurs with EUR 1,258.36 million in loans through programs like Prospera, Tuiio and Surgir. • We invested EUR 163.78 million to support the communities in which we operate. In particular, EUR 102.9 million was allocated to support education, employability and entrepreneurship through Santander Universidades. Likewise, in 2025, we continued to help our people and customers in special situations, such as the ones that took place in Valencia and Castilla-La Mancha (Spain) and Bahia Blanca (Argentina), among others. • We progressed towards equality, achieving a greater representation of women in senior positions, reaching 38.5% in 2025. • We closed 2025 with 4,854 persons with disabilities employed within the Group (2.5% of our global workforce), in line with our commitment to boost their inclusion by increasing the number of hires and promotions and fostering accessibility. For more details, see the ['Sustainability statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) ['](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) chapter. | | Governance effectiveness | | | | To enhance the overall effectiveness and composition of the board and its committees, with an appropriate composition and ensuring that their role is discharged in the most tangible and effective manner. | | In 2025, we continued to work on an appropriately refreshed board of directors, ensuring diversity in its broadest sense (gender, geographical provenance, academic background, skills and experience). As part of that, we will shortly welcome Deborah Vieitas, whose appointment has been submitted to the 2026 AGM (subject to regulatory approval), further reinforcing the board's composition to ensure that we are well placed to address the challenges that our business faces and taking into account feedback from previous board effectiveness reviews. In 2025, the nomination committee monitored execution of the action plan derived from the 2024 internal board effectiveness review, which was successfully completed in June 2025. In addition, the board conducted its annual effectiveness review in 2025 internally. The findings of the review concluded that the board and its committees continue to operate effectively and that the board's contribution is highly valuable for management. For more details, see ['Board effectiveness review in](#ifb2b99624daa4646a71a5fe829ff7983_75730) [2025'](#ifb2b99624daa4646a71a5fe829ff7983_75730) in section 4.3. | Annual report 2025259 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 1.4 Priorities for 2026 The board set these priorities for 2026: → Long-term shareholder value and disciplined capital allocation Monitor the execution and achievement of the public targets announced at the 2026 Investor Day by promoting the generation of long-term and sustainable shareholder value creation through consistent returns growth and robust capital management discipline, acting responsibly at all times. → Global-local operating model and transformation Oversee progress with the implementation of our global-local operating model and transformation strategy, with a key focus on delivering structural efficiency and enhancing customer experience through innovative common platforms and an embedded use of AI across the organization. → Risk oversight Continue to identify and mitigate risks within the approved appetite and in line with our risk culture (Risk Pro), with the support of the risk supervision, regulation and compliance committee. Continue to promote our most optimal preparedness for an evolving geopolitical environment and macroeconomic uncertainty, and ensure the effective management of risks arising from strategic initiatives and new technologies, while maintaining strong operational resilience as the Group advances its digital transformation and AI–related strategy. → People & Culture Maintain our proactive approach to talent management and remuneration schemes, ensuring that both continue to evolve to fully reflect the Group´s strategic priorities and future leadership needs. → Governance effectiveness Keep our corporate governance arrangements under constant review to make sure they continue to consider the expectations of supervisors, shareholders, and other stakeholders, with the support of the nomination committee. Continue to enhance the overall effectiveness of the board and its committees with an appropriate composition so that they discharge their role in the most tangible and effective manner. | | | | | --- | --- | --- | | | | | | Aligned with high corporate governance standards | | | | AENORSantander.jpg | | Banco Santander has the highest score in the Spanish Association for Standardisation and Certification's (AENOR) Good Corporate Governance Index (GCGI V2.0), which verifies aspects such as composition and functioning of the board and its committees, shareholders' general meeting, remuneration policy, compliance and transparency. | Annual report 2025260 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 2. Ownership structure → #### Broad and balanced shareholder base → #### A single class of shares → #### Authorized capital consistent with best practice to provide the necessary flexibility #### 2.1 Share capital Our share capital comprises ordinary shares, each with a par value of EUR 0.50. Every share belongs to the same class and carries the same voting, dividend and other rights. We do not have any bonds or securities that can be converted into shares other than the contingent convertible preferred securities (CCPS) mentioned in section [2.2 'Authority to increase capital'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_472) . As at 31 December 2025, Banco Santander's share capital amounted to EUR 7,344,659,751, divided into 14,689,319,502 shares. In 2025, we amended our share capital twice, to reduce it: • First, for the amount of EUR 133,583,475 (c. 1.76% of share capital), under the terms agreed at the 2025 AGM, through the cancellation of the shares repurchased under the second buyback programme that formed part of the shareholder remuneration policy for 2024, which was registered with the Companies Register on 6 June 2025. • Second, by EUR 98,002,935 (c. 1.32% of share capital), under the terms agreed at the 2025 AGM, through the cancellation of the shares repurchased under the First 2025 Buyback Programme. We registered this reduction with the Companies Register on 30 December 2025. Since November 2021, when we completed the first buyback programme of those executed within the framework of the shareholder remuneration policy, Banco Santander has reduced its share capital by c. 15.3% of the outstanding shares as of that date. At the 2026 AGM, the board of directors submitted a share capital reduction proposal to cancel the shares that will be acquired through the Second 2025 Buyback Programme; as well as, if appropriate, a further proposal to cancel the shares that are acquired in any new buyback programme that the board may implement or by other legally permitted means. | | | | --- | --- | | | | | | For more details, see sections [2.5 'Treasury shares'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_481) and [3.5 'Our next AGM](#i6ecb2a0d58d04b53bfadfa2a833efaa7_502) [in 2026'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_502). | We have a diversified and balanced shareholder structure, with 3,518,729 shareholders as at 31 December 2025, broken down by type, geographical origin and number of shares as follows: | | | | --- | --- | | | | | Type of investor | | | | % of share capital | | Board A | 1.33% | | Institutional | 64.52% | | Retail | 34.15% | | Total | 100% | A. Shares owned or represented by directors. For more details, see ['Tenure and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_514) [equity ownership'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_514) in section 4.2 and subsection A.3 in section [9.2 'Statistical](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) [information on corporate governance required by CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625). | | | | --- | --- | | | | | Share capital distribution by geography | | | MapaENG.jpg | | | | | | --- | --- | | | | | Number of shares | | | | % of share capital | | 1-3,000 | 8.60% | | 3,001-30,000 | 14.18% | | 30,001-400,000 | 9.40% | | Over 400,000 | 67.82% | | Total | 100% | #### 2.2 Authority to increase capital Under Spanish law, shareholders at the general meeting have the authority to increase the share capital and may delegate power to the board of directors to increase the share capital by no more than 50%. Our Bylaws are consistent with Spanish law and do not set out special conditions for share capital increases. As at 31 December 2025, our board of directors had received authorization from shareholders to approve or carry out these capital increases: • Authorized capital to 2027: Shareholders at the 2024 AGM granted authorization to the board to increase the share capital on one or more occasions by up to EUR 3,956,394,643 (50% of the capital at the time of that AGM). The board can issue shares for cash consideration with or without pre-emptive rights for shareholders. The board was granted this authorization for three years (until 22 March 2027). Annual report 2025261 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Shares without pre-emptive rights can be issued up to EUR 791,278,928.50 (10% of the capital at the time of the 2024 AGM). However, under Spain's Corporate Enterprises Act, this limit does not apply to capital increases to convert CCPS (which shall be converted into newly-issued shares if the CET1 ratio falls below a predetermined threshold). This authorization was used for the CCPS issue carried out in 2025. • Capital increases approved for contingent conversion of CCPS: We issued contingent convertible preferred securities that qualify as regulatory Additional Tier 1 (AT1) instruments and would be converted into newly-issued shares if the CET1 ratio fell below a predetermined threshold. Each issue was backed by a capital increase approved under the authorization granted to the board by shareholders in force at the time of the CCPS issue. The chart below shows the outstanding CCPS at the time of this report, with details about the capital increase resolutions that back them. Those capital increases are, therefore, contingent and have been delegated to the board of directors. The board is authorized to issue additional CCPS and other convertible securities and instruments in accordance with a resolution passed at the 2023 AGM that allows convertible instruments and securities to be issued for up to EUR 10 billion or an equivalent amount in another currency (under this authorization, two CCPS issues were executed in 2024 and one in 2025). Any capital increase resulting from the conversion of shares and other convertible instruments will occur according to the capital increase authorization made at the time those instruments were issued. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Issues of contingent convertible preferred securities (CCPS) | | | | | | Date of issuance | Nominal amount | Discretionary remuneration per annum | Conversion predetermined threshold | Maximum number of shares in case of conversion A | | 06/05/2021 | USD 1,000 million | 4.75% for the first 6 years | If, at any time, the CET1 ratio of Banco Santander or the Group is lower than 5.125% | 391,389,432 | | 06/05/2021 | EUR 750 million | 4.125% for the first 7 years | 352,278,064 | | 21/09/2021 | EUR 1,000 million | 3.625% for the first 8 years | 498,007,968 | | 16/11/2023 | USD 1,150 million | 9.625% for the first 5 years and 6 months | 447,470,817 | | 16/11/2023 | USD 1,350 million | 9.625% for the first 10 years | 525,291,828 | | 20/05/2024 | EUR 1,500 million | 7% for the first 6 years | 501,672,240 | | 01/08/2024 | USD 1,500 million | 8% for the first 10 years | 461,964,890 | | 02/07/2025 | EUR 1,500 million | 6% for the first 6 years | 331,418,471 | A. The figure corresponds to the maximum number of shares that could be required to cover the conversion of these CCPS, calculated as the quotient (rounded off by default) of the nominal amount of the CCPS issue divided by the minimum conversion price determined for each CCPS (subject to any antidilution adjustments and the resulting conversion ratio). The board submitted the renewal of the authorisations to increase the share capital and to issue convertible securities to vote at the 2026 AGM. | | | | --- | --- | | | | | | For more details, see section [3.5 'Our next AGM in 2026'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_502). | #### 2.3 Significant shareholders As at 31 December 2025, no Banco Santander shareholder individually held over 3% of the voting rights (the minimum threshold provided under Spanish law to issue a mandatory notification of a significant holding in a listed company). Though the following shareholding held by an asset manager was registered with Spain's stock market authority (CNMV) as at 31 December 2025, the shares and financial instruments to whose voting rights the notification refers are being held on behalf of third parties (funds or other investment entities or the portfolios they manage) and none of them exceeds 3% of the voting rights that Banco Santander shares afford. | | | | | --- | --- | --- | | | | | | Significant shareholding as at 31 December 2025 | | | | Date of entry in CNMV register | Shareholder name | % voting rights A | | 04/07/2025 | BlackRock Inc. | 6.861 | | A. Includes voting rights attached to shares and financial instruments. | | | The changes notified to the CNMV in 2025 with regard to significant shareholdings are detailed below: | | | | | | --- | --- | --- | --- | | | | | | | Changes to significant shareholdings in 2025 | | | | | Date of entry in CNMV register | Shareholder name | Previous %A | Subsequent %A | | 04/07/2025 | BlackRock Inc. | 6.875 | 6.861 | | A. Includes voting rights attached to shares and financial instruments. | | | | Though certain custodians appeared in our shareholder registry as holding more than 3% of our share capital as at 31 December 2025, we understand that those shares were held on behalf of other investors, none of whom exceeded that threshold individually. These custodians were State Street Bank (13.90%), Chase Nominees Limited (7.50%), The Bank of New York Mellon Corporation (7.18%), Citibank (6.40%), BNP Paribas (3.74%), Caceis Bank (3.57%) and The Northern Trust (3.06%). There may be some overlap in the holdings declared by these custodians and the abovementioned asset manager. Last, as at 31 December 2025, neither our shareholder register nor the CNMV's register showed any investor who resides in a non- cooperative jurisdiction and holds at least 1% of our voting rights Annual report 2025262 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | (which is the mandatory disclosure threshold applicable to such investors under Spanish law). Our Bylaws and the Rules and regulations of the board of directors set out a regime to analyse and approve transactions with shareholders who hold over 10% of the voting rights. For more details, see section [4.12 'Related-party transactions and other](#i6ecb2a0d58d04b53bfadfa2a833efaa7_556) [conflicts of interest'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_556). #### 2.4 Shareholders’ agreements In February 2006, several persons linked to the Botín-Sanz de Sautuola y O’Shea family entered into a shareholders’ agreement to set up a syndicate for their shares in Banco Santander. The CNMV was informed of the signing of this agreement and the subsequent amendments the parties made. This information can be found on the CNMV website. The main provisions of the agreement are: • Transfer restrictions: Any transfer of Banco Santander shares expressly included in the agreement requires prior authorization from the syndicate meeting (which can freely authorize or reject it), except when the transferee is also a party to the agreement or Fundación Botín. These restrictions apply to the shares they expressly cover under the agreement and to shares subscribed for, or acquired by, syndicate members in exercising any subscription, bonus share, grouping or division, replacement, exchange or conversion rights that pertain or are attributed to, or derive from, those syndicated shares. • Syndicated voting: Under the agreement, the parties will pool the voting rights attached to all their shares so that syndicate members may exercise them and engage Banco Santander in a concerted manner, in accordance with the instructions and the voting criteria and orientation the syndicate establishes. This covers the shares subject to the transfer restrictions mentioned above as well as any voting rights attached to any other Banco Santander shares held either directly or indirectly by the parties to the agreement, and any other voting rights assigned to them by virtue of usufruct, pledge or any other contractual title, for as long as they hold those shares or are assigned those rights. Representation of the syndicated shares is attributed to the syndicate chair, who will be the chair of Fundación Botín (currently Javier Botín, one of our directors and brother of our Group Executive Chair (Ana Botín)). Though the agreement initially terminates on 1 January 2056, it will extend automatically for additional ten-year periods unless one of the parties notifies of its intention not to extend six months before the initial term or any extension period ends. The agreement may only be terminated early if all the syndicated shareholders agree unanimously. As at 31 December 2025, the parties to this agreement held 110,326,647 shares in Banco Santander (0.75% of its capital at such time), which were therefore subject to the voting syndicate. They include 80,355,819 shares (0.55% of its capital by close of 2025) that are also subject to the referred transfer restrictions. Subsection A.7 of section [9.2 'Statistical information on corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) [governance required by CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) contains a list of parties to the shareholders' agreement and the relevant information filed with CNMV. #### 2.5 Treasury shares #### Shareholder approval The acquisition of treasury shares was last authorized at our 2023 AGM, for five years and subject to these provisions: • The treasury shares held cannot exceed 10% of Banco Santander's share capital at any time, which is the legal limit set under Spain's Corporate Enterprises Act. • The acquisition price may not be lower than the par value of the shares, nor exceed by more than 3% the highest of: the price of the last independent transaction or the highest independent offer at that time at the trading venue where the purchase is made. • The purpose of acquiring treasury shares will be discretionary treasury share management, the execution of share buyback programmes, the delivery of these shares under the framework of the employee and director remuneration policy, or any other purpose that the board deems pertinent at any given time. #### Treasury shares policy On 26 February 2024, the board updated the current treasury shares policy, which dictates that Banco Santander may carry out treasury share transactions for these purposes : • Provide liquidity or the supply of securities in the market for Banco Santander shares, which gives this market depth and minimizes any potential temporary imbalances in supply and demand. • Take advantage, for the benefit of all shareholders, of weakness in the share price due to its medium-term outlook. • Meet Grupo Santander's obligations to deliver shares to our employees and directors. • Serve any other purpose authorized by the board within the legal limits and those set at the general meeting. Among other things, the policy also provides for: • The principles to uphold in treasury share trades, which include protecting financial markets' integrity and prohibiting market manipulation and insider trading. • The operational criteria for carrying out treasury share trades, unless in exceptional circumstances as per the policy or carried out through mechanisms, such as buyback programmes, with regulation of their own. These criteria include rules on: • Responsibility for execution of these trades, which falls on the Investments and Holdings department, which is kept separate from the rest of Banco Santander. • Venues: Trades must generally be carried out in regulated markets and in the multilateral trading facilities stipulated in the policy. • Volume limits: Trades must generally not exceed 15% of the average daily trading volume for Banco Santander shares in the previous 30 sessions on the relevant trading venue. Annual report 2025263 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | • Price limits: In general, (a) buy orders should not exceed by more than 3% the highest of (i) the price of the last independent transaction prior to the relevant acquisition, or (ii) the highest independent bid at that time on the trading venue where the purchase is made; and (b) sell orders should not be lower than the lowest of the price of the last trade in the market by independent parties and the lowest sell order price in the order book. • Time limits, including a black-out period that applies (a) during the 15 calendar days prior to the publication of quarterly financial information, and (b) if Banco Santander has decided to delay the disclosure of inside information according to market abuse regulations, until such information is disclosed. In the case of buyback programmes, the specific regulations establish a black-out period of 30 calendar days prior to the publication of annual and semi-annual results, which, however, will not apply when the buyback programme is managed by a third party or when the issuer has a temporary buyback programme in place. • Disclosure to the markets of treasury shares trading. The policy applies to the discretionary trading of treasury shares irrespective of whether they are carried out in regulated markets, in multilateral trading facilities, outside the orders market, either through blocks or through special transactions, or under buyback programmes. Furthermore, buyback programmes shall comply with all the applicable specific regulations, such as those on market abuse and their relevant implementing rules. The policy does not apply to transactions on Banco Santander's shares carried out to hedge market risks or provide brokerage or hedging for customers. The full treasury shares policy is available on Banco Santander's corporate website. #### Execution of the buyback programmes in #### relation to 2024 results We executed two buyback programmes under the 2024 shareholder remuneration policy: • In the first buyback programme, executed from 27 August to 3 December 2024, we acquired 341,781,250 treasury shares (approximately 2.21% of share capital). Under the authorization of the 2024 AGM, on 17 December 2024 the board resolved to reduce Banco Santander’s share capital through the cancellation of the repurchased shares. • In the second buyback programme, executed from 6 February to 2 June 2025, we acquired 267,166,950 treasury shares (approximately 1.76% of share capital). Under the terms agreed at the 2025 AGM, on 2 June 2025 the executive committee, by delegation of the board, resolved to reduce Banco Santander’s share capital through the cancellation of the repurchased shares. For more details, see section [2.1 'Share capital'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_469). #### First 2025 Buyback Programme Under the authorization of the 2023 AGM, and according to the 2025 shareholder remuneration policy, on 29 July 2025 the board resolved to execute the First 2025 Buyback Programme, for a maximum amount of EUR 1,700 million, equivalent to approximately 25% of the Group's net reported profit (excluding non-cash, non-capital ratios impact items) for the first half of 2025 and for which we had already obtained the required regulatory authorization of the European Central Bank (ECB). In the First 2025 Buyback Programme (executed from 31 July to 22 December 2025), we acquired 196,005,870 treasury shares (accounting for approximately 1.32% of Banco Santander’s share capital), at a weighted average price per share of EUR 8.67. On 23 December 2025, the executive committee, by delegation of the board, resolved to reduce the share capital in the amount of EUR 98,002,935 by cancelling the 196,005,870 repurchased shares. | | | | --- | --- | | | | | | For more details on these share capital reductions, see section [2.1 'Share capital'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_469) | #### Second 2025 Buyback Programme Under the same AGM approval, on 3 February 2026 the board resolved to execute the Second 2025 Buyback Programme, for a maximum amount of EUR 5,030 million. The appropriate regulatory authorization had already been obtained and the execution of the programme began on 4 February 2026. Under the shareholder remuneration policy in relation to the 2025 results, 1,830 million euros correspond to c. 25% of the Group’s underlying profit for the second half of 2025. The remaining amount corresponds to an extraordinary buyback of 3,200 million euros, equivalent to approximately 50% of the CET1 capital generated in January 2026 following completion of the sale of 49% of Santander Bank Polska to Erste Group. The board submitted the resolution on the share capital reduction through the cancellation of the shares repurchased under the Second 2025 Buyback Programme to vote at the 2026 AGM. For more details, see section [3.5 'Our next AGM in 2026'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_502). #### Activity in 2025 As at 31 December 2025, Banco Santander and its subsidiaries held 11,077,291 shares, accounting for c. 0.08% of Banco Santander's share capital (compared to 15,529,459 shares, accounting for 0.10% of the share capital as at 31 December 2024). The chart below summarizes the monthly average proportion of treasury shares to share capital throughout 2024 and 2025. Annual report 2025264 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | Monthly average of daily positions in treasury shares | | | | % of Banco Santander’s share capital at month end | | | | | 2025 | 2024 | | January | 0.14% | 1.83% | | February | 0.29% | 0.13% | | March | 0.52% | 0.54% | | April | 1.14% | 0.98% | | May | 1.65% | 1.49% | | June | 0.18% | 1.54% | | July | 0.01% | 0.02% | | August | 0.20% | 0.06% | | September | 0.37% | 0.45% | | October | 0.61% | 0.94% | | November | 0.96% | 1.60% | | December | 1.01% | 1.36% | In 2025, Banco Santander and its subsidiaries' treasury share trades amounted to the following values: | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Acquisitions and transfers of treasury shares in 2025 | | | | | | | | | | | | | Acquisitions | | | | | Transfers | | | | | | EUR (except number of shares) | Number of shares | Total par value | Total cash amount | Average purchase price | | Number of shares | Total par value | Total cash amount | Average purchase price | Profit (loss) net of taxes | | Discretionary trading | 32,601,302 | 16,300,651 | 216,021,000 | 6.63 | | 37,053,470 | 18,526,735 | 188,585,000 | 6.39 | 33,618,000 | | Operations on behalf of clients A | 88,589,623 | 44,294,812 | 578,143,000 | 6.53 | | 88,589,623 | 44,294,812 | 578,143,000 | 6.53 | | | Buyback programmes | 463,172,820 | 231,586,410 | 3,287,000,000 | 7.10 | | N/A | N/A | N/A | N/A | N/A | | Total | 584,363,745 | 292,181,873 | 4,081,164,000 | 6.98 | | 125,643,093 | 62,821,547 | 766,728,000 | 6.48 | 33,618,000 | A. Transactions on Banco Santander's shares to hedge market risks or provide brokerage or hedging for customers. The chart below shows significant changes in treasury shares that required disclosure to the CNMV in the year. Companies must report to the CNMV when purchases of treasury shares exceed 1% of the total voting rights (without discounting transfers) or when there is a change in the number of total voting rights. | | | | | | --- | --- | --- | --- | | | | | | | Significant changes in treasury shares in 2025 A | | | | | | % of voting rights represented by shares | | | | Reported on | acquired since last notice | transferred since last notice | held at reference date of notice | | 25/03/2025 | 1.01% | 0.57% | 0.61% | | 29/04/2025 | 1.00% | 0.16% | 1.45% | | 12/06/2025 B | 1.03% | 0.58% | 0.62% | | 12/06/2025 C | 1.02% | 0.17% | 1.48% | | 12/06/2025 | 0.50% | 1.96% | 0.01% | | 05/11/2025 | 1.07% | 0.26% | 0.82% | A. Percentages calculated over share capital at the date of disclosure. B. It amends report dated 25 March 2025. C. It amends report dated 29 April 2025. #### Transactions with financial instruments The transactions with financial instruments with Banco Santander shares as the underlying asset that Banco Santander carried out of its own accord in 2025 for the purpose of discretionary treasury share management were: • At the end of Q1'25, the delta (i.e. net exposure to share price changes) was equivalent to 1,860,000 shares. These derivatives matured during the financial year. No transactions were executed in Q2'25. In Q3'25, the final position amounted to a delta equalling 3,000,000 shares. • The final position at year end was a positive aggregated delta equalling 3,252,000 shares worth a total of EUR 32,751,000. • The instruments used were total return equity swaps and listed options, to be settled at maturity. Annual report 2025265 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 2.6 Stock market information #### Markets Banco Santander shares are listed on the Spanish stock exchanges (Madrid, Barcelona, Bilbao and Valencia), the New York Stock Exchange as American Depositary Shares (ADS), the London Stock Exchange as Crest Depositary Interests (CDI), the Warsaw Stock Exchange, and in the International Quotation System of the Mexican Stock Exchange. #### Market capitalization and trading As at 31 December 2025, Banco Santander is number one in the eurozone and 14th in the world by market value among financial institutions, with a market capitalization of EUR 147,921 million. 7,573 million Banco Santander shares traded in the year for an effective value of EUR 53,296.1 million and an annualized liquidity ratio of 51%. | | | | | --- | --- | --- | | | | | | The Banco Santander share | | | | 2025 | | 2024 | | Shares (million) | 14,689.3 | 15,152.5 | | Price (EUR) | | | | Closing price | 10.070 | 4.465 | | Change in the price | 126% | 18% | | Maximum for the period | 10.156 | 4.928 | | Date of maximum for the period | 30/12/2025 | 29/04/2024 | | Minimum for the period | 4.255 | 3.563 | | Date of minimum for the period | 02/01/2025 | 30/01/2024 | | Average for the period | 7.315 | 4.352 | | End-of-period market capitalization (EUR million) | 147,921.4 | 67,648.3 | | Trading | | | | Total volume of shares traded (million) | 7,572.7 | 7,712.6 | | Average daily volume of shares traded (million) | 29.7 | 30.1 | | Total cash traded (EUR million) | 53,296.1 | 33,409.9 | | Average daily cash traded (EUR million) | 209.0 | 130.5 | Annual report 2025266 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 3. Shareholders and general meeting → #### One share, one vote, one dividend → #### No takeover defences in our Bylaws → #### High shareholder participation at the general meeting and equal treatment of our shareholders #### 3.1 Shareholder communication #### and engagement #### Policy on communication and engagement with #### shareholders and investors We aim to align our interests with those of our shareholders through sustainable growth and long-term value creation and to maintain the trust of our shareholders and broader society. To achieve this, we: • provide shareholders and investors with information that meets their expectations and upholds our culture and values; and • communicate and engage with them regularly to ensure that senior management and governance bodies consider and understand their views. Our policy on communication and engagement with shareholders and investors, which is available on our corporate website, sets out the principles that govern these activities: • Protection of all shareholders' rights and legitimate interests. We facilitate the exercising of their rights, provide them with information, and give them opportunities to have a say in our corporate governance in an effective and sustainable manner over the long term. • Equal treatment and non-discrimination. We treat shareholders and investors in the same situation equally. • Fair disclosure. We make sure that the information we disclose is transparent, truthful and consistent according to applicable law. • Appropriate information. We report appropriate and relevant information to meet our shareholders’ and investors’ needs and expectations, and make sure it is clear, concise and accurate. • Compliance with laws and corporate governance rules. We comply with the regulations on inside and other material information, and follow the principles of cooperation and transparency with supervisory and regulatory bodies. The policy also sets out: • the roles and responsibilities of the main governance bodies and internal functions involved; • the channels for information disclosure and communication ; and • the ways in which we engage with shareholders and investors. The policy also applies to relations with agents that advise, make recommendations to, or guide our shareholders and investors, such as financial and environmental, social and governance (ESG) analysts, proxy advisors and rating agencies. Moreover, Banco Santander has board-approved frameworks on (i) accounting, financial and management and sustainability information, (ii) responsible banking, and (iii) branding and communications. They set out the general principles, roles and key processes for the communication of financial, non-financial and corporate information, which help ensure that all our shareholders and other stakeholders are properly informed about our strategy, targets and results, as well as about our culture and values. #### Shareholder engagement in 2025 We carried out these activities in 2025 as part of our policy on communication and engagement with shareholders and investors: • The annual general meeting. The ordinary general meeting is the most important annual event for our shareholders. We strive to encourage them to attend and participate, in an informed way. For more details, see ['Participation at general meetings'](#i9ecadc1fbc9f4691a7c73ad08498072a_9888) and ['Right to information'](#i9ecadc1fbc9f4691a7c73ad08498072a_9890) in section 3.2. The annual general meeting is broadcast live on our corporate website, where its full recording is made available afterwards. This enables shareholders who cannot attend, as well as other interested parties, to remain fully informed of the resolutions submitted for approval. We held our 2025 AGM exclusively by remote means. Our remote AGM platform ensures shareholders can fully exercise their rights to attend and participate in real time and virtually, regardless of where they are located. Through the platform, they can follow the live broadcast, vote, make presentations, propose resolutions, see the presentations and proposals of other attendees, and communicate with the notary public. Our high shareholder participation rate at the most recent general meeting (with the second highest quorum in recent years) and the voting results show our commitment to shareholder engagement through general meetings and prove the effectiveness of our electronic means of attendance, delegation and remote voting. For more details, see section [3.4](#i6ecb2a0d58d04b53bfadfa2a833efaa7_499) ['2025 AGM'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_499). As usual, an external auditor reviewed our 2025 AGM procedures, where it verified that our meeting call, preparation, communication and holding of the event were up to standard and certified the security, integrity and consistency of the means available for shareholders to participate. Annual report 2025267 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | • Lead Independent Director meetings with key investors. From November 2025 to the date of publication of this report, our Lead Independent Director held several meetings with institutional investors. Though meetings primarily focused on understanding their concerns about remuneration, they also addressed other topics of interest such as the structure of the board, our sustainability strategy and their opinion on virtual AGMs. In total, he held 14 meetings with 11 large institutional investors, who account for 23.61% of our share capital. • Quarterly results presentation. We present our results at the end of each quarter on the same day we make them public. The presentation can be followed live, via conference call, or streamed on our website. We also release the related quarterly financial report and presentation material on the same day before the markets open. During the presentation, questions can be asked or emailed to investor@gruposantander.com. In 2025, we gave our first, second and third quarter results presentations on 30 April, 30 July and 29 October, respectively. Our fourth quarter results presentation took place on 4 February 2026. The board was informed of investors’ and analysts’ reaction. • Investor days. We hold investor days where we explain our strategy and targets for the next three years to investors and other stakeholders in a broader context than at results presentations and where investors can engage directly with senior management and some board members. We announce these meetings and provide the related documents well in advance. We held our most recent Investor Day in London on 25 February 2026. • Other activities. We are aware that a single communication format cannot meet everyone's needs. That's why in 2025 we carried out the activities detailed in the table below to meet our shareholders' and investors' expectations. | | | | | --- | --- | --- | | | | | | Other activities | | | | → Institutional investor roadshows | | Our Shareholder and Investor Relations team had 1,511 meetings (both in person and virtually) with 520 institutional investors, including 55 meetings focused on ESG matters. We engaged with 41.3% of share capital. | | → Interaction with retail shareholders | | Our Shareholder and Investor Relations team held 219 events (online, in person and hybrid). Attendees accounted for 12.22% of the capital that retail shareholders hold in Spain. Shareholders engaged with the Group’s senior management at several of these events. | | → Studies and surveys | | We received 137,416 shareholder and investor opinions through quality surveys and studies, of which 4,673 corresponded to responses by retail shareholders on Santander's perception. | Communication with proxy advisors and #### other analysts We have always recognized the value our investors place on open dialogue with proxy advisors, ESG analysts and other influential entities. We make sure they understand our corporate governance and sustainability priorities and messages in order to convey them properly to investors. As usual, we continued to engage with the main proxy advisors, providing them with information and explanations about the resolutions that will be submitted for approval at the 2026 AGM so they could make voting recommendations. We also engaged in dialogue with ESG analysts, ensuring that any actions stemming from this dialogue complies with applicable regulations. For more details, see the ['Sustainability statement’](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) chapter. #### Corporate website Our corporate website includes all the information on corporate governance as required by law and, in particular, (i) Banco Santander’s Bylaws, Rules and regulations of the board, Rules and regulations for the general shareholders meeting, and other internal regulations; (ii) information on the board of directors and its committees, as well as directors’ skills and professional biographies; and (iii) all the information related to general meetings. Information on our corporate governance can be found at santander.com/en/shareholders-and-investors/corporate- governance. The contents of our corporate website are not incorporated by reference to this annual report nor should be considered part of it for any purpose. In addition, our corporate website provides extensive institutional, financial and sustainability information about the Group, as well as other information we consider to be of interest to our shareholders and, in general, to all our stakeholders worldwide. Our website's design enables us to be transparent and enhance user experience by providing quality information about Santander. Annual report 2025268 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | --- | --- | | | | | Other channels | | | In order to maximize the dissemination and quality of information, we provide shareholders and investors with an app (Santander Shareholders and Investors), on Android and Apple iOS that offers a broad range of content about the Group. | Foto canales junta.jpg | | | | | We also engage with shareholders through various channels, such as an email address, telephone lines, WhatsApp, a postal service, and a virtual office. | | | | | | We regularly post information about Banco Santander on our official X and LinkedIn accounts. The contents included in these profiles are not incorporated by reference to this annual report nor should be considered part of it for any purpose. | | 3 #### .2 Shareholder rights #### One share, one vote, one dividend Our Bylaws provide for one share class only (ordinary shares). Shares grant all shareholders the same rights. Each of them entitles its holder to one vote and there is no preferential treatment in dividend payouts. The Bylaws fully adhere to the one share, one vote, one dividend principle. #### Voting rights and unrestricted share transfers There are no non-voting or multiple-voting shares, nor limitations to the number of votes a shareholder can cast, or any other restriction on exercising voting rights, except for those prescribed by law or set out in our Bylaws should the acquisition of the shares infringe regulations. There are no quorum or qualified majority requirements other than those prescribed by law. Neither Banco Santander's Bylaws nor any other means restrict the transferability of shares, which is subject only to the restrictions prescribed by law. Furthermore, our Bylaws do not include any neutralization provisions, as set out in Spain's Securities Market Act, which would apply in takeover bids. The shareholders' agreement mentioned in section [2.4](#i6ecb2a0d58d04b53bfadfa2a833efaa7_478) ['Shareholders' agreements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_478)[’](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) contains transfer and voting restrictions on the shares that are subject to it. #### Acquisition of significant shareholdings Because banking is a regulated sector, the acquisition of a significant shareholding or influence in Banco Santander is subject to non-objection by the supervising authority. Furthermore, as Banco Santander is a listed company, any parties wishing to acquire control over it and/or enter into any other cases provided for by law must launch a tender offer for its shares. Such acquisitions are largely regulated by: • Council Regulation (EU) No 1024/2013, of 15 October 2013, conferring specific tasks on the ECB relating to the prudential supervision of credit institutions; • Act 10/2014, of 26 June, on the organization, supervision and solvency of credit institutions and its implementing regulation, Spanish Royal Decree 84/2015, of 13 February; and • Act 6/2023, of 17 March, on Securities Markets and Investment Services. The acquisition of a significant holding in Banco Santander may also require approval by other domestic and foreign regulators with supervisory powers over Banco Santander or its subsidiaries' operations and shares listings, or other actions concerning such regulators or subsidiaries, as well as approval by other authorities pursuant to foreign investment regulations in Spain or other countries where we operate. P #### articipation at general meetings All registered holders of shares found on record at least five days prior to the day of a general meeting are entitled to attend. The requirements and procedures accepted to evidence share ownership and shareholders' right to participate in general meetings are available on our corporate website. Shareholders (or their proxies) can attend general meetings virtually and participate through real-time means of communication, cast their votes, take the floor, propose resolutions and contact the notary public. Our Bylaws allow for general meetings to be virtual-only, without the physical attendance of shareholders or their proxies, provided that we can guarantee their identity and standing and that they can participate effectively in the meeting by remote means of communication, exercise their rights in real time and follow the presentations and proposals of other attendees, considering the state of the art and Banco Santander’s circumstances, particularly the number of shareholders. The electronic shareholders’ forum, available on the corporate website at the time the meeting is called, enables shareholders to add items to the agenda included in the meeting notice, requests for support for their proposals, initiatives to reach the percentage required to exercise minority shareholder rights legally, and offers or requests to act as a voluntary proxy. Supplement to the notice and proposal of #### resolutions Shareholders who account for at least 3% of the share capital are able to request the publication of a supplement to the annual general meeting notice, adding one or more items to the agenda, with an explanation or substantiated resolution proposal and any other relevant documents. Shareholders accounting for at least 3% of the share capital may also propose reasoned resolutions on any matters that have been, or should be, added to the agenda of a called annual general meeting. To exercise these rights, shareholders must send a certified notice to Banco Santander’s registered office within five days after the annual general meeting notice is posted. Any shareholder, irrespective of their stake, can also request the removal of directors or the filing of corporate liability action against any director to be put to a vote at the general meeting, even when not on the agenda. Annual report 2025269 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Right to information From the time the general meeting notice is posted up to and including the fifth day before the date of the general meeting, shareholders can submit any written requests for information or clarification they may deem pertinent, or any written questions they deem relevant to the items on the meeting agenda. In the same manner and within the same period, shareholders can submit written requests for clarification about information Banco Santander has sent to the CNMV since the last general meeting or about auditor’s reports. Banco Santander posts all shareholder- requested information and the answers it provides on its corporate website. Shareholders who attend either in person or virtually may also exercise their right to receive information at the meeting. Where information cannot be given during the course of the meeting, it will be provided in writing within seven days and posted on our corporate website. #### Quorum and majorities for passing resolutions #### at the general meeting The quorum and majorities set out in our Bylaws and Rules and regulations for general meetings in order to hold a valid meeting and adopt corporate resolutions are those provided for under Spanish law. Except for certain matters mentioned below, on first call, shareholders accounting for at least 25% of the subscribed share capital with voting rights must be in attendance for the valid constitution of the general shareholders' meeting. If sufficient quorum is not reached, general meetings will be held on second call, which does not require a quorum. In accordance with our Rules and regulations for general meetings, shareholders voting by remote means, by post or direct delivery or by electronic means before the meeting are counted as present in order to determine the general meeting quorum. With the exception of certain matters mentioned below, general meeting resolutions pass when shareholders attending in person or by proxy cast more votes in favour than against. The quorum and majorities required to amend the Bylaws, issue shares and bonds, make structural changes and vote on other significant resolutions permitted by law are those set out below for amending the Bylaws. Furthermore, in accordance with the laws that apply to credit institutions, if over 50% of the share capital is present at a general meeting, a qualified two-thirds majority is required to raise the proportion of variable remuneration components to fixed components above 100% (up to 200%) for executive directors and other employees whose professional activities have a material impact on the Group's risk profile; otherwise, a three-quarter majority will be necessary. Decisions about acquiring, selling or contributing core assets to another company or similar corporate transactions shall require shareholder approval at general meetings when the law so dictates. Our Bylaws have no further requirements in this regard. #### Rules for amending our Bylaws Shareholders at the general meeting have the authority to approve any amendment to the Bylaws. However, the board can also decide to change the registered office within Spain. The directors or, as applicable, the shareholders who have drafted a proposed amendment to the Bylaws, must write it out in full and prepare a report justifying it, which shall be provided to shareholders at the time the general meeting is called to debate the proposed amendment. The general meeting notice must clearly state the items to be amended as well as the rights of all shareholders to examine the full text of proposed amendments and the related report at Banco Santander’s registered office and to have them delivered free of charge. If shareholders are convened to debate amendments to the Bylaws, the quorum on first call will be reached if 50% of the subscribed share capital with voting rights is in attendance. If sufficient quorum cannot be reached, the general meeting will be held on second call, where 25% of the subscribed share capital with voting rights must be in attendance. When less than 50% of the subscribed share capital with voting rights is in attendance, resolutions on amendments to the Bylaws can only be validly adopted if two-thirds of shareholders attending the meeting in person or by proxy vote for them. However, when 50% or more of the subscribed share capital with voting rights is present, resolutions may pass by way of absolute majority. Resolutions to amend the Bylaws that involve new obligations for shareholders must be accepted by those affected. Bylaw amendments are subject to ECB approval. However, the following amendments do not require authorization but must still be reported to the ECB: a change of registered office within Spain, share capital increases, adding mandatory or prohibitive laws or regulations to the Bylaws, changing the wording in order to comply with court or administrative rulings, and any others the ECB has considered non-material changes in response to prior consultations. #### 3.3 Dividends and shareholder #### remuneration Remuneration in relation to the 2025 results and #### the excess capital The board applied the current shareholder remuneration policy to the 2025 results. This policy sets a target to allocate approximately 50% of the Group's net reported profit (excluding non-cash, non- capital ratios impact items) distributed almost evenly to cash dividends and share buybacks. Additionally, on 5 February 2025, Banco Santander signalled its objective to allocate up to EUR 10 billion to share buybacks in relation to the 2025 and 2026 results, as well as expected capital excess. As part of this target, on 5 May 2025 Banco Santander announced its intention to distribute approximately 50% of the capital that will be released upon completion of the sale of its 49% stake in Santander Bank Polska S.A., through a share buyback of approximately EUR 3.2 billion in early 2026 and that, as a result, it Annual report 2025270 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | could exceed the EUR 10 billion target. Upon announcing the agreements to acquire TSB and Webster on 1 July 2025 and 3 February 2026 respectively, Banco Santander confirmed its goal to distribute at least EUR 10 billion in share buybacks with regard to the 2025 and 2026 results and excess capital. In execution of the above, shareholder remuneration for financial year 2025 comprised the following: • Interim remuneration. • On 30 July 2025, the board resolved to execute the First 2025 Buyback Programme worth up to EUR 1,700 million (equivalent to approximately 25% of the Group's net reported profit in H1’25). For more details, see ['First 2025 Buyback](#i74972a41bd0e4a4d813da306e4585962_9019) [Programme'](#i74972a41bd0e4a4d813da306e4585962_9019) in section 2.5. • On 30 September 2025, the board resolved to pay an interim cash dividend in relation to the 2025 results of 11.5 euro cents per share entitled to the dividend (equivalent to approximately 25% of the Group's net reported profit in H1’25), which was paid from 3 November 2025. • Final remuneration. • On 3 February 2026, the board of directors resolved to implement the Second 2025 Buyback Programme worth up to EUR 5,030 million and for which the required regulatory authorization had been obtained. The programme started on 4 February 2026. Under the shareholder remuneration policy in relation to the 2025 results, 1,830 million euros of the Second Buyback Programme correspond to c. 25% of the Group’s net reported profit for the second half of 2025. The remaining amount corresponds to an extraordinary buyback of 3,200 million euros, equivalent to approximately 50% of the CET1 capital generated in January 2026 following completion of the sale of 49% of Santander Bank Polska to Erste Group. For more details, see ['Second 2025 Buyback Programme'](#i74972a41bd0e4a4d813da306e4585962_9020) in section 2.5. • On 24 February 2026, the board of directors resolved to submit to the 2026 AGM the approval of a final cash dividend in the gross amount of 12.5 euro cents per share entitled to dividend. Subject to AGM approval, the dividend will be payable from 5 May 2026. Once these actions are completed, total shareholder remuneration in relation to the 2025 results will be EUR 7,050 million (approximately 50% of the Group's 2025 net reported profit, excluding non-cash, non-capital ratios impact items), split almost evenly between cash dividends (EUR 3,520 million) and share buybacks (EUR 3,530 million). We have estimated these amounts on the assumption that, as a result of the partial execution of the Second 2025 Buyback Programme, the number of outstanding shares entitled to receive the final cash dividend will be 14,568,470,446. Therefore, the final amount may be higher if fewer shares than planned are acquired in the Second 2025 Buyback Programme; otherwise, it will be lower. Since 2021 and including the total share buyback currently underway, Banco Santander will have returned EUR 16.2 billion to shareholders via share buybacks, and will have repurchased around 18% of its outstanding shares. #### Shareholder remuneration policy The board of directors intends (1) to apply an ordinary shareholder remuneration policy for 2026 to 2028 results that entails allocating approximately 50% of the Group’s underlying profit\* (excluding non-cash, non-capital ratios impact items), split approximately evenly between cash dividends and share buybacks for 2026 results, and (2) to distribute to shareholders any excess capital at the end of the 2026-2028 period. From 2027 results, the ordinary shareholder remuneration policy is expected to comprise around 35% of the Group's underlying profit (on the same basis) in cash dividends and around 15% in share buybacks. For more details, see [‘Remuneration in relation to the 2025 results and the](#i5cba820b4d834ee4b5979a505578691c_29681) [excess capital'](#i5cba820b4d834ee4b5979a505578691c_29681) in this section.] The execution of the ordinary shareholder remuneration policy and the distribution to shareholders of any excess capital at the end of the 2026-2028 period is subject to corporate and regulatory decision and approval. \*  Therefore excluding extraordinary results, such as those arising from the sale of 49% of Santander Bank Polska to Erste Group, the positive capital impact of which we considered for the purposes of the Second 2025 Buyback Programme. #### 3.4 2025 AGM We held our annual general meeting on 4 April 2025, on second call, in a completely virtual format. ![Foto JGA 2025.jpg]() #### Quorum The quorum (among shareholders present and represented) was 68.507%, the second highest in recent years, broken down as follows: | | | | --- | --- | | | | | Quorum breakdown | Share capital with voting rights | | Present | 3.922% | | Virtual attendance | 0.799% | | Remote voting | 3.123% | | By post or direct delivery | 0.551% | | By electronic means | 2.571% | | Represented | 64.585% | | By post or direct delivery | 5.287% | | By electronic means | 59.298% | | Total | 68.507% | | | | Annual report 2025271 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Approved r #### esolutions and voting results All items on the agenda were approved. Votes in favour of the board’s proposals averaged 98.71%. 99.56% of votes approved the corporate management for 2024 and 96.35% of the votes approved the directors' remuneration policy for 2025, 2026 and 2027. See the following summary chart: | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Approved resolutions and voting results at the 2025 AGM | | | | | | | | VOTESA | | | | QuorumD | | | For B | AgainstB | BlankC | AbstentionC | | 1. Annual accounts and corporate management. | | | | | | | 1A. Annual accounts and directors’ reports of Banco Santander, S.A. and of its consolidated group for 2024. | 99.90 | 0.10 | 0.03 | 0.23 | 68.51 | | 1B. Consolidated statement of non-financial information for 2024, which is part of the consolidated directors’ report. | 99.83 | 0.17 | 0.03 | 0.21 | 68.51 | | 1C. Corporate management for 2024. | 99.56 | 0.44 | 0.03 | 1.82 | 68.51 | | 2. Application of results obtained during 2024. | 99.84 | 0.16 | 0.03 | 0.13 | 68.51 | | 3. Board of directors: appointment and re-election of directors. | | | | | | | 3A. Setting of the number of directors. | 99.77 | 0.23 | 0.04 | 0.20 | 68.51 | | 3B. Re-election of Mr. Luis Isasi Fernández de Bobadilla. | 96.89 | 3.11 | 0.03 | 0.20 | 68.51 | | 3C. Re-election of Mr. Héctor Blas Grisi Checa. | 99.36 | 0.64 | 0.04 | 0.19 | 68.51 | | 3D. Re-election of Mr. Glenn Hogan Hutchins. | 97.93 | 2.07 | 0.04 | 0.22 | 68.51 | | 3E. Re-election of Mrs. Pamela Ann Walkden. | 99.60 | 0.40 | 0.04 | 0.20 | 68.51 | | 3F. Re-election of Ms. Ana Botín-Sanz de Sautuola y O'Shea. | 97.80 | 2.20 | 0.03 | 0.38 | 68.51 | | 4. Re-election of the external auditor for financial year 2025. | 99.70 | 0.30 | 0.04 | 0.26 | 68.51 | | 5. Appointment of the verifier of sustainability information for financial year 2025. | 99.69 | 0.31 | 0.04 | 0.25 | 68.51 | | 6. Share capital. | | | | | | | 6A. Reduction in share capital in the maximum amount of EUR 706,871,648, through the cancellation of a maximum of 1,413,743,296 own shares. Delegation of powers. | 99.65 | 0.35 | 0.02 | 0.12 | 68.51 | | 6B. Reduction in share capital in the maximum amount of EUR 757,624,616, through the cancellation of a maximum of 1,515,249,232 own shares. Delegation of powers. | 99.44 | 0.56 | 0.02 | 0.12 | 68.51 | | 7. Remuneration. | | | | | | | 7A. Directors' remuneration policy. | 96.35 | 3.65 | 0.03 | 0.20 | 68.51 | | 7B. Setting of the maximum amount of annual remuneration to be paid to all the directors in their capacity as such. | 97.71 | 2.29 | 0.04 | 0.23 | 68.51 | | 7C. Approval of maximum ratio between fixed and variable components of total remuneration of executive directors and other employees belonging to categories with professional activities that have a material impact on the risk profile. | 99.20 | 0.80 | 0.03 | 0.17 | 68.08 | | 7D. Deferred Multiyear Objectives Variable Remuneration Plan. | 98.40 | 1.60 | 0.04 | 0.22 | 68.51 | | 7E. Application of the Group’s buyout regulations. | 99.21 | 0.79 | 0.04 | 0.23 | 68.51 | | 7F. Annual directors' remuneration report (consultative vote). | 93.27 | 6.73 | 0.04 | 1.15 | 68.51 | | 8. Authorization to the board and grant of powers for conversion into public instrument. | 99.86 | 0.14 | 0.03 | 0.13 | 68.51 | | 9 to 24. Corporate action to demand director liability and dismissal and removal of directors. E | 0.00 | 100.00 | 0.00 | 0.04 | 65.38 | A. Each Banco Santander share grants one vote. B. Percentage of total votes for and against. C. Percentage of total share capital attending the 2025 AGM, either in person or by proxy. D. Percentage over Banco Santander's share capital at the date of the 2025 AGM. E. Items 9 to 24, not included on the agenda, were put to a separate vote. They refer to the proposal to bring of corporate action to demand director liability ( acción social de responsabilidad ) against all directors in office (9) and to the proposal of dismissal and removal of the following directors: Ms. Ana Botín-Sanz de Sautuola y O'Shea (10), Mr. Héctor Blas Grisi Checa (11), Mr. Glenn Hogan Hutchins (12), Mr. José Antonio Álvarez Álvarez (13), Ms. Homaira Akbari (14), Mr. Juan Carlos Barrabés Cónsul (15), Mr. Javier Botín-Sanz de Sautuola y O'Shea (16), Ms. Sol Daurella Comadrán (17), Mr. Henrique de Castro (18), Mr. Germán de la Fuente Escamilla (19), Ms. Gina Lorenza Díez Barroso (20), Mr. Luis Isasi Fernández de Bobadilla (21), Ms. Belén Romana García (22), Mrs. Pamela Walkden (23) and Mr. Antonio Francesco Weiss (24). The full texts of the resolutions passed can be found on our corporate website and on the CNMV’s website, as they were filed as other relevant information on 4 April 2025. Annual report 2025272 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 3.5 Our next AGM in 2026 #### Resolution proposals submitted for shareholder approval The board of directors resolved to call the 2026 AGM on 26 March at first call or on 27 March at second call, and to submit these resolutions for shareholder approval: | | | | | --- | --- | --- | | | | | | | Resolution proposals submitted for shareholder approval at the 2026 AGM | | | | Annual accounts and corporate management | | | | | | | | → To approve the annual accounts and the directors’ reports of Banco Santander and its consolidated Group for 2025. For more details, see ['Consolidated financial statements'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) . → To approve the consolidated non-financial statement for 2025, which forms part of the consolidated directors' report. For more details, see the ['Sustainability statement'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) chapter. → To approve the corporate management for 2025. | | | | | | | | | | | | Shareholder remuneration | | | | | | | | → To approve the allocation of profits obtained by Banco Santander in 2025. For more details, see note [4.a)](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1006) to the consolidated financial statements. → To reduce the share capital of Banco Santander by cancelling: • a maximum of 1,326,455,826 own shares purchased under the Second 2025 Buyback Programme; and • a maximum of 1,468,931,950 own shares acquired through one or more share buyback programmes or by other legally permitted means, authorizing the board of directors to cancel them on one or several occasions within the earliest of one year or the date of the next annual general meeting. For more details, see sections [2.1 'Share capital'](#i4b90da4590114c07956aa4bfa0c8a73e_2540), [2.5 'Treasury shares'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_481) and [3.3 'Dividends and shareholder remuneration'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_496). | | | | | | | | | | | | External auditor and independent verifier | | | | | | | | → To re-elect the firm PricewaterhouseCoopers Auditores, S.L. (PwC) as external auditor for financial year 2026. → To elect PwC as verifier of the sustainability information for financial year 2026. | | | | | | | | | | | | Board of directors: appointments and re-elections | | | | | | | | → To set the number of directors at 15, which is within the range that the Bylaws prescribe. → To appoint Deborah Vieitas and re-elect Sol Daurella, Gina Díez Barroso, Carlos Barrabés and Antonio Weiss for a three-year term. For more details, see section [4.1 'Our directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508). | | | | | | | | | | | | Remuneration (see section [6. 'Remuneration'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_562)) | | | | | | | | → To approve the director's remuneration policy for 2026, 2027 and 2028. → To approve a maximum ratio of 200% of variable components to fixed components of total remuneration for executive directors and certain employees belonging to professional categories that have a material impact on the Group’s risk profile. → To approve the Group's buy-out regulations. → To hold a non-binding vote on the annual directors’ remuneration report. | | | | | | | | | | | | Share capital and convertible securities | | | | | | | | → To authorize the board to increase share capital and exclude pre-emptive rights. → To authorize the board to issue securities that are convertible into shares within a 5-year period and up to a maximum aggregate limit of EUR 10 billion. To set the standards to determine the bases for, and terms and conditions applicable to, the conversion and to grant powers to increase capital and exclude pre-emptive rights. → To increase the share capital by issuing up to 334,809,216 new shares, in exchange for in-kind contributions consisting of common shares of Webster Financial Corporation. Authorize the board to implement the capital increase and determine the share premium. For more details, see sections [2.1 'Share capital'](#i4b90da4590114c07956aa4bfa0c8a73e_2540) and [2.5 'Treasury shares'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_481). | | | | | | Related documents and information are available for consultation on our corporate website from the date the meeting notice is published. Annual report 2025273 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Virtual AGM As with the 2025 AGM, the 2026 AGM will be held as a virtual-only meeting broadcast live from our corporate centre in Boadilla del Monte. Holding the meeting in this format is possible thanks to the legal and statutory authorization to hold this type of meeting and is motivated by these reasons: • The virtual format is effective. The 2025 virtual meeting was characterized by a high level of shareholder engagement, with the second-highest quorum in recent years, an average support of 98.7% for the proposals submitted to vote, and a high level of participation during the meeting, in which shareholders were able to exercise their rights on equal terms from any location. For more details, see section [3.4 '2025 AGM'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_499). • It enhances participation and ensures equal treatment of shareholders... The virtual format guarantees equal treatment for all shareholders and enables their participation and the full exercising of their rights, in line with our commitment to encouraging shareholder engagement in our corporate governance. Considering that Santander has several million shareholders located across different geographies, and only a moderate number of shareholders have traditionally attended general meetings in person when held in a physical or hybrid format, the virtual format enables all shareholders to take part under the same conditions, placing those who can travel and those who cannot on an equal footing. • ...thanks to robust and secure technology, ... Our General Shareholders’ Meeting Platform is fully suited for holding the meeting with the necessary guarantees and safeguards the exercising of shareholders’ rights at the same level as a physical or hybrid meeting. We have been promoting remote participation through this platform for more than two decades; it is technologically proven, and its effectiveness was confirmed again at the 2025 virtual meeting. An external audit certifies the security, integrity and consistency of the means made available to shareholders through the platform. • ...consistent with Santander’s digitalization and sustainability strategy... The virtual format is fully aligned with the Group’s digital transformation, leveraging technology to offer shareholders a simple and secure digital experience while optimizing its resources for shareholders' benefit. It also reflects our commitment to sustainability by reducing the environmental impact associated with the travel of attendees and teams to a physical event, particularly when technology enables an equivalent outcome to be achieved without the need for such travel. • ...and aligned with market trends. The global shift towards fully virtual meetings continues to expand in line with the current digital paradigm. In markets such as the United States, Germany and Norway, this format has become the prevailing practice among large, listed companies. Listed companies in Spain are also increasingly joining this trend. Attendance at the 2026 AGM shall be through the General Shareholders' Meeting Platform accessible on the corporate website santander.com, through the 'General Shareholders' Meeting' site, or on the website juntasantander.com. Since attendance at general meetings is not paid, a general policy in this regard is not necessary. However, Banco Santander offers shareholders that participate in our general meeting a commemorative courtesy gift, as has been tradition for decades. Annual report 2025274 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 4. Board of directors #### A diverse and balanced board → #### 15 directors: 13 non-executive #### and 2 executive → #### Majority of independent #### directors (66.67%) → #### Balanced presence of women #### and men (40%-60%) ![Consejo_final.jpg]() | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 1 Belén Romana Member Non-executive director (independent) ò ò ¢ Cpp | 2 José Antonio Álvarez Vice Chair Non-executive director ò p p | 3 Héctor Grisi CEO Executive director ò p | 4 Ana Botín Executive Chair Executive director ò C p | 5 Glenn Hutchins Vice Chair and Lead Independent Director Non-executive director (independent) ¢ ¢ C pC | 6 Pamela Walkden Member Non-executive director (independent) ò pCŸ | 7 Germán de la Fuente Member Non-executive director (independent) òC p | 8 Javier Botín Member Non-executive director | | | | | | | | | | | 9 Henrique de Castro Member Non-executive director (independent) ò ¢p | 10 Antonio Weiss Member Non-executive director (independent) ¢ | 11 Sol Daurella Member Non-executive director (independent) ¢ ¢ Ÿ C | 12 Homaira Akbari Member Non-executive director (independent) òŸp | 13 Luis Isasi Member Non-executive director ò ¢ p | 14 Gina Díez Barroso Member Non-executive director (independent) ¢Ÿ | 15 Carlos Barrabés Member Non-executive director (independent) ¢Ÿp | 16 Jaime Pérez Renovales Secretario general y del consejo | ò Executive committee ò Audit committee ¢ Nomination committee ¢ Remuneration committee p Risk supervision, regulation and compliance committee Ÿ Responsible banking, sustainability and culture committee p Innovation and technology committee C   Chair of the committee ![siluetas.jpg]() Annual report 2025275 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 4.1 Our directors | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 1AnaBotin2025.jpg | | | | | | | | | | | | | | Board member since 1989. Nationality: Spanish. Born in Santander (Spain) in 1960. Education: Degree in Economics from Bryn Mawr College of Pennsylvania. Experience: Ms Botín joined Banco Santander in 1988, after working at J.P. Morgan in New York (1980-1988). Up to 1998, she held several executive positions and led the Group’s expansion across Latin America. In 2002, she was appointed Executive Chair of Banesto. Between 2010 and 2014, she was CEO of Santander UK plc and was a non-executive director until April 2021. In 2014 she was appointed Executive Chair of Banco Santander. She was also a non-executive director of Santander UK Group Holdings plc (2014-2021) and Chair of the European Banking Federation (2021-2023). Other positions of note: Ms Botín is a member of the board of directors of The Coca-Cola Company and Chair of the Institute of International Finance (IIF). | | She is also founder and Chair of CyD (a foundation that supports higher education) and Fundación Empieza por Educar (the Spanish subsidiary of international NGO Teach For All), and sits on the advisory board of the Massachusetts Institute of Technology (MIT). Positions in other Group companies: Ms Botín is non-executive Chair of Open Bank, S.A., Santander Consumer Finance, S.A., Open Digital Services, S.L., PagoNxt, S.L., Universia España Red de Universidades, S.A. and Universia Holding, S.L.; and is a non-executive director of Santander Holdings USA, Inc. and Santander Bank, N.A. Membership of board committees: Executive committee (Chair) and innovation and technology committee. Skills and competencies: Ms Botín has extensive international experience in top executive roles in banking. She has also led Grupo Santander’s strategic and cultural transformation, and her philanthropy underscores her ongoing commitment to sustainable and inclusive growth. | | | Ana Botín-Sanz de Sautuola y O’Shea EXECUTIVE CHAIR Executive director | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 2HectorGrisi2025.jpg | | | | | | | | | | | | | | Board member since 2023. Nationality: Mexican and Spanish. Born in Mexico City (Mexico) in 1966. Education: Degree in Finance from Universidad Iberoamericana (Mexico City). Experience: Mr Grisi has more than three decades of international banking experience. He joined Grupo Santander in 2015 as Executive Chair and CEO of Banco Santander México and Grupo Financiero Santander México, S.A. de C.V. Between 2019 and 2022, he was Regional Head for North America, overseeing operations in Mexico and the United States. Previously, he spent 18 years at Credit Suisse, where he held several senior management roles that included Head of Investment Banking for Mexico, Central America and the Caribbean, and Chair and CEO of Credit Suisse México. He began his professional career in investment banking at Casa de Bolsa Inverlat, Banco Mexicano and Grupo Finaniero Santander Mexicano. He has also been Vice Chair of Asociación de Bancos de México (ABM) and a member of the boards of Bolsa Mexicana de Valores and Universidad Iberoamericana. Other positions of note: Mr Grisi is non-executive Chair of Cogrimex, S.A. de C.V. | | Positions in other Group companies: Mr Grisi is a non-executive director of Grupo Financiero Santander México, S.A. de C.V. and PagoNxt, S.L. Membership of board committees: Executive committee and innovation and technology committee. Skills and competencies: Mr Grisi stands out for his leadership in business transformation, operational efficiency and digital innovation. He has in-depth knowledge of Group Santander, including its business lines and international strategy, particularly in Mexico and the United States, two of its core markets. He has led the Group through a period of solid growth and modernization, enhancing its competitive position and strengthening investor confidence, while accelerating its transformation into a simpler, more agile and digitally integrated organization. Throughout his career, he has promoted responsible business and sustainability initiatives, especially in the areas of education and support for vulnerable communities. He brings to the board extensive international experience and a proven ability to lead transformation and strengthen connectivity across the Group’s markets, thereby contributing to its geographic and international diversity. | | | Héctor Grisi Checa CHIEF EXECUTIVE OFFICER Executive director | | | | | | | | | | Annual report 2025276 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 3GlennHutchins2023.jpg | | | | | | | | | | | | | | Board member since 2022. Nationality: American. Born in Virginia (US) in 1955. Education: Graduated with an AB, MBA and JD from Harvard University. Experience: Mr Hutchins co-founded US technology and investment firm Silver Lake, where he was CEO until 2011. Prior, he had been a senior managing director at The Blackstone Group (1994-1999) and Thomas H. Lee Co. (1985-1994), and a consultant at Boston Consulting Group. He has also served on the boards of SunGard Data Systems (Chair, 2005-2015), NASDAQ (2005-2017), Virtu Financial (2017-2021) and AT&T (2014-2025). He served as a director and Chair of the audit and risk committees of the Federal Reserve Bank of New York from 2011 to 2021. In addition, he served on the board of the Harvard Management Company, which manages Harvard University’s endowment, and has been a member of the executive committee of the Boston Celtics (2003–2025). Mr Hutchins worked with President Clinton in his transition to power and the White House as special advisor on economic and healthcare policy. | | Other positions of note: Mr Hutchins is non- executive Chair of investment firm North Island Ventures and Lead Independent Director of CoreWeave, Inc. He is a member of the international advisory board and investment board of Singapore’s Government Investment Corporation (GIC), co-Chair of the Brookings Institution, Chair emeritus of not- for-profit organization CARE, and Vice Chair of the Obama Foundation. Membership of board committees: Nomination committee, remuneration committee (Chair), and innovation and technology committee (Chair). Skills and competencies: As a long-time investor in technology and fintech companies, Mr Hutchins has expertise in financial markets and is well-known among investors and stakeholders. He brings to the board his acumen in technology, telecommunications, innovation, finance and investment as well as extensive knowledge of financial regulation as a result of his leadership roles in government, especially with financial regulators and supervisors. He works closely with not-for-profit entities that helps fight poverty and promote inclusion and social justice. | | | Glenn H. Hutchins VICE CHAIR AND LEAD INDEPENDENT DIRECTOR Non-executive director (independent) | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 7JoseAntonioAlvarez2024.jpg | | | | | | | | | | | | | | Board member since 2015. Nationality: Spanish. Born in León (Spain) in 1960. Education: Degree in Economics and Business Administration from the University of Santiago de Compostela and MBA from the University of Chicago. Experience: Mr Álvarez joined Banco Santander in 2002. He was appointed Senior Executive Vice President (director general) and Head of the Financial Management and Investor Relations division in 2004 (Group Chief Financial Officer) and was Group CEO from 2015 to 2022. He has also served as director at SAM Investments Holdings Limited, Santander Consumer Finance, S.A., Santander Holdings USA, Inc., and as non-executive Vice Chair of Banco Santander (Brasil) S.A. In addition, he sat on the supervisory boards of Santander Consumer Bank AG, Santander Consumer Holding GmbH and Santander Bank Polska, S.A. He was also a board member of Bolsas y Mercados Españoles, S.A. | | Other positions of note: Mr Álvarez is an independent director of Aon plc, non-executive Chair of the board of directors of Inbonis, S.A. and a member of the advisory committee of Grupo Buenavista. Positions in other Group companies: Mr Álvarez is a non-executive director of PagoNxt, S.L. Membership of board committees: Executive committee, risk supervision, regulation and compliance committee, and innovation and technology committee. Skills and competencies: Mr Álvarez has had a distinguished career in banking and brings significant strategic and international management expertise, in particular financial planning, asset management and consumer finance, and has vast knowledge of the Group from his tenure as CEO. He also has an established reputation with such key stakeholders as regulators and investors. | | | José Antonio Álvarez Álvarez VICE CHAIR Non-executive director | | | | | | | | | | Annual report 2025277 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 5HomairaAkbari.jpg | | | | | | | | | | | | | | Board member since 2016. Nationality: American and French. Born in Tehran (Iran) in 1961. Education: PhD in Experimental Particle Physics from Tufts University of Massachusetts and MBA from Carnegie Mellon University. Experience: Ms Akbari was a non-executive director of Gemalto N.V. and Veolia Environnement S.A. She was Chair and CEO of SkyBitz, Inc., managing director of TruePosition, Inc., and a non-executive director of Covisint Corporation and US Pack Logistics, LLC. She also held various roles at Microsoft Corporation and Thales Group. She was non-executive Chair of WorkFusion, Inc., an independent director of Temenos AG and a member of the security advisory board of Telefónica Soluciones de Criptografía, S.A.U. Other positions of note: Ms Akbari is CEO of AKnowledge Partners, LLC, a global consultancy firm on the Internet of Things, cybersecurity and AI. She | | is an independent director of Landstar System, Inc. and Babcock & Wilcox Enterprises Inc., and a member of the technology advisory board of Telefónica lnnovación Digital, S.L. She is also a trustee of the French Institute Alliance Française. Positions in other Group companies: Ms Akbari is a non-executive director of PagoNxt, S.L. Membership of board committees: Audit committee, responsible banking, sustainability and culture committee, and innovation and technology committee. Skills and competencies: Ms Akbari brings significant experience of technology companies, and her vast knowledge of digital transformation challenges and cybersecurity is an asset to the board. Moreover, her international experience in diverse regions and knowledge of sustainability matters, especially water, energy and waste management and treatment, are highly valuable to the Group's sustainability policy. | | | Homaira Akbari Non-executive director (independent) | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 10CarlosBarrabes.jpg | | | | | | | | | | | | | | Board member since 2024. Nationality: Spanish. Born in Huesca (Spain) in 1970. Education: Tour Operator Management from the School of Tourism of Aragón and Global Leadership and Public Policy for the XXI Century Program from Harvard Kennedy School. Experience: Mr Barrabés sat on the board of the Santander España business unit and the advisory council of Vodafone. He was also director of the master’s degree in Strategic Design Lab at Istituto Europeo di Design (IED) and of the MBA at Escuela de Organización Industrial (EOI) in Madrid. He was also a trustee of Fundación Ashoka Emprendedores Sociales, founded and sits on the advisory council of Escuela de Negocios del Pirineo (ESPENI), founded and sits on the management board of Épsilon Ecología, Asociación para la Defensa del Medio Ambiente, and is an advisor to Centro de Finanzas Sostenibles y Responsables de España (centre for sustainable and responsible finance, FINRESP). | | Other positions of note: Mr Barrabés is the founder and Chair of Grupo Barrabés, which advises large corporates on digital transformation, innovation, new technologies, e-commerce and the Internet, and SMEs on innovation and using technology efficiently in business processes. He also founded and is a trustee of Fundación Empieza por Educar. Membership of board committees: Nomination committee, responsible banking, sustainability and culture committee, and innovation and technology committee. Skills and competencies: With a lengthy track record as an entrepreneur and e-commerce pioneer, he brings to the board extensive experience in Spain's digital and innovation areas, aimed at the integration of technology in socio-economic development, retail distribution and the promotion of talent, for the benefit of people and institutions. His experience as founder and trustee of multiple non-profit organizations that focus on education, entrepreneurship and environmental protection enriches the board's expertise in responsible business and sustainability. | | | Juan Carlos Barrabés Cónsul Non-executive director (independent) | | | | | | | | | | Annual report 2025278 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 6JavierBotin.jpg | | | | | | | | | | | | | | Board member since 2004. Nationality: Spanish. Born in Santander (Spain) in 1973. Education: Degree in Law from the Complutense University of Madrid. Experience: Mr Botín founded JB Capital Markets, S.V., S.A.U. in 2008 and has been its Executive Chair ever since. He was co-founder and executive director of the equities division of M&B Capital Advisers, S.V., S.A. (2000-2008). Previously, he had been a legal adviser within the International Legal department of Banco Santander (1998-1999). | | Other positions of note: In addition to the financial sector, Mr Botín works with several not-for-profit organizations. He has been Chair of the Botín Foundation since 2014 and is also a trustee of the Princess of Girona Foundation. Skills and competencies: Mr Botín brings international and managerial expertise to the board, particularly in finance and banking. He also brings a deep understanding of Grupo Santander and its strategy from his tenure as a non-executive director. | | | Javier Botín-Sanz de Sautuola y O’Shea Non-executive director | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 14SolDaurella2023.jpg | | | | | | | | | | | | | | Board member since 2015. Nationality: Spanish. Born in Barcelona (Spain) in 1966. Education: Degree in Business and MBA from ESADE. Experience: Ms Daurella sat on the board of Círculo de Economía de Barcelona and was an independent director of Banco Sabadell, S.A., Ebro Foods, S.A. and Acciona, S.A. She was also honorary consul general of Iceland in Barcelona (1992-2021). Other positions of note: Ms Daurella is Chair of Coca-Cola Europacific Partners plc, Executive Chair of Olive Partners, S.A., and holds several roles in Grupo Cobega companies. She is also Vice Chair of the board of trustees of the FERO Oncology Research Foundation and a board member of Instituto de la Empresa Familiar. | | Membership of board committees: Nomination committee, remuneration committee, and responsible banking, sustainability and culture committee (Chair). Skills and competencies: Ms Daurella brings to the board excellent strategy and high-level management skills from her international top- executive experience at listed and large privately- held entities, particularly distributors. She has vast experience of corporate governance as the former Chair of several boards and having served on various committees. As a trustee of various health, education and environmental foundations, she provides responsible business and sustainability insight to the board. | | | Sol Daurella Comadrán Non-executive director (independent) | | | | | | | | | | Annual report 2025279 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 13HenriquedeCastro2023.jpg | | | | | | | | | | | | | | Board member since 2019. Nationality: Portuguese. Born in Lisbon (Portugal) in 1965. Education: Degree in Business Administration from the Lisbon School of Economics & Management and MBA from the University of Lausanne. Experience: Mr de Castro was Chief Operating Officer at Yahoo. Previously, he had been the president of worldwide devices, media and platforms at Google, Head of European sales and business development at Dell, Inc., and a consultant at McKinsey & Company. He was also an independent director at First Data Corporation. | | Other positions of note: Mr de Castro is an independent director of Fiserv, Inc. Positions in other Group companies: Mr de Castro is a non-executive director of PagoNxt, S.L. Membership of board committees: Audit committee, remuneration committee, and innovation and technology committee. Skills and competencies: Mr de Castro brings to the board valuable international experience and a deep understanding of digital transformation and its relevance to financial sector strategy due to his executive roles in the world's top technology companies. | | | Henrique de Castro Non-executive director (independent) | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 4GermanDeLaFuente2024.jpg | | | | | | | | | | | | | | Board member since 2022. Nationality: Spanish. Born in Madrid (Spain) in 1964. Education: Degree in Economics and Business Administration with a diploma in auditing from the Complutense University of Madrid. Experience: Mr de la Fuente has spent his professional career at Deloitte, where he has been Head of the audit business for the financial services industry (2002–2007), managing partner of Audit & Assurance (2007-2021) in Spain, and Chair and CEO of Deloitte, S.L. (2017-2022). He was also a member of the global board of directors of the firm from | | 2012 to 2016 and of the global audit and risk services committee until June 2021. He has been involved in auditing major Spanish financial groups and in multiple consulting and advisory projects. Membership of board committees: Audit committee (Chair) and risk supervision, regulation and compliance committee. Skills and competencies: Mr de la Fuente brings extensive experience in the auditing industry and sound knowledge in auditing, accounting and internal and risk control, as well as in-depth experience in the banking sector, all of which uphold his recognition as a financial expert. | | | Germán de la Fuente Escamilla Non-executive director (independent) | | | | | | | | | | Annual report 2025280 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 8Gina-Diez.jpg | | | | | | | | | | | | | | Board member since 2020. Nationality: Mexican. Born in Mexico City (Mexico) in 1955. Education: Degree in Design from Centro de Diseño of Mexico City. Experience: Ms Díez Barroso was an independent director of Banco Santander México and other Grupo Santander companies in Mexico until 2020. She founded and was non-executive Chair of Grupo Diarq, S.A. de C.V. and member of the board of directors of Dalia Women, S.A.P.I de C.V. (Dalia Empower), Americas Society and Council of the Americas, Laurel Strategies and Qualitas of Life Foundation. She was also a founder and a trustee of the Pro-Educación Centro and Diarq foundations. Other positions of note: Ms Díez Barroso is the founder and non-executive Chair of Centro de Diseño y Comunicación, S.C. (Universidad Centro). | | She is also an independent director of Bolsa Mexicana de Valores (BMV) and of Grupo Axo, S.A.P.I. de C.V, a member of Comité de 200 (C200) and represents Mexico at the W20, the G20 women's initiative to promote gender diversity. Positions in other Group companies: Ms Díez Barroso is a non-executive director of Universia México, S.A. de C.V. Membership of board committees: Nomination committee and responsible banking, sustainability and culture committee. Skills and competencies: Ms Díez Barroso brings to the board vast experience in the real estate and education sectors, and has extensive knowledge of, and an ever-lasting commitment to, sustainability, inclusion and responsible business, having been a founder and trustee of foundations that focus on education, gender diversity and social inclusion. | | | Gina Díez Barroso Azcárraga Non-executive director (independent) | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 12LuisIsasi2024.jpg | | | | | | | | | | | | | | Board member since 2020. Nationality: Spanish. Born in Jerez de la Frontera (Spain) in 1956. Education: Degree in Economics and Business Administration from the University of Sevilla and MBA from Columbia Business School. Experience: Mr Isasi began his career at Abengoa, before holding various executive positions at J.P. Morgan in New York and First National Bank of Chicago in London. In 1987 he joined Morgan Stanley, where he was managing director of investment banking for Europe and Chair and Country Head for Spain (1997-2020) and senior advisor (2020-2023). He has also been director of Madrileña Red de Gas, S.A. and Sociedad Rectora de la Bolsa de Madrid, S.A., as well as an independent director of Grifols, S.A. | | Other positions of note: Mr Isasi is the non- executive (independent) Chair of the board of directors of Logista Integral, S.A. (LOGISTA) and senior advisor to I Squared Capital Advisors (UK) LLP. Positions in other Group companies: Mr Isasi is non-executive Chair of the board of the Santander España business unit. Membership of board committees: Executive committee, remuneration committee, and risk supervision, regulation and compliance committee. Skills and competencies: Mr Isasi has vast experience in a wide range of sectors and international markets (in particular, finance and investment banking) as well as a strong institutional network within Spain. | | | Luis Isasi Fernández de Bobadilla Non-executive director (\*) | | | | | | | | | | | (\*) In the opinion of the nomination committee and the board of directors, Mr Isasi meets the requirements to be considered independent, despite being categorized as 'other external' based on a standard of prudence. For more details, see subsection ['Other external directors'](#i54aff41f6ba94eecbadbaed58547f245_2703) in section 4.2. | | | | | | | Annual report 2025281 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 11BelenRomana2024.jpg | | | | | | | | | | | | | | Board member since 2015. Nationality: Spanish. Born in Madrid (Spain) in 1965. Education: Degree in Economics and Business Administration from Universidad Autónoma de Madrid. She is also a State Economist for Spain. Experience: Ms Romana was formerly director general of Economic Policy, director general of the Treasury of the Spanish Ministry of Economy, and director at Banco de España and the CNMV. She was also a director at the Instituto de Crédito Oficial and other entities on behalf of the Ministry of Economy. She served as a non-executive director at Banesto and as Executive Chair of Sociedad de Gestión de Activos Procedentes de la Reestructuración Bancaria, S.A. (Sareb). She has also been a non- executive director of Aviva plc and Aviva Italia Holding S.p.A., as well as co-Chair of the board of trustees of The Digital Future Society and advisory board member at Inetum, TribalData and Rafael del Pino Foundation. Other positions of note: Ms Romana is an independent director of Industria de Diseño Textil, S.A. (Inditex), SIX Group AG and its subsidiary Bolsas y Mercados Españoles, Sociedad Holding de Mercados y Sistemas Financieros, S.A.U. She is also | | the non-executive Chair of SIX Group AG's other subsidiaries, SIX Digital Exchange AG and SDX Trading AG. Furthermore, she is an independent director of Werfen, S.A.; senior advisor to Artá Capital; and academic director of the IE Leadership & Foresight Hub Programme. Positions in other Group companies: Ms Romana is the non-executive (independent) Chair of Santander Insurance, S.L. Membership of board committees: Executive committee, audit committee, nomination committee (Chair), risk supervision, regulation and compliance committee, and innovation and technology committee. Skills and competencies: Ms Romana is a recognized financial expert given her background as a government economist and overall executive and non-executive experience in finance (particularly from serving on the audit committees of listed companies). Having held key positions in credit institutions and the regulatory and supervisory bodies of the financial industry and securities markets in Spain, she also provides strategic insights into banking, financial regulation and government relations in Spain and Europe. | | | Belén Romana García Non-executive director (independent) | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 15PamelaWalkden.jpg | | | | | | | | | | | | | | Board member since 2019. Nationality: British. Born in Worcester (England) in 1960. Education: Master's Degree in Economics from Cambridge University. Experience: Mrs Walkden has served in a number of senior management positions at Standard Chartered Bank, including as Group Head of Human Resources, Chief Risk Officer, Group Treasurer, Group Head of Asset and Liability Management and Regional Markets, Group Head of Internal Audit, Group Head of Corporate Affairs, and Group Manager of Investor Relations. In addition, she served as an independent member of the UK Prudential Regulation Authority Regulatory Reform Panel, as member of the European Banking Authority Stakeholder Group, and was a lay member of the Welfare and Ethics Committee of the Royal Veterinary College. | | Other positions of note: Mrs Walkden is a member of the advisory board of JD Haspel Ltd. Positions in other Group companies: Mrs Walkden is a non-executive director of Santander UK plc and Santander UK Group Holdings plc. Membership of board committees: Audit committee, risk supervision, regulation and compliance committee (Chair), and responsible banking, sustainability and culture committee. Skills and competencies: Mrs Walkden brings to the board extensive experience in international banking and deep expertise in auditing and risk management, which underscore her recognition as a financial expert. | | | Pamela Walkden Non-executive director (independent) | | | | | | | | | | Annual report 2025282 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 9Antonio_Weiss.jpg | | | | | | | | | | | | | | Board member since 2024. Nationality: American and Italian. Born in New York (US) in 1966. Education: Degree in Comparative Literature from Yale University and MBA from Harvard University. Experience: Mr Weiss was Counselor to the Secretary of the US Department of the Treasury (2015-2017), where he led the Department of Domestic Finance, working on matters related to financial markets, regulatory reform, job creation and economic growth, and senior advisor to the investment company JAB Holdings (2018-2025). He previously held a number of senior management positions at Lazard, including Global Head of Investment Banking, Global Head of Mergers and Acquisitions, and Vice Chair of European Investment Banking. Other positions of note: Mr Weiss is a founder and partner of investment firm SSW Partners, LP. He is a research fellow of the Mossavar-Rahmani Center for Business and Government at the Harvard Kennedy School of Government, a member of the Council on | | Foreign Relations, and a trustee of several non- profit, economic policy organizations, including the Volcker Alliance, the Citizens Budget Commission and the Bretton Woods Committee. He is non- executive director of Société Familiale d'Investissements, S.A. and associate of AFWCo LP. He is a director and former publisher of The Paris Review. Membership of board committees: Remuneration committee. Skills and competencies: Mr Weiss has a lengthy track record in financial services, public policy and non-profit organizations. He also has vast international experience in executive positions in the US, Europe and other regions. Having held senior positions in both the public and private sectors, he contributes an overarching vision of the US market and financial sector to the board, most notably in matters of economic policy. | | | Antonio Francesco Weiss Non-executive director (independent) | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 16Jaime-Renovales.jpg | | | | | | | | | | | | | | Joined the Group in 2003. Nationality: Spanish. Born in Valladolid (Spain) in 1968. Education: Degree in Law and Business Administration from Universidad Pontificia Comillas (ICADE E-3) and State Attorney for Spain. Experience: Mr Pérez Renovales was director of the office of the second deputy Prime Minister for Economic Affairs and Minister of Economy, deputy secretary to the Spanish Prime Minister, Chair of the Spanish State Official Gazette and of the committee for Government Reform. Previously, he had been Vice General Counsel, vice secretary of the board | | and Head of Grupo Santander’s legal department, General Counsel and secretary of the board at Banesto, and deputy director of legal services at the CNMV. He is the Banco Santander representative on the board of trustees of the Princess of Asturias Foundation and is a member of the jury for its award for Social Sciences. He is Chair of the board of trustees of the Fundación Universitaria Comillas- I.C.A.I., and professor of Constitutional Law in the Faculty of Law at Universidad Pontificia Comillas (ICADE). Mr Pérez Renovales is the secretary of every board committee. | | | Jaime Pérez Renovales General Counsel and secretary of the board | | | | | | | | | | Annual report 2025283 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 4.2 #### Board composition #### Size As at 31 December 2025, the board of directors comprised 15 members, whose profile and background are described in section [4.1 'Our directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) . The Bylaws dictate that the board must be composed of no less than 12 and no more than 17 members. Composition by type of director The board of directors has a balanced composition between executive and non-executive directors, most of whom are independent. Each director’s status has been verified by the nomination committee. | | | --- | | | | Our board composition | ![505]() #### Executive directors • Ana Botín, Group Executive Chair • Héctor Grisi, Chief Executive Officer Section 4.3 provides a detailed description of their respective roles and duties under ['Group Executive Chair and Chief Executive](#ifb2b99624daa4646a71a5fe829ff7983_26385) [Officer'](#ifb2b99624daa4646a71a5fe829ff7983_26385). #### Independent directors • Glenn Hutchins (Lead Independent Director) • Homaira Akbari • Carlos Barrabés • Sol Daurella • Henrique de Castro • Germán de la Fuente • Gina Díez Barroso • Belén Romana • Pamela Walkden • Antonio Weiss Every year, the nomination committee verifies the independence of the board members. It considers potentially significant business relations that could affect their independence and other pertinent circumstances. For more details on this analysis, see section [4.6](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538) ['Nomination committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538) and subsection C.1.3 of section [9.2 'Statistical information on corporate governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) [required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625). Independent non-executive directors account for 66.67% of board members. This conforms to best corporate governance practices as well as to the Rules and regulations of the board, which require that the board be predominantly made up of non-executive directors with at least 50% independent directors. #### Other external directors • José Antonio Álvarez • Javier Botín • Luis Isasi These directors are not classified as independent directors for the following reasons: • Mr Álvarez, because he was the CEO of Banco Santander until 31 December 2022. • Mr Botín, because he has been a director for over 12 years. • Mr Isasi, because it is considered preferable to classify him as an external director under prudent criteria, in view of his remuneration as non-executive chair of Santander España in addition to his remuneration as a director and the special nature of this body as supervisor of a business unit without its own corporate identity separate to Banco Santander, despite the nomination committee and the board believing that he meets the requirements to be classed as an independent director. | | | --- | | | | Board tenure | ![2458]() At the end of 2025, the average term of directors was 9.03 years and the average term of independent directors was 5.76 years. For more details, see ['Board skills and diversity matrix'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_520) and ['Tenure and](#i3469a4b05f164a2d92462c398a9ec6eb_0-0-20-12-3384596) [equity ownership'](#i3469a4b05f164a2d92462c398a9ec6eb_0-0-20-12-3384596) in this section 4.2. Annual report 2025284 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | Tenure and equity ownershipA | | | | | | | | | | | | | Board of directors | | | Tenure | | | | Banco Santander shareholding D | | | | | | | | | Date of first appointment B | Date of last appointment | End date C | | Direct | Indirect | Shares represented | Total | % of share capital | | Executive Chair | Ana Botín | | 04/02/1989 | 04/04/2025 | 04/04/2028 | | 2,339,639 | 31,506,972 | — | 33,846,611 | 0.230% | | Chief Executive Officer | Héctor Grisi | | 20/12/2022 | 04/04/2025 | 04/04/2028 | | 2,546,358 | — | — | 2,546,358 | 0.017% | | Vice Chair and Lead Independent Director | Glenn Hutchins | | 20/12/2022 | 04/04/2025 | 04/04/2028 | | 870,165 | — | — | 870,165 | 0.006% | | Vice Chair | José Antonio Álvarez | | 25/11/2014 | 22/03/2024 | 22/03/2027 | | 2,718,974 | — | — | 2,718,974 | 0.019% | | Members | Homaira Akbari | | 27/09/2016 | 31/03/2023 | 31/03/2026 | | 67,826 | 100,913 | — | 168,739 | 0.001% | | Carlos Barrabés | | 22/03/2024 | 22/03/2024 | 22/03/2027 | | 100 | — | — | 100 | 0.000% | | Javier Botín | | 25/07/2004 | 22/03/2024 | 22/03/2027 | | 5,519,047 | 25,603,839 | 157,801,673E | 188,924,559 | 1.286% | | Sol Daurella | | 25/11/2014 | 31/03/2023 | 31/03/2026 | | 149,483 | 476,837 | — | 626,320 | 0.004% | | Henrique de Castro | | 12/04/2019 | 22/03/2024 | 22/03/2027 | | 2,982 | — | — | 2,982 | 0.000% | | Germán de la Fuente | | 01/04/2022 | 22/03/2024 | 22/03/2027 | | 10,000 | — | — | 10,000 | 0.000% | | Gina Díez Barroso | | 22/12/2020 | 31/03/2023 | 31/03/2026 | | 27,000 | — | — | 27,000 | 0.000% | | Luis Isasi | | 03/04/2020 | 04/04/2025 | 04/04/2028 | | 60,000 | — | — | 60,000 | 0.000% | | Belén Romana | | 22/12/2015 | 22/03/2024 | 22/03/2027 | | 13,591 | — | — | 13,591 | 0.000% | | Pamela Walkden | | 29/10/2019 | 04/04/2025 | 04/04/2028 | | 82,608 | — | — | 82,608 | 0.001% | | Antonio Weiss | | 22/03/2024 | 22/03/2024 | 22/03/2027 | | — | — | — | — | 0.000% | | | Total | | | | | | 14,407,773 | 57,688,561 | 157,801,673 | 196,051,396 | 1.335% | | General Counsel and secretary of the board | Jaime Pérez Renovales | | | | | | | | | | | A. Figures as at 31 December 2025. B. The date of first appointment referred to herein may not match with the date of acceptance of the position. C. The date provided does not take into account the additional period that may apply under article 222 of Spain's Companies Act, nor the annual renewal of one-third of the board established in article 55.1 of the Bylaws. For more details, see ['Election, appointment, re-election and succession of directors'](#icd394c0decc149fbb6ec8e814f8464ca_6275) in section 4.2. D. Banco Santander’s shareholding policy aims to align our executive directors and shareholders’ long-term interests. It includes the obligation for each executive director to maintain a significant investment in Banco Santander's shares, equivalent to twice their net annual salary. Executive directors have five years from the time they were appointed to reach the required level of investment. Any shares they receive as remuneration are subject to a mandatory three-year holding period from their date of delivery, unless they already hold the mentioned investment equivalent, in addition to the regulatory obligation not to sell them for one year from delivery, which applies in all cases. E. Includes shares owned by Fundación Botín, chaired by Javier Botín, and syndicated shares, including shares corresponding to Ana Botín that are also included within her direct or indirect shareholdings above, but excluding those corresponding to Javier Botín. For more details, see section [2.4 'Shareholders’ agreements'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_478). We adapted this information to the CNMV’s format in subsection A.3 of section [9.2 'Statistical information on corporate governance required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) . As at 31 December 2025, Ana Botín, Héctor Grisi and José Antonio Álvarez had 1,071,830, 275,384 and 723,421 Banco Santander share options, respectively. Each option has one share as an underlying asset. These options come from the Group's remuneration plans. | | | | --- | --- | | | | | | For more details, see section [9.2 'Statistical information on corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) [governance required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625). | #### Diversity and skills A diverse board of directors is essential to its effectiveness. Mixed skills, experiences and points of view create an environment that promotes independent opinion and constructive debate and ensures proper decision-making. Thus, we seek to achieve a sound balance of technical expertise, experience and broad diversity in the composition of the board. Our policy on the selection, suitability assessment and succession of directors helps make our board more diverse in terms of gender, age, geographical provenance, experience and knowledge. • Gender. The nomination committee and the board of directors understand the importance of fostering equal opportunity between men and women as well as the need for women board members who meet the suitability requirements. In this regard, 40% of our board members are women, in compliance with the gender equality target set by the nomination committee in 2019 and included in the referred policy for women and men to account for between 40% and 60% of the total members of the board. Thus, our board has also met the target (ahead of schedule) set out in Ley Orgánica 2/2024, de 1 de agosto, de representación paritaria y presencia equilibrada de mujeres y hombres (Spain's law on equal representation and balanced presence of women and men), which will require the boards of the 35 companies with the highest market capitalization in Spain to have the least- represented gender account for 40% or more of its members from 30 June 2026. • Age. Our policy also considers that selection must promote age diversity. There are no age limits for becoming a director nor for the roles of chair and chief executive officer. • Geographical provenance/international background. Selection considers cultural diversity, geographical provenance, and international education and experience, especially in the Group's core markets. • Academic background and career. Selection considers candidates' academic training and career history, especially regarding aspects related to our activities or otherwise deemed Annual report 2025285 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | material to the Group, to ensure they are qualified to understand our Group’s businesses, structure and markets, and that they fit within the Santander culture. Moreover, our policy stipulates that board member selection must avoid any implicit bias that could lead to forms of discrimination based on disability, race, ethnic origin or other factors. The policy follows the European Banking Authority (EBA) and European Securities and Markets Authority (ESMA) joint guidelines on the suitability assessment of board members and key functions holders, as well as the ECB's Guide to fit and proper assessments. #### Board skills and diversity matrix The nomination committee keeps a ['Board skills and diversity](#icec967c355564c4198bc2b4ee2300b79_1-0-38-17-3384596) [matrix'](#icec967c355564c4198bc2b4ee2300b79_1-0-38-17-3384596) up to date, which reflects the balance of the knowledge, skills, qualifications, diversity and experience required to pursue our long-term strategy in an ever-changing market. It considers the recommendations of the aforementioned EBA and ESMA joint Guidelines and the ECB's Guide to fit and proper assessments. The matrix follows this structure: • We distinguish between thematic (technical) and horizontal skills. • We include a specific section on diversity that provides information on directors´ gender, geographical provenance/ international background, and age. • We show each member's tenure. The matrix discloses each board member's particular expertise and skills, some of which are further detailed in section [4.1 'Our](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) [directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508), and is a sign of our commitment to transparency. We continuously review the suitability of skills and diversity to ensure a diverse board that can meet the Group's strategic needs. The matrix enables us to pinpoint areas we may need to strengthen in the succession and election of new board members. Last, the ['Committees skills and diversity matrix](#i051a74be2fe34d87854fb94276fa3a19_0-0-38-9-3384596)', which we also update regularly, shows the diverse composition of each committee and members' knowledge and expertise relevant to their committee's remit. Annual report 2025286 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | Board skills and diversity matrix | | | | | | | | | | | | | | | | | | | | Ana Botín | Héctor Grisi | Glenn Hutchins | José Antonio Álvarez | Homaira Akbari | Carlos Barrabés | Javier Botín | Sol Daurella | Henrique de Castro | Germán de la Fuente | Gina Díez Barroso | Luis Isasi | Belén Romana | Pamela Walkden | Antonio Weiss | | Executive Chair | CEO | Vice Chair Lead Independent Director | Vice Chair Non- executive | Independent | Independent | Non- executive | Independent | Independent | Independent | Independent | Non- executive | Independent | Independent | Independent | | SKILLS AND EXPERIENCE | | | | | | | | | | | | | | | | | | THEMATIC SKILLS | | | | | | | | | | | | | | | | | | Banking (100%) | | • | • | • | • | • | • | • | • | • | • | • | • | • | • | • | | Other financial services (80%) | | • | • | • | • | • | | • | | • | • | • | • | • | | • | | Accounting, auditing and financial literacy (100%) | | • | • | • | • | • | • | • | • | • | • | • | • | • | • | • | | Retail (80%) | | • | • | | • | • | • | • | • | • | | • | • | • | • | | | Digital & information technology (53.3%) | | • | • | • | • | • | • | | | • | | | | • | | | | Risk management (86.7%) | | • | • | • | • | • | • | • | • | | • | | • | • | • | • | | Business strategy (100%) | | • | • | • | • | • | • | • | • | • | • | • | • | • | • | • | | Responsible business & sustainability (80%) | | • | • | • | • | • | • | • | • | | | • | • | • | | • | | Human resources, culture, talent & remuneration (93.3%) | | • | • | • | • | • | • | | • | • | • | • | • | • | • | • | | Legal and regulatory (13.3%) | | | | • | | | | | | | | | | • | | | | Governance and control (80%) | | • | • | • | • | • | • | • | • | | • | | • | • | • | | | International experience | Continental Europe (93.3%) | • | • | | • | • | • | • | • | • | • | • | • | • | • | • | | US/UK (86.7%) | • | • | • | • | • | | • | • | • | • | | • | • | • | • | | Latam (60%) | • | • | | • | • | | • | | • | • | • | • | | | | | Others (26.7%) | | | | | | | | • | • | • | | | | • | | | HORIZONTAL SKILLS | | | | | | | | | | | | | | | | | | Top management (100%) | | • | • | • | • | • | • | • | • | • | • | • | • | • | • | • | | Government, regulatory and public policy (20%) | | | | • | | | | | | | | | | • | | • | | Academia and education (40%) | | • | | | | • | • | | • | | | • | | | | • | | Significant directorship tenure (93.3%) | | • | • | • | • | • | • | • | • | • | • | • | • | • | • | | | DIVERSITY | | | | | | | | | | | | | | | | | | Gender | Female (40%) | • | | | | • | | | • | | | • | | • | • | | | Male (60%) | | • | • | • | | • | • | | • | • | | • | | | • | | Geographical provenance/ international background | Continental Europe (93.3%) | • | • | | • | • | • | • | • | • | • | • | • | • | • | • | | US/UK (93.3%) | • | • | • | • | • | | • | • | • | • | • | • | • | • | • | | Latam (60%) | • | • | | • | • | | • | | • | • | • | • | | | | | Others (33.3%) | | | | | • | | | • | • | • | | | | • | | | Age | Under 55 (6.7%) | | | | | | | • | | | | | | | | | | 55 to 65 (73.3%) | • | • | | • | • | • | | • | • | • | | | • | • | • | | Over 65 (20%) | | | • | | | | | | | | • | • | | | | | BOARD TENURE | | | | | | | | | | | | | | | | | | 0 to 3 years (33.3%) | | | • | • | | | • | | | | • | | | | | • | | 4 to 11 years (53.3%) | | | | | • | • | | | • | • | | • | • | • | • | | | 12 years or more (13.3%) | | • | | | | | | • | | | | | | | | | Annual report 2025287 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Committees skills and diversity matrix | | | | | | | | | | | | Executive committee | Audit committee | Nomination committee | Remuneration committee | Risk supervision, regulation and compliance committee | Responsible banking, sustainability and culture committee | Innovation and technology committee | | SKILLS AND EXPERIENCE | | | | | | | | | | THEMATIC SKILLS | | | | | | | | | | Banking | | 100% | 100% | 100% | 100% | 100% | 100% | 100% | | Other financial services | | 100% | 80% | 60% | 80% | 80% | 40% | 87.5% | | Accounting, auditing and financial literacy | | 100% | 100% | 100% | 100% | 100% | 100% | 100% | | Retail | | 100% | 80% | 80% | 60% | 80% | 100% | 87.5% | | Digital and information technology | | 80% | 60% | 60% | 40% | 40% | 40% | 100% | | Risk management | | 100% | 80% | 80% | 80% | 100% | 80% | 87.5% | | Business strategy | | 100% | 100% | 100% | 100% | 100% | 100% | 100% | | Responsible business and sustainability | | 100% | 40% | 100% | 80% | 60% | 80% | 87.5% | | Human resources, culture, talent and remuneration | | 100% | 100% | 100% | 100% | 100% | 100% | 100% | | Legal and regulatory | | 20% | 20% | 40% | 20% | 20% | – | 25% | | Governance and control | | 100% | 80% | 80% | 60% | 100% | 80% | 87.5% | | International experience | Continental Europe | 100% | 100% | 80% | 80% | 100% | 100% | 87.5% | | US/UK | 100% | 100% | 60% | 100% | 100% | 60% | 87.5% | | Latam | 80% | 60% | 20% | 40% | 60% | 40% | 62.5% | | Others | – | 60% | 20% | 40% | 40% | 40% | 12.5% | | HORIZONTAL SKILLS | | | | | | | | | | Top management | | 100% | 100% | 100% | 100% | 100% | 100% | 100% | | Government, regulatory and public policy | | 20% | 20% | 40% | 40% | 20% | – | 25% | | Academia and education | | 20% | 20% | 60% | 40% | – | 80% | 37.5% | | Significant directorship tenure | | 100% | 100% | 100% | 80% | 100% | 100% | 100% | | DIVERSITY | | | | | | | | | | Gender | Female | 40% | 60% | 60% | 20% | 40% | 80% | 37.5% | | Male | 60% | 40% | 40% | 80% | 60% | 20% | 62.5% | | Geographical provenance/international background | Continental Europe | 100% | 100% | 80% | 80% | 100% | 100% | 87.5% | | US/UK | 100% | 100% | 80% | 100% | 100% | 80% | 87.5% | | Latam | 80% | 60% | 20% | 40% | 60% | 40% | 62.5% | | Others | – | 80% | 20% | 40% | 40% | 60% | 25% | | Age | Under 55 | – | – | – | – | – | – | – | | 55 to 65 | 80% | 100% | 60% | 60% | 80% | 80% | 87.5% | | Over 65 | 20% | – | 40% | 40% | 20% | 20% | 12.5% | | BOARD TENURE | | | | | | | | | | 0 to 3 years | | 20% | 20% | 40% | 40% | 20% | 20% | 37.5% | | 4 to 11 years | | 60% | 80% | 60% | 60% | 80% | 80% | 50% | | 12 years or more | | 20% | – | – | – | – | – | 12.5% | Annual report 2025288 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Election, appointment, re-election and #### succession of directors #### Election Our internal policy for the selection, suitability assessment and succession of directors dictates standards for the board’s composition, the process of identifying and selecting candidates, and the suitability assessment of new directors. Directors must meet specific requirements dictated by laws for credit institutions and our Bylaws and must also fulfil the duties of their position prescribed therein and in the Rules and regulations of the board. Our directors must be of renowned business and professional integrity, and have the knowledge and experience needed to perform their role and exercise good governance. Director candidates will also be selected on the basis of their professional contribution to the entire board. The board of directors will endeavour to have significantly more external or non-executive directors than executive directors, and for the number of independent directors to make up at least half of all members. #### Appointment and re-election Shareholders appoint and re-elect directors at the general meeting. Furthermore, if directors step down during their term of office, the board of directors may provisionally designate another director by co-option until the shareholders at the general meeting confirm the appointment at the next meeting. Each appointment, re-election and ratification of directors is submitted to a separate vote at the general meeting. Proposals for the appointment, re-election and ratification of directors (regardless of their category) that the board of directors submits to the general meeting, as well as appointments in the form of co-option, should be preceded by a reasoned proposal by the nomination committee. Proposals to be submitted to the general meeting must include a duly substantiated report by the board that contains an assessment of the candidate's qualifications, experience and merits. Re-election and ratification proposals will also provide an assessment of the work and dedication to the position during the last period in which the proposed director held office. If the board disregards the nomination committee's opinion, it must explain its decision and record its reasons in the meeting minutes. #### Term and cessation Our directors are appointed for three-year terms. However, one- third of board members are renewed each year in order of their tenure, according to the date and order of the respective appointment. Our directors shall cease to hold office when the term for which they were appointed ends, unless they are re-elected, when the general meeting so resolves, or when they resign. When a director ceases to hold office prior to the end of their term (by general meeting resolution or by resignation), they shall explain the reasons for resignation or, for non-executive directors, their opinion on the reasons for their cessation in office by the general meeting, in a letter to the other board members, unless they report them at a board meeting and this is recorded in the minutes. Where relevant to our shareholders, the resignation shall be disclosed publicly, including sufficient information on the reasons or circumstances that the director provides. Directors must tender their resignation to the board and formally step down from their position if the board, on the nomination committee's recommendation, deems it appropriate in cases that may adversely affect the board's functioning or Banco Santander’s credit or reputation. In particular, they must resign if they become ineligible or prohibited by law, without prejudice to the honourability requirements for directors and the consequences deriving from subsequent failure to meet those requirements set out in Spain's Royal Decree 84/2015 that implements Spain's Act 10/2014. Directors must notify the board as soon as possible of any circumstances that affect them, whether related to their performance in Banco Santander or not, that might damage Banco Santander's credit or reputation, especially if under criminal investigation, and of the developments of any such criminal proceedings. When the board is informed or becomes otherwise aware of any such situations, it will examine them as soon as possible and decide, based on the particulars and on a report from the nomination committee, any measures to adopt, such as opening an internal investigation, calling on directors to resign, or proposing their dismissal. Proprietary directors must also tender their resignation when the shareholder they represent sells off or significantly reduces its equity holding. #### Succession planning Succession planning is a key element of our good governance as it ensures orderly role transitions as well as board continuity and stability and its appropriate renewal, composition and independence. Our succession planning follows a well-defined methodology and clear allocation of responsibilities. The aim is to identify candidates with the necessary talent for each function. Banco Santander bases its director succession framework on diversity standards and the policy for the selection, suitability assessment and succession of directors, as well as the regular review of the composition of the board and its committees, and the identification of potential board member candidates. The policy has specific core performance indicators that assess the effectiveness of succession planning (vacancies filled by identified candidates); the number of internal and external candidates immediately available to succeed executive directors; training and development plans for potential candidates to succeed executive directors in one to three years; gender diversity and diversity by geographical provenance or international background; updated board member tenure; the strength of the list of successors to executive directors, committee chairs and the Lead Independent Director, and the percentage of candidates to succeed directors who are immediately available (or candidates for a one-to-three year period). The nomination committee and the board prioritize succession planning, with sound and appropriate plans in place that they revisit frequently to make sure they meet regulatory requirements and align with industry best practice. Annual report 2025289 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 4.3 Board functioning and effectiveness #### Board regulation The board and its committees are governed by the rules set out in the Bylaws and the Rules and regulations of the board, both of which are available on our corporate website. • Bylaws. These dictate the basic rules that apply to the composition and operation of the board and its members' duties, and are supplemented and implemented by the Rules and regulations of the board. They can only be amended by shareholders at the general meeting. For more details, see ['Rules](#i9ecadc1fbc9f4691a7c73ad08498072a_9881) [for amending our Bylaws'](#i9ecadc1fbc9f4691a7c73ad08498072a_9881) in section 3.2. • Rules and regulations of the board. These set the rules for running and internally organizing the board of directors and its committees through the development of applicable laws and Bylaws provisions and good governance recommendations. They set out the principles governing its actions and the duties of its members. The Rules and regulations of the board adhere to all legal provisions as well as to the principles and recommendations set out in the CNMV Good Governance Code for Listed Companies (Spain's Corporate Governance Code), the Corporate Governance Principles for Banks of the Basel Committee on Banking Supervision, and the EBA's in Guidelines on internal governance. Our rules on the audit committee also adhere to the good operating practices set out in the CNMV's Technical Guide 1/2024 on Audit Committees of Public Interest Entities, as well as with the applicable regulations because our shares are listed as ADS on the NYSE and, in particular, with Rule 10A-3 under the Securities Exchange Act on standards relating to audit committees. #### Board functions Banco Santander's board of directors is our highest decision- making body, except in matters reserved to shareholders at the general meeting. It performs its duties with unity of purpose and independent judgement. The board’s policy is to designate executive bodies and managers to run day-to-day operations and implement the strategy. It focuses on general supervision, for which it has certain functions it cannot delegate by law, the Bylaws or the Rules and regulations of the board, including: • strategic plans and management objectives; • general policies, including, among others: capital and liquidity; tax; new products, operations and services; corporate culture and values, which include sustainability; crisis management and resolution planning; risk (including tax risk) control and management; remuneration and compliance; • financial and non-financial reporting and, more generally, information reported to shareholders, investors and the general public, as well as the processes and controls that ensure full disclosure; • policies on reporting and communication with shareholders, markets and public opinion, and supervision of the disclosure of information; • risk culture and management; • internal audit plan; • the selection, succession and remuneration of directors, senior management and other key positions; • effectiveness of Grupo Santander’s corporate and internal governance system, including the GSGM, corporate frameworks and most relevant internal regulations; • significant corporate transactions and investments; • calling the general shareholders’ meeting; and • related-party transactions. The following chart shows the board’s approximate time allocation to each function in 2025. | | | --- | | | | Approximate allocation of time to the board’s activities in 2025 | ![8246337250353]() Annual report 2025290 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Board #### structure and organization The board’s corporate governance structure ensures that it discharges its duties effectively. #### Group Executive Chair and Chief Executive Officer The Executive Chair is Ana Botín and the Chief Executive Officer is Héctor Grisi. They are the most senior executives in the Group’s strategic and ordinary management, which the board is responsible for overseeing, ensuring that their roles are clearly separated and complementary. Both report exclusively to the board. The roles of our Executive Chair and Chief Executive Officer can be summarized as follows: | | | | | --- | --- | --- | | | | | | Roles of the Executive Chair and the Chief Executive Officer | | | | Executive Chair | | Chief Executive Officer | | • The Chair is the highest-ranking executive in Grupo Santander and its main representative with regulators, authorities and other major stakeholders. • The Chair is responsible for the long-term strategy of the Group, including new tech and digital growth engines, namely PagoNxt and Digital Consumer Bank. • The Chair is also responsible for other corporate functions and units that help drive the execution and good governance of the Group's long-term strategy and transformation, comprising T&O, data & AI, people, culture & organization, financial accounting & control, strategy and corporate development, general secretariat, and communications & corporate marketing. • The Chair also leads the appointment and succession planning of Grupo Santander senior management, to be submitted to the nomination committee and board for approval. | | • The Chief Executive Officer is entrusted with the day-to-day management of the business with the highest executive functions and reports exclusively to the board. • Accordingly, the Chief Executive Officer’s direct reports are the senior managers in charge of the business units: the local Chief Executive Officer (CEO)/Country Heads and those in charge of the global businesses (Wealth Management & Insurance, Corporate & Investment Banking, Payments and Retail & Commercial Banking, including transformation A), encompassing the relevant support and control functions. Whilst the Chair is accountable for Digital Consumer Bank, given that it is a global business, the Group CEO remains fully accountable for the Countries through which Digital Consumer Bank operates. • As responsible for day-to-day management, the Chief Financial Officer (CFO) also reports to the Chief Executive Officer. • Additionally, the Chief Executive Officer is responsible for regulatory & supervisory relations and for embedding the Group's sustainability policy in the day-to-day management of Group businesses and the support and control functions. | A. Whilst Retail & Commercial Banking reports directly to the Chief Executive Officer (with no functional line to the Executive Chair), ultimate accountability for transformation remains with the Executive Chair. The duties of the Executive Chair, the Chief Executive Officer, the board, and its committees are clearly separated. Various checks and balances give Grupo Santander’s corporate governance structure the appropriate equilibrium. In particular: • The board and its committees supervise both the Executive Chair and the Chief Executive Officer, both of whom report directly to the board. • The board has delegated all its powers to the Executive Chair and the Chief Executive Officer, except for those that cannot be delegated by law or under the Bylaws or the Rules and regulations of the board. The board directly exercises those powers to perform its general supervisory function. • The Lead Independent Director leads the Group Executive Chair’s succession and assessment in coordination with the nomination committee. • The audit committee is chaired by an independent director who is considered a ‘financial expert’ as defined in Regulation S-K of the Securities and Exchange Commission (SEC). • The audit, nomination, and responsible banking, sustainability and culture committees are chaired by, and fully composed of, independent directors. The remuneration, risk supervision, regulation and compliance, and innovation and technology committees are chaired by, and have a majority of, independent directors. • The Executive Chair may not simultaneously act as Banco Santander’s Chief Executive Officer. • The corporate risk, compliance and internal audit functions report as independent units to a committee or a member of the board of directors and have direct, unfettered access to the board. Annual report 2025291 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Lead Independent Director Our Lead Independent Director is Glenn Hutchins. The Lead Independent Director is key to our corporate governance arrangements. He is responsible for the effective coordination of the non-executive directors and makes sure they serve as an appropriate counter-balance to the executive directors. The following chart shows the Lead Independent Director's functions and activities in 2025. He provides a detailed report to the nomination committee and board of directors on his activities every year. | | | | | --- | --- | --- | | | | | | Duties of the Lead Independent Director and activities during 2025 | | | | Duties | | Activities in 2025 | | Facilitate discussion and open dialogue among independent directors, holding private meetings of non-executive directors without the executive directors present and proactively engaging with them to consider their views and opinions. | | Held five meetings with the non-executive directors where they were able to voice their views and opinions. These meetings provided a valuable opportunity to reflect on the scheduling of board and committee meetings throughout the year, to discuss board training topics, strategy execution, executive director and top management performance and objectives (including the Executive Chair and CEO performance assessments, given their reporting line to the board), and reflections on areas for continuous improvement. The non-executive directors held a meeting with the Chief Executive Officer without the Executive Chair present (and vice versa). | | Direct the regular assessment of the Chair of the board of directors and coordinate her succession plans. | | Led the Executive Chair's annual performance review in order to determine her variable pay. Furthermore, he coordinated her succession planning, facilitated through his membership of the nomination committee. | | Engage with shareholders and other investors to learn of their concerns, especially with regard to Banco Santander's corporate governance. | | For more details on this Lead Independent Director's activity, see section [3.1 'Shareholder communication and engagement'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_490). | | Replace the Chair in her absence, with such key rights as the ability to call board meetings under the terms of the Rules and regulations of the board. | | While the Executive Chair was able to chair all board meetings, the Lead Independent Director assumed the chairship of the board in specific instances where the Executive Chair refrained from participating in the discussions given the nature of the topic being discussed or her potential conflict of interest. | | Request a board meeting or that new items be added to the agenda. | | While the Lead Independent Director did not need to request additional board meetings to be called, he remained fully engaged in, and informed of, board meeting agendas to add additional items as required. | #### Secretary of the board Jaime Pérez Renovales is the secretary of the board. He assists the Chair and ensures the formal and substantial legality of all the board’s actions. He also makes sure that good governance recommendations and procedures are observed and remain under continuous review. The secretary of the board is also the General Counsel of Banco Santander. He acts as the secretary of all board committees and facilitates a fluid and effective relationship between the committees and the Group's units that must collaborate with them. The appointment of the secretary of the board is a matter for the board to approve, taking into account the prior opinion of the nomination committee. The secretary does not need to be a director. The board has two vice secretaries, F. Javier Illescas Fernández- Bermejo (Group Head of Legal) and Adolfo Díaz-Ambrona Moreno (General Counsel of Santander España). They assist the secretary with his duties on the board and its committees, and replace him in the event of absence, inability to act, or illness. Annual report 2025292 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Board #### committees Board committees support the board in three main areas: • Managing the Group by exercising decision-making powers through the executive committee. • Supervising and making important decisions through the audit committee, nomination committee, remuneration committee and risk supervision, regulation and compliance committee. • Formulating strategy for core areas through the responsible banking, sustainability and culture committee, and the innovation and technology committee. The board has seven committees under this structure: | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Mandatory committees A | Executive committee | | Audit committee | | Nomination committee | | Remuneration committee | | Risk supervision, regulation and compliance committee | | | | | | | | | | | | | | | | | | | | | | | | | Decision-making powers | | Supervision, information, advice and recommendations regarding functions in risk, financial reporting and audit, nomination and remuneration matters | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Voluntary committees | Responsible banking, sustainability and culture committee | | Innovation and technology committee | | | | | | | | | | | | | Support and proposal in strategic areas | | | | A. Required by law. #### Board operation The board of directors held 13 meetings (11 ordinary and two extraordinary) in 2025. The Rules and regulations of the board dictate that it must hold at least nine annual ordinary meetings and one quarterly meeting. Board meetings follow a calendar approved annually and a provisional agenda of items to discuss among the matters that fall under its remit, though new items can be added and additional meetings can be called. Directors may also propose items to be added to the agenda and are duly informed of changes to the calendar and meeting agendas. To help directors prepare effectively for each meeting, they are given relevant documents sufficiently in advance and in a secure electronic format. In the board’s opinion, these documents are appropriately detailed and received in good time, which enables members to make appropriate decisions. The Rules and regulations of the board of directors also expressly acknowledge directors’ rights to request and obtain information on anything related to Banco Santander and its domestic and foreign subsidiaries. They also acknowledge their right to inspect the books, files, documents and any other records of corporate transactions, in addition to premises and facilities. Furthermore, directors can request and obtain any information and advice (legal, accounting, financial, or other) they deem necessary through the secretary in order to perform their duties. Additionally, the board meets at the Chair’s discretion or at the request of at least three directors. The Lead Independent Director is also authorized to request a board meeting or for new items to be added to the agenda for a meeting that has already been called. Directors must attend meetings in person, either physically or virtually, and endeavour to limit their absence to situations of absolute necessity. The nomination committee checks that directors attend at least 75% of board and committee meetings and that any absence has a valid excuse without raising doubt about the director's commitment to good governance. For more details, see ['Attendance at board and committee meetings and](#ifb2b99624daa4646a71a5fe829ff7983_26395) [dedication to the performance of duties'](#ifb2b99624daa4646a71a5fe829ff7983_26395) in this section 4.3. If directors are unable to attend a meeting, they can designate (in writing and on a special basis for each session) another director to act on their behalf. Proxies are granted with instructions. Non- executive directors may only be represented by other non- executive directors. A director can hold more than one proxy. The board may meet in various rooms at the same time, provided that members can interact in real time to ensure interactivity and intercommunication via audio-visual means or telephone. Board meetings are validly quorate when more than half of its members attend in person or by proxy. Resolutions are adopted by absolute majority of the directors in attendance. The chair has the casting vote in the event of a tie. The Annual report 2025293 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Bylaws and the Rules and regulations of the board only require the qualified majorities according to law. The secretary of the board keeps the board’s documents on file and records the content of meetings in meeting minutes. Meeting minutes of the board and committees include statements members expressly request to be put on record. Moreover, the secretary oversees the monitoring of the actions that the board and its committees must perform, which the parties responsible for are duly informed of. #### Committee operation Committees follow a calendar and an annual work plan established every year. Each committee meets as often as required to fulfil its duties, with a minimum of four meetings per year, except for the innovation and technology committee, which holds at least three meetings. A committee meeting is quorate if more than half the committee's members attend in person or through an appointed proxy. A committee resolution passes with a simple majority of votes. In the event of a tie, the committee chair has the casting vote. Committee members may appoint a proxy to vote for them and, as in board meetings, non-executive directors can only appoint a non- executive director proxy. Committee members are given relevant meeting materials sufficiently in advance to facilitate suitable meeting preparation and, therefore, promote overall committee effectiveness. Though they cannot vote, any director can attend and participate in meetings of committees on which they do not serve if invited by the chair of the board and the chair of the respective committee, upon request to the chair of the board. Furthermore, all board members who are not executive committee members may attend executive committee meetings at least twice a year, for which they are to be called by the chair. Committees have the authority to summon executives, who will appear at meetings at the invitation of, and under the terms dictated by, the respective chair. Their attendance will be recorded in the meeting minutes. Committees may also submit a request to the General Counsel to hire legal, accounting or financial advisers or other experts to assist with their duties at Banco Santander’s expense. The role of committee secretary is non-voting and falls on the General Counsel and secretary of the board. This fosters a fluid and efficient relationship between the board, its committees and senior management. The board encourages communication and engagement between the committees to boost efficiency and ensure effective coordination in the performance of their respective support duties through, among others, the following mechanisms: • Joint meetings: The committees (mainly the audit committee with risk supervision, regulation and compliance committee and the latter with the remuneration committee) hold joint meetings on topics of mutual interest. • Information to the board: At each board meeting, the committee chairs present on the matters that they have discussed in previous sessions of those committees. They also provide the board members with copies of their committee meeting minutes and all other documents handed out. • Common members between committees: We strive to have board members sit on several committees. • Cross-sectoral review of agendas: A regular review of the work plans of the various committees is carried out to ensure that meeting agendas are complete and coherent. • Informal events: These help leverage informal time between board members, acknowledging the value that this brings to board culture. Annual report 2025294 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Attendance at #### board and committee meetings and dedication to the performance of duties Details of directors' attendance at board and committee meetings in 2025 are set out in the table below. | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Attendance rate at board and committee meetings in 2025 | | | | | | | | | | | | Committees | | | | | | | | Directors | Board | Executive | Audit | Nomination | Remuneration | Risk supervision, regulation and compliance | Responsible banking, sustainability and culture | Innovation and technology | | Average attendance | 99% | 98% | 96% | 96% | 93% | 94% | 95% | 91% | | Individual attendance | | | | | | | | | | Ana Botín | 13/13 | 23/23 | \_ | \_ | \_ | \_ | \_ | 3/4 | | Héctor Grisi | 13/13 | 22/23 | \_ | \_ | \_ | \_ | \_ | 3/4 | | Glenn Hutchins | 13/13 | \_ | \_ | 9/9 | 9/9 | \_ | \_ | 4/4 | | José Antonio Álvarez | 13/13 | 23/23 | \_ | \_ | \_ | 12/14 | \_ | 4/4 | | Homaira Akbari | 13/13 | \_ | 15/15 | \_ | \_ | \_ | 4/4 | 4/4 | | Carlos Barrabés | 13/13 | \_ | \_ | 9/9 | \_ | \_ | 4/4 | 4/4 | | Javier Botín | 12/13 | \_ | \_ | \_ | \_ | \_ | \_ | \_ | | Sol Daurella | 12/13 | \_ | \_ | 9/9 | 9/9 | \_ | 3/4 | \_ | | Henrique de Castro | 13/13 | \_ | 13/15 | \_ | 8/9 | \_ | \_ | 3/4 | | Germán de la Fuente | 13/13 | \_ | 14/15 | \_ | \_ | 14/14 | \_ | \_ | | Gina Díez Barroso | 13/13 | \_ | \_ | 8/9 | \_ | \_ | 4/4 | \_ | | Luis Isasi | 13/13 | 22/23 | \_ | \_ | 9/9 | 12/14 | \_ | \_ | | Belén Romana | 13/13 | 23/23 | 15/15 | 8/9 | \_ | 14/14 | \_ | 4/4 | | Pamela Walkden | 13/13 | \_ | 15/15 | \_ | \_ | 14/14 | 4/4 | \_ | | Antonio Weiss | 13/13 | \_ | \_ | \_ | 7/9 | \_ | \_ | \_ | Note: This table shows each director's in-person attendance at ordinary and extraordinary board or committee meetings. The table does not take into account the approval of resolutions in writing without a meeting (on one occasion by the board of directors, on one occasion by the executive committee, on two occasions by the nomination committee and on one occasion by the responsible banking, sustainability and culture committee) nor meetings at which directors attended by proxy. The nomination committee was informed of directors’ excused absences and verified that they raised no doubt about their capability of good governance. In execution of the action plan derived from the 2024 board effectiveness review, we conducted, among other actions, a detailed analysis of the frequency and duration of board and committee meetings to identify opportunities for streamlining. As a result of this exercise, specific simplification measures were implemented, which reduced the number of meetings in 2025 while ensuring that the effectiveness of the performance of their respective functions—and, in particular, appropriate oversight and control—was not affected. These adjustments have enhanced the effectiveness of the functioning of the board and its committees. According to a benchmark conducted with the support of an independent expert, the number of meetings held by the board and its committees is close to the average for a group of comparable entities. A comparison is also provided with the average number of meetings held by the board and its committees in listed companies across different sectors in Spain (100 entities, including Ibex 35) and in the United States (S&P 500). The differences observed are mainly attributable to the Group’s global scale, size and level of capitalisation, as well as to the specific regulatory and supervisory framework applicable to the European banking sector. The frequency of meetings at Banco Santander reflects a robust corporate governance model that is appropriate for sound management and effective oversight and control. | | | | | | --- | --- | --- | --- | | | | | | | Comparison of number of meetings held A | | | | | | Banco Santander | Spain average | US average | | Board | 13 | 11.4 | 7.1 | | Executive committee | 23 | 7.4 | NA | | Audit committee | 15 | 8.9 | 8.1 | | Nomination committee | 9 | 7.1 | 4.7 | | Remuneration committee | 9 | 7.1 | 5.6 | | Risk supervision, regulation and compliance committee | 14 | 12.4 | NA | A. Source: Spencer Stuart Board Index 2025 (Spain and United States). NA: Not available. Annual report 2025295 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | The following table shows the time a non-executive director devoted to perform their duties as member of the board and each board committee in 2025, in line with the analysis of directors' time availability carried out during their annual suitability assessment. It includes the time estimated for preparing and attending the board and committees' ordinary and extraordinary meetings, as well as for preparing the approval of resolutions without a meeting being held. Dedication is higher for each chair given their additional functions. Likewise, the time devoted to the board member role includes participation in the annual training and development programme for directors, meetings with the Lead Independent Director, and time allocated to other activities that enable greater interaction between directors. This estimate has been prepared in line with the applicable principles of good governance, on the understanding that the time each director individually devotes to the performance of their duties, to being informed, and to understanding the Group’s business and its development may vary. For the purposes of this table, travelling time has not been considered as it varies for each director and the table does not show individual data: | | | | | --- | --- | --- | | | | | | Time dedication to perform the duties of a board and board committee member in 2025 | | | | | Days per year and memberA | Days per year and chair A | | Board | 27.9 | 49.8 | | Executive committee | 17.6 | 35.3 | | Audit committee | 18.8 | 37.5 | | Nomination committee | 5.0 | 10.0 | | Remuneration committee | 4.5 | 9.0 | | Risk supervision, regulation and compliance committee | 17.5 | 35.0 | | Responsible banking, sustainability and culture committee | 2.8 | 5.6 | | Innovation and technology committee | 2.0 | 4.0 | A. Number of days calculated considering 8-hour working days. Directors must report to the nomination committee any professional activity or role that they are proposed to perform outside the Group so that the committee can check that they can dedicate enough time to the Group and that the professional activity or role does not pose conflicts of interest. The annual suitability reassessment our nomination committee conducts (see section [4.6 'Nomination committee activities in](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538) [2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538)) enables us to update information on the estimated time directors dedicate to roles or professional activities outside the Group and demonstrates their ability to exercise good governance. This makes sure the number of board roles that our directors have at once is within the legal limit (i.e. no more than one executive and two non-executive roles, or four non-executive roles; roles in the same group are considered a single role and roles in not-for- profit or non-commercial organizations -such as, among others, organizations for the sole purpose of managing private economic interests- are not included). #### Director training and development programmes The board has an annual training and development programme to help directors continue to develop skills and increase their understanding of the Group and industry, taking into account their experience and expertise. The board selects contents every year based on feedback from its members and supervisory and regulatory requirements, among others. Programme workshops are delivered collectively to all board members and in 2025 covered these topics: • model risk; • cybersecurity and resilience; • sustainability; • agile methodology and new ways of working; • cryptoassets; • financial crime and anti-money laundering; and • data and AI. Directors can also request one to one and ad-hoc training on specific topics tailored to their own needs, if deemed helpful. The objective is to enable directors to deep dive into specific areas in order to ensure that their knowledge is optimal and up to date. The board has robust induction programmes so new directors can deeply understand the industry and Grupo Santander’s business model and structure, risk profile and governance arrangements, taking into account their existing skills, competencies and knowledge. They are completed within six months after taking up their position as new directors and include document reviews, tailored meetings, site visits and training sessions with senior managers of the Group, as appropriate. In addition, every board member receives a directors' manual. It is a support guide that provides both new and existing directors with a complete reference of information relevant to their role. Banco Santander shares its training, induction and development methodology with its main subsidiaries to promote best practices and drive consistency of approach across our footprint. Specifically, in 2025 we scheduled training sessions for subsidiary directors covering cybersecurity, transformation, artificial intelligence and our shareholder value creation strategy. #### Board effectiveness review in 2025 The board undergoes a yearly assessment of its performance and effectiveness, composition, quality of its work, and individual performance of its members. The review includes its committees. Every three years, it is conducted by an external consultant, whose independence is verified by the nomination committee. #### Methodology and scope of the review In 2025, the review was conducted internally. Its scope included the structure of the board, its organization and functioning, dynamics and internal culture and the functioning and effectiveness of its committees. In addition, it covered the individual performance of the Executive Chair, Chief Executive Officer, Lead Independent Director and General Secretary. The Annual report 2025296 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | review also facilitated the opportunity for performance feedback on the remaining individual directors. The Executive Chair and the nomination committee Chair led the review, with the involvement of the Lead Independent Director. It followed the methodology and structure of previous internal reviews, based on a confidential questionnaire that all board members completed in full. Moreover, the review also took into account the feedback received from senior executives on the overall value they get from the board as a whole and reflections received as part of additional interactions throughout 2025 (including non-executive director sessions and assessment questionnaires for board training and development programmes, among others). #### Findings and action plan The nomination committee and board of directors discussed the results of the 2025 review in December 2025, with a consensus view that the board and its committees continue to operate effectively. In particular, the results revealed the following: • The board remains appropriately composed, with a depth and variety of skills, as well as high degree of independence and diversity. • The Executive Chair model continues to work effectively and there remains clarity and universal understanding of the division of responsibilities between the Executive Chair and the CEO. The checks and balances in place are considered highly effective. • There is a strong and healthy internal board culture, where dynamics encourage open and transparent discussions, critical thinking, constructive challenge to senior management and sound decision making. • The board organisation and functioning continue to be rated well, acknowledging the positive impact of the simplification measures implemented throughout 2025 to optimize directors’ time. In addition, the board members believe that the agendas focus on the right priorities and that the quality of reporting and information flows supports robust and timely decision-making. • The Executive Chair, Chief Executive Officer, Lead Independent Director and General Secretary performed positively and effectively, with the expected competence. The remaining directors contributed effectively to the correct discharge of the board's duties. • Committee size and overall composition, including skills and diversity, are considered appropriate, and committee Chairs lead effectively. In addition, there is a consensus view that associated coordination mechanisms are working effectively. • The executive team considers that the board provides the right balance of challenge and support to management. As a result of the review, the nomination committee and board of directors discussed potential areas for improvement and both endorsed an associated action plan in December 2025. Each committee has been engaged on specific actions applicable to their remit to ensure effective and efficient operation, as appropriate. The key action plan highlights can be summarised as follows: • Board composition: As part of any future board refreshment, a continued focus will be placed on maintaining an appropriate international diversity, in recognition of our geographical footprint; this specific action was completed in February 2026 following the proposal of submitting Deborah Vieitas’ appointment to the 2026 AGM (subject to regulatory approval). • Organization and functioning: We will keep board and committee meeting frequency under continuous review to ensure directors’ time is used in an optimal manner. In addition, the quality of reporting, papers and associated information flows to the board and its committees will be kept under continuous review, with a key focus on overall quality and length. • Committee coordination: We will continue to monitor linkages between committees and with the board as a whole, with a key focus on the interplay between the risk supervision, regulation and compliance committee and the innovation and technology committee on the oversight of technological and cyber risks, among others. • Committees: We will continue to take a proactive approach to committee composition to ensure optimal performance, effectiveness and efficient distribution of work among board members, among other factors. The resulting actions and associated outcomes of the review have supported our continued priority focus on effective governance. Annual report 2025297 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 4.4 Executive committee activities in 2025 | | | --- | | | | COMPOSITION | | | | | | | --- | --- | --- | --- | | | | | | | Position | | Category | Appointed on | | Chair | Ana Botín | Executive | 11/12/1989A | | Members | José Antonio Álvarez | Other external | 13/01/2015 | | Héctor Grisi | Executive | 01/01/2023 | | Luis Isasi | Other external | 20/05/2020 | | Belén Romana | Independent | 01/07/2018 | | Secretary | Jaime Pérez Renovales | | | A. Committee Chair since 10 September 2014. #### Functions The executive committee is a key governance body in Banco Santander and the Group. The board delegated to it all its powers except those that cannot be delegated by law or under the Bylaws or the Rules and regulations of the board. Its meeting frequency and the nature of its decisions enable the board to focus on oversight and control. It also reports regularly to the board on its core matters and decisions, and provides all directors with the minutes and documents from its meetings. #### Committee performance The board, supported by its nomination committee, determines the committee's size and composition to ensure its effectiveness. As well as the board, the committee has an external director majority, including an independent director, ensuring a balance of opinions. Its secretary is the secretary of the board. The committee's meeting frequency of every two weeks ensures the discharge of its duties, though it can meet as many times as required by the Chair. #### Main activities in 2025 In 2025, the committee addressed a breadth of matters relating to the business of the Group and its main subsidiaries, risk management, corporate transactions and other proposals that were subsequently submitted to the board, which can be summarized as follows: • Group results: Reviewed the Group's quarterly results and investors and analysts' reaction to them. • Report by the Executive Chair: The Executive Chair regularly reported on the Group's management, strategy and institutional matters. • Report by the CEO: The CEO regularly reported on the Group's performance and related budget and the execution of financial plans for all the global businesses that report to him and the main subsidiaries. • Corporate transactions: Analysed and approved, where appropriate, corporate transactions on investments and divestments, joint ventures, operations that entailed structural changes, as well as capital transactions. • Shareholder remuneration: Within the framework of the remuneration policy in force, reviewed the proposed shareholder remuneration in relation to the 2025 results and excess capital, including the payment of cash dividends, and passed the necessary resolutions to obtain the required regulatory authorization and to execute, by delegation of the board of directors, share capital reductions in the context of the share buyback programmes. • Risk and compliance: Received regular holistic risk and compliance reports. The committee also authorized or declined material transactions in line with the risk governance model. • Global businesses and subsidiaries: Received regular updates on global businesses, subsidiaries and other business lines' performance against agreed plans, and with the fulfillment of the targets announced at the 2023 Investor Day. • Capital and liquidity: Received regular reports on capital ratios and optimization measures, pricing (originations) and portfolio profitability. By virtue of the board's delegation and within capital and funding plans, the committee agreed non-convertible debt issuances and securitizations. • Supervisors and regulatory matters: Received regular information about the regulators' activity and supervisors' agenda for the year, including their associated exercises and recommendations. • Governance: Assessed the suitability of certain key appointments within the Group, in accordance with the internal appointments and suitability assessment procedure. The committee approved specific internal regulation under its remit, including the operating model to integrate AI across the organization. Furthermore, the committee was informed of the implementation of the action plans resulting from the effectiveness assessment of the executive first level committees. In 2025, the committee held 23 meetings. In addition, resolutions in writing were adopted on one occasion without a session being held. See ['Attendance to board and committee meetings and](#ifb2b99624daa4646a71a5fe829ff7983_26395) [dedication to the performance of duties'](#ifb2b99624daa4646a71a5fe829ff7983_26395) in section 4.3 for members’ meeting attendance and the time spent on meeting preparation and attendance. #### 2026 priorities The committee set the following priorities for 2026: • Monitor the performance and the execution of the strategic plans of the Group's global businesses and subsidiaries, including progress in the agile approach in the way we work to becoming a more efficient and customer-based organization, supported by multidisciplinary teams across the Group. • Monitor the progress made on certain strategic projects recently announced, such as the acquisition and subsequent integration of both TSB and Webster into Santander UK and Santander US, respectively, and the merger of Openbank and Santander Consumer Finance. • Continue to assess additional corporate transactions relating to investments and divestments, joint ventures, corporate restructurings and capital transactions. • Oversee the execution and achievement of specific public targets and, in particular, those announced at the 2026 Investor Day. • Continue to facilitate efficient decision making, supporting the board and enabling it to focus on general oversight and strategy matters. • Continue to ensure the committee’s effectiveness and efficient coordination with the board, its committees and the executive first level committees. Annual report 2025298 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 4.5 Audit committee activities in 2025 | | | --- | | | | | | | | | --- | --- | | | | | 4GermanDeLaFuente2024.jpg | Germán de la Fuente Chair of the audit committee | | | "In 2025, the committee held rigorous and independent discussions, combining demanding oversight with open and constructive dialogue with senior management. I would like to sincerely thank all committee members for their dedication, commitment, and valuable contributions throughout the year and especially to Homaira Akbari, who will leave the board and the committee after the 2026 AGM. Likewise, I would like to thank the Group’s teams for their professionalism, transparency and ongoing collaboration with the committee. This activity report summarises the actions undertaken during the year, in which we have remained focused on the effective oversight of the preparation processes for financial and non-financial information, their integrity and quality, including the associated independent verification conducted. In particular, we have intensified our focus to improve data quality, process traceability and the robustness of the reporting perimeter, as the base for reliable information. As part of that, we have consistently maintained a professional and open relationship with the external auditor, ratifying our proposal to submit their re-election to the next AGM, following completion of the public tender conducted last year. Likewise, the committee has overseen the execution of the internal audit plan, with a particular focus on key areas such as credit risk, cybersecurity, and financial crime compliance, among others, ensuring that internal audit analysis adequately addressed both current and emerging risks, and that the appropriate internal controls were in place to manage those risks. To this end, it has remained essential to continue to ensure the independence, effectiveness, and adequate resourcing of the internal audit function, which is continuously evolving to support the execution of the transformation agenda around the five global businesses, as well as to integrate new ways of working and technologies that drive greater efficiency, enable deeper analysis and help anticipate emerging risks. As in previous years, we have shared our areas of focus and insights with the chairs of the audit committees of our main subsidiaries, allowing us to leverage our group-wide collective experience and continue strengthening coordination within the Group. In 2026, we will continue to oversee the effectiveness of the control environment across global businesses and subsidiaries, with particular attention to the deployment of global platforms and the agile approach in the way we work, in coordination with the risk supervision, regulation and compliance committee. We will also monitor the execution of the internal audit plan and the evolution of the technical capabilities of its team in response to an increasingly digital environment. We will remain focused on regulatory developments within the committee’s remit, working to ensure that it continues to discharge its role in the most effective manner”. ![FirmaGermandelaFuente.gif]() | | | --- | | | | COMPOSITION | | | | | | | --- | --- | --- | --- | | | | | | | Position | | Category | Appointed on | | Chair | Germán de la Fuente | Independent | 21/04/2022A | | Members | Homaira Akbari | Independent | 26/06/2017 | | Henrique de Castro | Independent | 21/10/2019 | | Belén Romana | Independent | 22/12/2015 | | Pamela Walkden | Independent | 29/10/2019 | | Secretary | Jaime Pérez Renovales | | | A. Committee Chair since 23 March 2024. The board appointed the committee's members based on their expertise, skills and experience in the matters within the committee's scope. For more details, see section [4.1 'Our directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) and ['Board skills and diversity matrix'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_520) in section 4.2. According to SEC Regulation S-K, committee Chair Germán de la Fuente is considered a financial expert based on his credentials, extensive experience in accounts auditing and strong expertise in accounting and internal and risk control, as well as in the banking industry. | | | --- | | | | TIME ALLOCATION | In 2025, the committee held 15 meetings, including one joint session with the nomination committee and four joint sessions with the risk supervision, regulation and compliance committee. See ['Attendance to board and committee meetings and dedication](#ifb2b99624daa4646a71a5fe829ff7983_26395) [to the performance of duties'](#ifb2b99624daa4646a71a5fe829ff7983_26395) in section 4.3 for members' attendance and the time spent on meeting preparation and attendance. The chart below shows the committee's approximate time allocation to its activity areas in 2025: ![1005]() Annual report 2025299 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Duties and activities in 2025 This section summarizes the audit committee's activities in 2025. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Duties | | Actions undertaken | | | | | Financial and non-financial information | | | | | | | Review of financial statements and other financial information | | • Reviewed the individual and consolidated annual financial statements and directors' report for 2025, as well as consolidated half-yearly financial report, and submitted them to the board for approval, including the proposed payment of the interim dividend and the supplementary dividend. Monitored compliance with legal requirements and accounting principles and ensured that the external auditor issued a report on the effectiveness of the Group’s system of internal control over financial reporting. • Reviewed quarterly financial information prior to board approval and subsequent release to the market and supervisory bodies. • Reviewed supplementary financial information to the annual report, in particular the Universal Registration Document filed with the CNMV and Form 20-F and Form 6-K filed with the SEC. • Verified, on a quarterly basis, the consistency of the financial information published on our website and the information required to be published on the CNMV’s website, ensuring that it was up to date and consistent with the information approved by the board. | | | | | Review of non-financial information | | • Oversaw and assessed the preparation and reporting of non-financial information, including sustainability information, in coordination with the responsible banking, sustainability and culture committee, and informed the board accordingly. In particular, reviewed the 2025 Sustainability Statement prepared under the Corporate Sustainability Reporting Directive (CSRD) and the 2024 Green Bond Report prior to board approval, assessing the integrity of the information disclosed and the associated external auditor's review. • Received regular updates from the Group Chief Accounting Officer (CAO) and the Head of Sustainability on progress with sustainability reporting within the Group. As part of this, it received information on European legislative initiatives aimed at simplifying reporting requirements, as well as advances in embedding impacts, risks and opportunities (IRO) in the Group's management and governance, in coordination with the responsible banking, sustainability and culture committee. • Endorsed the 2025 Pillar 3 disclosures report and submitted it to the board for approval, with a reinforced level of independent verification conducted by the external auditor. | | | | | Information on applied tax policies | | • Received information from the Head of tax on applied tax policies based on Spain's Code of Good Tax Practices, prior to their submission to the board for approval, as well as on the annual review of the tax strategy and the tax policy. • Received information on the filing of the 2024 Tax transparency report to Spain's tax authority (Agencia Estatal de Administración Tributaria ). | | | | | Relations with the external auditor | | | | | | | Information on the external audit plan | | • Received updates on the planning, progress and execution of the audit plan, including the work conducted in connection with the non-financial information. • Received information on the impact of legal and regulatory developments in connection with financial and non-financial information, as well as their relevance regarding timelines and assurance scope of the external auditor's verification. • Obtained the external auditor's confirmation of its full access to all information necessary to conduct the audit. • Analysed the audit reports for the annual financial statements before the external auditor submitted them to the board. It also received the external auditor's additional report explaining the results of the audit conducted, in accordance with the applicable regulation. | | | | | Interaction with the external auditor | | • Invited the lead audit partner, who met regularly with the committee Chair, to all committee meetings held in 2025, which facilitated effective communication between the external auditor and the board. In addition, the committee met him twice without executives present to ensure fluent and transparent communication and the independent performance of its function. | | | | | Assessment of the external auditor’s performance | | • Conducted the final review of the external auditor's performance and how it has contributed to the integrity of the financial information, based, among other parameters, on: its knowledge of the business, the quality and efficiency of its services and sufficiency of resources (including the composition and level of seniority of the team involved); the frequency and quality of its communications; its independence; transparency reports and quality controls; and the opinions of the audit committee Chairs and the controllers of the main subsidiaries or relevant subgroups within the Group. • Received the 2025 PricewaterhouseCoopers Auditores, S.L. (PwC) Transparency report from the lead audit partner, who also informed the committee about the outcomes of regular quality controls initiated by supervisors and other relevant investigations. | | | | Annual report 2025300 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Duties | | Actions undertaken | | | | | External auditor independence | | | | | | | PwC’s remuneration for audit and non-audit services | | • Monitored PwC’s remuneration, including the following fees for audit and non-audit services provided to the Group: | | | | | | | EUR million | | | | | | | | 2025 | 2024 | 2023 | | | | Audit | 118.5 | 122.3 | 117.5 | | | | Audit-related services | 15.0 | 13.6 | 8.6 | | | | Tax advisory services | 0.1 | 0.9 | 1.6 | | | | Other services | 7.1 | 7.4 | 5.9 | | | | Total | 140.7 | 144.2 | 133.6 | | | | | | | | | | | The audit and main non-audit services included for each item in the above breakdown are detailed as follows: • Audit services: audit of the individual and consolidated financial statements of Banco Santander and its subsidiaries (of which PwC or another network firm is the external auditor); audit of the interim consolidated financial statements of Banco Santander; integrated audits prepared in order to file Form 20-F with the SEC and the internal control audits (SOx) for required Grupo Santander's entities; limited reviews of financial statements; and regulatory reports required from the external auditors. • Audit-related services: issuance of comfort letters, verification services of financial and non-financial information (as required by regulators) and other reviews of documentation to be submitted to domestic or foreign authorities that, due to their nature, the external auditor typically provides. • Tax services: tax compliance and advisory services provided to Group companies mainly outside Spain, which have no direct effect on the audited financial statements and are permitted in accordance with the applicable independence regulations. • Other services: agreed-upon procedure reports, assurance reports and special reports performed under the accepted profession's standards; as well as other reports required by the regulators. The 'Audit' heading includes the fees for the year's audit, regardless of the date the audit was completed. Any subsequent adjustments, which are not significant, are shown in note [47.b)](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1210) in the 'Notes to the consolidated financial statements' for each year for comparison purposes. The fees corresponding to the rest of the services are shown by reference to when the audit committee approved them. Additionally, the firm BDO has performed audit and audit-related services totalling EUR 1.9 million. • Verified that the ratio of PwC's fees paid for all services for Banco Santander and the Group to the annual revenue of PwC in Spain and worldwide did not exceed the 15% limit for three consecutive years. In 2025 the ratio stood at 0.28%. • Verified every quarter, according to Regulation (EU) No 537/2014 of the European Parliament and of the Council, that the total fees approved in 2025 for non-audit services provided by PwC(including for ‘Audit- related services’, ‘Tax services’ and ‘Other services’, and excluding services that the external auditor is required to perform under domestic or EU laws) were significantly less than 70% of the average of total fees paid specifically to PwC in the past three consecutive years for the ‘Audit’ of Banco Santander and its subsidiaries in Spain (not including fees for reviews with more limited assurance than required for accounts auditing, which are included as non-audit services). In 2025, the ratio stood at 25.46%; and it would have been 15.18% if fees approved for PwC and other firms in its network for services provided to Grupo Santander in and outside Spain were included. See subsection C.1.32 of section [9.1 'Reconciliation with the CNMV’s corporate governance report model'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_622) for the reconciled amounts of the above mentioned fees listed, with the numerator and denominator values of each ratio found in section C.1.32 of section [9.2 'Statistical information on corporate governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) [required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625). • In 2025, the Group contracted for services by audit firms other than PwC in the amount of EUR 155.9 million (EUR 206.2 and 174.1 million in 2024 and 2023, respectively). | | | | | Non-audit services | | • Approved, on a monthly basis, all non-audit services rendered by the Group's external auditor, verifying that all of them met the independence requirements under Spanish and European regulation and SEC and Public Company Accounting Oversight Board (PCAOB) rules, as well as complying with our internal Policy on the approval of services other than audits provided by the external auditor. | | | | | Personal and financial relations | | • Received written confirmation from PwC that the designated audit team, PwC as the auditor firm, everyone else that forms part of PwC or of other firms in its network, including all applicable extended relations to them complied with the requirements on external auditor independence, analysing possible threats and taking appropriate safeguarding measures in line with their internal policies and procedures. • Received information about the results of the internal review (carried out every six months and according to our internal regulation) on possible financial ties between Grupo Santander and PwC and its related parties, which concluded that no existing ties compromised the independence of PwC as external auditor. | | | | Annual report 2025301 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Duties | | Actions undertaken | | | | | External auditor independence report | | • Verified the external auditor's independence prior to the issuance of the 2025 auditor’s report on the financial statements, considering: • the remuneration it has received for audit and non-audit services; • the nature of all non-audit services rendered by the external auditor; and • the personal circumstances and financial dealings that the external auditor or persons performing the audit may have with the Group. • Received written confirmation from PwC of its independence from Grupo Santander in accordance with applicable European and Spanish law and the SEC and the PCAOB rules. • Concluded that, in its opinion, it had no objective reason to question the external auditor's independence and issued this annual report on its independence. | | | | | External auditor mandate | | | | | | | Re-election of the auditor | | • Confirmed the recommendation made to the board in 2024 in view of the public tender conducted to select the external auditor following PwC's ten-year mandate, proposing to the board — for approval and subsequent submission to the 2026 AGM — the re-election of PwC as external auditor of Banco Santander and its consolidated group for financial year 2026. • Confirmed that from 2026, and in accordance with applicable regulations, the new lead audit partner is Alexander García, replacing Julián González after five years in the role. Alexander García has more than 20 years of experience auditing international financial groups. | | | | | Appointment of the verifier of the sustainability information | | • Recommended to the board the appointment of the external auditor as the independent verifier of 2026 sustainability information of Banco Santander and its consolidated group, subject to the implementation of the CSRD in Spain, and proposed its submission for approval to the 2026 AGM. | | | | | Internal audit | | | | | | | Monitoring of internal audit activities | | • Reviewed the annual internal audit plan for 2025 and submitted it to the board for approval, ensuring that it covered the Group's material risks, with a key focus on credit risk, third party risk management, model risk and financial crime compliance, among others. • Received information from each subsidiary Chief Audit Executive (CAE) at least once in 2025. • Received regular information on internal audit activities carried out in 2025, monitoring progress in the internal audit plan and overseeing ratings and recommendations of global businesses, units and corporate functions, and further promoting a continued focus on maintaining a robust control environment. • Continued promoting the first line’s further involvement in internal audit recommendations and ensured that senior management and the board took into account the conclusions and recommendations of internal audit reports. • Received holistic reviews of internal audit coverage of cybersecurity, technological risks, vendor management risk, financial crime, strategic risk, sustainability, model risk, credit risk, capital and solvency, structural and liquidity risks and operational risk, among other topics, to ensure proper oversight, with first and second line of defence representatives invited to provide additional perspectives, as appropriate. | | | | | Oversight of the internal audit function | | • Supervised the internal audit function and ensured its independence and effectiveness in 2025. • Assessed the preparedness and effectiveness of the internal audit function to fulfil its duties after being informed of the organisational changes within the internal audit function to ensure that the function was well structured to deliver its objectives in the context of the transformation agenda and the consolidation of all our activities under five global businesses. • Reviewed the external quality assessment performed by the Institute of Internal Auditors in Spain in certain units to continue ensuring the effectiveness of the function and its alignment with best practice and Global Internal Audit Standards. • Reviewed and approved the internal audit function strategic plan for 2025-2026. • Endorsed the 2025 internal audit function budget, ensuring that the function had the appropriate resources and skill sets needed to discharge its duties effectively. • Received information on the digital initiatives launched, including upskilling and development activities regarding AI, as well as the internal audit hubs created to continue improving the efficiency of the functions' work. • Invited the Group CAE to committee meetings and held two private sessions with her but without other executives or the external auditor present. The committee also invited additional internal audit officers to meetings throughout 2025, when required. • Reviewed and endorsed the CAE's 2025 objectives for onward submission to the board for approval, and assessed her performance against those objectives and reported the results to the remuneration committee and to the board to set her variable remuneration. • Participated in the election and appointment and verified the suitability of the subsidiary CAEs in coordination with the Group nomination committee. | | | | | Internal control systems | | | | | | | Monitoring the effectiveness of Internal control systems | | • Received information on the Group's Internal control systems (ICS), including those associated with non- financial information preparation and reporting, and monitored related action plans. • Received information on the results of the assessment and certification of the Internal Control Model for 2024 and assessed its effectiveness in compliance with the CNMV's and the SEC's (SOx) regulations. | | | | Annual report 2025302 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Duties | | Actions undertaken | | | | | Governance | | | | | | | Coordination with the risk supervision, regulation and compliance committee | | • Reviewed the risk, compliance and internal audit aspects of the global businesses and subsidiaries, with first line of defence representatives present. • Received information on the Group's whistleblowing channel ( Canal Abierto), with a special focus on matters within the committee's remit to ensure employees and other persons related to the Group to speak up, be heard and report irregular practices without fear of reprisal. Reported favourably to the board on the update of internal regulation regarding Canal Abierto, with a key focus on ensuring its alignment with the CNMV Technical Guide 1/2024 on Audit Committees. • Discussed additional topics of mutual interest, such as risk culture and the internal control environment, including measures implemented in connection with the adoption of an agile approach in the way we work, and received an update on internal audit matters of the risk and compliance functions. • Received regular updates on the main legal and tax contingencies, associated provisions and applicable public information. • Invited the Chief Risk Officer (CRO) to all 2025 committee meetings. • The Chairs of the audit committee and of the risk supervision, regulation and compliance committee remained in constant communication, ensuring full coordination and collaboration among their respective committees. | | | | | CAO appointment | | • Participated in the CAO selection process, led by the nomination committee, resulting in the proposal to appoint Manuel Preto for that position, which the board subsequently approved. | | | | | Coordination with subsidiaries | | • Held several remote meetings with the subsidiary audit committee chairs and invited them to committee meetings throughout the year. For more details, see ['Group and subsidiary committee relations'](#i237f227ae7a34b0682349a921db2c4fd_45393) in section 7.2. • Received reports from Santander España's joint audit and risk committee on the main items covered at the meetings held throughout the year. | | | | | Related-party and corporate transactions | | | | | | | Corporate transactions | | • Reviewed, in coordination with the risk supervision, regulation and compliance committee, the proposed merger of Openbank and Santander Consumer Finance. | | | | | Creation or acquisition of special-purpose vehicles and entities based in countries considered non- cooperative jurisdictions | | • Received information on the activities of the Group’s offshore entities from the Head of tax, and provided this information to the board. See note [3.c)](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1003) in the 'Notes to the consolidated financial statements'. • Reported favourably to the board, for its approval, on proposals to create or acquire interests in entities domiciled in non-cooperative jurisdictions or in special purpose entities and received the special purpose entities annual update. | | | | | Authorization and oversight of related-party transactions | | • Reviewed the details and balances of the related-party transactions reported in the annual and half-yearly financial statements. Checked that those transactions were carried out under market conditions. • Supervised and reported to the board on a bi-annual basis that the related-party transactions, including those authorized with delegated board powers, complied with the law, the Rules and regulations of the board and/or the conditions set by board resolution; and verified alignment with the internal reporting and monitoring procedure and that those transactions met the fairness and transparency requirements established in the aforementioned rules and were fair and reasonable. • Issued the Related-party transactions report. For more, details see section [4.12 'Related-party transactions](#i6ecb2a0d58d04b53bfadfa2a833efaa7_556) [and other conflicts of interest'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_556) . | | | | | Information for general meetings and corporate documents | | | | | | | Shareholder information | | • Was represented at the 2025 AGM by the committee Chair, who reported on the committee's activities in 2024. | | | | | Corporate documents for 2025 | | • Prepared this activities report on 19 February 2026, which includes a performance review of the committee's functions and activities carried out, and key priorities identified for 2026. The board of directors approved it on 24 February 2026. | | | | Annual report 2025303 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 2026 priorities The committee set these priorities for 2026: • Continue to oversee the integrity and quality of the Group’s financial and non-financial information. Likewise, maintain a robust and open relationship with the external auditor, reviewing its audit plan, independence, execution quality, key judgements, and significant areas of its audit. • Continue to supervise the effectiveness of the control environment in the Group's global business and units, with a special focus on the implementation of global platforms and the agile approach in the way we work, in coordination with the risk supervision, regulation and compliance committee. • Supervise the internal audit plan execution throughout the Group, with a special focus on fundamental risks, such as credit risk, cybersecurity, financial crime prevention, third party risk management, operational resilience and risk derived from emerging technologies such as generative AI. • Remain focused on the independence and effectiveness of the internal audit function, ensuring its preparedness to fulfil its duties, including the required resources, skills and expertise of its people, especially in the area of new technologies. • Reinforce oversight of the closure of significant observations, when applicable, from internal audit, the external auditor, supervisors and control functions, ensuring effective and sustainable remediations. • Monitor legislative initiatives within the committee’s remit, with special attention to internal controls related to sustainability reporting and the level of preparedness for its external assurance, in coordination with the responsible banking, sustainability and culture committee. • Hold a subsidiary audit committee Chairs' convention in 2026 to further enhance communication and collaboration across the Group. • Remain focused on discharging its role in the most tangible and effective manner. Annual report 2025304 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 4.6 Nomination committee activities in 2025 | | | --- | | | | | | | | | --- | --- | | | | | 11BelénRomana2024.jpg | Belén Romana Chair of the nomination committee | | | "In 2025, the committee continued to oversee that both the board of directors and the senior management team were suitable to deliver the agreed strategic objectives and to execute the Group’s transformation agenda. With this objective, we carried out a detailed review of the board composition and associated succession planning considerations, ensuring that its collective skills and experience continued to contribute effectively to the Group’s success. As committed under the action plan derived from the 2025 board effectiveness review evaluation, we have continued to work on the appropriate refreshment of the board, taking into account relevant factors such as our strategic direction, our presence in key markets and associated global scale. As a result, we will shortly welcome Deborah Vieitas, Chair of the board of Santander Brasil, who brings extensive professional experience in the financial sector and Brazilian market knowledge to the board. Senior management succession planning has also been a priority throughout 2025, ensuring that the Group has the appropriate depth talent to address future business challenges and that succession plans remain effective. We remain firmly committed to the development of internal talent and to ensuring that our leaders are fully aligned with the corporate culture. As part of the board’s visit to the US in 2025, we held a dedicated session with high-potential executives to assess the quality of our internal talent pipeline. With regard to the appointments announced during the year, and in line with its oversight responsibilities, the committee recommended new senior management appointments, including the global heads of Digital Consumer Bank and of data & artificial intelligence, as well as the new Chief Risk Officer\*, among others. In line with our commitment to best governance practices, the committee continued to oversee the effectiveness of the board and its committees, as well as the proper implementation of the action plan arising from the board evaluation. The evaluation carried out in 2025 confirmed the overall satisfaction of directors with the effectiveness of the board’s functioning, which benefits from a strong culture that fosters open and constructive debate. We firmly believe that robust governance and proactive talent management are essential elements of the Group’s success. Looking ahead, the committee will continue to work to ensure that the board and the senior management team are well prepared to address strategic challenges, drawing on our strong corporate culture to attract, develop and retain the best people to lead the Group’s progress". ![FirmaBelenRomana.gif]() | | | --- | | | | COMPOSITION | | | | | | | --- | --- | --- | --- | | | | | | | Position | | Category | Appointed on | | Chair | Belén Romana | Independent | 01/01/2024A | | Members | Carlos Barrabés | Independent | 27/07/2024 | | Sol Daurella | Independent | 23/02/2015 | | Gina Díez Barroso | Independent | 22/12/2021 | | Glenn Hutchins | Independent | 20/12/2022 | | Secretary | Jaime Pérez Renovales | | | A. Committee Chair since 23 March 2024. The board appointed the committee's members based on their expertise, skills and experience in the matters within the committee's scope. For more details, see section [4.1 'Our directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) and['Board skills and diversity matrix'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_520) in section 4.2. | | | --- | | | | TIME ALLOCATION | In 2025, the committee held nine meetings, including one joint session with the audit committee. In addition, resolutions in writing were adopted on two occasions without a session being held. See ['Attendance to board and committee meetings and](#ifb2b99624daa4646a71a5fe829ff7983_26395) [dedication to the performance of duties'](#ifb2b99624daa4646a71a5fe829ff7983_26395) in section 4.3 for members' attendance and the time spent on meeting preparation and attendance. The chart below shows the committee’s approximate time allocation to its activity areas in 2025: ![752]() Annual report 2025305 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Duties and activities in 2025 This section summarizes the nomination committee's activities in 2025. | | | | | --- | --- | --- | | | | | | Duties | | Actions taken | | Board and committee composition | | | | Selection and succession of the board and its committees | | • Ensured that board member selection procedures guaranteed directors’ individual and collective suitability and fostered diversity in its broadest sense; and analysed the required expertise, skills and time commitment for effective board membership. • Continued to oversee, together with the Executive Chair, succession planning activities for the board. • Continued monitoring and assessing the board and its committees' overall skills and competencies, therefore ensuring that their collective composition remained appropriate to oversee and lead the strategic direction of the Group and to perform their duties successfully. | | Appointment and re- election of directors | | • Considered areas of expertise and experience required to complement the board by reference to the board skills and diversity matrix as well as the annual board effectiveness review in order to target appropriate searches and recruitment. • Ensured that any proposed appointment had been drawn from a depth of candidate pool that recognized diversity in its broadest sense, therefore ensuring the best possible outcomes. • Proposed the appointment of Deborah Vieitas as independent director to be approved by shareholders at the 2026 AGM, subject to the relevant regulatory authorization. • Proposed director reelections that will be submitted to shareholder approval at the 2026 AGM, taking into account our policy on the selection, succession and suitability assessment of directors, as well as the outcome of directors' annual suitability assessments. | | Annual verification of directors' status | | • Verified each director category (i.e. executive, independent and other external) and submitted a proposal to the board for it to be confirmed or reviewed in the annual corporate governance report and at the 2026 AGM. For more details, see section [4.2 'Board composition'](#i54aff41f6ba94eecbadbaed58547f245_2705). • Assessed directors’ independence, verifying (among other factors) that there were no significant business ties between the Group and companies in which they are, or have been, significant shareholders, directors or senior managers, in particular regarding financing extended by the Group to such companies. In all cases, the committee concluded that existing ties were not significant because (i) financing (a) did not constitute economic dependency for such companies because other sources of funding were available, and (b) was consistent with the Group’s share of the relevant market; and because (ii) business ties did not reach comparable materiality thresholds used in other jurisdictions as benchmarks (e.g. New York Stock Exchange (NYSE), Nasdaq and Canada’s Bank Act), among other reasons. | | Director training and development programmes | | • Assessed the effectiveness of director training and development programmes, guaranteeing that they were designed according to their circumstances and needs, and identified areas for improvement and additional training topics for 2026. • Analysed the effectiveness of the subsidiary director training programme to keep them updated on relevant Group matters and endorsed the proposed training topics for 2026. | | International advisory board | | • Assessed the composition of the international advisory board in order to ensure it had the right skills and experience to perform its duties successfully. • Recommended the nomination of José Fernández da Ponte as member of the international advisory board and was kept apprised of the resignations submitted by Andreas Dombret and Lawrence Summers. See section [4.11 'International advisory board’](#i6ecb2a0d58d04b53bfadfa2a833efaa7_553). | | Senior management and talent | | | | Appointments | | • Recommended specific appointments, which were later agreed by the board, verifying their suitability for the role being proposed. In particular, the selection of the CAO and the CRO was conducted in coordination with the audit and the risk supervision, regulation and compliance committees, respectively. For more details, see section [5. 'Senior management team'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_559). • Assessed senior management attrition rates, talent retention and associated risks in coordination with the risk supervision, regulation and compliance committee, and made related recommendations. | | Succession planning | | • Oversaw the discipline applied to executive directors and senior management succession planning, which also included key positions both at Group and subsidiary levels, and made sure that such plans were implemented through a rigorous, transparent, merit-based and objective process that promotes diversity in its broadest sense. • Monitored the effectiveness of top management succession plans. • Reviewed the senior management succession plans for onward submission to the board for approval and, where relevant, posed challenges to ensure that such plans had strength in depth. | | People and culture | | • Discussed the activities conducted by the people, culture & organization function to continue supporting progress on a merit-based culture of equal opportunity and inclusion that supports our transformation and move towards the agile approach in the way we work. • Monitored progress towards equality and greater representation of women in executive positions. • Assessed and challenged proposals on executives' mission, career development plans, mobility and talent retention initiatives Group-wide. | Annual report 2025306 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | Duties | | Actions taken | | Governance | | | | Board effectiveness review | | • Reviewed the execution of the action plan to address the areas for improvement identified in the 2024 board effectiveness annual review, which was conducted internally, ensuring its successful and timely completion. • Oversaw the 2025 board effectiveness review, which was also conducted internally, and endorsed the resulting action plan. For more details, see ['Board effectiveness review in 2025'](#ifb2b99624daa4646a71a5fe829ff7983_75730) in section 4.3. • Analysed the outcomes of the subsidiary board and board Chairs annual effectiveness reviews. | | Lead Independent Director | | • Reviewed the activities conducted by the Lead Independent Director, ensuring the discharge of his duties, as evidenced through a summary of his activities over the year, which was also submitted to the board. See ['Lead Independent Director'](#ifb2b99624daa4646a71a5fe829ff7983_36983) in section 4.3. • Reviewed the engagement activity conducted by the Lead Independent Director with shareholders, investors and proxy advisors, and analysed their feedback on the Group's corporate governance arrangements. | | Corporate governance | | • Reviewed the key highlights of the 2025 AGM and monitored shareholder experience and results, quorum and voting results, including the feedback received on the fully virtual format it was held in. Received updated information on our investors and proxy advisors' insights and evolving market trends on general shareholder meeting format. And recommended the board call the 2026 AGM in a virtual format, in light of the success of the 2025 virtual AGM, which was marked by high levels of shareholder engagement, and given that this format enhances shareholder participation and ensures their equal treatment and is consistent with the Group's digital transformation and sustainability commitment, also considering the growing global trend towards fully virtual shareholder meetings. • Verified the independence of the external advisers hired by the committee and the remuneration committee in 2025, analysing their services and the amounts they received, among others. • Reviewed the annual corporate governance report to verify that information contained therein conforms to the applicable law. • Assisted the board in the regular review of our corporate governance system for the board to fulfill its mission to promote corporate interest and consider stakeholders' expectations. | | Internal governance | | • Monitored the split of roles and responsibilities between the Executive Chair and the CEO to ensure their ongoing effectiveness and alignment with the board approved allocation. For more details, see ['Board](#ifb2b99624daa4646a71a5fe829ff7983_75731) [structure and organization'](#ifb2b99624daa4646a71a5fe829ff7983_75731) in section 4.3. • Oversaw subsidiary board composition to ensure consistent collective suitability in line with expectations across the Group. • Verified that subsidiaries followed the provisions of the GSGM relating to board and committee structure and their functions pursuant to best practices. In addition, the committee tracked subsidiary actions and progress in implementing internal regulation required by the Group for its subsidiaries. For more details, see section [7. 'Group structure and internal governance'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_586) . • Endorsed changes to the GSGM to include data & AI as a global support function and key position in the subsidiaries that reports to the Global CDAIO and locally to the subsidiary CEO. • Remained informed of the actions taken to simplify and streamline internal regulations and executive level governance bodies' effectiveness with no loss of governance. | | Suitability assessment of directors and key positions | | | | Appointments | | • Recommended the appointment of Group and subsidiary key position holders after confirming their suitability. The suitability assessments of the subsidiary CAEs, and CROs and CCOs were conducted in coordination with the Group audit and risk supervision, regulation and compliance committees, respectively. • Endorsed Group director nominations for subsidiary boards after confirming their suitability. | | Annual assessment | | • Conducted the annual suitability assessment of directors, senior management, heads of internal control functions and the Group's key position holders, overseeing situations that might impact on the Group's credit and reputation, and confirming these individuals' continued good business and professional reputes and appropriate knowledge and experience to perform their duties. • Concluded that board members continue to discharge good governance, having analysed their notifications regarding their other professional obligations and confirmed that these do not affect their ability to devote the necessary time nor generate any conflict of interest; and having overseen their attendance at board and committee meetings and ensured that it did not fall below 75%. Furthermore, average board attendance was verified as 99%. For more details, see ['Attendance at board and committee meetings and dedication to](#ifb2b99624daa4646a71a5fe829ff7983_26395) [the performance of duties'](#ifb2b99624daa4646a71a5fe829ff7983_26395) in section 4.3. | | Continuous oversight | | • Examined the information provided by directors about their intention to carry out other professional activities or hold positions outside the Group and the related time commitment and concluded that those commitments were compliant with the applicable legislation regarding the maximum number of directorships they may hold, and did not interfere with their obligations as Banco Santander directors nor entail any conflict of interest. | Annual report 2025307 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | Duties | | Actions taken | | Information for general meetings and corporate documents | | | | Shareholder information | | • Was represented at the 2025 AGM by the committee Chair, who reported on the committee's activities in 2024. | | Corporate documents for 2025 | | • Prepared this activities report on 23 February 2026 , which includes a performance review of the committee's 2025 duties and actions taken and key priorities identified for 2026. The board of directors approved it on 24 February 2026. | #### 2026 priorities The committee set these priorities for 2026: • Continue to supervise succession arrangements for board members to ensure its effective planning. Continue to take its proactive approach to board refreshment and associated succession planning, considering board effectiveness review outcomes and other relevant factors. • Keep a proactive focus on senior executive succession planning based on the Group’s strategic needs, and the potential challenges the business may face, while maintaining our attention to the continued development of our internal succession pipeline. • Continue to promote initiatives and programmes that facilitate our internal talent's most optimal preparedness for assuming new responsibilities. Further continue to promote a merit-based culture of equal opportunity and inclusion that facilitates the success of our leaders and multidisciplinary and agile teams in our transformation agenda. • Monitor ongoing regulatory initiatives within the committee's remit, with a key focus on those which might impact our internal regulation. • Keep our corporate governance arrangements under constant review to make sure they continue to consider all stakeholders’ interests by closely monitoring shareholder engagement and, together with the Lead Independent Director, taking into account their feedback and insights. In particular, monitor shareholder experience and results of the 2026 AGM, including the feedback received on the format in which it will be held and reporting on this to the board. • Plan and oversee the board effectiveness review to be conducted by an external advisor, and to propose to the board the actions required to address any resulting changes or improvements. • Oversee execution of the actions derived from the 2025 board effectiveness review and remain focused on ensuring that the board and its committees discharge their role in the most tangible and effective manner. Annual report 2025308 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 4.7 Remuneration committee activities in 2025 | | | --- | | | | | | | | | --- | --- | | | | | GlennHutchins_E.jpg | Glenn H. Hutchins Chair of the remuneration committee | | | "As Chair of the remuneration committee, I am pleased to summarize our work during 2025. The committee remained focused on ensuring that the Group’s compensation framework supports our strategy, reinforces a strong risk culture, and aligns the interests of management with those of shareholders. Our ability to deliver on our Investor Day commitments depends fundamentally on our people. A well-designed compensation framework is essential to attracting, developing and retaining top talent worldwide — and to driving the transformation that underpins long-term shareholder value creation. Our approach rewards sustainable results and behaviors aligned with shareholder interests. During the year, the committee reviewed feedback from shareholders and proxy advisors and defined the performance indicators for 2026 variable compensation. These indicators maintain a clear focus on shareholder value creation, Group-wide collaboration, capital discipline, and the successful execution of our transformation agenda. The committee worked closely with the risk committee to ensure that compensation outcomes remain fully aligned with the Group’s risk profile. We reviewed the achievement of 2025 executive variable compensation targets and assessed risk adjustments, ensuring alignment with prudent risk management at all times. We oversaw enhancements to the performance management system to promote clear objectives, reinforce accountability, and support individual development. An external advisor confirmed that the Group’s compensation policies and practices remain fully compliant with applicable regulations. The committee also endorsed updates to internal policies to maintain alignment with evolving regulatory and supervisory expectations. The committee monitored compensation trends across our markets to ensure our practices remain competitive and support the development of high-performing teams committed to the Group’s strategic priorities The committee will continue to refine incentive structures to drive long-term shareholder value, foster collaboration across the organization, and maintain alignment with prudent risk and capital management. We will stay attentive to evolving market practices and regulatory expectations while strengthening our ability to attract, develop and retain the talent required to execute our strategy". | | | --- | | | | COMPOSITION | | | | | | | --- | --- | --- | --- | | | | | | | Position | | Category | Appointed on | | Chair | Glenn Hutchins | Independent | 20/12/2022 | | Members | Sol Daurella | Independent | 23/02/2015 | | Henrique de Castro | Independent | 29/10/2019 | | Luis Isasi | Other external | 19/05/2020 | | Antonio Weiss | Independent | 01/01/2025 | | Secretary | Jaime Pérez Renovales | | | A. Committee Chair since 1 October 2023. The board appointed the committee's members based on their expertise, skills and experience in the matters within the committee's scope. For more details, see section [4.1 'Our directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) and ['Board skills and diversity matrix'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_520) in section 4.2. | | | --- | | | | TIME ALLOCATION | In 2025, the committee held nine meetings, including one joint session with the risk supervision, regulation and compliance committee. See ['Attendance to board and committee meetings and](#ifb2b99624daa4646a71a5fe829ff7983_26395) [dedication to the performance of duties'](#ifb2b99624daa4646a71a5fe829ff7983_26395) in section 4.3 for members’ attendance and the time spent on meeting preparation and attendance. The chart below shows the committee's approximate time allocation to its activity areas in 2025: ![753]() Annual report 2025309 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Duties and activities in 2025 This section summarizes the remuneration committee's activities in 2025. | | | | | --- | --- | --- | | | | | | Duties | | Actions taken | | Remuneration schemes and policies | | | | Remuneration policy for executive directors, senior management and other key executives | | • Remained focused on simplifying executive director and senior management remuneration, shaping remuneration schemes consistent with our Simple, Personal and Fair values, with a special focus on shareholder value creation. • Proposed to the board the global annual executive variable remuneration for 2025 (payable immediately and deferred executive remuneration), based on achievement of previously set quantitative and qualitative targets. • Recommended to the board the annual performance indicators to calculate the Group's variable remuneration for 2026 in order to maintain focus on Group-wide collaboration, shareholder value creation, solid risk management, rigorous capital discipline and the Group's transformation, among others. • Proposed to the board the achievement scales for the annual and multi-year performance targets and weightings. | | Compliance with the remuneration policy | | • Checked that remuneration schemes aligned with the Group's performance, corporate culture, risk appetite and applicable regulation, and created no incentive to breach risk appetite. • Reported to the board on Group remuneration practices and assessed their effectiveness, receiving confirmation on their alignment with the Group remuneration policy. • Reported to the board on an external advisor assessment of the remuneration policy that concluded that the Group's policies, procedures and practices comply with the regulatory requirements for credit institutions. • Reviewed the ex-ante and ex-post risk adjustments of total variable remuneration and oversaw the application of malus and clawback arrangements, assigned to the global businesses and subsidiaries, based on actual risk outcomes and their management, in conjunction with the risk supervision, regulation and compliance committee. | | Director remuneration policy report | | • Received information from the Lead Independent Director on his engagement with key shareholders and proxy advisors regarding executive director remuneration. • Reviewed and proposed to the board the annual directors' remuneration report for an advisory vote at the 2025 AGM. • Assisted the board in overseeing compliance with the director remuneration policy. • Recommended the directors' remuneration policy for 2026, 2027 and 2028 that will be submitted by the board of directors at the 2026 AGM as a separate item on the agenda pursuant to Article 529 novodecies of Spain's Companies Act and is an integral part of the director remuneration policy report. See sections [6.4](#i6ecb2a0d58d04b53bfadfa2a833efaa7_574) [Directors' remuneration policy for 2026, 2027 and 2028'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_574) and [6.5 'Preparatory work and decision-making](#i6ecb2a0d58d04b53bfadfa2a833efaa7_577) [for the remuneration policy; remuneration committee involvement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_577) '. As part of that, the committee considered input from shareholder and stakeholder engagement during the year, as well as recommendations from regulators. The committee verified that the policy complies with legal requirements and/or applicable regulation concerning remuneration and is consistent with the remuneration scheme set out in the Bylaws and with the Group's culture and Simple, Personal and Fair values. | | People and culture | | • Reviewed 'equal pay for equal work' and gender pay gap and equal pay data against the previous year. • Reported favourably to the board on the update of internal regulation within its remit, with a key focus on ensuring alignment with supervisory expectations. • Reviewed the 2025 performance management system, with conversations between managers and teams to bring attention to what we do and how we do it, all within a solid risk culture, while driving everyone's development. In addition, reviewed the proposed changes for the 2026 performance management system, to address the adoption of the agile approach in the way we work. • Was kept apprised of remuneration practices, trends and challenges in several local markets. | | Executive directors, senior management and Corporate Identified Staff remuneration | | | | Performance reviews | | • Reviewed the calibration of executives’ performance reviews for senior management and, in particular, for the Executive Chair, the CEO, the CFO and other senior executives, after receiving the views of the non- executive directors at meetings that the lead independent director convened for this purpose, as well as those of the audit committee in the case of the CAE, and of the risk supervision, regulation and compliance committee in the case of the CRO and the Chief Compliance Officer (CCO). | | Fixed and variable remuneration for executive directors and senior management | | • Checked that executive directors' fixed remuneration remained appropriate to their duties based on market rates. • Proposed to the board variable remuneration for the preceding year payable either immediately or in deferred amounts, based on annual performance targets and their weightings as set by the board. • Proposed to the board the remuneration for newly appointed members of the senior management team. • Made sure remuneration for senior management remained fair and competitive, recommending adjustments where appropriate to the board, based on a benchmark analysis and specific pay principles. | Annual report 2025310 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | Duties | | Actions taken | | Share plans | | • Proposed to the board the remuneration plans that involve the delivery of shares for executive directors, senior management and other key executives. Specifically, those related to the executive directors were recommended for onward submission to the 2025 AGM. • Analysed and submitted to the board tailored incentive schemes for different units to drive talent retention and alignment with the Group’s strategic priorities. | | Corporate Identified Staff | | • Reviewed the number of executives who are part of the Corporate Identified Staff (Corporate Material Risk Takers) in 2025 pursuant to applicable law, trends versus previous years and fixed and variable remuneration ratios for control functions to ensure they remained consistent with regulation and targets. • Set key remuneration components for Corporate Identified Staff in coordination with the risk supervision, regulation and compliance committee. • Submitted a proposal to the board, for subsequent submission to the 2025 AGM, regarding the approval of maximum variable remuneration of up to 200% of the fixed component for certain Corporate Identified Staff, including executive directors and senior management. • Checked that remuneration schemes supported the attraction and retention of key talent to help drive the Group's strategy, the application of the incentives implemented in the Group, and the level of achievement of long-term deferred remuneration metrics. | | Remuneration of directors | | | | Individual remuneration of directors in their capacity as such | | • Reviewed directors’ remuneration in their capacity as such, based on the positions they held on the collective decision-making body, their membership and attendance at committee meetings, benchmark information and other objective circumstances and submitted the relevant proposals to the board. For more details, see section [6.2 'Remuneration of directors for supervisory and collective decision-making duties:](#i6ecb2a0d58d04b53bfadfa2a833efaa7_568) [policy applied in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_568). | | Governance | | | | Coordination with risk | | • Held a joint session with the risk supervision, regulation and compliance committee to review the action plans aimed at mitigating conduct risk in remuneration for the external sales force. • Verified that remuneration schemes factor in capital and liquidity, and do not offer incentives to assume risks that exceed Banco Santander's tolerance, thus promoting and being compatible with appropriate and effective risk management. | | Information for general meetings and corporate documents | | | | Shareholders information | | • Was represented at the 2025 AGM by the committee Chair, who reported on the committee's activities in 2024. | | Corporate documents for 2025 | | • Prepared this report on 23 February 2026, which includes a performance review of the committee's 2025 duties and actions taken and key priorities identified for 2026. The board of directors approved it on 24 February 2026. | #### 2026 priorities The committee set these priorities for 2026: • Keep incentive measures under continuous review to ensure that they continue to prioritize the Group's success, incentivize collaboration across the organization and shareholder value creation, and remain aligned with our solid risk and capital management disciplines. • Continue to monitor the risk adjustments in variable remuneration, ensuring that the latter aligns with the risk profile of the activities that the Group performs, the sustainability of the results achieved, and its long-term interests. • Continue to monitor trends and best practices in executive remuneration to enhance our employee value proposition further, promoting effective attraction and retention of key talent to deliver the Group's strategy, including the public targets announced at the 2026 Investor Day, while maintaining focus on investors, proxy advisors, supervisors and regulators’ expectations. • Continue promoting talent development, recognizing high performance through our performance management system, and supporting progress on an inclusive culture that ensures the avoidance of pay gaps. • Remain focused on discharging its role in the most tangible and effective manner. Annual report 2025311 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 4.8 Risk supervision, regulation and compliance committee activities in 2025 | | | --- | | | | | | | | | --- | --- | | | | | PamelaWalkden_E.jpg | Pamela Walkden Chair of the risk supervision, regulation and compliance committee | | | "In 2025, the committee continued to play a key role in supporting the board’s oversight of the Group’s risk profile against a backdrop of heightened geopolitical uncertainty, evolving supervisory expectations and the ongoing transformation of the Group. The diverse skills and experience of its members enabled the committee to provide effective challenge and support to management, while close coordination with the subsidiary risk committees allowed us to leverage their collective expertise. Throughout the year, the committee focused on ensuring that risks were appropriately identified, assessed and managed within the board-approved risk appetite, maintaining a strong and effective control environment. We remained acutely aware of external factors, including market volatility and developments in the cyberthreat and fraud landscape, with their potential to affect the Group’s businesses and operating model. We also monitored both existing and emerging risks and challenged management on their potential impact and the adequacy of mitigation actions. As in previous years, we reviewed risks by type, by global business and subsidiary, to ensure we are looking at all aspects of our global-local model. Credit risk and non-performing assets remained high on our agenda but there was also increased focus on aspects of operational risk and resilience. Compliance and conduct risk oversight, including financial crime, were also key areas of focus in 2025. The committee reviewed the effectiveness of both the risk and compliance functions, with particular attention to its independence and the adequacy of its resources. We also supported the board in overseeing the Group’s capital and liquidity position, with a focus on ensuring resilience under stressed conditions. We reviewed the capital and liquidity adequacy processes, and stress testing remained a core element of our work. In addition, we received regular updates on supervisory interactions across the Group’s footprint, and monitored key outcomes from supervisory reviews, as part of our commitment to an open and constructive dialogue with supervisors. The committee participated in the succession process for a new Group CRO, which resulted in the appointment of Pedro Castro, replacing Mahesh Aditya. The committee is fully confident in Pedro’s ability to succeed in the role and will support his onboarding process. In turn, I would like to thank Mahesh for his significant contribution to the Group’s risk culture and wish him every success in his new role as CEO of Santander UK. The committee also worked in close coordination with other committees, particularly the audit, the responsible banking, sustainability and culture, and the innovation and technology committees, to facilitate coherent and comprehensive oversight of areas of mutual interest. We also worked with the remuneration committee including the year-end remuneration process. We intend to further reinforce this committee coordination in 2026, with a particular focus on technological, ESG and third-party risks, cybersecurity, and operational resilience, among others. Looking ahead, the committee will remain focused on anticipating emerging risks, supporting the Group’s strategic transformation and ensuring that the risk and compliance functions continue to operate to the highest standards of effectiveness and independence". ![FirmaPamelaWalkden.gif]() | | | --- | | | | COMPOSITION | | | | | | | --- | --- | --- | --- | | | | | | | Position | | Category | Appointed on | | Chair | Pamela Walkden | Independent | 01/05/2021A | | Members | José Antonio Álvarez | Other external | 01/01/2025 | | Germán de la Fuente | Independent | 01/01/2023 | | Luis Isasi | Other external | 19/05/2020 | | Belén Romana | Independent | 28/10/2016 | | Secretary | Jaime Pérez Renovales | | | A. Committee Chair since 23 March 2024. The board appointed the committee's members based on their expertise, skills and experience in the matters within the committee's scope. For more details, see section [4.1 'Our directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) and ['Board skills and diversity matrix'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_520) in section 4.2. | | | --- | | | | TIME ALLOCATION | In 2025, the committee held 14 meetings, including four joint sessions with the audit committee and one joint session with the remuneration committee. See ['Attendance at board and committee](#ifb2b99624daa4646a71a5fe829ff7983_26395) [meetings and dedication to the performance of duties'](#ifb2b99624daa4646a71a5fe829ff7983_26395) in section 4.3 for members’ attendance and the estimated average time spent on meeting preparation and attendance. The chart below shows the committee’s approximate time allocation to its activity areas in 2025: ![872]() Annual report 2025312 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Duties and activities in 2025 This section summarizes the risk supervision, regulation and compliance committee's activities in 2025. | | | | | --- | --- | --- | | | | | | Duties | | Actions taken | | Risk | | | | Strategy and risk appetite | | • Reviewed risk appetite metrics, compliance with the approved limits and any breaches on a quarterly basis. • Reviewed the annual risk appetite statement proposal for 2026, including new metrics and limits, and submitted it to the board for approval. • Reviewed the three-year strategic plan, the annual budget and the recovery plan before the board approved them. Reviewed and challenged the identified risks and mitigating factors associated with those key processes, their consistency, and alignment with the Group's risk appetite. | | Risk management and control | | • Reviewed the risk profile and risk management of the Group's global businesses and main subsidiaries in coordination with the audit committee, with a special focus on credit risk, operational risk, financial crime compliance and the risks associated with our transformation. • Reviewed the risks of strategic projects and their mitigation measures, before their submission to the board. • Checked that the Group's risk management and control, most notably the risk profile assessment and the risk control self-assessment, remained robust. • Analysed the potential impact and opportunities associated with emerging risks and how they would affect our business model, including the numerous businesses and subsidiaries. • Received and analysed specific information on credit risk, with a special focus on non-performing assets; market, counterparty, liquidity and structural, and operational risks. • Reviewed the EBA Guidelines (2025/01) on ESG risk management in coordination with the responsible banking, sustainability and culture committee. • Received regular updates on legal risk, in coordination with the audit committee. • Assessed senior management attrition rates, talent retention and associated risks and dynamics, in coordination with the nomination committee, and made related recommendations. • Received and analysed updated information on third party risk management and compliance with the requirements of Digital Operational Resilience Act (DORA), technological and data risk, cybersecurity and operational resilience, in cooperation with the innovation and technology committee. • Supported the board in the supervision of crisis management and resolution planning and business continuity and contingency plans. | | Remuneration policies and practices - coordination with the remuneration committee | | • Reviewed the subsidiary action plans on internal sales force pay and related conduct risk. • Verified that remuneration schemes factor in risk, capital, liquidity and the likelihood and opportunity of remuneration components, and do not offer incentives to assume risks that exceed Banco Santander's tolerance, thus promoting and being compatible with appropriate and effective risk management. • Proposed to the board the global annual executive variable remuneration for 2025 (payable immediately and deferred executive remuneration), based on the achievement of previously set quantitative and qualitative targets. In addition, reviewed the ex-ante and ex-post risk adjustments of total variable remuneration assigned to the global businesses and subsidiaries, taking into account actual risk outcomes and their management, and oversaw the application of malus and clawback arrangements, in conjunction with the remuneration committee. • Reviewed the results of the exercise carried out annually to identify employees whose professional activities had a material impact on the Group´s risk profile (Corporate Identified Staff). | | Risk function | | • Reviewed the risk function’s activities, strategy, strengths and potential areas for improvement. • Ensured the ongoing independence and effectiveness of the risk function, including the assessment of the sufficiency and appropriateness of its resourcing. • Endorsed the CRO's 2025 objectives for onward submission to the board for approval. Reviewed the CRO's annual performance against those objectives and reported the results to the remuneration committee and board to set his variable remuneration. • Participated in the selection process of the CRO, led by the nomination committee, which resulted in the proposal to appoint Pedro Castro for that position, subsequently approved by the board. • Participated in the selection and appointment of the subsidiary CROs verifying their suitability, in coordination with the Group nomination committee. | Annual report 2025313 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | Duties | | Actions taken | | Compliance | | | | Oversight of compliance and conduct risks | | • Reviewed monthly reports on regulatory issues, product governance and costumer protection, reputational risk, internal and external events, notifications and inspections by supervisors, among others. • Received updates on compliance and conduct risks from the Group's global businesses and main subsidiaries. • Received information on the Group's whistleblowing channel (Canal Abierto) at a joint meeting with the audit committee, with a special focus on matters within the committee's remit, to ensure that empowers employees and other persons related to the Group to speak up, be heard and report irregular practices without fear of reprisal. Reported favourably to the board on the update of internal regulation regarding Canal Abierto, with a key focus on ensuring its alignment with the CNMV Technical Guide 1/2024 on Audit Committees. • Reviewed reports on customer and other stakeholders' complaints to ensure that their root causes were being assessed and action plans set to reduce and mitigate any identified deficiencies. • Reviewed the main risks identified, as well as the concerns, priorities and actions taken regarding conduct risk with retail and vulnerable customers. • Reviewed our compliance with data protection regulation across the Group and received the Data Protection Officer's annual report. | | Financial crime compliance | | • Oversaw the Group's observance of financial crime compliance regulations. • Received quarterly progress updates on our financial crime compliance strategy implementation throughout the Group, including information on sanction screening activity. • Reviewed recommendations and observations stemming from the annual independent expert report on Banco Santander. | | Compliance function | | • Supervised the compliance function's activities and strategy, strengths and potential areas for improvement. • Ensured the ongoing independence and effectiveness of the compliance function, including the assessment of the sufficiency and appropriateness of its resourcing. • Held two private sessions with the CCO to discuss strategic compliance topics as well as to discuss independently and directly any potential material issue relating to its function. • Endorsed the CCO's 2025 objectives for onward submission to the board for approval. Reviewed the CCO's performance against those objectives and reported the results to the remuneration committee and board to set his variable remuneration. • Participated in the selection and appointment of the subsidiary CCOs, verifying their suitability, in coordination with the Group nomination committee. | | Capital and liquidity | | | | Capital and liquidity strategies | | • Reviewed and reported favourably to the board on the annual Internal Capital Adequacy Assessment Process (ICAAP) run by the finance function and challenge made by the risk function in accordance with industry best practices and supervisory guidelines. • Reviewed the capital plan according to the scenarios envisaged over a three-year period. • Reviewed and reported favourably to the board on the Internal Liquidity Adequacy Assessment Process (ILAAP), which was challenged by the risk function and developed in line with the Group's business model and liquidity needs. • Reviewed liquidity risk and liquidity levels of the Group and its subsidiaries. • Continuously monitored capital levels, capital management and associated tools, the 2025 securitizations plan and the analysis of the portfolio profitability versus the risk undertaken. • Supported the board in conducting stress tests of Banco Santander through the assessment of scenarios and assumptions, analysing the results and the observations made by the risk function, and ensured that the stress test programme was aligned with the EBA Guidelines 2018/04 on institutions' stress testing. • Was informed of 2025 EBA stress test results prior to their submission to the board and subsequent disclosure. | | Governance and additional oversight activities | | | | Regulatory and supervisory relations | | • Received information on regulatory and supervisory relations, with a focus on those related to the Single Supervisory Mechanism and the Single Resolution Mechanism, as well as the supervisors of all the Group’s subsidiaries, the Supervisory Review and Evaluation Process, and the corresponding supervisory activities. | | Coordination with the audit committee | | • Reviewed risk, compliance and internal audit aspects of the global businesses and subsidiaries, with first line of defence representatives present. • Collectively discussed with the audit committee additional topics of mutual interest, such as risk culture, third party risk management, and internal control environment, and received an update on internal audit matters of the risk and compliance functions. • Reviewed the proposed merger of Openbank and Santander Consumer Finance. • The committee Chair and the Chair of the audit committee maintained constant communication to ensure full coordination and collaboration between their respective committees. | Annual report 2025314 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | Duties | | Actions taken | | Other activities | | • Reported favourably to the board on the update of internal regulation within its remit, in coordination with other committees, as required. • Held a number of subsidiary risk supervision, regulation and compliance committee Chair meetings remotely and an in-person meeting with them to foster further collaboration across the Group. For more details, see ['Group and subsidiary committee relations'](#i237f227ae7a34b0682349a921db2c4fd_45393) in section 7.2. | | Information for general meetings and corporate documents | | | | Shareholder information | | • Was represented at the 2025 AGM by the committee Chair, who reported on the committee's activities in 2024. | | Corporate documents for 2025 | | • Prepared this activities report on 18 February 2026, which includes a review of the committee's 2025 functions and actions taken, as well as the key priorities identified for 2026. The board of directors approved it on 24 February 2026. | #### 2026 Priorities The committee set these priorities for 2026: • Continue to monitor the macroeconomic and geopolitical landscape to ensure our preparedness for potential disruptions. • Oversee all the risks to ensure that they remain within our approved risk appetite. Continue to identify emerging and non- traditional risks to anticipate potential impacts on our business model, as well as the main risks associated with the transformation, the integration of new businesses and the five global businesses, with a particular focus on those associated to change management and the new ways of working. • Monitor the integration of both TSB and Webster into Santander UK and Santander US, respectively. • Reinforce coordination with the innovation and technology committee on the oversight of technological risks, including those related to new technologies such as generative AI, as well as the opportunities that various digital assets may represent for the Group. Likewise, continue to monitor cybersecurity risks, as well as those related to third-party risk management and operational resilience. • Continue to oversee the ESG risk integration into management, in line with supervisory expectations and in coordination with the responsible banking, sustainability and culture committee. • Continue to ensure the independence and effectiveness of the risk and compliance functions in discharging their critical role in the Group, including an assessment to ensure they have appropriate and sufficient resources and skillsets. Monitor the onboarding process for the new CRO to ensure its robustness, enabling him to be truly effective in his role. • Remain focused on discharging the role of the committee and interacting with the subsidiary risk supervision, regulation and compliance committees in the most tangible and effective manner. Annual report 2025315 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 4.9 Responsible banking, sustainability and culture committee activities in 2025 | | | --- | | | | | | | | | --- | --- | | | | | SolDaurella_E.jpg | Sol Daurella Chair of the responsible banking, sustainability and culture committee | | | "In 2025, the committee continued to support the board of directors in our sustainability strategy, taking into consideration developments in the regulatory, supervisory and market environment. Throughout the year, our work focused on monitoring the climate strategy, regularly reviewing its suitability to support our clients in their transition to a sustainable economy, contributing to economic growth. Against this backdrop, we have analyzed the evolution of the Group’s sustainable finance strategy and its execution by the global businesses, including priorities related to socially responsible investment. Santander remains firmly committed to education, employability, entrepreneurship, and financial inclusion to contribute the prosperity of people and businesses. As a result, inclusion and financial health remained a priority on the committee’s agenda in 2025, overseeing progress in the implementation of the global community support model. The committee placed a key focus on the complex environment in which the Group operates, characterized by the diverse range of public policies across our footprint. These analyses enabled us to continue to properly identify and assess the impacts, risks and opportunities arising from the double materiality exercise and to ensure a coherent management approach that is aligned with the Group’s strategy. During the year, we have maintained close coordination with the audit committee, particularly in relation to the oversight of the preparation and reporting of non-financial information, as well as with the risk supervision, regulation and compliance committee regarding the integration of ESG factors into the Group’s risk management. We will maintain this close collaboration in 2026. I would like to sincerely thank all committee members for their commitment, dedication and valuable contributions throughout the year. The diversity of knowledge, experience and perspectives has significantly enriched the discussions and has been key to discharging our role effectively, with a constructive approach aligned with the Group’s values at all times. Specifically, I would like to thank Homaira Akbari, who will leave the board and committee in 2026, for her valuable contribution to the committee since it was incorporated in 2018. In turn, I am pleased to welcome Germán de la Fuente as a new member shortly, as he brings very valuable experience to the committee while reinforcing the coordination with the audit committee in the oversight of the non-financial information. Looking ahead to 2026, the committee will continue to advise the board on the development and monitoring of our sustainability strategy, with a particular focus on progress in the sustainable finance proposition and supporting clients in their transition; on social matters; and on the integration of ESG factors into risk management, thereby contributing to the creation of sustainable long-term value”. ![FirmaSolDaurella.gif]() | | | --- | | | | COMPOSITION | | | | | | | --- | --- | --- | --- | | | | | | | Position | | Category | Appointed on | | Chair | Sol Daurella | Independent | 01/07/2018A | | Members | Homaira Akbari | Independent | 01/07/2018 | | Carlos Barrabés | Independent | 27/06/2024 | | Gina Díez Barroso | Independent | 31/01/2023 | | Pamela Walkden | Independent | 23/03/2024 | | Secretary | Jaime Pérez Renovales | | | A. Committee Chair since 23 July 2024. The board appointed the committee's members based on their expertise, skills and experience in the matters within the committee's scope. For more details, see section [4.1 'Our directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) and ['Board skills and diversity matrix'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_520) in section 4.2. | | | --- | | | | TIME ALLOCATION | In 2025, the committee held four meetings. In addition, resolutions in writing were adopted on one occasion without a session being held. See ['Attendance at board and committee meetings and](#ifb2b99624daa4646a71a5fe829ff7983_26395) [dedication to the performance of duties'](#ifb2b99624daa4646a71a5fe829ff7983_26395) in section 4.3 for members’ attendance and the time spent on meeting preparation and attendance. The chart below shows the committee’s approximate time allocation in 2025 to its activity areas: ![698]() Annual report 2025316 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Duties and activities in 2025 This section summarizes the responsible banking, sustainability and culture committee’s activities in 2025. | | | | | --- | --- | --- | | | | | | Duties | | Actions taken | | Environmental (E) | | | | Transition plan | | • Reviewed the Group's climate strategy and constructively challenged it to ensure our objective of supporting our clients in achieving their transition goals, assessing their climate risks in order to manage the impact on both their business and our operations, and progress in the alignment of our portfolios, in accordance with applicable local regulation. • Reviewed the plans of the global businesses to ensure their alignment with market, regulatory and supervisory context, as well as with the commercial strategy. | | ESG in risk management | | • Reviewed the ongoing work to implement the required prudential transition plan in accordance with the new EBA Guidelines (2025/01) on ESG risk management, in coordination with the risk supervision, regulation and compliance committee. • Monitored the progress made in embedding climate-related and environmental risks in line with applicable regulation and supervisory expectations, and monitored the implementation of controls and processes to mitigate ESG risks. • Reviewed the specific internal controls and risk management measures applied to Santander Brasil’s relationships with certain companies operating in the Amazon. | | Sustainable finance | | • Reviewed the sustainable finance strategy across global businesses and its execution, including priorities related to socially responsible investment. • Oversaw the sustainability strategy, including support to our customers in their transition and financial inclusion and health solutions. | | Social (S) | | | | Support to communities | | • Oversaw progress on the implementation of our community support model, to reinforce the Group's contribution to key areas such as education, including financial education, employability, entrepreneurship and support to vulnerable groups, as well as the resulting impact from associated initiatives, assessing their scope and relevance. • Received information on about corporate communication initiatives on social matters. | | Governance (G) | | | | Governance | | • Verified that the proposed sustainability agenda and targets remained aligned with the Group's strategy. • Assisted the board in ensuring that sustainability targets and metrics were embedded in the Group's remuneration schemes and reviewed, in coordination with the remuneration committee, the proposed sustainability element of the long-term incentives for 2026-2028. • Reviewed engagement with stakeholders such as investors, proxy advisors, ESG rating agencies and NGO. • Reviewed the priority areas for action based on the outcomes of the double materiality exercise and the associated IRO, including progress on their integration into management and governance to facilitate their monitoring, in coordination with the audit committee. • Reviewed progress made towards the objectives announced at the 2023 Investor Day under its remit and discussed sustainability targets for the next three years in the areas of green financing, investment in education, employment and entrepreneurship initiatives, and financial inclusion. | | ESG reporting | | • Supported the audit committee on the supervision and assessment of the process to prepare and present non-financial information according to applicable regulation and international standards. • Reviewed the 2025 Group statement on non-financial information. See the ['Sustainability statement'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) chapter. • Reviewed the Green Bond Report in coordination with the audit committee prior to its submission to the board for approval. | | Regulatory landscape | | • Reviewed the main European and international financial regulatory and supervisory initiatives and priorities related to sustainability and how they impacted the Group, including legislative proposals promoted by the European Commission aimed at streamlining sustainability-related disclosure, due diligence, and taxonomy. • Reported favourably to the board on the update of internal regulation within its remit, in coordination with risk supervision, regulation and compliance committee, as required. | | Information for general meetings and corporate documents | | | | Shareholder information | | • Was represented at the 2025 AGM by the committee Chair, who reported on the committee's activities in 2024. | | Corporate documents for 2025 | | • Prepared this activities report on 26 January 2026 , which includes a performance review of the committee's 2025 duties and actions taken and key priorities identified for 2026. The board of directors approved it on 24 February 2026. | Annual report 2025317 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 2026 Priorities The committee set these priorities for 2026: • Continue to advise the board on the sustainability, taking into account developments in the regulatory, supervisory, and market environment. • Oversee progress on our sustainable finance proposition and how the global businesses support the economic growth of the economies we serve, as well as our customers in achieving their transition objectives toward a sustainable economy. Likewise, review the management of risks associated with such transition and the evolution of sectors affected by climate. • Ensure that the Group’s policies promote responsible and ethical financial solutions that contribute positively to sustainable growth and global security, with particular focus on Europe and the defence sector, while still aiming to comply with local regulatory requirements and supervisory expectations in the jurisdictions where we operate. • Continue to prioritize our financial inclusion, financial health and community support proposition, contributing to education, employability, and entrepreneurship, as well as to community development through support programmes. • Continue to monitor the implementation of sustainability-related regulatory requirements and supervisory expectations, including the integration of ESG factors into risk management, from both regulatory and managerial perspective, as well as developments in legislative initiatives related to sustainability matters, as well as public policies and actions of authorities and institutions in the markets where we operate, as well as their associated risks, and the potential impact on our strategy. • Continue to analyse the communication and impact of sustainable related actions, as well as monitor sustainability disclosures in coordination with the audit committee. • Remain focused on discharging its role in the most tangible and effective manner. Annual report 2025318 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 4.10 Innovation and technology committee activities in 2025 | | | --- | | | | | | | | | --- | --- | | | | | GlennHutchins_E.jpg | Glenn H. Hutchins Chair of the innovation and technology committee | | | "Our objective is to continue the transformation of Santander into a truly technology-first enterprise, anchored on sustainable, long-term value creation for shareholders. We are focused on delivering this in a way that improves customer experience, drives structural efficiency, retains strength of security and resilience, meets regulatory expectations, and enables innovation at scale. In 2025, the committee maintained a disciplined focus on execution. We challenged progress, tested assumptions, and ensured that Santander’s global technology and transformation agenda remained tightly aligned with the Group’s business strategy. Discussions consistently emphasized simplification, scalability, and long-term value creation, and I would like to thank all committee members for their contributions which helped ensure the committee’s overall effectiveness. Throughout the year, we closely reviewed the evolution of Santander’s global business and operating platforms, digital initiatives, and automation programs. A central priority was the continued rollout of a common operating and business model across retail and commercial banking. This is a foundational enabler of productivity gains, reduced complexity, and improved time-to-market, and it allows our teams to focus more of their capacity on delivering high-value, personalized service to customers across all channels. Data and AI were at the core of our agenda. AI is transforming the global economy and the banking sector, and at Santander we are moving decisively to take this transformation further. Our plan is to fundamentally change the way the organization thinks and operates, becoming 'AI-native' to deliver smarter solutions, happier customers, and a future-ready bank. To support this ambition, we established the data & AI function, designed to scale our capabilities, strengthen collaboration across the Group, and accelerate impact. The committee reviewed key AI use cases across Santander and oversaw the governance of AI adoption under strict ethical, legal, and cybersecurity frameworks. Cyber and technology resilience also remained top priorities. We reviewed the evolving threat landscape, the Group’s defensive capabilities, and progress against our operational resilience agenda, including third-party risk management and regulatory requirements such as DORA. We worked in close coordination with the risk committee to ensure consistent and comprehensive oversight of technology-related risks, and we intend to continue this strength of coordination in 2026. Looking ahead, the committee will continue to support the board and management team in accelerating Santander’s transformation, building on real impact, operational rigor, and human empowerment. This includes maintaining a disciplined approach to emerging technologies, balancing in-house capability building with selective, strategically aligned partnerships that can sustainably enhance customer experience, efficiency and security”. | | | --- | | | | COMPOSITION | | | | | | | --- | --- | --- | --- | | | | | | | Position | | Category | Appointed on | | Chair | Glenn Hutchins | Independent | 20/12/2022A | | Members | Homaira Akbari | Independent | 27/09/2016 | | José Antonio Álvarez | Other external | 23/02/2015 | | Carlos Barrabés | Independent | 27/06/2024 | | Ana Botín | Executive | 23/04/2007 | | Henrique de Castro | Independent | 23/07/2019 | | Héctor Grisi | Executive | 01/01/2023 | | Belén Romana | Independent | 19/12/2017 | | Secretary | Jaime Pérez Renovales | | | A. Committee Chair since 23 March 2024. The board appointed the committee's members based on their expertise, skills and experience in the matters within the committee's scope. For more details, see section [4.1 'Our directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) and ['Board skills and diversity matrix'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_520) in section 4.2. | | | --- | | | | TIME ALLOCATION | In 2025, the committee held four meetings. See ['Attendance at](#ifb2b99624daa4646a71a5fe829ff7983_26395) [board and committee meetings and dedication to the performance](#ifb2b99624daa4646a71a5fe829ff7983_26395) [of duties'](#ifb2b99624daa4646a71a5fe829ff7983_26395) in section 4.3 for members’ attendance and the time spent on meeting preparation and attendance. The chart below shows the committee’s approximate time allocation to its main areas in 2025: ![711]() Annual report 2025319 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Duties and activities in 2025 This section summarizes the innovation and technology committee’s activities in 2025. | | | | | --- | --- | --- | | | | | | Duties | | Actions taken | | Digital & innovation | | | | Digital | | • Monitored metrics in connection with the Group's digitalization and associated transformation, with a special focus on customer experience, simplification and efficiency. • Reviewed core digital strategies to transform and accelerate growth across global businesses. • Reviewed strategic technological tools developed internally to further increase value creation across the Group, improving efficiency and driving appropriate synergies. • Reviewed the execution progress of One Transformation and its overall alignment with our strategy. • Monitored the execution of the Group’s digital strategy with a key focus on ensuring alignment with supervisors’ expectations and regulatory demands. | | Cloud | | • Reviewed the cloud strategy, which focuses on improving innovation, time–to-market and efficiency with a business-based approach, ensuring alignment with applicable regulatory requirements at all times. | | Innovation framework | | • Reviewed the implementation of the Group's innovation agenda, that leverages on our digital and data management capabilities. • Identified the challenges and capabilities in terms of innovation to increase end-to-end business agile transformation. • Identified new opportunities and developments in emerging technologies to accelerate innovation across the Group and ensured that we were well placed to succeed with new business models, technologies, systems and platforms. • Reviewed the Group’s participation in an international consortium of financial institutions aimed at analysing a potential joint issuance of a stablecoin, specifically the associated risks, the applicable regulatory framework and comparable initiatives in the market. | | Technology & operations | | | | Strategy | | • Reviewed the Group's global technology strategy plan, reported to the board on T&O planning and activities, and ensured that the T&O strategy focused on the Group's key priorities, supervising its execution through defined top-level strategic KPIs, including those specific to the execution of One Transformation and the common architecture. • Endorsed the Group's core strategic technology priorities to integrate key digital capabilities, leveraging five pillars: agile, cloud, core system evolution, AI and deep technology related skills and data. • Monitored the deployment of Gravity, Santander’s in-house banking platform, and software developed to help the bank become a fully digital company. • Reviewed specific projects being deployed throughout the Group and their associated T&O investment through a common tool, to further ensure efficiencies, synergies and robust decision-making. • Reviewed the strategy to further simplify Group-wide processes with the aim of reducing manual operational activity, analysing alternatives for further optimization, automation and process improvement. • Analysed the priorities of the T&O function and their alignment with the Group’s aim to be the best open financial services platform with innovative customer centric capabilities. | | Oversight of technological risks | | • Assisted the board in supervising technological risks, including those related to technological innovation, data risks, operational resilience and the associated regulatory developments, in coordination with the risk supervision, regulation and compliance and audit committees. | | Data and AI | | | | Strategy | | • Assisted the board in reviewing progress on the 'data & AI-first' strategy and the main initiatives identified across the five global businesses, in order to enhance decision-making and customer experience, and increase internal process efficiency. • Reviewed strategic technology partnerships, which focus on enabling a safe and scalable adoption of AI through a robust technological infrastructure and the development of business-aligned applications. • Received information on the use of AI tools throughout the Group, productivity increases for some tasks, letting teams focus on strategic and human-centric work, and the AI training strategy, tailored to roles and markets. | | Cybersecurity | | | | Strategy | | • Reviewed the Group's cybersecurity strategy, with a key focus on resilience, alignment with DORA, new technologies (including quantum computing), and three main action lines, namely: protecting the Group, bolstering its defences, and generating trust among stakeholders, customers, and broader society; and recommended it for onward submission to the board for approval. • Monitored the status and progress made on the fraud prevention plan, including its associated impacts and the actions underway to further harmonize fraud prevention capabilities across the Group. | Annual report 2025320 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | Duties | | Actions taken | | Risk management oversight | | • Assisted the board in the supervision of cybersecurity risks and supervised the global cybersecurity threat landscape and Group’s ability to defend against increasing threats, and reviewed security controls and automated security processes. • Analysed cyber incidents (including third party risk management implications) and reviewed associated lessons learnt in coordination with the risk supervision, regulation and compliance committee. Moreover, reviewed specific incidents outside the Group according to their relevance and impact. • Received regular updates on cybersecurity risks, including the status of main metrics and the implementation of associated controls. • Reviewed external threats such as ransomware and analysed the strategy designed to shorten data recovery time and reduce its potential impact. | | Information for general meetings and corporate documents | | | | Corporate documents for 2025 | | • Prepared this activities report on 14 January 2026 , which includes a performance review of the committee's 2025 functions and actions taken, as well as key priorities identified for 2026. The board of directors approved it on 24 February 2026. | #### 2026 Priorities The committee set these priorities for 2026: • Continue to support the consolidation of the Group’s innovation strategy, including the embedding of our operating model based on a global-local organization through our own global technology platform, with the aim of maximizing synergies and ensuring operational consistency. • Continue to drive the Group's 'data & AI-first' strategy, with a particular focus on the development of key initiatives across the five global businesses to enhance decision-making, and improve customer experience and drive operational savings. As part of that, continue to support the innovation strategy through an appropriate equilibrium between developing internal capabilities and selective alliances. • Remain apprised of emerging technologies and their potential business impact. Continue monitoring trends in the technology ecosystem and associated developments in the financial sector and market players’ activities, including technology companies. • Continue to reinforce coordination with the risk supervision, regulation and compliance committee in the oversight of technological risks, including those related to technological innovation, cybersecurity risks, as well as those inherent to third- party management and operational resilience. • Continue to monitor opportunities that digital assets could bring to the Group, with a key focus on collaborative initiatives already in place, assessing their associated risks and ensuring alignment with supervisory and regulatory expectations. • Remain focused on discharging its role in the most tangible and effective manner. Annual report 2025321 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 4.11 International advisory board #### Composition The chart below shows the composition of the International advisory board, with an overview of its members' experience. | | | | | --- | --- | --- | | | | | | | | | | | Sheila C. Bair Former Chair of the Federal Deposit Insurance Corporation and former President of Washington College. | | | | | | | | | | | --- | --- | --- | | | | | | | | | | | Francisco D’Souza Managing Partner and co-founder at Recognize. | | | | | | | | | | | --- | --- | --- | | | | | | | | | | | Carolyn Everson Director at The Coca-Cola Company, The Walt Disney Company and Under Armour. Former President of Instacart and former vice-president of Global Business Group at Facebook (Meta). | | | | | | | | | | | --- | --- | --- | | | | | | | | | | | José Fernández da Ponte President and Chief Growth Officer of the Stellar Development Foundation. Former Senior Vice President and General Manager of Blockchain, Crypto, and Digital Currencies at PayPal. | | | | | | | | | | | --- | --- | --- | | | | | | | | | | | Juan Ignacio Gallardo Thurlow Chair of Organización Cultiba, Grupo Azucarero México and Grupo GEPP (PepsiCo bottling company in Mexico). | | | | | | | | | | | --- | --- | --- | | | | | | | | | | | George Kurtz Founder of CrowdStrike. Former Chief Technology Officer of McAfee. | | | | | | | | | | | --- | --- | --- | | | | | | | | | | | Mike Rhodin Director of Acoustic. Former board member of TomTom Symbotic, Precisely and HZO, and former Senior Vice President of IBM. | | | | | | | | | | | --- | --- | --- | | | | | | | | | | | Nadia Schadlow Senior fellow of Hudson Institute. Former Deputy National Security Advisor for Strategy and former Assistant to the President of the United States. | | | | | | | | | | | --- | --- | --- | | | | | | | | | | | James Whitehurst Chair of Unity Technologies. Former President of IBM and former CEO of Red Hat. | | | | | | | | | | | --- | --- | --- | | | | | | | | | | | Jaime Pérez Renovales SECRETARY | | | | | | #### Functions The international advisory board provides the Group with expert insight primarily into innovation, digital transformation, cybersecurity and new technologies, as well as into capital markets, corporate governance, branding, reputation, regulation and compliance. Its members are external and not members of the board. They are prominent and respected international leaders who have extensive experience in the most relevant areas to the Group's strategy, in particular in the US and European markets. #### Meetings The international advisory board meets at least twice a year. In 2025, it met in May and October. It addressed key strategic topics of our transformation agenda within the current macroeconomic environment. In particular, it covered the opportunities and implications of our data & AI strategy. In addition, the international advisory board conducted in-depth analysis on certain global businesses, with a special focus on innovation and value-added solutions in the payments ecosystem, as well as the opportunities that various digital assets may represent for the Group. Annual report 2025322 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 4.12 Related-party transactions and other #### conflicts of interest #### Related-party transactions This section contains the related-party transactions report referred to in recommendation 6 of the Spain's Corporate Governance Code and that the audit committee issued on 19 February 2026. #### Directors, senior managers and shareholders In accordance with Spanish Law and the Rules and regulations of the board, the approval of related-party transactions, i.e. those carried out by Banco Santander or its subsidiaries with directors, shareholders who hold at least 10% of voting rights or sit on the board (although Banco Santander does not have any shareholders with these characteristics), or parties considered 'related parties' under the International Financial Reporting Standards, corresponds to: • shareholders at the general meeting if the value of the transaction is equal to or greater than 10% of the assets on the last consolidated balance sheet; or • the board of directors in all other cases. Pursuant to the statutory authorization established for these purposes and to the Rules and regulations of the board, as well as on the audit committee’s recommendation, our board delegated authority to bodies, committees and competent proxies to approve related-party transactions that meet these requirements: • they are carried out under agreements with standard terms that would generally apply to customers who contract for the same product or service; • they are made at prices or rates set by the supplier of such products or services or, where such products or services have no set prices or rates, under regular market conditions as in business relations with similar customers; and • they do not exceed 0.5% of the net annual income as stated in the last consolidated financial statements approved at the general meeting. With regard to related-party transactions that have been delegated, the board approved an internal reporting and monitoring procedure under which twice a year the audit committee oversees the suitability of the information on the related-party transactions carried out, confirms their fairness and transparency, and assesses their proper approval, before reporting its findings to the board. The board also has an internal approval mechanism for non- banking and other transactions that do not meet the three delegation requirements. It sets out the conditions that these transactions must comply with in order to protect corporate interest. The board and audit committee check that transactions with related parties are fair and reasonable to Banco Santander and, where applicable, to shareholders other than the relevant related party. If a related-party transaction must be approved at the general meeting or by the board, the audit committee must issue a preliminary report about it in the terms set out by law. However, the law does not require this report for related-party transactions that are approved under the board's delegated authority and meet the audit committee’s requirements. Board members must recuse themselves from all deliberations and votes on resolutions about a related-party transaction if they have a conflict of interest with it. In 2025, the audit committee, in the course of its duties, found that no director or senior manager, nor any related party as defined under the International Financial Reporting Standards, carried out transactions with Banco Santander or its subsidiaries that were deemed significant or material to the entity or to the related party, or under non-market conditions. The audit committee confirmed that all related-party transactions in 2025, including those authorized with delegated board powers, had been performed correctly. It conducted a bi-annual review of their conformity to the law and the Rules and regulations of the board, and to the conditions set by board resolution. It verified the transactions' alignment with the internal reporting and monitoring procedure, that they met the fairness and transparency requirements established in the aforementioned rules, and that they were fair, reasonable and carried out under market conditions (see the audit committee activities report under section [4.5 'Audit](#i6ecb2a0d58d04b53bfadfa2a833efaa7_535) [committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_535)). Banco Santander has a policy for the admission, authorization and monitoring of financing transactions by Banco Santander or any of its Group entities to directors and senior managers as well as to their spouse (or similar partner), a child who is a minor or is financially dependent, or a company controlled by a director or a senior manager whose business is to hold assets for the sole purpose of managing their personal or family wealth. The policy sets out general maximum borrowing rules, interest rates and other conditions that apply to related-party transactions, which are similar for all other employees. It dictates that such transactions must be approved by the board. In addition, loans, credit facilities and guarantees granted by Banco Santander to its directors and senior managers must be subsequently authorized by the ECB, except in case of transactions made: • under a collective agreement signed by Banco Santander, with similar terms and conditions to transactions with any employee; or • under agreements with standard conditions that generally apply to a large number of customers, if the amount granted to the beneficiary or their related parties does not exceed EUR 200,000. Note [5.f) 'Loans'](#ife41ae067f2c4d8fa0afb163aea8070b_35775) to the consolidated financial statements describes the direct risk Grupo Santander maintained with board members as at 31 December 2025. The terms and conditions of these transactions are consistent with market conditions or with those entered into with employees, and allocate payments in kind where appropriate. #### Intra-group transactions The law does not consider direct or indirect transactions with a wholly-owned subsidiary to be 'related-party', nor does it transactions with other subsidiaries or investees provided that no party related to Banco Santander holds an interest in such subsidiary or investee. Thus, Santander monitors subsidiaries or Annual report 2025323 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | investees’ observance of the related-party transactions rules if they can be affected by a conflict of interest. The rules and approval bodies and procedures that apply to intragroup transactions are the same as for transactions with customers. There are control mechanisms in place to ensure they are conducted under market conditions. Note [53 'Related parties'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1240) to the consolidated financial statements and note 47 'Related parties' to the individual financial statements state the balance of transactions with associates and joint ventures, as well as with directors, senior managers and their related parties. #### Other conflicts of interest Banco Santander has internal rules and procedures for preventing and managing conflicts of interest that can arise from the Group's operations, including with directors and senior managers, as well as between Group companies. #### Directors and senior managers The Rules and regulations of the board stipulate that our directors must abstain from deliberating and voting on resolutions in which they or any persons related to them have a direct or indirect conflict of interest, and adopt necessary measures to avoid situations in which their direct or indirect interests may enter into conflict with corporate interests or their duty towards Banco Santander. Directors must refrain, amongst others, from using Banco Santander’s name or their position to exert undue influence on private transactions; using corporate assets for private purposes; using business opportunities for personal gain; obtaining favours or remuneration from others for being directors; and engaging in activities for themselves or others that will put them and Banco Santander in competition or permanent conflict. Directors must report to the board conflicts of interest, whether direct or indirect, that they or their related parties may have with Banco Santander, which are to be disclosed in the financial statements and in the corporate governance report. The nomination committee oversees compliance with the rules set from time to time to avoid potential conflicts of interest in other roles held by directors. In 2025, no director reported a conflict of interest with Santander. Nonetheless, in 2025 there were 40 abstentions in the deliberation and voting on certain matters at board and committee meetings, broken down as follows: seven instances where directors did not vote on resolutions on their re-election, or their appointment as members of the boards of companies within the Grupo Santander; 11 instances concerning remuneration; eight instances relating to a transaction between Banco Santander and a director or their family members; and 14 instances where directors removed themselves during the review of their status and suitability. Our General code of conduct and the policy on conflicts of interest for Group directors, senior management and employees set out the guidelines we follow to prevent and manage conflicts of interest that may arise. Persons subject to the conflicts of interest policy must follow the process established for such cases, informing their immediate line manager and, where appropriate, the compliance & conduct function, of the existence and nature of the conflict. The matter will be resolved by the head of the area concerned or, where it affects several areas, by the head of the areas involved. The Code of conduct in security markets (CCSM), which directors and senior managers follow, provides mechanisms to recognize and resolve conflicts of interest. It also dictates that directors and senior managers must provide the compliance function with a list of their connections (individuals and entities), and they must keep it up to date. The CCSM also dictates that directors, senior managers and related parties should not trade Grupo Santander’s securities during restricted periods (i.e. from one month prior to the announcement and publication of the quarterly, half-year or annual results). Moreover, they should not carry out opposite trades that involve the same class of securities issued by Group companies within 30 days from the time they are bought or sold. The CCSM can be found on our corporate website. #### Group companies Pursuant to the conflict of interest policy, in a conflict of interest with a listed subsidiary, Banco Santander, as the parent company, must consider the interests of all its subsidiaries and how these interests contribute to the long-term interests of both the subsidiaries and the Group as a whole, as well as the presence of minority shareholders in them. Subsidiaries should also consider the interests of Grupo Santander when making decisions within their remit. Grupo Santander structures governance on a system of rules that guarantees proper oversight over subsidiaries. We have a Group- subsidiary governance model that sets out the key rules for Group- subsidiary relations and conflict of interest resolution mechanisms. For more details, see section [7. 'Group structure and internal](#i6ecb2a0d58d04b53bfadfa2a833efaa7_586) [governance'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_586). Banco Santander is the Group’s only company listed in Spain and, therefore, we are not required to have mechanisms in place to resolve conflicts of interest with other listed subsidiaries. Annual report 2025324 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 5. Senior management team The table below shows the profiles of Banco Santander’s senior management team (Senior Executive Vice Presidents). It does not include executive directors, whose profiles are in section [4.1 'Our directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508). | | | | | --- | --- | --- | | | | | | | | | | | Daniel Barriuso GLOBAL HEAD OF RETAIL & COMMERCIAL BANKING AND GROUP CHIEF TRANSFORMATION OFFICER Daniel Barriuso joined Grupo Santander in 2017 as Global Head of Cybersecurity and Fraud Prevention. In 2023, he was named Senior Executive Vice President, Chief Transformation Officer, and Global Head of Retail and Commercial Banking. Previously, he had held several executive roles at BP, Credit Suisse and ABN AMRO. | | | | | | | | | | | --- | --- | --- | | | | | | | | | | | Julia Bayón GROUP CHIEF AUDIT EXECUTIVE Julia Bayón joined Grupo Santander in 1994 and was Head of Banesto’s International and Wholesale Banking legal service from 2001 to 2013, when she moved on to running the legal service for Global Transaction Banking, Credit and Restructuring at Banco Santander. In 2016, she became Head of Legal for Corporate & Investment Banking. In 2021, she was appointed Head of the Legal Service for Business and deputy secretary of the Banco Santander board of directors. In 2024, she became Group Senior Executive Vice President and CAE. | | | | | | | | | | | --- | --- | --- | | | | | | | | | | | Pedro Castro (\*) GROUP CHIEF RISK OFFICER Pedro Castro joined Grupo Santander in 1993, where he has held various senior management positions at Santander Portugal. He has been a member of the board of directors of the Banco Santander Totta since 2007 and has served as Vice Chair of the board and CEO since January 2019. Between 2023 and 2024, he was Regional Head of Europe for Santander Group. He also serves on the boards of Santander UK and PagoNxt since 2023. | | | | | | | | | | | --- | --- | --- | | | | | | | | | | | Juan Manuel Cendoya GROUP HEAD OF COMMUNICATIONS, CORPORATE MARKETING AND RESEARCH Juan Manuel Cendoya joined Grupo Santander in 2001 as Group Senior Executive Vice President (director general) and Group Head of the Communications, Corporate Marketing and Research division. In 2016, he was appointed Vice Chair of the board of directors and Head of Institutional and Media Relations of Santander España. Previously, he had been Head of the Legal and Tax department of Bankinter, S.A. He is a State Attorney for Spain. | | | | | | | | | | | --- | --- | --- | | | | | | | | | | | José Antonio García Cantera GROUP CHIEF FINANCIAL OFFICER José Antonio García joined Grupo Santander in 2003 as Group Senior Executive Vice President (director general) of Global Wholesale Banking of Banesto and was appointed CEO in 2006. He became Senior Executive Vice President of Global Corporate Banking at Banco Santander in 2012 and Group CFO in 2015. Previously, he had served on the board and on the management committee of Citigroup EMEA, as well as on the board of directors of Citigroup Capital Markets UK. | | | | | | | | | | | --- | --- | --- | | | | | | | | | | | Javier García-Carranza GLOBAL HEAD OF WEALTH MANAGEMENT & INSURANCE Javier García-Carranza joined Grupo Santander in 2016 as Global Head of Corporate Holdings and Investment Platforms before being appointed Global Head of Wealth Management & Insurance in 2024. Previously, he was Head of Principal Investments and Investment Banking for Europe, the Middle East and North Africa (EMEA) at Morgan Stanley. | | | | | | (\*) Appointment effective as of 1 March 2026. Pedro de Castro replaces Mahesh Aditya. Annual report 2025325 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | | | | | | David Hazell GROUP CHIEF COMPLIANCE OFFICER David Hazell joined Grupo Santander in 2012 as Chief Conduct & Compliance Officer of Santander UK. In 2018, he was named CCO of Santander Holdings USA and in 2022 took the same role at Santander Bank N.A. In 2024, he became Group Senior Executive Vice President and Group Chief Compliance Officer. Previously, he was Director of Risk and Regulation at Ernst & Young LLP (2004-2009), Director of Governance, Risk and Compliance at PricewaterhouseCoopers LLP (2009-2010), and Operational & Regulatory Risk Director at Aviva plc (2010-2012). | | | | | | | | | | | --- | --- | --- | | | | | | | | | | | José María Linares GLOBAL HEAD OF CORPORATE & INVESTMENT BANKING José María Linares joined Grupo Santander in 2017 as Senior Executive Vice President (director general) and Global Head of Corporate and Investment Banking. Previously, he served as director and senior equity analyst at Société Générale (1997-1999). He joined J.P. Morgan in 1999, where he was appointed managing director and Head of Global Corporate Banking (2011-2017). | | | | | | | | | | | --- | --- | --- | | | | | | | | | | | Mónica López-Monís GROUP HEAD OF SUPERVISORY AND REGULATORY RELATIONS Mónica López-Monís joined Grupo Santander in 2009 as General Counsel and secretary of the board of Banesto. In 2015, she was appointed Group Senior Executive Vice President (director general) of Banco Santander and Group CCO until her appointment in 2019 as Group Head of Supervisory and Regulatory Relations. Previously, she had been General Counsel at Aldeasa, S.A. She also was General Counsel at Bankinter, S.A., as well as independent director at Abertis Infraestructuras, S.A. She is a State Attorney for Spain. | | | | | | | | | | | --- | --- | --- | | | | | | | | | | | José Luis de Mora GROUP HEAD OF CORPORATE DEVELOPMENT AND FINANCIAL PLANNING José Luis de Mora joined Grupo Santander in 2003 to head the Group’s Strategic Plan Development and Acquisitions. In 2015, he was appointed Group Senior Executive Vice President (director general) and Group Head of Corporate Development and Financial Planning. He was also Head of Strategy (2019-2023) and Global Head of Digital Consumer Bank (2020-2025). | | | | | | | | | | | --- | --- | --- | | | | | | | | | | | Juan Olaizola GROUP CHIEF OPERATING & TECHNOLOGY OFFICER Juan Olaizola joined Grupo Santander in 2005 as Chief Operating Officer of Santander UK. In 2017 he was appointed Head of Technology & Operations for Spain and Europe, and in 2022 became CEO of PagoNxt Payments Hub. In 2025, he was appointed Group Senior Executive Vice President and Group Chief Operating & Technology Officer. Previously, he held various senior management positions at IBM Financial Services Consulting. | | | | | | | | | | | --- | --- | --- | | | | | | | | | | | Jaime Pérez Renovales GROUP GENERAL COUNSEL See profile in section [4.1 'Our directors'.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) | | | | | | | | | | | --- | --- | --- | | | | | | | | | | | Nitin Prabhu GLOBAL HEAD OF DIGITAL CONSUMER BANK Nitin Prabhu joined Grupo Santander in January 2025 as Senior Executive Vice President and Global Head of Digital Consumer Bank. From 2012, he worked at PayPal, holding leadership roles spanning the payments, consumer and merchant businesses, and where he became Senior Vice President of Small and Medium Sized Businesses and Financial Services Products. Prior to PayPal, he worked at eBay and consulted with Fortune 1000 companies globally. | | | | | | | | | | | --- | --- | --- | | | | | | | | | | | Manuel Preto GROUP CHIEF ACCOUNTING OFFICER Manuel Preto joined Grupo Santander in 1996 and has held various positions at Santander Portugal and in the Group. In 2019, he was appointed deputy CEO, CFO and Head of Strategy of Santander Portugal. In 2025, he was appointed Group Senior Executive Vice President and GAO Officer. | | | | | | | | | | | --- | --- | --- | | | | | | | | | | | Javier Roglá GROUP HEAD OF PEOPLE, CULTURE & ORGANIZATION Javier Roglá joined Grupo Santander in 2016 as Global Head of Santander Universities and CEO of Universia. In 2021 he became Group Senior Executive Vice President and Chief Talent Officer, and in 2024 was appointed Head of the Group’s People, Culture & Organization division. He was a member of the board of Teach for All (2017-2025) and previously a business development consultant at Endesa and principal at Boston Consulting Group, as well as co-founding and running Fundación Empieza por Educar. | | | | | | Annual report 2025326 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 6. Remuneration Sections [6.1](#i6ecb2a0d58d04b53bfadfa2a833efaa7_565) , [6.2](#i6ecb2a0d58d04b53bfadfa2a833efaa7_568), [6.3](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571) , [6.5](#i6ecb2a0d58d04b53bfadfa2a833efaa7_577) , [6.6](#i6ecb2a0d58d04b53bfadfa2a833efaa7_580) , [6.7](#i6ecb2a0d58d04b53bfadfa2a833efaa7_583) , [9.4](#i6ecb2a0d58d04b53bfadfa2a833efaa7_631) and [9.5](#i6ecb2a0d58d04b53bfadfa2a833efaa7_634) comprise the annual report on directors’ remuneration that will be submitted to the consultative vote of the general shareholders' meeting. Likewise, sections [6.4](#i6ecb2a0d58d04b53bfadfa2a833efaa7_574) and [6.5](#i6ecb2a0d58d04b53bfadfa2a833efaa7_577) set out the directors' remuneration policy for 2026 , 2027 and 2028, which will be put to the binding vote of the general shareholders' meeting. The annual report on directors' remuneration and the directors' remuneration policy for 2026 , 2027 and 2028 were approved by the board of directors on 24 February 2026 . All directors were present at the time of vote casting and voted in favour. The remuneration policy for directors in force as of the date of this report is available on our corporate website. #### Introduction #### Brief summary of strategic accomplishments in 2025 • Banco Santander reported an attributable profit of €14,101 million in 2025, up 12% year-on-year (or +16% in constant euros), marking another record year, with total customers reaching 180 million for the first time after adding eight million customers in the year. Strong results were driven by resilient net interest income, record fees and efficiency gains, with continued improvement in credit quality. • The group continued to increase profitability and create value for shareholders, achieving a RoTE of 16.3% (+0.8 percentage points) post-AT1, EPS of €0.91 (+17%) and TNAV per share of €5.76 at year-end 2025. Including cash dividends paid during the year, total value creation (TNAV plus cash dividend per share) rose by 14%. • These accomplishments enabled us to exceed our strategic goals set for 2025 bonus pool, mainly in capital and recurrence ratios and customer growth, so the total variable remuneration of the executive directors increased by 7% compared to the previous year. This increase was approved by the board of directors, taking into account a context of strict cost discipline, which once again led to a reduction in the proportion represented by executive directors’ total remuneration relative to the underlying attributable profit (down to 0.17% this year). Active shareholder engagement and evolution of the #### remuneration policy In light of the voting results at the 2024 AGM, where support for the remuneration policy fell to a record low, the board launched active shareholder engagement to strengthen alignment between the remuneration framework, investor expectations, and sustainable, long-term value creation. Throughout 2024, the Group continued to engage fully with our top institutional investors and proxy advisors (ISS and Glass Lewis), which our Lead Independent Director and Chair of the remuneration committee, Glenn Hutchins, led on. The aim was to understand what influenced the voting outcome, assess investor expectations regarding pay and performance alignment, and identify areas for improvement in our remuneration framework. The feedback we received led to several amendments to the remuneration policy for 2025. These amendments sought to strengthen the link between remuneration and performance, increase the weighting of long-term incentives, raise the level of performance requirements linked to total shareholder return, and increase the proportion of variable remuneration paid in instruments. The significant upturn in the 2025 AGM voting results demonstrates investors’ appreciation of the engagement that the board undertook, as well as the board’s and the remuneration committee’s responsiveness to the feedback and concerns raised. The global proposals put forward received 98.7% of votes in favour, while support for the remuneration policy soared from 74.8% in 2024 to 96.35% in 2025. In line with best corporate governance practices, Banco Santander continued to engage with shareholders and proxy advisors throughout 2025. Investors broadly viewed the amendments to the 2025 remuneration policy as positive and didn’t raise the need for additional amendments to the key elements we addressed last year. Thus, the proposed remuneration policy for 2026 centres on further aligning the remuneration framework with the strategic priorities that we presented at the 2026 Investor Day. The Group reviewed the structures of both short- and long-term incentives and their associated metrics and weightings to make sure that they foster the execution of our strategy and sustainable, long-term shareholder value. Moreover, in line with investor feedback, Banco Santander has further progressed in simplifying the quantitative and qualitative components of the bonus scorecard to increase clarity and understanding. The board considers that this approach consolidates a stable and transparent remuneration framework that aligns well with the new strategy, reinforces pay-for-performance principles, supports long-term performance, and continues to match shareholders’ expectations. Annual report 2025327 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | As part of our commitment to transparency and shareholder engagement, Banco Santander’s 2025 report even builds on the detail regarding the process that the remuneration committee follows to draw up the remuneration policy and set executive director remuneration. In particular, the report continues to provide clear information on the criteria we used to select our peer group and conduct the annual review of directors’ remuneration to ensure that our remuneration policy remains competitive and consistent with best sector practice, and strengthens alignment with performance and sustainable, long-term shareholder value creation. #### 6.1 Principles of the remuneration policy #### Directors' remuneration in their capacity as such The board of directors sets the individual remuneration of directors (including executive directors) for the performance of supervisory and collective decision-making duties within the amount fixed by shareholders and commensurately with the roles they perform on the collective decision-making body, their committee membership and attendance, and other objective circumstances the board might consider. #### Remuneration of directors for executive duties Banco Santander’s remuneration policy for executive duties (which also generally applies to Banco Santander employees) dictates that: | | | | | --- | --- | --- | | | | | | 1 | | Remuneration must be in line with shareholders and customers' interests, conducive to creating long-term value and compatible with our rigorous risk management, long-term strategy and values, as well as with maintaining a sound capital base. | | | | | | 2 | | Fixed remuneration must make up a significant proportion of total compensation. | | | | | | 3 | | Variable remuneration must reward performance for achieving individual, business unit and, as the case may be, Group targets. | | | | | | | | | | --- | --- | --- | | | | | | 4 | | The global remuneration package and its structure must be competitive in order to attract and retain talent. | | | | | | 5 | | Remuneration decisions must be free of conflicts of interest and discrimination of any kind different from that based on the performance assessment of objectives and corporate behaviours. Remuneration must be free of gender-based bias and help eliminate inequalities that could result from it. | The remuneration elements the policy lays down include necessary mechanisms to ensure remuneration will be conducive to achieving strategic and long-term sustainability objectives of Banco Santander. Accordingly, it bases executive directors and senior managers’ variable pay on pre-determined, specific and quantifiable financial, sustainable and value-creation targets that are consistent with Banco Santander’s interests, including in regard to environmental, social and governance matters. For more details, please see section [6.3 'Remuneration of directors](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571) [for executive duties'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571) about the policy's application in 2025 and section [6.4 'Directors' remuneration policy for 2026, 2027 and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_574) [2028'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_574) about the remuneration policy for 2026 and subsequent years. Lastly, the remuneration committee and the board enlisted the assistance of Willis Towers Watson to: • Compare markets and entities similar to the Group in size, characteristics and operations using relevant data for setting remuneration. • Estimate the fair value of variable remuneration linked to long- term objectives. 6.2 Remuneration of directors for supervisory and collective decision- #### making duties: policy applied in 2025 A. Composition and limits According to our Bylaws, the remuneration of directors in their roles consists of a fixed annual amount set at the general shareholders' meeting. This amount remains in effect until shareholders vote to amend it, even though the board may reduce it in the years it deems appropriate. At the AGM, remuneration for 2025 was set at EUR 6 million (a limit that has not been updated since 2012 and whose amount finally consumed has been systematically lower), which included (a) an annual allotment and (b) attendance fees. Santander has taken out a civil liability insurance policy for directors and other executives of the Group, subject to usual terms proportionate to its circumstances. Directors can receive shares, share options or other forms of share- based compensation, subject to prior approval at the general meeting. Directors can also receive other compensation following a proposal made by the remuneration committee and upon resolution by the board of directors, as may be deemed appropriate, in consideration for the performance of other duties in Banco Santander, whether they are executives' duties or not, in addition to their oversight and collective decision-making as board members. None of the non-executive directors are entitled to receive any benefit on the occasion of their removal from office. Annual report 2025328 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | B. Annual allotment For 2025, the board of directors, upon the recommendation of the remuneration committee, approved a 3% increase in the annual allotments payable to the chair and members of the board and its committees (including the executive committee), as well as to the lead independent director and the non-executive Vice Chair. Each director received, in respect of 2024 and 2025, the amounts corresponding to their service on the board and its committees, with such amounts determined by the specific position held, as detailed in the table below. | | | | | --- | --- | --- | | | | | | Amount per director in euros | 2025 | 2024 | | Members of the board of directors | 100,940 | 98,000 | | Members of the executive committee | 175,100 | 170,000 | | Members of the audit committee | 44,290 | 43,000 | | Members of the nomination committee | 28,840 | 28,000 | | Members of the remuneration committee | 28,840 | 28,000 | | Members of the risk supervision, regulation and compliance committee | 44,290 | 43,000 | | Members of the responsible banking, sustainability and culture committee | 28,840 | 28,000 | | Members of the innovation and technology committee | 28,840 | 28,000 | | Chair of the audit committee | 72,100 | 70,000 | | Chair of the nomination committee | 51,500 | 50,000 | | Chair of the remuneration committee | 51,500 | 50,000 | | Chair of the risk supervision, regulation and compliance committee | 72,100 | 70,000 | | Chair of the responsible banking, sustainability and culture committee | 51,500 | 50,000 | | Chair of the innovation and technology committee | 72,100 | 70,000 | | Lead independent directorA | 113,300 | 110,000 | | Non-executive Vice Chair | 30,900 | 30,000 | A. Glenn Hutchins has been allocated a total annual remuneration of EUR 700,000, including annual allotments and attendance fees, in consideration of the time commitment and dedication required to perform his roles. C. Attendance fees In line with the adjustment to the annual allotments, the board of directors approved a 3% increase in attendance fees for 2025 compared with 2024. Accordingly, attendance fees for meetings of the board and its committees (with the exception of the Executive Committee, for which no attendance fees are payable) amounted, for the last two years, to the totals set out in the table below. | | | | | --- | --- | --- | | | | | | Attendance fees per director per meeting in euros | 2025 | 2024 | | Board of directors | 2,785 | 2,704 | | Audit committee and risk supervision, regulation and compliance committee | 1,821 | 1,768 | | Other committees (excluding executive committee) | 1,606 | 1,560 | Annual report 2025329 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### D. Breakdown of Bylaw-stipulated emoluments Total director Bylaw-stipulated emoluments and attendance fees received amounted to EUR 5.3 million in 2025 (EUR 5.4 million in 2024). Despite the approved increase in annual allotments and attendance fees, total remuneration for non-executive duties in 2025 remained below both the maximum amount authorised by the Annual General Meeting (EUR 6 million, representing a 12% reduction over this amount) and the 2024 amount. This decrease was primarily driven by a reduction in the number of Board and committee meetings held during the year, following efficiency and governance simplification initiatives. Each director received the following amounts in respect of these items: | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | Bylaw-stipulated emoluments by director | | | | | | | | | | | | | | | | | | | | Amount in euros | | | | | | | | | | | | | | Directors | | | 2025 | | | | | | | | | | | | 2024 | | | | Annual allotment | | | | | | | | | Board and committee attendance fees | Total By-law stipulated emoluments and attendance fees | | | | Category | | BoardF | EC | AC | NC | RC1 | RSRCC2 | RBSCC | ITC | Total | | | Ana Botín | Executive | | 100,940 | 175,100 | — | — | — | — | — | 28,840 | 304,880 | 43,810 | 348,690 | | 368,416 | | Héctor Grisi | Executive | | 100,940 | 175,100 | — | — | — | — | — | 28,840 | 304,880 | 43,810 | 348,690 | | 352,472 | | José Antonio Álvarez | Other external | | 131,840 | 175,100 | — | — | — | 44,290 | — | 28,840 | 380,070 | 67,268 | 447,338 | | 382,472 | | Glenn Hutchins | Independent | | 412,342 | — | — | 28,840 | 80,340 | — | — | 100,940 | 622,462 | 77,538 | 700,000 | | 700,000 | | Homaira Akbari | Independent | | 100,940 | — | 44,290 | — | — | — | 28,840 | 28,840 | 202,910 | 80,762 | 283,672 | | 285,088 | | Javier BotínA | Other external | | 100,940 | — | — | — | — | — | — | — | 100,940 | 36,207 | 137,147 | | 143,968 | | Sol Daurella | Independent | | 100,940 | — | — | 28,840 | 28,840 | — | 80,340 | — | 238,960 | 74,752 | 313,712 | | 292,171 | | Henrique de Castro | Independent | | 100,940 | — | 44,290 | — | 28,840 | — | — | 28,840 | 202,910 | 80,332 | 283,242 | | 300,064 | | Gina Díez | Independent | | 100,940 | — | — | 28,840 | — | — | 28,840 | — | 158,620 | 63,083 | 221,703 | | 224,928 | | Luis Isasi | Other external | | 100,940 | 175,100 | — | — | 28,840 | 44,290 | — | — | 349,170 | 73,693 | 422,863 | | 439,776 | | Belén Romana | Independent | | 100,940 | 175,100 | 44,290 | 80,340 | — | 44,290 | — | 28,840 | 473,800 | 107,003 | 580,803 | | 598,888 | | Pamela Walkden | Independent | | 100,940 | — | 44,290 | — | — | 116,390 | 28,840 | — | 290,460 | 92,548 | 383,008 | | 380,246 | | Germán de la Fuente | Independent | | 100,940 | — | 116,390 | — | — | 44,290 | — | — | 261,620 | 82,697 | 344,317 | | 338,000 | | Carlos Barrabés B | Independent | | 100,940 | — | — | 28,840 | — | — | 28,840 | 28,840 | 187,460 | 71,113 | 258,573 | | 128,179 | | Antonio WeissC | Independent | | 100,940 | — | — | — | 28,840 | — | — | — | 129,780 | 50,234 | 180,014 | | 71,721 | | Bruce Carnegie- Brown D | Independent | | — | — | — | — | — | — | — | — | — | — | — | | 77,875 | | Ramiro MatoE | Independent | | — | — | — | — | — | — | — | — | — | — | — | | 271,208 | | Total | | | 1,856,402 | 875,500 | 293,550 | 195,700 | 195,700 | 293,550 | 195,700 | 302,820 | 4,208,922 | 1,044,850 | 5,253,772 | | 5,355,470 | A. All amounts received were reimbursed to Fundación Botín. B. Director and member of the NC, RBSCC and ITC since 27 June 2024. C. Director since 27 June 2024. D. Stepped down as director on 22 June 2024. E. Stepped down as director on 27 March 2024. F. Also includes emoluments for other roles in the board. Executive committee (EC), Audit committee (AC), Nomination committee (NC), Remuneration committee (RC), Risk supervision, regulation and compliance committee (RSRCC), Responsible banking, sustainability and culture committee (RBSCC), Innovation and technology committee (ITC). Changes in the chairship or membership of the committees: 1. Antonio Weiss was appointed member of the RC on 1 January 2025. 2. José Antonio Álvarez was appointed member of the RSRCC on 1 January 2025. Annual report 2025330 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 6.3 Remuneration of directors #### for executive duties #### i) How we set executive directors pay In Banco Santander we set the remuneration structure for executive directors by considering company performance as well as Santander's unique individual circumstances such as multiple stock exchange listings, the wide geographical distribution of the company’s operations, sales and employees, and the clear industry-specific pressures in terms of talent attraction and retention. As explained below, we conduct an annual benchmarking analysis for the Executive Chair and CEO positions in order to establish a framework of reference for what competitors are paying. #### ii) How we determine our peer group Banco Santander conducts an annual comparative review of executive directors’ and top management remuneration against a peer group comprised of global banks. Because we have extensive international operations and we compete for talent on a global scale, our peer group reflects these characteristics. While two- thirds of the companies in our comparator group are European, we include banks from the Brazil and US due to the strong presence of Santander in those countries (this presence is expected to be further strengthened, subject to obtaining the relevant regulatory and corporate approvals, following the acquisition of Webster, announced on 3 February 2026). For instance, nearly 50% of revenue and over 60% of total customers came from the Americas in 2025, making this region a critical market for us both from a business perspective and as a source of talent. To select the peer group, Group governing bodies follows a robust process that takes into account and ranks potential peers on the following criteria: market capitalization, scale, brand recognition, geographical diversification, business model and regulatory framework.We regularly review the validity of our peer group and make the necessary changes to ensure it properly reflects our business and talent markets. Following an assessment in 2025, we determined that for 2025 our peer group should remain unchanged from 2024 and also from 2023. The group comprises the following companies: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | Spain.jpg | BBVA | | Netherlands.jpg | ING | | | | | BNP Paribas | | Brazil.jpg | Itaú | | | | US.jpg | Citi | | Canada.jpg | Scotiabank | | | | | Crédit Agricole | | Italy.jpg | Unicredit | | | | UK.jpg | HSBC | | | | | | | | | | | | | Why did we choose these banks for the peer analysis? Because the selection of these entities allows: • To ensure a comparison under similar macroeconomic and regulatory landscape. • To analyse and to identify market trends and dynamics. • To capture the latest developments in the banking industry. • To monitor banks with similar size, performance, geographic footprint, business model and strategy. • To identify outliers and best practices across the sector. Market Cap (EUR bn) at 2025 closing date | | | --- | | | | | ![2506]() #### iii) Performance-based Pay and alignment with #### shareholder value Our remuneration system is based on the pay-for-performance principle, whereby a significant portion of each executive director’s remuneration depends on the level of achievement of a set of predefined objectives, as well as on shareholder return, with no guaranteed entitlement. In this regard, variable pay outcome depends on the achievement of the entity’s targets, which are aligned with its corporate strategy and directly contribute to value creation for shareholders. The main purpose of our incentive system is to promote sustainable long-term value creation and to ensure appropriate alignment between the interests of executive directors and those of shareholders. In this sense, for year 2025: • 64% and 57% of our Executive Chair’s and CEO's total compensation, respectively, is performance-based. • 40% of our executive director’s total variable remuneration is subject to long-term metrics that include relative TSR, RoTE and other sustainability metrics and therefore strengthen the alignment of our executive director’s interests with the shareholder’s interests in the long-term. • Additionally, 60% of their variable remuneration is delivered in the form of equity instruments (mainly Banco Santander S.A. shares). Annual report 2025331 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Targets related to performance metrics are intended to be challenging, with payout levels established after considering different upside/downside scenarios, sensitivity analysis and year- over-year growth comparisons, to ensure rigorous and coherent alignment of executive payouts to performance, consistent with best practices in corporate governance. #### iv) How we include sustainability metrics in the variable #### incentive scheme The current remuneration policy incorporates mechanisms that link variable remuneration to the achievement of financial, sustainability, and value creation objectives. These objectives are specific, measurable, and aligned with the bank's interests, encompassing environmental, social, and governance (sustainability) factors. For further details, see section I. #### v) Summary of executive remuneration composition The policy on directors’ remuneration for executive duties in 2025 was approved by the board of directors and put to a binding vote at the 2025 AGM, with 96.35% votes in favour. The table below summarizes the main items of remuneration policy of Ana Botín and Héctor Grisi. | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Component | Type | | Policy | | | Effective in 2025 | | | | | | | | | | | | Gross annual salary | Fixed | | → Paid in cash on a monthly basis. | | | Ana Botín: EUR 3,435 thousand. Héctor Grisi: EUR 3,150 thousand. | | | Variable remuneration | Variable | | → Calculated on the basis of the director’s individual target bonus, the level of achievement of annual quantitative metrics, a qualitative assessment, and taking into account individual performance . → 60% of each payment is instruments, consisting of Banco Santander shares and restricted stock units (RSU) of PagoNxt, S.L. (PagoNxt). → The number of instruments is set at the time of the award. → 40% of variable remuneration is paid in 2026 . → The remaining 60% is deferred in five years and paid in 2027, 2028, 2029 , 2030 and 2031, according to the annual allocation detailed in the table below. The vesting of part of these deferred amounts (which represent 40% of the variable remuneration), depends on the achievement of long-term objectives ( 2025-2027 performance period). | | | • Ana Botín: EUR 6,382 thousand target bonus. • Héctor Grisi: EUR 4,410 thousand target bonus. • See section 6.3 B ii for details on annual metrics and assessment. • See section 6.3 B iii for details on individual variable pay. • See section 6.3 B iv for details on long- term metrics. | | | Pension scheme | Fixed | | → Annual contribution of 22% of base salary. | | | • No changes. | | | Variable | | → Annual contribution of 22% of 30% of the average of variable remuneration in the last three years. | | | • See section 6.3 C for details on annual contributions and pension balance. | | | Other remuneration | Fixed | | → Includes life, accident and medical insurance, and other in-kind compensation. → Includes, in the case of the Executive Chair, a fixed cash supplement (which is neither salary nor pensionable), introduced following the elimination of supplementary death and disability benefits. | | | • With respect to Ana Botín’s fixed remuneration supplement, which originated from the supplementary pension scheme benefits eliminated in 2018, this component expired in October 2025. • No fixed remuneration supplement is payable to Héctor Grisi. | | | | → Payment for non-compete commitment | | | No changes. | | | Shareholding policy | N/A | | → Executive directors also have the obligation to hold shares for three years from their award date, unless the director already holds shares for an amount equivalent to 200% of their net annual salary (calculated on the basis of their gross annual salary). In such case, the regulatory obligation to hold shares is for one year from their grant date. | | | • Policy updated during 2020 to assure compliance with recommendation 62 to the Spain's CNMV Corporate Governance Code. • Both Ana Botín and Héctor Grisi maintain an amount in shares higher than 200% of their fixed pay. | | Annual report 2025332 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | The following table shows the remuneration structure for 2025 of both executive directors, according to the aforementioned changes: | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | 2025 AWARD | | % 1 | | Component | | | | | | | | | | Gross Annual Salary | | 23% | | Fixed | | | | | | | | | | Board of Directors' by-law stipulated emoluments | | 2% | | Fixed | | | | | | | | | | Pension Contribution | | 9% | | Fixed & | Variable | | | | | | | | | Rest of components | | 6% | | Fixed | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | Variable remuneration ( Target Bonus x Achievement level of Bonus pool +/- Individual performance) | | 60% | | | | | | | | | | | | | | | | | | | | | | | | | Upfront | | Deferred | | | | | | | | | | | | | Cash/ Shares (%) | | | | | | | | arrowDeferred.gif | | | | | | | | | | | | | | | | | 2026 | | 2027 | | 2028 | | 2029 | | 2030 | | | 2031 | | | | | | | | 40% | | 10% | | 10% | | 13.33% | | 13.33% | | | 13.33% | | | | | | | | 20% 20% | | 5% 5% | | 5% 5% | | 3.33% 10% | | 3.33% 10% | | | 3.33% 10% | | | | | | | | | | | | | | | | | 40% 60% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 40% | | | | | | | | | | | | | | | | | | | arrow36.gif Additionally subject to long-term goals achievement | | | | | | | | | | | | | | | | | | | | | | rTSR 50% | | | RoTE 30% | | | Sustain- ability 20% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | arrowAllYellow.gif Malus/Clawback clauses arrowAllRed.gif All payments in shares2 are subject to a one-year retention period and the prohibition of hedging | | | | | | | | | | | | | | | | | | Cash    Shares ![EuroAccount.jpg]() ![SantanderFlameBranch.jpg]() 1. Example with Executive Chair 2025 percentages over total remuneration. 2. Executive directors also have the obligation to hold them for three years from their award date, unless the director already holds shares for an amount equivalent to 200% of their net annual salary (calculated on the basis of their gross annual salary). In such case, the regulatory obligation to hold shares is for one year from their grant date. ![]() 1 As indicated in the first chart in section [6.3 'Remuneration of directors for executive duties'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571) pension contributions include both fix and variable components, the latter of which also form part of total variable remuneration. Annual report 2025333 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | A. Gross annual salary As part of the annual review of the target compensation of our executive directors, and on the remuneration committee's recommendation, the board decided not to increase their gross annual salaries for year 2025. Fixed pension contribution continued to be 22% of gross annual salary for 2025. Ana Botín’s fixed remuneration supplement expired in October 2025, when she reached the age of 65 initially set at the time this remuneration component was approved. Executive directors’ gross annual salary, fixed remuneration supplement and fixed annual contribution to pensions for 2025 and 2024 were as follows: | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | Gross annual salary and other fixed remuneration | | | | | | | | | | | EUR thousand | 2025 | | | | | 2024 | | | | | Gross annual salary | Fixed remuneration supplement | Fixed annual pension contribution | Total | | Gross annual salary | Fixed remuneration supplement | Fixed annual pension contribution | Total | | Ana Botín | 3,435 | 399 | 756 | 4,590 | | 3,435 | 525 | 756 | 4,716 | | Héctor Grisi | 3,150 | — | 693 | 3,843 | | 3,150 | — | 693 | 3,843 | | Total | 6,585 | 399 | 1,449 | 8,433 | | 6,585 | 525 | 1,449 | 8,559 | B. Variable remuneration i) General policy for 2025 The 2025 variable remuneration of the executive directors (tenth cycle of the deferred multiyear objectives variable remuneration plan) was approved in early 2026 in accordance with the Directors’ remuneration policy approved by the Annual General Meeting on 4 April 2025. Under this policy, the Variable components 1 of total remuneration may not exceed 200% of fixed remuneration, as established by resolution of the AGM. Pursuant to the policy, the final individual variable remuneration for each executive director is established by reference to the overall bonus pool outcome for 2025, their respective target bonus opportunity and an assessment of their individual performance. The 2025 bonus pool outcome reflects: • Performance against short-term quantitative metrics, measured by reference to the level of achievement of annual objectives related. • A qualitative assessment, which may adjust the quantitative result by no more than ±35 percentage points. Although based on qualitative indicators, this assessment is not discretionary; it relies on objective, measurable and audited goals, as described below. • Any exceptional adjustment, where applicable, which must be duly justified and supported by evidence Further details on the 2025 bonus pool outcome are provided in the section below. Individual performance, which was evaluated based on: (i) the level of achievement of individual objectives aligned with the Group’s strategic priorities, including, among others, objectives relating to the advancement of the Group’s global operating model and transformation agenda, oversight of the Group’s inorganic strategy, external engagement with key stakeholders, and leadership of the People Agenda; and (ii) how those objectives were achieved (the 'How' dimension), which takes into account, among other factors, adherence to the Group’s corporate behaviours and leadership style. Accordingly, the positive or negative result of the individual performance may decrease or increase the amount resulting from the individual target bonus multiplied by the result of the quantitative and qualitative metrics. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | Individual target bonus | | Quantitative metrics and qualitative assessment A | | Individual performance | | Final individual variable remuneration | A. Any exceptional adjustment supported by evidence • Payment of the approved incentive is paid 40% in cash and 60% in instruments, the latter as follows: • EUR 500,000 and EUR 420,000 in PagoNxt RSU for Ana Botín and Héctor Grisi, respectively. • The rest, all in shares of Banco Santander. • 40% is paid in 2026, once the final amount has been set. The remaining 60% will be deferred over five years (subject to long- term metrics) as follows: • The deferred amounts payable in 2027 and 2028 (20% of the total), will be paid if none of the malus clauses described below are triggered. • The deferred amounts payable in 2029, 2030 and 2031 (40% of the total), will be paid if the malus clauses are not triggered and the multi-year targets described below are reached. These targets can reduce these amounts and the number of deferred instruments or increase them up to a maximum achievement ratio of 125%, so executives have the incentive to exceed their targets. • Deferred amounts in cash may be adjusted for the inflation related to the deferral period. • All payments in shares are subject to a three-year retention period, unless the director already holds shares for an amount equivalent to twice his/her annual net annual salary (based on his/her gross annual salary), in which case the shares would be subject only to the regulatory one-year retention period obligation. Annual report 2025334 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | • The hedging of the instruments received during the retention and deferral periods is expressly prohibited. The sale of shares is also prohibited for one year from time they are received. • All deferred payments can be subject to malus. Similarly, Santander can claw back paid incentives in the scenarios and for the period dictated in the Group’s malus and clawback policy. #### ii) Quantitative metrics and qualitative assessment #### for2025 Executive directors’ variable remuneration for 2025 is based on the bonus pool, determined by reference to performance against short-term quantitative metrics and a qualitative assessment. The resulting outcome was reviewed and approved by the board, upon recommendation of the remuneration committee. This process also incorporates input from the human resources committee, which, for this purpose, includes senior management responsible for the Grupo Santander’s Risk, Compliance, Audit, People, Culture and Organization, Legal, and Financial Accounting and Management Control functions. These functions, among others, provided input on risk, solvency, liquidity, the quality and sustainability of results, and compliance and control matters. Details of the performance against the quantitative metrics and the qualitative assessment underpinning the bonus pool are set out below. | | | | | | --- | --- | --- | --- | | | | | | | Category and weight of Bonus pool | A. Quantitative metrics A | | | | Targets | Achievement over target | Assessment | | Transformation: (45%) | Active customers (growth) (10%) | Target: 3.31 million. Achievement: 3.18 million. | 95.89% | | Cost per active customer (15%) | Target: €245.30. Achievement: €241.02. | 120.46% | | Fees over Costs (recurrence ratio) (20%) | Target: 2.45. Achievement: 3.13 | 150.00% | | | | | | | Capital (25%) | Capital generation (CET1 ratio) | Target: 13.00%. Achievement: 13.46% | 199.00% | | | | | | | Sustainable profitability (30%) | RoRWA (Return on risk weighted assets) SVA | Target: 1.97%. Achievement: 2.09%. | 116.91% | | TOTAL metrics | | | 142.48% | A. For this purpose, these metrics may be adjusted upwards or downwards by the board, following a proposal from the remuneration committee, when inorganic transactions, material changes to the Group’s composition or size or other extraordinary circumstances (such as extraordinary impacts of macroeconomic environment, impairments, restructuring procedures or regulatory changes) have occurred which affect the suitability of the metric and achievement scale established in each case and resulting in an impact not related to the performance of the executive directors and executives being evaluated. | | | | | --- | --- | --- | | | | | | B.  Qualitative assessment | | | | Indicators | Level of achievement | Assessment | | Performance vs. Market (+/- 10%) | The Group once again delivered record results in 2025, achieving a new all-time high profit for the fourth consecutive year. Compared with our main competitors: i) we maintained a similar performance in terms of profitability adjusted to cost of risk (NIM-CoR); ii) we outperformed on costs, supported by the benefits of ONE Transformation, which were reflected in our cost discipline compared to the average cost increase of our peers; and iii) we continued to enhance our profitability (RoTE), maintaining a gap of more than two percentage points above the peer average. By business, Retail delivered strong performance, with positive momentum across most metrics, while CIB posted excellent fee performance, while at the same time maintaining a leadership position in terms of efficiency and profitability. | +1.60% | | Network Collaboration (+/- 10%) | The global businesses (CIB, Wealth and Payments) delivered strong revenue growth in 2025, with double-digit fee income increases driven by network effects and enhanced capabilities. The underlying momentum reflects continued progress in strengthening cross-business connectivity and execution, although performance against the network collaboration metric did not fully meet the highly ambitious target set for the year. | (0.50%) | | Compliance and Risk (+/- 10%) | In 2025, risk management was strengthened through sharper data-driven oversight, tighter integration of risk appetite into decision-making, advanced monitoring of geopolitical and market volatility risks and enhanced risk- reward discipline across portfolios, while the NPL ratio was kept under the 3.5% prudential threshold, maintaining a stable cost of risk and reinforcing provisioning coverage. Supervisory outcomes confirming the robustness of the control framework as SREP 2025 maintained stable ratings and capital requirements. In parallel, automation, AI- enabled initiatives, and operating model optimization improved efficiency and further strengthened second-line oversight capabilities. At the same time, continued to deliver effective, enhanced, and independent oversight of all Compliance programs across Units and Global Businesses, while ensuring full adherence to applicable laws and regulations. | +0.50% | | Sustainability targets (+/- 5%) | We have exceeded the objectives established across the various areas of work in sustainability, with particular emphasis on the contribution of sustainable business and financial inclusion, driven by the strong contribution of sustainable business, which surpassed the commercial targets established to support our CIB, Retail, and Consumer clients. We also made progress in the implementation of financial inclusion, financial health, and community support initiatives. | +1.40% | | TOTAL qualitative assessment | | +3.00% | | | | | | | | | | C. Exceptional adjustment approved by board of directors upon recommendation of remuneration committee | No discretionary or exceptional adjustment applied to the 2025 bonus pool outcome | 0% | | | | | | Final bonus pool 2025 | | 145.48% | 2 For this purpose, ONP is attributed ordinary net profit, adjusted upwards or downwards for transactions the board believes have an impact not connected to the performance of evaluated directors, for which extraordinary profit, corporate transactions, impairments, or accounting or legal adjustments that may occur during the year are evaluated. The exclusion in the calculation for these purposes of goodwill impairments is aligned with the supervisors' criteria on their recommendations on dividend distributions. Annual report 2025335 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | The total payout reflects the level of achievement against the quantitative metrics (142.48%) together with the outcome of the qualitative assessment (+3.00%). No exceptional adjustment was approved for 2025. The combined effect of these components results in the final bonus pool outcome for 2025 (145.48%), expressed as a percentage of target bonus. A + B +C = Final bonus pool result in 2025 (as a percentage of target). #### iii) Determination of the individual variable remuneration #### for executive directors set in2025 The board approved executive directors' variable remuneration for 2025 on the remuneration committee’s recommendation. In accordance with the 2025 Remuneration Policy approved by the AGM, variable remuneration is determined by reference to: (i) the bonus pool outcome described above, (ii) each executive director’s individual target bonus, and (iii) the assessment of individual performance. In assessing individual performance, the board considered, among others: • Record performance and full strategic delivery 2025 marked a fourth consecutive year of record attributable profit (EUR 14.1 bn), with strong revenue growth across global businesses and full delivery of the financial and strategic commitments set at the previous Investor Day. • Exceptional shareholder value creation: performance translated into the best total shareholder return (+132% in absolute terms, +60% relative to peers), positioning Santander as the largest bank by market capitalisation in the Eurozone and reflecting sustained market confidence in the Group’s strategy and leadership. • Disciplined execution of portfolio strategy: the sale of Santander Poland and the announced acquisitions of TSB (UK) and Webster (US) (subject to regulatory and corporate approvals) demonstrate active portfolio management and disciplined capital allocation to enhance long-term profitability and shareholder value. The board also evaluated the leadership of the Executive Chair and the Chief Executive Officer in delivering these results, the level of achievement of their individual objectives and the manner in which those objectives were delivered. On the basis of this assessment, it determined that both executives achieved an 'Exceptional' level of individual performance. In accordance with the governance set out in the remuneration policy, and taking into account this 'Exceptional' level rating, the pool result and their target bonus, the final outcome was 157% for both. The target bonus (see table in section [6.3](#i4d2b0c05631240c2b6c2db58efb5b586_112712)) of the Executive Chair and the CEO for 2025 remained unchanged compared to 2024. Additionally, prior to approval, the Board confirmed that none of the policy conditions limiting variable remuneration were triggered: • The Group's ONP 2 for 2025 was not more than 50% less than for 2024. Otherwise, variable remuneration would not have been greater than 50% of the individual target. • The Group’s ONP was not negative. Otherwise, the incentive would have been zero. Furthermore, the ratio of executive directors’ total remuneration to underlying attributable profit fell from 0.18% in 2024 to 0.17% in 2025, as shown in section 6.3.I. Variable contributions to pensions in terms of percentage were not modified in 2025, remaining at 22% of the 30% of the last three assigned bonus' average, in compliance with Circular 2/2016 of the Bank of Spain, Standard 41, which requires that at least 15% of total contributions be linked to variable components. In this context, total executive variable remuneration increased by 7% compared to the previous year. Breakdown of immediately payable and deferred remuneration The variable remuneration approved by the board of directors, upon proposal of the remuneration committee, following the process described above (comprising the immediately payable portion, the deferred amounts not subject to long-term performance conditions and the deferred portion contingent on the achievement of long-term objectives) is set out below. | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | Immediately payable and deferred (not linked to long-term objectives) variable remuneration | | | | | | | | | | | | | | | | | | | | | | EUR thousand | 2025 | | | | | 2024 | | | | | In cash | In sharesA | In RSUA | Total | | In cash | In sharesB | In RSUB | Total | | Ana Botín | 3,004 | 2,804 | 200 | 6,009 | | 2,961 | 2,761 | 200 | 5,922 | | Héctor Grisi | 2,076 | 1,908 | 168 | 4,152 | | 2,046 | 1,878 | 168 | 4,092 | | Total | 5,080 | 4,712 | 368 | 10,161 | | 5,007 | 4,639 | 368 | 10,015 | A. The amounts in the foregoing table correspond to a total of 459 thousand shares of Banco Santander and 6 thousand RSU of PagoNxt. B. The amounts in the foregoing table correspond to a total of 1,014 thousand shares in Banco Santander and 7 thousand RSU in 2024. 3 Corresponds to the fair value of the maximum amount to be received over a total of 3 years, subject to continued service -with certain exceptions-, non- applicability of malus clauses and compliance with set goals. Fair value was estimated at the plan award date on account of several scenarios for the variables in the plan during the measurement periods. Annual report 2025336 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | The following chart states deferred variable remuneration at fair value, which will only be received in 2029, 2030 and 2031 if the long-term multi-year targets are met (see section 6.3 B iv)) and beneficiaries continue to be employed at Grupo Santander, in accordance with the terms approved in the general shareholders' meeting, and no circumstances triggering malus clauses occur 3: | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | Deferred variable remuneration linked to long-term objectives (fair value) | | | | | | | | | | | | | | | | | | | | | | EUR thousand | 2025 | | | | | 2024 | | | | | In cash | In shares A | In RSU A | Total | | In cash | In shares B | In RSU B | Total | | Ana Botín | 701 | 1,893 | 210 | 2,804 | | 1,166 | 956 | 210 | 2,332 | | Héctor Grisi | 484 | 1,277 | 176 | 1,938 | | 806 | 629 | 176 | 1,611 | | Total | 1,185 | 3,170 | 386 | 4,742 | | 1,972 | 1,585 | 386 | 3,943 | A. The number of shares in the table correspond to a total of 309 thousand shares of Banco Santander and 6 thousand RSU of PagoNxt. B. The number of shares in the table correspond to a total of 346 thousand shares and 7 thousand RSU of PagoNxt in 2024. Reconciliation of the ‘Immediately payable and deferred (not linked to long-term objectives) variable remuneration’ table and the data disclosed in sections [C.1.a) i) and ii) of 'Statistical](#i23c41cc4ed394f98b57e3c9ecb0cdcdc_687) [information on corporate governance required by the CNMV'](#i23c41cc4ed394f98b57e3c9ecb0cdcdc_687). • The amounts of 3,004 thousand euros and 2,076 thousand euros for Ana Botín and Héctor Grisi, respectively, shown in the 'In cash' column are variable cash remuneration accrued for 2025 period and not subject to multi-year metrics. Thus, 20% is payable immediately, with a further 5% payable in each of the following two years. Nonetheless, the amounts of 3,092 thousand euros and 2,134 thousand euros, for Ana Botín and Héctor Grisi, respectively, included in table C.1.a) i) of the statistical information (column 'Short-term variable remuneration'), are the cash amounts received according to the CNMV's consolidation criterion. This means that: • the immediately payable portion, which is consolidated, matches up; and • the remaining portion (two deferred amounts) relates to the payment of the first deferred tranche of variable remuneration vested in 2024 and the second deferred tranche of variable remuneration vested in 2023. • The amounts of 2,804 thousand euros and 1,908 thousand euros for Ana Botín and Héctor Grisi, respectively, shown in the 'In shares' column are variable remuneration in shares accrued for 2025 period and not subject to multi-year metrics. Thus, 20% is payable immediately, with a further 5% payable in each of the following two years. The amounts of 2,003, 1,021 and 1,174 thousand euros for Ana Botín and 1,384, 672 and 763 thousand euros for Héctor Grisi shown in the ‘Gross profit from shares handed over or consolidated financial instruments’ column of tables C.1.a) ii) of the statistical information, follow the CNMV's consolidation criterion. This means that: • as with cash remuneration, the immediate portion matches up, as it is consolidated; • the first and second deferred tranches of variable remuneration vested in 2024 and 2023, respectively, for each executive director are included; and • the number of shares originally granted for the deferred 2023 and 2024 deferred tranches has been multiplied by the share price used for 2025 variable remuneration (EUR 10.261), which, as Santander’s share price continues to rise, results in a virtual increase (for public disclosure purposes only) in executive remuneration (see further explanation in section [C.2.](#i4c29512d430841e2a4d4b1ad0ef352aa_17262) [of 'Statistical information on corporate governance required](#i4c29512d430841e2a4d4b1ad0ef352aa_17262) [by the CNMV](#i4c29512d430841e2a4d4b1ad0ef352aa_17262)). • The amounts of 200 thousand euros and 168 thousand euros for Ana Botín and Héctor Grisi, respectively, shown in the 'In RSU' column are variable remuneration accrued in PagoNxt RSU. The amounts shown in the ‘Gross profit from shares handed over or consolidated financial instruments' column of tables C.1.a) ii) of the statistical information are remuneration in RSU that does not meet the CNMV consolidation criteria as the objectives or conditions set under the plan are yet to be achieved and, therefore, the directors do not hold an unconditional right to receive this variable remuneration. Thus, the statistical information tables only show the balance of financial instruments as at 1 January 2025 and at 31 December 2025 for information purposes. Reconciliation of the ‘Deferred variable remuneration linked to long-term objectives (fair value)’ table and the data disclosed in sections [C.1.a) i) and ii) of 'Statistical information on corporate](#i23c41cc4ed394f98b57e3c9ecb0cdcdc_687) [governance required by the CNMV'](#i23c41cc4ed394f98b57e3c9ecb0cdcdc_687). • The amounts of 701 thousand euros and 484 thousand euros for Ana Botín and Héctor Grisi, respectively, shown in the ‘In cash’ column are variable cash remuneration accrued for 2025 period and subject to multi-year metrics (under a fair value achievement assumption of 70%). Thus, this remuneration is payable at a rate of 3.33% per year on the third, fourth and fifth anniversaries of the 2025 incentive being awarded. Nonetheless, the amount of 1,172 thousand euros for Ana Botín included in table C.1.a) i) of the statistical information (column 'Long-term variable remuneration') relates to cash amounts received according to the CNMV's consolidation criterion. This means that: • the three deferred tranches correspond to the payment of variable remuneration vested in 2022, 2021 and 2020, for Ana Botín; • the multi-year targets to which these deferred tranches were linked have already been assessed: 115.2% for 2022; 91.6% for 2021; and 83.3% for 2020; and Annual report 2025337 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | • in the case of Héctor Grisi, no amounts are included in the table as these deferred tranches are yet to consolidate during his tenure as CEO of Banco Santander (beginning 1 January 2023). • The amounts of 1,893 thousand euros and 1,277 thousand euros for Ana Botín and Héctor Grisi, respectively, shown in the 'In shares' column are variable remuneration in shares accrued for 2025 period and subject to multi-year metrics (at a fair value of 70%). Thus, this remuneration is payable at a rate of 10% per year on the third, fourth and fifth anniversaries of the 2025 incentive being awarded. The amounts of 1,387, 737, 1,670 and 319 thousand euros for Ana Botín shown in the ‘Gross profit from shares handed over or consolidated financial instruments’ column of tables C.1.a) ii) of the statistical information follow the CNMV's consolidation criterion. This means that: • The deferred tranches correspond to the payment of variable remuneration (paid in shares or share options) vested in 2022, 2021 and 2020. • The multi-year targets to which these deferred tranches were linked have already been calculated: 83.3% for 2020, 91.6% for 2021; and 115.2% for 2022 (the latter approved in 3 February 2026 board of directors meeting). For more details, see section [K](#i4d2b0c05631240c2b6c2db58efb5b586_142229)). • The number of shares originally granted for the deferred 2022, 2021 and 2020 tranches has been multiplied by the share price used for 2025 variable remuneration (10.261 euros), which results in a virtual increase in remuneration at those moments (only for public disclosures purposes). • As with cash remuneration, no amounts are included for Héctor Grisi as these deferred tranches are yet to consolidate during his tenure as CEO of Banco Santander (beginning 1 January 2023). • Regarding the variable remuneration accrued in PagoNxt RSU, the statistical information tables only show the balance of financial instruments as at 1 January 2025 and at 31 December 2025 for information purposes — they are yet to consolidate, as explained above. Fair value has been determined on the grant date based on the valuation of an independent expert, Willis Towers Watson. Based on the design of the plan for 2025 and success levels of similar plans at peer entities, the fair value was considered to be 70% of total value linked to long-term objectives assigned. The maximum amount of shares to be delivered under the plan is within the maximum amount of the award to be delivered in shares (EUR 11.5 million) approved at the 2025 AGM for executive directors. At its meeting on 25 November 2025 and pursuant to the powers granted by shareholders at the 2025 AGM, the board agreed to amend the calculation period used to determine the number of shares to be delivered from 50 to 30 trading sessions (under no circumstances may the number of shares exceed the maximum approved at the AGM), as the board considered that this better reflects market practice and enables us to offset share price volatility. Thus, the number of shares to be delivered under the 2025 policy has been calculated with the weighted average daily volume of weighted average listing prices of Banco Santander shares in the 30 trading sessions prior to the Friday (not inclusive) before 3 February 2026 (the date on which the board approved the 2025 bonus for executive directors), which was EUR 10.261 per share. According to an independent experts' valuation, the price per PagoNxt RSU equals EUR 61.07. Annual report 2025338 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### iv) Multi-year targets linked to the payment of deferred amounts in2029,2030 #### and2031 The multi-year targets linked to the payment of the deferred amounts payable in 2029, 2030 and 2031 are: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | Metrics | Weight | | Target and compliance scales (metrics ratios) | | A | Relative Total Shareholder Return (TSR)A in 2025-2027 within a peer group | 50% | | If ranking Santander equal percentile 100, then metric ratio is 1.5 If ranking Santander between percentiles 75 and 100 (not inclusive), then metric ratio is 1 – 1.5 B If ranking Santander between percentiles 50 and 75 (not inclusive), then metric ratio is 0.5 – 1B If ranking Santander below percentile 50, then metric ratio is 0 | | B | Banco Santander’s consolidated RoTE target in 2027 | 30% | | If RoTE in 2027 is ≥ 18.5%, then metric ratio is 1.5 If RoTE in 2027 is ≥ 17% but <18.5%, then metric ratio is 0 – 1.5C If RoTe in 2027 is < 17%, then metric is 0 | | C | Four sustainability (environmental, social and governance) metrics with the following weighting: 2/10 x Coefficient 1 + 2/10 x Coefficient 2 + 1/10 x Coefficient 3 +5/10 x Coefficient 4 | 20% | 1) | If % women in executive positions in 2027 is ≥ 39.5%, then metric ratio is 1.25 If % women in executive positions in 2027 is ≥ 39.2% but <39.5%, then metric ratio is 1 – 1.25 D If % women in executive positions in 2027 is ≥ 38.4% but <39.2%, then metric ratio is 0 – 1D If % women in executive positions in 2027 is < 38.4%, then metric ratio is 0 | | 2) | If number of financially included people E between 2025 and 2027 (in million) is ≥ 6, then metric ratio is 1.25 If number of financially included people E between 2025 and 2027 (in million) is ≥ 4.5 but <6, then metric ratio is 1 – 1.25 D If number of financially included people E between 2025 and 2027 (in million) is ≥ 3.5 but <4.5, then metric ratio is 0 – 1 D If number of financially included people E between 2025 and 2027 (in million) is < 3.5, then metric ratio is 0 | | 3) | If socially responsible investment F in 2027 is ≥ 21%, then metric ratio is 1.25 If socially responsible investment F in 2027 is ≥ 19% but < 21%, then metric ratio is 1 –1.25 D If socially responsible investment F in 2027 is ≥ 15% but < 19%, then metric ratio is 0 –1D If socially responsible investment F in 2027 is < 15%, then metric ratio is 0 | | 4) | If finance raised and facilitated G (in EUR billions) between 2025 and 2027 is ≥ 220, then metric ratio is 1.25 If finance raised and facilitated G (in EUR billions) between 2025 and 2027 is ≥ 165 but < 220, then metric ratio is 1 –1.25D If finance raised and facilitated G (in EUR billions) between 2025 and 2027 is ≥ 120 but < 165, then metric ratio is 0 –1 D If finance raised and facilitatedG (in EUR billions) between 2025 and 2027 is < 120, then metric ratio is 0 | A. TSR refers to the difference (%) between the final and initial values of capital invested in ordinary shares of Banco Santander. The final value is calculated based on the dividends or other similar concepts (such as the Santander Scrip Dividend programme) shareholders receive for this investment during the corresponding period -as if they had invested in more shares of the same type at the first date on which the dividend or similar concept was payable to shareholders- and the weighted average share price at that date. To calculate TSR, the weighted average daily volumes of the weighted average listing prices for the fifteen trading sessions prior to 1 January 2025 (exclusive) is considered (to calculate the initial value) and the fifteen trading sessions prior to 1 January 2028 (exclusive) (to calculate the final value). The peer group consists of BBVA, BNP Paribas, Citi, Crédit Agricole, HSBC, ING, Itaú, Scotia Bank and Unicredit. B. Proportional increase in the TSR ratio based on the number of positions moved up in the ranking. C. Straight-line increase in the RoTE ratio based on the percentage of specific RoTE in 2027 within this bracket of the scale. D. Increase of the coefficient is proportional to its position on this line of the scale. E. Financial inclusion: the banking proposals or tailored finance refer to the number of people unbanked, underbanked, in financial distress or with difficulty to access credit to whom we provide tailored access and finance solutions, aiming to meet local financial inclusion needs in a recurrent, comprehensive, affordable and effective way. F. Assets under management that meet the criteria of Santander’s Sustainable Finance and Investment Classification System as a percentage of total assets under management. G. Grupo Santander's contribution to our customers’ transition: CIB green finance raised and facilitated (target), Retail & Commercial banking green finance and sustainable linked-loans, and Digital Consumer Bank green finance. To achieve beyond 100% of this goal, it is necessary to progress on Banco Santander transition plan. To determine the annual amount of the deferred portion linked to objectives corresponding to each executive director in 2029, 2030 and 2031, the following formula shall be applied to each of these payments ('final annuity') without prejudice to any adjustment deriving from the malus clauses: Final annuity = Amt. x (5/10 x A + 3/10 x B + 2/10 x C) where: • 'Amt.' is one third of the variable remuneration amount deferred conditional on performance (i.e. Amt. will be 13.33% of the total variable pay set in early 2026 ). • 'A' is the TSR ratio calculated as the scale in the table above, according to the relative performance of Banco Santander’s TSR within its peer group in 2025- 2027. • 'B' is the RoTE coefficient according to the scale in the table above, based on RoTE at year-end 2027. • 'C' is the coefficient resulting from the sum of weighted coefficients for each of the four sustainability targets for 2027 described above. • In any event, if the result of (5/10 x A + 3/10 x B +2/10 x C) is greater than 1.25, the multiplier will be 1.25. ![]() 4 When the beneficiary’s relationship with Banco Santander or another Group entity terminates because of retirement, early retirement or pre-retirement; a dismissal ruled by the courts to be wrongful; unilateral withdrawal for good cause by an employee (which includes the situations set forth in article 10.3 of Royal Decree 1382/1985, of 1 August, governing the special relationship of senior management, for the persons subject to these rules); permanent disability or death; mandatory redundancy; or because an employer other than Banco Santander ceases to belong to Grupo Santander, the right to receive shares and deferred amounts in cash and any amounts of the deferred amounts in cash adjusted for inflation will remain under the same conditions in force as if none of such circumstances had occurred. In the case of death, the right will pass to the beneficiary’s heirs. In cases of justified temporary leave due to temporary disability, suspension of contract due to maternity or paternity leave, or leave to care for children or a relative, there will be no change in the beneficiary’s rights. If the beneficiary goes to another Group company (even through international assignment and/or expatriation), these rights will likewise not change. If the relationship terminates by mutual agreement or because the beneficiary obtains a leave not mentioned above, the terms of the termination or temporary leave agreement will apply. None of the above circumstances shall give the right to receive the deferred amount in advance. If the beneficiary or the successors thereof maintain the right to receive the deferred remuneration in shares and cash and, where applicable, the amounts arising from the adjustment for inflation of the deferred amounts in cash, it shall be delivered within the periods and under the terms provided in the rules for the plans. Annual report 2025339 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### v) Malus and clawback Deferred amounts (whether or not contingent on multi-year targets) will be earned if the beneficiary continues to work with the Group 4 at December 31, and none of the circumstances triggering malus clauses arise before each payment, according to the section on malus and clawback clauses in the remuneration policy. Similarly, Banco Santander can clawback any paid variable amounts in the scenarios and for the period dictated by the terms and conditions in the said policy. Variable remuneration for 2025 can be clawed back until the beginning of 2032. Malus and clawback clauses are triggered by poor financial performance of Banco Santander, a division or area, or exposures from staff as a result of an executive(s)’s management of, at least, one of these factors: | | | | --- | --- | | | | | Category | Factors | | Risk | Significant failures in risk management by Banco Santander, or by a business or risk control unit. | | Capital | An increase in capital requirements at Banco Santander or one of its business units not planned at the time that exposure was generated. | | Regulation and internal codes | Regulatory penalties or legal convictions for events that might be attributable to the unit or staff responsible for them. In addition, failure to comply with Banco Santander’s internal codes of conduct. | | Conduct | Improper conduct, whether individual or collective. Negative effects deriving from the marketing of unsuitable products and the liability of persons or bodies making such decisions will be considered especially significant. | In addition to the policy on malus and clawback clauses of our remuneration policy, the addendum to our remuneration policy entitled 'Financial Statement Restatement Compensation' regulates the recoupment of compensation received by the executive directors of Banco Santander, S.A., and senior management, in the event of a financial restatement (according to the regulation) resulting from material noncompliance with financial reporting requirements under US federal securities laws. The application of malus or clawback clauses for executive directors shall be determined by the board of directors, at the proposal of the remuneration committee, and cannot be proposed once the regulatory retention period for the final payment in shares under the plan has elapsed in early 2032. Therefore, the board determines the specific deferred incentive amount to be paid as well as any amount that could be subject to clawback, upon on the remuneration committee’s recommendation and depending on the level of compliance with the conditions for applying malus clauses. C. Main features of the benefit plans Executive directors participate in the defined contribution pension scheme created in 2012, which covers contingencies due to retirement, disability and death. According to the 2012 system, contracts for Ana Botín and other senior managers with defined benefit pension obligations were transformed into a defined contribution system. The new system gives executive directors the right to receive benefits upon retirement, even if they are not active at Banco Santander at the time, based on contributions to the system. It also replaced their previous right to receive a pension supplement in the event of retirement. The initial contribution for Ana Botín in the new defined contribution pension scheme corresponded to the market value of the assets for which the provisions for due obligations were recognized when the previous pension commitments had been transferred to the new pension scheme. Every year since 2013, Banco Santander has been contributing to the pension scheme for executive directors and other members of the executive team in proportion to their pensionable bases until their departure from the Group, retirement, death or disability. In general terms, the pensionable base for executive directors is the sum of their fixed remuneration plus 30% of the average of their last three variable remuneration amounts. Contributions will be 22% of pensionable bases in all cases. This means complying in both cases with Circular 2/2016 of the Bank of Spain, standard 41, on pension benefits, by which a part of not less than 15% of the total contribution must be based on variable components. Pursuant to remuneration regulations, contributions calculated on the basis of variable remuneration are subject to the discretionary pension benefits scheme. Therefore, under the policy, malus and clawback clauses can be enforced on them in place at any given time and during the same period in which variable remuneration is deferred. Furthermore, these contributions must be invested in Banco Santander shares for five years from the date of the executive director's retirement, or from the date on which the executive directors leave the group. Once that period has elapsed, the amount invested in shares will be paid to them or their beneficiaries if some contingency covered by the pension scheme was happened or will be added to the remainder of their cumulative balance until their retirement age when the total amount will be paid. 5 This share price corresponds to the share price as of closing of stock markets on 31 December 2025. Annual report 2025340 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | The benefit plan is outsourced to Santander Seguros y Reaseguros, Compañía Aseguradora, S.A. The economic rights of the directors previously mentioned belong to them even if they are not active at Banco Santander at the time of their retirement, death or disability. Their contracts do not stipulate any severance payment outside the extent of the law for termination of contract. The provisions recognised in 2025 for retirement pensions amounted to EUR 2,461 thousand (EUR 2,445 thousand in 2024), as broken down below. | | | | | --- | --- | --- | | | | | | Provisions recognised during the year | | | | EUR thousand | 2025 | 2024 | | Ana Botín | 1,341 | 1,339 | | Héctor Grisi | 1,120 | 1,105 | | Total | 2,461 | 2,445 | The amounts corresponding to each director as of 31 December 2025 and 2024 in the pension scheme are: | | | | | --- | --- | --- | | | | | | Balance of the pension fund as at 31 December | | | | EUR thousand | 2025 | 2024 | | Ana Botín | 65,027 | 54,731 | | Héctor Grisi | 2,033 | 1,299 | | José Antonio Álvarez | 23,178 | 20,326 | | Total | 90,238 | 76,356 | D. Other remuneration Grupo Santander also takes out insurance policies for life, health and other contingencies for its executive directors. This other remuneration component includes the fixed supplement approved for Ana Botín and José Antonio Álvarez to replace the supplementary benefits from the pension scheme eliminated in 2018 (both of them reached the established age of 65 during 2025, and therefore the related supplement has expired), in addition to the cost for insuring death or disability until they retire. Directors are covered under the Group’s civil liability insurance policy. Note ['5. Remuneration and other benefits paid to the Bank’s](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1009) [directors and senior managers'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1009) to the Group’s consolidated financial statements describes other benefits received by executive directors in detail. E. Shareholdings In 2016, on the remuneration committee’s recommendation, the board of directors approved a shareholding policy to better align executive directors with shareholders’ long-term interests. According to this policy executive directors have five years to demonstrate that their personal assets include shares in Banco Santander that amount (net of taxes) to twice their gross annual salary on that date. The following table show the ratio, with a share price of EUR 10.07 5: | | | | | | --- | --- | --- | --- | | | | | | | Shareholdings | | | | | | 2025 | | | | | Gross annual salary (thousand) | Number of shares (thousand) | Number of times | | Ana Botín | 3,435 | 33,847 | 99.2 | | Héctor Grisi | 3,150 | 2,546 | 8.1 | Likewise, in addition to the regulatory obligation for executive directors not to sell the shares they receive as remuneration for a year from their award, which is included in the shareholding policy, and will apply to all cases, this policy has also been updated in 2020 to include the obligation for executive directors not to sell the shares they receive as remuneration for a period of three years from their award date, unless the executive director already holds Banco Santander shares for an amount equivalent to twice his/her net annual salary. F. Remuneration of board members as #### representatives of Banco Santander The executive committee resolved that the remuneration accrued by executive directors who represent Banco Santander on boards of companies where it owns equity and were appointed after 18 March 2002 will accrue to the Group. No executive director received remuneration for this type of representation in 2025. The following table includes the remuneration received by non- executive directors on a personal basis in other Group entities: | | | | | --- | --- | --- | | | | | | Director | Position | Remuneration | | Homaira Akbari | Member of the board of Santander Consumer USA Holdings, Inc. | USD 100 thousand (EUR 85 thousand) | | Member of the board of PagoNxt, S.L. | EUR 200 thousand | | Henrique de Castro | Member of the board of PagoNxt, S.L. | EUR 200 thousand | | Member of the nomination committee of PagoNxt, S.L. | EUR 15 thousand | | José Antonio Álvarez | Member of the board of PagoNxt, S.L. | EUR 200 thousand | | Pamela Walkden | Member of the board of Santander UK, plc and Santander UK Group Holdings Limited | GBP 100 thousand (EUR 115 thousand) | | Belén Romana | Member of the board of Santander Insurance, S.L. | EUR 157 thousand | | Total | | EUR 972 thousand | Likewise, Luis Isasi received EUR 1,000 thousand for his role as non-executive Chair of the Santander España business unit and for attending its board and committee meetings (amount included in the chart below as 'other remuneration' as it is paid by Banco Santander, S.A.). And finally, José Antonio Álvarez received a fixed remuneration of EUR 1,750 thousand as strategic adviser of Grupo Santander, as well as the life and health insurance contributions and part of the supplement for having waived the death and disability policy disclosed in the table in section G below. Annual report 2025341 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | G. Individual remuneration of directors for all #### items in2025 Below is a breakdown of each director’s short-term salary (payable immediately) and deferred remuneration not based on long-term performance for 2025 and 2024. Statistical information on remuneration required by the CNMV ([9.5](#i6ecb2a0d58d04b53bfadfa2a833efaa7_634)) and [Note 5](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1009) to the Group’s consolidated financial statements contains disclosures on shares delivered in 2025 under the deferred remuneration schemes of previous years where conditions for their delivery were met in the related years. | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Individual breakdown by compensation components | | | | | | | | | | | | | | | EUR thousand | | | | | | | | | | | | | Directors | 2025 | | | | | | | | | | | 2024 | | Bylaw-stipulated emoluments | | | Salary and bonus of executive directors | | | | | | Total | | Total | | Board and board committees annual allotment | Board and committee attendance fees | | Fixed Salary | Immediate payment bonus (50% in instruments) | Deferred payment bonus (50% in instruments) | Total | Pension Contribution | Other remuneration F | | | Ana Botín | 305 | 44 | | 3,435 | 4,006 | 2,003 | 9,444 | 1,341 | 843 | 11,977 | | 12,127 | | Héctor Grisi | 305 | 44 | | 3,150 | 2,768 | 1,384 | 7,302 | 1,120 | 718 | 9,489 | | 9,137 | | José Antonio Álvarez | 380 | 67 | | — | — | — | — | — | 2,440 | 2,887 | | 3,698 | | Glenn Hutchins | 622 | 78 | | — | — | — | — | — | — | 700 | | 700 | | Homaira Akbari | 203 | 81 | | — | — | — | — | — | — | 284 | | 285 | | Javier BotínA | 101 | 36 | | — | — | — | — | — | — | 137 | | 144 | | Sol Daurella | 239 | 75 | | — | — | — | — | — | — | 314 | | 292 | | Henrique de Castro | 203 | 80 | | — | — | — | — | — | — | 283 | | 300 | | Gina Díez | 159 | 63 | | — | — | — | — | — | — | 222 | | 225 | | Luis Isasi | 349 | 74 | | — | — | — | — | — | 1,000 | 1,423 | | 1,440 | | Belén Romana | 474 | 107 | | — | — | — | — | — | — | 581 | | 599 | | Pamela Walkden | 290 | 93 | | — | — | — | — | — | — | 383 | | 381 | | Germán de la Fuente | 262 | 83 | | — | — | — | — | — | — | 344 | | 338 | | Carlos Barrabés B | 187 | 71 | | — | — | — | — | — | — | 259 | | 128 | | Antonio WeissC | 130 | 50 | | — | — | — | — | — | — | 180 | | 72 | | Bruce Carnegie-Brown D | — | — | | — | — | — | — | — | — | — | | 78 | | Ramiro MatoE | — | — | | — | — | — | — | — | — | — | | 271 | | Total 2025 | 4,209 | 1,045 | | 6,585 | 6,774 | 3,387 | 16,746 | 2,461 | 5,001 | 29,462 | | — | | Total 2024 | 4,115 | 1,240 | | 6,585 | 6,260 | 3,756 | 16,601 | 2,444 | 5,815 | — | | 30,214 | A. All amounts received were reimbursed to Fundación Botín. B. Director and member of the NC, RBSCC and ITC since 27 June 2024. C. Member of board of directors since 27 June 2024 D. Stepped down as director on 27 June 2024. E. Stepped down as director on 22 March 2024. F. Other remuneration includes for Luis Isasi EUR 1,000 thousand for his role as non-executive Chair of the Santander España business unit and for attending its board and committee meetings. For José Antonio Álvarez, this amount includes remuneration as strategic advisor of Grupo Santander, life and health insurance contributions (EUR 678 thousand) and part of the former supplement for having waived the death and disability policy (EUR 12 thousand). The total amounts that the directors vested for performing supervisory and collective decision-making duties at Banco Santander, in addition to those that the Group’s executive directors, Ana Botín and Héctor Grisi, vested, amounted to 29,462 thousand euros in 2025. This is a different amount to the 41,315 thousand euros reported in section [C.1.c) of 'Statistical information on](#i4c29512d430841e2a4d4b1ad0ef352aa_1758) [corporate governance required by the CNMV](#i4c29512d430841e2a4d4b1ad0ef352aa_1758)’ for two reasons: • The difference in the criterion used to prepare the information relating to executive directors’ variable remuneration, as explained above. • The additional inclusion in the statistical information table of remuneration data for non-executive directors in other Group companies (EUR 972 thousand). The following table provides each executive director’s salary contingent on multi-year targets. It is only paid if they remain active in the group, malus clauses do not apply and set multi-year targets are achieved (as depending on their achievement, the amounts will be increased (limited to 125%), reduced, or even be zero, if the related minimum thresholds are not achieved): Annual report 2025342 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | Total deferred variable remuneration linked to long-term objectives (fair value) | | | | | EUR thousandA | | | | 2025 | 2024 | | Ana Botín | 2,804 | 2,332 | | Héctor Grisi | 1,938 | 1,611 | | Total | 4,742 | 3,943 | A. Fair value of the maximum amount receivable over a total of 3 years (2029, 2030 and 2031), which was estimated when the plan was granted, based on several scenarios relating to variables in the plan during the measurement periods. The face value of the three aforementioned deferred amounts is EUR 6,774 thousand for 2025 (EUR 4,006 thousand for Ana Botín and EUR 2,768 thousand for Héctor Grisi). H. Ratio of variable to fixed pay components in 2025 At the 2025 AGM, shareholders approved a maximum ratio of 200% of variable to fixed components in executive directors’ pay. The ratio of variable components to fixed components for each executive director’s total pay in 2025 is 197% for Ana Botín and 150% for Hector Grisi (175% and 147% respectively for 2024). For these purposes: • Variable components include all items of this nature, such as any contributions to the pension scheme calculated on directors’ variable pay. • Fixed components consist of the other items each director receives for executive duties, including contributions to pension schemes calculated on the basis of fixed remuneration and other benefits, as well as all Bylaw-stipulated emoluments that the director is entitled to receive in his or her capacity as such. I. How we include sustainability metrics in #### 2025 variable incentive scheme Banco Santander's current remuneration policy is designed to align executive pay with our strategic goals, including long-term sustainability. The policy incorporates mechanisms that link variable remuneration to the achievement of financial, sustainability, and value creation objectives. These objectives are specific, measurable, and aligned with the bank's interests, encompassing environmental, social, and governance (sustainability) factors. Sustainability metrics are included in the two different incentive schemes, the short-term incentive and the long-term incentive. Both structures are in place to reward performance and promote a balance between immediate results and sustainable growth over time. 1. Short-term incentive (measured by the Bonus pool result): • Variable pay calculated against annual quantitative metrics and a qualitative assessment based on objective factors, while also considering individual performance. We consider sustainability accomplishments in the qualitative assessment, with a weight of +/- 5%. • Our top 248 Groups' executives (including the Executive Chair and CEO), as well as employees of the global Corporate Centre and global corporate centres of our subsidiaries, are subject to this general Bonus pool framework and their respective local adaptations. • The proposed parameters for sustainability performance reviews aim to reward progress both in key metrics and in embedding sustainability in management. For the 2025 award, the sustainability component of the qualitative assessment considered the following sustainability-related accomplishments vs. the targets budgeted for the year: progress with inclusive culture; financial inclusion and financial health and community support; sustainable business volume and supporting transition; and governance and data. 2. Long-term incentive: • A portion of variable compensation (40% for executive directors), which is deferred and earned based on the achievement of pre- determined multi-year goals, including sustainability metrics (for the 2025 award, 20% of total multi-year goals). These metrics are progress with inclusive culture, financial inclusion, socially responsible investment and supporting our customers' transition through sustainable finance, and the progress on transition plan (for more details, please see section 6.3.B [iv) 'Multi-year targets](#i4d2b0c05631240c2b6c2db58efb5b586_156737) [linked to the payment of deferred amounts in 2029, 2030 and](#i4d2b0c05631240c2b6c2db58efb5b586_156737) [2031 '](#i4d2b0c05631240c2b6c2db58efb5b586_156737). • In 2025, a total of 38 Groups' executives (the highest-ranking positions within the organisation) have their long-term incentive linked to these metrics, including the Executive Chair and CEO. J. Comparative analysis of directors' remuneration, company performance and average remuneration of employees This chart summarizes directors’ compensation (short-term remuneration, deferred variable remuneration and/or deferred variable remuneration linked to multi-year targets included, excluding pension contributions) for executive duties in relation to underlying attributable profit as evidenced below. The weight of executive directors’ remuneration relative to underlying attributable profit continues to decline since 2013. | | | --- | | | | Ratio of executive directors’ total remuneration to underlying attributable profit | ![RetribucionConsejerosENG.jpg]() Annual report 2025343 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | The following chart shows the comparative analysis between the directors' remuneration, the company performance (underlying profit attributable to the Group, audited profit before taxes and ordinary ROTE) and the average remuneration of Santander employees (other than directors and in a full time equivalent basis) in the last 5 years: | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | Directors' remuneration1 (EUR thousand) | | | | | | | | | | | | 2025 | % var. 25/24 | 2024 | % var. 24/23 | 2023 | % var. 23/22 | 2022 | % var. 22/21 | 2021 | | • Executive Directors | | | | | | | | | | | Ana Botín | 11,977 | (1)% | 12,127 | 5% | 11,544 | 5% | 11,001 | (4%) | 11,435 | | Héctor Grisi | 9,489 | 4% | 9,137 | 11% | 8,257 | — | — | — | — | | • Non-Executive Directors2 | | | | | | | | | | | José Antonio Álvarez | 2,887 | (22%) | 3,698 | 4% | 3,553 | (61%) | 9,086 | (1%) | 9,160 | | Glenn Hutchins | 700 | —% | 700 | 88% | 372 | — | 10 | — | — | | Homaira Akbari | 284 | —% | 285 | 8% | 265 | 9% | 244 | (2%) | 248 | | Javier BotínA | 137 | (5%) | 144 | 5% | 137 | 6% | 129 | — | 129 | | Sol Daurella | 314 | 7% | 292 | 17% | 249 | 8% | 230 | (4%) | 239 | | Henrique de Castro | 283 | (6%) | 300 | 6% | 284 | 9% | 261 | (2%) | 267 | | Gina Díez | 222 | (1%) | 225 | 7% | 211 | 23% | 172 | 32% | 130 | | Luis IsasiB | 1,423 | (1%) | 1,440 | 2% | 1,417 | — | 1,412 | — | 1,406 | | Belén Romana | 581 | (3%) | 599 | 5% | 572 | 4% | 549 | 3% | 533 | | Pamela Walkden | 383 | 1% | 381 | 12% | 341 | 6% | 323 | 7% | 303 | | Germán de la Fuente | 344 | 2% | 338 | 25% | 271 | — | 137 | — | — | | Carlos Barrabés C | 259 | 102% | 128 | — | — | — | — | — | — | | Antonio WeissD | 180 | 150% | 72 | — | — | — | — | — | — | | Bruce Carnegie-Brown E | — | — | 78 | (86%) | 576 | (18)% | 700 | — | 700 | | Ramiro MatoF | — | — | 271 | (48%) | 518 | 4% | 500 | — | 499 | | Company’s performance | | | | | | | | | | | Underlying profit attributable to the Group (EUR mn) | 14,101 | 12% | 12,574 | 14% | 11,076 | 15% | 9,605 | 11% | 8,654 | | Consolidated results of the Group 3 (EUR mn) | 20,867 | 10% | 19,027 | 16% | 16,459 | 8% | 15,250 | 5% | 14,547 | | Ordinary RoTE | 17.07% | 5% | 16.27% | 8% | 15.06% | 13% | 13.37% | 5% | 12.73% | | Employees' average remuneration4 (EUR thousand) | 62 | 1% | 61 | 5% | 58 | 3% | 56 | 1% | 56 | | Employees' average remuneration in Spain 5 (EUR thousand) | 77 | 3% | 75 | 3% | 73 | 6% | 68 | 10% | 62 | | Annual increase of employees' average remuneration in Spain on a like for like basis | — | 6% | — | — | — | — | — | — | — | 1. Deferred variable remuneration linked to long-term objectives is not included. 2. Non-executive directors' remuneration fluctuations are caused by joining or leaving the board of directors and the difference in the amount of meetings they assist during the year. Hence there is no correlation between their remuneration and the company performance. 3.Group operating profit/(loss) before tax. 4. Group's employee average remuneration includes all concepts, including other remuneration. Normally the increases or decreases in remuneration are greater for the executive directors, depending on the results of the entity, because the percentage of variable remuneration over fixed remuneration in an average employee is lower than that of the executive directors. Variable remuneration data accrued in the current year, both for employees and executive directors. Evolutive data also impacted by exchange rate performance in the group's geographies. Full time equivalent data considered. 5.Total employees in Spain geography. Fixed remuneration + effective bonus received in the year. Not all concepts are included. Not impacted by exchange rates. A. All amounts received were reimbursed to Fundación Botín. B. Includes EUR 1,000 thousand for his role as non-executive Chair of the Santander España business unit and for attending its board and committee meetings. C. Director and member of the NC, RBSCC and ITC since 27 June 2024. D. Member of board of directors since 27 June 2024. E. Stepped down as director on 22 March 2024. F. Stepped down as director on 27 June 2024. Annual report 2025344 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | K. Performance of the long-term metrics under the 2022 plan (2022-2024) In 2025, the board of directors, at the remuneration committee’s recommendation, approved the level of performance of the long-term metrics for the seventh cycle of the deferred multi-year objectives variable remuneration plan (2022). The table below details each metric and its result at the close of period. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | Metric | Target | | Result | Coefficient | Weight | Weighted coefficient | | RoTE in 2024 (%) | ≥15% - Coefficient 1.5 ≥12% but <15% - Coefficient 0 - 1.5 <12% - Coefficient 0 | | 16.3% | 150% | 40% | 60.0% | | Relative Total Shareholder Return in 2022-2024 within a peer group | Percentile 100 - Coefficient 1.5 Percentile 75 - 100 - Coefficient 1 - 1.5 Percentile 40 - 75 - Coefficient 0.5 - 1 Below percentile 40 - Coefficient 0 | | Percentile 67 | 83% | 40% | 33.2% | | Sustainability metrics | a) % women in senior leadership positions in 2024 | ≥ 30.5% - Coef. 1.25 ≥ 30% but < 30.5% - Coef. 1 – 1.25 ≥ 28% but < 30% - Coef. 0 - 1 < 28% - Coef. 0 | 31.2% | 125% | 1/5 | 25% | | b) Number of financially empowered people between 2019 and 2024 (mn) | ≥ 14 - Coef. 1.25 ≥ 13 but < 14 - Coef. 1 – 1.25 ≥ 9 but < 13 - Coef. 0 - 1 < 9 - Coef. 0 | 16.1 | 125% | 1/5 | 25% | | c) Green finance raised and facilitated target between 2019 and 2024 (bn) | ≥ 170 - Coef. 1.25 ≥ 160 but < 170 - Coef. 1 – 1.25 ≥ 120 but < 160 - Coef. 0 - 1 < 120 - Coef. 0 | 177 | 125% | 1/5 | 25% | | d) Number of sectors with decarbonisation targets in 2024 | ≥ 11 - Coef. 1.25 =10 - Coef. 1 ≥ 0 but < 10 - Coef. 0 - 1 | 5 | 50% | 1/5 | 10% | | e) % of emission intensity reduction of our power generation portfolio in 2024 (versus 2019) | ≥ 18.75% - Coef. 1.25 ≥ 15% but < 18.75% - Coef. 1 – 1.25 ≥ 0% but < 15% - Coef. 0 - 1 | 48% | 125% | 1/5 | 25% | | Total a + b + c + d + e | | | | | 110% | | Sustainability | | | 110% | 20% | 22% | | Total level of achievement 2022 Plan | | | | | | 115.2% | Annual report 2025345 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | L. Summary of link between risk, performance and remuneration Banco Santander's remuneration policy and its application in 2025 have promoted sound and effective risk management, at the same time as supported the fulfilment of long-term business objectives. The key elements of the remuneration policy for executive directors making alignment between risk, performance and reward in 2025 were as follows: | | | | --- | --- | | | | | Key words | Aspect aligning risk, performance and remuneration | | Metrics balance | The balance of quantitative metrics and qualitative assessments, including customer, risk, capital and profitability in relation to risk, used to determine the executive directors’ variable remuneration. | | Financial thresholds | The adjustment to variable remuneration if certain financial thresholds are not reached, which may limit the variable remuneration to 50% of the previous year's amount or lead to it not being awarded at all. | | Long-term objectives | The long-term objectives linked to the last three portions of the deferred variable remuneration. These objectives are directly associated with return to shareholders relative to a peer group, RoTE and the targets linked to our sustainability agenda. | | Individual performance | The discretion of the board to consider the performance of each executive director in the award of their individual variable remuneration. | | Variable remuneration cap | 200% of fixed remuneration. | | Control functions involvement | The work undertaken by the human resources committee aided by senior managers leading Control functions in relation to the analysis of quantitative metrics information and undertaking qualitative analysis. | | Malus and clawback | Malus can be applied to unvested deferred pay and clawback can be applied to vested or paid compensation under the conditions dictated by the Group’s remuneration policy. | | Shareholding policy | We have demanding executive stock ownership requirements whereby they have the obligation to hold an amount of Santander shares of at least twice their annual salary, thus reducing the incentive for short-term risk taking. | | Payment in instruments | At least 60% of variable pay is in instruments and subject to retention or prohibition from exercise of at least one year from their delivery. | 6.4 Directors' remuneration policy for 2026 , 2027 and 2028 Remuneration policy principles and #### remuneration system A. Directors' remuneration in their capacity as such Director’s remuneration is regulated by article 58 of Banco Santander’s Bylaws and article 33 of the Rules and regulations of the board of directors. For 2026, 2027 and 2028 , no changes to the principles and composition of directors’ remuneration for supervisory and collective decision-making duties are planned with respect of those in 2025. They are described in sections [6.1 'Principles of the remuneration policy'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_565) and [6.2 'Remuneration](#i6ecb2a0d58d04b53bfadfa2a833efaa7_568) [of directors for supervisory and collective decision-making duties:](#i6ecb2a0d58d04b53bfadfa2a833efaa7_568) [policy applied in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_568). B. Executive directors' remuneration Executive directors are entitled to be paid the remuneration (e.g., salaries, incentives, bonuses, severance payments for early termination from such duties, and amounts to be paid by Banco Santander for insurance premiums or contributions to savings schemes) deemed appropriate for performing executive functions following a proposal from the remunerations committee and by resolution of the board of directors, subject to the limits set by law. Principle of equal pay for equal work and equal employment conditions for Santander executives and employees Santander applies the equal pay principle included in the Corporate remuneration policy of Grupo Santander for executive directors and employees alike, which forbids any type of differential treatment that is not exclusively based on an assessment of performance results and corporate behaviours, and promotes equal pay for men and women. Furthermore, our remuneration framework rewards Santander employees for their contribution based on such common principles as: • Meritocracy: Non-discrimination based on sex, age, culture, religion or ethnicity. • Consistency: Remuneration consistent with the level of responsibility, leadership and performance within the Group, to promote retention of key professionals and attract the best talent. • Sustainability: A remuneration framework that is sustainable in terms of associated costs, cost control, and related objectives (as described in the policy) that ensure variable remuneration is commensurate with the Group's performance, disincentivize short termism and promote long-term sustainability. The remuneration scheme for the 1,336 Corporate Identified Staff also includes deferrals of up to 60% of their variable remuneration, payment of 50% of their variable remuneration in instruments (subject to one-year retention) and malus and clawback clauses. Also, performance objectives for annual variable remuneration have included since 2020 sustainability components. From 2022, with the purpose of increasing focus on the Group's sustainability agenda and highlight this matter as a core long-term strategy, sustainability metrics are included (described in the next section) for the last deferred variable remuneration payments. Annual report 2025346 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | • Social responsibility: Employees’ pay cannot be lower than the legal minimum wage or the living wage in the country where they work. Additionally, in order to give our social responsibility prominence in remuneration, the Group’s responsible banking objectives for employee remuneration include the people financially included metric. • Performance-based pay: Variable remuneration is subject to the achievement of (i) annual objectives (set out in section 6.4.B.ii.B), which reflect customer and profitability strategy, promote proper risk management and cost-effective capital allocation, and discourage short-term management focus; and (ii) long-term objectives (see section 6.4.B.ii.B), which support a sustainable balance sheet, shareholder return, the Group’s profitability and sustainability of the Group's activities and the way they are carried out. Also, as detailed at the beginning of section [6.3 'Remuneration of](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571) [directors for executive duties'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571), Banco Santander conducts an annual comparative review of executive directors’ and top management remuneration. The analysis group in 2026 consists of BBVA, BNP Paribas, Citi, Crédit Agricole, HSBC, ING, Itaú, Scotiabank and Unicredit, based on their market capitalization, global scale, brand recognition, geographical diversification, business model and regulatory framework. The incorporation of US and Brazilian banks is justified by the strong presence of Banco Santander in those countries, where Santander is listed (the New York Stock Exchange and Brazilian Stock Exchange of São Paulo). Our findings show that Banco Santander does not apply any remuneration elements to its executive directors that deviate from common market practice. C. Key changes to the 2026 remuneration policy Banco Santander continued to engage with shareholders and proxy advisors throughout 2025. In this context, investors broadly viewed the amendments to the 2025 remuneration policy as positive and didn’t raise the need for additional amendments to the key elements we addressed last year. Thus, the proposed remuneration policy for 2026 centres on further aligning the remuneration framework with the strategic priorities that we presented at the 2026 Investor Day. The Group reviewed the structures of both short and long-term incentives and their associated metrics and weightings to make sure that they properly promote the execution of our strategy and sustainable, long-term shareholder value. Moreover, and as investor feedback suggests, Banco Santander has made further progress in simplifying the quantitative and qualitative components of the bonus scorecard to increase clarity and understanding. According to the board, this approach translates into a stable, transparent remuneration framework that aligns well with the new strategy, reinforces pay-for-performance principles, supports long-term performance, and continues to match shareholders’ expectations. Directors’ remuneration for 2026 #### A. Directors' remuneration in their capacity as such In 2026, directors, in their capacity as such, will receive remuneration for supervisory and collective decision-making duties for a total of up to EUR 6 million (amount that has not been updated since 2012 and was last approved by the 2025 AGM). It consists of: • annual allocation, and • attendance fees. For 2026, the board of directors, on the remuneration committee’s recommendation, approved a 5% increase (in respect of 2025) to the annual allotments for the board (Chair and members) and its committees (including the executive committee), as well as to the amount allocated to the role of Lead Independent Director and non-executive Vice Chair and to attendance fees. This increase is below the average remuneration increase of the Grupo Santander’s staff in Spain in 2025 vs. 2024 on a like for like basis, which is 6%, and has been approved in accordance with the most recent market benchmarking analysis we conducted alongside an independent expert. The analysis confirmed a broadly competitive positioning, while indicating room to increase remuneration to further strengthen market alignment. The specific amounts and the form of payment are determined by the board of directors in the manner described in the respective [6.2 'Remuneration of directors for supervisory and collective](#i6ecb2a0d58d04b53bfadfa2a833efaa7_568) [decision-making duties: policy applied in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_568) section of the Annual report, based on the objective circumstances of each director. Additionally, as indicated in the description of the director remuneration system, Banco Santander will pay its directors’ the corresponding civil liability insurance premium in 2026. The related policy is common to all executives and was taken out under usual market condition, proportionate to Banco Santander's situation. B. Executive directors' remuneration for the performance #### of executive duties This section provides further details concerning the decisions made by the remuneration committee and board of directors in respect of 2026 executive director’s compensation for their executive duties, including firmwide performance highlights under their leadership and context for the upcoming cycle: • Record results and full delivery of 2025 Investor Day commitments: 2025 attributable profit of EUR 14,101 million in 2025, a record for the fourth consecutive year, driven by significant revenue growth across global businesses and larger customer base. Under our executive directors' leadership, Group has delivered on all financial and strategic commitments established for 2025 at the previous Investor Day. • This sustained financial performance translated into significant shareholder value creation: total shareholder return (absolute and relative vs. our peer Group) for the period 2025 was of +132% (the best among our group of peers) and +60% respectively, positioning Banco Santander as the largest bank by market capitalization in the Eurozone. Share price performance and market re-rating reflect market confidence in the Grupo Santander’s strategy, execution and leadership. 6 As indicated in the next section, executive directors contribution to the benefit systems includes both fixed and variable components Annual report 2025347 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | • Inorganic Strategy: outstanding execution of the Group’s inorganic strategy, exemplified by the sale of Santander Poland and the acquisitions (subject to obtaining the relevant regulatory and corporate approvals) of TSB in UK and Webster in US. These transactions demonstrate disciplined capital allocation, reinforce Santander’s leadership in key markets, and clearly reflect Executive Director’s ability to reshape the Group’s portfolio to enhance profitability and shareholder value. • Ambitious targets for the new strategic cycle: following completion of the 2025 cycle, the 2026 Investor Day set ambitious financial and strategic objectives through 2028. Delivering this next phase will require sustained execution, continued transformation and disciplined capital allocation in an evolving macroeconomic and competitive environment. • Evolving international footprint & compensation competitive positioning: Banco Santander’s earnings profile is increasingly international, with a significant proportion of revenues generated in the Americas. While the current peer group reflects Santander’s diversified presence, the strengthening of its position in the Americas with the acquisition of Webster reinforces the importance of maintaining appropriate compensation competitive positioning to support leadership stability and sustained performance in the next strategic cycle. In light of this sustained outperformance, consistent delivery across the completed strategic cycle and the expanded scope and complexity of the next phase, the board of directors, on the remuneration committee’s recommendation, determined that a measured increase of + 5% to their gross annual salaries and target bonuses for 2026 was appropriate (this is below the average remuneration increase of the Grupo Santander’s staff in Spain in 2025 vs. 2024 on a like for like basis, which is +6%). i) Fixed remuneration components A) Gross annual salary As a result of the aforementioned proposal of increase, the annual salaries for 2026 amount to EUR 3,607 thousand for Ana Botín and EUR 3,308 thousand for Héctor Grisi. Likewise, their gross annual salary amounts may increase owing to adjustments made to the fixed remuneration mix based on the criteria approved by the remuneration committee, provided this does not entail any cost increase for Banco Santander. B) Other fixed remuneration components • Benefit systems: defined contribution schemes as set out in section 'Benefit schemes' 6 . And regarding fixed pension contribution (22% of gross annual salary), for 2026 will amount to EUR 793 thousand for Ana Botín and EUR 728 thousand for Héctor Grisi. • Furthermore, with regard to the supplement to the Executive Chair’s fixed remuneration amounting to EUR 525 thousand per year, which was established in 2018 in connection with the elimination of her supplementary death and disability pension schemes and which she received until October 2025, the policy provides for the maintenance of this amount in order to prevent any unintended reduction in the Executive Chair’s remuneration. This supplement shall be excluded from the calculation of contributions to the pension scheme in which the Executive Chair participates and from any other remuneration items linked to her fixed remuneration. • Social welfare benefits: executive directors will also receive social welfare benefits such as life insurance premiums, travel grants, medical insurance and the allocation of remuneration to employee loans, in accordance with Banco Santander’s general policy for senior management, and in the same terms as the rest of employees. • Likewise, Banco Santander makes available to directors the human and material means required or considered appropriate for carrying out their duties (including any travel required for the exercise of their role). Any eventual private use of these means by the executive directors is duly paid by them under the similar terms and conditions that would be applied to third independent party under the supervision of the audit committee. This information can also be found under the 'Benefit plans' section. ii) Variable remuneration components The board approved the policy on executive directors' variable remuneration for 2026 on the remuneration committee's recommendation, based on the remuneration policy principles described at the beginning of this section [6.4 'Directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_574) [remuneration policy for 2026, 2027 and 2028'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_574). Executive directors’ variable remuneration consists of a single incentive scheme, linked to the achievement of short-and long- term objectives which constitutes the eleventh cycle of the deferred multiyear objectives variable remuneration plan. This incentive shall be governed by the provisions set forth in this policy and, in all matters not regulated herein, to the rules established by the board of directors in the regulations governing the incentive, as well as in the respective contracts and such supplementary documentation as may be necessary or appropriate.It is structured as follows: • The final amount of variable remuneration will be set at the start of the following year (2027) based on the target bonus amount and subject to compliance with the annual objectives described under section B) below. • 40% of the incentive will be paid immediately once the final amount has been set, and 60% will be deferred and paid out over five years and subject to long-term metrics: • The amount deferred over the first two years (20% of the total) will be paid in 2028 and 2029 on the condition that no malus clauses described under section 6.3 B v) are triggered. • The amount deferred over the next three years (40% of the total) will be paid in 2030, 2031 and 2032, on the condition that no malus clauses are triggered and long-term targets – described in section D) Deferred incentive subject to long-term performance objectives– are met. The Group can clawback incentives already paid in the cases and during the term set out in its malus and clawback policy, described under section 6.3. B) v). Exceptionally, when a new executive director joins Banco Santander, his/her variable pay may include a sign-on bonus and/ or buyouts. Annual report 2025348 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Variable components in executive directors’ total remuneration for 2026 cannot exceed the limit of 200% of fixed components submitted for approval to the 2026 AGM. However, under EU regulations on remuneration, certain variable components can be excluded. The proportion of fixed and variable remuneration elements of Banco Santander executive directors is due to the European regulation set out in the CRD V directive. In this sense, the setting of higher fixed amounts than other executive directors of non-EU banks within our peer group is due precisely to the non- requirement of this limit 2:1 of variable/fixed components for non- EU banks. A. Target bonus Variable remuneration for executive directors in 2026 will be set, at the beginning of 2027, based on bonus pool results versus items detailed in the scorecard herein, their individual target bonus and the achievement of their individual objectives. As a result of the aforementioned proposal of increase, the target bonuses for 2026 amount to EUR 6,701 thousand for Ana Botín and EUR 4,631 thousand for Héctor Grisi. B. Setting of final variable remuneration based on yearly results During 2025, the board of directors, upon proposal of the remuneration committee, approved an update to the bonus framework applicable from 2026 onwards. The revised framework enhances alignment with the Group’s Investor Day targets and further advances the simplification of the scorecard. Under this updated framework, executive directors’ variable remuneration for 2026 will be based on performance against the following components: 1. A set of quantitative metrics, structured around three strategic categories (business transformation - the first two ones-, capital and sustainable profitability) with the following weightings: i. Active customers (growth): 20%. Active customers allow sustainable growth and it is a clearest indicator of franchise vitality and competitive relevance. This metric measures quality growth instead of volume expansion and also ensures that short-term incentive does not encourage purely financial optimisation at the expense of commercial momentum. Active customers imply: 1. Revenue durability and recurring income. 2. Higher product penetration. 3. Deposit stability and funding strength. 4. Long-term earnings growth potential. ii. Cost metric: 20%. Cost evolution directly measures management’s ability to deliver operational discipline and execute transformation. In a structurally competitive and regulated industry: 1. Efficiency is a structural advantage. 2. Scale must translate into productivity gains. 3. Digitalisation and simplification must convert into measurable savings. iii. Capital generation (CET1): 25%. Capital generation is aligned with investor priorities and capital reality, and has become one of the most scrutinised metrics by investors. In the short term incentive of the scorecard, capital: 1. Aligns management directly with shareholder expectations. 2. Reinforces prudent risk management. 3. Signals credibility in delivering shareholder distributions. iv. RoTE metric: 35%. RoTE remains the most comprehensive metric of profitability within the industry, and ensures that: 1. Growth translates into returns. 2. Capital strength is not achieved at the expense of profitability. 3. Cost discipline feeds directly into shareholder value. 2. A qualitative assessment, streamlined from four to two components: i. Risk and Compliance, with an increased weighting of +/-15%, reinforcing alignment with prudent risk management and regulatory expectations and incorporating relevant E&S risk management indicators. ii. Relative performance versus peers, maintained at +/-10%, providing an external performance benchmark to support bonus calibration in a competitive market environment. As part of the simplification of variable remuneration framework, sustainability no longer features as a standalone qualitative component but, in addition to the incorporation of E&S risk management indicators in the risk and compliance qualitative assessment, sustainability-related objectives will continue to be reflected within the long-term incentive framework, consistent with their multi-year time horizon. In addition, from 2026 onwards, the long-term metrics (including these sustainability-related objectives) will apply to a broader population of approximately 250 senior executives across the Group (compared to the Top 38 executives in 2025), further strengthening alignment across senior leadership. 3. An exceptional adjustment that must be duly supported and may involve changes owing to control and/or risk deficiencies, negative assessments from supervisors or unexpected material events. Annual report 2025349 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Quantitative metrics | `+/- | Qualitative assessment | ?+/- | Exceptional adjustment | Accordingly, the proposed quantitative metrics and weightings are: | | | | | --- | --- | --- | | | | | | Category | MetricsA | Weighting | | Transformation: Weight: 40% | Active customers (growth) | 20% | | Costs | 20% | | Capital Weight: 25% | Capital generation | 25% | | Sustainable profitability Weight: 35% | RoTE | 35% | | | | | A. For this purpose, these metrics may be adjusted upwards or downwards by the board, following a proposal from the remuneration committee, when inorganic transactions, material changes to the Group’s composition or size or other extraordinary circumstances (such as impairments, extraordinary impacts of macroeconomic environment, regulatory changes or restructuring processes) have occurred which affect the suitability of the metric and achievement scale established in each case and resulting in an impact not related to the performance of the executive directors and executives being evaluated. And finally, to the result obtained above, we add or subtract the qualitative assessment according to this table: | | | | --- | --- | | | | | Qualitative assessment | Weight | | Bench vs. peers | +/-10% | | Risk and Compliance | '+/-15% | Lastly, as additional conditions for determining the incentive, the following circumstances must be confirmed to set variable pay: • If the Group’s ONP for 2026 were 50% less than in 2025, variable pay would in no case exceed 50% of the benchmark incentive for 2026. • If the Group’s ONP were negative, the incentive would be zero. When setting individual bonuses, the board will also consider restrictions to the dividend policy imposed by supervisors. C) Forms of payment of the incentive To strengthen a strategic line that is key to Banco Santander's future, and with the aim of providing a strong alignment with PagoNxt's success, the Executive Chair and the CEO will continue to receive RSU of PagoNxt. The RSU substitute part of their variable pay instruments in Banco Santander shares without increasing their total pay and will not represent more than 10% of their variable pay. Specifically, as regards 2026, Ana Botín would receive the equivalent of EUR 500 thousand in RSU, and Héctor Grisi would receive the equivalent of EUR 420 thousand in RSU, in accordance with PagoNxt's long term incentive plan. Each RSU would grant the right to a share in PagoNxt or the holding entity of its group (or its equivalent in cash) at the moment when, according to such plan, a liquidity event, a repurchase or a liquidation of such instruments takes place. This plan is subject to the same principles of risk alignment, variable remuneration caps, deferrals and malus and clawback as the incentive which applies to executive directors described herein, but with payment being done in PagoNxt instruments. Therefore, the variable remuneration of executive directors will be paid 60% in instruments, split as: • the amount of PagoNxt RSU set for each year (which cannot exceed 10% of their variable pay); and • the rest, all in shares of Banco Santander. One portion will be paid in 2027 and the other will be deferred for five years and contingent on long-term metrics: a) 40% of variable remuneration is paid in 2027 net of tax, with 50% in cash and 50% in instruments. b) 60% paid, if applicable, in five parts in 2028, 2029, 2030, 2031 and 2032 (net of tax), in instruments, under the conditions stipulated section E) below, according to the following annual distribution: | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | 2028 | 2029 | 2030 | 2031 | 2032 | | % Variable remuneration | 10% | 10% | 13.33% | 13.33% | 13.33% | | In cash | 5% | 5% | 3.33% | 3.33% | 3.33% | | In instruments | 5% | 5% | 10% | 10% | 10% | This distribution will likewise be followed for the payments to be made in the corresponding years under the tenth cycle of the deferred multiyear objectives variable remuneration plan. The final three payments, weighting 40%, will also be subject to long-term objectives described in section D) below. Shares shall be subject to a three-years retention period, unless the executive directors already hold shares for an amount equivalent to 200% of their fix annual remuneration -in which case the regulatory one year retention period will apply. D) Deferred variable pay subject to long-term objectives The remuneration committee proposed to maintain the current long-term performance metrics and weightings for the 2026-2028 performance cycle, as they remain fully aligned with the Group’s commitments presented at Investor Day. The framework continues to prioritise long-term shareholder returns, profitability in the long-term as well as the sustainability of the balance sheet and its activities and how we carry them out. From 2026 onwards, the long-term metrics will apply to a broader population of approximately 250 senior executives across the Group, including executive directors, compared to the Top 38 executives in 2025. This extension reinforces alignment across senior leadership with the Group’s long-term strategic and financial objectives. Accordingly, the long-term performance metrics and weightings will continue to be: 7TSR refers to the difference (%) between the final and initial values of capital invested in ordinary shares of Banco Santander. The final value is calculated based on the dividends or other similar concepts (such as the Santander Scrip Dividend programme) shareholders receive for this investment during the corresponding period -as if they had invested in more shares of the same type at the first date on which the dividend or similar concept was payable to shareholders- and the weighted average share price at that date. To calculate TSR, the weighted average daily volumes of the weighted average listing prices for the fifteen trading sessions prior to 1 January 2026 (exclusive) is considered (to calculate the initial value) and the fifteen trading sessions prior to 1 January 2029 (exclusive) (to calculate the final value). 8 There are thresholds that go beyond current targets, which should not be considered a revision of them, but a way to further motivate our management team, in order to progress beyond targets on sustainability main strategic lines. Annual report 2025350 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | • Relative performance of Banco Santander's TSR, with a weighting of 50% of the total (unchanged from 2025, when the weighting was increased to reinforce alignment with shareholder returns). • RoTE with a weighting of 30%, as a measure of sustainable long- term value creation. • Sustainability metrics, with a weighting of 20% of the total. Thus, the amounts deferred in 2030, 2031 and 2032 will be paid on the condition that the group achieves these long-term targets for 2026-2028, in addition to the terms described in section B). The long-term specific targets and coefficients are: A. Relative performance of Banco Santander's TSR in 2026-2028 in respect of the weighted TSR of a peer group comprising 9 credit institutions, with the appropriate TSR ratio based on the group’s TSR among its peers. | | | | --- | --- | | | | | Ranking of Santander TSR | 'TSR Ratio' | | The 100th percentile | 1.5 | | Between the 75 th and 100 th percentiles (not inclusive) | 1 – 1.5 A | | Between the 50 th and 75 th percentiles (not inclusive) | 0.5 - 1A | | Less than the 50 th percentile | 0 | A. Proportional increase in TSR coefficient within this bracket of the scale according to the number of positions moved up in the ranking. TSR 7 measures the return on shareholders’ investment. It is the sum of the change in share price plus dividends and other similar items shareholders can receive during the period. The peer group comprises BBVA, BNP Paribas, Citi, Credit Agricole, HSBC, ING, Itaú, Scotiabank and Unicredit. B. Banco Santander’s consolidated RoTE target in 2028. The RoTE ratio for this target is obtained as follows: | | | | --- | --- | | | | | RoTE in 2028 (%) | ‘RoTE Ratio' | | ≥ 22% | 1.5 | | ≥ 18% but <22% | 0 – 1.5 A | | < 18% | 0 | A. Straight-line increase in RoTE coefficient within this bracket of the scale based on the specific percentage of RoTE in 2028. C. Sustainability metrics. The sustainability metrics are designed to support delivery of the Group’s sustainability goals, while contributing to a simplified and focused long-term incentive structure. More specifically, for the 2026 incentive, the sustainability portion of the long-term incentive will be determined based on performance in the following metrics and targets, which together determine the final payout of 20% of the portion of variable compensation tied to multi-year goals. Actions lines and associated targets are described below 8: 1. Women in executive positions by 2028: In those geographies where regulation or governmental policy does not support establishing specific inclusivity objectives, there will not be specific goals tied to incentive compensation and will not be included in the methodology or formula that determines an element of the total executive payout. In those instances, and to the extent permissible, they will be assessed with other Group’s initiatives, factors or projects as aspirational goals that can be a factor considered in making compensation decisions. | | | | --- | --- | | | | | Women in executive positions B (%) | Coefficient | | ≥ 39.4% | 1.25 | | ≥ 38.8% but < 39.4% | 1 – 1.25 A | | ≥ 37.8% but < 38.8% | 0 – 1A | | < 37.8% | 0 | A. Increase of the coefficient is proportional to its position on this line of the scale. B. Executive positions make up 15% of the total workforce. 2. Average annual total number of people that received financial inclusion support in the period 2026 and 2028: | | | | --- | --- | | | | | Financial inclusion B (millions of people) | Coefficient | | ≥ 6,5 | 1.25 | | ≥ 5 but < 6,5 | 1 – 1.25 A | | ≥ 3.5 but < 5 | 0 – 1A | | < 3.5 | 0 | A. Increase of the coefficient is proportional to its position on this line of the scale. B. Average annual total number of people unbanked, underbanked, in financial distress or with difficulty to access credit to whom we provide tailored access and finance solutions, aiming to meet local financial inclusion needs in a recurrent, comprehensive, affordable and effective way. Financial Inclusion thresholds have shifted from accumulative to annual average because it reflects better the performance of these programs. 3. Sustainable business. This goal includes how we support our customers' business through sustainable finance: | | | | --- | --- | | | | | Finance raised and facilitated B between 2026 and 2028 (EUR bn) | Coefficient | | ≥ 240 | 1.25 | | ≥ 192 but < 240 | 1 – 1,25 A | | ≥ 140 but < 192 | 0 – 1 A | | < 140 | 0 | A. Increase of the coefficient is proportional to its position on this line of the scale. B. Grupo Santander's contribution to our customers’ sustainable business: CIB green finance raised and facilitated and Retail & Commercial sustainable finance finance and Digital Consumer Bank green finance. Each sustainability goal has a different weighting: 1. Women in executive positions: 20% 2. Financial inclusion: 20% 3. Sustainable business: 60% C = (20% Goal 1 +20% Goal 2 +60% Goal 3) ![]() 9When termination of the relationship with Banco Santander or another entity of the Santander Group is due to retirement, early retirement or pre-retirement of the executive director, for a termination judicially declared to be improper, unilateral separation for good cause by an employee (which includes, in any case, the situations set forth in section 10.3 of Royal Decree 1382/1985 of 1 August governing the special relationship of senior management, for the persons subject to these rules), permanent disability or death, or as a result of an employer other than Banco Santander ceasing to belong to the Santander Group, as well as in those cases of mandatory redundancy, the right to delivery of the shares and cash amounts that have been deferred, as well as, where appropriate, the amounts derived from the inflationary adjustment of the deferred amounts in cash, shall remain under the same conditions in force as if none of such circumstances had occurred. In the event of death, the right shall pass to the successors of the executive director. In cases of justified temporary leave due to temporary disability, suspension of the contract of employment due to maternity or paternity, or leave to care for children or a relative, there shall be no change in the rights of the executive director. If the executive director goes to another company of the Santander Group (including through international assignment and/or expatriation), there shall be no change in the rights thereof.If the relationship terminates by mutual agreement or because the executive director obtains a leave not referred to in any of the preceding paragraphs, the terms of the termination or temporary leave agreement shall apply. None of the above circumstances shall give the right to receive the deferred amount in advance except where necessary to comply with mandatory regulations or, where appropriate, to avoid a conflict of interest. If the executive director or the successors thereof maintain the right to receive deferred remuneration in cash and shares, as well as, where appropriate, the amounts derived from the inflationary adjustment of the deferred amounts in cash, such remuneration shall be delivered within the periods and upon the terms set forth in the Regulations of the plan. Annual report 2025351 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Finally, the following formula will be used to set the annual amount of performance-based deferred variable remuneration in 2030, 2031 and 2032 ('final annuity'), without prejudice to any adjustment deriving from the application of the malus policy (see section 6.3 B v): Final annuity = Amt. x (5/10 x A + 3/10 x B + 2/10 x C) where: • 'Amt.' is one third of variable remuneration deferred conditional on performance (i.e. Amt. will be 13.33% of the total incentive set in early 2027). • 'A' is the TSR ratio calculated as the scale in the table above, according to the relative performance of Banco Santander’s TSR within its peer group in 2026-2028. • ‘B' is the RoTE coefficient according to the scale in the table above, based on RoTE at year-end 2028. • ‘C’ is the coefficient resulting from the sum of weighted coefficients for each of the three sustainability targets for 2028 (see section (c) above). • In any event, if the result of (5/10 x A + 3/10 x B +2/10 x C) is greater than 1.25, the multiplier will be 1.25. And the maximum achievement ratio will also remain at 125% so executives have the incentive to exceed their targets; however, the maximum achievement ratio for effectively paid remuneration will not exceed the thresholds approved at the AGM. Lastly, to verify compliance with these long-term objectives, the board, following a proposal from the remuneration committee, may adjust them to remove the effects of any regulatory change to its calculation rules or any extraordinary circumstances (such as impairments, corporate transactions, share buybacks or restructuring procedures) that have occurred which affect the suitability of the metrics and achievement scales established in each case and resulting in an impact not related to the performance of the executive directors and executives being evaluated. E) Other terms of the incentive Payment of the deferred amounts (including those linked to long- term targets) will occur only if they remain in the Group 9 and none of the circumstances triggering malus clauses arise (as per the ex post adjustments (malus and clawback) section in the Group’s remuneration policy) under terms similar to those indicated for 2025 (detailed in section 6.3 B v)). Furthermore, the Group can claw back paid incentives under the scenarios, period and terms and conditions set out in the remuneration policy, expanded in 2023 to adapt it to the new SEC regulation. Malus and clawback adjustment provisions are triggered in the event of poor financial performance of the institution as a whole or of a specific division or area thereof or of the exposures from staff as a result of an executive(s)’s management of, at least, one of these factors: • Significant failures in risk management by Banco Risk Santander, or by a business or risk control unit. • An increase in capital requirements at the Banco Santander or one of its business units not Capital planned at the time that exposure was generated. • Regulatory penalties or legal convictions for events that might be attributable to the unit or Regulation and staff responsible for them. In addition, failure to internal codes comply with Banco Santander’s internal codes of conduct. • Improper conduct, whether individual or collective. Negative effects deriving from the marketing of unsuitable products and the Conduct liability of persons or bodies making such decisions will be considered especially significant. And the effect of inflation on the deferred amounts in cash may be offset. The remuneration committee may propose to the board adjustments in variable remuneration under exceptional circumstances owing to internal or external factors, such as requirements, orders or recommendations issued by regulatory or supervisory bodies. Such adjustments will be described in detail in the report on the remuneration committee and the annual report on directors’ remuneration put to a non-binding vote at the AGM. F) Payments of variable remuneration in instruments Pursuant to the remuneration policy in force, the maximum number of shares that may, where applicable, be delivered to each executive director under the eleventh cycle of the deferred multiyear objectives variable remuneration plan shall be determined by the board of directors on the basis of the average weighted daily volume of the average weighted listing prices of Santander shares during the thirty trading sessions prior to the Friday (exclusive) preceding the date of the board meeting at which the bonus for the executive directors for financial year 2026 is approved (the '2027 Listing Price'). It has been estimated that the maximum amount to be delivered in shares to the executive directors of Banco Santander amounts to EUR 14 million (the 'Maximum Amount Distributable in Shares for Executive Directors' or 'MADSED'). The maximum number of Santander shares that may be delivered to the executive directors (the 'Limit on Shares for Executive Directors' or 'LSED') will be determined by applying the following formula: Annual report 2025352 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | LSED = MADSED / 2027 Listing price Hedging transactions in respect of the value of Santander shares received during the retention and deferral periods are expressly prohibited. The sale of such shares during the year following their delivery is likewise prohibited. Additionally, the shares shall be subject to the shareholding policy described below under section 'iii) Shareholding'. In any event, the final number of shares to be delivered to each executive director shall take into account the amount resulting from the application of the corresponding taxes (withholdings or payments on account) in accordance with the procedure established in the regulations governing the relevant cycle. The shares to be delivered to the executive directors may be owned by the Banco Santander or any of its subsidiaries, may be newly issued shares, or may be obtained from third parties with whom agreements have been signed to ensure that the commitments made will be met. G) Other provisions related to the eleventh cycle of the deferred multiyear objectives variable remuneration The board of directors shall implement the eleventh cycle of the deferred multiyear objectives variable remuneration plan. For such purpose, and without prejudice to any other powers recognised within the scope of its authority, the board of directors may carry out the following actions, which, having been reduced as regards those existing for previous cycles, will only be applied where duly justified: a. To interpret, specify and develop, as necessary or appropriate, the terms of the cycle set forth in the policy and to approve the regulations and agreements through which the eleventh cycle is implemented, as well as the rest of cycles of the plan that remain in force. b. To approve and carry out such communications and take any action as may be necessary before public or private entities to better implement the cycle. c. To implement the cycle in its own terms and, for such purpose, to: (i) determine the number of shares to be received by each executive director, updating such number in the event of changes in the nominal value of the shares or transactions with an equivalent effect, so as to maintain the percentage they represent of the total share capital; (ii) compensate for any dilution effect affecting shares subject to deferred delivery (and not yet delivered) as a result of corporate transactions or shareholder distributions; (iii) extend the deferral period or the deferred amounts in order to adapt them to applicable legal or regulatory requirements; (iv) verify the achievement of the objectives established for the cycle, being allowed to rely on duly qualified third parties to verify the degree of achievement thereof; (v) determine the level of achievement of the objectives and, upon proposal of the remuneration committee and with due justification, adjust such level positively or negatively where (a) regulatory changes, inorganic transactions, material changes in the composition or size of the Group, or other duly justified extraordinary circumstances (such as impairments, legal changes, corporate transactions, share buyback programmes or restructurings) have occurred, and (b) such changes affect the suitability of the metric and achievement scale established in each case or result in an impact unrelated to the performance of the executive directors assessed. d. To adapt the share delivery mechanisms (in all cases subject to the maximum amount approved and to the essential conditions upon which delivery depends), as well as those mechanisms implemented for the payment of taxes. e. Where duly justified (including where motivated by legal, regulatory or tax reasons, by criteria of competent authorities, or by inorganic transactions, similar events or extraordinary circumstances), upon proposal of the remuneration committee and, in any event, without altering the basic elements defined by the general shareholders’ meeting or exceeding the limits approved thereby, the board may also adjust the provisions of the plan to the circumstances that may arise at any given time, including: (i) adapting the peer group where unforeseen changes or objective circumstances require modification of the comparison rules or of the peer group itself, and, where a mandatory regulation or administrative interpretation prevents the implementation of the cycle on the terms provided, making the necessary adjustments; and (ii) adapting the metrics and the associated achievement scales (including through the adjustment, removal or inclusion of metrics) in order to ensure better alignment of the plan with the objectives pursued thereby, as set forth in the policy. The board of directors is also authorised to delegate (with the power of substitution when appropriate) to the executive committee or to any director with delegated powers those powers granted under this policy that are delegable, without prejudice to any powers of attorney that may exist or be granted in relation thereto, and to the role of the Group human resources committee in interpreting and implementing the foregoing provisions. iii. Shareholdings As described in section [6.3.E](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571), in addition to the regulatory obligation not to sell shares they receive as remuneration for a year since from their award date, in order to comply with recommendation 62 of the Spain's Corporate Governance Code, the policy on shareholdings includes the obligation for executive directors not to sell the shares they receive as variable remuneration for a period of three years from their award date, unless the executive director already holds Banco Santander shares for an amount equivalent to twice his/her annual salary. Directors’ remuneration for #### 2027and2028 #### A. Directors’ remuneration in their capacity as such For 2027 and 2028, no changes to directors’ remuneration are planned in respect of what is foreseen herein for 2026. However, shareholders at the 2027 or 2028 AGMs may approve an amount higher than the six million euros currently in force, or the board may approve an alternative allocation of that amount to directors in accordance with the criteria in article 58.2 of Banco Santander’s Bylaws (i.e. duties and responsibilities; positions held on the board; membership and attendance at committee meetings; and other objective circumstances). B. Directors' remuneration for the performance of #### executive duties Executive directors’ remuneration will conform to principles similar to those applied in 2026, with the following changes. Annual report 2025353 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | i) Fixed components of remuneration A) Gross annual salary Executive directors’ annual gross fixed pay may be adjusted each year based on the criteria approved by the remuneration committee at any given time. Otherwise, it must be disclosed in the report on the remuneration committee and the annual report on director's remuneration put to a non-binding vote at AGM. B) Other fixed remuneration components No changes planned in respect of the terms for 2026. ii) Variable remuneration components The policy on executive directors’ variable remuneration for 2027 and 2028 will be based on the same principles as in 2026, following the same single-incentive scheme (by implementing a new cycle for each financial year under the deferred multiyear objectives variable remuneration plan), and subject to the same rules of operation and limitations. A) Setting variable remuneration Executive directors’ variable remuneration for 2027 and 2028 will be set based on the corporate bonus pool and a benchmark approved for each year which takes into account: • a set of short-term quantitative metrics measured against annual objectives and aligned with the Group’s strategic plan. These metrics will also cover, at least, solvency and customers (the board of directors is entitled, upon proposal of the remuneration committee, to adjust the metrics as necessary to ensure that they reflect the Group’s strategy). They can be measured at Group level and, where applicable, at division level, for a specific business division headed by an executive director. The results of each metric can be contrasted with the budget for the financial year, as well as with growth from the previous year. • a qualitative assessment that cannot raise or lower the result of the quantitative metrics by more than 25%. It will be conducted for the same categories as the quantitative metrics, including relative performance against market and risk and compliance management. • an exceptional adjustment that must be duly substantiated and may involve changes owing to control and/or risk shortfalls, negative assessments from supervisors or unexpected material events. The quantitative metrics, the qualitative assessment and potential extraordinary adjustments will allow main objectives are considered from the perspective of the various stakeholders and that the importance of risk and capital management is factored in. Once the corporate bonus pool is fixed according to the criteria above, the board of directors, further to a proposal from the remunerations committee, decides on the individual bonus, taking into consideration the level of achievement of their individual objectives, which in general terms coincide with the bonus pool metrics, their compliance with corporate values and risk culture. Lastly, the following circumstances must be confirmed to set variable remuneration: • If ONP (ordinary net profit, as described in section 6.3) does not reach a certain compliance threshold, the incentive cannot exceed 50% of the year’s individual target bonus. • If the group’s ONP were negative, the incentive would be zero. • When setting individual variable pay, the board will also consider restrictions to the dividend policy imposed by supervisors. B) Forms of payment of the incentive The variable remuneration of executive directors for 2027 and 2028, will be paid as follows: • 40% in cash; • and 60% in instruments, split as follows: • the amount of PagoNxt RSU set for each year (as described below); and • the rest, all in shares of Banco Santander. It is also envisaged that for 2027 and 2028 Ana Botín would receive the equivalent of EUR 500 thousand in RSUs, and Héctor Grisi would receive the equivalent of EUR 420 thousand in RSU, in accordance with PagoNxt's long term incentive plan. Each RSU would grant the right to a share in PagoNxt or the holding entity of its group (or its equivalent in cash) at the moment when, according to such plan, a liquidity event, a repurchase or a liquidation of such instruments takes place. The RSU will substitute part of their Santander variable pay instruments without increasing their total pay and will not represent more than 10% of their variable pay in any event. C) Deferred variable remuneration subject to long-term objectives The last three annual payments of each deferred variable remuneration amount will be made in accordance with the terms described under the eleventh cycle of this variable remuneration plan and if the Group fulfils long-term objectives for at least 3 years. This may confirm, reduce or increase payment amounts and the number of deferred instruments. Long-term metrics will reflect value creation and shareholder returns as well as capital and sustainability over a minimum period of 3 years. They will be aligned with the Group’s strategic plan and main priorities towards its stakeholders. They can be measured for the entire Group or by country or business, when appropriate, and subsequently compared to a group of peers. The board of directors, upon proposal of the remuneration committee, shall determine the specific long-term objectives and payout scales that reflect alignment with the Group’s strategic plan. D) Other terms of the incentive No changes to the continuity, malus and clawback clauses of the remuneration policy for 2026 described in the eleventh cycle of this variable remuneration plan. Furthermore, no changes are planned ( in connection with the same cycle) in respect of the clauses on hedging instruments or the deferred amounts in cash adjusted for inflation. E) Payments of variable remuneration in instruments The provisions set forth in relation to the eleventh cycle of this deferred multiyear objectives variable remuneration plan shall likewise apply, mutatis mutandis, to the cycles of the incentive to be approved for financial years 2027 and 2028. In particular, for the purpose of determining the number of shares to be delivered, account shall be taken of the average weighted daily volume of the average weighted listing prices of Santander Annual report 2025354 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | shares during the thirty trading sessions prior to the Friday (exclusive) preceding the date of the board meeting at which the bonus for the executive directors for the corresponding financial year is approved. It has been estimated that the maximum amount to be delivered in shares to the executive directors of Banco Santander in 2027 amounts to EUR 14 million, unless the general shareholders’ meeting resolves to amend such limit. The same shall apply in 2028. In any event, the provisions relating to the maximum number of shares to be delivered under the eleventh cycle shall also apply to the twelfth and thirteenth cycles. G) Other provisions related to the twelfth and thirteenth cycles of the deferred multiyear objectives variable remuneration The provisions relating to the implementation of the eleventh cycle of the deferred multiyear objectives variable remuneration plan shall apply to the twelfth and thirteenth cycles of such plan. iii) Shareholdings The policy on shareholdings approved in 2016, with the amendment introduced in 2020 relating to not selling the shares they receive as variable remuneration for a period of three years detailed in section 6.3.E above will apply in 2027 and 2028, unless the remuneration committee proposes it be amended to the board in light of exceptional circumstances (regulations, orders or recommendations from regulators or supervisors). Such amendments would be described in detail in the report on the remuneration committee and the annual report on director’s remuneration put to a non-binding vote at the annual general meeting. iv) Principle of equal pay The same principle of equal pay that applies for executive directors and any other Santander employee described in respect of 2026 apply for 2027 and 2028. Terms and conditions of executive director contracts and other provisions applicable to all directors Executive directors’ terms of service are governed by board- approved contracts they sign with Banco Santander. The basic terms and conditions, besides those relating to the remuneration mentioned above, are the ones described here below. A. Exclusivity and non-competition Executive directors may not contract with other companies or entities to perform services, unless expressly authorised by the board of directors. In all cases, they are bound by a duty of non- competition in relation to companies and activities similar in nature to Banco Santander and its consolidated group. In addition, executive director contracts impose prohibitions on competing and attracting customers, employees and suppliers, which can be enforced for two years after their termination in their executive duties for reasons other than a breach by Banco Santander. In regard to Ana Botín and Héctor Grisi, the compensation to be paid by Banco Santander for this duty of non- competition is twice the amount of the fixed remuneration. Finally, all directors must comply with the Board Rules and regulations provisions that prevent them from carrying out competing activities and oblige them to communicate any other professional activities, that must be assessed by the nominations committee in order to check whether there is any conflict of interest or impair director´s capacity to discharge his duties as such. #### B. General code of conduct Directors are obliged to adhere strictly to the General Code of Conduct and the Code of Conduct in the Securities Markets, especially in terms of confidentiality, professional ethics and conflicts of interest. C. Termination The length of executive directors' contract is indefinite. Contracts do not provide for any severance payment upon termination apart from what the law provides. If Ana Botín’s contract is terminated by Banco Santander, she must remain available to the group for four months in order to ensure proper transition. During this period, she would continue to receive her gross annual salary. #### D. Benefit plans Executive directors participate in the defined contribution pension scheme created in 2012. It covers retirement, disability and death. Banco Santander makes annual contributions to executive directors’ benefit plans schemes. Annual contributions are calculated in proportion to executive directors’ pensionable bases, and the Group will continue to make them until the executive directors’ leave the Group or until their retirement within the Group, their death or disability. The pensionable base of executive directors’ annual contributions is their fixed remuneration plus 30% of the average of their last three variable remuneration amounts. Contributions will be 22% of pensionable bases. The pension amount that corresponds to contributions linked to variable remuneration will be invested in Santander shares for five years from the earlier of the date of retirement or cessation. It will be paid in cash after the five years have elapsed or on the retirement date (if later). Moreover, the malus and clawback clauses for variable remuneration contributions will apply for the same period as the related bonus or incentive. This benefit plan is outsourced to Santander Seguros y Reaseguros, Compañía Aseguradora, S.A. Executive directors’ economic rights under the scheme belong to them even if they are not active in the group at the time of their retirement, death or disability. Their contracts do not provide for any severance pay upon termination apart from what the law provides. #### E. Insurance and other remuneration and benefits in kind The Group has life and health insurance policies taken out for executive directors. Insurance premiums for 2026 include standard life insurance. In 2027 and 2028, premiums could vary if directors’ fixed pay or actuarial circumstances change. Furthermore, directors are covered by Banco Santander’s civil liability insurance policy and may receive other benefits in kind (such as employee loans) pursuant to the group’s general policy and subject to the corresponding tax treatment. Likewise, the Bank makes available to directors the human and material means required or considered appropriate for carrying out their duties (including any travel required for the exercise of their role). Any eventual private use of these means by the directors is duly paid by them under the similar terms and conditions that Annual report 2025355 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | would be applied to third independent party under the supervision of the audit committee. F. Confidentiality and return of documents Directors are bound to a strict duty of confidentiality during their relationship and subsequent to termination. Directors are required to return any documents and items relating to their activities and in their possession to Banco Santander. Agreements with non-executive members of the #### board José Antonio Álvarez has a contract since 1 January 2023 to represent the bank before supervisors, international bodies, sector organizations and other entities and authorities in institutional and public policy matters as necessary. This is an annual contract which has been renewed for the year 2026. In 2026 he will receive a fixed remuneration of EUR 1,000 thousand. Luis Isasi has a contract since 4 April 2020 to act as non-executive Chair of the Santander España business unit (for which he receives EUR 925 thousand a year) and to serve as a member of the board of Santander España business unit (for which he receives EUR 75 thousand a year). His contract is for an indefinite term and does not entitle him to any compensation if terminated. #### Appointment of new executive directors The components of remuneration and basic structure of the agreements described in this remunerations policy will apply to any new director that is given executive functions at Banco Santander, notwithstanding the possibility of amending specific terms of agreements so that, overall, they contain conditions similar to those previously described. Directors’ total remuneration for executive duties cannot exceed the highest remuneration received by the group’s current executive directors under the remuneration policy approved by shareholders. The same rules apply if a director assumes new duties or becomes an executive director. If a director takes up executive functions in a specific division or local unit, the board of directors, on the remuneration committee's recommendation, can adapt the metrics for setting and paying incentives to take that division or local unit into account in addition to the Group. Remuneration paid to directors in that capacity will be included within the maximum amount set by shareholders to be distributed by the board of directors in the terms described above. A new director coming from an entity outside Grupo Santander could be paid a buyout to offset any variable remuneration foregone for having accepted a contract with the group; and/or a sign-on bonus for leaving to join Banco Santander. This compensation could be paid fully or partly in shares, subject to the delivery limits approved by the general shareholder's meeting from time to time. In any event, the maximum number of shares that may be delivered shall be a number such that, multiplying the number of shares delivered (or recognised) on each occasion by the average weighted daily volume of the average weighted listing prices of the Santander shares for the thirty trading sessions prior to the date on which they are delivered (or recognised), does not exceed the amount of EUR 40 million. This amount shall be calculated from the 2026 AGM to the 2027 AGM, and so on for each of the following years (from AGM to AGM) throughout the duration of this policy. Furthermore, it is envisaged to submit to the approval of the next ordinary AGM the authorisation to deliver a specified maximum number of shares within the framework of potential hirings of executive directors to whom the regulations on buyouts apply, under the terms indicated. In addition, sign-on bonuses can only be paid once to new executive directors, in cash or in shares, and in each case they will not exceed the sum of the maximum variable remuneration awarded for all executive directors. #### Temporary exceptions to the remuneration #### policy According to section 6 of Article 529 novedecies of the Spain's Companies Act, specific exceptions may apply to components in the remuneration policy, based on particular business needs or macroeconomic context in the Group's geographies, provided that they are required to serve the long-term interests and sustainability of the entity; ensure its viability; and require to be adopted urgently. Such exceptions include: • Complex macroeconomic scenarios where the ordinary course of the business is severely impacted. • The appointment of a new Executive Chair or CEO, or the need to retain an executive director to avoid a vacancy at the head of the Group (vacatio regis) during especially complex times for the business. • The need to adapt to regulatory change. To apply, exceptions must be supported by: • a reasoned remuneration committee proposal; and • board of directors analysis and approval. Any applied exception will be explained in the Annual report on directors' remuneration. 6.5 Preparatory work and decision- making for the remuneration policy; #### remuneration committee involvement Section [4.7 'Remuneration committee activities for 2025](#i6ecb2a0d58d04b53bfadfa2a833efaa7_541) ', (the report on the remuneration committee) states: • Pursuant to Banco Santander’s Bylaws and the Rules and regulations of the board, the duties relating to the remuneration of directors performed by the remuneration committee. • The composition of the remuneration committee at the date the report is approved. • The number of meetings held in 2025, including a joint session with the risk supervision, regulation and compliance supervision committee. • The date of the meeting in which the report was approved. The 2024 annual report on directors’ remuneration was approved by the board of directors and put to consultative vote at the 2025 Annual report 2025356 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | AGM, with 93.27% of the votes in favour. The tally of the votes was: | | | | | --- | --- | --- | | | | | | Voting results of 2024 annual report on directors’ remuneration | | | | | Number | % of total A | | Votes | 10,380,448,441 | 99.96% | | | | | | --- | --- | --- | | | | | | | Number | % | | Votes forB | 9,567,416,155 | 93.27% | | Votes againstB | 689,902,170 | 6.73% | | BlankC | 3,636,373 | 0.04% | | AbstentionsC | 119,493,743 | 1.15% | A. Percentage on total valid votes and abstentions. B. Percentage of votes for and against. C. Percentage of Banco Santander's share capital on the date of the AGM. #### Decision process for the development, review #### and application of the policy Pursuant to Article 529 novodecies of the Spain's Companies Act, the remuneration committee issues the report on the proposed remuneration policy for 2026 , 2027 and 2028 herein. The board of directors then submits it to the 2026 AGM as a separate item on the agenda and an integral part of this text. See [6.4 ' Directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_574) [remuneration policy for 2026, 2027 and 2028'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_574). Banco Santander’s Compensation function prepares the remuneration policy with the suggestions, requests and comments received during the year from the human resources committee, remuneration committee and the board of directors. A first draft of the policy is submitted to the remuneration committee for review every January. The review considers the suggestions, requests and comments the Chair and Lead Independent Director receive through shareholder and stakeholder engagement during the year on our corporate governance and our remuneration structures. Regulators’ recommendations and legal requirements that may have come to light since the last time the director remuneration policy was submitted for approval by the AGM are also considered. The committee also makes sure the policy is consistent with the Group's culture and our Simple, Personal and Fair values. After the preliminary presentation, incorporating the changes and suggestions of these first revisions, the Compensation function then prepares the final draft for the remuneration committee to submit to the board of directors for approval in February, and will be submitted for approval by the AGM. Based on the analysis carried out in the context of the 2025 annual remuneration report elaboration and its continued supervision of the remuneration policy, the remuneration committee believes the director remuneration policy for 2026, 2027 and 2028 which is included in section 6.4 above is consistent with the principles of Banco Santander’s remuneration policy and its remuneration scheme set out in the Bylaws. The policy aims, among other aspects, (i) to maintain a simple executive remuneration scheme, with three categories of quantitative metrics (business transformation, sustainable profitability and capital) to further align with value creation and capital generation; (ii) outperform peers in value creation aspects; and, (iii) regarding metrics linked to multiyear objectives, to prioritize long-term profitability for shareholders and Santander and a sustainable balance sheet (total shareholder return, RoTE and sustainability-related metrics related to our responsible banking targets) in order to follow best market practice and meet our stakeholders’ needs. In 2025, no deviations from, or temporary exceptions to, the application of the remuneration policy occurred. 6.6 Remuneration of non-director #### members of senior management 2025 variable remuneration was approved by the board of directors on 3 February 2026 in view of the recommendation from the 2 February 2026 remuneration committee. It was set according to Banco Santander’s general remuneration policy as well as specific details pertaining to senior management. The determination of these variable remuneration amounts is based on the application of Banco Santander’s general remuneration policy, as well as on the specific provisions applicable to the senior management population. In general, senior management variable remuneration packages were calculated with the quantitative metrics and qualitative assessment used for executive directors (see section 6.3.B) ii). Some contracts of members of senior management were amended in 2018 in the same manner described under [6.3.D](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571) ) in respect of Ana Botín, with a pension scheme of 22% of their pensionable bases, the elimination of supplementary benefits, an increase of the insured sum of life insurance and a supplement to fixed remuneration in cash which is included under 'Other remuneration'. The following table shows the amounts of short term remuneration (immediately payable) and deferred remuneration (not linked to multi year targets) for senior management as of 31 December 2025 and 2024, excluding those of executive directors. This amount has been reduced by 29% compared to that reported in 2014 (EUR 80,792 thousand): | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Senior management remuneration | | | | | | | | | EUR thousand | | | | | | | | | | | Short-term and deferred salary remuneration | | | | | | | Year | Number of people | Fixed | Immediately receivable variable remuneration (50% in instruments) A | Deferred variable remuneration (50% in instruments) B | Pension contributions | Other remunerationC | Total | | 2025 | 15 | 19,255 | 18,359 | 8,612 | 4,910 | 6,456 | 57,592 | | 2024 | 14 | 16,466 | 14,753 | 6,639 | 4,520 | 7,153 | 49,531 | A. The amount immediately payable in 2025 was 895 thousand Santander shares (1,612 thousand Santander shares in 2024 ). B. The deferred amount for 2025 will be 416 thousand Santander shares a (725 thousand Santander shares in 2024 ). C. Includes life insurance premiums, health insurance and relocation packages, other remuneration items and RSU of PagoNxt, as members of board of directors of this entity. 10 The 2025 Pillar 3 disclosures report can be found on our corporate website. Annual report 2025357 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | In addition to the amounts reflected in the table, salary remunerations amounting to EUR 4,118 thousand were granted in the form of buyouts and sign-on awards, related to the recruitment of new members who joined this employee group during the year. The share price for 2025 variable remuneration is EUR 10.261. This table breaks down remuneration linked to multi-year targets for senior management (excluding executive directors) at 31 December 2025 and 2024, which they will only receive if they meet the terms of continued service; non-applicability of malus clauses; and long-term goals are met during deferral periods. | | | | | --- | --- | --- | | | | | | Total deferred variable remuneration linked to long-term objectives (fair value) of senior management | | | | Thousands of euros | | | | Year | Number of people | Deferred variable remuneration subject to long-term metrics A (50% in instruments) B | | 2025 | 15 | 9,043 | | 2024 | 14 | 6,971 | A. In 2025, this corresponds to the fair value of maximum annual payments for 2029, 2030 and 2031 in the tenth cycle of the plan for deferred variable remuneration linked to multi-year targets. In 2024, this corresponds to the estimated fair value of maximum annual payments for 2028 , 2029 and 2030 in the ninth cycle of the plan for deferred variable pay linked to multi-year targets. Fair value in the plan was determined on the authorization date based on the valuation report of independent expert Willis Towers Watson. Based on the plan for 2025 and success levels of similar plans at peer entities, the fair value was considered to be 70% of the value linked to long-term metrics. B. The number of shares in Santander as deferred variable pay subject to long-term metrics shown in the table above was 437 thousand shares in 2025 (762 thousand shares in Santander shares in 2024). The face value of the three aforementioned deferred amounts is EUR 12,919 thousand for 2025. The long-term goals are the same as those for executive directors. They are described in section 6.3.B) iv). Additionally, members of senior management who stepped down from their roles in 2025 consolidated salary remuneration and other remuneration for a total amount of EUR 2,905 thousand (12,303 thousand in 2024). In 2025, rights regarding variable pay subject to long-term objectives amounted to EUR 342 thousand (EUR 633 thousand rights were generated in 2024 for this collective). In 2025, the ratio of variable to fixed pay components was 134% of the total for senior managers group, well within the maximum limit of 200% set by shareholders at the AGM. | | | | --- | --- | | | | | | See note [5 'Remuneration and other benefits paid to the Bank’s directors](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1009) [and senior managers'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1009) of the Group’s 2025 consolidated financial statements for further details. | #### 6.7 Prudentially significant disclosures #### document On the remuneration committee’s recommendation, the board approves the key remuneration elements of managers or employees who, while not belonging to senior management, take on risks, carry out control functions (i.e. internal audit, risk management and compliance) or who receive global remuneration that places them in the same remuneration bracket as senior management and employees who take on risk. These are typically those whose professional activities may have an important impact on the Group's risk profile (all of these, together with the senior management and Banco Santander's board of directors form the so called 'Corporate Identified Staff' or 'Corporate Material Risk Takers') Every year, the remuneration committee reviews and, where applicable, updates Corporate Identified Staff in order to include individuals within the organization who qualify as such. The Remuneration Policies chapter in the 2025 Pillar 3 disclosures report 10 of Banco Santander explains the criteria and regulations followed to identify such staff. At the end of 2025, 1,336 Group executives (including executive directors and non-director senior managers) were considered corporate identified staff of Grupo Santander (1,246 in 2024 ), which accounts for 0.67% of the total final workforce (0.60% in 2024). Corporate Identified Staff have the same remuneration framework as executive directors (see sections [6.1 'Principles of the](#i6ecb2a0d58d04b53bfadfa2a833efaa7_565) [remuneration policy'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_565) and [6.3 'Remuneration of directors](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571) [for executive duties'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571)), except for: • Category-based deferral percentages and terms. • The possibility in 2025 of certain less senior manager categories of only having deferred variable pay subject to malus and clawback clauses. • The portion of variable remuneration paid or deferred as shares for Group executives in Brazil, Chile and Poland that can be delivered in shares or similar instruments of their own listed entities. In 2026, the board will maintain its flexibility to determine full or partial payment in shares or similar instruments of Banco Santander and its relevant subsidiaries in the proportion it deems appropriate (according to the maximum number of Banco Santander shares allocated at the general meeting and to any regulatory restrictions in each jurisdiction). The aggregate amount of variable remuneration for Corporate Identified Staff in 2025, the amounts deferred in cash and instruments, and the ratio of the variable to fixed remuneration components are explained in the remuneration policies chapter of Banco Santander’s Pillar 3 disclosures report for 2025. Annual report 2025358 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 7. Group structure and internal governance #### 7.1 Group structure We are a unique leading financial group, with all our activities organized under five global businesses: Retail & Commercial Banking (Retail); Digital Consumer Bank (Consumer); Corporate & Investment Banking (CIB); Wealth Management & Insurance (Wealth); and Payments. This enables us to make the most of our global and local scale, network and technology to enhance the service we offer our customers and to be a truly global-local organization that drives profitable growth and creates shareholder value. In turn, the Group is formed of legally independent subsidiaries that are autonomous in terms of capital and liquidity, with strong local management. This model facilitates efficient financing and limits the systemic risk of contagion when faced with adverse economic conditions, whilst enabling Banco Santander, as parent company, to discharge appropriate oversight and control of the Group as a whole. The Group has adopted an agile approach in the way we work as a key step towards becoming a global open financial services platform. This approach has been designed to make the organization more efficient and customer-focused through multidisciplinary teams across the Group, all within the existing governance framework and associated reporting lines. Therefore, all governing bodies, both at Group and local level, continue to exercise their respective functions and responsibilities in accordance with applicable legal and regulatory requirements and internal regulation while we shift towards a more collaborative and multidisciplinary way of working. #### 7.2 Internal governance system #### Group-subsidiary governance model and other #### internal regulation The Group has a Group Subsidiary Governance Model (GSGM) and good governance guidelines in place that formalizes the relationship between the corporation and its subsidiaries in those geographies where the Group is a major shareholder. We review the GSGM on a regular basis to ensure it adapts to our strategy. Any references to subsidiaries in this section are to the Group’s most prominent entities. The key features of the GSGM are: • The subsidiaries’ governing bodies must ensure their rigorous and prudent management and economic solvency while pursuing the interests of their shareholders and other stakeholders. • The subsidiaries are managed locally by teams that possess extensive knowledge on, and experience with, their customers and markets, while benefiting from the synergies and advantages of belonging to the Group. • The subsidiaries are subject to local authority regulation and supervision, although the ECB supervises the Group on a consolidated basis. • Customer funds are secured by the deposit guarantee schemes in the subsidiaries’ countries and are subject to local laws. The subsidiaries manage their capital and liquidity autonomously while the Group’s capital and liquidity are coordinated by corporate governance bodies. Intra-group risk transactions are limited, transparent and carried out under market conditions. In addition, the Group retains a controlling interest in subsidiaries listed in certain countries. Each subsidiary has its own recovery plan, limiting the contagion of risk between them and reducing systemic risk. The GSGM outlines a set of principles that regulate three types of relationships between the Group and its subsidiaries: • Presence of Grupo Santander on the subsidiary boards of directors and guidelines for board dynamics and effectiveness: the subsidiaries’ governing bodies are subject to the Group’s rules and procedures for structuring, forming and running boards of directors and their committees (audit, nomination, remuneration and risk committees), according to international standards. Guidelines regarding subsidiary board composition align with best international practices and ensure an appropriate Group presence on subsidiary boards with at least two Group nominated directors on each board. The subsidiaries are also subject to local regulations and supervisory standards. • Reporting of the CEOs / Country Heads to the Group CEO: as from January 2025 the local CEOs / Country Heads report directly to the Group CEO, instead of through Regional Heads for Europe, North America and South America. The board agreed to remove the regional management layer in line with its ongoing focus on streamlining our structure to achieve greater agility and increase our profitability through accelerating the roll out of our global business platforms and products. • Governance elements for control, management, support functions and global businesses: the relationship between Group and Subsidiaries control, management and support functions, as well as the interaction between global and local businesses. The GSGM also applies to the five global businesses. While local CEOs/Country Heads remain ultimately responsible for achieving the budget, execution of the customer and commercial strategy, and financial delivery, global business heads lead common businesses and are responsible for the implementation of the Annual report 2025359 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | global operating model and common tech stack, thereby improving local performance. All of this result in a truly global-local organization. The Group has corporate frameworks for matters considered to have a material impact on its risk profile, such as risk, capital, liquidity, compliance, financial crime compliance, technology, auditing, accounting, finance, strategy, people and culture , outsourcing, cybersecurity, data & AI, special situations management, communications and branding, and responsible banking. These corporate frameworks, which are mandatory and principle-based, specify: • how the Group should supervise and exert control over its subsidiaries; and • the Group’s involvement in subsidiaries’ decision-making (and vice versa). The internal governance system is composed of the GSGM and corporate frameworks, which the Banco Santander board approves for subsidiary governing bodies to formally adhere to them. They consider subsidiaries' local requirements and are revised every year as required to adapt to new legislation and international best practices. The corporate functions prepare internal regulatory documents that are given to subsidiaries as a reference for implementing the corporate frameworks effectively, cohesively and in compliance with applicable local laws and supervisory requirements. This approach ensures consistency throughout the Group. Every year, the functions conduct an assessment to ensure that the Group's internal regulations are embedded locally and carry out an annual certification to ensure the internal regulation under their scope is fit for purpose. We also have a policy on the governance of non-GSGM subsidiaries and investees, which enhances the governance and control system that has been applied to those companies. While the GSGM also applies to the five global businesses, they each have specific governance arrangements that ensure a robust oversight by the Group as set out in the GSGM. Each global business is responsible for defining the common business and operating model, setting the global ambition and identifying and managing the global technology platforms and product factories. #### 2025 developments A Group CDAIO was appointed in March 2025, reporting to the Executive Chair, to set the vision and direction for how we govern, leverage and scale data and AI, and ensure alignment with the Group’s business strategy, regulatory obligations and ethical standards. Subsequently, the board approved the data & AI corporate framework to establish the principles, guidelines, roles and responsibilities, processes, and governance that guide the strategy, ethical and responsible use, and management of data and AI across the Group, together with specific changes to the GSGM and appointments procedure to recognize data & AI as a global support function and key position. In addition, the board approved specific amendments to the GSGM in 2025 to recognize the agile approach in the way we work, as a key step towards becoming a global open financial services platform. We have made significant efforts to ensure a common understanding of this new way of working across the whole organization in order to become more agile, efficient and customer-focused. #### Group and subsidiary board relations The ongoing strength of the ties between the boards of directors of Banco Santander and its subsidiaries is key to effective oversight of policies, controls and corporate culture. The challenges of the current macroeconomic landscape evidence the need for effective cross-border cooperation within the Group, which our proven GSGM facilitates. The strength of our governance model is maintained through a number of coordination mechanisms that are in place between the Group and subsidiaries, as follows: #### Group nominated directors A number of Group directors and top managers are also members of the boards of our subsidiaries, which facilitates the management bodies' coordination and the strategic alignment of the local boards. #### Group and subsidiary committee relations In 2025, the audit committee and risk supervision, regulation and compliance committee Chairs attended equivalent subsidiary committee meetings. In turn, they invited their local counterparts to join the respective Banco Santander committee meetings throughout the year. This helped enhance communication and the sharing of topics of common interest and best practices between the parent company and its subsidiaries. The Chairs of the Group audit committee and risk supervision, regulation and compliance committee also organized several virtual meetings with their local counterparts, which enriched the communication among them and enabled them to share priorities and common matters of interest. Therefore, this practice will continue going forward. Finally, in 2025 we also held a risk supervision, regulation and compliance committee Chairs convention in Madrid. The aim was to foster further collaboration between the parent company and its main subsidiaries, raise awareness about global initiatives and expectations, collectively discuss topical issues and encourage networking. As on previous occasions, the event was both successful and productive, with positive feedback received from all participants. #### Coordinated induction and training plans We continued to share our training, induction and development methodology and associated content with the subsidiaries to promote best practices and drive a consistent approach on a Group-wide basis. In 2025, we scheduled training sessions for subsidiary board members covering cybersecurity, transformation, AI and our shareholder value creation strategy. #### Group and subsidiary board visits The board holds at least one session in one of the Group's core markets every year. As part of these visits, directors meet top management in the unit in order to better understand the local business. In 2025, the board of directors met in the US, where we also organized meetings with senior management, high potential employees, and customers. Annual report 2025360 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Furthermore, subsidiary boards are encouraged to hold their board meetings at our corporate centre in Boadilla del Monte (Madrid) or in Santander (Cantabria), to foster further collaboration and engagement with the corporate teams. In 2025, the board of Santander UK held specific meetings at our corporate centre. These practices will continue in 2026 and beyond. The following charts show the three levels of the GSGM, as well as the main actions to ensure an effective relationship and solid internal governance system for the Group. | | | | --- | --- | | | | | Group | Subsidiaries | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Board of directors | | | | | | | | | | Board of directors | | | | | | | | | flecha_gris.jpg | | | | Group Executive Chair A | | | | | | | | | | | | | | | | | | | | | | --- | | | | The GSGM enhances control and oversight through: Group presence on the subsidiaries' boards of directors, establishing guidelines for board and committee structure, dynamics and effectiveness. | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | Group CEO B | | CEO / Country Head | | | | | | | | | | | | | | | | | --- | | | | Reporting of the CEO / Country Heads to the Group CEO and Group executive committee. | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Control, management, support and business functions, as well as Group global businesses C | | Control, management, support and business functions, as well as local global businesses | | | | | | | | | | | | | | | --- | | | | Reporting to Group and interaction between them. | A. First executive. B. Second executive, who reports directly to the board of directors. C. Audit, risk, compliance, finance, financial accounting & control, T&O, people, culture & organization, general secretariat, marketing, communications, strategy, data & AI, as well as the five global businesses (CIB, Retail, Wealth, Consumer and Payments). | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | Best practices and talent sharing across the whole Group and between subsidiaries are key to our success . | | | | Multiple point of entry structure that has proved to be a key resilience instrument and is a result of our diversification strategy. | | | | Continuous collaboration and daily interaction between local and corporate teams. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | A common set of corporate frameworks and policies across the Group adapted to local market conditions. | | | | Synergies and economies of scale across the Group. | | | | Planning and implementation of new Group-wide and local initiatives to keep developing our management and control model. | | | | | | | | | | | | | | Annual report 2025361 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 8. Internal control over financial #### reporting (ICFR) ICFR forms part of, and takes its methodological framework and governance principles from, the Group’s Internal control systems (ICS). The ICS applies to both financial and non-financial information and is consistent with the most demanding international standards. In particular, it complies with the principles and guidelines set out in the Committee of Sponsoring Organizations of the Treadway Commission’s Internal Control – Integrated Framework, an internationally recognized internal control benchmark. #### 8.1 Control environment #### Governance and control bodies These bodies are responsible for implementing and overseeing our ICFR: • Board of directors. Approves the financial reports Banco Santander must disclose as a listed company. The board also oversees and guarantees the integrity of the Group’s internal information, control, accounting and reporting systems. • Audit committee. Assists the board of directors in overseeing the ICS and in preparing and presenting financial information. The audit committee also works with the external auditor to address matters that have a significant impact on our ICFR identified in the course of the audit, thereby facilitating the issuance of an independent opinion on the ICFR. For more details, see section [4.5 'Audit committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_535). • Risk control committee. Assists the audit committee in reviewing and overseeing the annual ICS assessment. • Corporate accounting, financial and management, and sustainability information committee. Is responsible for governing and supervising accounting, financial management and control matters. • Internal control steering meeting. Monitors the control environment continuously, as well as the ICS strategy and performance. #### Lead functions The structure of the G roup enables us to manage risk effectively and ensure that internal control functions (risk, compliance and internal audit) are independent of business functions and can perform their duties efficiently. The key functions that prepare financial information are: • People, culture & organization function. This function is responsible for setting Grupo Santander’s strategic talent agenda and for promoting the Group’s human resource-related culture policies (including on diversity and inclusion). It is also responsible for designing and implementing such policies and for managing human resources and the organizational structure. • Business and support functions. They are responsible for identifying and documenting (under their remit) the risks, tasks and controls that make up our ICFR, based on an understanding of their operations and procedures. • Financial accounting and control function. It is responsible for: (i) drawing up the Group's accounting policies and adapting them to local needs; (ii) ensuring that appropriate organizational structures are in place to carry out assigned tasks, as well as a suitable hierarchical-functional structure; (iii) using Group tools and methodologies to implement and run an ICS on the cut-off, consolidation and publication of financial information, including the supervision of the internal controls necessary to ensure that the financial information we report remains liable; and (iv) maintaining the corporate accounting and management information systems and adapting them to the specific needs of local units. • Risk and compliance functions. These functions comprise the second line of defence and are in charge of independently overseeing and challenging the risk management that the first line conducts. Within the Risk division, the internal control function sets the standards and methodology for, and oversees the implementation, monitoring and reporting of the Group’s ICS. • Internal audit function. The third line of defence in overseeing and reporting on our ICFR. It recommends corrective action and areas of improvement for the first and second lines to consider and implement. General Code of Conduct, Canal Abierto #### and training #### General Code of Conduct (GCC) Our board-approved GCC, sets out the standards of conduct that govern the actions of all Grupo Santander employees, as well as the rules of conduct relating to financial information and other matters. All employees, including directors, sign up to the GCC when they join Santander. Some are also subject to the CCSM and other codes of conduct specific to their area or business. All Santander employees have access to courses on the GCC. The compliance function also answers employees’ queries on ethics and rules in the GCC. If anyone violates the code, the people, culture & organization function adopts disciplinary measures and recommends corrective action (including work sanctions), irrespective of any related civil or criminal sanctions. Annual report 2025362 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | --- | --- | | | | | | For more details on the GCC’s core implementation mechanisms, see 'Conduct standards' in section [4.2 'Ethical conduct'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_205) in the 'Sustainability statement' chapter. | Canal Abierto Canal Abierto is Banco Santander's internal information system that enables the confidential and, if so desired, anonymous reporting of unethical conduct that could be considered illegal acts in the workplace or contrary to the law, irregularities related to sustainability matters, and violations of the GCC and acts that go against the Group’s corporate behaviours. Canal Abierto also enables the reporting of improper practices relating to accounting or auditing, breaches of internal control, or undue influence on external auditors, according to the SOx Act. It also provides a means to report suspicions of infringements of anti-money laundering and terrorism financing, corruption and bribery, and securities market laws. The board of directors is responsible for implementing Canal Abierto, while the audit committee and the risk supervision, regulation and compliance committee jointly supervise the channel. | | | | --- | --- | | | | | | For more details on the functioning of the channel and the number and type of reports received, see section [4.3 'Ethical channels'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_208) in the 'Sustainability statement' chapter. | #### Training Group employees who help prepare or analyse financial information take part in training programmes and regular refresher courses specifically designed to teach them the concepts and skills they require to discharge their duties properly. The functions that prepare our ICFR promote these programmes and courses, in collaboration with the people, culture & organization function, which is responsible for delivering and coordinating training across the Group. Training takes the form of both e-learning and on-site sessions that the people, culture & organization function monitors and oversees to guarantee that employees duly complete them and understand their contents. Training programmes and refresher courses on financial reporting in 2025 focused on: risk analysis and management; accounting and financial statement analysis; business banking and the financial environment; financial management, costs and budgeting; as well as the strengthening of mathematical skills and competencies (calculations and statistics). Over 169,000 employees from several entities and markets where Grupo Santander operates undertook the mentioned training programmes, with some 329,000 hours spent on them. Moreover, each subsidiary has its own training plan, based on Banco Santander’s. #### 8.2 Risk assessment in financial reporting Grupo Santander has a specific process to identify the companies that must be included in its scope of consolidation, which the Financial Accounting and Control division and the General Secretariat division oversee. This process enables us to assess whether Banco Santander controls an entity by being exposed or having rights to variable returns and the ability to influence the amount of those returns. It also enables an assessment of whether Banco Santander controls a structured entity in accordance with the applicable criteria. Where control exists, we include the entity in the scope of consolidation under the global integration method. In other cases, we analyse whether there is significant influence or joint control. If so, we also include the entity in the scope of consolidation and measure it using the equity method. | | | | --- | --- | | | | | | For more details on the criteria we use to determine the scope of consolidation, see section [2.b) ‘Principles of consolidation’](#i6ecb2a0d58d04b53bfadfa2a833efaa7_979), in the consolidated annual financial statements. | Entities with the greatest impact on the preparation of the consolidated financial information must use a common ICS methodology to include all relevant controls and cover all significant risks to financial reporting. Risk identification considers all the Group's activities. It covers not only risks that relate directly to the preparation of financial information, but also non-financial risks that may have an accounting or reputational impact. The Group promotes effective coordination between the ICFR and the sustainability information control system to provide an integrated view of risks and consistency between both systems. For more details on the specific ICS controls on non-financial information and sustainability, see 'Risk management and internal controls over sustainability information' in note [SN 2. 'Sustainability governance'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_223) in the 'Sustainability statement' chapter. Identifying potential risks that must be covered by the ICS is based on top management's knowledge and understanding of the business and its operations in relation to the importance and qualitative criteria associated with the type, complexity or structure of the business. Banco Santander ensures that controls are in place to cover the potential risks we identify. This includes risks of errors and fraud in financial reporting and those that cover: (i) the existence of assets, liabilities and transactions at the relevant date; (ii) timely and correct recording and proper valuation of assets, liabilities and transactions; and (iii) the correct application of accounting principles and rules, as well as appropriate breakdowns. For more details on the identification, documentation and assessment of the ICS risks and controls, see section [1.5 'Internal](#i6ecb2a0d58d04b53bfadfa2a833efaa7_805) [control system'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_805) in the 'Risk management and compliance' chapter. #### 8.3 Control activities #### Revision and approval of financial information The board of directors and the audit committee oversee the preparation, submission and integrity of the financial information required of Banco Santander and the Group. They also review compliance with regulatory requirements, the scope of consolidation and the correct application of accounting standards, ensuring that financial information remains permanently updated on our corporate website. The audit committee is responsible for reporting to the board of directors on the financial information that the Group must publish, Annual report 2025363 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | ensuring that it is prepared in accordance with the same principles and practices as the financial statements and is as equally reliable. The most significant aspects we consider when closing accounts and reviewing relevant judgements, estimates, measurements and projections are: • impairment losses on certain assets; • the assumptions used in the actuarial calculation for employment benefit liabilities and other obligations; • the useful life of tangible and intangible fixed assets; • the valuation of consolidation goodwill; • the calculation of provisions and contingent liabilities; • the fair value of certain unquoted assets and liabilities; • the recoverability of tax assets; and • the fair value of acquired identifiable assets and the liabilities assumed in business combinations. | | | | --- | --- | | | | | | For more details on ICS reporting and governance, see section [1.5 'Internal](#i6ecb2a0d58d04b53bfadfa2a833efaa7_805) [control system'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_805) in the 'Risk management and compliance' chapter. | Internal control policies and procedures for #### financial IT systems The Technology and Operations division draws up the Group’s corporate policies on IT systems that are used directly or indirectly to prepare financial statements. These systems follow special internal controls to prepare and publish financial information correctly. The internal control policies on the following aspects are of particular importance: • Updated and divulged internal policies and procedures for system security and access to applications and computer systems according to the duties assigned to a role, to make sure access rights to information are appropriate and to protect the confidentiality, availability and integrity of financial information from cyber attacks. • The methodology we use when creating, modifying and maintaining apps follows a cycle of definition, development and testing that ensures we process financial information correctly. We have special development and security controls and data access, testing, vulnerability management, and other mechanisms. For more details on cybersecurity, see section [7.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_769) ['Technological innovation: artificial intelligence, cybersecurity](#i6ecb2a0d58d04b53bfadfa2a833efaa7_769) [and fintech ecosystem'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_769) in the 'Economic and Financial Review' chapter. • We run the complete software testing cycle in a pre-production computerized environment which simulates real situations before they are rolled out. Testing includes technical and functional tests, performance tests, user-acceptance tests and pilot and prototype tests, which the entities draw up before the apps become available to end users. • Business continuity and technological contingency plans based on corporate methodology for key functions in disasters or other events that could suspend or disrupt operations, as well as highly automated back-up systems that support critical systems and require little manual intervention owing to redundant systems and communication lines, high availability systems and data back-up. Internal control policies and procedures for outsourced activities and valuation services from independent experts Grupo Santander has a corporate outsourcing and third-party agreement framework and third-party approval policies and procedures to cover outsourcing risks properly. The Group must adhere to this framework (and the models and policies that build on it), which meets the EBA's requirements for outsourcing and risk management with third parties and complies with DORA Regulation. Key processes include: • tasks to initiate, record, process, settle, report and account for transactions and asset valuations; • IT support in terms of software development, infrastructure maintenance, incident management, security and information processing; and • other material support services that are not directly related to financial reporting, such as vendor management, property management, HR management and others. Key control procedures to ensure appropriate coverage of risks in these processes are: • relationships between Group entities are formalized through detailed service level agreements; • external suppliers undergoing an approval process to ensure that the relevant risks associated with the services they provide remain within acceptable levels (according to the Group's risk appetite) and to encourage them to prove the effectiveness of their internal controls through external certifications; and • Group entities that receive the services must ensure that external service providers maintain complete and up-to-date documentation of the processes and controls associated with the services they provide, and that such controls are subject to periodic validation. Grupo Santander reviews its estimates internally according to its control model guidelines. Where certain cases require the services of a third party, it follows procedures that help confirm their expertise and independence and approve their methods and the reasonableness of any assumptions made. In particular, we have controls in place to ensure the integrity and quality of information on external suppliers of key services that could affect the financial statements. These controls are comprehensively detailed in the service level agreements that form part of the respective contracts with third parties. | | | | --- | --- | | | | | | For more details, see 'Supplier risk management' in the section [5.2. 'Operational risk management'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_868) in the 'Risk management and compliance' chapter. | Annual report 2025364 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 8.4 Information and communication #### Group accounting policies The corporate accounting, financial management and sustainability information framework sets out the principles and guidelines to prepare accounting, financial and management information that must apply to all Grupo Santander entities as a key element of their good governance. The Group's structure makes it necessary for these principles and guidelines to be common for their application across our footprint, and for each of the Group entities to have effective consolidation methods and employ homogeneous accounting policies. The framework's principles are reflected appropriately in the Group’s accounting policies. Against this backdrop, the accounting policies cover the operational aspects of the framework, by capturing and implementing the principles set out therein. Accounting policies should be understood as a complement to local financial and accounting rules. Their overarching aims are (i) for statements and financial information to be made available to management bodies, supervisors and the market to provide accurate and reliable information for decision-making in relation to the Group; and (ii) for all Group entities (due to their accounting ties to Banco Santander) to meet their legal requirements in a timely manner. Accounting policies are revised at least once a year and on the back of key regulatory amendments. Moreover, every month, the Accounting Regulation area publishes an internal bulletin on new accounting regulation and their most significant interpretations. The Accounting Regulation area of the Financial Accounting and Control division is responsible for: • setting the general framework for the treatment of the transactions that constitute Banco Santander's activity, in accordance with their economic nature and the regulations governing the financial system; • drafting up and keeping up to date the Group’s accounting policies and resolving any queries or conflicts arising from their interpretation; and • enhancing and standardizing the Group’s accounting practices. The Group entities, through their operations or accounting heads, maintain open communication with the Accounting Regulation area and the rest of the Financial Accounting and Control division, as well as other divisions when appropriate. #### Mechanisms for the preparation of financial #### information We base financial statement consolidation on technology-based tools that ensure the traceability and consistency of the accounting data that our units report, which helps minimize operational risks and enhance information quality. These tools channel the flow of information between the units and the Financial Accounting and Control division, which leads consolidation on the basis of the information provided. This process covers automated validation, reconciliation and review controls to detect incidents during consolidation and ensure the reliability of the consolidated financial information. Moreover, the Financial Accounting and Control division exercises further supervisory and analytical control, which it sets out in formal documents and reviews under set time frames. #### 8.5 Monitoring of system functioning #### 2025 ICFR monitoring activities and results Our board-approved internal audit corporate framework sets out the definition, objectives and principles that govern the function’s operations. Its mission is to provide the board of directors and senior management with independent assurance on the quality and effectiveness of internal control processes and systems, risk management (both current and emerging) and governance, thereby contributing to the protection of the Group’s value, solvency and reputation. The internal audit function reports directly to the audit committee and, at least twice a year, to the board of directors, maintaining functional independence at all times and direct access to the board when required. Internal audit assesses: • the efficiency and effectiveness of the ICFR; • compliance with applicable regulations and supervisory requirements; • the reliability and integrity of financial and operational information; and • asset integrity. Its scope of action includes: • all Group entities over which effective control is exercised; • separated assets (for example, mutual funds) managed by the entities mentioned in the previous section; and • any entity (or separated assets) not included in the above points with which the Group has entered into an express agreement to provide internal audits. This subjective scope includes our activities, businesses and processes (performed internally or through outsourcing), the organization and, where applicable, branch networks. Internal audit may also conduct audits for other investees that are not included in the preceding points when the Group has reserved this right as a shareholder, as well as on outsourced activities in accordance with the established agreements. The audit committee regularly assesses the functioning and effectiveness of the internal audit function, as well as the performance of its head, ensuring that it has the appropriate resources. For more details, see section [4.5 'Audit committee](#i6ecb2a0d58d04b53bfadfa2a833efaa7_535) [activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_535). As at 2025 year-end, the Internal Audit division had 1,272 employees, all exclusively dedicated to this service. Of these, 304 were based at the Corporate Centre and 968 in the local units located in the Group's core markets. The internal audit function prepares an annual audit plan based on its own risk assessment, which determines and prioritizes the Annual report 2025365 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | reviews to be carried out during the year. This plan constitutes the framework for the execution of audit activities. At its meeting on 20 February 2025, the audit committee gave the green light to the internal audit plan for 2025, which the board of directors subsequently approved at its meeting on 25 February 2025. Reviews may give rise to recommendations, which we prioritize according to their relative importance and are subject to ongoing follow-up until their full implementation. The internal audit function reports on the ICFR have mainly aimed to: • verify compliance with the provisions contained in sections 302, 404, 406, 407 and 806 of the SOx Act; • check corporate governance with regard to information relating to the ICFR, including risk culture; • review the functions performed by the internal control departments and by other departments, areas and divisions that work to ensure compliance with the SOx Act; • make sure the supporting documentation relating to the SOx Act is up to date; • confirm the effectiveness of a sample of controls based on an internal audit risk assessment methodology; • assess the accuracy of the unit's certifications, especially their consistency with respect to the observations and recommendations made by internal audit, the external auditors of the annual accounts and supervisors; and • ratify the implementation of recommendations made in the audit plan. In 2025, the audit committee and the board of directors were regularly informed of the internal audit function's work in accordance with its annual plan, as well as of other related matters. For more details, see section [4.5 'Audit committee](#i6ecb2a0d58d04b53bfadfa2a833efaa7_535) [activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_535). #### Detection and management of deficiencies As part of its remit to supervise financial reporting and ICS, the audit committee is responsible for maintaining continuous dialogue with the external auditor regarding any significant weaknesses detected in the audit. It also assesses the results of the work carried out by internal audit and, where appropriate, adopts the necessary measures to address any deficiencies identified in the financial information that could affect the reliability and accuracy of the annual accounts. For this purpose, it may liaise with the various Group areas involved to obtain the necessary information and clarification. It also assesses the potential impact of any error identified in the financial information. During 2025, the audit committee was informed of the results of the assessment and certification of the ICS corresponding to the 2024 financial year. No material weaknesses or significant deficiencies were identified in the ICFR at Group level. For more details, see section [4.5 'Audit committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_535). #### 8.6 External auditor report The external auditor issued an independent reasonable assurance report on the design and effectiveness of our ICFR, which is included on the following pages. Annual report 2025366 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | ![Informe Aseguramiento Razonable SCIIF Grupo Santander 2025_ingles_Página_1.jpg]() Annual report 2025367 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | ![Informe Aseguramiento Razonable SCIIF Grupo Santander 2025_ingles_Página_2.jpg]() Annual report 2025368 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | ![Informe Aseguramiento Razonable SCIIF Grupo Santander 2025_ingles_Página_3.jpg]() Annual report 2025369 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 9. Other corporate governance information Since 12 June 2018, CNMV allows the annual corporate governance and directors’ remuneration reports Spanish listed companies must submit to be drafted in a free format, which is what we selected for our corporate governance and directors’ remuneration reports since 2018. The CNMV requires any issuer opting for a free format to provide certain information in a format it dictates so that it can be aggregated for statistical purposes. This information is included (i) for corporate governance matters, under section [9.2 'Statistical](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) [information on corporate governance required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625), which also covers the section 'Degree of compliance with corporate governance recommendations', and (ii) for remuneration matters, under section [9.5 'Statistical information on remuneration required](#i6ecb2a0d58d04b53bfadfa2a833efaa7_634) [by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_634). Some shareholders or other stakeholders may be used to the formats of the corporate governance and directors' remuneration reports set the by the CNMV. Therefore, each section under this format in sections  [9.1 'Reconciliation with the CNMV’s corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_622) [governance report model'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_622) and [9.4 'Reconciliation to the CNMV’s](#i6ecb2a0d58d04b53bfadfa2a833efaa7_631) [remuneration report model'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_631) include a cross reference indicating where this information may be found in the 2025 annual corporate governance report (drafted in a free format) and elsewhere in this annual report. In section [9.3 'References on compliance with recommendations of](#i6ecb2a0d58d04b53bfadfa2a833efaa7_628) [Spain's Corporate Governance Code'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_628), we have included a chart with cross-references showing where the information supporting each response can be found in this corporate governance chapter and elsewhere in the annual report, evidencing the compliance indicated in the above-mentioned section ‘Degree of compliance with corporate governance recommendations’. #### 9.1 Reconciliation with the CNMV’s corporate governance report model | | | | | --- | --- | --- | | | | | | Section in the CNMV model | Included in statistical report | Comments | | A. OWNERSHIP STRUCTURE | | | | A.1 | Yes | See sections [2.1 'Share capital'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_469), [3.2 'Shareholder rights'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_493) and [9.2 'Statistical information on corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) [governance required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) . | | A.2 | Yes | See sections [2.3 'Significant shareholders'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_475) and [9.2 'Statistical information on corporate governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) [required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) . | | A.3 | Yes | See ['Tenure and equity ownership'](#i3469a4b05f164a2d92462c398a9ec6eb_0-0-20-12-3384596) in section 4.2 and section [9.2 'Statistical information on corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) [governance required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) . | | A.4 | No | See section [2.3 'Significant shareholders'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_475) where we explain there are no significant shareholders on their own account so this section does not apply. | | A.5 | No | See section [2.3 'Significant shareholders'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_475) where we explain there are no significant shareholders on their own account so this section does not apply. | | A.6 | No | See section [2.3 'Significant shareholders'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_475) where we explain there are no significant shareholders on their own account so this section does not apply. | | A.7 | Yes | See sections [2.4 'Shareholders' agreements'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_478) and [9.2 'Statistical information on corporate governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) [required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625). | | A.8 | Yes | Not applicable. See section [9.2 'Statistical information on corporate governance required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625). | | A.9 | Yes | See section [2.5 'Treasury shares'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_481) and [9.2 'Statistical information on corporate governance required by](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) [the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) . | | A.10 | No | See sections [2.2 'Authority to increase capital'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_472) and [2.5 'Treasury shares'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_481). | | A.11 | Yes | See section [9.2 'Statistical information on corporate governance as required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625). | | A.12 | No | See section ['Voting rights and unrestricted share transfers'](#i9ecadc1fbc9f4691a7c73ad08498072a_9884) in section 3.2. | | A.13 | No | See section [3.2 'Shareholder rights'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_493). | | A.14 | Yes | See sections [2.6 'Stock market information'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_484) and [9.2 'Statistical information on corporate governance as](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) [required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) . | Annual report 2025370 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | Section in the CNMV model | Included in statistical report | Comments | | B. GENERAL SHAREHOLDERS’ MEETING | | | | B.1 | No | See ['Quorum and majorities for passing resolutions at general meeting'](#i9ecadc1fbc9f4691a7c73ad08498072a_9886) in section 3.2. | | B.2 | No | See ['Quorum and majorities for passing resolutions at general meeting'](#i9ecadc1fbc9f4691a7c73ad08498072a_9886) in section 3.2. | | B.3 | No | See ['Rules for amending our Bylaws'](#i9ecadc1fbc9f4691a7c73ad08498072a_9881) in section 3.2. | | B.4 | Yes | See ['Quorum'](#if6ea1cf1d4fb49498520f69d15d236a7_2197) in section 3.4, in relation to financial year 2025, and section [9.2 'Statistical information on](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) [corporate governance required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625), in relation to the financial 2023, 2024 and 2025 year. | | B.5 | Yes | See ['Approved resolutions and voting results'](#if6ea1cf1d4fb49498520f69d15d236a7_2195) in section 3.4. | | B.6 | Yes | See ['Participation at general meetings'](#i9ecadc1fbc9f4691a7c73ad08498072a_9888) in section 3.2 and section [9.2 'Statistical information on](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) [corporate governance required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) . | | B.7 | No | See ['Quorum and majorities for passing resolutions at general meeting'](#i9ecadc1fbc9f4691a7c73ad08498072a_9886) in section 3.2. | | B.8 | No | See ['Corporate website'](#i0a320c1a30f14f91aecc68d4b8db9d34_8310) in section 3.1. | | C. MANAGEMENT STRUCTURE | | | | C.1 Board of directors | | | | C.1.1 | Yes | See ['Size'](#i54aff41f6ba94eecbadbaed58547f245_2700) in section 4.2 and section [3.4 '2025 AGM'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_499). | | C.1.2 | Yes | See sections [1.1 'Our board of directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_448), [4.1 'Our directors](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) , ['Tenure and equity ownership'](#i3469a4b05f164a2d92462c398a9ec6eb_0-0-20-12-3384596) in section 4.2, and section [9.2 'Statistical information on corporate governance required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) . | | C.1.3 | Yes | See sections [2.4 'Shareholders' agreements'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_478), [4.1 'Our directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) , ['Composition by director type'](#i54aff41f6ba94eecbadbaed58547f245_2701) in section 4.2, section [4.6 'Nomination committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538) and section [9.2 'Statistical information on](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) [corporate governance required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625). | | C.1.4 | Yes | See ['Board skills and diversity matrix'](#icdb43ba59e2c46729bf8a7c4c572957a_2812) in section 4.2, in relation to financial year 2025, and section [9.2](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) ['Statistical information on corporate governance required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) , in relation to the remaining financial years. | | C.1.5 | No | See ['Diversity and skills'](#i672147cb99e34e76865310aaffd8149e_5525) and ['Board skills and diversity matrix'](#icdb43ba59e2c46729bf8a7c4c572957a_1368) in section 4.2 and section [4.6 'Nomination](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538) [committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538). | | C.1.6 | No | See section [1.3 'Achievement of our 2025 priorities'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_460), ['Diversity and skills'](#i672147cb99e34e76865310aaffd8149e_5525) in section 4.2 and section [4.6](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538) ['Nomination committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538) and also section [3.1.3 'Inclusive culture'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_166) in 'Sustainability statement'  chapter. | | C.1.7 | No | See section [4.6 'Nomination committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538). | | C.1.8 | No | Not applicable, since there are no proprietary directors. See ['Composition by type of director'](#i54aff41f6ba94eecbadbaed58547f245_2701) in section 4.2. | | C.1.9 | No | See ['Functions'](#ie2d0a06a9cc543a3ba705ae35b302e42_4419) in section 4.4. | | C.1.10 | No | See section [4.1 'Our directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508). | | C.1.11 | Yes | See sections [4.1 'Our directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) and [9.2 'Statistical information on corporate governance required by the](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) [CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) . | | C.1.12 | Yes | See ['Attendance at board and committee meetings and dedication to the performance of duties'](#ifb2b99624daa4646a71a5fe829ff7983_75645) in section 4.3 and section [9.2 'Statistical information on corporate governance required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625). | | C.1.13 | Yes | See sections [6. 'Remuneration'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_562) and [9.2 'Statistical information on corporate governance required by the](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) [CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) . A dditionally, see note ['5. Remuneration and other benefits paid to the Bank’s directors and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1009) [senior managers'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1009) in the 'Notes to the consolidated financial statements'. | | C.1.14 | Yes | See sections [5. 'Senior management team'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_559) , [6.6 '.Remuneration of non-director members of senior](#i6ecb2a0d58d04b53bfadfa2a833efaa7_580) [management'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_580) and [9.2 'Statistical information on corporate governance required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) . Additionally, see note ['5. Remuneration and other benefits paid to the Bank’s directors and senior](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1009) [managers'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1009) in the ' [Notes to the consolidated financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) '. | | C.1.15 | Yes | See ['Board regulation'](#ifb2b99624daa4646a71a5fe829ff7983_78578) in section 4.3. | | C.1.16 | No | See ['Election, appointment, re-election and succession of directors'](#icd394c0decc149fbb6ec8e814f8464ca_6275) in section 4.2. | | C.1.17 | No | See 'Effectiveness' in section 1.1 and ['Attendance at board and committee meetings and dedication to](#ifb2b99624daa4646a71a5fe829ff7983_75645) [the performance of duties'](#ifb2b99624daa4646a71a5fe829ff7983_75645) and ['Board effectiveness review in 2025'](#ifb2b99624daa4646a71a5fe829ff7983_75730)' in section 4.3. | | C.1.18 | No | Not applicable as it was not carried out with the help of an independent external advisor. See 'Effectiveness' in section 1.1 and ['Attendance at board and committee meetings and dedication to the](#ifb2b99624daa4646a71a5fe829ff7983_75645) [performance of duties'](#ifb2b99624daa4646a71a5fe829ff7983_75645) and ['Board effectiveness review in 2025'](#ifb2b99624daa4646a71a5fe829ff7983_75730) in section 4.3. | | C.1.19 | No | See ['Election, appointment, re-election and succession of directors'](#icd394c0decc149fbb6ec8e814f8464ca_6275) in section 4.2. | | C.1.20 | No | See ['Board operation'](#ifb2b99624daa4646a71a5fe829ff7983_26386) in section 4.3. | | C.1.21 | Yes | Not applicable since there are no specific requirements, other than those applying to directors generally, to be appointed chair. See section [9.2 'Statistical information on corporate governance required by the](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) [CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) . | | C.1.22 | No | See ['Diversity and skills'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_517) in section 4.2. | | C.1.23 | Yes | See ['Election, appointment, re-election and succession of directors'](#icd394c0decc149fbb6ec8e814f8464ca_6275) in section 4.2 and section [9.2](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) ['Statistical information on corporate governance required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) . | | C.1.24 | No | See ['Board operation'](#ifb2b99624daa4646a71a5fe829ff7983_26386) in section 4.3. | Annual report 2025371 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | Section in the CNMV model | Included in statistical report | Comments | | C.1.25 | Yes | See ['Lead Independent Director'](#ifb2b99624daa4646a71a5fe829ff7983_26391) and ['Attendance at board and committee meetings and dedication to](#ifb2b99624daa4646a71a5fe829ff7983_75645) [the performance of duties'](#ifb2b99624daa4646a71a5fe829ff7983_75645) in section 4.3, 'Duties and activities in 2025' in sections [4.4 'Executive](#i6ecb2a0d58d04b53bfadfa2a833efaa7_532) [committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_532),[4.5 'Audit committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_535), [4.6 'Nomination committee](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538) [activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538), [4.7 'Remuneration committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_541), [4.8 'Risk supervision, regulation and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_544) [compliance committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_544), [4.9 'Responsible banking, sustainability and culture](#i6ecb2a0d58d04b53bfadfa2a833efaa7_547) [committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_547) and [4.10 'Innovation and technology committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_550) and section [9.2 'Statistical information on corporate governance required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625). | | C.1.26 | Yes | See ['Attendance at board and committee meetings and dedication to the performance of duties'](#ifb2b99624daa4646a71a5fe829ff7983_75645) in section 4.3, [4.6 'Nomination committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538), and section [9.2 'Statistical information on](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) [corporate governance required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) . | | C.1.27 | Yes | See section [9.2 'Statistical information on corporate governance required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625). | | C.1.28 | No | See sections [4.5 'Audit committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_535) and [8.4 'Information and communication'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_607). | | C.1.29 | Yes | See section [4.1 'Our directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508), ['Secretary of the board'](#ifb2b99624daa4646a71a5fe829ff7983_79111) in section 4.3 and section [9.2 'Statistical](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) [information on corporate governance as required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) . | | C.1.30 | No | See section [3.1 'Shareholder communication and engagement'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_490) and ['External auditor independence'](#i6eaabfe1ee4e4a369b090fef27080d41_9-0-1-6-3384596) in section 4.5. | | C.1.31 | Yes | See ['Re-election of the auditor'](#i6eaabfe1ee4e4a369b090fef27080d41_24-0-1-1-3384596) in section 4.5 and section [9.2 'Statistical information on corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) [governance required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625). | | C.1.32 | Yes | In accordance with the CNMV’s instructions, see ['External auditor independence'](#i6eaabfe1ee4e4a369b090fef27080d41_9-0-1-6-3384596) in section 4.5 and sub- section C.1.32 of section [9.2 'Statistical information on corporate governance required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) . Per the CNMV’s instructions on preparing annual reports on corporate governance, sub-section C.1.32 provides the fee ratios of non-audit services to total audit services, with these differences in the ratio set out in Regulation (EU) No 537/2014 that is included in section [4.5 'Audit committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_535): (a) the ratios in sub-section C.1.32 have two perimeters to the one established by Regulation (EU) No 537/2014: fees for the approved services to be performed by PricewaterhouseCoopers Auditores, S.L. (PwC) for Banco Santander and fees for the approved services to be performed by PwC and other firms in its network for all other Grupo Santander entities, in and outside Spain; and (b) the ratios' denominator is the fees amount for audit services in 2025 and not the average fee value from the past three consecutive years that Regulation (EU) No 537/2014 dictates. | | C.1.33 | Yes | See section [9.2 'Statistical information on corporate governance required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625). | | C.1.34 | Yes | See section [9.2 'Statistical information on corporate governance required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625). | | C.1.35 | Yes | See ['Board operation'](#ifb2b99624daa4646a71a5fe829ff7983_26386) and ['Committee operation'](#ifb2b99624daa4646a71a5fe829ff7983_26387) in section 4.3, and section [9.2 'Statistical information](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625) [on corporate governance required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625). | | C.1.36 | No | See ['Election, appointment, re-election and succession of directors'](#icd394c0decc149fbb6ec8e814f8464ca_6275) in section 4.2. | | C.1.37 | No | Not applicable. | | C.1.38 | No | Not applicable. | | C.1.39 | Yes | See sections [6.4 'Directors' remuneration policy for 2026, 2027 and 2028'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_574), [6.7 'Prudentially significant](#i6ecb2a0d58d04b53bfadfa2a833efaa7_583) [disclosures document'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_583) and [9.2 'Statistical information on corporate governance required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625). | | C.2 Board committees | | | | C.2.1 | Yes | See ['Board committees'](#ifb2b99624daa4646a71a5fe829ff7983_75873) and ['Committee operation'](#ifb2b99624daa4646a71a5fe829ff7983_26387) in section 4.3, 'Duties and activities in 2025' in sections [4.4 'Executive committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_532),[4.5 'Audit committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_535), [4.6](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538) ['Nomination committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538), [4.7 'Remuneration committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_541), [4.8 'Risk](#i6ecb2a0d58d04b53bfadfa2a833efaa7_544) [supervision, regulation and compliance committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_544), [4.9 'Responsible banking,](#i6ecb2a0d58d04b53bfadfa2a833efaa7_547) [sustainability and culture committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_547), [4.10 'Innovation and technology committee](#i6ecb2a0d58d04b53bfadfa2a833efaa7_550) [activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_550)and [9.2 'Statistical information on corporate governance required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625). | | C.2.2 | Yes | See section [9.2 'Statistical information on corporate governance required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625). | | C.2.3 | No | See ['Board regulation'](#ifb2b99624daa4646a71a5fe829ff7983_75872) and ['Board committees'](#ifb2b99624daa4646a71a5fe829ff7983_26392), ['Committee operation'](#ifb2b99624daa4646a71a5fe829ff7983_26387) in section 4.3 and sections [4.4](#i6ecb2a0d58d04b53bfadfa2a833efaa7_532) ['Executive committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_532), [4.5 'Audit committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_535), [4.6 'Nomination](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538) [committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538), [4.7 'Remuneration committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_541), [4.8 'Risk supervision,](#i6ecb2a0d58d04b53bfadfa2a833efaa7_544) [regulation and compliance committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_544), [4.9 'Responsible banking, sustainability and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_547) [culture committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_547) and [4.10 'Innovation and technology committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_550) . | | D. RELATED PARTY AND INTRAGROUP TRANSACTIONS | | | | D.1 | No | See ['Related-party transactions'](#i075e886f0d8442048a3d644b285b6a1f_9837) in section 4.12. | | D.2 | Yes | Not applicable. See ['Related-party transactions'](#i075e886f0d8442048a3d644b285b6a1f_9837) in section 4.12. | | D.3 | Yes | Not applicable. See ['Related-party transactions'](#i075e886f0d8442048a3d644b285b6a1f_9837) in section 4.12. | | D.4 | Yes | See section [9.2 'Statistical information on corporate governance required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_625). | | D.5 | Yes | Not applicable. See ['Related-party transactions'](#i075e886f0d8442048a3d644b285b6a1f_9837) in section 4.12. | | D.6 | No | See ['Other conflicts of interest'](#i075e886f0d8442048a3d644b285b6a1f_9838) in section 4.12. | | D.7 | No | Not applicable. See section [2.3 'Significant shareholders'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_475) and ['Other conflicts of interest'](#i075e886f0d8442048a3d644b285b6a1f_9838) in section 4.12. | | E. CONTROL AND RISK MANAGEMENT SYSTEMS | | | | E.1 | No | See chapter ['Risk management and compliance'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781), in particular section [1. 'Risk management and control](#i6ecb2a0d58d04b53bfadfa2a833efaa7_790) [model'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_790) and sections [1.2 'Materiality assessment'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_67), [2.3 'Embedding ESG factors in risk management'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_109) and [4.2.2. 'Responsible taxation'](#ifdb1f1325f604b48ba5735b8bba7b936_13176) in 'Sustainability statement' chapter. | Annual report 2025372 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | Section in the CNMV model | Included in statistical report | Comments | | E.2 | No | See note [54 'Risk management'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1243) to the '[Notes to the consolidated financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) ', section [1.3 'Risk](#i6ecb2a0d58d04b53bfadfa2a833efaa7_799) [and compliance governance'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_799) in the 'Risk management and compliance' chapter. See also sections [1.2](#i6ecb2a0d58d04b53bfadfa2a833efaa7_67) ['Materiality assessment'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_67), [1.4 'Sustainability governance'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_70) and [4.2.2.'Responsible taxation'](#ifdb1f1325f604b48ba5735b8bba7b936_13176) in 'Sustainability statement' chapter. | | E.3 | No | See sections [1.2 'Key risk types'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_796), [2. 'Credit risk'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_808) , [3. 'Market, structural and liquidity risk'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_823), [4. 'Capital risk'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_850) , [5. 'Operational risk'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_862) , [6. 'Compliance risk'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_874) , [7. 'Model risk'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_883) and [8. 'Strategic risk'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_892) in 'Risk management and compliance' chapter. See also section [2.3 'Embedding ESG factors in risk management'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_109) in 'Sustainability statement' chapter and, for our capital needs, see section [4.5 'Capital management and adequacy.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_685) [Solvency ratios'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_685) of 'Economic and financial review' chapter. | | E.4 | No | See section [1.4. 'Risk management processes and tools'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_802) in the 'Risk management and compliance' chapter and sections [1.2 'Materiality assessment'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_67), [2.3 'Embedding ESG factors in risk management'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_109) and [4.2.2. 'Responsible taxation'](#ifdb1f1325f604b48ba5735b8bba7b936_13176) in 'Sustainability statement' chapter. | | E.5 | No | See sections [2. 'Credit risk'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_808), [3. 'Market, structural and liquidity risk'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_823) , [4. 'Capital risk'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_850) , [5. 'Operational risk'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_862) , [6 'Compliance risk'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_874) , [7.'Model risk'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_883) and [8. 'Strategic risk'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_892) in the 'Risk management' chapter. Additionally, see note [25e)](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1105) in the '[Notes to the consolidated financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) '. | | E.6 | No | See sections [1. 'Risk management and control model'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_790), [2. 'Credit risk'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_808), [3. 'Market, structural and liquidity](#i6ecb2a0d58d04b53bfadfa2a833efaa7_823) [risk'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_823) , [4. 'Capital risk'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_850), [5. 'Operational risk'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_862) , [6. 'Compliance risk'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_874), [7. 'Model risk'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_883) and [8. 'Strategic risk'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_892) in 'Risk management' and compliance chapter. See also [1.4 'Sustainability governance'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_70) and [2.3](#i6ecb2a0d58d04b53bfadfa2a833efaa7_109) ['Embedding ESG factors in risk management'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_109) in 'Sustainability statement' chapter. | | F. ICFRS | | | | F.1 | No | See section [8.1 'Control environment'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_598). | | F.2 | No | See section [8.2 'Risk assessment in financial reporting'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_601). | | F.3 | No | See section [8.3 'Control activities'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_604). | | F.4 | No | See section [8.4 'Information and communication'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_607). | | F.5 | No | See section [8.5 'Monitoring of system functioning'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_610). | | F.6 | No | Not applicable. | | F7 | No | See section [8.6 'External auditor report'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_613). | | G. DEGREE OF COMPLIANCE WITH CORPORATE GOVERNANCE RECOMMENDATIONS | | | | G | Yes | See ['G. Degree of compliance with the corporate governance recommendations'](#if0db84c6cff845e398b792cbffdb51fc_50249) in section 9.2 and section [9.3 'References on compliance with recommendations of Spain's Corporate Governance Code'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_628). | | H. OTHER INFORMATION OF INTEREST | | | | H | No | • See ['Board regulation'](#ifb2b99624daa4646a71a5fe829ff7983_75872) in section 4.3, as well as section [1.4 'Sustainability governance'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_70) in the 'Sustainability statement' ' chapter. • Banco Santander also complies with the Polish Code of Best Practices, except in areas where regulation is different in Spain and Poland. • In addition, see sections [1.4 'Sustainability governance'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_70) and [4. 'Business conduct (Governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199) [information)'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_199) in the 'Sustainability statement' chapter. • Banco Santander has voluntarily signed up to the Code of Best Tax Practices in Spain, see section [4.2.2. 'Responsible taxation'](#ifdb1f1325f604b48ba5735b8bba7b936_13176) in the 'Sustainability statement' chapter and note [27g)](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1123) of the '[Notes to](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [the consolidated financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946)'. Banco Santander also voluntarily signed up to the Code of Good Practices for the viable restructuring of debts secured by mortgages on primary residences and the Code of Good Practices for mortgage debtors at risk of vulnerability, see note ['54 Risk](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1243) [Management'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1243) to the ' [Notes to the consolidated financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) '. | Annual report 2025373 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 9.2 Statistical information on corporate governance required by the CNMV Unless otherwise indicated all data as of 31 December 2025. #### A. OWNERSHIP STRUCTURE A.1 Complete the following table on share capital and the attributed voting rights, including those corresponding to shares with a loyalty vote as of the closing date of the year, where appropriate: Indicate whether company Bylaws contain the provision of double loyalty voting: Yes o  No þ | | | | | | --- | --- | --- | --- | | | | | | | Date of last modification | Share capital (euros) | Number of shares | Number of voting rights | | 30/12/2025 | 7,344,659,751 | 14,689,319,502 | 14,689,319,502 | Indicate whether different types of shares exist with different associated rights: Yes o   No þ A.2 List the direct and indirect holders of significant ownership interests at year-end, including directors with a significant shareholding: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | % of voting rights attributed to shares | | | % of voting rights through financial instruments | | Total % of voting rights | | Name or corporate name of shareholder | Direct | Indirect | | Direct | Indirect | | BlackRock Inc. | 0.00 | 6.85 | | 0.00 | 0.01 | 6.86 | Details of the indirect shares: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Name or corporate name of the indirect shareholder | Name or corporate name of the direct shareholder | % of voting rights attributed to shares | % of voting rights through financial instruments | Total % of voting rights | | BlackRock Inc. | Subsidiaries of BlackRock Inc. | 6.85 | 0.01 | 6.86 | A.3 Give details of the participation at the close of the fiscal year of the members of the board of directors who are holders of voting rights attributed to shares of the company or through financial instruments, whatever the percentage, excluding the directors who have been identified in Section A.2 above: | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Name or corporate name of director | % of voting rights attributed to shares (including loyalty votes) | | | % of voting rights through financial instruments | | Total % of voting rights | From the total % of voting rights attributed to the shares, indicate, where appropriate, the % of the additional votes attributed corresponding to the shares with a loyalty vote | | | Direct | Indirect | | Direct | Indirect | Direct | Indirect | | Ana Botín-Sanz de Sautuola y O’Shea | 0.02 | 0.21 | | 0.00 | 0.00 | 0.23 | 0.00 | 0.00 | | Héctor Grisi Checa | 0.02 | 0.00 | | 0.00 | 0.00 | 0.02 | 0.00 | 0.00 | | Glenn H. Hutchins | 0.01 | 0.00 | | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 | | José Antonio Álvarez Álvarez | 0.02 | 0.00 | | 0.00 | 0.00 | 0.02 | 0.00 | 0.00 | | Homaira Akbari | 0.00 | 0.00 | | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | | Juan Carlos Barrabés Cónsul | 0.00 | 0.00 | | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | | Javier Botín-Sanz de Sautuola y O’Shea | 0.04 | 0.17 | | 0.00 | 0.00 | 0.21 | 0.00 | 0.00 | | Sol Daurella Comadrán | 0.00 | 0.00 | | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | | Henrique de Castro | 0.00 | 0.00 | | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | | Germán de la Fuente Escamilla | 0.00 | 0.00 | | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | | Gina Díez Barroso Azcárraga | 0.00 | 0.00 | | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | | Luis Isasi Fernández de Bobadilla | 0.00 | 0.00 | | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | | Belén Romana García | 0.00 | 0.00 | | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | | Pamela Walkden | 0.00 | 0.00 | | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | | Antonio Francesco Weiss | 0.00 | 0.00 | | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | | % total voting rights held by the board of directors | | | | | | 0.49 | | | | % total voting rights represented on the board of directors | | | | | | 0.84 | | | Annual report 2025374 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Details of the indirect holding: | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Name or corporate name of director | Name or corporate name of direct owner | % of voting rights attributed to shares | % of voting rights through financial instruments | Total % of voting rights | From the total % of voting rights attributed to the shares, indicate, where appropriate, the % of the additional votes attributed corresponding to the shares with a loyalty vote | | — | — | — | — | — | — | A.7 Indicate whether the company has been notified of any shareholders’ agreements that may affect it, in accordance with the provisions of Articles 530 and 531 of the Spanish Companies Act (LSC). If so, provide a brief description and list the shareholders bound by the agreement, as applicable: Yes þ   No o | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Parties to the shareholders’ agreement | % of share capital affected | | Brief description of agreement | Expiry date, if applicable | | Javier Botín-Sanz de Sautuola y O’Shea (directly and indirectly through Agropecuaria El Castaño, S.L.U. and Agropecuaria El Castaño Ibérica, S.L.U.) Emilio Botín-Sanz de Sautuola y O’Shea, Puente San Miguel, S.L.U. (directly and through Puente San Miguel DB, S.L.U., Puente San Miguel HB, S.L.U., Puente San Miguel LB, S.L.U. and Puente San Miguel EB, S.L.U.) Ana Botín-Sanz de Sautuola y O’Shea, CRONJE, S.L.U. Nueva Azil, S.L.U. (through Nueva Azil Horizonte, S.L.U.) Carmen Botín-Sanz de Sautuola y O’Shea Paloma Botín-Sanz de Sautuola y O’Shea Bright Sky 2012, S.L.U. (through Alina 38, S.L.U.) | 0.75 | | Transfer restrictions and syndication of voting rights as described under section [2.4 'Shareholders’ agreements'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_478) of the 'Corporate governance' chapter in the annual report. The communications to CNMV relating to this shareholders' agreement can be found in material facts with entry numbers 64179, 171949, 177432, 194069, 211556, 218392, 223703, 226968 and 285567 filed in CNMV on 17 February 2006, 3 August 2012, 19 November 2012, 17 October, 2013, 3 October 2014, 6 February 2015, 29 May 2015, 29 July 2015 and 31 December 2019, respectively. | 01/01/2056 | Indicate whether the company is aware of the existence of any concerted actions among its shareholders. If so, give a brief description as applicable: Yes þ  No o | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Participants in the concerted action | % of share capital affected | | Brief description of concerted action | Expiry date, if applicable | | Javier Botín-Sanz de Sautuola y O’Shea (directly and indirectly through Agropecuaria El Castaño, S.L.U. and Agropecuaria El Castaño Ibérica, S.L.U.) Emilio Botín-Sanz de Sautuola y O’Shea, Puente San Miguel, S.L.U. (directly and through Puente San Miguel DB, S.L.U., Puente San Miguel HB, S.L.U., Puente San Miguel LB, S.L.U. and Puente San Miguel EB, S.L.U.) Ana Botín-Sanz de Sautuola y O’Shea, CRONJE, S.L.U. Nueva Azil, S.L.U. (through Nueva Azil Horizonte, S.L.U.) Carmen Botín-Sanz de Sautuola y O’Shea Paloma Botín-Sanz de Sautuola y O’Shea Bright Sky 2012, S.L.U. (through Alina 38, S.L.U.) | 0.75 | | Transfer restrictions and syndication of voting rights as described under section [2.4 'Shareholders’ agreements'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_478) of the 'Corporate governance' chapter in the annual report. The communications to CNMV relating to this shareholders' agreement can be found in material facts with entry numbers 64179, 171949, 177432, 194069, 211556, 218392, 223703, 226968 and 285567 filed in CNMV on 17 February 2006, 3 August 2012, 19 November 2012, 17 October, 2013, 3 October 2014, 6 February 2015, 29 May 2015, 29 July 2015 and 31 December 2019, respectively. | 01/01/2056 | A.8 Indicate whether any individual or entity currently exercises control or could exercise control over the company in accordance with article 5 of the Spanish Securities Market Act. If so, identify them: Yes o  No þ Annual report 2025375 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | A.9 Complete the following tables on the company’s treasury shares: At year end: | | | | | --- | --- | --- | | | | | | Number of shares held directly | Number of shares held indirectly (\*) | % of total share capital | | 0 | 11,077,291 | 0.08% | (\*) Through: | | | | --- | --- | | | | | Name or corporate name of the direct shareholder | Number of shares held directly | | Pereda Gestión, S.A. | 9,750,000 | | Banco Santander Argentina, S.A. | 444,527 | | Banco Santander México, S.A. | 882,764 | | Total: | 11,077,291 | A.11 Estimated free float: | | | | --- | --- | | | | | | % | | Estimated free float | 91.73 | A.14 Indicate whether the company has issued securities not traded in a regulated market of the European Union. Yes þ  No o #### B. GENERAL SHAREHOLDERS' MEETING B.4 Indicate the attendance figures for the general shareholders’ meetings held during the financial year to which this report relates and in the two preceding financial years: | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | Attendance data | | | | | | | | | % remote voting | | | | Date of General Meeting | % attending in person | % by proxy | Electronic means | Other | Total | | 31/03/2023 | 0.72 | 64.20 | 2.22 | 0.42 | 67.56 | | Of which free float: | 0.06 | 63.73 | 2.22 | 0.42 | 66.43 | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | Attendance data | | | | | | | | | % remote voting | | | | Date of General Meeting | % attending in person | % by proxy | Electronic means | Other | Total | | 22/03/2024 | 0.82 | 62.48 | 2.83 | 0.52 | 66.65 | | Of which free float: | 0.08 | 61.99 | 2.83 | 0.52 | 65.42 | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | Attendance data | | | | | | | | | % remote voting | | | | Date of General Meeting | % attending in person | % by proxy | Electronic means | Other | Total | | 04/04/2025 | 0.80 | 64.59 | 2.57 | 0.55 | 68.51 | | Of which free float: | 0.02 | 64.08 | 2.57 | 0.55 | 67.22 | | | | --- | | | | Observations | | Our 2025 AGM was held in a completely virtual format, with no physical attendance by shareholders. However, as there is no specific column for the inclusion of the % attending virtually, this information has been included in the column % attending in person. | B.5 Indicate whether in the general shareholders’ meetings held during the financial year to which this report relates there has been any matter submitted to them which has not been approved by the shareholders: Yes o   No þ B.6 Indicate whether the Bylaws require a minimum holding of shares to attend to or to vote remotely in the general shareholders’ meeting: Yes o  No þ Annual report 2025376 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### C. MANAGEMENT STRUCTURE C.1 Board of directors C.1.1 Maximum and minimum number of directors provided for in the Bylaws: | | | | --- | --- | | | | | Maximum number of directors | 17 | | Minimum number of directors | 12 | | Number of directors set by the General Meeting | 15 | C.1.2 Complete the following table with the directors’ details: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | Name or corporate name of director | Representative | Category of director | Position in the board | Date of first appointment | Date of last appointment | Election procedure | | Ana Botín-Sanz de Sautuola y O’Shea | N/A | Executive | Chair | 04/02/1989 | 04/04/2025 | Vote in general shareholders’ meeting | | Héctor Grisi Checa | N/A | Executive | Chief Executive Officer | 01/01/2023 | 04/04/2025 | Vote in general shareholders’ meeting | | Glenn H. Hutchins | N/A | Independent | Lead Independent Director | 20/12/2022 | 04/04/2025 | Vote in general shareholders’ meeting | | José Antonio Álvarez Álvarez | N/A | Other external | Vice Chair | 13/01/2015 | 22/03/2024 | Vote in general shareholders’ meeting | | Homaira Akbari | N/A | Independent | Director | 27/09/2016 | 31/03/2023 | Vote in general shareholders’ meeting | | Juan Carlos Barrabés Cónsul | N/A | Independent | Director | 27/06/2024 | 27/06/2024 | Vote in general shareholders’ meeting | | Javier Botín-Sanz de Sautuola y O’Shea | N/A | Other external | Director | 25/07/2004 | 22/03/2024 | Vote in general shareholders’ meeting | | Sol Daurella Comadrán | N/A | Independent | Director | 18/02/2015 | 31/03/2023 | Vote in general shareholders’ meeting | | Henrique de Castro | N/A | Independent | Director | 17/07/2019 | 22/03/2024 | Vote in general shareholders’ meeting | | Germán de la Fuente Escamilla | N/A | Independent | Director | 21/04/2022 | 22/03/2024 | Vote in general shareholders’ meeting | | Gina Díez Barroso Azcárraga | N/A | Independent | Director | 22/12/2020 | 31/03/2023 | Vote in general shareholders’ meeting | | Luis Isasi Fernández de Bobadilla | N/A | Other external | Director | 19/05/2020 | 04/04/2025 | Vote in general shareholders' meeting | | Belén Romana García | N/A | Independent | Director | 22/12/2015 | 22/03/2024 | Vote in general shareholders’ meeting | | Pamela Walkden | N/A | Independent | Director | 29/10/2019 | 04/04/2025 | Vote in general shareholders’ meeting | | Antonio Francesco Weiss | N/A | Independent | Director | 27/06/2024 | 27/06/2024 | Vote in general shareholders' meeting | | Total number of directors | 15 | | | | | | Indicate any directors who have left during the financial year to which this report relates, regardless of the reason (whether for resignation or by agreement of the general meeting or any other): | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Name or corporate name of director | Category of director at the time he/her left | Date of last appointment | Date of leave | Board committees he or she was a member of | Indicate whether he or she has left before the expiry of his or her term | | N/A | N/A | N/A | N/A | N/A | N/A | Annual report 2025377 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | C.1.3 Complete the following tables for the directors in each relevant category: | | | | | --- | --- | --- | | | | | | Executive directors | | | | Name or corporate name of director | Position held in the company | Profile | | Ana Botín-Sanz de Sautuola y O’Shea | Executive Chair | See section [4.1 'Our directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) in the 'Corporate governance' chapter in the annual report. | | Héctor Grisi Checa | CEO | See section [4.1 'Our directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) in the 'Corporate governance' chapter in the annual report. | | Total number of executive directors | | 2 | | % of the Board | | 13.33 | | | | | | --- | --- | --- | | | | | | Proprietary non-executive directors | | | | Name or corporate name of director | Name or corporate name of significant shareholder represented or having proposed his or her appointment | Profile | | N/A | N/A | N/A | | Total number of proprietary non-executive directors | | 0 | | % of the Board | | 0 | | | | | --- | --- | | | | | Independent directors | | | Name or corporate name of director | Profile | | Glenn H. Hutchins | See section [4.1 'Our directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) in the 'Corporate governance' chapter in the annual report. | | Homaira Akbari | See section [4.1 'Our directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) in the 'Corporate governance' chapter in the annual report. | | Juan Carlos Barrabés Cónsul | See section [4.1 'Our directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) in the 'Corporate governance' chapter in the annual report. | | Sol Daurella Comadrán | See section [4.1 'Our directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) in the 'Corporate governance' chapter in the annual report. | | Henrique de Castro | See section [4.1 'Our directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) in the 'Corporate governance' chapter in the annual report. | | Germán de la Fuente Escamilla | See section [4.1 'Our directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) in the 'Corporate governance' chapter in the annual report. | | Gina Díez Barroso Azcárraga | See section [4.1 'Our directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) in the 'Corporate governance' chapter in the annual report. | | Belén Romana Garcia | See section [4.1 'Our directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) in the 'Corporate governance' chapter in the annual report. | | Pamela Walkden | See section [4.1 'Our directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) in the 'Corporate governance' chapter in the annual report. | | Antonio Francesco Weiss | See section [4.1 'Our directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) in the 'Corporate governance' chapter in the annual report. | | Total number of independent directors | 10 | | % of the Board | 66.67 | Annual report 2025378 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Identify any independent director who receives from the company or its group any amount or perk other than his or her director remuneration, as a director, or who maintain or have maintained during the financial year covered in this report a business relationship with the company or any group company, whether in his or her own name or as a principal shareholder, director or senior manager of an entity which maintains or has maintained such a relationship. In such a case, a reasoned statement from the Board on why the relevant director(s) is able to carry on their duties as independent director(s) will be included. | | | | | --- | --- | --- | | | | | | Name or corporate name of director | Description of the rela tionship | Reasoned statement | | Sol Daurella Comadrán | Financing | When conducting the annual verification of the independence of directors classified as independent, the nomination committee analysed the business relationships between Grupo Santander and such directors and/or  the companies in which they are or have previously been principal shareholders, directors or senior managers. The committee concluded that the funding Grupo Santander granted to companies in which Sol Daurella was a principal shareholder or director in 2025 were not significant because, among other reasons: (i) they did not generate economic dependence on the companies involved in view of the substitutability of this funding by other sources, whether banks or others; (ii) they were consistent with Grupo Santander's share in the corresponding market; and (iii) they did not reach certain comparable materiality thresholds used in other jurisdictions (e.g. NYSE, Nasdaq and the Canadian Bank Act). | | Henrique de Castro | Business | When conducting the annual verification of the independence of directors classified as independent, the nomination committee analysed the business relationships between Grupo Santander and such directors and/or the companies in which they are or have previously been principal shareholders, directors or senior managers. The committee concluded that the business relationships maintained between Grupo Santander and the company in which Henrique de Castro was a director in 2025 were not significant because, among other reasons they did not reach certain comparable materiality thresholds used in other jurisdictions (e.g. NYSE and Nasdaq). | | Gina Díez Barroso Azcárraga | Business/Financing | When conducting the annual verification of the independence of directors classified as independent, the nomination committee analysed the business relationships between Grupo Santander and such directors and/or the companies in which they are or have previously been principal shareholders, directors or senior managers. The committee concluded that the business relationships maintained and the funding Grupo Santander granted to companies in which Gina Díez Barroso was a principal shareholder and director in 2025 were not significant because, among other reasons: (i) they did not generate a situation of economic dependence on the company involved in view of the substitutability of this funding by other sources, whether banks or others; (ii) they were consistent with Grupo Santander's share in the corresponding market; and (iii) they did not reach certain comparable materiality thresholds used in other jurisdictions (e.g. NYSE, Nasdaq and the Canadian Bank Act). | | Belén Romana García | Business/Financing | When conducting the annual verification of the independence of directors classified as independent, the nomination committee analysed the business relationships between Grupo Santander and such directors and/or the companies in which they are or have previously been principal shareholders, directors or senior managers. The committee concluded that the business relationships maintained and the funding Grupo Santander granted to companies in which Belén Romana was a director in 2025 were not significant because, among other reasons: (i) they did not generate economic dependence on the companies involved in view of the substitutability of this funding by other sources, whether banks or others; (ii) they were consistent with Grupo Santander's share in the corresponding market; and (iii) they did not reach certain comparable materiality thresholds used in other jurisdictions (e.g. NYSE, Nasdaq and the Canadian Bank Act). | | Juan Carlos Barrabés Cónsul | Financing | When conducting the annual verification of the independence of directors classified as independent, the nomination committee analysed the business relationships between Grupo Santander and such directors and/or the companies in which they are or have previously been principal shareholders, directors or senior managers. The committee concluded that the funding Grupo Santander granted to Juan Carlos Barrabés and the companies in which he was a principal shareholder or director in 2025 were not significant because, among other reasons: (i) it did not generate economic dependence in view of the substitutability of this funding by other sources, whether banks or others; (ii) it was consistent with Grupo Santander's share in the corresponding market; and (iii) it did not reach certain comparable materiality thresholds used in other jurisdictions (e.g. NYSE, Nasdaq and the Canadian Bank Act). | | Antonio Francesco Weiss | Business | When conducting the annual verification of the independence of directors classified as independent, the nomination committee analysed the business relationships between Grupo Santander and such directors and/or the companies in which they are or have previously been principal shareholders, directors or senior managers. The committee concluded that the business relationships maintained between Grupo Santander and the company in which Antonio Weiss was a principal shareholder in 2025 were not significant because, among other reasons they did not reach certain comparable materiality thresholds used in other jurisdictions (e.g. NYSE and Nasdaq). | Annual report 2025379 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | --- | --- | | | | | Other external directors | | Identify all other external directors and explain why these cannot be considered proprietary or independent directors and detail their relationships with the company, its executives or shareholders: | | | | | | --- | --- | --- | --- | | | | | | | Name or corporate name of director | Reasons | Company, manager or shareholder to which or to whom the director is related | Profile | | José Antonio Álvarez Álvarez | Mr Álvarez was the former CEO of Banco Santander until 31 December 2022, pursuant to sub-section 4.a) of article 529 duodecies of the Spain's Companies Act. | Banco Santander, S.A. | See section [4.1 'Our](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) [directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) in the Corporate governance chapter in the annual report. | | Javier Botín-Sanz de Sautuola y O’Shea | Mr Botín has been director for over 12 years, pursuant to sub-section 4. i) of article 529 duodecies of the Spain's Companies Act. | Banco Santander, S.A. | See section [4.1 'Our](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) [directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) in the Corporate governance chapter in the annual report. | | Luis Isasi Fernández de Bobadilla | Under prudent criteria given his remuneration as non- executive Chair of Santander España’s body as supervisor, business unit without its own corporate identity separate to Banco Santander, pursuant to sub-sections 2 to 4 of article 529 duodecies of the Spain's Companies Act. | Banco Santander, S.A. | See section [4.1 'Our](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) [directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) in the Corporate governance chapter in the annual report. | | Total number of other external directors | | | 3 | | % of the Board | | | 20.00 | List any changes in the category of a director which have occurred during the period covered in this report. | | | | | | --- | --- | --- | --- | | | | | | | Name or corporate name of director | Date of change | Previous category | Current category | | — | — | — | — | C.1.4 Complete the following table on the number of female directors at the end of each the past four years and their category: | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Number of female directors | | | | | % of total directors of each category | | | | | | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | | Executive | 1 | 1 | 1 | 1 | 50.00 | 50.00 | 50.00 | 50.00 | | Proprietary | — | — | — | — | 0.00 | 0.00 | 0.00 | 0.00 | | Independent | 5 | 5 | 5 | 5 | 50.00 | 50.00 | 50.00 | 50.00 | | Other external | — | — | — | — | 0.00 | 0.00 | 0.00 | 0.00 | | Total: | 6 | 6 | 6 | 6 | 40.00 | 40.00 | 40.00 | 40.00 | Annual report 2025380 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | C.1.11 List the positions of director, administrator or representative thereof, held by directors or representatives of directors who are members of the company's board of directors in other entities, whether or not they are listed companies: | | | | | | --- | --- | --- | --- | | | | | | | Identity of the director or representative | Company name of the listed or non-listed entity | Position | Remunerated YES/NO | | Ana Botín-Sanz de Sautuola y O’Shea | The Coca-Cola Company | Director | YES | | Héctor Grisi Checa | Cogrimex, S.A. de C.V. | Chair | NO | | | Galve Investments, S.L. | Sole director | NO | | Glenn H. Hutchins | CoreWeave, Inc. | Director | YES | | North Island, LLC | Chair | NO | | North Island Ventures, LLC | Chair | NO | | José Antonio Álvarez Álvarez | Aon plc | Director | YES | | Homaira Akbari | Landstar System, Inc. | Director | YES | | AKnowledge Partners, LLC | Chief Executive Officer | YES | | Juan Carlos Barrabés Cónsul | Grupo Barrabés Cónsul, S.L. | Chair-Chief Executive Officer | NO | | Barrabés Internet, S.L.U. | Chief Executive Officer | NO | | Barrabés Ski Montaña, S.L.U. | Director | NO | | Action & Lifestyle, S.L.U. | Director | NO | | Tuca del Mont, S.L. | Chief Executive Officer | NO | | Ediciones Montañas y Hombres, S.L.U. | Director | NO | | Llitarrada Innova, S.L. | Representative of sole director | NO | | Innova Next, S.L.U. | Representative of joint and several director | NO | | Step One Ventures, S.L. | Representative of joint and several director | NO | | Agencia Certificadora Autónoma, S.L.U. | Representative of joint and several director | NO | | Javier Botín-Sanz de Sautuola y O’Shea | JB Capital Markets, S. V., S.A.U. | Chair | YES | | Inversiones Zulú, S.L. | Chair-Chief Executive Officer | NO | | Agropecuaria El Castaño, S.L.U. | Joint director | NO | | Agropecuaria El Castaño Ibérica, S.L.U. | Joint director | NO | | Inversiones Peña Cabarga, S.L. | Joint and several director | NO | | Sol Daurella Comadrán | Coca-Cola Europacific Partners plc | Chair | YES | | Cobega, S.A. | Representative of director | NO | | Equatorial Coca Cola Bottling Company, S.L. | Director | YES | | Cobega Invest S.L. | Joint director | NO | | Olive Partners, S.A. | Representative of director | NO | | Indau, s.à.r.l. | Director | YES | | Henrique de Castro | Fiserv Inc. | Director | YES | | Stakecorp Capital, s.à.r.l. | Director | NO | | Gina Díez Barroso Azcárraga | Grupo Axo, S.A.P.I. de C.V. | Director | YES | | Centro de Diseño y Comunicación, S.C. | Chair | NO | | Bolsa Mexicana de Valores, S.A.B. de C.V. | Director | YES | | Luis Isasi Fernández de Bobadilla | Logista Integral, S.A. | Chair | YES | | Balcón del Parque, S.L. | Sole director | NO | | Santa Clara de C. Activos, S.L. | Joint and several director | NO | | Belén Romana García | Werfen, S.A. | Director | YES | | SIX Group AG | Director | YES | | SIX Digital Exchange AG | Chair | YES | | SDX Trading AG | Chair | YES | | Bolsas y Mercados Españoles, Sociedad Holding de Mercados y Sistemas Financieros, S.A. | Director | YES | | Industria de Diseño Textil, S.A. (Inditex) | Director | YES | | Antonio Francesco Weiss | Société Familiale d'Investissements S.A. | Director | YES | Annual report 2025381 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Indicate, where appropriate, the other remunerated activities of the directors or directors' representatives, whatever their nature, other than those indicated in the previous table. | | | | --- | --- | | | | | Identity of the director or representative | Other paid activities | | Glenn H. Hutchins | Member of the international advisory board Government of Singapore Investment Corporation | | Homaira Akbari | Member of the Security Advisory Board of Telefónica Soluciones de Criptografía, S.A.U. | | Luis Isasi Fernández de Bobadilla | Senior advisor of I Squared Capital Advisors (UK) LLP | | Belén Romana García | Senior advisor of Artá Capital, S.G.E.I.C., S.A. | | Academic director of the IE Leadership & Foresight Hub Programme | | Pamela Walkden | Member of the advisory board of JD Haspel Ltd | | Antonio Francesco Weiss | Partner of SSW Partners LP | | Associate of AFWCo LP | | Senior advisor of JAB Holdings | C.1.12 Indicate and, if applicable explain, if the company has established rules on the maximum number of directorships its directors may hold and, if so, where they are regulated: Yes þ  No o The maximum number of directorships is established, as provided for in article 30 of the Rules and regulations of the board, in article 26 of Spain's Law 10/2014 on the ordering, supervision and solvency of credit institutions. This rule is further developed by articles 29 and subsequent of Royal Decree 84/2015 and by Rules 30 and subsequent of Bank of Spain Circular 2/2016. C.1.13 Identify the following items of the total remuneration of the board of directors: | | | | --- | --- | | | | | Board remuneration accrued in the fiscal year (EUR thousand) | 29,462 | | Funds accumulated by current directors for long-term savings systems with consolidated economic rights (EUR thousand) | 90,238 | | Funds accumulated by current directors for long-term savings systems with unconsolidated economic rights (EUR thousand) | 0 | | Pension rights accumulated by former directors (EUR thousand) | 42,506 | C.1.14 Identify the members of the company’s senior management who are non executive directors and indicate total remuneration they have accrued during the financial year: | | | | --- | --- | | | | | Name or corporate name | Position (s) | | Mahesh Chatta Aditya | Group Chief Risk Officer | | Daniel Barriuso Rojo | Global Head of Retail & Commercial Banking and Group Chief Transformation Officer | | Julia Bayón Pedraza | Group Chief Audit Executive | | Juan Manuel Cendoya Méndez de Vigo | Group Head of Communications, Corporate Marketing and Research | | Manuel Preto | Group Chief Accounting Officer | | José Antonio García Cantera | Group Chief Financial Officer | | Francisco Javier García-Carranza Benjumea | Global Head of Wealth Management & Insurance | | David Hazell | Group Chief Compliance Officer | | José María Linares Perou | Global Head of Corporate & Investment Banking | | Mónica Lopez-Monís Gallego | Group Head of Supervisory and Regulatory Relations | | Juan María Olaizola Bartolomé | Group Chief Operating & Technology Officer | | José Luis de Mora Gil-Gallardo | Group Head of Corporate Development and Financial Planning | | Jaime Pérez Renovales | Group General Counsel | | Nitin Prabhu | Global Head of Digital Consumer Bank | | Javier Roglá Puig | Group Head of People, Culture & Organization | | Number of women in senior management | 2 | | Percentage of total senior management | 13.33% | | Total remuneration accrued by the senior management (EUR thousand) | 57,592 | C.1.15 Indicate whether any changes have been made to the board's regulations during the financial year: Yes o  No þ C.1.21 Indicate whether there are any specific requirements, other than those applying to directors generally, to be appointed Chair: Yes o  No þ Annual report 2025382 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | C.1.23 Indicate whether the Bylaws or the board's regulations set a limited term of office (or other requirements which are stricter than those provided for in the law) for independent directors different than the one provided for in the law. Yes o  No þ C.1.25 Indicate the number of board meetings held during the financial year and how many times the board has met without the Chair’s attendance. Attendance also includes proxies appointed with specific instructions: | | | | --- | --- | | | | | Number of board meetings | 13 | | Number of board meetings held without the Chair’s attendance | 0 | Indicate the number of meetings held by the Lead Independent Director with the rest of directors without the attendance or representation of any executive director. | | | | --- | --- | | | | | Number of meetings | 5 | Indicate the number of meetings of the various board committees held during the financial year. | | | | --- | --- | | | | | Number of meetings of the audit committee | 15 | | Number of meetings of the responsible banking, sustainability and culture committee | 4 | | Number of meetings of the innovation and technology committee | 4 | | Number of meetings of the nomination committee | 9 | | Number of meetings of the remuneration committee | 9 | | Number of meetings of the risk supervision, regulation and compliance committee | 14 | | Number of meetings of the executive committee | 23 | C.1.26 Indicate the number of board meetings held during the financial year and data about the attendance of the directors: | | | | --- | --- | | | | | Number of meetings with at least 80% of directors being present | 13 | | % of votes cast by members present over total votes in the financial year | 99 | | Number of board meetings with all directors being present (or represented having given specific instructions) | 12 | | % of votes cast by members present at the meeting or represented with specific instructions over total votes in the financial year | 99.48 | C.1.27 Indicate whether the company´s consolidated and individual financial statements are certified before they are submitted to the board for their formulation. Yes þ  No o Identify, where applicable, the person(s) who certified the company’s individual and consolidated financial statements prior to their formulation by the board: | | | | --- | --- | | | | | Name | Position | | Manuel Preto | Group Chief Accounting Officer | C.1.29 Is the secretary of the board also a director? Yes o  No þ If the secretary of the board is not a director fill in the following table: | | | | --- | --- | | | | | Name or corporate name of the secretary | Representative | | Jaime Pérez Renovales | N/A | C.1.31 Indicate whether the company has changed its external audit firm during the financial year. If so, identify the incoming audit firm and the outgoing audit firm: Yes o  No þ Annual report 2025383 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | C.1.32 Indicate whether the audit firm performs non-audit work for the company and/or its group. If so, state the amount of fees paid for such work and express this amount as a percentage they represent of all fees invoiced to the company and/or its group. Yes þ  No o | | | | | | --- | --- | --- | --- | | | | | | | | Company | Group companies | Total | | Amount of non-audit work (EUR thousand) | 8,599 | 7,328 | 15,927 | | Amount of non-audit work as a % of amount of audit work | 28.85 | 9.75 | 15.18 | C.1.33 Indicate whether the audit report on the previous year’s financial statements contains a qualified opinion or reservations. Indicate the reasons given by the Chair of the audit committee to the shareholders in the general shareholders meeting to explain the content and scope of those qualified opinion or reservations. Yes o   No þ C.1.34 Indicate the number of consecutive years during which the current audit firm has been auditing the financial statements of the company and/or its group. Likewise, indicate for how many years the current firm has been auditing the financial statements as a percentage of the total number of years over which the financial statements have been audited: | | | | | --- | --- | --- | | | | | | | Individual financial statements | Consolidated financial statements | | Number of consecutive years | 10 | 10 | | | | | | --- | --- | --- | | | | | | | Company | Group | | Number of years audited by current audit firm/Number of years the company’s or its Group financial statements have been audited (%) | 22.73 | 23.26 | C.1.35 Indicate and if applicable explain whether there are procedures for directors to receive the information they need in sufficient time to prepare for meetings of the governing bodies: Yes þ  No o | | | --- | | | | Procedures | | Our Rules and regulations of the board foresees that members of the board and committees are provided with the relevant documentation for each meeting sufficiently in advance of the meeting date. | C.1.39 Identify, individually in the case of directors, and in the aggregate in all other cases, and provide detailed information on, agreements between the company and its directors, executives and employees that provide indemnification, guarantee or golden parachute clause in the event of resignation, unfair dismissal or termination as a result of a takeover bid or other type of transaction. | | | | --- | --- | | | | | Number of beneficiaries | 25 | | Type of beneficiary | Description of the agreement: | | Employees | The Bank has no commitments to provide severance pay to directors. A number of employees have a right to compensation equivalent to one to two years of their basic salary in the event of their contracts being terminated by the Bank in the first two years of their contract in the event of dismissal on grounds other than their own will, retirement, disability or serious dereliction of duties. In addition, for the purposes of legal compensation, in the event of redundancy a number of employees are entitled to recognition of length of service including services provided prior to being contracted by the Bank; this would entitle them to higher compensation than they would be due based on their actual length of service with the Bank itself. | Indicate whether these agreements must be reported to and/or authorised by the governing bodies of the company or its group beyond the procedures provided for in applicable law. If applicable, specify the process applied, the situations in which they apply, and the bodies responsible for approving or communicating those agreements: | | | | | --- | --- | --- | | | | | | | Board of directors | General Shareholders’ Meeting | | Body authorising clauses | √ | | | | | | | --- | --- | --- | | | | | | | YES | NO | | Is the general shareholders’ meeting informed of such clauses? | √ | | Annual report 2025384 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### C.2 Board committees C.2.1 Give details of all the board committees, their members and the proportion of executive, independent and other external directors. | | | | | --- | --- | --- | | | | | | Executive committee | | | | Name | Position | Type | | Ana Botín-Sanz de Sautuola y O’Shea | Chair | Executive | | Héctor Grisi Checa | Member | Executive | | José Antonio Álvarez Álvarez | Member | Other external | | Luis Isasi Fernández de Bobadilla | Member | Other external | | Belén Romana García | Member | Independent | | % of executive directors | | 40.00 | | % of proprietary directors | | 0.00 | | % of independent directors | | 20.00 | | % of other external directors | | 40.00 | | | | | | Audit committee | | | | Name | Position | Type | | Germán de la Fuente Escamilla | Chair | Independent | | Homaira Akbari | Member | Independent | | Henrique de Castro | Member | Independent | | Belén Romana García | Member | Independent | | Pamela Walkden | Member | Independent | | % of executive directors | | 0 | | % of proprietary directors | | 0 | | % of independent directors | | 100 | | % of other external directors | | 0 | Identify those directors in the audit committee who have been appointed on the basis of their knowledge and experience in accounting, audit or both and indicate the date of appointment of the committee chair. | | | | --- | --- | | | | | Name of directors with accounting or audit experience | Germán de la Fuente Homaira Akbari Henrique de Castro Belén Romana García Pamela Walkden | | | | | | | | Date of appointment of the committee chair for that position | 23 March 2024 | | | | | | --- | --- | --- | | | | | | Nomination committee | | | | Name | Position | Type | | Belén Romana García | Chair | Independent | | Juan Carlos Barrabés Cónsul | Member | Independent | | Sol Daurella Comadrán | Member | Independent | | Gina Díez Barroso | Member | Independent | | Glenn H. Hutchins | Member | Independent | | % of executive directors | | 0 | | % of proprietary directors | | 0 | | % of independent directors | | 100 | | % of other external directors | | 0 | | | | | Annual report 2025385 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | Remuneration committee | | | | Name | Position | Type | | Glenn H. Hutchins | Chair | Independent | | Sol Daurella Comadrán | Member | Independent | | Henrique de Castro | Member | Independent | | Luis Isasi Fernández de Bobadilla | Member | Other external | | Antonio Francesco Weiss | Member | Independent | | % of executive directors | | 0 | | % of proprietary directors | | 0 | | % of independent directors | | 80.00 | | % of other external directors | | 20.00 | | | | | | Risk supervision, regulation and compliance committee | | | | Name | Position | Type | | Pamela Walkden | Chair | Independent | | José Antonio Álvarez Álvarez | Member | Other external | | Germán de la Fuente Escamilla | Member | Independent | | Luis Isasi Fernández de Bobadilla | Member | Other external | | Belén Romana García | Member | Independent | | % of executive directors | | 0 | | % of proprietary directors | | 0 | | % of independent directors | | 60.00 | | % of other external directors | | 40.00 | | | | | | Responsible banking, sustainability and culture committee | | | | Name | Position | Type | | Sol Daurella Comadrán | Chair | Independent | | Homaira Akbari | Member | Independent | | Juan Carlos Barrabés Cónsul | Member | Independent | | Gina Díez Barroso Azcárraga | Member | Independent | | Belén Romana García | Member | Independent | | % of executive directors | | 0 | | % of proprietary directors | | 0 | | % of independent directors | | 100 | | % of other external directors | | 0 | | | | | | Innovation and technology committee | | | | Name | Position | Type | | Glenn H. Hutchins | Chair | Independent | | Ana Botín-Sanz de Sautuola y O'Shea | Member | Executive | | Homaira Akbari | Member | Independent | | José Antonio Álvarez Álvarez | Member | Other external | | Juan Carlos Barrabés Cónsul | Member | Independent | | Henrique de Castro | Member | Independent | | Héctor Grisi Checa | Member | Executive | | Belén Romana García | Member | Independent | | % of executive directors | | 25.00 | | % of proprietary directors | | 0.00 | | % of independent directors | | 62.50 | | % of other external directors | | 12.50 | Annual report 2025386 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | C.2.2 Complete the following table on the number of female directors on the various board committees over the past four years. | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Number of female directors | | | | | | | | | | | | | FY 2025 | | | FY 2024 | | | FY 2023 | | | FY 2022 | | | | Number | % | | Number | % | | Number | % | | Number | % | | Audit committee | 3 | 60.00 | | 3 | 50.00 | | 3 | 50.00 | | 3 | 50.00 | | Responsible banking, sustainability and culture committee | 4 | 80.00 | | 4 | 80.00 | | 4 | 80.00 | | 3 | 75.00 | | Innovation and technology committee | 3 | 37.50 | | 3 | 37.50 | | 3 | 42.86 | | 3 | 42.86 | | Nomination committee | 3 | 60.00 | | 3 | 60.00 | | 2 | 50.00 | | 2 | 50.00 | | Remuneration committee | 1 | 20.00 | | 1 | 25.00 | | 1 | 20.00 | | 1 | 20.00 | | Risk supervision, regulation and compliance committee | 2 | 40.00 | | 2 | 50.00 | | 2 | 40.00 | | 2 | 50.00 | | Executive committee | 2 | 40.00 | | 2 | 40.00 | | 2 | 33.33 | | 2 | 33.33 | D. RELATED-PARTY AND INTRAGROUP TRANSACTIONS D.2 Give individual details of operations that are significant due to their amount or of importance due to their subject matter carried out between the company or its subsidiaries and shareholders holding 10% or more of the voting rights or who are represented on the board of directors of the company, indicating which has been the competent body for its approval and if any affected shareholder or director has abstained. In the event that the board of directors has responsibility, indicate if the proposed resolution has been approved by the board without a vote against the majority of the independents: Not applicable. D.3 Give individual details of the operations that are significant due to their amount or relevant due to their subject matter carried out by the company or its subsidiaries with the administrators or managers of the company, including those operations carried out with entities that the administrator or manager controls or controls jointly, indicating the competent body for its approval and if any affected shareholder or director has abstained. In the event that the board of directors has responsibility, indicate if the proposed resolution has been approved by the board without a vote against the majority of the independents: Not applicable. Annual report 2025387 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | D.4 Report individually on intra-group transactions that are significant due to their amount or relevant due to their subject matter that have been undertaken by the company with its parent company or with other entities belonging to the parent's group, including subsidiaries of the listed company, except where no other related party of the listed company has interests in these subsidiaries or that they are fully owned, directly or indirectly, by the listed company. In any case, report any intragroup transactions carried out with entities in countries or territories considered to be tax havens. | | | | | --- | --- | --- | | | | | | Corporate name of the group company | Brief description of the transaction and any other information necessary for its evaluation | Amount (EUR thousand) | | The information included in this chart shows the transactions carried out and the results obtained by Banco Santander, S.A. in Spain and its foreign branches as of 31 December 2025, with Group entities resident in countries or territories that, as of that date, were considered non-cooperative jurisdictions in accordance with the applicable Spanish legislation (Law 11/2021, of 9 July, on measures to prevent and fight against tax fraud). Such results, as well as the balances shown below, have been eliminated in the consolidation process. See [note 3.c)](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1003) of the 'Consolidated financial statements' for further information on offshore entities. | | | | Banco Santander (Brasil) S.A. (Cayman Islands Branch) | The amount shown on the right corresponds to net negative results (including foreign exchange differences) associated with derivatives transactions. These derivatives had a net negative market value of EUR 520 million and comprised the following transactions: - 140 Non-Delivery Forwards. - 377 Swaps. - 103 Cross Currency Swaps. - 37 Options. - 151 Forex. | 265,061 | | The amount shown on the right corresponds to negative interest results associated with deposits (liabilities). Such deposits had a nominal value of EUR 1,476 million as of 31 December 2025. | 29,521 | | The amount shown on the right relates to negative results from interest and fees associated with correspondent accounts (liabilities). These correspondent accounts had a credit balance of EUR 4 million as of 31 December 2025. | 156 | | The amount shown on the right corresponds to interest results associated with loans and advances (assets). Such loans and advances had a credit balance of EUR 26 thousand as of 31 December 2025, which was offset by a deposit of the same amount. | 0 | | The amount shown on the right corresponds to interest results associated with other assets (rest). Such assets had a debit balance of EUR 25 thousand as of 31 December 2025. | 0 | | The amount shown on the right corresponds to positive results from fees and commissions received. | 225 | D.5 Give individual details of the operations that are significant due to their amount or relevant due to their subject matter carried out by the company or its subsidiaries with other related parties pursuant to the international accounting standards adopted by the EU, which have not been reported in previous sections. Not applicable. Annual report 2025388 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | G. DEGREE OF COMPLIANCE WITH THE #### CORPORATE GOVERNANCE RECOMMENDATIONS Indicate the degree of the company’s compliance with the recommendations of the good governance code for listed companies. Should the company not comply with any of the recommendations or comply only in part, include a detailed explanation of the reasons so that shareholders, investors and the market in general have enough information to assess the company’s behaviour. General explanations are not acceptable. 1. The bylaws of listed companies should not place an upper limit on the votes that can be cast by a single shareholder, or impose other obstacles to the takeover of the company by means of share purchases on the market. Complies 2. When the listed company is controlled, pursuant to the meaning established in Article 42 of the Commercial Code, by another listed or non-listed entity, and has, directly or through its subsidiaries, business relationships with that entity or any of its subsidiaries (other than those of the listed company) or carries out activities related to the activities of any of them, this is reported publicly, with specific information about: a) The respective areas of activity and possible business relationships between, on the one hand, the listed company or its subsidiaries and, on the other, the parent company or its subsidiaries. b) The mechanisms established to resolve any conflicts of interest that may arise. Not applicable 3. During the AGM the chair of the board should verbally inform shareholders in sufficient detail of the most relevant aspects of the company’s corporate governance, supplementing the written information circulated in the annual corporate governance report. In particular: a) Changes taking place since the previous annual general meeting. b) The specific reasons for the company not following a given Good Governance Code recommendation, and any alternative procedures followed in its stead. Complies 4. The company should define and promote a policy for communication and contact with shareholders and institutional investors within the framework of their involvement in the company, as well as with proxy advisors, that complies in full with the rules on market abuse and gives equal treatment to shareholders who are in the same position. The company should make said policy public through its website, including information regarding the way in which it has been implemented and the parties involved or those responsible its implementation. Further, without prejudice to the legal obligations of disclosure of inside information and other regulated information, the company should also have a general policy for the communication of economic-financial, non-financial and corporate information through the channels it considers appropriate (media, social media or other channels) that helps maximise the dissemination and quality of the information available to the market, investors and other stakeholders. Complies 5. The board of directors should not make a proposal to the general meeting for the delegation of powers to issue shares or convertible securities without pre-emptive subscription rights for an amount exceeding 20% of capital at the time of such delegation. And that whenever the board of directors approves an issuance of shares or convertible securities without pre-emptive rights the company immediately publishes reports on its web page regarding said exclusions as referenced in applicable mercantile law. Complies 6. Listed companies drawing up the following reports on a voluntary or compulsory basis should publish them on their website well in advance of the AGM, even if their distribution is not obligatory: a) Report on auditor independence. b) Reviews of the operation of the audit committee and the nomination and remuneration committees. c) Audit committee report on third-party transactions. Complies Annual report 2025389 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 7. The company should broadcast its general meetings live on the corporate website. The company should have mechanisms that allow the delegation and exercise of votes by electronic means and even, in the case of large-cap companies and, to the extent that it is proportionate, attendance and active participation in the general shareholders’ meeting. Complies 8. The audit committee should strive to ensure that the financial statements that the board of directors presents to the general shareholders’ meeting are drawn up in accordance to accounting legislation. And in those cases where the auditors includes any qualification in its report, the chair of the audit committee should give a clear explanation at the general meeting of their opinion regarding the scope and content, making a summary of that opinion available to the shareholders at the time of the publication of the notice of the meeting, along with the rest of proposals and reports of the board. Complies 9. The company should disclose its conditions and procedures for admitting share ownership, the right to attend general meetings and the exercise or delegation of voting rights, and display them permanently on its website. Such conditions and procedures should encourage shareholders to attend and exercise their rights and be applied in a non- discriminatory manner. Complies 10. When a shareholder so entitled exercises the right to supplement the agenda or submit new proposals prior to the general meeting, the company should: a) Immediately circulate the supplementary items and new proposals. b) Disclose the standard attendance card or proxy appointment or remote voting form, duly modified so that new agenda items and alternative proposals can be voted on in the same terms as those submitted by the board of directors. c) Put all these items or alternative proposals to the vote applying the same voting rules as for those submitted by the board of directors, with particular regard to presumptions or deductions about the direction of votes. d) After the general meeting, disclose the breakdown of votes on such supplementary items or alternative proposals. Complies 11. In the event that a company plans to pay for attendance at the general meeting, it should first establish a general, long-term policy in this respect. Not applicable 12. The board of directors should perform its duties with unity of purpose and independent judgement, according the same treatment to all shareholders in the same position. It should be guided at all times by the company’s best interest, understood as the creation of a profitable business that promotes its sustainable success over time, while maximising its economic value. In pursuing the corporate interest, it should not only abide by laws and regulations and conduct itself according to principles of good faith, ethics and respect for commonly accepted customs and good practices, but also strive to reconcile its own interests with the legitimate interests of its employees, suppliers, clients and other stakeholders, as well as with the impact of its activities on the broader community and the natural environment. Complies 13. The board of directors should have an optimal size to promote its efficient functioning and maximise participation. The recommended range is accordingly between five and fifteen members. Complies 14. The board of directors should approve a policy aimed at promoting an appro­priate composition of the board that: a) is concrete and verifiable; b) ensures that appointment or re-election proposals are based on a prior analysis of the competences required by the board; and c) favours diversity of knowledge, experience, age and gender. Therefore, measures that encourage the company to have a significant number of female senior managers are considered to favour gender diversity. The results of the prior analysis of competences required by the board should be written up in the nomination committee’s explanatory report, to be pub­lished when the general shareholders’ meeting is convened that will ratify the appointment and re-election of each director. The nomination committee should run an annual check on compliance with this policy and set out its findings in the annual corporate governance report. Complies 15. Proprietary and independent directors should constitute an ample majority on the board of directors, while the number of executive directors should be the minimum practical bearing in mind the complexity of the corporate group and the ownership interests they control. Further, the number of female directors should account for at least 40% of the members of the board of directors before the end of 2022 and thereafter, and not less than 30% previous to that. Complies Annual report 2025390 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 16. The percentage of proprietary directors out of all non-executive directors should be no greater than the proportion between the ownership stake of the shareholders they represent and the remainder of the company’s capital. This criterion can be relaxed: a) In large cap companies where few or no equity stakes attain the legal threshold for significant shareholdings. b) In companies with a plurality of shareholders represented on the board but not otherwise related. Complies 17. Independent directors should be at least half of all board members. However, when the company does not have a large market capitalisation, or when a large cap company has shareholders individually or concertedly controlling over 30 percent of capital, independent directors should occupy, at least, a third of board places. Complies 18. Companies should disclose the following director particulars on their websites and keep them regularly updated: a) Background and professional experience. b) Directorships held in other companies, listed or otherwise, and other paid activities they engage in, of whatever nature. c) Statement of the director class to which they belong, in the case of proprietary directors indicating the shareholder they represent or have links with. d) Dates of their first appointment as a board member and subsequent re-elections. e) Shares held in the company, and any options on the same. Complies 19. Following verification by the nomination committee, the annual corporate governance report should disclose the reasons for the appointment of proprietary directors at the urging of shareholders controlling less than 3 percent of capital; and explain any rejection of a formal request for a board place from shareholders whose equity stake is equal to or greater than that of others applying successfully for a proprietary directorship. Not applicable 20. Proprietary directors should resign when the shareholders they represent dispose of their ownership interest in its entirety. If such shareholders reduce their stakes, thereby losing some of their entitlement to proprietary directors, the number of the latter should be reduced accordingly. Complies 21. The board of directors should not propose the removal of independent directors before the expiry of their tenure as mandated by the bylaws, except where they find just cause, based on a proposal from the nomination committee. In particular, just cause will be presumed when directors take up new posts or responsibilities that prevent them allocating sufficient time to the work of a board member, or are in breach of their fiduciary duties or come under one of the disqualifying grounds for classification as independent enumerated in the applicable legislation. The removal of independent directors may also be proposed when a takeover bid, merger or similar corporate transaction alters the company’s capital structure, provided the changes in board membership ensue from the proportionality criterion set out in recommendation 16. Complies 22. Companies should establish rules obliging directors to disclose any circum­stance that might harm the organisation’s name or reputation, related or not to their actions within the company, and tendering their resignation as the case may be, and, in particular, to inform the board of any criminal charges brought against them and the progress of any subsequent trial. When the board is informed or becomes aware of any of the situations men­tioned in the previous paragraph, the board of directors should examine the case as soon as possible and, attending to the particular circumstances, de­cide, based on a report from the nomination and remuneration committee, whether or not to adopt any measures such as opening of an internal investigation, calling on the director to resign or proposing his or her dismissal. The board should give a reasoned account of all such determinations in the annual corporate governance report, unless there are special circumstances that justify otherwise, which must be recorded in the minutes. This is without prejudice to the information that the company must disclose, if appropriate, at the time it adopts the corresponding measures. Complies 23. Directors should express their clear opposition when they feel a proposal submitted for the board’s approval might damage the corporate interest. In particular, independents and other directors not subject to potential conflicts of interest should strenuously challenge any decision that could harm the interests of shareholders lacking board representation. When the board makes material or reiterated decisions about which a director has expressed serious reservations, then he or she must draw the pertinent conclusions. Directors resigning for such causes should set out their reasons in the letter referred to in the next recommendation. The terms of this recommendation also apply to the secretary of the board, even if he or she is not a director. Complies Annual report 2025391 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 24. Directors who give up their position before their tenure expires, through resignation or resolution of the general meeting, should state the reasons for this decision, or in the case of non-executive directors, their opinion of the reasons for the general meeting resolution, in a letter to be sent to all members of the board. This should all be reported in the annual corporate governance report, and if it is relevant for investors, the company should publish an announcement of the departure as rapidly as possible, with sufficient reference to the reasons or circumstances provided by the director. Complies 25. The nomination committee should ensure that non-executive directors have sufficient time available to discharge their responsibilities effectively. The board rules and regulations should lay down the maximum number of company boards on which directors can serve. Complies 26. The board should meet with the necessary frequency to properly perform its functions, eight times a year at least, in accordance with a calendar and agendas set at the start of the year, to which each director may propose the addition of initially unscheduled items. Complies 27. Director absences should be kept to a strict minimum and quantified in the annual corporate governance report. In the event of absence, directors should delegate their powers of representation with the appropriate instructions. Complies 28. When directors or the secretary express concerns about some proposal or, in the case of directors, about the company’s performance, and such concerns are not resolved at the meeting, they should be recorded in the minutes book if the person expressing them so requests. Complies 29. The company should provide suitable channels for directors to obtain the advice they need to carry out their duties, extending if necessary to external assistance at the company’s expense. Complies 30. Regardless of the knowledge directors must possess to carry out their duties, they should also be offered refresher programmes when circumstances so advise. Complies 31. The agendas of board meetings should clearly indicate on which points directors must arrive at a decision, so they can study the matter beforehand or obtain the information they consider appropriate. For reasons of urgency, the chair may wish to present decisions or resolutions for board approval that were not on the meeting agenda. In such exceptional circumstances, their inclusion will require the express prior consent, duly minuted, of the majority of directors present. Complies 32. Directors should be regularly informed of movements in share ownership and of the views of major shareholders, investors and rating agencies on the company and its group. Complies 33. The chair, as the person responsible for the efficient functioning of the board of directors, in addition to the functions assigned by law and the company’s bylaws, should prepare and submit to the board a schedule of meeting dates and agendas; organise and coordinate regular evaluations of the board and, where appropriate, of the company’s chief executive officer; exercise leadership of the board and be accountable for its proper functioning; ensure that sufficient time is given to the discussion of strategic issues, and approve and review refresher courses for each director, when circumstances so advise. Complies 34. When a lead independent director has been appointed, the bylaws or the Rules and regulations of the board of directors should grant him or her the following powers over and above those conferred by law: to chair the board of directors in the absence of the chair or vice chair; to give voice to the concerns of non-executive directors; to maintain contact with investors and shareholders to hear their views and develop a balanced understanding of their concerns, especially those to do with the company’s corporate governance; and to coordinate the chair’s succession plan. Complies 35. The board secretary should strive to ensure that the board’s actions and decisions are informed by the governance recommendations of the Good Governance Code of relevance to the company. Complies Annual report 2025392 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 36. The board in full should conduct an annual evaluation, adopting, where necessary, an action plan to correct weakness detected in: a) The quality and efficiency of the board’s operation. b) The performance and membership of its committees. c) The diversity of board membership and competencies. d) The performance of the chair of the board of directors and the company’s chief executive. e) The performance and contribution of individual directors, with particular attention to the chair of board committees. The evaluation of board committees should start from the reports they send to the board of directors, while that of the board itself should start from the report of the nomination committee. Every three years, the board of directors should engage an external facilitator to aid in the evaluation process. This facilitator’s independence should be verified by the nomination committee. Any business dealings that the facilitator or members of its corporate group maintain with the company or members of its corporate group should be detailed in the annual corporate governance report. The process followed and areas evaluated should be detailed in the annual corporate governance report. Complies 37. When there is an executive committee, there should be at least two non-executive members, at least one of whom should be independent; and its secretary should be the secretary of the board of directors. Complies 38. The board should be kept fully informed of the matters discussed and decisions made by the executive committee. To this end, all board members should receive a copy of the committee’s minutes. Complies 39. All members of the audit committee, particularly its chair, should be appointed with regard to their knowledge and experience in accounting, auditing and risk management matters, both financial and non-financial. Complies 40. Listed companies should have a unit in charge of the internal audit function, under the supervision of the audit committee, to monitor the effectiveness of reporting and control systems. This unit should report functionally to the board’s non-executive chair or the chair of the audit committee. Complies 41. The head of the unit handling the internal audit function should present an annual work programme to the audit committee, for approval by this committee or the board, inform it directly of any incidents or scope limitations arising during its implementation, the results and monitoring of its recommendations, and submit an activities report at the end of each year. Complies 42. The audit committee should have the following functions over and above those legally assigned: 1. With respect to internal control and reporting systems: a) Monitor and evaluate the preparation process and the integrity of the financial and non-financial information, as well as the con­trol and management systems for financial and non-financial risks related to the company and, where appropriate, to the group – including operating, technological, legal, social, environmental, political and reputational risks or those related to corruption – reviewing compliance with regulatory requirements, the accurate demarcation of the consolidation perimeter, and the correct ap­ plication of accounting principles. b) Monitor the independence of the unit handling the internal audit function; propose the selection, appointment and removal of the head of the internal audit service; propose the service’s budget; approve or make a proposal for approval to the board of the prior­ ities and annual work programme of the internal audit unit, ensur­ ing that it focuses primarily on the main risks the company is ex­ posed to (including reputational risk); receive regular report-backs on its activities; and verify that senior management are acting on the findings and recommendations of its reports. c) Establish and supervise a mechanism that allows employees and other persons related to the company, such as directors, sharehold­ ers, suppliers, contractors or subcontractors, to report irregulari­ties of potential significance, including financial and accounting irregularities, or those of any other nature, related to the company, that they notice within the company or its group. This mechanism must guarantee confidentiality and enable communications to be made anonymously, respecting the rights of both the complainant and the accused party. d) In general, ensure that the internal control policies and systems established are applied effectively in practice. 2. With regard to the external auditor: a) Investigate the issues giving rise to the resignation of the external auditor, should this come about. b) Ensure that the remuneration of the external auditor, does not compromise its quality or independence. c) Ensure that the company notifies any change of external auditor through the CNMV, accompanied by a statement of any disagreements arising with the outgoing auditor and the reasons for the same. d) Ensure that the external auditor has a yearly meeting with the board in full to inform it of the work undertaken and developments in the company’s risk and accounting positions. Annual report 2025393 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | e) Ensure that the company and the external auditor adhere to current regulations on the provisions of non-audit services, limits on the concentration of the auditor’s business and other requirements concerning auditor independence. Complies 43. The audit committee should be empowered to meet with any company employee or manager, even ordering their appearance without the presence of another manager. Complies 44. The audit committee should be informed of any structural changes or corporate transactions the company is planning, so the committee can analyse the operation and report to the board beforehand on its economic conditions and accounting impact and, when applicable, the exchange ratio proposed. Complies 45. Risk control and management policy should identify or establish at least: a) The different types of financial and non-financial risk the company is exposed to (including operational, technological, financial, legal, social, environmental, political and reputational risks, and risks relating to corruption), with the inclusion under financial or economic risks of con­tingent liabilities and other off- balance-sheet risks. b) A risk control and management model based on different levels, of which a specialised risk committee will form part when sector regula­tions provide or the company deems it appropriate. c) The level of risk that the company considers acceptable. d) The measures in place to mitigate the impact of identified risk events should they occur. e) The internal control and reporting systems to be used to control and manage the above risks, including contingent liabilities and off- balance-sheet risks. Complies 46. Companies should establish a risk control and management function in the charge of one of the company’s internal department or units and under the direct supervision of the audit committee or some other specialised board committee. This internal department or unit should be expressly charged with the following responsibilities: a) Ensure that risk control and management systems are functioning correctly and, specifically, that major risks the company is exposed to are correctly identified, managed and quantified. b) Participate actively in the preparation of risk strategies and in key decisions about their management. c) Ensure that risk control and management systems are mitigating risks effectively in the frame of the policy drawn up by the board of directors. Complies 47. Members of the nomination and remuneration committee-or of the nomination committee and remuneration committee, if separately constituted - should be chosen procuring they have the right balance of knowledge, skills and experience for the functions they are called on to discharge. The majority of their members should be independent directors. Complies 48. Large cap companies should have formed separate nomination and remuneration committees. Complies 49. The nomination committee should consult with the company’s chair and chief executive, especially on matters relating to executive directors. When there are vacancies on the board, any director may approach the nomination committee to propose candidates that it might consider suitable. Complies 50. The remuneration committee should operate independently and have the following functions in addition to those assigned by law: a) Propose to the board the standard conditions for senior officer contracts. b) Monitor compliance with the remuneration policy set by the company. c) Periodically review the remuneration policy for directors and senior officers, including share-based remuneration systems and their application, and ensure that their individual compensation is proportionate to the amounts paid to other directors and senior officers in the company. d) Ensure that conflicts of interest do not undermine the independence of any external advice the committee engages. e) Verify the information on director and senior officers’ pay contained in corporate documents, including the annual directors’ remuneration statement. Complies 51. The remuneration committee should consult with the company’s chair and chief executive, especially on matters relating to executive directors and senior officers. Complies Annual report 2025394 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 52. The rules regarding composition and functioning of supervision and control committees should be set out in the regulations of the board of directors and aligned with those governing legally mandatory board committees as specified in the preceding sets of recommendations. They should include at least the following terms: a) Committees should be formed exclusively by non-executive directors, with a majority of independents. b) They should be chaired by independent directors. c) The board should appoint the members of such committees with regard to the knowledge, skills and experience of its directors and each committee’s terms of reference; discuss their proposals and reports; and provide report-backs on their activities and work at the first board plenary following each committee meeting. d) They may engage external advice, when they feel it necessary for the discharge of their functions. e) Meeting proceedings should be minuted and a copy made available to all board members. Complies 53. The task of supervising compliance with the policies and rules of the company in the environmental, social and corporate governance areas, and internal rules of conduct, should be assigned to one board committee or split between several, which could be the audit committee, the nomination committee, a committee specialised in sustainability or corporate social responsibility, or a dedicated committee established by the board under its powers of self-organisation. Such a committee should be made up solely of non-executive directors, the majority being independent and specifically assigned the following minimum functions. Complies 54. The minimum functions referred to in the previous recommendation are as follows: a) Monitor compliance with the company’s internal codes of conduct and corporate governance rules, and ensure that the corporate culture is aligned with its purpose and values. b) Monitor the implementation of the general policy regarding the disclosure of economic-financial, non-financial and corporate information, as well as communication with shareholders and investors, proxy advisors and other stakeholders. Similarly, the way in which the entity communicates and relates with small and medium-sized shareholders should be monitored. c) Periodically evaluate the effectiveness of the company’s corporate governance system and environmental and social policy, to confirm that it is fulfilling its mission to promote the corporate interest and catering, as appropriate, to the legitimate interests of remaining stakeholders. d) Ensure the company’s environmental and social practices are in accordance with the established strategy and policy. e) Monitor and evaluate the company’s interaction with its stakeholder groups. Complies 55. Environmental and social sustainability policies should identify and include at least: a) The principles, commitments, objectives and strategy regarding shareholders, employees, clients, suppliers, social welfare issues, the environment, diversity, fiscal responsibility, respect for human rights and the prevention of corruption and other illegal conducts. b) The methods or systems for monitoring compliance with policies, associated risks and their management. c) The mechanisms for supervising non-financial risk, including that related to ethical aspects and business conduct. d) Channels for stakeholder communication, participation and dialogue. e) Responsible communication practices that prevent the manipulation of information and protect the company’s honour and integrity. Complies 56. Director remuneration should be sufficient to attract and retain directors with the desired profile and compensate the commitment, abilities and responsibility that the post demands, but not so high as to compromise the independent judgement of non-executive directors. Complies 57. Variable remuneration linked to the company and the director’s performance, the award of shares, options or any other right to acquire shares or to be remunerated on the basis of share price movements, and membership of long-term savings schemes such as pension plans, retirement accounts or any other retirement plan should be confined to executive directors. The company may consider the share-based remuneration of non- executive directors provided they retain such shares until the end of their mandate. The above condition will not apply to any shares that the director must dispose of to defray costs related to their acquisition. Complies 58. In the case of variable awards, remuneration policies should include limits and technical safeguards to ensure they reflect the professional performance of the beneficiaries and not simply the general progress of the markets or the company’s sector, or circumstances of that kind. In particular, variable remuneration items should meet the following conditions: a) Be subject to predetermined and measurable performance criteria that factor the risk assumed to obtain a given outcome. b) Promote the long-term sustainability of the company and include non-financial criteria that are relevant for the company’s long-term value, such as compliance with its internal rules and procedures and its risk control and management policies. Annual report 2025395 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | c) Be focused on achieving a balance between the achievement of short, medium and long-term targets, such that performance- related pay rewards ongoing achievement, maintained over sufficient time to appreciate its contribution to long-term value creation. This will ensure that performance measurement is not based solely on one off, occasional or extraordinary events. Complies 59. The payment of the variable components of remuneration is subject to sufficient verification that previously established performance, or other, conditions have been effectively met. Entities should include in their annual directors’ remuneration report the criteria relating to the time required and methods for such verification, depending on the nature and characteristics of each variable component. Additionally, entities should consider establishing a reduction clause (‘malus’) based on deferral for a sufficient period of the payment of part of the variable components that implies total or partial loss of this remuneration in the event that prior to the time of payment an event occurs that makes this advisable. Complies 60. Remuneration linked to company earnings should bear in mind any qualifications stated in the external auditor’s report that reduce their amount. Complies 61. A major part of executive directors’ variable remuneration should be linked to the award of shares or financial instruments whose value is linked to the share price. Complies 62. Following the award of shares, options or financial instruments corresponding to the remuneration schemes, executive directors should not be able to transfer their ownership or exercise them until a period of at least three years has elapsed. Except for the case in which the director maintains, at the time of the transfer or exercise, a net economic exposure to the variation in the price of the shares for a market value equivalent to an amount of at least twice his or her fixed annual remuneration through the ownership of shares, options or other financial instruments. The foregoing shall not apply to the shares that the director needs to dispose of to meet the costs related to their acquisition or, upon favourable assessment of the nomination and remuneration committee to address an extraordinary situation. Complies 63. Contractual arrangements should include provisions that permit the company to reclaim variable components of remuneration when payment was out of step with the director’s actual performance or based on data subsequently found to be misstated. Complies 64. Termination payments should not exceed a fixed amount equivalent to two years of the director’s total annual remuneration and should not be paid until the company confirms that he or she has met the predetermined performance criteria. For the purposes of this recommendation, payments for contractual termination include any payments whose accrual or payment obligation arises as a consequence of or on the occasion of the termination of the contractual relationship that linked the director with the company, including previously unconsolidated amounts for long-term savings schemes and the amounts paid under post- contractual non-compete agreements. Complies List whether any directors voted against or abstained from voting on the approval of this Report. Yes o  No þ I declare that the information included in this statistical annex are the same and are consistent with the descriptions and information included in the annual corporate governance report published by the company. Annual report 2025396 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 9.3 References on compliance with recommendations #### of Spain's Corporate Governance Code | | | | | --- | --- | --- | | | | | | Recommendation | Comply / Explain | Information | | 1 | Comply | See section [3.2 'Shareholder rights'](#i9ecadc1fbc9f4691a7c73ad08498072a_9882). | | 2 | Not applicable | See ['Other conflicts of interest'](#i075e886f0d8442048a3d644b285b6a1f_9838) in section 4.12 and section [2.3 'Significant shareholders'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_475). | | 3 | Comply | See section [3.1 'Shareholder communication and engagement'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_490). | | 4 | Comply | See section [3.1 'Shareholder communication and engagement'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_490). | | 5 | Comply | See section [2.2 'Authority to increase capital'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_472). | | 6 | Comply | See sections [4.5 'Audit committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_535), [4.6 'Nomination committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538), [4.7](#i6ecb2a0d58d04b53bfadfa2a833efaa7_541) ['Remuneration committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_541), [4.8 'Risk supervision, regulation and compliance committee](#i6ecb2a0d58d04b53bfadfa2a833efaa7_544) [activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_544), [4.9 'Responsible banking, sustainability and culture committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_547), [4.10](#i6ecb2a0d58d04b53bfadfa2a833efaa7_550) ['Innovation and technology committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_550) and [4.12 'Related-party transactions and conflicts](#i6ecb2a0d58d04b53bfadfa2a833efaa7_556) [of interest'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_556) . | | 7 | Comply | See ['Shareholder engagement in 2025'](#i0a320c1a30f14f91aecc68d4b8db9d34_23682) in section 3.1, ['Participation at general meetings'](#i9ecadc1fbc9f4691a7c73ad08498072a_9888) in section 3.2 and section [3.5 'Our next AGM in 2026'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_502). | | 8 | Comply | See ['Board regulation'](#ifb2b99624daa4646a71a5fe829ff7983_75872) in section 4.3 and sections [4.5 'Audit committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_535) and [8.5](#i6ecb2a0d58d04b53bfadfa2a833efaa7_610) ['Monitoring of system functioning'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_610). | | 9 | Comply | See ['Participation at general meetings'](#i9ecadc1fbc9f4691a7c73ad08498072a_9888) in section 3.2. | | 10 | Comply | See ['Supplement to the notice and proposals resolutions'](#i9ecadc1fbc9f4691a7c73ad08498072a_9889) in section 3.2. | | 11 | Not applicable | See section [3.5 'Our next AGM in 2026'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_502). | | 12 | Comply | See section [4.3 'Board functioning and effectiveness'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_529). | | 13 | Comply | See ['Size'](#i54aff41f6ba94eecbadbaed58547f245_2700) in section 4.2. | | 14 | Comply | See ['Diversity and skills'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_517) and ['Election, appointment, re-election and succession of directors'](#icd394c0decc149fbb6ec8e814f8464ca_6275) in section 4.2, ['Board regulation'](#ifb2b99624daa4646a71a5fe829ff7983_75872) in section 4.3, [4.6 'Nomination committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538) and ['Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) chapter. | | 15 | Comply | See section [4.2 'Board composition'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_511). | | 16 | Comply | See ['Composition by type of director'](#i54aff41f6ba94eecbadbaed58547f245_2701) in section 4.2. | | 17 | Comply | See ['Composition by type of director'](#i54aff41f6ba94eecbadbaed58547f245_2701) and ['Election, appointment, re-election and succession of directors'](#icd394c0decc149fbb6ec8e814f8464ca_6275) in section 4.2. | | 18 | Comply | See ['Corporate website'](#i0a320c1a30f14f91aecc68d4b8db9d34_8310) in section 3.1, section [4.1 'Our directors'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_508) and '[Tenure and equity ownership](#i3469a4b05f164a2d92462c398a9ec6eb_0-0-20-12-3384596)' in section 4.2. | | 19 | Not applicable | See ['Composition by type of director'](#i54aff41f6ba94eecbadbaed58547f245_2701) in section 4.2. | | 20 | Comply | See ['Election, appointment, re-election and succession of directors'](#icd394c0decc149fbb6ec8e814f8464ca_6275) in section 4.2. | | 21 | Comply | See ['Election, appointment, re-election and succession of directors'](#icd394c0decc149fbb6ec8e814f8464ca_6275) in section 4.2. | | 22 | Comply | See ['Election, appointment, re-election and succession of directors'](#icd394c0decc149fbb6ec8e814f8464ca_6275) in section 4.2, ['Board regulation'](#ifb2b99624daa4646a71a5fe829ff7983_75872) in section 4.3 and [4.6 'Nomination committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538). | | 23 | Comply | See ['Election, appointment, re-election and succession of directors'](#icd394c0decc149fbb6ec8e814f8464ca_6275) in section 4.2. | | 24 | Comply | See ['Election, appointment, re-election and succession of directors'](#icd394c0decc149fbb6ec8e814f8464ca_6275) in section 4.2 and ['Board regulation'](#ifb2b99624daa4646a71a5fe829ff7983_78578) in section 4.3. | | 25 | Comply | See ['Attendance at board and committee meetings and dedication to the performance of duties'](#ifb2b99624daa4646a71a5fe829ff7983_75645) in section 4.3 and [4.6 'Nomination committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538). | | 26 | Comply | See ['Board operation'](#ifb2b99624daa4646a71a5fe829ff7983_26386) and ['Attendance at board and committee meetings and dedication to the](#ifb2b99624daa4646a71a5fe829ff7983_75645) [performance of duties'](#ifb2b99624daa4646a71a5fe829ff7983_75645) in section 4.3. | | 27 | Comply | See ['Board operation'](#ifb2b99624daa4646a71a5fe829ff7983_26386), ['Committee operation'](#ifb2b99624daa4646a71a5fe829ff7983_26387) and ['Attendance at board and committee meetings and](#ifb2b99624daa4646a71a5fe829ff7983_75645) [dedication to the performance of duties'](#ifb2b99624daa4646a71a5fe829ff7983_75645) in section 4.3. | | 28 | Comply | See ['Board regulation'](#ifb2b99624daa4646a71a5fe829ff7983_78578) and ['Board operation'](#ifb2b99624daa4646a71a5fe829ff7983_26386) in section 4.3. | | 29 | Comply | See ['Board operation'](#ifb2b99624daa4646a71a5fe829ff7983_26386) and ['Committee operation'](#ifb2b99624daa4646a71a5fe829ff7983_26387) in section 4.3. | | 30 | Comply | See ['Director training and induction programmes'](#ifb2b99624daa4646a71a5fe829ff7983_26388) in section 4.3. | | 31 | Comply | See ['Board regulation'](#ifb2b99624daa4646a71a5fe829ff7983_78578) and ['Board operation'](#ifb2b99624daa4646a71a5fe829ff7983_26386) in section 4.3. | | 32 | Comply | See section [3.1 'Shareholder communication and engagement'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_490) and [4.6 'Nomination committee activities in](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538) [2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538). | | 33 | Comply | See section [4.3 'Board functioning and effectiveness'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_529). | | 34 | Comply | See ['Lead Independent Director'](#ifb2b99624daa4646a71a5fe829ff7983_26391) in section 4.3. | | 35 | Comply | See ['Secretary of the board'](#ifb2b99624daa4646a71a5fe829ff7983_79111) in section 4.3. | | 36 | Comply | See ['Board effectiveness review in 2025'](#ifb2b99624daa4646a71a5fe829ff7983_75730) in section 4.3. | | 37 | Comply | See ['Board regulation'](#ifb2b99624daa4646a71a5fe829ff7983_78578) in section 4.3 and ['Composition'](#i6a9bae7908da401b8a93619d32c6d81b_0-0-1-1-3384596) in section 4.4. | | 38 | Comply | See ['Committee operation'](#ifb2b99624daa4646a71a5fe829ff7983_26387) in section 4.3 and section [4.4 'Executive committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_532). | | 39 | Comply | See ['Board regulation'](#ifb2b99624daa4646a71a5fe829ff7983_78578) in section 4.3 and ['Composition'](#i90b36599b3734855ac64c22d3b002789_0-0-1-1-3384596) in section 4.5. | | 40 | Comply | See sections [4.5 'Audit committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_535), [8.1 'Control environment'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_598) and [8.5 'Monitoring of](#i6ecb2a0d58d04b53bfadfa2a833efaa7_610) [system functioning'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_610) . | Annual report 2025397 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | Recommendation | Comply / Explain | Information | | 41 | Comply | See ['Board regulation'](#ifb2b99624daa4646a71a5fe829ff7983_78578) in section 4.3, [4.5 'Audit committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_535) and section [8.5 'Monitoring of](#i6ecb2a0d58d04b53bfadfa2a833efaa7_610) [system functioning'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_610). | | 42 | Comply | See ['Board regulation'](#ifb2b99624daa4646a71a5fe829ff7983_78578) in section 4.3 and [4.5 'Audit committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_535). | | 43 | Comply | See ['Committee operation'](#ifb2b99624daa4646a71a5fe829ff7983_26387) in section 4.3. | | 44 | Comply | See [4.5 'Audit committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_535). | | 45 | Comply | See ['Board regulation'](#ifb2b99624daa4646a71a5fe829ff7983_78578) in section 4.3, [4.5 'Audit committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_535), [4.8 'Risk supervision,](#i6ecb2a0d58d04b53bfadfa2a833efaa7_544) [regulation and compliance committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_544) and the ' [Risk management and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) ' chapter. | | 46 | Comply | See section [4.5 'Audit committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_535), [4.8 'Risk supervision, regulation and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_544) [committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_544) and the ' [Risk management and compliance'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) chapter. | | 47 | Comply | See ['Composition'](#i2a633dc0ca7840fababc474b6e8c4403_0-0-1-1-3384596) in section 4.6 and ['Composition'](#i26d40df5c9cd49ce9c91cc5e25b6af50_0-0-1-1-3384596) in section 4.7. | | 48 | Comply | See ['Board committees'](#ifb2b99624daa4646a71a5fe829ff7983_75873) in section 4.3. | | 49 | Comply | See [4.6 'Nomination committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538). | | 50 | Comply | See sections [4.6 'Nomination committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538) and [4.7 'Remuneration committee activities in](#i6ecb2a0d58d04b53bfadfa2a833efaa7_541) [2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_541). | | 51 | Comply | See [4.7 'Remuneration committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_541). | | 52 | Comply | See ['Board regulation'](#ifb2b99624daa4646a71a5fe829ff7983_78578) and ['Committee operation'](#ifb2b99624daa4646a71a5fe829ff7983_26387) in section 4.3 and sections [4.8 'Risk supervision,](#i6ecb2a0d58d04b53bfadfa2a833efaa7_544) [regulation and compliance committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_544)  and [4.9 'Responsible banking, sustainability and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_547) [culture committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_547). | | 53 | Comply | See ['Board regulation'](#ifb2b99624daa4646a71a5fe829ff7983_78578) in section 4.3, [4.6 'Nomination committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538), [4.8 'Risk supervision,](#i6ecb2a0d58d04b53bfadfa2a833efaa7_544) [regulation and compliance committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_544) and [4.9 'Responsible banking, sustainability and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_547) [culture committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_547). | | 54 | Comply | See ['Board regulation'](#ifb2b99624daa4646a71a5fe829ff7983_78578) in section 4.3, [4.6 'Nomination committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_538), [4.8 'Risk supervision,](#i6ecb2a0d58d04b53bfadfa2a833efaa7_544) [regulation and compliance committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_544) and [4.9 'Responsible banking, sustainability and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_547) [culture committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_547). | | 55 | Comply | See [4.9 'Responsible banking, sustainability and culture committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_547) and ['Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) chapter. | | 56 | Comply | See sections [6.2 'Remuneration of directors for supervisory and collective decision-making duties: policy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_568) [applied in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_568), [6.3 'Remuneration of directors for executive duties'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571) and [6.4 'Directors' remuneration](#i6ecb2a0d58d04b53bfadfa2a833efaa7_574) [policy for 2026, 2027 and 2028'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_574). | | 57 | Comply | See sections [6.2 'Remuneration of directors for supervisory and collective decision-making duties: policy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_568) [applied in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_568), [6.3 'Remuneration of directors for executive duties'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571) and [6.4 'Directors' remuneration](#i6ecb2a0d58d04b53bfadfa2a833efaa7_574) [policy for 2026, 2027 and 2028'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_574). | | 58 | Comply | See sections [6.3 'Remuneration of directors for executive duties'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571) and [6.4 'Directors' remuneration policy for](#i6ecb2a0d58d04b53bfadfa2a833efaa7_574) [2026, 2027 and 2028'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_574). | | 59 | Comply | See section [6.3 'Remuneration of directors for executive duties'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571). | | 60 | Comply | See section [6.3 'Remuneration of directors for executive duties'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571). | | 61 | Comply | See sections [6.3 'Remuneration of directors for executive duties'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571) and [6.4 'Directors' remuneration policy for](#i6ecb2a0d58d04b53bfadfa2a833efaa7_574) [2026, 2027 and 2028'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_574). | | 62 | Comply | See sections [4.7 'Remuneration committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_541), [6.3 'Remuneration of directors for executive](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571) [duties'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571) and [6.4 'Directors' remuneration policy for 2026, 2027 and 2028'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_574). | | 63 | Comply | See sections [6.3 'Remuneration of directors for executive duties'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571) and [6.4 'Directors' remuneration policy for](#i6ecb2a0d58d04b53bfadfa2a833efaa7_574) [2026, 2027 and 2028'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_574). | | 64 | Comply | See sections [6.1 'Principles of the remuneration policy'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_565) and [6.3 'Remuneration of directors for executive](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571) [duties'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571) and [6.4 'Directors' remuneration policy for 2026, 2027 and 2028'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_574). | Annual report 2025398 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 9.4 Reconciliation to the CNMV’s remuneration report model | | | | | --- | --- | --- | | | | | | Section in the CNMV model | Included in statistical report | Further information elsewhere and comments | | A. Remuneration policy for the present fiscal year | | | | A.1 | No | See section [6.4 'Directors' remuneration policy for 2026, 2027 and 2028'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_574): A.1.1, A.1.2, A.1.3, A.1.4, A.1.5, A.1.6, A.1.7, A.1.8, A.1.9, A.1.10, A.1.11 (Note ['5. Remuneration and other benefits paid to the Bank’s directors and senior](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1009) [managers'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1009) to the consolidated financial statements), A.1.12. See also sections [4.7 'Remuneration committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_541) and [6.5 'Preparatory work and decision-making for](#i6ecb2a0d58d04b53bfadfa2a833efaa7_577) [the remuneration policy; remuneration committee involvement'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_577) for A.1.1 y A.1.6. See ['L. Summary of link between risk, performance and remuneration'](#i4d2b0c05631240c2b6c2db58efb5b586_35912) in section 6.3. | | A.2 | No | See section [6.4 'Directors' remuneration policy for 2026, 2027 and 2028'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_574). | | A.3 | No | See section [6.4 'Directors' remuneration policy for 2026, 2027 and 2028'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_574). See introduction. | | A.4 | No | See section [6.5 'Preparatory work and decision-making for the remuneration policy; remuneration committee](#i6ecb2a0d58d04b53bfadfa2a833efaa7_577) [involvement'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_577). | | B. Overall summary of application of the remuneration policy over the last fiscal year | | | | B.1 | No | For B.1.1, see sections [6.1 'Principles of the remuneration policy'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_565), [6.2 'Remuneration of directors for supervisory](#i6ecb2a0d58d04b53bfadfa2a833efaa7_568) [and collective decision-making duties: policy applied in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_568). and [6.3 'Remuneration of directors](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571) [for executive duties'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571). For B.1.2 y B.1.3 (not applicable) see section [6.5 'Preparatory work and decision-making for the remuneration policy;](#i6ecb2a0d58d04b53bfadfa2a833efaa7_577) [remuneration committee involvement'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_577). | | B.2 | No | See ['L. Summary of link between risk, performance and remuneration'](#i4d2b0c05631240c2b6c2db58efb5b586_35913) in section 6.3. | | B.3 | No | See sections [6.1 'Principles of the remuneration policy'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_565), [6.2 'Remuneration of directors for supervisory and collective](#i6ecb2a0d58d04b53bfadfa2a833efaa7_568) [decision-making duties: policy applied in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_568) and [6.3 'Remuneration of directors for executive duties'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571). | | B.4 | No | See section [6.5 'Preparatory work and decision-making for the remuneration policy; remuneration committee](#i6ecb2a0d58d04b53bfadfa2a833efaa7_577) [involvement'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_577). | | B.5 | No | See section [6.2 'Remuneration of directors for supervisory and collective decision-making duties: policy applied in](#i6ecb2a0d58d04b53bfadfa2a833efaa7_568) [2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_568) and [6.3 'Remuneration of directors for executive duties'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571). | | B.6 | No | See ['A. Gross annual salary'](#i4d2b0c05631240c2b6c2db58efb5b586_35914) in section 6.3. | | B.7 | No | See ['B. Variable remuneration'](#i4d2b0c05631240c2b6c2db58efb5b586_35915) in section 6.1, as well as sections [6.2 'Remuneration of directors for supervisory](#i6ecb2a0d58d04b53bfadfa2a833efaa7_568) [and collective decision-making duties: policy applied in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_568) and [6.3 'Remuneration of directors](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571) [for executive duties'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571). | | B.8 | No | Not applicable. | | B.9 | No | See ['C. Main features of the benefit plans'](#i4d2b0c05631240c2b6c2db58efb5b586_35909) in section 6.3. | | B.10 | No | See ['D. Other remuneration'](#i4d2b0c05631240c2b6c2db58efb5b586_35910) in section 6.3. | | B.11 | No | See ['Terms and conditions of executive director contracts and other provisions applicable to all directors'](#i78a5d5e751974251a44d4fe57c9fc919_44313) in section 6.4. | | B.12 | No | See [' F. Remuneration of board members as representatives of the Bank'](#i4d2b0c05631240c2b6c2db58efb5b586_35911) in section 6.3. | | B.13 | No | See note ['5. Remuneration and other benefits paid to the Bank’s directors and senior managers'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1009) to the consolidated financial statements. | | B.14 | No | See ['E. Insurance and other remuneration and benefits in kind'](#i78a5d5e751974251a44d4fe57c9fc919_44312) in section 6.4. | | B.15 | No | See ['F. Remuneration of board members as representatives of the Bank'](#i4d2b0c05631240c2b6c2db58efb5b586_35911) in section 6.3. | | B.16 | No | No remuneration for this component. | | C. Breakdown of the individual remuneration of directors | | | | C | Yes | See section [9.5 'Statistical information on remuneration required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_634). | | C.1 a) i) | Yes | See section [9.5 'Statistical information on remuneration required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_634). | | C.1 a) ii) | Yes | See section [9.5 'Statistical information on remuneration required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_634). | | C.1 a) iii) | Yes | See section [9.5 'Statistical information on remuneration required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_634). | | C.1 a) iii) | Yes | See section [9.5 'Statistical information on remuneration required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_634). | | C.1 b) i) | Yes | See section [9.5 'Statistical information on remuneration required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_634). | | C.1 b) ii) | No | No remuneration for this component. | | C.1 b) iii) | No | No remuneration for this component. | | C.1 b) iv) | No | No remuneration for this component. | | C.1 c) | Yes | See section [9.5 'Statistical information on remuneration required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_634). | | C.2 | Yes | See section [9.5 'Statistical information on remuneration required by the CNMV'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_634). | | D. Other information of interest | | | | D | No | See section [4.7 'Remuneration committee activities in 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_541) | Annual report 2025399 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 9.5 Statistical information on remuneration required by the CNMV B. OVERALL SUMMARY OF HOW REMUNERATION POLICY WAS APPLIED DURING THE YEAR ENDED B.4 Report on the result of the consultative vote at the general shareholders’ meeting on remuneration in the previous year, indicating the number of votes in favour, votes against, abstentions and blank ballots: | | | | | --- | --- | --- | | | | | | | Number | % of total | | Votes cast | 10,380,448,441 | 100.00% | | | | | | --- | --- | --- | | | | | | | Number | % of votes cast | | Votes in favour | 9,567,416,155 | 92.17% | | Votes against | 689,902,170 | 6.65% | | Blank | 3,636,373 | 0.04% | | Abstentions | 119,493,743 | 1.15% | C. ITEMISED INDIVIDUAL REMUNERATION ACCRUED BY EACH DIRECTOR | | | | | --- | --- | --- | | | | | | Directors | Type | Period of accrual in year 2025 | | Ana Botín-Sanz de Sautuola y O’Shea | Executive Chair | From 01/01/2025 to 31/12/2025 | | Héctor Grisi Checa | CEO | From 01/01/2025 to 31/12/2025 | | José Antonio Álvarez Álvarez | Vice-Chair | From 01/01/2025 to 31/12/2025 | | Glenn H. Hutchins | Lead independent director | From 01/01/2025 to 31/12/2025 | | Homaira Akbari | Independent | From 01/01/2025 to 31/12/2025 | | Javier Botín-Sanz de Sautuola y O’Shea | Other external | From 01/01/2025 to 31/12/2025 | | Sol Daurella Comadrán | Independent | From 01/01/2025 to 31/12/2025 | | Henrique de Castro | Independent | From 01/01/2025 to 31/12/2025 | | Gina Díez Barroso | Independent | From 01/01/2025 to 31/12/2025 | | Luis Isasi Fernández de Bobadilla | Other External | From 01/01/2025 to 31/12/2025 | | Belén Romana García | Independent | From 01/01/2025 to 31/12/2025 | | Pamela Walkden | Independent | From 01/01/2025 to 31/12/2025 | | Germán de la Fuente | Independent | From 01/01/2025 to 31/12/2025 | | Juan Carlos Barrabés Cónsul | Independent | From 01/01/2025 to 31/12/2025 | | Antonio Francesco Weiss | Independent | From 01/01/2025 to 31/12/2025 | Annual report 2025400 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | C.1 Complete the following tables on individual remuneration of each director (including the remuneration for exercising executive functions) accrued during the year. a) Remuneration from the reporting company: i) Remuneration in cash (thousand euros) | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Name | Fixed remuneration | Per diem allowances | Remuneration for membership of Board's committees | Salary | Short-term variable remuneration | Long-term variable remuneration | Severance pay | Other grounds | Total year 2025 | Total year 2024 | | Ana Botín-Sanz de Sautuola y O’Shea | 101 | 44 | 204 | 3,435 | 3,092 | 1,172 | — | 399 | 8,447 | 7,938 | | Héctor Grisi Checa | 101 | 44 | 204 | 3,150 | 2,134 | — | — | — | 5,633 | 5,147 | | José Antonio Álvarez Álvarez | 132 | 67 | 248 | — | — | 780 | — | 1,762 | 2,989 | 3,657 | | Glenn H. Hutchins | 412 | 78 | 210 | — | — | — | — | — | 700 | 700 | | Homaira Akbari | 101 | 81 | 102 | — | — | — | — | — | 284 | 285 | | Javier Botín-Sanz de Sautuola y O’Shea | 101 | 36 | — | — | — | — | — | — | 137 | 144 | | Sol Daurella Comadrán | 101 | 75 | 138 | — | — | — | — | — | 314 | 292 | | Henrique de Castro | 101 | 80 | 102 | — | — | — | — | — | 283 | 300 | | Gina Díez Barroso | 101 | 63 | 58 | — | — | — | — | — | 222 | 225 | | Luis Isasi Fernández de Bobadilla | 101 | 74 | 248 | — | — | — | — | 1,000 | 1,423 | 1,440 | | Belén Romana García | 101 | 107 | 373 | — | — | — | — | — | 581 | 599 | | Pamela Walkden | 101 | 93 | 189 | — | — | — | — | — | 383 | 381 | | Germán de la Fuente | 101 | 83 | 160 | — | — | — | — | — | 344 | 338 | | Juan Carlos Barrabés Cónsul | 101 | 71 | 87 | — | — | — | — | — | 259 | 128 | | Antonio Francesco Weiss | 101 | 50 | 29 | — | — | — | — | — | 180 | 72 | | | | --- | | | | Comments (Not included in the electronic submission to the CNMV) | | The remuneration of Luis Isasi includes EUR 1,000 thousand for his role as non-executive Chair of the Santander España business unit and for attending its board and committee meetings. The variable remuneration only includes amounts related to the position of executive director of Banco Santander S.A. | Annual report 2025401 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | ii) Table of changes in share-based remuneration schemes and gross profit from consolidated shares or financial instruments | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | Financial instruments at start of year 2025 | | | Financial instruments granted during 2025 year | | | Financial instruments consolidated during 2025 | | | | | Instruments matured but not exercised | | Financial instruments at end of year 2025 | | | Name | Name of Plan | No. of instruments | No. of equivalent shares | | No. of instruments | No. of equivalent shares | | No. of instruments | No. of equivalent shares / handed over | Price of the consolidated shares | Gross profit from shares handed over or consolidated financial instruments (EUR thousand) | | No. of instruments | | No. of instruments | No. of equivalent shares | | Ana Botín- Sanz de Sautuola y O’Shea | 5th cycle of deferred variable remuneration plan linked to multi- year targets (2020) in shares | 37,273 | 37,273 | | — | — | | 31,048 | 31,048 | 10.261 | 319 | | 6,225 | | — | — | | 6th cycle of deferred variable remuneration plan linked to multi- year targets (2021) in shares | 355,348 | 355,348 | | — | — | | 162,750 | 162,750 | 10.261 | 1,670 | | 14,925 | | 177,673 | 177,673 | | 7th cycle of deferred variable remuneration plan linked to multi- year targets (2022) in shares | 187,001 | 187,001 | | — | — | | 71,809 | 71,809 | 10.261 | 737 | | — | | 143,617 | 143,617 | | 7th cycle (Bis) of deferred variable remuneration plan linked to multi- year targets (2022) in share options. | 503,504 | 187,001 | | — | — | | 193,346 | 71,809 | 10.261 | 1,387 | | — | | 386,691 | 143,617 | | 8th cycle of deferred variable remuneration plan linked to multi- year targets (2023) in shares | 457,686 | 457,686 | | — | — | | 114,421 | 114,421 | 10.261 | 1,174 | | — | | 343,265 | 343,265 | | 9th cycle of deferred variable remuneration plan linked to multi- year targets (2024) in shares | 497,405 | 497,405 | | — | — | | 99,481 | 99,481 | 10.261 | 1,021 | | — | | 397,924 | 397,924 | | 10th cycle of deferred variable remuneration plan linked to multi- year targets (2025) in shares | — | — | | 536,857 | 536,857 | | 195,195 | 195,195 | 10.261 | 2,003 | | — | | 341,662 | 341,662 | | Variable remuneration awarded in PagoNxt RSU (2022-2025 Plan) | 30,167 | — | | 8,187 | — | | — | — | 61.070 | — | | — | | 38,354 | 38,354 | Annual report 2025402 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | Financial instruments at start of year 2025 | | | Financial instruments granted during 2025 year | | | Financial instruments consolidated during 2025 | | | | | Instruments matured but not exercised | | Financial instruments at end of year 2025 | | | Name | Name of Plan | No. of instruments | No. of equivalent shares | | No. of instruments | No. of equivalent shares | | No. of instruments | No. of equivalent shares / handed over | Price of the consolidated shares | Gross profit from shares handed over or consolidated financial instruments (EUR thousand) | | No. of instruments | | No. of instruments | No. of equivalent shares | | Héctor Grisi Checa | 8th cycle of deferred variable remuneration plan linked to multi-year targets (2023) in shares | 297,390 | 297,390 | — | — | — | — | 74,347 | 74,347 | 10.261 | 763 | — | — | — | 223,043 | 223,043 | | 9th cycle of deferred variable remuneration plan linked to multi-year targets (2024) in shares | 327,437 | 327,437 | — | — | — | — | 65,487 | 65,487 | 10.261 | 672 | — | — | — | 261,950 | 261,950 | | 10th cycle of deferred variable remuneration plan linked to multi-year targets (2025) in shares | — | — | — | 363,717 | 363,717 | — | 134,883 | 134,883 | 10.261 | 1,384 | — | — | — | 228,834 | 228,834 | | Variable remuneration awarded in PagoNxt RSU (2023-2025 Plan) | 14,719 | — | — | 6,877 | — | — | — | — | 61.070 | — | — | — | — | 21,596 | 21,596 | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | Financial instruments at start of year 2025 | | | Financial instruments granted during 2025 year | | | Financial instruments consolidated during 2025 | | | | | Instruments matured but not exercised | | Financial instruments at end of year 2025 | | | Name | Name of Plan | No. of instruments | No. of equivalent shares | | No. of instruments | No. of equivalent shares | | No. of instruments | No. of equivalent shares / handed over | Price of the consolidated shares | Gross profit from shares handed over or consolidated financial instruments (EUR thousand) | | No. of instruments | | No. of instruments | No. of equivalent shares | | José Antonio Álvarez Álvarez | 5th cycle of deferred variable remuneration plan linked to multi-year targets (2020) in shares | 20,245 | 20,245 | | — | — | | 16,864 | 16,864 | 10.261 | 173 | | 3,381 | | — | — | | 6th cycle of deferred variable remuneration plan linked to multi-year targets (2021) in shares | 239,822 | 239,822 | | — | — | | 109,838 | 109,838 | 10.261 | 1,127 | | 10,073 | | 119,911 | 119,911 | | 7th cycle of deferred variable remuneration plan linked to multi-year targets (2022) in shares | 126,237 | 126,237 | | — | — | | 48,475 | 48,475 | 10.261 | 497 | | — | | 96,950 | 96,950 | | 7th cycle (Bis) of deferred variable remuneration plan linked to multi-year targets (2022) in share options. | 339,896 | 126,237 | | — | — | | 130,519 | 48,475 | 10.261 | 936 | | — | | 261,041 | 96,951 | | Variable remuneration awarded in PagoNxt RSU (2022 Plan) | 8,527 | — | | — | — | | — | — | 61.070 | — | | — | | 8,527 | 8,527 | Annual report 2025403 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | --- | | | | Comments (Not included in the electronic submission to the CNMV) | | n The variable remuneration only includes the amounts related to the position of executive director of Banco Santander S.A. For the construction of 'short-term variable remuneration' and 'long-term variable remuneration' information has been used the consolidation criteria of CNMV. In 2025 there was no application of malus clauses. n The variable remuneration consolidated as of the date of this report corresponds to the following plans: 1) Short-term variable remuneration: a. 40% immediate payment of variable remuneration of the tenth cycle of the deferred multi-year objectives variable remuneration plan (2025). b. First fifth deferred (12%) of variable remuneration of the ninth cycle of the deferred multi-year objectives variable remuneration plan (2024). c. Second fifth deferred (12%) of variable remuneration of the eight cycle of the deferred multi-year objectives variable remuneration plan (2023). 2) Long-term variable remuneration: a. Third deferred (first fifth subject to multi-year metrics) of variable remuneration of the seventh cycle of the deferred multi-year objectives variable remuneration plan (2022). b. Fourth deferred (second fifth subject to multiyear metrics) of variable remuneration of the sixth cycle of the deferred multi-year objectives variable remuneration plan (2021). c. Fifth deferred (third fifth subject to multiyear metrics) of variable remuneration of the fifth cycle of the deferred multi-year objectives variable remuneration plan (2020). For the purpose of calculating the hypothetical current cash value of Gross profit from shares handed over or consolidated financial instruments, the same share price used for variable remuneration 2025 has been taken, calculated with the weighted average daily volume of weighted average listing prices of Santander shares in the 30 trading sessions prior to the Friday (not inclusive) before 3 February 2026 (the date on which the board approved the 2025 bonus for executive directors), which was EUR 10.261 per share. In the case of the 2022 variable remuneration share options, the gross profit of the hypothetical consolidated instruments has been calculated as the difference between the EUR 10.261 and the exercise price of the option in that remuneration plan (EUR 3.088). n And below are the levels of achievement of the multi-year metrics of the long-term variable remuneration plans: 1) Seventh cycle of the deferred multi-year objectives variable remuneration plan (2022): 115.2% of achievement for the period 2022-2024. a. RoTE metric for 2024 year-end period at 150% of achievement. Weight of 40%. b. Relative TSR metric in 2022-2024 period at 83% of achievement. Weight of 40%. c. Sustainability metrics at 110% of achievement. Weight of 20%. 2) Sixth cycle of the deferred multi-year objectives variable remuneration plan (2021): 91.6% of achievement for the period 2021-2023. a. CET1 metric at 100% of achievement for 2023 year-end period (target 12.00%). Weight of 33.3%. b. Underlying BPA growth at 150% of achievement (target growth of 100%). Weight of 33.3%. c. TSR metric at 25% of achievement (target of 33-66 percentile). Weight of 33.3%. 3) Fifth cycle of the deferred multi-year objectives variable remuneration plan (2020): 83.3% of achievement for the period 2020-2022. a. CET1 metric at 100% of achievement for 2022 year-end period (target 12.00%). Weight of 33.3%. b. Underlying BPA growth at 150% of achievement (target growth of 10%). Weight of 33.3%. c. TSR metric at 0% of achievement (minimum target of 33% not reached). Weight of 33.3%. | Annual report 2025404 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | iii) Long-term saving systems (thousand EUR) | | | | --- | --- | | | | | Name | Remuneration from consolidation of rights to savings system | | Ana Botín-Sanz de Sautuola y O’Shea | 1,341 | | Héctor Grisi Checa | 1,120 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Contribution over the year from the company (EUR thousand) | | | | | | | | | | | | | Savings systems with consolidated economic rights | | | Savings systems with unconsolidated economic rights | | | Amount of accumulated funds (EUR thousand) | | | | | | | | | | | | | 2025 | | | 2024 | | | Name | 2025 | 2024 | | 2025 | 2024 | | Systems with consolidated economic rights | Systems with unconsolidate d economic rights | | Systems with consolidated economic rights | Systems with unconsolidate d economic rights | | Ana Botín-Sanz de Sautuola y O’Shea | 1,341 | 1,339 | | — | — | | 65,027 | — | | 54,731 | — | | Héctor Grisi Checa | 1,120 | 1,105 | | | | | 2,033 | — | | 1,299 | — | | José Antonio Álvarez Álvarez | — | — | — | — | — | — | 23,178 | — | — | 20,326 | — | iv) Details of other items (thousands of EUR) | | | | | --- | --- | --- | | | | | | Name | Item | Amount remunerated in 2025 | | Ana Botín-Sanz de Sautuola y O’Shea | Life insurance and complement | 411 | | Other remuneration | 33 | | | | | | --- | --- | --- | | | | | | Name | Item | Amount remunerated in 2025 | | Héctor Grisi Checa | Life insurance and complement | 666 | | Other remuneration | 51 | | | | | | --- | --- | --- | | | | | | Name | Item | Amount remunerated in 2025 | | José Antonio Álvarez Álvarez | Life insurance and complement | 671 | | Other remuneration | 8 | Annual report 2025405 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | b) Remuneration of the company directors for seats on the boards of other group companies: i) Remuneration in cash (thousands of EUR) | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Name | Fixed remuneration | Per diem allowances | Remuneration for membership of Board's committees | Salary | Short-term variable remuneration | Long-term variable remuneration | Severance pay | Other grounds | Total year 2025 | Total year 2024 | | Homaira Akbari | 285 | — | — | — | — | — | — | — | 285 | 296 | | Henrique de Castro | 200 | — | 15 | — | — | — | — | — | 215 | 200 | | Pamela Walkden | 115 | — | — | — | — | — | — | — | 115 | 129 | | Belén Romana García | 157 | — | | | | | | | 157 | — | | José Antonio Álvarez Álvarez | 200 | — | — | — | — | — | — | — | 200 | 383 | | | | --- | | | | Comments (Not included in the electronic submission to the CNMV) | | The variable remuneration only includes the amounts related to the position of executive director of Banco Santander S.A. | ii) Table of changes in share/based remunerations schemes and gross profit from consolidated shares of financial instruments Not applicable iii) Long term saving systems (thousand EUR) Not applicable iv) Detail of other items (thousands of EUR) Not applicable Annual report 2025406 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | c) Summary of remuneration (thousands of EUR) The summary should include the amounts corresponding to all the items of remuneration included in this report that have been accrued by the director, in thousand euros. | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Remuneration accrued in the company | | | | | Remuneration accrued in group companies | | | | | Total 2025 Company + group companies | | Name | Total cash remuneration | Gross profit on consolidated shares or financial instruments | Contribution s to the long-term savings plan | Remuneratio n for other items | Total 2025 | Total cash remuneration | Gross profit on consolidated shares or financial instruments | Contribution s to the long-term savings plan | Remuneratio n for other items | Total 2025 | | Ana Botín-Sanz de Sautuola y O’Shea | 8,447 | 8,311 | 1,341 | 444 | 18,543 | — | — | — | — | — | 18,543 | | Héctor Grisi Checa | 5,633 | 2,819 | 1,120 | 717 | 10,289 | — | — | — | — | — | 10,289 | | José Antonio Álvarez Álvarez | 2,989 | 2,733 | — | 679 | 6,401 | 200 | — | — | — | 200 | 6,601 | | Glenn H. Hutchins | 700 | — | — | — | 700 | — | — | — | — | — | 700 | | Homaira Akbari | 284 | — | — | — | 284 | 285 | — | — | — | 285 | 569 | | Javier Botín-Sanz de Sautuola y O’Shea | 137 | — | — | — | 137 | — | — | — | — | — | 137 | | Sol Daurella Comadrán | 314 | — | — | — | 314 | — | — | — | — | — | 314 | | Henrique de Castro | 283 | — | — | — | 283 | 215 | — | — | — | 215 | 498 | | Gina Díez Barroso | 222 | — | — | — | 222 | — | — | — | — | — | 222 | | Luis Isasi Fernández de Bobadilla | 1,423 | — | — | — | 1,423 | — | — | — | — | — | 1,423 | | Belén Romana García | 581 | — | — | — | 581 | 157 | — | — | — | 157 | 738 | | Pamela Walkden | 383 | — | — | — | 383 | 115 | — | — | — | 115 | 498 | | Germán de la Fuente | 344 | — | — | — | 344 | — | — | — | — | — | 344 | | Juan Carlos Barrabés Cónsul | 259 | — | — | — | 259 | — | — | — | — | — | 259 | | Antonio Francesco Weiss | 180 | — | — | — | 180 | — | — | — | — | — | 180 | | Total | 22,179 | 13,863 | 2,461 | 1,840 | 40,343 | 972 | — | — | — | 972 | 41,315 | → CNMV disclosures follow 'consolidation criteria' of executive compensation, i.e. amounts to which the executive director is entitled to receive in cash and in shares during the financial period (2025 fixed pay, plus 2025 variable upfront pay -40% of the 2025 bonus- and past deferrals from 2024, 2023, 2022,2021 and 2020 received). The 'accrual criterion' in chapter [6.3](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571) shows pay awarded in 2025 and is more accurately aligned with the actual compensation for the 2025 period, and is, therefore, what is used within the sector to follow and compare pay vs. peers. → For 2025, no increase was applied to either the director’s fixed salary or target bonus. However, in 2025, the disclosed current value of total remuneration for the Executive Chair shows an increase (+35% year-on-year), driven by three factors: 1. Due to the strong revaluation of Santander shares (EUR 10.261 in 2025 vs. EUR 4.576 in 2024, EUR 3.793 in 2023, EUR 3.088 in 2022, EUR 3.104 in 2021 and EUR 2.685 in 2020), reflecting CNMV disclosure requirements to value deferred share-based awards from prior cycles at the current Santander share price. Had the share price remained stable at 2024’s EUR 4.576, the increase in total value of Executive Chair remuneration would have been limited to +6.86%, broadly in line with the like-for-like average increase in the total workforce in Spain (+6%). Total pay accrued, which reflects more accurately 2025's actual pay, would amount to EUR 11.98\* mn for 2025, which would compare to EUR 12.13 mn in 2024 (-1%). Also, shares received in 2025 (675 thousand) are lower than the ones received in 2024 (810 thousand). See section [6.3](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571) for more detail. 2. The excellent Group’s results achieved in 2025, delivering on all our financial targets. Attributable profit reached a historical record (EUR 14,101 million), and TSR reached 132% in the year. In 2025, quantitative and qualitative objectives defining the bonus pool for the executive directors were met, resulting in a scorecard outcome of 145.5% for 2025, which is applied to the target bonus. It is also worth to note that the ratio of executive director's total remuneration to underlying attributable profit has consistently decreased every year, from 0.48% in 2013 to 0.17% in 2025 (-65%). 3. And a higher level of long-term metrics performance. 2022–2024 long-term cycle was at 115.2%, compared with the 2019–2021 low-paying cycle at 33.3% concluded in 2024. | | | | | | --- | --- | --- | --- | | | | | | | (EUR thousand) | 2025 Public disclosures | | Accrual criteria | | | +35% . | | | | | . | | | | | | --- | | | | Bonus in shares | | Bonus in cash | | Other Remuneration | | Salary | | | | --- | | | | +6.86% | | | | | | | | | | --- | --- | --- | | | | | | | 3,825 | | | Share revaluation impact vs. 2024 | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 2024 | Proforma 2025 at constant share price | | 2025 | | 2025\* | | \*Deferred variable remuneration linked to long-term objectives (at fair value) are not included as they are subject to achievement to the long term metrics for the period 2025-2027. More detail in section 6.3. | | | | | | | Annual report 2025407 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | C.2 Indicate the evolution in the last five years of the amount and percentage variation of the remuneration accrued by each of the directors of the listed company who have held this position during the year, the consolidated results the company and the average remuneration on an equivalent basis with regard to full-time employees of the company and its subsidiaries that are not directors of the listed company. | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | Directors' remuneration (EUR thousand) | 2025 | % var. 25/24 | 2024 | % var. 24/23 | 2023 | % var. 23/22 | 2022 | % var. 22/21 | 2021 | | • Executive Directors | | | | | | | | | | | Ana Botín-Sanz de Sautuola y O’Shea | 18,543 | 35% | 13,773 | 13% | 12,239 | 4% | 11,735 | (5)% | 12,288 | | Héctor Grisi Checa | 10,289 | 24% | 8,308 | 22% | 6,793 | — | — | — | — | | • External Directors 1 | | | | | | | | | | | José Antonio Álvarez Álvarez | 6,601 | 11% | 5,946 | 3% | 5,775 | (40)% | 9,575 | (2)% | 9,728 | | Glenn H. Hutchins | 700 | — | 700 | 88% | 372 | — | 10 | — | — | | Homaira Akbari | 569 | (2)% | 581 | 1% | 576 | (5)% | 605 | 31% | 461 | | Javier Botín-Sanz de Sautuola y O’Shea | 137 | (5)% | 144 | 5% | 137 | 6% | 129 | — | 129 | | Sol Daurella Comadrán | 314 | 8% | 292 | 17% | 249 | 8% | 230 | (4)% | 239 | | Henrique de Castro | 498 | — | 500 | 3% | 484 | 5% | 461 | 45% | 319 | | Gina Díez Barroso | 222 | (1)% | 225 | 7% | 211 | 23% | 172 | 32% | 130 | | Luis Isasi Fernández de Bobadilla 2 | 1,423 | (1)% | 1,440 | 2% | 1,417 | — | 1,412 | — | 1,406 | | Belén Romana García | 738 | 23% | 599 | 5% | 572 | 4% | 549 | 3% | 533 | | Pamela Walkden | 498 | (2)% | 510 | 3% | 493 | 5% | 470 | 38% | 339 | | Germán de la Fuente | 344 | 2% | 338 | 25% | 271 | — | 137 | — | — | | Juan Carlos Barrabés Cónsul | 259 | 102% | 128 | — | — | — | — | — | — | | Antonio Francesco Weiss | 180 | 150% | 72 | — | — | — | — | — | — | | Company’s performance | | | | | | | | | | | Consolidated results of the Group 3 (EUR mn) | 20,867 | 10% | 19,027 | 16% | 16,459 | 8% | 15,250 | 5% | 14,547 | | Group employees' average remuneration4 (EUR thousand) | 62 | 1% | 61 | 5% | 58 | 3% | 56 | 1% | 56 | | Annual increase of employees' average remuneration in Spain on a like for like basis | — | 6% | — | — | — | — | — | — | — | → CNMV disclosures follow 'consolidation criteria' of executive compensation, i.e. amounts to which the executive director is entitled to receive in cash and in shares during the financial period (2025 fixed pay, plus 2025 variable upfront pay -40% of the 2025 bonus- and past deferrals from 2024, 2023, 2022,2021 and 2020 received). The 'accrual criterion' in chapter [6.3](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571) shows pay awarded in 2025 and is more accurately aligned with the actual compensation for the 2025 period, and is, therefore, what is used within the sector to follow and compare pay vs. peers. → For 2025, no increase was applied to either the director’s fixed salary or target bonus. However, in 2025, the disclosed current value of total remuneration for the Executive Chair shows an increase (+35% year-on-year), driven by three factors: 1. Due to the strong revaluation of Santander shares (EUR 10.261 in 2025 vs. EUR 4.576 in 2024, EUR 3.793 in 2023, EUR 3.088 in 2022, EUR 3.104 in 2021 and EUR 2.685 in 2020), reflecting CNMV disclosure requirements to value deferred share-based awards from prior cycles at the current Santander share price. Had the share price remained stable at 2024’s EUR 4.576, the increase in total value of Executive Chair remuneration would have been limited to +6.86%, broadly in line with the like-for-like average increase in the total workforce in Spain (+6%). Total pay accrued, which reflects more accurately 2025's actual pay, would amount to EUR 11.98\* mn for 2025, which would compare to EUR 12.13 mn in 2024 (-1%). Also, shares received in 2025 (675 thousand) are lower than the ones received in 2024 (810 thousand). See section [6.3](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571) for more detail. 2. The excellent Group’s results achieved in 2025, delivering on all our financial targets. Attributable profit reached a historical record (EUR 14,101 million), and TSR reached 132% in the year. In 2025, quantitative and qualitative objectives defining the bonus pool for the executive directors were met, resulting in a scorecard outcome of 145.5% for 2025, which is applied to the target bonus. It is also worth to note that the ratio of executive director's total remuneration to underlying attributable profit has consistently decreased every year, from 0.48% in 2013 to 0.17% in 2025 (-65%). 3. And a higher level of long-term metrics performance. 2022–2024 long-term cycle was at 115.2%, compared with the 2019–2021 low-paying cycle at 33.3% concluded in 2024. | | | | | | --- | --- | --- | --- | | | | | | | (EUR thousand) | 2025 Public disclosures | | Accrual criteria | | | +35% . | | | | | . | | | | | | --- | | | | Bonus in shares | | Bonus in cash | | Other Remuneration | | Salary | | | | --- | | | | +6.86% | | | | | | | | | | --- | --- | --- | | | | | | | 3,825 | | | Share revaluation impact vs. 2024 | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 2024 | Proforma 2025 at constant share price | | 2025 | | 2025\* | | \*Deferred variable remuneration linked to long-term objectives (at fair value) are not included as they are subject to achievement to the long term metrics for the period 2025-2027. More detail in section 6.3. | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | 2025 | % var. 25/24 | 2024 | % var. 24/23 | 2023 | % var. 23/22 | 2022 | % var. 22/21 | 2021 | | Directors' remuneration (accrued criteria) | | | | | | | | | | | Ana Botín-Sanz de Sautuola y O'Shea | 11,977 | (1)% | 12,127 | 5% | 11,544 | 5% | 11,001 | (4%) | 11,435 | | Héctor Grisi Checa | 9,489 | 4% | 9,137 | 11% | 8,257 | — | — | — | — | Annual report 2025408 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | --- | | | | Comments (Not included in the electronic submission to the CNMV) | | n Notes on evolutive table: 1. Non-executive directors' remuneration fluctuations are caused by joining or leaving the board of directors and the difference in the amount of meetings they assist during the year. Hence there is no correlation between their remuneration and the company performance. 2. The remuneration of Luis Isasi includes EUR 1,000 thousand for his role as non-executive Chair of the Santander España business unit and for attending its board and committee meetings. 3. Group operating profit/(loss) before tax. 4. Group employee's average remuneration includes all concepts. Full-time equivalent data. Variable remuneration data accrued in the current year. n The variable remuneration only includes the amounts related to the position of executive director of Banco Santander S.A. For the construction of 'short- term variable remuneration' and 'long-term variable remuneration' information has been used the consolidation criteria of CNMV. In 2025 there was no application of malus clauses. n Total remuneration of executive directors is impacted by the excellent evolution of Santander share price. In 2025, the revaluation of the Santander share price used to set the 2025 variable remuneration (EUR 10.261) was +124%, so the Gross profit from shares handed over or consolidated financial instruments (Price x Volume) increased due to such revaluation. If it had remained stable in EUR 4.576 (share price of variable remuneration 2024), the increase in the total remuneration of the Executive Chair would have been +6.86% compared to the figure released in 2024 report (EUR 13,773 thousand). n And regarding the average remuneration of employees (EUR 62 thousand) , to highlight the following ideas: a. Normally the increases or decreases in remuneration are greater for the executive directors, depending on the results of the entity, because the percentage of variable remuneration over fixed remuneration is lower in the average employee than in the executive directors. b. Our local presence and global scale, based on three regions and ten core markets, and our vast branch network (c.7,000), have a direct impact on this figure: more than a half of our employees are based in Mexico and South America (mainly in Brazil). The salaries of these employees are adapted to the local cost of living. Therefore, the comparison with the remuneration of executive directors (which remuneration was set for living in a mature country) is also impacted by the difference between both costs of living. Developing countries have a lower cost of living than the country where both directors carried out their functions. c. The different annual exchange rates have also an impact on this calculation where all local wages and salaries are translated into euros at the average year-end exchange rate. d. Finally, the average remuneration figure of Banco Santander is impacted by the different departures (retirements and early retirements) and annual new hires, with the average cost of the former (a more senior profile) being higher than the latter (a more junior profile). | This annual report on remuneration has been approved by the board of directors of the company, at its meeting on 24 February 2026. State if any directors have voted against or abstained from approving this report. Yes o   No þ Annual report 2025409 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | ![5.Informe_ENG.jpg]() Economic and financial review Annual report 2025410 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | --- | --- | | | | | [1. Economy, regulation and competition](#i9a41553f8eec4d889f2ddea0648c85fc) | [411](#i9a41553f8eec4d889f2ddea0648c85fc) | | [2. Significant events in 2025](#i5a94fae801f04355b6d37e994e09d523) | [417](#i5a94fae801f04355b6d37e994e09d523) | | [3. Group selected data](#ib5125ea8ceac4e1ba40adf7654b412a4) | [418](#ib5125ea8ceac4e1ba40adf7654b412a4) | | [4. Group financial performance](#i4ab9aaf8185a4f7c8f61628293b21e3b) | [420](#i4ab9aaf8185a4f7c8f61628293b21e3b) | | [4.1 Overview of Santander](#i4d09383ac73f43fc9982ff9c21f0739b) | [420](#i4d09383ac73f43fc9982ff9c21f0739b) | | [4.2 Results](#ice4bdc13c23540f0ae86a3bf606ee6a1) | [423](#ice4bdc13c23540f0ae86a3bf606ee6a1) | | [4.3 Balance sheet](#i35c546ca2dfe44a6a16c781609c92d06) | [437](#i35c546ca2dfe44a6a16c781609c92d06) | | [4.4 Liquidity and funding management](#i3d424cf75b984d3cb8c65739058a1251) | [441](#i3d424cf75b984d3cb8c65739058a1251) | | [4.5 Capital management and adequacy. Solvency ratios](#i2207d307a1c640f29bad13d80b976714) | [449](#i2207d307a1c640f29bad13d80b976714) | | [4.6 Special situations and resolution](#i1f7cd55ea41246a9b3456bf97c6b4c5e) | [461](#i1f7cd55ea41246a9b3456bf97c6b4c5e) | | [5. Financial information by segment](#iaffb86d9288b400883869021faacbbcf) | [464](#iaffb86d9288b400883869021faacbbcf) | | [5.1 Description of segments during 2025](#i938a6f2692644150b6448fe070106ad4) | [464](#i938a6f2692644150b6448fe070106ad4) | | [5.2 Summary of the Group's main business areas' income statements](#i0d0eac8d313b44f3bee3475476beae5a) | [466](#i0d0eac8d313b44f3bee3475476beae5a) | | [5.3 Primary segments](#ic0fda751913e4c0d8dc91d1fe7700027) | [468](#ic0fda751913e4c0d8dc91d1fe7700027) | | [5.4 Appendix](#iba75757e28154077af811d4256b27221) | [483](#iba75757e28154077af811d4256b27221) | | [6. Alternative performance measures (APMs)](#iaeec09f00e7c4315b03e3cd73f716dc1) | [499](#iaeec09f00e7c4315b03e3cd73f716dc1) | | [7. Technological innovation: artificial intelligence, cybersecurity and](#i237a8fd3ed4e45cab207dea454d2920a) [fintech ecosystem](#i237a8fd3ed4e45cab207dea454d2920a) | [509](#i237a8fd3ed4e45cab207dea454d2920a) | | [8. Significant events since year end](#i34584e56392c4607a9c47311cf3a66ef) | [512](#i34584e56392c4607a9c47311cf3a66ef) | | [9. New reporting structure from 1 January 2026](#ied5fe202228147598ac8aec4e7fb2f02) | [513](#ied5fe202228147598ac8aec4e7fb2f02) | | [9.1 Changes in reporting from 2026](#i0b9f6649ea6c4314a826deb22d95f4db) | [513](#i0b9f6649ea6c4314a826deb22d95f4db) | | [9.2 Alternative performance measures (APMs) of the new reporting structure](#i0876b96f4ee44ff8b9aff9b4dc03ad3f) | [530](#i0876b96f4ee44ff8b9aff9b4dc03ad3f) | | [10. Trend information 2026](#i986c84c4705b4f54929e3e3bb5774b54) | [537](#i986c84c4705b4f54929e3e3bb5774b54) | Annual report 2025411 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 1. Economy, regulation and competition #### Economy In 2025, Santander operated in an environment characterized by gradual reductions in interest rates by the majority of central banks, in response to declining inflation. This occurred in a context marked by continuing geopolitical and trade tensions. However, despite some slowdown, the world’s major economies maintained good economic growth rates. Labour markets were resilient, with unemployment rates remaining low in more than half of the countries in which Santander operates. Our core regions' economies performed as follows in 2025: • Eurozone (GDP in 2025: +1.5%). The economy resisted tariff hikes imposed by the US, as the services sector compensated weaker manufacturing. Household consumption improved and, after a weak start to the year, investment showed signs of recovery in the second half, particularly investment in intangibles. Performance was mixed by country, with most of the momentum coming from Ireland, which grew by more than 10%, compared to Germany, among others, whose economy only grew 0.4%. Inflation fell to within the European Central Bank’s (ECB) target, which led to reductions in interest rates to 2% in June, a level estimated to be within the neutral range for the economy. • Spain (GDP in 2025: +2.8%). Spain recorded growth well above that of the eurozone driven by domestic demand. Household consumption remained robust, supported by strong job creation and population growth resulting from immigration. The investment component grew the most in the year, especially in equipment. On the other hand, foreign trade hindered growth; goods exports rose slightly and services exports moderated while imports grew well. Inflation ended the year at 2.9%, with service prices accelerating at the end of the year and growing by more than 3.5%. • UK (estimated GDP in 2025: +1.4%). The economic performance was resilient in 2025 despite domestic and foreign uncertainty. GDP growth was close to 1.5%, in line with the UK’s underlying trends, although this masks the weakness of consumer spending. The labour market continued to loosen in response to rising labour costs, with an unemployment rate of 5.1% and a decline in employment. Inflation remained above target for much of the year due to several regulated price hikes in April, ending the year at 3.4%. However, moderating wage growth led the Bank of England to continue to gradually cut interest rates to 3.75% in December 2025. • Portugal (GDP in 2025: +1.9%). The economy registered moderate growth, showing resilience in a complex international environment. Inflation slowed throughout the year, helping to ease pressure on household income, while the labour market remained robust, with the unemployment rate at 5.7% and employment at an all-time high (5.3 million people). Public finances also strengthened, with a budget surplus of 0.3% of GDP and a reduction in public debt to 90% of GDP, which supported external credibility and the stability of the macroeconomic framework. • Poland (estimated GDP in 2025: +3.6%). Economic growth accelerated further following a strong 2024 (GDP +3% in 2024), with domestic demand compensating weak foreign trade. In the first half of the year, consumption was a key driver of growth while, in the second half, investment gained greater prominence. The labour market saw some stress at the start of the year and began to weaken in June, with the unemployment rate increasing to 5.7% in December. As a result, year-on-year nominal wage growth moderated (from 9.2% in January 2025 to 7.1% in November 2025), confirming lower inflationary pressures. Slowing price growth led to an inflation rate of 2.4% in December, below the central bank's target (2.5%), which enabled them to cut interest rates to 4% in December 2025. • US (estimated GDP in 2025: +2.2%). GDP growth remained robust. The negative impact from higher tariffs and migration restrictions was mitigated by more favourable financial conditions and the investment boom in artificial intelligence (AI). Inflation (2.7% in December) stopped decelerating, pressured by goods inflation. The Federal Reserve (Fed) resumed interest rate cuts in September as the labour market cooled; the unemployment rate ended the year at 4.4% and the target range of the federal funds rates at 3.50-3.75%, 75 bps below the level at the end of 2024. • Mexico (preliminary GDP in 2025: +0.5%). Economic growth weakened in 2025, due to uncertainty around tariffs and an adjustment in construction investment, following the completion of infrastructure projects in 2024, while exports surprised on the upside. Headline inflation moderated in the second half of the year from 4.3% in June to 3.7% in December, but core inflation was stickier and ended above 4%. The central bank continued to gradually cut interest rates from 10% at 2024 year-end to 7% at the end of 2025. • Brazil (estimated GDP in 2025: +2.2%). The economy slowed in the second half of the year, generally across sectors. However it was more resilient than expected, especially in the labour market where the unemployment rate reached historic lows. Inflation rose to 5.5% at the beginning of the year, but moderated in the last quarter and ended the year at 4.3% (4.8% in 2024), reflecting the effects of tighter monetary policy and a slowdown in economic activity. The central bank raised the official interest rate to 15% in June and held them stable in the second half of Annual report 2025412 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | the year, in a higher-for-longer context, and reinforcing its commitment to controlling inflation. • Chile (estimated GDP in 2025: +2.3%). The economy recovered, driven by strong investment, especially in mining and energy projects, and by a gradual improvement in domestic demand. After rising at the beginning of the year due to an adjustment in electricity tariffs, inflation returned to lower levels, ending the year below 3.5%. Inflation expectations are anchored at the 3% target from 2026 onwards, allowing the central bank to continue to cut interest rates to 4.5% at 2025 year-end from 5.0% in 2024. • Argentina (estimated GDP in 2025: +4.1%). The economy made progress in improving its macroeconomic balances, maintaining a fiscal surplus and reducing the volatility seen at the beginning of the year. After the elections, the foreign exchange market showed clear signs of normalization and activity began to recover gradually, supported by a more predictable environment. Inflation continued to decline, settling between 2% and 3% per month for most of 2025. Financial markets performed well in general in 2025. In equity markets, on the whole the balance was favourable after some volatility at the beginning of the year, due to the announcement of new import tariffs by the US. The trade truce and negotiations facilitated a rapid and orderly recovery of the main indices. In the US, stock markets made solid progress due to the strength of the business cycle and AI-linked sectors. In Europe, overall performance was favourable, albeit mixed. For example, the Spanish economy benefited from robust domestic demand, while Germany continued to face structural challenges. Overall, equity markets ended the year showing a strong ability to adapt to periods of uncertainty and maintain a positive trajectory throughout the year. In debt markets, 2025 was dominated by more moderate movements in sovereign yields. Although the Fed and the ECB continued their cycles of interest rate cuts, the margin for further declines is limited. In the US, Treasury bond yields remained relatively high, reflecting both the need to finance persistent fiscal deficits and inflation that, while down, remains above target. In Europe, debt spreads shifted downward somewhat, except in France, where spreads were under stress due to a combination of fiscal factors, credit rating downgrades and a changing political environment. In foreign exchange markets, the US dollar weakened throughout the year against major currencies. Within the commodities market, gold continued to stand out, driven by geopolitical uncertainty, falling interest rates and central banks seeking further diversification of their reserves. Industrial metals performed well, due to the recovery in manufacturing activity, their key role in the energy transition and the sharp increase in demand for data centre expansion and AI infrastructure. Oil prices decreased, explained by increased production and falling structural demand associated with improvements in energy efficiency and the advancement of renewable alternatives. Latin American markets ended the year on a clearly positive note, recovering from a volatile start due to idiosyncratic factors in several countries and uncertainty around tariffs. In the foreign exchange market, most exchange rates appreciated significantly against the US dollar, favoured by both the weakness of the dollar and a more benign tariff environment than expected for the region compared to other developing and mature markets. In stock markets, the main indices reached historic highs in many countries, while sovereign yields followed a downward trajectory for the year as a whole, though they picked up in December, supported by a decrease in inflation, the easing of monetary policies and, in the case of Brazil, the conclusion of the monetary tightening cycle. The banking sector benefitted from a favourable macroeconomic environment and resilient labour markets, which enabled good profitability levels to be maintained, supported by improved business volumes and portfolio quality. This was reflected in the bank market valuations, which once again outperformed the main stock indices, enabling a large proportion of credit institutions to return to valuations above their book value. This change in market sentiment was also supported by the soundness shown by the banking sector in the face of recent economic shocks, periods of volatility and the various stress exercises carried out by supervisors. Lastly, recognition of the complexity of banking regulation by the authorities and the simplification processes established in the main economic areas also contributed to the improvement in valuations. #### Regulatory and competitive environment During 2025, the regulatory agenda was shaped by renewed political momentum in the European Union (EU). As anticipated by reports published by political figures such as Enrico Letta and Mario Draghi, simplification and competitiveness were central pillars of the EU's strategy, prompting progress on initiatives aimed at streamlining the regulatory framework and strengthening the single market. This was reflected in the first measures of the new political cycle, which included the launch of the Omnibus I package to rationalize sustainability regulation, as well as further progress on the Savings and Investments Union (SIU) as a strategic project to mobilize European savings, the Banking Union and securitizations. The environment continued to be influenced by the war in Ukraine and other geopolitical tensions, which reinforced the urgency to ensure greater European sovereignty and shaped a wide range of debates, including defence strategy, the digital euro and AI. 2025 was also characterized by an increased focus on digital resilience, with the full implementation of the Digital Operational Resilience Act (DORA), the entry into force of the Markets in Crypto-Assets Regulation (MiCA) and the modernization of the payments framework. From a risk perspective, some European authorities, such as the ECB, placed particular emphasis on stablecoins, while the debate on the interconnectedness between the banking sector and non- bank financial institutions (NBFIs) continued. In other jurisdictions, such as the US and the UK, the agenda was also significantly shaped by the focus on competitiveness and growth. The main regulatory topics in 2025 were: 1. Prudential and resolution: during 2025, the regulatory focus in the EU included the implementation of the Basel III reform and significant progress across several key regulatory files. The Annual report 2025413 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | European Banking Authority (EBA) continued to develop the technical standards required for the full application of the Capital Requirements Regulation (CRR 3), while the implementation timeline of the Fundamental Review of the Trading Book (FRTB) was once again adjusted, with a revised entry-into-force schedule differentiated across jurisdictions due to the lack of international alignment and the accumulated delays in implementation in the UK and the US. At the global level, the Basel Committee continued to work on the prudential framework for crypto-asset exposures and made progress in reviewing the treatment of NBFIs, in light of the lessons learned from episodes of market stress in recent years. In Europe, there was renewed momentum on two fronts in 2025. An agreement was reached on the review of the crisis management and deposit insurance framework (CMDI), which enabled the reactivation of a legislative file that had stalled in previous years and paved the way for a more harmonized implementation of resolution tools and the use of deposit guarantee schemes. Secondly, the European Commission proposed a reform of the securitization framework, with initiatives aimed at improving risk sensitivity, reducing unnecessary burdens and facilitating the use of securitizations —including significant risk transfer transactions— as a means to unlock funding capacity and strengthen European competitiveness. The debate on the potential review of the capital buffer framework and its interaction with Pillar 1, Pillar 2 and resolution requirements continued, in a context in which several European authorities emphasized the need to improve the usability and predictability of buffers under potential stress scenarios. In the US, measures were proposed to amend the supervisory and regulatory frameworks, introducing significant simplifications, including fewer prudential requirements and reduced supervisory intensity. In the UK, the prudential authority put forward measures aimed at reducing capital requirements and addressing existing overlaps between different requirements. 2. Sustainability: in the context of enhancing European competitiveness, in February 2025, the European Commission presented the Omnibus I package, aimed at simplifying and harmonizing sustainability requirements —including the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD) and the EU Taxonomy— with the intention of providing greater regulatory clarity and reducing the complexity of reporting obligations. In addition, the Commission made progress in its review of the Sustainable Finance Disclosure Regulation (SFDR) and put forward a proposal to simplify the framework and provide greater clarity on the disclosure requirements applicable to financial products. The EBA published its final guidelines on ESG risk management, as well as guidelines on ESG scenario analysis, and continued to assess whether the current framework adequately covers these risks from a prudential perspective. The Basel Committee published a new voluntary framework for the disclosure of climate-related financial risks, in line with its objective of complementing Pillar 3 transparency requirements with information on environmental risk management. Finally, the International Sustainability Standards Board (ISSB) continued to make progress in the development of reporting requirements, consolidating its position as the international standard. Several jurisdictions continued to work to align with this framework; Brazil and Chile moved towards mandatory implementation, while Mexico continued to progress towards adoption. These developments help to strengthen interoperability between international and local frameworks. At a local level, while in the US sustainability regulation was reviewed and, to a large extent, eliminated, due to its potential impact on corporate competitiveness, other countries such as Chile and Brazil continued to make decisive progress in the development of their taxonomies. 3. Digitalization: in 2025, the global digital regulatory landscape continued to advance towards a framework with clearer rules on the participation and responsibilities of the various players, with the EU leading the way through the effective application of the Digital Markets Act (DMA) and the Digital Services Act (DSA). The enforcement of these rules remains ongoing, as European authorities continue to intensify their efforts. At the same time, payments regulation remained a key focus, with the review of the Payment Services Directive (PSD) and the Payment Services Regulation (PSR), that establish a new framework for the treatment of payment fraud, and the entry into force of the new Instant Payments Regulation (IPR). Regarding digital assets, 2025 marked a global turning point. In Europe, MiCA provided a comprehensive regulatory framework for stablecoins, asset-referenced tokens and crypto-asset service providers for the first time. This regulation, which entered into force progressively starting in 2024 and became fully applicable in 2025, requires audited reserves for significant stablecoins and also introduces governance, transparency and prudential limit requirements. These measures contribute to reducing regulatory gaps and creating a 'European passport' for crypto-asset service providers (CASPs). In the rest of the world, authorities in the US, the UK and several Asian jurisdictions made progress in regulations ranging from one-to-one reserve requirements for stablecoins backed by currency to licensing frameworks for custodians, exchanges and digital asset issuers, with the aim of mitigating systemic risks without slowing innovation. The emergence of new regulatory frameworks in other jurisdictions has also sparked debate on the need to update and review MiCA. Finally, the debate on central bank digital currencies (CBDCs) accelerated in 2025, with the exception of the US, which does not foresee the issuance of a digital dollar. CBDCs aim to strengthen monetary sovereignty and their development suggests that both wholesale and retail digital money will become a critical infrastructure. The most advanced case is that of the digital euro, with the ECB indicating that it would be ready to issue it —subject to the formal decision and approval of the relevant European Commission Regulation— in 2029. Annual report 2025414 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Overall, 2025 firmly established an ecosystem in which money, assets and digital infrastructure are converging. Platform regulation, AI, payments, cyber resilience and crypto-assets are beginning to be integrated under a common framework that will shape the next decade of the global digital economy. 4. Retail banking: during 2025, negotiations continued on the European Commission’s Retail Investment Strategy (RIS), which aims to facilitate retail investors’ access to EU capital markets. The debate focused on simplifying the investment process and limiting regulatory requirements, while maintaining appropriate levels of investor protection. Discussions also continued around the Capital Markets Union, now rebranded as the Savings and Investments Union (SIU), which seeks to create a single capital market and increase retail investor participation in capital markets. The debate focused on the European Commission’s recommendations to Member States on the creation of savings and investment accounts (SIAs), accompanied by a financial education strategy. In the UK, progress was also made in this area, with a review of savings and investment accounts. For more details, see [note 1.e](#i6ecb2a0d58d04b53bfadfa2a833efaa7_964) to the consolidated financial statements. Annual report 2025415 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Santander and public policy We have a strong commitment to our customers to conduct our business in a simple, personal and fair way. We are also committed to maintaining a constructive and transparent relationship with regulators and supervisors, both regarding the regulations and frameworks that affect our activities, as well as the interests of our customers. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Public policy priorities | | | | | | | | | | | | | | 1 | Promote regulation that allows banks to finance the economy and be profitable and investable | | | | | | | • Banks must continue to play their fundamental role of financing the economy and promoting growth in a competitive way, with profitability as their first line of defence. • Promoting economic growth is crucial to be able to finance the current challenges (including decarbonization, the demographic challenge and digital transformation, among others) and thereby increase financial stability. Therefore it is important that, when designing regulation and supervision, policymakers and regulators consider the need for a balance between preserving financial stability and supporting economic growth. To this end, progress in needed across four key pillars: 1) The introduction of a secondary supervisory objective of growth and competitiveness; 2) The review of existing and forthcoming level 2 and level 3 regulation, with the aim of strengthening the consistency, transparency and predictability of requirements, as well as the fundamentals behind additional capital requirements; 3) The adoption of a holistic principles-based supervisory framework, that has a global view of supervisory and regulatory requirements, which accommodates diverse business models and characteristics between entities; and 4) The reinforcement of the regulatory framework through a cost-benefit analysis, periodic reviews and a detailed timeline for the entry into force of regulation. • For European banks to be competitive and do more for their customers, businesses and society as a whole, it is necessary to continue advancing towards a single market, with the completion of the Banking Union and the Capital Markets Union. | | | | | | | | | | | | 2 | Provide support so that sustainability can boost the competitiveness and growth of companies | | | | | | | • It is crucial for the regulatory framework to recognize specific needs given the heterogeneity in the starting points of countries and sectors in terms of their transitions, to enable banks to finance both sustainable companies and, in particular, those in transition towards becoming more sustainable. • A coherent and predictable regulatory framework, based on appropriate incentives, an adequate risk assessment and a pragmatic approach that preserves banks’ ability to mobilize capital towards tangible opportunities, is essential to scale transition finance. • It is important that the regulatory framework does not add capital requirements associated with sustainability risk management. | | | | | | | | | | | | 3 | Leverage the benefits of a digital economy | | | | | | | • In an increasingly digital world, banks must leverage technology to enhance their value proposition. All market participants must adhere to competition rules in order to build a fairer and more scalable system. • It is positive for central banks to analyse the possibilities technology offers to increase innovation. Regarding payments, a prudent approach to CBDCs is needed, to ensure they generate opportunities while mitigating associated risks. Retail CBDCs could have significant impacts on financial stability and should not displace private payment solutions. In contrast, wholesale CBDCs could act as enablers for a new tokenized economy. • It is vital that all payment systems are subject to a common regulatory framework, to safeguard customer protection and financial stability and promote interoperability between payment systems. • Involvement from both education and public authorities is necessary to raise awareness of the increased risk of fraud in a digital world. Moreover, it is crucial to facilitate a framework that addresses the entire fraud chain and adequately allocates responsibilities to all parties involved, to avoid perverse incentives. • It is crucial that, in developing stablecoin regulation, authorities consider their potential as a global digital asset, in order to ensure global regulatory harmonization. Tokenization has the potential to transform financial markets by introducing new financial assets. | | | | Annual report 2025416 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | Promote a data economy | | | | | | 4 | | | | | | | | • Data has gained importance as an asset in an increasingly digitalized economy and society. Leveraging the benefits of a data-driven economy requires a change in the way in which companies are regulated, public institutions are managed and citizens are served. • Data exchange should be regulated following a cross-sector perspective, to promote synergies that could arise from sharing information between sectors and thus maximize opportunities for innovation and preserve a competitive environment. One of the clearest examples is the combination of public and private data. • It is essential that regulation encourages innovation and the adoption of AI as a transformative technology, while also curbing threats to people’s safety and fundamental rights. The major challenges linked to this technology are global and must be tackled in a coordinated way across regions. Regulators and the industry must work together to establish adequate guidelines and ensure their proper implementation. | | | | | | | | | | | | 5 | Achieve the proper balance between customer protection and needs | | | | | | | | | | | | | • Regulation must promote both customer protection and service as well as product, service and channel innovation, based on a market approach. The implementation of regulatory instruments such as caps on prices or bans on incentives to sell products should be carefully assessed, as they can introduce complexity and rigidity into value propositions and may even lead to the creation of an unregulated parallel market. • Significant short- and medium-term investments are needed to finance the growing digitalization of the economy and the green transition. It is critical to ensure that retail investors have access to capital markets, through simple investment processes and transparent and specific information on value-adding products. Additionally, incentives are key to providing advice and value-added services to these investors in open distribution models. • To ensure financial inclusion and prevent excessive leverage, it is important for consumers to access credit in line with their needs and solvency and that interest rates on consumer credit are set according to market competition. • Promoting financial education and empowering consumers with clear and targeted information is crucial to enabling consumers to make informed financial decisions. In this sense, the use of data and AI will be key to better fulfilling our customers' needs in a changing environment. | | | | | | | | | | | Annual report 2025417 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 2. Significant events in 2025 In Q2 2025, Santander announced the entry into an agreement with Erste Group Bank AG (Erste) to sell approximately 49% of the share capital of Santander Bank Polska S.A. (Santander Poland) and the 50% of the asset management company (TFI) which was not integrated within Santander Poland to Erste, for a total cash amount of approximately EUR 7 billion. In addition, Santander announced its intention to acquire 100% of Santander Consumer Bank Polska by purchasing the 60% stake currently held by Santander Poland (approximately EUR 0.7 billion), thereby bringing the consumer business fully within the perimeter of Grupo Santander and excluding it from the scope of the sale to Erste. Santander and Erste also announced a strategic collaboration to leverage the strengths and international presence of both institutions in Corporate & Investment Banking (CIB) as well as the possibility for Erste to benefit from Santander’s global payments platforms. The abovementioned transaction will hereinafter be referred to as the 'Poland disposal'. The acquisition of Santander Consumer Bank Polska closed on 23 December 2025 and the sale of Santander Poland was completed on 9 January 2026, after obtaining regulatory approvals and fulfilling the conditions for closing. In accordance with IFRS 5 requirements, the business subject to the Poland disposal has been classified as 'non-current assets/ liabilities held for sale' and the related results have been reported under 'discontinued operations'. Accordingly: • In the Group’s consolidated balance sheet, the assets associated with the Poland disposal are classified under the 'non-current assets held for sale' line item and the related liabilities under 'liabilities associated with non-current assets held for sale'. This classification applies solely to the balance sheet from 30 June 2025 onwards and does not affect balance sheets for prior periods. • In the statutory income statement, the results associated with the business subject to the Poland disposal are reported under a single line in the consolidated income statement — 'profit/(loss) after tax from discontinued operations' — for results corresponding to 2025, 2024 and 2023. Consequently, the results from the Poland disposal perimeter are excluded line by line from the breakdown of continuing operations in all three periods. However: • In the underlying income statement, both at the Group and the primary and secondary segment levels (which are presented on an underlying basis only), the results from Poland have been reported line by line and disaggregated, as they were in previous disclosures given the fact that the management of Santander Poland remained unchanged until the Poland disposal was completed in January 2026. This reporting approach is consistent with the information used internally in management reporting, as well as with other public Group disclosures. • For the same reason, all management metrics included in this chapter have been calculated including Poland, i.e. maintaining the same perimeter that existed at the time of the announcement of the Poland disposal with the exception of section 9 of this chapter, where we lay out the reporting changes for 2026. However, if we were to exclude Poland, the Group's main management ratios would not be materially affected. For further information, see the [6. 'Alternative performance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) [measures'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) section of this chapter. Additionally, in Q3 2025, Santander announced it has reached an agreement to acquire 100% of TSB Banking Group plc's (TSB) share capital from Banco de Sabadell, S.A. with a valuation of GBP 2.65 billion (approximately EUR 3.1 billion) in an all-cash transaction. This agreement does not affect the information presented in this report given that the transaction has not yet been completed and is still pending the relevant regulatory approvals, among other things. Finally, in Q4 2025, Santander announced the merger of Openbank and Santander Consumer Finance (SCF) into a single legal entity. This is expected to result in all our European consumer finance businesses progressively operating under the Openbank brand in 2026. Annual report 2025418 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 3. Group selected data | | | | | | | --- | --- | --- | --- | --- | | | | | | | | BALANCE SHEET (EUR million) | Dec-25 | Dec-24 | % Dec-25 vs. Dec-24 | Dec-23 | | Total assets | 1,867,515 | 1,837,081 | 1.7 | 1,797,062 | | Loans and advances to customers | 1,037,288 | 1,054,069 | (1.6) | 1,036,349 | | Customer deposits | 1,041,200 | 1,055,936 | (1.4) | 1,047,169 | | Total funds A | 1,363,160 | 1,348,422 | 1.1 | 1,306,942 | | Total equity | 112,748 | 107,327 | 5.1 | 104,241 | Note: if we include loans, deposits and funds associated with the Poland disposal, as at 31 December 2025 loans and advances to customers would have been EUR 1,076,315 million; customer deposits EUR 1,095,827 million and total funds EUR 1,426,432 million. For further information, see sections 2. 'Significant events in 2025', and [6. 'Alternative performance measures'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) in this chapter. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | INCOME STATEMENT (EUR million) | 2025 | 2024 | % 2025 vs. 2024 | 2023 | | Net interest income | 42,348 | 43,787 | (3.3) | 40,650 | | Total income | 58,670 | 58,380 | 0.5 | 54,251 | | Net operating income | 33,959 | 33,231 | 2.2 | 29,619 | | Profit before tax | 18,681 | 17,347 | 7.7 | 15,005 | | Profit attributable to the parent | 14,101 | 12,574 | 12.1 | 11,076 | Note: net operating income is total income minus operating expenses. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EPS, PROFITABILITY AND EFFICIENCY (%) B | 2025 | 2024 | % 2025 vs. 2024 | 2023 | | Earnings per share (euro) | 0.91 | 0.77 | 17.3 | 0.65 | | RoE | 13.9 | 13.0 | | 11.9 | | RoTE | 17.1 | 16.3 | | 15.1 | | RoTE (post-AT1) | 16.3 | 15.5 | | 14.4 | | RoA | 0.84 | 0.76 | | 0.69 | | RoRWA | 2.44 | 2.18 | | 1.96 | | Efficiency ratio C | 41.2 | 41.8 | | 44.1 | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | UNDERLYING INCOME STATEMENT C (EUR million) | 2025 | 2024 | % 2025 vs. 2024 | 2023 | | Net interest income | 45,354 | 46,668 | (2.8) | 43,261 | | Total income | 62,390 | 62,211 | 0.3 | 57,647 | | Net operating income | 36,665 | 36,177 | 1.3 | 32,222 | | Profit before tax | 20,867 | 19,027 | 9.7 | 16,698 | | Profit attributable to the parent | 14,101 | 12,574 | 12.1 | 11,076 | | % changes in constant euros (2025 vs. 2024): | | | | | | NII: +0.6%; Total income: +3.9%; Net operating income: +5.1%; Profit before tax: +13.4%; Attributable profit: +16.2%. | | | | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | SOLVENCY (%) | Dec-25 | Dec-24 | | Dec-23 | | Phased-in CET1 capital ratio | 13.5 | 12.8 | | 12.3 | | Phased-in total capital ratio | 17.8 | 17.4 | | 16.4 | Annual report 2025419 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | CREDIT QUALITY (%) B | Dec-25 | Dec-24 | | Dec-23 | | Cost of risk C D | 1.15 | 1.15 | | 1.18 | | NPL ratio | 2.91 | 3.05 | | 3.14 | | NPL coverage ratio | 66 | 65 | | 66 | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | THE SHARE AND MARKET CAPITALIZATION | Dec-25 | Dec-24 | % Dec-25 vs. Dec-24 | Dec-23 | | Number of shareholders | 3,518,729 | 3,485,134 | 1.0 | 3,662,377 | | Number of shares (millions) | 14,689 | 15,152 | (3.1) | 16,184 | | Share price (euro) | 10.070 | 4.465 | 125.6 | 3.780 | | Market capitalization (EUR million) | 147,921 | 67,648 | 118.7 | 61,168 | | Tangible book value per share (euro) | 5.76 | 5.24 | | 4.76 | | Price / Tangible book value per share (X) | 1.75 | 0.85 | | 0.79 | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | CUSTOMERS (thousands) E | Dec-25 | Dec-24 | % Dec-25 vs. Dec-24 | Dec-23 | | Total customers | 180,221 | 172,537 | 4.5 | 164,542 | | Active customers F | 106,410 | 103,262 | 3.0 | 99,503 | | Digital customers G | 62,982 | 59,317 | 6.2 | 54,161 | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | OTHER DATA E | Dec-25 | Dec-24 | % Dec-25 vs. Dec-24 | Dec-23 | | Number of employees | 198,403 | 206,753 | (4.0) | 212,764 | | Number of branches H | 7,124 | 8,086 | (11.9) | 8,518 | | | | | | --- | --- | --- | | | | | | | | | | | Note: for Argentina and any grouping which includes it, the variations in constant euros have been calculated considering the Argentine peso exchange rate on the last working day for each of the periods presented. For further information, see section [6.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) ['Alternative performance measures'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) of this chapter. Certain figures contained in this chapter, have been subject to rounding to enhance their presentation. Accordingly, in certain instances, the sum of the numbers in a column or a row in tables contained in this report may not conform exactly to the total figure given for that column or row. | | | | | | | | | --- | | | | A. Includes customer deposits, mutual funds, pension funds and managed portfolios. | | B. For further information, see section [6. 'Alternative performance measures'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) of this chapter. | | C. In addition to IFRS measures, we present non-IFRS measures including some which we refer to as underlying measures. These non-IFRS measures exclude items outside the ordinary course of business and reclassify certain items under some headings of the underlying income statement as described at the end of section [4.2 'Results'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_676) and in section [6. 'Alternative performance measures'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) of this chapter. In our view, this provides a better year-on-year comparison. | | D. Allowances for loan-loss provisions over the last 12 months / Average loans and advances to customers over the last 12 months. | | E. Customers, employees and branches include Poland. | | F. Those customers who comply with the minimum balance and/or transactionality requirements as defined according to the business area. | | G. Every physical or legal person, that, being part of a commercial bank, has logged in to its personal area of internet banking or mobile phone or both in the last 30 days. | | H. For 2025 and 2024 data, we have included the CartaSur points of sale and the banking service points in Argentina, while we have excluded operational locations that do not provide customer service in Colombia. | Annual report 2025420 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 4. Group financial performance Santander follows IFRS to report its results (see [note 1.b](#i6ecb2a0d58d04b53bfadfa2a833efaa7_955) to the consolidated financial statements), which generally inform reporting of our financial situation in this consolidated directors’ report. However, we also use non-IFRS measures and Alternative Performance Measures (APMs) to assess our performance (see section [6. 'Alternative performance measures'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) of this chapter). Thus, the main adjustments to our IFRS results consist of: • Underlying results measures: we present what we call underlying results measures which exclude items outside the ordinary course of business and reclassify certain items under some headings of the underlying income statement as described at the end of section[4.2 ‘Results](#i6ecb2a0d58d04b53bfadfa2a833efaa7_676)[’](#i6ecb2a0d58d04b53bfadfa2a833efaa7_676) in this chapter and in [note 52.c](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1237) to the consolidated financial statements. In our view, this provides a better year-on-year comparison. In section [5. 'Financial information by segment'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_691), we present results by primary and secondary segments only in underlying terms in accordance with IFRS 8. We reconcile them in aggregate terms with our IFRS consolidated results in [note 52.c](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1237) to the consolidated financial statements. • Local currency measures: we use certain non-IFRS financial indicators in local currency to assess our ongoing operating performance. They include the results from our subsidiary banks outside the eurozone excluding the exchange rate impact (i.e., in constant euros) except for Argentina and any grouping which includes it . For further information, see section [6. 'Alternative](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) [performance measures'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) of this chapter, which explains how we exclude the exchange rate impact from financial measures in local currency. Because changes in exchange rates have a non- operating impact on results, we believe assessing performance in local currency provides management and investors a more meaningful assessment of performance. We have rounded certain figures in this consolidated directors' report to present them more clearly. Thus, the amounts given in the totals columns and rows of tables in certain instances may not match the sum of that column or row. #### 4.1 Overview of Santander Santander is a Retail and Consumer global powerhouse and one of the largest banks in the eurozone. As at 31 December 2025, we had EUR 1,867,515 million in assets, ranking first in the eurozone by market capitalization (EUR 147,921 million as at 31 December 2025). #### The Santander Way Our Purpose is to help people and businesses prosper. Our Aim is to be the best open financial services platform, by acting responsibly and earning the lasting loyalty of our stakeholders by being Simple, Personal and Fair in all we do. Thanks to the advantages provided by our network effect, our geographic and business diversification and our scale, over the past four years we have succeeded in surpassing our record results year after year through our global business model and ONE Transformation. This has enabled us to operate more efficiently through the operational leverage delivered by our transformation strategy. Within the Group, we engage in a wide range of typical banking activities, operations and services to meet all our customers' needs. We do not only work to meet our legal and regulatory obligations but we also aim to exceed the expectations of our stakeholders: employees, customers, shareholders and communities. • We are committed to continuously improving the experience of the 198,403 employees who are part of Santander. Our goal is to attract and retain the best talent by offering an attractive value proposition that prioritizes personal growth, an inspiring culture and working conditions that ensure the health and well-being of our people through initiatives that help improve work-life balance. Furthermore, we promote an environment that prioritizes inclusion, where all voices are valued and individuals feel safe and free to express their identity, ideas and opinions. We continue to use our listening channel, Your Voice, to periodically assess the engagement and experience of our professionals, which once again showed excellent results in 2025. Annual report 2025421 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | • Customer focus is an essential part our strategy. We are a Retail and Consumer global powerhouse with 180 million customers. We continue to build a digital bank with branches to be the number one bank for our customers. By listening to our customers' needs, we are strengthening Santander's position as their trusted financial partner. We continue to change and adapt to our customers' evolving needs to offer the best products, an agile and frictionless customer experience for daily needs and competitive prices. Throughout 2025, we undertook significant initiatives to transform customer experience and strengthen our value proposition. This was reflected in our customer growth rates and Net Promoter Score (NPS) improvement where we are one of the top three banks in nine of our markets. In addition, in the digital space, we enhanced self-service capabilities and user experiences, by incorporating AI to simplify and streamline processes and remove operational burdens from our employees, enabling them to focus on advising customers while delivering a more personalized service. At year end, we had 7,124 branches, including traditional ones and other specialized centres for businesses, private banking, universities and other customer segments. These physical spaces have evolved to integrate traditional services with digital facilities. With this approach, we continue to expand our Work Café branch concept, through which we seek to establish collaborative spaces, which enable native digital customers to have a better experience and integrate their financial transactions into their daily lives. At the same time, customer interactions continued their structural shift towards digital and remote services with high user experience standards. As at 31 December 2025, we had more than 63 million digital customers (6% more than in 2024) and 70% of our products services are now digitally available (up from 62% in 2024). At Santander, we appreciate the value of the human connection that our branch network provides and are mindful of our most vulnerable customers' needs, responding with tailored offers, thereby increasing customer loyalty and improving customer experience. We are committed to creating products and services tailored to our customers’ needs. We have adapted our branches, products, services and channels to ensure universal physical and digital access for people with disabilities and older adults. In the countries where we operate, we offer value propositions specifically aimed at senior customers. For example, we provide tailored products for retirees in Mexico and Argentina, services such as SuperLinha Senior in Portugal to support older people with limited digital skills, and third-party access initiatives in the UK to assist older individuals who require carers. In Spain, we provide customers in limited access (or sparsely populated) areas access to credit and help combat social exclusion in communities with less than 10,000 inhabitants, maintaining our Correos Cash agreement to provide access to cash in areas that might otherwise have been left unattended with a non-digital solution through rural letter carriers. In Argentina, we have financial inclusion branches and remote agents operating in vulnerable communities. In Uruguay, mobile branches have been deployed across the country since 2020 to reach areas with low levels of financial inclusion. Additionally, within our financial inclusion programmes, we continue to expand initiatives such as our microfinance programmes in Latin America (Prospera in Brazil and Colombia, Tuiio in Mexico and Surgir in Peru). We also complement our support for financial inclusion with financial education programmes and financial health solutions for customers. In Spain, for example, Santander participates in the Social Housing Fund, which facilitates rental access for low-income individuals and families, and we have initiatives to support groups facing difficulties in accessing credit. In the US, we provide loans to small businesses operating in low- and moderate-income communities. Thanks to all our efforts in financial inclusion, we have reached our goal of achieving 5 million people who benefitted from one of our financial inclusion initiatives over the 2023–2025 period. • We also support our communities. The Group has continued to develop programmes in the communities where it operates to help address existing social needs. Our support for communities focuses on education, employability and entrepreneurship, and is complemented by the provision of targeted financial education and assistance for vulnerable individuals. Moreover, we have a strong track record of backing cultural and other social initiatives. For more information, see the ['Sustainability statement'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) chapter. • For our shareholders, we delivered solid financial results in the year and met all our targets we had set for 2025. Once again, we achieved an all-time high attributable profit, reaching EUR 14,101 million, growing 12% year-on year, +16% in constant euros. This growth was supported by a good performance in net fee income and improved efficiency (down to 41.2% in 2025), which translated into increased profitability (RoTE post-AT1 of 16.3% in 2025). At the same time, we maintained a solid balance sheet with sound credit quality (cost of risk was stable at 1.15%) and strong capital generation during the year, reaching the highest CET1 capital ratio in our history (the phased-in CET1 ratio was 13.5%). Additionally, we delivered higher shareholder remuneration with double-digit value creation in 2025. Our TNAV per share plus cash dividend per share grew 14% year-on-year and the cash dividend per share paid during 2025 was 15% greater than cash dividends per share paid during 2024. We continued with our share buyback programmes, in line with our goal to distribute at least EUR 10 billion through share buybacks charged against 2025 and 2026 results and against expected capital excess. Annual report 2025422 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Looking ahead In 2025, we completed our three-year strategic plan, demonstrating the strength in our model and the advantages our scale and network effect offer across our five global businesses, as well as the insight gained from our presence in our local markets. On 25 February 2026, the date of publication of this Annual report, we also held our Investor Day, at which the new strategic plan for the next three years was presented. We remain focused on our three fundamental principles: • Think Value: creating value through-the-cycle, delivering double-digit value creation. • Think Customer: building a digital bank with branches with well- targeted products and services to grow our customer base. • Think Global: leveraging global and in-market scale, network and tech to deliver world class-services and accelerate profitable growth. For 2026, the Group's targets will be centred on achieving mid- single digit revenue growth, reducing costs in constant euros and increasing profit year-on-year, all excluding perimeter impacts from the announced operations, in addition to ending the year with the capital ratio CET1 between 12.8-13%. In relation to the announced operations, in 2026 we will work to complete the acquisitions of TSB in the UK and Webster Financial Corporation in the US, strengthening our position in two of our key markets. We expect that these acquisitions, together with our new strategic plan, will enable us to drive profitability in each of the countries where we operate and to generate synergies and new opportunities across the Group’s different global businesses and markets. Annual report 2025423 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 4.2 Results #### Statutory income statement | | | --- | | | | As a result of the announcement of the Poland disposal in Q2 2025 and in accordance with IFRS 5 requirements, in the statutory income statement, results associated with the business subject to the Poland disposal are reported under a single line item in the consolidated income statement — 'profit or loss after tax from discontinued operations' — for the years 2025, 2024 and 2023. Consequently, the results from the Poland disposal perimeter are excluded line by line from the breakdown of continuing operations in all the periods presented herein. For further information, see section 2. 'Significant events in 2025' of this chapter. | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Condensed income statement | | | | | | | EUR million | | | | | | | | | | Change | | | | | 2025 | 2024 | Absolute | % | 2023 | | Net interest income | 42,348 | 43,787 | (1,439) | (3.3) | 40,650 | | Net fee income (commission income minus commission expense) | 12,976 | 12,376 | 600 | 4.8 | 11,495 | | Gains or losses on financial assets and liabilities and exchange differences (net)A | 2,362 | 2,211 | 151 | 6.8 | 2,565 | | Dividend income | 715 | 710 | 5 | 0.7 | 568 | | Income from companies accounted for using the equity method | 665 | 687 | (22) | (3.2) | 591 | | Other operating income/expensesB | (396) | (1,391) | 995 | (71.5) | (1,618) | | Total income | 58,670 | 58,380 | 290 | 0.5 | 54,251 | | Operating expenses | (24,711) | (25,149) | 438 | (1.7) | (24,632) | | Administrative expenses | (21,533) | (21,970) | 437 | (2.0) | (21,546) | | Staff costs | (13,633) | (13,825) | 192 | (1.4) | (13,275) | | Other general administrative expenses | (7,900) | (8,145) | 245 | (3.0) | (8,271) | | Depreciation and amortization | (3,178) | (3,179) | 1 | 0.0 | (3,086) | | Provisions or reversal of provisions | (2,729) | (3,465) | 736 | (21.2) | (2,410) | | Impairment or reversal of impairment of financial assets not measured at fair value through profit or loss (net) | (12,546) | (12,136) | (410) | 3.4 | (12,298) | | Impairment of other assets (net) | (251) | (624) | 373 | (59.8) | (237) | | Gains or losses on non-financial assets and investments (net) | — | 368 | (368) | (100.0) | 312 | | Negative goodwill recognized in results | 22 | — | 22 | — | 39 | | Gains or losses on non-current assets held for sale not classified as discontinued operations | 226 | (27) | 253 | — | (20) | | Profit or loss before tax from continuing operations | 18,681 | 17,347 | 1,334 | 7.7 | 15,005 | | Tax expense or income from continuing operations | (4,723) | (4,844) | 121 | (2.5) | (3,880) | | Profit from the period from continuing operations | 13,958 | 12,503 | 1,455 | 11.6 | 11,125 | | Profit or loss after tax from discontinued operations | 1,542 | 1,241 | 301 | 24.3 | 1,058 | | Profit for the period | 15,500 | 13,744 | 1,756 | 12.8 | 12,183 | | Profit attributable to non-controlling interests | (1,399) | (1,170) | (229) | 19.6 | (1,107) | | Profit attributable to the parent | 14,101 | 12,574 | 1,527 | 12.1 | 11,076 | Note: the summarized income statement groups some lines of the [consolidated income statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_934) of the consolidated financial statements as follows: A. ‘Gain or losses on financial assets and liabilities not measured at fair value through profit or loss, net’; ‘Gain or losses on financial assets and liabilities held for trading, net’; ‘Gains or losses on non-trading financial assets and liabilities mandatorily at fair value through profit or loss’; ‘Gain or losses on financial assets and liabilities measured at fair value through profit or loss, net’; ‘Gain or losses from hedge accounting, net’; and ‘Exchange differences, net’. B. Other operating income’; ‘Other operating expenses’; ’Income from insurance and reinsurance contracts’; and ‘Expenses from insurance and reinsurance contracts’. Annual report 2025424 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Main income statement items In accordance with IFRS 5 requirements, results associated with the business subject to the Poland disposal are reported under a single line item in the consolidated income statement — 'profit/ (loss) after tax from discontinued operations' — for the years 2025, 2024 and 2023. For further information, see section 2. 'Significant events in 2025' of this report. As a result, the consolidated income statement data for the years ended 31 December 2024 and 2023 differ from the consolidated income statement data for such periods filed with the SEC on 28 February 2025. In the consolidated balance sheet, the assets associated with the businesses subject to the Poland disposal are classified under the 'non-current assets held for sale' line item and the related liabilities under 'liabilities associated with non-current assets held for sale' solely for the year ended 31 December 2025. This classification does not affect balance sheets for the years ended 31 December 2024 and 2023. However, to facilitate analysis and ensure comparability of the information in the following tables related to average balances and volumes, profitability and cost analysis were calculated classifying assets and liabilities associated with the businesses subject to the Poland disposal under 'assets/liabilities from discontinued operations' in both of the periods presented. In 2025, profit attributable to the parent reached a new record of EUR 14,101 million, representing a year-on-year increase of 12 %, compared to the EUR 12,574 million recorded in 2024. This increase was backed by the good performance of our global businesses which grew strongly. #### Total income Total income amounted to EUR 58,670 million in 2025, compared to EUR 58,380 million in 2024, a slight increase year-on-year (+0.5%). Net interest income and net fee income accounted for around 95% of total income. By line item: #### Net interest income Net interest income amounted to EUR 42,348 million, 3 % lower than 2024, due to the impact from the sharp fall in interest rates in Argentina compared to 2024, especially in Retail, as well as a decline in Wealth. This decrease was partially offset by the good performance in Payments, boosted by higher activity, and Consumer, due to active margin management and higher volumes. The tables below show the average balances of each year calculated as the monthly average over the period, which we believe should not differ materially from using daily balances, and the interest generated. The tables below also include average balances and interest rates in 2025 and 2024, based on the domicile of the entities at which the relevant assets or liabilities are recorded. Domestic balances relate to our entities domiciled in Spain. International balances relate to entities domiciled outside of Spain (reflecting our foreign activity), and are divided into mature markets (the US and Europe, except Spain) and developing markets (South America and Mexico). The average balance of interest-earning assets in 2025 was 2% higher than in 2024. The activity of our entities in the domestic market increased 7% year-on-year and 1% in international mature markets, while in international developing markets they decreased 1%. The average balance of interest-bearing liabilities in 2025 was 1% higher year-on-year, with growth in the domestic market (+5% year-on-year) whereas international developing markets were 1% lower year-on-year and international mature markets were flat. The average return on interest-earning assets decreased from 7.03% in 2024 to 6.42% in 2025, due to the lower interest rate environment. By market, it fell 68 bps year-on-year in the domestic market, -53 bps year-on-year in our international mature markets, and -36 bps year-on-year in our international developing markets. The average cost of interest-bearing liabilities decreased 45 bps in 2025 to 3.97%. By market, domestic and international markets performed in line with the average yield on assets, decreasing 53 bps and 61 bps, respectively. However, in international developing markets it rose 22 bps. We calculated the change in interest income/(expense) shown in the tables below by: • Applying the interest rate of the previous period to the difference between the average balances from the current and previous periods to obtain the change in volumes. • Applying the difference between the rates from the current and previous periods to the average balance from the previous year to obtain the change in interest rate. Both interest income and expense decreased in 2025, mainly due to lower interest rates across most of our footprint. Annual report 2025425 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Average balance sheet - assets and interest income | | | | | | | | | EUR million | | | | | | | | | | 2025 | | | | 2024 | | | | Assets | Average balance | Interest | Average rate | | Average balance | Interest | Average rate | | Cash balances at central banks and other deposits on demand, and loans and advances to central banks and credit institutions | 282,529 | 13,663 | 4.84% | | 285,813 | 16,140 | 5.65% | | Domestic | 115,906 | 3,577 | 3.09% | | 108,705 | 4,701 | 4.32% | | International - Mature markets | 104,584 | 4,411 | 4.22% | | 114,350 | 5,700 | 4.98% | | International - Developing markets | 62,039 | 5,675 | 9.15% | | 62,758 | 5,739 | 9.14% | | | | | | | | | | | of which: | | | | | | | | | Reverse repurchase agreements | 63,091 | 4,954 | 7.85% | | 63,820 | 5,533 | 8.67% | | Domestic | 34,605 | 1,646 | 4.76% | | 32,739 | 1,901 | 5.81% | | International - Mature markets | 6,902 | 415 | 6.01% | | 8,085 | 492 | 6.09% | | International - Developing markets | 21,584 | 2,893 | 13.40% | | 22,996 | 3,140 | 13.65% | | | | | | | | | | | Loans and advances to customers | 1,022,507 | 70,830 | 6.93% | | 1,018,241 | 74,900 | 7.36% | | Domestic | 265,675 | 10,861 | 4.09% | | 265,043 | 12,272 | 4.63% | | International - Mature markets | 569,580 | 32,180 | 5.65% | | 562,488 | 33,884 | 6.02% | | International - Developing markets | 187,252 | 27,789 | 14.84% | | 190,710 | 28,744 | 15.07% | | | | | | | | | | | of which: | | | | | | | | | Reverse repurchase agreements | 71,826 | 5,234 | 7.29% | | 61,528 | 5,884 | 9.56% | | Domestic | 10,837 | 380 | 3.51% | | 12,410 | 468 | 3.77% | | International - Mature markets | 59,968 | 4,725 | 7.88% | | 48,161 | 5,310 | 11.03% | | International - Developing markets | 1,021 | 129 | 12.63% | | 957 | 106 | 11.08% | | | | | | | | | | | Debt securities | 280,413 | 15,890 | 5.67% | | 246,539 | 15,431 | 6.26% | | Domestic | 119,990 | 3,975 | 3.31% | | 94,607 | 3,478 | 3.68% | | International - Mature markets | 71,725 | 2,539 | 3.54% | | 64,140 | 2,174 | 3.39% | | International - Developing markets | 88,698 | 9,376 | 10.57% | | 87,792 | 9,779 | 11.14% | | | | | | | | | | | Income from hedging operations | | 1,420 | | | | 2,470 | | | Domestic | | 396 | | | | 152 | | | International - Mature markets | | 974 | | | | 2,001 | | | International - Developing markets | | 50 | | | | 317 | | | | | | | | | | | | Other interest | | (93) | | | | 71 | | | Domestic | | (256) | | | | (71) | | | International - Mature markets | | 35 | | | | 42 | | | International - Developing markets | | 128 | | | | 100 | | | | | | | | | | | | Total interest-earning assets | 1,585,449 | 101,710 | 6.42% | | 1,550,593 | 109,012 | 7.03% | | Domestic | 501,571 | 18,553 | 3.70% | | 468,355 | 20,532 | 4.38% | | International - Mature markets | 745,889 | 40,139 | 5.38% | | 740,978 | 43,801 | 5.91% | | International - Developing markets | 337,989 | 43,018 | 12.73% | | 341,260 | 44,679 | 13.09% | | | | | | | | | | | Other non-interest earning assets | 190,583 | | | | 193,101 | | | | Assets from discontinued operations | 67,080 | | | | 59,578 | | | | Average total assets | 1,843,112 | 101,710 | | | 1,803,272 | 109,012 | | Annual report 2025426 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Average balance sheet - liabilities and interest expense | | | | | | | | | EUR million | | | | | | | | | | 2025 | | | | 2024 | | | | Liabilities and stockholders’ equity | Average balance | Interest | Average rate | | Average balance | Interest | Average rate | | Deposits from central banks and credit institutions | 141,619 | 8,151 | 5.76% | | 151,986 | 9,381 | 6.17% | | Domestic | 63,551 | 2,594 | 4.08% | | 60,256 | 2,960 | 4.91% | | International - Mature markets | 31,824 | 1,537 | 4.83% | | 44,633 | 2,447 | 5.48% | | International - Developing markets | 46,244 | 4,020 | 8.69% | | 47,097 | 3,974 | 8.44% | | | | | | | | | | | of which: | | | | | | | | | Repurchase agreements | 69,047 | 4,696 | 6.80% | | 63,556 | 4,539 | 7.14% | | Domestic | 43,163 | 1,910 | 4.43% | | 37,663 | 1,973 | 5.24% | | International - Mature markets | 8,195 | 478 | 5.83% | | 8,773 | 579 | 6.60% | | International - Developing markets | 17,689 | 2,308 | 13.05% | | 17,120 | 1,987 | 11.61% | | | | | | | | | | | Customer deposits | 1,024,250 | 31,735 | 3.10% | | 994,107 | 35,714 | 3.59% | | Domestic | 354,809 | 3,884 | 1.09% | | 321,519 | 4,944 | 1.54% | | International - Mature markets | 471,883 | 13,336 | 2.83% | | 472,750 | 16,283 | 3.44% | | International - Developing markets | 197,558 | 14,515 | 7.35% | | 199,838 | 14,487 | 7.25% | | | | | | | | | | | of which: | | | | | | | | | Repurchase agreements | 101,424 | 7,405 | 7.30% | | 85,139 | 8,207 | 9.64% | | Domestic | 33,963 | 798 | 2.35% | | 14,124 | 586 | 4.15% | | International - Mature markets | 46,316 | 4,230 | 9.13% | | 48,115 | 5,278 | 10.97% | | International - Developing markets | 21,145 | 2,377 | 11.24% | | 22,900 | 2,343 | 10.23% | | | | | | | | | | | Marketable debt securities A | 308,272 | 15,066 | 4.89% | | 307,931 | 14,612 | 4.75% | | Domestic | 136,229 | 4,890 | 3.59% | | 147,606 | 5,330 | 3.61% | | International - Mature markets | 127,870 | 5,360 | 4.19% | | 117,291 | 5,323 | 4.54% | | International - Developing markets | 44,173 | 4,816 | 10.90% | | 43,034 | 3,959 | 9.20% | | | | | | | | | | | of which: | | | | | | | | | Commercial paper | 20,386 | 759 | 3.72% | | 25,809 | 1,244 | 4.82% | | Domestic | 11,707 | 347 | 2.96% | | 17,046 | 727 | 4.26% | | International - Mature markets | 6,962 | 265 | 3.81% | | 7,143 | 339 | 4.75% | | International - Developing markets | 1,717 | 147 | 8.56% | | 1,620 | 178 | 10.99% | | | | | | | | | | | Other interest-bearing liabilities | 22,841 | 679 | 2.97% | | 22,762 | 672 | 2.95% | | Domestic | 17,741 | 504 | 2.84% | | 17,151 | 490 | 2.86% | | International - Mature markets | 3,658 | 36 | 0.98% | | 3,707 | 17 | 0.46% | | International - Developing markets | 1,442 | 139 | 9.64% | | 1,904 | 165 | 8.67% | | | | | | | | | | | Expenses from hedging operations | | 1,762 | | | | 3,066 | | | Domestic | | 620 | | | | 1,159 | | | International - Mature markets | | 1,009 | | | | 1,325 | | | International - Developing markets | | 133 | | | | 582 | | | | | | | | | | | | Other interest | | 1,969 | | | | 1,780 | | | Domestic | | 843 | | | | 741 | | | International - Mature markets | | 388 | | | | 282 | | | International - Developing markets | | 738 | | | | 757 | | | | | | | | | | | | Total interest-bearing liabilities | 1,496,982 | 59,362 | 3.97% | | 1,476,786 | 65,225 | 4.42% | | Domestic | 572,330 | 13,335 | 2.33% | | 546,532 | 15,624 | 2.86% | | International - Mature markets | 635,235 | 21,666 | 3.41% | | 638,381 | 25,677 | 4.02% | | International - Developing markets | 289,417 | 24,361 | 8.42% | | 291,873 | 23,924 | 8.20% | | | | | | | | | | | Other non-interest bearing liabilities | 176,158 | | | | 168,212 | | | | Non-controlling interests | 8,871 | | | | 8,398 | | | | Total stockholders´ equity | 101,497 | | | | 96,744 | | | | Liabilities from discontinued operations | 59,604 | | | | 53,132 | | | | Average total liabilities and stockholders´ equity | 1,843,112 | 59,362 | | | 1,803,272 | 65,225 | | A. Does not include contingently convertible preference shares and perpetual subordinated notes because they do not accrue interest. We include them under 'Other non- interest-bearing liabilities'. Annual report 2025427 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Volume and profitability analysis | | | | | | EUR million | | | | | | | 2025 vs. 2024 | | | | | | Increase (decrease) due to changes in | | | | | Interest income | Volume | Rate | | Total change | | Cash and deposits on demand and loans and advances to central banks and credit institutions | (231) | (2,246) | | (2,477) | | Domestic | 295 | (1,419) | | (1,124) | | International - Mature markets | (460) | (829) | | (1,289) | | International - Developing markets | (66) | 2 | | (64) | | | | | | | | of which: | | | | | | Reverse repurchase agreements | (157) | (422) | | (579) | | Domestic | 104 | (359) | | (255) | | International - Mature markets | (71) | (6) | | (77) | | International - Developing markets | (190) | (57) | | (247) | | | | | | | | Loans and advances to customers | (65) | (4,005) | | (4,070) | | Domestic | 29 | (1,440) | | (1,411) | | International - Mature markets | 423 | (2,127) | | (1,704) | | International - Developing markets | (517) | (438) | | (955) | | | | | | | | of which: | | | | | | Reverse repurchase agreements | 1,080 | (1,730) | | (650) | | Domestic | (57) | (31) | | (88) | | International - Mature markets | 1,130 | (1,715) | | (585) | | International - Developing markets | 7 | 16 | | 23 | | | | | | | | Debt securities | 1,231 | (772) | | 459 | | Domestic | 866 | (369) | | 497 | | International - Mature markets | 265 | 100 | | 365 | | International - Developing markets | 100 | (503) | | (403) | | | | | | | | Income from hedging income | (1,050) | — | | (1,050) | | Domestic | 244 | — | | 244 | | International - Mature markets | (1,027) | — | | (1,027) | | International - Developing markets | (267) | — | | (267) | | | | | | | | Other interest | (164) | — | | (164) | | Domestic | (185) | — | | (185) | | International - Mature markets | (7) | — | | (7) | | International - Developing markets | 28 | — | | 28 | | | | | | | | Total interest-earning assets | (279) | (7,023) | | (7,302) | | Domestic | 1,249 | (3,228) | | (1,979) | | International - Mature markets | (806) | (2,856) | | (3,662) | | International - Developing markets | (722) | (939) | | (1,661) | Annual report 2025428 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Volume and cost analysis | | | | | | EUR million | | | | | | | 2025 vs. 2024 | | | | | | Increase (decrease) due to changes in | | | | | Interest expense | Volume | Rate | | Total change | | Deposits from central banks and credit institutions | (561) | (669) | | (1,230) | | Domestic | 155 | (521) | | (366) | | International - Mature markets | (643) | (267) | | (910) | | International - Developing markets | (73) | 119 | | 46 | | | | | | | | of which: | | | | | | Repurchase agreements | 297 | (140) | | 157 | | Domestic | 266 | (329) | | (63) | | International - Mature markets | (37) | (64) | | (101) | | International - Developing markets | 68 | 253 | | 321 | | | | | | | | Customer deposits | 277 | (4,256) | | (3,979) | | Domestic | 473 | (1,533) | | (1,060) | | International - Mature markets | (30) | (2,917) | | (2,947) | | International - Developing markets | (166) | 194 | | 28 | | | | | | | | of which: | | | | | | Repurchase agreements | 172 | (974) | | (802) | | Domestic | 550 | (338) | | 212 | | International - Mature markets | (191) | (857) | | (1,048) | | International - Developing markets | (187) | 221 | | 34 | | | | | | | | Marketable debt securities | 158 | 296 | | 454 | | Domestic | (409) | (31) | | (440) | | International - Mature markets | 460 | (423) | | 37 | | International - Developing markets | 107 | 750 | | 857 | | | | | | | | of which: | | | | | | Commercial paper | (191) | (294) | | (485) | | Domestic | (193) | (187) | | (380) | | International - Mature markets | (8) | (66) | | (74) | | International - Developing markets | 10 | (41) | | (31) | | | | | | | | Other interest-bearing liabilities | (26) | 33 | | 7 | | Domestic | 17 | (3) | | 14 | | International - Mature markets | 0 | 19 | | 19 | | International - Developing markets | (43) | 17 | | (26) | | | | | | | | Expenses from hedging expenses | (1,304) | — | | (1,304) | | Domestic | (539) | — | | (539) | | International - Mature markets | (316) | — | | (316) | | International - Developing markets | (449) | — | | (449) | | | | | | | | Other interest | 189 | — | | 189 | | Domestic | 102 | — | | 102 | | International - Mature markets | 106 | — | | 106 | | International - Developing markets | (19) | — | | (19) | | | | | | | | Total interest-bearing liabilities | (1,267) | (4,596) | | (5,863) | | Domestic | (201) | (2,088) | | (2,289) | | International - Mature markets | (423) | (3,588) | | (4,011) | | International - Developing markets | (643) | 1,080 | | 437 | Annual report 2025429 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Net interest income. Volume, profitability and cost analysis summary | | | | | | EUR million | | | | | | | 2025 vs. 2024 | | | | | | Increase (decrease) due to changes in | | | | | | Volume | Rate | | Total change | | Interest income | (279) | (7,023) | | (7,302) | | Domestic | 1,249 | (3,228) | | (1,979) | | International - Mature markets | (806) | (2,856) | | (3,662) | | International - Developing markets | (722) | (939) | | (1,661) | | | | | | | | Interest expense | (1,267) | (4,596) | | (5,863) | | Domestic | (201) | (2,088) | | (2,289) | | International - Mature markets | (423) | (3,588) | | (4,011) | | International - Developing markets | (643) | 1,080 | | 437 | | | | | | | | Net interest income | 988 | (2,427) | | (1,439) | | Domestic | 1,450 | (1,140) | | 310 | | International - Mature markets | (383) | 732 | | 349 | | International - Developing markets | (79) | (2,019) | | (2,098) | | | | --- | | | | Net interest income | | EUR million | ![4457]() | | | | --- | --- | | | | | -3% | | | 2025 vs. 2024 | | | | | | | | --- | | | | Net fee income | | EUR million | ![4463]() | | | | --- | --- | | | | | +5% | | | 2025 vs. 2024 | | | | | #### Net fee income Net fee income totalled EUR 12,976 million in 2025 and grew 5 % compared to 2024, with good performances across most businesses, especially in Wealth and Payments, boosted by higher activity. For more details, see [note 41](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1174) and [note 42](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1177) to the consolidated financial statements. Gains or losses on financial assets and liabilities and #### exchange differences (net) Gains on financial transactions and liabilities and exchange differences (net) stood at EUR 2,362 million (EUR 2,211 million in 2024), mainly due to lower impacts from foreign exchange hedges in Corporate Centre and results in Portfolio Investments in Wealth. Gains or losses on financial assets and liabilities stem from mark- to-market valuations of the trading portfolio and derivative instruments, which include spot market foreign exchange transactions, sales of investment securities and liquidation of our hedging and other derivative positions. For more details, see [note 43](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1180) to the consolidated financial statements. Exchange rate differences primarily show gains and losses from foreign exchange and the differences that arise from converting monetary items in foreign currencies to the functional currency, and from selling non-monetary assets denominated in foreign currency at the time of their disposal. Given Santander manages currency exposures with derivative instruments, the changes in this line should be analysed together with gains or losses on financial assets and liabilities. For more details, see [note 44](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1183) to the consolidated financial statements. Annual report 2025430 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Dividend income Dividend income was EUR 715 million in 2025 (EUR 710 million in 2024). #### Income from companies accounted for by the equity #### method The income from companies accounted for by the equity method reached EUR 665 million in 2025 compared to EUR 687 million in 2024. #### Other operating income/expenses Other operating income recorded a loss of EUR 396 million in 2025. This compares to a EUR 1,391 million loss in 2024 affected by a larger hyperinflation adjustment in Argentina and the charge relating to the temporary levy on revenue earned in Spain (EUR 335 million), whereas in 2025 the tax on expected revenue earned in Spain for the year was recorded under the ‘tax expense or income from continuing operations' line. For more details, see [note 45](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1186) to the consolidated financial statement. #### Operating expenses Operating expenses amounted to EUR 24,711 million in 2025, 2 % lower than 2024, reflecting our progress in transformation. Our cost management continued to focus on improving our efficiency ratio and, as a result, we remained among the most efficient global banks. Our business transformation plan, ONE Transformation, continued to progress across our footprint, reflected in increased operational leverage and better business dynamics. For more details, see [note 46](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1189) and [note 47](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1204) to the consolidated financial statements. #### Provisions or reversal of provisions Provisions (net of provisions reversals) amounted to EUR 2,729 million in 2025 compared to EUR 3,465 million in 2024 which included the charges after discontinuing our Superdigital platform in Latin America in Q2 2024. Additionally, both in Q4 2025 and Q4 2024 provisions included a charge from provisions for potential complaints related to motor finance dealer commissions in the UK (EUR 214 million and EUR 353 million, respectively). For more details, see [note 25](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1096) to the consolidated financial statements. #### Impairment or reversal of impairment of financial assets #### not measured at fair value through profit or loss (net) Impairment or reversal of impairment of financial assets not measured at fair value through profit or loss (net) was EUR 12,546 million in 2025 (EUR 12,136 million in 2024). #### Impairment on other assets (net) The impairment on other assets (net) was EUR 251 million in 2025. In 2024, the impairment amounted to EUR 624 million and included the charge registered in Q2 2024 in PagoNxt after discontinuing our merchant platform in Germany. #### Gains or losses on non-financial assets and investments #### (net) No amount was recorded in gains or losses on non-financial assets and investments (net) in 2025. In 2024, it stood at EUR 368 million and included the gain recorded in Q2 2024 from an agreement with Sodexo in Brazil (EUR 352 million). For more details, see [note 48](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1216) to the consolidated financial statements. #### Negative goodwill recognized in results In 2025, negative goodwill recognized in results was EUR 22 million relating to the acquisition of CrediScotia Financiera from Scotiabank in Q1 2025 which expands Consumer's presence in Peru. No negative goodwill was recorded in 2024. #### Gains or losses on non-current assets held for sale not #### classified as discontinued operations This item, which mainly includes impairment of foreclosed assets recorded and the sale of properties acquired upon foreclosure, recorded a EUR 226 million gain in 2025 which included a capital gain of EUR 231 million in Q2 2025 from the sale of Santander’s remaining 30.5% stake in CACEIS. In 2024, this line recorded a loss of EUR 27 million. For more details, see [note 49](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1219) to the consolidated financial statements. Annual report 2025431 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | --- | --- | --- | --- | | | | | | | Impairment or reversal of impairment of financial assets not measured at fair value through profit or loss (net) | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Financial assets at fair value through other comprehensive income | 29 | (1) | 25 | | Financial assets at amortized cost | 12,517 | 12,137 | 12,274 | | Impairment or reversal of impairment of financial assets not measured at fair value through profit or loss and net gains and losses from changes | 12,546 | 12,136 | 12,299 | | | | | | | --- | --- | --- | --- | | | | | | | Impairment on other assets (net) | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Impairment of investments in subsidiaries, joint ventures and associates, net | — | — | — | | Impairment on non-financial assets, net | 251 | 624 | 236 | | Tangible assets | 129 | 382 | 135 | | Intangible assets | 112 | 231 | 73 | | Others | 10 | 11 | 28 | | Impairment on other assets (net) | 251 | 624 | 236 | #### Profit or loss before tax from continuing operations Profit before tax was EUR 18,681 million in 2025, +8% year-on- year, supported by the good performance of net fee income and cost discipline. #### Tax expense or income from continuing operations Total income tax was EUR 4,723 million in 2025 (compared to EUR 4,844 million in 2024) which includes EUR 353 million corresponding to the expected tax on income obtained in Spain for the year. #### Profit or loss after tax from discontinued operations Profit or loss after tax from discontinued operations totalled EUR 1,542 million in 2025 compared to EUR 1,241 million in 2024. This line records the results associated with the Poland disposal, which increased year-on-year driven by a good revenue performance and lower provisions. | | | --- | | | | Profit attributable to the parent | | EUR million | ![9768]() | | | | --- | --- | | | | | +12% | | | 2025 vs. 2024 | | | | | #### Profit attributable to non-controlling interests Profit attributable to non-controlling interests stood at EUR 1,399 million in 2025 (EUR 1,170 million in 2024). For more details, see [note 28](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1126) to the consolidated financial statements. #### Profit attributable to the parent Profit attributable to the parent amounted to EUR 14,101 million in 2025, 12% higher than the EUR 12,574 million in 2024. | | | --- | | | | Earnings per share | | EUR | ![10360]() | | | | --- | --- | | | | | +17% | | | 2025 vs. 2024 | | | | | Annual report 2025432 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Underlying income statement | | | --- | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | → Fourth consecutive year of record revenue, which boosted profit to an all-time high in 2025. → Efficiency improvement and profitable growth, supported by the operational leverage resulting from the execution of ONE Transformation. → Risk indicators were robust, underpinned by good risk management and low unemployment. | | | | | | | Attributable profit | | | RoTE (post-AT1) | | RoRWA | | EUR 14,101 million | +12% in euros | | 16.3% | | 2.44% | | +16% in constant euros | | +0.8 pp | | +0.3 pp | | Note: changes vs. 2024. | | | | | | Below is the condensed income statement adjusted for items beyond the ordinary course of business and reclassification of certain items under some headings of the underlying income statement, as described in [note 52.c](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1237) to the consolidated financial statements, where our segments' aggregate underlying consolidated results are reconciled to the statutory consolidated results. In contrast to the statutory income statement, in the underlying income statement, results obtained in Poland continue to be reported line by line and disaggregated, for 2025, 2024 and 2023, as they were in previous disclosures given that the management of Santander Poland remained unchanged until the Poland disposal was completed in January 2026. For the same reason, all management metrics included in this underlying income statement section have been calculated including Poland, i.e. maintaining the same perimeter that existed at the time of the announcement of the Poland disposal. For further information, see section [6. 'Alternative performance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) [measures'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) of this chapter. The Group presents, both at the total Group level and for each of the business units, the changes in euros registered in the income statement, as well as variations excluding the exchange rate effect (i.e. in constant euros, except for Argentina and any grouping which includes it), understanding that the latter provide a better analysis of the Group’s management. For further information, see section [6.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) ['Alternative performance measures'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) of this chapter. At the Group level, exchange rates had an unfavourable year-on- year impact of 3.6 pp on total income and a favourable impact of 3.3 pp on administrative expenses and amortizations, mainly due to the depreciation of the Brazilian real and the Mexican peso. To better understand the business trends, we reclassified certain items under some headings of the underlying income statement. These reclassifications between the statutory and underlying income statements include: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | Condensed underlying income statement | | | | | | | | EUR million | | | | | | | | | | | Change | | | | | | 2025 | 2024 | Absolute | % | % excl. FX | 2023 | | Net interest income | 45,354 | 46,668 | (1,314) | (2.8) | 0.6 | 43,261 | | Net fee income | 13,661 | 13,010 | 651 | 5.0 | 9.0 | 12,057 | | Gains (losses) on financial transactions and exchange differences | 2,436 | 2,273 | 163 | 7.2 | 10.5 | 2,633 | | Other operating income | 939 | 260 | 679 | 261.2 | 269.7 | (304) | | Total income | 62,390 | 62,211 | 179 | 0.3 | 3.9 | 57,647 | | Administrative expenses and amortizations | (25,725) | (26,034) | 309 | (1.2) | 2.1 | (25,425) | | Net operating income | 36,665 | 36,177 | 488 | 1.3 | 5.1 | 32,222 | | Net loan-loss provisions | (12,411) | (12,333) | (78) | 0.6 | 5.8 | (12,458) | | Other gains (losses) and provisions | (3,387) | (4,817) | 1,430 | (29.7) | (28.4) | (3,066) | | Profit before tax | 20,867 | 19,027 | 1,840 | 9.7 | 13.4 | 16,698 | | Tax on profit | (5,341) | (5,283) | (58) | 1.1 | 4.2 | (4,489) | | Profit from continuing operations | 15,526 | 13,744 | 1,782 | 13.0 | 16.9 | 12,209 | | Net profit from discontinued operations | — | — | — | — | — | — | | Consolidated profit | 15,526 | 13,744 | 1,782 | 13.0 | 16.9 | 12,209 | | Non-controlling interests | (1,425) | (1,170) | (255) | 21.8 | 24.7 | (1,133) | | Net capital gains and provisions | — | — | — | — | — | — | | Profit attributable to the parent | 14,101 | 12,574 | 1,527 | 12.1 | 16.2 | 11,076 | | Underlying profit attributable to the parent A | 14,101 | 12,574 | 1,527 | 12.1 | 16.2 | 11,076 | A. Excluding net capital gains and provisions. Annual report 2025433 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | • In 2025: • As previously explained, in the statutory income statement, the results associated with the business subject to the Poland disposal are reported in the 'profit/(loss) after tax from discontinued operations' line. However, in the underlying income statement, the results from Poland are disaggregated across the corresponding line items as they were in previous disclosures. • In 2024: • In the statutory income statement, the results associated with the business subject to the Poland disposal are reported in the 'profit/(loss) after tax from discontinued operations' line. However, in the underlying income statement, the results from Poland are disaggregated across the corresponding line items as they were in previous disclosures. • The temporary levy on revenue earned in Spain amounted to EUR 335 million in Q1 2024, which was reclassified from total income to other gains (losses) and provisions. • The recognition of provisions to strengthen the balance sheet in Brazil, amounted to EUR 352 million gross in Q2 2024 (EUR 174 million net of tax and non-controlling interests). Additionally, regarding results that fall outside the ordinary course of our business and are therefore excluded from underlying income statement: • In 2025: • The ‘net capital gains and provisions’ line includes the following two events of the same value but opposite signs: - A capital gain in Q2 2025 of EUR 231 million from the sale of Santander’s remaining 30.5% stake in CACEIS. - A one-off charge of EUR 467 million in Q2 2025 (EUR 231 million, net of tax and minority interests), which strengthens the balance sheet after having updated macroeconomic parameters in Brazil’s credit provisioning models, in accordance with IFRS 9 regulations. • In 2024: • There were no impacts outside the ordinary course of our business and therefore no amount was recorded under the ‘net capital gains and provisions’ line. For more details, see [note 52.c](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1237) to the consolidated financial statements. As a result, profit attributable to the parent and underlying profit were the same (EUR 14,101 million in 2025 and EUR 12,574 million in 2024), with both attributable profit and underlying profit increasing 12% in euros and 16% in constant euros compared to 2024. This year-on-year comparison was mainly favoured by the charges in Q2 2024 related to the discontinuation of our merchant platform in Germany and Superdigital in Latin America (EUR 243 million, net of tax and minority interests) and the charge in Q4 2025 related to the provisions recorded for complaints related to motor finance dealer commissions in the UK that was less than the provision in Q4 2024. Total income amounted to EUR 62,390 million in 2025 and was flat year-on-year. In constant euros, total income rose 4 % year- on-year, as follows: • Net interest income (NII) totalled EUR 45,354 million and increased 1% year-on-year, even after the impact from the sharp fall in interest rates in Argentina. Excluding Argentina, NII increased 3%. By business: • In Retail, which represents 58% of the NII of the total operating areas, NII decreased 2%. Excluding Argentina, it was flat, with positive performances across most countries. Of note were Mexico, due to volumes and a lower cost of deposits, Chile supported by a lower cost of deposits and the UK, driven by higher mortgage profitability and a lower cost of deposits. • NII grew strongly (+5%) in Consumer (24% of the NII of the total operating areas), with positive trends across almost all of our footprint, boosted by active margin management and higher volumes in DCB Europe and Latin America and additionally favoured by CrediScotia's integration in Peru. • In CIB, NII increased 6%, boosted by Global Markets in Europe and the US. • In Wealth, NII decreased 14%, affected by some deposit cost inelasticity to interest rate declines in Private Banking and by the lower yield on assets in a lower interest rate environment. • In Payments, NII grew strongly, +21%, with growth in both Cards and PagoNxt, due to higher activity. • Net fee income reached EUR 13,661 million, up 9% year-on- year, achieving a new record, with growth across all businesses. This excellent net fee income performance was underpinned by higher customer activity, network benefits and greater collaboration between our global businesses. By business: • In Retail, net fee income increased 6%, supported by higher commercial activity and a larger customer base. • In Consumer , net fee income was flat, as double-digit growth in the US and Latin America was offset by lower net fee income in DCB Europe which was impacted by new insurance regulation in Germany. • In CIB, net fee income increased 9%, reaching record levels with growth in all business lines. • In Wealth, net fee income rose 17%, particularly due to Private Banking and Asset Management. • In Payments, net fee income increased 15%, driven both by PagoNxt and Cards, boosted by higher activity. Annual report 2025434 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | --- | --- | --- | --- | | | | | | | Net fee income | | | | | EUR million | | | | | | | | | | | 2025 | 2024 | 2023 | | Asset management business, funds and insurance | 4,527 | 4,374 | 3,967 | | Credit and debit cards | 2,402 | 2,352 | 2,386 | | Securities and custody services | 1,461 | 1,289 | 1,086 | | Account management and availability fees | 2,008 | 2,046 | 2,005 | | Cheques and payment orders | 795 | 842 | 826 | | Foreign exchange | 976 | 834 | 797 | | Charges for past-due/unpaid balances and guarantees | 470 | 305 | 297 | | Bill discounting | 179 | 190 | 208 | | Other | 843 | 778 | 484 | | Net fee income | 13,661 | 13,010 | 12,057 | • Gains on financial transactions and exchange differences increased 11%, mainly due to lower impacts from foreign exchange hedges in the Corporate Centre and results in Portfolio Investments in Wealth. • Other operating income improved in 2025 compared to 2024, primarily due to a less negative impact from the hyperinflation adjustment in Argentina. This positive revenue performance enabled us to achieve the target we set for the year of reaching a revenue level of around EUR 62 billion in the year. | | | --- | | | | Total income | | EUR million | ![6110]() | | | | --- | --- | | | | | 0% | A | | 2025 vs. 2024 | | | | | A. In constant euros: +4%. Administrative expenses and amortizations in 2025 totalled EUR 25,725 million, down 1% year-on-year, in line with our cost target for the year. In constant euros, costs rose 2% year-on-year. In real terms, excluding the impact of average inflation and in constant euros, they fell 1% year-on-year (for further information, see section [6. 'Alternative performance measures'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) of this chapter). We continued to progress with our business transformation plan, ONE Transformation, reflected in greater operational leverage, better business dynamics and more streamlined and agile structures. By business and in constant euros: • In Retail, administrative expenses and amortizations were flat. In real terms they fell 4%, driven by the transformation efforts through organizational and process simplification and the implementation of our global platform. The efficiency ratio improved to 39.4%. • In Consumer, administrative expenses and amortizations increased 4% year-on-year. In real terms, they grew 2%, driven by our investment in platforms and Openbank, as well as the CrediScotia integration, which were partially offset by savings from our efficiency and transformation efforts. The efficiency ratio stood at 40.6%. • In CIB, administrative expenses and amortizations increased 5% (+2% in real terms), due to our investments in new products and capabilities to support growth. The efficiency ratio stood at 45.5%, maintaining a leading position among peers. • In Wealth, administrative expenses and amortizations rose 6% (+3% in real terms), reflecting investments made to strengthen PB teams and to develop new capabilities to address the increase in commercial activity. The efficiency ratio improved to 35.3%. • In Payments, administrative expenses and amortizations grew 1%, decreasing 3% in real terms, even with our investments in platforms both in Cards and PagoNxt. The efficiency ratio improved to 39.2%. | | | --- | | | | Efficiency ratio | | % | ![32435593095861]() | | | | --- | --- | | | | | -0.6 | pp | | 2025 vs. 2024 | | | | | Our cost management continued to focus on structurally improving our efficiency. As a result, we remained one of the most efficient global banks with an efficiency ratio of 41.2%. This is a 0.6 pp improvement year-on-year. Annual report 2025435 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | --- | --- | --- | --- | | | | | | | Operating expenses | | | | | EUR million | | | | | | | | | | | 2025 | 2024 | 2023 | | Staff costs | 14,177 | 14,328 | 13,726 | | Other administrative expenses | 8,236 | 8,412 | 8,515 | | Information technology | 2,425 | 2,622 | 2,471 | | Communications | 384 | 404 | 414 | | Advertising | 544 | 540 | 603 | | Buildings and premises | 747 | 757 | 721 | | Printed and office material | 104 | 89 | 97 | | Taxes (other than tax on profits) | 544 | 556 | 570 | | Other expenses | 3,488 | 3,444 | 3,639 | | Administrative expenses | 22,413 | 22,740 | 22,241 | | Depreciation and amortization | 3,312 | 3,294 | 3,184 | | Operating expenses | 25,725 | 26,034 | 25,425 | All in all, net operating income reached EUR 36,665 million, up 1% year-on-year. In constant euros, it rose 5%, mainly driven by the good revenue performance (particularly in net fee income), which outpaced cost growth. Net loan-loss provisions in 2025 amounted to EUR 12,411 million, a 1% increase year-on-year. In constant euros, they rose 6%, mainly due to: i) higher provisions in Payments, mainly in Cards, due to strong loan growth in general and impacted by a less favourable macro environment in some of our countries; and ii) the increase in the Corporate Centre due to provisions in H1 2025 related to our plan to accelerate NPL ratio reductions, improving the Group's credit quality. This was partially offset by a 2% decrease in Retail (which accounts for around 45% of the Group's total net loan-loss provisions). | | | --- | | | | Net loan-loss provisions | | EUR million | ![9141]() | | | | --- | --- | | | | | +1% | A | | 2025 vs. 2024 | | | | | A. In constant euros: +6%. The cost of risk stood at 1.15%, meeting the Group’s 2025 target to maintain the cost of risk around 1.15%. For more details, see section [2. 'Credit risk'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_808) in the 'Risk management and compliance' chapter. Other gains (losses) and provisions recorded a loss of EUR 3,387 million in 2025, compared to a EUR 4,817 million loss 2024. This year-on-year improvement was favoured by the aforementioned charges in 2024: i) the discontinuation of our merchant platforms in Germany and Superdigital in Latin America; ii) the charge in Q4 2025 related to the provisions recorded for complaints related to motor finance dealer commissions in the UK that was less than the provision in Q4 2024; and iii) the temporary levy on revenue earned in Spain, which was recorded in this line, whereas in 2025 the expected tax on revenue earned in Spain for the year was recorded under the ‘tax on profit' line. Tax on profit amounted to EUR 5,341 million, 1% higher than in 2024. In constant euros, it rose 4%, as a lower tax burden in some countries, mainly in Brazil, did not fully offset lower benefits from fiscal incentives for electric vehicles in the US and a EUR 353 million charge in 2025 corresponding to the aforementioned tax on revenue expected in Spain for the year. Annual report 2025436 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Profit attributable to the parent in 2025 was EUR 14,101 million, a new record, and 12% more than in 2024. In constant euros, it rose 16%, supported by solid total income growth, which outstripped cost growth, which rose below inflation, and with controlled cost of risk. | | | --- | | | | Underlying profit attributable to the parent | | EUR million | ![9897]() | | | | --- | --- | | | | | +12% | A | | 2025 vs. 2024 | | | | | A. In constant euros: +16%. RoTE post-AT1 stood at 16.3% (15.5% in 2024), in line with our full-year target of reaching a ratio close to 16.5%. RoRWA stood at 2.44% (2.18% in 2024) and earnings per share stood at EUR 0.91 (EUR 0.77 in 2024). | | | --- | | | | RoTE post-AT1 | | % | ![10113]() Annual report 2025437 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 4.3 Balance sheet Since Q2 2025, the assets associated with the Poland disposal have been classified under the 'non-current assets held for sale' line item in the Group’s consolidated balance sheet, in accordance with IFRS 5 requirements and as a result of the announcement of the Poland disposal. The related liabilities have been classified under 'liabilities associated with non-current assets held for sale'. This classification applies solely to balance sheets from 30 June 2025 onwards and does not affect prior periods, which therefore limits the comparability of the balance sheets presented below. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Balance sheet | | | | | | | EUR million | | | | | | | | | | Change | | | | Assets | Dec-25 | Dec-24 | Absolute | % | Dec-23 | | Cash, cash balances at central banks and other deposits on demand | 152,281 | 192,208 | (39,927) | (20.8) | 220,342 | | Financial assets held for trading | 252,318 | 230,253 | 22,065 | 9.6 | 176,921 | | Non-trading financial assets mandatorily at fair value through profit or loss | 7,761 | 6,130 | 1,631 | 26.6 | 5,910 | | Financial assets designated at fair value through profit or loss | 8,046 | 7,915 | 131 | 1.7 | 9,773 | | Financial assets at fair value through other comprehensive income | 74,612 | 89,898 | (15,286) | (17.0) | 83,308 | | Financial assets at amortized cost | 1,202,689 | 1,203,707 | (1,018) | (0.1) | 1,191,403 | | Hedging derivatives | 3,931 | 5,672 | (1,741) | (30.7) | 5,297 | | Changes in the fair value of hedged items in portfolio hedges of interest risk | 50 | (704) | 754 | — | (788) | | Investments | 7,052 | 7,277 | (225) | (3.1) | 7,646 | | Assets under reinsurance contracts | 223 | 222 | 1 | 0.5 | 237 | | Tangible assets | 27,438 | 32,087 | (4,649) | (14.5) | 33,882 | | Intangible assets | 17,308 | 19,259 | (1,951) | (10.1) | 19,871 | | Tax assets | 30,076 | 30,596 | (520) | (1.7) | 31,390 | | Other assets | 8,719 | 8,559 | 160 | 1.9 | 8,856 | | Non-current assets held for sale | 75,011 | 4,002 | 71,009 | — | 3,014 | | Total assets | 1,867,515 | 1,837,081 | 30,434 | 1.7 | 1,797,062 | | | | | | | | | Liabilities and equity | | | | | | | Financial liabilities held for trading | 171,546 | 152,151 | 19,395 | 12.7 | 122,270 | | Financial liabilities designated at fair value through profit or loss | 42,148 | 36,360 | 5,788 | 15.9 | 40,367 | | Financial liabilities at amortized cost | 1,421,184 | 1,484,322 | (63,138) | (4.3) | 1,468,703 | | Hedging derivatives | 4,248 | 4,752 | (504) | (10.6) | 7,656 | | Changes in the fair value of hedged items in portfolio hedges of interest rate risk | 49 | (9) | 58 | (644.4) | 55 | | Liabilities under insurance contracts | 18,737 | 17,829 | 908 | 5.1 | 17,799 | | Provisions | 8,355 | 8,407 | (52) | (0.6) | 8,441 | | Tax liabilities | 9,568 | 9,598 | (30) | (0.3) | 9,932 | | Other liabilities | 15,937 | 16,344 | (407) | (2.5) | 17,598 | | Liabilities associated with non-current assets held for sale | 62,995 | — | 62,995 | — | — | | Total liabilities | 1,754,767 | 1,729,754 | 25,013 | 1.4 | 1,692,821 | | Shareholders' equity | 141,144 | 135,196 | 5,948 | 4.4 | 130,443 | | Other comprehensive income | (37,974) | (36,595) | (1,379) | 3.8 | (35,020) | | Non-controlling interest | 9,578 | 8,726 | 852 | 9.8 | 8,818 | | Total equity | 112,748 | 107,327 | 5,421 | 5.1 | 104,241 | | Total liabilities and equity | 1,867,515 | 1,837,081 | 30,434 | 1.7 | 1,797,062 | Note: this is a summarized balance sheet. For further information, see ['consolidated balance sheet'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_931)section in the consolidated financial statements. Annual report 2025438 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Executive summary A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gross loans and advances to customers (excluding reverse repos) | | | | | | | | | | | | | Customer funds (deposits excluding repos + mutual funds) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | EUR 1,024 billion | | | | +4% | | | | | | | | | EUR 1,262 billion | | +6% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | è   By segment: | | | | | | | | | | | | | è   By product: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Growth in all businesses, led by double-digit performance in CIB and Wealth. | | | | | | | | | | Growth in all products, rising double digits in mutual funds and with a pickup in demand deposits at the end of the year. | | | | | | | | | | | | | | | | | | Retail | Consumer | | | CIB | | | | | | | | | | | | | | | | | | | | | | | | +1% | +2% | | | +15% | | | | | | Demand | | | | Time | Mutual funds | | | | | | | | | | | | | Wealth | | | Payments | | | | | | | +4% | | | | +7% | +14% | | | | | | | | | | | | | +13% | | | +8% | | | | | | | | | | | | A. Includes Poland. 2025 vs. 2024 changes in constant euros. For more information on figures presented in constant euros and the exclusion of repurchase agreements and reverse repurchase agreements, see section [6. 'Alternative performance measures'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778). | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | #### Loans and advances to customers Loans and advances to customers totalled EUR 1,037,288 million in December 2025, a 2% decrease year-on-year. The year-on-year comparison was affected by the Poland disposal as, in accordance with IFRS 5 requirements and only from 30 June 2025 onwards, the assets related to the Poland disposal are aggregated under the 'non-current assets held for sale' line, without affecting assets in previous periods. For the purpose of analysing traditional commercial banking loans, the Group uses gross loans and advances to customers excluding reverse repurchase agreements (repos). We continue to analyse gross loans and advances to customers excluding reverse repos including Poland, i.e. maintaining the same perimeter that existed at the time of the announcement of the Poland disposal. As at end December 2025, gross loans and advances to customers excluding reverse repos, including Poland, totalled EUR 1,024,191 million in December 2025, a 1% increase year-on-year. To facilitate the analysis of Santander's management, the comments below do not consider the exchange rate impact (i.e., in constant euros), except for Argentina and any grouping which includes it. For further information, see section [6. 'Alternative](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) [performance measures'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) of this chapter. Gross loans and advances to customers, excluding reverse repos and in constant euros, grew 4% year-on-year, as follows: • In Retail, which represents 59% of the Group's loan portfolio, gross loans and advances grew 1%, as growth in the mortgage portfolios in most countries and higher corporate loans in Europe offset the decrease in SMEs, mainly in Spain, the UK and Portugal. • In Consumer, which represents 21% of the Group's loan portfolio, they grew 2% driven by good performances in auto markets in Europe and Latin America. • In CIB , which represents 15% of the Group's loan portfolio, lending volumes increased 15%, with double-digit growth in the three business lines. • In Wealth, gross loans and advances rose 13% driven by strong growth in Private Banking. • In Payments they increased 8%, with increases in Cards across most of our footprint. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Loans and advances to customers | | | | | | | EUR million. Including Poland | | | | | | | | | | Change | | | | | Dec-25 | Dec-24 | Absolute | % | Dec-23 | | Commercial bills | 52,901 | 53,209 | (308) | (0.6) | 55,628 | | Secured loans | 551,592 | 557,463 | (5,871) | (1.1) | 554,375 | | Other term loans | 308,695 | 296,339 | 12,356 | 4.2 | 295,485 | | Finance leases | 41,084 | 40,120 | 964 | 2.4 | 38,723 | | Receivable on demand | 10,333 | 10,756 | (423) | (3.9) | 12,277 | | Credit cards receivable | 26,555 | 24,928 | 1,627 | 6.5 | 24,371 | | Impaired assets | 33,031 | 33,731 | (700) | (2.1) | 34,094 | | Gross loans and advances to customers (excluding reverse repos) | 1,024,191 | 1,016,546 | 7,645 | 0.8 | 1,014,953 | | Reverse repurchase agreements | 74,262 | 59,648 | 14,614 | 24.5 | 44,184 | | Gross loans and advances to customers | 1,098,453 | 1,076,194 | 22,259 | 2.1 | 1,059,137 | | Loan-loss allowances | 22,138 | 22,125 | 13 | 0.1 | 22,788 | | Net loans and advances to customers | 1,076,315 | 1,054,069 | 22,246 | 2.1 | 1,036,349 | Annual report 2025439 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | --- | | | | Gross loans and advances to customers (excluding reverse repos) | | EUR billion. Including Poland | ![1532]() | | | | --- | --- | | | | | +1% | A | | 2025 vs. 2024 | | | | | A. In constant euros: +4%. As of December 2025, gross loans and advances to customers excluding reverse repos maintained a diversified structure between the markets in which the Group operates: Europe (69%), Latin America (19%) and the US (11%). At the end of 2025, 64% of loans and advances to customers maturing in more than one year had a fixed interest rate, while the other 36% had a floating interest rate: | | | --- | | | | Gross loans and advances to customers (excluding reverse repos) | | % of operating areas. December 2025. Including Poland | ![2144]() • In Spain, 53% of loans and advances to customers were fixed rate and 47% were floating rate. • Outside of Spain, 67% of loans and advances to customers were fixed rate and 33% were floating rate. For more details on the distribution of loans and advances to customers by business line, see [note 10.b](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1045) to the consolidated financial statements. | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Loans and advances to customers with maturities exceeding one year as at 31 December 2025 | | | | | | | | | | EUR million. Including Poland | | | | | | | | | | | Domestic | | | International | | | TOTAL | | | | Amount | Weight as % of the total | | Amount | Weight as % of the total | | Amount | Weight as % of the total | | Fixed | 74,310 | 53% | | 365,419 | 67% | | 439,729 | 64% | | Floating | 66,131 | 47% | | 183,311 | 33% | | 249,442 | 36% | | TOTAL | 140,441 | 100% | | 548,730 | 100% | | 689,171 | 100% | Annual report 2025440 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Total customer funds | | | | | | | EUR million. Including Polan | | | | | | | | | | Change | | | | | Dec-25 | Dec-24 | Absolute | % | Dec-23 | | Demand deposits | 685,961 | 677,818 | 8,143 | 1.2 | 661,262 | | Time deposits | 312,465 | 299,801 | 12,664 | 4.2 | 307,085 | | Mutual funds A | 263,889 | 233,722 | 30,167 | 12.9 | 208,528 | | Customer funds | 1,262,315 | 1,211,341 | 50,974 | 4.2 | 1,176,875 | | Pension funds A | 16,112 | 15,646 | 466 | 3.0 | 14,831 | | Managed portfolios A | 50,604 | 43,118 | 7,486 | 17.4 | 36,414 | | Repurchase agreements | 97,401 | 78,317 | 19,084 | 24.4 | 78,822 | | Total funds | 1,426,432 | 1,348,422 | 78,010 | 5.8 | 1,306,942 | A. Including managed and marketed funds. Customer deposits fell 1% year-on-year to EUR 1,041,200 million as at 31 December 2025. This year-on-year comparison was also affected by the Poland disposal as, in accordance with IFRS 5 requirements and only from 30 June 2025 onwards, the liabilities related to the Poland disposal are aggregated under the 'liabilities associated with non-current assets held for sale' line, without affecting liabilities in previous periods. The Group uses customer funds (customer deposits, excluding repos, plus mutual funds) to analyse traditional retail banking funds. We continue to analyse customer funds including Poland, i.e. maintaining the same perimeter that existed at the time of the announcement of the Poland disposal. As at 31 December 2025, they amounted to EUR 1,262,315 million and grew 4% year-on- year. To facilitate the analysis of Santander's management, the comments below do not consider the exchange rate impact (i.e., in constant euros), except for Argentina and any grouping which includes it. For further information, see section [6. 'Alternative](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) [performance measures'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) of this chapter. | | | --- | | | | Customer funds (excluding repos) | | EUR billion. Including Poland | ![3521]() | | | | --- | --- | | | | | Dec-25 vs. Dec-24 | | | +4% | A | | | | | +13% | | | | | | +2% | | | | | | Total | | | Mutual fundsB | | | Deposits excluding repos | | | | | A. In constant euros: +6%. B. Including managed and marketed funds. Compared to December 2024, customer funds including Poland rose 6% in constant euros, as follows: • By product, customer deposits excluding repos rose 5%, with an increase in both demand (+4%) and time deposits (+7%). Mutual funds rose 14%, with widespread increases across most businesses and countries. • By business, customer funds increased 6% in Retail, mainly driven by time deposits in Europe and South America. In Consumer, customer funds also rose 6%, in line with our deposit gathering strategy. In CIB, customer funds grew 4%, due to deposits in Cash Management. In Wealth, they were up 12%, driven mainly by mutual funds. Customer funds (including Poland) maintained a diversified structure across the markets in which the Group operates: Europe (70%), Latin America (22%) and the US (8%). The weight of demand deposits was 54% of total customer funds, while time deposits accounted for 25% and mutual funds 21%. In addition to capturing customer deposits, for strategic reasons the Group has a selective policy on issuing securities in international fixed income markets and strives to adapt the frequency and volume of its market operations to the structural liquidity needs of each unit, as well as to the receptiveness of each market. For more details on debt issuances and maturities, see section [4.4](#i6ecb2a0d58d04b53bfadfa2a833efaa7_682) ['Liquidity and funding management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_682)' in this chapter. | | | --- | | | | Customer funds (excluding repos) | | % of operating areas. December 2025. Including Poland | ![4897]() Annual report 2025441 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 4.4 Liquidity and funding management | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | Executive Summary | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Regulatory ratios | | | | | | | | | | | | | | | | | Debt issuances in 2025 | | | | | | | | | | | | | | | The LCR and NSFR ratios amply exceed regulatory requirements (both 100%) | | | | | | | | | | | | | | | | We issued around EUR 70 billion in debt in 2025, diversified by product, currency, country and maturity | | | | | | | | | | LCR A | | | | | | | NSFR | | | | | | | | | EUR 41.0 bn | | Medium- and long-term debt | | | | | | | | | | | | | | | | | | | | | | 155% | | | | | | | 126% | | | | | | | | | EUR 27.6 bn | | Securitizations | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | vs. 100% regulatory requirement | | | | | | | vs. 100% regulatory requirement | | | | | | | | | Comfortable and stable funding structure | | | | | | | | | | | | | | | | | | | | | | | | | High contribution from customer deposits | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 98% | | Loan-to-deposit ratio | | | | | | | Note: liquidity ratios as of 31 December 2025. | | | | | | | | | | | | | | | | | | | | | | | | | A. Group LCR. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | #### Liquidity management Our structural liquidity management aims to optimize maturities and costs, as well as avoid undesired liquidity risks in funding Santander’s operations, and is based on these principles: • Decentralized liquidity model. • Medium- and long-term (M/LT) funding needs must be covered by medium- and long-term instruments. • High contribution from customer deposits due to the retail nature of the balance sheet. • Wholesale funding sources diversified by instrument, investor, market, currency and maturity. • Limited use of short-term (ST) funding. • Sufficient liquidity reserves (including standing facilities/discount windows at central banks) to be used in adverse situations. • Group and subsidiary-level compliance with regulatory liquidity requirements. To apply these principles effectively across the Group, we developed a unique, three-pronged management framework: • Organization and governance. Strict organization and governance that involve subsidiaries’ senior managers in decision-making and our global strategy. Decisions about structural risks, including liquidity and funding risk, falls on the local asset and liability committees (ALCOs), which coordinate with the global ALCO. The global ALCO is empowered by Banco Santander, S.A.'s board of directors under the corporate Asset and Liability Management (ALM) framework. This enhanced governance model is part of our risk appetite framework, which meets regulatory and market standards for strong risk management and control systems. • Balance sheet and liquidity risk. In-depth analysis that supports decisions and controls to ensure liquidity levels cover short- and long-term needs with stable funding sources and optimize funding costs. Each subsidiary has a conservative risk appetite framework (based on their commercial strategy) which sets out the liquidity risk management framework. Subsidiaries must work within the framework limits to achieve their strategic objectives. • Liquidity management adapted to the needs of each unit. We prepare a liquidity plan every year to achieve: • a solid balance sheet structure, with a diversified footprint in wholesale markets; • stable liquidity buffers and limited asset encumbrance; and • compliance with regulatory and other metrics included in each entity’s risk appetite statement. We monitor all these components of the plan throughout the year. Santander continues to carry out the Internal Liquidity Adequacy Assessment Process (ILAAP) as part of its other risk management and strategic processes to measure liquidity in ordinary and stressed scenarios. The quantitative and qualitative items we consider are also inputs for the Supervisory Review and Evaluation Process (SREP). Annual report 2025442 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Once a year, we must submit a board-approved ILAAP assessment to supervisors to demonstrate that our funding and liquidity structures will remain solid in all scenarios and our internal processes will ensure sufficient liquidity (based on analyses that each subsidiary conducts according to local liquidity management models). We believe that our governance structure is robust and suited to identify, manage, monitor and control liquidity risks. It rests on common frameworks, conservative principles, clearly defined roles and responsibilities, a consistent committee structure, effective local lines of defence and well-coordinated corporate supervision. We produce frequent, detailed liquidity monitoring reports for management, control and reporting purposes. We also regularly send the most relevant information to senior managers, the pertinent ALCOs, the executive committee and the board of directors. Over the last few years, Santander and each subsidiary have developed a comprehensive special situations management framework that centralizes our governance for such scenarios. It contains contingency funding plans that form part of our governance model, including feasible, pre-assessed actions that follow a defined timeline, are categorized and prioritized, and provide for sufficient liquidity and execution time to mitigate stress scenarios. For more details, see the [4.6 'Special situations and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_688) [resolution'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_688) section in this chapter. #### Funding strategy and liquidity in 2025 #### Funding strategy and structure Our funding strategy is focused on extending our management model to all subsidiaries. It is based on a model of autonomous subsidiaries that are responsible for covering their own liquidity needs. This enables us to better understand the advantages derived from our solid retail banking model to maintain sound liquidity positions in the Group and our core local units, even amid market stress. We have adapted our funding strategies to business trends, market conditions and new regulations. In 2025, we improved specific aspects, without significant changes in liquidity management or funding policies and practices. We believe this will enable us to start 2026 from a strong position and with no growth restrictions. Our subsidiaries continue to apply the same funding and liquidity management strategies to: • maintain sufficient and stable M/LT wholesale funding levels; • ensure the right volume of assets that can be discounted in central banks as part of the liquidity buffer; and • generate liquidity from the retail business. These developments provide Santander with a very strong funding structure with the following characteristics: • Customer deposits are our main funding source. As at 31 December 2025, they represented just over two thirds of net liabilities (i.e. of the liquidity balance sheet). They are highly stable because they mainly arise from retail customer activity. For more details, see the ['Liquidity in 2025'](#i809540bc7f9b4e76ba09ee053a2f7ed4_20880) section. | | | --- | | | | Group liquidity balance sheet | | %. December 2025 | | | | | --- | --- | | | | | | | | | Financial assets | | | Fixed assets & other | | | Loans and advances to customers | | | | ![5727]() | | | | --- | --- | | | | | n | ST funding | | n | Equity and other | | n | M/LT debt issuance | | n | Securitizations and others | | n | Customer deposits | | | | Note: liquidity balance sheet for management purposes is the consolidated balance sheet, net of trading derivatives and interbank balances. For more information on the consolidated balance sheet, see the ['Consolidated financial statements'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) chapter. • M/LT funding (including M/LT debt issuances and securitizations) accounted for nearly 18% of net liabilities at the end of 2025 (similar to 2024). • The outstanding balance of M/LT debt issued (to third parties) at the end of 2025 was EUR 211,353 million. Our maturity profile is comfortable and well balanced by instrument, with a weighted average maturity of 4.3 years (similar levels to 2024 year-end). These tables show our funding by instrument over the past three years and their maturity profile: Annual report 2025443 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | --- | --- | --- | --- | | | | | | | Group. Stock of medium- and long-term debt issuances A | | | | | EUR million | | | | | | Dec-25 | Dec-24 | Dec-23 | | AT1/Preferred shares | 11,528 | 11,254 | 9,892 | | Tier 2/Subordinated | 16,542 | 23,468 | 20,708 | | Senior debt | 131,077 | 137,693 | 125,951 | | Covered bonds | 52,206 | 50,207 | 49,639 | | Total | 211,353 | 222,623 | 206,190 | A. Placed in markets. Does not include securitizations, agribusiness notes and real estate credit notes. | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | Group. Distribution by contractual maturity | | | | | | | | | | | EUR million. December 2025 | | | | | | | | | | | | 0-1 month | 1-3 months | 3-6 months | 6-9 months | 9-12 months | 12-24 months | 2-5 years | more than 5 years | Total | | AT1/Preferred shares | — | — | — | — | — | — | — | 11,528 | 11,528 | | Tier 2/Subordinated | — | — | — | 187 | 8 | 241 | 4,288 | 11,819 | 16,542 | | Senior debt | 4,275 | 2,018 | 2,182 | 2,589 | 3,213 | 24,779 | 57,084 | 34,937 | 131,077 | | Covered bonds | 3,598 | 4,958 | 1,033 | 1,285 | 222 | 11,813 | 19,227 | 10,071 | 52,206 | | Total | 7,872 | 6,976 | 3,215 | 4,061 | 3,443 | 36,833 | 80,599 | 68,354 | 211,353 | Note: There are no additional guarantees for any of the debt issued by the Group’s subsidiaries. In addition to M/LT wholesale debt issuances, we have securitizations placed in the market as well as collateralized and other specialist funding totalling EUR 70,007 million as at 31 December 2025, including EUR 13,613 million in debt instruments placed with private banking clients in Brazil. This chart shows the similarity of the geographic breakdown of our loans and advances to customers and M/LT wholesale funding across our footprint. This distribution is very similar to 2024, both in loans and in M/LT wholesale funding. | | | --- | | | | Loans and advances to customers and M/LT wholesale funding | | %. December 2025 | ![Loans eng.jpg]() Wholesale funding from short-term issuance programmes is a residual part of Santander’s funding structure, which is related to treasury activities and is comfortably covered by liquid assets. The outstanding short-term wholesale funding balance at 31 December 2025 was EUR 43,074 million, of which: 58% was in European Commercial Paper, US Commercial Paper and domestic programmes issued by Banco Santander, S.A.; 11% in certificates of deposit and commercial paper programmes in the UK; 18% in Santander Consumer Finance commercial paper programmes; and 13% in issuance programmes in other subsidiaries. #### Liquidity in 2025 The key liquidity takeaways from 2025 were: • basic liquidity ratios remained at comfortable levels; • regulatory liquidity ratios were well above minimum requirements; and • our asset encumbrance from funding operations was moderate. The Group's liquidity position in 2025 is set in the context of a gradual normalization of monetary policy at the global level. Following the tightening cycle implemented in 2023–2024 to contain inflationary pressures, most major economies have begun a transition towards more neutral monetary stances, aided by more contained inflation and better anchored expectations. In Latin American economies, this process has resulted in gradual interest rate cuts, contributing to more stable funding conditions. Annual report 2025444 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | In the US, monetary policy began to show signs of easing, amid more moderate inflation and recent changes in macroeconomic conditions. Likewise, the Bank of England continued to loosen its monetary policy, setting the benchmark rate at 3.75%. Exposure to the Term Funding Scheme with additional incentives for SMEs (TFSME) in the UK stood at GBP 11 billion as at 31 December 2024. During 2025, we repaid GBP 7.1 billion, bringing the outstanding balance at year-end to approximately GBP 3.9 billion. This more stable macroeconomic and monetary environment contributed to the Group's commercial activity not generating significant liquidity consumption during the year. Overall, subsidiaries have neither required nor provided material contributions, as credit growth was offset by deposits. However, in Spain, the increase in deposits was driven by active acquisition and retention management, while in the US, liquidity improved due to the increase in Openbank deposits. #### i) Basic liquidity ratios at comfortable levels As at 31 December 2025, Santander recorded: • A credit to net assets ratio (i.e., total assets minus trading derivatives and inter-bank balances) of 68%, a similar level to previous years. • A net loan-to-deposit ratio (LTD) of 98%, a very comfortable level (well below 120%), similar level to 100% at 31 December 2024. • A customer deposits and M/LT funding to net loans and advances ratio of 128%, broadly in line with last year. • Limited recourse to short-term wholesale funding (3% of total funding), in line with previous years. • An average structural surplus balance, defined as the excess of structural funding sources (deposits, M/LT funding and capital) against structural liquidity needs from fixed assets and loans, of EUR 379,488 million in the year. The consolidated structural surplus stood at EUR 391,124 million as at 31 December 2025. Fixed-income assets (EUR 317,794 million), equities (EUR 30,314 million) and net interbank and central bank deposits (EUR 130,385 million) were partly offset by short-term wholesale funding (-EUR 43,074 million) and short positions (-EUR 44,074 million). This totalled around 25% of our net liabilities (similar to previous years). This table shows Santander’s basic liquidity monitoring metrics in recent years: | | | | | | --- | --- | --- | --- | | | | | | | Group’s liquidity monitoring metrics | | | | | % | | | | | | Dec-25 | Dec-24 | Dec-23 | | Loans A / Net assets | 68% | 68% | 68% | | Loan A -to-deposit ratio (LTD) | 98% | 100% | 99% | | Customer deposits and medium- and long-term funding / Loans A | 128% | 128% | 127% | | Short-term wholesale funding / Net liabilities | 3% | 2% | 3% | | Structural liquidity surplus (% of net liabilities) | 25% | 24% | 23% | A. Net loans and advances to customers. The table below shows the principal liquidity ratios of our secondary segments as at 31 December 2025: | | | | | --- | --- | --- | | | | | | Secondary segments' liquidity metrics | | | | %. December 2025 | | | | | LTD ratio (loans A / deposits) | Deposits + M/ LT funding / Loans A | | Spain | 75% | 145% | | UK | 107% | 111% | | Portugal | 102% | 112% | | Poland | 74% | 143% | | Digital Consumer Bank | 169% | 85% | | US | 109% | 112% | | Mexico | 86% | 123% | | Brazil | 95% | 134% | | Chile | 135% | 94% | | Argentina | 81% | 125% | | Group | 98% | 128% | A. Net loans and advances to customers. In 2025, the key drivers of Santander's and its subsidiaries' liquidity were: • Commercial activity provided liquidity during the year. • Issuance activity remained strong, focused on covering upcoming maturities and, in the case of the UK, on repaying central bank funding. The subsidiaries completed the funding plan established for 2025. Annual report 2025445 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | In 2025, Santander issued EUR 68,633 million in M/LT funding (at year-average exchange rates). By instrument, issuances of M/LT fixed income debt (i.e., covered bonds, senior debt, subordinated debt and capital hybrid instruments) stood at EUR 41,019 million in 2025 (a 22% decrease year-on-year). Securitizations and structured finance totalled EUR 27,614 million in 2025, a 6% increase year-on-year. Spain issued the most M/LT fixed income debt (excluding securitizations), followed by the UK. In a context of lower issuance activity, Spain also recorded the largest decline, particularly in senior debt issuances, Tier 2 and senior non-preferred, while covered bonds increased. In the US, the decline is mainly explained by both issuances and lower securitization activity. The main issuers of securitizations were the US and Santander Consumer Finance. The charts below show issuances in 2025 by instrument and region: | | | --- | | | | Distribution of issuances by instrument and country | | %. 2025 | ![32435593106139]() ![32435593106140]() The issuance of eligible hybrid instruments, such as AT1 or subordinated debt, depends in part on risk-weighted asset growth. In 2025, the weight of these hybrid instruments was less than in 2024. Similarly, the weight of senior debt and covered bonds declined while securitization increased. In 2025, the Group issued, valued at the average exchange rate for the year, EUR 14,722 million in senior non-preferred and subordinated debt instruments, of which: EUR 12,505 million was senior non-preferred debt from Banco Santander, S.A., the US, the UK and Poland; EUR 717 million was subordinated debt issued by Banco Santander, S.A. and Brazil; and EUR 1,500 million of AT1 eligible hybrid instruments were issued by Banco Santander, S.A. In summary, in 2025, we retained comfortable access to all our markets having issued and securitized debt in 24 currencies, involving 30 major issuers from more than 10 countries and with an average maturity of 4.3 years. #### ii) Compliance with regulatory ratios Within the liquidity management model, Santander manages implementation, monitoring and compliance with the liquidity requirements established under international financial regulations. Liquidity Coverage Ratio (LCR) As the regulatory LCR requirement has been at 100% since 2018, we set a risk appetite of 110% at the consolidated and subsidiary level. Our good baseline short-term position liquidity, combined with the autonomous management of the ratio in all the main units, enabled us to maintain levels of over 100% throughout the year, both at the consolidated and individual levels. The Consolidated LCR ratio as at end December 2025 was 145%, comfortably exceeding internal and regulatory requirements. This ratio is calculated, at the request of the ECB, using a consolidation methodology that does not take into account any excess liquidity in excess of 100% of the LCR outflows and that is subject to transferability restrictions (legal or operational) in third countries, even if such excess liquidity can be used to cover additional outflows within the country itself, which is not subject to any restrictions. The Group LCR ratio as at end December 2025 was 155%. This ratio is calculated using an internal methodology that determines the common minimum percentage of simultaneous coverage in all Group jurisdictions, taking into account all existing restrictions on the transfer of liquidity in third countries. This methodology reflects more accurately the Group’s resilience to liquidity risk. However, given that the Group manages liquidity in a decentralized approach, the consolidated metrics are not considered a representative indicator of its liquidity position. This table shows that all our subsidiaries substantially exceeded the required minimum in 2025 and the comparison versus 2024. Santander UK’s figures only include activities that the Financial Services and Markets Act 2000 leaves within the Ring-Fenced Bank. Annual report 2025446 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | Liquidity Coverage Ratio (LCR) | | | | % | | | | | December 2025 | December 2024 | | Parent bank | 144% | 162% | | United Kingdom | 162% | 154% | | Portugal | 133% | 142% | | Poland | 219% | 220% | | Santander Consumer Finance | 212% | 263% | | US | 157% | 179% | | Mexico | 157% | 212% | | Brazil | 180% | 168% | | Chile | 185% | 181% | | Argentina | 186% | 226% | | Group LCR | 155% | 168% | | Consolidated LCR | 145% | 153% | Net Stable Funding Ratio (NSFR) Regulation (EU) 2019/876 of the European Parliament dictated that entities must have a net stable funding ratio greater than 100% from June 2021. The NSFR is a structural measure that gives banks an incentive to ensure long-term stability and proper management of maturity mismatches by funding long-term assets with long-term liabilities. It is the quotient of available stable funding (ASF) and required stable funding (RSF). ASF comprises sources of funding (i.e., capital and other liabilities) considered stable over one year. As RSF primarily refers to any asset deemed illiquid over one year, it needs to be matched with stable sources of funding. The risk appetite limit for the NSFR is set at 103% at the consolidated and subsidiary level. The high weight of customer deposits (which are more stable), permanent liquidity needs deriving from commercial activity funded by medium- and long-term instruments and limited recourse to short-term funding help maintain our balanced liquidity structure as reflected in our consolidated and subsidiary NSFRs which all exceeded 100% in December 2025. The following table provides details by entity as well as a comparison with 2024. Santander UK’s figures only include activities that the Financial Services and Markets Act 2000 leaves within the Ring-Fenced Bank. All figures were calculated using European regulations. | | | | | --- | --- | --- | | | | | | Net Stable Funding Ratio (NSFR) | | | | % | | | | | December 2025 | December 2024 | | Parent bank | 121% | 122% | | United Kingdom | 135% | 137% | | Portugal | 120% | 120% | | Poland | 156% | 156% | | Santander Consumer Finance | 116% | 116% | | US | 122% | 120% | | Mexico | 122% | 128% | | Brazil | 118% | 114% | | Chile | 112% | 112% | | Argentina | 153% | 181% | | Group | 126% | 126% | #### iii) Asset Encumbrance Santander’s use of assets as collateral in structural balance sheet funding sources is moderate. Per the 2014 European Banking Authority (EBA) guidelines on disclosure of encumbered and unencumbered assets, the concept of asset encumbrance includes on-balance-sheet assets pledged as collateral in operations to obtain liquidity, off-balance-sheet assets received and reused for a similar purpose, and other assets with liabilities for reasons other than funding. The tables below show the asset encumbrance data we must submit to the EBA as of December 2025. On-balance-sheet encumbered assets amounted to EUR 304.9 billion, of which 50% were loans and advances (e.g., mortgages and corporate loans). Off-balance-sheet encumbrance stood at EUR 185.2 billion and mainly related to debt securities received as collateral in reverse repos and reused ('rehypothecated'). In total, encumbered assets amounted to EUR 490.1 billion, giving rise to associated liabilities of EUR 472.0 billion. At the end of 2025, total asset encumbrance in funding operations was 23.1% of the Group's extended balance sheet under EBA criteria (total assets plus guarantees received: EUR 2,122.9 billion), similar percentage to 2024. Annual report 2025447 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Group. Disclosure on asset encumbrance as at 31 December 2025 | | | | | | EUR billion | | | | | | | Carrying amount of encumbered assets | Fair value of encumbered assets | Carrying amount of unencumbered assets | Fair value of unencumbered assets | | Assets | 299.8 | — | 1,537.2 | — | | Loans and advances | 168.8 | — | 1,181.0 | — | | Equity instruments | 9.6 | 9.6 | 13.9 | — | | Debt instruments | 93.8 | 94.3 | 189.7 | 190.6 | | Other assets | 27.6 | — | 152.8 | — | | | | | | --- | --- | --- | | | | | | Group. Collateral received as at 31 December 2025 | | | | EUR billion | | | | | Fair value of encumbered collateral received or own debt securities issued | Fair value of collateral received or own debt securities issued available for encumbrance | | Collateral received | 161.0 | 49.6 | | Loans and advances | 1.2 | 0.0 | | Equity instruments | 7.0 | 7.5 | | Debt instruments | 152.8 | 41.9 | | Other collateral received | — | 0.2 | | Own debt securities issued other than own covered bonds or ABSs | 0.1 | 2.3 | | | | | | --- | --- | --- | | | | | | Group. Encumbered assets/collateral received and associated liabilities as at 31 December 2025 | | | | EUR billion | | | | | Matching liabilities, contingent liabilities or securities lent | Assets, collateral received and own debt securities issued other than covered bonds and ABSs encumbered | | Total sources of encumbrance (carrying amount) | 363.0 | 460.9 | #### Rating agencies Rating agencies influence Santander’s access to wholesale funding markets and the cost of its issuances. The agencies listed below regularly review our ratings. Debt ratings depend on several internal factors (business model, strategy, capital, income generation capacity, liquidity, sustainability related factors, etc.) but also on external factors related to economic conditions, the industry and sovereign risk across our footprint. Sometimes the methodology applied by the rating agencies limits a bank's rating to the sovereign rating of the country where it is headquartered. As at end 2025, Banco Santander, S.A. was rated above the sovereign debt rating of the Kingdom of Spain in long- term senior debt by Moody's and Fitch, and rated at the same level by Standard & Poor's (S&P) and DBRS. These ratings above the sovereign demonstrate our financial strength and the benefits derived from our diversification. At the end of 2025, the ratings from the main agencies were: | | | | | | --- | --- | --- | --- | | | | | | | Rating agencies | | | | | | Long term | Short term | Outlook | | DBRS | A (High) | R-1 (Middle) | Stable | | Fitch Ratings | A (Senior A+) | F1 (Senior F1) | Stable | | Moody's | A1 | P-1 | Stable | | Standard & Poor's | A+ | A-1 | Stable | Following the upgrade of the Kingdom of Spain’s rating in September 2025, Moody’s upgraded Santander’s long-term rating to A1 and maintained the short-term rating at P-1 in October. Fitch upgraded the rating on senior long-term debt issuances to A+ in Q1 2025. In Q3 2024, S&P confirmed Santander’s credit rating at A+ for long- term debt issuances and at A1 for short term. It has maintained the rating of our AT1 instruments at BBB- (investment grade) since Q2 2024. Finally, all four agencies set the outlooks as stable, in line with the sovereign rating. Annual report 2025448 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Funding outlook for 2026 Grupo Santander has begun 2026 in a comfortable position and with a good funding outlook for the year, despite some uncertainty stemming from the global macroeconomic and geopolitical situation. We expect a moderate lending increase across our footprint, together with a good performance of deposits, which should not put pressure on liquidity in the retail business. Maturities in the coming quarters are expected to be manageable, aided by limited recourse to short-term funding and an active medium- and long-term issuance dynamic. We will manage each country and optimize liquidity to maintain a solid balance sheet structure across our footprint. Our funding plans consider costs and diversification by instrument, country and market as well as the construction of liability buffers with loss-absorbing capacity in resolution (whether capital eligible or not). We design them to ensure Santander and its subsidiaries satisfy regulatory requirements and those stemming from our risk appetite framework. Santander has been active at the beginning of 2026. Banco Santander, S.A. pre-funded approximately EUR 3.2 billion in 2025. In January 2026, the main issuers in the Group (Banco Santander, S.A., Santander UK and Santander Holdings USA) had already issued EUR 3.0 billion, which, together with the pre-funding, amounts to around EUR 6.2 billion. Due to the recent announcement of the USD 12.2 billion acquisition of Webster in the US, the financial plans of the Parent Company and the US will be reassessed to account for any necessary changes, though it is not expected to have a significant impact on our liquidity metrics. Annual report 2025449 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 4.5 Capital management and adequacy. Solvency ratios | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Executive summary | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Capital ratios | | | | | | | | | | | | | | | CET1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | The CET1 ratio increased 0.7 pp in the year to 13.5%, well ahead of our 13% year-end target and above our operating range of 12-13% | | | | | | | | | | | | | | | | Strong organic generation driven by higher profit and risk transfer and balance sheet mobilization initiatives | | | | | | | | | | | | | | | | | | % | | | Imagen1.jpg | | | | | | | | | | | | | | | Attributable profit generation in 2025 | | | | +223 bps | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | TNAV per share | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | The TNAV per share was EUR 5.76, +14% year-on-year including cash dividends paid in 2025 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Note: December 2024 ratios are reported on a fully-loaded basis, excluding the transitional arrangements under IFRS 9 and CRR2. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Capital management and adequacy at Santander aims to guarantee solvency and maximize profitability, while complying with regulatory requirements and internal capital targets. Capital management is a key strategic tool for decision-making at both the subsidiary and corporate levels. We have a common framework that covers capital management actions, criteria, policies, functions, metrics and processes. We have a team in charge of our capital analysis, adequacy and management that coordinates with subsidiaries on all matters related to capital and monitors and measures shareholder returns. Our most notable capital management activities are: • Establishing capital adequacy and capital contribution targets that align with minimum regulatory requirements, internal policies and the budget, to guarantee robust capital levels consistent with our risk profile and efficient use of capital. • Drawing up a capital plan to meet our strategic plan objectives. • Monitoring the capital ratio in both regulatory and economic terms and the efficient capital allocation to country units and global businesses. Assessing capital adequacy to ensure the capital plan is consistent with our risk profile and risk appetite framework in baseline and stress scenarios. • Integrating capital metrics into management at the  business, ensuring alignment with the Group’s objectives. Continuously monitoring stock and new business profitability as well as new business pricing at the country unit, global business, segment and customer levels, in addition to tracking businesses, portfolios and customers with profitability below the minimum target. • Coordinating and promoting the bank’s asset mobilization plan (e.g., securitizations, guarantees, sales). • Preparing internal capital reports, and reports for the supervisory authorities and the market (ICAAP, Pillar 3 reports and stress tests). • Planning and managing other loss-absorbing instruments other than regulatory capital instruments (MREL and TLAC). | | | | | | --- | --- | --- | --- | | | | | | | Santander's capital function has the following aims: | | | | | | | | | | Capital allocation | Maximize profitability in the economic cycle | | Shift towards a fee-based, capital-light model | | capital allocation.jpg | ciclo economico.jpg | | capital light.jpg | | Capital allocation based on shareholder value creation by measuring profitability on a full cost allocation basis | Sustain profitability improvements in a changing macroeconomic environment | | Continue to embrace a fee-based, capital-light model, given intense competition from peers operating with lighter capital models with more competitive pricing | | | | | | | Imagen1.jpg | | Imagen2.jpg | | | Provide economic value to shareholders | | Continue building a sound capital base | | | Improve free capital generation by increasing profitability per unit of capital deployed as well as by mitigating impacts that hinder free capital generation | | Continuously improve the Group’s capital base, while cautiously following the profitable RWA growth mandate | | | | Imagen3.jpg | | | | Santander’s goal is to generate capital growth and value creation for shareholders | | | | Annual report 2025450 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | The main measures we took in 2025 were: Issuances of hybrid capital and other loss- #### absorbing instruments In 2025, Banco Santander, S.A. issued EUR 1.5 billion in contingently convertible preferred shares (CoCos), which replaced an AT1 issuance of the same amount that was called in a tender offer, and a EUR 360 million issuance of subordinated tier 2 debt. Additionally, Banco Santander, S.A. issued around EUR 6.5 billion in senior non-preferred debt and EUR 2.4 billion of senior preferred debt. #### Dividends and shareholder remuneration The board applied the current shareholder remuneration policy to the 2025 results. This policy sets a target to allocate approximately 50% of the Group's net reported profit (excluding non-cash, non- capital ratios impact items) distributed almost evenly to cash dividends and share buybacks. Additionally, on 5 February 2025, Banco Santander signalled its objective to allocate up to EUR 10 billion to share buybacks in relation to the 2025 and 2026 results, as well as expected capital excess. As part of this target, on 5 May 2025 Banco Santander announced its intention to distribute approximately 50% of the capital that will be released upon completion of the sale of its 49% stake in Santander Bank Polska S.A., through a share buyback of approximately EUR 3.2 billion in early 2026 and that, as a result, it could exceed the EUR 10 billion target. Upon announcing the agreements to acquire TSB and Webster on 1 July 2025 and 3 February 2026 respectively, Banco Santander confirmed its goal to distribute at least EUR 10 billion in share buybacks with regard to the 2025 and 2026 results and excess capital. In execution of the above, shareholder remuneration for financial year 2025 comprised the following: • Interim remuneration. • On 30 July 2025, the board resolved to execute the First 2025 Buyback Programme worth up to EUR 1,700 million (equivalent to approximately 25% of the Group's net reported profit in H1’25). For further details, see ['First 2025 Buyback](#i74972a41bd0e4a4d813da306e4585962_9019) [Programme'](#i74972a41bd0e4a4d813da306e4585962_9019) in the 'Corporate governance' chapter. • On 30 September 2025, the board resolved to pay an interim cash dividend in relation to the 2025 results of 11.5 euro cents per share entitled to the dividend (equivalent to approximately 25% of the Group's net reported profit in H1’25), which was paid from 3 November 2025. • Final remuneration. • On 3 February 2026, the board of directors resolved to implement the Second 2025 Buyback Programme worth up to EUR 5,030 million and for which the required regulatory authorization had been obtained. The programme started on 4 February 2026. For more details, see ['Second 2025 Buyback](#i74972a41bd0e4a4d813da306e4585962_9020) [Programme'](#i74972a41bd0e4a4d813da306e4585962_9020) in the 'Corporate governance' chapter. • On 24 February 2026, the board of directors resolved to submit to the 2026 AGM the approval of a final cash dividend in the gross amount of 12.5 euro cents per share entitled to dividend. Subject to AGM approval, the dividend will be payable from 5 May 2026. Once these actions are completed, total shareholder remuneration in relation to the 2025 results will be EUR 7,050 million (approximately 50% of the Group's 2025 net reported profit, excluding non-cash, non-capital ratios impact items), split almost evenly between cash dividends (EUR 3,520 million) and share buybacks (EUR 3,530 million). For more details, see section [3.3](#i6ecb2a0d58d04b53bfadfa2a833efaa7_496) ['Dividends and shareholder remuneration'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_496)in the 'Corporate governance' chapter. #### Strengthening our active capital management #### culture We continue to focus on disciplined capital allocation and shareholder remuneration after achieving our 2025 objective of maintaining a CET1 ratio in our 12-13% operating range and ending the year above 13%. In 2026, our operating range remains between 12-13% and we have set the objective of ending the year between 12.8-13% following the acquisition of Webster. Continuous improvement of our capital ratios reflects our profitable growth strategy and a culture of active capital management at all levels. The Capital and Profitability Management team is in charge of our capital analysis, adequacy and management, coordination with subsidiaries on all matters related to capital and monitoring and measuring returns. Every country and business unit has drawn up individual capital plans that focus on maximizing return on equity. Santander places high value on its long-term sustainability and the efficient use of capital in the incentives of the Group's main executives. We considered certain aspects relating to capital management and returns when setting senior managers' 2025 variable remuneration including return on risk-weighted assets (RoRWA), return on tangible equity (RoTE) and other relevant capital metrics (capital generation or CET1). For more information, see section [6.3 'Remuneration of directors for executive duties'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_571) in the Corporate governance chapter. A. Phased-in CRR 3. Annual report 2025451 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | --- | | | | CET1 ratioA | | % | ![6553]() | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Regulatory phased-in CET1 ratioB | | | | | | % | | | | | | | 12.3 | 12.8 | 13.5 | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Main capital data and solvency ratios | | | | | | EUR million | | | | | | | Dec-25 | | Dec-24 | | | | Phased inB | | Phased inB | Fully loadedC | | Common equity (CET1) | 84,739 | | 79,800 | 79,705 | | Tier1 (T1) | 94,385 | | 90,170 | 90,076 | | Eligible capital | 111,845 | | 108,589 | 107,106 | | Risk-weighted assets | 629,430 | | 624,503 | 624,477 | | CET1 capital ratio | 13.5% | | 12.8% | 12.8% | | T1 capital ratio | 15.0% | | 14.4% | 14.4% | | Total capital ratio | 17.8% | | 17.4% | 17.2% | | Leverage ratio | 4.90% | | 4.78% | 4.78% | A. 2023 and 2024 ratios are fully loaded, while the 2025 ratio is phased in. B. The phased-in ratios include the transitory treatment of IFRS 9, calculated in accordance with article 473 bis of the Regulation on Capital Requirements (CRR) and subsequent amendments introduced by Regulation 2020/873 of the European Union. Additionally, the Tier 1 and total phased-in capital ratios include the transitory treatment according to chapter 2, title 1, part 10 of the aforementioned CRR. C. CRR 3 fully-loaded criteria are not yet fully defined. However, our estimate for the fully-loaded CET1 ratio is comfortably above our >12% Investor Day target for 2025. #### Capital ratios in 2025 After applying the transitory CRR provisions, the phased-in CET1 ratio at the end of 2025 was 13.5%, a 0.7 pp increase in the yearA. The growth in the CET1 ratio was driven by 223 bps of capital generation from attributable profit and by positive impacts from markets and others (mostly HTC&S portfolio valuations). These were partially offset by a -121 bp impact related to capital distributions, including the deduction for the accrual of shareholder remuneration against profit earned in 2025 (in line with our 50% payout target) and AT1 costs. Net RWA growth in the year resulted in a 25 bp charge (risk transfer initiatives partly compensated organic RWA growth). Additionally, we recorded -16 bps related to regulatory headwinds. In January 2026, Santander completed the disposal of Santander Poland (see section 2. 'Significant events in 2025' in this chapter) which generated c.95 bps of additional capital, deployed to shareholders via an additional share buyback (which commenced on 4 February 2026) and towards the acquisition of TSB, once completed, with impacts estimated at c.-55 bps and c.-50 bps, respectively. | | | --- | | | | CET1 ratio in 2025 | | % | ![8025]() A. The December 2024 ratio is reported on a fully-loaded basis, excluding the transitional arrangements under IFRS 9 and CRR 2. B. Deduction for expected shareholder remuneration and AT1 costs. Our target payout for 2025 results is approximately 50% of Group reported profit (excluding non-cash, non-capital ratios impact items), divided approximately equally between cash dividends and share buybacks. The implementation of the shareholder remuneration policy is subject to future corporate and regulatory decisions and approvals. Annual report 2025452 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Regulatory capital ratios (phased-in) The phased-in ratios are calculated by applying the CRR transitory schedules. In general terms, the CRR 2 transitory schedule ended on 31 December 2024 while the CRR 3 phase applies from 1 January 2025. On a consolidated basis, the minimum levels required by the European Central Bank in 2025 were 9.8% for the CET1 ratio and 14.1% for the total capital ratio. Our capital requirements increased in 2025 compared to 2024 due to: • higher countercyclical buffer requirements by the competent authorities in the countries in which we operate (+0.17 pp), mainly due to the activation of a countercyclical buffer of 0.50% of exposures in Spain; and • a greater systemic risk buffer requirement (+0.03 pp). At year end, the phased-in CET1 ratio was 13.5%, resulting in a CET1 management buffer of 362 bps. This shows our ability to generate capital organically, our solid position to be able to pay dividends and our strong capital management. The total phased-in capital ratio was 17.8%. Taking into account the shortfall in AT1, Santander exceeded the 2025 minimum regulatory requirements (i.e. distance to the maximum distributable amount - MDA) by 333 bps. The phased-in leverage ratio stood at 4.90%. ![CET1 eng.jpg]() A. Countercyclical buffer. B. Systemic risk buffer. C. Global systemically important banks (G-SIB) buffer. D. Capital conservation buffer. | | | | --- | --- | | | | | Regulatory capital (phased-in). Flow statement | | | EUR million | | | | 2025 | | Capital Core Tier 1 (CET 1) | | | Starting amount (31/12/2024) | 79,800 | | Shares issued in the year and share premium | (3,519) | | Treasury shares and own shares financed | (198) | | Reserves | (1,376) | | Attributable profit net of dividends | 10,576 | | Other retained earnings | (1,301) | | Minority interests | 558 | | Decrease/(increase) in goodwill and other intangible assets | 920 | | Other | (722) | | Ending amount (31/12/2025) | 84,739 | | Additional Capital Tier 1 (AT1) | | | Starting amount (31/12/2024) | 10,371 | | AT1 eligible instruments | (788) | | AT1 excesses - subsidiaries | 63 | | Residual value of intangible assets | — | | Deductions | — | | Ending amount (31/12/2025) | 9,645 | | Capital Tier 2 (T2) | | | Starting amount (31/12/2024) | 18,418 | | T2 eligible instruments | (1,115) | | Generic funds and surplus loan-loss provisions-IRB | — | | T2 excesses - subsidiaries | 157 | | Deductions | — | | Ending amount (31/12/2025) | 17,460 | | Deductions from total capital | — | | Total capital ending amount (31/12/2025) | 111,845 | Annual report 2025453 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | These tables show the total risk-weighted assets (comprising the denominator of capital requirements based on risk) as well as their geographic distribution. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Risk-weighted assets (phased-in CRR, phased-in IFRS 9) | | | | | | EUR million | | | | | | | RWAs | | | Minimum capital requirements | | | Dec-25 | Dec-24 | | Dec-25 | | Credit risk (excluding CCR) A | 471,745 | 499,560 | | 37,740 | | Of which: standardized approach (SA) | 280,993 | 283,612 | | 22,479 | | Of which: the foundation IRB (FIRB) approach | 52,965 | 59,981 | | 4,237 | | Of which: slotting approach B | 15,018 | 13,840 | | 1,201 | | Of which: IRB equities under the simple risk-weighted approach | 3,250 | 4,724 | | 260 | | Of which: the advanced IRB (AIRB) approach | 114,036 | 129,919 | | 9,123 | | Counterparty credit risk (CCR) | 14,081 | 18,089 | | 1,127 | | Of which: standardized approach | 11,816 | 15,035 | | 945 | | Of which: internal model method (IMM) | — | — | | — | | Of which: exposures to a CCP | 372 | 294 | | 30 | | Of which: other CCR | 1,894 | 2,761 | | 152 | | Credit valuation adjustments risk - CVA risk | 2,461 | 679 | | 197 | | Of which the basic approach (F-BA and R-BA) | 2,461 | 679 | | 197 | | Settlement risk | 555 | 173 | | 44 | | Securitization exposure in the banking book (after the cap) | 16,683 | 15,705 | | 1,335 | | Of which: SEC-IRBA approach | 7,547 | 7,285 | | 604 | | Of which: SEC-ERBA approach | 2,454 | 2,484 | | 196 | | Of which: SEC-SA approach B | 6,682 | 5,935 | | 535 | | Of which: 1,250% deduction C | — | — | | — | | Position, foreign exchange and commodities risks (Market risk) | 21,478 | 17,946 | | 1,718 | | Of which: standardized approach | 11,853 | 10,693 | | 948 | | Of which: internal model approach (IMA) | 9,625 | 7,253 | | 770 | | Large exposures | — | — | | — | | Operational risk | 102,427 | 72,351 | | 8,194 | | Amounts below the thresholds for deduction (subject to 250% risk weight) | 24,315 | 22,656 | | 1,945 | | Output floor applied (%) | 50% | N/A | | N/A | | Total B | 629,430 | 624,503 | | 50,354 | A. Includes equities under the PD/LGD approach. B. For more detail, see Pillar 3 report. C. Information prepared following the update of the EBA (24.05.22, 'ITS on institutions’ Pillar 3 public disclosures'). Banco Santander, S.A. deducts from capital those securitizations that meet the deduction requirements, and therefore does not apply a 1,250% weighting to these exposures. This row does not include the EUR 7,742 million in 2025 and EUR 8,367 million in 2024 that would result from applying this weighting to these exposures. Annual report 2025454 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | RWAs by geographical distribution (phased-in CRR, phased-in IFRS 9) | | | | | | | | | | EUR billion | | | | | | | | | | | TOTAL | EUROPE | o/w: Spain | o/w: United Kingdom | NORTH AMERICA | o/w: US | SOUTH AMERICA | o/w: Brazil | | Credit risk (excluding CRR) | 505 | 313 | 169 | 55 | 78 | 52 | 114 | 80 | | of which, standardised approach (SA) | 280 | 122 | 47 | 18 | 67 | 50 | 91 | 59 | | of which, internal rating-based (IRB) approach | 183 | 156 | 95 | 33 | 8 | 0 | 18 | 17 | | of which, securitizations A | 17 | 14 | 10 | 2 | 2 | 2 | 0 | 0 | | of which, rest | 26 | 20 | 17 | 1 | 2 | 1 | 5 | 3 | | Market risk | 21 | 16 | 16 | 0 | 1 | 1 | 4 | 2 | | Operational risk | 102 | 52 | 25 | 12 | 21 | 16 | 23 | 8 | | Total | 629 | 381 | 210 | 68 | 100 | 70 | 142 | 90 | Note: breakdown according to debtor’s residency, except operational risk (management criteria). Counterparty RWAs are included in the IRB/STD approaches. The amounts shown in the table are presented in EUR billion, therefore, the amounts have been rounded. Consequently, in certain instances, the sum of the numbers in a column or a row in tables contained in this report may not conform exactly to the total figure given for that column or row. A. It does not include 1,250% deductions. See footnote C in the previous table. ![Mapa capital ing.jpg]() Note: EUR 6 billion allocated to other countries (1% of total Group RWAs). Annual report 2025455 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | This table presents the main changes to capital requirements from credit risk: | | | | | --- | --- | --- | | | | | | Credit risk capital movements A | | | | EUR million | | | | | RWAs | Capital requirements | | Starting amount (31/12/2024) | 533,207 | 42,657 | | Asset size | 11,960 | 957 | | Asset quality | (1,814) | (145) | | Model updates | 2,636 | 211 | | Methodology and policy | (26,227) | (2,098) | | Acquisitions and disposals | 470 | 38 | | Foreign exchange movements | (17,564) | (1,405) | | Other | — | — | | Ending amount (31/12/2025) | 502,668 | 40,213 | A. Includes capital requirements from equity, securitizations and counterparty risk (excluding CVA and CCP). Credit risk RWAs decreased EUR 30,539 million in 2025. This was largely due to 'Methodology and policy' driven by changes introduced by the new CRR 3 capital regulation, which resulted in an impact of -EUR 27,310 million (primarily in advanced models due to the removal of the scaling factor, the application of the effective maturity (M) in F-IRB and the reduction of unsecured LGD in corporate exposures under the F-IRB approach). Risk-weighted assets also declined due to the impact of exchange rates, -EUR 17,564 million (mainly the US dollar and the pound sterling) and, to a lesser extent, to 'Asset quality'. These reductions were partially offset by increases in 'Asset size', with generalized growth across businesses, mitigated, in part, by securitizations (-EUR 24,621 million in the year). 'Model updates' also contributed to RWA growth (+EUR 2,636 million). #### Economic capital Economic capital is the capital required to cover all risks from our activity with a certain level of solvency. We measure it using an internal model. To calculate the required capital, we determine our solvency level based on our long-term rating target of 'A' (in line with the Kingdom of Spain); this represents a confidence level of 99.95% (above the regulatory level of 99.90%). Our economic capital model measurements cover all significant risks incurred in our activity (concentration risk, structural interest rate risk, business risk, pensions risk, deferred tax assets (DTAs), goodwill and others that are beyond the scope of regulatory Pillar 1). It also considers diversification, which is key to determining and understanding our risk profile and solvency in view of our multinational operations and businesses. Our total risk and related economic capital are less than the sum of the risk and capital of all individual units combined. Because our business spans several countries in a structure of separate legal entities with different customer and product segments and risk types, our earnings are less vulnerable to adverse situations for any given market, portfolio, customer type or risk. Despite increasing economic globalization, economic cycles and their impact differ by country. Groups with a global presence tend to have more stable results and are more resistant to market or portfolio crises, which translates into lower risk. In contrast to regulatory criteria, we consider such intangible assets as DTAs and goodwill to retain value (even in a hypothetical resolution), owing to the geographic structure of our subsidiaries. Thus, we can value assets and estimate their unexpected loss and capital impact. Economic capital is an essential internal management tool that helps us develop our strategy, assess solvency and manage portfolio and business risk. As such, it is a key part of the Supervisory Review and Evaluation Process (SREP). Regarding Basel Pillar 2, we use our economic model for the internal capital adequacy assessment process (ICAAP). We plan business progression and capital needs under a baseline scenario and alternative stress scenarios to make sure we meet our solvency objectives, even in adverse scenarios. Economic capital-derived metrics help us assess risk-return objectives, price operations based on risk, determine how economically viable projects are, and value country units and business lines to fulfil our overriding objective of maximizing shareholder value. As a homogeneous risk measure, we can use economic capital to explain how we distribute risk throughout Santander, bringing together several activities and risk types under a single metric. Given its relevance to internal management, Santander includes several economic capital-derived metrics from both a capital needs and a risk-return point of view, within a conservative risk appetite framework established at both Group and subsidiary levels. Required economic capital in December 2025 amounted to EUR 70,594 million. Compared to the available economic capital base of EUR 101,053 million, this implies a capital surplus of EUR 30,459 million. Annual report 2025456 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | Reconciliation of economic and regulatory capital | | | | EUR million | | | | | Dec-25 | Dec-24 | | Net capital and issuance premiums | 42,245 | 45,961 | | Reserves and retained profits | 95,237 | 85,979 | | Valuation adjustments | (40,445) | (38,323) | | Minority interests | 9,037 | 8,485 | | Prudential filters | (797) | (912) | | Other | (4,224) | (4,847) | | Base economic capital available | 101,053 | 96,342 | | Deductions | (16,484) | (17,379) | | Goodwill | (12,905) | (13,664) | | Other intangible assets | (2,132) | (2,293) | | DTAs | (1,447) | (1,423) | | Other | 170 | 743 | | Base regulatory (CET1) capital available A | 84,739 | 79,705 | | | | | | Base economic capital available | 101,053 | 96,342 | | Economic capital required B | 70,594 | 69,984 | | Capital surplus | 30,459 | 26,358 | | | | --- | | | | A.2024 data fully loaded, 2025 phased in. | | B. For a better comparison with regulatory capital, the differences in goodwill due to FX changes are included in the required economic capital. All figures according to EC 2025 methodology. | The main difference compared to regulatory CET1 is the treatment of goodwill, other intangible assets and DTAs; we consider them additional capital requirements rather than a deduction from available capital. #### Profitability metrics and Economic Value Added One of the Group's primary priorities is to manage capital by ensuring that we make a profitable allocation of capital in all our activities. Our strategy includes investing capital in markets, country units, global businesses and portfolios with the highest returns on capital, ensuring strong and sustainable shareholder value creation. Metrics such as RoTE, RoRWA and RoRAC are part of approvals and monitoring policies. These metrics help us compare the return on operations, customers, portfolios and businesses on a like-for-like basis. We can identify what is obtaining a risk-adjusted return higher than its cost of capital and thus align risk and business management to maximize economic value added (EVA). We regularly assess the level and progression of EVA across the Group's country units and global businesses, both from a regulatory and economic capital point of view. EVA is the profit generated above the cost of capital employed. The minimum return on capital a transaction must obtain is determined by the cost of capital (i.e. the minimum compensation required by shareholders). We calculate it by adding the premium shareholders demand to invest in Santander to the risk-free return. The premium depends essentially on the degree of volatility in our share price with respect to market performance. Santander's cost of capital in 2025 was 12.0% (similar to 2024). On top of reviewing the cost of capital every year, we also estimate a cost of capital for each business unit based on its features (under the philosophy that subsidiaries manage capital and liquidity autonomously) to determine whether each business is capable of creating value on a standalone basis. In 2025, we generated EUR 6.2 billion EVA for our shareholders. The following table shows the Group's economic value added and RoRAC at the end of December 2025. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Economic Value Added and RoRAC | | | | | | | EUR million | | | | | | | | 2025 | | | 2024 | | | | RoRAC | EVA | | RoRAC | EVA | | Total Group | 19.9% | 6,160 | | 17.5% | 4,332 | Additionally, we also internally use a Shareholder Value Added (SVA) view which adjusts components that affect shareholder value creation but are not reflected in results. Identifying and managing businesses with low profitability is part of the Group's capital optimization process. We dynamically target and actively monitor customers, portfolios, global businesses and markets with attractive returns on capital. To ensure improved profitability and maximize capital productivity, we must focus on capital efficiency from origination. Pricing is an objective process based on the characteristics of the transaction, product, borrower, segment and market. Furthermore, it should ensure that the price exceeds a minimum threshold covering at least funding, operating, credit and capital costs, as well as an additional spread that takes into account demand sensitivity to prices and value generation. Therefore, pricing should aim to maximize profitability, with positive EVA for every transaction, customer, portfolio and/or global business, and ensure compliance with minimum return on capital targets. Annual report 2025457 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Santander has granular approval tools for the CIB and corporate segments which it uses to calculate the return on both regulatory and economic capital (RoRWA and RoRAC) and determine appropriate pricing. For retail segments, tools are locally developed by the units, tailoring them to the individual characteristics of each market. We also employ a granular tool to track returns on capital on a like-for-like basis between units. Our approval tools enable us to identify and justify any new loans with a pricing below the minimum threshold and our monitoring tools enable us to identify operations with profitability below the cost of capital, thereby recurrently destroying value. To try to ensure that all customer relationships add value, we regularly monitor and actively manage low performing customers through specific action plans. Both approvals and profitability monitoring have a robust approval and review governance which: i) ensures the consideration of minimum pricing thresholds are properly integrated into capital processes; ii) establishes a timely scaling/authorizing process; and iii) that detailed follow-ups are carried out for operations approved below the minimum threshold. #### Capital planning and stress tests Capital stress test exercises are a key tool in banks' dynamic assessments of their risks and solvency. These forward-looking reviews are based on unlikely-but-plausible macroeconomic and idiosyncratic scenarios. They require robust planning models that can translate the effects defined in the projected scenarios to elements that affect solvency. The ultimate aim of these exercises is to assess risks and solvency thoroughly to determine capital requirements if a bank fails to meet its regulatory and internal capital objectives. Santander has an internal capital stress and planning process to respond to various regulatory exercises and is a key tool integrated within management and strategy. They aim to ensure sufficient current and future capital, even in unlikely-but-plausible economic scenarios. We estimate results in various business environments (including severe recessions as well as expected macroeconomic environments), based on our initial situation (defined using financial statements, capital base, risk parameters and regulatory and economic ratios) to determine our solvency ratios, usually for a three-year period. Planning offers a comprehensive view of our capital for the analysed period and in each of the defined scenarios based on regulatory capital and economic capital metrics. This chart describes the structure in place: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | | | | | | 1 | Macroeconomic scenario | | • Central and recession • Idiosyncratic: based on specific risks the entity faces • Multi-year horizon • Reverse stress tests | | | | | | | | | | | | 2 | Balance sheet and income statement forecasts | • Projection of volumes . Business strategy • Margins and funding costs • Fees and operating expenses • Market shocks and operational losses • Credit losses and provisions . PIT LGD and PD models • IFRS 9 models and migration among stages | | | | | | | | | | | | 3 | Capital requirements forecasts | • Consistent with projected balance sheet • Regulatory and economic risk parameters (PD, LGD and EAD) | | | | | | | | 4 | Solvency analysis | • Available capital base. Profits and dividends • Regulatory and legislative impacts • Capital and solvency ratios • Compliance with capital objectives • Regulatory and economic view | | | | | | | | | | | | 5 | Action plan | • In the event of failure to comply with internal objectives or regulatory requirements | | | | | | | | Annual report 2025458 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | This structure supports the ultimate objective of capital planning, by making it an important strategic component that: • ensures current and future solvency, even in adverse economic scenarios; • facilitates communication with the market and supervisors; • ensures comprehensive capital management, analyses specific effects and integrates them into strategic planning; • enables a more efficient use of capital; and • helps formulate our capital management strategy. Senior managers are fully involved in and closely oversee capital planning under a framework that ensures proper governance and is subject to robust challenge, review and analysis. In capital planning and stress analysis exercises, calculating the required provisions under stress scenarios is key, especially to cover losses on credit portfolios. It is particularly important for income statement forecasts under adverse scenarios. To calculate loan-loss provisions of the credit portfolio, we use a methodology that ensures provisions cover loan losses projected by internal expected loss models, based on exposure at default (EAD), probability of default (PD) and loss given default (LGD) parameters, at all times. In 2018, we adapted this methodology to incorporate changes brought in by the new IFRS 9 regulations, with models to calculate balances by stages (S1, S2, S3) as well as the movements between them and the loan-loss provisions in accordance with the new standards. Our capital planning and stress analysis culminate in an analysis of solvency under various scenarios over a set period to measure capital adequacy and ensure we meet all internal capital and regulatory requirements. Should we fail to meet our capital objectives, we would draw up an action plan with the measures needed to attain the minimum capital desired. We analyse and quantify those measures as part of internal exercises even if we don't need to use them as we exceed the minimum capital thresholds. Santander carries out its internal stress and capital planning transversally throughout the Group, at the consolidated and local levels. Our subsidiaries use it as an internal management tool, particularly to respond to local regulatory requirements. We have undergone 10 external stress tests since the beginning of the economic crisis in 2008. Every test proved our strength and solvency in the most extreme and severe macroeconomic scenarios showing that, owing to our business model and geographic diversification, we would still be capable of generating a profit for shareholders while satisfying the most demanding regulatory requirements. The ECB determines and sets Pillar 2 Guidance (P2G) according to the results of the adverse scenario in these supervisory stress tests, including the EU-level stress tests carried out by the EBA. When determining the P2G, the ECB considers the maximum impact expected on the CET1 ratio, which, for this purpose, is the difference between the lowest CET1 ratio in the adverse scenario over the projection horizon and the real CET1 ratio at the starting point. The following section details the result of the latest ECB and EBA stress test in 2025. We have also conducted internal stress tests every year since 2008 as part of our ICAAP (Basel Pillar 2). Every test has proven our capacity to confront the most difficult exercises globally and locally. We carry out these capital planning processes using tools shared throughout the Group. We incorporate an analysis of the potential impact of climate risks (transition risk and physical risk) into internal stress exercises in addition to expressly considering them in the macroeconomic scenario definitions, in line with industry best practices and supervisory expectations. In 2022, Santander participated in the ECB's first climate risk stress test comprising three parts: i) the supervisor assessed entities’ internal capacities; ii) the entities provided information on their main customers' emissions and revenue shares by activity sector to the supervisor; and iii) the ECB made projections under various transition risk, heat wave risk and flood risk scenarios. The ECB published aggregate results for the industry as a whole. Annual report 2025459 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### ECB and EBA 2025 stress test In August 2025, the European Banking Authority (EBA) published the results of its 2025 EU-wide stress test, which involved the major European banks, in coordination with the European Central Bank (ECB) and the European Systemic Risk Board (ESRB). This exercise assesses the resilience of these banks' main balance sheet and income statement items under two different macroeconomic scenarios (baseline and adverse). The balance sheets as at 31 December 2024 were taken as a starting point and the expected behaviours of business models of each of the banks were compared in order to gauge the expected losses and the ability of the balance sheet to withstand such losses without requiring external support. On this occasion, as with previous exercises, there was no minimum capital threshold to meet. Instead, results will be taken into account when determining the SREP requirements. The baseline scenario assumes the most likely economic performance according to the models used by the supervisor. The very unlikely adverse scenario assumes a severe deterioration in both macroeconomic and global financial market conditions. This year's adverse scenario assumes a severe global downturn caused by a hypothetical escalation in geopolitical tensions leading to a contraction in GDP, sustained inflation and a rise in unemployment. The GDP scenarios used to project the evolution of the Group's main countries were as follows: | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | Gross Domestic Product (GDP) | | | | | | | | | | | | | | | | | | | Change (%) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Spain | | | UK | | | US | | | Mexico | | | Brazil | | | Chile | | | | 2025 | 2025-27 | | 2025 | 2025-27 | | 2025 | 2025-27 | | 2025 | 2025-27 | | 2025 | 2025-27 | | 2025 | 2025-27 | | Baseline scenario | 2.5 | 6.1 | | 1.5 | 4.5 | | 2.2 | 6.3 | | 1.3 | 5.6 | | 2.2 | 6.9 | | 2.4 | 7.3 | | Adverse scenario | (2.5) | (4.0) | | (4.5) | (10.3) | | (5.1) | (3.3) | | (4.7) | (7.0) | | (3.3) | (2.9) | | (5.1) | (3.2) | Since 2008, the Group has undergone 10 stress tests and demonstrated in all of them the strength of its business model and, consequently, that its solvency levels are sufficient to face the most severe macroeconomic scenarios. Our business and geographic diversification provides us with more stable and non-interrelated sources of income, so that even if the macroeconomic situation were to deteriorate globally, we would be capable of generating profit for our shareholders while satisfying the most demanding regulatory requirements, and thereby ensure an adequate capital position in line with regulatory requirements. | | | --- | | | | Fully-loaded CET1 ratio 2027 vs. 2024 | | Adverse scenario. Basis points | ![Imagen2.jpg]() According to the results obtained from this stress test, under the adverse scenario, Santander would destroy just 173 bps of fully- loaded capital. This compares to a peer average of 231 bps and the average of European banking system of more than 300 bps. This implies that, in absolute terms, the Group at the end of the stressed horizon in the adverse scenario, would have a fully- loaded CET1 ratio that is 50 bps better than the average of its European peers. Even in the adverse scenario, Santander was forecasted to generate a cumulative profit of EUR 10,769 million, well above its peers (average projected profit of EUR 805 million) and the system (averaging a projected loss of EUR 278 million). | | | --- | | | | Profit after tax (2025-2027) | | Adverse scenario. EUR million | ![PAT stress test.jpg]() | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | Peer average | | | System | | | | | | | | | | | | | Annual report 2025460 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Total Loss-Absorbing Capacity (TLAC) and Minimum Requirement for own funds and Eligible Liabilities (MREL) In November 2015, the FSB published the TLAC term sheet based on the previously published principles for crisis management frameworks. It aims to ensure global systemically important banks (G-SIBs) will have the capacity to absorb losses and recapitalize as required to maintain critical functions during and immediately after resolution proceedings without compromising public funds or financial stability. From 1 January 2022, the TLAC term sheet requires each G-SIB to have an individually set minimum TLAC level that is the greater of 18% of RWAs and 6.75% of the Basel III Tier 1 leverage ratio exposure. Some jurisdictions have already transposed the TLAC term sheet into law (as is the case in Europe, the US and Mexico as of 1 January 2023); however, other jurisdictions where we operate (e.g. Brazil) have yet to do so. In Europe, the final texts of CRR 2 and BRRD 2, which amend the resolution framework, were published in June 2019. One of the main objectives of this revision was to implement the TLAC requirement in Europe. The CRR 2, which came into force in June 2019, dictates the 18% of RWAs minimum requirement for G-SIBs as set in the TLAC term sheet. It must be made up of subordinated liabilities (with the exception of a percentage of senior debt of maximum of 3.5% or RWAs, with the resolution authority's authorization). As of 31 December 2025, the TLAC of the resolution group headed by Banco Santander, S.A. stood at 27.2% of RWAs and 8.1% of the leverage ratio exposure. The BRRD 2 was transposed into law in Spain in 2021. G-SIBs also have a Pillar 2 requirement in addition to the minimum CRR TLAC requirement, owing to the MREL methodology in the BRRD 2. In May 2025, Banco de España formally communicated the (binding) MREL requirement for the Banco Santander, S.A. Resolution Group (sub-consolidated): • Until 7 May 2025, the Group needed to meet the minimum requirement set at the highest of 32.39% of the Resolution Group’s RWAs and 12.23% of the Resolution Group’s leverage ratio exposure. Of the total MREL requirement, a minimum subordination level was fixed as the highest of 11.30% of RWAs and 6.22% of the leverage ratio exposure. However, the Resolution Group headed by Banco Santander, S.A.'s minimum subordination is determined by TLAC, not by MREL, as the TLAC subordination requirement is greater. This MREL requirement was based on December 2022 data. • From 7 May 2025 until a new official communication by Banco de España, the Group must meet the minimum requirement set at the highest of 31.92% of the Resolution Group’s RWAs and 12.75% of the Resolution Group’s leverage ratio exposure. Of the total MREL requirement, a minimum subordination level was fixed as the highest of 10.95% of RWAs and 6.27% of the leverage ratio exposure. This MREL requirement is based on December 2023 data. • As at 31 December 2025, Banco Santander, S.A.'s MREL was 39.7% of RWAs and 15.2% of the leverage ratio exposure and subordinated MREL was 34.0% of RWAs and 13.1% of the leverage ratio exposure. As a result, Banco Santander, S.A. met its MREL requirements. | | | | | --- | --- | --- | | | | | | TLAC | | MREL | | %. 31 December 2025 | | %. 31 December 2025 | | TLAC eng.jpg | | MREL eng.jpg | | A. CBR: Combined Buffer Requirement, comprising a capital conservation buffer (2.5%), a G-SII buffer (1.25%), a countercyclical capital buffer (0.59%) and a systemic risk buffer (0.08%). | | | Annual report 2025461 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 4.6 Special situations and resolution Corporate special situations and resolution framework: crisis management, recovery and resolution planning This section summarizes the main developments in the year relating to preparing and strengthening mechanisms for a potential crisis, recovery plans and preparing and executing initiatives to improve resolvability plans. #### Corporate framework for special situations and resolution The framework enables our units and global businesses to aggregate and clearly interpret the various mechanisms for monitoring, escalating and managing both financial and non- financial events as well as governance. It helps link the action plans (e.g. contingency plans, business continuity plans, recovery plans) to be executed in each phase. We base crisis governance on a collective decision-making model that is organized into and operated under severity levels to facilitate flexibility and sequential decision-making. For instance, in the most severe stages of a hypothetical crisis, the Gold committee, composed of the Group’s top executives supported by the Silver forum and other specialists such as the Bronze teams, would be the leading decision-making body. The framework aims to encourage the sharing of best practices across the Group and continuous collaboration between subsidiaries and corporate teams (including coordination in the recovery planning and resolution preparation phases) to continue to effectively develop our management and control model. Two of Santander's key processes are the recovery plan and the bail-in playbook, which describes the resolution tool's execution. #### Crisis management During 2025, we managed several important events, including: i) operational incidents, such as the major power blackout across the Iberian peninsula and the outage of the TARGET2 payment system, which settles euro-denominated wholesale transactions; ii) geopolitical and/or macroeconomic events, including the armed conflict in the Middle East and tariff-related tensions; and iii) natural disasters, such as the floods in Bahía Blanca, Argentina. These events and the lessons derived from them underscored certain considerations, including: • Responsiveness and resilience. The power blackout in Spain and Portugal demonstrated the Group's ability to maintain operational continuity in highly complex situations. Preparation and adequate contingency mechanisms help to limit disruptions to banking and financial services and thus, contribute to overall system stability. • The importance of real-time information. In an increasingly dynamic financial environment, with factors such as instant payments and exposure to unpredictable events —including cyberattacks and technology failures— having real-time monitoring tools is essential to detect anomalies or spikes in activity that may signal the onset of critical situations. • The benefits of ex ante preparation. Crisis simulation and management exercises conducted over the past few years continue to demonstrate their effectiveness by fostering swift and coordinated responses, based on prior experiences. • Global coordination as a strength. Collaboration between the Group's subsidiaries and its five global businesses was a determining factor in the management of the events experienced in 2025. Mechanisms such as the ability to summon global crisis governance bodies, including the Bronze teams and the global Silver forum, close coordination between Crisis Management Directors (CMDs) and the relevant functions, as well as corporate guidelines, strengthened the effectiveness of the response. To further strengthen and improve our crisis prevention and management model, we carried out several initiatives in 2025: • We strengthened controls against internal threats, through specific programmes aimed at expanding preventive and response capabilities. • We updated protocols related to disinformation and emerging threats, to adapt them to an increasingly complex environment in media and technology. • We enhanced business continuity and operational resilience, through the review and expansion of the continuity plans in critical units, as well as the assessment of alternative solutions to ensure connectivity and operational continuity under adverse scenarios. In conclusion, despite the very different nature and complexity of the challenges faced during 2025, the Group's crisis management model once again demonstrated its strength. Nevertheless, in an increasingly dynamic global environment, the Group remains firmly committed to further strengthening its mechanisms, capabilities and management tools in order to anticipate and effectively address potential challenges in the future. #### Recovery plans Context. During 2025, Santander drew up its 16th corporate recovery plan. It sets out measures we have at our disposal to survive a very severe crisis without extraordinary public aid, in accordance with article 5.3 of the BRRD. Two of its primary aims are to test: i) the feasibility, effectiveness and credibility of the recovery measures; and ii) the suitability of the recovery indicators and their respective thresholds, above which decision-making would be escalated to address stress situations. It sets out different macroeconomic and/or financial crisis scenarios that could materialize in idiosyncratic, systemic and/or combined events that could lead the Group to trigger the plan. The recovery plan should not be considered an instrument separate from our structural mechanisms to measure, manage and supervise risk. It is aligned with the risk appetite framework (RAF), the risk appetite statement (RAS), the risk profile assessment (RPA), the business continuity management system (BCMS) and the internal assessments of capital and liquidity (ICAAP and ILAAP, respectively), among other tools. It is also integrated into the Group's strategic plans. Progress in 2025. As we do every year, in 2025 we improved the recovery plan further, having included the following during the year: • Dynamic thresholds and a more conservative calibration of certain indicators, enhanced scenario descriptions and a more detailed analysis of the entity's risk profile in each scenario. Annual report 2025462 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | • Further detail on the process and the feasibility assessment of partial and full disposals. • The execution of two additional recovery measure simulations: the reduction of lending activity and the disposal of corporate and investment banking portfolios. The key takeaways from our review of the 2025 corporate recovery plan were: • There are no material interdependencies between our different subsidiaries and each has sufficient capacity to emerge from a recovery situation on its own. This strengthens the Group's model based on units that are autonomous with respect to liquidity and capital. • Amid a serious financial or solvency crisis, no subsidiary is important enough to trigger the corporate recovery plan by causing the severest recovery indicator levels to be breached. • Available measures ensure we have ample recovery capacity in all scenarios and we have sufficiently robust governance to manage stresses that vary in nature and intensity. These factors prove our business model and geographic diversification strategy continue to represent a strength from a recovery standpoint. Regulation and governance. Santander’s recovery plan complies with EU regulations and follows the non-binding recommendations of the Financial Stability Board (FSB) and other international bodies. We submitted our latest plan to the Single Supervisory Mechanism in October 2025; the EBA has a six month window to make formal considerations. Santander's recovery plan comprises the corporate plan (Banco Santander, S.A.), local plans for the UK, Brazil, Mexico, the US, Germany, Argentina, Chile, Portugal, Norway and Peru and a recovery plan summary for Santander Bank Polska S.A. and Santander Consumer Bank S.A. -Poland-. All subsidiaries (except Santander Chile and Santander Peru) must draw up a local plan in compliance with local regulations and corporate requirements. Though the board of Banco Santander, S.A. approves the corporate plan, relevant content and figures are previously submitted to and discussed by the Silver forum, Gold committee, risk control committee and the risk supervision, regulation and compliance committee. Local plans are approved by local bodies in coordination with the Group (as they are included in the Group's corporate plan). #### Resolution plans The relevant authorities prepare the resolution plans1, and Santander cooperates with them by providing all requested information. During 2025, the supervisory and resolution authorities that form part of the Crisis Management Group (CMG), a forum focused on crisis management in systemically important international banks, reaffirmed their decision to apply a multiple point of entry (MPE) strategy in a hypothetical resolution. Under this strategy, which is structured around 11 different resolution groups, the parent company, Banco Santander, S.A., along with the rest of its subsidiaries within the Banking Union, constitutes the main resolution group (Banking Union Resolution Group - BURG). This strategy is consistent with our legal and business structure, as the 11 resolution groups can be resolved independently without involving other parts of the organization, given the low level of interconnection. In 2025, we prepared our annual work plan to continue to meet resolution planning requirements. Banco Santander, S.A.’s board of directors approved it in February 2026, prior to its definitive submission to the Single Resolution Board (SRB). The plan defined, among others, the following actions: 1. With the exception of the US, where individual entities draw up their own resolution plans. Annual report 2025463 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 1) Continue to conduct simulation and testing exercises In 2025, we performed different exercises: • In June, we carried out a dry-run simulation to ensure that the bank is able to list and provide additional information on the financial market infrastructures (FMIs) used by the units which compose the BURG, within a maximum timeframe of 24 hours. • In June, we reviewed the contingency plans of three FMIs, to verify that they contain all the information required by the resolution authority. • In July, we conducted a pilot study of the Minimum Bail-in Data Template (MBDT). • In November, we carried out a dry-run simulation on the execution of the resolution tool (i.e. bail-in), with the aim of demonstrating that the bank is familiar with the steps to be followed in the event of resolution, including the internal and external execution of the tool, communication, governance and related processes. Santander Consumer Bank AS (in Norway) was included for the first time in this exercise. • Also in November, we carried out a week-long simulation consisting of the daily generation of relevant information on intraday liquidity. This exercise's aim was to demonstrate the bank’s ability to generate this information before, during and after resolution. 2) Continue to work on the separability of important subsidiaries in the resolution group headed by Banco Santander, S.A. During 2025, we continued with the work on separability, focusing on improving our ability to implement alternative business disposal tools in the event of resolution, through the development of an advanced separability analysis report. In addition, we prepared business transferability manuals for several relevant entities within the resolution group, with the aim of understanding how to execute the sale of a business from an operational perspective in a resolution scenario. 3) Guarantee operational continuity in resolution situations In 2025, we continued to work on ensuring operational continuity in resolution, by focusing on enhancing the information systems used to capture data on services, suppliers, operational assets and personnel which are relevant in a resolution scenario. 4) Conduct an in-depth analysis on the calculation of the Minimum Requirement for Own Funds and Eligible Liabilities (MREL) In June, the SRB carried out an on-site exercise at the Santander, to verify the calculation of own funds and eligible liabilities. Over a five-day period, the SRB and other national resolution authorities met with all the teams involved, who set out the methodology applied in the process. Annual report 2025464 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 5. Financial information by segment #### 5.1 Description of segments during 2025 We base segment reporting on financial information presented to the chief operating decision maker, which excludes certain statutory results items that distort year-on-year comparisons and are not considered for management reporting. This financial information (underlying basis) is computed by adjusting reported results for the effects of certain gains and losses (e.g. capital gains, write-downs, impairment of goodwill, etc.). These gains and losses are items that management and investors ordinarily identify and consider separately to better understand the underlying trends in the business. For more details, see [note 52.c](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1237) to the consolidated financial statements. Santander has aligned the information in this chapter with the underlying information used internally for management reporting and with that presented in the Group's other public documents. The executive committee of Santander's board of directors has been selected to be its chief operating decision maker. The Group's operating segments reflect its organizational and managerial structures. The executive committee reviews internal reporting based on these segments to assess performance and allocate resources. The segments are split by global business and by country in which profits are earned. We prepare the financial information by aggregating the figures for Group’s global businesses and countries, relating it to both the accounting data of the business units integrated in each segment and that provided by management information systems. The same general principles as those used in the Group are applied. #### Main changes to the composition of Santander's #### segments in 2025 The main changes we applied from 1 January 2025 to the management information for all periods included in the consolidated financial statements were: • To better align reporting with the changes to the management structure in Wealth Management & Insurance, investment platforms (Investment Platforms Unit) and certain stakes in companies, mainly in the real estate sector, that were previously recorded in Retail & Commercial Banking or Corporate & Investment Banking were incorporated into Wealth Management & Insurance. We therefore incorporated a new vertical, Portfolio Investments, focusing on the management of said investment platforms and stakes that complement Wealth's traditional business, enhancing the product and service offering for our clients. • Some profit sharing criteria between Retail & Commercial Banking and Cards were improved, aligning criteria across the Group. • Additionally, we completed the usual annual adjustment of the perimeter of the Global Customer Relationship Model between Retail & Commercial Banking and Corporate & Investment Banking and between Retail & Commercial Banking and Wealth Management & Insurance. • In secondary segments, as part of our transformation strategy and after a year with our five global businesses in full operation, the board of directors approved the dissolution of the regional structures, having fulfilled their mission to support the transition to the global operating model. As a result, we no longer report regional information and the secondary segments are structured into the 10 main units (nine countries and DCB Europe), the Corporate Centre and ‘Rest of the Group’, which includes everything that is not already included in the mentioned units. None of the changes described above impact the Group's reported global figures in the consolidated financial statements. #### Primary segments This primary level of segmentation, comprises six reportable segments: five global businesses plus the Corporate Centre. The global businesses are: Retail & Commercial Banking (Retail): area that integrates the retail banking business and commercial banking (individuals, SMEs and corporates), except private banking clients and business originated in the consumer finance and the cards businesses. Detailed financial information is provided on Spain (Retail Spain), the UK (Retail UK), Mexico (Retail Mexico) and Brazil (Retail Brazil), which represent most of the total Retail business. Digital Consumer Bank (Consumer): comprises all business originated in the consumer finance companies, plus Openbank, Open Digital Services (ODS) and SBNA Consumer. Detailed financial information is provided on Europe (DCB Europe) and the US (DCB US). Corporate & Investment Banking (CIB): this business, which includes Global Transaction Banking, Global Banking (Global Debt Financing and Corporate Finance) and Global Markets, offers products and services on a global scale to corporate and institutional customers, and collaborates with other global businesses to better serve our broad customer base. Annual report 2025465 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Wealth Management & Insurance (Wealth): includes the corporate unit of Private Banking and International Private Banking in Miami and Switzerland (Santander Private Banking), the asset management business (Santander Asset Management), the insurance business (Santander Insurance) and the unit that manages the investment platforms and stakes that complement Wealth's traditional business (the new vertical, Portfolio Investments). Payments: comprises the Group's digital payments solutions, providing global technological solutions for our banks and new customers in the open market. It is structured in two businesses: PagoNxt (Getnet, Ebury and PagoNxt Payments) and Cards (cards platform and business in the countries where we operate). #### Secondary segments Following the dissolution of the regional management structures at the beginning of 2025, this secondary level includes our main geographical units. Detailed financial information is provided on Spain, the UK, Portugal, Poland, DCB Europe, which includes Santander Consumer Finance (the entire consumer finance business in Europe), Openbank in Europe and ODS, the US, which includes the holding company (SHUSA) and the businesses of Santander Bank (SBNA), Santander Consumer USA (SC USA), the specialized business unit Banco Santander International, the New York branch and Santander US Capital Markets (SanCap), Mexico, Brazil, Chile and Argentina. Information is also provided on the Corporate Centre and ‘Rest of the Group’, which brings together everything that is not included in the aforementioned geographical units or the Corporate Centre. The Corporate Centre includes the centralized activities relating to equity stakes in financial companies, financial management of the structural exchange rate position, assumed within the sphere of the Group’s asset and liability committee, as well as management of liquidity and of shareholders’ equity via issuances. As the Group’s holding entity, this area manages all capital and reserves and allocations of capital and liquidity with the other businesses. It also incorporates goodwill impairments but not the costs related to the Group’s central services (charged to the areas), except for corporate and institutional expenses related to the Group’s functioning. | | | | | --- | --- | --- | | | | | | | | | | | The information included on each of the segments in this report and the accounting principles under which their results are presented here may differ from the accounting principles applied and the financial information separately prepared and disclosed by our subsidiaries (some of which are publicly listed) which in name or geographical description may seem to correspond to the segments covered in this report. Accordingly, the results of operations and trends shown for our segments in this document may differ materially from those of such subsidiaries. As described in section [4. 'Group financial performance'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_664), the results of our segments presented below are only provided on the basis of underlying results in accordance with IFRS 8. Therefore, the information included in this section, at both the Group and the primary and secondary segment levels, includes Poland's results reported line by line as they were in previous disclosures. This is because the management of Santander Poland remained unchanged until the Poland disposal was completed in January 2026, and the following information relates to periods before the Poland disposal was completed. This reporting approach is consistent with the information used internally in management reporting, as well as with other public Group disclosures. For the same reason, all management metrics included in this section have been calculated including Poland, i.e. maintaining the same perimeter that existed at the time of the announcement of the Poland disposal. For further information, see the [6. 'Alternative performance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) [measures'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) section. The results of our segments presented below are provided on the basis of underlying results only and include the impact of foreign exchange rate fluctuations. However, for a better understanding of the changes in the performance of our business areas, we also provide and discuss the year-on-year changes to our results excluding such exchange rate impacts (i.e. in constant euros), except for Argentina, and any grouping which includes it, where the variations in constant euros have been calculated considering the Argentine peso exchange rate on the last working day for each of the periods presented. For further information, see the [6.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) ['Alternative performance measures'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) section. The statements included in this section regarding Santander's competitiveness and that of its subsidiaries have been produced by the Group based on public information (corporate websites of competing entities and information published by national banking institutions). Certain figures contained in this chapter have been subject to rounding to enhance their presentation. Accordingly, in certain instances, the sum of the numbers in a column or a row in tables contained in this report may not conform exactly to the total figure given for that column or row. | | | | | | Annual report 2025466 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 5.2 Summary of the Group's main business areas' income statements | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 2025 | | | | | | | | Main items of the underlying income statement | | | | | | | | EUR million | | | | | | | | Primary segments | Net interest income | Net fee income | Total income | Net operating income | Profit before tax | Underlying profit attributable to the parent | | Retail & Commercial Banking | 26,409 | 4,784 | 31,216 | 18,902 | 11,167 | 7,666 | | Digital Consumer Bank | 11,036 | 1,479 | 13,015 | 7,728 | 2,566 | 1,741 | | Corporate & Investment Banking | 4,047 | 2,713 | 8,488 | 4,622 | 4,210 | 2,834 | | Wealth Management & Insurance | 1,445 | 1,703 | 4,239 | 2,742 | 2,713 | 2,063 | | Payments | 2,907 | 3,008 | 6,013 | 3,654 | 1,486 | 883 | | PagoNxt | 167 | 1,059 | 1,373 | 235 | 134 | 96 | | Cards | 2,740 | 1,949 | 4,640 | 3,419 | 1,353 | 787 | | Corporate Centre | (490) | (27) | (581) | (983) | (1,275) | (1,085) | | TOTAL GROUP | 45,354 | 13,661 | 62,390 | 36,665 | 20,867 | 14,101 | | | | | | | | | | Secondary segments | | | | | | | | Spain | 7,305 | 3,022 | 11,990 | 7,706 | 6,083 | 4,272 | | UK | 5,008 | 369 | 5,280 | 2,509 | 1,794 | 1,307 | | Portugal | 1,346 | 506 | 1,959 | 1,411 | 1,417 | 1,010 | | Poland | 2,953 | 733 | 3,724 | 2,687 | 1,930 | 949 | | DCB Europe | 4,685 | 804 | 5,925 | 3,314 | 1,398 | 772 | | US | 5,888 | 1,328 | 7,929 | 4,116 | 1,748 | 1,541 | | Mexico | 4,554 | 1,454 | 6,305 | 3,685 | 2,336 | 1,705 | | Brazil | 9,380 | 3,193 | 12,602 | 8,493 | 3,224 | 2,168 | | Chile | 1,917 | 582 | 2,714 | 1,802 | 1,232 | 729 | | Argentina | 1,727 | 788 | 2,235 | 1,271 | 650 | 433 | | Corporate Centre | (490) | (27) | (581) | (983) | (1,275) | (1,085) | | Rest of the Group | 1,080 | 908 | 2,309 | 654 | 329 | 300 | | TOTAL GROUP | 45,354 | 13,661 | 62,390 | 36,665 | 20,867 | 14,101 | | | | --- | | | | Underlying profit attributable to the parent 2025 distribution | | Distribution A by primary segment | ![74]() A.  As a % of operating areas. Excluding the Corporate Centre. | | | --- | | | | Underlying profit attributable to the parent. 2025 | | EUR million. % change YoY | | | | | --- | --- | | | | | | | | | Retail | | | | | | Consumer | | | | | | CIB | | | | | | Wealth | | | | | | Payments | | | | ![32435593019600]() | | | | --- | --- | | | | | Var | Var B | | +6% | +9% | | +5% | +8% | | +3% | +7% | | +23% | +27% | | +119% | +155% | B. Changes in constant euros. Annual report 2025467 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 2024 | | | | | | | | Main items of the underlying income statement | | | | | | | | EUR million | | | | | | | | Primary segments | Net interest income | Net fee income | Total income | Net operating income | Profit before tax | Underlying profit attributable to the parent | | Retail & Commercial Banking | 27,937 | 4,707 | 32,374 | 19,578 | 10,857 | 7,247 | | Digital Consumer Bank | 10,777 | 1,508 | 12,912 | 7,729 | 2,228 | 1,659 | | Corporate & Investment Banking | 3,988 | 2,548 | 8,338 | 4,544 | 4,019 | 2,747 | | Wealth Management & Insurance | 1,706 | 1,497 | 3,803 | 2,351 | 2,284 | 1,671 | | Payments | 2,567 | 2,759 | 5,459 | 3,030 | 955 | 404 | | PagoNxt | 132 | 958 | 1,240 | 80 | (233) | (299) | | Cards | 2,436 | 1,801 | 4,220 | 2,950 | 1,188 | 703 | | Corporate Centre | (308) | (11) | (676) | (1,055) | (1,317) | (1,154) | | TOTAL GROUP | 46,668 | 13,010 | 62,211 | 36,177 | 19,027 | 12,574 | | | | | | | | | | Secondary segments | | | | | | | | Spain | 7,256 | 2,867 | 11,974 | 7,703 | 5,440 | 3,762 | | UK | 4,950 | 283 | 5,216 | 2,299 | 1,794 | 1,306 | | Portugal | 1,548 | 467 | 2,100 | 1,553 | 1,481 | 1,001 | | Poland | 2,844 | 674 | 3,555 | 2,591 | 1,650 | 800 | | DCB Europe | 4,361 | 902 | 5,679 | 3,075 | 1,131 | 642 | | US | 5,693 | 1,152 | 7,580 | 3,750 | 1,053 | 1,109 | | Mexico | 4,631 | 1,385 | 6,278 | 3,613 | 2,274 | 1,671 | | Brazil | 10,121 | 3,414 | 13,536 | 9,184 | 3,830 | 2,422 | | Chile | 1,822 | 551 | 2,592 | 1,659 | 1,111 | 629 | | Argentina | 2,919 | 602 | 2,487 | 1,465 | 827 | 665 | | Corporate Centre | (308) | (11) | (676) | (1,055) | (1,317) | (1,154) | | Rest of the Group | 832 | 723 | 1,888 | 341 | (248) | (280) | | TOTAL GROUP | 46,668 | 13,010 | 62,211 | 36,177 | 19,027 | 12,574 | Annual report 2025468 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 5.3 Primary segments | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | | Retail & Commercial Banking | Underlying attributable profit | EUR 7,666 mn | | | | → In 2025, we continued to drive our ONE Transformation programme to support our vision of becoming a digital bank with branches, through the implementation of a common operating model and the rollout of our global technological platform. | | | | | | → Loans increased 1% in constant euros year-on-year, driven by mortgages. Deposits and mutual funds rose 4% and 16%, respectively, in constant euros, with positive dynamics across most of our footprint, as a result of our customer centric model. | | | | | | → Underlying attributable profit was EUR 7,666 million , up 6% year-on-year and +9% in constant euros, driven by net fee income due to good commercial dynamics in value added products, stable costs supported by the transformation of our common operating model and prudent risk management. | | | #### Strategy In 2025, we made decisive progress in transforming our business, to support our vision of becoming a digital bank with branches, combining leading technology with proximity and expert advice. We focused on three strategic priorities: • Transformation of our operating model based on three pillars: • Customer experience. During 2025, we continued to drive product digitalization and customer journey optimization, resulting in double-digit year-on-year growth in digital sales. In addition, we launched the global app which provided a more uniform and high-quality experience through digital channels. At the same time, we implemented the new branch and Work Café model, having opened new branches in our main countries, consolidating their role as community and advisory hubs and strengthening our omnichannel offering. • Operational leverage. We continue to increase product simplification (24% fewer products year-on-year, -61% since the beginning of transformation) and automate process at scale. These initiatives, together with our push towards more agile structures, enabled us to reduce the number of non- commercial FTEs per million customers by 17% year-on-year, freeing up capacity for higher value-added commercial activities. Additionally, by incorporating AI in key processes, we are reducing operational tasks, maintenance costs and execution times, improving customer experience and reducing the cost per active customer (-4% year-on-year). • Global technology platform. In 2025, we accelerated the convergence towards a common platform. Gravity, our back- end technology, is fully implemented in Spain, Mexico and Chile, enabling us to reduce transaction costs and improve response times. The new global app is currently available in Brazil and Spain and is being rolled out in Mexico and Chile. Our assisted channel solution is already being used in over half of our branches and in all of our contact centres in Mexico, enhancing productivity and sales. Lastly, the new customer interaction platform in Brazil, the UK, Argentina and Chile, supports effective hyper-personalization across all channels and segments, increasing sales conversion and strengthening relationships with our customers. • Transformation of the business model. We remain focused on value creation and positioning the customer at the centre of our management: • We provide better customer experience, a simpler offering tailored to our key segments and advanced hyper- personalization tools which enable us to build stronger relationships with our customers. • By taking advantage of the Group's capabilities, we can offer our customers a complete value proposition and improve customer service. A good example was the incorporation of products and services from Ebury and Tresmares Capital into our corporate offering. Our continued business growth with multinational companies is another example of how our scale enables us to offer integrated and differentiated solutions. • Structural efficiency and profitability improvement. The transformation of our operating and business model continue to drive structural efficiency improvements and commercial capacity, that, together with prudent risk management and strict capital distribution, support our profitable growth. | | | --- | | | | Retail. Customers | | Thousands and year-on-year change | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | Retail | Spain.jpg | UK.jpg | Mexico.jpg | Brazil.jpg | | Total customers | 153,134 | 15,174 | 22,676 | 21,826 | 73,346 | | +4% | 0% | +1% | +3% | +6% | | | | | | | | | Active customers | 81,045 | 9,069 | 13,512 | 11,226 | 33,365 | | +2% | +4% | -1% | +4% | +2% | Annual report 2025469 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Business performance Gross loans and advances to customers, excluding reverse repos and in constant euros rose 1% year-on-year, mainly due to the increase in mortgages, which amply offset the decrease in SMEs. The mortgage portfolio increased across most countries. Personal loans, however, were flat, as growth in Spain, Chile and Poland, offset the decline in Brazil. Corporate loans rose, mainly due to generalized growth across Europe. SME loans were affected by lower volumes in Spain, the UK and Portugal. Customer deposits, excluding repos and in constant euros, rose 4%, driven by broad-based growth across countries in Europe and in South America, particularly in Spain, the UK and Brazil, especially in time deposits. Mutual funds rose 16% in constant euros, with positive performances across most countries. As a result, customer funds increased 6 % in constant euros. | | | --- | | | | Retail. 2025 business performance | | EUR billion and YoY % change in constant euros | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 601 | +1% | | 778 | +6% | | | | | --- | | | | | | | | | | | | Other | ![32435593077731]() | | | --- | | | | | | | | | | | | Other | ![32435593077736]() | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Gross loans and advances to customer excl. reverse repos | | | | | | | Customer deposits excl. repos + mutual funds | | | | | | #### Results Underlying attributable profit in 2025 was EUR 7,666 million (50% of the Group's total operating areas), up 6% compared to 2024. In constant euros, it rose 9% year-on-year, as follows: • Total income was flat, as the decrease in net interest income was offset by growth in net fee income and other income. Net interest income decreased 2% year-on-year heavily impacted by Argentina, where interest rates declined significantly over the year. However, if we exclude Argentina, net interest income was flat, in a less favourable interest rate environment, with positive performances across the board. Of note, Mexico due to volumes and a lower cost of deposits, Chile supported by a lower cost of deposits and the UK driven by higher mortgage profitability and a lower cost of deposits. Greater commercial activity and a larger loyal customer base contributed to net fee income growth (+6%). The most significant increases were in Mexico, the UK and Argentina and by product, in insurance, mutual funds and FX. | | | --- | | | | Retail. Total income | | EUR million and YoY % change in constant euros | | | | --- | | | | | | | | | | | | | | Other | ![5467]() | | | --- | | | | Var | | -1% | | +3% | | +8% | | -6% | | 0% | | | | | | | --- | --- | --- | --- | | | | | | | Retail | 31,216 | | 0% | • Administrative expenses and amortizations were flat. In real terms, costs declined 4% reflecting our transformation efforts through organizational simplification, process automation and the deployment of the global platform. As a result, net operating income was also flat and efficiency improved to 39.4%. • Net loan-loss provisions showed a solid performance, decreasing 2% year-on-year, as declines in Poland, Spain and Brazil more than offset the increases in Argentina and in the UK due to the normalization of provisioning levels. • Other gains (losses) and provisions line recorded a 17% lower loss than in 2024, benefitting from the fact that in 2024 the temporary levy on revenue earned in Spain was recorded under this line, whereas the expected tax on income obtained in Spain was recorded in the tax line in 2025. The comparison was also supported by lower charges related to the Swiss franc mortgage portfolio in Poland. Overall, RoTE (post-AT1) in 2025 was 17.7%. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Retail. Underlying income statement | | | | | | EUR million and % change | | | | | | | | | / | 2024 | | | 2025 | 2024 | % | % excl. FX | | | | | | | | Revenue | 31,216 | 32,374 | (4) | 0 | | Expenses | (12,314) | (12,796) | (4) | 0 | | Net operating income | 18,902 | 19,578 | (3) | 0 | | LLPs | (5,416) | (5,846) | (7) | (2) | | PBT | 11,167 | 10,857 | +3 | +5 | | Underlying attrib. profit | 7,666 | 7,247 | +6 | +9 | Detailed financial information in section [5.4 'Appendix'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_763). Annual report 2025470 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | banderaESP.jpg | Retail Spain | Profit before tax | | EUR 3,250 mn | #### Business performance In 2025, commercial activity remained solid, supported by strong new customer acquisition during the year, improved customer engagement and higher digital adoption, with 78% of our products and services digitally available. We also increased our market share in payrolls, pensions and Bizum registrations. Gross loans and advances to customers, excluding reverse repos and in constant euros, were flat year-on-year as the increase in personal loans, consistent with our customer engagement strategy, and higher corporate loans offset a decrease in SMEs, due to ICO maturities and our focus on active risk management and balance sheet optimization. Customer deposits excluding repos, increased 4% year-on-year, driven by our new value proposition for Select customers, supporting customer acquisition and improving our funding mix. Mutual funds increased 15% year-on-year. As a result, customer funds increased 6% year-on-year. #### Results Profit before tax in 2025 reached EUR 3,250 million, 16% higher than in 2024. By line item: • Total income was down 1% mainly due to a decline in net interest income in a lower interest rate environment. Net fee income was flat, as an increase in mutual fund and insurance net fee income due to higher volumes were offset securitization fees. • Administrative expenses and amortizations decreased 1%, driven by the progress achieved in product simplification and process automation, as well as by the savings from the rollout of global platforms such as Gravity. As a result, the efficiency ratio stood at 32.4%. • Net loan-loss provisions decreased 9%, which resulted in an improvement in the cost of risk and NPL ratio to 0.64% and 3.01%, respectively. • The other gains (losses) and provisions line recorded a 45% lower loss, as in 2024 it was impacted by the temporary levy, whereas the expected tax on income obtained in Spain was recorded in the tax line in 2025. | | | | | | --- | --- | --- | --- | | | | | | | Retail Spain. Underlying income statement | | | | | EUR million and % change | | | | | | | | / 2024 | | | 2025 | 2024 | % | | | | | | | Revenue | 7,007 | 7,071 | (1) | | Expenses | (2,268) | (2,288) | (1) | | Net operating income | 4,739 | 4,783 | (1) | | LLPs | (996) | (1,092) | (9) | | PBT | 3,250 | 2,797 | +16 | Detailed financial information in section [5.4 'Appendix'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_763). | | | | | --- | --- | --- | | | | | | UK.jpg | Retail UK | Profit before tax | | EUR 1,603 mn | #### Business performance During the year, we advanced in our transformation programme through the digitalization and automation of processes, which helped to continue to deliver sustained improvements in operational efficiency and productivity. Gross loans and advances to customers, excluding reverse repos and in constant euros increased 2% year-on-year, driven by an increase in mortgages and corporates. The trend in mortgages was positive throughout the year, with a progressive recovery in new business volumes. Customer deposits excluding repos and in constant euros increased 4% mainly driven by time deposits. Mutual funds increased 5% year-on-year in constant euros. As a result, customer funds increased 4% in constant euros. #### Results Profit before tax was EUR 1,603 million, flat year-on-year. In constant euros, it increased 1%, by line: • Total income increased 3%, driven by a positive performance in net interest income, supported both by higher loan yields and a lower cost of deposits, and higher net fee income, driven by transactional and FX fees. • Administrative expenses and amortizations decreased 4% reflecting our efforts in process simplification and automation. Net operating income increased 11% and the efficiency ratio improved by 3.7 pp to 52.6%. • Net loan-loss provisions continued to normalize, though they remained at low levels, with a cost of risk of only 5 bps. • The other gains (losses) and provisions line recorded losses of EUR 494 million, a 24% greater loss year-on-year, due to charges related to transformation. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Retail United Kingdom. Underlying income statement | | | | | | EUR million and % change | | | | | | | | | / | 2024 | | | 2025 | 2024 | % | % excl. FX | | | | | | | | Revenue | 4,681 | 4,618 | +1 | +3 | | Expenses | (2,463) | (2,601) | (5) | (4) | | Net operating income | 2,218 | 2,017 | +10 | +11 | | LLPs | (122) | (14) | +789 | +800 | | PBT | 1,603 | 1,600 | 0 | +1 | Detailed financial information in section [5.4 'Appendix'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_763). Annual report 2025471 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | Mexico.jpg | Retail Mexico | Profit before tax | | EUR 1,354 mn | #### Business performance During the year, we made progress in transforming our operating model, driving digitalization (7% increase year-on-year in digital customers), and enhancing customer experience through optimized digital onboarding processes, which resulted in greater efficiency. Gross loans and advances to customers, excluding reverse repos and in constant euros, grew 3% year-on-year, mainly due to growth in mortgages, supporting by our enhanced commercial offering. Customer deposits, excluding repos and in constant euros, increased 8% year-on-year, with growth in both demand and time deposits. This reflects increased transactional activity due to our focus on customer primacy. During the year, we also increased inflows into investment funds, which rose 16% in constant euros. As a result, customer funds grew 10% in constant euros. #### Results Profit before tax reached EUR 1,354 million in 2025 up 3% year- on-year. In constant euros, it increased 13%, as follows: • Total income rose 8%, mainly driven by a good net interest income performance, supported by higher activity and a lower cost of deposits, and by an increase in net fee income, particularly from higher volumes in mutual funds. • Administrative expenses and amortizations rose 4% in line with inflation. As a result, net operating income increased 12% and the efficiency ratio improved by 1.7 pp to 44.9%. • Net loan-loss provisions increased 5%, partially due to loan growth, with a cost of risk of 1.94% and an NPL ratio of 3.40%. • The other gains (losses) and provisions line recorded losses of EUR 70 million, a 95% greater loss year-on-year. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Retail Mexico. Underlying income statement | | | | | | EUR million and % change | | | | | | | | | / | 2024 | | | 2025 | 2024 | % | % excl. FX | | | | | | | | Revenue | 3,719 | 3,769 | (1) | +8 | | Expenses | (1,669) | (1,757) | (5) | +4 | | Net operating income | 2,049 | 2,011 | +2 | +12 | | LLPs | (626) | (654) | (4) | +5 | | PBT | 1,354 | 1,318 | +3 | +13 | Detailed financial information in section [5.4 'Appendix'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_763). | | | | | --- | --- | --- | | | | | | Brazil.jpg | Retail Brazil | Profit before tax | | EUR 813 mn | #### Business performance In 2025, our commercial strategy was focused on driving growth in the affluent and corporate segments, offering a personalized and global experience. In the mass segment, we continue to advance towards a more integrated multichannel experience and a simpler product offering to increase customer engagement and satisfaction. Gross loans and advances to customers, excluding reverse repos and in constant euros, declined 3%, as growth in mortgages and SMEs did not fully offset declines in personal loans, in line with our strategy to focus on more profitable growth and capital optimization. Customer deposits increased 9% excluding repos and in constant euros, driven by time deposits, which rose double-digits, particularly individuals. Mutual funds increased 18% in constant euros. As a result, customer funds grew 11% in constant euros. #### Results Profit before tax was EUR 813 million in 2025, a 40% decrease year-on-year. In constant euros, it declined 35%, as follows: • Total income was 6% lower, impacted by the negative sensitivity of the balance sheet to higher interest rates, lower net fee income and gains on financial transactions, in an environment with lower activity. • Administrative expenses and amortizations increased 1%, below inflation, reflecting our transformation efforts in simplification, automation and digitalization. The efficiency ratio stood at 41.1%. • Net loan-loss provisions decreased 3%, supported by our prudent risk management and a charge in the portfolio mix to strengthen the balance sheet. This more than offset higher provisions in the corporate and agribusiness segments, both of which were heavily impacted by the macroeconomic and regulatory environment. • The other gains (losses) and provisions line recorded losses of EUR 742 million, an 8% greater loss year-on-year. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Retail Brazil. Underlying income statement | | | | | | EUR million and % change | | | | | | | | | / | 2024 | | | 2025 | 2024 | % | % excl. FX | | | | | | | | Revenue | 7,146 | 8,220 | (13) | (6) | | Expenses | (2,938) | (3,152) | (7) | +1 | | Net operating income | 4,209 | 5,068 | (17) | (10) | | LLPs | (2,653) | (2,973) | (11) | (3) | | PBT | 813 | 1,352 | (40) | (35) | Detailed financial information in section [5.4 'Appendix'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_763). Annual report 2025472 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | | Consumer | Underlying attributable profit | EUR 1,741 mn | | | | → We continue to advance in our priority to become the preferred choice of our partners and end customers and maximize profitability and value creation for our shareholders, while being the most cost competitive player in the industry. | | | | | | → Loans increased 2% year-on-year in constant euros, +4% in auto, especially in Europe and Latin America. Deposits grew 5% in constant euros, driven by solid performances in both Europe and the Americas, supported by Openbank, in line with our strategy to lower funding costs and reduce net interest income volatility across the cycle. | | | | | | → Underlying attributable profit reached EUR 1,741 million in 2025, up 5% year-on-year, +8% in constant euros, mainly underpinned by higher revenue, driven by improvements in net interest income across most of our footprint, and by lower provisions for potential complaints related to motor finance dealer commissions in the UK. | | | #### Strategy Digital Consumer Bank (Consumer) is a leading consumer finance company globally, with operations spanning auto financing, consumer lending and digital banking services (Openbank). It operates in 26 countries in Europe and the Americas and serves the financing needs of 27 million customers. Our vision is to become the preferred choice of our partners and end customers, and offer greater profitability and value creation to our shareholders, while being the most cost competitive player. To respond to the increasingly competitive mobility and consumer finance ecosystem while delivering on our vision, during 2025 we worked on transforming our operating model into a full-service digital consumer banking model with customers at the heart of our management, by focusing on the following strategic priorities: • Converge towards global platforms. We are developing our auto leasing platform and our check-out lending platform by leveraging new technologies and cross-regional agreements, while also building our global digital platform in our core markets (currently live in the US, Mexico, Germany and Spain). • Grow and consolidate partnerships and acquisitions. To retain and consolidate our leadership in mobility finance, we continued to offer global and best-in-class solutions integrated into our partners' ecosystems. We also worked on expanding our partnership base by capitalizing on existing agreements across Openbank and our consumer finance and auto businesses. • Promote the network effect. We continued to work on aligning the business with the Group's operating model and becoming more agile by embracing AI-driven tools to simplify processes and boost productivity, in order to reduce time-to-market, increase scalability and improve customer experience. During the year, we progressed in these priorities through the following initiatives: • In mobility finance, we continued to enhance our digital and operational capabilities, our sales and post-sales journeys and our leasing platform, available in Spain, Italy and Germany. We also continued to pursue global commercial opportunities, reinforcing our existing partnerships and engaging with new entrants across Europe. In the US, we maintained pricing discipline and prudent capital management to drive profitable growth across the credit spectrum. In Latin America, we remained leaders in new vehicle financing across our footprint as we focused on developing strategic alliances and new products to further strengthen our franchise. • In consumer lending, Zinia (to be rebranded as Openbank Pay in 2026), our check-out lending platform, leveraged strong partnerships. We launched a co-branded card with Amazon in Austria and instalment payments for Amazon customers in Spain and became Vodafone's finance provider in Germany, adding to our existing collaborations with Amazon and Apple in Germany. We also furthered the integration of CrediScotia in Peru, following its acquisition in Q1 2025. • As part of our profitable growth strategy, we continued to: i) boost customer deposits, with close to EUR 7 billion captured in constant euros in 2025, supported by targeted pricing actions and the Openbank launches; and ii) manage our balance sheet to optimize capital, focusing on risk-adjusted returns and sustainable growth. Following the rollout in the US last year, we launched Openbank in Mexico and opened a branch in Germany in 2025. We saw solid results, both in the US, backed by our partnership with Verizon, and in Mexico. In total, Openbank captured around EUR 7.5 billion in deposits and more than 900,000 new customers. In Europe, we expanded our product offering with a broker platform supported by AI, now live in Germany and Spain. In Q4 2025, we announced the merger of Santander Consumer Finance and Openbank in Europe into a single legal entity under the Openbank brand. This is a significant step towards simplifying our business structure and enhancing our value proposition for partners and customers. | | | | --- | --- | | | | | Consumer. Total customers | | | Millions | | | | | --- | | | | 7% | | | | --- | | | | | ![51127290754184]() | | | --- | | | | | Annual report 2025473 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Business performance Gross loans and advances to customers, excluding reverse repos and in constant euros, rose 2% year-on-year. This was driven by auto (+4%), which saw continuous growth in Europe, in a market that picked up from a weak start at the beginning of 2025, and double-digit increases across most of Latin America. The new lending performance (-8% year-on-year in constant euros) continued to reflect our focus on prioritizing profitability over volumes as we remained prudent in terms of originations in an environment marked by volatility and geopolitical uncertainty. Our EUR 13.3 billion leasing portfolio decreased 15% year-on-year in constant euros, as growth in Europe was more than offset by a decline in the US, due to the wind down of business through our relationship with Stellantis, lower demand for electric vehicles and our strategy to prioritize profitability over growth. In terms of liabilities, our access to wholesale funding markets remained strong and diversified. Customer deposits accounted for 61% of Consumer's total funding. Excluding repos and in constant euros, deposits were up 5% year-on-year (+11% in the US and +1% in Europe), as a result of our focus on deposit gathering, supported by Openbank. Including mutual funds (which rose 17%, albeit from low levels), customer funds grew 6% year-on-year in constant euros. | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Consumer. 2025 business performance | | | | | | | | | | | | EUR billion and YoY % change in constant euros | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | 212 | +2% | | | | | 139 | +6% | | | | | | --- | --- | | | | | DCB Europe | | | DCB US | | ![51127290754197]() | | | | --- | --- | | | | | DCB Europe | | | DCB US | | ![51127290754202]() | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | Gross loans and advances to customer excl. reverse repos | | | | | | | Customer deposits excl. repos + mutual funds | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Consumer. Leasing portfolio | | | | | | | | | | | | EUR billion and YoY % change in constant euros | | | | | | | | | | | | | | | | | --- | --- | --- | --- | | | | | | | Total leasing | 13 | -15% | | ![4189]() #### Results Underlying attributable profit in 2025 was EUR 1,741 million, up 5% year-on-year, representing 11% of the Group's total operating areas. In constant euros, profit increased 8%, as follows: • Total income rose 4%, mainly driven by net interest income, which grew 5%, with positive trends across almost all of our footprint, underpinned by our active margin management and higher volumes, as well as the CrediScotia integration in Peru. Net fee income was flat, as double-digit growth in the US and Latin America was offset by DCB Europe, which was impacted by new insurance regulation in Germany and weaker car registration trends, especially in H1 2025. Other income declined, mainly due to lower leasing results in the US, driven by reduced volumes and lower residual values. | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Consumer. Total income | | | | | | | | | | | | EUR million and YoY % change in constant euros | | | | | | | | | | | | | | | --- | --- | | | | | | | | DCB Europe | | | DCB US | | | Other | | ![5071]() | | | --- | | | | Var | | +4% | | 0% | | +12% | • Administrative expenses and amortizations rose 4% year-on- year (+2% in real terms), driven by our investments in platforms, Openbank and the CrediScotia integration, which were partially offset by savings from our efficiency and transformation efforts. • Net loan-loss provisions grew 1%, as an excellent performance in auto in the US nearly offset increases in other units, mainly in DCB Europe, and the impact of the CrediScotia integration. Credit quality remained controlled with the cost of risk improving 7 bps to 2.10%, while the NPL ratio stood at 5.32%. • Other gains (losses) and provisions registered a loss of EUR 704 million in 2025 compared to a EUR 939 million loss in 2024, mainly due to lower provisions for potential complaints related to motor finance dealer commissions in the UK and the temporary levy on revenue earned in Spain recorded in 2024. • The effective tax rate normalized as the benefit from fiscal incentives for electric vehicles decreased, following a decline in leasing volumes for these vehicles in the US during 2025. As a result, RoTE (post-AT1) stood at 8.6% in 2025. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Consumer. Underlying income statement | | | | | | EUR million and % change | | | | | | | | | / | 2024 | | | 2025 | 2024 | % | % excl. FX | | | | | | | | Revenue | 13,015 | 12,912 | +1 | +4 | | Expenses | (5,287) | (5,183) | +2 | +4 | | Net operating income | 7,728 | 7,729 | 0 | +3 | | LLPs | (4,457) | (4,562) | (2) | +1 | | PBT | 2,566 | 2,228 | +15 | +18 | | Underlying attrib. profit | 1,741 | 1,659 | +5 | +8 | Detailed financial information in section [5.4 'Appendix'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_763). Annual report 2025474 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | DCB | DCB Europe | Profit before tax | | EUR 1,398 mn | #### Business performance New car registrations saw weaker trends at the beginning of the year, with declines in normally strong months, but they picked up towards the end of the year. This performance and our focus on prioritizing profitability over growth were reflected in a 3% year- on-year drop in new business volumes in constant euros. However, gross loans and advances to customers, excluding reverse repos and in constant euros, grew 2% year-on-year, driven by auto balances. Customer deposits, excluding repos and in constant euros, rose 1% year-on-year, supported by demand deposits, in line with our strategy to increase the weight of retail funding. Mutual funds grew 16% in constant euros, albeit from low levels. #### Results In 2025, profit before tax reached EUR 1,398 million, 24% higher than in 2024. In constant euros, it rose 23%, as follows: • Total income grew 4%, mainly driven by strong net interest income (+8%), underpinned by our margin management and volumes growth, which more than offset the impact on net fee income from new insurance regulation in Germany and weaker car registration trends, particularly in the first half of the year. • Administrative expenses and amortizations were flat ( -2% in real terms), as savings from the transformation of our operating model offset our strategic investments in platforms and business growth. As a result, net operating income increased 8% and the efficiency ratio improved to 44.1%. • Net loan-loss provisions grew 13%, especially in Germany, impacted by the macro environment and worse credit quality in corporates (which is in run-off). However, cost of risk remained below 1%. • Other gains (losses) and provisions posted a loss of EUR 554 million, compared to a EUR 735 million loss in 2024, mainly due to a decline in provisions for potential complaints related to motor finance dealer commissions in the UK and the temporary levy on revenue earned in Spain recorded in 2024. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | DCB Europe. Underlying income statement | | | | | | EUR million and % change | | | | | | | | | / | 2024 | | | 2025 | 2024 | % | % excl. FX | | | | | | | | Revenue | 5,925 | 5,679 | +4 | +4 | | Expenses | (2,611) | (2,604) | 0 | 0 | | Net operating income | 3,314 | 3,075 | +8 | +8 | | LLPs | (1,363) | (1,209) | +13 | +13 | | PBT | 1,398 | 1,131 | +24 | +23 | Detailed financial information in section [5.4 'Appendix'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_763). | | | | | --- | --- | --- | | | | | | US.jpg | DCB US | Profit before tax | | EUR 699 mn | #### Business performance Since its launch in October 2024, Openbank has welcomed over 200,000 new customers and captured USD 7.8 billion in deposit balances. Our partnership with Verizon, launched in April 2025, also delivered strong results, with around 36,000 accounts opened and USD 800 million in deposits gathered. The stock of gross loans and advances to customers, excluding reverse repos and in constant euros, declined 5% year-on-year, mainly due to asset rotation initiatives (in line with our capital light strategy) and reduced new business activity, as we maintained our focus on profitability over growth. The leasing portfolio fell 28% in constant euros, impacted by the wind down of business through our relationship with Stellantis and a lower demand for electric vehicles. Customer deposits, excluding repos and in constant euros, rose 11% year-on-year, driven by demand deposits, reflecting strong momentum in Openbank. Mutual funds also grew in constant euros, contributing to an 11% increase in customer funds in constant euros. #### Results In 2025, profit before tax was 27% higher year-on-year, reaching EUR 699 million. In constant euros, it increased 32%, as follows: • Total income was flat, as stronger net interest income (higher auto loan margins) and net fee income (higher activity in auto servicing for third parties), offset a decline in leasing income, primarily due to lower volumes and residual values. • Administrative expenses and amortizations increased 3%, driven by our strategic investment in Openbank, which was partially offset by savings from our transformation initiatives. • Net loan-loss provisions improved 9%, underpinned by resilient consumer behaviour, used car prices stable at high levels, and capital relief measures. As a result, cost of risk improved 26 bps, reaching 4.17%. • The other gains (losses) and provisions line recorded a loss of EUR 92 million compared to a EUR 121 million loss in 2024. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | DCB US. Underlying income statement | | | | | | EUR million and % change | | | | | | | | | / | 2024 | | | 2025 | 2024 | % | % excl. FX | | | | | | | | Revenue | 5,072 | 5,297 | (4) | 0 | | Expenses | (2,141) | (2,159) | (1) | +3 | | Net operating income | 2,931 | 3,138 | (7) | (3) | | LLPs | (2,140) | (2,466) | (13) | (9) | | PBT | 699 | 551 | +27 | +32 | Detailed financial information in section [5.4 'Appendix'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_763). Annual report 2025475 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | | Corporate & Investment Banking | Underlying attributable profit | EUR 2,834 mn | | | | → Our enhanced centres of expertise and Global Markets and US Banking Build-Out (US BBO) initiatives have resulted in deeper partnerships with our clients, as evidenced by the deals and roles executed during the year. | | | | | | → Good activity levels year-on-year, benefitting from our diversification in a complex environment. Global Markets (GM) and Global Banking (GB) were the main contributors supported by our growth initiatives. | | | | | | → Underlying attributable profit reached EUR 2,834 million, a 3% increase year-on-year (+7% in constant euros), driven by a good revenue performance, due to strong net fee income across business lines. We maintained a leading position in efficiency and profitability reflected in the efficiency ratio at 45.5% and RoTE (post-AT1) at 19.1%. | | | #### Strategy Our Corporate & Investment Banking (CIB) business is a global franchise that is well diversified by business line, unit and client type, providing a balanced model that supported another year of sustainable and profitable growth. In 2025, we made solid progress in our strategic priorities, consolidating the results of the investments over the past two years and reinforcing the foundations of our long-term plan: • Fully leveraging our centres of expertise and expanded coverage to strengthen our positioning in our core markets, while gaining traction in the new areas where we have invested. Of note during the year were the new equity research partnerships that strengthen our ECM franchise and the increased activity and mandates in Leveraged Finance, among others. • Deepening our client relationships. In the year, we progressed in our advisory capabilities and value-added solutions, particularly in fee-driven and capital-light businesses in the US. The execution of our US growth plan resulted in stronger client penetration and more important roles in our Investment Banking activity. Meanwhile, collaboration between our businesses increased further, as we improved connectivity and created additional business opportunities between Global Banking, Global Markets and Global Transaction Banking (GTB). • Maximizing the impact of our US BBO initiative by leveraging our expanded coverage and product capabilities to generate new opportunities across markets and Group global businesses. During the year, CIB further strengthened collaboration with the other global businesses. For example, we provide FX solutions to Retail, a full suite of products to Commercial, product development and structuring to Wealth, and capital markets solutions and advisory to Consumer, among others. This continues to position CIB as a key engine of value creation and an essential pillar of the Group’s global strategy. • Continuing to advance in the execution of our automation and digitalization initiatives, exploring practical applications of AI to strengthen controls and support business productivity. Our data science and AI teams increased their collaboration with sales and product areas to support the development of new solutions, such as improved generation of client pitches or enhanced data analysis to increase bankers' and support functions' productivity. These efforts are helping to establish a more advanced and scalable operating model and enhance how we deliver services across the franchise. • Further evolving CIB's global operating model, strengthening our global platforms, enhancing support functions, promoting team specialization and capturing synergies across regions, supporting more effective cost management. We continued to improve our originate-to-share model, with a focus on capital efficiency, active management and profitability. The progress achieved throughout the year, driven by the expansion of our presence in the US, advances in our digital and AI agenda and improvement of global capabilities, strengthened our competitive position and places us in a strong situation to continue growing profitably in the long term. | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Recent awards | | | Ranking in 2025 League Tables | | | | top3.jpg | | Euromoney | Crisil | | Project Finance | | Debt Capital Markets | | | | World’s Best Transaction Banking Partnership (Invensa) Latin America’s Best FX Bank | Best Bank – Corporate Trade Finance in Europe | | Imagen1.jpg | | DCM.jpg | | | | LatinFinance | | | Equity Capital Markets | | M&A | ECAs A | | | Infrastructure Bank of the Year: Latin America Loan of the Year: Vaca Muerta Oil Sur | | | ECM.jpg | | M&A.jpg | ECAS.jpg | | | | | | Source: Dealogic, Infralogic, Bloomberg; specific filters apply. | | | | | | | | | A. US ECAs as of H1 2025. | | | | | Annual report 2025476 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Business performance We remain focused on capital-light activity and actively managing our balance sheet. As a result, our total revenue to risk-weighted assets ratio improved 1 pp year-on-year to 7.8%. Gross loans and advances to customers, excluding reverse repos and in constant euros, increased 15% year-on-year, boosted by double-digit growth in GTB, GB and GM. Customer deposits, excluding repos and in constant euros, rose 5% year-on-year, driven by Cash Management. Global Transaction Banking recorded good activity levels year-on- year in a challenging environment: • In Trade & Working Capital Solutions (T&WCS), activity grew year-on-year, supported by the expansion into new segments and partnerships, such as Invensa, a new global inventory finance platform, in alliance with Pemberton, and the implementation of innovative, tailored solutions to address new client demands. • Export Finance activity, which increased in our main markets, was impacted by Argentina. We achieved a fourth consecutive year as a global leader and strengthened our leadership in Sustainability through transactions carried out together with the Structured Finance team. • Cash Management activity was affected by interest rates easing across most of our markets. Nevertheless, we expanded real-time payment solutions and strengthened treasury connectivity, in line with our ambition to build a stronger European franchise while preserving our leadership in Spain, Portugal and Latin America. In Global Banking, activity rose in the year, especially on the back of our US BBO initiative. • In Corporate Finance (CF), strong growth was driven by M&A in the US and Europe, reflected in transactions such as with Orange, where we acted as financial advisor on the acquisition of its remaining stake in MasOrange. ECM activity recovered during the second half of the year. Leveraged Finance activity increased, especially in the US, with key mandates such as Advent’s leveraged buyout of Reckitt Essential Homes and with more important roles such as our lead arranger role in Partners Group’s acquisition of Middle River Power. • In Debt Finance, DCM performed well, supported by strong investor demand and refinancing-driven issuances in the US, Europe and Latin America. However, Syndicated Loans activity softened, though we maintained leading bookrunner roles in Latin American sovereign and corporate deals, with important clients such as the Republic of Colombia and Metro de Rio de Janeiro. • Structured Finance activity was broadly flat year-on-year despite challenging conditions during the first half of the year. We achieved notable growth in the US, reinforcing our leadership in Liquefied Natural Gas and Renewables sectors and gaining traction in Digital and Data Centres infrastructure. We are also expanding our business in the UK and Asia and maintaining a top global position in Project Finance advisory. In Global Markets, strong institutional client activity, particularly in the US, with disciplined risk management supported growth. Fixed income and FX products performed particularly well, offsetting weaker activity in Cash Equity. #### Results Underlying attributable profit in 2025 was EUR 2,834 million (19% of the Group's total operating areas), up 3% year-on-year. In constant euros, profit grew 7 %, as follows: • Total income rose 5% year-on-year, on the back of net interest income growth (+6%), mainly due to GM in Europe and the US, and record levels in net fee income (+9%) which grew across business lines. Other income was fairly stable year-on-year. By country, there was double-digit revenue growth in the US, Mexico and our branch in the UK. By business line, revenue rose 11% in GM and in GB, there was double-digit growth in CF, mainly in the US. GTB revenue decreased slightly, as growth in Trade & Working Capital Solutions was offset by lower results in Cash Management and Export Finance. | | | --- | | | | CIB. Total income by business | | EUR million and % change in constant euros | ![6982]() Note: total income includes revenue from other activities which are less material (EUR 163 million in 2024 and EUR 123 million in 2025). • Administrative expenses and amortizations increased 5% due to our investments in new products and capabilities to drive growth. As a result, net operating income increased 5% year-on-year and the efficiency ratio was 45.5%, one of the best in the sector. • Net loan-loss provisions have a limited impact on results due to the nature of the business. They increased year-on-year, though the cost of risk remained low at just 0.15%. • Other gains (losses) and provisions recorded a EUR 121 million loss compared to a EUR 354 million loss in 2024. RoTE (post-AT1) was 19.1%. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | CIB. Underlying income statement | | | | | | EUR million and % change | | | | | | | | | / | 2024 | | | 2025 | 2024 | % | % excl. FX | | | | | | | | Revenue | 8,488 | 8,338 | +2 | +5 | | Expenses | (3,866) | (3,794) | +2 | +5 | | Net operating income | 4,622 | 4,544 | +2 | +5 | | LLPs | (291) | (171) | +70 | +71 | | PBT | 4,210 | 4,019 | +5 | +9 | | Underlying attrib. profit | 2,834 | 2,747 | +3 | +7 | Detailed financial information in section [5.4 'Appendix'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_763). Annual report 2025477 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | | Wealth Management & Insurance | Underlying attributable profit | EUR 2,063 mn | | | | → During the year, we continued building the best wealth and insurance manager in Europe and the Americas, supported by our leading global private banking platform and our fund and insurance factories that leverage our scale and global capabilities to offer the best value proposition to our customers. | | | | | | → Total assets under management exceeded EUR 558 billion,+14% year-on-year in constant euros, on the back of excellent commercial dynamics. In Insurance, gross written premiums reached EUR 10.7 billion, +4% year-on-year in constant euros. | | | | | | → Underlying attributable profit amounted to EUR 2,063 million, 23% higher year-on-year (+27% in constant euros) with revenue increasing across all business lines and RoTE (post-AT1) at 68.5%. | | | #### Strategy Since its launch in 2017, our Wealth Management & Insurance business has remained one of the Group's main growth drivers. In 2025, we added a fourth business line, Portfolio Investments, to the three existing business lines: Private Banking, Santander Asset Management and Insurance. It integrates the investment platforms unit and other equity stakes in companies. In 2025, they all demonstrated the strength and scalability of our model, contributing to sustained double-digit growth. In 2025, we focused on the following strategic initiatives: • In Private Banking (PB), we reinforced our global position in key markets by enhancing our value proposition through greater specialization and stronger connectivity across Latin America, Europe and the US. We improved our global product offering and expanded internationally, for example in the Middle East, by strengthening partnerships, achieving our first milestones in business volumes and expanding our client base. This year, we strengthened our global ultra-high-net-worth (UHNW) team, offering a more specialized service and better access to sophisticated investment opportunities. We launched Beyond Wealth, our global family office service, completing its rollout in Spain and initiating the first phase in the US. We expanded our private markets offering, giving broader access to top-tier private equity, private debt and non-traditional strategies. We reinforced our product and advisory capabilities with an open structured products architecture, while our advisory service continued to grow, due to strong momentum in Spain and new initiatives in Brazil and Mexico. All of this contributed to a more comprehensive and sophisticated offering, with more predictable revenue that is less dependent on interest rates. | | | | --- | --- | | | | | Private Banking clients | | | Thousands | | | | | | | --- | --- | --- | | | | | | | | | ![32435593121543]() In 2025, Euromoney named Santander the Best International Private Bank in Latin America and Best International Private Bank in six countries, alongside additional distinctions. • In Santander Asset Management (SAM), our global asset manager, which provides investment solutions for retail and institutional customers, we continued transforming and globalizing our investment platform and streamlining our product offering to deliver a more focused and scalable proposition. Key milestones included the integration of Santander Private Banking Gestión and the incorporation of SAM Spain into our global operating model, further strengthening capabilities under a unified structure. Additionally, we completed the acquisition of the majority stake of Tresmares Capital, reinforcing our direct lending capabilities, and launched the Real Estate Coliving Opportunities fund, expanding our presence in real estate assets. We accelerated process automation, redesigning workflows to enhance efficiency. As part of this, we deployed an AI-based platform that supports automation and re-engineering opportunities across investment and distribution activities. • In Insurance, our bancassurance business is present in more than 20 countries through the Group's global businesses. In 2025, we reorganized our business around two verticals, Life & Pensions and Property & Casualty: • In Life & Pensions, we developed a new retirement offering, focused on savings and post-retirement income solutions. We launched a new life product for senior customers in Brazil and a new annuities product for private banking and affluent segments in Spain. We strengthened our unit-linked our proposition in Mexico. • In Property & Casualty, we expanded in high-growth areas: i) Health, with a new health product with Bupa in Chile; ii) SMEs, through enhanced protection products in collaboration with Getnet; and iii) Auto, leveraging Autocompara, our auto insurance comparison platform, adding insurers such as Suhai in Brazil, and deploying a phygital model for incomplete purchases in Brazil and Mexico. We remain focused on expanding Retirement Solutions, maximizing value from existing joint ventures, enhancing lifetime customer value across markets and driving sales and operational excellence to increase share of wallet. Since 2023, Insurance has operated under a single holding company, enabling unified governance, risk and control. In 2025, we strengthened strategic oversight by adding new board members and bringing new expertise into key leadership roles. • Portfolio Investments. We focused on capturing synergies and enhancing our value proposition and the service provided to our customers in its first year within Wealth. Annual report 2025478 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Business performance During 2025, solid commercial activity and a positive market performance enabled us to reach a total volume of assets under management (AuMs) of EUR 558 billion, +14% year-on-year in constant euros. By business and in constant euros, volumes performed as follows: • In PB, customer assets and liabilities reached a record of EUR 376 billion (+18% year-on-year), with all products growing, as we focus on offering products with greater added value, such as alternatives and discretionary portfolio management. Net new money totalled EUR 20.0 billion, increasing 11% year-on-year. Private asset commitments grew 39% year-on-year and our new global family office service reached EUR 5.7 billion in AuMs. Assets of advisory platforms grew 34% year-on-year. Our focus on offering our customers the benefits of our scale and international presence helped us expand our Private Banking customer base by 5% year-on-year to nearly 314,000. • In SAM, total AuMs reached an all-time high of EUR 256 billion, +9% year-on-year, on the back of the solid commercial activity, confirming strong client engagement and the attractive product offering. Net sales in 2025 reached EUR 3.7 billion. • In Insurance, gross written premiums reached EUR 10.7 billion in 2025, +4% year-on-year, mainly driven by life savings business. | | | | --- | --- | | | | | Wealth. 2025 business performance | | | EUR billion and % change in constant euros. December 2025 | | ![5520]() | | | --- | | | | / 2024 | | +14% | | +11% | | +9% | | +19% | | +24% | | +6% | | +13% | | +4% | Note: total products marketed, advised, under custody and/or managed. \*Excluding overlaps between PB and SAM (PB clients with investment funds managed by SAM). #### Results Underlying attributable profit was EUR 2,063 million (14% of the Group's total operating areas), up 23% compared to 2024. In constant euros, it was 27 % higher, by line item: • Total income increased 14% year-on-year, as a result of our focus on value-added solutions to expand our fee business and improve revenue recurrency and predictability. Net interest income decreased 14% year-on-year affected by Private Banking deposit cost inelasticity to interest rate cuts and a decline in the yield on assets in a lower interest rate environment in most of our markets. Net fee income rose 17% year-on-year, with nottable performances in Private Banking and SAM, driven by solid commercial activity, a positive market performance and our focus on promoting fee-generating activities and products. Other income improved year-on-year, boosted by the good performances of our joint ventures in Insurance and of the stakes managed by our Portfolio Investments business line. Including the fees ceded to our commercial network, total revenue reached EUR 6,775 million, up 13%, on the back of higher customer activity in PB, higher volumes in SAM and the good performance of Insurance-related businesses. | | | | --- | --- | | | | | Wealth. 2025 total income | | | EUR million and % change year-on-year in constant euros | | | | | | --- | --- | | | | | | | | PB | | | SAM | | | Insurance | | ![6610]() | | | | --- | --- | | | | | Total income | Total income + ceded fees | | +2% | +2% | | +19% | +15% | | +21% | +12% | | | | | | | --- | --- | --- | --- | | | | | | | | Total income | | Fees ceded to the commercial network | Note: additionally, Wealth's total income included EUR 195 million in 2024 and EUR 485 million in 2025 corresponding to Portfolio Investments. Information excludes overlaps between Wealth businesses and also insurance fees recorded in Consumer (EUR 972 million). • Administrative expenses and amortizations were 6% higher year- on-year, growing less than total income, reflecting investments made to strengthen PB teams and develop new capabilities to address the increase in commercial activity. • Net loan-loss provisions improved EUR 22 million compared to 2024. • The other gains (losses) and provisions improved EUR 16 million compared to 2024. When considering ceded fees along with our PAT, the total contribution to Group profit (PAT+Fees) reached EUR 3,796 million, up 19% year-on-year. RoTE (post-AT1) in 2025 was 68.5%. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Wealth. Underlying income statement | | | | | | EUR million and % change | | | | | | | | | / | 2024 | | | 2025 | 2024 | % | % excl. FX | | | | | | | | Revenue | 4,239 | 3,803 | +11 | +14 | | Expenses | (1,497) | (1,452) | +3 | +6 | | Net operating income | 2,742 | 2,351 | +17 | +19 | | LLPs | (22) | (44) | (50) | (50) | | PBT | 2,713 | 2,284 | +19 | +22 | | Underlying attrib. profit | 2,063 | 1,671 | +23 | +27 | Detailed financial information in section [5.4 'Appendix'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_763). Annual report 2025479 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | | Payments | Underlying attributable profit | EUR 883 mn | | | | → PagoNxt and Cards bring a unique position in the payments industry to the Group, covering both sides of the value chain of card payments (issuing and acquiring businesses) and account-to-account payments. | | | | | | → Activity increased in both businesses supported by global platform development, enabling further scale gains. In PagoNxt, Getnet's total payments volume increased 14% year-on-year and the number of transactions rose 7%. In Cards, both spending (in constant euros) and transactions grew 6% year-on-year. | | | | | | → Underlying attributable profit was EUR 883 million. Excluding charges related to the discontinuation of our merchant platform in Germany and Superdigital in Latin America in Q2 2024, profit increased 37% year-on-year, +50% in constant euros. PagoNxt's EBITDA margin improved 7.0 pp year-on-year to 34.5%. | | | #### PagoNxt and Cards strategy In 2025, we consolidated our unique position in the payments industry, with a sharp increase in activity in PagoNxt and Cards. In PagoNxt, we made progress in our strategic priorities: • In Getnet, we focused on strengthening our position in Spain, Portugal and Latin America through the implementation of a single API in these regions. We opened commercial offices in the US and China. • In Ebury, we made progress in: i) growing our customer base by expanding our online offering, including the launch of a new app for customers; ii) expanding geographically with a focus on emerging markets; and iii) introducing tailored products to capture business in new verticals, such as mass payments. Together with Getnet, we deployed a commercial proposition for acquiring services and cross-border payments with FX capabilities for large corporates in Latin America, and launched a collections and FX service for SMEs and corporates in Spain. • In PagoNxt Payments, we continued to deploy our technological platform for A2A payments processing, foreign exchange, fraud detection and other value-added services. In Cards, we focused on the following priorities in 2025: • Expand profitably our credit card business, strengthening our leadership position in Europe and South America, while also accelerating the debit-to-credit strategy with initiatives such as Pay Smarter, launched in all countries to enhance security, control and customer benefits. Our Cards Data Lab ended the year with more than 1.6 million new pre-approved customers, operating across nine countries, with new capabilities to improve customer experience. In corporates, we expanded our value proposition with Getnet, following the distribution of 185,000 bundles that include point of sale (PoS) terminals and credit cards, available in Spain and Latin America. • Improve customer payment experience, offering solutions to facilitate the use of our cards and digital interactions, and increase security. Key initiatives include the centralized management of tokenized payments, roll out of Click to Pay across several markets, improved incident management across digital channels and the ability to add our cards to Apple Pay and Google Pay across our countries. • Implement our global card platform, Plard, now live in our main countries. At year-end, it managed over 22 million debit and credit cards in Brazil, capturing new debit card sales in Chile for individuals and corporates and processing more than 450 million transactions per month in Brazil, Mexico, Chile, Spain and the UK. #### Business performance Gross loans and advances to customers, excluding reverse repos and in constant euros, rose 8%, driven by Cards. Payments has a small volume of deposits, concentrated in PagoNxt. Excluding repos and in constant euros they rose 30%. #### Results Underlying attributable profit was EUR 883 million in 2025 (6% of the Group's total operating areas), a 119% increase year-on-year. Excluding the charges in 2024 related to the discontinuation of platforms, profit grew 37% year-on-year, 50% up in constant euros. By line item and in constant euros: • Total income grew 17%, with double-digit growth in net interest income and net fee income, driven by higher activity. • Administrative expenses and amortizations rose 1% and decreased 3% in real terms, even after our investments in platforms in both Cards and PagoNxt. • Net loan-loss provisions, mainly related to Cards, increased 28% driven primarily by South America. • Other gains (losses) and provisions registered a lower loss, EUR 140 million compared to EUR 360 million in 2024, which was affected by the charges from the discontinuation of platforms. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Payments. Underlying income statement | | | | | | EUR million and % change | | | | | | | | | / | 2024 | | | 2025 | 2024 | % | % excl. FX | | | | | | | | Revenue | 6,013 | 5,459 | +10 | +17 | | Expenses | (2,360) | (2,430) | (3) | +1 | | Net operating income | 3,654 | 3,030 | +21 | +30 | | LLPs | (2,027) | (1,714) | +18 | +28 | | PBT | 1,486 | 955 | +56 | +74 | | Underlying attrib. profit | 883 | 404 | +119 | +155 | Detailed financial information in section [5.4 'Appendix'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_763). Annual report 2025480 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### PagoNxt #### Business performance In 2025, activity increased sharply. The total number of transactions in Getnet reached 10.5 billion, 7% higher year-on- year, and the total payments volume (TPV) was EUR 238 billion, 14% more than in 2024 in constant euros, driven by the good performances across countries, especially in Latin America. In PagoNxt Payments, the significant increase in the volume of payments processed enabled us to operate with greater efficiency, achieving a very competitive cost per transaction. | | | --- | | | | PagoNxt. Activity. TPV (Getnet) | | EUR billion and % change year-on-year in constant euros | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | | +14% | | | ![4147]() #### Results Underlying attributable profit of EUR 96 million in 2025, compared to a EUR 299 million loss in 2024 (EUR 56 million loss excluding the charges related to the discontinuation of platforms). In constant euros: • Total income rose 16% year-on-year, driven by the increase in revenue across the three business lines, boosted by higher activity. • Administrative expenses and amortizations only rose 1%, even after our investments to further develop our global platforms. • Net loan-loss provisions increased, mainly due to Getnet in Brazil. • Other gains (losses) and provisions recorded a loss of EUR 77 million, a significantly lower loss than a year ago due to the aforementioned charges related to the discontinuation of our platforms in 2024. EBITDA margin was 34.5%, 7.0 pp higher than in 2024. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | PagoNxt. Underlying income statement | | | | | | EUR million and % change | | | | | | | | | / | 2024 | | | 2025 | 2024 | % | % excl. FX | | | | | | | | Revenue | 1,373 | 1,240 | +11 | +16 | | Expenses | (1,138) | (1,160) | (2) | +1 | | Net operating income | +235 | +80 | +195 | +346 | | LLPs | (24) | (16) | +49 | +55 | | PBT | +134 | (233) | — | — | | Underlying attrib. profit | +96 | (299) | — | — | Detailed financial information in section [5.4 'Appendix'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_763). #### Cards #### Business performance In the year, customer card activity continued to increase across all payment types. The number of transactions grew 6% year-on-year, reaching EUR 15.5 billion. Spending also rose 6% year-on-year in constant euros, mainly driven by credit cards (+10%), increasing across all our countries. This growth was accompanied by an improvement in the quality of service, resulting in increases in our share of wallet. Gross loans and advances to customers, excluding reverse repos and in constant euros, rose 9%, with increases across most of our footprint, especially in Brazil, with grew double digits. | | | --- | | | | Cards. Activity. Spending | | EUR billion and % change year-on-year  in constant euros | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | | +6% | | | ![5595]() #### Results In 2025, underlying attributable profit was EUR 787 million, 12% higher compared to 2024. In constant euros, it rose 19%, by line item: • Total income increased 17%, driven by higher activity. Net interest income and net fee income rose 21% and 14%, respectively, mainly due to greater activity in credit cards. • Administrative expenses and amortizations were flat, due to our cost-control efforts. • Net loan-loss provisions rose 27%, driven by generalized loan growth and due to a less favourable macro environment in some of our countries. • Other gains (losses) and provisions recorded a EUR 63 million loss compared to a EUR 64 million loss in 2024. In 2025, RoTE (post-AT1) in Cards was 30.1% (28.5% in 2024). | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Cards. Underlying income statement | | | | | | EUR million and % change | | | | | | | | | / | 2024 | | | 2025 | 2024 | % | % excl. FX | | | | | | | | Revenue | 4,640 | 4,220 | +10 | +17 | | Expenses | (1,221) | (1,270) | (4) | 0 | | Net operating income | 3,419 | 2,950 | +16 | +24 | | LLPs | (2,003) | (1,698) | +18 | +27 | | PBT | 1,353 | 1,188 | +14 | +21 | | Underlying attrib. profit | 787 | 703 | +12 | +19 | Detailed financial information in section [5.4 'Appendix'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_763). Annual report 2025481 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | | Corporate Centre | Underlying attributable profit | -EUR 1,085 mn | | | | → The Corporate Centre continued to fulfil its support role for the Group by defining, developing and coordinating the Group's strategy, as well as providing services to the operating units, adding value. → It carries out the corporate oversight and control functions, coordinates interactions with the Group's supervisors and regulators and also carries out functions related to financial and capital management. → Underlying attributable loss was EUR 1,085 million, a 6% lower loss than in 2024 due to a lower impact from exchange rate hedges, which more than offset the negative effects from lower interest rates and higher net loan-loss provisions. | | | #### Strategy and functions The Corporate Centre contributes value to the Group, through the following functions, among others: • Implementing global control frameworks and supervision. • Fostering the exchange of best practices in cost management, which enables us to be maintain an efficiency level that ranks among the best in the industry. • Collaborating in the definition and execution of the global strategy, corporate development operations and projects that ensure we meet the business plan. • Contributing to the launch of projects that will be developed by our global businesses, aimed at leveraging our worldwide presence to generate economies of scale. • Ensuring open and constructive communication with shareholders, analysts, investors, bondholders, rating agencies and other market players. • Adding value to our businesses, countries and divisions by encouraging the exchange of best practices, driving and managing innovative global initiatives and defining corporate policies to improve process efficiency and customer service quality. Additionally, it coordinates the relationship with European regulators and supervisors and carries out functions related to financial and capital management, as follows: • Financial Management: • Structural management of liquidity risk associated with funding the Group’s recurring activity and stakes of a financial nature. As at 31 December 2025, the liquidity buffer was EUR 338 billion. This is done by ensuring the diversification of funding sources (issuances and others), maintaining an adequate profile in volumes, maturities and costs. The price of these transactions with other Group units is the market rate that includes all liquidity concepts (which the Group supports by immobilizing funds during the term of the transaction) and regulatory requirements (TLAC/MREL). • We also actively manage interest rate risk to dampen the impact of interest rate changes on net interest income, conducted via high credit quality, very liquid and low capital consumption derivatives. • Strategic management of exposure to exchange rates in equity and dynamic management of the FX hedges related to the units’ next 12 months results in euros. The net investments in equity currently hedged totalled EUR 16,842 million (mainly in the UK, Mexico, Chile and Poland) with different FX instruments (spots and forwards). • Management of capital and reserves: analysis, adequacy and management of the Group's capital including coordination with subsidiaries, monitoring profitability to maximize shareholder returns, setting solvency targets and capital contributions, monitoring the capital ratio in both regulatory and economic terms, and efficient capital allocation to the units. Annual report 2025482 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Results The underlying attributable loss in 2025 was  EUR 1,085 million, a 6% lower than in 2024 (loss of EUR 1,154 million), with the following breakdown by lines: • Net interest income declined EUR 182 million as lower interest rates impacted the balance sheet which has positive sensitivity to rate rises. • Losses on financial transactions improved by EUR 325 million, due to a lower impact from foreign currency hedges. • Administrative expenses and amortizations were 6% higher year- on-year, primarily impacted by higher IT expenses. • Net loan-loss provisions increased by EUR 200 million due to LLPs recorded in the first half of the year related to our plan to accelerate NPL ratio reductions, improving the Group's credit quality. • Other gains (losses) and provisions showed an improvement of EUR 171 million compared to 2024. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Corporate Centre. Underlying income statement | | | | | | EUR million | | | | | | | | 2025 | 2024 | % | | Net interest income | | (490) | (308) | 59.1 | | Net fee income | | (27) | (11) | 156.5 | | Gains (losses) on financial transactions A | | (82) | (408) | (79.8) | | Other operating income | | 19 | 50 | (63.0) | | Total income | | (581) | (676) | (14.0) | | Administrative expenses and amortizations | | (402) | (379) | 6.2 | | Net operating income | | (983) | (1,055) | (6.8) | | Net loan-loss provisions | | (198) | 3 | — | | Other gains (losses) and provisions | | (94) | (265) | (64.5) | | Profit before tax | | (1,275) | (1,317) | (3.2) | | Tax on profit | | 190 | 162 | 16.9 | | Profit from continuing operations | | (1,085) | (1,155) | (6.0) | | Net profit from discontinued operations | | — | — | — | | Consolidated profit | | (1,085) | (1,155) | (6.0) | | Non-controlling interests | | 0 | 1 | (99.7) | | Profit attributable to the parent | | (1,085) | (1,154) | (6.0) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Corporate Centre. Balance sheet and operating means | | | | | | EUR million | | | | | | | | 2025 | 2024 | % | | Loans and advances to customers | | 6,289 | 5,778 | 8.8 | | Cash, central banks and credit institutions | | 101,481 | 104,379 | (2.8) | | Debt instruments | | 11,076 | 10,923 | 1.4 | | Other financial assets | | 1,612 | 1,444 | 11.6 | | Other asset accounts | | 113,826 | 118,425 | (3.9) | | Total assets | | 234,284 | 240,948 | (2.8) | | Customer deposits | | 1,387 | 1,430 | (3.0) | | Central banks and credit institutions | | 21,640 | 21,730 | (0.4) | | Marketable debt securities | | 112,521 | 121,122 | (7.1) | | Other financial liabilities | | 773 | 48 | — | | Other liabilities accounts | | 6,662 | 7,256 | (8.2) | | Total liabilities | | 142,983 | 151,585 | (5.7) | | Total equity | | 91,301 | 89,363 | 2.2 | | | | | | | | Memorandum items: | | | | | | Gross loans and advances to customers B | | 6,349 | 5,853 | 8.5 | | Customer funds | | 1,387 | 1,299 | 6.7 | | Customer deposits C | | 1,387 | 1,299 | 6.7 | | Mutual funds | | — | — | — | | | | | | | | Operating means | | | | | | Number of employees | | 1,901 | 1,825 | 4.2 | | | | --- | | | | A. Includes exchange differences. | | B. Excluding reverse repos. | | C. Excluding repos. | Annual report 2025483 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 5.4 Appendix In this appendix, results are presented on an underlying basis and the balance sheet figures, ratios and other metrics include Poland, as they did in previous disclosures, i.e. maintaining the same perimeter as prior to the announcement of the Poland disposal. However, if we were to exclude Poland, the Group's main management ratios would not be materially affected. For further information, see sections  2. 'Significant events in 2025' and  [6. 'Alternative performance measures'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) of this chapter. For Argentina and any grouping which includes it, the variations in constant euros have been calculated considering the Argentine peso exchange rate on the last working day for each of the periods presented. For further information, see section [6. 'Alternative performance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) [measures'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_778) of this chapter. #### Primary segments | | | | | | | --- | --- | --- | --- | --- | | | | | | | | RETAIL & COMMERCIAL BANKING | | | | | | EUR million | | | | | | Underlying income statement | 2025 | 2024 | % | % excl. FX | | Net interest income | 26,409 | 27,937 | (5.5) | (2.2) | | Net fee income | 4,784 | 4,707 | 1.6 | 6.1 | | Gains (losses) on financial transactions ᴬ | 617 | 738 | (16.4) | (15.0) | | Other operating income | (594) | (1,008) | (41.1) | (39.8) | | Total income | 31,216 | 32,374 | (3.6) | (0.1) | | Administrative expenses and amortizations | (12,314) | (12,796) | (3.8) | 0.0 | | Net operating income | 18,902 | 19,578 | (3.4) | (0.2) | | Net loan-loss provisions | (5,416) | (5,846) | (7.3) | (2.2) | | Other gains (losses) and provisions | (2,320) | (2,875) | (19.3) | (17.5) | | Profit before tax | 11,167 | 10,857 | 2.9 | 5.4 | | Tax on profit | (2,812) | (3,088) | (8.9) | (7.0) | | Profit from continuing operations | 8,354 | 7,769 | 7.5 | 10.3 | | Net profit from discontinued operations | — | — | — | — | | Consolidated profit | 8,354 | 7,769 | 7.5 | 10.3 | | Non-controlling interests | (689) | (522) | 32.0 | 33.8 | | Underlying profit attributable to the parent | 7,666 | 7,247 | 5.8 | 8.6 | | | | | | | | Balance sheet and activity metrics | | | | | | Loans and advances to customers | 604,870 | 608,828 | (0.7) | 1.9 | | Customer deposits | 674,133 | 660,748 | 2.0 | 4.0 | | | | | | | | Memorandum items: | | | | | | Gross loans and advances to customers ᴮ | 600,686 | 609,372 | (1.4) | 1.0 | | Customer funds | 777,742 | 748,855 | 3.9 | 5.6 | | Customer deposits C | 662,388 | 649,214 | 2.0 | 4.0 | | Mutual funds | 115,354 | 99,641 | 15.8 | 16.2 | | Risk-weighted assets | 294,948 | 288,782 | 2.1 | | | | | | | | | Ratios (%), operating means and customers | | | | | | RoTE | 18.5 | 18.9 | (0.5) | | | RoTE (post-AT1) | 17.7 | 18.2 | (0.4) | | | Efficiency ratio | 39.4 | 39.5 | (0.1) | | | NPL ratio | 2.97 | 3.18 | (0.21) | | | NPL coverage ratio | 61 | 58 | 2 | | | Number of employees | 123,836 | 131,653 | (5.9) | | | Number of total customers (thousands) | 153,134 | 147,140 | 4.1 | | | Number of active customers (thousands) | 81,045 | 79,079 | 2.5 | | | | | | | | | A.  Includes exchange differences. | | | | | | B.  Excluding reverse repos. | | | | | | C.  Excluding repos. | | | | | Annual report 2025484 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | --- | --- | --- | --- | | | | | | | Retail Spain | | | | | EUR million | | | | | Underlying income statement | 2025 | 2024 | % | | Net interest income | 5,796 | 5,869 | (1.2) | | Net fee income | 1,076 | 1,074 | 0.2 | | Total income | 7,007 | 7,071 | (0.9) | | Administrative expenses and amortizations | (2,268) | (2,288) | (0.9) | | Net operating income | 4,739 | 4,783 | (0.9) | | Net loan-loss provisions | (996) | (1,092) | (8.8) | | Profit before tax | 3,250 | 2,797 | 16.2 | | | | | | | Balance sheet and activity metrics | | | | | Loans and advances to customers | 152,013 | 151,105 | 0.6 | | Customer deposits | 230,850 | 222,092 | 3.9 | | | | | | | Memorandum items: | | | | | Gross loans and advances to customers ᴬ | 154,764 | 154,580 | 0.1 | | Customer funds | 281,486 | 266,230 | 5.7 | | Customer deposits ᴮ | 230,850 | 222,089 | 3.9 | | Mutual funds | 50,636 | 44,141 | 14.7 | | | | | | | A.  Excluding reverse repos. | | | | | B.  Excluding repos. | | | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Retail UK | | | | | | EUR million | | | | | | Underlying income statement | 2025 | 2024 | % | % excl. FX | | Net interest income | 4,728 | 4,672 | 1.2 | 2.4 | | Net fee income | 50 | (33) | — | — | | Total income | 4,681 | 4,618 | 1.4 | 2.6 | | Administrative expenses and amortizations | (2,463) | (2,601) | (5.3) | (4.2) | | Net operating income | 2,218 | 2,017 | 10.0 | 11.3 | | Net loan-loss provisions | (122) | (14) | 789.4 | 800.1 | | Profit before tax | 1,603 | 1,600 | 0.2 | 1.4 | | | | | | | | Balance sheet and activity metrics | | | | | | Loans and advances to customers | 235,994 | 239,787 | (1.6) | 3.6 | | Customer deposits | 215,695 | 219,293 | (1.6) | 3.5 | | | | | | | | Memorandum items: | | | | | | Gross loans and advances to customers ᴬ | 221,464 | 229,645 | (3.6) | 1.5 | | Customer funds | 215,472 | 217,765 | (1.1) | 4.1 | | Customer deposits ᴮ | 209,427 | 211,720 | (1.1) | 4.1 | | Mutual funds | 6,046 | 6,045 | 0.0 | 5.3 | | | | | | | | A.  Excluding reverse repos. | | | | | | B.  Excluding repos. | | | | | Annual report 2025485 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Retail Mexico | | | | | | EUR million | | | | | | Underlying income statement | 2025 | 2024 | % | % excl. FX | | Net interest income | 3,041 | 3,134 | (3.0) | 6.5 | | Net fee income | 723 | 699 | 3.4 | 13.5 | | Total income | 3,719 | 3,769 | (1.3) | 8.4 | | Administrative expenses and amortizations | (1,669) | (1,757) | (5.0) | 4.3 | | Net operating income | 2,049 | 2,011 | 1.9 | 11.9 | | Net loan-loss provisions | (626) | (654) | (4.4) | 5.1 | | Profit before tax | 1,354 | 1,318 | 2.7 | 12.8 | | | | | | | | Balance sheet and activity metrics | | | | | | Loans and advances to customers | 32,588 | 30,981 | 5.2 | 3.1 | | Customer deposits | 42,799 | 38,042 | 12.5 | 10.2 | | | | | | | | Memorandum items: | | | | | | Gross loans and advances to customers ᴬ | 33,375 | 31,724 | 5.2 | 3.1 | | Customer funds | 54,278 | 48,220 | 12.6 | 10.3 | | Customer deposits ᴮ | 38,864 | 35,245 | 10.3 | 8.1 | | Mutual funds | 15,414 | 12,975 | 18.8 | 16.4 | | | | | | | | A.  Excluding reverse repos. | | | | | | B.  Excluding repos. | | | | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Retail Brazil | | | | | | EUR million | | | | | | Underlying income statement | 2025 | 2024 | % | % excl. FX | | Net interest income | 5,957 | 6,795 | (12.3) | (4.9) | | Net fee income | 1,364 | 1,531 | (10.9) | (3.3) | | Total income | 7,146 | 8,220 | (13.1) | (5.7) | | Administrative expenses and amortizations | (2,938) | (3,152) | (6.8) | 1.1 | | Net operating income | 4,209 | 5,068 | (17.0) | (9.9) | | Net loan-loss provisions | (2,653) | (2,973) | (10.8) | (3.2) | | Profit before tax | 813 | 1,352 | (39.9) | (34.7) | | | | | | | | Balance sheet and activity metrics | | | | | | Loans and advances to customers | 50,883 | 53,227 | (4.4) | (4.0) | | Customer deposits | 58,286 | 54,658 | 6.6 | 7.1 | | | | | | | | Memorandum items: | | | | | | Gross loans and advances to customers ᴬ | 54,571 | 56,663 | (3.7) | (3.2) | | Customer funds | 80,749 | 72,993 | 10.6 | 11.1 | | Customer deposits ᴮ | 58,241 | 53,865 | 8.1 | 8.6 | | Mutual funds | 22,508 | 19,128 | 17.7 | 18.2 | | | | | | | | A.  Excluding reverse repos. | | | | | | B.  Excluding repos. | | | | | Annual report 2025486 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | DIGITAL CONSUMER BANK | | | | | | EUR million | | | | | | Underlying income statement | 2025 | 2024 | % | % excl. FX | | Net interest income | 11,036 | 10,777 | 2.4 | 5.4 | | Net fee income | 1,479 | 1,508 | (2.0) | 0.4 | | Gains (losses) on financial transactions ᴬ | (11) | (4) | 168.4 | 126.4 | | Other operating income | 511 | 631 | (19.0) | (17.0) | | Total income | 13,015 | 12,912 | 0.8 | 3.6 | | Administrative expenses and amortizations | (5,287) | (5,183) | 2.0 | 4.4 | | Net operating income | 7,728 | 7,729 | 0.0 | 3.1 | | Net loan-loss provisions | (4,457) | (4,562) | (2.3) | 1.4 | | Other gains (losses) and provisions | (704) | (939) | (25.0) | (23.8) | | Profit before tax | 2,566 | 2,228 | 15.2 | 18.2 | | Tax on profit | (489) | (294) | 66.2 | 69.4 | | Profit from continuing operations | 2,077 | 1,934 | 7.4 | 10.4 | | Net profit from discontinued operations | — | — | — | — | | Consolidated profit | 2,077 | 1,934 | 7.4 | 10.4 | | Non-controlling interests | (336) | (275) | 22.1 | 23.5 | | Underlying profit attributable to the parent | 1,741 | 1,659 | 4.9 | 8.2 | | | | | | | | Balance sheet and activity metrics | | | | | | Loans and advances to customers | 203,857 | 207,107 | (1.6) | 1.7 | | Customer deposits | 129,946 | 128,975 | 0.8 | 5.3 | | | | | | | | Memorandum items: | | | | | | Gross loans and advances to customers ᴮ | 211,894 | 215,164 | (1.5) | 1.9 | | Customer funds | 138,999 | 137,122 | 1.4 | 6.0 | | Customer deposits C | 129,909 | 128,933 | 0.8 | 5.3 | | Mutual funds | 9,089 | 8,189 | 11.0 | 17.1 | | Risk-weighted assets | 155,664 | 151,102 | 3.0 | | | | | | | | | Ratios (%), operating means and customers | | | | | | RoTE | 9.4 | 9.8 | (0.4) | | | RoTE (post-AT1) | 8.6 | 8.9 | (0.3) | | | Efficiency ratio | 40.6 | 40.1 | 0.5 | | | NPL ratio | 5.32 | 5.07 | 0.24 | | | NPL coverage ratio | 71 | 74 | (2) | | | Number of employees | 30,751 | 29,903 | 2.8 | | | Number of total customers (thousands) | 26,709 | 25,041 | 6.7 | | | | | | | | | A.  Includes exchange differences. | | | | | | B.  Excluding reverse repos. | | | | | | C.  Excluding repos. | | | | | Annual report 2025487 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | DCB Europe | | | | | | EUR million | | | | | | Underlying income statement | 2025 | 2024 | % | % excl. FX | | Net interest income | 4,685 | 4,361 | 7.4 | 7.5 | | Net fee income | 804 | 902 | (10.9) | (10.8) | | Total income | 5,925 | 5,679 | 4.3 | 4.4 | | Administrative expenses and amortizations | (2,611) | (2,604) | 0.3 | 0.4 | | Net operating income | 3,314 | 3,075 | 7.8 | 7.9 | | Net loan-loss provisions | (1,363) | (1,209) | 12.7 | 12.9 | | Profit before tax | 1,398 | 1,131 | 23.6 | 23.4 | | | | | | | | Balance sheet and activity metrics | | | | | | Loans and advances to customers | 139,322 | 137,038 | 1.7 | 2.1 | | Customer deposits | 82,359 | 81,376 | 1.2 | 1.3 | | | | | | | | Memorandum items: | | | | | | Gross loans and advances to customers ᴬ | 142,477 | 139,927 | 1.8 | 2.3 | | Customer funds | 87,559 | 85,876 | 2.0 | 2.0 | | Customer deposits ᴮ | 82,359 | 81,376 | 1.2 | 1.3 | | Mutual funds | 5,200 | 4,500 | 15.6 | 15.6 | | | | | | | | A.  Excluding reverse repos. | | | | | | B.  Excluding repos. | | | | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | DCB US | | | | | | EUR million | | | | | | Underlying income statement | 2025 | 2024 | % | % excl. FX | | Net interest income | 4,581 | 4,651 | (1.5) | 2.8 | | Net fee income | 339 | 303 | 11.8 | 16.6 | | Total income | 5,072 | 5,297 | (4.2) | (0.1) | | Administrative expenses and amortizations | (2,141) | (2,159) | (0.8) | 3.5 | | Net operating income | 2,931 | 3,138 | (6.6) | (2.6) | | Net loan-loss provisions | (2,140) | (2,466) | (13.2) | (9.5) | | Profit before tax | 699 | 551 | 26.9 | 32.4 | | | | | | | | Balance sheet and activity metrics | | | | | | Loans and advances to customers | 43,887 | 52,256 | (16.0) | (5.0) | | Customer deposits | 46,481 | 47,583 | (2.3) | 10.5 | | | | | | | | Memorandum items: | | | | | | Gross loans and advances to customers ᴬ | 47,402 | 56,266 | (15.8) | (4.7) | | Customer funds | 50,333 | 51,230 | (1.8) | 11.2 | | Customer deposits ᴮ | 46,444 | 47,541 | (2.3) | 10.5 | | Mutual funds | 3,889 | 3,689 | 5.4 | 19.3 | | | | | | | | A.  Excluding reverse repos. | | | | | | B.  Excluding repos. | | | | | Annual report 2025488 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | CORPORATE & INVESTMENT BANKING | | | | | | EUR million | | | | | | Underlying income statement | 2025 | 2024 | % | % excl. FX | | Net interest income | 4,047 | 3,988 | 1.5 | 5.7 | | Net fee income | 2,713 | 2,548 | 6.4 | 9.3 | | Gains (losses) on financial transactions ᴬ | 1,358 | 1,629 | (16.7) | (14.3) | | Other operating income | 370 | 172 | 114.9 | 111.6 | | Total income | 8,488 | 8,338 | 1.8 | 5.2 | | Administrative expenses and amortizations | (3,866) | (3,794) | 1.9 | 5.1 | | Net operating income | 4,622 | 4,544 | 1.7 | 5.3 | | Net loan-loss provisions | (291) | (171) | 70.3 | 70.9 | | Other gains (losses) and provisions | (121) | (354) | (65.8) | (65.2) | | Profit before tax | 4,210 | 4,019 | 4.7 | 8.7 | | Tax on profit | (1,171) | (1,068) | 9.6 | 14.0 | | Profit from continuing operations | 3,039 | 2,951 | 3.0 | 6.8 | | Net profit from discontinued operations | — | — | — | — | | Consolidated profit | 3,039 | 2,951 | 3.0 | 6.8 | | Non-controlling interests | (205) | (204) | 0.2 | 4.9 | | Underlying profit attributable to the parent | 2,834 | 2,747 | 3.2 | 6.9 | | | | | | | | Balance sheet and activity metrics | | | | | | Loans and advances to customers | 210,245 | 184,834 | 13.7 | 18.3 | | Customer deposits | 224,981 | 202,360 | 11.2 | 15.2 | | | | | | | | Memorandum items: | | | | | | Gross loans and advances to customers ᴮ | 151,894 | 136,697 | 11.1 | 15.0 | | Customer funds | 152,903 | 150,736 | 1.4 | 3.8 | | Customer deposits C | 140,438 | 136,677 | 2.8 | 5.4 | | Mutual funds | 12,465 | 14,059 | (11.3) | (10.8) | | Risk-weighted assets | 109,153 | 122,697 | (11.0) | | | | | | | | | Ratios (%) and operating means | | | | | | RoTE | 19.8 | 18.0 | 1.8 | | | RoTE (post-AT1) | 19.1 | 17.3 | 1.8 | | | Efficiency ratio | 45.5 | 45.5 | 0.0 | | | NPL ratio | 0.69 | 0.83 | (0.14) | | | NPL coverage ratio | 48 | 39 | 9 | | | Number of employees | 14,009 | 13,385 | 4.7 | | | | | | | | | A.  Includes exchange differences. | | | | | | B.  Excluding reverse repos. | | | | | | C.  Excluding repos. | | | | | Annual report 2025489 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | WEALTH MANAGEMENT & INSURANCE | | | | | | EUR million | | | | | | Underlying income statement | 2025 | 2024 | % | % excl. FX | | Net interest income | 1,445 | 1,706 | (15.3) | (13.7) | | Net fee income | 1,703 | 1,497 | 13.8 | 16.8 | | Gains (losses) on financial transactions ᴬ | 512 | 257 | 99.6 | 104.5 | | Other operating income | 579 | 343 | 68.6 | 78.8 | | Total income | 4,239 | 3,803 | 11.4 | 14.3 | | Administrative expenses and amortizations | (1,497) | (1,452) | 3.1 | 6.0 | | Net operating income | 2,742 | 2,351 | 16.6 | 19.5 | | Net loan-loss provisions | (22) | (44) | (49.8) | (49.7) | | Other gains (losses) and provisions | (7) | (23) | (69.2) | (68.9) | | Profit before tax | 2,713 | 2,284 | 18.8 | 21.7 | | Tax on profit | (555) | (534) | 4.0 | 5.9 | | Profit from continuing operations | 2,158 | 1,750 | 23.3 | 26.6 | | Net profit from discontinued operations | — | — | — | — | | Consolidated profit | 2,158 | 1,750 | 23.3 | 26.6 | | Non-controlling interests | (95) | (79) | 20.3 | 23.2 | | Underlying profit attributable to the parent | 2,063 | 1,671 | 23.4 | 26.7 | | | | | | | | Balance sheet and activity metrics | | | | | | Loans and advances to customers | 26,585 | 24,526 | 8.4 | 13.4 | | Customer deposits | 63,964 | 61,337 | 4.3 | 6.8 | | | | | | | | Memorandum items: | | | | | | Gross loans and advances to customers ᴮ | 26,749 | 24,691 | 8.3 | 13.3 | | Customer funds | 189,870 | 172,243 | 10.2 | 12.4 | | Customer deposits C | 62,888 | 60,409 | 4.1 | 6.7 | | Mutual funds | 126,982 | 111,833 | 13.5 | 15.4 | | Risk-weighted assets | 19,027 | 12,123 | 56.9 | | | Assets under management | 558,403 | 497,188 | 12.3 | 14.1 | | Gross written premiums | 10,745 | 10,880 | (1.2) | 4.3 | | | | | | | | Ratios (%), operating means and customers | | | | | | RoTE | 69.2 | 77.6 | (8.4) | | | RoTE (post-AT1) | 68.5 | 76.8 | (8.4) | | | Efficiency ratio | 35.3 | 38.2 | (2.9) | | | NPL ratio | 0.86 | 0.93 | (0.08) | | | NPL coverage ratio | 71 | 71 | 0 | | | Number of employees | 7,531 | 7,707 | (2.3) | | | Number of Private Banking customers (thousands) | 314 | 299 | 5.1 | | | | | | | | | A.  Includes exchange differences. | | | | | | B.  Excluding reverse repos. | | | | | | C.  Excluding repos. | | | | | Annual report 2025490 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | PAYMENTS | | | | | | EUR million | | | | | | Underlying income statement | 2025 | 2024 | % | % excl. FX | | Net interest income | 2,907 | 2,567 | 13.2 | 21.4 | | Net fee income | 3,008 | 2,759 | 9.0 | 14.8 | | Gains (losses) on financial transactions ᴬ | 44 | 61 | (28.1) | (21.8) | | Other operating income | 55 | 72 | (24.2) | (27.6) | | Total income | 6,013 | 5,459 | 10.1 | 16.9 | | Administrative expenses and amortizations | (2,360) | (2,430) | (2.9) | 0.6 | | Net operating income | 3,654 | 3,030 | 20.6 | 30.5 | | Net loan-loss provisions | (2,027) | (1,714) | 18.3 | 27.7 | | Other gains (losses) and provisions | (140) | (360) | (61.1) | (60.7) | | Profit before tax | 1,486 | 955 | 55.6 | 73.6 | | Tax on profit | (503) | (462) | 8.9 | 18.1 | | Profit from continuing operations | 984 | 493 | 99.3 | 128.5 | | Net profit from discontinued operations | — | — | — | — | | Consolidated profit | 984 | 493 | 99.3 | 128.5 | | Non-controlling interests | (101) | (90) | 12.0 | 18.8 | | Underlying profit attributable to the parent | 883 | 404 | 118.8 | 155.5 | | | | | | | | Balance sheet and activity metrics | | | | | | Loans and advances to customers | 24,469 | 22,995 | 6.4 | 7.2 | | Customer deposits | 1,415 | 1,086 | 30.3 | 30.3 | | | | | | | | Memorandum items: | | | | | | Gross loans and advances to customers ᴮ | 26,618 | 24,768 | 7.5 | 8.3 | | Customer funds | 1,415 | 1,086 | 30.3 | 30.3 | | Customer deposits C | 1,415 | 1,086 | 30.3 | 30.3 | | Mutual funds | — | — | — | — | | Risk-weighted assets | 22,883 | 22,795 | 0.4 | | | | | | | | | Ratios (%) and operating means | | | | | | RoTE | 28.8 | 14.1 | 14.7 | | | RoTE (post-AT1) | 28.0 | 13.3 | 14.7 | | | NPL ratio | 87.60 | 97.50 | (9.90) | | | NPL coverage ratio | 127 | 137 | (11) | | | Number of employees | 20,375 | 22,280 | (8.6) | | | | | | | | | A.  Includes exchange differences. | | | | | | B.  Excluding reverse repos. | | | | | | C.  Excluding repos. | | | | | Annual report 2025491 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | PAGONXT | | | | | | EUR million | | | | | | Underlying income statement | 2025 | 2024 | % | % excl. FX | | Net interest income | 167 | 132 | 27.0 | 35.7 | | Net fee income | 1,059 | 958 | 10.5 | 16.4 | | Gains (losses) on financial transactions ᴬ | (24) | 0 | — | — | | Other operating income | 171 | 150 | 14.3 | 14.9 | | Total income | 1,373 | 1,240 | 10.8 | 16.2 | | Administrative expenses and amortizations | (1,138) | (1,160) | (1.9) | 0.8 | | Net operating income | 235 | 80 | 194.6 | 345.7 | | Net loan-loss provisions | (24) | (16) | 48.5 | 55.1 | | Other gains (losses) and provisions | (77) | (296) | (74.0) | (73.8) | | Profit before tax | 134 | (233) | — | 0.0 | | Tax on profit | (19) | (57) | (65.9) | (60.1) | | Profit from continuing operations | 115 | (290) | 0.0 | 0.0 | | Net profit from discontinued operations | — | — | — | — | | Consolidated profit | 115 | (290) | 0.0 | 0.0 | | Non-controlling interests | (19) | (9) | 101.1 | 120.7 | | Underlying profit attributable to the parent | 96 | (299) | 0.0 | 0.0 | | | | | | | | Balance sheet and activity metrics | | | | | | Loans and advances to customers | 977 | 1,066 | (8.3) | (8.4) | | Customer deposits | 1,392 | 1,038 | 34.2 | 34.2 | | | | | | | | Memorandum items: | | | | | | Gross loans and advances to customers ᴮ | 1,002 | 1,087 | (7.8) | (7.9) | | Customer funds | 1,392 | 1,038 | 34.2 | 34.2 | | Customer deposits C | 1,392 | 1,038 | 34.2 | 34.2 | | Mutual funds | — | — | — | — | | Risk-weighted assets | 4,421 | 4,898 | (9.7) | | | Total transactions (Getnet, million) | 10,549 | 9,837 | 7.2 | | | Total payments volume (Getnet) | 237,912 | 221,787 | 7.3 | 13.6 | | | | | | | | Ratios (%) | | | | | | EBITDA margin | 34.5 | 27.5 | 7.0 | | | Efficiency ratio | 82.9 | 93.6 | (10.7) | | | | | | | | | A.  Includes exchange differences. | | | | | | B.  Excluding reverse repos. | | | | | | C.  Excluding repos. | | | | | Annual report 2025492 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | CARDS | | | | | | EUR million | | | | | | Underlying income statement | 2025 | 2024 | % | % excl. FX | | Net interest income | 2,740 | 2,436 | 12.5 | 20.7 | | Net fee income | 1,949 | 1,801 | 8.2 | 13.9 | | Gains (losses) on financial transactions ᴬ | 68 | 61 | 11.5 | 21.3 | | Other operating income | (117) | (78) | 50.0 | 58.7 | | Total income | 4,640 | 4,220 | 10.0 | 17.1 | | Administrative expenses and amortizations | (1,221) | (1,270) | (3.8) | 0.5 | | Net operating income | 3,419 | 2,950 | 15.9 | 24.4 | | Net loan-loss provisions | (2,003) | (1,698) | 18.0 | 27.4 | | Other gains (losses) and provisions | (63) | (64) | (0.8) | 0.8 | | Profit before tax | 1,353 | 1,188 | 13.8 | 21.5 | | Tax on profit | (484) | (405) | 19.4 | 28.1 | | Profit from continuing operations | 869 | 783 | 10.9 | 18.1 | | Net profit from discontinued operations | — | — | — | — | | Consolidated profit | 869 | 783 | 10.9 | 18.1 | | Non-controlling interests | (82) | (81) | 1.6 | 7.3 | | Underlying profit attributable to the parent | 787 | 703 | 12.0 | 19.3 | | | | | | | | Balance sheet and activity metrics | | | | | | Loans and advances to customers | 23,491 | 21,929 | 7.1 | 8.0 | | Customer deposits | 23 | 49 | — | (53.3) | | | | | | | | Memorandum items: | | | | | | Gross loans and advances to customers ᴮ | 25,616 | 23,681 | 8.2 | 9.0 | | Customer funds | 23 | 49 | — | (53.3) | | Customer deposits C | 23 | 49 | — | (53.3) | | Mutual funds | — | — | — | — | | Risk-weighted assets | 18,462 | 17,897 | 3.2 | | | Number of total cards (millions) | 108 | 106 | 2.3 | | | | | | | | | Ratios (%) | | | | | | RoTE | 30.7 | 29.2 | 1.5 | | | RoTE (post-AT1) | 30.1 | 28.5 | 1.5 | | | Efficiency ratio | 26.3 | 30.1 | (3.8) | | | NPL ratio | 6.43 | 5.31 | 1.12 | | | NPL coverage ratio | 129 | 139 | (11) | | | | | | | | | A.  Includes exchange differences. | | | | | | B.  Excluding reverse repos. | | | | | | C.  Excluding repos. | | | | | Annual report 2025493 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Secondary segments | | | | | | | | | | | | EUR million | | | | | | | | | | | | | | Spain | | | | | UK | | | | | Underlying income statement | | 2025 | 2024 | % | | | 2025 | 2024 | % | % excl. FX | | Net interest income | | 7,305 | 7,256 | 0.7 | | | 5,008 | 4,950 | 1.2 | 2.4 | | Net fee income | | 3,022 | 2,867 | 5.4 | | | 369 | 283 | 30.3 | 31.8 | | Gains (losses) on financial transactions A | | 841 | 1,100 | (23.6) | | | (100) | (18) | 445.8 | 452.4 | | Other operating income | | 823 | 751 | 9.6 | | | 3 | 2 | 81.6 | 83.8 | | Total income | | 11,990 | 11,974 | 0.1 | | | 5,280 | 5,216 | 1.2 | 2.4 | | Administrative expenses and amortizations | | (4,284) | (4,271) | 0.3 | | | (2,771) | (2,918) | (5.0) | (3.9) | | Net operating income | | 7,706 | 7,703 | 0.0 | | | 2,509 | 2,299 | 9.1 | 10.5 | | Net loan-loss provisions | | (1,142) | (1,259) | (9.3) | | | (177) | (64) | 177.4 | 180.7 | | Other gains (losses) and provisions | | (482) | (1,003) | (52.0) | | | (539) | (441) | 22.1 | 23.5 | | Profit before tax | | 6,083 | 5,440 | 11.8 | | | 1,794 | 1,794 | 0.0 | 1.2 | | Tax on profit | | (1,811) | (1,678) | 7.9 | | | (486) | (488) | (0.3) | 0.9 | | Profit from continuing operations | | 4,272 | 3,763 | 13.5 | | | 1,307 | 1,306 | 0.1 | 1.3 | | Net profit from discontinued operations | | — | — | — | | | — | — | — | — | | Consolidated profit | | 4,272 | 3,763 | 13.5 | | | 1,307 | 1,306 | 0.1 | 1.3 | | Non-controlling interests | | 0 | 0 | (2.5) | | | — | — | — | — | | Profit attributable to the parent | | 4,272 | 3,762 | 13.5 | | | 1,307 | 1,306 | 0.1 | 1.3 | | | | | | | | | | | | | | Balance sheet | | | | | | | | | | | | Loans and advances to customers | | 264,950 | 246,897 | 7.3 | | | 242,624 | 246,453 | (1.6) | 3.6 | | Cash, central banks and credit institutions | | 90,438 | 99,657 | (9.3) | | | 55,335 | 54,787 | 1.0 | 6.3 | | Debt instruments | | 120,671 | 94,519 | 27.7 | | | 10,570 | 15,120 | (30.1) | (26.4) | | Other financial assets | | 51,675 | 48,132 | 7.4 | | | 270 | 390 | (30.8) | (27.2) | | Other asset accounts | | 14,773 | 17,521 | (15.7) | | | 4,048 | 3,382 | 19.7 | 26.0 | | Total assets | | 542,507 | 506,725 | 7.1 | | | 312,846 | 320,132 | (2.3) | 2.9 | | Customer deposits | | 354,943 | 323,425 | 9.7 | | | 225,708 | 230,408 | (2.0) | 3.1 | | Central banks and credit institutions | | 54,996 | 57,218 | (3.9) | | | 18,326 | 25,665 | (28.6) | (24.8) | | Marketable debt securities | | 29,957 | 27,385 | 9.4 | | | 51,231 | 47,933 | 6.9 | 12.5 | | Other financial liabilities | | 63,188 | 59,976 | 5.4 | | | 2,441 | 2,500 | (2.4) | 2.8 | | Other liabilities accounts | | 22,268 | 21,163 | 5.2 | | | 2,277 | 1,733 | 31.4 | 38.3 | | Total liabilities | | 525,352 | 489,168 | 7.4 | | | 299,984 | 308,239 | (2.7) | 2.4 | | Total equity | | 17,155 | 17,557 | (2.3) | | | 12,863 | 11,893 | 8.2 | 13.8 | | | | | | | | | | | | | | Memorandum items: | | | | | | | | | | | | Gross loans and advances to customers B | | 237,385 | 225,759 | 5.1 | | | 228,273 | 236,496 | (3.5) | 1.6 | | Customer funds | | 429,464 | 399,999 | 7.4 | | | 227,160 | 230,479 | (1.4) | 3.7 | | Customer deposits C | | 322,070 | 306,389 | 5.1 | | | 219,440 | 222,835 | (1.5) | 3.7 | | Mutual funds | | 107,394 | 93,609 | 14.7 | | | 7,719 | 7,643 | 1.0 | 6.3 | | | | | | | | | | | | | | Ratios (%), operating means and customers | | | | | | | | | | | | RoTE | | 25.1 | 21.7 | 3.4 | | | 10.7 | 11.1 | (0.4) | | | RoTE (post-AT1) | | 24.3 | 20.9 | 3.4 | | | 10.2 | 10.6 | (0.4) | | | Efficiency ratio | | 35.7 | 35.7 | 0.1 | | | 52.5 | 55.9 | (3.5) | | | NPL ratio | | 1.96 | 2.68 | (0.73) | | | 1.08 | 1.33 | (0.25) | | | NPL coverage ratio | | 55 | 53 | 2 | | | 33 | 29 | 3 | | | Number of branches | | 1,630 | 1,827 | (10.8) | | | 363 | 444 | (18.2) | | | Number of total customers (thousands) | | 15,362 | 15,307 | 0.4 | | | 22,720 | 22,541 | 0.8 | | | Number of active customers (thousands) | | 9,242 | 8,842 | 4.5 | | | 13,547 | 13,646 | (0.7) | | | | | | | | | | | | | | | A. Includes exchange differences. | | | | | | | | | | | | B. Excluding reverse repos. | | | | | | | | | | | | C. Excluding repos. | | | | | | | | | | | Annual report 2025494 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | EUR million | | | | | | | | | | | | | | Portugal | | | | | Poland | | | | | Underlying income statement | | 2025 | 2024 | % | | | 2025 | 2024 | % | % excl. FX | | Net interest income | | 1,346 | 1,548 | (13.0) | | | 2,953 | 2,844 | 3.8 | 2.2 | | Net fee income | | 506 | 467 | 8.2 | | | 733 | 674 | 8.8 | 7.1 | | Gains (losses) on financial transactions A | | 70 | 45 | 56.9 | | | 82 | 57 | 43.3 | 41.1 | | Other operating income | | 36 | 40 | (9.0) | | | (44) | (20) | 121.4 | 118.0 | | Total income | | 1,959 | 2,100 | (6.7) | | | 3,724 | 3,555 | 4.7 | 3.1 | | Administrative expenses and amortizations | | (548) | (548) | 0.1 | | | (1,036) | (965) | 7.4 | 5.8 | | Net operating income | | 1,411 | 1,553 | (9.2) | | | 2,687 | 2,591 | 3.7 | 2.1 | | Net loan-loss provisions | | 8 | (11) | — | | | (283) | (511) | (44.5) | (45.4) | | Other gains (losses) and provisions | | (2) | (61) | (97.2) | | | (473) | (429) | 10.3 | 8.6 | | Profit before tax | | 1,417 | 1,481 | (4.3) | | | 1,930 | 1,650 | 17.0 | 15.2 | | Tax on profit | | (405) | (478) | (15.2) | | | (402) | (431) | (6.7) | (8.2) | | Profit from continuing operations | | 1,011 | 1,003 | 0.8 | | | 1,528 | 1,219 | 25.4 | 23.4 | | Net profit from discontinued operations | | — | — | — | | | — | — | — | — | | Consolidated profit | | 1,011 | 1,003 | 0.8 | | | 1,528 | 1,219 | 25.4 | 23.4 | | Non-controlling interests | | (2) | (2) | (18.9) | | | (580) | (419) | 38.4 | 36.3 | | Profit attributable to the parent | | 1,010 | 1,001 | 0.9 | | | 949 | 800 | 18.5 | 16.7 | | | | | | | | | | | | | | Balance sheet | | | | | | | | | | | | Loans and advances to customers | | 41,260 | 38,410 | 7.4 | | | 40,203 | 38,042 | 5.7 | 4.3 | | Cash, central banks and credit institutions | | 2,744 | 3,873 | (29.2) | | | 13,002 | 10,283 | 26.4 | 24.8 | | Debt instruments | | 15,998 | 15,010 | 6.6 | | | 21,610 | 17,489 | 23.6 | 22.0 | | Other financial assets | | 1,243 | 1,129 | 10.1 | | | 635 | 493 | 28.7 | 27.0 | | Other asset accounts | | 1,090 | 1,109 | (1.7) | | | 2,736 | 1,961 | 39.6 | 37.8 | | Total assets | | 62,334 | 59,530 | 4.7 | | | 78,186 | 68,269 | 14.5 | 13.1 | | Customer deposits | | 40,576 | 38,304 | 5.9 | | | 54,627 | 50,331 | 8.5 | 7.1 | | Central banks and credit institutions | | 9,357 | 8,813 | 6.2 | | | 7,974 | 5,020 | 58.8 | 56.8 | | Marketable debt securities | | 5,809 | 4,973 | 16.8 | | | 3,819 | 2,744 | 39.1 | 37.4 | | Other financial liabilities | | 304 | 339 | (10.3) | | | 1,509 | 1,656 | (8.9) | (10.0) | | Other liabilities accounts | | 2,916 | 3,056 | (4.6) | | | 2,451 | 1,688 | 45.3 | 43.4 | | Total liabilities | | 58,961 | 55,485 | 6.3 | | | 70,380 | 61,439 | 14.6 | 13.1 | | Total equity | | 3,373 | 4,046 | (16.6) | | | 7,806 | 6,830 | 14.3 | 12.8 | | | | | | | | | | | | | | Memorandum items: | | | | | | | | | | | | Gross loans and advances to customers B | | 41,980 | 39,143 | 7.2 | | | 40,913 | 38,729 | 5.6 | 4.3 | | Customer funds | | 46,201 | 43,186 | 7.0 | | | 62,518 | 56,581 | 10.5 | 9.1 | | Customer deposits C | | 40,576 | 38,304 | 5.9 | | | 54,017 | 50,086 | 7.8 | 6.5 | | Mutual funds | | 5,625 | 4,882 | 15.2 | | | 8,501 | 6,495 | 30.9 | 29.2 | | | | | | | | | | | | | | Ratios (%), operating means and customers | | | | | | | | | | | | RoTE | | 30.8 | 25.4 | 5.4 | | | 23.8 | 20.2 | 3.6 | | | RoTE (post-AT1) | | 30.3 | 25.0 | 5.3 | | | 23.1 | 19.6 | 3.5 | | | Efficiency ratio | | 28.0 | 26.1 | 1.9 | | | 27.8 | 27.1 | 0.7 | | | NPL ratio | | 2.08 | 2.40 | (0.32) | | | 3.34 | 3.66 | (0.32) | | | NPL coverage ratio | | 83 | 79 | 3 | | | 65 | 62 | 3 | | | Number of branches | | 308 | 374 | (17.6) | | | 359 | 368 | (2.4) | | | Number of total customers (thousands) | | 2,971 | 2,989 | (0.6) | | | 6,024 | 5,979 | 0.8 | | | Number of active customers (thousands) | | 1,945 | 1,905 | 2.1 | | | 4,759 | 4,632 | 2.8 | | | | | | | | | | | | | | | A. Includes exchange differences. | | | | | | | | | | | | B. Excluding reverse repos. | | | | | | | | | | | | C. Excluding repos. | | | | | | | | | | | Annual report 2025495 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | EUR million | | | | | | | | | DCB Europe | | | | | Underlying income statement | | 2025 | 2024 | % | % excl. FX | | Net interest income | | 4,685 | 4,361 | 7.4 | 7.5 | | Net fee income | | 804 | 902 | (10.9) | (10.8) | | Gains (losses) on financial transactions A | | (39) | (24) | 60.8 | 61.9 | | Other operating income | | 474 | 440 | 7.7 | 8.1 | | Total income | | 5,925 | 5,679 | 4.3 | 4.4 | | Administrative expenses and amortizations | | (2,611) | (2,604) | 0.3 | 0.4 | | Net operating income | | 3,314 | 3,075 | 7.8 | 7.9 | | Net loan-loss provisions | | (1,363) | (1,209) | 12.7 | 12.9 | | Other gains (losses) and provisions | | (554) | (735) | (24.6) | (24.4) | | Profit before tax | | 1,398 | 1,131 | 23.6 | 23.4 | | Tax on profit | | (322) | (255) | 25.9 | 25.2 | | Profit from continuing operations | | 1,076 | 876 | 22.9 | 22.9 | | Net profit from discontinued operations | | — | — | — | — | | Consolidated profit | | 1,076 | 876 | 22.9 | 22.9 | | Non-controlling interests | | (304) | (234) | 30.3 | 30.3 | | Profit attributable to the parent | | 772 | 642 | 20.2 | 20.2 | | | | | | | | | Balance sheet | | | | | | | Loans and advances to customers | | 139,322 | 137,038 | 1.7 | 2.1 | | Cash, central banks and credit institutions | | 16,078 | 19,185 | (16.2) | (15.6) | | Debt instruments | | 8,510 | 6,310 | 34.9 | 34.6 | | Other financial assets | | 126 | 128 | (1.3) | (1.3) | | Other asset accounts | | 12,088 | 11,115 | 8.8 | 9.6 | | Total assets | | 176,125 | 173,775 | 1.4 | 1.8 | | Customer deposits | | 82,359 | 81,376 | 1.2 | 1.3 | | Central banks and credit institutions | | 26,820 | 28,120 | (4.6) | (2.5) | | Marketable debt securities | | 45,494 | 43,137 | 5.5 | 5.6 | | Other financial liabilities | | 2,014 | 1,918 | 5.0 | 5.2 | | Other liabilities accounts | | 6,208 | 5,714 | 8.7 | 9.0 | | Total liabilities | | 162,896 | 160,264 | 1.6 | 2.1 | | Total equity | | 13,229 | 13,512 | (2.1) | (1.6) | | | | | | | | | Memorandum items: | | | | | | | Gross loans and advances to customers B | | 142,477 | 139,927 | 1.8 | 2.3 | | Customer funds | | 87,559 | 85,876 | 2.0 | 2.0 | | Customer deposits C | | 82,359 | 81,376 | 1.2 | 1.3 | | Mutual funds | | 5,200 | 4,500 | 15.6 | 15.6 | | | | | | | | | Ratios (%), operating means and customers | | | | | | | RoTE | | 7.6 | 6.4 | 1.2 | | | RoTE (post-AT1) | | 6.7 | 5.5 | 1.2 | | | Efficiency ratio | | 44.1 | 45.9 | (1.8) | | | NPL ratio | | 2.53 | 2.50 | 0.03 | | | NPL coverage ratio | | 87 | 83 | 5 | | | Number of branches | | 298 | 326 | (8.6) | | | Number of total customers (thousands) | | 19,893 | 19,550 | 1.8 | | | | | | | | | | A. Includes exchange differences. | | | | | | | B. Excluding reverse repos. | | | | | | | C. Excluding repos. | | | | | | Annual report 2025496 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | EUR million | | | | | | | | | | | | | | | US | | | | | | Mexico | | | | | Underlying income statement | | 2025 | 2024 | % | % excl. FX | | | 2025 | 2024 | % | % excl. FX | | Net interest income | | 5,888 | 5,693 | 3.4 | 7.9 | | | 4,554 | 4,631 | (1.7) | 8.0 | | Net fee income | | 1,328 | 1,152 | 15.3 | 20.3 | | | 1,454 | 1,385 | 5.0 | 15.3 | | Gains (losses) on financial transactions A | | 547 | 371 | 47.7 | 54.1 | | | 427 | 396 | 7.7 | 18.3 | | Other operating income | | 165 | 365 | (54.7) | (52.7) | | | (130) | (133) | (2.5) | 7.1 | | Total income | | 7,929 | 7,580 | 4.6 | 9.1 | | | 6,305 | 6,278 | 0.4 | 10.3 | | Administrative expenses and amortizations | | (3,812) | (3,830) | (0.5) | 3.8 | | | (2,620) | (2,665) | (1.7) | 8.0 | | Net operating income | | 4,116 | 3,750 | 9.8 | 14.5 | | | 3,685 | 3,613 | 2.0 | 12.0 | | Net loan-loss provisions | | (2,244) | (2,507) | (10.5) | (6.6) | | | (1,239) | (1,277) | (3.0) | 6.5 | | Other gains (losses) and provisions | | (124) | (190) | (34.5) | (31.6) | | | (110) | (62) | 78.1 | 95.6 | | Profit before tax | | 1,748 | 1,053 | 66.0 | 73.2 | | | 2,336 | 2,274 | 2.7 | 12.8 | | Tax on profit | | (207) | 56 | — | — | | | (627) | (598) | 4.9 | 15.2 | | Profit from continuing operations | | 1,541 | 1,109 | 39.0 | 45.0 | | | 1,709 | 1,676 | 2.0 | 12.0 | | Net profit from discontinued operations | | — | — | — | — | | | — | — | — | — | | Consolidated profit | | 1,541 | 1,109 | 39.0 | 45.0 | | | 1,709 | 1,676 | 2.0 | 12.0 | | Non-controlling interests | | 0 | — | — | — | | | (4) | (5) | (9) | — | | Profit attributable to the parent | | 1,541 | 1,109 | 39.0 | 45.0 | | | 1,705 | 1,671 | 2.0 | 12.0 | | | | | | | | | | | | | | | Balance sheet | | | | | | | | | | | | | Loans and advances to customers | | 132,659 | 134,856 | (1.6) | 11.3 | | | 48,083 | 45,054 | 6.7 | 4.6 | | Cash, central banks and credit institutions | | 21,318 | 28,200 | (24.4) | (14.5) | | | 11,569 | 10,945 | 5.7 | 3.6 | | Debt instruments | | 38,411 | 27,042 | 42.0 | 60.7 | | | 32,066 | 30,092 | 6.6 | 4.4 | | Other financial assets | | 3,159 | 2,821 | 12.0 | 26.7 | | | 4,731 | 5,785 | (18.2) | (19.9) | | Other asset accounts | | 11,171 | 16,058 | (30.4) | (21.3) | | | 5,778 | 5,745 | 0.6 | (1.5) | | Total assets | | 206,718 | 208,978 | (1.1) | 11.9 | | | 102,227 | 97,621 | 4.7 | 2.6 | | Customer deposits | | 122,000 | 125,403 | (2.7) | 10.1 | | | 55,595 | 49,836 | 11.6 | 9.3 | | Central banks and credit institutions | | 34,934 | 26,794 | 30.4 | 47.5 | | | 17,984 | 17,260 | 4.2 | 2.1 | | Marketable debt securities | | 26,433 | 31,783 | (16.8) | (5.9) | | | 9,316 | 9,632 | (3.3) | (5.2) | | Other financial liabilities | | 6,255 | 5,223 | 19.8 | 35.5 | | | 7,586 | 9,640 | (21.3) | (22.9) | | Other liabilities accounts | | 3,085 | 3,683 | (16.2) | (5.2) | | | 3,258 | 3,115 | 4.6 | 2.5 | | Total liabilities | | 192,707 | 192,886 | (0.1) | 13.0 | | | 93,740 | 89,483 | 4.8 | 2.7 | | Total equity | | 14,011 | 16,091 | (12.9) | (1.5) | | | 8,487 | 8,138 | 4.3 | 2.2 | | | | | | | | | | | | | | | Memorandum items: | | | | | | | | | | | | | Gross loans and advances to customers B | | 108,950 | 117,511 | (7.3) | 4.9 | | | 49,442 | 44,715 | 10.6 | 8.4 | | Customer funds | | 103,178 | 108,246 | (4.7) | 7.9 | | | 68,201 | 61,160 | 11.5 | 9.3 | | Customer deposits C | | 87,686 | 93,545 | (6.3) | 6.1 | | | 45,498 | 41,528 | 9.6 | 7.4 | | Mutual funds | | 15,492 | 14,702 | 5.4 | 19.2 | | | 22,703 | 19,632 | 15.6 | 13.3 | | | | | | | | | | | | | | | Ratios (%), operating means and customers | | | | | | | | | | | | | RoTE | | 10.8 | 7.5 | 3.2 | | | | 22.4 | 20.0 | 2.3 | | | RoTE (post-AT1) | | 10.2 | 6.9 | 3.2 | | | | 22.0 | 19.6 | 2.3 | | | Efficiency ratio | | 48.1 | 50.5 | (2.4) | | | | 41.6 | 42.5 | (0.9) | | | NPL ratio | | 4.85 | 4.72 | 0.14 | | | | 2.65 | 2.71 | (0.05) | | | NPL coverage ratio | | 55 | 64 | (9) | | | | 105 | 100 | 4 | | | Number of branches | | 376 | 405 | (7.2) | | | | 1,314 | 1,356 | (3.1) | | | Number of total customers (thousands) | | 4,369 | 4,474 | (2.4) | | | | 22,577 | 21,289 | 6.1 | | | Number of active customers (thousands) | | 4,169 | 4,308 | (3.2) | | | | 11,976 | 10,871 | 10.2 | | | | | | | | | | | | | | | | A. Includes exchange differences. | | | | | | | | | | | | | B. Excluding reverse repos. | | | | | | | | | | | | | C. Excluding repos. | | | | | | | | | | | | Annual report 2025497 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | EUR million | | | | | | | | | | | | | | | Brazil | | | | | | Chile | | | | | Underlying income statement | | 2025 | 2024 | % | % excl. FX | | | 2025 | 2024 | % | % excl. FX | | Net interest income | | 9,380 | 10,121 | (7.3) | 0.6 | | | 1,917 | 1,822 | 5.2 | 10.7 | | Net fee income | | 3,193 | 3,414 | (6.5) | 1.5 | | | 582 | 551 | 5.8 | 11.2 | | Gains (losses) on financial transactions A | | (64) | (37) | 71.7 | 86.3 | | | 230 | 238 | (3.4) | 1.6 | | Other operating income | | 93 | 39 | 139.5 | 160.0 | | | (15) | (18) | (16.4) | (12.1) | | Total income | | 12,602 | 13,536 | (6.9) | 1.0 | | | 2,714 | 2,592 | 4.7 | 10.1 | | Administrative expenses and amortizations | | (4,109) | (4,352) | (5.6) | 2.5 | | | (912) | (933) | (2.3) | 2.7 | | Net operating income | | 8,493 | 9,184 | (7.5) | 0.4 | | | 1,802 | 1,659 | 8.7 | 14.3 | | Net loan-loss provisions | | (4,409) | (4,487) | (1.7) | 6.6 | | | (531) | (497) | 6.9 | 12.4 | | Other gains (losses) and provisions | | (859) | (867) | (0.9) | 7.5 | | | (39) | (51) | (23.8) | (19.8) | | Profit before tax | | 3,224 | 3,830 | (15.8) | (8.6) | | | 1,232 | 1,111 | 11.0 | 16.7 | | Tax on profit | | (836) | (1,165) | (28.2) | (22.1) | | | (189) | (211) | (10.5) | (5.9) | | Profit from continuing operations | | 2,388 | 2,665 | (10.4) | (2.8) | | | 1,043 | 899 | 16.0 | 22.0 | | Net profit from discontinued operations | | — | — | — | — | | | — | — | — | — | | Consolidated profit | | 2,388 | 2,665 | (10.4) | (2.8) | | | 1,043 | 899 | 16.0 | 22.0 | | Non-controlling interests | | (220) | (243) | (9.3) | (1.6) | | | (314) | (271) | 16.0 | 22.0 | | Profit attributable to the parent | | 2,168 | 2,422 | (10.5) | (2.9) | | | 729 | 629 | 16.0 | 22.0 | | | | | | | | | | | | | | | Balance sheet | | | | | | | | | | | | | Loans and advances to customers | | 87,653 | 88,620 | (1.1) | (0.6) | | | 39,924 | 40,332 | (1.0) | 1.6 | | Cash, central banks and credit institutions | | 49,450 | 46,745 | 5.8 | 6.3 | | | 5,218 | 5,759 | (9.4) | (7.0) | | Debt instruments | | 46,658 | 45,670 | 2.2 | 2.6 | | | 9,385 | 7,993 | 17.4 | 20.5 | | Other financial assets | | 11,772 | 10,632 | 10.7 | 11.2 | | | 11,489 | 13,554 | (15.2) | (13.0) | | Other asset accounts | | 13,919 | 13,844 | 0.5 | 1.0 | | | 2,189 | 2,796 | (21.7) | (19.7) | | Total assets | | 209,453 | 205,510 | 1.9 | 2.4 | | | 68,205 | 70,434 | (3.2) | (0.6) | | Customer deposits | | 92,256 | 93,994 | (1.8) | (1.4) | | | 29,503 | 30,181 | (2.2) | 0.3 | | Central banks and credit institutions | | 32,377 | 30,878 | 4.9 | 5.3 | | | 8,778 | 8,133 | 7.9 | 10.8 | | Marketable debt securities | | 29,161 | 25,351 | 15.0 | 15.6 | | | 9,703 | 10,403 | (6.7) | (4.3) | | Other financial liabilities | | 33,757 | 34,215 | (1.3) | (0.9) | | | 12,322 | 14,323 | (14.0) | (11.7) | | Other liabilities accounts | | 5,829 | 5,582 | 4.4 | 4.9 | | | 2,299 | 1,942 | 18.4 | 21.5 | | Total liabilities | | 193,380 | 190,020 | 1.8 | 2.2 | | | 62,604 | 64,983 | (3.7) | (1.1) | | Total equity | | 16,073 | 15,490 | 3.8 | 4.2 | | | 5,601 | 5,451 | 2.8 | 5.5 | | | | | | | | | | | | | | | Memorandum items: | | | | | | | | | | | | | Gross loans and advances to customers B | | 93,030 | 93,785 | (0.8) | (0.3) | | | 40,986 | 41,405 | (1.0) | 1.6 | | Customer funds | | 132,580 | 129,881 | 2.1 | 2.6 | | | 42,256 | 43,383 | (2.6) | 0.0 | | Customer deposits C | | 80,449 | 81,378 | (1.1) | (0.7) | | | 28,293 | 30,060 | (5.9) | (3.4) | | Mutual funds | | 52,132 | 48,503 | 7.5 | 8.0 | | | 13,963 | 13,324 | 4.8 | 7.6 | | | | | | | | | | | | | | | Ratios (%), operating means and customers | | | | | | | | | | | | | RoTE | | 16.0 | 17.5 | (1.5) | | | | 20.5 | 17.0 | 3.4 | | | RoTE (post-AT1) | | 15.3 | 16.8 | (1.5) | | | | 19.7 | 16.3 | 3.4 | | | Efficiency ratio | | 32.6 | 32.1 | 0.5 | | | | 33.6 | 36.0 | (2.4) | | | NPL ratio | | 6.82 | 6.14 | 0.68 | | | | 5.73 | 5.37 | 0.36 | | | NPL coverage ratio | | 83 | 83 | 1 | | | | 48 | 50 | (2) | | | Number of branches | | 1,618 | 2,202 | (26.5) | | | | 228 | 237 | (3.8) | | | Number of total customers (thousands) | | 73,948 | 69,455 | 6.5 | | | | 4,608 | 4,311 | 6.9 | | | Number of active customers (thousands) | | 33,966 | 33,123 | 2.5 | | | | 2,693 | 2,556 | 5.4 | | | | | | | | | | | | | | | | A. Includes exchange differences. | | | | | | | | | | | | | B. Excluding reverse repos. | | | | | | | | | | | | | C. Excluding repos. | | | | | | | | | | | | Annual report 2025498 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | EUR million | | | | | | | | | | | | | | Argentina | | | | | Rest of the Group | | | | | Underlying income statement | | 2025 | 2024 | % | | | 2025 | 2024 | % | % excl. FX | | Net interest income | | 1,727 | 2,919 | (40.8) | | | 1,080 | 832 | 29.8 | 36.1 | | Net fee income | | 788 | 602 | 30.9 | | | 908 | 723 | 25.6 | 28.8 | | Gains (losses) on financial transactions A | | 229 | 229 | 0.1 | | | 296 | 326 | (9.0) | (6.1) | | Other operating income | | (510) | (1,263) | (59.6) | | | 25 | 8 | 218.6 | 173.0 | | Total income | | 2,235 | 2,487 | (10.2) | | | 2,309 | 1,888 | 22.3 | 26.6 | | Administrative expenses and amortizations | | (964) | (1,022) | (5.7) | | | (1,656) | (1,547) | 7.0 | 9.3 | | Net operating income | | 1,271 | 1,465 | (13.3) | | | 654 | 341 | 91.6 | 112.3 | | Net loan-loss provisions | | (574) | (284) | 101.8 | | | (260) | (230) | 13.0 | 17.7 | | Other gains (losses) and provisions | | (46) | (353) | (86.9) | | | (65) | (359) | (81.9) | (81.8) | | Profit before tax | | 650 | 827 | (21.4) | | | 329 | (248) | 0.0 | 0.0 | | Tax on profit | | (216) | (161) | 34.6 | | | (29) | (36) | (20.6) | (9.4) | | Profit from continuing operations | | 434 | 666 | (34.9) | | | 300 | (284) | 0.0 | 0.0 | | Net profit from discontinued operations | | — | — | — | | | — | — | — | — | | Consolidated profit | | 434 | 666 | (34.9) | | | 300 | (284) | 0.0 | 0.0 | | Non-controlling interests | | (1) | (1) | (39.8) | | | 0 | 4 | (98.4) | (98.6) | | Profit attributable to the parent | | 433 | 665 | (34.9) | | | 300 | (280) | 0.0 | 0.0 | | | | | | | | | | | | | | Balance sheet | | | | | | | | | | | | Loans and advances to customers | | 8,032 | 7,684 | 4.5 | | | 25,315 | 24,905 | 1.6 | 8.2 | | Cash, central banks and credit institutions | | 3,724 | 4,901 | (24.0) | | | 12,912 | 8,178 | 57.9 | 64.7 | | Debt instruments | | 2,230 | 2,654 | (16.0) | | | 4,452 | 10,677 | (58.3) | (57.8) | | Other financial assets | | 16 | 23 | (28.5) | | | 2,387 | 3,041 | (21.5) | (16.9) | | Other asset accounts | | 1,078 | 978 | 10.2 | | | 3,157 | 2,930 | 7.7 | 8.1 | | Total assets | | 15,080 | 16,240 | (7.1) | | | 48,222 | 49,732 | (3.0) | 1.3 | | Customer deposits | | 9,959 | 11,293 | (11.8) | | | 26,913 | 19,955 | 34.9 | 42.5 | | Central banks and credit institutions | | 685 | 852 | (19.5) | | | 8,249 | 19,309 | (57.3) | (55.8) | | Marketable debt securities | | 258 | 158 | 63.4 | | | 4,508 | 898 | 401.8 | 408.3 | | Other financial liabilities | | 1,060 | 968 | 9.5 | | | 2,402 | 2,694 | (10.9) | (4.5) | | Other liabilities accounts | | 547 | 476 | 14.9 | | | 1,543 | 1,514 | 1.9 | 2.3 | | Total liabilities | | 12,510 | 13,746 | (9.0) | | | 43,614 | 44,371 | (1.7) | 2.7 | | Total equity | | 2,570 | 2,494 | 3.1 | | | 4,608 | 5,360 | (14.0) | (10.3) | | | | | | | | | | | | | | Memorandum items: | | | | | | | | | | | | Gross loans and advances to customers B | | 8,611 | 7,938 | 8.5 | | | 25,796 | 25,285 | 2.0 | 8.5 | | Customer funds | | 15,894 | 17,047 | (6.8) | | | 45,916 | 34,204 | 34.2 | 40.8 | | Customer deposits C | | 9,959 | 11,293 | (11.8) | | | 26,691 | 19,527 | 36.7 | 44.6 | | Mutual funds | | 5,934 | 5,754 | 3.1 | | | 19,225 | 14,677 | 31.0 | 35.9 | | | | | | | | | | | | | | Ratios (%), operating means and customers | | | | | | | | | | | | RoTE | | 20.9 | 34.8 | (13.9) | | | | | | | | RoTE (post-AT1) | | 20.2 | 34.5 | (14.3) | | | | | | | | Efficiency ratio | | 43.1 | 41.1 | 2.0 | | | | | | | | NPL ratio | | 7.68 | 2.06 | 5.62 | | | | | | | | NPL coverage ratio | | 90 | 177 | (87) | | | | | | | | Number of branches D | | 391 | 409 | (4.4) | | | | | | | | Number of total customers (thousands) | | 5,412 | 5,117 | 5.8 | | | | | | | | Number of active customers (thousands) | | 3,772 | 3,674 | 2.7 | | | | | | | | | | | | | | | | | | | | A. Includes exchange differences. | | | | | | | | | | | | B. Excluding reverse repos. | | | | | | | | | | | | C. Excluding repos. | | | | | | | | | | | | D. In Argentina, we have included the CartaSur points of sale and the banking service points in 2025 and 2024 figures. | | | | | | | | | | | Annual report 2025499 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 6. Alternative performance measures (APMs) In addition to the financial information prepared under IFRS, this consolidated directors’ report contains financial measures that constitute alternative performance measures (APMs) to comply with the guidelines on alternative performance measures issued by the European Securities and Markets Authority on 5 October 2015 and non-IFRS measures. The financial measures contained in this consolidated directors’ report that qualify as APMs and non-IFRS measures have been calculated using our financial information but are not defined or detailed in the applicable financial information framework or under IFRS and therefore have neither been audited nor are susceptible to being fully audited. We use these APMs and non-IFRS measures when planning, monitoring and evaluating our performance. We consider these APMs and non-IFRS financial measures to be useful metrics for management and investors to facilitate operating performance comparisons from period to period. While we believe that these APMs and non-IFRS financial measures are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant as a substitute of IFRS measures. In addition, the way in which Santander defines and calculates these APMs and non-IFRS measures may differ from the calculations used by other companies with similar measures and, therefore, may not be comparable. Additional APMs to those included in this section are presented in section [SN 9. 'Alternative Performance Measures'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_268) of the 'Sustainability statement' chapter. The APMs and non-IFRS measures we use in this document can be categorized as follows: #### Underlying results In addition to IFRS results measures, we present some results measures which are non-IFRS and which we refer to as underlying measures. These measures allow, in our view, a better year-on- year comparability given that they exclude items outside the ordinary performance of our business (e.g. capital gains, write- downs, impairment of goodwill) or certain line items have been reclassified in the underlying ('adjusted') income statement, as their impact on profit is zero, to better understand the trends in the business. Similarly, we report some line items, such as net operating income, gains on financial transactions, net loan-loss provisions and other results and provisions which, despite not coinciding exactly with the statutory line items, can be derived directly from the consolidated financial statements prepared in accordance with IFRS. For further information, see section [4.2 'Results'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_676) in this chapter. In addition, in section [5. 'Financial information by segment'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_691) covering the primary and secondary segments, results are presented only on an underlying basis in accordance with IFRS 8 and is the information used by the Group’s governance bodies. A reconciliation on an aggregate basis to our IFRS consolidated results as well as the definitions of the aforementioned line items can be found in [note 52.c](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1237) to our consolidated financial statements. As a result of the Poland disposal and in accordance with IFRS 5 requirements, in the statutory income statement, the results associated with the business subject to the Poland disposal are reported under a single line item in the consolidated income statement — 'profit or loss after tax from discontinued operations' — for 2025, 2024 and 2023. However, in the underlying income statement, the results from Poland continue to be reported line by line and disaggregated, as they were in previous disclosures, given the management of Santander Poland remained unchanged until the Poland disposal was completed in January 2026. This reporting approach is consistent with the information used internally in management reporting, as well as with other public Group disclosures. Annual report 2025500 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Ratios | | | | | --- | --- | --- | | | | | | | | | | | All profitability, efficiency, credit quality and other metrics included in this 'Alternative performance measures' section have been calculated including Poland, as they were in disclosures prior to the announcement of the operation given the management of Santander Poland remained unchanged until the Poland disposal was completed in January 2026. This reporting approach is consistent with the information used internally in management reporting, as well as with other public Group disclosures. However, if we were to exclude Poland, the Group's main management ratios would not be materially affected. | | | | | | #### Profitability and efficiency ratios The purpose of the profitability ratios is to measure the ratio of profit to equity, to tangible equity, to assets and to risk-weighted assets. The efficiency ratio measures how much general administrative expenses (personnel and other) and amortization costs are needed to generate revenue. Additionally, goodwill adjustments have been removed from the RoTE numerator as, since they are not considered in the denominator, we believe this calculation is more correct. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Ratio | | Formula | | Relevance of the metric | | RoE | | Profit attributable to the parent | | This ratio measures the return that shareholders obtain on the funds invested in the bank and as such measures the bank’s ability to pay shareholders. | | (Return on Equity) | | Average stockholders’ equity A (excl. minority interests) | | | RoTE | | Profit attributable to the parent B | | This is used to evaluate the profitability of the company as a percentage of its tangible equity. It is measured as the return that shareholders receive as a percentage of the funds invested in the bank less intangible assets. | | (Return on Tangible Equity) | | Average stockholders’ equity A (excl. minority interests) - intangible assets | | | RoTE (post-AT1) | | Profit attributable to the parent minus AT1 costs B | | As with RoTE, this indicator is used to assess the profitability of a company as a percentage of its tangible equity, but the cost of AT1 issuances is deducted from the numerator. This is the definition of RoTE that is commonly used as a measure of profitability over tangible equity. | | (Return on tangible equity) | | Average stockholders' equity A (excl. minority interests) - intangible assets | | | RoA | | Consolidated profit | | This metric measures the profitability of a company as a percentage of its total assets. It is an indicator that reflects the efficiency of the bank’s total assets in generating profit over a given period. | | (Return on Assets) | | Average total assets | | | RoRWA | | Consolidated profit | | The return adjusted for risk is a derivative of the RoA metric. The difference is that RoRWA measures profit in relation to the bank’s risk-weighted assets. | | (Return on Risk-Weighted Assets) | | Average risk-weighted assets | | | RoRAC | | Underlying consolidated profit | | This is the return on economic capital required internally (necessary to support all risks inherent in our activity). | | (Return on Risk-Adjusted Capital) | | Average economic capital | | | Economic Value Added | | Underlying consolidated profit – (average economic capital x cost of capital) | | Economic value added is the profit generated in excess of the cost of economic capital employed. This measures risk- adjusted returns in absolute terms, complementing the RoRAC approach. | | Efficiency | | Operating expenses C | | One of the most commonly used indicators when comparing productivity of different financial entities. It measures the amount of resources used to generate the bank’s total income. | | (Cost-to-income) | | Total income | | A. Stockholders’ equity = Capital and Reserves + Accumulated other comprehensive income + Profit attributable to the parent + Dividends. B. Excluding the adjustment to the valuation of goodwill,  since they are not considered in the denominator, we believe this calculation is more correct. C. Operating expenses = Administrative expenses + amortizations. Annual report 2025501 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | --- | --- | --- | --- | | | | | | | Profitability and efficiency A (EUR million and %) | | | | | | 2025 | 2024 | 2023 | | RoE | 13.9% | 13.0% | 11.9% | | Profit attributable to the parent | 14,101 | 12,574 | 11,076 | | Average stockholders' equity (excluding minority interests) | 101,497 | 96,744 | 93,035 | | | | | | | RoTE | 17.1% | 16.3% | 15.1% | | Profit attributable to the parent | 14,101 | 12,574 | 11,076 | | (-) Goodwill impairment | (4) | (4) | (20) | | Profit attributable to the parent (excluding goodwill impairment) | 14,105 | 12,578 | 11,096 | | Average stockholders' equity (excluding minority interests) | 101,497 | 96,744 | 93,035 | | (-) Average intangible assets | 18,865 | 19,428 | 19,361 | | Average stockholders' equity (excl. minority interests) - intangible assets | 82,631 | 77,316 | 73,675 | | | | | | | RoTE post-AT1 | 16.3% | 15.5% | 14.4% | | Profit attributable to the parent | 14,101 | 12,574 | 11,076 | | (-) AT1 costs | 622 | 620 | 492 | | Profit attributable to the parent excluding AT1 costs | 13,479 | 11,955 | 10,583 | | (-) Goodwill impairment | (4) | (4) | (20) | | Profit attributable to the parent minus AT1 costs (excluding goodwill impairment) | 13,483 | 11,958 | 10,603 | | Average stockholders' equity (excluding minority interests) | 101,497 | 96,744 | 93,035 | | (-) Average intangible assets | 18,865 | 19,428 | 19,361 | | Average stockholders' equity (excl. minority interests) - intangible assets | 82,631 | 77,316 | 73,675 | | | | | | | RoA | 0.84% | 0.76% | 0.69% | | Consolidated profit | 15,500 | 13,744 | 12,183 | | Average total assets | 1,843,112 | 1,803,272 | 1,773,103 | | | | | | | RoRWA | 2.44% | 2.18% | 1.96% | | Consolidated profit | 15,500 | 13,744 | 12,209 | | Average risk-weighted assets B | 634,020 | 630,494 | 624,031 | | | | | | | RoRAC | 19.89% | 17.52% | 15.30% | | Consolidated profit | 15,500 | 13,744 | 12,209 | | (-) Adjustments to consolidated profit for items outside ordinary course of businesses | (26) | — | 26 | | Underlying consolidated profit | 15,526 | 13,744 | 12,183 | | Average economic capital | 78,052 | 78,430 | 79,605 | | | | | | | Economic value added | 6,160 | 4,332 | 3,259 | | Underlying consolidated profit | 15,526 | 13,744 | 12,183 | | (-) Average economic capital x cost of capital | (9,366) | (9,412) | (8,924) | | Average economic capital | 78,052 | 78,430 | 79,605 | | Cost of capital | 12.00% | 12.00% | 11.21% | | | | | | | Efficiency ratio | 41.2% | 41.8% | 44.1% | | Underlying operating expenses | 25,725 | 26,034 | 25,425 | | Operating expenses | 24,711 | 25,149 | 24,632 | | Adjustments to operating expenses for items outside ordinary course of businesses | 1,014 | 885 | 793 | | Underlying total income | 62,390 | 62,211 | 57,647 | | Total income | 58,670 | 58,380 | 54,251 | | Adjustments to total income for items outside ordinary course of businesses | 3,720 | 3,831 | 3,396 | A. Averages included in the RoE, RoTE, RoTE (post-AT1), RoA and RoRWA denominators are calculated using the monthly average over the period, which we believe should not differ materially from using daily balances. B. The risk-weighted assets included in the denominator of the RoRWA metric are calculated in line with the criteria laid out in the CRR (Capital Requirements Regulation). Annual report 2025502 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Ratio | | Formula | | Relevance of the metric | | Global business RoTE | | Profit attributable to the parent excluding goodwill impairment | | This indicator is used to evaluate the profitability of the company as a percentage of its tangible equity. It's measured as the return that shareholders receive as a percentage of the funds invested in the entity less intangible assets. | | | Average stockholders' equity (excl. minority interests) - intangible assets A | | | Global business and country RoTE (post- AT1) | | Profit attributable to the parent minus AT1 costsB (excluding goodwill impairment) | | As with RoTE, this indicator is used to assess the profitability of a company as a percentage of its tangible equity, but the cost of AT1 issuances is deducted from the numerator. This is the definition of RoTE that is commonly used as a measure of profitability over tangible equity. | | | Average stockholders' equity(excl. minority interests) - intangible assets A | | A. For global businesses, tangible equity is allocated according to RWA consumption. B. For both global businesses and countries, AT1 costs are allocated according to RWA consumption. | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | RoTE (EUR million and %) | | | | | | | | | | 2025 | | | | 2024 | | | | | % | Numerator | Denominator | | % | Numerator | Denominator | | Retail & Commercial Banking | 18.5 | 7,670 | 41,568 | | 18.9 | 7,249 | 38,280 | | Digital Consumer Bank | 9.4 | 1,741 | 18,532 | | 9.8 | 1,659 | 16,931 | | Corporate & Investment Banking | 19.8 | 2,834 | 14,297 | | 18.0 | 2,747 | 15,224 | | Wealth Management & Insurance | 69.2 | 2,063 | 2,980 | | 77.6 | 1,671 | 2,153 | | Payments | 28.8 | 883 | 3,068 | | 14.1 | 405 | 2,883 | | PagoNxt | | | | | | | | | Cards | 30.7 | 787 | 2,562 | | 29.2 | 703 | 2,405 | | | | | | | | | | | Spain | 25.1 | 4,272 | 17,009 | | 21.7 | 3,762 | 17,347 | | UK | 10.7 | 1,307 | 12,200 | | 11.1 | 1,306 | 11,781 | | Portugal | 30.8 | 1,010 | 3,282 | | 25.4 | 1,001 | 3,948 | | Poland | 23.8 | 949 | 3,984 | | 20.2 | 800 | 3,956 | | DCB Europe | 7.6 | 772 | 10,212 | | 6.4 | 642 | 10,055 | | US | 10.8 | 1,541 | 14,311 | | 7.5 | 1,109 | 14,742 | | Mexico | 22.4 | 1,705 | 7,616 | | 20.0 | 1,671 | 8,343 | | Brazil | 16.0 | 2,169 | 13,545 | | 17.5 | 2,424 | 13,853 | | Chile | 20.5 | 729 | 3,567 | | 17.0 | 629 | 3,693 | | Argentina | 20.9 | 433 | 2,072 | | 34.8 | 665 | 1,909 | Numerator: profit attributable to the parent (excluding the adjustment to the valuation of goodwill). Denominator: average stockholders' equity (excluding minority interests) - intangible assets. PagoNxt's RoTE is not provided as we do not consider it a relevant metric to measure performance in this type of business. | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | RoTE (post-AT1) (EUR million and %) | | | | | | | | | | 2025 | | | | 2024 | | | | | % | Numerator | Denominator | | % | Numerator | Denominator | | Retail & Commercial Banking | 17.7 | 7,375 | 41,568 | | 18.2 | 6,959 | 38,280 | | Digital Consumer Bank | 8.6 | 1,585 | 18,532 | | 8.9 | 1,506 | 16,931 | | Corporate & Investment Banking | 19.1 | 2,728 | 14,297 | | 17.3 | 2,627 | 15,224 | | Wealth Management & Insurance | 68.5 | 2,041 | 2,980 | | 76.8 | 1,654 | 2,153 | | Payments | 28.0 | 860 | 3,068 | | 13.3 | 385 | 2,883 | | PagoNxt | 0.0 | 0 | 0 | | 0.0 | 0 | 0 | | Cards | 30.1 | 770 | 2,562 | | 28.5 | 686 | 2,405 | | | | | | | | | | | Spain | 24.3 | 4,133 | 17,009 | | 20.9 | 3,620 | 17,347 | | UK | 10.2 | 1,248 | 12,200 | | 10.6 | 1,247 | 11,781 | | Portugal | 30.3 | 994 | 3,282 | | 25.0 | 985 | 3,948 | | Poland | 23.1 | 921 | 3,984 | | 19.6 | 775 | 3,956 | | DCB Europe | 6.7 | 685 | 10,212 | | 5.5 | 556 | 10,055 | | US | 10.2 | 1,454 | 14,311 | | 6.9 | 1,024 | 14,742 | | Mexico | 22.0 | 1,674 | 7,616 | | 19.6 | 1,638 | 8,343 | | Brazil | 15.3 | 2,074 | 13,545 | | 16.8 | 2,323 | 13,853 | | Chile | 19.7 | 703 | 3,567 | | 16.3 | 602 | 3,693 | | Argentina | 20.2 | 419 | 2,072 | | 34.5 | 658 | 1,909 | Numerator: profit attributable to the parent minus AT1 costs (excluding goodwill impairment). Denominator: average stockholders' equity (excluding minority interests) - intangible assets. PagoNxt's RoTE is not provided as we do not consider it a relevant metric to measure performance in this type of business. Annual report 2025503 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Efficiency ratio (EUR million and %) | | | | | | | | | | 2025 | | | | 2024 | | | | | % | Numerator | Denominator | | % | Numerator | Denominator | | Retail & Commercial Banking | 39.4 | 12,314 | 31,216 | | 39.5 | 12,796 | 32,374 | | Digital Consumer Bank | 40.6 | 5,287 | 13,015 | | 40.1 | 5,183 | 12,912 | | Corporate & Investment Banking | 45.5 | 3,866 | 8,488 | | 45.5 | 3,794 | 8,338 | | Wealth Management & Insurance | 35.3 | 1,497 | 4,239 | | 38.2 | 1,452 | 3,803 | | Payments | 39.2 | 2,360 | 6,013 | | 44.5 | 2,430 | 5,459 | | PagoNxt | 82.9 | 1,138 | 1,373 | | 93.6 | 1,160 | 1,240 | | Cards | 26.3 | 1,221 | 4,640 | | 30.1 | 1,270 | 4,220 | | | | | | | | | | | Spain | 35.7 | 4,284 | 11,990 | | 35.7 | 4,271 | 11,974 | | UK | 52.5 | 2,771 | 5,280 | | 55.9 | 2,918 | 5,216 | | Portugal | 28.0 | 548 | 1,959 | | 26.1 | 548 | 2,100 | | Poland | 27.8 | 1,036 | 3,724 | | 27.1 | 965 | 3,555 | | DCB Europe | 44.1 | 2,611 | 5,925 | | 45.9 | 2,604 | 5,679 | | US | 48.1 | 3,812 | 7,929 | | 50.5 | 3,830 | 7,580 | | Mexico | 41.6 | 2,620 | 6,305 | | 42.5 | 2,665 | 6,278 | | Brazil | 32.6 | 4,109 | 12,602 | | 32.1 | 4,352 | 13,536 | | Chile | 33.6 | 912 | 2,714 | | 36.0 | 933 | 2,592 | | Argentina | 43.1 | 964 | 2,235 | | 41.1 | 1,022 | 2,487 | Numerator: underlying operating expenses. Denominator: underlying total income. #### Credit risk indicators The credit risk indicators measure the quality of the credit portfolio and the percentage of non-performing loans covered by provisions. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Ratio | | Formula | | Relevance of the metric | | NPL ratio (Non-performing loans ratio) | | Credit impaired customer loans and advances, guarantees and undrawn balances | | The NPL ratio is an important variable regarding financial institutions' activity since it gives an indication of the level of credit risk the entities are exposed to. It calculates risks that are, in accounting terms, declared to be credit impaired as a percentage of the total outstanding amount of customer credit and contingent liabilities. | | | Total Risk A | | | NPL coverage ratio | | Total allowances to cover impairment losses on customer loans and advances, guarantees and undrawn balances | | The NPL coverage ratio is a fundamental metric in the financial sector. It reflects the level of provisions as a percentage of the credit impaired assets. Therefore, it is a good indicator of the entity's solvency against customer defaults both present and future. | | | Credit impaired customer loans and advances, guarantees and undrawn balances | | | Cost of risk | | Allowances for loan-loss provisions over the last 12 months | | This ratio quantifies loan-loss provisions arising from credit risk over a defined period of time for a given loan portfolio. As such, it acts as an indicator of credit quality. | | | Average loans and advances to customers over the last 12 months | | A. Total risk = non-impaired and impaired customer loans and advances and guarantees + impaired undrawn customer balances. Annual report 2025504 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | --- | --- | --- | --- | | | | | | | Credit risk (I) (EUR million and %) | | | | | | Dec-25 | Dec-24 | Dec-23 | | NPL ratio | 2.91% | 3.05% | 3.14% | | Credit impaired customer loans and advances, guarantees and undrawn balances | 34,393 | 35,265 | 35,620 | | Gross loans and advances to customers registered under the headings 'financial assets measured at amortized cost' and 'financial assets designated at fair value through profit or loss' classified in stage 3 (OCI), excluding POCI (Purchased or Originated Credit Impaired) | 32,887 | 33,568 | 33,821 | | POCI exposure (Purchased or Originated Credit Impaired) that is additionally impaired | 144 | 163 | 273 | | Customer guarantees and undrawn balances classified in stage 3 | 1,345 | 1,521 | 1,517 | | Doubtful exposure of loans and advances to customers at fair value through profit or loss | 17 | 13 | 9 | | Total risk | 1,181,945 | 1,157,274 | 1,133,898 | | Impaired and non-impaired gross loans and advances to customers | 1,098,453 | 1,076,195 | 1,059,135 | | Impaired and non-impaired customer guarantees and impaired undrawn customer balances | 83,492 | 81,079 | 74,763 | | | | | | | --- | --- | --- | --- | | | | | | | Credit risk (II) (EUR million and %) | | | | | | Dec-25 | Dec-24 | Dec-23 | | NPL coverage ratio | 66.5% | 64.8% | 65.9% | | Total allowances to cover impairment losses on customer loans and advances, guarantees and undrawn balances | 22,869 | 22,835 | 23,490 | | Total allowances to cover impairment losses on loans and advances to customers measured at amortized cost and designated at fair value through OCI | 22,138 | 22,125 | 22,788 | | Total allowances to cover impairment losses on customer guarantees and undrawn balances | 731 | 710 | 702 | | Credit impaired customer loans and advances, guarantees and undrawn balances | 34,393 | 35,265 | 35,620 | | Gross loans and advances to customers registered under the headings 'financial assets measured at amortized cost' and 'financial assets designated at fair value through profit or loss' classified in stage 3 (OCI), excluding POCI (Purchased or Originated Credit Impaired) | 32,887 | 33,568 | 33,821 | | POCI exposure (Purchased or Originated Credit Impaired) that is additionally impaired | 144 | 163 | 273 | | Customer guarantees and undrawn balances classified in stage 3 | 1,345 | 1,521 | 1,517 | | Doubtful exposure of loans and advances to customers at fair value through profit or loss | 17 | 13 | 9 | | | | | | | Cost of risk | 1.15% | 1.15% | 1.18% | | Underlying allowances for loan-loss provisions over the last 12 months | 12,411 | 12,333 | 12,458 | | Allowances for loan-loss provisions over the last 12 months | 12,596 | 12,183 | 12,260 | | Adjustments to loan-loss provisions for items outside ordinary course of businesses | (185) | 150 | 198 | | Average loans and advances to customers over the last 12 months | 1,082,829 | 1,075,821 | 1,059,566 | Annual report 2025505 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | NPL ratio (EUR million and %) | | | | | | | | | | Dec-25 | | | | Dec-24 | | | | | % | Numerator | Denominator | | % | Numerator | Denominator | | Retail & Commercial Banking | 2.97 | 18,998 | 640,483 | | 3.18 | 20,441 | 643,530 | | Digital Consumer Bank | 5.32 | 11,351 | 213,525 | | 5.07 | 10,993 | 216,616 | | Corporate & Investment Banking | 0.69 | 1,842 | 267,492 | | 0.83 | 2,002 | 241,061 | | Wealth Management & Insurance | 0.86 | 235 | 27,395 | | 0.93 | 237 | 25,303 | | Payments | 6.35 | 1,695 | 26,695 | | 5.20 | 1,290 | 24,804 | | PagoNxt | | | | | | | | | Cards | 6.43 | 1,652 | 25,693 | | 5.31 | 1,259 | 23,716 | | | | | | | | | | | Spain | 1.96 | 5,915 | 302,271 | | 2.68 | 7,672 | 285,883 | | UK | 1.08 | 2,645 | 244,303 | | 1.33 | 3,299 | 248,061 | | Portugal | 2.08 | 928 | 44,674 | | 2.40 | 993 | 41,418 | | Poland | 3.34 | 1,549 | 46,427 | | 3.66 | 1,636 | 44,704 | | DCB Europe | 2.53 | 3,642 | 144,039 | | 2.50 | 3,527 | 141,312 | | US | 4.85 | 7,150 | 147,303 | | 4.72 | 7,012 | 148,643 | | Mexico | 2.65 | 1,420 | 53,476 | | 2.71 | 1,352 | 49,927 | | Brazil | 6.82 | 7,192 | 105,410 | | 6.14 | 6,418 | 104,519 | | Chile | 5.73 | 2,528 | 44,146 | | 5.37 | 2,394 | 44,590 | | Argentina | 7.68 | 677 | 8,813 | | 2.06 | 173 | 8,411 | Numerator: credit impaired customer loans and advances, guarantees and undrawn balances. Denominator: total risk. PagoNxt's NPL ratio is not provided as we do not consider it a relevant metric for this type of business. | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | NPL coverage ratio (EUR million and %) | | | | | | | | | | Dec-25 | | | | Dec-24 | | | | | % | Numerator | Denominator | | % | Numerator | Denominator | | Retail & Commercial Banking | 61 | 11,530 | 18,998 | | 58 | 11,948 | 20,441 | | Digital Consumer Bank | 71 | 8,075 | 11,351 | | 74 | 8,088 | 10,993 | | Corporate & Investment Banking | 48 | 880 | 1,842 | | 39 | 780 | 2,002 | | Wealth Management & Insurance | 71 | 168 | 235 | | 71 | 168 | 237 | | Payments | 127 | 2,150 | 1,695 | | 137 | 1,774 | 1,290 | | PagoNxt | | | | | | | | | Cards | 129 | 2,125 | 1,652 | | 139 | 1,752 | 1,259 | | | | | | | | | | | Spain | 55 | 3,252 | 5,915 | | 53 | 4,039 | 7,672 | | UK | 33 | 860 | 2,645 | | 29 | 967 | 3,299 | | Portugal | 83 | 766 | 928 | | 79 | 789 | 993 | | Poland | 65 | 1,011 | 1,549 | | 62 | 1,013 | 1,636 | | DCB Europe | 87 | 3,181 | 3,642 | | 83 | 2,910 | 3,527 | | US | 55 | 3,934 | 7,150 | | 64 | 4,471 | 7,012 | | Mexico | 105 | 1,488 | 1,420 | | 100 | 1,358 | 1,352 | | Brazil | 83 | 5,996 | 7,192 | | 83 | 5,311 | 6,418 | | Chile | 48 | 1,211 | 2,528 | | 50 | 1,196 | 2,394 | | Argentina | 90 | 607 | 677 | | 177 | 307 | 173 | Numerator: total allowances to cover impairment losses on customer loans and advances, guarantees and undrawn balances. Denominator: credit impaired customer loans and advances, guarantees and undrawn balances. PagoNxt's coverage ratio is not provided as we do not consider it a relevant metric for this type of business. Annual report 2025506 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Cost of risk (EUR million and %) | | | | | | | | | | Dec-25 | | | | Dec-24 | | | | | % | Numerator | Denominator | | % | Numerator | Denominator | | Retail & Commercial Banking | 0.88 | 5,416 | 617,251 | | 0.92 | 5,846 | 632,218 | | Digital Consumer Bank | 2.10 | 4,457 | 212,551 | | 2.16 | 4,562 | 210,748 | | Corporate & Investment Banking | 0.15 | 291 | 195,936 | | 0.09 | 171 | 180,462 | | Wealth Management & Insurance | 0.09 | 22 | 25,482 | | 0.19 | 44 | 23,342 | | Payments | 7.91 | 2,027 | 25,623 | | 7.36 | 1,714 | 23,288 | | PagoNxt | | | | | | | | | Cards | 8.22 | 2,003 | 24,369 | | 7.60 | 1,698 | 22,331 | | | | | | | | | | | Spain | 0.44 | 1,142 | 260,878 | | 0.50 | 1,259 | 249,759 | | United Kingdom | 0.07 | 177 | 244,442 | | 0.03 | 64 | 251,348 | | Portugal | (0.02) | (8) | 40,351 | | 0.03 | 11 | 38,454 | | Poland | 0.71 | 283 | 40,152 | | 1.38 | 511 | 37,138 | | DCB Europe | 0.97 | 1,363 | 140,504 | | 0.88 | 1,209 | 137,165 | | US | 1.63 | 2,244 | 137,603 | | 1.82 | 2,507 | 137,581 | | Mexico | 2.69 | 1,239 | 46,067 | | 2.64 | 1,277 | 48,439 | | Brazil | 4.73 | 4,409 | 93,197 | | 4.51 | 4,487 | 99,532 | | Chile | 1.32 | 531 | 40,181 | | 1.19 | 497 | 41,582 | | Argentina | 7.34 | 574 | 7,820 | | 4.59 | 284 | 6,190 | Numerator: underlying allowances for loan-loss provisions over the last 12 months. Denominator: average loans and advances to customers over the last 12 months. PagoNxt's cost of risk is not provided as we do not consider it a relevant metric for this type of business. #### Other indicators The Group has a series of additional financial metrics which facilitate analysis of the underlying business trends and performance. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Ratio | | Formula | | Relevance of the metric | | TNAV per share (Tangible net asset value per share) | | Tangible book value A | | This is a very commonly used ratio used to measure the company’s accounting value per share having deducted the intangible assets. It is useful in evaluating the amount each shareholder would receive if the company were to enter into liquidation and had to sell all the company’s tangible assets. | | | Number of shares excluding treasury stock | | | Price to tangible book value per share (X) | | Share price | | This is one of the most commonly used ratios by market participants for the valuation of listed companies both in absolute terms and relative to other entities. This ratio measures the relationship between the price paid for a company and its accounting equity value. | | | TNAV per share | | | LTD ratio B (Loan-to-deposit) | | Net loans and advances to customers | | This is an indicator of the bank's liquidity. It measures the total loans and advances to customers net of loan-loss provisions as a percentage of customer deposits. | | | Customer deposits | | | Loans and advances (excl. reverse repos) B | | Gross loans and advances to customers excluding reverse repos | | In order to aid analysis of the commercial banking activity, reverse repos are excluded as they are highly volatile treasury products. | | Deposits (excl. repos) B | | Customer deposits excluding repos | | In order to aid analysis of the commercial banking activity, repos are excluded as they are highly volatile treasury products. | | PAT + After tax fees (in Wealth Management & Insurance) B | | Net profit + fees ceded by Santander Asset Management and Santander Insurance to the branch network, net of taxes, excluding Private Banking customers | | Metric to assess Wealth Management & Insurance’s total contribution to the Group’s profit. | A. Tangible book value = Stockholders’ equity (excl. minority interests) - intangible assets. B. Including Poland. Annual report 2025507 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | --- | --- | --- | --- | | | | | | | Others (EUR million and %) | | | | | | Dec-25 | Dec-24 | Dec-23 | | TNAV (tangible book value) per share | 5.76 | 5.24 | 4.76 | | Tangible book value | 84,527 | 79,342 | 75,552 | | Number of shares excl. treasury stock (million) | 14,678 | 15,137 | 15,886 | | | | | | | Price to tangible book value per share (X) | 1.75 | 0.85 | 0.79 | | Share price (euros) | 10.070 | 4.465 | 3.780 | | TNAV (tangible book value) per share | 5.76 | 5.24 | 4.76 | | | | | | | Loan-to-deposit ratio | 98% | 100% | 99% | | Net loans and advances to customers | 1,076,315 | 1,054,069 | 1,036,349 | | Customer deposits | 1,095,827 | 1,055,936 | 1,047,169 | | | | | | | | 2025 | 2024 | | | PAT + After tax fees (in Wealth) (Constant EUR million) | 3,796 | 3,195 | | | Profit after tax | 2,158 | 1,705 | | | Net fee income net of tax | 1,639 | 1,490 | | #### Local currency measures We make use of certain financial measures in local currency to help in the assessment of our ongoing operating performance. These non-IFRS financial measures include the results of operations of our subsidiary banks located outside the eurozone, excluding the impact of foreign exchange. Because changes in foreign currency exchange rates do not have an operating impact on the results, we believe that evaluating their performance on a local currency basis provides an additional and meaningful assessment of performance to both management and the company’s investors. The Group presents, at both the Group and business unit levels, the real changes in euros in the income statement as well as the changes excluding the exchange rate effect (i.e., 'excluding FX' or 'constant euros'), as it considers the latter facilitates analysis, since it enables business movements to be identified without taking into account the impact of converting each local currency into euros. Said variations, excluding the impact of exchange rate movements, are calculated by converting income statement lines for the different business units comprising the Group into our presentation currency, the euro, applying the average exchange rate for 2025 to all periods contemplated in the analysis. We use this method for all countries with the exception of Argentina, where we use the exchange rate on the last working day of each period presented, given it is a hyperinflationary economy, to mitigate the distortions caused by the hyperinflation. The Group presents, at both the Group level as well as the business unit level, the changes in euros as well as the changes excluding the exchange rate effect ('excluding FX' or 'constant euros') for loans and advances to customers excluding reverse repurchase agreements (repos) and customer funds (which comprise deposits and mutual funds) excluding repos. Additionally, we present changes in the main balance sheet lines of the Group's countries both in euros as well as the changes excluding the exchange rate effect. As with the income statement, the reason is to facilitate analysis by isolating the changes in the balance sheet that are not caused by converting each local currency into euros. These changes excluding the impact of exchange rate movements are calculated by converting the balances, into our presentation currency, the euro, applying the closing exchange rate on the last working day of December 2025 to all periods contemplated in the analysis. We use this method to calculate the variations for all countries with the exception of Argentina, where we use the exchange rate on the last working day of each period presented, given it is a hyperinflationary economy, to mitigate the distortions caused by the hyperinflation. Due to the significant divergence between the official Argentine peso exchange rate and other macroeconomic magnitudes, mainly inflation, we applied an alternative exchange rate to 2024 results which reflected the exchange rate observed in transactions ordered between market participants under the prevailing economic conditions, such as the repatriation of dividends from businesses in Argentina. This alternative exchange rate tock the dollar contado con liquidación rate (CCL) as a reference, which is the exchange rate resulting from the sale of local bonds denominated in Argentine pesos in US dollars (dual denomination peso/dollar bonds). At the end of 2024, the value of this exchange rate did not significantly differ from other market rates or the official exchange rate. Annual report 2025508 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | However, for data relating to 2025, we apply the official exchange rate given that the value of the dollar CCL exchange rate did 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. The average and period-end exchange rates for the main currencies in which the Group operates are set out in the table below. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Exchange rates: 1 euro/currency parity | | | | | | | | Average (income statement) | | | Period-end (balance sheet) | | | | 2025 | 2024 | | 2025 | 2024 | | US dollar | 1.129 | 1.082 | | 1.176 | 1.039 | | Pound sterling | 0.857 | 0.846 | | 0.873 | 0.829 | | Brazilian real | 6.304 | 5.809 | | 6.458 | 6.427 | | Mexican peso | 21.662 | 19.723 | | 21.122 | 21.554 | | Chilean peso | 1,073.108 | 1,020.473 | | 1,059.750 | 1,032.560 | | Argentine peso A | | | | 1,706.383 | 1,232.389 | | Polish zloty | 4.239 | 4.305 | | 4.220 | 4.275 | A. Average exchange rates for the Argentine peso are not included since we use the exchange rate on the last working day of each period presented given it is a hyperinflationary economy. For 2024 data, we applied an alternative exchange rate for the Argentine peso that better reflects the evolution of inflation. We apply the official ARS exchange rate to all other periods. #### Impact of inflation on operating expenses Santander presents, for both the Group and the business units included in the primary and secondary segments: i) the changes in operating expenses in euros; ii) the changes excluding the exchange rate effect with the exception of Argentina which is calculated as described above; and iii) the changes excluding the exchange rate effect minus the effect of average inflation over the year except for Argentina as cost growth in euros should already largely reflect the effect of hyperinflation on exchange rates. The reason is that the two latter facilitate analysis for management purposes. Inflation is calculated as the arithmetic average of the last 12 months for each country and, for the global businesses, as the weighted average of the inflation rate of each country comprising the global business, weighted by each country's operating expenses in the global business. For the Group and the global businesses, we exclude the impact of inflation in Argentina from the calculation as cost growth in euros should already largely reflect the effect of hyperinflation on exchange rates. The table below shows the average inflation rates calculated as indicated. | | | | --- | --- | | | | | Average inflation 2025 (%) | | | | Average inflation last 12 months | | Retail & Commercial Banking A | 3.6 | | Digital Consumer Bank A | 2.5 | | Corporate & Investment Banking A | 3.0 | | Wealth Management & Insurance A | 3.0 | | PaymentsA | 3.2 | | | | | Spain | 2.7 | | UK | 3.4 | | Portugal | 2.3 | | Poland | 3.6 | | DCB Europe | 2.1 | | US | 2.7 | | Mexico | 3.8 | | Brazil | 5.0 | | Chile | 4.2 | | Total Group A | 3.2 | A. Excluding the impact of inflation in Argentina. Annual report 2025509 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 7. Technological innovation: artificial intelligence, cybersecurity and fintech ecosystem Technological innovation is one of the fundamental pillars underpinning the Group’s strategy. In an environment of constant disruption, technology, data and artificial intelligence (AI) are essential to anticipate customer needs, drive operational efficiency and generate new opportunities for sustainable growth. We continue to evolve from a traditional banking model towards a digital ecosystem, with the aim of becoming the best financial services platform. The adoption of AI, the rollout of a robust and efficient technological infrastructure, the continuous strengthening of cybersecurity and collaboration within the fintech ecosystem act as key levers to enhance customer experience, promote operational excellence and simplify the ecosystem, contributing to the creation of sustainable long-term value. This approach reinforces our commitment to innovation, technical excellence and global collaboration, aligned with the highest standards of security and compliance, to offer secure and personalized experiences for both customers and Group professionals. During 2025, Santander took a decisive step with the creation of the Global Data and Artificial Intelligence (Data & AI) function, aimed at extracting maximum value from data and accelerating transformation by using AI as a lever. It is a cross-cutting function across all global businesses and countries, enabling us to scale capabilities, strengthen collaboration and accelerate the impact of innovation. EUR 1,713 million was allocated during the year to digital transformation activities demonstrating the Group's firm and ongoing commitment to investment in technology and innovation. For more information, see [note 18](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1069) to the consolidated annual accounts. 7.1 Data and artificial intelligence The global Data and AI function is structured around three pillars: 1. Transform customer experience and operations, by integrating AI and advanced automation capabilities into key processes. 2. Improve decision-making with reliable data, based on common standards of quality, traceability and governance. 3. Accelerate the business impact, driving the development of analytical models and scalable solutions that generate tangible and sustainable results. To make this transformation possible, we continued to implement data governance from its point of origin and throughout its entire lifecycle, while progressing towards a unified data architecture. This eliminates silos, facilitates the efficient and global reutilization of data and enables the secure scaling of AI capabilities across the organization. The rollout of the Data & AI function is structured under a business- led model: each initiative stems from a specific business need and is supported by a global network of Data & AI leaders across businesses and countries. We have a unique portfolio with more than 1,000 initiatives, prioritizing projects with the greatest impacts on efficiency, automation and customer experience thereby focusing development on a limited set of global, reusable and scalable capabilities. This is carried out by multidisciplinary teams working under agile methodology, combining business, data, advanced analytics, technology, risk and compliance capabilities. Our approach ensures that each solution is designed under criteria covering security, responsibility and value-creation from the outset, while promoting technical consistency and reusability across countries. The Group internally develops strategic capabilities but also  works with external partners when they provide speed or specialization, always under strict governance and data protection standards, within the framework of a secure and ethical global ecosystem. Specifically, we develop solutions that incorporate machine learning and advanced analytics techniques, which contribute directly to revenue growth and improvements in operational efficiency. Their application spans areas such as process simplification, enhanced customer acquisition and retention, fraud prevention, and the strengthening of the cards business throughout its entire life cycle. Governance, ethics and responsible use of artificial intelligence The governance of Data and AI within the Group is based on a robust global model that ensures the security, proper lifecycle management and ethical use of these technologies. This model is included in the corporate data and AI framework, approved by the board of directors, and is complemented by the AI management Annual report 2025510 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | and governance policy, which regulates the full lifecycle of the Group's AI use cases. The governance framework ranges from data quality to model control and supervision is based on a structure of three lines of defence that ensures independent oversight proportionate to the level of risk. It also incorporates the principles of responsible AI, which guide the design and delivery of all solutions: transparency, fairness and reduction of biases, accountability, privacy and security, as well as contributing to value creation which guide the design and operation of solutions. As part of the Group’s firm commitment to the responsible use of AI, we implemented mandatory training. We apply these principles across common processes for identifying, classifying, inventorying and controlling AI use cases, which makes it possible to assess their potential impact and establish appropriate controls at each stage. This approach ensures a centralized view, comprehensive follow-up and regulatory compliance across all Group units and countries. Talent Advances in the use of data and AI require the development of new capabilities and a cultural shift. Therefore, the Group promotes a global talent strategy that combines the strengthening of internal capabilities, the attraction of specialized profiles and the consolidation of a culture based on controlled experimentation, rigorous analysis and the responsible use of technology. In 2025, we completed the formation of the Data & AI team, strengthening the second line of defence and the function’s operating model with end-to-end execution capabilities. In addition, we improved upskilling and reskilling programmes on AI, data science and data governance and we integrated specialized profiles in data engineering, advanced analytics and AI operations, driving the execution of key initiatives. Furthermore, a structured AI training programme was launched to foster adoption and maximize the value derived from employees’ use of these tools. Adoption of AI In 2025, we significantly accelerated the adoption of AI among our employees, driving improvements in productivity, operational efficiency and service quality. Implementation was carried out safely and progressively, prioritizing use cases with tangible impacts and guaranteeing data protection and traceability of the models at all times. The most important applications were the following: • AI Assistants: approximately 30,000 employees are using advanced AI tools and over 7,000 active agents have improved document writing, information analysis and automation of lower value-added tasks. • Intelligent automation: the Group has built more than 100 agents for processes automation and trained more than 800 engineers in automation tools, resulting in faster, more reliable and scalable operations. • Software lifecycle: more than 30 use cases (for example, functional testing, documentation and code maintenance) have been delivered, used by over 6,000 developers through coding agents to reduce delivery times and improve software quality. • Customer service: the Group is moving towards a new generation of experiences based on conversational AI. The first AI-based voice solutions are currently in the testing phase and represent a significant leap from traditional systems, designed to enable  faster and more efficient interactions. Preparing for the future: next steps Looking ahead to the next stages, the Group will accelerate its comprehensive AI strategy to transform the financial services of the future in a secure and responsible manner. The objective is to scale capabilities, differentiate ourselves and capture value by combining in-house development, strategic partnerships and investment. Research and experimentation capabilities will be strengthened by intensifying the exploration of emerging technologies, the early validation of use cases and the monitoring of global trends. In addition, partnerships with leading technology companies will continue to establish co-design and deploy high-impact solutions, combining their scale with the Group’s business expertise, data assets and regulatory experience. The Group will expand collaboration with specialized startups and will continue with its investment strategy, with more than 20 deals completed to date, to accelerate capabilities, incorporate differentiated innovation and reduce time-to-market. In parallel, we will move forward with the creation of our own AI Studio to develop, train and adapt models based on specific data and needs, thereby strengthening technological autonomy and personalization. All of this will be underpinned by a global network of academic partnerships to foster cutting-edge research, talent development and the generation of advanced knowledge in AI and data. Through this approach, we will consolidate the responsible adoption of AI on the basis of evidence, impact and sustainable value creation. 7.2 Technological infrastructure Santander has migrated more than 97% of its technological infrastructure to the cloud, with the aim of boosting standardization, maximizing scalability and strengthening service availability. It has also accelerated the deployment of next- generation infrastructure based on the on-premise private cloud, supported by an architecture with greater capacity, resilience and efficiency. All of this contributes to reducing energy consumption and advancing the Group's sustainability goals achieving an estimated reduction in its carbon footprint of 49.5 tonnes of CO₂. The Group has a network of paired, high-quality data processing centres (CPDs), interconnected through a redundant communications system and distributed in strategic locations to support and ensure the continuity of the Group's activity. These centres combine traditional IT systems with on-premise private cloud capabilities, enabling the integration of technological management across business areas, accelerating digitalization and achieving significant efficiencies through the standardization and simplification of operations. Annual report 2025511 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 7.3 Cybersecurity Cybersecurity remains one of the Group’s priorities. During 2025, we faced a dynamic and increasingly sophisticated threat landscape, including more ransomware attacks, intensified hacktivism and supply chain threats, together with the growing use of social engineering and AI techniques by attackers. To face these challenges, Santander has continued to evolve its defences in line with the cybersecurity strategy, centred on three pillars: • Shift-left. The principles of security by design were strengthened, incorporating risk management and the definition of security architectures from the early stages of each initiative. Among the most important advances were: i) the strengthening of controls related to critical environments and identification of people who interact with our banks' systems; ii) the strengthening of security controls to mitigate risks associated with supply chains; and iii) the consolidation of the Cyber Pro culture, that reinforces employee training, with special attention to groups with the greatest exposure to risk. • Increased cyberdefence. Santander continued to harness the potential of AI and automation to strengthen threat prevention, detection and response. We implemented new solutions that improved threat detection and response times. Likewise, we significantly increased the early detection of online scams and fraud by analysing user behaviour in real time, enabling us to distinguish legitimate from fraudulent activities. • Operational resilience. The Group strengthened its capacity to anticipate, resist and recover from potential cyber scenarios, strengthening response preparedness and continuity of essential services. Among the main improvements are the global expansion of the Cyber Emergency Response Team, which is permanently operational and the expansion of resilience and recovery tests in line with the DORA Regulation. The Santander Fusion Centre, which integrates the Cybersecurity and IT Monitoring teams, performs detection, monitoring and response functions to operational failures and cybersecurity events for Group entities. Information systems are reviewed regularly through internal and external audits. The Group identifies IT assets, systems and information (including those managed by third parties) and periodically assesses the associated risks and protection levels. Additionally, it has a permanent testing ecosystem, including (vulnerability analysis, penetration testing, red teaming exercises and cyberattack simulations) which enable potential weaknesses to be identified and proactively mitigated, prioritizing remediation according to criticality and potential impacts on the business. Independent entities review and certify critical cybersecurity processes. Certifications include ISO 27001:2022 and ISO 27017, SSAE 18 and Payment Card Industry Data Security Standard (PCI DSS) 4.0, which are reviewed and updated regularly, incorporating new processes and controls every year. For more information on cybersecurity initiatives carried out during the year, see section [3.3.3 'Privacy, data protection and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_196) [cybersecurity'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_196) in the [‘Sustainability statement'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) chapter. For the measurement, monitoring and control of cybersecurity-related risks and their mitigation plans, see [5.2 'Operational risk](#i6ecb2a0d58d04b53bfadfa2a833efaa7_868) [management'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_868) in the ['Risk management and compliance'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) chapter. #### 7.4 Fintech ecosystem Santander actively participates in the fintech ecosystem across all global businesses and countries in which it operates, and with all the global units. As part of our efforts to foster and channel innovation while improving customer experience and efficiency, we partner with technology companies. Through our Fintech Station programme, we work with startups and scale-ups in pilot programmes and implement or co-create new products and services with them. In 2025, Santander Fintech Station worked on eight proofs of concept (PoC) and also collaborated on the implementation of six production initiatives. The Group also provided banking services to these fintech companies, such as advice on financing rounds, buying and selling processes and IPOs. We are an active investor in the fintech sector, sometimes directly, through our programme focused on investments in startups with high strategic value for the Group or through funds promoted by the Group, such as Mouro Capital, a global venture capital fund that invests in fintechs, and has already launched a second fund. To date, the programme focused on investments in strategically valuable startups has invested directly in more than 20 companies globally, and Mouro has a portfolio of more than 40 investments in technology companies across Europe, North America and South America. These investments, together with commercial collaboration with participating companies, continue to be a key tool for driving innovation within the Group. Santander works with companies in these portfolios, for example with Colektia, an AI solution for automated recovery services in Latin America; Elliptic, in blockchain analytics and regulatory compliance for digital assets; and Drive Revel, to provide a flexible, digital vehicle leasing offering in Spain. In addition, the Group invests in the field of cybersecurity through Forgepoint Capital International, a venture capital manager that is raising its first fund outside the US and which, with the Group’s support, has already made six investments. Annual report 2025512 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 8. Significant events since year end • On 9 January 2026, Banco Santander and Erste Group Bank AG (Erste) announced the completion of the sale of Santander Bank Polska (Santander Poland), following the receipt of all required regulatory approvals and fulfilling the conditions for closing. This sale had been disclosed in May 2025. Erste acquired approximately 49% of the share capital of Santander Poland and 50% of the asset management company (TFI) which was not integrated within Santander Poland, for a total cash consideration of approximately EUR 7 billion. The all- cash transaction at 584 zlotys per share values the bank at 2.2 times first-quarter 2025 tangible book value per share and represents a premium of 7.5% versus Santander Poland's closing price on 2 May 2025, excluding the dividend paid in May 2025. The transaction resulted in a net capital gain of approximately EUR 1.9 billion for Santander, increasing its CET1 ratio by c.95 basis points, equivalent to around EUR 6 billion. The financial impacts on both results and capital from this transaction will be recorded in Q1 2026. • On 3 February 2026, a EUR 5 billion share buyback was approved for which regulatory approvals have been received, comprising approximately EUR 1.8 billion against H2 2025 results, as well as approximately EUR 3.2 billion linked to excess capital from the sale of 49% of Santander Poland. This share buyback programme commenced on 4 February 2026. • On 3 February 2026, Santander also announced that it had reached an agreement to acquire 100% of Webster Financial Corporation’s (Webster) share capital, a US retail and commercial bank, complementary to our US business. The transaction is subject to customary closing conditions, including the corresponding regulatory approvals and approvals by Webster's and Santander's shareholders. Once completed, we expect that this acquisition, valued at USD 12.2 billion (approximately EUR 10.3 billion), will enable us to improve our positioning and market share in the country. • Webster shareholders will receive USD 48.75 per Webster share in cash (approximately 65% of the consideration mix) and 2.0548 Santander shares in the form of American Depositary Shares per Webster share, representing USD 26.25 per Webster share based on the volume-weighted average price of EUR 10.79 per Santander share for the three-day period ended on 2 February 2026, and a EUR/USD exchange ratio of 1.1840 as of 2 February 2026 (approximately 35% of the consideration mix). Annual report 2025513 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 9. New reporting structure from 1 January 2026 #### 9.1 Changes in reporting from 2026 #### Introduction In addition to what has already been set out in the previous sections of this chapter of the Annual report, on 10 February 2026 the Group announced that it will implement a series of changes to its reporting structure. They do not change the Group’s attributable profit nor do they affect the Group's targets announced in the Q4 2025 results presentation but rather, they are intended to improve the transparency and comparability of the metrics and financial statements, as well as to align the reporting with the way the bank has been managed since the beginning of 2026. These changes, which affect the underlying income statements and certain management metrics, will be applied to the information reported from Q1 2026. This section explains these changes and includes the financial and management information for 2024 and 2025 in accordance with said changes to enable comparisons across periods. These changes do not affect Group’s consolidated balance sheet. For further information about the Group's balance sheet, see section [4.3. 'Balance sheet'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_679) of this chapter. #### Main changes The main changes are as follows: a. Poland disposal In the underlying income statement, the results associated with the business subject to the Poland disposal will be recorded in a single line item under 'non-recurring items'. Consequently, the global businesses, which, in accordance with IFRS 8, are reported only on an underlying basis, will also exclude Poland. Likewise, the underlying ratios, management metrics and business volumes will not include the activity affected by the Poland disposal. b. Classification of certain costs Certain charges that, until 2025, were recorded under the 'other results and provisions' line item will be presented in different lines of the underlying income statement. Particularly, charges mainly relating to bank levies and specific taxes applicable to the banking sector, will now be recorded under 'other operating income'. In addition, certain recurring operating charges, primarily related to labour (mainly in Brazil) and legal processes, will be recorded in 'total costs' (comprising 'administrative expenses and amortizations' and 'other operating costs'). c. #### Reporting of the Cards business within Retail & #### Commercial Banking (Retail) Given that our payments platform strategy is now largely established, we are positioning Payments, renamed Payment Solutions, as the Group’s payments platform business. In this context, from 1 January 2026, the income statement and balance sheet items relating to the Cards business will be reclassified to Retail (previously recorded in Payments), to better align reporting with the management structure in these businesses in 2026. Plard, the Group’s card processing platform, will remain in Payment Solutions and will charge market-based fees to the global businesses for card processing. d. Cost of risk, NPL ratio and NPL coverage ratio The definitions of the cost of risk, the non-performing loan (NPL) ratio and the NPL coverage ratio will be enhanced to include corporate exposures originated through private fixed income products. This adjustment provides a more accurate view of our credit exposure and quality. e. RoTE Spain The Santander Spain secondary segment does not have its own accounting tangible equity since it is booked under Banco Santander, S.A. with other units such as the Corporate Centre. For this reason, a theoretical tangible equity is allocated to the segment. The methodology for allocating such tangible equity to Spain will be updated to increase accuracy, taking into account: i) the amount required to reach a 13% CET1 ratio; and ii) the allocation of deductions and other capital adjustments (add-ons). f. Other changes within the primary segments In addition to the change in the Payments business described in section c, two minor adjustments will be introduced to the primary segments: i) the Digital Consumer Bank (Consumer) business will be renamed Openbank; and ii) Wealth Management & Insurance will be reorganized into two business lines: Private Banking, which comprises the corporate private banking unit and International Annual report 2025514 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Private Banking in the US, Switzerland and the UAE; and Insurance & Asset Management Solutions, which will bring together the insurance business and liquid and illiquid asset management activities, and will include the investment platforms and holdings that complement the traditional Wealth business. These changes will not impact figures at the Group or primary segment levels. #### Description of segments for 2026 Taking into account all of the changes detailed above, from 2026 the primary and secondary segments will be structured as follows: #### Primary segments This primary level of segmentation, will comprise six reportable segments: five global businesses plus the Corporate Centre. Retail & Commercial Banking (Retail): area that integrates the retail banking and commercial banking businesses (individuals, SMEs and corporates), except private banking clients and business originated in the consumer finance businesses. Detailed financial information will be provided on Spain (Retail Spain), the UK (Retail UK), Mexico (Retail Mexico) and Brazil (Retail Brazil), which represent most of the total Retail business. Openbank, formerly Digital Consumer Bank (Consumer): comprises all business originated by consumer finance companies, plus our digital bank (formerly Openbank), Open Digital Services (ODS) and SBNA Consumer. Detailed financial information will be provided on Europe (Openbank Europe) and the US (Openbank US). Corporate & Investment Banking (CIB): this business, which includes Global Transaction Banking, Global Banking (Global Debt Financing and Corporate Finance) and Global Markets, offers products and services on a global scale to corporate and institutional customers, and collaborates with other global businesses to better serve our broad customer base. Wealth Management & Insurance (Wealth): will comprise two business lines: i) Private Banking, which includes the corporate private banking unit and International Private Banking in the US, Switzerland and the UAE; and ii) Insurance & Asset Management Solutions, which will bring together the insurance business and liquid and illiquid asset management activities and will include the investment platforms and holdings that complement the traditional Wealth business. Payment Solutions: will bring together the Group’s digital payment solutions, providing global technological solutions to Group entities and new customers in the open market. It will comprise Getnet, Getnet Platforms and Ebury. Corporate Centre: includes the centralized activities relating to equity stakes in financial companies, financial management of the structural exchange rate position, assumed within the sphere of the Group’s asset and liability committee, as well as management of liquidity and of shareholders’ equity via issuances. As the Group’s holding entity, this area manages all capital and reserves and allocations of capital and liquidity with the other businesses. It also incorporates goodwill impairments but not the costs related to the Group’s central services (charged to the areas), except for corporate and institutional expenses related to the Group’s functioning. #### Secondary segments This secondary level includes our main geographical units and the Corporate Centre, as described in the primary segments. Detailed financial information will be provided on Spain, the UK, Portugal, Openbank Europe (previously referred to as DCB Europe), which includes all consumer business, our digital bank in Europe and ODS, the US, Mexico, Brazil, Chile and Argentina. Information is also provided for the 'Rest of the Group', the grouping which brings together everything that is not included in the aforementioned geographical units or the Corporate Centre. Annual report 2025515 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | | | | | | As explained in section '[a. Poland disposal](#i2a4e490f3b0a4ed7bd8df16a0e874de2_71317)' and unless otherwise stated, the following underlying income statements, underlying ratios, management metrics and business volumes exclude balances related to the Poland disposal in all periods presented. | | | | | | #### Group | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Condensed underlying income statement | | | | | | | EUR million | | | | | | | | | Change | | | | 2025 | 2024 | Absolute | % | % excl. FX | | Net interest income | 42,401 | 43,824 | (1,423) | (3.2) | 0.5 | | Net fee income | 12,928 | 12,335 | 593 | 4.8 | 9.1 | | Gains (losses) on financial transactions and exchange differences | 2,354 | 2,216 | 138 | 6.2 | 9.7 | | Other operating income | 625 | (391) | 1,016 | — | — | | Total income | 58,308 | 57,984 | 324 | 0.6 | 4.5 | | Total costs | (26,410) | (27,354) | 944 | (3.5) | 0.0 | | Net operating income | 31,898 | 30,630 | 1,268 | 4.1 | 8.6 | | Net loan-loss provisions | (12,128) | (11,822) | (306) | 2.6 | 8.1 | | Other gains (losses) and provisions | (834) | (1,431) | 597 | (41.7) | (41.3) | | Profit before tax | 18,936 | 17,377 | 1,559 | 9.0 | 13.2 | | Tax on profit | (4,939) | (4,853) | (86) | 1.8 | 5.3 | | Profit from continuing operations | 13,997 | 12,524 | 1,473 | 11.8 | 16.2 | | Net profit from discontinued operations | — | — | — | — | — | | Consolidated profit | 13,997 | 12,524 | 1,473 | 11.8 | 16.2 | | Non-controlling interests | (845) | (750) | (95) | 12.7 | 17.7 | | Underlying profit attributable to the parent A | 13,152 | 11,774 | 1,378 | 11.7 | 16.1 | | Non-recurring items | 949 | 800 | 149 | 18.6 | 18.6 | | Profit attributable to the parent | 14,101 | 12,574 | 1,527 | 12.1 | 16.3 | | | | | | | --- | --- | --- | --- | | | | | | | Underlying EPS, profitability and efficiency B (%) | 2025 | 2024 | %  2025 vs. 2024 | | Underlying earnings per share (euro) | 0.84 | 0.72 | 16.9 | | Underlying RoE | 13.0 | 12.2 | | | Underlying RoTE (post-AT1) | 15.2 | 14.4 | | | Underlying RoA | 0.79 | 0.72 | | | Underlying RoRWA | 2.31 | 2.07 | | | Efficiency ratio | 45.3 | 47.2 | | | | | | | --- | --- | --- | | | | | | Credit quality (%) B | Dec-25 | Dec-24 | | Cost of risk C | 1.14 | 1.12 | | NPL ratio | 2.91 | 3.03 | | NPL coverage ratio | 66 | 64 | | | | | | | --- | --- | --- | --- | | | | | | | Operating data | Dec-25 | Dec-24 | % Dec-25 vs. Dec-24 | | Number of employees | 187,539 | 196,088 | (4.4) | | Number of branches | 6,765 | 7,718 | (12.3) | Note: Including Poland, as at 31 December 2025, number of employees: 198,403; number of branches: 7,124. As at 31 December 2024, number of employees: 206,753; number of branches: 8,086. | | | | | | --- | --- | --- | --- | | | | | | | Customers (thousands) | Dec-25 | Dec-24 | % Dec-25 vs. Dec-24 | | Total customers | 174,197 | 166,559 | 4.6 | | Active customers D | 101,651 | 98,631 | 3.1 | | Digital customers E | 59,040 | 55,553 | 6.3 | Note: Including Poland, as at 31 December 2025, total customers: 180,221; active customers: 106,410; digital customers: 62,982. As at 31 December 2024, total customers: 172,537; active customers: 103,262; digital customers: 59,317. A. Excluding non-recurring items. B. In addition to IFRS measures, we present non-IFRS measures including some which we refer to as underlying measures. These non-IFRS measures exclude items outside the ordinary course of business and reclassify certain items under some headings of the underlying income statement. C. Allowances for loan-loss provisions over the last 12 months / Average loans and advances to customers over the last 12 months and debt securities issued by non-financial institutions over the last 12 months. D. Those customers who comply with the minimum balance and/or transactionality requirements as defined according to the business area. E. Every physical or legal person, that, being part of a commercial bank, has logged in to its personal area of internet banking or mobile phone or both in the last 30 days. Annual report 2025516 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Business volumes | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Loans and advances to customers | | | | | | EUR million | | | | | | | | | Change | | | | Dec-25 | Dec-24 | Absolute | % | | Commercial bills | 51,110 | 51,429 | (319) | (0.6) | | Secured loans | 530,749 | 538,218 | (7,469) | (1.4) | | Other term loans | 295,998 | 284,136 | 11,862 | 4.2 | | Finance leases | 38,540 | 37,643 | 897 | 2.4 | | Receivable on demand | 10,313 | 10,737 | (424) | (3.9) | | Credit cards receivable | 26,179 | 24,563 | 1,616 | 6.6 | | Impaired assets | 31,577 | 32,235 | (658) | (2.0) | | Gross loans and advances to customers (excluding reverse repos) | 984,466 | 978,961 | 5,505 | 0.6 | | Reverse repurchase agreements | 73,980 | 59,344 | 14,636 | 24.7 | | Gross loans and advances to customers | 1,058,446 | 1,038,305 | 20,141 | 1.9 | | Loan-loss allowances | 21,158 | 21,145 | 13 | 0.1 | | Net loans and advances to customers | 1,037,288 | 1,017,160 | 20,128 | 2.0 | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Total customer funds | | | | | | EUR million | | | | | | | | | Change | | | | Dec-25 | Dec-24 | Absolute | % | | Demand deposits | 646,125 | 641,237 | 4,888 | 0.8 | | Time deposits | 298,284 | 286,296 | 11,988 | 4.2 | | Mutual funds | 255,389 | 227,226 | 28,163 | 12.4 | | Customer funds | 1,199,798 | 1,154,759 | 45,039 | 3.9 | | Pension funds | 16,112 | 15,646 | 466 | 3.0 | | Managed portfolios | 50,459 | 42,969 | 7,490 | 17.4 | | Repurchase agreements | 96,791 | 78,072 | 18,719 | 24.0 | | Total funds | 1,363,160 | 1,291,446 | 71,714 | 5.6 | Annual report 2025517 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Primary segments | | | | | | | --- | --- | --- | --- | --- | | | | | | | | RETAIL & COMMERCIAL BANKING | | | | | | EUR million | | | | | | Underlying income statement | 2025 | 2024 | % | % excl. FX | | Net interest income | 26,528 | 27,854 | (4.8) | (0.7) | | Net fee income | 6,222 | 6,022 | 3.3 | 8.6 | | Gains (losses) on financial transactions ᴬ | 680 | 805 | (15.5) | (13.7) | | Other operating income | (983) | (1,617) | (39.2) | (38.1) | | Total income | 32,447 | 33,064 | (1.9) | 2.5 | | Total costs | (13,913) | (14,704) | (5.4) | (1.3) | | Net operating income | 18,534 | 18,359 | 1.0 | 5.5 | | Net loan-loss provisions | (7,150) | (7,064) | 1.2 | 8.0 | | Other gains (losses) and provisions | (385) | (545) | (29.3) | (28.8) | | Profit before tax | 10,998 | 10,750 | 2.3 | 5.8 | | Tax on profit | (2,974) | (3,132) | (5.0) | (2.0) | | Profit from continuing operations | 8,024 | 7,619 | 5.3 | 9.0 | | Net profit from discontinued operations | — | — | — | — | | Consolidated profit | 8,024 | 7,619 | 5.3 | 9.0 | | Non-controlling interests | (314) | (273) | 14.9 | 22.4 | | Underlying profit attributable to the parent | 7,710 | 7,345 | 5.0 | 8.5 | | | | | | | | Business volumes | | | | | | Gross loans and advances to customers ᴮ | 591,287 | 600,230 | (1.5) | 1.1 | | Customer funds | 726,779 | 706,505 | 2.9 | 4.8 | | Customer deposits C | 616,402 | 607,094 | 1.5 | 3.7 | | Mutual funds | 110,377 | 99,411 | 11.0 | 11.5 | | Risk-weighted assets | 290,080 | 285,525 | 1.6 | | | | | | | | | Ratios (%), operating means and customers | | | | | | RoTE (post-AT1) | 17.1 | 17.6 | (0.6) | | | Efficiency ratio | 42.9 | 44.5 | (1.6) | | | NPL ratio | 3.09 | 3.21 | (0.12) | | | NPL coverage ratio | 66 | 63 | 3 | | | Number of employees | 126,299 | 135,901 | (7.1) | | | Number of total customers (thousands) | 147,129 | 141,179 | 4.2 | | | Number of active customers (thousands) | 76,305 | 74,465 | 2.5 | | | | | | | | | A.  Includes exchange differences. | | | | | | B.  Excluding reverse repos. | | | | | | C.  Excluding repos. | | | | | Annual report 2025518 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | --- | --- | --- | --- | | | | | | | Retail Spain | | | | | EUR million | | | | | Underlying income statement | 2025 | 2024 | % | | Net interest income | 5,877 | 5,930 | (0.9) | | Net fee income | 1,223 | 1,199 | 2.0 | | Total income | 7,143 | 6,915 | 3.3 | | Total costs | (2,605) | (2,606) | (0.1) | | Net operating income | 4,538 | 4,309 | 5.3 | | Net loan-loss provisions | (1,036) | (1,121) | (7.6) | | Profit before tax | 3,316 | 2,824 | 17.4 | | | | | | | Business volumes | | | | | Gross loans and advances to customers ᴬ | 156,497 | 156,118 | 0.2 | | Customer funds | 281,486 | 266,230 | 5.7 | | Customer deposits ᴮ | 230,850 | 222,089 | 3.9 | | Mutual funds | 50,636 | 44,141 | 14.7 | | | | | | | A.  Excluding reverse repos. | | | | | B.  Excluding repos. | | | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Retail UK | | | | | | EUR million | | | | | | Underlying income statement | 2025 | 2024 | % | % excl. FX | | Net interest income | 4,846 | 4,760 | 1.8 | 3.0 | | Net fee income | 313 | 233 | 34.4 | 36.1 | | Total income | 4,812 | 4,766 | 1.0 | 2.2 | | Total costs | (2,853) | (2,965) | (3.8) | (2.6) | | Net operating income | 1,959 | 1,801 | 8.8 | 10.1 | | Net loan-loss provisions | (177) | (64) | 177.3 | 180.7 | | Profit before tax | 1,658 | 1,633 | 1.5 | 2.7 | | | | | | | | Business volumes | | | | | | Gross loans and advances to customers ᴬ | 225,043 | 233,033 | (3.4) | 1.6 | | Customer funds | 215,472 | 217,765 | (1.1) | 4.1 | | Customer deposits ᴮ | 209,427 | 211,720 | (1.1) | 4.1 | | Mutual funds | 6,046 | 6,045 | 0.0 | 5.3 | | | | | | | | A.  Excluding reverse repos. | | | | | | B.  Excluding repos. | | | | | Annual report 2025519 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Retail Mexico | | | | | | EUR million | | | | | | Underlying income statement | 2025 | 2024 | % | % excl. FX | | Net interest income | 3,901 | 3,974 | (1.8) | 7.8 | | Net fee income | 929 | 910 | 2.1 | 12.1 | | Total income | 4,820 | 4,861 | (0.8) | 8.9 | | Total costs | (2,055) | (2,114) | (2.8) | 6.8 | | Net operating income | 2,765 | 2,746 | 0.7 | 10.6 | | Net loan-loss provisions | (1,136) | (1,222) | (7.0) | 2.1 | | Profit before tax | 1,628 | 1,524 | 6.9 | 17.4 | | | | | | | | Business volumes | | | | | | Gross loans and advances to customers ᴬ | 37,284 | 35,721 | 4.4 | 2.3 | | Customer funds | 54,278 | 48,220 | 12.6 | 10.3 | | Customer deposits ᴮ | 38,864 | 35,245 | 10.3 | 8.1 | | Mutual funds | 15,414 | 12,975 | 18.8 | 16.4 | | | | | | | | A.  Excluding reverse repos. | | | | | | B.  Excluding repos. | | | | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Retail Brazil | | | | | | EUR million | | | | | | Underlying income statement | 2025 | 2024 | % | % excl. FX | | Net interest income | 7,190 | 7,811 | (7.9) | (0.1) | | Net fee income | 2,188 | 2,327 | (6.0) | 2.0 | | Total income | 9,172 | 9,992 | (8.2) | (0.4) | | Total costs | (3,936) | (4,159) | (5.4) | 2.7 | | Net operating income | 5,237 | 5,833 | (10.2) | (2.6) | | Net loan-loss provisions | (3,762) | (3,857) | (2.5) | 5.8 | | Profit before tax | 1,464 | 1,975 | (25.9) | (19.6) | | | | | | | | Business volumes | | | | | | Gross loans and advances to customers ᴬ | 65,589 | 66,406 | (1.2) | (0.8) | | Customer funds | 80,749 | 72,993 | 10.6 | 11.1 | | Customer deposits ᴮ | 58,241 | 53,865 | 8.1 | 8.6 | | Mutual funds | 22,508 | 19,128 | 17.7 | 18.2 | | | | | | | | A.  Excluding reverse repos. | | | | | | B.  Excluding repos. | | | | | Annual report 2025520 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | OPENBANK | | | | | | EUR million | | | | | | Underlying income statement | 2025 | 2024 | % | % excl. FX | | Net interest income | 11,036 | 10,777 | 2.4 | 5.4 | | Net fee income | 1,479 | 1,508 | (2.0) | 0.4 | | Gains (losses) on financial transactions ᴬ | (11) | (4) | 168.4 | 126.4 | | Other operating income | 511 | 596 | (14.2) | (12.0) | | Total income | 13,015 | 12,877 | 1.1 | 3.9 | | Total costs | (5,680) | (5,576) | 1.9 | 4.2 | | Net operating income | 7,335 | 7,302 | 0.5 | 3.7 | | Net loan-loss provisions | (4,457) | (4,562) | (2.3) | 1.4 | | Other gains (losses) and provisions | (312) | (512) | (39.0) | (38.2) | | Profit before tax | 2,566 | 2,228 | 15.2 | 18.2 | | Tax on profit | (489) | (294) | 66.2 | 69.4 | | Profit from continuing operations | 2,077 | 1,934 | 7.4 | 10.4 | | Net profit from discontinued operations | — | — | — | — | | Consolidated profit | 2,077 | 1,934 | 7.4 | 10.4 | | Non-controlling interests | (336) | (275) | 22.1 | 23.5 | | Underlying profit attributable to the parent | 1,741 | 1,659 | 4.9 | 8.2 | | | | | | | | Business volumes | | | | | | Gross loans and advances to customers ᴮ | 211,894 | 215,164 | (1.5) | 1.9 | | Customer funds | 138,999 | 137,122 | 1.4 | 6.0 | | Customer deposits C | 129,909 | 128,933 | 0.8 | 5.3 | | Mutual funds | 9,089 | 8,189 | 11.0 | 17.1 | | Risk-weighted assets | 155,664 | 151,102 | 3.0 | | | | | | | | | Ratios (%), operating means and customers | | | | | | RoTE (post-AT1) | 8.5 | 8.8 | (0.3) | | | Efficiency ratio | 43.6 | 43.3 | 0.3 | | | NPL ratio | 5.32 | 5.07 | 0.24 | | | NPL coverage ratio | 71 | 74 | (2) | | | Number of employees | 30,751 | 29,903 | 2.8 | | | Number of total customers (thousands) | 26,709 | 25,041 | 6.7 | | | | | | | | | A.  Includes exchange differences. | | | | | | B.  Excluding reverse repos. | | | | | | C.  Excluding repos. | | | | | Annual report 2025521 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Openbank Europe | | | | | | EUR million | | | | | | Underlying income statement | 2025 | 2024 | % | % excl. FX | | Net interest income | 4,685 | 4,361 | 7.4 | 7.5 | | Net fee income | 804 | 902 | (10.9) | (10.8) | | Total income | 5,925 | 5,644 | 5.0 | 5.1 | | Total costs | (2,899) | (2,848) | 1.8 | 1.8 | | Net operating income | 3,026 | 2,796 | 8.2 | 8.4 | | Net loan-loss provisions | (1,363) | (1,209) | 12.7 | 12.9 | | Profit before tax | 1,398 | 1,131 | 23.6 | 23.4 | | | | | | | | Business volumes | | | | | | Gross loans and advances to customers ᴬ | 142,477 | 139,927 | 1.8 | 2.3 | | Customer funds | 87,559 | 85,876 | 2.0 | 2.0 | | Customer deposits ᴮ | 82,359 | 81,376 | 1.2 | 1.3 | | Mutual funds | 5,200 | 4,500 | 15.6 | 15.6 | | | | | | | | A.  Excluding reverse repos. | | | | | | B.  Excluding repos. | | | | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Openbank US | | | | | | EUR million | | | | | | Underlying income statement | 2025 | 2024 | % | % excl. FX | | Net interest income | 4,581 | 4,651 | (1.5) | 2.8 | | Net fee income | 339 | 303 | 11.8 | 16.6 | | Total income | 5,072 | 5,297 | (4.2) | (0.1) | | Total costs | (2,188) | (2,225) | (1.7) | 2.6 | | Net operating income | 2,884 | 3,072 | (6.1) | (2.0) | | Net loan-loss provisions | (2,140) | (2,466) | (13.2) | (9.5) | | Profit before tax | 699 | 551 | 26.9 | 32.4 | | | | | | | | Business volumes | | | | | | Gross loans and advances to customers ᴬ | 47,402 | 56,266 | (15.8) | (4.7) | | Customer funds | 50,333 | 51,230 | (1.8) | 11.2 | | Customer deposits ᴮ | 46,444 | 47,541 | (2.3) | 10.5 | | Mutual funds | 3,889 | 3,689 | 5.4 | 19.3 | | | | | | | | A.  Excluding reverse repos. | | | | | | B.  Excluding repos. | | | | | Annual report 2025522 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | CORPORATE & INVESTMENT BANKING | | | | | | EUR million | | | | | | Underlying income statement | 2025 | 2024 | % | % excl. FX | | Net interest income | 3,824 | 3,779 | 1.2 | 5.7 | | Net fee income | 2,552 | 2,415 | 5.7 | 8.8 | | Gains (losses) on financial transactions ᴬ | 1,281 | 1,568 | (18.3) | (15.9) | | Other operating income | 359 | 136 | 164.5 | 159.1 | | Total income | 8,016 | 7,897 | 1.5 | 5.2 | | Total costs | (3,752) | (3,922) | (4.3) | (1.3) | | Net operating income | 4,264 | 3,975 | 7.3 | 11.5 | | Net loan-loss provisions | (278) | (141) | 96.5 | 97.9 | | Other gains (losses) and provisions | (37) | (19) | 98.1 | 99.3 | | Profit before tax | 3,949 | 3,815 | 3.5 | 7.8 | | Tax on profit | (1,114) | (1,023) | 8.9 | 13.6 | | Profit from continuing operations | 2,835 | 2,792 | 1.5 | 5.6 | | Net profit from discontinued operations | — | — | — | — | | Consolidated profit | 2,835 | 2,792 | 1.5 | 5.6 | | Non-controlling interests | (127) | (153) | (17.2) | (11.6) | | Underlying profit attributable to the parent | 2,708 | 2,639 | 2.6 | 6.6 | | | | | | | | Business volumes | | | | | | Gross loans and advances to customers ᴮ | 146,065 | 130,840 | 11.6 | 15.8 | | Customer funds | 149,731 | 147,492 | 1.5 | 4.0 | | Customer deposits C | 137,267 | 133,433 | 2.9 | 5.6 | | Mutual funds | 12,464 | 14,059 | (11.3) | (10.8) | | Risk-weighted assets | 103,485 | 117,010 | (11.6) | | | | | | | | | Ratios (%), and operating means | | | | | | RoTE (post-AT1) | 17.8 | 16.3 | 1.6 | | | Efficiency ratio | 46.8 | 49.7 | (2.9) | | | NPL ratio | 0.72 | 0.86 | (0.14) | | | NPL coverage ratio | 47 | 39 | 8 | | | Number of employees | 13,266 | 12,652 | 4.9 | | | | | | | | | A.  Includes exchange differences. | | | | | | B.  Excluding reverse repos. | | | | | | C.  Excluding repos. | | | | | Annual report 2025523 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | WEALTH MANAGEMENT & INSURANCE | | | | | | EUR million | | | | | | Underlying income statement | 2025 | 2024 | % | % excl. FX | | Net interest income | 1,335 | 1,591 | (16.0) | (14.2) | | Net fee income | 1,642 | 1,442 | 13.8 | 17.0 | | Gains (losses) on financial transactions ᴬ | 512 | 256 | 100.2 | 105.2 | | Other operating income | 552 | 298 | 85.4 | 98.7 | | Total income | 4,042 | 3,587 | 12.7 | 15.9 | | Total costs | (1,444) | (1,403) | 2.9 | 6.0 | | Net operating income | 2,598 | 2,183 | 19.0 | 22.2 | | Net loan-loss provisions | (20) | (42) | (51.4) | (51.2) | | Other gains (losses) and provisions | (14) | (8) | 66.6 | 67.9 | | Profit before tax | 2,564 | 2,134 | 20.2 | 23.5 | | Tax on profit | (532) | (509) | 4.4 | 6.5 | | Profit from continuing operations | 2,032 | 1,624 | 25.1 | 28.9 | | Net profit from discontinued operations | — | — | — | — | | Consolidated profit | 2,032 | 1,624 | 25.1 | 28.9 | | Non-controlling interests | (50) | (40) | 23.5 | 31.5 | | Underlying profit attributable to the parent | 1,983 | 1,584 | 25.2 | 28.9 | | | | | | | | Business volumes | | | | | | Gross loans and advances to customers ᴮ | 26,680 | 24,643 | 8.3 | 13.2 | | Customer funds | 181,509 | 161,304 | 12.5 | 15.0 | | Customer deposits C | 58,051 | 55,736 | 4.2 | 7.1 | | Mutual funds | 123,458 | 105,568 | 16.9 | 19.1 | | Risk-weighted assets | 18,447 | 11,709 | 57.6 | | | Assets under management | 540,585 | 483,695 | 11.8 | 13.6 | | Gross written premiums | 10,632 | 10,752 | (1.1) | 4.5 | | | | | | | | Ratios (%), operating means and customers | | | | | | RoTE (post-AT1) | 61.5 | 68.2 | (6.7) | | | Efficiency ratio | 35.7 | 39.1 | (3.4) | | | NPL ratio | 0.86 | 0.98 | (0.12) | | | NPL coverage ratio | 71 | 68 | 4 | | | Number of employees | 7,263 | 7,425 | (2.2) | | | Number of Private Banking customers (thousands) | 297 | 283 | 5.0 | | | | | | | | | A.  Includes exchange differences. | | | | | | B.  Excluding reverse repos. | | | | | | C.  Excluding repos. | | | | | Annual report 2025524 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | PAYMENT SOLUTIONS | | | | | | EUR million | | | | | | Underlying income statement | 2025 | 2024 | % | % excl. FX | | Net interest income | 167 | 132 | 27.0 | 35.7 | | Net fee income | 1,059 | 958 | 10.5 | 16.4 | | Gains (losses) on financial transactions ᴬ | (24) | 0 | — | — | | Other operating income | 171 | 150 | 14.3 | 14.9 | | Total income | 1,373 | 1,240 | 10.8 | 16.2 | | Total costs | (1,203) | (1,209) | (0.5) | 2.4 | | Net operating income | 170 | 31 | 451.7 | — | | Net loan-loss provisions | (24) | (16) | 48.5 | 55.1 | | Other gains (losses) and provisions | (12) | (247) | (95.2) | (95.2) | | Profit before tax | 134 | (233) | — | — | | Tax on profit | (19) | (57) | (65.9) | (60.1) | | Profit from continuing operations | 115 | (290) | — | — | | Net profit from discontinued operations | — | — | — | — | | Consolidated profit | 115 | (290) | — | — | | Non-controlling interests | (19) | (9) | 101.1 | 120.7 | | Underlying profit attributable to the parent | 96 | (299) | — | — | | | | | | | | Business volumes | | | | | | Gross loans and advances to customers ᴮ | 1,002 | 1,087 | (7.8) | (7.9) | | Customer funds | 1,392 | 1,038 | 34.2 | 34.2 | | Customer deposits C | 1,392 | 1,038 | 34.2 | 34.2 | | Mutual funds | — | — | — | — | | Risk-weighted assets | 4,421 | 4,898 | (9.7) | | | | | | | | | Ratios (%) and operating means | | | | | | EBITDA margin | 34.5 | 27.5 | 7.0 | | | NPL ratio | 87.6 | 97.5 | (9.9) | | | Number of employees | 8,059 | 8,382 | (3.9) | | | | | | | | | A.  Includes exchange differences. | | | | | | B.  Excluding reverse repos. | | | | | | C.  Excluding repos. | | | | | Annual report 2025525 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Secondary segments | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | EUR million | | | | | | | | | | | | | | Spain | | | | | UK | | | | | Underlying income statement | | 2025 | 2024 | % | | | 2025 | 2024 | % | % excl. FX | | Net interest income | | 7,305 | 7,256 | 0.7 | | | 5,008 | 4,950 | 1.2 | 2.4 | | Net fee income | | 3,022 | 2,867 | 5.4 | | | 369 | 283 | 30.3 | 31.8 | | Gains (losses) on financial transactions A | | 841 | 1,100 | (23.6) | | | (100) | (18) | 445.8 | 452.4 | | Other operating income | | 720 | 358 | 101.4 | | | (245) | (203) | 20.8 | 22.2 | | Total income | | 11,887 | 11,580 | 2.6 | | | 5,032 | 5,011 | 0.4 | 1.6 | | Total costs | | (4,465) | (4,509) | (1.0) | | | (2,937) | (3,050) | (3.7) | (2.5) | | Net operating income | | 7,423 | 7,071 | 5.0 | | | 2,095 | 1,962 | 6.8 | 8.1 | | Net loan-loss provisions | | (1,142) | (1,259) | (9.3) | | | (177) | (64) | 177.4 | 180.7 | | Other gains (losses) and provisions | | (198) | (372) | (46.8) | | | (124) | (104) | 19.4 | 20.8 | | Profit before tax | | 6,083 | 5,440 | 11.8 | | | 1,794 | 1,794 | 0.0 | 1.2 | | Tax on profit | | (1,811) | (1,678) | 7.9 | | | (486) | (488) | (0.3) | 0.9 | | Profit from continuing operations | | 4,272 | 3,763 | 13.5 | | | 1,307 | 1,306 | 0.1 | 1.3 | | Net profit from discontinued operations | | — | — | — | | | — | — | — | — | | Consolidated profit | | 4,272 | 3,763 | 13.5 | | | 1,307 | 1,306 | 0.1 | 1.3 | | Non-controlling interests | | 0 | 0 | (2.5) | | | — | — | — | — | | Underlying profit attributable to the parent | | 4,272 | 3,762 | 13.5 | | | 1,307 | 1,306 | 0.1 | 1.3 | | | | | | | | | | | | | | Balance sheet | | | | | | | | | | | | Loans and advances to customers | | 264,950 | 246,897 | 7.3 | | | 242,624 | 246,453 | (1.6) | 3.6 | | Cash, central banks and credit institutions | | 88,904 | 97,838 | (9.1) | | | 55,335 | 54,787 | 1.0 | 6.3 | | Debt instruments | | 120,671 | 94,519 | 27.7 | | | 10,570 | 15,120 | (30.1) | (26.4) | | Other financial assets | | 51,675 | 48,132 | 7.4 | | | 270 | 390 | (30.8) | (27.2) | | Other asset accounts | | 19,361 | 22,341 | (13.3) | | | 4,048 | 3,382 | 19.7 | 26.0 | | Total assets | | 545,561 | 509,726 | 7.0 | | | 312,846 | 320,132 | (2.3) | 2.9 | | Customer deposits | | 354,943 | 323,425 | 9.7 | | | 225,708 | 230,408 | (2.0) | 3.1 | | Central banks and credit institutions | | 54,996 | 57,218 | (3.9) | | | 18,326 | 25,665 | (28.6) | (24.8) | | Marketable debt securities | | 29,957 | 27,385 | 9.4 | | | 51,231 | 47,933 | 6.9 | 12.5 | | Other financial liabilities | | 63,188 | 59,976 | 5.4 | | | 2,441 | 2,500 | (2.4) | 2.8 | | Other liabilities accounts | | 22,268 | 21,163 | 5.2 | | | 2,277 | 1,733 | 31.4 | 38.3 | | Total liabilities | | 525,352 | 489,168 | 7.4 | | | 299,984 | 308,239 | (2.7) | 2.4 | | Total equity | | 20,209 | 20,558 | (1.7) | | | 12,863 | 11,893 | 8.2 | 13.8 | | | | | | | | | | | | | | Memorandum items: | | | | | | | | | | | | Gross loans and advances to customers B | | 237,385 | 225,759 | 5.1 | | | 228,273 | 236,496 | (3.5) | 1.6 | | Customer funds | | 429,464 | 399,999 | 7.4 | | | 227,160 | 230,479 | (1.4) | 3.7 | | Customer deposits C | | 322,070 | 306,389 | 5.1 | | | 219,440 | 222,835 | (1.5) | 3.7 | | Mutual funds | | 107,394 | 93,609 | 14.7 | | | 7,719 | 7,643 | 1.0 | 6.3 | | | | | | | | | | | | | | Ratios (%), operating means and customers | | | | | | | | | | | | RoTE (post-AT1) | | 20.4 | 18.3 | 2.2 | | | 10.2 | 10.6 | (0.4) | | | Efficiency ratio | | 37.6 | 38.9 | (1.4) | | | 58.4 | 60.9 | (2.5) | | | NPL ratio | | 1.94 | 2.66 | (0.73) | | | 1.08 | 1.33 | (0.25) | | | NPL coverage ratio | | 55 | 53 | 2 | | | 33 | 29 | 3 | | | Number of branches | | 1,630 | 1,827 | (10.8) | | | 363 | 444 | (18.2) | | | Number of total customers (thousands) | | 15,362 | 15,307 | 0.4 | | | 22,720 | 22,541 | 0.8 | | | Number of active customers (thousands) | | 9,242 | 8,842 | 4.5 | | | 13,547 | 13,646 | (0.7) | | | | | | | | | | | | | | | A. Includes exchange differences. | | | | | | | | | | | | B. Excluding reverse repos. | | | | | | | | | | | | C. Excluding repos. | | | | | | | | | | | Annual report 2025526 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | EUR million | | | | | | | | | | | | | | Portugal | | | | | Openbank Europe | | | | | Underlying income statement | | 2025 | 2024 | % | | | 2025 | 2024 | % | % excl. FX | | Net interest income | | 1,346 | 1,548 | (13.0) | | | 4,685 | 4,361 | 7.4 | 7.5 | | Net fee income | | 506 | 467 | 8.2 | | | 804 | 902 | (10.9) | (10.8) | | Gains (losses) on financial transactions A | | 70 | 45 | 56.9 | | | (39) | (24) | 60.8 | 61.9 | | Other operating income | | 33 | 5 | 569.5 | | | 474 | 405 | 17.1 | 17.5 | | Total income | | 1,956 | 2,065 | (5.3) | | | 5,925 | 5,644 | 5.0 | 5.1 | | Total costs | | (544) | (574) | (5.2) | | | (2,899) | (2,848) | 1.8 | 1.8 | | Net operating income | | 1,412 | 1,492 | (5.4) | | | 3,026 | 2,796 | 8.2 | 8.4 | | Net loan-loss provisions | | 8 | (11) | — | | | (1,363) | (1,209) | 12.7 | 12.9 | | Other gains (losses) and provisions | | (3) | — | — | | | (266) | (456) | (41.7) | (41.1) | | Profit before tax | | 1,417 | 1,481 | (4.3) | | | 1,398 | 1,131 | 23.6 | 23.4 | | Tax on profit | | (405) | (478) | (15.2) | | | (322) | (255) | 25.9 | 25.2 | | Profit from continuing operations | | 1,011 | 1,003 | 0.8 | | | 1,076 | 876 | 22.9 | 22.9 | | Net profit from discontinued operations | | — | — | — | | | — | — | — | — | | Consolidated profit | | 1,011 | 1,003 | 0.8 | | | 1,076 | 876 | 22.9 | 22.9 | | Non-controlling interests | | (2) | (2) | (18.9) | | | (304) | (234) | 30.3 | 30.3 | | Underlying profit attributable to the parent | | 1,010 | 1,001 | 0.9 | | | 772 | 642 | 20.2 | 20.2 | | | | | | | | | | | | | | Balance sheet | | | | | | | | | | | | Loans and advances to customers | | 41,260 | 38,410 | 7.4 | | | 139,322 | 137,038 | 1.7 | 2.1 | | Cash, central banks and credit institutions | | 2,744 | 3,873 | (29.2) | | | 16,078 | 19,185 | (16.2) | (15.6) | | Debt instruments | | 15,998 | 15,010 | 6.6 | | | 8,510 | 6,310 | 34.9 | 34.6 | | Other financial assets | | 1,243 | 1,129 | 10.1 | | | 126 | 128 | (1.3) | (1.3) | | Other asset accounts | | 1,090 | 1,109 | (1.7) | | | 12,088 | 11,115 | 8.8 | 9.6 | | Total assets | | 62,334 | 59,530 | 4.7 | | | 176,125 | 173,775 | 1.4 | 1.8 | | Customer deposits | | 40,576 | 38,304 | 5.9 | | | 82,359 | 81,376 | 1.2 | 1.3 | | Central banks and credit institutions | | 9,357 | 8,813 | 6.2 | | | 26,820 | 28,120 | (4.6) | (2.5) | | Marketable debt securities | | 5,809 | 4,973 | 16.8 | | | 45,494 | 43,137 | 5.5 | 5.6 | | Other financial liabilities | | 304 | 339 | (10.3) | | | 2,014 | 1,918 | 5.0 | 5.2 | | Other liabilities accounts | | 2,916 | 3,056 | (4.6) | | | 6,208 | 5,714 | 8.7 | 9.0 | | Total liabilities | | 58,961 | 55,485 | 6.3 | | | 162,896 | 160,264 | 1.6 | 2.1 | | Total equity | | 3,373 | 4,046 | (16.6) | | | 13,229 | 13,512 | (2.1) | (1.6) | | | | | | | | | | | | | | Memorandum items: | | | | | | | | | | | | Gross loans and advances to customers B | | 41,980 | 39,143 | 7.2 | | | 142,477 | 139,927 | 1.8 | 2.3 | | Customer funds | | 46,201 | 43,186 | 7.0 | | | 87,559 | 85,876 | 2.0 | 2.0 | | Customer deposits C | | 40,576 | 38,304 | 5.9 | | | 82,359 | 81,376 | 1.2 | 1.3 | | Mutual funds | | 5,625 | 4,882 | 15.2 | | | 5,200 | 4,500 | 15.6 | 15.6 | | | | | | | | | | | | | | Ratios (%), operating means and customers | | | | | | | | | | | | RoTE (post-AT1) | | 30.3 | 25.0 | 5.3 | | | 6.7 | 5.5 | 1.2 | | | Efficiency ratio | | 27.8 | 27.8 | 0.0 | | | 48.9 | 50.5 | (1.5) | | | NPL ratio | | 1.99 | 2.27 | (0.29) | | | 2.53 | 2.50 | 0.03 | | | NPL coverage ratio | | 81 | 78 | 3 | | | 87 | 83 | 5 | | | Number of branches | | 308 | 374 | (17.6) | | | 298 | 326 | (8.6) | | | Number of total customers (thousands) | | 2,971 | 2,989 | (0.6) | | | 19,893 | 19,550 | 1.8 | | | Number of active customers (thousands) | | 1,945 | 1,905 | 2.1 | | | | | | | | | | | | | | | | | | | | A. Includes exchange differences. | | | | | | | | | | | | B. Excluding reverse repos. | | | | | | | | | | | | C. Excluding repos. | | | | | | | | | | | Annual report 2025527 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | EUR million | | | | | | | | | | | | | | | US | | | | | | Mexico | | | | | Underlying income statement | | 2025 | 2024 | % | % excl. FX | | | 2025 | 2024 | % | % excl. FX | | Net interest income | | 5,888 | 5,693 | 3.4 | 7.9 | | | 4,554 | 4,631 | (1.7) | 8.0 | | Net fee income | | 1,328 | 1,152 | 15.3 | 20.3 | | | 1,454 | 1,385 | 5.0 | 15.3 | | Gains (losses) on financial transactions A | | 547 | 371 | 47.7 | 54.1 | | | 427 | 396 | 7.7 | 18.3 | | Other operating income | | 165 | 365 | (54.7) | (52.7) | | | (130) | (133) | (2.5) | 7.1 | | Total income | | 7,929 | 7,580 | 4.6 | 9.1 | | | 6,305 | 6,278 | 0.4 | 10.3 | | Total costs | | (3,890) | (3,965) | (1.9) | 2.4 | | | (2,730) | (2,727) | 0.1 | 9.9 | | Net operating income | | 4,039 | 3,615 | 11.7 | 16.6 | | | 3,575 | 3,551 | 0.7 | 10.6 | | Net loan-loss provisions | | (2,244) | (2,507) | (10.5) | (6.6) | | | (1,239) | (1,277) | (3.0) | 6.5 | | Other gains (losses) and provisions | | (47) | (55) | (14.5) | (10.8) | | | — | — | — | — | | Profit before tax | | 1,748 | 1,053 | 66.0 | 73.2 | | | 2,336 | 2,274 | 2.7 | 12.8 | | Tax on profit | | (207) | 56 | — | — | | | (627) | (598) | 4.9 | 15.2 | | Profit from continuing operations | | 1,541 | 1,109 | 39.0 | 45.0 | | | 1,709 | 1,676 | 2.0 | 12.0 | | Net profit from discontinued operations | | — | — | — | — | | | — | — | — | — | | Consolidated profit | | 1,541 | 1,109 | 39.0 | 45.0 | | | 1,709 | 1,676 | 2.0 | 12.0 | | Non-controlling interests | | — | — | — | — | | | (4) | (5) | (9.0) | (0.1) | | Underlying profit attributable to the parent | | 1,541 | 1,109 | 39.0 | 45.0 | | | 1,705 | 1,671 | 2.0 | 12.0 | | | | | | | | | | | | | | | Balance sheet | | | | | | | | | | | | | Loans and advances to customers | | 132,659 | 134,856 | (1.6) | 11.3 | | | 48,083 | 45,054 | 6.7 | 4.6 | | Cash, central banks and credit institutions | | 21,318 | 28,200 | (24.4) | (14.5) | | | 11,569 | 10,945 | 5.7 | 3.6 | | Debt instruments | | 38,411 | 27,042 | 42.0 | 60.7 | | | 32,066 | 30,092 | 6.6 | 4.4 | | Other financial assets | | 3,159 | 2,821 | 12.0 | 26.7 | | | 4,731 | 5,785 | (18.2) | (19.9) | | Other asset accounts | | 11,171 | 16,058 | (30.4) | (21.3) | | | 5,778 | 5,745 | 0.6 | (1.5) | | Total assets | | 206,718 | 208,978 | (1.1) | 11.9 | | | 102,227 | 97,621 | 4.7 | 2.6 | | Customer deposits | | 122,000 | 125,403 | (2.7) | 10.1 | | | 55,595 | 49,836 | 11.6 | 9.3 | | Central banks and credit institutions | | 34,934 | 26,794 | 30.4 | 47.5 | | | 17,984 | 17,260 | 4.2 | 2.1 | | Marketable debt securities | | 26,433 | 31,783 | (16.8) | (5.9) | | | 9,316 | 9,632 | (3.3) | (5.2) | | Other financial liabilities | | 6,255 | 5,223 | 19.8 | 35.5 | | | 7,586 | 9,640 | (21.3) | (22.9) | | Other liabilities accounts | | 3,085 | 3,683 | (16.2) | (5.2) | | | 3,258 | 3,115 | 4.6 | 2.5 | | Total liabilities | | 192,707 | 192,886 | (0.1) | 13.0 | | | 93,740 | 89,483 | 4.8 | 2.7 | | Total equity | | 14,011 | 16,091 | (12.9) | (1.5) | | | 8,487 | 8,138 | 4.3 | 2.2 | | | | | | | | | | | | | | | Memorandum items: | | | | | | | | | | | | | Gross loans and advances to customers B | | 108,950 | 117,511 | (7.3) | 4.9 | | | 49,442 | 44,715 | 10.6 | 8.4 | | Customer funds | | 103,178 | 108,246 | (4.7) | 7.9 | | | 68,201 | 61,160 | 11.5 | 9.3 | | Customer deposits C | | 87,686 | 93,545 | (6.3) | 6.1 | | | 45,498 | 41,528 | 9.6 | 7.4 | | Mutual funds | | 15,492 | 14,702 | 5.4 | 19.2 | | | 22,703 | 19,632 | 15.6 | 13.3 | | | | | | | | | | | | | | | Ratios (%), operating means and customers | | | | | | | | | | | | | RoTE (post-AT1) | | 10.2 | 6.9 | 3.2 | | | | 22.0 | 19.6 | 2.3 | | | Efficiency ratio | | 49.1 | 52.3 | (3.2) | | | | 43.3 | 43.4 | (0.1) | | | NPL ratio | | 4.82 | 4.68 | 0.14 | | | | 2.65 | 2.71 | (0.05) | | | NPL coverage ratio | | 55 | 64 | (9) | | | | 105 | 100 | 4 | | | Number of branches | | 376 | 405 | (7.2) | | | | 1,314 | 1,356 | (3.1) | | | Number of total customers (thousands) | | 4,369 | 4,474 | (2.4) | | | | 22,577 | 21,289 | 6.1 | | | Number of active customers (thousands) | | 4,169 | 4,308 | (3.2) | | | | 11,976 | 10,871 | 10.2 | | | | | | | | | | | | | | | | A. Includes exchange differences. | | | | | | | | | | | | | B. Excluding reverse repos. | | | | | | | | | | | | | C. Excluding repos. | | | | | | | | | | | | Annual report 2025528 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | EUR million | | | | | | | | | | | | | | | Brazil | | | | | | Chile | | | | | Underlying income statement | | 2025 | 2024 | % | % excl. FX | | | 2025 | 2024 | % | % excl. FX | | Net interest income | | 9,380 | 10,121 | (7.3) | 0.6 | | | 1,917 | 1,822 | 5.2 | 10.7 | | Net fee income | | 3,193 | 3,414 | (6.5) | 1.5 | | | 582 | 551 | 5.8 | 11.2 | | Gains (losses) on financial transactions A | | (64) | (37) | 71.7 | 86.3 | | | 230 | 238 | (3.4) | 1.6 | | Other operating income | | 93 | 39 | 139.5 | 160.0 | | | (15) | (18) | (16.4) | (12.1) | | Total income | | 12,602 | 13,536 | (6.9) | 1.0 | | | 2,714 | 2,592 | 4.7 | 10.1 | | Total costs | | (4,957) | (5,219) | (5.0) | 3.1 | | | (919) | (942) | (2.5) | 2.6 | | Net operating income | | 7,645 | 8,318 | (8.1) | (0.2) | | | 1,795 | 1,650 | 8.8 | 14.4 | | Net loan-loss provisions | | (4,409) | (4,487) | (1.7) | 6.6 | | | (531) | (497) | 6.9 | 12.4 | | Other gains (losses) and provisions | | (11) | 0 | — | — | | | (32) | (42) | (24.7) | (20.8) | | Profit before tax | | 3,224 | 3,830 | (15.8) | (8.6) | | | 1,232 | 1,111 | 11.0 | 16.7 | | Tax on profit | | (836) | (1,165) | (28.2) | (22.1) | | | (189) | (211) | (10.5) | (5.9) | | Profit from continuing operations | | 2,388 | 2,665 | (10.4) | (2.8) | | | 1,043 | 899 | 16.0 | 22.0 | | Net profit from discontinued operations | | — | — | — | — | | | — | — | — | — | | Consolidated profit | | 2,388 | 2,665 | (10.4) | (2.8) | | | 1,043 | 899 | 16.0 | 22.0 | | Non-controlling interests | | (220) | (243) | (9.3) | (1.6) | | | (314) | (271) | 16.0 | 22.0 | | Underlying profit attributable to the parent | | 2,168 | 2,422 | (10.5) | (2.9) | | | 729 | 629 | 16.0 | 22.0 | | | | | | | | | | | | | | | Balance sheet | | | | | | | | | | | | | Loans and advances to customers | | 87,653 | 88,620 | (1.1) | (0.6) | | | 39,924 | 40,332 | (1.0) | 1.6 | | Cash, central banks and credit institutions | | 49,450 | 46,745 | 5.8 | 6.3 | | | 5,218 | 5,759 | (9.4) | (7.0) | | Debt instruments | | 46,658 | 45,670 | 2.2 | 2.6 | | | 9,385 | 7,993 | 17.4 | 20.5 | | Other financial assets | | 11,772 | 10,632 | 10.7 | 11.2 | | | 11,489 | 13,554 | (15.2) | (13.0) | | Other asset accounts | | 13,919 | 13,844 | 0.5 | 1.0 | | | 2,189 | 2,796 | (21.7) | (19.7) | | Total assets | | 209,453 | 205,510 | 1.9 | 2.4 | | | 68,205 | 70,434 | (3.2) | (0.6) | | Customer deposits | | 92,256 | 93,994 | (1.8) | (1.4) | | | 29,503 | 30,181 | (2.2) | 0.3 | | Central banks and credit institutions | | 32,377 | 30,878 | 4.9 | 5.3 | | | 8,778 | 8,133 | 7.9 | 10.8 | | Marketable debt securities | | 29,161 | 25,351 | 15.0 | 15.6 | | | 9,703 | 10,403 | (6.7) | (4.3) | | Other financial liabilities | | 33,757 | 34,215 | (1.3) | (0.9) | | | 12,322 | 14,323 | (14.0) | (11.7) | | Other liabilities accounts | | 5,829 | 5,582 | 4.4 | 4.9 | | | 2,299 | 1,942 | 18.4 | 21.5 | | Total liabilities | | 193,380 | 190,020 | 1.8 | 2.2 | | | 62,604 | 64,983 | (3.7) | (1.1) | | Total equity | | 16,073 | 15,490 | 3.8 | 4.2 | | | 5,601 | 5,451 | 2.8 | 5.5 | | | | | | | | | | | | | | | Memorandum items: | | | | | | | | | | | | | Gross loans and advances to customers B | | 93,030 | 93,785 | (0.8) | (0.3) | | | 40,986 | 41,405 | (1.0) | 1.6 | | Customer funds | | 132,580 | 129,881 | 2.1 | 2.6 | | | 42,256 | 43,383 | (2.6) | 0.0 | | Customer deposits C | | 80,449 | 81,378 | (1.1) | (0.7) | | | 28,293 | 30,060 | (5.9) | (3.4) | | Mutual funds | | 52,132 | 48,503 | 7.5 | 8.0 | | | 13,963 | 13,324 | 4.8 | 7.6 | | | | | | | | | | | | | | | Ratios (%), operating means and customers | | | | | | | | | | | | | RoTE (post-AT1) | | 15.3 | 16.8 | (1.5) | | | | 19.7 | 16.3 | 3.4 | | | Efficiency ratio | | 39.3 | 38.6 | 0.8 | | | | 33.9 | 36.4 | (2.5) | | | NPL ratio | | 6.76 | 6.10 | 0.66 | | | | 5.73 | 5.37 | 0.36 | | | NPL coverage ratio | | 81 | 79 | 2 | | | | 48 | 50 | (2) | | | Number of branches | | 1,618 | 2,202 | (26.5) | | | | 228 | 237 | (3.8) | | | Number of total customers (thousands) | | 73,948 | 69,455 | 6.5 | | | | 4,608 | 4,311 | 6.9 | | | Number of active customers (thousands) | | 33,966 | 33,123 | 2.5 | | | | 2,693 | 2,556 | 5.4 | | | | | | | | | | | | | | | | A. Includes exchange differences. | | | | | | | | | | | | | B. Excluding reverse repos. | | | | | | | | | | | | | C. Excluding repos. | | | | | | | | | | | | Annual report 2025529 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | EUR million | | | | | | | | | | | | | | Argentina | | | | | Rest of the Group | | | | | Underlying income statement | | 2025 | 2024 | % | | | 2025 | 2024 | % | % excl. FX | | Net interest income | | 1,727 | 2,919 | (40.8) | | | 1,080 | 832 | 29.8 | 36.1 | | Net fee income | | 788 | 602 | 30.9 | | | 908 | 722 | 25.8 | 28.8 | | Gains (losses) on financial transactions A | | 229 | 229 | 0.1 | | | 296 | 326 | (9.1) | (6.2) | | Other operating income | | (510) | (1,263) | (59.6) | | | 25 | 9 | 187.7 | 175.7 | | Total income | | 2,235 | 2,487 | (10.2) | | | 2,309 | 1,889 | 22.3 | 26.7 | | Total costs | | (978) | (1,337) | (26.9) | | | (1,676) | (1,643) | 2.0 | 4.1 | | Net operating income | | 1,257 | 1,150 | 9.3 | | | 634 | 246 | 158.1 | 197.3 | | Net loan-loss provisions | | (574) | (284) | 101.8 | | | (260) | (230) | 13.1 | 17.9 | | Other gains (losses) and provisions | | (33) | (39) | (14.7) | | | (45) | (263) | (82.7) | (82.7) | | Profit before tax | | 650 | 827 | (21.4) | | | 328 | (248) | — | — | | Tax on profit | | (216) | (161) | 34.6 | | | (29) | (37) | (22.6) | (9.1) | | Profit from continuing operations | | 434 | 666 | (34.9) | | | 300 | (285) | — | — | | Net profit from discontinued operations | | — | — | — | | | — | — | — | — | | Consolidated profit | | 434 | 666 | (34.9) | | | 300 | (285) | — | — | | Non-controlling interests | | (1) | (1) | (39.8) | | | 1 | 5 | (89.3) | (87.5) | | Underlying profit attributable to the parent | | 433 | 665 | (34.9) | | | 300 | (280) | — | — | | | | | | | | | | | | | | Balance sheet | | | | | | | | | | | | Loans and advances to customers | | 8,032 | 7,684 | 4.5 | | | 25,315 | 24,905 | 1.6 | 8.2 | | Cash, central banks and credit institutions | | 3,724 | 4,901 | (24.0) | | | 12,912 | 8,178 | 57.9 | 64.7 | | Debt instruments | | 2,230 | 2,654 | (16.0) | | | 4,452 | 10,677 | (58.3) | (57.8) | | Other financial assets | | 16 | 23 | (28.5) | | | 2,387 | 3,041 | (21.5) | (16.9) | | Other asset accounts | | 1,078 | 978 | 10.2 | | | 3,157 | 2,930 | 7.7 | 8.1 | | Total assets | | 15,080 | 16,240 | (7.1) | | | 48,222 | 49,732 | (3.0) | 1.3 | | Customer deposits | | 9,959 | 11,293 | (11.8) | | | 26,913 | 19,955 | 34.9 | 42.5 | | Central banks and credit institutions | | 685 | 852 | (19.5) | | | 8,249 | 19,309 | (57.3) | (55.8) | | Marketable debt securities | | 258 | 158 | 63.4 | | | 4,508 | 898 | 401.8 | 408.3 | | Other financial liabilities | | 1,060 | 968 | 9.5 | | | 2,402 | 2,694 | (10.9) | (4.5) | | Other liabilities accounts | | 547 | 476 | 14.9 | | | 1,543 | 1,514 | 1.9 | 2.3 | | Total liabilities | | 12,510 | 13,746 | (9.0) | | | 43,614 | 44,371 | (1.7) | 2.7 | | Total equity | | 2,570 | 2,494 | 3.1 | | | 4,608 | 5,360 | (14.0) | (10.3) | | | | | | | | | | | | | | Memorandum items: | | | | | | | | | | | | Gross loans and advances to customers B | | 8,611 | 7,938 | 8.5 | | | 25,796 | 25,285 | 2.0 | 8.5 | | Customer funds | | 15,894 | 17,047 | (6.8) | | | 45,916 | 34,204 | 34.2 | 40.8 | | Customer deposits C | | 9,959 | 11,293 | (11.8) | | | 26,691 | 19,527 | 36.7 | 44.6 | | Mutual funds | | 5,934 | 5,754 | 3.1 | | | 19,225 | 14,677 | 31.0 | 35.9 | | | | | | | | | | | | | | Ratios (%), operating means and customers | | | | | | | | | | | | RoTE (post-AT1) | | 20.2 | 34.5 | (14.3) | | | | | | | | Efficiency ratio | | 43.8 | 53.8 | (10.0) | | | | | | | | NPL ratio | | 7.68 | 2.06 | 5.62 | | | | | | | | NPL coverage ratio | | 90 | 177 | (87) | | | | | | | | Number of branches D | | 391 | 409 | (4.4) | | | | | | | | Number of total customers (thousands) | | 5,412 | 5,117 | 5.8 | | | | | | | | Number of active customers (thousands) | | 3,772 | 3,674 | 2.7 | | | | | | | | | | | | | | | | | | | | A. Includes exchange differences. | | | | | | | | | | | | B. Excluding reverse repos. | | | | | | | | | | | | C. Excluding repos. | | | | | | | | | | | | D. In Argentina, we have included the CartaSur points of sale and the banking service points in 2025 and 2024 figures and all previous periods. | | | | | | | | | | | Annual report 2025530 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 9.2 Alternative performance measures (APMs) of the new reporting structure #### Profitability and efficiency ratios The purpose of the profitability ratios is to measure the ratio of profit to equity, to tangible equity, to assets and to risk-weighted assets. The efficiency ratio measures how much costs are needed to generate revenue. The results related to activity in Poland affected by the Poland disposal are recorded in the 'non-recurring items' line within the underlying income statement. Profitability ratios are therefore also presented on an underlying basis. Additionally, the definition of efficiency has been adjusted to use the new total costs line. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Ratio | | Formula | | Relevance of the metric | | RoE | | Profit attributable to the parent | | This ratio measures the return that shareholders obtain on the funds invested in the bank and as such measures the bank’s ability to pay shareholders. | | (Return on Equity) | | Average stockholders’ equity A (excl. minority interests) | | | Underlying RoE | | Underlying profit attributable to the parent | | This ratio measures the return that shareholders obtain on the funds invested in the bank excluding results from operations outside the ordinary course of business. | | | Average stockholders’ equity A (excl. minority interests) | | | RoTE (post-AT1) | | Profit attributable to the parent minus AT1 costs B | | This indicator is used to assess the profitability of a company as a percentage of its tangible equity, deducting AT1 issuance costs from the numerator. It is measured as the return that shareholders receive as a percentage of the funds invested in the bank less intangible assets. | | (Return on Tangible Equity) | | Average stockholders' equity A (excl. minority interests) - intangible assets | | | Underlying RoTE (post-AT1) | | Underlying profit attributable to the parent minus AT1 costs B | | As with RoTE (post-AT1), this indicator is used to assess the profitability of the tangible equity of a company of a company, deducting AT1 issuance costs from the numerator, but excluding results from operations outside the ordinary course of business (i.e. arising from underlying activities). | | | | Average stockholders' equity A (excl. minority interests) - intangible assets | | | RoA | | Consolidated profit | | This metric measures the profitability of a company as a percentage of its total assets. It is an indicator that reflects the efficiency of the bank’s total assets in generating profit over a given period. | | (Return on Assets) | | Average total assets | | | Underlying RoA | | Underlying consolidated profit | | This metric measures the profitability of a company as a percentage of its total assets excluding results from operations outside the ordinary course of business. It is an indicator that reflects the efficiency of the bank’s total assets in generating underlying profit over a given period. | | | | Average total assets | | | RoRWA | | Consolidated profit | | The return adjusted for risk is a derivative of the RoA metric. The difference is that RoRWA measures profit in relation to the bank’s risk-weighted assets. | | (Return on Risk-Weighted Assets) | | Average risk-weighted assets | | | Underlying RoRWA | | Underlying consolidated profit | | This relates the underlying consolidated profit (excluding results from operations outside the ordinary course of business) to the Group’s risk-weighted assets. | | | Average risk-weighted assets | | | Efficiency | | Total costs C | | One of the most commonly used indicators when comparing productivity of different financial entities. It measures the amount of resources used to generate the bank’s total income. | | (Cost-to-income) | | Total income | | A. Stockholders’ equity = Capital and Reserves + Accumulated other comprehensive income + Profit attributable to the parent + Dividends. B. Excluding the adjustment to the valuation of goodwill, since they are not considered in the denominator, we believe this calculation is more correct. C. Total costs = Administrative expenses + amortizations + other operating costs. Annual report 2025531 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | Profitability and efficiency A (EUR million and %) | | | | | 2025 | 2024 | | RoE | 13.9% | 13.0% | | Profit attributable to the parent | 14,101 | 12,574 | | Average stockholders' equity (excluding minority interests) | 101,497 | 96,744 | | | | | | Underlying RoE | 13.0% | 12.2% | | Profit attributable to the parent | 14,101 | 12,574 | | (-) Non-recurring items | 949 | 800 | | Underlying profit attributable to the parent | 13,152 | 11,774 | | Average stockholders' equity (excluding minority interests) | 101,497 | 96,744 | | | | | | RoTE post-AT1 | 16.3% | 15.5% | | Profit attributable to the parent | 14,101 | 12,574 | | (-) AT1 costs | 622 | 620 | | (-) Goodwill impairment | (4) | (4) | | Profit attributable to the parent minus AT1 costs (excluding goodwill impairment) | 13,483 | 11,958 | | Average stockholders' equity (excluding minority interests) | 101,497 | 96,744 | | (-) Average intangible assets | 18,865 | 19,428 | | Average stockholders' equity (excl. minority interests) - intangible assets | 82,631 | 77,316 | | | | | | Underlying RoTE (post-AT1) | 15.2% | 14.4% | | Profit attributable to the parent | 14,101 | 12,574 | | (-) AT1 costs | 622 | 620 | | (-) Goodwill impairment | (4) | (4) | | Profit attributable to the parent minus AT1 costs (excluding goodwill impairment) | 13,483 | 11,958 | | (-) Non-recurring items | 949 | 800 | | Underlying profit attributable to the parent | 12,534 | 11,158 | | Average stockholders' equity (excluding minority interests) | 101,497 | 96,744 | | (-) Average intangible assets | 18,865 | 19,428 | | Average stockholders' equity (excl. minority interests) - intangible assets | 82,631 | 77,316 | | | | | | RoA | 0.84% | 0.76% | | Consolidated profit | 15,500 | 13,744 | | Average total assets | 1,843,112 | 1,803,272 | | | | | | Underlying RoA | 0.79% | 0.72% | | Consolidated profit | 15,500 | 13,744 | | (-) Adjustments to consolidated profit for activity outside the ordinary course of business | 1,503 | 1,220 | | Underlying consolidated profit | 13,997 | 12,524 | | Average total assets C | 1,771,298 | 1,739,915 | | | | | | RoRWA | 2.44% | 2.18% | | Consolidated profit | 15,500 | 13,744 | | Average risk weighted assets B | 634,020 | 630,494 | | | | | | Underlying RoRWA | 2.31% | 2.07% | | Consolidated profit | 15,500 | 13,744 | | (-) Adjustments to consolidated profit for activity outside the ordinary course of business | 1,503 | 1,220 | | Underlying consolidated profit | 13,997 | 12,524 | | Average risk-weighted assets B C | 605,556 | 604,137 | | | | | | Efficiency ratio | 45.3% | 47.2% | | Operating expenses | 24,711 | 25,149 | | Adjustments to operating expenses in the underlying income statement | 1,699 | 2,205 | | Underlying total costs | 26,410 | 27,354 | | Total income | 58,670 | 58,380 | | Adjustments to total income in the underlying income statement | (362) | (396) | | Underlying total income | 58,308 | 57,984 | A. Averages included in the RoE, RoTE, RoTE (post-AT1), RoA and RoRWA denominators are calculated using the monthly average over the period, which we believe should not differ materially from using daily balances. B. The risk-weighted assets included in the denominator of the RoRWA metric are calculated in line with the criteria laid out in the CRR (Capital Requirements Regulation). C. Excludes balances related to the Poland disposal. Annual report 2025532 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Ratio | | Formula | | Relevance of the metric | | Global business and country underlying RoTE (post-AT1) | | Underlying profit attributable to the parent minus AT1 costs A (excluding goodwill impairment) | | This indicator is used to assess the profitability of the tangible equity of a company arising from underlying activities, i.e. excluding results from operations outside the ordinary course of business, deducting AT1 issuance costs from the numerator. | | | Average stockholders' equity(excl. minority interests) - intangible assetsB | | A. For both global businesses and countries, AT1 costs are allocated according to RWA consumption. B. For global businesses, tangible equity is allocated according to RWA consumption. | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | RoTE (post-AT1) (EUR million and %) | | | | | | | | | | 2025 | | | | 2024 | | | | | % | Numerator | Denominator | | % | Numerator | Denominator | | Retail & Commercial Banking | 17.1 | 7,411 | 43,382 | | 17.6 | 7,051 | 39,997 | | Openbank | 8.5 | 1,578 | 18,546 | | 8.8 | 1,500 | 17,090 | | Corporate & Investment Banking | 17.8 | 2,602 | 14,603 | | 16.3 | 2,519 | 15,483 | | Wealth Management & Insurance | 61.5 | 1,961 | 3,189 | | 68.2 | 1,567 | 2,296 | | Payment Solutions | | | | | | | | | | | | | | | | | | Spain | 20.4 | 4,133 | 20,230 | | 18.3 | 3,620 | 19,822 | | UK | 10.2 | 1,248 | 12,200 | | 10.6 | 1,247 | 11,781 | | Portugal | 30.3 | 994 | 3,282 | | 25.0 | 985 | 3,948 | | Openbank Europe | 6.7 | 685 | 10,212 | | 5.5 | 556 | 10,055 | | US | 10.2 | 1,454 | 14,311 | | 6.9 | 1,024 | 14,742 | | Mexico | 22.0 | 1,674 | 7,616 | | 19.6 | 1,638 | 8,343 | | Brazil | 15.3 | 2,074 | 13,545 | | 16.8 | 2,323 | 13,853 | | Chile | 19.7 | 703 | 3,567 | | 16.3 | 602 | 3,693 | | Argentina | 20.2 | 419 | 2,072 | | 34.5 | 658 | 1,909 | Numerator: underlying profit attributable to the parent excluding goodwill impairment minus AT1 costs (excluding goodwill impairment). Denominator: average stockholders' equity (excluding minority interests) - tangible assets. Payment Solutions' RoTE (post-AT1) is not provided as we do not consider it a relevant metric to measure performance in this type of business. | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Efficiency ratio (EUR million and %) | | | | | | | | | | 2025 | | | | 2024 | | | | | % | Numerator | Denominator | | % | Numerator | Denominator | | Retail & Commercial Banking | 42.9 | 13,913 | 32,447 | | 44.5 | 14,704 | 33,064 | | Openbank | 43.6 | 5,680 | 13,015 | | 43.3 | 5,576 | 12,877 | | Corporate & Investment Banking | 46.8 | 3,752 | 8,016 | | 49.7 | 3,922 | 7,897 | | Wealth Management & Insurance | 35.7 | 1,444 | 4,042 | | 39.1 | 1,403 | 3,587 | | Payment Solutions | 87.6 | 1,203 | 1,373 | | 97.5 | 1,209 | 1,240 | | | | | | | | | | | Spain | 37.6 | 4,465 | 11,887 | | 38.9 | 4,509 | 11,580 | | UK | 58.4 | 2,937 | 5,032 | | 60.9 | 3,050 | 5,011 | | Portugal | 27.8 | 544 | 1,956 | | 27.8 | 574 | 2,065 | | Openbank Europe | 48.9 | 2,899 | 5,925 | | 50.5 | 2,848 | 5,644 | | US | 49.1 | 3,890 | 7,929 | | 52.3 | 3,965 | 7,580 | | Mexico | 43.3 | 2,730 | 6,305 | | 43.4 | 2,727 | 6,278 | | Brazil | 39.3 | 4,957 | 12,602 | | 38.6 | 5,219 | 13,536 | | Chile | 33.9 | 919 | 2,714 | | 36.4 | 942 | 2,592 | | Argentina | 43.8 | 978 | 2,235 | | 53.8 | 1,337 | 2,487 | Numerator: underlying total costs. Denominator: underlying total income. Annual report 2025533 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Credit risk indicators The credit risk indicators measure the quality of the credit portfolio and the percentage of non-performing loans covered by provisions. As explained in section 9.1 of this chapter, the credit risk metrics have been enhanced to include corporate exposures originated through private fixed income products. Additionally, these measures exclude Poland from all periods presented. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Ratio | | Formula | | Relevance of the metric | | NPL ratio (Non-performing loans ratio) | | Credit impaired customer loans and advances, guarantees and undrawn balances and debt securities issued by non- financial institutions | | The NPL ratio is an important variable regarding financial institutions' activity since it gives an indication of the level of credit risk the entities are exposed to. It calculates risks that are, in accounting terms, declared to be credit impaired as a percentage of the total outstanding amount of customer credit and contingent liabilities and debt securities issued by non-financial institutions. | | | Total risk A | | | NPL coverage ratio | | Total allowances to cover impairment losses on customer loans and advances, guarantees and undrawn balances and debt securities issued by non-financial institutions | | The NPL coverage ratio is a fundamental metric in the financial sector. It reflects the level of provisions as a percentage of the credit impaired assets. Therefore, it is a good indicator of the entity's solvency against customer defaults both present and future. | | | Credit impaired customer loans and advances, guarantees and undrawn balances and debt securities issued by non- financial institutions | | | Cost of risk | | Allowances for loan-loss provisions over the last 12 months | | This ratio quantifies loan-loss provisions arising from credit risk over a defined period of time for a given loan and debt securities issued by non-financial institutions portfolio. As such, it acts as an indicator of credit quality. | | | Average loans and advances to customers and debt securities issued by non-financial institutions over the last 12 months | | A. Total risk = non-impaired and impaired customer loans and advances and guarantees + impaired undrawn customer balances + debt securities issued by non-financial institutions. | | | | | --- | --- | --- | | | | | | Credit risk (I) (EUR million and %) | | | | | Dec-25 | Dec-24 | | NPL ratio | 2.91% | 3.03% | | Credit impaired balances | 33,739 | 34,383 | | Gross loans and advances to customers registered under the headings 'financial assets measured at amortized cost'and 'financial assets designated at fair value through profit or loss' classified in stage 3 (OCI), excluding POCI (Purchased or Originated Credit Impaired) | 31,531 | 32,144 | | Customer guarantees and undrawn balances classified in stage 3 | 1,306 | 1,438 | | Gross debt securities issued by non-financial institutions registered under the headings 'financial assets measured at amortized cost' and 'financial assets designated at fair value through profit or loss' classified in stage 3 | 839 | 697 | | POCI exposure (Purchased or Originated Credit Impaired) that is additionally impaired | 46 | 91 | | Doubtful exposure of portfolios at fair value through profit or loss | 17 | 13 | | Total risk | 1,159,180 | 1,134,418 | | Impaired and non-impaired gross loans and advances to customers | 1,058,447 | 1,038,306 | | Impaired and non-impaired customer guarantees and impaired undrawn customer balances | 80,056 | 77,560 | | Impaired and non-impaired gross debt securities issued by non-financial institutions | 20,677 | 18,552 | Annual report 2025534 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | --- | --- | --- | | | | | | Credit risk (II) (EUR million and %) | | | | | Dec-25 | Dec-24 | | NPL coverage ratio | 66% | 64% | | Total allowances to cover impairment losses | 22,358 | 22,155 | | Total allowances to cover impairment losses on loans and advances to customers measured at amortized cost and designated at fair value through OCI | 21,158 | 21,145 | | Total allowances to cover impairment losses on customer guarantees and undrawn balances | 712 | 688 | | Total allowances to cover impairment losses on debt securities issued by non-financial institutions measured at amortized cost and designated at fair value through OCI | 488 | 322 | | Credit impaired balances | 33,739 | 34,383 | | Gross loans and advances to customers registered under the headings 'financial assets measured at amortized cost' and 'financial assets designated at fair value through profit or loss' classified in stage 3 (OCI), excluding POCI (Purchased or Originated Credit Impaired) | 31,531 | 32,144 | | Customer guarantees and undrawn balances classified in stage 3 | 1,306 | 1,438 | | Gross debt securities issued by non-financial institutions registered under the headings 'financial assets measured at amortized cost' and 'financial assets designated at fair value through profit or loss' classified in stage 3 | 839 | 697 | | POCI exposure (Purchased or Originated Credit Impaired) that is additionally impaired | 46 | 91 | | Doubtful exposure of portfolios at fair value through profit or loss | 17 | 13 | | | | | | Cost of risk | 1.14% | 1.12% | | Underlying allowances for loan-loss provisions over the last 12 months | 12,128 | 11,822 | | Allowances for loan-loss provisions over the last 12 months | 12,596 | 12,183 | | Adjustments to allowances for loan-loss provisions for activity outside the ordinary course of business | (468) | (361) | | Average loans and advances to customers and debt securities issued by non-financial institutions over the last 12 months | 1,063,783 | 1,057,100 | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | NPL ratio (EUR million and %) | | | | | | | | | | Dec-25 | | | | Dec-24 | | | | | % | Numerator | Denominator | | % | Numerator | Denominator | | Retail & Commercial Banking | 3.09 | 19,855 | 641,820 | | 3.21 | 20,689 | 643,578 | | Openbank | 5.32 | 11,351 | 213,525 | | 5.07 | 10,993 | 216,616 | | Corporate & Investment Banking | 0.72 | 1,928 | 266,108 | | 0.86 | 2,058 | 238,187 | | Wealth Management & Insurance | 0.86 | 235 | 27,384 | | 0.98 | 252 | 25,692 | | Payment Solutions | | | | | | | | | | | | | | | | | | Spain | 1.94 | 5,915 | 305,156 | | 2.66 | 7,677 | 288,162 | | UK | 1.08 | 2,645 | 244,303 | | 1.33 | 3,299 | 248,061 | | Portugal | 1.99 | 948 | 47,760 | | 2.27 | 1,014 | 44,573 | | Openbank Europe | 2.53 | 3,642 | 144,039 | | 2.50 | 3,527 | 141,312 | | US | 4.82 | 7,150 | 148,488 | | 4.68 | 7,012 | 149,907 | | Mexico | 2.65 | 1,420 | 53,476 | | 2.71 | 1,352 | 49,927 | | Brazil | 6.76 | 8,010 | 118,546 | | 6.10 | 7,090 | 116,247 | | Chile | 5.73 | 2,528 | 44,146 | | 5.37 | 2,394 | 44,590 | | Argentina | 7.68 | 677 | 8,813 | | 2.06 | 173 | 8,411 | Numerator: credit impaired customer loans and advances, guarantees and undrawn balances + debt securities issued by non-financial institutions. Denominator: total risk. Payment Solutions' NPL ratio is not provided as we do not consider it a relevant metric for this type of business. Annual report 2025535 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | NPL coverage ratio (EUR million and %) | | | | | | | | | | Dec-25 | | | | Dec-24 | | | | | % | Numerator | Denominator | | % | Numerator | Denominator | | Retail & Commercial Banking | 66 | 13,104 | 19,855 | | 63 | 12,984 | 20,689 | | Openbank | 71 | 8,075 | 11,351 | | 74 | 8,088 | 10,993 | | Corporate & Investment Banking | 47 | 908 | 1,928 | | 39 | 803 | 2,058 | | Wealth Management & Insurance | 71 | 168 | 235 | | 68 | 170 | 252 | | Payment Solutions | | | | | | | | | | | | | | | | | | Spain | 55 | 3,254 | 5,915 | | 53 | 4,041 | 7,677 | | UK | 33 | 860 | 2,645 | | 29 | 967 | 3,299 | | Portugal | 81 | 770 | 948 | | 78 | 792 | 1,014 | | Openbank Europe | 87 | 3,181 | 3,642 | | 83 | 2,910 | 3,527 | | US | 55 | 3,934 | 7,150 | | 64 | 4,471 | 7,012 | | Mexico | 105 | 1,488 | 1,420 | | 100 | 1,358 | 1,352 | | Brazil | 81 | 6,478 | 8,010 | | 79 | 5,627 | 7,090 | | Chile | 48 | 1,211 | 2,528 | | 50 | 1,196 | 2,394 | | Argentina | 90 | 607 | 677 | | 177 | 307 | 173 | Numerator: total allowances to cover impairment losses on customer loans and advances, guarantees and undrawn balances + debt securities issued by non-financial institutions. Denominator: credit impaired customer loans and advances, guarantees and undrawn balances + debt securities issued by non-financial institutions. Payment Solutions' coverage ratio is not provided as we do not consider it a relevant metric for this type of business. | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Cost of risk (EUR million and %) | | | | | | | | | | Dec-25 | | | | Dec-24 | | | | | % | Numerator | Denominator | | % | Numerator | Denominator | | Retail & Commercial Banking | 1.15 | 7,150 | 621,246 | | 1.11 | 7,064 | 634,438 | | Openbank | 2.10 | 4,457 | 212,551 | | 2.16 | 4,562 | 210,748 | | Corporate & Investment Banking | 0.14 | 278 | 196,144 | | 0.08 | 141 | 180,547 | | Wealth Management & Insurance | 0.08 | 20 | 25,509 | | 0.18 | 42 | 23,686 | | Payment Solutions | | | | | | | | | | | | | | | | | | Spain | 0.43 | 1,142 | 263,717 | | 0.50 | 1,259 | 251,826 | | UK | 0.07 | 177 | 244,442 | | 0.03 | 64 | 251,348 | | Portugal | (0.02) | (8) | 43,578 | | 0.03 | 11 | 41,676 | | Openbank Europe | 0.97 | 1,363 | 140,504 | | 0.88 | 1,209 | 137,165 | | US | 1.62 | 2,244 | 138,832 | | 1.82 | 2,507 | 137,926 | | Mexico | 2.69 | 1,239 | 46,067 | | 2.64 | 1,277 | 48,439 | | Brazil | 4.17 | 4,409 | 105,666 | | 4.03 | 4,487 | 111,362 | | Chile | 1.32 | 531 | 40,181 | | 1.19 | 497 | 41,582 | | Argentina | 7.34 | 574 | 7,820 | | 4.59 | 284 | 6,190 | Numerator: underlying allowances for loan-loss provisions over the last 12 months. Denominator: average loans and advances to customers + debt securities issued by non-financial institutions over the last 12 months. Payment Solutions' cost of risk is not provided as we do not consider it a relevant metric for this type of business. Annual report 2025536 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Other indicators The Group has a series of additional financial metrics which facilitate analysis of the underlying business trends and performance. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Ratio | | Formula | | Relevance of the metric | | LTD ratio (Loan-to-deposit) | | Net loans and advances to customers | | This is an indicator of the bank's liquidity. It measures the total loans and advances to customers net of loan-loss provisions as a percentage of customer deposits. | | | Customer deposits | | | Loans and advances (excl. reverse repos) | | Gross loans and advances to customers excluding reverse repos | | In order to aid analysis of the commercial banking activity, reverse repos are excluded as they are highly volatile treasury products. | | Deposits (excl. repos) | | Customer deposits excluding repos | | In order to aid analysis of the commercial banking activity, repos are excluded as they are highly volatile treasury products. | | | | | | --- | --- | --- | | | | | | Others (EUR million and %) | | | | | Dec-25 | Dec-24 | | Loan-to-deposit ratio | 100% | 101% | | Net loans and advances to customers | 1,037,288 | 1,017,160 | | Customer deposits | 1,041,200 | 1,005,605 | Annual report 2025537 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 10. Trend information 2026 This directors' report contains prospective information on the directors’ plans, forecasts and estimates, which are based on what they consider to be reasonable hypotheses. Readers of this report should take into account that such prospective information must not be considered a guarantee of our future performance as the plans, forecasts and estimates are subject to numerous risks and uncertainties, our future performance may not match initial expectations. These risks and uncertainties are described in the ['Risk management and compliance'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) chapter of this report and in [note 54](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1243) to the consolidated financial statements. à #### Macroeconomic environment | | | --- | | | | | We expect a mixed performance in 2026, depending on the region or country. A slight economic slowdown is expected in Brazil and the UK, while the US, the eurozone and Mexico are expected to recover moderately. The global outlook is uncertain due to geopolitical and trade tensions. Inflation is expected to continue to slow in most countries, converging towards the central banks' targets, although it is likely to do so at different rates between regions. Central banks such as the Fed are expected to complete their rate-cutting cycle in 2026. Significant changes in the unemployment rates are not expected, with most labour markets remaining resilient. Our macroeconomic forecasts for 2026 by country/region are: #### Eurozone The eurozone is expected to experience a cyclical recovery in 2026, supported by the ECB's interest rate cuts since mid-2024 and fiscal policy initiatives, particularly increased spending on infrastructure and defence in Germany. Inflation is expected to remain in line with the ECB’s 2% target, underpinned by wage moderation, leading to a gradual reduction in service inflation, which was more persistent in 2025. In the medium term, the euro area faces the challenge of achieving sustainable economic growth, through policies that boost the domestic market, regulatory simplification and the strengthening of capital markets. #### Spain We expect economic growth to remain dynamic, although at a slightly lower rate than in 2025. Domestic demand will continue to be a main driver, supported by strong household consumption, while investment, the sector that grew the most in 2025, will benefit from the allocation of European funds before August 2026. Growth in external demand is expected continue to slow as imports, boosted by strong domestic demand, are expected to outpace exports. We expect job creation to continue, with the unemployment rate declining further towards 10%, despite the rise in active population. Inflation is expected to gradually converge towards the ECB's target, as the services sector is proving to be sticky. UK In 2026, we expect GDP growth to slow to around 1%, as consumers face a slowdown in real income growth and prioritize savings over spending. Labour market weakness is expected to continue, as private companies are reducing their employees due to rising labour costs and job creation momentum in the public sector is fading. Inflation should moderate due to lower contributions from food, energy and services, the latter driven by slower wage growth, but it is expected to remain above target. The timeline for further interest rate cuts remains uncertain but we expect them to fall to 3.25% by the end of 2026. #### Portugal In 2026, we expect a moderate recovery and that the economy could reach 2% GDP growth, driven by strong domestic demand, high employment levels and balanced public finances. However, the risks associated with a slowdown in advanced economies, trade tensions and international financial volatility could continue to limit external demand in Portugal and require greater caution when assessing growth for the next year. The labour market is expected to remain at full employment, with the unemployment rate around 6.4%. We expect inflation to remain slightly above the ECB's 2% target. US We expect economic growth to remain robust, supported by investment in AI, more accommodative monetary policy and tax cuts and deductions for businesses and households included in the fiscal package approved last summer. Inflation is anticipated to remain relatively elevated due to the increase in goods prices from higher tariffs, but is expected to return towards the 2% target in the second half of the year. The Fed is expected to continue interest rate cuts towards its neutral level. #### Mexico We expect the economy to accelerate in 2026, supported by a more favourable external environment, a temporary boost from the FIFA World Cup, lower tax constraints and a revised trade agreement between the US and Canada, aimed at providing greater clarity and reducing trade uncertainty. The central bank is expected to maintain a cautious stance, although it could decide on further albeit limited rate cuts, while keeping an eye on the Fed policies, exchange rate movements and inflation. Annual report 2025538 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Brazil The economy is expected to continue the deceleration that started in mid-2025, moving towards more moderate rates after three years of strong momentum. Inflation is expected to ease to below 4%, allowing Brazil's central bank to begin to gradually cut interest rates, though they will remain elevated to ensure the anchoring of medium-term inflation expectations. Fiscal policy is expected to undertake a consolidation process to meet primary surplus targets and set the public debt ratio on a sustainable path. #### Chile The economy is expected to grow at a slower pace than in 2025, affected by a less favourable external environment. Domestic demand is expected to continue to recover, supported by a rebound in investment linked to mining and energy projects. Inflation is expected to decline further and converge towards the 3% target in 2026, allowing the central bank to reduce interest rates once more, to neutral levels. #### Argentina The economy is expected to continue to recover gradually, supported by greater financial stability and an improvement in domestic demand within a more predictable exchange rate environment. The continuation of policies aimed at fiscal discipline and inflation moderation should help increase confidence and sustain more balanced growth. A gradual normalization of the macroeconomic framework and a more stable political environment should support improved financing conditions and a stronger external position. à #### Financial markets | | | --- | | | | | Our outlook for 2026 points to cautious optimism, supported by a macroeconomic environment characterized by more accommodative monetary policies and positive, albeit moderate, growth in the main economies. We expect equity markets to maintain a positive tone in 2026. In the US, the combination of solid growth, already approved fiscal expansion and returns from companies linked to AI should continue to support markets. However, the demanding valuations currently priced into US equities may lead to periods of higher volatility. In Europe, we anticipate more moderate gains, as effective implementation of spending on infrastructure, defence and the energy transition should support certain sectors, though the continent will likely continue to face weak demand. In fixed-income markets, we believe that the downward trend in sovereign yields could be coming to an end. Structural factors, such as rising public financing needs, are placing a relatively high floor under long-term maturities. In the eurozone, we expect sovereign spreads to continue to be driven by idiosyncratic factors, and fiscal and political pressures in France will remain a key focus. By contrast, risk perception has improved in the euro area periphery, though room for further spread compression is limited. In the foreign exchange markets, following the sharp depreciation recorded in 2025, the US dollar could face a less volatile 2026, but with a downside pressure against the euro. We expect precious metals to remain attractive, supported by a persistently uncertain geo-economic environment, central bank purchases and contained real interest rates. Industrial metals should continue to benefit from their structural role in the energy transition and from growing demand linked to the data centres required for AI development. In contrast, oil is likely to face a less favourable price outlook, due to increased OPEC+ production and structurally weaker demand. In developing economies, the outlook for 2026 is generally positive. More accommodative international financial conditions, slowing global inflation and stable flows into risk assets should create a more favourable environment than in previous years. Although uncertainties remain, particularly regarding the Chinese economy and the renewal of the trade framework between the US and China as the truce expires. The starting point, however, is more balanced and markets have shown greater capacity to absorb episodes of volatility. In Latin America, markets are expected to continue to benefit from a more benign global backdrop and from ongoing disinflation across the region. Improved external financial conditions, together with prudent monetary policies, should continue to support debt markets, currencies and equity markets. In this environment, investors’ attention will likely remain focused on domestic factors, particularly fiscal consolidation, the credibility of economic policy frameworks and the anchoring of inflation expectations. The financial sector is expected to be characterized by greater stability in net interest income, supported by more stable monetary policy. Additionally, economic growth should support steady credit quality across portfolios. Risks are slightly skewed to the downside and may come from non-bank financial institutions, with the risk of disorderly adjustments in asset prices and disruptions to market liquidity. Even so, at the moment, most banking institutions currently find themselves in solid solvency positions to face such a scenario. In addition to the economic environment, banks must cope with the acceleration of business digitalization and knowledge and management of the risks associated with climate change. à #### Financial regulation | | | --- | | | | | In 2026, while the European Commission is likely to continue to publish numerous proposals and initiatives, we expect the regulatory agenda will focus on the transition from the initial political momentum of the new European cycle to a phase of implementation and consolidation phase. Following the initial progress made in 2025 in terms of competitiveness, regulatory simplification and the strategy of the Savings and Investments Union (SIU), the focus is expected to shift towards negotiating and adopting the different proposals, as well as implementing the necessary measures to boost competitiveness in the banking sector. The latter will also be supported by the publication of the European Commission's report on banking competitiveness. Annual report 2025539 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | At the same time, global advances in AI, digital assets and the regulation of 'new money' (in particular, stablecoins) are expected to continue to drive the need for greater international coordination and more consistent regulatory frameworks across jurisdictions. The UK and the US will likely continue to progress in the same direction. #### Markets and the Savings and Investments Union Reports published by political figures such as Enrico Letta and Mario Draghi agree on a lack of competitiveness and innovation within the EU. The new SIU will be instrumental in channelling the trillions of euros in European savings towards capital markets, but this will require less fragmented, more liquid and more transparent markets. The debate on how to complete the Banking Union is expected to resume, with a renewed approach to the design of a European deposit insurance fund that will help complete the architecture of the single financial market and strengthen cross-border integration. The year will see the negotiation of two major legislative files: the review of the pensions framework, aimed at strengthening supplementary savings schemes, improving portability and increasing citizen participation in long-term investment products. Secondly, the financial and capital markets integration package, which seeks to reduce fragmentation, improve liquidity and transparency, and further progress towards a more coherent European supervisory framework. Both packages are expected to be essential pillars of the SIU and key to its effective implementation. In parallel, the US will review part of its market regulation, known as Regulation NMS, while the UK has also launched consultations in this area. #### Prudential and resolution The prudential and resolution agenda will be shaped by an in- depth review of the bank capital requirements supervisory and regulatory framework in Europe. The European Commission and competent authorities will continue to analyse the capital stack to assess the coherence between going concern and gone concern requirements across the microprudential, macroprudential and resolution dimensions. This exercise seeks to improve predictability, avoid overlaps between frameworks and reinforce the usability of capital buffers in stress situations, as these factors are especially important to ensure the financial sector’s ability to support growth and investment. The simplification of the supervisory framework will also gain significant prominence. At the end of 2025, the ECB published the conclusions of its task force on simplification, led by Vice-President Luis de Guindos, paving the way for a gradual implementation in 2026, aimed at increasing the efficiency of the Supervisory Review and Evaluation Process (SREP), reducing the burden from level 2 and level 3 developments and improving the transparency and consistency of supervisory expectations. Moreover, this will take place in an environment that is increasingly reflecting on the competitiveness of the European banking sector. The European Commission will further support this discussion with the publication of its report on banking competitiveness in the second half of the year. In 2026 mandates stemming from the application of Basel III will continue to be implemented as will the adaptation of global prudential frameworks, including the ongoing review of the treatment applicable to NBFIs. Following progress made in 2025, the implementation at the country level of the crisis management and deposit insurance framework reform is expected to continue, along with the phase-in of the new securitization rules, adopted to strengthen competitiveness and expand the financing capacity of the European economy. Finally, the NBFI sector is also likely to be a topic of discussion, with the potential introduction of additional regulation or new disclosure requirements. One of the main areas of concern is the sector's strong growth, which outpaced that of the regulated financial sector in 2025. #### Sustainability In 2026, the sustainability regulatory agenda is expected to revolve around the implementation of measures adopted under the Omnibus I package. Following the 2025 review of the European Sustainability Reporting Standards (ESRS) carried out by the European Financial Reporting Advisory Group (EFRAG) to balance information requirements and costs for preparers, the delegated act incorporating the simplified ESRS is expected to be published and to enter into force. In addition, the delegated act on Taxonomy, designed to reduce the operational burden of its application, particularly for the financial sector, is also expected to be adopted. One of the main regulatory topics of the year will be the review of the SFDR. The legislative process will resume following the proposal presented by the Commission in November 2025, aimed at improving the framework's legal clarity, functionality and effectiveness in addressing greenwashing risk. In other countries, such as Mexico, Chile and Brazil, progress towards establishing a cross-sector sustainability framework is expected to continue. Likewise, 2026 will be the first year in which several jurisdictions, including Brazil and Chile, adopt and implement the ISSB standards. Annual report 2025540 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Digital Digital regulation is expected to continue to advance, extending to countries where there has been limited so far. In the current geopolitical environment, the US, the European Union and the UK will continue to assess how to ensure the enforcement of frameworks related to digital competition and financial services, while also furthering regulation in areas such as AI. Regulatory fragmentation is likely to continue to intensify in the absence of common international standards. At the international level, fora such as the G20, the Bank for International Settlements (BIS) and the Financial Stability Board (FSB) will continue to promote initiatives to boost cross-border payments and foster technological innovation (e.g. the BIS Innovation Hub initiative). In parallel, 2026 is set to be a key year for digital assets and the evolution of 'new money'. Regulated stablecoins are likely to gain prominence in global payments as the US, the UK and several Latin American jurisdictions, such as Brazil and Argentina, adopt robust regulatory frameworks, and institutional markets advance in integrating tokenization solutions and regulated custody services. The global monetary system is expected to evolve towards a hybrid model in which CBDCs, stablecoins and tokenized deposits coexist and reshape how international finance works. #### Retail banking Access to capital markets and retail investor protection will continue to be a priority in the EU's agenda. Legislative proposals under the RIS are expected to be approved in Brussels, and further progress is also expected on SIU initiatives. The transposition of the new directive regarding consumer credit and the directive on distance marketing of consumer financial services should also take place in 2026. Annual report 2025541 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | Retail | | | Our priorities for 2026 are to: → Continue transforming into a global business leveraging our global scale, new common operating model and the rollout of global technology platforms. → Deepen customer primacy and continue growing our customer base through a superior omnichannel experience and hyper-personalization, supported by leading local franchises. → Promote profitable growth, allocating capital to high-return opportunities while reinvesting efficiency gains from scale and digitalization to support innovation and transformation. → Ensure the successful integration of TSB and Webster into the Group, maximizing operational and commercial synergies, while ensuring service continuity and value creation for customers, employees and shareholders. | | | Retail & Commercial Banking | | | | | A global business integrating our retail and commercial banking activities | | | | | | | | | | | | | | Our vision for 2026 is to continue evolving into a global digital bank with branches, combining our global scale with local presence to deliver sustainable and profitable growth. The key priorities for 2026 are: • Drive the operating model transformation to enhance operational leverage taking advantage of our global scale, thereby reducing operating costs, across the following lines of action: • End-to-end digitalization. Provide customers with best-in- class products and experiences through optimized journeys. Continue strengthening our digital capabilities to drive engagement and digital sales. • Automation and simplification. Continue streamlining processes and promoting leaner organizational structures with the aim of enhancing efficiency and agility. AI is expected to play a pivotal role in the automation of operations, resulting in more efficient processes, a reduction in manual workloads and improvements in the cost-to-serve. • Global technology platform. Continue to converge all units towards the global platform with a particular focus on the rollout of Gravity, which reduces costs per transaction and improves response times. Continue the deployment of the global app and our assisted-channel solution, which enhances productivity and drives sales across our branches and contact centres. Continue deploying the new customer interaction platform, enabling hyper-personalization across all channels and segments, increasing sales conversion and strengthening our relationship with customers. Finally, continue developing the global solution (app and web) for corporates, progressively integrating existing products and capabilities. • Additionally, as part of our business model transformation, we will deepen our focus on value creation, placing the customer at the heart of our management, through: • Customer relationships. Solidify our position as our customers main trusted financial partner across our footprint. In Retail, we are promoting hyper-personalization and broadening value-added products, to strengthen customer relationships and drive growth. We continue to strengthen advisory capabilities to develop and deepen customer relationships with SMEs and Corporates. • Customer experience. Integrate best-in-class digital products with a redesigned branch model positioned as community hubs. • Execute our transformation with discipline and a programmatic model across all markets driving profitable growth and ensuring the successful integration of TSB and Webster into the Group, once the transaction is completed. Strengthen our execution capacity through agile, AI-enabled ways of working. Reinvest the efficiencies generated through scale into innovation, talent and technology. | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | Customer experience | | | Operational leverage | | | Global platform | | | | | | | | | | | | | | Best digital products and new branch model | | | Process automation and a leaner organization | | | Proprietary back-end (Gravity), OneApp, assisted channels, customer interaction platform and corporate digital platform | | | | | | | | | | | | | | | | | | | | | | Annual report 2025542 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | Openbank | | | Our priorities for 2026 are to: → Maintain our leadership in mobility finance, strengthening and expanding strategic partnerships and focusing on profitable growth. → Scale our digital banking business across Mexico, Germany and Spain, leveraging our global digital banking platform, while also laying the foundations to expand into new markets. In the US, prepare for the integration of Webster, subject to the corresponding regulatory approvals. → Transform Openbank into a more integrated, scalable and efficient global business, leveraging thousands of new customers daily and seeking to increase customer lifetime value while maintaining low customer acquisition costs. → Continue to focus on engineering excellence, operational efficiency and hyper- personalized customer experiences. | | | Openbank | | | | | A digital bank that combines state-of- the-art technology with a personal and human touch | | | | | | | | | | | | | Openbank, previously known as Digital Consumer Bank (Consumer), brings together Santander's mobility finance and consumer banking operations under a single global business, supported by our global digital banking platform, which is already live in the US, Spain, Mexico and Germany. The business has a strong foundation for growth, underpinned by the opportunity that arises from the acquisition of more than 20,000 new customers every day. Our vision is to evolve our business from a primarily monoline lending model to a leading, digital banking model that combines advanced technology with a personal, human touch, placing customers at the heart of our management. In 2026, our strategic priorities are to: • Consolidate our leadership in mobility finance by optimizing the business to maximize profitability and capital efficiency, while deepening strategic relationships with global partners. At the same time, we will work to expand our operations beyond traditional auto lending (e.g. operational leasing, sustainable mobility solutions, autonomous fleet financing and AI-enabled robotics financing), to cater to the evolving needs of our partners and customers. In addition, we will continue to strive to improve new business profitability with a stable cost of risk through the cycle, on the back of our capital and risk discipline, underpinned by data- driven underwriting, risk-based pricing and strong collateral management. • Grow our digital banking business. Gain scale in our core markets, enhancing our product offering to become our customers' primary bank and improve NPS, while laying the foundations to expand into new markets. In the US, focus on the integration of our consumer banking business with Webster (subject to the corresponding regulatory approvals), before resuming the rollout of our digital bank across the US from a single platform. Further develop our checkout lending and embedded finance engine, Openbank Pay, incorporating new strategic partners and countries to fuel customer growth at a low acquisition cost. Continue to work on differentiated value propositions, such as an agentic commerce platform that enables AI agents to participate in product discovery and financing journeys. • Continue to build a best-in-class global digital banking platform that drives customer acquisition and engagement and continues to boost deposit gathering to fund asset growth. • Leverage AI and automation capabilities to accelerate our transformation and growth by increasing productivity, enhancing personalization and reducing cost-to-serve. This combination of scale, technology, funding strength and risk and capital discipline position Openbank to deliver sustainable returns above the cost of equity. | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | Customer experience | | | Operational leverage | | | Global platform | | | | | | | | | | | | | | Enhanced product offering and personalized, data-driven experiences that increase NPS, deepen engagement and improve customer lifetime value | | | AI and automation support across our core processes to increase productivity, accelerate time-to-market and reduce cost-to serve | | | Scale our global digital banking platform to drive engagement, creating long- lasting relationships with our customers | | | | | | | | | | | | | | | | | | | | | | Annual report 2025543 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | CIB | | | Our priorities for 2026 are to: → Deepen our client relationships, selectively expand our client coverage with a particular focus on the US and fee business, and invest in bankers and commercial teams in some sectors. → Further globalize our platforms to provide an offering aligned with customer needs and capture operational efficiencies to strengthen and protect our cost-to-income competitive advantage. → Evolve and enhance capabilities adjacent to CIB’s areas of strength. | | | Corporate & Investment Banking | | | | | Our global platform to support corporate and institutional clients | | | | | | | | | | | | | | Our ambition is to become a larger, high-returning, world class corporate & investment bank. In 2026, our strategic priorities include: • Deepen our client relationships: • Further increase the sophistication of our centres of expertise to provide best-in-class, tailor-made and innovative solutions and structuring capabilities through a global cross-segment approach, increasing connectivity around the client agenda. • Continue to convert the investments made to enhance capabilities and broaden coverage into growth in the US and into an impact across CIB, targeting opportunities in sectors with high momentum such as Tech Infra and Security & Defence. • Enhance our positioning, strengthening our pan-regional Latin America offering, extending into adjacent-to-core European markets and selectively developing our franchise in the Middle East. • Partnering closely with Santander’s global businesses to maximize shareholder value. • Further globalize our platforms: • Continue evolving our operating model, increasing globalization, standardization and specialization of our business, improving client experience and risk management, while protecting our cost to income competitive advantage. • Advance in the execution of our automation and digitalization initiatives, through the adoption of AI in our businesses and support functions, to enhance competitiveness and adapt to evolving client needs. • Active capital management, with a focus on profitability: • Focus on advisory and capital-light businesses, selectively deploying resources to the most efficient transactions. • Further develop our originate-to-share model to enhance profitability and optimize risk. | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | Customer experience | | | Operational leverage | | | Global platform | | | | | | | | | | | | | | Further develop our role as strategic partner to our clients through our enhanced offering | | | Leverage our global centres of expertise and tech investments, embedding AI to unlock productivity and growth | | | Strengthen collaboration with other Santander businesses to evolve our global operating model and maintain our competitiveness | | Annual report 2025544 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | Wealth | | | Our priorities for 2026 are to: → Improve our customer experience by providing enhanced value-added products and services, focusing on the launch and development of our Insurance & Asset Management Solutions business. → Boost operational leverage by globalizing product and service factories and centres that improve local distribution networks. → Develop common global platforms to transform our operations and distribution model leveraging Group technology, data and AI. | | | Wealth Management & Insurance | | | | | Globalizing and transforming our private banking, asset management and insurance businesses | | | | | | | | | | | | | | We aim to transform our Wealth businesses, leveraging the Group's technology and AI as major enablers, while promoting globalization and simplification to enhance value and the service we provide to our clients. To deliver on this ambition, our priorities for 2026 are organized around the following growth levers: • Customer experience. Provide enhanced value-added products and services to our clients, while expanding our geographical footprint into relevant markets and simplifying our product offering. Continue to develop strategic initiatives and businesses with significant growth potential through the launch and development of our Insurance & Asset Management Solutions, the business line that will bring together our insurance and asset management activities from 2026 onwards: • Further evolve our Life & Investment platform by integrating the end-to-end value chain of liquid and illiquid asset management and pursuing growth through enhanced origination and distribution, strategically supported by our proprietary asset management vehicles. • Continue to grow our Protection Platform, which integrates Property & Casualty, which are fee-generating businesses, seeking to maximize the value of existing joint ventures. • Operational leverage. Continue to increase the global reach of our service and product factories. At the same time, further reinforce collaboration with other global businesses by leveraging synergies across our activities to drive value creation and enhance operational leverage. • Global platforms. Progress in the development, transformation and digitalization of our operations and distribution model leveraging technology, data and AI, enabling us to offer personalized value proposition and services to our customers, while improving distribution models. Leverage AI to increase hyper-personalization and next generation advisory in Private Banking, develop analytical capabilities to provide each insurance customer with the most suitable protection offer, and continue end-to-end process transformation in asset management. | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | Customer experience | | | Operational leverage | | | Global platform | | | | | | | | | | | | | | Provide our customers with enhanced value-added products and personalized services | | | Globalize our operations and product factories while simplifying our processes and value proposition | | | Develop common digital platforms to transform our operations and distribution capabilities | | | | | | | | | | | | | | | | | | | | | | Annual report 2025545 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | Payments | | | Our priorities for 2026 are to: → Accelerate our growth in total payment volumes through the development of new products and international expansion to generate new revenue for the Group. → Continue the migration of the Group’s payments to global platforms to capture operational efficiencies derived from the Group’s scale. | | | Payment Solutions | | | | | Single infrastructures for payment solutions | | | | | | | | Given that our payments platform strategy is now largely established, we are positioning Payments, now named Payment Solutions, as the Group’s payments platform business. As a result, from 2026 onwards, our cards business will be integrated into Retail, while the Group’s card processing platform (Plard), will remain within the Payment Solutions business, together with A2A payment processing. Payment Solutions thus comprises of Getnet, Getnet Platforms, consisting of A2A and card payment processing platforms, and Ebury. Our aim is to strengthen our position as a leading global payment platform, with sustainable growth in all regions and the open market, while accelerating technological innovation. To achieve this, we will focus on the following levers: • Getnet • Drive profitable growth and strategic partnerships through the distribution of products via Santander and other partners (i.e., software companies, payment facilitators). • Strengthen our product and technology capabilities through the creation of hybrid teams that enable us to accelerate the development and global expansion of our products and value- added services. • Optimize our operational processes, unifying and making our technological solutions more efficient. • Make progress in simplification, shifting to more agile processes by introducing AI initiatives. • Getnet Platforms • Continue the migration of Group A2A payments to our new single platform. • Leverage scale and connectivity to continue reducing cost-per- transaction, while expanding the range of services through the single platform. • Develop and deploy our instant cross-border payments solution. • Complete the implementation of our global card platform in Brazil, Mexico, Chile, Spain, Portugal and the UK, integrating it into local banks and enabling portfolio migration and the decommissioning of legacy systems. • Ebury • Strengthen the customer franchise through product development, enhanced commercial capabilities and geographical expansion. • Introduce tailored products to capture verticals such as mass payments. | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | Customer experience | | | Operational leverage | | | Global platform | | | | | | | | | | | | | | Deliver best-in-class payment solutions, leveraging our global and local scale | | | Reduce cost per transaction through capex optimization and operational efficiency | | | Migrate volumes to common global platforms to gain scale and offer competitive pricing in the open market | | | | | | | | | | | | Annual report 2025546 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | ![Riesgos_ENG.jpg]() Risk management and compliance Annual report 2025547 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | --- | --- | | | | | [1. Risk management and control model](#ifd267db8a3954cee9195a6debe7bab1e) | [548](#ifd267db8a3954cee9195a6debe7bab1e) | | [1.1 Risk principles and culture](#i87a78d2ba3df46da9b193e86c57bbfc0) | [548](#i87a78d2ba3df46da9b193e86c57bbfc0) | | [1.2 Key risk types](#i50dc92a076234ec39d3284951f528ed5) | [548](#i50dc92a076234ec39d3284951f528ed5) | | [1.3 Risk and compliance governance](#i3cbc233e9de94a34b715c4c733f8f08d) | [549](#i3cbc233e9de94a34b715c4c733f8f08d) | | [1.4 Risk management processes and tools](#i89298454f05b4058bb5abc7d2dac0edc) | [551](#i89298454f05b4058bb5abc7d2dac0edc) | | [Risk appetite and structure of limits](#i0078ac4f443b4f0b83788d9c05570125) | [551](#i0078ac4f443b4f0b83788d9c05570125) | | [Risk profile assessment (RPA)](#if17fe55ca3e847cb8c2afb56762f2678) | [553](#if17fe55ca3e847cb8c2afb56762f2678) | | [Scenario analysis](#i4fe728d13b0d49ed8dcc9f25b79c38a0) | [553](#i4fe728d13b0d49ed8dcc9f25b79c38a0) | | [Risk reporting structure](#i388533ba31c44545966b10b69881fca9) | [554](#i388533ba31c44545966b10b69881fca9) | | [1.5 Internal control system](#i99aafda09c004b518ae0bbc1d1a9fdf4) | [555](#i99aafda09c004b518ae0bbc1d1a9fdf4) | | [2. Credit risk](#i96598ae050aa498eac201948bd23efb4) | [556](#i96598ae050aa498eac201948bd23efb4) | | [2.1 Introduction](#i54ab2ce33832409a86f0dcf0d5bdc6f6) | [556](#i54ab2ce33832409a86f0dcf0d5bdc6f6) | | [2.2 Credit risk management](#ic1cd0466fbda4155aeef6090aca501d5) | [556](#ic1cd0466fbda4155aeef6090aca501d5) | | [2.3 Key metrics](#icd235f12c2c54a369f25b5994fa632fa) | [557](#icd235f12c2c54a369f25b5994fa632fa) | | [2.4 Other credit risk details](#i45423c46b11e4a1aa124a3788b44bb62) | [563](#i45423c46b11e4a1aa124a3788b44bb62) | | [3. Market, structural and liquidity risk](#i36ced9d3255e44b19ebe1f924fcac9fb) | [568](#i36ced9d3255e44b19ebe1f924fcac9fb) | | [3.1 Introduction](#i5de1e3653649413dbee50b455bffa6ab) | [568](#i5de1e3653649413dbee50b455bffa6ab) | | [3.2 Market risk management](#i9ed5de04dc9345ac893de25573bd4afd) | [568](#i9ed5de04dc9345ac893de25573bd4afd) | | [3.3 Key market risk metrics](#i6932b61bbbab4f58a9e0354be051ab0b) | [571](#i6932b61bbbab4f58a9e0354be051ab0b) | | [3.4 Structural balance sheet risk management](#i0a66263c9fa34b818b53e86449005934) | [574](#i0a66263c9fa34b818b53e86449005934) | | [3.5 Key structural balance sheet risk metrics](#i613893587556467ab9796a4aeb9485bd) | [575](#i613893587556467ab9796a4aeb9485bd) | | [3.6 Liquidity risk management](#ic091c083ef1e4b1d8bfa2a6c622df676) | [577](#ic091c083ef1e4b1d8bfa2a6c622df676) | | [3.7 Key liquidity risk metrics](#i52c36c8fc96f4fc58e92898c380aa35a) | [578](#i52c36c8fc96f4fc58e92898c380aa35a) | | [3.8 Actuarial, pension and insurance risk management](#i9decb84765b741f4a9e748979c5b86be) | [579](#i9decb84765b741f4a9e748979c5b86be) | | [4. Capital risk](#idb9254d8236e4f129818f9e6951b429e) | [580](#idb9254d8236e4f129818f9e6951b429e) | | [4.1 Introduction](#i1abdacfbdc354776941677789acdf7a0) | [580](#i1abdacfbdc354776941677789acdf7a0) | | [4.2 Capital risk management](#if81de356149944459a03a3d7f1d8765d) | [580](#if81de356149944459a03a3d7f1d8765d) | | [4.3 Key metrics](#i8bc828f4739946c4a7e760900ea778e1) | [581](#i8bc828f4739946c4a7e760900ea778e1) | | [5. Operational risk](#i735ec6d47447491cbd989b7c8c057ca8) | [582](#i735ec6d47447491cbd989b7c8c057ca8) | | [5.1 Introduction](#i1d3b1eaa901c40b19a0a907686f67e92) | [582](#i1d3b1eaa901c40b19a0a907686f67e92) | | [5.2 Operational risk management](#i8828b8f5f147454dac7c37cb679da2a8) | [582](#i8828b8f5f147454dac7c37cb679da2a8) | | [5.3 Key metrics](#icc722157275645ddb3574e69beb23866) | [587](#icc722157275645ddb3574e69beb23866) | | [6. Compliance risk](#i2efdd633cbad4518aa4409381b958b33) | [588](#i2efdd633cbad4518aa4409381b958b33) | | [6.1 Introduction](#i818e9dc99f8c4e16a1398cb56a1f71f7) | [588](#i818e9dc99f8c4e16a1398cb56a1f71f7) | | [6.2 Compliance risk management](#i9da165fc4383455fa150d2b96221dbfe) | [588](#i9da165fc4383455fa150d2b96221dbfe) | | [7. Model risk](#i3570272e5bdb4eb899000b445c7ac7ab) | [594](#i3570272e5bdb4eb899000b445c7ac7ab) | | [7.1 Introduction](#i1ca5b323ba1a4022927902f81ec1485b) | [594](#i1ca5b323ba1a4022927902f81ec1485b) | | [7.2 Model risk management](#id5f62dbd16c7430c913a1163a21b9766) | [594](#id5f62dbd16c7430c913a1163a21b9766) | | [8. Strategic risk](#i8320b2e599bd4ef2b3c6207486787f37) | [596](#i8320b2e599bd4ef2b3c6207486787f37) | | [8.1 Introduction](#i7e543d62b04d4a569a4736833bc8ab3f) | [596](#i7e543d62b04d4a569a4736833bc8ab3f) | | [8.2 Strategic risk management](#i96d50d59af06465589d703db8a6679a9) | [596](#i96d50d59af06465589d703db8a6679a9) | | [8.3 Emerging risks in 2025](#i454e7e5ecfd94e82835a83edfe47a600) | [597](#i454e7e5ecfd94e82835a83edfe47a600) | Annual report 2025548 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 1. Risk management and control model Our risk management and control model is based on common principles, a solid risk culture, a clear governance structure and advanced management processes to manage different risk types. Sound corporate governance is essential to the functioning of banks and, in particular, to risk management. At Grupo Santander, our governance structure enables the board of directors and senior management to make informed strategic decisions, oversee risks, and verify that we manage them in line with the risk appetite and limits we set. #### 1.1 Risk principles and culture Risk management and control follow the principles set out below and abide by our risk culture (Risk Pro). These principles are mandatory, meet regulatory requirements, and conform to market best practice: 1. All employees are responsible for risk management. They must understand the risks arising from their activities and take ownership for managing them. 2. Senior management involvement. Through conduct, actions and communications, senior management promotes consistent risk management, fosters our risk culture, and oversees that the risk profile remains within the appetite set. 3. Independence: Risk management and control functions operate independently according to our three-lines-of-defence model (described in section [1.3 ‘Risk and compliance governance’](#i6ecb2a0d58d04b53bfadfa2a833efaa7_799)), with clearly defined roles and responsibilities. 4. Holistic, forward-looking approach: We take a comprehensive approach to risk management and control that extends to all businesses and risk types that could have a material impact. This approach is forward-looking and considers trends across several time horizons and scenarios. 5. Corporate oversight of subsidiaries: Banco Santander sets minimum risk management and control standards through reference documents. Subsidiaries are responsible for translating these standards into their own internal policies and procedures. Risk culture - #### Risk Pro One of the pillars of the Group’s culture — The Santander Way — is our solid risk culture, Risk Pro (or I AM RISK in the US), a key lever in the Group’s purpose of helping people and businesses prosper. Risk Pro first and foremost reflects each employee’s individual responsibility for the risks they take in their day-to-day activity, as well as their contribution to the proper and responsible identification, assessment and management of those risks. Our risk culture is embedded in every stage of the employee life cycle: talent selection, training, day-to-day work, remuneration and recognition. In 2025 we strengthened communication and awareness plans as key tools to embed our risk culture across all units. Over the year we focused in particular on reinforcing the attitudes that all employees need to adopt for effective risk management: being aware of the risks around us, staying alert, taking ownership and speaking up so we can act as quickly as possible. We also improved both the process and the content of mandatory training and further strengthened model governance. These initiatives not only help reinforce our risk culture, they also strengthen employees’ ability to act responsibly and ethically in their daily work, managing appropriately the risks they face. | | | | --- | --- | | | | | | For more details about Group's risk culture, see section [4.1 'Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_202) [culture'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_202) in the 'Sustainability statement' chapter. | #### 1.2 Key risk types At Grupo Santander, we have processes in place to identify, measure, manage, control and report the risks to which we are exposed, both in day-to-day activity and under special circumstances. In addition, for each key risk type, the risk and compliance functions have appropriate internal standards that set out all processes and tools, roles and responsibilities, and the requirements for proper governance, which helps establish an appropriate control environment. Annual report 2025549 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Our corporate risk framework defines these risk types (additional information on each type is available in the corresponding sections): | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Credit risk](#i6ecb2a0d58d04b53bfadfa2a833efaa7_808) | | | | [Operational risk](#i6ecb2a0d58d04b53bfadfa2a833efaa7_862) | | | | | | | | | | | | | | | | | | | | [Market risk](#i6ecb2a0d58d04b53bfadfa2a833efaa7_823) | | | | [Financial crime risk](#i9debb8554f914eec8acc4cc09506b879_11512) | | | | | | | | | | | | | | | | | | | | [Liquidity risk](#i6ecb2a0d58d04b53bfadfa2a833efaa7_841) | | | | [Model risk](#i6ecb2a0d58d04b53bfadfa2a833efaa7_883) | | | | | | | | | | | | | | | | | | | | [Structural risk](#i6ecb2a0d58d04b53bfadfa2a833efaa7_835) | | | | [Reputational risk](#i9debb8554f914eec8acc4cc09506b879_11513) | | | | | | | | | | | | | | | | | | | | | | | | [Strategic risk](#i6ecb2a0d58d04b53bfadfa2a833efaa7_892) | | | | | | | | | | | | | | | These risks may be potentially affected by a range of factors that we need to identify and assess in a manner consistent with regulatory requirements and prevailing industry practices. These include: • geopolitical developments (international conflicts, economic and monetary policy decisions, new regulations or trade tensions); • digital and transformation initiatives linked to changes in technology or business models, and • sustainability factors, which includes natural and climate-related drivers (such as extreme events and the depletion or scarcity of natural resources, and impacts arising from the transition to a more sustainable economy), social factors (related to human rights and people’s wellbeing and interests), and good governance practices, both within Grupo Santander and across the stakeholders with whom we interact. #### 1.3 Risk and compliance governance Santander’s risk and compliance governance structure emanates from the board of directors and is organized to maintain autonomy between management and control functions, in line with the three- lines-of-defence model. Adoption of the corporate frameworks across the Group’s units provides a common governance model that each subsidiary replicates. #### Lines of defence Our risk governance provides for clear segregation and allocation of duties across the three lines of defence to support effective risk management and control. This management and control model is key to maintaining the resilience of Grupo Santander: | | | | | | --- | --- | --- | --- | | | | | | | | | | | | 1 st | | Business functions, as well as all other functions that generate risk, constitute the first line of defence. They must establish an appropriate environment to manage all risks associated with the business and support compliance with internal policies and regulation. Risk management must operate within the approved risk appetite and associated limits. The first line executes mitigation plans for risks where weaknesses are identified in its control environment. | | | | | | | | | | | | | | | | | | 2 nd | | The second line of defence, comprising the risk and compliance functions, independently oversees and challenges the risk management activities that the first line carries out. Its role is to help verify that we manage risks in line with the established risk appetite and to promote a strong risk culture across the organization. | | | | | | | | | | | | | | | | | | 3 rd | | The internal audit function is independent and provides the board of directors and senior management with assurance on the quality and effectiveness of internal control processes and systems, risk management (current or emerging) and governance, while assessing compliance with applicable regulation, thereby helping safeguard and protect the organisation’s value, solvency and reputation. | | | | | | | The risk, compliance and internal audit functions have an appropriate degree of separation and independence. Each has direct access to the board of directors and its committees: the risk and compliance functions report to the risk supervision, regulation and compliance committee, and the internal audit function reports to the audit committee. #### Risk and compliance committees' structure At Grupo Santander, our risk and compliance governance applies to both day-to-day activity and special situations. It is underpinned by a defined committee structure that spans from the board of directors and its committees to first-tier committees and specialist forums. The goals are clear: to enable effective risk decision-making, oversee risk control, and support the management of risks in line with the Group and subsidiary board-approved risk appetite. To achieve this, we keep the risk-taking and control lines separate. Annual report 2025550 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | The board of directors has final oversight of risk and compliance management and control to promote a sound risk culture and to review and approve risk appetite and policy, with support from its risk supervision, regulation and compliance committee (RSRCC) and its executive committee. | | | | --- | --- | | | | | | For more details, see section [4.8 ‘Risk supervision, regulation and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_544) [compliance committee activities in 2025’](#i6ecb2a0d58d04b53bfadfa2a833efaa7_544) in the 'Corporate governance' chapter. | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Board level: | | | | Shareholders.gif Board of directors | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Risk management | | | | | Risk control | | | | | | | | | | | | | | | | | | | | | | | SettingsGear.gif | Executive committee | | | | Lupa.gif | Risk supervision, regulation and compliance committee | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Executive level: | PeopleInteraction.gif | Executive risk committee (ERC) | | | Risk control committee (RCC) | | | Compliance committee | | | | | | | | | | | | | | Chair: | CEO | | | CRO | | | CCO | | | | | | | | | | | | | | | Frequency: | Weekly | | | Monthly | | | Quarterly | | | | | | | | | | | | | | | Fora: | • Model approval forum • Risk proposal forum | | | • Market, structural, liquidity and capital risk control forum • Credit risk control forum • Provisions forum | | | • Corporate product governance forum • Financial crime compliance forum | | Our governance structure also includes key roles and executive committees that strengthen oversight and support the effective performance of the control function. The Group Chief Risk Officer (CRO) leads the implementation and execution of the risk strategy, promotes an appropriate risk culture, and oversees all risks, as well as challenging and advising the business lines on their risk management. The Group Chief Compliance Officer (CCO) leads the implementation and execution of the compliance strategy and is responsible for the control and oversight of risks within scope, reporting on them to the CRO. Both have direct access and report to the risk supervision, regulation and compliance committee and to the board of directors. The executive risk committee, the risk control committee and the compliance committee form part of the executive-level committees, with powers delegated by the board’s executive committee. #### Executive risk committee (ERC) This committee manages all risks and may approve, amend or escalate transactions that may pose significant risk, as well as decide on the most significant models. It makes top-level risk decisions in line with the Group’s risk appetite. The ERC comprises the chief executive officer and other members of senior management, with the risk, compliance and finance functions represented. The Group CRO has veto power over the committee’s decisions. #### Risk control committee (RCC) The RCC oversees risks and provides a Group-wide view. It verifies that business lines are managed within the board-approved risk appetite, identifies and assesses the impact of current and emerging risks on the Group’s profile, and oversees transformation and change management. The head of the risk function chairs the committee, which comprises senior managers from compliance, finance and financial accounting and control, among others. In addition, subsidiary CROs participate regularly to report on their risk profile. Annual report 2025551 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Compliance committee This committee oversees compliance risk management and reviews remedial actions when new compliance risks arise or when control weaknesses are identified. It comprises senior managers from compliance, risk and general intervention, among others. The chair has a casting vote. The executive-level committees delegate part of their responsibilities to forums and/or standing meetings to manage and control each risk type. These forums, shown in the previous chart, are responsible for: • informing the CRO and CCO, as well as the risk control committee and compliance committee, on whether risks are being managed in line with the approved risk appetite; • conducting regular follow-up for each key risk type; and • overseeing the measures adopted to meet supervisors’ and auditors’ expectations. In addition, Grupo Santander may introduce additional governance measures for special situations to reinforce the monitoring of all risks, with particular focus on trends in key macroeconomic indicators and liquidity, the identification of vulnerable sectors/ customers, and the strengthening of cybersecurity, among other aspects. Activating these special-situations forums helps the Group address the effects of the geopolitical and macroeconomic environment with resilience. #### Group relationship with subsidiaries Grupo Santander subsidiaries’ risk and compliance management and control model is consistent with the frameworks approved by the Group board of directors. Subsidiaries adhere to the frameworks through their own respective boards. We keep the frameworks continuously up to date through an annual review and recurring adjustments to reflect legislative changes and international best practices. As part of our aggregated risk oversight, we challenge and review subsidiaries’ internal regulations and activities. This enables us to maintain a common risk management and control model across the Group. The risk and compliance functions support the businesses and oversee risks at both global and local levels. In addition, over the year we continued to strengthen the Group–subsidiary relationship model, leveraging our global scale to identify synergies under a common operating model and shared platforms. The model promotes process simplification and the reinforcement of control mechanisms to support the growth of our businesses. Our Group–subsidiary governance model (GSGM) sets out the principles that govern the relationship between Group key roles and the subsidiaries, which helps safeguard the independence of local second lines. The CRO and CCO take part in the appointment, objectives, performance reviews and remuneration of their local counterparts, which helps confirm that they are controlling risks appropriately. We continue to strengthen the relationship between the Group and its subsidiaries through close cooperation among our subsidiaries to develop common initiatives more efficiently, such as: • Transformation of organizational structures, sharing benchmarks across countries and contributing to the function’s strategic vision to promote the rollout of more advanced risk- management infrastructures and practices. • Exchange of best practices to strengthen processes and drive innovation. • Promotion of internal talent and geographic/functional mobility. fostering team diversity to reflect the diversity of the environments in which we operate. • Continuously investing in the development of our risk professionals, fostering innovation and decision quality, and promoting a global mindset is key to strengthening organisational resilience. The GSGM model also applies to the Group’s global businesses. This gives us a global-local organization in which countries ultimately remain responsible for delivering the budget, the business and customer strategy, and financial management, while the global businesses lead shared initiatives through common operating models and shared technologies, improving local performance. | | | | --- | --- | | | | | | For more details on our relationship with our subsidiaries, see section [7](#i6ecb2a0d58d04b53bfadfa2a833efaa7_586) [. ‘Group structure and internal governance’](#i6ecb2a0d58d04b53bfadfa2a833efaa7_586) in the 'Corporate Governance' chapter. | #### 1.4 Risk management processes and tools In the following section, we describe Grupo Santander's main processes and tools to carry out effective risk management. Risk appetite and structure of limits Risk appetite is the aggregate level and types of risk we deem prudent for our business strategy, even in unforeseen circumstances. It is expressed through qualitative statements and quantitative limits and metrics representative of the bank’s desired risk profile, covering all material risks to which we are exposed. To promote a comprehensive and forward-looking coverage of these risks, we apply common corporate methodologies for risk identification and assessment across geographies and activities, including emerging risk analysis and risk and control self- assessments (RCSA). These processes support the timely identification of structural and evolving risks, including those arising from geopolitical developments and broader macro- financial conditions, and inform the calibration and ongoing review of the Group’s risk appetite. | | | | --- | --- | | | | | | For more details on these exercises see sections ‘Management and control model’ 5 [.2 Operational risk management'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_868) and '8.3  [Emerging risks'.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_901) | Annual report 2025552 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Santander structures its risk appetite across five axes, which together provide a holistic view of the risks incurred in the development of our business model: | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | Key risks | | | | | | | | | | | | | | | | | | | Risk Appetite axes | Credit | | Market | | Liquidity | | Structural | | Operational | | Financial Crime | | Model | | Reputational | | Strategic | | | | | | | | | | | | | | | | | | | | | | | P&L volatility | Control of P&L volatility associated with business plan under baseline and stressed conditions | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Solvency | Control of capital ratios under baseline and stressed scenarios (aligned with the Internal capital adequacy assessment process - ICAAP) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Liquidity | Control of liquidity ratios under base and stress scenarios (aligned with the Internal liquidity adequacy assessment process - ILAAP) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Concentration | Control of concentration levels in customers, sectors and portfolios | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Non financial risks & control environment | Solid controls on non financial risks aimed to minimize financial, operative, technological losses, as well as legal and regulatory breaches, and conduct events or reputational damage | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | The main elements underpinning Santander’s risk appetite and defining our business model are: • a medium-low, predictable target risk profile, customer focus, internationally diversified operations and a significant market share; • stable, recurrent earnings and shareholder remuneration, sustained by a sound base of capital, liquidity and sources of funding; • autonomous subsidiaries that are self-sufficient in terms of capital and liquidity to safeguard their risk profiles against compromising the Group’s profile; • an independent risk function and a senior management actively engaged in supporting a robust control environment and risk culture; and • a conduct model that protects our customers and our 'Simple, Personal and Fair' culture. Risk appetite is governed throughout the Group by the following principles: • Risk appetite is part of the board's duties . The board prepares the risk appetite statement (RAS) for the whole Group every year. Through a cascading-down process, each subsidiary's board also sets its own risk appetite. • Comprehensiveness and forward-looking approach. Our appetite includes all material risks to which we are exposed and defines our target risk profile for the current and medium term, with a forward-looking view that considers stress scenarios. • Common standards embedded in the day-to-day risk management. The Group shares the same risk appetite model, which sets common requirements for processes, metrics, governance bodies, controls and standards. This facilitates effective and traceable embedding of risk appetite into more granular management policies and limits across our subsidiaries. | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | RAF | | | | | | | | | | | | | | | | | | | | | | | | | | | | RAS (Board risk appetite statement and limits) | | | | | | | | | | | | | | | | Group's RAS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | RAS Unit 1 | | | RAS Unit 2 | | | RAS Unit n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | RAF management limits | | | | | | | | | | | | | | | | Global limits & policies | | | Risk limits & policies Unit 1 | | | Risk limits & policies Unit 2 | | | Risk limits & policies Unit n | | | | | | | | | | | | | | | | | | RAF Risk appetite framework. Annual report 2025553 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | • Continuous monitoring and adaptation. Risk appetite is regularly monitored, reviewed and updated to reflect changes in market conditions, regulatory requirements and supervisory expectations. Compliance with risk appetite limits is monitored on a regular basis through dedicated reporting to senior management and the board and its committees. Breaches or potential breaches are subject to predefined escalation, remediation and follow-up processes, with oversight proportionate to their materiality through senior management and the Group’s governing bodies. • Alignment with strategy and business plans. Before approving the three-year strategic plans, annual budget, and capital and liquidity plans, the Group verifies their consistency with the limits set in the Risk Appetite Statement. We promote the alignment of strategic and business plans with our risk appetite by: • considering the risk appetite, long-term strategic view and the risk culture when drafting strategic and business plans. • challenging business and strategic plans against the risk appetite. Misalignments trigger a review of either the three- year strategic plan (to make sure we stay within RAS limits) or risk appetite limits, with independent governance. • continuous monitoring of risk appetite compliance through the three lines of defence model. ![LineasDefensaApetitoENG.jpg]() Through this framework, Santander establishes clear boundaries for risk-taking, promotes consistency between strategy and risk tolerance, and reinforces the board’s oversight of the Group’s risk profile. This approach underpins the resilience of our capital and liquidity position and supports the sustainable execution of our business model across the economic cycle. Risk profile assessment (RPA) At Grupo Santander we identify, assess and determine the risk profile for all risks arising from our activities. Our risk framework, which we review every year, defines the key risk types based on the main risk identification and assessment exercises. Risk identification covers all processes to detect internal and external risks and vulnerabilities we face. These processes raise awareness among the responsible functions and form the starting point for managing and controlling those risks. Risk assessment comprises the processes to determine, both quantitatively and qualitatively, the relevance of the risks identified. It considers both inherent risk, before mitigants and controls, and the level of residual risk. We systematically assess the Group’s risk profile and that of its subsidiaries using a single RPA methodology. This methodology rests on fundamental principles: shared accountability of all functions, efficiency, common methodologies, full coverage, materiality and a focus on corrective and mitigating actions. Risk profile calculation uses a scoring system with four materiality categories (low, medium-low, medium-high and high). This system helps monitor the risk appetite approved by the board of directors. It also provides a global view of risks at a given point in time, identifies weaknesses in management and possible deviations from the business plan, and supports corrective action. This approach reflects prudent risk management, underpinned by strong capital ratios and sound liquidity levels. We aim to maintain a stable medium-low risk profile in an environment marked by market volatility, the gradual decline in inflation and geopolitical tensions. Thanks to prudent and forward- looking management, we closed the year with strong profitability indicators, sound asset quality and a solid liquidity risk profile. #### Scenario analysis Scenario analyses enable us to measure the resilience of our balance sheet, financial statements and our capital adequacy under stressful conditions. We use the findings of these analyses to review our risk appetite and draw up actions to mitigate expected losses or, if needed, to reduce capital and liquidity. Scenario analyses also enable senior management to comprehend the nature and scope of the vulnerabilities to which the Group is exposed in the execution of its business plan. Our Research department plays a key role in determining scenarios, macroeconomic variables and other factors that can affect our risk profile in our markets. We conduct a systematic review of our risk exposure under base, adverse and favourable scenarios that predict an impact on solvency and liquidity. These exercises are fundamental to our processes: • Regulatory exercises based on EU and domestic supervisors' guidelines. Annual report 2025554 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | • Business planning to help set the Group’s risk strategy and profile, with: • internal capital and liquidity adequacy assessment processes (ICAAP and ILAAP) that measure capital and liquidity in various scenarios; • budget and strategic planning when implementing a new risk approval policy, in assessing the risk profile or when monitoring specific portfolios and business lines; • our annual recovery plan, which specifies which tools Grupo Santander could use to survive a severe financial crisis. The plan’s financial and macroeconomic stress scenarios have various levels of severity, plus idiosyncratic and/or systemic events; and • risk appetite, with stressed metrics to determine how much risk we want to expose ourselves to. • Recurrent risk management also uses scenario analyses for: • provisions estimates, which involve adjusting the value of credit operations due to existing or prospective risk factors that have not been considered in the initial approval and rating process, both for individual customers and for the portfolio as a whole; and • regular credit, market and operational risk stress tests that simulate changes in expected losses to estimate required capital and absorb unexpected losses, as well as establishing appropriate mitigation measures. | | | | --- | --- | | | | | | For more details on scenario analysis, see sections 3[.2 ‘Market risk](#i6ecb2a0d58d04b53bfadfa2a833efaa7_829) [management’](#i6ecb2a0d58d04b53bfadfa2a833efaa7_829) and 3 [.6 'Liquidity risk management'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_841) and section ['Expected loss estimation'](#i91c9cc79a7bf4cd39ca808eaeb30363f_15571) in Note 54 to the consolidated financial statement. | • Climate change scenario analysis, for which we have embedded the scenarios defined by the Intergovernmental Panel on Climate Change, which our Research department integrates and expands by adjusting them to more specific variables by country and sector to offer a more complete and tailored view of our portfolios. This enables us to boost our forward-looking capabilities to quantify the impact on our customers of a transition to a lower greenhouse gas emissions economic model, as well as potential physical risk events. To make stress testing more consistent and robust: • Our three lines of defence and senior management are involved in scenario analysis governance and oversight. • The models we develop estimate future metric values (e.g. credit losses). • Our backtesting and reverse stress exercises challenge model outcomes regularly. • Our teams contribute expert opinions and a vast understanding of portfolios. • And we thoroughly monitor models, scenarios, assumptions, results and mitigating management measures. Amid an environment characterized by a high degree of macroeconomic and geopolitical uncertainty, driven by international tensions and the US government’s trade policy, as well as a disinflation trend that is starting to translate into a gradual normalization of monetary policy by central banks, the Group has strengthened its use of scenario analysis as a key tool to identify, assess and manage risks. This environment is also shaped by resilient labour markets, early signs of slowdown in certain economies, developments in sectors that are relevant to the Group’s business — such as real estate and automotive — and the materialization of climate events with potential financial impact. Against this backdrop, the Group has strengthened its ability to anticipate and respond by identifying action points early and improving reporting and monitoring processes, in line with the prudence and consistency principles required by the applicable regulatory frameworks. The analysis has incorporated a granular view by geography and sector, with a particular focus on the customer segments most vulnerable to shifts in the macroeconomic environment and the occurrence of specific events, to support decision-making and preserve the Group’s solvency. During 2025, the Group intensified processes to identify, escalate and monitor risks linked to a volatile environment, while maintaining ongoing communication on the impacts arising from ongoing armed conflicts, trade tensions, supply chain disruptions, potential corrections in financial market valuations, exchange rate movements and the financial effects associated with adverse climate events. The Group also continued to embed in its management framework those emerging risks that could, directly or indirectly, affect its risk profile, consistent with regulatory requirements and supervisory best practices. Risk reporting structure To provide the governing bodies and senior management with a comprehensive and up-to-date view of the risk profile that supports sound decision-making, we produce regular consolidated reports on current and emerging risks. This is a dynamic, comprehensive report tailored to business needs, which prioritises and presents the most relevant risks in a timely manner. Our reporting covers the main risk types defined in the corporate framework, together with any other key elements required for their proper assessment. It also provides a consolidated view of the overall risk set, while maintaining the quality and consistency of information in line with the corporate data framework. The report’s structure reflects an appropriate balance between data, analysis and qualitative commentary, and incorporates forward-looking metrics, risk appetite information, limits and emerging risks, among other aspects. We continue to enhance the report by simplifying and automating processes, and by introducing controls that provide greater flexibility and adaptability to new needs. In 2025, we continued to report and monitor all the impacts stemming from ongoing armed conflicts; escalated the various risks associated with a volatile macroeconomic and geopolitical environment; and considered emerging risks that could have a direct or indirect impact on the Group. Annual report 2025555 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 1.5 Internal control system Our internal control system (ICS) comprises the risk and control processes that Grupo Santander’s board of directors, senior management and all employees carry out within a scheme of individual responsibilities. Its aim is to provide reasonable assurance regarding operational effectiveness, the reliability of financial and non-financial reporting, compliance with internal policies, acting responsibly, and covering every process across the organization (business, risk and support areas). Our ICS is consistent with the most demanding international standards and follows the guidelines set out by the Committee of Sponsoring Organisations of the Treadway Commission. It is based on these principles: • Tone at the top: The board of directors oversees the integrity of the ICS, while senior management is responsible for its proper implementation. Both act as a channel to raise awareness of the ICS’s importance across the organisation. • Risk control self-assessment (RCSA): A process to assess Grupo Santander’s ICS risks and controls that enables dynamic and proactive measurement of the likelihood and exposure of each operational risk linked to achieving the organization’s objectives, including operational risks arising from the management of financial risks (credit, market, structural, etc.), once the operating effectiveness of the related controls has been assessed for mitigation or to reduce exposure. • Oversight: Ongoing reviews of ICS effectiveness to manage any significant deterioration and monitor mitigation plans to support proper resolution. Oversight of ICS implementation helps maintain its effectiveness and supports continuous improvement. • Governance and reporting: This supports the definition of accurate and timely information and communication processes for decision-making and sets out appropriate governance to regularly assess the status and development of the ICS. To maintain an appropriate control environment, the first line of defence: • identifies and documents risks and controls based on knowledge and understanding of its businesses and processes, assessing the risks inherent to its activities to achieve established objectives and the controls needed to mitigate them; • maintains a dynamic ICS to reflect, at all times, the Group’s reality, the risks affecting it, and the controls that mitigate them; and • assesses risk exposure and the effectiveness of internal controls, defining and monitoring response strategies for undesired exposures and control deficiencies. The Heracles internal control IT system supports all the above to drive a comprehensive view. The second line of defence, through the internal control assurance function, is responsible for: • setting criteria and methodologies and overseeing their implementation across the Group. This helps safeguard the suitability and integrity of internal controls that the functions establish to provide reasonable assurance over the achievement of defined objectives; • overseeing and challenging ICS effectiveness, monitoring key deficiencies and undesired risk exposures, and executing mitigation plans properly; and • reporting regularly an integrated view of the internal control environment to senior management and the governing bodies to enhance the organization’s risk management. The main RCSA conclusions and deficiencies are set out in a report presented to the CRO, the Chief Accounting Officer (CAO) and the governing bodies. The results formalize the identified deficiencies as well as their status and the plans designed for proper resolution. This report supports the Chief Executive Officer (CEO), the Chief Financial Officer (CFO) and the CAO in certifying ICS effectiveness in line with the requirements of the Sarbanes-Oxley Act. Annual report 2025556 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 2. Credit risk #### 2.1 Introduction Credit risk is the risk of loss arising from the default on obligations or the deterioration in the credit quality of a customer or counterparty to which Grupo Santander has granted financing or with which it has entered into a contractual obligation. It is our most material risk, both in terms of exposure and capital consumption, and includes counterparty risk, country risk and sovereign risk. #### 2.2 Credit risk management Grupo Santander’s processes for identifying, analysing, deciding on and controlling credit risk rely on a comprehensive view of the credit risk cycle, which covers the transaction, the customer and the portfolio. Identifying credit risk allows active management and effective control of portfolios. We identify and classify external and internal risks in each business in order to take corrective and risk-mitigating measures when needed, through the following processes: ![Control.jpg]() | | | --- | | | | | 1 #### Planning Strategic commercial plans are a risk management and control tool the business and risk areas prepare for different credit portfolios. It helps us determine business targets, risk policies, infrastructure, to have a holistic view of the portfolios, and draw up actions plans aligned with our risk appetite statement. | | | --- | | | | | 2 #### Risk assessment and credit rating Risk approval depends on the applicant’s ability to repay the debt, for which we review their regular sources of income, including funds and net cash flows from any businesses. The credit quality assessment models are based on the credit rating engines for each of our segments. ![Network2.jpg]() | | | --- | | | | | 3 #### Scenario analysis Scenario analyses determine potential risks in credit portfolios; give us a better understanding of their performance under various macroeconomic and environmental conditions; and enable us to bring forward and employ management strategies to avoid future deviations from set targets. | | | --- | | | | | 4 #### Monitoring Our holistic, regular monitoring of every customer enables us to track credit quality, spot risk trends early and check business performance against original plans, which are key to credit risk management. ![SecurityShield.jpg]() | | | --- | | | | | 5 #### Mitigation techniques Our risk approval criteria rest on assessing borrowers’ ability to meet their financial obligations. To do so, we analyse the funds or net cash flows generated by their business or their regular income, regardless of any guarantees or collateral we may require. We treat these as a secondary recovery route if the primary one fails, and their purpose is to calibrate our level of exposure and mitigate loss in the event of default. ![CirculoCheck.jpg]() | | | --- | | | | | 6 #### Collections and recoveries Global strategy for activities related to the debt recovery management process, under risk policies and independent oversight. This approach combines customer segmentation and digital tools to optimise collections, with a customer-centric focus throughout the credit cycle and geared towards maximising recoveries. | | | | --- | --- | | | | | | For more details on the credit cycle, see section ' [Credit risk](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1261) [management'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1261) in Note 54 to the consolidated financial statement. | 1 Certain figures contained in this section have been subject to rounding to enhance their presentation. Accordingly, in certain instances, the sum of the numbers in a column or a row in tables contained in this report may not conform exactly to the total given for that column or row. Annual report 2025557 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 2.3 Key metrics 1 In 2025, developments in the credit market were shaped by successive interest rate cuts in mature markets and some emerging economies and the start of a new cycle of credit growth. Against this backdrop, demand gradually recovered, with positive growth in the main geographies where we operate. In retail banking, mortgage lending balances began to recover, supported by more favourable financial conditions and lower early repayments. Consumer lending maintained a positive performance during the year, as it is less sensitive to interest rate trends and benefitted from a resilient labour market. In the eurozone, the ECB’s neutral-to-expansionary monetary policy stance has already fed through to mortgage and consumer portfolios. In the United Kingdom, rate cuts, stable house prices and support measures from the Bank of England drove greater credit activity. In corporate lending, credit volumes grew in the first part of the year, in line with the expansion phase of the investment cycle. However, developments in US trade policy and geopolitical tensions, together with some weaker activity and external demand indicators, led to some slowdown in the second half of the year, especially in Latin America, where, after a strong first half, signs of moderation started to appear. In the United States, weaker labour market data and greater caution on the economic outlook prompted the Federal Reserve to cut interest rates. This helped sustain credit activity, although in a more prudent lending environment focused on lower-risk segments. Our credit risk remained well diversified, with an appropriate balance between mature and emerging markets: Spain (26%), the United Kingdom (21%), the United States (12%) and Brazil (9%). The distribution of credit risk by global businesses (including gross customer loans, guarantees and documentary credits) is shown below: | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | Main credit risk performance metrics from our activity with customers Dec. 25 data | | | | | | | | | | | | | | Credit risk with customers A (EUR million) | | | | Impaired loans (EUR million) | | | | NPL ratio (%) | | | | | 2025 | 2024 | 2023 | | 2025 | 2024 | 2023 | | 2025 | 2024 | 2023 | | Retail & Commercial Banking | 640,483 | 643,530 | 652,382 | | 18,998 | 20,441 | 20,961 | | 2.97 | 3.18 | 3.21 | | Digital Consumer Bank | 213,525 | 216,616 | 207,107 | | 11,351 | 10,993 | 9,831 | | 5.32 | 5.07 | 4.75 | | Corporate & Investment Banking | 267,492 | 241,061 | 221,593 | | 1,842 | 2,002 | 3,007 | | 0.69 | 0.83 | 1.36 | | Wealth Management & Insurance | 27,395 | 25,303 | 23,612 | | 235 | 237 | 330 | | 0.86 | 0.93 | 1.40 | | Payments | 26,695 | 24,804 | 23,710 | | 1,695 | 1,290 | 1,191 | | 6.35 | 5.20 | 5.02 | | Total Grupo | 1,181,945 | 1,157,274 | 1,133,898 | | 34,393 | 35,265 | 35,620 | | 2.91 | 3.05 | 3.14 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | NPL Coverage Ratio (%) | | | | Net loan-loss provisions B (EUR millions) | | | | Cost of riskC (%) | | | | | 2025 | 2024 | 2023 | | 2025 | 2024 | 2023 | | 2025 | 2024 | 2023 | | Retail & Commercial Banking | 61 | 59 | 61 | | 5,416 | 5,846 | 6,540 | | 0.88 | 0.92 | 1.02 | | Digital Consumer Bank | 71 | 74 | 77 | | 4,457 | 4,562 | 4,106 | | 2.10 | 2.16 | 2.04 | | Corporate & Investment Banking | 48 | 39 | 41 | | 291 | 171 | 165 | | 0.15 | 0.09 | 0.10 | | Wealth Management & Insurance | 71 | 71 | 29 | | 22 | 44 | (17) | | 0.09 | 0.19 | -0.08 | | Payments | 127 | 138 | 140 | | 2,027 | 1,714 | 1,666 | | 7.91 | 7.36 | 7.22 | | Total Grupo | 66 | 65 | 66 | | 12,411 | 12,333 | 12,458 | | 1.15 | 1.15 | 1.18 | 2024 and 2023 data include the annual adjustment of the perimeter of the Global Customer Relationship Model between global businesses. Dos not affect Total Group. Total Group includes Corporate Centre. A. Includes gross loans and advances to customers, guarantees and documentary credits B. Loan-loss provisions net of post write-off recoveries (EUR 1,795 million in 2025). C. Cost of risk calculated as the ratio of loan-loss provisions over the past 12 months / average customer loans and advances to customers over the last 12 months. | | | | --- | --- | | | | | | For more details on secondary segments, see section [2. 'Main aggregates](#i91c9cc79a7bf4cd39ca808eaeb30363f_15542) [and variations](#i91c9cc79a7bf4cd39ca808eaeb30363f_15542)['](#i91c9cc79a7bf4cd39ca808eaeb30363f_15542) in Note 54 to the consolidated financial statement. | Given that until the Poland disposal was completed in January 2026, the management of Santander Polska remained unchanged, all management metrics included in this report have been calculated including Poland, i.e. maintaining the same perimeter that existed at the time of the announcement of the Poland disposal. This reporting approach is consistent with the information used internally in management reporting, as well as with other public Group disclosures. Annual report 2025558 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Credit quality during 2025 was as follows: The NPL ratio stood at 2.91% (-14 bps vs. year-end 2024), mainly due to the Group's efforts to reduce its non-performing portfolio, which fell 2.5% to EUR 34,393 million. Declines in Europe led the improvement, supported by the strong performance of the portfolios and the execution of the NPL reduction plan. Gross customer exposure (total risk) grew 2.1% in the year to EUR 1,182 billion, driven mainly by the positive performance of the CIB business. Under IFRS 9 requirements, Group net loan-loss provisions (LLPs) in December 2025 totalled EUR 12,411 million, a slight increase from the previous year (0.6%). Nevertheless, the higher LLPs in Corporate & Investment Banking (CIB) and Payments (mainly in Brazil, where measures have already been taken to contain this trend, and in Argentina, driven by the deterioration in the economy) were offset by: (i) the better performance in Retail & Commercial, supported by lower provisions in Spain, lower impairments in Brazil’s consumer portfolio, and in Poland's Swiss-franc mortgage portfolio; (ii) Digital Consumer Bank, where, despite a less favourable performance in Germany, the US and Brazil delivered better performance during the year. The cost of risk stood at 1.15%, flat regarding 2024 and in line with our target for the year, supported by the positive performance of net loan-loss provisions and total risk. The total NPL coverage ratio decreased slightly to 66%, with impairment allowances of EUR 22,869 million. Coverage remained at comfortable levels, considering that more than 65% of the Group’s portfolio is secured by collateral. Our credit risk management performance within the five global businesses at December 2025was as follows: | | | | --- | --- | | | | | | For more details on segments, see section '5[.1 Description of segments](#i6ecb2a0d58d04b53bfadfa2a833efaa7_694) [during 2025'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_694) in the 'Economic and financial review' chapter. | | | | | --- | --- | | | | | | Retail & Commercial Banking | The retail portfolio mainly comprises high credit quality mortgage loans, around 90% of which have a loan-to-value (relationship between the loan amount and the appraised value of the collateral) below 80%, and a corporate portfolio where roughly 50% has real estate or other tangible collateral. | | | --- | | | | Portfolio distribution by geography and by performing loans and credit impaired | | Dec. 25 data | ![8246337223617]() ![3922]() At December 2025, gross customer credit exposure in Retail was distributed among mortgages (51%), corporates and institutions (24%), SMEs (14%) and other individuals (11%). The NPL ratio fell by 21 bps during the year to 2.97%, supported by the reduction in impaired loans, driven by declines in Europe. Gross customer credit exposure (total risk) remained practically stable during the year. The cost of risk improved by 5 bps versus 2024, to 0.88%, reflecting the good performance of LLPs, which decreased by 7% year-on-year, mainly drive by: (i) Spain, where the mortgage portfolio performed well, supported by lower interest rates and a resilient labour market; (ii) Poland, lower provisions for the Swiss franc mortgage portfolio; and (iii) Brazil, supported by currency depreciation and reflecting prudent risk management and a shift in the portfolio mix. The total NPL coverage ratio rose slightly to 61%. Given that Retail includes the mortgage portfolios in Spain and the United Kingdom, which are backed by high-quality collateral, we consider coverage levels appropriate for the portfolio’s risk profile. Annual report 2025559 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | --- | --- | | | | | | Digital Consumer Bank | This business comprises all consumer finance activity in Europe and the Americas, including Openbank, Open Digital Services and Santander Bank N.A Consumer. The portfolio mainly consists of vehicle finance loans, which account for close to 80% of the portfolio and are originated through strategic partnerships with car manufacturers, as well as leasing and personal loans. With the arrival of Openbank, the US retail business continues to undergo a major transformation to become a digital bank with branches. | | | --- | | | | Portfolio distribution by geography and by performing loans and credit impaired | | Dec. 25 data | ![5624]() ![5626]() The NPL ratio at year-end 2025 stood at 5.32%, 24 bps higher than in the same period in 2024, due to: (i) higher impaired loans, mainly in Germany (due to the macroeconomic environment and the credit quality deterioration of the corporates portfolio), Brazil and Argentina; (ii) decrease in gross customer exposure (total risk), linked to lower auto lending and to asset rotation initiatives in the US. Net loan-loss provisions declined 2.3% year-on-year, mainly driven by better performance in the US and Brazil, with both benefiting from FX movements. The cost of risk fell by 7 bps versus December 2024, to 2.10%, mainly due to a decline in provisions in the US (-13%), driven by resilient consumer behaviour, used car prices stable at high levels, capital relief measures. The total NPL coverage ratio at year-end 2025 stood at 71%, which we consider comfortable, given the positive impact of vehicle price trends and the higher share of secured loans in the portfolio, mainly in the US. | | | | --- | --- | | | | | | Corporate & Investment Banking | Corporate & Investment Banking is a wholesale business in which over 83% of our customers have a credit rating higher than 'investment grade'. It’s a business with a strong component of advisory services and high value added solutions. | | | --- | | | | Portfolio distribution by geography and by performing loans and credit impaired | | Dec. 25 data | ![6903]() ![6905]() During the year, CIB showed a strong ability to deliver profitable growth and maintain solid credit quality in a complex environment, while keeping its strategic focus on geographic and client diversification and on offering higher value-added products. By business line, growth was recorded across all lines (Global Markets, Global Banking and Global Transaction Banking). The NPL ratio improved by 14 bps in the year, to 0.69%, after a reduction in impaired loans of EUR c. -160 million YoY across a range of clients and geographies, mainly in Europe and South America. In addition, gross customer credit exposure (total risk) increased by 11% over the year, mainly in the US and Spain, and to a lesser extent Mexico. Net loan-loss provisions rose 70% compared with the same period of the previous year, mainly reflecting the performance of the business in Brazil in a more challenging macroeconomic environment, higher coverage for already impaired customers, and portfolio growth in the US. The cost of risk increased by 5 bps versus December 2024 to 0.15% as the portfolio growth did not offset the increase in provisions. The total NPL coverage ratio reached 48%, up 9 pp versus December 2024, driven by higher provisions in a more challenging economic and geopolitical environment. Annual report 2025560 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | In 2025, CIB continued to strengthen the control environment amid portfolio growth and heightened regulatory and supervisory scrutiny, leveraging new technologies. Key initiatives included reinforcing the risk infrastructure —including organisation and governance, with a particular focus on the United States— upgrading credit risk systems and models, defining more robust frameworks in specific areas, and strengthening preventive risk management capabilities. | | | | --- | --- | | | | | | Wealth Management & Insurance | Includes the corporate unit of Private Banking and International Private Banking in Miami and Switzerland (Santander Private Banking), the asset management business (Santander Asset Management), the insurance business (Santander Insurance) and the unit that manages the investment platforms and stakes that complement Wealth's traditional business (the new vertical, Portfolio Investments). | | | --- | | | | Portfolio distribution by geography and by performing loans and credit impaired | | Dec. 25 data | ![7795]() ![7797]() The NPL ratio closed at 0.86%, down 8 bps in the year, supported by an increase in gross customer exposure during the period (+8.3%), with a particular focus on the Middle East portfolio and the roll-out of secured lending in all core geographies, while impaired loans remained stable. Net loan-loss provisions in 2025 totalled EUR 22 million, compared with EUR 44 million at year-end 2024. The cost of risk rose by 10 bps in the year to 0.09%, driven by provisions and by the portfolio growth, with a focus on collateral- backed loans. The total NPL coverage ratio remained stable over the year and stood at 71%, which remains at a comfortable level given the high share of the collateral-backed loan portfolio. | | | | --- | --- | | | | | | Payments | Payments brings together the Group’s digital payment services. It offers global technology solutions for our banks and our customers in the open market. The portfolio groups our exposure to payment and transfer processor operations (PagoNxt) and the Cards businesses, which are typified by rapid turnover and profitability that is appropriate to their level of risk. | | | --- | | | | Portfolio distribution by geography and by performing loans and credit impaired | | Dec. 25 data | ![8246337223625]() ![8774]() At year-end 2025 the NPL ratio stood at 6.35%, +115 bps versus 2024, due to higher impaired loans, mainly in Brazil and Argentina. Meanwhile, gross customer exposure (total risk) grew by 8% compared to the same period of 2024, supported by strong commercial momentum across all countries, with a clear strategic focus on growth, service quality and technological transformation, to provide payments and cards customers with an improved experience. Net loan-loss provisions reached EUR 2,027 million, concentrated mainly in Cards. In 2025, provisions increased 18% versus the same period of the prior year, mainly in South America. The cost of risk rose by 55 bps over the year, to 7.91%, as higher provisions were not fully offset by portfolio growth. The early action measures aim to improve the quality and profitability of new production, supporting a risk profile that remains balanced against the portfolio's economic return. The total NPL coverage ratio of impaired assets declined to 127%. 2 Exposure at Default. 3 Probability of Default. 4 Loss Given Default. Annual report 2025561 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Reconciliation of key figures Santander’s 2025 consolidated financial statements disclose loans and advances to customers before and after loan-loss reserves. Credit risk with customers also includes off-balance sheet risk or contingent liabilities. This table shows the relationship between those concepts: | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Gross credit risk with customers A | | | | | | | | | | 1,181,945 | | | | | | | | | | | | | | | | | | Gross credit risk with customers | = | Gross loans and advances to customers & others | | | | | + | Contingent liabilities | | 1,181,945 | 1,098,453 | | | | | 83,492 | | | | | | | | | | | | Loans and advances to customers (Gross) | = | Financial assets measured at amortized cost (Gross) B | + | Financial assets held for trading B | + | Financial assets at fair value (Gross) B | | | | 1,098,453 | 1,045,473 | 32,766 | 20,214 | | | | | | | | | | | | | | Loan-loss reserves | = | Loan-loss reserves | | + | | Loan-loss reserves | | | | 22,138 | (22,021) | | | (117) | | | | | | | | | | | | | | Net loans and advances to customers | = | Net financial assets measured at amortized cost | + | Financial assets held for trading | + | Net financial assets at fair value | | | | 1,076,315 | 1,023,452 | 32,766 | 20,097 | | | | | | | | | | | | | | | | Net loans and advances to customers | | | | | | | | | | 1,076,315 | | | | | | | Section 2. Credit risk  Balance sheet item from consolidated financial statement | | | --- | | | | | | | | --- | | | | | A. Includes gross loans and advances to customers, guarantees and documentary credits. B. Before loan-loss allowances. Financial asset impairment IFRS 9 introduced a substantial change in the approach to calculating impairment provisions for credit risk exposures, moving from an incurred loss model to an expected loss model. Under this new approach, provisions are recognised from the moment a transaction is originated, since credit risk exists from that moment and not only when defaults occur. This change required a review of the models and methodologies used to estimate expected loss for customers and portfolios, incorporating the expected evolution of the economy and the residual life of different transactions. The methodology to quantify expected credit losses – and therefore impairment provisions – is based on an unbiased, probability-weighted estimate of up to five future macroeconomic scenarios that could affect the ability to collect contractual cash flows. These scenarios take into account the time value of money, relevant information about past events, current conditions and projections of significant macroeconomic factors, such as GDP, house prices, unemployment rate and interest rates, among others. The parameters used by the Group to calculate impairment provisions (mainly EAD 2, PD 3, LGD 4 and discount rate) build on our internal model infrastructure and the experience gained in regulatory and management environments. However, rather than simply adapting existing models, these parameters are specifically designed, updated and validated to comply with IFRS 9 requirements. | | | | --- | --- | | | | | | For more details on financial asset impairment and the calculation of provisions under IFRS 9, see section ['2. Main aggregates and variations](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1264) ['](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1264) in Note 54 to the consolidated financial statement. | IFRS 9 classifies transactions based on how credit risk has evolved since origination to the analysis date, so we can determine both their accounting treatment and pricing. Transactions with different probabilities of default must carry different interest rates or margins that cover their expected loss. Annual report 2025562 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | If a transaction has undergone a significant increase in credit risk since origination, the interest rate initially applied no longer covers its potential risk, so it requires a higher level of provisions. Under the standard, transactions fall into three groups or stages: • Stage 1 includes assets whose current credit risk has not increased relative to origination or initial recognition. Provisions are calculated to cover expected credit losses from possible defaults over the next 12 months. • Stage 2 includes assets that have not yet incurred credit losses but have shown a significant increase in credit risk since origination or initial recognition. Impairment provisions must cover potential loss over the lifetime of the exposure, during which losses may materialise. • Stage 3 includes assets where there is evidence of credit deterioration that will eventually materialise as credit losses. Provisions must cover potential loss over the lifetime of the exposure. #### IFRS 9: Classification of exposures by credit quality and expected credit loss horizons | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | . +. Credit quality | | | Stage 1 | | Stage 2 | | Stage 3 | | | . -. Credit quality | | | | | | | | } | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Performing credit assets with no significant credit risk increase since initial recognition | | Credit assets that have experienced a significant credit risk increase since initial recognition | | Impaired credit assets | | | | | | | | Ä | | Ä | | Ä | | | | | | | | | | | | | | | | | | | | Expected losses 12 months | | Expected losses over residual life (Lifetime) | | | | | | In addition, impairment provisions include expected credit losses over the expected remaining lifetime of those financial instruments originated or purchased credit-impaired (POCI). The following table shows credit risk exposure by stage and geography: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Exposure by stage and geographyA, B | | | | | | EUR million. Dec. 25 data | | | | | | | Stage 1 | Stage 2 | Stage 3 | Total | | Spain | 243,864 | 15,415 | 5,915 | 265,194 | | UK | 206,386 | 19,789 | 2,645 | 228,820 | | Portugal | 40,887 | 2,860 | 928 | 44,675 | | Poland | 39,841 | 4,755 | 1,549 | 46,145 | | US | 97,538 | 13,658 | 7,150 | 118,346 | | Mexico | 47,467 | 4,106 | 1,420 | 52,993 | | Brazil | 83,205 | 13,599 | 7,192 | 103,996 | | Chile | 37,439 | 4,058 | 2,528 | 44,025 | | Argentina | 6,710 | 1,425 | 677 | 8,812 | | DCB Europe | 131,711 | 8,673 | 3,642 | 144,026 | | Total Group | 974,540 | 90,090 | 34,393 | 1,099,023 | A. Does not include EUR 82,922 million in temporary purchases of stage 1 assets, nor risk not subject to impairment. B. Total Group includes the Corporate Centre. Stage 3 financial assets (showing impairment) performed as follows: | | | | | | --- | --- | --- | --- | | | | | | | 2023 - 2025 Impaired credit assets | | | | | EUR million. Dec. 25 data | | | | | | 2025 | 2024 | 2023 | | Start of period | 35,265 | 35,620 | 34,673 | | Net entries | 13,591 | 13,787 | 14,658 | | Perimeter | — | 17 | (59) | | FX and others | (1,053) | (947) | 195 | | Write-off | (13,410) | (13,212) | (13,847) | | End of period | 34,393 | 35,265 | 35,620 | The following table shows the calculation of IFRS 9 loan loss reserves for assets subject to credit risk: | | | | | | --- | --- | --- | --- | | | | | | | 2023 - 2025 loan-loss reserves | | | | | EUR million. Dec. 25 data | | | | | | 2025 | 2024 | 2023 | | Start of period | 22,835 | 23,490 | 23,418 | | Stage 1 and 2 | 8,534 | 9,026 | 9,272 | | Stage 3 | 14,301 | 14,464 | 14,146 | | Gross provision for impaired assets and write-downs | 14,065 | 13,511 | 13,524 | | Provision for other assets | 141 | 428 | 526 | | FX and other | (762) | (1,382) | (132) | | Write-off | (13,410) | (13,212) | (13,847) | | End of period | 22,869 | 22,835 | 23,490 | | Stage 1 and 2 | 8,471 | 8,534 | 9,026 | | Stage 3 | 14,398 | 14,301 | 14,464 | A. Includes off-balance. 5 Certain figures contained in this section have been subject to rounding to enhance their presentation. Accordingly, in certain instances, the sum of the numbers in a column or a row in tables contained in this report may not conform exactly to the total given for that column or row. Annual report 2025563 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Forbearance Our forbearance policy incorporates the regulatory requirements set out in the EBA Guidelines on the management of non- performing exposures and forbearance. The policy serves as a reference for implementation in our subsidiaries and reflects applicable supervisory expectations. It sets the criteria to identify, classify and monitor these transactions, with the aim of applying maximum diligence in their granting and control. Forbearance solutions must aim to recover the amounts due, aligning payment obligations with the customer’s current situation. Forborne transactions must remain in the appropriate classification for a suitable period in order to capture the associated risk and confirm a reasonable recovery of repayment capacity. Under no circumstances should forbearance be used to delay the immediate recognition of losses or to mask non-payment risk. In December 2025, the stock of forborne exposures continued to decline (by 7% in the year), to EUR 25,235 million, supported by good repayment performance in our main geographies, which offset higher activity in other regions. In credit quality terms, 53% of the portfolio is classified as non-performing, with a coverage ratio of 41%. | | | | | | --- | --- | --- | --- | | | | | | | Key forbearance figures | | | | | EUR million. Dec. 25 data | | | | | | 2025 | 2024 | 2023 | | Performing | 11,901 | 12,459 | 16,919 | | Credit impaired | 13,334 | 14,685 | 15,044 | | Total forborne | 25,235 | 27,144 | 31,963 | | % Total coverage A | 26% | 26% | 25% | A. Total forbearance portfolio loan-loss allowances/total forborne portfolio. 2.4 Other credit risk details 5 #### Credit risk from financial markets activities This section includes the credit risk generated by treasury activity with customers, particularly credit institutions, both through money market financing products and through products that carry counterparty risk, with the aim of meeting customer needs and those of the Group in its own balance sheet management. Counterparty credit risk is the risk that may arise from a total or partial failure to meet the financial obligations contracted with the Bank, because a customer may default before the final settlement of cash flows. This risk usually increases the longer the period between the trade date and the settlement date. It is a bilateral credit risk, as it may affect both parties to the transaction, and its magnitude is uncertain, since it depends on the behaviour of market factors, which are inherently volatile. Within counterparty credit risk exposure, an additional risk may arise, known as wrong-way risk. This occurs when exposure to a portfolio or counterparty increases at the same time as its credit quality deteriorates. In other words, wrong-way risk exists when default risk rises and, as a result, exposure to that counterparty also increases. Santander uses specific models to measure and control this risk. Settlement risk arises when the settlement of a transaction involves a bilateral exchange of cash flows or assets between two counterparties. For example, when one counterparty buys US dollars in exchange for euros, settlement involves one party delivering euros and receiving an equivalent amount of dollars from the other. Settlement risk is the risk that either party may fail to meet its settlement obligations. To measure this risk, we have also developed a global infrastructure and specific models. Effective management and control of counterparty risk requires an infrastructure that can measure current and potential exposure, at different aggregation and granularity levels, in an agile and dynamic way, and that can produce reports with sufficient detail to support understanding of exposures and decision-making. We use two methodologies to measure exposure: mark-to-market (MtM, or replacement value in derivatives) plus potential future exposure (add-on), and Monte Carlo simulation, applied in certain countries and products. We also calculate capital at risk or unexpected loss, that is, the loss that represents economic capital net of collateral and recoveries, after deducting expected loss. After markets close, we recalculate exposures by updating transactions to their new time horizon, refreshing potential future exposure and applying mitigation techniques (netting, collateral, among others). We then monitor exposures daily against the limits approved by senior management, within the risk appetite. We control this risk through a real-time integrated system that shows, at any time, the available exposure limit with any counterparty, in any product, tenor or subsidiary. At Grupo Santander we carry out monthly stress tests on derivatives and securities financing transaction portfolios. These exercises form an integral part of the counterparty credit risk management process, help assess the resilience of exposures under adverse scenarios and support proper identification, measurement and control of the associated risks. #### Counterparty risk exposures: over-the-counter (OTC) #### transactions and organized markets (OM) At December 2025, total exposure on a management basis, in terms of positive market value after applying netting and collateral agreements for counterparty risk activities, stood at EUR 16,164 million (net credit equivalent risk of EUR 45,558 million). Despite our operating environment, exposure fell 13% year on year, mainly driven by lower risk with corporate clients and higher portfolio volumes with clearing houses and financial institutions. | | | | | | --- | --- | --- | --- | | | | | | | Counterparty risk: exposure in terms of market value and credit risk equivalent, including the mitigation effect A | | | | | EUR million. Dec. 25 data | | | | | | 2025 | 2024 | 2023 | | Market value with netting effect and collateral B | 16,164 | 15,855 | 13,428 | | Net CREC | 45,558 | 52,604 | 48,372 | A. Figures under internal risk management criteria. Listed derivatives have a market value of zero. No collateral is received for these types of transactions. B. Includes the mitigation of netting agreements and deducting the collateral received. C. CRE (credit risk equivalent): net value of replacement plus the maximum potential value, less collateral received. Annual report 2025564 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | The following table shows the breakdown, by notional amounts, of the different products that generate counterparty credit risk, mainly interest rate and foreign exchange (FX) hedging instruments: | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | Counterparty risk by nominalA | | | | | | | EUR million. Dec. 25 data | | | | | | | | 2025 | | 2024 | | 2023 | | | Nominal | | Nominal | | Nominal | | Credit derivatives B | 74,592 | | 45,628 | | 24,528 | | Equity derivatives | 40,599 | | 28,431 | | 20,326 | | Fixed income derivatives | 11,414 | | 17,567 | | 4,793 | | Exchange rate derivatives | 1,633,875 | | 1,391,564 | | 1,256,997 | | Interest rate derivatives | 8,959,269 | | 8,718,567 | | 6,775,004 | | Commodity derivatives | 22,238 | | 23,762 | | 20,061 | | Total OTC derivatives | 10,468,671 | | 9,994,422 | | 7,909,027 | | Derivatives organised markets C | 273,316 | | 231,098 | | 192,682 | | Repos | 487,969 | | 457,977 | | 421,937 | | Securities lending | 77,707 | | 74,139 | | 61,374 | | Total counterparty risk D | 11,307,663 | | 10,757,636 | | 8,585,020 | A. Figures under internal risk management criteria. B. Credit derivatives acquired including hedging of loans. C. Refers to transactions involving listed derivatives (proprietary portfolio). Listed derivatives have a market value of zero. No collateral is received for these types of transactions. D. Spot transaction not included. Santander’s derivatives activity is mainly concentrated in maturities of less than five years, while its repo and securities lending activity is mostly in maturities of less than one year. The following table shows the 2025 notional amounts by maturity bucket. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Counterparty risk: Distribution of nominal risk by maturity A | | | | | | EUR million. Dec. 25 data | | | | | | | Up to 1 year | Up to 5 years | Up to 10 years | More than 10 years | | Credit derivatives B | 17% | 55% | 26% | 2% | | Equity derivatives | 51% | 38% | 12% | —% | | Fixed income derivatives | 95% | 5% | —% | —% | | Exchange rate derivatives | 60% | 26% | 9% | 5% | | Interest rate derivatives | 46% | 34% | 12% | 8% | | Commodity derivatives | 73% | 25% | 2% | —% | | Total OTC derivatives | 47% | 33% | 12% | 7% | | Derivatives organised markets C | 67% | 23% | 8% | 2% | | Repos | 95% | 5% | —% | —% | | Securities lending | 99% | 1% | —% | —% | | Total counterparty risk | 50% | 31% | 11% | 7% | A. Figures under internal risk management criteria. B. Credit derivatives acquired, including coverage of loans. C. Refers to transactions involving listed derivatives (proprietary portfolio). Listed derivatives have a market value of zero. No collateral is received for these types of transactions. Despite a decline in the credit quality of some counterparties, counterparty credit risk remains concentrated in high-quality names (90% of exposure is to counterparties rated A or above). In notional terms, 97% of transactions with counterparty credit risk correspond to CIB clients, managed under its risk model. The category commonly referred to in the industry as non-bank financial institutions (NBFIs) covers a broad range of entities, including asset managers, hedge funds, pension funds, insurance companies, sovereign wealth funds, broker-dealers and other investment or funding vehicles that operate outside the traditional banking sector. Within Grupo Santander’s portfolio, this does not represent a material client segment. In addition, counterparty credit risk exposures to these entities account for only 4% of total notional. | | | | --- | --- | | | | | Counterparty risk: Notional values by customer ratingA | | | Dec. 25 data | | | Rating | % | | AAA | 0.9% | | AA | 1.1% | | A | 87.7% | | BBB | 9.1% | | BB | 1.1% | | B | 0.1% | | Other | 0.01% | A. Ratings based on internally defined equivalences between internal ratings and credit agency ratings. Transactions with clearing houses and financial institutions are carried out under netting and collateral agreements. We continue to promote coverage of the remaining activity under similar arrangements. As a general rule, the collateral agreements signed by Santander are bilateral, with a few exceptions, mainly with multilateral institutions and securitization funds, where they are unilateral in favour of the client. | | | --- | | | | Counterparty risk: Notional values by customer segment | | Dec. 25 data | ![5502]() Collateral helps reduce counterparty risk and consists of liquid instruments with economic value that one counterparty posts or transfers to another to mitigate the credit risk arising from cross- risk derivative portfolios. We periodically revalue transactions subject to collateral agreements (normally on a daily basis), applying the contractual parameters to quantify the amount of collateral (usually cash or securities) to be paid or received from the counterparty. Annual report 2025565 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | In a highly volatile environment, the processes we have in place – and their frequency – have proved effective for sound collateral management across the Group. Collateral received under the various types of agreements signed by the Group (Credit Support Annex – CSA, Overseas Securities Lending Agreement – OSLA, International Securities Market Association – ISMA, Global Master Repurchase Agreement – GMRA, etc.) is mainly cash (48%). The remaining collateral is subject to strict quality policies regarding issuer type and rating, debt seniority and the haircuts applied. Given the risk associated with the credit exposure taken on with each counterparty, we incorporate an adjustment to the valuation of over-the-counter (OTC) derivatives when we calculate trading portfolio results. The credit valuation adjustment (CVA) is a valuation adjustment applied to OTC derivatives to reflect the counterparty’s credit risk over the life of the transactions. It represents the discount to the derivative’s value that a buyer would require after taking into account the possibility of counterparty default. To calculate this metric we consider, among others, expected exposure, probability of default, loss given default and the discount factor curve. We also apply a debt valuation adjustment (DVA), a similar adjustment to CVA that reflects the credit risk our counterparties assume on OTC derivatives when they trade with Santander. We calculate both CVA and DVA over the entire potential exposure period. As at end-December 2025, CVA adjustments totalled EUR 224 million, down 17.6% versus 31 December 2024, while DVA adjustments totalled EUR 285 million, a 10.1% decrease over the same period. These declines mainly reflect credit market dynamics, with lower spread levels compared to December 2024, and, to a lesser extent, changes in the composition of certain derivatives portfolios. In addition, the reduction in CVA reflects developments in the calculation models applied to certain customers. #### Counterparty risk, organized markets and clearing houses The Group’s policies seek, where possible, to anticipate the application of regulatory measures governing OTC derivatives, repos and securities lending, whether cleared through a central counterparty or remaining bilateral. With the standardisation of OTC activity and the increased use of internal electronic execution systems, new trades are largely cleared and settled through central counterparties in line with applicable regulation. In addition, activity not cleared through a central counterparty is actively managed with the aim of optimising volumes, taking into account the margin and capital requirements imposed by regulation. Although counterparty risk management does not contemplate credit risk for transactions executed on organised markets, we calculate regulatory credit exposure in accordance with Basel principles applicable to capital calculation. The following table shows the share of centrally cleared activity within total counterparty risk as of December 2025: | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Counterparty risk: Notional values by settlement channel and productA | | | | | | | | | | | | Nominal in EUR million. Dec. 25 data | | | | | | | | | | | | | Bilateral | | | CCP B | | | Organized markets C | | | Total | | | Nominal | % | | Nominal | % | | Nominal | % | | | Credit derivatives | 23,559 | 31.6% | | 51,033 | 68.4% | | — | —% | | 74,592 | | Equity derivatives | 29,265 | 72.1% | | 471 | 1.2% | | 10,862 | 26.8% | | 40,599 | | Fixed income derivatives | 11,414 | 100.0% | | — | —% | | — | —% | | 11,414 | | Exchange rate derivatives | 1,494,457 | 91.5% | | 106,594 | 6.5% | | 32,824 | 2.0% | | 1,633,875 | | Interest rate derivatives | 854,799 | 9.5% | | 7,895,049 | 88.1% | | 209,421 | 2.3% | | 8,959,269 | | Commodity derivatives | 2,028 | 9.1% | | — | —% | | 20,209 | 90.9% | | 22,238 | | Repos | 319,962 | 65.6% | | 168,007 | 34.4% | | — | —% | | 487,969 | | Securities lending | 77,346 | 99.5% | | 362 | 0.5% | | — | —% | | 77,707 | | Total | 2,812,832 | | | 8,221,515 | | | 273,316 | | | 11,307,663 | A. Figures under internal risk management criteria. B. Central counterparties (CCP). C. Refers to transactions involving listed derivatives (proprietary portfolio). Listed derivatives have a market value of zero. No collateral is received for these types of transactions. ![]() 6 Earnings before interest, taxes, depreciation and amortisation. Annual report 2025566 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | --- | --- | --- | --- | | | | | | | Risk settled by CCPA and productB | | | | | Nominal in EUR million. Dec. 25 data | | | | | | 2025 | 2024 | 2023 | | Credit derivatives | 51,033 | 27,684 | 10,140 | | Equity derivatives | 471 | 574 | 559 | | Fixed income derivatives | — | 96 | — | | Exchange rate derivatives | 106,594 | 39,420 | 44,152 | | Interest rate derivatives | 7,895,049 | 7,740,492 | 5,844,580 | | Commodity derivatives | — | — | — | | Repos | 168,007 | 182,973 | 193,386 | | Securities lending | 362 | 294 | — | | Total | 8,221,515 | 7,991,535 | 6,092,817 | A. Central counterparties (CCP). B. Figures under internal risk management criteria. #### Credit derivatives We use credit derivatives to hedge transactions, to support client business in financial markets and as part of our trading activity. The volume of this activity is small in notional terms (0.7% of counterparty risk notional) and is subject to a strong control environment and robust internal procedures to minimise operational risk. #### Concentration risk Concentration risk control is key to our management. We continuously monitor credit risk concentration by region and country, economic sector, customer type and other criteria. The board sets concentration limits according to risk appetite. Accordingly, the executive risk committee develops risk policies and reviews the appropriate exposure levels so we can effectively manage credit risk concentration. Because Santander is subject to the Capital Requirements Regulation (CRR) stipulations on large risks, exposure with a customer or group of associated customers will be considered 'large exposure' if its value is equal to, or greater than, 10% of eligible capital. No large exposure should exceed 25% of the entity’s eligible capital, including the credit risk reduction effect set out in the regulation. The use of risk mitigation techniques resulted in no groups triggering those thresholds as at the end of December. 5.3% of total credit risk (including loans to customers and off-balance- sheet risk) is with the 20 'large exposure' groups, according to regulation on credit exposure. While 8.4% of total credit risk is with the 40 'large exposure' groups. Our Risk division works closely with the Finance division on actively managing credit portfolios with credit derivatives, securitizations and other techniques to reduce exposure concentration and optimize risk-reward. As indicated in the key metrics section of this chapter, our credit risk is diversified among our core markets (Spain 26%, the UK 21%, the US 12%, Brazil 9%, etc.). Grupo Santander is enhancing our markets with global businesses that will help boost local performance to add value. In terms of sector diversification, 58% of our credit risk is with individuals, who are inherently highly diverse. It is also well distributed, with no significant concentration in a particular industry. The chart below shows credit risk by industry as at December 2025: | | | --- | | | | Diversification by economic sector A | | | ![8246337223954]() A. Includes total risk (gross) on balance for all clients with economic activity but excludes individuals and reverse repos. #### Sectors identification and management Grupo Santander conducts a regular review of exposure to customers operating in sectors that could be more affected by macroeconomic conditions (energy consumption, commodity prices, and key macroeconomic variables). This monitoring is complemented by the use of internal tools that allow projecting the behaviour and evolution of clients in each sector under different macroeconomic scenarios. It considers: • Market information: Industries’ stock market performance. • Analysts’ EBITDA6 forecasts for the coming years. • Internal information: Changes in credit exposure, defaults (in different timelines) and stagings. • Our industry experts’ opinion, based on specific details about our exposures and our relationships with customers. ![]() 7 Risks with domestic public or private borrowers in foreign currency and originated outside the country. 8 Countries that are not considered low risk by Banco de España. 9 Internal ratings are applied. Annual report 2025567 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | In addition, we continued to strengthen our ability to analyse potential losses at the highest possible level of granularity by enhancing the methodology and sector projection tools, based on the resilience of each company’s financial statements under different macroeconomic scenarios. #### Country risk Country risk is a component of credit risk that arises from transactions with customers residing in a particular country due to circumstances other than ordinary business risks. Its main elements are sovereign risk, transfer risk and other risks that may affect international financial activity (including wars, natural disasters and balance of payments crises, among others). To cover potential losses arising from these types of events, we integrate country risk into our models and provisioning estimation processes in accordance with applicable regulation. We assume country risk very selectively in transactions that enhance our global relations with customers. And we follow highly cautious standards to manage it. #### Sovereign risk and risk with government #### agencies Sovereign risk arises from central bank transactions (including regulatory cash reserves), government bonds (public debt) and transactions with non-commercial government institutions funded exclusively by a state’s budget revenue. Our standard for sovereign risk differs somewhat from the EBA's standard for regular stress testing. In particular, the EBA does not consider deposits with central banks, exposures with insurance companies or indirect exposures from guarantees and other financial instruments. However, its standard does generally include public administrations (including regional and local authorities), not only those of central governments. Management and control of the risk associated with sovereign risk transactions are carried out on an ongoing basis based on available information, such as reports by rating agencies and international organizations. We monitor each country where we have cross- border 7 and sovereign risk. We analyse events that could affect the country’s political or institutional stability and assign its government or central bank a credit rating. This helps us set limits for transactions with sovereign risk. In recent years, total sovereign risk exposure has remained in line with regulatory requirements and the strategy defined for its management. Changes in exposure by country reflect our liquidity management strategy and hedging of interest rate and FX risk. International exposure is diversified across countries with different macroeconomic expectations and therefore different growth, interest rate and exchange rate scenarios. At the end of December 2025, total sovereign risk exposure was EUR 224,947 million, a 13% increase compared to 2024. | | | | --- | --- | | | | | | For more details on sovereign risk exposure, see section ['](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1270) [4. Other credit](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1270) [risk aspects](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1270)' in Note 54 to the consolidated financial statement. | At year-end 2025, our exposure to local sovereign risk not in the issuer country’s official currency at the end of September 2025 was minor (EUR 4,908 million or 1.2% of total sovereign risk), based on our management criteria. Exposure to non-local sovereign issuers with cross-border risk was also minor 8 (EUR 17,002 million or 4% of total sovereign risk). The sovereign debt we hold in Latin America, which is recorded in local ledgers, is predominantly in local currency and short-term. Additionally, our investment strategy for sovereign risk considers each country’s credit quality to set the maximum exposure limits. The table below shows exposure ratios by rating9 at December 2025: | | | | | | --- | --- | --- | --- | | | | | | | Exposure distribution by rating | | | | | | 2025 | 2024 | 2023 | | AAA | 18% | 21% | 18% | | AA | 17% | 18% | 19% | | A | 43% | 41% | 41% | | BBB | 14% | 11% | 12% | | Lower than BBB | 9% | 9% | 10% | Annual report 2025568 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 3. Market, structural and liquidity risk #### 3.1 Introduction This section describes how Grupo Santander managed and controlled market risk in 2025. It covers trading risk, liquidity and structural risks, as well as the main methodologies and metrics we applied. Activities exposed to market risk include transactions in which we take on risk as a result of potential changes in market factors, such as interest rates, inflation rates, exchange rates, equity prices, credit spreads, commodity prices and volatility; the liquidity risk of our products and markets; and balance sheet liquidity risk. Thus, this includes trading risks and structural risks. | | | | --- | --- | | | | | | For more details on market factors see section ['](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1279) [Activities subject to](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1279) [market risk and types of market risk](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1279) ['](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1279) , in Note 54 to the consolidated financial statement. | We can partially or fully mitigate all these market risks with derivatives such as options, futures, forwards and swaps. We consider other, more complex hedging risks, such as correlation risk, market liquidity risk, prepayment risk and the risks associated with insurance activities. We also take into account balance sheet liquidity risk (for more detail, see [3.6 'Liquidity risk management'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_841)), as pension and actuarial risk also depend on market variables (for more details, see [3.8 'Pension and actuarial risk management'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_847) at the end of this section). Grupo Santander promotes compliance with the obligations under the Fundamental Review of the Trading Book (FRTB) of the Basel Committee and its implementation at European level through the Capital Requirements Regulation II and the EBA guidelines on risks within the market risk perimeter. In 2025 we continued to run these projects to provide our control teams with better tools to manage market risks (including capital consumption): • Ran several initiatives to improve the calculation of capital requirements for market risk under the Fundamental Review of the Trading Book – Standard Approach (FRTB-SA). Specifically, we: ◦ completed the calculation scope for entities and risk factors subject to capital requirements for market risk; ◦ made the changes needed to adapt the calculation to CRR 3; ◦ strengthened the control environment for metrics, static data and technical processes, with a comprehensive review of the data architecture to shorten calculation times and enable simulations; ◦ reinforced the analysis and reporting layer for capital figures under FRTB-SA; ◦ drafted the new regulatory reporting required by the EBA; and ◦ strengthened the current governance framework for FRTB-SA processes by redefining the roles of certain forums, adapting internal regulations and setting new escalation criteria. • Strengthened all processes related to the classification of financial instruments within the fair value hierarchy. • Updated the stress testing programme for trading portfolios in line with regulatory expectations. • Implemented new methodologies in all units for the calculation of valuation adjustments, using corporate tools and applying consistent criteria. • Strengthened reporting to senior management on market risk matters, expanding the content and depth of analysis. • Update of the risk appetite framework for market activities to meet supervisory expectations. • Enhanced the governance framework for the approval and use of market risk models. #### 3.2 Market risk management Market risk monitoring and control recognizes that risk may arise both from internal factors within the unit and from external elements. Thus, we address all potential sources of risk with a coordinated and consistent approach across all our subsidiaries. We provide Group senior management with regular, comprehensive and accurate information that enables us to assess each subsidiary’s risk profile and maintain an overall view of market risk for analysis and control. #### Limits management and control system The market risk function runs daily checks so that market positions remain within approved limits. It also assesses the performance of, and significant changes in, related metrics. Limit setting follows a dynamic process that aligns with the risk appetite and that we set out each year in the limits plan approved by senior management, which applies to all subsidiaries. Annual report 2025569 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | We follow a prudent approach to market risk management, with limits defined for different metrics, including: • value at risk (VaR) and stressed VaR (sVaR) limits; • equivalent and/or nominal position limits; • interest rate sensitivity limits; • vega limits; • limits for risk of delivery of short sales (bonds and equities); • limits to reduce effective losses or protect profits during the year (loss trigger and stop loss); • credit limits (limits for total exposure and jump-to-default by issuer); and • origination limits. These general limits include additional sub-limits to create a sufficiently granular structure so we can control the market risk factors that our trading activity is exposed to. To strengthen this control, we monitor subsidiaries’ positions on a daily basis. We define three levels of limits: global approval and control limits, global approval limits with local control, and local approval and control limits. Each business owner requests them based on business specifics and budget targets, in line with the risk-return relationship. Risk governance bodies approve them in accordance with the established processes. Subsidiaries must adhere to approved limits. If a limit breach occurs, subsidiary business managers must provide a written explanation with an action plan to correct it. #### Market risk-related capital requirements We use internal and standard models to determine market risk- related capital requirements. We also use internal models to calculate regulatory capital for the trading books of our subsidiaries in Chile, Mexico and Spain, which helps diversify its positions). In 2025, despite the delay of the FRTB application date, we continued to enhance market risk capital calculation, with a particular focus on adapting the current infrastructure to the new requirements of the regulatory framework. We also worked on adapting internal regulations and the reporting of market risk capital figures to meet supervisory expectations. We rolled out all these improvements in our core markets through corporate tools, which significantly reduces manual processing and reliance on expert judgement. We calculate the Group’s consolidated regulatory capital under the market risk internal model as the total regulatory capital of the subsidiaries that have the ECB’s approval. This approach is conservative as it does not capture capital savings from geographic diversification. As a result of that ECB approval, we calculate regulatory capital for the trading activity perimeter using advanced methods and these key metrics: value at risk (VaR), stressed VaR, incremental risk charge (IRC) and risk not in model (RNIM), in line with CRR requirements. #### Methodologies and key aspects Value at Risk (VaR) Our standard methodology for managing and controlling trading risk through VaR estimates the maximum expected loss at a 99% confidence level over a one-day horizon. We also apply statistical adjustments to incorporate recent events that affect risk levels in a timely manner. We use a two-year time window, or at least 520 days from the reference date, to calculate VaR. We calculate two VaR figures every day and report the higher of the two. For one of them we apply an exponential decay factor that assigns less weight to older observations, while the other assigns the same weight to all observations. At the same time, we calculate value at earnings (VaE), which measures the maximum potential gain at a specific confidence level and over a specific time horizon, using the same methodology as for VaR. Historical simulation VaR offers many advantages as a risk metric because it expresses the portfolio’s market risk in a single figure based on movements in market factors. However, it also has some limitations: • Since VaR is calibrated to a specific confidence level, it does not capture potential loss levels beyond that threshold. • The liquidity horizon of some products in the portfolio is longer than the one specified in the VaR model. • VaR provides a static analysis of portfolio risk and is exposed to significant, albeit unlikely, daily changes. • It is highly sensitive to the time window used. • It cannot capture plausible, high-impact events if they do not occur within that time window. • Some valuation parameters have no direct market input (such as correlations, dividends and recovery rates). • It adjusts slowly to new volatilities and correlations, as the most recent data carry the same weight as older data. We address some of these limitations by using stressed VaR and expected shortfall (ES), calculating VaR with exponential decay, applying conservative valuation adjustments, and performing analyses and backtesting to assess the accuracy of the VaR model. Stressed VaR (sVaR) and Expected Shortfall (ES) We calculate sVaR daily for our main portfolios using the same calculation methodology as for VaR, with the following exceptions: • We use a time window of 260 observations (compared to 520 for VaR) from a continuous stress period for the portfolio. We perform the calculation for each key portfolio by analysing the historical behaviour of a subset of market risk factors (that we select under expert judgement) and of the most significant positions in the books. • Unlike VaR, we obtain sVaR by taking the percentile with uniform weighting, rather than the highest percentile with exponential and uniform weighting. 10 K: Parameter to calculate regulatory capital consumption for market risk. 11 Vega represents the sensitivity of the value of a portfolio to changes in the value of market volatility. Annual report 2025570 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | We also calculate ES as the expected loss beyond VaR (in our case, at a 99% confidence level) by applying uniform weights to all observations. ES has the advantage of capturing the risk of low- probability, high-loss events (tail risk) and of being a sub-additive metric. According to the Basel Committee, ES at 97.5% is equivalent to the risk captured by VaR at a 99% confidence level. Scenario analysis The risk measures we use in the Group rely on assumptions that support day-to-day management and decision-making in the risk areas. They assume normal market conditions, continuous prices and sufficient liquidity. However, extreme moves or sharp, unexpected market changes may not be properly anticipated. Scenario analysis helps us identify such unexpected outcomes and provides an estimate of how much capital we would need to absorb losses if such events occurred. We regularly calculate and analyse various stress test scenarios for all the Group’s and our subsidiaries’ trading portfolios. The main ones include: • Historical scenarios: we analyse portfolio performance under crisis conditions or significant market events that occurred in the past, estimating maximum losses based on existing positions. • Hypothetical scenarios: we build extreme scenarios based on shocks to risk factors that have not necessarily occurred (for example, abrupt crises, worst-case scenarios, regulatory stress exercises or forward-looking scenarios). They take an ex-ante approach, in contrast to the ex-post nature of historical scenarios. • Reverse stress test scenarios: we identify movements in market variables that would lead to a loss that could jeopardize the Group’s continuity. They complement traditional scenarios and help detect vulnerabilities, hidden risks and interactions between factors. • Climate change scenarios: we analyse the potential impact on trading portfolios of exposure to climate-sensitive activities, considering both physical and transition risks. • Other stress test scenarios: we run additional tests every quarter to estimate losses or significant capital impacts under extreme market movements (for example, IRC scenarios, proxy scenarios in VaR calculation or valuation adjustment scenarios). Calibration and backtesting Regulation requires the VaR model to accurately reflect material risks. Since it relies on statistical techniques under normal conditions, estimated losses may differ from actual losses. We therefore regularly analyse and compare the model’s accuracy to confirm its reliability. We carry out internal backtesting exercises, VaR benchmarking measures and analyses of the assumptions of the portfolios of subsidiaries that use the internal market risk model. In geographies with an approved internal model, we perform regulatory backtesting that identifies exceptions (daily losses or gains that exceed VaR or Value at Earnings – VaE) and their impact on the calculation of regulatory capital. Backtesting assesses the quality and effectiveness of the model. In our analyses we compare the daily VaR or VaE obtained on D-1 with the profit and loss (P&L) recorded on D: economic P&L, actual P&L, hypothetical P&L and theoretical P&L. We apply backtesting daily in the subsidiaries and run additional internal, non-regulatory exercises on a daily, weekly or monthly basis, depending on each portfolio’s level of granularity. The number of exceptions is a key indicator of model performance. Regulatory backtesting covers a one-year period (250 days) and a 99% confidence level, which implies an expectation of between two and three exceptions per year. To determine regulatory capital, we calculate the regulatory K 10 coefficient based on the maximum number of exceptions observed between actual and hypothetical backtesting. Analysis of positions, sensitivities and results At Grupo Santander we use positions to determine the market value of trades in the portfolio, grouped by their main risk factor and taking into account the delta value of futures and options. We express these positions in each subsidiary’s base currency and in the currency used to standardize the information. We monitor exposures daily to detect any issues and address them immediately. Market risk sensitivity estimates the impact on the market value of an instrument or portfolio resulting from a change in a risk factor. We measure it through analytical approximations based on partial derivatives or through a full revaluation of the portfolio. The daily P&L statement and loss account for the market risk area is a key indicator that helps identify the impact of changes in financial variables on the portfolios. Derivatives activities and credit management At Grupo Santander we pay particular attention to controlling derivatives and credit management activities due to their specific nature. We monitor them daily using specific metrics. We monitor and review the sensitivity of underlying assets to price movements (delta and gamma), changes in volatility (Vega 11) and the passage of time (theta). We also systematically analyse spread sensitivity, jump-to-default and position concentrations by rating level. For the credit risk of trading portfolios, we calculate an additional metric — the incremental risk charge (IRC) — in line with Basel Committee recommendations and applicable regulation. IRC covers both default risk and rating migration risk, which VaR does not capture adequately through changes in credit spreads. We mainly apply this metric to fixed income bonds (both sovereign and corporate), bond derivatives (forwards, options, etc.) and credit derivatives (credit default swaps, asset-backed securities, etc.). We calculate IRC from direct measurements of the loss distribution tails at the appropriate percentile (99.9%) over a one-year horizon and follow a Monte Carlo methodology with one million simulations. 12 Certain figures contained in this section have been subject to rounding to enhance their presentation. Accordingly, in certain instances, the sum of the numbers in a column or a row in tables contained in this report may not conform exactly to the total given for that column or row. Annual report 2025571 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Credit valuation adjustment (CVA) and debit valuation adjustment (DVA) The Group calculates trading book results through CVA and DVA. | | | | --- | --- | | | | | | For more details on CVA and DVA see 'Credit risk from financial markets activities' in section 2 [.4 'Other credit risk details'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_820) | #### 3.3 Key market risk metrics 12 In 2025, overall trading risk levels remained relatively low and broadly in line with those of the previous year. We saw some temporary increases mainly driven by tariff negotiations with the United States, uncertainty around central banks’ monetary policies, the geopolitical risk environment (Ukraine and the Middle East) and election periods in some Latin American markets. These isolated episodes of higher risk therefore reflected temporary periods of increased volatility in financial markets rather than a significant increase in positions in our trading portfolios. Trading risks mainly arise from customer activity in non-complex instruments, most of which focus on interest rates and foreign exchange hedging. During 2025, the use of limits for trading activities remained generally moderate. We set limits in line with the Group’s risk appetite for this type of activity. #### VaR analysis The trading strategy focuses on customer-driven activity, minimizing any net directional risk exposure and maintaining diversification by geography and risk factor. This is reflected in the VaR of the CIB trading portfolio. In 2025, VaR ranged between EUR 29.2 million and EUR 9.6 million, while average VaR stood at EUR 17.6 million, above the 2024 and 2023 levels (EUR 17.1 million and EUR 11.7 million, respectively). Market volatility contributed to keeping VaR above the average of the past three years throughout almost the entire period. VaR at the end of December (EUR 18.7 million) was only EUR 0.03 million lower than at 2024 year-end, which still reflects high market volatility, ongoing geopolitical risk and concern about inflation trends, which could increase again as a result of new trade policies in the US. By risk factor, average VaR was higher for several risk factors and especially for foreign exchange risk, given the high volatility in some currencies such as the US dollar and the Argentine peso. Temporary jumps in VaR for the different factors usually stemmed from short-lived increases in market price volatility rather than from significant changes in positions. By geographic area, average VaR in Europe exceeded the 2024 average, mainly due to interest rate and foreign exchange risk factors, while it remained below that level in North and South America. | | | | --- | --- | | | | | | For more details on VaR and expected shortfall (ES) by risk factor and region see table on section ['2. Trading market risk management'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1282) [,](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1261) in Note 54 to the consolidated financial statement | | | | --- | | | | VaR 2023-2025 | | EUR million. VaR at 99% over a one day horizon | ![VaREvolENGdec.jpg]() Annual report 2025572 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Backtesting Actual losses may differ from those forecasted by VaR because of the above-mentioned limitations of this metric. At Santander we review the accuracy of the VaR calculation model to confirm its reliability (see ‘Methodologies’ in section [3.2 ‘Market risk](#i6ecb2a0d58d04b53bfadfa2a833efaa7_829) [management’](#i6ecb2a0d58d04b53bfadfa2a833efaa7_829)). The main tests consist of backtesting exercises: • In hypothetical P&L backtesting for the total portfolio, we observed two exceptions (daily loss higher than VaR or daily gain higher than VaE) to VaR at a 99% confidence level in 2025 — on 9 and 11 April — as a result of high market volatility, mainly driven by uncertainty about the potential impact of new trade policies in the United States. We did not observe any exceptions to VaE at a 99% confidence level in 2025. • The outcome of the exercise in the past year aligns with the assumptions of the VaR calculation model. | | | --- | | | | Backtesting of trading portfolios: daily results vs. VaR for previous day | | EUR million | ![BacktestingENGdec.jpg]() #### Derivatives risk management Our derivatives business mainly involves selling investment products and providing risk hedging for customers. Our risk management aims to keep net open risk as low as possible. Transactions include equity, fixed income and foreign exchange options, primarily in Spain, Brazil, the United Kingdom, the United States and Mexico. The following chart shows the trend in Vega VaR for the structural derivatives business over the past three years. In general, higher VaR levels relate to significant, temporary increases in market volatility, for example, due to changes in monetary policy in response to changes in inflation, periods of political uncertainty in some of our markets, or uncertainty around new US trade tariffs. | | | --- | | | | Change in risk over time (VaR) of structure derivatives | | EUR million. VaR Vega at a 99% over a one day horizon | ![VaRVegaEvolENGdec.jpg]() Annual report 2025573 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Average VaR mainly reflected equity risk, followed by foreign exchange and interest rate risk. Average risk in 2025 (EUR 6.5 million) exceeded the 2024 and 2023 levels amid trade and geopolitical tensions, as shown in the table below: | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Financial derivatives. Risk (VaR) by risk factor | | | | | | | | | | | | EUR million. VaR at a 99% over a one day horizon | | | | | | | | | | | | c | | | | | | | | | | | | | 2025 | | | | | 2024 | | | 2023 | | | | Minimum | Average | Maximum | Latest | | Average | Latest | | Average | Latest | | Total VaR Vega | 3.4 | 6.5 | 12.6 | 7.0 | | 3.5 | 4.5 | | 2.4 | 2.1 | | Diversification effect | (0.9) | (1.3) | (2.4) | (1.8) | | (2.0) | (1.7) | | (1.9) | (1.2) | | Interest rate VaR | 0.6 | 0.9 | 1.8 | 0.7 | | 1.3 | 0.9 | | 2.0 | 1.5 | | Equity VaR | 3.0 | 5.7 | 10.9 | 6.9 | | 3.1 | 3.8 | | 1.4 | 1.2 | | FX VaR | 0.7 | 1.2 | 2.3 | 1.2 | | 1.1 | 1.5 | | 0.9 | 0.6 | | Commodity VaR | — | — | — | — | | — | — | | — | — | Santander’s exposure to complex structured instruments or vehicles is very limited, which reflects our risk culture and prudent risk management. The Group’s risk appetite caps total level 3 assets and liabilities (those whose fair value is measured using significant unobservable market inputs) at 5% of the Group’s total assets and liabilities measured at fair value. At the end of December, our exposures to hedge funds stood at EUR 115 million, all of them indirect as we act as counterparty in derivatives transactions. We analyse the risk associated with these counterparties case by case and set collateralization levels according to each fund’s characteristics and assets. Our policy for approving new transactions in these products remains prudent and conservative, and senior management oversees it. #### Scenario analysis As for the results of the stress test scenarios, the following table shows the worst case (maximum volatility) outcome at the end of December. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | Stress scenario: maximum volatility (worst case) | | | | | | | | EUR million. Dec. 25 data | | | | | | | | | Interest rate | Equities | Exchange rate | Credit spread | Commodities | Total | | Total trading | (128.3) | 25.7 | (80.3) | (119.5) | — | (302.4) | | Europe | (70.3) | 28.2 | (75.1) | (42.7) | — | (159.9) | | North America | (37.2) | 0.1 | (2.2) | (76.8) | — | (116.1) | | South America | (20.8) | (2.6) | (3.0) | — | — | (26.4) | The analysis shows that the Group would suffer an economic impact of EUR 302 million on its trading portfolios in mark-to- market terms if the worst-case stress movements were to materialize. The loss would mainly affect Europe (in foreign exchange in a euro appreciation scenario, followed by interest rates in an upward-rate scenario, and lastly in credit spreads in a widening scenario) and North America (mainly in credit spreads in a widening scenario, followed by interest rates in an downward- rate scenario). Annual report 2025574 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Connection with balance sheet items The following table sets out the items in Grupo Santander’s consolidated position balance sheet that are subject to market risk, distinguishing between positions whose main risk metric is VaR and those whose risk we monitor using other metrics. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Risk metric values on the consolidated balance sheet | | | | | | EUR million. Dec. 25 data | | | | | | | | | | | | | | Main market risk metrics | | | | Assets subject to market risk | Balance sheet amount | VaR | Other | Main risk factors for 'Other' balance | | Cash, cash balances at central banks and other deposits on demand | 152,281 | | 152,281 | Interest rate | | Financial assets held for trading | 252,318 | 252,318 | | | | Non-trading financial assets mandatorily at fair value through profit or loss | 7,761 | 5,815 | 1,946 | Interest rate, spread | | Financial assets designated at fair value through profit or loss | 8,046 | — | 8,046 | Interest rate, spread | | Financial assets at fair value through other comprehensive income | 74,612 | 2,281 | 72,331 | Interest rate, spread | | Financial assets measured at amortised cost | 1,202,689 | | 1,202,689 | Interest rate, spread | | Hedging derivatives | 3,931 | | 3,931 | Interest rate, exchange rate | | Changes in the fair value of hedged items in portfolio hedges of interest risk | 50 | | 50 | Interest rate | | Other assets | 165,827 | | | | | Total assets | 1,867,515 | | | | | | | | | | | Liabilities subject to market risk | | | | | | Financial liabilities held for trading | 171,546 | 171,546 | | | | Financial liabilities designated at fair value through profit or loss | 42,148 | — | 42,148 | Interest rate, spread | | Financial liabilities at amortised cost | 1,421,184 | | 1,421,184 | Interest rate, spread | | Hedging derivatives | 4,248 | | 4,248 | Interest rate, exchange rate | | Changes in the fair value hedged items in portfolio hedges of interest rate risk | 49 | | 49 | Interest rate | | Other liabilities | 115,592 | | | | | Total liabilities | 1,754,767 | | | | | Total equity | 112,748 | | | | #### 3.4 Structural balance sheet risk #### management Structural risk is the risk that market or balance sheet movements will change the value or profit generation of assets or liabilities in the banking book. It also includes risks related to insurance and pensions, as well as the risk that we may not have sufficient capital, in amount or quality, to meet internal business objectives, regulatory requirements or market expectations. In 2025 we introduced improvements to provide control teams with better tools to manage structural balance sheet risks: • We reviewed and expanded the scenarios we use to monitor structural interest rate risk by adding new historical scenarios and analysing how exposures change when we adjust the parameters of the most significant models. • We strengthened controls over IRRBB reporting to make the data we submit regularly to supervisors more consistent. • We reinforced oversight of model backtesting exercises to confirm that the parameters we applied remain appropriate. • We enhanced the foreign exchange (FX) control framework by adding additional metrics to monitor the impact on capital of adverse exchange rate movements. #### Limits management and control systems Internal policies set by senior management define the control and oversight mechanisms for structural risk in line with regulatory requirements and our risk appetite. These mechanisms take into account the structural risk sub-types, as well as their implications, contingencies and interrelationships. The structural risk function, part of the second line of defence, aims to promote that this risk is understood, controlled and reported to senior management in line with the established governance by: • setting interest rate risk metrics and reviewing and challenging the structural risk appetite and the limits proposed by the first line of defence; • overseeing structural risk management by the first line and verifying compliance with the established limits; • reporting regularly to senior management on the risk profile and providing guidance to the business lines on any measures that need to be taken; 13 Certain figures contained in this section have been subject to rounding to enhance their presentation. Accordingly, in certain instances, the sum of the numbers in a column or a row in tables contained in this report may not conform exactly to the total given for that column or row. Annual report 2025575 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | • assessing and challenging commercial proposals and providing senior management and business units with the information they need to understand interest rate risk in the Group’s businesses and transactions; and • establishing and updating models and policies and confirming that structural risk management procedures remain appropriate. As with market risk, we have a framework that sets out the annual plan for establishing structural balance sheet risk limits in line with the risk appetite. The main limits are: • Structural interest risk in the banking book: • Net interest income (NII) sensitivity limit over a one-year horizon. • Economic value of equity (EVE) sensitivity limit. • Limit of the negative impact on shareholder equity of changes to the value of assets carried at fair value in the banking book stemming from adverse movements in the market. • Structural FX risk: • Limit on the net permanent position of the core capital ratio. • Limit on the individual hedge required for each currency. We complement these limits with other triggers and alerts that monitor specific aspects of these risks and supplement the metrics described above. Business line risk managers must explain any excesses over limits or sub-limits and provide an action plan to correct them. #### Methodologies and other key details Structural interest rate risk Within structural risk, interest rate risk in the banking book (IRRBB) is the main source of balance sheet risk. We analyse the potential impact of interest rate changes to the currencies in which we operate on the economic value of equity (EVE) and net interest income (NII).As impacts will differ based on how rates move, it’s therefore necessary to monitor and manage several interest rate risk sub-types, such as repricing risk, yield curve risk, basis risk and optionality risk (automatic and behavioural). Depending on the balance sheet interest rate position and market conditions and outlook, we may need to take financial measures to achieve the risk profile that the Group defines. We mainly monitor IRRBB through NII and EVE sensitivity metrics to interest rate movements. • Net interest income and its sensitivities. NII is the difference between interest income on assets and interest expense on liabilities in the banking book over a given time horizon (typically one to three years, with one year as the Group standard). This metric helps identify short-term risks and complements the sensitivity of the economic value of equity (EVE). • Economic value of equity and its sensitivities. EVE is the difference between the net present value of assets and the net present value of interest-bearing banking book liabilities, excluding equity and other non-interest-bearing instruments. This metric helps identify long-term risks and complements NII sensitivity. Credit spread risk Among the metrics we use to monitor credit spread risk in the banking book (CSRBB), the main ones are NII and EVE sensitivity to changes in spread curves, as well as the impact of stress scenarios on positions identified as subject to CSRBB. Interest rate models Interest rate risk metrics take into account how different financial products behave under stressed scenarios, where uncertainty is common and contractual terms may not be fulfilled. We have developed methodologies that help explain how these products would perform in such conditions. These are our key interest rate risk models: • Treatment of liabilities without stated maturity. The Group’s model shows balances of all accounts without maturity using stable and unstable volumes, settlement speed over time, customer and market types, and other variables. • Prepayment treatment for certain assets. Prepayment risk mainly affects fixed-rate mortgages in subsidiaries where contractual rates are below market rates and customers have the incentive to pay off all or part of their mortgage early. Structural exchange rate risk/hedging of results We monitor these activities daily using position measures, VaR and results. We introduced new limits to FX positions in the banking book in 2024, allowing us to complement the structural FX metrics and monitor exchange rate risk in full. Structural equity risk We measure equity positions, VaR and P&L. #### 3.5 Key structural balance sheet #### risk metrics 13 The market risk profile inherent to the Group’s balance sheet remained at moderate levels in 2025, in line with previous years. The Finance division of each subsidiary manages the interest rate risk arising from its commercial banking activity and is responsible for managing structural risk driven by interest rate fluctuations. Santander measures interest rate risk by analysing changes in the economic value of equity and in net interest income caused by changes in interest rates (both parallel and non-parallel), balance sheet composition, and shifts in customer behaviour. Once we have measured these risks, we decide whether to implement structural risk mitigation strategies using interest rate instruments, such as purchases of fixed income bond portfolios and derivatives, to keep the interest rate risk profile within the risk appetite. Exposure across all subsidiaries remained moderate in 2025 relative to the annual budget and capital levels. Annual report 2025576 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | The NII and EVE sensitivities below are based on scenarios of parallel interest rate movements between ±100 bps. #### Structural interest rate risk #### Europe At the end of December, net interest income (NII) in our main balance sheets showed positive sensitivities to interest rate increases. At the same date, the economic value of equity (EVE) showed negative sensitivity to interest rate rises. Also at the same date, under the scenarios described above, the most significant NII sensitivity risk related to the euro, at EUR 561 million; pound sterling, at EUR 169 million; the Polish zloty, at EUR 51 million; and the US dollar, at EUR 50 million; with all of them linked to interest rate cut risk. | | | --- | | | | Net interest income (NII) sensitivity | | % of total | | | | | | --- | --- | --- | | | | | | 61.4% | 25.4% | 13.2% | ![1524]() \* Other: Poland, Portugal and Digital Consumer Bank. The most significant risk to the economic value of equity was concentrated in the euro yield curve, at EUR 1,087 million, in pound sterling, at EUR 614 million; the Polish zloty, at EUR 275 million; and the US dollar, at EUR 104 million, with all of them linked to interest rate increase risk. | | | --- | | | | Economic value of equity (EVE) sensitivity | | % of total | | | | | | --- | --- | --- | | | | | | 45.3% | 26.8% | 27.9% | ![1833]() \* Other: Poland, Portugal and Digital Consumer Bank. #### North America At the end of December, net interest income (NII) in our North American balance sheets showed positive sensitivity to interest rate increases in the United States and negative sensitivity to the same scenario in Mexico. In both cases, the economic value of equity (EVE) showed negative sensitivity to interest rate rises. At the same date, the most significant risk to net interest income was concentrated mainly in the US (EUR 49 million). | | | --- | | | | Net interest income (NII) sensitivity | | % of total | | | | | --- | --- | | | | | 75.0% | 25.0% | ![2151]() The most significant risk to the economic value of equity was concentrated in the US (EUR 570 million). | | | --- | | | | Economic value of equity (EVE) sensitivity | | % of total | | | | | --- | --- | | | | | 74.4% | 25.6% | ![2237]() #### South America We generally position economic value and net interest income in our main South American balance sheets for interest rate cuts. At the end of December, the most significant risk to net interest income was mainly in Brazil (EUR 57 million). | | | --- | | | | Net interest income (NII) sensitivity | | % of total | | | | | | --- | --- | --- | | | | | | 75.0% | 5.3% | 19.7% | ![2480]() \* Other: Argentina, Peru, Uruguay and Colombia. The most significant risk to the economic value of equity was mainly in Brazil (EUR 257 million) and Chile (EUR 225 million). | | | --- | | | | Economic value of equity (EVE) | | % of total | | | | | | --- | --- | --- | | | | | | 46.7% | 40.8% | 12.5% | ![2620]() \* Other: Argentina, Peru, Uruguay and Colombia. #### Structural foreign exchange rate risk/results #### hedging Our structural foreign exchange risk mainly arises from foreign currency transactions linked to permanent financial investments, their results, and associated hedges. Our dynamic management of this risk aims to limit the impact of exchange rate movements on the core capital ratio. In 2025, hedging of the currencies that affect the core capital ratio remained close to 100%. In December 2025, the largest permanent exposures (with their potential impact on equity) were, in this order, in pound sterling, US dollars, Brazilian reais, Mexican pesos, Polish zlotys and Chilean pesos. The Group hedges part of these permanent positions with foreign exchange derivatives. The Finance division manages foreign exchange risk and hedges the expected results and dividends of subsidiaries whose functional currency is not the euro. Annual report 2025577 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Structural equity risk Grupo Santander holds equity positions both on its balance sheet (banking book) and in its trading portfolio. We classify these positions as equity instruments or investments, depending on the percentage of ownership or control. At the end of December, the banking book equity and investment portfolio was diversified across securities from various countries, such as Spain, China, Morocco and Poland. Most of the portfolio was invested in the financial and insurance sectors. Other sectors with smaller allocations included real estate activities. Structural equity positions are exposed to market risk. We calculate VaR for these positions using market price series or proxies. At the end of December, VaR at a 99% confidence level over a one-day horizon stood at EUR 147 million (EUR 127 million and EUR 171 million at year-end 2024 and 2023, respectively). #### Structural VaR We use a homogeneous metric such as VaR to monitor overall banking book market risk (excluding CIB trading activity, as described in section [3.3 ‘Key market risk metrics](#i6ecb2a0d58d04b53bfadfa2a833efaa7_832) ’). We distinguish between fixed income — taking into account interest rates and credit spreads in ALCO portfolios — foreign exchange, and equities. Overall, structural VaR is not material in relation to our total asset volume or equity. | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Structural VaR | | | | | | | | | | | | EUR million. VaR at a 99% over a one day horizon. | | | | | | | | | | | | | 2025 | | | | | 2024 | | | 2023 | | | | Minimum | Average | Maximum | Latest | | Average | Latest | | Average | Latest | | Structural VaR | 598.5 | 662.9 | 751.9 | 690.1 | | 747.7 | 687.5 | | 705.0 | 749.5 | | Diversification effect | (155.9) | (258.4) | (265.6) | (206.6) | | (386.4) | (268.6) | | (416.6) | (444.7) | | VaR Interest RateA | 158.3 | 177.3 | 205.8 | 177.6 | | 412.0 | 235.2 | | 348.4 | 380.2 | | VaR Exchange Rate | 486.0 | 597.7 | 648.7 | 572.4 | | 571.7 | 594.4 | | 580.4 | 642.9 | | VaR Equities | 110.1 | 146.3 | 163.0 | 146.7 | | 150.4 | 126.5 | | 192.8 | 171.1 | A. Includes credit spread VaR on ALCO portfolios. #### 3.6 Liquidity risk management Balance sheet liquidity risk is the risk that we may fail to meet payment obligations at maturity or only do so at excessive cost. Losses may arise from forced asset sales or margin impacts caused by mismatches between expected cash inflows and outflows. The second line of defence is responsible for seeing that this risk is understood, controlled and reported to senior management and across the Group in line with the established governance by: • defining liquidity risk and providing detailed assessments of current and emerging material liquidity risks; • defining liquidity risk metrics and reviewing and challenging the risk appetite and the limits that the first line of defence proposes; • assessing and challenging commercial/business proposals and providing senior management and business units with the information they need to understand the liquidity risk of Santander’s businesses and transactions; • overseeing liquidity risk management by the first line and assessing whether businesses remain within liquidity risk limits; • reporting on compliance with risk appetite limits and any exceptions to the governance bodies (risk control committee, risk supervision, regulation and compliance committee and board); • providing a consolidated view of liquidity risk exposures and the liquidity risk profile; and • confirming that suitable liquidity procedures are in place to manage the business within the risk appetite limits. Throughout 2025, market conditions remained stable. Debt markets operated normally and Grupo Santander met its funding targets. Annual report 2025578 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Over the year we strengthened intraday liquidity risk controls to stay aligned with the ECB’s best practice paper on intraday risk management. We also enhanced the liquidity early warning indicator framework by adding an indicator that captures media and social media activity related to the Group. In addition, our subsidiaries maintained solid balance sheets and stable funding structures, supported by a broad customer deposit base that covers structural needs, with low reliance on short-term funding and liquidity metrics well above local, corporate and regulatory requirements and within risk appetite limits. #### 3.7 Key liquidity risk metrics Our strong liquidity position relies on a decentralized model in which each subsidiary manages its liquidity autonomously. We measure liquidity risk with tools and metrics that capture the key risk factors. We calculate regulatory liquidity metrics in line with the criteria set out in the Regulation CRR II and the Directive CRD IV. For internal metrics, we define liquidity scenarios using a combination of observations from actual liquidity crises at other banks, regulatory assumptions, and expert judgement. The Group’s main monitoring metrics are: Regulatory metrics a. Liquidity coverage ratio (LCR) assesses the short-term resilience of our liquidity profile by making sure we have enough high-quality liquid assets to withstand a considerable market stress scenario for 30 calendar days. In 2025, the Group’s LCR remained stable and well above the regulatory threshold. b. Net stable funding ratio (NSFR) measures long-term liquidity risk. It is the ratio of available stable funding to required stable funding. In 2024, the NSFR of our core subsidiaries and the Group remained above the regulatory requirement of 100% and the internal risk appetite. Internal metrics a. Liquidity buffer: assesses whether liquid assets are enough for the bank to survive for set time horizons under several liquidity stress scenarios. b. Wholesale counterparty concentration metric: measures the impact of our largest non-financial counterparties withdrawing deposited funds. We use it to measure the quality of our liquidity and to uncover excessive dependency on a small number of customers. c. Structural asset encumbrance metrics: we calculate two types of metric — the asset encumbrance ratio, which measures the proportion of encumbered assets over the entity’s total assets, and the structural asset encumbrance ratio, which measures the proportion of encumbered assets associated with structural funding (mainly long-term collateralized issuances and central bank funding). d. Other additional liquidity indicators: the Group has defined a set of additional liquidity indicators that complement the above and help measure other liquidity risk factors not covered by them. e. Liquidity risk scenario analysis: the Group has five standard scenarios: i. An idiosyncratic scenario of events that are detrimental only to Santander. ii. A local market scenario of events that are highly detrimental to Grupo Santander’s base country’s financial system or real economy. iii. A global market scenario of events that are highly detrimental to the global financial system. iv. A combined scenario of more severe idiosyncratic and local and global market events, occurring simultaneously in an interconnected manner. v. Climate scenarios, with various stress situations based on the potential economic effects of climate change. We use these stress test outcomes as tools to determine risk appetite and support business decision-making. f. Early-warning liquidity indicators: the early warning system comprises quantitative and qualitative indicators that help identify, at an early stage, situations of liquidity stress or potential weaknesses in the funding and liquidity structure of Group entities. These indicators include both external measures, linked to market financial variables, and internal measures related to our own performance. g. Intraday liquidity metrics: the Group applies the Basel regulatory definition to calculate a set of metrics and stress scenarios that support a high standard of intraday liquidity risk management and control. | | | | --- | --- | | | | | | For more details on liquidity metrics, see section [4](#i6ecb2a0d58d04b53bfadfa2a833efaa7_682) [.4 ‘Liquidity and funding](#i6ecb2a0d58d04b53bfadfa2a833efaa7_682) [management’](#i6ecb2a0d58d04b53bfadfa2a833efaa7_682) in the 'Economic and financial review' chapter. | Annual report 2025579 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### 3.8 Actuarial, pension and insurance risk #### management #### Actuarial risk Actuarial risk in the Group mainly arises from biometric changes in the life expectancy of beneficiaries of defined benefit commitments and from unexpected increases in non-life benefits covered by those commitments. We distinguish the following actuarial risks: • Life liability risk: risk of loss due to changes in the value of pension obligation liabilities as a result of fluctuations in related risk factors: mortality/longevity, morbidity, surrender and lapse, expenses and catastrophe. • Non-life liability risk: risk of loss due to changes in the value of non-life benefit liabilities the Group has undertaken with its employees, driven by fluctuations in related risk factors such as premium insufficiency, reserving risk and catastrophe risk. #### Pension risk In managing the risk of defined benefit employee pension funds, we assume the financial, market, credit and liquidity risks arising from the fund’s assets and investments, as well as the market and actuarial risks associated with the liabilities, namely the pension obligations to our employees. Our main goal in pension risk management and control is to identify, measure, mitigate and report all pension risk sources, while gradually reducing our exposure to this risk over the long term. At Santander we measure pension risk using a VaR methodology and other approaches. We use this metric to set pension risk appetite limits and to calculate economic capital. Each year, we also estimate the combined losses on assets and liabilities under a stress scenario that includes changes in interest rates, exchange rates, inflation, quoted asset prices, real estate prices and credit spreads. Most defined benefit plans are located in the United Kingdom, Brazil, Portugal, Spain and Germany. In 2025, market developments had an overall positive effect on pension risk, mainly due to higher discount rates in our core markets. This effect was offset by rising inflation in markets with significant inflation exposure. Over the year, we continued to implement de-risking measures to reduce our exposure to actuarial and pension risks, taking advantage of the prevailing interest rate environment. Insurance risk Grupo Santander operates an insurance model based mainly on its own insurance companies and on agreements with insurance companies in which it holds a non-controlling interest (joint ventures). These insurance companies take on several types of risk, including financial, non-financial and actuarial risks, in line with each entity’s risk profile. Our main goal in insurance risk management and control is to identify, measure, mitigate and report all risk sources in the insurance business so we can help meet the commitments we make to our policyholders and shareholders. Thus, Santander constantly monitors the solvency of these entities by calculating regulatory solvency levels and checking that they remain within the established risk appetite, among other tools. We also track the most material risks on a continuous basis and, for the most significant ones, we carry out sensitivity analyses and stress scenarios to assess their potential impact. In 2025, the risk profile of the insurance entities remained broadly in line with previous years. Annual report 2025580 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 4. Capital risk #### 4.1 Introduction Within structural risk, Grupo Santander includes the risk of not having sufficient capital to absorb losses arising from its operations or to meet internal business objectives, regulatory requirements or market expectations. As part of the second line of defence, we control and oversee the capital activities that the first line carries out, verifying that capital adequacy and its coverage fit our risk profile and the Group’s strategy. We also oversee and monitor transactions that are considered significant risk transfer (SRT) transactions. Capital activities are encompassed in the Group’s capital framework and model and bring together different processes such as capital planning and adequacy, framed within the strategic plan and the Internal capital adequacy assessment process (ICAAP), as well as subsequent budget execution and monitoring, together with ongoing measurement, reporting and disclosure of capital information. #### 4.2 Capital risk management We independently oversee the capital activities that the first line performs and group them into four key processes aimed at maintaining a solid level of capital and using it efficiently to meet internal solvency objectives and regulatory requirements in line with our risk profile. Capital planning Drawing up of a capital plan that is consistent with the strategic plan, sets solvency objectives, and identifies the measures needed for execution. The control function analyses the plan’s feasibility by identifying, assessing and measuring the risks that could affect its achievement. Capital adequacy A process that evaluates — also under stress scenarios — capital levels in relation to the risks assumed, based on risk identification and assessment and the risk appetite framework. Oversight under this process primarily aims to: • help confirm that all relevant risks we are exposed to in the course of our activity are covered; • verify that the results are reasonable and consistent with the business strategy, the macroeconomic and geopolitical environment, and system variables; and • review that the methodologies and assumptions used are appropriate. Capital risk measurement An internal management process whose main outcome is the regular calculation of the metrics used in capital management, supervisory reports and market disclosure. Ongoing oversight of the Group’s capital measurement is another control function that the second line of defence carries out. We review capital metrics against previously defined thresholds and oversee compliance with the solvency risk appetite to help preserve levels above internal requirements, regulatory requirements and market expectations. Origination (risk transfer initiatives) A process to structure, govern and execute the initiatives originated in the Group to free up own resources, as well as their subsequent monitoring. We oversee securitizations that the supervisor could consider significant risk transfer (SRT) transactions and whose objective is to release capital in accordance with Regulation (EU) 2017/2401 and 2017/2402, articles 243 to 245, on SRT, in which we act as originator. Oversight is a prior step and an essential requirement for the execution of these securitizations (both synthetic and traditional) and applies to every transaction that may lead to a reduction in risk-weighted assets (RWA) under regulatory criteria. The main purpose of this process is to contribute to securitization oversight by analysing the conditions that may affect their consideration as SRT, for example: • that the transaction meets the requirements for an effective transfer of risk; • that the operation complies with all prudential regulation requirements; • that the risk parameters used in the transaction follow the defined methodology; and • that the transaction’s economic rationale fits the established standards. In today’s macroeconomic landscape — marked by geopolitical tensions and greater global uncertainty — we have identified and assessed the potential risks that could affect the Group’s solvency levels and the achievement of internal objectives, and we continuously monitor the main metrics. 14 Certain figures contained in this section have been subject to rounding to enhance their presentation. Accordingly, in certain instances, the sum of the numbers in a column or a row in tables contained in this report may not conform exactly to the total given for that column or row. Annual report 2025581 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | In capital planning, we regularly set uncertainty levels regarding budget execution and assess potential deviations from the projections made. Specifically, we oversee the progress of the organic capital generation plan, the securitization plan and other initiatives with impact on capital, and the supervisory reviews related to capital calculation. In 2025, we continued to strengthen continuous monitoring of subsidiaries’ capital contribution targets so that the risk function could make visible several risks and/or opportunities related to achieving the year’s capital objectives. We also oversaw the impact of market variables on capital levels. The Group continues to apply hedging policies to mitigate exchange-rate volatility in the CET1 ratio. In parallel, and within the risk appetite framework, together with the first line of defence, the function set solvency appetite limits, keeping calibration in line with an overall medium-low risk profile that is resilient to stress conditions. In this context, in 2025 we introduced a new risk appetite metric that extended the scope of the SRTs metric to cover all Risk Transfer, strengthening a metric that is essential to preserve the robustness of capital ratios under both normal and stressed conditions. We also introduced a new economic solvency metric to confirm that our capital base covers the requirements set by our economic capital model, which considers all risks to which the Group is exposed (Pillar 1 and Pillar 2). With regard to planning exercises, during the year we continued to review the Recovery Plan, both at Group level and for subsidiaries, promoting certain improvements to measures and underlying assumptions. Regarding oversight of SRT securitizations, we continued to enhance reporting and governance for corporate monitoring at the origination stage, with a higher degree of standardisation. In addition, we further strengthened transaction monitoring through greater involvement of subsidiaries in periodic analysis exercises and improved process automation by using a corporate tool. 4.3 Key metrics 14 Santander has a strong capital position, consistent with its business model, balance sheet structure, risk profile and regulatory requirements. Our robust balance sheet and profitability enable us to finance growth and continue to accumulate capital. Our model of subsidiaries with autonomy over capital and liquidity enables us to mitigate risk. Our capital metrics are stable, with ratios comfortably above regulatory requirements and at appropriate levels. The distribution of risk-weighted assets (RWA) by risk type and by region at year-end reflects the Group’s core business in credit risk and its geographic diversification: | | | | --- | --- | | | | | RWA by risk type A | | | Dec. 25 data | | | | | --- | | | | RWA by global business | | Dec. 25 data | ![629]() ![631]() A. Credit risk included counterparty credit risk, securitizations and amounts below the thresholds for deduction. Regarding the Group’s solvency levels, the Common Equity Tier 1 (CET1) phased-in ratio at the end of December stood at 13.5%, well above the upper end of our operating range (12%–13%) and our 2025 target. This comfortably exceeds the minimum requirement set by the ECB, which stands at 9.8% in December 2025. In addition, throughout the year, the CET1 ratio remained with a comfortable buffer above the risk appetite levels approved by the Bank’s Board. The increase in CET1 phased-in over the year was 0.7 pp, broken down as follows: • Attributable profit: 223 bps of capital, partly offset by 121 bps corresponding to capital distribution, including shareholder remuneration and the cost of Additional Tier 1 (AT1) obligations. • Net organic RWAs: -25 bps, resulting from business RWA growth net of risk transfer initiatives. • Additionally, -16 bps from regulatory charges and +9 bps from markets and other. | | | | --- | --- | | | | | | For more details, see section 4[.5 ‘Capital management and adequacy.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_685) [Solvency ratios](#i6ecb2a0d58d04b53bfadfa2a833efaa7_685) ' in the 'Economic and financial review' chapter. | 15 Legal proceedings stemming from operational risk. Annual report 2025582 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 5. Operational risk #### 5.1 Introduction Operational risk is present in all products, activities, processes and systems, and is inherent to all business and support areas of the Group. That’s why all Santander employees are responsible for managing and controlling the operational risk that stems from our activities. Santander defines operational risk as the risk of loss resulting from inadequate or failed internal processes, people or systems, or from external events, including legal risk 15, regulatory and conduct compliance risks, model risk and risk categories such as fraud, technology and cyber. #### 5.2 Operational risk management #### Management and control model Our operational risk management and control model sets out the components we need to manage and control this risk throughout the entire management cycle, in line with advanced regulatory standards and industry best practice. Applying the model helps set and update management priorities properly and supports the definition and execution of internal controls to mitigate risk across the organization. This section first describes the risk management cycle and the tools we use to manage and control operational risk. It then focuses on operational resilience and the main operational risks, together with their mitigation plans. Lastly, it describes aspects related to the use of insurance as a risk transfer mechanism and the management of operational risk in the wholesale banking business. The operational risk cycle comprises the following phases: • Strategic planning: This covers the activities needed to define the Group’s target operational risk profile, including risk appetite setting, annual loss estimation, and review of the management perimeter. • Identification and assessment of risks and internal controls: This aims to identify the risks and factors that may give rise to operational risk in the organization and to assess their potential quantitative and qualitative impact. • Ongoing monitoring of the operational risk profile: This involves regular analysis of the available information on the nature and scope of the risks incurred in the course of the Group’s activities, using an appropriate alert system based on tools such as indicators and escalation procedures. • Response decisions, including mitigation and risk transfer measures: As operational risk may arise in any Group process, its management requires decisions on unacceptable risks after identification and assessment. The analysis of operational risk exposure may conclude with acceptance of the risk level, implementation of action plans to manage it, risk transfer through insurance or other outsourcing mechanisms, or, alternatively, the discontinuation of the related activity. Against this backdrop, contingency and business continuity plans play a key role as they enable the entity to maintain its activity and limit losses in the event of severe business interruptions, which are particularly sensitive in financial markets. Specifically, and in line with the EU’s Digital Operational Resilience Regulation (DORA), the Group needs to strengthen its digital operational resilience to support the integrity and reliability of operations, protect the security of networks and information systems, and maintain the continuous delivery of financial services, even in the event of disruptions. • Disclosure and reporting of information needed for decision- making. Additionally, Grupo Santander has several tools that support effective management and control of risk throughout the management cycle, such as: ![InstrumentosPuzzleENG.jpg]() Annual report 2025583 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | Internal event database This database collects and records internal operational risk events that may have a financial impact (for example, losses and provisions, regardless of their amount) or a non-financial impact (such as regulatory, customer and/or service impact). This information: • enables us to conduct root-cause analysis; • promotes risk awareness to enhance management; • supports the escalation of major events to senior risk management as quickly as possible; • allows for regulatory reporting; and • supports the development of the economic capital model within the ICAAP. External event database The external event database is a complementary source of information to internal events and helps bolster operational risk management. It contains quantitative and qualitative information on external operational risk events to enable detailed analysis of key industry events, comparison with the Group’s and subsidiaries’ loss profiles, and preparation of the operational risk and control self-assessment (RCSA) exercises, the analysis of potential insurance coverage, and scenario analysis. Scenario analysis This tool helps identify very low probability events that could result in significant losses and supports the definition of appropriate mitigation measures, based on the assessment and expert judgement of the business lines and risk managers. Scenario analysis results feed into the economic capital models. Risk control self-assessment (RCSA) The RCSA exercise consists of assessing the activities underlying the Group’s various operations and quantifying their main risks and vulnerabilities. Its purpose is to assess operational risks in terms of inherent and residual risk, the design and effectiveness of controls, and the need for further enhancements to controls or new mitigation actions. It also includes detailed reviews to identify cyber, technology, fraud and supplier management risk factors, as well as any others that may generate operational risk and/or regulatory breaches. RCSA incorporates reviews related to regulatory compliance, conduct risk and financial crime. Key operational risks A top-down assessment of operational risks that takes into account senior management’s concerns and considerations regarding several aspects of operational risk so the organization can assess them properly and include them in the RCSA. Key risk indicators Metrics that measure specific aspects of risks and provide quantitative information on our exposure and control environment. The most significant indicators linked to the main risk factors form part of the operational risk appetite. Risk appetite This comprises the following structure: • A global non-financial risk appetite statement, which reflects Grupo Santander’s commitment to control and limit non- financial risk events that may lead to financial losses, fraud events, operational and technology incidents, legal and regulatory breaches, issues linked to employee conduct, or damage to reputation. This statement is linked to loss and control environment metrics. • Specific statements on technology, cybersecurity, cloud, fraud, financial crime, product sales, regulatory compliance, model risk, data management and supplier management risks, each associated with its own forward-looking monitoring metrics. Economic capital model Santander’s economic capital model for operational risk applies a loss distribution approach (LDA) that captures our operational risk profile and calculates economic capital based on information from the internal event database, external events and scenario analysis. We use it to determine economic capital for operational risk and to estimate expected and stressed loss, which helps set operational risk appetite. We also use other tools to analyse and manage operational risk, including: the assessment of new products and services, transformation initiatives, business continuity plans, review of the management perimeter and the coverage of corporate insurance policies, recommendations from internal and external auditors and supervisors, and quality assurance for the operational risk programme. Our operational risk management, assessment and reporting system (Heracles) supports our programmes and tools under a governance, risk and compliance approach and provides information at subsidiary and Group level. It also enhances management decision-making by using common taxonomies and methodological standards, while avoiding duplication and simplifying reporting. Through Heracles we help employees maintain an updated, complete and accurate view of their operational risks. #### Operational resilience and business #### continuity plan The digital transformation, accelerated by the entry of new players with more digital business models, is revolutionizing how banks operate. While these structural changes create new business opportunities, they also increase exposure to certain risks, such as technology and cyberrisk, and heighten dependence on external providers, which increases potential exposure to events that may affect our operations and the services we provide to customers. For this reason, regulation continues to emphasize the importance of operational resilience through: • the EU Digital Operational Resilience Act (DORA) and its implementing standards, which broaden the perspective on information and communication technology risk, understood as any reasonably identifiable circumstance related to the use of networks and information systems that, should it materialize, may compromise the security of networks and systems, tools or processes, operations or the delivery of services; Annual report 2025584 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | • the Basel Principles for Operational Resilience guidance; and • The 'Building the UK financial sector’s operational resilience' framework issued by the Bank of England, the Financial Conduct Authority and the Prudential Regulation Authority. These regulations require us to strengthen our ability to prevent and recover from disruptive events and support the continued delivery of services to our customers across all our businesses, as well as preserve systemic stability. To comply with these regulations and support the continuity of our customer services, we have an operational resilience and business continuity management system designed to support the continuity of services and activities across all our subsidiaries in the event of a disaster or major incident. It is a holistic management process that identifies potential threats and their impact on our operations and resources (people, applications, data, premises, among others) and defines appropriate protocols and procedures to enable an effective response and recovery in the shortest possible time. Our operational resilience and business continuity application (ARK@) is essential to maintain and manage the information associated with this process. In 2025, we continued to strengthen our business continuity management system, with particular focus on: • identifying critical services and setting impact tolerances for the interruption of each of them in line with the Group’s risk appetite and risk profile; • drawing up internal continuity strategies or alternative procedures to minimize the impact on business activities of potential disruptions to services that critical suppliers provide; • carrying out mandatory risk assessments and cost–benefit analyses to select the continuity strategies needed for each identified contingency scenario; • strengthening the annual tests that cover all strategies and plans for each scenario (mainly scenarios of application and data unavailability); and • enhancing the methodology to manage and monitor the maturity level of subsidiaries’ business continuity programmes. #### Main mitigating measures Mitigation measures aim to reduce or eliminate exposure to the main risk drivers identified through internal tools and external sources, as well as to emerging or potentially material risks. Below we describe the main operational risk drivers, such as fraud, cyberrisk, technology risk and supplier management risk, and their related mitigation measures. #### Fraud Business transformation and digitalisation, together with the emergence of artificial intelligence (AI), have given rise to new risks and threats, such as an increase in payment scams and fraud in credit origination. To mitigate these risks, we have strengthened control mechanisms and implemented new solutions, such as: • the use of enhanced customer authentication; • reinforced anti-fraud alerts in origination; and • transaction monitoring that draws on advanced fraud prevention models. Other examples of fraud controls we are introducing in online banking include: • strong customer authentication and signing to approve transactions; • behavioural biometrics and anti-malware protection; and • secure identification and registration of customer devices. #### Cyberrisk At Santander, cyberrisk management is an integral part of our risk management and control model. Our cybersecurity management approach is aligned with international best practices and provides a framework to measure and supervise the cyberrisk profile and control environment, including threats and incidents associated with the use of external service providers. The growing reliance on digital systems places cybersecurity at the core of managing non-financial risks in the financial industry. Our goal is to make Grupo Santander a cyber-resilient organization, capable of preventing, detecting and quickly responding to cyberattacks, while continuously improving and evolving our defences. Ransomware, in all its forms—including data encryption and exfiltration—remains one of the most significant external threats, with growing sophistication and a broader range of techniques. These techniques are progressively shifting towards non- traditional targets, such as the supply chain, software development processes and identity-based vectors. The risk of distributed denial-of-service (DDoS) attacks also remains, particularly in contexts of heightened geopolitical tensions. Against this backdrop, recent changes to the Group’s structure — driven in particular by developments in the business in Poland (see section[9. 'New reporting structure from 1 January 2026'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_766) in the 'Economic and financial review' chapter) and the United Kingdom (see section [2. '](#i03b6b883fecf470cb1d27ce9efb48134_16640)[Significant events in 2025'](#i03b6b883fecf470cb1d27ce9efb48134_16640) in the 'Economic and financial review' chapter) — call for increased focus on mitigating these cyber risks. These approaches rely on close collaboration across the Group’s different organisations, strengthened oversight of transformation processes to identify and mitigate potential risks, and the adoption of robust, tailored cybersecurity measures that are embedded across change processes end to end. In this context, multiple events have been responded to in recent years, including those involving third-party service providers. For example, on May 14, 2024, Santander announced that it had become aware of unauthorized access to a Santander database, which included certain customer and employee information hosted by a third-party provider. During 2025, no cybersecurity events materially affected the Group’s operations or customer data. Annual report 2025585 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | From the second line of defence perspective, we have a framework to measure and monitor the cyberrisk profile and its control environment. The key aspects of our cyberrisk oversight programme in 2025 were: • extending the scope and perimeter of the second line of defence global centre of excellence for cyberrisk, which helps strengthen risk control activities and improve efficiency, simplification and harmonization; • reviewing oversight processes (risk indicators, risk appetite, reference risks, controls and dashboards); and • automating and enhancing dashboards by integrating numerous information sources and providing a consolidated view of cyberrisk. | | | | --- | --- | | | | | | For more details on cybersecurity, see section ' [7. Technological](#i6ecb2a0d58d04b53bfadfa2a833efaa7_769) [innovation: artificial intelligence, cybersecurity and fintech](#i6ecb2a0d58d04b53bfadfa2a833efaa7_769) [ecosystem](#i6ecb2a0d58d04b53bfadfa2a833efaa7_769)' in the 'Economic and financial review' chapter. | #### IT risk The ambition to make Santander an open financial services platform, driven by digital transformation, requires ongoing review, assessment and enhancement of our controls to manage and mitigate technology risk. We continue to operate in a demanding and constantly changing environment. Thus, we keep adapting our business model and technology rapidly to support global businesses in their digital transformation, providing them with global platforms that integrate innovative capabilities to meet new customer needs and comply with new regulatory requirements. This effort aims to build a global digital bank that can adapt to changing market demands. The most salient aspects of our IT risk management programme in 2025 were: • monitoring the automation of technology-event classification to align with DORA criteria; • ongoing reduction of obsolescence in key technology assets to make our risk appetite more demanding; • focusing on the evolution of indicators to improve monitoring of continuity testing and the quality and integrity of inventories; • designing a methodology to test new IT controls under the process standardization initiative led by the first line of defence, together with its application to established processes. • we continued to enhance automation to correlate data, identify inconsistencies and outstanding actions, and analyse and report on technology risks, which helps collect and consolidate information, prioritize risk management activities and support more effective independent oversight; and • making headway with the implementation of automated solutions to analyse controls related to events and changes, strengthening the supervision and control of technology risk. #### Supplier risk management Our digitalization strategy seeks to offer customers the best solutions and products in the market. This may involve an increase in services provided by third parties, greater use of cloud services, and a more intensive use of new technologies. In 2025, we strengthened our supplier and outsourcing risk management model and the internal control framework in response to an increasingly demanding regulatory environment — particularly the entry into force of DORA and the update of the EBA Guidelines — and to rising risks linked to the cyber environment, sustainability and the complexity of global supply chains. During the year, we continued to stabilize and progressively adopt the technology platform implemented in 2024, which is a key component for integrated management of third-party risks across the Group. We continued to strengthen our methodologies and contractual frameworks to enhance the oversight of supplier risk in our subsidiaries. We also apply a risk-based approach that pays particular attention to those suppliers that may pose a higher level of risk to our operations and customer services in the Group’s subsidiaries. Against this backdrop, we intensified oversight of these suppliers so that they: • maintain an appropriate control environment, in line with Group policies, and mitigate the risk level of the service provided; • have business continuity plans that support service delivery in the event of disruptive events; • maintain appropriate controls to protect sensitive information processed during service delivery; • insert clauses in contracts and agreements with third parties to protect the interests of our customers and the Group, while meeting current legal obligations; • are subject to ongoing supervision and monitoring, with a particular focus on service level agreement follow-up and regular testing and review of business continuity plans and related provider tests; and • put exit strategies in place, including service reversal or migration plans, for services that have a material impact on business continuity and are complex to replace. At Grupo Santander, we continue to embed sustainability factors risk factors in our strategy and culture to build a more sustainable bank. We have reinforced our certification process, in order to verify whether our suppliers follow the Group’s sustainability standards and criteria, given their potential impact on the environment and broader society. #### Other key mitigating actions We are continuously improving mitigation measures related to customer practices, products and business. Santander has specific frameworks and policies on the sale and marketing of products and services, management and analysis of customer complaints, financial crime prevention and compliance with new regulations. | | | | --- | --- | | | | | | For more details on compliance risk mitigation, see section 6 [.2 'Compliance risk management'.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_880) | 16 SaaS - Software as a Service Annual report 2025586 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Insurance in operational risk management At Santander, we consider insurance as an important element in operational risk management. The corporate insurance function is responsible for optimizing protection of the income statement through risk-transfer mechanisms. The Group’s global insurance programmes cover physical damage to tangible assets, civil liability, fraud, costs arising from cybersecurity incidents, and third-party claims against Group executives. We supplement these global programmes with a wide range of local policies tailored to each subsidiary’s specific circumstances and contracted in line with the insurable risk management model rolled out by the corporate insurance function in each market. This function, together with the Non-Financial Risks (NFR) area, continuously monitors and oversees the correct application of policies and procedures for managing insurable risk in the entities. Collaboration between both functions is based on: • NFR’s participation, as a permanent member, in the quarterly own-insurance forum; • NFR’s participation in the quarterly claims forum, which monitors and boosts loss recovery through insurance; • procedures that define the interaction model between NFR and Corporate Insurance, as well as with other functions involved in different types of insurance (real estate, cybersecurity, legal and others), to support appropriate management throughout the identification, assessment, transfer and retention of risk; and • coordinated, twice-yearly mapping of risks and insurance in the Group to monitor the effectiveness of existing coverage and identify and correct any gaps. We continue to adapt our use of insurance to align our management approach with changes in the risk environment. As a result, we broadened our analysis and implemented coverage related to climate change, cyberrisk, the digital environment and other elements, so that NFR and Corporate Insurance policies and governance respond to these and other emerging transversal risks. | | | | | --- | --- | --- | | | | | | | | | | | Award.gif At the end of 2025, Santander received Zurich Insurance’s Risk Management Award. This award recognises companies in Spain that lead the implementation of innovative risk management strategies, strengthening their security and resilience. In this fourth edition, Banco Santander won the award due to the strong integration of the risk function across the organisation, its advanced risk treatment and transfer mechanisms, and the milestones achieved and projects underway. | | | | | | | | | | | #### Analysis and oversight of controls in Corporate #### & Investment Banking (CIB) CIB must continuously enhance the management and control of operational risks linked to its activities due to the nature, specificity and complexity of financial markets. In 2025, it made progress primarily in these areas: • Optimizing processes and driving automation and operational excellence in the services we provide to our customers, based on a quality culture that promotes the highest management standards in all geographies where CIB operates. • Strengthening the control framework over market activities, improving control design and execution quality. Unauthorized trading risk remains one of CIB’s main management focus areas, for which strict controls are in place. • Reinforcing third-party risk governance and oversight, tightening control of critical and high-risk services and broadening the scope to include highly dependent suppliers and single points of failure, whose disruption would have a material operational impact. We strengthened risk reviews, checks on critical processes and mitigation measures, while also checking full compliance with DORA requirements. On cybersecurity controls, we enhanced protection measures against information leaks and cyber attacks in connections with third parties (including SaaS 16 providers), strengthened user access controls to systems (privileged user access), reinforced technology contingency testing, and implemented new controls to meet new DORA requirements. In addition, we stepped up supervisory and challenge exercises to confirm proper control execution. 17 Certain figures contained in this section have been subject to rounding to enhance their presentation. Accordingly, in certain instances, the sum of the numbers in a column or a row in tables contained in this report may not conform exactly to the total given for that column or row. 18 The Basel categories incorporate risks which are detailed in section 6 'Compliance risk'. Annual report 2025587 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 5.3 Key metrics 17 The distribution of net losses (including incurred losses and net provision charges) by Basel18 operational risk categories over the past three years is as follows: | | | --- | | | | Net losses by operational risk category A | | (% o/total). Dec. 25 data | ![140]() A. Does not include employees litigations in Brazil. Santander considers employee litigation in Santander Brasil as a personnel expense. Our governance bodies (risk control committee, risk supervision, regulation and compliance committee and board of directors) continuously monitor expense levels using specific risk appetite metrics and adopt special measures to reduce them. These expenses are reported under the categories defined by the Basel framework for operational risk. In 2025, the most significant losses by category and geography relate to litigation in Santander Brasil, the UK, Poland and Spain. During the year, operational risk losses in the UK remain affected by provisions recognised for the Motor Finance (motor finance commissions) case. For more information on operational risk losses, see Grupo Santander's Prudential Relevance Report (Pillar 3). The net losses by country were: | | | --- | | | | Net losses by country A | | (% o/total). Dec. 25 data | ![1027]() A. Does not include employees litigations in Brazil. Annual report 2025588 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 6. Compliance risk #### 6.1 Introduction The compliance function is an independent control function within the second line of defence. It reports directly and regularly to the board of directors and its committees through the Group CCO. It facilitates critical, independent debate, oversight and control in terms of corporate compliance, conduct and reputational risk, and financial crime. This includes reporting on compliance-related risks and the effectiveness of the compliance programme in managing them. The function works closely with the wider risk team to support and promote a common risk and compliance culture. Our compliance operating model and framework are well established and delivered consistently across the Group. They consider applicable legal and regulatory requirements and expectations of the Group, and promote well-defined ethical principles and good conduct requirements for the benefit of employees, customers, shareholders and the communities we serve. During 2025, we continued consolidating and strengthening its programme to deliver resilient and effective compliance management in the face of increasing geopolitical uncertainty and ongoing regulatory change. Key priorities include reinforcing oversight of compliance and financial crime risks across the Group, enhancing the use of data analytics and technology to support risk identification and reporting and driving greater consistency and coordination across global compliance teams. These actions aim to keep the function forward-looking, risk-based and aligned with both internal expectations and external supervisory standards. #### 6.2 Compliance risk management We have a robust and consistent framework to meet legal and regulatory requirements at Group and subsidiary level. The underlying core programmes are risk-based and reflect the size and complexity of the Group. The key risks covered in this section include: • Employees compliance: risk of non-compliance with legal and regulatory requirements as outlined in Grupo Santander’s General Code of Conduct (GCC), due to the behaviours and conduct of our employees. Every employee is expected to operate on the basis of the highest ethical considerations and to be free of any conflict of interest at all times. • Conduct risk: risk arising from inadequate practices in the Group's relationship with customers, including how they are treated and the suitability of products and services. Inadequate treatment includes the risk of not taking due account of customer vulnerability, so that we act in their best interests and offer viable solutions where possible. • Reputational risk: risk of current or potential negative economic impact due to damage to the perception of the bank among employees, customers, shareholders, investors and the wider community. • Financial crime risk: risk arising from the potential misuse of the Group’s resources, products or services for criminal or illicit purposes, including money laundering, terrorism financing, breaches or circumvention of international sanctions programmes, financing of the proliferation of weapons of mass destruction and other crimes, such as corruption, bribery, etc. #### Corporate compliance This function oversees and controls regulatory risk relating to employees, personal data processing, securities markets (markets conduct) and regulatory disclosures to the Spanish securities market authority, Comisión Nacional del Mercado de Valores, (CNMV), and other regulatory bodies where Santander is a publicly traded company. The core elements of corporate compliance are: A. Employees We promote a culture of ethical behaviour and compliance among our employees, with standards for preventing corporate financial crime risk, conflicts of interest and anti-competitive practices according to the GCC. To support this, we operate Canal Abierto, Grupo Santander’s whistleblowing channel, through which employees and other stakeholders can anonymously and confidentially report financial and accounting irregularities, as well as breaches of internal or external regulations and corporate behaviours. 19 European Market Infrastructure Regulation. Annual report 2025589 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Employees’ compliance | | | | | | | | | | | | Canal Abierto | | | Training and awareness | | | Altavoz.jpg | → Provide a channel for employees to report unethical conduct and breaches of internal or external regulations. → Promote a culture of speaking up and truly listening. → Investigate conduct that is misaligned with our ethics and compliance principles, and take the necessary measures when appropriate. | | EducacionBorla.jpg | → Develop employee training programmes and awareness campaigns on corporate defense, antitrust and employee compliance. → Provide ongoing communications about ethics and expected employee conduct to the entire Group to build relationships based on trust. | | | | | | | | Policies and procedures | | | Queries about ethics | | | | → Promote compliance with the Group’s GCC and enact specific policies and procedures to enforce it. → Report to governing bodies regularly. | | Help.jpg | → Manage queries from employees and governing bodies members about ethics and internal regulation. | | | | | | | | | | | --- | --- | | | | | | For more details on Canal Abierto, see section ['](#i6ecb2a0d58d04b53bfadfa2a833efaa7_208) [4.3 Ethical channels](#i6ecb2a0d58d04b53bfadfa2a833efaa7_208) ['](#i6ecb2a0d58d04b53bfadfa2a833efaa7_208) in the 'Sustainability statement' chapter. | B. Privacy At Santander, we have a specialist office that enforces our corporate policy on personal data protection and sets out guidelines for all our subsidiaries. We have a comprehensive framework designed to effectively manage the oversight of personal data privacy within the Group. C. Market regulation The Markets Conduct team within corporate compliance oversees the application of the Code of Conduct in Securities Markets (CCSM), particularly personal account dealing activity by Grupo Santander employees and directors. It is also responsible for the control environment applicable to transactions in treasury shares and Santander's share buy-back programmes, and for monitoring the use of and contribution to benchmarks. In addition to applying the CCSM, the risk of market abuse is primarily managed with support from CIB Compliance, as outlined below: • The surveillance function is responsible for: (i) monitoring the bank's activity in financial markets; (ii) deterring and detecting market abuse and other types of misconduct; and (iii) establishing monitoring systems for both the bank's orders and transactions in financial markets and for the communications of employees carrying out this activity. • The global control room function is responsible for preventing unlawful disclosures of inside information and transactional conflicts of interest. • The CIB Compliance function also oversees ongoing adherence to global regulatory frameworks and effective implementation of new requirements across jurisdictions. In 2025, focus areas include regulatory reporting, inducements, and algorithmic trading under MiFID II and EMIR 19, alongside continued oversight of Dodd-Frank and the Volcker Rule. The function maintains proactive monitoring of upcoming reforms to support consistent, well-governed compliance across the Group’s operations. D. Relevant Information The Corporate Compliance’s Relevant Information team is responsible for: (i) leading the assessments to decide whether a particular piece of information should be classified as inside or other relevant information; (ii) disclosing relevant information, as well as inside information on the Group, to the markets via both our website and the CNMV's website; and (iii) reporting on transactions with treasury shares or significant holdings of Banco Santander, and on transactions and Santander share-based remuneration schemes of executive directors and senior managers to the CNMV and to other regulatory bodies in markets where Santander is a publicly traded company. 20 Foreign Account Tax Compliance Act 21 Common Reporting Standards Annual report 2025590 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | E. Automatic exchange of tax information between #### countries The data management function oversees automatic tax disclosure between subsidiaries (pursuant to FATCA 20 and CRS 21) by checking regular reporting obligations and execution of local action plans. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Key corporate compliance lines of action in 2025 | | | | | | | | | | | | Policies, procedures and guidelines | | | Enhancement of controls and reporting | | | | | | | | | | → Revamped CCSM to align its content with best practices and supervisory expectations, including those of US authorities. | | | → Implemented a common whistleblowing channel solution in eight of Group’s main subsidiaries, managed by an external provider, to support consistent management of the whistleblowing channels across the Group. → Enhanced risk reporting by providing the board with a global view of breaches of the Code, including Canal Abierto cases and those received by other means (mainly by People & Culture). → Revised the Canal Abierto policy and procedure to harmonise the criteria for managing the Group’s whistleblowing channels. | | | | | | | Subsidiaries Oversight and Awareness | | | | | | → Progress on defining the Binding Corporate Rules control framework to facilitate international data transfers from the EU to third countries. | | | | | | | | | #### Conduct and reputational risk The conduct and reputational risk function promotes appropriate levels of consumer protection by fostering a customer-centric culture throughout the entire customer lifecycle (product design, marketing, and post-sales) and across all interactions with the Group. In addition, the function helps maintain a low reputational risk profile through the definition of criteria and controls to minimize risk, enabling the analysis, mitigation and proactive management of relationships with stakeholders. A. Conduct risk Conduct risk related to customers may arise in various processes, such as product design, marketing, sales and customer interactions and service during the post-sales phase. The Group maintains a robust and well-established conduct risk management framework for its identification, assessment, monitoring and escalation. The model aims to proactively detect behaviours or practices that could lead to regulatory breaches, customer detriment, or reputational damage. It also establishes processes that enable a comprehensive understanding of risk exposure and vulnerabilities across the Group. Annual report 2025591 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Key elements of the conduct risk management model | | | | | | | | | | | | | | | | | | | Internal regulation and governance | | | Oversight of key processes | | | Risk management | | | Clipboard.jpg | | | UtilitiesGears.jpg | | | Alert.jpg | | | → Define principles and processes through a strong regulatory-based conduct risk management model. → Oversee local product-approval activity and chair the Product Governance Corporate Forum to mitigate conduct risk in the approval of products and services. | | | → Priority focus that our products and services meet customer needs. → Sales targeted at appropriate markets in a transparent manner, supported by appropriate training and customer- focused incentives. → Aim for high-quality customer service and post-sale support, promoting fair treatment. | | | → Monitor marketing performance. → Identify and assess risks using customer voice, risk management tools, and supervisory and sectorial information. → Escalate issues and oversee action plans. | | | | | | | | | | | | | | | --- | --- | --- | | | | | | Key conduct risk lines of action in 2025 | | | | | | | | Implementation of responsible practices with end users | | | | | | | | ConductaCorrecta.jpg | | → Conduct thematic analyses on relevant sector risks to assess potential exposure and controls within the Group. Monitor locally defined action plans arising from other thematic reviews. → Development of ESG and Corporate Sustainability Reporting Directive -aligned metrics on transparency and accessibility. → Enhancement of the formal complaints/other dissatisfactions management processes, following a risk-based approach to improve accessibility and efficiency in dissatisfaction management, with shorter response times, better data capture, strengthened follow-up, while maintaining fair and appropriate treatment and attention to the customer voice. | | | | | | Contribution to the simplification strategy | | | | | | | | | | → Simplification of key identification and monitoring processes (risk control self-assessment – RCSA – and key risk indicators), to support a more efficient, risk-based approach. → Continuous enhancement of the product-approval process, adopting a risk-based approach that increases local autonomy within the Group’s governance and oversight framework. → Contribution to the simplification of the Group’s product catalogue to strengthen customer protection, transparency and fair outcomes. | | | | | | Promoting best practices in digital strategy | | | | | | | | ComputerMobile.jpg | | → Establishment of a compliance centre of excellence for digital assets, artificial intelligence (IA), Banking as a Service (BaaS) and payments, strengthening oversight and governance in fast-evolving technologies (e.g., crypto assets, AI). This initiative aligns with our broader strategy to embed compliance and ethical considerations at the core of innovation. The centre provides specialised expertise to support adherence to applicable laws, ethical standards and internal policies in our blockchain, digital asset and AI activities. | | | | | | | | | --- | --- | | | | | | For more details on conduct with customers, see section ['3.3 Our](#i6ecb2a0d58d04b53bfadfa2a833efaa7_187) [customers](#i6ecb2a0d58d04b53bfadfa2a833efaa7_187)['](#i6ecb2a0d58d04b53bfadfa2a833efaa7_187) in the 'Sustainability' chapter. | Annual report 2025592 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | B. Reputational risk Reputational risk primarily derives from stakeholders' perception of the bank in the markets where we operate. It can arise from multiple sources: business or business support activities, as a consequence of other risks; the economic, social and political environment, or from events related to our competitors. Our reputation may also be affected by negative media coverage, whether merited or not. Reputational risk applies to all Group activities and is identified, managed and mitigated by business and support functions, particularly those that engage with stakeholders. The second line of defence, within compliance, sets policies, oversees the risks, challenges the first line, and reports and escalates to the relevant governing bodies (Group compliance committee, board risk committee and the board). Our reputational risk model takes a preventive management and control approach, with effective handling of early-warnings and procedures to identify, manage and monitor risk events. It also includes elements to identify, analyse and monitor key stakeholders’ perception of Grupo Santander and the financial sector, and how those perceptions may evolve. The model is consistent with the Group’s overall risk management and control processes (risk profile, risk appetite, economic capital, and emerging risks, among others). | | | | | --- | --- | --- | | | | | | Key reputational risk lines of action in 2025 | | | | | | | | Policies, procedures and guidelines | | | | | | | | | | → Santander fully supports nations’ right to defend their freedom and territories. At a time when many nations, especially in Europe, need to strengthen their defence and build resilience in response to growing political tension, Santander has updated our Defence Policy. The revised policy reaffirms Santander’s commitment to provide financial solutions and support for companies which are involved in defence and related sectors. We believe this is a responsible approach, and one that will help create jobs, boost innovation and support economic growth. → Update of the Sensitive-activities policy, including detailed criteria to assess the Group’s participation in certain activities that may generate reputational risk exposure, strengthening the control environment. → Review of the reputational risk event management guidelines to improve assessment accuracy. | | | | | | Risk management, methodologies and control | | | | | | | | StockSchange.jpg | | → Review and update of risk appetite metrics. → Implementation of a comprehensive assessment of reputational risks for all Group units. | | | | | | Subsidiaries oversight and reporting | | | | | | | | People3.jpg | | → Enhancement of oversight, governance and challenge processes of units. → Continuation of the global forum for Group-countries discussion on new processes and reputational risk management. | | | | | --- | --- | | | | | | For more details on Grupo Santander stakeholders, see section '[1.3 Stakeholders engagement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_64)' in the 'Sustainability statement' chapter. | #### Financial Crime Compliance #### (FCC) Financial crime risk can arise from criminal acts or from the use of the Group's products, services, or operations for illegal activities. It refers to the potential misuse of these to facilitate unlawful conduct, including money laundering, terrorist financing, associated predicate offences, or breaches of international sanctions regimes. Business functions form the first line of defence, and are primarily responsible for identifying, managing, mitigating and reporting financial crime risk, in line with the Group's risk culture. The accountable executive for FCC oversees the effective implementation and execution by each business of the FCC framework and programme. The FCC function, as part of the second line of defence, oversees financial crime risks across the Group and maintains the policies and procedures necessary to manage the business activities within the established risk appetite. It is responsible for designing and monitoring the FCC programme, setting minimum compliance standards, and advising and challenging the first line, maintaining alignment with Group-wide policies and regulatory expectations. The FCC function also coordinates closely with other control functions and engages regularly with relevant authorities. In 2025 the FCC Function continued to strengthen the Group’s capacity to prevent, detect, and respond to financial crime risks through a robust and risk-based programme. The focus remained on consolidating a resilient control environment, enhancing oversight and analytics capabilities, and promoting a proactive and integrated approach to risk management across all businesses and jurisdictions. Particular attention was given to the evolving regulatory landscape, including active engagement in the development of future EU anti-money laundering (AML) regulatory standards. The Group also advanced the automation and digitalization of key FCC processes to promote greater efficiency, consistency, and responsiveness in oversight activities. Annual report 2025593 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | In parallel, the FCC function reinforced collaboration with domestic and international authorities and law enforcement agencies to enhance information sharing and the ability to detect and disrupt financial crime. Continued efforts were made to anticipate and address emerging risks, so that controls and customer due diligence processes remain robust, risk-based, and aligned with regulatory expectations. These initiatives underscore Santander’s ongoing commitment to fostering a strong financial crime compliance culture and to supporting the integrity and transparency of the financial system in which it operates. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Key FCC lines of action in 2025 | | | | | | | | | | | | Frameworks & policies | | | One FCC strategic program | | | | → Further development of the internal regulatory framework, to maintain alignment with emerging financial crime threats and typologies (e.g., fraud) and to provide the Group with an adaptable infrastructure and control framework to appropriately manage risks arising from innovation (e.g., crypto assets). | | UtilitiesGears.jpg | → The Group continued to enhance its financial crime control framework through the One FCC strategic programme, which integrates FCC tools and processes, aligned with the internal regulatory framework across all FCC pillars. The programme also piloted the supervised use of artificial intelligence to complement existing control processes, exploring more efficient and effective ways to strengthen operational execution and risk- management capabilities. | | | | | | | | Financial Intelligence units | | | Financial crime oversight | | | Alert.jpg | → The FCC function plays a key role in strengthening the Group’s financial crime prevention capabilities through the ongoing execution of the annual financial crime threat assessment, the issuance of Financial Intelligence Unit (FIU) alerts, and the continuous monitoring of geopolitical developments. → In line with international priorities to combat the financing networks linked to Foreign Terrorist Organisations (FTOs) and to the trafficking of synthetic drugs such as fentanyl, a dedicated task force was established to enhance risk identification and response capabilities in this area. This initiative, supported by close collaboration across relevant geographies and enhanced information-sharing within the FIU network, helps reinforce the Group’s ability to anticipate and mitigate emerging financial crime risks of global concern. | | EyeVisibility.jpg | → To further strengthen oversight effectiveness, the Group and local FCC oversight teams continued to evolve their methodologies towards a more risk- based and outcome-oriented approach. Independent assessments were conducted to evaluate adherence to the Group’s FCC risk management framework and policies, supporting operation within the board- approved risk appetite across all obliged entities. → These efforts were supported by the development and deployment of dedicated oversight tools designed to enhance consistency, efficiency, and depth across all FCC pillars. | | | | | | | | Trainings and awareness | | | Regulatory and Supervisory Developments | | | PublicBuilding.jpg | → Targeted training sessions were delivered to raise awareness and promote a consistent understanding of regulatory developments across all Santander obliged entities, reinforcing the Group’s commitment to a sound and cohesive financial crime compliance culture. → Furthermore, the FCC function enhanced awareness and responsiveness across the Group through the regular dissemination of alerts, regulatory and sanctions updates, and timely communications on significant developments, thereby supporting a proactive, informed, and cohesive financial crime compliance culture. | | HandBulb.jpg | → Close monitoring of the evolving Anti-Money Laundering Authority (AMLA) framework, to support internal alignment with anticipated regulatory requirements and to contribute to the development of robust and actionable Regulatory Technical Standards (RTS) through ongoing industry collaboration. | | | | | | | | | | | --- | --- | | | | | | For more details on FCC, see section [4.2.3 'Financial Crime Compliance](#ifdb1f1325f604b48ba5735b8bba7b936_13172) [(FCC)](#ifdb1f1325f604b48ba5735b8bba7b936_13172) ['](#ifdb1f1325f604b48ba5735b8bba7b936_13172) in the 'Sustainability statement ' chapter. | Annual report 2025594 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 7. Model risk #### 7.1 Introduction A model is a system, approach or quantitative method that applies statistical, economic, financial or mathematical theories, techniques and assumptions to transform data into quantitative estimates. We use models mainly in credit origination (scoring/rating) and credit behaviour, for capital and provisioning calculations, to measure market, structural, liquidity, operational and compliance risk, and for accounting and financial control, among other purposes. The use of models gives rise to model risk, which is the potentially adverse consequences of decisions based on poorly developed, inadequately implemented or incorrectly used models. Model risk may lead to financial losses, inappropriate business or strategic decisions, or harm to Grupo Santander’s operations. #### 7.2 Model risk management At Grupo Santander we have been measuring, managing and controlling model risk for many years. The Model Risk area, which covers both the parent company and the main subsidiaries, focuses on the control, management and oversight of this risk. To manage model risk properly, we have clear internal regulations that set out the principles, responsibilities and processes to organize, approve, manage and govern models throughout their life cycle. We classify models according to their relevance, taking into account both a global and a local perspective of materiality and recognizing the diversity of circumstances and regulatory requirements across geographies and business lines. The intensity of model risk management and oversight depends on this classification and on other factors such as technical complexity or the level of risk each model represents for Grupo Santander. Given their particular importance to the Group, regulatory models follow the most intensive monitoring and management standards. Grupo Santander follows these stages of the model life cycle: ![FasesCicloVidaModeloENG (1).jpg]() 1. Identification We include all identified models within the scope of model risk control and, therefore, in the Group’s centralized inventory, a single platform based on a uniform taxonomy for all models used in the business units. This inventory is a key element for effective management of this risk as it contains detailed information on each model and enables close monitoring in line with its significance. 2. Planning This is an internal annual exercise that the subsidiaries’ governance bodies approve and that we review on an aggregated basis. It sets out a strategic action plan and identifies the needs related to the models within the scope of the function to be developed, validated and implemented during the year. Subsidiaries’ management bodies, including the local executive risk committee (ERC) or an equivalent body, approve the model plan for their remit. At corporate level, the subsidiaries’ plans, together with the global model plan, are submitted to the model approval forum for review and to the ERC for approval. Annual report 2025595 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 3. Development In this phase, the model’s unit helps strengthen risk management by developing models and using data in line with current regulatory requirements. This unit leads model development for all types of risk, with a particular focus on meeting regulatory expectations (internal ratings-based approach – IRB –, IFRS 9 and internal model approach – IMA –, among others). It operates with specialist local and global teams. Experts in each geography develop local models, drawing on their knowledge of each unit’s specific features and needs, while global experts define modelling standards, develop cross-cutting models and support geographies in applying these standards and/or in model development itself, where appropriate. We also apply a boxification methodology that facilitates task encapsulation and automation in model development, fostering process standardization, and maintains quality. In 2025 we delivered the first updates, following the IRB Repair Program, of the main IRB models in Europe, aligning them with supervisory expectations. We also continued to implement the IRB strategy, which aims to reinforce consistency in IRB application across portfolio types in all Group subsidiaries. In addition, we carried out regular updates of the model families commonly used in management. At Santander we drive innovation, including the responsible use of machine learning and generative artificial intelligence. Our priority in modelling is to deepen the use of these new techniques by promoting initiatives that enhance and simplify processes. 4. Validation Independent model validation is a regulatory requirement and a key pillar of model risk management and control. A specialist team that operates fully independently from developers or users issues technical opinions on the suitability of internal models. These validation opinions result in a rating that summarizes the model risk associated with each model. We clearly define the intensity and frequency of validation activities and follow a risk-based approach. We have set up a supervisory framework within the internal validation function to strengthen control and safeguard the traceability, integrity, consistency and homogeneity of validation results. Under this framework, we apply ex ante and ex post checks before formally publishing the outcome, depending on the relevance and complexity of the model, and promote standardized practices at Group level in line with internal policies and standards. 5. Approval Before implementation and use, each model must be presented to the internal governance bodies for approval. To this end, we have defined governance for our model inventory based on model significance. Models will be approved by the ERC, model approval forum, local model governance bodies or by model owners, depending on such factors as: model type or use (regulatory or non-regulatory), whether the model is local or global, the type of model change, model classification, and/or the powers delegated to each subsidiary. 6. Implementation and use We integrate newly developed models into IT systems, which can also pose model risk. Technical teams and model owners run tests to confirm that implementation matches the methodological design and delivers the expected results. 7. Monitoring and control Model control and monitoring aims to review whether models operate properly and remain fit for purpose. Otherwise, we adapt or redesign them. Control teams also work to keep model risk management aligned with the principles and rules set out in the overarching model risk framework and related internal policies. This recurring process seeks to keep the entity’s model risk at appropriate levels and, more specifically, within the defined risk appetite limits. #### Main activities in 2025 To strengthen model risk culture across the Group and position Santander as a leading bank in this area, we focused our 2025 strategy on: • technological transformation and process redesign towards a more efficient, integrated and global operating model that enhances agility and consistency in validation by incorporating new technologies and tools; • ongoing enhancement of regulatory IRB models to align them with supervisory expectations, implementation of the Group’s IRB strategy and adaptation to the new FRTB regulatory framework. We created a global regulatory office to coordinate regulatory initiatives and promote consistent and coherent management in all of the Group’s markets; and • expansion of the model risk scope to cover artificial intelligence systems by adapting and evolving on internal processes to support sound and responsible management of these models. We promote compliance with regulatory requirements, particularly the EU AI Act, and with industry good practice. Annual report 2025596 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | 8. Strategic risk #### 8.1 Introduction Strategic risk is the risk of losses or damage arising from strategic decisions or their poor implementation, that affect the medium and long term interests of our key stakeholders, or from an inability to adapt to changes in the environment. Grupo Santander’s business model is a key element of our strategic risk. It must be viable, sustainable and capable of generating results in line with our annual objectives and in a manner that is consistent with the Group’s long-term vision. Strategic risk has three key components: | | | | | --- | --- | --- | | | | | | 1 | | Business model risk: This includes, among other things, the risk that the business model becomes obsolete, loses relevance or stops generating the expected results. | | | | | | 2 | | Risks associated with the institution's strategic plans, including both the long-term strategic plan and the three- year financial plan, encompassing the risk that the plan may be inherently inadequate or based on assumptions which could result in the non-achievement of the expected outcomes. | | | | | | 3 | | Strategy execution risk: Linked to the implementation of the three-year strategic plan, this covers potential deviations due to internal or external factors, the lack of capacity to respond to changes in the business environment, and the risks associated with corporate development transactions and the marketing of new products and services. | #### 8.2 Strategic risk management The pillars of our business model and, therefore, our strategy, are customer focus, our global scale combined with local leadership, and diversification by business and geography. Our five global businesses play a key role in increasing value creation, profitability and sustainable shareholder returns, while we keep a strong and diversified balance sheet through prudent risk management. At Grupo Santander we treat strategic risk as a transversal risk. To manage it, we use an operating model that brings together the governance, procedures and tools needed to monitor and control this risk, in line with our risk appetite statement. This model also serves as a reference for our subsidiaries. We continuously monitor changes in the environment (competition, regulation, market conditions, and others) and within the organization itself by analysing potential risks and their mitigating factors. The strategic risk function engages with key areas in the first and second lines of defence with the aim of having these mitigating measures ready to deploy when required. Our strategic risk operating model rests on these processes: • Challenging strategic plans: The strategic risk function, supported by specialist teams within the Risk division, challenges the long-term strategic plan and the three-year financial plan by identifying potential threats that could jeopardize the achievement of our objectives. During 2025, we strengthened the challenge of the three-year financial plan both in our global businesses and the Group’s subsidiaries. We did so under the new planning structure, which has two phases: a first top-down phase, in which the global businesses set their key priorities and ambition level for the projected metrics; and a second bottom-up phase, in which the subsidiaries join the process so that their targets align with the ambition level defined in the first phase. • Emerging risks: We identify, assess, monitor and proactively manage potential risks that, under stressed scenarios, could have a material impact on the Group’s profitability, liquidity or solvency. Throughout 2025, we moved towards a more pragmatic approach, with a particular focus on geopolitical risks, which we fully embedded in our day-to-day management. In the following section, we describe the main emerging risks identified in 2025. • Analysis of business model development: We assess and identify the main threats to the Group and its subsidiaries’ business plan and strategic objectives. This analysis covers three dimensions: • Strategy execution: Assessment of the risk of deviation from established plans and objectives, together with the execution status of strategic projects. • Viability and sustainability: Assessment of our relative position versus competitors and the risk of not creating value for shareholders. • Predictability of the business plan: Risk that results may not remain predictable and stable over time. In 2025, we continued to focus our monitoring on value creation. As a result, we added further risk-adjusted profitability metrics under the shareholder value added (SVA) approach. Annual report 2025597 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | • Corporate development transactions: We help make sure that transactions of this nature include an assessment of their impact on the Group’s risk profile and risk appetite. The following transactions were particularly significant in 2025: (i) the acquisition of TSB Banking Group plc, which will strengthen Santander’s presence in the UK retail banking market; (ii) the sale of 49% of Santander Bank Polska, which will generate significant capital gains and further strengthen the Group’s CET1 capital ratio, along with the acquisition of 100% of Santander Consumer Bank Polska; and (iii) the merger of Openbank and Santander Consumer Finance, with the objective that all European consumer finance businesses progressively operate under the Openbank brand. • Assessment and validation of new products and services: We support pre-launch reviews of proposals for new products and services to align them with the Group’s strategy, with a particular focus on their risk-return profile. In 2025, we continued to drive digital and consumer finance initiatives, such as Zinia. • Monitoring strategic projects: We take part in preparing and updating the annual inventory of strategic projects (defined by the strategy committee), assessing removals and new entries based on their progress, impact and importance. We also carry out a twice-yearly review of their performance, providing an independent view that supports their alignment with the Group’s strategic priorities and risk appetite. In 2025, we prioritized cross-Group initiatives aimed at boosting efficiency and global coordination, including the development of the operating model for corporate functions and progress in the transformation towards a new way of working based on an agile organizational approach, in order to accelerate execution and the achievement of key objectives. Additionally, the strategic risk function provides a consolidated view of our exposure to this risk, provides an independent opinion and challenges first-line activities. To do so, it regularly submits the Strategic Risk Report to senior management, which covers the monitoring of our strategy execution, emerging risks, business model performance, the analysis of corporate development transactions, the launch of new products, and the monitoring of strategic projects. #### 8.3 Emerging risks in 2025 Through our emerging risk exercise, we identify, assess and monitor risks that, under low-probability stress scenarios, could have a significant impact on Grupo Santander’s business model, profitability or solvency. Proactive management of these risks is key to avoid or mitigate their negative effects and deviations from the targets set, through the implementation of previously defined action plans. The first and second lines of defence, both in our subsidiaries and at the corporate centre, take part in this process. The risks we identify also feed into the idiosyncratic scenarios used in exercises such as the ICAAP and in the Group’s viability, recovery and resolution plans. During 2025, against a global backdrop marked by geopolitical uncertainty, trade tensions among major powers and the conflicts in Ukraine and the Middle East, the Group stepped up its focus on managing these risks. As part of this effort, we strengthened monitoring through the use of geopolitical risk heat maps to assess the potential impact of these risks on our portfolios. This exercise covers all our subsidiaries and businesses and incorporates existing exposures by portfolio and by economic sector. Throughout the year, we updated this monitoring with analysis of internal and external early warning indicators to assess developments. This analysis supports decisions, where applicable, on activating the relevant playbooks based on the different indicators and adopting specific measures for certain sectors, portfolios or individual clients. In addition to macroeconomic and geopolitical risks, other emerging risks that stood out in 2025 were: those related to new technologies, AI and cryptoassets; those linked to critical service providers; and the risk of disintermediation associated with central bank digital currencies (CBDCs), particularly the digital euro. Below we describe the main emerging risks identified in 2025: Geopolitical risks Escalation of tariffs and uncertainty in global trade A resurgence of global trade tensions, with the US stepping up protectionist measures and reigniting tariff disputes, could lead to reciprocal measures such as export controls. This would create risks for global supply chains, add inflationary pressures, and weigh on economic confidence. As a result, uncertainty in international trade would increase, affecting growth forecasts, investment flows and market stability, and leading to lower output mainly in the US, but also with global spillovers for its trading partners. Military conflicts: Ukraine and the Middle East In Europe, the potential rise in hybrid warfare actions by Russia — including cyber-attacks, sabotage and disinformation campaigns — would steadily increase geopolitical risk, and could undermine the resilience of critical infrastructure and fuel higher volatility and economic uncertainty in the region. In the Middle East, the possible resumption and potential escalation of conflict create an additional source of global vulnerability that could disrupt commodity markets, energy supply chains and key trade routes. These tensions could translate into further inflationary pressures, a deterioration in financial conditions, and weaker global growth prospects. Macroeconomic risks Persistently low economic growth The slowdown in global growth is a key risk for financial stability, especially in Europe. Persistently weak growth, together with low credit demand, margin compression and a decline in investment, could significantly amplify systemic vulnerabilities and become a material threat to global financial stability. The combination of insufficient economic growth and a much more complex European regulatory framework than in the US is weighing on the competitiveness of European companies and creating challenges for innovation. Against this backdrop, progress towards smart regulation is essential to support efficient capital Annual report 2025598 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | allocation and promote productive investment, particularly in strategic areas such as technological innovation, digitalization, and the energy transition. Potential correction in financial markets, private credit and excessive sovereign debt Overvaluation of certain assets, the rapid growth of private credit and high sovereign debt levels increase the risk of an abrupt correction in global financial markets. A sudden change in investor risk appetite — for example, triggered by disruptions in areas such as AI, private credit or US regional banks — could lead to sharp falls in asset prices. Tensions would intensify if highly leveraged or less liquid financial intermediaries were forced into fire sales, which would significantly tighten global financial conditions. To manage macroeconomic and geopolitical risks, Grupo Santander applies risk policies and processes designed to keep our risk profile within the limits defined in our risk appetite statement. Together with our geographic and business diversification, this makes us more resilient. In addition, our models incorporate the effect arising from macroeconomic and geopolitical risks, strengthening our forward-looking analysis and our ability to anticipate potential impacts. To mitigate these risks, we carried out the following actions throughout 2025: • Ongoing monitoring of the macroeconomic and socio-political environment, focusing on key indicators that can trigger the escalation of events and specific risks to the special situations committees. • Stronger monitoring of early-warning indicators and risk- management playbooks to enable a rapid response to changes in macroeconomic conditions and reinforce operational capacity. • Adjustment of limits and exposures to reflect our risk appetite, along with updates to our internal sovereign risk ratings. • Proactive portfolio reviews to reduce exposure to cyclically vulnerable sectors, where needed. • Strengthening of our scenario analysis capabilities by increasing their granularity. Other emerging risks Risks related to new technologies, AI and cryptoassets In addition, the Group monitors and manages those risks arising from the emergence or large-scale adoption of new technologies, such as artificial intelligence and those related to digital assets. On the one hand, these initiatives create significant opportunities in terms of innovation, efficiency gains, new products and services, among others. On the other hand, they may create new risks or have a cross- cutting impact on existing ones. Moreover, their novel nature means they are generally subject to incomplete, evolving and fragmented regulation across the different jurisdictions in which the Group operates. Santander is progressing in adopting the benefits of these technologies under a strong risk control framework that includes, among other elements: the use of corporate risk management tools (risk appetite, emerging risk oversight, governance and policies, etc.); upskilling/reskilling of employees so they develop the capabilities needed to address digital challenges; monitoring regulation through specialist teams and participation in industry groups. Potential disruption of critical information and communication technologies service providers Digitalization continues to increase financial institutions’ dependence on information and communication technologies. This brings growing exposure to potential disruptions, operational failures or prolonged outages that could affect service delivery and business continuity. At the same time, sector concentration in mainly US-based global providers — such as cloud service providers (CSPs) — is developing in a context which the EU is promoting various initiatives linked to technological autonomy and sovereignty. Grupo Santander applies several mitigating measures, among others: extensive due diligence subject to strict governance before onboarding these providers, including certification, ongoing monitoring and regular reviews, as well as exit strategies and business continuity plans in case of potential failures or disruptions, which we test regularly. Central bank digital currencies and disintermediation risk for banks Digital versions of fiat currencies issued by central banks (CBDCs), such as the European Central Bank’s (ECB) digital euro project, could have impacts on banking intermediation and payment activity, and influence lending capacity with potential macroeconomic implications. If citizens held digital euros directly with the central bank, this could affect deposit dynamics and certain patterns in the use of financial services. Grupo Santander closely follows the development of the digital euro to assess its potential implications and opportunities and takes part in technical discussions and industry forums to anticipate the most important aspects of its design. Analysis focuses particularly on the digital euro, since the development of a retail CBDC has stalled in other jurisdictions (for example, the United States) due to recent regulatory decisions, which places the European project as the main reference in this area. Annual report 2025599 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | #### Glossary of terms, acronyms #### and abbreviations | | | | --- | --- | | | | | 2023 AGM | Annual general shareholders’ meeting of Banco Santander held on 31 March 2023 at second call | | 2023 Investor Day | Investor Day held by Banco Santander in London on 28 February 2023 | | 2024 AGM | Annual general shareholders’ meeting of Banco Santander held on 22 March 2024 at second call | | 2025 AGM | Annual general shareholders’ meeting of Banco Santander held on 4 April 2025 at second call | | 2026 AGM | Annual general shareholders’ meeting of Banco Santander called for 26 or 27 March 2026 at first or second call, respectively | | 2026 Investor Day | Investor Day held by Banco Santander in London on 25 February 2026 | | A2A | Account to account | | ABC | Anti-bribery and corruption | | Act 10/2014 | Spanish Law 10/2014 of 26 June 2014 on the Regulation, Supervision and Solvency of Credit Institutions | | Active customer | Those customers who comply with the minimum balance, income and/or transactionality requirements as defined according to the business area | | ADR | American depositary receipts | | ADS | American depositary shares | | AEOI | Automatic Exchange of Information standard | | AGM | Annual general shareholders' meeting | | AI | Artificial intelligence | | ALCO | Assets and liabilities committee | | ALM | Asset and liability management | | AML | Anti-money laundering | | API | Application programming interface | | APM | Alternative performance measure | | AT1 | Additional Tier 1 | | AUD | Australian dollar | | AuM | Assets under management | | B2B | Business-to-business | | Banesto | Banco Español de Crédito, S.A. | | BIS | Bank for International Settlements | | bn | Billion | | bps | Basis points | | BRL | Brazilian real | | BRRD | Bank Recovery and Resolution Directive. Directive 2014/59/EEU establishing a framework for recovery and resolution | | BURG | Banking Union Resolution Group | | Bylaws | Bylaws of Banco Santander | | CAD | Canadian dollar | | CAE | Chief Audit Executive | | CAGR | Compound annual growth rate | | Canal Abierto | Anonymous and confidential Grupo Santander channel to report unethical conduct | | CAO | Chief Accounting Officer | | CapEx | Capital expenditure | | CARF | Conselho Administrativo de Recursos Fiscais (administrative council of tax appeals) | | CBDC | Central bank digital currency | Annual report 2025600 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | --- | --- | | | | | CCO | Chief Compliance Officer | | CCP | Central Counterparties | | CCPS | Contingent convertible preferred securities | | CCR | Risk control committee | | CCSM | Grupo Santander's Code of Conduct in Securities Markets | | CDAIO | Group Chief Data & AI Officer | | CDI | CREST depository interest | | CDO | Collateralised debt obligation | | CDS | Credit default swap | | CEO | Chief Executive Officer | | CET1 | Common equity Tier1 | | CF | Corporate Finance | | CFO | Chief Financial Officer | | CFT | Combating the financing of terrorism | | CGU | Cash-generating units | | CHF | Swiss franc | | CIB | Corporate & Investment Banking (primary business segment) | | CJEU | Court of Justice of the European Union | | CLP | Chilean peso | | CMDI | Crisis Management and Deposit Insurance Framework | | CMG | Crisis Management Group | | CNBV | Comisión Nacional Bancaria y de Valores (Mexican stock market authority) | | CNMV | Comisión Nacional del Mercado de Valores (Spanish stock market authority) | | CNY | Chinese yuan | | CO2e | Carbon dioxide equivalent | | CoE | Cost of equity | | COFINS | Contribuição para financiamento da Seguridade Social (Contribution for the financing of Social Security) | | Constant euros | Excluding exchange rates impact | | Consumer | Digital Consumer Bank (primary business segment) | | COP | Colombian peso | | Corporate Identified Staff | Executives whose activities may have a significant impact on the Group's risk profile | | Costs in real terms | Costs excluding the effect of average inflation over the last twelve months | | CPI | Consumer Price Index | | CRD | Capital Requirements Directive. Directive 2013/36/EU on access to credit institutions | | CRE | Commercial real estate | | CRO | Chief Risk Officer | | CRR | Capital Requirements Regulation. Regulation (EU) 575/2013 on prudential requirements | | CRR 2 | Capital Requirements Regulation II. Regulation (EU) 2019/876 amending CRR | | CRR 3 | Capital Requirements Regulation III. Regulation (EU) 2024/1623 amending CRR | | CSLL | Contribuçao social sobre o lucro liquido (Social Contribution on Net Profit) | | CSM | Contractual service margin | | CSRBB | Credit spread risk in the banking book | | CSRD | Corporate Sustainability Reporting Directive. Directive (EU) 2022/2464 on sustainability reporting | | CVA | Credit valuation adjustment | | CZK | Czech koruna | | D-SIB | Domestic Systemically Important Bank | | DCB US | Digital Consumer Bank US | | DCBE | Digital Consumer Bank Europe | Annual report 2025601 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | --- | --- | | | | | DCM | Debt Capital Markets | | DGS | Deposit guarantee schemes | | Digital customer | Every consumer of commercial banking services who has logged on to their personal online banking and/or mobile banking in the last 30 days | | DORA | Digital Operational Resilience Act. Regulation (EU) 2022/2554 on digital operational resilience | | DTA | Deferred tax asset | | DVA | Debit Valuation Adjustment | | E&S | Environmental and social | | EAD | Exposure at default | | EBA | European Banking Authority | | EBA Guidelines (2025/01) | EBA Guidelines (2025/01), on 8 January 2025, on the management of environmental, social and governance (ESG) risks | | EBITDA | Earnings before interest, taxes, depreciation and amortization | | EC | European Commission | | ECAs | Export Credit Agencies, government-backed financial institutions that support domestic companies' international trade | | ECB | European Central Bank | | ECM | Equity capital markets | | EFRAG | European Financial Reporting Advisory Group | | EGC | General Court of the European Union | | EIA | Environmental impact assessment | | EIB | European Investment Bank | | EIF | European Investment Fund | | eNPS | Employee Net Promoter Score is a method of measuring employee satisfaction | | EOIR | Exchange Of Information on Request standard | | EP | Equator Principles | | EPC | Energy performance certificates | | EPG | Equal pay gap. It measures differences in remuneration between women and men in the same job at the same level | | EPS | Earnings per share | | EQ | Equity | | ERC | Executive risk committee | | ES | Expected shortfall | | ESCC | Environmental, social and climate change related | | ESG | Environmental, social and governance | | ESRS | European Sustainability Reporting Standards | | EU | European Union | | EUR | Euro | | EV | Electric vehicles | | EVA | Economic value added | | EVE | Economic value of equity | | FACL | Financial Assurance Company Ltd | | FCA | Financial Conduct Authority | | FCC | Financial crime compliance | | Fed | Federal Reserve | | FFVA | Funding fair value adjustment | | FICL | Financial Insurance Company Ltd | | FICO | Fair Isaac Corporation | Annual report 2025602 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | --- | --- | | | | | Financial inclusion | Number of people who are unbanked, underbanked, in financial difficulty, with difficulties in accessing credit who, through the Group's products and services, are able to access the financial system or receive tailored finance. Financially underserved groups are defined as people who do not have a current account, or who have an account but obtained alternative (non-bank) financial services in the last 12 months. Beneficiaries of various programmes are included in the quantification process only once in the entire period. Only new empowered people are counted, taking as a base year those existing since 2019 | | First 2025 Buyback Programme | First share buyback programme charged against 2025 results | | Free float | Total number of shares in circulation minus treasury shares as a percentage of the total number of shares in circulation | | FROB | Fondo de Reestructuración Ordenada Bancaria (Spanish banking resolution authority) | | FRTB | Fundamental review of the trading book | | FRTB-SA | Fundamental review of the trading book-standard approach | | FS-ISAC | Financial Services Information Sharing and Analysis Center | | FSB | Financial Stability Board | | FTD | First-to-default | | FX | Foreign exchange | | G-SIB | Global Systemically Important Bank | | GAR | Green asset ratio | | GB | Global Banking | | GBP | Sterling pound | | GCC | Grupo Santander General Code of Conduct | | GDF | Global Debt Financing | | GDP | Gross Domestic Product | | GECB | GE Capital Bank Limited | | GHG | Greenhouse gases | | GM | Global Markets | | GPG | Gender pay gap. It measures differences in remuneration between women and men in an organization, business, industry or the broader economy, irrespective of the type of work | | GSGM | Group-Subsidiary Governance Model | | GSS+ | Green, social, sustainable and sustainability linked | | GTB | Global Transaction Banking | | GW | Gigawatt | | GWh | Gigawatt per hour | | HKD | Hong Kong dollar | | HPI | House Price Index | | HQLA | High-quality liquid assets | | HTC | Held to collect | | IAS | International accounting standards | | ICAAP | Internal capital adequacy assessment process | | ICAC | Instituto de Contabilidad y Auditoría de Cuentas (Institute of accounting and auditing) | | ICE | Internal combustion engines | | ICFR | Internal control over financial reporting | | ICMA | International Capital Markets Association | | ICO | Instituto de Crédito Oficial (Spanish Official Credit Institute) | | ICS | Internal control systems | | IEA | International Energy Agency | | IFC | International Finance Corporation | | IFRS | International Financial Reporting Standards | | IIF | Institute of International Finance | Annual report 2025603 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | --- | --- | | | | | ILAAP | Internal liquidity adequacy assessment process | | IMF | International Monetary Fund | | IOF | Imposto sobre operações financeiras (Brazilian financial transactions tax) | | IPO | Initial public offering | | IPR | Instant Payment Regulation. Regulation (EU) 2024/886 on instant credit transfers in euro | | IR | Interest rate | | IRB | Internal ratings-based | | IRC | Incremental risk charge | | IRO | Impacts, risks and opportunities | | IRPJ | Imposto sobre a renda das pessoas jurídicas (Brazilian corporate income tax) | | IRRBB | Interest rate risk in the banking book | | ISO | International Organization for Standardization | | IT | Information technology | | JPY | Japanese yen | | KPI | Key performance indicators | | LCR | Liquidity coverage ratio | | LDA | Loss distribution approach | | LGD | Loss given default | | LLP | Loan-loss provisions | | LRC | Liquidity for remaining coverage | | LTD | Loan to deposit ratio. Ratio of loans and advances to customers over customer deposits | | LTV | Loan to value ratio. Ratio of loans and advances to customers to the value of the asset used as collateral | | LUC | Land-use change | | M&A | Mergers and acquisitions | | M/LT | Medium-and long-term | | MAD | Moroccan dirham | | MDA | Maximum distributable amount | | MDR | Minimum disclosure requirement | | MiCA | Markets in Crypto-Assets. Regulation (EU) 2023/1114 on markets in crypto assets | | MiFID II | Markets in Financial Instruments Directive. Directive 2014/65/EU on markets in financial instruments | | mn | Million | | MPE | Multiple point of entry | | MREL | Minimum requirement for own funds and eligible liabilities | | Mt | Metric tone | | MWh | Megawatt per hour | | MXN | Mexican peso | | NACE | Nomenclature statistique des activités économiques dans la Communauté européenne (statistical classification of economic activities in the European Community) | | NbS | Nature-based solutions | | NFR | Non-financial risk | | NFRD | Non-Financial Reporting Directive. Directive (EU) 2013/34 on disclosure of non-financial and diversity information | | NGFS | Network for greening the financial system | | NGO | Non-governmental organization | | NGO | Non-governmental organization | | NII | Net interest income | | NOK | Norwegian krone | | NPL | Non-performing loans | Annual report 2025604 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | --- | --- | | | | | NPS | Net promoter score | | NSFR | Net stable funding ratio | | NTD | n-to-default | | NYSE | New York Stock Exchange | | NZD | New Zealand dollar | | ODS | Open Digital Services | | OECD | Organization for Economic Cooperation and Development | | OEM | Original equipment manufacturer | | ONP | Ordinary net profit | | OPEC | Organization of the Petroleum Exporting Countries | | Order ECO | Orden del Ministerio de Economía del Gobierno de España (Order of the Ministry of Economy of the Government of Spain) | | OTC | Over-the-counter | | P&L | Profit and loss statement | | PagoNxt | PagoNxt Ltd | | Payments | PagoNxt (Getnet, Ebury and PagoNxt Payments) and Cards (cards platform and card business in the countries where we operate). Payments is a primary business segment | | PB | Private banking | | PBT | Profit before taxes | | PCAF | Partnership for Carbon Accounting Financials | | PD | Probability of default | | PEN | Peruvian sol | | PHEV | Plug-in hybrid electric vehicles | | PIS | Programa de Integraçao Social (Social Integration Program) | | PLA | Polylactic acid | | PLN | Polish zloty | | POCI | Purchased or originated credit impaired | | PoS | Point of sale | | pp | Percentage point | | PPCA | Capital perpetual preference shares | | PPCC | Contingently convertible preference shares | | PPI | Payment protection insurance | | PVC | Polyvinyl Chloride | | PwC | PricewaterhouseCoopers Auditores, S.L. | | RA | Risk appetite | | RAF | Risk appetite framework | | RAS | Risk appetite statement | | RBSCC | Responsible banking, sustainability and culture committee | | RCP | Representative concentration pathway | | RCSA | Risk control self-assessment | | Repos | Repurchase agreements | | Retail | Retail & Commercial Banking (primary business segment) | | RIS | Retail investment strategy | | RNV | Registro Nacional de Valores (Mexican National Securities Registry) | | RoA | Return on assets | | RoE | Return on equity | | RON | Romanian leu | | RoRWA | Return on risk weighted assets | | RoTE | Return on tangible equity | | RoTE post-AT1 | Return on tangible equity excluding the cost of AT1 issuances from the numerator | Annual report 2025605 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | --- | --- | | | | | RPA | Risk profile assessment | | RPK | Revenue per passenger and kilometres | | RSRCC | Risk, supervision, regulation and compliance committee | | RSU | Restricted Stock Units | | Rules and regulations of the board | Rules and regulations of the board of directors of Banco Santander | | RWA | Risk weighted assets | | Sales conversion | Indicator that measures the effectiveness of a commercial process in converting opportunities into actual sales | | SAM | Santander Asset Management | | SAR | Saudi riyal | | SASB | Sustainability Accounting Standards Board | | SBNA | Santander Bank N.A. | | SBTi | Science Based Targets initiative | | SC USA | Santander Consumer US | | SCAN | Santander Customer Assessment Note | | SCF | Santander Consumer Finance | | SCIB | Santander Corporate & Investment Banking | | SCUK | Santander Consumer UK Plc | | SDG | Sustainable development goals | | SEC | Securities and Exchange Commission | | Second 2025 Buyback Programme | Second share buyback programme charged against 2025 results | | SFDR | Sustainable Finance Disclosure Regulation. Regulation (EU) 2019/2088 sustainability disclosures | | SFICS | Sustainable finance and investment classification system | | Share of wallet | Indicator that measures how much (on average) consumers spend on a company's product or service as compared to how much they spend on competing products or services | | Share of wallet | How much a consumer spends on a company's product or service as compared to how much he spends on competing products and services | | SHUSA | Santander Holding USA, Inc | | SIA | Saving and investment account | | SICR | Significant increase in credit risk | | SIU | Saving and investment union | | SLL | Sustainability-linked loans | | SME | Small and medium enterprises | | SN | Sustainability note | | SOx | Sarbanes-Oxley Act of 2002 | | Spain's Act 10/2014 | Spain's Act 10/2014 of 26 June 2014 on the Regulation, Supervision and Solvency of Credit Institutions | | Spain's CNMV Corporate Governance Code | CNMV Good Governance Code for Listed Companies | | Spain's Companies Act | Spain's Companies Act, approved by Legislative Royal Decree 1/2010, of 2 July | | Spain's Corporate Governance Code | CNMV Good Governance Code for Listed Companies | | Spain's Securities Markets Act | Spain's Act 6/2023, of 17 March, on the Securities Markets and on Investment Services | | SRB | European Single Resolution Board | | SREP | Supervisory Review and Evaluation Process | | SRI | Socially responsible investment | | SRT | Significant risk transfer | | STF | Supremo Tribunal Federal (Brazilian Supreme Federal Court) | Annual report 2025606 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Business model](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [and strategy](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_37) | | [Sustainability](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [statement](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_46) | | [Corporate](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [governance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_433) | | [Economic and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [financial review](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_649) | | [Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [and compliance](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_781) | | | | | | --- | --- | | | | | SVA | Shareholder value added | | sVaR | Stressed value at risk | | T&O | Technology & operations | | TCFD | Task Force on Climate-related Financial Disclosures | | tCS | Tonne of crude steel | | Time-to-market | The length of time it takes for a product or service to being available for purchase | | TJ | Terajoule | | TLAC | Total loss-absorbing capacity requirement which is required to be met under the CRD V package | | TLTRO | Targeted longer-term refinancing operations of the ECB | | TNAV | Tangible net asset value | | TNFD | Taskforce on Nature-related Financial Disclosure | | Token | Digital unit that represents a value, right, or asset within a technological system, typically based on blockchain | | Tokenization | Process by which a tangible or intangible asset is digitally represented through a token on a blockchain network or other secure technological infrastructure | | TPV | Total payments volume | | TSB | TSB Banking Group plc | | TSR | Total shareholder return | | UK | United Kingdom | | UN | United Nations | | UNEP FI | United Nations Environmental Programme Finance Initiative | | UNGP | United Nations Guiding Principles | | UoP | Use of Proceeds | | US | United States | | USA | United States of America | | USD | United States dollar | | UST | United States Treasury | | UYU | Uruguayan peso | | VaE | Value at earnings | | VaR | Value at risk | | VAT | Value added tax | | vkm | Vehicle-kilometre | | VP | Vice President | | Wealth | Wealth Management & Insurance (primary business segment) | | Webster | Webster Financial Corporation | | WEF | World Economic Forum | | YoY | Year-on-Year | Annual report 2025607 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | ![7.InfoAuditoriayCuentas_ENG.jpg]() Auditor's report and consolidated financial statements Annual report 2025608 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | A [uditor's report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916)[609](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [Consolidated financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) 512 [Consolidated balance sheets as of 31 December](#i6ecb2a0d58d04b53bfadfa2a833efaa7_931) [2025, 2024 and 2023](#i6ecb2a0d58d04b53bfadfa2a833efaa7_931)513 [Consolidated income statements for the years](#i6ecb2a0d58d04b53bfadfa2a833efaa7_934) [ended 31 December 2025, 2024 and 2023](#i6ecb2a0d58d04b53bfadfa2a833efaa7_934) 517 [Consolidated statements of recognised income and expense](#i6ecb2a0d58d04b53bfadfa2a833efaa7_937) [for the years ended 31 December](#i6ecb2a0d58d04b53bfadfa2a833efaa7_937) [2025, 2024 and 2023](#i6ecb2a0d58d04b53bfadfa2a833efaa7_937)519 [Consolidated statements of changes in total equity for the](#i6ecb2a0d58d04b53bfadfa2a833efaa7_940) [years ended 31 December 2025, 2024 and 2023](#i6ecb2a0d58d04b53bfadfa2a833efaa7_940)520 [Consolidated statements of cash flows for the years](#i6ecb2a0d58d04b53bfadfa2a833efaa7_943) [ended 31 December 2025, 2024 and 2023](#i6ecb2a0d58d04b53bfadfa2a833efaa7_943)526 [Notes to the consolidated financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946)[635](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [1.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_949)[Introduction, basis of presentation of the](#i6ecb2a0d58d04b53bfadfa2a833efaa7_949) [consolidated financial statements (consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_949) [annual accounts) and other information](#i6ecb2a0d58d04b53bfadfa2a833efaa7_949)[636](#i6ecb2a0d58d04b53bfadfa2a833efaa7_949) [2.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_970)[Accounting policies](#i6ecb2a0d58d04b53bfadfa2a833efaa7_970)[641](#i6ecb2a0d58d04b53bfadfa2a833efaa7_970) [3.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_991)[Grupo Santander](#i6ecb2a0d58d04b53bfadfa2a833efaa7_991)[667](#i6ecb2a0d58d04b53bfadfa2a833efaa7_991) [4.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1006)[Distribution of Banco Santander’s profit, shareholder](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1006) [remuneration scheme and earnings per share](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1006)[670](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1006) [5.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1009)[Remuneration and other benefits paid to the Bank’s](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1009) [directors and senior managers](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1009) [672](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1009) [6.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1027)[Loans and advances to central banks and credit](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1027) [institutions](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1027)[685](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1027) [7.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1030)[Debt securities](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1030)[686](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1030) [8.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1033)[Equity instruments](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1033)[688](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1033) [9.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1042)[Trading derivatives (assets and liabilities)](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1042) [and short positions](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1042) [689](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1042) [10. Loans and advances to customers](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1045)[689](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1045) [11. Trading derivatives](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1048) [695](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1048) [12. Non-current assets](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1051) [695](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1051) [13. Investments](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1054)[696](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1054) [14. Insurance contracts linked to pensions](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1057)[698](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1057) [15. Liabilities under insurance contracts](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1060) [699](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1060) [16. Tangible assets](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1063) [700](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1063) [17. Intangible assets - Goodwill](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1066)[703](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1066) [18. Intangible assets - Other intangible assets](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1069) [705](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1069) [19. Other assets](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1075) [706](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1075) [20. Deposits from central banks and credit institutions](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1078)[707](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1078) [21. Customer deposits](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1081)[707](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1081) [22. Marketable debt securities](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1084) [708](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1084) [23. Subordinated liabilities](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1087) [711](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1087) [24. Other financial liabilities](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1093)[715](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1093) [25. Provisions](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1096) [715](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1096) [26. Other liabilities](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1108)[730](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1108) [27. Tax matters](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1111)[731](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1111) [28. Non-controlling interests](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1126)[738](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1126) [29. Other comprehensive income](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1135)[739](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1135) [30. Shareholders' equity](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1138)[745](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1138) [31. Issued capital](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1141) [745](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1141) [32. Share premium](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1144)[746](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1144) [33. Accumulated retained earnings](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1147)[747](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1147) [34. Other equity instruments and own shares](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1150)[748](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1150) [35. Memorandum items](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1153)[749](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1153) [36. Hedging derivatives](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1156)[749](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1156) [37. Discontinued operations](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1162) [772](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1162) [38. Interest income](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1165) [773](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1165) [39. Interest expense](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1168)[773](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1168) [40. Dividend income](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1171)[773](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1171) [41. Commission income](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1174)[773](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1174) [42. Commission expense](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1177)[774](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1177) [43. Gains or losses on financial assets and liabilities](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1180) [774](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1180) [44. Exchange differences, net](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1183)[775](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1183) [45. Other operating income and expenses](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1186)[775](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1186) [46. Staff costs](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1189)[775](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1189) [47. Other general administrative expenses](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1204) [781](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1204) [48. Gains or losses on non financial assets, net](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1216)[783](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1216) [49. Gains or losses on non-current assets held for](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1219) [sale not classified as discontinued operations](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1219)[783](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1219) [50. Fair value of financial instruments](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1222)[783](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1222) [51. Other disclosures](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1225)[799](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1225) [52. Primary and secondary segments reporting](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1231)[812](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1231) [53. Related parties](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1240)[828](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1240) [54. Risk management](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1243) [831](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1243) [55. Explanation added for translation to English](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1297)[863](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1297) [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306)[864](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [Appendix I. Subsidiaries of Banco Santander, S.A.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1309)[865](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1309) [Appendix II. Societies of which the Group owns more](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1327) [than 5%, entities associated with Grupo Santander](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1327) [and jointly controlled entities](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1327) [888](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1327) [Appendix III. Issuing subsidiaries of shares and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1333) [preference shares](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1333)[895](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1333) [Appendix IV. Notifications of acquisitions and](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1339) [disposals of investments in 2025](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1339)[896](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1339) [Appendix V. Other information on the Group’s banks](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1342)[897](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1342) [Appendix VI. Annual banking report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1345)[904](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1345) Annual report 2025609 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | ![8.InfoAuditoria_ENG.jpg]() Auditor's report Annual report 2025610 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | ![Informe Auditoría Cuentas Anuales Consolidadas Grupo Santander 2025_ingles_Página_1.jpg]() Annual report 2025611 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | ![Informe Auditoría Cuentas Anuales Consolidadas Grupo Santander 2025_ingles_Página_2.jpg]() Annual report 2025612 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | ![Informe Auditoría Cuentas Anuales Consolidadas Grupo Santander 2025_ingles_Página_3.jpg]() Annual report 2025613 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | ![Informe Auditoría Cuentas Anuales Consolidadas Grupo Santander 2025_ingles_Página_4.jpg]() Annual report 2025614 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | ![Informe Auditoría Cuentas Anuales Consolidadas Grupo Santander 2025_ingles_Página_5.jpg]() Annual report 2025615 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | ![Informe Auditoría Cuentas Anuales Consolidadas Grupo Santander 2025_ingles_Página_6.jpg]() Annual report 2025616 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | ![Informe Auditoría Cuentas Anuales Consolidadas Grupo Santander 2025_ingles_Página_7.jpg]() Annual report 2025617 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | ![Informe Auditoría Cuentas Anuales Consolidadas Grupo Santander 2025_ingles_Página_8.jpg]() Annual report 2025618 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | ![Informe Auditoría Cuentas Anuales Consolidadas Grupo Santander 2025_ingles_Página_9.jpg]() Annual report 2025619 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | ![9.EstadosFinancieros_ENG.jpg]() Consolidated financial statements Annual report 2025620 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Translation of the consolidated annual accounts originally issued in Spanish and prepared in accordance with the regulatory financial reporting framework applicable to the Group in Spain (see Notes 1 and 55). In the event of a discrepancy, the Spanish- version prevails. #### Grupo Santander | | | | | | | --- | --- | --- | --- | --- | | | | | | | | CONSOLIDATED BALANCE SHEETS AS OF 31 DECEMBER 2025, 2024 AND 2023 | | | | | | EUR million | | | | | | | | | | | | ASSETS | Note | 2025 | 2024A | 2023A | | CASH, CASH BALANCES AT CENTRAL BANKS AND OTHER DEPOSITS ON DEMAND | | 152,281 | 192,208 | 220,342 | | FINANCIAL ASSETS HELD FOR TRADING | | 252,318 | 230,253 | 176,921 | | Derivatives | 9 and 11 | 58,355 | 64,100 | 56,328 | | Equity instruments | 8 | 22,030 | 16,636 | 15,057 | | Debt securities | 7 | 98,568 | 82,646 | 62,124 | | Loans and advances | | 73,365 | 66,871 | 43,412 | | Central banks | 6 | 14,632 | 12,966 | 17,717 | | Credit institutions | 6 | 25,967 | 27,314 | 14,061 | | Customers | 10 | 32,766 | 26,591 | 11,634 | | NON-TRADING FINANCIAL ASSETS MANDATORILY AT FAIR VALUE THROUGH PROFIT OR LOSS | | 7,761 | 6,130 | 5,910 | | Equity instruments | 8 | 5,815 | 4,641 | 4,068 | | Debt securities | 7 | 245 | 447 | 860 | | Loans and advances | | 1,701 | 1,042 | 982 | | Central banks | 6 | — | — | — | | Credit institutions | 6 | — | — | — | | Customers | 10 | 1,701 | 1,042 | 982 | | FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | | 8,046 | 7,915 | 9,773 | | Debt securities | 7 | 2,894 | 2,897 | 3,095 | | Loans and advances | | 5,152 | 5,018 | 6,678 | | Central banks | 6 | — | — | — | | Credit institutions | 6 | 413 | 408 | 459 | | Customers | 10 | 4,739 | 4,610 | 6,219 | | FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME | | 74,612 | 89,898 | 83,308 | | Equity instruments | 8 | 2,281 | 2,193 | 1,761 | | Debt securities | 7 | 58,305 | 76,558 | 73,565 | | Loans and advances | | 14,026 | 11,147 | 7,982 | | Central banks | 6 | — | — | — | | Credit institutions | 6 | 1,120 | 363 | 313 | | Customers | 10 | 12,906 | 10,784 | 7,669 | | FINANCIAL ASSETS AT AMORTIZED COST | | 1,202,689 | 1,203,707 | 1,191,403 | | Debt securities | 7 | 140,014 | 120,949 | 103,559 | | Loans and advances | | 1,062,675 | 1,082,758 | 1,087,844 | | Central banks | 6 | 15,986 | 16,179 | 20,082 | | Credit institutions | 6 | 61,513 | 55,537 | 57,917 | | Customers | 10 | 985,176 | 1,011,042 | 1,009,845 | | HEDGING DERIVATIVES | 36 | 3,931 | 5,672 | 5,297 | | CHANGES IN THE FAIR VALUE OF HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | 54 | 50 | (704) | (788) | | | | | | | Annual report 2025621 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | CONSOLIDATED BALANCE SHEETS AS OF 31 DECEMBER 2025, 2024 AND 2023 | | | | | | EUR million | | | | | | | | | | | | ASSETS | Note | 2025 | 2024A | 2023A | | INVESTMENTS | 13 | 7,052 | 7,277 | 7,646 | | Joint venture entities | | 1,956 | 2,061 | 1,964 | | Associated entities | | 5,096 | 5,216 | 5,682 | | ASSETS UNDER REINSURANCE CONTRACTS | | 223 | 222 | 237 | | TANGIBLE ASSETS | | 27,438 | 32,087 | 33,882 | | Property, plant and equipment | 16 | 26,416 | 31,212 | 32,926 | | For own-use | | 11,663 | 12,636 | 13,408 | | Leased out under an operating lease | | 14,753 | 18,576 | 19,518 | | Investment properties | 16 | 1,022 | 875 | 956 | | Of which leased out under an operating lease | | 860 | 749 | 851 | | INTANGIBLE ASSETS | | 17,308 | 19,259 | 19,871 | | Goodwill | 17 | 11,958 | 13,438 | 14,017 | | Other intangible assets | 18 | 5,350 | 5,821 | 5,854 | | TAX ASSETS | | 30,076 | 30,596 | 31,390 | | Current tax assets | | 11,132 | 11,426 | 10,623 | | Deferred tax assets | 27 | 18,944 | 19,170 | 20,767 | | OTHER ASSETS | | 8,719 | 8,559 | 8,856 | | Insurance contracts linked to pensions | 14 | 67 | 81 | 93 | | Inventories | | 7 | 6 | 7 | | Other | 19 | 8,645 | 8,472 | 8,756 | | NON-CURRENT ASSETS HELD FOR SALE | 12 | 75,011 | 4,002 | 3,014 | | TOTAL ASSETS | | 1,867,515 | 1,837,081 | 1,797,062 | A. Presented for comparison purposes only (note 1.d). The accompanying notes 1 to 55 and appendices are an integral part of the consolidated balance sheet as of 31 December 2025 . Annual report 2025622 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | CONSOLIDATED BALANCE SHEETS AS OF 31 DECEMBER 2025, 2024 AND 2023 | | | | | | EUR million | | | | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | LIABILITIES | Note | 2025 | 2024A | 2023A | | FINANCIAL LIABILITIES HELD FOR TRADING | | 171,546 | 152,151 | 122,270 | | Derivatives | 9 and 11 | 51,968 | 57,753 | 50,589 | | Short positions | 9 | 44,015 | 35,830 | 26,174 | | Deposits | | 75,563 | 58,568 | 45,507 | | Central banks | 20 | 12,385 | 13,300 | 7,808 | | Credit institutions | 20 | 27,058 | 26,284 | 17,862 | | Customers | 21 | 36,120 | 18,984 | 19,837 | | Marketable debt securities | 22 | — | — | — | | Other financial liabilities | 24 | — | — | — | | FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | | 42,148 | 36,360 | 40,367 | | Deposits | | 30,440 | 28,806 | 34,996 | | Central banks | 20 | 3,086 | 1,774 | 1,209 | | Credit institutions | 20 | 1,424 | 1,625 | 1,735 | | Customers | 21 | 25,930 | 25,407 | 32,052 | | Marketable debt securities | 22 | 11,686 | 7,554 | 5,371 | | Other financial liabilities | 24 | 22 | — | — | | Memorandum items: subordinated liabilities | 23 | — | — | — | | FINANCIAL LIABILITIES AT AMORTIZED COST | | 1,421,184 | 1,484,322 | 1,468,703 | | Deposits | | 1,072,384 | 1,126,439 | 1,125,308 | | Central banks | 20 | 18,542 | 24,882 | 48,782 | | Credit institutions | 20 | 74,692 | 90,012 | 81,246 | | Customers | 21 | 979,150 | 1,011,545 | 995,280 | | Marketable debt securities | 22 | 312,704 | 317,967 | 303,208 | | Other financial liabilities | 24 | 36,096 | 39,916 | 40,187 | | Memorandum items: subordinated liabilities | 23 | 29,287 | 35,813 | 30,912 | | HEDGING DERIVATIVES | 36 | 4,248 | 4,752 | 7,656 | | CHANGES IN THE FAIR VALUE OF HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | 54 | 49 | (9) | 55 | | LIABILITIES UNDER INSURANCE CONTRACTS | 15 | 18,737 | 17,829 | 17,799 | | PROVISIONS | 25 | 8,355 | 8,407 | 8,441 | | Pensions and other post-retirement obligations | | 1,656 | 1,731 | 2,225 | | Other long term employee benefits | | 993 | 915 | 880 | | Taxes and other legal contingencies | | 2,989 | 2,717 | 2,715 | | Contingent liabilities and commitments | | 713 | 710 | 702 | | Other provisions | | 2,004 | 2,334 | 1,919 | | TAX LIABILITIES | | 9,568 | 9,598 | 9,932 | | Current tax liabilities | | 3,664 | 3,322 | 3,846 | | Deferred tax liabilities | 27 | 5,904 | 6,276 | 6,086 | | OTHER LIABILITIES | 26 | 15,937 | 16,344 | 17,598 | | LIABILITIES ASSOCIATED WITH NON-CURRENT ASSETS HELD FOR SALE | | 62,995 | — | — | | TOTAL LIABILITIES | | 1,754,767 | 1,729,754 | 1,692,821 | Annual report 2025623 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | CONSOLIDATED BALANCE SHEETS AS OF 31 DECEMBER 2025, 2024 AND 2023 | | | | | | EUR million | | | | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EQUITY | Note | 2025 | 2024A | 2023A | | SHAREHOLDERS´ EQUITY | 30 | 141,144 | 135,196 | 130,443 | | CAPITAL | 31 | 7,345 | 7,576 | 8,092 | | Called up paid capital | | 7,345 | 7,576 | 8,092 | | Unpaid capital which has been called up | | — | — | — | | SHARE PREMIUM | 32 | 36,792 | 40,079 | 44,373 | | EQUITY INSTRUMENTS ISSUED OTHER THAN CAPITAL | 34 | — | — | 720 | | Equity component of the compound financial instrument | | — | — | — | | Other equity instruments issued | | — | — | 720 | | OTHER EQUITY | 34 | 273 | 217 | 195 | | ACCUMULATED RETAINED EARNINGS | 33 | 91,959 | 82,326 | 74,114 | | REVALUATION RESERVES | 33 | — | — | — | | OTHER RESERVES | 33 | (7,532) | (5,976) | (5,751) | | Reserves or accumulated losses in joint venture investments | | 1,643 | 1,831 | 1,762 | | Others | | (9,175) | (7,807) | (7,513) | | (-) OWN SHARES | 34 | (96) | (68) | (1,078) | | PROFIT OR LOSS ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT | | 14,101 | 12,574 | 11,076 | | (-) INTERIM DIVIDENDS | 4 | (1,698) | (1,532) | (1,298) | | OTHER COMPREHENSIVE INCOME OR LOSS | 29 | (37,974) | (36,595) | (35,020) | | Items that will not be reclassified to profit or loss | | (4,121) | (4,757) | (5,212) | | Items that may be reclassified to profit or loss | | (33,853) | (31,838) | (29,808) | | NON-CONTROLLING INTEREST | 28 | 9,578 | 8,726 | 8,818 | | Other comprehensive income or loss | | (1,947) | (2,020) | (1,559) | | Other items | | 11,525 | 10,746 | 10,377 | | TOTAL EQUITY | | 112,748 | 107,327 | 104,241 | | TOTAL LIABILITIES AND EQUITY | | 1,867,515 | 1,837,081 | 1,797,062 | | MEMORANDUM ITEMS: OFF BALANCE SHEET AMOUNTS | 35 | | | | | Loan commitments granted | | 321,234 | 302,861 | 279,589 | | Financial guarantees granted | | 17,449 | 16,901 | 15,435 | | Other commitments granted | | 148,118 | 134,493 | 113,273 | A.  Presented for comparison purposes only (note 1.d). The accompanying notes 1 to 55 and appendices are an integral part of the consolidated balance sheet as of 31 December 2025. Annual report 2025624 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | CONSOLIDATED INCOME STATEMENTS FOR THE YEARS ENDED 31 DECEMBER 2025, 2024 AND 2023 | | | | | | EUR million | | | | | | | | | | | | | (Debit) Credit | | | | | | Note | 2025 | 2024A | 2023A | | Interest income | 38 | 101,710 | 109,012 | 101,742 | | Financial assets at fair value through other comprehensive income | | 5,713 | 6,931 | 5,533 | | Financial assets at amortized cost | | 76,248 | 80,992 | 74,799 | | Other interest income | | 19,749 | 21,089 | 21,410 | | Interest expense | 39 | (59,362) | (65,225) | (61,092) | | Interest income/(charges) | | 42,348 | 43,787 | 40,650 | | Dividend income | 40 | 715 | 710 | 568 | | Income from companies accounted for using the equity method | 13 | 665 | 687 | 591 | | Commission income | 41 | 17,387 | 16,834 | 15,644 | | Commission expense | 42 | (4,411) | (4,458) | (4,149) | | Gain or losses on financial assets and liabilities not measured at fair value through profit or loss, net | 43 | 127 | (117) | 96 | | Financial assets at amortized cost | | (89) | (190) | (3) | | Other financial assets and liabilities | | 216 | 73 | 99 | | Gain or losses on financial assets and liabilities held for trading, net | 43 | 1,017 | 1,344 | 2,316 | | Reclassification of financial assets at fair value through other comprehensive income | | — | — | — | | Reclassification of financial assets at amortized cost | | — | — | — | | Other gains (losses) | | 1,017 | 1,344 | 2,316 | | Gains or losses on non-trading financial assets and liabilities mandatorily at fair value through profit or loss | 43 | 1,106 | 495 | 198 | | Reclassification of financial assets at fair value through other comprehensive income | | — | — | — | | Reclassification of financial assets at amortized cost | | — | — | — | | Other gains (losses) | | 1,106 | 495 | 198 | | Gain or losses on financial assets and liabilities measured at fair value through profit or loss, net | 43 | (307) | 691 | (92) | | Gain or losses from hedge accounting, net | 43 | 12 | 14 | 69 | | Exchange differences, net | 44 | 407 | (216) | (22) | | Other operating income B | 45 | 1,583 | 846 | 1,137 | | Other operating expenses | 45 | (2,070) | (2,258) | (2,766) | | Income from insurance and reinsurance contracts | | 476 | 470 | 460 | | Expenses from insurance and reinsurance contracts | | (385) | (449) | (449) | Annual report 2025625 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | CONSOLIDATED INCOME STATEMENTS FOR THE YEARS ENDED 31 DECEMBER 2025, 2024 AND 2023 | | | | | | EUR million | | | | | | | | | | | | | (Debit) Credit | | | | | | Note | 2025 | 2024A | 2023A | | Total income | | 58,670 | 58,380 | 54,251 | | Administrative expenses | | (21,533) | (21,970) | (21,546) | | Staff costs | 46 | (13,633) | (13,825) | (13,275) | | Other general administrative expenses | 47 | (7,900) | (8,145) | (8,271) | | Depreciation and amortisation cost | 16 and 18 | (3,178) | (3,179) | (3,086) | | Provisions or reversal of provisions, net | 25 | (2,729) | (3,465) | (2,410) | | Impairment or reversal of impairment at financial assets not measured at fair value through  profit or loss and net gains and losses from changes | | (12,546) | (12,136) | (12,298) | | Financial assets at fair value through other comprehensive income | | (29) | 1 | (24) | | Financial assets at amortized cost | 10 | (12,517) | (12,137) | (12,274) | | Impairment or reversal of impairment of investments in subsidiaries, joint ventures and associates, net | 17 and 18 | — | — | — | | Impairment or reversal of impairment on non-financial assets, net | | (251) | (624) | (237) | | Tangible assets | 16 | (129) | (382) | (135) | | Intangible assets | 17 and 18 | (112) | (231) | (73) | | Others | | (10) | (11) | (29) | | Gain or losses on non-financial assets and investments, net | 48 | — | 368 | 312 | | Negative goodwill recognized in results | | 22 | — | 39 | | Gains or losses on non-current assets held for sale not classified as discontinued operations | 49 | 226 | (27) | (20) | | Operating profit/(loss) before tax | | 18,681 | 17,347 | 15,005 | | Tax expense or income from continuing operations | 27 | (4,723) | (4,844) | (3,880) | | Profit/(loss) from continuing operations | | 13,958 | 12,503 | 11,125 | | Profit/(loss) after tax from discontinued operations | 37 | 1,542 | 1,241 | 1,058 | | Profit/(loss) for the year | | 15,500 | 13,744 | 12,183 | | Profit/(loss) attributable to non-controlling interests | 28 | 1,399 | 1,170 | 1,107 | | Profit/(loss) attributable to the parent | | 14,101 | 12,574 | 11,076 | | Earnings/(losses) per share | | | | | | Basic | 4 | 0.905 | 0.771 | 0.654 | | Diluted | 4 | 0.900 | 0.768 | 0.651 | A. Presented for comparison purposes only (note 1.d). B. Includes EUR -486 million at 31 December 2025 (EUR -1,225 and EUR -1,016 at 31 December 2024 and 2023, respectively) derived from the net loss generated in Argentina as a result of the application of IAS 29 Financial reporting in hyperinflationary economies. The accompanying notes 1 to 55 and appendices are an integral part of the consolidated income statement for the year ended 31 December 2025 . Annual report 2025626 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | CONSOLIDATED STATEMENTS OF RECOGNISED INCOME AND EXPENSE FOR THE YEARS ENDED 31 DECEMBER 2025, 2024 AND 2023 | | | | | | EUR million | | | | | | | Note | 2025 | 2024A | 2023A | | CONSOLIDATED PROFIT/(LOSS) FOR THE YEAR | | 15,500 | 13,744 | 12,183 | | OTHER RECOGNISED INCOME AND EXPENSE | | (1,858) | (2,339) | 614 | | Items that will not be reclassified to profit or loss | 29 | 100 | 219 | (964) | | Actuarial gains and losses on defined benefit pension plans | | (73) | (584) | (1,038) | | Non-current assets held for sale | | 10 | — | — | | Other recognised income and expense of investments in subsidiaries, joint ventures and associates | | 1 | (3) | (5) | | Changes in the fair value of equity instruments measured at fair value through other comprehensive income | | 245 | 447 | (162) | | Gains or losses resulting from the accounting for hedges of equity instruments measured at fair value through other comprehensive income, net | 36 | — | — | — | | Changes in the fair value of equity instruments measured at fair value through other comprehensive income (hedged item) | | (76) | 20 | (29) | | Changes in the fair value of equity instruments measured at fair value through other comprehensive income (hedging instrument) | | 76 | (20) | 29 | | Changes in the fair value of financial liabilities at fair value through profit or loss attributable to changes in credit risk | | (160) | 277 | (120) | | Income tax relating to items that will not be reclassified | | 77 | 82 | 361 | | Items that may be reclassified to profit or loss | 29 | (1,958) | (2,558) | 1,578 | | Hedges of net investments in foreign operations (effective portion) | 36 | 195 | 420 | (1,888) | | Revaluation gains (losses) | | 195 | 420 | (1,888) | | Amounts transferred to income statement | | — | — | — | | Other reclassifications | | — | — | — | | Exchanges differences | | (3,399) | (3,047) | 1,017 | | Revaluation gains (losses) | | (3,399) | (3,047) | 1,009 | | Amounts transferred to income statement | | — | — | 8 | | Other reclassifications | | — | — | — | | Cash flow hedges (effective portion) | 36 | 867 | 558 | 2,592 | | Revaluation gains (losses) | | 158 | (698) | (30) | | Amounts transferred to income statement | | 709 | 1,256 | 2,622 | | Transferred to initial carrying amount of hedged items | | — | — | — | | Other reclassifications | | — | — | — | | Hedging instruments (items not designated) | 36 | (14) | — | — | | Revaluation gains (losses) | | (1) | — | — | | Amounts transferred to income statement | | (13) | — | — | | Other reclassifications | | — | — | — | | Debt instruments at fair value with changes in other comprehensive income | | 613 | (493) | 858 | | Revaluation gains (losses) | 29 | 715 | (447) | 852 | | Amounts transferred to income statement | | (102) | (46) | 6 | | Other reclassifications | | — | — | — | | Non-current assets held for sale | | 274 | — | — | | Revaluation gains (losses) | | 267 | — | — | | Amounts transferred to income statement | | 7 | — | — | | Other reclassifications | | — | — | — | | Share of other recognised income and expense of investments | | 20 | (108) | 19 | | Income tax relating to items that may be reclassified to profit or loss | | (514) | 112 | (1,020) | | Total recognised income and expenses for the year | | 13,642 | 11,405 | 12,797 | | Attributable to non-controlling interests | | 1,452 | 709 | 1,401 | | Attributable to the parent | | 12,190 | 10,696 | 11,396 | A. Presented for comparison purposes only (note 1.d). The accompanying notes 1 to 55 and appendices are an integral part of the consolidated statement of recognised income and expense for the year ended 31 December 2025 . Annual report 2025627 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | CONSOLIDATED STATEMENTS OF CHANGES IN TOTAL EQUITY FOR THE YEARS ENDED 31 DECEMBER 2025, 2024 AND 2023 | | | | | | | EUR million | | | | | | | | | | | | | | | Capital | Share premium | Equity instruments issued (not capital) | Other equity instruments | Accumulated retained earnings | | Balance at 31 December 2024A | 7,576 | 40,079 | 0 | 217 | 82,326 | | Adjustments due to errors | — | — | — | — | — | | Adjustments due to changes in accounting policies | — | — | — | — | — | | Opening balance at 1 January 2025A | 7,576 | 40,079 | — | 217 | 82,326 | | Total recognised income and expense | — | — | — | — | — | | Other changes in equity | (231) | (3,287) | — | 56 | 9,633 | | Issuance of ordinary shares | — | — | — | — | — | | Issuance of preferred shares | — | — | — | — | — | | Issuance of other financial instruments | — | — | — | — | — | | Maturity of other financial instruments | — | — | — | — | — | | Conversion of financial liabilities into equity | — | — | — | — | — | | Capital reduction | (231) | (3,287) | — | — | — | | Dividends | — | — | — | — | (1,643) | | Purchase of equity instruments | — | — | — | — | — | | Disposal of equity instruments | — | — | — | — | — | | Transfer from equity to liabilities | — | — | — | — | — | | Transfer from liabilities to equity | — | — | — | — | — | | Transfers between equity items | — | — | — | — | 11,276 | | Increases (decreases) due to business combinations | — | — | — | — | — | | Share-based payment | — | — | — | (67) | — | | Others increases or (-) decreases in equity | — | — | — | 123 | — | | Balance at 31 December 2025 | 7,345 | 36,792 | — | 273 | 91,959 | A. Presented for comparison purposes only (note 1.d). The accompanying notes 1 to 55 and appendices are an integral part of the consolidated statement of changes in total equity for the year ended 31 December 2025. Annual report 2025628 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Non-controlling interest | | | | Revaluation reserves | Other reserves | (-) Own shares | Profit attributable to shareholders of the parent | (-) Interim dividends | Other comprehensive income | Other comprehensive income | Other items | Total | | — | (5,976) | (68) | 12,574 | (1,532) | (36,595) | (2,020) | 10,746 | 107,327 | | — | — | — | — | — | — | — | — | — | | — | — | — | — | — | — | — | — | — | | — | (5,976) | (68) | 12,574 | (1,532) | (36,595) | (2,020) | 10,746 | 107,327 | | — | — | — | 14,101 | — | (1,911) | 53 | 1,399 | 13,642 | | — | (1,556) | (28) | (12,574) | (166) | 532 | 20 | (620) | (8,221) | | — | — | — | — | — | — | — | — | — | | — | — | — | — | — | — | — | — | — | | — | — | — | — | — | — | — | — | — | | — | — | — | — | — | — | — | — | — | | — | — | — | — | — | — | — | — | — | | — | 231 | 3,287 | — | — | — | — | (8) | (8) | | — | — | — | — | (1,698) | — | — | (896) | (4,237) | | — | — | (4,081) | — | — | — | — | — | (4,081) | | — | 34 | 766 | — | — | — | — | — | 800 | | — | — | — | — | — | — | — | — | — | | — | — | — | — | — | — | — | — | — | | — | (766) | — | (12,574) | 1,532 | 532 | 20 | (20) | — | | — | — | — | — | — | — | — | (5) | (5) | | — | — | — | — | — | — | — | — | (67) | | — | (1,055) | — | — | — | — | — | 309 | (623) | | — | (7,532) | (96) | 14,101 | (1,698) | (37,974) | (1,947) | 11,525 | 112,748 | Annual report 2025629 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | CONSOLIDATED STATEMENTS OF CHANGES IN TOTAL EQUITY FOR THE YEARS ENDED 31 DECEMBER 2025, 2024 AND 2023 | | | | | | | EUR million | | | | | | | | | | | | | | | Capital | Share premium | Equity instruments issued (not capital) | Other equity instruments | Accumulated retained earnings | | Balance at 31 December 2023A | 8,092 | 44,373 | 720 | 195 | 74,114 | | Adjustments due to errors | — | — | — | — | — | | Adjustments due to changes in accounting policies | — | — | — | — | — | | Opening balance at 1 January 2024A | 8,092 | 44,373 | 720 | 195 | 74,114 | | Total recognised income and expense | — | — | — | — | — | | Other changes in equity | (516) | (4,294) | (720) | 22 | 8,212 | | Issuance of ordinary shares | — | — | — | — | — | | Issuance of preferred shares | — | — | — | — | — | | Issuance of other financial instruments | — | — | — | — | — | | Maturity of other financial instruments | — | — | (751) | — | — | | Conversion of financial liabilities into equity | — | — | — | — | — | | Capital reduction | (516) | (4,294) | — | — | — | | Dividends | — | — | — | — | (1,485) | | Purchase of equity instruments | — | — | — | — | — | | Disposal of equity instruments | — | — | — | — | — | | Transfer from equity to liabilities | — | — | — | — | — | | Transfer from liabilities to equity | — | — | — | — | — | | Transfers between equity items | — | — | — | — | 9,697 | | Increases (decreases) due to business combinations | — | — | — | — | — | | Share-based payment | — | — | — | (62) | — | | Others increases or (-) decreases in equity | — | — | 31 | 84 | — | | Balance at 31 December 2024A | 7,576 | 40,079 | — | 217 | 82,326 | A. Presented for comparison purposes only (note 1.d). The accompanying notes 1 to 55 and appendices are an integral part of the consolidated statement of changes in total equity for the year ended 31 December 2025. Annual report 2025630 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Non-controlling interest | | | | Revaluation reserves | Other reserves | (-) Own shares | Profit attributable to shareholders of the parent | (-) Interim dividends | Other comprehensive income | Other comprehensive income | Other items | Total | | — | (5,751) | (1,078) | 11,076 | (1,298) | (35,020) | (1,559) | 10,377 | 104,241 | | — | — | — | — | — | — | — | — | — | | — | — | — | — | — | — | — | — | — | | — | (5,751) | (1,078) | 11,076 | (1,298) | (35,020) | (1,559) | 10,377 | 104,241 | | — | — | — | 12,574 | — | (1,878) | (461) | 1,170 | 11,405 | | — | (225) | 1,010 | (11,076) | (234) | 303 | — | (801) | (8,319) | | — | — | — | — | — | — | — | — | — | | — | — | — | — | — | — | — | — | — | | — | — | — | — | — | — | — | — | — | | — | — | — | — | — | — | — | (590) | (1,341) | | — | — | — | — | — | — | — | — | — | | — | 516 | 4,294 | — | — | — | — | (93) | (93) | | — | — | — | — | (1,532) | — | — | (660) | (3,677) | | — | — | (4,038) | — | — | — | — | — | (4,038) | | — | 8 | 754 | — | — | — | — | — | 762 | | — | — | — | — | — | — | — | — | — | | — | — | — | — | — | — | — | — | — | | — | (215) | — | (11,076) | 1,298 | 303 | — | (7) | — | | — | — | — | — | — | — | — | (8) | (8) | | — | — | — | — | — | — | — | — | (62) | | — | (534) | — | — | — | — | — | 557 | 138 | | — | (5,976) | (68) | 12,574 | (1,532) | (36,595) | (2,020) | 10,746 | 107,327 | Annual report 2025631 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | CONSOLIDATED STATEMENTS OF CHANGES IN TOTAL EQUITY FOR THE YEARS ENDED 31 DECEMBER 2025, 2024 AND 2023 | | | | | | | EUR million | | | | | | | | | | | | | | | Capital | Share premium | Equity instruments issued (not capital) | Other equity instruments | Accumulated retained earnings | | Balance at 31 December 2022A | 8,397 | 46,273 | 688 | 175 | 66,702 | | Adjustments due to errors | — | — | — | — | — | | Adjustments due to changes in accounting policies | — | — | — | — | — | | Opening balance at 1 January 2023A | 8,397 | 46,273 | 688 | 175 | 66,702 | | Total recognised income and expense | — | — | — | — | — | | Other changes in equity | (305) | (1,900) | 32 | 20 | 7,412 | | Issuance of ordinary shares | — | — | — | — | — | | Issuance of preferred shares | — | — | — | — | — | | Issuance of other financial instruments | — | — | — | — | — | | Maturity of other financial instruments | — | — | — | — | — | | Conversion of financial liabilities into equity | — | — | — | — | — | | Capital reduction | (305) | (1,900) | — | — | — | | Dividends | — | — | — | — | (963) | | Purchase of equity instruments | — | — | — | — | — | | Disposal of equity instruments | — | — | — | — | — | | Transfer from equity to liabilities | — | — | — | — | — | | Transfer from liabilities to equity | — | — | — | — | — | | Transfers between equity items | — | — | — | — | 8,375 | | Increases (decreases) due to business combinations | — | — | — | — | — | | Share-based payment | — | — | — | (60) | — | | Others increases or (-) decreases in equity | — | — | 32 | 80 | — | | Balance at 31 December 2023A | 8,092 | 44,373 | 720 | 195 | 74,114 | A. Presented for comparison purposes only (note 1.d). The accompanying notes 1 to 55 and appendices are an integral part of the consolidated statement of changes in total equity for the year ended 31 December 2025 . Annual report 2025632 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Non-controlling interest | | | | Revaluation reserves | Other reserves | (-) Own shares | Profit attributable to shareholders of the parent | (-) Interim dividends | Other comprehensive income | Other comprehensive income | Other items | Total | | — | (5,454) | (675) | 9,605 | (979) | (35,628) | (1,856) | 10,337 | 97,585 | | — | — | — | — | — | — | — | — | — | | — | — | — | — | — | — | — | — | — | | — | (5,454) | (675) | 9,605 | (979) | (35,628) | (1,856) | 10,337 | 97,585 | | — | — | — | 11,076 | — | 320 | 294 | 1,107 | 12,797 | | — | (297) | (403) | (9,605) | (319) | 288 | 3 | (1,067) | (6,141) | | — | — | — | — | — | — | — | 1 | 1 | | — | — | — | — | — | — | — | — | — | | — | — | — | — | — | — | — | — | — | | — | — | — | — | — | — | — | — | — | | — | — | — | — | — | — | — | — | — | | — | 305 | 1,900 | — | — | — | — | — | — | | — | — | — | — | (1,298) | — | — | (748) | (3,009) | | — | — | (3,109) | — | — | — | — | — | (3,109) | | — | 13 | 806 | — | — | — | — | — | 819 | | — | — | — | — | — | — | — | — | — | | — | — | — | — | — | — | — | — | — | | — | (37) | — | (9,605) | 979 | 288 | 3 | (3) | — | | — | — | — | — | — | — | — | (364) | (364) | | — | — | — | — | — | — | — | — | (60) | | — | (578) | — | — | — | — | — | 47 | (419) | | — | (5,751) | (1,078) | 11,076 | (1,298) | (35,020) | (1,559) | 10,377 | 104,241 | Annual report 2025633 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED 2025, 2024 AND 2023 | | | | | | EUR million | | | | | | | Note | 2025 | 2024A | 2023A | | A. CASH FLOWS FROM OPERATING ACTIVITIES | | (14,835) | (24,155) | 5,015 | | Profit or loss for the year | | 15,500 | 13,744 | 12,183 | | Adjustments made to obtain the cash flows from operating activities | | 31,347 | 28,361 | 26,948 | | Depreciation and amortisation cost | | 3,178 | 3,179 | 3,086 | | Other adjustments | | 28,169 | 25,182 | 23,862 | | Net increase/(decrease) in operating assets | | 119,257 | 117,996 | 74,982 | | Financial assets held-for-trading | | 25,776 | 62,460 | 18,332 | | Non-trading financial assets mandatorily at fair value through profit or loss | | 1,867 | 31 | 286 | | Financial assets at fair value through profit or loss | | 146 | (1,850) | 874 | | Financial assets at fair value through other comprehensive income | | (6,733) | 10,225 | (4,470) | | Financial assets at amortized cost | | 97,964 | 45,995 | 60,525 | | Other operating assets | | 237 | 1,135 | (565) | | Net increase/(decrease) in operating liabilities | | 62,529 | 57,616 | 46,080 | | Financial liabilities held-for-trading | | 20,654 | 34,256 | 5,450 | | Financial liabilities designated at fair value through profit or loss | | 5,858 | (3,854) | (11) | | Financial liabilities at amortized cost | | 35,719 | 34,164 | 40,138 | | Other operating liabilities | | 298 | (6,950) | 503 | | Income tax recovered/(paid) | | (4,954) | (5,880) | (5,214) | | B. CASH FLOWS FROM INVESTING ACTIVITIES | | 534 | (3,712) | (5,366) | | Payments | | 7,925 | 11,355 | 15,056 | | Tangible assets | 16 | 5,854 | 8,494 | 11,446 | | Intangible assets | 18 | 1,805 | 2,104 | 2,197 | | Investments | 13 | 79 | 686 | 139 | | Subsidiaries and other business units | | 187 | 71 | 1,274 | | Non-current assets held for sale and associated liabilities | | — | — | — | | Other payments related to investing activities | | — | — | — | | Proceeds | | 8,459 | 7,643 | 9,690 | | Tangible assets | 16 | 5,206 | 5,966 | 7,074 | | Intangible assets | 18 | — | — | — | | Investments | 13 | 749 | 681 | 814 | | Subsidiaries and other business units | | 54 | 8 | 885 | | Non-current assets held for sale and associated liabilities | 12 | 2,450 | 988 | 917 | | Other proceeds related to investing activities | | — | — | — | | C. CASH FLOW FROM FINANCING ACTIVITIES | | (14,203) | (5,510) | (2,058) | | Payments | | 17,743 | 14,045 | 10,187 | | Dividends | 4 | 3,341 | 3,017 | 2,261 | | Subordinated liabilities | 23 | 8,822 | 4,096 | 2,931 | | Redemption of own equity instruments | | — | 751 | — | | Acquisition of own equity instruments | | 4,081 | 4,038 | 3,109 | | Other payments related to financing activities | | 1,499 | 2,143 | 1,886 | | Proceeds | | 3,540 | 8,535 | 8,129 | | Subordinated liabilities | 23 | 2,287 | 7,001 | 7,007 | | Issuance of own equity instruments | | — | — | — | | Disposal of own equity instruments | | 815 | 765 | 825 | | Other proceeds related to financing activities | | 438 | 769 | 297 | Annual report 2025634 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED 2025, 2024 AND 2023 | | | | | | EUR million | | | | | | | Note | 2025 | 2024A | 2023A | | D. EFFECT OF FOREIGN EXCHANGE RATE DIFFERENCES | | (8,908) | 5,243 | (322) | | E. NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | | (37,412) | (28,134) | (2,731) | | F. CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR | | 192,208 | 220,342 | 223,073 | | G. CASH AND CASH EQUIVALENTS AT END OF THE YEAR | | 154,796 | 192,208 | 220,342 | | COMPONENTS OF CASH AND CASH EQUIVALENTS AT END OF THE YEAR | | | | | | Cash | | 7,357 | 9,253 | 8,621 | | Cash equivalents at central banks | | 135,330 | 170,914 | 199,932 | | Other financial assets | | 9,594 | 12,041 | 11,789 | | Less, bank overdrafts refundable on demand | | — | — | — | | TOTAL CASH AND CASH EQUIVALENTS AT END OF THE YEAR | | 152,281 | 192,208 | 220,342 | | In which, restricted cash | | — | — | — | | TOTAL CASH AND CASH EQUIVALENTS AT END OF PERIOD ASSOCIATED WITH NON- CURRENT ASSETS HELD FOR SALE | 12 | 2,515 | — | — | A. Presented for comparison purposes only (note 1.d). The accompanying notes 1 to 55 and appendices are an integral part of the consolidated statement of cash flows for the year ended 31 December 2025 . Annual report 2025635 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | ![10.Consolidada_ENG.jpg]() Notes to the consolidated financial statements Annual report 2025636 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### Banco Santander, S.A., and Companies #### composing Grupo Santander Notes to the consolidated financial statements (consolidated annual accounts) for the year ended 31 December 2025 . 1. Introduction, basis of presentation of the consolidated financial statements (consolidated annual accounts) and other information #### a) Introduction Banco Santander, S.A. ('the parent' or 'Banco Santander'), is a private-law entity subject to the rules and regulations applicable to banks operating in Spain , where it was constituted and currently maintains its legal domicile, which is paseo de Pereda, numbers 9 to 12, 39004, Santander, Spain . The principal headquarters of Banco Santander are located in Ciudad Grupo Santander, Avenida Cantabria s/n, 28660, Boadilla del Monte, Madrid, S pain. The corporate purpose of Banco Santander, S.A. mainly entails carrying out all kinds of activities, operations and services inherent to the banking business in general and permitted by current legislation, and the acquisition, holding, enjoyment and disposal of all kinds of securities. In addition to the operations carried on directly by it, Banco Santander is the head of a group of subsidiaries that engage in various business activities and which compose, together with it, Grupo Santander ('Santander' or 'the Group'). Therefore, Banco Santander is obliged to prepare, in addition to its own separate financial statements, the Group's consolidated financial statements, which also include the interests in joint ventures and investments in associates. At 31 December 2025, Grupo Santander consisted of 755 subsidiaries of Banco Santander, S.A. In addition, other 191 companies are associates of the Group, joint ventures or companies of which the Group holds more than 5% (excluding the Group companies of negligible interest with respect to the fair presentation that the annual accounts must express). Grupo Santander consolidated financial statements for 2023 were approved by the shareholders at the group´s annual general meeting on 22 March 2024. Grupo Santander consolidated financial statements for 2024 were approved by the shareholders at the group´s annual general meeting on 4 April 2025. The Group's 2025 consolidated financial statements, the financial statements of the parent and of substantially all the Group companies have not been approved yet by their shareholders at the respective annual general meetings. However, Banco Santander board of directors considers that the aforementioned financial statements will be approved without any significant changes. b) #### Basis of presentation of the consolidated #### financial statements Under Regulation (EC) n.º 1606/2002 of the European Parliament and of the Council of 19 July 2002 all companies governed by the law of an EU Member State and whose securities are admitted to trading on a regulated market of any Member State must prepare their consolidated financial statements for the years beginning on or after 1 January 2005 in conformity with the International Financial Reporting Standards ('IFRS') previously adopted by the European Union ('EU-IFRS'). In order to adapt the accounting system of Spanish credit institutions with the principles and criteria established by the IFRS adopted by the European Union ('EU-IFRS'), the Bank of Spain published circular 4/2017, dated 27 November 2017, on Public and Confidential Financial Reporting Standards and Financial Statement Formats and the following regulations. Particularly, during 2025 and 2023, the Bank of Spain published Circulars 1/2025 of 19 December of 2025, and 1/2023 of 24 February of 2023, amending Circular 4/2017 of 27 November to credit institutions on Public and Confidential Financial Reporting Standards and Financial Statement Formats. Grupo Santander consolidated financial statements for 2025 were authorised by the Bank's directors (at the board meeting on 24 February 2026) in accordance with International Financial Reporting Standards as adopted by the European Union and with Bank of Spain circular 4/2017 and subsequent modifications, and Spanish corporate and commercial law applicable to the Group, using the basis of consolidation, accounting policies and measurement bases set forth in note 2, accordingly, they present fairly the Group's equity and financial position at 31 December 2025, 2024 and 2023 and the consolidated results of its operations and the consolidated cash flows in 2025, 2024 and 2023. These consolidated annual accounts have been prepared on the basis of the accounting records held by Banco Santander and by each of the other companies of the Group, and include the adjustments and reclassifications required to standardise the accounting policies and valuation criteria applied by Grupo Santander. The notes to the consolidated financial statements contain additional information to that presented in the consolidated balance sheet, consolidated income statement, consolidated statement of recognised income and expense, consolidated statement of changes in total equity and consolidated statement of cash flows. The notes provide, in a clear, relevant, reliable and comparable manner, narrative descriptions and breakdowns of these statements. The figures of the consolidated annual accounts are presented in millions of euros unless another alternative monetary unit is indicated, rounded to the nearest million unit. Annual report 2025637 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### Adoption of new standards and interpretations issued The following modifications came into force and were adopted by the European Union in 2025 : • IAS 21 Effects of changes in foreign currency exchange rates: IAS 21 established the requirements to apply when there is a temporary lack of interchangeability between two currencies, but did not give indications when this situation was not temporary. Given this scenario, IAS 21 has been modified establishing the criteria to identify these situations, specifying how entities should estimate the spot exchange rate, the methodologies and data to be considered, as well as the associated disclosure requirements. This modification was applied in advance by the Group on 31 December 2024. For more information, see Note 2.a.iv. The application of the aforementioned amendment to accounting standards and interpretations did not have any material effects on Grupo Santander consolidated financial statements. Likewise, at the date of approval of these consolidated annual accounts, the following standards which effectively came into force have effective dates after 31 December 2025: • Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures: (i) amendments to classification and measurement requirements related to the assessment of contractual cash flows of certain financial assets (with ESG characteristics, non-recourse or contractually linked); (ii) an accounting policy option for the derecognition of financial liabilities settled through an electronic payment system is included; (iii) the disclosure requirements related to equity instruments designated at fair value through other comprehensive income are amended; (iv) disclosure requirements are included for financial instruments with contingent characteristics that may modify their contractual cash flows. These amendments will be applicable from 1 January 2026. • Amendments to IFRS 9 and IFRS 7 -  Nature-dependent electricity contracts for electricity contracts dependent on energy sources and susceptible to variations due to uncontrollable factors, such as weather conditions, this modification: (i) clarifies the application of the 'own use' requirements; (ii) allows hedge accounting if these contracts were used as hedging instruments; and, (iii) adds new filing requirements for greater clarity on the impact of these contracts. These modifications will be applicable form 1 January 2026. • IFRS 18 Presentation and Disclosure in Financial Statements, which replaces IAS 1 Presentation of Financial Statements, (i) improves the comparability of the income statement by defining its structure into three categories (operating, investing, and financing) and presenting defined subtotals, including operating profit; (ii) breaks down in the financial statements certain management-defined performance measures related to the income statement; and (iii) improves the aggregation of information for disclosure in the financial statements or notes. The new standard will be applicable from 1 January 2027. • Amendments to IFRS Improvement Cycle: introduces minor amendments, effective from 1 January 2026, to the following standards: • IFRS 1 First-time Adoption of International Financial Reporting Standards, for hedge accounting in first adoption. • IFRS 7 Financial Instruments: Disclosures: updated references and alignment with IFRS 13, as well as clarifications in the Implementation Guidance. • IFRS 9 Financial Instruments: amendment to apply derecognition criteria to lease liabilities recorded by the lessee and replacement of the term 'transaction price' with 'the amount determined in accordance with IFRS 15'. • IFRS10 Consolidated Financial Statements: Determining a 'de facto agent'. • IAS 7 Statement of Cashflows: replacing the term 'cost method' with 'cost'. Finally, at the date of approval of these consolidated annual accounts, the following standards which effectively come into force after 31 December 2025 had not yet been adopted by the European Union: • IFRS 19 Subsidiaries without Public Accountability: Disclosures: this new standard works alongside other IFRS Accounting Standards. An eligible subsidiary applies the requirements in other IFRS Accounting Standards except for the disclosure requirements and instead applies the reduced disclosure requirements in IFRS 19. A subsidiary is eligible if: (i) it does not have public accountability; and (ii) it has an ultimate or intermediate parent that produces consolidated financial statements available for public use that comply with IFRS Accounting Standards. Applicable from 1 January 2027. • IFRS 19 Subsidiaries without Public Accountability: Disclosures: these new amendments help eligible subsidiaries reduce disclosures related to IFRS standards and amendments issued between February 2021 and May 2024. With these amendments, IFRS 19 reflects the IFRS changes that will take effect up to 1 January 2027, when IFRS 19 will become applicable. • Amendments to IAS 21 The effects of Changes in Foreign Exchange Rates: Translation to a Hyperinflationary Presentation Currency: establishes how to translate financial statements when the presentation currency is subject to hyperinflation. Requires converting all amounts, including comparatives, at the closing exchange rates and restating them in accordance with IAS 29. Furthermore, introduces additional disclosures to enhance comparability and reduce diversity in practice. Applicable from 1 January 2027, with early application permitted. Grupo Santander is currently analyzing the possible effects of these new standards and interpretations, and unless expressly indicated otherwise, no significant impacts are expected from their application. Annual report 2025638 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | During 2025, the Group completed the project to adapt its accounting policies relating to hedging transactions to the hedge accounting requirements set out in IFRS 9 (see Note 2.d.v). The main impacts of this change on the accounting for hedging relationships are primarily due to: (i) the mandatory separation of the time value of options (when the hedged risk is the intrinsic value); (ii) and the optional separation of the forward element of foreign exchange forward contracts for all hedges, as well as (iii) the separation of the foreign currency basis spread of a foreign exchange derivative for each hedging relationship. The application of these options to hedges designated before 31 December 2024 did not have a material impact on the Group's consolidated statement of financial position or consolidated profit or loss. All accounting policies and measurement bases with a material effect on the consolidated financial statements for 2025 were applied in the preparation of these consolidated annual accounts. c) #### Use of accounting estimates The consolidated results and the determination of consolidated equity are sensitive to the accounting policies, measurement bases and estimates used by Banco Santander in preparing the consolidated financial statements. The main accounting policies and measurement bases are set forth in note 2. In the consolidated financial statements estimates were occasionally made by the senior management of Grupo Santander in order to quantify certain of the assets, liabilities, income, expenses and obligations reported herein. These estimates, which were made on the basis of the best information available, relate basically to the following: • The impairment losses on certain assets: it applies to financial assets at fair value through other comprehensive income, financial assets at amortised cost, non-current assets held for sale, investments, tangible assets and intangible assets (see Notes 6, 7, 10, 12, 13, 16, 17, 18 and 54). • The assumptions used in the actuarial calculation of the post- employment benefit liabilities and commitments and other obligations (see Note 25). • The useful life of the tangible and intangible assets (see Notes 16 and 18). • The measurement of the impairment in goodwill arising on consolidation (see Note 17). • The calculation of provisions and the consideration of contingent liabilities (see Note 25). • The fair value of certain unquoted assets and liabilities (see Notes 6, 7, 8, 9, 10, 11, 20, 21 and 22). • The recoverability of deferred tax assets (see Note 27). • The fair value of the identifiable assets acquired and the liabilities assumed in business combinations in accordance with IFRS 3 (see Note 17). • The measurement of assets under reinsurance contracts and liabilities under insurance contracts (see Note 15). To update the previous estimates, the Group's management has taken into account the current macroeconomic scenario, characterized by persistent geopolitical tensions and changing financial conditions, as well as the evolution of monetary and fiscal policies in major economies. The analysis also considers developments in interest rates, credit spreads, and currency movements, along with labor market trends in the geographies where the Group operates. The Group's management has evaluated in particular the uncertainties caused by the current environment in relation to credit risk, maintaining active oversight of clients in geographies and sectors more exposed to international trade tensions, global geopolitical uncertainty and the impact of public debt containment policies or fiscal stimulus measures, liquidity and market risks, taking into account the best available information, to estimate the impact on the credit portfolio's impairment provision, and in the debt instruments' interest rates and valuation, developing in the notes the main estimates made during the period ended December 31, 2025 (see notes 10, 17, 50 and 54). Although these estimates have been made on the basis of the best information available at the end of the year 2025, and considering information updated at the date of preparation of these consolidated annual accounts, it is possible that events that may take place in the future may make it necessary to modify them (upwards or downwards) in the coming years, which would be done, if appropriate, in a prospective manner, recognising the effects of the change in estimate in the corresponding consolidated income statement. d) Information relating to 2024 and 2023 The information contained in the consolidated financial statements for the financial years 2024 and 2023 was prepared with the standards in force in said years, and exclusively for comparative purposes with the information relating to the year ended 31 December 2025 . The information in the consolidated income statement from 2024 and 2023 has been restated, as a result of the agreement for the sale of Santander Bank Polska S.A. by Grupo Santander, as required by IFRS 5 (see, mainly, Notes 3 and 37, as well as the rest of the notes of the profit and loss account). Additionally, the segment information corresponding to the years ended 31 December 2024 and 2023 has been restated, in accordance with the changes in the segments' composition of Grupo Santander, as required by IFRS 8 (see note 52). In order to interpret the changes in the balances with respect to 31 December 2025 , it is necessary to take into consideration the exchange rate effect arising from the volume of foreign currency balances held by Grupo Santander in view of its geographic diversity (see note 52.b) and the impact of the appreciation/ depreciation of the various currencies against the euro in 2025, based on the exchange rates at the end of 2025 : Mexican peso (2.05%), US dollar (-11.62%), Brazilian real (-0.47%), Argentinian peso (-37.23%), Sterling pound (-4.99% ), Chilean peso (-2.57%), and Polish zloty (1.30%); as well as the evolution of the comparable average rates: Mexican peso (-8.95%), US dollar (-4.15% ), Brazilian real (-7.86%), Sterling pound (-1.20% ), Chilean peso (-4.90%) and Polish zloty (1.56%). Annual report 2025639 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### e) Capital management i. Regulatory and economic capital Credit institutions must comply with a set of minimum capital and liquidity requirements. These minimum requirements are regulated by the European Capital Requirements Regulation (CRR), which is directly applicable within the Spanish legal framework, and by the Capital Requirements Directive (CRD). On 19 June 2024, the final texts of the update to the banking package were published in the Official Journal of the European Union: Regulation (EU) 2024/1623 (hereinafter, CRR 3), which amends the CRR with regard to requirements for credit risk, credit valuation adjustment risk, operational risk, market risk and the floor on risk-weighted assets (known as the output floor), as well as Directive (EU) 2024/1619 (hereinafter, CRD VI), which amends the CRD as regards supervisory powers, sanctions, third-country branches, and environmental, social and governance risks. The update to the banking package aims, on the one hand, to implement the final Basel III reforms and, on the other, to strengthen the harmonisation of banking supervision within the European Union (EU). CRR 3, applicable since 1 January 2025, introduce greater risk sensitivity into standardised approaches, reduce the variability of risk-weighted assets among banks using internal models to calculate capital requirements, and enhance comparability across banks. Under CRD VI, the ambition to achieve more robust supervision and to safeguard financial stability is reflected in a set of rules affecting fit-and-proper requirements, an extended scope resulting from the revision of certain definitions, and new provisions regarding the establishment of third-country branches in the EU, with the aim of achieving greater regulatory harmonisation and improved supervision of this type of entity. Although most CRR 3 provisions apply since 1 January 2025, for certain provisions the regulator has established a gradual implementation (phase-in) period until 2030 in order to give the industry sufficient time to build up the capital required to meet the requirements on a fully loaded basis. Regarding Market Risk, the European Commission and the European Parliament have approved an additional 12-month delay to the entry into force of the new market risk capital framework, or FRTB, until 1 January 2027. Beyond this date, the CRR 3 does not allow for any further delay, as postponements are limited to two years. This delay also covers other provisions, such as the separation between the trading book and the banking book, the internal risk transfer regime, etc. The CRR 3/CRD VI package contains 140 mandates for the EBA to develop Level 2 or Level 3 legislation (regulatory technical standards, implementing technical standards and guidelines—RTS, ITS and GL, for their acronyms) and to issue opinions and reports to further specify certain aspects of the regulation. In this context, the EBA published its roadmap (EBA Roadmap) at the end of 2023, structuring the implementation of the banking package around four sequential phases, under which the authority will address the various mandates in an orderly manner based on their latest legal application dates (up to four years after the entry into force of CRR 3 and CRD VI). In addition, at the end of 2024, the EBA published its 2025 work programme, setting out the guidelines for addressing these mandates during the year. This has resulted in the publication of various consultations throughout the year on RTS, ITS and Guidelines, such as, for example: – Regulatory Technical Standards (RTS) on off-balance-sheet exposures and unconditionally cancellable commitments – Regulatory Technical Standards (RTS) on material changes to IRB models and model extensions – Revision of the Guidelines on the revised definition of default – Regulatory Technical Standards (RTS) and Implementing Technical Standards (ITS) on operational risk In its 2025 Work Programme, the EBA undertook, among other initiatives, the revision of the SREP Guidelines, the consultation for which was published on 24 October, with the aim of updating them based on three pillars: legislative changes (CRR 3 and CRD VI, IRRBB/CSRBB, DORA, etc.), lessons learned, and structural changes intended to improve the usability of the Guidelines. The consultation period was set to run until early February 2026, and following the conclusion of the consultation process, the Guidelines are expected to enter into force on 1 January 2027. On 28 July 2025, the ECB published a revised version of its Guide to Internal Models, with the objective of reflecting the regulatory changes introduced by CRR 3 in relation to internal models for credit, counterparty credit and market risk; clarifying supervisory expectations for internal models that make use of machine learning; and enhancing transparency and supervisory harmonisation. This revision builds on the experience accumulated by the ECB since the first publication of the Guide in 2019. On 25 July 2025, the ECB also published the final Guide on Options and Discretions, following a consultation process launched in November 2024. The Guide introduces clarifications and adjustments to the treatment of market risk and operational risk, as well as to the conditions under which minority interests may be included in group capital, among other aspects. Annual report 2025640 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Regarding resolution regulation, institutions are required to maintain an adequate funding structure to ensure that, in the event of financial distress, they hold sufficient liabilities to absorb losses and either restore viability or be resolved while safeguarding depositor protection and financial stability. To this end, global systemically important institutions are subject to minimum loss- absorbing capacity requirements, namely Total Loss-Absorbing Capacity (TLAC) and the Minimum Requirement for own funds and Eligible Liabilities (MREL), as regulated under CRR 3 and the Bank Recovery and Resolution Directive (BRRD). On 25 October 2022, a regulation on the prudential treatment of global systemically important institutions was published, amending both the CRR and the BRRD with respect to the prudential treatment of G-SIBs with a multiple point of entry (MPE) resolution strategy, as well as the methods for the indirect subscription of eligible instruments (daisy chains) for the purpose of meeting MREL requirements. This regulation, known as the Resolution 'Quick Fix', pursues two main objectives: • The inclusion in the BRRD and CRR 3 of references to third- country subsidiaries allowing for adjustments to the deduction for holdings of TLAC instruments issued by such subsidiaries, based on excess TLAC/MREL at subsidiary level, as well as adjustments in cases where the aggregate own funds and eligible liabilities requirements of a G-SIB under an MPE strategy exceed the theoretical requirements of the same group under a single point of entry (SPE) strategy. This adjustment is therefore based on a comparison between the two possible resolution strategies. • The introduction of a deduction regime for holdings of MREL instruments through entities within the same resolution group other than the resolution entity. The Regulation establishes a deduction at the level of the intermediate entity within the daisy chain that repurchases the instruments. As a result, the intermediate entity is required to issue an equivalent amount, thereby transferring internal MREL needs to the resolution entity, which will cover them with external MREL. In this context, in 2025 the EBA published the Final Report on the draft Implementing Technical Standards (ITS) on resolution planning, aimed at further harmonising reporting requirements. Regarding Deposit Guarantee Schemes (DGS), these are regulated under the Deposit Guarantee Schemes Directive (DGSD), which has not undergone substantial amendments since its publication in 2014. The Directive aims to harmonise DGS across Member States to ensure stability and consistency across countries. It establishes an appropriate framework to improve depositor access to DGS through a clear scope of coverage, short repayment periods, enhanced information, and robust funding requirements. The Directive has been transposed into Spanish law through Royal Decree 2606/1996, as amended by Royal Decree 1041/2021. To ensure the protection of depositors, DGS collect financial resources through contributions from their members, which must be paid at least annually. These annual contributions are determined based on the number of covered deposits and the risk profile of the institutions affiliated with the DGS. The methodology for calculating contributions is set out in the EBA Guidelines (EBA/ GL/2023/02). In June 2025, the Council and the European Parliament reached a political agreement, which still needs to be finalized at a technical level as a prerequisite for its final formal approval. Within the sustainability field from a prudential perspective, the implementation of the CRR 3/CRD VI package has progressed, introducing specific requirements to integrate environmental, social and governance (ESG) risks into the prudential framework. With the aim of assessing whether a specific prudential treatment is warranted, the CRR establishes three mandates: to assess the availability of ESG risk data; to evaluate the effective risk profile of exposures affected by environmental or social factors; and to analyse the potential effects on financial stability of differentiated prudential treatment, with a view to possible legislative proposals by 31 December 2026. In addition, the CRR 3/CRD VI package introduces disclosure requirements on ESG risks, reporting of ESG risk exposures to competent authorities, and an obligation for institutions to develop specific plans for managing financial risks arising from ESG factors, including those related to transition trends. In this context, the EBA published in January 2025 the Guidelines on the Management of ESG Risks, fulfilling the CRD VI mandate to structurally integrate ESG risks into the European prudential framework. These Guidelines set out minimum standards and reference methodologies for the identification, measurement, management and monitoring of ESG risks, as well as their proper integration into internal governance processes, risk appetite frameworks and strategic planning. The Guidelines also specify minimum requirements for the development of transition plans, which must include metrics, quantifiable targets and time-bound milestones aligned with institutions’ sustainability strategies and prudential requirements. Their application will be mandatory from 11 January 2026, consolidating a prudential framework that strengthens the systematic consideration of ESG risks in supervisory and risk management processes. At the international level, the Basel Committee on Banking Supervision (BCBS) has continued to advance work on ESG-related standards. In June 2025, the Committee published a voluntary framework for the disclosure of climate-related financial risks, aimed at guiding internationally active banks in the provision of qualitative and quantitative information on their exposures to physical and transition risks. The framework acknowledges the still nascent state of climate data availability, consistency and quality, and therefore adopts a flexible approach that allows for the use of different metrics and methodologies. While its adoption will depend on jurisdictional decisions, the Committee considers this framework an important step towards enhancing transparency and international comparability of climate risk disclosures and intends to monitor its implementation with a view to potential future revisions. In the digital field, due to the increase in international crypto assets activities, the EU is moving forward with the integration of Basel standards on crypto-assets through the mandate set out in CRR 3, which will enable the establishment of a harmonised prudential treatment once the legislative process is completed. In fulfilment of the CRR 3 mandate, the EBA has finalised and published the draft Regulatory Technical Standards (RTS) applicable to the calculation of own funds requirements for crypto-asset exposures. Annual report 2025641 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | At 31 December 2025 Grupo Santander met the minimum capital requirements established by current legislation (see note 54.d). Additionally, it should be noted that the Group has filed an appeal with the Court of Justice of the European Union (CJEU) requesting the annulment of a decision by the European Central Bank (ECB) related to the treatment of deferred tax assets generated at Banco Santander Brasil, which, if resolved favourably, would have a positive impact of approximately 20 basis points on the Group's CET1, using the amounts at the end of the year. #### f) Environmental impact In view of the business activities carried on by the Group entities, the Group does not have any environmental liability, expenses, assets, provisions or contingencies that might be material with respect to its consolidated equity, financial position or results (see note 54.a). #### g) Events after the reporting perio d On 9 January 2026, after obtaining the necessary regulatory approvals and fulfilling the conditions for closing, the Group completed the sale of 49% of the share capital of Santander Bank Polska S.A. and 50% of the share capital of Santander Towarzystwo Funduszy Inwestycyjnych S.A. (TFI, the asset management business in Poland) to Erste Group Bank AG for a total cash amount of approximately EUR 7,000 million. The transaction generated a net capital gain of approximately EUR 1,900 million, which will be recognized in the consolidated income statement for the 2026 financial year. Santander holds the 9.7% of Santander Polska's share capital. The transaction resulted in the loss of effective control over the entity, and therefore, effective as of 9 January 2026, Santander Bank Polska S.A. will cease to be consolidated using the global integration method in the Group's consolidated financial statements from that date forward. Additionally, on 3 February 2026, Banco Santander, S.A. ('Santander') announced that it had reached an agreement to acquire Webster Financial Corporation ('Webster'), the parent company of Webster Bank, N.A., for approximately USD 12,200 million (around EUR 10,300 million). Webster shareholders will receive USD 48.75 in cash and 2.0548 Santander shares for each Webster share, resulting in a total consideration of USD 75 per Webster share. Completion of the transaction is expected to take place in the second half of 2026 subject to the customary conditions for this type of operations, including obtaining the relevant regulatory approvals and the approvals of both Webster's and Santander's shareholders. 2. Accounting p #### olicies The accounting policies applied in preparing the consolidated financial statements were as follows: a) #### Foreign currency transactions i. Presentation currency Banco Santander’s functional and presentation currency is the euro. Also, the presentation currency of the Group is the euro. ii. Translation of foreign currency balances Foreign currency balances are translated to euros in two consecutive stages: • Translation of foreign currency to the functional currency (currency of the main economic environment in which the entity operates). • Translation to euros of the balances held in the functional currencies of entities whose functional currency is not the euro. Translation of foreign currency to the functional currency Foreign currency transactions performed by consolidated entities (or entities accounted for using the equity method) not located in European Monetary Union ('EMU') countries are initially recognised in their respective currencies. Monetary items in foreign currency are subsequently translated to their functional currencies using the closing rate. Furthermore: • Non-monetary items measured at historical cost are translated to the functional currency at the exchange rate at the date of acquisition. • Non-monetary items measured at fair value are translated at the exchange rate at the date when the fair value was determined. • Income and expenses are translated at the average exchange rates for the year for all the transactions performed during the year. When applying this criterion, the Group considers whether there have been significant changes in the exchange rates in the year which, in view of their materiality with respect to the consolidated financial statements taken as a whole, would make it necessary to use the exchange rates at the transaction date rather than the aforementioned average exchange rates. • The balances arising from non-hedging forward foreign currency/foreign currency and foreign currency/euro purchase and sale transactions are translated at the closing rates prevailing in the forward foreign currency market for the related maturity. Annual report 2025642 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Translation of functional currencies to euros The balances in the financial statements of consolidated entities (or entities accounted for using the equity method) whose functional currency is not the euro are translated to euros as follows: - Assets and liabilities, at the closing rates. - Income and expenses, at the average exchange rates for the year. - Equity items, at the historical exchange rates. iii. Recognition of exchange differences The exchange differences arising on the translation of foreign currency balances to the functional currency are generally recognised at their net amount under 'Exchange differences, net' in the consolidated income statement, except for exchange differences arising on financial instruments at fair value through profit or loss, which are recognised in the consolidated income statement without distinguishing them from other changes in fair value, and for exchange differences arising on non-monetary items measured at fair value through equity, which are recognised under 'Other comprehensive income–Items that may be reclassified to profit or loss–Exchange differences' except for exchange differences on equity instruments, where the option to irrevocably elect to be measured at fair value through changes in accumulated other comprehensive income, which are recognised in accumulated 'Other Comprehensive Income - Items not to be reclassified to profit or loss - Changes in fair value of equity instruments measured at fair value' through other comprehensive income (see note 29). The exchange differences arising on the translation to euros of the financial statements denominated in functional currencies other than the euro are recognised in 'Other comprehensive income– Items that may be reclassified to profit or loss–Exchange differences' in the consolidated balance sheet, whereas those arising on the translation to euros of the financial statements of entities accounted for using the equity method are recognised in equity under 'Other comprehensive income–Items that may be reclassified to profit or loss and Items not reclassified to profit or loss–Other recognised income and expense' of investments in subsidiaries, joint ventures and associates (see note 29), until the related item is derecognised, at which time they are recognised in profit or loss. Exchange differences arising on actuarial gains or losses when converting to euros the financial statements denominated in the functional currencies of entities whose functional currency is different from the euro are recognised under equity 'Other comprehensive income–Items not reclassified to profit or loss– Actuarial gains or (-) losses' on defined benefit pension plans (see note 29). iv. Entities located in hyperinflationary economies When a subsidiary operates in a country with hyperinflationary economy, IAS 29 Financial Information in Hyperinflationary Economies is applied, which means that: – Historical cost of non-monetary assets and liabilities and of the various items of equity have to be adjusted to reflect the changes in the purchasing power of the currency due to inflation from their date of acquisition or incorporation into the consolidated balance sheet. – The different items of the income statement are adjusted by the inflationary index since their generation, with a balancing entry in 'Other comprehensive income'. – The loss on the net monetary position is recorded in the income for the year against 'Accumulated Other comprehensive income'. – All components of the financial statements of the subsidiary are translated at the closing exchange rate. The deterioration of the economic situation in Argentina over the last years caused, among other impacts, a significant increase in inflation, which by the end of 2018 had reached 48% per year (147% accumulated in three years). This led the Group to conclude that it was necessary to apply IAS 29 Financial Information in Hyperinflationary Economies to its activities in the country in question in its consolidated financial statements from that year on. In 2024, Grupo Santander decided to apply an alternative exchange rate for the conversion of its Argentine business in the preparation of its consolidated annual accounts. This decision stemmed from the divergence observed between the official exchange rate and certain macroeconomic variables, primarily inflation, coupled with the fact that for certain transactions, such as the repatriation of dividends, the exchange rate implied in orderly transactions between market participants did not correspond to the official exchange rate. As of 31 December 2024, the alternative exchange rate used was based on the CCL dollar ('contado con liquidación'), which is the exchange rate resulting from the sale in US dollars of local bonds denominated in Argentine pesos (bonds with dual peso dollar/denomination). At that date, this rate did not differ significantly from other market rates. From the second quarter of 2025, and considering the liberalization of the foreign exchange market and the elimination of restrictions on the purchase of foreign currency by individuals, and the value of this CCL dollar exchange rate did not differ significantly from other market rates and the official exchange rate, Grupo Santander started using the official exchange rate as a reference once again. Inflation during 2025, according to the national consumer price index published by the National Statistics and Census Institute, was 31.5% for the year (117.8% at 31 December 2024). The official exchange rate as 31 December 2025 was 1,706.38 Argentine pesos per euro (1,071.16 Argentine pesos per euro at 31 December 2024). The exchange rate applied by the Group as at 31 December 2024 was 1,232.39 Argentine pesos per euro. Annual report 2025643 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | At 31 December 2025, no other country in which the consolidated and associated entities of Grupo Santander are located is considered to have a hyperinflationary economy in accordance with the criteria established in this regard by the International Financial Reporting Standards adopted by the European Union. v. Exposure to foreign currency risk Grupo Santander hedges a portion of its long-term foreign currency positions using foreign exchange derivative financial instruments (see note 36). Also, the Group manages foreign exchange risk dynamically by hedging its short-term position (with a potential impact on profit or loss) in order to limit the impact of currency depreciations while optimising the cost of financing the hedges. The following tables show the sensitivity of the consolidated income statement and consolidated equity to percentage changes of ± 1% in the foreign exchange rate positions arising from investments in Grupo Santander companies with currencies other than the euro (with its hedges) and in their results (with its hedges), in which the Group maintains significant balances. The estimated effect on the consolidated equity attributable to Grupo Santander and on consolidated profit and loss account of a 1% appreciation of the euro against the corresponding currency is as follows: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | EUR million | | | | | | | | | | Effect on consolidated equity | | | | Effect on consolidated profit | | | | Currency | 2025 | 2024 | 2023 | | 2025 | 2024 | 2023 | | US dollar | (135.0) | (168.4) | (136.9) | | (2.5) | (3.9) | (3.4) | | Chilean peso | (8.8) | (15.3) | (35.3) | | (4.3) | (2.1) | (2.3) | | Pound sterling | (88.1) | (96.5) | (79.1) | | (7.6) | (4.4) | (3.1) | | Mexican peso | (32.5) | (33.9) | (36.4) | | (0.5) | (0.5) | (0.1) | | Brazilian real | (141.2) | (144.1) | (175.7) | | (0.8) | (4.3) | (6.5) | | Polish zloty | (12.8) | (25.1) | (48.8) | | — | (0.4) | — | | Argentine peso | (21.3) | (18.3) | (7.5) | | (3.7) | (6.6) | (4.2) | Similarly, the estimated effect on the Group’s consolidated equity and on consolidated profit and loss account of a 1% depreciation of the euro against the corresponding currency is as follows: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | EUR million | | | | | | | | | | Effect on consolidated equity | | | | Effect on consolidated profit | | | | Currency | 2025 | 2024 | 2023 | | 2025 | 2024 | 2023 | | US dollar | 137.8 | 171.8 | 139.7 | | 2.5 | 4.0 | 3.4 | | Chilean peso | 9.0 | 15.6 | 36.0 | | 4.4 | 2.2 | 2.3 | | Pound sterling | 89.9 | 98.4 | 80.7 | | 7.7 | 4.5 | 3.1 | | Mexican peso | 33.1 | 34.6 | 37.1 | | 0.5 | 0.5 | 0.1 | | Brazilian real | 144.0 | 147.0 | 179.3 | | 0.9 | 4.3 | 6.6 | | Polish zloty | 13.0 | 25.6 | 49.8 | | — | 0.4 | — | | Argentine peso | 21.7 | 18.7 | 7.7 | | 3.8 | 6.7 | 4.2 | The above data were obtained as follows: a)Effect on consolidated equity: in accordance with the accounting policy detailed in note 2.a.iii, foreign exchange rate impact arising on the translation to euros of the financial statements in the functional currencies of the Group entities whose functional currency is not the euro are recognised in consolidated equity. The potential effect that a change in the exchange rates of the related currency would have on the Group’s consolidated equity was therefore determined by applying the aforementioned change to the net value of each unit’s assets and liabilities - including, where appropriate, the related goodwill- and by taking into consideration the offsetting effect of the hedges of net investments in foreign operations. b)Effect on consolidated profit: the effect was determined by applying the up and down movements in the average exchange rates of the year, as indicated in note 2.a.ii (except in the case of Argentina, which is a hyperinflationary economy and has applied the closing exchange rate), to translate to euros the income and expenses of the consolidated entities whose functional currency is not the euro, taking into consideration, where appropriate, the offsetting effect of the various hedging transactions in place. The estimates used to obtain the foregoing data were performed considering the effects of the changes in the exchange rate in standalone basis not considering the effect of the performance of other variables whose changes would affect equity and profit or loss, such as variations in the interest rates of the reference currencies or other market factors. Accordingly, all variables other than the exchange rate variations were kept constant with respect to their positions at 31 December 2025, 2024 and 2023. Annual report 2025644 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | b) #### Basis of consolidation i. Subsidiaries Subsidiaries are defined as entities over which the Bank has the capacity to exercise control. The Bank controls an entity when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. The financial statements of the subsidiaries are fully consolidated with those of the Bank. Accordingly, all balances and effects of the transactions between consolidated companies are eliminated on consolidation. On acquisition of control of a subsidiary, its assets, liabilities and contingent liabilities are recognised at their acquisition-date fair values. Any positive differences between the acquisition cost and the fair values of the identifiable net assets acquired are recognised as goodwill (see note 17). Negative differences are recognised in profit or loss on the date of acquisition. Additionally, the share of third parties of Grupo Santander equity is presented under 'Non-controlling interests' in the consolidated balance sheet (see note 28). Their share of the profit for the year is presented under 'Profit attributable to non-controlling interests' in the consolidated income statement. The results of subsidiaries acquired during the year are included in the consolidated income statement from the date of acquisition to year-end. Similarly, the results of subsidiaries for which control is lost during the year are included in the consolidated income statement from the beginning of the year to the date of disposal. At 31 December 2025, apart from the structured consolidated entities, Grupo Santander does not control any company in which it maintains a percentage of direct participation in its share capital of less than 50% and in where other elements exist which, considered together, would grant give it decision-making power over its relevant activities. The appendices contain significant information on the subsidiaries. ii. Interests in joint ventures Joint ventures are deemed to be entities that are not subsidiaries but which are jointly controlled by two or more unrelated entities. This is evidenced by contractual arrangements whereby two or more parties have interests in entities so that decisions about the relevant activities require the unanimous consent of all the parties sharing control. In the consolidated financial statements, investments in joint ventures are accounted for using the equity method, i.e. at the Group’s share of net assets of the investee, after taking into account the dividends received therefrom and other equity eliminations. The profits and losses resulting from transactions with a joint venture are eliminated to the extent of the Group’s interest therein. The appendices contain relevant information on the joint ventures. iii. Associates Associates are entities over which Banco Santander is in a position to exercise significant influence, but not control or joint control. It is presumed that Banco Santander exercises significant influence if it holds 20% or more of the voting power of the investee. In the consolidated financial statements, investments in associates are accounted for using the equity method, with the same criteria applicable to shares in joint ventures. There are certain investments in entities which, although Grupo Santander owns 20% or more of their voting power, are not considered to be associates because the Group is not in a position to exercise significant influence over them. As of 31 December 2024 and 2023, the investment in Project Quasar Investments 2017, S.L. was in this situation, despite maintaining a 49% stake in the share capital. The rest of the investments are not significant for the Group. There are also certain investments in associates where the Group owns less than 20% of the voting rights, as it is determined that it has the capacity to exercise significant influence over them. The impact of these companies is immaterial in the Group's consolidated financial statements. The appendices contain significant information on the associates. iv. Structured entities In some cases, Grupo Santander incorporates entities, or holds ownership interests therein, to enable its customers to access certain investments, or for the transfer of risks or other purposes. Those entities are called 'structured entities' and they are characterized by the fact that since the voting, or similar power is not a key factor in deciding who controls the entity. The control is determined by using internal criteria and procedures and taking into consideration the applicable legislation, as described above. Specifically, for those entities to which this policy applies (mainly investment funds and pension funds), the Group analyses the following factors: • Percentage of ownership held by Grupo Santander; 20% is established as the general threshold. • Identification of the fund manager, and verification as to whether it is a company controlled by the Group since this could affect Grupo Santander ability to direct the relevant activities. • Existence of agreements between investors that might require decisions to be taken jointly by the investors, rather than by the fund manager. • Existence of currently exercisable removal rights (possibility of removing the manager from his position), since the existence of such rights might limit the manager’s power over the fund, and it may be concluded that the manager is acting as an agent of the investors. • Analysis of the fund manager’s remuneration regime, taking into consideration that a remuneration regime that is proportionate to the service rendered does not, generally, create exposure of such importance as to indicate that the manager is acting as the principal. Conversely, if the remuneration regime is not proportionate to the service rendered, this might give rise to an exposure that would lead the Group to a different conclusion. Annual report 2025645 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | These structured entities also include the securitisation special purpose vehicles, which are consolidated in the case of the Special Purpose Vehicles (SPVs) over which, being exposed to variable yield, it is considered that the Group continues to exercise control. The exposure associated with unconsolidated structured entities, additional to investments in the equity of investment funds (note 8), are not material with respect to the Group’s consolidated financial statements. v. Business combinations A business combination is the bringing together of two or more separate entities or economic units into one single entity or group of entities. Business combinations whereby Grupo Santander obtains control over an entity or a business are recognised for accounting purposes as follows: • Grupo Santander measures the cost of the business combination, which is normally the consideration transferred, defined as the acquisition-date fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity instruments issued, if any, by the acquirer. In cases where the amount of the consideration to be transferred has not been definitively established at the acquisition date, but rather depends on future events, any contingent consideration is recognised as part of the consideration transferred and measured at its acquisition-date fair value. Moreover, acquisition-related costs do not for these purposes form part of the cost of the business combination. • The fair values of the assets, liabilities and contingent liabilities of the acquired entity or business, including any intangible assets identified in the business combination which might not have been recognised by the acquiree, are estimated and recognised in the consolidated balance sheet; the Group also estimates the amount of any non-controlling interests and the fair value of the previously held equity interest in the acquiree. • Any positive difference between the aforementioned items is recognised as discussed in note 2.m. Any negative difference is recognised under 'Negative Goodwill' recognised in the consolidated income statement. Goodwill is only calculated and recognised once, when control of a business or an entity is obtained. vi. Changes in the levels of ownership interests in #### subsidiaries Acquisitions and disposals not giving rise to a change in control are recognised as equity transactions, and no gain or loss is recognised in the income statement and the initially recognised goodwill is not remeasured. The difference between the consideration transferred or received and the decrease or increase in non-controlling interests, respectively, is recognised in reserves. Similarly, when control over a subsidiary is lost, the assets, liabilities and non-controlling interests and any other items recognised in 'Other Comprehensive income' of that company are derecognised from the consolidated balance sheet, and the fair value of the consideration received and of any remaining equity interest is recognised. The difference between these amounts is recognised in profit or loss. c) C #### lassification of financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or an equity instrument of another entity. The following transactions are not treated for accounting purposes as financial instruments: • Investments in associates and joint venture when accounted for using the equity method in accordance with IAS 28 (see note 13). • Rights and obligations under employee benefit plans recognized in accordance with IAS 19 (see note 25). • Insurance contracts and the rights and obligations directly arising from them, within the scope of IFRS 17 (see note 15). • Contracts and obligations relating to employee remuneration based on own equity instruments accounted for in accordance with IFRS 2 (see note 34). i. Classification of financial assets for measurement #### purposes Financial assets are classified into the various categories used for management and measurement purposes, unless they have to be presented as 'Non-current assets held for sale' or they relate to 'Cash, cash balances at central banks and other deposits on demand', 'Changes in the fair value of hedged items in portfolio hedges of interest rate risk (asset side)', 'Hedging derivatives and Investments', which are reported separately. Classification of financial instruments: the classification criteria for financial assets depends on the business model for their management and the characteristics of their contractual flows. Grupo Santander business models refer to the way in which it manages its financial assets to generate cash flows. In defining these models, the Group takes into account the following factors: • How key entity staff are assessed and reported on the performance of the business model and the financial assets held in the business model. • The risks that affect the performance of the business model (and the financial assets held in the business model) and, specifically, the way in which these risks are managed. • The way in which business managers are remunerated. • The frequency, the calendar and volume of sales in previous years, as well as expectations of future sales and the reasons of the sales. Annual report 2025646 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The analysis of the characteristics of the contractual cash flows of financial assets requires an assessment of the congruence of these flows with a basic loan agreement. The Group determines if the contractual cash flows of its financial assets that are only principal and interest payments on the outstanding principal amount at the beginning of the transaction. This analysis takes into consideration four factors (performance, contractual clauses, contractually linked products and currencies). Furthermore, among the most significant judgements used by the Group in carrying out this analysis, the following ones are included: • The return on the financial asset, in particular in cases of periodic interest rate adjustments where the term of the reference rate does not coincide with the frequency of the adjustment. In these cases, an assessment is made to determine whether or not the contractual cash flows differ significantly from the flows without this change in the time value of money, establishing a tolerance level of 5%. • When contractual clauses that may modify the cash flows of the financial asset exist, the structure of the cash flows before and after the activation of such clauses is analysed, regardless of the probability of occurrence of the contingent event. The evaluation of contractual flows of financial assets with characteristics associated with ESG (Environmental, Social and Governance) is included in this analysis. • Financial assets whose cash flows have different priority for payment due to a contractual link to underlying assets (e.g. securitization instruments or similar structures) require a look- through analysis by the Group so as to review that both the financial asset and the underlying assets are only principal and interest payments and that the exposure to credit risk of analyzed segment does not exceed the average exposure of the underlying assets of the instrument. Depending on these factors, the financial assets classify for measurement as: (i) at amortised cost, (ii) at fair value with changes in other comprehensive income or (iii) at fair value with changes through profit and loss. IFRS 9 also establishes an option to irrevocably designate an instrument at fair value with changes in profit or loss, when doing so eliminates or significantly reduces a measurement or recognition inconsistency (sometimes referred to as 'accounting asymmetry') that would otherwise arise from measuring assets or liabilities or recognising gains and losses on different bases. Grupo Santander uses the following criteria for the classification of the financial debt instruments: • Amortised cost: financial instruments managed under a business model whose objective is to hold the financial assets to collect contractual principal and interest flows. This category includes instruments for which there are no frequent or significant unjustified sales and fair value is not a key element in the management of these assets and contractual conditions they give rise to cash flows on specific dates, which are only payments of principal and interest on the outstanding principal amount. In this sense, justified sales are considered to be those related to an (i) increase in the credit risk of the asset, (ii) unanticipated funding needs (stress case scenarios) and (iii) those close to maturity . Additionally, the characteristics of its contractual flows represent substantially a 'basic financing agreement'. • Fair value with changes in other comprehensive income: financial instruments held in a business model whose objective is to collect principal and interest cash flows and the sale of these assets, where fair value is a relevant factor in their management. Additionally, the contractual cash flow characteristics substantially represent a 'basic financing agreement'. • Fair value with changes in profit or loss: financial instruments included in a business model different from the above, where fair value is a key element in the management of these assets, and the contractual flows of the financial instruments do not substantially represent a 'basic financing agreement'. In this section it can be enclosed the portfolios classified under 'Financial assets held for trading', 'Non-trading financial assets mandatorily at fair value through profit or loss' and 'Financial assets at fair value through profit or loss'. In this regard, most of the financial assets presented in the category of 'Financial assets designated at value reasonable with change in results' are instruments financial services that, not being part of the portfolio of negotiation, are contracted jointly with other financial instruments that are recorded in the category of 'held for trading', and that by both are recorded at fair value with changes in results, so your record in any other category would produce accounting asymmetries. Equity instruments will be classified at fair value under IFRS 9, with changes in profit or loss, unless the Group decides, for non- trading assets, to classify them at fair value with changes in other comprehensive income (irrevocably) at initial recognition. ii. Classification of financial assets for presentation #### purposes Financial assets are classified by nature into the following items in the consolidated balance sheet: • Cash, cash balances at Central Banks and other deposits on demand: cash balances and balances receivable on demand relating to deposits with central banks and other credit institutions. • Loans and advances: includes the debit balances of all credit and loans granted by the Group, other than those represented by securities or securitized, as well as the finance lease receivables and other debit balances of a financial nature in favour of the Group such as cheques drawn on credit institutions, balances receivable from clearing houses and settlement agencies for transactions on the stock exchange and organised markets, bonds given in cash, capital calls, fees and commissions receivable for financial guarantees and debit balances arising from transactions not originating in banking transactions and services, such as the collection of rentals and similar items. They are classified, on the basis of the institutional sector to which the debtor belongs, into: – Central banks: credit of any nature, including deposits and money market transactions received from the Bank of Spain or other central banks. – Credit institutions: credit of any nature, including deposits and money market transactions, in the name of credit institutions. – Customers: includes the remaining credit, including money market transactions through central counterparties. Annual report 2025647 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | • Debt securities: bonds and other securities that represent a debt for their issuer, that that accrue interest or equivalent returns implemented in securities or in book entries. • Equity instruments: financial instruments issued by other entities, such as shares, which have the nature of equity instruments for the issuer, other than investments in subsidiaries, joint ventures or associates. Investment fund units are included in this item. • Derivatives: includes the fair value in favour of the Group of derivatives which do not form part of hedge accounting, including embedded derivatives separated from hybrid financial instruments. • Repurchase agreements and reverse repurchase agreements: Purchases of financial instruments under a non-optional resale (repurchase) agreement at a fixed price (repos) are recognised in the consolidated balance sheet as financing granted, based on the nature of the debtor, under 'Loans and advances with central banks', 'Loans and advances to credit institutions' or 'Loans and advances to customers. Differences between the purchase and sale prices are recognised as interest over the contract term. • Changes in the fair value of hedged items in portfolio hedges of interest rate risk: this item is the balancing entry for the amounts credited to the consolidated income statement in respect of the measurement of the portfolios of financial instruments which are effectively hedged against interest rate risk through fair value hedging derivatives. • Hedging derivatives: Includes the fair value in favour of the Group of derivatives, including embedded derivatives separated from hybrid financial instruments, designated as hedging instruments in hedge accounting. iii. Classification of financial liabilities for measurement #### purposes Financial liabilities are initially classified into the various categories used for management and measurement purposes, unless they have to be presented as 'Liabilities associated with non-current assets held for sale' or they relate to 'Hedging derivatives' or the changes in the fair value of hedged items in portfolio hedges of interest rate risk (liability side), which are reported separately. In most cases, changes in the fair value of financial liabilities designated at fair value through profit or loss, caused by the entity's credit risk, are recognized in other comprehensive income, unless this treatment results in an accounting asymmetry, in which case the full effect is recognized in the profit or loss for the period. Financial liabilities are included for measurement purposes in one of the following categories: • Financial liabilities held for trading (at fair value through profit or loss): this category includes financial liabilities incurred for the purpose of generating a profit in the near term from fluctuations in their prices, financial derivatives not designated in accounting hedging relationships, and financial liabilities arising from the outright sale of financial assets temporarily acquired or received on loan (short positions). • Financial liabilities designated at fair value through profit or loss: financial liabilities are included in this category when they provide more relevant information, either because this eliminates or significantly reduces recognition or measurement inconsistencies (accounting mismatches) that would otherwise arise from measuring assets or liabilities or recognising the gains or losses on them on different bases, or because a group of financial liabilities or financial assets and liabilities is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, and information about the group is provided on that basis to the Group’s key management personnel. Liabilities may only be included in this category on the date when they are incurred or originated. • Financial liabilities at amortised cost: financial liabilities, irrespective of their instrumentation and maturity, not included in any of the above-mentioned categories which arise from the ordinary borrowing activities carried on by financial institutions. iv. Classification of financial liabilities for presentation #### purposes Financial liabilities are classified by nature into the following items in the consolidated balance sheet: • Deposits: includes all repayable balances received in cash by Grupo Santander, other than those instrumented as marketable securities and those having the substance of subordinated liabilities (amount of the loans received, which for credit priority purposes are after common creditors), except for the debt instruments issued. This item also includes cash bonds and cash consignments received the amount of which may be invested without restriction. Deposits are classified on the basis of the creditor’s institutional sector into: – Central banks: deposits of any nature, including credit received and money market transactions received from the Bank of Spain or other central banks. – Credit institutions: deposits of any nature, including credit received and money market transactions in the name of credit institutions. – Customer: includes the remaining deposits, including money market transactions through central counterparties. • Marketable debt securities: includes the amount of bonds, debentures and other debt represented by marketable securities, other than those having the substance of subordinated liabilities (amount of the loans received, which for credit priority purposes are after common creditors, and includes the amount of the financial instruments issued by the Group which, having the legal nature of capital, do not meet the requirements to qualify as equity, such as certain preferred shares issued). This item includes the component that has the consideration of financial liability of the securities issued that are compound financial instruments. • Derivatives: includes the fair value, with a negative balance for the Group, of derivatives, including embedded derivatives separated from the host contract, which do not form part of hedge accounting. Annual report 2025648 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | • Short positions: includes the amount of financial liabilities arising from the outright sale of financial assets acquired under reverse repurchase agreements or borrowed. • Other financial liabilities: includes the amount of payment obligations having the nature of financial liabilities not included in other items (includes, among others, the balance of lease liabilities recognized in accordance with IFRS 16 ), and liabilities under financial guarantee contracts, unless they have been classified as non-performing. • Repurchase agreements and reverse repurchase agreements: Sales of financial instruments under a non-optional resale (repurchase) agreement at a fixed price (repos) are recognised in the consolidated balance sheet as financing received, based on the nature of the creditor, under 'Deposits from central banks', 'Deposits from credit institutions' or 'Customer deposits'. Differences between the purchase and sale prices is recorded as interest accrued over the life of the contract, using the effective interest rate method. • Changes in the fair value of hedged items in portfolio hedges of interest rate risk: this item is the balancing entry for the amounts charged to the consolidated income statement in respect of the measurement of the portfolios of financial instruments which are effectively hedged against interest rate risk through fair value hedging derivatives. • Hedging derivatives: includes the fair value of the Group’s liability in respect of derivatives, including embedded derivatives separated from hybrid financial instruments, designated as hedging instruments in hedge accounting. • The preference shares contingently convertible into ordinary shares eligible as Additional Tier 1 capital (PPCC) -perpetual shares, which may be repurchased by the issuer in certain circumstances, the interest on which is discretionary, and would convert into variable number of newly issued ordinary shares if the capital ratio of the Bank or its consolidated group falls below a given percentage (trigger event), as those two terms are defined in the related issue prospectuses are recognised for accounting purposes by the Group as compound instruments in accordance with IAS 32. The liability component reflects the issuer’s obligation to deliver a variable number of shares and the equity component reflects the issuer’s discretion in relation to the payment of the related coupons. In order to effect the initial allocation, the Group estimates the fair value of the liability as the amount that would have to be delivered if the trigger event were to occur immediately and, accordingly, the equity component, calculated as the residual amount, is zero. In view of the aforementioned discretionary nature of the payment of the coupons, they are deducted directly from equity. • Capital perpetual preference shares (PPCA), with the possibility of purchase by the issuer in certain circumstances, whose remuneration is discretionary, and which will be amortised permanently, totally or partially, in the event that the bank or its consolidated group submits a capital ratio lesser than a certain percentage (trigger event), as defined in the corresponding prospectuses, are accounted for by the Group as equity instruments. • Derivatives embedded in other financial instruments or in other host contracts are accounted for separately as derivatives if their risks and characteristics are not closely related to those of the host contracts, provided that the host contracts are not classified as financial assets/liabilities designated at fair value through profit or loss or as 'Financial assets/liabilities held for trading'. d) Measurement of financial assets and liabilities and recognition of fair value changes In general, financial assets and liabilities are initially recognised at fair value which, in the absence of evidence to the contrary, is deemed to be the transaction price. In this regard, IFRS 9 states that regular way purchases or sales of financial assets shall be recognised and derecognised on the trade date or on the settlement date. Grupo Santander has opted to make such recognition on the trading date or settlement date, depending on the convention of each of the markets in which the transactions are carried out. For example, in relation to the purchase or sale of debt securities or equity instruments traded in the Spanish market, securities market regulations stipulate their effective transfer at the time of settlement and, therefore, the same time has been established for the accounting record to be made. The fair value of instruments not measured at fair value through profit and loss is adjusted by transaction costs. Subsequently, and on the occasion of each accounting close, they are valued in accordance with the following criteria: i. #### Measurement of financial assets Financial assets are measured at fair value are valued mainly at their fair value without deducting any transaction cost for their sale. The fair value of a financial instrument on a given date is taken to be the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The most objective and common reference for the fair value of a financial instrument is the price that would be paid for it on an active, transparent and deep market (quoted price or market price). At 31 December 2025 , there were no significant investments in quoted financial instruments that had ceased to be recognised at their quoted price because their market could not be deemed to be active. If there is no market price for a given financial instrument, its fair value is estimated on the basis of the price established in recent transactions involving similar instruments and, in the absence thereof, of valuation techniques commonly used by the international financial community, taking into account the specific features of the instrument to be measured and, particularly, the various types of risk associated with it. Annual report 2025649 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | All derivatives are recognised in the balance sheet at fair value from the trade date. If the fair value is positive, they are recognised as an asset and if the fair value is negative, they are recognised as a liability. The fair value on the trade date is deemed, in the absence of evidence to the contrary, to be the transaction price. The changes in the fair value of derivatives from the trade date are recorded in the consolidated income statement. Specifically, the fair value of financial derivatives traded in organised markets included in the portfolios of financial assets or liabilities held for trading is deemed to be their daily quoted price and if, for exceptional reasons, the quoted price cannot be determined on a given date, these financial derivatives are measured using methods similar to those used to measure derivatives. The fair value of derivatives is taken to be the sum of the future cash flows arising from the instrument, discounted to present value at the date of measurement (present value or theoretical close) using valuation techniques commonly used by the financial markets: net present value, option pricing models and other methods. The amount of debt securities and loans and advances under a business model whose objective is to collect the principal and interest flows are valued at their amortised cost, as long as they comply with the 'SPPI' (Solely Payments of Principal and Interest) test, using the effective interest rate method in their determination. Amortised cost refers to the acquisition cost of a corrected financial asset or liability (more or less, as the case may be) for repayments of principal and the part systematically charged to the consolidated income statement of the difference between the initial cost and the corresponding reimbursement value at expiration. In the case of financial assets, the amortised cost includes, in addition, the corrections to their value due to the impairment. In the loans and advances covered in fair value hedging transactions, the changes that occur in their fair value related to the risk or the risks covered in these hedging transactions are recorded. The effective interest rate is the discount rate that exactly matches the carrying amount of a financial instrument to all its estimated cash flows of all kinds over its remaining life. For fixed rate financial instruments, the effective interest rate coincides with the contractual interest rate established on the acquisition date plus, where applicable, the fees and transaction costs that, because of their nature, form part of their financial return. In the case of floating rate financial instruments, the effective interest rate coincides with the rate of return prevailing in all connections until the next benchmark interest reset date. Equity instruments and contracts related with these instruments are measured at fair value. However, in certain circumstances the Group estimates cost value as a suitable estimate of the fair value. This can happen if the recent event available information is not enough to measure the fair value or if there is a broad range of possible measures and the cost value represents the best estimates of fair value within this range. The amounts at which the financial assets are recognised represent, in all material respects, the Group’s maximum exposure to credit risk at each reporting date. Also, Grupo Santander has received collateral and other credit enhancements to mitigate its exposure to credit risk, which consist mainly of mortgage guarantees, cash collateral, equity instruments and personal security, assets leased out under finance lease and full-service lease agreements, assets acquired under repurchase agreements, securities loans and credit derivatives. ii. #### Measurement of financial liabilities In general, financial liabilities are measured at amortised cost, as defined above, except for those included under 'Financial liabilities held for trading' and 'Financial liabilities designated at fair value through profit or loss' and financial liabilities designated as hedged items (or hedging instruments) in fair value hedges, which are measured at fair value. The changes in credit risk arising from financial liabilities designated at fair value through profit or loss are recognised in accumulated other comprehensive income, unless they generate or increase an accounting mismatch, in which case changes in the fair value of the financial liability in all respects are recognised in the income statement. #### iii. #### Valuation techniques The financial instruments at fair value determined on the basis of published price quotations in active markets (level 1) include government debt securities, private-sector debt securities, derivatives traded in organised markets, securitised assets, shares, short positions and fixed-income securities issued. In cases where price quotations cannot be observed, management makes its best estimate of the price that the market would set, using its own internal models, described in note 50. In most cases, these internal models use data based on observable market parameters as significant inputs (level 2) and, in cases, they use significant inputs not observable in market data (level 3). In order to make these estimates, various techniques are employed, including the extrapolation of observable market data. The best evidence of the fair value of a financial instrument on initial recognition is the transaction price, unless the fair value of the instrument can be obtained from other market transactions performed with the same or similar instruments or can be measured by using a valuation technique in which the variables used include only observable market data, mainly interest rates. iv. Recognition of fair value changes As a general rule, changes in the carrying amount of financial assets and liabilities are recognised in the consolidated income statement. A distinction is made between the changes resulting from the accrual of interest and similar items, (which are recognised under Interest income or Interest expense, as appropriate), and those arising for other reasons, which are recognised at their net amount under 'Gains/losses on financial assets and liabilities'. Adjustments due to changes in fair value arising from: Annual report 2025650 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | • 'Financial assets at fair value with changes in other comprehensive income' are recorded temporarily, in the case of debt instruments in 'Other comprehensive income - Elements that can be reclassified to profit or loss - Financial assets at fair value with changes in other comprehensive income', while in the case of equity instruments are recorded in 'other comprehensive income - Elements that will not be reclassified to line item - Changes in the fair value of equity instruments valued at fair value with changes in other comprehensive income'. Exchange differences on debt instruments measured at fair value with changes in other comprehensive income are recognised under 'Exchange Differences, net' of the consolidated income statement. Exchange differences on equity instruments, in which the irrevocable option of being measured at fair value with changes in other comprehensive income has been chosen, are recognised in 'Other comprehensive income - Items that will not be reclassified to profit or loss - Changes in the fair value of equity instruments measured at fair value with changes in other comprehensive income'. • Items charged or credited to 'Items that may be reclassified to profit or loss – Financial assets at fair value through other comprehensive income' and 'Other comprehensive income – Items that may be reclassified to profit or loss – Exchange differences in equity' remain in the Group's consolidated equity until the asset giving rise to them is impaired or derecognised, at which time they are recognised in the consolidated income statement. • Unrealized capital gains on financial assets at fair value through other comprehensive income classified as 'Non-current assets held for sale' because they form part of a disposal group or a discontinued operation that  are recorded in the equity balancing entry 'Other accumulated comprehensive income - Items that can be reclassified in income - Non-current assets as held for sale. v. Hedging transactions The objective of hedge accounting is to represent in the financial statements the effect of an entity's risk management activities when it uses financial instruments to manage exposures arising from specific risks that could affect profit or loss or other comprehensive income (in the case of investments in equity instruments for which the entity has opted to represent changes in the fair value of other comprehensive income). As described in Note 1.b, the Group has adopted IFRS 9 for hedge accounting prospectively, while continuing to apply IAS 39 for fair value hedges in portfolios where the hedged risk is interest rate risk. This change has not resulted in any modifications to the accounting treatment of hedges designated under IAS 39, which remain unchanged in both their designation and accounting treatment. For a hedging relationship to meet the requirements set out in IFRS 9, it must meet the following conditions: 1.Instruments that can be designated as hedging instruments include all derivative financial instruments or non-derivative financial instruments measured at fair value through profit or loss, or a combination thereof. In the case of foreign exchange risk hedges, any type of non-derivative financial instrument can also be designated, regardless of its measurement method. 2. Items that can be designated as covered items are all those that are recognized assets or liabilities, firm commitments, highly probable anticipated transactions, and net investments abroad. 3.At the start of coverage, a formal designation and documentation of the hedging relationship must be made, which will include the entity's risk management strategy and objective, identification of the hedging instrument and the covered item, the nature of the covered risk, the methodology for measuring effectiveness, which includes an analysis of the sources of ineffectiveness, and the coverage ratio. The main sources of ineffectiveness based on the risk covered are: a. Interest rate risk: mismatches in time horizons, principal, repricing and payment dates, time value of options, modifications in the hedged item or the hedging instrument. b. Exchange rate risk: in addition to the above, the difference between the interest rates of the two currencies that represents the net cost or benefit of switching cash flows between two currencies with different interest rates. 4. The hedging relationship must be effective, for which there must be an economic relationship between the hedged item and the hedging instrument, credit risk must not have a dominant effect on changes in the value of the economic relationship between the hedging instrument and the hedged item, and the hedging ratio must coincide with that used by the entity in its management. The Group assesses these effectiveness requirements, at the time of designation and on each submission date, through: • The economic relationship between the hedged item and the hedging instrument is demonstrated through a qualitative test, and in the event of non-compliance, through quantitative tests that compare the market value of the hedged items— corresponding to the hedged risk—and the hedging instruments. Likewise, a quantitative analysis of variations in the market values of the hedging instrument and the hedged item is performed prospectively. • The hedge ratio is determined based on the proportion between the amount of the hedged item and the amount of the instrument actually designated by the Group in each hedging relationship. • The credit risk domain assessment is performed through an analysis of the credit exposure of the hedged items and the hedging instruments. Annual report 2025651 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Accounting hedges are classified and recorded according to the type of risk they cover, based on the following criteria: • Fair value hedges: These are hedges against exposure to changes in the fair value of the hedged item, attributable to a specific risk. The differences arising from both the hedging instruments and the hedged items (due to the hedged risk) are recognized directly in the consolidated profit and loss account. When the fair value hedge is discontinued, the adjustments previously recorded in the hedged item are charged to profit or loss using the effective interest rate method recalculated at the date the hedge ceases to be covered, and must be fully amortized at maturity. In fair value hedges of interest rate risk of a portfolio of financial instruments (macro hedges), regulated by IAS 39, the gains or losses arising from the valuation of the hedging instruments are recognized directly in the consolidated profit and loss account, while the gains or losses due to changes in the fair value of the hedged amount (attributable to the hedged risk) are recognized in the consolidated profit and loss account using as a counterpart the headings 'Changes in the fair value of hedged items' of a portfolio with interest rate risk hedge (asset or liability), as appropriate. • Cash flow hedges: These are hedges against exposure to changes in cash flows attributable to a specific risk associated with the hedged item. The effective portion of the change in the value of the hedging instrument is temporarily recorded in the equity account 'Other accumulated comprehensive income - Items that may be reclassified in profit or loss - Hedging derivatives. Cash flow hedges (effective portion)' until the hedged item affects profit or loss. From that point onward, it will be recorded in the consolidated profit or loss account for the same period as the hedged item, except in cases where it is required to be included in the cost of the non-financial asset or liability, or the anticipated transactions are ultimately recognized as non- financial assets or liabilities. When cash flow hedges are discontinued, the accumulated result of the hedging instrument recognized in the equity heading 'Other accumulated global result' (while the hedge was effective) will continue to be recognized in that heading until the hedged transaction occurs, at which time it will be recorded in profit or loss, unless it is expected that the transaction will not take place, in which case it is recorded immediately in profit or loss. • Net investment hedges of a foreign operation: This is a hedge of the amount corresponding to the reporting entity's share of the net assets of said operation. The effective portion of the hedging instrument is temporarily recorded in the equity account 'Other accumulated comprehensive income - Items that may be reclassified in profit or loss - Net investment hedges' in foreign operations until the gains or losses on the hedged item are recognized in profit or loss. To measure ineffectiveness, the Group compares the valuation of the hedging instrument with the valuation of the hedged item based on the hedged risk, using different methodologies such as the proxy method or the hypothetical derivative method. The ineffective portion of the cash flow and net investment hedge relationships in foreign operations is recorded directly in the consolidated profit and loss account, under the heading 'Net gains or losses from hedge accounting'. The Group discontinues accounting for hedging relationships when the hedging instrument expires, is sold, or when the hedging relationship becomes ineffective because it is no longer aligned with the risk management objective. In that case, the derivative is then treated as a trading derivative. If a hedging relationship ceases to meet the effectiveness requirements, but the risk management objective remains, the Group will assess whether to rebalance or adjust the hedging ratio to meet the effectiveness requirements again without discontinuing the hedging relationship. A hedging instrument is generally designated in its entirety, as the factors contributing to its fair value are interdependent. However, IFRS 9 allows certain parts of a hedging instrument to be excluded from its fair value: a. Separating the intrinsic value and the time value of an option and designating only the intrinsic element as the hedging instrument, which is mandatory if the intrinsic value is designated; b. Separating the forward and spot elements of a forward contract and designating only the spot element as the hedging instrument, which will be determined for each hedging relationship. and c. Separate the foreign currency basis spread of a currency derivative and exclude it from the designation of the hedging instrument, as determined for each hedging relationship. Separating these components will improve the effectiveness of the hedge and allows for alternative accounting treatment for the excluded component. This treatment consists of recording the changes in value under the heading 'Other accumulated comprehensive income – Undesignated items' and recording this component in the consolidated profit or loss statement, depending on the nature of the hedged item, either over a period of time or at the time the hedged transaction occurs. Additionally, if the entity manages the credit risk of all or part of a financial instrument through the use of credit derivatives, there is the option of designating a fair value credit exposure through profit or loss, provided that the derivative matches the name and priority of the financial instrument being hedged. This designation may be made at the initial recognition of the designated financial instrument or subsequently, with the designation being documented. From its designation, fair value variations (for all its risks, not exclusively credit risk) will be recorded in the consolidated profit and loss account. Annual report 2025652 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | e) #### Derecognition of financial assets and liabilities The accounting treatment of transfers of financial assets depends on the extent to which the risks and rewards associated with the transferred assets are transferred to third parties: 1.If the Group transfers substantially all the risks and rewards to third parties unconditional -sale of financial assets, sale of financial assets under an agreement to repurchase them at their fair value at the date of repurchase, sale of financial assets with a purchased call option or written put option that is deeply out of the money, securitisation of assets in which the transferor does not retain a subordinated debt or grant any credit enhancement to the new holders, and other similar cases-, the transferred financial asset is derecognised and any rights or obligations retained or created in the transfer are recognised simultaneously. 2.If the Group retains substantially all the risks and rewards associated with the transferred financial asset -sale of financial assets under an agreement to repurchase them at a fixed price or at the sale price plus interest, a securities lending agreement in which the borrower undertakes to return the same or similar assets, and other similar cases-, the transferred financial asset is not derecognised and continues to be measured by the same criteria as those used before the transfer. In this case, the following items are recognised: a. An associated financial liability, which is recognised for an amount equal to the consideration received and is subsequently measured at amortised cost, unless it meets the requirements for classification under 'Financial liabilities designated at fair value through profit or loss'. b. The income from the transferred financial asset not derecognised and any expense incurred on the new financial liability, without offsetting. 3.If the Group neither transfers nor retains substantially all the risks and rewards associated with the transferred financial asset -sale of financial assets with a purchased call option or written put option that is not deeply in or out of the money, securitisation of assets in which the transferor retains a subordinated debt or other type of credit enhancement for a portion of the transferred asset, and other similar cases- the following distinction is made: a. If the transferor does not retain control of the transferred financial asset, the asset is derecognised and any rights or obligations retained or created in the transfer are recognised. b. If the transferor retains control of the transferred financial asset, it continues to recognise it for an amount equal to its exposure to changes in value and recognises a financial liability associated with the transferred financial asset. The net carrying amount of the transferred asset and the associated liability is the amortised cost of the rights and obligations retained, if the transferred asset is measured at amortised cost, or the fair value of the rights and obligations retained, if the transferred asset is measured at fair value. Accordingly, financial assets are only derecognised when the rights to the cash flows they generate have expired or when substantially all the inherent risks and rewards have been transferred to third parties. Similarly, financial liabilities are only derecognised when the obligations they generate have been extinguished or when they are acquired with the intention either to cancel them or to resell them. Regarding contractual modifications of financial assets, Grupo Santander distinguishes two main categories depending on whether the new conditions result in the disposal of the asset (and recognition of a new one) or imply the continuation of the original instrument with the new modified terms: • Contractual modifications for commercial or market reasons, which are generally carried out at the request of the debtor to apply current market conditions to the debt. The new contract is considered a new transaction and, consequently, it is necessary to derecognize the original financial asset and recognize a new financial asset subject to the classification and measurement requirements established by IFRS 9. The new financial asset will be recorded at fair value and, if applicable, the difference between the carrying amount of the asset derecognized and the fair value of the new asset will be recognized in profit or loss. • Modifications due to refinancing or restructuring, in which the payment conditions are modified to allow a customer that is experiencing financial difficulties (current or foreseeable) to meet its payment obligations and that, if such modification had not been made, it would be reasonably certain that it would not be able to meet such payment obligations. In this case, the modification does not result in the derecognition of the financial asset, but rather the original financial asset is maintained and does not require a new assessment of its classification and measurement. When assessing credit impairment, the current credit risk (considering the modified cash flows) should be compared with the credit risk at initial recognition. The gross carrying amount of the financial asset (the present value of the renegotiated or modified contractual cash flows that are discounted at the original effective interest rate of the financial asset) should be recalculated, with a gain or loss recognized in profit or loss for the difference. f) #### Offsetting of financial instruments Financial asset and liability balances are offset, i.e. reported in the consolidated balance sheet at their net amount, only if the Group entities currently have a legally enforceable right to set off the recognised amounts and intend either to settle on a net basis, or to realise the asset and settle the liability simultaneously. g) #### Impairment of financial assets i. Definition Grupo Santander associates an impairment in the value to financial assets measured at amortised cost, debt instruments measured at fair value with changes in other comprehensive income, lease receivables, assets from contracts and loan commitments and the financial guarantees issued that are not measured at fair value through profit or loss. Annual report 2025653 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The impairment for expected credit losses is recorded with a charge to the consolidated income statement for the period in which the impairment arises. In the event of occurrence, the recoveries of previously recognised impairment losses are recorded in the consolidated income statement for the period in which the impairment no longer exists or is reduced. In the case of purchased or originated credit-impaired assets, the Group only recognizes at the reporting date the changes in the expected credit losses during the life of the asset since the initial recognition as a credit loss. In the case of assets measured at fair value with changes in other comprehensive income, the changes in the fair value due to expected credit losses are charged in the consolidated income statement of the year where the change happened, reflecting the rest of the valuation in other comprehensive income. As a rule, the expected credit loss is estimated as the difference between the contractual cash flows to be recovered and the expected cash flows discounted using the original effective interest rate. In the case of purchased or originated credit-impaired assets, this difference is discounted using the effective interest rate adjusted by credit rating. Depending on the classification of financial instruments, which is mentioned in the following sections, the expected credit losses may be along 12 months or during the life of the financial instrument: • 12-month expected credit losses: arising from the potential default events, as defined in the following sections that are estimated to be likely to occur within the 12 months following the reporting date. These losses will be associated with financial assets classified as 'normal risk' as defined in the following sections. • Expected credit losses over the life of the financial instrument: arising from the potential default events that are estimated to be likely to occur throughout the life of the financial instruments. These losses are associated with financial assets classified as 'normal risk under watchlist' or 'doubtful risk'. With the purpose of estimating the expected life of the financial instrument all the contractual terms have been taken into account (e.g. prepayments, duration, purchase options, etc.), being the contractual period (including extension options) the maximum period considered to measure the expected credit losses. In the case of financial instruments with an uncertain maturity period and a component of undrawn commitment (e.g.: credit cards), the expected life is estimated through quantitative analyses to determine the period during which the entity is exposed to credit risk, also considering the effectiveness of management procedures that mitigate such exposure (e.g. the ability to unilaterally cancel such financial instruments, etc.). The following constitute effective guarantees: a)Mortgage guarantees on housing as long as they are first duly constituted and registered in favour of the entity. The properties include: i. Buildings and building elements, distinguishing among: – Houses. – Offices, stores and multi-purpose premises. – Rest of buildings such as non-multi-purpose premises and hotels. ii. Urban and developable ordered land. iii. Rest of properties that classify as: buildings and building elements under construction, such as property development in progress and halted development, and the rest of land types, such as rustic lands. b)Collateral guarantees on financial instruments in the form of cash deposits, debt securities or equity instruments issued by creditworthy issuers. c)Other types of real guarantees, including properties received in guarantee and second and subsequent mortgages on properties, as long as the entity demonstrates its effectiveness. When assessing the effectiveness of the second and subsequent mortgages on properties the entity will implement particularly restrictive criteria. It will take into account, among others, whether the previous charges are in favour of the entity itself or not and the relationship between the risk guaranteed by them and the property value. d)Personal guarantees, as well as the incorporation of new owners, covering the entire amount of the financial instruments and implying direct and joint liability to the entity of persons or other entities whose solvency is sufficiently proven to ensure the repayment of the loan on the agreed terms. The different aspects that the Group considers for the evaluation of effective guarantees are set out below in relation to the individual analysis. ii. Financial instruments presentation For the purposes of estimating the impairment amount, and in accordance with its internal policies, the Group classifies its financial instruments (financial assets, commitments and guarantees) measured at amortised cost or fair value through other comprehensive income in one of the following categories: • Normal Risk ('stage 1'): includes all instruments that do not meet the requirements to be classified in the rest of the categories. • Normal risk under watchlist ('stage 2'): includes all instruments that, without meeting the criteria for classification as doubtful or default risk, have experienced significant increases in credit risk since initial recognition. In order to determine whether a financial instrument has increased its credit risk since initial recognition and is to be classified in stage 2, the Group considers the following criteria: Annual report 2025654 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | --- | --- | | | | | Quantitative criteria | Changes in the risk of a default occurring through the expected life of the financial instrument are analysed and quantified with respect to its credit level in its initial recognition. With the purpose of determining if such changes are considered as significant, with the consequent classification into stage 2, each Group unit has defined the quantitative thresholds to consider in each of its portfolios taking into account corporate guidelines ensuring a consistent interpretation in all units. Within the quantitative thresholds, two types are considered: A relative threshold is those that compare current credit quality with credit quality at the time of origination in percentage terms of change. In addition, an absolute threshold compares both references in total terms, calculating the difference between the two. These absolute/relative concepts are used homogeneously (with different values) in all geographies. The use of one type of threshold or another (or both) is determined in accordance with the process described in note 54, below, and is marked by the type of portfolio and characteristics such as the starting point of the average credit quality of the portfolio. | | Qualitative criteria | In addition to the quantitative criteria indicated, various indicators are used that are aligned with those used by the Group in the normal management of credit risk. Irregular positions of more than 30 days and renewals are common criteria in all Group units. In addition, each unit can define other qualitative indicators, for each of its portfolios, according to the particularities and normal management practices in line with the policies currently in force (i.e. use of management alerts, etc.). The use of these qualitative criteria is complemented with the use of an expert judgement, under the corresponding governance. | In the case of forbearances, instruments classified as 'normal risk under watchlist' may be generally reclassified to 'normal risk' in the following circumstances: at least two years have elapsed from the date of reclassification to that category or from its forbearance date, the client has paid the accrued principal and interest balance, and the client has no other instruments with more than 30 days past due balances. • Doubtful Risk ('stage 3'): includes financial instruments, overdue or not, in which, without meeting the circumstances to classify them in the category of default risk, there are reasonable doubts about their total repayment (principal and interests) by the client in the terms contractually agreed. Likewise, off-balance-sheet exposures whose payment is probable and their recovery doubtful are considered in stage 3. Within this category, two situations are differentiated: – Doubtful risk for non-performing loans: financial instruments, irrespective of the client and guarantee, with balances more than 90 consecutive days on material arrears for principal, interest or expenses contractually agreed. This category also includes all loan balances for a client when the operations with more than 90 consecutive days on material arrears are greater than 20% of the amounts pending collection. These instruments may be reclassified to other categories if, as a result of the collection of part of the past due balances, the reasons for their classification in this category do not remain and the client does not have balances more than 90 consecutive days on material arrears in other loans. – Doubtful risk for reasons other than non-performing loans: this category includes doubtful recovery financial instruments that are not more than 90 consecutive days on material arrears. Grupo Santander considers that a financial instrument to be doubtful for reasons other than delinquency when one or more combined events have occurred with a negative impact on the estimated future cash flows of the financial instrument. To this end, the following indicators, among others, are considered: a) Negative net equity or decrease because of losses of the client's net equity by at least 50% during the last financial year. b) Continued losses or significant decrease in revenue or, in general, in the client's recurring cash flows. c) Generalised delay in payments or insufficient cash flows to service debts. d) Significantly inadequate economic or financial structure or inability to obtain additional financing by the client. e) Existence of an internal or external credit rating showing that the client is in default. f) Existence of overdue customer commitments with a significant amount to public institutions or employees. These financial instruments may be reclassified to other categories if, as a result of an individualised study, reasonable doubts do not remain about the total repayment under the contractually agreed terms and the client does not have balances of 90 days on material arrears. In the case of forbearances, instruments classified as doubtful risk may be reclassified to the category of 'normal risk under watchlist' when the following circumstances are present: a minimum period of one year has elapsed from the forbearance date, the client has paid the accrued principal and interest amounts, and the client has no other loan balances of 90 days on material arrears. • Default Risk: includes all financial assets, or part of them, for which, after an individualised analysis, their recovery is considered remote due to a notorious and irrecoverable deterioration of their solvency. In any event, except in the case of financial instruments with effective collateral covering a substantial portion of the transaction amount, the Group generally consider as remote the following: - Those operations that, after an individualized analysis, are categorized as unsustainable debt, assuming an irrecoverability of such debt. - Transactions classified as doubtful due to non-performing loans with recovery costs that exceed the amounts receivable. - The operations on which the award is executed. The queue of these operations shall be included under default risk, as the recovery of the flows, provided that no further guarantees associated with the operation remain after the award of the property. Annual report 2025655 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | - Those operations on which a deduction is made, the portion of the operation corresponding to that deduction, will be given as a balance at the time of signature. A financial asset amount is maintained in the balance sheet until they are considered as a 'default risk', either all or a part of it, and the write-off is registered against the balance sheet. In the case of operations that have only been partially derecognised, for forgiveness reasons or because part of the total balance is considered unrecoverable, the remaining amount shall be fully classified in the category of 'doubtful risk', except where duly justified. The classification of a financial asset, or part of it, as a 'default risk' does not involve the disruption of negotiations and legal proceedings to recover the amount. iii. Impairment valuation assessment Grupo Santander has policies, methods and procedures in place to hedge its credit risk, both due to the insolvency attributable to counterparties and its residence in a specific country. These policies, methods and procedures are applied in the concession, study and documentation of financial assets, commitments and guarantees, as well as in the identification of their impairment and in the calculation of the amounts needed to cover their credit risk. The impairment represents the best estimation of the financial assets expected credit losses at the balance sheet date, assessed both individually and collectively. • Individually: for the purposes of estimating the provisions for credit risk arising from the insolvency of a financial instrument, the Group individually assesses impairment by estimating the expected credit losses on those financial instruments that are considered to be significant and with sufficient information to make such an estimate. Therefore, this classification mostly includes wholesale banking customers —Corporations, specialised financing— as well as some of the largest companies —Chartered and real estate developers— from retail banking. The determination of the perimeter in which the individualised estimate is applied is detailed in a later section. The individually assessed impairment estimate is equal to the difference between the gross carrying amount of the financial instrument and the estimated value of the expected cash flows receivable discounted using the original effective interest rate of the transaction. The estimate of these cash flows takes into account all available information on the financial asset and the effective guarantees associated with that asset. This estimation process is detailed below. • Collectively: the Group also assesses impairment by estimating the expected credit losses collectively in cases where they are not assessed on an individual basis. This includes, for example, loans with individuals, sole proprietors or businesses in retail banking  subject to a standardised risk management. For the purposes of the collective assessment of expected credit losses, the Group has consistent and reliable internal models. For the development of these models, instruments with similar credit risk characteristics that are indicative of the debtors' capacity to pay are considered. The credit risk characteristics used to group the instruments are, among others: type of instrument, debtor's sector of activity, geographical area of activity, type of guarantee, aging of past due balances and any other factor relevant to estimating the future cash flows. Grupo Santander performs retrospective and monitoring tests to evaluate the reasonableness of the collective estimate. On the other hand, the methodology required to estimate the expected credit loss due to credit events is based on an unbiased and weighted consideration by the probability of occurrence of a series of scenarios, considering a range of three to five possible future scenarios, depending on the characteristics of each unit, which could have an impact on the collection of contractual cash flows, always taking into account the time value of money, as well as all available, reasonable and sustainable information on past events, current conditions and forecasts of the evolution of macroeconomic scenarios that are shown to be relevant for the estimation of this amount (for example: GDP (Gross Domestic Product), housing price, unemployment rate, etc.). The estimation of expected losses requires expert judgment and the support of historical, current and future information. The probability of loss is measured considering past events, the present situation and future trends of macroeconomic scenarios. Grupo Santander uses forward-looking information in both internal risk management and prudential regulation processes, so that for the calculation of the impairment loss allowance, various scenarios are incorporated that take advantage of the experience with such information, thus ensuring consistency in obtaining the expected loss. The complexity of the estimation in this exercise has been derived from the current macroeconomic scenario as a consequence of the complex geopolitical situation, as well changes in inflations levels and interest rates, which has generated uncertainty in economic evolution. Grupo Santander has internally ensured the criteria to be followed for guarantees received from government bodies, both through credit lines and other public guarantees, so that when they are adequately reflected in each of the contracts, they are recognised as mitigating factors of the potential expected losses, and therefore of the provisions to be recognised, based on the provisions of the applicable standard (IFRS 9 Par. B5.5.55). Furthermore, where applicable, these guarantees are appropriately reflected in the mitigation of the significant increase in risk, considering their nature as personal guarantees. For the estimation of the parameters used in the estimation of impairment provisions -EAD (exposure at default), PD (probability of default), LGD (loss given default)-, the Group based its experience in developing internal models for the estimation of parameters both in the regulatory area and for management purposes, adapting the development of the impairment provision models under IFRS 9. Annual report 2025656 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | • Exposure at default: is the amount of estimated risk incurred at the time of the counterparty's analysis. • Probability of default: is the estimated probability that the counterparty will default on its principal and/or interest payment obligations. • Loss given default: is the estimate of the severity of the loss incurred in the event of non-compliance. It depends mainly on the updating of the guarantees associated with the operation and the future cash flows that are expected to be recovered. In any case, when estimating the flows expected to be recovered, portfolio sales are included. It should be noted that due to the Group's recovery policy and the experience observed in relation to the prices of past sales of assets classified as stage 3 and/or default risk, there is no substantial divergence between the flows obtained from recoveries after performing recovery management of the assets with those obtained from the sale of portfolios of assets discounting structural expenses and other costs incurred. The definition of default implemented by the Group for the purpose of calculating the impairment provision models is based on the definition in Article 178 of Regulation 575/2013 of the European Union (CRR), which is fully aligned with the requirements of IFRS 9, which considers that a 'default' exists in relation to a specific customer/contract when at least one of the following circumstances exists: the entity considers that there are reasonable doubts about the payment of all its credit obligations or that the customer/contract is in an irregular situation for more than 90 consecutive days past due material balances with respect to any significant credit obligation. Grupo Santander aligned partially and voluntarily during 2022 the accounting definition of Stage 3, as well as the calculation of impairment provision models, to the New Definition of Default, incorporating the criteria defined by the EBA in its implementation guide of the definition of default, capturing the economic deterioration of the operations (days in default - on a daily basis - and materiality thresholds - minimum amount in arrears). The alignment of criteria was done taking into account the criteria of IFRS 9 as well as the accounting principles of unbiased presentation of financial information. Grupo Santander registered an increase in the default rate at around 19 basis points, with no material impact on the provision figures for credit risk. In addition, the Group considers the risk generated in all cross- border transactions due to circumstances other than the usual commercial risk of insolvency (sovereign risk, transfer risk or risks arising from international financial activity, such as wars, natural catastrophes, balance of payments crisis, etc.). IFRS 9 includes a series of practical solutions that can be implemented by entities, with the aim of facilitating its implementation. In order to achieve a complete and high-level implementation of the standard, and following the best practices of the industry, the Group applies these practical solutions adapting them to their own characteristics and circumstances: – Rebuttable presumption that the credit risk has increased significantly, when payments are more than 30 days past due: this threshold is used as an additional, but not primary, indicator of significant risk increase. – Assets with low credit risk at the reporting date: the Group adopts this practice prioritizing its reduced and punctual use and its systematic and periodic justification through quantitative evidence. This information is provided in more detail in note 54.b. iv. #### Detail of individual estimate of impairment For the individual estimate of the assessment for impairment of the financial asset, the Group has a specific methodology to estimate the value of the cash flows expected to be collected: • Recovery through the debtor's ordinary activities (going approach). • Recovery through the execution and sale of the collateral guaranteeing the operations (gone approach). Gone approach: a. Evaluation of the effectiveness of guarantees Grupo Santander assesses the effectiveness of all the guarantees associated considering the following: • The time required to execute these guarantees. • Grupo Santander's ability to enforce or assert these guarantees in its favour. • The existence of limitations imposed by each local unit´s regulation on the foreclosure of collateral. Under no circumstances the Group considers that a guarantee is effective if its effectiveness depends substantially on the solvency of the debtor, as could be the case: • Promises of shares or other securities of the debtor himself when their valuation may be significantly affected by a debtor's default. • Personal cross-collateralisation: when the guarantor of a transaction is, at the same time, guaranteed by the holder of that transaction. The different types of effective guarantees have been detailed in section i. Definition b. Valuation of guarantees Grupo Santander assesses the guarantees on the basis of their nature in accordance with the following: • Mortgage guarantees on properties associated with financial instruments, using complete individual valuations carried out by independent valuation experts and under generally accepted valuation standards. If this is not possible, alternative valuations are used with duly documented and approved internal valuation models. • Personal guarantees are valued individually on the basis of the guarantor´s updated information. • The rest of the guarantees are valued based on current market values. c. Adjustments to the value of guarantees and estimation of future cash flow inflows and outflows Annual report 2025657 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Grupo Santander applies a series of adjustments to the value of the guarantees in order to improve the reference values: • Adjustments based on the historical sales experience of local units for certain types of assets. • Individual expert adjustments based on additional management information. Likewise, to adjust the value of the guarantees, the time value of money is taken into account based on the historical experience of each of the units, estimating: • Period of adjudication. • Estimated time of sale of the asset. In addition, the Group takes into account all those cash inflows and outflows linked to that guarantee until it is sold: • Possible future income commitments in favour of the borrower which will available after the asset is awarded. • Estimated foreclosure costs. • Asset maintenance costs, taxes and community costs. • Estimated marketing or sales costs. Finally, since it is considered that the guarantee will be sold in the future, the Group applies an additional adjustment ('index forward') in order to adjust the value of the guarantees to future valuation expectations. v. Impairment individual assessment scope Grupo Santander determines the perimeter over which it makes an estimate of the assessment for impairment on an individual basis based on a relevance threshold set by each of the geographical areas and the stage in which the operations are located. In general, the Group applies the individualised calculation of expected losses to the significant exposures classified in stage 3, although Banco Santander, S.A. has also extended its analyses to some of the exposures classified in stage 2. It should be noted that, in any case and irrespective of the stage in which their transactions are carried out, for customers who do not receive standardised treatment, a relational risk management model is applied, with individualised treatment and monitoring by the assigned risk analyst. In addition to wholesale customers (Santander Corporate & Investment Banking or SCIB) and large companies, this relational management model also includes other segments of smaller companies for which there is information and capacity for more personalised and expert analysis and monitoring. As indicated in the Group's wholesale credit model, the individual treatment of the client facilitates the continuous updating of information. The risk assumed must be followed and monitored throughout its life cycle, enabling anticipation and action to be taken in the event of possible impairments. In this way, the customer's credit quality is analysed individually, taking into account specific aspects such as his competitive position, financial performance, management, etc. In the wholesale risk management model, every customer with a credit risk position is assigned a rating, which has an associated probability of customer default. Thus, individual analysis of the debtor triggers a specific rating for each customer, which determines the appropriate parameters for calculating the expected loss, so that it is the rating itself that initially modulates the necessary coverage, adjusting the severity of the possible loss to the guarantees and other mitigating factors that the customer may have available. In addition, if as a result of this individualised monitoring of the customer, the analyst finally considers that his coverage is not sufficient, he has the necessary mechanisms to adjust it under his expert judgement, always under the appropriate governance. h) 'Non-current assets' and 'liabilities associated with non-current assets held for sale' Non-current assets held for sale' includes the carrying amount of individual items, disposal groups or items forming part of a business unit earmarked for disposal (discontinued operations), whose sale in their present condition is highly likely to be completed within one year from the reporting date. Therefore, the recovery of the carrying amount of these items -which can be of a financial nature or otherwise- will foreseeably be effected through the proceeds from their disposal. Specifically, property or other non-current assets received by the consolidated entities as total or partial settlement of their debtors’ payment obligations to them are deemed to be 'Non-current assets held for sale', unless the consolidated entities have decided to make continuing use of these assets. 'Liabilities associated with non-current assets held for sale' includes the balances payable arising from the assets held for sale or disposal groups and from discontinued operations. 'Non-current assets and disposal groups of items that have been classified as held for sale' are generally recognised at the date of their allocation to this category and are subsequently valued at the lower of their fair value less costs to sell or its book value. 'Non- current assets and disposal groups of items that are classified as held for sale' are not amortised as long as they remain in this category. The valuation of the portfolio of non-current assets held for sale has been made in compliance with the requirements of International Financial Reporting Standards in relation to the estimate of the fair value of tangible assets and the value-in-use of financial assets. The value of the portfolio is determined as the sum of the values of the individual elements that compose the portfolio, without considering any total or batch grouping in order to correct the individual values. For the purposes of its consideration in initial recognition, the Group obtains, at the time of award, the fair value of the corresponding asset by requesting an appraisal from external valuation agencies. Grupo Santander has in place a corporate policy that ensures the professional competence and the independence and objectivity of the external appraisal agencies, in accordance with the regulations, which require appraisal agencies to meet independence, neutrality and credibility requirements, so that the use of their estimates does not reduce the reliability of its valuations. Annual report 2025658 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | This policy establishes that all the appraisal companies and agencies with which the Group works in Spain should be registered in the Official Register of the Bank of Spain and that the appraisals performed by them should follow the methodology established in Order ECO/805/2003, of 27 March. The main appraisal companies and agencies with which the Group worked in Spain in 2025 are as follows: Tinsa Tasaciones Inmobiliarias, S.A.U., Sociedad de Tasación, S.A., Global Valuation, S.A.U., Instituto de Valoraciones, S.A., Euroevaluaciones, S.A. and Valoraciones Mediterráneo, S.A. Also, this policy establishes that the various subsidiaries abroad work with appraisal companies that have recent experience in the area and the type of asset under appraisal and meet the independence requirements established in the corporate policy. They should verify, inter alia, that the appraisal company is not a party related to the Group and that its billings to the Group in the last twelve months do not exceed 15% of the appraisal company’s total billings. At 31 December 2025 the fair value less costs to sell of non- current assets held for sale exceeded their carrying amount by EUR 551 million (EUR 553 million at 31 December 2024); however, in accordance with the accounting standards, this unrealised gain could not be recognised. Banco Santander, in compliance with Bank of Spain Circular 4/2017, and subsequent amendments, on public and private financial reporting standards and financial statement models, has developed a methodology that enables it to estimate the fair value and costs of sale of assets foreclosed or received in payment of debts. This methodology is based on the classification of the portfolio of foreclosed assets into different segments. Segmentation enables the intrinsic characteristics of Banco Santander's portfolio of foreclosed assets to be differentiated, so that assets with homogeneous characteristics are grouped by segment. Thus, the portfolio is segmented into (i) finished assets of a residential and tertiary nature, (ii) developments in progress and (iii) land.1 In determining the critical segments in the overall portfolio, assets are classified on the basis of the nature of the asset and its stage of development. This segmentation is made in order to seek the liquidation of the asset (which should be carried out in the shortest possible time). When making decisions, the situation and/or characteristics of the asset are fundamentally taken into account, as well as the evaluation of all the determining factors that favour the recovery of the debt. For them, the following aspects are analyzed, among others: • The time that has elapsed since the adjudication. • The transferability and contingencies of the foreclosed asset. • The economic viability from the real estate point of view with the necessary investment estimate. • The expenses that may arise from the marketing process. • The offers received, as well as the difficulties in finding buyers. In the case of real estate assets foreclosed in Spain, which represent 76% of the Group’s total non-current assets held for sale, the valuation of the portfolio is carried out by applying the following models: • Market Value Model used in the valuation of finished properties of a residential nature (mainly homes and car parks) and properties of a tertiary nature (offices, commercial premises and multipurpose buildings). For the valuation of finished assets whose availability for sale is immediate, a market sale value provided by a third party external to Banco Santander is considered, calculated under the AVM methodology by the comparable properties method adjusted by our experience in selling similar assets, given the term, price, volume, trend in the value of these assets and the time elapsing until their sale and discounting the estimated costs of sale. The market value is determined on the basis of the definition established by the International Valuation Standards drawn up by the IVSC (International Valuation Standards Council), understood as the estimated amount for which an asset or a liability should be exchanged on the measurement date between a willing buyer and a willing seller, in an arm's length transaction, after appropriate marketing, and in which the parties have acted with sufficient information, prudently and without coercion. The current market value of the properties is estimated on the basis of automated valuations obtained by taking comparable properties as a reference; simulating the procedure carried out by an appraiser in a physical valuation according to Order ECO 805/2003: selection of properties and obtaining the unit value by applying homogenisation adjustments. The selection of the properties is carried out by location within the same real estate cluster and according to the characteristics of the properties, filtering by type2, surface area range and age. The model enables a distinction to be made within the municipality under study as to which areas are similar and comparable and therefore have a similar value in the property market, discriminating between which properties are good comparators and which are not. Adjustments to homogenize the properties are made according to: (i) the age of the property according to the age of the property to be valued, (ii) the deviation of the built area from the common area with respect to the property to be valued and (iii) by age of the date of capture of the property according to the price evolution index of the real estate market. In addition, for individually significant assets, complete individual valuations are carried out, including a visit to the asset, market analysis (data relating to supply, demand, current sale or rental price ranges and supply-demand and revaluation expectations) and an estimate of expected income and costs. 1. The assets in a situation of 'stopped development' are included under 'land 2. Assets qualified as protected housing are taken into account. The maximum legal value of these assets is determined by the VPO module, obtained from the result of multiplying the State Basic Module (MBE) by a zone coefficient determined by each autonomous community. To carry out the valuation of a protected property, the useful surface area is used in accordance with current regulations. Annual report 2025659 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | For this segmentation of assets, when they are completed, the real costs are known and the actual expenses for the marketing and sale of the asset must be taken into account. Therefore, Banco Santander uses the actual costs in its calculation engine or, failing that, those estimated on the basis of its observed experience. • Market Value Model according to Evolution of Market Values used to update the valuation of developments in progress. The valuation model estimates the current market value of the properties based on complete individual valuations by third parties, calculated from the values of the feasibility studies and development costs of the promotion, as well as the selling costs, distinguishing by location, size and type of property. The inputs used in the valuation model for residential assets under construction are actual revenues and costs. For this purpose, in order to calculate the investment flows, Banco Santander considers, on the basis of the feasibility studies, the expenditure required for construction, the professional fees relating to the project and to project management, the premiums for mandatory building insurance, the developer's administrative expenses, licenses, taxes on new construction and fees, and urban development charges. With respect to the calculation of income flows, Banco Santander takes into account the square metres built, the number of homes under construction and the estimated selling price over 1.5 years. The market value will be the result of the difference between the income flows and the investment flows estimated at each moment. • Land Valuation model. The methodology followed by the Group regarding land valuation consists of updating the individual reference valuation of each of the land on an annual basis, through updated valuation valuations carried out by independent professionals and following the methodology established in the Order ECO/805/2003, of 27 March, whose main verifications in the case of land valuation, regardless of the degree of urbanisation of the land, correspond to: – Visual verification of the assessed property. – Registry description. – Urban planning. – Visible easements. – Visible state of occupation, possession, use and exploitation. – Protection regime. – Apparent state of preservation. – Correspondence with cadastral property. – Existence of expropriation procedure, expropriation plan or project, administrative resolution or file that may lead to expropriation. – Expiry of the urbanization or building deadlines. – Existence of a procedure for failure to comply with obligations. – Verification of surfaces. For the purposes of valuation, the land will be classified in the following levels: – Level I: It will include all the lands that do not belong to level II. – Level II: It shall include land classified as undeveloped where building is not allowed for uses other than agriculture, forestry, livestock or linked to an economic exploitation permitted by the regulations in force. Also included are lands classified as developable that are not included in a development area of urban planning or that, in such an area, the conditions for its development have not been defined. In those cases where the Group does not have an updated reference value through an ECO valuation for the current year, we use as a reference value the latest available ECO valuation reduced or corrected by the average annual coverage ratio of the land on which we have obtained an updated reference value, through an ECO valuation. Grupo Santander applies a discount to the aforementioned reference values that takes into account both the discount on the reference value in the sales process and the estimated costs of marketing or selling the land; discount on reference value = % discount on sales + % marketing costs being: – % discount on Sales: = 100 - (sales price / updated appraisal value). – marketing costs: calculated on the basis of our historical experience in sales and in accordance with the marketing management fees negotiated with our suppliers of this type of service. In this way the Group obtains the corrected market value, an amount that we compare with the net cost of each piece of land to determine its correct valuation and conclude with our valuation process. In addition, in relation to the previously mentioned valuations, less costs to sell, are contrasted with the sales experience of each type of asset in order to confirm that there is no significant difference between the sale price and the valuation. Impairment losses on an asset or disposal group arising from a reduction in its carrying amount to its fair value (less costs to sell) are recognised under 'Gains or (losses) on non-current assets held for sale not classified as discontinued operations' in the consolidated income statement. The gains on a non-current asset held for sale resulting from subsequent increases in fair value (less costs to sell) increase its carrying amount and are recognised in the consolidated income statement up to an amount equal to the impairment losses previously recognised. Annual report 2025660 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | i) Assets under reinsurance contracts and Liabilities under insurance contracts The Group has prepared the accounting policy that establishes the criteria for recording insurance contracts, in accordance with IFRS 17. This standard defines insurance contracts as contracts under which one party accepts a significant insurance risk from another party by agreeing to compensate the policyholder if a specific uncertain future event negatively affects the policyholder. IFRS 17 requires a level of aggregation of contracts that the Group identifies in portfolios of contracts with similar risks and that are managed jointly. The Group then divides each portfolio into a minimum of three groups: (i) contracts that are onerous on initial recognition; (ii) contracts that, upon initial recognition, have no significant possibility of subsequently becoming onerous; and (iii) any remaining contract. For contracts that are considered not to be onerous, a profit margin is recognized in the profit and loss account (referred to as 'Contractual Service Margin' or 'CSM') throughout the period in which the entity performs the service. However, if at the time of initial recognition, or during the period in which the entity performs the service, the contract is onerous, the entity recognizes the loss in the income statement. Contract limits define the term up to which compliance cash flows must be considered in order to measure an insurance contract. Fulfilment cash flows comprise an unbiased, probability-weighted estimate of future cash flows, a discount adjustment to the present value to reflect the time value of money for monetary and financial risks, and a risk adjustment for non-fulfilment risks. financial. The identification of the contractual limit under IFRS 17 is essential not only for measuring the fulfilment cash flows of a group of contracts, but also for determining the applicable measurement model, in case the contractual limits are identified in a year or more. Cash flows are within the contractual limit of an insurance contract if they arise from substantial rights and obligations that exist during the reporting period, in which the entity can obligate the insurance policyholder to pay premiums or in which the entity has a substantive obligation to provide services to the insured. The Group has carried out an analysis of the limits of insurance and reinsurance contracts under IFRS 17, separately, generally applying the General Model (Building Block Approach) to all contracts, except those eligible to be valued by the Simplified Model (Premium Allocation Approach), or the Variable Commission Approach ('VCA' or Variable Fee Approach). The general model measures a group of contracts as the sum of the fulfilment cash flows and the Contractual Service Margin. The CSM represents benefits not yet recorded that the entity will recognize as providing services under the insurance contract. Insurance contracts with direct participation apply the VCA as a modified version of the General Model. This should reduce the volatility of results due to the asymmetry between the accounting treatment of the profit and losses of the underlying items attributable to the policyholders and the accounting treatment of the liability owed to those policyholders. Another aspect considered in measuring the present value of the future cash flows of a group of insurance contracts is the discount rate applied to reflect the time value of money and the financial risks related to those cash flows. The Group has established a generally chosen methodology and guarantees that the calculation components have a homogeneous basis, previously approved by the Group, establishing the base curves provided by the Group and allowing adjustments to these curves based on the expert criteria of each local address. Likewise, measuring compliance cash flows requires a risk adjustment for non-financial risk. Risk adjustment for non-financial risk is the compensation necessary to withstand uncertainty about the amount and timing of cash flows arising from non-financial risks. If a change in the assumptions occurs, it could affect the income statement or the Other comprehensive income, depending on its nature. The risks covered by the risk adjustment for non- financial risk are insurance risk and other non-financial risks, such as interruption risk and expense risk. j) #### Tangible assets Tangible assets includes the amount of buildings, land, furniture, vehicles, computer hardware and other fixtures owned by the consolidated entities or acquired under finance leases. Tangible assets are classified by use as follows: i. Property, plant and equipment for own use Property, plant and equipment for own use – including tangible assets received by the consolidated entities in full or partial satisfaction of financial assets representing receivables from third parties which are intended to be held for continuing use and tangible assets acquired under finance leases– are presented at acquisition cost, less the related accumulated depreciation and any estimated impairment losses (carrying amount higher than recoverable amount). Depreciation is calculated, using the straight-line method, on the basis of the acquisition cost of the assets less their residual value. The land on which the buildings and other structures stand has an indefinite life and, therefore, is not depreciated. The annual tangible asset depreciation charge is recognised in the consolidated income statement and are essentially equivalent to the following amortization percentages (determined based on the years of estimated useful life, on average, of the different elements): | | | | --- | --- | | | | | | Average annual rate | | Buildings for own use | 2.4% | | Furniture | 9.5% | | Fixtures | 9.5% | | Office and IT equipment | 23.6% | | Lease use rights | Less than the lease term or the useful life of the underlying asset | At the end of each reporting period, consolidated entities assess whether there is any indication that the carrying amount of an asset exceeds its recoverable amount, in which case they write down the carrying amount of the asset to its recoverable amount and adjust future depreciation charges in proportion to its adjusted carrying amount and to its new remaining useful life, if the useful life needs to be re-estimated. Annual report 2025661 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Similarly, if there is an indication of a recovery in the value of a tangible asset, the consolidated entities recognise the reversal of the impairment loss recognised in prior periods and adjust the future depreciation charges accordingly. In no circumstances may the reversal of an impairment loss on an asset raise its carrying amount above that which it would have if no impairment losses had been recognised in prior years. The estimated useful lives of the items of property, plant and equipment for own use are reviewed at least at the end of the reporting period with a view to detecting significant changes therein. If changes are detected, the useful lives of the assets are adjusted by correcting the depreciation charge to be recognised in the consolidated income statement in future years on the basis of the new useful lives. Upkeep and maintenance expenses relating to property, plant and equipment for own use are recognised as an expense in the period in which they are incurred, since they do not increase the useful lives of the assets. ii. Investment property 'Investment property' reflects the net values of the land, buildings and other structures held either to earn rentals or for obtaining profits by sales due to future increase in market prices. The criteria used to recognise the acquisition cost of investment property, to calculate its depreciation and its estimated useful life and to recognise any impairment losses thereon are consistent with those described in relation to property, plant and equipment for own use. In the case of investment properties that support obligations to pay a return directly linked to fair value, or to the returns of certain assets including the investment property itself, such properties are measured using the fair value model. In order to evaluate the possible impairment Grupo Santander determines periodically the fair value of its investment property so that, at the end of the reporting period, the fair value reflects the market conditions of the investment property at that date. This fair value is determined annually, taking as benchmarks the valuations performed by independent experts. The methodology used to determine the fair value of investment property is selected based on the status of the asset in question; thus, for properties earmarked for lease, the valuations are performed using the sales comparison approach, whereas for leased properties the valuations are made primarily using the income capitalisation approach and, exceptionally, the sales comparison approach. In the sales comparison approach, the property market segment for comparable properties is analysed, inter alia, and, based on specific information on actual transactions and firm offers, current prices are obtained for cash sales of those properties. The valuations performed using this approach are considered as Level 2 valuations. In the income capitalisation approach, the cash flows estimated to be obtained over the useful life of the property are discounted taking into account factors that may influence the amount and actual obtainment thereof, such as: (i) the payments that are normally received on comparable properties; (ii) current and probable future occupancy; (iii) the current or foreseeable default rate on payments. The valuations performed using this approach are considered as Level 3 valuations, since significant unobservable inputs are used, such as current and probable future occupancy and/or the current or foreseeable default rate on payments. iii. Assets leased out under an operating lease 'Property, plant and equipment' - Leased out under an operating lease reflects the amount of the tangible assets, other than land and buildings, leased out by the Group under an operating lease. The criteria used to recognise the acquisition cost of assets leased out under operating leases, to calculate their depreciation and their respective estimated useful lives and to recognise the impairment losses thereon are consistent with those described in relation to property, plant and equipment for own use. k) #### Accounting for leases The main aspects contained in the regulation (IFRS 16) adopted by the Group are included below: When the Group acts as lessee, it recognises a right-of-use asset representing its right to use the underlying leased asset with a corresponding lease liability on the date on which the leased asset is available for use by the Group. Each lease payment is allocated between liability and finance charge. The finance charge is allocated to the income statement during the term of the lease in such a way as to produce a constant periodic interest rate on the remaining balance of the liability for each year. The right-of-use asset is depreciated over the useful life of the asset or the lease term, whichever is shorter, on a straight-line basis. If the Group is reasonably certain to exercise a purchase option, the right-of-use asset is amortized over the useful life of the underlying asset. Assets and liabilities arising from a lease are initially measured at present value. Lease liabilities include the net present value of the following lease payments: – Fixed payments (including inflation-linked payments), less any lease incentive receivable. – Variable lease payments that depend on an index or rate. – The amounts expected to be paid by the lessee under residual value guarantees. – The exercise price of a purchase option if the lessee is reasonably certain that it will exercise that option. – Lease termination penalty payments, if the term of the lease reflects the lessee's exercise of that option. Lease payments are discounted using the interest rate implicit in the lease. When this interest rate cannot be obtained, the interest rate used in these cases, is the lessee's incremental borrowing rate at the related date. For this purpose, the entity has calculated this incremental borrowing rate taking as reference the listed debt instruments issued by the Group; in this regard, the Group has estimated different interest rate curves depending on the currency and economic environment in which the contracts are located. In order to construct the incremental borrowing rate, a methodology has been developed at the corporate level. This Annual report 2025662 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | methodology is based on the need for each entity to consider its economic and financial situation, for which the following factors must be considered: – Economic and political situation (country risk). – Credit risk of the company. – Monetary policy. – Volume and seniority of the company’s debt instrument issues. The incremental borrowing rate is defined as the interest rate that a lessee would have to pay for borrowing, given a similar period to the duration of the lease and with similar security, the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment. The Group entities have a wide stock and variety of financing instruments issued in different currencies to that of the euro (pound, dollar, etc.) that provide sufficient information to be able to determine an 'all in rate' (reference rate plus adjustment for credit spread at different terms and in different currencies). In circumstances, where the leasing company has its own financing, this has been used as the starting point for determining the incremental borrowing rate. On the other hand, for those Grupo Santander entities that do not have their own financing, the information from the financing of the consolidated subgroup to which they belong was used as the starting point for estimating the entity's curve, analysing other factors to assess whether it is necessary to make any type of negative or positive adjustment to the initially estimated credit spread. Right-of-use assets are valued at cost which includes the following: – The amount of the initial measurement of the lease liability. – Any lease payment made at or before the commencement date less any lease incentive received. – Any initial direct costs. – Restoration costs. The Group recognises the payments associated with short-term leases and leases of low-value assets on a straight-line basis as an expense in the income statement. Short-term leases are leases with a lease term less than or equal to 12 months (a lease that contains a purchase option is not a short term lease). l) #### Intangible assets Intangible assets are identifiable non-monetary assets (separable from other assets) without physical substance which arise as a result of a legal transaction or which are developed internally by the consolidated entities. Only assets whose cost can be measured reliably and it is likely that the consolidated entities obtain future economic benefits are recognised. Intangible assets are recognised initially at acquisition or production cost and are subsequently measured at cost less any accumulated amortisation and any accumulated impairment losses. i. Goodwill Any excess of the cost of the investments in the consolidated entities and entities accounted for using the equity method over the corresponding underlying carrying amounts acquired, adjusted at the date of first-time consolidation, is allocated as follows: a. If it is attributable to specific assets and liabilities of the companies acquired, by increasing the value of the assets (or reducing the value of the liabilities) whose fair values were higher (lower) than the carrying amounts at which they had been recognised in the acquired entities’ balance sheets. b. If it is attributable to specific intangible assets, by recognising it explicitly in the consolidated balance sheet provided that the fair value of these assets within twelve months following the date of acquisition can be measured reliably. c. The remaining amount is recognised as goodwill, which is allocated to one or more cash-generating units (CGU) (a cash- generating unit is the smallest identifiable group of assets that, as a result of continuing operation, generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets). The cash-generating units represent the Group’s geographical and/or business segments. Goodwill (only recognised when it has been acquired by consideration) represents, therefore, a payment made by the acquirer in anticipation of future economic benefits from assets of the acquired entity that are not capable of being individually identified and separately recognised. At the end of each annual reporting period or whenever there is any indication of impairment goodwill is reviewed for impairment (i.e. a reduction in its recoverable amount to below its carrying amount) and, if there is any impairment, the goodwill is written down with a charge to 'Impairment or reversal of impairment on non-financial assets, net - Intangible assets' in the consolidated income statement. An impairment loss recognised for goodwill is not reversed in a subsequent period. In the event of sale or departure of an activity that is part of a CGU, the part of the goodwill that can be assigned to said activity would be written-off, taking as a reference the relative value of the same over the total of the CGU at the time of sale or abandonment. If applicable, the distribution by currency of the remaining goodwill will be performed based on the relative values of the remaining activities. ii. Other intangible assets Other intangible assets includes the amount of identifiable intangible assets, such as purchased customer lists and computer software. Other intangible assets can have an indefinite useful life -when, based on an analysis of all the relevant factors, it is concluded that there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows for the consolidated entities- or a finite useful life, in all other cases. Annual report 2025663 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Intangible assets with indefinite useful lives are not amortised, but rather at the end of each reporting period or whenever there is any indication of impairment the consolidated entities review the remaining useful lives of the assets in order to determine whether they continue to be indefinite and, if this is not the case, to take the appropriate steps. Intangible assets with finite useful lives are amortised over those useful lives using methods similar to those used to depreciate tangible assets. The intangible asset amortisation charge is recognised under 'Depreciation and amortisation' in the consolidated income statement. In both cases the consolidated entities recognise any impairment loss on the carrying amount of these assets with a charge to 'Impairment or reversal of impairment on non-financial assets, net - Intangible assets in the consolidated' income statement. The criteria used to recognise the impairment losses on these assets and, where applicable, the reversal of impairment losses recognised in prior years are similar to those used for tangible assets (see note 2.k). Internally developed computer software Internally developed computer software is recognised as an intangible asset if, among other requisites (basically the Group’s ability to use or sell it), it can be identified and its ability to generate future economic benefits can be demonstrated. Expenditure on research activities is recognised as an expense in the year in which it is incurred and cannot be subsequently capitalised into the carrying amount of the intangible asset. m) #### Other assets Other assets' in the consolidated balance sheet includes the amount of assets not recorded in other items, the breakdown being as follows: • Inventories: this item includes the amount of assets, other than financial instruments, that are held for sale in the ordinary course of business, that are in the process of production, construction or development for such purpose, or that are to be consumed in the production process or in the provision of services. Inventories include land and other property held for sale in the property development business. Inventories are measured at the lower of cost and net realisable value, which is the estimated selling price of the inventories in the ordinary course of business, less the estimated costs of completion and the estimated costs required to make the sale. Any write-downs of inventories -such as those due to damage, obsolescence or reduction of selling price- to net realisable value and other impairment losses are recognised as expenses for the year in which the impairment or loss occurs. Subsequent reversals are recognised in the consolidated income statement for the year in which they occur. The carrying amount of inventories is derecognised and recognised as an expense in the period in which the revenue from their sale is recognised. ▪ Other: this item includes the balance of all prepayments and accrued income (excluding accrued interest, fees and commissions), the net amount of the difference between pension plan obligations and the value of the plan assets with a balance in the entity’s favour, when this net amount is to be reported in the consolidated balance sheet, and the amount of any other assets not included in other items. n) #### Other liabilities 'Other liabilities' includes the balance of all accrued expenses and deferred income, excluding those related to interests and fees on financial instruments, as well as the amount of any other liabilities not included in other categories. o) #### Provisions and contingent liabilities (assets) When preparing the financial statements of the consolidated entities, Banco Santander makes a distinction between: • Provisions: credit balances covering present obligations at the reporting date arising from past events which could give rise to a loss for the consolidated entities, which is considered to be likely to occur and certain as to its nature but uncertain as to its amount and/or timing. • Contingent liabilities: possible obligations that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more future events not wholly within the control of the consolidated entities. They include the present obligations of the consolidated entities when it is not probable that an outflow of resources embodying economic benefits will be required to settle them. The Group does not recognise the contingent liability. The Group will disclose a contingent liability, unless the possibility of an outflow of resources embodying economic benefits is remote. Irrevocable contingent payments (ICPs), corresponding to payment facilities allowed under the annual contributions of certain levies, are recorded in accordance with the definitions mentioned above. In this regard, on 14 November 2025, the Group learned that the CJEU had definitively resolved the dispute concerning the CPI contributions made by a financial institution to the Single Resolution Fund, upholding the judgment of the General Court of 25 October 2023, which ruled against said financial institution regarding its request for the return of guarantees linked to irrevocable payment commitments for a Group entity whose license had been withdrawn. In light of this ruling, it was concluded that it was not necessary to modify the accounting entries that the Santander Group has made when using these facilities to make contributions corresponding to this levy or to other similar levies that also allow for such contributions. • Contingent assets: possible assets that arise from past events and whose existence is conditional on, and will be confirmed only by, the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group. Contingent assets are not recognised in the consolidated balance sheet or in the consolidated income statement, but rather are disclosed in the notes, provided that it is probable that these assets will give rise to an increase in resources embodying economic benefits. Annual report 2025664 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Grupo Santander’s consolidated financial statements include all the material provisions with respect to which it is considered that it is more likely than not the obligation will have to be settled. In accordance with accounting standards, contingent liabilities must not be recognised in the consolidated financial statements, but must rather be disclosed in the Notes. Provisions (which are quantified on the basis of the best information available on the consequences of the event giving rise to them and are reviewed and adjusted at the end of each year) are used to cater for the specific obligations for which they were originally recognised. Provisions are fully or partially reversed when such obligations cease to exist or are reduced. Provisions are classified according to the obligations covered as follows (see note 25): ▪ Provision for pensions and similar obligations: includes the amount of all the provisions made to cover post-employment benefits, including obligations to pre-retirees and similar obligations. ▪ Provisions for contingent liabilities and commitments: include the amount of the provisions made to cover contingent liabilities -defined as those transactions in which the Group guarantees the obligations of a third party, arising as a result of financial guarantees granted or contracts of another kind- and contingent commitments -defined as irrevocable commitments that may give rise to the recognition of financial assets. ▪ Provisions for taxes and other legal contingencies and Other provisions: include the amount of the provisions recognised to cover tax and legal contingencies and litigation and the other provisions recognised by the consolidated entities. Other provisions includes, inter alia, any provisions for restructuring costs and environmental measures. p) #### Own equity instruments Own equity instruments are those meeting both of the following conditions: ▪ The instruments do not include any contractual obligation for the issuer (i) to deliver cash or another financial asset to a third party; or (ii) to exchange financial assets or financial liabilities with a third party under conditions that are potentially unfavourable to the issuer. ▪ The instruments will or may be settled in the issuer’s own equity instruments and are: (i) a non-derivative that includes no contractual obligation for the issuer to deliver a variable number of its own equity instruments; or (ii) a derivative that will be settled by the issuer through the exchange of a fixed amount of cash or another financial asset for a fixed number of its own equity instruments. Transactions involving own equity instruments, including their issuance and cancellation, are charged directly to equity. Changes in the value of instruments classified as own equity instruments are not recognised in the consolidated financial statements. Consideration received or paid in exchange for such instruments, including the coupons on preference shares contingently convertible into ordinary shares and the coupons associated with CCPP, is directly added to or deducted from equity. q) #### Equity-instrument-based employee remuneration Own equity instruments delivered to employees in consideration for their services, if the instruments are delivered once the specific period of service has ended, are recognised as an expense for services (with the corresponding increase in equity) as the services are rendered by employees during the service period. At the grant date the services received (and the related increase in equity) are measured at the fair value of the equity instruments granted. If the equity instruments granted are vested immediately, Grupo Santander recognises in full, at the grant date, the expense for the services received. When the requirements stipulated in the remuneration agreement include external market conditions (such as equity instruments reaching a certain quoted price), the amount ultimately to be recognised in equity will depend on the other conditions being met by the employees (normally length of service requirements), irrespective of whether the market conditions are satisfied. If the conditions of the agreement are met but the external market conditions are not satisfied, the amounts previously recognised in equity are not reversed, even if the employees do not exercise their right to receive the equity instruments. r) #### Recognition of income and expenses The most significant criteria used by Grupo Santander to recognise its income and expenses are summarised as follows: i. Interest income, interest expenses and similar items Interest income, interest expenses and similar items are generally recognised on an accrual basis using the effective interest method. Dividends received from other companies are recognised as income when the consolidated entities’ right to receive them arises. ii. Commissions, fees and similar items Fee and commission income and expenses are recognised in the consolidated income statement using criteria that vary according to their nature. The main criteria are as follows: ▪ Fee and commission income and expenses relating to financial assets and financial liabilities measured at fair value through profit or loss are recognised when paid. ▪ Those arising from transactions or services that are performed over a period of time are recognised over the life of these transactions or services. ▪ Those relating to services provided in a single act are recognised when the single act is carried out. iii. Non-finance income and expenses They are recognised for accounting purposes when the good is delivered or the non-financial service is rendered. To determine the amount and timing of recognition, a five-step model is followed: identification of the contract with the customer, identification of the separate obligations of the contract, determination of the transaction price, distribution of the transaction price among the identified obligations and finally recording of income as the obligations are satisfied. Annual report 2025665 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | iv. Deferred collections and payments These are recognised for accounting purposes at the amount resulting from discounting the expected cash flows at market rates. v. Loan arrangement fees Loan arrangement fees, mainly loan origination, application and information fees, are accrued and recognised in income over the term of the loan. s) #### Financial guarantees Financial guarantees are considered contracts that require the issuer to make specific payments to reimburse the creditor for the loss it incurs when a specific debtor defaults on its due date payment obligation in accordance with the original or modified conditions of debt instrument, regardless of its legal form, which may be, among others, a deposit, financial guarantee, insurance contract or credit derivative. Grupo Santander initially recognises the financial guarantees provided on the liability side of the consolidated balance sheet at fair value, which is generally the present value of the fees, commissions and interest receivable from these contracts over the term thereof, and simultaneously the Group recognises the amount of the fees, commissions and similar interest received at the inception of the transactions and a credit on the asset side of the consolidated balance sheet for the present value of the fees, commissions and interest outstanding. Financial guarantees, regardless of the guarantor, instrumentation or other circumstances, are reviewed periodically so as to determine the credit risk to which they are exposed and, if appropriate, to consider whether a provision is required. The credit risk is determined by application of criteria similar to those established for quantifying impairment losses on debt instruments carried at amortised cost (described in note 2.g above). The provisions made for these transactions are recognised under 'Provisions - Provisions for commitments and guarantees given in the consolidated balance sheet' (see note 25). These provisions are recognised and reversed with a charge or credit, respectively, to 'Provisions or reversal of provisions', net, in the consolidated income statement. t) Assets under management and investment and pension funds managed by the Group Assets owned by third parties and managed by the consolidated entities are not presented on the face of the consolidated balance sheet. The investment funds and pension funds managed by the consolidated companies are also not presented in the Group's consolidated balance sheet, as they are owned by third parties. The commissions generated by these activities are included in the balance of the 'Commission income' chapter of the consolidated profit and loss account. Note 2.b.iv describes the internal criteria and procedures used to determine whether control exists over the structured entities, which include, inter alia, investment funds and pension funds. u) #### Post-employment benefits Under the collective agreements currently in force and other arrangements, the Spanish banks included in the Group and certain other Spanish and foreign consolidated entities have undertaken to supplement the public social security system benefits accruing to certain employees, and to their beneficiary right holders, for retirement, permanent disability or death, and the post- employment welfare benefits. Grupo Santander's post-employment obligations to its employees are deemed to be defined contribution plans when the Group makes pre-determined contributions (recognised under Personnel expenses in the consolidated income statement) to a separate entity and will have no legal or effective obligation to make further contributions if the separate entity cannot pay the employee benefits relating to the service rendered in the current and prior periods. Post-employment obligations that do not meet the aforementioned conditions are classified as defined benefit plans (see note 25). #### Defined contribution plans The contributions made in this connection in each year are recognised under 'Personnel expenses' in the consolidated income statement. The amounts not yet contributed at each year-end are recognised, at their present value, under 'Provisions - Provision for pensions' and similar obligations on the liability side of the consolidated balance sheet. #### Defined benefit plans Grupo Santander recognises under 'Provisions - Provision for pensions and similar obligations on the liability side of the consolidated balance sheet' (or under 'Other assets' on the asset side, as appropriate) the present value of its defined benefit post- employment obligations, net of the fair value of the plan assets. Plan assets are defined as those that will be directly used to settle obligations and that meet the following conditions: ▪ They are not owned by the consolidated entities, but by a legally separate third party that is not a party related to the Group. ▪ They are only available to pay or fund post-employment benefits and they cannot be returned to the consolidated entities unless the assets remaining in the plan are sufficient to meet all the benefit obligations of the plan and of the entity to current and former employees, or they are returned to reimburse employee benefits already paid by Grupo Santander. If Grupo Santander can look to an insurer to pay part or all of the expenditure required to settle a defined benefit obligation, and it is practically certain that said insurer will reimburse some or all of the expenditure required to settle that obligation, but the insurance policy does not qualify as a plan asset, the Group recognises its right to reimbursement -which, in all other respects, is treated as a plan asset- under 'Insurance contracts linked to pensions' on the asset side of the consolidated balance sheet. Grupo Santander will recognise the following items in the income statement: Annual report 2025666 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | • Current service cost, (the increase in the present value of the obligations resulting from employee service in the current period), is recognised under 'Staff costs'. • The past service cost, which arises from changes to existing post- employment benefits or from the introduction of new benefits and includes the cost of reductions, is recognised under 'Provisions or reversal of provisions'. • Any gain or loss arising from a liquidation of the plan is included in the 'Provisions or reversion of provisions'. • Net interest on the net defined benefit liability (asset), i.e. the change during the period in the net defined benefit liability (asset) that arises from the passage of time, is recognised under 'Interest expense' and similar charges ('Interest and similar income' if it constitutes income) in the consolidated income statement. The remeasurement of the net defined benefit liability (asset) is recognised in 'Other comprehensive income' under Items not reclassified to profit or loss and includes: ▪ Actuarial gains and losses generated in the year, arising from the differences between the previous actuarial assumptions and what has actually occurred and from the effects of changes in actuarial assumptions. ▪ The return on plan assets, excluding amounts included in net interest on the net defined benefit liability (asset). ▪ Any change in the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability (asset). v) #### Other long-term employee benefits Other long-term employee benefits, defined as obligations to pre- retirees -taken to be those who have ceased to render services at the entity but who, without being legally retired, continue to have economic rights vis-à-vis the entity until they acquire the legal status of retiree-, long-service bonuses, obligations for death of spouse or disability before retirement that depend on the employee’s length of service at the entity and other similar items, are treated for accounting purposes, where applicable, as established above for defined benefit post-employment plans, except that actuarial gains and losses are recognised under 'Provisions or reversal of provisions', net, in the consolidated income statement (see note 25). w) #### Termination benefits Termination benefits are recognised when there is a detailed formal plan identifying the basic changes to be made, provided that implementation of the plan has begun, its main features have been publicly announced or objective facts concerning its implementation have been disclosed. x) #### Income tax The expense for Spanish income tax and other similar taxes applicable to the foreign consolidated entities is recognised in the consolidated income statement, except when they arise from a transaction whose results are recognised directly in equity, in which case the related tax effect is recognised in equity. The current income tax expense is calculated as the sum of the current tax resulting from application of the appropriate tax rate to the taxable profit for the year (net of any deductions allowable for tax purposes), and of the changes in deferred tax assets and liabilities recognised in the consolidated income statement. 'Deferred tax assets' and liabilities include temporary differences, which are identified as the amounts expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities and their related tax bases, and tax loss and tax credit carryforwards. These amounts are measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled. 'Tax assets' include the amount of all tax assets, which are broken down into current -amounts of tax to be recovered within the next twelve months- and deferred -amounts of tax to be recovered in future years, including those arising from tax loss or tax credit carryforwards. Tax liabilities' includes the amount of all tax liabilities (except provisions for taxes), which are broken down into current -the amount payable in respect of the income tax on the taxable profit for the year and other taxes in the next twelve months- and deferred -the amount of income tax payable in future years. Deferred tax liabilities are recognised in respect of taxable temporary differences associated with investments in subsidiaries, associates or joint ventures, except when the Group is able to control the timing of the reversal of the temporary difference and, in addition, it is probable that the temporary difference will not reverse in the foreseeable future. In this regard, no deferred tax liabilities of EUR 321.9 million were recognised in relation to the taxation that would arise from the undistributed earnings of certain Group holding companies, in accordance with the legislation applicable in those jurisdictions. Deferred tax assets are only recognised for temporary differences to the extent that it is considered probable that the consolidated entities will have sufficient future taxable profits against which the deferred tax assets can be utilised, and the deferred tax assets do not arise from, in its initial recognition of (i)a business combination, (ii) an operation that does not affect either the tax result or the accounting result or (iii) on the date of the transaction, does not generate deductible and taxable temporary differences for the same amount (in which case assets and deferred tax liabilities). Other deferred tax assets (tax loss and tax credit carryforwards) are only recognised if it is considered probable that the consolidated entities will have sufficient future taxable profits against which they can be utilised. Differences generated by the different accounting and tax treatment of any of the income and expenses recorded directly in equity to be paid or recovered in the future are accounted for as temporary differences. The deferred tax assets and liabilities are reassessed at the reporting date in order to ascertain whether any adjustments need to be made on the basis of the findings of the analyses performed. Annual report 2025667 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Regarding taxes on profits arising from the application of tax laws for the implementation of the Pillar Two model rules, including those related to national minimum complementary taxes, the Group applies the mandatory and temporary exception to the recognition of deferred tax assets and liabilities derived from said tax laws (see note 27.f). y) #### Residual maturity periods In note 51 it is provided an analysis of the maturities of the balances of certain items in the consolidated balance sheet. Santander Group has recorded as 'time liabilities' those recognised financial liabilities in which the counterparty may require payments. Likewise, when Grupo Santander has committed to having amounts available at different maturity periods, these amounts have been recorded in the first year in which they may be required. Additionally, for the financial guarantee contracts issued, the Group has recorded the maximum amount of the financial guarantee issued in the first year in which the guarantee can be executed. z) #### Consolidated statement of recognised income and expense This statement presents the income and expenses generated by the Group as a result of its business activity in the year, and a distinction is made between the income and expenses recognised in the consolidated income statement for the year and the other income and expenses recognised directly in consolidated equity. Accordingly, this statement presents: a.Consolidated profit for the year. b.The net amount of the income and expenses recognised in 'Other comprehensive income' under items that will not be reclassified to profit or loss. c.The net amount of the income and expenses recognised in Other comprehensive income under items that may be reclassified subsequently to profit or loss. d.The income tax incurred in respect of the items indicated in b and c above, except for the valuation adjustments arising from investments in associates or joint ventures accounted for using the equity method, which are presented net. e.Total consolidated recognised income and expense, calculated as the sum of a) to d) above, presenting separately the amount attributable to the parent company and the amount relating to non-controlling interests. The statement presents the items separately by nature, grouping together items that, in accordance with the applicable accounting standards, will not be reclassified subsequently to profit and loss since the requirements established by the corresponding accounting standards are met. aa) #### Statement of changes in total equity This statement presents all the changes in equity, including those arising from changes in accounting policies and from the correction of errors. Accordingly, this statement presents a reconciliation of the carrying amount at the beginning and end of the year of all the consolidated equity items, and the changes are grouped together on the basis of their nature into the following items: a.Adjustments due to changes in accounting policies and to errors: include the changes in consolidated equity arising as a result of the retrospective restatement of the balances in the consolidated financial statements, distinguishing between those resulting from changes in accounting policies and those relating to the correction of errors. b.Income and expense recognised in the year: includes, in aggregate form, the total of the aforementioned items recognised in the consolidated statement of recognised 'Income and expense'. c.Other changes in equity: includes the remaining items recognised in equity, including, inter alia, increases and decreases in capital, distribution of profit, transactions involving own equity instruments, equity-instrument-based payments, transfers between equity items and any other increases or decreases in consolidated equity. ab) #### Consolidated statement of cash flows The following terms are used in the consolidated statements of cash flows with the meanings specified: • Cash flows: inflows and outflows of cash and cash equivalents, which are short-term, highly liquid investments that are subject to an insignificant risk of changes in value, irrespective of the portfolio in which they are classified. Grupo Santander classifies as cash and cash equivalents the balances recognised under 'Cash, cash balances at central banks' and 'Other deposits on demand' in the consolidated balance sheet. • Operating activities: the principal revenue-producing activities of credit institutions and other activities that are not investing or financing activities. • Investing activities: the acquisition or disposal of long-term assets and other investments not included in cash and cash equivalents. • Financing activities: activities that result in changes in the size and composition of the equity and liabilities that are not operating activities. During 2025 Grupo Santander received interest amounting to EUR 109,840 million (EUR 117,046 and EUR 101,029 in 2024 and 2023, respectively) and paid interest amounting to EUR 57,737 million (EUR 61,091 and EUR 50,954 in 2024 and 2023, respectively). Also, dividends received and paid by the Group are detailed in notes 4, 28 and 40, including dividends paid to minority interests (non-controlling interests) Annual report 2025668 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 3. #### Grupo Santander #### a) Banco Santander, S.A., and international #### Group structure The growth of Grupo Santander in the last decades has led Banco Santander to also act, in practice, as a holding entity of the shares of the various companies in its Group, and its results are becoming progressively less representative of the performance and earnings of the Group. Therefore, each year the bank determines the amount of the dividends to be distributed to its shareholders on the basis of the consolidated net profit, while maintaining the Group’s objectives of capitalisation and taking into account that the transactions of the Bank and of the rest of the Group are managed on a consolidated basis (notwithstanding the allocation to each company of the related net worth effect). At the international level, the various banks and other subsidiaries, joint ventures and associates of the Group are integrated in a corporate structure comprising various holding companies which are the ultimate shareholders of the banks and subsidiaries abroad. The purpose of this structure, all of which is controlled Banco Santander, is to optimise the international organisation from the strategic, economic, financial and tax standpoints, since it makes it possible to define the most appropriate units to be entrusted with acquiring, selling or holding stakes in other international entities, the most appropriate financing method for these transactions and the most appropriate means of remitting the profits obtained by the group’s various operating units to Spain. The Appendices provide relevant data on the consolidated group companies and on the companies accounted for using the equity method. #### b) Acquisitions and disposals Following is a summary of the main acquisitions and disposals of ownership interests in the share capital of other entities and other significant corporate transactions performed in the last three years or pending to be completed: i. Agreement for the sale of #### 49% of Santander Bank Polska S.A. and accelerated placement of ordinary shares On 5 May 2025, Banco Santander announced an agreement to sell approximately 49% of the share capital of Santander Bank Polska S.A. (Santander Polska) to Erste Group Bank AG at a price of 584 zlotys per share, as well as the 50% of Santander Towarzystwo Funduszy Inwestycyjnych S.A. (TFI, the asset management business in Poland) owned directly by Banco Santander, S.A., for a total amount of approximately EUR 7,000 million. Following the transaction and the accelerated placement of ordinary shares announced on 2 December 2025, of 3,576,626 ordinary shares of Santander Polska, representing approximately 3.5% of its share capital, for a total import of EUR 407 million, Santander will hold 9.7% of Santander Polska's share capital (58.7% as of 31 December 2025). The transaction was completed on 9 January 2026 (see Note 1.g. Introduction, basis of presentation of the consolidated annual accounts, and other information, subsequent events). As a result of the agreement, the Group has reclassified the assets of Santander Polska and TFI in the consolidated balance sheet as of 31 December 2025, to the heading 'Non-current assets held for sale', and their liabilities to the heading 'Liabilities associated with non-current assets held for sale'. Furthermore, the effect of these businesses on the profit and loss account for the 2025 financial year has been classified under the heading 'Profit/(loss) after tax from discontinued operations' (see Note 12), with the same classification being applied for comparative purposes in the profit and loss accounts for the 2024 and 2023 financial years. As part of this transaction, on 23 December 2025, Santander Consumer, S.A. acquired 60% of Santander Consumer Bank Polska, which was owned by Santander Polska, for PLN 3,105 million (EUR 726 million). This transaction had no significant impact on the Group's consolidated financial statements. ii. Agreement for the acquisition of TSB Banking Group plc On 1 July 2025, Banco Santander announced an agreement with Banco de Sabadell, S.A. for the acquisition of TSB Banking Group plc for approximately GBP 2,650 million (EUR 3,100 million) plus the results generated by this business between 31 March 2025, and the closing of the transaction. The completion of the transaction is subject to the usual conditions for this type of deal, including obtaining the relevant regulatory authorizations. iii. Agreement for the sale of the stake in Caceis On 19 December 2024, Grupo Santander signed an agreement with Crédit Agricole S.A. for the sale of its 30.5% stake in the share capital of CACEIS. As a result of the above, as of 31 December 2024, this participation was reclassified, at its carrying value, from the line item 'investments' to the line item 'Non-current assets held for sale' in the balance sheet (see Note 6). The transaction was formalized in 2025 after obtaining the relevant regulatory approvals, generating a profit before taxes of EUR 231 million registered in the line item 'Gains or losses on non-current assets held for sale not classified as discontinued operations' of the income statement. Following the completion of the planned transaction, Crédit Agricole S.A. holds the 100% of CACEIS’s share capital. The joint depositary, custody and related asset servicing services of Santander and CACEIS in Latin America is not included in the scope of the transaction and continues to be jointly controlled by Santander and CACEIS. iv. #### Accelerated placement of ordinary shares of Santander #### Bank Polska On 10 September 2024, Banco Santander, S.A. announced an accelerated placement of 5,320,000 ordinary shares of its subsidiary Santander Bank Polska S.A., representing approximately 5.2% of its share capital, at a price of PLN 463 (EUR 108) per ordinary share. The transaction was settled on September 13, with the total transaction amounting to PLN 2,463 million (EUR 575 million). Banco Santander will continue to hold a majority stake in Santander Bank Polska S.A. of 62.2% of the share capital (prior to this transaction, the percentage of participation was 67.4%). This sale has resulted in an increase in reserves and valuation adjustments of EUR 158 million and EUR 57 million, respectively, and an increase in minority equity of EUR 360 million. Annual report 2025669 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | v. Tender offers for shares of Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México On 21 October 2022, Banco Santander, S.A. ('Banco Santander') announced that it intends to make concurrent cash tender offers to acquire all of the shares of Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México ('Santander Mexico') in Mexico (Shares) and United States (American Depositary Shares ('ADSs')) which were not owned by Grupo Santander, which amount to approximately  3.76% of Santander Mexico’s share capital. The offers were launched on 7 February 2023 and were originally scheduled to close on 8 March 2023. On 1 March 2023, Banco Santander announced its decision to extend the expiration date of the offers so that they could be concluded on 10 April 2023. Finally, after the offers' closing, 3.6% of the capital accepted the offer, which raised the Group's stake in Santander México from 96.2% to 99.8% .will be settled on 13 March 2023. Shareholders who participated in the offerings received 24.52 Mexican pesos (approximately EUR 1.20) per Share and USD 6.6876 in cash for each ADS (i.e., the equivalent in United States dollars of 122.6 Mexican pesos in cash for each ADS at the US dollar/Mexican peso exchange rate on the expiration date of 10 April 2023),which corresponded to the book value of the Santander México share according to the quarterly report of Santander México corresponding to the fourth quarter of the year 2022 in accordance with applicable legislation, with a total disbursement by Banco Santander of approximately EUR 300 million. The operation led to an increase of EUR 13 million in Reserves and a decrease of EUR 313 million in minority interests. Once the offers were concluded and settled, Banco Santander proceeded to: (i) withdraw the ADSs from the listing on the New York Stock Exchange ('NYSE') and the Shares from the registry before the Securities and Exchange Commission ('SEC') in the United States and; (ii) cancel the registration of the Shares in the National Securities Registry of the National Banking and Securities Commission ('CNBV') and withdraw the listing of the Shares in the Mexican Stock Exchange, S.A.B. de C.V. ('BMV'). Said cancellation was approved by the extraordinary general shareholders' meeting of Santander México held on 30 November 2022, with the favourable vote of the holders of the shares that represent more than 95% of the shares of Santander Mexico, as required by the Mexican Securities Market Law. Pursuant to Mexican law, on 12 May 2023, Banco Santander and Santander México established a trust (the 'Repurchase Trust'), to which the holders of the Shares that remain outstanding after the conclusion of the offers, to sell said Shares to the repurchase trust, at the same cash price that would have been paid to them in the Mexican offer with respect to the same. At the end of the year, said trust was liquidated and the Group's effective participation amounts to 99.98%. #### c) Offshore entities Spanish regulation According to current Spanish regulation (Law 11/2021, of 9 July; Royal Decree 1080/1991, of 5 July; and Order HFP/115/2023, of 9 February), at year-end 2025 Grupo Santander has three branches in the non-cooperative jurisdictions of Jersey, the Isle of Man and the Cayman Islands (offshore entities). The Group also has a subsidiary in Guernsey, which is in the process of being wound up and is tax resident in the United Kingdom, and is therefore subject to its tax regime. i. #### Offshore branches As previously mentioned, Grupo Santander has three offshore branches in the non-cooperative jurisdictions of the Cayman Islands, the Isle of Man and Jersey. They report to, and consolidate balance sheets and income statements with, their respective foreign headquarters. They are taxed either with their headquarters (the Cayman Islands branch in Brazil) or in the territories they are located (Jersey and the Isle of Man, pertain to the UK). These three offshore branches have a total of 147 employees as of December 2025. ii. Subsidiaries in non-cooperative jurisdictions that are tax #### resident in the United Kingdom (UK) Grupo Santander also has a subsidiary incorporated in the non- cooperative jurisdiction of Guernsey, which is not deemed an offshore entity because it operated exclusively from the UK and is tax resident there, and is therefore subject to UK tax law. This subsidiary is in the process of being liquidated as of December 31, 2025. Additionally, during 2025 a subsidiary incorporated in Bermuda and tax resident in the United Kingdom, was liquidated. iii. Other offshore holdings From Brazil, Grupo Santander manages Santander Brazil Global Investment Fund SPC, a segregated portfolio company located in the Cayman Islands. The Group also holds minority, non- controlling financial interests in entities located in non-cooperative jurisdictions, including, among others, Klar Holdings Limited in the Cayman Islands. The European Union (EU) Santander has no presence in any of the 11 jurisdictions included on the EU Council’s blacklist of non-cooperative jurisdictions for tax purposes as of 31 December 2025. Additionally, the EU grey list comprises another 11 jurisdictions which have sufficiently committed to fully adapting their legislation to international tax standards, subject to monitoring by the EU. Within these grey-list jurisdictions, Santander operates only in Morocco through one subsidiary and holds a minority interest in a financial institution tax resident in that jurisdiction. Annual report 2025670 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Organization for Economic Cooperation and Development (OECD) Grupo Santander has no presence in any jurisdictions non- compliant with both OECD standards on transparency and exchange of information for tax purposes (the automatic exchange of information AEOI standard and the exchange of information on request EOIR standard), according to the last annual reports of the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes, released on 2 December 2025. However, Vietnam —a jurisdiction where Santander has a subsidiary— does not comply with the EOIR standard. Meanwhile, The Bahamas and Chile —jurisdictions where Santander is also present—, although they have complete legal and regulatory frameworks in place for the implementation of the AEOI standard, they still need to improve the effectiveness of this standard. Santander presence in offshore territories at the end of 2025 is as follows: Group presence in non-cooperative jurisdictions | | | | | --- | --- | --- | | | | | | Regulatory framework | Group presence in non- cooperative jurisdictions | | | Subsidiaries | Branches | | Spanish legislationa | — | 3b | | Council of the EU blacklist | — | — | | OECDc | — | — | | 2025 | — | 3 | | 2024 | — | 3 | a Additionally, there is one subsidiary constituted in Guernsey (in the process of winding up), but resident for tax purposes in the UK. b The Group has three branches in Jersey, the Isle of Man and the Cayman Islands. These jurisdictions are not included in the European Union’s October 2025 blacklist and fully comply with both OECD international standards on transparency and exchange of information for tax purposes (AEOI and EOIR). c Jurisdictions non-compliant with both OECD standards (AEOI and EOIR). Grupo Santander has the right mechanisms (risk management, supervision, verification and review plans, and regular reporting) to prevent reputational, tax and legal risks in entities resident in non- cooperative jurisdictions. Grupo Santander also maintains its policy of limiting and reducing its presence in non-cooperative jurisdictions when possible. PwC member firms audited the financial statements of Grupo Santander’s offshore entities in 2025, 2024 and 2023. 4. #### Distribution of Banco Santander's profit, shareholder remuneration scheme #### and earnings per share a) Distribution of Banco Santander's profit and #### shareholder remuneration scheme The distribution of the Bank's current annual results that the board of directors will propose for approval by the shareholders at the annual general meeting is as follows: | | | | --- | --- | | | | | EUR million | | | To dividends | 3,520 | | Dividend paid at 31 DecemberA | 1,699 | | Complementary dividend B | 1,821 | | To voluntary reserves C | 7,593 | | Net profit for the year | 11,113 | A. Total amount paid as interim dividend, at the rate of EUR 11.5 fixed cents per eligible share (recorded in 'Shareholders' equity - Interim dividends'). B. Fixed complementary dividend of EUR 12.5 gross cents per eligible share, payable in cash as from 5 May 2026. The total amount has been estimated on the assumption that, as a result of the partial implementation of the buyback program announced on February 3, 2026, the number of the Bank's outstanding shares eligible for the dividend will be 14,568,470,446 and that, as envisaged, the capital increase submitted to the 2026 general meeting under item 6.C of the agenda will not be executed before 5 May 2026. Therefore, the total amount of the complementary dividend may be lower if more shares than initially envisaged are acquired under the buy-back programme, or higher if fewer shares are acquired under the buy-back programme or if the capital increase submitted to this general meeting under item 6.C of the agenda is executed before 5 May 2026. C. Estimated amount corresponding to a complementary dividend of EUR 1,821,058,805.75 . To be increased or reduced by the same amount by which the total amount of the final dividend is lower or higher, respectively, than its estimated amount. The transcribed proposal comprises the part of the 2025 shareholder remuneration policy that is implemented through cash dividends (the interim dividend paid in November 2025 of EUR 11.5 cents per share with dividend entitlement, approved by the board of directors on September 30, 2025, and the complementary dividend expected to be paid as of 5 May 2026, of EUR 12.5 cents per share with the dividend entitlement, proposed by the board of directors on 24 February 2026, and therefore subject to approval by the general meeting). The remuneration policy also provides for shareholder remuneration through the implementation of share buyback programmes, to which an amount equivalent to 25% of the Group’s underlying profit will be allocated. The first programme charged to 2025 results, amounting to approximately amount of EUR 1,700  million, was completed between August 2025 and December 2025. In addition, in 2025 Banco Santander announced its objective of allocating at least EUR 10,000 million to share buybacks in respect of 2025 and 2026 results and expected excess capital. As part of this objective, on 4 February 2026 a second buyback programme was launched for a maximum total amount of EUR 5,030 million, of which EUR 1,830 million corresponds to an amount equivalent to c.25% of the Group’s underlying profit in the second half of 2025, and the remaining EUR 3,200 million corresponds to c.50% of the capital released following completion of the sale of the 49% stake in Santander Bank Polska. A capital reduction resolution is also being submitted to the general meeting to enable the cancellation of the treasury shares acquired under this second buyback programme. Annual report 2025671 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The accounting statement, prepared by the Bank pursuant to legal requirements, evidencing the existence of sufficient liquidity for the payment of the interim dividend on the date and for the amount mentioned above, was as follows: | | | | --- | --- | | | | | EUR million | | | | 31 August 2025 | | Profit before taxes | 6,193 | | Tax expense | 635 | | Dividends paid in cash | — | | Distributable maximum amount | 5,558 | | Available liquidity | 96,923 | Finally, and although it does not form part of the remuneration charged to the 2025 financial year, it is hereby stated that, in execution of the resolution of the general meeting held on 4 April 2025, on 2 May 2025 the Bank paid a final cash dividend of EUR 11 cents per share charged to the results of the 2024 financial year. Finally, also charged to the results of 2024, the Bank implemented two repurchase programs. The first of them for a maximum amount of EUR 1,525 million, was completed in December 2024, and the second, for a maximum amount of EUR 1,587  million, was completed in June 2025. b) Earnings/loss per share from continuing and #### discontinued operations i. Basic earnings / loss per share Basic earnings/loss per share are calculated by dividing the net profit attributable to the Group, adjusted by the after-tax amount of the remuneration of contingently convertible preference shares (PPCC) recognised in equity and the capital perpetual preference shares (PPCA) (see note 23) , if applicable, by the weighted average number of ordinary shares outstanding during that period, excluding the average number of own shares held through that period. Accordingly: | | | | | | --- | --- | --- | --- | | | | | | | | 2025 | 2024 | 2023 | | Profit (Loss) attributable to the Parent (EUR million) | 14,101 | 12,574 | 11,076 | | Remuneration of PPCC and PPCA (EUR million) (note 23) | (622) | (620) | (492) | | | 13,479 | 11,954 | 10,584 | | Of which: | | | | | Profit (Loss) from discontinued operations (non controlling interest net) (EUR million) | 962 | 822 | 717 | | Profit (Loss) from continuing operations (non- controlling interest and PPCC and PPCA net) (EUR million) | 12,517 | 11,132 | 9,867 | | Weighted average number of shares outstanding | 14,890,304,840 | 15,497,607,269 | 16,172,084,714 | | Basic earnings (Loss) per share (euros) | 0.905 | 0.771 | 0.654 | | Of which, from discounted operations (euros) | 0.065 | 0.053 | 0.044 | | Basic earnings (Loss) per share from continuing operations (euros) | 0.840 | 0.718 | 0.610 | Annual report 2025672 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | ii. Diluted earnings / loss per share Diluted earnings/loss per share are calculated by dividing the net profit attributable to the Group, adjusted by the after-tax amount of the remuneration of contingently convertible preference shares recognised in equity (PPCC) recognised in equity and the capital perpetual preference shares (PPCA) (see note 23) , by the weighted average number of ordinary shares outstanding during the year, excluding the average number of treasury shares and adjusted for all the dilutive effects inherent to potential ordinary shares (share options, and convertible debt securities). Accordingly, diluted earnings/loss per share were determined as follows: | | | | | | --- | --- | --- | --- | | | | | | | | 2025 | 2024 | 2023 | | Profit (Loss) attributable to the Parent (EUR million) | 14,101 | 12,574 | 11,076 | | Remuneration of PPCC and PPCA (EUR million) (Note 23) | (622) | (620) | (492) | | Dilutive effect of changes in profit for the period arising from potential conversion of ordinary shares | — | — | — | | | 13,479 | 11,954 | 10,584 | | Of which: | | | | | Profit (Loss) from discontinued operations (net of non-controlling interests) (EUR million) | 962 | 822 | 717 | | Profit (Loss) from continuing operations (net of non-controlling interests and PPCC and PPCA) (EUR million) | 12,517 | 11,132 | 9,867 | | Weighted average number of shares outstanding | 14,890,304,840 | 15,497,607,269 | 16,172,084,714 | | Dilutive effect of options/rights on shares | 85,269,647 | 70,110,570 | 75,180,407 | | Adjusted number of shares | 14,975,574,487 | 15,567,717,839 | 16,247,265,121 | | Diluted earnings (Loss) per share (euros) | 0.900 | 0.768 | 0.651 | | Of which, from discounted operations (euros) | 0.064 | 0.053 | 0.044 | | Diluted earnings (Loss) per share from continuing operations (euros) | 0.836 | 0.715 | 0.607 | 5. #### Remuneration and other benefits paid to the Bank’s directors and senior #### managers The following section contains qualitative and quantitative disclosures on the remuneration paid to the members of the board of directors —both executive and non-executive directors— and senior managers for 2025 and 2024. #### a) Remuneration of Directors i. Bylaw-stipulated emoluments The annual general meeting held on 22 March 2013 approved an amendment to the Bylaws, whereby the remuneration of directors in their capacity as board members became an annual fixed amount determined by the annual general meeting. This amount shall remain in effect unless the shareholders resolve to change it at a general meeting. However, the board of directors may elect to reduce the amount in any years in which it deems such action justified. The maximum remuneration established by the annual general meeting was EUR 6 million in 2025 (EUR 6 million in 2024), with two components: (a) an annual emolument and (b) attendance fees. The specific amount payable for the above-mentioned items to each of the directors is determined by the board of directors. For such purpose, it takes into consideration the positions held by each director on the board, their membership of the board and the board committees and their attendance to the meetings thereof, and any other objective circumstances considered by the board. The total Bylaw-stipulated emoluments earned by the directors in 2025 amounted to EUR 5.3 million (EUR 5.4 million in 2024). Annual report 2025673 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Annual allotment For 2025, the board of directors, upon recommendation of the remuneration committee, approved a 3% increase in the annual allotments payable to the chair and members of the board and its committees (including the executive committee), as well as to the lead independent director and the non-executive Vice Chair . Accordingly, each director received, in respect of 2024 and 2025, the amounts corresponding to their service on the board and its committees, with such amounts determined by the specific position held, as detailed in the table below. | | | | | --- | --- | --- | | | | | | Amount per director in euros | 2025 | 2024 | | Members of the board of directors | 100,940 | 98,000 | | Members of the executive committee | 175,100 | 170,000 | | Members of the audit committee | 44,290 | 43,000 | | Members of the appointments committee | 28,840 | 28,000 | | Members of the remuneration committee | 28,840 | 28,000 | | Members of the risk supervision, regulation and compliance committee | 44,290 | 43,000 | | Members of the responsible banking, sustainability and culture committee | 28,840 | 28,000 | | Members of the innovation and technology committee | 28,840 | 28,000 | | Chair of the audit committee | 72,100 | 70,000 | | Chair of the appointments committee | 51,500 | 50,000 | | Chair of the remuneration committee | 51,500 | 50,000 | | Chair of the risk supervision, regulation and compliance committee | 72,100 | 70,000 | | Chair of the responsible banking, sustainability and culture committee | 51,500 | 50,000 | | Chair of the innovation and technology committee | 72,100 | 70,000 | | Lead independent  directorA | 113,300 | 110,000 | | Non-executive Vice Chair | 30,900 | 30,000 | A. Glenn Hutchins has been allocated EUR 700,000 (including annual allowances and attendance fees) in minimum total annual pay set for the required time and dedication to perform his roles. Attendance fees The directors receive fees for attending board and committee meetings, excluding executive committee meetings, where no attendace fees are received. In line with the adjustment to the annual allotments, the board of directors approved a 3% increase for 2025 in attendance fees compared with 2024. Accordingly, attendance fees for meetings of the board and its committees (with the exception of the Executive Committee, for which no attendance fees are payable) amounted, for the last two years, to the totals set out in the table below: | | | | | --- | --- | --- | | | | | | Attendance fees per director per meeting in euros | 2025 | 2024 | | Board of directors | 2,785 | 2,704 | | Audit committee and risk supervision, regulation and compliance committee | 1,821 | 1,768 | | Other committees (excluding executive committee) | 1,606 | 1,560 | ii. Salaries The executive directors receive salaries. In accordance with the policy approved by the annual general meeting, salaries are composed of a fixed annual remuneration and a variable one, which consists in a unique incentive, which is a deferred variable remuneration plan linked to multi-year objectives, which establishes the following payment scheme: • 40% of the variable remuneration amount, determined at year- end on the basis of the achievement of the established objectives, is paid immediately. • The remaining 60% is deferred over five years, provided that the conditions of permanence in the Group and non-concurrence of the malus clauses are met, and subject to long term metrics, taking into account the following accrual scheme: – The accrual of the first and second portion (20% of total variable compensation, paid in 2027 and 2028) will be conditional on none of the malus clauses being triggered. – The accrual of the third, fourth and fifth portion (40% of total variable compensation and paid in 2029, 2030 and 2031), is linked to objectives related to the period 2025—2027 and the metrics and scales associated with these objectives. The fulfilment of the objectives determines the percentage to be paid of the deferred amount in these three annuities, and these targets can reduce these amounts and the number of deferred instruments, or increase them up to a maximum achievement ratio of 125%, so executives have the incentive to exceed their targets. In accordance with current remuneration policies, the amounts already paid will be subject to a possible recovery (clawback) by the Bank during the period set out in the policy in force at each moment. Payment of the approved incentive is paid 40% in cash and the remaining 60% in instruments, consisting of Banco Santander shares and restricted stock units (RSUs) of PagoNxt, split as: ◦ the amount of PagoNxt RSUs set for each year; and ◦ the rest, all in shares of Banco Santander. Comparative of executive remuneration (Chair and CEO) The target bonus of the Executive Chair and the CEO for 2025 remains unchanged compared to 2024. Variable contributions to pensions were not modified in 2025, so the amounts are the 22% of the 30% of the last three assigned bonus' average. In assessing individual performance, the Board considered the Grupo Santander’s strong results for 2025, reflecting continued delivery of our strategic plan. Attributable profit reached EUR 14,101 million in 2025, up 12% year-on-year (or +16% in constant euros), with a TSR during the year of 132% (+60% in relative terms vs. our peer group). The Board also evaluated the leadership of the Executive Chair and the Chief Executive Officer in delivering these results and advancing the Group’s strategic priorities. Taking these factors into account, it determined that both executives achieved an 'Exceptional' level of performance and approved the corresponding variable remuneration. Moreover, the ratio of executive directors’ total remuneration to underlying attributable profit fell to 0.17% from 0.18% in 2024. Annual report 2025674 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | iii. Detail by director The detail, by bank director, of the short-term (immediate) and deferred (not subject to long-term goals) remuneration for 2025 and 2024 is provided below: | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | EUR thousand | | | | | | | | | | | | 2025 | | | | | | | | | | Bylaw-stipulated emoluments | | | | | | | | | | Annual emolument | | | | | | | | | | BoardF | Executive committee | Audit committee | Nomination committee | Remuneration committee1 | Risk supervision, regulation and compliance oversight committee2 | Responsible banking, sustainability and culture committee | Innovation and technology committee | Attendance fees and commissions | | | | | | | | | | | | | | | | | | | | | | | | Ana Botín | 101 | 175 | — | — | — | — | — | 29 | 44 | | Héctor Grisi | 101 | 175 | — | — | — | — | — | 29 | 44 | | José Antonio Álvarez | 132 | 175 | — | — | — | 44 | — | 29 | 67 | | Glenn Hutchins | 412 | — | — | 29 | 80 | — | — | 101 | 78 | | Homaira Akbari | 101 | — | 44 | — | — | — | 29 | 29 | 81 | | Javier BotínA | 101 | — | — | — | — | — | — | — | 36 | | Sol Daurella | 101 | — | — | 29 | 29 | — | 80 | — | 75 | | Henrique de Castro | 101 | — | 44 | — | 29 | — | — | 29 | 80 | | Gina Díez | 101 | — | — | 29 | — | — | 29 | — | 63 | | Luis Isasi | 101 | 175 | — | — | 29 | 44 | — | — | 74 | | Belén Romana | 101 | 175 | 44 | 80 | — | 44 | — | 29 | 107 | | Pamela Walkden | 101 | — | 44 | — | — | 116 | 29 | — | 93 | | Germán de la Fuente | 101 | — | 116 | — | — | 44 | — | — | 83 | | Carlos Barrabés B | 101 | — | — | 29 | — | — | 29 | 29 | 71 | | Antonio WeissC | 101 | — | — | — | 29 | — | — | — | 50 | | Bruce Carnegie- Brown D | — | — | — | — | — | — | — | — | — | | Ramiro MatoE | — | — | — | — | — | — | — | — | — | | Total 2025 | 1,857 | 875 | 292 | 196 | 196 | 292 | 196 | 304 | 1,047 | | Total 2024 | 1,791 | 933 | 306 | 183 | 168 | 263 | 190 | 280 | 1,240 | A. All amounts received were reimbursed to Fundación Botín. B. Director and member of the nomination committee, responsible banking, sustainability and culture committee and innovation and technology committee since 27 June 2024. C. Director since 27 June 2024. D. Stepped down as director on 22 March 2024. E. Stepped down as director on 27 June 2024. F. Also includes emoluments for other roles in the board. Changes in the chairship or membership of the committees: 1. Antonio Weiss was appointed member of the remuneration committee on 1 January 2025. 2. José Antonio Álvarez was appointed member of the risk supervision, regulation and compliance oversight committee on 1 January 2025. Other remuneration includes EUR 1,000 thousand for the role as non-executive Chair of the Santander España business unit and for attending its board and committee meetings for Luis Isasi. For José Antonio Álvarez, this amount includes remuneration as strategic advisor of Grupo Santander, life and health insurance contributions (EUR 678 thousand) and part of the former supplement for having waived the death and disability policy (EUR 12 thousand). Annual report 2025675 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | 2025 | | | | | | | | | | 2024 | | | | | | | | | | | | | | | | Short-term and deferred (not subject to long-term goals) salaries of executive directors | | | | | | | | | | | | | | | | | | | | Fixed | Variable - immediate payment | | Deferred variable | | | | | | | | | | In cash | In instruments | In cash | In instruments | Total | Pension contribution | Other remuneration | Total | | Total | | Ana Botín | 3,435 | 2,003 | 2,003 | 1,001 | 1,002 | 9,444 | 1,341 | 843 | 11,977 | | 12,127 | | Héctor Grisi | 3,150 | 1,384 | 1,384 | 692 | 692 | 7,302 | 1,120 | 718 | 9,489 | | 9,137 | | José Antonio Álvarez | — | — | — | — | — | — | — | 2,440 | 2,887 | | 3,698 | | Glenn Hutchins | — | — | — | — | — | — | — | — | 700 | | 700 | | Homaira Akbari | — | — | — | — | — | — | — | — | 284 | | 285 | | Javier Botín A | — | — | — | — | — | — | — | — | 137 | | 144 | | Sol Daurella | — | — | — | — | — | — | — | — | 314 | | 292 | | Henrique de Castro | — | — | — | — | — | — | — | — | 283 | | 300 | | Gina Díez | — | — | — | — | — | — | — | — | 222 | | 225 | | Luis Isasi | — | — | — | — | — | — | — | 1,000 | 1,423 | | 1,440 | | Belén Romana | — | — | — | — | — | — | — | — | 581 | | 599 | | Pamela Walkden | — | — | — | — | — | — | — | — | 383 | | 381 | | Germán de la Fuente | — | — | — | — | — | — | — | — | 344 | | 338 | | Carlos BarrabésB | — | — | — | — | — | — | — | — | 259 | | 128 | | Antonio Weiss C | — | — | — | — | — | — | — | — | 180 | | 72 | | Bruce Carnegie- Brown D | — | — | — | — | — | — | — | — | — | | 78 | | Ramiro Mato E | — | — | — | — | — | — | — | — | — | | 271 | | Total 2025 | 6,585 | 3,387 | 3,387 | 1,693 | 1,694 | 16,746 | 2,461 | 5,001 | 29,462 | | — | | Total 2024 | 6,585 | 3,130 | 3,130 | 1,877 | 1,879 | 16,601 | 2,444 | 5,815 | — | | 30,214 | Footnotes in previous table. Annual report 2025676 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Following is the detail by executive director of the salaries linked to multi-year objectives at their fair Value, which will only be received if the conditions of permanence in the Group, non-applicability of malus clauses and achievement of the established objectives are met (or, as the case may be, of the minimum thresholds thereof, with the consequent reduction of amount agreed-upon at the end of the year) in the terms described in Note 46. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | EUR thousand | | | | | | | | 2025 | | | | 2024 | | | Variable subject to long- term objectives 1 | | | | | | | In cash | In shares | In RSUs | Total | Total | | Ana Botín | 701 | 1,893 | 210 | 2,804 | 2,332 | | Héctor Grisi | 484 | 1,277 | 176 | 1,938 | 1,611 | | Total | 1,185 | 3,170 | 386 | 4,742 | 3,943 | 1. Corresponds with the fair value of the maximum amount they are entitled to in a total of 3 years: 2029, 2030 and 2031, subject to conditions of continued service, with the exceptions provided, and to the non-applicability of malus clauses and achievement of the objectives established . The face value of the three aforementioned deferred amounts is EUR 6,774 thousand for 2025 (EUR 4,006 thousand for Ana Botín and EUR 2,768 thousand for Héctor Grisi). The fair value has been determined at the grant date based on the valuation report of an independent expert, Willis Towers Watson. Based on the design of the plan for 2025 and the levels of achievement of similar plans in comparable entities, the fair value considered is 70% of the variable remuneration subject to long- term objectives. (see note 46). Note 5.e below includes disclosures on the shares delivered from the deferred remuneration schemes in place in previous years and for which delivery conditions were met, as well as on the maximum number of shares that may be received in future years in connection with the aforementioned 2025 and 2024 variable remuneration plans. #### b) Remuneration of the board members as #### representatives of the Bank By resolution of the executive committee, all the remuneration received by the Bank’s directors who represent the Bank on the boards of directors of listed companies in which the Bank has a stake, paid by those companies and relating to appointments made on or after 18 March 2002 , accrues to the Group. In 2025 the Bank’s directors did not receive any remuneration in respect of these representative duties. On the other hand, in their personal capacity, in 2025 Homaira Akbari was paid USD 100 thousand (EUR 85 thousand ) as member of the board of Santander Consumer USA Holdings, Inc. and EUR 200 thousand as member of the board of PagoNxt S.L., and José Antonio Álvarez and Henrique de Castro were each paid the same EUR 200 thousand as members of the board of PagoNxt S.L. (Henrique de Castro also received EUR 15 thousand as member of the nomination committee of PagoNxt, S.L.). Likewise, Pamela Walkden was paid GBP 100 thousand (EUR 115 thousand ) as member of Santander UK plc and Santander UK Group Holdings; and Belén Romana EUR 157 thousand as member of the Board of Santander Insurance, S.L. Likewise, Luis Isasi was paid EUR 1,000 thousand as non-executive Chair of the Santander España business unit and for attending its board and committee meetings (amounts paid by Banco Santander, S.A.). And finally, José Antonio Álvarez, as strategic adviser of Grupo Santander, received fixed remuneration of EUR 1,750 thousand. In addition, he received the life and health insurance contributions, and the part of the former supplement for having waived the death and disability policy. #### c) Post-employment and other long-term #### benefits In 2012, the contracts of Ana Botín and other members of the Bank's senior management with defined benefit pension commitments were modified to transform these commitments into a defined contribution system, which covers the contingencies of retirement, disability and death. From that moment on, the Bank makes annual contributions to their pension system for their benefit. This system gives them the right to receive benefits upon retirement, regardless of whether or not they are active at the Bank at such time, based on contributions to the system, and replaced their previous right to receive a pension supplement in the event of retirement. The initial balance for Ana Botín in the new defined benefits system corresponded to the market value of the assets from which the provisions corresponding to the respective accrued obligations had materialised on the date on which the old pension commitments were transferred into the new benefits system. Since 2013, the Bank has made annual contributions to the benefits system for executive directors and other members of executive team, in proportion to their respective pensionable bases, until they leave Grupo Santander or until their retirement within the Group, death, or disability. The benefit plan system is outsourced to Santander Seguros y Reaseguros, Compañía Aseguradora, S.A., and the economic rights of the foregoing directors under this plan belong to them regardless of whether or not they are active at the Bank at the time of their retirement, death or disability. In accordance with the provisions of the remuneration regulations, contributions made calculated on variable remuneration are subject to the discretionary pension benefits regime. Under this regime, contributions are subject to malus clauses and clawback according to the policy in force at any given time and during the same period in which the variable remuneration is deferred. Furthermore, they must be invested in bank shares for a period of five years from the date when the executive director leaves the Group, regardless of whether or not they leave to retire. Once that period has elapsed, the amount invested in shares will be reinvested, along with the remainder of the cumulative balance corresponding to the executive director, or it will be paid to the executive director or to their beneficiaries in the event of a contingency covered by the benefits system. Annual report 2025677 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | As per the director´s remuneration policy approved at the 23 March 2018 general shareholder´s meeting, the system was changed with a focus on: • Aligning the annual contributions with practices of comparable institutions. • Reducing future liabilities by eliminating the supplementary benefits scheme in the event of death (death of spouse or parent) and permanent disability of serving directors. • Not increasing total costs for the Bank. The changes to the system were the following: • Fixed and variable pension contributions were reduced to 22% of the respective pensionable bases. The gross annual salaries and the benchmark variable remuneration were increased in the corresponding amount with no increase in total costs for the Bank. The pensionable base for the purposes of the annual contributions for the executive directors is the sum of fixed remuneration plus 30% of the average of their last three variable remuneration amounts. This means complying with Circular 2/2016 of the Bank of Spain, standard 41, on pension benefits, by which a part of not less than 15% of the total contribution must be based on variable components. • The death and disability supplementary benefits were eliminated since 1 April 2018. A fixed remuneration supplement (included in other remuneration in section a.iii in this note) was implemented the same date. During 2025, this fixed remuneration supplement has expired both for Ana Botín and José Antonio Álvarez, in line with the age of 65 initially set at the time this remuneration component was approved. • The total amount insured for life and accident insurance was increased. The provisions recognised in 2025 and 2024 for retirement pensions were as follows: | | | | | --- | --- | --- | | | | | | EUR thousand | | | | | 2025 | 2024 | | Ana Botín | 1,341 | 1,339 | | Héctor Grisi | 1,120 | 1,105 | | Total | 2,461 | 2,445 | Following is a detail of the balances relating to each of the directors under the welfare system as of  31 December 2025 and 2024: | | | | | --- | --- | --- | | | | | | EUR thousand | | | | | 2025 | 2024 | | Ana Botín | 65,027 | 54,731 | | Héctor Grisi | 2,033 | 1,299 | | José Antonio Álvarez | 23,178 | 20,326 | | Total | 90,238 | 76,356 | #### d) Insurance The Group pays for life insurance policies for the Bank’s directors, who will be entitled to receive benefits if they are declared disabled. In the event of death, the benefits will be payable to their heirs. The premiums paid by the Group are included in the 'Other remuneration' column of the table shown in Note 5.a.iii above. Also, the following table provides information on the sums insured for the Bank’s directors: | | | | | --- | --- | --- | | | | | | Insured capital | | | | EUR thousand | | | | | 2025 | 2024 | | Ana Botín | 20,659 | 21,525 | | Héctor Grisi | 12,600 | 12,600 | | José Antonio Álvarez | 10,500 | 11,215 | | Total | 43,759 | 45,340 | The insured capital has been modified in 2018 for Ana Botín  as part of the pension systems transformation set out in note 5.c) above, which has encompassed the elimination of the supplementary benefits systems (death of spouse and death of parent) and the increase of the life and accident insurance annuities. During 2025 and 2024, the Group has disbursed a total amount of EUR 8.3 million and EUR 13.5 million, respectively, for the payment of civil-liability insurance premiums. These premiums correspond to several civil-liability insurance policies that hedge, among others, directors, senior management and other managers and employees of the Group and the Bank itself, as well as its subsidiaries, in light of certain types of potential claims of third parties. For this reason, it is not possible to disaggregate or individualize the amount that correspond to the directors and executives. As of 31 December 2025 and 2024, no life insurance commitments exist for the Group in respect of any other directors. Annual report 2025678 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### e) Deferred variable remuneration systems The following information relates to the maximum number of shares to which the executive directors are entitled at the beginning and end of 2025 and 2024 due to their participation in the deferred variable remuneration systems, which instrumented a portion of their variable remuneration relating to 2025 and prior years, as well as on the deliveries, in shares or in cash, made to them in 2025 and 2024 once the conditions for the receipt thereof had been met (see Note 46): i) #### Deferred variable compensation plan linked to multiannual objectives In the annual shareholders meeting of 18 March 2016, with the aim of simplifying the remuneration structure, improving the ex- ante risk adjustment and increasing the incidence of long-term objectives, the bonus plan (deferred and conditioned variable compensation plan) and ILP were replaced by one single plan. The variable remuneration of executive directors and certain executives (including senior management) corresponding to 2025 has been approved by the board of directors and implemented through the tenth cycle of the deferred variable remuneration plan linked to multi-year objectives. The application of the plan was authorised by the annual general meeting of shareholders, as it entails the delivery of shares to the beneficiaries. As indicated in section a.ii of this note, 60% of the variable remuneration amount is deferred over five years for executive directors, to be paid, where appropriate, provided that the conditions of permanence in the Group, according to the following accrual scheme: • The accrual of the first and second parts (instalments in 2027 and 2028) is conditional on none of the malus clauses being triggered. • The accrual of the third, fourth and fifth parts (instalments in 2029, 2030 and 2031) is linked to non-concurrence of malus clauses and the fulfilment of certain objectives related to the 2025‑ 2027 period. These objectives and their respective weights are: – Banco Santander’s consolidated Return on tangible equity (RoTE) target in 2027 (weight of 30%). – Relative performance of Banco Santander's total shareholder return (TSR) in 2025-2027 in respect of the weighted TSR of a peer group comprising 9 credit institutions, with the appropriate TSR ratio based on the group’s TSR among its peers (weight of 50%). – Four sustainability metrics, which have different weighting (with a total weight of 20%). The degree of compliance with the above objectives determines the percentage to be applied to the deferred amount in these three annuities, with a maximum achievement ratio of 125%, so executives have the incentive to exceed their targets. Both the immediate payment and the two first deferrals (short- term part) are paid 50% in cash and the remaining 50% in instruments. The last three deferrals (conditioned to long-term metrics) are paid 25% in cash and 75% in instruments. The accrual of deferred amounts (whether or not subject to performance measures) is conditioned, in addition to the permanence of the beneficiary in the Group, to non-occurrence, during the period prior to each of the deliveries, of any the circumstances giving rise to the application of malus as set out in the Group’s remuneration policy in its chapter related to malus and clawback. Likewise, the amounts already paid of the incentive will be subject to clawback by the Bank in the cases and during the term foreseen in said policy,  and in accordance with the terms and conditions foreseen in it. Malus and clawback clauses are triggered by poor financial performance of Banco Santander, a division or area, or exposures from staff as a result of an executive(s)’s management of, at least, one of these factors: i. Significant failures in risk management committed by the entity, or by a business unit or risk control. ii. The increase suffered by the entity or by a business unit of its capital needs, not foreseen at the time of generation of the exposures. iii. Regulatory sanctions or judicial sentences from events that could be attributable to the unit or the personnel responsible for those. Also, the breach of internal codes of conduct of the entity. iv. Irregular conduct, whether individual or collective. In this regard, the negative effects derived from the marketing of inappropriate products and the responsibilities of the people or bodies that made those decisions will be specially considered. In addition to the existing policy on malus and clawback clauses of our remuneration policy, the addendum to our remuneration policy entitled 'Financial Statement Restatement Compensation' regulates the recoupment of compensation received by the executive directors of Banco Santander, S.A., and senior management, in the event of a financial restatement (according to the regulation) resulting from material noncompliance with financial reporting requirements under US federal securities laws. The maximum amount of shares to be delivered under the plan is within the maximum amount of the award to be delivered in shares (EUR 11.5 million) approved at the 2025 AGM for executive directors. At its meeting on 25 November 2025 and pursuant to the powers granted by shareholders at the 2025 AGM, the board agreed to amend the calculation period used to determine the number of shares to be delivered from 50 to 30 trading sessions (under no circumstances may the number of shares exceed the maximum approved at the AGM), as the board considered that this better reflects market practice and enables us to offset share price volatility. Thus, the number of shares to be delivered under the 2025 policy has been calculated with the weighted average daily volume of weighted average listing prices of Banco Santander shares in the 30 trading sessions prior to the Friday (not inclusive) before 4 February 2025 (the date on which the board approved the 2025 bonus for executive directors), which was EUR 10.261 per share. According to an independent experts' valuation, the price per PagoNxt, S.L. RSU equals EUR 61.07. Annual report 2025679 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | ii) #### Shares assigned by deferred variable remuneration plans The following table shows the number of Santander shares assigned to each director already in service and pending delivery as of 1 January 2024, 31 December 2024 and 31 December 2025, as well as the gross shares that were delivered to them in 2024 and 2025, either in the form of an immediate payment or a deferred payment. In this case after having been appraised by the board, at the proposal of the remuneration committee, that the corresponding one-fifth of each plan had accrued. They come from the deferred conditional and linked to multi-year objectives in 2019, 2020, 2021, 2022, 2023, 2024 and 2025 were formalized. | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Share-based variable remuneration | | | | | | | | | | Maximum number of shares to be delivered at January 1,2024 | Shares delivered in 2024 (immediate payment 2023 variable remuneration) | Shares delivered in 2024 (deferred payment 2022 variable remuneration) | Shares delivered in 2024 (deferred payment 2021 variable remuneration) | Shares delivered in 2024 (deferred payment 2020 variable remuneration) | Shares delivered in 2024 (deferred payment 2019 variable remuneration) | Variable remuneration 2024 (Maximum number of shares to be delivered) | | 2019 variable remuneration | | | | | | | | | Ana Botín | 70,905 | — | — | — | — | (35,452) | — | | José Antonio Álvarez | 47,386 | — | — | — | — | (23,693) | — | | | 118,290 | — | — | — | — | (59,145) | — | | 2020 variable remuneration | | | | | | | | | Ana Botín | 93,146 | — | — | — | (31,049) | — | — | | José Antonio Álvarez | 50,594 | — | — | — | (16,865) | — | — | | | 143,740 | — | — | — | (47,914) | — | — | | 2021 variable remuneration | | | | | | | | | Ana Botín | 710,698 | — | — | (177,675) | — | — | — | | José Antonio Álvarez | 479,644 | — | — | (119,911) | — | — | — | | | 1,190,342 | — | — | (297,586) | — | — | — | | 2022 variable remuneration | | | | | | | | | Ana Botín | 358,419 | — | (62,334) | — | — | — | — | | José Antonio Álvarez | 241,954 | — | (42,079) | — | — | — | — | | | 600,374 | — | (104,413) | — | — | — | — | | 2023 variable remuneration | | | | | | | | | Ana Botín | 1,127,209 | (469,286) | — | — | — | — | — | | Héctor Grisi | 749,143 | (321,645) | — | — | — | — | — | | | 1,876,352 | (790,931) | — | — | — | — | — | | 2024 variable remuneration | | | | | | | | | Ana Botín | — | — | — | — | — | — | 976,463 | | Héctor Grisi | — | — | — | — | — | — | 656,033 | | | — | — | — | — | — | — | 1,632,496 | | 2025 variable remuneration 1 | | | | | | | | | Ana Botín | — | — | — | — | — | — | — | | Héctor Grisi | — | — | — | — | — | — | — | | | — | — | — | — | — | — | — | 1. For each director, 40% of the shares indicated correspond to the short-term variable (or immediate payment). The remaining 60% is deferred for delivery, where appropriate, in the next five years, the last three being subject to the fulfilment of multiannual objectives. Maximum opportunity subject to regulatory ratio compliance. Annual report 2025680 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | Maximum number of shares to be delivered at December 31, 2024 | Instruments matured but not consolidated at January 1, 2025 2 | Shares delivered in 2025 (immediate payment 2024 variable remuneration) | Shares delivered in 2025 (deferred payment 2023 variable remuneration) | Shares delivered in 2025 (deferred payment 2022 variable remuneration) | Shares delivered in 2025 (deferred payment 2021 variable remuneration) | Shares delivered in 2025 (deferred payment 2020 variable remuneration) | Shares delivered in 2025 (deferred payment 2019 variable remuneration) | Variable remuneration 2025 (Maximum number of shares to be delivered) | Maximum number of shares to be delivered at December 31, 2025 | | | | | | | | | | | | | 35,452 | — | — | — | — | — | — | (35,452) | — | — | | 23,693 | — | — | — | — | — | — | (23,693) | — | — | | 59,145 | — | — | — | — | — | — | (59,145) | — | — | | | | | | | | | | | | | 62,097 | — | — | — | — | — | (31,049) | — | — | 31,048 | | 33,729 | — | — | — | — | — | (16,865) | — | — | 16,864 | | 95,826 | — | — | — | — | — | (47,914) | — | — | 47,912 | | | | | | | | | | | | | 533,023 | (44,774) | — | — | — | (162,750) | — | — | — | 325,499 | | 359,733 | (30,218) | — | — | — | (109,838) | — | — | — | 219,677 | | 892,756 | (74,992) | — | — | — | (272,588) | — | — | — | 545,176 | | | | | | | | | | | | | 296,085 | — | — | — | (62,334) | — | — | — | — | 233,751 | | 199,875 | — | — | — | (42,079) | — | — | — | — | 157,796 | | 495,961 | — | — | — | (104,413) | — | — | — | — | 391,548 | | | | | | | | | | | | | 657,923 | — | — | (114,421) | — | — | — | — | — | 543,502 | | 427,498 | — | — | (74,347) | — | — | — | — | — | 353,151 | | 1,085,421 | — | — | (188,768) | — | — | — | — | — | 896,653 | | | | | | | | | | | | | 976,463 | — | (404,447) | — | — | — | — | — | — | 572,016 | | 656,033 | — | (279,480) | — | — | — | — | — | — | 376,553 | | 1,632,496 | — | (683,927) | — | — | — | — | — | — | 948,569 | | | | | | | | | | | | | — | — | — | — | — | — | — | — | 602,746 | 602,746 | | — | — | — | — | — | — | — | — | 408,159 | 408,159 | | — | — | — | — | — | — | — | — | 1,010,904 | 1,010,904 | 2. The levels of achievement of the multi-year metrics of the long-term variable remuneration plans: 1) Seventh cycle of the deferred multi-year objectives variable remuneration plan (2022): 115.2% of achievement for the period 2022-2024. a. RoTE metric for 2024 year-end period at 150%. Weight of 40.0%. b. Relative TSR metric in 2022-2024 period at 83% of achievement. Weight of 40.0%. c. Sustainability metrics at 25% of achievement. Weight of 20.0%. 2) Sixth cycle of the deferred multi-year objectives variable remuneration plan (2021): 91.6% of achievement for the period 2021- 2023. a. CET1 metric at 100% of achievement for 2023 year-end period (target 12.00%). Weight of 33.3%. b. Underlying BPA growth at 150% of achievement (target growth of 100%). Weight of 33.3%. c. TSR metric at 25% of achievement (target of 33 to 66 percentile). Weight of 33.3%. 3) Fifth cycle of the deferred multi-year objectives variable remuneration plan (2020): 83.0% of achievement for the period 2020-2022. a. CET1 metric at 100% of achievement for 2022 year-end period (target 12.00%). Weight of 33.3%. b. Underlying BPA growth at 150% of achievement (target growth of 10%). Weight of 33.3%. c. TSR metric at 0% of achievement (minimum target of 33% not reached). Weight of 33.3% Furthermore, the maximum number of RSUs of PagoNxt, S.L. to be delivered under the current plan (and subject to regulatory ratio compliance) is 9,415 and 7,909 units for Ana Botín and Héctor Grisi, respectively. Annual report 2025681 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | In addition, the table below shows the cash delivered in 2025 and 2024, by way of either immediate payment or deferred payment, in the latter case once the Board had determined, at the proposal of the remuneration committee, that one deferral relating to each plan had accrued: | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | EUR thousand | | | | | | | | 2025 | | | 2024 | | | | Cash paid (immediate payment 2024 variable remuneration) | Cash paid (deferred payments from 2023, 2022, 2021 and 2020 variable remuneration) | | Cash paid (immediate payment 2023 variable remuneration) | Cash paid (deferred payments from 2022, 2021, 2020 and 2019 variable remuneration) | | Ana Botín | 1,851 | 1,759 | | 1,780 | 1,419 | | Héctor Grisi | 1,279 | 366 | | 1,220 | 863 | | José Antonio Álvarez | — | 815 | | — | 945 | | Total | 3,130 | 2,940 | | 3,000 | 3,228 | #### iii) #### Information on former members of the board of directors The chart below includes  information on the maximum number of shares to which former members of the board of directors, are entitled for their participation in the various deferred variable remuneration systems, which instrumented a portion of their variable remuneration relating to the years in which they were executive directors. Also set forth below is information on the deliveries, whether in shares or in cash, made in 2025 and 2024 to former board members, upon achievement of the conditions for the receipt thereof (see note 46): | | | | | --- | --- | --- | | | | | | Maximum number of shares to be delivered | | | | | 2025 | 2024 | | Deferred conditional variable remuneration plan and linked to objectives (2019) | — | 24,490 | | Deferred conditional variable remuneration plan and linked to objectives (2020) | 35,511 | 71,024 | | Deferred conditional variable remuneration plan and linked to objectives (2021) | 137,400 | 206,100 | | | | | | --- | --- | --- | | | | | | Number of shares delivered | | | | | 2025 | 2024 | | Deferred conditional variable remuneration plan and linked to objectives (2018) | — | 29,860 | | Deferred conditional variable remuneration plan and linked to objectives (2019) | 24,490 | 24,490 | | Deferred conditional variable remuneration plan and linked to objectives (2020) | 35,512 | 35,512 | | Deferred conditional variable remuneration plan and linked to objectives (2021) | 68,700 | 12,911 | In addition, EUR 724 thousand and EUR 650 thousand relating to the deferred portion payable in cash of the aforementioned plans were paid each in 2025 and 2024. Annual report 2025682 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### f) Loans Grupo Santander’s direct risk exposure to the bank’s directors and the guarantees provided for them are detailed below. These transactions were made on terms equivalent to those that prevail in arm’s-length transactions or the related compensation in kind was recognized: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | EUR thousand | | | | | | | | | | 2025 | | | | 2024 | | | | | Loans and credits | Guarantees | Total | | Loans and credits | Guarantees | Total | | Ana Botín | 3 | — | 3 | | — | — | — | | Héctor Grisi | — | — | — | | — | — | — | | José Antonio Álvarez | — | — | — | | — | — | — | | Glenn Hutchins | — | — | — | | — | — | — | | Antonio Francesco Weiss B | — | — | — | | — | — | — | | Belén Romana | — | — | — | | — | — | — | | Bruce Carnegie-Brown A | — | — | — | | — | — | — | | Germán de la Fuente | — | — | — | | — | — | — | | Gina Díez Barroso | — | — | — | | 5 | — | 5 | | Henrique de Castro | — | — | — | | — | — | — | | Homaira Akbari | — | — | — | | — | — | — | | Javier Botín | — | — | — | | — | — | — | | Juan Carlos Barrabés  C | 137 | — | 137 | | 138 | — | 138 | | Luis Isasi | — | — | — | | — | — | — | | Pamela Walkden | — | — | — | | — | — | — | | Ramiro Mato D | — | — | — | | — | — | — | | Sol Daurella | — | — | — | | — | — | — | | | 140 | — | 140 | | 143 | — | 143 | A. Ceased as director of Banco Santander, S.A. on 22 March 2024. B. Director since 27 June 2024. C. Director since 27 June 2024. D. Ceased as director of Banco Santander, S.A. on 27 June 2024 . #### g) Senior management The table below includes the amounts relating to the short-term remuneration of the members of senior management at 31 December 2025 and those at 31 December 2024, excluding the remuneration of the executive directors, which is detailed above. | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | EUR thousand | | | | | | | | | | | | | | Short-term salaries and deferred remuneration | | | | | | | | | | | | | Variable remuneration (bonus) - Immediate payment | | | Deferred variable remuneration | | | | | | Year | Number of persons | Fixed | In cash | In instruments 2 | | In cash | In instruments 3 | Pensions | Other remuneration1 | Total | | 2025 | 15 | 19,255 | 9,179 | 9,180 | | 4,306 | 4,306 | 4,910 | 6,456 | 57,592 | | 2024 | 14 | 16,466 | 7,376 | 7,377 | | 3,319 | 3,320 | 4,520 | 7,153 | 49,531 | 1.Includes other remuneration items such as life and medical insurance premiums and localization aids and lastly RSUs from PagoNxt S.L., for the work of one director in said entity. 2.The amount of immediate payment for 2024 is 894,587 shares (1,611,965 Santander shares in 2024). 3.The deferred amount in instruments not linked to long-term objectives for 2024 is 416,410 shares ( 725,399 Santander shares in 2024). In addition to the amounts reflected in the table, salary remunerations amounting to EUR 4,118 thousand were granted in the form of buyouts and sign-on awards, related to the recruitment of new members who joined this employee group during the year. In 2025, the ratio of variable to fixed pay components was 134% of the total for senior managers, well within the maximum limit of 200% set by 2024 AGM. Annual report 2025683 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Also, the detail of the breakdown of the remuneration linked to long-term objectives of the members of senior management at 31 December 2025 and 31 December 2024 is provided below. These remuneration payments shall be received, as the case may be, in the corresponding deferral periods, upon achievement of the conditions stipulated for each payment (see note 46): | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR thousand | | | | | | | | Variable remuneration subject to long-term objectives 1 | | | | Year | Number of people | Cash payment | Instrument payment | Total | | 2025 | 15 | 4,521 | 4,522 | 9,043 | | 2024 | 14 | 3,485 | 3,486 | 6,971 | 1.Relates to the fair value of the maximum annual amounts for years 2029, 2030 and 2031 of the tenth cycle of the deferred conditional variable remuneration plan (2028, 2029 and 2030 for the ninth cycle of the deferred variable compensation plan linked to annual objectives for the year 2024). The face value of the three aforementioned deferred amounts is EUR 12,919 thousand for 2025. Additionally, members of senior management who stepped down from their roles in 2025 consolidated salary remuneration and other remuneration for a total amount of EUR 2,905 thousand (EUR 12,303 thousand in 2024). In 2025 rights regarding variable pay subject to long-term objectives amounted to EUR 342 thousand (EUR 633 thousand were generated in 2024 for this collective). The maximum number of Santander shares that the members of senior management at each plan grant date (excluding executive directors) were entitled to receive as of 31 December 2025 and 31 December 2024 relating to the deferred portion under the various plans then in force is the following (see note 46): | | | | | --- | --- | --- | | | | | | Maximum number of shares to be delivered | | | | | 2025 | 2024 | | Deferred conditional variable remuneration plan and linked to objectives (2019) | — | 71,294 | | Deferred conditional variable remuneration plan and linked to objectives (2020) | 145,704 | 370,522 | | Deferred conditional variable remuneration plan and linked to objectives (2021) | 486,863 | 966,680 | | Deferred conditional variable remuneration plan and linked to objectives (2022) | 891,305 | 1,430,464 | | Deferred conditional variable remuneration plan and linked to objectives (2023) | 934,609 | 1,395,815 | | Deferred conditional variable remuneration plan and linked to objectives (2024) | 1,601,213 | — | Since the conditions established in the corresponding deferred share-based remuneration schemes for prior years had been met, the following number of Santander shares was delivered in 2025 and 2024 to the senior management, in addition to the payment of the related cash amounts: | | | | | --- | --- | --- | | | | | | Number of shares delivered | | | | | 2025 | 2024 | | Deferred conditional variable remuneration plan and linked to objectives (2018) | — | 57,730 | | Deferred conditional variable remuneration plan and linked to objectives (2019) | 54,249 | 71,294 | | Deferred conditional variable remuneration plan and linked to objectives (2020) | 145,704 | 185,261 | | Deferred conditional variable remuneration plan and linked to objectives (2021) | 243,433 | 351,777 | | Deferred conditional variable remuneration plan and linked to objectives (2022) | 266,390 | 357,615 | | Deferred conditional variable remuneration plan and linked to objectives (2023) | 233,652 | 1,212,984 | | Deferred conditional variable remuneration plan and linked to objectives (2024) | 1,399,679 | — | As indicated in note 5.c above, senior management participate in the benefit system created in 2012, which covers the contingencies of retirement, disability and death. Banco Santander makes annual contributions to the benefit plans of its senior managers. In 2012, the contracts of the senior managers with benefit pension commitments were amended to transform them into a contribution system. The system, which is outsourced to Santander Seguros y Reaseguros, Compañía Aseguradora, S.A., gives senior managers the right to receive benefits upon retirement, regardless of whether or not they are active at Banco Santander at such time, based on contributions to the system. This new system replaced their previous right to receive a pension supplement in the event of retirement. In the event of pre-retirement, and up to the retirement date, senior managers appointed prior to September 2015 are entitled to receive an annual allowance. In addition, further to applicable remuneration regulations, from 2016 (inclusive), a discretionary pension benefit component of at least 15% of total remuneration  in contributions to the pension system has been included. Under the regime corresponding to these discretionary benefits, the contributions that are calculated on variable remunerations are subject to malus and clawback clauses, subject to policies applicable at each time, and during the same period in which the variable remuneration is deferred. Likewise, the annual contributions calculated on variable remunerations must be invested in Bank shares for a period of five years from the date that the senior manager leaves the Group, regardless of whether or not they leave to retire. Once that period has elapsed, the amount invested in shares will be reinvested, along with the remainder of the cumulative balance corresponding to the senior manager, or it will be paid to the senior manager or to their beneficiaries in the event of a contingency covered by the benefits system. Annual report 2025684 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The contracts of some members of senior management were modified at the beginning of 2018 with the same objective and changes indicated in section c of this note for Ana Botín. The modifications, which are aimed at aligning the annual contributions with the practices of comparable institutions and reducing the risk of future obligations by eliminating the supplementary scheme for death (widowhood and orphanhood) and permanent disability in service without increasing the costs to the bank, are as follows: • Contributions to the pensionable bases were reduced. Gross annual salaries were increased in the corresponding amount. • The death and disability supplementary benefits were eliminated since 1 January 2018 for some members of senior management and since 1 April 2018 for executive directors. A fixed remuneration supplement reflected in other remuneration in the table above was implemented on the same date. • The amounts insured for life and accident insurance were increased. All of the above was done without an increase in total cost for the Bank. The balance as of 31 December 2025 in the pension system for those who were part of senior management at year end amounted to EUR 51 million (EUR 51 million at 31 December 2024). The net charge to income corresponding to pension amounted to EUR 4.9 million  in 2025 (EUR 4.5 million in 31 December 2024). In 2025 and 2024 there have been no payments in the form of a single payment of the annual voluntary pre-retirement allowance. Additionally, the capital insured by life and accident insurance at 31 December 2025 of this group amounts to EUR 78 million (EUR 83 million at 31 December 2024). #### h) Post-employment benefits to former directors #### and former senior executive vice presidents The post-employment benefits and settlements paid in 2025 to former directors of the Bank, other than those detailed in note 5.c amounted to EUR 5.6 million and EUR 5.6 million in 2024, respectively. Also, the post-employment benefits and settlements paid in 2025 to former executive vice presidents amounted to EUR 16 million and EUR 12.7 million  in 2024, respectively. Contributions to insurance policies that hedge pensions to previous members of the Bank’s board of directors, amounted to EUR 0.17 million in 2025 (EUR 0.17 million in 2024). Likewise, contributions to insurance policies that hedge pensions for previous senior managers amounted to EUR 1.3 million in 2025 (EUR 2.3 million in 2024). No releases or charges were recorded in the consolidated income statement for pension commitments and similar obligations held by the Group with previous former members of the bank's board of directors or former members of senior management in 2025 and 2024. In addition, 'Provisions - Pension Fund and similar obligations' in the consolidated balance sheet as at 31 December 2025 included EUR 43 million in respect of the post-employment benefit obligations to former Directors of the Bank (EUR 46 million at 31 December 2024) and EUR 108 million corresponding to former members of senior management (EUR 96 million at 31 December 2024). #### i) Pre-retirement and retirement The board of directors approved an amendment to the contracts of executive directors whereby they ceased to have the right to pre- retire in case of termination of his contract. #### j) Contract termination The executive directors and members of senior management have indefinite-term employment contracts. Executive directors or senior managers whose contracts are terminated voluntarily or due to breach of duties are not entitled to receive any economic compensation. If Banco Santander terminates the contract for any other reason, they will be entitled to the corresponding legally- stipulated termination benefit, without prejudice to any compensation that may  for non-competition obligations, as detailed in the directors' remuneration policy. If Banco Santander were to terminate her contract, Ana Botín would have to remain at Banco Santander’s disposal for a period of 4 months in order to ensure an adequate transition, and would receive her fixed salary during that period. k) Information on investments held by the directors in other companies and conflicts of interest None of the members of the board of directors have declared that they or persons related to them may have a direct or indirect conflict of interest with the interests of Banco Santander, S.A., as set forth in article 229 of the Corporate Enterprises Act. Annual report 2025685 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 6. #### Loans and advances to central banks #### and credit institutions The detail, by classification, type and currency, of Loans and advances to central banks and credit institutions in the consolidated balance sheets is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | CENTRAL BANKS | 2025 | 2024 | 2023 | | Classification | | | | | Financial assets held for trading | 14,632 | 12,966 | 17,717 | | Non-trading financial assets mandatorily at fair value through profit or loss | — | — | — | | Financial assets designated at fair value through profit or loss | — | — | — | | Financial assets designated at fair value through other comprehensive income | — | — | — | | Financial assets at amortised cost | 15,986 | 16,179 | 20,082 | | | 30,618 | 29,145 | 37,799 | | Type | | | | | Time deposits | 15,986 | 16,179 | 17,747 | | Reverse repurchase agreements | 14,632 | 12,966 | 20,052 | | Impaired assets | — | — | — | | Valuation adjustments for impairment | — | — | — | | | 30,618 | 29,145 | 37,799 | | CREDIT INSTITUTIONS | | | | | Classification | | | | | Financial assets held for trading | 25,967 | 27,314 | 14,061 | | Non-trading financial assets mandatorily at fair value through profit or loss | — | — | — | | Financial assets designated at fair value through profit or loss | 413 | 408 | 459 | | Financial assets designated at fair value through other comprehensive income | 1,120 | 363 | 313 | | Financial assets at amortised cost | 61,513 | 55,537 | 57,917 | | | 89,013 | 83,622 | 72,750 | | Type | | | | | Time deposits | 10,665 | 9,036 | 8,560 | | Reverse repurchase agreements | 52,365 | 48,932 | 35,846 | | Non- loans advances | 25,987 | 25,659 | 28,353 | | Impaired assets | — | — | — | | Valuation adjustments for impairment | (4) | (5) | (9) | | | 89,013 | 83,622 | 72,750 | | CURRENCY | | | | | Euro | 43,697 | 43,347 | 34,229 | | Pound sterling | 5,147 | 2,424 | 3,539 | | US dollar | 23,320 | 22,539 | 17,602 | | Brazilian real | 43,577 | 39,379 | 47,151 | | Other currencies | 3,890 | 5,078 | 8,028 | | TOTAL | 119,631 | 112,767 | 110,549 | The loans and advances to credit institutions classified under 'Financial assets at amortised' cost are mainly time accounts and deposits. Note 51 contains a detail of their residual maturity periods. This line item also includes irrevocable payment commitments to the Single Resolution Fund made in accordance with article 70.3 of Regulation 806/2014, which establishes uniform rules and a uniform procedure for the resolution of credit institutions and certain security service companies. investment within the framework of a Single Resolution Mechanism and a Single Resolution Fund, for which, in accordance with the standard, no provision has been recorded, these commitments have not been significant regarding the consolidated annual accounts. At 31 December 2025 the gross exposure by impairment stage of the assets accounted subject to impairment for amounts to EUR 78,623 million, EUR 0 million and EUR 0 million (EUR 72,084, EUR 0 million and EUR 0 million in 2024 and EUR 78,321 million, EUR 0 million and EUR 0 million in 2023 ), and the loan loss provision by impairment stage amounts to EUR 4 million, EUR 0 million and EUR 0 million (EUR 5 million, EUR 0 million and EUR 0 million in 2024 and EUR 9 million, EUR 0 million and EUR 0 million in 2023 ) in stage 1, stage 2 and stage 3, respectively. Annual report 2025686 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 7. #### Debt securities #### a) Detail The detail, by classification, type and currency, of Debt securities in the consolidated balance sheets is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Classification | | | | | Financial assets held for trading | 98,568 | 82,646 | 62,124 | | Non-trading financial assets mandatorily at fair value through profit or loss | 245 | 447 | 860 | | Financial assets designated at fair value through profit or loss | 2,894 | 2,897 | 3,095 | | Financial assets designated at fair value through other comprehensive income | 58,305 | 76,558 | 73,565 | | Financial assets at amortised cost | 140,014 | 120,949 | 103,559 | | | 300,026 | 283,497 | 243,203 | | Type | | | | | Spanish government debt securities | 63,742 | 56,919 | 40,321 | | Foreign government debt securities | 172,468 | 164,747 | 145,732 | | Issued by financial institutions | 17,465 | 16,776 | 14,681 | | Other fixed-income securities | 46,029 | 44,703 | 42,294 | | Impaired financial assets | 842 | 701 | 461 | | Impairment losses | (520) | (349) | (286) | | | 300,026 | 283,497 | 243,203 | | Currency | | | | | Euro | 142,969 | 118,456 | 90,857 | | Pound sterling | 14,114 | 15,630 | 9,284 | | US dollar | 50,671 | 48,189 | 38,161 | | Brazilian real | 48,231 | 44,432 | 46,190 | | Other currencies | 44,561 | 57,139 | 58,997 | | Debt securities excluding impairment adjustments | 300,546 | 283,846 | 243,489 | | Impairment losses | (520) | (349) | (286) | | | 300,026 | 283,497 | 243,203 | The increase in the year of the debt securities portfolio under the heading  'Financial assets at fair value with changes in other comprehensive income' is mainly due to the increase in exposure to sovereign debt, as a result of greater activity in the markets business, both its own and for distribution to clients. Likewise, the increase in the debt securities portfolio under the heading 'Financial assets at amortized cost' is due to the continuation of the strategy started in year 2022 in which two new business models were created for the optimization of excess liquidity and the management of the maturity of the balance sheet credit and deposit portfolios. At 31 December 2025 , 2024 and 2023 the gross exposure by impairment stage of the book assets amounted to EUR 196,509 million, EUR 196,514 million and EUR 176,697 million in stage 1; EUR 1,480 million, EUR 597 million and EUR 203 million in stage 2, and EUR 842 million, EUR 701 million and EUR 461 million in stage 3, respectively. In addition, at 31 December 2025, the Group had EUR 8 million (EUR 44 million at 31 December 2024) of exposure in assets purchased with impairments, which correspond mainly to the business combinations carried out by the Group with any additional impairment signs. Annual report 2025687 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### b) Breakdown The breakdown, by origin of the issuer, of debt securities at 31 December 2025, 2024 and 2023, net of impairment losses, is as follows: | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | EUR million | | | | | | | | | | | | | | | | | 2025 | | | | | 2024 | | | | | 2023 | | | | | | Private fixed- income | Public fixed- income | Total | % | | Private fixed- income | Public fixed- income | Total | % | | Private fixed- income | Public fixed- income | Total | % | | Spain | 2,528 | 63,742 | 66,270 | 22.09% | | 1,901 | 56,919 | 58,820 | 20.75% | | 2,525 | 40,321 | 42,846 | 17.62% | | United Kingdom | 2,336 | 9,227 | 11,563 | 3.85% | | 3,077 | 9,903 | 12,980 | 4.58% | | 2,816 | 4,748 | 7,564 | 3.11% | | Portugal | 3,212 | 5,627 | 8,839 | 2.95% | | 3,224 | 5,138 | 8,362 | 2.95% | | 2,826 | 4,815 | 7,641 | 3.14% | | Italy | 2,821 | 24,215 | 27,036 | 9.01% | | 3,072 | 22,954 | 26,026 | 9.18% | | 2,968 | 12,945 | 15,913 | 6.54% | | Ireland | 4,239 | 42 | 4,281 | 1.43% | | 4,557 | 14 | 4,571 | 1.61% | | 5,632 | 11 | 5,643 | 2.32% | | Poland | 22 | 1,465 | 1,487 | 0.50% | | 2,472 | 15,224 | 17,696 | 6.24% | | 2,937 | 12,482 | 15,419 | 6.34% | | Other European countries | 12,682 | 25,894 | 38,576 | 12.86% | | 11,593 | 12,702 | 24,295 | 8.57% | | 9,797 | 15,495 | 25,292 | 10.40% | | United States | 14,941 | 29,199 | 44,140 | 14.71% | | 12,475 | 27,811 | 40,286 | 14.21% | | 8,959 | 22,992 | 31,951 | 13.14% | | Brazil | 13,518 | 33,908 | 47,426 | 15.81% | | 12,738 | 32,645 | 45,383 | 16.01% | | 13,551 | 32,342 | 45,893 | 18.87% | | Mexico | 3,001 | 25,113 | 28,114 | 9.37% | | 2,190 | 20,822 | 23,012 | 8.12% | | 1,969 | 20,738 | 22,707 | 9.34% | | Chile | 137 | 8,567 | 8,704 | 2.90% | | 96 | 6,982 | 7,078 | 2.50% | | 49 | 11,995 | 12,044 | 4.95% | | Other American countries | 3,254 | 5,954 | 9,208 | 3.07% | | 3,336 | 4,502 | 7,838 | 2.76% | | 2,315 | 2,546 | 4,861 | 2.00% | | Rest of the world | 1,125 | 3,257 | 4,382 | 1.45% | | 1,100 | 6,050 | 7,150 | 2.52% | | 806 | 4,623 | 5,429 | 2.23% | | | 63,816 | 236,210 | 300,026 | 100% | | 61,831 | 221,666 | 283,497 | 100% | | 57,150 | 186,053 | 243,203 | 100% | The detail, by issuer rating, of Debt securities at 31 December 2025 , 2024 and 2023 is as follows: | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | EUR million | | | | | | | | | | | | | | | | | 2025 | | | | | 2024 | | | | | 2023 | | | | | | Private fixed- income | Public fixed- income | Total | % | | Private fixed- income | Public fixed- income | Total | % | | Private fixed- income | Public fixed- income | Total | % | | AAA | 15,952 | 9,320 | 25,272 | 8.42% | | 16,889 | 6,440 | 23,329 | 8.23% | | 15,152 | 7,887 | 23,039 | 9.47% | | AA | 19,598 | 42,451 | 62,049 | 20.68% | | 16,972 | 47,254 | 64,226 | 22.65% | | 15,142 | 36,704 | 51,846 | 21.32% | | A | 13,206 | 95,537 | 108,743 | 36.24% | | 10,056 | 87,814 | 97,870 | 34.53% | | 11,175 | 68,112 | 79,287 | 32.60% | | BBB | 6,872 | 50,066 | 56,938 | 18.98% | | 8,900 | 44,483 | 53,383 | 18.83% | | 7,749 | 39,173 | 46,922 | 19.29% | | Below BBB | 5,052 | 38,836 | 43,888 | 14.63% | | 5,543 | 35,675 | 41,218 | 14.54% | | 4,654 | 34,177 | 38,831 | 15.97% | | Unrated | 3,136 | — | 3,136 | 1.05% | | 3,471 | — | 3,471 | 1.22% | | 3,278 | — | 3,278 | 1.35% | | | 63,816 | 236,210 | 300,026 | 100% | | 61,831 | 221,666 | 283,497 | 100% | | 57,150 | 186,053 | 243,203 | 100% | During 2025, France's rating for sovereign issuances has been modified from AA- to A+. During 2024, Portugal's rating for sovereign issuances was modified from BBB+ to A-. For the year 2023, the distribution of the exposure by rating level of the previous table was not affected by ratings reviews of the sovereign issuers. Annual report 2025688 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The detail, by type of financial instrument, of private fixed-income securities at 31 December 2025 , 2024 and 2023, net of impairment losses, is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Securitised mortgage bonds | 10,514 | 10,709 | 9,310 | | Other asset-backed bonds | 14,073 | 11,624 | 10,243 | | Floating rate debt | 18,721 | 17,323 | 15,376 | | Fixed rate debt | 20,508 | 22,175 | 22,221 | | Total | 63,816 | 61,831 | 57,150 | #### c) Impairment losses The changes in the impairment losses on debt securities are summarised below: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Balance at beginning of year | 349 | 286 | 226 | | Net impairment losses for the yearA | 182 | 226 | 24 | | Of which: | | | | | Impairment losses charged to income | 238 | 234 | 36 | | Impairment losses reversed with a credit to income | (56) | (8) | (12) | | Assets written off | — | (131) | 0 | | Exchange differences and other items | (11) | (32) | 36 | | Balance at end of year | 520 | 349 | 286 | | Of which: | | | | | By geographical location of risk: | | | | | European Union | 26 | 23 | 22 | | America | 494 | 326 | 264 | A. Of the EUR 182 million corresponding to net provisions for the year ended 31 December 2025 (EUR 226 million and EUR 24 million at 31 December 2024 and 2023, respectively), EUR 182 million relates to financial assets at amortized cost (EUR 227 million and EUR 23 million at 31 December 2024 and 2023, respectively) and EUR 0 million relates to financial assets designated at fair value through other comprehensive income (EUR -1 million and EUR 1 million at 31 December 2024 and 2023 , respectively). At 31 December 2025, 2024 and 2023 the loan loss provision by impairment stage of the assets accounted for under IFRS9 amounted to EUR 62 million, EUR 39 million and EUR 30 million in stage 1, EUR 66 million, EUR 9 million and EUR 8 million in stage 2, and EUR 392 million, EUR 301 million and EUR 248 million in stage 3, respectively. 8. #### Equity instruments #### a) Breakdown The detail, by classification and type, of Equity instruments in the consolidated balance sheets is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Classification | | | | | Financial assets held for trading | 22,030 | 16,636 | 15,057 | | Non-trading financial assets mandatorily at fair value through profit or loss | 5,815 | 4,641 | 4,068 | | Financial assets designated at fair value through other comprehensive income | 2,281 | 2,193 | 1,761 | | | 30,126 | 23,470 | 20,886 | | Type | | | | | Shares of Spanish companies | 5,083 | 3,730 | 3,540 | | Shares of foreign companies | 21,633 | 17,153 | 15,185 | | Shares of investment funds | 3,410 | 2,587 | 2,161 | | | 30,126 | 23,470 | 20,886 | Note 29 contains a detail of the 'Other comprehensive income', recognised in equity, on 'Financial assets designated at fair value through other comprehensive income'. #### b) Changes The changes in 'Financial assets at fair value through other comprehensive income' were as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Balance at beginning of the year | 2,193 | 1,761 | 1,941 | | Net additions (disposals) | (81) | (35) | 11 | | Changes in the fair value of equity instruments measured at fair value through other comprehensive income (EIGR)A | 245 | 447 | (162) | | Changes in the RV hedged with micro-hedging transactions | (76) | 20 | (29) | | Balance at end of year | 2,281 | 2,193 | 1,761 | A. They do not include fair value movements for currency risk hedged with hedging instruments. #### c) Notifications of acquisitions of investments The notifications of the acquisitions and disposals of holdings in investees made by the Bank in 2025 , in compliance with Article 155 of the Spanish Limited Liability Companies Law and Article 105 of Spanish Securities Market Law 24/1998, are listed in appendix IV. Annual report 2025689 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 9. Trading derivatives (assets and #### liabilities) and short positions #### a) Trading Derivatives The detail, by type of inherent risk, of the fair value of the trading derivatives arranged by the Group is as follows (see note 11): | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | | | | | | | 2025 | | 2024 | | 2023 | | | | Debit balance | Credit balance | Debit balance | Credit balance | Debit balance | Credit balance | | Interest rate risk | 29,550 | 23,728 | 30,834 | 24,754 | 31,480 | 26,014 | | Currency risk | 24,755 | 20,508 | 29,395 | 29,110 | 22,834 | 23,094 | | Price risk | 1,858 | 2,279 | 1,765 | 1,632 | 1,279 | 904 | | Other risks | 2,192 | 5,453 | 2,106 | 2,257 | 735 | 577 | | | 58,355 | 51,968 | 64,100 | 57,753 | 56,328 | 50,589 | #### b) Short positions Following is a breakdown of the short positions (liabilities): | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Borrowed securities | | | | | Debt instruments | 2,938 | 2,566 | 3,263 | | Of which: | | | | | Banco Santander, S.A. | 1,555 | 1,347 | 1,383 | | Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México | 1,358 | 1,199 | 1,881 | | Equity instruments | 690 | 538 | 546 | | Of which: | | | | | Banco Santander, S.A. | 429 | 358 | 312 | | Short sales | | | | | Debt instruments | 40,387 | 32,726 | 22,365 | | Of which: | | | | | Banco Santander, S.A. | 28,710 | 23,813 | 16,143 | | Banco Santander (Brasil) S.A. | 7,417 | 5,950 | 3,462 | | Santander US Capital Markets LLC | 3,396 | 2,382 | 2,442 | | | 44,015 | 35,830 | 26,174 | 10. #### Loans and advances to customers #### a) Detail The detail, by classification, of Loans and advances to customers in the consolidated balance sheets is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Financial assets held for trading | 32,766 | 26,591 | 11,634 | | Non-trading financial assets mandatorily at fair value through profit or loss | 1,701 | 1,042 | 982 | | Financial assets designated at fair value through profit or loss | 4,739 | 4,610 | 6,219 | | Financial assets at fair value through other comprehensive income | 12,906 | 10,784 | 7,669 | | Financial assets at amortized cost | 985,176 | 1,011,042 | 1,009,845 | | Of which: | | | | | Impairment losses | (21,158) | (22,125) | (22,788) | | | 1,037,288 | 1,054,069 | 1,036,349 | | Loans and advances to customers disregarding impairment losses | 1,058,446 | 1,076,194 | 1,059,137 | Note 51 contains a detail of the residual maturity periods of 'Financial assets at amortized cost'. Note 54 shows the Group’s total exposure, by geographical origin of the issuer. There are no loans and advances to customers for material amounts without fixed maturity dates. Annual report 2025690 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### b) Breakdown Following is a breakdown of the loans and advances granted to the Group's customers, which reflect the Group's exposure to credit risk in its main activity, without considering the balance of value adjustments for impairment, taking into account the type and situation of the transactions, the geographical area of their residence and the type of interest rate on the transactions: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Loan type and status | | | | | Commercial credit | 51,110 | 53,209 | 55,628 | | Secured loans | 530,749 | 557,463 | 554,375 | | Reverse repurchase agreements | 73,980 | 59,648 | 44,184 | | Other term loans | 295,998 | 296,339 | 295,485 | | Finance leases | 38,540 | 40,120 | 38,723 | | Receivable on demand | 10,313 | 10,756 | 12,277 | | Credit cards receivables | 26,179 | 24,928 | 24,371 | | Impaired assets | 31,577 | 33,731 | 34,094 | | | 1,058,446 | 1,076,194 | 1,059,137 | | Geographical area | | | | | Spain | 198,894 | 198,164 | 203,680 | | Rest of Europe | 467,697 | 502,664 | 489,706 | | of which United Kingdom | 258,739 | 266,934 | 263,808 | | The Americas | 374,739 | 359,264 | 350,873 | | of which USA | 135,088 | 136,054 | 126,529 | | of which Brazil | 90,951 | 91,066 | 100,758 | | Rest of the world | 17,116 | 16,102 | 14,878 | | | 1,058,446 | 1,076,194 | 1,059,137 | | Interest rate formula | | | | | Fixed rate | 694,332 | 678,994 | 647,349 | | Floating rate | 364,114 | 397,200 | 411,788 | | | 1,058,446 | 1,076,194 | 1,059,137 | At 31 December 2025, 2024 and 2023 the Group had granted loans amounting to EUR 18,127 million, EUR 16,562 million and EUR 15,544 million to Spanish public sector agencies which had a rating at 31 December 2025 of A (ratings of A at 31 December 2024 and 31 December 2023 ), and EUR 16,248 million, EUR 13,593 million, and EUR 11,530 million to the public sector in other countries (at 31 December 2025, the breakdown of this amount by issuer rating was as follows: 3.6% AAA, 26.4% AA, 25.6% A, 27.5% BBB, 16.4% below BBB and 0.5% without rating). Without considering the public administrations, the amount of the loans and advances at 31 December 2025, 2024 and 2023 amounts to EUR 1,024,071 million, EUR 1,046,039 million and EUR 1,032,063 million, of which, EUR 954,533 million, EUR 1,012,389 million and EUR 998,010 million are classified as performing, respectively. Annual report 2025691 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Following is a detail, by activity, of the loans to customers at 31 December 2025, net of impairment losses: | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | EUR million | | | | | | | | | | | | | | | Secured loans | | | | | | | | | | | | Net exposure | | | Loan to value ratioC | | | | | | | Total | Without collateral | Of which property collateral | Of which other collateral | | Less than or equal to 40% | More than 40% and less than or equal to 60% | More than 60% and less than or equal to 80% | More than 80% and less than or equal to 100% | More than 100% | | Public sector | 29,607 | 28,423 | 153 | 1,031 | | 157 | 168 | 251 | 334 | 274 | | Other financial institutions (financial business activity) | 124,684 | 42,687 | 1,959 | 80,038 | | 2,045 | 995 | 424 | 77,935 | 598 | | Non-financial corporations and individual entrepreneurs (non-financial business activity) (broken down by purpose) | 318,284 | 179,529 | 63,124 | 75,631 | | 23,917 | 26,942 | 19,168 | 45,306 | 23,422 | | Of which: | | | | | | | | | | | | Construction and property development | 17,118 | 1,294 | 15,594 | 230 | | 4,963 | 6,921 | 1,890 | 1,164 | 886 | | Civil engineering construction | 2,522 | 1,732 | 19 | 771 | | 93 | 84 | 39 | 470 | 104 | | Large companies | 181,870 | 128,502 | 17,718 | 35,650 | | 7,177 | 6,666 | 6,157 | 25,459 | 7,909 | | SMEs and individual entrepreneurs | 116,774 | 48,001 | 29,793 | 38,980 | | 11,684 | 13,271 | 11,082 | 18,213 | 14,523 | | Households – other (broken down by purpose) | 542,623 | 108,903 | 338,778 | 94,942 | | 100,584 | 126,917 | 113,075 | 55,214 | 37,930 | | Of which: | | | | | | | | | | | | Residential | 332,931 | 1,149 | 331,655 | 127 | | 90,170 | 116,264 | 97,858 | 25,944 | 1,546 | | Consumer loans | 192,576 | 104,388 | 1,667 | 86,521 | | 5,909 | 8,063 | 13,297 | 24,977 | 35,942 | | Other purposes | 17,116 | 3,366 | 5,456 | 8,294 | | 4,505 | 2,590 | 1,920 | 4,293 | 442 | | TotalA | 1,015,198 | 359,542 | 404,014 | 251,642 | | 126,703 | 155,022 | 132,918 | 178,789 | 62,224 | | Memorandum item | | | | | | | | | | | | Refinanced and restructured transactionsB | 18,151 | 5,546 | 6,896 | 5,709 | | 2,347 | 2,381 | 2,037 | 2,457 | 3,383 | A. In addition, the Group has granted advances to customers am ounting to EUR 22,090 million, bringing the total of loans and advances to EUR 1,037,288 million. B. Includes the net balance of the impairment of the accumulated value or accumulated losses in the fair value due to credit risk. C. The ratio is the carrying amount of the transactions at 31 December 2025 provided by the latest available appraisal value of the collateral. Note 54 contains information relating to the forborne loan portfolio. Annual report 2025692 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Following is the movement of the gross exposure broken down by impairment stage of loans and advances to customers recognised under 'Financial assets at amortised cost' and 'Financial assets at fair value through other comprehensive income' during 2025, 2024 and 2023: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | 2025 | | | | | | EUR million | | | | | | | Stage 1 | Stage 2 | Stage 3 | Total | | Balance at the beginning of year | 925,413 | 84,455 | 33,568 | 1,043,436 | | Movements | | | | | | Transfers | | | | | | To stage 2 from stage 1 | (39,015) | 39,015 | | — | | To stage 3 from stage 1 | (12,097) | | 12,097 | — | | To stage 3 from stage 2 | | (8,266) | 8,266 | — | | To stage 1 from stage 2 | 16,079 | (16,079) | | — | | To stage 2 from stage 3 | | 1,764 | (1,764) | — | | To stage 1 from stage 3 | 441 | | (441) | — | | Net changes on financial assets | 69,819 | (12,940) | (4,436) | 52,443 | | Write-offs | — | — | (13,266) | (13,266) | | Exchange differences and others | (54,818) | (6,369) | (2,493) | (63,680) | | Balance at the end of the year | 905,822 | 81,580 | 31,531 | 1,018,933 | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | 2024 | | | | | | EUR million | | | | | | | Stage 1 | Stage 2 | Stage 3 | Total | | Balance at the beginning of year | 929,133 | 76,654 | 33,821 | 1,039,608 | | Movements | | | | | | Transfers | | | | | | To stage 2 from stage 1 | (49,316) | 49,316 | | — | | To stage 3 from stage 1 | (11,517) | | 11,517 | — | | To stage 3 from stage 2 | | (10,083) | 10,083 | — | | To stage 1 from stage 2 | 21,475 | (21,475) | | — | | To stage 2 from stage 3 | | 2,358 | (2,358) | — | | To stage 1 from stage 3 | 447 | | (447) | — | | Net changes on financial assets | 43,281 | (11,616) | (4,889) | 26,776 | | Write-offs | — | — | (13,212) | (13,212) | | Exchange differences and others | (8,090) | (699) | (947) | (9,736) | | Balance at the end of the year | 925,413 | 84,455 | 33,568 | 1,043,436 | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | 2023 | | | | | | EUR million | | | | | | | Stage 1 | Stage 2 | Stage 3 | Total | | Balance at the beginning of year | 942,861 | 66,696 | 32,617 | 1,042,174 | | Movements | | | | | | Transfers | | | | | | To stage 2 from stage 1 | (43,278) | 43,278 | | — | | To stage 3 from stage 1 | (12,636) | | 12,636 | — | | To stage 3 from stage 2 | | (9,915) | 9,915 | — | | To stage 1 from stage 2 | 15,180 | (15,180) | | — | | To stage 2 from stage 3 | | 2,899 | (2,899) | — | | To stage 1 from stage 3 | 488 | | (488) | — | | Net changes on financial assets | 29,696 | (10,673) | (4,218) | 14,805 | | Write-offs | — | — | (13,847) | (13,847) | | Exchange differences and others | (3,178) | (451) | 105 | (3,524) | | Balance at the end of the year | 929,133 | 76,654 | 33,821 | 1,039,608 | In addition, at 31 December 2025 , the Group had E UR 307 million (EUR 515 million at 31 December 2024 and EUR 694  million at 31 December 2023) of exposure in assets purchased with impairment of which EUR 46 million still show signs of additional impairment, which correspond mainly to the business combinations carried out by the Group. Annual report 2025693 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | c) Impairment losses on loans and advances to customers at amortised cost and at fair value through other comprehensive income The changes in the impairment losses on the assets making up the balances of financial assets at amortised cost and at fair value through other comprehensive income - Loans and advances - Customers: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Amount at beginning of the year | 22,125 | 22,788 | 22,684 | | Impairment losses charged to income for the year | 14,144 | 13,428 | 13,805 | | Of which: | | | | | Impairment losses charged to profit or loss | 24,935 | 22,761 | 20,608 | | Impairment losses reversed with a credit to profit or loss | (10,791) | (9,333) | (6,803) | | Change of perimeter | — | — | (48) | | Write-off of impaired balances against recorded impairment allowance | (13,266) | (13,212) | (13,847) | | Exchange differences and other changes | (1,845) | (879) | 194 | | Amount at end of the year | 21,158 | 22,125 | 22,788 | | Which correspond to: | | | | | Impaired assets | 13,527 | 14,088 | 14,238 | | Other assets | 7,631 | 8,037 | 8,550 | | Of which: | | | | | Individually calculated | 2,359 | 2,258 | 2,951 | | Collective calculated | 18,799 | 19,867 | 19,837 | In addition, provisions for debt securities amounting to EUR 182 million were recorded at 31 December 2025 (provisions amounting to EUR 226 million and EUR 24 million as of 31 December 2024 and 2023, respectively), written-off assets recoveries have been recorded in the year amounting to EUR 1,791 million at 31 December 2025 (EUR 1,600 million and EUR 1,587 million at 31 December 2024 and 2023, respectively). With this, the impairment recorded in Impairment or reversal of impairment at financial assets not measured at fair value through profit or loss and net gains and losses from changes: 'Financial assets at fair value through other comprehensive income' and 'Financial assets at amortised cost (IFRS 9) and, Loans and receivables (IAS 39)'; amounts EUR 12,535 million at 31 December 2025 (EUR 12,136 million and EUR 12,298 million at 31 December 2024 and 2023, respectively). Following is the movement of the loan loss provision broken down by impairment stage of loans and advances to customers during 2025, 2024 and 2023: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | 2025 | | | | | | EUR million | | | | | | | Stage 1 | Stage 2 | Stage 3 | Total | | Loss allowance at the beginning of the year | 3,293 | 4,744 | 14,088 | 22,125 | | Transfers | | | | | | To stage 2 from stage 1 | (847) | 2,734 | | 1,887 | | To stage 3 from stage 1 | (701) | | 4,931 | 4,230 | | To stage 3 from stage 2 | | (1,189) | 2,760 | 1,571 | | To stage 1 from stage 2 | 82 | (466) | | (384) | | To stage 2 from stage 3 | | 177 | (344) | (167) | | To stage 1 from stage 3 | 16 | | (59) | (43) | | Net changes of the exposure and modifications in the credit risk | 1,269 | (800) | 6,581 | 7,050 | | Write-offs | — | — | (13,266) | (13,266) | | FX and other movements | (112) | (569) | (1,164) | (1,845) | | Loss allowance at the end of the year | 3,000 | 4,631 | 13,527 | 21,158 | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | 2024 | | | | | | EUR million | | | | | | | Stage 1 | Stage 2 | Stage 3 | Total | | Loss allowance at the beginning of the year | 3,596 | 4,954 | 14,238 | 22,788 | | Transfers | | | | | | To stage 2 from stage 1 | (626) | 2,676 | | 2,050 | | To stage 3 from stage 1 | (385) | | 4,548 | 4,163 | | To stage 3 from stage 2 | | (1,591) | 3,444 | 1,853 | | To stage 1 from stage 2 | 109 | (725) | | (616) | | To stage 2 from stage 3 | | 278 | (693) | (415) | | To stage 1 from stage 3 | 23 | | (156) | (133) | | Net changes of the exposure and modifications in the credit risk | 755 | (704) | 6,655 | 6,706 | | Write-offs | — | — | (13,212) | (13,212) | | FX and other movements | (179) | (144) | (736) | (1,059) | | Loss allowance at the end of the year | 3,293 | 4,744 | 14,088 | 22,125 | Annual report 2025694 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | 2023 | | | | | | EUR million | | | | | | | Stage 1 | Stage 2 | Stage 3 | Total | | Loss allowance at the beginning of the year | 3,626 | 5,127 | 13,931 | 22,684 | | Transfers | | | | | | To stage 2 from stage 1 | (696) | 2,954 | | 2,258 | | To stage 3 from stage 1 | (405) | | 4,278 | 3,873 | | To stage 3 from stage 2 | | (1,820) | 3,721 | 1,901 | | To stage 1 from stage 2 | 149 | (905) | | (756) | | To stage 2 from stage 3 | | 282 | (920) | (638) | | To stage 1 from stage 3 | 27 | | (184) | (157) | | Net changes of the exposure and modifications in the credit risk | 875 | (557) | 7,212 | 7,530 | | Write-offs | — | — | (13,847) | (13,847) | | FX and other movements | 20 | (127) | 47 | (60) | | Loss allowance at the end of the year | 3,596 | 4,954 | 14,238 | 22,788 | d) Impaired assets and assets with unpaid past- #### due amounts The detail of the changes in the balance of the financial assets classified as 'Financial assets Loans to customers' considered to be impaired due to credit risk is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Balance at beginning of year | 33,731 | 34,094 | 32,888 | | Net additions | 13,648 | 13,779 | 14,944 | | Written-off assets | (13,266) | (13,212) | (13,847) | | Changes in the scope of consolidation | — | 17 | (59) | | Exchange differences and other | (2,536) | (947) | 168 | | Balance at end of year | 31,577 | 33,731 | 34,094 | This amount, after deducting the related allowances, represents the Group’s best estimate of the discounted value of the flows that are expected to be recovered from the impaired assets. At 31 December 2025, the Group’s written-off assets totalled EUR 51,435 million (EUR 49,939 million and EUR 48,138 million at 31 December 2024 and 2023, respectively). Set forth below for each class of impaired asset are the gross amount, associated allowances and information relating to the collateral and/or other credit enhancements obtained at 31 December 2025: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | Gross amount | Allowance recognised | Estimated collateral valueA | | Without associated real collateral | 13,846 | 8,133 | — | | With real estate collateral | 7,777 | 1,759 | 5,657 | | With other collateral | 9,954 | 3,635 | 5,424 | | Total | 31,577 | 13,527 | 11,081 | A. Including the estimated value of the collateral associated with each loan. Accordingly, any other cash flows that may be obtained, such as those arising from borrowers’ personal guarantees, are not included. When classifying assets in the previous table, the main factors considered by the Group to determine whether an asset has become impaired are the existence of amounts past due —assets impaired due to arrears— or other circumstances that may arise which will not result in all contractual cash flows being recovered, such as a deterioration of the borrower’s financial situation, the worsening of its capacity to generate funds or difficulties experienced by it in accessing credit. #### e) Transferred credits 'Loans and advances to customers' includes, inter alia, the securitised loans transferred to third parties on which the Group has retained the risks and rewards, albeit partially, and which therefore, in accordance with the applicable accounting standards, cannot be derecognised. This is mainly due to mortgage loans, loans to companies and consumer loans in which the group retains subordinate financing and/or grants some kind of credit enhancement to new holders. Securitisation is used as a tool for the management of regulatory capital and as a means of diversifying the Group's liquidity sources. The breakdown of securitized loans held on the balance sheet, according to the nature of the financial instrument in which they are originated, is shown below: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Retained on the balance sheet | 80,072 | 80,824 | 75,738 | | Of which | | | | | Securitised mortgage assets | 19,640 | 17,782 | 16,994 | | Of which: UK assets | 10,236 | 9,034 | 6,096 | | Other securitised assets | 60,432 | 63,042 | 58,744 | | TotalA | 80,072 | 80,824 | 75,738 | A. Note 22 details the liabilities associated with these securitisation transactions. At 31 December 2025, Grupo Santander had loans that had been fully derecognised and for which it retained servicing amounting to EUR 12,174 million (EUR 14,919 million and EUR 13,923 million at 31 December 2024 and 2023, respectively). Annual report 2025695 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 11. #### Trading derivatives The detail of the notional amounts and the market values of the trading derivatives held by the Group in 2025 , 2024 and 2023 is as follows: | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | EUR million | | | | | | | | | | | 2025 | | | 2024 | | | 2023 | | | | Notional amount | Market value | | Notional amount | Market value | | Notional amount | Market value | | Trading derivatives | | | | | | | | | | Interest rate risk | | | | | | | | | | Forward rate agreements | 1,995,070 | (32) | | 1,992,413 | 13 | | 829,913 | 3 | | Interest rate swaps | 6,166,278 | 6,324 | | 6,127,812 | 6,364 | | 5,381,966 | 5,514 | | Options, futures and other derivatives | 470,659 | (472) | | 377,285 | (297) | | 398,519 | (51) | | Credit risk | | | | | | | | | | Credit default swaps | 64,924 | (3,135) | | 41,111 | (572) | | 22,462 | (86) | | Foreign currency risk | | | | | | | | | | Foreign currency purchases and sales | 611,850 | 1,282 | | 514,268 | 595 | | 471,955 | 33 | | Foreign currency options | 160,421 | 441 | | 221,159 | 528 | | 77,934 | 288 | | Currency swaps | 682,350 | 2,526 | | 625,765 | (838) | | 586,405 | (581) | | Securities and commodities derivatives and other | 98,588 | (547) | | 78,328 | 554 | | 68,664 | 619 | | Total | 10,250,140 | 6,387 | | 9,978,141 | 6,347 | | 7,837,818 | 5,739 | 12.  Non-current assets held for sale and liabilities associated with non-current assets held for sale #### a) Breakdown The detail of Non-current assets held for sale in the consolidated balance sheets is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | 2025 | 2024 | 2023 | | Tangible assets | 2,850 | 2,851 | 2,991 | | Foreclosed assets | 2,487 | 2,621 | 2,773 | | Of which property assets in Spain | 1,705 | 1,896 | 2,138 | | Other tangible assets held for sale | 363 | 230 | 218 | | | | | | | Entities held for sale | 72,148 | 1,137 | — | | Caceis (Note 3) | — | 1,137 | — | | Santander Bank Polska S.A. (Note 3) | 72,148 | — | — | | | | | | | Other assets | 13 | 14 | 23 | | Total non-current assets held for sale | 75,011 | 4,002 | 3,014 | | | | | | | --- | --- | --- | --- | | | | | | | EUR million | 2025 | 2024 | 2023 | | Entities held for sale | | | | | Santander Bank Polska S.A. (Note 2) | 62,995 | — | — | | Total Liabilities associated with non- current assets held for sale | 62,995 | — | — | At 31 December 2025, the provisions recognised for the total non current ass ets held for sale totalled EUR 2,357 million (EUR 2,606 million and EUR 2,956 million at 31 December 2024 and 2023 , respectively). The charges recorded in those years amounted to EUR 131 million, EUR 163 million and EUR 139 million, respectively, and the recoveries during these exercises are amounted to EUR 59 million, EUR 71 million and EUR 88 million, respectively. b) Assets and liabilities from entities held for #### sale The following is the consolidated balance sheet and consolidated summary cash flow statements for the Polish business held for sale: | | | | --- | --- | | | | | EUR million | | | Condensed consolidated balance sheet | 2025 | | Cash, cash balances at central banks and other deposits on demand | 2,515 | | Financial assets held for trading | 1,956 | | Financial assets designated at fair value through other comprehensive income | 8,173 | | Financial assets at amortised cost | 55,642 | | Intangible assets | 1,335 | | Tax assets | 1,224 | | Other assets | 1,303 | | Total assets | 72,148 | Annual report 2025696 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | --- | --- | | | | | EUR million | | | Condensed consolidated balance sheet | 2025 | | Financial liabilities held for trading | 842 | | Financial liabilities at amortised cost | 59,704 | | Provisions | 603 | | Tax liabilities | 1,335 | | Other liabilities | 511 | | Total liabilities | 62,995 | | | | | --- | --- | | | | | EUR million | | | Other comprehensive income | 2025 | | Items that will not be reclassified to profit or loss | 56 | | Actuarial gains or losses on defined benefit pension plans | — | | Changes in the fair value of equity instruments measured at fair value through other comprehensive income | 56 | | Items that may be reclassified to profit or loss | (590) | | Hedges of net investments in foreign operations (effective portion) | (522) | | Exchange differences | (164) | | Cash flow hedges (effective portion) | 98 | | Debt instruments at fair value with changes in other comprehensive income | 8 | | Share in other income and expenses recognised in investments, joint ventures and associates | (10) | | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | Condensed consolidated statements of cash flows | 2025 | 2024 | 2023 | | A) Cash flows from operating activities | 1,405 | 1,705 | 352 | | B) Cash flows from investing activities | (98) | (96) | (91) | | C) Cash flows from financing activities | (1,301) | (1,194) | (591) | | D) Effect of foreign exchange rate differences | 20 | 27 | 143 | | E) Net increase/(decrease) in cash and cash equivalents | 26 | 442 | (187) | At 31 December 2025, the  written-off assets totalled EUR 2,339 million from the Polish business held for sale. Consistent with the Group´s management model, the amounts related to the business held for sale in Poland are primarily reported within the Retail & Commercial Banking segment for primary segment information purposes. Additionally, a separate breakdown for the Poland geography is presented as a secondary segment. In addition, see the consolidated summary profit and loss accounts for the business for sale in Poland in Note 37. 13. #### Investments #### a) Breakdown The detail, by company, of Investments is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Associated entities | 5,096 | 5,216 | 5,682 | | Merlin Properties, SOCIMI, S.A.A | 1,830 | 1,803 | 1,621 | | Zurich Santander Insurance America, S.L. - Consolidated | 940 | 884 | 936 | | Metrovacesa, S.A. | 748 | 841 | 899 | | CNP Santander | 399 | 397 | 423 | | Pluxee Beneficios Brasil S.A. A | 295 | 309 | — | | Caceis (Notes 3 and 12) | — | — | 1,139 | | Other companies | 884 | 982 | 664 | | | | | | | Joint Ventures entities | 1,956 | 2,061 | 1,964 | | Santander Caceis Latam Holding 1, S.L. - Consolidated (previously Santander Securities Services Latam Holding, S.L) | 404 | 381 | 389 | | Santander Vida Seguros y Reaseguros, S.A. | 329 | 356 | 362 | | U.C.I., S.A. - Consolidated | 293 | 325 | 349 | | Fortune Auto Finance Co., Ltd | 232 | 261 | 254 | | Hyundai Capital UK Limited | 270 | 249 | 205 | | Volvo Car Financial Services UK Limited | 116 | 99 | 76 | | Banco RCI Brasil S.A. | 77 | 94 | 92 | | Other companies | 235 | 296 | 237 | | | | | | | Total Associated entities and Joint ventures | 7,052 | 7,277 | 7,646 | A. Acquisition of 20% of Pluxee Beneficios Brasil S.A. and capital increase of Merlin Properties, SOCIMI, S.A., both carried out in 2024. Of the entities included above, at 31 December 2025 , the entities Merlin Properties, SOCIMI, S.A, and Metrovacesa, S.A. and Compañía Española de Viviendas en Alquiler, S.A., are the only listed companies. Annual report 2025697 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Below is a breakdown of the Goodwill of the main investments in joint ventures and associates included in the balance of this heading: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Goodwill | 1,096 | 1,238 | 1,460 | | Of which: | | | | | Zurich Santander Insurance America, S.L. - Consolidated | 526 | 526 | 526 | | Pluxee Beneficios Brasil S.A.A | 71 | 122 | — | | Caceis (Notes 3 and 12) | — | — | 337 | A. Acquisition of 20% of Pluxee Beneficios Brasil S.A. in 2024. #### b) Changes The changes in the investments were as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Balance at beginning of year | 7,277 | 7,646 | 7,615 | | Acquisitions (disposals) of companies and capital increases (reductions)A | (17) | 1,011 | 52 | | Changes in the consolidation method (Note 3) | 15 | (13) | (43) | | Entities for sale (Notes 3 y 12)B | (168) | (1,137) | — | | Effect of equity accounting | 665 | 687 | 591 | | Dividends distributed and reimbursements of share premium | (694) | (745) | (565) | | Of which: | | | | | Zurich Santander Insurance América, S.L. - Consolidado | (206) | (202) | (202) | | Metrovacesa, S.A. | (118) | (52) | (50) | | Santander Vida Seguros y Reaseguros, S.A.- Consolidated | (87) | (82) | (52) | | Merlin Properties, SOCIMI, S.A. | (57) | (53) | (51) | | CNP Santander | (54) | (88) | (51) | | CIP S.A. | (16) | (56) | — | | Caceis | — | (114) | — | | Hyundai Capital UK Limited | — | — | (58) | | Other global result | 28 | (32) | (24) | | Exchange differences and other changes | (54) | (140) | 20 | | Balance at end of year | 7,052 | 7,277 | 7,646 | A. Includes the acquisition of 20% of Pluxee Beneficios Brasil S.A. and the capital increase of Merlin Properties, SOCIMI, S.A carried out in 2024. B. Stakes of Santander Bank Polska S.A. and Caceis (Notes 3 and 12). c) Impairment adjustments During the years 2025, 2024 and 2023 there was no evidence of significant impairment in the Group's associated interests. Annual report 2025698 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### d) Other information A summary of the financial information at the end of December 2025 of the main associates and joint ventures (obtained from the information available at the date of preparation of the consolidated financial statements) is shown below: | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | EUR million | | | | | | | | | | | | | | | Associates | | | | | | Joint ventures | | | | | | | | Merlin Properties, SOCIMI, S.A.A | Metrovacesa, S.A.A | Pluxee Benefici os Brasil S.A. | Zurich Santander Insurance América, S.L. - Consolidated | CNP Santander | | Santander Caceis Latam Holding, S.L. - Consolidated | U.C.I., S.A. - Consolidated | Hyundai Capital UK Limited | Fortune Auto Finance Co., LTD | Santander Vida Seguros y Reaseguros, S.A.- Consolidated (note 3) | Banco RCI Brasil S.A. | | Current assets | 1,701 | 2,025 | 689 | 2,434 | 165 | | 201 | 397 | 2,022 | 167 | 157 | 10 | | Non current assets | 11,758 | 389 | 652 | 20,190 | 2,139 | | 579 | 8,876 | 3,665 | 1,933 | 1,710 | 2,221 | | Total assets | 13,459 | 2,414 | 1,341 | 22,624 | 2,304 | | 780 | 9,273 | 5,687 | 2,100 | 1,867 | 2,231 | | Current liabilities | 840 | 507 | 254 | 657 | 186 | | 315 | 6,930 | 3,685 | 10 | 140 | 112 | | Non current liabilities | 5,118 | 310 | 578 | 21,021 | 1,726 | | 35 | 1,715 | 1,480 | 1,627 | 1,243 | 1,924 | | Total liabilities | 5,958 | 817 | 832 | 21,678 | 1,912 | | 350 | 8,645 | 5,165 | 1,637 | 1,383 | 2,036 | | Attributable profit for the period | 284 | 16 | 87 | 534 | 101 | | 97 | (75) | 77 | 20 | 145 | 54 | | Other accumulated comprehensive income | (11) | — | — | (33) | (9) | | — | 114 | (1) | — | (21) | 4 | | Rest of equity | 7,228 | 1,581 | 422 | 445 | 300 | | 333 | 589 | 446 | 443 | 360 | 137 | | Total Equity | 7,501 | 1,597 | 509 | 946 | 392 | | 430 | 628 | 522 | 463 | 484 | 195 | | Total liabilities and equity | 13,459 | 2,414 | 1,341 | 22,624 | 2,304 | | 780 | 9,273 | 5,687 | 2,100 | 1,867 | 2,231 | | | | | | | | | | | | | | | | Ordinary activities income | 544 | 658 | 457 | 4,559 | 568 | | 163 | 499 | 426 | 159 | 907 | 312 | | Profit (loss) from continuing operations | 284 | 16 | 87 | 534 | 101 | | 97 | (75) | 77 | 20 | 145 | 54 | | Profit (loss) for the year from discontinuing operations | — | — | — | — | — | | — | — | — | — | — | — | A. Data as of 31 December 2024, latest accounts available. 14. #### Insurance contracts linked to pensions The detail of Insurance contracts linked to pensions in the consolidated balance sheets is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Assets relating to insurance contracts covering post- employment benefit plan obligations: | | | | | Banco Santander, S.A. | 67 | 81 | 93 | | | 67 | 81 | 93 | Annual report 2025699 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 15. #### Liabilities under insurance contracts The detail of Liabilities under insurance contracts and reinsurance assets in the consolidated balance sheets (see note 2.i) is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Liabilities under insurance contracts | 18,737 | 17,829 | 17,799 | | Liability for Remaining Coverage (LRC) | 18,291 | 17,377 | 17,333 | | Liabilities relating to insurance contracts measured under BBA/VFA | 18,194 | 17,292 | 17,262 | | Current value of future cashflows (PVFCF) | 17,461 | 16,614 | 16,627 | | Risk adjustment for non-financial risk (RA) | 186 | 199 | 211 | | Contractual service margin (CSM) | 547 | 479 | 424 | | Liabilities relating to insurance contracts measured under PAA | 97 | 85 | 71 | | Liability for incurred claims (LIC) | 446 | 452 | 466 | The balance of liabilities under insurance contracts reflected in the consolidated balance sheet includes the following elements: • Liability for Remaining Coverage (LRC): amount of obligations provisioned to meet the fulfilment of future services assigned to the group on a date for a specific coverage period. • Liabilities relating to insurance contracts measured under BBA/ VFA, formed from the sum of the following elements: - Current value of future cashflows (PVFCF): present value of future inflow and outflow cash flows weighted by their probability of occurrence. - Risk adjustment for non-financial risk (RA): reflects compensation for the uncertainty of cash flows by quantifying the amount necessary to compensate for unexpected losses in liability flows. - Contractual service margin (CSM): future benefit to be recognized during the coverage period. • Liabilities relating to insurance contracts measured under PAA, valued using the premium allocation method, represent the portion of premiums written for the remaining hedge net of acquisition expenses. • Liability for Incurred Claims (LIC): amount of obligations provisioned to meet the fulfilment of past services assigned to the group on a date. The insurance activity is carried out mainly in the life insurance sector in its life-savings modality. Within the amount of liabilities for insurance contracts, Individual Life Annuities are the product that has the greatest weight in the consolidated balance sheet. This product consists of life annuities where the client contributes a single premium and receives a constant and periodic insured income (monthly, quarterly, semi-annual or annual) until his death where, at that time, the beneficiaries will receive the insured capital of 102% or 101% of the premium contributed. The income and expenses recorded in the profit and loss account for the insurance activity, including reinsurance income and expenses, are not material in the Group's consolidated annual accounts. Annual report 2025700 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 16. #### Tangible assets #### a) Changes The changes in Tangible assets in the consolidated balance sheets were as follows: | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | EUR million | | | | | | | | | | | | Tangible assets | | | | | Of which: For leasing | | | | | | For own use | Leased out under an operating lease | Investment property | Total | | For own use | Leased out under an operating lease | Investment property | Total | | Cost | | | | | | | | | | | Balance at 1 January 2023 | 26,570 | 25,166 | 1,580 | 53,316 | | 4,692 | — | — | 4,692 | | Additions / disposals (net) due to change in the scope of consolidation | 11 | 37 | — | 48 | | (13) | — | — | (13) | | Additions / disposals (net) | 1,122 | 742 | (34) | 1,830 | | 125A | — | — | 125 | | Transfers, exchange differences and other items | (1,460) | (641) | 30 | (2,071) | | 33 | — | — | 33 | | Balance at 31 December 2023 | 26,243 | 25,304 | 1,576 | 53,123 | | 4,837 | — | — | 4,837 | | Additions / disposals (net) due to change in the scope of consolidation | 28 | (1,192) | — | (1,164) | | — | — | — | — | | Additions / disposals (net) | 730 | (1,716) | (17) | (1,003) | | 179A | — | — | 179 | | Transfers, exchange differences and other items | (1,345) | 1,003 | (104) | (446) | | (235) | — | — | (235) | | Balance at 31 December 2024 | 25,656 | 23,399 | 1,455 | 50,510 | | 4,781 | — | — | 4,781 | | Additions / disposals (net) due to change in the scope of consolidation | 4 | — | 7 | 11 | | — | — | — | — | | Additions / disposals (net) | 326 | (2,603) | (58) | (2,335) | | (40)A | — | — | (40) | | Transfers, exchange differences and other items | (1,845) | (1,743) | 188 | (3,400) | | (450) | — | — | (450) | | Balance at 31 December 2025 | 24,141 | 19,053 | 1,592 | 44,786 | | 4,291 | — | — | 4,291 | | | | | | | | | | | | | Accumulated depreciation | | | | | | | | | | | Balances at 1 January 2023 | (12,892) | (5,578) | (172) | (18,642) | | (2,265) | — | — | (2,265) | | Disposals due to change in the scope of consolidation | 7 | — | — | 7 | | 7 | — | — | 7 | | Disposals | 284 | 2,540 | — | 2,824 | | 160 | — | — | 160 | | Charge for the year | (1,689) | — | (11) | (1,700) | | (580) | — | — | (580) | | Transfers, exchange differences and other items | 1,653 | (2,744) | (16) | (1,107) | | 69 | — | — | 69 | | Balance at 31 December 2023 | (12,637) | (5,782) | (199) | (18,618) | | (2,609) | — | — | (2,609) | | Disposals due to change in the scope of consolidation | — | 686 | — | 686 | | — | — | — | — | | Disposals | 672 | 3,214 | — | 3,886 | | 196 | — | — | 196 | | Charge for the year | (1,544) | — | (9) | (1,553) | | (460) | — | — | (460) | | Transfers, exchange differences and other items | 890 | (2,902) | 46 | (1,966) | | 59 | — | — | 59 | | Balance at 31 December 2024 | (12,619) | (4,784) | (162) | (17,565) | | (2,814) | — | — | (2,814) | | Disposals due to change in the scope of consolidation | — | — | — | — | | — | — | — | — | | Disposals | 663 | 2,428 | — | 3,091 | | 177 | — | — | 177 | | Charge for the year | (1,323) | — | (8) | (1,331) | | (405) | | — | (405) | | Transfers, exchange differences and other items | 1,150 | (1,917) | (32) | (799) | | 381 | — | — | 381 | | Balance at 31 December 2025 | (12,129) | (4,273) | (202) | (16,604) | | (2,661) | — | — | (2,661) | A. Includes contract extensions on operating leases and repurchases. Annual report 2025701 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | EUR million | | | | | | | | | | | | Tangible assets | | | | | Of which: For leasing | | | | | | For own use | Leased out under an operating lease | Investment property | Total | | For own use | Leased out under an operating lease | Investment property | Total | | Impairment losses | | | | | | | | | | | Balance at 1 January 2023 | (189) | (33) | (379) | (601) | | (14) | — | — | (14) | | Impairment charge for the year | (113) | (29) | (12) | (154) | | (38) | — | — | (38) | | Releases | 4 | 11 | 4 | 19 | | 3 | — | — | 3 | | Disposals due to change in the scope of consolidation | — | — | — | — | | — | — | — | — | | Disposals | 36 | — | 4 | 40 | | 5 | | | 5 | | Exchange differences and other | 64 | 47 | (38) | 73 | | (1) | — | — | (1) | | Balance at 31 December 2023 | (198) | (4) | (421) | (623) | | (45) | — | — | (45) | | Impairment charge for the year | (276) | (70) | (81) | (427) | | (31) | — | — | (31) | | Releases | 34 | 3 | 8 | 45 | | 10 | — | — | 10 | | Disposals due to change in the scope of consolidation | — | — | — | — | | — | — | — | — | | Disposals | 53 | — | — | 53 | | 19 | — | — | 19 | | Exchange differences and other | (14) | 32 | 76 | 94 | | (2) | — | — | (2) | | Balance at 31 December 2024 | (401) | (39) | (418) | (858) | | (49) | — | — | (49) | | Impairment charge for the year | (172) | (79) | (15) | (266) | | (41) | — | — | (41) | | Releases | 41 | 71 | 25 | 137 | | 1 | — | — | 1 | | Disposals due to change in the scope of consolidation | — | — | — | — | | — | — | — | — | | Disposals | 17 | 17 | — | 34 | | 6 | — | — | 6 | | Exchange differences and other | 166 | 3 | 40 | 209 | | 9 | — | — | 9 | | Balance at 31 December 2025 | (349) | (27) | (368) | (744) | | (74) | — | — | (74) | | | | | | | | | | | | | Tangible assets, net | | | | | | | | | | | Balances at 31 December 2023 | 13,408 | 19,518 | 956 | 33,882 | | 2,183 | — | — | 2,183 | | Balances at 31 December 2024 | 12,636 | 18,576 | 875 | 32,087 | | 1,918 | — | — | 1,918 | | Balances at 31 December 2025 | 11,663 | 14,753 | 1,022 | 27,438 | | 1,556 | — | — | 1,556 | Annual report 2025702 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### b) Tangible assets - For own use The detail, by class of asset, of 'Property, plant and equipment' which is owned by the Group in the consolidated balance sheets is as follows: | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | EUR million | | | | | | | | Tangible assets for own use | | | | Of which: for leasing | | | Cost | Accumulated depreciation | Impairment losses | Carrying amount | | Land and buildings | 14,973 | (5,010) | (154) | 9,809 | 2,104 | | IT equipment and fixtures | 5,614 | (4,154) | — | 1,460 | 60 | | Furniture and vehicles | 5,412 | (3,424) | — | 1,988 | 19 | | Construction in progress and other items | 244 | (49) | (44) | 151 | — | | Balance at 31 December 2023 | 26,243 | (12,637) | (198) | 13,408 | 2,183 | | | | | | | | | Land and buildings | 15,113 | (5,516) | (353) | 9,244 | 1,882 | | IT equipment and fixtures | 5,283 | (3,926) | — | 1,357 | 23 | | Furniture and vehicles | 4,963 | (3,130) | — | 1,833 | 13 | | Construction in progress and other items | 297 | (47) | (48) | 202 | — | | Balance at 31 December 2024 | 25,656 | (12,619) | (401) | 12,636 | 1,918 | | | | | | | | | Land and buildings | 14,067 | (5,359) | (304) | 8,404 | 1,536 | | IT equipment and fixtures | 4,204 | (3,003) | (10) | 1,191 | 13 | | Furniture and vehicles | 5,548 | (3,746) | (1) | 1,801 | 7 | | Construction in progress and other items | 322 | (21) | (34) | 267 | — | | Balance at 31 December 2025 | 24,141 | (12,129) | (349) | 11,663 | 1,556 | The carrying amount at 31 December 2025 in the foregoing table includes the following approximate amounts EUR 6,545 million (EUR 6,531 million at 31 December 2024 and EUR 7,119 million at 31 December 2023) relating to property, plant and equipment owned by group entities and branches located abroad. #### c) Tangible assets - Leased out under an #### operating lease Grupo Santander has assets leased out under operating leases where the company is the lessor and do not meet the accounting requirements to be classified as finance leases. The net cost of these leases is recorded as an asset and depreciated on a straight- line basis over the contractual term of the lease to the expected residual value. The expected residual value and, consequently, the monthly depreciation expense may change during the term of the lease. The Group estimates expected residual values using independent data sources and internal statistical models. It also assesses the estimate of the residual value of these leases and adjusts the depreciation rate in line with the change in the expected value of the asset at the end of the lease. Grupo Santander periodically assesses its investment in operating leases for impairment in certain circumstances, such as a systemic and material decrease in the values of used vehicles. If assets leased out under operating leases are deemed to be impaired, impairment is measured as the amount by which the carrying amount of the assets exceeds the fair value as estimated by discounted cash flows. Of the 14,753 EUR million that the Group had assigned to operating leases at 31 December 2025 (18,576 EUR and 19,518 EUR at 31 December 2024  and 2023, respectively), EUR 7,227 million (EUR 11,336 and EUR 12,525 at 31 December 2024 and 2023, respectively) relate to vehicles of Santander US Auto's business. The variable lease payments of various items of this business are not significant. In addition, the maturity analysis of the assets leased out under operating leases from Santander US Auto, is as follows: | | | | --- | --- | | | | | EUR million | | | | | | Maturity Analysis | 2025 | | 2025 | 3,988 | | 2026 | 4,228 | | 2027 | 1,332 | | 2028 | 330 | #### d) Tangible assets - Investment property The fair value of investment property at 31 December 2025, 2024, 2023 amounted to EUR 1,194, 1,041 and 1,163 million, respectively. A comparison of the fair value of investment property at 31 December 2025, 2024 and 2023 with the net book value shows gross unrealised gains of EUR 172, 166 and 207 million, respectively, attributed completely to the group. The rental income earned from investment property and the direct costs related both to investment properties that generated rental income in 2025, 2024 and 2023 and to investment properties that did not generate rental income in those years are not material in the context of the consolidated financial statements. Annual report 2025703 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 17. #### Intangible assets – Goodwill The detail of goodwill, based on the cash-generating units giving rise thereto, is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Banco Santander (Brasil) | 3,031 | 3,079 | 3,679 | | SAM Investment Holdings Limited | 1,444 | 1,444 | 1,444 | | Santander Consumer Germany | 1,304 | 1,304 | 1,304 | | Santander Portugal | 1,040 | 1,040 | 1,040 | | Santander España | 998 | 998 | 998 | | Santander US Auto | 943 | 1,068 | 1,003 | | Santander Holding USA (ex. Auto) | 765 | 865 | 814 | | Santander UK | 609 | 641 | 612 | | Banco Santander - Chile | 470 | 482 | 516 | | Grupo Financiero Santander (México) | 463 | 453 | 523 | | Ebury Partners | 326 | 340 | 350 | | Santander Consumer Nordics | 211 | 211 | 206 | | Santander Bank Polska | — | 1,178 | 1,159 | | Other companies | 354 | 335 | 369 | | Total Goodwill | 11,958 | 13,438 | 14,017 | The changes in goodwill were as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Balance at beginning of year | 13,438 | 14,017 | 13,741 | | Additions | 19 | 30 | 56 | | Of which: | | | | | Ebury Partners | — | — | 45 | | Impairment losses | (4) | (4) | (20) | | Transfer to Assets held for sale (Notes 3 y 12) | (1,176) | — | — | | Exchange differences and other items | (291) | (605) | 240 | | Balance at end of year | 11,958 | 13,438 | 14,017 | Grupo Santander has goodwill generated by cash-generating units located in non-euro currency countries (mainly Brazil, Poland, the United States, the United Kingdom, Chile, Mexico, Norway and Sweden) and, therefore, this gives rise to exchange differences on the translation to euros, at closing rates, of the amounts of goodwill denominated in foreign currencies. Accordingly, in 2025 there was a decrease of EUR 291 million (a decrease of EUR 605 million in 2024 and an increase of EUR 240 million in 2023), due to exchange differences and other items which, pursuant to current standards, were recognised with a change to 'Other comprehensive income - Items that may be reclassified to profit or loss - Exchange differences in other comprehensive income in the consolidated statement of recognised income and expense' (see note 29.d). At least once per year (or whenever there is any indication of impairment), Grupo Santander performs an analysis of the potential impairment of its recorded goodwill with respect to its recoverable amount. The first step that must be taken in order to perform this analysis is the identification of the cash-generating units, which are the Group's smallest identifiable groups of assets that generate cash inflows that are largely independent of the cash flows of other assets or groups of assets. The amount to be recovered of each cash-generating unit is determined taking into consideration the carrying amount (including any fair value adjustment arising on the business combination) of all the assets and liabilities of all the independent legal entities composing the cash-generating unit, together with the related goodwill. The amount to be recovered of the cash-generating unit is compared with its recoverable amount in order to determine whether there is any impairment. Grupo Santander assesses the existence of any indication that might be considered to be evidence of impairment of the cash- generating unit by reviewing information including the following (i) certain macroeconomic variables that might affect its investments (population data, political situation, economic situation —including banking concentration level—, among others) and (ii) various microeconomic variables comparing the investments of the Group with the financial services industry of the country in which the cash-generating unit carries on most of its business activities (balance sheet composition, total funds under management, results, efficiency ratio, capital adequacy ratio, return on equity, among others). Regardless of whether there is any indication of impairment, every year the Group calculates the recoverable amount of each cash-generating unit to which goodwill, has been allocated and, to this end, it uses price quotations, market references (multiples), internal estimates and valuations performed by internal and external experts. Firstly, the Group determines the recoverable amount by calculating the fair value of each cash-generating unit on the basis of the quoted price of the cash-generating units, if available. In addition, the Group performs estimates of the recoverable amounts of certain cash-generating units by calculating their value in use using discounted cash flow projections. The main assumptions used in this calculation are (i) earnings projections based on the financial budgets approved by the Group’s directors which cover between three and five year periods (unless a longer time horizon can be justified), (ii) discount rates determined as the cost of capital taking into account the risk-free rate of return plus a risk premium in line with the market and the business in which the units operate and (iii) constant growth rates used in order to extrapolate earnings in perpetuity which do not exceed the long- term average growth rate for the market in which the cash- generating unit in question operates. The cash flow projections used by Group management to obtain the values in use are based on the financial budgets approved by both local management of the related local units and the Group’s directors. The Group’s budgetary estimation process is common for all the cash-generating units. The local management teams prepare their budgets using the following key assumptions: a)Microeconomic variables of the cash-generating unit: management takes into consideration the current balance sheet structure, the product mix and the business decisions taken by local management in this regard. Annual report 2025704 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | b)Macroeconomic variables: growth is estimated on the basis of the changing environment, taking into consideration expected GDP growth in the unit’s geographical location and forecast trends in interest and exchange rates. These data, which are based on external information sources, are provided by the Group’s economic research service. c)Past performance variables: in addition, management takes into consideration in the projection the difference (both positive and negative) between the cash-generating unit’s past performance and budgets. During 2025 , the Group has recognised impairment losses of EUR 4 million of immaterial goodwill that has been recorded under the heading 'Impairment or reversal of the impairment of non-financial assets - Intangible assets' (EUR 4 million and EUR 20 million in 2024 and 2023, respectively). Goodwill is deducted from CET1 for regulatory purposes, so an impairment of goodwill has no impact on the Group's capital ratios. Following is a detail of the main assumptions taken into account in determining the recoverable amount, at 2025 year-end, of the most significant cash-generating units which were valued using the discounted cash flow method: | | | | | | --- | --- | --- | --- | | | | | | | | 2025 | | | | | Projected period | Discount rateA | Nominal perpetual growth rate | | Santander UK | 5 years | 12.4% | 2.5% | | Santander US Auto | 3 years | 11.5% | 3.0% | | Santander Holding USA (ex. Auto)B | 5 years | 13.6% | 3.5% | | Santander Consumer Germany | 5 years | 9.5% | 2.5% | | SAM Investment Holdings, Limited | 5 years | 11.5% | 2.5% | | Santander Portugal | 5 years | 10.6% | 2.5% | A. Post-tax discount rate. B. Weighted information of the main assumptions of the segments to which goodwill has been allocated. The discount and nominal perpetual growth rates taken into account in 2024 and 2023 are presented below for comparison purposes: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | Discount rateA | | Nominal perpetual growth rate | | | | 2024 | 2023 | 2024 | 2023 | | Santander UK | 11.8% | 11.9% | 2.5% | 2.5% | | Santander Bank Polska | 12.9% | 13.2% | 5.0% | 5.0% | | Santander US Auto | 12.2% | 12.8% | 3.0% | 3.0% | | Santander Holding USA (ex. Auto)B | 13.4% | 13.4% | 3.5% | 3.5% | | Santander Consumer Germany | 9.1% | 9.7% | 2.0% | 2.3% | | SAM Investment Holdings, Limited | 11.6% | 11.6% | 2.5% | 2.5% | | Santander Portugal | 10.2% | 11.2% | 2.5% | 2.5% | A. Post-tax discount rate. B. Weighted information of the main assumptions of the segments to which goodwill has been allocated. The variations reflected in the assumptions used in 2025 are mainly a consequence of the current macroeconomic scenario, as well as the level of inflation. Given the degree of uncertainty of the above key assumptions on which the recoverable amount of the cash-generating units is based, the Group performs a sensitivity analysis which consisted of adjusting  +/- 50 basis points  the discount rate, adjusting +/- 50 basis points  the growth rate in perpetuity and reducing the cash flow projections by 5%. These changes in the key assumptions in isolation mean that the recoverable amount of all the cash- generating units continues to exceed their amount to be recovered and have been considered by the Group as reasonably possible changes in the business operations of the cash-generating units are not contemplated. The recoverable amount of Banco Santander - Chile and Banco Santander (Brasil) was calculated as the fair values of the aforementioned cash-generating units obtained from the quoted market prices of their shares at year-end. This value exceeded the amount to be recovered. A significant reduction in the quoted market prices of these cash generating unit could result in an indication of impairment which in turn may lead to a goodwill impairment charge in the future. Annual report 2025705 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 18. Intangible assets - #### Other intangible assets The detail of Intangible assets - Other intangible assets in the consolidated balance sheets and of the changes therein in 2025, 2024 , and 2023 is as follows: | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | EUR million | | | | | | | | | | | Estimated useful life | 1 January 2025 | Net additions and disposals | Change in scope of consolidation | Amortization and impairment | Application of amortization and impairment | Exchange differences and other | 31 December 2025 | | Cost | | 15,261 | 1,714 | (20) | | (1,286) | (1,179) | 14,490 | | Brand names | | 32 | — | — | | — | — | 32 | | IT developments | 3-10 years | 13,322 | 1,713 | (7) | | (1,286) | (1,084) | 12,658 | | Other | | 1,907 | 1 | (13) | | — | (95) | 1,800 | | Accumulated amortisation | | (9,235) | — | 12 | (1,847) | 1,228 | 795 | (9,047) | | Development | | (8,312) | — | 6 | (1,715) | 1,228 | 723 | (8,070) | | Other | | (923) | — | 6 | (132) | — | 72 | (977) | | Impairment losses | | (205) | — | — | (108) | 58 | 162 | (93) | | Of which addition | | | | | (108) | | | | | Of which Liberation | | | | | | | | | | | | 5,821 | 1,714 | (8) | (1,955) | — | (222) | 5,350 | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | EUR million | | | | | | | | | | | Estimated useful life | 1 January 2024 | Net additions and disposals | Change in scope of consolidation | Amortization and impairment | Application of amortization and impairment | Exchange differences and other | 31 December 2024 | | Cost | | 14,773 | 2,104 | (8) | | (1,169) | (439) | 15,261 | | Brand names | | 40 | — | — | | — | (8) | 32 | | IT developments | 3-10 years | 12,867 | 2,104 | (8) | | (1,169) | (472) | 13,322 | | Other | | 1,866 | — | — | | — | 41 | 1,907 | | Accumulated amortisation | | (8,851) | — | 6 | (1,626) | 1,062 | 174 | (9,235) | | Development | | (8,078) | — | 6 | (1,546) | 1,062 | 244 | (8,312) | | Other | | (773) | — | — | (80) | — | (70) | (923) | | Impairment losses | | (68) | — | — | (227) | 107 | (17) | (205) | | Of which addition | | | | | (227) | | | | | Of which Liberation | | | | | — | | | | | | | 5,854 | 2,104 | (2) | (1,853) | — | (282) | 5,821 | Annual report 2025706 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | EUR million | | | | | | | | | | | Estimated useful life | 1 January 2023 | Net additions and disposals | Change in scope of consolidation | Amortization and impairment | Application of amortization and impairment | Exchange differences and other | 31 December 2023 | | Cost | | 12,502 | 2,197 | 176 | | (230) | 128 | 14,773 | | Brand names | | 33 | — | 8 | | (2) | 1 | 40 | | IT developments | 3-10 years | 10,721 | 2,197 | 18 | | (196) | 127 | 12,867 | | Other | | 1,748 | — | 150 | | (32) | — | 1,866 | | Accumulated amortisation | | (7,554) | — | 5 | (1,386) | 209 | (125) | (8,851) | | Development | | (6,866) | — | — | (1,294) | 177 | (95) | (8,078) | | Other | | (688) | — | 5 | (92) | 32 | (30) | (773) | | Impairment losses | | (44) | — | — | (53) | 21 | 8 | (68) | | Of which addition | | | | | (53) | | | | | Of which Liberation | | | | | — | | | | | | | 4,904 | 2,197 | 181 | (1,439) | — | 11 | 5,854 | In 2025, 2024 and 2023 , impairment losses of EUR 108 million, EUR 227 million and EUR 53 million, respectively, were recognised under Impairment or reversal of impairment on non-financial assets, net – intangible assets. This impairment losses are related mainly to the decline in or loss of the recoverable value of certain computer systems and applications as a result of the processes initiated by the Group to transform or integrate businesses and to adapt to the various regulatory changes . 19. #### Other assets The detail of 'Other' of 'Other assets' is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Transactions in transit | 364 | 469 | 246 | | Net pension plan assets (note 25) | 784 | 677 | 1,001 | | Prepayments and accrued income | 3,121 | 3,016 | 2,911 | | Other | 4,376 | 4,310 | 4,598 | | | 8,645 | 8,472 | 8,756 | Annual report 2025707 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 20. Deposits from central banks and #### credit institutions The detail, by classification, counterparty, type and currency, of 'Deposits from central banks' and 'Deposits from credit institutions' in the consolidated balance sheets is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | CENTRAL BANKS | | | | | Classification | | | | | Financial liabilities held for trading | 12,385 | 13,300 | 7,808 | | Financial liabilities designated at fair value through profit or loss | 3,086 | 1,774 | 1,209 | | Financial liabilities at amortized cost | 18,542 | 24,882 | 48,782 | | | 34,013 | 39,956 | 57,799 | | Type | | | | | Deposits on demand | 856 | 405 | 117 | | Time deposits | 14,709 | 18,488 | 43,853 | | Reverse repurchase agreements | 18,448 | 21,063 | 13,829 | | | 34,013 | 39,956 | 57,799 | | CREDIT INSTITUTIONS | | | | | Classification | | | | | Financial liabilities held for trading | 27,058 | 26,284 | 17,862 | | Financial liabilities designated at fair value through profit or loss | 1,424 | 1,625 | 1,735 | | Financial liabilities at amortized cost | 74,692 | 90,012 | 81,246 | | | 103,174 | 117,921 | 100,843 | | Type | | | | | Deposits on demand | 5,005 | 6,657 | 5,468 | | Time deposits | 42,718 | 54,716 | 54,402 | | Reverse repurchase agreements | 55,186 | 56,273 | 40,689 | | Subordinated deposits | 265 | 275 | 284 | | | 103,174 | 117,921 | 100,843 | | Currency | | | | | Euro | 54,588 | 53,779 | 53,921 | | Pound sterling | 13,625 | 21,853 | 27,697 | | US dollar | 43,466 | 57,992 | 49,447 | | Brazilian real | 6,783 | 7,459 | 7,997 | | Other currencies | 18,725 | 16,794 | 19,580 | | TOTAL | 137,187 | 157,877 | 158,642 | At 31 December 2025 and 2024, no conditional long-term financing of the European Central Bank (TLTRO- Targeted Long- Term Refinancing Operation-) was outstanding. As of 2023, the balance of such financing amounted to EUR 11,583 million, all corresponding to the TLTRO III financing program. At 31 December 2025, no expense has been recognized in the consolidated income statement corresponding to TLTRO III (expenses of EUR 158 million and EUR 659 million at 31 December 2024 and 2023, respectively, as a result of the conditions of the financing programme). Note 51 contains a detail of the residual maturity periods of financial liabilities at amortised cost . 21. #### Customer deposits The detail, by classification, geographical area and type, of Customer deposits is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Classification | | | | | Financial liabilities held for trading | 36,120 | 18,984 | 19,837 | | Financial liabilities designated at fair value through profit or loss | 25,930 | 25,407 | 32,052 | | Financial liabilities at amortized cost | 979,150 | 1,011,545 | 995,280 | | | 1,041,200 | 1,055,936 | 1,047,169 | | Geographical areaA | | | | | Spain | 437,855 | 395,479 | 388,736 | | Rest of Europe | 323,854 | 377,057 | 366,165 | | of which: United Kingdom | 228,810 | 233,192 | 235,698 | | Rest of America | 279,491 | 283,400 | 292,268 | | of which: United States | 82,321 | 88,712 | 83,555 | | Rest of the world | — | — | — | | | 1,041,200 | 1,055,936 | 1,047,169 | | Type | | | | | Demand deposits- | 646,125 | 677,818 | 661,262 | | Time deposits- | 296,797 | 298,276 | 305,296 | | Deposits redeemable at notice | 1,487 | 1,525 | 1,789 | | Repurchase agreements | 96,791 | 78,317 | 78,822 | | | 1,041,200 | 1,055,936 | 1,047,169 | A. According to the geography of the legal entity. Note 51 contains a detail of the residual maturity periods of financial liabilities at amortised cost. Annual report 2025708 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 22. #### Marketable debt securities #### a) Breakdown The detail, by classification and type, of Marketable debt securities is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Classification | | | | | Financial liabilities held for trading | — | — | — | | Financial liabilities designated at fair value through profit or loss | 11,686 | 7,554 | 5,371 | | Financial liabilities at amortized cost | 312,704 | 317,967 | 303,208 | | | 324,390 | 325,521 | 308,579 | | Type | | | | | Bonds and debentures outstanding | 253,893 | 252,765 | 231,880 | | Subordinated | 28,859 | 35,461 | 30,529 | | Notes and other securities | 41,638 | 37,295 | 46,170 | | | 324,390 | 325,521 | 308,579 | The distribution of the book value of debt securities issued by contractual maturity at 31 December 2025 is shown below: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | | | | | | | Within 3 months | 3 to 12 months | 1 to 3 years | 3 to 5 years | More than 5 years | Total | | Subordinated debt | — | 798 | 1,760 | 2,277 | 24,024 | 28,859 | | Senior unsecured debt | 10,509 | 13,643 | 51,461 | 34,465 | 35,618 | 145,696 | | Senior secured debt | 11,529 | 12,308 | 43,661 | 28,106 | 12,593 | 108,197 | | Promissory notes and other securities | 17,747 | 23,060 | 335 | 170 | 326 | 41,638 | | Debt securities issued | 39,785 | 49,809 | 97,217 | 65,018 | 72,561 | 324,390 | The distribution by contractual maturity of the notional amounts of these debt securities issued at 31 December 2025 is as follows: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | | | | | | | Within 3 months | 3 to 12 months | 1 to 3 years | 3 to 5 years | More than 5 years | Total | | Subordinated debt | — | 790 | 1,744 | 2,255 | 22,926 | 27,715 | | Senior unsecured debt | 10,056 | 12,654 | 50,189 | 34,089 | 36,469 | 143,457 | | Senior secured debt | 11,038 | 12,110 | 43,467 | 28,116 | 12,513 | 107,244 | | Promissory notes and other securities | 17,709 | 23,042 | 299 | 154 | 312 | 41,516 | | Debt securities issued | 38,803 | 48,596 | 95,699 | 64,614 | 72,220 | 319,932 | Annual report 2025709 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | b) Bonds and debentures outstanding The detail, by currency of issue, of  'Bonds and debentures outstanding' is as follows: | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | 2025 | | | Currency of issue | 2025 | 2024 | 2023 | Outstanding issue amount in foreign currency (Million) | Annual interest rate (%) | | Euro | 117,350 | 110,973 | 101,657 | 117,350 | 2.72% | | US dollar | 71,140 | 79,740 | 70,229 | 83,632 | 4.73% | | Pound sterling | 25,548 | 23,961 | 20,520 | 22,301 | 5.14% | | Brazilian real | 21,848 | 18,683 | 21,861 | 141,089 | 14.21% | | Chilean peso | 4,697 | 4,579 | 4,921 | 4,977,648 | 3.61% | | Other currencies | 13,310 | 14,829 | 12,692 | | | | Balance at end of year | 253,893 | 252,765 | 231,880 | | | Annual report 2025710 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The changes in 'Bonds and debentures outstanding' were as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Balance at beginning of year | 252,765 | 231,880 | 211,597 | | Net inclusion of entities in the Group | — | (1,224) | (1,467) | | Of which: | | | | | SPIRE SA Compartment 2023-374 | — | (1,224) | — | | Auto ABS UK Loans PLC | — | — | (841) | | PSA Bank Deutschland GmbH | — | — | (626) | | Issues | 72,014 | 77,921 | 68,568 | | Of which: | | | | | Banco Santander, S.A. | 12,682 | 20,559 | 19,706 | | Banco Santander (Brasil) S.A. | 11,827 | 8,039 | 12,781 | | Santander Group UK | 11,450 | 9,884 | 6,002 | | Santander Consumer USA Holdings Inc. | 8,705 | 8,949 | 7,309 | | Santander International Products, Plc. | 5,071 | 2,752 | 1,054 | | Stellantis Financial Services Italia S.p.A. | 2,020 | 2,021 | 761 | | Santander Consumer Bank S.p.A. | 1,799 | 1,001 | 1,460 | | Santander Holdings USA, Inc. | 1,772 | 3,004 | 1,850 | | Fondo de Titulización, Santander Consumo 8 | 1,523 | — | — | | Fondo de Titulización, Santander Consumo 9 | 1,421 | — | — | | Banco Santander - Chile | 1,204 | 1,171 | 814 | | Santander Consumer Finance, S.A. | 1,181 | 2,271 | 2,557 | | Banco Santander Totta, S.A. | 1,069 | 1,129 | 1,734 | | Santander Bank, National Association | 853 | 4,133 | 1,346 | | SC Germany S.A., Compartment Consumer 2025-2 | 850 | — | — | | SC Austria S.à r.l., Compartment Consumer 2025-1 | 803 | — | — | | Secucor Finance 2025-1 Designated Activity Company | 801 | — | — | | Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México | 787 | 875 | 634 | | Hyundai Capital Bank Europe GmbH Italy | 749 | — | — | | Banque Stellantis France | 728 | 897 | 1,145 | | Santander Consumer Bank AG | — | 180 | 1,256 | | SC Germany S.A., Compartment Consumer 2024-1 | — | 1,500 | — | | Santander Consumo 6, F.T. | — | 1,230 | — | | Santander Consumo 7, F.T. | — | 1,218 | — | | Santander Bank Polska S.A. | — | 1,002 | 1,102 | | SC Germany S.A., Compartment Consumer 2024-2 | — | 1,000 | — | | Redemptions and repurchases | (60,335) | (57,676) | (48,825) | | Of which: | | | | | Banco Santander, S.A. | (14,854) | (15,888) | (7,889) | | Banco Santander (Brasil) S.A. | (9,430) | (6,919) | (10,542) | | Santander Consumer USA Holdings Inc. | (7,905) | (10,806) | (14,466) | | Santander Group UK | (4,936) | (7,764) | (6,185) | | Santander Consumer Finance, S.A. | (2,743) | (2,900) | (1,800) | | Santander Holdings USA, Inc. | (2,693) | (1,387) | — | | Santander Bank, National Association | (2,648) | (1,440) | (567) | | Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México | (2,084) | (122) | (140) | | Banco Santander - Chile | (1,930) | (1,486) | (575) | | Santander International Products, Plc. | (1,327) | (584) | (728) | | Santander Consumer Bank S.p.A. | (1,327) | (233) | (266) | | Santander Consumer Bank AS | (1,174) | (839) | (681) | | Banque Stellantis France | (746) | (565) | (813) | | Stellantis Financial Services Italia S.p.A. | (698) | (22) | — | | Banco Santander Totta, S.A. | (223) | (1,055) | (108) | | Exchange differences and other movements | (10,551) | 1,864 | 2,007 | | Balance at year-end | 253,893 | 252,765 | 231,880 | Annual report 2025711 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### c) Notes and other securities The notes of the Group (see Note 22.a) were issued basically by Santander Consumer Finance, S.A., Santander UK plc, Banco Santander (México), S.A. Institución de Banca Múltiple, Grupo Financiero Santander México, Banco Santander, S.A., Santander Consumer Bank AG, Banque Stellantis France, Banco Santander - Chile and Banco Santander S.A. - Uruguay. d) Guarantees Set forth below is information on the liabilities secured by assets: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Asset-backed securities | 55,031 | 49,723 | 37,717 | | Of which, mortgage-backed securities | 5,961 | 4,377 | 3,019 | | Other mortgage securities | 51,438 | 50,141 | 49,478 | | Of which: mortgage-backed bonds | 22,624 | 22,631 | 24,619 | | Covered bonds (non mortgage and export financing) | 1,728 | 995 | 764 | | | 108,197 | 100,859 | 87,959 | The main characteristics of the assets securing the aforementioned financial liabilities are as follows: 1. Asset-backed securities a. Mortgage-backed securities- these securities are secured by mortgage assets (see Note 10.e) with average maturities of more than ten years that must: be a first mortgage for acquisition of principal or second residence, be current in payments, have a loan-to-value ratio below 80% and have a liability insurance policy in force covering at least the appraisal value. The value of the financial liabilities broken down in the foregoing table is lower than the balance of the assets securing them —securitised assets retained on the balance sheet— mainly because the Group repurchases a portion of the bonds issued, and in such cases they are not recognised on the liability side of the consolidated balance sheet. b. Other asset - backed securities: includes asset-backed securities, notes issued by securitization funds collateralized mainly by mortgage loans that do not meet the above requirements and other loans (mainly personal loans with an average maturity of five years and loans to SMEs with average maturities of seven years) and private issues of Santander Consumer USA Holdings Inc. collateralized by vehicles assigned under operating leases. 2. Other mortgage securities include mainly: a. Mortgage-backed bonds with average maturities of more than ten years that are secured by a portfolio of mortgage loans and credits (included in secured loans  —see note 10.b—) which must: not be classified as of procedural stage; have available appraisals performed by specialised entities; have a loan-to- value (LTV) ratio below 80% in the case of home loans and below 60% for loans for other assets and have sufficient liability insurance. b. Other debt securities issued as part of the Group’s liquidity strategy in the UK, mainly covered bonds in the UK secured by mortgage loans and other assets. Grupo Santander has a balance corresponding to mortgage bonds at 31 December 2025 of EUR 22,624 million (all of them issued in euros), which correspond to issues of Banco Santander, S.A. (with an outstanding face value of EUR 22,360 million). The issuing entity may repay the mortgage bonds early, if this has been expressly established in the final conditions of the issue in question and in the conditions established there. None of the mortgage bonds issued by Banco Santander have replacement assets involved. During 2023, the Bank of Spain has published Circular 1/2023 of 4 February , which modifies Circular 4/2017, repealing the breakdown in the annual accounts and the information related to internal accounting development and management control. Additionally, Banco Santander, S.A. issues internationalization certificates, which are securities whose capital and interest are guaranteed by loans and credits that are linked to the financing of export contracts or the internationalization of companies. The fair value of the guarantees received by the Group (financial and non-financial assets) which the Group is authorised to sell or pledge even if the owner of the guarantee has not defaulted is scantly material taking into account the Consolidated financial statements as a whole. Annual report 2025712 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 23. #### Subordinated liabilities #### a) Breakdown The detail, by currency of issue, of Subordinated liabilities, deposits and marketable debt securities,  in the consolidated balance sheets is as follows: | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | 2025 | | | | 2025 | 2024 | 2023 | Outstanding issue amount in foreign currency (million) | Annual interest rate (%) | | Currency of issue | | Euro | 11,402 | 14,999 | 13,684 | 11,402 | 4.55% | | US dollar | 9,750 | 13,425 | 11,300 | 11,462 | 6.53% | | Brazilian real | 4,354 | 3,600 | 2,518 | 28,117 | 16.30% | | Pound sterling | 1,347 | 1,409 | 1,353 | 1,176 | 4.28% | | Other currencies | 2,434 | 2,380 | 2,057 | | | | Balance at end of year | 29,287 | 35,813 | 30,912 | | | Note 51 contains a detail of the residual maturity periods of subordinated liabilities at each year-end. #### b) Changes The movement in the balance of subordinated liabilities in the last three years were as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Balance at beginning of year | 35,813 | 30,912 | 25,926 | | Net inclusion of entities in the Group | — | — | (40) | | IssuancesA | 2,287 | 7,001 | 7,007 | | Of which: | | | | | Banco Santander, S.A. | 1,862 | 5,625 | 5,610 | | Banco Santander (Brasil) S.A. | 375 | 1,338 | 1,112 | | Banque Stellantis France | — | 25 | 150 | | Redemptions and repurchasesA | (7,110) | (2,572) | (1,781) | | Of which: | | | | | Banco Santander, S.A. | (6,754) | (2,433) | (1,000) | | Santander UK Group Holdings plc | (352) | — | — | | Santander Bank Polska S.A. | — | (100) | — | | Santander UK plc | — | — | (702) | | Banque Stellantis France | — | — | (78) | | Exchange differences and other movements | (1,703) | 472 | (200) | | Balance at end of year | 29,287 | 35,813 | 30,912 | A. The balance relating to issuances, redemptions and repurchases (EUR 4,823 million), together with the interest paid in remuneration of these issuances including PPCC (EUR 1,560 million), is included in the cash flow from financing activities. #### c) Other disclosures This caption includes contingent convertible or redeemable preferred participations, as well as other subordinated financial instruments issued by consolidated companies, which do not qualify as equity (preferred shares). Preferred shares do not have voting rights and are non-cumulative. They have been subscribed by third parties outside the Group, and except for the issuances of Santander UK plc, the rest are redeemable by decision of the issuer, according to the terms of each issue. Banco Santander's contingently convertible preferred participations are subordinated debentures and rank after common creditors and any other subordinated credit that by law and/or by their terms, to the extent permitted by Spanish law, ranks higher than the contingently convertible preferred participations. Their remuneration is conditioned to the obtainment of sufficient distributable profits, and to the limitations imposed by the regulations on shareholders' equity, and they have no voting rights. The other issues of Banco Santander, S.A. mentioned in this caption are also subordinated debentures and, for credit ranking purposes, they rank behind all the common creditors of the issuing entities and ahead of any other subordinated credit that ranks pari passu with the Bank's contingently convertible preferred participations. The main issuances of subordinated debt securities, broken down by company, are detailed below: Issuances by Banco Santander, S.A. On 1 December 2025, Banco Santander, S.A. has proceeded to redeem in advance all the issued subordinated obligations: 'EUR 60,000,000', with original maturity date on December 2026 and with ISIN code XS1492669509. On 19 November 2025, Banco Santander, S.A. carried out an issuance for an amount of USD 1,500 million with ISIN code US05971KAA79. Annual report 2025713 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | On 24 September 2025, Banco Santander, S.A. proceeded to redeem in advance all the issued subordinated obligations: 'EUR 50,000,000 Fixed/Floating', with original maturity date on March 2029 and with ISIN code XS1585005314. On 5 August 2025, Banco Santander, S.A. proceeded to redeem in advance the subordinated debt issuances with ISIN code XS1384064587, for a nominal amount of EUR 1,500 million, with a coupon of 3.250% and original maturity date on April 2026 and with ISIN code XS1548444816, for a nominal amount of EUR 1,000 million, with a coupon of 3.125% and original maturity date on January 2027. On 2 July 2025, Banco Santander, S.A. proceeded to repurchase for their subsequent redeem in advance the contingently convertible preferred shares with ISIN code XS2102912966, for a total nominal amount of EUR 466.6 million and which are traded on the market of the Irish Stock Exchange 'Global Exchange Market', leaving the amount in circulation at  EUR 1,033.4 million. On 2 July 2025, Banco Santander, S.A. carried out a placement of preference shares contingently convertible into newly issued ordinary shares of the Bank (PPCC), for a nominal amount of EUR 1,500 million with ISIN code XS3100756637 . The Issuance has been made at par and the remuneration of the PPCC, whose payment is subject to certain conditions and is also discretionary, has been set at 6% quarterly for the first six years, being reviewed every five years thereafter by applying a margin of 381.9 basis points over the five-year mid-swap rate. On 18 March 2025, Banco Santander, S.A. carried out an issuance for an amount of EUR 1,500 million with ISIN code XS1201001572. On 17 February 2025, Banco Santander, S.A. prepaid EUR 600.8 million out of a total of EUR 1,500 million of the transaction with ISIN XS138406464587 following the tender announcement launched on 6 February 2025. On 17 February 2025, Banco Santander, S.A. prepaid EUR 563.6 million euros out of a total of EUR 1,000 million of the transaction with ISIN XS1548444816 following the tender announcement launched on 6 February 2025. On 1 August 2024, Banco Santander, S.A. carried out a placement of preference shares contingently convertible into newly issued ordinary shares of the Bank (PPCC), for a nominal amount of USD 1,500 million (valued at EUR 1,356 million ). The issuance has been made at par and the remuneration of the PPCC, whose payment is subject to certain conditions and is also discretionary, has been set at 8% annually for the first ten years, being reviewed every five years thereafter by applying a margin of 391.1 basis points over the 5-year mid-swap rate. On 20 May 2024, Banco Santander, S.A., proceeded to partially redeem in advance the contingently convertible preferred shares with ISIN code XS1793250041, for a total nominal amount of EUR 1,312 million and which are traded on the market of the Irish Stock Exchange 'Global Exchange Market' (the 'PPCC'), leaving the amount in circulation at EUR 187.6 million. On 20 May 2024, Banco Santander, S.A. carried out a placement of preference shares contingently convertible into newly issued ordinary shares of the Bank (PPCC), for a nominal amount of EUR 1,500 million. The Issuance has been made at par and the remuneration of the PPCC, whose payment is subject to certain conditions and is also discretionary, has been set at 7% annually for the first six years, being reviewed every five years thereafter by applying a margin of 443.2 basis points over the 5-year mid-swap rate. On 14 March 2024, Banco Santander, S.A. issued subordinated obligations for an amount of USD 1,250 million (valued at EUR 1,158 million) for a term of 10 years. The issuance was made at par and the issue coupon was set at 6.35% per year, payable bi- annually. On 8 February 2024, Banco Santander, S.A., proceeded to prepay all of the contingently convertible Tier 1 preferred shares with ISIN code XS1951093894, for a total nominal amount of USD 1,200 million (valued at EUR 1,110 million) and that were traded on the Irish Stock Exchange 'Global Exchange Market' (the 'PPCC'). On 22 January 2024, Banco Santander, S.A. issued subordinated bonds for an amount of EUR 1,250 million for a term of 10 years and 3 months. The issue was carried out at 99.74% and the issue coupon was set at 5% per year for the first 5 years and 3 months, with an amortization option in April 2029, reviewing the coupon, in case of non-amortization, at a fixed rate equivalent to a margin of 250 points plus the 5-year Euro swap rate. On 29 December 2023,  Banco Santander, S.A., proceeded to prepay all the Tier 1 Contingently Convertible Preferred Securities with ISIN code  XS1692931121 for a total nominal amount of EUR 1,000 million and which were traded on the Irish Stock Market 'Global Exchange Market' (the 'PPCC'). On 21 November 2023, Banco Santander, S.A., carried out a placement of two series of contingently convertible preferred shares into newly issued ordinary shares of the Bank, for a total nominal amount of USD 1,150 million (EUR 1,054 million at the exchange rate on the day of issue) and USD 1,350 million (EUR 1,235 million at the exchange rate on the day of issue), respectively. The issue was carried out at par and the remuneration of the PPCC, whose payment is subject to certain conditions and is also discretionary, was set (i) for the first Series at 9.625% annually for the first five years and six months, being reviewed every five years thereafter by applying a margin of 530.6 basis points on the five- year UST rate (5-year UST), and (ii) for the second Series at 9.625% annually for the first ten years, being reviewed thereafter every five years, applying a margin of 529.8 basis points on the five-year UST rate. On 8 August 2023, Banco Santander, S.A. carried out an issuance of subordinated obligations for an amount of 2,000 million dollars (1,821 million euros at the exchange rate on the day of issuance). The issue was carried out at par coupon was set at 6.921% per year, payable semiannually during the 10-year life of the operation. Annual report 2025714 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | On 23 May 2023, Banco Santander, S.A. issued subordinated bonds for an amount of 1,500 million euros for a term of 10 years and 3 months. The issue was carried at 99.739% and the coupon of the issue was set at 5.75% annually for the first 5 years and 3 months, with the option of amortization in August 2028, revising the coupon, in case of non-amortization, at a margin of 285 points plus the Euro Swap type 5 years. On 25 April 2022, Banco Santander, S.A. proceeded to prepay all the Tier 1 Contingently Convertible Preferred Securities with ISIN code XS1602466424 and common code 160246642 in circulation, for a total nominal amount of EUR 750 million and which were traded on the Irish Stock Market 'Global Exchange Market' (the 'PPCC'). On 22  November 2021, Banco Santander, S.A. issued subordinated debentures for a term of eleven years, with a redemption option on the tenth anniversary of the issue date, in the amount of USD 1,000 million (EUR 1,007 million at the exchange rate on the day of issue). The issue bears interest at an annual rate of 3.225%, payable semi-annually, for the first ten years. This issue has an early redemption option in the tenth year from the issue date and if the redemption is not executed in the tenth year, the coupon is repriced at a margin of 160 points over the one-year US government bond. On 4 October 2021, Banco Santander, S.A. issued subordinated debentures for a term of eleven years, with a redemption option on the sixth anniversary of the issue date, amounting to GBP 850 million (EUR 887 million at the exchange rate on the day of issue). The issue bears interest at an annual rate of 2.25%, payable annually for the first six years (then repricing at a margin of 165 points over the 5-year UK government bond). On 21 September 2021, Banco Santander, S.A. carried out a placement of preferential shares contingently convertible into newly issued ordinary shares of the Bank ('PPCC') for a nominal amount of EUR 1,000 million (issue placed on the market EUR 997 million ). The issuance was carried out at par and the remuneration of the PPCC, whose payment is subject to certain conditions and is also discretionary, was set at 3.625% per year for the first eight years , being reviewed every five years applying a margin of 376 basis points over the 5-year Mid-Swap Rate. On 12 May 2021, Banco Santander, S.A. placed the issue of preference shares contingently convertible into newly issued ordinary shares of the Bank, previously announced, for a total nominal amount of  EUR 1,578 million, issued in a Series in Dollars of  USD 1,000 million (EUR 828 million at the exchange rate on the day of issue) and a Series in Euros for an amount of EUR 750 million. The issuance was carried out at par and the remuneration of the PPCC, whose payment is subject to certain conditions and is also discretionary, was set (i) for the Series in Dollars at 4.750% per annum for the first six years, being revised every five years applying a margin of 375.3 basis points over the 5- year UST rate and (ii) for the Series in Euros by 4.125% per annum for the first seven years, being revised every five years applying a margin of 431.1 basis points over the applicable 5-year euro mid- swap. On 3 December 2020, Banco Santander, S.A. issued subordinated debentures with a ten-year term of USD 1,500 million (EUR 1,222 million at the date of issue). The issue bears interest at an annual rate of 2.749%, payable semiannually. On 22 October 2020, it carried out a ten-year subordinated debenture issue for an amount of EUR 1,000 million. The issue bears interest at an annual rate of 1.625%, payable annually. On 14 January 2020, it carried out a placement of contingently convertible preferred participations into newly issued ordinary shares of the Bank (the 'PPCCs'), excluding the pre-emptive subscription rights of its shareholders and for a nominal amount of EUR 1,500 million (the 'Issuance' and the 'PPCCs'). The Issuance was made at par and the remuneration of the PPCCs, the payment of which is subject to certain conditions and is also discretionary, was set at 4.375% per annum for the first six years, revised every five years thereafter by applying a margin of 453.4 basis points over the 5-year mid-Swap Rate (5-year mid-Swap Rate). On 8 February 2018, a ten-year subordinated debenture issuance of EUR 1,250 million was carried out. The issue accrues annual interest of 2.125% payable annually. Issuances by Banco Santander (Brasil) S.A. In early December 2025, Brazil closed a Tier 2 subordinated debt issuance in its local market with a 10-year term and the first call date at 5 years, for an amount of BRL 2.4 billion. The issuance price was 10y CDI + 65 bps. At September 2024, Brazil issued AT1 Financial Notes (PerpNC5) in its local market for an amount of BRL 7,600 million at CDI + 140% (equivalent to UST +222 bps). At the beginning of October 2023, Banco Santander (Brasil) S.A. carried out an issuance of Subordinated Financial Bills (TIER II) in its local market for a 10-year term, with a repurchase option as of the fifth anniversary of the issuance date, in the amount of BRL 6,000 million. The issuance price was CDI +1.6% per annum, payable at maturity. At the end of November 2021, Banco Santander (Brasil) S.A. carried aout an issuance of Subordinated Financial Bills (TIER II) in its local market for a 10-year term, with a repurchase option as of the fifth anniversary of the issue date, in the amount of BRL 5,500 million. The issue price was CDI 2% per annum, payable at maturity. Issuance by Santander Bank Polska S.A. At 28 November 2024, Santander Bank Polska S.A proceeded to repay subordinated debt ISIN XS0531310182 for EUR 100 million. The debt was originally fully subscribed by the EBRD at 5 August 2010. The accrued interests from the subordinated liabilities during 2025 amounted to EUR 1,486 million (EUR 1,357 million and EUR 1,010 million during 2024 and 2023, respectively). In addition, interests from the PPCC and PPCA during 2025 amounted to EUR 622 million (EUR 620 million and EUR 492 million in 2024 and 2023, respectively). Annual report 2025715 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 24. #### Other financial liabilities The detail of Other financial liabilities in the consolidated balance sheets is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Trade payables | 1,452 | 1,452 | 1,783 | | Clearing houses | 794 | 776 | 1,269 | | Tax collection accounts: | | | | | Public Institutions | 6,271 | 6,156 | 4,986 | | Factoring accounts payable | 274 | 226 | 272 | | Unsettled financial transactions | 3,860 | 7,421 | 6,412 | | Lease liabilities (note 2.k) | 1,822 | 2,202 | 2,400 | | Other financial liabilities | 21,645 | 21,683 | 23,065 | | | 36,118 | 39,916 | 40,187 | Note 51 contains a detail of the residual maturity periods of other financial liabilities at each year-end. Lease liabilities The cash outflow of leases in 2025 was EUR 510 million (EUR 684 million and EUR 738 in 2024 and 2023, respectively). The analysis of the maturities of lease liabilities at 31 December 2025, 2024 and 2023 is shown below: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Maturity Analysis - Discounted payments | | | | | Within 1 year | 466 | 526 | 586 | | Between 1 and 3 years | 619 | 868 | 918 | | Between 3 and 5 years | 315 | 405 | 480 | | Later than 5 years | 422 | 403 | 416 | | Total discounted payments at the end of the year | 1,822 | 2,202 | 2,400 | During 2025, 2024 and 2023 there were no significant variable lease payments not included in the valuation of lease liabilities. 25. Provisions #### a) Breakdown The detail of Provisions in the consolidated balance sheets is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Provision for pensions and other obligations post-employments | 1,656 | 1,731 | 2,225 | | Other long term employee benefits | 993 | 915 | 880 | | Provisions for taxes and other legal contingencies | 2,989 | 2,717 | 2,715 | | Contingent liabilities and commitments (note 2.o) | 713 | 710 | 702 | | Other provisions | 2,004 | 2,334 | 1,919 | | Provisions | 8,355 | 8,407 | 8,441 | Annual report 2025716 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### b) Changes The changes in 'Provisions' in the last three years were as follows: | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | EUR million | | | | | | | | 2025 | | | | | | | Post employment plans | Long term employee benefits | Contingent liabilities and commitments | Other provisions | Total | | Balances at beginning of year | 1,731 | 915 | 710 | 5,051 | 8,407 | | Incorporation of Group companies, net | (13) | — | — | — | (13) | | Additions charged to income | 75 | 437 | 50 | 2,299 | 2,861 | | Interest expense (note 39) | 59 | 32 | — | — | 91 | | Staff costs (note 46) | 32 | 9 | — | — | 41 | | Provisions or reversion of provisions | (16) | 396 | 50 | 2,299 | 2,729 | | Addition | 6 | 424 | 591 | 4,429 | 5,450 | | Release | (22) | (28) | (541) | (2,130) | (2,721) | | Other additions arising from insurance contracts linked to pensions | (5) | — | — | — | (5) | | Changes in value recognised in equity | 220 | — | — | — | 220 | | Payments to pensioners and pre-retirees with a charge to internal provisions | (107) | (358) | — | — | (465) | | Benefits paid due to settlements | (31) | — | — | — | (31) | | Insurance premiums paid | — | — | — | — | — | | Payments to external funds | (329) | — | — | — | (329) | | Amounts used | — | — | — | (2,252) | (2,252) | | Transfer, exchange differences and other changes | 115 | (1) | (47) | (105) | (38) | | Balances at end of year | 1,656 | 993 | 713 | 4,993 | 8,355 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | EUR million | | | | | | | | | | | | | | 2024 | | | | | | 2023 | | | | | | | Post employment plans | Long term employee benefits | Contingent liabilities and commitments | Other provisions | Total | | Post employment plans | Long term employee benefits | Contingent liabilities and commitments | Other provisions | Total | | Balances at beginning of year | 2,225 | 880 | 702 | 4,634 | 8,441 | | 2,392 | 950 | 734 | 4,073 | 8,149 | | Incorporation of Group companies, net | — | — | — | — | — | | (4) | — | — | — | (4) | | Additions charged to income | 94 | 368 | 47 | 3,106 | 3,615 | | 92 | 244 | (38) | 2,247 | 2,545 | | Interest expense (note 39) | 76 | 29 | — | — | 105 | | 59 | 34 | — | — | 93 | | Staff costs (note 46) | 34 | 11 | — | — | 45 | | 33 | 9 | — | — | 42 | | Provisions or reversion of provisions | (16) | 328 | 47 | 3,106 | 3,465 | | — | 201 | (38) | 2,247 | 2,410 | | Addition | 5 | 335 | 430 | 4,429 | 5,199 | | 3 | 204 | 378 | 3,759 | 4,344 | | Release | (21) | (7) | (383) | (1,323) | (1,734) | | (3) | (3) | (416) | (1,512) | (1,934) | | Other additions arising from insurance contracts linked to pensions | (2) | — | — | — | (2) | | — | — | — | — | — | | Changes in value recognised in equity | 643 | — | — | — | 643 | | 944 | — | — | — | 944 | | Payments to pensioners and pre-retirees with a charge to internal provisions | (153) | (331) | — | — | (484) | | (182) | (316) | — | — | (498) | | Insurance premiums paid | — | — | — | — | — | | — | — | — | — | — | | Payments to external funds | (708) | — | — | — | (708) | | (750) | — | — | — | (750) | | Amounts used | — | — | — | (2,490) | (2,490) | | — | — | (1) | (2,087) | (2,088) | | Transfer, exchange differences and other changes | (368) | (2) | (39) | (199) | (608) | | (267) | 2 | 7 | 401 | 143 | | Balances at end of year | 1,731 | 915 | 710 | 5,051 | 8,407 | | 2,225 | 880 | 702 | 4,634 | 8,441 | Annual report 2025717 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | c) Provision for pensions and other obligations post –employments and Other long term employee benefits The detail of Provisions for pensions and similar obligations is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Provisions for post-employment plans - Spanish entities | 602 | 674 | 770 | | Provisions for other similar obligations - Spanish entities | 927 | 852 | 817 | | Of which pre-retirements | 916 | 839 | 805 | | Provisions for post-employment plans - United Kingdom | 26 | 28 | 76 | | Provisions for post-employment plans - Other subsidiaries | 1,028 | 1,029 | 1,379 | | Provisions for other similar obligations - Other subsidiaries | 66 | 63 | 63 | | Provision for pensions and other obligations post -employments and Other long term employee benefits | 2,649 | 2,646 | 3,105 | | Of which defined benefits | 2,637 | 2,638 | 3,097 | i. Spanish entities - Post-employment plans and other #### similar obligations At 31 December 2025, 2024 and 2023, the Spanish entities had post-employment benefit obligations under defined contribution and defined benefit plans. In addition, in various years some of the consolidated entities offered certain of their employees the possibility of taking pre-retirement and, therefore, provisions are recognised each year for the obligations to employees taking pre- retirement -in terms of salaries and other employee benefit costs- from the date of their pre-retirement to the agreed end date. In 2023, the provisions made to cover the commitments with 502 employees covered by early retirement and incentivized dismissals plan amounted to EUR 160 million . In 2024, the provisions made to cover the commitments with 826 employees covered by early retirements and incentivized dismissals amounted to EUR 303 million. In 2025, the provisions made to cover the commitments with 1,238 employees covered by early retirements and incentivized dismissals amounted to EUR 389 million. The expenses incurred by the Spanish companies in 2025, 2024 and 2023 in respect of contributions to defined contribution plans amounted to EUR 130 million, EUR 126 million and EUR 116 million, respectively. The amount of the defined benefit obligations was determined on the basis of the work performed by independent actuaries using the following actuarial techniques: 1.Valuation method: projected unit credit method, which sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately. 2.Actuarial assumptions used: unbiased and mutually compatible. Specifically, the most significant actuarial assumptions used in the calculations were as follows: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Post-employment plans | | | | Other similar obligations | | | | | 2025 | 2024 | 2023 | | 2025 | 2024 | 2023 | | Annual discount rate | 3.75% | 3.00% | 3.35% | | 3.75% | 3.00% | 3.35% | | Mortality tables | PER2020 M/F Col. Orden 1 | PER2020 M/F Col. Orden 1 | PER2020 M/F Col. Orden 1 | | PER2020 M/F Col. Orden 1 | PER2020 M/F Col. Orden 1 | PER2020 M/F Col. Orden 1 | | Cumulative annual CPI growth | 2.00% | 2.00% | 2.00% | | 2.00% | 2.00% | 2.00% | | Annual salary increase rate | 1.25%A | 1.25%A | 1.25%A | | N/A | N/A | N/A | | Annual social security pension increase rate | 2.12% | 2.12% | 2.12% | | N/A | N/A | N/A | | Annual benefit increase rate | N/A | N/A | N/A | | 0% | 0% | 0% | A. Corresponds to the group’s defined-benefit obligations. The discount rate used for the flows was determined by reference to high-quality corporate bonds (at least AA in euros) matching the durations of the commitments. From the bond portfolio considered, callable, putable and sinkable bonds, which could distort the rates, are excluded. Any changes in the main assumptions could affect the calculation of the obligations. At 31 December 2025 , if the discount rate used had been decreased or increased by 50 basis points (bp), there would have been an increase or decrease in the present value of the post-employment obligations of 4.02% (-50 bp) to -3.75% (+50 bp),respectively, and an increase or decrease in the present value of the long-term obligations of 1.15% (-50 bp) to -1.15% (+50 bp), respectively. These changes would be offset in part by increases or decreases in the fair value of the assets and insurance contracts linked to pensions. Annual report 2025718 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 3. The estimated retirement age of each employee is the first at which the employee is entitled to retire or the agreed-upon age, as appropriate. The fair value of insurance contracts was determined as the present value of the related payment obligations, taking into account the following assumptions: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Post-employment plans | | | | Other similar obligations | | | | | 2025 | 2024 | 2023 | | 2025 | 2024 | 2023 | | Expected rate of return on plan assets | 3.75% | 3.00% | 3.35% | | 3.75% | 3.00% | 3.35% | | Expected rate of return on reimbursement rights | 3.75% | 3.00% | 3.35% | | N/A | N/A | N/A | The funding status of the defined benefit obligations in 2025 and the two preceding years is as follows: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | EUR million | | | | | | | | | | Post-employment plans | | | | Other similar obligations | | | | | 2025 | 2024 | 2023 | | 2025 | 2024 | 2023 | | Present value of the obligations | | | | | | | | | To current employees | 34 | 49 | 51 | | — | — | — | | Vested obligations to retired employees | 1,610 | 1,850 | 1,936 | | — | — | — | | To pre-retirees employees | | — | — | | 919 | 844 | 812 | | Long-service bonuses and other benefits | | — | — | | 11 | 13 | 12 | | | 1,644 | 1,899 | 1,987 | | 930 | 857 | 824 | | Less - Fair value of plan assets | 1,058 | 1,234 | 1,235 | | 3 | 5 | 7 | | Provisions - Provisions for pensions | 586 | 665 | 752 | | 927 | 852 | 817 | | Of which: | | | | | | | | | Internal provisions for pensions | 535 | 593 | 677 | | 927 | 852 | 817 | | Net pension assets | (13) | (6) | (14) | | — | — | — | | Insurance contracts linked to pensions (note 14) | 67 | 81 | 93 | | — | — | — | | Unrecognised net assets for pensions | (3) | (3) | (4) | | — | — | — | The amounts recognised in the consolidated income statements in relation to the aforementioned defined benefit obligations are as follows: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | EUR million | | | | | | | | | | Post-employment plans | | | | Other similar obligations | | | | | 2025 | 2024 | 2023 | | 2025 | 2024 | 2023 | | Current service cost | 5 | 3 | 2 | | 1 | 1 | 1 | | Interest cost (net) | 27 | 28 | 42 | | 27 | 25 | 30 | | Expected return on insurance contracts linked to pensions | (3) | (3) | (4) | | — | — | — | | Provisions or reversion of provisions | | | | | | | | | Actuarial (gains)/losses recognised in the year | — | — | — | | (19) | — | 7 | | Past service cost | — | 3 | 2 | | — | — | 13 | | Pre-retirement cost | — | — | — | | 389 | 303 | 160 | | OtherA | (16) | (10) | (1) | | — | (4) | (1) | | | 13 | 21 | 41 | | 398 | 325 | 210 | A. Including reduction/settlement effect In addition, in 2025 'Other comprehensive income – Items not reclassified to profit or loss – Actuarial gains or (-) losses on defined benefit pension plans' has decreased by EUR 33 million with respect to defined benefit obligations ( increase of EUR 21 and increase of EUR 10 million in 2024 and 2023, respectively). Annual report 2025719 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The changes in the present value of the accrued defined benefit obligations were as follows: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | EUR million | | | | | | | | | | Post-employment plans | | | | Other similar obligations | | | | | 2025 | 2024 | 2023 | | 2025 | 2024 | 2023 | | Present value of the obligations at beginning of year | 1,899 | 1,987 | 2,076 | | 857 | 824 | 903 | | Incorporation of Group companies, net | — | — | — | | — | — | — | | Current service cost | 5 | 3 | 2 | | 1 | 1 | 1 | | Interest cost | 67 | 71 | 82 | | 27 | 25 | 30 | | Pre-retirement cost | — | — | — | | 389 | 303 | 160 | | Effect of curtailment/settlement | (9) | (10) | (1) | | — | (4) | (1) | | Benefits paid | (179) | (203) | (210) | | (325) | (292) | (290) | | Benefits paid due to settlements | (31) | (2) | — | | — | — | — | | Past service cost | — | 3 | 2 | | — | — | 13 | | Actuarial (gains)/losses | (102) | 45 | 37 | | (19) | — | 7 | | Demographic actuarial (gains)/losses | (14) | — | (2) | | (8) | (1) | — | | Financial actuarial (gains)/losses | (88) | 45 | 39 | | (11) | 1 | 7 | | Exchange differences and other items | (6) | 5 | (1) | | — | — | 1 | | Present value of the obligations at end of year | 1,644 | 1,899 | 1,987 | | 930 | 857 | 824 | The changes in the fair value of plan assets and of insurance contracts linked to pensions were as follows: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Plan Assets | | | | | | | | | EUR million | | | | | | | | | | Post-employment plans | | | | Other similar obligations | | | | | 2025 | 2024 | 2023 | | 2025 | 2024 | 2023 | | Fair value of plan assets at beginning of year | 1,234 | 1,235 | 861 | | 5 | 7 | 8 | | Incorporation of Group companies, net | — | — | — | | — | — | — | | Expected return on plan assets | 40 | 43 | 40 | | — | — | — | | Gains/(losses) on settlements | 7 | — | — | | — | — | — | | Benefits paid | (144) | (124) | (89) | | (2) | (2) | (2) | | Contributions/(surrenders) | (7) | 58 | 409 | | — | — | — | | Actuarial gains/(losses) | (64) | 27 | 25 | | — | — | — | | Exchange differences and other items | (8) | (5) | (11) | | — | — | 1 | | Fair value of plan assets at end of year | 1,058 | 1,234 | 1,235 | | 3 | 5 | 7 | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Insurance Contracts linked to pensions | | | | | | | | | EUR million | | | | | | | | | | Post-employment plans | | | | Other similar obligations | | | | 2025 | 2024 | 2023 | | 2025 | 2024 | 2023 | | Fair value of insurance contracts linked to pensions at beginning of year | 81 | 93 | 104 | | — | — | — | | Incorporation of Group companies, net | — | — | — | | — | — | — | | Expected return on insurance contracts linked to pensions | 3 | 3 | 4 | | — | — | — | | Benefits paid | (12) | (13) | (15) | | — | — | — | | Paid premiums | — | — | — | | — | — | — | | Actuarial gains/(losses) | (5) | (2) | — | | — | — | — | | Fair value of insurance contracts linked to pensions at end of year | 67 | 81 | 93 | | — | — | — | Annual report 2025720 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | In view of the conversion of the defined-benefit obligations to defined-contribution obligations, the Group will not make material current contributions in Spain in 2026 to fund its defined-benefit pension obligations. The plan assets and the insurance contracts linked to pensions are instrumented mainly through insurance policies. The following table shows the estimated benefits payable at 31 December 2025 for the next ten years: | | | | --- | --- | | | | | EUR million | | | 2026 | 461 | | 2027 | 391 | | 2028 | 331 | | 2029 | 274 | | 2030 | 223 | | 2031 to 2035 | 672 | ii. United Kingdom At the end of each of the last three years, the businesses in the United Kingdom had post-employment benefit obligations under defined contribution and defined benefit plans. The expenses incurred in respect of contributions to defined contribution plans amounted to EUR 92 million in 2025 (EUR 98 million in 2024 and EUR 87 million in 2023 ). The amount of the defined benefit obligations was determined on the basis of the work performed by independent actuaries using the following actuarial techniques: 1.Valuation method: projected unit credit method, which sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately. 2.Actuarial assumptions used: unbiased and mutually compatible. Specifically, the most significant actuarial assumptions used in the calculations were as follows: | | | | | | --- | --- | --- | --- | | | | | | | | 2025 | 2024 | 2023 | | Annual discount rate | 5.58% | 5.54% | 4.63% | | Mortality tables | 'S4 Light' tables weighted 105% males/101% females and CMI\_2024 projection [LTR=1.25%, A=0.25%, H=1] with both Age-Period and Cohort convergence periods equal to core values except increased to 20 years for ages 80 to 100 and then tapering down to nil by age 120 | The S3 Middle tables weighted at 84% of the CMI\_2023 projection with an initial addition of 0.25%, smoothing parameter 7 and improving 1.25%. | The S3 Middle tables weighted at 84% of the CMI\_2022 projection with an initial addition of 0.25%, smoothing parameter 7 and improving 1.25%. | | Cumulative annual CPI growth | 2.9% | 3.11% | 3.02% | | Annual salary increase rate | 1.00% | 1.00% | 1.00% | | Annual pension increase rate | 2.78% | 3.04% | 2.96% | The discount rate used for the flows was determined by reference to high-quality corporate bonds (at least AA in pounds sterling) that coincide with the terms of the obligations. Any changes in the main assumptions could affect the calculation of the obligations. At 31 December 2025, if the discount rate used had been decreased or increased by 50 basis points, there would have been an increase or decrease in the present value of the obligations of 5.82% (-50 bp) and -5.28% (+50 bp), respectively. If the inflation assumption had been increased or decreased by 50 basis points, there would have been an increase or decrease in the present value of the obligations of 4.23% (+50 bp) and -4.14% (-50 bp), respectively. These changes would be offset in part by increases or decreases in the fair value of the assets. The funding status of the defined benefit obligations in 2025 and the two preceding years is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Present value of the obligations | 8,164 | 8,898 | 9,451 | | Less- | | | | | Fair value of plan assets | 8,740 | 9,400 | 10,208 | | Provisions - Provisions for pensions | (576) | (502) | (757) | | Of which: | | | | | Internal provisions for pensions | 25 | 28 | 76 | | Net assets for pensions | (601) | (530) | (833) | Annual report 2025721 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The amounts recognised in the consolidated income statements in relation to the aforementioned defined benefit obligations are as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Current service cost | 9 | 13 | 14 | | Interest cost (net) | (31) | (40) | (62) | | Provisions or reversal of provisions, net | | | | | Cost of services provided | — | — | — | | Others | — | — | — | | | (22) | (27) | (48) | In addition, in 2025 'Other comprehensive income – Items not reclassified to profit or loss – Actuarial gains or (-) losses on defined benefit pension plans has increased by EUR 117 million with respect to defined benefit obligations ( increase of EU R 475 and of EUR 687 million in 2024 and 2023, respectively). The changes in the present value of the accrued defined benefit obligations were as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Present value of the obligations at beginning of year | 8,898 | 9,451 | 8,982 | | Net incorporation of companies into the Group | — | — | (28) | | Current service cost | 9 | 13 | 14 | | Interest cost | 465 | 438 | 436 | | Benefits paid | (469) | (465) | (428) | | Benefits paid by settlements | — | — | (9) | | Contributions made by employees | 3 | 7 | 6 | | Past service cost | — | — | — | | Actuarial (gains)/losses | (304) | (965) | 281 | | Demographic actuarial (gains)/losses | (91) | (133) | (59) | | Financial actuarial (gains)/losses | (213) | (832) | 340 | | Exchange differences and other items | (438) | 419 | 197 | | Present value of the obligations at end of year | 8,164 | 8,898 | 9,451 | The changes in the fair value of the plan assets were as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Fair value of plan assets at beginning of year | 9,400 | 10,208 | 10,152 | | Net incorporation of companies into the Group | — | — | (41) | | Expected return on plan assets | 496 | 478 | 498 | | Benefits paid | (469) | (465) | (434) | | Contributions | 203 | 182 | 225 | | Actuarial gains/(losses) | (421) | (1,440) | (406) | | Exchange differences and other items | (469) | 437 | 214 | | Fair value of plan assets at end of year | 8,740 | 9,400 | 10,208 | In 2026 the Group expects to make current contributions to fund these obligations for amounts similar to those made in 2025. The main categories of plan assets as a percentage of total plan assets are as follows: | | | | | | --- | --- | --- | --- | | | | | | | | 2025 | 2024 | 2023 | | Equity instruments | — | — | — | | Debt instruments | 67% | 66% | 62% | | Properties | 11% | 14% | 12% | | Other | 22% | 20% | 26% | The following table shows the estimated benefits payable at 31 December 2025 for the next ten years: | | | | --- | --- | | | | | EUR million | | | 2026 | 576 | | 2027 | 485 | | 2028 | 503 | | 2029 | 527 | | 2030 | 545 | | 2031 to 2035 | 2,801 | iii. Other foreign subsidiaries Certain of the consolidated foreign entities have acquired commitments to their employees similar to post-employment benefits. At 31 December 2025, 2024 and 2023, these entities had defined- contribution and defined-benefit post-employment benefit obligations. The expenses incurred in respect of contributions to defined contribution plans amounted to EUR 110 million in 2025 (EUR 133 million at 31 December 2024  and EUR 107 million at 31 December 2023). The actuarial assumptions used by these entities (discount rates, mortality tables and cumulative annual CPI growth) are consistent with the economic and social conditions prevailing in the countries in which they are located. Specifically, the discount rate used for the flows was determined by reference to high-quality corporate bonds, except in the case of Brazil where there is no extensive corporate bond market and, accordingly the discount rate was determined by reference to the series B bonds issued by the Brazilian National Treasury Secretariat for a term coinciding with that of the obligations. In Brazil the discount rate used was between 10.52% and 10.65%, the CPI 3.00% and the mortality table the AT-2000, AT-2000 Basic y AT-2000 S10. Any changes in the main assumptions could affect the calculation of the obligations. At 31 December 2025, if the discount rate used had been decreased or increased by 50 basis points, there would have been an increase or decrease in the present value of the obligations of 3.92% (-50 bp) and -3.53% (+ 50 bp), respectively. These changes would be offset in part by increases or decreases in the fair value of the assets. Annual report 2025722 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The funding status of the obligations similar to post-employment benefits and other long-term benefits in 2025 and the two preceding years is as follows: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR million | | | | | | | 2025 | Of which business in Brazil | 2024 | 2023 | | Present value of the obligations | 6,886 | 4,569 | 6,903 | 8,485 | | Less- | | | | | | Of which: with a charge to the participants | 152 | 152 | 157 | 114 | | Fair value of plan assets | 6,284 | 4,730 | 6,502 | 7,787 | | Provisions - Provisions for pensions | 450 | (313) | 244 | 584 | | Of which: | | | | | | Internal provisions for pensions | 1,083 | 210 | 1,084 | 1,434 | | Net assets for pensions | (170) | (60) | (141) | (154) | | Unrecognised net assets for pensions | (463) | (463) | (699) | (696) | The amounts recognised in the consolidated income statements in relation to these obligations are as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Current service cost | 26 | 28 | 25 | | Interest cost (net) | 68 | 92 | 83 | | Provisions or reversion of provisions | | | | | (Actuarial gains)/losses recognised in the year | 25 | 28 | 23 | | Past service cost | — | 2 | 1 | | Pre-retirement cost | 3 | — | — | | Other | (2) | (10) | (3) | | | 120 | 140 | 129 | In addition, in 2025 'Other comprehensive income – Items not reclassified to profit or loss – Actuarial gains or (-) losses on defined benefit pension plans' has increased by EUR 136 million with respect to defined benefit obligations (increase of EUR 147 million and EUR 247 million in 2024 and 2023, respectively). The changes in the present value of the accrued obligations were as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Present value of the obligations at beginning of year | 6,903 | 8,485 | 7,578 | | Incorporation of Group companies, net | (6) | — | (20) | | Current service cost | 26 | 28 | 25 | | Interest cost | 552 | 578 | 599 | | Pre-retirement cost | 3 | — | — | | Effect of curtailment/settlement | (2) | (10) | (2) | | Benefits paid | (726) | (1,113) | (730) | | Benefits paid due to settlements | (133) | (20) | (2) | | Contributions made by employees | 4 | 4 | 3 | | Past service cost | — | 2 | 1 | | Actuarial (gains)/losses | 270 | (191) | 697 | | Demographic actuarial (gains)/losses | 300 | (1) | 40 | | Financial actuarial (gains)/losses | (30) | (190) | 657 | | Exchange differences and other items | (5) | (860) | 336 | | Present value of the obligations at end of year | 6,886 | 6,903 | 8,485 | The changes in the fair value of the plan assets were as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Fair value of plan assets at beginning of year | 6,502 | 7,787 | 7,321 | | Incorporation of Group companies, net | — | — | (16) | | Expected return on plan assets | 556 | 551 | 588 | | Benefits paid | (752) | (1,022) | (644) | | Contributions | 134 | 477 | 124 | | Actuarial gains/(losses) | (201) | (304) | 110 | | Settlements gains/(losses) | (1) | — | — | | Exchange differences and other items | 46 | (987) | 304 | | Fair value of plan assets at end of year | 6,284 | 6,502 | 7,787 | In 2026 the Group expects to make contributions to fund these obligations for amounts similar to those made in 2025. Annual report 2025723 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The main categories of plan assets as a percentage of total plan assets are as follows: | | | | | | --- | --- | --- | --- | | | | | | | | 2025 | 2024 | 2023 | | Equity instruments | 14% | 13% | 11% | | Debt instruments | 79% | 79% | 83% | | Properties | 1% | 1% | 1% | | Other | 6% | 7% | 5% | The following table shows the estimated benefits payable at 31 December 2025 for the next ten years: | | | | --- | --- | | | | | EUR million | | | 2026 | 746 | | 2027 | 736 | | 2028 | 740 | | 2029 | 744 | | 2030 | 747 | | 2031 to 2035 | 3,790 | #### d) Provisions for taxes and other legal #### contingencies and Other provisions 'Provisions - Provisions for taxes and other legal contingencies' and 'Provisions - Other provisions', which include, inter alia, provisions for restructuring costs and tax-related and non-tax-related proceedings, were estimated using prudent calculation procedures in keeping with the uncertainty inherent to the obligations covered. The definitive date of the outflow of resources embodying economic benefits for the Group depends on each obligation. In certain cases, these obligations have no fixed settlement period and, in other cases, depend on the legal proceedings in progress. The detail, by geographical area, of Provisions for taxes and other legal contingencies and Other provisions is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Recognised by Spanish companies | 2,033 | 1,924 | 1,921 | | Recognised by other EU companies | 310 | 694 | 433 | | Recognised by other companies | 2,650 | 2,433 | 2,280 | | Of which: | | | | | Brazil | 1,530 | 1,445 | 1,618 | | United Kingdom A | 736 | 654 | 373 | | | 4,993 | 5,051 | 4,634 | A. Of which GBP 461 million (EUR 528.1 million) correspond to the Financial Conduct Authority (FCA) review of the Vehicle Finance Market as detailed in note 25.e.ii. Set forth below is the detail, by type of provision, of the balance at 31 December 2025, 2024 and 2023 of Provisions for taxes and other legal contingencies and Other provisions. The types of provision were determined by grouping together items of a similar nature: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Provisions for taxes | 720 | 727 | 745 | | Provisions for employment-related proceedings (Brazil) | 594 | 458 | 611 | | Provisions for other legal proceedings | 1,675 | 1,532 | 1,359 | | Provision for customer remediation | 826 | 1,001 | 454 | | Provision for restructuring | 279 | 589 | 596 | | Other | 899 | 744 | 869 | | | 4,993 | 5,051 | 4,634 | Relevant information is set forth below in relation to each type of provision shown in the preceding table. The provisions for taxes include provisions for tax-related proceedings. The provisions for employment-related proceedings (Brazil) relate to claims filed by trade unions, associations, the prosecutor’s office and ex-employees claiming employment rights to which, in their view, they are entitled, particularly the payment of overtime and other employment rights, including litigation concerning retirement benefits. The number and nature of these proceedings, which are common for banks in Brazil, justify the classification of these provisions in a separate category or as a separate type from the rest. The Group calculates the provisions associated with these claims in accordance with past experience of payments made in relation to claims for similar items. When claims do not fall within these categories, a case-by-case assessment is performed and the amount of the provision is calculated in accordance with the status of each proceeding and the risk assessment carried out by the legal advisers. The provisions for other legal proceedings include provisions for court, arbitration or administrative proceedings (other than those included in other categories or types of provisions disclosed separately) brought against Grupo Santander companies. The provisions for customer remediation include mainly the estimated cost of payments to remedy errors relating to the sale of certain products in the UK, the CHF mortgage portfolio of Poland, as well as the estimated amount related to the floor clauses of Banco Popular Español, S.A.U in Spain. To calculate the provision for customer remediation, the best estimate of the provision made by management is used, which is based on the estimated number of claims to be received and, of these, the number that will be accepted, as well as the estimated average payment per case. The provisions for restructuring include only the costs arising from restructuring processes carried out by the various Group companies. Lastly, the Other heading contains very atomized and individually insignificant provisions, such as the provisions to cover the operational risk of the different offices of the Group. Qualitative information on the main litigation is provided in Note 25 e to the consolidated financial statements. Annual report 2025724 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The Group's general policy is to record provisions for tax and legal proceedings in which the Group assesses the chances of loss to be probable and the Group does not record provisions when the chances of loss are possible or remote. Grupo Santander determines the amounts to be provided for as its best estimate of the expenditure required to settle the corresponding claim based, among other factors, on a case-by-case analysis of the facts and the legal opinion of internal and external counsel or by considering the historical average amount of the loss incurred in claims of the same nature. The definitive date of the outflow of resources embodying economic benefits for the Group depends on each obligation. In certain cases, the obligations do not have a fixed settlement term and, in others, they depend on legal proceedings in progress. Regarding their variations in fiscal year 2025, in provisions for labour processes and others of a legal nature, EUR 524 million and EUR 185 million were recorded in Brazil in 2025, making payments of EUR 384 million and EUR 159 million, respectively. #### e) Litigation and other matters i. Tax-related litigation At 31 December 2025 the main tax-related proceedings concerning the Group were as follows: • Legal actions filed by Banco Santander (Brasil) S.A. and other Group entities to avoid the application of Law 9.718/98, which modifies the basis to calculate Programa de Integraçao Social (PIS) and Contribuição para Financiamento da Seguridade Social (COFINS), extending it to all the entities income, and not only to the income from the provision of services. In relation of Banco Santander (Brasil) S.A. process, in 2015 the Federal Supreme Court (FSC) admitted the extraordinary appeal filed by the Federal Union regarding PIS, and dismissed the extraordinary appeal lodged by the Brazilian Public Prosecutor's Office regarding COFINS contribution, confirming the decision of Federal Regional Court favourable to Banco Santander (Brasil) S.A. of August 2007. The Federal Supreme Court also admitted the appeals related to the other Group entities both for PIS and COFINS. On June 13, 2023, the Federal Supreme Court ruled unfavorably 2 cases through General Repercussion (Theme 372), including Banco Santander (Brasil) S.A. case. The Bank has filed a new appeal, considering the possible loss as a contingent liability. The cases of the other Group entities are no longer susceptible of appeal and a provision has been recognized for the amount of the estimated loss. • Banco Santander (Brasil) S.A. and other Group companies in Brazil have appealed against the assessments issued by the Brazilian tax authorities questioning the deduction of loan losses in their income tax returns (Imposto sobre a Renda das Pessoas Jurídicas - IRPJ - and Contribuçao Social sobre o Lucro Liquido - CSLL-) in relation to different administrative processes of various years on the ground that the requirements under the applicable legislation were not met. The appeals, which involves several cases, are pending decision in different administrative and judicial instances. No provision was recognised in connection with the amount considered to be a contingent liability. • Banco Santander (Brasil) S.A. and other Group companies in Brazil are involved in administrative and legal proceedings against several municipalities that demand payment of the Service Tax on certain items of income from transactions not classified as provisions of services. There are several cases in different judicial instances. A provision was recognised in connection with the amount of the estimated loss. • Banco Santander (Brasil) S.A. and other Group companies in Brazil are involved in administrative and legal proceedings against the tax authorities in connection with the taxation for social security purposes of certain items which are not considered to be employee remuneration. There are several cases in different judicial instances. A provision was recognised in connection with the amount of the estimated loss. • In May 2003 the Brazilian tax authorities issued separate infringement notices against Santander Distribuidora de Títulos e Valores Mobiliarios, Ltda. (DTVM, actually Santander Brasil Tecnología S.A.) and Banco Santander (Brasil) S.A. in relation to the Provisional Tax on Financial Movements (Contribuição Provisória sobre Movimentação Financeira) of the years 2000 to 2002. The administrative discussion ended unfavourably for both companies, and on July 3, 2015, filed a lawsuit requesting the cancellation of both tax assessments. The lawsuit was judged unfavourably in first instance. Therefore, both plaintiffs appealed to the court of second instance. In December 2020, the appeal was decided unfavourably and the judgement was appealed before the higher courts. This case fell within the scope of the Comprehensive Transaction Programme (Programa de Transaçao Integral) established by the Ministry of Finance, and in 2025 a final settlement was reached. The amounts paid under the terms of the Transaction were fully provisioned. • In December 2010 the Brazilian tax authorities issued an infringement notice against Santander Seguros S.A. (Brasil), (currently Zurich Santander Brasil Seguros e Previdência S.A.), as the successor by merger to ABN AMRO Brasil dois Participações S.A., in relation to income tax (IRPJ and CSLL) for 2005, questioning the tax treatment applied to a sale of shares of Real Seguros, S.A. The administrative discussion ended unfavourably, and the CARF decision has been appealed at the Federal Justice. As the former parent of Santander Seguros S.A. (Brasil) (currently Zurich Santander Brasil Seguros e Previdência S.A.), Banco Santander (Brasil) S.A. is liable in the event of any adverse outcome of this proceeding. No provision was recognised in connection with this proceeding as it is considered to be a contingent liability. • In November 2014 the Brazilian tax authorities issued an infringement notice against Banco Santander (Brasil) S.A. in relation to corporate income tax (IRPJ and CSLL) for 2009 questioning the tax-deductibility of the amortisation of the goodwill of Banco ABN AMRO Real S.A. performed prior to the absorption of this bank by Banco Santander (Brasil) S.A., but accepting the amortisation performed after the merger. The Bank appealed before the Higher Chamber of CARF, and a final favourable decision was obtained in April 2024. No provision was recognised in connection with this proceeding as it was considered to be a contingent liability. Annual report 2025725 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | • Banco Santander (Brasil) S.A. has also appealed against infringement notices issued by the tax authorities questioning the tax deductibility of the amortisation of the goodwill arising on the acquisition of Banco Comercial e de Investimento Sudameris S.A from years 2007 to 2012. In May and October 2024, the appeal related to period 2009 to 2012 was finally rejected by the CARF and the resolution was appealed at the Federal Justice. No provision was recognised in connection with this matter as it was considered to be a contingent liability. • Banco Santander (Brasil) S.A. and other companies of the Group in Brazil are undergoing administrative and judicial procedures against Brazilian tax authorities for not admitting tax compensation with credits derived from other tax concepts, not having registered a provision for the amount considered to be a contingent liability. • Banco Santander (Brasil) S.A. is involved in appeals in relation to infringement notices initiated by tax authorities regarding the offsetting of tax losses in the CSLL of year 2009 and 2019. The appeals are pending decision at the administrative level. No provision was recognised in connection with this matter as it is considered to be a contingent liability. • Banco Santander (Brasil) S.A. filed a suspensive judicial measure aiming to avoid the withholding income tax (Imposto sobre a Renda Retido na Fonte - IRRF), on payments derived from technology services provided by Group foreign entities. A favorable decision was handed down and an appeal was filed by the tax authority at the Federal Regional Court, where it awaits judgment. No provision was recognized as it is considered to be a contingent liability. • Brazilian tax authorities have issued infringement notices against Getnet Adquirência e Serviços para Meios de Pagamento S.A and Banco Santander (Brasil) S.A. as jointly liable in relation to corporate income tax (IRPJ and CSLL) for 2014 to 2018 questioning the tax-deductibility of the amortization of the goodwill from the acquisition of Getnet Tecnologia  Proces S.A., considering that  the company would not have complied with the legal requirements for such amortization. The tax assessment notices were appealed to the CARF. In 2024, the CARF issued a favourable partial decision on both infraction notices. In December 2024, the tax authorities issued a new infringement notice for 2019 and 2020. No provision was recognized as it is considered to be a contingent liability. The total amount for the aforementioned Brazil lawsuits that are fully provisioned is EUR 553 million, and for lawsuits that qualify as contingent liabilities is EUR 5,040 million. At the date of approval of these consolidated annual accounts, there are other less significant tax disputes. ii. Non-tax-related proceedings At 31 December 2025 the main non-tax-related proceedings concerning the Group were as follows: • Payment Protection Insurance (PPI): AXA France IARD and AXA France Vie (former GE Capital Corporation Group entities, known as Financial Insurance Company Ltd (FICL) and Financial Assurance Company Ltd (FACL), acquired by AXA SA in 2015) (together, AXA France) brought a claim against (i) Santander Cards UK Limited (formerly known as GE Capital Bank Limited (GECB), which was acquired by Banco Santander, S.A. in 2008 and subsequently transferred to Santander UK plc); and (ii) Santander Insurance Services UK Limited (a Banco Santander, S.A. subsidiary) (SISUK and together with GECB the Santander Entities). The claim relates to the allocation of liability for compensation and associated costs in respect of a large number of PPI policies distributed by GECB pre-2005, which were underwritten by FICL and FACL. On 25 July 2025, the Commercial Court of England and Wales handed down its judgment in relation to the claim brought by AXA France (the Judgment). It found against SISUK in relation to AXA France’s claim pursuant to an indemnity in an agency agreement entered into between GECB, FICL and FACL in 2000 and novated by GECB to SISUK in 2010.  It also found GECB negligent in the sale of PPI policies, but this element of the claim was time barred to PPI policies sold in the period between 2002 and 2005 and overlaps with the indemnity claim. The Judgment required the Santander Entities to pay GBP 515 million plus interest of GBP 162 million. In October 2025 the Santander Entities obtained permission to appeal the findings in the Judgment relating to the application of the indemnity arising from PPI sales occurring before the indemnity had been agreed in December 2000 (Santander Appeal).  In January 2026, AXA France obtained permission to cross-appeal the Commercial Court’s rejection of AXA France’s contribution claim made under the Civil Liability (Contribution) Act 1978 (the AXA France’s cross appeal). A decision on the Santander Appeal and AXA France’s cross appeal is expected in the second half of 2026. With respect to the Santander Appeal and AXA France’s cross- appeal, there are points of legal interpretation to be resolved and, in the case of the cross-appeal, factual points to be determined. The significant uncertainties make it difficult to predict the timing or the final impact of the resolution of the appeals for the Group. No customers have suffered loss as a consequence of the claim brought by AXA France or the Judgment, nor does it impact upon past redress paid to customers for PPI complaints. Annual report 2025726 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | • Motor Finance Broker Commissions: following the Financial Conduct Authority’s (FCA) Motor Market review in 2019 which resulted in a change in rules in January 2021, Santander Consumer (UK) plc (SCUK) has received several of county court claims and complaints in respect of its historical use of discretionary commission arrangements (DCAs) prior to the 2021 rule changes. In January 2024, the FCA commenced a review of the use of DCAs between lenders and credit brokers (the FCA Review). Pending the conclusion of its review, the FCA paused the handling of motor finance commission related complaints. The pause is currently in place until 31 May 2026, reflecting the extended timeline of the FCA's Review and subsequent Consultation (see below). After the Court of Appeal's decision rendered on 25 October 2024 within the judicial proceedings followed against DCAs of other financial entities, as of 31 December 2024, the Santander UK group Holdings recognised a provision of GBP 293.0 million (EUR 353.3 million). This provision was determined based upon the information then available. It included estimates for operational and legal costs and potential awards based on various scenarios and used a range of assumptions, including the possible outcome of the appeal to the Supreme Court in 2025 of the Court of Appeal's decision. On 1 August 2025, the Supreme Court handed down its judgment stating that motor dealers acting as credit brokers do not owe fiduciary or disinterested duties to their customers and, as a consequence, commission payments by lenders to motor dealers would not be unlawful on that basis. In addition, the Supreme Court held that an unfair relationship under s.140A of the Consumer Credit Act 1974 had arisen in one of the cases on its facts and awarded the amount of the commission paid by the lender plus interest at a commercial rate as the remedy. It also confirmed that the test for unfairness of the relationship with borrower was highly fact sensitive and it outlined a series of non-exhaustive factors to consider in assessing unfair relationships in this context (indicating that no or partial disclosure was not necessarily enough on its own to constitute an unfair relationship). Following the Supreme Court’s judgment, on 3 August 2025, the FCA announced that it aimed to publish a consultation on an industry wide redress scheme in early October (the Consultation). Further to the publication of the FCA’s Consultation on 7 October 2025, the Santander UK group submitted its comments on 12 December 2025 and continues to engage constructively with the FCA. The FCA has stated that its intention is to publish the industry wide redress scheme no later than in March 2026. In light of the proposed sectoral scheme and taking into account the objections raised and the uncertainty surrounding both the final decision to be adopted by the FCA and the outcome of any potential legal challenges, the Santander UK group has reviewed the potential impact on SCUK in relation to the vehicle finance market. The range of scenarios has been updated, which has resulted in an additional estimated charge of GBP 183 million (EUR 213.6 million). As of 31 December 2025, the total provision amounts to GBP 461 million (EUR 528.1 million). This continues to include estimates for operational and legal costs and potential awards reflecting an increased likelihood of a higher number of cases than had previously been predicted as eligible for redress as well as an increased possibility that a remedy is sought to be imposed which extends beyond reversing any damaging financial consequences caused by any unfair relationships. The provision is based on various scenarios using a range of assumptions, including potential changes to the proposed scheme following responses to the Consultation or publication of the FCA’s final scheme rules. There continue to be significant uncertainties as to the nature, extent and timing of redress payments. Therefore, while the ultimate financial impact of this matter could materially differ from the amount of the provision as of this date, such impact is not expected to be material for the Group as of the date of these financial statements. Annual report 2025727 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | • Delforca: dispute arising from equity swaps entered into by Gaesco (now Delforca 2008, S.A. (Delforca)) on shares of Inmobiliaria Colonial, S.A. Banco Santander, S.A. is claiming to Delforca before the Court of Barcelona in charge of the bankruptcy proceedings, a total of EUR 66 million from the liquidation resulting from the early termination of financial transactions due to Delforca's non-payment of the equity swaps. In the same bankruptcy proceedings, Delforca and Mobiliaria Monesa, S.A., parent of Delforca (Monesa) have in turn claimed the Bank to repay EUR 57 million, which the Bank received for the enforcement of the agreed guarantee, as a result of the aforementioned liquidation. On 16 September 2021 the Commercial Court Number 10 of Barcelona has ordered Delforca to pay the Bank EUR 66 million plus EUR 11 million in interest and has dismissed the claims filed by Delforca. This decision was appealed by Delforca, Monesa and the bankruptcy administrator. On 15 November 2023 the Provincial Court of Barcelona rendered a judgment dismissing the appeals filed by Delforca, Monesa and the bankruptcy administrator. Delforca and Monesa (not the bankruptcy administrator) filed an appeal in cassation, that was rejected in November 2025 by the First Chamber of Supreme Court and, as a result, the appeal and first instance judgments in favor of the Bank have been confirmed. Separately, Monesa, filed in 2009 a civil procedure with the Courts of Santander against the Bank claiming damages that have not been specified to date. The procedure is suspended. • 'Planos Económicos': like the rest of the banking system in Brazil, Santander Brazil has been the target of customer complaints and collective civil suits stemming mainly from legislative changes and its application to the retribution of bank deposits (economic plans). At the end of 2017, an agreement was reached between regulatory entities and the Brazilian Federation of Banks (Febraban) with the purpose of closing the lawsuits and was approved by the Supremo Tribunal Federal (the STF and the Collective Agreement). Discussions focused on specifying the amount to be paid to each affected client according to the balance in their notebook at the time of the application of the plan. Finally, the total value of the payments will depend on the number of adhesions there may be and the number of savers who have proved the existence of the account and its balance on the date the indexes were changed. In November 2018, the STF ordered the suspension of all economic plan proceedings for two years from May 2018. On 29 May 2020,  STF approved the extension of the Collective Agreement for 5 additional years starting from 3 June 2020. Condition for this extension was to include in the Collective Agreement actions related to the 'Collor I Plan'. On May 2025, the STF issued the judgment recognizing the constitutionality of the Bresser, Verão, Collor I and II plans, guaranteeing savers the receipt of the amounts established in the Collective Agreement and setting a deadline of 24 months for new adhesions. As of 31 December 2025, the provision recorded for the economic plan proceedings amounts to EUR 155.3 million. • Banco Popular´s acquisition: after the declaration of the resolution of Banco Popular, some investors filed claims against the EU’s Single Resolution Board decision, and the FROB's resolution executed in accordance with the aforementioned decision. Likewise, numerous civil lawsuits were filed against Banco Santander, S.A. alleging that the information provided by Banco Popular was erroneous and requesting from Banco Santander, S.A. the restitution of the price paid for the acquisition of the investment instruments or, where appropriate, the corresponding compensation. In relation to the direct appeals filed before the General Court of the European Union (EGC) and the Court of Justice of the European Union (CJEU), all appeals were either dismissed or discontinued. Currently there are no ongoing appeals. On 4 February 2026, the National Court issued its first rulings dismissing the actions brought against the FROB’s decision, in application of the judgments of the EGC and the CJEU. In the civil proceedings, several Spanish judges referred to the CJEU a number of preliminary questions that have already been resolved. In particular, in the judgments of 5 May 2022 (C-410/20) and 5 September 2024 (C-775/22, C-779/22, C-794/22), the CJEU stated that Directive 2014/59/EU on bank resolution prevents shareholders, subordinated debt holders, and holders of equity instruments converted into shares bringing actions against a financial institution subject to a resolution proceeding or against its successor after the resolution, claiming liability for the information contained in the prospectus, under Directive 2003/71/EC, or actions seeking the nullity of the contract of subscription of capital instruments, which, given its retroactive effects, would result in the refund of the value of such securities, plus the interest accrued as of the date of execution of the contract. In its 11 September 2025 resolution (C-687/23), the CJEU declared that the above referred TJUE resolutions do not apply to actions pursued prior to the entity’s resolution. There are currently no other preliminary questions under consideration. On 4 March 2024, in the context of preliminary proceedings 42/2017, the Central Court of Instruction No. 4 issued a ruling transforming the proceedings into Summary Proceedings and terminating the investigation phase. This ruling considers that the circumstantial evidence resulting from the investigation which could constitute a crime is basically the following: (i) an alleged misrepresentation in the prospectus of the 2016 capital increase of Banco Popular; (ii) an alleged misrepresentation in the annual accounts of Banco Popular for 2015, the interim financial statements for 2016 and the annual accounts for 2016; and (iii) the offer to the market of a distorted amount of regulatory capital, after the capital increase of 2016 (for allegedly having been granted by Banco Popular financing to clients for the subscription of shares in the aforementioned capital increase, without discounting it from the regulatory capital). According to the aforementioned ruling, these facts could constitute the crimes of fraud of investors (art. 282 of the Criminal Code) and accounting falsehood (art. 290 of the Criminal Code). All appeals filed against the ruling have been dismissed. Annual report 2025728 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The accusing parties, including the Public Prosecutor's Office, filed their indictment briefs on 28 October 2024, which included requests for compensation for civil liability and the request that not only the defendants but also several entities are held liable for such compensation, including Banco Santander, S.A., the auditing firm and several insurance companies. Following the filing of the indictment briefs, on 22 November 2024, the Court (Investigating Judge) issued an order for the opening of the oral trial against the defendants and civil liability parties, including Banco Santander, S.A. as a possible civil liable party. However, in line with what was determined by the Spanish National Court and confirmed by the Supreme Court concerning the hypothetical succession of Banco Popular by Banco Santander, S.A., the oral trial has not been opened against the Bank as possible direct civil liable party. The order to open the oral trial states that the plaintiffs have requested compensation for civil liability for a total amount of EUR 2,277.65. Additionally, the order rejects the imposition of the guarantee requested by several of the accusing parties, considering that it is unnecessary to secure the outcome of the trial. The defendants and potential civil liable parties submitted their defense writs on 4 February 2025. After that, the proceedings will be forwarded to the Criminal Chamber of the National Court for the oral trial. Regarding civil liability, the Bank considers that it has no subsidiary civil liability in light of the CJEU’s judgments of 5 May 2022 (C-410/20), 5 September 2024 (C-775/22, C-779/22, C-794/22) and 11 September 2025 (C-687/23 and C-447/23). Notwithstanding the foregoing, the Spanish National Court has stated that this issue shall be resolved within the ongoing proceedings. The estimated cost of any compensation to shareholders and bondholders of Banco Popular recognized in the 2017 accounts amounted to EUR 680 million, of which EUR 535 million were applied to the commercial loyalty program. On 15 December 2024, Banco Santander, S.A., proceeded to redeem in advance voluntarily all bonds in circulation regarding such commercial action. The CJEU judgements of 5 May 2022 (C-410/20), 5 September 2024 (C-775/22, C-779/22, C-794/22) and 11 September 2025 (C-687/23 and C-447/23) referred above, represented a very significant reduction in the risk associated with these claims. • German shares investigation: the Cologne Public Prosecution Office is conducting an investigation against the Bank and other group entities based in the UK - Santander UK plc, Santander Financial Services Plc and Cater Allen International Limited -, in relation to a particular type of tax dividend linked transactions known as cum-ex transactions. The Group is cooperating with the German authorities. According to the state of the investigations, the result, and the effects for the Group, which may potentially include the imposition of material financial consequences (penalties, and/or disgorgement of proceeds) cannot be anticipated. For this reason, the Bank has not recognized any provisions in relation to the potential imposition of financial liabilities. • Banco Santander, S.A. was sued in a legal proceeding in which the plaintiff alleges that the Bank breached his contract as CEO of the institution: in the lawsuit, the claimant mainly requested a declaratory ruling upholding the existence, validity and effectiveness of such contract and its enforcement together with the payment of certain amounts. For the case that the main request is not granted, the claimant sought a compensation for a total amount of approximately EUR 112 million or, an alternative relief for other minor amounts. Banco Santander, S.A. answered to the legal action stating that the conditions to which the appointment of that position was subject to were not met; that the executive services contract required by law was not concluded; and that in any case, the parties could terminate the contract without any justified cause. On 17 May 2021, the plaintiff reduced his claims for compensation to EUR 61.9 million. On 9 December 2021, the Court upheld the claim and ordered the Bank to compensate the claimant in the amount of EUR 67.8 million. By court order of 13 January 2022, the Court corrected and supplemented its judgment, reducing the total amount to be paid by the Bank to EUR 51.4 million and clarifying that part of this amount (buy out) was to be paid under the terms of the offer letter, i.e., entirely in Banco Santander shares, within the deferral period for this type of remuneration at the plaintiff's former employer and subject to the performance metrics or parameters of the plan in force at the Bank, which was that of 2018. As explained in note 5 of the report of the consolidated annual accounts of the year 2022, the degree of performance of these objectives was 33.3%. The Bank filed an appeal against the judgment before the Madrid Court of Appeal, which was opposed by the plaintiff. At the same time, the plaintiff filed an application for provisional enforcement of the judgment in the First Instance Court. A court order was issued ordering enforcement of the judgment, and the Bank deposited in the court bank account the full amount provisionally awarded to the claimant, including interest, for an approximate sum of EUR 35.5 million, within the voluntary compliance period. On 6 February 2023, Banco Santander was notified with the judgment of 20 January 2023 by which the Madrid Court of Appeal partially upheld the appeal filed by the Bank. The judgment has reduced the amount to be paid by EUR 8 million, which, to the extent that this amount was already paid in the provisional partial enforcement of the judgement of First Instance Court, must be returned to the Bank together with other amounts for interest, which the appeal judgement also rejects. The plaintiff deposited circa EUR 9.6 million. This amount was received by the Bank on 11 July 2023. On 11 April 2023, the Bank filed an extraordinary appeal for procedural infringement and an appeal in cassation against the Madrid Court of Appeal’s judgment before Spanish Supreme Court. The extraordinary and cassation appeals submitted by the Bank were accepted on 26 March 2025 and are pending to be resolved. Existing provisions cover the estimated risk of loss. Annual report 2025729 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | • CHF Polish Mortgage Loans: In  October 2019, the CJEU rendered its decision in relation to the effects of the potential unfairness of certain contractual clauses in CHF-Indexed loan agreements. The CJEU established that it for the national courts to determine the invalidity of a contract where it cannot be maintained without the clause declared unfair and where no supplementary provisions exist that would allow the contract to be maintained. Subsequently, in  June 2023, the CJEU confirmed that the effects of such invalidity must be determined in accordance with national law, interpreted in the light of Directive 93/13/EEC, and that claims by financial institutions exceeding the reimbursement of the loan principal and, where applicable, default interest, are contrary to the objectives of that Directive. In April 2024, the Civil Chamber of the Polish Supreme Court issued a judgment confirming that clauses relating to the mechanism for determining the exchange rate declared abusive cannot be replaced by alternative provisions and that, in the absence of a binding exchange rate, the contract is not enforceable for the parties. With regard to the effects of invalidity, the Supreme Court confirmed the existence of independent restitution claims for each party and ruled out the possibility of claiming interest or other amounts for the use of the funds. Nevertheless, certain aspects of this judgment have been subject to internal debate within the Supreme Court itself, reflecting the complexity and evolving nature of the jurisprudential framework In this context, Santander Bank Polska S.A. and Santander Consumer Bank S.A. estimate legal risk using a model that considers different possible outcomes and regularly review court rulings on this matter in order to assess changes in case law, including the impact of the aforementioned Supreme Court judgment. Settlements are being reached both with customers who have already initiated legal proceedings and with customers who have not yet filed a claim. The model used to calculate provisions for legal risks considers the evolution and expected development of such settlements. As of 31 December 2025, the total amount adjusted against the gross carrying amount of loans in accordance with IFRS 9, together with the provisions recognised under IAS 37, amounts to PLN 5,874.3 million (EUR 1,391.9 million), of which PLN3,191.7 million (EUR 756.3 million) corresponds to adjustments to the gross carrying amount under IFRS 9 and PLN 2,682.6 million (EUR 635.6 million) to provisions recognised under IAS 37. The adjustment to gross carrying amount in accordance with IFRS9 during 2025 amounted to PLN 99.7 million (EUR 23.6 million), and the additional provisions recognised under IAS 37 amounted to PLN 1245.3 million (EUR 293.8 million). Other costs related to the dispute amounted to PLN 730.5 million (EUR 172.4 million). IAS 37. As of the same date, Santander Bank Polska S.A. held a portfolio of mortgages denominated in or indexed to CHF amounting to approximately PLN 2,642.0 million (EUR 626.0 million) and recognised provisions of PLN 4,766.4 million (EUR 1,129.4 million) to cover the CHF mortgage portfolio. Santander Consumer Bank S.A. (Poland), in turn, held a portfolio of mortgages denominated in or indexed to CHF amounting to approximately PLN 735.9 million (EUR 174.4 million) and recognised provisions of PLN 1,107.9 million (EUR 262.5 million) to cover this portfolio. Notwithstanding the above, as detailed in Note 3 b), in January 2026 the Group sold a 49% stake in Santander Bank Polska S.A., which ceased to be consolidated within the Group’s perimeter as of that date. The Group continues to monitor the evolution of legal proceedings and to periodically review the adequacy of the provisions recognised, which represent the best estimate of the risk existing as of the reporting date. • Banco Santander Mexico: dispute regarding a testamentary trust constituted in 1994 by Mr. Roberto Garza Sada in Banca Serfin (currently Santander Mexico) in favor of his four sons in which he affected shares of Alfa, S.A.B. de C.V. (respectively, Alfa and the Trust). During 1999, Mr. Roberto Garza Sada instructed Santander México in its capacity as trustee to transfer 36,700,000 shares from the Trust's assets to his sons and daughters and himself. These instructions were ratified in 2004 by Mr. Roberto Garza Sada before a Notary Public. Mr. Roberto Garza Sada passed away on 14 August 2010 and subsequently, in 2012, his daughters filed a complaint against Santander Mexico alleging it had been negligent in its trustee role. The lawsuit was dismissed at first instance in April 2017 and on appeal in 2018. In May 2018, the plaintiffs filed an appeal (recurso de amparo) before the First Collegiate Court of the Fourth Circuit based in Nuevo León, which ruled in favor of the plaintiffs on 7 May 2021, annulling the 2018 appeal judgment and condemning Santander Mexico to the petitions claimed, consisting of the recovery of the amount of 36,700,000 Alfa shares, together with dividends, interest and damages. Since 2021, Santander Mexico has filed before the Supreme Court of Justice of the Nation a constitutional review challenge (recurso de revisión constitucional) against the referred decision which was initially rejected by the Supreme Court; and several appeals (recursos de reclamación) against such rejection. On 25 June 2025, one of the appeals filed by the Bank was accepted, and this decision was extended to a remaining one, which will now be resolved. In case that these appeals are resolved favorably to the Bank, the Supreme Court will decide on the merits of the constitutional review against the judgment which condemned the Bank. In parallel to the foregoing, the Bank also filed an amparo against the judgment favorable to the plaintiffs rendered by the First District Court in the State of Nuevo León before the Collegiate Courts if such State, and in 2024, the Bank requested the Supreme Court of Justice of the Nation to take up and resolve the matter through the faculty of attraction, what is pending. Annual report 2025730 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The challenges and appeals filed by the Bank imply that the judgment rendered in favour of the plaintiffs is not final, and Santander México believes that the actions taken should prevail and reverse the decision against it. The impact of a potential unfavorable resolution for Santander México will be determined in a subsequent proceeding and will also depend on the additional actions that Santander México may take in its defense, so it is not possible to determine it at this time. At the current stage of the proceedings, the provisions recorded are considered sufficient to cover the risks deriving from this claim. • Mortgage Expenses: in December 2015 the Spanish Supreme Court ruled that mortgage clauses relating to the payment of fees associated to formalizing the mortgage were abusive. On 27 November 2018, the Supreme Court agreed that the taxpayer of the documented legal acts stamp duty tax (IAJD) on the mortgage loans should be the borrower. On 9 November 2018, RDL 17/2018 came into force and modified the Law of the IAJD, establishing that the taxpayer is the Bank. On 23 January 2019, the Supreme Court ruled the distribution of the same must be 50% between the Bank and the borrower in public notary expenses and agency expenses.  The Supreme Court also ruled that the Bank must pay 100% of the Registry. On 26 October 2020, the Supreme Court ruled that the Bank is fully responsible for the management expenses; and on 27 January 2021, the Supreme Court ruled that the Bank is also responsible for the valuation expenses. In relation to the statute of limitations, on 25 April 2024, two judgments were rendered (cases C-561/21 and C-484/21) in which the Court of Justice of the European Union (CJEU) stated that the commencement of the statute of limitations for the reimbursement action of the mortgage expenses derived from the annulment of the clause, shall be fixed on the moment when the consumer has an effective knowledge of the abusive nature of the clause and its effects and that this date must not be fixed (a) on the date of payment of such expense nor of the execution of the agreement; (b) when the Supreme Court has handed down judgments stating the abusive nature of a clause similar to the one included in the consumer contract; nor (c) when the CJEU has handed down judgments confirming that the statute of limitations for the reimbursement action of the amounts derived from the annulment of contractual provisions is valid subject to its compliance with the principles of equivalence and effectiveness. The Supreme Court has confirmed this criterion in its 14 June 2024 judgment, establishing that the public dissemination of case-law declaring the abusive nature of a clause does not necessarily give rise to the limitation period of the reimbursement action derived from similar clauses. However, the 4 July 2024 judgment, rendered in the case C-450/22, the CJEU has established that it cannot be excluded a priori that, as a consequence of the occurrence of an objective event or of a notorious event, such as the amendment of the applicable legislation or a widely disseminated and debated development of jurisprudence, the court considers that the average consumer's overall perception of the floor clause has changed during the reference period and has enabled him to become aware of the potentially significant economic consequences arising from such clause. A further preliminary question concerning the statute of limitations of the reimbursement action derived from the annulment of mortgage expenses has been raised before the CJEU by the First Instance Court No 8 of La Coruña. In December in 2024, the Supreme Court handed down two additional judgments regarding statute of limitations, in which it determines that the date to be considered for the purposes of the application of Directive 93/1994 and, consequently, the statute of limitations detailed in its previous judgments, is 31 December 1994 (i.e. the date when the deadline for its transposition ended). This is based on the principle of interpretation in accordance with directives not transposed (applicable once their transposition period has expired). The recorded provision includes the best estimate of Group’s liability for this matter. Banco Santander and the other Group companies are subject to claims and, therefore, are party to certain judicial and administrative proceedings incidental to the normal course of their business including those in connection with lending activities, relationships with employees and other commercial or tax matters additional to those referred to here. With the information available to it, the Group considers that, at 31 December 2025, it had reliably estimated the obligations associated with each proceeding and had recognized, where necessary, sufficient provisions to cover reasonably any liabilities that may arise as a result of these tax and legal risks. Disputes in which risk and/or provisions have been registered but are not disclosed is justified on the basis that it would be prejudicial to the proper defense of the Group. Subject to the qualifications made, it also believes that any liability arising from such claims and proceedings will not have, overall, a material adverse effect on the Group’s business, financial position, or results of operations. 26. #### Other liabilities The detail of Other liabilities in the consolidated balance sheets is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Transactions in transit | 707 | 910 | 767 | | Accrued expenses and deferred income | 9,018 | 9,003 | 9,136 | | Other | 6,212 | 6,431 | 7,695 | | | 15,937 | 16,344 | 17,598 | Annual report 2025731 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 27. #### Tax matters #### a) Consolidated Tax Group According to current Spanish regulation, the Tax Consolidated Group includes Banco Santander, S.A. as the parent company and, as subsidiaries, those Spanish subsidiaries that meet the requirements established by the regulations on the taxation of consolidated groups. The other Group companies file income tax returns in accordance with the tax regulations applicable to them. #### b) Years open for review by the tax authorities In relation to the partial scope tax audit of Corporate Income Tax for fiscal year 2020 and Value Added Tax for fiscal years 2020 to 2022, initiated in April 2024, in December 2025 the Spanish tax authorities issued a Corporate Income Tax assessment, which has been appealed before the Central Economic-Administrative Court, and the VAT assessments were still pending at the close of the financial year. The main appeals filed against assessments issued in prior audits remain pending before the Central Economic-Administrative Court (Corporate Income Tax and Value Added Tax for fiscal years 2017 to 2019) and before the National Appellate Court (Corporate Income Tax for fiscal years 2003 to 2015). Banco Santander, S.A., as the parent company of the Tax Consolidated Group, considers, based on the advice of its external legal counsel, that the adjustments made should not have a significant impact on the consolidated annual accounts, as there are strong arguments for defense in the appeals filed against these assessments. Consequently, no provision has been recognized in this respect. Furthermore, it should be noted that, in those cases where it was considered appropriate, the available mechanisms have been used to avoid international double taxation. At the date of approval of these consolidated annual accounts, subsequent years up to and including 2025, are subject to review. The other entities have the corresponding years open for review, pursuant to their respective tax regulations. Due to possible different interpretations which can be made of the tax regulations, the outcome of the tax audits of the rest of years subject to review might give rise to contingent tax liabilities which cannot be objectively quantified. However, the Group’s tax advisers consider that it is unlikely that such tax liabilities will materialize, and that in any event the tax charge arising therefrom would not materially affect the Group’s consolidated financial statements. #### c) Reconciliation The reconciliation of the income tax expense calculated at the tax rate applicable in Spain ( 30%) to the income tax expense recognised and the detail of the effective tax rate are as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Consolidated profit (loss) before tax: | | | | | From continuing operations | 18,681 | 17,347 | 15,005 | | From discontinued operations | 1,950 | 1,680 | 1,454 | | | 20,631 | 19,027 | 16,459 | | Income tax at tax rate applicable in Spain (30%) | 6,189 | 5,708 | 4,938 | | By the effect of application of the various tax rates applicable in each countryA | (103) | 115 | (100) | | Of which: | | | | | Brazil | 264 | 413 | 198 | | United Kingdom | (42) | (53) | (51) | | United States | (60) | (25) | (28) | | Chile | (36) | (33) | (28) | | Poland | (224) | (183) | (164) | | Effect of profit or loss of associates and joint ventures | (207) | (213) | (184) | | USA electric vehicle leasing incentives | (203) | (258) | (259) | | Global minimum tax Pillar Two | 6 | 14 | — | | Effect of reassessment of deferred taxes | (101) | 68 | — | | Permanent differences and other | (450) | (151) | (119) | | Income tax | 5,131 | 5,283 | 4,276 | | Effective tax rate | 24.87% | 27.77% | 25.98% | | Of which: | | | | | Continuing operations | 4,723 | 4,844 | 3,880 | | Discontinued operations (Note 37) | 408 | 439 | 396 | | Of which: | | | | | Current taxes | 5,666 | 4,855 | 5,568 | | Deferred taxes | (535) | 428 | (1,292) | | Income tax (receipts)/payments | 4,954 | 5,880 | 5,214 | A. Calculated by applying the difference between the tax rate applicable in Spain and the tax rate applicable in each jurisdiction to the profit or loss contributed to the Group by the entities which operate in each jurisdiction. Annual report 2025732 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### d) Tax recognised in equity In addition to the income tax recognised in the consolidated income statement, the Group recognised the following amounts in consolidated equity in 2025, 2024 and 2023: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Other comprehensive income | | | | | Items not reclassified to profit or loss | 115 | 85 | 358 | | Actuarial gains or (-) losses on defined benefit pension plans | 63 | 172 | 302 | | Changes in the fair value of equity instruments measured at fair value through other comprehensive income | 4 | (4) | 20 | | Financial liabilities at fair value with changes in results attributable to changes in credit risk | 48 | (83) | 36 | | Items that may be reclassified to profit or loss | (440) | 54 | (919) | | Cash flow hedges | (207) | (205) | (732) | | Changes in the fair value of debt instruments through other comprehensive income | (204) | 261 | (214) | | Hedging instruments (items not designated) | 3 | — | — | | Non-current assets held for sale | (32) | — | — | | Other recognised income and expense of investments in subsidiaries, joint ventures and associates | — | (2) | 27 | | Total | (325) | 139 | (561) | #### e) Deferred taxes 'Tax assets' in the consolidated balance sheets includes debit balances with the Public Treasury relating to deferred tax assets. 'Tax liabilities' includes the liability for the Group’s various deferred tax liabilities. In accordance with EU Regulation 575/2013 on prudential requirements for credit institutions and investment firms (CRR), and subsequently amended by EU Regulation 2019/876 of the European Parliament and of the Council, those deferred tax assets that do not rely on future profitability arising from temporary differences (referred to hereinafter as 'monetizable deferred tax assets’), meeting certain conditions, should not be deducted from regulatory capital and should not be risk-weighted at 250% according to the thresholds set out in Article 48 of the said Regulation, but shall apply a risk weight of 100% under Article 39. Annual report 2025733 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The detail of deferred tax assets, by classification as monetizable or non-monetizable assets, and of deferred tax liabilities at 31 December 2025 , 2024 and 2023 is as follows: | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | EUR million | | | | | | | | | | | 2025 | | | 2024 | | | 2023 | | | | MonetizableA | Other | | MonetizableA | Other | | MonetizableA | Other | | Tax assets | 10,725 | 8,219 | | 10,309 | 8,861 | | 11,099 | 9,668 | | Tax losses and tax credits | — | 2,354 | | — | 2,367 | | — | 2,393 | | Temporary differences | 10,725 | 5,865 | | 10,309 | 6,494 | | 11,099 | 7,275 | | Of which: | | | | | | | | | | Non-deductible provisions | — | 1,970 | | — | 1,784 | | — | 1,965 | | Valuation of financial instruments | — | 810 | | — | 1,486 | | — | 1,543 | | Loan losses | 8,471 | 1,341 | | 7,880 | 1,103 | | 8,248 | 1,577 | | Pensions | 2,254 | 426 | | 2,429 | 423 | | 2,851 | 665 | | Valuation of tangible and intangible assets | — | 832 | | — | 885 | | — | 1,060 | | | | | | | | | | | | Tax liabilities | — | 5,904 | | — | 6,276 | | — | 6,086 | | Temporary differences | — | 5,904 | | — | 6,276 | | — | 6,086 | | Of which: | | | | | | | | | | Valuation of financial instruments | — | 1,980 | | — | 2,412 | | — | 2,059 | | Valuation of tangible and intangible assets | — | 2,714 | | — | 2,797 | | — | 2,594 | | Investments in Group companies | — | 427 | | — | 403 | | — | 378 | A. In 2023, the Spanish Economic Administrative Court ruled that in 2017 the requirements for the conversion of part of the monetizable assets of Popular Group into a credit against the Tax Administration were met, allowing the conversion to EUR 995 million. Banco Santander was refunded without impact on results. The favourable Economic Administrative Court decision was declared harmful to the public interests and challenged at the National Appellate Court by the Tax Administration. The estimation of this appeal, which is pending at the National Appellate Court,  would imply that Grupo Santander should repay the amount refunded and would, once again, credit these monetizable assets with no impact on results except for late payment interests. However, it is considered that there are strong defense arguments in relation to this appeal. Grupo Santander only recognises deferred tax assets for temporary differences or tax loss and tax credit carryforwards where it is considered probable that consolidated entities that generated them will have sufficient future taxable profits against which they can be utilised. The deferred tax assets and liabilities are reassessed at the reporting date in order to ascertain whether any adjustments need to be made on the basis of the findings of the analyses performed. These analyses take into consideration all evidence, both positive and negative, of the recoverability of such deferred tax assets, among which we can find, (i) the results generated by the different entities in previous years, (ii) the projections of results of each entity or fiscal group, (iii) the estimation of the reversal of the different temporary differences according to their nature and (iv) the period and limits established under the applicable legislation of each country for the recovery of the different deferred tax assets, thus concluding on the ability of each entity or fiscal group to recover the deferred tax assets registered. The projections of results used in this analysis are based on the financial planning approved by both the local directions of the corresponding units and by the Group's directors. The Group's budget estimation process is common for all units. The Group's management prepares its financial planning based on the following key assumptions: a) Microeconomic variables of the entities that make up the fiscal group in each location: the existing balance structure, the mix of products offered and the commercial strategy at each moment defined by local directions are taken into account, based on the competition, regulatory and market environment. b) Macroeconomic variables: estimated growths are based on the evolution of the economic environment considering the expected evolution in the gross domestic product of each location, and the forecasts of interest rates, inflation and exchange rates fluctuations. These data are provided by the Group’s Studies Service. Annual report 2025734 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Additionally, the Group performs retrospective contrasts (backtesting) on the variables projected in the past. The differential behaviour of these variables with respect to the real market data is considered in the projections estimated in each fiscal year. Thus, and in relation to Spain, the deviations identified by the Directors in recent past years are due to a combination of exogenous factors, mainly the changing impact of the macroeconomic environment and competition, and management actions, such as the acceleration of restructuring plans, investment in digitalisation, and the optimisation of capital and shareholder returns. Finally, and given the degree of uncertainty of these assumptions on the referred variables, the Group conducts a sensitivity analysis of the most significant assumptions considered in the deferred tax assets’ recoverability analysis, considering any reasonable change in the key assumptions on which the projections of results of each entity or fiscal group and the estimation of the reversal of the different temporary differences are based. In relation to Spain, the sensitivity analysis has consisted of making reasonable changes to the key assumptions, including adjusting 50 basis points for growth (gross domestic product) and adjusting 50 basis points for inflation. Relevant information is set forth below for the main countries which have recognised deferred tax assets: #### Spain The deferred tax assets recognised at the Consolidated Tax Group total EUR 7,183 million, of which EUR 5,069 million were for monetizable temporary differences with the right to conversion into a credit against the tax administration as explained before, EUR 1,433 million for other temporary differences and EUR 681 million for tax losses and credits. #### Brazil The deferred tax assets recognised in Brazil total EUR 7,465, of which EUR 5,606 million were for monetizable temporary differences, EUR 1,150 for other temporary differences and EUR 709 for tax losses and credits. #### Mexico The deferred tax assets recognized in Mexico total EUR 1,542, of which EUR 1,511 were for temporary differences and EUR 31 for tax losses and credits. #### United States The deferred tax assets recognised in the United States total EUR 1,026, of which EUR 253 were for temporary differences and EUR 773 for tax losses and credits. The Group estimates that the recognised deferred tax assets for temporary differences, tax losses and credits in the different jurisdictions could be recovered in a maximum period of 15 years. Annual report 2025735 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The changes in Tax assets - Deferred and Tax liabilities - Deferred in the last three years were as follows: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | EUR million | | | | | | | | | | Balance at 1 January 2025 | (Charge)/ Credit to income | Foreign currency balance translation differences and other items | (Charge)/Credit to asset and liability valuation adjustments | Reclassificat ion no- current asset held for sale | Acquisition for the year (net) | Balance at 31 December 2025 | | Deferred tax assets | 19,170 | 1,107 | (102) | (132) | (1,130) | 31 | 18,944 | | Tax losses and tax credits | 2,367 | 82 | (107) | — | — | 12 | 2,354 | | Temporary differences | 16,803 | 1,025 | 5 | (132) | (1,130) | 19 | 16,590 | | Of which monetizable | 10,309 | 455 | (39) | — | | — | 10,725 | | Deferred tax liabilities | (6,276) | (572) | 108 | (232) | 1,064 | — | (5,904) | | Temporary differences | (6,276) | (572) | 108 | (232) | 1,064 | 4 | (5,904) | | | 12,894 | 535 | 6 | (364) | (66) | 31 | 13,040 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | | | | | | | Balance at 1 January 2024 | (Charge)/ Credit to income | Foreign currency balance translation differences and other items | (Charge)/Credit to asset and liability valuation adjustments | Acquisition for the year (net) | Balance at 31 December 2024 | | Deferred tax assets | 20,767 | 119 | (1,670) | (41) | (5) | 19,170 | | Tax losses and tax credits | 2,393 | 114 | (139) | — | (1) | 2,367 | | Temporary differences | 18,374 | 5 | (1,531) | (41) | (4) | 16,803 | | Of which monetizable | 11,099 | 147 | (937) | — | — | 10,309 | | Deferred tax liabilities | (6,086) | (547) | 142 | 215 | — | (6,276) | | Temporary differences | (6,086) | (547) | 142 | 215 | — | (6,276) | | | 14,681 | (428) | (1,528) | 174 | (5) | 12,894 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | | | | | | | Balance at 1 January 2023 | (Charge)/ Credit to income | Foreign currency balance translation differences and other items | (Charge)/Credit to asset and liability valuation adjustments | Acquisition for the year (net) | Balance at 31 December 2023 | | Deferred tax assets | 20,787 | 629 | (130) | (422) | (97) | 20,767 | | Tax losses and tax credits | 1,778 | 392 | 224 | — | (1) | 2,393 | | Temporary differences | 19,009 | 237 | (354) | (422) | (96) | 18,374 | | Of which monetizable | 10,660 | 1,232 | (787) | — | (6) | 11,099 | | Deferred tax liabilities | (6,428) | 663 | 3 | (338) | 14 | (6,086) | | Temporary differences | (6,428) | 663 | 3 | (338) | 14 | (6,086) | | | 14,359 | 1,292 | (127) | (760) | (83) | 14,681 | Also, the Group did not recognise deferred tax assets amounting to approximately EUR 11,240 million  of which EUR 6,420 million relate to tax losses, EUR 3,430 million to tax credits, and EUR 1,390 million to other concepts. Annual report 2025736 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### f) Global Minimum Tax Pillar Two The Global Minimum Tax Model Rules, known as Pillar Two and approved in 2021 by the OECD Inclusive Framework, require multinational groups with revenues exceeding EUR 750 million to be subject to a minimum tax rate of 15% on adjusted accounting profit, calculated on a jurisdiction-by-jurisdiction basis. The OECD has complemented these rules through the approval of administrative guidance and a document on transitional safe harbours applicable to fiscal years 2024 to 2026. In January 2026, the application of the transitional safe harbours was extended for an additional year, and new permanent safe harbours were approved with the aim of simplifying the application of the Model Rules and implementing the 'side-by-side agreement' reached in June 2025 within the G7, which will apply from 2026 to multinational groups with a U.S. parent company. In the European Union, in December 2022, the Council approved Directive (EU) 2022/2523 on ensuring a global minimum level of taxation for multinational enterprise groups and large scale domestic groups in the Union, setting 1 January 2024 as the entry- into-force date of the new minimum taxation. The Directive implements the OECD Inclusive Framework Pillar Two rules within the European Union, while also extending their application to large domestic groups. In Spain, on 20 December 2024, Law 7/2024 was approved, establishing a Supplementary Tax to ensure a global minimum level of taxation for multinational groups and large domestic groups, effective as from 1 January 2024. This Law transposes Directive (EU) 2022/2523 and also establishes a domestic supplementary tax aligned with the Pillar Two rules. In April 2025, Royal Decree 252/2025 was published, approving the implementing regulations of the Law. With regard to other jurisdictions, the rules on the new global minimum tax are already in force in most of the main geographies in which the Group operates, with the exception of Mexico, Chile, and Argentina. The Pillar Two rules require calculating, in each jurisdiction in which the Group operates, the effective tax rate resulting from comparing income tax expense with accounting profit, both subject to certain adjustments. If, in a given jurisdiction, this rate is below 15%, Banco Santander, as the ultimate parent entity, must pay the difference to the Spanish tax authorities as a supplementary tax, unless a domestic supplementary tax aligned with the Pillar Two rules (a qualified domestic tax) has been approved in that jurisdiction, in which case the amount will be paid to the local tax authorities. Both Banco Santander, S.A., as the ultimate parent entity, and the subsidiaries resident in jurisdictions where a qualified domestic tax has been approved, have estimated the supplementary taxes accrued, taking into account the application of the transitional safe harbours in fiscal years 2024 and 2025. These safe harbours mean that the supplementary tax, whether at the level of the parent entity or in jurisdictions that have adopted a qualified domestic tax, is not payable provided that any of the following conditions are met: (i) the effective tax rate calculated based on country-by-country reporting data exceeds 15% in 2024 and 16% in 2025; (ii) the Group’s presence in a jurisdiction is not significant if below EUR 10 million and profit before tax is below EUR 1 million; or (iii) profit before tax is lower than the amount resulting from the sum of tangible fixed assets and employee expenses adjusted by a certain percentage that varies annually. This supplementary tax expense recognized by the Group has not been significant, as the effective tax rates calculated in accordance with the Pillar Two rules in most of the jurisdictions in which the Group operates are above 15%. Nevertheless, the new regulations require the provision of a large amount of information to the tax authorities in the jurisdictions where the Group is present, broken down on an entity-by-entity basis, which involves a significant administrative burden. #### g) Tax reforms In 2025 and prior years, the following significant tax reforms were approved: In Spain, in 2022, Law 38/2022 was approved, establishing a temporary levy payable by credit institutions and financial credit institutions in fiscal years 2023 and 2024. The levy amounted to 4.8% of the sum of net interest income and net fees and commissions from the activity carried out in Spain in the previous year. The payment obligation arose on the first day of each fiscal year. The expense recognized for this temporary levy amounted to EUR 224 million in 2023 and EUR 334 million in 2024. However, the tax authorities have audited both years and consider that an additional amount is payable due to differences in the criteria applied in determining the taxable base, which are currently being discussed by the Bank. Furthermore, the Law established, for 2023, a 50% limitation on the inclusion of individual tax losses in the taxable base of the Tax Consolidated Group, setting a 10-year period for the reversal of this positive adjustment. On 20 December 2024, Law 7/2024 was approved, which, among other tax measures, introduced a tax on the net interest margin and commissions earned in Spanish territory by certain financial institutions, with accrual on 1 January of fiscal years 2025, 2026 and 2027. The taxable base, with certain changes compared to that of the temporary levy, is now calculated on an individual basis for each financial institution, and the tax liability is determined in accordance with a progressive rate scale ranging from 1% to 7%, after applying certain deductions. On 24 December 2024, Royal Decree-Law 9/2024 was published in the Official State Gazette, amending certain technical aspects of the tax and postponing its accrual to 31 January of those fiscal years. This Royal Decree-Law was abolished on 22 January 2025 and, therefore, no expense was recognized for the new tax in respect of 2024 income in accordance with the legislation in force at that time (EUR 392 million were paid during the year). In 2025, the expense corresponding to income accrued during the financial year, recognised as income tax, amounts to €353 million and will be paid in 2026. The Group considers that both the temporary levy and the tax on net interest margin and fees and commissions are contrary to the Spanish and European Union constitutional and legal principles and has therefore disputed the corresponding self-assessments, requesting a refund of the amounts paid. Annual report 2025737 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Additionally, the aforementioned Law 7/2024 once again establishes, for fiscal years 2024 and 2025, a 50% limitation on the inclusion of individual tax losses in the taxable base of the Tax Consolidated Group, setting a 10-year period for the reversal of this positive adjustment. Likewise, this Law reintroduces the limits provided for in Royal Decree-Law 3/2016—which was declared unconstitutional by the Constitutional Court ruling of 18 January 2024—on the utilization of monetizable deferred tax assets and the offsetting of tax losses (with the limit reduced from 70% to 25%), as well as on the application of deductions to avoid double taxation (50%), and also reinstates the mandatory reversal of impairments on shareholdings that were deductible in prior years by third parties, regardless of any recovery in the value of the investees. In Brazil, Law 14,467 enacted in 2022 with effect from 2025, amends the rules on the tax deductibility of credit provisions in financial institutions, bringing those rules closer to the accounting recognition criterion. In 2024, Law 15,078 was published, allowing the recovery of the accumulated balance of provisions of nondeductible loans at the end of 2024 within a seven-year period (with the option to extend to ten years) from January 2026. In 2025, several Legislative Decrees and decisions of the Federal Supreme Court were published concerning the Financial Transactions Tax (IOF), amending the applicable rules and setting new rates for its various categories: (i) IOF Credit (local loans to legal entities increased from 1.88% to a maximum of 3.37% per annum); (ii) IOF Insurance (a 5% rate was introduced on the excess of certain contributions to life insurance policies); and (iii) IOF Foreign Exchange (payments for the import of services and royalties paid abroad rose from 0.38% to 3.5%). In December 2023, Congress approved Constitutional Amendment 132/2023 on indirect taxation reform, initiating the legislative development process, which culminated in the enactment of Supplementary Laws 214/2025 in January 2025 and 227/2026 in January 2026. This reform replaces the various existing indirect taxes in Brazil, -applicable at the federal, regional and municipal levels-, with two taxes administered at federal level (contribution on goods and services and selective tax) and other administered at regional and municipal levels (tax on goods and services). The new system will be gradually implemented over a transitional period of 8 years (from 2026 to 2033). In 2024, Law No. 14.973/2024 partially extended, until 31 December 2027, an optional social contribution regime for employees applicable to certain sectors of activity, allowing such contributions to be calculated as a percentage of gross income (ranging from 1% to 4.5%, depending on the sector), rather than under the general regime, which applies a 20% rate to employee payroll. In November 2025, Law No. 15.270 was published which, among other measures, introduced a 10% withholding tax on ordinary dividends paid abroad as from 1 January 2026. In December 2025, Supplementary Law No. 224 was enacted, which, among other measures: (i) increased the withholding tax on Interest on equity (juros sobre o capital próprio) from 15% to 17.5%; (ii) raised the CSLL rate applicable to non-bank financial institutions as from 1 April 2026 on a gradual basis: payment institutions to 12% in 2026 and 2027, and 15% as from 2028; and credit, financing and capitalisation companies to 17.5% in 2026 and 2027, and 20% as from 2028 (the rate for banks remains at 20% and for other financial institutions at 15%), and (iii) introduced an automatic 10% reduction in the amount of certain federal tax incentives as from 2026. In Argentina, as from 23 December 2024, Tax for an Inclusive and Solidarity Argentina (PAIS), which imposed certain foreign currency purchasing operations in order to make payments abroad, has been eliminated. Likewise, General Resolution (AFIP) No. 5,554 repeals, with effect from 1 September 2024, the obligation to withhold VAT and income tax on electronic payments. In Chile, Law 27,713 on Tax Compliance Obligations was published in October 2024, amending, among other instruments, the Tax Code, the Income Tax Law and the Value Added Tax Law. Additionally, in July 2024, Law No. 21,681 was published, which, among other measures, introduced a new Substitute Tax of Final Tax, allowing the distribution of taxable profits at a fixed rate of 12% until 31 January 2025, thereby reducing the fiscal cost of such distributions. In Mexico, the Federal Revenue Law for Fiscal Year 2026 was published in November 2025, limiting the deductibility of contributions paid to the Institute for the Protection of Bank Savings (IPAB) to 25% of their amount and amending the tax treatment of loan loss provisions, bringing them into line with the regime applicable to other entities. In the United States, Law 119-21 ('One, Big, Beautiful Bill Act') was passed in July 2025, introducing significant regulatory changes. Notable among these are the repeal of tax credits linked to electric vehicles as from 1 October 2025 (while preserving those already generated), the elimination of the obligation to capitalise and amortise the costs of in-house software development (which will now be deductible), and the reintroduction of accelerated tax depreciation for investments in certain tangible assets. In Portugal, a gradual reduction of the corporate income tax rate has been approved, falling from 20% in 2025 to 19% in 2026, 18% in 2027 and 17% in 2028 and subsequent years. Including the municipal surtax of up to 1.5% and the state surtax of up to 9%, this results in an aggregate combined rate of 30.50%, 29.50%, 28.50% and 27.50%, respectively. In Poland, one of the most significant changes to the tax framework is the increase in the corporate income tax rate for banks, from 19% to 30% in 2026, followed by a reduction to 26% in 2027 and 23% in 2028 and subsequent years. In Germany, the Tax Investment Programme to Strengthen Germany’s Economic Base was passed in July. It provides for a gradual annual one-percentage-point reduction in the corporate income tax rate from 2028, falling from the current 15% to 10% by 2032. In Germany, the combined corporate income tax and municipal trade tax rate—which also applies to business profits—is currently 32.45% and will decrease to 27.18% by 2032. Annual report 2025738 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### h) Other information In compliance with the disclosure requirement established in the listing rules instrument 2005 published by the UK Financial Conduct Authority, it is hereby stated that shareholders of the Bank resident in the United Kingdom will be entitled to a tax credit for taxes paid abroad in respect of withholdings that the Bank has to pay on the dividends to be paid to such shareholders if the total income of the dividend exceeds the amount of exempt dividends of GBP 500 for the year 2025/26 (GBP 500 for the year 2024/25). The shareholders of the Bank resident in the United Kingdom who hold their ownership interest in the Bank through Santander Nominee Service will be informed directly of the amount thus withheld and of any other data they may require to complete their tax returns in the United Kingdom. The other shareholders of the Bank resident in the United Kingdom should contact their bank or securities broker. Banco Santander, S.A., is part of the Large Business Forum and has adhered since 2010 to the Code of Good Tax Practices in Spain. Also Santander UK is a member of the HMRC’s (His Majesty's Revenue and Customs) Code of Practice on Taxation in the United Kingdom and Santander Portugal has adhered to the Code of Good Tax Practices in Portugal, actively participating in the cooperative compliance programs being developed by these Tax Administrations. 28. #### Non-controlling interests Non-controlling interests include the net amount of the equity of subsidiaries attributable to equity instruments that do not belong, directly or indirectly, to the Bank, including the portion attributed to them of profit for the year. #### a) Breakdown The detail, by Group company, of 'Equity - Non-controlling interests' is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Santander Bank Polska S.A. | 2,670 | 2,320 | 1,934 | | Grupo PSA | 1,815 | 1,725 | 1,590 | | Banco Santander - Chile | 1,422 | 1,364 | 1,379 | | Banco Santander (Brasil) S.A. | 1,397 | 1,257 | 1,493 | | Other companiesA | 875 | 890 | 1,315 | | | 8,179 | 7,556 | 7,711 | | | | | | | Profit/(Loss) for the year attributable to non-controlling interests | 1,399 | 1,170 | 1,107 | | Of which: | | | | | Grupo PSA | 230 | 217 | 285 | | Banco Santander - Chile | 313 | 271 | 235 | | Banco Santander (Brasil) S.A. | 184 | 233 | 182 | | Santander Bank Polska S.A. | 604 | 413 | 347 | | Other companies | 68 | 36 | 58 | | TOTAL | 9,578 | 8,726 | 8,818 | A. It included, as of 31 December 2023, perpetual Santander UK plc equity instruments convertible at the option of Santander UK plc into preferred shares of the entity itself amounting EUR 576 million. During 2024, the last outstanding issuance held by third parties for GBP 500 million (EUR 590 million) was redeemed. Annual report 2025739 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### b) Changes The changes in Non-controlling interests are summarised as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Balance at beginning of year | 8,726 | 8,818 | 8,481 | | Other comprehensive income | 73 | (461) | 297 | | Other | 779 | 369 | 40 | | Profit attributable to non-controlling interests | 1,399 | 1,170 | 1,107 | | Modification of participation ratesA | 339 | 395 | (258) | | Change of perimeter | (5) | (8) | (364) | | Dividends paid to minority shareholders | (896) | (660) | (748) | | Changes in capital and other conceptsB | (58) | (528) | 303 | | Balance at end of year | 9,578 | 8,726 | 8,818 | A. Include the effects of the accelerated placements of 3.5% and 5.2% of the share capital of Santander Bank Polska S.A. in 2025 and 2024, respectively, and the public offer for the acquisition of shares of Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México that occurred in 2023 (see note 3.b). B. Includes the effects of the amortization of AT1 UK by EUR 590 million at closing of fiscal year 2024. The foregoing changes are shown in the consolidated statement of changes in total equity. #### c) Other information The financial information on the subsidiaries with significant non- controlling interests at 31 December 2025 is summarised below: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR millionA | | | | | | | Santander Bank Polska S.A. | Banco Santander (Brasil) S.A. | Banco Santander - Chile | Grupo PSA | | Total assets | 78,186 | 209,453 | 68,205 | 47,826 | | Total liabilities | 70,380 | 193,380 | 62,604 | 43,717 | | Net assets | 7,806 | 16,073 | 5,601 | 4,109 | | Total income | 3,724 | 12,602 | 2,714 | 1,305 | | Total profit | 1,528 | 2,388 | 1,043 | 460 | A. Information prepared using corporate management criteria, which may not coincide with those published individually by each entity. 29. #### Other comprehensive income The balances of 'Other compr ehensive income' include the amounts, net of the related tax effect, of the adjustments to assets and liabilities recognised in equity through the consolidated statement of recognised income and expense. The amounts arising from subsidiaries are presented, on a line by line basis, in the appropriate items according to their nature. Respect to items that may be reclassified to profit or loss, the consolidated statement of recognised income and expense includes changes in other comprehensive income as follows: • Revaluation gains (losses): includes the amount of the income, net of the expenses incurred in the year, recognised directly in equity. The amounts recognised in equity in the year remain under this item, even if in the same year they are transferred to the income statement or to the initial carrying amount of the assets or liabilities or are reclassified to another line item. • Amounts transferred to income statement: includes the amount of the revaluation gains and losses previously recognised in equity, even in the same year, which are recognised in the income statement. • Amounts transferred to initial carrying amount of hedged items: includes the amount of the revaluation gains and losses previously recognised in equity, even in the same year, which are recognised in the initial carrying amount of assets or liabilities as a result of cash flow hedges. • Other reclassifications: includes the amount of the transfers made in the year between the different 'Other comprehensive income' items. Annual report 2025740 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | a) Breakdown of Other comprehensive income - Items that will not be reclassified in results and Items that can be classified in results | | | | | | --- | --- | --- | --- | | | | | | | EUR millionA | | | | | | 2025 | 2024 | 2023 | | Other comprehensive income | (37,974) | (36,595) | (35,020) | | Items that will not be reclassified to profit or loss | (4,121) | (4,757) | (5,212) | | Actuarial gains and losses on defined benefit pension plans | (3,896) | (4,404) | (4,324) | | Non-current assets held for sale | 56 | — | — | | Share in other income and expenses recognised in investments, joint ventures and associates | 1 | (1) | 1 | | Other valuation adjustments | — | — | — | | Changes in the fair value of equity instruments measured at fair value with changes in other comprehensive income | (250) | (432) | (776) | | Inefficiency of fair value hedges of equity instruments measured at fair value with changes in other comprehensive income | — | — | — | | Changes in the fair value of equity instruments measured at fair value with changes in other comprehensive income (hedged item) | 208 | 284 | 264 | | Changes in the fair value of equity instruments measured at fair value with changes in other comprehensive income (hedging instrument) | (208) | (284) | (264) | | Changes in the fair value of financial liabilities measured at fair value through profit or loss attributable to changes in credit risk | (32) | 80 | (113) | | Items that may be reclassified to profit or loss | (33,853) | (31,838) | (29,808) | | Hedges of net investments in foreign operations (Effective portion) | (7,343) | (8,002) | (8,684) | | Exchange differences | (25,475) | (22,375) | (19,510) | | Hedging derivatives. Cash flow hedges (Effective portion) | 333 | (298) | (740) | | Changes in the fair value of debt instruments measured at fair value with changes in other comprehensive income | (372) | (736) | (555) | | Hedging instruments (items not designated) | (11) | — | — | | Non-current assets classified as held for sale | (590) | — | — | | Share in other income and expenses recognised in investments, joint ventures and associates | (395) | (427) | (319) | A. Net amount of taxes and minorities b) Other comprehensive income- Items not reclassified to profit or loss – Actuarial gains or (-) losses on defined benefit pension plans 'Other comprehensive income  —Items not reclassified to profit or loss—  Actuarial gains or (-) losses on defined benefit pension plans' include the actuarial gains and losses and the return on plan assets, less the administrative expenses and taxes inherent to the plan, and any change in the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability (asset), attributed to the group net of taxes. In 2025, the amount of actuarial losses (net of actuarial gains) recognized in the consolidated statement of recognised income was EUR 73 million, which corresponds to: • In first place, due to the addition against equity of 2025 amounting to EUR 220 million - see note 25.b -, with the following breakdown: • Increase of EUR 117 million in the cumulative actuarial losses relating to the Group´s businesses in the UK, mainly due to the evolution of the asset portfolio. These losses have been partially offset by the evolution experienced in the discount rate-increase from 5.54% to 5.58%- in long-term inflation - decrease from 3.11% to 2.90%- and in other demographic hypotheses. • Increase of EUR 116 million in accumulated actuarial losses corresponding to the Group’s business in Brazil, mainly due to the collective experience and the evolution of the asset portfolio. These losses have been partially offset by the evolution experienced by the discount rate -increase from 10.58% to 10.65% in the main pension benefits and 10.50% to 10.52% in medical benefits-. • Decrease of EUR 33 million in the accumulates actuarial losses relating to the Group´s entities in Spain, mainly due to the evolution experienced by the discount rate -increase from 3.00% to 3.75%-. • Increase of EUR 20 million in the accumulated actuarial losses corresponding to the Group's businesses in other geographical areas. • In second place, due to the evolution of exchange rates, a EUR 147 million decrease. Annual report 2025741 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | c) Other comprehensive income - Items that will not be reclassified in results - Changes in the fair value of equity instruments measured at fair value with changes in other comprehensive income Since the entry into force of IFRS 9, no impairment analysis is performed of equity instruments recognised under 'Other comprehensive income'. IFRS 9 eliminates the need to carry out the impairment estimate on this class of equity instruments and the reclassification to profit and loss on the disposal of these assets, being recognised at fair value with changes in equity. The following is a breakdown of the composition of the balance as of 31 December 2025, 2024 and 2023 under 'Other comprehensive income - Items that will not be reclassified to profit or loss - Changes in the fair value of equity instruments measured at fair value with changes in other global result' depending on the geographical origin of the issuer: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR million | | | | | | | 2025 | | | | | | Capital gains by valuation | Capital losses by valuation | Net gains/losses by valuation | Fair Value | | Equity instruments | | | | | | Domestic | | | | | | Spain | 47 | (1326) | (1,279) | 133 | | International | | | | | | Rest of Europe | 75 | (81) | (6) | 186 | | United States | 23 | (1) | 22 | 36 | | Latin America and rest | 1,013 | — | 1,013 | 1,926 | | | 1,158 | (1,408) | (250) | 2,281 | | Of which: | | | | | | Publicly listed | 1,033 | (49) | 985 | 1,993 | | Non publicly listed | 125 | (1,359) | (1,235) | 288 | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR million | | | | | | | 2024 | | | | | | Capital gains by valuation | Capital losses by valuation | Net gains/losses by valuation | Fair Value | | Equity instruments | | | | | | Domestic | | | | | | Spain | 39 | (1,328) | (1,289) | 117 | | International | | | | | | Rest of Europe | 131 | (71) | 60 | 299 | | United States | 22 | — | 22 | 24 | | Latin America and rest | 775 | — | 775 | 1,753 | | | 967 | (1,399) | (432) | 2,193 | | Of which: | | | | | | Publicly listed | 779 | (51) | 728 | 1,780 | | Non publicly listed | 188 | (1,348) | (1,160) | 413 | Annual report 2025742 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR million | | | | | | | 2023 | | | | | | Capital gains by valuation | Capital losses by valuation | Net gains/losses by valuation | Fair Value | | Equity instruments | | | | | | Domestic | | | | | | Spain | 32 | (1,173) | (1,141) | 252 | | International | | | | | | Rest of Europe | 117 | (71) | 46 | 267 | | United States | 16 | — | 16 | 19 | | Latin America and rest | 370 | (67) | 303 | 1,223 | | | 535 | (1,311) | (776) | 1,761 | | Of which: | | | | | | Publicly listed | 316 | (118) | 198 | 1,225 | | Non publicly listed | 219 | (1,193) | (974) | 536 | d) Other comprehensive income - Items that may be reclassified to profit or loss - Hedge of net investments in foreign operations (effective portion) and exchange differences The change in 2025 reflects the depreciation of the US dollar, pound sterling, Argentine peso, Chilean peso and Brazilian real and the positive effect of the appreciation of the Mexican peso, whereas the change in 2024 reflected the positive effect of the appreciation of pound sterling, the US dollar and Polish zloty and the negative effect of the depreciation of the Brazilian real, Argentine peso, Mexican peso and Chilean peso. The change in 2023 reflected  the positive effect of the appreciation of the Brazilian real, pound sterling, Polish zloty and the Mexican peso and the negative effect of the depreciation of the US dollar, Argentine peso and Chilean peso. Of the change in the balance in these years, a loss of EUR 287 million, a loss of EUR 568 million and a profit of EUR 249 million in 2025, 2024 and 2023, respectively relate to the measurement of goodwill. The detail, by country is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Net balance at end of year | (32,818) | (30,377) | (28,194) | | Of which: | | | | | Brazilian real | (19,412) | (19,293) | (16,340) | | Mexican peso | (4,137) | (3,995) | (2,942) | | Pound sterling | (4,125) | (3,444) | (3,964) | | Chilean peso | (2,926) | (2,857) | (2,531) | | Argentine peso | (2,217) | (2,090) | (2,655) | | Polish zloty | (43) | (709) | (786) | | US dollar | 1,047 | 2,923 | 1,819 | | Other | (1,005) | (912) | (795) | Annual report 2025743 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The breakdown of translation differences by currency is as follows: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | EUR million | | | | | | | | | 2025 | | | | Of which: | | | | | Currency | Balance at the beginning of the year | Balance at the end of the year | Movement | From goodwill | From resultsA | From net assets | From transfersB | | Brazilian real | (16,664) | (16,755) | (91) | (13) | (41) | (37) | — | | Pound sterling | (3,300) | (4,126) | (826) | (48) | (18) | (760) | — | | Mexican peso | (1,437) | (1,222) | 215 | 11 | 40 | 164 | — | | Argentine peso | (2,090) | (2,216) | (126) | — | — | (126) | — | | Chilean peso | (2,180) | (2,249) | (69) | (12) | 9 | (66) | — | | US dollar | 4,462 | 2,340 | (2,122) | (225) | (48) | (1,849) | — | | Polish zloty | (202) | 18 | 220 | 1 | — | 4 | 215 | | Other | (964) | (1,265) | (301) | (1) | 6 | (306) | — | | Total Group | (22,375) | (25,475) | (3,100) | (287) | (52) | (2,976) | 215 | A. Profit and loss items are translated into euros at the average exchange rate for the year as described in note 2 a) ii. B. It includes the accumulated exchange differences of Santander Polska transferred to the heading 'Other comprehensive income - Items that may be reclassified to profit or loss - Non-current assets held for sale' (see Note 12). | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | | | | | | 2024 | | | | Of which: | | | | Currency | Balance at the beginning of the year | Balance at the end of the year | Movement | From goodwill | From resultsA | From net assets | | Brazilian real | (13,287) | (16,664) | (3,377) | (631) | (206) | (2,540) | | Pound sterling | (4,064) | (3,300) | 764 | 39 | 22 | 703 | | Mexican peso | (64) | (1,437) | (1,373) | (82) | (136) | (1,155) | | Argentine peso | (2,658) | (2,090) | 568 | — | — | 568 | | Chilean peso | (1,890) | (2,180) | (290) | (34) | (7) | (249) | | US dollar | 3,433 | 4,462 | 1,029 | 116 | 35 | 878 | | Polish zloty | (325) | (202) | 123 | 34 | 5 | 84 | | Other | (655) | (964) | (309) | (10) | (8) | (291) | | Total Group | (19,510) | (22,375) | (2,865) | (568) | (295) | (2,002) | A. Profit and loss items are translated into euros at the average exchange rate for the year as described in note 2 a) ii. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | | | | | | 2023 | | | | Of which: | | | | Currency | Balance at the beginning of the year | Balance at the end of the year | Movement | From goodwill | From resultsA | From net assets | | Brazilian real | (14,199) | (13,287) | 912 | 191 | 11 | 710 | | Pound sterling | (4,446) | (4,064) | 382 | 20 | 4 | 358 | | Mexican peso | (1,132) | (64) | 1,068 | 62 | 41 | 965 | | Argentine peso | (1,754) | (2,658) | (904) | (4) | — | (900) | | Chilean peso | (1,605) | (1,890) | (285) | (32) | (34) | (219) | | US dollar | 4,062 | 3,433 | (629) | (64) | (16) | (549) | | Polish zloty | (776) | (325) | 451 | 87 | 32 | 332 | | Other | (570) | (655) | (85) | (11) | (1) | (73) | | Total Group | (20,420) | (19,510) | 910 | 249 | 37 | 624 | A. Profit and loss items are translated into euros at the average exchange rate for the year as described in note 2 a) ii. Annual report 2025744 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | e) Other comprehensive income -Items that may be reclassified to profit or loss - Hedging derivatives – Cash flow hedges (Effective portion) Other comprehensive income – Items that may be reclassified to profit or loss - Cash flow hedges includes the gains or losses attributable to hedging instruments that qualify as effective hedges. These amounts will remain under this heading until they are recognised in the consolidated income statement in the periods in which the hedged items affect it. f) Other comprehensive income - Items that may be reclassified to profit or loss – Changes in the fair value of debt instruments measured at fair value with changes in other comprehensive income Includes the net amount of unrealised changes in the fair value of assets classified as Changes in the fair value of debt instruments measured at fair value with changes in other comprehensive income (see note 7). The breakdown, by type of instrument and geographical origin of the issuer, of 'Other comprehensive income – Items that may be reclassified to profit or loss - Changes in the fair value of debt instruments measured at fair value with changes in other comprehensive income' at 31 December 2025, 2024 and 2023 is as follows: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR million | | | | | | | 31 December 2025 | | | | | | Revaluation gains | Revaluation losses | Net revaluation gains/ (losses) | Fair value | | Debt instruments | | | | | | Issued by Public-sector | | | | | | Spain | 118 | — | 118 | 10,142 | | Rest of Europe | 209 | (36) | 173 | 8,856 | | America and rest of the world | 109 | (528) | (419) | 31,685 | | Issued by Private-sector | | | | | | Spain | 29 | (53) | (24) | 9,745 | | Rest of Europe | 28 | (15) | 13 | 6,445 | | America and rest of the world | 40 | (273) | (233) | 5,458 | | | 533 | (905) | (372) | 72,331 | Annual report 2025745 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR million | | | | | | | 31 December 2024 | | | | | | Revaluation gains | Revaluation losses | Net revaluation gains/ (losses) | Fair value | | Debt instruments | | | | | | Issued by Public-sector | | | | | | Spain | 103 | — | 103 | 13,764 | | Rest of Europe | 268 | (70) | 198 | 15,413 | | America and rest of the world | 76 | (944) | (868) | 38,784 | | Issued by Private-sector | | | | | | Spain | 96 | (23) | 73 | 6,019 | | Rest of Europe | 25 | (18) | 7 | 7,478 | | America and rest of the world | 16 | (265) | (249) | 6,247 | | | 584 | (1,320) | (736) | 87,705 | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR million | | | | | | | 31 December 2023 | | | | | | Revaluation gains | Revaluation losses | Net revaluation gains/ (losses) | Fair value | | Debt instruments | | | | | | Issued by Public-sector | | | | | | Spain | 17 | — | 17 | 9,867 | | Rest of Europe | 333 | (96) | 237 | 18,258 | | America and rest of the world | 194 | (820) | (626) | 38,169 | | Issued by Private-sector | | | | | | Spain | 98 | (9) | 89 | 5,129 | | Rest of Europe | 19 | (30) | (11) | 5,018 | | America and rest of the world | 6 | (267) | (261) | 5,106 | | | 667 | (1,222) | (555) | 81,547 | The Group estimates the expected losses on debt instruments measured at fair value with changes in other comprehensive income. These losses are recorded with a charge to the consolidated income statement for the period. At the end of the year 2025, the Group recorded a provision of EUR 29 million under the heading 'Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss'. In 2024, the Group did not record any provision in this regard and at the end of the year 2023, the Group recorded EUR 24 million. g) Other comprehensive income - Items that may be reclassified to profit or loss and Items not reclassified to profit or loss - Other recognised income and expense of investments in subsidiaries, joint ventures and associates At 31 December 2025, the heading includes a negative amount of EUR 394 million (EUR 428 million and EUR 318 million in 2024 and 2023, respectively). Of the variation in the balance of said years, a gain of EUR 17 million, EUR 45 million EUR 44 million and has been transferred to results in the years 2025, 2024 and 2023, respectively. 30. #### Shareholders' equity The changes in Shareholders' equity are presented in the consolidated statement of changes in total equity. Significant information on certain items of Shareholders' equity and the changes during the year are set forth below. 31. #### Issued capital #### a) Changes At 31 December 2022, Banco Santander's share capital consisted of EUR 8,397 million, represented by 16,794,401,584 shares of EUR 0.50 of nominal value each and all of them of a unique class and series. On 21 March 2023, there was a capital reduction amounting EUR 170,203,286 through the redemption of 340,406,572 shares, corresponding to the share buyback programme carried out in 2022 and ended in January 2023. Likewise, on 30 June 2023, there was a capital reduction of EUR 134,924,476.50 through the redemption of 269,848,953 shares, corresponding to the share buyback programme during the first half of 2023. Annual report 2025746 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Therefore, Banco Santander's share capital at 31 December 2023 consisted of EUR 8,092 million, represented by 16,184,146,059 shares of EUR 0.50 of nominal value each and all of them of a unique class and series ; including 286,842,316 shares corresponding to the first buyback programme of 2023 (see note 1.g.). On 5 February 2024, a capital reduction of EUR 179,283,743.50 took place through the redemption of 358,567,487 shares, corresponding to the share buyback programme carried out in 2023 and ended in January 2024. On 1 July 2024, a capital reduction of EUR 165,652,500 took place through the redemption of 331,305,000 shares, corresponding to he share buyback programme carried out between February and June 2024. On 20 December 2024, a capital reduction of EUR 170,890,625 took place through the redemption of 341,781,250 shares, corresponding to he share buyback programme carried out during the second semester of 2024. Therefore, Banco Santander's share capital at 31 December 2024 consisted of EUR 7,576 million, represented by 15,152,492,322 shares of EUR 0.50 of nominal value each and all of them of a unique class and series. On 3 June 2025, there was a capital reduction amounting to EUR 133,583,475 through the redemption of 267,166,950 shares, corresponding to the share buyback programme carried out between February and June 2025. On 23 December 2025, a capital reduction of EUR 98,002,935 took place through the redemption of 196,005,870 shares, corresponding to the share buyback programme carried out during the second semester of 2025. Aforementioned operations have not entailed the return of contributions to the shareholders as Banco Santander was the owner of the redeemed shares. Therefore, Banco Santander's share capital at 31 December 2025 consisted of EUR 7,345 million, represented by 14,689,319,502 shares of EUR 0.50 of nominal value each and all of them of a unique class and series. Banco Santander’s shares are listed on the Spanish Stock Market Interconnection System and on the New York, London, Mexico and Warsaw Stock Exchanges, and all of them have the same features and rights. Santander shares are listed on the London Stock Exchange under Crest Depository Interest (CDI), each CDI representing one Bank’s share. They are also listed on the New York Stock Exchange under American Depositary Shares (ADS), each ADS representing one share. Additionally, Banco Santander's shares were listed on the traditional listing of the Mexican Stock Exchange (BMV) and since 29 December 2023, they were listed only in the International Quotation System of said stock exchange. As of 31 December 2025, no Banco Santander shareholder individually held more than 3% of its total share capital (which is the threshold generally provided for in Spanish regulations for mandatory notification of a significant participation in a listed company). Even though at 31 December 2025, certain custodians appeared in our shareholder registry as holding more than 3% of our share capital, we understand that those shares were held in custody on behalf of other investors, none of whom exceeded that threshold individually. These custodians were State Street Bank (13.90%),  Chase Nominees Limited (7.50%), The Bank of New York Mellon Corporation (7.18%),Citibank (6.40%), BNP Paribas (3.74%), Caceis Bank (3.57%) y The Northern Trust (3.06%). At 31 December 2025, neither Banco Santander's shareholder registry nor the CNMV's registry showed any shareholder residing in a non-cooperative jurisdiction with a shareholding equal to, or greater than, 1% of our share capital (which is the other threshold applicable under Spanish regulations). #### b) Other considerations Under Spanish law, only shareholders at the general meeting have the authority to increase share capital. However, they may delegate the authority to approve or execute capital increases to the board of directors. Banco Santander´s Bylaws are fully aligned with Spanish law and do not establish any different conditions for share capital increases. At 31 December 2025 the shares of the following companies were listed on official stock markets: Banco Santander - Chile; Banco Santander (Brasil) S.A. and Santander Bank Polska S.A. At 31 December 2025 the number of Banco Santander shares owned by third parties and managed by Group management companies (mainly portfolio, collective investment undertaking and pension fund managers) or jointly managed was 33 million shares, which represented 0.22% of Banco Santander’s share capital (40 and 36 million shares, representing 0.26% and 0.22% of the share capital in 2024 and 2023, respectively). In addition, the number of Banco Santander shares owned by third parties and received as security was 28 million shares (equal to 0.19% of the Bank’s share capital). At 31 December 2025 the capital increases in progress at Group companies and the additional capital authorised by their shareholders at the respective general meetings were not material at Group level (see appendix V) Annual report 2025747 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 32. #### Share premium Share premium includes the amount paid up by the Bank’s shareholders in capital issues in excess of the par value. The Corporate Enterprises Act expressly permits the use of the share premium account balance to increase capital at the entities at which it is recognised and does not establish any specific restrictions as to its use. The change in the balance of share premium corresponds to the capital reductions detailed in note 31.a). The decreased produced in 2023 by an amount of EUR 1,595 million was the consequence of the difference between the purchase value of the redeemed shares (EUR 1,900 million) and the par value of said shares (EUR 305 million) ( see note 4.a and consolidated statements of changes in total equity) as a consequence of the capital decreases described in note 31.a. The decrease produced in 2024 by an amount of EUR 3,778 million was the consequence of the difference between the purchase value of the redeemed shares (EUR 4,294 million ) and the par value of said shares (EUR 516 million) (see note 4.a and consolidated statements of changes in total equity) as a consequence of the capital decreases described in note 31.a. The decrease produced in 2025 by an amount of EUR 3,055 million has been the consequence of the difference between the purchase value of the redeemed shares (EUR 3,287 million) and the par value of said shares (EUR 231 million) (see note 4.a and consolidated statements of changes in total equity) as a consequence of the capital decreases described in note 31.a. Likewise, in accordance with the applicable legislation, a reserve has been provided in 2024 for amortized capital charged to the issue premium for an amount equal to the nominal value of said amortized shares ascending to EUR 231 million (EUR 516 million and EUR 305 million euros in 2024 and 2023 respectively). 33. #### Accumulated retained earnings #### a) Definitions The balance of 'Equity - Accumulated gains and Other reserves' includes the net amount of the accumulated results (profits or losses) recognised in previous years through the consolidated income statement which in the profit distribution were allocated in equity, the expenses of own equity instrument issues, the differences between the amount for which the treasury shares are sold and their acquisition price, as well as the net amount of the results accumulated in previous years, generated by the result of non-current assets held for sale, recognised through the consolidated income statement. #### b) Breakdown The detail of Accumulated retained earnings and Reserves of entities accounted for using the equity method is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Restricted reserves | 3,328 | 3,084 | 2,899 | | Legal reserveA | 1,469 | 1,515 | 1,618 | | Own shares | 480 | 421 | 649 | | Revaluation reserve Royal Decree-Law 7/1996 | 43 | 43 | 43 | | Reserve for retired capital | 1,336 | 1,105 | 589 | | Unrestricted reserves | 31,519 | 24,186 | 16,033 | | Voluntary reservesB | 26,357 | 20,362 | 14,284 | | Consolidation reserves attributable to the Bank | 5,162 | 3,824 | 1,749 | | Reserves of subsidiaries | 47,937 | 47,249 | 47,669 | | Reserves of entities accounted for using the equity method | 1,643 | 1,831 | 1,762 | | | 84,427 | 76,350 | 68,363 | A. The board of directors has proposed to the general shareholders' meeting the reclassification of the excess that the amount of the balance of the legal reserve account shows over the figure that is equivalent to 20% of the resulting share capital after the executed capital reductions, to be included in the voluntary reserves account. B. In accordance with the commercial regulations in force in Spain. i. Legal reserve Under the Consolidated Spanish Corporate Enterprises Act, 10% of net profit for each year must be transferred to the legal reserve. These transfers must be made until the balance of this reserve reaches 20% of the share capital. The legal reserve can be used to increase capital provided that the remaining reserve balance does not fall below 10% of the increased share capital amount. Consequently, once again, after the capital reductions described in note 31 had been carried out, the balance of the legal reserve met the percentage of 20% of the share capital, and at 31 December 2025 the Legal reserve was at the stipulated level. Annual report 2025748 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | ii. Reserve for treasury shares According to the Corporate Enterprises Act, an unavailable reserve equivalent to the amount for which Banco Santander's shares owned by subsidiaries are recorded. This reservation shall be freely available when the circumstances which have obliged its constitution disappear. In addition, this reserve covers the outstanding balance of loans granted by the Group with Banco Santander's share guarantee and the amount equivalent to the credits granted by the Group companies to third parties for the acquisition of own shares. iii. Revaluation reserve Royal Decree Law 7/1996, of 7 June The balance of Revaluation reserve Royal Decree-Law 7/1996 can be used, free of tax, to increase share capital. From 1 January 2007, the balance of this account can be taken to unrestricted reserves, provided that the monetary surplus has been realised. The surplus will be deemed to have been realised in respect of the portion on which depreciation has been taken for accounting purposes or when the revalued assets have been transferred or derecognised. If the balance of this reserve were used in a manner other than that provided for in Royal Decree law 7/1996, of 7 June, it would be subject to taxation. iv. Reserves of subsidiaries The detail, by company, of Reserves of subsidiaries, based on the companies’ contribution to the Group (considering the effect of consolidation adjustments) is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Banco Santander (Brasil) S.A. (Consolidated Group) | 16,085 | 15,107 | 14,512 | | Santander UK Group | 7,973 | 8,576 | 8,700 | | Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México | 4,977 | 5,248 | 5,684 | | Santander Consumer Finance Group | 4,804 | 4,729 | 4,344 | | Banco Santander - Chile | 4,560 | 4,250 | 4,112 | | Banco Santander Argentina S.A. | 3,217 | 2,892 | 2,813 | | Banco Santander Totta, S.A. (Consolidated Group) | 2,726 | 2,766 | 2,626 | | Santander Bank Polska S.A. | 2,875 | 2,890 | 2,535 | | Grupo Santander Holdings USA | 63 | 187 | 1,893 | | Santander Investment, S.A. | 1,424 | 1,217 | 1,215 | | Santander Seguros y Reaseguros, Compañía Aseguradora, S.A. | 845 | 836 | 1,044 | | Banco Santander International SA (former Banco Santander (Suisse) S.A) | 450 | 397 | 346 | | Other companies and consolidation adjustments | (2,062) | (1,846) | (2,155) | | | 47,937 | 47,249 | 47,669 | | Of which, restricted | 4,722 | 4,175 | 3,870 | 34. #### Other equity instruments and own shares a) Equity instruments issued not capital and #### other equity instruments Other equity instruments includes the equity component of compound financial instruments, the increase in equity due to personnel remuneration, and other items not recognised in other 'Shareholders’ equity' items. On 8 September 2017, Banco Santander, S.A. issued contingent redeemable perpetual bonds (the fidelity bonds) amounting to EUR 981 million nominal value EUR - 686 million fair value -. On 15 December 2024, Banco Santander, S.A., proceeded to redeem in advance voluntarily all of said bonds in circulation. Additionally, at 31 December 2025 the Group had other equity instruments amounting to EUR 273 million. #### b) Own shares 'Shareholders’ equity - Own shares' includes the amount of own equity instruments held by all the Group entities. Transactions involving own equity instruments, including their issuance and cancellation, are recognised directly in equity, and no profit or loss may be recognised on these transactions. The costs of any transaction involving own equity instruments are deducted directly from equity, net of any related tax effect. At 31 December 2023, the number of treasury shares held by the Group was 297,815,673 (1.84% of the issued share capital). During 2024, 930,610,636 shares of the Bank were acquired at an average price of EUR 4.34 per share, of which 403,030,171 relate to the Share Buyback Programme carried out during the first half of 2025, and 341,781,250 relate to the Share Buyback Programme started in September. Likewise, 1,031,653,737 shares were amortised (note 31) and 181,243,113 shares at an average price of EUR 4.22 per share were transferred, of which 22,167,105 shares correspond to the donation made by Banco Santander to Fundación Banco Santander with extraordinary character. At 31 December 2024, the number of treasury shares held by the Group was 15,529,459 ( 0.102% of the issued share capital). During 2025, 584,363,745 shares of the Bank have been acquired at an average price of EUR 6.98 per share, of which 267,166,950 relate to the Share Buyback Programme carried out during the first half of 2025, and 196,005,870 relate to the new Share Buyback Programme started in August. Likewise, 463,172,820 shares have been amortised (note 31) and 125,643,093 shares at an average price of EUR 6.48 per share have been transferred. At 31 December 2025, the Group holds 11,077,291 shares of the Bank's issued share capital (0.075% ). The effect on equity, net of tax, arising from the purchase and sale of Bank shares is of EUR 34 million profit in 2025 (EUR 8 million and EUR 13 million profit in 2024 and 2023, respectively). Annual report 2025749 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 35. #### Memorandum items Memorandum items relates to balances representing rights, obligations and other legal situations that in the future may have an impact on net assets, as well as any other balances needed to reflect all transactions performed by the consolidated entities although they may not impinge on their net assets. #### a) Guarantees and contingent commitments #### granted Contingent liabilities includes all transactions under which an entity guarantees the obligations of a third party and which result from financial guarantees granted by the entity or from other types of contracts. The detail is as follows: | | | | | | --- | --- | --- | --- | | | | | | | | | | | | | 2025 | 2024 | 2023 | | Loans commitment granted | 321,234 | 302,861 | 279,589 | | Of which impaired | 345 | 511 | 406 | | Financial guarantees granted | 17,449 | 16,901 | 15,435 | | Of which impaired | 332 | 217 | 578 | | Financial guarantees | 17,437 | 16,887 | 15,400 | | Credit derivatives sold | 12 | 14 | 35 | | Other commitments granted | 148,118 | 134,493 | 113,273 | | Of which impaired | 668 | 793 | 542 | | Technical guarantees | 62,161 | 61,551 | 57,363 | | Other | 85,957 | 72,942 | 55,910 | The breakdown as at 31 December 2025 of the exposures and the provision fund out of balance sheet by impairment stage is EUR 464,215 million and EUR 338 million (EUR 435,147 million and EUR 305 million in 2024 and EUR 398,243 million and EUR 302 million in 2023) in stage 1, EUR 21,241 million and EUR 206 million (EUR 17,587 million and EUR 192 million in 2024 and EUR 8,528 million and EUR 174 million in 2023) in stage 2 and EUR 1,345 million and EUR 169 million (EUR 1,521 million and EUR 213 million in 2024 and EUR 1,526 million and EUR 226 million in 2023) in stage 3, respectively. Income from guarantee instruments is recognised under 'Fee and commission income' in the consolidated income statements and is calculated by applying the rate established in the related contract to the nominal amount of the guarantee. i. Loan commitments granted Loan commitments granted: firm commitments of grating of credit under predefined terms and conditions, except for those that comply with the definition of derivatives as these can be settled in cash or through the delivery of issuance of another financial instrument. They include stand-by credit lines and long-term deposits. ii. Financial guarantees granted Financial guarantees includes, inter alia, financial guarantee contracts such as financial bank guarantees, credit derivatives sold, and risks arising from derivatives arranged for the account of third parties. iii. Other commitments granted Other contingent liabilities include all commitments that could give rise to the recognition of financial assets not included in the above items, such as technical guarantees and guarantees for the import and export of goods and services. #### b) Memorandum items i. Off-balance-sheet funds under management The detail of off-balance-sheet funds managed by the Group and by joint ventures is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Investment funds | 197,346 | 178,840 | 165,174 | | Pension funds | 16,112 | 15,646 | 14,831 | | Assets under management | 43,974 | 35,999 | 29,732 | | | 257,432 | 230,485 | 209,737 | ii. Non-managed marketed funds Additionally, at 31 December 2025 there are non-managed marketed funds totalling EUR 73,173 million (EUR 62,002 million and EUR 50,036 million at 31 December 2024 and 2023, respectively). #### c) Third-party securities held in custody At 31 December 2025 the Group held in custody debt securities and equity instruments totalling EUR 306,723 million (EUR 292,216 million and EUR 268,338 million at 31 December 2024 and 2023 , respectively) entrusted to it by third parties. 36. #### Hedging derivatives Grupo Santander, within its financial risk management strategy, and in order to reduce asymmetries in the accounting treatment of its operations, enters into hedging derivatives on interest, exchange rate, credit risk or variation of stock prices, depending on the nature of the risk covered. Based on its objective, Grupo Santander classifies its hedges in the following categories: • Cash flow hedges: cover the exposure to the variation of the cash flows associated with an asset, liability or a highly probable forecast transaction. This cover the variable-rate issues in foreign currencies, fixed-rate issues in non-local currency, variable-rate interbank financing and variable-rate assets (bonds, commercial loans, mortgages, etc.). • Fair value hedges: cover the exposure to the variation in the fair value of assets or liabilities, attributable to an identified and hedged risk. This covers the interest risk of assets or liabilities (bonds, loans, bills, issues, deposits, etc.) with coupons or fixed interest rates, interests in entities, issues in foreign currencies and deposits or other fixed rate liabilities. • Hedging of net investments abroad: cover the exchange rate risk of the investments in subsidiaries domiciled in a country with a different currency from the functional one of the Group. Annual report 2025750 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The following tables contains the detail of the hedging derivatives according to the type of hedging, the hedge risk and the main products used as of 31 December 2025, 2024 and 2023: | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | EUR million | | | | | | | | 2025 | | | | | | | | Carrying amount | | | | | | Nominal value | Assets | Liabilities | Changes in fair value used for calculating hedge ineffectiveness | Balance sheet line items | | Fair value hedges | 338,057 | 2,387 | 2,588 | (454) | | | Interest rate risk | 305,348 | 1,501 | 1,532 | (433) | Hedging derivatives | | Interest rate swap | 285,983 | 1,326 | 1,485 | (188) | | | Future interest rate | 19,365 | 175 | 47 | (247) | | | Cap&Floor | — | — | — | 2 | | | Exchange rate risk | 2,656 | 6 | 20 | 46 | Hedging derivatives | | Fx forward | 2,414 | 6 | 20 | 5 | | | Fx Swap | — | — | — | 46 | | | Future interest rate | 242 | — | — | (5) | | | Interest rate and exchange rate risk | 27,433 | 735 | 1,035 | (76) | Hedging derivatives | | Interest rate swap | 5,452 | 38 | 80 | (8) | | | Currency swap | 21,981 | 697 | 955 | (68) | | | Base risk | 500 | — | 1 | — | Hedging derivatives | | Interest rate swap | 500 | — | 1 | — | | | Inflation risk | 2,120 | 145 | — | 9 | Hedging derivatives | | Inflation swap | 2,120 | 145 | — | 9 | | | | | | | | | | Cash flow hedges | 148,269 | 1,954 | 1,231 | 1,067 | | | Interest rate risk | 99,969 | 960 | 41 | 1,171 | Hedging derivatives | | Future interest rate | 12,357 | 22 | 7 | (293) | | | Interest rate swap | 87,412 | 937 | 34 | 1,464 | | | Cap&Floor | 200 | 1 | — | — | | | Exchange rate risk | 24,791 | 605 | 473 | (233) | Hedging derivatives | | FX forward | 3,445 | 62 | 20 | (18) | | | FX swap | 1,606 | 38 | 43 | (3) | | | Currency swap | 19,740 | 505 | 410 | (212) | | | Interest rate and exchange rate risk | 23,445 | 298 | 718 | (3) | Hedging derivatives | | Interest rate swap | 3,253 | 17 | 85 | 51 | | | Currency swap | 20,192 | 281 | 633 | (54) | | | Inflation risk | — | — | — | 131 | Hedging derivatives | | Inflation swap | — | — | — | 131 | | | Equity risk | 64 | 91 | | 1 | Hedging derivatives | | Equity Option | 64 | 91 | | 1 | | | | | | | | | | Hedges of net investments in foreign operations | 19,666 | 86 | 475 | 136 | | | Exchange rate risk | 19,666 | 86 | 475 | 136 | Hedging derivatives | | FX forward | 19,614 | 86 | 474 | 134 | | | FX swap | 52 | | 1 | 2 | | | | | | | | | | | 505,992 | 4,427 | 4,294 | 749 | | Annual report 2025751 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | EUR million | | | | | | | | 2024 | | | | | | | | Carrying amount | | | | | | Nominal value | Assets | Liabilities | Changes in fair value used for calculating hedge ineffectiveness | Balance sheet line items | | Fair value hedges | 308,897 | 2,584 | 2,964 | 483 | | | Interest rate risk | 290,152 | 2,070 | 2,319 | 373 | Hedging derivatives | | Of which: | | | | | | | Interest rate swap | 276,715 | 1,578 | 2,082 | 156 | | | Exchange rate risk | 4,411 | 13 | 59 | 101 | Hedging derivatives | | Of which: | | | | | | | Fx forward | 2,240 | 8 | 39 | (2) | | | Future interest rate | 2,059 | — | — | 91 | | | Interest rate and exchange rate risk | 13,739 | 501 | 586 | 8 | Hedging derivatives | | Interest rate swap | 2,720 | 15 | 65 | 46 | | | Currency swap | 11,019 | 486 | 520 | (38) | | | Base risk | 500 | — | — | — | Hedging derivatives | | Interest rate swap | 500 | — | — | — | | | Equity risk | 95 | — | — | 1 | Hedging derivatives | | Equity swap | 95 | — | — | 1 | | | | | | | | | | Cash flow hedges | 179,271 | 2,415 | 1,519 | 558 | | | Interest rate risk | 134,503 | 1,060 | 1,089 | 144 | | | Of which: | | | | | | | Future interest rate | 6,621 | — | — | 225 | | | Interest rate swap | 106,663 | 788 | 478 | (130) | | | Exchange rate risk | 30,653 | 738 | 258 | 459 | Hedging derivatives | | Of which: | | | | | | | FX forward | 9,286 | 362 | 51 | 408 | | | Currency swap | 19,957 | 323 | 189 | 114 | | | Interest rate and exchange rate risk | 11,724 | 539 | 172 | 26 | Hedging derivatives | | Interest rate swap | 3,092 | (6) | 46 | 75 | | | Currency swap | 8,632 | 545 | 126 | (49) | | | Inflation risk | 2,316 | 58 | — | (69) | Hedging derivatives | | Of which: | | | | | | | Inflation swap | 2,163 | 57 | — | 82 | | | Equity risk | 75 | 20 | — | (2) | Hedging derivatives | | Equity swap | 75 | 20 | — | (2) | | | | | | | | | | Hedges of net investments in foreign operations | 23,559 | 673 | 269 | 420 | | | Exchange rate risk | 23,559 | 673 | 269 | 420 | Hedging derivatives | | FX forward | 23,559 | 673 | 269 | 420 | | | | | | | | | | | 511,727 | 5,672 | 4,752 | 1,461 | | Annual report 2025752 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | EUR million | | | | | | | | 2023 | | | | | | | | Carrying amount | | | | | | Nominal value | Assets | Liabilities | Changes in fair value used for calculating hedge ineffectiveness | Balance sheet line items | | Fair value hedges | 241,792 | 2,661 | 4,231 | (1,869) | | | Interest rate risk | 225,377 | 2,280 | 3,644 | (1,684) | Hedging derivatives | | Of which: | | | | | | | Interest rate swap | 215,382 | 2,015 | 3,462 | (1,871) | | | Exchange rate risk | 4,331 | 15 | 24 | (98) | Hedging derivatives | | FX forward | 1,913 | 15 | 24 | (11) | | | Future interest rate | 2,418 | — | — | (87) | | | Interest rate and exchange rate risk | 12,084 | 366 | 563 | (87) | Hedging derivatives | | Interest rate swap | 2,311 | 9 | 179 | 20 | | | Currency swap | 9,773 | 357 | 384 | (107) | | | | | | | | | | Cash flow hedges | 157,796 | 2,575 | 2,889 | 1,828 | | | Interest rate risk | 97,780 | 913 | 1,246 | 2,181 | Hedging derivatives | | Of which: | | | | | | | Future interest rate | 3,020 | — | — | 6 | | | Interest rate swap | 91,569 | 872 | 1,214 | 2,188 | | | Exchange rate risk | 34,823 | 1,001 | 663 | (498) | Hedging derivatives | | Of which: | | | | | | | FX forward | 11,160 | 502 | 241 | 43 | | | Currency swap | 20,043 | 446 | 397 | (537) | | | Interest rate and exchange rate risk | 12,217 | 484 | 74 | (98) | Hedging derivatives | | Interest rate swap | 2,847 | — | (45) | 227 | | | Currency swap | 9,370 | 484 | 119 | (325) | | | Inflation risk | 12,908 | 155 | 906 | 234 | Hedging derivatives | | Of which: | | | | | | | Currency swap | 12,495 | 153 | 906 | 240 | | | Equity risk | 68 | 22 | — | 9 | Hedging derivatives | | Option | 68 | 22 | — | 9 | | | | | | | | | | Hedges of net investments in foreign operations | 18,706 | 61 | 536 | (1,888) | | | Exchange rate risk | 18,706 | 61 | 536 | (1,888) | Hedging derivatives | | FX forward | 18,706 | 61 | 536 | (1,888) | | | | | | | | | | | 418,294 | 5,297 | 7,656 | (1,929) | | Annual report 2025753 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Considering the main entities or groups within the Group by the weight of their hedging, the main types of hedging that are being carried out in Santander UK Group Holdings plc group and Banco Santander, S.A. Santander UK Group Holdings plc group enters into fair value and cash flow hedging derivatives depending on the exposure of the underlying. Only designated risks are hedged and therefore other risks, such as credit risk, are managed but not hedged. When contracting derivatives, Santander UK applies the same credit risk management procedures that it uses for ordinary lending activity. Within fair value hedges, Santander UK Group Holdings plc group has portfolios of assets and liabilities at fixed rate that are exposed to changes in fair value due to changes in market interest rates. These positions are managed by contracting mainly interest rate swaps. Effectiveness is assessed by comparing the changes in the fair value of these portfolios generated by the hedged risk with the changes in the fair value of the derivatives contracted. Santander UK Group Holdings plc group also has access to international markets to obtain financing by issuing fixed-rate debt or investing in fixed rate debt of other issuers, in its functional currency and other currencies. As such, they are exposed to changes in interest rates and exchange rates, mainly in EUR and USD. This risk is mitigated with cross currency swaps e interest rate swaps in which they pay a fixed rate and receive a variable rate. Effectiveness is evaluated using linear regression techniques to compare changes in the fair value of the debt at interest and exchange rates with changes in the fair value of interest rate swaps or cross currency swaps. Within the cash flow hedges, Santander UK Group Holdings plc group has portfolios of assets and liabilities at variable rates, normally at SONIA or BoE base rate. To mitigate this market rate variability risk, it contracts interest rate swaps. As Santander UK Group Holdings plc group obtains financing in the international markets, it assumes a significant exposure to currency risk mainly USD and EUR. In addition, it also holds debt securities for liquidity purposes which assume exposure mainly in JPY, CAD and CHF.  To manage this exchange rate risk, Spot, Forward y Cross Currency Swap are contracted to match the cash flow profile and the maturity of the estimated interest and principal repayments of the hedged item. Effectiveness is assessed by comparing changes in the fair value of the derivatives with changes in the fair value of the hedged item attributable to the hedged risk by applying a hypothetical derivative method using linear regression techniques. It also has inflation risk hedges, which arise from UK bonds linked to UK inflation and are hedged using inflation swaps. Effectiveness is assessed by comparing changes in the fair value of the inflation swap with the changes in the fair value of the hedged item attributable to the hedged risk, applying the hypothetical derivative method using linear regression techniques. In addition, within the hedges that cover equity risk, Santander UK Group Holdings plc group offers employees the opportunity to purchase shares of the Bank at a discount under the Sharesave Scheme, exposing the Bank to share price risk. As such, options are purchased allowing them to purchase shares at a pre-set price. Banco Santander, S.A. covers the risks of its balance sheet in a variety of ways. On the one hand, documented as fair value hedges, it covers the interest rate and foreign exchange risk of fixed-income portfolios at a fixed rate (REPOs are included in this category). Resulting, in an exposure to changes in their fair value due to variations in market conditions based on the various risks hedged, which has an impact on Banco Santander's income statement. To mitigate these risks, Banco Santander contracts derivatives, mainly Interest Rate Swaps, Cross Currency Swaps, Cap&floors and Forex Forward. On the other hand, the interest and exchange rate risk of loans granted to corporate clients at a fixed rate or variable rate is covered. These hedges, are carried out through interest rate swaps, cross currency swaps and exchange rate derivatives (forex swaps and forex forward). In addition, Banco Santander, S.A. manages the interest and exchange risk of debt issues in its various categories (issuing covered bonds, perpetual, subordinated and senior bond) and in different currencies, denominated at fixed rates, and therefore subject to changes in their fair value. These issues are covered through interest rate swaps and cross currency swaps. The methodology used by Banco Santander, S.A. to measure the effectiveness of fair value hedges is based on comparing the market values of the hedged items (based on the objective risk of the hedge) and of the hedging instruments in order to analyse whether the changes in the market value of the hedged items are offset by the market value of the hedging instruments, thereby mitigating the hedged risk and minimizing volatility in the income statement. Prospectively, the same analysis is performed, measuring the theoretical market values in the event of parallel variations in the market curves of a positive basis point. There is a macro hedge of structured loans in which the interest rate risk of fixed-rate loans (mortgage, personal or with other guarantees) granted to legal entities in commercial or corporate banking and wealth clients in the medium-long term is hedged. This hedge is instrumented as a macro hedge of fair value, the main hedging instruments being Interest Rate Swap and Cap&floors. In case of total or partial cancellation or early repayment, the customer is obliged to pay/receive the cost/income of the cancellation of the interest rate risk hedge managed by the Bank. Regarding cash flow hedges, the objective is to hedge the cash flow exposure to changes in interest rates and exchange rates. Annual report 2025754 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | For retrospective purposes, the hypothetical derivative methodology is used to measure effectiveness. By means of this methodology, the hedged risk is modelled as a derivative instrument -not real-, created exclusively for the purpose of measuring the effectiveness of the hedge, and which must comply with the fact that its main characteristics coincide with the critical terms of the hedged item throughout the period for which the hedging relationship is designated. This hypothetical derivative does not incorporate characteristics that are exclusive to the hedging instrument. Additionally, it is worth mentioning that any risk component not associated with the hedged objective risk and effectively documented at the beginning of the hedge is excluded for the purpose of calculating the effectiveness. The market value of the hypothetical derivative that replicates the hedged item is compared with the market value of the hedging instrument, verifying that the hedged risk is effectively mitigated and that the impact on the income statement due to potential ineffectiveness is residual. Prospectively, the variations in the market values of the hedging instrument and the hedged item (represented by the hypothetical derivative) are measured in the event of parallel shifts of a positive basis point in the affected market curves. There is another macro-hedge, this time of cash flows, the purpose of which is to actively manage the risk-free interest rate risk (excluding credit risk) of a portion of the floating rate assets of Banco Santander, S.A., through the arrangement of interest rate derivatives whereby the bank exchanges floating rate interest flows for others at a fixed rate agreed at the time the transactions are arranged. The items affected by the Macro-hedging have been designated as those in which their cash flows are exposed to interest rate risk, specifically the floating rate mortgages of the Banco Santander, S.A. network referenced to Euribor 12 Months or Euribor Mortgage, with annual renewal of rates, classified as sound risk and which do not have a contractual floor (or, if not, this floor is not activated). The hedged position affecting the Macro Cash Flow Hedge at the present time is near to EUR 5,000 million. Regarding net foreign investments hedges, basically, they are allocated in Banco Santander, S.A. and Santander Consumer Finance Group. Grupo Santander assumes as a priority risk management objective to minimize -to the limit determined by the Group's Financial Management- the impact on the calculation of the capital ratio of its permanent investments included within the Group's consolidation perimeter, and whose shares or equity interests are legally denominated in a currency other than that of the Group's parent company. For this purpose, financial instruments (generally derivatives) are contracted to hedge the impact on the capital ratio of changes in forward exchange rates. Grupo Santander mainly hedges the risk for the following currencies: BRL, CLP, MXN, CAD, COP, CNY, GBP, CHF, NOK, USD, PLN, UYU and PEN. The instruments used to hedge the risk of these investments are forex swaps, forex forward and spot currency purchases/sales. For this type of hedges, ineffectiveness scenarios are considered to be of low probability, given that the hedging instrument is designated considering the position determined and the spot rate at which the position is located. Annual report 2025755 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The following table sets out the maturity profile of the hedging instruments used in Grupo Santander non-dynamic hedging strategies: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | | | | | | | 31 December 2025 | | | | | | | | Up to one month | One to three months | Three months to one year | One year to five years | More than five years | Total | | Fair value hedges | 17,263 | 20,353 | 87,830 | 176,040 | 36,571 | 338,057 | | Interest rate risk | 15,778 | 19,042 | 82,060 | 160,461 | 28,007 | 305,348 | | Interest rate swap | 15,588 | 18,565 | 78,893 | 146,294 | 26,643 | 285,983 | | Future interest rate | 190 | 477 | 3,167 | 14,167 | 1,364 | 19,365 | | Exchange rate risk | 963 | 365 | 1,086 | — | 242 | 2,656 | | Fx forward | 963 | 365 | 1,086 | — | — | 2,414 | | Future interest rate | — | — | — | — | 242 | 242 | | Interest rate and exchange rate risk | 522 | 946 | 4,684 | 15,079 | 6,202 | 27,433 | | Interest rate swap | 15 | 54 | 218 | 3,898 | 1,267 | 5,452 | | Currency swap | 507 | 892 | 4,466 | 11,181 | 4,935 | 21,981 | | Base risk | — | — | — | 500 | — | 500 | | Interest rate swap | — | — | — | 500 | — | 500 | | Inflation risk | — | — | — | — | 2,120 | 2,120 | | Inflation swap | — | — | — | — | 2,120 | 2,120 | | | | | | | | | | Cash flow hedges | 6,499 | 4,405 | 21,536 | 103,955 | 11,874 | 148,269 | | Interest rate risk | 3,497 | 1,347 | 12,090 | 76,749 | 6,286 | 99,969 | | Future interest rate | — | — | 13 | 11,837 | 507 | 12,357 | | Interest rate swap | 3,497 | 1,347 | 12,077 | 64,712 | 5,779 | 87,412 | | Cap&Floor | — | — | — | 200 | — | 200 | | Exchange rate risk | 981 | 1,169 | 4,062 | 15,467 | 3,112 | 24,791 | | FX forward | 874 | 1,025 | 1,546 | — | — | 3,445 | | FX swap | 66 | 92 | 492 | 956 | — | 1,606 | | Currency swap | 41 | 52 | 2,024 | 14,511 | 3,112 | 19,740 | | Interest rate and exchange rate risk | 2,021 | 1,887 | 5,371 | 11,690 | 2,476 | 23,445 | | Interest rate swap | 761 | — | 227 | 2,085 | 180 | 3,253 | | Currency swap | 1,260 | 1,887 | 5,144 | 9,605 | 2,296 | 20,192 | | Equity risk | — | 2 | 13 | 49 | — | 64 | | Equity option | — | 2 | 13 | 49 | — | 64 | | | | | | | | | | Hedges of net investments in foreign operations: | 2,945 | 5,218 | 11,296 | 207 | — | 19,666 | | Exchange rate risk | 2,945 | 5,218 | 11,296 | 207 | — | 19,666 | | FX forward | 2,893 | 5,218 | 11,296 | 207 | — | 19,614 | | FX swap | 52 | — | — | — | — | 52 | | | 26,707 | 29,976 | 120,662 | 280,202 | 48,445 | 505,992 | Annual report 2025756 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | | | | | | | 31 December 2024 | | | | | | | | Up to one month | One to three months | Three months to one year | One year to five years | More than five years | Total | | Fair value hedges | 9,791 | 15,953 | 88,519 | 163,086 | 31,548 | 308,897 | | Interest rate risk | 8,725 | 14,680 | 85,981 | 154,440 | 26,326 | 290,152 | | Of which: | | | | | | | | Interest rate swap | 7,910 | 11,913 | 83,890 | 148,913 | 24,089 | 276,715 | | Exchange rate risk | 1,054 | 717 | 469 | 112 | 2,059 | 4,411 | | Of which: | | | | | | | | Fx forward | 1,054 | 717 | 469 | — | — | 2,240 | | Future interest rate | — | — | — | — | 2,059 | 2,059 | | Interest rate and exchange rate risk | 12 | 511 | 2,019 | 8,034 | 3,163 | 13,739 | | Of which: | | | | | | | | Interest rate swap | — | 149 | 104 | 1,543 | 924 | 2,720 | | Currency swap | 12 | 361 | 1,915 | 6,491 | 2,240 | 11,019 | | Base risk | — | — | — | 500 | — | 500 | | Interest rate swap | — | — | — | 500 | — | 500 | | Equity risk | — | 45 | 50 | — | — | 95 | | Equity swap | — | 45 | 50 | — | — | 95 | | | | | | | | | | Cash flow hedges | 19,696 | 10,088 | 43,111 | 94,030 | 12,346 | 179,271 | | Interest rate risk | 14,628 | 7,932 | 30,390 | 75,459 | 6,094 | 134,503 | | Of which: | | | | | | | | Future interest rate | 6,621 | — | — | — | — | 6,621 | | Interest rate swap | 7,146 | 5,856 | 20,846 | 67,495 | 5,320 | 106,663 | | Exchange rate risk | 2,982 | 1,377 | 8,765 | 14,703 | 2,826 | 30,653 | | Of which: | | | | | | | | FX forward | 2,594 | 1,310 | 5,382 | — | — | 9,286 | | Currency swap | 133 | 66 | 3,383 | 14,704 | 1,671 | 19,957 | | Interest rate and exchange rate risk | 2,086 | 778 | 3,785 | 3,813 | 1,262 | 11,724 | | Of which: | | | | | | | | Interest rate swap | 997 | — | 395 | 1,260 | 440 | 3,092 | | Currency swap | 1,090 | 778 | 3,389 | 2,553 | 822 | 8,632 | | Inflation risk | — | — | 153 | — | 2,163 | 2,316 | | Of which: | | | | | | | | Inflation swap | — | — | — | — | 2,163 | 2,163 | | Equity risk | — | 1 | 18 | 55 | 1 | 75 | | Option | — | 1 | 18 | 55 | 1 | 75 | | | | | | | | | | Hedges of net investments in foreign operations: | 3,918 | 5,644 | 13,997 | — | — | 23,559 | | Exchange rate risk | 3,918 | 5,644 | 13,997 | — | — | 23,559 | | FX forward | 3,918 | 5,644 | 13,997 | — | — | 23,559 | | | 33,405 | 31,685 | 145,627 | 257,116 | 43,894 | 511,727 | Annual report 2025757 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | | | | | | | 31 December 2023 | | | | | | | | Up to one month | One to three months | Three months to one year | One year to five years | More than five years | Total | | Fair value hedges | 6,862 | 14,535 | 59,170 | 139,486 | 21,739 | 241,792 | | Interest rate risk | 6,266 | 13,749 | 56,860 | 131,323 | 17,179 | 225,377 | | Of which: | | | | | | | | Interest rate swap | 6,176 | 13,525 | 55,918 | 125,405 | 14,358 | 215,382 | | Exchange rate risk | 566 | 678 | 619 | 50 | 2,418 | 4,331 | | Fx forward | 566 | 678 | 619 | 50 | — | 1,913 | | Future interest rate | — | — | — | — | 2,418 | 2,418 | | Interest rate and exchange rate risk | 30 | 108 | 1,691 | 8,113 | 2,142 | 12,084 | | Currency swap | 30 | 87 | 1,370 | 6,605 | 1,681 | 9,773 | | Interest rate swap | — | 21 | 321 | 1,508 | 461 | 2,311 | | | | | | | | | | Cash flow hedges | 7,873 | 16,149 | 43,913 | 83,291 | 6,570 | 157,796 | | Interest rate risk | 4,467 | 6,859 | 30,846 | 53,038 | 2,570 | 97,780 | | Of which: | | | | | | | | Future interest rate | — | — | — | 3,020 | — | 3,020 | | Interest rate swap | 4,241 | 6,429 | 29,863 | 48,735 | 2,301 | 91,569 | | Exchange rate risk | 2,655 | 7,087 | 6,607 | 16,711 | 1,763 | 34,823 | | Of which: | | | | | | | | FX forward | 2,013 | 2,344 | 4,617 | 2,186 | — | 11,160 | | Currency swap | 642 | 2,209 | 1,990 | 14,525 | 677 | 20,043 | | Interest rate and exchange rate risk | 407 | 1,547 | 2,270 | 7,187 | 806 | 12,217 | | Of which: | | | | | | | | Interest rate swap | — | 80 | — | 2,575 | 192 | 2,847 | | Currency swap | 407 | 1,467 | 2,270 | 4,612 | 614 | 9,370 | | Inflation risk | 344 | 656 | 4,182 | 6,296 | 1,430 | 12,908 | | Of which: | | | | | | | | Currency swap | 318 | 618 | 3,833 | 6,296 | 1,430 | 12,495 | | Equity risk | — | — | 8 | 59 | 1 | 68 | | Option | — | — | 8 | 59 | 1 | 68 | | | | | | | | | | Hedges of net investments in foreign operations: | 4,303 | 4,940 | 9,463 | — | — | 18,706 | | Exchange rate risk | 4,303 | 4,940 | 9,463 | — | — | 18,706 | | FX forward | 4,303 | 4,940 | 9,463 | — | — | 18,706 | | | 19,038 | 35,624 | 112,546 | 222,777 | 28,309 | 418,294 | Annual report 2025758 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Additionally, for Santander UK Group Holdings plc and Banco Santander, S.A., both the maturity profile, the average interest and exchange rate of hedging instruments by maturity buckets are shown: Santander UK Group Holdings plc group | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 31 December 2025 | | | | | | | | EUR million | | | | | | | | Up to one month | One to three months | Three months to one year | One year to five years | More than five years | Total | | Fair value hedges | | | | | | | | Interest rate risk | | | | | | | | Interest rate instruments | | | | | | | | Nominal | 14,490 | 12,469 | 69,366 | 86,738 | 6,222 | 189,285 | | Average fixed interest rate (%) GBP | 4.150 | 4.703 | 4.021 | 3.508 | 4.181 | | | Average fixed interest rate (%) EUR | — | 0.216 | — | 0.621 | 0.437 | | | Average fixed interest rate (%) USD | — | — | — | 4.091 | 1.325 | | | Interest rate and foreign exchange rate risk | | | | | | | | Exchange and interest rate instruments | | | | | | | | Nominal | 27.000 | 30 | 357 | 6,936 | 1,808 | 9,158 | | Average GBP/EUR exchange rate | 1.176 | 1.138 | 1.158 | 1.177 | 1.182 | | | Average GBP/USD exchange rate | — | — | 1.249 | 1.346 | 1.293 | | | Average fixed interest rate (%) EUR | 2 | 3 | 4.080 | 2.812 | 2.822 | | | Average fixed interest rate (%) USD | — | — | 4.991 | 4.385 | 4.364 | | | Inflation risk | | | | | | | | Interest rate instruments | | | | | | | | Nominal | — | — | — | — | 2,120 | 2,120 | | Average fixed interest rate (%) GBP | — | — | — | — | 4.997 | | | Cash flow hedges | | | | | | | | Interest rate risk | | | | | | | | Interest rate instruments | | | | | | | | Nominal | 360 | 111 | 3,472 | 35,087 | 4,067 | 43,097 | | Average fixed interest rate (%) GBP | 4.373 | 4.235 | 3.344 | 3.881 | 4.481 | | | Foreign exchange risk | | | | | | | | Exchange and interest rate instruments | | | | | | | | Nominal | — | — | 1,982 | 14,238 | 3,112 | 19,332 | | Average GBP/JPY exchange rate | — | — | — | — | — | | | Average GBP/CHF exchange rate | — | — | 1.121 | 1.111 | — | | | Average GBP/EUR exchange rate | — | — | — | 1.180 | 1.172 | | | Average GBP/USD exchange rate | — | — | 1.334 | 1.275 | 1.373 | | | Average GBP/CAD exchange rate | — | — | — | — | — | | | Equity risk | | | | | | | | Equity instruments | | | | | | | | Nominal | — | 2 | 13 | 49 | — | 64 | | Interest rate and foreign exchange rate risk | | | | | | | | Exchange and interest rate instruments | | | | | | | | Nominal | — | — | 87 | 2,206 | 420 | 2,713 | | Average GBP/EUR exchange rate | — | — | 1.166 | 1.181 | 1.172 | | | Average GBP/USD exchange rate | — | — | 1.334 | 1.281 | 1.397 | | | Average fixed interest rate (%) GBP | — | — | 2.609 | 3.973 | 4.475 | | Annual report 2025759 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 31 December 2024 | | | | | | | | EUR million | | | | | | | | Up to one month | One to three months | Three months to one year | One year to five years | More than five years | Total | | Fair value hedges | | | | | | | | Interest rate risk | | | | | | | | Interest rate instruments | | | | | | | | Nominal | 5,033 | 7,598 | 64,755 | 93,176 | 4,110 | 174,672 | | Average fixed interest rate (%) GBP | 3.749 | 4.293 | 4.496 | 3.868 | 3.653 | | | Average fixed interest rate (%) EUR | 0.200 | (0.346) | (0.446) | 0.585 | 4.370 | | | Average fixed interest rate (%) USD | 1.677 | 1.534 | 1.531 | 5.756 | 0.449 | | | Interest rate and foreign exchange rate risk | | | | | | | | Exchange and interest rate instruments | | | | | | | | Nominal | — | 212 | 258 | 2,280 | 1,152 | 3,902 | | Average GBP/EUR exchange rate | — | 1.136 | 1.158 | 1.162 | 1.176 | | | Average GBP/USD exchange rate | — | — | — | 1.318 | 1.281 | | | Average fixed interest rate (%) EUR | — | — | 1.350 | 3.304 | 2.940 | | | Average fixed interest rate (%) USD | — | — | — | 4.831 | 4.375 | | | Cash flow hedges | | | | | | | | Interest rate risk | | | | | | | | Interest rate instruments | | | | | | | | Nominal | 5,330 | 4,190 | 14,896 | 34,841 | 4,325 | 63,582 | | Average fixed interest rate (%) GBP | 4.592 | 4.075 | 4.761 | 3.707 | 4.352 | | | Foreign exchange risk | | | | | | | | Exchange and interest rate instruments | | | | | | | | Nominal | 311 | 954 | 5,941 | 13,235 | 2,730 | 23,171 | | Average GBP/JPY exchange rate | 178.368 | 179.995 | 187.640 | — | — | | | Average GBP/CHF exchange rate | — | — | 1.086 | 1.115 | — | | | Average GBP/EUR exchange rate | — | 1.203 | 1.188 | 1.177 | 1.162 | | | Average GBP/USD exchange rate | — | — | 1.238 | 1.297 | 1.388 | | | Average GBP/CAD exchange rate | — | — | 1.758 | — | — | | | Equity risk | | | | | | | | Equity instruments | | | | | | | | Nominal | — | — | 19 | 55 | 1 | 75 | | Interest rate and foreign exchange rate risk | | | | | | | | Exchange and interest rate instruments | | | | | | | | Nominal | 1,993 | 476 | 1,039 | 2,294 | 707 | 6,509 | | Average GBP/EUR exchange rate | 1.124 | 1.370 | 1.161 | 1.213 | 1.179 | | | Average GBP/USD exchange rate | — | — | 1.538 | 1.319 | 1.537 | | | Average fixed interest rate (%) GBP | 1.480 | 2.760 | 3.203 | 2.771 | 4.885 | | | Inflation risk | | | | | | | | Interest rate instruments | | | | | | | | Nominal | — | — | — | — | 2,163 | 2,163 | | Average fixed interest rate (%) GBP | — | — | — | — | 4.983 | | Annual report 2025760 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 31 December 2023 | | | | | | | | EUR million | | | | | | | | Up to one month | One to three months | Three months to one year | One year to five years | More than five years | Total | | Fair value hedges | | | | | | | | Interest rate risk | | | | | | | | Interest rate instruments | | | | | | | | Nominal | 4,163 | 8,230 | 37,158 | 70,075 | 3,467 | 123,093 | | Average fixed interest rate (%) GBP | 2.380 | 3.190 | 3.420 | 3.890 | 3.990 | | | Average fixed interest rate (%) EUR | 1.140 | 0.180 | 0.450 | 0.210 | 3.920 | | | Average fixed interest rate (%) USD | 2.600 | 2.460 | 4.230 | 1.360 | 4.910 | | | Interest rate and foreign exchange rate risk | | | | | | | | Exchange and interest rate instruments | | | | | | | | Nominal | — | 41 | — | 2,172 | 198 | 2,411 | | Average GBP/EUR exchange rate | — | 1.113 | — | 1.156 | 1.148 | | | Average GBP/USD exchange rate | — | — | — | 1.318 | — | | | Average fixed interest rate (%) EUR | — | — | — | 2.770 | 3.480 | | | Average fixed interest rate (%) USD | — | — | — | 4.830 | — | | | Cash flow hedges | | | | | | | | Interest rate risk | | | | | | | | Interest rate instruments | | | | | | | | Nominal | 1,050 | 3,553 | 15,756 | 31,941 | 1,405 | 53,705 | | Average fixed interest rate (%) GBP | 5.060 | 3.050 | 5.380 | 3.840 | 3.450 | | | Foreign exchange risk | | | | | | | | Exchange and interest rate instruments | | | | | | | | Nominal | 1,068 | 6,266 | 3,104 | 10,888 | 1,763 | 23,089 | | Average GBP/JPY exchange rate | 154.135 | 153.954 | 167.846 | — | — | | | Average GBP/CHF exchange rate | 1.092 | 1.093 | 1.089 | 1.121 | 1.121 | | | Average GBP/EUR exchange rate | — | 1.197 | 1.167 | 1.179 | — | | | Average GBP/USD exchange rate | — | 1.392 | — | 1.277 | 1.388 | | | Equity risk | | | | | | | | Equity instruments | | | | | | | | Nominal | — | — | 8 | 58 | 2 | 68 | | Interest rate and foreign exchange rate risk | | | | | | | | Exchange and interest rate instruments | | | | | | | | Nominal | 100 | 905 | 576 | 5,614 | 719 | 7,914 | | Average GBP/EUR exchange rate | 1,183 | — | 1.254 | 1.198 | 1.189 | | | Average GBP/USD exchange rate | — | 1,663 | — | 1.383 | 1.537 | | | Average fixed interest rate (%) GBP | 2.570 | 2.540 | 2.960 | 2.420 | 4.810 | | Annual report 2025761 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Banco Santander, S.A. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 31 December 2025 | | | | | | | | EUR million | | | | | | | | Up to one month | One to three months | Three months to one year | One year to five years | More than five years | Total | | Fair value hedges | | | | | | | | Interest rate risk | | | | | | | | Interest rate instruments | | | | | | | | Nominal | 746 | 2,790 | 6,849 | 34,331 | 17,003 | 61,719 | | Average fixed interest rate (%) GBP | — | 2.155 | 1.500 | 5.725 | 5.371 | | | Average fixed interest rate (%) EUR | 3.303 | 2.809 | 2.101 | 3.139 | 0.330 | | | Average fixed interest rate (%) CHF | — | — | — | 0.403 | — | | | Average fixed interest rate (%) USD | 5.075 | 4.422 | 1.983 | 3.653 | 4.991 | | | Average fixed interest rate (%) CZK | — | 1.650 | 2.350 | — | — | | | Average fixed interest rate (%) NOK | — | — | — | — | 2.403 | | | Average fixed interest rate (%) AUD | — | — | — | — | 3.824 | | | Average fixed interest rate (%) RON | — | — | 4.880 | 3.200 | — | | | Average fixed interest rate (%) HKD | — | — | — | 1.960 | — | | | Average fixed interest rate (%) NZD | — | — | — | — | 3.252 | | | Foreign exchange risk | | | | | | | | Exchange and interest rate instruments | | | | | | | | Nominal | 329 | 250 | 697 | — | — | 1,276 | | Average CNY/EUR exchange rate | — | 8,273 | 8,284 | — | — | | | Average MXN/EUR exchange rate | 2,173 | — | — | — | — | | | Interest rate and foreign exchange rate risk | | | | | | | | Exchange and interest rate instruments | | | | | | | | Nominal | 46 | 99 | 956 | 3,750 | 1,608 | 6,459 | | Average fixed interest rate (%) AUD/EUR | — | — | — | 5.710 | 6.101 | | | Average fixed interest rate (%) CZK/EUR | — | — | — | 4.264 | — | | | Average fixed interest rate (%) RON/EUR | — | — | — | — | 0.697 | | | Average fixed interest rate (%) HKD/EUR | — | — | — | 4.618 | — | | | Average fixed interest rate (%) JPY/EUR | — | — | — | 0.975 | 1.407 | | | Average fixed interest rate (%) NOK/EUR | — | — | — | 3.441 | 4.155 | | | Average fixed interest rate (%) CHF/EUR | — | — | — | 2.021 | 1.919 | | | Average fixed interest rate (%) USD/CLP | — | — | — | — | — | | | Average fixed interest rate (%) USD/COP | 11.669 | 11.703 | 9.869 | 9.356 | — | | | Average fixed interest rate (%) USD/MXN | — | — | 8.800 | — | — | | | Average AUD/EUR exchange rate | — | — | — | 1.617 | 1.584 | | | Average NZD/EUR exchange rate | — | — | — | — | 1.666 | | | Average CZK/EUR exchange rate | — | 26.131 | 25.365 | 24.832 | — | | | Average EUR/COP exchange rate | — | — | — | — | — | | | Average EUR/USD exchange rate | — | — | 0.940 | 0.948 | — | | | Average HKD/EUR exchange rate | — | — | — | 8.488 | — | | | Average JPY/EUR exchange rate | — | — | — | 137.802 | 129.229 | | | Average MXN/EUR exchange rate | — | — | — | 19.083 | — | | | Average NOK/EUR exchange rate | — | — | — | 9.519 | 10.651 | | | Average RON/EUR exchange rate | — | — | 4.948 | 4.927 | 4.980 | | | Average CHF/EUR exchange rate | — | — | — | 1.019 | 0.935 | | | Average USD/COP exchange rate | — | — | — | — | — | | | Average USD/MXN exchange rate | — | — | 0.055 | — | — | | | Basis Risk | | | | | | | | Basis risk instruments | | | | | | | | Nominal | — | — | — | 500 | — | 500 | Annual report 2025762 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 31 December 2025 | | | | | | | | EUR million | | | | | | | | Up to one month | One to three months | Three months to one year | One year to five years | More than five years | Total | | Cash flow hedges | | | | | | | | Interest rate and foreign exchange rate risk | | | | | | | | Interest rate and foreign exchange rate instruments | | | | | | | | Nominal | 236 | — | 288 | 213 | 80 | 817 | | Average fixed interest rate (%) AUD/EUR | — | — | — | 5.678 | — | | | Average fixed interest rate (%) CHF/EUR | 2.258 | — | — | — | — | | | Average AUD/EUR exchange rate | — | — | 1.590 | 1.577 | 1.562 | | | Average RON/EUR exchange rate | — | — | 4.940 | — | — | | | Average CHF/EUR exchange rate | 1.002 | — | — | — | — | | | Interest rate risk | | | | | | | | Bond Forward instruments | | | | | | | | Nominal | — | — | 2,120 | 9,003 | 507 | 11,630 | | Average fixed interest rate (%) EUR | — | — | 2.964 | 2.695 | 3.016 | | | Average fixed interest rate (%) AUD | — | — | 1.650 | — | — | | | Exchange rate risk | | | | | | | | Exchange instruments | | | | | | | | Nominal | 9 | — | 9 | — | — | 18 | | Average exchange rate GBP/EUR | 1.129 | — | 1.119 | — | — | | | Hedges of net investments in foreign operations | | | | | | | | Exchange rate risk | | | | | | | | Exchange and interest rate instruments | | | | | | | | Nominal | 2,574 | 4,530 | 9,866 | 207 | — | 17,177 | | Average BRL/EUR exchange rate | 6.892 | 6.979 | 6.652 | — | — | | | Average CLP/EUR exchange rate | 1,054.241 | 1,018.994 | 1,108.027 | 1,099.571 | — | | | Average COP/EUR exchange rate | — | 4,566 | — | — | — | | | Average GBP/EUR exchange rate | 0.860 | 0.867 | 0.884 | — | — | | | Average MXN/EUR exchange rate | 22.187 | 23.465 | 22.823 | — | — | | | Average USD/EUR exchange rate | — | 1.078 | 1.175 | — | — | | | Average PLN/EUR exchange rate | 4.321 | 4.307 | 4.309 | — | — | | | Average CAD/EUR exchange rate | 1.611 | — | — | — | — | | | Average UYU/EUR exchange rate | 48.093 | 48.729 | 49.916 | 53.350 | — | | Annual report 2025763 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 31 December 2024 | | | | | | | | EUR million | | | | | | | | Up to one month | One to three months | Three months to one year | One year to five years | More than five years | Total | | Fair value hedges | | | | | | | | Interest rate risk | | | | | | | | Interest rate instruments | | | | | | | | Nominal | 1,431 | 4,446 | 6,878 | 33,324 | 15,991 | 62,070 | | Average fixed interest rate (%) GBP | — | 0.020 | 3.120 | 2.640 | 5.370 | | | Average fixed interest rate (%) EUR | 1.340 | 0.010 | 2.000 | 3.460 | 3.170 | | | Average fixed interest rate (%) USD | 0.010 | 3.500 | 2.740 | 4.460 | 4.720 | | | Average fixed interest rate (%) CZK | — | — | — | 2.000 | — | | | Average fixed interest rate (%) NOK | — | — | — | — | 2.400 | | | Average fixed interest rate (%) AUD | — | — | — | — | 3.820 | | | Average fixed interest rate (%) RON | — | 3.610 | — | 4.200 | — | | | Average fixed interest rate (%) HKD | — | — | — | 1.960 | — | | | Average fixed interest rate (%) NZD | — | — | — | — | 3.250 | | | Foreign exchange risk | | | | | | | | Exchange and interest rate instruments | | | | | | | | Nominal | 473 | 405 | 287 | — | — | 1,165 | | Average CNY/EUR exchange rate | 7,710 | 7,710 | 7,710 | — | — | | | Average MXN/EUR exchange rate | 2,178 | — | — | — | — | | | Interest rate and foreign exchange rate risk | | | | | | | | Exchange and interest rate instruments | | | | | | | | Nominal | 12 | 148 | 1,355 | 4,859 | 1,669 | 8,043 | | Average fixed interest rate (%) AUD/EUR | — | — | — | 5.690 | 6.100 | | | Average fixed interest rate (%) CZK/EUR | — | — | — | 4.190 | — | | | Average fixed interest rate (%) RON/EUR | — | — | — | — | 6.970 | | | Average fixed interest rate (%) HKD/EUR | — | — | — | 4.620 | — | | | Average fixed interest rate (%) JPY/EUR | — | — | — | 1.300 | 1.410 | | | Average fixed interest rate (%) NOK/EUR | — | — | — | 3.440 | 4.500 | | | Average fixed interest rate (%) CHF/EUR | — | — | — | 2.030 | 2.250 | | | Average fixed interest rate (%) USD/COP | — | 12.750 | 10.580 | 10.540 | 7.760 | | | Average fixed interest rate (%) EUR/GBP | 6.690 | — | — | — | — | | | Average fixed interest rate (%) USD/MXN | — | — | 11.300 | — | — | | | Average AUD/EUR exchange rate | — | — | — | 1.599 | 1.584 | | | Average NZD/EUR exchange rate | — | — | — | — | 1.666 | | | Average CZK/EUR exchange rate | — | — | 26.030 | 25.634 | — | | | Average EUR/GBP exchange rate | 1.189 | — | — | — | — | | | Average EUR/USD exchange rate | — | — | 0.982 | 0.943 | — | | | Average HKD/EUR exchange rate | — | — | — | 8.488 | — | | | Average JPY/EUR exchange rate | — | — | — | 134.151 | 129.229 | | | Average MXN/EUR exchange rate | — | — | — | 19.083 | — | | | Average NOK/EUR exchange rate | — | — | — | 9.519 | 10.429 | | | Average RON/EUR exchange rate | — | 4.810 | — | 4.940 | 4.980 | | | Average CHF/EUR exchange rate | — | — | — | 1.019 | 0.932 | | | Average USD/COP exchange rate | — | — | — | — | — | | | Average USD/MXN exchange rate | — | — | 0.052 | — | — | | | Basis Risk | | | | | | | | Basis risk instruments | | | | | | | | Nominal | — | — | — | 500 | — | 500 | Annual report 2025764 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 31 December 2024 | | | | | | | | EUR million | | | | | | | | Up to one month | One to three months | Three months to one year | One year to five years | More than five years | Total | | Cash flow hedges | | | | | | | | Interest rate and foreign exchange rate risk | | | | | | | | Interest rate and foreign exchange rate instruments | | | | | | | | Nominal | — | — | — | 1,055 | 84 | 1,139 | | Average fixed interest rate (%) AUD/EUR | — | — | — | 3.520 | — | | | Average fixed interest rate (%) CHF/EUR | — | — | — | 3.110 | — | | | Average AUD/EUR exchange rate | — | — | — | 1.580 | 1.560 | | | Average RON/EUR exchange rate | — | — | — | 4.940 | — | | | Average CHF/EUR exchange rate | — | — | — | 1.000 | — | | | Interest rate risk | | | | | | | | Bond Forward instruments | | | | | | | | Nominal | — | — | 6,200 | 5,820 | — | 12,020 | | Average fixed interest rate (%) EUR | — | — | — | 2.910 | — | | | Exchange rate risk | | | | | | | | Exchange instruments | | | | | | | | Nominal | 14 | 83 | 125 | — | — | 222 | | Average exchange rate GBP/EUR | 1.200 | 1.170 | 1.190 | — | — | | | Hedges of net investments in foreign operations | | | | | | | | Exchange rate risk | | | | | | | | Exchange and interest rate instruments | | | | | | | | Nominal | 3,240 | 5,070 | 12,821 | — | — | 21,131 | | Average BRL/EUR exchange rate | 5.990 | 6.120 | 6.270 | — | — | | | Average CLP/EUR exchange rate | 1,052.780 | 1,066.580 | 1,045.090 | — | — | | | Average COP/EUR exchange rate | — | 4,703 | — | — | — | | | Average GBP/EUR exchange rate | 0.860 | 0.850 | 0.850 | — | — | | | Average MXN/EUR exchange rate | 20.280 | 19.830 | 21.970 | — | — | | | Average USD/EUR exchange rate | 1.090 | 1.080 | 1.090 | — | — | | | Average PLN/EUR exchange rate | 4.370 | 4.410 | 4.410 | — | — | | | Average CAD/EUR exchange rate | — | 1.500 | — | — | — | | | Average CHF/EUR exchange rate | — | 0.940 | — | — | — | | | Average UYU/EUR exchange rate | 45.820 | 45.160 | 48.290 | — | — | | Annual report 2025765 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 31 December 2023 | | | | | | | | EUR million | | | | | | | | Up to one month | One to three months | Three months to one year | One year to five years | More than five years | Total | | Fair value hedges | | | | | | | | Interest rate risk | | | | | | | | Interest rate instruments | | | | | | | | Nominal | 1,532 | 194 | 7,880 | 22,714 | 8,775 | 41,095 | | Average fixed interest rate (%) GBP | — | — | 1.375 | 4.479 | 2.036 | | | Average fixed interest rate (%) EUR | 0.096 | 0.014 | 2.085 | 2.422 | 3.421 | | | Average fixed interest rate (%) CHF | — | — | 1.010 | — | — | | | Average fixed interest rate (%) USD | 0.015 | 3.688 | 2.603 | 3.801 | 4.446 | | | Foreign exchange risk | | | | | | | | Exchange and interest rate instruments | | | | | | | | Nominal | 278 | 634 | 524 | 50 | — | 1,486 | | Average PEN/USD exchange rate | 3.784 | 3.751 | — | — | — | | | Average CNY/EUR exchange rate | — | 7.323 | 7.732 | 7.716 | — | | | Average AUD/EUR exchange rate | 1.648 | 1.665 | — | — | — | | | Average MXN/EUR exchange rate | — | 19.363 | — | — | — | | | Average COP/USD exchange rate | 4,159.190 | 3,998.060 | — | — | — | | | Average MAD/EUR exchange rate | 10.929 | 11.057 | — | — | — | | | Average PEN/EUR exchange rate | 4.095 | 4.110 | — | — | — | | | Interest rate and foreign exchange rate risk | | | | | | | | Exchange and interest rate instruments | | | | | | | | Nominal | 30 | 66 | 1,450 | 4,321 | 1,150 | 7,017 | | Average fixed interest rate (%) AUD/EUR | — | — | — | 4.800 | 3.615 | | | Average fixed interest rate (%) CZK/EUR | — | — | — | 2.000 | — | | | Average fixed interest rate (%) RON/EUR | 5.130 | — | — | 3.967 | — | | | Average fixed interest rate (%) HKD/EUR | — | — | 2.580 | 5.270 | — | | | Average fixed interest rate (%) JPY/EUR | — | — | 0.465 | 1.298 | 1.407 | | | Average fixed interest rate (%) NOK/EUR | — | — | — | 3.441 | 4.501 | | | Average fixed interest rate (%) CHF/EUR | — | — | — | 1.243 | — | | | Average fixed interest rate (%) USD/MXN | — | — | 14.250 | — | — | | | Average fixed interest rate (%) USD/COP | — | 17.980 | 6.152 | 13.207 | 7.149 | | | Average fixed interest rate (%) EUR/USD | — | — | (0.140) | — | — | | | Average fixed interest rate (%) USD/CLP | — | — | 3.450 | — | — | | | Average AUD/EUR exchange rate | — | — | — | 1.499 | 1.545 | | | Average CZK/EUR exchange rate | — | — | — | 25.831 | — | | | Average EUR/USD exchange rate | — | — | 0.891 | 0.961 | — | | | Average HKD/EUR exchange rate | — | — | 8.782 | 8.666 | — | | | Average JPY/EUR exchange rate | — | — | 120.568 | 134.151 | 129.229 | | | Average NOK/EUR exchange rate | — | — | — | 9.519 | 10.429 | | | Average RON/EUR exchange rate | 4.711 | — | — | 4.887 | — | | | Average CHF/EUR exchange rate | — | — | — | 1.104 | — | | | Average MXN/EUR exchange rate | — | — | — | — | 19.083 | | | Average USD/CLP exchange rate | — | — | 0.001 | — | — | | | Average NZD/EUR exchange rate | — | — | — | — | 1.666 | | | Average USD/MXN exchange rate | — | — | 0.058 | — | — | | Annual report 2025766 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 31 December 2023 | | | | | | | | EUR million | | | | | | | | Up to one month | One to three months | Three months to one year | One year to five years | More than five years | Total | | Cash flow hedges | | | | | | | | Interest rate and foreign exchange rate risk | | | | | | | | Interest rate and foreign exchange rate instruments | | | | | | | | Nominal | — | — | 414 | 1,075 | 86 | 1,575 | | Average fixed interest rate (%) CHF/EUR | — | — | — | 3.106 | — | | | Average fixed interest rate (%) AUD/EUR | — | — | — | 3.521 | — | | | Average EUR/GBP exchange rate | — | — | 1.173 | — | — | | | Average AUD/EUR exchange rate | — | — | 1.625 | 1.584 | 1.562 | | | Average RON/EUR exchange rate | — | — | — | 4.940 | — | | | Average CHF/EUR exchange rate | — | — | — | 1.002 | — | | | Interest rate risk | | | | | | | | Bond Forward instruments | | | | | | | | Nominal | 750 | 1,500 | 7,750 | 0 | 0 | 10,000 | | Average fixed interest rate (%) EUR | (0.124) | (0.889) | 0.016 | — | — | | | Exchange rate risk | | | | | | | | Exchange instruments | | | | | | | | Nominal | 13 | 25 | 111 | — | — | | | Average exchange rate GBP/EUR | 1.148 | 1.146 | 1.138 | — | — | | | Hedges of net investments in foreign operations | | | | | | | | Exchange rate risk | | | | | | | | Exchange and interest rate instruments | | | | | | | | Nominal | 3,593 | 4,870 | 8,034 | — | — | 16,497 | | Average BRL/EUR exchange rate | 5.569 | 5.505 | 5.481 | — | — | | | Average CLP/EUR exchange rate | 916.724 | 936.166 | 987.202 | — | — | | | Average COP/EUR exchange rate | — | 4,525.656 | — | — | — | | | Average GBP/EUR exchange rate | 0.866 | 0.867 | 0.876 | — | — | | | Average MXN/EUR exchange rate | 20.078 | 20.589 | 20.210 | — | — | | | Average USD/EUR exchange rate | — | 1.129 | 1.081 | — | — | | | Average PLN/EUR exchange rate | 4.664 | 4.752 | 4.580 | — | — | | | Average CAD/EUR exchange rate | — | 1.461 | — | — | — | | | Average CHF/EUR exchange rate | — | 0.940 | — | — | — | | | Average UYU/EUR exchange rate | 43.235 | 43.521 | 44.400 | — | — | | Annual report 2025767 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### Other geographies Consumer Group entities mainly have loans portfolios at fixed interest rates and are therefore, exposed to changes in fair value due to movements in market interest rates. The entities manage this risk by contracting interest rate swaps in which they pay a fixed rate and receive a variable rate. Interest rate risk is the only one hedged and, therefore, other risks, such as credit risk, are managed but not hedged by the entities. The interest rate risk component is determined as the change in fair value of fixed rate loans arising solely from changes in a reference rate. This strategy is designated as a fair value hedge and its effectiveness is assessed by comparing changes in the fair value of loans attributable to changes in reference interest rates with changes in the fair value of interest rate swaps. In addition, in order to access international markets with the aim of obtaining sources of financing, some Consumer Group´s entities issue fixed rate debt in their own currency and in other currencies that differ from their functional currency. Therefore, they are exposed to changes in both interest rates and exchange rates, which they mitigate with derivatives (interest rate swaps, fx forward and cross currency swaps) in which they receive a fixed interest rate and pay a variable interest rate, implemented with a fair value hedge. The cash flow hedges of the Grupo Santander´s entities hedge the foreign currency risk of loans and financing. Finally, it has hedges of net investments abroad to hedge the foreign exchange risk of the shareholding in NOK, CNY, PLN, CAD and CHF currencies. Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México, applies accounting hedges for both fair value and cash flows through micro-hedging structures to mitigate risks arising from fluctuations in interest rates and exchange rates. In its cash flow hedges, the Bank is primarily exposed to exchange rate risk stemming from portfolios of Mexican government bonds issued in a currency other than its functional currency, Brazilian government bonds denominated in reais, US Treasury bonds in dollars, and fixed-rate debt issuances in USD. These exposures are mitigated through fixed-rate cross-currency swaps and FX forward contracts, using different currency combinations (MXN, USD, and BRL) depending on the nature of each portfolio. The Bank also maintains exposures to interest rate risk associated with bank loans and commercial loans, both fixed-rate and floating-rate. To manage this risk, interest rate swaps are used, whereby the Bank exchanges fixed-rate cash flows for variable- rate cash flows or vice versa, in order to stabilize future cash flows. In its fair value hedges, Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México holds portfolios of long-term, fixed-rate commercial loans and Mexican government bonds, denominated in both local and non-functional currencies. These portfolios are exposed to changes in fair value resulting from fluctuations in market interest rates and, where applicable, exchange rates. These exposures are mitigated through interest rate swaps and cross-currency swaps, designated as hedging instruments. Only interest rate and exchange rate risks are hedged, while other risks, such as credit risk, are managed by the entity but are not designated as hedged risks within the hedging relationships. The effectiveness of the hedges is assessed by comparing the changes in the fair value of the hedged items attributable to the hedged risk with the changes in the fair value of the derivative instruments. Banco Santander (Brasil) S.A. has fair value and cash flow hedges to mitigate risks arising from market interest rate fluctuations. In market risk hedging, the Bank protects recognized assets and liabilities against changes in interest rates, exchange rates, and inflation. The risk management methodology segments exposures by risk factor (BRL/USD exchange rate risk, BRL fixed interest rate risk, USD foreign exchange coupon risk, inflation risk, among others). To mitigate these risks, the Bank primarily uses interest rate swaps, currency swaps, and futures contracts, designated as hedging instruments within hedge accounting structures. The results derived from hedging instruments and hedged items are recognized directly in the income statement. In cash flow hedging, Banco Santander (Brasil) S.A. hedges its exposure to cash flow variability, primarily associated with interest payments and exchange rate movements, arising from assets and liabilities denominated in foreign currency or at variable rates. To this end, futures contracts and interest rate swaps are used to provide predictability to future cash flows. The effective portion of the change in the value of the hedging instruments is temporarily recognized in equity and reclassified to profit or loss when the anticipated transaction occurs, while the ineffective portion is recognized directly in profit or loss. As of December 31, 2025, no amounts corresponding to the ineffective portion have been recorded. Additionally, Banco Santander - Chile uses fair value hedges with cross currency swaps, interest rate swaps and call money swaps to hedge its exposure to changes in the fair value of the hedged item attributable to interest rates. The aforementioned hedging instruments modify the effective cost of long-term issues, from a fixed interest rate to a variable interest rate. In addition, it also makes cash flow hedges in which it uses cross currency swaps to cover the risk of variability of flows attributable to changes in the interest rate of bonds and interbank loans issued at variable rates, as well as to cover the variation of foreign currency, mainly in United States dollars. To hedge the inflation risk present in certain items, it uses both forwards and cross currency swaps. At Santander Bank, National Association, Interest Rate Swaps are used to leave commercial loans at a fixed rate at a variable rate in USD indexed to 1-month Libor or SOFR, under cash flow hedges. Annual report 2025768 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Regarding the hedged items, the following table shows the detail of the type of hedging, the risk that is hedged and which products are being hedged  at 31 December 2025,  2024 and 2023. The products that are being hedged are mainly borrowed deposits, financial deposits, loans, government bonds as assets and financial bonds as liabilities: | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | EUR million | | | | | | | | | | 31 December 2025 | | | | | | | | | | Carrying amount of hedged items | | | Accumulated amount of fair value adjustments on the hedged item | | Balance sheet line item | Change in fair value of hedged item for ineffectiveness assessment | Cash flow reserves or conversion reserves | | | Assets | Liabilities | | Assets | Liabilities | Continuing hedges | Discontinued hedges | | Fair value hedges | 166,907 | 107,124 | | (191) | 490 | Loans and advances / Deposits and Debt securities / Debt securities issued | 461 | — | — | | Interest rate risk | 152,380 | 93,395 | | (201) | 364 | | 400 | — | — | | Exchange rate risk | 2,154 | 242 | | (6) | — | | (43) | — | — | | Interest and Exchange rate risk | 9,619 | 13,487 | | 3 | 126 | | 66 | — | — | | Inflation risk | 2,253 | — | | 13 | — | | 38 | — | — | | Credit risk | — | — | | — | — | | — | — | — | | Base risk | 501 | — | | — | — | | — | — | — | | Equity risk | — | — | | — | — | | — | — | — | | | | | | | | | | | | | Cash flow hedges | | | | | | | (1,063) | 401 | 235 | | Interest rate risk | | | | | | | (1,174) | 381 | 86 | | Exchange rate risk | | | | | | | 240 | (8) | — | | Interest and Exchange rate risk | | | | | | | (8) | 28 | (13) | | Inflation risk | | | | | | | (131) | — | 162 | | Equity risk | | | | | | | 10 | | — | | Other risk | | | | | | | — | — | — | | | | | | | | | | | | | Net foreign investments hedges | 19,666 | — | | | | | (136) | (7,867) | 2 | | Exchange rate risk | 19,666 | — | | | | | (136) | (7,867) | 2 | | | 186,573 | 107,124 | | (191) | 490 | | (738) | (7,466) | 237 | Annual report 2025769 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | EUR million | | | | | | | | | | 31 December 2024 | | | | | | | | | | Carrying amount of hedged items | | | Accumulated amount of fair value adjustments on the hedged item | | Balance sheet line item | Change in fair value of hedged item for ineffectiveness assessment | Cash flow reserves or conversion reserves | | | Assets | Liabilities | | Assets | Liabilities | Continuing hedges | Discontinued hedges | | Fair value hedges | 138,906 | 32,642 | | (1,412) | (1,200) | Loans and advances / Deposits and Debt securities / Debt securities issued | (461) | — | — | | Interest rate risk | 133,149 | 23,780 | | (1,345) | (1,176) | | (343) | — | — | | Exchange rate risk | 2,017 | 1,562 | | 1 | 3 | | (118) | — | — | | Interest and Exchange rate risk | 3,238 | 7,205 | | (68) | (27) | | 1 | — | — | | Inflation risk | — | — | | — | — | | — | — | — | | Credit risk | — | — | | — | — | | — | — | — | | Base risk | 502 | — | | — | — | | — | — | — | | Equity risk | — | 95 | | — | — | | (1) | — | — | | | | | | | | | | | | | Cash flow hedges | | | | | | | (564) | (478) | 50 | | Interest rate risk | | | | | | | (156) | (794) | 83 | | Exchange rate risk | | | | | | | (439) | 213 | 19 | | Interest and Exchange rate risk | | | | | | | (40) | 11 | — | | Inflation risk | | | | | | | 69 | 82 | (52) | | Equity risk | | | | | | | 2 | 10 | — | | | | | | | | | | | | | Net foreign investments hedges | 23,559 | — | | | | | (420) | (8,002) | — | | Exchange rate risk | 23,559 | — | | | | | (420) | (8,002) | — | | | 162,465 | 32,642 | | (1,412) | (1,200) | | (1,445) | (8,480) | 50 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | EUR million | | | | | | | | | | 31 December 2023 | | | | | | | | | | Carrying amount of hedged items | | | Accumulated amount of fair value adjustments on the hedged item | | Balance sheet line item | Change in fair value of hedged item for ineffectiveness assessment | Cash flow reserves or conversion reserves | | | Assets | Liabilities | | Assets | Liabilities | Continuing hedges | Discontinued hedges | | Fair value hedges | 134,095 | 26,946 | | (1,798) | (1,652) | Loans and advances / Deposits and Debt securities / Debt securities issued | 1,928 | | — | | Interest rate risk | 130,672 | 19,176 | | (1,682) | (1,546) | | 1,757 | — | — | | Exchange rate risk | 637 | 1,365 | | (1) | (3) | | 60 | — | — | | Interest and Exchange rate risk | 2,786 | 6,405 | | (115) | (103) | | 111 | — | — | | Inflation risk | — | — | | — | — | | — | — | — | | Credit risk | — | — | | — | — | | — | — | — | | | | | | | | | | | | | Cash flow hedges | | | | | | | (1,824) | (813) | (173) | | Interest rate risk | | | | | | | (2,182) | (797) | (77) | | Exchange rate risk | | | | | | | 500 | (80) | — | | Interest and Exchange rate risk | | | | | | | 100 | (144) | — | | Inflation risk | | | | | | | (233) | 196 | (96) | | Equity risk | | | | | | | (9) | 12 | — | | | | | | | | | | | | | Net foreign investments hedges | 18,706 | — | | | | | 1,888 | (8,684) | — | | Exchange rate risk | 18,706 | — | | | | | 1,888 | (8,684) | — | | | 152,801 | 26,946 | | (1,798) | (1,652) | | 1,992 | (9,497) | (173) | Annual report 2025770 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The cumulative amount of adjustments of the fair value hedging instruments that remain in the balance for hedges items that are no longer adjusted by profit and loss of coverage as at 31 December 2025 is EUR 227 losses (EUR 775 million and EUR 1,006 million losses in 2024 and 2023, respectively). The net impact of the hedges are shown in the following table: | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | | | | 31 December 2025 | | | | | | Earnings/ (losses) recognised in another cumulative overall result | Ineffective recognised in the income statement | Line of the income statement that includes the ineffectiveness of cash flows | Reclassified amount of reserves to the income statement due to: | | | Cover transaction affecting the income statement | Line of the income statement that includes reclassified items | | Fair value hedges | | 7 | Gains or losses financial assets/liabilities | | | | Interest rate risk | | (33) | | | | | Exchange rate risk | | 3 | | | | | Interest rate and exchange rate risk | | (9) | | | | | Inflation risk | | 46 | | | | | | | | | | | | Cash flow hedges | 1,063 | 4 | | (706) | Interest margin/Gains or losses financial assets/liabilities | | Interest rate risk | 1,174 | (3) | | (638) | | | Exchange rate risk | (240) | 7 | | 85 | | | Interest rate and exchange rate risk | 8 | (10) | | (233) | | | Inflation risk | 131 | | | 80 | | | Equity risk | (10) | 10 | — | 0 | | | | | | | | | | Net foreign investments hedges | 136 | — | | — | | | Exchange rate risk | 136 | — | | — | | | | 1,199 | 11 | | (706) | | Annual report 2025771 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | | | | 31 December 2024 | | | | | | Earnings/ (losses) recognised in another cumulative overall result | Ineffective recognised in the income statement | Line of the income statement that includes the ineffectiveness of cash flows | Reclassified amount of reserves to the income statement due to: | | | Cover transaction affecting the income statement | Line of the income statement that includes reclassified items | | Fair value hedges | | 22 | Gains or losses financial assets/liabilities | | | | Interest rate risk | | 30 | — | | | | Exchange rate risk | | (17) | — | | | | Interest rate and exchange rate risk | | 9 | — | | | | | | | | | | | Cash flow hedges | 558 | (6) | — | (1,256) | Interest margin/Gains or losses financial assets/liabilities | | Interest rate risk | 163 | (12) | — | (1,166) | | | Exchange rate risk | 312 | 20 | — | 319 | | | Interest rate and exchange rate risk | 155 | (14) | — | (340) | | | Inflation risk | (70) | — | — | (69) | | | Equity risk | (2) | — | — | 0 | | | | | | | | | | Net foreign investments hedges | 420 | — | — | — | | | Exchange rate risk | 420 | — | | — | | | | 978 | 16 | | (1,256) | | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | | | | 31 December 2023 | | | | | | Earnings/ (losses) recognised in another cumulative overall result | Ineffective coverage recognised in the income statement | Line of the income statement that includes the ineffectiveness of cash flows | Reclassified amount of reserves to the income statement due to: | | | Cover transaction affecting the income statement | Line of the income statement that includes reclassified items | | Fair value hedges | | 59 | Gains or losses financial assets/liabilities | | | | Interest rate risk | | 72 | | | | | Exchange rate risk | | (38) | | | | | Interest rate and exchange rate risk | | 25 | | | | | | | | | | | | Cash flow hedges | 2,592 | 4 | Gains or losses financial assets/liabilities | (2,622) | Interest margin/Gains or losses financial assets/liabilities | | Interest rate risk | 2,179 | 2 | | (1,647) | | | Exchange rate risk | 7 | (1) | | (416) | | | Interest rate and exchange rate risk | 164 | 2 | | (431) | | | Inflation risk | 233 | 1 | | (128) | | | Equity risk | 9 | — | | 0 | | | | | | | | | | Net foreign investments hedges hedges | (1,888) | — | | — | | | Exchange rate risk | (1,888) | — | | — | | | | 704 | 63 | | (2,622) | | Annual report 2025772 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The following table shows the movement in the impact of equity for the year: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Balance at beginning of year | (8,300) | (9,424) | (9,187) | | Cash flow hedges | 1,049 | 558 | 2,592 | | Interest rate risk | 1,155 | 163 | 2,179 | | A) Not designated elements - linked to a time period | (19) | — | — | | Gain or loss in value - recognized in equity | (19) | — | — | | Amounts transferred to income statements | — | — | — | | Other reclassifications | — | — | — | | B) Not designated elements - linked to a transaction | — | — | — | | C) Designated elements | 1,174 | 163 | 2,179 | | Amounts transferred to income statements | 638 | 1,166 | 1,647 | | Gain or loss in value CFE - recognized in equity | 536 | (1,003) | 532 | | Exchange rate risk | (229) | 312 | 7 | | A) Not designated elements - linked to a time period | 11 | — | — | | Gain or loss in value - recognized in equity | 26 | — | — | | Amounts transferred to income statements | (15) | — | — | | Other reclassifications | — | — | — | | B) Not designated elements - linked to a transaction | — | — | — | | C) Designated elements | (240) | 312 | 7 | | Amounts transferred to income statements | (85) | (319) | 416 | | Gain or loss in value CFE - recognized in equity | (155) | 631 | (409) | | Interest rate and exchange rate risk | 8 | 155 | 164 | | A) Not designated elements - linked to a time period | — | — | — | | B) Not designated elements - linked to a transaction | — | — | — | | C) Designated elements | 8 | 155 | 164 | | Amounts transferred to income statements | 233 | 340 | 431 | | Gain or loss in value CFE - recognized in equity | (225) | (185) | 267 | | Inflation risk | 131 | (70) | 233 | | Amounts transferred to income statements | (80) | 69 | 128 | | Gain or loss in value CFE - recognized in equity | 211 | (139) | 105 | | Equity risk | (16) | (2) | 9 | | A) Not designated elements - linked to a time period | (6) | — | — | | Gain or loss in value - recognized in equity | (8) | — | — | | Amounts transferred to income statements | 2 | — | — | | Other reclassifications | — | — | — | | B) Not designated elements - linked to a transaction | — | — | — | | C) Designated elements | (10) | (2) | 9 | | | | | | | --- | --- | --- | --- | | | | | | | Amounts transferred to income statements | — | — | — | | Gain or loss in value CFE - recognized in equity | (10) | (2) | 9 | | Net foreign investments hedges | 136 | 420 | (1,888) | | Exchange rate risk | 136 | 420 | (1,888) | | A) Not designated elements - linked to a time period | — | — | — | | B) Not designated elements - linked to a transaction | — | — | — | | C) Designated elements | 136 | 420 | (1,888) | | Amounts transferred to income statements | — | — | — | | Gain or loss in value CFE - recognized in equity | 136 | 420 | (1,888) | | Fair Value hedges | — | — | — | | Interest rate risk | — | — | — | | A) Not designated elements - linked to a time period | — | — | — | | B) Not designated elements - linked to a transaction | — | — | — | | Exchange rate risk | — | — | — | | A) Not designated elements - linked to a time period | — | — | — | | B) Not designated elements - linked to a transaction | — | — | — | | Interest rate and exchange rate risk | — | — | — | | A) Not designated elements - linked to a time period | — | — | — | | B) Not designated elements - linked to a transaction | — | — | — | | Minorities, taxes and others | (330) | 146 | (941) | | | | | | | Balance at end of year | (7,445) | (8,300) | (9,424) | 37. #### Discontinued operations As a result of the agreement for the sale of part of the Polish business, the effect of these businesses on the consolidated income statement of 2025 has been classified under the line item 'Profit/(loss) after tax from discontinued operations', with the same classification applied for comparative purposes in the consolidated income statement of years 2024 and 2023 (see Note 3). #### a) Breakdown The following is a breakdown of the heading 'Profit/loss after tax from discontinued operations' at 31 December of 2025, 2024 and 2023: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | 2025 | 2024 | 2023 | | Entities held for sale | | | | | Santander Bank Polska (Note 3) | 1,542 | 1,241 | 1,058 | | Profit/loss after tax from discontinued operations | 1,542 | 1,241 | 1,058 | Annual report 2025773 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### b) Gains or losses from entities held for sale The following are the consolidated summary profit and loss accounts for the business held for sale in Poland: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | Condensed consolidated income statements | 2025 | 2024 | 2023 | | Interest margin | 3,006 | 2,881 | 2,611 | | Dividend income | 4 | 4 | 3 | | Investments accounted for using the equity method | 28 | 24 | 22 | | Net commissions | 685 | 634 | 562 | | Net trading income | 74 | 62 | 68 | | Other operating results | (77) | (109) | (94) | | Total income | 3,720 | 3,496 | 3,172 | | Administrative expenses, depreciation and amortisation cost | (1,014) | (885) | (793) | | Impairment of financial assets A | (285) | (508) | (658) | | Other results and provisions | (471) | (423) | (267) | | Profit before taxes | 1,950 | 1,680 | 1,454 | | Tax expense | (408) | (439) | (396) | | Profit of the year | 1,542 | 1,241 | 1,058 | A. Of which EUR 144 million correspond to renegotiations or contractual modifications at 31 December 2025 (EUR 334  and 457 million at 31 December 2024 and 2023, respectively). 38. #### Interest income Interest and similar income in the consolidated income statement comprises the interest accruing in the year on all financial assets with an implicit or explicit return, calculated by applying the effective interest method, irrespective of measurement at fair value; and the rectifications of income as a result of hedge accounting. Interest is recognised gross, without deducting any tax withheld at source. The detail of the main interest and similar income items earned in 2025 , 2024 and 2023 is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Loans and advances, customers | 70,830 | 74,900 | 67,879 | | Debt instruments | 15,890 | 15,431 | 13,955 | | Loans and advances, central banks and credit institutions | 7,599 | 8,195 | 7,229 | | Other interestA | 7,391 | 10,486 | 12,679 | | | 101,710 | 109,012 | 101,742 | A. Mainly include the rectification of income originating from accounting hedges as well as interest on balances in central banks and on demand credit institutions. Most of the interest and similar income was generated by the Group’s financial assets that are measured either at amortised cost or at fair value through other comprehensive income. 39. #### Interest expense Interest expense and similar charges in the consolidated income statement includes the interest accruing in the year on all financial liabilities with an implicit or explicit return, including remuneration in kind, calculated by applying the effective interest method, irrespective of measurement at fair value; the rectifications of cost as a result of hedge accounting; and the interest cost attributable to provisions recorded for pensions. The detail of the main items of interest expense and similar charges accrued in 2025, 2024 and 2023 is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Customer deposits | 31,735 | 35,714 | 32,457 | | Debt securities issued and subordinated liabilities | 15,066 | 14,612 | 12,671 | | Marketable debt securities | 13,580 | 13,255 | 11,661 | | Subordinated liabilities (note 23) | 1,486 | 1,357 | 1,010 | | Central banks and credit institution deposits | 8,151 | 9,381 | 9,360 | | Lease Liabilities | 107 | 122 | 127 | | Provisions for pensions (note 25) | 91 | 105 | 93 | | Other interest expense | 4,212 | 5,291 | 6,384 | | | 59,362 | 65,225 | 61,092 | Most of the interest expense and similar charges was generated by the Group’s financial liabilities that are measured at amortised cost. 40. #### Dividend income Dividend income includes the dividends and payments on equity instruments out of profits generated by investees after the acquisition of the equity interest. The detail of income from dividends as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Dividend income classified as: | | | | | Financial assets held for trading | 556 | 521 | 414 | | Non-trading financial assets mandatorily at fair value through profit or loss | 57 | 71 | 68 | | Financial assets at fair value through other comprehensive income | 102 | 118 | 86 | | | 715 | 710 | 568 | Annual report 2025774 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 41. #### Commission income Commission income comprises the amount of all fees and commissions accruing in favour of the Group in the year, except those that form an integral part of the effective interest rate on financial instruments. The detail of fee and commission income is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Coming from collection and payment services | | | | | Bills | 209 | 220 | 232 | | Demand accounts | 1,359 | 1,411 | 1,372 | | Cards | 4,039 | 4,067 | 4,146 | | Orders | 607 | 657 | 656 | | Cheques and other | 140 | 138 | 128 | | | 6,354 | 6,493 | 6,534 | | Coming from non-banking financial products | | | | | Investment funds | 1,428 | 1,389 | 1,037 | | Pension funds | 238 | 194 | 178 | | Insurance | 2,782 | 2,865 | 2,669 | | | 4,448 | 4,448 | 3,884 | | Coming from Securities services | | | | | Securities underwriting and placement | 602 | 586 | 502 | | Securities trading | 654 | 452 | 331 | | Administration and custody | 402 | 370 | 354 | | Asset management | 385 | 254 | 341 | | | 2,043 | 1,662 | 1,528 | | Other | | | | | Foreign exchange | 848 | 705 | 678 | | Commitments and financial guarantees | 718 | 713 | 621 | | Commitment fees | 504 | 491 | 497 | | Structure Finance | 902 | 709 | 551 | | Corporate Finance | 243 | 213 | 136 | | Loans granted | 259 | 318 | 259 | | Loan Servicing activities | 118 | 130 | 45 | | Other fees and commissions | 950 | 952 | 911 | | | 4,542 | 4,231 | 3,698 | | | 17,387 | 16,834 | 15,644 | 42. #### Commission expense Commission expense shows the amount of all fees and commissions paid or payable by the Group in the year, except those that form an integral part of the effective interest rate on financial instruments. The detail of commission expense is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Cards | 1,744 | 1,816 | 1,858 | | By collection and return of effects | 30 | 30 | 24 | | Financial guarantees and other commitments | 359 | 323 | 282 | | Brokerages and intermediaries | 130 | 181 | 204 | | Sales of insurance and  funds | 456 | 453 | 352 | | Other fees and commissions | 1,692 | 1,655 | 1,429 | | | 4,411 | 4,458 | 4,149 | 43. Gains or losses on financial assets and #### liabilities The following information is presented below regarding the gains or losses recorded for financial assets or liabilities: #### a) Breakdown The detail, by origin, of Gains/losses on financial assets and liabilities: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Gains or losses on financial assets and liabilities not measured at fair value through profit or loss, net | 127 | (117) | 96 | | Financial assets at amortized cost | (89) | (190) | (3) | | Other financial assets and liabilities | 216 | 73 | 99 | | Of which debt instruments | 133 | 50 | 51 | | Gains or losses on financial assets and liabilities held for trading, netA | 1,017 | 1,344 | 2,316 | | Gains or losses on non-trading financial assets and liabilities mandatory at fair value through profit or loss | 1,106 | 495 | 198 | | Gains or losses on financial assets and liabilities measured at fair value through profit or loss, netA | (307) | 691 | (92) | | Gains or losses from hedge accounting, net | 12 | 14 | 69 | | | 1,955 | 2,427 | 2,587 | A. Includes the net result obtained by transactions with debt securities, equity instruments, derivatives and short positions included in this portfolio when the Group jointly manages its risk in these instruments. As explained in note 44, the above breakdown should be analysed in conjunction with the 'Exchange differences, net': | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Exchange differences, net | 407 | (216) | (22) | Annual report 2025775 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### b) Financial assets and liabilities at fair value #### through profit or loss The detail of the amount of the asset balances is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Loans and receivables: | 80,218 | 72,931 | 51,072 | | Central banks | 14,632 | 12,966 | 17,717 | | Credit institutions | 26,380 | 27,722 | 14,520 | | Customers | 39,206 | 32,243 | 18,835 | | Debt instruments | 101,707 | 85,990 | 66,079 | | Equity instruments | 27,845 | 21,277 | 19,125 | | Derivatives | 58,355 | 64,100 | 56,328 | | | 268,125 | 244,298 | 192,604 | Grupo Santander mitigates and reduces this exposure as follows: • With respect to derivatives, the Group has entered into framework agreements with a large number of credit institutions and customers for the netting-off of asset positions and the provision of collateral for non-payment. At 31 December 2025 the exposure to credit risk of the derivatives presented in the balance sheet is not significant because they are subject to netting and collateral agreements (see note 51.d). • Loans and advances to credit institutions and Loans and advances includes reverse repos amounting to EUR 71,129 million at 31 December 2025. Also, mortgage-backed assets totalled EUR 1,597 million. • Debt instruments include EUR 80,908 million of Spanish and foreign government securities. At 31 December 2025 the amount of the change in the year in the fair value of financial assets at fair value through profit or loss attributable to variations in their credit risk (spread) was not material. The detail of the amount of the liability balances is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Deposits | 106,003 | 87,374 | 80,503 | | Central banks | 15,471 | 15,074 | 9,017 | | Credit institutions | 28,482 | 27,909 | 19,597 | | Customer | 62,050 | 44,391 | 51,889 | | Marketable debt securities | 11,686 | 7,554 | 5,371 | | Short positions | 44,015 | 35,830 | 26,174 | | Derivatives | 51,968 | 57,753 | 50,589 | | Other financial liabilities | 22 | — | — | | | 213,694 | 188,511 | 162,637 | At 31 December 2025, the amount of the change in the fair value of financial liabilities at fair value through profit or loss attributable to changes in their credit risk during the year is not material. In relation to liabilities designated at fair value through profit or loss where it has been determined at initial recognition that the credit risk is recorded in accumulated 'Other comprehensive income' (see 'Statement of recognised income and expense') the amount that the Group would be contractually obliged to pay on maturity of these liabilities at 31 December 2025 is EUR 1,281 million higher than their carrying amount (EUR 1,851 million higher at 31 December 2024 and EUR 866 million higher at 31 December 2023, no significant impact on results as its fair value is covered by hedging operations. Within Deposits, there are repurchase agreements amounting to EUR 75,562 million at 31 December 2025. 44. #### Exchange differences, net Exchange differences shows basically the gains or losses on currency dealings, the differences that arise on translations of monetary items in foreign currencies to the functional currency. Grupo Santander manages the currencies to which it is exposed together with the arrangement of derivative instruments and, accordingly, the changes in this line item should be analysed together with those recognised under 'Gains/losses on financial assets and liabilities' (see note 43). 45. #### Other operating income and expenses Other operating income and Other operating expenses in the consolidated income statements include: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Other operating income | 1,583 | 846 | 1,137 | | Non- financial services | 738 | 654 | 752 | | Other operating income | 845 | 192 | 385 | | Other operating expense | (2,070) | (2,258) | (2,766) | | Non-financial services | (650) | (498) | (674) | | Other operating expense: | (1,420) | (1,760) | (2,092) | | Of which, credit institutions deposit guarantee fund and single resolution fund | (478) | (481) | (1,083) | | | (487) | (1,412) | (1,629) | In the 2025 and 2024 financial years, it was decided that there will not be contribution in Spain to the Single Resolution Fund, as well as a decrease in the contribution to the Deposit Guarantee Fund, by the Single Resolution Board (SRB) and the Deposit Guarantee Fund Management Committee, respectively. The amount of the Group recognises in relation to income from sub-leases of rights of use is not material. Annual report 2025776 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 46. #### Staff costs #### a) Breakdown The detail of Staff costs is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Wages and salaries | 10,328 | 10,541 | 10,018 | | Social Security costs | 1,680 | 1,644 | 1,576 | | Additions to provisions for defined benefit pension plans (note 25) | 41 | 45 | 42 | | Contributions to defined contribution pension funds | 332 | 354 | 307 | | Other Staff costs | 1,252 | 1,241 | 1,332 | | | 13,633 | 13,825 | 13,275 | #### b) Headcount The number of employees of Grupo Santander at 31 December 2025, 2024 and 2023 is 198,403 , 206,753 and 212,764 , respectively. For the years 2025, 2024 and 2023 the average number of employees of the Group is 203,572 , 209,371 and 211,135 , respectively, being the average number of employees of Banco Santander, S.A. 23,207 , 23,839 and 24,061 , of which 17 , 15 and 16 are executive directors and Senior management, respectively. The functional breakdown (final employment), by gender, at 31 December  2025 is as follows: | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | Functional breakdown by gender | | | | | | | | | | | | | | | | | Senior executivesA | | | | | Other executivesB | | | | | Other employees | | | | | | Men | Women | Others | Not declared | | Men | Women | Others | Not declared | | Men | Women | Others | Not declared | | Europe | 918 | 426 | — | — | | 8,778 | 5,052 | — | 10 | | 31,404 | 37,094 | 3 | 39 | | North America | 181 | 64 | — | — | | 3,859 | 2,630 | — | 4 | | 14,555 | 18,517 | 2 | 1 | | South America | 284 | 142 | — | — | | 4,678 | 3,398 | — | 1 | | 30,472 | 35,890 | — | 1 | | | 1,383 | 632 | — | — | | 17,315 | 11,080 | — | 15 | | 76,431 | 91,501 | 5 | 41 | A. Senior Executives includes employees with job profiles under the following harmonized management levels: Senior Executive VP. Executive VP and VP. B. Other Executives includes Directors, Mangers, Experts and Branch Managers. Note: This includes employees related to the Group's business held for sale in Poland. The labour relations between employees and the various Group companies are governed by the related collective agreements or similar regulations. The number of Group employees with disabilities at 31 December 2025, 2024 and 2023, was 4,854, 4,828 and 4,701, respectively. Likewise, the average number of employees of Banco Santander, S.A. with disabilities, equal to or greater than 33%, during 2025 was 419 (435 and 428 employees during 2024 and 2023). At the end of fiscal year 2025, there were 413 employees (432 and 436 employees at 31 December, 2024 and 2023 , respectively). An employee with disabilities is considered to be a person who is recognised by the State or the company in each jurisdiction where the Group operates and that entitles them to receive direct monetary assistance, or other types of aid such as, for example, reduction of their taxes. In the case of Spain, employees with disabilities have been considered to be those with a degree of disabilities greater than or equal to 33%. #### c) Share-based payments The main share-based payments granted by the Group in force at 31 December, 2025, 2024 and 2023 are described below. i. Bank The variable remuneration policy for the Bank’s executive directors and certain executive personnel of the Bank and of other Group companies includes Bank share-based payments, the implementation of which requires, in conformity with the law and the Bank’s Bylaws, specific resolutions to be adopted by the general meeting. Were it necessary or advisable for legal, regulatory or other similar reasons, the delivery mechanisms described below may be adapted in specific cases without altering the maximum number of shares linked to the plan or the essential conditions to which the delivery thereof is subject. Annual report 2025777 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | These adaptations may involve replacing the delivery of shares with the delivery of cash amounts of an equal value. The plans that include share-based payments are as follows: (i) Deferred and Conditional Variable Remuneration Plan; (ii) Deferred Multiyear Objectives Variable Remuneration Plan; (iii) Digital Transformation Award, (iv) Digital Transformation Award 2022, Digital Transformation Award 2023 and (vi) PagoNxt incentive Plan 2024 and 2025 for Santander executives. The characteristics of the plans are set forth below: | | | | | | --- | --- | --- | --- | | | | | | | Deferred variable remuneration systems | Description and plan beneficiaries | Conditions | Calculation Base | | (i) Deferred and conditional variable remuneration plan (2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023, 2024 and 2025) | The purpose of these cycles is to defer a portion of the variable remuneration of the beneficiaries over a period of three years for the sixth cycles, over three or five years for the fifth, seventh, eighth, ninth, tenth and eleventh cycles, and over four or five years for the twelfth cycle, for it to be paid, where appropriate, in cash and in Santander shares. The other portion of the variable remuneration is also to be paid in cash and Santander shares, upon commencement of the cycles, in accordance with the rules set forth below. Beneficiaries: • Executive directors and certain executives (including senior management) and employees who assume risk, who perform control functions or receive an overall remuneration which puts them on the same remuneration level as executives and employees who assume risks (fifth cycle). • In the case of the sixth, seventh, eighth, ninth, tenth, eleventh twelfth, thirteenth, fourteenth and fifteenth cycle the beneficiaries are Material Risk Takers (Identified staff) that are not beneficiaries of the Deferred Multiyear Objectives Variable Remuneration Plan. | For the fifth and sixth cycles (2015 to 2016), the accrual of the deferred compensation is conditioned, in addition to the requirement that the beneficiary remains in the Group's employ, with the exceptions included in the plan regulations on none of the following circumstances existing during the period prior to each delivery, pursuant to the provisions set forth in each case in the plan regulations: • Poor financial performance of the Group. • Breach by the beneficiary of internal regulations, including, in particular, those relating to risks. • Material restatement of the Group's consolidated financial statements, except when it is required pursuant to a change in accounting standards. • Significant changes in the Group’s economic capital or risk profile In the case of the seventh, eighth, ninth, tenth, eleventh, twelfth, thirteenth, fourteenth and fifteenth cycles, the accrual of deferred compensation is conditioned, in addition to the permanence of the beneficiary in the Group, with the exceptions contained in the plan's regulations, to non-occurrence of a poor performance of the entity as a whole or of a specific division or area of the entity or of the exposures generated by the personnel: i. significant failures in risk management by the entity , or by a business unit or risk control unit. ii. the increase suffered by the entity or by a business unit of its capital needs, not foreseen at the time of generation of the exposures. iii. Regulatory sanctions or judicial sentences for events that could be attributable to the unit or the personnel responsible for those. Also, the breach of internal codes of conduct of the entity. iv. Irregular behaviours, whether individual or collective, considering in particular the negative effects derived from the marketing of inappropriate products and the responsibilities of the persons or bodies that made those decisions. | Fifth cycle (2015): • Executive directors and members of the Identified Staff with total variable remuneration higher than 2.6 million euros: 40% paid immediately and 60% deferred over 5 years deferral period. • Division managers, country heads (of countries which represent at least 1% of Group's economic capital), other executives of the Group with a similar profile and members of the Identified Staff  with total variable remuneration between 1.7 million euros (1.8 million in fourth cycle) and 2.6 million euros: 50% paid immediately and 50% deferred over 5 years (fifth cycle) • Other beneficiaries: 60% paid immediately and 40% deferred over 3 years. Sixth cycle (2016): • 60% of bonus will be paid immediately and 40% deferred over a three year period. Seventh, eighth, ninth, tenth and eleventh cycle (2017, 2018, 2019, 2020 and 2021): • Beneficiaries of these plans with target total variable remuneration higher or equal to 2.7 million euros: 40%  paid immediately and 60% deferred over 5 years • Beneficiaries of these plans with target total variable remuneration between 1.7 million euros and 2.7 million euros: 50% paid immediately and 50%paid over 5 years • Other beneficiaries of these plans: 60% paid immediately and 40% deferred over 3 years. Twelfth (2022), thirteenth (2023),fourteenth (2024) and fifteenth (2025) cycle: • Beneficiaries of these plans with target total variable remuneration higher or equal to 2.7 million euros: 40% paid immediately and 60% deferred over 5 years • Beneficiaries of these plans with target total variable remuneration between 1.7 million euros and 2.7 million euros: 50% paid immediately and 50% paid over 5 years • Other beneficiaries of these plans: 60% paid immediately and 40% deferred over 4 years . T | Annual report 2025778 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | --- | --- | --- | --- | | | | | | | Deferred variable remuneration systems | Description and plan beneficiaries | Conditions | Calculation Base | | (ii)Deferred Multiyear Objectives Variable Remuneration Plan (2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023, 2024 and 2025) | The aim is simplifying the remuneration structure, improving the ex ante risk adjustment and increasing the impact of the long- term objectives on the Group’s most relevant roles. The purpose of these cycles is to defer a portion of the variable remuneration of the beneficiaries over a period of three or five years (four or five years for the seventh cycle) for it to be paid, where appropriate, in cash and in Santander shares; the other portion of the variable remuneration is also to be paid in cash and Santander shares (regarding the instruments part, executive directors in the seventh cycle have the opportunity to choose all in share options or half in share options and half in shares), upon commencement of the cycles, in accordance with the rules set forth below. The accrual of the last third of the deferral (in the case of 3 years deferral), the last 2 fourths (in the case of 4 years deferral) and the last three fifths (in the case of 5 years deferral) is also subject to long-term objectives. Beneficiaries Executive directors, senior management and certain executives of the Group’s first lines of responsibility. | In 2016 the accrual is conditioned, in addition to the permanence of the beneficiary in the Group, with the exceptions contained in the plan’s regulations, to non- occurrence of the following circumstances during the period prior to each of the deliveries in the terms set forth in each case in the plan’s regulations: i. Poor performance of the Group. ii. Breach by the beneficiary of the internal regulations, including in particular that relating to risks. iii. Material restatement of the Group’s consolidated financial statements, except when appropriate under a change in accounting regulations. iv. Significant changes in the Group’s economic capital or risk profile. In 2017, 2018, 2019, 2020 and 2021 the accrual is conditioned, in addition to the beneficiary' permanence in the Group, with the exceptions contained in the plan’s regulations, to the non-occurrence of poor financial performance from the entity as a whole or of a specific division or area thereof or of the exposures generated by the personnel, taking into account the following factors: v. Significant failures in risk management committed by the entity, or by a business unit or risk control unit. vi. the increase suffered by the entity or by a business unit of its capital needs, not foreseen at the time of generation of the exposures. vii. Regulatory sanctions or court rulings for events that could be attributable to the unit or the personnel responsible for those. Also, the breach of internal codes of conduct of the entity. viii. Irregular behaviours, whether individual or collective, considering in particular negative effects derived from the marketing of inappropriate products and responsibilities of persons or bodies that made those decisions. Paid half in cash and half in shares. In the seventh cycle, and only for executive directors: half in cash and 25% in share options and 25% in shares (unless the director chooses to receive options only). The maximum number of shares to be delivered is calculated by taking into account the weighted average daily volume of weighted average prices for the fifteen trading sessions prior to the previous Friday (excluding) on the date on which the board decides the bonus for the Executive directors of the Bank. In the eighth cycle, and for all Identified Staff: half in cash and 25% in shares and 25% in share options, or half in cash and half in shares, according to each executive´s choice. In the ninth and tenth cycle, half in cash and  half in shares. | First cycle (2016): • Executive directors and members of the Identified Staff with total variable remuneration higher than or equal to 2.7 million euros: 40% paid immediately and 60% deferred over a 5  year period. • Senior managers, country heads of countries representing at least 1% of the Group´s capital and other members of the identified staff whose total variable remuneration is between 1.7 million and 2.7 million euros: 50% paid immediately and 50% deferred over a 5 year period. • Other beneficiaries: 60% paid immediately and 40% deferred over a 3 year period. The second, third, fourth, fifth and sixth cycles (2017, 2018, 2019,2020 and 2021 respectively) are under the aforementioned deferral rules, except that the  variable remuneration considered is the target for each executive and not the actual award. In 2016 the metrics for the deferred portion subject to long-term objectives (last third or last three fifths, respectively, for the cases of three years and five years deferrals) are: • Earnings per share (EPS) growth in 2018 over 2015. • Relative Total Shareholder Return (TSR) in the 2016-2018 period measured against a group of credit institutions. • Compliance with the fully-loaded common equity tier 1 ('CET1') ratio target for financial year 2018. • Compliance with Grupo Santander’s underlying return on risk-weighted assets ('RoRWA') growth target for financial year 2018 compared to financial year 2015. In the second, third, fourth, fifth and sixth cycle (2017, 2018, 2019, 2020 and 2021) the metrics for the deferred portion subject to long-term objectives (last third or last three fifths, respectively, for the cases of three years and five years deferrals) are: • EPS growth in 2019, 2020, 2021, 2022 and 2023 (over 2016, 2017, 2018, 2019 and 2020, for each respective cycle) • Relative Total Shareholder Return (TSR) measured against a group of 17 credit institutions (second and third cycles) in the periods 2017-2019 and 2018-2019, respectively, and against a group of 9 entities (fourth, fifth and sixth cycle) for the 2019-2021, 2020-2022 and 2010-2023  period. • Compliance with the fully-loaded common equity tier 1 ('CET1') ratio target for financial years 2019, 2020, 2021,2022 and 2023, respectively. In the seventh (2022), eighth cycle (2023), ninth (2025) and tenth cycle (2025), the metrics for the deferred portion subject to long-term objectives (two last fourths and last three fifths, for the cases of four years and five years deferrals) are: • Banco Santander's consolidated Return on tangible equity (RoTE) target in 2024 (7th cycle),  2025 (8th cycle), 2026 (9th cycle) and 2027 (10th cycle). • Relative Total Shareholder Return (TSR) measured against a group of 9 credit institutions for the period 2022-2024 (7th cycle), 2023-2025 (8th cycle), 2024-2026 (9th cycle) and 2025-2027 (10th cycle). • Progress level  in the  public targets of our Sustainability agenda. | Annual report 2025779 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | --- | --- | --- | --- | | | | | | | Deferred variable remuneration systems | Description and plan beneficiaries | Conditions | Calculation Base | | (iii) Digital Transformation Award (2019, 2020 and 2021) | The 2019, 2020 and 2021 Digital Transformation Incentive (the 'Digital Incentive') is a variable remuneration system that includes the delivery of Santander shares and share options. The aim of the Digital Incentive is to attract and retain the critical skill sets to support and accelerate the digital transformation of the Group. By means of this program, the Group offers a remuneration element which is competitive with the remuneration systems offered  by other market operators who also compete for digital talent. The number of beneficiaries is limited to a maximum of 250 employees and the total amount of the incentive is limited to 30 million euros. | The funding of this incentive is subject to meeting important milestones that are aligned with the Group´s digital roadmap and have been approved by the board of directors, taking into account the digitalization strategy of the Group, with the aim of becoming the best open, responsible global financial services platform. Performance of 2019 incentive was measured based on achievement of the following milestones: (i) Launch of a Global Trade Services (GTS) platform; (ii) launch of a Global Merchant Services (GMS) platform; (iii) migration of our fully digital bank, OpenBank, to a 'next generation' platform and launch in 3 markets; (iv) extension of SuperDigital in Brazil to at least one other country; (v) and launch of our international payments app based on blockchain Pago FX to non-Santander customers. The milestones for the 2020 Digital Transformation Award were: (i) rolling out the global merchant services (GMS) platform in 3 new geographies, enhancing the platform functionality and achieving volume targets for transactions and participating merchants; (ii) doing the commercial rollout of the global trade services (GTS) platform in 8 new geographies, enhancing platform functionality, and achieving  volume targets for on- boarded clients and monthly active users; (iii) launching OpenBank in a new market and migrating the retail banking infrastructure to 'new-mode' bank; (iv) launch the global platform SuperDigital in at least 4 countries, driving target active user growth; (v) deploying machine learning across pre-defined markets for 4 priority use cases, rolling out Conversion Rate Optimization (Digital marketing) for at least 40 sales programs, delivering profit targets, and driving reduction of agent handled calls in contact centers; (vi) successfully implementing initiatives related to on- board and identity services, common API (application programming interface) layer, payment hubs, mobile app for SMEs and virtual assistant services; and (vii) launching the PagoFX global platform in at least 4 countries. The milestones for 2021 were: (i)in relation to Pago Nxt Consumer payment platform: implementation of Superdigital platform in seven countries, acquisition of over 1.5 million active customer base and accelerating growth through B2B (business to business) and B2B2C (business to business to customer) partnerships, acquiring more than 50% of the new customers through these channels, which are more cost-effective; (ii)in relation to Digital Consumer Bank: launching online API for checkout lending in the European Union and completion of controllable items for Openbank launch in USA; (iii)in relation to One Santander strategy: implementation in Europe of One Common Mobile Experience and, specifically, implementation of Europe ONE app for individual customers in at least three of the four countries by December 2021; and be among the three-top rated entities in terms of Mobile NetPromoter Score (Mobile NPS) in at least two of the four countries by December 2021; (iv) In relation to cloud adoption: host 75% of migratable virtual machines on cloud technology (either public cloud or OHE) by December 2021. For these purposes, mainframes, physical servers and servers with non-x86 operating systems will be considered non-migratable. | The Digital Incentive is structured 50% in Santander shares and 50% in options over Santander shares, taking into account the fair value of the option at the moment in which they are granted. For Material Risk Takers subject to five years deferrals, the Digital Incentive (shares and options over shares) shall be delivered in thirds, on the third, fourth and fifth anniversary from their granting. For Material Risk Takers subject to three years deferrals and employees not subject to deferrals, delivery shall be done on the third anniversary from their granting. Any delivery of shares, either directly or via exercise of options overs shares, will be subject generally to the Group’s general malus & clawback provisions as described in the Group’s remuneration policy and to the continuity of the beneficiary within the Grupo Santander. In this regard, the board may define specific rules for non-Identified Staff. Vested share options can be exercised until maturity, with all options lapsing after ten years (for granting the 2019 incentive) and eight years (for granting the 2020 and 2021 incentive). The total achievement for 2021 Digital Incentive was 77.5% (85% en 2020 and 83% en 2019). | Annual report 2025780 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | --- | --- | --- | --- | | | | | | | Deferred variable remuneration systems | Description and plan beneficiaries | Conditions | Calculation base | | (iv) Digital Transformation Award (2022) | The board of directors approved the 2022 Digital Transformation Incentive. It is a variable remuneration scheme splits in two different blocks: • The first one, with the same mechanism than previous years, that delivers Santander shares and share options if the group hits major milestones on its digital roadmap. This is aimed at a group of up to 250 (is limited to 30 million euros)employees whose functions are deemed essential to Santander’s growth. • And the second one, which delivers PagoNxt, S.L. RSUs and premium prices options (PPOs), and is aimed at up to 50 employees (and limited to 15 million euros) whose roles are considered key to PagoNxt’s success. The aim of the Digital Incentive is to attract and retain the critical skill sets to support and accelerate the digital transformation of the Group. By means of this program, the Group offers a remuneration element which is competitive with the remuneration systems offered  by other market operators who also compete for digital talent. | Performance of the first block of the  incentive shall be measured based on achievement of the following milestones: i. Edelweiss: Our Santander future retail architecture EDELWEISS will mean moving from our current Core centric banking architecture towards a Customer and Data-Centric Core supported by lean Record Processing engines. ii. Simplification: Speed up the simplification of our technology platform and business model by Reducing the total number of applications in production and reducing number of products in the regions. iii. Agile: Agile ways of working enable a better and faster reaction to customers’ needs and is based on a value-driven delivery that increases efficiency by reducing time-to-market and development costs, and increasing quality. People working in Agile are more collaborative, engaged, empowered and creative. iv. In Digital Consumer Bank: a) To create the BNPL platform connected to at least one merchant in Netherlands and Germany, and to make sure the platform is ready to connect in Spain. b) To support the definition of Openbank US’s IT digital strategy and achieve 2022 milestones in it. c) To have the new leasing platform connected to dealers in Italy. d) To expand the Wabi B2B online business to Germany. To execute the first B2B deal with an Original Equipment Manufacturer or mobility player in at least one country. To expand coches.com business and platform to Portugal. And in regard to the second block of digital incentive: the consolidation of PagoNxt Core Perimeter. | The first block of thee Digital Incentive is structured 50% in Santander shares and 50% in options over Santander shares, taking into account the fair value of the option at the moment in which they are granted. For Material Risk Takers subject to five years deferrals, the Digital Incentive (shares and options over shares) shall be delivered in thirds, on the third, fourth and fifth anniversary from their granting. For Material Risk Takers subject to three years deferrals and employees not subject to deferrals, delivery shall be done on the third anniversary from their granting. Any delivery of shares, either directly or via exercise of options overs shares, will be subject generally to the Group’s general malus & clawback provisions as described in the Group’s remuneration policy and to the continuity of the beneficiary within the Grupo Santander. In this regard, the board may define specific rules for non-Identified Staff. Vested share options can be exercised until maturity, with all options lapsing after ten years . The total achievement for 2022 Digital Incentive was 96.5% . The second block of Digital Incentive is structures in restricted stock units (RSUs) and premium priced Options (PPOs) of PagoNxt S.L. in a percentage determined by the internal category of the beneficiary. The total achievement for 2022 was 100%. | | | | | | | --- | --- | --- | --- | | | | | | | Deferred variable remuneration systems | Description and plan beneficiaries | Conditions | Calculation base | | (v) Digital Transformation Award (2023) | The board of directors approved the 2023 Digital Transformation Incentive. It is a variable remuneration scheme  which delivers PagoNxt, S.L. RSUs and premium prices options (PPOs), and is aimed at up to 50 employees (and limited to 15 million euros) whose roles are considered key to PagoNxt’s success. With this program, the Group offers a remuneration element which is competitive with the remuneration systems offered  by other market operators who also compete for digital talent. | And the performance conditions were focus on key digital projects related with PagoNxt's main businesses (Trade, Merchant and Payments) in its core geographies. | This incentive  is structures in restricted stock units (RSUs) and premium priced Options (PPOs) of PagoNxt S.L. in a percentage determined by the internal category of the beneficiary. The average achievement for 2023 was 88%. | | | | | | | --- | --- | --- | --- | | | | | | | Deferred variable remuneration systems | Description and plan beneficiaries | Conditions | Calculation base | | (vi) PagoNxt incentive Plan 2024 and 2025 for Santander executives) | The board of directors approved the PagoNxt incentive Plan 2024 and 2025 Incentive. It is a variable remuneration scheme  which delivers PagoNxt, S.L. RSUs, and is aimed at approximately  to 50 - 60 employees whose roles are considered key to PagoNxt’s success. With this program, the Group offers a remuneration element which is competitive with the remuneration systems offered  by other market operators who also compete for digital talent. | And the performance conditions were focus on key digital projects related with PagoNxt's main businesses (Trade, Merchant and Payments) in its core geographies. | This incentive  is structures in restricted stock units (RSUs) of PagoNxt S.L. in a percentage determined by the internal category of the beneficiary. The average achievement for 2024 was 77% and 85% in 2025. | Annual report 2025781 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | ii. Santander UK plc The long-term incentive plans on shares of the Bank granted by management of Santander UK plc to its employees are as follows: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Number of shares (in thousand) | Exercise price in pounds sterlingA | Year granted | Employee group | Number of personsB | Date of commencement of exercise period | Date of expiry of exercise period | | Plans outstanding at 01/01/2023 | 29,988 | | | | | | | | Options granted (sharesave) | 7,175 | 2.78 | 2023 | Employees | 4,752 | 01/11/23 | 01/11/26 | | | | | | | | 01/11/23 | 01/11/28 | | Options exercised | (5,980) | 1.7 | | | | | | | Options cancelled (net) or not exercised | (4,044) | 2.53 | | | | | | | Plans outstanding at 31/12/2023 | 27,139 | | | | | | | | Options granted (sharesave) | 4,991 | 3.36 | 2024 | Employees | 4,107 | 01/11/24 | 01/11/27 | | | | | | | | 01/11/24 | 01/11/29 | | Options exercised | (4,004) | 2.29 | | | | | | | Options cancelled (net) or not exercised | (2,437) | 2.37 | | | | | | | Plans outstanding at 31/12/2024 | 25,689 | | | | | | | | Options granted (sharesave) | 3,324 | 6.35 | 2025 | Employees | 4,637 | 01/11/25 | 01/11/28 | | | | | | | | | | | Options exercised | (9,966) | 1.9 | | | | | | | Options cancelled (net) or not exercised | (1,554) | 2.88 | | | | | | | Plans outstanding at 31/12/2025 | 17,493 | | | | | | | A. At  31 December, 2025, 2024 and 2023, the euro/pound sterling exchange rate was 1.15, 1.21 and 1.15 , respectively. B. Number of accounts/contracts. A single employee may have more than one account/contract. In 2008 the Group launched a voluntary savings scheme for Santander UK employees (Sharesave Scheme) whereby employees who join the scheme see deducted between GBP 5 and GBP 500 from their net monthly pay over a period of three or five years. At the end of the chosen period, the employee may choose between collecting the amount contributed, the interest accrued and a bonus (tax-exempt in the United Kingdom) or exercising options on shares of the Bank in an amount equal to the sum of such three amounts at a fixed price. The exercise price will be the result of reducing by up to 20% the average purchase and sale prices of the Bank shares in the three trading sessions prior to the approval of the scheme by the UK tax authorities (HMRC). This approval must be received within 21 to 41 days following the publication of the Group’s results for the first half of the year. This scheme was approved by the board of directors, at the proposal of the appointments and remuneration committee, and, since it involved the delivery of Bank shares, its application was authorized by the Annual General Meeting held on June 21, 2008. Also, the scheme was authorized by the UK tax authorities (HMRC) and commenced in September 2008. In subsequent years, at the Annual General Meetings held on June 19, 2009, June 11, 2010, June 17, 2011, March 30, 2012, March 22, 2013, March 28, 2014, March 27, 2015, March 18, 2016, April 7, 2017, March 23, 2018, April 12, 2019, April 3, 2020 and March 26, 2021, respectively, the shareholders approved the application of schemes previously approved by the board and with similar features to the scheme approved in 2008. iii. Fair value The fair value of the performance share plans was calculated as follows: a) Deferred variable compensation plan linked to multi-year objectives 2023, 2024 and 2025: The Group calculates at the grant date the fair value of the plan based on the valuation report of an independent expert, Willis Towers Watson. According to the design of the plan for 2023, 2024 and 2025 and the levels of achievement of similar plans in comparable entities, it has been considered that the fair value is 70%. b) Santander UK sharesave plans: The fair value of each option at the date of grant is estimated using an analytical model that also reflects the correlation between EUR and GBP. This model uses assumptions on the share price, the EUR/ GBP FX rate, the EUR/GBP risk-free interest rate, dividend yields, the expected volatilities of both the underlying shares and EUR/ GBP for the expected lives of options granted. The weighted average grant-date fair value of options granted during the year was GBP 0.44 (GBP 0.23 and GBP 0.33 reported in 2024 and 2023, respectively). Annual report 2025782 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 47. #### Other general administrative #### expenses #### a) Breakdown The detail of Other general administrative expenses is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Technology and systems | 2,298 | 2,539 | 2,389 | | Property, fixtures and supplies (note 2.k) | 803 | 797 | 774 | | Technical reports | 712 | 724 | 796 | | Advertising | 517 | 512 | 574 | | Taxes other than income tax | 543 | 554 | 568 | | Communications | 367 | 387 | 400 | | Surveillance and cash courier services | 314 | 337 | 325 | | Per diems and travel expenses | 250 | 232 | 213 | | Insurance premiums | 86 | 95 | 88 | | Other administrative expenses | 2,010 | 1,968 | 2,144 | | | 7,900 | 8,145 | 8,271 | The payments associated with short-term leases (leases less than or equal to 12 months) and leases of low-value assets, that the Group recognises as an expense in the income statement is not material. #### b) Technical reports and other Technical reports include the fees from the various Group companies (detailed in the accompanying appendices) for the services provided by their respective auditors, with the following detail: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Audit | 118.5 | 122.3 | 117.5 | | Audit-related services | 15.0 | 13.6 | 8.6 | | Tax services | 0.1 | 0.9 | 1.6 | | All other | 7.1 | 7.4 | 5.9 | | Total | 140.7 | 144.2 | 133.6 | Additionally, the firm BDO has performed audit and audit-related services totaling EUR 1.9 million. The audit services and main non-audit services included for each item in the above breakdown are detailed as follows: • Audit services: audit of the individual and consolidated financial statements of Banco Santander and its subsidiaries (of which PwC or another network firm is the external auditor); audit of the interim consolidated financial statements of Banco Santander; integrated audits prepared in order to file the Form 20-F  with the SEC  and the internal control audits (SOx) for required Group's entities; limited reviews of financial statements; and regulatory reports required to the external auditors regarding several  Grupo Santander entities. • Audit-related services: issuance of comfort letters, verification services of financial and non-financial information required by regulators, and other reviews of documentation to be submitted to domestic or foreign authorities that, due to their nature, the external auditor typically provides. • Tax services: tax compliance and advisory services provided to Group companies outside Spain, which have no direct effect on the audited financial statements and are permitted in accordance with the applicable independence regulations. • Other services: agreed-upon procedure reports, assurance reports and special reports performed under the accepted profession's standards; as well as other reports required by the regulators. The 'Audit' heading includes the fees for the year's audit, regardless of the date the audit was completed. Any subsequent adjustments, which are not significant, are shown in this note for each year for comparison purposes. The fees corresponding to the rest of the services are shown by reference to when the audit committee approved them. The services commissioned from the Group's auditors meet the independence requirements under applicable European and Spanish law, the SEC rules and the Public Company Accounting Oversight Board (PCAOB), applicable to the Group, and did not involve in any case the performance of any work that is incompatible with the auditor's role. Lastly, the Group commissioned services from audit firms other than PwC amounting to EUR 155.9 million in 2025 (EUR 206.2 million and EUR 174.1 million in 2024 and 2023, respectively). #### c) Number of branches The number of offices according to their geographical location at 31 December 2025, 2024 and 2023 is as follows: | | | | | | --- | --- | --- | --- | | | | | | | Number of branches | | | | | | Group | | | | 2025 | 2024 | 2023 | | Spain A | 1,674 | 1,877 | 1,924 | | Group | 5,450 | 6,209 | 6,594 | | | 7,124 | 8,086 | 8,518 | A. Includes branches in Spain of the Digital Consumer Bank business. Note: Branches corresponding to the Group's business held for sale in Poland are included. Note: The figures for 2025 and 2024 include CartaSur points of sale and banking service points (PAB) in Argentina and exclude operational points that do not provide customer service in Colombia. Annual report 2025783 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 48. #### Gains or losses on non financial assets, net The detail of Gains/ (losses) on disposal of assets not classified as non-current assets held for sale is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Gains | | | | | Tangible and intangible assets | 65 | 48 | 53 | | Investments | 17 | 360 | 285 | | | 82 | 408 | 338 | | Losses | | | | | Tangible and intangible assets | (41) | (36) | (26) | | Investments | (41) | (4) | — | | | (82) | (40) | (26) | | | — | 368 | 312 | 49. #### Gains or losses on non-current assets held for sale not classified as discontinued operations The detail of Gains/(losses) on non-current assets held for sale not classified as discontinued operations is as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | Net balance | 2025 | 2024 | 2023 | | Tangible assets | (6) | (24) | (20) | | Impairment (Note 12) | (72) | (92) | (51) | | Gain (loss) on sale (Note 12) | 66 | 68 | 31 | | Other gains and other losses | 232 | (3) | — | | Caceis (Note 3) | 231 | — | — | | | 226 | (27) | (20) | 50. #### Fair value of financial instruments #### a) Details The following table summarises the fair values, at the end of each of the years indicated, of the financial assets and liabilities listed below, classified according to the different valuation methodologies used by the Group to determine their fair value: | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | EUR million | | | | | | | | | | | | 2025 | | | 2024 | | | 2023 | | | | | Published price quotations in active markets (level 1) | Internal Models (level 2 and 3) | Total | Published price quotations in active markets (level 1) | Internal Models (level 2 and 3) | Total | Published price quotations in active markets (level 1) | Internal Models (level 2 and 3) | Total | | Financial assets held for trading | 106,560 | 145,758 | 252,318 | 88,147 | 142,106 | 230,253 | 67,842 | 109,079 | 176,921 | | Non-trading financial assets mandatorily at fair value through profit or loss | 2,407 | 5,354 | 7,761 | 2,037 | 4,093 | 6,130 | 1,765 | 4,145 | 5,910 | | Financial assets designated at fair value through profit or loss | 2,860 | 5,186 | 8,046 | 2,744 | 5,171 | 7,915 | 2,746 | 7,027 | 9,773 | | Financial assets at fair value through other comprehensive income | 52,589 | 22,023 | 74,612 | 67,680 | 22,218 | 89,898 | 64,631 | 18,677 | 83,308 | | Hedging derivatives (assets) | — | 3,931 | 3,931 | — | 5,672 | 5,672 | — | 5,297 | 5,297 | | Financial liabilities held for trading | 37,192 | 134,354 | 171,546 | 29,974 | 122,177 | 152,151 | 20,298 | 101,972 | 122,270 | | Financial liabilities designated at fair value through profit or loss | — | 42,148 | 42,148 | — | 36,360 | 36,360 | 25 | 40,342 | 40,367 | | Hedging derivatives (liabilities) | — | 4,248 | 4,248 | — | 4,752 | 4,752 | — | 7,656 | 7,656 | | Liabilities under insurance contracts | — | 18,737 | 18,737 | — | 17,829 | 17,829 | — | 17,799 | 17,799 | Grupo Santander has developed a formal process for the systematic valuation and management of financial instruments, which has been implemented worldwide across all the Group’s units. The governance scheme for this process distributes responsibilities between two independent divisions: Treasury (development, marketing and daily management of financial products) and Risk (on a periodic basis, validation of pricing models and daily risk certification of market data, computation of risk metrics, new transaction approval policies, management control of market risk and implementation of fair value adjustment policies). The approval of new products follows a sequence of steps (request, development, validation, integration in corporate systems and quality assurance) before the product is brought into production. This process ensures that pricing systems have been properly reviewed and are stable before they are used. The following subsections set forth the most important products and families of derivatives, and the related valuation techniques and inputs, by asset class: Annual report 2025784 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Interest rate and inflation The fixed income asset class includes basic instruments such as interest rate forwards, interest rate swaps and cross currency swaps, which are valued using the net present value of the estimated future cash flows discounted taking into account basis (swap and cross currency spreads) determined on the basis of the payment frequency and currency of each leg of the derivative. Vanilla options, including caps, floors and swaptions, are priced using the Black-Scholes model, which is one of the benchmark industry models. More exotic derivatives are priced using more complex models which are generally accepted as standard across institutions. These pricing models are fed with observable market data such as deposit interest rates, futures rates, cross currency swap and constant maturity swap rates, and basis spreads, on the basis of which different yield curves, depending on the payment frequency, and discounting curves are calculated for each currency. In the case of options, implied volatilities are also used as model inputs. These volatilities are observable in the market for cap and floor options and swaptions, and interpolation and extrapolation of volatilities from the quoted ranges are carried out using generally accepted industry models. The pricing of more exotic derivatives may require the use of non-observable data or parameters, such as correlation (among interest rates and cross-asset), mean reversion rates and prepayment rates, which are usually defined from historical data or through calibration. Inflation-related assets include zero-coupon or year-on-year inflation-linked bonds and swaps, valued with the present value method using forward estimation and discounting. Derivatives on inflation indices are priced using standard or more complex internal models. Valuation inputs of these models consider inflation-linked swap spreads observable in the market and estimations of inflation seasonality, on the basis of which a forward inflation curve is calculated. Also, implied volatilities taken from zero-coupon and year-on-year inflation options are also inputs for the pricing of more complex derivatives. Equity and foreign exchange The most important products in these asset classes are forward and futures contracts; they also include vanilla, listed and OTC (Over-The-Counter) derivatives on single underlying assets and baskets of assets. Vanilla options are priced using the standard Black-Scholes model and more exotic derivatives involving forward returns, average performance, or digital, barrier or callable features are priced using generally accepted industry models or internal models, as appropriate. For derivatives on illiquid stocks, hedging takes into account the liquidity constraints in models. The inputs of equity models consider yield curves, spot prices, dividends, asset funding costs (repo margin spreads), implied volatilities, correlation among equity stocks and indices, and cross- asset correlation. Implied volatilities are obtained from market quotes of European and American-style vanilla call and put options. Various interpolation and extrapolation techniques are used to obtain continuous volatility for illiquid stocks. Dividends are usually estimated for the mid and long term. Correlations are implied, when possible, from market quotes of correlation- dependent products. In all other cases, proxies are used for correlations between benchmark underlyings or correlations are obtained from historical data. The inputs of foreign exchange models include the yield curve for each currency, the spot foreign exchange rate, the implied volatilities and the correlation among assets of this class. Volatilities are obtained from European call and put options which are quoted in markets as of-the-money, risk reversal or butterfly options. Illiquid currency pairs are usually handled by using the data of the liquid pairs from which the illiquid currency can be derived. For more exotic products, unobservable model parameters may be estimated by fitting to reference prices provided by other non-quoted market sources. Credit The most common instrument in this asset class is the credit default swap (CDS), which is used to hedge credit exposure to third parties. In addition, models for first-to-default (FTD), n-to-default (NTD) and single-tranche collateralised debt obligation (CDO) products are also available. These products are valued with standard industry models, which estimate the probability of default of a single issuer (for CDS) or the joint probability of default of more than one issuer for FTD, NTD and CDO. Valuation inputs are the yield curve, the CDS spread curve and the recovery rate. For indices and important individual issuers, the CDS spread curve is obtained in the market. For less liquid issuers, this spread curve is estimated using proxies or other credit-dependent instruments. Recovery rates are usually set to standard values. For listed single-tranche CDO, the correlation of joint default of several issuers is implied from the market. For FTD, NTD and internal CDO, the correlation is estimated from proxies or historical data when no other option is available. Valuation adjustment for counterparty risk or default risk The Credit valuation adjustment (CVA) is a valuation adjustment to over-the-counter (OTC) derivatives as a result of the risk associated with the credit exposure assumed to each counterparty. The CVA is calculated taking into account potential exposure to each counterparty in each future period. The CVA for a specific counterparty is equal to the sum of the CVA for all the periods. The following inputs are used to calculate the CVA: • Expected exposure: including for each transaction the mark-to- market (MtM) value plus an add-on for the potential future exposure for each period. Mitigating factors such as collateral and netting agreements are taken into account, as well as a temporary impairment factor for derivatives with interim payments. • Severity: percentage of final loss assumed in a counterparty credit event/default. • Probability of default: for cases where there is no market information (the CDS quoted spread curve, etc.), proxies based on companies holding exchange-listed CDS, in the same industry and with the same external rating as the counterparty, are used. • Discount factor curve. The Debit Valuation Adjustment (DVA) is a valuation adjustment similar to the CVA but, in this case, it arises as a result of the Group’s own risk assumed by its counterparties in OTC derivatives. Annual report 2025785 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The CVA at 31 December 2025 amounted to EUR 224 million (resulting in a decrease of 17.6% compared to 31 December 2024) and DVA amounted to EUR 285 million (resulting in a decrease of 10.1% compared to 31 December 2024). These decreases are primarily due to the performance of credit markets, with lower spreads compared to December 2024, and secondarily to changes in the composition of certain derivatives portfolios. Furthermore, the observed reduction in CVA is influenced by changes in the calculation models applicable to certain clients. The CVA at 31 December 2024 amounted to EUR 272 million (resulting in a decrease of 7.2% compared to 31 December 2023) and DVA amounted to EUR 317 million (resulting in a decrease of 3.9% compared to 31 December 2023). These decreases are mainly due to the declines in the EUR and USD interest rate markets, lower inflation and the movements in credit markets whose spread levels have reduced moderately compared to those of December 2023. The CVA at 31 December 2023 amounted to EUR 293 million (decrease of 16.5% compared to 31 December 2022) and DVA amounted EUR 330 million (decrease of 9.3% compared to 31 December 2022). These decreases are mainly due to movements in credit markets whose spread levels have reduced moderately compared to those of December 2022, partially offset by the upward movement in interest rates. In addition, the Group amounts the funding fair value adjustment (FFVA) is calculated by applying future market funding spreads to the expected future funding exposure of any uncollateralised component of the OTC derivative portfolio. This includes the uncollateralised component of collateralised derivatives in addition to derivatives that are fully uncollateralised. The expected future funding exposure is calculated by a simulation methodology, where available. The FFVA impact is not material for the consolidated annual accounts as of 31 December 2025, 2024 and 2023. During 2025, the Group has continued to apply the criteria for classifying financial instruments within the levels of the fair value hierarchy established to comply with regulatory expectations. These criteria, based on information from the price contributors and real market transactions, represent a significant reduction in the use of expert judgement to determine observability and allow the measurement of the significance of non-observable valuation inputs based on objective criteria. There has been an increase in instruments classified as Level 3, especially during the last quarter of the year. This increase is due to higher holding volumes of some of these instruments in the portfolio due to new trading activity. No significant reclassifications were detected due to changes in the market observability of the valuation inputs for the remaining positions. The main increases include long-term repo/reverse repo transactions, illiquid equities in non-trading portfolios, and syndicated loans with an HTC&S business model for which there is no observable market price based on the criteria used. Valuation adjustments due to model risk The valuation models described above do not involve a significant level of subjectivity, since they can be adjusted and recalibrated, where appropriate, through internal calculation of the fair value and subsequent comparison with the related actively traded price. However, valuation adjustments may be necessary when market quoted prices are not available for comparison purposes. The sources of risk are associated with uncertain model parameters, illiquid underlying issuers, and poor quality market data or missing risk factors (sometimes the best available option is to use limited models with controllable risk). In these situations, the Group calculates and applies valuation adjustments in accordance with common industry practice. The main sources of model risk are described below: • In the interest rate markets, the sources of model risk include interest rate indexes correlations, basis spread modelling, the risk of calibrating model parameters and the treatment of near- zero or negative interest rates. Other sources of risk arise from the estimation of market data, such as volatilities or yield curves, whether used for estimation or cash flow discounting purposes. • In the stock markets, the sources of model risk include forward skew modelling, the impact of stochastic interest rates, correlation and multi-curve modelling. Other sources of risk arise from managing hedges of digital callable and barrier option payments. Also worthy of consideration as sources of risk are the estimation of market data such as dividends and correlation for quanto and composite basket options. • For specific financial instruments relating to home mortgage loans secured by financial institutions in the UK (which are regulated and partially financed by the Government) and property asset derivatives, the main input is the Halifax House Price Index (HPI). In these cases, risk assumptions include estimations of the future growth and the volatility of the HPI, the mortality rate and the implied credit spreads. • Inflation markets are exposed to model risk resulting from uncertainty around modelling the correlation structure among various Consumer Price Index (CPI) rates. Another source of risk may arise from the bid-offer spread of inflation-linked swaps. • The currency markets are exposed to model risk resulting from forward skew modelling and the impact of stochastic interest rate and correlation modelling for multi-asset instruments. Risk may also arise from market data, due to the existence of specific illiquid foreign exchange pairs. • The most important source of model risk for credit derivatives relates to the estimation of the correlation between the probabilities of default of different underlying issuers. For illiquid underlying issuers, the CDS spread may not be well defined. Annual report 2025786 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Set forth below are the financial instruments at fair value whose measurement was based on internal models (levels 2 and 3) at 31 December 2025 , 2024 and 2023: | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | EUR million | | | | | | | | Fair values calculated using internal models at | | | | | | | 2025A | | | | | | | Level 2 | Level 3 | | Valuation techniques | Main assumptions | | ASSETS | 163,796 | 18,487 | | | | | Financial assets held for trading | 139,293 | 6,496 | | | | | Central banksB | 14,191 | 441 | | Present value method | Yield curves, FX market prices | | Credit institutionsB | 25,815 | 152 | | Present value method | Yield curves, FX market prices | | CustomersB | 27,986 | 4,592 | | Present value method | Yield curves, FX market prices | | Debt and equity instruments | 14,470 | 340 | | Present value method | Yield curves, FX market prices | | Derivatives | 56,831 | 971 | | | | | Swaps | 39,716 | 551 | | Present value method, Gaussian CopulaC | Yield curves, FX market prices, HPI, Basis, Liquidity | | Exchange rate options | 1,332 | 39 | | Black-Scholes Model | Yield curves, Volatility surfaces, FX market prices, Liquidity | | Interest rate options | 1,490 | 39 | | Black's Model, multifactorial advanced models interest rate | Yield curves, Volatility surfaces, FX market prices, Liquidity | | Interest rate forwards | 177 | — | | Present value method | Yield curves, FX market prices | | Index and securities options | 439 | 120 | | Black's Model, multifactorial advanced models interest rate | Yield curves, Volatility surfaces, FX & EQ market prices, Dividends, Liquidity | | Other | 13,677 | 222 | | Present value method, Advanced stochastic volatility models and other | Yield curves, Volatility surfaces, FX and EQ market prices, Dividends, Correlation, HPI, Credit, Others | | Hedging derivatives | 3,924 | 7 | | | | | Swaps | 3,690 | 7 | | Present value method | Yield curves, FX market prices, Basis | | Interest rate options | 91 | — | | Black's Model | Yield curves, FX market prices, Volatility surfaces | | Other | 143 | — | | Present value method, Advanced stochastic volatility models and other | Yield curves, Volatility surfaces, FX market prices, Credit, Liquidity, Others | | Non-trading financial assets mandatorily at fair value through profit or loss | 2,465 | 2,889 | | | | | Equity instruments | 899 | 2,543 | | Present value method | Market price, Interest rates curves, Dividends and Others | | Debt securities | 54 | 175 | | Present value method | Yield curves | | Loans and receivables | 1,512 | 171 | | Present value method, swap asset model & CDS | Yield curves and Credit curves | | Financial assets designated at fair value through profit or loss | 5,152 | 34 | | | | | Central banks | — | — | | Present value method | Yield curves, FX market prices | | Credit institutions | 413 | — | | Present value method | Yield curves, FX market prices, HPI | | Customers | 4,725 | 14 | | Present value method | Yield curves, FX market prices | | Debt securities | 14 | 20 | | Present value method | Yield curves, FX market prices | | Financial assets  at fair value through other comprehensive  income | 12,962 | 9,061 | | | | | Equity instrumentsC | 19 | 272 | | Present value method | Yield curves, Market price, Dividends and Others | | Debt securities | 6,819 | 887 | | Present value method | Yield curves, FX market prices | | Loans and receivablesC | 6,124 | 7,902 | | Present value method | Yield curves, FX market prices and Credit curves | Annual report 2025787 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | EUR million | | | | | | | | Fair values calculated using internal models at | | | | | | | 2025A | | | | | | | Level 2 | Level 3 | | Valuation techniques | Main assumptions | | LIABILITIES | 198,377 | 1,110 | | | | | Financial liabilities held for trading | 133,490 | 864 | | | | | Central banksB | 12,385 | — | | Present value method | FX market prices, Yield curves | | Credit institutionsB | 27,058 | — | | Present value method | FX market prices, Yield curves | | Customers | 36,120 | — | | Present value methodC | FX market prices, Yield curves | | Derivatives | 50,248 | 864 | | | | | Swaps | 33,597 | 418 | | Present value method, Gaussian Copula | Yield curves, FX market prices, Basis, Liquidity, HPI | | Exchange rate options | 903 | 34 | | Black's Model, multifactorial advanced models interest rate | Yield curves, Volatility surfaces, FX & EQ market prices, Dividends, Liquidity | | Forwards on interest rate and variable income | 1,951 | 95 | | Black-Scholes Model | Yield curves, Volatility surfaces, FX market prices | | Index and securities options | 1,094 | 151 | | Black-Scholes Model | Yield curves, FX market prices, Liquidity | | Interest rate and equity futures | 121 | — | | Present value method | Yield curves, Volatility surfaces, FX & EQ market prices, Dividends, Correlation, Liquidity, HPI | | Other | 12,582 | 166 | | Present value method, Advanced stochastic volatility models and others | Yield curves, Volatility surfaces, FX & EQ market prices, Dividends, Correlation, HPI, Credit, Others | | Short positions | 7,679 | — | | Present value method | Yield curves ,FX market prices, Equity | | Hedging derivatives | 4,229 | 19 | | | | | SwapsD | 4,191 | 19 | | Present value method | Yield curves, FX market prices | | Interest rate options | — | — | | Black's Model | Yield curves , Volatility surfaces, FX market prices and Liquidity | | Other | 38 | — | | Present value method, Advanced stochastic volatility models and other | Yield curves , Volatility surfaces, FX market prices, Credit, Liquidity, Other | | Financial liabilities designated at fair value through profit or loss | 42,148 | — | | Present value method | Yield curves, FX market prices | | Liabilities under insurance contracts | 18,510 | 227 | | Present Value Method with actuarial techniques | Mortality tables and interest rate curves | A. Level 2 internal models use data based on observable market parameters, while level 3 internal models use significant non-observable inputs in market data. B. Includes mainly temporary acquisitions/disposals of assets with corporate clients and, to a lesser extent, with central banks. C. Includes mainly syndicated loans under the HTC&S business model. D. It mainly includes short-term deposits that are managed based on their fair value. Annual report 2025788 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | EUR million | | | | | | | | | | Fair values calculated using internal models at | | | Fair values calculated using internal models at | | | | | | 2024A | | | 2023A | | | | | | Level 2 | Level 3 | | Level 2 | Level 3 | | Valuation techniques | | ASSETS | 163,941 | 15,319 | | 133,874 | 10,351 | | | | Financial assets held for trading | 138,176 | 3,930 | | 106,993 | 2,086 | | | | Central banksB | 12,966 | — | | 17,717 | — | | Present value method | | Credit institutionsB | 26,546 | 769 | | 14,061 | — | | Present Value method | | CustomersB | 24,602 | 1,801 | | 11,418 | 24 | | Present Value method | | Debt and equity instruments | 11,115 | 413 | | 8,683 | 915 | | Present Value method | | Derivatives | 62,947 | 947 | | 55,114 | 1,147 | | | | Swaps | 47,519 | 556 | | 44,987 | 577 | | Present Value method, Gaussian Copula | | Exchange rate options | 1,583 | 2 | | 836 | 9 | | Black-Scholes Model | | Interest rate options | 1,879 | 30 | | 2,210 | 153 | | Black's Model, advanced multifactor interest rate models | | Interest rate forwards | 1,445 | — | | 33 | — | | Present Value method | | Index and securities options | 465 | 241 | | 126 | 235 | | Black's Model, advanced multifactor interest rate models | | Other | 10,056 | 118 | | 6,922 | 173 | | Present Value method, Advanced stochastic volatility models and other | | Hedging derivatives | 5,652 | 20 | | 5,297 | — | | | | Swaps | 5,390 | 20 | | 4,665 | — | | Present Value method | | Interest rate options | 2 | — | | 2 | — | | Black’s Model | | Other | 260 | — | | 630 | — | | Present Value method, Advanced stochastic volatility models and other | | Non-trading financial assets mandatorily at fair value through profit or loss | 1,505 | 2,588 | | 2,050 | 2,095 | | | | Equity instruments | 763 | 1,841 | | 815 | 1,495 | | Present Value method | | Debt securities issued | 205 | 242 | | 539 | 313 | | Present Value method | | Loans and receivables | 537 | 505 | | 696 | 287 | | Present Value method, swap asset model & CDS | | Financial assets designated at fair value through profit or loss | 5,065 | 106 | | 6,846 | 181 | | | | Credit institutions | 408 | — | | 459 | — | | Present Value method | | Customers | 4,590 | 20 | | 6,189 | 31 | | Present Value method | | Debt securities | 67 | 86 | | 198 | 150 | | Present Value method | | Financial assets  at fair value through other comprehensive  income | 13,543 | 8,675 | | 12,688 | 5,989 | | | | Equity instruments | 5 | 375 | | 5 | 492 | | Present Value method | | Debt securities | 9,644 | 1,047 | | 9,638 | 559 | | Present Value method | | Loans and receivablesC | 3,894 | 7,253 | | 3,045 | 4,938 | | Present Value method | Annual report 2025789 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | EUR million | | | | | | | | | | Fair values calculated using internal models at | | | Fair values calculated using internal models at | | | | | | 2024A | | | 2023A | | | | | | Level 2 | Level 3 | | Level 2 | Level 3 | | Valuation techniques | | LIABILITIES | 179,766 | 1,352 | | 166,542 | 1,227 | | | | Financial liabilities held for trading | 121,243 | 934 | | 101,103 | 869 | | | | Central banksB | 13,300 | — | | 7,808 | — | | Present Value method | | Credit institutionsB | 26,284 | — | | 17,862 | — | | Present Value method | | Customers | 18,984 | — | | 19,837 | — | | Present Value method | | Derivatives | 56,205 | 934 | | 49,380 | 869 | | | | Swaps | 41,283 | 479 | | 39,395 | 388 | | Present Value method, Gaussian Copula | | Interest rate options | 2,295 | 79 | | 2,207 | 139 | | Black's Model, advanced multifactor interest rate models | | Exchange rate options | 1,057 | — | | 549 | 8 | | Black-Scholes Model | | Index and securities options | 1,160 | 294 | | 466 | 187 | | Black's Model, advanced multifactor interest rate models | | Forwards on interest rate and variable income | 1,276 | — | | 101 | — | | Present Value method | | Other | 9,134 | 82 | | 6,662 | 147 | | Present Value method, Advanced stochastic volatility models and other | | Short positions | 6,470 | — | | 6,216 | — | | Present Value method | | Hedging derivatives | 4,740 | 12 | | 7,650 | 6 | | | | Swaps | 4,618 | 12 | | 6,866 | 6 | | Present Value method | | Interest rate options | 3 | — | | 1 | — | | Black’s Model | | Other | 119 | — | | 783 | — | | Present Value method, Advanced stochastic volatility models and other | | Financial liabilities designated at fair value through profit or loss D | 36,200 | 160 | | 40,313 | 29 | | Present Value method | | Liabilities under insurance contracts | 17,583 | 246 | | 17,476 | 323 | | Present Value method with actuarial techniques | A. Level 2 internal models use data based on observable market parameters, while level 3 internal models use significant non-observable inputs in market data. B. Includes mainly temporary acquisitions/disposals of assets with corporate clients and, to a lesser extent, with central banks. C. Includes mainly syndicated loans under the HTC&S business model. D. Includes, mainly, short-term deposits that are managed based on their fair value. #### b) Financial Instruments (level 3) Set forth below are the Group’s main financial instruments measured using unobservable market data as significant inputs of the internal models (level 3): • HTC&S (Held to collect and sale) syndicated loans classified in the fair value category with changes in other comprehensive income, where the cost of liquidity is not directly observable in the market, as well as the prepayment option in favour of the borrower. • Repos and reverse repos classified as financial assets held for trading, whose valuation uses significant unobservable inputs, mainly associated with credit adjustments, liquidity and certain specific characteristics of the counterparty and the collateral. • Illiquid equity in non-trading portfolios, classified at fair value through profit or loss and at fair value through equity. • Instruments in Santander UK’s portfolio (loans, debt securities and derivatives) linked to the House Price Index (HPI). Even if the valuation techniques used for these instruments may be the same as those used to value similar products (present value in the case of loans and debt securities, and the Black-Scholes model for derivatives), the main factors used in the valuation of these instruments are the HPI spot rate, the growth and volatility thereof, and the mortality rates, which are not always observable in the market and, accordingly, these instruments are considered illiquid. • Callable interest rate derivatives (Bermudan-style options) where the main unobservable input is mean reversion of interest rates. • Trading derivatives on interest rates, taking as an underlying asset titling and with the amortization rate (CPR, Conditional prepayment rate) as unobservable main entry. • Derivatives from trading on inflation in Spain, where volatility is not observable in the market. • Equity volatility derivatives, specifically indices and equities, where volatility is not observable in the long term. • Derivatives on long-term interest rate and FX in some units (mainly South America) where for certain underlyings it is not possible to demonstrate observability to these terms. • Debt instruments referenced to certain illiquid interest rates, for which there is no reasonable market observability. Annual report 2025790 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The measurements obtained using the internal models might have been different if other methods or assumptions had been used with respect to interest rate risk, to credit risk, market risk and foreign currency risk spreads, or to their related correlations and volatilities. Nevertheless, the Bank considers that the fair value of the financial assets and liabilities recognised in the consolidated balance sheet and the gains and losses arising from these financial instruments are reasonable. The net amount recognised in profit and loss in 2025 arising from models whose significant inputs are unobservable market data (level 3) amounted to EUR 469 profit (EUR 523 million and EUR 404 million profit in 2024 and 2023, respectively). 1. #### Valuation techniques The table below shows the effect, at 31 December 2025, 2024 and 2023 on the fair value of the main financial instruments classified as level 3 of a reasonable change in the assumptions used in the valuation. This effect was determined by applying the probable valuation ranges of the main unobservable inputs detailed in the following table: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 2025 | | | | | | | | Portfolio/Instrument | Valuation technique | Main unobservable inputs | Range | Weighted average | Impacts (EUR million) | | | (Level 3) | Unfavourable scenario | Favourable scenario | | Financial assets held for trading | | | | | | | | Loans and advances to customers | | | | | | | | Repos/Reverse repos | Market proxy | Price / Credit spread | n.a. | n.a. | (10.50) | 10.50 | | Debt securities | | | | | | | | Corporate debt | Discounted Cash Flows | Credit spread | 0% - 10% | 5.10% | (2.24) | 2.29 | | Government debt | Discounted Cash Flows | Discount curve | 0% - 8% | 4.00% | (9.21) | 9.24 | | Others | Discounted Cash Flows | Credit spread | 10% - 90% | 35.50% | (1.32) | 0.62 | | Derivatives | | | | | | | | Cap&Floor | Modelo de Black Scholes | Volatility | (6.50)bps - 6.50bps | 1.00bps | (0.38) | 0.52 | | CCS | Discounted Cash Flows | Credit spread | 146.3% - 148.3% | 147.30% | (0.01) | 0.01 | | EQ Options | EQ option pricing model | Volatility | 0% - 70% | 40.50% | (0.17) | 0.24 | | EQ Options | Local volatility | Volatility | 10% - 90% | 50.00% | (18.86) | 18.86 | | Fx Options | Fx option pricing model | Volatility | 0% - 40% | 19.80% | (0.5) | 0.49 | | FX Forward | Forward estimation | Swap Rate | 0% - 15% | 8.10% | (0.01) | 0.02 | | Inflation Derivatives | Asset Swap model | Inflation Swap Rate | 2% - 8% | 4.90% | (0.18) | 0.17 | | IR Options | IR option pricing model | Volatility | 0% - 30% | 14.80% | (0.19) | 0.19 | | IR Options | INF option pricing model | Volatility | 0% - 30% | 14.90% | (0.63) | 0.63 | | IRS | Others | Others | 5% - n.a. | n.a. | (11.24) | 8.23 | | IRS | Discounted Cash Flows | Credit spread | 19.6% - 127.5% | 50.50% | (2.1) | 0.84 | | IRS | Discounted Cash Flows | Inflation Swap Rate | 1.0% - 99.0% | 99.00% | — | 1.41 | | Others | Forward estimation | Price | 60bps - 300bps | 179.80bps | (3.48) | 3.47 | | Property derivatives | Option pricing model | Growth rate | (5)% - 5% | 0.00% | (2.64) | 2.64 | | Securitisation Swap | Discounted Cash Flows | Constant prepayment rates | 10% - 90% | 50.00% | — | — | | Financial assets designated at fair value through profit or loss | | | | | | | | Loans and advances to customers | | | | | | | | Loans | Discounted Cash Flows | Credit spreads | 0.1% - 3% | 1.60% | (0.12) | 0.12 | | Mortgage portfolio | Black Scholes model | Growth rate | (5)% - 5% | 0.00% | (0.23) | 0.23 | | Debt securities | | | | | | | | Other debt securities | Others | Inflation Swap Rate | 0% - 8% | 4.10% | — | — | Annual report 2025791 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 2025 | | | | | | | | Portfolio/Instrument | Valuation technique | Main unobservable inputs | Range | Weighted average | Impacts (EUR million) | | | (Level 3) | Unfavourable scenario | Favourable scenario | | Non-trading financial assets mandatorily at fair value through profit or loss | | | | | | | | Debt securities | | | | | | | | Property securities | Probability weighting | Growth rate | (5)% - 5% | 0.00% | (0.11) | 0.11 | | Equity instruments | | | | | | | | Equities | Price Based | Price | 90% - 110% | 100.00% | (254.29) | 254.29 | | Financial assets at fair value through other comprehensive income | | | | | | | | Loans and advances to customers | | | | | | | | Loans | Discounted Cash Flows | Credit spread | n.a. | n.a. | (2.33) | 2.33 | | Loans | Discounted Cash Flows | Interest rate curve | 6.1% - 7.2% | 6.60% | — | — | | Loans | Discounted Cash Flows | Margin of a reference portfolio | 3% - 7% | 5% | (0.25) | 0.25 | | Loans | Present value method | Credit spread | 121.9bps - 174.7 bps | 121.9bps | (1.6) | — | | Loans | Market price | Market price | (0.3)% - 0.1% | (0.30%) | (2.70) | 0.54 | | Debt securities | | | | | | | | Mortgage Letters | Discounted Cash Flows | Mortgage Letters | 3.4% - 5.5% | 4.50% | — | — | | Equity instruments | | | | | | | | Equities | Price Based | Price | 90% - 110% | 100.00% | (27.16) | 27.16 | | Financial liabilities held for trading | | | | | | | | Derivatives | | | | | | | | Cap&Floor | Volatility option model | Volatility | 10% - 90% | 43.80% | (0.09) | 0.07 | | FX Options | Volatility option model | Volatility | 10% - 90% | 42.30% | (0.33) | 0.22 | | IRS | Discounted Cash Flows | Inflation Swap Rate | 1% - 99% | 50.40% | (1.38) | 1.40 | | IRS | Discounted Cash Flows | Credit Spread | 8.4bps - 19.2bps | 10.70bps | (2.42) | 0.66 | Annual report 2025792 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 2024 | | | | | | | | Portfolio/Instrument | Valuation technique | Main unobservable inputs | Range | Weighted average | Impacts (EUR million) | | | (Level 3) | Unfavourable scenario | Favourable scenario | | Financial assets held for trading | | | | | | | | Loans and advances to customers | | | | | | | | Repos/Reverse repos | Other | Long-term repo spread | n.a. | n.a. | (0.05) | — | | Debt securities | | | | | | | | Corporate debt | Discounted Cash Flows | Credit spread | 0% - 10% | 5.10% | (2.24) | 2.29 | | Government debt | Discounted Cash Flows | Discount curve | 0% - 8% | 4.00% | (9.21) | 9.24 | | Others | Discounted Cash Flows | Credit spread | 10% - 90% | 35.50% | (1.32) | 0.62 | | Derivatives | | | | | | | | Cap&Floor | Forward estimation | Interest rate | (2)bps - 2bps | 0.00bps | — | — | | CCS | Discounted Cash Flows | Credit spread | 158% - 165% | 161.50% | (0.01) | 0.01 | | CDS | Price | Credit spread | 100% - 250% | 178.83% | (0.09) | 0.10 | | EQ Options | EQ option pricing model | Volatility | 0% - 70% | 41.25% | (0.48) | 0.69 | | EQ Options | Local volatility | Volatility | 10% - 90% | 50.00% | (21.54) | 21.54 | | FX Forward | Forward estimation | Swap Rate | 0% - 15% | 8.08% | (0.06) | 0.07 | | FX Options | FX option pricing model | Volatility | 0% - 40% | 20.10% | (0.65) | 0.66 | | Inflation Derivatives | Asset Swap model | Inflation Swap Rate | 2% - 8% | 4.78% | (0.21) | 0.18 | | IR Options | IR option pricing model | Volatility | 0% - 30% | 17.34% | (0.16) | 0.22 | | IRS | Others | Others | 5% - n.a. | n.a. | (4.09) | — | | IRS | Discounted Cash Flows | Credit spread | 47.8% - 273.4% | 155.36% | (1.91) | 1.74 | | IRS | Discounted Cash Flows | Swap rate | 1% - 99% | 49.58% | (2.45) | 2.41 | | Others | Forward estimation | Price | 60bps - 300bps | 181.50bps | (3.00) | 3.08 | | Property derivatives | Option pricing model | Growth rate | (5)% - 5% | 0.00% | (3.39) | 3.39 | | Securitisation Swap | Discounted Cash Flows | Constant prepayment rates | 10% - 90% | 50.00% | (0.63) | 0.63 | | Financial assets designated at fair value through profit or loss | | | | | | | | Loans and advances to customers | | | | | | | | Loans | Discounted Cash Flows | Credit spreads | 0.1% - 2.0% | 1.05% | (0.15) | 0.15 | | Mortgage portfolio | Black Scholes model | Growth rate | (5)% - 5% | 0.00% | (0.24) | 0.24 | | Debt securities | | | | | | | | Other debt securities | Others | Inflation Swap Rate | 0% - 8% | 3.96% | (3.63) | 3.55 | Annual report 2025793 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 2024 | | | | | | | | Portfolio/Instrument | Valuation technique | Main unobservable inputs | Range | Weighted average | Impacts (EUR million) | | | (Level 3) | Unfavourable scenario | Favourable scenario | | Non-trading financial assets mandatorily at fair value through profit or loss | | | | | | | | Debt securities | | | | | | | | Property securities | Probability weighting | Growth rate | (5)% - 5% | 0.00% | (0.24) | 0.24 | | Equity instruments | | | | | | | | Equities | Price Based | Price | 90% - 110% | 100.00% | (183.98) | 183.98 | | Financial assets at fair value through other comprehensive income | | | | | | | | Loans and advances to customers | | | | | | | | Loans | Discounted Cash Flows | Credit spread | n.a. | n.a. | (18.61) | — | | Loans | Discounted Cash Flows | Interest rate curve | 3.4% - 6.5% | 4.95% | (0.17) | 0.17 | | Loans | Discounted Cash Flows | Margin of a reference portfolio | (1)bps - 1bps | 0bp | (30.36) | 30.36 | | Loans | Forward estimation | Credit spread | 150bps - 232bps | 150bps | (1.96) | — | | Loans | Market price | Market price | (5)% - 20% | 0.01% | (4.91) | 1.23 | | Debt securities | | | | | | | | Corporate debt | Discounted Cash Flows | Margin of a reference portfolio | (0.01)% - 0.01% | 0.00% | (0.09) | 0.09 | | Mortgage Letters | Discounted Cash Flows | Mortgage Letters | 1.6% - 5.2% | 3.40% | — | — | | Equity instruments | | | | | | | | Equities | Price Based | Price | 90% - 110% | 100.00% | (37.56) | 37.56 | | Financial liabilities held for trading | | | | | | | | Derivatives | | | | | | | | Cap&Floor | Volatility option model | Volatility | 10% - 90% | 42.20% | (0.11) | 0.07 | | FX Options | Volatility option model | Volatility | 10% - 90% | 45.30% | (0.03) | 0.02 | | IRS | Discounted Cash Flows | Inflation Swap Rate | 1% - 99% | 47.12% | (4.77) | 4.24 | | IRS | Discounted Cash Flows | Credit spread | 34bps - 68bps | 44bps | (4.09) | 1.65 | A. For each instrument, the valuation technique, the unobservable inputs are shown in the 'Main observable inputs' column under probable scenarios, variation range, average value and impact resulting from valuing the position in the established maximum and minimum range. B. The breakdown of impacts is shown by type of instrument and unobservable inputs. C. The estimation of the range of variation of the unobservable inputs has been carried out taking into account plausible movements of said parameters depending on the type of instrument. D. Zero impacts from fully hedged or back-to-back transactions have not been included in this exercise. Annual report 2025794 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 2023 | | | | | | | | Portfolio/Instrument | Valuation technique | Main unobservable inputs | Range | Weighted average | Impacts (EUR million) | | | (Level 3) | Unfavourable scenario | Favourable scenario | | Financial assets held for trading | | | | | | | | Loans and advances to customers | | | | | | | | Repos/Reverse repos | Other | Long-term repo spread | n.a. | n.a. | (0.05) | — | | Debt securities | | | | | | | | Corporate debt | Discounted Cash Flows | Credit spread | 0% - 10% | 5.06% | (4.50) | 4.61 | | Government debt | Discounted Cash Flows | Discount curve | 0% - 8% | 3.99% | (8.07) | 8.02 | | Derivatives | | | | | | | | CCS | Forward estimation | Interest rate | (6)bps - 6bps | 0.40bps | (0.90) | 1.03 | | CDS | Credit default models | Illiquid credit default spread curves | 100bps - 200bps | 149.14bps | (0.14) | 0.14 | | EQ Options | EQ option pricing model | Volatility | 0% - 70% | 41.25% | (0.48) | 0.69 | | EQ Options | Local volatility | Volatility | 10% - 90% | 50.00% | (21.54) | 21.54 | | FX Options | FX option pricing model | Volatility | 0% - 40% | 20.10% | (0.65) | 0.66 | | Inflation Derivatives | Asset Swap model | Inflation Swap Rate | 2% - 8% | 4.78% | (0.21) | 0.18 | | IR Options | IR option pricing model | Volatility | 0.0% - 30.0% | 17.34% | (0.16) | 0.22 | | IRS | Others | Others | 5% - n.a. | n.a. | (4.09) | — | | IRS | Discounted Cash Flows | Credit spread | 47.8% - 273.4% | 155.36% | (1.91) | 1.74 | | IRS | Discounted Cash Flows | Swap rate | 1.0% - 99.0% | 49.58% | (2.45) | 2.41 | | IRS | Forward estimation | Interest rate | (5.2)bps - 5.2bps | 0.09bps | (0.03) | 0.03 | | IRS | Prepayment modelling | Prepayment rate | 2.5% - 9.0% | 8.92% | — | 0.05 | | Property derivatives | Option pricing model | Growth rate | (5)% - 5% | 0.00% | (3.39) | 3.39 | | Securitisation Swap | Discounted Cash Flows | Constant prepayment rates | 10.00% - 90.00% | 50.00% | (0.63) | 0.63 | | Structured notes | Price based | Price | (10)% - 10% | 0.00% | (1.53) | 1.53 | | Financial assets designated at fair value through profit or loss | | | | | | | | Loans and advances to customers | | | | | | | | Loans | Discounted Cash Flows | Credit spreads | 0.1% - 2% | 1.05% | (0.15) | 0.15 | | Mortgage portfolio | Black Scholes model | Growth rate | (5)% - 5% | 0.00% | (0.24) | 0.24 | | Debt securities | | | | | | | | Other debt securities | Others | Inflation Swap Rate | 0% - 8% | 3.96% | (3.63) | 3.55 | Annual report 2025795 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 2023 | | | | | | | | Portfolio/Instrument | Valuation technique | Main unobservable inputs | Range | Weighted average | Impacts (EUR million) | | | (Level 3) | Unfavourable scenario | Favourable scenario | | Non-trading financial assets mandatorily at fair value through profit or loss | | | | | | | | Debt securities | | | | | | | | Property securities | Probability weighting | Growth rate | (5)% - 5% | 0.00% | (0.24) | 0.24 | | Equity instruments | | | | | | | | Equities | Price Based | Price | 90% - 110% | 100.00% | (183.98) | 183.98 | | Financial assets at fair value through other comprehensive income | | | | | | | | Loans and advances to customers | | | | | | | | Loans | Discounted Cash Flows | Credit spread | n.a. | n.a. | (18.61) | — | | Loans | Discounted Cash Flows | Interest rate curve | 3.4% - 6.5% | 4.95% | (0.17) | 0.17 | | Loans | Discounted Cash Flows | Margin of a reference portfolio | (1)bp - 1bp | 0bp | (30.36) | 30.36 | | Loans | Forward estimation | Credit spread | 150.0bps - 232.0bps | 150.00bps | (1.96) | — | | Loans | Market price | Market price | (5)% - 20% | 0.01% | (4.91) | 1.23 | | Debt securities | | | | | | | | Corporate debt | Discounted Cash Flows | Margin of a reference portfolio | (0.01)% - 0.01% | 0.00% | (0.09) | 0.09 | | Government debt | Discounted Cash Flows | Interest rate | 0% - 2% | 0.99% | — | — | | Equity instruments | | | | | | | | Equities | Price Based | Price | 90% - 110% | 100.00% | (37.56) | 37.56 | | Financial liabilities held for trading | | | | | | | | Derivatives | | | | | | | | Cap&Floor | Volatility option model | Volatility | 10% - 90% | 42.20% | (0.11) | 0.07 | | CMS | Discounted Cash Flows | Volatility | 10% - 90% | 47.66% | — | — | | FX Options | Volatility option model | Volatility | 10% - 90% | 45.30% | (0.03) | 0.02 | | IRS | Discounted Cash Flows | Inflation Swap Rate | 10% - 90% | 39.03% | (4.09) | 1.65 | | Swaptions | Volatility option model | Volatility | 10% - 90% | 35.55% | (0.21) | 0.10 | A. For each instrument, the valuation technique, the unobservable inputs are shown in the 'Main observable inputs' column under probable scenarios, variation range, average value and impact resulting from valuing the position in the established maximum and minimum range. B. The breakdown of impacts is shown by type of instrument and unobservable inputs. C. The estimation of the range of variation of the unobservable inputs has been carried out taking into account plausible movements of said parameters depending on the type of instrument. D. Zero impacts from fully hedged or back-to-back transactions have not been included in this exercise. Annual report 2025796 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 2. Movement of financial instruments classified as Level 3 Lastly, the changes in the financial instruments classified as Level 3 in 2025, 2024 and 2023 were as follows: | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | 01/01/2025 | | Changes | | | | | | | 31/12/2025 | | EUR million | Fair value calculated using internal models (Level 3) | | Purchases/ Issuances | Sales/ Settlements | Changes in fair value recognised in profit or loss | Changes in fair value recognised in equity | Level reclassifications | Other | | Fair value calculated using internal models (level 3) | | Financial assets held for trading | 3,930 | | 5,353 | (2,748) | 57 | — | (9) | (87) | | 6,496 | | Central Banks | — | | 437 | — | 4 | — | — | — | | 441 | | Credit entities | 769 | | 128 | (744) | — | — | — | (1) | | 152 | | Customers | 1,801 | | 4,450 | (1,711) | 52 | — | 2 | (2) | | 4,592 | | Debt securities | 413 | | 110 | (112) | (13) | — | (21) | (37) | | 340 | | Trading derivatives | 947 | | 228 | (181) | 14 | — | 10 | (47) | | 971 | | Swaps | 556 | | 1 | (81) | (30) | — | (21) | 126 | | 551 | | Exchange rate options | 2 | | — | — | 5 | — | 19 | 13 | | 39 | | Interest rate options | 30 | | 6 | — | 1 | — | 20 | (18) | | 39 | | Index and securities options | 241 | | 1 | (41) | 37 | — | (5) | (113) | | 120 | | Interest rate futures | — | | — | (14) | — | — | (6) | 20 | | — | | Other | 118 | | 220 | (45) | 1 | — | 3 | (75) | | 222 | | Hedging derivatives (Assets) | 20 | | — | — | (7) | — | (4) | (2) | | 7 | | Swaps | 20 | | — | — | (7) | — | (4) | (2) | | 7 | | Financial assets at fair value through profit or loss | 106 | | 33 | (100) | (5) | — | — | — | | 34 | | Loans and advances to customers | 20 | | — | — | (5) | — | — | (1) | | 14 | | Debt securities | 86 | | 33 | (100) | — | — | — | 1 | | 20 | | Non-trading financial assets mandatorily at fair value through profit or loss | 2,588 | | 324 | (191) | 360 | — | (266) | 74 | | 2,889 | | Customers | 505 | | — | — | (36) | — | (266) | (32) | | 171 | | Debt instruments | 242 | | 24 | (40) | (27) | — | — | (24) | | 175 | | Equity instruments | 1,841 | | 300 | (151) | 423 | — | — | 130 | | 2,543 | | Financial assets at fair value through other comprehensive income | 8,675 | | 7,635 | (6,159) | — | (73) | 57 | (1,074) | | 9,061 | | Loans and advances | 7,253 | | 7,259 | (5,621) | — | (87) | 97 | (999) | | 7,902 | | Debt securities | 1,047 | | 360 | (530) | — | 16 | (40) | 34 | | 887 | | Equity instruments | 375 | | 16 | (8) | — | (2) | — | (109) | | 272 | | TOTAL ASSETS | 15,319 | | 13,345 | (9,198) | 405 | (73) | (222) | (1,089) | | 18,487 | | Financial liabilities held for trading | 934 | | 160 | (206) | (59) | — | 16 | 19 | | 864 | | Trading derivatives | 934 | | 160 | (206) | (59) | — | 16 | 19 | | 864 | | Swaps | 479 | | 1 | (88) | (90) | — | 19 | 97 | | 418 | | Exchange rate options | — | | — | (1) | 2 | — | 18 | 15 | | 34 | | Interest rate options | 79 | | — | (25) | 17 | — | (3) | 27 | | 95 | | Index and securities options | 294 | | 1 | (83) | 6 | — | (4) | (63) | | 151 | | Securities and interest rate futures | — | | — | — | — | — | (19) | 19 | | — | | Others | 82 | | 158 | (9) | 6 | — | 5 | (76) | | 166 | | Hedging derivatives (Liabilities) | 12 | | — | (1) | 14 | — | (6) | — | | 19 | | Swaps | 12 | | — | — | 14 | — | (6) | (1) | | 19 | | Interest rate options | — | | — | (1) | — | — | — | 1 | | — | | Financial liabilities designated at fair value through profit or loss | 160 | | — | (49) | — | — | (111) | — | | — | | Liabilities under insurance contracts | 246 | | — | — | (19) | — | — | — | | 227 | | TOTAL LIABILITIES | 1,352 | | 160 | (256) | (64) | — | (101) | 19 | | 1,110 | Annual report 2025797 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | 01/01/2024 | | Changes | | | | | | | 31/12/2024 | | EUR million | Fair value calculated using internal models (level 3) | | Purchases /Issuances | Sales/ Settlements | Changes in fair value recognized in profit or loss | Changes in fair value recognized in equity | Level reclassifications | Other | | Fair value calculated using internal models (level 3) | | Financial assets held for trading | 2,086 | | 3,205 | (813) | 302 | — | (715) | (135) | | 3,930 | | Credit entities | — | | 770 | — | (1) | — | — | — | | 769 | | Customers | 24 | | 1,808 | (24) | (7) | — | — | — | | 1,801 | | Debt securities | 914 | | 355 | (384) | (39) | — | (377) | (56) | | 413 | | Equity instruments | 1 | | — | — | (1) | — | — | — | | — | | Trading derivatives | 1,147 | | 272 | (405) | 350 | — | (338) | (79) | | 947 | | Swaps | 577 | | 184 | (278) | 186 | — | (152) | 39 | | 556 | | Exchange rate options | 9 | | — | (1) | — | — | (6) | — | | 2 | | Interest rate options | 153 | | 13 | (42) | (20) | — | (74) | — | | 30 | | Index and securities options | 235 | | 42 | (44) | 128 | — | (106) | (14) | | 241 | | Other | 173 | | 33 | (40) | 56 | — | — | (104) | | 118 | | Hedging derivatives (Assets) | — | | — | — | 15 | — | (1) | 6 | | 20 | | Swaps | — | | — | — | 15 | — | (1) | 6 | | 20 | | Financial assets at fair value through profit or loss | 181 | | 417 | (300) | 13 | — | (201) | (4) | | 106 | | Loans and advances to customers | 31 | | — | — | (5) | — | (23) | 17 | | 20 | | Debt securities | 150 | | 417 | (300) | 18 | — | (178) | (21) | | 86 | | Non-trading financial assets mandatorily at fair value through profit or loss | 2,095 | | 719 | (349) | 73 | — | 132 | (82) | | 2,588 | | Customers | 287 | | 390 | (128) | (31) | — | 41 | (54) | | 505 | | Debt instruments | 313 | | 4 | (96) | 10 | — | 11 | — | | 242 | | Equity instruments | 1,495 | | 325 | (125) | 94 | — | 80 | (28) | | 1,841 | | Financial assets at fair value through other comprehensive income | 5,989 | | 6,707 | (3,781) | — | (136) | 6 | (110) | | 8,675 | | Loans and advances | 4,938 | | 5,962 | (3,685) | — | 43 | — | (5) | | 7,253 | | Debt securities | 559 | | 743 | (81) | — | (74) | 6 | (106) | | 1,047 | | Equity instruments | 492 | | 2 | (15) | — | (105) | — | 1 | | 375 | | TOTAL ASSETS | 10,351 | | 11,048 | (5,243) | 403 | (136) | (779) | (325) | | 15,319 | | Financial liabilities held for trading | 869 | | 472 | (200) | (95) | — | (266) | 154 | | 934 | | Trading derivatives | 869 | | 472 | (200) | (95) | — | (266) | 154 | | 934 | | Swaps | 388 | | 371 | (20) | (205) | — | (105) | 50 | | 479 | | Exchange rate options | 8 | | — | (5) | — | — | (3) | — | | — | | Interest rate options | 139 | | — | (54) | 3 | — | (10) | 1 | | 79 | | Index and securities options | 187 | | 54 | (14) | 113 | — | (40) | (6) | | 294 | | Others | 147 | | 47 | (107) | (6) | — | (108) | 109 | | 82 | | Hedging derivatives (Liabilities) | 6 | | — | — | — | — | — | 6 | | 12 | | Swaps | 6 | | — | — | — | — | — | 6 | | 12 | | Financial liabilities designated at fair value through profit or loss | 29 | | 41 | (5) | 1 | — | 94 | — | | 160 | | Liabilities under insurance contracts | 323 | | — | — | (26) | — | — | (51) | | 246 | | TOTAL LIABILITIES | 1,227 | | 513 | (205) | (120) | — | (172) | 109 | | 1,352 | Annual report 2025798 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | 01/01/2023 | | Changes | | | | | | | 31/12/2023 | | EUR million | Fair value calculated using internal models (level 3) | | Purchases/ Issuances | Sales/ Settlements | Changes in fair value recognised in profit or loss | Changes in fair value recognised in equity | Level reclassifications | Other | | Fair value calculated using internal models (level 3) | | Financial assets held for trading | 383 | | 496 | (149) | 194 | — | 1,162 | — | | 2,086 | | Customers | — | | 23 | — | 1 | — | — | — | | 24 | | Debt securities | 42 | | 126 | (63) | 30 | — | 773 | 6 | | 914 | | Equity instruments | 1 | | — | — | — | — | — | — | | 1 | | Trading derivatives | 340 | | 347 | (86) | 163 | — | 389 | (6) | | 1,147 | | Swaps | 139 | | 90 | (4) | 179 | — | 191 | (18) | | 577 | | Exchange rate options | 4 | | 1 | — | 4 | — | — | — | | 9 | | Interest rate options | 39 | | — | — | 2 | — | 112 | — | | 153 | | Index and securities options | 48 | | 132 | (4) | (20) | — | 76 | 3 | | 235 | | Other | 110 | | 124 | (78) | (2) | — | 10 | 9 | | 173 | | Financial assets at fair value through profit or loss | 427 | | 51 | — | (21) | — | 22 | (298) | | 181 | | Loans and advances to customers | 5 | | — | — | 4 | — | 22 | — | | 31 | | Debt securities | 422 | | 51 | — | (25) | — | — | (298) | | 150 | | Non-trading financial assets mandatorily at fair value through profit or loss | 1,833 | | 345 | (238) | 107 | — | (6) | 54 | | 2,095 | | Customers | 239 | | 99 | (73) | 13 | — | — | 9 | | 287 | | Debt securities | 325 | | 38 | (48) | (5) | — | — | 3 | | 313 | | Equity instruments | 1,269 | | 208 | (117) | 99 | — | (6) | 42 | | 1,495 | | Financial assets at fair value through other comprehensive income | 5,647 | | 3,322 | (3,411) | — | (204) | 231 | 404 | | 5,989 | | Loans and advances | 4,718 | | 3,322 | (3,408) | — | 36 | 160 | 110 | | 4,938 | | Debt securities | 229 | | — | — | — | 5 | 71 | 254 | | 559 | | Equity instruments | 700 | | — | (3) | — | (245) | — | 40 | | 492 | | TOTAL ASSETS | 8,290 | | 4,214 | (3,798) | 280 | (204) | 1,409 | 160 | | 10,351 | | Financial liabilities held for trading | 415 | | 276 | (167) | (118) | — | 476 | (13) | | 869 | | Trading derivatives | 415 | | 276 | (167) | (118) | — | 476 | (13) | | 869 | | Swaps | 235 | | 53 | (83) | (58) | — | 257 | (16) | | 388 | | Exchange rate options | — | | 6 | — | 2 | — | — | — | | 8 | | Interest rate options | 19 | | 4 | (5) | (16) | — | 137 | — | | 139 | | Index and securities options | 42 | | 88 | (13) | (15) | — | 82 | 3 | | 187 | | Others | 119 | | 125 | (66) | (31) | — | — | — | | 147 | | Hedging derivatives (Liabilities) | 14 | | — | — | (3) | — | (5) | — | | 6 | | Swaps | 14 | | — | — | (3) | — | (5) | — | | 6 | | Financial liabilities designated at fair value through profit or loss | 151 | | 32 | (151) | (3) | — | — | — | | 29 | | Liabilities under insurance contracts | 345 | | — | — | — | (40) | — | 18 | | 323 | | TOTAL LIABILITIES | 925 | | 308 | (318) | (124) | (40) | 471 | 5 | | 1,227 | Annual report 2025799 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 51. #### Other disclosures #### a) Residual maturity periods The detail, by maturity, of the balances of certain items in the consolidated balance sheet at 31 December 2025 , 2024 and 2023 is presented below: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | 31 December 2025 | | | | | | | | | EUR million | | | | | | | | | On demand | Within 3 months | 3 to 12 months | 1 to 3 years | 3 to 5 years | More than 5 years | Total | | Assets | | | | | | | | | Cash, cash balances at Central Banks and other deposits on demand | 152,281 | | | | | | 152,281 | | Financial assets at fair value through other comprehensive income | — | 12,721 | 8,593 | 14,012 | 8,315 | 28,690 | 72,331 | | Debt securities | — | 10,677 | 7,631 | 12,139 | 6,619 | 21,239 | 58,305 | | Loans and advances | — | 2,044 | 962 | 1,873 | 1,696 | 7,451 | 14,026 | | Credits institutions | — | — | 111 | 3 | 5 | 1,001 | 1,120 | | Customers | — | 2,044 | 851 | 1,870 | 1,691 | 6,450 | 12,906 | | Financial assets at amortized cost | 40,174 | 213,109 | 173,400 | 208,743 | 163,374 | 403,889 | 1,202,689 | | Debt securities | — | 8,547 | 9,312 | 25,469 | 17,474 | 79,212 | 140,014 | | Loans and advances | 40,174 | 204,562 | 164,088 | 183,274 | 145,900 | 324,677 | 1,062,675 | | Central banks | — | 14,782 | — | — | 1,134 | 70 | 15,986 | | Credits institutions | 4,577 | 26,620 | 10,564 | 5,594 | 1,198 | 12,960 | 61,513 | | Customers | 35,597 | 163,160 | 153,524 | 177,680 | 143,568 | 311,647 | 985,176 | | | 192,455 | 225,830 | 181,993 | 222,755 | 171,689 | 432,579 | 1,427,301 | | Liabilities | | | | | | | | | Financial liabilities at amortized cost | 700,717 | 271,366 | 147,951 | 132,783 | 72,048 | 96,319 | 1,421,184 | | Deposits | 688,927 | 223,636 | 96,132 | 37,030 | 9,216 | 17,443 | 1,072,384 | | Central banks | 857 | 8,550 | 4,615 | 2,892 | — | 1,628 | 18,542 | | Credit institutions | 6,342 | 34,993 | 11,677 | 12,197 | 1,845 | 7,638 | 74,692 | | Customer deposits | 681,728 | 180,093 | 79,840 | 21,941 | 7,371 | 8,177 | 979,150 | | Marketable debt securitiesA | — | 38,875 | 48,971 | 94,735 | 62,275 | 67,848 | 312,704 | | Other financial liabilities | 11,790 | 8,855 | 2,848 | 1,018 | 557 | 11,028 | 36,096 | | | 700,717 | 271,366 | 147,951 | 132,783 | 72,048 | 96,319 | 1,421,184 | | Difference (assets less liabilities) | (508,262) | (45,536) | 34,042 | 89,972 | 99,641 | 336,260 | 6,117 | A. Includes promissory notes, certificates of deposit and other short-term debt issues. See breakdown by type of debt (subordinated debt, senior unsecured debt, senior secured debt, notes and other securities) (see note 22). Annual report 2025800 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | 31 December 2024 | | | | | | | | | EUR million | | | | | | | | | On demand | Within 3 months | 3 to 12 months | 1 to 3 years | 3 to 5 years | More than 5 years | Total | | Assets | | | | | | | | | Cash, cash balances at Central Banks and other deposits on demand | 192,208 | — | — | — | — | — | 192,208 | | Financial assets at fair value through other comprehensive income | — | 13,401 | 9,153 | 23,902 | 8,905 | 32,344 | 87,705 | | Debt securities | — | 11,072 | 8,449 | 22,137 | 7,623 | 27,277 | 76,558 | | Loans and advances | — | 2,329 | 704 | 1,765 | 1,282 | 5,067 | 11,147 | | Credits institutions | — | 36 | — | 98 | 6 | 223 | 363 | | Customers | — | 2,293 | 704 | 1,667 | 1,276 | 4,844 | 10,784 | | Financial assets at amortized cost | 41,652 | 208,565 | 167,974 | 220,871 | 176,710 | 387,935 | 1,203,707 | | Debt securities | — | 9,628 | 14,041 | 17,071 | 22,705 | 57,504 | 120,949 | | Loans and advances | 41,652 | 198,937 | 153,933 | 203,800 | 154,005 | 330,431 | 1,082,758 | | Central banks | — | 15,067 | — | — | — | 1,112 | 16,179 | | Credits institutions | 6,208 | 23,550 | 4,166 | 5,760 | 1,843 | 14,010 | 55,537 | | Customers | 35,444 | 160,320 | 149,767 | 198,040 | 152,162 | 315,309 | 1,011,042 | | | 233,860 | 221,966 | 177,127 | 244,773 | 185,615 | 420,279 | 1,483,620 | | Liabilities | | | | | | | | | Financial liabilities at amortized cost | 720,659 | 256,651 | 171,362 | 155,620 | 89,229 | 90,801 | 1,484,322 | | Deposits | 707,418 | 213,220 | 121,914 | 46,431 | 21,510 | 15,946 | 1,126,439 | | Central banks | 17 | 9,063 | 11,022 | 4,772 | — | 8 | 24,882 | | Credit institutions | 13,948 | 27,149 | 19,300 | 15,655 | 6,477 | 7,483 | 90,012 | | Customer deposits | 693,453 | 177,008 | 91,592 | 26,004 | 15,033 | 8,455 | 1,011,545 | | Marketable debt securitiesA | — | 35,570 | 47,977 | 100,451 | 60,128 | 73,841 | 317,967 | | Other financial liabilities | 13,241 | 7,861 | 1,471 | 8,738 | 7,591 | 1,014 | 39,916 | | | 720,659 | 256,651 | 171,362 | 155,620 | 89,229 | 90,801 | 1,484,322 | | Difference (assets less liabilities) | (486,799) | (34,685) | 5,765 | 89,153 | 96,386 | 329,478 | (702) | A. Includes promissory notes, certificates of deposit and other short-term debt issues. Annual report 2025801 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | 31 December 2023 | | | | | | | | | EUR million | | | | | | | | | On demand | Within 3 months | 3 to 12 months | 1 to 3 years | 3 to 5 years | More than 5 years | Total | | Assets | | | | | | | | | Cash, cash balances at Central Banks and other deposits on demand | 220,342 | — | — | — | — | — | 220,342 | | Financial assets at fair value through other comprehensive income | — | 13,544 | 9,234 | 19,372 | 14,162 | 25,235 | 81,547 | | Debt securities | — | 13,078 | 8,433 | 18,432 | 12,764 | 20,858 | 73,565 | | Loans and advances | — | 466 | 801 | 940 | 1,398 | 4,377 | 7,982 | | Customers | — | 466 | 801 | 940 | 1,085 | 4,377 | 7,669 | | Financial assets at amortized cost | 40,687 | 202,066 | 171,494 | 232,190 | 158,556 | 386,410 | 1,191,403 | | Debt securities | — | 12,281 | 14,114 | 18,608 | 11,281 | 47,275 | 103,559 | | Loans and advances | 40,687 | 189,785 | 157,380 | 213,582 | 147,275 | 339,135 | 1,087,844 | | Central banks | — | 18,730 | — | — | — | 1,352 | 20,082 | | Credit institutions | 6,783 | 26,671 | 6,313 | 7,151 | 1,521 | 9,478 | 57,917 | | Customers | 33,904 | 144,384 | 151,067 | 206,431 | 145,754 | 328,305 | 1,009,845 | | | 261,029 | 215,610 | 180,728 | 251,562 | 172,718 | 411,645 | 1,493,292 | | Liabilities | | | | | | | | | Financial liabilities at amortized cost | 711,093 | 246,898 | 182,516 | 161,784 | 88,527 | 77,885 | 1,468,703 | | Deposits | 697,339 | 210,538 | 118,035 | 61,332 | 22,161 | 15,903 | 1,125,308 | | Central banks | 168 | 20,224 | 6,941 | 16,846 | 4,581 | 22 | 48,782 | | Credit institutions | 6,572 | 25,990 | 21,390 | 13,434 | 5,963 | 7,897 | 81,246 | | Customer deposits | 690,599 | 164,324 | 89,704 | 31,052 | 11,617 | 7,984 | 995,280 | | Marketable debt securitiesA | — | 28,371 | 63,440 | 92,554 | 57,639 | 61,204 | 303,208 | | Other financial liabilities | 13,754 | 7,989 | 1,041 | 7,898 | 8,727 | 778 | 40,187 | | | 711,093 | 246,898 | 182,516 | 161,784 | 88,527 | 77,885 | 1,468,703 | | Difference (assets less liabilities) | (450,064) | (31,288) | (1,788) | 89,778 | 84,191 | 333,760 | 24,589 | A. Includes promissory notes, certificates of deposit and other short-term debt issues. Annual report 2025802 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The detail of the remaining contractual maturities of the existing financial liabilities at amortised cost at 31 December 2025 , 2024 and 2023 is as follows: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | 31 December 2025 | | | | | | | | | EUR million | | | | | | | | | On demand | Within 3 months | 3 to 12 months | 1 to 3 years | 3 to 5 years | More than 5 years | Total | | Financial liabilities at amortized cost | | | | | | | | | Deposits | 687,708 | 221,487 | 95,553 | 36,937 | 9,204 | 17,423 | 1,068,312 | | Central banks | 857 | 8,497 | 4,581 | 2,892 | — | 1,627 | 18,454 | | Credit institutions | 6,298 | 34,993 | 11,677 | 12,197 | 1,841 | 7,636 | 74,642 | | Customer | 680,553 | 177,997 | 79,295 | 21,848 | 7,363 | 8,160 | 975,216 | | Marketable debt securities | — | 37,742 | 47,782 | 93,250 | 62,071 | 66,107 | 306,952 | | Other financial liabilities | 11,790 | 8,855 | 2,848 | 1,018 | 557 | 11,029 | 36,097 | | | 699,498 | 268,084 | 146,183 | 131,205 | 71,832 | 94,559 | 1,411,361 | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | 31 December 2024 | | | | | | | | | EUR million | | | | | | | | | On demand | Within 3 months | 3 to 12 months | 1 to 3 years | 3 to 5 years | More than 5 years | Total | | Financial liabilities at amortized cost | | | | | | | | | Deposits | 699,007 | 207,554 | 117,431 | 43,090 | 19,248 | 15,796 | 1,102,126 | | Central banks | 17 | 9,082 | 11,026 | 4,772 | — | 7 | 24,904 | | Credit institutions | 13,634 | 27,170 | 19,258 | 15,674 | 6,482 | 7,462 | 89,680 | | Customer | 685,356 | 171,302 | 87,147 | 22,644 | 12,766 | 8,327 | 987,542 | | Marketable debt securities | — | 36,315 | 48,973 | 102,306 | 61,260 | 74,817 | 323,671 | | Other financial liabilities | 13,241 | 7,861 | 1,471 | 8,738 | 7,591 | 1,014 | 39,916 | | | 712,248 | 251,730 | 167,875 | 154,134 | 88,099 | 91,627 | 1,465,713 | . | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | 31 December 2023 | | | | | | | | | EUR million | | | | | | | | | On demand | Within 3 months | 3 to 12 months | 1 to 3 years | 3 to 5 years | More than 5 years | Total | | Financial liabilities at amortized cost | | | | | | | | | Deposits | 698,595 | 204,001 | 109,311 | 51,191 | 20,761 | 15,585 | 1,099,444 | | Central banks | 168 | 20,334 | 6,853 | 16,846 | 4,581 | 35 | 48,817 | | Credit institutions | 6,884 | 25,642 | 21,334 | 13,079 | 5,924 | 7,685 | 80,548 | | Customer | 691,543 | 158,025 | 81,124 | 21,266 | 10,256 | 7,865 | 970,079 | | Marketable debt securities | — | 28,258 | 62,935 | 91,492 | 56,944 | 60,166 | 299,795 | | Other financial liabilities | 13,666 | 8,078 | 1,041 | 7,898 | 8,727 | 777 | 40,187 | | | 712,261 | 240,337 | 173,287 | 150,581 | 86,432 | 76,528 | 1,439,426 | Annual report 2025803 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Below is a breakdown of contractual maturities for the rest of financial assets and liabilities as of 31 December 2025 , 2024 and 2023: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 31 December 2025 | | | | | | | | EUR million | | | | | | | | Within 3 months | 3 to 12 months | 1 to 3 years | 3 to 5 years | More than 5 years | Total | | FINANCIAL ASSETS | | | | | | | | Financial assets held for trading | 85,732 | 38,979 | 35,639 | 22,880 | 69,088 | 252,318 | | Derivatives | 15,579 | 4,967 | 13,348 | 10,446 | 14,015 | 58,355 | | Equity instruments | — | — | — | — | 22,030 | 22,030 | | Debt securities | 8,666 | 26,749 | 20,034 | 11,618 | 31,501 | 98,568 | | Loans and advances | 61,487 | 7,263 | 2,257 | 816 | 1,542 | 73,365 | | Central banks | 13,143 | 1,181 | 308 | — | — | 14,632 | | Credits institutions | 22,532 | 2,114 | 1,104 | 213 | 4 | 25,967 | | Customers | 25,812 | 3,968 | 845 | 603 | 1,538 | 32,766 | | Financial assets designated at fair value through profit or loss | 611 | 893 | 1,595 | 819 | 4,128 | 8,046 | | Debt securities | 333 | 480 | 1,032 | 394 | 655 | 2,894 | | Loans and advances | 278 | 413 | 563 | 425 | 3,473 | 5,152 | | Credit institutions | 20 | 1 | 9 | 30 | 353 | 413 | | Customers | 258 | 412 | 553 | 396 | 3,120 | 4,739 | | Non-trading financial assets mandatorily at fair value through profit or loss | 1,091 | 174 | 407 | — | 6,089 | 7,761 | | Equity instruments | | | | | 5,815 | 5,815 | | Debt securities | 34 | 9 | 93 | — | 109 | 245 | | Loans and advances | 1,057 | 165 | 314 | — | 165 | 1,701 | | Central banks | — | — | — | — | — | — | | Credits institutions | — | — | — | — | — | — | | Customers | 1,057 | 165 | 314 | — | 165 | 1,701 | | Financial assets at fair value through other comprehensive income | — | — | — | — | 2,281 | 2,281 | | Equity instruments | — | — | — | — | 2,281 | 2,281 | | Hedging derivatives | 1,066 | 293 | 609 | 440 | 1,523 | 3,931 | | Changes in the fair value of hedged items in portfolio hedges of interest rate risk | (22) | 63 | (17) | 72 | (46) | 50 | | TOTAL FINANCIAL ASSETS | 88,478 | 40,402 | 38,233 | 24,211 | 83,063 | 274,387 | Annual report 2025804 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 31 December 2025 | | | | | | | | EUR million | | | | | | | | Within 3 months | 3 to 12 months | 1 to 3 years | 3 to 5 years | More than 5 years | Total | | FINANCIAL LIABILITIES | | | | | | | | Financial liabilities held for trading | 131,052 | 5,783 | 14,084 | 10,642 | 9,985 | 171,546 | | Derivatives | 18,105 | 4,339 | 11,403 | 10,051 | 8,070 | 51,968 | | Shorts positions | 39,712 | 661 | 1,271 | 478 | 1,893 | 44,015 | | Deposits | 73,235 | 783 | 1,410 | 113 | 22 | 75,563 | | Central banks | 12,385 | — | — | — | — | 12,385 | | Credits institutions | 24,759 | 770 | 1,410 | 113 | 6 | 27,058 | | Customers | 36,091 | 13 | — | — | 16 | 36,120 | | Financial liabilities designated at fair value through profit or loss | 19,717 | 4,015 | 6,934 | 3,849 | 7,633 | 42,148 | | Deposits | 18,785 | 3,177 | 4,452 | 1,105 | 2,921 | 30,440 | | Central banks | 3,086 | — | — | — | — | 3,086 | | Credits institutions | 914 | 23 | 115 | 31 | 341 | 1,424 | | Customers | 14,785 | 3,154 | 4,337 | 1,074 | 2,580 | 25,930 | | Marketable debt securitiesA | 910 | 838 | 2,482 | 2,744 | 4,712 | 11,686 | | Other financial liabilities | 22 | — | — | — | — | 22 | | Hedging derivatives | 447 | 681 | 735 | 917 | 1,468 | 4,248 | | Changes in the fair value of hedged items in portfolio hedges of interest rate risk | (16) | 25 | 4 | 36 | — | 49 | | TOTAL FINANCIAL LIABILITIES | 151,200 | 10,504 | 21,757 | 15,444 | 19,086 | 217,991 | A. See breakdown by type of debt (subordinated debt, senior unsecured debt, senior secured debt, promissory notes and other securities) (see note 22). | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 31 December 2025 | | | | | | | | EUR million | | | | | | | | Within 3 months | 3 to 12 months | 1 to 3 years | 3 to 5 years | More than 5 years | Total | | Memorandum items | | | | | | | | Loans commitment granted | 146,340 | 31,411 | 45,392 | 58,085 | 40,006 | 321,234 | | Financial guarantees granted | 8,348 | 6,018 | 1,803 | 630 | 650 | 17,449 | | Other commitments granted | 102,278 | 21,002 | 11,820 | 3,643 | 9,375 | 148,118 | | MEMORANDUM ITEMS | 256,966 | 58,431 | 59,015 | 62,358 | 50,031 | 486,801 | In the Group’s experience, no outflows of cash or other financial assets take place prior to the contractual maturity date that might affect the information broken down above. Annual report 2025805 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 31 December 2024 | | | | | | | | EUR million | | | | | | | | Within 3 months | 3 to 12 months | 1 to 3 years | 3 to 5 years | More than 5 years | Total | | FINANCIAL ASSETS | | | | | | | | Financial assets held for trading | 64,300 | 56,571 | 33,945 | 24,504 | 50,933 | 230,253 | | Derivatives | 14,231 | 14,504 | 16,676 | 12,384 | 6,305 | 64,100 | | Equity instruments | — | — | — | — | 16,636 | 16,636 | | Debt securities | 6,930 | 21,305 | 15,319 | 11,944 | 27,148 | 82,646 | | Loans and advances | 43,139 | 20,762 | 1,950 | 176 | 844 | 66,871 | | Central banks | 1,241 | 11,725 | — | — | — | 12,966 | | Credits institutions | 21,840 | 4,088 | 1,287 | — | 99 | 27,314 | | Customers | 20,058 | 4,949 | 663 | 176 | 745 | 26,591 | | Financial assets designated at fair value through profit or loss | 152 | 750 | 2,421 | 1,075 | 3,517 | 7,915 | | Debt securities | 95 | 342 | 1,254 | 680 | 526 | 2,897 | | Loans and advances | 57 | 408 | 1,167 | 395 | 2,991 | 5,018 | | Central banks | — | — | — | — | — | — | | Credit institutions | 16 | — | 5 | 34 | 353 | 408 | | Customers | 41 | 408 | 1,162 | 361 | 2,638 | 4,610 | | Non-trading financial assets mandatorily at fair value through profit or loss | 794 | 8 | 29 | 102 | 5,197 | 6,130 | | Equity instruments | — | — | — | — | 4,641 | 4,641 | | Debt instruments | 39 | 2 | 3 | 10 | 393 | 447 | | Loans and advances | 755 | 6 | 26 | 92 | 163 | 1,042 | | Central banks | — | — | — | — | — | — | | Credits institutions | — | — | — | — | — | — | | Customers | 755 | 6 | 26 | 92 | 163 | 1,042 | | Financial assets at fair value through other comprehensive income | — | — | — | — | 2,193 | 2,193 | | Equity instruments | — | — | — | — | 2,193 | 2,193 | | Hedging derivatives | 1,786 | 1,423 | 957 | 800 | 706 | 5,672 | | Changes in the fair value of hedged items in portfolio hedges of interest rate risk | (61) | 18 | (569) | (50) | (42) | (704) | | TOTAL FINANCIAL ASSETS | 66,971 | 58,770 | 36,783 | 26,431 | 62,504 | 251,459 | Annual report 2025806 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 31 December 2024 | | | | | | | | EUR million | | | | | | | | Within 3 months | 3 to 12 months | 1 to 3 years | 3 to 5 years | More than 5 years | Total | | FINANCIAL LIABILITIES | | | | | | | | Financial liabilities held for trading | 100,071 | 16,537 | 14,244 | 12,530 | 8,769 | 152,151 | | Derivatives | 14,364 | 13,296 | 11,946 | 12,335 | 5,812 | 57,753 | | Shorts positions | 28,548 | 2,931 | 1,199 | 195 | 2,957 | 35,830 | | Deposits | 57,159 | 310 | 1,099 | — | — | 58,568 | | Central banks | 13,300 | — | — | — | — | 13,300 | | Credits institutions | 24,875 | 310 | 1,099 | — | — | 26,284 | | Customers | 18,984 | — | — | — | — | 18,984 | | Financial liabilities designated at fair value through profit or loss | 16,036 | 6,000 | 6,422 | 1,918 | 5,984 | 36,360 | | Deposits | 15,193 | 4,860 | 4,037 | 490 | 4,226 | 28,806 | | Central banks | 1,774 | — | — | — | — | 1,774 | | Credits institutions | 1,035 | 133 | 15 | 49 | 393 | 1,625 | | Customers | 12,384 | 4,727 | 4,022 | 441 | 3,833 | 25,407 | | Marketable debt securitiesA | 843 | 1,140 | 2,385 | 1,428 | 1,758 | 7,554 | | Hedging derivatives | 832 | 668 | 826 | 814 | 1,612 | 4,752 | | Changes in the fair value of hedged items in portfolio hedges of interest rate risk | — | (5) | 13 | 47 | (64) | (9) | | TOTAL FINANCIAL LIABILITIES | 116,939 | 23,200 | 21,505 | 15,309 | 16,301 | 193,254 | A. See breakdown by type of debt (subordinated debt, senior unsecured debt, senior secured debt, promissory notes and other securities) (see note 22). | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 31 December 2024 | | | | | | | | EUR million | | | | | | | | Within 3 months | 3 to 12 months | 1 to 3 years | 3 to 5 years | More than 5 years | Total | | Memorandum items | | | | | | | | Loans commitment granted | 133,084 | 35,747 | 57,157 | 57,285 | 19,588 | 302,861 | | Financial guarantees granted | 5,103 | 6,803 | 3,691 | 796 | 508 | 16,901 | | Other commitments granted | 92,172 | 20,681 | 13,197 | 5,032 | 3,411 | 134,493 | | MEMORANDUM ITEMS | 230,359 | 63,231 | 74,045 | 63,113 | 23,507 | 454,255 | Annual report 2025807 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 31 December 2023 | | | | | | | | EUR million | | | | | | | | Within 3 months | 3 to 12 months | 1 to 3 years | 3 to 5 years | More than 5 years | Total | | FINANCIAL ASSETS | | | | | | | | Financial assets held for trading | 36,120 | 49,668 | 30,602 | 17,912 | 42,619 | 176,921 | | Derivatives | 8,777 | 10,551 | 17,775 | 9,532 | 9,693 | 56,328 | | Equity instruments | — | — | — | — | 15,057 | 15,057 | | Debt securities | 7,598 | 18,315 | 10,274 | 8,137 | 17,800 | 62,124 | | Loans and advances | 19,745 | 20,802 | 2,553 | 243 | 69 | 43,412 | | Central banks | 1,146 | 16,571 | — | — | — | 17,717 | | Credits institutions | 10,861 | 2,076 | 1,079 | 45 | — | 14,061 | | Customers | 7,738 | 2,155 | 1,474 | 198 | 69 | 11,634 | | Financial assets designated at fair value through profit or loss | 1,657 | 557 | 2,529 | 1,350 | 3,680 | 9,773 | | Debt securities | 252 | 77 | 1,269 | 690 | 807 | 3,095 | | Loans and advances | 1,405 | 480 | 1,260 | 660 | 2,873 | 6,678 | | Credit institutions | 26 | 22 | 3 | 15 | 393 | 459 | | Customers | 1,379 | 458 | 1,257 | 645 | 2,480 | 6,219 | | Non-trading financial assets mandatorily at fair value through profit or loss | 591 | 153 | 71 | 80 | 5,015 | 5,910 | | Equity instruments | — | — | — | — | 4,068 | 4,068 | | Debt instruments | 41 | — | 57 | 3 | 759 | 860 | | Loans and advances | 550 | 153 | 14 | 77 | 188 | 982 | | Customers | 550 | 153 | 14 | 77 | 188 | 982 | | Financial assets at fair value through other comprehensive income | — | — | — | — | 1,761 | 1,761 | | Equity instruments | — | — | — | — | 1,761 | 1,761 | | Hedging derivatives | 1,188 | 412 | 1,535 | 937 | 1,225 | 5,297 | | Changes in the fair value of hedged items in portfolio hedges of interest rate risk | (237) | (225) | 156 | (402) | (80) | (788) | | TOTAL FINANCIAL ASSETS | 39,319 | 50,565 | 34,893 | 19,877 | 54,220 | 198,874 | Annual report 2025808 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 31 December 2023 | | | | | | | | EUR million | | | | | | | | Within 3 months | 3 to 12 months | 1 to 3 years | 3 to 5 years | More than 5 years | Total | | FINANCIAL LIABILITIES | | | | | | | | Financial liabilities held for trading | 73,257 | 12,127 | 19,180 | 10,591 | 7,115 | 122,270 | | Derivatives | 8,147 | 9,486 | 17,990 | 10,060 | 4,906 | 50,589 | | Shorts positions | 21,381 | 1,288 | 765 | 531 | 2,209 | 26,174 | | Deposits | 43,729 | 1,353 | 425 | — | — | 45,507 | | Central banks | 7,808 | — | — | — | — | 7,808 | | Credits institutions | 17,228 | 209 | 425 | — | — | 17,862 | | Customers | 18,693 | 1,144 | — | — | — | 19,837 | | Financial liabilities designated at fair value through profit or loss | 23,190 | 7,583 | 4,863 | 1,359 | 3,372 | 40,367 | | Deposits | 22,688 | 6,459 | 3,223 | 338 | 2,288 | 34,996 | | Central banks | 1,158 | 51 | — | — | — | 1,209 | | Credits institutions | 1,161 | 57 | 84 | 61 | 372 | 1,735 | | Customers | 20,369 | 6,351 | 3,139 | 277 | 1,916 | 32,052 | | Marketable debt securitiesA | 502 | 1,124 | 1,640 | 1,021 | 1,084 | 5,371 | | Hedging derivatives | 1,525 | 2,064 | 1,577 | 878 | 1,612 | 7,656 | | Changes in the fair value of hedged items in portfolio hedges of interest rate risk | (1) | (4) | 36 | (5) | 29 | 55 | | TOTAL FINANCIAL LIABILITIES | 97,971 | 21,770 | 25,656 | 12,823 | 12,128 | 170,348 | A. See breakdown by type of debt (subordinated debt, senior unsecured debt, senior secured debt, promissory notes and other securities) (see note 22). | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 31 December 2023 | | | | | | | | EUR million | | | | | | | | Within 3 months | 3 to 12 months | 1 to 3 years | 3 to 5 years | More than 5 years | Total | | Memorandum items | | | | | | | | Loans commitment granted | 125,083 | 31,658 | 55,344 | 47,204 | 20,300 | 279,589 | | Financial guarantees granted | 7,870 | 4,734 | 1,654 | 686 | 491 | 15,435 | | Other commitments granted | 81,146 | 17,448 | 9,699 | 3,386 | 1,594 | 113,273 | | MEMORANDUM ITEMS | 214,099 | 53,840 | 66,697 | 51,276 | 22,385 | 408,297 | Annual report 2025809 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### b) Equivalent euro value of assets and liabilities The detail of the main foreign currency balances in the consolidated balance sheet, based on the nature of the related items, is as follows: | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Equivalent value in EUR million | | | | | | | | | | | 2025 | | | 2024 | | | 2023 | | | Assets | Liabilities | | Assets | Liabilities | | Assets | Liabilities | | Cash, cash balances at central banks and other deposits on demand | 89,186 | — | | 109,932 | — | | 114,410 | — | | Financial assets/liabilities held for trading | 136,499 | 75,272 | | 130,076 | 76,216 | | 106,011 | 60,581 | | Non-trading financial assets mandatorily at fair value through profit or loss | 3,530 | — | | 3,208 | — | | 3,291 | — | | Other financial assets/liabilities at fair value through profit or loss | 666 | 14,943 | | 793 | 13,844 | | 1,721 | 12,699 | | Financial assets at fair value through other comprehensive income | 45,564 | — | | 60,861 | — | | 60,516 | — | | Financial assets at amortized cost | 745,401 | — | | 777,226 | — | | 773,504 | — | | Investments | 1,859 | — | | 2,103 | — | | 1,689 | — | | Tangible assets | 14,437 | — | | 18,812 | — | | 20,797 | — | | Intangible assets | 10,296 | — | | 12,282 | — | | 12,772 | — | | Financial liabilities at amortized cost | — | 854,517 | | — | 938,844 | | — | 937,917 | | Liabilities under insurance contracts | — | 227 | | — | 261 | | — | 330 | | OtherA | 96,469 | 82,901 | | 25,891 | 22,385 | | 26,236 | 25,740 | | | 1,143,907 | 1,027,860 | | 1,141,184 | 1,051,550 | | 1,120,947 | 1,037,267 | A. Includes the import of the Polish business held for sale. Annual report 2025810 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### c) Fair value of financial assets and liabilities not #### measured at fair value The fair value at year-end of the financial instruments (certain portfolios of loans and advances and debt securities, on the asset side, and deposits and debt securities, on the liability side) registered in the consolidated balance sheet at amortized cost is presented below: #### i) Financial assets measured at other than fair value | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | EUR million | | | | | | | | | | | | | | | | | | | | 2025 | | | | | | 2024 | | | | | | 2023 | | | | | | Assets | Carrying amount | Fair value | Level 1 | Level 2 | Level 3 | | Carrying amount | Fair value | Level 1 | Level 2 | Level 3 | | Carrying amount | Fair value | Level 1 | Level 2 | Level 3 | | Loans and advances | 1,062,675 | 1,062,981 | — | 113,004 | 949,977 | | 1,082,758 | 1,073,530 | — | 104,582 | 968,948 | | 1,087,844 | 1,077,543 | — | 103,414 | 974,129 | | Debt securities | 140,014 | 139,242 | 103,120 | 14,100 | 22,022 | | 120,949 | 119,539 | 87,170 | 13,149 | 19,220 | | 103,559 | 102,888 | 67,951 | 11,057 | 23,880 | | | 1,202,689 | 1,202,223 | 103,120 | 127,104 | 971,999 | | 1,203,707 | 1,193,069 | 87,170 | 117,731 | 988,168 | | 1,191,403 | 1,180,431 | 67,951 | 114,471 | 998,009 | #### ii) Financial liabilities measured at other than fair value | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | EUR million | | | | | | | | | | | | | | | | | | | | 2025 | | | | | | 2024 | | | | | | 2023 | | | | | | LiabilitiesA | Carrying amount | Fair value | Level 1 | Level 2 | Level 3 | | Carrying amount | Fair value | Level 1 | Level 2 | Level 3 | | Carrying amount | Fair value | Level 1 | Level 2 | Level 3 | | Deposits | 1,072,384 | 1,073,147 | — | 235,998 | 837,149 | | 1,126,439 | 1,125,532 | — | 250,440 | 875,092 | | 1,125,308 | 1,124,373 | — | 263,428 | 860,945 | | Debt securities | 312,704 | 314,173 | 162,382 | 115,597 | 36,194 | | 317,967 | 317,912 | 170,118 | 112,365 | 35,429 | | 303,208 | 298,792 | 136,109 | 125,575 | 37,108 | | | 1,385,088 | 1,387,320 | 162,382 | 351,595 | 873,343 | | 1,444,406 | 1,443,444 | 170,118 | 362,805 | 910,521 | | 1,428,516 | 1,423,165 | 136,109 | 389,003 | 898,053 | A. At 31 December 2025, Grupo Santander had other financial liabilities that amounted to EUR 36,096 million, EUR 39,916 million in 2024 and EUR 40,187 million in 2023. The main valuation methods and inputs used in the estimates at 31 December 2025 of the fair values of the financial assets and liabilities in the foregoing table were as follows: • Financial assets at amortised cost: the fair value was estimated using the present value method. The estimates were made considering factors such as the expected maturity of the portfolio, market interest rates, spreads on newly approved transactions or market spreads -when available-. • Financial liabilities at amortised cost: i) Deposits: the fair value of  short term  and on demand  deposits was taken to be their carrying amount. Factors such as the expected maturity of the transactions and the Group’s current cost of funding in similar transactions are consider for the estimation of long term deposits fair value. It had been used also current rates offered for deposits of similar remaining maturities. ii) Marketable debt securities and subordinated liabilities: the fair value was calculated based on market prices for these instruments -when available- or by the present value method using market interest rates and spreads, as well as using any significant input which is not observable with market data if applicable. iii) The fair value of cash, cash balances at central banks and other deposits on demand was taken to be their carrying amount since they are mainly short-term balances. Annual report 2025811 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### d) Offsetting of financial instruments Following is the detail of financial assets and liabilities that were offset in the consolidated balance sheets as of 31 December 2025 , 2024 and 2023: | | | | | | --- | --- | --- | --- | | | | | | | | 31 December 2025 | | | | | EUR million | | | | Assets | Gross amount of financial assets | Gross amount of financial assets offset in the balance sheet | Net amount of financial assets presented in the balance sheet | | Derivatives | 117,733 | (55,447) | 62,286 | | Reverse repurchase agreements | 217,509 | (76,535) | 140,974 | | Total | 335,242 | (131,982) | 203,260 | | | | | | | --- | --- | --- | --- | | | | | | | | 31 December 2024 | | | | | EUR million | | | | Assets | Gross amount of financial assets | Gross amount of financial assets offset in the balance sheet | Net amount of financial assets presented in the balance sheet | | Derivatives | 152,331 | (82,559) | 69,772 | | Reverse repurchase agreements | 189,034 | (67,488) | 121,546 | | Total | 341,365 | (150,047) | 191,318 | | | | | | | --- | --- | --- | --- | | | | | | | | 31 December 2023 | | | | | EUR million | | | | Assets | Gross amount of financial assets | Gross amount of financial assets offset in the balance sheet | Net amount of financial assets presented in the balance sheet | | Derivatives | 149,508 | (87,883) | 61,625 | | Reverse repurchase agreements | 179,580 | (79,500) | 100,080 | | Total | 329,088 | (167,383) | 161,705 | | | | | | | --- | --- | --- | --- | | | | | | | | 31 December 2025 | | | | | EUR million | | | | Liabilities | Gross amount of financial liabilities | Gross amount of financial liabilities offset in the balance sheet | Net amount of financial liabilities presented in the balance sheet | | Derivatives | 111,664 | (55,447) | 56,217 | | Reverse repurchase agreements | 246,961 | (76,535) | 170,426 | | Total | 358,625 | (131,982) | 226,643 | | | | | | | --- | --- | --- | --- | | | | | | | | 31 December 2024 | | | | | EUR million | | | | Liabilities | Gross amount of financial liabilities | Gross amount of financial liabilities offset in the balance sheet | Net amount of financial liabilities presented in the balance sheet | | Derivatives | 145,064 | (82,559) | 62,505 | | Reverse repurchase agreements | 223,141 | (67,488) | 155,653 | | Total | 368,205 | (150,047) | 218,158 | | | | | | | --- | --- | --- | --- | | | | | | | | 31 December 2023 | | | | | EUR million | | | | Liabilities | Gross amount of financial liabilities | Gross amount of financial liabilities offset in the balance sheet | Net amount of financial liabilities presented in the balance sheet | | Derivatives | 146,128 | (87,883) | 58,245 | | Reverse repurchase agreements | 212,840 | (79,500) | 133,340 | | Total | 358,968 | (167,383) | 191,585 | At 31 December 2025, Grupo Santander has offset other items amounting to EUR 632 million (EUR 811 million and EUR 910 million at 31 December 2024 and 2023, respectively). At 31 December 2025 the balance sheet shows the amounts EUR 192,621 million (EUR  176,198 million and EUR 151,044 million at 31 December 2024 and 2023) on derivatives and repos as assets and EUR 220,296 million (EUR 209,121 million and EUR 180,539 million at 31 December 2024 and 2023, respectively) on derivatives and repos as liabilities that are subject to netting and collateral arrangements. Annual report 2025812 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 52. #### Primary and secondary segments #### reporting Grupo Santander bases segment reporting on financial information presented to the chief operating decision maker, which excludes certain statutory results items that distort year-on-year comparisons and are not considered for management reporting. This financial information (underlying basis) is computed by adjusting reported results for the effects of certain gains and losses (e.g. capital gains, write-downs, impairment of goodwill, etc.). These gains and losses are items that management and investors ordinarily identify and consider separately to better understand the underlying trends in the business. Grupo Santander has aligned the information in this note with the underlying information used internally for management reporting and with that presented in Grupo Santander's other public documents. Grupo Santander executive committee has been selected to be its chief operating decision maker. Grupo Santander's operating segments reflect its organizational and managerial structures. Grupo Santander 's executive committee reviews internal reporting based on these segments to assess performance and allocate resources. The segments are split by global business and country in which profits are earned. Santander prepares the information by aggregating the figures for Grupo Santander’s global businesses and countries, relating it to both the accounting data of the business units integrated in each segment and that provided by management information systems. The same general principles as those used in Grupo Santander are applied. The main changes, which have been applied to management information for all periods included in the annual accounts, relate to the following: 1. Investment platforms (Investment Platforms Unit) and certain stakes in companies, mainly in the real estate sector, that were previously recorded in Retail & Commercial Banking or Corporate & Investment Banking have been incorporated into Wealth Management & Insurance. Grupo Santander have therefore incorporated a new vertical, Portfolio Investments, focusing on the management of said investment platforms and stakes that complement Wealth's traditional business. 2. Some profit sharing criteria between Retail & Commercial Banking and Cards have been improved, aligning criteria across the Group. 3. Grupo Santander has completed the usual annual adjustment of the perimeter of the Global Customer Relationship Model between Retail & Commercial Banking and Corporate & Investment Banking and between Retail & Commercial Banking and Wealth Management & Insurance. 4. In secondary segments, the board of directors approved the dissolution of the regional structures. As a result, the Group will no longer report regional information and the secondary segments are structured into the 10 main units (nine countries and DCB Europe), the Corporate Centre and 'Rest of the Group', which includes everything that is not already included in the mentioned units. The above-mentioned changes have no impact on the Group’s reported consolidated financial statements. #### a) Primary segments This primary level of segmentation, which is based on the Group’s management structure, comprises six reportable segments: five operating areas plus the Corporate Centre. The operating areas are: • Retail & Commercial Banking (Retail): area that integrates the retail banking and commercial banking business (individuals, SMEs and corporates), except private banking clients and business originated in the consumer finance and the cards businesses. Detailed financial information is provided on Spain (Retail Spain), the UK (Retail UK), Mexico (Retail Mexico) and Brazil (Retail Brazil), which represent the majority of the total Retail business. • Digital Consumer Bank (Consumer): comprises all business originated in the consumer finance companies, plus Openbank, Open Digital Services (ODS) and SBNA Consumer. Detailed financial information is provided on Europe (DCB Europe) and US (DCB US). • Corporate & Investment Banking (CIB): this business, which includes Global Transactional Banking, Global Banking (Global Debt Finance and Corporate Finance) and Global Markets, offers products and services on a global scale to corporate and institutional customers, and collaborates with other global businesses to better serve our broad customer base. • Wealth Management & Insurance (Wealth): includes the corporate unit of Private Banking and International Private Banking in Miami and Switzerland (Santander Private Banking), the asset management business (Santander Asset Management), the insurance business (Santander Insurance) and the unit that manages the investment platforms and stakes that complement Wealth's traditional business (the new vertical, Portfolio Investments). • Payments: comprises the Group's digital payments solutions, providing global technology solutions for the banks and new customers in the open market. It is structured in two businesses: PagoNxt (Getnet, Ebury and PagoNxt Payments) and Cards (cards platform and business in the countries where Group operates). In addition to these operating units, both primary and secondary, Grupo Santander continues to maintain the area of Corporate Centre, that includes the centralized activities relating to equity stakes in financial companies, financial management of the structural exchange rate position, assumed within the sphere of Grupo Santander’s assets and liabilities committee, as well as management of liquidity and of shareholders’ equity via issuances. As Grupo Santander’s holding entity, this area manages all capital and reserves and allocations of capital and liquidity with the rest of businesses. It also incorporates amortization of goodwill but not the costs related to the Grupo Santander’s central services (charged to the areas), except for corporate and institutional expenses related to the Grupo Santander’s functioning. There are no customers located in any of the areas that generate income exceeding 10% of Total income. The main masses of the balance sheets of the different segments, summarized, are indicated below: Annual report 2025813 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | EUR million | | | | | | | | | | 2025 | | | | | | | | Balance sheet (condensed) | Retail & Commercial Banking | Digital Consumer Bank | Corporate & Investment Banking | Wealth Management & Insurance | Payments | Corporate Centre | Total | | Loans and advances to customers | 604,870 | 203,857 | 210,245 | 26,585 | 24,469 | 6,289 | 1,076,315 | | Customer deposits | 674,133 | 129,946 | 224,981 | 63,964 | 1,415 | 1,387 | 1,095,827 | | Memorandum items | | | | | | | | | Gross loans and advances to customersA | 600,686 | 211,894 | 151,894 | 26,749 | 26,618 | 6,349 | 1,024,191 | | Customers funds | 777,742 | 138,999 | 152,903 | 189,870 | 1,415 | 1,387 | 1,262,315 | | Customer depositsB | 662,388 | 129,909 | 140,438 | 62,888 | 1,415 | 1,387 | 998,425 | | Investment funds | 115,354 | 9,089 | 12,465 | 126,982 | — | — | 263,889 | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | EUR million | | | | | | | | | | 2024 | | | | | | | | Balance sheet (condensed) | Retail & Commercial Banking | Digital Consumer Bank | Corporate & Investment Banking | Wealth Management & Insurance | Payments | Corporate Centre | Total | | Loans and advances to customers | 608,828 | 207,107 | 184,834 | 24,526 | 22,995 | 5,778 | 1,054,069 | | Customer deposits | 660,748 | 128,975 | 202,360 | 61,337 | 1,086 | 1,430 | 1,055,936 | | Memorandum items | | | | | | | | | Gross loans and advances to customersA | 609,372 | 215,164 | 136,697 | 24,691 | 24,768 | 5,853 | 1,016,546 | | Customers funds | 748,855 | 137,122 | 150,736 | 172,243 | 1,086 | 1,299 | 1,211,342 | | Customer depositsB | 649,214 | 128,933 | 136,677 | 60,409 | 1,086 | 1,299 | 977,620 | | Investment funds | 99,641 | 8,189 | 14,059 | 111,833 | — | — | 233,722 | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | EUR million | | | | | | | | | | 2023 | | | | | | | | Balance sheet (condensed) | Retail & Commercial Banking | Digital Consumer Bank | Corporate & Investment Banking | Wealth Management & Insurance | Payments | Corporate Centre | Total | | Loans and advances to customers | 618,113 | 199,158 | 168,960 | 22,509 | 22,045 | 5,565 | 1,036,349 | | Customer deposits | 666,578 | 115,446 | 203,713 | 58,507 | 1,418 | 1,508 | 1,047,169 | | Memorandum items | | | | | | | | | Gross loans and advances to customersA | 618,773 | 206,649 | 137,578 | 22,603 | 23,709 | 5,640 | 1,014,951 | | Customers funds | 725,971 | 120,996 | 169,839 | 157,142 | 1,418 | 1,508 | 1,176,874 | | Customer depositsB | 638,169 | 114,334 | 155,274 | 57,643 | 1,418 | 1,508 | 968,346 | | Investment funds | 87,802 | 6,662 | 14,565 | 99,499 | — | — | 208,528 | A. Excluding reverse repos. B. Excluding repos. Note: 'Loans and advances to customers', 'Customer Deposits' and 'Customer funds' figures have been calculated including Poland. Annual report 2025814 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The condensed income statements for the primary segments are as follows: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | EUR million | | | | | | | | | | 2025 | | | | | | | | Underlying income statement (condensed) | Retail & Commercial Banking | Digital Consumer Bank | Corporate & Investment Banking | Wealth Management & Insurance | Payments | Corporate Centre | Total | | Net interest incomeA | 26,409 | 11,036 | 4,047 | 1,445 | 2,907 | (490) | 45,354 | | Net fee income | 4,784 | 1,479 | 2,713 | 1,703 | 3,008 | (27) | 13,661 | | Gains (losses) on financial transactionsB | 617 | (11) | 1,358 | 512 | 44 | (82) | 2,436 | | Other operating incomeC | (594) | 511 | 370 | 579 | 55 | 18 | 940 | | Total income | 31,216 | 13,015 | 8,488 | 4,239 | 6,013 | (581) | 62,390 | | Administrative expenses, depreciation and amortisation | (12,314) | (5,287) | (3,866) | (1,497) | (2,360) | (402) | (25,725) | | Net operating incomeD | 18,902 | 7,728 | 4,622 | 2,742 | 3,654 | (983) | 36,665 | | Net loan-loss provisionsE | (5,416) | (4,457) | (291) | (22) | (2,027) | (198) | (12,411) | | Other gains (losses) and provisionsF | (2,320) | (704) | (121) | (7) | (140) | (94) | (3,387) | | Operating profit/(loss) before tax | 11,167 | 2,566 | 4,210 | 2,713 | 1,486 | (1,275) | 20,867 | | Tax on profit | (2,812) | (489) | (1,171) | (555) | (503) | 190 | (5,341) | | Profit from continuing operations | 8,354 | 2,077 | 3,039 | 2,158 | 984 | (1,085) | 15,526 | | Net profit from discontinued operations | — | — | — | — | — | — | — | | Consolidated profit | 8,354 | 2,077 | 3,039 | 2,158 | 984 | (1,085) | 15,526 | | Non-controlling interests | (689) | (336) | (205) | (95) | (101) | — | (1,425) | | Attributable profit to the parent | 7,666 | 1,741 | 2,834 | 2,063 | 883 | (1,085) | 14,101 | A. Net interest income includes the net amount of the profit and loss account items 'Interest income' and 'Interest expense'. It is presented this way because it is how it is presented to the main operational decision maker. B. Gains (losses) on financial transactions includes the following line items in the statutory income statement, which are presented net for internal reporting and management reporting purposes: Gain or losses on financial assets and liabilities not measured at fair value through profit or loss, net, Gain or losses on financial assets and liabilities held for trading, net, Gains or losses on non-trading financial assets and liabilities mandatorily at fair value through profit or loss, net, Gain or losses on financial assets and liabilities measured at fair value through profit or loss, net, Gain or losses from hedge accounting, net and Exchange differences, net. C. Other operating income includes the following line items in the statutory income statement, which are presented net for internal reporting and management reporting purposes: Dividend income; Income from companies accounted for using the equity method, Other operating income, Other operating expenses, Income from assets under insurance or reinsurance contracts and Expenses from liabilities under insurance or reinsurance contracts. D. Net Operating Income is used for the Group’s internal reporting and management reporting purposes but is not a line item in the statutory consolidated income statement. E. Net loan-loss provisions refers to Impairment or reversal of impairment at financial assets not measured at fair value through profit or loss and net gains and losses from changes line item in the statutory income statement. Additionally, includes an addition of EUR 47 million mainly corresponding to the results by commitments and contingent risks includes in the line of the statutory income statement of provisions or reversal of provisions. F. Other gains (losses) and provisions includes the following line items in the statutory income statement, which are presented net for internal reporting and management reporting purposes: Provisions or reversal of provisions except an addition EUR 47 million mainly corresponding to the results by commitments and contingent risks; Impairment of investments in joint ventures and associates, net; Impairment on non-financial assets, net; Gains or losses on non-financial assets, net; Negative goodwill recognised in results and Gains or losses on non-current assets held for sale not classified as discontinued operations. Note: 'Loans and advances to customers', 'Customer Deposits' and 'Customer funds' figures have been calculated including Poland. Annual report 2025815 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | EUR million | | | | | | | | | | 2024 | | | | | | | | Underlying income statement (condensed) | Retail & Commercial Banking | Digital Consumer Bank | Corporate & Investment Banking | Wealth Management & Insurance | Payments | Corporate Centre | Total | | Net interest incomeA | 27,937 | 10,777 | 3,988 | 1,706 | 2,567 | (308) | 46,668 | | Net fee income | 4,707 | 1,508 | 2,548 | 1,497 | 2,759 | (11) | 13,010 | | Gains (losses) on financial transactionsB | 738 | (4) | 1,629 | 257 | 61 | (408) | 2,273 | | Other operating incomeC | (1,008) | 631 | 172 | 343 | 72 | 51 | 261 | | Total income | 32,374 | 12,912 | 8,338 | 3,803 | 5,459 | (676) | 62,211 | | Administrative expenses, depreciation and amortisation | (12,796) | (5,183) | (3,794) | (1,452) | (2,430) | (379) | (26,034) | | Net operating incomeD | 19,578 | 7,729 | 4,544 | 2,351 | 3,030 | (1,055) | 36,177 | | Net loan-loss provisionsE | (5,846) | (4,562) | (171) | (44) | (1,714) | 3 | (12,333) | | Other gains (losses) and provisionsF | (2,875) | (939) | (354) | (23) | (360) | (265) | (4,816) | | Operating profit/(loss) before tax | 10,857 | 2,228 | 4,019 | 2,284 | 955 | (1,317) | 19,027 | | Tax on profit | (3,088) | (294) | (1,068) | (534) | (462) | 162 | (5,284) | | Profit from continuing operations | 7,769 | 1,934 | 2,951 | 1,750 | 493 | (1,155) | 13,744 | | Net profit from discontinued operations | — | — | — | — | — | — | — | | Consolidated profit | 7,769 | 1,934 | 2,951 | 1,750 | 493 | (1,155) | 13,744 | | Non-controlling interests | (522) | (275) | (204) | (79) | (90) | 1 | (1,169) | | Attributable profit to the parent | 7,247 | 1,659 | 2,747 | 1,671 | 404 | (1,154) | 12,574 | A. Net interest income includes the net amount of the profit and loss account items 'Interest income' and 'Interest expense'. It is presented this way because it is how it is presented to the main operational decision maker. B. Gains (losses) on financial transactions includes the following line items in the statutory income statement, which are presented net for internal reporting and management reporting purposes: Gain or losses on financial assets and liabilities not measured at fair value through profit or loss, net, Gain or losses on financial assets and liabilities held for trading, net, Gains or losses on non-trading financial assets and liabilities mandatorily at fair value through profit or loss, net, Gain or losses on financial assets and liabilities measured at fair value through profit or loss, net, Gain or losses from hedge accounting, net and Exchange differences, net. C. Other operating income includes the following line items in the statutory income statement, which are presented net for internal reporting and management reporting purposes: Dividend income; Income from companies accounted for using the equity method, Other operating income, Other operating expenses, Income from assets under insurance or reinsurance contracts and Expenses from liabilities under insurance or reinsurance contracts. D. 'Net Operating Income is used for the Group’s internal reporting and management reporting purposes but is not a line item in the statutory consolidated income statement. E. 'Net Loan loss provisions' refers to Impairment or reversal of impairment at financial assets not measured at fair value through profit or loss and net gains and losses from changes line item in the statutory income statement. Additionally, includes an addition of EUR 41 million mainly corresponding to the results by commitments and contingent risks includes in the line of the statutory income statement of provisions or reversal of provisions. F. Other gains (losses) and provisions includes the following line items in the statutory income statement, which are presented net for internal reporting and management reporting purposes: Provisions or reversal of provisions except an addition of EUR 41 million  mainly corresponding to the results by commitments and contingent risks; Impairment of investments in joint ventures and associates, net; Impairment on non-financial assets, net; Gains or losses on non-financial assets, net; Negative goodwill recognised in results and Gains or losses on non-current assets held for sale not classified as discontinued operations. Annual report 2025816 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | EUR million | | | | | | | | | | 2023 | | | | | | | | Underlying income statement (condensed) | Retail & Commercial Banking | Digital Consumer Bank | Corporate & Investment Banking | Wealth Management & Insurance | Payments | Corporate Centre | Total | | Net interest incomeA | 25,550 | 10,221 | 3,594 | 1,513 | 2,424 | (41) | 43,261 | | Net fee income | 4,497 | 1,229 | 2,131 | 1,262 | 2,952 | (13) | 12,057 | | Gains (losses) on financial transactionsB | 854 | 116 | 1,795 | 170 | 1 | (302) | 2,633 | | Other operating incomeC | (1,146) | 730 | 7 | 266 | (79) | (83) | (304) | | Total income | 29,754 | 12,296 | 7,527 | 3,210 | 5,298 | (439) | 57,647 | | Administrative expenses, depreciation and amortisation | (12,825) | (5,263) | (3,387) | (1,216) | (2,344) | (391) | (25,425) | | Net operating incomeD | 16,930 | 7,033 | 4,140 | 1,994 | 2,954 | (829) | 32,222 | | Net loan-loss provisionsE | (6,540) | (4,106) | (165) | 17 | (1,666) | 2 | (12,458) | | Other gains (losses) and provisionsF | (2,401) | (250) | (181) | (18) | (84) | (134) | (3,066) | | Operating profit/(loss) before tax | 7,989 | 2,677 | 3,795 | 1,994 | 1,205 | (961) | 16,698 | | Tax on profit | (1,927) | (426) | (1,137) | (454) | (509) | (36) | (4,489) | | Profit from continuing operations | 6,062 | 2,251 | 2,658 | 1,540 | 696 | (998) | 12,209 | | Net profit from discontinued operations | — | — | — | — | — | — | — | | Consolidated profit | 6,062 | 2,251 | 2,658 | 1,540 | 696 | (998) | 12,209 | | Non-controlling interests | (403) | (350) | (219) | (73) | (89) | — | (1,133) | | Attributable profit to the parent | 5,659 | 1,901 | 2,440 | 1,467 | 607 | (998) | 11,076 | A. Net interest income includes the net amount of the profit and loss account items 'Interest income' and 'Interest expense'. It is presented this way because it is how it is presented to the main operational decision maker. B. Gains (losses) on financial transactions includes the following line items in the statutory income statement, which are presented net for internal reporting and management reporting purposes: Gain or losses on financial assets and liabilities not measured at fair value through profit or loss, net, Gain or losses on financial assets and liabilities held for trading, net, Gains or losses on non-trading financial assets and liabilities mandatorily at fair value through profit or loss, net, Gain or losses on financial assets and liabilities measured at fair value through profit or loss, net, Gain or losses from hedge accounting, net and Exchange differences, net. C. Other operating income includes the following line items in the statutory income statement, which are presented net for internal reporting and management reporting purposes: Dividend income; Income from companies accounted for using the equity method, Other operating income, Other operating expenses, Income from assets under insurance or reinsurance contracts and Expenses from liabilities under insurance or reinsurance contracts. D. Net Operating Income is used for the Group’s internal reporting and management reporting purposes but is not a line item in the statutory consolidated income statement. E. Net loan-loss provisions refers to Impairment or reversal of impairment at financial assets not measured at fair value through profit or loss and net gains and losses from changes line item in the statutory income statement. Additionally, includes a release of EUR 24 million mainly corresponding to the results by commitments and contingent risks includes in the line of the statutory income statement of provisions or reversal of provisions. F. Other gains (losses) and provisions includes the following line items in the statutory income statement, which are presented net for internal reporting and management reporting purposes: Provisions or reversal of provisions except a release of EUR 24 million mainly corresponding to the results by commitments and contingent risks; Impairment of investments in joint ventures and associates, net; Impairment on non-financial assets, net; Gains or losses on non-financial assets, net; Negative goodwill recognised in results and Gains or losses on non-current assets held for sale not classified as discontinued operations. Annual report 2025817 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### b) Secondary segments Grupo Santander proceeded to the dissolution of the regional management structures at the beginning of 2025, including at this secondary level the main geographical units. Detailed financial information is provided on Spain, the UK, Portugal, Poland, DCB Europe, which includes Santander Consumer Finance (the entire consumer finance business in Europe), Openbank in Europe and ODS, the US, which includes the holding company (SHUSA) and the businesses of Santander Bank (SBNA), Santander Consumer USA (SC USA), the specialized business unit Banco Santander International, the New York branch and Santander US Capital Markets (SanCap), Mexico, Brazil, Chile and Argentina. Information is also provided on the Corporate Centre and 'Rest of the Group', which brings together everything that is not included in the aforementioned geographical units or the Corporate Centre. With regard to the balance sheet, due to the required segregation of the various business units (included in a single consolidated balance sheet), the amounts lent and borrowed between the units are shown as increases in the assets and liabilities of each business. These amounts relating to intra-Group liquidity are eliminated and are shown in the Intra-Group eliminations column in the table below in order to reconcile the amounts contributed by each business unit to the consolidated Grupo Santander's balance sheet. There are no customers located in a place different from the location of the Group's assets that generate revenues in excess of 10% of ordinary revenues. The main masses of the balance sheets of the different secondary segments, summarized, are indicated below: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | EUR million | | | | | | | | | | 2025 | | | | | | | | Balance sheet (condensed) | Spain | United Kingdom | Portugal | Poland | DCB Europe | United States | Mexico | | Loans and advances to customers | 264,950 | 242,624 | 41,260 | 40,203 | 139,322 | 132,659 | 48,083 | | Customer deposits | 354,943 | 225,708 | 40,576 | 54,627 | 82,359 | 122,000 | 55,595 | | Memorandum items | | | | | | | | | Gross loans and advances to customersA | 237,385 | 228,273 | 41,980 | 40,913 | 142,477 | 108,950 | 49,442 | | Customers funds | 429,464 | 227,159 | 46,201 | 62,518 | 87,559 | 103,178 | 68,201 | | Customer depositsB | 322,070 | 219,440 | 40,576 | 54,017 | 82,359 | 87,686 | 45,498 | | Investment funds | 107,394 | 7,719 | 5,625 | 8,501 | 5,200 | 15,492 | 22,703 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | | | | | | | 2025 | | | | | | | Balance sheet (condensed) | Brazil | Chile | Argentine | Corporate Center | Rest of the Group | Total | | Loans and advances to customers | 87,653 | 39,924 | 8,032 | 6,289 | 25,316 | 1,076,315 | | Customer deposits | 92,256 | 29,503 | 9,959 | 1,387 | 26,913 | 1,095,827 | | Memorandum items | | | | | | | | Gross loans and advances to customersA | 93,030 | 40,986 | 8,611 | 6,349 | 25,795 | 1,024,191 | | Customers funds | 132,581 | 42,256 | 15,893 | 1,387 | 45,917 | 1,262,315 | | Customer depositsB | 80,449 | 28,293 | 9,959 | 1,387 | 26,691 | 998,425 | | Investment funds | 52,132 | 13,963 | 5,934 | — | 19,226 | 263,889 | Annual report 2025818 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | EUR million | | | | | | | | | | 2024 | | | | | | | | Balance sheet (condensed) | Spain | United Kingdom | Portugal | Poland | DCB Europe | United States | Mexico | | Loans and advances to customers | 246,897 | 246,453 | 38,410 | 38,042 | 137,038 | 134,856 | 45,054 | | Customer deposits | 323,425 | 230,408 | 38,304 | 50,331 | 81,376 | 125,403 | 49,836 | | Memorandum items | | | | | | | | | Gross loans and advances to customersA | 225,759 | 236,496 | 39,143 | 38,729 | 139,927 | 117,511 | 44,715 | | Customers funds | 399,998 | 230,478 | 43,186 | 56,581 | 85,876 | 108,247 | 61,160 | | Customer depositsB | 306,389 | 222,835 | 38,304 | 50,086 | 81,376 | 93,545 | 41,528 | | Investment funds | 93,609 | 7,643 | 4,882 | 6,495 | 4,500 | 14,702 | 19,632 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | | | | | | | 2024 | | | | | | | Balance sheet (condensed) | Brazil | Chile | Argentine | Corporate Center | Rest of the Group | Total | | Loans and advances to customers | 88,620 | 40,332 | 7,684 | 5,778 | 24,906 | 1,054,069 | | Customer deposits | 93,994 | 30,181 | 11,293 | 1,430 | 19,955 | 1,055,936 | | Memorandum items | | | | | | | | Gross loans and advances to customersA | 93,785 | 41,405 | 7,938 | 5,853 | 25,285 | 1,016,546 | | Customers funds | 129,881 | 43,384 | 17,047 | 1,299 | 34,205 | 1,211,342 | | Customer depositsB | 81,378 | 30,060 | 11,293 | 1,299 | 19,527 | 977,620 | | Investment funds | 48,503 | 13,324 | 5,754 | — | 14,678 | 233,722 | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | EUR million | | | | | | | | | | 2023 | | | | | | | | Balance sheet (condensed) | Spain | United Kingdom | Portugal | Poland | DCB Europe | United States | Mexico | | Loans and advances to customers | 239,214 | 245,743 | 36,864 | 33,850 | 132,692 | 126,843 | 47,905 | | Customer deposits | 324,099 | 233,453 | 36,366 | 44,500 | 69,334 | 121,782 | 53,703 | | Memorandum items | | | | | | | | | Gross loans and advances to customersA | 229,803 | 235,111 | 37,658 | 34,729 | 135,202 | 112,671 | 48,688 | | Customers funds | 386,810 | 231,668 | 40,618 | 49,371 | 72,963 | 108,061 | 62,775 | | Customer depositsB | 308,745 | 224,396 | 36,366 | 44,462 | 69,334 | 95,697 | 45,693 | | Investment funds | 78,065 | 7,272 | 4,252 | 4,909 | 3,629 | 12,364 | 17,082 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | | | | | | | 2023 | | | | | | | Balance sheet (condensed) | Brazil | Chile | Argentine | Corporate Center | Rest of the Group | Total | | Loans and advances to customers | 96,399 | 42,616 | 3,767 | 5,565 | 24,890 | 1,036,349 | | Customer deposits | 110,162 | 29,578 | 6,478 | 1,508 | 16,206 | 1,047,169 | | Memorandum items | | | | | | | | Gross loans and advances to customersA | 102,583 | 43,823 | 3,878 | 5,640 | 25,165 | 1,014,951 | | Customers funds | 145,044 | 40,098 | 10,288 | 1,508 | 27,670 | 1,176,874 | | Customer depositsB | 90,297 | 29,337 | 6,478 | 1,508 | 16,033 | 968,346 | | Investment funds | 54,747 | 10,761 | 3,810 | — | 11,637 | 208,528 | A. Excluding reverse repos. B. Excluding repos. Annual report 2025819 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The condensed income statements are as follows: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | EUR million | | | | | | | | | | 2025 | | | | | | | | Underlying income statement (condensed) | Spain | United Kingdom | Portugal | Poland | DCB Europe | United States | Mexico | | Net interest incomeA | 7,305 | 5,008 | 1,346 | 2,953 | 4,685 | 5,888 | 4,554 | | Net fee income | 3,022 | 369 | 506 | 733 | 804 | 1,328 | 1,454 | | Gains (losses) on financial transactionsB | 841 | (100) | 70 | 82 | (39) | 547 | 427 | | Other operating incomeC | 822 | 3 | 37 | (44) | 475 | 166 | (130) | | Total income | 11,990 | 5,280 | 1,959 | 3,724 | 5,925 | 7,929 | 6,305 | | Administrative expenses, depreciation and amortisation | (4,284) | (2,771) | (548) | (1,036) | (2,611) | (3,812) | (2,620) | | Net operating incomeD | 7,706 | 2,509 | 1,411 | 2,687 | 3,314 | 4,116 | 3,685 | | Net loan-loss provisionsE | (1,142) | (177) | 8 | (283) | (1,363) | (2,244) | (1,239) | | Other gains (losses) and provisionsF | (482) | (539) | (2) | (473) | (554) | (124) | (110) | | Operating profit/(loss) before tax | 6,083 | 1,794 | 1,417 | 1,930 | 1,398 | 1,748 | 2,336 | | Tax on profit | (1,811) | (486) | (405) | (402) | (322) | (207) | (627) | | Profit/(loss) from continuing operations | 4,272 | 1,307 | 1,011 | 1,528 | 1,076 | 1,541 | 1,709 | | Net profit/(loss) from discontinued operations | — | — | — | — | — | — | — | | Consolidated profit/(loss) | 4,272 | 1,307 | 1,011 | 1,528 | 1,076 | 1,541 | 1,709 | | Non-controlling interests | — | — | (2) | (580) | (304) | — | (4) | | Attributable profit/(loss) to the parent | 4,272 | 1,307 | 1,010 | 949 | 772 | 1,541 | 1,705 | Annual report 2025820 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | | | | | | | 2025 | | | | | | | Underlying income statement (condensed) | Brazil | Chile | Argentina | Corporate Centre | Rest of the Group | Total Group | | Net interest incomeA | 9,380 | 1,917 | 1,727 | (490) | 1,081 | 45,354 | | Net fee income | 3,193 | 582 | 788 | (27) | 908 | 13,661 | | Gains (losses) on financial transactionsB | (64) | 230 | 229 | (82) | 295 | 2,436 | | Other operating incomeC | 93 | (15) | (509) | 18 | 24 | 940 | | Total income | 12,602 | 2,714 | 2,235 | (581) | 2,308 | 62,390 | | Administrative expenses, depreciation and amortisation | (4,109) | (912) | (964) | (402) | (1,656) | (25,725) | | Net operating incomeD | 8,493 | 1,802 | 1,271 | (983) | 654 | 36,665 | | Net loan-loss provisionsE | (4,409) | (531) | (574) | (198) | (259) | (12,411) | | Other gains (losses) and provisionsF | (859) | (39) | (46) | (94) | (65) | (3,387) | | Operating profit/(loss) before tax | 3,224 | 1,232 | 650 | (1,275) | 330 | 20,867 | | Tax on profit | (836) | (189) | (216) | 190 | (30) | (5,341) | | Profit/(loss) from continuing operations | 2,388 | 1,043 | 434 | (1,085) | 302 | 15,526 | | Net profit/(loss) from discontinued operations | — | — | — | — | — | — | | Consolidated profit/(loss) | 2,388 | 1,043 | 434 | (1,085) | 302 | 15,526 | | Non-controlling interests | (220) | (314) | (1) | — | — | (1,425) | | Attributable profit/(loss) to the parent | 2,168 | 729 | 433 | (1,085) | 300 | 14,101 | A. Net interest income includes the net amount of the profit and loss account items 'Interest income' and 'Interest expense'. It is presented this way because it is how it is presented to the main operational decision maker. B. Gains (losses) on financial transactions includes the following line items in the statutory income statement, which are presented net for internal reporting and management reporting purposes: Gain or losses on financial assets and liabilities not measured at fair value through profit or loss, net, Gain or losses on financial assets and liabilities held for trading, net, Gains or losses on non-trading financial assets and liabilities mandatorily at fair value through profit or loss, net, Gain or losses on financial assets and liabilities measured at fair value through profit or loss, net, Gain or losses from hedge accounting, net and Exchange differences, net. C. Other operating income includes the following line items in the statutory income statement, which are presented net for internal reporting and management reporting purposes: Dividend income; Income from companies accounted for using the equity method, Other operating income, Other operating expenses, Income from assets under insurance or reinsurance contracts and Expenses from liabilities under insurance or reinsurance contracts. D. Net Operating Income is used for the Group’s internal reporting and management reporting purposes but is not a line item in the statutory consolidated income statement. E. Net loan-loss provisions refers to Impairment or reversal of impairment at financial assets not measured at fair value through profit or loss and net gains and losses from changes line item in the statutory income statement. Additionally, includes an addition of EUR 47 million mainly corresponding to the results by commitments and contingent risks included in the line provisions or reversal of provisions, net of the statutory income statement. F. Other gains (losses) and provisions includes the following line items in the statutory income statement, which are presented net for internal reporting and management reporting purposes: Provisions or reversal of provisions except an addition of EUR 47 million mainly corresponding to the results by commitments and contingent risks; Impairment of investments in joint ventures and associates, net; Impairment on non-financial assets, net; Gains or losses on non-financial assets, net; Negative goodwill recognized in results and Gains or losses on non-current assets held for sale not classified as discontinued operations. Annual report 2025821 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | EUR million | | | | | | | | | | 2024 | | | | | | | | Underlying income statement (condensed) | Spain | United Kingdom | Portugal | Poland | DCB Europe | United States | Mexico | | Net interest incomeA | 7,256 | 4,950 | 1,548 | 2,844 | 4,361 | 5,693 | 4,631 | | Net fee income | 2,867 | 283 | 467 | 674 | 902 | 1,152 | 1,385 | | Gains (losses) on financial transactionsB | 1,100 | (18) | 45 | 57 | (24) | 371 | 396 | | Other operating incomeC | 751 | 1 | 40 | (20) | 440 | 364 | (134) | | Total income | 11,974 | 5,216 | 2,100 | 3,555 | 5,679 | 7,580 | 6,278 | | Administrative expenses, depreciation and amortisation | (4,271) | (2,918) | (548) | (965) | (2,604) | (3,830) | (2,665) | | Net operating incomeD | 7,703 | 2,299 | 1,553 | 2,591 | 3,075 | 3,750 | 3,613 | | Net loan-loss provisionsE | (1,259) | (64) | (11) | (511) | (1,209) | (2,507) | (1,277) | | Other gains (losses) and provisionsF | (1,003) | (441) | (61) | (429) | (735) | (190) | (62) | | Operating profit/(loss) before tax | 5,440 | 1,794 | 1,481 | 1,650 | 1,131 | 1,053 | 2,274 | | Tax on profit | (1,678) | (488) | (478) | (431) | (255) | 56 | (598) | | Profit/(loss) from continuing operations | 3,763 | 1,306 | 1,003 | 1,219 | 876 | 1,109 | 1,676 | | Net profit/(loss) from discontinued operations | — | — | — | — | — | — | — | | Consolidated profit/(loss) | 3,763 | 1,306 | 1,003 | 1,219 | 876 | 1,109 | 1,676 | | Non-controlling interests | — | — | (2) | (419) | (234) | — | (5) | | Attributable profit/(loss) to the parent | 3,762 | 1,306 | 1,001 | 800 | 642 | 1,109 | 1,671 | Annual report 2025822 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | | | | | | | 2024 | | | | | | | Underlying income statement (condensed) | Brazil | Chile | Argentina | Corporate Centre | Rest of the Group | Total Group | | Net interest incomeA | 10,121 | 1,822 | 2,919 | (308) | 831 | 46,668 | | Net fee income | 3,414 | 551 | 602 | (11) | 723 | 13,010 | | Gains (losses) on financial transactionsB | (37) | 238 | 229 | (408) | 324 | 2,273 | | Other operating incomeC | 38 | (19) | (1,263) | 51 | 12 | 261 | | Total income | 13,536 | 2,592 | 2,487 | (676) | 1,890 | 62,211 | | Administrative expenses, depreciation and amortisation | (4,352) | (933) | (1,022) | (379) | (1,547) | (26,034) | | Net operating incomeD | 9,184 | 1,659 | 1,465 | (1,055) | 340 | 36,177 | | Net loan-loss provisionsE | (4,487) | (497) | (284) | 3 | (230) | (12,333) | | Other gains (losses) and provisionsF | (867) | (51) | (353) | (265) | (359) | (4,816) | | Operating profit/(loss) before tax | 3,830 | 1,111 | 827 | (1,317) | (247) | 19,027 | | Tax on profit | (1,165) | (211) | (161) | 162 | (37) | (5,284) | | Profit/(loss) from continuing operations | 2,665 | 899 | 666 | (1,155) | (283) | 13,744 | | Net profit/(loss) from discontinued operations | — | — | — | — | — | — | | Consolidated profit/(loss) | 2,665 | 899 | 666 | (1,155) | (283) | 13,744 | | Non-controlling interests | (243) | (271) | (1) | 1 | 5 | (1,169) | | Attributable profit/(loss) to the parent | 2,422 | 629 | 665 | (1,154) | (279) | 12,574 | A. Net interest income includes the net amount of the profit and loss account items 'Interest income' and 'Interest expense'. It is presented this way because it is how it is presented to the main operational decision maker. B. Gains (losses) on financial transactions includes the following line items in the statutory income statement, which are presented net for internal reporting and management reporting purposes: Gain or losses on financial assets and liabilities not measured at fair value through profit or loss, net, Gain or losses on financial assets and liabilities held for trading, net, Gains or losses on non-trading financial assets and liabilities mandatorily at fair value through profit or loss, net, Gain or losses on financial assets and liabilities measured at fair value through profit or loss, net, Gain or losses from hedge accounting, net and Exchange differences, net. C. Other operating income includes the following line items in the statutory income statement, which are presented net for internal reporting and management reporting purposes: Dividend income; Income from companies accounted for using the equity method, Other operating income, Other operating expenses, Income from assets under insurance or reinsurance contracts and Expenses from liabilities under insurance or reinsurance contracts. D. Net Operating Income is used for the Group’s internal reporting and management reporting purposes but is not a line item in the statutory consolidated income statement. E. Net loan-loss provisions refers to Impairment or reversal of impairment at financial assets not measured at fair value through profit or loss and net gains and losses from changes line item in the statutory income statement. Additionally, includes an addition of EUR 41 million mainly corresponding to the results by commitments and contingent risks included in the line provisions or reversal of provisions, net of the statutory income statement. F. Other gains (losses) and provisions includes the following line items in the statutory income statement, which are presented net for internal reporting and management reporting purposes: Provisions or reversal of provisions except an addition of EUR 41 million mainly corresponding to the results by commitments and contingent risks; Impairment of investments in joint ventures and associates, net; Impairment on non-financial assets, net; Gains or losses on non-financial assets, net; Negative goodwill recognized in results and Gains or losses on non-current assets held for sale not classified as discontinued operations. Annual report 2025823 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | EUR million | | | | | | | | | | 2023 | | | | | | | | Underlying income statement (condensed) | Spain | United Kingdom | Portugal | Poland | DCB Europe | United States | Mexico | | Net interest incomeA | 6,641 | 5,152 | 1,465 | 2,543 | 4,193 | 5,742 | 4,408 | | Net fee income | 2,699 | 338 | 464 | 589 | 796 | 766 | 1,374 | | Gains (losses) on financial transactionsB | 688 | 29 | 33 | 67 | 117 | 294 | 211 | | Other operating incomeC | 104 | 6 | 20 | (17) | 396 | 407 | (94) | | Total income | 10,132 | 5,525 | 1,982 | 3,182 | 5,502 | 7,209 | 5,899 | | Administrative expenses, depreciation and amortisation | (4,227) | (2,745) | (542) | (862) | (2,618) | (3,679) | (2,588) | | Net operating incomeD | 5,905 | 2,779 | 1,440 | 2,320 | 2,884 | 3,531 | 3,311 | | Net loan-loss provisionsE | (1,522) | (247) | (77) | (674) | (792) | (2,593) | (1,135) | | Other gains (losses) and provisionsF | (984) | (425) | (49) | (253) | (72) | (74) | (57) | | Operating profit/(loss) before tax | 3,399 | 2,107 | 1,314 | 1,392 | 2,019 | 863 | 2,119 | | Tax on profit | (1,029) | (563) | (416) | (377) | (493) | 69 | (541) | | Profit/(loss) from continuing operations | 2,371 | 1,545 | 898 | 1,015 | 1,526 | 932 | 1,577 | | Net profit/(loss) from discontinued operations | — | — | — | — | — | — | — | | Consolidated profit/(loss) | 2,371 | 1,545 | 898 | 1,015 | 1,526 | 932 | 1,577 | | Non-controlling interests | — | — | (2) | (342) | (327) | — | (17) | | Attributable profit/(loss) to the parent | 2,371 | 1,545 | 896 | 674 | 1,199 | 932 | 1,560 | Annual report 2025824 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | | | | | | | 2023 | | | | | | | Underlying income statement (condensed) | Brazil | Chile | Argentina | Corporate Centre | Rest of the Group | Total Group | | Net interest incomeA | 9,116 | 1,383 | 1,879 | (41) | 780 | 43,261 | | Net fee income | 3,462 | 572 | 396 | (13) | 614 | 12,057 | | Gains (losses) on financial transactionsB | 483 | 320 | 341 | (302) | 352 | 2,633 | | Other operating incomeC | 43 | 10 | (1,072) | (83) | (24) | (304) | | Total income | 13,104 | 2,285 | 1,544 | (439) | 1,722 | 57,647 | | Administrative expenses, depreciation and amortisation | (4,529) | (1,020) | (775) | (391) | (1,449) | (25,425) | | Net operating incomeD | 8,574 | 1,265 | 769 | (829) | 273 | 32,222 | | Net loan-loss provisionsE | (4,701) | (365) | (150) | 2 | (204) | (12,458) | | Other gains (losses) and provisionsF | (963) | 51 | (114) | (134) | 8 | (3,066) | | Operating profit/(loss) before tax | 2,911 | 951 | 505 | (961) | 79 | 16,698 | | Tax on profit | (776) | (135) | (117) | (36) | (75) | (4,489) | | Profit/(loss) from continuing operations | 2,135 | 816 | 388 | (998) | 4 | 12,209 | | Net profit/(loss) from discontinued operations | — | — | — | — | — | — | | Consolidated profit/(loss) | 2,135 | 816 | 388 | (998) | 4 | 12,209 | | Non-controlling interests | (215) | (234) | (2) | — | 6 | (1,133) | | Attributable profit/(loss) to the parent | 1,921 | 582 | 386 | (998) | 8 | 11,076 | A. Net interest income includes the net amount of the profit and loss account items 'Interest income' and 'Interest expense'. It is presented this way because it is how it is presented to the main operational decision maker. B. Gains (losses) on financial transactions includes the following line items in the statutory income statement, which are presented net for internal reporting and management reporting purposes: Gain or losses on financial assets and liabilities not measured at fair value through profit or loss, net, Gain or losses on financial assets and liabilities held for trading, net, Gains or losses on non-trading financial assets and liabilities mandatorily at fair value through profit or loss, net, Gain or losses on financial assets and liabilities measured at fair value through profit or loss, net, Gain or losses from hedge accounting, net and Exchange differences, net. C. Other operating income includes the following line items in the statutory income statement, which are presented net for internal reporting and management reporting purposes: Dividend income; Income from companies accounted for using the equity method, Other operating income, Other operating expenses, Income from assets under insurance or reinsurance contracts and Expenses from liabilities under insurance or reinsurance contracts. D. Net Operating Income is used for the Group’s internal reporting and management reporting purposes but is not a line item in the statutory consolidated income statement. E. Net loan-loss provisions refers to Impairment or reversal of impairment at financial assets not measured at fair value through profit or loss and net gains and losses from changes line item in the statutory income statement. Additionally, includes a release of EUR 24 million mainly corresponding to the results by commitments and contingent risks included in the line provisions or reversal of provisions, net of the statutory income statement. F. Other gains (losses) and provisions includes the following line items in the statutory income statement, which are presented net for internal reporting and management reporting purposes: Provisions or reversal of provisions except a release of EUR 24 million mainly corresponding to the results by commitments and contingent risks; Impairment of investments in joint ventures and associates, net; Impairment on non-financial assets, net; Gains or losses on non-financial assets, net; Negative goodwill recognized in results and Gains or losses on non-current assets held for sale not classified as discontinued operations. Annual report 2025825 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### c) Reconciliations of reportable segment results The tables below reconcile the statutory basis results to the underlying results for each of the periods presented as required by IFRS 8. For the purposes of these reconciliations, all material reconciling items are separately identified and described. Grupo Santander assets and liabilities for management reporting purposes do not differ from the statutory reported figures and therefore are not reconciled. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR million | | | | | | 2025 | | | | | | Reconciliation of statutory results to underlying results | Statutory results | Adjustments related to the Poland disposal | Other adjustments | Underlying results | | Net interest incomeA | 42,348 | 3,006 | — | 45,354 | | Net fee income | 12,976 | 685 | — | 13,661 | | Gains (losses) on financial transactionsB | 2,362 | 74 | — | 2,436 | | Other operating incomeC | 984 | (45) | — | 940 | | Total income | 58,670 | 3,720 | — | 62,390 | | Administrative expenses, depreciation and amortisation | (24,711) | (1,014) | — | (25,725) | | Net operating incomeD | 33,959 | 2,706 | — | 36,665 | | Net loan-loss provisionsE | (12,596) | (282) | 467 | (12,411) | | Other gains (losses) and provisionsF | (2,682) | (474) | (231) | (3,387) | | Operating profit/(loss) before tax | 18,681 | 1,950 | 236 | 20,867 | | Tax on profit | (4,723) | (408) | (210) | (5,341) | | Adjusted profit for the year from continuing operations | 13,958 | 1,542 | 26 | 15,526 | | Profit from discontinued operations (net) | 1,542 | (1,542) | — | — | | Consolidated profit/(loss) | 15,500 | — | 26 | 15,526 | | Non-controlling interests | (1,399) | — | (26) | (1,425) | | Attributable profit/(loss) to the parent | 14,101 | — | — | 14,101 | A. Net interest income includes the net amount of the profit and loss account items 'Interest income' and 'Interest expense'. It is presented this way because it is how it is presented to the main operational decision maker. B. Gains (losses) on financial transactions includes the following line items in the statutory income statement, which are presented net for internal reporting and management reporting purposes: Gain or losses on financial assets and liabilities not measured at fair value through profit or loss, net, Gain or losses on financial assets and liabilities held for trading, net, Gains or losses on non-trading financial assets and liabilities mandatorily at fair value through profit or loss, net, Gain or losses on financial assets and liabilities measured at fair value through profit or loss, net, Gain or losses from hedge accounting, net and Exchange differences, net. C. Other operating income includes the following line items in the statutory income statement, which are presented net for internal reporting and management reporting purposes: Dividend income; Income from companies accounted for using the equity method, Other operating income, Other operating expenses, Income from assets under insurance or reinsurance contracts and Expenses from liabilities under insurance or reinsurance contracts. D. Net Operating Income is used for the Group’s internal reporting and management reporting purposes but is not a line item in the statutory consolidated income statement. E. Net loan-loss provisions refers to Impairment or reversal of impairment at financial assets not measured at fair value through profit or loss and net gains and losses from changes line item in the statutory income statement. Additionally, includes an addition of EUR 47 million mainly corresponding to the results by commitments and contingent risks includes in the line of the statutory income statement of provisions or reversal of provisions. F. Other gains (losses) and provisions includes the following line items in the statutory income statement, which are presented net for internal reporting and management reporting purposes: Provisions or reversal of provisions except for an addition of EUR 47 million mainly corresponding to results from commitments and contingent risks; Impairment of investments in joint ventures and associates, net; Impairment on non-financial assets, net; Gains or losses on non-financial assets, net; Negative goodwill recognized in results and Gains or losses on non-current assets held for sale not classified as discontinued operations. Explanation of adjustments: • In accordance with IFRS 5 requirements, in the statutory profit, results subject to the Poland disposal have been reported under the line 'Profit or loss after tax from discontinued operations' (see Note 3). However, in the underlying profit, the results from Poland have been reclassified so that they are reported line by line and disaggregated in each of the corresponding line items. • A capital gain of EUR 231 million, from the sale of Santander's remaining 30.5% stake in CACEIS (see Note 3). • Charges of EUR 467 million (EUR 231 million net of taxes and minority interests) after updating the macroeconomic parameters in Brazil's credit provisioning models. Annual report 2025826 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR million | | | | | | 2024 | | | | | | Reconciliation of statutory results to underlying results | Statutory results | Adjustments related to the Poland disposal | Other adjustments | Underlying results | | Net interest incomeA | 43,787 | 2,881 | — | 46,668 | | Net fee income | 12,376 | 634 | — | 13,010 | | Gains (losses) on financial transactionsB | 2,211 | 62 | — | 2,273 | | Other operating incomeC | 6 | (81) | 335 | 261 | | Total income | 58,380 | 3,496 | 335 | 62,211 | | Administrative expenses, depreciation and amortisation | (25,149) | (885) | — | (26,034) | | Net operating incomeD | 33,231 | 2,611 | 335 | 36,177 | | Net loan-loss provisionsE | (12,183) | (502) | 352 | (12,333) | | Other gains (losses) and provisionsF | (3,701) | (429) | (687) | (4,816) | | Operating profit/(loss) before tax | 17,347 | 1,680 | — | 19,027 | | Tax on profit | (4,844) | (439) | — | (5,284) | | Adjusted profit for the year from continuing operations | 12,503 | 1,241 | — | 13,744 | | Profit from discontinued operations (net) | 1,241 | (1,241) | — | — | | Consolidated profit/(loss) | 13,744 | — | — | 13,744 | | Non-controlling interests | (1,170) | — | — | (1,169) | | Attributable profit/(loss) to the parent | 12,574 | — | — | 12,574 | A. Net interest income includes the net amount of the profit and loss account items 'Interest income' and 'Interest expense'. It is presented this way because it is how it is presented to the main operational decision maker. B. Gains (losses) on financial transactions includes the following line items in the statutory income statement, which are presented net for internal reporting and management reporting purposes: Gain or losses on financial assets and liabilities not measured at fair value through profit or loss, net, Gain or losses on financial assets and liabilities held for trading, net, Gains or losses on non-trading financial assets and liabilities mandatorily at fair value through profit or loss, net, Gain or losses on financial assets and liabilities measured at fair value through profit or loss, net, Gain or losses from hedge accounting, net and Exchange differences, net. C. Other operating income includes the following line items in the statutory income statement, which are presented net for internal reporting and management reporting purposes: Dividend income; Income from companies accounted for using the equity method, Other operating income, Other operating expenses, Income from assets under insurance or reinsurance contracts and Expenses from liabilities under insurance or reinsurance contracts. D. Net Operating Income is used for the Group’s internal reporting and management reporting purposes but is not a line item in the statutory consolidated income statement. E. Net loan-loss provisions refers to Impairment or reversal of impairment at financial assets not measured at fair value through profit or loss and net gains and losses from changes line item in the statutory income statement. Additionally, includes an addition of EUR 41 million mainly corresponding to the results by commitments and contingent risks includes in the line of the statutory income statement of provisions or reversal of provisions. F. Other gains (losses) and provisions includes the following line items in the statutory income statement, which are presented net for internal reporting and management reporting purposes: Provisions or reversal of provisions except for an addition of EUR 41 million mainly corresponding to results from commitments and contingent risks; Impairment of investments in joint ventures and associates, net; Impairment on non-financial assets, net; Gains or losses on non-financial assets, net; Negative goodwill recognized in results and Gains or losses on non-current assets held for sale not classified as discontinued operations Explanation of adjustments: • In accordance with IFRS 5 requirements, in the statutory profit, results subject to the Poland disposal have been reported under the line 'Profit or loss after tax from discontinued operations' (see Note 3). However, in the underlying profit, the results from Poland have been reclassified so that they are reported line by line and disaggregated in each of the corresponding line items. • Temporary levy on revenue in Spain in the first quarter, totalling EUR 335 million, which was moved from total income to other gains (losses) and provisions. • Provisions which strengthen the balance sheet in Brazil of EUR 352 million in the second quarter (EUR 174 million net of tax and minority interests). Annual report 2025827 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR million | | | | | | 2023 | | | | | | Reconciliation of statutory results to underlying results | Statutory results | Adjustments related to the Poland disposal | Other adjustments | Underlying results | | Net interest incomeA | 40,650 | 2,611 | — | 43,261 | | Net fee income | 11,495 | 562 | — | 12,057 | | Gains (losses) on financial transactionsB | 2,565 | 68 | — | 2,633 | | Other operating incomeC | (459) | (69) | 224 | (304) | | Total income | 54,251 | 3,172 | 224 | 57,647 | | Administrative expenses, depreciation and amortisation | (24,632) | (793) | — | (25,425) | | Net operating incomeD | 29,619 | 2,379 | 224 | 32,222 | | Net loan-loss provisionsE | (12,260) | (672) | 474 | (12,458) | | Other gains (losses) and provisionsF | (2,354) | (253) | (459) | (3,066) | | Operating profit/(loss) before tax | 15,005 | 1,454 | 239 | 16,698 | | Tax on profit | (3,880) | (396) | (213) | (4,489) | | Adjusted profit for the year from continuing operations | 11,125 | 1,058 | 26 | 12,209 | | Profit from discontinued operations (net) | 1,058 | (1,058) | — | — | | Consolidated profit/(loss) | 12,183 | — | 26 | 12,209 | | Non-controlling interests | (1,107) | — | (26) | (1,133) | | Attributable profit/(loss) to the parent | 11,076 | — | — | 11,076 | A. Net interest income includes the net amount of the profit and loss account items 'Interest income' and 'Interest expense'. It is presented this way because it is how it is presented to the main operational decision maker. B. Gains (losses) on financial transactions includes the following line items in the statutory income statement, which are presented net for internal reporting and management reporting purposes: Gain or losses on financial assets and liabilities not measured at fair value through profit or loss, net, Gain or losses on financial assets and liabilities held for trading, net, Gains or losses on non-trading financial assets and liabilities mandatorily at fair value through profit or loss, net, Gain or losses on financial assets and liabilities measured at fair value through profit or loss, net, Gain or losses from hedge accounting, net and Exchange differences, net. C. Other operating income includes the following line items in the statutory income statement, which are presented net for internal reporting and management reporting purposes: Dividend income; Income from companies accounted for using the equity method, Other operating income, Other operating expenses, Income from assets under insurance or reinsurance contracts and Expenses from liabilities under insurance or reinsurance contracts. D. Net Operating Income is used for the Group’s internal reporting and management reporting purposes but is not a line item in the statutory consolidated income statement. E. Net loan-loss provisions refers to Impairment or reversal of impairment at financial assets not measured at fair value through profit or loss and net gains and losses from changes line item in the statutory income statement. Additionally, includes a release of EUR 24 million mainly corresponding to the results by commitments and contingent risks includes in the line of the statutory income statement of provisions or reversal of provisions. F. Other gains (losses) and provisions includes the following line items in the statutory income statement, which are presented net for internal reporting and management reporting purposes: Provisions or reversal of provisions except a release of EUR 24 million mainly corresponding to results from commitments and contingent risks; Impairment of investments in joint ventures and associates, net; Impairment on non-financial assets, net; Gains or losses on non-financial assets, net; Negative goodwill recognized in results and Gains or losses on non-current assets held for sale not classified as discontinued operations. Explanation of adjustments: • In accordance with IFRS 5 requirements, in the statutory profit, results subject to the Poland disposal have been reported under the line 'Profit or loss after tax from discontinued operations' (see Note 3). However, in the underlying profit, the results from Poland have been reclassified so that they are reported line by line and disaggregated in each of the corresponding line items. • Temporary levy on revenue in Spain in the first quarter, totalling EUR 224 million, which was moved from total income to other gains (losses) and provisions. • Additional provisions for specific cases in the wholesale portfolio of Brazil for an amount of EUR 235 million, net of tax and non- controlling interests (EUR 474 million recorded in net loan-loss provisions, EUR 213 million positive impact in tax and EUR 26 million in non-controlling interests). Annual report 2025828 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 53. #### Related parties The parties related to the Group are deemed to include, in addition to its associates and joint ventures, the Bank's key management personnel (the members of its board of directors and the senior management, together with their close family members) and the entities over which the key management personnel may exercise significant influence or control. Following below is the balance sheet balances and amounts of the Group's income statement corresponding to operations with the parties related to it, distinguishing between associates and joint ventures, members of the Bank's board of directors, the Bank's senior management, and other related parties. Related-party transactions were made on terms equivalent to those that prevail in arm's-length transactions or, when this was not the case, the related compensation in kind was recognized. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR million | | | | | | | 2025 | | | | | | Associates and joint ventures | Members of the board of directors | Senior Management | Other related parties | | Assets | 10,491 | — | 18 | 295 | | Cash, cash balances at central banks and other deposits on demand | 2 | — | — | — | | Loans and advances: credit institutions | 286 | — | — | — | | Loans and advances: customers | 9,835 | — | 18 | 274 | | Debt securities | 160 | — | — | 2 | | Others | 208 | — | — | 19 | | | | | | | | Liabilities | 2,978 | 10 | 5 | 376 | | Financial liabilities: credit institutions | 26 | — | — | — | | Financial liabilities: customers | 2,761 | 10 | 5 | 376 | | Marketable debt securities | — | — | — | — | | Others | 191 | — | — | — | | | | | | | | Income statement | 1,724 | — | — | 7 | | Interest income | 441 | — | — | 8 | | Interest expense | (119) | — | — | (4) | | Gains/losses on financial assets and liabilities and others | (53) | — | — | — | | Commission income | 1,546 | — | — | 4 | | Commission expense | (91) | — | — | (1) | | | | | | | | Other | 3,732 | 4 | 3 | 189 | | Financial guarantees granted and Others | 11 | 3 | 2 | 61 | | Loan commitments and Other commitments granted | 335 | 1 | 1 | 38 | | Derivative financial instruments | 3,386 | — | — | 90 | Annual report 2025829 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR million | | | | | | | 2024 | | | | | | Associates and joint ventures | Members of the board of directors | Senior Management | Other related parties | | Assets | 10,783 | — | 14 | 226 | | Cash, cash balances at central banks and other deposits on demand | 163 | — | — | — | | Loans and advances: credit institutions | 407 | — | — | — | | Loans and advances: customers | 9,750 | — | 14 | 221 | | Debt securities | 229 | — | — | 5 | | Others | 234 | — | — | — | | | | | | | | Liabilities | 3,243 | 9 | 7 | 292 | | Financial liabilities: credit institutions | 228 | — | — | — | | Financial liabilities: customers | 2,810 | 9 | 7 | 292 | | Marketable debt securities | — | — | — | — | | Others | 205 | — | — | — | | | | | | | | Income statement | 1,776 | — | — | 4 | | Interest income | 508 | — | — | 9 | | Interest expense | (153) | — | — | (5) | | Gains/losses on financial assets and liabilities and others | (11) | — | — | — | | Commission income | 1,535 | — | — | 1 | | Commission expense | (103) | — | — | (1) | | | | | | | | Other | 4,712 | 4 | 3 | 216 | | Financial guarantees granted and Others | 18 | 3 | 2 | 64 | | Loan commitments and Other commitments granted | 317 | 1 | 1 | 20 | | Derivative financial instruments | 4,377 | — | — | 132 | Annual report 2025830 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR million | | | | | | | 2023 | | | | | | Associates and joint ventures | Members of the board of directors | Senior Management | Other related parties | | Assets | 10,497 | — | 12 | 186 | | Cash, cash balances at central banks and other deposits on demand | 154 | — | — | — | | Loans and advances: credit institutions | 405 | — | — | — | | Loans and advances: customers | 9,275 | — | 12 | 185 | | Debt securities | 391 | — | — | 1 | | Others | 272 | — | — | — | | | | | | | | Liabilities | 2,480 | 14 | 5 | 150 | | Financial liabilities: credit institutions | 463 | — | — | — | | Financial liabilities: customers | 1,727 | 14 | 5 | 150 | | Marketable debt securities | — | — | — | — | | Others | 290 | — | — | — | | | | | | | | Income statement | 1,698 | — | — | 11 | | Interest income | 427 | — | — | 9 | | Interest expense | (149) | — | — | (1) | | Gains/losses on financial assets and liabilities and others | 43 | — | — | — | | Commission income | 1,499 | — | — | 3 | | Commission expense | (122) | — | — | — | | | | | | | | Other | 4,189 | 3 | 2 | 1,094 | | Financial guarantees granted and Others | 10 | 2 | 1 | 861 | | Loan commitments and Other commitments granted | 274 | 1 | 1 | 9 | | Derivative financial instruments | 3,905 | — | — | 224 | The remaining required information is detailed in notes 5 and 46.c. Annual report 2025831 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 54. #### Risk management #### a) Risk principles and culture The principles on which Grupo Santander's risk management and control are based are detailed below. They take into account regulatory requirements, best market practices and are mandatory: 1. All employees are responsible for risk management. They must understand the risks arising from their activities and take ownership for managing them. 2. Senior management involvement. Through conduct, actions and communications, senior management promotes consistent risk management, fosters our risk culture, and oversees that the risk profile remains within the appetite set. 3. Independence: Risk management and control functions operate independently according to our three-lines-of-defence model, with clearly defined roles and responsibilities. 4. Holistic, forward-looking approach: We take a comprehensive approach to risk management and control that extends to all businesses and risk types that could have a material impact. This approach is forward-looking and considers trends across several time horizons and scenarios. 5. Corporate oversight of subsidiaries: Banco Santander sets minimum risk management and control standards through reference documents. Subsidiaries are responsible for translating these standards into their own internal policies and procedures. 1. #### Key risk types Grupo Santander's risks categorization allows effective risk management, control and reporting, and includes, among others the following risk types: • Credit risk is the risk of loss arising from the failure of a customer or counterparty to meet its obligations to which the Santander Group has provided financing or entered into a contractual commitment, or from the deterioration of their credit quality. • Market risk is the risk incurred as a result of the effect of changes in market factors interest rates, exchange rates, equities and commodities, among others, may have on profits or capital. • Liquidity risk is the risk incurred because of adverse movements in the factors that determine the market value of financial instruments, such as interest rates, exchange rates, equity prices and commodities, among others. • Structural Risk is the risk of changes in the value or margin generation of the assets or liabilities in the banking book resulting from changes in market and behavioural factors. It also includes risks associated with insurance and pension activities, as well as the risk of not having an adequate amount or quality of capital to meet internal business objectives, regulatory requirements, or market expectations. • Capital risk, included within the scope of structural risk, is the risk that arises from the possibility of having an inadequate quantity or quality of capital to meet internal business objectives, regulatory requirements or market expectations. Grupo Santander also takes into account, on an ongoing basis in its risk management, operational (includes fraud, technological, cyber, legal and conduct risks), financial crime (includes, among others, money laundering, terrorism financing, violation of international sanctions, corruption, bribery and tax evasion), model, reputational and strategic risks. These risks may be affected by a range of factors that we identify and assess in line with regulatory requirements and industry practice, including: geopolitical developments (international conflicts, economic and monetary decisions, new regulations or trade tensions); digital and transformation initiatives linked to technological change or shifts in business models; and sustainability factors — environmental (natural and climate- related, including extreme events and resource scarcity, as well as those arising from the transition to a more sustainable economy), social (relating to people’s rights, welfare and interests) and governance, both within Grupo Santander and among our counterparties. In particular, from an environmental and climate perspective, the relevant elements cover, on the one hand, those stemming from the physical effects of climate change and, on the other, those linked to the transition towards a more sustainable economy, including legislative and regulatory, technological or behavioural changes among economic agents. Given the nature of its operations, the Group has no environment- related liabilities, expenses, assets or contingencies that may be material to its consolidated equity, financial situation and results. According to market consensus and our materiality assessment, exposure in the sectors where environmental factors may have the most impact mainly relate to wholesale customers. Our management of these customers considers environmental aspects in the preliminary assessment, credit origination and the preparation and review of their credit ratings, which influence the parameters we use to calculate their probability of default (PD). Thus, we embed the most material climate factors in our assessments and in capital loss and provisions calculations. Moreover, to cover and anticipate potential future losses from severe climate events, such as the Valencia DANA or Hurricane Milton in Florida, we have set overlays whose amount to date has not been material to the Group's total loan loss reserves. Grupo Santander has enhanced its methodological framework to quantify and assess transition and physical risks in credit losses for climate impacts that are not specifically captured through the forward-looking component implemented under the IFRS 9 framework. We assess these risks under several scenarios published by the NGFS, which explore varying assumptions on shifts in climate policies, emissions, temperatures and physical risk impacts. We take a proportionality approach by assessing the impact on the Group’s core markets and portfolios, especially non- financial entities and mortgage products. Regarding impact on companies’ credit quality, the model assesses the transmission of customers’ physical and transition climate risk through defined channels (sector GVA, GHG emissions, carbon price, regional GDP, or collateral valuations). Annual report 2025832 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | For mortgage products, climate risk appears mainly through a deterioration in collateral values, as reflected in the loan-to-value ratio, which is the main transmission channel into LGD. These methodologies enable us to embed potential climate-event impacts on credit losses in credit risk management. Against this backdrop, we carried out both internal capital self-assessment exercises and regulatory stress tests. In light of the above and based on the best information available at the date of these consolidated annual financial statements, we also assessed the potential additional impact of climate and environmental risks on the Group’s equity, financial situation and results in 2025. We did not identify any significant or material impacts. 2. Risk and compliance governance Grupo Santander robust risk and compliance governance structure allows us to conduct effective oversight in line with our risk appetite. It stands on three lines of defence, a structure of committees and strong Group-subsidiary relations, guided by our risk culture, Risk Pro. 2.1 Lines of defence Grupo Santander model of three lines of defence effectively manages and controls risks: • First line : formed business functions, as well as all other functions that generate risk, constitute the first line of defence. They must establish an appropriate environment to manage all risks associated with the business and support compliance with internal policies and regulation. Risk management must operate within the approved risk appetite and associated limits. The first line executes mitigation plans for risks where weaknesses are identified in its control environment. • Second line: formed by the risk and compliance functions, independently oversees and challenges the risk management activities that the first line carries out. Its role is to help verify that we manage risks in line with the established risk appetite and to promote a strong risk culture across the organization. • Third line: formed by Internal Audit is a permanent function, independent of any other functions or units, whose objective is to provide the Management Body and the senior management with independent assurance on the quality and effectiveness of internal control, risk management (current or emerging) and governance processes and systems, thereby helping to protect the company’s value, solvency, and reputation. Risk, Compliance and Internal Audit are sufficiently separate and autonomous functions, with direct access to the board and its committees. The risk and compliance functions report to the risk supervision, regulation and compliance committee and the internal audit function reports to the audit committee. 2.2 Risk committee structure The board of directors has final oversight of risk and compliance management and control to promote a sound risk culture and review and approve risk appetite and frameworks, with support from its risk, regulation and compliance committee (RSRCC) and its executive committee. The Group's risk governance keeps risk control and risk-taking areas separate. Our governance structure also includes key roles and executive committees that strengthen oversight and support the effective performance of the control function. The Group chief risk officer (CRO), who leads the application and execution of risk strategy and promotes proper risk culture, is in charge of overseeing all risks and challenging and advising business lines on risk management. The Group chief compliance officer (CCO) leads the application and execution of the compliance and conduct risk strategy and reports the status of risks being monitored in order to provide the Chief Risk Officer with a comprehensive view of all risks. The CRO and the CCO report directly to both the risk supervision, regulation and compliance committee and the board of directors. The executive risk, risk control and compliance and conduct committees are executive committees with powers delegated from the board. Furthermore, the executive-level committees delegate part of their responsibilities to forums and/or standing meetings to manage and control each risk type. Their responsibilities include: • Inform the CRO, the CCO, the risk control committee and the compliance and conduct committee if risks are being managed within risk appetite; • Conduct regular follow-ups for each key risk type; and • Overseeing the measures adopted to meet supervisor's and auditor's expectations. Besides, Grupo Santander, in order to establish an adequate control environment for the management of each risk types, the risk and compliance functions have effective internal regulation to create the right environment to manage and control all risks. Grupo Santander may introduce additional governance measures for special situations to reinforce the monitoring of all risks, with particular focus on trends in key macroeconomic indicators and liquidity, the identification of vulnerable sectors/customers, and the strengthening of cybersecurity, among other aspects. Activating these special-situations forums helps the Group address the effects of the geopolitical and macroeconomic environment with resilience. Annual report 2025833 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 2.3 The Group's relationship with subsidiaries Grupo Santander subsidiaries’ risk and compliance management and control model is consistent with the frameworks approved by the Group board of directors. Subsidiaries adhere to the frameworks through their own boards and can only adapt to higher standards according to local law and regulation. As part of Santander's aggregated risk oversight, we challenge and review subsidiaries’ internal regulations and activities. This enables us to maintain a common risk management and control model across the Group. The risk and compliance functions support the businesses and oversee risks at both global and local levels. In addition, over the year we continued to strengthen the Group–subsidiary relationship model, leveraging our global scale to identify synergies under a common operating model and shared platforms. The model promotes process simplification and the reinforcement of control mechanisms to support the growth of our businesses. Santander's Group–subsidiary governance model (GSGM) sets out the principles that govern the relationship between Group key roles and the subsidiaries, which helps safeguard the independence of local second lines. The CRO and CCO take part in the appointment, objectives, performance reviews and remuneration of their local counterparts, which helps confirm that they are controlling risks appropriately. We continue to strengthen the relationship between the Group and its subsidiaries through close cooperation among our subsidiaries to develop common initiatives more efficiently, such as: • Transformation of organizational structures, sharing benchmarks across countries and contributing to the function’s strategic vision to promote the rollout of more advanced risk- management infrastructures and practices. • Exchange of best practices to strengthen processes and drive innovation. • Promotion of internal talent and mobility, both geographic and functional, as well as fostering diversity within teams to reflect the diversity of the environments in which we operate. • Developing our risk professionals, improving innovation, the quality of decisions, and fostering a global mindset is key to enhance organizational resilience and reinforcing a global mindset. The GSGM model also applies to the Group’s global businesses. This gives us a global-local organization in which countries ultimately remain responsible for delivering the budget, the business and customer strategy, and financial management, while the global businesses lead shared initiatives through common operating models and shared technologies, improving local performance. 3. Management processes and tools Grupo Santander has these effective risk management processes and tools: 3.1 Risk appetite and structure of limits Risk appetite is the aggregate level and types of risk that Grupo Santander deems prudent for our business strategy, even in unforeseen circumstances. Risk appetite is governed throughout the Group by the following principles: • Risk appetite is part of the board's duties. The board prepares the risk appetite statement (RAS) for the whole Group every year. Through a cascading-down process, each subsidiary's board also sets its own risk appetite. • Comprehensiveness and forward-looking approach. Our appetite includes all material risks to which we are exposed and defines our target risk profile for the current and medium term, with a forward-looking view that considers stress scenarios. • Common standards embedded in the day-to-day risk management. The Group shares the same risk appetite model, which sets common requirements for processes, metrics, governance bodies, controls and standards. This facilitates effective and traceable embedding of risk appetite into more granular management policies and limits across our subsidiaries.. • Continuous monitoring and adaptation. Risk appetite is regularly monitored, reviewed and updated to reflect changes in market conditions, regulatory requirements and supervisory expectations. Compliance with risk appetite limits is monitored on a regular basis through dedicated reporting to senior management and the board and its committees. Breaches or potential breaches are subject to predefined escalation, remediation and follow-up processes, with oversight proportionate to their materiality through senior management and the Group’s governing bodies. • Alignment with strategy and business plans. Before approving the three-year strategic plans, annual budget, and capital and liquidity plans, the Group verifies their consistency with the limits set in the Risk Appetite Statement. We promote the alignment of strategic and business plans with our risk appetite by: • considering the risk appetite, long-term strategic view and the risk culture when drafting strategic and business plans. • challenging business and strategic plans against the risk appetite. Misalignments trigger a review of either the three- year strategic plan (to make sure we stay within RAS limits) or risk appetite limits, with independent governance. • continuous monitoring of risk appetite compliance through the three lines of defence model. The main elements underpinning Grupo Santander’s risk appetite and defining our business model are: • a medium-low, predictable target risk profile, customer focus, internationally diversified operations and a significant market share; • stable, recurrent earnings and shareholder remuneration, sustained by a sound base of capital, liquidity and sources of funding; • autonomous subsidiaries that are self-sufficient in terms of capital and liquidity to safeguard their risk profiles against compromising the Group’s profile; • an independent risk function and a senior management actively engaged in supporting a robust control environment and risk culture; and • a conduct model that protects our customers and our Simple, Personal and Fair culture. Annual report 2025834 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The risk appetite is expressed through qualitative statements and limits on metrics representative of the bank’s risk profile at present and under stress. Those metrics cover all risk types according to our corporate risk framework. Grupo Santander articulates them in five axes that provide the Bank with a holistic view of all risks it incurs in the development of its business model. These five axes are applicable to all Santander's key risk types, and comprise: • P&L volatility: control of P&L volatility of business plan under baseline and stressed conditions (under normal and stressed conditions). • Solvency: control of capital ratios under baseline and stressed scenarios (aligned with ICAAP). • Liquidity: control of liquidity ratios under base and stress scenarios (aligned with ILAAP). • Concentration: control of credit concentration on top clients, portfolios and industries. • Non financial risk and control environment: robust control on non financial risks aimed to minimize events which could lead to financial loss, operative, technological, legal and regulatory breaches, conduct issues or reputational damage. #### b) Credit risk 1. #### Introduction to the credit risk treatment Grupo Santander takes a holistic view of the credit risk cycle, including the transaction, the customer and the portfolio, in order to identify, analyse, control and decide on credit risk. Credit risk identification facilitates active and effective portfolio management and control. Grupo Santander identify and classify external and internal risk in each business to adopt any corrective or mitigating measures through: 1.1. Planning Planning allows to set business objectives and define concrete action plans, integrating the risk appetite statement into portfolio management. Strategic commercial plans (SCPs) are the management and control tool that the Business and Risk areas define for credit portfolios, with support from the other functions involved (Finance, Management Control, among others). They set out the commercial strategy, risk policies, and the resources and infrastructure required, providing a holistic view of portfolio management. They also provide an up-to-date view of portfolio credit quality, enable risk measurement, support the execution of internal controls over the defined strategy, allow for periodic monitoring, and help detect material deviations or potential impacts, facilitating the adoption of corrective measures when necessary. SCPs are aligned with subsidiaries’ risk appetite and capital objectives, as well as those of the Group, and are approved and overseen by local senior management before being reviewed and ratified at Group level. 1.2. Risk assessment and credit rating Credit risk approval criteria focus on borrowers’ ability to meet their financial obligations. The assessment uses statistical models and an analysis of the net funds or cash flows generated by economic activity, or of regular income, to determine customers’ repayment capacity in a consistent and sustainable manner. Some statistical credit quality assessment models feed into decision engines to deliver a credit risk assessment quickly and in a consistent, standardised way. These engines support faster and more uniform decision-making, reduce manual errors, apply the same assessment criteria to all customers, and provide traceability and support regulatory compliance. These ratings have multiple uses in risk management, including the origination process (application of limits and pre-approvals), risk monitoring, and as an input to transaction pricing. These credit rating models may be: • Rating: from mathematical algorithms that have a quantitative model based on balance sheet ratios or macroeconomic variables or behavioural information, and a qualitative module supplemented by the credit analyst’s expert judgement. It is used for large corporates, corporates, institutional and SME segments (with individualised treatment). • Scoring: an automated system that assesses credit applications based on the information provided (admission scoring) or customers’ credit profiles based on their relationship with the institution (behavioural scoring). Both are complemented by other available information (for example, from external databases). The system automatically assigns each customer an individual score, which then supports the subsequent decision. It is used for individuals and small businesses with no assigned analyst. The Group’s parameter estimation models rely on econometric models built on historical default and loss data from the portfolios. The Group uses them to calculate economic and regulatory capital, and IFRS 9 provisions, at operation, customer and portfolio level. A rigorous governance framework covers the ongoing monitoring and continuous calibration of these models to assess their suitability, predictive power, performance and granularity, as well as compliance with credit policies. In addition, the Group reviews ratings using the latest available financial information and other relevant data. Grupo Santander´s limits, pre-classifications and pre-approvals processes determine the level of risk the Group can take on with each customer. Automated processes approve and monitor these decisions. Approved limits must align with expected profitability. To support this, we use profitability estimation and risk-based pricing tools that contribute to sustainable portfolio growth. Grupo Santander applies various limits models to each segment: • Large corporate groups are subject to a pre-classification model based on a system for measuring and monitoring economic capital. Pre-classification models express the level of risk Grupo Santander is willing to assume in transactions with customers/ groups. • In the corporate segment, for customers that meet certain predefined criteria (including internal rating and profitability), the Group applies a pre-classification model for the main products related to the customer’s recurring business. The model operates through the setting of internal nominal limits, which define the level of risk to take on with each customer based, among other factors, on their repayment capacity and leverage. Corporate transactions that exceed certain limits or have specific features must be handled through the approval process for an ad hoc proposal. Annual report 2025835 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | • For individual customers and SMEs with low turnover, Grupo Santander manages large volumes of credit transactions using automated decision models that assess each case and assign a limit per customer and transaction. 1.3. Scenario analysis Grupo Santander´s scenario analyses determine the potential risks in its credit portfolios and provide a better understanding of our portfolios' performance under various macroeconomic conditions. They allow us to anticipate management strategies that will avoid future deviations from defined plans and targets. They simulate the impact of alternative scenarios in portfolios’ credit parameters (PD, LGD) and expected credit losses. Grupo Santander compares findings with portfolios’ credit profile indicators to find the right measures for managers to take. Credit risk management of portfolios and SCPs incorporate scenario analyses. 1.4. Monitoring Regular, holistic monitoring of customers and portfolios is an essential element of the Group’s credit risk management, as it enables continuous monitoring of credit quality, early identification of potential impairment and analysis of business performance against predefined plans and objectives. The monitoring process systematically analyses changes in credit exposures, customers’ financial and qualitative characteristics, and any relevant changes in their risk classification. This preventive approach draws on transactional information, behavioural indicators and advanced analytics tools, including early-warning engines, which support early identification of potential deterioration and the implementation of specific actions at both customer and portfolio level, based on the assigned monitoring level. Monitoring adapts to customer segmentation and the applicable management approach: • in the large corporate segment, monitoring is carried out jointly by the commercial managers and the risk analysts, which provides an up-to-date, comprehensive view of the customer’s credit quality at all times and supports the early identification of any potential deterioration. • In the commercial banking, institutions and SMEs with an assigned a credit analyst, he teams carry out enhanced monitoring of customers whose risk profile or specific circumstances require it. This includes the periodic review of their internal ratings based on relevant financial, behavioural and environmental indicators. • Monitoring of individual customers, businesses and smaller SMEs follows a system of automatic alerts to detect shifts in portfolios’ performance. The Group structures this process for customers with an assigned analyst through the SCAN (Santander Customer Assessment Note) monitoring framework. SCAN assigns a specific monitoring level to each customer, sets the related operating policies, defines concrete management actions, identifies accountable owners and establishes a review frequency aligned with the customer’s risk profile and relevance. In addition, the Group has aggregated control and analysis procedures that track portfolio performance, identify material deviations from strategic plans or defined alert thresholds, and help prioritise management focus areas. The process is complemented by contingency plans (risk playbooks), which support the early identification and management of impacts from external factors — such as macroeconomic, sector or market changes — and, where appropriate, trigger corrective measures, including adjustments to risk policies. 1.5. Credit risk mitigation techniques Risk approval criteria generally focus on borrowers’ ability to meet their financial obligations, without prejudice to any collateral that the Bank may require. Collateral and guarantees provided by the obligor in favour of the Bank aim to modulate the level of exposure. To determine ability to pay, the Group analyses funds or cash flows from businesses or other regular income, not including guarantors or loan collateral which are always considered at credit approval as a secondary means of recourse. A guarantee is an additional protection mechanism in a credit transaction, intended to mitigate loss in the event of a failure to meet the payment obligation. The Group applies different credit risk mitigation techniques depending, among other factors, on the customer and product type. Some are specific to an individual transaction (e.g., real estate guarantees), while others apply to a set of transactions (e.g., derivatives netting or collateral arrangements). These techniques may be grouped into personal guarantees, real guarantees and hedges using credit derivatives. The correct acceptance of these mitigation techniques is established by verifying their legal enforceability in all jurisdictions. The entire process is subject to internal control and effective monitoring of the valuation of the guarantees, especially real estate guarantees. 1.6. Collections & recoveries management Recovery activity is a relevant function within Grupo Santander’s risk management and control framework, as it contributes to portfolio quality as one of the key pillars supporting the Bank’s development, growth and business sustainability. Collections and debt recovery management is a specific, ongoing focus to keep portfolio quality within the expected levels. The Collections and Recoveries area defines a global management strategy, based on an end-to-end approach and general lines of action for subsidiaries. Recovery management operates under policies and an independent control environment defined by the risk function, aligned with regulatory requirements and with the Group Santander conduct risk management model. The Group carries out this activity in line with strategies defined by the recovery function, in coordination with the Risk areas. The recovery strategy combines advanced customer segmentation and the intensive use of digital tools. This supports the optimisation of mass portfolio management and provides tailored support for customers who require individual treatment. The customer remains the focus, and recovery strategies are defined in the context of the relationship with the customer, prioritising the customer’s viability. As a result, teams manage the customer holistically across all phases of the cycle. Annual report 2025836 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The function’s approach covers the entire credit cycle, prioritising solutions that support customer viability. Even after the asset is written off (failed risk), the Group continues to carry out the necessary actions to maximise recovery. The failed risk category includes debt instruments, whether past due or not, for which, following an individual assessment, recovery is considered remote due to a significant and irreversible deterioration in the solvency of the exposure or the holder. Classification in this category entails the full or partial cancellation of the exposure’s gross carrying amount and its derecognition from the balance sheet, without implying that the Group stops negotiations and legal proceedings to recover the amount. 2. Main aggregates and variations Below are the main aggregates relating to credit risk from our activities with customers: | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | Main credit risk performance metrics from activity with customersA | | | | | | | | | | | | | December data | | | | | | | | | | | | | | Credit risk with customers (EUR million)B | | | | Credit impaired (EUR million) | | | | NPL ratio (%) | | | | | 2025 | 2024 | 2023 | | 2025 | 2024 | 2023 | | 2025 | 2024 | 2023 | | Spain | 302,271 | 285,883 | 278,569 | | 5,915 | 7,672 | 8,529 | | 1.96 | 2.68 | 3.06 | | UK | 244,303 | 248,061 | 247,360 | | 2,645 | 3,299 | 3,518 | | 1.08 | 1.33 | 1.42 | | Portugal | 44,674 | 41,418 | 39,503 | | 928 | 993 | 1,024 | | 2.08 | 2.40 | 2.59 | | Poland | 46,427 | 44,704 | 39,329 | | 1,549 | 1,636 | 1,397 | | 3.34 | 3.66 | 3.55 | | US | 147,303 | 148,643 | 137,893 | | 7,150 | 7,012 | 6,303 | | 4.85 | 4.72 | 4.57 | | Mexico | 53,476 | 49,927 | 52,785 | | 1,420 | 1,352 | 1,489 | | 2.65 | 2.71 | 2.82 | | Brazil | 105,410 | 104,519 | 113,937 | | 7,192 | 6,418 | 7,479 | | 6.82 | 6.14 | 6.56 | | Chile | 44,146 | 44,590 | 46,565 | | 2,528 | 2,394 | 2,332 | | 5.73 | 5.37 | 5.01 | | Argentina | 8,813 | 8,411 | 3,903 | | 677 | 173 | 78 | | 7.68 | 2.06 | 1.99 | | DCB Europe | 144,039 | 141,312 | 135,608 | | 3,642 | 3,527 | 2,877 | | 2.53 | 2.50 | 2.12 | | Corporate Centre | 6,356 | 5,959 | 5,494 | | 271 | 301 | 302 | | 4.27 | 5.06 | 5.49 | | Total Group | 1,181,945 | 1,157,273 | 1,133,898 | | 34,393 | 35,265 | 35,620 | | 2.91 | 3.05 | 3.14 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | NPL coverage ratio (%) | | | | Net loan-loss provisions C (EUR million) | | | | Cost of risk (%/risk) D | | | | | 2025 | 2024 | 2023 | | 2025 | 2024 | 2023 | | 2025 | 2024 | 2023 | | Spain | 55 | 53 | 49 | | 1,142 | 1,259 | 1,522 | | 0.44 | 0.50 | 0.62 | | UK | 33 | 29 | 30 | | 177 | 64 | 247 | | 0.07 | 0.03 | 0.10 | | Portugal | 83 | 79 | 83 | | (8) | 11 | 77 | | (0.02) | 0.03 | 0.20 | | Poland | 65 | 62 | 73 | | 283 | 511 | 674 | | 0.71 | 1.38 | 2.08 | | US | 55 | 64 | 68 | | 2,244 | 2,507 | 2,593 | | 1.63 | 1.82 | 1.92 | | Mexico | 105 | 100 | 100 | | 1,239 | 1,277 | 1,135 | | 2.69 | 2.64 | 2.43 | | Brazil | 83 | 83 | 85 | | 4,409 | 4,487 | 4,701 | | 4.73 | 4.51 | 4.77 | | Chile | 48 | 50 | 53 | | 531 | 497 | 365 | | 1.32 | 1.19 | 0.80 | | Argentina | 90 | 177 | 166 | | 574 | 284 | 150 | | 7.34 | 4.59 | 6.64 | | DCB Europe | 87 | 83 | 88 | | 1,363 | 1,209 | 792 | | 0.97 | 0.88 | 0.62 | | Corporate Centre | 24 | 25 | 33 | | 198 | (3) | (2) | | 3.30 | (0.05) | (0.04) | | Total Group | 66 | 65 | 66 | | 12,411 | 12,333 | 12,458 | | 1.15 | 1.15 | 1.18 | A. Management perimeter according to the reported segments. B. Includes gross loans and advances to customers, guarantees and documentary credits. C. Loan-loss provisions net of post write-off recoveries (EUR 1,795 million in 2025). D. Provisions to cover losses due to impairment of loans in the last 12 months / average customer loans and advances of the last 12 months. Annual report 2025837 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Information on the estimation of impairment losses The calculation of provisions for credit risk losses is performed at financial asset level, estimating potential credit losses through the difference between the contractual cash flows and the expected cash flows, ensuring that the results are adequate considering the status of the transaction, economic conditions and available forward-looking information. The IFRS 9 impairment model applies to financial assets valued at amortized cost; debt instruments valued at fair value with changes in other comprehensive income; leasing receivables; and commitments and guarantees not valued at fair value. The portfolio of financial instruments subject to IFRS 9 has three credit risk categories (or stages) according to the status of each instrument in relation to its level of credit risk: • Stage 1: financial instruments with no significant increase in risk since initial recognition – the impairment provision reflects expected credit losses from defaults over the 12 months from the reporting date. • Stage 2: financial instruments with a significant credit risk increase since initial recognition but no materialized impairment event – the impairment provision reflects expected losses from defaults over the financial instrument’s residual life. • Stage 3: financial instruments with true signs of impairment as a result of one or more events resulting in a loss – the impairment provision reflects expected losses for credit risk over the instrument’s expected residual life. The classification of financial instrument in the IFRS 9 stages is carried out in accordance with the guidelines through the risk management policies of the subsidiaries, which are consistent with the Group's policies. Estimation of expected loss The Group uses parameters (mainly EAD, PD, LGD and the discount rate) to calculate impairment provisions. These parameters build on the infrastructure of internal models used to calculate regulatory capital and on regulatory and management expertise, and they also reflect each financial asset’s stage classification. However, these parameters are not a simple adaptation of existing models. We designed and validated them specifically in line with IFRS 9 requirements and guidance from bodies such as the EBA, , National Competent Authority (NCA), Bank for International Settlements (BIS) or Global Public Policy Committee (GPPC). Their development incorporates forward-looking information, a point-in- time (PIT) approach, multiple scenarios and lifetime loss estimation through lifetime PD, among other elements. Determination of significant increase in credit risk (SICR) To determine classification in Stage 2, the Group assesses whether a SICR has occurred since the initial recognition of the exposures. The Group performs this assessment under common principles applicable across the Group, reviewing all financial instruments subject to this analysis and taking into account the specific features of each portfolio and product type through a range of quantitative and qualitative indicators. Expert judgement from analysts supports the SICR assessment. Analysts set the thresholds within an integrated management framework and in line with the approved corporate governance. The principles are as follows: • Universality: all financial instruments subject to a credit rating must be assessed for their possible SICR. • Proportionality: the definition of the SICR must take into account the particularities of each portfolio. • Materiality: its implementation must be also consistent with the relevance of each portfolio so as not to incur in unnecessary costs or efforts. • Holistic vision: the approach selected must be a combination of the most relevant credit risk aspects (e.g. quantitative and qualitative). • Application of IFRS 9: the approach must take into consideration IFRS 9 characteristics, focusing on a comparison with credit risk at initial recognition, as well as considering forward-looking information. • Risk management integration: the criteria must be consistent with those metrics considered in the day-to-day risk management. • Documentation: appropriate documentation must be prepared. The techniques are summarised below: • Stability of stage 2: in the absence of significant changes in the portfolios credit quality, the volume of assets in stage 2 should maintain a certain stability as a whole. • Economic reasonableness: at transaction level, stage 2 is expected to be a transitional rating for exposures that could eventually move to a deteriorating credit status at some point or stage 3, as well as for exposures that have suffered credit deterioration and whose credit quality is improving and returns to stage 1. • Predictive power: it is expected that the SICR definition avoids, as far as possible, direct migrations from stage 1 to stage 3 without having been previously classified in stage 2. • Time in stage 2: it is expected that the exposures do not remain categorized as stage 2 for an excessive time. The application of the aforementioned techniques, conclude in the setting of one or several thresholds for each portfolio in each geography. Likewise, these thresholds are subject to a regular review by means of calibration tests, which may entail updating the thresholds types or their values. Identifying a significant increase in credit risk: when classifying financial instruments under stage 2, Santander considers: • Quantitative criteria: Grupo Santander reviews and quantifies changes in the risk of default during their expected life based on their credit risk level on initial recognition. Annual report 2025838 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | For the purposes of assessing significant changes when financial instruments are classified in Stage 2, each subsidiary has set quantitative thresholds for its portfolios in line with Group guidelines, seeking a consistent interpretation across all our geographies. The calibration principles for these thresholds are set out in the previous paragraph and may result in two types of thresholds: • Relative. Thresholds that compare current credit quality with credit quality at origination, expressed as a percentage change. • Absolute. Thresholds that compare current credit quality with credit quality at origination, expressed as an absolute change. In addition, in line with the ECB’s supervisory expectations, the Group has set a 200% cap on the relative threshold, known as the 'threefold increase'. As a result, exposures whose credit quality has deteriorated by more than 200% in relative terms — using an approach analogous to the relative threshold described in the previous paragraph — transfer from Stage 1 to Stage 2. Meeting any of the absolute thresholds, the relative thresholds or the 200% cap on the relative threshold (threefold increase) on an individual basis results in the transfer of the financial instrument exposure from Stage 1 to Stage 2. In addition, the Group may apply the Low Credit Risk Exemption at the reporting date, so that certain exposures that continue to meet this condition may remain in Stage 1. This exemption applies only to quantitative significant increase in credit risk criteria; therefore, qualitative criteria are not eligible for exemption. The Group uses it on a limited basis, documents it and reviews it periodically. When an exposure no longer meets the low credit risk condition, it transfers to Stage 2 in line with the criteria above. • Qualitative criteria: several indicators aligned with ordinary credit risk management indicators (e.g. past due for over 30 days, forbearance, early warning indicators system, etc.). Each subsidiary has defined these indicators for their portfolios, with special attention to reinforcing these qualitative criteria through expert judgment and aligning them to the criteria used in management. When the presumption of a significant deterioration of credit risk is removed, due to a sufficient improvement of the credit quality, the obligor can be re-classified to stage 1, without any probationary period in stage 2. • Definition of default: Santander incorporated the new definition to provisions calculation according to the EBA’s guidelines; the Group is also considering applying it to prudential framework. In addition, the default definition and stage 3 have been aligned. This definition considers the following criteria to classify exposures as stage 3: financial instruments with one or more payments more than 90 consecutive days past due, representing at least 1% of the client's total exposure or the identification of other criteria demonstrating, even in the absence of defaults, that it is unlikely that the counterparty is unlikely to meet all of its financial obligations. Grupo Santander applies the default criteria to all exposures of the impaired client. Where an obligor belongs to a group, the default criteria may also be applied to all exposures of the group. The default classification is maintained during the 3-month test period following the disappearance of all default indicators described above, and this period is extended to one year for forbearances that have been classified as default. • Expected life of financial instruments: Santander estimates the expected life of financial instruments according to their contractual terms (e.g. prepayments, duration, purchase options, etc.). The contractual period (including extension options) is the maximum time frame for measuring the expected credit loss. If financial instruments have an undefined maturity period and undrawn amounts (e.g. credit cards), Santander estimates its expected life based on the total exposure period and effective management practices to mitigate exposure. 1. Forward-looking vision Estimating expected credit losses (ECL)requires significant expert judgement and the incorporation of historical, current and forward- looking information. Expected loss estimates are therefore based on an unbiased, probability-weighted likelihood of up to five possible future scenarios that could affect the collection of contractual cash flows. These scenarios consider the time value of money, relevant information available on past events, current conditions and forecasts of the macroeconomic factors considered important in estimating this amount (e.g. GDP, house prices and the unemployment rate, among others). Santander uses forward-looking information in internal management and regulatory processes under several scenarios. The Group's guidelines and governance seek synergy and consistency between these different processes. 2. Additional elements Additional elements will be required when necessary because they have not been captured under the two previous elements. This has included, among others, the analysis of sectors most affected if their impacts are not sufficiently captured by the macroeconomic scenarios. Also collective analysis techniques, when the potential impairment in a group of clients cannot be identified individually. With the elements indicated above, Grupo Santander has evaluated in each of the geographical areas the evolution of the credit quality of its customers, for the purposes of classifying them into stages and consequently calculating expected loss. Management overlays During 2025, the Group strengthened coverage across its portfolios by implementing overlays, mainly in Brazil, Chile and Mexico, where it increased the PMA buffer to anticipate the impact of the year’s model recalibrations, as well as other potential deviations. In addition, the Group gradually released the adjustments related to climate events, such as the Valencia dana experienced in late October 2024, in the case of Santander Spain and the Spanish DCB office. Overall, the amount of overlays at year-end 2025 remains immaterial compared with the Group’s total allowance for credit losses. Annual report 2025839 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Exposure and loan-loss reserves Then, considering the most relevant units of the Group (United Kingdom, Spain, United States, Brazil, also Chile, Mexico, Portugal, Poland, Argentina and Santander Consumer Finance), which represent approximately 96% of the total Group's provisions. The table below shows the loan-loss reserves associated with each stage as of 31 December 2025, 2024 and 2023. In addition, depending on the transactions credit quality, the exposure is divided into four categories according to Standard & Poor's rating scale: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Exposure and loan-loss reserves by stage | | | | | | EUR million | | | | | | | 2025 | | | | | Credit quality A | Stage 1 | Stage 2 | Stage 3 | Total | | From AAA to AA- | 121,023 | 2,295 | — | 123,318 | | From A+ to BB | 383,494 | 15,188 | — | 398,682 | | From BB- to B- | 300,108 | 47,292 | — | 347,400 | | CCC and below | 8,146 | 17,733 | 32,664 | 58,543 | | Total exposure B | 812,771 | 82,508 | 32,664 | 927,943 | | Loan-losses reservesC | 3,147 | 4,915 | 13,900 | 21,962 | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Exposure and loan-loss reserves by stage | | | | | | EUR million | | | | | | | 2024 | | | | | Credit quality A | Stage 1 | Stage 2 | Stage 3 | Total | | From AAA to AA- | 108,977 | 2,599 | — | 111,576 | | From A+ to BB | 431,544 | 16,600 | — | 448,144 | | From BB- to B- | 288,302 | 45,129 | — | 333,431 | | CCC and below | 10,431 | 17,088 | 32,901 | 60,420 | | Total exposureB | 839,254 | 81,416 | 32,901 | 953,571 | | Loan-losses reservesC | 3,276 | 4,715 | 13,669 | 21,660 | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Exposure and loan-loss reserves by stage | | | | | | EUR million | | | | | | | 2023 | | | | | Credit quality A | Stage 1 | Stage 2 | Stage 3 | Total | | From AAA to AA- | 147,065 | 2,261 | — | 149,326 | | From A+ to BB | 421,449 | 13,910 | — | 435,359 | | From BB- to B- | 262,954 | 41,237 | — | 304,191 | | CCC and below | 11,829 | 19,376 | 33,838 | 65,043 | | Total exposure B | 843,297 | 76,784 | 33,838 | 953,919 | | Loan-losses reservesC | 3,592 | 5,055 | 14,131 | 22,778 | 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). The remai ning units that form the totality of the Group exposure, account for EUR 93,731 million: EUR 89,094 million in stage 1; EUR 3,528 million in stage 2; and EUR 1,109 million in stage 3 (in 2024 EUR 80,541 million in stage 1; EUR 2,534 million in stage 2, and EUR 874 million in stage 3. In 2023, EUR 68,788 million in stage 1; EUR 1,504 million in stage 2, and EUR 658 million in stage 3), and loan-loss reserves totalled EUR 759 million, of which: EUR 213 million in stage 1; EUR 152 million for stage 2, and EUR 394 million in stage 3 (in 2024, EUR 165 million, EUR 117 million and EUR 295 million and in 2023, EUR 199 million, EUR 73 million and EUR 161 million in stage 1, stage 2 and stage 3, respectively). The remaining exposure, including all financial instruments not included before, amounts to EUR 834,911 million (EUR 665,476 million in 2024 and EUR 598,385 million in 2023), and it includes all undrawn authorized lines (loan commitments). As of 31 December 2025, the Group had EUR 334 million net of provisions (EUR 559 million and EUR 743 million at 31 December 2024 and 2023, respectively) of purchased credit-impaired assets, which relate mainly to the business combinations carried out by the Group. In relation to the evolution of credit risk provisions, the Group, together with its main geographies, monitors them through sensitivity analyses that assess the impact of changes in macroeconomic scenarios and their key variables on the allocation of financial assets across stages and on the measurement of credit risk provisions. Additionally, based on consistent macroeconomic scenarios, the Group also performs stress tests and sensitivity analysis in a regular basis, such as ICAAP, strategic plans, budgets and recovery and resolution plans. In this sense, a prospective view of the sensitivity of each of the Group’s loan portfolio is created in relation to the possible deviation from the base scenario, considering both the macroeconomic developments in different scenarios and the three year evolution of the business. These tests include potentially adverse and favourable scenarios. 3. Detail of the main geographical areas Following is the risk information related to the most relevant geographies in exposure and credit risk allowances. This information includes sensitivity analysis, consisting on simulations of +/-100 bp in the main macroeconomic variables. A set of specific and complete scenarios is used in each geography, where different shocks that affect both the reference macroeconomic variable as well as the rest of the parameters is simulated, with different intensities. These shocks collect mainly the most relevant risks and may be originated by productivity, tax, wages or exchange and interest rates factors. Sensitivity is measured as the average variation on expected loss corresponding to the aforementioned movement of +/-100 bp. Following a conservative approach, the negative movements take into account one additional standard deviation in order to reflect the potential higher variability of losses. 3.1. United Kingdom Portfolio overview Credit risk with customers in the UK remained stable in EUR 244,303 million. This credit risk represents 21% of Santander’s loan portfolio. At 1.08%, the NPL ratio decreased 25 bps in comparison to the year end of 2024, due to the good performance in the mortgage portfolio. Annual report 2025840 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Mortgage portfolio Because of its size, Grupo Santander closely monitor Santander UK’s mortgage portfolio for the entity itself and the Group. As of 31 December 2025, the mortgage portfolio of Santander UK remained stable, at local currency, and reached EUR 192,047 million. It co mprises residential mortgages granted to new and existing customers which are first lien mortgages. There are no second or more liens on mortgaged properties. Originations have increased in 2025 compared to 2024, a sign of a more active housing market due to lower interest rates and less pressure on households’ purchasing power. The housing market returned to growth in 2025, with a higher level of transactions and price increases compared to 2024. Under Santander's risk management principles, a property must be appraised independently before we can approve a new mortgage. In line with market practices and the law, we get updated values of properties used as mortgage collateral from an independent agency's automatic appraisal system. Santander UK's wide range of mortgages include: • Interest-only loans (21%): Customers pay interest every month and repay the principal at maturity. These mortgages, which are common in the UK, require borrowers to have an appropriate repayment vehicle, such as a pension plan or an investment fund. To mitigate inherent risk, Santander UK has restrictive approval requirements, such a maximum loan-to-value ratio of 50% and an assessment of the ability to pay both interest and capital. • Flexible loans (2%): Loan agreements allow borrowers to modify monthly payments or draw down additional funds up to a set limit under various conditions. • Buy-to-let (9% ): Buy-to-let mortgages account for a small portion of the total portfolio and are subject to strict risk approval policies. Santander’s NPL ratio highlights the resilience of the mortgage portfolio in a challenging economic environment and an intensely competitive market. It stood at 0.87% at the end of December 2025 (-20 bps YoY). At 31 December 2025, 82% of the mortgage portfolio had an LTV lower than 70%. Information on the estimation of impairment losses The detail of Santander's UK exposure and loan-loss reserves associated with each of the stages at 31 December 2025, 2024 and 2023, is shown below. In addition, the exposure is divided in four tranches of the Standard & Poor's rating scale, according to their current credit quality: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Exposure and loan-loss reserves by stage | | | | | | EUR million | | | | | | | 2025 | | | | | Credit qualityA | Stage 1 | Stage 2 | Stage 3 | Total | | From AAA to AA- | 29,963 | 381 | — | 30,344 | | From A+ to BB | 152,981 | 9,529 | — | 162,510 | | From BB- to B- | 17,630 | 8,770 | — | 26,400 | | CCC and below | 2 | 615 | 2,475 | 3,092 | | Total exposureB | 200,576 | 19,295 | 2,475 | 222,346 | | Loan-loss reservesC | 163 | 319 | 373 | 855 | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Exposure and loan-loss reserves by stage | | | | | | EUR million | | | | | | | 2024 | | | | | Credit quality A | Stage 1 | Stage 2 | Stage 3 | Total | | From AAA to AA- | 32,012 | 1,184 | — | 33,196 | | From A+ to BB | 159,970 | 10,916 | — | 170,886 | | From BB- to B- | 17,594 | 11,175 | — | 28,769 | | CCC and below | 12 | 695 | 3,292 | 3,999 | | Total exposure B | 209,588 | 23,970 | 3,292 | 236,850 | | Loan-loss reservesC | 166 | 401 | 400 | 967 | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Exposure and loan-loss reserves by stage | | | | | | EUR million | | | | | | | 2023 | | | | | Credit quality A | Stage 1 | Stage 2 | Stage 3 | Total | | From AAA to AA- | 46,236 | 1,273 | — | 47,509 | | From A+ to BB | 145,884 | 10,850 | — | 156,734 | | From BB- to B- | 13,588 | 13,995 | — | 27,583 | | CCC and below | — | — | 3,518 | 3,518 | | Total exposure B | 205,708 | 26,118 | 3,518 | 235,344 | | Loan-loss reservesC | 172 | 498 | 396 | 1,066 | 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 estimation of expected losses, prospective information is taken into account. Specifically, Santander UK considers four macroeconomic scenarios, which are updated periodically. The evolution forecasted in 2025 for the next five years of the main macroeconomic indicators used by Santander UK to estimate expected losses is presented below: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | 2026 - 2030 | | | | | | Variables | Pessimistic scenario 2 | Pessimistic scenario 1 | Base scenario | Optimistic scenario | | Interest rate | 2.4% | 3.5% | 3.3% | 3.0% | | Unemployment rate | 7.3% | 5.8% | 4.5% | 4.2% | | Housing price change | (2.9%) | (0.2%) | 2.9% | 4.4% | | GDP growth | (0.02%) | 0.2% | 1.4% | 2.4% | Annual report 2025841 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Each of the macroeconomic scenarios is associated with a given weight. In terms of allocation, Santander UK associates the highest weighting to the base scenario, while it associates the lowest weightings to the most extreme or severe scenarios. In addition, at 31 December 2025, 2023 and 2022, the weights used by Santander UK reflect the future prospects of the British economy in relation to its current political and economic position so that higher weights are assigned for negative scenarios: | | | | | | --- | --- | --- | --- | | | | | | | | 2025 | 2024 | 2023 | | Pessimistic scenario 3 | | 20% | 20% | | Pessimistic scenario 2 | 10% | 10% | 10% | | Pessimistic scenario 1 | 25% | 25% | 10% | | Base scenario | 50% | 50% | 50% | | Optimistic scenario | 15% | 15% | 10% | The sensitivity analysis of the main portfolios expected loss to variations of +/-100 bp for the macroeconomic variables used in the construction of the scenarios, as of December 2025, is as follows: | | | | | --- | --- | --- | | | | | | | Change in Provision | | | | Mortgages | Corporates | | GDP Growth | | | | -100 bps | 11.6% | 3.9% | | +100 bps | (2.9%) | (1.4%) | | Housing price change | | | | -100 bps | 7.3% | 6.0% | | +100 bps | (3.5%) | (1.6%) | | Unemployment rate | | | | -100 bps | (12.3%) | (2.5%) | | +100 bps | 23.7% | 5.7% | With regard to Stage 2 classification, Santander UK applies quantitative criteria based on identifying an increase in lifetime probability of default (PD) for the transaction that exceeds both an absolute and a relative threshold. The PDs used in this assessment are adjusted to the transaction’s remaining term and annualised to facilitate the definition of thresholds that cover the full range of transaction maturities. The relative threshold is common across all portfolios, and Santander UK considers that a transaction exceeds this threshold when its lifetime PD increases by 100% compared to the PD at initial recognition. The absolute threshold, by contrast, differs across portfolios depending on the characteristics of the transactions. In addition, each portfolio has a set of specific qualitative criteria indicating that the exposure has experienced a significant increase in credit risk, irrespective of the evolution of its PD since initial recognition. Among other criteria, Santander UK considers that a transaction shows a significant increase in credit risk when it is more than 30 days past due. It also has implemented early warning indicator system to support Stage 2 classification. These criteria align with the risk management practices of each portfolio. 3.2. Spain P ortfolio overview Santander España’s credit risk totalled EUR 302,271 million (26% % of Grupo Santander’s total). It is appropriately diversified among products and customer segments. The NPL ratio was 1.96%, 73 bps lower than in December 2024. This decrease was driven by the portfolio’s strong performance, supported by the execution of the NPL reduction plan. The NPL coverage ratio increased slightly to 55% (+2 p.p. year-on- year). The cost of risk decreased to 0.44% (-7 bps vs. December 2024), driven by the strong performance of the SME and corporate portfolios, partly offset by the performance of the individuals portfolio. Macroeconomic projections suggest the economy will moderate its growth pace slightly, but will remain dynamic and well above the eurozone average, as the Spanish economy has largely been supported by stronger domestic demand amid a weaker-than- expected external sector. Residential mortgage portfolio Residential mortgages in Spain, including Santander Consumer Finance business, amounted to EUR 60,002 million in 2025 (EUR 59,316 million and EUR 61,097 million in 2024 and 2023, respectively), 99.64% of which have a mortgage guarantee (99.65%and 99.65% in 2024 and 2023, respectively). | | | | | --- | --- | --- | | | | | | | 2025 | | | EUR Million | Gross amount | Of which: impaired | | Home purchase loans to families | 60,002 | 625 | | Without mortgage collateral | 215 | 7 | | With mortgage collateral | 59,787 | 618 | | | | | | --- | --- | --- | | | | | | | 2024 | | | EUR Million | Gross amount | Of which: impaired | | Home purchase loans to families | 59,316 | 789 | | Without mortgage collateral | 208 | 11 | | With mortgage collateral | 59,108 | 778 | | | | | | --- | --- | --- | | | | | | | 2023 | | | EUR Million | Gross amount | Of which: impaired | | Home purchase loans to families | 61,097 | 924 | | Without mortgage collateral | 215 | 16 | | With mortgage collateral | 60,882 | 908 | Annual report 2025842 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The NPL ratio for the residential mortgages portfolio stood at 1.03%, with a reduction of 29 bps, compared to 31 December 2024, mainly due to by portfolio sales, although credit risk registered an increase of 1.2% compared to December 2024. The mortgage portfolio for the acquisition of homes in Spain is characterised by its medium-low risk profile, which limits expectations of any potential additional impairment: • Principal is repaid on all mortgages from the start. • Early repayment is common so the average life of the transaction is well below that of the contract. • High quality of collateral, concentrated almost exclusively in financing for first homes. • The average affordability rate is reduce to 22% (24% and 24% in 2024 and 2023, respectively). • The 94% of the portfolio has a LTV below 80% calculated as total risk/latest available house appraisal. • All customers applying for a residential mortgage are subject to a rigorous credit risk and viability assessment, analysing whether their income is sufficient to meet all repayments and will remain stable over the term of the loan. Breakdown of the credit with mortgage guarantee to households for house acquisition, according to the percentage that the total risk represents on the amount of the latest available valuation (loan to value): | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | 2025 | | | | | | | | Loan to value ratio | | | | | | | EUR Million | Less than or equal to 40% | More than 40% and less than 60% | More than 60% and less than 80% | More than 80% and less than or equal to 100% | More than 100% | Total | | Gross amount | 17,191 | 20,310 | 18,811 | 2,812 | 663 | 59,787 | | Of which impaired | 122 | 158 | 151 | 84 | 103 | 618 | In November 2022, Royal Decree-Law 19/2022 was published, which establishes a Code of Good Practices in response to the rise in interest rates on mortgage loans for primary residences and Royal Decree-Law 6/2012 of protection measures for mortgage debtors without resources. The code of good practices is focused on granting capital grace periods and extending the term of the operations. The requests made have not been significant. Corporate & SME financing Credit risk with SME and corporates in commercial banking amounted to EUR 99,395 million, lower than December 2024, mainly due to the fall in the portfolio of SMEs of 10.1%. This portfolio accounting for 33% of the total, compared to 41% of CIB's portfolio, which from 2022 includes branches in Europe. Most of the portfolio corresponds to clients who have been assigned a credit analyst, who performs continuous management of said clients during all phases of the risk cycle. The portfolio is broadly diversified and not concentrated by sector of activity. The ICO loans that were granted as a result of the pandemic (25,428 million euros) are being repaid normally and there is a balance of EUR 10,857 million, so they now represent only around 3.6% of Santander Spain's total portfolio. During 2025, Santander Spain maintained its support and close engagement with SMEs and the self-employed through the various support lines, which were significantly less material than the post-pandemic programmes (Líneas ICO Empresas y Emprendedores, Línea ICO Internacional y Rehabilitación de vivienda). In the case of delinquent operations with ICO guarantee, the transfer of the overdue guaranteed amounts will take place as the guarantee is executed, regardless of whether the guarantor is subrogated to the right to receive said amounts, according to the regulation of these guarantees. The de-recognition of the transferred guaranteed amounts will entail the recognition, at its fair value, of a collection right against the guarantor. Annual report 2025843 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The portfolio’s NPL ratio stood at 4.10% in December 2025. The NPL ratio decreased by 97 bps compared to December 2024, largely due to a proactive effort to reduce the stock of NPLs in the SME portfolio, through proactive management of non-performing exposures supported by portfolio sales and the management of specific cases. Real estate activity Santander has specialized teams that are in charge of managing real estate business production and risk areas that cover the entire life cycle of these operations. The changes in gross property development loans to customers were as follows: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Balance at beginning of year | 2,545 | 2,433 | 2,327 | | Foreclosed assets | — | — | (1) | | Net variation | 441 | 112 | 115 | | Written-off assets | (2) | — | (8) | | Balance at end of year | 2,984 | 2,545 | 2,433 | The NPL ratio of this portfolio (considering only the on balance amount) ended the year at 1.04% (compared with 2.28% and 3.04% at December 2024 and 2023, respectively) . The table below shows the distribution of the portfolio. The coverage ratio of the real estate doubtful exposure in Spain stands at 35.48% (36.21% and 39.19% in 2024 and 2023, respectively). | | | | | | --- | --- | --- | --- | | | | | | | | 2025 | | | | EUR Million | Gross amount | Excess of gross exposure over maximum recoverable amount of effective collateral | Specific allowance | | Financing for construction and property development (including land) (business in Spain) | 2,984 | 211 | 17 | | Of which impaired | 31 | — | 11 | | Memorandum items written-off assets | 240 | — | — | | | | | --- | --- | | | | | Memorandum items: Data from the public consolidated balance sheet | | | | 2025 | | EUR Million | Carrying amount | | Total loans and advances to customers excluding the Public sector (business in Spain) (Book value) | 240,609 | | Total consolidated assets (Total business) (Book value) | 1,867,515 | | Impairment losses and credit risk allowances. Coverage for unimpaired assets (business in Spain) | 1,086 | At year-end, the distribution of this portfolio was as follows: | | | | --- | --- | | | | | | 2025 | | EUR Million | Loans: gross amount | | 1. Without mortgage guarantee | 14 | | 2. With mortgage guarantee | 2,970 | | 2.1 Completed buildings | 976 | | 2.1.1 Residential | 658 | | 2.1.2 Other | 318 | | 2.2 Buildings and other constructions under construction | 1,981 | | 2.2.1 Residential | 1,913 | | 2.2.2 Other | 68 | | 2.3 Land | 13 | | 2.3.1 Developed consolidated land | 9 | | 2.3.2 Other land | 4 | | Total | 2,984 | Foreclosed properties At 31 December 2025, the net balance of these assets amounted to EUR 1,898 million (EUR 2,131 million and EUR 2,448 million at 31 December 2024 and 2023, respectively), gross amount of EUR 4,258 million (EUR 4,823 million and EUR 5,506 million at 31 December 2024 and 2023, respectively); recognised allowance of EUR 2,360 million (EUR 2,692 million and EUR 3,058 million at 31 December 2024 and 2023, respectively). Annual report 2025844 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The following table shows the detail of the assets foreclosed by the businesses in Spain at the end of 2025: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | 2025 | | | | | EUR Million | Gross carrying amount | Valuation adjustments | Of which impairment losses on assets since time of foreclosure | Net Carrying amount | | Property assets arising from financing provided to construction and property development companies | 3,843 | 2,144 | 1,591 | 1,699 | | Of which: | | | | | | Completed buildings | 481 | 324 | 282 | 157 | | Residential | 129 | 71 | 60 | 58 | | Other | 352 | 253 | 222 | 99 | | Buildings under construction | 107 | 49 | 35 | 58 | | Residential | — | — | — | — | | Other | 107 | 49 | 35 | 58 | | Land | 3,255 | 1,771 | 1,274 | 1,484 | | Developed land | 776 | 429 | 260 | 347 | | Other land | 2,479 | 1,342 | 1,014 | 1,137 | | Property assets from home purchase mortgage loans to households | 334 | 172 | 119 | 162 | | Other foreclosed property assets | 81 | 44 | 36 | 37 | | Total property assets | 4,258 | 2,360 | 1,746 | 1,898 | In addition, the Group has shareholdings in entities holding foreclosed assets amounting to EUR 36 million and equity instruments foreclosed or received in payment of debts amounting to EUR 10 million. In recent years, the Group has considered foreclosure to be an option to resolve cases of default instead of legal proceedings. The Group initially recognises foreclosed assets at the lower of the carrying amount of the debt (net of provisions) and the fair value of the foreclosed asset (less estimated costs to sell). Subsequent to initial recognition, the assets are measured at the lower of fair value (less costs to sell) and the amount initially recognised. The fair value of this type of assets is determined by the market value (appraisal) adjusted with discounts obtained according to internal valuation methodologies based on the entity's sales experience in goods with similar characteristics. The management of real estate assets on the balance sheet is carried out through companies specializing in the sale of real estate that is complemented by the structure of the commercial network. The sale is realised with at prices in accordance with the market situation and the offer of wholesale buyers. The gross movement in foreclosed properties were as follows (EUR billion): | | | | | | --- | --- | --- | --- | | | | | | | | EUR Billion | | | | | 2025 | 2024 | 2023 | | Gross additions | 0.1 | 0.1 | 0.3 | | Disposals | (0.7) | (0.8) | (1.2) | | Difference | (0.6) | (0.7) | (0.9) | Information on the estimation of impairment losses The detail of Santander Spain exposure and loan-loss reserves associated with each of the stages at 31 December, 2025, 2024 and 2023, is shown below. In addition, the exposure is divided in four tranches of the Standard & Poor's rating scale, according to their current credit quality: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Exposure and loan-loss reserves by stage | | | | | | EUR million | | | | | | | 2025 | | | | | Credit quality A | Stage 1 | Stage 2 | Stage 3 | Total | | From AAA to AA- | 35,407 | 171 | — | 35,578 | | From A+ to BB | 109,001 | 1,453 | — | 110,454 | | From BB- to B- | 37,089 | 8,262 | — | 45,351 | | CCC and below | 2,189 | 1,680 | 5,761 | 9,630 | | Total exposureB | 183,686 | 11,566 | 5,761 | 201,013 | | Loan-loss reservesC | 382 | 483 | 2,204 | 3,069 | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Exposure and loan-loss reserves by stage | | | | | | EUR million | | | | | | | 2024 | | | | | Credit quality A | Stage 1 | Stage 2 | Stage 3 | Total | | From AAA to AA- | 35,347 | 110 | — | 35,457 | | From A+ to BB | 104,197 | 1,124 | — | 105,321 | | From BB- to B- | 37,413 | 8,844 | — | 46,257 | | CCC and below | 2,084 | 3,199 | 6,618 | 11,901 | | Total exposureB | 179,041 | 13,277 | 6,618 | 198,936 | | Loan-loss reservesC | 340 | 570 | 2,953 | 3,863 | Annual report 2025845 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Exposure and loan-loss reserves by stage | | | | | | EUR million | | | | | | | 2023 | | | | | Credit quality A | Stage 1 | Stage 2 | Stage 3 | Total | | From AAA to AA- | 46,827 | 48 | | 46,875 | | From A+ to BB | 101,079 | 780 | | 101,859 | | From BB- to B- | 33,905 | 9,789 | | 43,694 | | CCC and below | 1,513 | 4,517 | 7,536 | 13,566 | | Total exposureB | 183,324 | 15,134 | 7,536 | 205,994 | | Loan-loss reservesC | 300 | 663 | 2,959 | 3,922 | A. Detail of credit quality ratings calculated for Group management purposes. Excluding the SCIB branches business 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 estimation of the expected losses, the prospective information is taken into account. Specifically, Santander Spain considers three macroeconomic scenarios, which are updated periodically. The projected evolution for a period of five years of the main macroeconomic indicators used by Santander Spain for estimating expected losses as of 2025, is presented below: | | | | | | --- | --- | --- | --- | | | | | | | | 2026-2030 | | | | Variables | Pessimistic scenario | Base scenario | Optimistic scenario | | Interest rate | 2.7% | 2.5% | 2.3% | | Unemployment rate | 12.1% | 9.7% | 8.2% | | Housing price change | 3.3% | 4.1% | 4.7% | | GDP growth | 0.2% | 1.6% | 2.4% | Each macroeconomic scenarios is associated with a given weight. As for its allocation, Santander Spain associates the Base scenario with the highest weight, while associating the lower weights to the most extreme scenarios: | | | | | | --- | --- | --- | --- | | | | | | | | 2025 | 2024 | 2023 | | Pessimistic scenario | 30% | 30% | 30% | | Base scenario | 40% | 40% | 40% | | Optimistic scenario 1 | 30% | 30% | 30% | The sensitivity analysis of the main portfolios expected loss to variations of +/-100 bp for the macroeconomic variables used in the construction of the scenarios, at December 31 2025, is as follows: | | | | | | --- | --- | --- | --- | | | | | | | | Change in Provision | | | | | Mortgages | Corporates | Others | | GDP Growth | | | | | -100 bps | 8.5% | 1.1% | 2.1% | | +100 bps | (3.6%) | (0.9%) | (1.9%) | | Housing price change | | | | | -100 bps | 8.4% | 1.5% | 3.4% | | +100 bps | (6.7%) | (0.7%) | (1.8%) | | Unemployment rate | | | | | -100 bps | (6.0%) | (1.5%) | (3.7%) | | +100 bps | 14.7% | 1.8% | 4.7% | To determine Stage 2 classification, Santander Spain applies quantitative criteria based on identifying increases in the lifetime PD of an exposure above a relative or absolute threshold. The threshold differs by portfolio depending on the characteristics of the exposures, and an exposure is considered to exceed the threshold when its lifetime PD increases by a set amount compared with the PD at initial recognition. Santander Spain calibrates these thresholds periodically, as described in previous paragraphs. In addition, Santander Spain applies a backstop to the relative threshold across all portfolios. As a result, Santander Spain classifies contracts as Stage 2 when their current PD has increased by more than two times compared with the PD at origination. Santander Spain also considers specific qualitative criteria that indicate a significant increase in credit risk, regardless of how the PD has evolved since initial recognition. Among other criteria, Santander Spain considers that an exposure shows a significant increase in credit risk when it is more than 30 days past due or when its early warning system so determines. 3.3. United States Portfolio overview Santander US’s credit risk stood at EUR 147,303 million at the end of December 2025. It makes up 12.5% of Grupo Santander's total credit risk. The NPL ratio grew to 4.85% (+14 bps in the year) due to a higher stock of delinquencies and lower portfolio growth, and the cost of risk decreased to 1.63% (-19 bps in the year). Santander US includes the following business units: Santander Bank, National Association (SBNA) In 2025 lending amounted to EUR 45,491 million (representing 4% of the Group's credit risk) and presents a reduction of 15% in 2025, mainly due to the transfer of the CIB portfolio to the New York branch. The NPL ratio increased to 2.67% (+46 bps vs December 2024, while the cost of risk rose to 0.93% (+2 bps in the year), mainly driven by the Consumer Finance portfolio. Activity in the individuals segment is primarily focused on auto financing and leasing, as well as credit card origination. During 2025, the teams continued to develop the operating and systems capabilities that will enable the asset product offering to be expanded in the future through the Openbank brand. The Commercial segment comprises seven business lines, including Commercial Real Estate, Santander Real Estate Capital, Commercial Equipment Vehicle Finance, and Commercial and Industrial. The portfolio shows a slight downward trend in exposure, driven, on the one hand, by a strategy that prioritises risk-adjusted profitability over volume growth and, on the other, by the gradual run-down of the real estate and dealer portfolios. The credit risk profile of the Commercial Real Estate and dealer portfolios shows some deterioration, mainly due to structural uncertainties affecting these sectors, as well as the impact of an interest-rate environment that remains elevated and developments in commercial and tariff policies, which continue to weigh on the financial capacity of certain customers. Annual report 2025846 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Information on the estimation of impairment losses The detail of Santander Bank, National Association exposure and loan-loss reserves associated with each of the stages at 31 December, 2025, 2024 and 2023 is shown below. In addition, the exposure is divided in four tranches of the Standard & Poor's rating scale, according to their current credit quality: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Exposure and loan-loss reserves by stage | | | | | | EUR million | | | | | | | 2025 | | | | | Credit quality A | Stage 1 | Stage 2 | Stage 3 | Total | | From AAA to AA- | 1,622 | 24 | — | 1,646 | | From A+ to BB | 7,352 | 728 | — | 8,080 | | From BB- to B- | 28,758 | 4,459 | — | 33,217 | | CCC and below | 779 | 861 | 1,158 | 2,798 | | Total exposureB | 38,511 | 6,072 | 1,158 | 45,741 | | Loan-loss reservesC | 277 | 325 | 202 | 804 | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Exposure and loan-loss reserves by stage | | | | | | EUR million | | | | | | | 2024 | | | | | Credit quality A | Stage 1 | Stage 2 | Stage 3 | Total | | From AAA to AA- | 4,215 | 277 | — | 4,492 | | From A+ to BB | 21,422 | 930 | — | 22,352 | | From BB- to B- | 21,899 | 3,855 | — | 25,754 | | CCC and below | 33 | 482 | 1,130 | 1,645 | | Total exposureB | 47,569 | 5,544 | 1,130 | 54,243 | | Loan-loss reservesC | 292 | 364 | 182 | 838 | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Exposure and loan-loss reserves by stage | | | | | | EUR million | | | | | | | 2023 | | | | | Credit quality A | Stage 1 | Stage 2 | Stage 3 | Total | | From AAA to AA- | 4,834 | 76 | — | 4,910 | | From A+ to BB | 20,468 | 459 | — | 20,927 | | From BB- to B- | 25,312 | 3,439 | — | 28,751 | | CCC and below | 52 | 450 | 894 | 1,396 | | Total exposure B | 50,666 | 4,424 | 894 | 55,984 | | Loan-loss reservesC | 409 | 335 | 141 | 885 | 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 REPO, FV portfolio, trading portfolio and undrawn commitments. C. Includes provisions for undrawn authorized lines (loan commitments). For the estimation of expected losses, prospective information is taken into account. Specifically, Santander Bank, National Association considers four macroeconomic scenarios, which are updated periodically. The evolution projected in 2025 for a period of five years of the main macroeconomic indicators used Santander Bank, National Association to estimate expected losses is presented below: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | 2026-2030 | | | | | Variables | Pessimistic scenario 2 | Pessimistic scenario 1 | Base scenario | Optimistic scenario | | Interest rate (annual averaged) | 1.8% | 2.6% | 3.2% | 3.0% | | Unemployment rate | 6.4% | 5.0% | 4.2% | 3.7% | | House price change | 0.2% | 0.7% | 1.3% | 2.1% | | GDP growth | 1.7% | 1.9% | 2.0% | 2.7% | | Manheim growth A | (0.6%) | (0.1%) | 0.3% | 0.1% | A. US used vehicle price car index. Each of the macroeconomic scenarios is associated with a given weight. As for its allocation, Santander Bank, National Association associates the highest weighting to the Base scenario, while associates the lowest weightings to the most extreme scenarios: | | | | | | --- | --- | --- | --- | | | | | | | | 2025 | 2024 | 2023 | | Pessimistic scenario 2 | 18% | 18% | 18% | | Pessimistic scenario 1 | 20% | 20% | 20% | | Base scenario | 33% | 33% | 33% | | Optimistic scenario | 30% | 30% | 30% | The sensitivity analysis of the main portfolios expected loss to variations of +/-100 bp for the macroeconomic variables used in the construction of the scenarios as of 2025 is as follows: | | | | | | --- | --- | --- | --- | | | | | | | | Change in Provision | | | | | Mortgages | Corporates | Auto | | GDP Growth | | | | | -100 bps | 13.6% | 10.9% | 2.8% | | +100 bps | (10.6%) | (7.7%) | (2.0%) | | Housing price change | | | | | -100 bps | 26.9% | 18.7% | 5.0% | | +100 bps | (12.9%) | (9.3%) | (2.5%) | | Unemployment rate | | | | | -100 bps | (41.6%) | (25.9%) | (7.9%) | | +100 bps | 53.9% | 39.5% | 11.8% | | Manheim index | | | | | -100 bps | — | — | 1.8% | | +100 bps | —% | —% | (1.4%) | For the Stage 2 classification determination, this year SBNA implemented, within the Auto portfolio, a system based on the comparison of PD to determine whether there has been a significant increase in credit risk. SBNA set both relative and absolute thresholds, segmented by the customer’s credit profile, and also established a backstop to the relative threshold. As a result, SBNA will classify as Stage 2 those contracts whose current PD has increased by more than two times compared to their PD at origination. For the remaining retail portfolios, SBNA uses the FICO (Fair Isaac Corporation) score as a quantitative criterion as a proxy for PD, considering the score at origination and its current value, and setting different limits or cut-off points depending on each portfolio’s characteristics. A significant increase in risk requires changes in the score of around 120 bps and 20 bps. Annual report 2025847 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | For wholesale portfolios, SBNA uses the transaction’s rating as a proxy for PD, considering the rating at origination and its current rating, and setting thresholds for different rating bands depending on each portfolio’s characteristics. In addition, SBNA defines specific qualitative criteria to identify exposures that have recorded a significant increase in credit risk. Among other criteria, Santander Bank, National Association considers that a transaction presents a significant increase in credit risk when it has arrears positions for more than 30 days or when a system of early warning indicators determines it. Santander Consumer USA Inc. Santander Consumer USA Inc. (SC USA) presents higher risk indicators than other Santander US units due to the nature of its business, which focuses on auto finance via loans and leasing. At 31 December 2025, lending amounted to EUR 25,318 million (representing 2.1% of the Group) and presents a decrease of 17.5% regarding December 2024. Regarding the NPL ratio, it increased to 22.08% (+340 bps in the year); and the cost of risk stood at 6.10% (-51 bps YoY). NPL coverage ratio fell to 53% (-885 pp in the year), in line with the percentages of transfers from default to bad debts, which are at historically low levels. The business focuses on optimising the profitability-to-risk relationship through pricing management aligned with each customer’s credit quality and each transaction, while also strengthening dealer processes and the dealer experience. 2025 was marked by uncertainty stemming from tariff policy and fiscal stimulus measures, as well as the end of the exclusivity agreement with Stellantis. Information on the estimation of impairment losses The detail of Santander Consumer USA Inc. exposure and loan-loss reserves associated with each of the stages at 31 December 2025, 2024 and 2023, is shown below. In addition, the exposure is divided in four tranches of the Standard & Poor's rating scale, according to their current credit quality: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Exposure and loan-loss reserves by stage | | | | | | EUR million | | | | | | | 2025 | | | | | Credit quality A | Stage 1 | Stage 2 | Stage 3 | Total | | From AAA to AA- | — | — | — | — | | From A+ to BB | 54 | — | — | 54 | | From BB- to B- | 10,167 | 947 | — | 11,114 | | CCC and below | 3,577 | 4,871 | 5,588 | 14,036 | | Total exposure B | 13,798 | 5,818 | 5,588 | 25,204 | | Loan-loss reservesC | 419 | 910 | 1,688 | 3,017 | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Exposure and loan-loss reserves by stage | | | | | | EUR million | | | | | | | 2024 | | | | | Credit quality A | Stage 1 | Stage 2 | Stage 3 | Total | | From AAA to AA- | — | — | — | — | | From A+ to BB | 202 | — | — | 202 | | From BB- to B- | 12,802 | 451 | — | 13,253 | | CCC and below | 7,259 | 4,226 | 5,729 | 17,214 | | Total exposure B | 20,263 | 4,677 | 5,729 | 30,669 | | Loan-loss reservesC | 630 | 1,006 | 1,908 | 3,544 | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Exposure and loan-loss reserves by stage | | | | | | EUR million | | | | | | | 2023 | | | | | Credit quality A | Stage 1 | Stage 2 | Stage 3 | Total | | From AAA to AA- | — | — | — | — | | From A+ to BB | 99 | 0 | — | 99 | | From BB- to B- | 12,120 | 395 | — | 12,515 | | CCC and below | 6,754 | 4,237 | 5,272 | 16,263 | | Total exposure B | 18,973 | 4,632 | 5,272 | 28,877 | | Loan-loss reservesC | 597 | 1,019 | 1,712 | 3,328 | 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 four macroeconomic scenarios, periodically updated over a 5-year time horizon. The evolution forecasted in 2025 for a period of five years of the main macroeconomic indicators used by in SC USA in the estimation of expected losses is shown below: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | 2026-2030 | | | | | Variables | Pessimistic scenario 2 | Pessimistic scenario 1 | Base scenario | Optimistic scenario | | Interest rate (annual averaged) | 1.8% | 2.6% | 3.2% | 3.0% | | Unemployment rate | 6.4% | 5.0% | 4.2% | 3.7% | | House price change | 0.2% | 0.7% | 1.3% | 2.1% | | GDP growth | 1.7% | 1.9% | 2.0% | 2.7% | | Manheim A index | (0.6%) | (0.1) | 0.3% | 0.1% | A. US used vehicle price car index. Each of the macroeconomic scenarios is associated with a given weight. Santander Consumer USA Inc. associates the highest weighting to the Base scenario, whereas it associates the lowest weightings to the most extreme or acid scenarios: | | | | | | --- | --- | --- | --- | | | | | | | | 2025 | 2024 | 2023 | | Pessimistic scenario 2 | 18% | 18% | 18% | | Pessimistic scenario 1 | 20% | 20% | 20% | | Base scenario | 33% | 33% | 33% | | Optimistic scenario | 30% | 30% | 30% | Annual report 2025848 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The sensitivity analysis of the main portfolios expected loss to variations of +/-100 bp for the macroeconomic variables used in the construction of the scenarios at the end of 2025 is as follows: | | | | --- | --- | | | | | | Change in provision | | | SC Auto | | Manheim index | | | -100 bps | 1.0% | | +100 bps | (0.8%) | | Unemployment Rate | | | -100 bps | (4.9%) | | +100 bps | 7.0% | | House Price Change | | | -100 bps | 3.1% | | +100 bps | (1.6%) | | GDP growth | | | -100 bps | 1.7% | | +100 bps | (1.2%) | In relation to the Stage 2 classification determination, SC USA implemented a new system based on the comparison of PDs at origination and current PD, replacing the previous approach based on the FICO (Fair Isaac Corporation) score. SC USA established a set of absolute and relative thresholds, segmented based on the customer’s credit profile. Finally, it introduced a backstop to the relative threshold whereby contracts whose current PD has increased by more than two times compared to their PD at origination are classified as Stage 2. Additionally, for each portfolio, a series of specific qualitative criteria are defined, which indicate that the exposure has experienced a significant increase in credit risk, regardless of the evolution of its PD since the initial recognition. Among other criteria, the entity considers that a transaction has experienced a significant increase in credit risk when it has past-due positions for more than 30 days. These criteria align with the risk management practices of each portfolio. 3.4. Banco Santander (Brasil) S.A. Portfolio overview Santander Brasil's credit risk amounted to EUR 105,410 million, increasing 1% from 2024. Minus the exchange rate effect, it grew by 1.3%. As of December 2025, Santander Brasil accounts for 9% of Grupo Santander's loan book. The NPL ratio went from 6.14% in December 2024 to 6.82% in December 2025, and the coverage ratio increased from 82.8% to 83.4%. As of 31 December 2025 loan-loss provisions reached EUR 4,409 million, a 2% year-on-year decrease. Cost of risk increased from 4.51% in 2024 to 4.73% in 2025. In 2025, the Brazilian economy is moderating compared to the previous year. Several factors drive this performance: reduced fiscal support, a more restrictive monetary policy and a less favourable external environment. The labour market still shows resilience, which has helped prevent a sharp deterioration in household consumption. However, some indicators suggest that this labour-market momentum is starting to cool, with private-sector employment growth gradually easing. Inflation is expected to close the year at around 4.8%, with a trend towards further moderation in 2026. A moderate appreciation of the Brazilian real and weaker domestic demand contribute to this price moderation. The Brazilian real exchange rate remains a source of uncertainty, together with public debt sustainability and the need for fiscal adjustments to contain financial imbalances. From a sectoral perspective, the agricultural sector and certain industrial segments continue to provide relevant support, although the overall slowdown and the effects of tighter monetary conditions limit their contribution to aggregate growth. Against this backdrop, although Brazil retains a relatively solid base — a robust labour market and competitive export sectors — 2025 is shaping up as a transition year, with the economy slowing and facing multiple structural challenges (inflation, exchange rate, debt and monetary policy) that condition its performance. The retail segment (without Consumer Finance), which represents 37% of Santander Brazil's total portfolio, mainly comprises mortgages and credit cards (29% and 26% of the total portfolio, respectively). Thanks to the risk mitigation measures implemented in origination and portfolio management, cost of risk has been kept at 4.7%, despite the high SELIC rate and inflation running above the official target, which reduces individuals’ repayment capacity. In the SME segment, which represents 11% of total risk exposure, the Bank maintained the restrictive origination measures adopted in recent years, particularly for the higher-risk profiles with weaker performance. Teams continuously review and adjust strategies to keep credit quality within expected levels. Overall, they achieved this during the year, with an acceptable performance of new business indicators. In Brazil’s corporate segment, 2025 was marked by an uncertain geopolitical backdrop and some weaknesses in the local economy, notably high interest rates that have affected the repayment capacity of more leveraged companies. In this environment, the portfolio’s growth slowed and NPL and cost of risk levels increased. Annual report 2025849 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Information on the estimation of impairment losses The detail of Banco Santander (Brasil) S.A. exposure and loan-loss reserves associated with each of the stages at 31 December 2025, 2024 and 2023, is shown below. In addition, the exposure is divided in four tranches of the Standard & Poor's rating scale, according to their current credit quality: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Exposure and loan-loss reserves | | | | | | EUR million | 2025 | | | | | Credit quality A | Stage 1 | Stage 2 | Stage 3 | Total | | From AAA to AA- | 16,898 | 1,513 | — | 18,411 | | From A+ to BB | 29,179 | 1,253 | — | 30,432 | | From BB- to B- | 36,089 | 7,035 | — | 43,124 | | CCC and below | 1,217 | 3,801 | 7,151 | 12,169 | | Total exposureB | 83,383 | 13,602 | 7,151 | 104,136 | | Loan-loss reservesC | 648 | 1,128 | 4,216 | 5,992 | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Exposure and loan-loss reserves | | | | | | EUR million | | | | | | | 2024 | | | | | Credit quality A | Stage 1 | Stage 2 | Stage 3 | Total | | From AAA to AA- | 19,557 | 970 | — | 20,527 | | From A+ to BB | 32,824 | 1,637 | — | 34,461 | | From BB- to B- | 33,655 | 5,285 | — | 38,940 | | CCC and below | 423 | 2,808 | 6,382 | 9,613 | | Total exposureB | 86,459 | 10,700 | 6,382 | 103,541 | | Loan-loss reservesC | 687 | 860 | 3,766 | 5,313 | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Exposure and loan-loss reserves | | | | | | EUR million | | | | | | | 2023 | | | | | Credit quality A | Stage 1 | Stage 2 | Stage 3 | Total | | From AAA to AA- | 20,670 | 468 | — | 21,138 | | From A+ to BB | 38,869 | 751 | — | 39,620 | | From BB- to B- | 36,107 | 4,177 | — | 40,284 | | CCC and below | 1,153 | 3,735 | 7,479 | 12,367 | | Total exposureB | 96,799 | 9,131 | 7,479 | 113,409 | | Loan-loss reservesC | 722 | 1,078 | 4,538 | 6,338 | 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 is taken into account. Particularly, Santander Brazil considers three macroeconomic scenarios, periodically updated. The evolution for a period of five years of the main macroeconomic indicators used to estimate the expected losses in Santander Brazil is as follows: | | | | | | --- | --- | --- | --- | | | | | | | | 2026-2030 | | | | Variables | Pessimistic scenario | Base scenario | Optimistic scenario | | Interest rate (annual averaged) | 11.5% | 10.9% | 10.3% | | Unemployment rate | 8.0% | 6.5% | 5.4% | | House price change | 1.1% | 5.9% | 10.3% | | GDP growth | (0.2%) | 1.9% | 3.8% | | Burden income | 27.0% | 26.8% | 26.1% | Each macroeconomic scenario is associated with a given weight. Regarding its assignation, Brazil links the highest weight to the base scenario whilst links the lowest weights to the most extreme scenarios: | | | | | | --- | --- | --- | --- | | | | | | | | 2025 | 2024 | 2023 | | Pessimistic scenario | 13% | 13% | 10% | | Base scenario | 75% | 75% | 80% | | Optimistic scenario | 13% | 13% | 10% | The sensitivity analysis of the main portfolios expected loss to variations of +/-100 bp for the macroeconomic variables used in the construction of the scenarios is at the end of 2025 as follows: | | | | | | --- | --- | --- | --- | | | | | | | | Change in provision | | | | | Individuals | SME | Other | | GDP growth | | | | | -100 bps | 1.3% | 2.9% | 2.6% | | +100 bps | (0.7%) | (1.3%) | (1.4%) | | Unemployment rate | | | | | +100 bps | (1.9%) | (3.8%) | (4.5%) | | +100 bps | 2.8% | 6.2% | 6.3% | | Interest rate (SELIC) | | | | | -100 bps | (0.6%) | (1.6%) | (0.9%) | | +100 bps | 1.7% | 4.0% | 3.5% | Regarding the Stage 2 classification determination, Santander Brasil assesses whether the increase in lifetime PD over the expected life of the transaction exceeds the combined effect of an absolute and a relative threshold. These thresholds vary by portfolio, depending on the characteristics of the transactions. A transaction is deemed to breach the threshold when its lifetime PD increases by a specified amount compared to the PD recorded at initial recognition. The absolute and relative threshold levels are recalibrated periodically and depend on the type of portfolio to which they apply. In addition, Santander Brasil has implemented a backstop to the relative threshold across all portfolios: contracts whose current PD doubles the PD at origination are automatically classified as Stage 2. Annual report 2025850 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 4. Other credit risk aspects 4.1. Credit risk by activity in the financial markets This section covers credit risk from treasury, with money market financing and counterparty risk products to satisfy the needs of customers (especially credit institutions) and the Group. Counterparty credit risk is defined as the risk that could arise from a total or partial failure to meet the financial obligations entered into with the entity, because a customer may default before the final settlement of the transaction’s cash flows. This risk usually increases the longer the period between the trade date and the settlement date. It is a bilateral credit risk that can affect both parties to the transaction, and its magnitude is uncertain, as it depends on volatile market factors. Within counterparty credit risk exposure, an additional risk known as wrong-way risk may arise. It occurs when exposure to a portfolio or counterparty increases at the same time as its credit quality deteriorates. In other words, wrong-way risk exists when default risk increases and, as a result, the exposure to the counterparty also increases. Santander has specific models to measure and control this risk. Settlement risk arises when the settlement of a transaction involves a bilateral exchange of flows or assets between two counterparties. For example, when a counterparty buys dollars in exchange for euros, settlement involves one party delivering euros and receiving an equivalent amount of dollars from the other. Settlement risk is the risk that one of the parties fails to meet its settlement obligations. We have also developed a global infrastructure and specific models to measure this risk. To manage and control counterparty risk, it is essential to have an infrastructure that allows measuring current and potential exposure at different levels of aggregation and granularity in an agile and dynamic way, ensuring the generation of reports with sufficient detail to facilitate the understanding of exposures and the decision-making process. To measure exposure, Grupo Santander follows two methodologies: mark-to-market (MtM or replacement value in derivatives) plus potential future exposure (add-on), and Monte Carlo simulation for calculating exposure for some countries and products. Additionally, Santander calculates capital at risk or unexpected loss, which is the loss that constitutes economic capital net of guarantees and recoveries, after deducting the expected loss. After market close, Grupo Santander recalculates exposures by adjusting all operations to their new time horizon, adapting the potential future exposure and applying mitigation measures (netting, collateral, among others), so that exposures can be controlled daily against the limits approved by senior management within the risk appetite. Santander performs risk control through a real-time integrated system, which allows the Group to know at any moment the available exposure limit with any counterparty, in any product and term, and across all subsidiaries. Grupo Santander runs monthly stress tests on derivatives portfolios and securities financing transactions (SFT). These exercises form an integral part of the counterparty credit risk management process. They allow us to assess the resilience of exposures under adverse scenarios and support appropriate identification, measurement and control of the associated risks. 4.2. Concentration risk Concentration risk control is an essential aspect of Grupo Santander's management. The Group continuously monitors the level of concentration in its credit risk portfolios applying various criteria: geographic areas and countries, economic sectors and groups of customers. The board, via the risk appetite framework, determines the maximum levels of concentration. In line with these maximum levels and limits, the executive risk committee establishes the risk policies and reviews the appropriate exposure levels for the effective management of the degree of concentration in Santander’s credit risk portfolios. Grupo Santander must adhere to the regulation on large risks contained in the CRR, according to which the exposure contracted by an entity with a customer or group of associated customers will be considered a large exposure when its value is equal to or greater than 10% of eligible capital. In addition, in order to limit large exposures, no entity may assume exposures exceeding 25% of its eligible capital with a single customer or group of associated customers, having factored in the credit risk mitigation effect contained in the regulation. At the end of December, after applying risk mitigation techniques, no group reaches the above-mentioned thresholds. Regulatory credit exposure with the 20 largest groups within the scope of large risks represented 5.3% of the outstanding credit risk with customers (lending to customers plus off-balance sheet risks) as of December 2025. While the regulatory credit exposure with the 40 largest groups represents 8.4% of the credit risk. Annual report 2025851 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The detail, by activity and geographical area of the Group's risk concentration at 31 December 2025 is as follows: | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | EUR million | | | | | | | | 2025A | | | | | | | Total | Spain | Other EU countries | America | Rest of the world | | Central banks and Credit institutions | 326,316 | 61,256 | 71,853 | 119,532 | 73,675 | | Public sector | 267,765 | 82,131 | 62,620 | 109,109 | 13,905 | | Of which: | | | | | | | Central government | 239,153 | 66,479 | 57,468 | 101,768 | 13,438 | | Other central government | 28,612 | 15,652 | 5,152 | 7,341 | 467 | | Other financial institutions (financial business activity) | 207,044 | 16,301 | 50,819 | 101,600 | 38,324 | | Non-financial companies and individual entrepreneurs (non- financial business activity) (broken down by purpose) | 447,496 | 103,836 | 94,760 | 188,078 | 60,822 | | Of which: | | | | | | | Construction and property development | 20,322 | 4,130 | 2,090 | 9,396 | 4,706 | | Civil engineering construction | 5,128 | 1,835 | 1,740 | 1,468 | 85 | | Large companies | 291,515 | 53,841 | 63,635 | 127,003 | 47,036 | | SMEs and individual entrepreneurs | 130,531 | 44,030 | 27,295 | 50,211 | 8,995 | | Households – other (broken down by purpose) | 543,928 | 88,602 | 98,262 | 142,560 | 214,504 | | Of which: | | | | | | | Residential | 333,552 | 61,818 | 27,030 | 46,605 | 198,099 | | Consumer loans | 192,746 | 19,784 | 69,670 | 87,491 | 15,801 | | Other purposes | 17,630 | 7,000 | 1,562 | 8,464 | 604 | | Total | 1,792,549 | 352,126 | 378,314 | 660,879 | 401,230 | A. For the purposes of this table, the definition of risk includes the following items in the public balance sheet: 'Loans and advances to credit institutions', 'Loans and advances to Central Banks', 'Loans and advances to Customers', 'Debt securities', 'Equity Instruments', 'Trading Derivatives', 'Hedging derivatives', 'Investments and financial guarantees given'. 4.3 Sectors identification and management Grupo Santander conducts a quarterly review of exposure to customers operating in sectors that could be more affected by macroeconomic conditions (energy consumption, commodity prices, and key macroeconomic variables). This monitoring is complemented by the use of internal tools that allow projecting the behaviour and evolution of clients in each sector under different macroeconomic scenarios. Additionally, this process considers, among other things, the following information at the sector level: • Market information: Industries’ stock market performance. • Analysts’ EBITDA forecasts for the coming years. • Internal information: Changes in credit exposure, defaults (in different timelines) and stagings. • Our industry experts’ opinion, based on specific details about our exposures and our relationships with customers Grupo Santander continued to strengthen our ability to analyse potential losses at the highest possible level of granularity by enhancing the methodology and sector projection tools, based on the resilience of each company’s financial statements under different macroeconomic scenarios. 4.4. Sovereign risk and exposure to other public sector entities Sovereign risk arises from central bank transactions (including regulatory cash reserves), government bonds issued by the Treasury or equivalent bodies (public debt portfolio), and transactions with public-sector entities funded exclusively by a state’s budget revenues and with no commercial activity. The standard historically applied by Grupo Santander differs from the one used by the EBA in its periodic stress tests. The most significant differences are that the EBA’s approach does not include deposits with central banks, exposures held in insurance companies, or indirect exposures through guarantees or other instruments. By contrast, it does include public administrations more broadly (including regional and local authorities), and not only those of the central government. Santander continues to track and manage transactions with sovereign risk based on available information, such as reports by rating agencies and international organizations. Grupo Santander monitors each country where the Group has cross-border1 and sovereign risk. Santander analyses events that could affect the country’s political or institutional stability and assign its government or central bank a credit rating. This helps us set limits for transactions with sovereign risk. Annual report 2025852 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Over recent years, total sovereign risk exposure has remained in line with regulatory requirements and the strategy defined for managing this portfolio. Changes in exposure across countries reflect the liquidity management strategy and hedging of interest rate and foreign exchange risk. International exposure is diversified across countries with different macroeconomic expectations and, consequently, different growth, interest rate and exchange rate scenarios.. At the end of December 2025, Grupo Santander´s local sovereign exposure, in currencies other than the official currency of the country of issuance, is not significant (EUR 4,908 million, 1.2% of total sovereign risk) according to our management criteria. Furthermore, exposure to non-local sovereign issuers involving cross-border risk is even less significant2 (EUR 17,002 million, 4.0% of total sovereign risk). Sovereign exposure in Latin America is mostly in local currency, and is recognised in the local accounts and concentrated in short- term maturities. Our investment strategy for sovereign risk considers country’s credit quality to set the maximum exposure limits. The following table shows the percentage of exposure by ratingA: | | | | | | --- | --- | --- | --- | | | | | | | Exposure distribution by rating | | | | | | 2025 | 2024 | 2023 | | AAA | 18% | 21% | 18% | | AA | 17% | 18% | 19% | | A | 43% | 41% | 41% | | BBB | 14% | 11% | 12% | | Less than BBB | 9% | 9% | 10% | A. Internal ratings are applied. Sovereign exposure at the end of December 2025 is shown in the table below (data in million euros): | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | 2025 | | | | | | 2024 | | | Portfolio | | | | | | | | | Financial assets held for trading and Financial assets designated as FV with changes in results | Financial assets at fair value through other comprehensive income | Financial assets at amortised cost | Non-trading financial assets mandatory at fair value through profit or loss | Total net direct exposure | | Total net direct exposure | | Spain | 3,852 | 112 | 58,044 | — | 62,008 | | 56,293 | | Portugal | (659) | 1,199 | 6,767 | — | 7,307 | | 7,652 | | Italy | 2,875 | 440 | 12,557 | — | 15,872 | | 12,915 | | Greece | — | — | — | — | — | | — | | Ireland | (38) | — | — | — | (38) | | — | | Rest Eurozone | 3,684 | 254 | 10,443 | — | 14,381 | | 6,212 | | UK | 907 | 1,001 | 5,687 | — | 7,595 | | 8,772 | | Poland | 1,141 | 6,339 | 13,333 | — | 20,813 | | 14,286 | | Rest of Europe | 8 | — | 526 | — | 534 | | 954 | | US | 4,783 | 4,320 | 15,943 | — | 25,046 | | 24,926 | | Brazil | 8,089 | 9,533 | 8,543 | — | 26,165 | | 26,641 | | Mexico | 10,663 | 7,652 | 7,599 | — | 25,914 | | 21,642 | | Chile | 676 | 2,666 | 5,254 | — | 8,596 | | 6,900 | | Rest of America | 2,593 | 1,654 | 2,151 | — | 6,398 | | 4,431 | | Rest of the World | 211 | 17 | 4,128 | — | 4,356 | | 7,003 | | Total | 38,785 | 35,187 | 150,975 | — | 224,947 | | 198,627 | 1 Risks with domestic public or private borrowers in foreign currency and originated outside the country. 2 Countries that are not considered low risk by Banco de España. 5. Forborne loan portfolio The customer debt redirection policy incorporates the regulatory requirements of the EBA guidelines on the management of non- performing exposures, refinancing and restructuring. This policy acts as a reference for the transposition in our subsidiaries and shares the applicable supervisory expectations. This policy also sets down rigorous criteria for evaluating, classifying and monitoring forbearances to support the strictest possible care and diligence in recovering due amounts. Thus, it dictates that Santander must adapt payment obligations to customers' current circumstances. Our forbearance policy also defines classification criteria to support Grupo Santander recognizes risks appropriately. Forbearances must remain classified as non-performing or in watch-list for a prudential period for reasonable certainty of repayment. In no case will repayments be used to delay the immediate recognition of losses or so that their use distorts the timely recognition of the risk of non-payment. Annual report 2025853 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | At 31 December 2025, forbearance stock fell again and stood at EUR 25,235  million, due to the good payment behaviour in the main geographies. In terms of credit quality, 53% of the loans is classified as credit impaired, with a coverage ratio of 41% . In addition, 47% of the portfolio is classified as performing. The following terms are used with the meanings specified below: • Refinancing transaction: transaction that is granted or used, for reasons relating to current or foreseeable financial difficulties of the borrower, to repay one or more of the transactions granted to it, or through which the payments on such transactions are brought fully or partially up to date, in order to enable the borrowers of the cancelled or refinanced transactions to repay their debt (principal and interest) because they are unable, or might foreseeably become unable, to comply with the conditions there of in due time and form. • Restructured transaction: transaction with respect to which, for economic or legal reasons relating to current or foreseeable financial difficulties of the borrower, the financial terms and conditions are modified in order to facilitate the payment of the debt (principal and interest) because the borrower is unable, or might foreseeably become unable, to comply with the aforementioned terms and conditions in due time and form, even if such modification is envisaged in the agreement. | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Current refinancing and restructuring balances | | | | | | | | | Amounts in EUR million, except number of transactions that are in units | | | | | | | | | 2025 | | | | | | | | | | Total | | | | | | | | | Without real guarantee | | With real guarantee | | | | | | | | | | | Maximum amount of the actual collateral that can be considered | | Impairment of accumulated value or accumulated losses in fair value due to credit risk | | | Number of transactions | Gross amount | Number of transactions | Gross amount | Real estate guarantee | Rest of real guarantees | | Credit entities | — | — | — | — | — | — | — | | Public sector | 14 | 6 | 9 | 7 | 5 | — | 8 | | Other financial institutions and: individual shareholder | 933 | 94 | 462 | 182 | 117 | 15 | 94 | | Non-financial institutions and individual shareholder | 489,192 | 5,095 | 42,700 | 5,596 | 3,271 | 923 | 2,713 | | Of which financing for constructions and property development | 249 | 21 | 523 | 739 | 695 | 4 | 75 | | Other warehouses | 3,000,071 | 4,556 | 515,253 | 9,699 | 3,752 | 3,777 | 3,665 | | Total | 3,490,210 | 9,751 | 558,424 | 15,484 | 7,145 | 4,715 | 6,480 | | Financing classified as non-current assets and disposable groups of items that have been classified as held for sale | 13,499 | 261 | 4,630 | 566 | 406 | 14 | 171 | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Current refinancing and restructuring balances | | | | | | | | | Amounts in EUR million, except number of transactions that are in units | | | | | | | | | 2025 | | | | | | | | | Of which, non-performing/Doubtful | | | | | | | | | | Without real guarantee | | With real guarantee | | | | | | | | | | | Maximum amount of the actual collateral that can be considered | | Impairment of accumulated value or accumulated losses in fair value due to credit risk | | | Number of transactions | Gross amount | Number of transactions | Gross amount | Real estate guarantee | Rest of real guarantees | | Credit entities | — | — | — | — | — | — | — | | Public sector | 5 | 2 | 9 | 7 | 5 | — | 8 | | Other financial institutions and: individual shareholder | 579 | 50 | 259 | 75 | 22 | 11 | 89 | | Non-financial institutions and individual shareholder | 296,008 | 2,901 | 26,767 | 2,585 | 1,166 | 420 | 2,420 | | Of which financing for constructions and property development | 167 | 3 | 264 | 156 | 115 | 4 | 50 | | Other warehouses | 1,620,343 | 2,401 | 296,470 | 5,313 | 1,730 | 2,232 | 2,991 | | Total | 1,916,935 | 5,354 | 323,505 | 7,980 | 2,923 | 2,663 | 5,508 | | Financing classified as non-current assets and disposable groups of items that have been classified as held for sale | 6,901 | 120 | 1,720 | 235 | 110 | 5 | 145 | Annual report 2025854 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | In 2025, the amortised cost of financial assets whose contractual cash flows were modified during the year when the corresponding loss adjustment was valued at an amount equal to the expected credit losses over the life of the asset amounted to EUR 3,031 million (3,940 million in 2024), without these modifications having a material impact on the income statement. Also, during 2025, the total of financial assets that have been modified since the initial recognition, and whose correction for expected loss has gone from being valued during the entire life of the asset to the following twelve months, amounts to EUR 2,092 million (2,950 million in 2024). The transactions presented in the foregoing tables were classified at 31 December 2025 by nature, as follows: • Credit impaired: Operations that rest on an inadequate payment scheme will be classified within the non-performing category, regardless they include contract clauses that delay the repayment of the operation throughout regular payments or present amounts written off the balance sheet for being considered irrecoverable. • Performing: Operations not classifiable as non-performing will be classified within this category. Operations will also be classified as normal if they have been reclassified from the non- performing category for complying with the specific criteria detailed below: • A period of a year must have passed from the refinancing or restructuring date. • The owner must have paid for the accrued amounts of the capital and interests, thus reducing the rearranged capital amount, from the date when the restructuring of refinancing operation was formalised. • The owner must not have any other operation with amounts past due by more than 90 consecutive days of material delay on the date of the reclassification to the normal risk category. Attending to the credit attention 47% of the forborne loan transactions are classified as other than non-performing. Particularly noteworthy are the level of existing guarantees (47% of transactions are secured by collateral) and the coverage provided by specific allowances (representing 26% of the total forborne loan portfolio and 41% of the non-performing portfolio). c) Market, structural and liquidity risk 1. Activities subject to market risk and types of market risk Activities exposed to market risk encompass transactions where risk is assumed as a consequence of potential changes in interest rates, inflation rates, exchange rates, stock prices, credit spreads, commodity prices, volatility and other market factors; the liquidity risk from our products and markets, and the balance-sheet liquidity risk. Therefore, they include trading risks and structural risks. • Interest rate risk arises from movements in interest rates that reduce the value of a financial instrument, a portfolio or the Grupo Santander . It can affect loans, deposits, debt securities, most assets and liabilities held for trading, and derivatives. • Inflation rate risk arises from movements in inflation that can reduce the value of a financial instrument, a portfolio or the entire group. It can affect loans, debt securities and derivatives (e.g. inflation swaps and futures) whose profitability is linked to inflation. • Exchange rate risk is the possibility of loss because the currency of a long or open position will depreciate against the base currency. It can affect debt in subsidiaries whose local currency is not the euro, as well as loans denominated in a foreign currency. • Equity risk is the possibility of loss from open positions in securities if their market price or expected future dividends fall. It affects shares, stock market indices, convertible bonds and derivatives with shares as the underlying asset (put, call, equity swaps, etc.). • Credit spread risk is the possibility of loss from open positions in fixed-income securities or credit derivatives if their yield curve, or the recovery rate of their issuer or type change. A spread is the yield difference between financial instruments against a benchmark (e.g. the internal rate of return (IRR) of government bonds and interbank interest rates). • Commodity price risk is the possibility of loss from movements in commodity prices. Grupo Santander's commodity exposure is minor and stems mainly from commodity derivatives. • Volatility risk is the possibility of loss caused by movements in interest rates, exchange rates, the stock market, credit spreads and other risk factors affecting portfolio value. It is inherent to all financial instruments whose value considers volatility (especially options contracts). Derivative contracts (such as options, futures, forwards and swaps) can mitigate market risks partially or fully. Additionally, other more complex coverage market risks are considered, such as correlation risk, market liquidity risk, prepayment or cancellation risk and subscription risk. • Correlation risk is the possibility of loss due to an adverse correlation between risk variables that affect portfolio value. Risk variables could be the same (e.g. two FX rates) or different (e.g. an interest rate and a commodity price). • Market liquidity risk is the possibility that fewer market makers or institutional investors, a large number of transactions, market instability and other factors will cause the Group or a subsidiary to exit a position at a worse market price or trade cost. Exposure to different products and currencies can also increase this risk. • Pre-payment or cancellation risk originates when mortgages, deposits and other on-balance-sheet instruments give holders the option to buy or sell them, thus altering future cash flows. Potential mismatches on the balance sheet pose a risk since cash flows may have to be reinvested at an interest rate that is potentially lower (assets) or higher (liabilities). • Underwriting risk is the possibility that the bank will have to hold part of a debt issue it has underwritten or agreed to place if it cannot all be placed among potential buyers. Annual report 2025855 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Balance sheet liquidity risk (unlike market liquidity risk) is the possibility of loss caused by forced disposal of assets or cash flow imbalance if the bank meets its payment obligations late or at excessive cost. It can cause losses by forced asset sales or impacts on margins due to the mismatch between expected cash inflows and outflows. Pension and actuarial risks (explained at the end of this section) also depend on market variables. Grupo Santander aim to comply with the Basel Committee’s Fundamental Review of the Trading Book (FRTB) and the EBA’s Guidelines on the management of interest rate risk arising from non-trading book activities. The purpose of several projects Grupo Santander runs is to provide risk control managers and teams with the best market risk management tools under the right governance framework for the models Grupo Santander uses for metric reporting; and to comply with regulation on the risks mentioned above. 2 . Trading market risk management Setting market risk limits in a dynamic process according to the risk appetite in the annual limits plan prepared by senior management and extended to all subsidiaries. The standard methodology for risk management and control in trading, measures the maximum expected loss with a specific level of confidence and time frame. The standard for historical simulation is a confidence level of 99% over one day. Grupo Santander applies statistical adjustments efficiently to incorporate recent developments affecting our levels of risk. Our time frame is two years or at least 520 days from the reference date of the VaR calculation. The balance sheet items in the Group’s consolidated position that are subject to market risk are shown below, distinguishing those positions for which the main risk metric is VaR from those for which risk monitoring is carried out using other metrics: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Risk metric values on the consolidated balance sheet | | | | | | EUR million | | | | | | | | Main market risk metric | | | | | Balance sheet amount | VaR | Other | Main risk factor for 'Other' balance | | Assets subject to market risk | | | | | | Cash, cash balances at central banks and other deposits on demand | 152,281 | | 152,281 | Interest rate | | Financial assets held for trading | 252,318 | 252,318 | | | | Non-trading financial assets mandatorily at fair value through profit or loss | 7,761 | 5,815 | 1,946 | Interest rate, spread | | Financial assets designated at fair value through profit or loss | 8,046 | — | 8,046 | Interest rate, spread | | Financial assets designated at fair value through other comprehensive income | 74,612 | 2,281 | 72,331 | Interest rate, spread | | Financial assets at amortized cost | 1,202,689 | | 1,202,689 | Interest rate, spread | | Hedging derivatives | 3,931 | | 3,931 | Interest rate, exchange rate | | Changes in the fair value of hedged items in portfolio hedges of interest risk | 50 | | 50 | Interest rate | | Other assets | 165,827 | | | | | Total assets | 1,867,515 | | | | | | | | | | | Liabilities subject to market risk | | | | | | Financial liabilities held for trading | 171,546 | 171,546 | | | | Financial liabilities designated at fair value through profit or loss | 42,148 | — | 42,148 | Interest rate, spread | | Financial liabilities at amortized cost | 1,421,184 | | 1,421,184 | Interest rate, spread | | Hedging derivatives | 4,248 | | 4,248 | Interest rate, exchange rate | | Changes in the fair value of hedged items in portfolio hedges of interest rate risk | 49 | | 49 | Interest rate | | Other liabilities | 115,592 | | | | | Total liabilities | 1,754,767 | | | | | Equity | 112,748 | | | | Annual report 2025856 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The following table displays the latest and average VaR values at 99% by risk factor over the last three years. It also shows the minimum and maximum VaR values in 2025 and 97.5% ES at the end of December 2025: | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | VaR statistics and expected shortfall by risk factor A | | | | | | | | | | | | | EUR million. VaR at 99% and ES at 97.5% with one day time horizon | | | | | | | | | | | | | | 2025 | | | | | | 2024 | | | 2023 | | | | VaR ( 99%) | | | | ES (97.5%) | | VaR | | | VaR | | | | Min | Average | Max | Latest | Latest | | Average | Latest | | Average | Latest | | Total Trading | 9.6 | 17.6 | 29.2 | 18.7 | 16.9 | | 17.1 | 18.7 | | 11.7 | 13.5 | | Diversification effect | (10.7) | (21.0) | (59.3) | (17.7) | (18.9) | | (19.8) | (27.3) | | (14.9) | (17.1) | | Interest rate | 11.2 | 16.5 | 23.0 | 15.3 | 16.4 | | 17.0 | 20.2 | | 12.2 | 11.1 | | Equities | 2.4 | 6.5 | 10.8 | 8.1 | 7.5 | | 6.0 | 9.5 | | 3.2 | 6.0 | | Exchange rate | 3.3 | 7.4 | 37.5 | 6.3 | 5.8 | | 5.8 | 5.9 | | 5.3 | 4.8 | | Credit spread | 3.2 | 5.7 | 10.2 | 4.8 | 4.8 | | 4.9 | 5.3 | | 4.3 | 6.1 | | Commodities | 0.2 | 2.5 | 7.0 | 1.9 | 1.3 | | 3.2 | 5.1 | | 1.6 | 2.6 | | | | | | | | | | | | | | | Total Europe | 9.6 | 15.0 | 28.2 | 13.2 | 13.2 | | 12.7 | 16.0 | | 9.4 | 11.8 | | Diversification effect | (8.9) | (18.0) | (32.4) | (15.9) | (17.8) | | (15.4) | (18.4) | | (10.5) | (13.8) | | Interest rate | 9.0 | 13.3 | 19.2 | 11.4 | 13.3 | | 12.0 | 14.4 | | 9.1 | 8.2 | | Equities | 2.7 | 6.4 | 11.0 | 7.4 | 7.1 | | 5.9 | 8.8 | | 2.8 | 5.8 | | Exchange rate | 3.7 | 7.3 | 19.7 | 5.3 | 5.7 | | 5.1 | 5.8 | | 3.5 | 5.2 | | Credit spread | 3.0 | 5.8 | 10.4 | 4.9 | 4.8 | | 4.9 | 5.3 | | 4.3 | 6.1 | | Commodities | 0.1 | 0.2 | 0.3 | 0.1 | 0.1 | | 0.2 | 0.1 | | 0.2 | 0.3 | | | | | | | | | | | | | | | Total North America | 3.7 | 5.8 | 8.9 | 5.5 | 5.3 | | 6.9 | 6.4 | | 4.0 | 5.0 | | Diversification effect | (0.4) | (1.7) | (6.3) | (1.6) | (1.8) | | (1.1) | (0.8) | | (0.7) | (0.5) | | Interest rate | 3.8 | 5.9 | 8.8 | 4.8 | 4.9 | | 6.9 | 6.6 | | 3.7 | 5.0 | | Equities | 0.1 | 0.8 | 3.2 | 1.0 | 1.0 | | 0.2 | 0.1 | | 0.2 | 0.0 | | Exchange rate | 0.2 | 0.8 | 3.2 | 1.3 | 1.2 | | 0.9 | 0.5 | | 0.8 | 0.5 | | | | | | | | | | | | | | | Total South America | 3.2 | 7.6 | 16.5 | 5.8 | 5.9 | | 9.0 | 9.5 | | 7.3 | 7.0 | | Diversification effect | (0.3) | (5.2) | (28.7) | (8.7) | (6.2) | | (6.9) | (5.5) | | (6.2) | (6.6) | | Interest rate | 2.8 | 7.2 | 18.1 | 4.0 | 3.8 | | 8.8 | 6.5 | | 7.3 | 5.6 | | Equities | 0.2 | 1.5 | 7.2 | 2.2 | 2.3 | | 1.2 | 2.1 | | 1.4 | 2.4 | | Exchange rate | 0.4 | 1.6 | 12.9 | 6.5 | 4.7 | | 2.7 | 1.3 | | 3.2 | 3.0 | | Commodities | 0.1 | 2.5 | 7.0 | 1.8 | 1.3 | | 3.2 | 5.1 | | 1.6 | 2.6 | A. In South and North America, VaR levels of credit spreads and commodities are not shown separately due to their low or null materiality. VaR at the end of December (EU R 18.7 million ) was only EUR 0.03 million lower compared to the end of 2024, reflecting sustained high market volatility, ongoing geopolitical risk and concerns over inflation trends, which could pick up again as a result of new US trade policies. By risk factor, average VaR (EUR 17.6 million ) higher across several risk factors, especially for foreign exchange, with high market volatility for certain currencies such as the US dollar and the Argentine peso. Temporary spikes in VaR across the different factors generally reflect isolated increases in market price volatility rather than significant changes in positions. By region, average VaR was higher than the 2024 average in Europe, mainly due to interest rate and foreign exchange risk factors, while it was lower in North America and South America. Backtesting Actual losses can differ from predicted losses because of the VaR’s limitations. Grupo Santander measures the accuracy of the VaR calculation model to make sure it is reliable. The most important tests Grupo Santander runs involve backtesting: • In hypothetical P&L backtesting and for the total portfolio, two exceptions (a daily loss higher than VaR or a daily gain higher than VaE) were observed in 2025 for VaR at a 99% confidence level, on 9 and 11 April, as a result of high market volatility, mainly driven by uncertainty over the potential impact of new US trade policies. • The exceptions observed in the past year are consistent with the assumptions of the VaR calculation model. Annual report 2025857 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 3. Structural balance sheet risks 3.1. Main aggregates and variations Consistent with previous years, the market risk profile of Grupo Santander’s balance sheet remained moderate in 2025 in terms of asset, shareholders’ equity and NII volumes. Each subsidiary’s finance division manages interest rate risk from commercial banking and is responsible for handling structural risk from interest rate fluctuations. To measure interest rate risk, Grupo Santander uses statistical models based on strategies to mitigate structural risk with interest-rate instruments (such as bonds and derivatives) to keep risk profile within risk appetite. The NII and EVE sensitivities below are based on scenarios of parallel interest rate movements from -100 to +100 basis points. Structural VaR With such a homogeneous metric as VaR, Grupo Santander can fully monitor market risk in the banking book (excluding CIB trading activity). The Bank differentiates fixed income based on interest rates and credit spreads in ALCO portfolios, FX rates and shares. In general, the structural VaR of Grupo Santander total assets and equity is minor. | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Structural VaR | | | | | | | | | | EUR million. Structural VaR 99% with a temporary horizon of one day . | | | | | | | | | | | 2025 | | | | 2024 | | 2023 | | | | Min | Average | Max | Latest | Average | Latest | Average | Latest | | Structural VaR | 598.5 | 662.9 | 751.9 | 690.1 | 747.7 | 687.5 | 705.0 | 749.5 | | Diversification effect | (155.9) | (258.4) | (265.6) | (206.6) | (386.4) | (268.6) | (416.6) | (444.7) | | VaR Interest RateA | 158.3 | 177.3 | 205.8 | 177.6 | 412.0 | 235.2 | 348.4 | 380.2 | | VaR Exchange Rate | 486.0 | 597.7 | 648.7 | 572.4 | 571.7 | 594.4 | 580.4 | 642.9 | | VaR Equities | 110.1 | 146.3 | 163.0 | 146.7 | 150.4 | 126.5 | 192.8 | 171.1 | A. Includes credit spread VaR on ALCO portfolios. Structural interest rate risk • Europe At the end of December, net interest income (NII) for our main balance sheets showed positive sensitivity to interest rate increases. As of the same date, the economic value of equity (EVE) showed negative sensitivity to interest rate increases. At the end of December 2025, under the scenarios previously described, the most significant NII sensitivity risk was concentrated in the euro, at EUR 561 million; the pound sterling, EUR 169 million; the Polish złotyr, EUR 51 million; and the US dollar, EUR 50 million , all linked to interest rate cut risk. The most significant risk to the economic value of equity was concentrated in the euro yield curve, at EUR 1,087 million; in pound sterling, at EUR 614 million; the Polish złoty, at EUR 275 million euros; and the US dollar, at EUR 104 million euros, all linked to interest rate rise risk. Exposure was moderate in relation to annual budget and capital levels in 2025. • North America At the end of December, net interest income (NII) for our North America balance sheets showed positive sensitivity to interest rate increases in the United States, while showing negative sensitivity to the same scenario in Mexico. In both cases, the economic value of equity (EVE) showed negative sensitivity to interest rate increases. Exposure was moderate in relation to annual budget and capital levels in 2025. At the end of December 2025, significant risk to NII was mainly in the US and amounted to EUR 49 million. The most significant risk to EVE was in the US and amounted to EUR 570 million. • South America EVE and NII on our main South American balance sheets are generally positioned for interest rate cuts. Annual report 2025858 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | In 2025, exposure across all countries remained moderate in relation to the annual budget and capital levels. At the end of December, the most significant risk to NII was mainly in Brazil (EUR 57 million). Most significant risk to EVE was recorded in Brazil (EUR 257 million) and in Chile (EUR 225 million). Structural foreign currency rate risk/results hedging Grupo Santander's structural FX risk stems mainly from the income and hedging of foreign currency transactions for permanent financial investments. In the dynamic management of this risk, Grupo Santander aims to limit the impact of FX rate movements on the core capital ratio. In 2025, the hedged of the different currencies that have an impact on our core capital ratio was close to 100% . In December 2025, the largest permanent exposures (with their potential impact on equity) were, in this order, in pound sterling, US dollars, Brazilian reais, Mexican pesos, Polish zlotys and Chilean pesos. Grupo Santander uses FX derivatives to hedge part of those permanent positions. The Finance division manages FX risk and hedging for the expected profits and dividends of subsidiaries whose base currency is not the euro. Structural equity risk Grupo Santander holds equity positions in its banking and trading books. They are either equity instruments or stock, depending on the share of ownership or control. At the end of December 2025, the equities and shareholdings in the banking book were diversified among Spain, China, Morocco, Poland and other countries. Most of them invest in the financial and insurance sectors. Grupo Santander has minor equity exposure to property and other sectors. Structural equity positions are exposed to market risk. The Group calculates its VaR with a set of market prices and proxies. At the end of the year 2025, VaR at a 99% confidence level over a one-day horizon was EUR 147 million (EUR 127 million and EUR 171 million in 2024 and 2023, respectively). 3.2. Methodologies Structural interest rate risk Grupo Santander measures the potential impact of interest rate movements on EVE and NII. Because changing rates may generate impacts, Grupo Santander must manage and control many subtypes of interest rate risk, such as repricing risk, curve risk, basis risk and option risk (e.g. behavioural or automatic). Interest rate risk in the balance sheet and market conditions and outlooks could necessitate certain financial measures to achieve Grupo Santander's desired risk profile (such as selling positions or setting interest rates on products Grupo Santander markets). The metrics Grupo Santander uses to monitor IRRBB include NII and EVE sensitivity to interest rate movements. • Net interest income sensitivity Net interest income (NII) is the difference between interest income from assets and the interest cost of liabilities in the banking book over a typical one- to three-year horizon (one year being standard in Grupo Santander). Because NII sensitivity is the difference in income between a selected scenario and the base scenario, its values can be as many as considered scenarios. It enables us to see short-term risks and supplement economic value of equity (EVE) sensitivity. • Economic value of equity sensitivity Economic value of equity (EVE) is the difference between the current value of all assets minus the current value of all liabilities in the banking book. It does not include shareholders’ equity and non-interest-bearing instruments. The sensitivity of the economic value of own funds is obtained as the difference between said economic value calculated with a selected scenario and that calculated with a base scenario. Because EVE sensitivity is the difference in EVE between a selected scenario and the base scenario, it can have as many values as considered scenarios. It enables us to see long-term risks and supplement NII sensitivity. Structural exchange-rate risk/hedging of results Every day, Grupo Santander measures FX positions, VaR and P/L. Structural equity risk Grupo Santander measures equity positions, VaR and P/L. 4. #### Liquidity risk Structural liquidity management aims to fund the Group’s recurring activity optimising maturities and costs, while avoiding taking on undesired liquidity risks. Santander’s liquidity management is based on the following principles: • Define liquidity risk and provide detailed assessments of current and emerging material liquidity risks. • Define liquidity risk metrics, review and challenge liquidity risk appetite and limits on first line of defence proposals. • Evaluates and challenges commercial/business proposals; It provides senior management and business units with the necessary elements to understand the liquidity risk of Santander's businesses and operations. • Supervise the liquidity risk management of the first line of defence and assess the permanence of businesses within the limits of liquidity risk. • Reports on compliance with risk appetite limits and exceptions, if any, to governing bodies. • Provides a consolidated view of liquidity risk exposures and liquidity risk profile. • Confirms the existence of adequate liquidity procedures to manage the business within the limits of risk appetite. Annual report 2025859 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The effective application of these principles by all institutions comprising the Group required the development of a unique management framework built upon three fundamental pillars: • A solid organisational and governance model that supports the involvement of the subsidiaries’ senior management in decision- taking and its integration into the Group’s global strategy. The decision-making process for all structural risks, including liquidity and funding risk, is carried out by local Asset and Liability Committees (ALCOs) in coordination with the global ALCO, which is the body empowered by the Bank's board in accordance with the corporate Asset and Liability Management (ALM) framework. This governance model has been reinforced as it has been included within Santander's Risk Appetite Framework. This framework meets demands from regulators and market players emanating from the financial crisis to strengthen banks’ risk management and control systems. • In-depth balance sheet analysis and measurement of liquidity risk, supporting decision-taking and its control. The Group objective is to maintains adequate liquidity levels necessary to cover its short- and long-term needs with stable funding sources, optimising the impact of their costs on the income statement. Grupo Santander’s liquidity risk management processes are contained within a conservative risk appetite framework established in each geographic area in accordance with its commercial strategy. This risk appetite establishes the limits within which the subsidiaries can operate in order to achieve their strategic objectives. • Management adapted in practice to the liquidity needs of each business. Every year, based on business needs, a liquidity plan is developed which seeks to achieve: • a solid balance sheet structure, with a diversified presence in the wholesale markets; • the use of liquidity buffers and limited encumbrance of assets; • compliance with both regulatory metrics and other metrics included in each entity’s risk appetite statement. Over the course of the year, all dimensions of the plan are monitored. Grupo Santander continues to develop the ILAAP (Internal Liquidity Adequacy Assessment Process), an internal self-assessment of liquidity adequacy which must be integrated into the Group’s other risk management and strategic processes. It focuses on both quantitative and qualitative matters and is used as an input to the SREP (Supervisory Review and Evaluation Process). The ILAAP evaluates the liquidity position both in ordinary and stressed scenarios. i. Liquidity risk measurement Grupo Santander uses the Basel regulatory definition and calculates a set of metrics and stress scenarios in relation to intraday liquidity risk to maintain a high level of management and control. On the one hand, the regulatory liquidity metrics (LCR, NSFR) are prepared following the regulatory criteria established in the CRR 2 and CRD IV. Regarding internal metrics, liquidity scenarios are determined using a combination of behavioral observation in actual liquidity crises occurred at other banks, regulatory assumptions and expert judgment. a) Liquidity Coverage Ratio (LCR) The liquidity coverage ratio (LCR) is a regulatory metric. Its purpose is to promote the short-term resilience of a bank’s liquidity profile and make sure it has enough high-quality liquid assets to withstand a considerable idiosyncratic or market stress scenario over 30 calendar days. b) Net Stable Funding Ratio (NSFR) The net stable funding ratio (NSFR) is a regulatory metric we use to measure long-term liquidity risk. It is the ratio of available stable funding to required stable funding. It requires banks to keep a robust balance sheet, with off-balance-sheet assets and operations financed by stable liabilities. c) Liquidity buffer The liquidity buffer is the total liquid assets a bank has to cope with cash outflows during periods of stress. The assets are free of encumbrances and can be used immediately to generate liquidity without losses or excessive discounts. The liquidity buffer is a tool for calculating most liquidity metrics. It is also a metric with defined limits for each subsidiary. d) Wholesale liquidity metric The wholesale liquidity metric measures the number of days Grupo Santander would survive if it used liquid assets to cover lost liquidity from a wholesale deposit run-off (without possible renewal) over a set time horizon. Grupo Santander also uses it as an internal short-term liquidity metric to reduce risk from dependence on wholesale funding. e) Asset Encumbrance metrics Grupo Santander calculates two metrics to measure asset encumbrance risk. On the one hand, the asset encumbrance ratio gives the proportion of encumbered assets to total assets; on the other, the structural asset encumbrance ratio gives the proportion of encumbered assets by structural funding transaction (namely long-term collateralized issues and credit transactions with central banks). f) Other additional liquidity indicators In addition to traditional tools to measure short and long-term liquidity and funding risk, Grupo Santander has a set of additional liquidity indicators to complement those and to measure other non-covered liquidity risk factors. These include concentration metrics, such as the main and the five largest funding counterparties, or the distribution of funding by maturity. In this sense, deposits do not show a tendency towards concentration, maintaining a stable structure at 31 December 2024, where approximately 75% are transactional and more than 80% of retail deposits are insured by deposit guarantee systems of the different countries. Annual report 2025860 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | g) Liquidity scenario analysis As liquidity stress tests, five standard scenarios have been defined: i. An idiosyncratic scenario of events detrimental only to Santander; ii. a local market scenario of events highly detrimental to a base country’s financial system or real economy; iii. a global market scenario of events highly detrimental to the global financial system; and iv. combined scenario consisting of a combination of more severe idiosyncratic and market events (local and global) occurring simultaneously and interactively. v. climate scenarios where different stress cases derived from the effects that climate change could have on the economy are collected. Grupo Santander uses these stress test outcomes as tools to determine risk appetite and support business decision-making. h) Liquidity early warning indicators Early warning indicator system consists of quantitative and qualitative liquidity indicators that help predict stress situations and weaknesses in the funding and liquidity structure of Grupo Santander entities. External indicators relate to market-based financial variables; internal indicators relate to our own performance. i) Intraday liquidity metrics Grupo Santander follows Basel regulation and calculates several metrics and stress scenarios for intraday liquidity risk to maintain a high level of control. ii. Liquidity coverage ratio and net stable financing ratio The regulatory requirement for the LCR ratio has been set at 100% since 2018. Below is a breakdown of the Group's liquid assets composition according to the criteria established in the supervisory prudential information (Commission Implementing Regulation (EU) 2017/2114 of 9 November 2017) for the determination of high- quality liquid assets for the calculation of the LCR ratio (HQLA): | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | | Amount weighted applicable | Amount weighted applicable | Amount weighted applicable | | High-quality liquid assets-HQLAs | | | | | Cash and reserves available at central banks | 150,883 | 188,745 | 217,935 | | Marketable assets Level 1 | 173,744 | 150,912 | 119,043 | | Marketable assets Level 2A | 5,726 | 4,696 | 4,236 | | Marketable assets Level 2B | 7,584 | 6,951 | 6,814 | | Total high-quality liquid assets | 337,937 | 351,304 | 348,028 | | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | High-quality liquid assets-HQLAs (numerator) | 301,618 | 315,524 | 348,028 | | Total net cash outflows (denominator) | 208,388 | 206,889 | 209,892 | | Cash outflows | 287,044 | 278,760 | 282,982 | | Cash inflows | 78,656 | 71,871 | 73,090 | | Consolidated LCR ratio (%) | 145% | 153% | 166% | | Group LCR ratio (%) | 155% | 168% | | | NSFR ratio (%) | 126% | 126% | 123% | Since 2024, the calculation of the consolidated LCR ratio has been updated to comply with a series of requirements regarding asset transferability restrictions in third countries. This new consolidated ratio includes an adjustment whereby any excess liquidity above 100% of LCR outflows, which is subject to transferability restrictions (legal or operational) in third countries, is not taken into account. This applies even if the surplus liquidity can be used to cover additional outflows within the country itself, which is not subject to any restrictions. The total high-quality liquid assets differ from the high-quality liquid assets (HQLAs) considered as the numerator within the consolidated LCR ratio, due to the aforementioned adjustment. In addition, since 2024, we have been calculating a Group LCR ratio using an internal methodology that determines the minimum common coverage percentage simultaneously across all the Group's markets and considers all existing restrictions on liquidity transfers in third countries. This methodology reflects the Group's resilience to liquidity risk more accurately and the internal ratio presents a level that is consistent with what would be achieved by applying the criteria followed until mid-2024, which did not include restrictions on liquidity transfers between subsidiaries. Regarding the net stable funding ratio (NSFR), its definition was approved by the Basel Committee in October 2014. The transposition of this requirement into European regulation took place in June 2019 with the publication in the Official Journal of the European Union of Regulation (EU) 2019/876 of the European Parliament and of the Council of 20 May 2019. The Regulation establishes that entities must have a net stable funding ratio, as defined in the Regulation, above 100% from June 2021. As for the funding structure, given the inherently commercial nature of the Group's balance sheet, the loan portfolio is mainly financed by customer deposits. In note 22, 'Debt securities,' the composition of these liabilities is presented based on their nature and classification, the movements and maturity profile of the debt securities issued by the Group, reflecting the strategy of diversification by products, markets, issuers, and terms followed by the Group in its approach to wholesale markets. iii. Asset encumbrance Finally, the moderate use of assets by Grupo Santander as collateral in the sources of structural financing of the balance sheet should be highlighted. Annual report 2025861 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | In accordance with the guidelines established by the European Banking Authority (EBA) in 2014 on committed and uncommitted assets, the concept of assets committed in financing transactions (asset encumbrance) includes both on-balance sheet assets provided as collateral in transactions to obtain liquidity and off- balance sheet assets that have been received and reused for similar purposes, as well as other assets associated with liabilities for reasons other than financing. The residual maturities of the liabilities associated with the assets and guarantees received and committed are presented below, as of 31 of December of 2025 (EUR billion): | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Residual maturities of the liabilities | Unmatured | <=1month | >1 month <=3 months | >3 months <=12 months | >1 year <=2 years | >2 years <=3 years | 3 years <=5 years | 5 years <=10 years | >10 years | Total | | Committed assets | 24.2 | 50.7 | 14.1 | 38.4 | 38.8 | 29.5 | 37.7 | 36.3 | 36.6 | 306.4 | | Guarantees received committed | 2.2 | 85.2 | 28.2 | 61.8 | 4.0 | 0.8 | 1.9 | 1.1 | — | 185.2 | The reported Group information as required by the EBA at 2025 year-end is as follows: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | On-balance-sheet encumbered assets | | | | | | EUR billion | | | | | | | Carrying amount of encumbered assets | Fair value of encumbered assets | Carrying amount of unencumbered assets | Fair value of unencumbered assets | | Loans and advances | 152.5 | | 1,149.4 | | | Equity instruments | 11.4 | 11.4 | 18.7 | — | | Debt securities | 117.9 | 118.5 | 182.2 | 180.7 | | Other assets | 23.1 | | 212.4 | | | Total assets | 304.9 | | 1,562.7 | | | | | | | --- | --- | --- | | | | | | Encumbrance of collateral received | | | | EUR billion | | | | | Fair value of encumbered collateral received or own debt securities issued | Fair value of collateral received or own debt securities issued available for encumbrance | | Collateral received | 185.2 | 70.3 | | Loans and advances | 0.5 | — | | Equity instruments | 12.2 | 7.1 | | Debt securities | 172.5 | 63.1 | | Other collateral received | — | 0.1 | | Own debt securities issued other than own covered bonds or ABSs | 1.4 | 1.1 | | | | | | --- | --- | --- | | | | | | Encumbered assets and collateral received and matching liabilities | | | | EUR billion | | | | | Matching liabilities, contingent liabilities or securities lent | Assets, collateral received and own debt securities issued other than covered bonds and ABSs encumbered | | Total sources of encumbrance (carrying amount) | 472.0 | 491.5 | On-balance-sheet encumbered assets amounted to EUR 304,923 million, of which close to 50% are loans (mortgage loans, corporate loans, etc.). Guarantees received committed amounted to EUR 185,160 million, relating mostly to debt securities received as security in asset purchase transactions and re-used. Taken together, these two categories represent a total of EUR 491,519 million of encumbered assets, which give rise to EUR 472,045 million matching liabilities. As of December 2025, total asset encumbrance in funding operations represented 23.1% of the Group’s extended balance sheet under EBA criteria (total assets plus guarantees received: EUR 2,122,932 million), similar to December 2024. #### d) Capital risk The second line of defence can independently challenge business and first-line activities by: • Supervising capital planning and adequacy exercises through a review of the main components affecting the capital ratios. • Identifying key metrics to calculate the Group’s regulatory capital, setting tolerance levels and analysing significant variations, as well as single transactions with impact on capital. Annual report 2025862 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | • Reviewing and challenging the execution of capital actions proposed in line with capital planning and risk appetite. Grupo Santander commands a sound solvency position, above the levels required by regulators and by the European Central bank. #### Regulatory capital At 31 December 2025, at a consolidated level, the Group must main tain a minimum capital ratio of 9.84% of CET1 ( 4.50% being the requirement for Pillar I, 0.98% being the requirement for Pillar 2R (requirement), 2.50% being the requirement for capital conservation buffer, 1.25% being the requirement for global systemically entity (D-SIB), 0.55% being the requirement for anti- cyclical capital buffer) and a systemic risk requirement of 0.05% Grupo Santander must also maintain a minimum capital ratio of 11.66% of tier 1 and a minimum total ratio of 14.10%. In 2025, the solvency target set was achieved. Santander’s CET1 ratio stood at 13.46% 1 at the close of the year, demonstrating its organic capacity to generate capital. The key regulatory capital figures are indicated below: | | | | | | --- | --- | --- | --- | | | | | | | Reconciliation of accounting capital with regulatory capital | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Subscribed capital | 7,345 | 7,576 | 8,092 | | Share premium account | 36,792 | 40,079 | 44,373 | | Reserves | 84,700 | 76,568 | 69,278 | | Treasury shares | (96) | (68) | (1,078) | | Attributable profit | 14,101 | 12,574 | 11,076 | | Approved dividendC | (1,698) | (1,532) | (1,298) | | Shareholders’ equity on public balance sheet | 141,144 | 135,197 | 130,443 | | Valuation adjustments | (37,973) | (36,596) | (35,020) | | Non-controlling interests | 9,578 | 8,726 | 8,818 | | Total Equity on public balance sheet | 112,748 | 107,327 | 104,241 | | Goodwill and intangible assets | (15,037) | (16,098) | (17,313) | | Eligible preference shares and participating securities | 9,645 | 10,371 | 9,002 | | Accrued dividendC | (1,827) | (1,611) | (1,471) | | Other adjustmentsA | (11,146) | (9,817) | (8,717) | | Tier 1B | 94,383 | 90,172 | 85,742 | A. Fundamentally for non-computable non-controlling interests and deductions and reasonable filters in compliance with CRR. B. Figures calculated by applying the transitional provisions of CRR 3 . C. Assumes 25% of underlying profit, see note 4.a for proposed distribution of results. Note: Certain figures presented in this capital note have been rounded for ease of presentation. Consequently, the amounts corresponding to the rows or columns of totals in the tables presented in this note may not coincide with the arithmetic sum of the concepts or items that make up the total. 1 Data calculated applying the transitional provisions of CRR 3. The following table shows the capital coefficients and a detail of the eligible internal resources of the Group: | | | | | | --- | --- | --- | --- | | | | | | | Capital coefficients | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Level 1 ordinary eligible capital (EUR million) | 84,739 | 79,800 | 76,741 | | Level 1 additional eligible capital (EUR million) | 9,645 | 10,371 | 9,002 | | Level 2 eligible capital (EUR million) | 17,460 | 18,418 | 16,497 | | Risk-weighted assets (EUR million) | 629,430 | 624,503 | 623,731 | | Level 1 ordinary capital coefficient (CET 1) | 13.46% | 12.78% | 12.30% | | Level 1 additional capital coefficient (AT1) | 1.53% | 1.66% | 1.45% | | Level 1 capital coefficient (TIER1) | 15.00% | 14.44% | 13.75% | | Level 2 capital coefficient (TIER 2) | 2.77% | 2.95% | 2.64% | | Total capital coefficient | 17.77% | 17.39% | 16.39% | | | | | | | --- | --- | --- | --- | | | | | | | Eligible capital | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Eligible capital | | | | | Common Equity Tier I | 84,739 | 79,800 | 76,741 | | Capital | 7,345 | 7,576 | 8,092 | | (-) Treasure shares and own shares financed | (1,892) | (1,694) | (2,847) | | Share Premium | 36,792 | 40,079 | 44,373 | | Reserves | 84,663 | 76,608 | 68,721 | | Other retained earnings | (39,918) | (38,617) | (35,038) | | Minority interests | 9,037 | 8,479 | 6,899 | | Profit net of dividends | 10,576 | 9,431 | 8,307 | | Deductions | (21,863) | (22,061) | (21,766) | | Goodwill and intangible assets | (15,037) | (15,957) | (17,220) | | Others | (6,826) | (6,104) | (4,546) | | Additional Tier I | 9,645 | 10,371 | 9,002 | | Eligible instruments AT1 | 8,937 | 9,725 | 8,461 | | AT1-excesses-subsidiaries | 708 | 645 | 541 | | Tier II | 17,460 | 18,418 | 16,497 | | Eligible instruments T2 | 17,754 | 18,869 | 17,101 | | Excess IRB provision on PE | — | — | 76 | | T2-excesses - subsidiaries | (294) | (450) | (680) | | Total eligible capital | 111,845 | 108,589 | 102,240 | Note: Banco Santander, S.A. and its affiliates had not taken part in any State aid programmes. Annual report 2025863 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### Leverage ratio Basel III established the leverage ratio as a non-risk sensitive measure aimed at limiting excessive balance sheet growth relative to available capital. The Group performs the calculation in accordance with Regulation (EU) 2019/876 of 20 May 2019 amending Regulation (EU) No 575/2013 as regards the leverage ratio. This ratio is calculated as tier 1 capital divided by leverage exposure. Exposure is calculated as the sum of the following items: • Accounting assets, excluding derivatives and items treated as deductions from tier 1 capital (for example, the balance of loans is included, but not that of goodwill) further excluding the exposures referred to in Article 429.a (1) of the regulation. • Off-balance-sheet items (mainly guarantees, unused credit limits granted and documentary credits) weighted using credit conversion factors. • Inclusion of net value of derivatives (gains and losses are netted with the same counterparty, minus collaterals if they comply with certain criteria) plus a charge for the future potential exposure. • A charge for the potential risk of security funding transactions. • Lastly, it includes a charge for the risk of credit derivative swaps (CDS). With the publication of Regulation (EU) 2019/876 of 20 May, 2019, amending Regulation (EU) n.º 575/2013 as regards the leverage ratio, the final calibration of the ratio is set at 3% for all entities and, for systemic entities G-SIB, is established an additional surcharge which would be 50% of the cushion ratio applicable to the EISM, applicable from January 2023. In addition, modifications are included in its calculation, including the exclusion of certain exposures from the total exposure measure: public loans when exceptional circumstances arise, public loans, transfer loans and officially guaranteed export credits, transfer loans and officially guaranteed export credits. | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | 2024 | 2023 | | Leverage | | | | | Level 1 Capital | 94,385 | 90,170 | 85,742 | | Exposure | 1,924,349 | 1,885,572 | 1,826,922 | | Leverage Ratio | 4.90% | 4.78% | 4.69% | #### Global systemically important banks Grupo Santander is one of 29 banks designated as global systemically important banks (G-SIBs). The designation as a globally systemic entity comes from a measurement established by the regulators (FSB and BCBS) that they have implemented based on five indicators (size, interjurisdictional activity, interconnection with other financial entities, substitutability and complexity). The list uses data as of the end of 2024 and is based on a methodology agreed in July 2018 and implemented for the first time in the assessment of G- SIBs as of the end of 2021, incorporating, among other things, an additional score considering the Member States of the SRM as a single jurisdiction. This definition means it has to fulfil certain additional requirements, which consist mainly of a capital buffer (1%), in TLAC requirements (total loss absorbing capacity), that Grupo Santander has to publish relevant information more frequently than other banks, greater regulatory requirements for internal control bodies, special supervision and drawing up of special reports to be submitted to supervisors. Additionally, Grupo Santander appears both on the list of global systemic entities and on the list of domestic systemic entities. Bank of Spain, based on rule 23 of Circular 2/2016, requires the application of the highest of the two corresponding buffers, in the case of Grupo Santander being the domestic one, 1.25%, a surcharge payable by 2025. The fact that Grupo Santander has to comply with these requirements makes it a more solid bank than its domestic rivals. 55. #### Explanation added for translation #### to English These accompanying Consolidated Financial Statements, translation of the Consolidated Financial Statements originally issued in Spanish, are presented on the basis of the regulatory financial reporting framework applicable to the Group in Spain (see note 1.b). Annual report 2025864 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | ![11.Anexos_ENG.jpg]() Appendix Annual report 2025865 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### Appendix I | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + Reserves | Net results | Carrying amount | | 2 & 3 Triton Limited (j) | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Real estate | 0 | 0 | 0 | | A & L CF (Guernsey) Limited (j) (n) | Guernsey | 0.00% | 100.00% | | 100.00% | 100.00% | Leasing | 1 | 0 | 0 | | Abbey Covered Bonds (Holdings) Limited | United Kingdom | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Abbey Covered Bonds (LM) Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Securitization | 0 | 0 | 0 | | Abbey Covered Bonds LLP | United Kingdom | — | (b) | | — | — | Securitization | 1,807 | (589) | 0 | | Abbey National Business Office Equipment Leasing Limited (j) | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Abbey National Nominees Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Abbey National PLP (UK) Limited (j) | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Abbey National Property Investments | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 240 | 8 | 158 | | Abbey Stockbrokers (Nominees) Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Abbey Stockbrokers Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Abent 3T, S.A.P.I de C.V. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Electricity production | (127) | (22) | 0 | | Ablasa Participaciones, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 811 | 208 | 894 | | Aduro S.A. | Uruguay | 0.00% | 100.00% | | 100.00% | 100.00% | Payments and collection services | 1 | 0 | 1 | | Aevis Europa, S.L. | Spain | 96.34% | 0.00% | | 96.34% | 96.34% | Cards | 2 | 0 | 1 | | AFB SAM Holdings, S.L. | Spain | 1.00% | 99.00% | | 100.00% | 100.00% | Holding company | 1 | 0 | 0 | | Afisa S.A. | Chile | 0.00% | 100.00% | | 100.00% | 100.00% | Fund management company | 4 | 0 | 4 | | Agro Flex Fundo de Investimento em Direitos Creditórios | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investment fund | 419 | 54 | 425 | | Allane Leasing GmbH | Austria | 0.00% | 46.95% | | 100.00% | 100.00% | Renting | (2) | 0 | 0 | | Allane Location Longue Durée S.a.r.l. | France | 0.00% | 46.95% | | 100.00% | 100.00% | Renting | 25 | 4 | 0 | | Allane Mobility Consulting AG | Switzerland | 0.00% | 46.95% | | 100.00% | 100.00% | Consulting services | 0 | 0 | 0 | | Allane Mobility Consulting B.V. | Netherlands | 0.00% | 46.95% | | 100.00% | 100.00% | Consulting services | (3) | 0 | 0 | | Allane Mobility Consulting GmbH | Germany | 0.00% | 46.95% | | 100.00% | 100.00% | Consulting services | 11 | 10 | 5 | | Allane Mobility Consulting Österreich GmbH | Austria | 0.00% | 46.95% | | 100.00% | 100.00% | Consulting services | (1) | 0 | 0 | | Allane Mobility Consulting S.a.r.l | France | 0.00% | 46.95% | | 100.00% | 100.00% | Consulting services | (2) | 0 | 0 | | Allane Schweiz AG | Switzerland | 0.00% | 46.95% | | 100.00% | 100.00% | Renting | 10 | (6) | 2 | | Allane SE | Germany | 0.00% | 46.95% | | 92.07% | 92.07% | Renting | 172 | 24 | 150 | | Allane Services GmbH & co. KG | Germany | 0.00% | 46.95% | | 100.00% | 100.00% | Services | 2 | 0 | 0 | | Allane Services Verwaltungs GmbH | Germany | 0.00% | 46.95% | | 100.00% | 100.00% | Management of portfolios | 0 | 0 | 0 | | Alliance & Leicester Investments (No.2) Limited (j) | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Alliance & Leicester Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Alliance & Leicester Personal Finance Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 2 | 0 | 2 | | Altamira Santander Real Estate, S.A. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Real estate | 138 | (4) | 164 | Annual report 2025866 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + Reserves | Net results | Carrying amount | | Alternative Leasing, FIL (Compartimento B) | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Investment fund | 88 | 6 | 74 | | Amazonia Trade Limited | United Kingdom | 100.00% | 0.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | América Gestão Serviços em Energía S.A. | Brazil | 0.00% | 62.90% | | 70.00% | 70.00% | Electricity production | 2 | (1) | 1 | | Amherst Pierpont Commercial Mortgage Securities LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Securitization | 0 | 0 | 0 | | Amherst Pierpont International Ltd. | Hong-Kong | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | AMS Auto Markt Am Schieferstein GmbH (d) | Germany | 0.00% | 90.01% | | 100.00% | 100.00% | Vehicle sales | 0 | 0 | 0 | | AN (123) Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Andromeda Principal Investments, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | — | Holding company | 72 | 5 | 72 | | ANITCO Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | AP Acquisition Trust I | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Trust company | 0 | 0 | 0 | | AP Acquisition Trust II | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | AP Asset Acquisition LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Financial services | 1 | 0 | 1 | | APSG GP LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 0 | 0 | 0 | | Aquanima Brasil Ltda. | Brazil | 0.00% | 100.00% | | 100.00% | 100.00% | E-commerce | 2 | (1) | 2 | | Aquanima Chile S.A. | Chile | 0.00% | 100.00% | | 100.00% | 100.00% | Services | 3 | (1) | 3 | | Aquanima México S. de R.L. de C.V. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | E-commerce | 4 | (1) | 2 | | Aquanima S.A. | Argentine | 0.00% | 100.00% | | 100.00% | 100.00% | Services | 2 | 0 | 4 | | Ararinha Renda Fixa Crédito Privado - Fundo de Investimento Financeiro | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investment fund | 8 | 0 | 7 | | Artarien S.A. | Uruguay | 100.00% | 0.00% | | 100.00% | 100.00% | Insurance mediation | 6 | 18 | 2 | | Atempo Growth I - Sub-Fund 4 | Luxembourg | 100.00% | 0.00% | | 100.00% | 100.00% | Investment fund | 30 | 4 | 31 | | Atempo Growth II - Sub Fund 3 | Luxembourg | 100.00% | 0.00% | | 100.00% | — | Investment fund | 5 | 0 | 5 | | Atlantes Mortgage No. 3 | Portugal | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Atual - Fundo de Invest Multimercado Crédito Privado Investimento no Exterior | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investment fund | 521 | 27 | 492 | | Auto ABS DFP Master Compartment France 2013 | France | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Auto ABS French Leases 2023 | France | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Auto ABS French Leases 2025 | France | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Auto ABS French Leases Master Compartment 2016 | France | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Auto ABS French Loans 2024 | France | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Auto ABS French Loans Master | France | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Auto ABS Italian Balloon 2019-1 S.r.l. | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Auto ABS Italian Rainbow Loans S.r.l. (j) | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Auto ABS Italian Stella Loans 2023-1 S.r.l. | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Auto ABS Italian Stella Loans S.r.l. (series 2024-1) | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Auto ABS Italian Stella Loans S.r.l. (series 2024-2) | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Auto ABS Italian Stella Loans S.r.l. (series 2025-1) | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Auto ABS Italian Stella Loans S.r.l. (series 2025-2) | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Auto ABS Spanish Loans 2022-1, Fondo de Titulización | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | Annual report 2025867 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + Reserves | Net results | Carrying amount | | Auto ABS Spanish Loans 2024-1, Fondo de Titulización | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Autodescuento, S.L. | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Vehicles purchased by internet | 3 | (1) | 12 | | Autohaus24 GmbH | Germany | 0.00% | 46.95% | | 100.00% | 100.00% | Internet | (2) | 0 | 0 | | Auto-Interleasing AG | Switzerland | 0.00% | 100.00% | | 100.00% | 100.00% | Renting | 27 | 4 | 22 | | Auttar HUT Processamento de Dados Ltda. | Brazil | 0.00% | 100.00% | | 100.00% | 100.00% | IT services | 7 | (1) | 6 | | Aviación Antares, A.I.E. | Spain | 99.99% | 0.01% | | 100.00% | 100.00% | Renting | 72 | (14) | 28 | | Aviación Británica, A.I.E. | Spain | 99.99% | 0.01% | | 100.00% | 100.00% | Renting | 28 | 1 | 6 | | Aviación Comillas, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Renting | 7 | 0 | 8 | | Aviación Laredo, S.L. | Spain | 99.00% | 1.00% | | 100.00% | 100.00% | Air transport | 3 | 0 | 3 | | Aviación Oyambre, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Renting | 1 | 0 | 0 | | Aviación Santillana, S.L. | Spain | 99.00% | 1.00% | | 100.00% | 100.00% | Renting | 6 | 1 | 2 | | Aviación Suances, S.L. | Spain | 99.00% | 1.00% | | 100.00% | 100.00% | Air transport | 7 | 1 | 3 | | Banco Bandepe S.A. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Banking | 825 | 100 | 831 | | Banco de Albacete, S.A. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Banking | 14 | 0 | 9 | | Banco Hyundai Capital Brasil S.A. | Brazil | 0.00% | 44.93% | | 50.00% | 50.00% | Banking | 92 | 30 | 55 | | Banco Santander - Chile | Chile | 0.00% | 67.13% | | 67.18% | 67.18% | Banking | 4,056 | 994 | 3,646 | | Banco Santander (Brasil) S.A. | Brazil | 0.04% | 89.82% | | 90.45% | 90.60% | Banking | 12,347 | 2,395 | 10,795 | | Banco Santander (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander México como Fiduciaria del Fideicomiso 100740 | Mexico | 0.00% | 99.98% | | 100.00% | 100.00% | Finance company | 182 | 20 | 149 | | Banco Santander (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander México como Fiduciaria del Fideicomiso 2002114 | Mexico | 0.00% | 99.98% | | 100.00% | 100.00% | Finance company | 9 | 0 | 10 | | Banco Santander (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander México como Fiduciaria del Fideicomiso GFSSLPT | Mexico | 0.00% | 99.98% | | 100.00% | 100.00% | Finance company | 11 | 1 | 12 | | Banco Santander Argentina S.A. | Argentine | 0.00% | 99.82% | | 99.77% | 99.77% | Banking | 2,427 | 379 | 598 | | Banco Santander Colombia S.A. | Colombia | 92.95% | 7.05% | | 100.00% | 100.00% | Banking | 272 | 11 | 299 | | Banco Santander International | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Banking | 879 | 176 | 1,055 | | Banco Santander International SA | Switzerland | 34.70% | 65.30% | | 100.00% | 100.00% | Banking | 1,424 | (46) | 809 | | Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México | Mexico | 24.93% | 75.05% | | 99.98% | 99.98% | Banking | 6,161 | 1,531 | 8,373 | | Banco Santander Perú S.A. | Peru | 99.90% | 0.10% | | 100.00% | 100.00% | Banking | 329 | 70 | 132 | | Banco Santander S.A. | Uruguay | 97.75% | 2.25% | | 100.00% | 100.00% | Banking | 660 | 156 | 180 | | Banco Santander Totta, S.A. | Portugal | 99.42% | 0.45% | | 99.87% | 99.96% | Banking | 3,608 | 946 | 6,149 | | Banque Stellantis France | France | 0.00% | 50.00% | | 50.00% | 50.00% | Banking | 998 | 152 | 881 | | Bansa Santander S.A. | Chile | 0.00% | 100.00% | | 100.00% | 100.00% | Real estate | 28 | 5 | 34 | | Beyond Wealth, S.A. | Spain | 99.99% | 0.01% | | 100.00% | 100.00% | Consulting services | 3 | (1) | 2 | | Bilkreditt 7 Designated Activity Company (j) | Ireland | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Blecno Investments, S.L. Unipersonal (e) | Spain | — | — | | — | 100.00% | Real estate | — | — | — | | Blue Ocean SBT, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 404 | 6 | 389 | | BRS Investments S.A. | Argentine | 5.10% | 94.90% | | 100.00% | 100.00% | Finance company | 100 | 13 | 75 | | Cántabro Catalana de Inversiones, S.A. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 419 | 4 | 422 | | Capital Street Delaware LP | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 0 | 0 | 0 | | Capital Street Holdings, LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 11 | 0 | 11 | Annual report 2025868 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + Reserves | Net results | Carrying amount | | Capital Street REIT Holdings, LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 973 | 26 | 999 | | Capital Street S.A. | Luxembourg | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 0 | 0 | 0 | | Carmine D - Services, Unipessoal Lda. | Portugal | 0.00% | 100.00% | | 100.00% | 100.00% | Software | 0 | 0 | 2 | | Cartasur Cards S.A. | Argentine | 0.00% | 99.82% | | 100.00% | 100.00% | Finance company | 13 | 1 | 15 | | Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander México | Mexico | 0.00% | 99.97% | | 99.97% | 99.97% | Securities company | 92 | 15 | 107 | | Cater Allen Holdings Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Cater Allen International Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Cater Allen Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Banking | 284 | 100 | 255 | | Cater Allen Syndicate Management Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | CCAP Auto Lease Ltd. | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Leasing | 398 | 22 | 420 | | Centro de Capacitación Santander, A.C. | Mexico | 0.00% | 99.98% | | 100.00% | 100.00% | Non-profit institute | 1 | 0 | 1 | | Certidesa, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Aircraft rental | (67) | (8) | 0 | | Charlotte 2023 Funding Plc | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Securitization | 0 | 0 | 0 | | Charlotte 2023 Holdings Limited | United Kingdom | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Cianite New Energy, S.r.l. | Italy | 0.00% | 49.00% | | 70.00% | 70.00% | Renewable energies | 1 | 0 | 1 | | CIMA Commodities 2025-4 | Ireland | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | CIMA Finance DAC Series 2022-1 | Ireland | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | CIMA Finance DAC Series 2023-1 | Ireland | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | CIMA Luxembourg S.à r.l. 2025-1 | Luxembourg | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | CLM Fleet Management Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Vehicle rental | 2 | 0 | 7 | | Cobranza Amigable, S.A.P.I. de C.V. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Collection services | 5 | 0 | 4 | | Community Development and Affordable Housing Fund LLC (c) | United States | 0.00% | 96.00% | | 96.00% | 96.00% | Asset management | 33 | (2) | 30 | | Compagnie Generale de Credit Aux Particuliers - Credipar S.A. | France | 0.00% | 50.00% | | 100.00% | 100.00% | Banking | 363 | (313) | 428 | | Compagnie Pour la Location de Vehicules - CLV | France | 0.00% | 50.00% | | 100.00% | 100.00% | Banking | 28 | 6 | 26 | | Comparanet, S.A. de C.V. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Insurance mediation | 7 | 0 | 7 | | Consumer Totta 1 | Portugal | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Consumer Totta 2 | Portugal | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Consumer Totta 3 2025 | Portugal | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Contrato de Fideicomiso Irrevocable de Administración INV/6206 | Mexico | — | (b) | | — | — | Trust company | 12 | (8) | 0 | | Contrato de Fideicomiso Irrevocable de Administración Nro. 6168 | Mexico | — | (b) | | — | — | Trust company | 0 | 13 | 0 | | Contrato de Fideicomiso Irrevocable Nro. F/6236 | Mexico | — | (b) | | — | — | Trust company | 0 | 17 | 0 | | Credileads S.A. | Uruguay | 0.00% | 100.00% | | 100.00% | 100.00% | Advertising | 1 | 0 | 5 | | D365 Fundo de Investimento em Direitos Creditórios | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investment fund | (16) | 19 | 3 | | Darep Designated Activity Company | Ireland | 100.00% | 0.00% | | 100.00% | 100.00% | Reinsurances | 12 | 2 | 13 | | Decarome, S.A.P.I. de C.V. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 24 | (1) | 22 | | Decarope S.A.C. | Peru | 0.00% | 100.00% | | 100.00% | 100.00% | Investment company | 9 | 2 | 9 | Annual report 2025869 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + Reserves | Net results | Carrying amount | | Deva Capital Advisory Company, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Advisory services | 4 | 1 | 2 | | Deva Capital Holding Company, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 891 | (12) | 946 | | Deva Capital Investment Company, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 862 | 3 | 810 | | Deva Capital Management Company, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Advisory services | 20 | (12) | 7 | | Deva Capital Servicer Company, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 59 | 0 | 59 | | Diamante New Energy S.r.l. | Italy | 0.00% | 80.00% | | 80.00% | — | Renewable energies | 2 | 0 | 1 | | Diglo Servicer Company 2021, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Real estate management | 26 | 3 | 19 | | Diners Club Spain, S.A. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Cards | 10 | 2 | 11 | | Dirección Estratega, S.C. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Services | 0 | 0 | 0 | | Drive Auto Receivables Trust 2024-1 | United States | — | (b) | | — | — | Securitization | (127) | 82 | 0 | | Drive Auto Receivables Trust 2024-2 | United States | — | (b) | | — | — | Securitization | (286) | 166 | 0 | | Drive Auto Receivables Trust 2025-1 | United States | — | (b) | | — | — | Securitization | 0 | (157) | 0 | | Drive Auto Receivables Trust 2025-2 | United States | — | (b) | | — | — | Securitization | 0 | (223) | 0 | | Drive S.r.l. | Italy | 0.00% | 100.00% | | 100.00% | 75.00% | Renting | 5 | (3) | 9 | | Ductor Real Estate, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Real estate | 22 | 4 | 17 | | Ebury Agent UK Limited | United Kingdom | 0.00% | 66.43% | | 100.00% | — | Financial services | 0 | 0 | 0 | | Ebury Banco de Cambio S.A. | Brazil | 0.00% | 66.43% | | 100.00% | 100.00% | Payment services | 21 | 5 | 17 | | Ebury Banco Holding Participações Ltda. | Brazil | 0.00% | 66.43% | | 100.00% | 100.00% | Holding company | 10 | 0 | 8 | | Ebury Brasil Consultoria S.A. | Brazil | 0.00% | 66.43% | | 100.00% | 100.00% | Consulting services | 93 | 0 | 95 | | Ebury Brasil Holding Ltda. | Brazil | 0.00% | 66.43% | | 100.00% | 100.00% | Holding company | 11 | 0 | 93 | | Ebury Brasil Participações S.A. | Brazil | 0.00% | 66.43% | | 100.00% | 100.00% | Holding company | 95 | 0 | 95 | | Ebury Facilitadora De Pagamentos Ltda. | Brazil | 0.00% | 66.43% | | 100.00% | 100.00% | Software | 0 | 0 | 0 | | Ebury Global Services, S.L. | Spain | 0.00% | 66.43% | | 100.00% | — | Advisory services | 0 | 0 | 0 | | Ebury Mass Payments Holdco Limited (g) | United Kingdom | 0.00% | 66.43% | | 100.00% | 100.00% | Holding company | 8 | 3 | 18 | | Ebury Mass Payments Limited (g) | United Kingdom | 0.00% | 66.43% | | 100.00% | 100.00% | Payment services | 6 | 0 | 0 | | Ebury Partners (DIFC) Limited (g) | Arab United Emirates | 0.00% | 66.43% | | 100.00% | 100.00% | Finance company | 4 | 0 | 5 | | Ebury Partners Australia Pty Ltd. (g) | Australia | 0.00% | 66.43% | | 100.00% | 100.00% | Finance company | 2 | 0 | 2 | | Ebury Partners Belgium NV /SA (g) | Belgium | 0.00% | 66.43% | | 100.00% | 100.00% | Payment services | 20 | 11 | 20 | | Ebury Partners Canada Limited (g) | Canada | 0.00% | 66.43% | | 100.00% | 100.00% | Finance company | 2 | 1 | 6 | | Ebury Partners Chile SpA | Chile | 0.00% | 66.43% | | 100.00% | 100.00% | Finance company | 0 | 0 | 0 | | Ebury Partners China Limited | China | 0.00% | 66.43% | | 100.00% | 100.00% | Marketing | 0 | 0 | 0 | | Ebury Partners Finance Limited (g) | United Kingdom | 0.00% | 66.43% | | 100.00% | 100.00% | Finance company | (11) | (5) | 0 | | Ebury Partners Hong Kong Limited (g) | Hong-Kong | 0.00% | 66.43% | | 100.00% | 100.00% | Finance company | 2 | 2 | 3 | | Ebury Partners Limited (g) | United Kingdom | 0.00% | 66.43% | | 66.43% | 66.43% | Holding company | 222 | (18) | 412 | Annual report 2025870 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + Reserves | Net results | Carrying amount | | Ebury Partners Lithuania UAB | Lithuania | 0.00% | 66.43% | | 100.00% | — | Payment services | 0 | 0 | 4 | | Ebury Partners Markets Cyprus Limited (g) | Cyprus | 0.00% | 66.43% | | 100.00% | 100.00% | Finance company | 0 | 0 | 1 | | Ebury Partners Markets Limited (g) | United Kingdom | 0.00% | 66.43% | | 100.00% | 100.00% | Finance company | 23 | 2 | 17 | | Ebury Partners México, S.A. de C.V. | Mexico | 0.00% | 66.43% | | 100.00% | 100.00% | Payment services | 0 | 0 | 0 | | Ebury Partners Payment Solutions Uganda Limited | Uganda | 0.00% | 66.43% | | 100.00% | — | Finance company | 0 | 0 | 0 | | Ebury Partners Payments - L.L.C. | Arab United Emirates | 0.00% | 66.43% | | 100.00% | — | Payment services | 0 | 0 | 0 | | Ebury Partners Payments Solutions Limited | Kenya | 0.00% | 66.43% | | 100.00% | — | Payment services | 0 | 0 | 0 | | Ebury Partners South Africa (Pty) Ltd (g) | Republic of South Africa | 0.00% | 66.43% | | 100.00% | 100.00% | Finance company | 0 | (1) | 0 | | Ebury Partners Switzerland AG (g) | Switzerland | 0.00% | 66.43% | | 100.00% | 100.00% | Finance company | 6 | 1 | 5 | | Ebury Partners Tanzania Limited | Tanzania | 0.00% | 66.43% | | 100.00% | — | Payment services | 0 | 0 | 0 | | Ebury Partners UK Limited (g) | United Kingdom | 0.00% | 66.43% | | 100.00% | 100.00% | Electronic money | 19 | 6 | 158 | | Ebury Payments PTE Ltd. (g) | Singapore | 0.00% | 66.43% | | 100.00% | 100.00% | Payment services | 1 | 0 | 1 | | Ebury Soluções de Pagamentos Ltda. | Brazil | 0.00% | 66.43% | | 100.00% | 100.00% | Financial services | 2 | 0 | 4 | | Ebury Technology Limited (g) | United Kingdom | 0.00% | 66.43% | | 100.00% | 100.00% | Software | (56) | 6 | 0 | | Ebury Technology Spain, S.L. | Spain | 0.00% | 66.43% | | 100.00% | — | IT consulting | 0 | (1) | 0 | | EDT FTPYME Pastor 3, Fondo de Titulización de Activos | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Elcano Renovables, S.L. | Spain | 0.00% | 70.00% | | 70.00% | 70.00% | Holding company | 0 | 0 | 0 | | Electrolyser, S.A. de C.V. | Mexico | 0.00% | 99.98% | | 100.00% | 100.00% | Services | 0 | 0 | 0 | | Elevate Tech Platforms, S.L. Unipersonal (e) | Spain | — | — | | — | 100.00% | Holding company | — | — | — | | Emdia Serviços Especializados em Cobranças Ltda. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Collection services | 33 | 5 | 34 | | Empresa de Créditos Santander Consumo Perú S.A. | Peru | 100.00% | 0.00% | | 100.00% | 100.00% | Finance company | 55 | 13 | 50 | | Energias Renovables de Ormonde 30, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Renewable energies | 17 | 0 | 24 | | Energias Renovables de Titania, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Renewable energies | 2 | 0 | 6 | | Energias Renovables Gladiateur 45, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Renewable energies | 16 | (1) | 23 | | Energias Renovables Prometeo, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Renewable energies | 3 | 0 | 7 | | Esfera Fidelidade S.A. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Services | 2 | 135 | 124 | | Evidence Previdência S.A. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Insurance | 118 | 2 | 107 | | Eyemobile Tecnologia Ltda. | Brazil | 0.00% | 100.00% | | 100.00% | 100.00% | IT services | 0 | (1) | 0 | | F1rst Tecnologia e Inovação Ltda. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | IT services | 76 | 9 | 77 | | Factum Identity Solutions, S.L. | Spain | 0.00% | 67.20% | | 84.00% | — | IT consulting | 0 | 0 | 0 | | Factum Information Technologies, S.L. | Spain | 0.00% | 80.00% | | 80.00% | — | IT consulting | 8 | (1) | 6 | | Factum IT Limited | United Kingdom | 0.00% | 80.00% | | 100.00% | — | IT consulting | 0 | 0 | 0 | | Factum Navarra, S.L. Unipersonal | Spain | 0.00% | 80.00% | | 100.00% | — | IT consulting | 0 | 0 | 0 | | FIDC Santander Auto Loans I Segmento Financeiro - Responsabilidade Limitada | Brazil | — | (b) | | — | — | Securitization | 465 | 2 | 0 | | Fideicomiso Empresarial Irrevocable de Administración y Garantía F/3443 | Mexico | — | (b) | | — | — | Trust company | 0 | 1 | 0 | Annual report 2025871 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + Reserves | Net results | Carrying amount | | Financeira El Corte Inglés, Portugal, S.F.C., S.A. | Portugal | 0.00% | 51.00% | | 100.00% | 100.00% | Finance company | 8 | 1 | 4 | | Financiera El Corte Inglés, E.F.C., S.A. | Spain | 0.00% | 51.00% | | 51.00% | 51.00% | Finance company | 248 | 55 | 140 | | Finsantusa, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 1,320 | 23 | 1,020 | | First National Motor plc | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | First National Tricity Finance Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 6 | 0 | 6 | | FIT Economia de Energia S.A. | Brazil | 0.00% | 58.41% | | 65.00% | 65.00% | Electricity production | (2) | (7) | 0 | | Flexliving Valdemarín, S.L. | Spain | 0.00% | 27.57% | | 27.57% | 90.00% | Real estate | 14 | 0 | 4 | | Fondo de Titulización PYMES Santander 15 | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Fondo de Titulización Santander Financiación 1 | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Fondo de Titulización, RMBS Santander 7 | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Fondo de Titulización, Santander Consumo 8 | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Fondo de Titulización, Santander Consumo 9 | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Fondos Santander, S.A. Administradora de Fondos de Inversión (en liquidación) (j) | Uruguay | 0.00% | 100.00% | | 100.00% | 100.00% | Fund management company | 0 | 0 | 0 | | Fortensky Trading, Ltd. | Ireland | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 0 | 0 | 0 | | Fosse (Master Issuer) Holdings Limited | United Kingdom | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Fosse Funding (No.1) Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Securitization | 102 | (51) | 0 | | Fosse Master Issuer PLC | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Securitization | 0 | 0 | 0 | | Fosse Trustee (UK) Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Securitization | 0 | 0 | 0 | | Freedom Depository Holdings, LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 0 | 0 | 0 | | Freedom Depository, LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Securitization | 0 | 0 | 0 | | Fulvia SPV S.r.l. | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Fulvia SPV S.r.l. (2025-1) | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Fundo de Investimento em Direitos Creditórios Atacado - Não Padronizado | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investment fund | 115 | 7 | 110 | | Fundo de Investimento em Direitos Creditórios Conretorno - Responsabilidade Limitada | Brazil | 0.00% | 89.86% | | 100.00% | — | Investment fund | 19 | 1 | 18 | | Fundo de Investimento em Direitos Creditórios Multisegmentos NPL Ipanema VI – Não padronizado | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investment fund | 367 | 20 | 347 | | Fundo de Investimento em Direitos Creditórios Tellus | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investment fund | 0 | 0 | 0 | | Gamma, Sociedade Financeira de Titularização de Créditos, S.A. | Portugal | 0.00% | 99.87% | | 100.00% | 100.00% | Securitization | 8 | 0 | 8 | | GC FTPYME Pastor 4, Fondo de Titulización de Activos | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Generación de Energía Villahermosa, S.A.P.I. de C.V. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Electricity production | 6 | 0 | 7 | | Gesban México Servicios Administrativos Globales, S.A. de C.V. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Services | 2 | 0 | 0 | | Gesban Santander Servicios Profesionales Contables Limitada | Chile | 0.00% | 100.00% | | 100.00% | 100.00% | Accounting services | 1 | 0 | 0 | | Gesban Servicios Administrativos Globales, S.L. | Spain | 99.99% | 0.01% | | 100.00% | 100.00% | Services | 4 | 0 | 1 | Annual report 2025872 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + Reserves | Net results | Carrying amount | | Gesban UK Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Payments and collection services | 2 | 0 | 0 | | Gestión de Inversiones JILT, S.A. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Services | 15 | 0 | 15 | | Gestora de Procesos S.A. en liquidación (j) | Peru | 100.00% | 0.00% | | 100.00% | 100.00% | Financial services | (1) | 0 | 0 | | Getnet Adquirência e Serviços para Meios de Pagamento S.A. - Instituição de Pagamento | Brazil | 0.00% | 100.00% | | 100.00% | 100.00% | Payment services | 434 | 98 | 317 | | Getnet Argentina S.A.U. | Argentine | 0.00% | 100.00% | | 100.00% | 100.00% | Payment methods | 25 | (1) | 23 | | Getnet Europe, Entidad de Pago, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Payment services | 158 | 22 | 137 | | Getnet Fundo de Investimento em Direitos Creditórios | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investment fund | 9 | 1 | 8 | | Getnet Merchant Solutions UK Ltd | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Financial services | 0 | 0 | 0 | | Getnet México Servicios de Adquirencia, S.A. de C.V. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Payments and collection services | 154 | 59 | 175 | | Getnet Payments, S.L. | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 927 | 135 | 1,199 | | Getnet Sociedade de Credito Direto S.A. | Brazil | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 14 | 1 | 15 | | Getnet Technology and Operations Brasil Ltda. | Brazil | 0.00% | 100.00% | | 100.00% | 100.00% | IT services | 127 | (15) | 112 | | Getnet Uruguay S.A. | Uruguay | 0.00% | 100.00% | | 100.00% | 100.00% | Payment methods | 15 | (1) | 15 | | GNXT Serviços de Atendimento Ltda. | Brazil | 0.00% | 100.00% | | 100.00% | 100.00% | Telemarketing | 4 | 0 | 4 | | Golden Bar (Securitisation) S.r.l. | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Golden Bar Stand Alone 2021-1 | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Golden Bar Stand Alone 2022-1 | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Golden Bar Stand Alone 2023-2 | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Golden Bar Stand Alone 2024-1 | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Golden Bar Stand Alone 2025-1 | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Golden Bar Stand Alone 2025-2 | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Grafite New Energy, S.r.l. | Italy | 0.00% | 49.00% | | 70.00% | 70.00% | Renewable energies | 1 | 0 | 1 | | Gravity Cloud Technology, S.L. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | IT services | 34 | 0 | 33 | | Grupo Empresarial Santander, S.L. | Spain | 99.62% | 0.38% | | 100.00% | 100.00% | Holding company | 5,259 | 403 | 2,879 | | Grupo Financiero Santander México, S.A. de C.V. | Mexico | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 4,961 | 1,096 | 5,860 | | Hipototta No. 13 | Portugal | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Hipototta No. 14 | Portugal | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Hipototta No. 4 plc (j) | Ireland | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Hipototta No. 5 plc (j) | Ireland | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Holbah Santander, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 797 | 84 | 870 | | Holmes Funding Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Securitization | 215 | (79) | 0 | | Holmes Holdings Limited | United Kingdom | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Holmes Master Issuer plc | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Securitization | 1 | 0 | 0 | | Holmes Trustees Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Securitization | 0 | 0 | 0 | | Hyundai Capital Bank Europe GmbH | Germany | 0.00% | 51.00% | | 51.00% | 51.00% | Banking | 1,125 | 16 | 558 | Annual report 2025873 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + Reserves | Net results | Carrying amount | | Hyundai Fundo de Investimento em Direitos Creditórios | Brazil | 0.00% | 44.93% | | 100.00% | 100.00% | Investment fund | 266 | 48 | 141 | | Ibérica de Compras Corporativas, S.L. | Spain | 97.17% | 2.82% | | 100.00% | 100.00% | E-commerce | 29 | (2) | 6 | | Innohub, S.A.P.I. de C.V. (j) | Mexico | 0.00% | 62.01% | | 69.54% | 69.54% | IT services | 0 | 0 | 0 | | Insurance Funding Solutions Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Inversiones Capital Global, S.A. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 102 | 6 | 107 | | Inversiones Marítimas del Mediterráneo, S.A., en liquidación (c) (j) | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 2 | (1) | 0 | | Investment Holdings 1857, S.L. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 32 | 357 | 33 | | Isar Valley S.A. | Luxembourg | — | (b) | | — | — | Securitization | (3) | 0 | 0 | | Isla de los Buques, S.A. | Spain | 99.98% | 0.02% | | 100.00% | 100.00% | Finance company | 1 | 0 | 1 | | Klare Corredora de Seguros Limitada | Chile | 0.00% | 100.00% | | 100.00% | 100.00% | Insurance mediation | (4) | (1) | 0 | | Landcompany 2020, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Real estate management | 1,577 | (22) | 1,609 | | Laparanza, S.A. | Spain | 61.59% | 0.00% | | 61.59% | 61.59% | Agricultural holding | 29 | 0 | 16 | | Lerma Investments 2018, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Real estate | 11 | 0 | 11 | | Liquetine, S.L. Unipersonal | Spain | 0.00% | 70.00% | | 100.00% | 100.00% | Renewable energies | 11 | 0 | 10 | | Lynx Financial Crime Tech, S.A. | Spain | 0.00% | 79.99% | | 79.99% | 79.99% | IT services | 54 | 1 | 48 | | MAC No. 1 Limited | United Kingdom | — | (b) | | — | — | Inactive | (1) | 0 | 0 | | Macroscope S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | — | Consulting services | 3 | (1) | 4 | | Mascor SPV 2025, S.L. | Spain | 0.00% | 29.10% | | 29.10% | — | Real estate | 8 | 0 | 2 | | Master Red Europa, S.L. | Spain | 96.34% | 0.00% | | 96.34% | 96.34% | Cards | 1 | 0 | 1 | | Mata Alta, S.L. Unipersonal | Spain | 0.00% | 61.59% | | 100.00% | 100.00% | Agricultural holding | 0 | 0 | 0 | | MCE Bank GmbH (d) | Germany | 0.00% | 90.01% | | 90.01% | 90.01% | Banking | 168 | 0 | 117 | | MCE Verwaltung GmbH (d) | Germany | 0.00% | 90.01% | | 100.00% | 100.00% | Real estate rental | 10 | 0 | 9 | | Mercadotecnia, Ideas y Tecnología, S.A. de C.V. | Mexico | 0.00% | 70.00% | | 70.00% | 70.00% | Payment methods | 0 | 13 | 45 | | Merciver, S.L. | Spain | 99.90% | 0.10% | | 100.00% | 100.00% | Financial advisory | 0 | 0 | 0 | | Midata Service GmbH (d) | Germany | 0.00% | 90.01% | | 100.00% | 100.00% | IT services | 0 | 0 | 0 | | Moon GC&P Investments, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 91 | (2) | 85 | | Mouro Capital I LP | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Investment fund | 787 | 311 | 822 | | Multiplica SpA | Chile | 0.00% | 100.00% | | 100.00% | 100.00% | Payment services | 2 | 0 | 2 | | Murattabat International Business Services | Palestine | 0.00% | 66.43% | | 100.00% | — | IT consulting | 0 | 0 | 0 | | Navegante Américo Vespucio SpA | Chile | 0.00% | 100.00% | | 100.00% | 100.00% | Real estate | 59 | (2) | 90 | | Naviera Mirambel, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 0 | 0 | 0 | | Naviera Trans Gas, A.I.E. | Spain | 99.99% | 0.01% | | 100.00% | 100.00% | Renting | 60 | (1) | 62 | Annual report 2025874 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Naviera Transcantábrica, S.L. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Leasing | 5 | 0 | 4 | | Naviera Transchem, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Leasing | 1 | 0 | 1 | | Navigator Global Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Internet | 14 | (4) | 14 | | NeoAuto S.A.C. | Peru | 0.00% | 100.00% | | 100.00% | 100.00% | Vehicles purchased by internet | 1 | (1) | 2 | | Newcomar, S.L., en liquidación (j) | Spain | 40.00% | 40.00% | | 80.00% | 80.00% | Real estate | 0 | 0 | 0 | | Novimovest – Fundo de Investimento Imobiliário | Portugal | 0.00% | 78.76% | | 78.86% | 78.74% | Investment fund | 119 | 2 | 96 | | NW Services CO. | United States | 0.00% | 100.00% | | 100.00% | 100.00% | E-commerce | 7 | 3 | 8 | | One Mobility Management GmbH | Germany | 0.00% | 46.95% | | 100.00% | 100.00% | Services | 0 | 0 | 0 | | Open Bank, S.A. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Banking | 666 | 66 | 630 | | Open Digital Market, S.L. | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Commerce | 0 | 0 | 0 | | Open Digital Services, S.L. | Spain | 99.97% | 0.03% | | 100.00% | 100.00% | Services | 38 | (12) | 20 | | Openbank México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Banking | 244 | (66) | 177 | | Operadora de Carteras Gamma, S.A.P.I. de C.V. | Mexico | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 12 | 0 | 6 | | Optimal Investment Services SA | Switzerland | 100.00% | 0.00% | | 100.00% | 100.00% | Fund management company | 45 | 0 | 30 | | Optimal Multiadvisors Ireland Plc / Optimal Strategic US Equity Ireland Euro Fund (i) (m) | Ireland | 0.00% | 0.00% | | 0.00% | 0.00% | Fund management company | 0 | 0 | 0 | | Optimal Multiadvisors Ireland Plc / Optimal Strategic US Equity Ireland US Dollar Fund (i) (m) | Ireland | 0.00% | 0.00% | | 0.00% | 0.00% | Fund management company | 0 | 0 | 0 | | Paga Después, S.A. de C.V. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Financial services | 3 | 0 | 3 | | PagoNxt Emoney, E.D.E., S.L. | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Financial services | 4 | (1) | 4 | | PagoNxt Ltd | United Kingdom | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 0 | 0 | 0 | | PagoNxt Merchant Solutions FZ-LLC (j) | Arab United Emirates | 0.00% | 100.00% | | 100.00% | 100.00% | Financial services | 1 | 0 | 1 | | PagoNxt Merchant Solutions India Private Limited (d) (j) | India | 0.00% | 100.00% | | 100.00% | 100.00% | Financial services | 0 | 0 | 0 | | PagoNxt Payments Brasil Ltda. | Brazil | 0.00% | 100.00% | | 100.00% | 100.00% | Financial services | 3 | 0 | 3 | | PagoNxt Payments Chile SpA | Chile | 0.00% | 100.00% | | 100.00% | 100.00% | Services | 1 | 0 | 1 | | PagoNxt Payments México, S.A. de C.V. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | IT services | 1 | 1 | 2 | | PagoNxt Payments Services, S.L. | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Services | 275 | (47) | 227 | | PagoNxt Payments UK Ltd | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Payment services | 4 | (2) | 4 | | PagoNxt Payments, S.L. | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | IT services | 348 | (57) | 291 | | PagoNxt US, LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | PagoNxt, S.L. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 1,964 | (22) | 3,332 | | Paytec Tecnologia em Pagamentos Ltda. | Brazil | 0.00% | 100.00% | | 100.00% | 100.00% | Commerce | 4 | (1) | 4 | | PBE Companies, LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Real estate | 104 | (4) | 101 | | Pereda Gestión, S.A. | Spain | 99.99% | 0.01% | | 100.00% | 100.00% | Securities brokerage | 52 | 42 | 4 | | Phoenix S.A. | Uruguay | 0.00% | 100.00% | | 100.00% | 100.00% | Payment methods | 4 | 1 | 7 | | Pinle SPV 2024, S.L. | Spain | 0.00% | 27.57% | | 27.57% | — | Real estate | 5 | 0 | 1 | | Pony S.A. | Luxembourg | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Pony S.A., Compartment German Auto Loans 2023-1 | Luxembourg | — | (b) | | — | — | Securitization | 0 | 0 | 0 | Annual report 2025875 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Pony S.A., Compartment German Auto Loans 2024-1 | Luxembourg | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Pony S.A., Compartment German Auto Loans 2025-1 | Luxembourg | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Portal Universia Argentina S.A. | Argentine | 0.00% | 75.75% | | 75.75% | 75.75% | Internet | 0 | 0 | 0 | | Portal Universia Portugal, Prestação de Serviços de Informática, S.A. | Portugal | 0.00% | 100.00% | | 100.00% | 100.00% | Internet | 0 | 0 | 0 | | Precato IV Fundo de Investimento em Direitos Creditórios - Não Padronizados | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investment fund | 45 | 8 | 41 | | Prime 16 – Fundo de Investimentos Imobiliário | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investment fund | 4 | 0 | 4 | | PT Trans Skills Employer Services | Indonesia | 0.00% | 66.43% | | 100.00% | — | Consulting services | 0 | 0 | 0 | | Pulse Client Experts Ltda. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Telemarketing | 18 | 2 | 18 | | Punta Lima, LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Leasing | 0 | 1 | 0 | | Redoto SPV 2025, S.L. | Spain | 0.00% | 30.60% | | 30.60% | — | Real estate | 46 | 0 | 14 | | Repton 2023-1 Limited | United Kingdom | — | (b) | | — | — | Securitization | 1 | 1 | 0 | | Retailcompany 2021, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Real estate | 298 | (15) | 293 | | Retop S.A. (f) | Uruguay | 100.00% | 0.00% | | 100.00% | 100.00% | Finance company | 39 | (1) | 62 | | Return Capital Gestão de Ativos e Participações S.A. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Collection services | (32) | 90 | 52 | | Rojo Entretenimento S.A. | Brazil | 0.00% | 85.01% | | 94.60% | 94.60% | Real estate | 25 | 2 | 23 | | SAFO Alternative Lending, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 39 | 1 | 43 | | SAI Alternative Investments México, S.A. de C.V. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Consulting services | 1 | (1) | 1 | | SAI Lux Carry SCSp | Luxembourg | 0.00% | 100.00% | | 100.00% | 100.00% | Fund management company | 0 | 0 | 0 | | Sainte Julie Fundo de Investimento em Direitos Creditórios Não-Padronizados Responsabilidade Limitada | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investment fund | 81 | 30 | 100 | | SALCO, Servicios de Seguridad Santander, S.A. | Spain | 99.99% | 0.01% | | 100.00% | 100.00% | Safety | 2 | 1 | 1 | | SAM Argentina Sociedad Gerente de Fondos Comunes de Inversión S.A. | Argentine | 0.00% | 100.00% | | 100.00% | 100.00% | Investment fund management | 2 | 0 | 2 | | SAM Asset Management, S.A. de C.V., Sociedad Operadora de Fondos de Inversión | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Fund management company | 14 | 43 | 193 | | SAM Inversiones Argentina S.A. | Argentine | 0.00% | 100.00% | | 100.00% | 100.00% | Pension fund management company | 0 | 0 | 1 | | SAM Investment Holdings, S.L. | Spain | 92.37% | 7.63% | | 100.00% | 100.00% | Holding company | 1,274 | 194 | 1,450 | | San Pietro Solar PV, S.r.l. | Italy | 0.00% | 56.00% | | 80.00% | 80.00% | Renewable energies | 18 | (1) | 19 | | San Preca Federal I Fundo de Investimento em Direitos Creditórios Não-Padronizados | Brazil | 0.00% | 86.59% | | 96.36% | 50.00% | Investment fund | 8 | 8 | 14 | | SANB Promotora de Vendas e Cobrança S.A. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Finance company | 1 | 5 | 6 | | Sancap Investimentos e Participações S.A. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Holding company | 94 | 110 | 164 | | Santander (CF Trustee Property Nominee) Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Santander (CF Trustee) Limited (d) | United Kingdom | — | (b) | | — | — | Inactive | 0 | 0 | 0 | | Santander (Luxembourg) Issuer S.à r.l. | Luxembourg | 100.00% | 0.00% | | 100.00% | — | Securitization | 0 | 0 | 0 | | Santander (UK) Group Pension Schemes Trustees Limited (d) | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | Annual report 2025876 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Santander Alternative Investments, S.G.I.I.C., S.A. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Fund management company | 21 | (6) | 40 | | Santander AM Global Working Capital Fund I | Luxembourg | 100.00% | 0.00% | | 100.00% | 100.00% | Investment fund | 70 | 3 | 71 | | Santander Asesorías Financieras Limitada | Chile | 0.00% | 67.45% | | 100.00% | 100.00% | Financial advisory | 11 | 4 | 11 | | Santander Asset Finance Opportunities | Luxembourg | 100.00% | 0.00% | | 100.00% | 100.00% | Investment fund | 192 | 11 | 191 | | Santander Asset Finance plc | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Leasing | 96 | 86 | 166 | | Santander Asset Management - SGOIC, S.A. | Portugal | 0.00% | 100.00% | | 100.00% | 100.00% | Fund management company | 6 | 4 | 9 | | Santander Asset Management Chile S.A. | Chile | 0.00% | 100.00% | | 100.00% | 100.00% | Securities investment | 0 | 0 | 0 | | Santander Asset Management Gerente de Fondos Comunes de Inversión S.A. | Argentine | 0.00% | 100.00% | | 100.00% | 100.00% | Fund management company | 6 | 20 | 3 | | Santander Asset Management Luxembourg, S.A. | Luxembourg | 0.00% | 100.00% | | 100.00% | 100.00% | Fund management company | 5 | 1 | 0 | | Santander Asset Management S.A. Administradora General de Fondos | Chile | 0.00% | 100.00% | | 100.00% | 100.00% | Fund management company | (3) | 18 | 132 | | Santander Asset Management UK Holdings Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 218 | 74 | 186 | | Santander Asset Management UK Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Management of funds and portfolios | 30 | 6 | 129 | | Santander Asset Management, S.A., SGIIC Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Fund management company | 227 | 101 | 277 | | Santander Auto Lease Titling Ltd. | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Leasing | 8 | (15) | 0 | | Santander Back-Offices Globales Mayoristas, S.A. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Services | 5 | 6 | 1 | | Santander Banca de Inversión Colombia, S.A.S. | Colombia | 100.00% | 0.00% | | 100.00% | 100.00% | Advisory services | 1 | 3 | 2 | | Santander Bank Polska S.A. | Poland | 58.70% | 0.00% | | 58.70% | 62.20% | Banking | 6,308 | 1,590 | 4,051 | | Santander Bank, National Association | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Banking | 10,871 | 1,183 | 12,035 | | Santander Brasil Administradora de Consórcio Ltda. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Services | 70 | 83 | 138 | | Santander Brasil Gestão de Recursos Ltda. | Brazil | 0.08% | 99.92% | | 100.00% | 100.00% | Securities investment | 387 | 45 | 423 | | Santander Capital Holdings LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 851 | 53 | 904 | | Santander Capital Structuring, S.A. de C.V. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 5 | 0 | 0 | | Santander Capitalização S.A. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Insurance | (47) | 101 | 48 | | Santander Cards Ireland Limited (n) | Ireland | 0.00% | 100.00% | | 100.00% | 100.00% | Cards | (8) | 0 | 0 | | Santander Cards Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 96 | 0 | 96 | | Santander Cards UK Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 145 | (15) | 121 | | Santander Chile Holding S.A. | Chile | 22.11% | 77.75% | | 99.86% | 99.86% | Holding company | 1,565 | 355 | 1,862 | | Santander Commercial Mortgage Securities LLC | United States | 0.00% | 100.00% | | 100.00% | — | Finance company | 0 | 0 | 0 | | Santander Compara Holding, S.L. | Spain | 99.97% | 0.03% | | 100.00% | 100.00% | Holding company | 12 | 0 | 12 | | Santander Consulting (Beijing) Co., Ltd. | China | 0.00% | 100.00% | | 100.00% | 100.00% | Advisory services | 10 | 0 | 4 | | Santander Consumer (UK) plc | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 938 | (109) | 298 | Annual report 2025877 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Santander Consumer Auto Receivables Funding 2018-L3 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 117 | (1) | 0 | | Santander Consumer Auto Receivables Funding 2022-B1 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | (56) | 17 | 0 | | Santander Consumer Auto Receivables Funding 2022-B2 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | (64) | 22 | 0 | | Santander Consumer Auto Receivables Funding 2022-B3 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | (103) | 66 | 0 | | Santander Consumer Auto Receivables Funding 2022-B4 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | (58) | 30 | 0 | | Santander Consumer Auto Receivables Funding 2023-B1 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | (48) | 53 | 0 | | Santander Consumer Auto Receivables Funding 2023-B2 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | (44) | 22 | 0 | | Santander Consumer Auto Receivables Funding 2023-B3 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | (40) | 20 | 0 | | Santander Consumer Auto Receivables Funding 2023-B4 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | (46) | 23 | 0 | | Santander Consumer Auto Receivables Funding 2023-B5 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Santander Consumer Auto Receivables Funding 2023-B6 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Santander Consumer Auto Receivables Funding 2024-B2 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Santander Consumer Auto Receivables Funding 2024-B3 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Santander Consumer Auto Receivables Funding 2025-B1 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Santander Consumer Auto Receivables Funding 2025-L1 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 0 | (14) | 0 | | Santander Consumer Auto Receivables Funding 2025-L2 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Santander Consumer Auto Receivables Funding 2025-L3 LLC | United States | 0.00% | 100.00% | | 100.00% | — | Inactive | 0 | 0 | 0 | | Santander Consumer Auto Receivables Funding 2025-L4 LLC | United States | 0.00% | 100.00% | | 100.00% | — | Inactive | 0 | 0 | 0 | | Santander Consumer Bank | Canada | 0.00% | 100.00% | | 100.00% | — | Banking | 140 | 3 | 167 | | Santander Consumer Bank AG | Germany | 0.00% | 100.00% | | 100.00% | 100.00% | Banking | 3,588 | 187 | 5,345 | | Santander Consumer Bank AS | Norway | 0.00% | 100.00% | | 100.00% | 100.00% | Banking | 1,912 | 183 | 2,141 | | Santander Consumer Bank GmbH | Austria | 0.00% | 100.00% | | 100.00% | 100.00% | Banking | 584 | 39 | 363 | | Santander Consumer Bank S.A. | Poland | 0.00% | 100.00% | | 100.00% | 100.00% | Banking | 988 | 93 | 940 | | Santander Consumer Bank S.A. | Peru | 100.00% | 0.00% | | 100.00% | — | Banking | 187 | 25 | 160 | | Santander Consumer Bank S.p.A. | Italy | 0.00% | 100.00% | | 100.00% | 100.00% | Banking | 970 | 68 | 603 | | Santander Consumer Credit Services Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 1 | (1) | 0 | | Santander Consumer Finance Global Services, S.L. | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | IT | 6 | 4 | 5 | | Santander Consumer Finance Limitada | Chile | 49.00% | 34.24% | | 100.00% | 100.00% | Finance company | 120 | 27 | 65 | | Santander Consumer Finance México, S.A. de C.V., S.O.F.O.M., E.R., Grupo Financiero Santander México | Mexico | 0.00% | 99.98% | | 100.00% | 100.00% | Inactive | 2 | 0 | 2 | | Santander Consumer Finance Oy | Finland | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 488 | 20 | 159 | | Santander Consumer Finance Schweiz AG | Switzerland | 0.00% | 100.00% | | 100.00% | 100.00% | Leasing | 61 | (13) | 60 | | Santander Consumer Finance, S.A. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Banking | 9,109 | 612 | 10,039 | | Santander Consumer Financial Solutions Sp. z o.o. | Poland | 0.00% | 100.00% | | 100.00% | 100.00% | Leasing | (3) | 1 | 7 | | Santander Consumer Holding Austria GmbH | Austria | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 364 | 0 | 518 | Annual report 2025878 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Santander Consumer Holding GmbH | Germany | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 5,564 | 83 | 6,077 | | Santander Consumer Lease Receivables 1 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | (20) | 3 | 0 | | Santander Consumer Leasing GmbH | Germany | 0.00% | 100.00% | | 100.00% | 100.00% | Leasing | 77 | 104 | 158 | | Santander Consumer Leasing S.A. | France | 0.00% | 100.00% | | 100.00% | 100.00% | Renting | 3 | 0 | 3 | | Santander Consumer Mobility Services, S.A. | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Renting | 8 | (2) | 8 | | Santander Consumer Multirent Sp. z o.o. | Poland | 0.00% | 100.00% | | 100.00% | 100.00% | Leasing | 42 | 9 | 36 | | Santander Consumer Operations Services GmbH | Germany | 0.00% | 100.00% | | 100.00% | 100.00% | Services | 16 | 0 | 18 | | Santander Consumer Receivables 11 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 618 | 283 | 0 | | Santander Consumer Receivables 15 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | (8) | 75 | 0 | | Santander Consumer Receivables 16 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | (6) | 130 | 0 | | Santander Consumer Receivables 20 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 0 | (254) | 0 | | Santander Consumer Receivables 21 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Santander Consumer Receivables 7 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 726 | 164 | 0 | | Santander Consumer Receivables Funding LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 10 | 3 | 0 | | Santander Consumer Renting S.r.l. | Italy | 0.00% | 100.00% | | 100.00% | 100.00% | Renting | 12 | (5) | 18 | | Santander Consumer Renting, S.L. | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Renting | 47 | 2 | 41 | | Santander Consumer S.A. | Argentine | 0.00% | 99.82% | | 100.00% | 100.00% | Finance company | 15 | (3) | 13 | | Santander Consumer Services GmbH | Austria | 0.00% | 100.00% | | 100.00% | 100.00% | Services | 0 | 0 | 0 | | Santander Consumer Services, S.A. | Portugal | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 13 | 1 | 6 | | Santander Consumer Spain Auto 2019-1, Fondo de Titulización | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Santander Consumer Spain Auto 2020-1, Fondo de Titulización | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Santander Consumer Spain Auto 2021-1, Fondo de Titulización | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Santander Consumer Spain Auto 2022-1, Fondo de Titulización | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Santander Consumer Spain Auto 2023-1, Fondo de Titulización | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Santander Consumer Spain Auto 2024-1, Fondo de Titulización | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Santander Consumer Spain Auto 2025-1, Fondo de Titulización | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Santander Consumer Technology Services GmbH | Germany | 0.00% | 100.00% | | 100.00% | 100.00% | IT services | 31 | 1 | 22 | | Santander Consumer USA Holdings Inc. | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 3,079 | 589 | 4,580 | | Santander Consumer USA Inc. | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 4,922 | 590 | 5,512 | | Santander Consumo 4, F.T. | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Santander Consumo 5, F.T. | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Santander Consumo 6, F.T. | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Santander Consumo 7, F.T. | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Santander Corredora de Seguros Limitada | Chile | 0.00% | 67.21% | | 100.00% | 100.00% | Insurance mediation | 19 | 3 | 14 | | Santander Corredores de Bolsa Limitada | Chile | 0.00% | 83.24% | | 100.00% | 100.00% | Securities company | 58 | 3 | 51 | Annual report 2025879 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Santander Corretora de Câmbio e Valores Mobiliários S.A. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Securities company | 143 | 28 | 154 | | Santander Corretora de Seguros, Investimentos e Serviços S.A. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Insurance mediation | 665 | 325 | 887 | | Santander Customer Voice, S.A. | Spain | 99.50% | 0.50% | | 100.00% | 100.00% | Services | 9 | (10) | 0 | | Santander de Titulización, S.G.F.T., S.A. | Spain | 81.00% | 19.00% | | 100.00% | 100.00% | Fund management company | 5 | 5 | 2 | | Santander Distribuidora de Títulos e Valores Mobiliários S.A. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Securities company | 75 | 11 | 77 | | Santander Drive Auto Receivables LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 0 | 0 | 0 | | Santander Drive Auto Receivables Trust 2022-2 | United States | — | (b) | | — | — | Securitization | (25) | 33 | 0 | | Santander Drive Auto Receivables Trust 2022-3 | United States | — | (b) | | — | — | Securitization | (41) | 26 | 0 | | Santander Drive Auto Receivables Trust 2022-4 | United States | — | (b) | | — | — | Securitization | (72) | 36 | 0 | | Santander Drive Auto Receivables Trust 2022-5 | United States | — | (b) | | — | — | Securitization | (102) | 37 | 0 | | Santander Drive Auto Receivables Trust 2022-6 | United States | — | (b) | | — | — | Securitization | (96) | 40 | 0 | | Santander Drive Auto Receivables Trust 2022-7 | United States | — | (b) | | — | — | Securitization | (45) | 24 | 0 | | Santander Drive Auto Receivables Trust 2023-1 | United States | — | (b) | | — | — | Securitization | (24) | 38 | 0 | | Santander Drive Auto Receivables Trust 2023-2 | United States | — | (b) | | — | — | Securitization | (47) | 56 | 0 | | Santander Drive Auto Receivables Trust 2023-3 | United States | — | (b) | | — | — | Securitization | (74) | 65 | 0 | | Santander Drive Auto Receivables Trust 2023-4 | United States | — | (b) | | — | — | Securitization | (78) | 53 | 0 | | Santander Drive Auto Receivables Trust 2023-5 | United States | — | (b) | | — | — | Securitization | (74) | 54 | 0 | | Santander Drive Auto Receivables Trust 2023-6 | United States | — | (b) | | — | — | Securitization | (62) | 47 | 0 | | Santander Drive Auto Receivables Trust 2024-1 | United States | — | (b) | | — | — | Securitization | (99) | 68 | 0 | | Santander Drive Auto Receivables Trust 2024-2 | United States | — | (b) | | — | — | Securitization | (149) | 103 | 0 | | Santander Drive Auto Receivables Trust 2024-3 | United States | — | (b) | | — | — | Securitization | (182) | 127 | 0 | | Santander Drive Auto Receivables Trust 2024-4 | United States | — | (b) | | — | — | Securitization | (207) | 146 | 0 | | Santander Drive Auto Receivables Trust 2024-5 | United States | — | (b) | | — | — | Securitization | (182) | 119 | 0 | | Santander Drive Auto Receivables Trust 2025-1 | United States | — | (b) | | — | — | Securitization | 0 | (116) | 0 | | Santander Drive Auto Receivables Trust 2025-2 | United States | — | (b) | | — | — | Securitization | 0 | (134) | 0 | | Santander Drive Auto Receivables Trust 2025-3 | United States | — | (b) | | — | — | Securitization | 0 | (186) | 0 | | Santander Drive Auto Receivables Trust 2025-4 | United States | — | (b) | | — | — | Securitization | 0 | (218) | 0 | | Santander Empresa Administradora de Fondos Colectivos S.A. | Peru | 99.00% | 1.00% | | 100.00% | 100.00% | Investment company | 1 | (1) | 0 | | Santander Equity Investments Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 94 | 5 | 34 | | Santander España Servicios Legales, S.L. | Spain | 99.97% | 0.03% | | 100.00% | 100.00% | Services | 9 | 0 | 8 | | Santander Estates Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Real estate | 7 | 0 | 7 | Annual report 2025880 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Santander European Hospitality Opportunities | Luxembourg | 100.00% | 0.00% | | 100.00% | 100.00% | Investment fund | 33 | 0 | 30 | | Santander F24 S.A. | Poland | 0.00% | 58.70% | | 100.00% | 100.00% | Finance company | 3 | 0 | 2 | | Santander Facility Management España, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Real estate | 786 | 0 | 786 | | Santander Factoring S.A. | Chile | 0.00% | 99.86% | | 100.00% | 100.00% | Factoring | 9 | 0 | 9 | | Santander Factoring Sp. z o.o. | Poland | 0.00% | 58.70% | | 100.00% | 100.00% | Financial services | 78 | 11 | 1 | | Santander Factoring y Confirming, S.A. Unipersonal, E.F.C. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Factoring | 223 | 47 | 126 | | Santander FI Hedge Strategies | Ireland | 0.00% | 89.86% | | 100.00% | 100.00% | Investment fund | 421 | 110 | 478 | | Santander Finance 2012-1 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Financial services | 3 | 0 | 3 | | Santander Financial Exchanges Limited (j) | United Kingdom | 100.00% | 0.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Santander Financial Services plc | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Banking | 350 | 27 | 443 | | Santander Financiamientos S.A. | Peru | 100.00% | 0.00% | | 100.00% | 100.00% | Finance company | 34 | 0 | 34 | | Santander Financing S.A.S. | Colombia | 100.00% | 0.00% | | 100.00% | 100.00% | Financial advisory | 3 | 0 | 3 | | Santander Finanse Sp. z o.o. | Poland | 0.00% | 58.70% | | 100.00% | 100.00% | Financial services | 64 | 12 | 18 | | Santander Fundo de Investimento Amazonas Multimercado Crédito Privado Investimento no Exterior (o) | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investment fund | 440 | 64 | 453 | | Santander Fundo de Investimento Diamantina Multimercado Crédito Privado Investimento no Exterior (h) | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investment fund | 776 | 142 | 824 | | Santander Fundo de Investimento Guarujá Multimercado Crédito Privado Investimento no Exterior | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investment fund | 150 | 14 | 148 | | Santander Gestión de Recaudación y Cobranzas Ltda. | Chile | 0.00% | 99.86% | | 100.00% | 100.00% | Financial services | 8 | 1 | 9 | | Santander Global Cards & Digital Solutions Brasil S.A. | Brazil | 0.00% | 100.00% | | 100.00% | 100.00% | IT consulting | 85 | 4 | 93 | | Santander Global Cards & Digital Solutions, S.L. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | IT services | 222 | 1 | 222 | | Santander Global Consumer Finance Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 7 | 0 | 7 | | Santander Global Facilities, S.A. de C.V. | Mexico | 100.00% | 0.00% | | 100.00% | 100.00% | Services | 167 | 8 | 174 | | Santander Global Services S.A. (j) | Uruguay | 0.00% | 100.00% | | 100.00% | 100.00% | Services | 0 | 0 | 0 | | Santander Global Services, S.L. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Real estate | 7 | 1 | 7 | | Santander Global Technology and Operations Brasil Ltda. | Brazil | 0.00% | 100.00% | | 100.00% | 100.00% | IT services | 26 | 0 | 18 | | Santander Global Technology and Operations Chile Limitada | Chile | 0.00% | 100.00% | | 100.00% | 100.00% | IT services | 5 | 1 | 6 | | Santander Global Technology and Operations, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | IT services | 694 | 15 | 668 | | Santander Green Investment, S.L. | Spain | 99.97% | 0.03% | | 100.00% | 100.00% | Holding company | 139 | 1 | 135 | | Santander Group Properties, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 1,100 | 5 | 1,077 | | Santander Guarantee Company (j) | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Santander Hera Renda Fixa Fundo Incentivado de Investimento em Infraestrutura Responsabilidade Limitada | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investment fund | 2,779 | 212 | 2,688 | | Santander Hermes Multimercado Crédito Privado Infraestructura Fundo de Investimento | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investment fund | 169 | 9 | 160 | Annual report 2025881 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Santander Hipotecario 2 Fondo de Titulización de Activos | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Santander Hipotecario 3 Fondo de Titulización de Activos | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Santander Holding Imobiliária S.A. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Real estate | 64 | 6 | 63 | | Santander Holding Internacional, S.A. | Spain | 99.95% | 0.05% | | 100.00% | 100.00% | Holding company | 4,271 | 96 | 2,506 | | Santander Holdings USA, Inc. | United States | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 13,865 | 1,399 | 14,425 | | Santander Inclusión Financiera, S.A. de C.V., S.O.F.O.M., E.R., Grupo Financiero Santander México | Mexico | 0.00% | 99.98% | | 100.00% | 100.00% | Finance company | 8 | 2 | 9 | | Santander Insurance Agency, U.S., LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Insurance mediation | 1 | 0 | 1 | | Santander Insurance Services UK Limited | United Kingdom | 100.00% | 0.00% | | 100.00% | 100.00% | Wealth management | 827 | (588) | 543 | | Santander Insurance, S.L. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 2,433 | 478 | 2,440 | | Santander Intermediación Correduría de Seguros, S.A. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Insurance mediation | 25 | 5 | 18 | | Santander International Products, Plc. (l) | Ireland | 99.99% | 0.01% | | 100.00% | 100.00% | Finance company | 1 | 0 | 0 | | Santander International Wealth Management México, S. de R.L. de C.V. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Advisory services | 3 | (2) | 2 | | Santander International Wealth Solutions LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 0 | 0 | 0 | | Santander Inversiones S.A. | Chile | 5.12% | 94.88% | | 100.00% | 100.00% | Holding company | 1,574 | 279 | 1,051 | | Santander Investment Chile Limitada | Chile | 16.12% | 83.88% | | 100.00% | 100.00% | Finance company | 305 | 11 | 308 | | Santander Investment, S.A. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Banking | 1,316 | 429 | 245 | | Santander Investments GP 1 S.à.r.l. | Luxembourg | 0.00% | 100.00% | | 100.00% | 100.00% | Fund management company | 1 | 0 | 1 | | Santander Inwestycje Sp. z o.o. | Poland | 0.00% | 58.70% | | 100.00% | 100.00% | Securities company | 0 | 0 | 0 | | Santander ISA Managers Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Management of funds and portfolios | 45 | 6 | 6 | | Santander Lease, S.A., E.F.C. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Leasing | 56 | 3 | 51 | | Santander Leasing AB | Sweden | 0.00% | 100.00% | | 100.00% | 100.00% | Leasing and renting | 13 | 2 | 22 | | Santander Leasing B.V. | Netherlands | 0.00% | 100.00% | | 100.00% | 100.00% | Renting | 13 | 0 | 21 | | Santander Leasing S.A. | Poland | 0.00% | 58.70% | | 100.00% | 100.00% | Leasing | 210 | 13 | 35 | | Santander Leasing S.A. Arrendamento Mercantil | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Leasing | 1,458 | 129 | 1,426 | | Santander Leasing, LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Leasing | (2) | (10) | 0 | | Santander Lending Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Mortgage credit company | 278 | 13 | 291 | | Santander Mediación Operador de Banca-Seguros Vinculado, S.A. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Insurance mediation | 52 | 1 | 3 | | Santander Merchant S.A. | Argentine | 5.10% | 94.90% | | 100.00% | 100.00% | Finance company | 2 | 1 | 2 | | Santander Mortgage Asset Depositor LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 0 | 0 | 0 | | Santander Mortgage Asset Receivable Trust 2025-CES1 | United States | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Santander Mortgage Asset Receivable Trust 2025-NQM1 | United States | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Santander Mortgage Asset Receivable Trust 2025-NQM2 | United States | — | (b) | | — | — | Securitization | 0 | 0 | 0 | Annual report 2025882 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Santander Mortgage Asset Receivable Trust 2025-NQM3 | United States | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Santander Mortgage Asset Receivable Trust 2025-NQM4 | United States | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Santander Mortgage Asset Receivable Trust 2025-NQM5 | United States | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Santander Mortgage Asset Receivable Trust 2025-NQM6 | United States | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Santander Mortgage Asset Receivable Trust 2026-NQM1 | United States | — | (b) | | — | — | Inactive | 0 | 0 | 0 | | Santander Mortgage Holdings Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | (2) | 2 | 0 | | Santander New Business, S.A. | Spain | 99.00% | 1.00% | | 100.00% | 100.00% | Trade intermediary | 3 | 0 | 2 | | Santander Paraty Qif PLC | Ireland | 0.00% | 89.86% | | 100.00% | 100.00% | Investment company | 421 | 110 | 478 | | Santander Pensiones, S.A., E.G.F.P. | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Pension fund management company | 57 | 17 | 152 | | Santander Prime Auto Issuance Notes 2018-A Designated Activity Company (j) | Ireland | — | (b) | | — | — | Inactive | 0 | 0 | 0 | | Santander Prime Auto Issuance Notes 2018-B Designated Activity Company (j) | Ireland | — | (b) | | — | — | Inactive | 0 | 0 | 0 | | Santander Prime Auto Issuance Notes 2018-C Designated Activity Company (j) | Ireland | — | (b) | | — | — | Inactive | 0 | 0 | 0 | | Santander Prime Auto Issuance Notes 2018-D Designated Activity Company (j) | Ireland | — | (b) | | — | — | Inactive | 0 | 0 | 0 | | Santander Prime Auto Issuance Notes 2018-E Designated Activity Company (j) | Ireland | — | (b) | | — | — | Inactive | 0 | 0 | 0 | | Santander Private Banking S.p.A. in Liquidazione (j) | Italy | 100.00% | 0.00% | | 100.00% | 100.00% | Finance company | 14 | 0 | 8 | | Santander Private Banking UK Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 296 | 174 | 399 | | Santander Private Real Estate Advisory, S.A. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Real estate | 20 | 6 | 26 | | Santander Real Estate Debt 1 sub-fund | Luxembourg | 100.00% | 0.00% | | 100.00% | 100.00% | Investment fund | 103 | 6 | 100 | | Santander Real Estate Equity I, F.C.R. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Venture capital fund | 19 | 0 | 19 | | Santander Real Estate, S.A. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Inactive | 1 | 0 | 1 | | Santander Retail Auto Lease Funding LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 0 | 0 | 0 | | Santander RMBS 6, Fondo de Titulización | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Santander S.A. Sociedad Securitizadora | Chile | 0.00% | 67.25% | | 100.00% | 100.00% | Fund management company | 1 | 0 | 1 | | Santander SBAC II Renda Fixa Curto Prazo - Classe de Investimento em Cotas de Fundo de Investimento Financeiro Responsabilidade Limitada | Brazil | 0.00% | 89.86% | | 100.00% | — | Investment fund | 1,750 | 242 | 1,770 | | Santander Secretariat Services Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Santander Securities LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Securities company | 25 | 6 | 31 | | Santander Seguros y Reaseguros, Compañía Aseguradora, S.A. | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Insurance | 676 | 164 | 914 | | Santander Services Solutions, S.L. | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Payment services | 15 | (2) | 14 | Annual report 2025883 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Santander Servicios Corporativos, S.A. de C.V. | Mexico | 0.00% | 99.98% | | 100.00% | 100.00% | Services | 14 | 0 | 15 | | Santander Servicos Digitais Brasil Ltda. | Brazil | 0.00% | 100.00% | | 100.00% | — | IT services | 23 | 2 | 23 | | Santander Sociedade de Crédito, Financiamento e Investimento S.A. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Finance company | 289 | 441 | 655 | | Santander Technology USA, LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | IT services | 47 | 0 | 47 | | Santander Tecnología Argentina S.A. | Argentine | 0.00% | 99.83% | | 100.00% | 100.00% | IT services | 7 | 6 | 10 | | Santander Tecnología México, S.A. de C.V. | Mexico | 0.00% | 99.98% | | 100.00% | 100.00% | IT services | 52 | 0 | 52 | | Santander Totta Seguros, Companhia de Seguros de Vida, S.A. | Portugal | 0.00% | 100.00% | | 100.00% | 100.00% | Insurance | 99 | 27 | 246 | | Santander Towarzystwo Funduszy Inwestycyjnych S.A. | Poland | 50.00% | 29.35% | | 100.00% | 100.00% | Fund management company | 4 | 33 | 172 | | Santander Trade Services Limited | Hong-Kong | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 24 | 1 | 16 | | Santander Trust S.A. | Argentine | 0.00% | 100.00% | | 100.00% | 100.00% | Services | 0 | 0 | 0 | | Santander UK Group Holdings plc | United Kingdom | 77.67% | 22.33% | | 100.00% | 100.00% | Holding company | 15,277 | 192 | 19,046 | | Santander UK Investments | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 114 | (2) | 114 | | Santander UK Operations Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 7 | 0 | 0 | | Santander UK plc | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Banking | 12,746 | 2,167 | 15,039 | | Santander UK Technology Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | IT services | 25 | 0 | 6 | | Santander US Capital Markets LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Securities investment | 904 | 53 | 957 | | Santander Valores S.A. | Argentine | 5.10% | 94.73% | | 100.00% | 100.00% | Securities company | 30 | 11 | 42 | | Santusa Holding, S.L. | Spain | 69.76% | 30.24% | | 100.00% | 100.00% | Holding company | 10,589 | 495 | 6,525 | | SBNA Auto Lease Funding LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | (58) | (87) | 0 | | SBNA Auto Lease Trust 2023-A | United States | — | (b) | | — | — | Securitization | (31) | (23) | 0 | | SBNA Auto Lease Trust 2024-A | United States | — | (b) | | — | — | Securitization | (18) | (26) | 0 | | SBNA Auto Lease Trust 2024-B | United States | — | (b) | | — | — | Securitization | (12) | (30) | 0 | | SBNA Auto Lease Trust 2024-C | United States | — | (b) | | — | — | Securitization | 4 | (8) | 0 | | SBNA Auto Lease Trust 2025-A | United States | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SBNA Auto Lease Trust 2025-B | United States | — | (b) | | — | — | Inactive | 0 | 0 | 0 | | SBNA Auto Receivables Funding LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 2 | 3 | 4 | | SBNA Auto Receivables Grantor Trust 2025-SF1 | United States | — | (b) | | — | — | Inactive | 0 | 0 | 0 | | SBNA Auto Receivables Trust 2025-SF1 | United States | — | (b) | | — | — | Inactive | 0 | 0 | 0 | | SBNA Investor LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 795 | 119 | 914 | | SC Austria Auto Finance 2020-1 Designated Activity Company | Ireland | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SC Austria Consumer Loan 2021 Designated Activity Company | Ireland | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SC Austria S.à r.l. | Luxembourg | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SC Austria S.à r.l., Compartment Consumer 2025-1 | Luxembourg | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SC Canada Asset Securitization Trust | Canada | — | (b) | | — | — | Securitization | 2 | 4 | 0 | | SC Germany Auto 2019-1 UG (haftungsbeschränkt) (j) | Germany | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SC Germany S.A. | Luxembourg | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SC Germany S.A., Compartment Consumer 2020-1 | Luxembourg | — | (b) | | — | — | Securitization | 0 | 0 | 0 | Annual report 2025884 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | SC Germany S.A., Compartment Consumer 2021-1 | Luxembourg | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SC Germany S.A., Compartment Consumer 2022-1 | Luxembourg | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SC Germany S.A., Compartment Consumer 2023-1 | Luxembourg | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SC Germany S.A., Compartment Consumer 2024-1 | Luxembourg | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SC Germany S.A., Compartment Consumer 2024-2 | Luxembourg | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SC Germany S.A., Compartment Consumer 2025-1 | Luxembourg | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SC Germany S.A., Compartment Consumer 2025-2 | Luxembourg | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SC Germany S.A., Compartment Consumer Private 2023-1 | Luxembourg | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SC Germany S.A., Compartment Leasing 2023-1 | Luxembourg | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SC Germany S.A., Compartment Leasing 2025-1 | Luxembourg | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SC Germany S.A., Compartment Mobility 2020-1 | Luxembourg | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SC Mobility AB | Sweden | 0.00% | 100.00% | | 100.00% | 100.00% | Renting | 0 | 0 | 0 | | SC Mobility AS | Norway | 0.00% | 100.00% | | 100.00% | 100.00% | Renting | 32 | 0 | 33 | | SC Nordics S.à r.l. | Luxembourg | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SC Nordics S.à r.l. , Compartment Rahoituspalvelut 2025 | Luxembourg | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SC Poland Consumer 23-1 Designated Activity Company | Ireland | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SCF Ajoneuvohallinto IX Limited (j) | Ireland | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SCF Ajoneuvohallinto X Limited | Ireland | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SCF Ajoneuvohallinto XI Limited | Ireland | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SCF Ajoneuvohallinto XII Limited | Ireland | — | (b) | — | — | — | Securitization | 0 | 0 | 0 | | SCF Ajoneuvohallinto XIII Limited | Ireland | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SCF Eastside Locks GP Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Real estate management | 0 | 0 | 0 | | SCF Rahoituspalvelut IX DAC (j) | Ireland | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SCF Rahoituspalvelut X DAC | Ireland | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SCF Rahoituspalvelut XI Designated Activity Company | Ireland | — | (b) | | — | — | Securitization | (15) | 0 | 0 | | SCF Rahoituspalvelut XII DAC | Ireland | — | (b) | | — | — | Securitization | (1) | 0 | 0 | | SCF Rahoituspalvelut XIII DAC | Ireland | — | (b) | | — | — | Securitization | 3 | 0 | 0 | | SCM Poland Auto 2019-1 DAC | Ireland | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SDMX Superdigital, S.A. de C.V., Institución de Fondos de Pago Electrónico | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Payment platform | 1 | (1) | 0 | | Secucor Finance 2021-1, DAC (j) | Ireland | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Secucor Finance 2025-1 Designated Activity Company | Ireland | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Services and Promotions Delaware Corporation | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 125 | 0 | 198 | | Services and Promotions Miami LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Real estate | 126 | 0 | 126 | | Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 38 | 0 | 40 | | Servicios Inmobiliarios Residencial en Venta JV2, S.L. | Spain | 0.00% | 27.57% | | 27.57% | 90.00% | Real estate | 10 | 0 | 3 | | Sheppards Moneybrokers Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Shiloh III Wind Project, LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Renewable energies | 327 | 5 | 333 | Annual report 2025885 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Silk Finance No. 5 | Portugal | — | (b) | | — | — | Securitization | 25 | (5) | 0 | | Silk Finance No. 6 | Portugal | — | (b) | | — | — | Securitization | 0 | 8 | 0 | | Sociedad Integral de Valoraciones Automatizadas, S.A. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Appraisals | 2 | 0 | 1 | | Sociedad Operadora de Tarjetas de Pago Santander Getnet Chile S.A. | Chile | 0.00% | 67.13% | | 100.00% | 100.00% | Payments and collection services | 1 | 47 | 32 | | Socur S.A. (f) | Uruguay | 100.00% | 0.00% | | 100.00% | 100.00% | Finance company | 69 | 19 | 58 | | Solution 4Fleet Consultoria Empresarial S.A. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Vehicle rental | 1 | 0 | 1 | | Sovereign Community Development Company | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 42 | 1 | 43 | | Sovereign Delaware Investment Corporation | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 146 | 5 | 151 | | Sovereign Lease Holdings, LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Financial services | 228 | 5 | 233 | | Sovereign REIT Holdings, Inc. | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 8,060 | 268 | 8,328 | | SPIRE SA Compartment 2025-148 | Luxembourg | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | SSA Swiss Advisors AG | Switzerland | 0.00% | 100.00% | | 100.00% | 100.00% | Wealth management | 2 | 0 | 4 | | Stellantis Consumer Financial Services Polska Sp. z o.o. | Poland | 0.00% | 50.00% | | 100.00% | 100.00% | Finance company | 5 | 2 | 1 | | Stellantis Financial Services Belux SA | Belgium | 0.00% | 50.00% | | 100.00% | 100.00% | Finance company | 101 | 11 | 57 | | Stellantis Financial Services España, E.F.C., S.A. | Spain | 0.00% | 50.00% | | 50.00% | 50.00% | Finance company | 401 | (21) | 190 | | Stellantis Financial Services Italia S.p.A. | Italy | 0.00% | 50.00% | | 50.00% | 50.00% | Banking | 807 | 112 | 293 | | Stellantis Financial Services Nederland B.V. | Netherlands | 0.00% | 50.00% | | 100.00% | 100.00% | Finance company | 80 | 15 | 39 | | Stellantis Financial Services Polska Sp. z o.o. | Poland | 0.00% | 50.00% | | 50.00% | 50.00% | Finance company | 74 | 13 | 17 | | Stellantis Renting Italia S.p.A. | Italy | 0.00% | 50.00% | | 100.00% | 100.00% | Renting | 11 | 5 | 3 | | Sterrebeeck B.V. | Netherlands | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 6,373 | 515 | 10,860 | | Suleyado 2003, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Securities investment | 34 | 0 | 31 | | Superdigital Holding Company, S.L. | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 28 | (4) | 24 | | Superdigital Logística S.A. | Brazil | 0.00% | 100.00% | | 100.00% | 100.00% | Payment services | 6 | (1) | 5 | | Suzuki Servicios Financieros, S.L. | Spain | 0.00% | 51.00% | | 51.00% | 51.00% | Intermediation | 16 | 2 | 8 | | Swesant SA | Switzerland | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 323 | (3) | 0 | | Tabasco Energía España, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 7 | 0 | 7 | | Taxos Luz, S.L. Unipersonal | Spain | 0.00% | 70.00% | | 100.00% | 100.00% | Renewable energies | 3 | 0 | 11 | | Teatinos Siglo XXI Inversiones S.A. | Chile | 50.00% | 50.00% | | 100.00% | 100.00% | Holding company | 1,521 | 333 | 2,167 | | Terras Fundo de Investimento nas Cadeias Produtivas do Agronegocio - Fiagro - Resp Limitada | Brazil | 0.00% | 89.86% | | 100.00% | — | Investment fund | 2 | 0 | 1 | | The Best Specialty Coffee, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Restaurant services | 3 | 0 | 3 | | TIMFin S.p.A. | Italy | 0.00% | 51.00% | | 51.00% | 51.00% | Finance company | 63 | 4 | 38 | | Titularizadora Colombiana S.A. - Universalidad TIV V9 | Colombia | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Tonopah Solar I, LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 5 | 0 | 5 | Annual report 2025886 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Tools Soluções e Serviços Compartilhados Ltda. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Services | 31 | 4 | 31 | | Tornquist Asesores de Seguros S.A. (j) | Argentine | 0.00% | 99.99% | | 99.99% | 99.99% | Inactive | 0 | 0 | 0 | | Toro Corretora de Títulos e Valores Mobiliários S.A. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Securities company | 62 | (1) | 55 | | Toro Investimentos S.A. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Securities company | 43 | (2) | 36 | | Totta (Ireland), PLC | Ireland | 0.00% | 99.87% | | 100.00% | 100.00% | Finance company | 451 | 11 | 450 | | Totta Urbe - Empresa de Administração e Construções, S.A. | Portugal | 0.00% | 99.87% | | 100.00% | 100.00% | Real estate | 88 | 1 | 89 | | Trainera Venture Finance I, F.C.R.- PYME | Spain | 99.00% | 0.00% | | 99.00% | 99.00% | Venture capital fund | 21 | 2 | 20 | | Trans Skills Employment Services - Sole Proprietorship LLC | Arab United Emirates | 0.00% | 66.43% | | 100.00% | 100.00% | Human resources services | 0 | 1 | 2 | | Trans Skills Employment Services Malaysia SDN. BHD. | Malaysia | 0.00% | 66.43% | | 100.00% | — | Services | 0 | 0 | 0 | | Trans Skills Employment Services Vietnam Company Limited | Vietnam | 0.00% | 66.43% | | 100.00% | — | Consulting services | 0 | 0 | 0 | | Trans Skills General Supplies Egypt LLC | Egypt | 0.00% | 66.43% | | 100.00% | — | Consulting services | 0 | 0 | 0 | | Trans Skills Information Technology LLC | Saudi Arabia | 0.00% | 66.43% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Trans Skills Investment in Commercial Enterprises & Management Co. LLC | Arab United Emirates | 0.00% | 66.43% | | 100.00% | 100.00% | Holding company | 1 | 0 | 7 | | Trans Skills Services SPC | Oman | 0.00% | 66.43% | | 100.00% | — | Consulting | 0 | 0 | 0 | | Trans Skills South Africa (Pty) Limited | Republic of South Africa | 0.00% | 66.43% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Trans Skills Technology Services LLC | Arab United Emirates | 0.00% | 66.43% | | 100.00% | 100.00% | IT services | 0 | (3) | 0 | | Transolver Finance EFC, S.A. | Spain | 0.00% | 51.00% | | 51.00% | 51.00% | Leasing | 76 | 6 | 17 | | Transskills Employer Services Private Limited | India | 0.00% | 66.43% | | 100.00% | 100.00% | Consulting services | 0 | 0 | 0 | | Tresmares Capital Corporate S.L. | Spain | 89.90% | 0.00% | | 89.90% | — | Holding company | 2 | 2 | 21 | | Tresmares Capital Deutschland GmbH | Germany | 0.00% | 89.90% | | 100.00% | — | Finance company | 0 | 0 | 0 | | Tresmares Capital UK Limited | United Kingdom | 0.00% | 89.90% | | 100.00% | — | Fund management company | 1 | 1 | 1 | | Tresmares Direct Lending, S.G.E.I.C, S.A. | Spain | 0.00% | 89.90% | | 100.00% | — | Fund management company | 3 | 3 | 2 | | Tresmares Growth Fund II, S.C.R., S.A. | Spain | 40.00% | 0.00% | 40.00% | 40.00% | 40.00% | Holding company | 72 | 6 | 39 | | Tresmares Growth Fund III, S.C.R., S.A. | Spain | 40.00% | 0.00% | 40.00% | 40.00% | 40.00% | Holding company | 55 | 4 | 30 | | Tresmares Growth Fund Santander, S.C.R., S.A. | Spain | 100.00% | 0.00% | 100.00% | 100.00% | 100.00% | Holding company | 139 | (3) | 131 | | Tresmares Private Equity, S.G.E.I.C, S.A. | Spain | 0.00% | 89.90% | 100.00% | 100.00% | — | Fund management company | 1 | 4 | 1 | | Tresmares Santander Direct Lending, SICC, S.A. | Spain | 99.67% | 0.00% | 99.67% | 99.67% | 99.67% | Fund management company | 1,419 | 69 | 1,410 | | TS HR & Payroll Services Morocco SARL AU | Morocco | 0.00% | 66.43% | 100.00% | 100.00% | — | Consulting services | 0 | 0 | 0 | | TVG-Trappgroup Versicherungsvermittlungs-GmbH (d) | Germany | 0.00% | 90.01% | 100.00% | 100.00% | 100.00% | Insurance brokerage | 0 | 0 | 2 | | Universia Brasil S.A. | Brazil | 0.00% | 100.00% | 100.00% | 100.00% | 100.00% | Internet | 0 | 0 | 0 | | Universia Chile S.A. | Chile | 0.00% | 86.84% | 86.84% | 86.84% | 86.84% | Internet | 1 | 0 | 0 | | Universia Colombia S.A.S. | Colombia | 0.00% | 100.00% | 100.00% | 100.00% | 100.00% | Internet | 0 | 0 | 0 | Annual report 2025887 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Universia España Red de Universidades, S.A. | Spain | 0.00% | 89.43% | 89.43% | 89.43% | 89.43% | Internet | 3 | 0 | 2 | | Universia Holding, S.L. | Spain | 100.00% | 0.00% | 100.00% | 100.00% | 100.00% | Holding company | 18 | 0 | 18 | | Universia México, S.A. de C.V. | Mexico | 0.00% | 100.00% | 100.00% | 100.00% | 100.00% | Internet | 1 | 0 | 1 | | Universia Perú, S.A. | Peru | 0.00% | 99.73% | 99.73% | 99.73% | 99.64% | Internet | 0 | 0 | 0 | | Universia Uruguay, S.A. | Uruguay | 0.00% | 100.00% | 100.00% | 100.00% | 100.00% | Internet | 0 | 0 | 0 | | Uro Property Holdings, S.A. (e) | Spain | — | — | 0.00% | — | 99.99% | Real estate investment | — | — | — | | VERT-11 Companhia Securitizadora de Créditos Financeiros | Brazil | — | (b) | — | — | — | Securitization | 0 | 0 | 0 | | Wallcesa, S.A. | Spain | 100.00% | 0.00% | 100.00% | 100.00% | 100.00% | Financial services | (914) | 17 | 0 | | WIM Servicios Corporativos, S.A. de C.V. | Mexico | 0.00% | 100.00% | 100.00% | 100.00% | 100.00% | Advisory services | 1 | 0 | 0 | | WTW Shipping Designated Activity Company | Ireland | 100.00% | 0.00% | 100.00% | 100.00% | 100.00% | Leasing | 20 | 0 | 9 | a. Amount according to the provisional books of each company as of the date of publication of these annexes, generally referring to 31 December 2025 without considering, where appropriate, interim dividends that have been made during the year. In the book value (net provision cost), the percentage of ownership of the Group has been applied to the figure of each of the holding companies, without considering the impairment of goodwill made in the consolidation process. The data for foreign companies are converted into euros at the exchange rate at the end of the year. b. Companies over which effective control is maintained. c. Data as at 31 December 2024, latest available accounts. d. Data as at 31 March 2025, latest accounts available. e. Accounting merged company, Pending registration. f. Data as at 30 September 2025, last accounts available. g. Data as at 30 April 2025, last accounts available. h. Data as at 31 July 2025, last accounts available. i. Companies in liquidation. Pending registration. j. Company in liquidation as at 31 December 2025. k. Pursuant to Article 3 of Royal Decree 1159/ 2010, of 17 September, approving the rules for the preparation of consolidated annual accounts, in order to determine the voting rights, voting rights held directly by the parent company have been added to those held by companies controlled by the parent company or by other persons acting in their own name but on behalf of a Group company. For these purposes, the number of votes corresponding to the parent company, in relation to the companies indirectly dependent on it, is that corresponding to the dependent company that directly participates in the share capital of the latter. l. Company resident for tax purposes in Spain. m. Data as at 30 June 2021, latest available accounts. n. Company resident for tax purposes in the United Kingdom. o. Data as at 28 February 2025, latest available accounts. (1) Companies issuing preference shares are listed in Annex III, together with other relevant information. Annual report 2025888 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### Appendix II | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | Societies of which Grupo Santander owns more than 5% (g) , entities associated with Grupo Santander and jointly controlled entities | | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (f) | | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Type of company | Asset | Capital + reserves | Net results | | Administrador Financiero de Transantiago S.A. | Chile | 0.00% | 13.43% | | 20.00% | 20.00% | Payments and collection services | Associated | 59 | 8 | 2 | | Adprotel Strand, S.L. (consolidado) | Spain | 0.00% | 38.20% | | 38.20% | 38.20% | Real estate development | Associated | 693 | 622 | 26 | | Aegon Santander Portugal Não Vida - Companhia de Seguros, S.A. | Portugal | 0.00% | 49.00% | | 49.00% | 49.00% | Insurance | Joint ventures | 84 | 9 | 21 | | Aegon Santander Portugal Vida - Companhia de Seguros Vida, S.A. | Portugal | 0.00% | 49.00% | | 49.00% | 49.00% | Insurance | Joint ventures | 153 | 22 | 19 | | Aeroplan - Sociedade Construtora de Aeroportos, Lda. (e) | Portugal | 0.00% | 19.97% | | 20.00% | 20.00% | Inactive | — | 0 | 0 | 0 | | Agri Tech Investments Argentina S.A.U. | Argentine | 0.00% | 50.00% | | 50.00% | — | Financial services | — | 10 | 6 | 1 | | Aguas de Fuensanta, S.A. (e) (k) | Spain | 36.78% | 0.00% | | 36.78% | 36.78% | Food | — | — | — | — | | AHLC - Promoção Imobiliária, Lda. | Portugal | 0.00% | 35.00% | | 35.00% | — | Real estate development | Joint ventures | 0 | 0 | 0 | | Alcoaxarquía, S.L. | Spain | 0.00% | 16.00% | | 40.00% | — | Food | — | 25 | 6 | 2 | | Alma UK Holdings Ltd (consolidado) (b) | United Kingdom | 30.00% | 0.00% | | 30.00% | 30.00% | Holding company | Joint ventures | 3 | 2 | 4 | | Apolo Vault 1, S.L. | Spain | 0.00% | 25.00% | | 25.00% | 25.00% | Renewable energies | Joint ventures | 0 | 0 | 0 | | Aranguren Comercial de Embalaje, S.L. | Spain | 0.00% | 9.96% | | 24.90% | — | Industrial products | — | 38 | 11 | 2 | | Arneplant, S.L. | Spain | 0.00% | 11.36% | | 28.41% | — | Footwear and textiles | — | 46 | 22 | 2 | | Asesoría Informática Gallega, S.L. | Spain | 0.00% | 12.54% | | 31.34% | — | IT services | — | 4 | 0 | 2 | | Atitlan Agro I, S.C.R., S.A. (b) (n) | Spain | 42.54% | 0.00% | | 0.00% | 0.00% | Venture capital company | — | 123 | 114 | (5) | | Attijariwafa Bank Société Anonyme (consolidado) (b) | Morocco | 0.00% | 5.10% | | 5.10% | 5.10% | Banking | — | 67,801 | 4,942 | 887 | | AutoFi Inc. (b) | United States | 9.50% | 9.40% | | 4.99% | 4.99% | E-commerce | — | 19 | 19 | (7) | | Autopistas del Sol S.A. (b) | Argentine | 0.00% | 14.17% | | 14.17% | 14.17% | Highway concession | — | 232 | 191 | (54) | | Avanath Affordable Housing IV LLC (b) | United States | 0.00% | 7.27% | | 7.27% | 7.27% | Investment company | — | 411 | 405 | (35) | | Avanzare Innovación Tecnológica, S.L. | Spain | 0.00% | 12.66% | | 31.64% | — | Technology | — | 43 | 19 | 5 | | Axle 2023-1 Ltd | United Kingdom | 0.00% | (h) | | — | — | Securitization | Joint ventures | 689 | 2 | (5) | | Banco RCI Brasil S.A. | Brazil | 0.00% | 35.85% | | 39.89% | 39.89% | Banking | Joint ventures | 2,231 | 141 | 54 | | Banco S3 Caceis México, S.A., Institución de Banca Múltiple | Mexico | 0.00% | 50.00% | | 50.00% | 50.00% | Banking | Joint ventures | 245 | 112 | 15 | | Bank of Beijing Consumer Finance Company | China | 0.00% | 20.00% | | 20.00% | 20.00% | Finance company | Associated | 1,904 | 156 | 21 | | Bank of Shanghai Co., Ltd. (consolidado) (b) | China | 6.54% | 0.00% | | 6.54% | 6.54% | Banking | — | 392,042 | 28,022 | 2,863 | | Biomas – Serviços Ambientais, Restauração e Carbono S.A. | Brazil | 0.00% | 14.98% | | 16.67% | 16.67% | Consulting services | Associated | 7 | 9 | (6) | | Bizum, S.L. | Spain | 20.92% | 0.00% | | 20.92% | 20.92% | Payment services | Associated | 29 | 11 | 2 | | Campo Grande Empreendimentos Ltda. (k) (e) | Brazil | 0.00% | 22.75% | | 25.32% | 25.32% | Inactive | — | 0 | 0 | 0 | | CaptureNow Limited (q) | United Kingdom | 0.00% | 22.22% | | 22.22% | — | Software | — | 1 | 0 | 0 | | CCPT - ComprarCasa, Rede Serviços Imobiliários, S.A. | Portugal | 0.00% | 49.98% | | 49.98% | 49.98% | Real estate services | Joint ventures | 0 | 0 | 0 | | Centro de Compensación Automatizado S.A. | Chile | 0.00% | 22.38% | | 33.33% | 33.33% | Payments and collection services | Associated | 21 | 12 | 6 | Annual report 2025889 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | Societies of which Grupo Santander owns more than 5% (g) , entities associated with Grupo Santander and jointly controlled entities | | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (f) | | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Type of company | Asset | Capital + reserves | Net results | | Centro para el Desarrollo, Investigación y Aplicación de Nuevas Tecnologías, S.A. (l) | Spain | 0.00% | 49.00% | | 49.00% | 49.00% | Technology | Associated | 3 | 3 | 0 | | Cicrosa Hidraúlica, S.L. | Spain | 0.00% | 13.20% | | 33.00% | — | Industrial supplies | — | 19 | 12 | 3 | | CIP S.A. | Brazil | 0.00% | 15.74% | | 17.52% | 17.52% | Financial services | Associated | 335 | 188 | 99 | | CNP Santander Insurance Europe Designated Activity Company | Ireland | 0.00% | 49.00% | | 49.00% | 49.00% | Insurance | Associated | 1,475 | 229 | 56 | | CNP Santander Insurance Life Designated Activity Company | Ireland | 0.00% | 49.00% | | 49.00% | 49.00% | Insurance | Associated | 798 | 63 | 44 | | CNP Santander Insurance Services Ireland Limited | Ireland | 0.00% | 49.00% | | 49.00% | 49.00% | Services | Associated | 16 | 0 | 0 | | Companhia Promotora UCI | Brazil | 0.00% | 25.00% | | 25.00% | 25.00% | Financial services | Joint ventures | 0 | 0 | 0 | | Compañia Española de Financiación de Desarrollo, Cofides, S.A., SME (b) | Spain | 20.18% | 0.00% | | 20.18% | 20.17% | Finance company | — | 244 | 213 | 25 | | Compañía Española de Seguros de Crédito a la Exportación, S.A., Compañía de Seguros y Reaseguros (consolidado) (b) | Spain | 23.33% | 0.55% | | 23.88% | 23.88% | Credit insurance | — | 1,432 | 570 | 64 | | Compañía Española de Viviendas en Alquiler, S.A. (consolidado) | Spain | 24.07% | 0.00% | | 24.07% | 24.07% | Real estate | Associated | 626 | 416 | 23 | | Compañía para los Desarrollos Inmobiliarios de la Ciudad de Hispalis, S.L., en liquidación (d) (e) | Spain | 21.98% | 0.00% | | 21.98% | 21.98% | Real estate development | — | 38 | (325) | 0 | | Connecting Visions Ecosystems, S.L. | Spain | 29.96% | 0.00% | | 29.96% | 37.56% | Consulting services | Joint ventures | 2 | 1 | 0 | | Construtora Tenda S/A (b) | Brazil | 4.92% | 4.05% | | 9.43% | — | Real estate | — | 828 | 147 | 16 | | Corkfoc Cortiças, S.A. (c) | Portugal | 0.00% | 27.54% | | 27.58% | 27.58% | Cork industry | — | 3 | 20 | 0 | | CSD Central de Serviços de Registro e Depósito Aos Mercados Financeiro e de Capitais S.A. | Brazil | 0.00% | 16.12% | | 17.94% | 20.00% | Financial services | Associated | 43 | 42 | 0 | | Decus Real Estate, S.L. | Spain | 0.00% | 30.00% | | 30.00% | 30.00% | Real estate | Joint ventures | 88 | 76 | 0 | | Delos Financial Technologies, Inc. (b) | United States | 0.00% | 22.84% | | 22.84% | — | Finance company | — | 2 | 3 | (1) | | DoRes Securitisation S.r.l | Italy | — | (h) | | — | — | Securitization | Joint ventures | 0 | 0 | 0 | | Ebora 220, S.L. | Spain | 0.00% | 44.00% | | 50.00% | — | Renewable energies | Joint ventures | 2 | 2 | 0 | | Ebora Evacuación, S.L. | Spain | 0.00% | 50.00% | | 50.00% | — | Renewable energies | Joint ventures | 1 | 1 | 0 | | Elaia Agro, S.L. (b) | Spain | 49.99% | 0.00% | | 49.99% | 49.99% | Consulting services | Associated | 5 | 4 | 0 | | Ethias Lease N.V. | Belgium | 0.00% | 50.00% | | 50.00% | 50.00% | Leasing | Associated | 76 | 9 | (7) | | Euro Automatic Cash Entidad de Pago, S.L. | Spain | 50.00% | 0.00% | | 50.00% | 50.00% | Payment services | Associated | 42 | 21 | 1 | | European Hospitality Opportunities S.à r.l. (b) | Luxembourg | 0.00% | 49.00% | | 49.00% | 49.00% | Holding company | Joint ventures | 55 | 16 | 0 | | Evacuación Liquesun, S.L. | Spain | 0.00% | 35.00% | | 50.00% | 50.00% | Electricity production | Joint ventures | 1 | 1 | 0 | | Evolve SPV S.r.l. | Italy | — | (h) | | — | — | Securitization | Joint ventures | 55 | 0 | 0 | | Exam Papers Plus Ltd | United Kingdom | — | 25.00% | | 25.00% | — | Commerce | Associated | 6 | 3 | 2 | | Federal Reserve Bank of Boston (b) | United States | — | 21.38% | | 21.38% | 21.09% | Banking | — | 186,079 | 1,496 | 83 | | Fondo de Titulización de Activos UCI 14 | Spain | — | (h) | | — | — | Securitization | Joint ventures | 163 | 0 | 0 | | Fondo de Titulización de Activos UCI 15 | Spain | — | (h) | | — | — | Securitization | Joint ventures | 207 | 0 | 0 | Annual report 2025890 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | Societies of which Grupo Santander owns more than 5% (g) , entities associated with Grupo Santander and jointly controlled entities | | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (f) | | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Type of company | Asset | Capital + reserves | Net results | | Fondo de Titulización de Activos UCI 16 | Spain | — | (h) | | — | — | Securitization | Joint ventures | 288 | 0 | 0 | | Fondo de Titulización de Activos UCI 17 | Spain | — | (h) | | — | — | Securitization | Joint ventures | 245 | 0 | 0 | | Fondo de Titulización, RMBS Green Prado XI | Spain | — | (h) | | — | — | Securitization | Joint ventures | 372 | 0 | 0 | | Fondo de Titulización, RMBS Prado IX | Spain | — | (h) | | — | — | Securitization | Joint ventures | 341 | 0 | 0 | | Fondo de Titulización, RMBS Prado VIII | Spain | — | (h) | | — | — | Securitization | Joint ventures | 291 | 0 | 0 | | Fondo de Titulización, RMBS Prado X | Spain | — | (h) | | — | — | Securitization | Joint ventures | 392 | 0 | 0 | | Forest Power Aranda, S.L. Unipersonal | Spain | 0.00% | 55.00% | | 55.00% | 55.00% | Renewable energies | Joint ventures | 2 | 1 | 0 | | Forest Power Cantabria, S.L. Unipersonal | Spain | 0.00% | 55.00% | | 55.00% | — | Electricity production | Joint ventures | 0 | 0 | 0 | | Forest Power Delta, S.L. Unipersonal | Spain | 0.00% | 55.00% | | 55.00% | — | Gas production | Joint ventures | 0 | 0 | 0 | | Forest Power Epsilon, S.L. Unipersonal | Spain | 0.00% | 55.00% | | 55.00% | — | Chemical products production | Joint ventures | 0 | 0 | 0 | | Forest Power Gamma, S.L. Unipersonal | Spain | 0.00% | 55.00% | | 55.00% | — | Chemical products production | Joint ventures | 0 | 0 | 0 | | Forest Power Kappa, S.L. Unipersonal | Spain | 0.00% | 55.00% | | 55.00% | — | Gas production | Joint ventures | 0 | 0 | 0 | | Forest Power Lambda, S.L. Unipersonal | Spain | 0.00% | 55.00% | | 55.00% | — | Chemical products production | Joint ventures | 0 | 0 | 0 | | Forest Power Omicron, S.L. Unipersonal | Spain | 0.00% | 55.00% | | 55.00% | — | Chemical products production | Joint ventures | 0 | 0 | 0 | | Forest Power Zeta, S.L. Unipersonal | Spain | 0.00% | 55.00% | | 55.00% | — | Chemical products production | Joint ventures | 0 | 0 | 0 | | Forest Power, S.L. | Spain | 0.00% | 55.00% | | 55.00% | 55.00% | Renewable energies | Joint ventures | 1 | 1 | 0 | | Forgepoint Capital International Management Limited | United Kingdom | 50.00% | 0.00% | | 50.00% | 50.00% | Consulting services | Joint ventures | 1 | 1 | (1) | | Fortune Auto Finance Co., Ltd | China | 0.00% | 50.00% | | 50.00% | 50.00% | Finance company | Joint ventures | 2,100 | 443 | 20 | | FrauDfense, S.L. | Spain | 33.33% | 0.00% | | 33.33% | 33.33% | IT services | Joint ventures | 3 | 5 | (2) | | Fremman limited (consolidado) (b) | United Kingdom | 32.99% | 0.00% | | 4.99% | 4.99% | Consulting services | Associated | 10 | 6 | 1 | | Fundo de Investimento em Direitos Creditórios Multisegmentos NPL Ipanema X Responsabilidade Limitada | Brazil | 0.00% | 44.93% | | 50.00% | — | Investment fund | Joint ventures | 20 | 20 | 1 | | Gestamp Real Estate Assets 1, S.L. (k) | Spain | 0.00% | 43.89% | | 43.89% | — | Real estate management | — | — | — | — | | Gestamp Real Estate Bizkaia, S.L. (k) | Spain | 0.00% | 24.92% | | 24.92% | — | Real estate management | — | — | — | — | | Gestamp Real Estate Investment 2, S.L. (k) | Spain | 0.00% | 37.41% | | 37.41% | — | Real estate management | — | — | — | — | | Gestamp Real Estate Management 3, S.L. (k) | Spain | 0.00% | 36.19% | | 36.19% | — | Real estate management | — | — | — | — | | Gestora de Inteligência de Crédito S.A. | Brazil | 0.00% | 13.98% | | 16.00% | 16.00% | Collection services | Associated | 190 | 52 | (4) | | Gire S.A. | Argentine | 0.00% | 58.23% | | 58.33% | 58.33% | Payments and collection services | Associated | 122 | 77 | (4) | | Glenrowan Solar Holdings Pty Ltd | Australia | 49.00% | 0.00% | | 49.00% | 49.00% | Holding company | Joint ventures | 139 | 52 | (3) | Annual report 2025891 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | Societies of which Grupo Santander owns more than 5% (g) , entities associated with Grupo Santander and jointly controlled entities | | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (f) | | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Type of company | Asset | Capital + reserves | Net results | | Global Esmirna, S.L. (en liquidación) (e) (l) | Spain | 0.00% | 15.00% | | 37.51% | — | Services | — | 26 | (1) | (16) | | HCUK Auto Funding 2017-2 Ltd | United Kingdom | — | (h) | | — | — | Securitization | Joint ventures | 459 | (2) | 0 | | HCUK Auto Funding 2022-1 Limited (m) | United Kingdom | — | (h) | | — | — | Securitization | Joint ventures | 917 | 2 | (4) | | HCUK Auto Funding 2025-1 Ltd | United Kingdom | — | (h) | | — | — | Securitization | Joint ventures | 232 | 0 | 0 | | Healthy Neighborhoods Equity Fund I LP (b) | United States | 0.00% | 22.37% | | 22.37% | 22.37% | Real estate | — | 8 | 8 | 0 | | Hyundai Capital UK Limited | United Kingdom | 0.00% | 50.01% | | 50.01% | 50.01% | Finance company | Joint ventures | 5,643 | 442 | 75 | | Hyundai Corretora de Seguros Ltda. | Brazil | 0.00% | 44.93% | | 50.00% | 50.00% | Insurance mediation | Joint ventures | 2 | 1 | 0 | | Imperial Holding S.C.A. (e) (i) | Luxembourg | 0.00% | 36.36% | | 36.36% | 36.36% | Securities investment | — | 0 | (113) | 0 | | Imperial Management S.à r.l. (b) (e) | Luxembourg | 0.00% | 40.20% | | 40.20% | 40.20% | Holding company | — | 0 | 0 | 0 | | Invensa Tradeco UK Limited | United Kingdom | 25.00% | 0.00% | | 25.00% | 4.99% | Holding company | Associated | 9 | 13 | (6) | | Inverlur Aguilas I, S.L. | Spain | 0.00% | 50.00% | | 50.00% | 50.00% | Real estate | Joint ventures | 0 | 0 | 0 | | Inverlur Aguilas II, S.L. | Spain | 0.00% | 50.00% | | 50.00% | 50.00% | Real estate | Joint ventures | 1 | 1 | 0 | | Inversiones ZS América Dos Ltda. | Chile | 0.00% | 49.00% | | 49.00% | 49.00% | Real estate and property investment | Associated | 252 | 186 | 58 | | Inversiones ZS América SpA | Chile | 0.00% | 49.00% | | 49.00% | 49.00% | Real estate and property investment | Associated | 339 | 339 | 58 | | Klar Holdings Limited (consolidado) (b) | Cayman Islands | 0.00% | 7.35% | | 7.35% | — | Holding company | — | 491 | 17 | (40) | | LB Oprent, S.A. | Spain | 40.00% | 0.00% | | 40.00% | 40.00% | Industrial machinery rental | Associated | 6 | 2 | 1 | | Logitek Software Ltd (k) | United Kingdom | 0.00% | 20.27% | | 20.27% | — | Software | Joint ventures | — | — | — | | Mapfre Santander Portugal - Companhia de Seguros, S.A. | Portugal | 0.00% | 49.99% | | 49.99% | 49.99% | Insurance | Associated | 22 | 8 | 1 | | Massachusetts Business Development Corp. (consolidado) (b) | United States | 0.00% | 21.61% | | 21.61% | 21.61% | Finance company | — | 49 | 15 | 1 | | MB Capital Fund IV, LLC (b) | United States | 0.00% | 21.51% | | 21.51% | 21.51% | Finance company | — | 5 | 5 | 1 | | Merlin Properties, SOCIMI, S.A. (consolidado) (b) | Spain | 20.08% | 4.63% | | 24.68% | 24.90% | Real estate investment | Associated | 13,459 | 7,318 | 284 | | Merlion Aviation One Designated Activity Company | Ireland | — | (p) | | — | — | Renting | — | 215 | 17 | 0 | | Metrovacesa, S.A. (consolidado) (b) | Spain | 31.94% | 17.46% | | 49.43% | 49.47% | Real estate development | Associated | 2,414 | 1,581 | 16 | | Nera Agro Holding, S.L. (b) | Spain | 50.00% | 0.00% | | 50.00% | — | Holding company | Joint ventures | 2 | 4 | (3) | | Nera Paraguay S.A. | Paraguay | 0.00% | 50.00% | | 50.00% | — | Financial services | — | 0 | 0 | 0 | | Nera Uruguay S.A. | Uruguay | 0.00% | 50.00% | | 50.00% | — | Financial services | — | 0 | 0 | 0 | | Ocyener 2008, S.L. | Spain | 0.00% | 45.00% | | 45.00% | 45.00% | Holding company | Associated | 18 | 18 | 0 | | Operadora de Activos Beta, S.A. de C.V. | Mexico | 49.99% | 0.00% | | 49.99% | 49.99% | Finance company | Associated | 0 | 0 | 0 | | Payever GmbH | Germany | 0.00% | 10.00% | | 10.00% | 10.00% | Software | Associated | 5 | 4 | 0 | | Phoenix C1 Aviation Designated Activity Company (e) | Ireland | — | (p) | | — | — | Renting | — | 0 | (17) | 17 | Annual report 2025892 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | Societies of which Grupo Santander owns more than 5% (g) , entities associated with Grupo Santander and jointly controlled entities | | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (f) | | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Type of company | Asset | Capital + reserves | Net results | | Play Digital S.A. | Argentine | 0.00% | 13.49% | | 13.52% | 14.21% | Payment platform | Associated | 31 | 6 | 1 | | Pluxee Beneficios Brasil S.A. | Brazil | 0.00% | 17.97% | | 20.00% | 20.00% | Services | Associated | 1,304 | 400 | 97 | | POLFUND - Fundusz Poręczeń Kredytowych S.A. | Poland | 0.00% | 29.35% | | 50.00% | 50.00% | Management | Associated | 34 | 24 | 1 | | Portland SPV S.r.l. | Italy | — | (h) | | — | — | Securitization | Joint ventures | 106 | 0 | 0 | | Prodesa Medioambiente, S.L. | Spain | 0.00% | 9.80% | | 24.50% | — | Agricultural projects | — | 39 | 5 | 0 | | Promontoria Manzana, S.A. (consolidado) (b) | Spain | 20.00% | 0.00% | | 20.00% | 20.00% | Holding company | Associated | 558 | 117 | (38) | | Proteos Biotech, S.L. | Spain | 0.00% | 12.00% | | 30.00% | — | Pharmaceutical | — | 17 | 7 | 2 | | Redbanc S.A. | Chile | 0.00% | 22.44% | | 33.43% | 33.43% | Services | Associated | 28 | 13 | 3 | | Redsys Servicios de Procesamiento, S.L. (consolidado) | Spain | 24.90% | 0.06% | | 24.96% | 24.96% | Cards | Associated | 134 | 63 | 10 | | Resurgence, S.L. | Spain | 0.00% | 40.00% | | 40.00% | — | Real estate development | Joint ventures | 8 | 0 | 0 | | Retama Real Estate, S.A. Unipersonal | Spain | 0.00% | 50.00% | | 50.00% | 50.00% | Real estate | Joint ventures | 14 | (55) | (2) | | Rías Redbanc S.A. | Uruguay | 0.00% | 25.00% | | 25.00% | 25.00% | Services | — | 5 | 1 | 0 | | RMBS Belém No.2 | Portugal | — | (h) | | — | — | Securitization | Joint ventures | 170 | 0 | 0 | | Roc Aviation One Designated Activity Company | Ireland | — | (p) | | — | — | Renting | — | 213 | (10) | (15) | | Roc Shipping One Designated Activity Company | Ireland | — | (p) | | — | — | Renting | — | 82 | 3 | (1) | | RP Royal Distribution, S.L. | Spain | 0.00% | 23.73% | | 23.73% | — | Food | Associated | 27 | 12 | 6 | | S3 Caceis Brasil Distribuidora de Títulos e Valores Mobiliários S.A. | Brazil | 0.00% | 50.00% | | 50.00% | 50.00% | Securities company | Joint ventures | 283 | 101 | 41 | | S3 Caceis Brasil Participações S.A. | Brazil | 0.00% | 50.00% | | 50.00% | 50.00% | Holding company | Joint ventures | 233 | 106 | 40 | | S3 CACEIS Colombia S.A. Sociedad Fiduciaria | Colombia | 0.00% | 50.00% | | 50.00% | 50.00% | Finance company | Joint ventures | 13 | 10 | 1 | | Sancus Green Investments II, S.C.R., S.A. (b) | Spain | 0.00% | 33.02% | | 33.02% | 33.02% | Venture capital company | — | 48 | 48 | 0 | | Santander Allianz Towarzystwo Ubezpieczeń na Życie S.A. | Poland | 0.00% | 28.76% | | 49.00% | 49.00% | Insurance | Associated | 240 | 32 | 45 | | Santander Allianz Towarzystwo Ubezpieczeń S.A. | Poland | 0.00% | 28.76% | | 49.00% | 49.00% | Insurance | Associated | 86 | 38 | 10 | | Santander Assurance Solutions, S.A. | Spain | 0.00% | 66.67% | | 66.67% | 66.67% | Insurance mediation | Joint ventures | 18 | 8 | 1 | | Santander Auto S.A. | Brazil | 0.00% | 44.93% | | 50.00% | 50.00% | Insurance | Associated | 107 | 6 | 11 | | Santander Caceis Latam Holding 1, S.L. | Spain | 0.00% | 50.00% | | 50.00% | 50.00% | Holding company | Joint ventures | 850 | 753 | 96 | | Santander Caceis Latam Holding 2, S.L. | Spain | 0.00% | 50.00% | | 50.00% | 50.00% | Holding company | Joint ventures | 3 | 3 | 0 | | Santander Generales Seguros y Reaseguros, S.A. | Spain | 0.00% | 49.00% | | 49.00% | 49.00% | Insurance | Joint ventures | 839 | 143 | 65 | | Santander Mapfre Hipoteca Inversa, E.F.C., S.A. | Spain | 0.00% | 50.00% | | 50.00% | 50.00% | Finance company | Joint ventures | 31 | 13 | (4) | | Santander Mapfre Seguros y Reaseguros, S.A. | Spain | 0.00% | 49.99% | | 49.99% | 49.99% | Insurance | Associated | 240 | 89 | 4 | | Santander Vida Seguros y Reaseguros, S.A. | Spain | 0.00% | 49.00% | | 49.00% | 49.00% | Insurance | Joint ventures | 1,010 | 291 | 78 | | Seaya Holdco, S.L. (consolidado) | Spain | 24.99% | 0.00% | | 24.99% | 24.99% | Holding company | Associated | 30 | 25 | 2 | | Servicios de Infraestructura de Mercado OTC S.A | Chile | 0.00% | 8.38% | | 12.48% | 12.48% | Services | Associated | 34 | 16 | 0 | | SIBS-SGPS, S.A. (consolidado) (b) | Portugal | 0.00% | 15.54% | | 16.55% | 15.56% | Management of portfolios | — | 596 | 278 | 57 | | SIG RCRS A/B MF 2023 Venture LLC | United States | 0.00% | 20.00% | | 20.00% | 20.00% | Finance company | — | 4,520 | 3,842 | 668 | Annual report 2025893 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | Societies of which Grupo Santander owns more than 5% (g) , entities associated with Grupo Santander and jointly controlled entities | | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (f) | | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Type of company | Asset | Capital + reserves | Net results | | Siguler Guff SBIC Fund LP (b) | United States | 0.00% | 20.00% | | 20.00% | 20.00% | Investment company | — | 48 | 47 | 4 | | Sistema de Tarjetas y Medios de Pago, S.A. (b) | Spain | 20.61% | 0.00% | | 20.61% | 20.61% | Payment methods | Associated | 468 | 6 | 0 | | Sociedad Conjunta para la Emisión y Gestión de Medios de Pago, E.F.C., S.A. | Spain | 45.70% | 0.00% | | 45.70% | 45.70% | Payment services | Joint ventures | 73 | 37 | (1) | | Sociedad de Garantía Recíproca de Santander, S.G.R. (b) | Spain | 24.91% | 0.22% | | 25.13% | 25.17% | Financial services | — | 18 | 10 | 0 | | Sociedad de Gestión de Activos Procedentes de la Reestructuración Bancaria, S.A. (b) | Spain | 22.21% | 0.00% | | 22.21% | 22.21% | Financial services | — | 12,637 | (4,744) | (2,826) | | Sociedad Interbancaria de Depósitos de Valores S.A. | Chile | 0.00% | 19.66% | | 29.29% | 29.29% | Securities deposits | Associated | 11 | 9 | 2 | | Sociedad Operadora de la Cámara de Compensación de Pagos de Alto Valor S.A. | Chile | 0.00% | 9.21% | | 13.72% | — | Services | Associated | 11 | 8 | 1 | | Solar Maritime Designated Activity Company (b) | Ireland | — | (h) | | — | — | Leasing | Joint ventures | 119 | 7 | (1) | | STELLANTIS Insurance Europe Limited | Malta | 0.00% | 50.00% | | 50.00% | 50.00% | Insurance | Joint ventures | 230 | 61 | 35 | | STELLANTIS Life Insurance Europe Limited | Malta | 0.00% | 50.00% | | 50.00% | 50.00% | Insurance | Joint ventures | 93 | 1 | 14 | | Stephens Ranch Wind Energy Holdco LLC (consolidado) (b) | United States | 0.00% | 15.10% | | 15.10% | 15.80% | Renewable energies | — | 176 | 149 | (7) | | Tecnologia Bancária S.A. | Brazil | 0.00% | 17.05% | | 19.81% | 18.98% | ATMs | Associated | 484 | 149 | 4 | | Tonopah Solar Energy Holdings I, LLC (k) | United States | 0.00% | 26.80% | | 26.80% | 26.80% | Holding company | Joint ventures | — | — | — | | Transbank S.A. | Chile | 0.00% | 16.78% | | 25.00% | 25.00% | Cards | Associated | 1,545 | 139 | 19 | | U.C.I., S.A. | Spain | 50.00% | 0.00% | | 50.00% | 50.00% | Holding company | Joint ventures | 750 | 399 | (3) | | UCI Greece Credit and Loan Receivables Servicing Company Single Member Societe Anonyme | Greece | 0.00% | 50.00% | | 50.00% | 50.00% | Financial services | Joint ventures | 2 | 1 | 0 | | UCI Holding Brasil Ltda. | Brazil | 0.00% | 50.00% | | 50.00% | 50.00% | Holding company | Joint ventures | 0 | (1) | 0 | | UCI Mediação de Seguros, Unipessoal Lda. | Portugal | 0.00% | 50.00% | | 50.00% | 50.00% | Insurance mediation | Joint ventures | 0 | 0 | 0 | | UCI Servicios para Profesionales Inmobiliarios, S.A. Unipersonal | Spain | 0.00% | 50.00% | | 50.00% | 50.00% | Real estate services | Joint ventures | 1 | 0 | 0 | | Uncapped Limited (o) | United Kingdom | 0.00% | 29.14% | | 29.14% | — | Finance company | — | 98 | 21 | (1) | | Unicre-Instituição Financeira de Crédito, S.A. | Portugal | 0.00% | 21.83% | | 21.86% | 21.86% | Finance company | — | 531 | 129 | 20 | | Unión de Créditos Inmobiliarios, S.A. Unipersonal, EFC | Spain | 0.00% | 50.00% | | 50.00% | 50.00% | Mortgage lending company | Joint ventures | 9,255 | 756 | (72) | | Valorhold, S.L. | Spain | 0.00% | 16.00% | | 39.99% | — | Holding company | — | 191 | 133 | 7 | | VCFS Germany GmbH | Germany | 0.00% | 50.00% | | 50.00% | 50.00% | Marketing | Joint ventures | 1 | 1 | 0 | | Venda de Veículos Fundo de Investimento em Direitos Creditórios | Brazil | 0.00% | 35.85% | | 39.89% | 39.89% | Securitization | Joint ventures | 584 | 528 | 55 | | Volvo Car Financial Services UK Limited | United Kingdom | 0.00% | 50.01% | | 50.01% | 50.01% | Leasing | Joint ventures | 3,465 | 187 | 47 | | Waycarbon Soluções Ambientais e Projetos de Carbono S.A. | Brazil | 68.75% | 0.00% | | 50.00% | 100.00% | Consulting services | Associated | 10 | 5 | 1 | | Webmotors S.A. | Brazil | 0.00% | 26.96% | | 30.00% | 30.00% | Services | Associated | 131 | 67 | 36 | | WWSO II LLP | United Kingdom | 0.00% | 94.00% | | 94.00% | — | Real estate investment | Joint ventures | 84 | 28 | 0 | | Zurich Santander Brasil Seguros e Previdência S.A. | Brazil | 0.00% | 48.79% | | 48.79% | 48.79% | Insurance | Associated | 19,589 | 262 | 215 | Annual report 2025894 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | Societies of which Grupo Santander owns more than 5% (g) , entities associated with Grupo Santander and jointly controlled entities | | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (f) | | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Type of company | Asset | Capital + reserves | Net results | | Zurich Santander Holding (Spain), S.L. Unipersonal | Spain | 0.00% | 49.00% | | 49.00% | 49.00% | Holding company | Associated | 1,025 | 936 | 311 | | Zurich Santander Holding Dos (Spain), S.L. Unipersonal | Spain | 0.00% | 49.00% | | 49.00% | 49.00% | Holding company | Associated | 384 | 382 | 178 | | Zurich Santander Insurance América, S.L. | Spain | 0.00% | 49.00% | | 49.00% | 49.00% | Holding company | Associated | 1,504 | 1,450 | 426 | | Zurich Santander Seguros Argentina S.A. (j) | Argentine | 0.00% | 49.00% | | 49.00% | 49.00% | Insurance | Associated | 90 | 45 | 12 | | Zurich Santander Seguros de Vida Chile S.A. | Chile | 0.00% | 49.00% | | 49.00% | 49.00% | Insurance | Associated | 235 | 40 | 36 | | Zurich Santander Seguros Generales Chile S.A. | Chile | 0.00% | 49.00% | | 49.00% | 49.00% | Insurance | Associated | 235 | 53 | 20 | | Zurich Santander Seguros México, S.A. | Mexico | 0.00% | 49.00% | | 49.00% | 49.00% | Insurance | Associated | 2,421 | 50 | 189 | | Zurich Santander Seguros Uruguay S.A. | Uruguay | 0.00% | 49.00% | | 49.00% | 49.00% | Insurance | Associated | 56 | 20 | 14 | a. Amount according to the provisional books at the date of publication of these annexes of each company, generally referring to 31 December 2025, except where otherwise indicated due to the fact that the annual accounts are pending formulation. The data for foreign companies are converted into euros at the exchange rate at the end of the year. b. Data as at 31 December 2024, latest available accounts. c. Data as at 31 December 2019, latest available accounts. d. Data as at 30 November 2021, latest available accounts. e. Company in liquidation as at 31 December 2025. f. Pursuant to Article 3 of Royal Decree 1159/ 2010, of 17 September, approving the rules for the preparation of consolidated annual accounts, in order to determine the voting rights, voting rights held directly by the parent company have been added to those held by companies controlled by the parent company or by other persons acting in their own name but on behalf of a group company. For these purposes, the number of votes corresponding to the parent company, in relation to the companies indirectly dependent on it, is that corresponding to the dependent company that directly participates in the share capital of the latter. g. Excluding the Group companies listed in Appendix I, as well as those which are of negligible interest with respect to the true and fair view that the consolidated financial statements must give (in accordance with articles 48 of the Commercial Code and 260 of the Spanish Companies Act). h. Companies over which joint control is maintained. i. Data as at 31 October 2024, latest available accounts. j. Data as at 30 June 2025, latest available accounts. k. Company with no financial information available. l. Data as 31 December 2023, latest available account. m. Data as at 30 September 2025, latest available accounts. n. Investment managed discretionally by a manager outside the Santander Group, the voting rights not being, in this case, decisive in determining control of the entity. o. Data as 30 April 2025, latest available accounts. p. Company over which effective control has been lost. q. Data as 31 January 2025, latest available accounts. Annual report 2025895 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### Appendix III | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Issuing subsidiaries of shares and preference shares | | | | | | | | | | | | % of ownership held by Banco Santander | | | EUR million (a) | | | | | Company | Location | Direct | Indirect | Activity | Capital | Reserves | Cost of preferred | Net results | | Emisora Santander España, S.A. Unipersonal (c) | Spain | — | — | Finance company | — | — | — | — | | Santander UK (Structured Solutions) Limited | United Kingdom | 0.00% | 100.00% | Finance company | 0 | 0 | 0 | 0 | | Santander Global Issuances B.V. (b) | Netherlands | 100.00% | 0.00% | Finance company | 0 | 0 | 0 | 0 | | Sovereign Real Estate Investment Trust | United States | 0.00% | 100.00% | Finance company | 4,751 | (3,383) | 82 | 9 | a. Amount according to the books of each interim company as at 31 December 2025, converted into euro (in the case of foreign companies) at the year-end exchange rate. b. Company with tax residence in Spain. c. Accounting merged company. Pending registration. Annual report 2025896 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### Appendix IV Notifications of acquisitions and disposals of #### investments in 2025 (Art. 155 of the Corporate Enterprises Act and Art. 105 of the Securities Market Law). Regarding compliance with Art. 125 of the Securities Market Law, no required notifications were submitted during 2025. In relation to the information required by 155 of the Corporate Enterprises Act, on the shareholdings in which Grupo Santander owns more than 10% of the capital of another company, and the successive acquisitions of more than 5% of the share capital, see appendices I, II and III. Annual report 2025897 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | A #### ppendix V Other information on the Group’s banks Following is certain information on the share capital of the Group’s main banks based on their total assets. 1 . Santander UK plc a) Number of financial equity instruments held by the #### Group. At 31 December 2025, the Company was a subsidiary of Banco Santander, S.A. and Santusa Holding, S.L. On 12 November 2004 Banco Santander, S.A. acquired the then entire issued ordinary share capital of 1,485,893,636 Ordinary shares of 10p. each. On 12 October 2008 a further 10 billion Ordinary shares of 10p. each were issued to Banco Santander, S.A. and an additional 12,631,375,230 Ordinary shares of 10p. each were issued to Banco Santander, S.A. on 9 January on 2009. On 3 August 2010, 6,934,500,000 Ordinary shares of 10p. each were issued to Santusa Holding, S.L.. With effect from 10 January 2014, Santander UK Group Holdings Limited, a subsidiary of Banco Santander, S.A. and Santusa Holding, S.L., became the beneficial owner of 31,051,768,866 Ordinary shares of 10p. each, being the entire issued ordinary share capital of the Company, by virtue of a share exchange agreement between Santander UK Group Holdings Limited, Banco Santander, S.A. and Santusa Holding, S.L.. Santander UK Group Holdings Limited became the legal owner of the entire issued Ordinary share capital of the Company on 1 April 2014 and on 25 March 2015 became a public limited company and changed its name from Santander UK Group Holdings Limited to Santander UK Group Holdings plc. In addition to this, there are 325,000,000 Non-Cumulative Non-Redeemable 10.375% and 8.625% Sterling Preference Shares of GBP 1.00 each. In addition to this there were 13,780 Series A Fixed (6.222%)/Floating Rate Non- Cumulative Callable Preference Shares of GBP 1.00 each which were redeemed and cancelled in their entirety on 24 May 2019. The legal and beneficial title to the entire issued Preference share capital is held by third parties and is not held by Banco Santander, S.A. b) #### Capital increases in progress At 31 December 2025, there were no approved capital increases. c) Share capital authorised by the shareholders at the #### general meeting The shareholders resolved at the Annual General Meeting held on 30 June 2025, to authorise unconditionally, the company to carry out the following repurchases of the  share capital: (1) To buy back its own 8.625% Sterling Preference shares on the following terms: (a) The Company may buy back up to 125,000,000 8.625% Sterling Preference shares; (b) The lowest price which the Company can pay for 8.625% Sterling Preference shares is 75% of the average of the market values of the preference shares for five business days before the purchase is made; and (c) The highest price (not including expenses) which the Company can pay for each 8.625% Sterling Preference share is 125% of the average of the market values of the preference shares for five business days before the purchase is made. This authority shall begin on the date of the passing of this resolution and end on the conclusion of the next Annual General Meeting of the Company. The Company may agree, before this authorisation ends, to buy back its own 8.625% preference shares even though the purchase may be completed after this authorisation ends. (2) To buy back its own 10.375% Sterling Preference shares on the following terms: (a) The Company may buy up to 200,000,000 10.375% Sterling Preference shares; (b) The lowest price which the Company can pay for 10.375% Sterling Preference shares is 75% of the average of the market values of the preference shares for five business days before the purchase is made; and (c) The highest price (not including expenses) which the Company can pay for each 10.375% Sterling Preference share is 125% of the average of the market values of the preference shares for five business days before the purchase is made. This authority shall begin on the date of the passing of this resolution and end on the conclusion of the next Annual General Meeting of the Company. The Company may agree, before this authorisation ends, to buy back its own 10.375% preference shares even though the purchase may be completed after this authorisation ends. #### d) Rights on founder’s shares, 'rights' bonds, convertible #### debentures and similar securities or rights Not applicable. e) Specific circumstances that restrict the availability of #### reserves Not applicable. f) Entities outside the Group which own, directly or through subsidiaries, a stake equal to or greater than 10% of the equity. Not applicable. #### g) Equity instruments admitted to trading The preference share capital of Santander UK plc is traded on the London Stock Exchange under the following details: • 10.375% Sterling Preference - ISIN: GB0000064393 • 8.625% Sterling Preference - ISIN: GB0000044221 2. Santander Financial Services plc a) #### Number of financial equity instruments held by the Group The Group holds ordinary shares amounting to GBP 249,998,000 through Santander UK Group Holdings plc (249,998,000 ordinary shares with a par value of GBP 1 each). Annual report 2025898 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The Group also holds 1,000 tracker shares (shares without voting rights but with preferential dividend rights) amounting to GBP 1,000 and 1,000 B tracker shares amounting to GBP 1,000 through Santander UK Group Holdings plc, both with a par value of GBP 1 each. Additionally, the company issued GBP 50 million additional tier 1 (AT ) capital securities to Santander UK Group Holdings plc on 19 December 2022. b) #### Capital increases in progress No approved capital increases are in progress. c) #### Capital authorised by the shareholders at the general meeting Not applicable. d) Rights on founder’s shares, 'rights' bonds, convertible debentures and similar securities or rights Not applicable. e) #### Specific circumstances that restrict the availability of reserves Not applicable. f) Entities outside the Group which own, directly or through subsidiaries, a stake equal to or greater than 10% of the equity. Not applicable. g) #### Equity instruments admitted to trading Not applicable. 3. Banco Santander (Brasil) S.A. a) Number of financial equity instruments held by the #### Group The Group holds 3,440,170,512 ordinary shares and 3,273,507,089 preference shares through Banco Santander, S.A. and its subsidiaries Sterrebeeck B.V. and Grupo Empresarial Santander, S.L. The shares composing the share capital of Banco Santander (Brasil) S.A. have no par value and there are no pending payments. At 2025 year-end, the bank’s treasury shares consisted of 13,666,460 ordinary shares and 13,666,460 preferred shares, with a total of 27,332,920 shares. In accordance with current Bylaws (Article 5.7), the preference shares do not confer voting rights on their holders, except under the following circumstances: a) In the event of transformation, merger, consolidation or spin-off of the company. b) In the event of approval of agreements between the company and the shareholders, either directly, through third parties or other companies in which the shareholders hold a stake, provided that, due to legal or Bylaws provisions, they are submitted to a general meeting. c) In the event of an assessment of the assets used to increase the company’s share capital. The General Assembly may, at any moment decide to convert the preference shares into ordinary shares, establishing a reason for the conversion. However, the preference shares do have the following advantages (Article 5.6): a) Their dividends are 10% higher than those distributed to ordinary shares. b) Priority in the dividends distribution. c) Participation, on the same terms as ordinary shares, in capital increases resulting from the reserves and profits capitalization and in the distribution of bonus shares arising from the capitalization of retained earnings, reserves or any other funds. d) Priority in the reimbursement of capital in the event company’s dissolution. e) In the event of a public offering due to a change in control of the company, the holders of preferred shares are guaranteed the right to sell the shares at the same price paid for the block of shares transferred as part of the change of control, i.e. they are treated the same as shareholders with voting rights. #### b) Capital increases in progress No approved capital increases are in progress. #### c) Capital authorised by the shareholders at the general #### meeting The company is authorised to increase share capital, subject to approval by the board of directors, up to a limit of 9,090,909,090 ordinary shares or preferred shares, and without need to maintain any ratio between any of the different classes of shares, provided they remain within the limits of the maximum number of preferred shares provided in Law. As of 31 December 2025, the share capital consists of 7,498,531,051 shares (3,818,695,031 ordinary shares and 3,679,836,020 preferred shares). #### d) Rights on founder’s shares, 'rights' bonds, convertible #### debentures and similar securities or rights At the general meeting held on 21 December 2016 the shareholders approved the rules relating to the deferred remuneration plans for the directors, management and other employees of the company and of companies under its control. Shares delivery is linked to achievement of certain targets. At the general meeting held on April 26, 2024, the shareholders approved an adjustment to the relevant regulations for the calculation of the average period of daily quotations for the purposes of bonus payments. #### e) Specific circumstances that restrict reserves availability The only restriction on the availability of Banco Santander (Brasil) S.A.’s reserves is connected to the requirement for the legal reserve formation (restricted reserves), which can only be used to offset losses or to increase capital. The legal reserve requirement is set-forth in Article 193 of the Brazilian Corporations Law, which establishes that before allocating profits to any other purpose, 5% of profits must be transferred to the legal reserve, which must not exceed 20% of the company’s share capital. Annual report 2025899 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | f) Entities outside the Group which own, directly or through subsidiaries, a stake equal to or greater than 10% of the equity. Not applicable. #### g) Equity instruments admitted to trading All the shares are listed on the São Paulo Stock Exchange ( B3 - Brasil, Bolsa, Balcão) and the shares deposit certificates (American Depositary Receipts - ADR) are listed on the New York Stock Exchange (NYSE). 4. Santander Bank, National Association a) Number of financial equity instruments held by the #### Group At 31 December, 2025, the Group held 530,391,043 ordinary shares that carry the same voting and dividend acquisition rights over Santander Holdings USA, Inc. (SHUSA). This holding company holds 1,237 ordinary shares of Santander Bank, National Association (SBNA) with a par value of USD 1 each, which carry the same voting rights and constitute all the share capital of SBNA. Prior to 1 December, 2025, SHUSA held an 80.84% ownership interest in SBNA, and the remaining 19.16 % was held by Independence Community Bank Corp. (ICBC), a wholly owned subsidiary of SHUSA.  ICBC was dissolved and its ownership interest in SBNA was distributed in liquidation to SHUSA on 1 December, 2025. There is no shareholders’ meeting for the ordinary shares of SBNA. #### b) Capital increases in progress At 31 December 2025 there were no approved capital increases. #### c) Capital authorised by the shareholders at the general #### meeting Not applicable. #### d) Rights on founder’s shares, 'rights' bonds, convertible #### debentures and similar securities or rights Not applicable. e) Specific circumstances that restrict the availability of #### reserves Not applicable. f) Entities outside the Group which own, directly or through subsidiaries, a stake equal to or greater than 10% of the equity. Not applicable. #### g) Equity instruments admitted to trading Not applicable. 5. Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México a) Number of financial instruments of capital held by the #### group. Grupo Financiero Santander México, S.A. de C.V. ('Grupo Financiero') and Gesban México Servicios Administrativos Globales, S.A. de C.V. (México), hold 5,088,000,736 shares which represent the 74.97% of the capital stock of  Banco Santander México and Banco Santander, S.A. holds 1,691,806,903 shares which represent the 24.92% of such capital stock. On November 30, 2022, an Extraordinary Shareholders' Meeting of Banco Santander México, was held at which it was approved (a) to cancel the registration of all of the shares representing the capital stock of the Company in the National Securities Registry (RNV) maintained by the National Banking and Securities Commission and to delist them from the Mexican Stock Exchange (Bolsa Mexicana de Valores, S.A.B. de C.V.), and (b) delist the American Depositary Shares (each representing five series 'B' shares of the Company) from the New York Stock Exchange and delist the Company's series 'B' shares and such American Depositary Shares from registration with the US Securities and Exchange Commission; and (c) to conduct certain tender offers for the series 'B' shares representing the capital stock of the Company and the American Depositary Shares. Tender offers for the acquisition of shares were carried out from February 7 to April 10, 2023, where Banco Santander, S.A. acquired a total of 244,306,313 series 'B' shares. Once the offers were finalized and in accordance with the Mexican regulation, on May 8, 2023, a trust was established for a period of 6 months, to carry out the acquisition of shares of Banco Santander México, including those represented by American Depositary Shares listed on the New York Stock Exchange (which were not owned at that time by Banco Santander, S.A. or its subsidiaries) owned by shareholders who did not participate in the tender offers made by Banco Santander, S.A. On May 4 and 12, 2023, respectively, Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México, was delisted from the New York Stock Exchange, LLC and the RNV . On November 8, 2023, the trust ended; as a result, Banco Santander, S.A. repurchased 9,243,880 series 'B' shares from shareholders who did not participate in the tender offers, leaving a total of 1,714,399 shares of the series 'B' in the hands of minority shareholders. On February 13, 2024, an Extraordinary Shareholders' Meeting of Banco Santander México, S.A. was held, at which it was approved to amend the Bylaws of the Institution to remove the obligations established by the Securities Market Law as a public company. #### b) Ongoing capital stock increases. To this date there are not ongoing capital stock increases. Annual report 2025900 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### c) Authorized Capital  by the Shareholders Meeting. On April 20, 2021, the Company held an Extraordinary General Shareholders' Meeting, at which, among other items, it was approved an increase in the authorized capital stock of the Company to  6,825,447,481.00 Mexican pesos  represented by 1,805,300,000 unsubscribed and unpaid shares, which are held in treasury so that the Company may issue Capital Instruments representing non-preferred subordinated debt, perpetual nature and convertible into ordinary shares, together with the corresponding amendment to the Company’s Bylaws. This increase was approved by the National Banking and Securities Commission (CNBV) through official communication number 312-3/10039041/2021 dated November 8, 2021. As a result of said agreement, the Company requested the update of the registration of the shares representing the capital stock of Banco Santander Mexico, S.A. in the RNV, which was authorized by the CNBV through official communication number 153/2800/2022 dated May 20, 2022.In the aforementioned official communication, it was requested that the Company adjusted the amounts in pesos corresponding to the capital stock to include cents, and therefore, through an Extraordinary General Stockholders' Meeting held on July 19, 2022, the corresponding adjustment was made, which was authorized by the CNBV through official communication number 312-3/93573/2023 dated January 3, 2023. The  capital stock of the Bank is 32,485,600,109.44 Mexican pesos represented by a total of 8,592,294,357  shares with a nominal value of 3.780782962 Mexican pesos each one; divided in 4,385,824,012  stocks  'F' series and 4,206,470,345 shares  'B' series. The capital stock is constituted as follows: • Subscribed and paid-in capital of the Bank is 25,660,152,628.14 Mexican pesos represented by a total of 6,786,994,357  shares with a nominal value of 3.780782962 Mexican pesos  each one; divided in 3,464,309,145 shares 'F' series and 3,322,685,212 shares series. • The authorized capital stock for the conversion of obligations into shares of the Company is  6,825,447,481.30 Mexican pesos, represented by a total of 1,805,300,000  shares with a nominal value of  3,780782962 Mexican pesos  each; divided into 921,514,867  series 'F' shares and 883,785,133  series 'B shares'. d) Rights incorporated into parts of founder, bonds or debt, convertible obligations and securities or similar rights. On September 20, 2018, Banco Santander México, issued and placed equity instruments, subordinated, preferential, and not convertible into shares, governed by foreign law, representative of the complementary part of the net capital of Banco Santander Mexico (tier 2 subordinated preferred capital notes), for the amount of 1,300 million American dollars (the 'Instruments'), whose resources were used mainly for the acquisition of the 94.07% of the Subordinated Notes 2013. On June 15, 2020, the Bank’s Shareholders' Meeting was held, which approved to increase the debt securities issuance in order to be settled in the amount of 10,000 million American dollars, to be used considering the following, among others: i) issuance of debt securities in local and international markets; ii) senior or subordinated debt, including in both cases preferred and not preferred securities, and debt securities classified as capital on a regulatory point of view. The board of directors on its meeting held on June 18, 2020, ratified the 10,000 million American dollars limit approved by the above mentioned Shareholders Meeting. On April 20, 2021, a General Extraordinary Shareholders' Meeting of Banco Santander México was held, where among other issues, it was approved that the Bank may issue subordinated non preferential perpetual and convertible capital notes, to be placed abroad, in accordance with the Banco de Mexico authorization. On September 15, 2021, Banco Santander Mexico issued abroad the 'Perpetual Subordinated Non-Preferred Contingent Convertible Additional Tier 1 Notes', up to an amount of 700 million American dollars. On the same date, the Bank paid the '2016 Obligations' issued by the Bank, on a fixed initial rate of 4.625% up to an amount of 700 million American dollars. On January 25, 2024, the Bank’s board of directors approved, among others, the issuance of preferred subordinated Notes tier 2 abroad, up to 1,500 million American dollars. Subsequently, the General Shareholders Meeting dated February 27, 2024, approved the issuance of capital instruments as part of the complementary capital (tier 2), to be placed abroad, up to an amount of 1,030 million American dollars (900 million American dollars were effectively placed). On October 17, 2024, the Bank’s board of directors approved, among others, the issuance of a Senior Note abroad up to an amount of 700 million American dollars. On April 24, 2025, the Bank’s board of directors approved, among others, the issuance of Subordinated Preferred tier2 Notes to be placed abroad, for the amount of 1,200 million American dollars during 2025. Subsequently, the Bank’s General Shareholders Meeting dated June 17, 2025, approved the issuance of capital instruments as part of the complementary capital (tier 2), to be placed abroad, up to an amount of 1,200 million US dollars (the total amount was effectively placed). The approved debt issuance of Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México is currently composed as follows: Annual report 2025901 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Instrument | Type | Term | Amount | Available | | Issuance Program of unsecured bonds and unsecured certificates of deposit | Revolving | 04-Mar-2026 | 80,000 million Mexican pesos, or its equivalent in UDIs, dollars or any other foreign currency | $31,870 million Mexican pesos | | Private banking structured bonds Act with subsequent placements (JBSANPRIV 24-1) | Not revolvingA | 10-Oct-2029 | 100,000 million Mexican pesos | $0 million Mexican pesos | | Private structured bonds Act with subsequent placements (JBSANPRIV 25-1) | Not revolvingA | 01-Oct-2030 | 100,000 million Mexican pesos | $85,889 million Mexican pesos | | Public banking structured bonds Act with subsequent placements | Not revolvingA | 16-Dic-2027 | 10,000 million Mexican pesos | $10,000 million Mexican pesos | | Subordinated Notes RegS (2025) | Not revolvingA | 27-Jun-2032 | 1,200 million American dollars | N/A | | Capital Notes (tier 2 Capital) | Not revolvingA | 1-Oct-2028 | 1,300 million American dollars | N/A | | Subordinated Notes, perpetual and convertible (tier 1) | Not revolvingA | perpetual | 700 million American dollars | N/A | | Subordinated Preferred Notes (2024) | Not revolvingA | 21-Mar-2030 | 900 million American dollars | N/A | | Senior Notes 144.ª/RegS (2024) | Not revolvingA | 10-Dic-2029 | 700 million American dollars | N/A | A. The issuance of the structured private banking bonds is not revolving. Once placed the amount laid down in the corresponding brochure a new certificate will be issued on the authorized amount. e) Specific circumstances restricting the availability of #### reserves. According to the Law of Financial Institutions, general dispositions applicable to financial institutions, General Corporations law and the Bylaws, the Bank has to constitute or increase its capital reserves to ensure the solvency to protect the payments system and the public savings. The Bank increases its legal reserve annually accordingly to the results obtained in the fiscal year (benefits). The Bank must constitute the different reserves established in the legal provisions applicable to financial institutions, which are determined accordingly to the qualification granted to credits and they are released when the credit rating improves, or when it is settled. f) Entities outside the Group which own, directly or through subsidiaries, a stake equal to or greater than 10% of the equity. Not applicable. #### g) Equity instruments admitted to trading. Not applicable. Annual report 2025902 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 6. Banco Santander Totta, S.A #### a) Number of equity instruments held by the Group Banco Santander, S.A. owns 1,383,690,177 shares of Banco Santander Totta, S.A.. Banco Santander Totta, S.A. own 6.326.736 treasury shares, all of which have a par value of EUR 1 each and identical voting and dividend rights and are subscribed and paid in full. Banco Santander, S.A. direct participation at Banco Santander Totta, S.A. arise as result of the incorporation by merger of its majority shareholder, Santander Totta, SGPS, S.A. and Taxagest – Sociedade Gestora de Participações Sociais, S.A.  in Banco Santander Totta, S.A. occurred at February 28, 2025. #### b) Capital increases in progress At 31 December 2025, there were no equity increases in progress. #### c) Capital authorised by the shareholders at the general #### meeting Not applicable. #### d) Rights on founder’s shares, 'rights' bonds, convertible #### debentures and similar securities or rights Not applicable. e) Specific circumstances that restrict the availability of #### reserves Under Article 296 of the Portuguese Companies’ Code, the legal and merger reserves can only be used to offset losses or to increase capital. Non-current asset revaluation reserves are regulated by Decree- Law 31/98, under which losses can be offset or capital increased by the amounts for which the underlying asset is depreciated, amortised or sold. f) Entities outside the Group which own, directly or through subsidiaries, a stake equal to or greater than 10% of the equity. Not applicable. #### g) Equity instruments admitted to trading Not applicable. 7. Santander Consumer Bank AG a) Number of financial equity instruments held by the #### Group At 31 December 2025, through Santander Consumer Holding GmbH, the Group held 30,002 ordinary shares with a par value of EUR 1,000 each, all of which carry the same voting rights. #### b) Capital increases in progress Not applicable. #### c) Capital authorised by the shareholders at the general #### meeting Not applicable. #### d) Rights on founder’s shares, 'rights' bonds, convertible #### debentures and similar securities or rights Not applicable. e) Specific circumstances that restrict the availability of #### reserves Not applicable. f) Entities outside the Group which own, directly or through subsidiaries, a stake equal to or greater than 10% of the equity. Not applicable. #### g) Equity instruments admitted to trading Not applicable. 8. Banco Santander - Chile #### a) Number of equity instruments held by the Group The Group holds a 67.18% ownership interest in its subsidiary in Chile corresponding to 126,593,017,845 ordinary shares of Banco Santander - Chile through its subsidiaries: Santander Chile Holding S.A. with 66,822,519,695 ordinary shares, Teatinos Siglo XXI Inversiones S.A., with 59,770,481,573 ordinary shares and Santander Inversiones S.A. with 16,577 fully subscribed and paid ordinary shares that carry the same voting and dividend rights. #### b) Capital increases in progress At 31 December 2025, there were no approved capital increases. #### c) Capital authorised by the shareholders at the general #### meeting Share capital at 31 December 2025 amounted to CLP 891,302,881,691. #### d) Rights on founder’s shares, 'rights' bonds, convertible #### debentures and similar securities or rights Not applicable. e) Specific circumstances that restrict the availability of #### reserves Remittances to foreign investors in relation to investments made under the Statute of Foreign Investment (Decree-Law 600/1974) and the amendments thereto require the prior authorisation of the foreign investment promotion agency. f) Entities outside the Group which own, directly or through subsidiaries, a stake equal to or greater than 10% of the equity. Not applicable. #### g) Equity instruments admitted to trading All the shares are listed on the Chilean stock exchanges and, through American Depositary Receipts (ADRs), on the New York Stock Exchange (NYSE). Annual report 2025903 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | 9. Santander Bank Polska S.A. a) Number of financial equity instruments held by the #### Group At 31 December, 2025, Banco Santander, S.A. held 59,984,148 ordinary shares with a par value of PLN 10 each, all of which carry the same voting rights. On 13 September 2024, Banco Santander sold 5,320,000 shares held in Santander bank Polska S.A. (ca. 5.2% of the in share capital). On 4 December 2025, Banco Santander sold 3,576,626 shares held in Santander Bank Polska S.A. (ca. 3.5% of the in share capital). #### b) Capital increases in progress At 31 December, 2025, there were no equity increases in progress. #### c) Capital authorised by the shareholders at the general #### meeting There was no share capital increase in 2025. #### d) Rights on founder’s shares, 'rights' bonds, convertible #### debentures and similar securities or rights Not applicable. e) Specific circumstances that restrict the availability of #### reserves Not applicable. f) Entities outside the Group which own, directly or through subsidiaries, a stake equal to or greater than 10% of the equity. Not applicable. #### g) Equity instruments admitted to trading All the shares of Santander Bank Polska S.A. are listed on the Warsaw Stock Exchange. Annual report 2025904 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### Appendix VI #### Annual banking report Grupo Santander’s total tax contribution (taxes incurred directly and by third parties, generated in the course of business) is around EUR 22.1 billion, including more than EUR 9.5 billion in taxes incurred directly (corporate income tax, non-recoverable value added tax (VAT) and other indirect taxes, employer Social Security contributions, payroll taxes and other taxes and levies). This report complies with Article 89 of Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, and its transposition into Spanish law pursuant to Article 87 of Act 10/2014 of 26 June on the regulation, supervision and capital adequacy of credit institutions. The criteria used to prepare this report were: #### a) Name(s), activities and location Appendices I to III to the consolidated financial statements contain details of the companies operating in each jurisdiction, including their name(s), location and activities. Santander main activity in the jurisdictions where operate is commercial banking. The Group primarily operates in ten markets through subsidiaries that are autonomous in capital and liquidity. This has clear strategic and regulatory advantages, since it limits the risk of contagion between units, imposes a double layer of global and local oversight, and facilitates crisis management and resolution. #### b) Turnover and profit or loss before #### tax Turnover in this report is Total income, and profit or loss before tax, Operating profit/(loss) before tax, both as defined and presented in the consolidated income statement that forms part of the consolidated financial statements. #### c) Number of full-time equivalent employees The data on full-time equivalent employees stem from the average headcount of each jurisdiction. #### d) Tax on profit or loss In the absence of specific criteria, we have included the amount effectively paid (EUR 4,954 million in 2025, with an effective tax rate of 24.0%) in respect of taxes whose effect is recognized under Income tax in the consolidated income statement. Taxes effectively paid by the companies in each jurisdiction include: • Supplementary payments relating to income tax returns, usually for prior years. • Advances, prepayments, withholdings made or borne in respect of tax on profit or loss for the year. We included taxes borne abroad in the jurisdiction of the company that bore them. • Refunds received with respect to prior years’ returns. • Where appropriate, the amount payable from assessments and litigation relating to these taxes. The foregoing form part of the cash flow statement and differ from the corporate income tax expense recognized in the consolidated income statement (EUR 5,131 million in 2025, representing an effective rate of 24.9%, see note 27). This is because each country’s tax regulations establish: • when taxes must be paid. There is often a mismatch between the payment dates and the generation of the income bearing the tax. • their own calculation criteria to define temporary or permanent restrictions on expense deduction, exemptions and relief or deferrals of certain income, generating the differences between the accounting profit (or loss) and taxable profit (or tax loss) which is ultimately taxed; tax loss carry forwards from prior years, tax credits and/or relief, etc., must also be added. In certain cases, special regimes such as the tax consolidation of companies in the same jurisdiction are established. #### e) Public subsidies In the context of the legally-required disclosures, this was interpreted as any aid or subsidy in line with the European Commission’s Guidance on the notion of State aid. Grupo Santander did not receive significant public subsidies in 2025. Annual report 2025905 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | The breakdown of information is as follows: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | 2025 | | | | | Jurisdiction | Turnover (EUR million) | Full-time equivalent employees | Gross profit or loss before tax (EUR million) | Tax on profit or loss (EUR million) | | Germany | 1,759 | 4,659 | 257 | 60 | | Argentina | 2,248 | 7,964 | 684 | 133 | | Australia | 9 | 54 | 1 | — | | Austria | 211 | 296 | 53 | 15 | | Bahamas | 15 | 22 | 9 | — | | Belgium | 51 | 237 | 15 | 11 | | Brazil1 | 11,687 | 55,539 | 1,998 | 1,204 | | Bulgaria | 7 | 15 | 2 | — | | Canada | 70 | 322 | 4 | — | | Chile | 2,668 | 9,066 | 1,222 | 35 | | China | 40 | 118 | 9 | — | | Colombia | 156 | 1,277 | 43 | 25 | | United Arab Emirates | 12 | 143 | (24) | — | | Spain2 | 12,226 | 35,097 | 4,625 | 792 | | United States | 7,920 | 10,915 | 1,794 | 268 | | Denmark | 152 | 233 | 51 | 11 | | Finland | 84 | 160 | 26 | 13 | | France | 833 | 1,020 | 424 | 106 | | Greece | 25 | 54 | 10 | — | | Hong Kong | 128 | 244 | 28 | 7 | | Ireland | 18 | 10 | 11 | 2 | | Isle of Man | 46 | 78 | 31 | 3 | | Italy | 776 | 1,282 | 316 | 86 | | Jersey | 21 | 62 | 12 | 1 | | Luxembourg | 744 | 37 | 723 | 245 | | Mexico | 6,139 | 29,311 | 2,213 | 558 | | Norway | 250 | 527 | 143 | 23 | | Netherlands | 175 | 352 | 94 | 114 | | Peru | 373 | 2,242 | 135 | 26 | | Poland3 | 4,184 | 13,021 | 2,069 | 543 | | Portugal | 2,032 | 5,393 | 1,430 | 437 | | United Kingdom | 6,238 | 18,617 | 1,876 | 169 | | Romania | 9 | 33 | 3 | — | | Singapore | 46 | 38 | 25 | 3 | | Sweden | 153 | 332 | 45 | 20 | | Switzerland | 245 | 459 | 26 | 15 | | Uruguay | 640 | 1,512 | 248 | 29 | | Consolidated Group Total | 62,390 | 200,741 | 20,631 | 4,954 | 1. Including the information relating to a branch in the Cayman Islands, the profits of which are taxed in full in Brazil. The contribution of this branch profit before tax from continuing operations is EUR 488 million. 2. Includes the Corporate Centre. 3. Including information associated with the business subject to the Poland disposal reported under a single line in the consolidated income statement — 'profit/(loss) after tax from discontinued operations’ (see note 52.c). At 31 December 2025, the Group’s return on assets (ROA) was 0.84%. Annual report 2025906 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | Pursuant to Article 253, section 1 of the revised Spanish Companies Act (Ley de Sociedades de Capital), the board of directors of Banco Santander, S.A. draws up the consolidated financial statements (comprising the consolidated balance sheet, income statement, statement of recognized income and expense, statement of changes in total equity, statement of cash flows and the notes to the consolidated financial statements) and the consolidated directors’ report for the 2025 fiscal year in eXtensible HyperText Markup Language (XHTML) format and, with respect to the main consolidated financial statements and the notes to the consolidated financial statements, with tags in the standard eXtensible Business Reporting Language (XBRL), all of which conforms to the single electronic reporting format required under Directive 2004/109/EC and Delegated Regulation (EU) 2019/815. The directors of Banco Santander, S.A., listed below with an indication of their respective positions, declare that, to the best of their knowledge, the company's consolidated financial statements for the 2025 financial year were drawn up in accordance with the applicable accounting principles and give a true and fair view of the assets, liabilities, financial position and profit or loss of Banco Santander, S.A. and of the undertakings included in the consolidation taken as a whole, and that the consolidated directors’ report includes a fair review of the development, performance and position of the company and of the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face. Boadilla del Monte (Madrid), 24 February 2026 | | | | | --- | --- | --- | | | | | | | | | | | | | | | | | | ANA PATRICIA BOTÍN-SANZ DE SAUTUOLA Y O’SHEA | | HÉCTOR BLAS GRISI CHECA | | Chair | | Chief Executive Officer | | | | | | --- | --- | --- | | | | | | | | | | | | | | | | | | GLENN HOGAN HUTCHINS | | JOSÉ ANTONIO ÁLVAREZ ÁLVAREZ | | Vice Chair | | Vice Chair | Annual report 2025907 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | [Contents](#i6ecb2a0d58d04b53bfadfa2a833efaa7_31) | | [Auditor's](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_916) | | [Consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_928) | | [Notes to the consolidated](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [financial statements](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_946) | | [Appendix](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) [l](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1306) | | #### MEMBERS : | | | | | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | HOMAIRA AKBARI | | JUAN CARLOS BARRABÉS CÓNSUL | | | | | | | | | | | | | | | | | | FRANCISCO JAVIER BOTÍN-SANZ DE SAUTUOLA Y O’SHEA | | SOL DAURELLA COMADRÁN | | | | | | | | | | | | | | | | | | HENRIQUE MANUEL DRUMMOND BORGES CIRNE DE CASTRO | | GERMÁN DE LA FUENTE ESCAMILLA | | | | | | | | | | | | | | | | | | GINA LORENZA DÍEZ BARROSO AZCÁRRAGA | | LUIS ISASI FERNÁNDEZ DE BOBADILLA | | | | | | | | | | | | | | | | | | BELÉN ROMANA GARCÍA | | PAMELA ANN WALKDEN | | | | | | | | | | | | | | | | ANTONIO FRANCESCO WEISS | | | Annual report 2025908 #### General information #### Corporate information Banco Santander, S.A. is a Spanish bank, incorporated as sociedad anónima in Spain and is the parent company of Grupo Santander. Banco Santander, S.A. operates under the commercial name Santander. The Bank’s Legal Entity Identifier (LEI) is 5493006QMFDDMYWIAM13 and its Spanish tax identification number is A-39000013. The Bank is registered with the Companies Registry of Cantabria, and its Bylaws have been adapted to the Spanish Companies Act by means of the notarial deed instrument executed in Santander on 29 July 2011 before the notary Juan de Dios Valenzuela García, under number 1209 of his book and filed with the Companies Registry of Cantabria in volume 1006 of the archive, folio 28, page number S-1960, entry 2038. The Bank is also registered in the Official registry of entities of Bank of Spain with code number 0049. The Bank’s registered office is at: Paseo de Pereda, 9-12 39004 Santander Spain The Bank’s principal executive offices are located at: Santander Group City Avda. de Cantabria s/n 28660 Boadilla del Monte Madrid Spain Telephone: (+34) 91 276 92 90 #### Corporate history The Bank was established in the city of Santander by public deed before the notary José Dou Martínez on 3 March 1856, which was later ratified and amended in part by a second public deed dated 21 March 1857 executed before the notary José María Olarán. The Bank commenced operations upon incorporation on 20 August 1857 and, according to article 4 of the Bylaws, its duration shall be for an indefinite period. It was transformed into a credit corporation (sociedad anónima de crédito) by public deed, executed before notary Ignacio Pérez, on 14 January 1875 and registered in the Companies Registry Book of the Government’s Trade Promotion Section in the province of Santander. The Bank amended its Bylaws to conform to the Spanish public companies act of 1989 by means of a public deed executed in Santander on 8 June 1992 before the notary José María de Prada Díez and recorded in his notarial record book under number 1316. On 15 January 1999, the boards of directors of Santander and Banco Central Hispanoamericano, S.A. agreed to merge Banco Central Hispanoamericano, S.A. into Santander, and to change Banco Santander’s name to Banco Santander Central Hispano, S.A. The shareholders of Santander and Banco Central Hispanoamericano, S.A. approved the merger on 6 March 1999, at their respective general meetings and the merger became effective in April 1999. The Bank’s general shareholders’ meeting held on 23 June 2007 approved the proposal to change back the name of the Bank to Banco Santander, S.A. As indicated above, the Bank brought its Bylaws into line with the Spanish Companies Act by means of a public deed executed in Santander on 29 July 2011. The Bank’s general shareholders’ meeting held on 22 March 2013 approved the merger by absorption of Banco Español de Crédito, S.A. On 7 June 2017, Santander acquired the entire share capital of Banco Popular Español, S.A. in an auction in connection with a resolution plan adopted by the European Single Resolution Board (the European banking resolution authority) and executed by the FROB (the Spanish banking resolution authority) following a determination by the European Central Bank that Banco Popular was failing or likely to fail, in accordance with Regulation (EU) 806/2014 establishing a framework for the recovery and resolution of credit institutions and investment firms. On 24 April 2018, the Bank announced that the boards of directors of Banco Santander, S.A. and Banco Popular Español, S.A.U. had agreed to an absorption of Banco Popular by Banco Santander. The legal absorption was effective on 28 September 2018. Annual report 2025909 #### Shareholder and investor relations Santander Group City Pereda, 2ª planta Avda. de Cantabria, s/n 28660 Boadilla del Monte Madrid Spain Telephone: (+34) 91 276 92 90 accionistas@santander.com investor@gruposantander.com Hard copies of the Bank’s annual report can be requested by shareholders free of charge at the address and phone number indicated above. #### Customer service department Apartado de Correos 35.250 28080 Madrid santander\_reclamaciones@gruposantander.es #### Media enquiries Santander Group City Arrecife, 2ª planta Avda. de Cantabria, s/n 28660 Boadilla del Monte Madrid Spain Telephone: (+34) 91 289 52 11 comunicacion@gruposantander.com ![contraportada.jpg]() #### santander.com ![LogoSantander_300.jpg]() | | | --- | | | | 911 | #### Part 2. #### Supplemental information | | | --- | | | | 912 | Table of contents: | | | | --- | --- | | | | | 1. [Supplemental information to the consolidated directors' report](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1456) | [913](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1456) | | [Corporate governance code](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1459) | [913](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1459) | | [Branches](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1462) | [913](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1462) | | [Statement on diversity](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1465) | [913](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1465) | | [Important events](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1465) | [914](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1468) | | 2.[Financial statements of Banco Santander, S.A.](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1471) | [915](#i6ecb2a0d58d04b53bfadfa2a833efaa7_1471) | | Auditor's report | | | Annual accounts | | | | | --- | | | | 913 | 1. Supplemental information to the #### consolidated directors' report 1.1. Corporate governance code The CNMV’s Good Governance Code for Listed Companies (Spanish Corporate Governance Code), referred to in section 9 of the ‘Corporate governance’ chapter and to which Banco Santander is subject, is publicly available on the website of the CNMV (Comisión Nacional del Mercado de Valores), https://www.cnmv.es/ DocPortal/Publicaciones/CodigoGov/CBG\_2020\_ENen.PDF. 1.2. Branches Details of Santander’s branches are set out in note 3 to the consolidated annual accounts. 1.3. Statement on diversity The disclosures below are made pursuant to the FCA's Listing Rule 14.3.30R as Banco Santander shares are listed on the London Stock Exchange and classified under the 'Equity shares (international commercial companies secondary listing)' category of the FCA's Official List. It is worth noting however that Banco Santander is a Spanish-incorporated company whose home securities market is in Spain and that there is no equivalent requirement under Spanish law regarding directors’ ethnic background nor any requirement under which at least one of the following roles (Chair, Chief Executive, Senior Independent Director or Chief Financial Officer) is to be held by a woman. In accordance with the disclosure requirements under the FCA’s Listing Rule 14.3.30R, as at 31 December 2025: (i) 40% of the members of the board of Banco Santander were women; (ii) the role of Chair of the board was held by a woman; and (iii) at least one individual on the board was from a minority ethnic background. There have been no changes to the board between 31 December 2025 and the date of filing this report. Further information can be found in section [4.2 'Board](#i6ecb2a0d58d04b53bfadfa2a833efaa7_511) [composition'](#i6ecb2a0d58d04b53bfadfa2a833efaa7_511) in the 'Corporate governance' chapter of our 2025 annual report. The following tables set out the information required to be disclosed by Banco Santander pursuant to the FCA's UK Listing Rule 14.3.30R(2): Table for reporting on gender identity or sex (UKLR 14 Annex 1R(1)): | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | Number of board members | Percentage of the board | Number of senior positions on the board (CEO, CFO 1, SID and Chair) | Number in executive management 2 | Percentage of executive management | | Men | 9 | 60% | 2 | 3 | 60% | | Women | 6 | 40% | 1 | 2 | 40% | | Not specified/prefer not to say | 0 | 0% | 0 | 0 | 0% | 1. N ote that Banco Santander’s CFO is not a member of the board of directors. 2. We refer to the members of Banco Santander’s Board Executive Committee (please see page 297 of our 2025 Annual Report). Table for reporting on ethnic background (UKLR 14 Annex 1R(2)): | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | | Number of board members | Percentage of the board | Number of senior positions on the board (CEO, CFO, SID and Chair) 1 | Number in executive management | Percentage of executive management | | White British or other White (including minority-white groups) | 11 | 73.3% | — | 3 | 60.0% | | Mixed/Multiple Ethnic Groups | 1 | 6.7% | — | 1 | 20% | | Asian/Asian British | 0 | 0% | — | 0 | 0% | | Black/African/ Caribbean/ Black British | 0 | 0% | — | 0 | 0% | | Other ethnic group, including Arab | 0 | 0% | — | 0 | 0% | | Not specified/prefer not to say | 3 | 20% | — | 1 | 20% | 1. Consent to the reporting on ethnic background has been given by each director on a no-names basis. Since the identity of the three individuals holding senior positions on the board is publicly available, the publication of numerical data in this column would risk identifying the ethnic background of these individuals, as well as those on the board more generally.  In accordance with UKLR 14.3.31R and applicable data protection laws in Spain, we have therefore chosen not to complete this column so as to prevent ethnic background data from being publicly attributed to specific individuals without their consent. Board diversity data is accurate as at the date of filing this report. Data on ethnic background has been supplied by each director and data on gender diversity has been approved unanimously by all board members as included in the annual report of Banco Santander for the year ended 31 December 2025. | | | --- | | | | 914 | 1.4. Important events The following events occurred from 1 January 2026 to 24 February 2026, being the date on which the consolidated financial statements were authorized for issue (see note 1.g to the consolidated financial statements). On 9 January 2026, after obtaining the necessary regulatory approvals and fulfilling the conditions for closing, the Group completed the sale of 49% of the share capital of Santander Bank Polska S.A. and 50% of the share capital of Santander Towarzystwo Funduszy Inwestycyjnych S.A. (TFI, the asset management business in Poland) to Erste Group Bank AG for a total cash amount of approximately EUR 7,000 million. The transaction generated a net capital gain of approximately EUR 1,900 million, which will be recognized in the consolidated income statement for the 2026 financial year. Santander holds the 9.7% of Santander Polska's share capital. The transaction resulted in the loss of effective control over the entity, and therefore, effective as of 9 January 2026, Santander Bank Polska S.A. will cease to be consolidated using the global integration method in the Group's consolidated financial statements from that date forward. Additionally, on 3 February 2026, Banco Santander, S.A. ('Santander') announced that it had reached an agreement to acquire Webster Financial Corporation ('Webster'), the parent company of Webster Bank, N.A., for approximately USD 12,200 million (around EUR 10,300 million). Webster shareholders will receive USD 48.75 in cash and 2.0548 Santander shares for each Webster share, resulting in a total consideration of USD 75 per Webster share. Completion of the transaction is expected to take place in the second half of 2026 subject to the customary conditions for this type of operations, including obtaining the relevant regulatory approvals and the approvals of both Webster's and Santander's shareholders. | | | --- | | | | 915 | 2. Financial statements of Banco #### Santander, S.A. ## Banco Santander, S.A. #### Auditor’s report, Annual accounts and director’s report for the year #### ended #### 31 December 2025 Translation of annual accounts originally issued in Spanish and prepared in accordance with the regulatory financial reporting framework applicable to Banco Santander in Spain (see notes 1 to 50). In the event of a discrepancy, the Spanish- language version prevails. ![Informe Auditoría Cuentas Anuales Individuales Banco Santander 2025_ingles_Página_1.jpg]() ![Informe Auditoría Cuentas Anuales Individuales Banco Santander 2025_ingles_Página_2.jpg]() ![Informe Auditoría Cuentas Anuales Individuales Banco Santander 2025_ingles_Página_3.jpg]() ![Informe Auditoría Cuentas Anuales Individuales Banco Santander 2025_ingles_Página_4.jpg]() ![Informe Auditoría Cuentas Anuales Individuales Banco Santander 2025_ingles_Página_5.jpg]() ![Informe Auditoría Cuentas Anuales Individuales Banco Santander 2025_ingles_Página_6.jpg]() ![Informe Auditoría Cuentas Anuales Individuales Banco Santander 2025_ingles_Página_7.jpg]() ![Informe Auditoría Cuentas Anuales Individuales Banco Santander 2025_ingles_Página_8.jpg]() ![Informe Auditoría Cuentas Anuales Individuales Banco Santander 2025_ingles_Página_9.jpg]() ## Banco Santander, S.A. #### Financial statements for the year ended #### 31 December 2025 Translation of annual accounts originally issued in Spanish and prepared in accordance with the regulatory financial reporting framework applicable to Banco Santander in Spain (see notes 1 to 50). In the event of a discrepancy, the Spanish-language version prevails. 1 Translation of annual accounts originally issued in Spanish and prepared in accordance with the regulatory financial reporting framework applicable to Banco Santander in Spain (see notes 1 to 50). In the event of a discrepancy, the Spanish-language version prevails. ## Banco Santander, S.A. | | | | | | --- | --- | --- | --- | | | | | | | BALANCE SHEETS AS OF 31 DECEMBER 2025 AND 2024 | | | | | EUR Million | | | | | | | | | | --- | --- | --- | --- | | | | | | | ASSETS | Note | 2025 | 2024 A | | CASH, CASH BALANCES AT CENTRAL BANKS AND OTHER DEPOSITS ON DEMAND | 6 | 74,786 | 97,457 | | FINANCIAL ASSETS HELD FOR TRADING | | 181,944 | 160,425 | | Derivatives | 9 & 11 | 46,583 | 52,462 | | Equity instruments | 8 | 21,196 | 16,225 | | Debt securities | 7 | 55,736 | 43,315 | | Loans and advances | | 58,429 | 48,423 | | Central banks | 6 | 657 | 1,239 | | Credit institutions | 6 | 26,349 | 23,428 | | Customers | 10 | 31,423 | 23,756 | | Memorandum items: Lent or delivered as guarantees with disposal or pledge rights | 31 | 55,600 | 27,581 | | NON-TRADING FINANCIAL ASSETS MANDATORILY AT FAIR VALUE THROUGH PROFIT OR LOSS | | 1,923 | 2,127 | | Equity instruments | 8 | 958 | 991 | | Debt securities | 7 | 42 | 204 | | Loans and advances | | 923 | 932 | | Central banks | 6 | — | — | | Credit institutions | 6 | — | — | | Customers | 10 | 923 | 932 | | Memorandum items: Lent or delivered as guarantees with disposal or pledge rights | 31 | — | 30 | | FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | | 4,898 | 4,826 | | Debt securities | 7 | — | — | | Loans and advances | | 4,898 | 4,826 | | Central banks | 6 | — | — | | Credit institutions | 6 | 557 | 580 | | Customers | 10 | 4,341 | 4,246 | | Memorandum items: Lent or delivered as guarantees with disposal or pledge rights | 31 | — | — | | FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME | | 15,720 | 15,312 | | Equity instruments | 8 & 25 | 1,283 | 1,245 | | Debt securities | 7 & 25 | 5,349 | 8,873 | | Loans and advances | | 9,088 | 5,194 | | Central banks | 6 | — | — | | Credit institutions | 6 | 839 | 32 | | Customers | 10 | 8,249 | 5,162 | | Memorandum items: Lent or delivered as guarantees with disposal or pledge rights | 31 | 2,154 | 2,148 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2 | | | | | | --- | --- | --- | --- | | | | | | | ASSETS | Note | 2025 | 2024 A | | FINANCIAL ASSETS AT AMORTIZED COST | | 434,429 | 392,443 | | Debt securities | 7 | 83,585 | 65,917 | | Loans and advances | | 350,844 | 326,526 | | Central banks | 6 | 223 | 218 | | Credit institutions | 6 | 40,882 | 34,711 | | Customers | 10 | 309,739 | 291,597 | | Memorandum items: Lent or delivered as guarantees with disposal or pledge rights | 31 | 30,025 | 15,277 | | HEDGING DERIVATIVES | 32 | 1,359 | 1,917 | | CHANGES IN THE FAIR VALUE OF HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | | 3 | (17) | | INVESTMENTS | 13 | 98,316 | 100,045 | | Group entities | | 96,067 | 97,674 | | Joint venture entities | | 283 | 322 | | Associated entities | | 1,966 | 2,049 | | TANGIBLE ASSETS | 15 | 5,825 | 6,219 | | Property, plant and equipment | | 5,430 | 6,046 | | For own-use | | 4,537 | 5,144 | | Leased out under an operating lease | | 893 | 902 | | Investment property | | 395 | 173 | | Of which: Leased out under an operating lease | | 395 | 173 | | Memorandum items: Acquired in financial leasing | | 559 | 2,371 | | INTANGIBLE ASSETS | 16 | 749 | 830 | | Goodwill | | 147 | 209 | | Other intangible assets | | 602 | 621 | | TAX ASSETS | 24 | 10,148 | 10,353 | | Current tax assets | | 4,392 | 4,332 | | Deferred tax assets | | 5,756 | 6,021 | | OTHER ASSETS | | 2,188 | 2,637 | | Insurance contracts linked to pensions | 14, 17 & 23 | 240 | 267 | | Inventories | 17 | — | — | | Other | 17 | 1,948 | 2,370 | | NON-CURRENT ASSETS HELD FOR SALE | 12 | 4,495 | 266 | | TOTAL ASSETS | | 836,783 | 794,840 | A. Presented for comparison purposes only (note 1.d). The accompanying notes 1 to 50  and appendices are an integral part of the balance sheet as of 31 December 2025. 3 Translation of annual accounts originally issued in Spanish and prepared in accordance with the regulatory financial reporting framework applicable to Banco Santander in Spain (see notes 1 to 50). In the event of a discrepancy, the Spanish-language version prevails. | | | | | | --- | --- | --- | --- | | | | | | | BALANCE SHEETS AS OF 31 DECEMBER 2025 AND 2024 | | | | | EUR Million | | | | | | | | | | --- | --- | --- | --- | | | | | | | LIABILITIES | Note | 2025 | 2024 A | | FINANCIAL LIABILITIES HELD FOR TRADING | | 136,884 | 119,149 | | Derivatives | 9 & 11 | 41,524 | 46,121 | | Short positions | 9 | 30,694 | 25,518 | | Deposits | | 64,666 | 47,510 | | Central banks | 18 | 5,465 | 9,123 | | Credit institutions | 18 | 30,602 | 24,884 | | Customers | 19 | 28,599 | 13,503 | | Marketable debt securities | 20 | — | — | | Other financial liabilities | 22 | — | — | | FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | | 38,710 | 33,257 | | Deposits | | 37,123 | 32,188 | | Central banks | 18 | 3,086 | 1,774 | | Credit institutions | 18 | 1,521 | 2,107 | | Customers | 19 | 32,516 | 28,307 | | Marketable debt securities | 20 | 1,587 | 1,069 | | Other financial liabilities | 22 | — | — | | Memorandum items: Subordinated liabilities | | — | — | | FINANCIAL LIABILITIES AT AMORTIZED COST | | 566,794 | 552,080 | | Deposits | | 418,742 | 392,720 | | Central banks | 18 | 7,522 | 5,117 | | Credit institutions | 18 | 34,678 | 38,691 | | Customers | 19 | 376,542 | 348,912 | | Marketable debt securities | 20 | 137,997 | 146,113 | | Other financial liabilities | 22 | 10,055 | 13,247 | | Memorandum items: Subordinated liabilities | 20 & 21 | 21,774 | 28,142 | | HEDGING DERIVATIVES | 32 | 2,284 | 2,516 | | CHANGES IN THE FAIR VALUE OF HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | | (20) | (19) | | PROVISIONS | 23 | 2,980 | 3,190 | | Pensions and other post-retirement obligations | | 578 | 647 | | Other long term employee benefits | | 744 | 699 | | Taxes and other legal contingencies | | 815 | 762 | | Contingent liabilities and commitments | | 179 | 175 | | Other provisions | | 664 | 907 | | TAX LIABILITIES | 24 | 2,672 | 2,168 | | Current tax liabilities | | 633 | 190 | | Deferred tax liabilities | | 2,039 | 1,978 | | OTHER LIABILITIES | 17 | 4,137 | 4,167 | | LIABILITIES ASSOCIATED WITH NON-CURRENT ASSETS HELD FOR SALE | 12 | — | — | | TOTAL LIABILITIES | | 754,441 | 716,508 | A.  Presented for comparison purposes only (note 1.d). The accompanying notes 1 to 50 and appendices are an integral part of the balance sheet as of 31 December 2025. 4 Translation of annual accounts originally issued in Spanish and prepared in accordance with the regulatory financial reporting framework applicable to Banco Santander in Spain (see notes 1 to 50). In the event of a discrepancy, the Spanish-language version prevails. | | | | | | --- | --- | --- | --- | | | | | | | BALANCE SHEETS AS OF 31 DECEMBER 2025 AND 2024 | | | | | EUR Million | | | | | | | | | | --- | --- | --- | --- | | | | | | | EQUITY | Note | 2025 | 2024 A | | SHAREHOLDERS’ EQUITY | 26 | 83,653 | 79,887 | | CAPITAL | 27 | 7,345 | 7,576 | | Called up paid capital | | 7,345 | 7,576 | | Unpaid capital which has been called up | | — | — | | Memorandum items: Uncalled up capital | | — | — | | SHARE PREMIUM | 28 | 36,792 | 40,079 | | EQUITY INSTRUMENTS ISSUED OTHER THAN CAPITAL | 30 | — | — | | Equity component of compound financial instruments | | — | — | | Other equity instruments issued | | — | — | | OTHER EQUITY INSTRUMENTS | 30 | 417 | 217 | | ACCUMULATED RETAINED EARNINGS | 29 | 31,272 | 24,345 | | REVALUATION RESERVES | | — | — | | OTHER RESERVES | 29 | (1,587) | (899) | | (-) OWN SHARES | 30 | — | — | | RESULTS FOR THE PERIOD | 4 | 11,113 | 10,101 | | (-) INTERIM DIVIDENDS | 4 | (1,699) | (1,532) | | OTHER COMPREHENSIVE INCOME OR LOSS | | (1,311) | (1,555) | | ITEMS THAT WILL NOT BE RECLASSIFIED TO PROFIT OR LOSS | 25 | (1,325) | (1,669) | | Actuarial gains or - losses in defined benefit pension plans | | (484) | (827) | | Non-current assets and disposal groups that have been classified as held for sale | | — | — | | Changes in the fair value of equity instruments measured at fair value with changes in other comprehensive income | | (822) | (919) | | Ineffectiveness of fair value hedges of equity instruments measured at fair value with changes in other comprehensive income | | — | — | | Changes in the fair value of equity instruments measured at fair value with changes in other comprehensive income [hedged item] | | 203 | 279 | | Changes in the fair value of equity instruments measured at fair value with changes in other comprehensive income [hedging instrument] | | (203) | (279) | | Changes in the fair value of financial liabilities at fair value through profit or loss attributable to changes in credit risk | | (19) | 77 | | ITEMS THAT MAY BE RECLASSIFIED TO PROFIT OR LOSS | 25 | 14 | 114 | | Hedge of net investments in foreign operations [effective part] | | 283 | — | | Currency conversion | | (299) | — | | Hedging derivatives. Cash flow hedge reserve [effective part] | | 35 | 104 | | Changes in the fair value of debt instruments measured at fair value with changes in other comprehensive income | | (5) | 10 | | Hedging instruments [non-designated items] | | — | — | | Non-current assets and disposal groups that have been classified as held for sale | | — | — | | TOTAL EQUITY | | 82,342 | 78,332 | | TOTAL LIABILITIES AND EQUITY | | 836,783 | 794,840 | | MEMORANDUM ITEMS: OFF BALANCE SHEET AMOUNTS | 31 | | | | Loan commitments granted | | 149,881 | 141,976 | | Financial guarantees granted | | 22,138 | 18,888 | | Other commitments granted | | 121,415 | 108,829 | A.  Presented for comparison purposes only (note 1.d). The accompanying notes 1 to 50 and appendices are an integral part of the balance sheet as of 31 December 2025. 5 Translation of annual accounts originally issued in Spanish and prepared in accordance with the regulatory financial reporting framework applicable to Banco Santander in Spain (see notes 1 to 50). In the event of a discrepancy, the Spanish-language version prevails. | | | | | | --- | --- | --- | --- | | | | | | | INCOME STATEMENTS FOR THE YEARS ENDED 31 DECEMBER 2025 AND 2024 | | | | | EUR Million | | | | | | | | | | --- | --- | --- | --- | | | | | | | | (Debit) Credit | | | | | Note | 2025 | 2024 A | | Interest income | 34 | 24,672 | 27,027 | | Financial assets at fair value through other comprehensive income | | 626 | 619 | | Financial assets at amortized cost | | 16,193 | 18,180 | | Other interest income | | 7,853 | 8,228 | | Interest expense | 35 | (18,170) | (20,112) | | Expenses for capital stock repayable on demand | | — | — | | Interest income/(changes) | | 6,502 | 6,915 | | Dividend income | 36 | 6,691 | 7,725 | | Commission income | 37 | 4,148 | 3,791 | | Commission expense | 38 | (1,008) | (866) | | Gains or losses on financial assets and liabilities not measured at fair value through profit or loss, net | 39 | 100 | (97) | | Financial assets at amortized cost | | (34) | (47) | | Other financial assets and liabilities | | 134 | (50) | | Gains or losses on financial assets and liabilities held for trading, net | 39 | 494 | 704 | | Reclassification of financial assets at fair value through other comprehensive income | | — | — | | Reclassification of financial assets at amortized cost | | — | — | | Other gains (losses) | | 494 | 704 | | Gains or losses on non-trading financial assets and liabilities mandatorily at fair value through profit or loss, net | 39 | 80 | 73 | | Reclassification of financial assets at fair value through other comprehensive income | | — | — | | Reclassification of financial assets at amortized cost | | — | — | | Other gains (losses) | | 80 | 73 | | Gains or losses on financial assets and liabilities measured at fair value through profit or loss, net | 39 | (2) | 350 | | Gains or losses from hedge accounting, net | 39 | (16) | (6) | | Exchange differences, net | 40 | 217 | (106) | | Other operating income | 41 | 434 | 575 | | Other operating expenses | 41 | (234) | (625) | | Total income | | 17,406 | 18,433 | | Administrative expenses | | (5,419) | (5,293) | | Staff costs | 42 | (3,324) | (3,210) | | Other general administrative expenses | 43 | (2,095) | (2,083) | | Depreciation and amortisation cost | 15 & 16 | (535) | (598) | | Provisions or reversal of provisions, net | 23 | (587) | (659) | | Impairment or reversal of impairment at financial assets not measured at fair value through profit or loss and net gains or losses from changes | 7 &10 | (1,162) | (1,334) | | Financial assets at fair value through other comprehensive income | | (25) | (1) | | Financial assets at amortized cost | | (1,137) | (1,333) | | Impairment or reversal of impairment of investments in subsidiaries, joint ventures and associates, net | 44 | 1,498 | (241) | | Impairment or reversal on non-financial assets, net | | (13) | (3) | | Tangible assets | 15 & 44 | 3 | (3) | | Intangible assets | 16 & 44 | (16) | — | | Others | | — | — | | Gain or losses on non-financial assets, net | 45 | 11 | 10 | | | | | | 6 | | | | | | --- | --- | --- | --- | | | | | | | | (Debit) Credit | | | | | Note | 2025 | 2024 A | | Negative goodwill recognised in results | | — | — | | Gains or losses on non-current assets held for sale not classified as discontinued operations | 12 & 46 | (34) | (58) | | Operating profit/(loss) before tax | | 11,165 | 10,257 | | Tax expense or income from continuing operations | 24 | (1,073) | (1,091) | | Profit/(loss) from continuing operations | | 10,092 | 9,166 | | Profit/(loss) after tax from discontinued operations | | 1,021 | 935 | | Profit/(loss) for the year | | 11,113 | 10,101 | A. Presented for comparison purposes only (note 1.d). The accompanying notes 1 to 50 and appendices are an integral part of the income statement for the year ended 31 December 2025. 7 Translation of annual accounts originally issued in Spanish and prepared in accordance with the regulatory financial reporting framework applicable to Banco Santander in Spain (see notes 1 to 50). In the event of a discrepancy, the Spanish-language version prevails. | | | | | | --- | --- | --- | --- | | | | | | | STATEMENTS OF RECOGNISED INCOME AND EXPENSE  FOR THE YEARS ENDED 31 DECEMBER 2025 AND 2024 | | | | | EUR Million | | | | | | | | | | --- | --- | --- | --- | | | | | | | | Note | 2025 | 2024 A | | PROFIT (LOSS) FOR THE YEAR | | 11,113 | 10,101 | | OTHER RECOGNISED INCOME AND EXPENSES | 25 | (80) | 731 | | Items that will not be reclassified to profit or loss | | 20 | 425 | | Actuarial gains and losses on defined benefit pension plans | | 30 | (16) | | Other recognised income and expense of investments in subsidiaries, joint venture and associates | | — | — | | Changes in the fair value of equity instruments measured at fair value through other comprehensive income, net | | 100 | 262 | | Gains or losses resulting from the accounting for hedges of equity instruments measured at fair value through other comprehensive income, net | | — | — | | Changes in the fair value of equity instruments measured at fair value through other comprehensive income  (hedged item) | | (76) | 20 | | Changes in the fair value of equity instruments measured at fair value through other comprehensive income  (hedging instrument) | | 76 | (20) | | Changes in the fair value of financial liabilities at fair value through profit or loss attributable to changes in credit risk | | (137) | 247 | | Income tax relating to items that will not be reclassified | 24 | 27 | (68) | | Items that may be reclassified to profit or loss | | (100) | 306 | | Hedges of net investments in foreign operations (effective portion) | | 283 | — | | Revaluation gains (losses) | | 283 | — | | Amounts transferred to income statement | | — | — | | Other reclassifications | | — | — | | Exchanges differences | | (299) | — | | Revaluation gains (losses) | | (299) | — | | Amounts transferred to income statement | | — | — | | Other reclassifications | | — | — | | Cash flow hedges (effective portion) | | (100) | 409 | | Revaluation gains or (losses) | | (79) | 140 | | Amounts transferred to income statement | | (21) | 269 | | Transferred to initial carrying amount of hedged items | | — | — | | Other reclassifications | | — | — | | Hedging instruments (items not designated) | | — | — | | Revaluation gains (losses) | | — | — | | Amounts transferred to income statement | | — | — | | Other reclassifications | | — | — | | Debt instruments at fair value with changes in other comprehensive income | | (26) | 29 | | Revaluation gains (losses) | | 37 | (54) | | Amounts transferred to income statement | | (63) | 83 | | Other reclassifications | | — | — | | Non-current assets held for sale | | — | — | | Revaluation gains (losses) | | — | — | | Amounts transferred to income statement | | — | — | | Other reclassifications | | — | — | | Income tax related to items that may be reclassified to profit or loss | 24 | 42 | (132) | | Total recognised income and expenses for the year | | 11,033 | 10,832 | A. Presented for comparison purposes only (note 1.d). The accompanying notes 1 to 50 and appendices are an integral part of the statement of recognized income and expenses for the year ended 31 December 2025. 8 Translation of annual accounts originally issued in Spanish and prepared in accordance with the regulatory financial reporting framework applicable to Banco Santander in Spain (see notes 1 to 50). In the event of a discrepancy, the Spanish-language version prevails. | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | STATEMENTS OF CHANGES IN TOTAL EQUITY FOR THE YEARS ENDED 31 DECEMBER 2025 AND 2024 | | | | | | | | | | | | | | EUR Million | | | | | | | | | | | | | | | Capital | Share premium | Equity instruments issued (not capital) | Other equity instruments | Accumulated retained earnings | Revaluation reserves | Other reserves | (-) Own Equity shares | Result for the period | (-) Interim dividends | Other comprehensive income | Total | | Balance at 31 December 2024A | 7,576 | 40,079 | — | 217 | 24,345 | — | (899) | — | 10,101 | (1,532) | (1,555) | 78,332 | | Adjustments due to errors | — | — | — | — | — | — | — | — | — | — | — | — | | Adjustments due to changes in accounting policies | — | — | — | — | — | — | — | — | — | — | — | — | | Opening balance at 1 January 2025 A | 7,576 | 40,079 | — | 217 | 24,345 | — | (899) | — | 10,101 | (1,532) | (1,555) | 78,332 | | Total recognised income and expense | — | — | — | — | — | — | — | — | 11,113 | — | (80) | 11,033 | | Other changes in equity | (231) | (3,287) | — | 200 | 6,927 | — | (688) | — | (10,101) | (167) | 324 | (7,023) | | Issuance of ordinary shares | — | — | — | — | — | — | — | — | — | — | — | — | | Issuance of preferred shares | — | — | — | — | — | — | — | — | — | — | — | — | | Issuance of other financial instruments | — | — | — | — | — | — | — | — | — | — | — | — | | Maturity of other financial instruments | — | — | — | — | — | — | — | — | — | — | — | — | | Conversion of financial liabilities into equity | — | — | — | — | — | — | — | — | — | — | — | — | | Capital reduction | (231) | (3,287) | — | — | — | — | 231 | 3,287 | — | — | — | — | | Dividends | — | — | — | — | (1,642) | — | — | — | — | (1,699) | — | (3,341) | | Purchase of equity instruments | — | — | — | — | — | — | — | (3,865) | — | — | — | (3,865) | | Disposal of equity instruments | — | — | — | — | — | — | — | 578 | — | — | — | 578 | | Transfer from equity to liabilities | — | — | — | — | — | — | — | — | — | — | — | — | | Transfer from liabilities to equity | — | — | — | — | — | — | — | — | — | — | — | — | | Transfers between equity items | — | — | — | — | 8,569 | — | (324) | — | (10,101) | 1,532 | 324 | — | | Increases (decreases) due to business combinations | — | — | — | — | — | — | — | — | — | — | — | — | | Share-based payment | — | — | — | (67) | — | — | — | — | — | — | — | (67) | | Others increases or (-) decreases of the equity | — | — | — | 267 | — | — | (595) | — | — | — | — | (328) | | Balance at 31 December 2025 | 7,345 | 36,792 | — | 417 | 31,272 | — | (1,587) | — | 11,113 | (1,699) | (1,311) | 82,342 | A.  Presented for comparison purposes only (note 1.d). The accompanying notes 1 to 50 and appendices are an integral part of the statement of changes in total equity for the year ended 31 December 2025. 9 Translation of annual accounts originally issued in Spanish and prepared in accordance with the regulatory financial reporting framework applicable to Banco Santander in Spain (see notes 1 and 50). In the event of a discrepancy, the Spanish-language version prevails. | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | STATEMENTS OF CHANGES IN TOTAL EQUITY FOR THE YEARS ENDED 31 DECEMBER 2025 AND 2024 | | | | | | | | | | | | | | EUR Million | | | | | | | | | | | | | | | Capital | Share premium | Equity instruments issued (not capital) | Other equity instruments | Accumulated retained earnings | Revaluation reserves | Other reserves | (-) Own Equity shares | Result for the period | (-) Interim dividends | Other comprehensive income | Total | | Balance at 31 December 2023A | 8,092 | 44,373 | 720 | 195 | 17,889 | — | (706) | (1,039) | 9,239 | (1,298) | (2,591) | 74,874 | | Adjustments due to errors | — | — | — | — | — | — | — | — | — | — | — | — | | Adjustments due to changes in accounting policies | — | — | — | — | — | — | — | — | — | — | — | — | | Opening balance at 1 January 2024 A | 8,092 | 44,373 | 720 | 195 | 17,889 | — | (706) | (1,039) | 9,239 | (1,298) | (2,591) | 74,874 | | Total recognised income and expense | — | — | — | — | — | — | — | — | 10,101 | — | 731 | 10,832 | | Other changes in equity | (516) | (4,294) | (720) | 22 | 6,456 | — | (193) | 1,039 | (9,239) | (234) | 305 | (7,374) | | Issuance of ordinary shares | — | — | — | — | — | — | — | — | — | — | — | — | | Issuance of preferred shares | — | — | — | — | — | — | — | — | — | — | — | — | | Issuance of other financial instruments | — | — | — | — | — | — | — | — | — | — | — | — | | Maturity of other financial instruments | — | — | (751) | — | — | — | — | — | — | — | — | (751) | | Conversion of financial liabilities into equity | — | — | — | — | — | — | — | — | — | — | — | — | | Capital reduction | (516) | (4,294) | — | — | — | — | 516 | 4,294 | — | — | — | — | | Dividends | — | — | — | — | (1,485) | — | — | — | — | (1,532) | — | (3,017) | | Purchase of equity instruments | — | — | — | — | — | — | — | (3,740) | — | — | — | (3,740) | | Disposal of equity instruments | — | — | — | — | — | — | — | 485 | — | — | — | 485 | | Transfer from equity to liabilities | — | — | — | — | — | — | — | — | — | — | — | — | | Transfer from liabilities to equity | — | — | — | — | — | — | — | — | — | — | — | — | | Transfers between equity items | — | — | — | — | 7,941 | — | (305) | — | (9,239) | 1,298 | 305 | — | | Increases (decreases) due to business combinations | — | — | — | — | — | — | — | — | — | — | — | — | | Share-based payment | — | — | — | (62) | — | — | — | — | — | — | — | (62) | | Other increases or (-) decreases of the equity | — | — | 31 | 84 | — | — | (404) | — | — | — | — | (289) | | Balance at 31 December 2024A | 7,576 | 40,079 | — | 217 | 24,345 | — | (899) | — | 10,101 | (1,532) | (1,555) | 78,332 | A. Presented for comparison purposes only (note 1.d). The accompanying notes 1 to 50 and appendices are an integral part of the statements of changes in total equity for the year ended 31 December 2025. 10 Translation of annual accounts originally issued in Spanish and prepared in accordance with the regulatory financial reporting framework applicable to Banco Santander in Spain (see notes 1 and 50). In the event of a discrepancy, the Spanish-language version prevails. | | | | | | --- | --- | --- | --- | | | | | | | STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED 31 DECEMBER 2025 AND 2024 | | | | | EUR Million | | | | | | | | | | --- | --- | --- | --- | | | | | | | | Note | 2025 | 2024 A | | A. CASH FLOWS FROM OPERATING ACTIVITIES | | (10,324) | (31,135) | | Profit or loss for the year | 4 | 11,113 | 10,101 | | Adjustments made to obtain the cash flows from operating activities | | (1,119) | (4,439) | | Depreciation and amortization cost | 15 & 16 | 535 | 598 | | Other adjustments | | (1,654) | (5,037) | | Net increase/(decrease) in operating assets | | 60,570 | 63,685 | | Financial assets held-for-trading | | 21,520 | 46,227 | | Non-trading financial assets mandatorily at fair value through profit or loss | | (205) | (177) | | Financial assets designated at fair value through profit or loss | | 72 | (980) | | Financial assets at fair value through other comprehensive income | | 300 | 5,309 | | Financial assets at amortized cost | | 43,432 | 14,701 | | Other operating assets | | (4,549) | (1,395) | | Net increase/(decrease) in operating liabilities | | 41,114 | 27,479 | | Financial liabilities held-for-trading | | 17,736 | 23,097 | | Financial liabilities designated at fair value through profit or loss | | 5,318 | (3,921) | | Financial liabilities at amortized cost | | 21,100 | 11,839 | | Other operating liabilities | | (3,040) | (3,536) | | Income tax recovered/(paid) | | (862) | (591) | | B. CASH FLOWS FROM INVESTING ACTIVITIES | | 4,979 | 6,629 | | Payments | | 4,231 | 2,915 | | Tangible assets | 15 | 447 | 438 | | Intangible assets | 16 | 196 | 221 | | Investments | 13 | 3,588 | 2,256 | | Subsidiaries and other business units | | — | — | | Non-current assets held for sale and associated liabilities | | — | — | | Other payments related to investing activities | | — | — | | Proceeds | | 9,210 | 9,544 | | Tangible assets | 15 | 205 | 164 | | Intangible assets | 16 | — | — | | Investments | 13 & 36 | 8,788 | 9,226 | | Subsidiaries and other business units | | — | — | | Non-current assets held for sale and associated liabilities | | 217 | 154 | | Other proceeds related to investing activities | | — | — | | C. CASH FLOW FROM FINANCING ACTIVITIES | | (13,227) | (5,313) | | Payments | | 15,657 | 11,423 | | Dividends | 4 | 3,341 | 3,017 | | Subordinated liabilities | 21 | 8,310 | 3,615 | | Redemption of own equity instruments | | — | 751 | | Acquisition of own equity instruments | | 3,865 | 3,740 | | Other payments related to financing activities | | 141 | 300 | | Proceeds | | 2,430 | 6,110 | | Subordinated liabilities | 21 | 1,852 | 5,625 | | Issuance of own equity instruments | | — | — | | Disposal of own equity instruments | | 578 | 485 | | Other proceeds related to financing activities | | — | — | | D. EFFECT OF FOREIGN EXCHANGE RATE CHANGES | | (4,099) | 2,256 | | | | | | 11 | | | | | | --- | --- | --- | --- | | | | | | | | Note | 2025 | 2024 A | | E. NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | | (22,671) | (27,563) | | F. CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR | | 97,457 | 125,020 | | G. CASH AND CASH EQUIVALENTS AT END OF THE YEAR | | 74,786 | 97,457 | | MEMORANDUM ITEMS | | | | | COMPONENTS OF CASH AND CASH EQUIVALENTS AT END OF THE YEAR | | | | | Cash | | 1,278 | 1,318 | | Cash equivalents at central banks | | 72,163 | 94,613 | | Other financial assets | | 1,345 | 1,526 | | TOTAL OF CASH AND CASH EQUIVALENTS AT END OF THE YEAR | | 74,786 | 97,457 | A. Presented for comparison purposes only (note 1.d). The accompanying notes 1 to 50 and appendices are an integral part of the statement of cash flows for the year ended 31 December 2025. 12 Translation of annual accounts originally issued in Spanish and prepared in accordance with the regulatory financial reporting framework applicable to Banco Santander in Spain (see notes 1 to 50). In case of discrepancy, the Spanish version prevails. ## Banco Santander, S.A. Notes to the financial statements (annual accounts) for the year ended 31 December 2025 1. Introduction, basis of #### presentation of the financial #### statements (annual accounts) #### and other information #### a) Introduction Banco Santander, S.A. ('the Bank' or 'Banco Santander'), is a private-law entity subject to the rules and regulations applicable to banks operating in Spain, where it was constituted and currently maintains its legal domicile, which is paseo de Pereda, numbers 9 to 12, 39004, Santander, Spain. The principal headquarters of Banco Santander are located in Ciudad Grupo Santander, Avenida Cantabria s/ n, 28660, Boadilla del Monte, Madrid, Spain. The corporate purpose of Banco Santander, S.A. mainly entails carrying out all kinds of activities, operations and services inherent to the banking business in general and permitted by current legislation, and the acquisition, holding, enjoyment and disposal of all kinds of securities. In addition to the operations carried on directly by it, Banco Santander is the head of a group of subsidiaries that engage in various business activities and which compose, together with it, Grupo Santander ('Grupo Santander' or 'the Group'). Therefore, Banco Santander is obliged to prepare, in addition to its own separate financial statements, the Group's consolidated financial statements, which also include the interests in joint ventures and investments in associates. Banco Santander financial statements for 2024 were approved by the shareholders at the group´s annual general meeting on 4 April 2025. The Group's 2025 consolidated financial statements, the financial statements of Banco Santander and of substantially all the Group companies have not been approved yet by their shareholders at the respective annual general meetings. However, Banco Santander board of directors considers that the aforementioned financial statements will be approved without any significant changes. Appendix VII includes the list of agents that assist Banco Santander on the performance of its business activities in Spain. #### b) Basis of presentation of the financial statements #### (annual accounts) Banco Santander financial statements for the year ended 2025 have been authorised by the Bank’s directors (at the Board of Directors meeting on 24 February, 2026 ) in accordance with Bank of Spain Circular 4/2017 and subsequent amendments, and Spanish corporate and commercial law applicable to the Bank, using the accounting policies and measurement criteria applied by the Bank as set forth in note 2, accordingly, they present fairly the Bank’s equity and financial position at 31 December 2025 and 2024, results of its operations, recognized revenue and expense, changes in total equity and cash flows pertaining 2025 and 2024. These annual accounts have been prepared on the basis of the accounting records held by Banco Santander. The notes to the financial statements contain additional information to that presented in the balance sheet, income statement, statement of recognised income and expense, statement of changes in total equity and statement of cash flows. The notes provide, in a clear, relevant, reliable and comparable manner, narrative descriptions and breakdowns of these statements. The figures of the annual accounts are presented in millions of euros unless another alternative monetary unit is indicated, rounded to the nearest million unit. #### Adoption of new standards and related interpretations The following is a summary of the main Bank of Spain Circulars issued that became applicable to Banco Santander in financial year 2025: On 29 December, Circular 1/2025, dated 19 December, issued by the Bank of Spain, was published. This Circular amends Circular 4/2017, of 27 November, addressed to credit institutions, on public and confidential financial reporting rules and financial statement templates, and Circular 1/2013, of 24 May, concerning the information provided through the Central Credit Register. 13 This Circular amends Circular 4/2017, of 27 November, in order to maintain appropriate alignment with the International Financial Reporting Standards as adopted by the European Union (EU IFRSs), in accordance with the provisions of the Spanish Commercial Code, thereby avoiding the application of divergent accounting criteria between the separate and consolidated financial statements, with a phased entry into force starting in 2026. Furthermore, the Circular revises the requirements relating to credit risk coverage for country risk, introduces minor clarifications and technical corrections, and updates the confidential financial statement templates in order to adapt them to the supervisory and information needs of the Bank of Spain. No significant effects on the Bank’s annual financial statements have arisen from the application of this Circular, as its adoptions will become effective from 1 January 2026. #### c)  Use of accounting estimates The results and the determination of  equity are sensitive to the accounting policies, measurement bases and estimates used by Banco Santander in preparing the financial statements. The main accounting policies and measurement bases are set forth in note 2. In the financial statements estimates were occasionally made by the senior management of Banco Santander in order to quantify certain of the assets, liabilities, income, expenses and obligations reported herein. These estimates, which were made on the basis of the best information available, relate basically to the following: • The impairment losses on certain assets: it applies to financial assets at fair value through other comprehensive income, financial assets at amortised cost, non-current assets held for sale, investments, tangible assets and intangible assets ( see notes 6, 7, 10, 12, 13, 15, 16 and 50). • The assumptions used in the actuarial calculation of the post-employment benefit liabilities and commitments and other obligations (see note 23). • The useful life of the tangible and intangible assets (see notes 15 and 16). • Assessment of the impairment of investments in group, joint venture and associated entities (see note 13). • The measurement of the impairment in goodwill (see note 16). • The calculation of provisions and the consideration of contingent liabilities (see note 23). • The fair value of certain unquoted assets and liabilities (see notes 6, 7, 8, 9, 10, 11, 18, 19 and 20). • The recoverability of deferred tax assets (see note 24). • The fair value of the identifiable assets acquired and the liabilities assumed in business combinations (see note 3). To update the previous estimates, the Bank's management has taken into account the current macroeconomic scenario, characterized by persistent geopolitical tensions and changing financial conditions, as well as the evolution of monetary and fiscal policies in major economies. The analysis also considers developments in interest rates, credit spreads, and currency movements, along with labor market trends in the geographies where the Bank operates. The Bank´s management has evaluated in particular the uncertainties caused by the current environment in relation to credit risk, maintaining active oversight of clients in geographies and sectors more exposed to international trade tensions, global geopolitical uncertainty and the impact of public debt containment policies or fiscal stimulus measures, liquidity and market risks, taking into account the best available information, to estimate the impact on the credit portfolio's impairment provision, and in the debt instruments' interest rates and valuation, developing in the notes the main estimates made during the period ended December 31, 2025 (see notes 10, 13, 48 and 50). Although these estimates have been made on the basis of the best information available at the end of the year 2025, and considering information updated at the date of preparation of these annual accounts, it is possible that events that may take place in the future may make it necessary to modify them (upwards or downwards) in the coming years, which would be done, if appropriate, in a prospective manner, recognising the effects of the change in estimate in the corresponding income statement. #### d) Comparative information The information contained in the 2025 annual accounts for the 2024 financial year is presented, solely and exclusively, for comparison with the information relating to 2025. The information in the income statement from 2024 has been restated, as a result of the agreement for the sale of Santander Bank Polska S.A. by the Bank, as required by IFRS 5(see notes 3 and 12, as well as the rest of the notes of the profit and loss account). 14 #### e) Capital management i. Regulatory and economic capital Credit institutions must comply with a set of minimum capital and liquidity requirements. These minimum requirements are regulated by the European Capital Requirements Regulation (CRR), which is directly applicable within the Spanish legal framework, and by the Capital Requirements Directive (CRD). On 19 June 2024, the final texts of the update to the banking package were published in the Official Journal of the European Union: Regulation (EU) 2024/1623 (hereinafter, CRR 3), which amends the CRR with regard to requirements for credit risk, credit valuation adjustment risk, operational risk, market risk and the floor on risk-weighted assets (known as the output floor), as well as Directive (EU) 2024/1619 (hereinafter, CRD VI), which amends the CRD as regards supervisory powers, sanctions, third-country branches, and environmental, social and governance risks. The update to the banking package aims, on the one hand, to implement the final Basel III reforms and, on the other, to strengthen the harmonisation of banking supervision within the European Union (EU). CRR 3, applicable since 1 January 2025, introduce greater risk sensitivity into standardised approaches, reduce the variability of risk-weighted assets among banks using internal models to calculate capital requirements, and enhance comparability across banks. Under CRD VI, the ambition to achieve more robust supervision and to safeguard financial stability is reflected in a set of rules affecting fit-and-proper requirements, an extended scope resulting from the revision of certain definitions, and new provisions regarding the establishment of third-country branches in the EU, with the aim of achieving greater regulatory harmonisation and improved supervision of this type of entity. Although most CRR 3 provisions apply since 1 January 2025, for certain provisions the regulator has established a gradual implementation (phase-in) period until 2030 in order to give the industry sufficient time to build up the capital required to meet the requirements on a fully loaded basis. Regarding Market Risk, the European Commission and the European Parliament have approved an additional 12-month delay to the entry into force of the new market risk capital framework, or FRTB, until 1 January 2027. Beyond this date, the CRR 3 does not allow for any further delay, as postponements are limited to two years. This delay also covers other provisions, such as the separation between the trading book and the banking book, the internal risk transfer regime, etc. The CRR 3/CRD VI package contains 140 mandates for the EBA to develop Level 2 or Level 3 legislation (regulatory technical standards, implementing technical standards and guidelines—RTS, ITS and GL, for their acronyms) and to issue opinions and reports to further specify certain aspects of the regulation. In this context, the EBA published its roadmap (EBA Roadmap) at the end of 2023, structuring the implementation of the banking package around four sequential phases, under which the authority will address the various mandates in an orderly manner based on their latest legal application dates (up to four years after the entry into force of CRR 3 and CRD VI). In addition, at the end of 2024, the EBA published its 2025 work programme, setting out the guidelines for addressing these mandates during the year. This has resulted in the publication of various consultations throughout the year on RTS, ITS and Guidelines, such as, for example: – Regulatory Technical Standards (RTS) on off- balance-sheet exposures and unconditionally cancellable commitments – Regulatory Technical Standards (RTS) on material changes to IRB models and model extensions – Revision of the Guidelines on the revised definition of default – Regulatory Technical Standards (RTS) and Implementing Technical Standards (ITS) on operational risk In its 2025 Work Programme, the EBA undertook, among other initiatives, the revision of the SREP Guidelines, the consultation for which was published on 24 October, with the aim of updating them based on three pillars: legislative changes (CRR 3 and CRD VI, IRRBB/CSRBB, DORA, etc.), lessons learned, and structural changes intended to improve the usability of the Guidelines. The consultation period was set to run until early February 2026, and following the conclusion of the consultation process, the Guidelines are expected to enter into force on 1 January 2027. On 28 July 2025, the ECB published a revised version of its Guide to Internal Models, with the objective of reflecting the regulatory changes introduced by CRR 3 in relation to internal models for credit, counterparty credit and market risk; clarifying supervisory expectations for internal models that make use of machine learning; and enhancing transparency and supervisory harmonisation. This revision builds on the experience accumulated by the ECB since the first publication of the Guide in 2019. 15 On 25 July 2025, the ECB also published the final Guide on Options and Discretions, following a consultation process launched in November 2024. The Guide introduces clarifications and adjustments to the treatment of market risk and operational risk, as well as to the conditions under which minority interests may be included in group capital, among other aspects. Regarding resolution regulation, institutions are required to maintain an adequate funding structure to ensure that, in the event of financial distress, they hold sufficient liabilities to absorb losses and either restore viability or be resolved while safeguarding depositor protection and financial stability. To this end, global systemically important institutions are subject to minimum loss-absorbing capacity requirements, namely Total Loss-Absorbing Capacity (TLAC) and the Minimum Requirement for own funds and Eligible Liabilities (MREL), as regulated under CRR 3 and the Bank Recovery and Resolution Directive (BRRD). On 25 October 2022, a regulation on the prudential treatment of global systemically important institutions was published, amending both the CRR and the BRRD with respect to the prudential treatment of G-SIBs with a multiple point of entry (MPE) resolution strategy, as well as the methods for the indirect subscription of eligible instruments (daisy chains) for the purpose of meeting MREL requirements. This regulation, known as the Resolution 'Quick Fix', pursues two main objectives: • The inclusion in the BRRD and CRR 3 of references to third-country subsidiaries allowing for adjustments to the deduction for holdings of TLAC instruments issued by such subsidiaries, based on excess TLAC/MREL at subsidiary level, as well as adjustments in cases where the aggregate own funds and eligible liabilities requirements of a G-SIB under an MPE strategy exceed the theoretical requirements of the same group under a single point of entry (SPE) strategy. This adjustment is therefore based on a comparison between the two possible resolution strategies. • The introduction of a deduction regime for holdings of MREL instruments through entities within the same resolution group other than the resolution entity. The Regulation establishes a deduction at the level of the intermediate entity within the daisy chain that repurchases the instruments. As a result, the intermediate entity is required to issue an equivalent amount, thereby transferring internal MREL needs to the resolution entity, which will cover them with external MREL. In this context, in 2025 the EBA published the Final Report on the draft Implementing Technical Standards (ITS) on resolution planning, aimed at further harmonising reporting requirements. Regarding Deposit Guarantee Schemes (DGS), these are regulated under the Deposit Guarantee Schemes Directive (DGSD), which has not undergone substantial amendments since its publication in 2014. The Directive aims to harmonise DGS across Member States to ensure stability and consistency across countries. It establishes an appropriate framework to improve depositor access to DGS through a clear scope of coverage, short repayment periods, enhanced information, and robust funding requirements. The Directive has been transposed into Spanish law through Royal Decree 2606/1996, as amended by Royal Decree 1041/2021. To ensure the protection of depositors, DGS collect financial resources through contributions from their members, which must be paid at least annually. These annual contributions are determined based on the number of covered deposits and the risk profile of the institutions affiliated with the DGS. The methodology for calculating contributions is set out in the EBA Guidelines (EBA/GL/2023/02). In June 2025, the Council and the European Parliament reached a political agreement, which still needs to be finalized at a technical level as a prerequisite for its final formal approval. Within the sustainability field from a prudential perspective, the implementation of the CRR 3/CRD VI package has progressed, introducing specific requirements to integrate environmental, social and governance (ESG) risks into the prudential framework. With the aim of assessing whether a specific prudential treatment is warranted, the CRR establishes three mandates: to assess the availability of ESG risk data; to evaluate the effective risk profile of exposures affected by environmental or social factors; and to analyse the potential effects on financial stability of differentiated prudential treatment, with a view to possible legislative proposals by 31 December 2026. In addition, the CRR 3/CRD VI package introduces disclosure requirements on ESG risks, reporting of ESG risk exposures to competent authorities, and an obligation for institutions to develop specific plans for managing financial risks arising from ESG factors, including those related to transition trends. 16 In this context, the EBA published in January 2025 the Guidelines on the Management of ESG Risks, fulfilling the CRD VI mandate to structurally integrate ESG risks into the European prudential framework. These Guidelines set out minimum standards and reference methodologies for the identification, measurement, management and monitoring of ESG risks, as well as their proper integration into internal governance processes, risk appetite frameworks and strategic planning. The Guidelines also specify minimum requirements for the development of transition plans, which must include metrics, quantifiable targets and time-bound milestones aligned with institutions’ sustainability strategies and prudential requirements. Their application will be mandatory from 11 January 2026, consolidating a prudential framework that strengthens the systematic consideration of ESG risks in supervisory and risk management processes. At the international level, the Basel Committee on Banking Supervision (BCBS) has continued to advance work on ESG-related standards. In June 2025, the Committee published a voluntary framework for the disclosure of climate-related financial risks, aimed at guiding internationally active banks in the provision of qualitative and quantitative information on their exposures to physical and transition risks. The framework acknowledges the still nascent state of climate data availability, consistency and quality, and therefore adopts a flexible approach that allows for the use of different metrics and methodologies. While its adoption will depend on jurisdictional decisions, the Committee considers this framework an important step towards enhancing transparency and international comparability of climate risk disclosures and intends to monitor its implementation with a view to potential future revisions. In the digital field, due to the increase in international crypto assets activities, the EU is moving forward with the integration of Basel standards on crypto-assets through the mandate set out in CRR 3, which will enable the establishment of a harmonised prudential treatment once the legislative process is completed. In fulfilment of the CRR 3 mandate, the EBA has finalised and published the draft Regulatory Technical Standards (RTS) applicable to the calculation of own funds requirements for crypto-asset exposures. At 31 December 2025 the Bank met the minimum capital requirements established by current legislation (see note 50.d). Additionally, it should be noted that the Group has filed an appeal with the Court of Justice of the European Union (CJEU) requesting the annulment of a decision by the European Central Bank (ECB) related to the treatment of deferred tax assets generated at Banco Santander Brasil, which, if resolved favourably, would have a positive impact of approximately 20 basis points on the Group's CET1, using the amounts at the end of the year. #### f) Environmental impact In view of the business activities carried on by the Group entities, and therefore the Bank, do not have any environmental liability, expenses, assets, provisions or contingencies that might be material with respect to its financial position or results (see note 50.a). #### g) Customer Care Service Annual Report As required by the Article 17 of Ministry of Economy Order ECO/734/2004, of 11 March, on the services and departments of Customer Service and the Customer Ombudsmen of Financial Institutions, the annual report will be submitted by the Head of the department to the board meeting held on March 2026 is summarised in the directors' report. #### h) Deposit Guarantee Fund, National Resolution #### Fund and Single Resolution Fund i. #### Deposit Guarantee Fund Banco Santander participates in the Deposit Guarantee Fund (DGF). The annual contribution to be made by the entities to this fund, established by Royal Decree - Law 16/2011 of October 14, by which the DGF is created in accordance with the wording given by the Tenth Final Disposition of Law 11/2015 of June 18 on Recovery and Resolution of credit institutions and investment services companies (in force since June 20, 2015), is determined by the Management Committee of the DGF and is established based on the guaranteed deposits of each entity and their risk profile. The annual contribution to be made by the entities to this fund is determined by the Management Committee of the FGD, and consists of the contribution based on the guaranteed deposits of each entity corrected for their risk profile, which includes the phase of the economic cycle and the impact of pro- cyclical contributions, according to section 3 of article 6 of the Royal Decree-Law 16/2011. The purpose of the FGD is to guarantee deposits, both monetary and in securities, in credit institutions up to the limit set forth in the mentioned Royal Decree-Law. The expense incurred by the contributions accrued to this organism in the year 2025 has amounted to EUR 14 million (EUR 16 million in the year 2024), after the required amount by the current legislation has been reached, which are recorded under ‘Other operating expenses’ in the profit and loss account attached (see note 41). 17 ii. National Resolution Fund Law 11/2015 regulates the creation of the National Resolution Fund, whose financial resources should reach, by 31 December 2024, at least 1% of the amount of secured deposits, through contributions from credit institutions and investment firms established in Spain. The details of the calculation of contributions to this Fund is regulated by Commission Delegated Regulation (EU) 2015/63 of 21 October 2014 and is calculated by the Orderly Banking Resolution Fund, on the basis of the information provided by each entity. iii. Single Resolution Fund On January 1, 2016, the Single Resolution Fund (SRF), which was implemented by Regulation (EU) No. 806/2014 of the European Parliament and of the Council, became operational. The rules governing the banking union provide that banks will pay contributions to the SRF over eight years. The Single Resolution Board (SRB) is responsible for calculating the contributions to be made by credit institutions and investment firms to the SRF. These contributions are based, as of fiscal year 2016, on: (a) a flat-rate contribution (or base annual contribution), pro rata with respect to the total liabilities, excluding own funds, guaranteed deposits of all institutions authorized in the territory of the participating member states; and (b) a risk-adjusted contribution, which will be based on the criteria set out in Article 103(7) of Directive 2014/59/ EU, taking into account the principle of proportionality, without creating distortions between structures of the banking sector of the member states. The amount of this contribution will accrue from the 2016 financial year, on an annual basis. During 2025 it was confirmed that no call for contributions to the SRF would be issued for this year, so there has been no expenditure incurred in 2025 for contributions made to the National Resolution Fund and the Single Resolution Fund (as was also the case in 2024). Likewise, in 2023 Banco Santander acquired an Irrevocable Payment Commitment (IPC) in favor of the Single Resolution Fund for EUR 120 million. This commitment is guaranteed by constituting a cash deposit of the same amount, delivered as a guarantee that was recorded in the Balance Sheet Assets for which, in accordance with the standard, no provision has been recorded. #### i) Merger by absorption On 24 June 2025, the boards of directors of Banco Santander, S.A. (as the absorbing company) and of URO Property Holdings, S.A., Blecno Investments, S.L.U., Emisora Santander España, S.A.U. and Elevate Tech Platforms, S.L.U. (as the absorbed companies) drew up and executed the common draft terms of merger by absorption. On 12 September 2025, the Extraordinary General Meeting of Shareholders of URO Property Holdings, S.A. approved the merger on the terms and conditions set out in the draft merger. Pursuant to the provisions of Articles 53.1, 54 and 55 of Royal Decree-Law 5/2023 of 28 June, transposing European Union Directives on structural modifications of commercial companies (“RDLME”), approval of this merger by the general meetings (or, where applicable, by the sole partner or sole shareholder) of the remaining absorbed companies was not required, as they were wholly owned by Banco Santander, S.A. Likewise, approval by the shareholders’ meeting of Banco Santander, S.A. was not required, as it was not requested by shareholders representing at least 1% of the share capital, in accordance with Article 55.1 of the RDLME. Consequently, the board of directors of Banco Santander, S.A., at its meeting of 24 June 2025, approved the common draft terms of merger, as well as the merger contemplated therein. Once the requisite authorisations had been obtained, on 28 January 2026 the corresponding merger deed was executed and, upon its registration with the Commercial Registers of Madrid and Cantabria, URO Property Holdings, S.A., Blecno Investments, S.L.U., Emisora Santander España, S.A.U. and Elevate Tech Platforms, S.L.U. were dissolved and wound up without liquidation, and the entirety of their respective assets and liabilities was transferred en bloc, by universal succession, to Banco Santander, S.A., which acquired them by universal succession and without interruption. It should be noted that, for accounting purposes, the merger was recognised by Banco Santander, S.A. in the 2025 financial year. As the absorbed companies were wholly owned by Banco Santander, S.A., directly or, in the case of URO Property Holdings, S.A., with an ownership interest of more than 90%, in accordance with Articles 53 and 54 of the RDLME, the Bank did not increase its share capital. Upon the merger becoming effective on 28 January 2026, all the shares and equity interests of the absorbed companies were fully redeemed, extinguished and cancelled. The merger balance sheets were deemed to be those included in the annual accounts for the financial year ended 31 December 2024, drawn up by the management bodies of each of the companies participating in the merger. The merger balance sheets of Banco Santander, S.A., URO Property Holdings, S.A., Blecno Investments, S.L.U. and Emisora Santander España, S.A.U. were duly verified by their respective auditors. In accordance with the applicable accounting regulations, for accounting purposes 1 January 2025 was set as the date from which the operations of the absorbed companies were deemed to have been carried out by Banco Santander, S.A. 18 Furthermore, the transaction constitutes a merger as regulated in Article 76.1(c) of Law 27/2014 of 27 November on Corporate Income Tax (“LIS”). In accordance with Article 89.1 of the LIS, the merger was subject to the tax regime set out in Chapter VII of Title VII and in the Second Additional Provision of the LIS, as well as in Articles 19.2.1 and 45, paragraph I.B.10, of the Consolidated Text of the Law on Transfer Tax and Stamp Duty, approved by Royal Legislative Decree 1/1993 of 24 September. The information required under Article 86.1 of the aforementioned Law in relation to the merger is included in these annual accounts (Annex VI). Set out below are the balance sheets of the absorbed companies as at 31 December 2024: URO PROPERTY HOLDINGS, S.A. - (Thousand euros) | | | | | | --- | --- | --- | --- | | | | | | | ASSETS | 2024 | EQUITY AND LIABILITIES | 2024 | | NON-CURRENT ASSETS | 1,402,337 | EQUITY | 108,063 | | Investment property | 1,340,383 | OWN FUNDS | 108,063 | | Long-term financial investments | 29,623 | Share capital | 8,998 | | Deferred tax assets | 32,331 | Share premium | 417,179 | | | | Reserves | 269,608 | | | | Treasury shares | (14) | | | | Profit/(loss) from prior years | (525,965) | | | | Other contributions from shareholders | 5,900 | | | | Profit/(loss) for the year | (67,643) | | | | NON-CURRENT LIABILITIES | 1,482,856 | | | | Long-term borrowings | 13,391 | | | | Long-term borrowings from group companies and associates | 1,416,644 | | | | Long-term accruals and deferred income | 52,821 | | CURRENT ASSETS | 323,790 | CURRENT LIABILITIES | 135,208 | | Trade and other receivables | 1,009 | Short-term provisions | 107,721 | | Short-term financial investments | 190,398 | Short-term borrowings | 7 | | Short-term investments in group companies and associates | 148 | Short-term borrowings from group companies and associates | 15,463 | | Cash and cash equivalents | 132,235 | Trade and other payables | 1,622 | | | | Short-term accruals and deferred income | 10,395 | | TOTAL ASSETS | 1,726,127 | TOTAL EQUITY AND LIABILITIES | 1,726,127 | BLECNO INVESTMENT, S.L.U. - (Thousand euros) | | | | | | --- | --- | --- | --- | | | | | | | ASSETS | 2024 | EQUITY AND LIABILITIES | 2024 | | NON-CURRENT ASSETS | 225,515 | EQUITY | 172,932 | | Investment property | 223,639 | OWN FUNDS | 172,932 | | Long-term financial investments | 1,876 | Share capital | 22,243 | | | | Share premium | 149,405 | | | | Reserves | 4,449 | | | | Profit/(loss) for the year | (3,165) | | | | NON-CURRENT LIABILITIES | 2,178 | | | | Long-term borrowings | 2,178 | | CURRENT ASSETS | 7,153 | CURRENT LIABILITIES | 57,558 | | Trade and other receivables | 42 | Short-term borrowings from group companies and associates | 36,882 | | Cash and cash equivalents | 7,111 | Trade and other payables | 995 | | | | Short-term accruals and deferred income | 19,681 | | TOTAL ASSETS | 232,668 | TOTAL EQUITY AND LIABILITIES | 232,668 | EMISORA SANTANDER ESPAÑA, S.A.U. - (Thousand euros) | | | | | | --- | --- | --- | --- | | | | | | | ASSETS | 2024 | EQUITY AND LIABILITIES | 2024 | | NON-CURRENT ASSETS | 10 | EQUITY | 1,639 | | Deferred tax assets | 10 | OWN FUNDS | 1,639 | | | | Share capital | 1,653 | | | | Reserves | 284 | | | | Profit/(loss) from prior years | (319) | | | | Profit/(loss) for the year | 21 | | CURRENT ASSETS | 1,656 | CURRENT LIABILITIES | 27 | | Short-term investments in group companies and associates | 10 | Trade and other payables | 27 | | Cash and cash equivalents | 1,646 | | | | TOTAL ASSETS | 1,666 | TOTAL EQUITY AND LIABILITIES | 1,666 | 19 ELEVATE TECH PLATFORMS, S.L.U.-(Thousand euros) | | | | | | --- | --- | --- | --- | | | | | | | ASSETS | 2024 | EQUITY AND LIABILITIES | 2024 | | NON-CURRENT ASSETS | 994 | EQUITY | 1,024 | | Long-term investments in group companies and associates | 991 | OWN FUNDS | 1,024 | | Deferred tax assets | 3 | Share capital | 3 | | | | Profit/(loss) from prior years | (3,155) | | | | Other contributions from shareholders | 2,350 | | | | Profit/(loss) for the year | 1,826 | | CURRENT ASSETS | 30 | CURRENT LIABILITIES | — | | Short-term investments in group companies and associates | 2 | | | | Cash and cash equivalents | 28 | | | | TOTAL ASSETS | 1,024 | TOTAL EQUITY AND LIABILITIES | 1,024 | In accordance with the provisions of the applicable regulations, as a result of the accounting record of the aforementioned merger by absorption transaction carried out by the Bank in the financial year 2024, an increase in the Bank's voluntary reserves in that year amounted to 166 million euros was evident due to the decline in the participation of the companies acquired (see note 29). #### j) Events after the reporting period On 9 January 2026, after obtaining the necessary regulatory approvals and fulfilling the conditions for closing, the Group completed the sale of 49% of the share capital of Santander Bank Polska S.A. and 50% of the share capital of Santander Towarzystwo Funduszy Inwestycyjnych S.A. (TFI, the asset management business in Poland) to Erste Group Bank AG for a total cash amount of approximately EUR 7,000 million. Santander holds the 9.7% of Santander Polska's share capital. The transaction resulted in the loss of effective control over the entity, and therefore, effective as of 9 January 2026, Santander Bank Polska S.A. has been reclassified to the portfolio of equity instruments measured at fair value through other comprehensive income as from that date. Additionally, on 3 February 2026, Banco Santander, S.A. ('Santander') announced that it had reached an agreement to acquire Webster Financial Corporation ('Webster'), the parent company of Webster Bank, N.A., for approximately USD 12,200 million (around EUR 10,300 million). Webster shareholders will receive USD 48.75 in cash and 2.0548 Santander shares for each Webster share, resulting in a total consideration of USD 75 per Webster share. Completion of the transaction is expected to take place in the second half of 2026 subject to the customary conditions for this type of operations, including obtaining the relevant regulatory approvals and the approvals of both Webster's and Santander's shareholders. 2. Accounting policies The following accounting principles, policies and measurement criteria have been applied in the preparation of the financial statements: #### a) Foreign currency transactions Banco Santander’s functional and presentation currency is the euro.   Therefore, all balances and transactions denominated in currencies other than the euro are deemed to be denominated in foreign currency. The balances in the financial statements whose functional currency is not the euro are translated to euros as follows: • Assets and liabilities, at the closing rates. • Income and expenses, at the average exchange rates for the year. • Equity items, at the historical exchange rates. In general, balances denominated in foreign currencies, including those branches in countries outside the Monetary Union, have been converted to euros using the official average exchange rates of the Spanish spot currency market (through the US dollar's quotation on local markets, for non-monetary currencies listed on the Spanish market) at the end of each fiscal year. 20 The exchange differences arising on the translation of foreign currency balances to the functional currency are generally recognised at their net amount under 'Exchange differences, net' in the income statement, except for exchange differences arising on financial instruments at fair value through profit or loss, which are recognised in the income statement without distinguishing them from other changes in fair value, and for exchange differences arising on non-monetary items measured at fair value through equity, which are recognised under 'Other comprehensive income–Items that may be reclassified to profit or loss–Exchange differences' except for exchange differences on equity instruments, where the option to irrevocably elect to be measured at fair value through changes in accumulated other comprehensive income, which are recognised in accumulated 'Other Comprehensive Income - Items not to be reclassified to profit or loss - Changes in fair value of equity instruments measured at fair value' through other comprehensive income (see note 25). b) Investments in subsidiaries, joint ventures and #### associates Group entities are those over which the Bank has the capacity to exercise control; capacity which is generally but not exclusively manifested by the direct or indirect ownership of at least 50% of the voting rights of the investees or, even if this percentage is lower or zero, if, as in the case of agreements with their shareholders, the Bank is granted such control. Control is understood to be the power to direct the financial and operating policies, by law, by statute or by agreement, of an entity in order to obtain benefits from its activities. Joint ventures are deemed to be entities that are not subsidiaries but which are jointly controlled by two or more unrelated entities. This is evidenced by contractual arrangements whereby two or more parties have interests in entities so that decisions about the relevant activities require the unanimous consent of all the parties sharing control. Associates are entities over which Banco Santander is in a position to exercise significant influence, but not control or joint control. It is presumed that Banco Santander exercises significant influence if it holds 20% or more of the voting power of the investee. The shareholdings in group, multi-group and associated entities, are presented on the balance sheet at their net acquisition cost of any impairments that, where relevant, those shares may have suffered. Where there is evidence of impairment of these shares, the amount of such deterioration is equivalent to the difference between their recoverable amount and their book value. Impairment losses are recorded under the heading ‘Impairment or reversal of impairment of investments in subsidiaries, joint ventures and associates’ in the profit and loss account. Appendices I and II contain significant information on these companies. In addition, note 13 provides information on the most significant acquisitions and disposals in 2025 and 2024. #### c) Classification of financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or an equity instrument of another entity. The following transactions are not treated for accounting purposes as financial instruments: • Investments in subsidiaries, associates and joint venture when accounted for using the equity method in accordance with IAS 28 (see note 13). • Rights and obligations under employee benefit plans recognized in accordance with IAS 19 (see note 23). • Contracts and obligations relating to employee remuneration based on own equity instruments accounted for in accordance with IFRS 2   (see note 30). i. Classification of financial assets for measurement purposes Financial assets are classified into the various categories used for management and measurement purposes, unless they have to be presented as 'Non-current assets held for sale' or they relate to 'Cash, cash balances at central banks and other deposits on demand', 'Changes in the fair value of hedged items in portfolio hedges of interest rate risk (asset side)', 'Hedging derivatives and Investments', which are reported separately. Classification of financial instruments: the classification criteria for financial assets depends on the business model for their management and the characteristics of their contractual flows. Banco Santander´s business models refer to the way in which it manages its financial assets to generate cash flows. In defining these models , the Bank takes into account the following factors: • How key entity staff are assessed and reported on the performance of the business model and the financial assets held in the business model. • The risks that affect the performance of the business model (and the financial assets held in the business model) and, specifically, the way in which these risks are managed. • The way in which business managers are remunerated. • The frequency, the calendar and volume of sales in previous years, as well as expectations of future sales and the reasons of the sales. 21 The analysis of the characteristics of the contractual cash flows of financial assets requires an assessment of the congruence of these flows with a basic loan agreement. Banco Santander determines if the contractual cash flows of its financial assets that are only principal and interest payments on the outstanding principal amount at the beginning of the transaction. This analysis takes into consideration four factors (performance, contractual clauses, contractually linked products and currencies). Furthermore, among the most significant judgements used by  Banco Santander in carrying out this analysis, the following ones are included: • The return on the financial asset, in particular in cases of periodic interest rate adjustments where the term of the reference rate does not coincide with the frequency of the adjustment. In these cases, an assessment is made to determine whether or not the contractual cash flows differ significantly from the flows without this change in the time value of money, establishing a tolerance level of 5%. • When contractual clauses that may modify the cash flows of the financial asset exist, the structure of the cash flows before and after the activation of such clauses is analysed, regardless of the probability of occurrence of the contingent event. The evaluation of contractual flows of financial assets with characteristics associated with ESG (Environmental, Social and Governance) is included in this analysis. • Financial assets whose cash flows have different priority for payment due to a contractual link to underlying assets (e.g. securitization instruments or similar structures) require a look-through analysis by the Bank so as to review that both the financial asset and the underlying assets are only principal and interest payments and that the exposure to credit risk of analyzed segment does not exceed the average exposure of the underlying assets of the instrument. Depending on these factors, the financial assets classify for measurement as: (i) at amortised cost, (ii) at fair value with changes in other comprehensive income or (iii) at fair value with changes through profit and loss. Bank of Spain Circular 4/2017 also establishes an option to irrevocably designate an instrument at fair value with changes in profit or loss, when doing so eliminates or significantly reduces a measurement or recognition inconsistency (sometimes referred to as 'accounting asymmetry') that would otherwise arise from measuring assets or liabilities or recognising gains and losses on different bases. Banco Santander uses the following criteria for the classification of the financial debt instruments: • Amortised cost: financial instruments managed under a business model whose objective is to hold the financial assets to collect contractual principal and interest flows. This category includes instruments for which there are no frequent or significant unjustified sales and fair value is not a key element in the management of these assets and contractual conditions they give rise to cash flows on specific dates, which are only payments of principal and interest on the outstanding principal amount. In this sense, justified sales are considered to be those related to an (i) increase in the credit risk of the asset, (ii) unanticipated funding needs (stress case scenarios) and (iii) those close to maturity . Additionally, the characteristics of its contractual flows represent substantially a 'basic financing agreement'. • Fair value with changes in other comprehensive income: financial instruments held in a business model whose objective is to collect principal and interest cash flows and the sale of these assets, where fair value is a relevant factor in their management. Additionally, the contractual cash flow characteristics substantially represent a 'basic financing agreement'. • Fair value with changes in profit or loss: financial instruments included in a business model different from the above, where fair value is a key element in the management of these assets, and the contractual flows of the financial instruments do not substantially represent a 'basic financing agreement'. In this section it can be enclosed the portfolios classified under 'Financial assets held for trading', 'Non-trading financial assets mandatorily at fair value through profit or loss' and 'Financial assets at fair value through profit or loss'. In this regard, most of the financial assets presented in the category of 'Financial assets designated at value reasonable with change in results' are instruments financial services that, not being part of the portfolio of negotiation, are contracted jointly with other financial instruments that are recorded in the category of 'held for trading', and that by both are recorded at fair value with changes in results, so your record in any other category would produce accounting asymmetries. Equity instruments will be classified at fair value under Bank of Spain Circular 4/2017 with changes in profit or loss, unless the Bank, decides, for non-trading assets, to classify them at fair value with changes in other comprehensive income (irrevocably) at initial recognition. 22 ii. Classification of financial assets for presentation purposes Financial assets are classified by nature into the following items in the balance sheet: • Cash, cash balances at Central Banks and other deposits on demand: cash balances and balances receivable on demand relating to deposits with central banks and other credit institutions. • Loans and advances: includes the debit balances of all credit and loans granted by the Bank, other than those represented by securities or securitized, as well as the finance lease receivables and other debit balances of a financial nature in favour of the Bank, such as cheques drawn on credit institutions, balances receivable from clearing houses and settlement agencies for transactions on the stock exchange and organised markets, bonds given in cash, capital calls, fees and commissions receivable for financial guarantees and debit balances arising from transactions not originating in banking transactions and services, such as the collection of rentals and similar items. They are classified, on the basis of the institutional sector to which the debtor belongs, into: – Central banks: credit of any nature, including deposits and money market transactions received from the Bank of Spain or other central banks. – Credit institutions: credit of any nature, including deposits and money market transactions, in the name of credit institutions. – Customers: includes the remaining credit, including money market transactions through central counterparties. • Debt securities: bonds and other securities that represent a debt for their issuer, that that accrue interest or equivalent returns implemented in securities or in book entries. • Equity instruments: financial instruments issued by other entities, such as shares, which have the nature of equity instruments for the issuer, other than investments in subsidiaries, joint ventures or associates. Investment fund units are included in this item. • Derivatives: includes the fair value in favour of the Bank of derivatives which do not form part of hedge accounting, including embedded derivatives separated from hybrid financial instruments. • Repurchase agreements and reverse repurchase agreements: Purchases of financial instruments under a non-optional resale (repurchase) agreement at a fixed price (repos) are recognised in the consolidated balance sheet as financing granted, based on the nature of the debtor, under 'Loans and advances with central banks', 'Loans and advances to credit institutions' or 'Loans and advances to customers. Differences between the purchase and sale prices are recognised as interest over the contract term. • Changes in the fair value of hedged items in portfolio hedges of interest rate risk: this item is the balancing entry for the amounts credited to the income statement in respect of the measurement of the portfolios of financial instruments which are effectively hedged against interest rate risk through fair value hedging derivatives. • Hedging derivatives: Includes the fair value in favour of the Bank derivatives, including embedded derivatives separated from hybrid financial instruments, designated as hedging instruments in hedge accounting. iii. Classification of financial liabilities for measurement purposes Financial liabilities are initially classified into the various categories used for management and measurement purposes, unless they have to be presented as 'Liabilities associated with non-current assets held for sale' or they relate to 'Hedging derivatives' or the changes in the fair value of hedged items in portfolio hedges of interest rate risk (liability side), which are reported separately. In most cases, changes in the fair value of financial liabilities designated at fair value through profit or loss, caused by the entity's credit risk, are recognized in other comprehensive income, unless this treatment results in an accounting asymmetry, in which case the full effect is recognized in the profit or loss for the period. Financial liabilities are included for measurement purposes in one of the following categories: • Financial liabilities held for trading (at fair value through profit or loss): this category includes financial liabilities incurred for the purpose of generating a profit in the near term from fluctuations in their prices, financial derivatives not designated in accounting hedging relationships, and financial liabilities arising from the outright sale of financial assets temporarily acquired or received on loan (short positions). 23 • Financial liabilities designated at fair value through profit or loss: financial liabilities are included in this category when they provide more relevant information, either because this eliminates or significantly reduces recognition or measurement inconsistencies (accounting mismatches) that would otherwise arise from measuring assets or liabilities or recognising the gains or losses on them on different bases, or because a group of financial liabilities or financial assets and liabilities is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, and information about the group is provided on that basis to the Bank's key management personnel. Liabilities may only be included in this category on the date when they are incurred or originated. • Financial liabilities at amortised cost: financial liabilities, irrespective of their instrumentation and maturity, not included in any of the above- mentioned categories which arise from the ordinary borrowing activities carried on by financial institutions. iv. Classification of financial liabilities for #### presentation purposes Financial liabilities are classified by nature into the following items in the balance sheet: • Deposits: includes all repayable balances received in cash by the Bank, other than those instrumented as marketable securities and those having the substance of subordinated liabilities (amount of the loans received, which for credit priority purposes are after common creditors), except for the debt instruments issued. This item also includes cash bonds and cash consignments received the amount of which may be invested without restriction. Deposits are classified on the basis of the creditor’s institutional sector into: – Central banks: deposits of any nature, including credit received and money market transactions received from the Bank of Spain or other central banks. – Credit institutions: deposits of any nature, including credit received and money market transactions in the name of credit institutions. – Customer: includes the remaining deposits, including money market transactions through central counterparties. • Marketable debt securities: includes the amount of bonds, debentures and other debt represented by marketable securities, other than those having the substance of subordinated liabilities (amount of the loans received, which for credit priority purposes are after common creditors, and includes the amount of the financial instruments issued by the Bank which, having the legal nature of capital, do not meet the requirements to qualify as equity, such as certain preferred shares issued). This item includes the component that has the consideration of financial liability of the securities issued that are compound financial instruments. ▪ Derivatives: includes the fair value, with a negative balance for Banco Santander, separated from the host contract, which do not form part of hedge accounting. • Short positions: includes the amount of financial liabilities arising from the outright sale of financial assets acquired under reverse repurchase agreements or borrowed. ▪ Other financial liabilities: includes the amount of payment obligations having the nature of financial liabilities not included in other items (includes, among others, the balance of lease liabilities recognized in accordance with IFRS 16), and liabilities under financial guarantee contracts, unless they have been classified as non-performing. ▪ Repurchase agreements and reverse repurchase agreements: Sales of financial instruments under a non-optional resale (repurchase) agreement at a fixed price (repos) are recognised in the consolidated balance sheet as financing received, based on the nature of the creditor, under 'Deposits from central banks', 'Deposits from credit institutions' or 'Customer deposits'. Differences between the purchase and sale prices is recorded as interest accrued over the life of the contract, using the effective interest rate method.. • Changes in the fair value of hedged items in portfolio hedges of interest rate risk: this item is the balancing entry for the amounts charged to the income statement in respect of the measurement of the portfolios of financial instruments which are effectively hedged against interest rate risk through fair value hedging derivatives. ▪ Hedging derivatives: includes the fair value of the Bank’s liability in respect of derivatives, including embedded derivatives separated from hybrid financial instruments, designated as hedging instruments in hedge accounting. 24 ▪ The preference shares contingently convertible into ordinary shares eligible as Additional Tier 1 capital (PPCC) -perpetual shares, which may be repurchased by the issuer in certain circumstances, the interest on which is discretionary, and would convert into variable number of newly issued ordinary shares if the capital ratio of the Bank or its consolidated group falls below a given percentage (trigger event), as those two terms are defined in the related issue prospectuses are recognised for accounting purposes by the Bank as compound instruments in accordance with IAS 32. The liability component reflects the issuer’s obligation to deliver a variable number of shares and the equity component reflects the issuer’s discretion in relation to the payment of the related coupons. In order to effect the initial allocation, the Bank estimates the fair value of the liability as the amount that would have to be delivered if the trigger event were to occur immediately and, accordingly, the equity component, calculated as the residual amount, is zero. In view of the aforementioned discretionary nature of the payment of the coupons, they are deducted directly from equity. ▪ Capital perpetual preference shares (PPCA), with the possibility of purchase by the issuer in certain circumstances, whose remuneration is discretionary, and which will be amortised permanently, totally or partially, in the event that the bank or its consolidated group submits a capital ratio lesser than a certain percentage (trigger event), as defined in the corresponding prospectuses, are accounted for by the Bank as equity instruments. ▪ Derivatives embedded in other financial instruments or in other host contracts are accounted for separately as derivatives if their risks and characteristics are not closely related to those of the host contracts, provided that the host contracts are not classified as financial assets/liabilities designated at fair value through profit or loss or as 'Financial assets/liabilities held for trading'. #### d) Measurement of financial assets and liabilities #### and recognition of fair value changes In general, financial assets and liabilities are initially recognised at fair value which, in the absence of evidence to the contrary, is deemed to be the transaction price. In this regard, Bank of Spain Circular 4/2017 states that regular way purchases or sales of financial assets shall be recognised and derecognised on the trade date or on the settlement date. Banco Santander has opted to make such recognition on the trading date or settlement date, depending on the convention of each of the markets in which the transactions are carried out. For example, in relation to the purchase or sale of debt securities or equity instruments traded in the Spanish market, securities market regulations stipulate their effective transfer at the time of settlement and, therefore, the same time has been established for the accounting record to be made. The fair value of instruments not measured at fair value through profit and loss is adjusted by transaction costs. Subsequently, and on the occasion of each accounting close, they are valued in accordance with the following criteria: i. #### Measurement of financial assets Financial assets are measured at fair value are valued mainly at their fair value without deducting any transaction cost for their sale. The fair value of a financial instrument on a given date is taken to be the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The most objective and common reference for the fair value of a financial instrument is the price that would be paid for it on an active, transparent and deep market (quoted price or market price). At 31 December 2025, there were no significant investments in quoted financial instruments that had ceased to be recognised at their quoted price because their market could not be deemed to be active. If there is no market price for a given financial instrument, its fair value is estimated on the basis of the price established in recent transactions involving similar instruments and, in the absence thereof, of valuation techniques commonly used by the international financial community, taking into account the specific features of the instrument to be measured and, particularly, the various types of risk associated with it. All derivatives are recognised in the balance sheet at fair value from the trade date. If the fair value is positive, they are recognised as an asset and if the fair value is negative, they are recognised as a liability. The fair value on the trade date is deemed, in the absence of evidence to the contrary, to be the transaction price. The changes in the fair value of derivatives from the trade date are recorded in the   income statement. Specifically,  the fair value of financial derivatives traded in organised markets included in the portfolios of financial assets or liabilities held for trading is deemed to be their daily quoted price and if, for exceptional reasons, the quoted price cannot be determined on a given date, these financial derivatives are measured using methods similar to those used to measure derivatives. 25 The fair value of derivatives is taken to be the sum of the future cash flows arising from the instrument, discounted to present value at the date of measurement (present value or theoretical close) using valuation techniques commonly used by the financial markets: net present value, option pricing models and other methods. The amount of debt securities and loans and advances under a business model whose objective is to collect the principal and interest flows are valued at their amortised cost, as long as they comply with the 'SPPI' (Solely Payments of Principal and Interest) test, using the effective interest rate method in their determination. Amortised cost refers to the acquisition cost of a corrected financial asset or liability (more or less, as the case may be) for repayments of principal and the part systematically charged to the income statement of the difference between the initial cost and the corresponding reimbursement value at expiration. In the case of financial assets, the amortised cost includes, in addition, the corrections to their value due to the impairment. In the loans and advances covered in fair value hedging transactions, the changes that occur in their fair value related to the risk or the risks covered in these hedging transactions are recorded. The effective interest rate is the discount rate that exactly matches the carrying amount of a financial instrument to all its estimated cash flows of all kinds over its remaining life. For fixed rate financial instruments, the effective interest rate coincides with the contractual interest rate established on the acquisition date plus, where applicable, the fees and transaction costs that, because of their nature, form part of their financial return. In the case of floating rate financial instruments, the effective interest rate coincides with the rate of return prevailing in all connections until the next benchmark interest reset date. Equity instruments and contracts related with these instruments are measured at fair value. However, in certain circumstances the Bank estimates cost value as a suitable estimate of the fair value. This can happen if the recent event available information is not enough to measure the fair value or if there is a broad range of possible measures and the cost value represents the best estimates of fair value within this range. The amounts at which the financial assets are recognised represent, in all material respects, the Bank´s maximum exposure to credit risk at each reporting date. Also Banco Santander has received collateral and other credit enhancements to mitigate its exposure to credit risk, which consist mainly of mortgage guarantees, cash collateral, equity instruments and personal security, assets leased out under finance lease and full-service lease agreements, assets acquired under repurchase agreements, securities loans and credit derivatives. ii. #### Measurement of financial liabilities In general, financial liabilities are measured at amortised cost, as defined above, except for those included under 'Financial liabilities held for trading' and 'Financial liabilities designated at fair value through profit or loss' and financial liabilities designated as hedged items (or hedging instruments) in fair value hedges, which are measured at fair value. The changes in credit risk arising from financial liabilities designated at fair value through profit or loss are recognised in accumulated other comprehensive income, unless they generate or increase an accounting mismatch, in which case changes in the fair value of the financial liability in all respects are recognised in the income statement. #### iii. #### Valuation techniques The financial instruments at fair value determined on the basis of published price quotations in active markets (level 1) include government debt securities, private- sector debt securities, derivatives traded in organised markets, securitised assets, shares, short positions and fixed-income securities issued. In cases where price quotations cannot be observed, management makes its best estimate of the price that the market would set, using its own internal models, described in note 48. In most cases, these internal models use data based on observable market parameters as significant inputs (level 2) and, in cases, they use significant inputs not observable in market data (level 3). In order to make these estimates, various techniques are employed, including the extrapolation of observable market data. The best evidence of the fair value of a financial instrument on initial recognition is the transaction price, unless the fair value of the instrument can be obtained from other market transactions performed with the same or similar instruments or can be measured by using a valuation technique in which the variables used include only observable market data, mainly interest rates. iv. Recognition of fair value changes As a general rule, changes in the carrying amount of financial assets and liabilities are recognised in the income statement. A distinction is made between the changes resulting from the accrual of interest and similar items, (which are recognised under Interest income or Interest expense, as appropriate), and those arising for other reasons, which are recognised at their net amount under 'Gains/losses on financial assets and liabilities'. 26 Adjustments due to changes in fair value arising from: • 'Financial assets at fair value with changes in other comprehensive income' are recorded temporarily, in the case of debt instruments in 'Other comprehensive income - Elements that can be reclassified to profit or loss - Financial assets at fair value with changes in other comprehensive income', while in the case of equity instruments are recorded in 'other comprehensive income - Elements that will not be reclassified to line item - Changes in the fair value of equity instruments valued at fair value with changes in other comprehensive income'. Exchange differences on debt instruments measured at fair value with changes in other comprehensive income are recognised under 'Exchange Differences, net' of the income statement. Exchange differences on equity instruments, in which the irrevocable option of being measured at fair value with changes in other comprehensive income has been chosen, are recognised in 'Other comprehensive income - Items that will not be reclassified to profit or loss - Changes in the fair value of equity instruments measured at fair value with changes in other comprehensive income'. • Items charged or credited to 'Items that may be reclassified to profit or loss – Financial assets at fair value through other comprehensive income' and 'Other comprehensive income – Items that may be reclassified to profit or loss – Exchange differences in equity' remain in the Bank´s equity until the asset giving rise to them is impaired or derecognised, at which time they are recognised in the income statement. • Unrealized capital gains on financial assets at fair value through other comprehensive income classified as 'Non-current assets held for sale' because they form part of a disposal group or a discontinued operation that  are recorded in the equity balancing entry 'Other accumulated comprehensive income - Items that can be reclassified in income - Non-current assets as held for sale. v. Hedging transactions The objective of hedge accounting is to represent in the financial statements the effect of an entity's risk management activities when it uses financial instruments to manage exposures arising from specific risks that could affect profit or loss or other comprehensive income (in the case of investments in equity instruments for which the entity has opted to represent changes in the fair value of other comprehensive income). As described in Note 1.b, the Group has adopted IFRS 9 for hedge accounting prospectively, while continuing to apply IAS 39 for fair value hedges in portfolios where the hedged risk is interest rate risk. This change has not resulted in any modifications to the accounting treatment of hedges designated under IAS 39, which remain unchanged in both their designation and accounting treatment For a hedging relationship to meet the requirements set out in Bank of Spain Circular 4/2017, it must meet the following conditions: 1. Instruments that can be designated as hedging instruments include all derivative financial instruments or non-derivative financial instruments measured at fair value through profit or loss, or a combination thereof. In the case of foreign exchange risk hedges, any type of non-derivative financial instrument can also be designated, regardless of its measurement method. 2. Items that can be designated as covered items are all those that are recognized assets or liabilities, firm commitments, highly probable anticipated transactions, and net investments abroad. 3. At the start of coverage, a formal designation and documentation of the hedging relationship must be made, which will include the entity's risk management strategy and objective, identification of the hedging instrument and the covered item, the nature of the covered risk, the methodology for measuring effectiveness, which includes an analysis of the sources of ineffectiveness, and the coverage ratio. The main sources of ineffectiveness based on the risk covered are: a. Interest rate risk: mismatches in time horizons, principal, repricing and payment dates, time value of options, modifications in the hedged item or the hedging instrument. b. Exchange rate risk: in addition to the above, the difference between the interest rates of the two currencies that represents the net cost or benefit of switching cash flows between two currencies with different interest rates. 4. The hedging relationship must be effective, for which there must be an economic relationship between the hedged item and the hedging instrument, credit risk must not have a dominant effect on changes in the value of the economic relationship between the hedging instrument and the hedged item, and the hedging ratio must coincide with that used by the entity in its management. 27 The Group assesses these effectiveness requirements, at the time of designation and on each submission date, through: • The economic relationship between the hedged item and the hedging instrument is demonstrated through a qualitative test, and in the event of non-compliance, through quantitative tests that compare the market value of the hedged items—corresponding to the hedged risk—and the hedging instruments. Likewise, a quantitative analysis of variations in the market values of the hedging instrument and the hedged item is performed prospectively. • The hedge ratio is determined based on the proportion between the amount of the hedged item and the amount of the instrument actually designated by the Group in each hedging relationship. • The credit risk domain assessment is performed through an analysis of the credit exposure of the hedged items and the hedging instruments. Accounting hedges are classified and recorded according to the type of risk they cover, based on the following criteria: • Fair value hedges: These are hedges against exposure to changes in the fair value of the hedged item, attributable to a specific risk. The differences arising from both the hedging instruments and the hedged items (due to the hedged risk) are recognized directly in the profit and loss account. When the fair value hedge is discontinued, the adjustments previously recorded in the hedged item are charged to profit or loss using the effective interest rate method recalculated at the date the hedge ceases to be covered, and must be fully amortized at maturity. In fair value hedges of interest rate risk of a portfolio of financial instruments (macro hedges), regulated by IAS 39, the gains or losses arising from the valuation of the hedging instruments are recognized directly in the profit and loss account, while the gains or losses due to changes in the fair value of the hedged amount (attributable to the hedged risk) are recognized in the profit and loss account using as a counterpart the headings 'Changes in the fair value of hedged items' of a portfolio with interest rate risk hedge (asset or liability), as appropriate. • Cash flow hedges: These are hedges against exposure to changes in cash flows attributable to a specific risk associated with the hedged item. The effective portion of the change in the value of the hedging instrument is temporarily recorded in the equity account 'Other accumulated comprehensive income - Items that may be reclassified in profit or loss - Hedging derivatives. Cash flow hedges (effective portion)' until the hedged item affects profit or loss. From that point onward, it will be recorded in the profit or loss account for the same period as the hedged item, except in cases where it is required to be included in the cost of the non-financial asset or liability, or the anticipated transactions are ultimately recognized as non-financial assets or liabilities. When cash flow hedges are discontinued, the accumulated result of the hedging instrument recognized in the equity heading 'Other accumulated global result' (while the hedge was effective) will continue to be recognized in that heading until the hedged transaction occurs, at which time it will be recorded in profit or loss, unless it is expected that the transaction will not take place, in which case it is recorded immediately in profit or loss. • Net investment hedges of a foreign operation: This is a hedge of the amount corresponding to the reporting entity's share of the net assets of said operation. The effective portion of the hedging instrument is temporarily recorded in the equity account 'Other accumulated comprehensive income - Items that may be reclassified in profit or loss - Net investment hedges' in foreign operations until the gains or losses on the hedged item are recognized in profit or loss. To measure ineffectiveness,the Bank compares the valuation of the hedging instrument with the valuation of the hedged item based on the hedged risk, using different methodologies such as the proxy method or the hypothetical derivative method. The ineffective portion of the cash flow and net investment hedge relationships in foreign operations is recorded directly in the profit and loss account, under the heading 'Net gains or losses from hedge accounting'. The Bank discontinues accounting for hedging relationships when the hedging instrument expires, is sold, or when the hedging relationship becomes ineffective because it is no longer aligned with the risk management objective. In that case, the derivative is then treated as a trading derivative. If a hedging relationship ceases to meet the effectiveness requirements, but the risk management objective remains, the Bank will assess whether to rebalance or adjust the hedging ratio to meet the effectiveness requirements again without discontinuing the hedging relationship. 28 A hedging instrument is generally designated in its entirety, as the factors contributing to its fair value are interdependent. However, IFRS 9 allows certain parts of a hedging instrument to be excluded from its fair value: a. Separating the intrinsic value and the time value of an option and designating only the intrinsic element as the hedging instrument, which is mandatory if the intrinsic value is designated; b. Separating the forward and spot elements of a forward contract and designating only the spot element as the hedging instrument, which will be determined for each hedging relationship. and c. Separate the foreign currency basis spread of a currency derivative and exclude it from the designation of the hedging instrument, as determined for each hedging relationship. Separating these components will improve the effectiveness of the hedge and allows for alternative accounting treatment for the excluded component. This treatment consists of recording the changes in value under the heading 'Other accumulated comprehensive income – Undesignated items' and recording this component in the profit or loss statement, depending on the nature of the hedged item, either over a period of time or at the time the hedged transaction occurs. Additionally, if the entity manages the credit risk of all or part of a financial instrument through the use of credit derivatives, there is the option of designating a fair value credit exposure through profit or loss, provided that the derivative matches the name and priority of the financial instrument being hedged. This designation may be made at the initial recognition of the designated financial instrument or subsequently, with the designation being documented. From its designation, fair value variations (for all its risks, not exclusively credit risk) will be recorded in the profit and loss account. #### e) Derecognition of financial assets and liabilities The accounting treatment of transfers of financial assets depends on the extent to which the risks and rewards associated with the transferred assets are transferred to third parties: 1. If the Bank transfers substantially all the risks and rewards to third parties unconditional -sale of financial assets, sale of financial assets under an agreement to repurchase them at their fair value at the date of repurchase, sale of financial assets with a purchased call option or written put option that is deeply out of the money, securitisation of assets in which the transferor does not retain a subordinated debt or grant any credit enhancement to the new holders, and other similar cases-, the transferred financial asset is derecognised and any rights or obligations retained or created in the transfer are recognised simultaneously. 2. If the Bank retains substantially all the risks and rewards associated with the transferred financial asset -sale of financial assets under an agreement to repurchase them at a fixed price or at the sale price plus interest, a securities lending agreement in which the borrower undertakes to return the same or similar assets, and other similar cases-, the transferred financial asset is not derecognised and continues to be measured by the same criteria as those used before the transfer. In this case, the following items are recognised: a. An associated financial liability, which is recognised for an amount equal to the consideration received and is subsequently measured at amortised cost, unless it meets the requirements for classification under 'Financial liabilities designated at fair value through profit or loss'. b. The income from the transferred financial asset not derecognised and any expense incurred on the new financial liability, without offsetting. 3. If the Bank neither transfers nor retains substantially all the risks and rewards associated with the transferred financial asset -sale of financial assets with a purchased call option or written put option that is not deeply in or out of the money, securitisation of assets in which the transferor retains a subordinated debt or other type of credit enhancement for a portion of the transferred asset, and other similar cases- the following distinction is made: a. If the transferor does not retain control of the transferred financial asset, the asset is derecognised and any rights or obligations retained or created in the transfer are recognised. b. If the transferor retains control of the transferred financial asset, it continues to recognise it for an amount equal to its exposure to changes in value and recognises a financial liability associated with the transferred financial asset. The net carrying amount of the transferred asset and the associated liability is the amortised cost of the rights and obligations retained, if the transferred asset is measured at amortised cost, or the fair value of the rights and obligations retained, if the transferred asset is measured at fair value. Accordingly, financial assets are only derecognised when the rights to the cash flows they generate have expired or when substantially all the inherent risks and rewards have been transferred to third parties. Similarly, financial liabilities are only derecognised when the obligations they generate have been extinguished or when they are acquired with the intention either to cancel them or to resell them. 29 Regarding contractual modifications of financial assets, the Bank distinguishes two main categories depending on whether the new conditions result in the disposal of the asset (and recognition of a new one) or imply the continuation of the original instrument with the new modified terms: • Contractual modifications for commercial or market reasons, which are generally carried out at the request of the debtor to apply current market conditions to the debt. The new contract is considered a new transaction and, consequently, it is necessary to derecognize the original financial asset and recognize a new financial asset subject to the classification and measurement requirements established by Bank of Spain Circular 4/2017.  The new financial asset will be recorded at fair value and, if applicable, the difference between the carrying amount of the asset derecognized and the fair value of the new asset will be recognized in profit or loss. • Modifications due to refinancing or restructuring, in which the payment conditions are modified to allow a customer that is experiencing financial difficulties (current or foreseeable) to meet its payment obligations and that, if such modification had not been made, it would be reasonably certain that it would not be able to meet such payment obligations. In this case, the modification does not result in the derecognition of the financial asset, but rather the original financial asset is maintained and does not require a new assessment of its classification and measurement. When assessing credit impairment, the current credit risk (considering the modified cash flows) should be compared with the credit risk at initial recognition. The gross carrying amount of the financial asset (the present value of the renegotiated or modified contractual cash flows that are discounted at the original effective interest rate of the financial asset) should be recalculated, with a gain or loss recognized in profit or loss for the difference. #### f) Offsetting of financial instruments Financial asset and liability balances are offset, i.e. reported in the balance sheet at their net amount, only if the Banco Santander currently have a legally enforceable right to set off the recognised amounts and intend either to settle on a net basis, or to realise the asset and settle the liability simultaneously. #### g) Impairment of financial assets i. Definition Banco Santander associates an impairment in the value to financial assets measured at amortised cost, debt instruments measured at fair value with changes in other comprehensive income, lease receivables, assets from contracts and loan commitments and the financial guarantees issued that are not measured at fair value through profit or loss. The impairment for expected credit losses is recorded with a charge to the income statement for the period in which the impairment arises. In the event of occurrence, the recoveries of previously recognised impairment losses are recorded in the income statement for the period in which the impairment no longer exists or is reduced. In the case of purchased or originated credit-impaired assets, the Bank only recognizes at the reporting date the changes in the expected credit losses during the life of the asset since the initial recognition as a credit loss. In the case of assets measured at fair value with changes in other comprehensive income, the changes in the fair value due to expected credit losses are charged in the income statement of the year where the change happened, reflecting the rest of the valuation in other comprehensive income. As a rule, the expected credit loss is estimated as the difference between the contractual cash flows to be recovered and the expected cash flows discounted using the original effective interest rate. In the case of purchased or originated credit-impaired assets, this difference is discounted using the effective interest rate adjusted by credit rating. Depending on the classification of financial instruments, which is mentioned in the following sections, the expected credit losses may be along 12 months or during the life of the financial instrument: • 12-month expected credit losses: arising from the potential default events, as defined in the following sections that are estimated to be likely to occur within the 12 months following the reporting date. These losses will be associated with financial assets classified as 'normal risk' as defined in the following sections. • Expected credit losses over the life of the financial instrument: arising from the potential default events that are estimated to be likely to occur throughout the life of the financial instruments. These losses are associated with financial assets classified as 'normal risk under watchlist' or 'doubtful risk'. 30 With the purpose of estimating the expected life of the financial instrument all the contractual terms have been taken into account (e.g. prepayments, duration, purchase options, etc.), being the contractual period (including extension options) the maximum period considered to measure the expected credit losses. In the case of financial instruments with an uncertain maturity period and a component of undrawn commitment (e.g.: credit cards), the expected life is estimated through quantitative analyses to determine the period during which the entity is exposed to credit risk, also considering the effectiveness of management procedures that mitigate such exposure (e.g. the ability to unilaterally cancel such financial instruments, etc.). The following constitute effective guarantees: a. Mortgage guarantees on housing as long as they are first duly constituted and registered in favour of the entity. The properties include: i. Buildings and building elements, distinguishing among: – Houses. – Offices, stores and multi-purpose premises. – Rest of buildings such as non-multi- purpose premises and hotels. ii. Urban and developable ordered land. iii. Rest of properties that classify as: buildings and building elements under construction, such as property development in progress and halted development, and the rest of land types, such as rustic lands. b. Collateral guarantees on financial instruments in the form of cash deposits, debt securities or equity instruments issued by creditworthy issuers. c. Other types of real guarantees, including properties received in guarantee and second and subsequent mortgages on properties, as long as the entity demonstrates its effectiveness. When assessing the effectiveness of the second and subsequent mortgages on properties the entity will implement particularly restrictive criteria. It will take into account, among others, whether the previous charges are in favour of the entity itself or not and the relationship between the risk guaranteed by them and the property value. d. Personal guarantees, as well as the incorporation of new owners, covering the entire amount of the financial instruments and implying direct and joint liability to the entity of persons or other entities whose solvency is sufficiently proven to ensure the repayment of the loan on the agreed terms. The different aspects that the Bank considers for the evaluation of effective guarantees are set out below in relation to the individual analysis. ii. Financial instruments presentation For the purposes of estimating the impairment amount, and in accordance with its internal policies, the Bank classifies its financial instruments (financial assets, commitments and guarantees) measured at amortised cost or fair value through other comprehensive income in one of the following categories: • Normal Risk ('stage 1'): includes all instruments that do not meet the requirements to be classified in the rest of the categories. • Normal risk under watchlist ('stage 2'): includes all instruments that, without meeting the criteria for classification as doubtful or default risk, have experienced significant increases in credit risk since initial recognition. In order to determine whether a financial instrument has increased its credit risk since initial recognition and is to be classified in stage 2, the Group and the Bank consider the following criteria: | | | | --- | --- | | | | | Quantitative criteria | Changes in the risk of a default occurring through the expected life of the financial instrument are analysed and quantified with respect to its credit level in its initial recognition. With the purpose of determining if such changes are considered as significant, with the consequent classification into stage 2, each Group, and therefore the Bank, unit has defined the quantitative thresholds to consider in each of its portfolios taking into account corporate guidelines ensuring a consistent interpretation in all units. Within the quantitative thresholds, two types are considered: A relative threshold is those that compare current credit quality with credit quality at the time of origination in percentage terms of change. In addition, an absolute threshold compares both references in total terms, calculating the difference between the two. These absolute/relative concepts are used homogeneously (with different values) in all geographies. The use of one type of threshold or another (or both) is determined in accordance with the process described in note 50, below, and is marked by the type of portfolio and characteristics such as the starting point of the average credit quality of the portfolio. | | Qualitative criteria | In addition to the quantitative criteria indicated, various indicators are used that are aligned with those used by the Bank in the normal management of credit risk. Irregular positions of more than 30 days and renewals are common criteria applied by the Bank and common to all the Group's  units. Also, each unit can define other qualitative indicators, for each of its portfolios, according to the particularities and normal management practices in line with the policies currently in force (i.e. use of management alerts, etc.). The use of these qualitative criteria is complemented with the use of an expert judgement, under the corresponding governance. | 31 In the case of forbearances, instruments classified as 'normal risk under watchlist' may be generally reclassified to 'normal risk' in the following circumstances: at least two years have elapsed from the date of reclassification to that category or from its forbearance date, the client has paid the accrued principal and interest balance, and the client has no other instruments with more than 30 days past due balances. • Doubtful Risk ('stage 3'): includes financial instruments, overdue or not, in which, without meeting the circumstances to classify them in the category of default risk, there are reasonable doubts about their total repayment (principal and interests) by the client in the terms contractually agreed. Likewise, off-balance-sheet exposures whose payment is probable and their recovery doubtful are considered in stage 3. Within this category, two situations are differentiated: – Doubtful risk for non-performing loans: financial instruments, irrespective of the client and guarantee, with balances more than 90 consecutive days on material arrears for principal, interest or expenses contractually agreed. This category also includes all loan balances for a client  when the operations with more than 90 consecutive days on material arrears are greater than 20% of the amounts pending collection. These instruments may be reclassified to other categories if, as a result of the collection of part of the past due balances, the reasons for their classification in this category do not remain and the client does not have balances more than 90 consecutive days on material arrears in other loans. – Doubtful risk for reasons other than non- performing loans: this category includes doubtful recovery financial instruments that are not more than 90 consecutive days on material arrears. Banco Santander considers that a financial instrument to be doubtful for reasons other than delinquency when one or more combined events have occurred with a negative impact on the estimated future cash flows of the financial instrument. To this end, the following indicators, among others, are considered: a) Negative net equity or decrease because of losses of the client's net equity by at least 50% during the last financial year. b) Continued losses or significant decrease in revenue or, in general, in the client's recurring cash flows. c) Generalised delay in payments or insufficient cash flows to service debts. d) Significantly inadequate economic or financial structure or inability to obtain additional financing by the client. e) Existence of an internal or external credit rating showing that the client is in default. f) Existence of overdue customer commitments with a significant amount to public institutions or employees. These financial instruments may be reclassified to other categories if, as a result of an individualised study, reasonable doubts do not remain about the total repayment under the contractually agreed terms and the client does not have balances of 90 days on material arrears . In the case of forbearances, instruments classified as doubtful risk may be reclassified to the category of 'normal risk under watchlist' when the following circumstances are present: a minimum period of one year has elapsed from the forbearance date, the client has paid the accrued principal and interest amounts, and the client has no other loan balances of 90 days on material arrears. • Default Risk: includes all financial assets, or part of them, for which, after an individualised analysis, their recovery is considered remote due to a notorious and irrecoverable deterioration of their solvency. In any case, except in the case of operations with real guarantees that cover more than 10% of the amount of the operation, in general the Bank considers as remote recovery: the operations of holders that are in the liquidation phase of the insolvency creditors, doubtful operations due to delinquency that have been in this category for more than 4 years and doubtful operations due to delinquency whose part not covered by real guarantees has been maintained with 100% credit risk coverage for more than two years. A financial asset amount is maintained in the balance sheet until they are considered as a 'default risk', either all or a part of it, and the write-off is registered against the balance sheet. In the case of operations that have only been partially derecognised, for forgiveness reasons or because part of the total balance is considered unrecoverable, the remaining amount shall be fully classified in the category of 'doubtful risk', except where duly justified. The classification of a financial asset, or part of it, as a 'default risk' does not involve the disruption of negotiations and legal proceedings to recover the amount. 32 iii. Impairment valuation assessment Banco Santander has policies, methods and procedures in place to hedge its credit risk, both due to the insolvency attributable to counterparties and its residence in a specific country. These policies, methods and procedures are applied in the concession, study and documentation of financial assets, commitments and guarantees, as well as in the identification of their impairment and in the calculation of the amounts needed to cover their credit risk. The impairment represents the best estimation of the financial assets expected credit losses at the balance sheet date, assessed both individually and collectively. • Individually: for the purposes of estimating the provisions for credit risk arising from the insolvency of a financial instrument, the Bank individually assesses impairment by estimating the expected credit losses on those financial instruments that are considered to be significant and with sufficient information to make such an estimate. Therefore, this classification mostly includes wholesale banking customers —Corporations, specialised financing— as well as some of the largest companies —Chartered and real estate developers— from retail banking. The determination of the perimeter in which the individualised estimate is applied is detailed in a later section. The individually assessed impairment estimate is equal to the difference between the gross carrying amount of the financial instrument and the estimated value of the expected cash flows receivable discounted using the original effective interest rate of the transaction. The estimate of these cash flows takes into account all available information on the financial asset and the effective guarantees associated with that asset. This estimation process is detailed below. • Collectively: the Bank also assesses impairment by estimating the expected credit losses collectively in cases where they are not assessed on an individual basis. This includes, for example, loans with individuals, sole proprietors or businesses in retail banking  subject to a standardised risk management. For the purposes of the collective assessment of expected credit losses, the Bank has consistent and reliable internal models. For the development of these models, instruments with similar credit risk characteristics that are indicative of the debtors' capacity to pay are considered. The credit risk characteristics used to group the instruments are, among others: type of instrument, debtor's sector of activity, geographical area of activity, type of guarantee, aging of past due balances and any other factor relevant to estimating the future cash flows. Banco Santander performs retrospective and monitoring tests to evaluate the reasonableness of the collective estimate. On the other hand, the methodology required to estimate the expected credit loss due to credit events is based on an unbiased and weighted consideration by the probability of occurrence of a series of scenarios, considering a range of three to five possible future scenarios, which could have an impact on the collection of contractual cash flows, always taking into account the time value of money, as well as all available, reasonable and sustainable information on past events, current conditions and forecasts of the evolution of macroeconomic scenarios that are shown to be relevant for the estimation of this amount (for example: GDP (Gross Domestic Product), housing price, unemployment rate, etc.). The estimation of expected losses requires expert judgment and the support of historical, current and future information. The probability of loss is measured considering past events, the present situation and future trends of macroeconomic scenarios. Banco Santander uses forward-looking information in both internal risk management and prudential regulation processes, so that for the calculation of the impairment loss allowance, various scenarios are incorporated that take advantage of the experience with such information, thus ensuring consistency in obtaining the expected loss. The complexity of the estimation in this exercise has been derived from the current macroeconomic scenario as a consequence of the complex geopolitical situation, as well changes in inflations levels and interest rates, which has generated uncertainty in economic evolution. Banco Santander has internally ensured the criteria to be followed for guarantees received from government bodies, both through credit lines and other public guarantees, so that when they are adequately reflected in each of the contracts, they are recognised as mitigating factors of the potential expected losses, and therefore of the provisions to be recognised, based on the provisions of the applicable standard. Furthermore, where applicable, these guarantees are appropriately reflected in the mitigation of the significant increase in risk, considering their nature as personal guarantees. For the estimation of the parameters used in the estimation of impairment provisions -EAD (exposure at default), PD (probability of default), LGD (loss given default)-, the Bank based their experience in developing internal models for the estimation of parameters both in the regulatory area and for management purposes, adapting the development of the impairment provision models under Bank of Spain Circular 4/2017 and subsequent modifications. • Exposure at default: is the amount of estimated risk incurred at the time of the counterparty's analysis. 33 • Probability of default: is the estimated probability that the counterparty will default on its principal and/or interest payment obligations. • Loss given default: is the estimate of the severity of the loss incurred in the event of non-compliance. It depends mainly on the updating of the guarantees associated with the operation and the future cash flows that are expected to be recovered. In any case, when estimating the flows expected to be recovered, portfolio sales are included. It should be noted that due to the Bank's recovery policy and the experience observed in relation to the prices of past sales of assets classified as stage 3 and/or default risk, there is no substantial divergence between the flows obtained from recoveries after performing recovery management of the assets with those obtained from the sale of portfolios of assets discounting structural expenses and other costs incurred. The definition of default implemented by the Bank for the purpose of calculating the impairment provision models is based on the definition in Article 178 of Regulation 575/2013 of the European Union (CRR), which is fully aligned with the requirements of Bank of Spain Circular 4/2017, which considers that a 'default' exists in relation to a specific customer/contract when at least one of the following circumstances exists: the entity considers that there are reasonable doubts about the payment of all its credit obligations or that the customer/contract is in an irregular situation for more than 90 consecutive days past due material balances with respect to any significant credit obligation. Banco Santander aligned partially and voluntarily during 2022 the accounting definition of Stage 3, as well as the calculation of impairment provision models, to the New Definition of Default, incorporating the criteria defined by the EBA in its implementation guide of the definition of default, capturing the economic deterioration of the operations (days in default - on a daily basis - and materiality thresholds - minimum amount in arrears). The alignment of criteria was done taking into account the criteria of IFRS 9 as well as the accounting principles of unbiased presentation of financial information. Banco Santander  registered an increase in the default rate at around 19 basis points, with no material impact on the provision figures for credit risk. In addition, the Bank considers the risk generated in all cross-border transactions due to circumstances other than the usual commercial risk of insolvency (sovereign risk, transfer risk or risks arising from international financial activity, such as wars, natural catastrophes, balance of payments crisis, etc.). Bank of Spain Circular 4/2017 includes a series of practical solutions that can be implemented by entities, with the aim of facilitating its implementation. In order to achieve a complete and high-level implementation of the standard, and following the best practices of the industry, the  Bank these practical solutions adapting them to their own characteristics and circumstances: • Rebuttable presumption that the credit risk has increased significantly, when payments are more than 30 days past due: this threshold is used as an additional, but not primary, indicator of significant risk increase. • Assets with low credit risk at the reporting date: the Bank adopts this practice prioritizing its reduced and punctual use and its systematic and periodic justification through quantitative evidence. This information is provided in more detail in note 50.b. #### iv.Detail of individual estimate of impairment For the individual estimate of the assessment for impairment of the financial asset, the Bank has a specific methodology to estimate the value of the cash flows expected to be collected: • Recovery through the debtor's ordinary activities (going approach). • Recovery through the execution and sale of the collateral guaranteeing the operations (gone approach). Gone approach: a. Evaluation of the effectiveness of guarantees Banco Santander assesses the effectiveness of all the guarantees associated considering the following: • The time required to execute these guarantees. • Banco Santander's ability to enforce or assert these guarantees in its favour. • The existence of limitations imposed by each local unit ´s regulation on the foreclosure of collateral. Under no circumstances the Bank considers that a guarantee is effective if its effectiveness depends substantially on the solvency of the debtor, as could be the case: • Promises of shares or other securities of the debtor himself when their valuation may be significantly affected by a debtor's default. • Personal cross-collateralisation: when the guarantor of a transaction is, at the same time, guaranteed by the holder of that transaction. The different types of effective guarantees have been detailed in section i. Definition 34 b. Valuation of guarantees Banco Santander assesses the guarantees on the basis of their nature in accordance with the following: • Mortgage guarantees on properties associated with financial instruments, using complete individual valuations carried out by independent valuation experts and under generally accepted valuation standards. If this is not possible, alternative valuations are used with duly documented and approved internal valuation models. • Personal guarantees are valued individually on the basis of the guarantor´s updated information. • The rest of the guarantees are valued based on current market values. c. Adjustments to the value of guarantees and estimation of future cash flow inflows and outflows. Banco Santander applies a series of adjustments to the value of the guarantees in order to improve the reference values: • Adjustments based on the historical sales experience for certain types of assets. • Individual expert adjustments based on additional management information. Likewise, to adjust the value of the guarantees, the time value of money is taken into account based on the historical experience , estimating: • Period of adjudication. • Estimated time of sale of the asset. In addition, the Bank takes into account all those cash inflows and outflows linked to that guarantee until it is sold: • Possible future income commitments in favour of the borrower which will available after the asset is awarded. • Estimated foreclosure costs. • Asset maintenance costs, taxes and community costs. • Estimated marketing or sales costs. Finally, since it is considered that the guarantee will be sold in the future, the Bank applies an additional adjustment ('index forward') in order to adjust the value of the guarantees to future valuation expectations. v. Impairment individual assessment scope Banco Santander determines the perimeter over which it makes an estimate of the assessment for impairment on an individual basis based on a relevance threshold and the stage in which the operations are located. In general, the Bank applies the individualised calculation of expected losses to the significant exposures classified in stage 3, although Banco Santander, S.A. has also extended its analyses to some of the exposures classified in stage 2. It should be noted that, in any case and irrespective of the stage in which their transactions are carried out, for customers who do not receive standardised treatment, a relational risk management model is applied, with individualised treatment and monitoring by the assigned risk analyst. In addition to wholesale customers (Santander Corporate & Investment Banking or SCIB) and large companies, this relational management model also includes other segments of smaller companies for which there is information and capacity for more personalised and expert analysis and monitoring.  As indicated in the Bank's wholesale credit model, the individual treatment of the client facilitates the continuous updating of information. The risk assumed must be followed and monitored throughout its life cycle, enabling anticipation and action to be taken in the event of possible impairments. In this way, the customer's credit quality is analysed individually, taking into account specific aspects such as his competitive position, financial performance, management, etc. In the wholesale risk management model, every customer with a credit risk position is assigned a rating, which has an associated probability of customer default. Thus, individual analysis of the debtor triggers a specific rating for each customer, which determines the appropriate parameters for calculating the expected loss, so that it is the rating itself that initially modulates the necessary coverage, adjusting the severity of the possible loss to the guarantees and other mitigating factors that the customer may have available. In addition, if as a result of this individualised monitoring of the customer, the analyst finally considers that his coverage is not sufficient, he has the necessary mechanisms to adjust it under his expert judgement, always under the appropriate governance. ![]() 1 The assets in a situation of 'stopped development' are included under 'land. 35 #### h) ‘Non-current assets’ and ‘liabilities associated #### with non-current assets held for sale’ Non-current assets held for sale' includes the carrying amount of individual items, disposal groups or items forming part of a business unit earmarked for disposal (discontinued operations), whose sale in their present condition is highly likely to be completed within one year from the reporting date. Therefore, the recovery of the carrying amount of these items -which can be of a financial nature or otherwise- will foreseeably be effected through the proceeds from their disposal. Specifically, property or other non-current assets received by Banco Santander as total or partial settlement of their debtors’ payment obligations to them are deemed to be 'Non-current assets held for sale', unless the Bank has decided to make continuing use of these assets. 'Liabilities associated with non-current assets held for sale' includes the balances payable arising from the assets held for sale or disposal groups and from discontinued operations. 'Non-current assets and disposal groups of items that have been classified as held for sale' are generally recognised at the date of their allocation to this category and are subsequently valued at the lower of their fair value less costs to sell or its book value. 'Non-current assets and disposal groups of items that are classified as held for sale' are not amortised as long as they remain in this category. The valuation of the portfolio of non-current assets held for sale has been made in compliance with the requirements of Bank of Spain Circular 4/2017 , and subsequent amendments, in relation to the estimate of the fair value of tangible assets and the value-in-use of financial assets. The value of the portfolio is determined as the sum of the values of the individual elements that compose the portfolio, without considering any total or batch grouping in order to correct the individual values. For the purposes of its consideration in initial recognition, the Bank obtains, at the time of award, the fair value of the corresponding asset by requesting an appraisal from external valuation agencies. Banco Santander has in place a corporate policy that ensures the professional competence and the independence and objectivity of the external appraisal agencies, in accordance with the regulations, which require appraisal agencies to meet independence, neutrality and credibility requirements, so that the use of their estimates does not reduce the reliability of its valuations. This policy establishes that all the appraisal companies and agencies with which the Bank works in Spain should be registered in the Official Register of the Bank of Spain and that the appraisals performed by them should follow the methodology established in Order ECO/805/2003, of 27 March. The main appraisal companies and agencies with which the Bank worked in 2025 are as follows: Tinsa Tasaciones Inmobiliarias, S.A.U., Sociedad de Tasación, S.A., Global Valuation, S.A.U., Instituto de Valoraciones, S.A., Euroevaluaciones, S.A. and Valoraciones Mediterráneo, S.A. At 31 December 2025 the fair value minus the costs to sell of non-current assets held for sale exceeded their carrying amount by EUR 172 million (EUR 161 million in 2024); however, in accordance with the applicable legislation, this unrealised gain could not be recognised. Banco Santander, in compliance with Bank of Spain Circular 4/2017 , and subsequent amendments, on public and private financial reporting standards and financial statement models, has developed a methodology that enables it to estimate the fair value and costs of sale of assets foreclosed or received in payment of debts. This methodology is based on the classification of the portfolio of foreclosed assets into different segments. Segmentation enables the intrinsic characteristics of Banco Santander's portfolio of foreclosed assets to be differentiated, so that assets with homogeneous characteristics are grouped by segment. Thus, the portfolio is segmented into (i) finished assets of a residential and tertiary nature, (ii) developments in progress and (iii) land 1 . In determining the critical segments in the overall portfolio, assets are classified on the basis of the nature of the asset and its stage of development. This segmentation is made in order to seek the liquidation of the asset (which should be carried out in the shortest possible time). When making decisions, the situation and/or characteristics of the asset are fundamentally taken into account, as well as the evaluation of all the determining factors that favour the recovery of the debt. For them, the following aspects are analyzed, among others: • The time that has elapsed since the adjudication. • The transferability and contingencies of the foreclosed asset. • The economic viability from the real estate point of view with the necessary investment estimate. • The expenses that may arise from the marketing process. • The offers received, as well as the difficulties in finding buyers. ![]() 2 Assets qualified as protected housing are taken into account. The maximum legal value of these assets is determined by the VPO module, obtained from the result of multiplying the State Basic Module (MBE) by a zone coefficient determined by each autonomous community. To carry out the valuation of a protected property, the useful surface area is used in accordance with current regulations. 36 In the case of real estate assets foreclosed in Spain, which represent 76% of the Group’s total non-current assets held for sale, the valuation of the portfolio is carried out by applying the following models: • Market Value Model used in the valuation of finished properties of a residential nature (mainly homes and car parks) and properties of a tertiary nature (offices, commercial premises and multipurpose buildings). For the valuation of finished assets whose availability for sale is immediate, a market sale value provided by a third party external to Banco Santander is considered, calculated under the AVM methodology by the comparable properties method adjusted by our experience in selling similar assets, given the term, price, volume, trend in the value of these assets and the time elapsing until their sale and discounting the estimated costs of sale. The market value is determined on the basis of the definition established by the International Valuation Standards drawn up by the IVSC (International Valuation Standards Council), understood as the estimated amount for which an asset or a liability should be exchanged on the measurement date between a willing buyer and a willing seller, in an arm's length transaction, after appropriate marketing, and in which the parties have acted with sufficient information, prudently and without coercion. The current market value of the properties is estimated on the basis of automated valuations obtained by taking comparable properties as a reference; simulating the procedure carried out by an appraiser in a physical valuation according to Order ECO 805/2003: selection of properties and obtaining the unit value by applying homogenisation adjustments. The selection of the properties is carried out by location within the same real estate cluster and according to the characteristics of the properties, filtering by type 2 , surface area range and age. The model enables a distinction to be made within the municipality under study as to which areas are similar and comparable and therefore have a similar value in the property market, discriminating between which properties are good comparators and which are not. Adjustments to homogenize the properties are made according to: (i) the age of the property according to the age of the property to be valued, (ii) the deviation of the built area from the common area with respect to the property to be valued and (iii) by age of the date of capture of the property according to the price evolution index of the real estate market. In addition, for individually significant assets, complete individual valuations are carried out, including a visit to the asset, market analysis (data relating to supply, demand, current sale or rental price ranges and supply- demand and revaluation expectations) and an estimate of expected income and costs. For this segmentation of assets, when they are completed, the real costs are known and the actual expenses for the marketing and sale of the asset must be taken into account. Therefore, Banco Santander uses the actual costs in its calculation engine or, failing that, those estimated on the basis of its observed experience. • Market Value Model according to Evolution of Market Values used to update the valuation of developments in progress. The valuation model estimates the current market value of the properties based on complete individual valuations by third parties, calculated from the values of the feasibility studies and development costs of the promotion, as well as the selling costs, distinguishing by location, size and type of property. The inputs used in the valuation model for residential assets under construction are actual revenues and costs. For this purpose, in order to calculate the investment flows, Banco Santander considers, on the basis of the feasibility studies, the expenditure required for construction, the professional fees relating to the project and to project management, the premiums for mandatory building insurance, the developer's administrative expenses, licenses, taxes on new construction and fees, and urban development charges. With respect to the calculation of income flows, Banco Santander takes into account the square metres built, the number of homes under construction and the estimated selling price over 1.5 years. The market value will be the result of the difference between the income flows and the investment flows estimated at each moment. • Land Valuation model. The methodology followed by the Bank regarding land valuation consists of updating the individual reference valuation of each of the land on an annual basis, through updated valuation valuations carried out by independent professionals and following the methodology established in the Order ECO/805/2003, of 27 March, whose main verifications in the case of land valuation, regardless of the degree of urbanisation of the land, correspond to: – Visual verification of the assessed property. – Registry description. 37 – Urban planning. – Visible easements. – Visible state of occupation, possession, use and exploitation. – Protection regime. – Apparent state of preservation. – Correspondence with cadastral property. – Existence of expropriation procedure, expropriation plan or project, administrative resolution or file that may lead to expropriation. – Expiry of the urbanization or building deadlines. – Existence of a procedure for failure to comply with obligations. – Verification of surfaces. For the purposes of valuation, the land will be classified in the following levels: – Level I: It will include all the lands that do not belong to level II. – Level II: It shall include land classified as undeveloped where building is not allowed for uses other than agriculture, forestry, livestock or linked to an economic exploitation permitted by the regulations in force. Also included are lands classified as developable that are not included in a development area of urban planning or that, in such an area, the conditions for its development have not been defined. In those cases where Banco Santander does not have an updated reference value through an ECO valuation for the current year, we use as a reference value the latest available ECO valuation reduced or corrected by the average annual coverage ratio of the land on which we have obtained an updated reference value, through an ECO valuation. Banco Santander applies a discount to the aforementioned reference values that takes into account both the discount on the reference value in the sales process and the estimated costs of marketing or selling the land ; discount on reference value = % discount on sales + % marketing costs being: – % discount on Sales: = 100 - (sales price / updated appraisal value). – marketing costs: calculated on the basis of our historical experience in sales and in accordance with the marketing management fees negotiated with our suppliers of this type of service. In this way Banco Santander obtains the corrected market value, an amount that we compare with the net cost of each piece of land to determine its correct valuation and conclude with our valuation process. In addition, in relation to the previously mentioned valuations, less costs to sell, are contrasted with the sales experience of each type of asset in order to confirm that there is no significant difference between the sale price and the valuation. Impairment losses on an asset or disposal group arising from a reduction in its carrying amount to its fair value (less costs to sell) are recognised under 'Gains or (losses) on non-current assets held for sale not classified as discontinued operations' in the income statement. The gains on a non-current asset held for sale resulting from subsequent increases in fair value (less costs to sell) increase its carrying amount and are recognised in the consolidated income statement up to an amount equal to the impairment losses previously recognised. #### i) Insurance contracts linked to pensions The item 'Insurance contracts linked to pensions', included within the heading 'Other assets' (see note 2.m), will include the fair value of the insurance policies to cover pension commitments that must be recorded as a separate asset for not meeting the requirements established in regulation 35 of Bank of Spain Circular 4/2017 and subsequent modifications, to be considered plan assets. #### j) Tangible assets Tangible assets includes the amount of buildings, land, furniture, vehicles, computer hardware and other fixtures owned by Banco Santander or acquired under finance leases. Tangible assets are classified by use as follows: i. Property, plant and equipment for own use Property, plant and equipment for own use – including tangible assets received by the Bank in full or partial satisfaction of financial assets representing receivables from third parties which are intended to be held for continuing use and tangible assets acquired under finance leases– are presented at acquisition cost, less the related accumulated depreciation and any estimated impairment losses (carrying amount higher than recoverable amount). Depreciation is calculated, using the straight-line method, on the basis of the acquisition cost of the assets less their residual value. The land on which the buildings and other structures stand has an indefinite life and, therefore, is not depreciated. The annual tangible asset depreciation charge is recognised in the income statement and are essentially equivalent to the following amortization percentages (determined based on the years of estimated useful life, on average, of the different elements): 38 | | | | --- | --- | | | | | | Average annual rate | | Buildings for own use | 2.00% | | Furniture | 10.00% | | Fixtures | 5.00% | | IT equipment | 25.00% | | Vehicles | 16.00% | | Other | 5.00% | | Lease use rights | Less than the lease term or the useful life of the underlying asset | At the end of each reporting period, Banco Santander assesses whether there is any indication that the carrying amount of an asset exceeds its recoverable amount, in which case they write down the carrying amount of the asset to its recoverable amount and adjust future depreciation charges in proportion to its adjusted carrying amount and to its new remaining useful life, if the useful life needs to be re-estimated. Similarly, if there is an indication of a recovery in the value of a tangible asset, Banco Santander recognises the reversal of the impairment loss recognised in prior periods and adjust the future depreciation charges accordingly. In no circumstances may the reversal of an impairment loss on an asset raise its carrying amount above that which it would have if no impairment losses had been recognised in prior years. The estimated useful lives of the items of property, plant and equipment for own use are reviewed at least at the end of the reporting period with a view to detecting significant changes therein. If changes are detected, the useful lives of the assets are adjusted by correcting the depreciation charge to be recognised in the income statement in future years on the basis of the new useful lives. Upkeep and maintenance expenses relating to property, plant and equipment for own use are recognised as an expense in the period in which they are incurred, since they do not increase the useful lives of the assets. ii. Investment property 'Investment property' reflects the net values of the land, buildings and other structures held either to earn rentals or for obtaining profits by sales due to future increase in market prices. The criteria used to recognise the acquisition cost of investment property, to calculate its depreciation and its estimated useful life and to recognise any impairment losses thereon are consistent with those described in relation to property, plant and equipment for own use. In the case of investment properties that support obligations to pay a return directly linked to fair value, or to the returns of certain assets including the investment property itself, such properties are measured using the fair value model. In order to evaluate the possible impairment Banco Santander determines periodically the fair value of its investment property so that, at the end of the reporting period, the fair value reflects the market conditions of the investment property at that date. This fair value is determined annually, taking as benchmarks the valuations performed by independent experts. The methodology used to determine the fair value of investment property is selected based on the status of the asset in question; thus, for properties earmarked for lease, the valuations are performed using the sales comparison approach, whereas for leased properties the valuations are made primarily using the income capitalisation approach and, exceptionally, the sales comparison approach. In the sales comparison approach, the property market segment for comparable properties is analysed, inter alia, and, based on specific information on actual transactions and firm offers, current prices are obtained for cash sales of those properties. The valuations performed using this approach are considered as Level 2 valuations. In the income capitalisation approach, the cash flows estimated to be obtained over the useful life of the property are discounted taking into account factors that may influence the amount and actual obtainment thereof, such as: (i) the payments that are normally received on comparable properties; (ii) current and probable future occupancy; (iii) the current or foreseeable default rate on payments. The valuations performed using this approach are considered as Level 3 valuations, since significant unobservable inputs are used, such as current and probable future occupancy and/or the current or foreseeable default rate on payments. iii. Assets leased out under an operating lease 'Property, plant and equipment' - Leased out under an operating lease reflects the amount of the tangible assets, other than land and buildings, leased out by the Bank under an operating lease. The criteria used to recognise the acquisition cost of assets leased out under operating leases, to calculate their depreciation and their respective estimated useful lives and to recognise the impairment losses thereon are consistent with those described in relation to property, plant and equipment for own use. #### k) Accounting for leases The main aspects contained in the regulation Bank of Spain Circular 2/2018 adopted by the Bank are included below: When the Bank acts as lessee, it recognises a right-of- use asset representing its right to use the underlying leased asset with a corresponding lease liability on the date on which the leased asset is available for use by the Bank. 39 Each lease payment is allocated between liability and finance charge. The finance charge is allocated to the income statement during the term of the lease in such a way as to produce a constant periodic interest rate on the remaining balance of the liability for each year. The right-of-use asset is depreciated over the useful life of the asset or the lease term, whichever is shorter, on a straight-line basis. If the Bank is reasonably certain to exercise a purchase option, the right-of-use asset is amortized over the useful life of the underlying asset. Assets and liabilities arising from a lease are initially measured at present value. Lease liabilities include the net present value of the following lease payments: • Fixed payments (including inflation-linked payments), less any lease incentive receivable. • Variable lease payments that depend on an index or rate. • The amounts expected to be paid by the lessee under residual value guarantees. • The exercise price of a purchase option if the lessee is reasonably certain that it will exercise that option. • Lease termination penalty payments, if the term of the lease reflects the lessee's exercise of that option. Lease payments are discounted using the interest rate implicit in the lease. When this interest rate cannot be obtained, the interest rate used in these cases, is the lessee's incremental borrowing rate at the related date. For this purpose, the entity has calculated this incremental borrowing rate taking as reference the listed debt instruments issued by the Bank; in this regard, the Bank has estimated different interest rate curves depending on the currency and economic environment in which the contracts are located. In order to construct the incremental borrowing rate, a methodology has been developed at the corporate level. This methodology is based on the need for each entity to consider its economic and financial situation, for which the following factors must be considered: • Economic and political situation (country risk). • Credit risk of the company. • Monetary policy. • Volume and seniority of the company’s debt instrument issues. The incremental borrowing rate is defined as the interest rate that a lessee would have to pay for borrowing, given a similar period to the duration of the lease and with similar security, the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment . The Group entities have a wide stock and variety of financing instruments issued in different currencies to that of the euro (pound, dollar, etc.) that provide sufficient information to be able to determine an 'all in rate' (reference rate plus adjustment for credit spread at different terms and in different currencies). In circumstances, where the Bank, has its own financing, this has been used as the starting point for determining the incremental borrowing rate . Right-of-use assets are valued at cost which includes the following: • The amount of the initial measurement of the lease liability. • Any lease payment made at or before the commencement date less any lease incentive received. • Any initial direct costs. • Restoration costs. Banco Santander recognises the payments associated with short-term leases and leases of low-value assets on a straight-line basis as an expense in the income statement. Short-term leases are leases with a lease term less than or equal to 12 months (a lease that contains a purchase option is not a short term lease). #### l) Intangible assets Intangible assets are identifiable non-monetary assets (separable from other assets) without physical substance which arise as a result of a legal transaction or which are developed internally by Banco Santander. Only assets whose cost can be measured reliably and it is likely that the Bank obtains future economic benefits are recognised. Intangible assets are recognised initially at acquisition or production cost and are subsequently measured at cost less any accumulated amortisation and any accumulated impairment losses. i. Goodwill Any excess of the cost of the investments in the subsidiaries, joint ventures and associates accounted for using the equity method over the corresponding underlying carrying amounts acquired, adjusted at the date of first-time consolidation, is allocated as follows: a. If it is attributable to specific assets and liabilities of the companies acquired, by increasing the value of the assets (or reducing the value of the liabilities) whose fair values were higher (lower) than the carrying amounts at which they had been recognised in the acquired entities’ balance sheets. 40 b. If it is attributable to specific intangible assets, by recognising it explicitly in the balance sheet provided that the fair value of these assets within twelve months following the date of acquisition can be measured reliably. c. The remaining amount is recognised as goodwill, which is allocated to one or more cash-generating units (CGU) (a cash-generating unit is the smallest identifiable group of assets that, as a result of continuing operation, generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets). The cash-generating units represent the Bank’s geographical and/or business segments. Goodwill (only recognised when it has been acquired by consideration) represents, therefore, a payment made by the acquirer in anticipation of future economic benefits from assets of the acquired entity that are not capable of being individually identified and separately recognised. Goodwill, in accordance with Bank of Spain Circular 4/2017, is to be amortized over a 10-year period unless otherwise stated. The debits to the income statements for the amortisation of these assets are recorded under the section ‘Amortisation’ in the income statement. At the end of each annual reporting period or whenever there is any indication of impairment goodwill is reviewed for impairment (i.e. a reduction in its recoverable amount to below its carrying amount) and, if there is any impairment, the goodwill is written down with a charge to 'Impairment or reversal of impairment on non-financial assets, net - Intangible assets' in the income statement. An impairment loss recognised for goodwill is not reversed in a subsequent period. In the event of sale or departure of an activity that is part of a CGU, the part of the goodwill that can be assigned to said activity would be written-off, taking as a reference the relative value of the same over the total of the CGU at the time of sale or abandonment. If applicable, the distribution by currency of the remaining goodwill will be performed based on the relative values of the remaining activities. ii. Other intangible assets Other intangible assets includes the amount of identifiable intangible assets, such as purchased customer lists and computer software. In accordance with Rule Twenty Eight of Bank of Spain Circular 4/2017, for the financial statements (individual and consolidated) not subject to the framework of International Financial Reporting Standards, intangible assets will be considered assets with a limited useful life. An intangible assets useful life may not exceed the period during which the entity is entitled to use the asset. If the right of use is for a limited period that can be renewed, the useful life will include the renewal period only when there is evidence that the renewal will be carried out without significant cost. Intangible assets shall be amortized in accordance with their useful life. Banco Santander reviews, at least at the end of each year, the amortisation period and the amortisation method of each of its intangible assets and, if it considers that they are not appropriate, the impact will be treated as a change in its accounting estimates. The intangible asset amortisation charge is recognised under 'Depreciation and amortisation' in the income statement. In both cases Banco Santander recognises any impairment loss on the carrying amount of these assets with a charge to 'Impairment or reversal of impairment on non-financial assets, net - Intangible assets in the income statement. The criteria used to recognise the impairment losses on these assets and, where applicable, the reversal of impairment losses recognised in prior years are similar to those used for tangible assets (see note 2.j). Internally developed computer software Internally developed computer software is recognised as an intangible asset if, among other requisites (basically the Bank’s ability to use or sell it), it can be identified and its ability to generate future economic benefits can be demonstrated. Expenditure on research activities is recognised as an expense in the year in which it is incurred and cannot be subsequently capitalised into the carrying amount of the intangible asset. #### m) Other assets Other assets' in the balance sheet includes the amount of assets not recorded in other items, the breakdown being as follows: • Inventories: this item includes the amount of assets, other than financial instruments, that are held for sale in the ordinary course of business, that are in the process of production, construction or development for such purpose, or that are to be consumed in the production process or in the provision of services. Inventories include land and other property held for sale in the property development business. Inventories are measured at the lower of cost and net realisable value, which is the estimated selling price of the inventories in the ordinary course of business, less the estimated costs of completion and the estimated costs required to make the sale. 41 Any write-downs of inventories -such as those due to damage, obsolescence or reduction of selling price- to net realisable value and other impairment losses are recognised as expenses for the year in which the impairment or loss occurs. Subsequent reversals are recognised in the income statement for the year in which they occur. The carrying amount of inventories is derecognised and recognised as an expense in the period in which the revenue from their sale is recognised. ▪ Other: this item includes the balance of all prepayments and accrued income (excluding accrued interest, fees and commissions), the net amount of the difference between pension plan obligations and the value of the plan assets with a balance in the entity’s favour, when this net amount is to be reported in the balance sheet, and the amount of any other assets not included in other items. #### n) Other liabilities 'Other liabilities' includes the balance of all accrued expenses and deferred income, excluding those related to interests and fees on financial instruments, as well as the amount of any other liabilities not included in other categories. #### o) Provisions and contingent liabilities (assets) When preparing the financial statements of the Bank, Banco Santander makes a distinction between: • Provisions: credit balances covering present obligations at the reporting date arising from past events which could give rise to a loss for the Banco Santander, which is considered to be likely to occur and certain as to its nature but uncertain as to its amount and/or timing. ▪ Contingent liabilities: possible obligations that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more future events not wholly within the control of the Bank. They include the present obligations of the Bank when it is not probable that an outflow of resources embodying economic benefits will be required to settle them. Banco Santander does not recognise the contingent liability. The Bank will disclose a contingent liability, unless the possibility of an outflow of resources embodying economic benefits is remote. Irrevocable contingent payments (ICPs), corresponding to payment facilities allowed under the annual contributions of certain levies, are recorded in accordance with the definitions mentioned above. In this regard, on 14 November 2025, the Group learned that the CJEU had definitively resolved the dispute concerning the CPI contributions made by a financial institution to the Single Resolution Fund, upholding the judgment of the General Court of 25 October 2023, which ruled against said financial institution regarding its request for the return of guarantees linked to irrevocable payment commitments for a Group entity whose license had been withdrawn. In light of this ruling, it was concluded that it was not necessary to modify the accounting entries that the Santander Group has made when using these facilities to make contributions corresponding to this levy or to other similar levies that also allow for such contributions. ▪ Contingent assets: possible assets that arise from past events and whose existence is conditional on, and will be confirmed only by, the occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the Bank. Contingent assets are not recognised in the balance sheet or in the income statement, but rather are disclosed in the notes, provided that it is probable that these assets will give rise to an increase in resources embodying economic benefits. Banco Santander´s financial statements include all the material provisions with respect to which it is considered that it is more likely than not the obligation will have to be settled. In accordance with accounting standards, contingent liabilities must not be recognised in the consolidated financial statements, but must rather be disclosed in the Notes. Provisions (which are quantified on the basis of the best information available on the consequences of the event giving rise to them and are reviewed and adjusted at the end of each year) are used to cater for the specific obligations for which they were originally recognised. Provisions are fully or partially reversed when such obligations cease to exist or are reduced. Provisions are classified according to the obligations covered as follows (see note 23): • Provision for pensions and similar obligations: includes the amount of all the provisions made to cover post-employment benefits, including obligations to pre-retirees and similar obligations. 42 • Provisions for contingent liabilities and commitments: include the amount of the provisions made to cover contingent liabilities -defined as those transactions in which the Bank guarantees the obligations of a third party, arising as a result of financial guarantees granted or contracts of another kind- and contingent commitments -defined as irrevocable commitments that may give rise to the recognition of financial assets. • Provisions for taxes and other legal contingencies and Other provisions: include the amount of the provisions recognised to cover tax and legal contingencies and litigation and the other provisions recognised by Banco Santander. Other provisions includes, inter alia, any provisions for restructuring costs and environmental measures. #### p) Own equity instruments Own equity instruments are those meeting both of the following conditions: ▪ The instruments do not include any contractual obligation for the issuer (i) to deliver cash or another financial asset to a third party; or (ii) to exchange financial assets or financial liabilities with a third party under conditions that are potentially unfavourable to the issuer. ▪ The instruments will or may be settled in the issuer’s own equity instruments and are: (i) a non-derivative that includes no contractual obligation for the issuer to deliver a variable number of its own equity instruments; or (ii) a derivative that will be settled by the issuer through the exchange of a fixed amount of cash or another financial asset for a fixed number of its own equity instruments. Transactions involving own equity instruments, including their issuance and cancellation, are charged directly to equity. Changes in the value of instruments classified as own equity instruments are not recognised in the financial statements. Consideration received or paid in exchange for such instruments, including the coupons on preference shares contingently convertible into ordinary shares and the coupons associated with CCPP, is directly added to or deducted from equity. #### q) Equity-instrument-based employee #### remuneration Own equity instruments delivered to employees in consideration for their services, if the instruments are delivered once the specific period of service has ended, are recognised as an expense for services (with the corresponding increase in equity) as the services are rendered by employees during the service period. At the grant date the services received (and the related increase in equity) are measured at the fair value of the equity instruments granted. If the equity instruments granted are vested immediately,   Banco Santander recognises in full, at the grant date, the expense for the services received. When the requirements stipulated in the remuneration agreement include external market conditions (such as equity instruments reaching a certain quoted price), the amount ultimately to be recognised in equity will depend on the other conditions being met by the employees (normally length of service requirements), irrespective of whether the market conditions are satisfied. If the conditions of the agreement are met but the external market conditions are not satisfied, the amounts previously recognised in equity are not reversed, even if the employees do not exercise their right to receive the equity instruments. #### r) Recognition of income and expenses The most significant criteria used by Banco Santander to recognise its income and expenses are summarised as follows: i. Interest income, interest expenses and similar #### items Interest income, interest expenses and similar items are generally recognised on an accrual basis using the effective interest method. Dividends received from other companies are recognised as income when the Banco Santander right to receive them arises. ii. Commissions, fees and similar items Fee and commission income and expenses are recognised in the income statement using criteria that vary according to their nature. The main criteria are as follows: • Fee and commission income and expenses relating to financial assets and financial liabilities measured at fair value through profit or loss are recognised when paid. • Those arising from transactions or services that are performed over a period of time are recognised over the life of these transactions or services. • Those relating to services provided in a single act are recognised when the single act is carried out. 43 iii. Non-finance income and expenses They are recognised for accounting purposes when the good is delivered or the non-financial service is rendered. To determine the amount and timing of recognition, a five-step model is followed: identification of the contract with the customer, identification of the separate obligations of the contract, determination of the transaction price, distribution of the transaction price among the identified obligations and finally recording of income as the obligations are satisfied. iv. Deferred collections and payments These are recognised for accounting purposes at the amount resulting from discounting the expected cash flows at market rates. v. Loan arrangement fees Loan arrangement fees, mainly loan origination, application and information fees, are accrued and recognised in income over the term of the loan. #### s) Financial guarantees Financial guarantees are considered contracts that require the issuer to make specific payments to reimburse the creditor for the loss it incurs when a specific debtor defaults on its due date payment obligation in accordance with the original or modified conditions of debt instrument, regardless of its legal form, which may be, among others, a deposit, financial guarantee, insurance contract or credit derivative. Banco Santander initially recognises the financial guarantees provided on the liability side of the balance sheet at fair value, which is generally the present value of the fees, commissions and interest receivable from these contracts over the term thereof, and simultaneously the Bank recognises the amount of the fees, commissions and similar interest received at the inception of the transactions and a credit on the asset side of the balance sheet for the present value of the fees, commissions and interest outstanding. Financial guarantees, regardless of the guarantor, instrumentation or other circumstances, are reviewed periodically so as to determine the credit risk to which they are exposed and, if appropriate, to consider whether a provision is required. The credit risk is determined by application of criteria similar to those established for quantifying impairment losses on debt instruments carried at amortised cost (described in note 2.g above). The provisions made for these transactions are recognised under 'Provisions - Provisions for commitments and guarantees given in the consolidated balance sheet' (see note 23). These provisions are recognised and reversed with a charge or credit, respectively, to 'Provisions or reversal of provisions', net, in the income statement. #### t) Post-employment benefits Under the collective agreements currently in force and other arrangements, the Spanish banks included in the Group and certain other Spanish and foreign consolidated entities have undertaken to supplement the public social security system benefits accruing to certain employees, and to their beneficiary right holders, for retirement, permanent disability or death, and the post-employment welfare benefits. Banco Santander’s post-employment obligations to its employees are deemed to be defined contribution plans when the Bank makes pre-determined contributions (recognised under Personnel expenses in the income statement) to a separate entity and will have no legal or effective obligation to make further contributions if the separate entity cannot pay the employee benefits relating to the service rendered in the current and prior periods. Post-employment obligations that do not meet the aforementioned conditions are classified as defined benefit plans (see note 23). Defined contribution plans The contributions made in this connection in each year are recognised under 'Personnel expenses' in the income statement. The amounts not yet contributed at each year-end are recognised, at their present value, under 'Provisions - Provision for pensions' and similar obligations on the liability side of the balance sheet. Defined benefit plans Banco Santander recognises under 'Provisions - Provision for pensions and similar obligations on the liability side of the balance sheet' (or under 'Other assets' on the asset side, as appropriate) the present value of its defined benefit post-employment obligations, net of the fair value of the plan assets. Plan assets are defined as those that will be directly used to settle obligations and that meet the following conditions: • They are not owned by Banco Santander, but by a legally separate third party that is not a party related to the Bank. • They are only available to pay or fund post- employment benefits and they cannot be returned to the Bank unless the assets remaining in the plan are sufficient to meet all the benefit obligations of the plan and of the entity to current and former employees, or they are returned to reimburse employee benefits already paid by the Bank. 44 If Banco Santander can look to an insurer to pay part or all of the expenditure required to settle a defined benefit obligation, and it is practically certain that said insurer will reimburse some or all of the expenditure required to settle that obligation, but the insurance policy does not qualify as a plan asset, the  Bank recognises its right to reimbursement -which, in all other respects, is treated as a plan asset- under 'Insurance contracts linked to pensions' on the asset side of the  balance sheet. Banco Santander will recognise the following items in the income statement: • Current service cost, (the increase in the present value of the obligations resulting from employee service in the current period), is recognised under 'Staff costs'. • The past service cost, which arises from changes to existing post-employment benefits or from the introduction of new benefits and includes the cost of reductions, is recognised under 'Provisions or reversal of provisions'. • Any gain or loss arising from a liquidation of the plan is included in the 'Provisions or reversion of provisions'. • Net interest on the net defined benefit liability (asset), i.e. the change during the period in the net defined benefit liability (asset) that arises from the passage of time, is recognised under 'Interest expense' and similar charges ('Interest and similar income' if it constitutes income) in the income statement. The remeasurement of the net defined benefit liability (asset) is recognised in 'Other comprehensive income' under Items not reclassified to profit or loss and includes: • Actuarial gains and losses generated in the year, arising from the differences between the previous actuarial assumptions and what has actually occurred and from the effects of changes in actuarial assumptions. • The return on plan assets, excluding amounts included in net interest on the net defined benefit liability (asset). • Any change in the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability (asset). #### u) Other long-term employee benefits Other long-term employee benefits, defined as obligations to pre-retirees -taken to be those who have ceased to render services at the entity but who, without being legally retired, continue to have economic rights vis-à-vis the entity until they acquire the legal status of retiree-, long-service bonuses, obligations for death of spouse or disability before retirement that depend on the employee’s length of service at the entity and other similar items, are treated for accounting purposes, where applicable, as established above for defined benefit post-employment plans, except that actuarial gains and losses are recognised under 'Provisions or reversal of provisions', net, in the income statement (see note 23). #### v) Termination benefits Termination benefits are recognised when there is a detailed formal plan identifying the basic changes to be made, provided that implementation of the plan has begun, its main features have been publicly announced or objective facts concerning its implementation have been disclosed. #### w) Income tax The income tax expense is recognised in the income statement, except when they arise from a transaction whose results are recognised directly in equity. The current income tax expense is calculated as the sum of the current tax resulting from application of the appropriate tax rate to the taxable profit for the year (net of any deductions allowable for tax purposes), and of the changes in deferred tax assets and liabilities recognised in the income statement. 'Deferred tax assets' and liabilities include temporary differences, which are identified as the amounts expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities and their related tax bases, and tax loss and tax credit carryforwards. These amounts are measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled. 'Tax assets' include the amount of all tax assets, which are broken down into current -amounts of tax to be recovered within the next twelve months- and deferred - amounts of tax to be recovered in future years, including those arising from tax loss or tax credit carryforwards. 45 Tax liabilities' includes the amount of all tax liabilities (except provisions for taxes), which are broken down into current -the amount payable in respect of the income tax on the taxable profit for the year and other taxes in the next twelve months- and deferred -the amount of income tax payable in future years. Deferred tax liabilities are recognised in respect of taxable temporary differences associated with investments in subsidiaries, associates or joint ventures, except when the Bank is able to control the timing of the reversal of the temporary difference and, in addition, it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets are only recognised for temporary differences to the extent that it is considered probable that the Bank will have sufficient future taxable profits against which the deferred tax assets can be utilised, and the deferred tax assets do not arise from, in its initial recognition of (i)a business combination, (ii) an operation that does not affect either the tax result or the accounting result or (iii) on the date of the transaction, does not generate deductible and taxable temporary differences for the same amount (in which case assets and deferred tax liabilities). Other deferred tax assets (tax loss and tax credit carryforwards) are only recognised if it is considered probable that the Bank entities will have sufficient future taxable profits against which they can be utilised. Differences generated by the different accounting and tax treatment of any of the income and expenses recorded directly in equity to be paid or recovered in the future are accounted for as temporary differences. The deferred tax assets and liabilities are reassessed at the reporting date in order to ascertain whether any adjustments need to be made on the basis of the findings of the analyses performed. Regarding taxes on profits arising from the application of tax laws for the implementation of the Pillar Two model rules, including those related to national minimum complementary taxes, the Group applies the mandatory and temporary exception to the recognition of deferred tax assets and liabilities derived from said tax laws (see note 24.f). #### x) Residual maturity periods In note 49 it is provided on analysis of the maturities of the balances of certain items in the balance sheet. Grupo and Banco Santander have recorded as 'time liabilities' those recognised financial liabilities in which the counterparty may require payments. Likewise, when Grupo and Banco Santander have committed to having amounts available at different maturity periods, these amounts have been recorded in the first year in which they may be required. Additionally, for the financial guarantee contracts issued, the Group and the Bank have recorded the maximum amount of the financial guarantee issued in the first year in which the guarantee can be executed. #### y) Statement of recognised income and expenses This statement presents the income and expenses generated by the Bank as a result of its business activity in the year, and a distinction is made between the income and expenses recognised in the income statement for the year and the other income and expenses recognised directly in equity. Accordingly, this statement presents: a. The profit for the year. b. The net amount of the income and expenses recognised in 'Other comprehensive income' under items that will not be reclassified to profit or loss. c. The net amount of the income and expenses recognised in Other comprehensive income under items that may be reclassified subsequently to profit or loss. d. The income tax incurred in respect of the items indicated in b and c above, except for the valuation adjustments arising from investments in associates or joint ventures accounted for using the equity method, which are presented net. e. Total recognised income and expense, calculated as the sum of a) to d) above , presenting separately the amount attributable to the parent company and the amount relating to non-controlling interests. The statement presents the items separately by nature, grouping together items that, in accordance with the applicable accounting standards, will not be reclassified subsequently to profit and loss since the requirements established by the corresponding accounting standards are met. #### z) Statement of changes in total equity This statement presents all the changes in equity, including those arising from changes in accounting policies and from the correction of errors. Accordingly, this statement presents a reconciliation of the carrying amount at the beginning and end of the year of all the equity items, and the changes are grouped together on the basis of their nature into the following items: a. Adjustments due to changes in accounting policies and to errors: include the changes in equity arising as a result of the retrospective restatement of the balances in the financial statements, distinguishing between those resulting from changes in accounting policies and those relating to the correction of errors. 46 b. Income and expense recognised in the year: includes, in aggregate form, the total of the aforementioned items recognised in the statement of recognised 'Income and expense'. c. Other changes in equity: includes the remaining items recognised in equity, including, inter alia, increases and decreases in capital, distribution of profit, transactions involving own equity instruments, equity-instrument-based payments, transfers between equity items and any other increases or decreases in equity. #### aa) Statement of cash flows The following terms are used in the statements of cash flows with the meanings specified: • Cash flows: inflows and outflows of cash and cash equivalents, which are short-term, highly liquid investments that are subject to an insignificant risk of changes in value, irrespective of the portfolio in which they are classified. Banco Santander classifies as cash and cash equivalents the balances recognised under 'Cash, cash balances at central banks' and 'Other deposits on demand' in the balance sheet. • Operating activities: the principal revenue-producing activities of credit institutions and other activities that are not investing or financing activities. • Investing activities: the acquisition or disposal of long-term assets and other investments not included in cash and cash equivalents. • Financing activities: activities that result in changes in the size and composition of the equity and liabilities that are not operating activities. During 2025, Banco Santander received interest amounting to EUR 24,964 million and paid interest amount to EUR 19,244 million (EUR 27,005 and 20,122 million, respectively, in 2024). Also, the dividends received and paid by Banco Santander are detailed in notes 4 and 36. 3. Grupo Santander a) Banco Santander, S.A. and international Group #### structure The growth of Grupo Santander in the last decades has led Banco Santander to also act, in practice, as a holding entity of the shares of the various companies in its Group, and its results are becoming progressively less representative of the performance and earnings of the Group. Therefore, each year the bank determines the amount of the dividends to be distributed to its shareholders on the basis of the consolidated net profit, while maintaining the Group’s objectives of capitalisation and taking into account that the transactions of the Bank and of the rest of the Group are managed on a consolidated basis (notwithstanding the allocation to each company of the related net worth effect). At the international level, the various banks and other subsidiaries, joint ventures and associates of the Group are integrated in a corporate structure comprising various holding companies which are the ultimate shareholders of the banks and subsidiaries abroad. The purpose of this structure, all of which is controlled Banco Santander, is to optimise the international organisation from the strategic, economic, financial and tax standpoints, since it makes it possible to define the most appropriate units to be entrusted with acquiring, selling or holding stakes in other international entities, the most appropriate financing method for these transactions and the most appropriate means of remitting the profits obtained by the group’s various operating units to Spain. The Appendices provide relevant data on the consolidated group companies and on the companies accounted for using the equity method. #### b)  Acquisitions and disposals Following is a summary of the main acquisitions and disposals of ownership interests in the share capital of other entities and other significant corporate transactions performed in the last two years or pending to be completed: 47 i. Agreement for the sale of 49% of Santander Bank Polska S.A. and accelerated placement of ordinary shares On 5 May 2025, Banco Santander announced an agreement to sell approximately 49% of the share capital of Santander Bank Polska S.A. (Santander Polska) to Erste Group Bank AG at a price of 584 zlotys per share, as well as the 50% of Santander Towarzystwo Funduszy Inwestycyjnych S.A. (TFI, the asset management business in Poland) owned directly by Banco Santander, S.A., for a total amount of approximately EUR 7,000 million. Following the transaction and the accelerated placement of ordinary shares announced on 2 December 2025, of 3,576,626 ordinary shares of Santander Polska, representing approximately 3.5% of its share capital, for a total import of EUR 407 million, Santander will hold 9.7% of Santander Polska's share capital (58.7% as of 31 December 2025). The transaction was completed on 9 January 2026 (see Note 1.g. Introduction, basis of presentation of the consolidated annual accounts, and other information, subsequent events). As a result of the agreement, the Group has reclassified the assets of Santander Polska and TFI in the consolidated balance sheet as of 31 December 2025, to the heading 'Non-current assets held for sale', and their liabilities to the heading 'Liabilities associated with non- current assets held for sale'. Furthermore, the effect of these businesses on the profit and loss account for the 2025 financial year has been classified under the heading 'Profit/(loss) after tax from discontinued operations' (see Note 12), with the same classification being applied for comparative purposes in the profit and loss accounts for the 2024 and 2023 financial years. As part of this transaction, on 23 December 2025, Santander Consumer, S.A. acquired 60% of Santander Consumer Bank Polska, which was owned by Santander Polska, for PLN  3,105  million (EUR 726 million). This transaction had no significant impact on the Group's consolidated financial statements. ii. Agreement for the acquisition of TSB Banking #### Group plc On 1 July 2025, Banco Santander announced an agreement with Banco de Sabadell, S.A. for the acquisition of TSB Banking Group plc for approximately GBP 2,650 million (EUR 3,100 million) plus the results generated by this business between 31 March 2025, and the closing of the transaction. The completion of the transaction is subject to the usual conditions for this type of deal, including obtaining the relevant regulatory authorizations. iii. Agreement for the sale of the stake in Caceis On 19 December 2024, Grupo Santander signed an agreement with Crédit Agricole S.A. for the sale of its 30.5% stake in the share capital of CACEIS. As a result of the above, as of 31 December 2024, this participation was reclassified, at its carrying value, from the line item 'investments' to the line item 'Non-current assets held for sale' in the balance sheet (see Note 6). The transaction was formalized in 2025 after obtaining the relevant regulatory approvals, generating a profit before taxes of EUR 231 million registered in the line item 'Gains or losses on non-current assets held for sale not classified as discontinued operations' of the income statement. Following the completion of the planned transaction, Crédit Agricole S.A. holds the 100% of CACEIS’s share capital. The joint depositary, custody and related asset servicing services of Santander and CACEIS in Latin America is not included in the scope of the transaction and continues to be jointly controlled by Santander and CACEIS. iv.Accelerated placement of ordinary shares of #### Santander Bank Polska On 10 September 2024, Banco Santander, S.A. announced an accelerated placement of 5,320,000 ordinary shares of its subsidiary Santander Bank Polska S.A., representing approximately 5.2% of its share capital, at a price of PLN 463 (EUR 108 ) per ordinary share. The transaction was settled on September 13, with the total transaction amounting to PLN 2,463 million (EUR 575 million). Banco Santander will continue to hold a majority stake in Santander Bank Polska S.A. of 62.2% of the share capital (prior to this transaction, the percentage of participation was 67.4%). This sale has resulted in an increase in reserves and valuation adjustments of EUR 158 million and EUR 57 million, respectively, and an increase in minority equity of EUR 360 million. v.Tender offers for shares of Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México On 21 October 2022, Banco Santander, S.A. ('Banco Santander') announced that it intends to make concurrent cash tender offers to acquire all of the shares of Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México ('Santander Mexico') in Mexico (Shares) and United States (American Depositary Shares ('ADSs')) which were not owned by Grupo Santander, which amount to approximately  3.76% of Santander Mexico’s share capital. 48 The offers were launched on 7 February 2023 and were originally scheduled to close on 8 March 2023. On 1 March 2023, Banco Santander announced its decision to extend the expiration date of the offers so that they could be concluded on 10 April 2023. Finally, after the offers' closing, 3.6% of the capital accepted the offer, which raised the Group's stake in Santander México from 96.2% to 99.8%will be settled on 13 March 2023. Shareholders who participated in the offerings received 24.52 Mexican pesos (approximately EUR 1.20 ) per Share and USD 6.6876 in cash for each ADS (i.e., the equivalent in United States dollars of122.6 Mexican pesos in cash for each ADS at the US dollar/Mexican peso exchange rate on the expiration date of 10 April 2023),which corresponded to the book value of the Santander México share according to the quarterly report of Santander México corresponding to the fourth quarter of the year 2022 in accordance with applicable legislation, with a total disbursement by Banco Santander of approximately EUR 300 million. The operation led to an increase of EUR 13 million in Reserves and a decrease of EUR 313 million in minority interests of the consolidated balance sheet. Once the offers were concluded and settled, Banco Santander proceeded to: (i) withdraw the ADSs from the listing on the New York Stock Exchange ('NYSE') and the Shares from the registry before the Securities and Exchange Commission ('SEC') in the United States and; (ii) cancel the registration of the Shares in the National Securities Registry of the National Banking and Securities Commission ('CNBV') and withdraw the listing of the Shares in the Mexican Stock Exchange, S.A.B. de C.V. ('BMV'). Said cancellation was approved by the extraordinary general shareholders' meeting of Santander México held on 30 November 2022, with the favourable vote of the holders of the shares that represent more than 95% of the shares of Santander Mexico, as required by the Mexican Securities Market Law. Pursuant to Mexican law, on 12 May 2023, Banco Santander and Santander México established a trust (the 'Repurchase Trust'), to which the holders of the Shares that remain outstanding after the conclusion of the offers, to sell said Shares to the repurchase trust, at the same cash price that would have been paid to them in the Mexican offer with respect to the same. At the end of the year, said trust was liquidated and the Group's effective participation amounts to 99.98%. #### c) Offshore entities Spanish regulation According to current Spanish regulation (Law 11/2021, of 9 July; Royal Decree 1080/1991, of 5 July; and Order HFP/115/2023, of 9 February), at year-end 2025 Grupo Santander has three branches in the non-cooperative jurisdictions of Jersey, the Isle of Man and the Cayman Islands (offshore entities). The Group also has a subsidiary in Guernsey, which is in the process of being wound up and is tax resident in the United Kingdom, and is therefore subject to its tax regime. i. #### Offshore branches As previously mentioned, Grupo Santander has three offshore branches in the non-cooperative jurisdictions of the Cayman Islands, the Isle of Man and Jersey. They report to, and consolidate balance sheets and income statements with, their respective foreign headquarters. They are taxed either with their headquarters (the Cayman Islands branch in Brazil) or in the territories they are located (Jersey and the Isle of Man, pertain to the UK) These three offshore branches have a total of 147 employees as of December 2025. ii. Subsidiaries in non-cooperative jurisdictions that are tax resident in the United Kingdom (UK) Grupo Santander also has a subsidiary incorporated in the non-cooperative jurisdiction of Guernsey, which is not deemed an offshore entity because it operated exclusively from the UK and is tax resident there, and is therefore subject to UK tax law. This subsidiary is in the process of being liquidated as of December 31, 2025.Additionally, during 2025 a subsidiary incorporated in Bermuda  and tax resident in the United Kingdom, was liquidated. iii. Other offshore holdings From Brazil, Grupo Santander manages Santander Brazil Global Investment Fund SPC, a segregated portfolio company located in the Cayman Islands. The Group also holds minority, non-controlling financial interests in entities located in non-cooperative jurisdictions, including, among others, Klar Holdings Limited in the Cayman Islands. 49 The European Union (EU) Santander has no presence in any of the 11 jurisdictions included on the EU Council’s blacklist of non-cooperative jurisdictions for tax purposes as of 31 December 2025. Additionally, the EU grey list comprises another 11 jurisdictions which have sufficiently committed to fully adapting their legislation to international tax standards, subject to monitoring by the EU. Within these grey-list jurisdictions, Santander operates only in Morocco through one subsidiary and holds a minority interest in a financial institution tax resident in that jurisdiction. Organization for Economic Cooperation and Development (OECD) Grupo Santander has no presence in any jurisdictions non-compliant with both OECD standards on transparency and exchange of information for tax purposes (the automatic exchange of information AEOI standard and the exchange of information on request EOIR standard), according to the last annual reports of the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes, released on 2 December 2025. However, Vietnam —a jurisdiction where Santander has a subsidiary— does not comply with the EOIR standard. Meanwhile, The Bahamas and Chile —jurisdictions where Santander is also present—, although they have complete legal and regulatory frameworks in place for the implementation of the AEOI standard, they still need to improve the effectiveness of this standard. Santander presence in offshore territories at the end of 2025 is as follows:Group presence in non-cooperative jurisdictions | | | | | --- | --- | --- | | | | | | Regulatory framework | Group presence in non- cooperative jurisdictions | | | Subsidiaries | Branches | | Spanish legislation a | — | 3 b | | Council of the EU blacklist | — | — | | OECD c | — | — | | 2025 | — | 3 | | 2024 c | — | 3 | a. Additionally, there is one subsidiary constituted in Guernsey (in the process of winding up), but resident for tax purposes in the UK. b.  The Group has three branches in Jersey, the Isle of Man and the Cayman Islands. These jurisdictions are not included in the European Union’s October 2025 blacklist and fully comply with both OECD international standards on transparency and exchange of information for tax purposes (AEOI and EOIR). c.    Jurisdictions non-compliant with both OECD standards (AEOI and EOIR). Grupo Santander has the right mechanisms (risk management, supervision, verification and review plans, and regular reporting) to prevent reputational, tax and legal risks in entities resident in non-cooperative jurisdictions. Grupo Santander also maintains its policy of limiting and reducing its presence in non-cooperative jurisdictions when possible. PwC member firms audited the financial statements of Grupo Santander’s offshore entities in 2025 and 2024 . d) Consolidated balance sheet, income statement, statement of recognized income and expenses, statement of changes in total equity and cash-flow statement Presented below are the Group´s consolidated balance sheets as of December 31, 2025 and 2024, and the consolidated income statements, statements of recognized income and expense, statements of changes in total equity and statements of cash flows for the years ended on those dates. 50 | | | | | | | --- | --- | --- | --- | --- | | | | | | | | CONSOLIDATED BALANCE SHEETS AS OF 31 DECEMBER 2025 AND 2024 | | | | | | EUR million | | | | | | | | | | --- | --- | --- | | | | | | ASSETS | 2025 | 2024 A | | CASH, CASH BALANCES AT CENTRAL BANKS AND OTHER DEPOSITS ON DEMAND | 152,281 | 192,208 | | FINANCIAL ASSETS HELD FOR TRADING | 252,318 | 230,253 | | Derivatives | 58,355 | 64,100 | | Equity instruments | 22,030 | 16,636 | | Debt securities | 98,568 | 82,646 | | Loans and advances | 73,365 | 66,871 | | Central banks | 14,632 | 12,966 | | Credit institutions | 25,967 | 27,314 | | Customers | 32,766 | 26,591 | | NON-TRADING FINANCIAL ASSETS MANDATORILY AT FAIR VALUE THROUGH PROFIT OR LOSS | 7,761 | 6,130 | | Equity instruments | 5,815 | 4,641 | | Debt securities | 245 | 447 | | Loans and advances | 1,701 | 1,042 | | Central banks | — | — | | Credit institutions | — | — | | Customers | 1,701 | 1,042 | | FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | 8,046 | 7,915 | | Debt securities | 2,894 | 2,897 | | Loans and advances | 5,152 | 5,018 | | Central banks | — | — | | Credit institutions | 413 | 408 | | Customers | 4,739 | 4,610 | | FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME | 74,612 | 89,898 | | Equity instruments | 2,281 | 2,193 | | Debt securities | 58,305 | 76,558 | | Loans and advances | 14,026 | 11,147 | | Central banks | — | — | | Credit institutions | 1,120 | 363 | | Customers | 12,906 | 10,784 | | FINANCIAL ASSETS AT AMORTIZED COST | 1,202,689 | 1,203,707 | | Debt securities | 140,014 | 120,949 | | Loans and advances | 1,062,675 | 1,082,758 | | Central banks | 15,986 | 16,179 | | Credit institutions | 61,513 | 55,537 | | Customers | 985,176 | 1,011,042 | | HEDGING DERIVATIVES | 3,931 | 5,672 | | CHANGES IN THE FAIR VALUE OF HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | 50 | (704) | | INVESTMENTS | 7,052 | 7,277 | | Joint venture entities | 1,956 | 2,061 | | Associated entities | 5,096 | 5,216 | | ASSETS UNDER INSURANCE OR REINSURANCE CONTRACTS | 223 | 222 | | TANGIBLE ASSETS | 27,438 | 32,087 | | Property, plant and equipment | 26,416 | 31,212 | | For own-use | 11,663 | 12,636 | 51 | | | | | --- | --- | --- | | | | | | ASSETS | 2025 | 2024 A | | Leased out under an operating lease | 14,753 | 18,576 | | Investment properties | 1,022 | 875 | | Of which leased out under an operating lease | 860 | 749 | | INTANGIBLE ASSETS | 17,308 | 19,259 | | Goodwill | 11,958 | 13,438 | | Other intangible assets | 5,350 | 5,821 | | TAX ASSETS | 30,076 | 30,596 | | Current tax assets | 11,132 | 11,426 | | Deferred tax assets | 18,944 | 19,170 | | OTHER ASSETS | 8,719 | 8,559 | | Insurance contracts linked to pensions | 67 | 81 | | Inventories | 7 | 6 | | Other | 8,645 | 8,472 | | NON-CURRENT ASSETS HELD FOR SALE | 75,011 | 4,002 | | TOTAL ASSETS | 1,867,515 | 1,837,081 | A. Presented for comparison purposes only. 52 | | | | | | | --- | --- | --- | --- | --- | | | | | | | | CONSOLIDATED BALANCE SHEETS AS OF 31 DECEMBER 2025 AND 2024 | | | | | | EUR million | | | | | | | | | | --- | --- | --- | | | | | | LIABILITIES | 2025 | 2024 A | | FINANCIAL LIABILITIES HELD FOR TRADING | 171,546 | 152,151 | | Derivatives | 51,968 | 57,753 | | Short positions | 44,015 | 35,830 | | Deposits | 75,563 | 58,568 | | Central banks | 12,385 | 13,300 | | Credit institutions | 27,058 | 26,284 | | Customers | 36,120 | 18,984 | | Marketable debt securities | — | — | | Other financial liabilities | — | — | | FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | 42,148 | 36,360 | | Deposits | 30,440 | 28,806 | | Central banks | 3,086 | 1,774 | | Credit institutions | 1,424 | 1,625 | | Customers | 25,930 | 25,407 | | Marketable debt securities | 11,686 | 7,554 | | Other financial liabilities | 22 | — | | Memorandum items: subordinated liabilities | — | — | | FINANCIAL LIABILITIES AT AMORTIZED COST | 1,421,184 | 1,484,322 | | Deposits | 1,072,384 | 1,126,439 | | Central banks | 18,542 | 24,882 | | Credit institutions | 74,692 | 90,012 | | Customers | 979,150 | 1,011,545 | | Marketable debt securities | 312,704 | 317,967 | | Other financial liabilities | 36,096 | 39,916 | | Memorandum items: subordinated liabilities | 29,287 | 35,813 | | HEDGING DERIVATIVES | 4,248 | 4,752 | | CHANGES IN THE FAIR VALUE OF HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | 49 | (9) | | LIABILITIES UNDER INSURANCE CONTRACTS | 18,737 | 17,829 | | PROVISIONS | 8,355 | 8,407 | | Pensions and other post-retirement obligations | 1,656 | 1,731 | | Other long term employee benefits | 993 | 915 | | Taxes and other legal contingencies | 2,989 | 2,717 | | Contingent liabilities and commitments | 713 | 710 | | Other provisions | 2,004 | 2,334 | | TAX LIABILITIES | 9,568 | 9,598 | | Current tax liabilities | 3,664 | 3,322 | | Deferred tax liabilities | 5,904 | 6,276 | | OTHER LIABILITIES | 15,937 | 16,344 | | LIABILITIES ASSOCIATED WITH NON-CURRENT ASSETS HELD FOR SALE | 62,995 | — | | TOTAL LIABILITIES | 1,754,767 | 1,729,754 | A. Presented for comparison purposes only. 53 | | | | | | | --- | --- | --- | --- | --- | | | | | | | | CONSOLIDATED BALANCE SHEETS AS OF 31 DECEMBER 2025 AND 2024 | | | | | | EUR million | | | | | | | | | | --- | --- | --- | | | | | | EQUITY | 2025 | 2024 A | | SHAREHOLDERS´ EQUITY | 141,144 | 135,196 | | CAPITAL | 7,345 | 7,576 | | Called up paid capital | 7,345 | 7,576 | | Unpaid capital which has been called up | — | — | | SHARE PREMIUM | 36,792 | 40,079 | | EQUITY INSTRUMENTS ISSUED OTHER THAN CAPITAL | — | — | | Equity component of the compound financial instrument | — | — | | Other equity instruments issued | — | — | | OTHER EQUITY | 273 | 217 | | ACCUMULATED RETAINED EARNINGS | 91,959 | 82,326 | | REVALUATION RESERVES | — | — | | OTHER RESERVES | (7,532) | (5,976) | | Reserves or accumulated losses in joint venture investments | 1,643 | 1,831 | | Others | (9,175) | (7,807) | | (-) OWN SHARES | (96) | (68) | | PROFIT OR LOSS ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT | 14,101 | 12,574 | | (-) INTERIM DIVIDENDS | (1,698) | (1,532) | | OTHER COMPREHENSIVE INCOME OR LOSS | (37,974) | (36,595) | | Items that will not be reclassified to profit or loss | (4,121) | (4,757) | | Items that may be reclassified to profit or loss | (33,853) | (31,838) | | NON-CONTROLLING INTEREST | 9,578 | 8,726 | | Other comprehensive income or loss | (1,947) | (2,020) | | Other items | 11,525 | 10,746 | | TOTAL EQUITY | 112,748 | 107,327 | | TOTAL LIABILITIES AND EQUITY | 1,867,515 | 1,837,081 | | MEMORANDUM ITEMS: OFF BALANCE SHEET AMOUNTS | | | | Loan commitments granted | 321,234 | 302,861 | | Financial guarantees granted | 17,449 | 16,901 | | Other commitments granted | 148,118 | 134,493 | A. Presented for comparison purposes only. 54 | | | | | | | --- | --- | --- | --- | --- | | | | | | | | CONSOLIDATED INCOME STATEMENTS FOR THE YEARS ENDED 31 DECEMBER 2025 AND 2024 | | | | | | EUR million | | | | | | | | | | --- | --- | --- | | | | | | | (Debit) Credit | | | | 2025 | 2024 A | | Interest income | 101,710 | 109,012 | | Financial assets at fair value through other comprehensive income | 5,713 | 6,931 | | Financial assets at amortized cost | 76,248 | 80,992 | | Other interest income | 19,749 | 21,089 | | Interest expense | (59,362) | (65,225) | | Interest income/(charges) | 42,348 | 43,787 | | Dividend income | 715 | 710 | | Income from companies accounted for using the equity method | 665 | 687 | | Commission income | 17,387 | 16,834 | | Commission expense | (4,411) | (4,458) | | Gain or losses on financial assets and liabilities not measured at fair value through profit or loss, net | 127 | (117) | | Financial assets at amortized cost | (89) | (190) | | Other financial assets and liabilities | 216 | 73 | | Gain or losses on financial assets and liabilities held for trading, net | 1,017 | 1,344 | | Reclassification of financial assets at fair value through other comprehensive income | — | — | | Reclassification of financial assets at amortized cost | — | — | | Other gains (losses) | 1,017 | 1,344 | | Gains or losses on non-trading financial assets and liabilities mandatorily at fair value through profit or loss | 1,106 | 495 | | Reclassification of financial assets at fair value through other comprehensive income | — | — | | Reclassification of financial assets at amortized cost | — | — | | Other gains (losses) | 1,106 | 495 | | Gain or losses on financial assets and liabilities measured at fair value through profit or loss, net | (307) | 691 | | Gain or losses from hedge accounting, net | 12 | 14 | | Exchange differences, net | 407 | (216) | | Other operating income | 1,583 | 846 | | Other operating expenses | (2,070) | (2,258) | | Income from insurance and reinsurance contracts | 476 | 470 | | Expenses from insurance and reinsurance contracts | (385) | (449) | | Total income | 58,670 | 58,380 | | Administrative expenses | (21,533) | (21,970) | | Staff costs | (13,633) | (13,825) | | Other general administrative expenses | (7,900) | (8,145) | | Depreciation and amortisation cost | (3,178) | (3,179) | | Provisions or reversal of provisions, net | (2,729) | (3,465) | | Impairment or reversal of impairment at financial assets not measured at fair value through  profit or loss and net gains and losses from changes | (12,546) | (12,136) | | Financial assets at fair value through other comprehensive income | (29) | 1 | | Financial assets at amortized cost | (12,517) | (12,137) | | Impairment or reversal of impairment of investments in subsidiaries, joint ventures and associates, net | — | — | | Impairment or reversal of impairment on non-financial assets, net | (251) | (624) | | Tangible assets | (129) | (382) | | Intangible assets | (112) | (231) | | Others | (10) | (11) | | Gain or losses on non-financial assets and investments, net | — | 368 | | Negative goodwill recognized in results | 22 | — | 55 | | | | | --- | --- | --- | | | | | | | (Debit) Credit | | | | 2025 | 2024 A | | Gains or losses on non-current assets held for sale not classified as discontinued operations | 226 | (27) | | Operating profit/(loss) before tax | 18,681 | 17,347 | | Tax expense or income from continuing operations | (4,723) | (4,844) | | Profit/(loss) from continuing operations | 13,958 | 12,503 | | Profit/(loss) after tax from discontinued operations | 1,542 | 1,241 | | Profit/(loss) for the year | 15,500 | 13,744 | | Profit/(loss) attributable to non-controlling interests | 1,399 | 1,170 | | Profit/(loss) attributable to the parent | 14,101 | 12,574 | | Earnings/(losses) per share | | | | Basic | 0.905 | 0.771 | | Diluted | 0.900 | 0.768 | A. Presented for comparison purposes only. 56 | | | | | | | --- | --- | --- | --- | --- | | | | | | | | CONSOLIDATED STATEMENTS OF RECOGNIZED INCOME AND EXPENSE FOR THE YEARS ENDED 31 DECEMBER 2025 AND 2024 | | | | | | EUR million | | | | | | | | | | --- | --- | --- | | | | | | | 2025 | 2024 A | | CONSOLIDATED PROFIT/(LOSS) FOR THE YEAR | 15,500 | 13,744 | | OTHER RECOGNISED INCOME AND EXPENSE | (1,858) | (2,339) | | Items that will not be reclassified to profit or loss | 100 | 219 | | Actuarial gains and losses on defined benefit pension plans | (73) | (584) | | Non-current assets held for sale | 10 | — | | Other recognised income and expense of investments in subsidiaries, joint ventures and associates | 1 | (3) | | Changes in the fair value of equity instruments measured at fair value through other comprehensive income | 245 | 447 | | Gains or losses resulting from the accounting for hedges of equity instruments measured at fair value through other comprehensive income, net | — | — | | Changes in the fair value of equity instruments measured at fair value through other comprehensive income (hedged item) | (76) | 20 | | Changes in the fair value of equity instruments measured at fair value through other comprehensive income (hedging instrument) | 76 | (20) | | Changes in the fair value of financial liabilities at fair value through profit or loss attributable to changes in credit risk | (160) | 277 | | Income tax relating to items that will not be reclassified | 77 | 82 | | Items that may be reclassified to profit or loss | (1,958) | (2,558) | | Hedges of net investments in foreign operations (effective portion) | 195 | 420 | | Revaluation gains (losses) | 195 | 420 | | Amounts transferred to income statement | — | — | | Other reclassifications | — | — | | Exchanges differences | (3,399) | (3,047) | | Revaluation gains (losses) | (3,399) | (3,047) | | Amounts transferred to income statement | — | — | | Other reclassifications | — | — | | Cash flow hedges (effective portion) | 867 | 558 | | Revaluation gains (losses) | 158 | (698) | | Amounts transferred to income statement | 709 | 1,256 | | Transferred to initial carrying amount of hedged items | — | — | | Other reclassifications | — | — | | Hedging instruments (items not designated) | (14) | — | | Revaluation gains (losses) | (1) | — | | Amounts transferred to income statement | (13) | — | | Other reclassifications | — | — | | Debt instruments at fair value with changes in other comprehensive income | 613 | (493) | | Revaluation gains (losses) | 715 | (447) | | Amounts transferred to income statement | (102) | (46) | | Other reclassifications | — | — | | Non-current assets held for sale | 274 | — | | Revaluation gains (losses) | 267 | — | | Amounts transferred to income statement | 7 | — | | Other reclassifications | — | — | | Share of other recognised income and expense of investments | 20 | (108) | | Income tax relating to items that may be reclassified to profit or loss | (514) | 112 | | Total recognised income and expenses for the year | 13,642 | 11,405 | | Attributable to non-controlling interests | 1,452 | 709 | | Attributable to the parent | 12,190 | 10,696 | A. Presented for comparison purposes only. 57 | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | CONSOLIDATED STATEMENTS OF CHANGES IN TOTAL EQUITY FOR THE YEARS ENDED 31 DECEMBER 2025 AND 2024 | | | | | | | EUR million | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Non-controlling interest | | | | | Capital | Share premium | Equity instruments issued (not capital) | Other equity instruments | Accumulated retained earnings | Revaluation reserves | Other reserves | (-) Own shares | Profit attributable to shareholders of the parent | (-) Interim dividends | Other comprehensive income | Other comprehensive income | Other items | Total | | Balance at 31 December 2024A | 7,576 | 40,079 | — | 217 | 82,326 | — | (5,976) | (68) | 12,574 | (1,532) | (36,595) | (2,020) | 10,746 | 107,327 | | Adjustments due to errors | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | Adjustments due to changes in accounting policies | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | Opening balance at 1 January 2024 A | 7,576 | 40,079 | — | 217 | 82,326 | — | (5,976) | (68) | 12,574 | (1,532) | (36,595) | (2,020) | 10,746 | 107,327 | | Total recognised income and expense | — | — | — | — | — | — | — | — | 14,101 | — | (1,911) | 53 | 1,399 | 13,642 | | Other changes in equity | (231) | (3,287) | — | 56 | 9,633 | — | (1,556) | (28) | (12,574) | (166) | 532 | 20 | (620) | (8,221) | | Issuance of ordinary shares | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | Issuance of preferred shares | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | Issuance of other financial instruments | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | Maturity of other financial instruments | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | Conversion of financial liabilities into equity | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | Capital reduction | (231) | (3,287) | — | — | — | — | 231 | 3,287 | — | — | — | — | (8) | (8) | | Dividends | — | — | — | — | (1,643) | — | — | — | — | (1,698) | — | — | (896) | (4,237) | | Purchase of equity instruments | — | — | — | — | — | — | — | (4,081) | — | — | — | — | — | (4,081) | | Disposal of equity instruments | — | — | — | — | — | — | 34 | 766 | — | — | — | — | — | 800 | | Transfer from equity to liabilities | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | Transfer from liabilities to equity | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | Transfers between equity items | — | — | — | — | 11,276 | — | (766) | — | (12,574) | 1,532 | 532 | 20 | (20) | — | | Increases (decreases) due to business combinations | — | — | — | — | — | — | — | — | — | — | — | — | (5) | (5) | | Share-based payment | — | — | — | (67) | — | — | — | — | — | — | — | — | — | (67) | | Others increases or (-) decreases in equity | — | — | — | 123 | — | — | (1,055) | — | — | — | — | — | 309 | (623) | | Balance at 31 December 2025 | 7,345 | 36,792 | — | 273 | 91,959 | — | (7,532) | (96) | 14,101 | (1,698) | (37,974) | (1,947) | 11,525 | 112,748 | A. Presented for comparison purpose only . 58 | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | CONSOLIDATED STATEMENTS OF CHANGES IN TOTAL EQUITY FOR THE YEARS ENDED 31 DECEMBER 2024 AND 2023 | | | | | | | EUR million | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Non-controlling interest | | | | | Capital | Share premium | Equity instruments issued (not capital) | Other equity instruments | Accumulated retained earnings | Revaluation reserves | Other reserves | (-) Own shares | Profit attributable to shareholders of the parent | (-) Interim dividends | Other comprehensive income | Other comprehensi ve income | Other items | Total | | Balance at 31 December 2023A | 8,092 | 44,373 | 720 | 195 | 74,114 | — | (5,751) | (1,078) | 11,076 | (1,298) | (35,020) | (1,559) | 10,377 | 104,241 | | Adjustments due to errors | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | Adjustments due to changes in accounting policies | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | Opening balance at 1 January 2023A | 8,092 | 44,373 | 720 | 195 | 74,114 | — | (5,751) | (1,078) | 11,076 | (1,298) | (35,020) | (1,559) | 10,377 | 104,241 | | Total recognised income and expense | — | — | — | — | — | — | — | — | 12,574 | — | (1,878) | (461) | 1,170 | 11,405 | | Other changes in equity | (516) | (4,294) | (720) | 22 | 8,212 | — | (225) | 1,010 | (11,076) | (234) | 303 | — | (801) | (8,319) | | Issuance of ordinary shares | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | Issuance of preferred shares | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | Issuance of other financial instruments | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | Maturity of other financial instruments | — | — | (751) | — | — | — | — | — | — | — | — | — | (590) | (1,341) | | Conversion of financial liabilities into equity | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | Capital reduction | (516) | (4,294) | — | — | — | — | 516 | 4,294 | — | — | — | — | (93) | (93) | | Dividends | — | — | — | — | (1,485) | — | — | — | — | (1,532) | — | — | (660) | (3,677) | | Purchase of equity instruments | — | — | — | — | — | — | — | (4,038) | — | — | — | — | — | (4,038) | | Disposal of equity instruments | — | — | — | — | — | — | 8 | 754 | — | — | — | — | — | 762 | | Transfer from equity to liabilities | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | Transfer from liabilities to equity | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | Transfers between equity items | — | — | — | — | 9,697 | — | (215) | — | (11,076) | 1,298 | 303 | — | (7) | — | | Increases (decreases) due to business combinations | — | — | — | — | — | — | — | — | — | — | — | — | (8) | (8) | | Share-based payment | — | — | — | (62) | — | — | — | — | — | — | — | — | — | (62) | | Others increases or (-) decreases in equity | — | — | 31 | 84 | — | — | (534) | — | — | — | — | — | 557 | 138 | | Balance at 31 December 2024A | 7,576 | 40,079 | — | 217 | 82,326 | — | (5,976) | (68) | 12,574 | (1,532) | (36,595) | (2,020) | 10,746 | 107,327 | A. Presented for comparison purposes only . 59 | | | | | | | --- | --- | --- | --- | --- | | | | | | | | CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED 2025 AND 2024 | | | | | | EUR million | | | | | | | | | | --- | --- | --- | | | | | | | 2025 | 2024 A | | A. CASH FLOWS FROM OPERATING ACTIVITIES | (14,835) | (24,155) | | Profit or loss for the year | 15,500 | 13,744 | | Adjustments made to obtain the cash flows from operating activities | 31,347 | 28,361 | | Depreciation and amortisation cost | 3,178 | 3,179 | | Other adjustments | 28,169 | 25,182 | | Net increase/(decrease) in operating assets | 119,257 | 117,996 | | Financial assets held-for-trading | 25,776 | 62,460 | | Non-trading financial assets mandatorily at fair value through profit or loss | 1,867 | 31 | | Financial assets at fair value through profit or loss | 146 | (1,850) | | Financial assets at fair value through other comprehensive income | (6,733) | 10,225 | | Financial assets at amortized cost | 97,964 | 45,995 | | Other operating assets | 237 | 1,135 | | Net increase/(decrease) in operating liabilities | 62,529 | 57,616 | | Financial liabilities held-for-trading | 20,654 | 34,256 | | Financial liabilities designated at fair value through profit or loss | 5,858 | (3,854) | | Financial liabilities at amortized cost | 35,719 | 34,164 | | Other operating liabilities | 298 | (6,950) | | Income tax recovered/(paid) | (4,954) | (5,880) | | B. CASH FLOWS FROM INVESTING ACTIVITIES | 534 | (3,712) | | Payments | 7,925 | 11,355 | | Tangible assets | 5,854 | 8,494 | | Intangible assets | 1,805 | 2,104 | | Investments | 79 | 686 | | Subsidiaries and other business units | 187 | 71 | | Non-current assets held for sale and associated liabilities | — | — | | Other payments related to investing activities | — | — | | Proceeds | 8,459 | 7,643 | | Tangible assets | 5,206 | 5,966 | | Intangible assets | — | — | | Investments | 749 | 681 | | Subsidiaries and other business units | 54 | 8 | | Non-current assets held for sale and associated liabilities | 2,450 | 988 | | Other proceeds related to investing activities | — | — | | C. CASH FLOW FROM FINANCING ACTIVITIES | (14,203) | (5,510) | | Payments | 17,743 | 14,045 | | Dividends | 3,341 | 3,017 | | Subordinated liabilities | 8,822 | 4,096 | | Redemption of own equity instruments | — | 751 | | Acquisition of own equity instruments | 4,081 | 4,038 | | Other payments related to financing activities | 1,499 | 2,143 | | Proceeds | 3,540 | 8,535 | | Subordinated liabilities | 2,287 | 7,001 | | Issuance of own equity instruments | — | — | | Disposal of own equity instruments | 815 | 765 | | Other proceeds related to financing activities | 438 | 769 | | D. EFFECT OF FOREIGN EXCHANGE RATE DIFFERENCES | (8,908) | 5,243 | | E. NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | (37,412) | (28,134) | 60 | | | | | --- | --- | --- | | | | | | | 2025 | 2024 A | | F. CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR | 192,208 | 220,342 | | G. CASH AND CASH EQUIVALENTS AT END OF THE YEAR | 154,796 | 192,208 | | COMPONENTS OF CASH AND CASH EQUIVALENTS AT END OF THE YEAR | | | | Cash | 7,357 | 9,253 | | Cash equivalents at central banks | 135,330 | 170,914 | | Other financial assets | 9,594 | 12,041 | | Less, bank overdrafts refundable on demand | — | — | | TOTAL CASH AND CASH EQUIVALENTS AT END OF THE YEAR | 152,281 | 192,208 | | In which, restricted cash | — | — | | TOTAL CASH AND CASH EQUIVALENTS AT END OF PERIOD ASSOCIATED WITH NON- CURRENT ASSETS HELD FOR SALE | 2,515 | — | A. Presented for comparison purposes only . 61 4. Distribution of Banco #### Santander's profit, shareholder remuneration scheme and #### earnings per share a) Distribution of Banco Santander’s profit and #### shareholder remuneration scheme The distribution of the Bank's current annual results that the board of directors will propose for approval by the shareholders at the annual general meeting is as follows: | | | | --- | --- | | | | | EUR million | | | To dividends | 3,520 | | Dividend paid at 31 December A | 1,699 | | Complementary dividend B | 1,821 | | To voluntary reserves C | 7,593 | | Net profit for the year | 11,113 | A. Total amount paid as interim dividend, at the rate of EUR 11.5 fixed cents per eligible share (recorded in 'Shareholders' equity - Interim dividends'). B. Fixed complementary dividend of EUR 12.5 gross cents per eligible share, payable in cash as from 5 May 2026. The total amount has been estimated on the assumption that, as a result of the partial implementation of the buyback program announced on February 3, 2026, the number of the Bank's outstanding shares eligible for the dividend will be 14,568,470,446 and that, as envisaged, the capital increase submitted to the 2026 general meeting under item 6.C of the agenda will not be executed before 5 May 2026. Therefore, the total amount of the complementary dividend may be lower if more shares than initially envisaged are acquired under the buy-back programme, or higher if fewer shares are acquired under the buy-back programme or if the capital increase submitted to this general meeting under item 6.C of the agenda is executed before 5 May 2026. C. Estimated amount corresponding to a complementary dividend of EUR 1,821,058,805.75. To be increased or reduced by the same amount by which the total amount of the final dividend is lower or higher, respectively, than its estimated amount. The transcribed proposal comprises the part of the 2025 shareholder remuneration policy that is implemented through cash dividends (the interim dividend paid in November 2025 of EUR 11.5 cents per share with dividend entitlement, approved by the board of directors on September 30, 2025, and the complementary dividend expected to be paid as of 5 May 2026, of EUR 12.5 cents per share with the dividend entitlement, proposed by the board of directors on 24 February 2026, and therefore subject to approval by the general meeting). The remuneration policy also provides for shareholder remuneration through the implementation of share buyback programmes, to which an amount equivalent to 25% of the Group’s underlying profit will be allocated. The first programme charged to 2025 results, amounting to approximately amount of EUR 1,700  million, was completed between August 2025 and December 2025. In addition, in 2025 Banco Santander announced its objective of allocating at least EUR 10,000 million to share buybacks in respect of 2025 and 2026 results and expected excess capital. As part of this objective, on 4 February 2026 a second buyback programme was launched for a maximum total amount of EUR 5,030 million, of which EUR 1,830 million corresponds to an amount equivalent to approximately 25% of the Group’s underlying profit in the second half of 2025, and the remaining EUR 3,200 million corresponds to approximately 50% of the capital released following completion of the sale of the 49% stake in Santander Bank Polska. A capital reduction resolution is also being submitted to the general meeting to enable the cancellation of the treasury shares acquired under this second buyback programme. The accounting statement, prepared by the Bank pursuant to legal requirements, evidencing the existence of sufficient liquidity for the payment of the interim dividend on the date and for the amount mentioned above, was as follows: | | | | --- | --- | | | | | EUR million | | | | 31 August 2025 | | Profit before taxes | 6,193 | | Tax expense | 635 | | Dividends paid in cash | — | | Distributable maximum amount | 5,558 | | Available liquidity | 96,923 | 62 Finally, and although it does not form part of the remuneration charged to the 2025 financial year, it is hereby stated that, in execution of the resolution of the general meeting held on 4 April 2025, on 2 May 2025 the Bank paid a final cash dividend of EUR 11 cents per share charged to 2024 results.  Lastly, also charged to 2024 results, the Bank implemented two share buyback programmes. The first of these programmes, for a maximum amount of EUR 1,525 million, was completed in December 2024, and the second, for a maximum amount of EUR 1,587 million, was completed in June 2025. b) Earnings/loss per share from continuing and #### discontinued operations i. Basic earnings / loss per share Basic earnings/loss per share are calculated by dividing the net profit attributable to the Group, adjusted by the after-tax amount of the remuneration of contingently convertible preference shares (PPCC) recognised in equity and the capital perpetual preference shares (PPCA) (see note 21), if applicable, by the weighted average number of ordinary shares outstanding during that period, excluding the average number of own shares held through that period. Accordingly: | | | | | --- | --- | --- | | | | | | | 2025 | 2024 | | Profit (Loss) attributable to the Parent (EUR million) | 14,101 | 12,574 | | Remuneration of PPCC and PPCA (EUR million) (note 21) | (622) | (620) | | | 13,479 | 11,954 | | Of which: | | | | Profit (Loss) from discontinued operations (non controlling interest net) (EUR million) | 962 | 822 | | Profit (Loss) from continuing operations (non-controlling interest and PPCC and PPCA net) (EUR million) | 12,517 | 11,132 | | Weighted average number of shares outstanding | 14,890.30484 | 15,497.607269 | | Basic earnings (Loss) per share (euros) | 0.905 | 0.771 | | Of which, from discounted operations (euros) | 0.065 | 0.053 | | Basic earnings (Loss) per share from continuing operations (euros) | 0.840 | 0.718 | ii. Diluted earnings / loss per share Diluted earnings/loss per share are calculated by dividing the net profit attributable to the Group, adjusted by the after-tax amount of the remuneration of contingently convertible preference shares recognised in equity (PPCC) recognised in equity and the capital perpetual preference shares (PPCA) (see note 21) , by the weighted average number of ordinary shares outstanding during the year, excluding the average number of treasury shares and adjusted for all the dilutive effects inherent to potential ordinary shares (share options, and convertible debt securities). Accordingly, diluted earnings/loss per share were determined as follows: | | | | | --- | --- | --- | | | | | | | 2025 | 2024 | | Profit (Loss) attributable to the Parent (EUR million) | 14,101 | 12,574 | | Remuneration of PPCC and PPCA (EUR million) (note 21) | (622) | (620) | | Dilutive effect of changes in profit for the period arising from potential conversion of ordinary shares | — | — | | | 13,479 | 11,954 | | Of which: | | | | Profit (Loss) from discontinued operations (net of non-controlling interests) (EUR million) | 962 | 822 | | Profit (Loss) from continuing operations (net of non- controlling interests and PPCC and PPCA) (EUR million) | 12,517 | 11,132 | | Weighted average number of shares outstanding | 14,890,304,840 | 15,497,607,269 | | Dilutive effect of options/rights on shares | 85,269,647 | 70,110,570 | | Adjusted number of shares | 14,975,574,487 | 15,567,717,839 | | Diluted earnings (Loss) per share (euros) | 0.900 | 0.768 | | Of which, from discounted operations (euros) | 0.064 | 0.053 | | Diluted earnings (Loss) per share from continuing operations (euros) | 0.836 | 0.715 | 63 5. Remuneration and other #### benefits paid to the Bank's #### directors and senior managers The following section contains qualitative and quantitative disclosures on the remuneration paid to the members of the board of directors —both executive and non-executive directors— and senior managers for 2025 and 2024 . #### a) Remuneration of Directors i. Bylaw-stipulated emoluments The annual general meeting held on 22 March 2013 approved an amendment to the Bylaws, whereby the remuneration of directors in their capacity as board members became an annual fixed amount determined by the annual general meeting. This amount shall remain in effect unless the shareholders resolve to change it at a general meeting. However, the board of directors may elect to reduce the amount in any years in which it deems such action justified. The maximum remuneration established by the annual general meeting was EUR 6 million in 2025 (EUR 6 million in 2024), with two components: (a) an annual emolument and (b) attendance fees. The specific amount payable for the above-mentioned items to each of the directors is determined by the board of directors. For such purpose, it takes into consideration the positions held by each director on the board, their membership of the board and the board committees and their attendance to the meetings thereof, and any other objective circumstances considered by the board. The total Bylaw-stipulated emoluments earned by the directors in 2025 amounted to EUR 5.3 million (EUR 5.4 million in 2024 ) . Annual allotment For 2025, the board of directors, upon recommendation of the remuneration committee, approved a 3% increase in the annual allotments payable to the chair and members of the board and its committees (including the executive committee), as well as to the lead independent director and the non-executive Vice Chair .Accordingly, each director received, in respect of 2024 and 2025, the amounts corresponding to their service on the board and its committees, with such amounts determined by the specific position held, as detailed in the table below. | | | | | --- | --- | --- | | | | | | Amount per director in euros | 2025 | 2024 | | Members of the board of directors | 100,940 | 98,000 | | Members of the executive committee | 175,100 | 170,000 | | Members of the audit committee | 44,290 | 43,000 | | Members of the appointments committee | 28,840 | 28,000 | | Members of the remuneration committee | 28,840 | 28,000 | | Members of the risk supervision, regulation and compliance committee | 44,290 | 43,000 | | Members of the responsible banking, sustainability and culture committee | 28,840 | 28,000 | | Members of the innovation and technology committee | 28,840 | 28,000 | | Chair of the audit committee | 72,100 | 70,000 | | Chair of the appointments committee | 51,500 | 50,000 | | Chair of the remuneration committee | 51,500 | 50,000 | | Chair of the risk supervision, regulation and compliance committee | 72,100 | 70,000 | | Chair of the responsible banking, sustainability and culture committee | 51,500 | 50,000 | | Chair of the innovation and technology committee | 72,100 | 70,000 | | Lead independent directorA | 113,300 | 110,000 | | Non-executive Vice Chair | 30,900 | 30,000 | A. Glenn Hutchins has been allocated EUR 700,000 (including annual allowances and attendance fees) in minimum total annual pay set for the required time and dedication to perform his roles. 64 Attendance fees The directors receive fees for attending board and committee meetings, excluding executive committee meetings, where no attendace fees are received. In line with the adjustment to the annual allotments, the board of directors approved a 3% increase for 2025 in attendance fees compared with 2024. Accordingly, attendance fees for meetings of the board and its committees (with the exception of the Executive Committee, for which no attendance fees are payable) amounted, for the last two years, to the totals set out in the table below: | | | | | --- | --- | --- | | | | | | Attendance fees per director per meeting in euros | | | | | 2025 | 2024 | | Board of directors | 2,785 | 2,704 | | Audit committee and risk supervision, regulation and compliance committee | 1,821 | 1,768 | | Other committees (excluding executive committee) | 1,606 | 1,560 | ii. Salaries The executive directors receive salaries. In accordance with the policy approved by the annual general meeting, salaries are composed of a fixed annual remuneration and a variable one, which consists in a unique incentive, which is a deferred variable remuneration plan linked to multi-year objectives, which establishes the following payment scheme: • 40% of the variable remuneration amount, determined at year-end on the basis of the achievement of the established objectives, is paid immediately. • The remaining 60% is deferred over five years provided that the conditions of permanence in the Group and non-concurrence of the malus clauses are met, and subject to long term metrics, taking into account the following accrual scheme: – The accrual of the first and second portion (20% of total variable compensation, paid in 2027 and 2028) will be conditional on none of the malus clauses being triggered. – The accrual of the third, fourth and fifth portion (40% of total variable compensation and paid in 2029 , 2030 and 2031), is linked to objectives related to the period 2025 —2027 and the metrics and scales associated with these objectives. The fulfilment of the objectives determines the percentage to be paid of the deferred amount in these three annuities, and these targets can reduce these amounts and the number of deferred instruments, or increase them up to a maximum achievement ratio of 125% , so executives have the incentive to exceed their targets. In accordance with current remuneration policies, the amounts already paid will be subject to a possible recovery (clawback) by the Bank during the period set out in the policy in force at each moment. Payment of the approved incentive is paid 40% in cash and the remaining 60% in instruments, consisting of Banco Santander  shares and restricted stock units (RSUs) of PagoNxt, split as: • the amount of PagoNxt RSUs set for each year; and • the rest, all in shares of Banco Santander. Comparative of executive remuneration (Chair and CEO) The target bonus of the Executive Chair and the CEO for 2025 remains unchanged compared to 2024. Variable contributions to pensions were not modified in 2025, so the amounts are the 22% of the 30% of the last three assigned bonus' average. In assessing individual performance, the Board considered the Grupo Santander’s strong results for 2025, reflecting continued delivery of our strategic plan. Attributable profit reached EUR 14,101 million in 2025, up 12% year-on-year (or + 16% in constant euros), with a TSR during the year of 132% (+60% in relative terms vs. our peer group). The Board also evaluated the leadership of the Executive Chair and the Chief Executive Officer in delivering these results and advancing the Group’s strategic priorities. Taking these factors into account, it determined that both executives achieved an 'Exceptional' level of performance and approved the corresponding variable remuneration. Moreover, the ratio of executive directors’ total remuneration to underlying attributable profit fell to 0.17% from 0.18% in 2024. 65 iii. Detail by director The detail, by bank director, of the short-term (immediate) and deferred (not subject to long-term goals) remuneration for 2025 and 2024 is provided below: | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | EUR thousand | | | | | | | | | | | | | | | | | | | | | | | 2025 | | | | | | | | | | | | | | | | | | | 2024 | | Bylaw-stipulated emoluments | | | | | | | | | | | | | | | Pension contribution | Other remuneration1 | Total | | Total | | Annual emolument | | | | | | | | | Short-term and deferred (not subject to long-term goals) salaries of executive directors | | | | | | | | | | BoardF | Executive committee | Audit committee | Appointments committee | Remuneration commitee1 | Risk supervision, regulation and compliance oversight committee2 | Responsible banking, sustainability and culture committee | Innovation and technology committee | Attendance fees and commissions | Fixed | Variable- immediate payment | | Deferred variable | | Total | | | In cash | In instru ments | In cash | In instru ments | | | Ana Botín | 101 | 175 | — | — | — | — | — | 29 | 44 | 3,435 | 2,003 | 2,003 | 1,001 | 1,002 | 9,444 | 1,341 | 843 | 11,977 | | 12,127 | | Héctor GrisiA | 101 | 175 | — | — | — | — | — | 29 | 44 | 3,150 | 1,384 | 1,384 | 692 | 692 | 7,302 | 1,120 | 718 | 9,489 | | 9,137 | | José Antonio Álvarez | 132 | 175 | — | — | — | 44 | — | 29 | 67 | — | — | — | — | — | — | — | 2,440 | 2,887 | | 3,698 | | Glenn Hutchins | 412 | — | — | 29 | 80 | — | — | 101 | 78 | — | — | — | — | — | — | — | — | 700 | | 700 | | Homaira Akbari | 101 | — | 44 | — | — | — | 29 | 29 | 81 | — | — | — | — | — | — | — | — | 284 | | 285 | | Javier Botín A | 101 | — | — | — | — | — | — | — | 36 | — | — | — | — | — | — | — | — | 137 | | 144 | | Sol Daurella | 101 | — | — | 29 | 29 | — | 80 | — | 75 | — | — | — | — | — | — | — | — | 314 | | 292 | | Henrique de Castro | 101 | — | 44 | — | 29 | — | — | 29 | 80 | — | — | — | — | — | — | — | — | 283 | | 300 | | Gina Díez | 101 | — | — | 29 | — | — | 29 | — | 63 | — | — | — | — | — | — | — | — | 222 | | 225 | | Luis Isasi | 101 | 175 | — | — | 29 | 44 | — | — | 74 | — | — | — | — | — | — | — | 1,000 | 1,423 | | 1,440 | | Belén Romana | 101 | 175 | 44 | 80 | — | 44 | — | 29 | 107 | — | — | — | — | — | — | — | — | 581 | | 599 | | Pamela Walkden | 101 | — | 44 | — | — | 116 | 29 | — | 93 | — | — | — | — | — | — | — | — | 383 | | 381 | | Germán de la Fuente | 101 | — | 116 | — | — | 44 | — | — | 83 | — | — | — | — | — | — | — | — | 344 | | 338 | | Carlos Barrabés B | 101 | — | — | 29 | — | — | 29 | 29 | 71 | — | — | — | — | — | — | — | — | 259 | | 128 | | Antonio Weiss C | 101 | — | — | — | 29 | — | — | — | 50 | — | — | — | — | — | — | — | — | 180 | | 72 | | Bruce Carnegie-Brown D | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 78 | | Ramiro Mato E | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | 271 | | Total 2025 | 1,857 | 875 | 292 | 196 | 196 | 292 | 196 | 304 | 1,047 | 6,585 | 3,387 | 3,387 | 1,693 | 1,694 | 16,746 | 2,461 | 5,001 | 29,462 | | — | | Total 2024 | 1,791 | 933 | 306 | 183 | 168 | 263 | 190 | 280 | 1,240 | 6,585 | 3,130 | 3,130 | 1,877 | 1,879 | 16,601 | 2,444 | 5,815 | — | | 30,214 | A. All amounts received were reimbursed to Fundación Botín. B. Director and member of the nomination committee, responsible banking, sustainability and culture committee and innovation and technology committee since 27 June 2024. C. Director since 27 June 2024. D. Stepped down as director on 22 March 2024. E. Stepped down as director on 27 June 2024. F. Also includes emoluments for other roles in the board. Other remuneration includes EUR 1,000 thousand for the role as non-executive Chair of the Santander España business unit and for attending its board and committee meetings for Luis Isasi. For José Antonio Álvarez, this amount includes remuneration as strategic advisor of Grupo Santander, life and health insurance contributions (EUR 678 thousand ) and part of the former supplement for having waived the death and disability policy (EUR 12 thousand). Changes in the chairship or membership of the committees: 1. Antonio Weiss was appointed member of the remuneration committee on 1 January 2025. 2. José Antonio Álvarez was appointed member of the risk supervision, regulation and compliance oversight committee on 1 January 2025. 66 Following is the detail by executive director of the salaries linked to multi-year objectives at their fair Value, which will only be received if the conditions of permanence in the Group, non-applicability of malus clauses and achievement of the established objectives are met (or, as the case may be, of the minimum thresholds thereof, with the consequent reduction of amount agreed-upon at the end of the year) in the terms described in note 42. | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | EUR thousand | | | | | | | | 2025 | | | | 2024 | | | Variable subject to Long-term objectives1 | | | | | | | In cash | In shares | In RSUs | Total | Total | | Ana Botín | 701 | 1,893 | 210 | 2,804 | 2,332 | | Héctor Grisi | 484 | 1,277 | 176 | 1,938 | 1,611 | | Total | 1,185 | 3,170 | 386 | 4,742 | 3,943 | 1. Corresponds with the fair value of the maximum amount they are entitled to in a total of 3 years : 2029, 2030 and 2031 subject to conditions of continued service, with the exceptions provided, and to the non-applicability of malus clauses and achievement of the objectives established The face value of the three aforementioned deferred amounts is EUR 6,774 thousand for 2025 (EUR 4,006 thousand for Ana Botín and EUR 2,768 thousand for Héctor Grisi) The fair value has been determined at the grant date based on the valuation report of an independent expert, Willis Towers Watson. Based on the design of the plan for 2025 and the levels of achievement of similar plans in comparable entities, the fair value considered is 70% of the variable remuneration subject to long-term objectives (see note 42). Note 5.e below includes disclosures on the shares delivered from the deferred remuneration schemes in place in previous years and for which delivery conditions were met, as well as on the maximum number of shares that may be received in future years in connection with the aforementioned 2025 and 2024 variable remuneration plans. #### b) Remuneration of the board members as #### representatives of the Bank By resolution of the executive committee, all the remuneration received by the Bank’s directors who represent the Bank on the boards of directors of listed companies in which the Bank has a stake, paid by those companies and relating to appointments made on or after 18 March 2002, accrues to the Group. In 2025 and 2024 the Bank’s directors did not receive any remuneration in respect of these representative duties. On the other hand, in their personal capacity, in 2025 Homaira Akbari was paid USD 100 thousand (EUR 85 thousand ) as member of the board of Santander Consumer USA Holdings, Inc. and EUR 200 thousand as member of the board of PagoNxt S.L., and José Antonio Álvarez and Henrique de Castro were each paid the same EUR 200 thousand as members of the board of PagoNxt S.L. (Henrique de Castro also received EUR 15 thousand as member of the nomination committee of PagoNxt, S.L.). Likewise, Pamela Walkden was paid GBP 100 thousand (EUR 115 thousand) as member of Santander UK plc and Santander UK Group Holdings; and Belén Romana EUR 157 thousand as member of the Board of Santander Insurance, S.L. Likewise, Luis Isasi was paid EUR 1,000 thousand as non- executive Chair of the Santander España business unit and for attending its board and committee meetings (amounts paid by Banco Santander, S.A.). And finally, José Antonio Álvarez, as strategic adviser of Grupo Santander, received fixed remuneration of EUR 1,750 thousand. In addition, he received the life and health insurance contributions and the part of the former supplement for having waived the death and disability policy. #### c) Post-employment and other long-term benefits In 2012, the contracts of Ana Botín and other members of the Bank's senior management with defined benefit pension commitments were modified to transform these commitments into a defined contribution system, which covers the contingencies of retirement, disability and death. From that moment on, the Bank makes annual contributions to their pension system for their benefit. This system gives them the right to receive benefits upon retirement, regardless of whether or not they are active at the Bank at such time, based on contributions to the system, and replaced their previous right to receive a pension supplement in the event of retirement. The initial balance for Ana Botín in the new defined benefits system corresponded to the market value of the assets from which the provisions corresponding to the respective accrued obligations had materialised on the date on which the old pension commitments were transferred into the new benefits system. Since 2013 , the Bank has made annual contributions to the benefits system for executive directors and other members of executive team, in proportion to their respective pensionable bases, until they leave Grupo Santander or until their retirement within the Group, death, or disability. The benefit plan system is outsourced to Santander Seguros y Reaseguros, Compañía Aseguradora, S.A., and the economic rights of the foregoing directors under this plan belong to them regardless of whether or not they are active at the Bank at the time of their retirement, death or disability. 67 In accordance with the provisions of the remuneration regulations, contributions made calculated on variable remuneration are subject to the discretionary pension benefits regime. Under this regime, contributions are subject to malus clauses and clawback according to the policy in force at any given time and during the same period in which the variable remuneration is deferred. Furthermore, they must be invested in bank shares for a period of five years from the date when the executive director leaves the Group, regardless of whether or not they leave to retire. Once that period has elapsed, the amount invested in shares will be reinvested, along with the remainder of the cumulative balance corresponding to the executive director, or it will be paid to the executive director or to their beneficiaries in the event of a contingency covered by the benefits system. As per the director´s remuneration policy approved at the 23 March 2018 general shareholder´s meeting, the system was changed with a focus on: • Aligning the annual contributions with practices of comparable institutions. • Reducing future liabilities by eliminating the supplementary benefits scheme in the event of death (death of spouse or parent) and permanent disability of serving directors. • Not increasing total costs for the Bank. The changes to the system were the following: • Fixed and variable pension contributions were reduced to 22% of the respective pensionable bases. The gross annual salaries and the benchmark variable remuneration were increased in the corresponding amount with no increase in total costs for the Bank. The pensionable base for the purposes of the annual contributions for the executive directors is the sum of fixed remuneration plus 30% of the average of their last three variable remuneration amounts. This means complying with Circular 2/2016 of the Bank of Spain, standard 41, on pension benefits, by which a part of not less than 15% of the total contribution must be based on variable components. • The death and disability supplementary benefits were eliminated since 1 April 2018. A fixed remuneration supplement (included in other remuneration in section a.iii in this note) was implemented the same date. During 2025, this fixed remuneration supplement has expired both for Ana Botín and José Antonio Álvarez, in line with the age of 65 initially set at the time this remuneration component was approved. • The total amount insured for life and accident insurance was increased. The provisions recognised in 2025 and 2024 for retirement pensions were as follows: | | | | | --- | --- | --- | | | | | | EUR thousand | | | | | 2025 | 2024 | | Ana Botín | 1,341 | 1,339 | | Héctor Grisi | 1,120 | 1,105 | | Total | 2,461 | 2,445 | Following is a detail of the balances relating to each of the directors under the welfare system as of  31 December 2025 and 2024 : | | | | | --- | --- | --- | | | | | | EUR thousand | | | | | 2025 | 2024 | | Ana Botín | 65,027 | 54,731 | | Héctor Grisi | 2,033 | 1,299 | | José Antonio Álvarez | 23,178 | 20,326 | | Total | 90,238 | 76,356 | #### d) Insurance The Group pays for life insurance policies for the Bank’s directors, who will be entitled to receive benefits if they are declared disabled. In the event of death, the benefits will be payable to their heirs. The premiums paid by the Group are included in the 'Other remuneration' column of the table shown in Note 5.a.iii above. Also, the following table provides information on the sums insured for the Bank’s directors: | | | | | --- | --- | --- | | | | | | Insured capital | | | | EUR thousand | | | | | 2025 | 2024 | | Ana Botín | 20,659 | 21,525 | | Héctor Grisi | 12,600 | 12,600 | | José Antonio Álvarez | 10,500 | 11,215 | | Total | 43,759 | 45,340 | The insured capital has been modified in 2018 for Ana Botín  as part of the pension systems transformation set out in note 5.c) above, which has encompassed the elimination of the supplementary benefits systems (death of spouse and death of parent) and the increase of the life and accident insurance annuities. 68 During 2025 and 2024, the Group has disbursed a total amount of EUR 8.3 million and EUR 13.5 million , respectively, for the payment of civil-liability insurance premiums. These premiums correspond to several civil- liability insurance policies that hedge, among others, directors, senior management and other managers and employees of the Group and the Bank itself, as well as its subsidiaries, in light of certain types of potential claims of third parties. For this reason, it is not possible to disaggregate or individualize the amount that correspond to the directors and executives. As of 31 December 2025 and 2024, no life insurance commitments exist for the Group in respect of any other directors . #### e) Deferred variable remuneration systems The following information relates to the maximum number of shares to which the executive directors are entitled at the beginning and end of 2025 and 2024 due to their participation in the deferred variable remuneration systems, which instrumented a portion of their variable remuneration relating to 2025 and prior years, as well as on the deliveries, in shares or in cash, made to them in 2025 and 2024 once the conditions for the receipt thereof had been met (see note 42): i. Deferred variable compensation plan linked to #### multiannual objectives In the annual shareholders meeting of 18 March 2016, with the aim of simplifying the remuneration structure, improving the ex-ante risk adjustment and increasing the incidence of long-term objectives, the bonus plan (deferred and conditioned variable compensation plan) and ILP were replaced by one single plan. The variable remuneration of executive directors and certain executives (including senior management) corresponding to 2025 has been approved by the board of directors and implemented through the tenth cycle of the deferred variable remuneration plan linked to multi- year objectives. The application of the plan was authorised by the annual general meeting of shareholders, as it entails the delivery of shares to the beneficiaries. As indicated in section a.ii of this note, 60% of the variable remuneration amount is deferred over five years for executive directors , to be paid, where appropriate, provided that the conditions of permanence in the Group, according to the following accrual scheme: • The accrual of the first and second parts (instalments in 2027 and 2028 ) is conditional on none of the malus clauses being triggered. • The accrual of the third, fourth and fifth parts (instalments in 2029 , 2030 and 2031) is linked to non-concurrence of malus clauses and the fulfilment of certain objectives related to the 2024 ‑ 2027 period. These objectives and their respective weights are: – Banco Santander’s consolidated Return on tangible equity (RoTE) target in 2027 (weight of 30% ). – Relative performance of Banco Santander's total shareholder return (TSR) in 2025 -2027 in respect of the weighted TSR of a peer group comprising 9 credit institutions, with the appropriate TSR ratio based on the group’s TSR among its peers (weight of 50%). – Four sustainability metrics which have different weighting (with a total weight of 20%). The degree of compliance with the above objectives determines the percentage to be applied to the deferred amount in these three annuities, with a maximum achievement ratio of 125%, so executives have the incentive to exceed their targets. Both the immediate payment and the two first deferrals (short-term part) are paid 50% in cash and the remaining 50% in instruments. The last three deferrals (conditioned to long-term metrics) are paid 25% in cash and 75% in instruments. The accrual of deferred amounts (whether or not subject to performance measures) is conditioned, in addition to the permanence of the beneficiary in the Group, to non- occurrence, during the period prior to each of the deliveries, of any the circumstances giving rise to the application of malus as set out in the Group’s remuneration policy in its chapter related to malus and clawback. Likewise, the amounts already paid of the incentive will be subject to clawback by the Bank in the cases and during the term foreseen in said policy,  and in accordance with the terms and conditions foreseen in it. Malus and clawback clauses are triggered by poor financial performance of Banco Santander, a division or area, or exposures from staff as a result of an executive(s)’s management of, at least, one of these factors: i. Significant failures in risk management committed by the entity, or by a business unit or risk control. ii. The increase suffered by the entity or by a business unit of its capital needs, not foreseen at the time of generation of the exposures. iii. Regulatory sanctions or judicial sentences from events that could be attributable to the unit or the personnel responsible for those. Also, the breach of internal codes of conduct of the entity. iv. Irregular conduct, whether individual or collective. In this regard, the negative effects derived from the marketing of inappropriate products and the responsibilities of the people or bodies that made those decisions will be specially considered. 69 In addition to the existing policy on malus and clawback clauses of our remuneration policy, the addendum to our remuneration policy entitled 'Financial Statement Restatement Compensation' regulates the recoupment of compensation received by the executive directors of Banco Santander, S.A., and senior management, in the event of a financial restatement (according to the regulation) resulting from material noncompliance with financial reporting requirements under US federal securities laws. The maximum amount of shares to be delivered under the plan is within the maximum amount of the award to be delivered in shares (EUR 11.5 million) approved at the 2025 AGM for executive directors. At its meeting on 25 November 2025 and pursuant to the powers granted by shareholders at the 2025 AGM, the board agreed to amend the calculation period used to determine the number of shares to be delivered from 50 to 30 trading sessions (under no circumstances may the number of shares exceed the maximum approved at the AGM), as the board considered that this better reflects market practice and enables us to offset share price volatility. Thus, the number of shares to be delivered under the 2025 policy has been calculated with the weighted average daily volume of weighted average listing prices of Banco Santander shares in the 30 trading sessions prior to the Friday (not inclusive) before 4 February 2025 (the date on which the board approved the 2025 bonus for executive directors), which was EUR 10.261 per share. According to an independent experts' valuation, the price per PagoNxt, S.L. RSU equals EUR 61.07. #### ii.Shares assigned by deferred variable remuneration plans The following table shows the number of Santander shares assigned to each director already in service and pending delivery as of 1 January 2024, 31 December 2024 and 31 December 2025, as well as the gross shares that were delivered to them in 2024 and 2025, either in the form of an immediate payment or a deferred payment. In this case after having been appraised by the board, at the proposal of the remuneration committee, that the corresponding one-fifth of each plan had accrued. They come from the deferred conditional and linked to multi-year objectives in 2019, 2020, 2021, 2022, 2023, 2024 and 2025 were formalized. 70 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Share-based variable remuneration | | | | | | | | | | Maximum number of shares to be delivered at January 1,2024 | Shares delivered in 2024 (immediate payment 2023 variable remuneration) | Shares delivered in 2024 (deferred payment 2022 variable remuneration) | Shares delivered in 2024 (deferred payment 2021 variable remuneration) | Shares delivered in 2024 (deferred payment 2020 variable remuneration) | Shares delivered in 2024 (deferred payment 2019 variable remuneration) | Variable remuneration 2024 (Maximum number of shares to be delivered) | | 2019 variable remuneration | | | | | | | | | Ana Botín | 70,905 | — | — | — | — | (35,452) | — | | José Antonio Álvarez | 47,386 | — | — | — | — | (23,693) | — | | | 118,290 | — | — | — | — | (59,145) | — | | 2020 variable remuneration | | | | | | | | | Ana Botín | 93,146 | — | — | — | (31,049) | — | — | | José Antonio Álvarez | 50,594 | — | — | — | (16,865) | — | — | | | 143,740 | — | — | — | (47,914) | — | — | | 2021 variable remuneration | | | | | | | | | Ana Botín | 710,698 | — | — | (177,675) | — | — | — | | José Antonio Álvarez | 479,644 | — | — | (119,911) | — | — | — | | | 1,190,342 | — | — | (297,586) | — | — | — | | 2022 variable remuneration | | | | | | | | | Ana Botín | 358,419 | — | (62,334) | — | — | — | — | | José Antonio Álvarez | 241,954 | — | (42,079) | — | — | — | — | | | 600,374 | — | (104,413) | — | — | — | — | | 2023 variable remuneration | | | | | | | | | Ana Botín | 1,127,209 | (469,286) | — | — | — | — | — | | Héctor Grisi | 749,143 | (321,645) | — | — | — | — | — | | | 1,876,352 | (790,931) | — | — | — | — | — | | 2024 variable remuneration | | | | | | | | | Ana Botín | — | — | — | — | — | — | 976,463 | | Héctor Grisi | — | — | — | — | — | — | 656,033 | | | — | — | — | — | — | — | 1,632,496 | | 2025 variable remuneration 1 | | | | | | | | | Ana Botín | — | — | — | — | — | — | — | | Héctor Grisi | — | — | — | — | — | — | — | | | — | — | — | — | — | — | — | 1. For each director, 40% of the shares indicated correspond to the short-term variable (or immediate payment). The remaining 60% is deferred for delivery, where appropriate, in the next five years, the last three being subject to the fulfilment of multiannual objectives. Maximum opportunity subject to regulatory ratio compliance. 71 | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | Share-based variable remuneration | | | | | | | | | | | Maximum number of shares to be delivered at December 31, 2024 | Instruments matured but not consolidated at January 1, 2025 2 | Shares delivered in 2025 (immediate payment 2024 variable remuneration) | Shares delivered in 2025 (deferred payment 2023 variable remuneration) | Shares delivered in 2025 (deferred payment 2022 variable remuneration) | Shares delivered in 2025 (deferred payment 2021 variable remuneration) | Shares delivered in 2025 (deferred payment 2020 variable remuneration) | Shares delivered in 2025 (deferred payment 2019 variable remuneration) | Variable remuneration 2025 (Maximum number of shares to be delivered) | Maximum number of shares to be delivered at December 31, 2025 | | | | | | | | | | | | | 35,452 | — | — | — | — | — | — | (35,452) | — | — | | 23,693 | — | — | — | — | — | — | (23,693) | — | — | | 59,145 | — | — | — | — | — | — | (59,145) | — | — | | | | | | | | | | | | | 62,097 | — | — | — | — | — | (31,049) | — | — | 31,048 | | 33,729 | — | — | — | — | — | (16,865) | — | — | 16,864 | | 95,826 | — | — | — | — | — | (47,914) | — | — | 47,912 | | | | | | | | | | | | | 533,023 | (44,774) | — | — | — | (162,750) | — | — | — | 325,499 | | 359,733 | (30,218) | — | — | — | (109,838) | — | — | — | 219,677 | | 892,756 | (74,992) | — | — | — | (272,588) | — | — | — | 545,176 | | | | | | | | | | | | | 296,085 | — | — | — | (62,334) | — | — | — | — | 233,751 | | 199,875 | — | — | — | (42,079) | — | — | — | — | 157,796 | | 495,961 | — | — | — | (104,413) | — | — | — | — | 391,548 | | | | | | | | | | | | | 657,923 | — | — | (114,421) | — | — | — | — | — | 543,502 | | 427,498 | — | — | (74,347) | — | — | — | — | — | 353,151 | | 1,085,421 | — | — | (188,768) | — | — | — | — | — | 896,653 | | | | | | | | | | | | | 976,463 | — | (404,447) | — | — | — | — | — | — | 572,016 | | 656,033 | — | (279,480) | — | — | — | — | — | — | 376,553 | | 1,632,496 | — | (683,927) | — | — | — | — | — | — | 948,569 | | | | | | | | | | | | | — | — | — | — | — | — | — | — | 602,746 | 602,746 | | — | — | — | — | — | — | — | — | 408,159 | 408,159 | | — | — | — | — | — | — | — | — | 1,010,904 | 1,010,904 | 2.The levels of achievement of the multi-year metrics of the long-term variable remuneration plans: 1) Seventh cycle of the deferred multi-year objectives variable remuneration plan (2022): 115.2% of achievement for the period 2022-2024. a. RoTE metric for 2024 year-end period at 150%. Weight of 40.0%. b. Relative TSR metric in 2022-2024 period at 83% of achievement. Weight of 40.0%. c. Sustainability metrics at 25% of achievement. Weight of 20.0%. 2) Sixth cycle of the deferred multi-year objectives variable remuneration plan (2021): 91.6% of achievement for the period 2021-2023. a. CET1 metric at 100% of achievement for 2023 year-end period (target 12.00%). Weight of 33.3%. b. Underlying BPA growth at 150% of achievement (target growth of 100%). Weight of 33.3%. c. TSR metric at 25% of achievement (target of 33 to 66 percentile). Weight of 33.3%. 3) Fifth cycle of the deferred multi-year objectives variable remuneration plan (2020): 83.0% of achievement for the period 2020-2022. a. CET1 metric at 100% of achievement for 2022 year-end period (target 12.00%). Weight of 33.3%. b. Underlying BPA growth at 150% of achievement (target growth of 10%). Weight of 33.3%. c. TSR metric at 0% of achievement (minimum target of 33% not reached). Weight of 33.3%. 72 Furthermore, the maximum number of RSUs of PagoNxt, S.L. to be delivered under the current plan (and subject to regulatory ratio compliance) is 9,415 and 7,909 units for Ana Botín and Héctor Grisi, respectively. In addition, the table below shows the cash delivered in 2025 and 2024, by way of either immediate payment or deferred payment, in the latter case once the Board had determined, at the proposal of the remuneration committee, that one deferral relating to each plan had accrued: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR thousand | | | | | | | 2025 | | 2024 | | | | Cash paid (immediate payment 2024 variable remuneration) | Cash paid (deferred payments from 2023, 2022, 2021 and 2020 variable remuneration) | Cash paid (immediate payment 2023 variable remuneration) | Cash paid (deferred payments from 2022, 2021, 2020 and 2019 variable remuneration) | | Ana Botín | 1,851 | 1,759 | 1,780 | 1,419 | | Héctor Grisi | 1,279 | 366 | 1,220 | 863 | | José Antonio Álvarez | — | 815 | — | 945 | | Total | 3,130 | 2,940 | 3,000 | 3,228 | #### iii. #### Information on former members of the board of directors The chart below includes  information on the maximum number of shares to which former members of the board of directors, are entitled for their participation in the various deferred variable remuneration systems, which instrumented a portion of their variable remuneration relating to the years in which they were executive directors. Also set forth below is information on the deliveries, whether in shares or in cash, made in 2025 and 2024 to former board members, upon achievement of the conditions for the receipt thereof (see note 42): | | | | | --- | --- | --- | | | | | | Maximum number of shares to be delivered | | | | | 2025 | 2024 | | Deferred conditional variable remuneration plan and linked to objectives (2019) | — | 24,490 | | Deferred conditional variable remuneration plan and linked to objectives (2020) | 35,511 | 71,024 | | Deferred conditional variable remuneration plan and linked to objectives (2021) | 137,400 | 206,100 | | Deferred conditional variable remuneration plan and linked to objectives (2022) | — | — | | Deferred conditional variable remuneration plan and linked to objectives (2023) | — | — | | Deferred conditional variable remuneration plan and linked to objectives (2024) | — | — | 73 | | | | | --- | --- | --- | | | | | | Number of shares delivered | | | | | 2025 | 2024 | | Deferred conditional variable remuneration plan and linked to objectives (2018) | — | 29,860 | | Deferred conditional variable remuneration plan and linked to objectives (2019) | 24,490 | 24,490 | | Deferred conditional variable remuneration plan and linked to objectives (2020) | 35,512 | 35,512 | | Deferred conditional variable remuneration plan and linked to objectives (2021) | 68,700 | 12,911 | | Deferred conditional variable remuneration plan and linked to objectives (2022) | — | — | | Deferred conditional variable remuneration plan and linked to objectives (2023) | — | — | | Deferred conditional variable remuneration plan and linked to objectives (2024) | — | — | In addition, EUR 724 thousand and EUR 650 thousand relating to the deferred portion payable in cash of the aforementioned plans were paid each in 2025 and 2024. #### f) Loans Grupo Santander’s direct risk exposure to the bank’s directors and the guarantees provided for them are detailed below. These transactions were made on terms equivalent to those that prevail in arm’s-length transactions or the related compensation in kind was recognized : | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | EUR thousand | | | | | | | | | | 2025 | | | | 2024 | | | | | Loans and credits | Guarantees | Total | | Loans and credits | Guarantees | Total | | Ana Botín | 3 | — | 3 | | — | — | — | | Héctor Grisi | — | — | — | | — | — | — | | José Antonio Álvarez | — | — | — | | — | — | — | | Glenn Hutchins | — | — | — | | — | — | — | | Antonio Francesco Weiss B | — | — | — | | — | — | — | | Belén Romana | — | — | — | | — | — | — | | Bruce Carnegie-Brown A | — | — | — | | — | — | — | | Germán de la Fuente | — | — | — | | — | — | — | | Gina Díez Barroso | — | — | — | | 5 | — | 5 | | Henrique de Castro | — | — | — | | — | — | — | | Homaira Akbari | — | — | — | | — | — | — | | Javier Botín | — | — | — | | — | — | — | | Juan Carlos Barrabés  C | 137 | — | 137 | | 138 | — | 138 | | Luis Isasi | — | — | — | | — | — | — | | Pamela Walkden | — | — | — | | — | — | — | | Ramiro Mato D | — | — | — | | — | — | — | | Sol Daurella | — | — | — | | — | — | — | | | 140 | — | 140 | | 143 | — | 143 | A. Ceased as director of Banco Santander, S.A. on 22 March 2024. B. Director since 27 June 2024. C. Director since 27 June 2024. D. Ceased as director of Banco Santander, S.A. on 27 June 2024. 74 #### g) Senior management The table below includes the amounts relating to the short-term remuneration of the members of senior management at 31 December 2025 and those at 31 December 2024, excluding the remuneration of the executive directors, which is detailed above. | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | EUR thousand | | | | | | | | | | | | | | Short-term salaries and deferred remuneration | | | | | | | | | | | | | Variable remuneration (bonus) - Immediate payment | | | Deferred variable remuneration | | | | | | Year | Number of persons | Fixed | In cash | In instruments 2 | | In cash | In instruments 3 | Pensions | Other remuneration1 | Total | | 2025 | 15 | 19,255 | 9,179 | 9,180 | | 4,306 | 4,306 | 4,910 | 6,456 | 57,592 | | 2024 | 14 | 16,466 | 7,376 | 7,377 | | 3,319 | 3,320 | 4,520 | 7,153 | 49,531 | 1.Includes other remuneration items such as life and medical insurance premiums and localization aids and lastly RSUs from PagoNxt S.L., for the work of one director in said entity. 2.The amount of immediate payment for 2024 is 894,587 shares( 1,611,965 Santander shares   in 2024). 3.The deferred amount in instruments not linked to long-term objectives for 2024 is 416,410 shares ( 725,399 Santander shares in 2024). In addition to the amounts reflected in the table, salary remunerations amounting to EUR 4,118 thousand were granted in the form of buyouts and sign-on awards, related to the recruitment of new members who joined this employee group during the year. In 2025 , the ratio of variable to fixed pay components was 134% of the total for senior managers, well within the maximum limit of 200% set by 2024 AGM. Also, the detail of the breakdown of the remuneration linked to long-term objectives of the members of senior management at 31 December 2025 and 31 December 2024 is provided below. These remuneration payments shall be received, as the case may be, in the corresponding deferral periods, upon achievement of the conditions stipulated for each payment (see note 42): . | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR thousand | | | | | | | | Variable remuneration subject to long-term objectives 1 | | | | Year | Number of people | Cash payment | Instrument payment | Total | | 2025 | 15 | 4,521 | 4,522 | 9,043 | | 2024 | 14 | 3,485 | 3,486 | 6,971 | 1. Relates to the fair value of the maximum annual amounts for years 2029, 2030 and 2031 of the tenth cycle of the deferred conditional variable remuneration plan (2028, 2029 and 2030 for the ninth cycle of the deferred variable compensation plan linked to annual objectives for the year 2024). The face value of the three aforementioned deferred amounts is EUR 12,919 thousand for 2025 Additionally, members of senior management who stepped down from their roles in 2025 consolidated salary remuneration and other remuneration for a total amount of EUR 2,905 thousand (EUR 12,303 thousand in 2024). In 2025 rights regarding variable pay subject to long-term objectives amounted to EUR 342 (thousand (EUR 633 thousand were generated in 2024 for this collective. 75 The maximum number of Santander shares that the members of senior management at each plan grant date (excluding executive directors) were entitled to receive as of 31 December 2025 and 31 December 2024 relating to the deferred portion under the various plans then in force is the following (see note 42): | | | | | --- | --- | --- | | | | | | Maximum number of shares to be delivered | | | | | 2025 | 2024 | | Deferred conditional variable remuneration plan and linked to objectives (2019) | — | 71,294 | | Deferred conditional variable remuneration plan and linked to objectives (2020) | 145,704 | 370,522 | | Deferred conditional variable remuneration plan and linked to objectives (2021) | 486,863 | 966,680 | | Deferred conditional variable remuneration plan and linked to objectives (2022) | 891,305 | 1,430,464 | | Deferred conditional variable remuneration plan and linked to objectives (2023) | 934,609 | 1,395,815 | | Deferred conditional variable remuneration plan and linked to objectives (2024) | 1,601,213 | — | Since the conditions established in the corresponding deferred share-based remuneration schemes for prior years had been met, the following number of Santander shares was delivered in 2025 and 2024 to the senior management, in addition to the payment of the related cash amounts: | | | | | --- | --- | --- | | | | | | Number of shares delivered | | | | | 2025 | 2024 | | Deferred conditional variable remuneration plan and linked to objectives (2018) | — | 57,730 | | Deferred conditional variable remuneration plan and linked to objectives (2019) | 54,249 | 71,294 | | Deferred conditional variable remuneration plan and linked to objectives (2020) | 145,704 | 185,261 | | Deferred conditional variable remuneration plan and linked to objectives (2021) | 243,433 | 351,777 | | Deferred conditional variable remuneration plan and linked to objectives (2022) | 266,390 | 357,615 | | Deferred conditional variable remuneration plan and linked to objectives (2023) | 233,652 | 1,212,984 | | Deferred conditional variable remuneration plan and linked to objectives (2024) | 1,399,679 | — | As indicated in note 5.c above, senior management participate in the benefit system created in 2012, which covers the contingencies of retirement, disability and death. Banco Santander makes annual contributions to the benefit plans of its senior managers. In 2012, the contracts of the senior managers with benefit pension commitments were amended to transform them into a contribution system. The system, which is outsourced to Santander Seguros y Reaseguros, Compañía Aseguradora, S.A., gives senior managers the right to receive benefits upon retirement, regardless of whether or not they are active at Banco Santander at such time, based on contributions to the system. This new system replaced their previous right to receive a pension supplement in the event of retirement. In the event of pre-retirement, and up to the retirement date, senior managers appointed prior to September 2015 are entitled to receive an annual allowance. In addition, further to applicable remuneration regulations, from 2016 (inclusive), a discretionary pension benefit component of at least 15% of total remuneration  in contributions to the pension system has been included. Under the regime corresponding to these discretionary benefits, the contributions that are calculated on variable remunerations are subject to malus and clawback clauses, subject to policies applicable at each time, and during the same period in which the variable remuneration is deferred. Likewise, the annual contributions calculated on variable remunerations must be invested in Bank shares for a period of five years from the date that the senior manager leaves the Group, regardless of whether or not they leave to retire. Once that period has elapsed, the amount invested in shares will be reinvested, along with the remainder of the cumulative balance corresponding to the senior manager, or it will be paid to the senior manager or to their beneficiaries in the event of a contingency covered by the benefits system. The contracts of some members of senior management were modified at the beginning of 2018 with the same objective and changes indicated in section c of this note for Ana Botín. The modifications, which are aimed at aligning the annual contributions with the practices of comparable institutions and reducing the risk of future obligations by eliminating the supplementary scheme for death (widowhood and orphanhood) and permanent disability in service without increasing the costs to the bank, are as follows: 76 • Contributions to the pensionable bases were reduced. Gross annual salaries were increased in the corresponding amount. • The death and disability supplementary benefits were eliminated since 1 January 2018 for some members of senior management and since 1 April 2018 for executive directors. A fixed remuneration supplement reflected in other remuneration in the table above was implemented on the same date. • The amounts insured for life and accident insurance were increased. All of the above was done without an increase in total cost for the Bank. The balance as of 31 December 2025 in the pension system for those who were part of senior management at year end amounted to EUR 51 million (EUR 51 million at 31 December 2024). The net charge to income corresponding to pension amounted to EUR 4.9 million  in 2025 (EUR 4.5 million in 31 December 2024). In 2025 and 2024 there have been no payments in the form of a single payment of the annual voluntary pre- retirement allowance. Additionally, the capital insured by life and accident insurance at 31 December 2025 of this group amounts to EUR 78 million (EUR 83 million at 31 December 2024). #### h) Post-employment benefits to former Directors #### and former senior executive vice presidents The post-employment benefits and settlements paid in 2025 to former directors of the Bank, other than those detailed in note 5.c amounted to EUR 5.6 million and EUR 5.6 million in 2024, respectively. Also, the post- employment benefits and settlements paid in 2025 to former executive vice presidents amounted to EUR 16 million and EUR 12.7 million   in 2024, respectively. Contributions to insurance policies that hedge pensions to previous members of the Bank’s board of directors, amounted to EUR 0.17 million in 2025 (EUR 0.17 million in 2024). Likewise, contributions to insurance policies that hedge pensions for previous senior managers amounted to EUR 1.3 million in 2025 (EUR 2.3 million in 2024). No releases or charges were recorded in the consolidated income statement for pension commitments and similar obligations held by the Group with previous former members of the bank's board of directors or former members of senior management in 2025 and 2024. In addition, 'Provisions - Pension Fund and similar obligations' in the consolidated balance sheet as at 31 December 2025 included EUR 43 million in respect of the post-employment benefit obligations to former Directors of the Bank (EUR 46 million at 31 December 2024) and EUR 108 million corresponding to former members of senior management (EUR 96 million at 31 December 2024). #### i) Pre-retirement and retirement The board of directors approved an amendment to the contracts of executive directors whereby they ceased to have the right to pre-retire in case of termination of his contract. #### j) Contract termination The executive directors and members of senior management have indefinite-term employment contracts. Executive directors or senior managers whose contracts are terminated voluntarily or due to breach of duties are not entitled to receive any economic compensation. If Banco Santander terminates the contract for any other reason, they will be entitled to the corresponding legally-stipulated termination benefit, without prejudice to any compensation that may  for non-competition obligations, as detailed in the directors' remuneration policy. If Banco Santander were to terminate her contract, Ana Botín would have to remain at Banco Santander’s disposal for a period of 4 months in order to ensure an adequate transition, and would receive her fixed salary during that period. #### k) Information on investments held by the directors #### in other companies and conflicts of interest None of the members of the board of directors have declared that they or persons related to them may have a direct or indirect conflict of interest with the interests of Banco Santander, S.A., as set forth in article 229 of the Corporate Enterprises Act. 77 6. Loans and advances to central banks and credit institutions The detail by classification, type and currency, of loans and advances to central banks and credit institutions in the balance sheet is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | CENTRAL BANKS | | | | Classification | | | | Financial assets held for trading | 657 | 1,239 | | Financial assets at amortised cost | 223 | 218 | | | 880 | 1,457 | | Type | | | | Reverse repurchase agreements | 657 | 1,239 | | Other term loans | 153 | 177 | | Advances different from loans | 70 | 41 | | Of which, impaired assets | — | — | | Of which, valuation adjustments for impairment | — | — | | | 880 | 1,457 | | Currency | | | | Euro | 412 | 1,385 | | US Dollars | 468 | 72 | | | 880 | 1,457 | | CREDIT INSTITUTIONS | | | | Classification | | | | Financial assets held for trading | 26,349 | 23,428 | | Financial assets designated at fair value through profit or loss | 557 | 580 | | Financial assets designated at fair value through other comprehensive income | 839 | 32 | | Financial assets at amortized cost | 40,882 | 34,711 | | | 68,627 | 58,751 | | Type | | | | Reverse repurchase agreements | 43,210 | 39,238 | | Other term loans | 15,711 | 9,509 | | Non-loans advances | 9,706 | 10,004 | | Of which, impaired assets | — | — | | Of which, valuation adjustments for impairment | (2) | (1) | | | 68,627 | 58,751 | | Currency | | | | Euro | 47,146 | 41,951 | | Pound sterling | 1,768 | 1,618 | | US dollar | 17,580 | 14,480 | | Chilean pesos | — | 7 | | Mexican pesos | 1,127 | — | | Swiss francs | 505 | — | | Other currencies | 501 | 695 | | | 68,627 | 58,751 | | TOTAL | 69,507 | 60,208 | 78 The loans and advances classified in the “Financial assets held for trading” portfolio correspond, mainly, to temporary acquisitions of assets from Spanish and foreign institutions. Deposits in credit institutions classified as "Financial assets at amortized cost" are mainly term accounts and guarantees given in cash to credit institutions. In addition, at 31 December 2025, there were outstanding balances with central banks and credit institutions of EUR 72,163 million and EUR 1,345 million, respectively (EUR 94,612 million and EUR 1,526 million at 31 December 2024). These balances are included under 'Cash, cash balances at central banks and other deposits on demand'. Note 49 shows the details of the maturity terms of "Financial assets at amortized cost" and "Cash, cash balances at central banks and other deposits on demand". The breakdown at 31 December 2025 of the exposure and the provision fund for financial assets subject to impaired is EUR 41,946 million and EUR 2 million, respectively, all in Phase 1 (EUR 34,963 million and EUR 1 million, also Phase 1, in 2024). 7. Debt securities The detail, by classification, sector and currency, of ‘Debt instruments’ in the accompanying balance sheets is as follows: | | | | | --- | --- | --- | | | | | | EUR millon | | | | | 2025 | 2024 | | Classification | | | | Financial assets held for trading | 55,736 | 43,315 | | Non-trading financial assets mandatorily at fair value through profit or loss | 42 | 204 | | Financial assets designated at fair value through other comprehensive income | 5,349 | 8,873 | | Financial assets at amortized cost | 83,585 | 65,917 | | | 144,712 | 118,309 | | Sector | | | | Central banks | 3,037 | 2,500 | | Public sector | 103,733 | 77,927 | | Credit institutions | 17,465 | 18,781 | | Other financial institutions | 17,886 | 17,073 | | Non-financial institutions | 2,591 | 2,028 | | Of which, impaired assets | — | 164 | | Of which, value adjustments for impairment | (29) | (129) | | | 144,712 | 118,309 | | Currency | | | | Euro | 113,002 | 94,190 | | US dollar | 15,546 | 10,944 | | Pound sterling | 7,791 | 8,905 | | Brazilian real | 3,886 | 1,584 | | Other currencies | 4,487 | 2,686 | | | 144,712 | 118,309 | The increase in the year of the debt securities portfolio under the heading  'Financial assets at fair value with changes in other comprehensive income' is mainly due to the increase in exposure to sovereign debt, as a result of greater activity in the markets business, both its own and for distribution to clients. At 31 December 2025, the nominal amount of the debt securities subject to own obligations, mostly as collateral for financing lines received by the Bank, amounts to EUR 61,963 million (EUR 35,603 million at 31 December 2024), of which EUR 15,001 million correspond to Spanish Public Debt (EUR 5,893 million at 31 December, 2024). 79 The breakdown at 31 December 2025 of the exposure, by stage of impairment, of assets subject to impairment is EUR 88,657 million in Stage 1, EUR 306 million in Stage 2 and there is no exposue in Stage 3. In 2024, it was EUR 74,704 million in Stage 1, EUR 51 million in Stage 2 and EUR 164 million in Stage 3. The breakdown at 31 December 2025 of the provision fund by stage of impairment of assets subject to impairment is EUR 26 million in Stage 1, EUR 3 million in Stage 2 and there is no exposure or provision fund in Stage 3. In 2024 it was EUR 9 million in Stage 1, EUR 2 million in Stage 2 and EUR 118 million in Stage 3. Note 25.e) shows the details of ‘Other comprehensive income‘ recognized in Equity for the  ‘Financial Assets designated at fair value through other comprehensive income‘. Note 49 contains details of the maturity periods of 'Debt securities' classified in the 'financial assets at fair value through other comprehensive income' and 'financial assets at amortized cost' portfolios. 8. Equity instruments #### a) Breakdown The detail, by classification and type, of Equity instruments in the accompanying balance sheets is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Classification | | | | Financial assets held for trading | 21,196 | 16,225 | | Non-trading financial assets mandatorily at fair value through profit or loss | 958 | 991 | | Financial assets designated at fair value through other comprehensive income | 1,283 | 1,245 | | | 23,437 | 18,461 | | Type | | | | Shares of Spanish companies | 4,623 | 3,682 | | Shares of foreign companies | 18,022 | 14,280 | | Shares of investments funds | 792 | 499 | | | 23,437 | 18,461 | Note 25.c) contains a detail of the ‘Other comprehensive income’, recognized in equity, on ‘Financial assets designated at fair value through other comprehensive income’. #### b) Changes The changes in ‘Non-trading financial assets mandatorily at fair value through profit or loss’ and ‘Financial assets at fair value through other comprehensive income’ duri ng 2025 and 2024 were as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Balance at beginning of the year | 1,245 | 983 | | Purchases and capital increases | 15 | 3 | | Disposals and capital reductions | (3) | (2) | | Other comprehensive income and other conceptsA | 26 | 261 | | Balance at end of the year | 1,283 | 1,245 | A. In 2024 there were significant changes in value due, among others, to the increase in the prices of listed companies included in this heading. The main changes in fair value recognised in Other Comprehensive Income relate to the change in value of Bank of Shanghai Co. Ltd. (increase of EUR 19 million and EUR 414 million in 2025 and 2024 respectively) and the decrease in the fair value of the stake in Project Quasar Investments 2017, S.L. in 2024, by EUR 155 million. #### c) Notifications of acquisitions of investments The notifications of the acquisitions and disposals of holdings in investees made by the Bank in 2025 , in compliance with Article 155 of the Spanish Limited Liability Companies Law and Article 105 of Spanish Securities Market Law 24/1998, are listed in appendix IV. 9. Trading Derivatives (assets #### and liabilities) and short #### positions #### a) Trading derivatives The detail, by type of inherent risk, of the fair value of the trading derivatives arranged by Banco Santander at 31 December 2025 and 2024 is as follows: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR million | | | | | | | 2025 | | 2024 | | | | Debit balance | Credit balance | Debit balance | Credit balance | | Interest rate | 28,296 | 20,294 | 30,265 | 23,347 | | Equity instruments | 1,699 | 2,021 | 1,473 | 1,482 | | Currency and gold | 15,203 | 14,382 | 19,476 | 19,647 | | Credit | 1,378 | 4,701 | 1,124 | 1,447 | | Commodities | — | — | 98 | 97 | | Others | 7 | 126 | 26 | 101 | | Total | 46,583 | 41,524 | 52,462 | 46,121 | 80 #### b) Short positions The following is a breakdown of short positions (liabilities): | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Borrowed Securities | | | | Equity instruments | 429 | 358 | | Representative values of debt | 1,555 | 1,347 | | Short sales | | | | Debt instruments | 28,710 | 23,813 | | Total | 30,694 | 25,518 | 10. Loans and advances to #### customers #### a) Detail The detail, by classification, of ‘Loans and advances to customers’ on the balance sheets is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Financial assets held for trading | 31,423 | 23,756 | | Non-trading financial assets mandatorily at fair value through profit or loss | 923 | 932 | | Financial assets designated at fair value through profit or loss | 4,341 | 4,246 | | Financial assets at fair value through other comprehensive income | 8,249 | 5,162 | | Financial assets at amortized cost | 309,739 | 291,597 | | Loans and advances to customers (carrying amount) | 354,675 | 325,693 | | Of which | | | | Impairment losses | (3,188) | (3,959) | | Cumulative negative changes in fair value due to credit risk from doubtful exposures | (5) | (24) | | Loans and advances to customers (gross amount) | 357,868 | 329,676 | ‘Note 49 shows the details of the maturity periods of financial assets at amortized cost.’ At 31 December 2025 and 2024, there were no loans and advances to customers for material amounts without fixed maturity dates. #### b) Breakdown The following is a breakdown of the loans and advances granted to Banco Santander´s customers, which, reflect the bank´s exposure to credit task in it´s main activity without considering the balance of impairment losses taking into account the type and situation of the transactions, the geographical area of their residence and type of interest rate on the transactions: 81 | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Loan type and status | | | | On demand and with a short prior period | 157 | 188 | | Credit cards receivables | 1,796 | 1,492 | | Commercial credit | 31,502 | 32,105 | | Finance leases | 2,934 | 2,918 | | Reverse repurchase agreements | 52,789 | 40,348 | | Other term loans | 252,466 | 238,299 | | Non loans advances | 13,031 | 10,343 | | Of which | | | | Impaired assets | 5,228 | 7,052 | | Impairment losses | (3,188) | (3,959) | | Cumulative negative changes in fair value due to credit risk from doubtful exposures | (5) | (24) | | Book value | 354,675 | 325,693 | | Gross book value | 357,868 | 329,676 | | Geographical area | | | | Spain | 183,923 | 185,135 | | Europe | 57,478 | 54,934 | | of which United Kingdom | 17,339 | 17,108 | | America | 99,133 | 74,184 | | of which United States of America | 61,886 | 47,896 | | of which Brazil | 1,206 | 1,506 | | Rest of the world | 17,334 | 15,423 | | | 357,868 | 329,676 | | Interest rate: | | | | Fixed rate | 183,958 | 161,092 | | Floating rate | 173,910 | 168,584 | | | 357,868 | 329,676 | At 31 December 2025 and 2024 the Bank had EUR 17,387 million and EUR 15,837 million, respectively, of loans and advances granted to Spanish public administrations whose rating at 31 December 2025 is A (rating at 31 December 2024 was A) and with  EUR 6,715 million and EUR 4,719 million, respectively, granted to the Public Sector of other countries (at 31 December 2025 this amount was composed, based on the rating of the issuer as follows: 7% AAA, 38% AA, 7% A, 23% BBB and 25% lower than BBB). The above-mentioned ratings were obtained by converting the internal ratings awarded to customers by Banco Santander (see note 50) into the external ratings classification established by Standard & Poor's, in order to make them more readily comparable. Without considering Public Administrations, the amount of loans and advances at 31 December 2025 amounts to EUR 333,766 million, of which EUR 328,538 million are in a non-doubtful situation (at 31 December 2024, they amounted to EUR 309,120 million and EUR 302,068 million respectively). 82 The following is a detail, by activity, of the loans to customers at 31 December 2025, net of impairment losses: | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | EUR million | | | | | | | | | | | | Total A | Without collateral | Secured loans | | | | | | | | | Net exposure | | Loan-to-value ratioC | | | | | | | Of which, property collateral | Of which, other collateral | Less than or equal to 40% | More than 40% and less than or equal to 60% | More than 60% and less than or equal to 80% | More than 80% and less than or equal to 100% | More than 100% | | Public sector | 20,981 | 20,780 | 147 | 54 | 81 | 50 | 12 | 58 | — | | Other financial institutions and individual traders (business financial activity) | 107,891 | 50,658 | 1,283 | 55,950 | 579 | 752 | 326 | 55,324 | 252 | | Non-financial companies and individual entrepreneurs (non-financial business activity) (broken down by purpose) | 134,352 | 95,703 | 17,083 | 21,566 | 6,312 | 6,411 | 4,117 | 19,247 | 2,562 | | Of which | | | | | | | | | | | Construction and property development(including land) | 2,849 | 5 | 2,844 | — | 432 | 703 | 615 | 567 | 527 | | Civil engineering construction | 1,645 | 1,173 | 18 | 454 | 6 | 8 | 4 | 450 | 4 | | Large companies | 96,612 | 75,568 | 4,321 | 16,723 | 1,357 | 1,943 | 1,322 | 14,991 | 1,431 | | SMEs and individual traders | 33,246 | 18,957 | 9,900 | 4,389 | 4,517 | 3,757 | 2,176 | 3,239 | 600 | | Other households (broken down by purpose) | 78,421 | 13,506 | 63,559 | 1,356 | 19,133 | 21,902 | 19,827 | 3,311 | 742 | | Of which | | | | | | | | | | | Residential | 60,863 | 812 | 59,938 | 113 | 17,612 | 20,424 | 18,726 | 2,780 | 509 | | Consumer loans | 10,794 | 10,185 | 223 | 386 | 129 | 107 | 263 | 94 | 16 | | Other purposes | 6,764 | 2,509 | 3,398 | 857 | 1,392 | 1,371 | 838 | 437 | 217 | | Total A | 341,645 | 180,647 | 82,072 | 78,926 | 26,105 | 29,115 | 24,282 | 77,940 | 3,556 | | Memorandum item | | | | | | | | | | | Refinanced and restructured transactionsB | 3,460 | 1,696 | 1,265 | 499 | 540 | 379 | 208 | 504 | 133 | A.Not including advances that are not loans. B.Includes the net balance of value adjustments associated with impaired assets. C.The ratio is the carrying amount of the transactions at 31 December 2025 calculated using  the latest available appraisal value of the collateral. 83 Note 50 contains information relating to the forborne loan portfolio. Below is a breakdown of the movement in gross exposure by impairment stage of loans and advances from customers recorded under the headings ‘Financial assets at amortized cost’ and ‘Financial assets at fair value through other comprehensive income’ under Bank of Spain Circular 4/2017 to 31 December 2025 and 2024: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | 2025 | | | | | | EUR million | | | | | | | Stage 1 | Stage 2 | Stage 3A | Total | | Balance at beginning of the year | 276,440 | 17,226 | 7,052 | 300,718 | | Movements | | | | | | Transfers | | | | | | Transfer to Stage 2 from Stage 1 | (5,410) | 5,410 | | — | | Transfer to Stage 3 from Stage 1 | (1,216) | | 1,216 | — | | Transfer to Stage 3 from Stage 2 | | (731) | 731 | — | | Transfer to Stage 1 from Stage 2 | 2,576 | (2,576) | | — | | Transfer to Stage 2 from Stage 3 | | 246 | (246) | — | | Transfer to Stage 1 from Stage 3 | 108 | | (108) | — | | Net changes on financial assets | 26,484 | (2,609) | (971) | 22,904 | | Write-offs | — | — | (2,446) | (2,446) | | Differences in change and other movements | — | — | — | — | | Balance at end of the year | 298,982 | 16,966 | 5,228 | 321,176 | A. The movement of Stage 3 includes portfolio sales for EUR 555 million. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | 2024 | | | | | | EUR million | | | | | | | Stage 1 | Stage 2 | Stage 3A | Total | | Balance at the beginning of year | 272,599 | 15,703 | 7,597 | 295,899 | | Movements | | | | | | Transfers | | | | | | To stage 2 from stage 1 | (7,994) | 7,994 | | — | | To stage 3 from stage 1 | (848) | | 848 | — | | To stage 3 from stage 2 | | (1,616) | 1,616 | — | | To stage 1 from stage 2 | 3,928 | (3,928) | | — | | To stage 2 from stage 3 | | 471 | (471) | — | | To stage 1 from stage 3 | 10 | | (10) | — | | Net changes on financial assets | 8,745 | (1,398) | (1,143) | 6,204 | | Write-offs | — | — | (1,385) | (1,385) | | Differences in change and other movements | — | — | — | — | | Balance at end of the year | 276,440 | 17,226 | 7,052 | 300,718 | A. The movement of Phase 3 includes portfolio sales for EUR 952 million. At 31 December 2025, the total net exposure of loans and advances to the Bank's customers is EUR 317,988 million, of which EUR 298,561 million correspond to phase 1, EUR 16,381 million to phase 2 and EUR 3,046 million to phase 3 (EUR 296,760 million, EUR 276,057 million, EUR 16,635 million and EUR 4,067 million respectively at 31 December, 2024). This exposure includes EUR 15 million (EUR 31 million at 31 December 2024) in impaired assets purchased with impairment, classified in phase 3, which correspond mainly to the business combination carried out by the Bank. 84 c) Impairment losses on loans and advances to customers at amortized cost and at fair value through other comprehensive income The changes in the impairment losses on the assets making up the balances of financial assets at amortized cost and at fair value through other comprehensive income ‘Loans and advances to customers ’: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Balance at beginning of the year | 3,959 | 3,982 | | Net impairment losses charged to income for the year | 1,435 | 1,445 | | Of which | | | | Impairment losses charged to profit or loss | 2,622 | 2,764 | | Impairment losses reversed with a credit to profit or loss | (1,187) | (1,319) | | Write-off of impaired balances against recorded impairment allowance | (2,446) | (1,385) | | Exchange differences and other changes | 240 | (83) | | Balance at end of the year | 3,188 | 3,959 | | Of which | | | | By status of the asset | | | | Impaired assets | 2,182 | 2,985 | | Of which, due to country risk | — | 8 | | Other assets | 1,006 | 966 | | Balance at end of the year | 3,188 | 3,959 | | Of which | | | | Individually calculated | 705 | 783 | | Collective calculated | 2,483 | 3,176 | The net provision that has an impact on the results for the year includes provisions for renegotiation or contractual modification of EUR 14 million (EUR 21 million at 31 December 2024). Taking into account the assets in suspense recovered, which amount to EUR 174 million at 31 December, 2025 (EUR 95 million at 31 December, 2024) and adding to the net provision of the previous table, the impairment of 'Credit Entities  and Debt Securities' (see notes 6 and 7), the amount recorded under the heading 'Impairment or reversal of impairment of financial assets not measured at fair value through profit or loss and net gains or losses' , due to changes in 'Financial assets at fair value with changes in other comprehensive income' and 'Financial assets at amortized cost', amounts to EUR 1,162 million at 31 December, 2025 (EUR 1,334 million at 31 December, 2024). The following is the movement of impairment losses broken down by impairment stage of loans and advances to customers, during 2025 and 2024: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | 2025 | | | | | | EUR million | | | | | | | Stage 1 | Stage 2 | Stage 3 | Total | | Balance at beginning of the year | 383 | 591 | 2,985 | 3,959 | | Transfers | | | | | | Transfer to Stage 2 from Stage 1 | (105) | 265 | | 160 | | Transfer to Stage 3 from Stage 1 | (7) | | 262 | 255 | | Transfer to Stage 3 from Stage 2 | | (54) | 191 | 137 | | Transfer to Stage 1 from Stage 2 | 7 | (83) | | (76) | | Transfer to Stage 2 from Stage 3 | | 31 | (80) | (49) | | Transfer to Stage 1 from Stage 3 | — | | (10) | (10) | | Net changes of the exposure and modifications in the credit risk | 142 | (165) | 1,041 | 1,018 | | Changes due to update in the methodology of estimates of the entity | | | | | | Write-offs | — | — | (2,446) | (2,446) | | FX and other movements | 1 | — | 239 | 240 | | Gross carrying amount at end of the year | 421 | 585 | 2,182 | 3,188 | 85 | | | | | | | --- | --- | --- | --- | --- | | | | | | | | 2024 | | | | | | EUR million | | | | | | | Stage 1 | Stage 2 | Stage 3 | Total | | Balance at beginning of the year | 397 | 625 | 2,960 | 3,982 | | Transfers | | | | | | Transfer to Stage 2 from Stage 1 | (124) | 191 | | 67 | | Transfer to Stage 3 from Stage 1 | (8) | | 318 | 310 | | Transfer to Stage 3 from Stage 2 | | (161) | 485 | 324 | | Transfer to Stage 1 from Stage 2 | 15 | (102) | | (87) | | Transfer to Stage 2 from Stage 3 | | 59 | (134) | (75) | | Transfer to Stage 1 from Stage 3 | 2 | | (9) | (7) | | Net changes of the exposure and modifications in the credit risk | 109 | (21) | 825 | 913 | | Changes due to update in the methodology of estimates of the entity | | | | | | Write-offs | — | — | (1,385) | (1,385) | | FX and other movements | (8) | — | (75) | (83) | | Gross carrying amount at end of the year | 383 | 591 | 2,985 | 3,959 | #### d) Impaired assets The detail of the movement in the balance of financial assets classified as ‘ Loans and advances to customers ’ and considered to be impaired by reason of their credit risk during 2025 and 2024 is: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Balance at beginning of the year | 7,052 | 7,597 | | Net additions | 622 | 840 | | Written-off assets | (2,446) | (1,385) | | Other changes | — | — | | Balance at end of the year | 5,228 | 7,052 | This amount, once the corresponding provisions have been deducted, is Banco Santander´s best estimate of the discounted value of the  cashflows that are expected to be recovered from impaired assets. At 31 December 2025, the balance of the assets written- off amounted to EUR 6,333 million (6,043 millon EUR at 31 of december 2024). The following are the credit impaired financial assets and related guarantees maintained to mitigate potential losses as of 31 December, 2025: | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | Gross amount | Allowance recognized | Estimated collateral value A | | Without associated real collateral | 2,775 | 1,198 | — | | With associated real collateral | 1,723 | 727 | 962 | | With other collateral | 730 | 257 | 282 | | Total | 5,228 | 2,182 | 1,244 | A. Collects the maximum value of the collateral associated with each loan, limited to the net carrying amount. Consequently, it does not include any other cash flow that could be obtained, such as those from the personal guarantees of the accredited. When classifying assets in the previous table, the main factors considered by Banco Santander to determine whether an asset has become impaired are the existence of amounts past due -assets impaired due to arrears- or other circumstances may be arise which will not result in all contractual cash flow being recovered, such as a deterioration of the borrower's financial situation, the worsening of its capacity to generate funds or difficulties experienced by it in accessing credit. e) #### Transferred credits The heading “Loans and advances to customers” includes, among other items, loans transferred to third parties through traditional securitisation for which the Group retains, in whole or in part, the associated risks and rewards. Consequently, and in accordance with the applicable accounting standards, these loans cannot be derecognised from the balance sheet. They mainly comprise mortgage loans, corporate loans and consumer loans. The breakdown of securitised loans recognised on the balance sheet, by type of underlying financial instrument, is set out below: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Retained on the balance sheet A | 11,579 | 12,250 | | Of which, mortgage assets are securitized through: | | | | Mortgage transfer certificates | 5,765 | 7,277 | | Total A | 11,579 | 12,250 | A. Note 19 reports the liabilities associated with securitization operations, discounting the bonds of the securitization funds repurchased by the Bank. 86 The evolution of this activity responds to its use as a regulatory capital management tool and as a resource for the diversification of Banco Santander's liquidity sources. During 2025 and 2024 the Bank didn't derecognized any of the securitizations carried out in years mentioned before, and the balance derecognized at those dates corresponds to securitizations carried out in previous years and portfolio sales. On the other hand, at 31 December 2025, Banco Santander has credits derecognized from the balance sheet and on which the administration maintains for an amount of EUR 4,742 million. (EUR 4,000 millon at 31 December 2024). Within the total loans written off the balance sheet, at 31  December 2025, there are EUR 427 million (EUR 497 million in 2024) of securitized assets. 11. Trading derivatives The detail of the notional and/or contractual amounts and the market values of the trading derivatives held by the Bank in 2025 and 2024 is as follows: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR million | | | | | | | 2025 | | 2024 | | | | Notional value | Market value | Notional value | Market value | | Held for trading: | | | | | | Interest rate | 8,680,921 | 8,002 | 8,170,664 | 6,918 | | Options | 200,197 | (233) | 201,120 | (361) | | Other | 8,480,724 | 8,235 | 7,969,544 | 7,279 | | Equity instruments | 73,309 | (322) | 61,185 | (9) | | Options | 49,001 | (871) | 44,286 | (805) | | Other | 24,308 | 549 | 16,899 | 796 | | Currency and gold | 1,216,133 | 821 | 1,093,647 | (171) | | Options | 102,284 | 75 | 115,216 | 337 | | Other | 1,113,849 | 746 | 978,431 | (508) | | Credit | 74,407 | (3,323) | 46,923 | (323) | | Hedging default derivative and total through out | 74,407 | (3,323) | 46,923 | (323) | | Securities and commodities derivatives and other | 4,916 | (119) | 5,288 | (74) | | Total | 10,049,686 | 5,059 | 9,377,707 | 6,341 | 87 12. Non-current assets and #### liabilities held for sale The detail of non-current assets held for sale in the balance sheets is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Foreclosed assets | 146 | 237 | | Other assets leased out under an operating lease | 127 | 29 | | Investments - Subsidiaries, Joint venture and Associated entities A | 4,222 | — | | Total | 4,495 | 266 | A. Transfer to non-current assets held for sale from the stake in Santander Bank Polska following the agreement for its sale (see note 3). At 31 December 2025, reducing the balance of this heading (excluding investments in subsidiaries, joint venture and associated entities), there were EUR 358 million corresponding to value adjustments due to impairment of those assets, which entails a coverage of 57% of them (EUR 365 million, with a coverage of 58%, in the 2024 financial year) of which EUR 38 million have been recorded during the 2025 financial year (EUR 61 million in the 2024 financial year) under the heading 'Gains or losses from non-current assets and groups disposal of items classified as held for sale not eligible as discontinued operations' (see note 46). At 31 December 2025 there are no liabilities associated in disposable groups of items that have been classified as held for sale associated with other 'non-current assets and alienable groups of items that have been classified as held for sale'. 13. Investments a) Subsidiaries ‘Investments - Subsidiaries’ includes the equity instruments owned by Banco Santander and issued by subsidiaries belonging to Grupo Santander. Relevant information on these companies is provided in Appendix I. i. Breakdown The detail, by currency and listing status, of ‘Investments - Subsidiaries’ on the balance sheets at 31 December 2025 and 2024 is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Currency: | | | | Euro | 54,596 | 53,197 | | Pound Sterling | 15,708 | 14,338 | | Other currencies | 25,763 | 30,139 | | | 96,067 | 97,674 | | Listing status: | | | | ListedA | 6 | 4,275 | | Unlisted | 96,061 | 93,399 | | | 96,067 | 97,674 | A. Transfer to non-current assets held for sale from the stake in Santander Bank Polska following the agreement for its sale (see note 3). ii. Changes The changes in 2025 and 2024 in ‘Investments - Subsidiaries’, disregarding impairment losses, were as follows: 88 | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Balance at beginning of the year | 109,911 | 109,567 | | Acquisitions, contributions, capital increase payments and mergers | 9,218 | 4,554 | | Of which | | | | Banco Santander Totta, S.A. | 4,949 | — | | Contingent convertible debt (AT1) | 1,073 | 782 | | Santander Insurance Services UK Limited | 780 | — | | Tresmares Santander Direct Lending, SICC, S.A. | 678 | 174 | | Deva Capital Holding Company, S.L. Unipersonal | 391 | 254 | | Andromeda Principal Investment, S.L.U. | 250 | — | | Santander Global Technology and Operations, S.L. Unipersonal | 230 | — | | Santander Consumer Bank, S.A. | 166 | — | | Santander Asset Finance Opportunities Sub-Fund | 104 | 20 | | PagoNxt, S.L. | 97 | 170 | | Santander Group Properties, S.L. Unipersonal | 52 | 1,062 | | Banco Santander International SA | — | 517 | | Blue Ocean SBT, S.L. Unipersonal (anteriormente Santander Bank & Trust, LTD) | — | 389 | | Moon GC&P Investments, S.L.U. | — | 300 | | Cántabro Catalana de Inversiones, S.A. | — | 263 | | Grupo Financiero Santander México, S.A. de C.V. | — | 110 | | Disposals, capital reductions and mergers | (7,698) | (3,880) | | Of which | | | | Santander Totta, SGPS, S.A. | 4,949 | — | | Contingent convertible debt (AT1) | 603 | — | | Tresmares Santander Direct Lending, SICC, S.A. | 469 | — | | Investment Holdings 1857, S.L. | 333 | — | | Santander Insurance, S.L. | 247 | 443 | | SAM Investment Holdings, S.L. | 233 | — | | Blecno Investment, S.L. Unipersonal | 209 | — | | Uro Property Holdings, S.A. | 179 | — | | Andromeda Principal Investment, S.L.U. | 178 | — | | Parasant SA | — | 1,012 | | Santander Global Services, S.L. | — | 570 | | Santander Facility Management España, S.L.U. | — | 393 | | Santander Bank Polska S.A. | — | 357 | | Cántabra de Inversiones, S.A. Unipersonal | — | 263 | | Consulteam Consultores de Gestão, Unipessoal, Lda. | — | 209 | | Moon GC&P Investments, S.L.U. | — | 209 | | Santander UK Investments | — | 119 | | Transfers | (4,235) | — | | FX and other movements | (756) | (330) | | Balance at end of the year | 106,440 | 109,911 | 89 In February 2025, a corporate reorganisation was carried out in Portugal aimed at simplifying the Group’s structure, through the reverse merger by absorption of Santander Totta, SGPS, S.A. by Banco Santander Totta, S.A. The cost of the investment in Banco Santander amounted to EUR 4,949 million. In February 2025, the purchase and sale of the company Santander Consumer Bank, S.A. (formerly called Crediscotia Financiera, S.A.) was completed for an amount in Peruvian soles equivalent to EUR 166 million. In August 2025, a participating loan was granted to Santander Insurance Services UK Limited for GBP 677 million (EUR 776 million). In September, the loan, together with accrued interest, was capitalised for GBP 680 million (EUR 780 million). During financial year 2025, contributions were made to Tresmares Santander Direct Lending, SICC, S.A. for a total amount of EUR 678 million, corresponding to the various capital calls made throughout the year. The company also made distributions amounting to EUR 469 million. In addition, during the year, contributions were made to Andromeda Principal Investment, S.L.U. for a total amount of EUR 250 million, corresponding to the various capital calls made throughout the year. The company also made distributions amounting to EUR 178 million. On January 28, 2026, the deed of merger by absorption of Blecno Investment, S.L. Unipersonal, Uro Property Holdings, S.A., Elevate Tech Platforms, S.L. Unipersonal and Emisora Santander España, S.A. Unipersonal (acquired companies) by Banco Santander, S.A. (acquiring company) was executed as a public deed. The net amount derecognised under this heading as a result of the transaction was EUR 394 million, with a reserve payment of EUR 196 million (see Note 1.i). Throughout financial year 2025, Banco Santander subscribed capital increases and made partner contributions in other companies, the most significant being: EUR 391 million in Deva Capital Holding Company, S.L. Unipersonal, EUR 230 million in Santander Global Technology and Operations, S.L. Unipersonal, EUR 104 million in Santander Asset Finance Opportunities, Sub-Fund, EUR 97 million in PagoNxt, S.L., and EUR 52 million in Santander Group Properties, S.L. Unipersonal. Additionally, the most significant premium refunds being: EUR 333 million of Investment Holdings 1857, S.L., EUR 247 million of Santander Insurance, S.L. and EUR 233 million of SAM Investment Holdings, S.L. In December 2025, Banco Santander, S.A. sold 3.5% of its stake in Santander Bank Polska S.A. for an amount of EUR 407 million. This resulted in a reduction in the cost of the investment of EUR 241 million and a net gain of EUR 166 million, recognised under the heading “Profit or (-) loss after tax from discontinued operations”. The “Transfers” item in the above breakdown includes EUR 4,440 million corresponding to the stakes in Santander Bank Polska S.A. and Santander Towarzystwo Funduszy Inwestycyjnych, S.A., which were reclassified under the heading “Non-current assets and disposal groups classified as held for sale” (see Note 12), and EUR 205 million corresponding to stakes in the venture capital companies Tresmares Growth Fund, which were reclassified from the heading “Non-trading financial assets mandatorily measured at fair value through profit or loss”. In February 2024, members of the company MOON GC&P Investments, S.L.U were bought and contributed for an amount of EUR 300 million, with the aim of acquiring an indirect majority stake in Adprotel Strand (hotel investment). Throughout the year, the company has made a premium refund of EUR 209 million. In March 2024, as part of the reorganization process of several companies of the Santander Group, the holding company called Santander Group Properties, S.L.U. Was established, which will act as the head entity of the real estate companies that own the Group’s corporate buildings. In addition, 26 March 2024 the Bank made a capital increase in the company from non-cash contributions consisting of the participation of the company Santander Facility Management España, S.L.U, amounting to EUR 413 million. The reduction of the participation was made for the amount of EUR 393 million and there has been a payment in reserves for the amount of EUR 19 million (see note 29). With the same date, a capital increase of the same characteristics was made, consisting of the contribution of its participation in Santander Global Services, S.L. Unipersonal, amounting to EUR 373 million. The reduction of the participation was made for EUR 550 million (since previously the company made a refund of EUR 20 million) and there has been a use of the impairment fund of EUR 178 million (see note 13.a.iii). On July 16, 2024 the Bank made another capital increase in this company of the same characteristics, consisting of the contribution of the participation in Santander UK Investments amounting to EUR 114 million. The reduction of the participation has been made by the value in euros at the date of the contribution of GBP 100 million. On October 22,  2024 a contribution of partners was made, in kind, consisting of the participation of Santander Global Sport, S.A, amounting to EUR 15 million. The reduction of the portfolio has been made in the amount of EUR 42 million, which has meant a release of the impairment fund of EUR 27 million (see note 13.a.iii). In addition, the Bank has also made a monetary contribution to this company amounting to EUR 147 million. 90 The 11 July 2024 signed the merger by absorption of Cántabro Catalana de Inversiones, S.A. (acquiring company) and Cántabra de Inversiones, S.A. Unipersonal (acquired company), with the dissolution without liquidation of the company acquired and the transfer of its assets in block to the acquiring company, As part of the process of streamlining the corporate structure within the Group, with the aim of simplifying its management, facilitating the efficient allocation of resources and reducing administrative costs. In September 2024, Banco Santander, S.A sold 5.21% of its stake in Santander Bank Polska S.A for an amount of EUR 575 million. This has resulted in a reduction in the cost of participation of EUR 357 million and a net profit of EUR 209 million (see note 45). On December 4, 2024 raised to the public the deed of merger by cross-border non-European absorption of the companies SIB Besaya, S.L.U. and Parasant SA (companies acquired) by Banco Santander, S.A. (Acquiring company), including among other assets, the companies Banco Santander International SA, Santander Bank & Trust Ltd, Santander Investments Chile Limitada and Santander Inversiones, S.A., the net amount registered under this heading for this operation was EUR 1,065 million, with a reserve payment of EUR 166 million (see note 1). In December 2024, carried out the liquidation of the company Consulteam Consultores de Gestão, Unipessoal, Lda. for an amount of EUR 209 million, which has meant a use of the fund endowed with the same amount (see Note 13.a.iii). Throughout 2024, Banco Santander subscribed capital increases and made contributions from partners in other companies, the most relevant being: EUR 254 million in Deva Capital Holding Company, S.L. Unipersonal, EUR 110 million in Grupo Financiero Santander México, S.A. de C.V., 174 million in Tresmares Santander Direct Lending, SICC, S.A. and EUR 170 million in PagoNxt, S.L (of which EUR 48 million is contribution in kind). Additionally, the company Santander Insurance, S.L. made premium refunds of EUR 443 million. iii. Impairment losses The changes in the balance of this item were as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Balance at beginning of the year | 12,237 | 12,423 | | Net impairment losses (reversals) (note 44) | (1,548) | 171 | | Other changes | (316) | (357) | | Balance at end of the year | 10,373 | 12,237 | The Management carries out an analysis of the potential loss of value of the investments in subsidiaries, joint ventures and associates that it has registered with respect to their book value. Said analysis is carried out using different parameters, such as equity value, listed value and recoverable value, which is obtained from estimates of expected cash flows or net worth corrected by tacit capital gains existing on the date of the valuation. In line with the above, Banco Santander carried out an assessment of its investees in December 2025. The impairment reversals recognised by the Bank during financial year 2025 include EUR 1,335 million in relation to Santander UK Group Holdings Plc. and EUR 537 million in relation to PagoNxt, S.L. The “Other movements” balance in the above breakdown includes EUR 161 million corresponding to Santander Towarzystwo Funduszy Inwestycyjnych S.A., reclassified under the heading “Non-current assets and disposal groups classified as held for sale” (see Note 12); EUR 37 million corresponding to Munduspar Participações, reclassified under the heading “Associates” (see Note 13.c); and EUR 116 million corresponding to the companies merged with the Bank (see Note 1.i). Following the same criteria, Banco Santander carried out in December 2024 the evaluation of its investees. The impairment charges made by the Bank in 2024 included EUR 94 million from Altamira Santander Real Estate, S.A and EUR 70 million from Uro Properties Holdings, S.A. b) Joint venture entities The cost of the investees recorded under this Caption at December 31, 2025 amounted to EUR 651 million, while the impairment recorded at that date was EUR 368 million (EUR 640 million and EUR 318 million, respectively, in 2024). In October 2024, UCI, S.A. approved a capital increase through the contribution of perpetual subordinated obligations contingently convertible into shares, corresponding to Banco Santander EUR 41 million. 91 During 2025, Banco Santander has provided impairment for a net amount of EUR 49 million (EUR 55 million in 2024) for the entities recorded under this caption, mainly for UCI, S.A. c) Associated entities ‘Investments - Associated’ in the accompanying balance sheets includes Banco Santander`s ownership interests in associates (see note 2.b). Appendix II contains a detail of these companies, indicating the percentages of direct or indirect ownership and other relevant information. At 31 December 2025 , there were no capital increases in progress at any associated company. i. Breakdown The detail of the balance of this heading of the attached balances, based on the contracting currency and the admission or non-listing of the securities, is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Currency: | | | | Euro | 1,950 | 2,049 | | Foreign Currency | 16 | — | | | 1,966 | 2,049 | | Listing status: | | | | Listed | 1,905 | 1,988 | | Unlisted | 61 | 61 | | | 1,966 | 2,049 | ii. Changes The changes in 2025 and 2024 in ‘Investments - Associates’’, disregarding impairment losses, were as follows, (see note 13.c.iii): | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Balance at the beginning of the year | 2,333 | 2,134 | | Purchases, capital increases and mergers | 75 | 246 | | Of which | | | | Waycarbon Soluções Ambientais e Projetos de Carbono, S.A. | 75 | — | | Merlín Properties, SOCIMI, S.A. | — | 231 | | Disposals, reductions and mergers: | (167) | (47) | | Of which | | | | Metrovacesa, S.A. | (104) | (47) | | Waycarbon Soluções Ambientais e Projetos de Carbono, S.A. | (40) | — | | Merlín Properties, SOCIMI, S.A. | (23) | — | | Transfers | — | — | | Other changes (net) | — | — | | Balance at end of the year | 2,241 | 2,333 | In May 2025, the reverse merger of Munduspar Participações, S.A. (subsidiary) into Waycarbon Soluções Ambientais e Projetos de Carbono, S.A. was completed. The cost of the investment held by the Bank amounted to EUR 75 million. As a result of this merger and a subsequent capital reduction by the company with reimbursement to the Bank for an amount of EUR 40 million, the Bank ceased to exercise control over the company, which was reclassified as an associate. In April and December 2025, Metrovacesa, S.A. made two dividend distributions charged against the freely distributable reserve (share premium), with Banco Santander receiving two payments of EUR 22 million and EUR 54 million, respectively. These transactions resulted in a reduction in the cost of the investment of EUR 104 million and the recognition of an impairment charge of EUR 28 million (see Note 13.c.iii). In July 2024, the Board of Directors of Merlin Properties, SOCIMI, S.A. approved a share capital increase through cash contributions, as part of an accelerated bookbuilding process. Banco Santander subscribed shares for an amount of EUR 226 million. In April and December 2024, Metrovacesa, S.A. made two dividend distributions charged against the freely distributable reserve (share premium), with Banco Santander receiving two payments of EUR 17 million and EUR 16 million, respectively. These transactions resulted in a reduction in the cost of the investment of EUR 47 million and the recognition of an impairment charge of EUR 13 million (see Note 13.c.iii). iii. Impairment losses The changes in the balance of this item were as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Balance at the beginning of the year | 284 | 286 | | Net impairment losses (reversals) (note 44) | 1 | 11 | | Other changes | (10) | (13) | | Balance at end of the year | 275 | 284 | 92 14. Insurance contracts linked to #### pensions The detail of Insurance contracts linked to pensions in the balance sheets are as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Assets relating to insurance contracts covering post-employment benefit plan obligations (notes 17 and 23) | 240 | 267 | | Total | 240 | 267 | 15. Tangible assets a) Changes The changes in 2025 and 2024 in ‘Tangible assets’ in the balance sheet were as follows: | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | EUR million | | | | | | | | | | | Tangible assets | | | | Of which: For leasing | | | | | | For own use | Leased out under an operating lease | Investment property | Total | For own use | Leased out under an operating lease | Investment property | Total | | Cost | | | | | | | | | | Opening balance at 1 January 2024 | 7,097 | 1,208 | 343 | 8,648 | 3,196 | — | — | 3,196 | | Additions/disposals (net) | (2) | 3 | — | 1 | (147) | — | — | (147) | | Transfers and other | (201) | — | (45) | (246) | 83 | — | — | 83 | | Balance at 31 December 2024 | 6,894 | 1,211 | 298 | 8,403 | 3,132 | — | — | 3,132 | | Additions/disposals (net) | (1,948) | (11) | — | (1,959) | (2,053) | — | — | (2,053) | | Transfers and others | 1,418 | — | 258 | 1,676 | 58 | — | — | 58 | | Balance at 31 December 2025 | 6,364 | 1,200 | 556 | 8,120 | 1,137 | — | — | 1,137 | | Accumulated depreciation | | | | | | | | | | Opening balance at 1 January 2024 | (1,778) | (302) | (38) | (2,118) | (950) | — | — | (950) | | Charge for the year | (362) | (138) | (2) | (502) | (209) | — | — | (209) | | Disposals | 194 | 131 | — | 325 | 193 | — | — | 193 | | Transfers and others | 260 | — | 2 | 262 | — | — | — | — | | Balance at 31 December 2024 | (1,686) | (309) | (38) | (2,033) | (966) | — | — | (966) | | Charge for the year | (276) | (139) | (2) | (417) | (112) | — | — | (112) | | Disposals | 366 | 141 | — | 507 | 363 | — | — | 363 | | Transfers and others | (199) | — | (45) | (244) | — | — | — | — | | Balance at 31 December 2025 | (1,795) | (307) | (85) | (2,187) | (715) | — | — | (715) | | Impairment losses | | | | | | | | | | Opening balance at 1 January 2024 | (66) | — | (96) | (162) | — | — | — | — | | Charge for the year | (3) | — | — | (3) | 2 | — | — | 2 | | Disposals | — | — | — | — | — | — | — | — | | Transfers and others | 5 | — | 9 | 14 | (2) | — | — | (2) | | Balance at 31 December 2024 | (64) | — | (87) | (151) | — | — | — | — | | Charge for the year | 3 | — | — | 3 | 1 | — | — | 1 | | Disposals | — | — | — | — | — | — | — | — | | Transfers and others | 29 | — | 11 | 40 | (1) | — | — | (1) | | Balance at 31 December 2025 | (32) | — | (76) | (108) | — | — | — | — | | Tangible assets, net | | | | | | | | | | Balance at 31 December 2024 | 5,144 | 902 | 173 | 6,219 | 2,166 | — | — | 2,166 | | Balance at 31 December 2025 | 4,537 | 893 | 395 | 5,825 | 422 | — | — | 422 | 93 b) Property, plant and equipment - for own use The detail, by class of asset, of ‘Property, plant and equipment - For own use’ on the balance sheets in 2025 and 2024   is as follows: | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | EUR million | | | | | | | | Cost | Accumulated depreciation | Impairment losses | Carrying amount | Of which, right-of-use for operating lease | | Land and buildings | 5,610 | (1,290) | (64) | 4,256 | 2,166 | | Furniture, fixtures and vehicles | 968 | (241) | — | 727 | — | | Computer hardware | 249 | (155) | — | 94 | — | | Other | 67 | — | — | 67 | — | | Balance at 31 December 2024 | 6,894 | (1,686) | (64) | 5,144 | 2,166 | | Land and buildings | 5,060 | (1,368) | (32) | 3,660 | 422 | | Furniture, fixtures and vehicles | 945 | (253) | — | 692 | — | | Computer hardware | 270 | (174) | — | 96 | — | | Other | 89 | — | — | 89 | — | | Balance at 31 December 2025 | 6,364 | (1,795) | (32) | 4,537 | 422 | The carrying amount at 31 December 2025 in the table above includes the following approximate amounts: • EUR 6 million (EUR 5 million at 31 december 2024) relating to property, plant and equipment owned by Banco Santander's branches located abroad. • EUR 181 million (EUR 217 million at 31 December 2024) relating to property, plant and equipment held under finance leases by Banco Santander, of which EUR 170 million related to leases in effect as of 31 December 2025 (EUR 205 million at 31 December 2024). c) #### Tangible assets - Leased out under an operating #### lease Banco Santander has assets assigned under operating lease where the company is the lessor and they do not meet the accounting requirements to be classified as financial leases. The net cost of these leases is recorded as an asset and is depreciated on a straight-line basis over the contractual term of the lease up to the expected residual value. The expected residual value and, consequently, the monthly depreciation expense may change during the term of the lease. The Bank estimates expected residual values using independent data sources and internal statistical models. Likewise, it evaluates the estimate of the residual value of said leases and adjusts the depreciation rate based on the change in the expected value of the asset at the end of the lease. Banco Santander periodically evaluates its investment in operating leases and whenever there are indications of impairment, such as a systemic and material decrease in the values of the assigned assets. If assets leased under operating leases are considered to be impaired, impairment is measured as the amount by which the assets' carrying amount exceeds fair value as estimated by discounted cash flows. During the years 2025 and 2024, the Bank has not recorded any material impairment for this concept. During the years 2025 and 2024, no significant variable payments have been made not included in the valuation of lease assets. #### d) Tangible assets - Investment property The fair value of the investment property at 31 December  2025 and 2024 amounts to EUR 492 million and EUR 259 million, respectively. A comparison of the fair value of investment property at 31 December  2025 and 2024 with the net book value results in gross unrealised gains of EUR 97 million and EUR 86 million for each of these years, respectively, attributed to the Bank in full. Rental income from investment properties and direct expenses related to both investment properties that generated income during 2025 and 2024 and those investment properties that did not generate income during 2025 and 2024 are not material in the context of the entity's annual accounts. 94 16. Intangible assets a) Goodwill The detail of the 'Goodwill', on the balance sheets is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Santander España | 623 | 623 | | Amortization charge | (476) | (414) | | Balance at end of year | 147 | 209 | The movement during the years 2025 and 2024 has been as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Balance at beginning of the year | 209 | 271 | | Additions (note 3) | | — | | Amortization charge | (62) | (62) | | Impairment losses | — | — | | Disposals or changes in scope | — | — | | Balance at end of year | 147 | 209 | Neither in 2025, nor in 2024 has goodwill been generated. All of the goodwill recorded at the end of the 2025 and 2024 financial years comes from the following corporate operations that were carried out in the 2018 financial year: • Merger by absorption of Banco Popular Español, S.A.U. On June 7, 2017, Banco Santander acquired 100% of the share capital of Banco Popular Español, S.A.U. Subsequently, on September 28, 2018, the deed of merger by absorption of Banco Popular Español, S.A.U. was registered in the Mercantile Registry of Cantabria by Banco Santander, S.A. with accounting effects January 1, 2018, transferring to the books of Banco Santander a gross goodwill of EUR 248 million. • Repurchase of the credit and debit card business marketed by Grupo Banco Popular in Spain and Portugal generating the business combination a goodwill of EUR 375 million. In accordance with Bank of Spain Circular 4/2017, the goodwill is amortized within a period of ten years. In addition, the Bank periodically reviews the term and method of amortization and, if deemed inappropriate, the impact will be treated as a change in accounting estimates. As of 31 December 2025 and 2024 the amount of goodwill recorded by Banco Santander, net of accumulated depreciation, amounted to EUR 147 million and EUR 209 million, respectively. Banco Santander, at least annually and whenever there are signs of impairment, conducts an analysis of the potential loss of value of the trade funds it has recorded in respect of their recoverable value. The first step in carrying out this analysis requires the identification of the cash-generating units, which are the smallest identifiable groups of assets in Banco Santander  that generate cash inflows and are largely independent of the cash flows of other assets or asset groups. For the purposes of those mentioned in the preceding paragraph, the Bank's administrators have identified the commercialbanking business in Spain as the cash- generating unit to which to allocate goodwill arising both by the acquisition and subsequent merger by absorption of Banco Popular Español, S.A.U. and by the repurchase of the credit and debit cards from Grupo Banco Popular. Its carrying value is determined taking into account the book value of all the assets and liabilities that make up the commercial banking business in Spain, together with the corresponding goodwill. Said book value is compared with its recoverable amount in order to determine if there is impairment. The recoverable amount of Santander España cash- generating unit has been determined as the fair value of such cash-generating unit obtained using quotes, market references (multiples) or internal estimates. At the end of the fiscal year said value exceeded the book value. Based on previous data, and in accordance with the estimates of the Bank's administrators, during the years 2025 and 2024 the Bank has not recorded any amount under the heading 'Impairment in value or reversal of impairment in value of non-financial assets - intangible assets' in concept of impairment of goodwill. b) Other intangible assets i. Breakdown The detail of Intangible assets  ‘Other intangible assets’ on the balance sheets is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2024 | 2023 | | With finite useful life | | | | IT Developments | 1,580 | 1,480 | | Accumulated amortization | (978) | (859) | | Balance at end of year | 602 | 621 | 95 ii. Changes The changes in Intangible assets ‘Other intangible assets’ on the balance sheets were as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Balance at 31 of december of prior year | 621 | 571 | | Additions | 196 | 222 | | Disposals | (80) | (178) | | Amortization charge | (195) | (172) | | Amortization charge disposals | 76 | 178 | | Impairments losses | -16.00 | — | | Balance at end of year | 602 | 621 | 17. Other assets and Other liabilities The detail of ‘Other assets and Other liabilities’ on the accompanying balance sheets is as follows: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR million | | | | | | | Assets | | Liabilities | | | | 2025 | 2024 | 2025 | 2024 | | Transactions in transit | — | — | 17 | 5 | | Insurance contracts linked to pensions (note 14) | 240 | 267 | — | — | | Inventory | — | — | — | — | | Prepayments and accrued income | 583 | 522 | 2,815 | 2,856 | | Other A | 1,365 | 1,848 | 1,305 | 1,306 | | Total | 2,188 | 2,637 | 4,137 | 4,167 | A. Includes, mainly, unsettled transactions. 96 18. Deposits from central banks #### and credit institutions The detail by classification, type and currency of ‘Deposits from central banks’ and ‘Deposits from credit institutions’ on the accompanying balance sheets is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | CENTRAL BANKS | | | | Classification | | | | Financial liabilities held for trading | 5,465 | 9,123 | | Financial liabilities designated at fair value through profit or loss | 3,086 | 1,774 | | Financial liabilities at amortized cost | 7,522 | 5,117 | | | 16,073 | 16,014 | | Type | | | | Current accounts / Intraday deposits | 857 | 404 | | Time deposits | 9,752 | 4,960 | | Deposits available with prior notice | — | — | | Repurchase agreements | 5,464 | 10,650 | | | 16,073 | 16,014 | | Currency | | | | Euro | 7,131 | 7,991 | | US dollar | 7,078 | 5,432 | | Pound Sterling | 1,768 | 2,513 | | Other currencies | 96 | 78 | | | 16,073 | 16,014 | | CREDIT INSTITUTIONS | | | | Classification | | | | Financial liabilities held for trading | 30,602 | 24,884 | | Financial liabilities designated at fair value through profit or loss | 1,521 | 2,107 | | Financial liabilities at amortized cost | 34,678 | 38,691 | | | 66,801 | 65,682 | | Nature | | | | Current accounts / Intraday deposits | 4,307 | 4,752 | | Time deposits | 15,389 | 18,222 | | Deposits available with prior notice | — | — | | Repurchase agreements | 47,105 | 42,708 | | | 66,801 | 65,682 | | Currency | | | | Euro | 41,207 | 38,693 | | US dollar | 17,635 | 22,011 | | Pound Sterling | 2,690 | 2,866 | | Other currencies | 5,269 | 2,112 | | | 66,801 | 65,682 | | Total | 82,874 | 81,696 | As of December 31, 2025 and 2024, the Bank has not obtained long-term conditional financing from the European Central Bank (TLTRO, targeted longer-term refinancing operation). Therefore, as of December 31, 2025, there is no expense recognized in the income statement for deposits related to TLTRO III (as of December 31, 2024, this recognized expense amounted to 53 million euros). 97 The deposits classified in the 'Liabilities held for trading' portfolio correspond to temporary transfers of assets from Spanish and foreign institutions. Note 49 contains a detail of the residual maturity periods of financial liabilities at amortized cost. 19. Customer deposits The detail by classification, type, sector and geographical area, of ‘Customer deposits’ is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Classification | | | | Financial liabilities held for trading | 28,599 | 13,503 | | Financial liabilities designated at fair value through profit or loss | 32,516 | 28,307 | | Financial liabilities at amortized cost | 376,542 | 348,912 | | | 437,657 | 390,722 | | Type | | | | Current accounts / Intraday deposits | 269,758 | 256,576 | | Time deposits A | 115,834 | 99,289 | | Deposits available with prior notice | — | — | | Repurchase agreements | 52,065 | 34,857 | | Of which, subordinated deposits | — | — | | Of which, issued securities | 4,855 | 3,609 | | | 437,657 | 390,722 | | Sector | | | | Public sector | 60,107 | 41,299 | | Other financial companies | 97,949 | 87,905 | | Non-financial companies | 119,617 | 110,029 | | Households | 159,984 | 151,489 | | | 437,657 | 390,722 | | Geographical area | | | | Spain | 287,340 | 272,054 | | Europe | 77,015 | 66,793 | | of which United Kingdom | 17,538 | 14,608 | | America | 43,968 | 40,976 | | of which United States of America | 35,045 | 34,172 | | of wich Brazil | 142 | 148 | | Rest of the world | 29,334 | 10,899 | | | 437,657 | 390,722 | A. Of the total time deposits, EUR 22,265 million correspond to branches of the entity abroad (EUR 21,077 million in 2024). The item issued securities in the table above include the liabilities associated with securitisation transactions (see note 10.e). Note 49 contains a detail of the residual maturity periods of financial liabilities at amortized cost. 98 20. Marketable debt securities a) Breakdown The detail by classification and type, of ‘Marketable debt securities’ in the accompanying balance sheets is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Classification: | | | | Financial liabilities at amortized cost | 137,997 | 125,969 | | Financial liabilities designated at fair value through profit or loss | 1,587 | 1,069 | | | 139,584 | 147,182 | | Type: | | | | Certificates of deposit | 16,043 | 9,633 | | Guaranteed bonds | 55,872 | 50,774 | | Mortgage-backed bonds | 45,004 | 39,903 | | Others mortgage-backed bonds and guaranteed bonds | 10,868 | 10,871 | | Other issued securities (note 21) | 100,288 | 114,982 | | Of which, subordinated liabilities | 21,774 | 28,142 | | Treasury shares A | (33,810) | (29,539) | | Valuation adjustments | 1,191 | 1,332 | | | 139,584 | 147,182 | A. At 31 December 2025 y 2024, the registered balance corresponds mainly to guaranteed bonds. Note 49 contains a detail of the residual maturity periods of financial liabilities at amortized cost. b) Certificates of deposit The detail of certificates of deposits by currency of issuance is as follows: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | EUR million | | 2025 | | | | 2025 | 2024 | Outstanding issue amount in foreign currency (million) | Annual interest rate A | | Currency of issuance | | US dollar | 13,096 | 6,005 | 15,396 | 4.43% | | Pound Sterling | 2,236 | 2,947 | 1,952 | 4.10% | | Hong Kong dollar | 495 | 605 | 4,528 | 3.36% | | Chinese Yuan | 216 | 76 | 1,774 | 2.14% | | Balance at end of the year | 16,043 | 9,633 | | | A. Average interest rates for different issue based on their nominal values. 99 i. Changes The changes in certificate of deposit on the balance sheet for the years 2025 and 2024 are  as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Balance at end of the prior year | 9,633 | 10,820 | | Issues | 26,447 | 17,184 | | Redemptions | (19,043) | (18,965) | | Exchange differences and other changes | (994) | 594 | | Balance at end of the year | 16,043 | 9,633 | At 31 December 2025, the Bank issued certificates of deposit amounting to EUR 26,447 million (EUR 17,184 million as at 31 December 2024), with an average maturity of 6 months (7 months during the 2024 financial year), of which EUR 19,043 million have been amortized (EUR 18,965 million at December 2024). #### c) Marketable Mortgage- backed securities The detail by currency of issuance, of ‘Marketable mortgage-backed securities’ is as follows: | | | | | | --- | --- | --- | --- | | | | | | | | EUR million | | 2025 | | | 2025 | 2024 | Annual interest rate A | | Currency of issuance | | Euros | 45,004 | 39,903 | 1.69% | | Balance at end of the year | 45,004 | 39,903 | | A. Average interest rate of the various issues based on their nominal values. The issuing entity may repay the mortgage bonds early, if this has been expressly established in the final conditions of the issue in question and in the conditions established there. None of the mortgage bonds issued by Banco Santander have replacement assets involved. During 2023, the Bank of Spain has published Circular 1/2023 of 4 February , which modifies Circular 4/2017, repealing the breakdown in the annual accounts and the information related to internal accounting development and management control. d) Other mortgage bonds and guaranteed bonds The balance of ‘Other mortgage bonds and guaranteed bonds’ relates to the rest of covered bonds and certificates. The breakdown, by issue currency and interest rate, is as follows: | | | | | | --- | --- | --- | --- | | | | | | | | EUR million | | 2025 | | Currency of issuance | 2025 | 2024 | Annual interest rate A | | | | | | | Euro | 5,296 | 4,807 | 2.30% | | US dollar | 5,572 | 6,064 | 5.07% | | Balance at end of the year | 10,868 | 10,871 | | A. Average interest rate of the various securities at 31 December 2025 based on their nominal amounts. #### e) Guarantee The mortgage-backed bonds (‘ cédulas hipotecarias ’) are secured by mortgage loans with average maturities of more than ten years. In order to calculate the amount of the qualifying assets in accordance with Royal Decree- Law 24/2021 transposing the European Union directive on covered bonds, the following transactions are excluded from the total base of the unsecuritized mortgage portfolio: – Transactions classified as at pre-action stage and procedural stage. – Transactions without appraisal by a specialist valuer. – Transactions exceeding 80% of the appraized value in residential financing and 60% in the case of other assets. – Second mortgages or mortgages with insufficient collateral. – Transactions without insurance or with insufficient insurance. The asset-backed securities, including asset-backed securities and notes issued by special-purpose vehicles (SPVs), are secured by: – Mortgage loans to individuals to finance the acquisition and refurbishment of homes with an average maturity of more than ten years. – Personal consumer finance loans with no specific guarantee and unsecured loans with an average maturity of five years. 100 – Loans to SMEs (non-financial small and medium- sized enterprises) secured by State guarantees, and loans to companies (SMEs -self-employed, microbusinesses, small and medium-sized enterprises- and large companies) secured by property mortgages, the borrower's personal guarantee, guarantees and other collateral other than property mortgages, with an average maturity of 7 years. – Mortgage and non-mortgage loans to finance municipalities, autonomous communities and subsidiaries with an average maturity of more than 10 years. – Commercial credit of Banco Santander (ordinary and occasional invoice discounting and advances to customers on legitimate receivables) with an average maturity of 45 days. Additionally, Banco Santander, issues internationalization certificates, which are securities whose capital and interest are guaranteed by loans and credits that are linked to the financing of export contracts or the internationalization of companies. These internationalization bonds have been repurchased in their entirety by Banco Santander. The fair value of the guarantees received by Banco Santander (financial and non-financial assets) which the Group is authorised to sell or pledge even if the owner of the guarantee has not defaulted is scantly material taking into account the Bank's financial statements as a whole. 21. Other issuances a) Breakdown The following is a breakdown of the balance under this heading on the attached balance sheets, taking into account their nature and currency of the transactions: | | | | | --- | --- | --- | | | | | | EUR million A | | | | | 2025 | 2024 | | Type | | | | Other issuances | 100,288 | 114,982 | | Of which, subordinated liabilities | 21,774 | 28,142 | | | 100,288 | 114,982 | | Currency | | | | Euro | 52,112 | 59,999 | | US dollar | 36,359 | 43,616 | | Pound Sterling | 5,076 | 5,360 | | Other currencies B | 6,741 | 6,007 | | | 100,228 | 114,982 | A. This amount includes the principal, in other currencies. B. At 31 December 2025, the most significant currencies are: Swiss franc (EUR 2,845 million), Australian dollar (EUR 2,156 million) and Norwegian krone (EUR 469 million). At 31 December 2024, the most significant currencies were: Swiss franc (EUR 2,476 million), Australian dollar (EUR 1,895 million) and Norwegian krone (EUR 401 million). #### b) Changes The changes in ‘Other issuances ’ in the foregoing table for the years 2025 and 2024 are as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Balance at the end of prior year | 114,982 | 105,185 | | Issues | 24,537 | 40,824 | | Redemptions | (34,020) | (33,871) | | Exchange differences | (5,211) | 2,844 | | Balance at end of the year | 100,288 | 114,982 | Within the sub-heading ’Other issuances’ there are commercial paper issues as well as other issuances made by Banco Santander. • Commercial paper On March 14, 2025, Banco Santander approved the annueal renewal of the "European Comercial Paper Issuance Program" for an overall maximum nominal amount up to EUR 20,000 million. On November 14, 2025, the "American Commercial Paper Issuance Program" was renewed for an aggregate nominal amount of up to USD 25,000 million. As at 31 December 2025, the average nominal interest rate for European Commercial Paper stood at 2.73% per annum, while that for American Commercial Paper was 4.26% per annum. At year-end 2024, the average nominal interest rate was 4.47% per annum. As regards renewals in 2024, on March 14, 2024, Banco Santander approved the annueal renewal of the "European Comercial Paper Issuance Program" for an overall maximum nominal amount up to EUR 20,000 million. On November 15, 2024, the "American Commercial Paper Issuance Program" was renewed for an aggregate nominal amount of up to USD 25,000 million. • Remaining emissions During financial year 2025, Banco Santander, S.A. carried out 48 issuances of "Other non-convertible securities" for a nominal amount of EUR 9,569 million (no perpetual issuances were carried out in 2025, see Note 21.c), of which the Bank repurchased a nominal amount of EUR 34 million. The average yield on these issuances was 4.47% per annum. During financial year 2024, Banco Santander, S.A. carried out 76 issuances of “Other non-convertible securities” for a nominal amount of EUR 20,253 million (no perpetual issuances were carried out in 2024; see Note 21.c), of which the Bank repurchased a nominal amount of EUR 370 million. The average yield on these issuances was 4.53% per annum. 101 #### c)  Other disclosures This caption includes contingent convertible or redeemable preferred participations, as well as other subordinated financial instruments issued , which do not qualify as equity (preferred shares). Preferred shares do not have voting rights and are non- cumulative. They have been subscribed by third parties outside the Group and are redeemable by decision of the issuer, according to the terms of each issue. Banco Santander's contingently convertible preferred participations are subordinated debentures and rank after common creditors and any other subordinated credit that by law and/or by their terms, to the extent permitted by Spanish law, ranks higher than the contingently convertible preferred participations. Their remuneration is conditioned to the obtainment of sufficient distributable profits, and to the limitations imposed by the regulations on shareholders' equity, and they have no voting rights. The other issues of Banco Santander, S.A. mentioned in this caption are also subordinated debentures and, for credit ranking purposes, they rank behind all the common creditors of the issuing entities and ahead of any other subordinated credit that ranks pari passu with the Bank's contingently convertible preferred participations. The main issuances of subordinated debt securities, broken down by company, are detailed below: Issuances by Banco Santander, S.A. On 1 December 2025, Banco Santander, S.A. has proceeded to redeem in advance all the issued subordinated obligations: 'EUR 60,000,000, with original maturity date on December 2026 and with ISIN code XS1492669509. On 19 November 2025, Banco Santander, S.A. carried out an issuance for an amount of USD1,500 million with ISIN code US05971KAA79. On 24 September 2025, Banco Santander, S.A. proceeded to redeem in advance all the issued subordinated obligations: 'EUR 50,000,000 Fixed/ Floating', with original maturity date on March 2029 and with ISIN code XS1585005314. On 5 August 2025, Banco Santander, S.A. proceeded to redeem in advance the subordinated debt issuances with ISIN code XS1384064587, for a nominal amount of EUR 1,500 million, with a coupon of 3.250% and original maturity date on April 2026 and with ISIN code XS1548444816, for a nominal amount of EUR 1,000 million, with a coupon of 3.125% and original maturity date on January 2027. On 2 July 2025, Banco Santander, S.A. proceeded to repurchase for their subsequent redeem in advance the contingently convertible preferred shares with ISIN code XS2102912966, for a total nominal amount of EUR 466.6 million and which are traded on the market of the Irish Stock Exchange 'Global Exchange Market', leaving the amount in circulation at  EUR 1,033.4 million. On 2 July 2025, Banco Santander, S.A. carried out a placement of preference shares contingently convertible into newly issued ordinary shares of the Bank (PPCC), for a nominal amount of EUR 1,500 million. The Issuance has been made at par and the remuneration of the PPCC, whose payment is subject to certain conditions and is also discretionary, has been set at 6% quarterly for the first six years, being reviewed every five years thereafter by applying a margin of 381.9 basis points over the five- year mid-swap rate. On 18 March 2025, Banco Santander, S.A. carried out an issuance for an amount of EUR 1,500 million with ISIN code XS1201001572. On 17 February 2025, Banco Santander, S.A. prepaid EUR 600.8 million out of a total of EUR 1,500 million of the transaction with ISIN XS138406464587 following the tender announcement launched on 6 February 2025. On 17 February 2025, Banco Santander, S.A. prepaid EUR 563.6 million euros out of a total of EUR 1,000 million of the transaction with ISIN XS1548444816 following the tender announcement launched on 6 February 2025. On 1 August 2024, Banco Santander, S.A. carried out a placement of preference shares contingently convertible into newly issued ordinary shares of the Bank (PPCC), for a nominal amount of USD 1,500 million (valued at EUR 1,356 million). The issuance has been made at par and the remuneration of the PPCC, whose payment is subject to certain conditions and is also discretionary, has been set at 8% annually for the first ten years, being reviewed every five years thereafter by applying a margin of 391.1 basis points over the 5-year mid-swap rate. On 20 May 2024, Banco Santander, S.A., proceeded to partially redeem in advance the contingently convertible preferred shares with ISIN code XS1793250041, for a total nominal amount of EUR 1,312 million and which are traded on the market of the Irish Stock Exchange 'Global Exchange Market' (the 'PPCC'), leaving the amount in circulation at EUR 187.6 million . On 20 May 2024, Banco Santander, S.A. carried out a placement of preference shares contingently convertible into newly issued ordinary shares of the Bank (PPCC), for a nominal amount of EUR 1,500 million . The Issuance has been made at par and the remuneration of the PPCC, whose payment is subject to certain conditions and is also discretionary, has been set at 7% annually for the first six years , being reviewed every five years thereafter by applying a margin of 443.2 basis points over the 5 - year mid-swap rate. 102 On 14 March 2024, Banco Santander, S.A. issued subordinated obligations for an amount of USD 1,250 million (valued at EUR 1,158 million ) for a term of 10 years. The issuance was made at par and the issue coupon was set at 6.35% per year, payable bi-annually. On 8 February 2024, Banco Santander, S.A., proceeded to prepay all of the contingently convertible Tier 1 preferred shares with ISIN code XS1951093894, for a total nominal amount of USD 1,200 million (valued at EUR 1,110 million ) and that were traded on the Irish Stock Exchange 'Global Exchange Market' (the 'PPCC'). On 22 January 2024, Banco Santander, S.A. issued subordinated bonds for an amount of EUR 1,250 million for a term of 10 years and 3 months. The issue was carried out at 99.74% and the issue coupon was set at 5% per year for the first 5 years and 3 months, with an amortization option in April 2029, reviewing the coupon, in case of non-amortization, at a fixed rate equivalent to a margin of 250 points plus the 5-year Euro swap rate. On 29 December 2023,  Banco Santander, S.A., proceeded to prepay all the Tier 1 Contingently Convertible Preferred Securities with ISIN code XS1692931121 for a total nominal amount of EUR 1,000 million and which were traded on the Irish Stock Market 'Global Exchange Market' (the 'PPCC'). On 21 November 2023, Banco Santander, S.A., carried out a placement of two series of contingently convertible preferred shares into newly issued ordinary shares of the Bank, for a total nominal amount of USD 1,150 million (EUR 1054.000 million at the exchange rate on the day of issue) and USD 1,350 million (EUR 1235.000 million at the exchange rate on the day of issue), respectively. The issue was carried out at par and the remuneration of the PPCC, whose payment is subject to certain conditions and is also discretionary, was set (i) for the first Series at 9.625% annually for the first five years and six months, being reviewed every five years thereafter by applying a margin of 530.6 basis points on the five-year UST rate ( 5-year UST), and (ii) for the second Series at 9.625% annually for the first ten years , being reviewed thereafter every five years , applying a margin of 529.8 basis points on the five-year UST rate. On 8 August 2023, Banco Santander, S.A. carried out an issuance of subordinated obligations for an amount of 2,000 million dollars (1,821 million euros at the exchange rate on the day of issuance) . The issue was carried out at par coupon was set at 6.921% per year, payable semiannually during the 10-year life of the operation. On 23 May 2023, Banco Santander, S.A. issued subordinated bonds for an amount of 1,500 million euros for a term of 10 years and 3 months. The issue was carried at 99.739% and the coupon of the issue was set at 5.75% annually for the first 5 years and 3 months, with the option of amortization in August 2028, revising the coupon, in case of non-amortization, at a margin of 285 points plus the Euro Swap type 5 years . On 25 April 2022, Banco Santander, S.A. proceeded to prepay all the Tier 1 Contingently Convertible Preferred Securities with ISIN code XS1602466424 and common code 160246642 in circulation, for a total nominal amount of EUR 750 million and which were traded on the Irish Stock Market 'Global Exchange Market' (the 'PPCC'). On 22  November 2021, Banco Santander, S.A. issued subordinated debentures for a term of eleven years, with a redemption option on the tenth anniversary of the issue date, in the amount of USD 1,000 million (EUR 1,007 million at the exchange rate on the day of issue). The issue bears interest at an annual rate of 3.225%, payable semi-annually, for the first ten years. This issue has an early redemption option in the tenth year from the issue date and if the redemption is not executed in the tenth year, the coupon is repriced at a margin of160 points over the one-year US government bond. On 4 October 2021, Banco Santander, S.A. issued subordinated debentures for a term of eleven years, with a redemption option on the sixth anniversary of the issue date, amounting to GBP 850 million(EUR 887 millionat the exchange rate on the day of issue). The issue bears interest at an annual rate of2.25% payable annually for the first six years (then repricing at a margin of 165) points over the 5 -year UK government bond). At 21 September 2021, Banco Santander, S.A. carried out a placement of preferential shares contingently convertible into newly issued ordinary shares of the Bank ('PPCC') for a nominal amount of EUR1,000 million (issue placed on the market EUR 997 million). The issuance was carried out at par and the remuneration of the PPCC, whose payment is subject to certain conditions and is also discretionary, was set at 3.625% per year for the first eight years , being reviewed every five years applying a margin of 376 basis points over the 5-year Mid-Swap Rate. 103 On 12 May 2021, Banco Santander, S.A. placed the issue of preference shares contingently convertible into newly issued ordinary shares of the Bank, previously announced, for a total nominal amount of EUR1,578 million, issued in a Series in Dollars of  USD 1,000 million (EUR 828 million at the exchange rate on the day of issue) and a Series in Euros for an amount of EUR 750 million. The issuance was carried out at par and the remuneration of the PPCC, whose payment is subject to certain conditions and is also discretionary, was set (i) for the Series in Dollars at 4.750% per annum for the first six years , being revised every five years applying a margin of 375.3 basis points over the 5 -year UST rate and (ii) for the Series in Euros by 4.125% per annum for the first seven years, being revised every five years applying a margin of 431.1 basis points over the applicable 5-year euro mid-swap. On 3 December 2020, Banco Santander, S.A. issued subordinated debentures with a ten -year term of USD 1,500 million (EUR 1,222 million at the date of issue). The issue bears interest at an annual rate of 2.749%, payable semiannually. On 22 October 2020, it carried out a ten -year subordinated debenture issue for an amount of EUR 1,000 million . The issue bears interest at an annual rate of 1.625% , payable annually. On 14 January 2020, it carried out a placement of contingently convertible preferred participations into newly issued ordinary shares of the Bank (the 'PPCCs'), excluding the pre-emptive subscription rights of its shareholders and for a nominal amount of  EUR 1,500 million (the 'Issuance' and the 'PPCCs'). The Issuance was made at par and the remuneration of the PPCCs, the payment of which is subject to certain conditions and is also discretionary, was set at 4.375% per annum for the first six years, revised every five years thereafter by applying a margin of 453.4 basis points over the 5-year mid-Swap Rate (5 -year mid-Swap Rate). On 8 February 2018, a ten-year subordinated debenture issuance of EUR 1,250 million was carried out. The issue accrues annual interest of 2.125% payable annually. 22. Other financial liabilities #### a) Breakdown The following is a detail of ‘Other financial liabilities’ on the accompanying balance sheets: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Trade payables | 824 | 780 | | Payment obligations | 1,188 | 2,693 | | Public agency revenue collection accounts | 5,224 | 4,864 | | Unsettled financial transactions | 878 | 3,199 | | Other accounts | 1,941 | 1,711 | | Total | 10,055 | 13,247 | #### b) Average payment period to suppliers Set forth below are the disclosures required by Additional Provision Three of Law 15/2010, of 5 July (amended by Final Provision Two of Law 31/2014, of 3 December), prepared in accordance with the Spanish Accounting and Audit Institute (ICAC) Resolution of 29 January 2016 on the disclosures to be included in notes to financial statements in relation to the average period of payment to suppliers in commercial transactions. | | | | | --- | --- | --- | | | | | | | 2025 | 2024 | | | Days | | | Average period of payment to suppliers | 10 | 11 | | Ratio of transactions paid | 10 | 11 | | Ratio of transactions pending payments | 39 | 19 | | | EUR million | | | Total payments made | 3,548 | 3,840 | | Total payments outstanding | 1 | 10 | Additionally, the data for Grupo Santander in Spain, in the financial year 2025, are as follows: | | | | --- | --- | | | | | | 2025 | | | Days | | Average period of payment to suppliers | 11 | | Ratio of transactions paid | 11 | | Ratio of transactions pending payments | 65 | | | EUR million | | Total payments made | 8,081 | | Total payments outstanding | 6 | In accordance with the ICAC Resolution, the average period of payment to suppliers was calculated by taking into account commercial transactions relating to the supply of goods or services for which payment has accrued since the date of issuance of Law 31/2014, of December, 3. 104 Additionally, in accordance with Law 18/2022 of September 28, listed commercial companies must report the average payment period to suppliers, the monetary volume and number of invoices paid in a period less than the maximum established in the delinquency regulations. and the percentage that it represents over the total number of invoices and over the total monetary payments to its suppliers. | | | | | --- | --- | --- | | | | | | Payments to suppliers made sooner than maximum  period established by the regulations | 2025 | 2024 | | Average payment period to suppliers (days) | 10 | 9 | | Number of invoices paid | 459,587 | 523,490 | | Invoices paid in a period sooner than the maximum established over the total number of invoices paid | 99,94% | 99,81% | | Total payments made (EUR million) | 3,545 | 3,755 | | Invoices paid in a period less than the maximum on the total amount of invoices paid | 99,92% | 97,79% | Additionally, the data for Grupo Santander in Spain, in the financial year 2025, are as follows: | | | | --- | --- | | | | | Payments to suppliers made sooner than maximum  period established by the regulations | 2025 | | Average payment period to suppliers (days) | 8 | | Number of invoices paid | 630,135 | | Invoices paid in a period sooner than the maximum established over the total number of invoices paid | 98,11% | | Total payments made (EUR million) | 7,691 | | Invoices paid in a period less than the maximum on the total amount of invoices paid | 95,17% | For the sole purpose of the disclosures provided in the Resolution, suppliers are considered to be commercial creditors for debts with suppliers of good and services. “Average period of payment to suppliers” is taken to be the period that elapses from the delivery of the goods of the provision of the services by the supplier to the effective payment of the operation. Note 49 contains a detail of the maturity periods of ‘Other financial liabilities’ at each year-end. #### c) Lease liabilities The cash outflow of leases in 2025 was EUR 142 million (in 2024 it was EUR 293 million). The analysis of the maturities corresponding to the lease liabilities at 31 December 2025 and 2024, is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Maturity Analysis – Discounted payments | | | | Within 1 year | 123 | 273 | | Between 1 and 3 years | 185 | 472 | | Between 3 and 5 years | 72 | 342 | | Later than 5 years A | 78 | 1,255 | | Total Discounted payments at 31 December 2023 | 458 | 2,342 | A. The change is due to the merger by absorption in 2025 of URO Property Holdings, S.A. and Blecno Investments, S.L.U. (see Note 1.i) During 2025 and 2024, no significant variable payments have been made not included in the valuation of lease liabilities. 105 23. Provisions a) Breakdown The detail of ‘Provisions’ in the balance sheets at 31 December 2025 and 2024 is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Provision for pensions and similar obligations | 1,322 | 1,346 | | Of which | | | | Pensions and similar defined benefit obligations post-employment | 578 | 647 | | Other long-term remunerations to employees | 744 | 699 | | Restructuring | 106 | 408 | | Provisions for taxes and other legal contingencies | 815 | 762 | | Provisions for commitments and guarantees given | 179 | 175 | | Other provisions | 558 | 499 | | Total | 2,980 | 3,190 | b) Changes The changes in ‘Provisions’ in 2025 and 2024 were as follows: | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | EUR million | | | | | | | | | | | | | 2025 | | | | | 2024 | | | | | | | Post- employment | Long – Term | Contingent liabilities and commitments | Other provisions | Total | Post- employment | Long - Term | Contingent liabilities and commitments | Other provisions | Total | | Balance at end of prior year | 647 | 699 | 175 | 1,669 | 3,190 | 748 | 696 | 184 | 1,816 | 3,444 | | Changes in value recognized in equity | (30) | — | — | — | (30) | 16 | — | — | — | 16 | | Additions charged to income | (2) | 319 | 11 | 296 | 624 | 8 | 256 | (13) | 445 | 696 | | (Interest income)/ Interest expense (notes 34 and 35) | 12 | 23 | — | — | 35 | 13 | 22 | — | — | 35 | | Staff costs (note 42) | 1 | 1 | — | — | 2 | 1 | 1 | — | — | 2 | | Provisions or reversal of  provision | (15) | 295 | 11 | 296 | 587 | (6) | 233 | (13) | 445 | 659 | | Payments to pensioners and pre-retirees | (61) | (274) | — | — | (335) | (79) | (253) | — | — | (332) | | Employer contributions | 7 | — | — | — | 7 | (58) | — | — | — | (58) | | Amounts used and other changes | 17 | — | (7) | (486) | (476) | 12 | — | 4 | (592) | (576) | | Balances at end of year | 578 | 744 | 179 | 1,479 | 2,980 | 647 | 699 | 175 | 1,669 | 3,190 | 106 c) Provision for pensions and similar obligations The detail of ‘Provision for pensions and similar obligations’ at 31 December 2025 and 2024 is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Provisions for pensions and similar defined benefit plan obligations | 1,322 | 1,346 | | Of which | | | | Provisions for pensions | 578 | 647 | | Provisions for similar obligations | 744 | 699 | | Of which, pre-retirements | 733 | 688 | | Provisions for pensions and similar defined contribution plan obligations | — | — | | Total provisions for pensions and similar obligations | 1,322 | 1,346 | i. Defined contribution plans At the end of 2012, Banco Santander reached an agreement with workers' representatives to transform the defined benefit commitments derived from the collective agreement into defined contribution plans. Similarly, the contracts for senior management staff with pension commitments in the defined benefit modality were amended to transform them into a defined contribution provision system. Almost all of the pension commitments with active personnel correspond to defined contribution plans. The total contributions made to these plans during 2025 amounted to EUR 111 million (EUR 108 million during 2024) (see note 42). ii. Defined Benefit Plans In addition to the previous defined contribution plans, at 31 December 2025, Banco Santander maintained definite service commitments. Below is the present value of the Bank`s commitments in post-employment remuneration for defined benefit programs, as well as the value of the reimbursement entitlements for insurance contracts linked to those obligations at 31 December 2025 and preceding year: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Present value of the obligations | | | | To current employees | 22 | 26 | | To retired employees | 1,594 | 1,840 | | Other | — | — | | | 1,616 | 1,866 | | Fair value of plan assets | (1,052) | (1,226) | | Assets not recognized | 3 | 3 | | Provisioned assets on the balance sheet | 11 | 4 | | Provisions - Provisions for pensions | 578 | 647 | | Of which | | | | Internal provisions for pensions | 338 | 380 | | Insurance contracts linked to pensions (note 14) | 240 | 267 | | Of which | | | | Group insurance entities | 173 | 186 | | Other insurers | 67 | 81 | The amount of the defined benefit obligations was determined on the basis of the work performed by independent actuaries using the following actuarial techniques: 1. Valuation method: projected unit credit method, which sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately. 2. Actuarial assumptions used: unbiased and mutually compatible. Specifically, the most significant actuarial assumptions used in the calculations were as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Annual discount rate | 3.75% | 3.00% | | Expected return on plan assets rate | 3.75% | 3.00% | | Mortality tables | PE2020 M/F Col. Orden 1 | PER2020 M/F Col. Orden 1 | | Cumulative annual CPI growth | 2.00% | 2.00% | | Annual salary increase rate | 1.25% | 1.25% | | Annual pension increase rate | 2.00% | 2.12% | 3. The discount rate used for the flows was determined referencing to high-quality corporate bonds. 107 4. The estimated retirement age of each employee is the first at which the employee is entitled to retire or the agreed-upon age, as appropriate. 5. The fair value of insurance contracts was determined as the present value of the related payment obligations, taking into account the following assumptions: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Expected rate of return on plan assets | 3.75% | 3.00% | | Expected rate of return on reimbursement rights | 3.75% | 3.00% | The amounts recognized in the accompanying income statements in relation to the aforementioned defined benefit obligations are as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Service cost: | | | | Current service cost (note 42) | 1 | 1 | | Past service cost (including reductions) | — | 3 | | Pre-retirement cost | — | — | | Reductions/liquidations | (15) | (9) | | Net interest (note 35) | 25 | 27 | | Expected return on insurance contracts linked to pensions (note 34) | (13) | (14) | | Total | (2) | 8 | In addition, in 2025 'Other comprehensive income – items not reclassified to profit or loss - Actuarial gains or (-) losses on defined benefit pension plans', resulted in an actuarial gain of EUR 30 million in relation to defined benefit obligations (an actuarial loss of EUR 15 million in 2024). The changes in 2025 and 2024 of the present value of the accrued defined benefit obligations were as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Present value of the obligations at beginning of the year | 1,866 | 1,955 | | Current service cost (note 42) | 1 | 1 | | Interest cost | 65 | 69 | | Pre-retirement cost | — | — | | Reductions/liquidations | (7) | (9) | | Benefits paid for settlements | (29) | — | | Other benefits paid | (174) | (200) | | Past service cost | — | 3 | | Actuarial (gains)/lossesA | (104) | 42 | | Exchanges rate differences and others | (2) | 5 | | Present value of the obligations at end of the year | 1,616 | 1,866 | A. In 2025, actuarial losses due to demographic assumptions and experience totalled EUR 18 million, while actuarial gains due to financial assumptions amounted to EUR 86 million (2024: actuarial losses due to demographic assumptions of EUR 1 million and actuarial losses due to financial assumptions of EUR 41 million). The changes in 2025 and 2024 in the fair value of the plan assets are as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Fair value of plan assets at beginning of year | 1,226 | 1,224 | | Expected return on plan assets | 40 | 42 | | Benefits paid | (141) | (121) | | Contributions payable by the employer | (7) | 58 | | Settlements gains/(losses) | 8 | — | | Exchange rate differences and others | (9) | (5) | | Actuarial gains/(losses) | (65) | 28 | | Fair value of plan assets at end of year | 1,052 | 1,226 | The changes in 2025 and 2024 in the fair value of the insurance contracts linked to pensions are as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Fair value of insurance contracts linked to pensions at beginning of the year | 267 | 288 | | Expected return on insurance contracts (note 34) | 13 | 14 | | Actuarial gains/(losses) | (9) | (1) | | Premiums paid/(surrenders) | — | — | | Benefits paid | (31) | (34) | | Exchange rate differences and others | — | — | | Fair value of insurance contracts linked to pensions at end of the year (note 14) | 240 | 267 | 108 Plan assets and pension insurance contracts linked to pensions are mainly based in insurance policies. iii. Other long-term employee benefits In various years, Banco Santander offered to some certain of its employees, the possibility of leaving its employ prior to their retirement. Therefore, provisions are recognized to cover the obligations to pre-retirees -in terms of salaries and other employee benefit costs- from the date of their pre-retirement to the date of their effective retirement. The present value of the aforementioned obligations and the fair value of the assets arising from insurance contracts linked to these obligations at 31 December 2025 and for the previous  exercises are as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Present value of the obligations: | | | | Early retirement | 736 | 693 | | Long-service bonuses and other benefits | 11 | 11 | | | 747 | 704 | | Fair value of plan assets | (3) | (5) | | Provisions - Provisions for pensions | 744 | 699 | | Insurance plans linked to pensions | — | — | | Group insurers | — | — | | Other insurance entities | — | — | In 2024, the provisions made to cover commitments to 603 employees under early retirements and voluntary redundancy plans amounted to EUR 237 million. In 2025, the provisions made to cover commitments to 962 employees under early retirements and voluntary redundancy plans amounted to EUR 315 million. The amount of the other long-term remuneration commitments defined benefit has been determined on the basis of work performed by independent actuaries, applying the following criteria to quantify them: 1. Valuation method: projected unit credit method. 2. Actuarial assumptions used: unbiased and mutually compatible. Specifically, the most significant actuarial assumptions used in the calculations were as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Annual discount rate | 3.75% | 3.00% | | Expected return on plan assets rate | 3.75% | 3.00% | | Mortality tables | PE2020 M/F Col. Orden 1 | PE2020 M/F Col. Orden 1 | | Cumulative annual CPI growth | 2.00% | 2.00% | | Annual benefit increase rate | Between 0% and 1.5% | Between 0% and 1.5% | 3. The discount rate used for the flows was determined by reference to high-quality corporate bonds. 4. The estimated retirement age of each employee is the first at which the employee is entitled to retire or the agreed-upon age, as appropriate. 5. The amounts recognised in the income statement in relation to the aforementioned defined benefit obligations are as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Service cost: | | | | Current service cost (note 42) | 1 | 1 | | Interest cost (note 35) | 23 | 22 | | Extraordinary charges | — | — | | Past service cost | | | | Actuarial (gains)/losses recognized in the year | (19) | 1 | | Pre-retirement cost | 315 | 237 | | Other | (1) | (5) | | Total | 319 | 256 | The changes in 2025 and 2024 in the present value of the accrued obligations for other long-term benefits were as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Present value of the obligations at beginning of the year | 704 | 703 | | Current service cost | 1 | 1 | | Cost per interest (note 35) | 23 | 22 | | Past service cost | — | — | | Pre-retirement cost | 315 | 237 | | Effect of curtailment/settlement | — | (4) | | Benefits paid | (276) | (255) | | Actuarial (gains)/losses | (19) | 1 | | Other | (1) | (1) | | Present value of the obligations at end of the year | 747 | 704 | 109 The movement that has occurred, during the years 2025 and 2024, in the fair value of the assets of the plan, has been as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Fair value of plan assets at the beginning of the year | 5 | 7 | | Expected return on plan assets | — | — | | Benefits paid | (2) | (2) | | Contributions by the employer | — | — | | Contributions by the employee and others | — | — | | Actuarial gains / (losses) | — | — | | Present value of the obligations at end of the year | 3 | 5 | iv. Sensitivity analysis Variations in the main assumptions may affect the calculation of commitments. At 31 December 2025, in the event that the discount interest rate had decreased or increased by 50 basis points, there would have been an increase or decrease in the current value of post- employment obligations of 4.02% and -3.75% respectively, and an increase or decrease in the current value of long-term obligations of 1.15% and -1.15%. These variations would be partially offset by increases or decreases in the fair value of assets and insurance contracts linked to pensions. The following table shows the estimate of benefits to be paid as of December 31, 2025 for the next ten years: | | | | --- | --- | | | | | EUR Million | | | 2026 | 405 | | 2027 | 349 | | 2028 | 297 | | 2029 | 248 | | 2030 | 205 | | 2031 to 2035 | 646 | #### d) Provisions for taxes and other legal contingencies #### and Other provisions 'Provisions - Provisions for taxes and other legal contingencies' and 'Provisions - Other provisions', which include, inter alia, provisions for restructuring costs and tax-related and non-tax-related proceedings, were estimated using prudent calculation procedures in keeping with the uncertainty inherent to the obligations covered. The definitive date of the outflow of resources embodying economic benefits for the Bank depends on each obligation. In certain cases, these obligations have no fixed settlement period and, in other cases, depend on the legal proceedings in progress. ‘Provisions for taxes and other legal contingencies’ include proceedings and other legal proceedings such as judicial, arbitral or administrative proceedings initiated against Banco Santander. Qualitative information on the main disputes is provided in note 23.e. For their part, the provisions for restructuring include only costs arising from restructuring processes incurred at Banco Santander. The Bank general policy is to record provisions for tax and legal proceedings in which the Group assesses the chances of loss to be probable and the Group does not record provisions when the chances of loss are possible or remote. Banco Santander determines the amounts to be provided for as its best estimate of the expenditure required to settle the corresponding claim based, among other factors, on a case-by-case analysis of the facts and the legal opinion of internal and external counsel or by considering the historical average amount of the loss incurred in claims of the same nature. The definitive date of the outflow of resources embodying economic benefits for the Bank depends on each obligation. In certain cases, the obligations do not have a fixed settlement term and, in others, they depend on legal proceedings in progress. As for the 'Other provisions' contains very atomized and individually insignificant provisions, such as the provisions corresponding to cover other operational risks of the Bank. 110 #### e) Litigation and other matters i. Tax-related litigation At 31 December 2025 the main tax-related proceedings concerning the Bank were as follows: • Legal actions filed by Banco Santander (Brasil) S.A. and other Group entities to avoid the application of Law 9.718/98, which modifies the basis to calculate Programa de Integraçao Social (PIS) and Contribuição para Financiamento da Seguridade Social (COFINS), extending it to all the entities income, and not only to the income from the provision of services. In relation of Banco Santander (Brasil) S.A. process, in 2015 the Federal Supreme Court (FSC) admitted the extraordinary appeal filed by the Federal Union regarding PIS, and dismissed the extraordinary appeal lodged by the Brazilian Public Prosecutor's Office regarding COFINS contribution, confirming the decision of Federal Regional Court favourable to Banco Santander (Brasil) S.A. of August 2007. The Federal Supreme Court also admitted the appeals related to the other Group entities both for PIS and COFINS. On June 13, 2023, the Federal Supreme Court ruled unfavorably 2 cases through General Repercussion (Theme 372), including Banco Santander (Brasil) S.A. case. The Bank has filed a new appeal, considering the possible loss as a contingent liability. The cases of the other Group entities are no longer susceptible of appeal and a provision has been recognized for the amount of the estimated loss. • Banco Santander (Brasil) S.A. and other Group companies in Brazil have appealed against the assessments issued by the Brazilian tax authorities questioning the deduction of loan losses in their income tax returns (Imposto sobre a Renda das Pessoas Jurídicas - IRPJ - and Contribuçao Social sobre o Lucro Liquido -CSLL-) in relation to different administrative processes of various years on the ground that the requirements under the applicable legislation were not met. The appeals, which involves several cases, are pending decision in different administrative and judicial instances. No provision was recognised in connection with the amount considered to be a contingent liability. • Banco Santander (Brasil) S.A. and other Group companies in Brazil are involved in administrative and legal proceedings against several municipalities that demand payment of the Service Tax on certain items of income from transactions not classified as provisions of services. There are several cases in different judicial instances. A provision was recognised in connection with the amount of the estimated loss. • Banco Santander (Brasil) S.A. and other Group companies in Brazil are involved in administrative and legal proceedings against the tax authorities in connection with the taxation for social security purposes of certain items which are not considered to be employee remuneration. There are several cases in different judicial instances. A provision was recognised in connection with the amount of the estimated loss. • In May 2003 the Brazilian tax authorities issued separate infringement notices against Santander Distribuidora de Títulos e Valores Mobiliarios, Ltda. (DTVM, actually Santander Brasil Tecnología S.A.) and Banco Santander (Brasil) S.A. in relation to the Provisional Tax on Financial Movements (Contribuição Provisória sobre Movimentação Financeira) of the years 2000 to 2002. The administrative discussion ended unfavourably for both companies, and on July 3, 2015, filed a lawsuit requesting the cancellation of both tax assessments. The lawsuit was judged unfavourably in first instance. Therefore, both plaintiffs appealed to the court of second instance. In December 2020, the appeal was decided unfavourably and the judgement was appealed before the higher courts. This case fell within the scope of the Comprehensive Transaction Programme (Programa de Transaçao Integral) established by the Ministry of Finance, and in 2025 a final settlement was reached. The amounts paid under the terms of the Transaction were fully provisioned. • In December 2010 the Brazilian tax authorities issued an infringement notice against Santander Seguros S.A. (Brasil), (currently Zurich Santander Brasil Seguros e Previdência S.A.), as the successor by merger to ABN AMRO Brasil dois Participações S.A., in relation to income tax (IRPJ and CSLL) for 2005, questioning the tax treatment applied to a sale of shares of Real Seguros, S.A. The administrative discussion ended unfavourably, and the CARF decision has been appealed at the Federal Justice. As the former parent of Santander Seguros S.A. (Brasil) (currently Zurich Santander Brasil Seguros e Previdência S.A.), Banco Santander (Brasil) S.A. is liable in the event of any adverse outcome of this proceeding. No provision was recognised in connection with this proceeding as it is considered to be a contingent liability. 111 • In November 2014 the Brazilian tax authorities issued an infringement notice against Banco Santander (Brasil) S.A. in relation to corporate income tax (IRPJ and CSLL) for 2009 questioning the tax-deductibility of the amortisation of the goodwill of Banco ABN AMRO Real S.A. performed prior to the absorption of this bank by Banco Santander (Brasil) S.A., but accepting the amortisation performed after the merger. The Bank appealed before the Higher Chamber of CARF, and a final favourable decision was obtained in April 2024. No provision was recognised in connection with this proceeding as it was considered to be a contingent liability. • Banco Santander (Brasil) S.A. has also appealed against infringement notices issued by the tax authorities questioning the tax deductibility of the amortisation of the goodwill arising on the acquisition of Banco Comercial e de Investimento Sudameris S.A from years 2007 to 2012. In May and October 2024, the appeal related to period 2009 to 2012 was finally rejected by the CARF and the resolution was appealed at the Federal Justice. No provision was recognised in connection with this matter as it was considered to be a contingent liability. • Banco Santander (Brasil) S.A. and other companies of the Group in Brazil are undergoing administrative and judicial procedures against Brazilian tax authorities for not admitting tax compensation with credits derived from other tax concepts, not having registered a provision for the amount considered to be a contingent liability. • Banco Santander (Brasil) S.A. is involved in appeals in relation to infringement notices initiated by tax authorities regarding the offsetting of tax losses in the CSLL of year 2009 and 2019. The appeals are pending decision at the administrative level. No provision was recognised in connection with this matter as it is considered to be a contingent liability. • Banco Santander (Brasil) S.A. filed a suspensive judicial measure aiming to avoid the withholding income tax (Imposto sobre a Renda Retido na Fonte - IRRF), on payments derived from technology services provided by Group foreign entities. A favorable decision was handed down and an appeal was filed by the tax authority at the Federal Regional Court, where it awaits judgment. No provision was recognized as it is considered to be a contingent liability. • Brazilian tax authorities have issued infringement notices against Getnet Adquirência e Serviços para Meios de Pagamento S.A and Banco Santander (Brasil) S.A. as jointly liable in relation to corporate income tax (IRPJ and CSLL) for 2014 to 2018 questioning the tax-deductibility of the amortization of the goodwill from the acquisition of Getnet Tecnologia  Proces S.A., considering that  the company would not have complied with the legal requirements for such amortization. The tax assessment notices were appealed to the CARF. In 2024, the CARF issued a favourable partial decision on both infraction notices. In December 2024, the tax authorities issued a new infringement notice for 2019 and 2020. No provision was recognized as it is considered to be a contingent liability. The total amount for the aforementioned Brazil lawsuits that are fully provisioned is EUR 553 million, and for lawsuits that qualify as contingent liabilities is EUR 5,040 million . At the date of approval of these annual accounts, there are other less significant tax disputes. ii. Non-tax-related proceedings At 31 December 2025 the main non-tax-related proceedings concerning the Group and the Bank were as follows: • Payment Protection Insurance (PPI): AXA France IARD and AXA France Vie (former GE Capital Corporation Group entities, known as Financial Insurance Company Ltd (FICL) and Financial Assurance Company Ltd (FACL), acquired by AXA SA in 2015) (together, AXA France) brought a claim against (i) Santander Cards UK Limited (formerly known as GE Capital Bank Limited (GECB), which was acquired by Banco Santander, S.A. in 2008 and subsequently transferred to Santander UK plc); and (ii) Santander Insurance Services UK Limited (a Banco Santander, S.A. subsidiary) (SISUK and together with GECB the Santander Entities). The claim relates to the allocation of liability for compensation and associated costs in respect of a large number of PPI policies distributed by GECB pre-2005, which were underwritten by FICL and FACL. On 25 July 2025, the Commercial Court of England and Wales handed down its judgment in relation to the claim brought by AXA France (the Judgment). It found against SISUK in relation to AXA France’s claim pursuant to an indemnity in an agency agreement entered into between GECB, FICL and FACL in 2000 and novated by GECB to SISUK in 2010.  It also found GECB negligent in the sale of PPI policies, but this element of the claim was time barred to PPI policies sold in the period between 2002 and 2005 and overlaps with the indemnity claim. The Judgment required the Santander Entities to pay GBP 515 millionplus interest of GBP162 million. 112 In October 2025 the Santander Entities obtained permission to appeal the findings in the Judgment relating to the application of the indemnity arising from PPI sales occurring before the indemnity had been agreed in December 2000 (Santander Appeal).  In January 2026, AXA France obtained permission to cross-appeal the Commercial Court’s rejection of AXA France’s contribution claim made under the Civil Liability (Contribution) Act 1978 (the AXA France’s cross appeal). A decision on the Santander Appeal and AXA France’s cross appeal is expected in the second half of 2026. With respect to the Santander Appeal and AXA France’s cross-appeal, there are points of legal interpretation to be resolved and, in the case of the cross-appeal, factual points to be determined. The significant uncertainties make it difficult to predict the timing or the final impact of the resolution of the appeals for the Group. No customers have suffered loss as a consequence of the claim brought by AXA France or the Judgment, nor does it impact upon past redress paid to customers for PPI complaints. • Motor Finance Broker Commissions: following the Financial Conduct Authority’s (FCA) Motor Market review in 2019 which resulted in a change in rules in January 2021, Santander Consumer (UK) plc (SCUK) has received several of county court claims and complaints in respect of its historical use of discretionary commission arrangements (DCAs) prior to the 2021 rule changes. In January 2024, the FCA commenced a review of the use of DCAs between lenders and credit brokers (the FCA Review). Pending the conclusion of its review, the FCA paused the handling of motor finance commission related complaints. The pause is currently in place until 31 May 2026, reflecting the extended timeline of the FCA's Review and subsequent Consultation (see below). After the Court of Appeal's decision rendered on 25 October 2024 within the judicial proceedings followed against DCAs of other financial entities, as of 31 December 2024, the Santander UK group Holdings recognised a provision of GBP 293.0 million (EUR 353.3 million) This provision was determined based upon the information then available. It included estimates for operational and legal costs and potential awards based on various scenarios and used a range of assumptions, including the possible outcome of the appeal to the Supreme Court in 2025 of the Court of Appeal's decision. On 1 August 2025, the Supreme Court handed down its judgment stating that motor dealers acting as credit brokers do not owe fiduciary or disinterested duties to their customers and, as a consequence, commission payments by lenders to motor dealers would not be unlawful on that basis. In addition, the Supreme Court held that an unfair relationship under s.140A of the Consumer Credit Act 1974 had arisen in one of the cases on its facts and awarded the amount of the commission paid by the lender plus interest at a commercial rate as the remedy. It also confirmed that the test for unfairness of the relationship with borrower was highly fact sensitive and it outlined a series of non-exhaustive factors to consider in assessing unfair relationships in this context (indicating that no or partial disclosure was not necessarily enough on its own to constitute an unfair relationship). Following the Supreme Court’s judgment, on 3 August 2025, the FCA announced that it aimed to publish a consultation on an industry wide redress scheme in early October (the Consultation). Further to the publication of the FCA’s Consultation on 7 October 2025, the Santander UK group submitted its comments on 12 December 2025 and continues to engage constructively with the FCA. The FCA has stated that its intention is to publish the industry wide redress scheme no later than in March 2026. 113 In light of the proposed sectoral scheme and taking into account the objections raised and the uncertainty surrounding both the final decision to be adopted by the FCA and the outcome of any potential legal challenges, the Santander UK group has reviewed the potential impact on SCUK in relation to the vehicle finance market. The range of scenarios has been updated, which has resulted in an additional estimated charge of GBP 183 million (EUR 213.6 million). As of 31 December 2025, the total provision amounts to GBP 461 million (EUR 528.1 million). This continues to include estimates for operational and legal costs and potential awards reflecting an increased likelihood of a higher number of cases than had previously been predicted as eligible for redress as well as an increased possibility that a remedy is sought to be imposed which extends beyond reversing any damaging financial consequences caused by any unfair relationships. The provision is based on various scenarios using a range of assumptions, including potential changes to the proposed scheme following responses to the Consultation or publication of the FCA’s final scheme rules. There continue to be significant uncertainties as to the nature, extent and timing of redress payments. Therefore, while the ultimate financial impact of this matter could materially differ from the amount of the provision as of this date, such impact is not expected to be material for the Group as of the date of these financial statements. • Delforca: dispute arising from equity swaps entered into by Gaesco (now Delforca 2008, S.A. (Delforca)) on shares of Inmobiliaria Colonial, S.A. Banco Santander, S.A. is claiming to Delforca before the Court of Barcelona in charge of the bankruptcy proceedings, a total of EUR 66 million from the liquidation resulting from the early termination of financial transactions due to Delforca's non-payment of the equity swaps. In the same bankruptcy proceedings, Delforca and Mobiliaria Monesa, S.A., parent of Delforca (Monesa) have in turn claimed the Bank to repay EUR 57 million, which the Bank received for the enforcement of the agreed guarantee, as a result of the aforementioned liquidation. On 16 September 2021 the Commercial Court Number 10 of Barcelona has ordered Delforca to pay the Bank EUR 66 million plus EUR 11 million in interest and has dismissed the claims filed by Delforca. This decision was appealed by Delforca, Monesa and the bankruptcy administrator. On 15 November 2023 the Provincial Court of Barcelona rendered a judgment dismissing the appeals filed by Delforca, Monesa and the bankruptcy administrator. Delforca and Monesa (not the bankruptcy administrator) filed an appeal in cassation, that was rejected in November 2025 by the First Chamber of Supreme Court and, as a result, the appeal and first instance judgments in favor of the Bank have been confirmed. Separately, Monesa, filed in 2009 a civil procedure with the Courts of Santander against the Bank claiming damages that have not been specified to date. The procedure is suspended. • Planos Económicos': like the rest of the banking system in Brazil, Santander Brazil has been the target of customer complaints and collective civil suits stemming mainly from legislative changes and its application to the retribution of bank deposits (economic plans). At the end of 2017, an agreement was reached between regulatory entities and the Brazilian Federation of Banks (Febraban) with the purpose of closing the lawsuits and was approved by the Supremo Tribunal Federal (the STF and the Collective Agreement). Discussions focused on specifying the amount to be paid to each affected client according to the balance in their notebook at the time of the application of the plan. Finally, the total value of the payments will depend on the number of adhesions there may be and the number of savers who have proved the existence of the account and its balance on the date the indexes were changed. In November 2018, the STF ordered the suspension of all economic plan proceedings for two years from May 2018. On 29 May 2020,  STF approved the extension of the Collective Agreement for 5 additional years starting from 3 June 2020. Condition for this extension was to include in the Collective Agreement actions related to the 'Collor I Plan'. On May 2025, the STF issued the judgment recognizing the constitutionality of the Bresser, Verão, Collor I and II plans, guaranteeing savers the receipt of the amounts established in the Collective Agreement and setting a deadline of 24 months for new adhesions. As of 31 December 2025, the provision recorded for the economic plan proceedings amounts to EUR 155.3 million. • Banco Popular´s acquisition: after the declaration of the resolution of Banco Popular, some investors filed claims against the EU’s Single Resolution Board decision, and the FROB's resolution executed in accordance with the aforementioned decision. Likewise, numerous civil lawsuits were filed against Banco Santander, S.A. alleging that the information provided by Banco Popular was erroneous and requesting from Banco Santander, S.A. the restitution of the price paid for the acquisition of the investment instruments or, where appropriate, the corresponding compensation. In relation to the direct appeals filed before the General Court of the European Union (EGC) and the Court of Justice of the European Union (CJEU), all appeals were either dismissed or discontinued. Currently there are no ongoing a ppeals. On 4 February 2026, the National Court issued its first rulings dismissing the actions brought against the FROB’s decision, in application of the judgments of the EGC and the CJEU. 114 In the civil proceedings, several Spanish judges referred to the CJEU a number of preliminary questions that have already been resolved. In particular, in the judgments of 5 May 2022 (C-410/20) and 5 September 2024 (C-775/22, C-779/22, C-794/22), the CJEU stated that Directive 2014/59/EU on bank resolution prevents shareholders, subordinated debt holders, and holders of equity instruments converted into shares bringing actions against a financial institution subject to a resolution proceeding or against its successor after the resolution, claiming liability for the information contained in the prospectus, under Directive 2003/71/ EC, or actions seeking the nullity of the contract of subscription of capital instruments, which, given its retroactive effects, would result in the refund of the value of such securities, plus the interest accrued as of the date of execution of the contract. In its 11 September 2025 resolution (C-687/23), the CJEU declared that the above referred TJUE resolutions do not apply to actions pursued prior to the entity’s resolution. There are currently no other preliminary questions under consideration. On 4 March 2024, in the context of preliminary proceedings 42/2017, the Central Court of Instruction No. 4 issued a ruling transforming the proceedings into Summary Proceedings and terminating the investigation phase. This ruling considers that the circumstantial evidence resulting from the investigation which could constitute a crime is basically the following: (i) an alleged misrepresentation in the prospectus of the 2016 capital increase of Banco Popular; (ii) an alleged misrepresentation in the annual accounts of Banco Popular for 2015, the interim financial statements for 2016 and the annual accounts for 2016; and (iii) the offer to the market of a distorted amount of regulatory capital, after the capital increase of 2016 (for allegedly having been granted by Banco Popular financing to clients for the subscription of shares in the aforementioned capital increase, without discounting it from the regulatory capital). According to the aforementioned ruling, these facts could constitute the crimes of fraud of investors (art. 282 of the Criminal Code) and accounting falsehood (art. 290 of the Criminal Code). All appeals filed against the ruling have been dismissed. The accusing parties, including the Public Prosecutor's Office, filed their indictment briefs on 28 October 2024, which included requests for compensation for civil liability and the request that not only the defendants but also several entities are held liable for such compensation, including Banco Santander, S.A., the auditing firm and several insurance companies. Following the filing of the indictment briefs, on 22 November 2024, the Court (Investigating Judge) issued an order for the opening of the oral trial against the defendants and civil liability parties, including Banco Santander, S.A. as a possible civil liable party. However, in line with what was determined by the Spanish National Court and confirmed by the Supreme Court concerning the hypothetical succession of Banco Popular by Banco Santander, S.A., the oral trial has not been opened against the Bank as possible direct civil liable party. The order to open the oral trial states that the plaintiffs have requested compensation for civil liability for a total amount of EUR 2,277.65. Additionally, the order rejects the imposition of the guarantee requested by several of the accusing parties, considering that it is unnecessary to secure the outcome of the trial. The defendants and potential civil liable parties submitted their defense writs on 4 February 2025. After that, the proceedings will be forwarded to the Criminal Chamber of the National Court for the oral trial. Regarding civil liability, the Bank considers that it has no subsidiary civil liability in light of the CJEU’s judgments of 5 May 2022 (C-410/20), 5 September 2024 (C-775/22, C-779/22, C-794/22) and 11 September 2025 (C-687/23 and C-447/23). Notwithstanding the foregoing, the Spanish National Court has stated that this issue shall be resolved within the ongoing proceedings. The estimated cost of any compensation to shareholders and bondholders of Banco Popular recognized in the 2017 accounts amounted to EUR 680 million, of which EUR 535 million were applied to the commercial loyalty program. On 15 December 2024, Banco Santander, S.A., proceeded to redeem in advance voluntarily all bonds in circulation regarding such commercial action. The CJEU judgements of 5 May 2022 (C-410/20), 5 September 2024 (C-775/22, C-779/22, C-794/22) and 11 September 2025 (C-687/23 and C-447/23) referred above, represented a very significant reduction in the risk associated with these claims. 115 • German shares investigation: the Cologne Public Prosecution Office is conducting an investigation against the Bank and other group entities based in the UK - Santander UK plc, Santander Financial Services Plc and Cater Allen International Limited -, in relation to a particular type of tax dividend linked transactions known as cum-ex transactions. The Group is cooperating with the German authorities. According to the state of the investigations, the result, and the effects for the Group, which may potentially include the imposition of material financial consequences (penalties, and/or disgorgement of proceeds) cannot be anticipated. For this reason, the Bank has not recognized any provisions in relation to the potential imposition of financial liabilities. • Banco Santander, S.A. was sued in a legal proceeding in which the plaintiff alleges that the Bank breached his contract as CEO of the institution: in the lawsuit, the claimant mainly requested a declaratory ruling upholding the existence, validity and effectiveness of such contract and its enforcement together with the payment of certain amounts. For the case that the main request is not granted, the claimant sought a compensation for a total amount of approximately EUR 112 million or, an alternative relief for other minor amounts. Banco Santander, S.A. answered to the legal action stating that the conditions to which the appointment of that position was subject to were not met; that the executive services contract required by law was not concluded; and that in any case, the parties could terminate the contract without any justified cause. On 17 May 2021, the plaintiff reduced his claims for compensation to EUR 61.9 million. On 9 December 2021, the Court upheld the claim and ordered the Bank to compensate the claimant in the amount of EUR 67.8 million. By court order of 13 January 2022, the Court corrected and supplemented its judgment, reducing the total amount to be paid by the Bank to EUR 51.4 million and clarifying that part of this amount (buy out) was to be paid under the terms of the offer letter, i.e., entirely in Banco Santander shares, within the deferral period for this type of remuneration at the plaintiff's former employer and subject to the performance metrics or parameters of the plan in force at the Bank, which was that of 2018. As explained in note 5 of the report of the consolidated annual accounts of the year 2022, the degree of performance of these objectives was 33.3%. The Bank filed an appeal against the judgment before the Madrid Court of Appeal, which was opposed by the plaintiff. At the same time, the plaintiff filed an application for provisional enforcement of the judgment in the First Instance Court. A court order was issued ordering enforcement of the judgment, and the Bank deposited in the court bank account the full amount provisionally awarded to the claimant, including interest, for an approximate sum of EUR 35.5 million, within the voluntary compliance period. On 6 February 2023, Banco Santander was notified with the judgment of 20 January 2023 by which the Madrid Court of Appeal partially upheld the appeal filed by the Bank. The judgment has reduced the amount to be paid by EUR 8 million, which, to the extent that this amount was already paid in the provisional partial enforcement of the judgement of First Instance Court, must be returned to the Bank together with other amounts for interest, which the appeal judgement also rejects. The plaintiff deposited circa EUR 9.6 million. This amount was received by the Bank on 11 July 2023. On 11 April 2023, the Bank filed an extraordinary appeal for procedural infringement and an appeal in cassation against the Madrid Court of Appeal’s judgment before Spanish Supreme Court. The extraordinary and cassation appeals submitted by the Bank were accepted on 26 March 2025 and are pending to be resolved. Existing provisions cover the estimated risk of loss. • CHF Polish Mortgage Loans: In  October 2019, the CJEU rendered its decision in relation to the effects of the potential unfairness of certain contractual clauses in CHF-Indexed loan agreements. The CJEU established that it for the national courts to determine the invalidity of a contract where it cannot be maintained without the clause declared unfair and where no supplementary provisions exist that would allow the contract to be maintained. In April 2024, the Civil Chamber of the Polish Supreme Court issued a judgment confirming that clauses relating to the mechanism for determining the exchange rate declared abusive cannot be replaced by alternative provisions and that, in the absence of a binding exchange rate, the contract is not enforceable for the parties. With regard to the effects of invalidity, the Supreme Court confirmed the existence of independent restitution claims for each party and ruled out the possibility of claiming interest or other amounts for the use of the funds. Nevertheless, certain aspects of this judgment have been subject to internal debate within the Supreme Court itself, reflecting the complexity and evolving nature of the jurisprudential framework 116 In this context, Santander Bank Polska S.A. and Santander Consumer Bank S.A. estimate legal risk using a model that considers different possible outcomes and regularly review court rulings on this matter in order to assess changes in case law, including the impact of the aforementioned Supreme Court judgment. Settlements are being reached both with customers who have already initiated legal proceedings and with customers who have not yet filed a claim. The model used to calculate provisions for legal risks considers the evolution and expected development of such settlements. As of 31 December 2025, the total amount adjusted against the gross carrying amount of loans in accordance with IFRS 9, together with the provisions recognised under IAS 37, amounts to PLN 5,874.3 million (EUR 1,391.9 million)of which PLN3,191.7 million (EUR 756.3 million) corresponds to adjustments to the gross carrying amount under IFRS 9 and PLN 2,682.6 million (EUR 635.6 million) to provisions recognised under IAS 37. The adjustment to gross carrying amount in accordance with IFRS9 during 2025 amounted to PLN 99.7 million (EUR 23.6 million), and the additional provisions recognised under IAS 37 amounted to PLN 1245.3 million (EUR 293.8 million). Other costs related to the dispute amounted to PLN 730.5 million (EUR 172.4 million). IAS 37. As of the same date, Santander Bank Polska S.A. held a portfolio of mortgages denominated in or indexed to CHF amounting to approximately PLN 2,642.0 million (EUR 626.0 million) and recognised provisions of PLN 4,766.4 million (EUR 1,129.4 million) to cover the CHF mortgage portfolio. Santander Consumer Bank S.A. (Poland), in turn, held a portfolio of mortgages denominated in or indexed to CHF amounting to approximately PLN 735.9 million (EUR 174.4 million) and recognised provisions of PLN 1,107.9 million (EUR 262.5 million) to cover this portfolio. Notwithstanding the above, as detailed in Note 3 b), in January 2026 the Group sold a 49% stake in Santander Bank Polska S.A., which ceased to be consolidated within the Group’s perimeter as of that date. The Group continues to monitor the evolution of legal proceedings and to periodically review the adequacy of the provisions recognised, which represent the best estimate of the risk existing as of the reporting date. • Banco Santander Mexico: dispute regarding a testamentary trust constituted in 1994 by Mr. Roberto Garza Sada in Banca Serfin (currently Santander Mexico) in favor of his four sons in which he affected shares of Alfa, S.A.B. de C.V. (respectively, Alfa and the Trust). During 1999, Mr. Roberto Garza Sada instructed Santander México in its capacity as trustee to transfer 36,700,000 shares from the Trust's assets to his sons and daughters and himself. These instructions were ratified in 2004 by Mr. Roberto Garza Sada before a Notary Public. Mr. Roberto Garza Sada passed away on 14 August 2010 and subsequently, in 2012, his daughters filed a complaint against Santander Mexico alleging it had been negligent in its trustee role. The lawsuit was dismissed at first instance in April 2017 and on appeal in 2018. In May 2018, the plaintiffs filed an appeal (recurso de amparo) before the First Collegiate Court of the Fourth Circuit based in Nuevo León, which ruled in favor of the plaintiffs on 7 May 2021, annulling the 2018 appeal judgment and condemning Santander Mexico to the petitions claimed, consisting of the recovery of the amount of 36,700,000 Alfa shares, together with dividends, interest and damages. Since 2021, Santander Mexico has filed before the Supreme Court of Justice of the Nation a constitutional review challenge (recurso de revisión constitucional) against the referred decision which was initially rejected by the Supreme Court; and several appeals (recursos de reclamación) against such rejection. On 25 June 2025, one of the appeals filed by the Bank was accepted, and this decision was extended to a remaining one, which will now be resolved. In case that these appeals are resolved favorably to the Bank, the Supreme Court will decide on the merits of the constitutional review against the judgment which condemned the Bank. In parallel to the foregoing, the Bank also filed an amparo against the judgment favorable to the plaintiffs rendered by the First District Court in the State of Nuevo León before the Collegiate Courts if such State, and in 2024, the Bank requested the Supreme Court of Justice of the Nation to take up and resolve the matter through the faculty of attraction, what is pending. The challenges and appeals filed by the Bank imply that the judgment rendered in favour of the plaintiffs is not final, and Santander México believes that the actions taken should prevail and reverse the decision against it. The impact of a potential unfavorable resolution for Santander México will be determined in a subsequent proceeding and will also depend on the additional actions that Santander México may take in its defense, so it is not possible to determine it at this time. At the current stage of the proceedings, the provisions recorded are considered sufficient to cover the risks deriving from this claim. 117 • Mortgage Expenses: in December 2015 the Spanish Supreme Court ruled that mortgage clauses relating to the payment of fees associated to formalizing the mortgage were abusive. On 27 November 2018, the Supreme Court agreed that the taxpayer of the documented legal acts stamp duty tax (IAJD) on the mortgage loans should be the borrower. On 9 November 2018, RDL 17/2018 came into force and modified the Law of the IAJD, establishing that the taxpayer is the Bank. On 23 January 2019, the Supreme Court ruled the distribution of the same must be 50% between the Bank and the borrower in public notary expenses and agency expenses.  The Supreme Court also ruled that the Bank must pay 100% of the Registry. On 26 October 2020, the Supreme Court ruled that the Bank is fully responsible for the management expenses; and on 27 January 2021, the Supreme Court ruled that the Bank is also responsible for the valuation expenses. In relation to the statute of limitations, on 25 April 2024, two  judgments were rendered (cases C-561/21 and C-484/21) in which the Court of Justice of the European Union (CJEU) stated that the commencement of the statute of limitations for the reimbursement action of the mortgage expenses derived from the annulment of the clause, shall be fixed on the moment when the consumer has an effective knowledge of the abusive nature of the clause and its effects and that this date must not be fixed (a) on the date of payment of such expense nor of the execution of the agreement; (b) when the Supreme Court has handed down judgments stating the abusive nature of a clause similar to the one included in the consumer contract; nor (c) when the CJEU has handed down judgments confirming that the statute of limitations for the reimbursement action of the amounts derived from the annulment of contractual provisions is valid subject to its compliance with the principles of equivalence and effectiveness. The Supreme Court has confirmed this criterion in its 14 June 2024 judgment, establishing that the public dissemination of case-law declaring the abusive nature of a clause does not necessarily give rise to the limitation period of the reimbursement action derived from similar clauses. However, the 4 July 2024 judgment, rendered in the case C-450/22, the CJEU has established that it cannot be excluded a priori that, as a consequence of the occurrence of an objective event or of a notorious event, such as the amendment of the applicable legislation or a widely disseminated and debated development of jurisprudence, the court considers that the average consumer's overall perception of the floor clause has changed during the reference period and has enabled him to become aware of the potentially significant economic consequences arising from such clause. A further preliminary question concerning the statute of limitations of the reimbursement action derived from the annulment of mortgage expenses has been raised before the CJEU by the First Instance Court No 8 of La Coruña. In December in 2024, the Supreme Court handed down two additional judgments regarding statute of limitations, in which it determines that the date to be considered for the purposes of the application of Directive 93/1994 and, consequently, the statute of limitations detailed in its previous judgments, is 31 December 1994 (i.e. the date when the deadline for its transposition ended). This is based on the principle of interpretation in accordance with directives not transposed (applicable once their transposition period has expired). The recorded provision includes the best estimate of Group’s liability for this matter. Banco Santander and the other Group companies are subject to claims and, therefore, are party to certain judicial and administrative proceedings incidental to the normal course of their business including those in connection with lending activities, relationships with employees and other commercial or tax matters additional to those referred to here. With the information available to it, the Bank considers that, at 31 December 2025, it had reliably estimated the obligations associated with each proceeding and had recognized, where necessary, sufficient provisions to cover reasonably any liabilities that may arise as a result of these tax and legal risks. Disputes in which risk and/or provisions have been registered but are not disclosed is justified on the basis that it would be prejudicial to the proper defense of the Bank. Subject to the qualifications made, it also believes that any liability arising from such claims and proceedings will not have, overall, a material adverse effect on the Bank’s business, financial position, or results of operations. 118 24. Tax matters a #### ) Consolidated Tax Group According to current Spanish regulation, the Tax Consolidated Group includes Banco Santander, S.A. as the parent company and, as subsidiaries, those Spanish subsidiaries that meet the requirements established by the regulations on the taxation of consolidated groups. #### b) Years open for review by the tax authorities In connection with the partial review of Corporate Income Tax for the 2020 financial year and Value Added Tax for the 2020 to 2022 financial years, initiated in April 2024, in December 2025 the Spanish tax authorities issued an assessment for Corporate Income Tax, which has been appealed before the Central Economic‑Administrative Court, while at the year‑end the statements relating to Value Added Tax remained pending. The main appeals filed against the assessments issued in previous reviews remain pending before the Central Economic‑Administrative Court (Corporate Income Tax and Value Added Tax for the 2017 to 2019 financial years) and before the National High Court (Corporate Income Tax for the 2003 to 2015 financial years). Banco Santander, S.A., as the parent company of the Consolidated Tax Group, considers, based on the advice of its external legal advisers, that the adjustments made should not have a significant impact on these annual accounts, and there are solid grounds for defence in the appeals filed against these assessments. Consequently, no provision has been recognised for these matters. In addition, where considered appropriate, the mechanisms provided for the avoidance of international double taxation have been applied. As at the date of authorisation of these annual accounts, subsequent financial years up to and including 2025 remain subject to review. Due to potential different interpretations that may be given to tax legislation, the results of tax inspections by the authorities for the remaining years under review may give rise to contingent tax liabilities whose amount cannot be objectively quantified. However, in the opinion of the Bank's tax advisers, the likelihood of such tax liabilities materialising is remote and, in any case, any tax liability arising would not have a significant effect on the Bank's annual accounts. c) Reconciliation The reconciliation between the Corporate Income Tax expense calculated at the applicable tax rate (30%) and the expense recognised for this tax is shown below (amounts in millions of euros): | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Profit before tax | 12,186 | 11,192 | | From continuing operations | 11,165 | 10,257 | | From discontinued operations | 1,021 | 935 | | Income tax at tax rate applicable in Spain (30%) | 3,656 | 3,358 | | Dividends and capital gains | (2,081) | (2,354) | | Impairment losses | (494) | (8) | | Global Minimum Tax Pillar Two | 4 | 8 | | Remaining permanent differences and others | (12) | 71 | | Tax expense or income from continuing operations | 1,073 | 1,091 | d) Tax recognized in equity Independently of taxes on profit charged to the income statement, the Bank has charged the following amounts to equity for the items indicated below during 2025 and 2024 : | | | | | --- | --- | --- | | | | | | EUR million | | | | | Amounts receivable/ (Amounts payable) | | | | 2025 | 2024 | | Fair value changes of debt instruments measured at fair value with changes in other comprehensive income | 12 | (9) | | Equity instruments valued at fair value with changes in other comprehensive income | (6) | 2 | | Cash flow hedges | 30 | (123) | | Other valuation adjustments (note 25) | (102) | (209) | | Total | (66) | (339) | 119 #### e) Deferred taxes The balance of the Deferred tax assets caption in the balance sheet includes debit balances with the Tax Authorities corresponding to anticipated corporate tax. Likewise, the balance of the Deferred tax liabilities caption includes the liability corresponding to the different deferred taxes of the Bank. In accordance with Regulation (EU) No 575/2013 on prudential requirements for credit institutions and investment firms (CRR), as subsequently amended by Regulation (EU) 2019/876 of the European Parliament and of the Council, deferred tax assets the utilisation of which does not depend on the generation of future profits (hereinafter referred to as monetisable deferred tax assets) that meet certain conditions shall not be deducted from regulatory capital nor be risk‑weighted at 250% in accordance with the thresholds established in Article 48 of that Regulation, but shall consume risk‑weighted assets at 100% in accordance with Article 39. The following is a breakdown of deferred tax assets and liabilities as at 31 December 2025 and 2024: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Tax assets: | 10,148 | 10,353 | | Current | 4,392 | 4,332 | | Deferred | 5,756 | 6,021 | | Of which | | | | Relating to pensionsA | 2,205 | 2,384 | | Relating to allowances for loan lossesA | 2,007 | 2,007 | | Relating to deductions and negative tax bases | 681 | 681 | | Tax liabilities: | 2,672 | 2,168 | | Of which, deferred tax liabilities | 2,039 | 1,978 | A. These tax assets are considered realizable.In 2023, the Spanish Economic Administrative Court ruled that in 2017 the requirements for the conversion of part of the monetizable assets of Popular Group into a credit against the Tax Administration were met, allowing the conversion to EUR 995 million . Banco Santander was refunded without impact on results. The favourable Economic Administrative Court decision was declared harmful to the public interests and challenged at the National Appellate Court by the Tax Administration. The estimation of this appeal, which is pending at the National Appellate Court,  would imply that Grupo Santander should repay the amount refunded and would, once again, credit these monetizable assets with no impact on results except for late payment interests. However, it is considered that there are strong defense arguments in relation to this appeal. At the accounting close, deferred taxes, both assets and liabilities, are reviewed in order to determine whether any adjustments to them are necessary in accordance with the results of such analyses. These analyses take into account all positive and negative evidence of the recoverability of such assets, including, among others, (i) results generated in prior years, (ii) projections of results, (iii) the estimated reversal of the different temporary differences according to their nature, and (iv) the period and limits established in current legislation for the recovery of the different deferred tax assets, thereby concluding on the Bank's ability to recover its recognised deferred tax assets. The result projections used in this analysis are based on the financial planning approved both by the local management of the corresponding units and by the administrators of Banco Santander. The Group's planning process is common to all units, including the Bank. Group management prepares its financial budgets based on the following key assumptions: a. Microeconomic variables of the entities forming the tax group in each location: the existing balance‑sheet structure, the product mix offered and the commercial strategy at any given time defined by local management are taken into account in this respect, based on the competitive, regulatory and market environment. b. Macroeconomic variables: the estimated growth rates are supported by the expected evolution of the economic environment, taking into account the expected behaviour of GDP in each location and forecasts for interest rates, inflation and exchange rates. Such data are provided by the Group's Economic Research Department. In addition, the Group conducts backtesting of the variables projected in the past. The differential behaviour of those variables compared to the actual market data is taken into consideration in the projections estimated for each year. Thus, in relation to Spain, deviations identified by Management in recent past years are due to a combination of exogenous elements, mainly the changing effect of the macroeconomic and competitive environment, and management actions, such as the acceleration of restructuring plans, investment in digitalisation, and optimisation of capital and shareholder returns. Finally, given the degree of uncertainty of these assumptions regarding the aforementioned variables, the Group performs a sensitivity analysis of the most significant ones used in the recoverability assessment of deferred tax assets, considering reasonable changes in the key assumptions on which the profit projections of each entity or tax group and the estimated reversal of the different temporary differences are based. 120 In relation to Spain, the sensitivity analysis consisted of applying reasonable changes to the key assumptions, including adjusting growth (GDP) by 50 basis points and inflation by 50 basis points. After this analysis, the maximum recoverability period of the deferred tax assets recognised at 31 December 2025 remains at 15 years. In addition, the Tax Group in Spain, of which Banco Santander, S.A. is the parent company, has not recognised deferred tax assets of approximately EUR 11,030 million, of which EUR 6,280 million correspond to tax loss carryforwards, EUR 3,370 million to tax credits and EUR 1,380 million to other items. #### f) Global Minimum Tax (Pillar II of the OECD #### Inclusive Framework) The model rules for the Global Minimum Tax, known as Pillar Two and approved in 2021 by the OECD Inclusive Framework, require multinational groups with revenue exceeding EUR 750 million to pay a minimum rate of 15% on adjusted accounting profit, calculated on a jurisdiction‑by‑jurisdiction basis. The OECD has completed these rules by approving administrative guidance and a document on transitional safe harbours applicable during the first three years. In January 2026 the transitional safe harbours were extended for one further year and new definitive safe harbours were approved with the aim of simplifying the application of the model rules and implementing the 'side‑by‑side' coexistence agreement reached in June 2025 within the G7, which will be applicable from 2026 to multinational groups with a US parent entity. In the European Union, in December 2022 the Council approved Directive 2022/2523 on ensuring a global minimum level of taxation for multinational enterprise groups and large domestic groups in the Union, establishing 1 January 2024 as the effective date for the new minimum taxation. The Directive implements the Pillar Two rules of the OECD Inclusive Framework within the European Union, although its scope also extends to large domestic groups. In Spain, on 20 December 2024 Law 7/2024 was approved, establishing a Complementary Tax to ensure a global minimum level of taxation for multinational groups and large domestic groups, with effect from 1 January 2024. This Law transposes Directive 2022/2523 and also establishes a national complementary tax aligned with the Pillar Two rules. In April 2025, Royal Decree 252/2025 was published approving the implementing Regulation of the Law. Regarding other jurisdictions, the rules of the new global minimum taxation are already in force in most of the main geographies in which the Group operates, with the exception of Mexico, Chile and Argentina. The Pillar Two rules require the calculation, in each jurisdiction in which the Group operates, of the rate resulting from relating tax expense to accounting profit, both with certain adjustments. If that rate in a jurisdiction is below 15%, Banco Santander, as ultimate parent entity, must pay the difference as a top‑up tax to the Spanish Tax Authorities, unless a qualified domestic minimum top‑up tax has been enacted in that jurisdiction, in which case the top‑up tax is paid to the local Tax Authorities. Both Banco Santander, S.A., as ultimate parent, and the subsidiaries resident in jurisdictions that have enacted a qualified domestic minimum top‑up tax, have estimated the accrued top‑up taxes taking into account the application of the transitional safe harbours for the 2024 and 2025 financial years. These safe harbours mean that the top‑up tax, whether in the parent entity or in jurisdictions that have enacted a qualified domestic minimum top‑up tax, is not due provided that any of the following circumstances apply: (i) the effective rate calculated from the country‑by‑country report data exceeds 15% in 2024, 16% in 2025 and 17% in 2026, (ii) the Group's presence in a jurisdiction is not significant, understood as revenue below €10 million and profit before tax below €1 million, or (iii) profit before tax is less than the sum of tangible assets and payroll costs weighted by a percentage that varies annually. The top‑up tax expense recognised by Banco Santander has not been significant, since the effective tax rates calculated under the Pillar Two rules in the majority of the jurisdictions in which the Group operates are above 15%. Nevertheless, the new rules require the provision of a large amount of information to the Tax Authorities in the different jurisdictions in which the Group operates, broken down by entity, which represents a significant administrative burden. #### g ) Regulatory changes The following significant tax reforms have been approved in 2025 and prior financial years: In Spain, in 2022 Law 38/2022 was approved, which established a temporary levy applicable to credit institutions and financial credit establishments for the 2023 and 2024 financial years, the amount of which was 4.8% of the sum of net interest margin and net fees of the previous year derived from activity carried out in Spain. The obligation to pay arose on the first day of each financial year. The charge recognised for this temporary levy amounted to €189 million in 2023 and €290 million in 2024, although the Tax Authorities have audited both years and consider that an additional amount may be payable as a result of discrepancies in the criteria applied in determining the tax base, which are being discussed by the Bank. In addition, that law established for 2023 the 50% limitation on the consolidation of negative individual tax bases into the tax base of the Consolidated Tax Group, setting a 10‑year period for the reversal of this positive adjustment. 121 On 20 December 2024 Law 7/2024 was approved which, among other tax measures, established a tax on the margin of interest and fees of certain financial entities obtained in Spanish territory with accrual on 1 January of the 2025, 2026 and 2027 financial years. The tax base, with some modifications compared with the temporary levy, is now calculated at an individual level for each financial entity and the rate is determined according to a scale of rates between 1% and 7%, applying certain deductions. On 24 December 2024 Royal Decree‑Law 9/2024 was published in the Official State Gazette, which amended certain technical aspects of the tax, postponing its accrual to 31 January of those years. This Royal Decree‑Law was repealed on 22 January 2025, so no charge was recognised for the new tax corresponding to 2024 revenues in accordance with the legislation in force at that time (during the year €390 million was paid). In 2025, the expense corresponding to income accrued during the year, recognised as income tax, amounts to EUR 351 million and will be paid in 2026. Banco Santander considers that both the temporary levy and the tax on the margin of interest and fees are contrary to constitutional principles and European Union law and has challenged the corresponding self‑assessments, requesting the refund of the amounts paid. In addition, Law 7/2024 again establishes for the 2024 and 2025 financial years the 50% limitation on the consolidation of negative individual tax bases into the tax base of the Consolidated Tax Group, setting a 10‑year period for the reversal of this positive adjustment. Likewise, this Law reintroduces the limits provided for in Royal Decree‑Law 3/2016 (which was declared unconstitutional by judgment of the Constitutional Court of 18 January 2024) for the consolidation of monetisable deferred tax assets and the offsetting of tax loss carryforwards (the limit is reduced from 70% to 25%) and the application of deductions to avoid double taxation (50%), as well as the obligation to reverse impairments of investments that were deductible in past years by third parties, irrespective of the recovery of value of the investees. h ) Other information In compliance with the disclosure requirement set out in the Listing Rules Instrument 2005 issued by the UK Financial Conduct Authority, it is stated that shareholders of the Bank who are resident in the United Kingdom will have the right to claim a tax credit for foreign tax paid in respect of the withholdings the Bank is required to operate on dividends to be paid to such shareholders if the total dividend income exceeds the exempt amount of £500 for the 2025/2026 financial year (£500 for the 2024/2025 financial year). Shareholders of the Bank resident in the United Kingdom who hold their interest in the Bank through Santander Nominee Service will be provided directly with information on the amount withheld, as well as any other information they may need to complete their UK tax returns. Other shareholders of the Bank resident in the United Kingdom should contact their bank or stockbroker. Banco Santander, S.A. is a member of the Forum of Large Companies and has adhered to the Code of Good Tax Practices in Spain since 2010, actively participating in the cooperative compliance programmes being developed by the Tax Authorities in both cases. 25. Other comprehensive #### income The balances of 'Other comprehensive income' include the amounts, net of the related tax effect, of the adjustments to assets and liabilities recognised in equity through the statement of recognised income and expense. Respect to items that may be reclassified to profit or loss, the statement of recognised income and expense includes changes in other comprehensive income as follows: • Revaluation gains (losses): includes the amount of the income, net of the expenses incurred in the year, recognised directly in equity. The amounts recognised in equity in the year remain under this item, even if in the same year they are transferred to the income statement or to the initial carrying amount of the assets or liabilities or are reclassified to another line item. 122 • Amounts transferred to income statement: includes the amount of the revaluation gains and losses previously recognised in equity, even in the same year, which are recognised in the income statement. • Amounts transferred to initial carrying amount of hedged items: includes the amount of the revaluation gains and losses previously recognised in equity, even in the same year, which are recognised in the initial carrying amount of assets or liabilities as a result of cash flow hedges. • Other reclassifications: includes the amount of the transfers made in the year between the different 'Other comprehensive income' items. a) Breakdown of Other accumulated comprehensive income - Items that will not be reclassified in results and Items that can be classified in results | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Other accumulated comprehensive income | (1,311) | (1,555) | | Items that will not be reclassified in results | (1,325) | (1,669) | | Actuarial gains and losses on defined benefit pension plans | (484) | (827) | | Non-current assets held for sale | — | — | | Changes in the fair value of equity instruments measured at fair value through other comprehensive income | (822) | (919) | | Ineffectiveness  of fair value hedges of equity instruments measured at fair value with changes in other comprehensive income | — | — | | Changes in the fair value of equity instruments measured at fair value through other comprehensive income (hedged item) | 203 | 279 | | Changes in the fair value of equity instruments measured at fair value through other comprehensive income (hedging instrument) | (203) | (279) | | Changes in the fair value of financial liabilities at fair value through profit or loss attributable to changes in credit risk | (19) | 77 | | Items that can be classified in results | 14 | 114 | | Hedges of net investments in foreign operations (effective portion) | 283 | — | | Exchange differences | (299) | — | | Cash flow hedges (effective portion) | 35 | 104 | | Changes in the fair value of debt instruments measured at fair value through changes in other comprehensive income | (5) | 10 | | Hedging instruments (items not designated) | — | — | | Non-current assets held for sale | — | — | b) Other accumulated comprehensive income- Items not reclassified to profit or loss – Actuarial gains or losses on defined benefit pension plans 'Other comprehensive income  —Items not reclassified to profit or loss—  Actuarial gains or losses on defined benefit pension plans' include the actuarial gains and losses and the return on plan assets, less the administrative expenses and taxes inherent to the plan, and any change in the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability (asset), attributed to the group net of taxes. Its variation is shown in the statement of recognised income and expense. 123 c) Other accumulated comprehensive income - Items that will not be reclassified in results - Changes in the fair value of equity instruments measured at fair value with changes in other comprehensive income. Includes the net amount of unrealized fair value changes of equity instruments at fair value with changes in other comprehensive income. The following is a breakdown of the composition of the balance as of 31 December 2025 and 2024 under ‘Other accumulated comprehensive income - Items that will not be reclassified to profit or loss - Changes in the fair value of equity instruments measured at fair value with changes in other global result‘ (see note 8): | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | EUR million | | | | | | | | | | | 2025 | | | | 2024 | | | | | | Capital gains by valuation | Capital losses by valuation | Net gains/ losses by valuation | Fair value | Capital gains by valuation | Capital losses by valuation | Net gains/ losses by valuation | Fair value | | Equity instruments | 475 | (1,297) | (822) | 1,283 | 382 | (1,301) | (919) | 1,245 | Since the entry into force of Bank of Spain Circular 4/2017, no impairment analysis is performed on equity instruments measured at fair value through other comprehensive income. Bank of Spain Circular 4/2017 eliminates the need to estimate the impairment of this type of equity instruments and the reclassification to profit or loss of gains and losses on derecognition of these assets, which are recognised at fair value through equity. d) Other accumulated comprehensive income - Items that may be reclassified to profit or loss - Hedging derivatives – Cash flow hedges (Effective portion) ‘Other comprehensive income – Items that may be reclassified to profit or loss - Cash flow hedges’ includes the gains or losses attributable to hedging instruments that qualify as effective hedges. These amounts will remain under this heading until they are recognized in the income statement in the periods in which the hedged items affect it (see note 11). 124 e) Other accumulated comprehensive income - Items that may be reclassified to profit or loss – Changes in the fair value of debt instruments measured at fair value with changes in other comprehensive income Includes the net amount of unrealized changes in the fair value of assets classified as items than can be reclassified in results ‘Changes in the fair value of debt instruments measured at fair value with changes in other comprehensive income‘ (see note 7). Below is a breakdown of the balance composition as of December 31, 2025 and 2024 of ‘Other accumulated global income - Items that can be reclassified in results - Changes in the fair value of the instruments of debt valued at fair value with changes in other comprehensive income’ depending on the type of instrument: | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | EUR million | | | | | | | | | | | 2025 | | | | 2024 | | | | | | Revaluation gains | Revaluation losses | Net revaluation gains/ (losses) | Fair value | Revaluation gains | Revaluation losses | Net revaluation gains/ (losses) | Fair value | | Debt instruments | 57 | (62) | (5) | 5,349 | 52 | (42) | 10 | 8,873 | As of December 31, 2025 and 2024, the handicaps recorded in the ‘Other cumulative comprehensive income - Elements that can be reclassified into profit or loss - Changes in the fair value of debt instruments measured at fair value through other comprehensive income’ are not significant. 26. Shareholders’ equity The changes in ‘Shareholders' equity’ are presented in the statement of changes in total equity. Significant information on certain items of ‘Shareholders' equity’ and the changes therein in 2025 are set forth below. 27. Issued capital #### a) Changes At 31 December 2022, Banco Santander's share capital consisted of EUR 8,397 million, represented by 16,794,401,584 shares of EUR 0.50 of nominal value each and all of them of a unique class and series. On 21 March 2023, there was a capital reduction amounting EUR 170,203,286 through the redemption of 340,406,572 shares, corresponding to the share buyback programme carried out in 2022 and ended in January 2023. Likewise, on 30 June 2023, there was a capital reduction of EUR 134,924,476.50 through the redemption of 269,848,953 shares, corresponding to the share buyback programme during the first half of 2023. Therefore, Banco Santander's share capital at 31 December 2023 consisted of EUR 8,092 million, represented by 16,184,146,059 shares of EUR 0.50 of nominal value each and all of them of a unique class and series; including 286,842,316 shares corresponding to the first buyback programme of 2023 (see note 1.g.). On 5 February 2024, a capital reduction of EUR 179,283,743.50 took place through the redemption of 358,567,487 shares, corresponding to the share buyback programme carried out in 2023 and ended in January 2024. On 1 July 2024, a capital reduction of EUR 165,652,500 took place through the redemption of 331,305,000 shares, corresponding to he share buyback programme carried out between February and June 2024. On 20 December 2024, a capital reduction of EUR 170,890,625   took place through the redemption of 341,781,250 shares, corresponding to he share buyback programme carried out during the second semester of 2024. Therefore, Banco Santander's share capital at 31 December 2024 consisted of EUR 7,576 million, represented by 15,152,492,322 shares of EUR 0.50 of nominal value each and all of them of a unique class and series. On 3 June 2025, there was a capital reduction amounting to EUR 133,583,475 through the redemption of 267,166,950 shares, corresponding to the share buyback programme carried out between February and June 2025. 125 On 23 December 2025, a capital reduction of EUR 98,002,935 took place through the redemption of 196,005,870 shares, corresponding to the share buyback programme carried out during the second semester of 2025. Aforementioned operations have not entailed the return of contributions to the shareholders as Banco Santander was the owner of the redeemed shares. Therefore, Banco Santander's share capital at 31 December 2025 consisted of EUR 7,345 million, represented by 14,689,319,502 shares of EUR 0.50 of nominal value each and all of them of a unique class and series. Banco Santander’s shares are listed on the Spanish Stock Market Interconnection System and on the New York, London, Mexico and Warsaw Stock Exchanges, and all of them have the same features and rights. Santander shares are listed on the London Stock Exchange under Crest Depository Interest (CDI), each CDI representing one Bank’s share. They are also listed on the New York Stock Exchange under American Depositary Shares (ADS), each ADS representing one share. Additionally, Banco Santander's shares were listed on the traditional listing of the Mexican Stock Exchange (BMV) and since 29 December 2023, they were listed only in the International Quotation System of said stock exchange. As of 31 December 2025, no Banco Santander shareholder individually held more than 3% of its total share capital (which is the threshold generally provided for in Spanish regulations for mandatory notification of a significant participation in a listed company). Even though at 31 December 2025, certain custodians appeared in our shareholder registry as holding more than 3% of our share capital, we understand that those shares were held in custody on behalf of other investors, none of whom exceeded that threshold individually. These custodians were State Street Bank 13.90%), Chase Nominees Limited7.50%), The Bank of New York Mellon Corporation (7.18%),Citibank (6.40%), BNP Paribas 3.74%), Caceis Bank 3.57%) y The Northern Trust (3.06%). At 31 December 2025, neither Banco Santander's shareholder registry nor the CNMV's registry showed any shareholder residing in a non-cooperative jurisdiction with a shareholding equal to, or greater than, 1% of our share capital (which is the other threshold applicable under Spanish regulations). #### b) Other considerations Under Spanish law, only shareholders at the general meeting have the authority to increase share capital. However, they may delegate the authority to approve or execute capital increases to the board of directors. Banco Santander´s Bylaws are fully aligned with Spanish law and do not establish any different conditions for share capital increases. At 31 December 2025 the shares of the following companies were listed on official stock mark ets: Banco Santander - Chile; Banco Santander (Brasil) S.A. and Santander Bank Polska S.A. At 31 Decemb er 2025 the number of Banco Santander shares owned by third parties and managed by Group management companies (mainly portfolio, collective investment undertaking and pension fund managers) or jointly managed was 33 million shares, which represented 0.22% of Banco Santander’s share capital ( 40 million shares, representing 0.26% of the share capital in 2024).In addition, the number of Banco Santander shares owned by third parties and received as security was 28 million shares (equal to 0.19% of the Bank’s share capital). 28. Share premium Share premium includes the amount paid up by the Bank’s shareholders in capital issues in excess of the par value. The Corporate Enterprises Act expressly permits the use of the share premium account balance to increase capital at the entities at which it is recognised and does not establish any specific restrictions as to its use. The change in the balance of share premium corresponds to the capital reductions detailed in (note 27.a). The decrease produced in 2024 by an amount of EUR 3,778 million was the consequence of the difference between the purchase value of the redeemed shares (EUR 4,294 million ) and the par value of said shares (EUR 516 million) (see note 4.a and statements of changes in total equity) as a consequence of the capital decreases described in note 27.a. The decrease produced in 2025 by an amount of EUR 3,055 million has been the consequence of the difference between the purchase value of the redeemed shares (EUR 3,287 million) and the par value of said shares (EUR 231 million ) (see note 4.a and consolidated statements of changes in total equity) as a consequence of the capital decreases described in note 27.a. Likewise, in accordance with the applicable legislation, a reserve has been provided in 2024 for amortized capital charged to the issue premium for an amount equal to the nominal value of said amortized shares ascending to EUR 231 million (EUR 516 million   euros in 2024). 126 29. Accumulated retained #### earnings #### a) Definitions The balance of 'Equity - Accumulated gains and Other reserves' includes the net amount of the accumulated results (profits or losses) recognised in previous years through the income statement which in the profit distribution were allocated in equity, the expenses of own equity instrument issues, the differences between the amount for which the treasury shares are sold and their acquisition price, as well as the net amount of the results accumulated in previous years, generated by the result of non-current assets held for sale, recognised through the income statement. #### b) Breakdown The detail of ‘Shareholders' equity - reserves’ at 31 December 2025 and 2024 is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Restricted reserves | 3,328 | 3,084 | | Legal reserve A | 1,469 | 1,515 | | Own shares | 480 | 421 | | Revaluation reserve Royal Decree-Law 7/1996 | 43 | 43 | | Reserve for retired capital | 1,336 | 1,105 | | Unrestricted reserves | 26,357 | 20,362 | | Voluntary reserves | 26,357 | 20,362 | | Total | 29,685 | 23,446 | A. The board of directors has proposed to the general shareholders' meeting the reclassification of the excess that the amount of the balance of the legal reserve account shows over the figure that is equivalent to 20% of the resulting share capital after the executed capital reductions, to be included in the voluntary reserves account. i. Legal reserve Under the Consolidated Spanish Corporate Enterprises Act, 10% of net profit for each year must be transferred to the legal reserve. These transfers must be made until the balance of this reserve reaches 20% of the share capital. The legal reserve can be used to increase capital provided that the remaining reserve balance does not fall below 10% of the increased share capital amount. During 2024, Banco Santander reduced the legal reserve by EUR 103 million. During 2025, the legal reserve has been reduced by EUR 46 million to adjust that the amount of the legal reserve is equivalent to 20% of the share capital, after the executions of the capital reductions made in the year. This amount has been incorporated into the voluntary reserves account. The amount of the legal reserve amounted to 20% of the share capital figure on December 31, 2025. ii. Reserve for equity shares According to the Corporate Enterprises Act, an unavailable reserve equivalent to the amount for which Banco Santander's shares owned by subsidiaries are recorded. This reservation shall be freely available when the circumstances which have obliged its constitution disappear. In addition, this reserve covers the outstanding balance of loans granted by the Group with Banco Santander's share guarantee and the amount equivalent to the credits granted by the Group companies to third parties for the acquisition of own shares. iii. Revaluation reserve Royal Decree Law 7/1996, of 7 June The balance of Revaluation reserve Royal Decree-Law 7/1996 can be used, free of tax, to increase share capital. From 1 January 2007, the balance of this account can be taken to unrestricted reserves, provided that the monetary surplus has been realised. The surplus will be deemed to have been realised in respect of the portion on which depreciation has been taken for accounting purposes or when the revalued assets have been transferred or derecognised. If the balance of this reserve were used in a manner other than that provided for in Royal Decree law 7/1996, of 7 June, it would be subject to taxation. iv. Voluntary Reserve During the financial year 2025 there was an increase in voluntary reserves of EUR 5,995 million, which is explained by the application of the result of the financial year 2024, amounting to EUR 6,927 million; an increase of EUR 46 million due to the reclassification of the excess legal reserve; a decrease of EUR 622 million for the interest of the PPCCs; an increase of EUR 196 million for the merger reserve with URO Prperty Holdings, S.A., Blecno Investments, S.L.U., Emisora Santander España, S.A.U. y Elevate Tech Platforms, S.L.U.; an decrease of EUR 3 million in lost on sale of equity instruments measured at fair value from other cumulative comprehensive income and a decrease of EUR 549 million in transfers between equity items and other items. 127 30. Other equity instruments #### and own shares #### a) Equity instruments issued not capital and other #### equity instruments Other equity instruments includes the equity component of compound financial instruments, the increase in equity due to personnel remuneration, and other items not recognised in other 'Shareholders’ equity' items. On 8 September 2017, Banco Santander, S.A. issued contingent redeemable perpetual bonds (the fidelity bonds) amounting to EUR 981 milliom nominal value (EUR 686 million fair value). On 15 December 2024, Banco Santander, S.A., proceeded to redeem in advance voluntarily all of said bonds in circulation. Additionally, at 31 December 2025 the Bank had other equity instruments amounting to EUR 417 million. #### b) Own shares ‘Shareholders' equity - Own shares’ includes the amount of equity instruments held by Banco Santander. Transactions involving own equity instruments, including their issuance and cancellation, are recognised directly in equity, and no profit or loss may be recognised on these transactions. The costs of any transaction involving own equity instruments are deducted directly from equity, net of any related tax effect. The Bank’s shares owned by the consolidated companies accounted for 0.07% of issued share capital at 31 December 2025 (December 31, 2024 0.10%). During financial year 2025, Banco Santander acquired 551,762,443 own shares at an average price of EUR 7.01 per share, of which 267,166,950 shares were acquired under the eighth share buy-back programme launched on 6 February 2025, and 196,005,870 shares under the ninth buy-back programme launched on 31 July 2025. In addition, 463,172,820 shares were cancelled and 88,589,623 shares were sold at an average price of EUR 6.53 per share. 31. Memorandum items Memorandum items relate to balances representing rights, obligations and other legal situations that in the future may have an impact on net assets, as well as any other balances needed to reflect all transactions even though they may not impinge on its net assets. #### a) Guarantees and contingent commitments #### granted Guarantees include transactions for which an entity secures obligations of a third party arising from financial guarantees granted by the entity or other types of contracts. ‘Contingent liabilities’ include all transactions under which an entity guarantees the obligations of a third party and which result from financial guarantees granted by the entity or from other types of contract. The detail is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Loans commitment granted | 149,881 | 141,976 | | Available in lines of credit | 149,881 | 141,976 | | Deposits in the future | — | — | | Financial guarantees granted | 22,138 | 18,888 | | Financial guarantees | 74 | 82 | | Credit derivatives sold | 22,064 | 18,806 | | Other commitments granted | 121,415 | 108,829 | | Irrevocable documentary credits | 5,826 | 4,320 | | Other guarantees and guarantees granted | 47,496 | 47,211 | | Other | 68,093 | 57,298 | | Of which: | | | | Subscribed securities pending disbursement | 1 | 1 | | Conventional asset acquisition contracts | 39,551 | 35,617 | | Other contingent commitments | 28,541 | 21,680 | | Total Other guarantees and commitments | 293,434 | 269,693 | The breakdown at December 31, 2025 of off-balance sheet exposures and allowance fund (see note 23) by impairment phase under Bank of Spain Circular 4/2017 are EUR 284,838 million and EUR 78 million in Stage 1, EUR 7,983 million and EUR 53 million in Stage 2 and EUR 613 million and EUR 48 million in Stage 3, respectively. In addition, the breakdown at December 31, 2024 of exposures and the allowance fund were EUR 261,861 million and EUR 61 million in Stage 1, EUR 7,232 million and EUR 44 million in Stage 2 and EUR 600 million and EUR 70 million in Stage 3, respectively. 128 A significant part of these amounts will mature without any payment obligation material for the Bank; therefore, the aggregate balance of these commitments cannot be considered as a real future need for financing or liquidity to be granted to third parties by Banco Santander. Income from guarantee instruments is recognized under ‘Fee and commission income’ in the income statements and is calculated by applying the rate established in the related contract to the nominal amount of the guarantee. i. Loan commitments granted Firm commitments to provide credit under pre- established conditions and terms, except for those that meet the definition of derivatives because they may be settled in cash or through the delivery or issuance of another financial instrument. They include those available in lines of credit and forward deposits. ii. Financial guarantees granted Include financial guarantee contracts such as financial guarantees, credit derivatives sold, derivative risks contracted on behalf of third parties and others. iii. Other commitments granted Other contingent liabilities include all commitments that could give rise to the recognition of financial assets not included in the above items, such as technical guarantees and guarantees for the import and export of goods and services. b) Other information i. Assets advanced as collateral In addition to collateral assets, there are assets owned by Banco Santander which guarantee both transactions carried out by the Bank or by third parties and various contingent liabilities and liabilities over which the assignee has the right, by contract or custom, to re- transfer and pledge them. The carrying value of Banco Santander's financial assets delivered as collateral for such contingent and assimilated liabilities or liabilities is the following: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Financial assets held for trading | 55,600 | 27,581 | | Of which | | | | Public debt Public Sector Agencies | 7,215 | 4,236 | | Fix rent instruments | 41,580 | 19,970 | | Equity instruments | 6,805 | 3,375 | | Non-trading financial assets mandatorily at fair value through profit or loss | — | 30 | | Financial assets at fair value through other comprehensive income | 2,154 | 2,148 | | Financial assets at amortized cost | 30,025 | 15,277 | | Total | 87,779 | 45,036 | 32. Hedging derivatives Banco Santander, within its financial risk management strategy, and in order to reduce asymmetries in the accounting treatment of its operations, enters into hedging derivatives on interest, exchange rate, credit risk or variation of stock prices, depending on the nature of the risk covered. Based on its objective, Banco Santander classifies its hedges in the following categories: • Cash flow hedges: cover the exposure to the variation of the cash flows associated with an asset, liability or a highly probable forecast transaction. This cover the variable-rate issues in foreign currencies, fixed-rate issues in non-local currency, variable-rate interbank financing and variable-rate assets (bonds, commercial loans, mortgages, etc.). • Fair value hedges: cover the exposure to the variation in the fair value of assets or liabilities, attributable to an identified and hedged risk. This covers the interest risk of assets or liabilities (bonds, loans, bills, issues, deposits, etc.) with coupons or fixed interest rates, interests in entities, issues in foreign currencies and deposits or other fixed rate liabilities. • Hedging of net investments abroad: cover the exchange rate risk of the investments in subsidiaries domiciled in a country with a different currency from the functional one of the Bank. The details of the coverage derivatives of Banco Santander, S.A. according to the type of coverage, the risk they cover and the product, can be found in the following table: 129 | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | EUR million | | | | | | | | 31 December 2025 | | | | | | | Notional Value | Carrying amount | | Changes in fair value used for calculating hedge ineffectiveness | Balance sheet items | | | Assets | Liabilities | | Fair Value Hedges | 69,954 | 1,176 | (1,739) | 335 | | | Interest rate risk | 60,867 | 801 | (1,166) | 362 | Hedging derivatives | | Of which: | | | | | | | Interest Rate Swap | 50,721 | 711 | (1,111) | 455 | | | Forward | 10,146 | 90 | (55) | (94) | | | Cap&Floor | — | — | — | 1 | | | Exchange rate risk | 1,277 | 2 | (15) | — | Hedging derivatives | | Of which: | | | | | | | Fx forward | 1,277 | 2 | (15) | — | | | Interest rate and exchange risk | 7,310 | 373 | (557) | (27) | Hedging derivatives | | Of which: | | | | | | | Interest Rate Swap | 851 | 5 | (55) | (1) | | | Currency Swap | 6,459 | 368 | (501) | (26) | | | Credit Risk | — | — | — | — | Hedging derivatives | | Of which: | | | | | | | CDS | — | — | — | — | | | Base risk | 500 | — | (1) | — | Hedging derivatives | | Of which: | | | | | | | Interest Rate Swap | 500 | — | (1) | — | | | Cash flow Hedges | 12,465 | 108 | (83) | (100) | | | Interest rate risk | 11,336 | 80 | (7) | (94) | Hedging derivatives | | Of which: | | | | | | | Interest Rate Swap | 9,851 | 58 | — | (11) | | | Forward | 1,485 | 22 | (7) | (83) | | | Exchange rate risk | 18 | — | — | 1 | Hedging derivatives | | Of which: | | | | | | | FX swap | 18 | — | — | — | | | Interest rate and exchange risk | 1,111 | 28 | (76) | (7) | Hedging derivatives | | Of which: | | | | | | | Interest Rate Swap | 295 | — | (10) | 4 | | | Currency Swap | 817 | 28 | (66) | (11) | | | Inflation rate risk | — | — | — | — | Hedging derivatives | | Of which | — | — | — | — | | | Interest Rate Swap | — | — | — | — | | | Floor | — | — | — | — | | | Net Investments hedges abroad | 17,177 | 75 | (462) | 283 | | | Exchange rate risk | 17,177 | 75 | (462) | 283 | Hedging derivatives | | Of which: | | | | | | | Fx forward | 17,177 | 75 | (462) | 283 | | | Total | 99,596 | 1,359 | (2,284) | 518 | | 130 | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | EUR million | | | | | | | | 31 December 2024 | | | | | | | Notional Value | Carrying amount | | Changes in fair value used for calculating hedge ineffectiveness | Balance sheet line items | | | Assets | Liabilities | | Fair Value Hedges | 71,778 | 1,140 | (2,169) | 267 | | | Interest rate risk | 62,071 | 736 | (1,629) | 202 | Hedging derivatives | | Of which: | | | | | | | Interest Rate Swap | 59,187 | 688 | (1,626) | 162 | | | Forward | 2,500 | 43 | — | 43 | | | Exchange rate risk | 1,165 | 4 | (24) | 1 | Hedging derivatives | | Of which: | | | | | | | Fx forward | 1,165 | 4 | (24) | 1 | | | Interest rate and exchange risk | 8,042 | 400 | (516) | 64 | Hedging derivatives | | Of which: | | | | | | | Interest Rate Swap | 882 | 5 | (65) | 17 | | | Currency Swap | 7,160 | 394 | (451) | 48 | | | Credit Risk | — | — | — | — | Hedging derivatives | | Of which: | | | | | | | CDS | — | — | — | — | | | Base risk | 500 | — | — | — | Hedging derivatives | | Of which: | | | | | | | Interest Rate Swap | 500 | — | — | — | | | Cash flow Hedges | 13,381 | 121 | (120) | 405 | | | Interest rate risk | 12,020 | 72 | (57) | 410 | Hedging derivatives | | Of which: | | | | | | | Interest Rate Swap | 5,820 | 66 | (4) | 328 | | | Fx forward | 6,200 | 6 | (53) | 82 | | | Exchange rate risk | 223 | 2 | — | — | Hedging derivatives | | Of which: | | | | | | | Fx forward | 223 | 2 | — | — | | | Interest rate and exchange risk | 1,138 | 47 | (63) | (5) | Hedging derivatives | | Of which: | | | | | | | Interest Rate Swap | 297 | — | (13) | (8) | | | Currency exchange | 841 | 47 | (50) | 3 | | | Inflation rate risk | — | — | — | — | Hedging derivatives | | Of which | | | | | | | Interest Rate Swap | — | — | — | — | | | Floor | — | — | — | — | | | Net Investments hedges abroad | 21,131 | 656 | (227) | 453 | | | Exchange rate risk | 21,131 | 656 | (227) | 453 | Hedging derivatives | | Of which: | | | | | | | Fx forward | 21,131 | 656 | (227) | 453 | | | Total | 106,290 | 1,917 | (2,516) | 1,125 | | 131 Banco Santander covers the risks of its balance sheet in a variety of ways. On the one hand, documented as fair value hedges, it covers the interest rate and foreign exchange risk of fixed-income portfolios at a fixed rate (REPOs are included in this category). Resulting, in an exposure to changes in their fair value due to variations in market conditions based on the various risks hedged, which has an impact on Banco Santander's income statement. To mitigate these risks, Banco Santander contracts derivatives, mainly Interest Rate Swaps, Cross Currency Swaps, Cap&floors and Forex Forward. On the other hand, the interest and exchange rate risk of loans granted to corporate clients at a fixed rate or variable rate is covered. These hedges, are carried out through interest rate swaps, cross currency swaps and exchange rate derivatives (forex swaps and forex forward). In addition, Banco Santander, S.A. manages the interest and exchange risk of debt issues in its various categories (issuing covered bonds, perpetual, subordinated and senior bond) and in different currencies, denominated at fixed rates, and therefore subject to changes in their fair value. These issues are covered through interest rate swaps and cross currency swaps. The methodology used by Banco Santander to measure the effectiveness of fair value hedges is based on comparing the market values of the hedged items (based on the objective risk of the hedge) and of the hedging instruments in order to analyse whether the changes in the market value of the hedged items are offset by the market value of the hedging instruments, thereby mitigating the hedged risk and minimizing volatility in the income statement. Prospectively, the same analysis is performed, measuring the theoretical market values in the event of parallel variations in the market curves of a positive basis point. There is a macro hedge of structured loans in which the interest rate risk of fixed-rate loans (mortgage, personal or with other guarantees) granted to legal entities in commercial or corporate banking and wealth clients in the medium-long term is hedged. This hedge is instrumented as a macro hedge of fair value, the main hedging instruments being Interest Rate Swap and Cap&floors. In case of total or partial cancellation or early repayment, the customer is obliged to pay/receive the cost/income of the cancellation of the interest rate risk hedge managed by the Bank. Regarding cash flow hedges, the objective is to hedge the cash flow exposure to changes in interest rates and exchange rates. For retrospective purposes, the hypothetical derivative methodology is used to measure effectiveness. By means of this methodology, the hedged risk is modelled as a derivative instrument -not real-, created exclusively for the purpose of measuring the effectiveness of the hedge, and which must comply with the fact that its main characteristics coincide with the critical terms of the hedged item throughout the period for which the hedging relationship is designated. This hypothetical derivative does not incorporate characteristics that are exclusive to the hedging instrument. Additionally, it is worth mentioning that any risk component not associated with the hedged objective risk and effectively documented at the beginning of the hedge is excluded for the purpose of calculating the effectiveness. The market value of the hypothetical derivative that replicates the hedged item is compared with the market value of the hedging instrument, verifying that the hedged risk is effectively mitigated and that the impact on the income statement due to potential ineffectiveness is residual. Prospectively, the variations in the market values of the hedging instrument and the hedged item (represented by the hypothetical derivative) are measured in the event of parallel shifts of a positive basis point in the affected market curves. There is another macro-hedge, this time of cash flows, the purpose of which is to actively manage the risk-free interest rate risk (excluding credit risk) of a portion of the floating rate assets of Banco Santander, S.A., through the arrangement of interest rate derivatives whereby the bank exchanges floating rate interest flows for others at a fixed rate agreed at the time the transactions are arranged. The items affected by the Macro-hedging have been designated as those in which their cash flows are exposed to interest rate risk, specifically the floating rate mortgages of the Banco Santander, S.A. network referenced to Euribor 12 Months or Euribor Mortgage, with annual renewal of rates, classified as sound risk and which do not have a contractual floor (or, if not, this floor is not activated). The hedged position affecting the Macro Cash Flow Hedge at the present time is near to EUR 5,000 million . 132 Regarding net foreign investments hedges, basically, they are allocated in Banco Santander, S.A. Grupo Santander assumes as a priority risk management objective to minimize -to the limit determined by the Group's Financial Management- the impact on the calculation of the capital ratio of its permanent investments included within the Group's consolidation perimeter, and whose shares or equity interests are legally denominated in a currency other than that of the Group's parent company.  For this purpose, financial instruments (generally derivatives) are contracted to hedge the impact on the capital ratio of changes in forward exchange rates.  Grupo Santander mainly hedges the risk for the following currencies: BRL, CLP, MXN, CAD, COP, CNY, GBP, CHF, NOK, USD, PLN, UYU and PEN. The instruments used to hedge the risk of these investments are forex swaps, forex forward and spot currency purchases/sales. For this type of hedges, ineffectiveness scenarios are considered to be of low probability, given that the hedging instrument is designated considering the position determined and the spot rate at which the position is located. Additionally, the profile information of maturities and the price/average rate for Banco Santander is shown: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | | | | | | | 31 December 2025 | | | | | | | | Up to one month | One to three months | Three months to one year | One year to five years | More than five years | Total | | Fair value hedges | 1,121 | 3,139 | 8,502 | 38,581 | 18,611 | 69,954 | | Interest rate risk | | | | | | | | Interest rate instruments | | | | | | | | Nominal | 746 | 2,790 | 6,849 | 34,331 | 17,003 | 61,719 | | Average fixed interest rate (%) GBP | — | 2.155 | 1.500 | 5.725 | 5.371 | | | Average fixed interest rate (%) EUR | 3.303 | 2.809 | 2.101 | 3.139 | 3.303 | | | Avarage  fixed interest rate (%)  CZK | — | 1.650 | 2.350 | — | — | | | Avarage  fixed interest rate (%) NOK | — | — | — | — | 2.403 | | | Avarage  fixed interest rate (%) AUD | — | — | — | — | 3.824 | | | Average fixed interest rate (%) CHF | — | — | — | 0.403 | — | | | Average fixed interest rate (%) RON | — | — | 4.880 | 3.200 | — | | | Average fixed interest rate (%) USD | 5.075 | 4.422 | 1.983 | 3.653 | 4.991 | | | Average fixed interest rate (%) HKD | — | — | — | 1.960 | — | | | Average fixed interest rate (%) NZD | — | — | — | — | 3.252 | | | Exchange rate risk | | | | | | | | Exchange rate instruments | | | | | | | | Nominal | 329 | 250 | 697 | | | 1,276 | | CNY/EUR average exchange rate | – | 8.2728 | 8.2837 | – | – | | | MXN/EUR average exchange rate | 21.7269 | – | – | – | – | | | Interest rate and exchange risk | | | | | | | | Instruments of exchange rate and interest | | | | | | | | Nominal | 46 | 99 | 956 | 3,750 | 1,608 | 6,459 | | Average fixed interest rate (%) AUD/EUR | — | — | — | 5.710 | 6.101 | | | Average fixed interest rate (%) CZK/EUR | — | — | — | 4.264 | — | | | Average fixed interest rate (%) RON/EUR | — | — | — | — | 6.970 | | | Average fixed interest rate (%) HKD/EUR | — | — | — | 4.618 | — | | | Average fixed interest rate (%) JPY/EUR | — | — | — | 0.975 | 1.407 | | | Average fixed interest rate (%) NOK/EUR | — | — | — | 3.441 | 4.155 | | | Average  fixed interest rate (%) CHF/EUR | — | — | — | 2.021 | 1.919 | | | Average fixed interest rate (%) USD/COP | 11.669 | 11.703 | 9.869 | 9.356 | — | | | Average  fixed interest rate (%) USD/MXN | — | — | 8.800 | — | — | | 133 | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | | | | | | | 31 December 2025 | | | | | | | | Up to one month | One to three months | Three months to one year | One year to five years | More than five years | Total | | AUD/EUR average exchange rate | — | — | — | 1.6174 | 1.5837 | | | COP/USD average exchange rate | — | — | — | — | 1.6660 | | | CZK/EUR average exchange rate | — | 26.1310 | 25.3650 | 24.8324 | — | | | EUR/COP average exchange rate | — | — | 0.0002 | — | — | | | EUR/USD average exchange rate | — | — | 0.9404 | 0.9475 | — | | | HKD/EUR average exchange rate | — | — | — | 8.4879 | — | | | JPY/EUR average exchange rate | — | — | — | 137.8023 | 129.2289 | | | MXN/EUR average exchange rate | — | — | — | 19.0828 | — | | | NOK/EUR average exchange rate | — | — | — | 9.5190 | 10.6512 | | | RON/EUR average exchange rate | — | — | 4.9485 | 4.9270 | 4.9800 | | | CHF/EUR average exchange rate | — | — | — | 1.0194 | 0.9347 | | | USD/COP average exchange rate | 0.0003 | 0.0002 | 0.0003 | 0.0003 | 0.0003 | | | USD/MXN average exchange rate | — | — | 0.0545 | — | — | | | Basis Risk | | | | | | | | Basis risk instruments | | | | | | | | Nominal | — | — | — | 500 | — | 500 | | Others riks | | | | | | | | Exchange instruments | | | | | | | | Nominal | — | — | — | — | — | — | | Cash flow hedges | 245 | — | 2,417 | 9,216 | 587 | 12,465 | | Interest rate and exchange rate risk | | | | | | | | Interest rate and exchange instruments | | | | | | | | Nominal | 236 | — | 288 | 213 | 80 | 817 | | Average fixed interest rate (%) AUD/EUR | — | — | — | 5.678 | — | | | Average fixed interest rate (%) CHF/EUR | 2.258 | — | — | — | — | | | AUD / EUR average exchange rate | — | — | 1.590 | 1.577 | 1.562 | | | RON / EUR average exchange rate | — | — | 4.940 | — | — | | | CHF / EUR average exchange rate | 1.002 | — | — | — | — | | | Interest rate risk | | | | | | | | Interest Rate Swaps | | | | | | | | Nominal | — | — | 2,120 | 9,003 | 507 | 11,630 | | Average fixed interest rate (%) EUR | — | — | 2.964 | 2.695 | 3.016 | | | Average fixed interest rate (%) AUD | — | — | 1.65 | — | — | | | Exchange rate risk | | | | | | | | FX Swap | | | | | | | | Nominal | 9 | — | 9 | — | — | 18 | | GBP/EUR average exchange rate | 1.129 | — | 1.119 | — | — | | | Others risks | | | | | | | | Exchange instruments | | | | | | | | Nominal | — | — | — | — | — | — | | Net investment hedges abroad | 2,574 | 4,530 | 9,866 | 207.00 | — | 17,177 | | Exchange rate risk | | | | | | | | Exchange rate instruments | | | | | | | | Nominal | 2,574 | 4,530 | 9,866 | 207.00 | — | 17,177 | | BRL / EUR average exchange rate | 6.892 | 6.979 | 6.652 | — | — | | | CLP / EUR average exchange rate | 1,054.241 | 1,018.994 | 1,108.027 | 1,099.571 | — | | | COP / EUR average exchange rate | — | 4,565.931 | — | — | — | | 134 | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | | | | | | | 31 December 2025 | | | | | | | | Up to one month | One to three months | Three months to one year | One year to five years | More than five years | Total | | GBP / EUR average exchange rate | 0.860 | 0.867 | 0.884 | — | — | | | MXN / EUR average exchange rate | 22.187 | 23.465 | 22.823 | — | — | | | USD / EUR average exchange rate | — | 1.078 | 1.175 | — | — | | | PLN / EUR average exchange rate | 4.321 | 4.307 | 4.309 | — | — | | | CAD / EUR average exchange rate | 1.611 | — | — | — | — | | | UYU / EUR average exchange rate | 48.093 | 48.729 | 49.916 | 53.350 | — | | | Total | 3,940 | 7,669 | 20,785 | 48,004 | 19,198 | 99,596 | 135 | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | | | | | | | 31 December 2024 | | | | | | | | Up to one month | One to three months | Three months to one year | One year to five years | More than five years | Total | | Fair value hedges | 1,916 | 4,999 | 8,520 | 38,683 | 17,660 | 71,778 | | Interest rate risk | | | | | | | | Interest rate instruments | | | | | | | | Nominal | 1,431 | 4,446 | 6,878 | 33,324 | 15,991 | 62,070 | | Average fixed interest rate (%) GBP | — | 0.020 | 3.120 | 2.640 | 5.370 | | | Average fixed interest rate (%) EUR | 1.340 | 0.010 | 2.000 | 3.460 | 3.170 | | | Avarage  fixed interest rate (%)  CZK | — | — | — | 2.000 | — | | | Avarage  fixed interest rate (%) NOK | — | — | — | — | 2.400 | | | Avarage  fixed interest rate (%) AUD | — | — | — | — | 3.820 | | | Average fixed interest rate (%) RON | — | 3.610 | — | 4.200 | — | | | Average fixed interest rate (%) USD | 0.010 | 3.500 | 2.740 | 4.460 | 4.720 | | | Average fixed interest rate (%) HKD | — | — | — | 1.960 | — | | | Average fixed interest rate (%) NZD | — | — | — | — | 3.250 | | | Exchange rate risk | | | | | | | | Exchange rate instruments | | | | | | | | Nominal | 473 | 405 | 287 | — | — | 1,165 | | CNY/EUR average exchange rate | 7.7100 | 7.7100 | 7.7100 | — | — | | | MXN/EUR average exchange rate | 21.7800 | — | — | — | — | | | Interest rate and exchange risk | | | | | | | | Instruments of exchange rate and interest | | | | | | | | Nominal | 12 | 148 | 1,355 | 4,859 | 1,669 | 8,043 | | Average fixed interest rate (%) AUD/EUR | | | | 5.690 | 6.100 | | | Average fixed interest rate (%) CZK/EUR | — | — | — | 4.190 | — | | | Average fixed interest rate (%) RON/EUR | — | — | — | — | 6.970 | | | Average fixed interest rate (%) HKD/EUR | — | — | — | 4.620 | — | | | Average fixed interest rate (%) JPY/EUR | — | — | — | 1.300 | 1.410 | | | Average fixed interest rate (%) NOK/EUR | — | — | — | 3.440 | 4.500 | | | Average  fixed interest rate (%) CHF/EUR | — | — | — | 2.030 | 2.250 | | | Average fixed interest rate (%) USD/COP | — | 12.750 | 10.580 | 10.540 | 7.760 | | | Average  fixed interest rate (%) EUR/GBP | 6.690 | — | — | — | — | | | Average  fixed interest rate (%) USD/MXN | — | — | 11.300 | — | — | | | AUD/EUR average exchange rate | — | — | — | 1.5992 | 1.5837 | | | NZD/EUR average exchange rate | — | — | — | — | 1.6660 | | | CZK/EUR average exchange rate | — | — | 26.0300 | 25.6338 | — | | | EUR/GBP average exchange rate | 1.1885 | — | — | — | — | | | EUR/USD average exchange rate | — | — | 0.9818 | 0.9433 | — | | | HKD/EUR average exchange rate | — | — | — | 8.4879 | — | | | JPY/EUR average exchange rate | — | — | — | 134.1510 | 129.2289 | | | MXN/EUR average exchange rate | — | — | — | 19.0828 | — | | | NOK/EUR average exchange rate | — | — | — | 9.5190 | 10.4288 | | | RON/EUR average exchange rate | — | 4.8100 | — | 4.9398 | 4.9800 | | | CHF/EUR average exchange rate | — | — | — | 1.0194 | 0.9315 | | | USD/COP average exchange rate | — | 0.0003 | 0.0002 | 0.0002 | 0.0003 | | | USD/MXN average exchange rate | — | — | 0.0517 | — | — | | | Basis Risk | | | | | | | | Basis risk instruments | | | | | | | | Nominal | — | — | — | 500 | — | 500 | 136 | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | | | | | | | 31 December 2024 | | | | | | | | Up to one month | One to three months | Three months to one year | One year to five years | More than five years | Total | | Others riks | | | | | | | | Exchange instruments | | | | | | | | Nominal | — | — | — | — | — | — | | Cash flow hedges: | 14 | 83 | 6,325 | 6,875 | 84 | 13,381 | | Interest rate and exchange rate risk | | | | | | | | Interest rate and exchange instruments | | | | | | | | Nominal | — | — | — | 1,055 | 84 | 1,139 | | Average fixed interest rate (%) AUD/EUR | — | — | — | 3.520 | — | | | Average fixed interest rate (%) CHF/EUR | — | — | — | 3.110 | — | | | AUD / EUR average exchange rate | — | — | — | 1.5800 | 1.5600 | | | RON / EUR average exchange rate | — | — | — | 4.9400 | — | | | CHF / EUR average exchange rate | — | — | — | 1.0000 | — | | | Interest rate risk | | | | | | | | Interest Rate Swaps | | | | | | | | Nominal | — | — | 6,200 | 5,820 | — | 12,020 | | Average fixed interest rate (%) EUR | — | — | — | 2.910 | — | | | Exchange rate risk | | | | | | | | FX Swap | | | | | | | | Nominal | 14 | 83 | 125 | — | 0 | 222 | | GBP/EUR average exchange rate | 1.2000 | 1.1700 | 1.1900 | — | — | | | Others risks | | | | | | | | Exchange instruments | | | | | | | | Nominal | — | — | — | — | 0 | 0 | | Net investment hedges abroad | 3,240 | 5,070 | 12,821 | — | — | 21,131 | | Exchange rate risk | | | | | | | | Exchange rate instruments | | | | | | | | Nominal | 3,240 | 5,070 | 12,821 | 0 | 0 | 21,131 | | BRL / EUR average exchange rate | 5.9900 | 6.1200 | 6.2700 | — | — | | | CLP / EUR average exchange rate | 1,052.7800 | 1,066.5800 | 1,045.0900 | — | — | | | COP / EUR average exchange rate | — | 4,703.0000 | — | — | — | | | GBP / EUR average exchange rate | 0.8600 | 0.8500 | 0.8500 | — | — | | | MXN / EUR average exchange rate | 20.2800 | 19.8300 | 21.9700 | — | — | | | USD / EUR average exchange rate | 1.0900 | 1.0800 | 1.0900 | — | — | | | PLN / EUR average exchange rate | 4.3700 | 4.4100 | 4.4100 | — | — | | | CAD / EUR average exchange rate | — | 1.5000 | — | — | — | | | CHF / EUR average exchange rate | — | 0.9400 | — | — | — | | | UYU / EUR average exchange rate | 45.8200 | 45.1600 | 48.2900 | — | — | | | Total | 5,170 | 10,152 | 27,666 | 45,558 | 17,744 | 106,290 | 137 Regarding the hedged items, in the following table we have the detail of the type of coverage, the risk that is covered and what products are being covered as of December 31, 2025 and 2024, mainly they are loaned deposits, financial and corporate bonds and corporate repos: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | EUR million | | | | | | | | | | 31 December 2025 | | | | | | | | | Amount in books of the item covered | | Cumulative amount of fair value adjustments on the covered line | | Change in the fair value of the item covered for inefficiency assessment | Cash flow hedge reserve / foreign currency conversion | | | | Assets | Liabilities | Assets | Liabilities | Coverage continues | Discontinuous coverage | | Fair value hedges | 10,612 | 54,984 | (42) | 401 | (351) | — | — | | Interest rate risk | 8,039 | 48,839 | (23) | 337 | (363) | — | — | | Exchange rate risk | 1,278 | — | 1 | — | — | — | — | | Interest rate and exchange rate risk | 793 | 6,145 | (20) | 64 | 12 | — | — | | Credit risk | — | — | — | — | — | — | — | | Basis risk | 501 | — | — | — | — | — | — | | Other risks | — | — | — | — | — | — | — | | Cash flow hedges | — | — | — | — | 100 | 49 | — | | Interest rate risk | — | — | — | — | 94 | 47 | — | | Exchange rate risk | — | — | — | — | (1) | 1 | — | | Interest rate and exchange rate risk | — | — | — | — | 7 | 1 | — | | Inflation rate risk | — | — | — | — | — | — | — | | Other risks | — | — | — | — | — | — | — | | Net investment hedges abroad | 17,177 | — | (283) | — | (283) | — | — | | Exchange rate risk | 17,177 | — | (283) | — | (283) | — | — | | Total | 27,789 | 54,984 | (325) | 401 | (534) | 49 | — | 138 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | EUR million | | | | | | | | | | 31 December 2024 | | | | | | | | | Amount in books of the item covered | | Cumulative amount of fair value adjustments on the covered line | | Change in the fair value of the item covered for inefficiency assessment | Cash flow hedge reserve / foreign currency conversion | | | | Assets | Liabilities | Assets | Liabilities | Coverage continues | Discontinuou s coverage | | Fair value hedges | 9,218 | 49,919 | (134) | (872) | (249) | — | — | | Interest rate risk | 7,391 | 45,169 | (117) | (830) | (188) | — | — | | Exchange rate risk | 1,165 | — | — | — | — | — | — | | Interest rate and exchange rate risk | 662 | 4,750 | (17) | (42) | (61) | — | — | | Credit risk | — | — | — | — | — | — | — | | Basis risk | — | — | — | — | — | — | — | | Other risks | — | — | — | — | — | — | — | | Cash flow hedges | — | — | — | — | (409) | 26 | 122 | | Interest rate risk | — | — | — | — | (414) | 18 | 122 | | Exchange rate risk | — | — | — | — | — | — | — | | Interest rate and exchange rate risk | — | — | — | — | 5 | 8 | — | | Inflation rate risk | — | — | — | — | — | — | — | | Other risks | — | — | — | — | — | — | — | | Net investment hedges abroad | 21,132 | — | (453) | — | (453) | — | — | | Exchange rate risk | 21,132 | — | (453) | — | (453) | — | — | | Total | 30,350 | 49,919 | (587) | (872) | (1,111) | 26 | 122 | 139 The cumulative amount of adjustments of the fair value hedging instruments that remain in the balance for hedges items that are no longer adjusted by profit and loss of coverage as at 31 December 2025 is EUR 19 million (EUR 33  million in 2024). The following table contains information regarding the effectiveness of the hedging relationships designated by Banco Santander, as well as the impacts on profit or loss and other comprehensive income as of 31 December 2025 and 2024: | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | EUR million | | | | | | | | 31 December 2025 | | | | | | | Earnings / (losses) recognized in Other accumulated global income | Coverage inefficiency recognized in the income statement | Line of the income statement that includes ineffective coverage | Reclassified amount of reserves to the income statement due to: | | | | Covered transaction that affects the income statement | Line of the income statement that includes reclassified amounts | | Fair value hedges | — | (16) | Gain or losses of financial assets/ liabilities | | | | Interest rate risk | — | (1) | | | | | Exchange rate risk | — | — | | | | | Interest and Exchange rate risk | — | (15) | | | | | Credit risk | — | — | | | | | Other risks | — | — | | | | | Cash flow hedges | (100) | — | Gain or losses of financial assets/ liabilities | (21) | Net interest income/ Gains or losses of financial assets/ liabilities | | Interest rate risk | (94) | — | | (9) | | | Exchange rate risk | 1 | — | | — | | | Interest and Exchange rate risk | (7) | — | | (12) | | | Inflation rate risk | — | — | | — | | | Other risks | — | — | | — | | | Total | (100) | (16) | | (21) | | 140 | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | EUR million | | | | | | | | 31 December 2024 | | | | | | | Earnings / (losses) recognized in Other accumulated global income | Coverage inefficiency recognized in the income statement | Line of the income statement that includes ineffective coverage | Reclassified amount of reserves to the income statement due to: | | | | Covered transaction that affects the income statement | Line of the income statement that includes reclassified amounts | | Fair value hedges | — | (7) | Gain or losses of financial assets/ liabilities | | | | Interest rate risk | — | (11) | | | | | Exchange rate risk | — | 1 | | | | | Interest and Exchange rate risk | — | 4 | | | | | Credit risk | — | (1) | | | | | Other risks | — | — | | | | | Cash flow hedges | 409 | (3) | Gain or losses of financial assets/ liabilities | 269 | Net interest income/ Gains or losses of financial assets/ liabilities | | Interest rate risk | 414 | (3) | | 278 | | | Exchange rate risk | — | — | | — | | | Interest and Exchange rate risk | (5) | — | | (9) | | | Inflation rate risk | — | — | | — | | | Other risks | — | — | | — | | | Total | 409 | (10) | | 269 | | | | | | | | | The following table shows a reconciliation of each component of equity and an analysis of other comprehensive income in relation to hedge accounting at 31 December 2025 and 2024: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Balance at the end of the previous year | 104 | (182) | | Amount recognized in Other accumulated global income | | | | Cash flow hedges | (100) | 409 | | Interest rate risk and interest rate and exchange rate risk | (101) | 409 | | Changes in equity by discharge at P&L | (21) | 269 | | Remains of equity movements | (80) | 140 | | Other risks | 1 | — | | Changes in equity by discharge at P&L | — | — | | Remains of equity movements | 1 | — | | Taxes | 31 | (123) | | Balance at year end | 35 | 104 | 33. Off-balance-sheet funds #### under management As of 31 December 2025, Banco Santander held off- balance-sheet funds under management, namely investment funds and assets under management, amounting to EUR 121,071 million (31 December 2024, EUR 108,663 million). Marketed but not held under management amounted to EUR 38,185 million (31 December 2024, EUR 28,971 million). 141 34. Interest income Interest and similar income in the accompanying income statements comprises the interest accruing in the year on all financial assets with an implicit or explicit return, calculated by applying the effective interest method, irrespective of measurement at fair value, and the rectifications of income as a result of hedge accounting. Interest is recognized gross, without deducting any tax withheld originally. The detail of the main items of interest and similar income earned in 2025 and 2024 is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Derivatives - Trading | 59 | 57 | | Of which: Interest income derived from economic hedges | 59 | 57 | | Debt instruments | 4,565 | 4,100 | | Central Banks | 68 | 80 | | Public sector | 2,868 | 2,258 | | Credit entities | 763 | 832 | | Other financial companies | 738 | 845 | | Non-financial companies | 128 | 85 | | Loans and advances | 17,105 | 19,247 | | Central Banks | 48 | 45 | | Public sector | 519 | 526 | | Credit entities | 2,494 | 3,137 | | Other financial companies | 5,429 | 5,403 | | Non-financial companies | 5,842 | 7,022 | | Households | 2,773 | 3,114 | | Other assets | 2,551 | 3,489 | | Of which, insurance contracts linked to pensions (note 23.c) | 13 | 14 | | Deposits | 31 | 73 | | Central Banks | — | — | | Public sector | — | 12 | | Credit entities | 2 | 7 | | Other financial companies | 28 | 51 | | Non-financial companies | 1 | 3 | | Households | — | — | | Hedging derivatives - Interest rate risk | 359 | 61 | | Other financial liabilities | 2 | — | | Debt securities issued | — | — | | Total | 24,672 | 27,027 | Most of the interest and similar income was generated by Banco Santander's financial assets that are measured either at amortized cost or at fair value through Other comprehensive income. 35. Interest expense Interest expense and similar charges in the accompanying income statements includes the interest accruing in the year on all financial liabilities with an implicit or explicit return, including remuneration in kind, calculated by applying the effective interest method, irrespective of measurement at fair value; the rectifications of cost as a result of hedge accounting; and the interest cost attributable to provisions recorded for pensions. The detail of the main items of interest expense and similar charges accrued in 2025 and 2024 is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Derivatives - Trading | 277 | 77 | | Of which: interest income from derivatives in economic hedges | 277 | 77 | | Debt securities Issued | 4,567 | 4,948 | | Debt securities | 40 | 30 | | Central Banks | — | — | | Public sector | 12 | 6 | | Credit entities | 2 | 2 | | Other financial companies | 25 | 21 | | Non-financial companies | 1 | 1 | | Loans and advances | 11 | 13 | | Central Banks | — | — | | Public sector | — | — | | Credit entities | 1 | 8 | | Other financial companies | 9 | 5 | | Non-financial companies | 1 | — | | Households | — | — | | Deposits | 11,015 | 12,901 | | Central Banks | 466 | 695 | | Public sector | 1,139 | 1,205 | | Credit entities | 2,652 | 2,697 | | Other financial companies | 4,067 | 4,672 | | Non-financial companies | 2,237 | 2,871 | | Households | 454 | 761 | | Other financial liabilities | 1,008 | 785 | | Hedging derivatives - Interest rate risk | 1,204 | 1,309 | | Pensions and other obligations of defined post-employment benefits (note 23) | 48 | 49 | | Others | — | — | | Total | 18,170 | 20,112 | Most of the interest expense and similar charges was generated by Banco Santander's financial liabilities that are measured at amortized cost. 142 36. Dividend income ‘Dividend income’ includes the dividends and payments on equity instruments out of profits generated by investees after the acquisition of the equity interest. The detail of income from equity instruments is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Financial assets held for trading | 550 | 513 | | Non-trading financial assets mandatorily at fair value through profit or loss | 9 | 9 | | Financial assets at fair value through other comprehensive income | 62 | 90 | | Investments in subsidiaries, jointly controlled entities and associates | 6,070 | 7,113 | | Subsidiaries | 6,021 | 7,065 | | Associates | 49 | 48 | | Total | 6,691 | 7,725 | Investments in subsidiaries, jointly controlled entities and associates The detail of the main items of interest expense and similar charges accrued in 2025 and 2024 is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Detail of the companies: | | | | SANTANDER HOLDINGS USA, INC | 1,157 | 1,066 | | BANCO SANTANDER TOTTA, S.A. | 1,117 | — | | GRUPO FINANCIERO SANTANDER MEXICO, S.A. DE C.V. | 808 | 1,292 | | SANTANDER CONSUMER FINANCE, S.A. | 600 | 500 | | SANTANDER TOTTA, SGPS, S.A. | 438 | 979 | | SANTANDER INSURANCE, S.L. | 359 | 413 | | BANCO SANTANDER MEXICO, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México | 276 | 476 | | INVESTMENT HOLDINGS 1857, S.L. | 203 | — | | SANTANDER UK GROUP HOLDINGS PLC (AT1) | 166 | 145 | | SANTANDER HOLDINGS USA, INC (PERPETUAL PREFERRED STOCK) | 154 | 164 | | SAM INVESTMENT HOLDINGS, S.L. | 122 | 97 | | TEATINOS SIGLO XXI INVERSIONES, S.A. | 98 | 58 | | SANTANDER CONSUMER FINANCE S.A. (AT1) | 93 | 93 | | TRESMARES SANTANDER DIRECT LENDING, SICC, S.A. | 79 | 54 | | BANCO SANTANDER, S.A. (Uruguay) | 70 | 69 | | MERLIN PROPERTIES, SOCIMI, S.A. | 46 | 42 | | OPEN BANK, S.A. Unipersonal | 45 | 63 | | SANTANDER CHILE HOLDING S.A. | 44 | 27 | | SANTANDER TOTTA, SGPS, S.A. (AT1) | 44 | 20 | | BANCO SANTANDER PERU S.A. | 30 | 27 | | SOCUR S.A. | 28 | 7 | | PEREDA GESTION, S.A. | 9 | 24 | | SANTANDER GLOBAL TECHNOLOGY AND OPERATIONS, S.L. UNIPERSONAL | 5 | 23 | | SANTANDER UK GROUP HOLDINGS PLC | — | 1,203 | | SANTANDER INVESTMENT, S.A. | — | 110 | | SANTANDER INVESTMENT CHILE LIMITADA | — | 35 | | NAVIERA TRANS ORE, A.I.E. | — | 32 | | SANTANDER FACTORING Y CONFIRMING, S.A. Unipersonal E.F.C. | — | 28 | | Other companies | 79 | 66 | | Total | 6,070 | 7,113 | 143 37. Commission income Fee and commission income comprise the amount of all fees and commissions accruing in favour of Banco Santander in the year, except those that form an integral part of the effective interest rate on financial instruments. The detail of fee and commission income in the accompanying income statements for 2025 and 2024 is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Collection and payment services: | 591 | 594 | | Current Accounts | 177 | 186 | | Credit and debit cards | 256 | 230 | | Transfers and other payment orders | 121 | 138 | | Other commission income in connection with payment services | 37 | 40 | | Marketing of non-banking financial products: | 789 | 752 | | Collective Investment | 464 | 556 | | Insurance | 229 | 195 | | Other | 96 | 1 | | Securities services: | 418 | 288 | | Securities underwriting and placement | 171 | 163 | | Transfer orders | 160 | 19 | | Other | 87 | 106 | | Clearing and settlement | — | 73 | | Asset management | 210 | 161 | | Custody | 79 | 70 | | Structured finance | 658 | 517 | | Loan granted commitments granted | 401 | 384 | | Financial granted guarantees granted | 331 | 329 | | Other: | 671 | 623 | | Foreign currency exchange | 149 | 159 | | Other concepts | 522 | 464 | | Total | 4,148 | 3,791 | 38. Commission expense Fee and commission expense show the amount of all fees and commissions paid or payable by Banco Santander in the year, except those that form an integral part of the effective interest rate on financial instruments. The detail of fee and commission expense in the accompanying income statements for 2025 and 2024 is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Clearing and settlement | 85 | 69 | | Loan commitments received | — | — | | Financial guarantees received | 206 | 180 | | Custody | 1 | 1 | | Other A | 716 | 616 | | Total | 1,008 | 866 | A. Other Includes mainly commissions paid for financial and mediation services, as well as credit cards. 39. Gains or losses on financial #### assets and liabilities The following information is presented below regarding the gains or losses on financial assets or liabilities: #### a) Breakdown The detail, by classification of the related instrument, of Gains/losses on financial assets and liabilities in the accompanying income statements for 2025 and 2024 is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Gains or losses on financial assets and liabilities not measured at fair value through profit or loss, net | 100 | (97) | | Financial assets at amortized cost | (34) | (47) | | Other financial assets and liabilities | 134 | (50) | | Of which, debt instruments | 110 | (61) | | Of which, equity instruments | — | — | | Gains or losses on financial assets and liabilities held for trading, netA | 494 | 704 | | Gains or losses on non-trading financial assets and liabilities mandatory at fair value through profit or loss | 80 | 73 | | Gains or losses on financial assets and liabilities measured at fair value through profit or loss, net A | (2) | 350 | | Gains or losses from hedge accounting, net | (16) | (6) | | Total | 656 | 1,024 | A. Includes the net income obtained from transactions with debt securities, capital instruments, derivatives and short positions included in this portfolio when the Banco Santander jointly manages its risk in those instruments. 144 #### b) Financial assets and liabilities at fair value #### through profit or loss The detail of the amount of the asset balances is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Loans and receivables | 64,250 | 54,181 | | Central Banks | 657 | 1,239 | | Credit institutions | 26,906 | 24,008 | | Customers | 36,687 | 28,934 | | Debt instruments A | 55,778 | 43,519 | | Equity instruments | 22,154 | 17,216 | | Derivatives | 46,583 | 52,462 | | Total | 188,765 | 167,378 | A. Include EUR 46,640 million related to Spanish and foreign government debt securities at 31 December 2025 (31 December 2024 , EUR 36,497 million). The foregoing table shows the maximum credit risk exposure of these assets at 31 December 2025 and 2024, respectively. Banco Santander mitigates and reduces this exposure as follows. With respect to derivatives, Banco Santander has entered into framework agreements with a large number of credit institutions and customers for the netting-off of asset positions and the provision of collateral for non-payment. 'Loans and receivable' to credit institutions and loans and receivable to 'customers' included reverse repos amounting to EUR 95,381 million at 31 December 2025 (31 December 2024: EUR 80,003 million). In addition, assets amounting to EUR 416 million have a mortgage guarantee at 31 December 2025 (31 December 2024: EUR 578 million). At 31 December 2025 and 2024, the amount of the change in the year in the fair value of financial assets at fair value through profit or loss attributable to variations in their credit risk (spread) was not material. The detail of the amount of the liability balances is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Deposits | 101,789 | 79,698 | | Central Banks | 8,551 | 10,897 | | Credit Institutions | 32,123 | 26,991 | | Customers | 61,115 | 41,810 | | Marketable debt instruments | 1,587 | 1,069 | | Short positions | 30,694 | 25,518 | | Derivatives | 41,524 | 46,121 | | Total | 175,594 | 152,406 | At 31 December 2025 and 2024, the amount of the change in the fair value of financial liabilities at fair value through profit or loss attributable to changes in their credit risk during the year is not material. 40. Exchange differences, net This chapter basically includes the results obtained in the purchase and sale of currencies, the differences that arise when converting monetary items in foreign currency to functional currency and those from non- monetary assets in foreign currency at the time of disposal. The detail of ‘Exchange differences (net)’ in the accompanying income statements for 2025 and 2024 is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Foreign currency purchases and sales | 217 | (106) | Banco Santander manages the currencies to which it is exposed together with the arrangement of derivative instruments and, accordingly, the changes in this line item should be analyzed together with those recognized under Gains or losses on financial assets and liabilities (see note 39). 145 41. Other operating income and #### other operating expenses The detail of ‘Other operating income’ in the accompanying income statements for 2025 and 2024 , is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Exploitation of real estate investments and operating leases | 138 | 277 | | Others | 296 | 298 | | Total | 434 | 575 | The detail of ‘Other operating expenses’ in the accompanying income statements for 2025 and 2024 is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Contribution to Deposit Guarantee Fund and Resolution Fund (note 1.h)A | (14) | (16) | | Other operating expensesB | (220) | (609) | | Total | (234) | (625) | A. Includes the expense incurred by contribution to the National Resolution Fund and to the Single Resolution Fund. B. It included, at 31 December 2024, EUR 290 million for the temporary tax on credit institutions (Law 38/2022).c In the 2025 and 2024 financial years, it was decided that there will not be contribution in Spain to the Single Resolution Fund, as well as a decrease in the contribution to the Deposit Guarantee Fund, by the Single Resolution Board (SRB) and the Deposit Guarantee Fund  Management Committee, respectively. 146 42. Staff costs a) Breakdown The detail of ‘Staff costs’ in 2025 and 2024 is as follows: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | | | | | | | 2025 | | | 2024 | | | | | Of which, in Spain | Of which, foreign branches | Total | Of which, in Spain | Of which, foreign branches | Total | | Wages and salaries | 1,932 | 664 | 2,596 | 1,862 | 638 | 2,500 | | Social security costs | 379 | 69 | 448 | 378 | 63 | 441 | | Additions to provisions for defined benefit pension plans (note 23) | 2 | — | 2 | 2 | — | 2 | | Contributions to defined contribution pension funds (note 23) | 84 | 27 | 111 | 82 | 26 | 108 | | Equity-instrument-based remuneration | — | — | — | — | — | — | | Other staff costs | 133 | 34 | 167 | 124 | 35 | 159 | | Total | 2,530 | 794 | 3,324 | 2,448 | 762 | 3,210 | b) Headcount The average number of employees at the Bank, by professional category, is as follows: | | | | | --- | --- | --- | | | | | | Average number of employees | | | | | 2025 | 2024 | | Executive directors and Senior management | 17 | 15 | | Other employees | 20,963 | 21,642 | | Branches abroad | 2,227 | 2,182 | | Total | 23,207 | 23,839 | The number of employees, as of December 31, 2025 and December 31, 2024, is 22,856 and 23,569, respectively. The functional breakdown, by gender, at 31 December 2025, is as follows: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | | Breakdown by gender | | | | | | Executives | | Other line personnel | | | | Men | Women | Men | Women | | Breakdown by gender | 82% | 18% | 49% | 51% | The labour relations between employees and the various Group companies and, therefore, the Bank are governed by the related collective agreements or similar regulations. The number of employees with disabilities greater than or equal to 33%, distributed by professional categories at December 31, 2025 and 2024 , is as follows: | | | | | --- | --- | --- | | | | | | | 2025 | 2024 | | Senior executives | — | — | | Other executives | 29 | 27 | | Other employees | 384 | 405 | | Total | 413 | 432 | The average number of employees of Banco Santander with a disability greater than or equal to 33%, during the year 2025 was 419 (435 at 2024). #### c) Share-based payments The main share-based payments granted by the Group in force at 31 December,  2025 and 2024 are described below. i. Bank The variable remuneration policy for the Bank’s executive directors and certain executive personnel of the Bank and of other Group companies includes Bank share-based payments, the implementation of which requires, in conformity with the law and the Bank’s Bylaws, specific resolutions to be adopted by the general meeting. 147 Were it necessary or advisable for legal, regulatory or other similar reasons, the delivery mechanisms described below may be adapted in specific cases without altering the maximum number of shares linked to the plan or the essential conditions to which the delivery thereof is subject. These adaptations may involve replacing the delivery of shares with the delivery of cash amounts of an equal value. The plans that include share-based payments are as follows: (i) Deferred and Conditional Variable Remuneration Plan; (ii) Deferred Multiyear Objectives Variable Remuneration Plan; (iii) Digital Transformation Award, (iv) Digital Transformation Award 2022, Digital Transformation Award 2023 and (vi) PagoNxt incentive Plan 2024 and 2025 for Santander executives. The characteristics of the plans are set forth below: | | | | | | --- | --- | --- | --- | | | | | | | Deferred variable remuneration systems | Description and plan beneficiaries | Conditions | Calculation Base | | (i) Deferred and conditional variable remuneration plan (2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023, 2024 and 2025) | The purpose of these cycles is to defer a portion of the variable remuneration of the beneficiaries over a period of three years for the sixth cycles, over three or five years for the fifth, seventh, eighth, ninth, tenth and eleventh cycles, and over four or five years for the twelfth cycle, for it to be paid, where appropriate, in cash and in Santander shares. The other portion of the variable remuneration is also to be paid in cash and Santander shares, upon commencement of the cycles, in accordance with the rules set forth below. Beneficiaries: • Executive directors and certain executives (including senior management) and employees who assume risk, who perform control functions or receive an overall remuneration which puts them on the same remuneration level as executives and employees who assume risks (fifth cycle) • In the case of the sixth, seventh, eighth, ninth, tenth, eleventh twelfth and thirteenth, fourteenth and fifteenth cycle the beneficiaries are Material Risk Takers (Identified staff) that are not beneficiaries of the Deferred Multiyear Objectives Variable Remuneration Plan. | For the fifth and sixth cycles (2015 to 2016), the accrual of the deferred compensation is conditioned, in addition to the requirement that the beneficiary remains in the Group's employ, with the exceptions included in the plan regulations on none of the following circumstances existing during the period prior to each delivery, pursuant to the provisions set forth in each case in the plan regulations: • Poor financial performance of the Group. • Breach by the beneficiary of internal regulations, including, in particular, those relating to risks. • Material restatement of the Group's consolidated financial statements, except when it is required pursuant to a change in accounting standards. • Significant changes in the Group’s economic capital or risk profile. In the case of the seventh, eighth, ninth, tenth, eleventh, twelfth, thirteenth, fourteenth and fifteenth cycles, the accrual of deferred compensation is conditioned, in addition to the permanence of the beneficiary in the Bank, with the exceptions contained in the plan's regulations, to non-occurrence of a poor performance of the entity as a whole or of a specific division or area of the entity or of the exposures generated by the personnel: i. significant failures in risk management by the entity , or by a business unit or risk control unit. ii. the increase suffered by the entity or by a business unit of its capital needs, not foreseen at the time of generation of the exposures. iii. Regulatory sanctions or judicial sentences for events that could be attributable to the unit or the personnel responsible for those. Also, the breach of internal codes of conduct of the entity. iv. Irregular behaviours, whether individual or collective, considering in particular the negative effects derived from the marketing of inappropriate products and the responsibilities of the persons or bodies that made those decisions. | Fifth cycle (2015): • Executive directors and members of the Identified Staff with total variable remuneration higher than 2.6 million euros: 40% paid immediately and 60% deferred over 5 years deferral period. • Division managers, country heads (of countries which represent at least 1% of Group's economic capital), other executives of the Group with a similar profile and members of the Identified Staff  with total variable remuneration between 1.7 million euros (1.8 million in fourth cycle) and 2.6 million euros: 50% paid immediately and 50% deferred over 5 years (fifth cycle) • Other beneficiaries: 60% paid immediately and 40% deferred over 3 years. Sixth cycle (2016): • 60% of bonus will be paid immediately and 40% deferred over a three years period. Seventh, eighth, ninth, tenth and eleventh cycle (2017, 2018, 2019, 2020 and 2021): • Beneficiaries of these plans with target total variable remuneration higher or equal to 2.7 million euros: 40%  paid immediately and 60% deferred over 5 years • Beneficiaries of these plans with target total variable remuneration between 1.7 million euros and 2.7 million euros: 50% paid immediately and 50%paid over 5 years • Other beneficiaries of these plans: 60% paid immediately and 40% deferred over 3 years. Twelfth (2022),thirteenth (2023), fourteenth (2024) and fifteenth (2025) cycle: • Beneficiaries of these plans with target total variable remuneration higher or equal to 2.7 million euros: 40% paid immediately and 60% deferred over 5 years • Beneficiaries of these plans with target total variable remuneration between 1.7 million euros and 2.7 million euros: 50% paid immediately and 50% paid over 5 years • Other beneficiaries of these plans: 60% paid immediately and 40% deferred over 4 years . T | 148 | | | | | | --- | --- | --- | --- | | | | | | | Deferred variable remuneration systems | Description and plan beneficiaries | Conditions | Calculation Base | | (ii)Deferred Multiyear Objectives Variable Remuneration Plan (2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023, 2024 and 2025) | The aim is simplifying the remuneration structure, improving the ex ante risk adjustment and increasing the impact of the long- term objectives on the Group’s most relevant roles. The purpose of these cycles is to defer a portion of the variable remuneration of the beneficiaries over a period of three or five years (four or five years for the seventh cycle) for it to be paid, where appropriate, in cash and in Santander shares; the other portion of the variable remuneration is also to be paid in cash and Santander shares (regarding the instruments part, executive directors in the seventh cycle have the opportunity to choose all in share options or half in share options and half in shares), upon commencement of the cycles, in accordance with the rules set forth below. The accrual of the last third of the deferral (in the case of 3 years deferral), the last 2 fourths (in the case of 4 years deferral) and the last three fifths (in the case of 5 years deferral) is also subject to long-term objectives. Beneficiaries Executive directors, senior management and certain executives of the Group’s first lines of responsibility. | In 2016 the accrual is conditioned, in addition to the permanence of the beneficiary in the Group, with the exceptions contained in the plan’s regulations, to non- occurrence of the following circumstances during the period prior to each of the deliveries in the terms set forth in each case in the plan’s regulations: i. Poor performance of the Group. ii. Breach by the beneficiary of the internal regulations, including in particular that relating to risks. iii. Material restatement of the Group’s consolidated financial statements, except when appropriate under a change in accounting regulations. iv. Significant changes in the Group’s economic capital or risk profile. In 2017, 2018, 2019, 2020 and 2021 the accrual is conditioned, in addition to the beneficiary' permanence in the Group, with the exceptions contained in the plan’s regulations, to the non-occurrence of poor financial performance from the entity as a whole or of a specific division or area thereof or of the exposures generated by the personnel, taking into account the following factors: v. Significant failures in risk management committed by the entity, or by a business unit or risk control unit. vi. the increase suffered by the entity or by a business unit of its capital needs, not foreseen at the time of generation of the exposures. vii. Regulatory sanctions or court rulings for events that could be attributable to the unit or the personnel responsible for those. Also, the breach of internal codes of conduct of the entity. viii. Irregular behaviours, whether individual or collective, considering in particular negative effects derived from the marketing of inappropriate products and responsibilities of persons or bodies that made those decisions. Paid half in cash and half in shares. In the seventh cycle, and only for executive directors: half in cash and 25% in share options and 25% in shares (unless the director chooses to receive options only). The maximum number of shares to be delivered is calculated by taking into account the weighted average daily volume of weighted average prices for the fifteen trading sessions prior to the previous Friday (excluding) on the date on which the board decides the bonus for the Executive directors of the Bank. In the eighth cycle, and for all Identified Staff: half in cash and 25% in shares and 25% in share options, or half in cash and half in shares, according to each executive´s choice. In the ninth and tenth cycle, half in cash and half in shares. | First cycle (2016): Executive directors and members of the Identified Staff with total variable remuneration higher than or equal to 2.7 million euros: 40% paid immediately and 60% deferred over a 5 years  period. Senior managers, country heads of countries representing at least 1% of the Group´s capital and other members of the identified staff whose total variable remuneration is between 1.7 million and 2.7 million euros: 50% paid immediately and 50% deferred over a 5 years period. Other beneficiaries: 60% paid immediately and 40% deferred over a 3 years period. The second, third, fourth, fifth and sixth cycles (2017, 2018, 2019,2020 and 2021 respectively) are under the aforementioned deferral rules, except that the  variable remuneration considered is the target for each executive and not the actual award. In 2016 the metrics for the deferred portion subject to long-term objectives (last third or last three fifths, respectively, for the cases of three years and five years deferrals) are: Earnings per share (EPS) growth in 2018 over 2015. Relative Total Shareholder Return (TSR) in the 2016-2018 period measured against a group of credit institutions. Compliance with the fully-loaded common equity tier 1 (“CET1”) ratio target for financial year 2018. Compliance with Grupo Santander’s underlying return on risk-weighted assets (“RoRWA”) growth target for financial year 2018 compared to financial year 2015. In the second, third, fourth, fifth and sixth cycle (2017, 2018, 2019, 2020 and 2021) the metrics for the deferred portion subject to long-term objectives (last third or last three fifths, respectively, for the cases of three years and five years deferrals) are: EPS growth in 2019, 2020, 2021, 2022 and 2023 (over 2016, 2017, 2018, 2019 and 2020, for each respective cycle) Relative Total Shareholder Return (TSR) measured against a group of 17 credit institutions (second and third cycles) in the periods 2017-2019 and 2018-2019, respectively, and against a group of 9 entities (fourth, fifth and sixth cycle) for the 2019-2021, 2020-2022 and 2010-2023  period. Compliance with the fully-loaded common equity tier 1 (“CET1”) ratio target for financial years 2019, 2020, 2021,2022 and 2023, respectively. In the seventh (2022), eighth cycle (2023), ninth (2025) and tenth cycle (2025), the metrics for the deferred portion subject to long-term objectives (two last fourths and last three fifths, for the cases of four years and five years deferrals) are: • Banco Santander's consolidated Return on tangible equity (RoTE) target in 2024 (7th cycle) and 2025 (8th cycle) and 2026 (9th cycle). • Relative Total Shareholder Return (TSR) measured against a group of 9 credit institutions for the period 2022-2024 (7th cycle), 2023-2025 (8th cycle) and 2024-2026 (9th cycle). • Progress level in the public targets of our Sustainability agenda. | 149 | | | | | | --- | --- | --- | --- | | | | | | | Deferred variable remuneration systems | Description and plan beneficiaries | Conditions | Calculation Base | | (iii) Digital Transformation Award (2019, 2020 and 2021) | The 2019, 2020 and 2021 Digital Transformation Incentive (the “Digital Incentive”) is a variable remuneration system that includes the delivery of Santander shares and share options. The aim of the Digital Incentive is to attract and retain the critical skill sets to support and accelerate the digital transformation of the Group. By means of this program, the Group offers a remuneration element which is competitive with the remuneration systems offered  by other market operators who also compete for digital talent. The number of beneficiaries is limited to a maximum of 250 employees and the total amount of the incentive is limited to 30 million euros. | The funding of this incentive is subject to meeting important milestones that are aligned with the Group´s digital roadmap and have been approved by the board of directors, taking into account the digitalization strategy of the Group, with the aim of becoming the best open, responsible global financial services platform. Performance of 2019 incentive was measured based on achievement of the following milestones: (i) Launch of a Global Trade Services (GTS) platform; (ii) launch of a Global Merchant Services (GMS) platform; (iii) migration of our fully digital bank, OpenBank, to a "next generation" platform and launch in 3 markets; (iv) extension of SuperDigital in Brazil to at least one other country; (v) and launch of our international payments app based on blockchain Pago FX to non- Santander customers. The milestones for the 2020 Digital Transformation Award were: (i) rolling out the global merchant services (GMS) platform in 3 new geographies, enhancing the platform functionality and achieving volume targets for transactions and participating merchants; (ii) doing the commercial rollout of the global trade services (GTS) platform in 8 new geographies, enhancing platform functionality, and achieving  volume targets for on- boarded clients and monthly active users; (iii) launching OpenBank in a new market and migrating the retail banking infrastructure to “new-mode” bank; (iv) launch the global platform SuperDigital in at least 4 countries, driving target active user growth; (v) deploying machine learning across pre-defined markets for 4 priority use cases, rolling out Conversion Rate Optimization (Digital marketing) for at least 40 sales programs, delivering profit targets, and driving reduction of agent handled calls in contact centers; (vi) successfully implementing initiatives related to on- board and identity services, common API (application programming interface) layer, payment hubs, mobile app for SMEs and virtual assistant services; and (vii) launching the PagoFX global platform in at least 4 countries. The milestones for 2021 were: (i)in relation to Pago Nxt Consumer payment platform: implementation of Superdigital platform in seven countries, acquisition of over 1.5 million active customer base and accelerating growth through B2B (business to business) and B2B2C (business to business to customer) partnerships, acquiring more than 50% of the new customers through these channels, which are more cost-effective; (ii)in relation to Digital Consumer Bank: launching online API for checkout lending in the European Union and completion of controllable items for Openbank launch in USA; (iii)in relation to One Santander strategy: implementation in Europe of One Common Mobile Experience and, specifically, implementation of Europe ONE app for individual customers in at least three of the four countries by December 2021; and be among the three-top rated entities in terms of Mobile NetPromoter Score (Mobile NPS) in at least two of the four countries by December 2021; (iv) In relation to cloud adoption: host 75% of migratable virtual machines on cloud technology (either public cloud or OHE) by December 2021. For these purposes, mainframes, physical servers and servers with non-x86 operating systems will be considered non-migratable. | The Digital Incentive is structured 50% in Santander shares and 50% in options over Santander shares, taking into account the fair value of the option at the moment in which they are granted. For Material Risk Takers subject to five years deferrals, the Digital Incentive (shares and options over shares) shall be delivered in thirds, on the third, fourth and fifth anniversary from their granting. For Material Risk Takers subject to three years deferrals and employees not subject to deferrals, delivery shall be done on the third anniversary from their granting. Any delivery of shares, either directly or via exercise of options overs shares, will be subject generally to the Group’s general malus & clawback provisions as described in the Group’s remuneration policy and to the continuity of the beneficiary within the Group Santander. In this regard, the board may define specific rules for non-Identified Staff. Vested share options can be exercised until maturity, with all options lapsing after ten years (for granting the 2019 incentive) and eight years (for granting the 2020 and 2021 incentive). The total achievement for 2021 Digital Incentive was 77.5% (85% en 2020 and 83% en 2019). | 150 | | | | | | --- | --- | --- | --- | | | | | | | Deferred variable remuneration systems | Description and plan beneficiaries | Conditions | Calculation base | | (iv) Digital Transformation Award (2022) | The board of directors approved the 2022 Digital Transformation Incentive. It is a variable remuneration scheme splits in two different blocks: • The first one, with the same mechanism than previous years, that delivers Santander shares and share options if the group hits major milestones on its digital roadmap. This is aimed at a group of up to 250 (is limited to 30 million euros)employees whose functions are deemed essential to Santander’s growth. • And the second one, which delivers PagoNxt, S.L. RSUs and premium prices options (PPOs), and is aimed at up to 50 employees (and limited to 15 million euros) whose roles are considered key to PagoNxt’s success. The aim of the Digital Incentive is to attract and retain the critical skill sets to support and accelerate the digital transformation of the Group. By means of this program, the Group offers a remuneration element which is competitive with the remuneration systems offered  by other market operators who also compete for digital talent. | Performance of the first block of the  incentive shall be measured based on achievement of the following milestones: i. Edelweiss: Our Santander future retail architecture EDELWEISS will mean moving from our current Core centric banking architecture towards a Customer and Data-Centric Core supported by lean Record Processing engines. ii. Simplification: Speed up the simplification of our technology platform and business model by Reducing the total number of applications in production and reducing number of products in the regions. iii. Agile: Agile ways of working enable a better and faster reaction to customers’ needs and is based on a value-driven delivery that increases efficiency by reducing time-to-market and development costs, and increasing quality. People working in Agile are more collaborative, engaged, empowered and creative. iv. In Digital Consumer Bank: a) To create the BNPL platform connected to at least one merchant in Netherlands and Germany, and to make sure the platform is ready to connect in Spain. b) To support the definition of Openbank US’s IT digital strategy and achieve 2022 milestones in it. c) To have the new leasing platform connected to dealers in Italy. d) To expand the Wabi B2B online business to Germany. To execute the first B2B deal with an Original Equipment Manufacturer or mobility player in at least one country. To expand coches.com business and platform to Portugal. And in regard to the second block of digital incentive: the consolidation of PagoNxt Core Perimeter. | The first block of thee Digital Incentive is structured 50% in Santander shares and 50% in options over Santander shares, taking into account the fair value of the option at the moment in which they are granted. For Material Risk Takers subject to five years deferrals, the Digital Incentive (shares and options over shares) shall be delivered in thirds, on the third, fourth and fifth anniversary from their granting. For Material Risk Takers subject to three years deferrals and employees not subject to deferrals, delivery shall be done on the third anniversary from their granting. Any delivery of shares, either directly or via exercise of options overs shares, will be subject generally to the Group’s general malus & clawback provisions as described in the Group’s remuneration policy and to the continuity of the beneficiary within the Grupo Santander. In this regard, the board may define specific rules for non-Identified Staff. Vested share options can be exercised until maturity, with all options lapsing after ten years . The total achievement for 2022 Digital Incentive was 96.5%. The second block of Digital Incentive is structures in restricted stock units (RSUs) and premium priced Options (PPOs) of PagoNxt, S.L. in a percentage determined by the internal category of the beneficiary. The total achievement for 2022 was 100%. | | | | | | | --- | --- | --- | --- | | | | | | | (v) Digital Transformation Award (2023) | The board of directors approved the 2023 Digital Transformation Incentive. It is a variable remuneration scheme  which delivers PagoNxt, S.L. RSUs and premium prices options (PPOs), and is aimed at up to 50 employees (and limited to 15 million euros) whose roles are considered key to PagoNxt’s success. With this program, the Group offers a remuneration element which is competitive with the remuneration systems offered  by other market operators who also compete for digital talent. | And the performance conditions were focus on key digital projects related with PagoNxt's main businesses (Trade, Merchant and Payments) in its core geographies. | This incentive  is structures in restricted stock units (RSUs) and premium priced Options (PPOs) of PagoNxt S.L. in a percentage determined by the internal category of the beneficiary. The average achievement for 2023 was 88%. | | | | | | | --- | --- | --- | --- | | | | | | | (vi) PagoNxt incentive Plan 2024 and 2025 for Santander executives | The board of directors approved the PagoNxt incentive Plan 2024 and 2025 Incentive. It is a variable remuneration scheme  which delivers PagoNxt, S.L. RSUs, and is aimed at approximately  to 50 - 60 employees whose roles are considered key to PagoNxt’s success. With this program, the Group offers a remuneration element which is competitive with the remuneration systems offered  by other market operators who also compete for digital talent. | And the performance conditions were focus on key digital projects related with PagoNxt's main businesses (Trade, Merchant and Payments) in its core geographies. | This incentive  is structures in restricted stock units (RSUs) of PagoNxt S.L. in a percentage determined by the internal category of the beneficiary. The average achievement for 2024 was 77% and  85% in 2025. | 151 ii. Fair value The fair value of the performance share plans was calculated as follows: – Deferred variable compensation plan linked to multi-year objectives 2024 and 2025 : The Group calculates at the grant date the fair value of the plan based on the valuation report of an independent expert, Willis Towers Watson. According to the design of the plan for 2024 and 2025 and the levels of achievement of similar plans in comparable entities, it has been considered that the fair value is 70%. 43. Other general #### administrative expenses a) Breakdown The detail of Other general administrative expenses in the accompanying income statements for 2025 and 2024 is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Technology and systems | 802 | 761 | | Fixtures and supplies | 102 | 124 | | Other administrative expenses | 717 | 734 | | Technical reports | 165 | 148 | | Advertising | 99 | 98 | | Per diems and travel expenses | 68 | 66 | | Surveillance and cash courier services | 40 | 39 | | Communications | 39 | 33 | | Taxes other than income tax | 47 | 61 | | Insurance premiums | 16 | 19 | | Total | 2,095 | 2,083 | #### b) Technical reports and other Technical reports include the fees from the various Group companies (detailed in the accompanying appendices) for the services provided by their respective auditors, with the following detail: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025A | 2024A | | Audit | 118.5 | 122.3 | | Audit-related services | 15.0 | 13.6 | | Tax services | 0.1 | 0.9 | | All other | 7.1 | 7.4 | | Total | 140.7 | 144.2 | A. Of those corresponding to Banco Santander, S.A. EUR 35.1  million, EUR 2.9 million , EUR 0 million and EUR 1.5 million, respectively, as of December 31, 2025 (EUR 32.3 million, EUR 3.6 million , EUR 0.1 million and EUR 1.1 million, respectively, as of December 31, 2024); and Branches of Banco Santander, S.A., EUR 1.0 million, EUR 1.2 million, EUR 0 million and EUR 0 million, respectively, as of December 31, 2025 (EUR 0.7 million, EUR 1.9 million, EUR 0 million and EUR 0 million, respectively, as of December 31, 2024). Additionally, the firm BDO has performed audit and audit-related services totaling 1.9 million. The audit services and main non-audit services included for each item in the above breakdown are detailed as follows: • Audit services: audit of the individual and consolidated financial statements of Banco Santander and its subsidiaries (of which PwC or another network firm is the external auditor); audit of the interim consolidated financial statements of Banco Santander; integrated audits prepared in order to file the Form 20-F  with the SEC  and the internal control audits (SOx) for required Group's entities; limited reviews of financial statements; and regulatory reports required to the external auditors regarding several  Grupo Santander entities. • Audit-related services: issuance of comfort letters, verification services of financial and non-financial information required by regulators, and other reviews of documentation to be submitted to domestic or foreign authorities that, due to their nature, the external auditor typically provides. • Tax services: tax compliance and advisory services provided to Group companies outside Spain, which have no direct effect on the audited financial statements and are permitted in accordance with the applicable independence regulations. • Other services: agreed-upon procedure reports, assurance reports and special reports performed under the accepted profession's standards; as well as other reports required by the regulators. 152 The 'Audit' heading includes the fees for the year's audit, regardless of the date the audit was completed. Any subsequent adjustments, which are not significant, are shown in this note for each year for comparison purposes. The fees corresponding to the rest of the services are shown by reference to when the audit committee approved them. The services commissioned from the Group's auditors meet the independence requirements under applicable European and Spanish law, the SEC rules and the Public Company Accounting Oversight Board (PCAOB), applicable to the Group, and did not involve in any case the performance of any work that is incompatible with the auditor's role. Lastly, the Group commissioned services from audit firms other than PwC amounting to EUR 155.9 million in 2025 (EUR 206.2 million in 2024 ). #### c) Number of branches The number of offices according to their geographical location at 31 December 2025 and 2024 is as follows: | | | | | --- | --- | --- | | | | | | Number of branches | | | | | Group | | | 2025 | 2024 | | Spain | 1,674 | 1,877 | | Group | 5,450 | 6,209 | | | 7,124 | 8,086 | | | | | | --- | --- | --- | | | | | | Number of branches | | | | | Of which, Banco Santander | | | 2025 | 2024 | | Spain | 1,630 | 1,800 | | International | 11 | 10 | | Total | 1,641 | 1,810 | 44. Impairment or reversal of #### the impairment of investments in subsidiaries, joint ventures #### and associates or non-financial #### assets The detail of ‘Impairment losses on other assets (net)’ in the accompanying income statements for 2025 and 2024 is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Investments in subsidiaries, joint ventures or associates (note 13) | 1,498 | (241) | | Non-financial assets (notes 15 and 16) | (13) | (3) | | Total | 1,485 | (244) | 45. Gains or losses on non- financial assets and #### investments, net The detail of ‘Gains/(losses) on disposal of assets not classified as non-current assets held for sale’ in the accompanying income statements for 2025 and 2024 is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | On disposal of tangible assets | — | 5 | | On disposal of investments in subsidiaries, jointly controlled entities and associates | 11 | 5 | | Total | 11 | 10 | 153 46. Gains or losses on non- #### current assets held for sale not classified as discontinued operations The detail of ‘Gains/(losses) on non-current assets held for sale not classified as discontinued operations’ in the accompanying income statements for 2025 and 2024 is as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Impairment of non-current assets held for sale (note 12) | (38) | (61) | | Gain / (loss) on disposal | 4 | 3 | | Total | (34) | (58) | 47. Related parties The parties related to Banco Santander are deemed to include, in addition to its subsidiaries, associates and jointly controlled entities, Banco Santander's key management personnel (the members of its Board of Directors and the executive vice presidents, together with their close family members) and the entities over which the key management personnel may exercise significant influence or control. Following is a detail of the transactions performed by Banco Santander with its related parties at 31 December 2025 and 2024, distinguishing between subsidiaries, joint venture entities and associated entities, members of Banco Santander's board of directors, Banco Santander's executive vice presidents, and other related parties, Related party transactions were made on terms equivalent to those that prevail in arm's-length transactions or, when this was not the case, the related compensation in kind was recognized. | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR million | | | | | | | 2025 | | | | | | Subsidiaries, joint ventures and associated entities | Members of the Board of Directors A | Senior ManagementA | Other related parties A | | | | | | | | Assets | 151,454 | — | 18 | 295 | | Equity instruments | 98,356 | — | — | — | | Debt instruments | 15,314 | — | — | 2 | | Loans and advances | 37,784 | — | 18 | 274 | | From which: impaired financial assets | 56 | — | — | — | | Others | — | — | — | 19 | | Liabilities | 32,039 | 10 | 5 | 376 | | Deposits credit institution and clients | 28,881 | 10 | 5 | 376 | | Marketable debt securities | 3,158 | — | — | — | | Income statement | 7,464 | — | — | 7 | | Interest and similar income | 1,673 | — | — | 8 | | Interest expense and similar charges | (955) | — | — | (4) | | Interest from equity instruments | 6,070 | — | — | — | | Gains / (Losses) on financial instruments and other | 3 | — | — | — | | Fee and commission income | 816 | — | — | 4 | | Fee and commission expense | (143) | — | — | (1) | | Other | 22,717 | 4 | 3 | 189 | | Contingent liabilities | 13,534 | 3 | 2 | 61 | | Contingent commitments | 9,183 | 1 | 1 | 38 | | Financial instruments - derivatives | — | — | — | 90 | A. Includes transactions carried out with both Banco Santander and with other entities of Grupo Santander. 154 | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR million | | | | | | | 2024 | | | | | | Subsidiaries, joint ventures and associated entities | Members of the board of directors A | Senior Management | Other related parties A | | | | | | | | Assets | 148,025 | — | 14 | 226 | | Equity instruments | 100,142 | — | — | — | | Debt instruments | 17,429 | — | — | 5 | | Loans and advances | 30,454 | — | 14 | 221 | | From which: impaired financial assets | 158 | — | — | — | | Liabilities | 21,703 | 9 | 7 | 292 | | Deposits credit institution and clients | 20,558 | 9 | 7 | 292 | | Marketable debt securities | 1,145 | — | — | — | | Income statement | 10,181 | — | — | 4 | | Interest and similar income | 1,998 | — | — | 9 | | Interest expense and similar charges | (544) | — | — | (5) | | Interest from equity instruments | 7,803 | — | — | — | | Gains / (Losses) on financial instruments and other | 828 | — | — | — | | Fee and commission income | 132 | — | — | 1 | | Fee and commission expense | (36) | — | — | (1) | | Other | 17,889 | 4 | 3 | 216 | | Contingent liabilities | 7,796 | 3 | 2 | 64 | | Contingent commitments | 10,093 | 1 | 1 | 20 | | Financial instruments - derivatives | — | — | — | 132 | A. Includes transactions carried out with both Banco Santander and with other entities of Grupo Santander . In addition to the above breakdown, pension-linked insurance contracts with insurance undertakings belonging to the Santander Group amounted to EUR 173 million as at 31 December 2025 (EUR 186 million as at 31 December 2024). 155 48. Fair value of financial #### instruments #### a) Detail The following table summarises the fair values, at the end of each of the years indicated, of the financial assets and liabilities listed below, classified according to the different valuation methodologies used by the Bank to determine their fair value: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | | | | | | | 2025 | | | 2024 | | | | | Published price quotations in active Markets (Level 1) | Internal Models (Level 2 and 3) | Total | Published price quotations in active Markets (Level 1) | Internal Models (Level 2 and 3) | Total | | Financial assets held for trading | 75,490 | 106,454 | 181,944 | 59,302 | 101,123 | 160,425 | | Non-trading financial assets mandatorily at fair value through profit or loss | 9 | 1,914 | 1,923 | 21 | 2,106 | 2,127 | | Financial assets designated at fair value through profit or loss | — | 4,898 | 4,898 | — | 4,826 | 4,826 | | Financial assets at fair value through other comprehensive income | 6,136 | 9,584 | 15,720 | 9,511 | 5,801 | 15,312 | | Hedging derivatives (assets) | — | 1,359 | 1,359 | — | 1,917 | 1,917 | | Financial liabilities held for trading | 31,512 | 105,372 | 136,884 | 26,037 | 93,112 | 119,149 | | Financial liabilities designated at fair value through profit or loss | — | 38,710 | 38,710 | — | 33,257 | 33,257 | | Hedging derivatives (liabilities) | — | 2,284 | 2,284 | — | 2,516 | 2,516 | Grupo Santander has developed a formal process for the systematic valuation and management of financial instruments, which has been implemented worldwide across all the Group´s units. The governance scheme for this process, applicable to the Bank, distributes responsibilities between two independent divisions: Treasury (development, marketing and daily management of financial products) and Risk (on a periodic basis, validation of pricing models and daily risk certification of market data, computation of risk metrics, new transaction approval policies, management control  of market risk and implementation of fair value adjustment policies). The approval of new products follows a sequence of steps (request, development, validation, integration in corporate systems and quality assurance) before the product is brought into production. This process ensures that pricing systems have been properly reviewed and are stable before they are used. The following subsections set forth the most important products and families of derivatives, and the related valuation techniques and inputs, by asset class: Interest rate and inflation The fixed income asset class includes basic instruments such as interest rate forwards, interest rate swaps and cross currency swaps, which are valued using the net present value of the estimated future cash flows discounted taking into account basis (swap and cross currency spreads) determined on the basis of the payment frequency and currency of each leg of the derivative. Vanilla options, including caps, floors and swaptions, are priced using the Black-Scholes model, which is one of the benchmark industry models. More exotic derivatives are priced using more complex models which are generally accepted as standard across institutions. 156 These pricing models are fed with observable market data such as deposit interest rates, futures rates, cross currency swap and constant maturity swap rates, and basis spreads, on the basis of which different yield curves, depending on the payment frequency, and discounting curves are calculated for each currency. In the case of options, implied volatilities are also used as model inputs. These volatilities are observable in the market for cap and floor options and swaptions, and interpolation and extrapolation of volatilities from the quoted ranges are carried out using generally accepted industry models. The pricing of more exotic derivatives may require the use of non-observable data or parameters, such as correlation (among interest rates and cross-asset), mean reversion rates and prepayment rates, which are usually defined from historical data or through calibration. Inflation-related assets include zero-coupon or year- on-year inflation-linked bonds and swaps, valued with the present value method using forward estimation and discounting. Derivatives on inflation indices are priced using standard or more complex internal models. Valuation inputs of these models consider inflation- linked swap spreads observable in the market and estimations of inflation seasonality, on the basis of which a forward inflation curve is calculated. Also, implied volatilities taken from zero-coupon and year- on-year inflation options are also inputs for the pricing of more complex derivatives. Equity and foreign exchange The most important products in these asset classes are forward and futures contracts; they also include vanilla, listed and OTC (Over-The-Counter) derivatives on single underlying assets and baskets of assets. Vanilla options are priced using the standard Black-Scholes model and more exotic derivatives involving forward returns, average performance, or digital, barrier or callable features are priced using generally accepted industry models or internal models, as appropriate. For derivatives on illiquid stocks, hedging takes into account the liquidity constraints in models. The inputs of equity models consider yield curves, spot prices, dividends, asset funding costs (repo margin spreads), implied volatilities, correlation among equity stocks and indices, and cross-asset correlation. Implied volatilities are obtained from market quotes of European and American-style vanilla call and put options. Various interpolation and extrapolation techniques are used to obtain continuous volatility for illiquid stocks. Dividends are usually estimated for the mid and long term. Correlations are implied, when possible, from market quotes of correlation-dependent products. In all other cases, proxies are used for correlations between benchmark underlyings or correlations are obtained from historical data. The inputs of foreign exchange models include the yield curve for each currency, the spot foreign exchange rate, the implied volatilities and the correlation among assets of this class. Volatilities are obtained from European call and put options which are quoted in markets as of-the-money, risk reversal or butterfly options. Illiquid currency pairs are usually handled by using the data of the liquid pairs from which the illiquid currency can be derived. For more exotic products, unobservable model parameters may be estimated by fitting to reference prices provided by other non-quoted market sources. Credit The most common instrument in this asset class is the credit default swap (CDS), which is used to hedge credit exposure to third parties. In addition, models for first- to-default (FTD), n-to-default (NTD) and single-tranche collateralised debt obligation (CDO) products are also available. These products are valued with standard industry models, which estimate the probability of default of a single issuer (for CDS) or the joint probability of default of more than one issuer for FTD, NTD and CDO. Valuation inputs are the yield curve, the CDS spread curve and the recovery rate. For indices and important individual issuers, the CDS spread curve is obtained in the market. For less liquid issuers, this spread curve is estimated using proxies or other credit-dependent instruments. Recovery rates are usually set to standard values. For listed single-tranche CDO, the correlation of joint default of several issuers is implied from the market. For FTD, NTD and internal CDO, the correlation is estimated from proxies or historical data when no other option is available. Valuation adjustment for counterparty risk or default risk The Credit valuation adjustment (CVA) is a valuation adjustment to over-the-counter (OTC) derivatives as a result of the risk associated with the credit exposure assumed to each counterparty. The CVA is calculated taking into account potential exposure to each counterparty in each future period. The CVA for a specific counterparty is equal to the sum of the CVA for all the periods. The following inputs are used to calculate the CVA: • Expected exposure: including for each transaction the mark-to-market (MtM) value plus an add-on for the potential future exposure for each period. Mitigating factors such as collateral and netting agreements are taken into account, as well as a temporary impairment factor for derivatives with interim payments. 157 • Severity: percentage of final loss assumed in a counterparty credit event/default. • Probability of default: for cases where there is no market information (the CDS quoted spread curve, etc.), proxies based on companies holding exchange-listed CDS, in the same industry and with the same external rating as the counterparty, are used. • Discount factor curve. The Debit Valuation Adjustment (DVA) is a valuation adjustment similar to the CVA but, in this case, it arises as a result of the Bank’s own risk assumed by its counterparties in OTC derivatives. The CVA at 31 December 2025 , at a consolidated level, amounted to EUR 224 million (resulting in a decrease of 17.6% compared to 31 December 2024 ) and DVA amounted to EUR 285 million (resulting in a decrease of 10.1% compared to 31 December 2024). These decreases are primarily due to the performance of credit markets, with lower spreads compared to December 2024, and secondarily to changes in the composition of certain derivatives portfolios. Furthermore, the observed reduction in CVA is influenced by changes in the calculation models applicable to certain clients. Regarding the Bank, At the end of December 2025,  CVA amounted to EUR 130 million (EUR 180 million to 31 December 2024) and DVA amounted to EUR 134 million (EUR 134 million to 31 December 2024). In addition, the Group amounts the funding fair value adjustment (FFVA) is calculated by applying future market funding spreads to the expected future funding exposure of any uncollateralised component of the OTC derivative portfolio. This includes the uncollateralised component of collateralised derivatives in addition to derivatives that are fully uncollateralised. The expected future funding exposure is calculated by a simulation methodology, where available. The FFVA impact is not material for the annual accounts as of 31 December 2025 and 2024. During 2025, the Group has continued to apply the criteria for classifying financial instruments within the levels of the fair value hierarchy established to comply with regulatory expectations. These criteria, based on information from the price contributors and real market transactions, represent a significant reduction in the use of expert judgement to determine observability and allow the measurement of the significance of non- observable valuation inputs based on objective criteria. There has been an increase in instruments classified as Level 3, especially during the last quarter of the year. This increase is due to higher holding volumes of some of these instruments in the portfolio due to new trading activity. No significant reclassifications were detected due to changes in the market observability of the valuation inputs for the remaining positions. The main increases include long-term repo/reverse repo transactions, illiquid equities in non-trading portfolios, and syndicated loans with an HTC&S business model for which there is no observable market price based on the criteria used. In 2025, the amount reclassified to Level 3 by Banco Santander totalled EUR 266 million (EUR 754 million in 2024). This was mainly due to reclassifications to Level 3 of loan positions for which there was reduced access to price contributors and actual market transactions demonstrating their observability, and, to a lesser extent, to certain debt instruments which, based on the Bank’s criteria, do not meet the requirements to be considered observable instruments. Valuation adjustments due to model risk The valuation models described above do not involve a significant level of subjectivity, since they can be adjusted and recalibrated, where appropriate, through internal calculation of the fair value and subsequent comparison with the related actively traded price. However, valuation adjustments may be necessary when market quoted prices are not available for comparison purposes. The sources of risk are associated with uncertain model parameters, illiquid underlying issuers, and poor quality market data or missing risk factors (sometimes the best available option is to use limited models with controllable risk). In these situations, the Group and the Bank calculate and apply valuation adjustments in accordance with common industry practice. The main sources of model risk are described below: • In the interest rate markets, the sources of model risk include interest rate indexes correlations, basis spread modelling, the risk of calibrating model parameters and the treatment of near-zero or negative interest rates. Other sources of risk arise from the estimation of market data, such as volatilities or yield curves, whether used for estimation or cash flow discounting purposes. • In the stock markets, the sources of model risk include forward skew modelling, the impact of stochastic interest rates, correlation and multi-curve modelling. Other sources of risk arise from managing hedges of digital callable and barrier option payments. Also worthy of consideration as sources of risk are the estimation of market data such as dividends and correlation for quanto and composite basket options. 158 • For specific financial instruments relating to home mortgage loans secured by financial institutions in the UK (which are regulated and partially financed by the Government) and property asset derivatives, the main input is the Halifax House Price Index (HPI). In these cases, risk assumptions include estimations of the future growth and the volatility of the HPI, the mortality rate and the implied credit spreads. • Inflation markets are exposed to model risk resulting from uncertainty around modelling the correlation structure among various Consumer Price Index (CPI) rates. Another source of risk may arise from the bid-offer spread of inflation-linked swaps. • The currency markets are exposed to model risk resulting from forward skew modelling and the impact of stochastic interest rate and correlation modelling for multi-asset instruments. Risk may also arise from market data, due to the existence of specific illiquid foreign exchange pairs. • The most important source of model risk for credit derivatives relates to the estimation of the correlation between the probabilities of default of different underlying issuers. For illiquid underlying issuers, the CDS spread may not be well defined. Set forth below are the financial instruments of Grupo Santander at fair value whose measurement was based on internal models (levels 2 and 3) at 31 December 2025 and 2024 : 159 | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR million | | | | | | | Fair values calculated using internal models at | | | | | | 2025 A | | | | | | Level 2 | Level 3 | Valuation techniques | Main assumptions | | ASSETS | 163,796 | 18,487 | | | | Financial assets held for trading | 139,293 | 6,496 | | | | Central banks B | 14,191 | 441 | Present value method | Yield curves, FX market prices | | Credit institutionsB | 25,815 | 152 | Present value method | Yield curves, FX market prices | | CustomersB | 27,986 | 4,592 | Present value method | Yield curves, FX market prices | | Debt and equity instruments | 14,470 | 340 | Present value method | Yield curves, FX market prices | | Derivatives | 56,831 | 971 | | | | Swaps | 39,716 | 551 | Present value method, Gaussian CopulaC | Yield curves, FX market prices, HPI, Basis, Liquidity | | Exchange rate options | 1,332 | 39 | Black-Scholes Model | Yield curves, Volatility surfaces, FX market prices, Liquidity | | Interest rate options | 1,490 | 39 | Black's Model, multifactorial advanced models interest rate | Yield curves, Volatility surfaces, FX market prices, Liquidity | | Interest rate forwards | 177 | — | Present value method | Yield curves, FX market prices | | Index and securities options | 439 | 120 | Black's Model, multifactorial advanced models interest rate | Yield curves, Volatility surfaces, FX & EQ market prices, Dividends, Liquidity | | Other | 13,677 | 222 | Present value method, Advanced stochastic volatility models and other | Yield curves, Volatility surfaces, FX and EQ market prices, Dividends, Correlation, HPI, Credit, Others | | Hedging derivatives | 3,924 | 7 | | | | Swaps | 3,690 | 7 | Present value method | Yield curves, FX market prices, Basis | | Interest rate options | 91 | — | Black's Model | Yield curves, FX market prices, Volatility surfaces | | Other | 143 | — | Present value method, Advanced stochastic volatility models and other | Yield curves, Volatility surfaces, FX market prices, Credit, Liquidity, Others | | Non-trading financial assets mandatorily at fair value through profit or loss | 2,465 | 2,889 | | | | Equity instruments | 899 | 2,543 | Present value method | Market price, Interest rates curves, Dividends and Others | | Debt securities | 54 | 175 | Present value method | Yield curves | | Loans and receivables | 1,512 | 171 | Present value method, swap asset model & CDS | Yield curves and Credit curves | | Financial assets designated at fair value through profit or loss | 5,152 | 34 | | | | Central banks | — | — | Present value method | Yield curves, FX market prices | | Credit institutions | 413 | — | Present value method | Yield curves, FX market prices, HPI | | Customers | 4,725 | 14 | Present value method | Yield curves, FX market prices | | Debt securities | 14 | 20 | Present value method | Yield curves, FX market prices | | Financial assets  at fair value through other comprehensive  income | 12,962 | 9,061 | | | | Equity instruments C | 19 | 272 | Present value method | Yield curves, Market price, Dividends and Others | | Debt securities | 6,819 | 887 | Present value method | Yield curves, FX market prices | | Loans and receivables C | 6,124 | 7,902 | Present value method | Yield curves, FX market prices and Credit curves | 160 | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR million | | | | | | | Fair values calculated using internal models at | | | | | | 2025 A | | | | | | Level 2 | Level 3 | Valuation techniques | Main assumptions | | LIABILITIES B | 198,377 | 1,110 | | | | Financial liabilities held for trading B | 133,490 | 864 | | | | Central banksB | 12,385 | — | Present value method | FX market prices, Yield curves | | Credit institutionsB | 27,058 | — | Present value method | FX market prices, Yield curves | | Customers | 36,120 | — | Present value methodC | FX market prices, Yield curves | | Derivatives | 50,248 | 864 | | | | Swaps | 33,597 | 418 | Present value method, Gaussian Copula | Yield curves, FX market prices, Basis, Liquidity, HPI | | Exchange rate options | 903 | 34 | Black's Model, multifactorial advanced models interest rate | Yield curves, Volatility surfaces, FX & EQ market prices, Dividends,  Liquidity | | Forwards on interest rate and variable income | 1,951 | 95 | Black-Scholes Model | Yield curves, Volatility surfaces, FX market prices | | Index and securities options | 1,094 | 151 | Black-Scholes Model | Yield curves, FX market prices, Liquidity | | Interest rate and equity futures | 121 | — | Present value method | Yield curves, Volatility surfaces, FX & EQ market prices, Dividends, Correlation, Liquidity, HPI | | Other | 12,582 | 166 | Present value method, Advanced stochastic volatility models and others | Yield curves, Volatility surfaces, FX & EQ market prices, Dividends, Correlation, HPI, Credit, Others | | Short positions | 7,679 | — | Present value method | Yield curves ,FX market prices, Equity | | Hedging derivatives | 4,229 | 19 | | | | Swaps D | 4,191 | 19 | Present value method | Yield curves, FX market prices | | Interest rate options | — | — | Black's Model | Yield curves , Volatility surfaces, FX market prices and Liquidity | | Other | 38 | — | Present value method, Advanced stochastic volatility models and other | Yield curves , Volatility surfaces, FX market prices, Credit, Liquidity, Other | | Financial liabilities designated at fair value through profit or loss | 42,148 | — | Present value method | Yield curves, FX market prices | | Liabilities under insurance contracts | 18,510 | 227 | Present Value Method with actuarial techniques | Mortality tables and interest rate curves | A. Level 2 internal models use data based on observable market parameters, while level 3 internal models use significant non-observable inputs in market data. B. Includes mainly temporary acquisitions/disposals of assets with corporate clients and, to a lesser extent, with central banks. C. Includes mainly syndicated loans under the HTC&S business model. D. It mainly includes short-term deposits that are managed based on their fair value. 161 | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | Fair values calculated using internal models at | | | | | 2024 A | | | | | Level 2 | Level 3 | Valuation techniques | | ASSETS | 163,941 | 15,319 | | | Financial assets held for trading | 138,176 | 3,930 | | | Central banks B | 12,966 | — | Present value method | | Credit institutionsB | 26,546 | 769,000,000 | Present Value method | | CustomersB | 24,602 | 1,801 | Present Value method | | Debt and equity instruments | 11,115 | 413 | Present Value method | | Derivatives | 62,947 | 947 | | | Swaps | 47,519 | 556 | Present Value method, Gaussian Copula | | Exchange rate options | 1,583 | 2 | Black-Scholes Model | | Interest rate options | 1,879 | 30 | Black's Model, advanced multifactor interest rate models | | Interest rate futures | 1,445 | — | Present Value method | | Index and securities options | 465 | 241 | Black's Model, advanced multifactor interest rate models | | Other | 10,056 | 118 | Present Value method, Advanced stochastic volatility models and other | | Hedging derivatives | 5,652 | 20 | | | Swaps | 5,390 | 20 | Present Value method | | Interest rate options | 2 | — | Black’s Model | | Other | 260 | — | Present Value method, Advanced stochastic volatility models and other | | Non-trading financial assets mandatorily at fair value through profit or loss | 1,505 | 2,588 | | | Equity instruments | 763 | 1,841 | Present Value method | | Debt securities issued | 205 | 242 | Present Value method | | Loans and receivables | 537 | 505 | Present Value method, swap asset model & CDS | | Financial assets designated at fair value through profit or loss | 5,065 | 106 | | | Credit institutions | 408 | — | Present Value method | | Customers | 4,590 | 20 | Present Value method | | Debt securities | 67 | 86 | Present Value method | | Financial assets  at fair value through other comprehensive  income | 13,543 | 8,675 | | | Equity instruments | 5 | 375 | Present Value method | | Debt securities | 9,644 | 1,047 | Present Value method | | Loans and receivables C | 3,894 | 7,253 | Present Value method | 162 | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | Fair values calculated using internal models at | | | | | 2024A | | | | | Level 2 | Level 3 | Valuation techniques | | LIABILITIES | 179,766 | 1,352 | | | Financial liabilities held for trading | 121,243 | 934 | | | Central banks B | 13,300 | — | Present Value method | | Credit institutionsB | 26,284 | — | Present Value method | | Customers | 18,984 | — | Present Value method | | Derivatives | 56,205 | 934 | | | Swaps | 41,283 | 479 | Present Value method, Gaussian Copula | | Interest rate options | 2,295 | 79 | Black's Model, advanced multifactor interest rate models | | Exchange rate options | 1,057 | — | Black-Scholes Model | | Index and securities options | 1,160 | 294 | Black's Model, advanced multifactor interest rate models | | Interest rate and equity futures | 1,276 | — | Present Value method | | Other | 9,134 | 82 | Present Value method, Advanced stochastic volatility models and other | | Short positions | 6,470 | — | Present Value method | | Hedging derivatives | 4,740 | 12 | | | Swaps | 4,618 | 12 | Present Value method | | Interest rate options | 3 | — | Black’s Model | | Other | 119 | — | Present Value method, Advanced stochastic volatility models and other | | Financial liabilities designated at fair value through profit or loss D | 36,200 | 160 | Present Value method | | Liabilities under insurance contracts | 17,583 | 246 | Present Value method with actuarial techniques | A. Level 2 internal models use data based on observable market parameters, while level 3 internal models use significant non-observable inputs in market data. B. Includes mainly temporary acquisitions/disposals of assets with corporate clients and, to a lesser extent, with central banks. C. Includes mainly syndicated loans under the HTC&S business model. D. Includes, mainly, short-term deposits that are managed based on their fair value. 163 The same information from the previous table, but referred to Banco Santander, S.A., is presented below: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR million | | | | | | | Fair values calculated using internal models at | | | | | | 2025 A | | | | | | Level 2 | Level 3 | Valuation techniques | Main assumptions | | ASSETS | 111,039 | 13,170 | | | | Financial assets held for trading | 100,305 | 6,149 | | | | Central banks B | 217 | 441 | Present value method | Yield curves, FX market prices | | Credit institutionsB | 26,197 | 152 | Present value method | Yield curves, FX market prices | | CustomersB | 26,643 | 4,592 | Present value method | Yield curves, FX market prices | | Debt and equity instruments | 1,934 | 199 | Present value method | Yield curves, FX market prices | | Derivatives | 45,314 | 765 | | | | Swaps | 36,434 | 638 | Present value method, Gaussian CopulaC | Yield curves, FX market prices, HPI, Basis, Liquidity | | Exchange rate options | 865 | 7 | Black-Scholes Model | Yield curves, Volatility surfaces, FX market prices, Liquidity | | Interest rate options | 1,470 | 34 | Black-Scholes Model | Yield curves, Volatility surfaces, FX market prices | | Interest rate futures | 349 | — | Black-Scholes Model | Yield curves, FX market prices, Liquidity | | Index and securities options | 94 | 84 | Present value method | Yield curves, Volatility surfaces, FX & EQ market prices, Dividends, Liquidity | | Other | 6,102 | 2 | Present value method, Advanced stochastic volatility models and other | Yield curves, Volatility surfaces, FX and EQ market prices, Dividends, Correlation, HPI, Credit, Others | | Hedging derivatives | 1,345 | 14 | | | | Swaps | 1,345 | 14 | Present value method | Yield curves, FX market prices, Basis | | Exchange rate options | — | — | Black-Scholes Model | Yield curves, Volatility surfaces, FX market prices, Liquidity | | Interest rate options | — | — | Black´s Model | Yield curves, FX market prices, Volatility surfaces | | Non-trading financial assets mandatorily at fair value through profit or loss | 963 | 951 | | | | Equity instruments | 38 | 911 | Present value method | Market price, Interest rates curves, Dividends and Others | | Debt securities | 2 | 40 | Present value method | Yield curves | | Loans and receivables | 923 | — | Present value method, swap asset model & CDS | Yield curves and Credit curves | | Financial assets designated at fair value through profit or loss | 4,898 | — | | | | Credit institutions | 557 | — | Present value method | Interest rates curves, FX market prices, HPI | | Customers | 4,341 | — | Present value method | Interest rates curves, FX market prices | | Financial assets at fair value through other comprehensive income | 3,528 | 6,056 | | | | Equity instruments | — | 107 | Present value method | Market price, Interest rates curves, Dividends and Others | | Debt securitiesC | 118 | 271 | Present value method | Interest rates curves, FX market prices | | Loans and receivablesC | 3,410 | 5,678 | Present value method | Interest and credit curves, FX market prices | 164 | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR million | | | | | | | Fair values calculated using internal models at | | | | | | 2025A | | | | | | Level 2 | Level 3 | Valuation techniques | Main assumptions | | LIABILITIES | 145,112 | 1,254 | | | | Financial liabilities held for trading | 104,628 | 744 | | | | Central banks B | 5,465 | — | Present value method | Interest rates curves, FX market prices | | Credit institutionsB | 30,602 | — | Present value method | Interest rates curves, FX market prices | | Customers | 28,599 | — | Present value method C | Interest rates curves, FX market prices | | Derivatives | 39,962 | 744 | | | | Swaps | 30,563 | 488 | Present value method, Gaussian Copula | Yield curves, FX market prices, Basis, Liquidity, HPI | | Exchange rate options | 797 | 5 | Black's Model, multifactorial advanced models interest rate | Yield curves, Volatility surfaces, FX & EQ market prices, Dividends, Liquidity | | Index and securities options | 1,656 | 79 | Black-Scholes Model | FX market prices, Yield curves, Volatility surfaces | | Interest rate options | 819 | 165 | Black-Scholes Model | Yield curves, FX market prices, Liquidity | | Futures on interest rate and variable income | 47 | — | Present value method | Yield curves, FX market prices, Equity | | Other | 6,080 | 7 | Present value method, Advanced stochastic volatility models | Yield curves, Volatility surfaces, FX & EQ market prices, Dividends, Correlation, Liquidity, HPI, Credit, Others | | Hedging derivatives | 2,265 | 19 | | | | SwapsD | 2,265 | 19 | Present value method | Yield curves ,FX market prices | | Exchange rate options | — | — | Black-Scholes Model | Yield curves, Volatility surfaces, FX market prices, Liquidity | | Interest rate options | — | — | Black's Model | Yield curves , Volatility surfaces, FX market prices, Liquidity | | Other | — | — | Present value method, Advanced stochastic volatility models and other | Yield curves , Volatility surfaces, FX market prices, Credit, Liquidity, Other | | Financial liabilities designated at fair value through profit or loss | 38,219 | 491 | | | | Central banks | 3,086 | — | Present value method | Yield curves, FX market prices | | Credit institutions | 1,521 | — | Present value method | Yield curves, FX market prices | | Customers | 33,612 | 491 | Present value method | Yield curves, FX market prices | | Liabilities under insurance contracts | — | — | Present Value Method with actuarial techniques | Mortality tables and interest rate curves | A. Level 2 internal models use data based on observable market parameters, while level 3 internal models use significant non- observable inputs in market data. B. Includes mainly short-term loans/deposits and repurchase/reverse repurchase with corporate customers (mainly brokerage and investment companies). C. Includes, mainly, structured loans to corporate clients. D. Includes, mainly, short-term deposits that are managed based on their fair value. 165 | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | Fair values calculated using internal models at | | | | | 2024A | | | | | Level 2 | Level 3 | Valuation techniques | | ASSETS | 106,339 | 9,434 | | | Financial assets held for trading | 97,361 | 3,762 | | | Central banks B | 1,239 | — | Present value method | | Credit institutions B | 22,659 | 768 | Present value method | | CustomersB | 21,768 | 1,800 | Present value method | | Debt and equity instruments | 323 | 259 | Present value method | | Derivatives | 51,372 | 935 | | | Swaps | 38,847 | 688 | Present value method, Gaussian Copula | | Exchange rate options | 8,247 | 9 | Black’s Model, multifactorial advanced models interest rate | | Interest rate options | 1,949 | 37 | Black-Scholes Model | | Interest rate futures | 1,045 | — | Black-Scholes Model | | Index and securities options | 277 | 144 | Present value method | | Other | 1,007 | 57 | Present value method, Advanced stochastic volatility models and other | | Hedging derivatives | 1,889 | 28 | | | Swaps | 1,837 | 28 | Present value method | | Exchange rate options | 2 | — | Black-Scholes Model | | Interest rate options | 50 | — | Black-Scholes Model | | Non-trading financial assets mandatorily at fair value through profit or loss | 1,125 | 981 | | | Equity instruments | 32 | 938 | Present value method | | Debt securities | 161 | 43 | Present value method | | Loans and receivables | 932 | 0 | Present value method | | Financial assets designated at fair value through profit or loss | 4,826 | — | | | Credit institutions | 580 | — | Present value method | | Customers | 4,246 | — | Present value method | | Financial assets at fair value through other comprehensive income D | 1,138 | 4,663 | | | Equity instruments | — | 88 | Present value method | | Debt securities | 12 | 506 | Present value method | | Loans and receivables | 1,126 | 4,069 | Present value method | 166 | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | Fair values calculated using internal models at | | | | | 2024 A | | | | | Level 2 | Level 3 | Valuation techniques | | LIABILITIES | 127,590 | 1,295 | | | Financial liabilities held for trading | 92,064 | 1,048 | | | Central banks B | 9,122 | — | Present value method | | Credit institutions B | 24,884 | — | Present value method | | Customers | 13,503 | — | Present value method | | Derivatives | 44,555 | 1,048 | | | Swaps | 31,589 | 654 | Present value method, Gaussian Copula | | Exchange rate options | 7,584 | — | Black-Scholes Model | | Index and securities options | 2,243 | 85 | Black's Model, advanced multifactor interest rate models | | Interest  rate options | 1,036 | 232 | Black-Scholes Model | | Futures on interest rate and variable income | 697 | — | Present value method | | Other | 1,406 | 77 | Present value method, Advanced stochastic volatility models | | Hedging derivatives | 2,504 | 12 | | | Swaps | 2,449 | 11 | Present value method | | Exchange rate options | — | — | Black-Scholes Model | | Interest rate options | 55 | 1 | Black's Model | | Other | — | — | Present value method, Advanced stochastic volatility models and other | | Financial liabilities designated at fair value through profit or loss D | 33,022 | 235 | | | Central banks | 1,774 | — | Present value method | | Credit institutions | 2,107 | — | Present value method | | Customers | 29,141 | 235 | Present value method | | Liabilities under insurance contracts | — | — | Present Value Method with actuarial techniques | A. Level 2 internal models use data based on observable market parameters, while level 3 internal models use significant non-observable inputs in market data. B. Includes mainly temporary acquisitions/disposals of assets with corporate clients and, to a lesser extent, with central banks. C. Includes mainly syndicated loans under the HTC&S business model. D. Includes, mainly, short-term deposits that are managed based on their fair 167 #### b) Financial Instruments (level 3) Financial Instruments (level 3) Set forth below are the Group and the Bank´s main financial instruments measured using unobservable market data as significant inputs of the internal models (level 3): • HTC&S (Held to collect and sale) syndicated loans classified in the fair value category with changes in other comprehensive income, where the cost of liquidity is not directly observable in the market, as well as the prepayment option in favour of the borrower. • Repos and reverse repos classified as financial assets held for trading, whose valuation uses significant unobservable inputs, mainly associated with credit adjustments, liquidity and certain specific characteristics of the counterparty and the collateral. • Illiquid equity in non-trading portfolios, classified at fair value through profit or loss and at fair value through equity. • Instruments in Santander UK’s portfolio (loans, debt securities and derivatives) linked to the House Price Index (HPI). Even if the valuation techniques used for these instruments may be the same as those used to value similar products (present value in the case of loans and debt securities, and the Black-Scholes model for derivatives), the main factors used in the valuation of these instruments are the HPI spot rate, the growth and volatility thereof, and the mortality rates, which are not always observable in the market and, accordingly, these instruments are considered illiquid. • Callable interest rate derivatives (Bermudan-style options) where the main unobservable input is mean reversion of interest rates. • Trading derivatives on interest rates, taking as an underlying asset titling and with the amortization rate (CPR, Conditional prepayment rate) as unobservable main entry. • Derivatives from trading on inflation in Spain, where volatility is not observable in the market. • Equity volatility derivatives, specifically indices and equities, where volatility is not observable in the long term. • Derivatives on long-term interest rate and FX in some units (mainly South America) where for certain underlyings it is not possible to demonstrate observability to these terms. • Debt instruments referenced to certain illiquid interest rates, for which there is no reasonable market observability.The measurements obtained using the internal models might have been different if other methods or assumptions had been used with respect to interest rate risk, to credit risk, market risk and foreign currency risk spreads, or to their related correlations and volatilities. Nevertheless, the Banco Santander considers that the fair value of the financial assets and liabilities recognised in the balance sheet and the gains and losses arising from these financial instruments are reasonable. The net amount recognised in profit or loss for 2025 arising from valuation models whose significant inputs are unobservable market data (Level 3) amounted to a profit of EUR 75 million for the Bank. In 2024, the net amount recognised in profit or loss was a profit of EUR 471 million. The table below shows the effect, at 31 December   2025 and 2024 on the fair value of the main financial instruments classified as level 3 of a reasonable change in the assumptions used in the valuation. This effect was determined by applying the probable valuation ranges of the main unobservable inputs detailed in the following table: 168 | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 2025 | | | | | | | | Portfolio/Instrument | Valuation technique | Main unobservable inputs | Range | Weighted average | Impacts (EUR million) | | | (Level 3) | Unfavourable scenario | Favourable scenario | | Financial assets held for trading | | | | | | | | Loans and advances to customers | | | | | | | | Repos/Reverse repos | Market proxy | Price / Credit spread | n.a. | n.a. | (10.50) | 10.50 | | Debt securities | | | | | | | | Corporate debt | Discounted Cash Flows | Credit spread | 0% - 10% | 5.10% | (2.24) | 2.29 | | Government debt | Discounted Cash Flows | Discount curve | 0% - 8% | 4.00% | (9.21) | 9.24 | | Others | Discounted Cash Flows | Credit spread | 10% - 90% | 35.50% | (1.32) | 0.62 | | Derivatives | | | | | | | | Cap&Floor | Modelo de Black Scholes | Volatility | (6.50)bps - 6.50bps | 1.00pbs | (0.38) | 0.52 | | CCS | Discounted Cash Flows | Credit spread | 146.3% - 148.3% | 147.30% | (0.01) | 0.01 | | EQ Options | EQ option pricing model | Volatility | 0% - 70% | 40.50% | (0.17) | 0.24 | | EQ Options | Local volatility | Volatility | 10% - 90% | 50.00% | (18.86) | 18.86 | | Fx Options | Fx option pricing model | Volatility | 0% - 40% | 19.80% | (0.50) | 0.49 | | FX Forward | Forward estimation | Swap Rate | 0% - 15% | 8.10% | (0.01) | 0.02 | | Inflation Derivatives | Asset Swap model | Inflation Swap Rate | 2% - 8% | 4.90% | (0.18) | 0.17 | | IR Options | IR option pricing model | Volatility | 0% - 30% | 14.80% | (0.19) | 0.19 | | IR Options | INF option pricing model | Volatility | 0% - 30% | 14.90% | (0.63) | 0.63 | | IRS | Others | Others | 5% - n.a. | n.a. | (11.24) | 8.23 | | IRS | Discounted Cash Flows | Credit spread | 19.6% - 127.5% | 50.50% | (2.10) | 0.84 | | IRS | Discounted Cash Flows | Inflation Swap Rate | 1.0% - 99.0% | 99.00% | — | 1.41 | | Others | Forward estimation | Price | 60bps - 300bps | 179.80 | (3.48) | 3.47 | | Property derivatives | Option pricing model | Growth rate | (5)% - 5% | 0.00% | (2.64) | 2.64 | | Securitisation Swap | Discounted Cash Flows | Constant prepayment rates | 10% - 90% | 50.00% | — | — | | Financial assets designated at fair value through profit or loss | | | | | | | | Loans and advances to customers | | | | | | | | Loans | Discounted Cash Flows | Credit spreads | 0.1% - 3% | 1.60% | (0.12) | 0.12 | | Mortgage portfolio | Black Scholes model | Growth rate | (5)% - 5% | 0.00% | (0.23) | 0.23 | | Debt securities | | | | | | | | Other debt securities | Others | Inflation Swap Rate | 0% - 8% | 4.10% | — | — | | Non-trading financial assets mandatorily at fair value through profit or loss | | | | | | | 169 | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 2025 | | | | | | | | Portfolio/Instrument | Valuation technique | Main unobservable inputs | Range | Weighted average | Impacts (EUR million) | | | (Level 3) | Unfavourable scenario | Favourable scenario | | Debt securities | | | | | | | | Property securities | Probability weighting | Growth rate | (5)% - 5% | 0.00% | (0.11) | 0.11 | | Equity instruments | | | | | | | | Equities | Price Based | Price | 90% - 110% | 100.00% | (254.29) | 254.29 | | Financial assets at fair value through other comprehensive income | | | | | | | | Loans and advances to customers | | | | | | | | Loans | Discounted Cash Flows | Credit spread | n.a. | n.a. | (2.33) | 2.33 | | Loans | Discounted Cash Flows | Interest rate curve | 6.1% - 7.2% | 6.60% | — | — | | Loans | Discounted Cash Flows | Margin of a reference portfolio | 3% - 7% | 5% | (0.25) | 0.25 | | Loans | Present value method | Credit spread | 121.9bps - 174.7 bps | 121.9bps | (1.60) | — | | Loans | Market price | Market price | (0.3)% - 0.1% | (0.30)% | (2.70) | 0.54 | | Debt securities | | | | | | | | Mortgage Letters | Discounted Cash Flows | Mortgage Letters | 3.4% - 5.5% | 4.50% | — | — | | Equity instruments | | | | | | | | Equities | Price Based | Price | 90% - 110% | 100.00% | (27.16) | 27.16 | | Financial liabilities held for trading | | | | | | | | Derivatives | | | | | | | | Cap&Floor | Volatility option model | Volatility | 10% - 90% | 43.80% | (0.09) | 0.07 | | FX Options | Volatility option model | Volatility | 10% - 90% | 42.30% | (0.33) | 0.22 | | IRS | Discounted Cash Flows | Inflation Swap Rate | 1% - 99% | 50.40% | (1.38) | 1.40 | | IRS | Discounted Cash Flows | Credit Spread | 8.4bps - 19.2bps | 10.70bps | (2.42) | 0.66 | 1. For each instrument, the valuation technique, the unobservable inputs are shown in the 'Main observable inputs' column under probable scenarios, variation range, average value and impact resulting from valuing the position in the established maximum and minimum range. 2. The breakdown of impacts is shown by type of instrument and unobservable inputs. 3. The estimation of the range of variation of the unobservable inputs has been carried out taking into account plausible movements of said parameters depending on the type of instrument. 4. Zero impacts from fully hedged or back-to-back transactions have not been included in this exercise. 170 | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 2024 | | | | | | | | Portfolio/ Instrument | Valuation technique | Main unobservable inputs | Range | Weighted average | Impacts (EUR million) | | | (Level 3) | Unfavourable scenario | Favourable scenario | | | | | | | | | | Financial assets held for trading | | | | | | | | Loans and advances to customers | | | | | | | | Repos/Reverse repos | Other | Long-term repo spread | n.a. | n.a. | (0.05) | — | | Debt securities | | | | | | | | Corporate debt | Discounted Cash Flows | Credit spread | 0% - 10% | 5.10% | (2.24) | 2.29 | | Government debt | Discounted Cash Flows | Discount curve | 0% - 8% | 4.00% | (9.21) | 9.24 | | Others | Discounted Cash Flows | Credit spread | 10% - 90% | 35.50% | (1.32) | 0.62 | | Derivatives | | | | | | | | Cap&Floor | Forward estimation | Interest rate | (2)bps - 2bps | 0.00bps | — | — | | CCS | Discounted Cash Flows | Credit spread | 158% - 165% | 161.50% | (0.01) | 0.01 | | CDS | Price | Credit spread | 100% - 250% | 178.83% | (0.09) | 0.10 | | EQ Options | EQ option pricing model | Volatility | 0% - 70% | 41.25% | (0.48) | 0.69 | | EQ Options | Local volatility | Volatility | 10% - 90% | 50.00% | (21.54) | 21.54 | | FX Forward | Forward estimation | Swap Rate | 0% - 15% | 8.08% | (0.06) | 0.07 | | FX Options | FX option pricing model | Volatility | 0% - 40% | 20.10% | (0.65) | 0.66 | | Inflation Derivatives | Asset Swap model | Inflation Swap Rate | 2% - 8% | 4.78% | (0.21) | 0.18 | | IR Options | IR option pricing model | Volatility | 0% - 30% | 17.34% | (0.16) | 0.22 | | IRS | Others | Others | 5% - n.a. | n.a. | (4.09) | — | | IRS | Discounted Cash Flows | Credit spread | 47.8% - 273.4% | 155.36% | (1.91) | 1.74 | | IRS | Discounted Cash Flows | Swap rate | 1% - 99% | 49.58% | (2.45) | 2.41 | | Others | Forward estimation | Price | 60bps - 300bps | 181.50bps | (3.00) | 3.08 | | Property derivatives | Option pricing model | Growth rate | (5)% - 5% | 0.00% | (3.39) | 3.39 | | Securitisation Swap | Discounted Cash Flows | Constant prepayment rates | 10% - 90% | 50.00% | (0.63) | 0.63 | | Financial assets designated at fair value through profit or loss | | | | | | | | Loans and advances to customers | | | | | | | | Loans | Discounted Cash Flows | Credit spreads | 0.1% - 2.0% | 1.05% | (0.15) | 0.15 | | Mortgage portfolio | Black Scholes model | Growth rate | (5)% - 5% | 0.00% | (0.24) | 0.24 | | Debt securities | | | | | | | | Other debt securities | Others | Inflation Swap Rate | 0% - 8% | 3.96% | (3.63) | 3.55 | | Non-trading financial assets mandatorily at fair value through profit or loss | | | | | | | | Debt securities | | | | | | | 171 | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | 2024 | | | | | | | | Portfolio/ Instrument | Valuation technique | Main unobservable inputs | Range | Weighted average | Impacts (EUR million) | | | (Level 3) | Unfavourable scenario | Favourable scenario | | Property securities | Probability weighting | Growth rate | (5)% - 5% | 0.00% | (0.24) | 0.24 | | Equity instruments | | | | | | | | Equities | Price Based | Price | 90% - 110% | 100.00% | (183.98) | 183.98 | | Financial assets at fair value through other comprehensive income | | | | | | | | Loans and advances to customers | | | | | | | | Loans | Discounted Cash Flows | Credit spread | n.a. | n.a. | (18.61) | — | | Loans | Discounted Cash Flows | Interest rate curve | 3.4% - 6.5% | 4.95% | (0.17) | 0.17 | | Loans | Discounted Cash Flows | Margin of a reference portfolio | (1)bps - 1bps | 0bps | (30.36) | 30.36 | | Loans | Forward estimation | Credit spread | 150bps - 232bps | 150bps | (1.96) | — | | Loans | Market price | Market price | (5)% - 20% | 0.01% | (4.91) | 1.23 | | Debt securities | | | | | | | | Corporate debt | Discounted Cash Flows | Margin of a reference portfolio | (1)bps - 1bps | -0.09bps | (0.09) | 0.09 | | Mortgage Letters | Discounted Cash Flows | Mortgage Letters | 1.6% - 5.2% | 3.40% | — | — | | Equity instruments | | | | | | | | Equities | Price Based | Price | 90% - 110% | 100.00% | (37.56) | 37.56 | | Financial liabilities held for trading | | | | | | | | Derivatives | | | | | | | | Cap&Floor | Volatility option model | Volatility | 10% - 90% | 42.20% | (0.11) | 0.07 | | FX Options | Volatility option model | Volatility | 10% - 90% | 45.30% | (0.03) | 0.02 | | IRS | Discounted Cash Flows | Inflation Swap Rate | 1% - 99% | 47.12% | (4.77) | 4.24 | | IRS | Discounted Cash Flows | Credit spread | 34bps - 68bps | 44bps | (4.09) | 1.65 | 1. For each instrument, the valuation technique, the unobservable inputs are shown in the 'Main observable inputs' column under probable scenarios, variation range, average value and impact resulting from valuing the position in the established maximum and minimum range. 2. The breakdown of impacts is shown by type of instrument and unobservable inputs. 3. The estimation of the range of variation of the unobservable inputs has been carried out taking into account plausible movements of said parameters depending on the type of instrument. 4. Zero impacts from fully hedged or back-to-back transactions have not been included in this exercise. 172 Lastly, the changes in the financial instruments classified as Level 3, at Grupo Santander, in 2025 and 2024: | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | 01/01/2025 | | Changes | | | | | | | 31/12/2025 | | EUR million | Fair value calculated using internal models (Level 3) | | Purchases/ Issuances | Sales/ Settlements | Changes in fair value recognised in profit or loss | Changes in fair value recognised in equity | Level reclassifications | Other | | Fair value calculated using internal models (level 3) | | Financial assets held for trading | 3,930 | | 5,353 | (2,748) | 57 | — | (9) | (87) | | 6,496 | | Customers | 1,801 | | 4,450 | (1,711) | 52 | — | 2 | (2) | | 4,592 | | Debt securities | 413 | | 110 | (112) | (13) | — | (21) | (37) | | 340 | | Equity instruments | — | | — | — | — | — | — | — | | — | | Trading derivatives | 947 | | 228 | (181) | 14 | — | 10 | (47) | | 971 | | Swaps | 556 | | 1 | (81) | (30) | — | (21) | 126 | | 551 | | Exchange rate options | 2 | | — | — | 5 | — | 19 | 13 | | 39 | | Interest rate options | 30 | | 6 | — | 1 | — | 20 | (18) | | 39 | | Index and securities options | 241 | | 1 | (41) | 37 | — | (5) | (113) | | 120 | | Other | 118 | | 220 | (45) | 1 | — | 3 | (75) | | 222 | | Financial assets at fair value through profit or loss | 106 | | 33 | (100) | (5) | — | — | — | | 34 | | Loans and advances to customers | 20 | | — | — | (5) | — | — | (1) | | 14 | | Debt securities | 86 | | 33 | (100) | — | — | — | 1 | | 20 | | Non-trading financial assets mandatorily at fair value through profit or loss | 2,588 | | 324 | (191) | 360 | — | (266) | 74 | | 2,889 | | Customers | 505 | | — | — | (36) | — | (266) | (32) | | 171 | | Debt instruments | 242 | | 24 | (40) | (27) | — | — | (24) | | 175 | | Equity instruments | 1,841 | | 300 | (151) | 423 | — | — | 130 | | 2,543 | | Financial assets at fair value through other comprehensive income | 8,675 | | 7,635 | (6,159) | — | (73) | 57 | (1,074) | | 9,061 | | Loans and advances | 7,253 | | 7,259 | (5,621) | — | (87) | 97 | (999) | | 7,902 | | Debt securities | 1,047 | | 360 | (530) | — | 16 | (40) | 34 | | 887 | | Equity instruments | 375 | | 16 | (8) | — | (2) | — | (109) | | 272 | | TOTAL ASSETS | 15,319 | | 13,345 | (9,198) | 405 | (73) | (222) | (1,089) | | 18,487 | | Financial liabilities held for trading | 934 | | 160 | (206) | (59) | — | 16 | 19 | | 864 | | Trading derivatives | 934 | | 160 | (206) | (59) | — | 16 | 19 | | 864 | | Swaps | 479 | | 1 | (88) | (90) | — | 19 | 97 | | 418 | | Exchange rate options | — | | — | (1) | 2 | — | 18 | 15 | | 34 | | Interest rate options | 79 | | — | (25) | 17 | — | (3) | 27 | | 95 | | Index and securities options | 294 | | 1 | (83) | 6 | — | (4) | (63) | | 151 | | Others | 82 | | 158 | (9) | 6 | — | 5 | (76) | | 166 | | Hedging derivatives (Liabilities) | 12 | | — | (1) | 14 | — | (6) | — | | 19 | | Swaps | 12 | | — | — | 14 | — | (6) | (1) | | 19 | | Financial liabilities designated at fair value through profit or loss | 160 | | — | (49) | — | — | (111) | — | | — | | Liabilities under insurance contracts | 246 | | — | — | (19) | — | — | — | | 227 | | TOTAL LIABILITIES | 1,352 | | 160 | (256) | (64) | — | (101) | 19 | | 1,110 | 173 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | 01/01/24 | | Changes | | | | | | | 31/12/24 | | EUR million | Fair value calculated using internal models (level 3) | | Purchases / Issuances | Sales/ Settlements | Changes in fair value recognized in profit or loss | Changes in fair value recognized in equity | Level reclassifications | Other | | Fair value calculated using internal models (level 3) | | Financial assets held for trading | 2,086 | | 3,205 | (813) | 302 | — | (715) | (135) | | 3,930 | | Equity instruments | 1 | | — | — | (1) | — | — | — | | — | | Trading derivatives | 1,147 | | 272 | (405) | 350 | — | (338) | (79) | | 947 | | Swaps | 577 | | 184 | (278) | 186 | — | (152) | 39 | | 556 | | Exchange rate options | 9 | | — | (1) | — | — | (6) | — | | 2 | | Interest rate options | 153 | | 13 | (42) | (20) | — | (74) | — | | 30 | | Index and securities options | 235 | | 42 | (44) | 128 | — | (106) | (14) | | 241 | | Other | 173 | | 33 | (40) | 56 | — | — | (104) | | 118 | | Swaps | — | | — | — | 15 | — | (1) | 6 | | 20 | | Loans and advances to customers | 31 | | — | — | (5) | — | (23) | 17 | | 20 | | Non-trading financial assets mandatorily at fair value through profit or loss | 2,095 | | 719 | (349) | 73 | — | 132 | (82) | | 2,588 | | Customers | 287 | | 390 | (128) | (31) | — | 41 | (54) | | 505 | | Debt instruments | 313 | | 4 | (96) | 10 | — | 11 | — | | 242 | | Equity instruments | 1,495 | | 325 | (125) | 94 | — | 80 | (28) | | 1,841 | | Financial assets at fair value through other comprehensive income | 5,989 | | 6,707 | (3,781) | — | (136) | 6 | (110) | | 8,675 | | Loans and advances | 4,938 | | 5,962 | (3,685) | — | 43 | — | (5) | | 7,253 | | Debt securities | 559 | | 743 | (81) | — | (74) | 6 | (106) | | 1,047 | | Equity instruments | 492 | | 2 | (15) | — | (105) | — | 1 | | 375 | | TOTAL ASSETS | 10,351 | | 11,048 | (5,243) | 403 | (136) | (779) | (325) | | 15,319 | | Financial liabilities held for trading | 869 | | 472 | (200) | (95) | — | (266) | 154 | | 934 | | Trading derivatives | 869 | | 472 | (200) | (95) | — | (266) | 154 | | 934 | | Swaps | 388 | | 371 | (20) | (205) | — | (105) | 50 | | 479 | | Exchange rate options | 8 | | — | (5) | — | — | (3) | — | | — | | Interest rate options | 139 | | — | (54) | 3 | — | (10) | 1 | | 79 | | Index and securities options | 187 | | 54 | (14) | 113 | — | (40) | (6) | | 294 | | Securities and interest rate futures | — | | — | — | — | — | — | — | | — | | Others | 147 | | 47 | (107) | (6) | — | (108) | 109 | | 82 | | Swaps | 6 | | — | — | — | — | — | 6 | | 12 | | Financial liabilities designated at fair value through profit or loss | 29 | | 41 | (5) | 1 | — | 94 | — | | 160 | | Liabilities under insurance contracts | 323 | | — | — | (26) | — | — | (51) | | 246 | | TOTAL LIABILITIES | 1,227 | | 513 | (205) | (120) | — | (172) | 109 | | 1,352 | 174 The same information on the movement of financial instruments classified in Level 3, but referred to Banco Santander, S.A., in 2025  and 2024, is presented below: | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | 01/01/2025 | Changes | | | | | | 31/12/2025 | | EUR million | Fair value calculated using internal models (Level 3) | Purchases/ Issuances | Sales/ Settlements | Changes in fair value recognised in profit or loss | Changes in fair value recognised in equity | Level reclassifications | Other | Fair value calculated using internal models (level 3) | | Financial assets held for trading | 3,762 | 5,216 | (2,662) | 44 | — | (196) | (15) | 6,149 | | Central Banks | — | 437 | — | 4 | — | — | — | 441 | | Credit entities | 768 | 128 | (744) | — | — | — | — | 152 | | Loans and advances to customers | 1,800 | 4,449 | (1,711) | 52 | — | 2 | — | 4,592 | | Debt instruments and equity instrument | 259 | 197 | (39) | — | — | (218) | — | 199 | | Trading derivatives | 935 | 5 | (168) | (12) | — | 20 | (15) | 765 | | Swaps | 688 | 4 | (98) | (15) | — | 19 | 40 | 638 | | Exchange rate options | 9 | — | — | 3 | — | (5) | — | 7 | | Interest rate options | 37 | — | (15) | 1 | — | 15 | (4) | 34 | | Index and securities options | 144 | 1 | (51) | (2) | — | (7) | (1) | 84 | | Other | 57 | — | (4) | 1 | — | (2) | (50) | 2 | | Hedging derivatives (Assets) | 28 | — | — | (10) | — | (4) | — | 14 | | Swaps | 28 | — | — | (10) | — | (4) | — | 14 | | Financial assets at fair value through profit or loss | — | — | — | — | — | — | — | — | | Credit entities | — | — | — | — | — | — | — | — | | Loans and advances to customers | — | — | — | — | — | — | — | — | | Debt securities | — | — | — | — | — | — | — | — | | Non-trading financial assets mandatorily at fair value through profit or loss | 981 | 167 | (46) | 38 | — | 8 | (197) | 951 | | Customers | — | — | — | — | — | — | — | — | | Debt securities | 43 | 1 | (3) | (1) | — | — | — | 40 | | Equity instruments | 938 | 166 | (43) | 39 | — | 8 | (197) | 911 | | Financial assets at fair value through other comprehensive income | 4,663 | 5,277 | (3,922) | — | (44) | 97 | (15) | 6,056 | | Loans and advances | 4,069 | 4,996 | (3,415) | — | (54) | 97 | (15) | 5,678 | | Debt securities | 506 | 269 | (506) | — | 2 | — | — | 271 | | Equity instruments | 88 | 12 | (1) | — | 8 | — | — | 107 | | TOTAL ASSETS | 9,434 | 10,660 | (6,630) | 72 | (44) | (95) | (227) | 13,170 | | Financial liabilities held for trading | 1,048 | 2 | (211) | (18) | — | (52) | (25) | 744 | | Trading derivatives | 1,048 | 2 | (211) | (18) | — | (52) | (25) | 744 | | Swaps | 654 | 1 | (96) | (61) | — | (13) | 3 | 488 | | Exchange rate options | — | — | (1) | 5 | — | 1 | — | 5 | | Interest rate options | 85 | — | (25) | 16 | — | (16) | 19 | 79 | | Index and securities options | 232 | 1 | (86) | 17 | — | (5) | 6 | 165 | | Securities and interest rate futures | — | — | — | — | — | (19) | 19 | — | | Others | 77 | — | (3) | 5 | — | — | (72) | 7 | | Hedging derivatives (Liabilities) | 12 | — | (1) | 14 | — | (6) | — | 19 | | Swaps | 11 | — | — | 14 | — | (6) | — | 19 | | Interest rate options | 1 | — | (1) | — | — | — | — | — | | Financial liabilities designated at fair value through profit or loss | 235 | 419 | (57) | 6 | — | (112) | — | 491 | | TOTAL LIABILITIES | 1,295 | 421 | (269) | 2 | — | (170) | (25) | 1,254 | 175 | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | 01/01/2024 | Changes | | | | | | 31/12/2024 | | EUR million | Fair value calculated using internal models (level 3) | Purchases/ Issuances | Sales/ Settlements | Changes in fair value recognized in profit or loss | Changes in fair value recognized in equity | Level reclassifications | Other | Fair value calculated using internal models (level 3) | | Financial assets held for trading | 1,424 | 3,067 | (763) | 313 | — | (364) | 85 | 3,762 | | Credit entities | — | 770 | — | — | — | (2) | — | 768 | | Loans and advances to customers | 24 | 1,806 | (24) | — | — | (6) | — | 1,800 | | Debt instruments and equity instrument | 366 | 261 | (363) | (2) | — | (3) | — | 259 | | Trading derivatives | 1,034 | 230 | (376) | 315 | — | (353) | 85 | 935 | | Swaps | 861 | 184 | (298) | 161 | — | (276) | 56 | 688 | | Exchange rate options | 10 | — | (2) | 3 | — | (2) | — | 9 | | Interest rate options | 151 | 13 | (42) | (17) | — | (70) | 2 | 37 | | Index and securities options | 12 | — | (1) | 117 | — | (5) | 21 | 144 | | Other | — | 33 | (33) | 51 | — | — | 6 | 57 | | Hedging derivatives (Assets) | 9 | — | — | 14 | — | (1) | 6 | 28 | | Swaps | 9 | — | — | 14 | — | (1) | 6 | 28 | | Financial assets at fair value through profit or loss | 203 | — | — | — | — | (203) | — | — | | Credit entities | — | — | — | — | — | — | — | — | | Customers | 203 | — | — | — | — | (203) | — | — | | Debt securities | — | — | — | — | — | — | — | — | | Non-trading financial assets mandatorily at fair value through profit or loss | 685 | 294 | (95) | 22 | — | 75 | — | 981 | | Customers | 18 | — | (18) | — | — | — | — | — | | Debt securities | 93 | 17 | (55) | (12) | — | — | — | 43 | | Equity instruments | 574 | 277 | (22) | 34 | — | 75 | — | 938 | | Financial assets at fair value through other comprehensive income | 4,332 | 3,754 | (3,252) | — | (171) | — | — | 4,663 | | Loans and advances | 4,046 | 3,255 | (3,203) | — | (29) | — | — | 4,069 | | Debt securities | 34 | 501 | (34) | — | 5 | — | — | 506 | | Equity instruments | 252 | — | (15) | — | (149) | — | — | 88 | | TOTAL ASSETS | 6,653 | 4,539 | (4,086) | 349 | (171) | (485.00) | 91 | 9,434 | | Financial liabilities held for trading | 926 | 460 | (178) | (133) | — | (111) | 85 | 1,048 | | Trading derivatives | 926 | 460 | (178) | (133) | — | (111) | 85 | 1,048 | | Swaps | 593 | 371 | (36) | (237) | — | (92) | 56 | 654 | | Exchange rate options | 14 | — | (7) | — | — | (7) | — | — | | Interest rate options | 136 | 2 | (54) | 2 | — | (3) | 2 | 85 | | Index and securities options | 39 | 42 | (6) | 146 | — | (9) | 20 | 232 | | Securities and interest rate futures | — | — | — | — | — | — | — | — | | Others | 144 | 45 | (75) | (44) | — | — | 7 | 77 | | Hedging derivatives (Liabilities) | 6 | — | — | 1 | — | — | 5 | 12 | | Swaps | 6 | — | — | — | — | — | 5 | 11 | | Interest rate options | — | — | — | 1 | — | — | — | 1 | | Financial liabilities designated at fair value through profit or loss | 300 | 103 | (5) | 2 | — | (165) | — | 235 | | TOTAL LIABILITIES | 1,232 | 563 | (183) | (131) | — | (276) | 90 | 1,295 | 176 49. Other disclosures #### a) Residual maturity periods The detail, by maturity, of the balances of certain items in the balance sheets as of 31 December 2025 and 2024 is as follows: | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | EUR million | | | | | | | | | | 31 December 2025 | | | | | | | | | On demand | Within 1 month | 1 to 3 months | 3 to 12 months | 1 to 5 years | More than 5 years | Total | | Assets | | | | | | | | | Cash, cash balances at central banks and other demand deposits | 74,786 | — | — | — | — | — | 74,786 | | Financial assets at fair value with changes in other comprehensive income | | | | | | | | | Representative values of debt | — | 1,384 | 1,066 | 161 | 1,810 | 928 | 5,349 | | Financial assets at amortized cost | | | | | | | | | Representative values of debt | — | 2,198 | 1,254 | 3,422 | 21,609 | 55,102 | 83,585 | | Loans and advances | | | | | | | | | Central banks | — | 155 | — | — | — | 68 | 223 | | Credit institutions | 255 | 7,053 | 5,736 | 4,664 | 8,348 | 14,826 | 40,882 | | Customer | 3,419 | 44,363 | 31,180 | 43,981 | 94,380 | 92,416 | 309,739 | | | 78,460 | 55,153 | 39,236 | 52,228 | 126,147 | 163,340 | 514,564 | | Liabilities: | | | | | | | | | Financial liabilities at amortized cost | | | | | | | | | Deposits | | | | | | | | | Central banks | 857 | 1,789 | 3,518 | 1,350 | — | 8 | 7,522 | | Credit institutions | 4,306 | 2,996 | 3,409 | 6,165 | 10,627 | 7,175 | 34,678 | | Customer deposits | 269,765 | 39,023 | 23,184 | 27,546 | 6,921 | 10,103 | 376,542 | | Marketable debt securities | — | 8,271 | 10,437 | 18,351 | 55,340 | 45,598 | 137,997 | | Other financial liabilities | 8,426 | 14 | 37 | 150 | 899 | 529 | 10,055 | | | 283,354 | 52,093 | 40,585 | 53,562 | 73,787 | 63,413 | 566,794 | | Difference (assets less liabilities) | (204,894) | 3,060 | (1,349) | (1,334) | 52,360 | 99,927 | (52,230) | 177 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | EUR million | | | | | | | | | | 31 December 2024 | | | | | | | | | On demand | Within 1 month | 1 to 3 months | 3 to 12 months | 1 to 5 years | More than 5 years | Total | | Assets: | | | | | | | | | Cash, cash balances at Central Banks and other deposits on demand | 97,457 | — | — | — | — | — | 97,457 | | Financial assets at fair value through other comprehensive income | | | | | | | | | Representative values of debt | — | 409 | 1,626 | 214 | 1,451 | 5,173 | 8,873 | | Financial assets at amortized cost | | | | | | | | | Loans and advances | — | 201 | 238 | 6,464 | 21,641 | 37,373 | 65,917 | | Loans and advances | | | | | | | | | Central banks | — | 177 | — | 41 | — | — | 218 | | Credits institutions | 1,321 | 1,545 | 4,794 | 3,835 | 8,110 | 15,106 | 34,711 | | Customers | 1,358 | 35,364 | 34,029 | 46,355 | 86,837 | 87,654 | 291,597 | | | 100,136 | 37,696 | 40,687 | 56,909 | 118,039 | 145,306 | 498,773 | | Liabilities: | | | | | | | | | Financial liabilities at amortized cost | | | | | | | | | Deposits | | | | | | | | | Central banks | — | 1,228 | 2,457 | 1,425 | — | 7 | 5,117 | | Credit institutions | 2,578 | 8,154 | 3,464 | 6,836 | 10,242 | 7,417 | 38,691 | | Customer deposits | 256,779 | 36,267 | 19,031 | 22,664 | 6,048 | 8,123 | 348,912 | | Debt securities issued | — | 6,538 | 10,572 | 19,918 | 58,667 | 50,418 | 146,113 | | Other financial liabilities | 7,290 | 750 | 19 | 606 | 3,720 | 862 | 13,247 | | | 266,647 | 52,937 | 35,543 | 51,449 | 78,677 | 66,827 | 552,080 | | Difference (assets less liabilities) | (166,511) | (15,241) | 5,144 | 5,460 | 39,362 | 78,479 | (53,307) | 178 #### b)  Equivalent euro value of assets and liabilities The detail of the main foreign currency balances in the balance sheets as of 31 December 2025 and 2024 , based on the nature of the related items, is as follows: | | | | | --- | --- | --- | | | | | | Countervalue in EUR million | | | | | 2025 | 2024 | | Assets | 276,679 | 251,663 | | Cash, cash balances at central banks and other deposits on demand | 25,374 | 32,283 | | Financial assets held for trading | 62,022 | 51,655 | | Non-trading financial assets mandatorily at fair value through profit or loss | 103 | 276 | | Financial assets designated at fair value through profit or loss | 276 | 212 | | Financial assets at fair value through other comprehensive income | 9,027 | 6,968 | | Financial assets at amortized cost | 132,884 | 114,278 | | Hedging derivatives | 635 | 508 | | Changes in the fair value of hedged items in portfolio hedges of interest rate risk | — | — | | Investments | 41,513 | 44,507 | | Tangible assets | 6 | 10 | | Intangible assets | 27 | 28 | | Tax assets | 231 | 180 | | Other assets | 359 | 758 | | Non-current assets held-for-sale | 4,222 | — | | Liabilities | 220,762 | 205,004 | | Financial liabilities held for trading | 40,013 | 34,949 | | Financial liabilities designated at fair value through profit or loss | 11,587 | 10,995 | | Financial liabilities at amortized cost | 166,886 | 156,495 | | Hedging derivatives | 828 | 1,349 | | Changes in the fair value of hedged items in portfolio hedges of interest risk rate | — | — | | Provisions | 133 | 169 | | Tax liabilities | 163 | 95 | | Refundable equity on demand | — | — | | Other liabilities | 1,152 | 952 | | Liabilities associated with non-current assets held-for-sale | — | — | #### c) Fair value of financial assets and liabilities not #### measured at fair value Financial assets are measured at fair value in the accompanying balance sheets, except for loans and receivables under a business model whose objective is to collect the flows of principal and interest , equity instruments whose market value cannot be estimated reliably and derivatives that have these instruments as their underlying and are settled by delivery thereof. Similarly, financial liabilities except for financial liabilities held for trading, those measured at fair value and derivatives having equity instruments whose market value cannot be estimated reliably as their underlying- are measured at amortized cost in the accompanying balance sheets. The following is a comparison between the value of Grupo Santander's financial instruments valued using other criteria rather than fair value and their corresponding fair value at year-end: Financial assets and liabilities measured at other than fair value The fair value of financial instruments measured at amortized cost as of 31 December 2025 was as follows: a. The fair value of debt securities is 0.71% higher than their carrying amount. b. The fair value of loans and advances is 0.52% lower than their carrying amount. c. The fair value of deposits is 0.06% lower than their carrying amount. d. The fair value of the issued debt securities is 0.17%  higher than their carrying amount. 179 Set forth below are the main valuation methods and inputs used in the estimates made at 31 December 2025 to determine the fair values of the financial assets and liabilities recognized at cost detailed above: • Loans and receivables: The fair value has been estimated using the present cost method, the estimation has considered factors such as the expected maturity of the portfolio, market interest rates, spreads of new concession of operations, or market spreads – If these were available. • Held to maturity portfolio: The fair value has been determined based on market prices for those instruments. • Financial liabilities at amortized cost: a. The fair value of deposits at Central Banks has been assimilated to their carrying amount because they are mainly short-term balances. b. Credit Institutions: Fair value has been obtained using the present value technique by applying interest rates and market spreads. c. Customer deposits: Fair value has been estimated using the present value technique. The estimation has considered factors such as the expected maturity of the operations and the current financing cost of Grupo Santander in similar operations. On demand accounts are not valued. d. Marketable debt securities: Fair value has been determined based on market prices for these instruments, when available, or using the present value technique, by applying interest rates and market spreads. Additionally, the fair value of Cash, Cash Balances at central banks and other deposits on demand has been assimilated to its carrying amount, mainly because of short-term balances. #### d) Offsetting of financial instruments On the table below is the detail of financial assets and liabilities that were offset on the balance sheet as of 31 December 2025 and 2024 : | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | | | | Assets | Gross amount of financial assets | Gross amount of financial assets offset on the balance sheet | Net amount of financial assets presented on the balance sheet | | Derivatives | 103,644 | (55,702) | 47,942 | | Repos | 147,735 | (52,354) | 95,381 | | Total | 251,379 | (108,056) | 143,323 | | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2024 | | | | Assets | Gross amount of financial assets | Gross amount of financial assets offset on the balance sheet | Net amount of financial assets presented on the balance sheet | | Derivatives | 133,335 | (78,956) | 54,379 | | Repos | 112,443 | (32,440) | 80,003 | | Total | 245,778 | (111,396) | 134,382 | | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2025 | | | | Liabilities | Gross amount of financial liabilities | Gross amount of financial liabilities offset on the balance sheet | Net amount of financial liabilities presented on the balance sheet | | Derivatives | 99,510 | (55,702) | 43,808 | | Repos | 156,990 | (52,354) | 104,636 | | Total | 256,500 | (108,056) | 148,444 | | | | | | | --- | --- | --- | --- | | | | | | | EUR million | | | | | | 2024 | | | | Liabilities | Gross amount of financial liabilities | Gross amount of financial liabilities offset on the balance sheet | Net amount of financial liabilities presented on the balance sheet | | Derivatives | 127,593 | (78,956) | 48,637 | | Repos | 120,653 | (32,440) | 88,213 | | Total | 248,246 | (111,396) | 136,850 | At December 31, 2025 the balance sheet amounts EUR 142,143 million on derivatives and temporary acquisition of assets and EUR 144,713 million on derivatives and repos as liabilities that are subject to netting and collateral arrangements (EUR 133,139 million and EUR 136,037 million in 2024, respectively) . 180 50. #### Risk management #### a) Risk principles and culture The principles on which Grupo and Banco Santander's risk management and control are based are detailed below. They take into account regulatory requirements, best market practices and are mandatory: 1. All employees are responsible for risk management. They must understand the risks arising from their activities and take ownership for managing them. 2. Senior management involvement. Through conduct, actions and communications, senior management promotes consistent risk management, fosters our risk culture, and oversees that the risk profile remains within the appetite set. 3. Independence: Risk management and control functions operate independently according to our three-lines-of-defence model, with clearly defined roles and responsibilities. 4. Holistic, forward-looking approach: We take a comprehensive approach to risk management and control that extends to all businesses and risk types that could have a material impact. This approach is forward-looking and considers trends across several time horizons and scenarios. 5. Corporate oversight of subsidiaries: Banco Santander sets minimum risk management and control standards through reference documents. Subsidiaries are responsible for translating these standards into their own internal policies and procedures. 1. #### Key risk types Grupo and Banco Santander’s risks categorization allows effective risk management, control and reporting, and includes, among others the following risk types: • Credit risk is the risk of loss arising from the failure of a customer or counterparty to meet its obligations to which the Santander Group has provided financing or entered into a contractual commitment, or from the deterioration of their credit quality. • Market risk is the risk incurred as a result of the effect of changes in market factors interest rates, exchange rates, equities and commodities, among others, may have on profits or capital. • Liquidity risk is the risk incurred because of adverse movements in the factors that determine the market value of financial instruments, such as interest rates, exchange rates, equity prices and commodities, among others. • Structural Risk is the risk of changes in the value or margin generation of the assets or liabilities in the banking book resulting from changes in market and behavioural factors. It also includes risks associated with insurance and pension activities, as well as the risk of not having an adequate amount or quality of capital to meet internal business objectives, regulatory requirements, or market expectations. • Capital risk , included within the scope of structural risk, is the risk that arises from the possibility of having an inadequate quantity or quality of capital to meet internal business objectives, regulatory requirements or market expectations. Grupo and Banco Santander also take into account, on an ongoing basis in its risk management, operational (includes fraud, technological, cyber, legal and conduct risks), financial crime (includes, among others, money laundering, terrorism financing, violation of international sanctions, corruption, bribery and tax evasion), model, reputational and strategic risks. These risks may be affected by a range of factors that we identify and assess in line with regulatory requirements and industry practice, including: geopolitical developments (international conflicts, economic and monetary decisions, new regulations or trade tensions); digital and transformation initiatives linked to technological change or shifts in business models; and sustainability factors — environmental (natural and climate-related, including extreme events and resource scarcity, as well as those arising from the transition to a more sustainable economy), social (relating to people’s rights, welfare and interests) and governance, both within Grupo and Banco Santander and among our counterparties. In particular, from an environmental and climate perspective, the relevant elements cover, on the one hand, those stemming from the physical effects of climate change and, on the other, those linked to the transition towards a more sustainable economy, including legislative and regulatory, technological or behavioural changes among economic agents. Given the nature of its operations, the Group and Bank have no environment-related liabilities, expenses, assets or contingencies that may be material to its consolidated equity, financial situation and results. 181 According to market consensus and our materiality assessment, exposure in the sectors where environmental factors may have the most impact mainly relate to wholesale customers. Our management of these customers considers environmental aspects in the preliminary assessment, credit origination and the preparation and review of their credit ratings, which influence the parameters we use to calculate their probability of default (PD). Thus, we embed the most material climate factors in our assessments and in capital loss and provisions calculations. Moreover, to cover and anticipate potential future losses from severe climate events, such as the Valencia DANA or Hurricane Milton in Florida, we have set overlays whose amount to date has not been material to the Group's total loan loss reserves. Grupo Santander has enhanced its methodological framework to quantify and assess transition and physical risks in credit losses for climate impacts that are not specifically captured through the forward-looking component implemented under the IFRS 9 framework. We assess these risks under several scenarios published by the NGFS, which explore varying assumptions on shifts in climate policies, emissions, temperatures and physical risk impacts. We take a proportionality approach by assessing the impact on the Group’s core markets and portfolios, especially non-financial entities and mortgage products. Regarding impact on companies’ credit quality, the model assesses the transmission of customers’ physical and transition climate risk through defined channels (sector GVA, GHG emissions, carbon price, regional GDP, or collateral valuations). For mortgage products, climate risk appears mainly through a deterioration in collateral values, as reflected in the loan-to-value ratio, which is the main transmission channel into LGD. These methodologies enable us to embed potential climate-event impacts on credit losses in credit risk management. Against this backdrop, we carried out both internal capital self-assessment exercises and regulatory stress tests. In light of the above and based on the best information available at the date of these consolidated annual financial statements, we also assessed the potential additional impact of climate and environmental risks on the Group’s equity, financial situation and results in 2025. We did not identify any significant or material impacts. . 2. Risk and compliance governance Grupo and Banco Santander  robust risk and compliance governance structure allows us to conduct effective oversight in line with our risk appetite. Grupo and Banco Santander stand on three lines of defence, a structure of committees and strong Group-subsidiary relations, guided by our risk culture, Risk Pro. 2.1 Lines of defence Grupo and Banco Santander’s model of three lines of defence effectively manages and controls risks: • First line: formed business functions, as well as all other functions that generate risk, constitute the first line of defence. They must establish an appropriate environment to manage all risks associated with the business and support compliance with internal policies and regulation. Risk management must operate within the approved risk appetite and associated limits. The first line executes mitigation plans for risks where weaknesses are identified in its control environment. • Second line: formed by the risk and compliance functions, independently oversees and challenges the risk management activities that the first line carries out. Its role is to help verify that we manage risks in line with the established risk appetite and to promote a strong risk culture across the organization. • Third line: formed by Internal Audit is a permanent function, independent of any other functions or units, whose objective is to provide the Management Body and the senior management with independent assurance on the quality and effectiveness of internal control, risk management (current or emerging) and governance processes and systems, thereby helping to protect the company’s value, solvency, and reputation. R isk, Compliance and Internal Audit are sufficiently separate and autonomous functions, with direct access to the board and its committees. The risk and compliance functions report to the risk supervision, regulation and compliance committee and the internal audit function reports to the audit committee. 2.2 Risk committee structure The board of directors has final oversight of risk and compliance management and control to promote a sound risk culture and review and approve risk appetite and frameworks, with support from its risk, regulation and compliance committee (RSRCC) and its executive committee.The Group and the Bank's risk governance keeps risk control and risk-taking areas separate. 182 Our governance structure also includes key roles and executive committees that strengthen oversight and support the effective performance of the control function. The Group chief risk officer (CRO), who leads the application and execution of risk strategy and promotes proper risk culture, is in charge of overseeing all risks and challenging and advising business lines on risk management. The Group chief compliance officer (CCO) leads the application and execution of the compliance and conduct risk strategy and reports the status of risks being monitored in order to provide the Chief Risk Officer with a comprehensive view of all risks. The CRO and the CCO report directly to both the risk supervision, regulation and compliance committee and the board of directors. The executive risk, risk control and compliance and conduct committees are executive committees with powers delegated from the board. Furthermore, the executive-level committees delegate part of their responsibilities to forums and/or standing meetings to manage and control each risk type. Their responsibilities include: • Inform the CRO, the CCO, the risk control committee and the compliance and conduct committee if risks are being managed within risk appetite; • Conduct regular follow-ups for each key risk type; and • Overseeing the measures adopted to meet supervisor's and auditor's expectations. Besides, Grupo and Banco Santander, in order to establish an adequate control environment for the management of each risk types, the risk and compliance functions have effective internal regulation to create the right environment to manage and control all risks. Grupo and Banco Santander may introduce additional governance measures for special situations to reinforce the monitoring of all risks, with particular focus on trends in key macroeconomic indicators and liquidity, the identification of vulnerable sectors/customers, and the strengthening of cybersecurity, among other aspects. Activating these special-situations forums helps the Group address the effects of the geopolitical and macroeconomic environment with resilience. 2.3 The Group's relationship with subsidiaries Grupo Santander subsidiaries’ risk and compliance management and control model is consistent with the frameworks approved by the Group board of directors. Subsidiaries adhere to the frameworks through their own boards and can only adapt to higher standards according to local law and regulation. As part of Santander's aggregated risk oversight, we challenge and review subsidiaries’ internal regulations and activities. This enables us to maintain a common risk management and control model across the Group. The risk and compliance functions support the businesses and oversee risks at both global and local levels. In addition, over the year we continued to strengthen the Group–subsidiary relationship model, leveraging our global scale to identify synergies under a common operating model and shared platforms. The model promotes process simplification and the reinforcement of control mechanisms to support the growth of our businesses. Santander's Group–subsidiary governance model (GSGM) sets out the principles that govern the relationship between Group key roles and the subsidiaries, which helps safeguard the independence of local second lines. The CRO and CCO take part in the appointment, objectives, performance reviews and remuneration of their local counterparts, which helps confirm that they are controlling risks appropriately. We continue to strengthen the relationship between the Group and its subsidiaries through close cooperation among our subsidiaries to develop common initiatives more efficiently, such as: • Transformation of organizational structures, sharing benchmarks across countries and contributing to the function’s strategic vision to promote the rollout of more advanced risk-management infrastructures and practices. • Exchange of best practices to strengthen processes and drive innovation. • Promotion of internal talent and mobility, both geographic and functional, as well as fostering diversity within teams to reflect the diversity of the environments in which we operate. • Developing our risk professionals, improving innovation, the quality of decisions, and fostering a global mindset is key to enhance organizational resilience and reinforcing a global mindset. The GSGM model also applies to the Group’s global businesses. This gives us a global-local organization in which countries ultimately remain responsible for delivering the budget, the business and customer strategy, and financial management, while the global businesses lead shared initiatives through common 183 operating models and shared technologies, improving local performance. 3. Management processes and tools Grupo and Banco Santander have these effective risk management processes and tools: 3.1 Risk appetite and structure of limits Risk appetite is the aggregate level and types of risk that Grupo Santander deems prudent for our business strategy, even in unforeseen circumstances. Risk appetite is governed throughout the Group by the following principles: • Risk appetite is part of the board's duties. The board prepares the risk appetite statement (RAS) for the whole Group every year. Through a cascading-down process, each subsidiary's board also sets its own risk appetite. • Comprehensiveness and forward-looking approach. Our appetite includes all material risks to which we are exposed and defines our target risk profile for the current and medium term, with a forward-looking view that considers stress scenarios. • Common standards embedded in the day-to-day risk management. The Group shares the same risk appetite model, which sets common requirements for processes, metrics, governance bodies, controls and standards. This facilitates effective and traceable embedding of risk appetite into more granular management policies and limits across our subsidiaries.. • Continuous monitoring and adaptation. Risk appetite is regularly monitored, reviewed and updated to reflect changes in market conditions, regulatory requirements and supervisory expectations. Compliance with risk appetite limits is monitored on a regular basis through dedicated reporting to senior management and the board and its committees. Breaches or potential breaches are subject to predefined escalation, remediation and follow-up processes, with oversight proportionate to their materiality through senior management and the Group’s governing bodies. • Alignment with strategy and business plans. Before approving the three-year strategic plans, annual budget, and capital and liquidity plans, the Group verifies their consistency with the limits set in the Risk Appetite Statement. We promote the alignment of strategic and business plans with our risk appetite by: • considering the risk appetite, long-term strategic view and the risk culture when drafting strategic and business plans. • challenging business and strategic plans against the risk appetite. Misalignments trigger a review of either the three-year strategic plan (to make sure we stay within RAS limits) or risk appetite limits, with independent governance. • continuous monitoring of risk appetite compliance through the three lines of defence model. The main elements underpinning Grupo and Banco Santander’s risk appetite and defining the business model are: • a medium-low, predictable target risk profile, customer focus, internationally diversified operations and a significant market share; • stable, recurrent earnings and shareholder remuneration, sustained by a sound base of capital, liquidity and sources of funding; • autonomous subsidiaries that are self-sufficient in terms of capital and liquidity to safeguard their risk profiles against compromising the Group and the Bank’s risk profile; • an independent risk function and a senior management actively engaged in supporting a robust control environment and risk culture; and • a conduct model that protects our customers and our Simple, Personal and Fair culture. The risk appetite is expressed through qualitative statements and limits on metrics representative of the bank’s risk profile at present and under stress. Those metrics cover all risk types according to our corporate risk framework. Grupo Santander articulates them in five axes that provide the Bank with a holistic view of all risks it incurs in the development of its business model. These five axes are applicable to all Santander's key risk types, and comprise: • P&L volatility: control of P&L volatility of business plan under baseline and stressed conditions (under normal and stressed conditions). • Solvency: control of capital ratios under baseline and stressed scenarios (aligned with ICAAP) . • Liquidity: control of liquidity ratios under base and stress scenarios (aligned with ILAAP). • Concentration: control of credit concentration on top clients, portfolios and industries. • Non financial risk and control environment: robust control on non financial risks aimed to minimize events which could lead to financial loss, operative, technological, legal and regulatory breaches, conduct issues or reputational damage. 184 #### b) Credit risk 1. #### Introduction to the credit risk treatment Grupo and Banco Santander take a holistic view of the credit risk cycle, including the transaction, the customer and the portfolio, in order to identify, analyse, control and decide on credit risk. Credit risk identification facilitates active and effective portfolio management and control. Grupo and Banco Santander classify external and internal risk in each business to adopt any corrective or mitigating measures through: 1.1. Planning Planning allows to set business objectives and define concrete action plans, integrating the risk appetite statement into portfolio management. Strategic commercial plans (SCPs) are the management and control tool that the Business and Risk areas define for credit portfolios, with support from the other functions involved (Finance, Management Control, among others). They set out the commercial strategy, risk policies, and the resources and infrastructure required, providing a holistic view of portfolio management. They also provide an up-to-date view of portfolio credit quality, enable risk measurement, support the execution of internal controls over the defined strategy, allow for periodic monitoring, and help detect material deviations or potential impacts, facilitating the adoption of corrective measures when necessary. SCPs are aligned with subsidiaries’ risk appetite and capital objectives, as well as those of the Group, and are approved and overseen by local senior management before being reviewed and ratified at Group and Bank level. 1.2. Risk assessment and credit rating Credit risk approval criteria focus on borrowers’ ability to meet their financial obligations. The assessment uses statistical models and an analysis of the net funds or cash flows generated by economic activity, or of regular income, to determine customers’ repayment capacity in a consistent and sustainable manner. Some statistical credit quality assessment models feed into decision engines to deliver a credit risk assessment quickly and in a consistent, standardised way. These engines support faster and more uniform decision- making, reduce manual errors, apply the same assessment criteria to all customers, and provide traceability and support regulatory compliance. These ratings have multiple uses in risk management, including the origination process (application of limits and pre-approvals), risk monitoring, and as an input to transaction pricing. These credit rating models may be: • Rating: from mathematical algorithms that have a quantitative model based on balance sheet ratios or macroeconomic variables or behavioural information, and a qualitative module supplemented by the credit analyst’s expert judgement. It is used for large corporates, corporates, institutional and SME segments (with individualised treatment). • Scoring: an automated system that assesses credit applications based on the information provided (admission scoring) or customers’ credit profiles based on their relationship with the institution (behavioural scoring). Both are complemented by other available information (for example, from external databases). The system automatically assigns each customer an individual score, which then supports the subsequent decision. It is used for individuals and small businesses with no assigned analyst. The Group and the Bank´s parameter estimation models rely on econometric models built on historical default and loss data from the portfolios. The Group, and therefore the Bank, use them to calculate economic and regulatory capital, and IFRS 9 and Bank of Spain Circular 4/2017 provisions, at operation, customer and portfolio level. A rigorous governance framework covers the ongoing monitoring and continuous calibration of these models to assess their suitability, predictive power, performance and granularity, as well as compliance with credit policies. In addition, the Group and the Bank review ratings using the latest available financial information and other relevant data. Grupo and Banco Santander´s limits, pre-classifications and pre-approvals processes determine the level of risk the Group can take on with each customer. Automated processes approve and monitor these decisions. Approved limits must align with expected profitability. To support this, we use profitability estimation and risk- based pricing tools that contribute to sustainable portfolio growth. 185 Grupo and Banco Santander apply various limits models to each segment: • Large corporate groups are subject to a pre- classification model based on a system for measuring and monitoring economic capital. Pre-classification models express the level of risk Grupo and Banco Santander are willing to assume in transactions with customers/groups. • In the corporate segment, for customers that meet certain predefined criteria (including internal rating and profitability), the Group applies a pre-classification model for the main products related to the customer’s recurring business. The model operates through the setting of internal nominal limits, which define the level of risk to take on with each customer based, among other factors, on their repayment capacity and leverage. Corporate transactions that exceed certain limits or have specific features must be handled through the approval process for an ad hoc proposal. • For individual customers and SMEs with low turnover, Grupo Santander manages large volumes of credit transactions using automated decision models that assess each case and assign a limit per customer and transaction. 1.3. Scenario analysis Grupo and Banco Santander’s scenario analyses determine the potential risks in its credit portfolios and provide a better understanding of our portfolios' performance under various macroeconomic conditions. They allow us to anticipate management strategies that will avoid future deviations from defined plans and targets. They simulate the impact of alternative scenarios in portfolios’ credit parameters (PD, LGD) and expected credit losses. Grupo Santander compares findings with portfolios’ credit profile indicators to find the right measures for managers to take. Credit risk management of portfolios and SCPs incorporate scenario analyses. 1.4. Monitoring Regular, holistic monitoring of customers and portfolios is an essential element of the Group’s credit risk management, as it enables continuous monitoring of credit quality, early identification of potential impairment and analysis of business performance against predefined plans and objectives. The monitoring process systematically analyses changes in credit exposures, customers’ financial and qualitative characteristics, and any relevant changes in their risk classification. This preventive approach draws on transactional information, behavioural indicators and advanced analytics tools, including early-warning engines, which support early identification of potential deterioration and the implementation of specific actions at both customer and portfolio level, based on the assigned monitoring level. Monitoring adapts to customer segmentation and the applicable management approach: • in the large corporate segment, monitoring is carried out jointly by the commercial managers and the risk analysts, which provides an up-to-date, comprehensive view of the customer’s credit quality at all times and supports the early identification of any potential deterioration. • In the commercial banking, institutions and SMEs with an assigned a credit analyst, he teams carry out enhanced monitoring of customers whose risk profile or specific circumstances require it. This includes the periodic review of their internal ratings based on relevant financial, behavioural and environmental indicators. • Monitoring of individual customers, businesses and smaller SMEs follows a system of automatic alerts to detect shifts in portfolios’ performance. The Group, and therefore the Bank, structure this process for customers with an assigned analyst through the SCAN (Santander Customer Assessment Note) monitoring framework. SCAN assigns a specific monitoring level to each customer, sets the related operating policies, defines concrete management actions, identifies accountable owners and establishes a review frequency aligned with the customer’s risk profile and relevance. In addition, the Group and therefore the Bank have aggregated control and analysis procedures that track portfolio performance, identify material deviations from strategic plans or defined alert thresholds, and help prioritise management focus areas. The process is complemented by contingency plans (risk playbooks), which support the early identification and management of impacts from external factors — such as macroeconomic, sector or market changes — and, where appropriate, trigger corrective measures, including adjustments to risk policies. 186 1.5. Credit risk mitigation techniques Grupo and Banco Santander Risk approval criteria generally focus on borrowers’ ability to meet their financial obligations, without prejudice to any collateral that the Bank may require. Collateral and guarantees provided by the obligor in favour of the Bank aim to modulate the level of exposure. To determine ability to pay, the Group and the Bank analyses funds or cash flows from businesses or other regular income, not including guarantors or loan collateral which are always considered at credit approval as a secondary means of recourse. A guarantee is an additional protection mechanism in a credit transaction, intended to mitigate loss in the event of a failure to meet the payment obligation. The Group applies different credit risk mitigation techniques depending, among other factors, on the customer and product type. Some are specific to an individual transaction (e.g., real estate guarantees), while others apply to a set of transactions (e.g., derivatives netting or collateral arrangements). These techniques may be grouped into personal guarantees, real guarantees and hedges using credit derivatives. The correct acceptance of these mitigation techniques is established by verifying their legal enforceability in all jurisdictions. The entire process is subject to internal control and effective monitoring of the valuation of the guarantees, especially real estate guarantees. 1.6. Collections & recoveries management Recovery activity is a relevant function within Grupo Santander’s risk management and control framework, as it contributes to portfolio quality as one of the key pillars supporting the Bank’s development, growth and business sustainability. Collections and debt recovery management is a specific, ongoing focus to keep portfolio quality within the expected levels. The Collections and Recoveries area defines a global management strategy, based on an end-to-end approach and general lines of action for subsidiaries. Recovery management operates under policies and an independent control environment defined by the risk function, aligned with regulatory requirements and with the Group Santander conduct risk management model. The Group carries out this activity in line with strategies defined by the recovery function, in coordination with the Risk areas. The recovery strategy combines advanced customer segmentation and the intensive use of digital tools. This supports the optimisation of mass portfolio management and provides tailored support for customers who require individual treatment. The customer remains the focus, and recovery strategies are defined in the context of the relationship with the customer, prioritising the customer’s viability. As a result, teams manage the customer holistically across all phases of the cycle. The function’s approach covers the entire credit cycle, prioritising solutions that support customer viability. Even after the asset is written off (failed risk), the Group continues to carry out the necessary actions to maximise recovery. The failed risk category includes debt instruments, whether past due or not, for which, following an individual assessment, recovery is considered remote due to a significant and irreversible deterioration in the solvency of the exposure or the holder. Classification in this category entails the full or partial cancellation of the exposure’s gross carrying amount and its derecognition from the balance sheet, without implying that the Group stops negotiations and legal proceedings to recover the amount. 187 2. Main aggregates and variations Below are the main aggregates relating to credit risk from our activities with customers: | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Main credit risk performance metrics from activity with customers A | | | | | | | | | | December data | | | | | | | | | | | Credit risk with customers (EUR million) B | | | Credit impaired loans (EUR million) | | | NPL ratio (%) | | | | 2025 | 2024 | | 2025 | 2024 | | 2025 | 2024 | | Spain | 302,271 | 285,883 | | 5,915 | 7,672 | | 1.96 | 2.68 | | UK | 244,303 | 248,061 | | 2,645 | 3,299 | | 1.08 | 1.33 | | Portugal | 44,674 | 41,418 | | 928 | 993 | | 2.08 | 2.40 | | Poland | 46,427 | 44,704 | | 1,549 | 1,636 | | 3.34 | 3.66 | | US | 147,303 | 148,643 | | 7,150 | 7,012 | | 4.85 | 4.72 | | Mexico | 53,476 | 49,927 | | 1,420 | 1,352 | | 2.65 | 2.71 | | Brazil | 105,410 | 104,519 | | 7,192 | 6,418 | | 6.82 | 6.14 | | Chile | 44,146 | 44,590 | | 2,528 | 2,394 | | 5.73 | 5.37 | | Argentina | 8,813 | 8,411 | | 677 | 173 | | 7.68 | 2.06 | | DCB Europe | 144,039 | 141,312 | | 3,642 | 3,527 | | 2.53 | 2.50 | | Corporate Centre | 6,356 | 5,959 | | 271 | 301 | | 4.27 | 5.06 | | Total Group | 1,181,945 | 1,157,273 | | 34,393 | 35,265 | | 2.91 | 3.05 | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | NPL coverage ratio (%) | | | Loan-loss provisions C (EUR million) | | | Cost of risk (%/risk) D | | | | 2025 | 2024 | | 2025 | 2024 | | 2025 | 2024 | | Spain | 55.0 | 53.0 | | 1,142 | 1,259 | | 0.44 | 0.50 | | UK | 33.0 | 29.0 | | 177 | 64 | | 0.07 | 0.03 | | Portugal | 83.0 | 79.0 | | -8 | 11 | | (0.02) | 0.03 | | Poland | 65.0 | 62.0 | | 283 | 511 | | 0.71 | 1.38 | | US | 55.0 | 64.0 | | 2,244 | 2,507 | | 1.63 | 1.82 | | Mexico | 105.0 | 100.0 | | 1,239 | 1,277 | | 2.69 | 2.64 | | Brazil | 83.0 | 83.0 | | 4,409 | 4,487 | | 4.73 | 4.51 | | Chile | 48.0 | 50.0 | | 531 | 497 | | 1.32 | 1.19 | | Argentina | 90.0 | 177.0 | | 574 | 284 | | 7.34 | 4.59 | | DCB Europe | 87.0 | 83.0 | | 1,363 | 1,209 | | 0.97 | 0.88 | | Corporate Centre | 24.0 | 25.0 | | 198 | (3) | | 3.30 | (0.05) | | Total Group | 66.0 | 65.0 | | 12,411 | 12,333 | | 1.15 | 1.15 | A. Management perimeter according to the reported segments. B. Includes gross loans and advances to customers, guarantees and documentary credits. C. Post write-off recoveries (EUR 1,795 million). D. Provisions to cover losses due to impairment of loans in the last 12 months / average customer loans and advances of the last 12 months. 188 Information on the estimation of impairment losses The calculation of provisions for credit risk losses is performed at financial asset level, estimating potential credit losses through the difference between the contractual cash flows and the expected cash flows, ensuring that the results are adequate considering the status of the transaction, economic conditions and available forward-looking information. The Bank of Spain circular 4/2017 impairment model applies to financial assets valued at amortized cost; debt instruments valued at fair value with changes in other comprehensive income; leasing receivables; and commitments and guarantees not valued at fair value. The portfolio of financial instruments subject to the Bank of Spain circular 4/2017 has three credit risk categories (or stages) according to the status of each instrument in relation to its level of credit risk: • Stage 1: financial instruments with no significant increase in risk since initial recognition – the impairment provision reflects expected credit losses from defaults over the 12 months from the reporting date. • Stage 2: financial instruments with a significant credit risk increase since initial recognition but no materialized impairment event – the impairment provision reflects expected losses from defaults over the financial instrument’s residual life. • Stage 3: financial instruments with true signs of impairment as a result of one or more events resulting in a loss – the impairment provision reflects expected losses for credit risk over the instrument’s expected residual life. The classification of financial instrument in the Bank of Spain circular 4/2017 stages is carried out in accordance with the guidelines through the risk management policies of the Bank, which are consistent with the Group's policies. Estimation of expected loss The Group and the Bank use parameters (mainly EAD, PD, LGD and the discount rate) to calculate impairment provisions. These parameters build on the infrastructure of internal models used to calculate regulatory capital and on regulatory and management expertise, and they also reflect each financial asset’s stage classification. However, these parameters are not a simple adaptation of existing models. We designed and validated them specifically in line with IFRS 9 requirements and guidance from bodies such as the EBA, , National Competent Authority (NCA), Bank for International Settlements (BIS) or Global Public Policy Committee (GPPC). Their development incorporates forward-looking information, a point-in-time (PIT) approach, multiple scenarios and lifetime loss estimation through lifetime PD, among other elements. Determination of significant increase in credit risk (SICR) To determine classification in Stage 2, the Group assesses whether a SICR has occurred since the initial recognition of the exposures. The Group performs this assessment under common principles applicable across the Group, reviewing all financial instruments subject to this analysis and taking into account the specific features of each portfolio and product type through a range of quantitative and qualitative indicators. Expert judgement from analysts supports the SICR assessment. Analysts set the thresholds within an integrated management framework and in line with the approved corporate governance. The principles are as follows: • Universality: all financial instruments subject to a credit rating must be assessed for their possible SICR. • Proportionality: the definition of the SICR must take into account the particularities of each portfolio. • Materiality: its implementation must be also consistent with the relevance of each portfolio so as not to incur in unnecessary costs or efforts. • Holistic vision: the approach selected must be a combination of the most relevant credit risk aspects (e.g. quantitative and qualitative). • Application of IFRS 9 and Bank of Spain Circular 4/2017: the approach must take into consideration IFRS 9 and Bank of Spain Circular 4/2017 characteristics, focusing on a comparison with credit risk at initial recognition, as well as considering forward-looking information. • Risk management integration: the criteria must be consistent with those metrics considered in the day- to-day risk management. • Documentation: appropriate documentation must be prepared. 189 The techniques are summarised below: • Stability of stage 2: in the absence of significant changes in the portfolios credit quality, the volume of assets in stage 2 should maintain a certain stability as a whole. • Economic reasonableness: at transaction level, stage 2 is expected to be a transitional rating for exposures that could eventually move to a deteriorating credit status at some point or stage 3, as well as for exposures that have suffered credit deterioration and whose credit quality is improving and returns to stage 1. • Predictive power: it is expected that the SICR definition avoids, as far as possible, direct migrations from stage 1 to stage 3 without having been previously classified in stage 2. • Time in stage 2: it is expected that the exposures do not remain categorized as stage 2 for an excessive time. The application of the aforementioned techniques, conclude in the setting of one or several thresholds for each portfolio in each geography. Likewise, these thresholds are subject to a regular review by means of calibration tests, which may entail updating the thresholds types or their values. Identifying a significant increase in credit risk: when classifying financial instruments under stage 2, Banco Santander considers: • Quantitative criteria: Grupo and Banco Santander review and quantify changes in the risk of default during their expected life based on their credit risk level on initial recognition. For the purposes of assessing significant changes when financial instruments are classified in Stage 2, each subsidiary has set quantitative thresholds for its portfolios in line with Group guidelines, seeking a consistent interpretation across all our geographies. The calibration principles for these thresholds are set out in the previous paragraph and may result in two types of thresholds: • Relative. Thresholds that compare current credit quality with credit quality at origination, expressed as a percentage change. • Absolute. Thresholds that compare current credit quality with credit quality at origination, expressed as an absolute change.. In addition, in line with the ECB’s supervisory expectations, the Group has set a 200% cap on the relative threshold, known as the 'threefold increase'. As a result, exposures whose credit quality has deteriorated by more than 200% in relative terms — using an approach analogous to the relative threshold described in the previous paragraph — transfer from Stage 1 to Stage 2. Meeting any of the absolute thresholds, the relative thresholds or the 200% cap on the relative threshold (threefold increase) on an individual basis results in the transfer of the financial instrument exposure from Stage 1 to Stage 2. In addition, the Group may apply the Low Credit Risk Exemption at the reporting date, so that certain exposures that continue to meet this condition may remain in Stage 1. This exemption applies only to quantitative significant increase in credit risk criteria; therefore, qualitative criteria are not eligible for exemption. The Group uses it on a limited basis, documents it and reviews it periodically. When an exposure no longer meets the low credit risk condition, it transfers to Stage 2 in line with the criteria above. • Qualitative criteria: several indicators aligned with ordinary credit risk management indicators (e.g. past due for over 30 days, forbearance, early warning indicators system, etc.). Each subsidiary has defined these indicators for their portfolios, with special attention to reinforcing these qualitative criteria through expert judgment and aligning them to the criteria used in management. When the presumption of a significant deterioration of credit risk is removed, due to a sufficient improvement of the credit quality, the obligor can be re-classified to stage 1, without any probationary period in stage 2. • Definition of default: Grupo and Banco Santander incorporated the new definition to provisions calculation according to the EBA’s guidelines; the Group and the Bank are also considering applying it to prudential framework. In addition, the default definition and stage 3 have been aligned. This definition considers the following criteria to classify exposures as stage 3: financial instruments with one or more payments more than 90 consecutive days past due, representing at least 1% of the client's total exposure or the identification of other criteria demonstrating, even in the absence of defaults, that it is unlikely that the counterparty is unlikely to meet all of its financial obligations. The Group and the Bank apply the default criteria to all exposures of the impaired client. Where an obligor belongs to a group, the default criteria may also be applied to all exposures of the group. The default classification is maintained during the 3- month test period following the disappearance of all default indicators described above, and this period is extended to one year for forbearances that have been classified as default. 190 • Expected life of financial instruments: Grupo and Banco Santander estimate the expected life of financial instruments according to their contractual terms (e.g. prepayments, duration, purchase options, etc.). The contractual period (including extension options) is the maximum time frame for measuring the expected credit loss. If financial instruments have an undefined maturity period and undrawn amounts (e.g. credit cards), the Group and the Bank estimate their expected life based on the total exposure period and effective management practices to mitigate exposure. 1. Forward-looking vision Estimating expected credit losses (ECL) requires significant expert judgement and the incorporation of historical, current and forward-looking information. Expected loss estimates are therefore based on an unbiased, probability-weighted likelihood of up to five possible future scenarios that could affect the collection of contractual cash flows. These scenarios consider the time value of money, relevant information available on past events, current conditions and forecasts of the macroeconomic factors considered important in estimating this amount (e.g. GDP, house prices and the unemployment rate, among others). Grupo and Banco Santander use forward-looking information in internal management and regulatory processes under several scenarios. The Group and the Bank's guidelines and governance seek synergy and consistency between these different processes. 2. Additional elements Additional elements will be required when necessary because they have not been captured under the two previous elements. This has included, among others, the analysis of sectors most affected if their impacts are not sufficiently captured by the macroeconomic scenarios. Also collective analysis techniques, when the potential impairment in a group of clients cannot be identified individually. With the elements indicated above, Grupo and Banco Santander have evaluated the evolution of the credit quality of its customers, for the purposes of classifying them into stages and consequently calculating expected loss. Management overlays During 2025, the Group strengthened coverage across its portfolios by implementing overlays, mainly in Brazil, Chile and Mexico, where it increased the PMA buffer to anticipate the impact of the year’s model recalibrations, as well as other potential deviations. In addition, the Group gradually released the adjustments related to climate events, such as the Valencia dana experienced in late October 2024, in the case of Santander Spain and the Spanish DCB office. Overall, the amount of overlays at year-end 2025 remains immaterial compared with the Group’s total allowance for credit losses. Exposure and loan-loss reserves Then, considering the most relevant units of the Group (United Kingdom, Spain, United States, Brazil, also Chile, Mexico, Portugal, Poland, Argentina and Santander Consumer Finance), which represent approximately 96% of the total Group's provisions. The table below shows the loan-loss reserves associated with each stage as of 31 December 2025 and 2024. In addition, depending on the transactions credit quality, the exposure is divided into four categories according to Standard & Poor's rating scale: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Exposure and impairment losses by stage | | | | | | EUR million | | | | | | | 2025 | | | | | Credit quality A | Stage 1 | Stage 2 | Stage 3 | Total | | From AAA to AA- | 121,023 | 2,295 | — | 123,318 | | From A+ to BB | 383,494 | 15,188 | — | 398,682 | | From BB- to B- | 300,108 | 47,292 | — | 347,400 | | CCC and below | 8,146 | 17,733 | 32,664 | 58,543 | | Total exposure B | 812,771 | 82,508 | 32,664 | 927,943 | | Impairment losses C | 3,147 | 4,915 | 13,900 | 21,962 | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Exposure and impairment losses by stage | | | | | | EUR million | | | | | | | 2024 | | | | | Credit quality A | Stage 1 | Stage 2 | Stage 3 | Total | | From AAA to AA- | 108,977 | 2,599 | — | 111,576 | | From A+ to BB | 431,544 | 16,600 | — | 448,144 | | From BB- to B- | 288,302 | 45,129 | — | 333,431 | | CCC and below | 10,431 | 17,088 | 32,901 | 60,420 | | Total exposure B | 839,254 | 81,416 | 32,901 | 953,571 | | Impairment losses C | 3,276 | 4,715 | 13,669 | 21,660 | 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). 191 The remaining units that form the totality of the Group exposure, account for EUR 93,731 million EUR 89,094 million in stage 1; EUR 3,528 million in stage 2; and EUR 1,109 million in stage 3 (in 2024 EUR 80,541 million in stage 1; EUR 2,534 million in stage 2, and EUR 874 million in stage 3. The remaining exposure, including all financial instruments not included before, amounts to EUR 834,911 million (EUR 665,476 million in  2024), and it includes all undrawn authorized lines (loan commitments). As of 31 December 2025, the Group had EUR 334 million net of provisions (EUR 559 million at 31 December 2024) of purchased credit-impaired assets, which relate mainly to the business combinations carried out by the Group. In relation to the evolution of credit risk provisions, the Group, together with its main geographies, monitors them through sensitivity analyses that assess the impact of changes in macroeconomic scenarios and their key variables on the allocation of financial assets across stages and on the measurement of credit risk provisions. Additionally, based on consistent macroeconomic scenarios, Grupo and Banco Santander also perform stress tests and sensitivity analysis in a regular basis, such as ICAAP, strategic plans, budgets and recovery and resolution plans. In this sense, a prospective view of the sensitivity of each of the Group’s loan portfolio is created in relation to the possible deviation from the base scenario, considering both the macroeconomic developments in different scenarios and the three year evolution of the business. These tests include potentially adverse and favourable scenarios. 3. Credit risk management Following is the risk information relating to the geography of Grupo España portfolio in terms of exposure and risk allowances. This information includes sensitivity analysis, consisting on simulations of +/-100 bp in the main macroeconomic variables. A set of specific and complete scenarios is used in each geography, where different shocks that affect both the reference macroeconomic variable as well as the rest of the parameters is simulated, with different intensities. These shocks collect mainly the most relevant risks and may be originated by productivity, tax, wages or exchange and interest rates factors. Sensitivity is measured as the average variation on expected loss corresponding to the aforementioned movement of +/-100 bp. Following a conservative approach, the negative movements take into account one additional standard deviation in order to reflect the potential higher variability of losses. 3.1. Credit portfolio in Spain Portfolio overview Santander España’s credit risk totalled EUR 302,271 million (26% of Grupo Santander’s total). It is appropriately diversified among products and customer segments. The NPL ratio was 1.96%, 73 bps lower than in December 2024. This decrease was driven by the portfolio’s strong performance, supported by the execution of the NPL reduction plan. The NPL coverage ratio increased slightly to 55%(+2 p.p. year-on-year). The cost of risk decreased to 0.44% (-7 bps vs. December 2024), driven by the strong performance of the SME and corporate portfolios, partly offset by the performance of the individuals portfolio. Macroeconomic projections suggest the economy will moderate its growth pace slightly, but will remain dynamic and well above the eurozone average, as the Spanish economy has largely been supported by stronger domestic demand amid a weaker-than- expected external sector. Residential mortgage portfolio Residential mortgages in Spain, including Santander Consumer Finance business, amounted to EUR 60,002 million in 2025 (EUR 59,316 millions  in 2024), 99.64% of which have a mortgage guarantee (99.65% in 2024). 192 | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR million | | | | | | | 2025 | | | | | | Santander Group Spain | | Of Which, Banco Santander, S.A. | | | | Gross amount | Of which: impaired | Gross amount | Of which: Non- performing | | Home purchase loans to families | 60,002 | 625 | 59,809 | 620 | | Without mortgage collateral | 215 | 7 | 215 | 7 | | With mortgage collateral | 59,787 | 618 | 59,594 | 613 | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR million | | | | | | | 2024 | | | | | | Santander Group Spain | | Of Which, Banco Santander, S.A. | | | | Gross amount | Of which: impaired | Gross amount | Of which: Non- performing | | Home purchase loans to families | 59,316 | 789 | 59,113 | 785 | | Without mortgage collateral | 208 | 11 | 209 | 11 | | With mortgage collateral | 59,108 | 778 | 58,904 | 774 | The NPL ratio for the residential mortgages portfolio stood at 1.03%, with a reduction of 29 bps, compared to 31 December 2024, mainly due to by portfolio sales, although credit risk registered an increase of 1.2% compared to December 2024. The mortgage portfolio for the acquisition of homes in Spain is characterised by its medium-low risk profile, which limits expectations of any potential additional impairment: • Principal is repaid on all mortgages from the start. • Early repayment is common so the average life of the transaction is well below that of the contract. • High quality of collateral, concentrated almost exclusively in financing for first homes. • The average affordability rate at 22% (24% in2024). • The 94% of the portfolio has a LTV below 80% calculated as total risk/latest available house appraisal. • All customers applying for a residential mortgage are subject to a rigorous credit risk and viability assessment, analysing whether their income is sufficient to meet all repayments and will remain stable over the term of the loan. 193 Breakdown of the credit with mortgage guarantee to households for house acquisition, according to the percentage that the total risk represents on the amount of the latest available valuation (loan to value): | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | | | | | | | 2025 | | | | | | | Loan to value ratio | | | | | | | | Less than or equal to 40% | More than 40% and less than 60% | More than 60% and less than 80% | More than 80% and less than or equal to 100% | More than 100% | Total | | Santander Group | | | | | | | | Gross amount | 17,191 | 20,310 | 18,811 | 2,812 | 663 | 59,787 | | Of which impaired | 122 | 158 | 151 | 84 | 103 | 618 | | Of which, Banco Santander, S.A. | | | | | | | | Gross amount | 17,102 | 20,245 | 18,783 | 2,804 | 660 | 59,594 | | Of which,  impaired | 119 | 157 | 151 | 84 | 102 | 613 | In November 2022, Royal Decree-Law 19/2022 was published, which establishes a Code of Good Practices in response to the rise in interest rates on mortgage loans for primary residences and Royal Decree-Law 6/2012 of protection measures for mortgage debtors without resources. The code of good practices is focused on granting capital grace periods and extending the term of the operations. The requests made have not been significant. Corporate & SME financing Credit risk with SME and corporates in commercial banking amounted to EUR 99,395 million, lower than December 2024, mainly due to the fall in the portfolio of SMEs of 10.1%. This portfolio accounting for 33% of the total, compared to 41% of CIB's portfolio, which from 2022 includes branches in Europe. Most of the portfolio corresponds to clients who have been assigned a credit analyst, who performs continuous management of said clients during all phases of the risk cycle.The portfolio is broadly diversified and not concentrated by sector of activity. The ICO loans that were granted as a result of the pandemic (25,428 million euros) are being repaid normally and there is a balance of EUR 10.857 billion, so they now represent only around 3.6% of Santander Spain's total portfolio. During 2025, Santander Spain maintained its support and close engagement with SMEs and the self-employed through the various support lines, which were significantly less material than the post- pandemic programmes (Líneas ICO Empresas y Emprendedores, Línea ICO Internacional y Rehabilitación de vivienda). In the case of delinquent operations with ICO guarantee, the transfer of the overdue guaranteed amounts will take place as the guarantee is executed, regardless of whether the guarantor is subrogated to the right to receive said amounts, according to the regulation of these guarantees. The de-recognition of the transferred guaranteed amounts will entail the recognition, at its fair value, of a collection right against the guarantor. The portfolio’s NPL ratio stood at 4.10% in December 2025. The NPL ratio decreased by 97 bps compared to December 2024, largely due to a proactive effort to reduce the stock of NPLs in the SME portfolio, through proactive management of non-performing exposures supported by portfolio sales and the management of specific cases. Real estate activity Santander has specialized teams that are in charge of managing real estate business production and risk areas that cover the entire life cycle of these operations. The changes in gross property development loans to customers were as follows: | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Balance at beginning of year | 2,545 | 2,433 | | Foreclosed assets | — | — | | Net variation | 441 | 112 | | Written-off assets | (2) | 0 | | Balance at end of year | 2,984 | 2,545 | 194 The NPL ratio of this portfolio (considering only the on balance amount) ended the year at 1.04% (compared with 2.28% at December 2024). The table below shows the distribution of the portfolio. The coverage ratio of the real estate doubtful exposure in Spain stands at 36.21% in 2024). | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | EUR million | | | | | | | | | 2025 | | | | | | | Santander Group | | | Of which,  Banco Santander, S.A. | | | | EUR Million | Gross amount | Excess of gross exposure over maximum recoverable amount of effective collateral | Specific allowance | Gross amount | Excess of gross exposure over maximum recoverable amount | Specific allowance | | Financing for construction and property development (including land) (business in Spain) | 2,984 | 211 | 17 | 3,015 | 875 | (17) | | Of which impaired | 31 | — | 11 | 31 | 4 | (11) | | Memorandum items written-off assets | 240 | — | — | 240 | — | — | | | | | | --- | --- | --- | | | | | | Memorandum items: Data from the public balance sheet | | | | EUR million | | | | | 2025 | | | Carrying amount | | | | Santander Group | Of which, Banco Santander, S.A. | | Total loans and advances to customers excluding the Public sector (business in Spain) (Book value) | 240,609 | 228,645 | | Total consolidated assets (Total business) (Book value) | 1,867,515 | 836,783 | | Impairment losses and credit risk allowances. Coverage for unimpaired assets (business in Spain) | 1,086 | 1,145 | 195 At year-end, the distribution of this portfolio was as follows: | | | | | --- | --- | --- | | | | | | EUR Million | | | | | | | | | Loans: Gross amount | | | | Santander Group | Of which, Banco Santander, S.A. | | 1. Without mortgage guarantee | 14 | 14 | | 2. With mortgage guarantee | 2,970 | 3,001 | | 2.1 Completed buildings | 976 | 995 | | 2.1.1 Residential | 658 | 677 | | 2.1.2 Other | 318 | 318 | | 2.2 Buildings and other constructions under construction | 1,981 | 1,993 | | 2.2.1 Residential | 1,913 | 1,925 | | 2.2.2 Other | 68 | 68 | | 2.3 Land | 13 | 13 | | 2.3.1 Developed consolidated land | 9 | 9 | | 2.3.2 Other land | 4 | 4 | | Total | 2,984 | 3,015 | Foreclosed properties At 31 December 2025, the net balance of these assets amounted to EUR 1,898 million (EUR 2,131 million at 31 December 2024), gross amount of EUR 4,258 million (EUR 4,823 million at 31 December 2024); recognised allowance of EUR 2,360 million (EUR 2,692 million at 31 December 2024). 196 | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR million | | | | | | | 2025 | | | | | | Gross carrying amount | Valuation adjustments | Of which impairment losses on assets since time of foreclosure | Net Carrying amount | | Property assets arising from financing provided to construction and property development companies | 3,843 | 2,144 | 1,591 | 1,699 | | Of which: | | | | | | Completed buildings | 481 | 324 | 282 | 157 | | Residential | 129 | 71 | 60 | 58 | | Other | 352 | 253 | 222 | 99 | | Buildings under construction | 107 | 49 | 35 | 58 | | Residential | — | — | — | — | | Other | 107 | 49 | 35 | 58 | | Land | 3,255 | 1,771 | 1,274 | 1,484 | | Developed land | 776 | 429 | 260 | 347 | | Other land | 2,479 | 1,342 | 1,014 | 1,137 | | Property assets from home purchase mortgage loans to households | 334 | 172 | 119 | 162 | | Other foreclosed property assets | 81 | 44 | 36 | 37 | | Total property assets | 4,258 | 2,360 | 1,746 | 1,898 | The same information in the previous table reference to Banco Santander, S.A. is presented below: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR million | | | | | | | 2025 | | | | | | Gross carrying amount | Valuation adjustments | Of which impairment losses on assets since time of foreclosure | Net Carrying amount | | Property assets arising from financing provided to construction and property development companies | 277 | 189 | 165 | 88 | | Of which: | | | | | | Completed buildings | 268 | 184 | 160 | 84 | | Residential | 71 | 39 | 33 | 32 | | Other | 197 | 145 | 127 | 52 | | Buildings under construction | — | — | — | — | | Residential | — | — | — | — | | Other | — | — | — | — | | Land | 9 | 5 | 5 | 4 | | Developed land | 5 | 3 | 3 | 2 | | Other land | 4 | 2 | 2 | 2 | | Property assets from home purchase mortgage loans to households | 313 | 163 | 113 | 150 | | Other foreclosed property assets | 64 | 35 | 29 | 29 | | Total property assets | 654 | 387 | 307 | 267 | 197 In addition, the Group has shareholdings in entities holding foreclosed assets amounting to EUR 36 million and equity instruments foreclosed or received in payment of debts amounting to EUR 10 million. In recent years, the Group and the Bank have considered foreclosure to be an option to resolve cases of default instead of legal proceedings. The Group and the Bank initially recognise foreclosed assets at the lower of the carrying amount of the debt (net of provisions) and the fair value of the foreclosed asset (less estimated costs to sell). Subsequent to initial recognition, the assets are measured at the lower of fair value (less costs to sell) and the amount initially recognised. The fair value of this type of assets is determined by the market value (appraisal) adjusted with discounts obtained according to internal valuation methodologies based on the entity's sales experience in goods with similar characteristics. The management of real estate assets on the balance sheet is carried out through companies specializing in the sale of real estate that is complemented by the structure of the commercial network. The sale is realised with at prices in accordance with the market situation and the offer of wholesale buyers. The gross movement in foreclosed properties were as follows (EUR billion): | | | | | --- | --- | --- | | | | | | | 2025 | 2024 | | Gross additions | 0.1 | 0.1 | | Disposals | (0.7) | (0.8) | | Difference | (0.6) | (0.7) | Information on the estimation of impairment losses The detail of Santander Spain exposure and loan-loss reserves associated with each of the stages at 31 December, 2025 and  2024 is shown below. In addition, the exposure is divided in four tranches of the Standard & Poor's rating scale, according to their current credit quality: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Exposure and loan-loss reserves by stage | | | | | | EUR million | | | | | | | 2025 | | | | | Credit quality A | Stage 1 | Stage 2 | Stage 3 | Total | | From AAA to AA- | 35,407 | 171 | — | 35,578 | | From A+ to BB | 109,001 | 1,453 | — | 110,454 | | From BB- to B- | 37,089 | 8,262 | — | 45,351 | | CCC and below | 2,189 | 1,680 | 5,761 | 9,630 | | Total exposure B | 183,686 | 11,566 | 5,761 | 201,013 | | Impairment losses C | 382 | 483 | 2,204 | 3,069 | | | | | | | | --- | --- | --- | --- | --- | | | | | | | | Exposure and loan-loss reserves by stage | | | | | | EUR million | | | | | | | 2024 | | | | | Credit quality A | Stage 1 | Stage 2 | Stage 3 | Total | | From AAA to AA- | 35,347 | 110 | — | 35,457 | | From A+ to BB | 104,197 | 1,124 | — | 105,321 | | From BB- to B- | 37,413 | 8,844 | — | 46,257 | | CCC and below | 2,084 | 3,199 | 6,618 | 11,901 | | Total exposure B | 179,041 | 13,277 | 6,618 | 198,936 | | Impairment losses C | 340 | 570 | 2,953 | 3,863 | A. Detail of credit quality ratings calculated for Group management purposes. Excluding the SCIB branches business 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). From the information detailed above, Banco Santander, S.A. reaches a total gross exposure of EUR 353,957 million in the heading of financial assets at amortized cost (see note 6 and 10) and EUR 149,881 million in loan commitments granted for off-balance sheet exposures (see note 31) Impairment losses amount to EUR 3,113 and EUR 179 million, respectively. (The amount of losses due to impairment of off-balance sheet exposures includes the coverage of financial guarantees and other commitments granted in addition to the aforementioned loan commitments). For the estimation of the expected losses, the prospective information is taken into account. Specifically, Santander Spain considers three macroeconomic scenarios, which are updated periodically. The projected evolution for a period of five years of the main macroeconomic indicators used by Santander Spain for estimating expected losses as of 2025, is presented below: | | | | | | --- | --- | --- | --- | | | | | | | | 2026-2030 | | | | Variables | Pessimistic scenario | Base scenario | Optimistic scenario | | Interest rate | 2.7% | 2.5% | 2.3% | | Unemployment rate | 12.1% | 9.7% | 8.2% | | Housing price change | 3.3% | 4.1% | 4.7% | | GDP growth | 0.2% | 1.6% | 2.4% | 198 Each macroeconomic scenarios is associated with a given weight. As for its allocation, Santander Spain associates the Base scenario with the highest weight, while associating the lower weights to the most extreme scenarios: | | | | | --- | --- | --- | | | | | | | 2025 | 2024 | | Pessimistic scenario | 30% | 30% | | Base scenario | 40% | 40% | | Optimistic scenario 1 | 30% | 30% | The sensitivity analysis of the main portfolios expected loss to variations of +/-100 bp for the macroeconomic variables used in the construction of the scenarios, at December 31 2025, is as follows: | | | | | | --- | --- | --- | --- | | | | | | | | Change in Provision | | | | | Mortgages | Corporates | Others | | GDP Growth | | | | | -100 bps | 8.5% | 1.1% | 2.1% | | +100 bps | (3.6)% | (0.9)% | (1.9)% | | Housing price change | | | | | -100 bps | 8.4% | 1.5% | 3.4% | | +100 bps | (6.7)% | (0.7)% | (1.8)% | | Unemployment rate | | | | | -100 bps | (6.0)% | (1.5)% | (3.7)% | | +100 bps | 14.7% | 1.8% | 4.7% | To determine Stage 2 classification, Santander Spain applies quantitative criteria based on identifying increases in the lifetime PD of an exposure above a relative or absolute threshold. The threshold differs by portfolio depending on the characteristics of the exposures, and an exposure is considered to exceed the threshold when its lifetime PD increases by a set amount compared with the PD at initial recognition. Santander Spain calibrates these thresholds periodically, as described in previous paragraphs. In addition, Santander Spain applies a backstop to the relative threshold across all portfolios. As a result, Santander Spain classifies contracts as Stage 2 when their current PD has increased by more than two times compared with the PD at origination. Santander Spain also considers specific qualitative criteria that indicate a significant increase in credit risk, regardless of how the PD has evolved since initial recognition. Among other criteria, Santander Spain considers that an exposure shows a significant increase in credit risk when it is more than 30 days past due or when its early warning system so determines. 4. Other credit risk aspects 4.1. Credit risk by activity in the financial markets This section covers credit risk from treasury, with money market financing and counterparty risk products to satisfy the needs of customers (especially credit institutions) and the Group and the Bank. Counterparty credit risk is defined as the risk that could arise from a total or partial failure to meet the financial obligations entered into with the entity, because a customer may default before the final settlement of the transaction’s cash flows. This risk usually increases the longer the period between the trade date and the settlement date. It is a bilateral credit risk that can affect both parties to the transaction, and its magnitude is uncertain, as it depends on volatile market factors. Within counterparty credit risk exposure, an additional risk known as wrong-way risk may arise. It occurs when exposure to a portfolio or counterparty increases at the same time as its credit quality deteriorates. In other words, wrong-way risk exists when default risk increases and, as a result, the exposure to the counterparty also increases. Santander has specific models to measure and control this risk. Settlement risk arises when the settlement of a transaction involves a bilateral exchange of flows or assets between two counterparties. For example, when a counterparty buys dollars in exchange for euros, settlement involves one party delivering euros and receiving an equivalent amount of dollars from the other. Settlement risk is the risk that one of the parties fails to meet its settlement obligations. We have also developed a global infrastructure and specific models to measure this risk. To manage and control counterparty risk, it is essential to have an infrastructure that allows measuring current and potential exposure at different levels of aggregation and granularity in an agile and dynamic way, ensuring the generation of reports with sufficient detail to facilitate the understanding of exposures and the decision-making process. To measure exposure, Grupo Santander follows two methodologies: mark-to-market (MtM or replacement value in derivatives) plus potential future exposure (add- on), and Monte Carlo simulation for calculating exposure for some countries and products. Additionally, Santander calculates capital at risk or unexpected loss, which is the loss that constitutes economic capital net of guarantees and recoveries, after deducting the expected loss. 199 After market close, Grupo Santander recalculates exposures by adjusting all operations to their new time horizon, adapting the potential future exposure and applying mitigation measures (netting, collateral, among others), so that exposures can be controlled daily against the limits approved by senior management within the risk appetite. Santander performs risk control through a real-time integrated system, which allows the Group to know at any moment the available exposure limit with any counterparty, in any product and term, and across all subsidiaries. Grupo Santander runs monthly stress tests on derivatives portfolios and securities financing transactions (SFT). These exercises form an integral part of the counterparty credit risk management process. They allow us to assess the resilience of exposures under adverse scenarios and support appropriate identification, measurement and control of the associated risks. 4.2. Concentration risk Concentration risk control is an essential aspect of Grupo and Banco Santander's management. The Group and the Bank continuously monitors the level of concentration in its credit risk portfolios applying various criteria: geographic areas and countries, economic sectors and groups of customers. The board, via the risk appetite framework, determines the maximum levels of concentration. In line with these maximum levels and limits, the executive risk committee establishes the risk policies and reviews the appropriate exposure levels for the effective management of the degree of concentration in Santander’s credit risk portfolios. Grupo and Banco Santander must adhere to the regulation on large risks contained in the CRR, according to which the exposure contracted by an entity with a customer or group of associated customers will be considered a large exposure when its value is equal to or greater than 10% of eligible capital. In addition, in order to limit large exposures, no entity may assume exposures exceeding 25% of its eligible capital with a single customer or group of associated customers, having factored in the credit risk mitigation effect contained in the regulation. At the end of December, after applying risk mitigation techniques, no group reaches the above-mentioned thresholds. Regulatory credit exposure with the 20 largest groups within the scope of large risks represented 5.3% of the outstanding credit risk with customers (lending to customers plus off-balance sheet risks) as of December 2025. While the regulatory credit exposure with the 40 largest groups represents 8.4% of the credit risk. The detail, by activity and geographical area of the Group's risk concentration at 31 December 2025 is as follows: 200 | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | EUR million | | | | | | | | 2025 A | | | | | | | Total | Spain | Other EU countries | America | Rest of the world | | Central banks and Credit institutions | 326,316 | 61,256 | 71,853 | 119,532 | 73,675 | | Public sector | 267,765 | 82,131 | 62,620 | 109,109 | 13,905 | | Of which: | | | | | | | Central government | 239,153 | 66,479 | 57,468 | 101,768 | 13,438 | | Other central government | 28,612 | 15,652 | 5,152 | 7,341 | 467 | | Other financial institutions (financial business activity) | 207,044 | 16,301 | 50,819 | 101,600 | 38,324 | | Non-financial companies and individual entrepreneurs (non- financial business activity) (broken down by purpose) | 447,496 | 103,836 | 94,760 | 188,078 | 60,822 | | Of which: | | | | | | | Construction and property development | 20,322 | 4,130 | 2,090 | 9,396 | 4,706 | | Civil engineering construction | 5,128 | 1,835 | 1,740 | 1,468 | 85 | | Large companies | 291,515 | 53,841 | 63,635 | 127,003 | 47,036 | | SMEs and individual entrepreneurs | 130,531 | 44,030 | 27,295 | 50,211 | 8,995 | | Households – other (broken down by purpose) | 543,928 | 88,602 | 98,262 | 142,560 | 214,504 | | Of which: | | | | | | | Residential | 333,552 | 61,818 | 27,030 | 46,605 | 198,099 | | Consumer loans | 192,746 | 19,784 | 69,670 | 87,491 | 15,801 | | Other purposes | 17,630 | 7,000 | 1,562 | 8,464 | 604 | | Total | 1,792,549 | 352,126 | 378,314 | 660,879 | 401,230 | A. For the purposes of this table, the definition of risk includes the following items in the public balance sheet: 'Loans and advances to credit institutions', 'Loans and advances to Central Banks', 'Loans and advances to Customers', 'Debt securities', 'Equity Instruments', 'Trading Derivatives', 'Hedging derivatives', 'Investments and financial guarantees given'. 201 The same information in the previous table referring to Banco Santander, S.A. it is presented below: | | | | | | | | --- | --- | --- | --- | --- | --- | | | | | | | | | EUR million | | | | | | | | 2025 A | | | | | | | Total | Spain | Other EU countries | America | Rest of the world | | Central banks and Credit institutions | 217,775 | 78,878 | 62,473 | 45,966 | 30,458 | | Public sector | 130,438 | 63,072 | 44,153 | 15,173 | 8,040 | | Of which: | | | | | | | Central government | 110,899 | 47,550 | 40,218 | 15,150 | 7,981 | | Other central government | 19,539 | 15,522 | 3,935 | 23 | 59 | | Other financial institutions (financial business activity) | 243,923 | 57,011 | 53,837 | 68,533 | 64,542 | | Non-financial companies and individual entrepreneurs (Non- financial business activity) (broken down by purpose) | 212,496 | 92,836 | 41,938 | 40,760 | 36,962 | | Of which: | | | | | | | Construction and property development | 3,823 | 3,055 | 749 | 18 | 1 | | Civil engineering construction | 3,433 | 1,835 | 909 | 604 | 85 | | Rest of purposes | 205,240 | 87,946 | 40,280 | 40,138 | 36,876 | | Large companies | 167,555 | 50,996 | 40,185 | 39,560 | 36,814 | | SMEs and individual entrepreneurs | 37,685 | 36,950 | 95 | 578 | 62 | | Households – other (broken down by purpose) | 78,720 | 76,883 | 491 | 710 | 636 | | Of which: | | | | | | | Residential | 60,863 | 59,377 | 426 | 485 | 575 | | Consumer loans | 10,795 | 10,722 | 8 | 29 | 36 | | Other purposes | 7,062 | 6,784 | 57 | 196 | 25 | | Total | 883,352 | 368,680 | 202,892 | 171,142 | 140,638 | A. For the purposes of this table, the definition of risk includes the following items in the public balance sheet: 'Loans and advances to credit institutions', 'Loans and advances to Central Banks', 'Loans and advances to Customers', 'Debt securities', 'Equity Instruments', 'Trading Derivatives', 'Hedging derivatives', 'Investments and financial guarantees given'. 4.3 Sectors identification and management Grupo and Banco Santander conduct a quarterly review of exposure to customers operating in sectors that could be more affected by macroeconomic conditions (energy consumption, commodity prices, and key macroeconomic variables). This monitoring is complemented by the use of internal tools that allow projecting the behaviour and evolution of clients in each sector under different macroeconomic scenarios. Additionally, this process considers, among other things, the following information at the sector level: • Market information: Industries’ stock market performance. • Analysts’ EBITDA forecasts for the coming years. • Internal information: Changes in credit exposure, defaults (in different timelines) and stagings. • Our industry experts’ opinion, based on specific details about our exposures and our relationships with customers. The Group, and therefore the Bank, continued to strengthen our ability to analyse potential losses at the highest possible level of granularity by enhancing the methodology and sector projection tools, based on the resilience of each company’s financial statements under different macroeconomic scenarios. 4.4. Sovereign risk and exposure to other public sector entities Sovereign risk arises from central bank transactions (including regulatory cash reserves), government bonds issued by the Treasury or equivalent bodies (public debt portfolio), and transactions with public-sector entities funded exclusively by a state’s budget revenues and with no commercial activity. 202 Grupo and Banco Santander's The standard historically applied by Grupo Santander differs from the one used by the EBA in its periodic stress tests. The most significant differences are that the EBA’s approach does not include deposits with central banks, exposures held in insurance companies, or indirect exposures through guarantees or other instruments. By contrast, it does include public administrations more broadly (including regional and local authorities), and not only those of the central government. Grupo and Banco Santander continue to track and manage transactions with sovereign risk based on available information, such as reports by rating agencies and international organizations. Grupo and Banco Santander monitor each country where the Group and the Bank have cross-border1 and sovereign risk. The Group and the Bank analyse events that could affect the country’s political or institutional stability and assign its government or central bank a credit rating. This helps us set limits for transactions with sovereign risk. Over recent years, total sovereign risk exposure has remained in line with regulatory requirements and the strategy defined for managing this portfolio. Changes in exposure across countries reflect the liquidity management strategy and hedging of interest rate and foreign exchange risk. International exposure is diversified across countries with different macroeconomic expectations and, consequently, different growth, interest rate and exchange rate scenarios.. At the end of December 2025, Grupo and Banco Santander´s local sovereign exposure, in currencies other than the official currency of the country of issuance, is not significant (EUR 4,908 million, 1.2% of total sovereign risk) according to our management criteria. Furthermore, exposure to non-local sovereign issuers involving cross-border risk is even less significant2EUR 17,002 million, 4.0% of total sovereign risk). Sovereign exposure in Latin America is mostly in local currency, and is recognised in the local accounts and concentrated in short- term maturities. 1  Risks with domestic public or private borrowers in foreign currency and originated outside the country. 2 Countries that are not considered low risk by Banco de España. Our investment strategy for sovereign risk considers country’s credit quality to set the maximum exposure limits. The following table shows the percentage of exposure by ratingA: | | | | | --- | --- | --- | | | | | | | 2025 | 2024 | | AAA | 18% | 21% | | AA | 17% | 18% | | A | 43% | 41% | | BBB | 14% | 11% | | Less than BBB | 9% | 9% | A.    Internal ratings are applied. 203 Sovereign exposure at the end of December 2025 is shown in the table below (data in million euros): | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | 2025 | | | | | | 2024 | | | Portfolio | | | | | | | | Country | Financial assets held for trading and Financial assets designated as FV with changes in results | Financial assets at fair value through other comprehensive income | Financial assets at amortised cost | Non-trading financial assets mandatorillly at fair value through profit or loss | Total net direct exposure | | Total net direct exposure | | Spain | 3,852 | 112 | 58,044 | — | 62,008 | | 56,293 | | Portugal | (659) | 1,199 | 6,767 | — | 7,307 | | 7,652 | | Italy | 2,875 | 440 | 12,557 | — | 15,872 | | 12,915 | | Greece | — | — | — | — | — | | — | | Ireland | (38) | — | — | — | (38) | | — | | Rest Eurozone | 3,684 | 254 | 10,443 | — | 14,381 | | 6,212 | | UK | 907 | 1,001 | 5,687 | — | 7,595 | | 8,772 | | Poland | 1,141 | 6,339 | 13,333 | — | 20,813 | | 14,286 | | Rest of Europe | 8 | — | 526 | — | 534 | | 954 | | US | 4,783 | 4,320 | 15,943 | — | 25,046 | | 24,926 | | Brazil | 8,089 | 9,533 | 8,543 | — | 26,165 | | 26,641 | | Mexico | 10,663 | 7,652 | 7,599 | — | 25,914 | | 21,642 | | Chile | 676 | 2,666 | 5,254 | — | 8,596 | | 6,900 | | Rest of America | 2,593 | 1,654 | 2,151 | — | 6,398 | | 4,431 | | Rest of the World | 211 | 17 | 4,128 | — | 4,356 | | 7,003 | | TOTAL | 38,785 | 35,187 | 150,975 | — | 224,947 | | 198,627 | 204 5. Forborne loan portfolio The customer debt redirection policy incorporates the regulatory requirements of the EBA guidelines on the management of non-performing exposures, refinancing and restructuring. This policy acts as a reference for the transposition in our subsidiaries and shares the applicable supervisory expectations. This policy also sets down rigorous criteria for evaluating, classifying and monitoring forbearances to support the strictest possible care and diligence in recovering due amounts. Thus, it dictates that Grupo and Banco  Santander must adapt payment obligations to customers' current circumstances. Our forbearance policy also defines classification criteria to support Grupo and Banco Santander recognize risks appropriately. Forbearances must remain classified as non-performing or in watch-list for a prudential period for reasonable certainty of repayment. In no case will repayments be used to delay the immediate recognition of losses or so that their use distorts the timely recognition of the risk of non-payment. At 31 December 2025, forbearance stock fell again and stood at EUR 25,235 million, due to the good payment behaviour in the main geographies. In terms of credit quality, 53% of the loans is classified as credit impaired, with a coverage ratio of 41%. In addition, 47% of the portfolio is classified as performing. The following terms are used with the meanings specified below: • Refinancing transaction: transaction that is granted or used, for reasons relating to current or foreseeable financial difficulties of the borrower, to repay one or more of the transactions granted to it, or through which the payments on such transactions are brought fully or partially up to date, in order to enable the borrowers of the cancelled or refinanced transactions to repay their debt (principal and interest) because they are unable, or might foreseeably become unable, to comply with the conditions there of in due time and form. • Restructured transaction: transaction with respect to which, for economic or legal reasons relating to current or foreseeable financial difficulties of the borrower, the financial terms and conditions are modified in order to facilitate the payment of the debt (principal and interest) because the borrower is unable, or might foreseeably become unable, to comply with the aforementioned terms and conditions in due time and form, even if such modification is envisaged in the agreement. 205 | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | Current refinancing and restructuring balances | | | | | | | | | | | | | | | | Amounts in EUR million, except number of transactions that are in units | | | | | | | | | | | | | | | | | 2025 | | | | | | | | | | | | | | | | Total | | | | | | | Of which, non-performing/Doubtful | | | | | | | | | Without real guarantee | | With real guarantee | | | | | Without real guarantee | | With real guarantee | | | | | | | | | | | Maximum amount of the actual collateral that can be considered | | Impairment of accumulated value or accumulated losses in fair value due to credit risk | | | | | Maximum amount of the actual collateral that can be considered | | Impairment of accumulated value or accumulated losses in fair value due to credit risk | | | Number of transactions | Gross amount | Number of transactions | Gross amount | Real estate guarantee | Rest of real guarantees | Number of transactions | Gross amount | Number of transactions | Gross amount | Real estate guarantee | Rest of real guarantees | | Credit entities | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | Public sector | 14 | 6 | 9 | 7 | 5 | — | 8 | 5 | 2 | 9 | 7 | 5 | — | 8 | | Other financial institutions and: individual shareholder | 933 | 94 | 462 | 182 | 117 | 15 | 94 | 579 | 50 | 259 | 75 | 22 | 11 | 89 | | Non-financial institutions and individual shareholder | 489,192 | 5,095 | 42,700 | 5,596 | 3,271 | 923 | 2,713 | 296,008 | 2,901 | 26,767 | 2,585 | 1,166 | 420 | 2,420 | | Of which financing for constructions and property development | 249 | 21 | 523 | 739 | 695 | 4 | 75 | 167 | 3 | 264 | 156 | 115 | 4 | 50 | | Other warehouses | 3,000,071 | 4,556 | 515,253 | 9,699 | 3,752 | 3,777 | 3,665 | 1,620,343 | 2,401 | 296,470 | 5,313 | 1,730 | 2,232 | 2,991 | | Total | 3,490,210 | 9,751 | 558,424 | 15,484 | 7,145 | 4,715 | 6,480 | 1,916,935 | 5,354 | 323,505 | 7,980 | 2,923 | 2,663 | 5,508 | | Financing classified as non-current assets and disposable groups of items that have been classified as held for sale | 13,499 | 261 | 4,630 | 566 | 406 | 14 | 171 | 6,901 | 120 | 1,720 | 235 | 110 | 5 | 145 | 206 The same information in the previous table referring to Banco Santander, S.A. it is presented below: | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | Current refinancing and restructuring balances | | | | | | | | | | | | | | | | Amounts in EUR million, except number of transactions that are in units | | | | | | | | | | | | | | | | | 2025 | | | | | | | | | | | | | | | | Total | | | | | | | Of which, non-performing/Doubtful | | | | | | | | | Without real guarantee | | With real guarantee | | | | | Without real guarantee | | With real guarantee | | | | | | | | | | | Maximum amount of the actual collateral that can be considered | | Impairment of accumulated value or accumulated losses in fair value due to credit risk | | | | | Maximum amount of the actual collateral that can be considered | | Impairment of accumulated value or accumulated losses in fair value due to credit risk | | | Number of transactions | Gross amount | Number of transactions | Gross amount | Real estate guarantee | Rest of real guarantees | Number of transactions | Gross amount | Number of transactions | Gross amount | Real estate guarantee | Rest of real guarantees | | Credit entities | — | — | — | — | — | — | — | — | — | — | — | — | — | — | | Public sector | 9 | 3 | 1 | 1 | 1 | — | — | 3 | — | 1 | 1 | 1 | — | — | | Other financial companies and sole proprietorships (financial business activity) | 122 | 52 | 53 | 166 | 114 | 11 | (52) | 55 | 10 | 31 | 62 | 20 | 10 | (47) | | Non-financial corporations and sole proprietorships (non-financial business activity) | 19,801 | 1,882 | 3,893 | 1,594 | 783 | 186 | (791) | 11,790 | 925 | 2,633 | 965 | 414 | 97 | (731) | | Of which, financing for construction and real estate development (including land) | 3 | — | 72 | 41 | 38 | 3 | (10) | 3 | — | 40 | 25 | 21 | 3 | (9) | | Other warehouses | 11,930 | 151 | 10,917 | 649 | 594 | 3 | (194) | 3,382 | 42 | 5,971 | 368 | 328 | 2 | (157) | | Total | 31,862 | 2,087 | 14,864 | 2,410 | 1,491 | 199 | (1,037) | 15,230 | 977 | 8,636 | 1,397 | 763 | 108 | (935) | | Financing classified as non-current assets and disposable groups of items that have been classified as held for sale | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 207 In 2025, the amortised cost of financial assets owned by the Bank whose contractual cash flows were modified during the year when the corresponding loss adjustment was valued at an amount equal to the expected credit losses over the life of the asset amounted to EUR 178 million (EUR 291 million in 2024), without these modifications having a material impact on the income statement. Also, during 2025, the total of financial assets owned by the Bank that have been modified since the initial recognition, and whose correction for expected loss has gone from being valued during the entire life of the asset to the following twelve months, amounts to EUR 966 million (EUR 1,746 million in 2024). The transactions presented in the foregoing tables were classified at 31 December 2025 by nature, as follows: • Credit impaired: Operations that rest on an inadequate payment scheme will be classified within the non-performing category, regardless they include contract clauses that delay the repayment of the operation throughout regular payments or present amounts written off the balance sheet for being considered irrecoverable. • Performing: Operations not classifiable as non- performing will be classified within this category. Operations will also be classified as normal if they have been reclassified from the non-performing category for complying with the specific criteria detailed below: a A period of a year must have passed from the refinancing or restructuring date. b The owner must have paid for the accrued amounts of the capital and interests, thus reducing the rearranged capital amount, from the date when the restructuring of refinancing operation was formalised. c The owner must not have any other operation with amounts past due by more than 90 consecutive days of material delay on the date of the reclassification to the normal risk category. Attending to the credit attention 47% of the forborne loan transactions are classified as other than non- performing. Particularly noteworthy are the level of existing guarantees ( 47% of transactions are secured by collateral) and the coverage provided by specific allowances (representing 26% of the total forborne loan portfolio and 41% of the non-performing portfolio). c) Market, structural and liquidity risk 1. Activities subject to market risk and types of market risk Activities exposed to market risk encompass transactions where risk is assumed as a consequence of potential changes in interest rates, inflation rates, exchange rates, stock prices, credit spreads, commodity prices, volatility and other market factors; the liquidity risk from our products and markets, and the balance-sheet liquidity risk. Therefore, they include trading risks and structural risks. • Interest rate risk arises from movements in interest rates that reduce the value of a financial instrument, a portfolio or the Group or the Bank . It can affect loans, deposits, debt securities, most assets and liabilities held for trading, and derivatives. • Inflation rate risk arises from movements in inflation that can reduce the value of a financial instrument, a portfolio or the Group or the Bank. It can affect loans, debt securities and derivatives (e.g. inflation swaps and futures) whose profitability is linked to inflation. • Exchange rate risk is the possibility of loss because the currency of a long or open position will depreciate against the base currency. It can affect debt in subsidiaries whose local currency is not the euro, as well as loans denominated in a foreign currency. • Equity risk is the possibility of loss from open positions in securities if their market price or expected future dividends fall. It affects shares, stock market indices, convertible bonds and derivatives with shares as the underlying asset (put, call, equity swaps, etc.). • Credit spread risk is the possibility of loss from open positions in fixed-income securities or credit derivatives if their yield curve, or the recovery rate of their issuer or type change. A spread is the yield difference between financial instruments against a benchmark (e.g. the internal rate of return (IRR) of government bonds and interbank interest rates). • Commodity price risk is the possibility of loss from movements in commodity prices. Grupo and Banco Santander's commodity exposure is minor and stems mainly from commodity derivatives. • Volatility risk is the possibility of loss caused by movements in interest rates, exchange rates, the stock market, credit spreads and other risk factors affecting portfolio value. It is inherent to all financial instruments whose value considers volatility (especially options contracts). 208 Derivative contracts (such as options, futures, forwards and swaps) can mitigate market risks partially or fully. Additionally, other more complex coverage market risks are considered, such as correlation risk, market liquidity risk, prepayment or cancellation risk and subscription risk . • Correlation risk is the possibility of loss due to an adverse correlation between risk variables that affect portfolio value. Risk variables could be the same (e.g. two FX rates) or different (e.g. an interest rate and a commodity price). • Market liquidity risk is the possibility that fewer market makers or institutional investors, a large number of transactions, market instability and other factors will cause the Group or a subsidiary to exit a position at a worse market price or trade cost. Exposure to different products and currencies can also increase this risk. • Pre-payment or cancellation risk originates when mortgages, deposits and other on-balance-sheet instruments give holders the option to buy or sell them, thus altering future cash flows. Potential mismatches on the balance sheet pose a risk since cash flows may have to be reinvested at an interest rate that is potentially lower (assets) or higher (liabilities). • Underwriting risk is the possibility that the bank will have to hold part of a debt issue it has underwritten or agreed to place if it cannot all be placed among potential buyers. Balance sheet liquidity risk (unlike market liquidity risk) is the possibility of loss caused by forced disposal of assets or cash flow imbalance if the bank meets its payment obligations late or at excessive cost. It can cause losses by forced asset sales or impacts on margins due to the mismatch between expected cash inflows and outflows. Pension and actuarial risks (explained at the end of this section) also depend on market variables. Grupo and Banco Santander aim to comply with the Basel Committee’s Fundamental Review of the Trading Book (FRTB) and the EBA’s Guidelines on the management of interest rate risk arising from non- trading book activities. The purpose of several projects Grupo Santander runs is to provide risk control managers and teams with the best market risk management tools under the right governance framework for the models Grupo Santander uses for metric reporting; and to comply with regulation on the risks mentioned above. 2. Trading market risk management Setting market risk limits in a dynamic process according to the risk appetite in the annual limits plan prepared by senior management and extended to all subsidiaries. The standard methodology for risk management and control in trading, measures the maximum expected loss with a specific level of confidence and time frame. The standard for historical simulation is a confidence level of 99% over one day. Grupo and Banco Santander apply statistical adjustments efficiently to incorporate recent developments affecting our levels of risk. Our time frame is two years or at least 520 days from the reference date of the VaR calculation. The balance sheet items in the Group’s consolidated position that are subject to market risk are shown below, distinguishing those positions for which the main risk metric is VaR from those for which risk monitoring is carried out using other metrics: 209 | | | | | | | --- | --- | --- | --- | --- | | | | | | | | EUR million | | | | | | | | Main market risk metric | | | | | Balance sheet amount | VaR | Other | Main risk factor for 'Other' balance | | Assets subject to market risk | | | | | | Cash, cash balances at central banks and other deposits on demand | 152,281 | | 152,281 | Interest rate | | Financial assets held for trading | 252,318 | 252,318 | | | | Non-trading financial assets mandatorily at fair value through profit or loss | 7,761 | 5,815 | 1,946 | Interest rate, spread | | Financial assets designated at fair value through profit or loss | 8,046 | — | 8,046 | Interest rate, spread | | Financial assets designated at fair value through other comprehensive income | 74,612 | 2,281 | 72,331 | Interest rate, spread | | Financial assets at amortized cost | 1,202,689 | | 1,202,689 | Interest rate, spread | | Hedging derivatives | 3,931 | | 3,931 | Interest rate, exchange rate | | Changes in the fair value of hedged items in portfolio hedges of interest risk | 50 | | 50 | Interest rate | | Other assets | 165,827 | | | | | Total assets | 1,867,515 | | | | | | | | | | | Liabilities subject to market risk | | | | | | Financial liabilities held for trading | 171,546 | 171,546 | | | | Financial liabilities designated at fair value through profit or loss | 42,148 | — | 42,148 | Interest rate, spread | | Financial liabilities at amortized cost | 1,421,184 | | 1,421,184 | Interest rate, spread | | Hedging derivatives | 4,248 | | 4,248 | Interest rate, exchange rate | | Changes in the fair value of hedged items in portfolio hedges of interest rate risk | 49 | | 49 | Interest rate | | Other liabilities | 115,592 | | | | | Total liabilities | 1,754,767 | | | | | Equity | 112,748 | | | | 210 The following table displays the latest and average VaR values at 99% by risk factor over the last three years. It also shows the minimum and maximum VaR values in 2025 and 97.5% ES at the end of December 2025: | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | VaR statistics and expected shortfall by risk factorA | | | | | | | | | | EUR million. VaR at 99% and ES at 97.5% with one day time horizon | | | | | | | | | | | 2025 | | | | | | 2024 | | | | VaR (99%) | | | | ES (97.5%) | | VaR | | | | Min | Average | Max | Latest | Latest | | Average | Latest | | Total Trading | 9.6 | 17.6 | 29.2 | 18.7 | 16.9 | | 17.1 | 18.7 | | Diversification effect | (10.7) | (21.0) | (59.3) | (17.7) | (18.9) | | (19.8) | (27.3) | | Interest rate | 11.2 | 16.5 | 23.0 | 15.3 | 16.4 | | 17.0 | 20.2 | | Equities | 2.4 | 6.5 | 10.8 | 8.1 | 7.5 | | 6.0 | 9.5 | | Exchange rate | 3.3 | 7.4 | 37.5 | 6.3 | 5.8 | | 5.8 | 5.9 | | Credit spread | 3.2 | 5.7 | 10.2 | 4.8 | 4.8 | | 4.9 | 5.3 | | Commodities | 0.2 | 2.5 | 7.0 | 1.9 | 1.3 | | 3.2 | 5.1 | | | | | | | | | | | | Total Europe | 9.6 | 15.0 | 28.2 | 13.2 | 13.2 | | 12.7 | 16.0 | | Diversification effect | (8.9) | (18.0) | (32.4) | (15.9) | (17.8) | | (15.4) | (18.4) | | Interest rate | 9.0 | 13.3 | 19.2 | 11.4 | 13.3 | | 12.0 | 14.4 | | Equities | 2.7 | 6.4 | 11.0 | 7.4 | 7.1 | | 5.9 | 8.8 | | Exchange rate | 3.7 | 7.3 | 19.7 | 5.3 | 5.7 | | 5.1 | 5.8 | | Credit spread | 3.0 | 5.8 | 10.4 | 4.9 | 4.8 | | 4.9 | 5.3 | | Commodities | 0.1 | 0.2 | 0.3 | 0.1 | 0.1 | | 0.2 | 0.1 | | | | | | | | | | | | Total North America | 3.7 | 5.8 | 8.9 | 5.5 | 5.3 | | 6.9 | 6.4 | | Diversification effect | (0.4) | (1.7) | (6.3) | (1.6) | (1.8) | | (1.1) | (0.8) | | Interest rate | 3.8 | 5.9 | 8.8 | 4.8 | 4.9 | | 6.9 | 6.6 | | Equities | 0.1 | 0.8 | 3.2 | 1.0 | 1.0 | | 0.2 | 0.1 | | Exchange rate | 0.2 | 0.8 | 3.2 | 1.3 | 1.2 | | 0.9 | 0.5 | | | | | | | | | | | | Total South America | 3.2 | 7.6 | 16.5 | 5.8 | 5.9 | | 9.0 | 9.5 | | Diversification effect | (0.3) | (5.2) | (28.7) | (8.7) | (6.2) | | (6.9) | (5.5) | | Interest rate | 2.8 | 7.2 | 18.1 | 4.0 | 3.8 | | 8.8 | 6.5 | | Equities | 0.2 | 1.5 | 7.2 | 2.2 | 2.3 | | 1.2 | 2.1 | | Exchange rate | 0.4 | 1.6 | 12.9 | 6.5 | 4.7 | | 2.7 | 1.3 | | Commodities | 0.1 | 2.5 | 7.0 | 1.8 | 1.3 | | 3.2 | 5.1 | A. In South and North America, VaR levels of credit spreads and commodities are not shown separately due to their low or null materiality. VaR at the end of December (EUR 18.7 million was only EUR 0.03 million compared to the end of 2024, reflecting sustained high market volatility, ongoing geopolitical risk and concerns over inflation trends, which could pick up again as a result of new US trade policies. By risk factor, average VaR (EUR 17.6 million was hig her across several risk factors, especially for foreign exchange, with high market volatility for certain currencies such as the US dollar and the Argentine peso. Temporary spikes in VaR across the different factors generally reflect isolated increases in market price volatility rather than significant changes in positions. By region, average VaR was higher than the 2024 average in Europe, mainly due to interest rate and foreign exchange risk factors, while it was lower in North America and South America. 211 Backtesting Actual losses can differ from predicted losses because of the VaR’s limitations. The Bank and the Group measures the accuracy of the VaR calculation model to make sure it is reliable. The most important tests Grupo Santander and Banco run involve backtesting: • In hypothetical P&L backtesting and for the total portfolio, two exceptions (a daily loss higher than VaR or a daily gain higher than VaE) were observed in 2025 for VaR at a 99% confidence level, on 9 and 11 April, as a result of high market volatility, mainly driven by uncertainty over the potential impact of new US trade policies • The exceptions observed in the past year are consistent with the assumptions of the VaR calculation model. 3. Structural balance sheet risks 3.1. Main aggregates and variations Consistent with previous years, the market risk profile of Grupo and Banco Santander’s balance sheet remained moderate in 2025 in terms of asset, shareholders’ equity and NII volumes, each subsidiaries. Each subsidiary’s finance division manages interest rate risk from commercial banking and is responsible for handling structural risk from interest rate fluctuations. To measure interest rate risk, Grupo Santander uses statistical models based on strategies to mitigate structural risk with interest-rate instruments (such as bonds and derivatives) to keep risk profile within risk appetite. The NII and EVE sensitivities below are based on scenarios of parallel interest rate movements from -100 to +100 basis points. Structural VaR With such a homogeneous metric as VaR, Grupo Santander can fully monitor market risk in the banking book (excluding CIB trading activity). The Bank differentiates fixed income based on interest rates and credit spreads in ALCO portfolios, FX rates and shares. In general, the structural VaR of Grupo and Banco Santander total assets and equity is minor. | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | Structural VaR | | | | | | | | | EUR million. Structural VaR 99% with a temporary horizon of one day. | | | | | | | | | | 2025 | | | | | 2024 | | | | Minimum | Average | Maximum | | Latest | Average | Latest | | Structural VaR | 598.5 | 662.9 | 751.9 | | 690.1 | 747.7 | 687.5 | | Diversification effect | (155.9) | (258.4) | (265.6) | | (206.6) | (386.4) | (268.6) | | VaR Interest Rate A | 158.3 | 177.3 | 205.8 | | 177.6 | 412.0 | 235.2 | | VaR Exchange Rate | 486.0 | 597.7 | 648.7 | | 572.4 | 571.7 | 594.4 | | VaR Equities | 110.1 | 146.3 | 163.0 | | 146.7 | 150.4 | 126.5 | A. Includes credit spread VaR on ALCO portfolios. Structural interest rate risk: – Europe At the end of December, net interest income (NII) for our main balance sheets showed positive sensitivity to interest rate increases. As of the same date, the economic value of equity (EVE) showed negative sensitivity to interest rate increases. At the end of December 2025, under the scenarios previously described, the most significant NII sensitivity risk was concentrated in the euro, at EUR 561 million; the pound sterling, EUR 169 million; the Polish złotyr, EUR 51 million; and the US dollar, EUR 50 million , all linked to interest rate cut risk. 212 The most significant risk to the economic value of equity was concentrated in the euro yield curve, at EUR 1,087 million; in pound sterling, at EUR 614 million; the Polish złoty, at EUR 275 million euros; and the US dollar, at EUR 104 million euros, all linked to interest rate rise risk. Exposure was moderate in relation to annual budget and capital levels in 2025. – North America At the end of December, net interest income (NII) for our North America balance sheets showed positive sensitivity to interest rate increases in the United States, while showing negative sensitivity to the same scenario in Mexico. In both cases, the economic value of equity (EVE) showed negative sensitivity to interest rate increases. Exposure was moderate in relation to annual budget and capital levels in 2025. At the end of December 2025, significant risk to NII was mainly in the US and amounted to EUR 49 million. The most significant risk to EVE was in the US and amounted to EUR 570 million. – South America EVE and NII on our main South American balance sheets are generally positioned for interest rate cuts. In 2025, exposure across all countries remained moderate in relation to the annual budget and capital levels. At the end of December, the most significant risk to NII was mainly in Brazil (EUR 57 million). Most significant risk to EVE was recorded in Brazil (EUR 257 million) and in Chile (EUR 225 million). Structural foreign currency rate risk/results hedging Grupo Santander's structural FX risk stems mainly from the income and hedging of foreign currency transactions for permanent financial investments. In the dynamic management of this risk, Grupo Santander aims to limit the impact of FX rate movements on the core capital ratio. In 2025, the hedged of the different currencies that have an impact on our core capital ratio was close to 100%. In December 2025, the largest permanent exposures (with their potential impact on equity) were, in this order, in pound sterling, US dollars, Brazilian reais, Mexican pesos, Polish zlotys and Chilean pesos. Grupo and Banco Santander use FX derivatives to hedge part of those permanent positions. The Finance division manages FX risk and hedging for the expected profits and dividends of subsidiaries whose base currency is not the euro. Structural equity risk Grupo Santander holds equity positions in its banking and trading books. They are either equity instruments or stock, depending on the share of ownership or control. At the end of December 2025, the equities and shareholdings in the banking book were diversified among Spain, China, Morocco, Poland and other countries. Most of them invest in the financial and insurance sectors. Grupo Santander has minor equity exposure to property and other sectors. Structural equity positions are exposed to market risk. The Group calculates its VaR with a set of market prices and proxies. At the end of the year 2025, VaR at a 99% confidence level over a one-day horizon was EUR 147 million (EUR 127 million in 2024). 3.2.Methodologies Structural interest rate risk The Group and the Bank measure the potential impact of interest rate movements on EVE and NII. Because changing rates may generate impacts, Grupo Santander must manage and control many subtypes of interest rate risk, such as repricing risk, curve risk, basis risk and option risk (e.g. behavioural or automatic). Interest rate risk in the balance sheet and market conditions and outlooks could necessitate certain financial measures to achieve Group and Bank’s desired risk profile (such as selling positions or setting interest rates on products markets). The metrics uses to monitor IRRBB include NII and EVE sensitivity to interest rate movements. • Net interest income sensitivity Net interest income (NII) is the difference between interest income from assets and the interest cost of liabilities in the banking book over a typical one- to three-year horizon (one year being standard in Grupo Santander). Because NII sensitivity is the difference in income between a selected scenario and the base scenario, its values can be as many as considered scenarios. It enables us to see short-term risks and supplement economic value of equity (EVE) sensitivity. • Economic value of equity sensitivity Economic value of equity (EVE) is the difference between the current value of all assets minus the current value of all liabilities in the banking book. It does not include shareholders’ equity and non-interest-bearing instruments. The sensitivity of the economic value of own funds is obtained as the difference between said economic value calculated with a selected scenario and that calculated with a base scenario. 213 Because EVE sensitivity is the difference in EVE between a selected scenario and the base scenario, it can have as many values as considered scenarios. It enables us to see long-term risks and supplement NII sensitivity. Structural exchange-rate risk/hedging of results Every day, Grupo Santander measures FX positions, VaR and P/L. Structural equity risk Grupo Santander measures equity positions, VaR and P/ L. #### 4.Liquidity risk Structural liquidity management aims to fund the Group and the Bank’s recurring activity optimising maturities and costs, while avoiding taking on undesired liquidity risks. Grupo and Banco Santander’s liquidity management is based on the following principles: • Define liquidity risk and provide detailed assessments of current and emerging material liquidity risks. • Define liquidity risk metrics, review and challenge liquidity risk appetite and limits on first line of defence proposals. • Evaluates and challenges commercial/business proposals; It provides senior management and business units with the necessary elements to understand the liquidity risk of Santander's businesses and operations. • Supervise the liquidity risk management of the first line of defence and assess the permanence of businesses within the limits of liquidity risk. • Reports on compliance with risk appetite limits and exceptions, if any, to governing bodies. • Provides a consolidated view of liquidity risk exposures and liquidity risk profile. • Confirms the existence of adequate liquidity procedures to manage the business within the limits of risk appetite. The effective application of these principles by all institutions comprising the Group required the development of a unique management framework built upon three fundamental pillars: • A solid organisational and governance model that supports the involvement of the subsidiaries’ senior management in decision-taking and its integration into the Group’s global strategy. The decision-making process for all structural risks, including liquidity and funding risk, is carried out by local Asset and Liability Committees (ALCOs) in coordination with the global ALCO, which is the body empowered by the Bank's board in accordance with the corporate Asset and Liability Management (ALM) framework. This governance model has been reinforced as it has been included within Santander's Risk Appetite Framework. This framework meets demands from regulators and market players emanating from the financial crisis to strengthen banks’ risk management and control systems. • In-depth balance sheet analysis and measurement of liquidity risk, supporting decision-taking and its control. The Group and Bank’s objective is to maintain adequate liquidity levels necessary to cover its short- and long-term needs with stable funding sources, optimising the impact of their costs on the income statement. Grupo and Banco Santander’s liquidity risk management processes are contained within a conservative risk appetite framework established in each geographic area in accordance with its commercial strategy. This risk appetite establishes the limits within which the subsidiaries and, therefore, the Bank can operate in order to achieve their strategic objectives. • Management adapted in practice to the liquidity needs of each business . Every year, based on business needs, a liquidity plan is developed which seeks to achieve: – a solid balance sheet structure, with a diversified presence in the wholesale markets; – the use of liquidity buffers and limited encumbrance of assets; – compliance with both regulatory metrics and other metrics included in each entity’s risk appetite statement. Over the course of the year, all dimensions of the plan are monitored. Grupo Santander continues to develop the ILAAP (Internal Liquidity Adequacy Assessment Process), an internal self-assessment of liquidity adequacy which must be integrated into the Group’s other risk management and strategic processes. It focuses on both quantitative and qualitative matters and is used as an input to the SREP (Supervisory Review and Evaluation Process). The ILAAP evaluates the liquidity position both in ordinary and stressed scenarios. 214 i. Liquidity risk measurement Grupo Santander uses the Basel regulatory definition and calculates a set of metrics and stress scenarios in relation to intraday liquidity risk to maintain a high level of management and control. On the one hand, the regulatory liquidity metrics (LCR, NSFR) are prepared following the regulatory criteria established in the CRR 2 and CRD IV. Regarding internal metrics, liquidity scenarios are determined using a combination of behavioral observation in actual liquidity crises occurred at other banks, regulatory assumptions and expert judgment. a) Liquidity Coverage Ratio (LCR) The liquidity coverage ratio (LCR) is a regulatory metric. Its purpose is to promote the short-term resilience of a bank’s liquidity profile and make sure it has enough high-quality liquid assets to withstand a considerable idiosyncratic or market stress scenario over 30 calendar days. b) Net Stable Funding Ratio (NSFR) The net stable funding ratio (NSFR) is a regulatory metric we use to measure long-term liquidity risk. It is the ratio of available stable funding to required stable funding. It requires banks to keep a robust balance sheet, with off- balance-sheet assets and operations financed by stable liabilities. c) Liquidity buffer The liquidity buffer is the total liquid assets a bank has to cope with cash outflows during periods of stress. The assets are free of encumbrances and can be used immediately to generate liquidity without losses or excessive discounts. The liquidity buffer is a tool for calculating most liquidity metrics. It is also a metric with defined limits for each subsidiary. d) Wholesale liquidity metric The wholesale liquidity metric measures the number of days Grupo and Banco Santander would survive if it used liquid assets to cover lost liquidity from a wholesale deposit run-off (without possible renewal) over a set time horizon. Grupo and Banco Santander also uses it as an internal short-term liquidity metric to reduce risk from dependence on wholesale funding. e) Asset Encumbrance metrics Grupo and Banco Santander calculate two metrics to measure asset encumbrance risk. On the one hand, the asset encumbrance ratio gives the proportion of encumbered assets to total assets; on the other, the structural asset encumbrance ratio gives the proportion of encumbered assets by structural funding transaction (namely long-term collateralized issues and credit transactions with central banks). f) Other additional liquidity indicators In addition to traditional tools to measure short and long-term liquidity and funding risk , Grupo and Banco Santander have a set of additional liquidity indicators to complement those and to measure other non-covered liquidity risk factors. These include concentration metrics, such as the main and the five largest funding counterparties, or the distribution of funding by maturity. In this sense, deposits do not show a tendency towards concentration, maintaining a stable structure at 31 December 2024, where approximately 75% are transactional and more than 80% of retail deposits are insured by deposit guarantee systems of the different countries. g) Liquidity scenario analysis As liquidity stress tests, Grupo and Banco Santander have five standard scenarios have been defined: i. An idiosyncratic scenario of events detrimental only to the Group and the Bank; ii. a local market scenario of events highly detrimental to a base country’s financial system or real economy; iii. a global market scenario of events highly detrimental to the global financial system; and iv. combined scenario consisting of a combination of more severe idiosyncratic and market events (local and global) occurring simultaneously and interactively. v. climate scenarios where different stress cases derived from the effects that climate change could have on the economy are collected. Grupo and Banco Santander use these stress test outcomes as tools to determine risk appetite and support business decision-making. h) Liquidity early warning indicators Early warning indicator system consists of quantitative and qualitative liquidity indicators that help predict stress situations and weaknesses in the funding and liquidity structure of Grupo, and therefore, Banco Santander entities. External indicators relate to market- based financial variables; internal indicators relate to our own performance. i) Intraday liquidity metrics Grupo and Banco Santander follow Basel regulation and calculates several metrics and stress scenarios for intraday liquidity risk to maintain a high level of control. 215 ii. Liquidity coverage ratio and net stable financing ratio The regulatory requirement for the LCR ratio has been set at 100% since 2018. Below is a breakdown of the Group's liquid assets composition according to the criteria established in the supervisory prudential information (Commission Implementing Regulation (EU) 2017/2114 of 9 November 2017) for the determination of high-quality liquid assets for the calculation of the LCR ratio (HQLA): | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | | Amount weighted applicable | Amount weighted applicable | | High-quality liquid assets-HQLAs | | | | Cash and reserves available at central banks | 150,883 | 188,745 | | Marketable assets Level 1 | 173,744 | 150,912 | | Marketable assets Level 2A | 5,726 | 4,696 | | Marketable assets Level 2B | 7,584 | 6,951 | | Total high-quality liquid assets | 337,937 | 351,304 | | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | High-quality liquid assets-HQLAs (numerator) | 301,618 | 315,524 | | Total net cash outflows (denominator) | 208,388 | 206,889 | | Cash outflows | 287,044 | 278,760 | | Cash inflows | 78,656 | 71,871 | | Consolidated LCR ratio (%) | 145% | 153% | | NSFR ratio (%) | 126% | 126% | Since 2024, the calculation of the consolidated LCR ratio has been updated to comply with a series of requirements regarding asset transferability restrictions in third countries. This new consolidated ratio includes an adjustment whereby any excess liquidity above 100% of LCR outflows, which is subject to transferability restrictions (legal or operational) in third countries, is not taken into account. This applies even if the surplus liquidity can be used to cover additional outflows within the country itself, which is not subject to any restrictions. The total high-quality liquid assets differ from the high- quality liquid assets (HQLAs) considered as the numerator within the consolidated LCR ratio, due to the aforementioned adjustment. In addition, since 2024, we have been calculating a Group LCR ratio using an internal methodology that determines the minimum common coverage percentage simultaneously across all the Group's markets and considers all existing restrictions on liquidity transfers in third countries. This methodology reflects the Group's resilience to liquidity risk more accurately and the internal ratio presents a level that is consistent with what would be achieved by applying the criteria followed until mid-2024, which did not include restrictions on liquidity transfers between subsidiaries. Regarding the net stable funding ratio (NSFR), its definition was approved by the Basel Committee in October 2014. The transposition of this requirement into European regulation took place in June 2019 with the publication in the Official Journal of the European Union of Regulation (EU) 2019/876 of the European Parliament and of the Council of 20 May 2019. The Regulation establishes that entities must have a net stable funding ratio, as defined in the Regulation, above 100% from June 2021. As for the funding structure, given the inherently commercial nature of the Group's balance sheet, the loan portfolio is mainly financed by customer deposits. In note 22, 'Debt securities,' the composition of these liabilities is presented based on their nature and classification, the movements and maturity profile of the debt securities issued by the Group, reflecting the strategy of diversification by products, markets, issuers, and terms followed by the Group in its approach to wholesale markets. iii.Asset encumbrance Finally, the moderate use of assets by Grupo Santander as collateral in the sources of structural financing of the balance sheet should be highlighted. In accordance with the guidelines established by the European Banking Authority (EBA) in 2014 on committed and uncommitted assets, the concept of assets committed in financing transactions (asset encumbrance) includes both on-balance sheet assets provided as collateral in transactions to obtain liquidity and off-balance sheet assets that have been received and reused for similar purposes, as well as other assets associated with liabilities for reasons other than financing. 216 The residual maturities of the liabilities associated with the assets and guarantees received and committed are presented below, as of 31 of December of 2025 (EUR billion): | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Residual maturities of the liabilities | Unmatured | <=1month | >1 month <=3 months | >3 months <=12 months | >1 year <=2 years | >2 years <=3 years | 3 years <=5 years | 5 years <=10 years | >10 years | Total | | Committed assets | 24.2 | 50.7 | 14.1 | 38.4 | 38.8 | 29.5 | 37.7 | 36.3 | 36.6 | 306.4 | | Guarantees received committed | 2.2 | 85.2 | 28.2 | 61.8 | 4.0 | 0.8 | 1.9 | 1.1 | — | 185.2 | The reported Group information as required by the EBA at 2025 year-end is as follows: | | | | | | | --- | --- | --- | --- | --- | | | | | | | | On-balance-sheet encumbered assets | | | | | | EUR billion | | | | | | | Carrying amount of encumbered assets | Fair value of encumbered assets | Carrying amount of unencumbered assets | Fair value of unencumbered assets | | Loans and advances | 152.5 | | 1,149.4 | | | Equity instruments | 11.4 | 11.4 | 18.7 | — | | Debt securities | 117.9 | 118.5 | 182.2 | 180.7 | | Other assets | 23.1 | | 212.4 | | | Total assets | 304.9 | | 1,562.7 | | | | | | | --- | --- | --- | | | | | | Encumbrance of collateral received | | | | EUR billion | | | | | Fair value of encumbered collateral received or own debt securities issued | Fair value of collateral received or own debt securities issued available for encumbrance | | Collateral received | 185.2 | 70.3 | | Loans and advances | 0.5 | — | | Equity instruments | 12.2 | 7.1 | | Debt securities | 172.5 | 63.1 | | Other collateral received | — | 0.1 | | Own debt securities issued other than own covered bonds or ABSs | 1.4 | 1.1 | | | | | | --- | --- | --- | | | | | | Encumbered assets and collateral received and matching liabilities | | | | EUR billion | | | | | Matching liabilities, contingent liabilities or securities lent | Assets, collateral received and own debt securities issued other than covered bonds and ABSs encumbered | | Total sources of encumbrance (carrying amount) | 472.0 | 491.5 | On-balance-sheet encumbered assets amounted to EUR304,923 million, of which 50% are loans (mortgage loans, corporate loans, etc.). Guarantees received committed amounted to EUR 185,160 million, relating mostly to debt securities received as security in asset purchase transactions and re-used. Taken together, these two categories represent a total of EUR 491,519 million of encumbered assets, which give rise to EUR 472,045 million matching liabilities. As of December 2025, total asset encumbrance in funding operations represented 23.10% of the Group’s extended balance sheet under EBA criteria (total assets plus guarantees received: EUR 2,122,932 million), similar to December 2024. #### d) Capital risk The second line of defence can independently challenge business and first-line activities by: • Supervising capital planning and adequacy exercises through a review of the main components affecting the capital ratios. • Identifying key metrics to calculate the Group’s regulatory capital, setting tolerance levels and analysing significant variations, as well as single transactions with impact on capital. • Reviewing and challenging the execution of capital actions proposed in line with capital planning and risk appetite. 217 Grupo Santander commands a sound solvency position, above the levels required by regulators and by the European Central bank. #### Regulatory capital At 31 December 2025, at a consolidated level, the Group must maintain a minimum capital ratio of 9.84% of CET1 ( 4.50% being the requirement for Pillar I, 0.98% being the requirement for Pillar 2R (requirement), 2.50% being the requirement for capital conservation buffer, 1.25% being the requirement for global systemically entity (D- SIB), 0.55% being the requirement for anti-cyclical capital buffer) and a systemic risk requirement of 0.05% . Grupo Santander must also maintain a minimum capital ratio of 11.66% of tier 1 and a minimum total ratio of 14.10% . In 2025, the solvency target set was achieved. Santander’s CET1 ratio stood at 13.46%1 at t he close of the year, demonstrating its organic capacity to generate capital. The key regulatory capital figures are indicated below: | | | | | --- | --- | --- | | | | | | Reconciliation of accounting capital with regulatory capital | | | | EUR million | | | | | 2025 | 2024 | | Subscribed capital | 7,345 | 7,576 | | Share premium account | 36,792 | 40,079 | | Reserves | 84,700 | 76,568 | | Treasury shares | (96) | (68) | | Attributable profit | 14,101 | 12,574 | | Approved dividend | (1,698) | (1,532) | | Shareholders’ equity on public balance sheet | 141,144 | 135,197 | | Valuation adjustments | (37,973) | (36,596) | | Non-controlling interests | 9,578 | 8,726 | | Total Equity on public balance sheet | 112,748 | 107,327 | | Goodwill and intangible assets | (15,037) | (16,098) | | Eligible preference shares and participating securities | 9,645 | 10,371 | | Accrued dividend C | (1,827) | (1,611) | | Other adjustments A | (11,146) | (9,817) | | Tier 1B | 94,383 | 90,172 | A. Fundamentally for non-computable non-controlling interests and deductions and reasonable filters in compliance with CRR . B. Figures calculated by applying the transitional provisions of CRR 3 IFRS 9. C. Assumes 25% of underlying profit, see note 4.a for proposed distribution of results. Note: Certain figures presented in this capital note have been rounded for ease of presentation. Consequently, the amounts corresponding to the rows or columns of totals in the tables presented in this note may not coincide with the arithmetic sum of the concepts or items that make up the total. 1 Data calculated applying the transitional provisions of CRR 3. The following table shows the capital coefficients and a detail of the eligible internal resources of the Group: | | | | | --- | --- | --- | | | | | | Capital coefficients | | | | | 2025 | 2024 | | Level 1 ordinary eligible capital (EUR million) | 84,739 | 79,800 | | Level 1 additional eligible capital (EUR million) | 9,645 | 10,371 | | Level 2 eligible capital (EUR million) | 17,460 | 18,418 | | Risk-weighted assets (EUR million) | 629,430 | 624,503 | | Level 1 ordinary capital coefficient (CET 1) | 13.46% | 12.78% | | Level 1 additional capital coefficient (AT1) | 1.53% | 1.66% | | Level 1 capital coefficient (TIER1) | 15.00% | 14.44% | | Level 2 capital coefficient (TIER 2) | 2.77% | 2.95% | | Total capital coefficient | 17.77% | 17.39% | | | | | | --- | --- | --- | | | | | | Eligible capital | | | | EUR million | | | | | 2025 | 2024 | | Eligible capital | | | | Common Equity Tier I | 84,739 | 79,800 | | Capital | 7,345 | 7,576 | | (-) Treasure shares and own shares financed | (1,892) | (1,694) | | Share Premium | 36,792 | 40,079 | | Reserves | 84,663 | 76,608 | | Other retained earnings | (39,918) | (38,617) | | Minority interests | 9,037 | 8,479 | | Profit net of dividends | 10,576 | 9,431 | | Deductions | (21,863) | (22,061) | | Goodwill and intangible assets | (15,037) | (15,957) | | Others | (6,826) | (6,104) | | Additional Tier I | 9,645 | 10,371 | | Eligible instruments AT1 | 8,937 | 9,725 | | AT1-excesses-subsidiaries | 708 | 645 | | Tier II | 17,460 | 18,418 | | Eligible instruments T2 | 17,754 | 18,869 | | Excess IRB provision on PE | — | — | | T2-excesses - subsidiaries | (294) | (450) | | Total eligible capital | 111,845 | 108,589 | Note: Banco Santander, S.A. and its affiliates had not taken part in any State aid programmes. 218 #### Leverage ratio Basel III established the leverage ratio as a non-risk sensitive measure aimed at limiting excessive balance sheet growth relative to available capital. The Group performs the calculation in accordance with Regulation (EU) 2019/876 of 20 May 2019 amending Regulation (EU) No 575/2013 as regards the leverage ratio. This ratio is calculated as tier 1 capital divided by leverage exposure. Exposure is calculated as the sum of the following items: • Accounting assets, excluding derivatives and items treated as deductions from tier 1 capital (for example, the balance of loans is included, but not that of goodwill) further excluding the exposures referred to in Article 429.a (1) of the regulation. • Off-balance-sheet items (mainly guarantees, unused credit limits granted and documentary credits) weighted using credit conversion factors. • Inclusion of net value of derivatives (gains and losses are netted with the same counterparty, minus collaterals if they comply with certain criteria) plus a charge for the future potential exposure. • A charge for the potential risk of security funding transactions. • Lastly, it includes a charge for the risk of credit derivative swaps (CDS). With the publication of Regulation (EU) 2019/876 of 20 May, 2019, amending Regulation (EU) n.º 575/2013 as regards the leverage ratio, the final calibration of the ratio is set at 3% for all entities and, for systemic entities G-SIB, is established an additional surcharge which would be 50% of the cushion ratio applicable to the EISM, applicable from January 2023. In addition, modifications are included in its calculation, including the exclusion of certain exposures from the total exposure measure: public loans when exceptional circumstances arise, public loans, transfer loans and officially guaranteed export credits, transfer loans and officially guaranteed export credits. | | | | | --- | --- | --- | | | | | | EUR million | | | | | 2025 | 2024 | | Leverage | | | | Level 1 Capital | 94,385 | 90,170 | | Exposure | 1,924,349 | 1,885,572 | | Leverage Ratio | 4.90% | 4.78% | #### Global systemically important banks Grupo Santander is one of 29 banks designated as global systemically important banks (G-SIBs). The designation as a globally systemic entity comes from a measurement established by the regulators (FSB and BCBS) that they have implemented based on five indicators (size, interjurisdictional activity, interconnection with other financial entities, substitutability and complexity). The list uses data as of the end of 2024 and is based on a methodology agreed in July 2018 and implemented for the first time in the assessment of G-SIBs as of the end of 2021, incorporating, among other things, an additional score considering the Member States of the SRM as a single jurisdiction. This definition means it has to fulfil certain additional requirements, which consist mainly of a capital buffer ( 1% ), in TLAC requirements (total loss absorbing capacity), that Grupo Santander has to publish relevant information more frequently than other banks, greater regulatory requirements for internal control bodies, special supervision and drawing up of special reports to be submitted to supervisors. Additionally, Grupo Santander appears both on the list of global systemic entities and on the list of domestic systemic entities. Bank of Spain, based on rule 23 of Circular 2/2016, requires the application of the highest of the two corresponding buffers, in the case of Grupo Santander being the domestic one, 1.25%, a surcharge payable by 2025. The fact that Grupo Santander has to comply with these requirements makes it a more solid bank than its domestic rivals. 219 #### Appendix I | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | 2 & 3 Triton Limited (j) | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Real estate | 0 | 0 | 0 | | A & L CF (Guernsey) Limited (j) (n) | Guernsey | 0.00% | 100.00% | | 100.00% | 100.00% | Leasing | 1 | 0 | 0 | | Abbey Covered Bonds (Holdings) Limited | United Kingdom | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Abbey Covered Bonds (LM) Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Securitization | 0 | 0 | 0 | | Abbey Covered Bonds LLP | United Kingdom | — | (b) | | — | — | Securitization | 1,807 | (589) | 0 | | Abbey National Business Office Equipment Leasing Limited (j) | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Abbey National Nominees Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Abbey National PLP (UK) Limited (j) | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Abbey National Property Investments | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 240 | 8 | 158 | | Abbey Stockbrokers (Nominees) Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Abbey Stockbrokers Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Abent 3T, S.A.P.I de C.V. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Electricity production | (127) | (22) | 0 | | Ablasa Participaciones, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 811 | 208 | 894 | | Aduro S.A. | Uruguay | 0.00% | 100.00% | | 100.00% | 100.00% | Payments and collection services | 1 | 0 | 1 | | Aevis Europa, S.L. | Spain | 96.34% | 0.00% | | 96.34% | 96.34% | Cards | 2 | 0 | 1 | | AFB SAM Holdings, S.L. | Spain | 1.00% | 99.00% | | 100.00% | 100.00% | Holding company | 1 | 0 | 0 | | Afisa S.A. | Chile | 0.00% | 100.00% | | 100.00% | 100.00% | Fund management company | 4 | 0 | 4 | | Agro Flex Fundo de Investimento em Direitos Creditórios | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investment fund | 419 | 54 | 425 | | Allane Leasing GmbH | Austria | 0.00% | 46.95% | | 100.00% | 100.00% | Renting | (2) | 0 | 0 | | Allane Location Longue Durée S.a.r.l. | France | 0.00% | 46.95% | | 100.00% | 100.00% | Renting | 25 | 4 | 0 | | Allane Mobility Consulting AG | Switzerland | 0.00% | 46.95% | | 100.00% | 100.00% | Consulting services | 0 | 0 | 0 | | Allane Mobility Consulting B.V. | Netherlands | 0.00% | 46.95% | | 100.00% | 100.00% | Consulting services | (3) | 0 | 0 | | Allane Mobility Consulting GmbH | Germany | 0.00% | 46.95% | | 100.00% | 100.00% | Consulting services | 11 | 10 | 5 | | Allane Mobility Consulting Österreich GmbH | Austria | 0.00% | 46.95% | | 100.00% | 100.00% | Consulting services | (1) | 0 | 0 | | Allane Mobility Consulting S.a.r.l | France | 0.00% | 46.95% | | 100.00% | 100.00% | Consulting services | (2) | 0 | 0 | | Allane Schweiz AG | Switzerland | 0.00% | 46.95% | | 100.00% | 100.00% | Renting | 10 | (6) | 2 | | Allane SE | Germany | 0.00% | 46.95% | | 92.07% | 92.07% | Renting | 172 | 24 | 150 | | Allane Services GmbH & co. KG | Germany | 0.00% | 46.95% | | 100.00% | 100.00% | Services | 2 | 0 | 0 | | Allane Services Verwaltungs GmbH | Germany | 0.00% | 46.95% | | 100.00% | 100.00% | Management of portfolios | 0 | 0 | 0 | | Alliance & Leicester Investments (No.2) Limited (j) | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | 220 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Alliance & Leicester Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Alliance & Leicester Personal Finance Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 2 | 0 | 2 | | Altamira Santander Real Estate, S.A. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Real estate | 138 | (4) | 164 | | Alternative Leasing, FIL (Compartimento B) | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Investment fund | 88 | 6 | 74 | | Amazonia Trade Limited | United Kingdom | 100.00% | 0.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | América Gestão Serviços em Energía S.A. | Brazil | 0.00% | 62.90% | | 70.00% | 70.00% | Electricity production | 2 | (1) | 1 | | Amherst Pierpont Commercial Mortgage Securities LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Securitization | 0 | 0 | 0 | | Amherst Pierpont International Ltd. | Hong-Kong | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | AMS Auto Markt Am Schieferstein GmbH (d) | Germany | 0.00% | 90.01% | | 100.00% | 100.00% | Vehicle sales | 0 | 0 | 0 | | AN (123) Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Andromeda Principal Investments, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | — | Holding company | 72 | 5 | 72 | | ANITCO Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | AP Acquisition Trust I | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Trust company | 0 | 0 | 0 | | AP Acquisition Trust II | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | AP Asset Acquisition LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Financial services | 1 | 0 | 1 | | APSG GP LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 0 | 0 | 0 | | Aquanima Brasil Ltda. | Brazil | 0.00% | 100.00% | | 100.00% | 100.00% | E-commerce | 2 | (1) | 2 | | Aquanima Chile S.A. | Chile | 0.00% | 100.00% | | 100.00% | 100.00 | Services | 3 | (1) | 3 | | Aquanima México S. de R.L. de C.V. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | E-commerce | 4 | (1) | 2 | | Aquanima S.A. | Argentine | 0.00% | 100.00% | | 100.00% | 100.00% | Services | 2 | 0 | 4 | | Ararinha Renda Fixa Crédito Privado - Fundo de Investimento Financeiro | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investment fund | 8 | 0 | 7 | | Artarien S.A. | Uruguay | 100.00% | 0.00% | | 100.00% | 100.00% | Insurance mediation | 6 | 18 | 2 | | Atempo Growth I - Sub-Fund 4 | Luxembourg | 100.00% | 0.00% | | 100.00% | 100.00% | Investment fund | 30 | 4 | 31 | | Atempo Growth II - Sub Fund 3 | Luxembourg | 100.00% | 0.00% | | 100.00% | — | Investment fund | 5 | 0 | 5 | | Atlantes Mortgage No. 3 | Portugal | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Atual - Fundo de Invest Multimercado Crédito Privado Investimento no Exterior | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investment fund | 521 | 27 | 492 | | Auto ABS DFP Master Compartment France 2013 | France | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Auto ABS French Leases 2023 | France | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Auto ABS French Leases 2025 | France | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Auto ABS French Leases Master Compartment 2016 | France | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Auto ABS French Loans 2024 | France | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Auto ABS French Loans Master | France | — | (b) | | — | — | Securitization | 0 | 0 | 0 | 221 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Auto ABS Italian Balloon 2019-1 S.r.l. | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Auto ABS Italian Rainbow Loans S.r.l. (j) | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Auto ABS Italian Stella Loans 2023-1 S.r.l. | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Auto ABS Italian Stella Loans S.r.l. (series 2024-1) | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Auto ABS Italian Stella Loans S.r.l. (series 2024-2) | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Auto ABS Italian Stella Loans S.r.l. (series 2025-1) | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Auto ABS Italian Stella Loans S.r.l. (series 2025-2) | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Auto ABS Spanish Loans 2022-1, Fondo de Titulización | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Auto ABS Spanish Loans 2024-1, Fondo de Titulización | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Autodescuento, S.L. | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Vehicles purchased by internet | 3 | (1) | 12 | | Autohaus24 GmbH | Germany | 0.00% | 46.95% | | 100.00% | 100.00% | Internet | (2) | 0 | 0 | | Auto-Interleasing AG | Switzerland | 0.00% | 100.00% | | 100.00% | 100.00% | Renting | 27 | 4 | 22 | | Auttar HUT Processamento de Dados Ltda. | Brazil | 0.00% | 100.00% | | 100.00% | 100.00% | IT services | 7 | (1) | 6 | | Aviación Antares, A.I.E. | Spain | 99.99% | 0.01% | | 100.00% | 100.00% | Renting | 72 | (14) | 28 | | Aviación Británica, A.I.E. | Spain | 99.99% | 0.01% | | 100.00% | 100.00% | Renting | 28 | 1 | 6 | | Aviación Comillas, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Renting | 7 | 0 | 8 | | Aviación Laredo, S.L. | Spain | 99.00% | 1.00% | | 100.00% | 100.00% | Air transport | 3 | 0 | 3 | | Aviación Oyambre, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Renting | 1 | 0 | 0 | | Aviación Santillana, S.L. | Spain | 99.00% | 1.00% | | 100.00% | 100.00% | Renting | 6 | 1 | 2 | | Aviación Suances, S.L. | Spain | 99.00% | 1.00% | | 100.00% | 100.00% | Air transport | 7 | 1 | 3 | | Banco Bandepe S.A. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Banking | 825 | 100 | 831 | | Banco de Albacete, S.A. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Banking | 14 | 0 | 9 | | Banco Hyundai Capital Brasil S.A. | Brazil | 0.00% | 44.93% | | 50.00% | 50.00% | Banking | 92 | 30 | 55 | | Banco Santander - Chile | Chile | 0.00% | 67.13% | | 67.18% | 67.18% | Banking | 4,056 | 994 | 3,646 | | Banco Santander (Brasil) S.A. | Brazil | 0.04% | 89.82% | | 90.45% | 90.60% | Banking | 12,347 | 2,395 | 10,795 | | Banco Santander (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander México como Fiduciaria del Fideicomiso 100740 | Mexico | 0.00% | 99.98% | | 100.00% | 100.00% | Finance company | 182 | 20 | 149 | | Banco Santander (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander México como Fiduciaria del Fideicomiso 2002114 | Mexico | 0.00% | 99.98% | | 100.00% | 100.00% | Finance company | 9 | 0 | 10 | | Banco Santander (México), S.A., Institución de Banca Múltiple, Grupo Financiero Santander México como Fiduciaria del Fideicomiso GFSSLPT | Mexico | 0.00% | 99.98% | | 100.00% | 100.00% | Finance company | 11 | 1 | 12 | | Banco Santander Argentina S.A. | Argentine | 0.00% | 99.82% | | 99.77% | 99.77% | Banking | 2,427 | 379 | 598 | | Banco Santander Colombia S.A. | Colombia | 92.95% | 7.05% | | 100.00% | 100.00% | Banking | 272 | 11 | 299 | 222 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Banco Santander International | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Banking | 879 | 176 | 1,055 | | Banco Santander International SA | Switzerland | 34.70% | 65.30% | | 100.00% | 100.00% | Banking | 1,424 | (46) | 809 | | Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México | Mexico | 24.93% | 75.05% | | 99.98% | 99.98% | Banking | 6,161 | 1,531 | 8,373 | | Banco Santander Perú S.A. | Peru | 99.90% | 0.10% | | 100.00% | 100.00% | Banking | 329 | 70 | 132 | | Banco Santander S.A. | Uruguay | 97.75% | 2.25% | | 100.00% | 100.00% | Banking | 660 | 156 | 180 | | Banco Santander Totta, S.A. | Portugal | 99.42% | 0.45% | | 99.87% | 99.96% | Banking | 3,608 | 946 | 6,149 | | Banque Stellantis France | France | 0.00% | 50.00% | | 50.00% | 50.00% | Banking | 998 | 152 | 881 | | Bansa Santander S.A. | Chile | 0.00% | 100.00% | | 100.00% | 100.00% | Real estate | 28 | 5 | 34 | | Beyond Wealth, S.A. | Spain | 99.99% | 0.01% | | 100.00% | 100.00% | Consulting services | 3 | (1) | 2 | | Bilkreditt 7 Designated Activity Company (j) | Ireland | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Blecno Investments, S.L. Unipersonal (e) | Spain | — | — | | — | 100.00% | Real estate | — | — | — | | Blue Ocean SBT, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 404 | 6 | 389 | | BRS Investments S.A. | Argentine | 5.10% | 94.90% | | 100.00% | 100.00% | Finance company | 100 | 13 | 75 | | Cántabro Catalana de Inversiones, S.A. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 419 | 4 | 422 | | Capital Street Delaware LP | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 0 | 0 | 0 | | Capital Street Holdings, LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 11 | 0 | 11 | | Capital Street REIT Holdings, LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 973 | 26 | 999 | | Capital Street S.A. | Luxembourg | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 0 | 0 | 0 | | Carmine D - Services, Unipessoal Lda. | Portugal | 0.00% | 100.00% | | 100.00% | 100.00% | Software | 0 | 0 | 2 | | Cartasur Cards S.A. | Argentine | 0.00% | 99.82% | | 100.00% | 100.00% | Finance company | 13 | 1 | 15 | | Casa de Bolsa Santander, S.A. de C.V., Grupo Financiero Santander México | Mexico | 0.00% | 99.97% | | 99.97% | 99.97% | Securities company | 92 | 15 | 107 | | Cater Allen Holdings Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Cater Allen International Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Cater Allen Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Banking | 284 | 100 | 255 | | Cater Allen Syndicate Management Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00 | Inactive | 0 | 0 | 0 | | CCAP Auto Lease Ltd. | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Leasing | 398 | 22 | 420 | | Centro de Capacitación Santander, A.C. | Mexico | 0.00% | 99.98% | | 100.00% | 100.00% | Non-profit institute | 1 | 0 | 1 | | Certidesa, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Aircraft rental | (67) | (8) | 0 | | Charlotte 2023 Funding Plc | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Securitization | 0 | 0 | 0 | | Charlotte 2023 Holdings Limited | United Kingdom | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Cianite New Energy, S.r.l. | Italy | 0.00% | 49.00% | | 70.00% | 70.00% | Renewable energies | 1 | 0 | 1 | | CIMA Commodities 2025-4 | Ireland | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | CIMA Finance DAC Series 2022-1 | Ireland | — | (b) | | — | — | Securitization | 0 | 0 | 0 | 223 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | CIMA Finance DAC Series 2023-1 | Ireland | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | CIMA Luxembourg S.à r.l. 2025-1 | Luxembourg | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | CLM Fleet Management Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Vehicle rental | 2 | 0 | 7 | | Cobranza Amigable, S.A.P.I. de C.V. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Collection services | 5 | 0 | 4 | | Community Development and Affordable Housing Fund LLC (c) | United States | 0.00% | 96.00% | | 96.00% | 96.00% | Asset management | 33 | (2) | 30 | | Compagnie Generale de Credit Aux Particuliers - Credipar S.A. | France | 0.00% | 50.00% | | 100.00% | 100.00% | Banking | 363 | (313) | 428 | | Compagnie Pour la Location de Vehicules - CLV | France | 0.00% | 50.00% | | 100.00% | 100.00% | Banking | 28 | 6 | 26 | | Comparanet, S.A. de C.V. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Insurance mediation | 7 | 0 | 7 | | Consumer Totta 1 | Portugal | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Consumer Totta 2 | Portugal | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Consumer Totta 3 2025 | Portugal | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Contrato de Fideicomiso Irrevocable de Administración INV/6206 | Mexico | — | (b) | | — | — | Trust company | 12 | (8) | 0 | | Contrato de Fideicomiso Irrevocable de Administración Nro. 6168 | Mexico | — | (b) | | — | — | Trust company | 0 | 13 | 0 | | Contrato de Fideicomiso Irrevocable Nro. F/6236 | Mexico | — | (b) | | — | — | Trust company | 0 | 17 | 0 | | Credileads S.A. | Uruguay | 0.00% | 100.00% | | 100.00% | 100.00% | Advertising | 1 | 0 | 5 | | D365 Fundo de Investimento em Direitos Creditórios | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investment fund | (16) | 19 | 3 | | Darep Designated Activity Company | Ireland | 100.00% | 0.00% | | 100.00% | 100.00 | Reinsurances | 12 | 2 | 13 | | Decarome, S.A.P.I. de C.V. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 24 | (1) | 22 | | Decarope S.A.C. | Peru | 0.00% | 100.00% | | 100.00% | 100.00% | Investment company | 9 | 2 | 9 | | Deva Capital Advisory Company, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Advisory services | 4 | 1 | 2 | | Deva Capital Holding Company, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 891 | (12) | 946 | | Deva Capital Investment Company, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 862 | 3 | 810 | | Deva Capital Management Company, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Advisory services | 20 | (12) | 7 | | Deva Capital Servicer Company, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 59 | 0 | 59 | | Diamante New Energy S.r.l. | Italy | 0.00% | 80.00 | | 80.00 | 0.00% | Renewable energies | 2 | 0 | 1 | | Diglo Servicer Company 2021, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Real estate management | 26 | 3 | 19 | | Diners Club Spain, S.A. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Cards | 10 | 2 | 11 | | Dirección Estratega, S.C. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Services | 0 | 0 | 0 | | Drive Auto Receivables Trust 2024-1 | United States | — | (b) | | — | — | Securitization | (127) | 82 | 0 | | Drive Auto Receivables Trust 2024-2 | United States | — | (b) | | — | — | Securitization | (286) | 166 | 0 | | Drive Auto Receivables Trust 2025-1 | United States | — | (b) | | — | — | Securitization | 0 | (157) | 0 | | Drive Auto Receivables Trust 2025-2 | United States | — | (b) | | — | — | Securitization | 0 | (223) | 0 | 224 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Drive S.r.l. | Italy | 0.00% | 100.00% | | 100.00% | 75.00% | Renting | 5 | (3) | 9 | | Ductor Real Estate, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Real estate | 22 | 4 | 17 | | Ebury Agent UK Limited | United Kingdom | 0.00% | 66.43% | | 100.00% | — | Financial services | 0 | 0 | 0 | | Ebury Banco de Cambio S.A. | Brazil | 0.00% | 66.43% | | 100.00% | 100.00% | Payment services | 21 | 5 | 17 | | Ebury Banco Holding Participações Ltda. | Brazil | 0.00% | 66.43% | | 100.00% | 100.00% | Holding company | 10 | 0 | 8 | | Ebury Brasil Consultoria S.A. | Brazil | 0.00% | 66.43% | | 100.00% | 100.00% | Consulting services | 93 | 0 | 95 | | Ebury Brasil Holding Ltda. | Brazil | 0.00% | 66.43% | | 100.00% | 100.00% | Holding company | 11 | 0 | 93 | | Ebury Brasil Participações S.A. | Brazil | 0.00% | 66.43% | | 100.00% | 100.00% | Holding company | 95 | 0 | 95 | | Ebury Facilitadora De Pagamentos Ltda. | Brazil | 0.00% | 66.43% | | 100.00% | 100.00% | Software | 0 | 0 | 0 | | Ebury Global Services, S.L. | Spain | 0.00% | 66.43% | | 100.00% | — | Advisory services | 0 | 0 | 0 | | Ebury Mass Payments Holdco Limited (g) | United Kingdom | 0.00% | 66.43% | | 100.00% | 100.00% | Holding company | 8 | 3 | 18 | | Ebury Mass Payments Limited (g) | United Kingdom | 0.00% | 66.43% | | 100.00% | 100.00% | Payment services | 6 | 0 | 0 | | Ebury Partners (DIFC) Limited (g) | Arab United Emirates | 0.00% | 66.43% | | 100.00% | 100.00% | Finance company | 4 | 0 | 5 | | Ebury Partners Australia Pty Ltd. (g) | Australia | 0.00% | 66.43% | | 100.00% | 100.00% | Finance company | 2 | 0 | 2 | | Ebury Partners Belgium NV / SA (g) | Belgium | 0.00% | 66.43% | | 100.00% | 100.00% | Payment services | 20 | 11 | 20 | | Ebury Partners Canada Limited (g) | Canada | 0.00% | 66.43% | | 100.00% | 100.00% | Finance company | 2 | 1 | 6 | | Ebury Partners Chile SpA | Chile | 0.00% | 66.43% | | 100.00% | 100.00% | Finance company | 0 | 0 | 0 | | Ebury Partners China Limited | China | 0.00% | 66.43% | | 100.00% | 100.00% | Marketing | 0 | 0 | 0 | | Ebury Partners Finance Limited (g) | United Kingdom | 0.00% | 66.43% | | 100.00% | 100.00% | Finance company | (11) | (5) | 0 | | Ebury Partners Hong Kong Limited (g) | Hong-Kong | 0.00% | 66.43% | | 100.00% | 100.00% | Finance company | 2 | 2 | 3 | | Ebury Partners Limited (g) | United Kingdom | 0.00% | 66.43% | | 66.43% | 66.43% | Holding company | 222 | (18) | 412 | | Ebury Partners Lithuania UAB | Lithuania | 0.00% | 66.43% | | 100.00% | — | Payment services | 0 | 0 | 4 | | Ebury Partners Markets Cyprus Limited (g) | Cyprus | 0.00% | 66.43% | | 100.00% | 100.00% | Finance company | 0 | 0 | 1 | | Ebury Partners Markets Limited (g) | United Kingdom | 0.00% | 66.43% | | 100.00% | 100.00% | Finance company | 23 | 2 | 17 | | Ebury Partners México, S.A. de C.V. | Mexico | 0.00% | 66.43% | | 100.00% | 100.00% | Payment services | 0 | 0 | 0 | | Ebury Partners Payment Solutions Uganda Limited | Uganda | 0.00% | 66.43% | | 100.00% | — | Finance company | 0 | 0 | 0 | | Ebury Partners Payments - L.L.C. | Arab United Emirates | 0.00% | 66.43% | | 100.00% | — | Payment services | 0 | 0 | 0 | | Ebury Partners Payments Solutions Limited | Kenya | 0.00% | 66.43% | | 100.00% | — | Payment services | 0 | 0 | 0 | | Ebury Partners South Africa (Pty) Ltd (g) | Republic of South Africa | 0.00% | 66.43% | | 100.00% | 100.00% | Finance company | 0 | (1) | 0 | | Ebury Partners Switzerland AG (g) | Switzerland | 0.00% | 66.43% | | 100.00% | 100.00% | Finance company | 6 | 1 | 5 | | Ebury Partners Tanzania Limited | Tanzania | 0.00% | 66.43% | | 100.00% | — | Payment services | 0 | 0 | 0 | | Ebury Partners UK Limited (g) | United Kingdom | 0.00% | 66.43% | | 100.00% | 100.00% | Electronic money | 19 | 6 | 158 | 225 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Ebury Payments PTE Ltd. (g) | Singapore | 0.00% | 66.43% | | 100.00% | 100.00% | Payment services | 1 | 0 | 1 | | Ebury Soluções de Pagamentos Ltda. | Brazil | 0.00% | 66.43% | | 100.00% | 100.00% | Financial services | 2 | 0 | 4 | | Ebury Technology Limited (g) | United Kingdom | 0.00% | 66.43% | | 100.00% | 100.00% | Software | (56) | 6 | 0 | | Ebury Technology Spain, S.L. | Spain | 0.00% | 66.43% | | 100.00% | — | IT consulting | 0 | (1) | 0 | | EDT FTPYME Pastor 3, Fondo de Titulización de Activos | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Elcano Renovables, S.L. | Spain | 0.00% | 70.00% | | 70.00% | 70.00% | Holding company | 0 | 0 | 0 | | Electrolyser, S.A. de C.V. | Mexico | 0.00% | 99.98% | | 100.00% | 100.00% | Services | 0 | 0 | 0 | | Elevate Tech Platforms, S.L. Unipersonal (e) | Spain | — | — | | — | 100.00% | Holding company | 0 | 0 | 0 | | Emdia Serviços Especializados em Cobranças Ltda. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Collection services | 33 | 5 | 34 | | Empresa de Créditos Santander Consumo Perú S.A. | Peru | 100.00% | 0.00% | | 100.00% | 100.00% | Finance company | 55 | 13 | 50 | | Energias Renovables de Ormonde 30, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Renewable energies | 17 | 0 | 24 | | Energias Renovables de Titania, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Renewable energies | 2 | 0 | 6 | | Energias Renovables Gladiateur 45, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Renewable energies | 16 | (1) | 23 | | Energias Renovables Prometeo, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Renewable energies | 3 | 0 | 7 | | Esfera Fidelidade S.A. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Services | 2 | 135 | 124 | | Evidence Previdência S.A. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Insurance | 118 | 2 | 107 | | Eyemobile Tecnologia Ltda. | Brazil | 0.00% | 100.00% | | 100.00% | 100.00% | IT services | 0 | (1) | 0 | | F1rst Tecnologia e Inovação Ltda. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | IT services | 76 | 9 | 77 | | Factum Identity Solutions, S.L. | Spain | 0.00% | 67.20% | | 84.00% | — | IT consulting | 0 | 0 | 0 | | Factum Information Technologies, S.L. | Spain | 0.00% | 80.00% | | 80.00% | — | IT consulting | 8 | (1) | 6 | | Factum IT Limited | United Kingdom | 0.00% | 80.00% | | 100.00% | — | IT consulting | 0 | 0 | 0 | | Factum Navarra, S.L. Unipersonal | Spain | 0.00% | 80.00% | | 100.00% | — | IT consulting | 0 | 0 | 0 | | FIDC Santander Auto Loans I Segmento Financeiro - Responsabilidade Limitada | Brazil | — | (b) | | — | — | Securitization | 465 | 2 | 0 | | Fideicomiso Empresarial Irrevocable de Administración y Garantía F/3443 | Mexico | — | (b) | | — | — | Trust company | 0 | 1 | 0 | | Financeira El Corte Inglés, Portugal, S.F.C., S.A. | Portugal | 0.00% | 51.00% | | 100.00% | 100.00% | Finance company | 8 | 1 | 4 | | Financiera El Corte Inglés, E.F.C., S.A. | Spain | 0.00% | 51.00% | | 51.00% | 51.00% | Finance company | 248 | 55 | 140 | | Finsantusa, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 1,320 | 23 | 1,020 | | First National Motor plc | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | First National Tricity Finance Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 6 | 0 | 6 | | FIT Economia de Energia S.A. | Brasil | 0.00% | 58.41% | | 65.00% | 65.00% | Explotación de energía eléctrica | (2) | (7) | 0 | | Flexliving Valdemarín, S.L. | Spain | 0.00% | 27.57 | | 27.57% | 90.00% | Real estate | 14 | 0 | 4 | 226 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Fondo de Titulización PYMES Santander 15 | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Fondo de Titulización Santander Financiación 1 | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Fondo de Titulización, RMBS Santander 7 | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Fondo de Titulización, Santander Consumo 8 | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Fondo de Titulización, Santander Consumo 9 | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Fondos Santander, S.A. Administradora de Fondos de Inversión (en liquidación) (j) | Uruguay | 0.00% | 100.00% | | 100.00% | 100.00% | Fund management company | 0 | 0 | 0 | | Fortensky Trading, Ltd. | Ireland | 0.00% | 100.00 | | 100.00% | 100.00% | Finance company | 0 | 0 | 0 | | Fosse (Master Issuer) Holdings Limited | United Kingdom | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Fosse Funding (No.1) Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Securitization | 102 | (51) | 0 | | Fosse Master Issuer PLC | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Securitization | 0 | 0 | 0 | | Fosse Trustee (UK) Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Securitization | 0 | 0 | 0 | | Freedom Depository Holdings, LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 0 | 0 | 0 | | Freedom Depository, LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Securitization | 0 | 0 | 0 | | Fulvia SPV S.r.l. | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Fulvia SPV S.r.l. (2025-1) | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Fundo de Investimento em Direitos Creditórios Atacado - Não Padronizado | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investment fund | 115 | 7 | 110 | | Fundo de Investimento em Direitos Creditórios Conretorno - Responsabilidade Limitada | Brazil | — | 89.86% | | 100.00 | — | Investment fund | 19 | 1 | 18 | | Fundo de Investimento em Direitos Creditórios Multisegmentos NPL Ipanema VI – Não padronizado | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investment fund | 367 | 20 | 347 | | Fundo de Investimento em Direitos Creditórios Tellus | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investment fund | 0 | 0 | 0 | | Gamma, Sociedade Financeira de Titularização de Créditos, S.A. | Portugal | 0.00% | 99.87% | | 100.00% | 100.00% | Securitization | 8 | 0 | 8 | | GC FTPYME Pastor 4, Fondo de Titulización de Activos | Spain | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Generación de Energía Villahermosa, S.A.P.I. de C.V. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Electricity production | 6 | 0 | 7 | | Gesban México Servicios Administrativos Globales, S.A. de C.V. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Services | 2 | 0 | 0 | | Gesban Santander Servicios Profesionales Contables Limitada | Chile | 0.00% | 100.00% | | 100.00% | 100.00% | Accounting services | 1 | 0 | 0 | | Gesban Servicios Administrativos Globales, S.L. | Spain | 99.99% | 0.01% | | 100.00% | 100.00% | Services | 4 | 0 | 1 | | Gesban UK Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Payments and collection services | 2 | 0 | 0 | | Gestión de Inversiones JILT, S.A. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Services | 15 | 0 | 15 | | Gestora de Procesos S.A. en liquidación (j) | Peru | 100.00% | 0.00% | | 100.00% | 100.00% | Financial services | (1) | 0 | 0 | 227 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Getnet Adquirência e Serviços para Meios de Pagamento S.A. - Instituição de Pagamento | Brazil | 0.00% | 100.00% | | 100.00% | 100.00% | Payment services | 434 | 98 | 317 | | Getnet Argentina S.A.U. | Argentine | 0.00% | 100.00% | | 100.00% | 100.00% | Payment methods | 25 | (1) | 23 | | Getnet Europe, Entidad de Pago, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Payment services | 158 | 22 | 137 | | Getnet Fundo de Investimento em Direitos Creditórios | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investment fund | 9 | 1 | 8 | | Getnet Merchant Solutions UK Ltd | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Financial services | 0 | 0 | 0 | | Getnet México Servicios de Adquirencia, S.A. de C.V. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Payments and collection services | 154 | 59 | 175 | | Getnet Payments, S.L. | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 927 | 135 | 1,199 | | Getnet Sociedade de Credito Direto S.A. | Brazil | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 14 | 1 | 15 | | Getnet Technology and Operations Brasil Ltda. | Brazil | 0.00% | 100.00% | | 100.00% | 100.00% | IT services | 127 | (15) | 112 | | Getnet Uruguay S.A. | Uruguay | 0.00% | 100.00% | | 100.00% | 100.00% | Payment methods | 15 | (1) | 15 | | GNXT Serviços de Atendimento Ltda. | Brazil | 0.00% | 100.00% | | 100.00% | 100.00% | Telemarketing | 4 | 0 | 4 | | Golden Bar (Securitisation) S.r.l. | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Golden Bar Stand Alone 2021-1 | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Golden Bar Stand Alone 2022-1 | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Golden Bar Stand Alone 2023-2 | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Golden Bar Stand Alone 2024-1 | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Golden Bar Stand Alone 2025-1 | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Golden Bar Stand Alone 2025-2 | Italy | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Grafite New Energy, S.r.l. | Italy | 0.00% | 49.00% | | 70.00% | 70.00% | Renewable energies | 1 | 0 | 1 | | Gravity Cloud Technology, S.L. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | IT services | 34 | 0 | 33 | | Grupo Empresarial Santander, S.L. | Spain | 99.62% | 0.38% | | 100.00% | 100.00% | Holding company | 5,259 | 403 | 2,879 | | Grupo Financiero Santander México, S.A. de C.V. | Mexico | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 4,961 | 1,096 | 5,860 | | Hipototta No. 13 | Portugal | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Hipototta No. 14 | Portugal | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Hipototta No. 4 plc (j) | Ireland | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Hipototta No. 5 plc (j) | Ireland | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Holbah Santander, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 797 | 84 | 870 | | Holmes Funding Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Securitization | 215 | (79) | 0 | | Holmes Holdings Limited | United Kingdom | — | (b) | | — | — | Securitization | 0 | 0 | 0 | | Holmes Master Issuer plc | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Securitization | 1 | 0 | 0 | | Holmes Trustees Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Securitization | 0 | 0 | 0 | 228 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Hyundai Capital Bank Europe GmbH | Germany | 0.00% | 51.00% | | 51.00% | 51.00% | Banking | 1,125 | 16 | 558 | | Hyundai Fundo de Investimento em Direitos Creditórios | Brazil | 0.00% | 44.93% | | 100.00% | 100.00% | Investment fund | 266 | 48 | 141 | | Ibérica de Compras Corporativas, S.L. | Spain | 97.17% | 2.82% | | 100.00% | 100.00% | E-commerce | 29 | (2) | 6 | | Innohub, S.A.P.I. de C.V. (j) | Mexico | 0.00% | 62.01% | | 69.54% | 69.54% | IT services | 0 | 0 | 0 | | Insurance Funding Solutions Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Inversiones Capital Global, S.A. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 102 | 6 | 107 | | Inversiones Marítimas del Mediterráneo, S.A., en liquidación (c) (j) | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 2 | (1) | 0 | | Investment Holdings 1857, S.L. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 32 | 357 | 33 | | Isar Valley S.A. | Luxembourg | — | (b) | | — | — | Securitization | (3) | 0 | 0 | | Isla de los Buques, S.A. | Spain | 99.98% | 0.02% | | 100.00% | 100.00% | Finance company | 1 | 0 | 1 | | Klare Corredora de Seguros Limitada | Chile | 0.00% | 100.00% | | 100.00% | 100.00% | Insurance mediation | (4) | (1) | 0 | | Landcompany 2020, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Real estate management | 1,577 | (22) | 1,609 | | Laparanza, S.A. | Spain | 61.59% | 0.00% | | 61.59% | 61.59% | Agricultural holding | 29 | 0 | 16 | | Lerma Investments 2018, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Real estate | 11 | 0 | 11 | | Liquetine, S.L. Unipersonal | Spain | 0.00% | 70.00% | | 100.00% | 100.00% | Renewable energies | 11 | 0 | 10 | | Lynx Financial Crime Tech, S.A. | Spain | 0.00% | 79.99% | | 79.99% | 79.99% | IT services | 54 | 1 | 48 | | MAC No. 1 Limited | United Kingdom | — | (b) | | — | — | Inactive | (1) | 0 | 0 | | Macroscope S.L. Unipersonal | Spain | 100.00 | 0.00% | | 100.00 | — | Consulting services | 3 | (1) | 4 | | Mascor SPV 2025, S.L. | Spain | 0.00% | 29.10% | | 29.10 | — | Real estate | 8 | 0 | 2 | | Master Red Europa, S.L. | Spain | 96.34 | 0.00% | | 96.34 | 96.34% | Cards | 1 | 0 | 1 | | Mata Alta, S.L. Unipersonal | Spain | 0.00% | 61.59% | | 100.00 | 100.00% | Agricultural holding | 0 | 0 | 0 | | MCE Bank GmbH (d) | Germany | 0.00% | 90.01% | | 90.01 | 90.01% | Banking | 168 | 0 | 117 | | MCE Verwaltung GmbH (d) | Germany | 0.00% | 90.01% | | 100.00 | 100.00% | Real estate rental | 10 | 0 | 9 | | Mercadotecnia, Ideas y Tecnología, S.A. de C.V. | Mexico | 0.00% | 70.00% | | 70.00 | 70.00% | Payment methods | 0 | 13 | 45 | | Merciver, S.L. | Spain | 99.90 | 0.10% | | 100.00 | 100.00% | Financial advisory | 0 | 0 | 0 | | Midata Service GmbH (d) | Germany | 0.00% | 90.01% | | 100.00 | 100.00% | IT services | 0 | 0 | 0 | | Moon GC&P Investments, S.L. Unipersonal | Spain | 100.00 | 0.00% | | 100.00 | 100.00% | Holding company | 91 | (2) | 85 | | Mouro Capital I LP | United Kingdom | 0.00% | 100.00% | | 100.00 | 100.00% | Investment fund | 787 | 311 | 822 | | Multiplica SpA | Chile | 0.00% | 100.00% | | 100.00 | 100.00% | Payment services | 2 | 0 | 2 | | Murattabat International Business Services | Palestine | 0.00% | 66.43% | | 100.00 | — | IT consulting | 0 | 0 | 0 | 229 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Navegante Américo Vespucio SpA | Chile | 0.00% | 100.00% | | 100.00% | 100.00% | Real estate | 59 | (2) | 90 | | Naviera Mirambel, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 0 | 0 | 0 | | Naviera Trans Gas, A.I.E. | Spain | 99.99% | 0.01% | | 100.00% | 100.00% | Renting | 60 | (1) | 62 | | Naviera Transcantábrica, S.L. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Leasing | 5 | 0 | 4 | | Naviera Transchem, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Leasing | 1 | 0 | 1 | | Navigator Global Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Internet | 14 | (4) | 14 | | NeoAuto S.A.C. | Peru | 0.00% | 100.00% | | 100.00% | 100.00% | Vehicles purchased by internet | 1 | (1) | 2 | | Newcomar, S.L., en liquidación (j) | Spain | 40.00% | 40.00% | | 80.00% | 80.00% | Real estate | 0 | 0 | 0 | | Novimovest – Fundo de Investimento Imobiliário | Portugal | 0.00% | 78.76% | | 78.86% | 78.74% | Investmen t fund | 119 | 2 | 96 | | NW Services CO. | United States | 0.00% | 100.00% | | 100.00% | 100.00% | E- commerce | 7 | 3 | 8 | | One Mobility Management GmbH | Germany | 0.00% | 46.95% | | 100.00% | 100.00% | Services | 0 | 0 | 0 | | Open Bank, S.A. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Banking | 666 | 66 | 630 | | Open Digital Market, S.L. | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Commerce | 0 | 0 | 0 | | Open Digital Services, S.L. | Spain | 99.97% | 0.03% | | 100.00% | 100.00% | Services | 38 | (12) | 20 | | Openbank México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander México | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Banking | 244 | (66) | 177 | | Operadora de Carteras Gamma, S.A.P.I. de C.V. | Mexico | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 12 | 0 | 6 | | Optimal Investment Services SA | Switzerland | 100.00% | 0.00% | | 100.00% | 100.00% | Fund managem ent company | 45 | 0 | 30 | 230 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Optimal Multiadvisors Ireland Plc / Optimal Strategic US Equity Ireland Euro Fund (i) (m) | Ireland | 0.00% | 0.00% | | 0.00% | 0.00% | Fund managem ent company | 0 | 0 | 0 | | Optimal Multiadvisors Ireland Plc / Optimal Strategic US Equity Ireland US Dollar Fund (i) (m) | Ireland | 0.00% | 0.00% | | 0.00% | 0.00% | Fund managem ent company | 0 | 0 | 0 | | Paga Después, S.A. de C.V. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Financial services | 3 | 0 | 3 | | PagoNxt Emoney, E.D.E., S.L. | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Financial services | 4 | (1) | 4 | | PagoNxt Ltd | United Kingdom | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 0 | 0 | 0 | | PagoNxt Merchant Solutions FZ-LLC (j) | Arab United Emirates | 0.00% | 100.00% | | 100.00% | 100.00% | Financial services | 1 | 0 | 1 | | PagoNxt Merchant Solutions India Private Limited (d) (j) | India | 0.00% | 100.00% | | 100.00% | 100.00% | Financial services | 0 | 0 | 0 | | PagoNxt Payments Brasil Ltda. | Brazil | 0.00% | 100.00% | | 100.00% | 100.00% | Financial services | 3 | 0 | 3 | | PagoNxt Payments Chile SpA | Chile | 0.00% | 100.00% | | 100.00% | 100.00% | Services | 1 | 0 | 1 | | PagoNxt Payments México, S.A. de C.V. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | IT services | 1 | 1 | 2 | | PagoNxt Payments Services, S.L. | Spain | 0.00 | 100.00% | | 100.00% | 100.00% | Services | 275 | (47) | 227 | | PagoNxt Payments UK Ltd | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Payment services | 4 | (2) | 4 | | PagoNxt Payments, S.L. | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | IT services | 348 | (57) | 291 | | PagoNxt US, LLC | United States | 0.00% | 100.00% | | 100.00 | 100.00% | Inactive | 0 | 0 | 0 | | PagoNxt, S.L. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 1,964 | (22) | 3,332 | | Paytec Tecnologia em Pagamentos Ltda. | Brazil | 0.00% | 100.00% | | 100.00% | 100.00% | Commerce | 4 | (1) | 4 | | PBE Companies, LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Real estate | 104 | (4) | 101 | 231 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Pereda Gestión, S.A. | Spain | 99.99% | 0.01% | | 100.00% | 100.00% | Securities brokerage | 52 | 42 | 4 | | Phoenix S.A. | Uruguay | 0.00% | 100.00% | | 100.00% | 100.00% | Payment methods | 4 | 1 | 7 | | Pinle SPV 2024, S.L. | Spain | 0.00% | 27.57% | | 27.57% | 0.00% | Real estate | 5 | 0 | 1 | | Pony S.A. | Luxembourg | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | Pony S.A., Compartment German Auto Loans 2023-1 | Luxembourg | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | Pony S.A., Compartment German Auto Loans 2024-1 | Luxembourg | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | Pony S.A., Compartment German Auto Loans 2025-1 | Luxembourg | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | Portal Universia Argentina S.A. | Argentine | 0.00% | 75.75% | | 75.75% | 75.75% | Internet | 0 | 0 | 0 | | Portal Universia Portugal, Prestação de Serviços de Informática, S.A. | Portugal | 0.00% | 100.00% | | 100.00% | 100.00% | Internet | 0 | 0 | 0 | | Precato IV Fundo de Investimento em Direitos Creditórios - Não Padronizados | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investmen t fund | 45 | 8 | 41 | | Prime 16 – Fundo de Investimentos Imobiliário | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investmen t fund | 4 | 0 | 4 | | PT Trans Skills Employer Services | Indonesia | 0.00% | 66.43% | | 100.00% | — | Consulting services | 0 | 0 | 0 | | Pulse Client Experts Ltda. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Telemarke ting | 18 | 2 | 18 | | Punta Lima, LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Leasing | 0 | 1 | 0 | | Redoto SPV 2025, S.L. | Spain | 0.00% | 30.60% | | 30.60% | — | Real estate | 46 | 0 | 14 | | Repton 2023-1 Limited | United Kingdom | — | (b) | | — | — | Securitizati on | 1 | 1 | 0 | | Retailcompany 2021, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Real estate | 298 | (15) | 293 | | Retop S.A. (f) | Uruguay | 100.00% | 0.00% | | 100.00% | 100.00% | Finance company | 39 | (1) | 62 | 232 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Return Capital Gestão de Ativos e Participações S.A. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Collection services | (32) | 90 | 52 | | Rojo Entretenimento S.A. | Brazil | 0.00% | 85.01% | | 94.60% | 94.60% | Real estate | 25 | 2 | 23 | | SAFO Alternative Lending, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 39 | 1 | 43 | | SAI Alternative Investments México, S.A. de C.V. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Consulting services | 1 | (1) | 1 | | SAI Lux Carry SCSp | Luxembour g | 0.00% | 100.00% | | 100.00% | 100.00% | Fund managem ent company | 0 | 0 | 0 | | Sainte Julie Fundo de Investimento em Direitos Creditórios Não-Padronizados Responsabilidade Limitada | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investmen t fund | 81 | 30 | 100 | | SALCO, Servicios de Seguridad Santander, S.A. | Spain | 99.99% | 0.01% | | 100.00% | 100.00% | Safety | 2 | 1 | 1 | | SAM Argentina Sociedad Gerente de Fondos Comunes de Inversión S.A. | Argentine | 0.00% | 100.00% | | 100.00% | 100.00% | Investmen t fund managem ent | 2 | 0 | 2 | | SAM Asset Management, S.A. de C.V., Sociedad Operadora de Fondos de Inversión | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Fund managem ent company | 14 | 43 | 193 | | SAM Inversiones Argentina S.A. | Argentine | 0.00% | 100.00% | | 100.00% | 100.00% | Pension fund managem ent company | 0 | 0 | 1 | | SAM Investment Holdings, S.L. | Spain | 92.37% | 7.63% | | 100.00% | 100.00% | Holding company | 1,274 | 194 | 1,450 | | San Pietro Solar PV, S.r.l. | Italy | 0.00% | 56.00% | | 80.00% | 80.00% | Renewable energies | 18 | (1) | 19 | | San Preca Federal I Fundo de Investimento em Direitos Creditórios Não-Padronizados | Brazil | 0.00% | 86.59% | | 96.36% | 50.00% | Investmen t fund | 8 | 8 | 14 | | SANB Promotora de Vendas e Cobrança S.A. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Finance company | 1 | 5 | 6 | | Sancap Investimentos e Participações S.A. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Holding company | 94 | 110 | 164 | | Santander (CF Trustee Property Nominee) Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Santander (CF Trustee) Limited (d) | United Kingdom | — | (b) | | — | — | Inactive | 0 | 0 | 0 | 233 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Santander (Luxembourg) Issuer S.à r.l. | Luxembourg | 100.00% | 0.00% | | 100.00% | — | Securitizati on | 0 | 0 | 0 | | Santander (UK) Group Pension Schemes Trustees Limited (d) | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Santander Alternative Investments, S.G.I.I.C., S.A. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Fund managem ent company | 21 | (6) | 40 | | Santander AM Global Working Capital Fund I | Luxembourg | 100.00% | 0.00% | | 100.00% | 100.00% | Investmen t fund | 70 | 3 | 71 | | Santander Asesorías Financieras Limitada | Chile | 0.00% | 67.45% | | 100.00% | 100.00% | Financial advisory | 11 | 4 | 11 | | Santander Asset Finance Opportunities | Luxembourg | 100.00% | 0.00% | | 100.00% | 100.00% | Investmen t fund | 192 | 11 | 191 | | Santander Asset Finance plc | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Leasing | 96 | 86 | 166 | | Santander Asset Management - SGOIC, S.A. | Portugal | 0.00% | 100.00% | | 100.00% | 100.00% | Fund managem ent company | 6 | 4 | 9 | | Santander Asset Management Chile S.A. | Chile | 0.00% | 100.00% | | 100.00% | 100.00% | Securities investmen t | 0 | 0 | 0 | | Santander Asset Management Gerente de Fondos Comunes de Inversión S.A. | Argentine | 0.00% | 100.00% | | 100.00% | 100.00% | Fund managem ent company | 6 | 20 | 3 | | Santander Asset Management Luxembourg, S.A. | Luxembourg | 0.00% | 100.00% | | 100.00% | 100.00% | Fund managem ent company | 5 | 1 | 0 | | Santander Asset Management S.A. Administradora General de Fondos | Chile | 0.00% | 100.00% | | 100.00% | 100.00% | Fund managem ent company | (3) | 18 | 132 | | Santander Asset Management UK Holdings Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 218 | 74 | 186 | | Santander Asset Management UK Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Managem ent of funds and portfolios | 30 | 6 | 129 | | Santander Asset Management, S.A., SGIIC Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Fund managem ent company | 227 | 101 | 277 | | Santander Auto Lease Titling Ltd. | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Leasing | 8 | (15) | 0 | | Santander Back- Offices Globales Mayoristas, S.A. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Services | 5 | 6 | 1 | 234 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Santander Banca de Inversión Colombia, S.A.S. | Colombia | 100.00% | 0.00% | | 100.00% | 100.00% | Advisory services | 1 | 3 | 2 | | Santander Bank Polska S.A. | Poland | 58.70% | 0.00% | | 58.70% | 62.20% | Banking | 6,308 | 1,590 | 4,051 | | Santander Bank, National Association | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Banking | 10,871 | 1,183 | 12,035 | | Santander Brasil Administradora de Consórcio Ltda. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Services | 70 | 83 | 138 | | Santander Brasil Gestão de Recursos Ltda. | Brazil | 0.08% | 99.92% | | 100.00% | 100.00% | Securities investmen t | 387 | 45 | 423 | | Santander Capital Holdings LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 851 | 53 | 904 | | Santander Capital Structuring, S.A. de C.V. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00 | Holding company | 5 | 0 | 0 | | Santander Capitalização S.A. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Insurance | (47) | 101 | 48 | | Santander Cards Ireland Limited (n) | Ireland | 0.00% | 100.00% | | 100.00% | 100.00% | Cards | (8) | 0 | 0 | | Santander Cards Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 96 | 0 | 96 | | Santander Cards UK Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 145 | (15) | 121 | | Santander Chile Holding S.A. | Chile | 22.11% | 77.75% | | 99.86% | 99.86% | Holding company | 1,565 | 355 | 1,862 | | Santander Commercial Mortgage Securities LLC | United States | 0.00% | 100.00% | | 100.00% | — | Finance company | 0 | 0 | 0 | | Santander Compara Holding, S.L. | Spain | 99.97% | 0.03% | | 100.00% | 100.00% | Holding company | 12 | 0 | 12 | | Santander Consulting (Beijing) Co., Ltd. | China | 0.00% | 100.00% | | 100.00% | 100.00% | Advisory services | 10 | 0 | 4 | | Santander Consumer (UK) plc | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 938 | (109) | 298 | | Santander Consumer Auto Receivables Funding 2018-L3 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 117 | (1) | 0 | 235 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Santander Consumer Auto Receivables Funding 2022-B1 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | (56) | 17 | 0 | | Santander Consumer Auto Receivables Funding 2022-B2 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | (64) | 22 | 0 | | Santander Consumer Auto Receivables Funding 2022-B3 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | (103) | 66 | 0 | | Santander Consumer Auto Receivables Funding 2022-B4 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | (58) | 30 | 0 | | Santander Consumer Auto Receivables Funding 2023-B1 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | (48) | 53 | 0 | | Santander Consumer Auto Receivables Funding 2023-B2 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | (44) | 22 | 0 | | Santander Consumer Auto Receivables Funding 2023-B3 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | (40) | 20 | 0 | | Santander Consumer Auto Receivables Funding 2023-B4 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | (46) | 23 | 0 | | Santander Consumer Auto Receivables Funding 2023-B5 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Santander Consumer Auto Receivables Funding 2023-B6 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Santander Consumer Auto Receivables Funding 2024-B2 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Santander Consumer Auto Receivables Funding 2024-B3 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Santander Consumer Auto Receivables Funding 2025-B1 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Santander Consumer Auto Receivables Funding 2025-L1 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 0 | (14) | 0 | | Santander Consumer Auto Receivables Funding 2025-L2 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Santander Consumer Auto Receivables Funding 2025-L3 LLC | United States | 0.00% | 100.00% | | 100.00% | — | Inactive | 0 | 0 | 0 | | Santander Consumer Auto Receivables Funding 2025-L4 LLC | United States | 0.00% | 100.00% | | 100.00% | — | Inactive | 0 | 0 | 0 | 236 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Santander Consumer Bank | Canada | 0.00% | 100.00% | | 100.00% | — | Banking | 140 | 3 | 167 | | Santander Consumer Bank AG | Germany | 0.00% | 100.00% | | 100.00% | 100.00% | Banking | 3,588 | 187 | 5,345 | | Santander Consumer Bank AS | Norway | 0.00% | 100.00% | | 100.00% | 100.00% | Banking | 1,912 | 183 | 2,141 | | Santander Consumer Bank GmbH | Austria | 0.00% | 100.00% | | 100.00% | 100.00% | Banking | 584 | 39 | 363 | | Santander Consumer Bank S.A. | Poland | 0.00% | 100.00% | | 100.00% | 100.00% | Banking | 988 | 93 | 940 | | Santander Consumer Bank S.A. | Peru | 100.00% | 0.00% | | 100.00% | — | Banking | 187 | 25 | 160 | | Santander Consumer Bank S.p.A. | Italy | 0.00% | 100.00% | | 100.00% | 100.00% | Banking | 970 | 68 | 603 | | Santander Consumer Credit Services Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 1 | (1) | 0 | | Santander Consumer Finance Global Services, S.L. | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | IT | 6 | 4 | 5 | | Santander Consumer Finance Limitada | Chile | 49.00% | 34.24% | | 100.00% | 100.00% | Finance company | 120 | 27 | 65 | | Santander Consumer Finance México, S.A. de C.V., S.O.F.O.M., E.R., Grupo Financiero Santander México | Mexico | 0.00% | 99.98% | | 100.00% | 100.00% | Inactive | 2 | 0 | 2 | | Santander Consumer Finance Oy | Finland | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 488 | 20 | 159 | | Santander Consumer Finance Schweiz AG | Switzerland | 0.00% | 100.00% | | 100.00% | 100.00% | Leasing | 61 | (13) | 60 | | Santander Consumer Finance, S.A. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Banking | 9,109 | 612 | 10,039 | | Santander Consumer Financial Solutions Sp. z o.o. | Poland | 0.00% | 100.00% | | 100.00% | 100.00% | Leasing | (3) | 1 | 7 | | Santander Consumer Holding Austria GmbH | Austria | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 364 | 0 | 518 | | Santander Consumer Holding GmbH | Germany | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 5,564 | 83 | 6,077 | | Santander Consumer Lease Receivables 1 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | (20) | 3 | 0 | | Santander Consumer Leasing GmbH | Germany | 0.00% | 100.00% | | 100.00% | 100.00% | Leasing | 77 | 104 | 158 | 237 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Santander Consumer Leasing S.A. | France | 0.00% | 100.00% | | 100.00% | 100.00% | Renting | 3 | 0 | 3 | | Santander Consumer Mobility Services, S.A. | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Renting | 8 | (2) | 8 | | Santander Consumer Multirent Sp. z o.o. | Poland | 0.00% | 100.00% | | 100.00% | 100.00% | Leasing | 42 | 9 | 36 | | Santander Consumer Operations Services GmbH | Germany | 0.00% | 100.00% | | 100.00% | 100.00% | Services | 16 | 0 | 18 | | Santander Consumer Receivables 11 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 618 | 283 | 0 | | Santander Consumer Receivables 15 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | (8) | 75 | 0 | | Santander Consumer Receivables 16 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | (6) | 130 | 0 | | Santander Consumer Receivables 20 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 0 | (254) | 0 | | Santander Consumer Receivables 21 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Santander Consumer Receivables 7 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 726 | 164 | 0 | | Santander Consumer Receivables Funding LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 10 | 3 | 0 | | Santander Consumer Renting S.r.l. | Italy | 0.00% | 100.00% | | 100.00% | 100.00% | Renting | 12 | (5) | 18 | | Santander Consumer Renting, S.L. | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Renting | 47 | 2 | 41 | | Santander Consumer S.A. | Argentine | 0.00% | 99.82% | | 100.00% | 100.00% | Finance company | 15 | (3) | 13 | | Santander Consumer Services GmbH | Austria | 0.00% | 100.00% | | 100.00% | 100.00% | Services | 0 | 0 | 0 | | Santander Consumer Services, S.A. | Portugal | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 13 | 1 | 6 | | Santander Consumer Spain Auto 2019-1, Fondo de Titulización | Spain | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | 238 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Santander Consumer Spain Auto 2020-1, Fondo de Titulización | Spain | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | Santander Consumer Spain Auto 2021-1, Fondo de Titulización | Spain | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | Santander Consumer Spain Auto 2022-1, Fondo de Titulización | Spain | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | Santander Consumer Spain Auto 2023-1, Fondo de Titulización | Spain | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | Santander Consumer Spain Auto 2024-1, Fondo de Titulización | Spain | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | Santander Consumer Spain Auto 2025-1, Fondo de Titulización | Spain | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | Santander Consumer Technology Services GmbH | Germany | 0.00% | 100.00% | | 100.00% | 100.00% | IT services | 31 | 1 | 22 | | Santander Consumer USA Holdings Inc. | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 3,079 | 589 | 4,580 | | Santander Consumer USA Inc. | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 4,922 | 590 | 5,512 | | Santander Consumo 4, F.T. | Spain | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | Santander Consumo 5, F.T. | Spain | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | Santander Consumo 6, F.T. | Spain | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | Santander Consumo 7, F.T. | Spain | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | Santander Corredora de Seguros Limitada | Chile | 0.00% | 67.21% | | 100.00% | 100.00% | Insurance mediation | 19 | 3 | 14 | | Santander Corredores de Bolsa Limitada | Chile | — | 83.24% | | 100.00 | 100.00 | Securities company | 58 | 3 | 51 | | Santander Corretora de Câmbio e Valores Mobiliários S.A. | Brazil | — | 89.86% | | 100.00 | 100.00 | Securities company | 143 | 28 | 154 | | Santander Corretora de Seguros, Investimentos e Serviços S.A. | Brazil | — | 89.86% | | 100.00 | 100.00 | Insurance mediation | 665 | 325 | 887 | | Santander Customer Voice, S.A. | Spain | 99.50 | 0.50% | | 100.00 | 100.00 | Services | 9 | (10) | 0 | 239 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Santander de Titulización, S.G.F.T., S.A. | Spain | 81.00 | 19.00% | | 100.00 | 100.00 | Fund managem ent company | 5 | 5 | 2 | | Santander Distribuidora de Títulos e Valores Mobiliários S.A. | Brazil | — | 89.86% | | 100.00 | 100.00 | Securities company | 75 | 11 | 77 | | Santander Drive Auto Receivables LLC | United States | — | 100.00% | | 100.00 | 100.00 | Finance company | 0 | 0 | 0 | | Santander Drive Auto Receivables Trust 2022-2 | United States | — | (b) | | — | — | Securitizati on | (25) | 33 | 0 | | Santander Drive Auto Receivables Trust 2022-3 | United States | — | (b) | | — | — | Securitizati on | (41) | 26 | 0 | | Santander Drive Auto Receivables Trust 2022-4 | United States | — | (b) | | — | — | Securitizati on | (72) | 36 | 0 | | Santander Drive Auto Receivables Trust 2022-5 | United States | — | (b) | | — | — | Securitizati on | (102) | 37 | 0 | | Santander Drive Auto Receivables Trust 2022-6 | United States | — | (b) | | — | — | Securitizati on | (96) | 40 | 0 | | Santander Drive Auto Receivables Trust 2022-7 | United States | — | (b) | | — | — | Securitizati on | (45) | 24 | 0 | | Santander Drive Auto Receivables Trust 2023-1 | United States | — | (b) | | — | — | Securitizati on | (24) | 38 | 0 | | Santander Drive Auto Receivables Trust 2023-2 | United States | — | (b) | | — | — | Securitizati on | (47) | 56 | 0 | | Santander Drive Auto Receivables Trust 2023-3 | United States | — | (b) | | — | — | Securitizati on | (74) | 65 | 0 | | Santander Drive Auto Receivables Trust 2023-4 | United States | — | (b) | | — | — | Securitizati on | (78) | 53 | 0 | | Santander Drive Auto Receivables Trust 2023-5 | United States | — | (b) | | — | — | Securitizati on | (74) | 54 | 0 | | Santander Drive Auto Receivables Trust 2023-6 | United States | — | (b) | | — | — | Securitizati on | (62) | 47 | 0 | | Santander Drive Auto Receivables Trust 2024-1 | United States | — | (b) | | — | — | Securitizati on | (99) | 68 | 0 | | Santander Drive Auto Receivables Trust 2024-2 | United States | — | (b) | | — | — | Securitizati on | (149) | 103 | 0 | 240 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Santander Drive Auto Receivables Trust 2024-3 | United States | — | (b) | | — | — | Securitizati on | (182) | 127 | 0 | | Santander Drive Auto Receivables Trust 2024-4 | United States | — | (b) | | — | — | Securitizati on | (207) | 146 | 0 | | Santander Drive Auto Receivables Trust 2024-5 | United States | — | (b) | | — | — | Securitizati on | (182) | 119 | 0 | | Santander Drive Auto Receivables Trust 2025-1 | United States | — | (b) | | — | — | Securitizati on | 0 | (116) | 0 | | Santander Drive Auto Receivables Trust 2025-2 | United States | — | (b) | | — | — | Securitizati on | 0 | (134) | 0 | | Santander Drive Auto Receivables Trust 2025-3 | United States | — | (b) | | — | — | Securitizati on | 0 | (186) | 0 | | Santander Drive Auto Receivables Trust 2025-4 | United States | — | (b) | | — | — | Securitizati on | 0 | (218) | 0 | | Santander Empresa Administradora de Fondos Colectivos S.A. | Peru | 99% | 1.00% | | 100% | 100% | Investmen t company | 1 | (1) | 0 | | Santander Equity Investments Limited | United Kingdom | 0% | 100.00% | | 100% | 100% | Finance company | 94 | 5 | 34 | | Santander España Servicios Legales, S.L. | Spain | 99.97% | 0.03% | | 100.00% | 100.00% | Services | 9 | 0 | 8 | | Santander Estates Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Real estate | 7 | 0 | 7 | | Santander European Hospitality Opportunities | Luxembour g | 100.00% | 0.00% | | 100.00% | 100.00 | Investmen t fund | 33 | 0 | 30 | | Santander F24 S.A. | Poland | 0.00% | 58.70% | | 100.00% | 100.00% | Finance company | 3 | 0 | 2 | | Santander Facility Management España, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Real estate | 786 | 0 | 786 | | Santander Factoring S.A. | Chile | 0.00% | 99.86% | | 100.00% | 100.00% | Factoring | 9 | 0 | 9 | | Santander Factoring Sp. z o.o. | Poland | 0.00% | 58.70% | | 100.00% | 100.00% | Financial services | 78 | 11 | 1 | | Santander Factoring y Confirming, S.A. Unipersonal, E.F.C. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Factoring | 223 | 47 | 126 | 241 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Santander FI Hedge Strategies | Ireland | 0.00% | 89.86% | | 100.00% | 100.00% | Investmen t fund | 421 | 110 | 478 | | Santander Finance 2012-1 LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Financial services | 3 | 0 | 3 | | Santander Financial Exchanges Limited (j) | United Kingdom | 100.00% | 0.00% | | 100.00% | 100.00 | Inactive | 0 | 0 | 0 | | Santander Financial Services plc | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00 | Banking | 350 | 27 | 443 | | Santander Financiamientos S.A. | Peru | 100.00% | 0.00% | | 100.00% | 100.00 | Finance company | 34 | 0 | 34 | | Santander Financing S.A.S. | Colombia | 100.00% | 0.00% | | 100.00% | 100.00% | Financial advisory | 3 | 0 | 3 | | Santander Finanse Sp. z o.o. | Poland | 0.00% | 58.70% | | 100.00% | 100.00% | Financial services | 64 | 12 | 18 | | Santander Fundo de Investimento Amazonas Multimercado Crédito Privado Investimento no Exterior (o) | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investmen t fund | 440 | 64 | 453 | | Santander Fundo de Investimento Diamantina Multimercado Crédito Privado Investimento no Exterior (h) | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investmen t fund | 776 | 142 | 824 | | Santander Fundo de Investimento Guarujá Multimercado Crédito Privado Investimento no Exterior | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investmen t fund | 150 | 14 | 148 | | Santander Gestión de Recaudación y Cobranzas Ltda. | Chile | 0.00% | 99.86% | | 100.00% | 100.00% | Financial services | 8 | 1 | 9 | | Santander Global Cards & Digital Solutions Brasil S.A. | Brazil | 0.00% | 100.00% | | 100.00% | 100.00% | IT consulting | 85 | 4 | 93 | | Santander Global Cards & Digital Solutions, S.L. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | IT services | 222 | 1 | 222 | | Santander Global Consumer Finance Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 7 | 0 | 7 | | Santander Global Facilities, S.A. de C.V. | Mexico | 100.00% | 0.00% | | 100.00% | 100.00% | Services | 167 | 8 | 174 | | Santander Global Services S.A. (j) | Uruguay | 0.00% | 100.00% | | 100.00% | 100.00% | Services | 0 | 0 | 0 | | Santander Global Services, S.L. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Real estate | 7 | 1 | 7 | | Santander Global Technology and Operations Brasil Ltda. | Brazil | 0.00% | 100.00% | | 100.00% | 100.00 | IT services | 26 | 0 | 18 | | Santander Global Technology and Operations Chile Limitada | Chile | 0.00% | 100.00% | | 100.00% | 100.00% | IT services | 5 | 1 | 6 | 242 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Santander Global Technology and Operations, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00 | IT services | 694 | 15 | 668 | | Santander Green Investment, S.L. | Spain | 99.97% | 0.03% | | 100.00% | 100.00 | Holding company | 139 | 1 | 135 | | Santander Group Properties, S.L. Unipersonal | Spain | 100.00 | 0.00% | | 100.00 | 100.00 | Holding company | 1,100 | 5 | 1,077 | | Santander Guarantee Company (j) | United Kingdom | — | 100.00% | | 100.00 | 100.00 | Inactive | 0 | 0 | 0 | | Santander Hera Renda Fixa Fundo Incentivado de Investimento em Infraestrutura Responsabilidade Limitada | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investmen t fund | 2,779 | 212 | 2,688 | | Santander Hermes Multimercado Crédito Privado Infraestructura Fundo de Investimento | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Investmen t fund | 169 | 9 | 160 | | Santander Hipotecario 2 Fondo de Titulización de Activos | Spain | 0.00% | (b) | | 0.00% | 0.00% | Securitizati on | 0 | 0 | 0 | | Santander Hipotecario 3 Fondo de Titulización de Activos | Spain | 0.00% | (b) | | 0.00% | 0.00% | Securitizati on | 0 | 0 | 0 | | Santander Holding Imobiliária S.A. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Real estate | 64 | 6 | 63 | | Santander Holding Internacional, S.A. | Spain | 99.95% | 0.05% | | 100.00% | 100.00% | Holding company | 4,271 | 96 | 2,506 | | Santander Holdings USA, Inc. | United States | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 13,865 | 1,399 | 14,425 | | Santander Inclusión Financiera, S.A. de C.V., S.O.F.O.M., E.R., Grupo Financiero Santander México | Mexico | 0.00% | 99.98% | | 100.00% | 100.00% | Finance company | 8 | 2 | 9 | | Santander Insurance Agency, U.S., LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Insurance mediation | 1 | 0 | 1 | | Santander Insurance Services UK Limited | United Kingdom | 100.00% | 0.00% | | 100.00% | 100.00 | Wealth managem ent | 827 | (588) | 543 | | Santander Insurance, S.L. | Spain | 100.00% | 0.00% | | 100.00% | 100.00 | Holding company | 2,433 | 478 | 2,440 | | Santander Intermediación Correduría de Seguros, S.A. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Insurance mediation | 25 | 5 | 18 | | Santander International Products, Plc. (l) | Ireland | 99.99% | 0.01% | | 100.00% | 100.00% | Finance company | 1 | 0 | 0 | 243 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Santander International Wealth Management México, S. de R.L. de C.V. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Advisory services | 3 | (2) | 2 | | Santander International Wealth Solutions LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 0 | 0 | 0 | | Santander Inversiones S.A. | Chile | 5.12% | 94.88% | | 100.00% | 100.00% | Holding company | 1,574 | 279 | 1,051 | | Santander Investment Chile Limitada | Chile | 16.12% | 83.88% | | 100.00% | 100.00% | Finance company | 305 | 11 | 308 | | Santander Investment, S.A. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Banking | 1,316 | 429 | 245 | | Santander Investments GP 1 S.à.r.l. | Luxembour g | 0.00% | 100.00% | | 100.00% | 100.00 | Fund managem ent company | 1 | 0 | 1 | | Santander Inwestycje Sp. z o.o. | Poland | 0.00% | 58.70% | | 100.00% | 100.00% | Securities company | 0 | 0 | 0 | | Santander ISA Managers Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Managem ent of funds and portfolios | 45 | 6 | 6 | | Santander Lease, S.A., E.F.C. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Leasing | 56 | 3 | 51 | | Santander Leasing AB | Sweden | 0.00% | 100.00% | | 100.00% | 100.00% | Leasing and renting | 13 | 2 | 22 | | Santander Leasing B.V. | Netherlands | 0.00% | 100.00% | | 100.00% | 100.00% | Renting | 13 | 0 | 21 | | Santander Leasing S.A. | Poland | 0.00% | 58.70% | | 100.00% | 100.00% | Leasing | 210 | 13 | 35 | | Santander Leasing S.A. Arrendamento Mercantil | Brazil | 0.00% | 89.86% | | 100.00% | 100.00 | Leasing | 1,458 | 129 | 1,426 | | Santander Leasing, LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Leasing | (2) | (10) | 0 | | Santander Lending Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Mortgage credit company | 278 | 13 | 291 | | Santander Mediación Operador de Banca- Seguros Vinculado, S.A. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Insurance mediation | 52 | 1 | 3 | | Santander Merchant S.A. | Argentine | 5.10% | 94.90% | | 100.00% | 100.00% | Finance company | 2 | 1 | 2 | 244 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Santander Mortgage Asset Depositor LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 0 | 0 | 0 | | Santander Mortgage Asset Receivable Trust 2025-CES1 | United States | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | Santander Mortgage Asset Receivable Trust 2025-NQM1 | United States | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | Santander Mortgage Asset Receivable Trust 2025-NQM2 | United States | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | Santander Mortgage Asset Receivable Trust 2025-NQM3 | United States | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | Santander Mortgage Asset Receivable Trust 2025-NQM4 | United States | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | Santander Mortgage Asset Receivable Trust 2025-NQM5 | United States | 0.00% | (b) | | 0.00% | 0.00% | Securitizati on | 0 | 0 | 0 | | Santander Mortgage Asset Receivable Trust 2025-NQM6 | United States | 0.00% | (b) | | 0.00% | 0.00% | Securitizati on | 0 | 0 | 0 | | Santander Mortgage Asset Receivable Trust 2026-NQM1 | United States | 0.00% | (b) | | 0.00% | 0.00% | Inactive | 0 | 0 | 0 | | Santander Mortgage Holdings Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | (2) | 2 | 0 | | Santander New Business, S.A. | Spain | 99.00% | 1.00% | | 100.00% | 100.00% | Trade intermedia ry | 3 | 0 | 2 | | Santander Paraty Qif PLC | Ireland | 0.00% | 89.86% | | 100.00% | 100.00% | Investmen t company | 421 | 110 | 478 | | Santander Pensiones, S.A., E.G.F.P. | Spain | 0.00% | 100.00% | | 100.00% | 100.00 | Pension fund managem ent company | 57 | 17 | 152 | | Santander Prime Auto Issuance Notes 2018- A Designated Activity Company (j) | Ireland | — | (b) | | — | — | Inactive | 0 | 0 | 0 | | Santander Prime Auto Issuance Notes 2018- B Designated Activity Company (j) | Ireland | — | (b) | | — | — | Inactive | 0 | 0 | 0 | | Santander Prime Auto Issuance Notes 2018-C Designated Activity Company (j) | Ireland | — | (b) | | — | — | Inactive | 0 | 0 | 0 | | Santander Prime Auto Issuance Notes 2018- D Designated Activity Company (j) | Ireland | — | (b) | | — | — | Inactive | 0 | 0 | 0 | 245 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Santander Prime Auto Issuance Notes 2018-E Designated Activity Company (j) | Ireland | — | (b) | | — | — | Inactive | 0 | 0 | 0 | | Santander Private Banking S.p.A. in Liquidazione (j) | Italy | 100.00% | 0.00% | | 100.00% | 100.00% | Finance company | 14 | 0 | 8 | | Santander Private Banking UK Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 296 | 174 | 399 | | Santander Private Real Estate Advisory, S.A. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Real estate | 20 | 6 | 26 | | Santander Real Estate Debt 1 sub-fund | Luxembourg | 100.00% | 0.00% | | 100.00% | 100.00% | Investmen t fund | 103 | 6 | 100 | | Santander Real Estate Equity I, F.C.R. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Venture capital fund | 19 | 0 | 19 | | Santander Real Estate, S.A. | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Inactive | 1 | 0 | 1 | | Santander Retail Auto Lease Funding LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 0 | 0 | 0 | | Santander RMBS 6, Fondo de Titulización | Spain | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | Santander S.A. Sociedad Securitizadora | Chile | 0.00% | 67.25% | | 100.00% | 100.00% | Fund managem ent company | 1 | 0 | 1 | | Santander SBAC II Renda Fixa Curto Prazo - Classe de Investimento em Cotas de Fundo de Investimento Financeiro Responsabilidade Limitada | Brazil | 0.00% | 89.86% | | 100.00% | — | Investmen t fund | 1,750 | 242 | 1,770 | | Santander Secretariat Services Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Santander Securities LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Securities company | 25 | 6 | 31 | | Santander Seguros y Reaseguros, Compañía Aseguradora, S.A. | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Insurance | 676 | 164 | 914 | | Santander Services Solutions, S.L. | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Payment services | 15 | (2) | 14 | | Santander Servicios Corporativos, S.A. de C.V. | Mexico | 0.00% | 99.98% | | 100.00% | 100.00% | Services | 14 | 0 | 15 | 246 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Santander Servicos Digitais Brasil Ltda. | Brazil | 0.00% | 100.00% | | 100.00% | 0.00% | IT services | 23 | 2 | 23 | | Santander Sociedade de Crédito, Financiamento e Investimento S.A. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Finance company | 289 | 441 | 655 | | Santander Technology USA, LLC | United States | 0.00 | 100.00% | | 100.00% | 100.00% | IT services | 47 | 0 | 47 | | Santander Tecnología Argentina S.A. | Argentine | 0.00% | 99.83% | | 100.00% | 100.00% | IT services | 7 | 6 | 10 | | Santander Tecnología México, S.A. de C.V. | Mexico | 0.00% | 99.98% | | 100.00% | 100.00% | IT services | 52 | 0 | 52 | | Santander Totta Seguros, Companhia de Seguros de Vida, S.A. | Portugal | 0.00 | 100.00% | | 100.00% | 100.00% | Insurance | 99 | 27 | 246 | | Santander Towarzystwo Funduszy Inwestycyjnych S.A. | Poland | 50.00% | 29.35% | | 100.00% | 100.00% | Fund managem ent company | 4 | 33 | 172 | | Santander Trade Services Limited | Hong-Kong | — | 100.00% | | 100.00% | 100.00% | Inactive | 24 | 1 | 16 | | Santander Trust S.A. | Argentine | — | 100.00% | | 100.00% | 100.00% | Services | 0 | 0 | 0 | | Santander UK Group Holdings plc | United Kingdom | 77.67% | 22.33% | | 100.00% | 100.00% | Holding company | 15,277 | 192 | 19,046 | | Santander UK Investments | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 114 | (2) | 114 | | Santander UK Operations Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 7 | 0 | 0 | | Santander UK plc | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Banking | 12,746 | 2,167 | 15,039 | | Santander UK Technology Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | IT services | 25 | 0 | 6 | | Santander US Capital Markets LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Securities investmen t | 904 | 53 | 957 | | Santander Valores S.A. | Argentine | 5.10% | 94.73% | | 100.00% | 100.00% | Securities company | 30 | 11 | 42 | | Santusa Holding, S.L. | Spain | 69.76% | 30.24% | | 100.00% | 100.00% | Holding company | 10,589 | 495 | 6,525 | 247 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | SBNA Auto Lease Funding LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | (58) | (87) | 0 | | SBNA Auto Lease Trust 2023-A | United States | — | (b) | | — | — | Securitizati on | (31) | (23) | 0 | | SBNA Auto Lease Trust 2024-A | United States | — | (b) | | — | — | Securitizati on | (18) | (26) | 0 | | SBNA Auto Lease Trust 2024-B | United States | — | (b) | | — | — | Securitizati on | (12) | (30) | 0 | | SBNA Auto Lease Trust 2024-C | United States | — | (b) | | — | — | Securitizati on | 4 | (8) | 0 | | SBNA Auto Lease Trust 2025-A | United States | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | SBNA Auto Lease Trust 2025-B | United States | — | (b) | | — | — | Inactive | 0 | 0 | 0 | | SBNA Auto Receivables Funding LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 2 | 3 | 4 | | SBNA Auto Receivables Grantor Trust 2025-SF1 | United States | — | (b) | | — | — | Inactive | 0 | 0 | 0 | | SBNA Auto Receivables Trust 2025-SF1 | United States | — | (b) | | — | — | Inactive | 0 | 0 | 0 | | SBNA Investor LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 795 | 119 | 914 | | SC Austria Auto Finance 2020-1 Designated Activity Company | Ireland | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | SC Austria Consumer Loan 2021 Designated Activity Company | Ireland | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | SC Austria S.à r.l. | Luxembourg | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | SC Austria S.à r.l., Compartment Consumer 2025-1 | Luxembourg | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | SC Canada Asset Securitization Trust | Canada | — | (b) | | — | — | Securitizati on | 2 | 4 | 0 | | SC Germany Auto 2019-1 UG (haftungsbeschränkt) (j) | Germany | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | 248 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | SC Germany S.A. | Luxembourg | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | SC Germany S.A., Compartment Consumer 2020-1 | Luxembourg | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | SC Germany S.A., Compartment Consumer 2021-1 | Luxembourg | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | SC Germany S.A., Compartment Consumer 2022-1 | Luxembourg | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | SC Germany S.A., Compartment Consumer 2023-1 | Luxembourg | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | SC Germany S.A., Compartment Consumer 2024-1 | Luxembourg | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | SC Germany S.A., Compartment Consumer 2024-2 | Luxembourg | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | SC Germany S.A., Compartment Consumer 2025-1 | Luxembourg | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | SC Germany S.A., Compartment Consumer 2025-2 | Luxembourg | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | SC Germany S.A., Compartment Consumer Private 2023-1 | Luxembourg | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | SC Germany S.A., Compartment Leasing 2023-1 | Luxembourg | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | SC Germany S.A., Compartment Leasing 2025-1 | Luxembourg | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | SC Germany S.A., Compartment Mobility 2020-1 | Luxembourg | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | SC Mobility AB | Sweden | 0.00% | 100.00% | | 100.00% | 100.00% | Renting | 0 | 0 | 0 | | SC Mobility AS | Norway | 0.00% | 100.00% | | 100.00% | 100.00% | Renting | 32 | 0 | 33 | | SC Nordics S.à r.l. | Luxembourg | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | SC Nordics S.à r.l. , Compartment Rahoituspalvelut 2025 | Luxembourg | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | 249 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | SC Poland Consumer 23-1 Designated Activity Company | Ireland | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | SCF Ajoneuvohallinto IX Limited (j) | Ireland | — | (b) | | — | — | Securitizati on | — | — | — | | SCF Ajoneuvohallinto X Limited | Ireland | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | SCF Ajoneuvohallinto XI Limited | Ireland | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | SCF Ajoneuvohallinto XII Limited | Irlanda | — | (b) | | — | — | Titulizació n | 0 | 0 | 0 | | SCF Ajoneuvohallinto XIII Limited | Ireland | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | SCF Eastside Locks GP Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Real estate managem ent | 0 | 0 | 0 | | SCF Rahoituspalvelut IX DAC (j) | Ireland | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | SCF Rahoituspalvelut X DAC | Ireland | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | SCF Rahoituspalvelut XI Designated Activity Company | Ireland | — | (b) | | — | — | Securitizati on | (15) | 0 | 0 | | SCF Rahoituspalvelut XII DAC | Ireland | — | (b) | | — | — | Securitizati on | (1) | 0 | 0 | | SCF Rahoituspalvelut XIII DAC | Ireland | — | (b) | | — | — | Securitizati on | 3 | 0 | 0 | | SCM Poland Auto 2019-1 DAC | Ireland | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | SDMX Superdigital, S.A. de C.V., Institución de Fondos de Pago Electrónico | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Payment platform | 1 | (1) | 0 | | Secucor Finance 2021-1, DAC (j) | Ireland | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | Secucor Finance 2025-1 Designated Activity Company | Ireland | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | Services and Promotions Delaware Corporation | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 125 | 0 | 198 | | Services and Promotions Miami LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Real estate | 126 | 0 | 126 | 250 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Servicios de Cobranza, Recuperación y Seguimiento, S.A. de C.V. | Mexico | 0.00% | 100.00% | | 100.00% | 100.00% | Finance company | 38 | 0 | 40 | | Servicios Inmobiliarios Residencial en Venta JV2, S.L. | Spain | 0.00% | 27.57% | | 27.57% | 90.00% | Real estate | 10 | 0 | 3 | | Sheppards Moneybrokers Limited | United Kingdom | 0.00% | 100.00% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Shiloh III Wind Project, LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Renewable energies | 327 | 5 | 333 | | Silk Finance No. 5 | Portugal | — | (b) | | — | — | Securitizati on | 25 | (5) | 0 | | Silk Finance No. 6 | Portugal | — | (b) | | — | — | Securitizati on | 0 | 8 | 0 | | Sociedad Integral de Valoraciones Automatizadas, S.A. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Appraisals | 2 | 0 | 1 | | Sociedad Operadora de Tarjetas de Pago Santander Getnet Chile S.A. | Chile | 0.00% | 67.13% | | 100.00% | 100.00% | Payments and collection services | 1 | 47 | 32 | | Socur S.A. (f) | Uruguay | 100.00% | 0.00% | | 100.00% | 100.00% | Finance company | 69 | 19 | 58 | | Solution 4Fleet Consultoria Empresarial S.A. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Vehicle rental | 1 | 0 | 1 | | Sovereign Community Development Company | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 42 | 1 | 43 | | Sovereign Delaware Investment Corporation | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 146 | 5 | 151 | | Sovereign Lease Holdings, LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Financial services | 228 | 5 | 233 | | Sovereign REIT Holdings, Inc. | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 8,060 | 268 | 8,328 | | SPIRE SA Compartment 2025-148 | Luxembourg | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | SSA Swiss Advisors AG | Switzerland | 0.00% | 100.00% | | 100.00% | 100.00% | Wealth managem ent | 2 | 0 | 4 | | Stellantis Consumer Financial Services Polska Sp. z o.o. | Poland | 0.00% | 50.00% | | 100.00% | 100.00% | Finance company | 5 | 2 | 1 | 251 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Stellantis Financial Services Belux SA | Belgium | 0.00% | 50.00% | | 100.00% | 100.00% | Finance company | 101 | 11 | 57 | | Stellantis Financial Services España, E.F.C., S.A. | Spain | 0.00% | 50.00% | | 50.00% | 50.00% | Finance company | 401 | (21) | 190 | | Stellantis Financial Services Italia S.p.A. | Italy | 0.00% | 50.00% | | 50.00% | 50.00% | Banking | 807 | 112 | 293 | | Stellantis Financial Services Nederland B.V. | Netherlands | 0.00% | 50.00% | | 100.00% | 100.00% | Finance company | 80 | 15 | 39 | | Stellantis Financial Services Polska Sp. z o.o. | Poland | 0.00% | 50.00% | | 50.00% | 50.00% | Finance company | 74 | 13 | 17 | | Stellantis Renting Italia S.p.A. | Italy | 0.00% | 50.00% | | 100.00% | 100.00% | Renting | 11 | 5 | 3 | | Sterrebeeck B.V. | Netherlands | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 6,373 | 515 | 10,860 | | Suleyado 2003, S.L. Unipersonal | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Securities investmen t | 34 | 0 | 31 | | Superdigital Holding Company, S.L. | Spain | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 28 | (4) | 24 | | Superdigital Logística S.A. | Brazil | 0.00% | 100.00% | | 100.00% | 100.00% | Payment services | 6 | (1) | 5 | | Suzuki Servicios Financieros, S.L. | Spain | 0.00% | 51.00% | | 51.00% | 51.00% | Intermedia tion | 16 | 2 | 8 | | Swesant SA | Switzerland | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 323 | (3) | 0 | | Tabasco Energía España, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Holding company | 7 | 0 | 7 | | Taxos Luz, S.L. Unipersonal | Spain | 0.00% | 70.00% | | 100.00% | 100.00% | Renewable energies | 3 | 0 | 11 | | Teatinos Siglo XXI Inversiones S.A. | Chile | 50.00% | 50.00% | | 100.00% | 100.00% | Holding company | 1,521 | 333 | 2,167 | | Terras Fundo de Investimento nas Cadeias Produtivas do Agronegocio - Fiagro - Resp Limitada | Brazil | 0.00% | 89.86% | | 100.00% | 0.00% | Investmen t fund | 2 | 0 | 1 | | The Best Specialty Coffee, S.L. Unipersonal | Spain | 100.00% | 0.00% | | 100.00% | 100.00% | Restaurant services | 3 | 0 | 3 | 252 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | TIMFin S.p.A. | Italy | 0.00% | 51.00% | | 51.00% | 51.00% | Finance company | 63 | 4 | 38 | | Titularizadora Colombiana S.A. - Universalidad TIV V9 | Colombia | — | (b) | | — | — | Securitizati on | 0 | 0 | 0 | | Tonopah Solar I, LLC | United States | 0.00% | 100.00% | | 100.00% | 100.00% | Holding company | 5 | 0 | 5 | | Tools Soluções e Serviços Compartilhados Ltda. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Services | 31 | 4 | 31 | | Tornquist Asesores de Seguros S.A. (j) | Argentine | 0.00% | 99.99% | | 99.99% | 99.99% | Inactive | 0 | 0 | 0 | | Toro Corretora de Títulos e Valores Mobiliários S.A. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Securities company | 62 | (1) | 55 | | Toro Investimentos S.A. | Brazil | 0.00% | 89.86% | | 100.00% | 100.00% | Securities company | 43 | (2) | 36 | | Totta (Ireland), PLC | Ireland | 0.00% | 99.87% | | 100.00% | 100.00% | Finance company | 451 | 11 | 450 | | Totta Urbe - Empresa de Administração e Construções, S.A. | Portugal | 0.00% | 99.87% | | 100.00% | 100.00 | Real estate | 88 | 1 | 89 | | Trainera Venture Finance I, F.C.R.-PYME | Spain | 99.00% | 0.00% | | 99.00% | 99.00% | Venture capital fund | 21 | 2 | 20 | | Trans Skills Employment Services - Sole Proprietorship LLC | Arab United Emirates | 0.00% | 66.43% | | 100.00% | 100.00% | Human resources services | 0 | 1 | 2 | | Trans Skills Employment Services Malaysia SDN. BHD. | Malaysia | 0.00% | 66.43% | | 100.00% | — | Services | 0 | 0 | 0 | | Trans Skills Employment Services Vietnam Company Limited | Vietnam | 0.00% | 66.43% | | 100.00% | 0.00% | Consulting services | 0 | 0 | 0 | | Trans Skills General Supplies Egypt LLC | Egypt | 0.00% | 66.43% | | 100.00% | — | Consulting services | 0 | 0 | 0 | | Trans Skills Information Technology LLC | Saudi Arabia | 0.00% | 66.43% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Trans Skills Investment in Commercial Enterprises & Management Co. LLC | Arab United Emirates | 0.00% | 66.43% | | 100.00% | 100.00% | Holding company | 1 | 0 | 7 | | Trans Skills Services SPC | Oman | 0.00% | 66.43% | | 100.00% | —% | Consulting | 0 | 0 | 0 | 253 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Trans Skills South Africa (Pty) Limited | Republic of South Africa | 0.00% | 66.43% | | 100.00% | 100.00% | Inactive | 0 | 0 | 0 | | Trans Skills Technology Services LLC | Arab United Emirates | 0.00% | 66.43% | | 100.00% | 100.00% | IT services | 0 | (3) | 0 | | Transolver Finance EFC, S.A. | Spain | 0.00% | 51.00% | | 51.00% | 51.00% | Leasing | 76 | 6 | 17 | | Transskills Employer Services Private Limited | India | 0.00% | 66.43% | | 100.00% | 100.00% | Consulting services | 0 | 0 | 0 | | Tresmares Capital Corporate S.L. | Spain | 89.90% | 0.00% | | 89.90% | — | Holding company | 2 | 2 | 21 | | Tresmares Capital Deutschland GmbH | Germany | 0.00% | 89.90% | | 100.00% | — | Finance company | 0 | 0 | 0 | | Tresmares Capital UK Limited | United Kingdom | 0.00% | 89.90% | | 100.00% | — | Fund managem ent company | 1 | 1 | 1 | | Tresmares Direct Lending, S.G.E.I.C, S.A. | Spain | 0.00% | 89.90% | | 100.00% | — | Fund managem ent company | 3 | 3 | 2 | | Tresmares Growth Fund II, S.C.R., S.A. | Spain | 40.00% | 0.00% | 40.00 | 40.00% | 40.00% | Holding company | 72 | 6 | 39 | | Tresmares Growth Fund III, S.C.R., S.A. | Spain | 40.00% | 0.00% | 40.00 | 40.00% | 40.00% | Holding company | 55 | 4 | 30 | | Tresmares Growth Fund Santander, S.C.R., S.A. | Spain | 100.00% | 0.00% | 100.00 | 100.00% | 100.00% | Holding company | 139 | (3) | 131 | | Tresmares Private Equity, S.G.E.I.C, S.A. | Spain | 0.00% | 89.90% | 100.00 | — | — | Fund managem ent company | 1 | 4 | 1 | | Tresmares Santander Direct Lending, SICC, S.A. | Spain | 99.67% | 0.00% | 99.67 | 99.67% | 99.67% | Fund managem ent company | 1,419 | 69 | 1,410 | | TS HR & Payroll Services Morocco SARL AU | Morocco | 0.00% | 66.43% | 100.00 | 100.00% | — | Consultin g services | 0 | 0 | 0 | | TVG-Trappgroup Versicherungsvermitt lungs-GmbH (d) | Germany | 0.00% | 90.01% | 100.00 | 100.00% | 100.00% | Insurance brokerage | 0 | 0 | 2 | | Universia Brasil S.A. | Brazil | 0.00% | 100.00% | 100.00 | 100.00% | 100.00% | Internet | 0 | 0 | 0 | | Universia Chile S.A. | Chile | 0.00% | 86.84% | 86.84 | 86.84% | 86.84% | Internet | 1 | 0 | 0 | | Universia Colombia S.A.S. | Colombia | 0.00% | 100.00% | 100.00 | 100.00% | 100.00% | Internet | 0 | 0 | 0 | | Universia España Red de Universidades, S.A. | Spain | 0.00% | 89.43% | 89.43 | 89.43% | 89.43% | Internet | 3 | 0 | 2 | | Universia Holding, S.L. | Spain | 100.00% | 0.00% | 100.00 | 100.00% | 100.00% | Holding company | 18 | 0 | 18 | | Universia México, S.A. de C.V. | Mexico | 0.00% | 100.00% | 100.00 | 100.00% | 100.00% | Internet | 1 | 0 | 1 | | Universia Perú, S.A. | Peru | 0.00% | 99.73% | | 99.73% | 99.64% | Internet | 0 | 0 | 0 | 254 | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | Subsidiaries of Banco Santander, S.A. 1 | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (k) | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Capital + reserves | Net results | Carrying amount | | Universia Uruguay, S.A. | Uruguay | 0.00% | 100.00% | 100.00 | 100.00% | 100.00% | Internet | 0 | 0 | 0 | | Uro Property Holdings, S.A. (e) | Spain | 0.00% | 0.00% | — | 99.99% | 99.99% | Real estate investme nt | — | — | — | | VERT-11 Companhia Securitizadora de Créditos Financeiros | Brazil | — | (b) | — | — | — | Securitiza tion | 0 | 0 | 0 | | Wallcesa, S.A. | Spain | 100.00% | 0.00% | 100.00 | 100.00% | 100.00% | Financial services | (914) | 17 | 0 | | WIM Servicios Corporativos, S.A. de C.V. | Mexico | 0.00% | 100.00% | 100.00% | 100.00% | 100.00% | Advisory services | 1 | 0 | 0 | | WTW Shipping Designated Activity Company | Ireland | 100.00% | 0.00% | 100.00% | 100.00% | 100.00% | Leasing | 20 | 0 | 9 | a. Amount according to the provisional books of each company as of the date of publication of these annexes, generally referring to 31 December 2025 without considering, where appropriate, interim dividends that have been made during the year. In the book value (net provision cost), the percentage of ownership of the Group has been applied to the figure of each of the holding companies, without considering the impairment of goodwill made in the consolidation process. The data for foreign companies are converted into euros at the exchange rate at the end of the year. b. Companies over which effective control is maintained. c. Data as at 31 December 2024, latest available accounts. d. Data as at 31 March 2025, latest accounts available. e. Accounting merged company, Pending registration. f. Data as at 30 September 2025, last accounts available. g. Data as at 30 April 2025, last accounts available. h. Data as at 31 July 2025, last accounts available. i. Companies in liquidation. Pending registration. j. Company in liquidation as at 31 December 2025. k. Pursuant to Article 3 of Royal Decree 1159/ 2010, of 17 September, approving the rules for the preparation of consolidated annual accounts, in order to determine the voting rights, voting rights held directly by the parent company have been added to those held by companies controlled by the parent company or by other persons acting in their own name but on behalf of a Group company. For these purposes, the number of votes corresponding to the parent company, in relation to the companies indirectly dependent on it, is that corresponding to the dependent company that directly participates in the share capital of the latter. l. Company resident for tax purposes in Spain. m. Data as at 30 June 2021, latest available accounts. n. Company resident for tax purposes in the United Kingdom. o. Data as at 28 February 2025, latest available accounts. (1) Companies issuing preference shares are listed in Annex III, together with other relevant information. 255 #### Appendix II | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | Societies of which Grupo Santander owns more than 5% (g) , entities associated with Grupo Santander and jointly controlled entities | | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (f) | | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Type of company | Asset | Capital + reserves | Net results | | Administrador Financiero de Transantiago S.A. | Chile | 0.00% | 13.43% | | 20.00% | 20.00% | Payments and collection services | Associated | 59,000,000 | 8,000,000 | 2,000,000 | | Adprotel Strand, S.L. (consolidado) | Spain | 0.00% | 38.20% | | 38.20% | 38.20 | Real estate development | Associated | 693 | 622 | 26 | | Aegon Santander Portugal Não Vida - Companhia de Seguros, S.A. | Portugal | 0.00% | 49.00% | | 49.00% | 49.00% | Insurance | Joint ventures | 84 | 9 | 21 | | Aegon Santander Portugal Vida - Companhia de Seguros Vida, S.A. | Portugal | 0.00% | 49.00% | | 49.00% | 49.00% | Insurance | Joint ventures | 153 | 22 | 19 | | Aeroplan - Sociedade Construtora de Aeroportos, Lda. (e) | Portugal | 0.00% | 19.97% | | 20.00% | 20.00% | Inactive | — | 0 | 0 | 0 | | Agri Tech Investments Argentina S.A.U. | Argentine | 0.00% | 50.00% | | 50.00% | 0.00% | Financial services | — | 10 | 6 | 1 | | Aguas de Fuensanta, S.A. (e) (k) | Spain | 36.78% | 0.00% | | 36.78% | 36.78% | Food | — | — | — | — | | AHLC - Promoção Imobiliária, Lda. | Portugal | 0.00% | 35.00% | | 35.00% | 0.00% | Real estate development | Joint ventures | — | 0 | — | | Alcoaxarquía, S.L. | Spain | 0.00% | 16.00% | | 40.00% | — | Food | — | 25 | 6 | 2 | | Alma UK Holdings Ltd (consolidado) (b) | United Kingdom | 30.00% | 0.00% | | 30.00% | 30.00 | Holding company | Joint ventures | 3 | 2 | 4 | | Apolo Vault 1, S.L. | Spain | 0.00% | 25.00% | | 25.00% | 25.00 | Renewable energies | Joint ventures | 0 | 0 | 0 | | Aranguren Comercial de Embalaje, S.L. | Spain | 0.00% | 9.96% | | 24.90% | — | Industrial products | — | 38 | 11 | 2 | | Arneplant, S.L. | Spain | 0.00% | 11.36% | | 28.41% | — | Footwear and textiles | — | 46 | 22 | 2 | | Asesoría Informática Gallega, S.L. | Spain | 0.00% | 12.54% | | 31.34% | — | IT services | — | 4 | 0 | 2 | | Atitlan Agro I, S.C.R., S.A. (b) (n) | Spain | 42.54% | 0.00% | | 0.00% | 0.00% | Venture capital company | — | 123 | 114 | (5) | | Attijariwafa Bank Société Anonyme (consolidado) (b) | Morocco | 0.00% | 5.10% | | 5.10% | 5.10% | Banking | — | 67,801 | 4,942 | 887 | | AutoFi Inc. (b) | United States | 9.50% | 9.40% | | 4.99% | 4.99% | E-commerce | — | 19 | 19 | (7) | | Autopistas del Sol S.A. (b) | Argentine | 0.00% | 14.17% | | 14.17% | 14.17% | Highway concession | — | 232 | 191 | (54) | | Avanath Affordable Housing IV LLC (b) | United States | 0.00% | 7.27% | | 7.27% | 7.27% | Investment company | — | 411 | 405 | (35) | | Avanzare Innovación Tecnológica, S.L. | Spain | 0.00% | 12.66% | | 31.64% | 0.00% | Technology | — | 43 | 19 | 5 | | Axle 2023-1 Ltd | United Kingdom | 0.00% | (h) | | 0.00% | — | Securitization | Joint ventures | 689 | 2 | (5) | | Banco RCI Brasil S.A. | Brazil | 0.00% | 35.85% | | 39.89% | 39.89% | Banking | Joint ventures | 2,231 | 141 | 54 | | Banco S3 Caceis México, S.A., Institución de Banca Múltiple | Mexico | 0.00% | 50.00% | | 50.00% | 50.00% | Banking | Joint ventures | 245 | 112 | 15 | | Bank of Beijing Consumer Finance Company | China | 0.00% | 20.00% | | 20.00% | 20.00% | Finance company | Associated | 1,904 | 156 | 21 | | Bank of Shanghai Co., Ltd. (consolidado) (b) | China | 6.54% | 0.00% | | 6.54% | 6.54% | Banking | — | 392,042 | 28,022 | 2,863 | | Biomas – Serviços Ambientais, Restauração e Carbono S.A. | Brazil | 0.00% | 14.98% | | 16.67% | 16.67% | Consulting services | Associated | 7 | 9 | (6) | | Bizum, S.L. | Spain | 20.92% | 0.00% | | 20.92% | 20.92% | Payment services | Associated | 29 | 11 | 2 | | Campo Grande Empreendimentos Ltda. (k) (e) | Brazil | 0.00% | 22.75% | | 25.32% | 25.32% | Inactive | — | 0 | 0 | 0 | | CaptureNow Limited (q) | United Kingdom | 0.00% | 22.22% | | 22.22% | — | Software | — | 1 | 0 | 0 | | CCPT - ComprarCasa, Rede Serviços Imobiliários, S.A. | Portugal | 0.00% | 49.98% | | 49.98% | 49.98% | Real estate services | Joint ventures | 0 | 0 | 0 | 256 | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | Societies of which Grupo Santander owns more than 5% (g) , entities associated with Grupo Santander and jointly controlled entities | | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (f) | | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Type of company | Asset | Capital + reserves | Net results | | Centro de Compensación Automatizado S.A. | Chile | 0.00% | 22.38% | | 33.33% | 33.33% | Payments and collection services | Associated | 21 | 12 | 6 | | Centro para el Desarrollo, Investigación y Aplicación de Nuevas Tecnologías, S.A. (l) | Spain | 0.00% | 49.00% | | 49.00% | 49.00% | Technology | Associated | 3 | 3 | 0 | | Cicrosa Hidraúlica, S.L. | Spain | 0.00% | 13.20% | | 33.00% | 0.00% | Industrial supplies | — | 19 | 12 | 3 | | CIP S.A. | Brazil | 0.00% | 15.74% | | 17.52% | 17.52% | Financial services | Associated | 335 | 188 | 99 | | CNP Santander Insurance Europe Designated Activity Company | Ireland | 0.00% | 49.00% | | 49.00% | 49.00% | Insurance | Associated | 1,475 | 229 | 56 | | CNP Santander Insurance Life Designated Activity Company | Ireland | 0.00% | 49.00% | | 49.00% | 49.00% | Insurance | Associated | 798 | 63 | 44 | | CNP Santander Insurance Services Ireland Limited | Ireland | 0.00% | 49.00% | | 49.00% | 49.00% | Services | Associated | 16 | 0 | 0 | | Companhia Promotora UCI | Brazil | 0.00% | 25.00% | | 25.00% | 25.00% | Financial services | Joint ventures | 0 | 0 | 0 | | Compañia Española de Financiación de Desarrollo, Cofides, S.A., SME (b) | Spain | 20.18% | 0.00% | | 20.18% | 20.17% | Finance company | — | 244 | 213 | 25 | | Compañía Española de Seguros de Crédito a la Exportación, S.A., Compañía de Seguros y Reaseguros (consolidado) (b) | Spain | 23.33% | 0.55% | | 23.88% | 23.88% | Credit insurance | — | 1,432 | 570 | 64 | | Compañía Española de Viviendas en Alquiler, S.A. (consolidado) | Spain | 24.07% | 0.00% | | 24.07% | 24.07% | Real estate | Associated | 626 | 416 | 23 | | Compañía para los Desarrollos Inmobiliarios de la Ciudad de Hispalis, S.L., en liquidación (d) (e) | Spain | 21.98% | 0.00% | | 21.98% | 21.98% | Real estate development | — | 38 | (325) | 0 | | Connecting Visions Ecosystems, S.L. | Spain | 29.96% | 0.00% | | 29.96% | 37.56% | Consulting services | Joint ventures | 2 | 1 | 0 | | Construtora Tenda S/A (b) | Brazil | 4.92% | 4.05% | | 9.43% | 0.00% | Real estate | — | 828 | 147 | 16 | | Corkfoc Cortiças, S.A. (c) | Portugal | 0.00% | 27.54% | | 27.58% | 27.58% | Cork industry | — | 3 | 20 | 0 | | CSD Central de Serviços de Registro e Depósito Aos Mercados Financeiro e de Capitais S.A. | Brazil | 0.00% | 16.12% | | 17.94% | 20.00% | Financial services | Associated | 43 | 42 | 0 | | Decus Real Estate, S.L. | Spain | 0.00% | 30.00% | | 30.00% | 30.00% | Real estate | Joint ventures | 88 | 76 | 0 | | Delos Financial Technologies, Inc. (b) | United States | 0.00% | 22.84% | | 22.84% | 0.00% | Finance company | — | 2 | 3 | (1) | | DoRes Securitisation S.r.l | Italy | — | (h) | | — | — | Securitization | Joint ventures | 0 | 0 | 0 | | Ebora 220, S.L. | Spain | 0.00% | 44.00% | | 50.00% | 0.00% | Renewable energies | Joint ventures | 2 | 2 | 0 | | Ebora Evacuación, S.L. | Spain | 0.00% | 50.00% | | 50.00% | 0.00% | Renewable energies | Joint ventures | 1 | 1 | 0 | | Elaia Agro, S.L. (b) | Spain | 49.99% | 0.00% | | 49.99% | 49.99% | Consulting services | Associated | 5 | 4 | 0 | | Ethias Lease N.V. | Belgium | 0.00% | 50.00% | | 50.00% | 50.00% | Leasing | Associated | 76 | 9 | (7) | | Euro Automatic Cash Entidad de Pago, S.L. | Spain | 50.00% | 0.00% | | 50.00% | 50.00% | Payment services | Associated | 42 | 21 | 1 | | European Hospitality Opportunities S.à r.l. (b) | Luxembourg | 0.00% | 49.00% | | 49.00% | 49.00% | Holding company | Joint ventures | 55 | 16 | 0 | | Evacuación Liquesun, S.L. | Spain | 0.00% | 35.00% | | 50.00% | 50.00% | Electricity production | Joint ventures | 1 | 1 | 0 | | Evolve SPV S.r.l. | Italy | — | (h) | | — | — | Securitization | Joint ventures | 55 | 0 | 0 | | Exam Papers Plus Ltd | United Kingdom | 0.00% | 25.00% | | 25.00% | 0.00% | Commerce | Associated | 6 | 3 | 2 | | Federal Reserve Bank of Boston (b) | United States | — | 21.38 | | 21.38 | 21.09 | Banking | — | 186,079 | 1,496 | 83 | | Fondo de Titulización de Activos UCI 14 | Spain | — | (h) | | — | — | Securitization | Joint ventures | 163 | 0 | 0 | 257 | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | Societies of which Grupo Santander owns more than 5% (g) , entities associated with Grupo Santander and jointly controlled entities | | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (f) | | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Type of company | Asset | Capital + reserves | Net results | | Fondo de Titulización de Activos UCI 15 | Spain | — | (h) | | — | — | Securitization | Joint ventures | 207 | 0 | 0 | | Fondo de Titulización de Activos UCI 16 | Spain | — | (h) | | — | — | Securitization | Joint ventures | 288 | 0 | 0 | | Fondo de Titulización de Activos UCI 17 | Spain | — | (h) | | — | — | Securitization | Joint ventures | 245 | 0 | 0 | | Fondo de Titulización, RMBS Green Prado XI | Spain | — | (h) | | — | — | Securitization | Joint ventures | 372 | 0 | 0 | | Fondo de Titulización, RMBS Prado IX | Spain | — | (h) | | — | — | Securitization | Joint ventures | 341 | 0 | 0 | | Fondo de Titulización, RMBS Prado VIII | Spain | — | (h) | | — | — | Securitization | Joint ventures | 291 | 0 | 0 | | Fondo de Titulización, RMBS Prado X | Spain | — | (h) | | — | — | Securitization | Joint ventures | 392 | 0 | 0 | | Forest Power Aranda, S.L. Unipersonal | Spain | 0.00% | 55.00% | | 55.00% | 55.00% | Renewable energies | Joint ventures | 2 | 1 | 0 | | Forest Power Cantabria, S.L. Unipersonal | Spain | 0.00% | 55.00% | | 55.00% | 0.00% | Electricity production | Joint ventures | 0 | 0 | 0 | | Forest Power Delta, S.L. Unipersonal | Spain | 0.00% | 55.00% | | 55.00% | 0.00% | Gas production | Joint ventures | 0 | 0 | 0 | | Forest Power Epsilon, S.L. Unipersonal | Spain | 0.00% | 55.00% | | 55.00% | 0.00% | Chemical products production | Joint ventures | 0 | 0 | 0 | | Forest Power Gamma, S.L. Unipersonal | Spain | 0.00% | 55.00% | | 55.00% | 0.00% | Chemical products production | Joint ventures | 0 | 0 | 0 | | Forest Power Kappa, S.L. Unipersonal | Spain | 0.00% | 55.00% | | 55.00% | 0.00% | Gas production | Joint ventures | 0 | 0 | 0 | | Forest Power Lambda, S.L. Unipersonal | Spain | 0.00% | 55.00% | | 55.00% | 0.00% | Chemical products production | Joint ventures | 0 | 0 | 0 | | Forest Power Omicron, S.L. Unipersonal | Spain | 0.00% | 55.00% | | 55.00% | 0.00% | Chemical products production | Joint ventures | 0 | 0 | 0 | | Forest Power Zeta, S.L. Unipersonal | Spain | 0.00% | 55.00% | | 55.00% | 0.00% | Chemical products production | Joint ventures | 0 | 0 | 0 | | Forest Power, S.L. | Spain | 0.00% | 55.00% | | 55.00% | 55.00% | Renewable energies | Joint ventures | 1 | 1 | 0 | | Forgepoint Capital International Management Limited | United Kingdom | 50.00% | 0.00% | | 50.00% | 50.00% | Consulting services | Joint ventures | 1 | 1 | (1) | | Fortune Auto Finance Co., Ltd | China | 0.00% | 50.00% | | 50.00% | 50.00% | Finance company | Joint ventures | 2,100 | 443 | 20 | | FrauDfense, S.L. | Spain | 33.33% | 0.00% | | 33.33% | 33.33% | IT services | Joint ventures | 3 | 5 | (2) | | Fremman limited (consolidado) (b) | United Kingdom | 32.99% | 0.00% | | 4.99% | 4.99% | Consulting services | Associated | 10 | 6 | 1 | | Fundo de Investimento em Direitos Creditórios Multisegmentos NPL Ipanema X Responsabilidade Limitada | Brazil | 0.00% | 44.93% | | 50.00% | 0.00% | Investment fund | Joint ventures | 20 | 20 | 1 | | Gestamp Real Estate Assets 1, S.L. (k) | Spain | 0.00% | 43.89% | | 43.89% | 0.00% | Real estate management | — | — | — | — | | Gestamp Real Estate Bizkaia, S.L. (k) | Spain | 0.00% | 24.92% | | 24.92% | 0.00% | Real estate management | — | — | — | — | | Gestamp Real Estate Investment 2, S.L. (k) | Spain | — | 37.41% | | 37.41% | — | Real estate management | — | — | — | — | | Gestamp Real Estate Management 3, S.L. (k) | Spain | 0.00% | 36.19% | | 36.19% | 0.00% | Real estate management | — | — | — | — | | Gestora de Inteligência de Crédito S.A. | Brazil | 0.00% | 13.98% | | 16.00% | 16.00% | Collection services | Associated | 190 | 52 | (4) | | Gire S.A. | Argentine | 0.00% | 58.23% | | 58.33% | 58.33% | Payments and collection services | Associated | 122 | 77 | (4) | 258 | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | Societies of which Grupo Santander owns more than 5% (g) , entities associated with Grupo Santander and jointly controlled entities | | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (f) | | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Type of company | Asset | Capital + reserves | Net results | | Glenrowan Solar Holdings Pty Ltd | Australia | 49.00% | 0.00% | | 49.00% | 49.00% | Holding company | Joint ventures | 139 | 52 | (3) | | Global Esmirna, S.L. (en liquidación) (e) (l) | Spain | 0.00% | 15.00% | | 37.51% | 0.00% | Services | — | 26 | (1) | (16) | | HCUK Auto Funding 2017-2 Ltd | United Kingdom | 0.00% | (h) | | 0.00% | 0.00% | Securitization | Joint ventures | 459 | (2) | 0 | | HCUK Auto Funding 2022-1 Limited (m) | United Kingdom | — | (h) | | — | — | Securitization | Joint ventures | 917 | 2 | (4) | | HCUK Auto Funding 2025-1 Ltd | United Kingdom | 0.00% | (h) | | 0.00% | 0.00% | Securitization | Joint ventures | 232 | 0 | 0 | | Healthy Neighborhoods Equity Fund I LP (b) | United States | 0.00% | 22.37% | | 22.37% | 22.37% | Real estate | — | 8 | 8 | — | | Hyundai Capital UK Limited | United Kingdom | — | 50.01% | | 50.01% | 50.01% | Finance company | Joint ventures | 5,643 | 442 | 75 | | Hyundai Corretora de Seguros Ltda. | Brazil | — | 44.93% | | 50.00% | 50.00% | Insurance mediation | Joint ventures | 2 | 1 | 0 | | Imperial Holding S.C.A. (e) (i) | Luxembourg | — | 36.36% | | 36.36% | 36.36% | Securities investment | — | 0 | (113) | 0 | | Imperial Management S.à r.l. (b) (e) | Luxembourg | — | 40.20% | | 40.20% | 40.20% | Holding company | — | 0 | 0 | 0 | | Invensa Tradeco UK Limited | United Kingdom | 25.00% | — | | 25.00% | 4.99% | Holding company | Associated | 9 | 13 | (6) | | Inverlur Aguilas I, S.L. | Spain | — | 50.00% | | 50.00% | 50.00% | Real estate | Joint ventures | 0 | 0 | 0 | | Inverlur Aguilas II, S.L. | Spain | — | 50.00% | | 50.00% | 50.00% | Real estate | Joint ventures | 1 | 1 | 0 | | Inversiones ZS América Dos Ltda. | Chile | — | 49.00% | | 49.00% | 49.00% | Real estate and property investment | Associated | 252 | 186 | 58 | | Inversiones ZS América SpA | Chile | — | 49.00% | | 49.00% | 49.00% | Real estate and property investment | Associated | 339 | 339 | 58 | | Klar Holdings Limited (consolidado) (b) | Cayman Islands | — | 7.35% | | 7.35% | — | Holding company | — | 491 | 17 | (40) | | LB Oprent, S.A. | Spain | 40.00% | 0.00% | | 40.00% | 40.00% | Industrial machinery rental | Associated | 6 | 2 | 1 | | Logitek Software Ltd (k) | United Kingdom | 0.00% | 20.27% | | 20.27% | 0.00% | Software | Joint ventures | — | — | — | | Mapfre Santander Portugal - Companhia de Seguros, S.A. | Portugal | 0.00% | 49.99% | | 49.99% | 49.99% | Insurance | Associated | 22 | 8 | 1 | | Massachusetts Business Development Corp. (consolidado) (b) | United States | 0.00% | 21.61% | | 21.61% | 21.61% | Finance company | — | 49 | 15 | 1 | | MB Capital Fund IV, LLC (b) | United States | 0.00% | 21.51% | | 21.51% | 21.51% | Finance company | — | 5 | 5 | 1 | | Merlin Properties, SOCIMI, S.A. (consolidado) (b) | Spain | 20.08% | 4.63% | | 24.68% | 24.90% | Real estate investment | Associated | 13,459 | 7,318 | 284 | | Merlion Aviation One Designated Activity Company | Ireland | — | (p) | | — | — | Renting | — | 215 | 17 | 0 | | Metrovacesa, S.A. (consolidado) (b) | Spain | 31.94% | 17.46% | | 49.43% | 49.47% | Real estate development | Associated | 2,414 | 1,581 | 16 | | Nera Agro Holding, S.L. (b) | Spain | 50.00 | 0.00% | | 50.00 | — | Holding company | Joint ventures | 2 | 4 | (3) | | Nera Paraguay S.A. | Paraguay | — | 50.00% | | 50.00 | — | Financial services | — | 0 | 0 | 0 | | Nera Uruguay S.A. | Uruguay | 0.00% | 50.00% | | 50.00% | — | Financial services | — | 0 | 0 | 0 | | Ocyener 2008, S.L. | Spain | 0.00% | 45.00% | | 45.00% | 45.00% | Holding company | Associated | 18 | 18 | 0 | | Operadora de Activos Beta, S.A. de C.V. | Mexico | 49.99% | 0.00% | | 49.99% | 49.99% | Finance company | Associated | 0 | 0 | 0 | | Payever GmbH | Germany | 0.00% | 10.00% | | 10.00% | 10.00% | Software | Associated | 5 | 4 | 0 | 259 | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | Societies of which Grupo Santander owns more than 5% (g) , entities associated with Grupo Santander and jointly controlled entities | | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (f) | | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Type of company | Asset | Capital + reserves | Net results | | Phoenix C1 Aviation Designated Activity Company (e) | Ireland | — | (p) | | — | — | Renting | — | 0 | (17) | 17 | | Play Digital S.A. | Argentine | 0.00% | 13.49% | | 13.52% | 14.21% | Payment platform | Associated | 31 | 6 | 1 | | Pluxee Beneficios Brasil S.A. | Brazil | 0.00% | 17.97% | | 20.00% | 20.00% | Services | Associated | 1,304 | 400 | 97 | | POLFUND - Fundusz Poręczeń Kredytowych S.A. | Poland | 0.00% | 29.35% | | 50.00% | 50.00% | Management | Associated | 34 | 24 | 1 | | Portland SPV S.r.l. | Italy | — | (h) | | — | — | Securitization | Joint ventures | 106 | 0 | 0 | | Prodesa Medioambiente, S.L. | Spain | 0.00% | 9.80% | | 24.50% | 0.00% | Agricultural projects | — | 39 | 5 | 0 | | Promontoria Manzana, S.A. (consolidado) (b) | Spain | 20.00% | 0.00% | | 20.00% | 20.00% | Holding company | Associated | 558 | 117 | (38) | | Proteos Biotech, S.L. | Spain | 0.00% | 12.00% | | 30.00% | 0.00% | Pharmaceutica l | — | 17 | 7 | 2 | | Redbanc S.A. | Chile | 0.00% | 22.44% | | 33.43% | 33.43% | Services | Associated | 28 | 13 | 3 | | Redsys Servicios de Procesamiento, S.L. (consolidado) | Spain | 24.90% | 0.06% | | 24.96% | 24.96% | Cards | Associated | 134 | 63 | 10 | | Resurgence, S.L. | Spain | 0.00% | 40.00% | | 40.00% | 0.00% | Real estate development | Joint ventures | 8 | — | — | | Retama Real Estate, S.A. Unipersonal | Spain | — | 50.00% | | 50.00% | 50.00% | Real estate | Joint ventures | 14 | (55) | (2) | | Rías Redbanc S.A. | Uruguay | 0.00% | 25.00% | | 25.00% | 25.00% | Services | — | 5 | 1 | 0 | | RMBS Belém No.2 | Portugal | — | (h) | | — | — | Securitization | Joint ventures | 170 | 0 | 0 | | Roc Aviation One Designated Activity Company | Ireland | 0.00% | (p) | | 0.00% | 0.00% | Renting | — | 213 | (10) | (15) | | Roc Shipping One Designated Activity Company | Ireland | 0.00% | (p) | | 0.00% | 0.00% | Renting | — | 82 | 3 | (1) | | RP Royal Distribution, S.L. | Spain | — | 23.73% | | 23.73% | — | Food | Associated | 27 | 12 | 6 | | S3 Caceis Brasil Distribuidora de Títulos e Valores Mobiliários S.A. | Brazil | 0.00% | 50.00% | | 50.00% | 50.00% | Securities company | Joint ventures | 283 | 101 | 41 | | S3 Caceis Brasil Participações S.A. | Brazil | 0.00% | 50.00% | | 50.00% | 50.00% | Holding company | Joint ventures | 233 | 106 | 40 | | S3 CACEIS Colombia S.A. Sociedad Fiduciaria | Colombia | 0.00% | 50.00% | | 50.00% | 50.00% | Finance company | Joint ventures | 13 | 10 | 1 | | Sancus Green Investments II, S.C.R., S.A. (b) | Spain | — | 33.02% | | 33.02 | 33.02 | Venture capital company | — | 48 | 48 | 0 | | Santander Allianz Towarzystwo Ubezpieczeń na Życie S.A. | Poland | 0.00% | 28.76% | | 49.00% | 49.00% | Insurance | Associated | 240 | 32 | 45 | | Santander Allianz Towarzystwo Ubezpieczeń S.A. | Poland | 0.00% | 28.76% | | 49.00% | 49.00% | Insurance | Associated | 86 | 38 | 10 | | Santander Assurance Solutions, S.A. | Spain | 0.00% | 66.67% | | 66.67% | 66.67% | Insurance mediation | Joint ventures | 18 | 8 | 1 | | Santander Auto S.A. | Brazil | 0.00% | 44.93% | | 50.00% | 50.00% | Insurance | Associated | 107 | 6 | 11 | | Santander Caceis Latam Holding 1, S.L. | Spain | 0.00% | 50.00% | | 50.00% | 50.00% | Holding company | Joint ventures | 850 | 753 | 96 | | Santander Caceis Latam Holding 2, S.L. | Spain | 0.00% | 50.00% | | 50.00% | 50.00% | Holding company | Joint ventures | 3 | 3 | 0 | | Santander Generales Seguros y Reaseguros, S.A. | Spain | — | 49.00% | | 49.00% | 49.00% | Insurance | Joint ventures | 839 | 143 | 65 | | Santander Mapfre Hipoteca Inversa, E.F.C., S.A. | Spain | — | 50.00% | | 50.00% | 50.00% | Finance company | Joint ventures | 31 | 13 | (4) | | Santander Mapfre Seguros y Reaseguros, S.A. | Spain | — | 49.99% | | 49.99% | 49.99% | Insurance | Associated | 240 | 89 | 4 | | Santander Vida Seguros y Reaseguros, S.A. | Spain | — | 49.00% | | 49.00% | 49.00% | Insurance | Joint ventures | 1,010 | 291 | 78 | | Seaya Holdco, S.L. (consolidado) | Spain | 24.99% | 0.00% | | 24.99% | 24.99% | Holding company | Associated | 30 | 25 | 2 | | Servicios de Infraestructura de Mercado OTC S.A | Chile | 0.00% | 8.38% | | 12.48% | 12.48% | Services | Associated | 34 | 16 | 0 | 260 | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | Societies of which Grupo Santander owns more than 5% (g) , entities associated with Grupo Santander and jointly controlled entities | | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (f) | | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Type of company | Asset | Capital + reserves | Net results | | SIBS-SGPS, S.A. (consolidado) (b) | Portugal | 0.00% | 15.54% | | 16.55% | 15.56% | Management of portfolios | — | 596 | 278 | 57 | | SIG RCRS A/B MF 2023 Venture LLC | United States | 0.00% | 20.00% | | 20.00% | 20.00% | Finance company | — | 4,520 | 3,842 | 668 | | Siguler Guff SBIC Fund LP (b) | United States | 0.00% | 20.00% | | 20.00% | 20.00 | Investment company | — | 48 | 47 | 4 | | Sistema de Tarjetas y Medios de Pago, S.A. (b) | Spain | 20.61% | 0.00% | | 20.61% | 20.61% | Payment methods | Associated | 468 | 6 | 0 | | Sociedad Conjunta para la Emisión y Gestión de Medios de Pago, E.F.C., S.A. | Spain | 45.70% | 0.00% | | 45.70% | 45.70% | Payment services | Joint ventures | 73 | 37 | (1) | | Sociedad de Garantía Recíproca de Santander, S.G.R. (b) | Spain | 24.91% | 0.22% | | 25.13% | 25.17% | Financial services | — | 18 | 10 | 0 | | Sociedad de Gestión de Activos Procedentes de la Reestructuración Bancaria, S.A. (b) | Spain | 22.21% | 0.00% | | 22.21% | 22.21% | Financial services | — | 12,637 | (4,744) | (2,826) | | Sociedad Interbancaria de Depósitos de Valores S.A. | Chile | 0.00% | 19.66% | | 29.29% | 29.29% | Securities deposits | Associated | 11 | 9 | 2 | | Sociedad Operadora de la Cámara de Compensación de Pagos de Alto Valor S.A. | Chile | 0.00% | 9.21% | | 13.72% | 0.00% | Services | Associated | 11 | 8 | 1 | | Solar Maritime Designated Activity Company (b) | Ireland | — | (h) | | — | — | Leasing | Joint ventures | 119 | 7 | (1) | | STELLANTIS Insurance Europe Limited | Malta | 0.00% | 50.00% | | 50.00% | 50.00% | Insurance | Joint ventures | 230 | 61 | 35 | | STELLANTIS Life Insurance Europe Limited | Malta | 0.00% | 50.00% | | 50.00% | 50.00% | Insurance | Joint ventures | 93 | 1 | 14 | | Stephens Ranch Wind Energy Holdco LLC (consolidado) (b) | United States | 0.00% | 15.10% | | 15.10% | 15.80 | Renewable energies | — | 176 | 149 | (7) | | Tecnologia Bancária S.A. | Brazil | 0.00% | 17.05% | | 19.81% | 18.98% | ATMs | Associated | 484 | 149 | 4 | | Tonopah Solar Energy Holdings I, LLC (k) | United States | 0.00% | 26.80% | | 26.80% | 26.80% | Holding company | Joint ventures | — | — | — | | Transbank S.A. | Chile | 0.00% | 16.78% | | 25.00% | 25.00% | Cards | Associated | 1,545 | 139 | 19 | | U.C.I., S.A. | Spain | 50.00% | 0.00% | | 50.00% | 50.00% | Holding company | Joint ventures | 750 | 399 | (3) | | UCI Greece Credit and Loan Receivables Servicing Company Single Member Societe Anonyme | Greece | 0.00% | 50.00% | | 50.00% | 50.00% | Financial services | Joint ventures | 2 | 1 | 0 | | UCI Holding Brasil Ltda. | Brazil | 0.00% | 50.00% | | 50.00% | 50.00% | Holding company | Joint ventures | 0 | (1) | 0 | | UCI Mediação de Seguros, Unipessoal Lda. | Portugal | 0.00% | 50.00% | | 50.00% | 50.00% | Insurance mediation | Joint ventures | 0 | 0 | 0 | | UCI Servicios para Profesionales Inmobiliarios, S.A. Unipersonal | Spain | 0.00% | 50.00% | | 50.00% | 50.00% | Real estate services | Joint ventures | 1 | 0 | 0 | | Uncapped Limited (o) | United Kingdom | 0.00% | 29.14% | | 29.14% | — | Finance company | — | 98 | 21 | (1) | | Unicre-Instituição Financeira de Crédito, S.A. | Portugal | 0.00% | 21.83% | | 21.86% | 21.86% | Finance company | — | 531 | 129 | 20 | | Unión de Créditos Inmobiliarios, S.A. Unipersonal, EFC | Spain | 0.00% | 50.00% | | 50.00% | 50.00% | Mortgage lending company | Joint ventures | 9,255 | 756 | (72) | | Valorhold, S.L. | Spain | 0.00% | 16.00% | | 39.99% | 0.00% | Holding company | — | 191 | 133 | 7 | | VCFS Germany GmbH | Germany | 0.00% | 50.00% | | 50.00% | 50.00% | Marketing | Joint ventures | 1 | 1 | 0 | | Venda de Veículos Fundo de Investimento em Direitos Creditórios | Brazil | 0.00% | 35.85% | | 39.89% | 39.89% | Securitization | Joint ventures | 584 | 528 | 55 | | Volvo Car Financial Services UK Limited | United Kingdom | 0.00% | 50.01% | | 50.01% | 50.01% | Leasing | Joint ventures | 3,465 | 187 | 47 | | Waycarbon Soluções Ambientais e Projetos de Carbono S.A. | Brazil | 68.75% | 0.00% | | 50.00% | 100.00% | Consulting services | Associated | 10 | 5 | 1 | | Webmotors S.A. | Brazil | 0.00% | 26.96% | | 30.00% | 30.00% | Services | Associated | 131 | 67 | 36 | 261 | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | Societies of which Grupo Santander owns more than 5% (g) , entities associated with Grupo Santander and jointly controlled entities | | | | | | | | | | | | | | | % of ownership held by Banco Santander | | | Percentage of voting power (f) | | | | EUR million (a) | | | | Company | Location | Direct | Indirect | | Year 2025 | Year 2024 | Activity | Type of company | Asset | Capital + reserves | Net results | | WWSO II LLP | United Kingdom | 0.00% | 94.00% | | 94.00% | 0.00% | Real estate investment | Joint ventures | 84 | 28 | 0 | | Zurich Santander Brasil Seguros e Previdência S.A. | Brazil | 0.00% | 48.79% | | 48.79% | 48.79 | Insurance | Associated | 19,589 | 262 | 215 | | Zurich Santander Holding (Spain), S.L. Unipersonal | Spain | 0.00% | 49.00% | | 49.00% | 49.00% | Holding company | Associated | 1,025 | 936 | 311 | | Zurich Santander Holding Dos (Spain), S.L. Unipersonal | Spain | 0.00% | 49.00% | | 49.00% | 49.00% | Holding company | Associated | 384 | 382 | 178 | | Zurich Santander Insurance América, S.L. | Spain | 0.00% | 49.00% | | 49.00% | 49.00% | Holding company | Associated | 1,504 | 1,450 | 426 | | Zurich Santander Seguros Argentina S.A. (j) | Argentine | 0.00% | 49.00% | | 49.00% | 49.00% | Insurance | Associated | 90 | 45 | 12 | | Zurich Santander Seguros de Vida Chile S.A. | Chile | 0.00% | 49.00% | | 49.00% | 49.00% | Insurance | Associated | 235 | 40 | 36 | | Zurich Santander Seguros Generales Chile S.A. | Chile | 0.00% | 49.00% | | 49.00% | 49.00% | Insurance | Associated | 235 | 53 | 20 | | Zurich Santander Seguros México, S.A. | Mexico | 0.00% | 49.00% | | 49.00% | 49.00% | Insurance | Associated | 2,421 | 50 | 189 | | Zurich Santander Seguros Uruguay S.A. | Uruguay | 0.00% | 49.00% | | 49.00% | 49.00% | Insurance | Associated | 56 | 20 | 14 | a. Amount according to the provisional books at the date of publication of these annexes of each company, generally referring to 31 December 2025, except where otherwise indicated due to the fact that the annual accounts are pending formulation. The data for foreign companies are converted into euros at the exchange rate at the end of the year. b. Data as at 31 December 2024, latest available accounts. c. Data as at 31 December 2019, latest available accounts. d. Data as at 30 November 2021, latest available accounts. e. Company in liquidation as at 31 December 2025. f. Pursuant to Article 3 of Royal Decree 1159/ 2010, of 17 September, approving the rules for the preparation of consolidated annual accounts, in order to determine the voting rights, voting rights held directly by the parent company have been added to those held by companies controlled by the parent company or by other persons acting in their own name but on behalf of a group company. For these purposes, the number of votes corresponding to the parent company, in relation to the companies indirectly dependent on it, is that corresponding to the dependent company that directly participates in the share capital of the latter. g. Excluding the Group companies listed in Appendix I, as well as those which are of negligible interest with respect to the true and fair view that the consolidated financial statements must give (in accordance with articles 48 of the Commercial Code and 260 of the Spanish Companies Act). h. Companies over which joint control is maintained. i. Data as at 31 October 2024, latest available accounts. j. Data as at 30 June 2025, latest available accounts. k. Company with no financial information available. l. Data as 31 December 2023, latest available account. m. Data as at 30 September 2025, latest available accounts. n. Investment managed discretionally by a manager outside the Santander Group, the voting rights not being, in this case, decisive in determining control of the entity. o. Data as 30 April 2025, latest available accounts. p. Company over which effective control has been lost. q. Data as 31 January 2025, latest available accounts. 262 #### Appendix III | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | Issuing subsidiaries of shares and preference shares | | | | | | | | | | | | % of ownership held by Banco Santander | | | EUR million (a) | | | | | Company | Location | Direct | Indirect | Activity | Capital | Reserves | Cost of preferred | Net results | | Emisora Santander España, S.A. Unipersonal (c) | Spain | — | — | Finance company | — | — | — | — | | Santander UK (Structured Solutions) Limited | United Kingdom | 0.00% | 100.00% | Finance company | 0 | 0 | 0 | 0 | | Santander Global Issuances B.V. (b) | Netherlands | 100.00% | 0.00% | Finance company | 0 | 0 | 0 | 0 | | Sovereign Real Estate Investment Trust | United States | 0.00% | 100.00% | Finance company | 4,751 | (3,383) | 82 | 9 | a. Amount according to the books of each interim company as at 31 December 2025, converted into euro (in the case of foreign companies) at the year- end exchange rate. b. Company with tax residence in Spain. c. Accounting merged company. Pending registration. 263 #### Appendix IV Notifications of acquisitions and disposals of investments in 2025 (Article 155 of the Capital Companies Law and Article 105 of the Securities Market Law) Regarding compliance with Article 125 of the Securities Market Law, no notifications required under said article were made during financial year 2025. Regarding the information required under Article 155 of the Capital Companies Law, concerning holdings in which Santander Group owns more than 10% of the share capital of another company, and any subsequent acquisitions exceeding 5% of the share capital, see Annexes I, II and III. 264 #### Appendix V List of Transactions subject to the Special Regime for Mergers, Divisions, Assets Contributions, Exchange of Securities and corporate domicile change of a European Company or a European Cooperative Society from one Member State to another Member State of the European Union in which the company has acted as an Acquiring Entity or Partner In compliance with the disclosure obligations set out in Article 86 of Law 27/2014, of 27 November, on Corporate Income Tax (the “CIT Law”), the following information is provided in relation to transactions subject to the special tax regime for mergers, spin- offs, contributions of assets, exchanges of shares and transfers of registered office of a European Company or a European Cooperative Society from one Member State to another within the European Union, as provided for in Chapter VII of Title VII of the CIT Law, in which BANCO SANTANDER, S.A. participated during the 2025 financial year: I. Pursuant to the provisions of Article 86(1) of the CIT Law, it is hereby reported that BANCO SANTANDER, S.A. participated as the acquiring company in the following transaction, which was registered with the Mercantile Registry on 28 January 2026: – Merger by absorption of EMISORA SANTANDER ESPAÑA, S.A.U., URO PROPERTY HOLDINGS, S.A., BLECNO INVESTMENTS, S.L.U. and ELEVATE TECH PLATFORMS, S.L.U. (the absorbed companies) by BANCO SANTANDER, S.A. (the absorbing company), which held all of the share capital of the absorbed entities. This transaction constitutes a merger within the meaning of Article 76.1(c) of the CIT Law. The information required under Article 86(1) of the CIT Law is included in these financial statements. II. Pursuant to the provisions of Article 86(2) of the CIT Law, it is hereby reported that BANCO SANTANDER, S.A. participated as a shareholder in the following transactions: – Reverse merger whereby WAYCARBON SOLUÇÕES AMBIENTAIS E PROJETOS DE CARBONO S.A. (a Brazilian company) absorbed its parent company, MUNDUSPAR PARTICIPAÇÕES S.A. (a Brazilian company). This transaction constitutes a merger within the meaning of Article 76.1(a) of the CIT Law. BANCO SANTANDER, S.A. held 80% of the share capital and voting rights of MUNDUSPAR PARTICIPAÇÕES S.A. Following the transaction, it holds 68.749% of the share capital and 49.9% of the voting rights of WAYCARBON SOLUÇÕES AMBIENTAIS E PROJETOS DE CARBONO S.A. The carrying amount of the shares delivered in MUNDUSPAR PARTICIPAÇÕES S.A. was EUR 36,344,382, while their tax value amounted to EUR 73,814,747. The amount at which BANCO SANTANDER, S.A. has recognised the new investment in WAYCARBON SOLUÇÕES AMBIENTAIS E PROJETOS DE CARBONO S.A. is EUR 36,344,382. – Exchange of shares, regulated in Articles 76.5 and 80 of the CIT Law, whereby SAM INVESTMENT HOLDINGS, S.L. acquired a 100% interest in the share capital and voting rights of the Spanish entity SANTANDER PRIVATE BANKING GESTIÓN, S.A., S.G.I.I.C. (single shareholder company). This transaction is executed as a contribution from shareholders, recognised in account 118 “Contribution from shareholders” (included under heading 11 “Reserves and other equity instruments”in the chart of accounts of the Spanish General Chart of Accounts, approved by Royal Decree 1514/2007, of 16 November). It consisted of a non-cash contribution made by BANCO SANTANDER, S.A. of the shares in SANTANDER PRIVATE BANKING GESTIÓN, S.A., S.G.I.I.C. (single shareholder company), which was subject to obtaining the non- objection of the CNMV. The carrying amount at which BANCO SANTANDER, S.A. had recognised the shares delivered in SANTANDER PRIVATE BANKING GESTIÓN, S.A., S.G.I.I.C. was EUR 35,460,052, while their tax value amounted to EUR 25,950,993. The amount at which BANCO SANTANDER, S.A. has recognised the shares received in SAM INVESTMENT HOLDINGS, S.L. is EUR 79,318,507. 265 – Non-cash contribution of real estate assets owned by BLECNO INVESTMENTS, S.L.U. and BANCO SANTANDER, S.A. to RETAILCOMPANY 2021, S.L.U. This transaction constitutes a non-cash contribution within the meaning of Article 87 of the CIT Law and did not qualify for the special tax regime provided for in Article 77.1 thereof. The net value of the real estate assets contributed by both companies amounted to EUR 10,532,070. The amount at which BANCO SANTANDER, S.A. has recognised the shares received in RETAILCOMPANY 2021, S.L.U. is EUR 10,532,070 (see Note 1.i). III. In compliance with the provisions of Article 86(3) of the CIT Law, it is hereby stated that the disclosures required under paragraphs 1 and 2 of Article 86, relating to transactions subject to the special tax regime for mergers, spin-offs, contributions of assets, exchanges of shares and transfers of registered office of a European Company or a European Cooperative Society from one Member State to another within the European Union, as provided for in Chapter VII of Title VII of the CIT Law, in which BANCO SANTANDER, S.A. participated as acquiring company or shareholder in prior financial years, are included in the first annual financial statements approved by the acquiring entities following each of the aforementioned transactions. 266 #### Appendix VI Information regarding to the merger by absorption between Banco Santander, S.A. (absorbing company) and Uro Property Holdings, S.A., Blecno Investments, S.L.U. (absorbed companies), according to Article 86.1 of Law 27/2014 of the Corporate Tax Act. a) Fiscal year in which the transferor entity acquired the transferred assets that are subject to depreciation. There are no depreciable assets in Emisora Santander España, S.A.U. and Elevate Tech Platforms, S.L.U. The assets subject to depreciation in Uro Property Holdings, S.A. and Blecno Investments, S.L.U. are those recorded under the “investment property” line item in their merger balance sheets (see Note 1.i), acquired in 2007 and 2015, respectively. b) Latest balance sheet closed by the transferor entities. The latest balance sheets of the transferor entities can be found in Note 1.i. c) List of acquired assets that have been incorporated in the accounting books at a value different from that at which they were recorded in the transferor entity prior to the transaction, stating both values, as well as the valuation adjustments made in the accounting books of the two entities. Below is the detail of those asset line items of the transferor entity´s balance sheet that have been recognized at a different carrying amount in the acquiring entity: Amounts in million of euros: | | | | | | --- | --- | --- | --- | | | | | | | Financial Statement Line | Book value Elevate Tech Platforms, S.L.U. | Merged adjustment value | Book value Banco Santander | | Investments in subsidiaries, joint ventures and associates | 1 | 0,1 | 0,9 | Amounts in million of euros: | | | | | | --- | --- | --- | --- | | | | | | | Financial Statement Line | Book value Blecno Investments, S.L.U. | Merged adjustment value | Book value Banco Santander | | Real state investments | 224 | (40) | 184 | d) List of tax benefits enjoyed by the transferring entity, for which the acquiring entity must assume compliance with certain requirements. There are no tax benefits in the transferring entity for which Banco Santander, S.A. must assume compliance with certain requirements. 267 #### Appendix VII #### Agent network - Collaborating agents, Agents empowered at 31 of December 2023. | | | --- | | | | FRANCISCO JOSE GARCIA MORA | | CASTOR INVERYSER SL | | SOLEDAD LAMBERTO GARCIA | | SERVICIOS BANCARIOS OLULA DEL RIO SL | | SERVICIOS BANCARIOS BERJA SL | | ANTONIO CEREZUELA RUIZ | | SERVICIOS BANCARIOS CANTORIA S.L. | | GRUPO ALMARES 2015 SL | | SERGIO MUÑOZ RAMIREZ | | MARIA DEL MAR CARRETERO FERNANDEZ | | MARIA DE LOS ANGELES ESCUDERO ORTEGA | | FRANCISCA MARQUEZ CONTRERAS | | JOSE ANTONIO ESCUDERO ORTEGA | | ROSA MARIA RIVERO ACEDO | | JUAN JERONIMO TIMERMANS NUÑEZ | | JUAN RAMON BENITEZ GOMEZ | | MANUEL BARRIGA DORADO | | SEFIAL 2021 SL | | ZAMBRAMONG SOCIEDAD LIMITADA | | DOMINA SIDON SL | | | | --- | | | | MULTIALGAIDA SERVICIOS FINANCIEROS SL. | | MARIA LUISA PEREZ GUILLEN | | CRISTINA NADALES PEREZ | | MDBEATO SL | | SEBASTIAN PAVON CAMPOY | | CARRASBER SL | | JUAN DAVID PEREZ VALENZUELA | | JUAN MANUEL PEREZ PRADO | | BERCAMLU S.L. | | JULUM FINANZAS SLU | | J&M INVERSION Y FINANCIACION EMPRESARIAL S.L.U. | | JUCAR ASESORES S.L. | | ASESORAMIENTO Y COACHING FINANCIERO S.L. | | IPEVA INVERSIONES FINANCIERAS SLU | | EFEROR ASOCIADOS SLU | | GUERRERO FINANCIAL STRATEGIES S.L. | | SIMO CONSULTORIA SL | | ASESORAMIENTO FINANCIERO ALGASA SLU | | RAFAEL JESUS VILLARREAL ARIZA | | EGAMAR ASESORES SLU | | | | --- | | | | ASESORAMIENTO FINANCIERO Y ANALISIS DE MERCADOS SLU | | MARTA CASTRO HIDALGO | | GESTIONES MORENO E HIJOS S.L. | | NATALIA FERNANDEZ SANCHEZ | | SERVICIOS FINANCIEROS PEDRO ABAD SOCIEDAD LIMITADA | | JOSE MARIN PEREZ | | MANUEL SALGADO KAITTANI | | ASESORAMIENTO FINANCIERO BERNARDO RODRIGUEZ ASBER FINANCE SL. | | NEOBAN SL | | MARIA DE ARANZAZU DOMEZAIN GRANADOS | | ARESBAN SERVICIOS MERCANTILES S.L | | EMILIO SANCHEZ ALCARAZ | | ALVARO FABREGAS SANTAMARIA | | AMS GESTION GLOBAL SL | | FANDILA GARCIA ZAMORA | | PEDRO ANGEL LUPIAÑEZ RODRIGUEZ | | ANTONIO MARIN VALIENTE | | JUAN CARLOS GOMEZ GARCIA | | HOPE FINANCE SL | | MARIA ISABEL RAMIREZ RODRIGUEZ | 268 | | | --- | | | | AM SERVICIOS FINANCIEROS SL | | ONUBA FINANCIEROS SL | | JOSE MANUEL GUEVARA GONZALEZ | | SERVICIOS FINANCIEROS DEL CONDADO S.L.U. | | ASESORIA GESTION GLOBAL S.L. | | ANA MARIA DIAZ SANTANA | | NURIA MONTERO GONZALEZ | | MELODI MARIA DOMINGUEZ ZAHINO | | JUAN PEDRO BENITEZ GARCIA | | ASESORAMIENTO FINANCIERO SANZ RAMIREZ SL | | FRANCISCO JAVIER MARTINEZ FERNANDEZ | | MARIA PAZ IBARRA RECHE | | NURIA FERNANDEZ REYES | | ERNESTO MARTINEZ FERNANDEZ | | BERNABE JOSE VALLECILLO MUÑOZ | | JOSEFA SIMON YEBENES | | MARIA ISABEL GARCIA GONZALEZ | | PEDRO MIGUEL DEUTOR GARRIDO | | BEATRIZ GOMARIZ LOPEZ | | MARIA JOSE CHARNECO HERRERO | | FRANCISCO CASTILLO CONTRERAS | | GESTIONES FINANCIERAS PLAZA S.L. | | MARIA ANTONIA POZA GARCIA | | | | --- | | | | MARIA ASUNCION PALOMARES RUIZ | | ANTONIO GUILLEN RAMIREZ | | MANUEL GUERRERO VERDEJA | | MIGUEL ANGEL CASASOLA CASASOLA | | PEDRO DAVID DELGADO YANES | | VC SERVICIOS FINANCIEROS SL | | JUAN JOSE ESTRADA BERNAL | | ANTONIO ESCUDERO VILLAREJO | | CARMEN PINTO DIAZ | | MARIA BELEN GONZALEZ RAMIREZ | | MARIA CONCEPCION TELLEZ RUIZ | | FATIMA PINO ARIZA | | ANGEL EDUARDO RODRIGUEZ REY | | JESUS MARTINEZ CAÑAVATE GOMEZ MILLAN | | SALVADOR CEA PEREZ | | LUIS MANUEL MAYO RUBIO | | NUÑEZ MONTES FINANCIEROS S.L | | ALBERTO SANTIAGO LLORENTE MARTINEZ | | ISAMAR ORDOÑEZ MUÑOZ | | BRIGIDA MARIA ROMERO SALADO | | AZNALSAN SL | | MAYKA GONZALEZ HEREDIA | | LIDIA MONTILLA GONZALEZ | | | | --- | | | | LUIS RISQUETE REQUENA | | FERNANDO GONZALEZ SANCHEZ | | SANPIBO SL | | AGEMARTI SLU | | IÑARETA Y MUÑOZ SL | | ALVARO DIAZ DESCANE | | SANPUEBLA SL | | FERPUN GESTION SLU | | LOURDES ROMERO LOPEZ | | MARLOP 1822 SL | | REQUERTILLO S.L. | | JUAN LEON NAVARRETE | | SERVICIOS INTEGRALES DOÑANA S.L. | | MORIANA AGC S.L.U | | RICARDO PIÑERO GARCIA | | MARIA JESUS MARTIN RODRIGUEZ | | JOSE CABRERA COSANO | | FERNANDO POLO MATEOS | | JORGE BARRERA PEREZ | | JUAN MANUEL MAYORGA BELLOSO | | ALVARO DELGADO DE MENDOZA CORTES | | FINANCIACIONES LAS CABEZAS SL | | CARLOS GAVIN LORIENTE | 269 | | | --- | | | | JOAN FELIU PUIGVERT | | ROSA ANA FATAS LAPLANA | | LANDA MENDOZA GESTION FINANCIERA S.L. | | ELSA TORRES MOLINA | | VERONICA PUEY MUÑOZ | | ALVARO MOLINER ABADIA | | FEDERICO SOROLLA LLAQUET | | ANA ISABEL MONTULL CACHO | | SONIA BRAZO BOSQUE | | BELEN PALACIO TORRES | | OLIVER LABARTA S.L. | | ANA MARIA RUBIO PALACIOS | | ROSA MARIA POBLADOR ASENSIO | | RAUL RIVAS VAL | | JOSE ANTONIO GARCIA CHINCHETRU | | MARIA EUGENIA BOZAL HUGUET | | NAVARRETE GESTION 2018 SL | | MARIA DEL CARMEN NIEVES MARTINEZ | | MARIA DEL PILAR RAMIREZ DIEZ | | MARIA EUGENIA GONZALEZ SANCHEZ | | JOSE JAVIER MAZUELA CREGO | | VICTOR JIMENEZ VERANO | | JAVIER GURIDI EZQUERRO | | | | --- | | | | JOSE JAVIER SALAVERRI MARTINEZ | | SARA  MORALES  ECHEVERRIA | | MARIA DOLORES FOLLA-CISNEROS GARCIA | | JOSE GABRIEL BALLESTERO FERNANDEZ | | USTARIZ ZUBIRI ASOCIADOS SL | | MARIA JOSE AUSEJO MARTINEZ | | JAIME ARGAIZ CANO | | JASON ANDRES HERRERA GUASCA | | JOSE JAVIER ELIA LETE | | MIRIAN GARCIA ALFARO | | INES CERDAN ELCUAZ | | OIHANE AICUA RODRIGUEZ | | JAVIER ROYO HERRANZ | | OSCAR ADAN CABEZON | | PRISCILA CRISTOBAL MALO | | FRANCISCO FERNANDEZ PASCUAL | | AGENTES FINANCIEROS SANTESTEBAN SL. | | SEHILA BARRIO DEL SAENZ | | CRISTINA ZABALA USTARIZ | | FRANCISCO JOSE VIEJO GONZALEZ | | MIGUEL ANGEL MARTIN ISERTE | | CARLOS GROS NAVARRO | | HECTOR EDO ALEGRE | | | | --- | | | | ALCARRAZ PERALTA SL | | PRAEDIUM FINANZAS SL | | MAXIMO PLUMED LUCAS | | MARIA TERESA MARTIN MUNIESA | | CRISTOBAL ROMERO LORENTE | | LOURDES GIMENO TIRADO | | GEMMA ARRUFAT RAFALES | | MANUEL GARCIA MONTOLIO | | FINANZAS ALLOZA S.L | | JOSE DANIEL GARCES VIRGOS | | ADRIAN MILIAN GONZALEZ | | MARIA ESCRIBANO PAVON | | JAVIER DOMINGO PASCUAL JIMENEZ | | LUIS FERNANDO ANDRES VILLALBA | | JULIA MARIA SEGURA VICENTE | | JOSE GABRIEL PASTOR MANZANO | | DIEGO CARCAS SANCHEZ | | IRENE ABIZANDA VAL | | JOSE JIMENEZ OVEJAS | | GESTION GLOBAL BANCARIA S.L.U. | | VERONICA REMIRO BASANTA | | RAUL LANGA GOMEZ | | FLORENTINO LARA NOTIVOLI | 270 | | | --- | | | | INTERMEDIACION NASARRE SL | | JESUS QUINTANA MAULEON | | PASCUAL HIGINIO DOMINGO PEÑA | | CLARA URGEL CASEDAS | | LAURA COMENGE HIGUERAS | | MARIA MERCEDES SALAS BAENA | | MARIA ESTHER FERRANDEZ PARDOS | | SERGIO BUIL GARCIA | | BEATRIZ SERRANO SAN PEDRO | | FERNANDEZ DEL VALLE NOE 046869184C S L N E | | GUILLERMO FOS ALZAMORA | | ANGELA FIGAROLA TARDIU | | JUAN ROSSELLO AMENGUAL | | JORDI JUAN RIBAS | | ALBERTO BARTOLOME BLAS DE GUASP | | GUILLEM GENOVARD CALDENTEY | | CECILIA MARIA ROSSELLO FLORIT | | MARMA MALLORCA SL | | LONUBRUAD SL | | ELISENDA ARIMANY BALLART | | AGFINAND SL | | MARIA JOSE DUEÑA FUSTER | | ERNESTO DOMINGUEZ SLU | | | | --- | | | | PEDRO FERRAGUT DIAGO | | MARIA ANTONIA BARCELO AMENGUAL | | JUAN CARBONELL SOCIAS S.L. | | JUAN MANUEL ALARCON GARCIA | | OCTAVIO VADILLO GARCIA | | MALULA SERVICIOS FINANCIEROS SL | | TEROR VP INVERSION SL | | OMAR PEREZ GARCIA | | CHUECA MARTIN GESTION BANCA SL | | FRANCISCO J SANTIAGO ALEMAN | | PEDRO JAVIER SANCHEZ RODRIGUEZ | | JORGE MONAGAS RIO | | LANZABROKER JHF SL, | | AGUSTIN RUIZ SAIZ | | ALEJANDRO FERNANDEZ GARCIA | | ALEJANDRO MARTIN KARLSSON | | FERRERAS DE INVERSIONES S L | | ANA BEBI SL. | | JOSE MANUEL PERERA QUINTANA | | FC GLOBAL FINANCE SL | | EDUARDO HERNANDEZ HERNANDEZ | | RUBEN TORIJANO BUENO SLU | | GORKA PEREZ DIAGO | | | | --- | | | | JON DIEZ DIEGO DE | | SERVICIOS Y SOLUCIONES SASGON | | ENRIQUE MARCOS ORTEGA | | CARLOS MESA DIEZ | | ALEJANDRO ESCAPA ESPINEL | | JORGE ESCAPA ESPINEL | | LUCAS RIVAS PORTILLO | | ABRAHAN MARTINEZ IGLESIAS | | POSADA GESTION FINANCIERA SLU | | RAQUEL RIVERA PALACIO | | CARLA SANJULIAN MENDEZ | | GESTION FINANCIERA CODI S.L. | | JUAN MARIA VALDES MARTIN | | JOSE MARIA ANTON GARCIA | | ALMUDENA GONZALEZ GALLEGO | | ALBERTO SUTIL FERNANDEZ | | ANGEL MOLLEDA VELEZ | | MARIA DE LOS ANGELES RODRIGO GUTIERREZ | | PEDRO CONDE DIEZ | | PATRICIA RODRIGUEZ ALONSO | | JCOBO INVESTMENTS SOLUTIONS SL | | DAVID GARCIA-ARCICOLLAR RODRIGUEZ | | SERFISAN SERVICIOS FINANCIEROS S.L | 271 | | | --- | | | | DAVID INCHAUSPE PEÑA | | TAMARA CANTERO SANCHEZ | | SOLUCIONES FINANCIERAS HIJOS ALVARADO ARAUJO SL | | NOELIA MARTIN BOLIVAR | | QUEJO XXI SL | | SERVICIOS FINANCIEROS MAZA Y VILAR SL | | DAVID CONTRERAS SANZ | | ARAUJO IRUSTA SERVICIOS FINANCIEROS SL | | CUALVENTI SERVICIOS FINANCIEROS | | YOLANDA ALVAREZ RODRIGUEZ | | ALVARO DIAZ ASTARLOA | | GILDA Y ASOCIADOS 2024 SOCIEDAD LIMITADA | | VICTOR GONZALEZ CABO | | NALUC 23 SL | | DAVID GONZALEZ SANZ | | MARIA SASTRE GONZALEZ | | ARCADIO SAEZ SANZ | | MARTA ISABEL MARTINEZ ESCOBAR | | FERNANDO ENRIQUE RODRIGUEZ PEREZ | | MADRIGAL FINANCIERO S.L. | | BEATRIZ GALLEGO MARTIN | | SONSOLES RIVERO HERNANDEZ | | SANTANDERSANPEDRO FINANCIERO SL | | | | --- | | | | NOELIA SANZ VILLARREAL | | PEDRO CUESTA BAUTISTA | | MARCIAL SANTOS SANCHEZ | | 6395 POYALES DEL HOYO AGENTE COLABORADOR SL | | JOANA LOPEZ ROZAS | | JORGE ALONSO ARRIBAS | | JORGE APARICIO GONZALEZ | | A.C. VILLARCAYO S.L. | | ANA MARIA SAN MILLAN COBO | | SANTOS BOL GARCIA | | SARA MARTINEZ GONZALEZ | | VANESSA PEREZ RODRIGUEZ | | OLGA LLORENTE COSTA | | HELLEN JANETH MENDEZ MURCIA | | LUIS MIGUEL VEGA JANILLO | | AC CARRIZO DE LA RIBERA SL | | RAQUEL GAVELA SANCHEZ | | JAVIER TERAN CAMUS | | JESUS CANTON GONZALEZ | | VANESA VEGA BLANCO | | MARIA INES VALCUENDE GARMON | | ALBERTO MORAN PEREZ | | LEAGENSA SL | | | | --- | | | | 24198 SANTANDER LA VIRGEN DEL CAMINO SL | | MARIA JESUS MONROY CARNERO | | MARIA DEL CARMEN CAMUS SAN EMETERIO | | AC SANTANDER VEGUELLINA SOCIEDAD LIMITADA | | A.C. LAGUNA DE NEGRILLOS S.L. | | ORDAS CASADO S.L. | | ALBERTO GONZALEZ MONTES | | NOELIA PEÑALVO MARINA | | MARIA SALOME ROSA DIEZ | | IGNACIO MARIA ANTOLIN FERNANDEZ | | ANGELA MAGDALENO GONZALEZ | | EDUARDO GONZALEZ MARTIN | | GONZALO PEREZ JOSE | | CARLOS GARCIA RODRIGUEZ | | JESUS ANGEL GUTIERREZ QUINTANILLA | | A.C. PAREDES DE NAVA S.L.U. | | MERINO LOBATO S.L. | | MARIA MERCEDES GUZON LIEBANA | | VICTOR MANUEL PEREZ SANCHEZ | | SR SANTANDER GESTION SL | | EMILIO MARTIN LANCHAS | | MARIA MANUELA SANCHEZ CASTAÑO | | ALBERTO RIAÑO MOROCHO | 272 | | | --- | | | | 1321 SANTANDER LA ALBERCA S.L. | | MARIA VICTORIA IGLESIAS MATEOS | | MARIA VICTORIA DURAN ALVEZ | | ASUNCION MATEOS PASCUAL | | SANTANDER LA VELLES S.L. | | AGUSTINA AGUDO FRANCIA | | MARIA ELISA ROSON FERRERO | | MARTA HERNANDEZ PEREZ | | ANA MARIA SIERRA HERNANDEZ | | SERGIO SANCHEZ RODRIGUEZ | | 6155 SANTANDER LEDESMA S.L. | | CLARA HERNANDEZ NOVOA | | JACINTO MANUEL PALOMERO PALOMERO | | MARIA DEL SOCORRO BENAVIDES SANCHEZ | | GESTION SANTANDER CARBAJOSA S.L.U | | MIKEL ANDRES SANCHEZ CASTILLO | | BENEDICTO GUTIERREZ BERNAL | | MARIA AUXILIADORA PEREZ SERRADA | | ANNA LOURDES MATEOS SANCHEZ | | ANGEL ARMENTEROS CUESTA | | JUAN BAUTISTA HIDALGO IÑIGO | | INES PINDADO SAEZ | | MARIA ELENA BRAVO SAN INOCENTE | | | | --- | | | | 40165 AGENTE COLABORADOR PRÁDENA S.L. | | MARIA ELISA SAEZ JIMENEZ | | BEATRIZ GARRIDO SANTANDER S.L. | | MARIA GONZALEZ MUNICIO | | ARACELI GONZALEZ MEJIAS | | YUBERO MORENO AGENTES FINANCIEROS SL | | JESUS BERZAL MIGUEL | | OSCAR MANUEL ALFAGEME MARTIN | | FERNANDO AREVALO GOMEZ | | PEDRO MARIA MARINA MEDRANO | | JOSE ANGEL TIERNO ARANDA | | MARCOS ASENJO HERNANDO | | AREVALO Y MONGE SL | | JAIME RIVERO CALVO | | MARIA TERESA SALGADO RODRIGUEZ | | AC LA CISTERNIGA 2022 SL | | A.C. SANTOVENIA DE PISUERGA SL. | | MANUEL JAVIER DELBOY RODRIGUEZ | | AC CIGÜEÑA SL | | BONAGUE 2025 SL | | MIRIAM CARRO HERNANDO | | JUAN ANTONIO SALGADO HERNANDEZ | | ALICIA FADRIQUE PICO | | | | --- | | | | MARIA VISITACION BECARES MARTINEZ | | 0880 SANTANDER SANTIBAÑEZ SL | | FRANCISCO ALBARRAN PELAYO | | MONICA CUBAS HERNANDEZ | | ALBARRAN FIGAL S.L. | | MARTA MARIA GARCINUÑO CASELLES | | PATRICIA BARTULOS MARTIN | | GESTION INTEGRAL SANTANDER SL | | ENRIQUE Y SINDE ASOCIADOS S.L. | | MARIA TERESA RODRIGUEZ FUENTES | | LORENA HERNANDEZ ATIENZA | | SERFISIT SERVICIOS FINANCIEROS SL | | NAROBESA INV SL. | | CARLOS PABLO LOPEZ | | ALEJANDRO LLERA FERNANDEZ | | MERMAIDSOUP SL | | CORPALBALATE 2025 S.L | | ANNA BATALLA FARRE | | AINOA LORAS COLL | | OSCAR BLANCO CID | | ESTEVE UTSET BADIELLA | | ALICIA MARIA LOPEZ SERICO | | ELISABET PUGA JODAR | 273 | | | --- | | | | DANIEL MASSA I RAMIREZ | | ENRIC CORTADA GUTIERREZ | | ALBALATE SERVICIOS FINANCIEROS Y DE GESTION SL | | EVA CASAHUGA FUSET | | GLINKGO BILOBA PROPERTIES SL | | DAVID OLMO FORTE | | ANA MARIA JIMENEZ AGUAYO | | CRISTINA HUERTOS CABEZA | | ROSA MARIA PADROS ANGUITA | | FINANCIAL VALUE INVESTMENT S.L | | EDUARD MAS POMES | | CARLOS ALBERTO GARCIA FERNANDEZ | | SIRER FINANCE SL | | INGRID QUILES SANCHEZ | | JOSANVIC SL | | MYRIAM ALPAÑEZ PINO | | FELIPE PARRA CARRERA | | JAUME VEGAS BAUTISTA | | MARESFIN MARESME S.L. | | JAVIER COMA PALOU | | DANIEL TORRES MUIXI | | MARIA BELEN GARCIA BLANCO | | GERENCIA & DESARROLLO DE SUCURSALES S.L. | | | | --- | | | | JOARMAS ASESORAMIENTO S.L.U. | | JORDI ROSA ARIZA | | MARIA AFRICA CARDIEL COLL | | VICENT MORE CAMPS | | JUAN CARLOS MORENO GARCIA | | ISABEL OLMO VIBORAS | | BERTA RIERA FERRAN | | DFINANCES 2022 SL | | MAVANTIA FINANCE SOCIEDAD LIMITADA | | VIRGINIA LEDESMA ARCOS | | JIA AGENTS SL | | NATALIA MOLINA SOLER | | SAUSOLUCIONS SL | | JOSE LUIS CARMONA AMADO | | KMB FINANCES SOCIEDAD LIMITADA. | | MARC TARRES MALE | | OSCAR MUSTE ROIG | | DE HARO FIDUCIUM FINANCE SL | | DANIEL LIENAS GRANDE | | MARC MASERAS I SABATER | | MIGUEL JOSE MALAVE FERNANDEZ | | MARIA SOLE RIBERA | | ANTONI MONSO BONET | | | | --- | | | | JORDI RIBALTA ARIAS | | MONTSERRAT SABATE BORRELL | | PABLO GODAYOL RUIZ | | SUMMIT 4478 SL | | AGUSTI MONTANE DELCOR | | IVAN GUIU FARRE | | MARIA DOLORES ROCA BLANCH | | CRISTINA FARRE BOSCH | | FARAH ZAHTI TALBI | | MONTSERRAT OLIVA MANDAÑA | | BALTAFIN SL | | INVERSORA TUCKERTON SLU | | TANIA GELPI ESCANDIL | | OSCAR PLANES NOVAU | | ANTONIO DE PADUA BELLAUBI MIRO | | MARC MAYORAL SERRET | | POL MORAGUES OLIVA | | SONIA ROIGE VIDAL | | TERE ORTIZ CORBELLA | | ENRIC PUJOL ROVIRA | | CRISTINA PURROY CASTELLO | | MARIA ANTONIA ROVIROSA PIÑOL | | OLGA MARIA SANCHO ARASA | 274 | | | --- | | | | MANUELA BUERA GILABERT | | ROSA MARIA HOMEDES PERIS | | JOTOBE GESTIONS S.L. | | GROUP CLOP INVERSIO SL | | JUAN JOSE GISBERT FERRERES | | NESTOR GALIMANY SANROMA | | JORDI ROIG QUERALT | | MARIA ROSA BERTRAN CASALS | | BORRELL MICOLA SL | | JUAN QUINTIN GONZALEZ GUIJARRO | | MP ECONOMIST SL | | INMACULADA SAHUN JOVE | | JORDI BRULL MARGALEF | | BBR BATEA GROUP SL | | SUSANA MARIA JOVANI BELTRAN | | LLUIS CASANOVA LEON | | ANTONIO FORNOS ISERN | | JAUME FORNOS NAVARRO | | ANTONIO VICO ARCE | | ABEL ISERN ROIG | | GUADALUPE FORNE TENA | | JOAQUIN SERRA BERTRAN | | JORDI ALUJA OSSO | | | | --- | | | | EVA MARIA GUTIERREZ CARRASCO | | BARBARA FERNANDES DIAS | | VICTOR MANUEL DIAZ MARRON | | CECILIO ALVARADO GARCIA | | RAQUEL BARRERO GORDILLO | | OSCAR RODRIGUEZ ROMERO | | MERCEDES GARCIA DURAN | | RAFAEL SALGUERO VARGAS | | MARIA EVA NUÑEZ GONZALEZ | | SATURNINO QUIÑONES GARCIA | | MARIA JOSE VERA HERNANDEZ | | ENRIQUE JONATAN EXPOSITO CAÑA | | FELIX ALFONSO TORRADO DIAZ | | ELADIA MARIA ROMERO FERNANDEZ | | ELENA PUERTO GALVEZ | | JOSE MARIA MANZANO CIDONCHA | | JUAN MIGUEL ALFARO GONZALEZ | | CARLOS MIGUEL GIJON MELENDEZ | | MARIA MERCEDES GARCIA SANTANA | | ANGEL LUIS ALFARO GONZALEZ | | MARIA DEL CARMEN LEDESMA COUTO | | LUIS MARCELINO NARVAEZ MACIAS | | VENERO MARTIN S.L. | | | | --- | | | | MIGUEL RODRIGUEZ GARCIA | | ARCADIO PAREDES ROMERO | | PEDRO MANUEL BALSERA GARCIA | | JOSE CARLOS GARCIA SANCHEZ | | ELENA LAJA MONTES | | MARIA FATIMA SANCHEZ MILLAN | | MARIA TRINIDAD BRIEVA DOMINGUEZ | | MARIA CARMEN CIUDAD MORENO | | MARIA INMACULADA LUENGO MARIN | | VALENZUELA MARTIN ASESORES S.L. | | ANSELMO HERNANDEZ RANZ | | JOSE GAMERO MUÑIZ | | ASEVAL ASESORES S.L | | MANUEL IVAN BOTE DIAZ | | MARIA LUISA VALIENTE LORENZO | | LARA & RAUL ASOCIADOS SL. | | SOLEDAD GALAN FREJO | | SERVICIOS FINANCIEROS ROBERTO MARTIN RIVERO S.L. | | SARA CRIADO ESTEBAN | | SERMAR ASESORES FINANCIEROS S.L. | | ANABEL SANCHEZ MARTIN | | ANA MARIA LOPEZ OVEJERO | | PATRICIA GUIJO LOZANO | 275 | | | --- | | | | ALEJANDRO BLANCO SANCHEZ | | ALBERTO VAZQUEZ OLMEDA | | MARIA ROSA AMPARO BLAZQUEZ FRAILE | | VICTOR TOME LLANOS | | ALICIA ESTEBAN GARRIDO | | ANGELICA MONTEJO ASENSIO | | MARIA ANGELICA RODRIGUEZ OLIVEROS | | REYES MARTIN MORENO | | ANA MARIA GARCIA DOMINGUEZ | | ROBERTO CABALLERO MARTIN | | GARCIA DIAZ 2007 SL. | | ANA MARIA MORALES NUÑEZ | | NOEMI VIVAS SANCHEZ | | ALMUDENA GARCIA SANCHEZ | | PATRICIA ACOSTA SERRADILLA | | JUAN HERNANDEZ TORRES | | VERONICA GOMEZ MONTERO | | OLMO JULIAN PUERTO FERNANDEZ | | SERVICIOS FINANCIEROS AHIGAL SL. | | RUIDEMYR SL. | | VIRGINIA VELASCO MAJADA | | LAURA FERNANDEZ TORIBIO | | JUAN PEDRO GIRON ALONSO | | | | --- | | | | BELEN GONZALEZ BERMEJO | | DAMIAN CEBALLOS SORIA | | LAURA MARTIN PALOMO | | CRISTINA PODEROSO TENA | | BLANCA MARIA HOLGUIN GALAN | | CRISTINA DIAZ PIZARRO | | JUAN MIGUEL GOMEZ LOPEZ | | MARIA LUZ IMIA RIVERA | | OSCAR BARREIRO RODRIGUEZ | | OSCAR PARDAL ANIDO | | SERBAN AGUIÑO SL | | HECTOR PIÑEIRO MARTIN | | SONIA LANDROVE MARTINEZ | | MARIA CARMEN GONZALEZ BARRAL | | SILVA&RUA ASOCIADOS SLU | | SOLFIN CONSULTORIA DE MERCADOS SL | | JORGE VICENTE FRANCO | | JOSE MANUEL AMEAL MAS | | MARIA LUISA VALIÑO IGLESIAS | | PILAR VILA AYERBE | | DAVID GONZALEZ BECEIRO | | JUAN JOSE MARTINEZ GONZALEZ | | ANGEL LUIS GONZALEZ CASTRO | | | | --- | | | | MARIA ROCIO LOPEZ TABOADA | | MARIA CRISTINA SANCHEZ UZAL | | FRANCISCO FERREIROS LOPEZ | | CELIA MONICA MARTINEZ OTERO | | MARIA ELISA CAMBEIRO CAAMAÑO | | VILA LEMA SL | | ELSA MARIA TAPIA YACAMAN | | MANUEL MARIA GARCIA FERNANDEZ | | ANA BELEN DUARTE FIGUEIRAS | | MARIA CARMEN CEREIJO VARGAS | | OSCAR GONZALEZ BLANCO | | DAVID VALIN ANTON | | JOSE MANUEL SOBREDO SIGUEIRO | | JOSE MANUEL VAZQUEZ BERTOA | | ANABEL PALLAS FUENTES | | PAULA EIRIZ OTERO | | JOSE ALFONSO FUENTE PARGA | | MARTA MARIA COPA PEREZ | | JOSE MANUEL CAPON FERNANDEZ | | MARIA ANGELA MUÑIZ ARROJO | | ANGELINA CUESTA BERAMENDI | | DANIEL VIEIROS CAMPOS | | MANUEL ARTURO DOVALE VAZQUEZ | 276 | | | --- | | | | IVAN GONZALEZ MARTINEZ | | ADRIAN TELLA VILLAMARIN | | ALEJANDRO GIADANES TORREIRA | | TATIANA RODRIGUEZ FERNANDEZ | | JOSE ANGEL RODRIGUEZ PRIETO | | JOSE LUIS FARIÑAS PEREZ | | MIGUEL ANGEL FUENTE REGO | | ADRIAN MONTERO VARELA | | NATALIA LOPEZ LOPEZ | | MARIA JOSE SALGADO ALVAREZ | | TANIA LUCIA TEIXEIRA RODRIGUEZ | | MONICA ALVAREZ ALVAREZ | | CESAR RODRIGUEZ SOTELO | | ALEJANDRO PIÑOL PEREZ | | SERVICIOS FINANCIEROS CORREA SOCIEDAD LIMITADA | | MARIA DEL CARMEN CARBALLO GOMEZ | | JOSE RAMON DOMONTE RODRIGUEZ | | JOSE LUIS PRIETO PARADA | | ANXO VAZQUEZ BLANCO | | DIEGO VAZQUEZ FERNANDEZ | | MARIA MARTINA GONZALEZ ANDRADE | | ALEXIS FERNANDEZ FREIJEDO | | ANDREA SAYANS RIVEIRO | | | | --- | | | | ASESORES FINANCIEROS VIANA SL | | LUCIA ALVAREZ GONZALEZ | | QUIRINO MASCITTI | | OSCAR JUSTO ALVAREZ | | SERVICIOS FINANCIEROS CARRAL SL | | PABLO SEIJO NOVOA | | NATALIA DIOS OUTEDA | | INTERMEDIACION FINANCIERA DEL NOROESTE SL | | SUSANA FARIÑA FERNANDEZ | | CARLOTA RODRIGUEZ VARELA | | GAGO Y SOUTO FINANCIAL SERVICES S.L. | | MARIA JESUS CAMPOS LOURO | | JOSE MANUEL NIETO CASTRO | | SERVICIOS BANCARIOS FORCAREI SL | | LUCIA MARTIN GRANDE | | AS NEVES ARBO | | CANDIDO JUNCAL RUA | | CELAVEDRA S.L | | NIEVES NUÑEZ PUGA | | MIRIAM SAMPAYO IGLESIAS | | BORJA MENDEZ VAZQUEZ | | SERVICIOS BANCARIOS SOUTELO SL | | BEATRIZ SANCHEZ MUÑOZ | | | | --- | | | | OSCAR NUÑEZ PUGA | | FABIAN MANTEIGA VARELA | | BRAIS MIDON LOPEZ | | JAVIER NOVIO MIDON | | LUIS ALFONSO MARTINEZ JIMENEZ | | FRANCISCO JAVIER ARTEAGA LOPEZ | | TERESA ROLDAN QUINQUER | | ASIS DE FEREZ S.L | | PEDRO CARO CANO | | LETICIA MARIA MARTINEZ ABAD | | JOSE CARLOS LOZANO CANO | | LUIS JAVIER NAVARRO SIMON | | MARIA TRINIDAD SORIANO RAMIREZ | | JUAN MONTERO RODENAS | | LUCIA CARO ESPARCIA | | JUAN FRANCISCO GARCIA JUNCOS | | CARMEN CARLA PEREZ CUESTA | | MARADRI SERVICIOS FINANCIEROS SL | | RAFAEL ROMERO RODRIGUEZ | | QUIROS & NAVAS SERVICIOS FINANCIEROS SL | | ELVIRA CASTRO FERNANDEZ | | JOSE ANTONIO LOPEZ LOPEZ | | FRANCISCO FLORES ROMERO | 277 | | | --- | | | | ARREAZA SERVICIOS FINANCIEROS S.L. | | MARIA THAIS ROMERO NAVARRETE | | MARCOTE ASESORES SL | | GLORIA MOLINA RIVALLO | | JUAN ANGEL ALCAZAR VERGARA | | BEATRIZ BLANES RUIZ | | RUBEN LOPEZ CARMONA | | ARANCHA LOPEZ SANTOS | | SONIA ARNAO VILLANUEVA | | SANDRA ORTEGA QUILON | | MARIA PAZ CULEBRAS RAMOS | | JESSICA MARIA SEGADOR RISCO | | EVA COZAR CAÑADAS | | MARIA JOSE PACHECO GALLEGO | | EMPRESA GESTORA JUAN JOSE MUÑOZ S.L. | | JOSE JUAN SANCHEZ SORIANO | | PAULA MARTINEZ GARCIA | | CARLOS ARCAS CHECA | | FELIPE CHILLARON CASTILLO | | MONICA CANO CANO | | CARLOS MORENO LOPEZ SOLORZANO | | EVA LEON BELINCHON | | FRANCISCO DAVID SAIZ CANO | | | | --- | | | | LUCIA PEREZ CUELLAR | | DAVID MOYA LUCAS | | AROA GOMEZ LOZANO | | JESUS GABALDON MARTINEZ | | HECTOR CANO SAZ | | ESTHER PEIRO ORTEGA | | ANA CRISTINA MUÑOZ ALVAREZ | | GISELA MENENDEZ CALVO | | PATRICIA MONTERO DURAN | | MARIA TERESA OLMEDA PICAZO | | DAVID JIMENEZ MARTINEZ | | PEDRO JESUS ROLDAN PRIETO | | NURIA AMO LETON | | ANA MARIA RODRIGUEZ VARGAS | | JAVIER MONGE LOPEZ | | ALVARO MAGRO SANZ | | MERCEDES LOPEZ MAYORAL | | JOSE DEL OLMO LOZANO | | CRISTINA GOMEZ GUTIERREZ | | ANTONIO SANCHEZ ARGUELLES | | SILVIA BRAOJOS SANCHEZ | | JUAN JOSE TAMUREJO CARDOSO | | ANA MARIA RODRIGUEZ MORENO | | | | --- | | | | PEDRO LUIS CORTES BLANCO | | GEMMA GUTIERREZ SL | | ALFONSO ILLAN GARCIA-ROJAS | | MARIA LOPEZ MARTINEZ | | MIGUEL ANGEL GARCIA RODRIGUEZ | | CARMELO PACHECO MARIN | | BEATRIZ ARROYO AVILA | | VILLASEQUILLA AP SL | | YEBEGEST S.L. | | INMACULADA TORRES BERMUDEZ | | CRISTOBAL NAVARRO VEGA | | IVAN QUINTANA ROJAS | | DIANA DIAZ ANGELINA | | CRISTINA TORIJA PRIETO | | JOSE LUIS HERNANDEZ-SONSECA MIRANDA | | CECILIO PARRO CORTES | | DIEGO GALLEGO VALVERDE | | ANGELA ZURITA MARTINEZ | | MARIA DEL PILAR MUÑOZ GONZALEZ | | MARTA LUJAN FERNANDEZ | | MARIA EUGENIA DE LA CRUZ DE LA ROSA | | SARA PULIDO PANADERO | | JESUS ALVARADO CAMARA | 278 | | | --- | | | | MIGUEL MORENO ALONSO | | MARIA LUISA SANGUINO GUTIERREZ | | MIGUEL GARCIA TAPIA | | JESUS MATEO HIDALGO MARTIN | | BEATRIZ LOPEZ MONTEJO | | BARRIOS DE LA CRUZ S.L. | | GESLON 2025 SL | | JAIME VALDES BRAVO | | JOSE ANTONIO REAL MUÑOZ | | ROSA ISABEL BENEITEZ SALINERO | | MARIA CARMEN SANCHEZ PEÑA | | SANDRA COFRADES SANCHEZ | | FERNANDO GARCIA BARATAS | | MARIA TERESA PACHECO SANCHEZ | | NURIA BRAOJOS SANCHEZ | | SAGRARIO MAQUEDA RUIZ | | JOSE MARIA FERNANDEZ RAMIREZ | | MARCOS GARCIA-DIES PASTRANA | | MIGUEL ANGEL ORTIZ MIGUEL | | LUIS ALBERTO MASEDO DEL CASTILLO | | ALEJANDRA SANCHEZ JUAN | | DAVID RUIZ MARCHESE | | ALEJANDRO GARCIA GUERRERO | | | | --- | | | | TAGOAN JUAREZ SL. | | ALBERTO ANDION ACEDOS | | LUIS CARLOS SEPULVEDA SANCHEZ | | RAUL VEGA ROMERO | | MARIA LETICIA GUTIERREZ SANZ | | CARLOS ALBERTO PALACIOS MARTIN | | AYZA FINANZAS SL | | ANTONIO BERNAL MERINO | | MARIA PILAR MARTIN SANCHEZ | | ALVARO FERNANDEZ ROCAMORA | | ANA VANESA VILLASECA GARCIA | | SOLFI SOLUCIONES SL | | FRANCISCO RICARDO BELLO GOMEZ | | JUAN CARLOS FUSTER CACERES | | JESUS HERAS SANCHEZ | | MARTA ZAMBRANO PEREZ | | DANIEL NAVAS ALONSO | | MARIA FERNANDEZ RUFO | | MARIA DE LAS NIEVES  CALDERON IZQUIERDO | | MARIA TERESA PEREZ PEREZ DE LAS VACAS | | PAOLA GARCIA NUÑEZ | | ANDREA PRATS SEGURA | | CRISTINA HIDALGO GARCIA | | | | --- | | | | ANGELA MARTIN PUENTES | | JESUS MAILLO NIETO | | FINANCIAL ADVANTAGES SL | | EDUARDO GOMES HORCAJUELO | | MARIA PILAR PEREZ NAVARRO | | MARIA LUZ SANZ DELGADO | | ROBERTO BLANCO GARCIA | | JESSICA LIMA BLANCO | | MARIA TERESA JIMENEZ PACIOS | | BEATRIZ TORRENO NIETO | | INJOISA INTERMEDIACION FINANCIERA SL. | | DIEGO CAÑAMERO NAVARRO | | RUBEN BERNALDO DE QUIROS DOMPABLO | | PATRICIA CONDE GARCIA BLANCO | | LUCIA DIAZ PRUDENCIO | | JOSE MANUEL TORRES MIGUEL | | ISABEL MARTINEZ MUÑOZ | | FRANCISCO JAVIER RIVAS VALENZUELA | | CLAUNA23 SL | | ALFREDO ROLDAN FERNANDEZ | | AGURTZANE ITZIAR AGUIRRE COLECHA | | ALOE CONSULTING S.L. | | DAVID VEA MARTINEZ | 279 | | | --- | | | | IEA SERVICIOS FINANCIEROS S.L.U. | | SERVICIOS ECONOMICOS GESPEREZ SL | | MKS GESTION FINANCIERA SL | | AGENTE COLABORADOR ORIO SL | | MARIA MANUELA GONZALEZ CUESTA | | JOSE MANUEL MUÑOZ EZQUERRO | | CRISTINA SOLEDAD NAVARRO MACHIN | | NEYRAGUS 2024 S.L | | MARIA ALMUDENA MORENO NAVARRO | | UNAI LEKUBE ARANBERRI | | MIGUEL LLANO ABAITUA | | JUAN JOSE ARAGONESES MARTINEZ | | JESUS RAMON HERNANDEZ GARCIA | | NEREA SOBRADILLO TRUEBA | | JAVIER COBO MENA | | IÑIGO MARTINEZ GARCIA | | BRUNO MARTIN GARCIA | | XUELING HOU | | JADARREJO SL. | | ROSA CARRERES LUCAS | | ALICANTE VALLEY SERVICIOS FINACIEROS S.L. | | ECONHOMBRIA SL | | MIRIAM PEREZ SORIA | | | | --- | | | | MARIA DE LOS ANGELES GARCIA PEREZ | | TRAKZIONA INVEST SL | | JOSE ANTONIO SANCHEZ NAVARRO | | PIC LLOCH MONTGO SOCIEDAD LIMITADA | | ANDRES RIVERO JIMENEZ | | MR2 SERVICIOS FINANCIEROS SL. | | ALICANTE COSTA SERVICIOS FINANCIEROS SL | | BENISSA C M SERVICES S.L. | | ALBERO PAYA FINANCIEROS SL | | C & M FINANCIAL SERVICES SL | | MERCEDES SABATER JIMENEZ | | SANMAFRAILES S.L. | | MARIA DELS DESAMPARA ROSSELLO MORELL | | MIGUEL ANGEL VIDAL JOVER | | JOSE ALFONSO TARI ESCLAPEZ | | MAGDALENA JOVER SELLER | | ISABEL MARIA CARBONELL SERNA | | JOSE JUAN FERRANDEZ SANCHEZ | | BEATRIZ SALA GARCIA | | DRIMTY S.L. | | MONICA SERESOLA ALENTADO | | ACF GESTIO I FINANCES SL | | ALEXANDRA FRANCH CANALDA | | | | --- | | | | VICENTE MANUEL MARTI SEGARRA | | JOSE IGNACIO CANTO PEREZ | | RAFAEL BELLMUNT BELLMUNT | | SILVANA JAIME GARCES | | RUBEN TRAVER SALES | | SONIA BELLMUNT SAURA | | JOAN ANDREU GABARRI LLOP | | NUMACER SL | | ANDRES MINGUEZ LUJAN | | PAULA GRACIA CABRERA COLONQUES | | GESFINPRO S.L. | | BEATRIZ PEREZ GARCIA | | MIGUEL ALCALDE PITARCH | | LAURA ERES FUENTES | | MARTA HERREROS LOPEZ | | FRANCISCO JAVIER MORALES MURCIA | | VIVANCOS ROS SL | | JUAN ANTONIO CANTERO SANCHEZ | | JOSE MANUEL AYALA ARNALDOS | | JUANA MARTINEZ MARTINEZ | | SOZAVE CP SL | | LUBESAGA SL | | SERVICIOS BANCARIOS GARCIA ESTELLER SL | 280 | | | --- | | | | SERVICIOS FINANCIEROS EL CAMPILLO 2021 | | EUGENIA DURAN HERNANDEZ | | FERNANDO GABARRON FERNANDEZ | | R&L NAVAMAR SLU | | SERVICIOS FINANCIEROS FUENTE ALAMO 2024 SL. | | AZARBE COLABORACIONES S.R.L | | SERGIO VIVANCOS ALFARO | | DIEGO MARTINEZ OTON | | BG ESTELLER SLU | | MIGUEL ANGEL FERNANDEZ MENDEZ | | MIREYA GARCIA MARTINEZ | | ALEJANDRO SANCHEZ BERMUDEZ | | ANA MARIA LOPEZ MARTINEZ | | ELENA PARDO MARMOL | | ANA DURAN HERNANDEZ | | OSMON SERVICIOS FINANCIEROS SL | | MANSARI FINANZAS S.L. | | ENRIQUE SATURNINO MORENO | | BASKY INVERSIONES FINANCIERAS SL | | FORUM 20 SLU | | DONET RIPOLL FINANZAS S.L | | CASTEL GANDOLFO S.L | | FINANZAS E INVERSIONES ALBAL SL | | | | --- | | | | JEC INVERSIONES EN CAPITAL SOCIEDAD LIMITADA | | FERNANDO DONET ALBEROLA | | MARIA JOSE CABALLERO GRAU | | YOLANDA CASTILLO VILA | | MARIA TERESA BROCH RUBERT | | LIDIA CARRASCO MARIN | | MARIA INMACULADA LATORRE CANA | | BANSACLE SOCIEDAD LIMITADA. | | MISTERA BUSINESS SOLUTIONS S.L. | | SAMAI FINANZAS SL | | VANESSA SORO GINER | | ROSA MARIA BLAY PASCUAL | | SANDRA CHOVER GOMEZ | | JCP FINANCIAL MEDITERRANEA SL | | MBI SERVICIOS FINANCIEROS SLU | | VANESA GONZALEZ VILA | | ALBERTO FORTEZA MONFORT | | IVAN LOPEZ DURA | | SUSANA DONAT CRUZ | | MUNICH FINANZ S.L | | R&B SOLUCIONES FINANCIERAS S.L.U. | | JOSE JOAQUIN APARISI GRAU | | CARLES ROYO DELPOZO | | | | --- | | | | FRANCISCO JAVIER FORNER GARRIDO | | MARTA FAUS BLANES | | JALCAIDEN SOCIEDAD LIMITADA. | | MIGUEL GARCIA ABAD | | CRISTINA SEVA SAVALL | | JUAN JOSE MONTEAGUDO MARTINEZ | | ALEJANDRO SANTAELLA FERRER | | SILVIA GARCIA SENDRA | | SERVICIOS FINANCIEROS SANLO SL | | PLAZA SERVICIOS FINANCIEROS S.L.U | | CORDOBESA DE INVERSIONES PUNTAS LEON S.L. | | A.A.F.F. RUTE SL | | FINANTOR 2017 SL | | CARBALLO & CARO 2019 SL | | GRANDERSAN SLU | | VINUESA & MOCHON 2014 SLL | | ROLARG SERVICIOS FINANCIEROS S.L. | | BURMA AGENTES FINANCIEROS S.L. | | MONICA CARRANZA S.L.U. | | TINTO & SANTA ROSA | | TROYANO FINANCIEROS 2021 SL | | ABU ROAD S.L. | | RODRIGUEZ CALS FINANCIERA SL | 281 | | | --- | | | | GESTION FINANCIERA MALACITANA 2007 SL | | RC 2007 FINANCIEROS S.L. | | ESTEPONA FINANCIEROS SL | | FINANSANDO S.L. | | JOLUANCA 2006 SL | | BOPECON INVERSIONES SL | | CHARUMA S.L. | | TREZAVILLA SLU | | NUBARPOL SL. | | BUSINESS AND PERSONAL SERVICE S.A. | | LAP ASTURIAS S.L. | | GONZALEZ Y NAVES S.L. | | GESBANCYL SL | | JOSE BERZAL MIGUEL | | MATEU & SANTANDER S.L. | | DIPTOS S.L. | | JAVIER BLANCO LOPEZ | | GESTION INVERGARA S.L. | | MARTI FORTUNY PLANAS | | FINANZAS SAN ANDRES S.L. | | ALEXANDRE UTSET BADIELLA | | | | | | | | --- | | | | MATARO ASESORES LEGALES Y TRIBUTARIOS S.L. | | AA FF NV FINANCERA 2018 SL | | GRUP BBR GESTIO PRIVADA SL | | AGENCIA FINANCIERA ULLOA S.L. | | SERCOM ASFICO AGENTES FINANCIEROS S.L. | | MEDA FINANCIERA S.L. | | SERVIBAN OURENSE SL | | INTERMEDIACION FINANCIERA RIAS BAIXAS S.L.L | | BNT 2008 AGENTES FINANCIEROS SL | | ASESORAMIENTOS FINANCIEROS TEM 2012 SLL | | LASTRAS AGENTE FINANCIERO SLP | | FINANZAS NUEVA ERA S.L. | | ZONA 4 SERVICIOS FINANCIEROS S.R.L. | | BUZABRIN S.L. | | DE-TWO Y MAS INVESTMENT SERVICES S.L. | | COFARESA SERVICIOS FINANCIEROS COMPLEMENTARIOS SAU | | G S G GRUPO CORPORATIVO DE SERVICIOS S.L. | | BANFORTUNIA S.L | | SOLUCIONES DE PATRIMONIO E INVERSION S.L. | | TABULA AGO S.L. | | SISMOINT SL. | | | | | | | | | | | | --- | | | | OFISFIN SL | | ALESA CAPITAL SL | | AGENTES XIRIVELLA SL | | HOTRARESCON S.L. | | VIMAGARMA A.F. SL | | AYALA MARTINEZ MELERO SLL | | RAUL PABLO OLMO | | MARIA ELENA TREMPS ALDEA | | INVERS TERRA FERMA SL | | FINANCERES ARO S.L. | | FRANQUICIES FINANCERES LLEIDA S.L. | | INVERSIONS RIBAGORÇA SL | | SAVINGS ELX 2014 S | | ASEMAR FINANCIERA SL | | GESTIONES FINANCIERAS FERRER Y GARCIA 2015 SL | | SEMAGERA S.L.L. | | BANEST BLANES SL | | TRAMYGEST FINANCIERA S.L. | | AA FF OLESA 2019 SL | | ANPADU INVERSIONES S.L. | | EMA VILATORRADA 2007 S.L. | | | | | | | | | 282 #### Directors’ report #### Banco Santander, S.A. 1. Introduction Banco Santander, S.A. ('the Bank' or 'Banco Santander') is a Spanish bank, incorporated as a sociedad anónima in Spain and is the parent company of Grupo Santander or Santander. Banco Santander, S.A. operates under the commercial name Santander. Banco Santander operates through a branch network distributed in Spain and abroad. On 7 June 2017, Banco Santander acquired the entire share capital of Banco Popular Español, S.A.U. (‘Banco Popular’) in an auction in connection with a resolution plan adopted by the European Single Resolution Board (the European banking resolution authority) and executed by the FROB (the Spanish banking resolution authority) following a determination by the European Central Bank that Banco Popular was failing or likely to fail, in accordance with Regulation (EU) 806/2014 establishing a framework for the recovery and resolution of credit institutions and investment firms. On 24 April 2018, Banco Santander announced that the boards of directors of Banco Santander, S.A. and Banco Popular Español, S.A.U. had agreed to an absorption of Banco Popular by Banco Santander. The legal absorption was effective on 28 September 2018. The directors’ report has been prepared based on the accounting and Management records of Banco Santander, S.A. The financial information included in this directors’ report has been prepared in conformity with the Bank of Spain Circular 4/2017 of 27 November on Public and Reserved Financial Information Regulations and Financial Statements Forms, and subsequent modifications. 2. Situation of Banco Santander Santander is a Retail and Consumer global powerhouse and one of the largest banks in the eurozone. At 2025 year end, we had EUR 1,867,515 million in assets, ranking first in the euro zone by market capitalization in the eurozone EUR 147,921 million as of 31 December 2025. The Santander Way. Our Purpose is to help people and businesses prosper. Our Aim is to be the best open financial services platform, by acting responsibly and earning the lasting loyalty of our stakeholders by being Simple, Personal and Fair in all we do. Thanks to the advantages provided by our network effect, our geographic and business diversification and our scale, over the past four years we have succeeded in surpassing our record results year after year through our global business model and ONE Transformation. This has enabled us to operate more efficiently through the operational leverage delivered by our transformation strategy. Within the Group, we  engage in a wide range of typical banking activities, operations and services in order to meet all our customers' needs. We do not merely meet our legal and regulatory obligations but we also aim to exceed the expectations of our stakeholders: employees, customers, shareholders and communities. In detail: We are committed to continuously improving the experience of the 198,403 employees who are part of Santander. Our goal is to attract and retain the best talent by offering an attractive value proposition that prioritizes personal growth, an inspiring culture and working conditions that ensure the health and well- being of our people through initiatives that help improve work-life balance. Furthermore, we promote an environment that prioritizes inclusion, where all voices are valued and individuals feel safe and free to express their identity, ideas and opinions. We continue to use our listening channel, Your Voice, to periodically assess the engagement and experience of our professionals, which once again showed excellent results in 2025. 283 Customer focus is an essential part our strategy. We are a Retail and Consumer global powerhouse with 180 million customers. We continue building a digital bank with branches to be the number one bank for our customers. By listening to our customers' needs, we are boosting Santander's position as their trusted financial partner. We continue to change and adapt to our customers' evolving needs to offer the best products, an agile and frictionless customer experience for daily needs and competitive prices. Throughout 2025, we undertook significant initiatives to transform customer experience and strengthen our value proposition. This was reflected in our customer growth rates and Net Promoter Score (NPS) improvement where we are one of the top three banks in nine of our markets. In addition, in the digital space, we enhanced self-service capabilities and user experiences, by incorporating AI to simplify and streamline processes and remove operational burdens from our employees, enabling them to focus on advising customers while delivering a more personalized service. At year end, we had 7,124 branches, including traditional ones and other specialized centres for businesses, private banking, universities and other customer segments. These physical spaces have evolved to integrate traditional services with digital facilities. With this approach, we continue to expand our Work Café branch concept, through which we seek to establish collaborative spaces, which enable native digital customers to have a better experience and integrate their financial transactions into their daily lives. At the same time, customer interactions continued their structural shift towards digital and remote services with high user experience standards. As at 31 December 2025, we had more than 63 million digital customers (6% more than in 2024) and 70% of our products services are now digitally available (up from 62% in 2024). At Santander, we appreciate the value of the human connection that our branch network provides and are mindful of our most vulnerable customers' needs, responding with tailored offers, thereby increasing customer loyalty and improving customer experience. We are committed to creating products and services tailored to our customers’ needs. We have adapted our branches, products, services and channels to ensure universal physical and digital access for people with disabilities and older adults. In the countries where we operate, we offer value propositions specifically aimed at senior customers. For example, we provide tailored products for retirees in Mexico and Argentina, services such as SuperLinha Senior in Portugal to support older people with limited digital skills, and third-party access initiatives in the UK to assist older individuals who require carers. In Spain, we provide customers in limited access (or sparsely populated) areas access to credit and help combat social exclusion in communities with less than 10,000 inhabitants, maintaining our Correos Cash agreement to provide access to cash in areas that might otherwise have been left unattended with a non-digital solution through rural letter carriers. In Argentina, we have financial inclusion branches and remote agents operating in vulnerable communities. In Uruguay, mobile branches have been deployed across the country since 2020 to reach areas with low levels of financial inclusion. Additionally, within our financial inclusion programmes, we continue to expand initiatives such as our microfinance programmes in Latin America (Prospera in Brazil and Colombia, Tuiio in Mexico and Surgir in Peru). We also complement our support for financial inclusion with financial education programmes and financial health solutions for customers. In Spain, for example, Santander participates in the Social Housing Fund, which facilitates rental access for low-income individuals and families, and we have initiatives to support groups facing difficulties in accessing credit. In the US, we provide loans to small businesses operating in low- and moderate-income communities. Thanks to all our efforts in financial inclusion, we have achieved our goal of reaching 5 million people who benefited from one of our financial inclusion initiatives over the 2023–2025 period. We also support our communities. The Group has continued to develop programmes in the communities where it operates to help address existing social needs. Our support for communities focuses on education, employability and entrepreneurship, and is complemented by the provision of targeted financial education and assistance for vulnerable individuals. Moreover, we have a strong track record of backing cultural and other social initiatives. For our shareholders, we delivered solid financial results in the year and met all our targets we had set for 2025. Grupo Santander is diversified in three geographies well balanced between mature and emerging markets, and operates mainly in 10 core units, where it has significant market shares. Our activities are organized under five global businesses: Retail & Commercial Banking, Digital Consumer Bank, Corporate & Investment Banking, Wealth Management & Insurance and Payments. 284 3. Financial performance 3.1 Economic outlook: In 2025, Santander operated in an environment characterized by gradual reductions in interest rates by the majority of central banks, as a result of declining inflation. This occurred in a context marked by continuing geopolitical and trade tensions. However, despite some slowdown, the world’s major economies maintained a good rate of economic growth. In turn, labour markets were resilient, with unemployment rates remaining low in more than half of the countries in which Santander operates. Our core regions' economies performed as follows: Eurozone (GDP in 2025: +1.5%). The economy resisted tariff hikes imposed by the US, as the services sector compensated weaker manufacturing. Household consumption improved and, after a weak start to the year, investment showed signs of recovery in the second half, particularly investment in intangibles. Performance was mixed by country, with most of the momentum coming from Ireland, which grew by more than 10%, compared to Germany, among others, whose economy only increased 0.4%. Inflation fell within the European Central Bank’s (ECB) target, which led to reductions in interest rates to 2% in June, a level estimated to be within the neutral range for the economy. Spain (GDP in 2025: +2.8%). Spain recorded growth well above that of the eurozone driven by domestic demand. Household consumption remained robust, supported by strong job creation and population growth resulting from immigration. The investment component grew the most in the year, especially in equipment. On the other hand, foreign trade hindered growth: goods exports rose slightly and services exports moderated while imports grew well above. Inflation ended the year at 2.9%, with service prices accelerating at the end of the year and growing above 3.5%. To complete the information with the performance indicators of the rest of geographies where the Group is present, see the Consolidated Directors’ Report. 3.2 Balance sheet and results: Banco Santander, S.A. is the Parent Bank of a financial group that operates in different countries through different businesses therefore its financial statements not only reflect its commercial activity in Spain, but also the activity derived from being the head of the Group. This last aspect makes it difficult to analyse its evolution without distinguishing the results obtained from the commercial activity from those more directly related to its holding nature. In 2025, commercial activity remained solid, supported by strong new customer acquisition during the year, improved customer engagement and higher digital adoption, with 78% of our products and services digitally available. We also increased our market share in payrolls, pensions and Bizum registrations. With regard to the statement of financial position, as at 31 December 2025 the Bank’s total assets amounted to €836,783 million, representing an increase of 5.28% compared with the previous financial year. Loans and advances to customers stood at EUR 354,675 million at year-end, representing an increase of 8.90% compared with the previous year, driven by growth in consumer lending, corporate loans and wholesale banking. Customer deposits stood at EUR 437,657 million at year-end, reflecting an increase of 12.01% compared with the previous financial year. Demand deposits rose by 5.14%, while time deposits increased by 25.16%, showing growth in both individual and corporate customers. Net interest income amounted to EUR 6,502 million in 2025, 5.97% lower than in the previous financial year, negatively impacted by interest rate developments. This was partially offset by the strong pace of activity, which led to growth in the loan and customer deposit balance sheet, as well as by the increase in the portfolio of debt securities. Income from equity instruments totalled EUR 6,691 million in 2025. This line includes dividends received from the Group’s subsidiaries. Net fee and commission income increased by 7.35% compared with 2024, reaching EUR 3,140 million, with growth in investment fund fees standing out. Net gains on financial transactions (including exchange differences) amounted to a profit of EUR 873 million, compared with EUR 918 million in the previous financial year, reflecting higher market results in wholesale banking. General administrative expenses (personnel expenses and other administrative expenses) amounted to EUR 5,419 million, an increase of 2.38%, with increases arising from inflation and the collective labour 285 agreement mitigated by efficiency measures in the retail banking business. Net impairment losses on financial assets amounted to EUR 1,162 million in 2025, representing 0.26% of financial assets at fair value through other comprehensive income plus financial assets at amortised cost. Impairment of investments in joint ventures or associates and of non-financial assets totalled EUR 1,485 million in 2025, while losses on non-current assets held for sale amounted to EUR 34 million. Distribution proposal of the Bank’s profit The board applied the current shareholder remuneration policy to the 2025 results. This policy sets a target to distribute approximately 50% of the Group's net reported profit (excluding non-cash, non-capital ratios impact items) split almost evenly between cash dividends and share buybacks. Additionally, on 5 February 2025, Banco Santander signalled its objective to allocate up to EUR 10 billion to share buybacks in relation to the 2025 and 2026 results, as well as expected capital excess. As part of this target, on 5 May 2025 Banco Santander announced its intention to distribute approximately 50% of the capital that will be released upon completion of the sale of its 49% stake in Santander Bank Polska S.A., through a share buyback of approximately EUR 3.2 billion in early 2026 and that, as a result, it could exceed the EUR 10 billion target. Upon announcing the agreements to acquire TSB and Webster on 1 July 2025 and 3 February 2026 respectively, Banco Santander confirmed its goal to distribute at least EUR 10 billion in share buybacks with regard to the 2025 and 2026 results and excess capital. Interim remuneration. On 30 July 2025, the board resolved to execute the First 2025 Buyback Programme worth up to EUR 1,700 million (equivalent to approximately 25% of the Group's net reported profit in H1’25). On 30 September 2025, the board resolved to pay an interim cash dividend against the 2025 results of 11.5 euro cents per share entitled to the dividend (equivalent to approximately 25% of the Group's net reported profit in H1’25), which was paid from 3 November 2025. Final remuneration. Under the 2025 shareholder remuneration policy: On 3 February 2026, the board of directors resolved to implement the Second 2025 Buyback Programme worth up to EUR 5,030 million and for which the required regulatory authorization had been obtained. The programme started on 4 February 2026. Under the shareholder remuneration policy in relation to the 2025 results, 1,830 million euros of the Second Buyback Programme correspond to c. 25% of the Group’s underlying profit for the second half of 2025. The remaining amount corresponds to an extraordinary buyback of 3,200 million euros, equivalent to approximately 50% of the CET1 capital generated in January 2026 following completion of the sale of 49% of Santander Bank Polska to Erste Group. On 24 February 2026, the board of directors resolved to submit to the 2026 AGM the approval of a final cash dividend in the gross amount of 12.5 euro cents per share entitled to dividend. Subject to AGM approval, the dividend will be payable from 5 May 2026. Once these actions are completed, total shareholder remuneration in relation to the 2025 results will be EUR 7,050 million (approximately 50% of the Group's 2025 net reported profit, excluding non-cash, non-capital ratios impact items), split almost evenly between cash dividends (EUR 3,520 million) and share buybacks (EUR 3,530 million). We have estimated these amounts on the assumption that, as a result of the partial execution of the Second 2025 Buyback Programme, the number of outstanding shares entitled to receive the final cash dividend will be 14,568,470,446. Therefore, the final amount may be higher if fewer shares than planned are acquired in the Second 2025 Buyback Programme; otherwise, it will be lower. See more information in section 9.2 Dividends and shareholder remuneration. 286 4. Trend information This directors' report contains prospective information on the directors’ plans, forecasts and estimates, which are based on what they consider to be reasonable hypotheses. Readers of this report should take into account that such prospective information must not be considered a guarantee of our future performance as the plans, forecasts and estimates are subject to numerous risks and uncertainties, our future performance may not match initial expectations. These risks and uncertainties are described in note 50 of the financial statements. We expect a mixed performance in 2026, depending on the region or country. A slight economic slowdown is expected in Brazil and the UK, while the US, the eurozone and Mexico are expected to recover moderately. The global outlook is uncertain due to geopolitical and trade tensions. Inflation is expected to continue to slow in most countries, converging towards the central banks' targets, although it is likely to do so at different rates between regions. Central banks such as the Fed are expected to complete their rate-cutting cycle in 2026. Significant changes in the unemployment rates are not expected, with most labour markets remaining resilient. Our macroeconomic forecast for 2026 by country/ region is as follows: Eurozone The eurozone is expected to experience a cyclical recovery in 2026, supported by the ECB's interest rate cuts since mid-2024 and fiscal policy initiatives, particularly increased spending on infrastructure and defence in Germany. Inflation is expected to remain in line with the ECB’s 2% target, underpinned by wage moderation, leading to a gradual reduction in service inflation, which was more persistent in 2025. In the medium term, the euro area faces the challenge of achieving sustainable economic growth, through policies that boost the domestic market, regulatory simplification and the strengthening of capital markets. Spain We expect economic growth to remain dynamic, although at a slightly lower rate than in 2025. Domestic demand will continue to be a main driver, supported by strong household consumption, while investment, the sector that grew the most in 2025, will benefit from the allocation of European funds before August 2026. Growth in external demand is expected continue to slow as imports, boosted by strong domestic demand, are expected to outpace exports. We expect job creation to continue, with the unemployment rate declining further towards 10%, despite the rise in active population. Inflation is expected to gradually converge towards the ECB's target, as the services sector is proving to be sticky. See more information in the Consolidated Directors’ Report. 287 5. Sustainability information This Statement of Non-Financial Disclosures of Banco Santander, S.A., which is part of the Individual Directors' Report, contains the non-financial disclosures set out in the Consolidated Directors' Report of Grupo Santander together with other material, pertinent, useful and comparative information on Banco Santander, S.A. that is appropriate to aid the an understanding of the trends, results, status and impact of the activities of Banco Santander, S.A., including information on matters of the environment, society, human rights, the fight against corruption and bribery, and personnel. When drawing up the non-financial information contained in this Statement of Non-Financial Disclosures, we considered the double materiality assessment that the Group conducts, based on the Corporate Sustainability Reporting Directive (CSRD). #### General information Banco Santander, S.A.’s purpose is to help people and businesses prosper. Our five sustainability pillars are: 1. Help our customers in meeting their goals in their transition to a low-carbon economy while also managing climate-related risks and impacts. 2. Help our employees develop by promoting an inclusive culture and learning and providing fair working conditions. 3. Contribute to the economic, financial and social development of our communities, with a special focus on education, employability and entrepreneurship. 4. Be a trusted partner to our customers, with products and services that adapt to their needs, while applying responsible practices, supporting their financial inclusion, and protecting their information. 5. Act responsibly through a strong culture, governance and conduct. The Group's board of directors is responsible, among other things, for approving the sustainability agenda and setting the sustainability strategy. The responsible banking, sustainability and cultural committee (RBSCC) assists, among other matters, in the development and implementation of the Group's sustainability strategy and responsible business policies, in support of the board of directors, through monitoring, supervision and evaluation of these. Additionally, other committees analyse specific sustainability matters. The audit committee is responsible for overseeing and assessing the financial and non-financial reporting process, as well as the internal control systems. The Group has implemented an Internal Control System that complies with the most demanding international standards. The main internal regulations that support the integration of ESG criteria into our business model are: Responsible banking framework Establishes responsible banking as a strategic issue for Santander and is directly applicable in all local units. Corporate financial, management and sustainability accounting and reporting framework Sets out the principles, guidelines and actions to prepare accounting, financial and management information, as well as sustainability information, that must be applied to all the Group's entities as a fundamental element for their good governance. Responsible banking policy and sustainability Describes our sustainability principles, objectives and strategy to generate long-term value for our stakeholders, including the protection of human rights. Responsible banking model Establishes the roles and responsibilities of the first, second and third line of defence for all sustainability activities to progress the sustainability agenda, embed ESG standards and achieve our objectives. In addition to these rules, which apply to all the Group’s units and businesses, we have policies on responsible employee practice, responsible customer practice, donations, and business conduct. With regard to risk management, the identification of non-financial risks associated with our activity is a priority for Banco Santander. The bank has implemented processes for their identification, analysis and assessment in those transactions subject to the Bank’s policies and to external commitments such as the Equator Principles, an initiative to which Banco Santander has been a signatory since 2009. In Spain, we are a member of Forética, the Spanish Association of Sustainable Growth, and Fundación SERES. In 2025, we maintained our position in MSCI (AA) and Leadership level in CDP (score changing from A to A-). We scored 9.9 points in Sustainalytics, improving to ‘Negligible Risk’ category, and remained in the C+ category in the bi-annual ISS assessment. #### Information on environmental matters Strategy Santander's climate strategy is based on three fundamental pillars: 1) Supporting our customers in their transition goals. We are making headway with our target of raising or 288 facilitating EUR 220 billion in green finance between 2019 and 2030, after having achieved our EUR 120 billion target eighteen months early. By year end this figure reached a total of EUR 174 billion. We offer our customers guidance, advice and specific solutions, as well as a wide range of products to invest in according to their sustainability preferences. Additionally, in March 2025, we reached our target of EUR 100 billion in assets under management (AUM) in socially responsible investment (SRI) nine months early. By year end this figure reached a total of EUR 129.9 billion. 2) Embedding ESG in risk management. We embed climate, environmental and social aspects in risk management from a regulatory and control perspective, including a materiality assessment that feeds into our double materiality assessment and sustainability strategy. 3) Aiming to align our activity with the Paris Agreement Goals. We work aiming to align our portfolio with the Paris Agreement goals to help limit global warming. We either set sector portfolio alignment targets or portfolios under monitoring. We closed 2025 with six targets in five sectors, additional portfolios under monitoring and an alignment approach for our asset management activity. The management of these targets and portfolios under monitoring, in line with the rest of the IROs, is carried out in accordance with local law and regulation in the markets where we operate. Their update and evolution reflect the present and expected performance of the economies and customers we serve. In our own operations we continue to reduce our impact on the environment by implementing efficiency measures, achieving in 2025 our target of 100% renewable electricity in our main markets. Our 2025 highlights are: – Grupo Santander has been a leader in renewable energy financing for more than 10 years. In 2025, we were among the top banks in number of transactions and value of business globally, with 100 transactions closed and a market share of 5.6% according to Infralogic. In Retail & Commercial Banking in Spain, sustainable finance value and services offering includes green and social loans, sustainability-linked loans, public programmes such as ICO Green Recovery and Resilience Mechanism (preferential financing for renewables, energy efficiency, electric transport, circular economy or social housing) or agreements with MDBs (EIB, EIF). We have also expanded our non-financial ESG services: carbon footprint offsetting tools, sustainability reporting guide, advisory for decarbonize real estate assets, new partnerships to support customers monetizing energy saving certificates (CAEs), and new ESG advisory service for SMEs. For individuals, we offer UPLs for sustainable purposes (vehicles, retrofitting works, among others) at a discount rate and an energy efficiency simulator. – Santander in Spain embedded sustainability culture across its commercial networks through dedicated training and sustainability ambassadors. – Santander Consumer Finance (SCF) continued increasing electric vehicle lending, with a market share in Europe of 10% (above the total Auto market share off 8%). – In 2025,  97% of the cards we purchased at Group level were manufactured with sustainable materials (recycled PVC/PLA) and we continued to make progress in offering solutions to our customers to calculate their carbon footprint based on the payments they make with their cards, as well as initiatives to offset it. Santander España offers its customers the option to deposit expired or damaged cards at an ATM, triggering a recycling process through which the cards are transformed into urban street furniture benches. Since its launch in 2023, Santander has donated 167 benches made from recycled cards to various public institutions in cities such as Valencia, Malaga, Seville, Santander and Astorga. In 2025, Santander España delivered these benches to the municipalities of Paiporta, Catarroja and Aldaia, demonstrating its commitment to the recovery of areas affected by flooding caused by the DANA weather event. Climate risk management Managing climate and environmental risk factors is fundamental to strengthening the resilience of our strategy and business model to climate change. To improve resilience, we embed climate and environmental risk factors in the phases of the risk management cycle where we analyse our own facilities and customer financing. We also include the risks associated with these factors in our policies, procedures, tools, metrics, governance and culture. We embed climate and environmental factors in risk management based on defined climate scenarios and time horizons and though a process that covers identification, planning, assessment, monitoring, mitigation and reporting. Paris Agreement alignment Our 2025 highlights are: – We continue working to align our key portfolios; we also disclosed emissions for our mortgages and commercial real estate portfolios in Portugal, in addition to those of Spain and the UK. – We continued managing our own operations' scope 1 and 2 emissions', with reductions plans and offsetting remaining ones; and we kept our offices and buildings in our core markets free of single-use plastics to meet our target. We continue working towards our ambition of net zero carbon emissions by 2050 by progressively setting 289 specific actions regarding the footprint of our own operations and to support our customers in their climate objectives, prioritising the high-emitting sectors - which also bear high and very high transition risk according to our climate heatmap. We also focus on energy security and affordability. We set targets for the wholesale segment in the power generation, thermal coal, oil & gas, steel and on the automotive sector from two perspectives: auto manufacturing (wholesale segment) and auto lending (consumer loans for the purchase of passenger cars in Europe). We update our strategy and targets to incorporate the latest scientific insights and changes in local regulation. During 2025, Santander updated its climate alignment targets. We wanted to ensure these remain credible and consistent, while reflecting the real pace of transition across the economies in which the Group operates. Five years after establishing our first targets (all the details described on the following pages), this update refined the scope, metrics and scenarios to reflect better our role as a facilitator of the transition, as well as how external factors (especially public policy) determine the pace of the transition. In addition to alignment targets, we monitor other climate-relevant portfolios such as the  commercial real estate (CRE) and mortgages in Spain. Santander España has been monitoring financed emissions in residential mortgages since 2021 and in CRE since 2022. As at December 2024, our residential mortgage portfolio, which amounts to EUR 59.37 billion, had an emissions intensity of 21.03 kgCO₂e/m² and a PCAF score of 4.0. Our CRE portfolio, with a scope of EUR 7.18 bn, had an emissions intensity of 21.58 kgCO₂e/m² and a PCAF Score of 4.1. In Spain, the national energy and renovation plans, together with the revision of energy performance certificates (EPCs), aim to boost private investment in the energy refurbishment of buildings. In this context, Santander Spain supports its residential and commercial customers through preferential financing (including EIB, EIF, InvestEU, EIB and MRR Verde lines), loans for energy refurbishment, support for homeowners’ associations, simulation tools and specialist advice (such as agreements with CBRE and CAE management), while maintaining an active dialogue agenda with national and European authorities to promote reliable data, centralised registries and support mechanisms that ensure a just transition. Regarding our own operations, we publicly report data on our direct and indirect emissions (scopes 1, 2 and 3), as well as other climate-relevant metrics such as energy consumption. In 2025 for the first time, Grupo Santander has achieved 100% renewable electricity. Collaboration and global engagement Initiatives with other companies and governments can help us share best practices and accelerate progress. Santander Group takes part in various organisations, alliances and working groups; we collaborate with international and local stakeholders (sector associations, think tanks, universities, peers and others) to advance global and corporate objectives, in line with SDG 17 (Partnerships for the Goals). We also work with leading organisations to strengthen the role of banks in managing climate change and nature, such as the World Economic Forum, UNEP FI, the Banking Environment Initiative, the Partnership for Carbon Accounting Financials (PCAF), the TNFD Forum, the Energy Efficiency Financing Coalition and Carbon Measures. In Spain, we advocate for public policy that supports climate transition (MITECO, MIVAU, Energy Efficiency Coalition, or other European bodies) and our financial institution’s role as enablers. #### Information on social and employee-related matters We attract and retain the best talent by: I. offering an attractive employee value proposition that offers real opportunities to grow and harness potential; innovative ways of working; projects that inspire; and a shared culture; II. providing optimal conditions that safeguard employee health and well-being, with fair and competitive remuneration and initiatives that afford a better work-life balance; and III. promoting an inclusive and meritocratic culture where everyone feels valued. In Spain we were recognized as best bank to work in Spain by Top Employers Institute, being the 3rd company at national level. Talent and skills development As at 31 December 2025, Banco Santander had 34,142 employees in Spain, of which 46% are women and 54% are men. 99.4% of contracts are permanent, the gender pay gap at the end of 2025 was 26%, and pay equity remains below 1%, achieving our 2025 target two years early. In Spain, the percentage of employees with some type of disability stands at 1.7%. Attracting talent Our talent attraction strategy focuses on positioning ourselves as an employer of choice. In 2025, we welcomed 27,872 new employees to the Group. We launched several automation and artificial intelligence projects as part of our talent attraction and selection. They aim to boost operational efficiency and optimize the candidate experience, while reducing human bias and basing pre-screening primarily on skills and experience. 290 We also launched new editions of three global graduate programmes through which over 330 early-career professionals joined our global businesses: Corporate & Investment Banking, Wealth Management & Insurance, and Retail & Commercial Banking. These initiatives seek to attract and develop talent globally, highlight the Group’s digital transformation, foster entry into the labour market through internship and first- employment programmes for graduates, and strengthen our employee value proposition. Talent management We offer programmes and experiences for our employees’ personal and career development: • Development programmes adapted to different levels and businesses within the organization. • Temporary and permanent domestic and international mobility and functional experiences. • Training based on lifelong learning. Developing talent potential Our review model enables us to delve deep into the skills, expertise and aspirations of some 110,756 employees. It also means we can draw up personal development plans based on each person’s needs. We developed a leadership profile and a common leadership assessment methodology to foster transformational and collaborative leadership that aligns with our strategy; and to gain deep, objective and comparable knowledge of our leaders. This also enables us to support their development and make key decisions for the Group. Mobility matters Our global international mobility policy, which the human resources committee approved (by decision of the Group board), is an essential employee development tool, with the objective of contributing to the development of talent in the Group; strengthen succession plans; attract external talent; encourage a global mentality; facilitate international movement to satisfy business needs; and share — in a transparent manner — mobility standards with our workforce. Learning and development At Santander, developing our people’s capabilities is key to executing our strategy and accelerating the transformation of Grupo Santander. Our global learning and development policy establishes  the framework governing all our actions in this area. Our goal is to ensure that all employees are future-ready by providing access to high-quality, relevant and personalised learning experiences, while fostering a culture of accountability and continuous learning. During 2025, our digital learning ecosystem, Dojo, continued to grow at a global level. That year 176,010 employees accessed our global learning systems, with content aligned to their profiles, roles and development needs. Powered by artificial intelligence, Dojo enables each employee to progress at their own pace in developing critical skills, promoting individual growth, and supporting the Group’s strategic priorities. Global learning community for leaders The aim of Elevate is to equip our senior directors with the means to lead their teams and achieve their strategic objectives. Its fully digital format enables directors to sign up to development programmes that are organized into Learning Paths (People, Tech, Strategy and Change) that address the critical skills needed to lead the Group’s transformation. Future-ready talent In 2025, 170,360 employees received training in technology, banking, human and other key skills, which are essential for a sustainable, diverse and high- performing organization. In line with our global learning strategy, we aim to maintain a balance between scalability and adaptation to the specific needs of each profile and market. We embed common frameworks with adaptable solutions, foster a culture of continuous learning, and promote the translation of acquired knowledge into real impact. Mandatory training and promotion of sustainability and responsible banking Mandatory training continues to prove a key lever for strengthening our corporate culture and ensuring regulatory compliance in every market. In 2025, our employees completed training in 13 topics that the global compliance committee approved, including sustainability, code of conduct, cybersecurity, financial crime prevention, data protection, and inclusion. Each subsidiary supplemented this training with content tailored to local legislation and business needs. In Spain, we count with certificates in Sustainability (intermediate or advanced level), specific training in sustainable finance, ESG investment trends, or sector-focused ESG risk analysis. As well, there is a specific site available in the employee portal with further sustainability-related training. In addition, training is provided on serving vulnerable groups and on digital accessibility. We also continue to make progress in sustainability- related training. Our Retail & Commercial Banking teams took part in sustainable finance learning pathways that country-specific modules complemented. Moreover, employees completed training on the practical integration of ESG standards in their day to day. The Board of Directors received specific training on recent regulatory developments in sustainability, including the implementation of the Corporate Sustainability 3 Adherence to global policies is monitored in 18 of the countries with the largest number of employees, which  account for 98.5% of  Santander’s Group workforce. 4 In total 9,834 unique employees (4.8% of Santander's total workforce) exercised their right to parental or family care leave in 2025. By gender, this accounted for 5.92% of our women employees and 3.62%  of our male employees. 291 Reporting Directive (CSRD) and the European Banking Authority (EBA) guidelines on the management of ESG risks. We will continue to invest in developing our employees’ skills, curiosity and growth so they can lead Santander’s transformation and contribute to a more responsible, sustainable and future-ready organization. Working conditions Employee health and well-being Our support for  employees’ health is embedded in our culture and corporate strategy, under which our people and senior managers work together to protect and promote each other’s health, safety and well-being. Based on our strategy, we: • implemented safety and prevention systems; • launched proactive initiatives to boost the overall well-being of employees; • fostered a safe and supportive working environment when it comes to health; and • offered flexible work alternatives to enhance work-life balance. Our General health, safety and well-being policy aims to promote a healthy lifestyle and create long-term value for employees and society. It applies to all our subsidiaries and follows local laws in the markets where we operate to the letter. a) Occupational health The sector-level collective agreements that we sign up to consider employee health and occupational risk prevention. We offer regular medical check-ups and tests after extended absences in every market where we operate. We also work with local public health authorities, employees’ legal representatives and occupational risk insurers. Employees in our main countries are covered under occupational health and safety systems and policies in compliance with local risk prevention standards and best practices. 3 We revised our occupational risk prevention plans with employees' councils through: • regular assessments of risk factors and preventative measures to handle or mitigate them; • prevention through design in new workspaces and tools; • procedures regarding safe and quality working conditions and certifications; • emergency and evacuation plans to protect employees, customers, suppliers and visitors to our facilities, including emergency response; first aid training; • measures to detect and minimize risk due to postural hygiene; • accident investigation to avoid reoccurrence; and active participation of employee accident prevention delegates in health and safety committees b) Well-being We aim to raise awareness about health and well-being through our global BeHealthy programme, which celebrated its ninth year in 2025. In 2025, we updated this programme to align it with best practices in health and well-being; and with the concept of circular health. The programme is now structured around four pillars: physical, mental, social and financial well-being. Over 50,000 employees took part in local BeHealthy initiatives across the Group during the year. In 2025, Santander Spain assumed the Presidency of the Fundamentales Alliance, promoting mental health and psychological safety in the workplace through cross- company collaboration and the strengthening of inclusive and responsible leadership c) Work-life balance Santander promotes employee work-life balance. Employees across all companies are entitled to parental, adoption and newborn care leave, and leave to care for family members is also widely available. In 2025, 8,208 employees took paternity, maternity or adoption leave and 1,778 took other family care-related leave. 4 In recent years, in line with digital transformation and societal change, Santander has maintained policies and arrangements that support flexi-work for its employees. Currently, a high percentage of corporate centre employees can now adapt their working hours and location to fit with their personal circumstances. This includes working remotely or adjusting their entry and exit times. These measures are continuously reviewed at team level, taking into account customer needs, productivity, and employee engagement and experience. d) Social protection At Santander we offer our employees protection against a loss of income due to sickness, accidents at work, acquired disability and paternal leave. 5 These rules are monitored in 18 countries, which account for 98% of employees in locations where  trade union representation may exist in accordance with local rules (by company, location or individual membership). In those countries except for the UK, where data on trade union membership cannot be disclosed, 65% of our employees have union representation. 6 Other remuneration that complements our employees’ salary: benefits, pensions, other fixed pay, incentives, and short or long-term variable remuneration. 292 Our employees have public or private protection for loss of income due to sickness or acquired disability according to local regulation. On top of public health services, we offer additional private cover in our core markets, under which employees usually receive full pay during periods of sickness. Because employee care and respect for their rights are important to Santander, 98% of our workforce have a permanent contract. In every market, employees have coverage against loss of income due to unemployment, in compliance with applicable local laws and regulations. Our employees have appropriate pay protection in the event of an occupational accident. In Spain and other countries, we supplement the financial benefit they receive up to their entire salary in situations of temporary disability. The Group has a minimum standard in each unit of fully paid parental leave. All employees are entitled to a minimum of 14 and up to 52 weeks of paid maternity or adoption leave for the primary caregiver. The secondary caregiver is generally entitled to a minimum of 4 weeks of fully paid paternity or adoption leave. As a result of these inclusion measures and flexible return-to-work arrangements, 74% of women continue working at Santander 12 months after returning from birth, adoption or pregnancy-related leave. Our employees have retirement coverage through public or private pension schemes in every market where we operate. Santander supplements this with defined contribution pension plans for our employees in our core markets. e) Collective bargaining and social dialogue Santander promotes respect for the rights of employees. including freedom of association and the right to collective bargaining. Our Responsible banking and sustainability policy considers forming or joining unions and other representative bodies a basic right of workers, in accordance with Article 10 of our General Code of Conduct. We also encourage respect for freedom of association, trade unions, collective bargaining and protection for employees’ representatives under the laws of each market where we operate 5. At 2025 year end, 129,875 employees worked at premises or in companies with union representation. We continued to promote and comply with the International Labour Organization’s Fundamental Conventions and have a European business council that meets regularly — Group senior managers and employees’ legal representatives in Italy, Poland, Portugal, Spain, the UK and other European countries attend. At the meeting held in May 2025, participants shared information on the Group’s economic and financial situation, outlook and overall results in the European Union, as well as other current topics related to sustainability, compliance, cybersecurity and artificial intelligence. We also remained in constant dialogue with employees’ legal representatives in bilateral and special committee meetings in our markets where all parties could discuss reporting, queries and negotiations about working conditions and employee benefits. We reached key agreements in our core markets in 2025, including committees on occupational health and safety, monitoring of gender balance plans in alignment with local regulations,, control of pension plans, training, updates to collective bargaining agreements, and also other bilateral meetings with union representatives. Notable outcomes of collective bargaining include the signing of equality plans, such as the equality plan for Santander Global Technology and Operations, and the Group equality plan that applies to 15 companies in Spain.  Moreover, the collective procedures carried out during the year were conducted by consensus with employees’ legal representatives. Remuneration and corporate benefits a) Appropriate remuneration Our remuneration framework combines fixed and variable pay schemes based on the performance of employees and the Group. Our remuneration and performance policies, as well as our General Code of Conduct, forbid differential treatment that is not based on a review of performance and corporate behaviours. It also promotes appropriate pay. Specifically, the remuneration policy lays the foundations for non-discriminatory practices (related to performance and internal consistency), as well as the principles, processes and criteria for granting fixed and variable remuneration to create long-term value through risk management. To set pay, we strictly abide by the practices, regulations and collective agreements in force in each market where we operate. All Santander employees receive a salary equal to or higher than the legally established minimum in each of our markets and we comply with all local legislations and applicable collective agreements. Almost all employees (96%) receive other forms of remuneration 6 that supplement their salary.  This demonstrates our pledge to provide fair, competitive remuneration and the appropriate combination of fixed and variable pay. ![]() 7 Climate targets account for 2% of executive directors’ total remuneration, while sustainability targets account for 7%. 8 Measured with the EPG - equal pay gap ratio, which compares the average remuneration between men and women who perform similar tasks. 2025 result for the entire Group. 9 Employees who did not take part in MyContribution were new hires, employees of joint ventures, and employees in some customer service, debt recovery and contact centre roles who are subject to similar performance management schemes but with shorter and more continuous cycles due to the nature of their work. Among employees at year-end, 78,076 women (76% of the total number of women in our workforce at year-end) and 77,165 men (81% of the total number of men). Due to statistical significance, we don't inform other gender percentages. In 2024, the employees with performance review was 177,081. 10 Including Group Sr.Executive VP, Executive VP, VP, Director, Manager, Expert and Branch Manager. Joint ventures are not included in this ratio due to their temporary nature and joint management (they represent only 1.7% of our workforce). 11 At year-end 2024, the Group employed 4,828 people with disabilities, representing 2.3% of the total workforce. As in previous years, we follow local regulations for the calculation and recognition of employees with disabilities. In most countries, disabilities are recorded at the employee's request with the support of a certificate issued by social services (e.g. degree and date of disability). 293 All our businesses and subsidiaries have short-term variable remuneration schemes to reflect what we have accomplished and how, according to Group-wide quantitative and qualitative goals as well as individual and team goals, behaviour, leadership, sustainability, commitment, growth and risk management. These schemes promote meritocracy, recognize individual and team contributions, and promote employee growth and well-being. Our executive directors’ variable pay, which aligns with our sustainability goals, includes achieving our sustainability and climate targets as part of its weighting 7. In 2025, we paid EUR 13.6 billion in employee wages and benefits. Reflecting EU regulation on remuneration and to manage risk correctly, we identified 1.336 employees who are subject to a deferred variable pay scheme because their decisions can have a material impact on Santander's results. The majority of them are subject to a deferral policy of a significant portion of their variable pay (ranging from 40% to 60% depending on their level of responsibility) for four to five years, which is paid out at least 50% in shares and the rest in cash, and is subject to possible reduction (malus) or recovery (clawback). b) Equal pay Our remuneration practices promote non-discriminatory salary management in terms of gender and equivalent remuneration, especially in cases where employees perform the same or similar work (equally remunerated for equal work or work of equal value). The gender pay gap between women and men who perform similar functions remains below 1%, in line with market remuneration practices and consistent with the trend observed in recent years 8. In certain units we continue to review the pay equity  regularly and make adjustments where necessary. We also analysed the overall gender pay gap (GPG), which compares median remuneration for all men and women, and which stood at 26% in 2025 (up 4.5 pp in the past three years). To measure the suitability and acceptance of our policies, we consult employees across the Group, whose perceptions of recognition and meritocracy are consistent with recent levels of employee acceptance and the competitiveness of our remuneration plans. c) MyContribution MyContribution is our global performance management model. In the last financial year, 155,249  (78%) 9 of the employees had their performance reviewed under this model in 2025. Inclusive culture An inclusive culture is an essential pillar of our strategy and corporate culture, as well as a cross-cutting principle in the Group’s management. Through this approach, we promote merit, equal opportunity and inclusion, driving the best diverse talent and ensuring compliance with local regulations, in line with international standards of conduct and responsible business practices. Gender Women account for 52% of our total workforce at Group level (46% in Spain), a figure that has remained stable. In 2025, 51% of new hires at Group level were women. 40% of Banco Santander’s board of directors are women, in line with our objective to maintain a balanced representation between 40% and 60%, which will also become a legal requirement in some jurisdictions from 2026. With this approach, we expect to progress gradually and sustainably towards gender balance, moving closer to c.40% of our senior leaders being women by 2030 10. In 2025 38.5% of our senior leaders were women and 61.5% were men. Persons with disabilities We strive for the successful inclusion of our 4,854 employees with disabilities in the Group, which represents in Spain a total of 1.7% 11. In at least eight of our markets where we operate, and with over 1,000 employees, legislation requires the inclusion of people with disabilities. We comply with these regulations and reinforce them through active inclusion, accessibility and awareness policies. Diversity in other groups ![]() 12 LGBTIQ+: Lesbian, gay, bisexual, transgender, intersex, and other identities. In 12 of the countries in which we operate, employees have the right to report their gender identity,  subject to applicable confidentiality rules and appropriate handling of information. 13  Consider race and ethnicity, colour, sex, sexual orientation, gender identity, disability, age, religion, political opinion, national or social origin, among others. 14 The Universal Declaration of Human Rights, the International Labour Organisation Declaration on Fundamental Principles and Rights at Work, the United Nations Guiding Principles on Business and Human Rights, the OECD (Organization for Economic Cooperation and Development) Due Diligence Guidance for Responsible Business Conduct, and others. 294 We monitor the representation of ethnic groups in four of our core markets, where this topic is material and regulated (United Kingdom, United States, Brazil and Chile). Employees who identify themselves as part of these groups account for over 32.2% of the total workforce, which is consistent with the ethnic and racial make-up of those markets. Among employees who have voluntarily chosen to share information related to their identity or sexual orientation, 2.2% identify as part of the LGTBIQ+ community. 12 Building an increasingly inclusive and engaged environment We promote an inclusive working environment that is free from harassment and discrimination 13 and where every individual is valued and respected. In 2025, 60,126 employees completed trainings on harassment prevention and 87,004 in unconscious bias, which we updated in line with the Global protocol against discrimination and the General Code of Conduct, which provide a common framework for respect, fairness and ethical behaviour. When we ask our employees whether they feel they can be themselves at Santander, the results are consistently high across different groups, confirming an inclusive environment. #### Information on upholding human rights Santander seeks to respect and protect the human rights of stakeholders in the operations and countries where it operates, and these are reflected in management and governance practices. • The responsible banking and sustainability policy approved by the board of directors incorporates defence of human rights. • looking after our employees’ health and promoting decent employment, the preservation of freedom of association and collective bargaining and the prohibition of slavery and child labour. • protecting our customers’ human rights through responsible business practices and the protection of their data. • assessing the human rights impact on transactions with customers through environmental and social (E&S) analysis. • embedding environmental and social aspects, including human rights, in our supply chain management. • Canal Abierto is a key tool to identify, manage and resolve potential human rights-related incidents or violations to protect our customers, employees, suppliers and the communities we serve. The results of the human rights due diligence exercise informed the 2024 double materiality assessment. This exercise was carried out in line with international standards 14, including measures related to labour rights, customer protection and responsible business conduct in relevant activities. For more details on our human rights due diligence, visit the website santander.com/en/our- approach/policies. #### Information on anti-corruption Grupo Santander is firmly committed to the fight against financial crime and compliance with financial crime prevention regulation in every market where we operate. Our Group board-approved and unit-ratified  Corporate financial crime compliance (FCC) framework sets out the key principles for preventing financial crime, which underpin these programmes: the anti-money laundering and terrorism financing prevention programme (CFT); the sanctions programme; and, since 2023, the anti- bribery and anti-corruption programme (ABC). This framework is available to all employees and interested third parties. This framework is available to all employees and interested third parties. Moreover, we use information channels to raise awareness of the importance of financial crime compliance. We reach out to all our stakeholders through annual training programmes, communications channels (corporate and unit Intranet sites), awareness campaigns, internal newsletters and best practices so that they can learn about and understand their responsibilities across the Group’s entire operations. We draw up the policies that build on this framework (including customer due diligence — CDD — procedures) according to domestic and international financial crime regulation to manage and mitigate the impacts and risks related to FCC and protect the Group’s integrity in all our businesses and operations. We constantly review and update our policies to remain consistent with regulatory amendments and new and ever-changing external threats. Moreover, we have a common oversight methodology that enables us to verify that all our operations comply with this framework under the most demanding, standardized criteria that the centralized and technical FCC function in our markets endorse. This function also 295 plays a crucial role in promoting FCC culture and awareness to all Grupo Santander employees. Canal Abierto Canal Abierto is an anonymous and confidential Grupo Santander channel to report alleged unethical conduct. It protects whistleblowers by expressly prohibiting reprisals or any negative consequence against them. Every unit in the Group administers its own ethical channel according to the common standards set out in the Canal Abierto policy. In 2025, we received 56 reports in Spain, 11 of which were from third parties (all of whom from customers). As in 2024, the Group has not record of any judicial proceedings initiated by employees or their representatives in relation to incidents of discrimination or breaches of fundamental rights, nor of any employee- related cases referring to serious human rights incidents that would be considered material to the Group. All reports submitted on Canal Abierto are handled appropriately, whether they are found to be substantiated or not. #### Community support Support for education, employability and entrepreneurship Santander has supported education, employability and entrepreneurship for nearly 30 years. During this period, we have invested over EUR 2.5 billion in partnership with more than 1,000  universities and entities from 13 countries, and helped over  8.3 million people and organizations. In 2025 alone, we allocated EUR 102.1 million to promote education, employability and entrepreneurship, and helped 4.6 million people and organizations. This enables us to make headway with our target of contributing EUR 400 million to community support initiatives in these three pillars between 2023 and 2026. So far, we have contributed EUR 311 million between 2023 and 2025. We sign agreements with prestigious international higher education institutions to strengthen the university ecosystem. We provide scholarships and economic grants to adults so they can access and complete higher education. We also encourage lifelong learning through the acquisition and continuous updating of skills that provide better professional opportunities. We offer training, resources and access to benefits for SMEs, startups, scaleups and entrepreneurial projects to help them grow and strengthen their businesses. Other community support actions We bolster our support for education, employability and entrepreneurship with financial education and helping vulnerable people. On top of direct community action, we cooperate with, and channel our support through, local non- governmental organization (NGOs), social charities, and corporate volunteering. In some cases, cooperation is through foundations that the bank runs in several markets, including Argentina, Mexico, Poland, Portugal, Spain, and the UK. We target our support to different groups depending on their needs. Our support for vulnerable people focuses on sensitive groups (due to gender, disability, age, lack of digital skills, financial difficulty, and other reasons). We usually target cultural activities at the general public, though we also include vulnerable groups to facilitate their access to events and programmes. In Spain, we focus on education, employability and entrepreneurship through Santander Universities (partnerships with universities, training resources, grants and scholarships, SOA, Santander X). In 2025, Santander Spain delivered +1.8k financial education sessions (+10% YoY, >45k participants) through Finanzas para Mortales, consolidating our long-lasting commitment with financial education. We continue supporting our communities through social investment, providing technical support and networking to NGOs (“Red Solidaria”) and corporate volunteering (4k participations in different programmes including probono activities, international volunteering with Fundación Santander -BEST Africa-, Santander Natura (to preserve environment), solidarity teambuildings and Finanzas para Mortales. In 2025, we keep contributing to the recovery of communities affected by DANA storms in Valencia. SRI funds include our solidarity investment funds that donate part of their management fee to NGOs projects in the communities in which we operate. Meanwhile, Santander Compromiso Solidario fund won, for the third year in a row, the Expansión-Allfunds award as 'Best solidarity fund'. In 2025, Banco Santander invested EUR 61.7 million  in these initiatives, of which EUR 5.7 million accounted for social programmes in Spain, helping over 216 thousand people. Fundación Banco Santander, which is based in Spain, works to build a fair, inclusive and sustainable society by financing and running several cultural, educational, social and environmental projects. #### Subcontracting and suppliers Our outsourcing and third-party management model and outsourcing strategy policy (which apply in all our markets) provide a methodology for our suppliers to comply with the Group’s minimum standards and with regulation to avoid risks that stem from substandard operational resilience, solvency, reputational control and regulatory compliance. 296 Moreover, to promote responsible practices in our supply chain, we have a supplier ESG certification methodology that aims to identify the suppliers that pose the greatest risk in terms of sustainability. This methodology also helps us determine which controls to adopt according to the risk identified. As at 2025 year-end, we had assessed 876 suppliers identified with ESG risk. #### Consumers At 2025 year end, the Group had 15 million customers in Spain and 180 million globally. Our customer conduct risk model promotes transparency, fairness, and responsibility in all customer engagement, including product design, pricing, complaint handling, and financial education, while preventing over-indebtedness and protecting vulnerable customers. This model outlines the governance, key processes and instruments that enable us to mitigate and manage customer conduct risk at every stage of our relationship with them. Our conduct risk identification and assessment seeks to proactively identify behaviours or practices that may lead to regulatory breaches, customer detriment, or reputational harm. Ensuring fair customer outcomes takes a coordinated approach that involves the first and second lines of defence to ensure a comprehensive risk assessment. Through the continuous monitoring of risks, indicators and mitigation tools, the Group ensures early detection and effective response to situations that may compromise customer protection. The Group has strengthened complaints handling through further monitoring of the customer voice by analysing complaints and conduct events through key metrics, enabling early identification of risks and trends and supporting timely mitigation actions. The Approval of products and services policy regulates the product approval process at local and Group level by defining roles and responsibilities and setting criteria for product assessment, approval and monitoring, which builds on the conduct risk with customers management model. Santander has a well-established, robust and consistent product governance, that the Group Compliance team owns and manages. It is an end-to-end cycle that regulates the approval and monitoring of products and services, covering their design, sale, and post-sale stages and ensuring approval of proposals according to regulatory requirements, ethical principles and market conduct, both at local and Group level. Product governance forums are responsible for implementing this policy when approving products and services, as well as defining approval requirements and coordinating validation, which includes monitoring and reporting to senior management. We only approve products and services once we have assessed all risks have been assessed, and forum members are unanimously in favour. Training is key to boosting knowledge to foster consumer protection. The Compliance function, with the support of People & Culture, draws up mandatory refresher training for all employees on managing and mitigating customer conduct risk. All units ensure strict compliance with local requirements; supported by robust training. #### Quality and conduct metrics in sales teams’ remuneration The Group establishes requirements to ensure we link variable pay to service quality and conduct metrics. This approach promotes greater awareness and proactive management of customer relationships, encourages high levels of transparency, and supports the identification of appropriate target audiences. The Group has mechanisms to monitor products and services throughout their life cycle. These enable us to detect and manage (as early as possible) potential deterioration, failures in marketing, and non-compliance with the terms and conditions under which they were approved. We analyse and monitor: • Customer voice: Queries, complaints and surveys are a key source of information to identify deficiencies in marketing and customer engagement, and to draw up improvement plans; and • Sales metrics and controls: Monitoring the percentage of product or service cancellations shortly after sign-up. The Customer service and dissatisfaction management policy outlines the principle of making multiple channels available to avoid the potential impact of not having suitable means for customers to convey their issues or dissatisfaction and to promote the fact that we have channels that adapt to our customers’ needs and preferences. Additionally, customers can escalate complaints through external channels when they are in place, such as the Financial Ombudsman, regulatory bodies, and consumer agencies, if they are not satisfied with how we have handled the complaint. Units continue investing in digital channels to speed up case resolution and help customers self-manage certain queries. Root-cause analysis and mitigation plans are an essential component of complaints handling that is continuously being strengthened. In 2025, the total number of formal complaints received was 772,780 from all Group customers. ![]() 15 Spain shows a decrease following the 2024 Supreme Court ruling on mortgage arrangement fees. 16 For more details, visit our website santander.com/informe-inclusion-financiera. 297 Regarding complaints management, we take a proactive approach to addressing customer issues and complaints, analysing root causes and applying lessons learned. In 2025, Banco Santander received a total of 82,650 complaints in Spain, a (47)% decrease compared with 2024 15. Financial health and inclusion Financial health and inclusion are a priority for Santander in contributing to social progress and promoting prosperity and entrepreneurship. We use the World Bank's Global Findex Database to calculate the number of unbanked, underbanked and financially distressed people due to access and financing issues in the markets where we operate as a retail bank. In particular, we: • consider several components of financial exclusion and aggregate indicators to cover all our target audiences; • define an inclusive financial system as one that maximizes the use of financial products and services, access and financing; • measure involuntary financial exclusion through barriers that people who do not participate in the formal financial system perceive; and • apply a correction factor that matches our business penetration rate in the markets where we operate. Thanks to our financial inclusion efforts, we achieved our objective of reaching five million people with at least one financial inclusion measure during the period 2023-2025. This ambition aligns with our market penetration levels and the gaps identified in our exclusion analysis. Our processes pinpoint the needs of customers facing financial difficulty so we can develop products and services and train our teams. 16 In 2025, Santander Spain reached a landmark by becoming the 1st IBEX-listed company to certify a 360º accessibility commitment by AENOR, covering physical and digital channels and ensuring that all our products, services and relationship channels are accessible for all our customers, regardless their diverse physical, sensory, cognitive, or age-related abilities . We have also reinforced fraud prevention and financial protection for older customers, including dedicated workshops on economic abuse and patrimonial fraud. These processes are consistent with our customer conduct model, vulnerable customer policy, and responsible banking and sustainability policy. In 2025, we updated our Corporate Financial Inclusion guide to reflect best practice. We also changed how we monitor and measure progress, differentiating between financial inclusion and financial health. The updated guide continues to enable the homogeneous measurement of access and financing initiatives across markets and sets out these common definitions: • Unbanked: People who do not have a bank account or access to any banking services. • Underbanked: People who, despite having a bank account, have difficulty accessing basic services (e.g. making deposits and withdrawals) or who source financing informally. • People in financial distress: People who earn less than their country’s legal minimum wage or who are unable to cover basic living expenses. The guide also provides a consistent metrics system for monitoring and managing access and financing initiatives. Though we have achieved our ambition, we will continue working to increase access, improve the use of financial services, and strengthen our support for vulnerable individuals and communities. In 2025, we financially included nearly 1 million people through access initiatives; and 1 million people through finance initiatives. In Spain, we focus on guaranteeing access to basic financial services by waiving fees for vulnerable customers or thanks to Correos Cash in remote areas (non-digital solution that covers 100% national territory) while financing underbanked SMEs and entrepreneurs or low-income households. In 2025, we continued to strengthen a common financial health approach in all the Group’s markets. We define financial health as individuals’ ability to manage their finances in a way that enables them to meet short-term needs while planning for and achieving long-term goals, generating stability, and reducing the risk of financial hardship. Throughout the year, we made headway with identifying and building on initiatives that help customers’ develop financial skills. We combined global tools — such as goal-setting solutions and planning resources within our banking app in certain countries — with local action, including tailored financial education content and practical guidance that align with market-specific needs. As part of this, we came up with a common financial health definition and measurement guide that will enable homogeneous and comparable progress assessment across markets. Our framework directly complements our financial education and inclusion efforts and ensures that individuals not only gain access 298 to the financial system but also acquire the knowledge and tools needed to use it responsibly and effectively. Tax information The principles that guide the Group’s tax practices are consistent with its purpose and aligned with business strategy. The board of directors approves our tax strategy and revises it regularly. The Group’s tax risk management and control, which draws on our internal control model, sets out the actions to follow our tax strategy and the principles that underpin it. We participate in cooperative compliance initiatives that tax authorities run. Since 2010, we've adhered to the Spanish Code of Good Tax Practices and the UK Code of Practice on Taxation for Banks and, more recently, to the Portuguese Code of Good Tax Practices in 2022. Since 2015, we have voluntarily submitted an annual tax transparency report to Spain's tax authority. The principles of Grupo Santander’s tax strategy must enable us to make appropriate contributions according to the value creation in each of the markets where we operate, as well as to comply with local laws. In 2025, Banco Santander, S.A. and its Group in Spain collected and paid EUR 4,183 million in taxes, of which EUR 2,028 million were own taxes and EUR 2,155 million third party taxes. 299 6. Data and Artificial #### Intelligence, Technology and the Fintech Ecosystem Technological innovation is one of the fundamental pillars underpinning the Group’s strategy. In an environment of constant disruption, technology, data and artificial intelligence (AI) are essential to anticipate customer needs, drive operational efficiency and generate new opportunities for sustainable growth. We continue to evolve from a traditional banking model towards a digital ecosystem, with the aim of becoming the best financial services platform. The adoption of AI, the rollout of a robust and efficient technological infrastructure, the continuous strengthening of cybersecurity and collaboration within the fintech ecosystem act as key levers to enhance customer experience, promote operational excellence and simplify the ecosystem, contributing to the creation of sustainable long-term value. This approach reinforces our commitment to innovation, technical excellence and global collaboration, aligned with the highest standards of security and compliance, to offer secure and personalized experiences for both customers and Group professionals. During 2025, Santander took a decisive step with the creation of the Global Data and Artificial Intelligence (Data & AI) function, aimed at extracting maximum value from data and accelerating transformation by using AI as a lever. It is a cross-cutting function across all global businesses and countries, enabling us to scale capabilities, strengthen collaboration and accelerate the impact of innovation. EUR 1,713 million was allocated during the year to digital transformation activities demonstrating the Group's firm and ongoing commitment to investment in technology and innovation. 1. #### Data and Artificial Intelligence The global Data and Artificial Intelligence function is structured around three fundamental pillars: • Transform customer experience and operations, by integrating artificial intelligence  and advanced automation capabilities into key processes. • Improve decision-making with reliable data, based on common standards of quality, traceability, and governance. • Accelerate the impact on business, driving the development of analytical models and scalable solutions that generate tangible and sustainable results. To make this transformation possible, we continued to implement data governance from its point of origin and throughout its entire lifecycle, while progressing towards a unified data architecture. This eliminates silos, facilitates the efficient and global reutilization of data and enables the secure scaling of AI capabilities across the organization. The rollout of the Data & AI function is structured under a business-led model: each initiative stems from a specific business need and is supported by a global network of Data & AI leaders across businesses and countries. We have a unique portfolio with more than 1,000 initiatives, prioritizing projects with the greatest impacts on efficiency, automation and customer experience thereby focusing development on a limited set of global, reusable and scalable capabilities. This is carried out by multidisciplinary teams working under agile methodology, combining business, data, advanced analytics, technology, risk and compliance capabilities. Our approach ensures that each solution is designed under criteria covering security, responsibility and value-creation from the outset, while promoting technical consistency and reusability across countries. The Group internally develops strategic capabilities but also  works with external partners when they provide speed or specialization, always under strict governance and data protection standards, within the framework of a secure and ethical global ecosystem. Specifically, we develop solutions that incorporate machine learning and advanced analytics techniques, which contribute directly to revenue growth and improvements in operational efficiency. Their application spans areas such as process simplification, enhanced customer acquisition and retention, fraud prevention, and the strengthening of the cards business throughout its entire life  cycle. The governance of Data and Artificial Intelligence within the Group is based on a robust global model that ensures the security, proper lifecycle management and ethical use of these technologies. This model is included in the corporate data and AI framework, approved by the Board of Directors, and is complemented by the AI management and governance policy, which regulates the full lifecycle of the Group´s AI use cases. The governance framework ranges from data quality to model control and supervision is based on a structure of three lines of defence that ensures independent oversight proportionate to the level of risk. It also incorporates the principles of responsible AI, which guide the design and delivery of all solutions: transparency, fairness and reduction of biases, accountability, privacy and security, as well as contributing to value creation which guide the design and operation of solutions. As part of the Group’s firm 300 commitment to the responsible use of AI, we implemented mandatory training. We apply these principles across common processes for identifying, classifying, inventorying and controlling AI use cases, which makes it possible to assess their potential impact and establish appropriate controls at each stage. This approach ensures a centralized view, comprehensive follow-up and regulatory compliance across all Group units and countries. Advances in the use of data and artificial intelligence require the development of new capabilities and a profound cultural shift. To this end, the Group promotes a global talent strategy that combines the strengthening of internal capabilities, the attraction of specialized profiles and the consolidation of a culture based on controlled experimentation, rigorous analysis and the responsible use of technology. In 2025, we completed the formation of the Data & AI team, strengthening the second line of defence and the function’s operating model with end-to-end execution capabilities. In addition, we improved upskilling and reskilling programmes on AI, data science and data governance and we integrated specialized profiles in data engineering, advanced analytics and AI operations, driving the execution of key initiatives. Furthermore, a structured AI training programme was launched to foster adoption and maximize the value derived from employees’ use of these tools. In 2025, we significantly accelerated the adoption of AI among our employees, driving improvements in productivity, operational efficiency and service quality. Implementation was carried out safely and progressively, prioritizing use cases with tangible impacts and guaranteeing data protection and traceability of the models at all times. The most important applications were the following: • AI Assistants: approximately 30,000 employees are using advanced AI tools and over 7,000 active agents have improved document writing, information analysis and automation of lower value-added tasks. • Intelligent automation: the Group has built more than 100 agents for processes automation and trained more than 800 engineers in automation tools, resulting in faster, more reliable and scalable operations. • Software lifecycle: more than 30 use cases (for example, functional testing, documentation and code maintenance) have been delivered, used by over 6,000 developers through coding agents to reduce delivery times and improve software quality. • Customer service: the Group is moving towards a new generation of experiences based on conversational AI. The first AI-based voice solutions are currently in the testing phase and represent a significant leap from traditional systems, designed to enable  faster and more efficient interactions. Looking ahead to the next stages, the Group will accelerate its comprehensive AI strategy to transform the financial services of the future in a secure and responsible manner. The objective is to scale capabilities, differentiate ourselves and capture value by combining in-house development, strategic partnerships and investment. Research and experimentation capabilities will be strengthened by intensifying the exploration of emerging technologies, the early validation of use cases and the monitoring of global trends. In addition, partnerships with leading technology companies will continue to establish co-design and deploy high-impact solutions, combining their scale with the Group’s business expertise, data assets and regulatory experience. The Group will expand collaboration with specialized startups and will continue with its investment strategy, with more than 20 deals completed to date, to accelerate capabilities, incorporate differentiated innovation and reduce time to market. In parallel, we will move forward with the creation of our own AI Studio to develop, train and adapt models based on specific data and needs, thereby strengthening technological autonomy and personalization. All of this will be underpinned by a global network of academic partnerships to foster cutting-edge research, talent development and the generation of advanced knowledge in AI and data. Through this approach, we will consolidate the responsible adoption of AI on the basis of evidence, impact and sustainable value creation. 2. Technological infrastructure Santander has migrated more than 97% of its technological infrastructure to the cloud, with the aim of boosting standardization, maximizing scalability and strengthening service availability. It has also accelerated the deployment of next-generation infrastructure based on the on-premise private cloud, supported by an architecture with greater capacity, resilience and efficiency. All of this contributes to reducing energy consumption and advancing the Group's sustainability goals achieving an estimated reduction in its carbon footprint of 49.5 tonnes of CO₂. The Group has a network of paired, high-quality data processing centres (CPDs), interconnected through a redundant communications system and distributed in strategic locations to support and ensure the continuity of the Group's activity. These centres combine traditional IT systems with on- premise private cloud capabilities, enabling the integration of technological management across business areas, accelerating digitalization and achieving significant efficiencies through the standardization and simplification of operations. 301 3. Cybersecurity Cybersecurity remains one of the Group’s priorities. During 2025, we faced a dynamic and increasingly sophisticated threat landscape, including more ransomware attacks, intensified hacktivism and supply chain threats, together with the growing use  of social engineering and AI techniques by attackers. To face these challenges, Santander has continued to evolve its defences in line with the cybersecurity strategy, centred on three pillars: • Shift-left. The principles of security by design were strengthened, incorporating risk management and the definition of security architectures from the early stages of each initiative. Among the most important advances were: i) the strengthening of controls related to critical environments and identification of people who interact with our banks' systems; ii) the strengthening of security controls to mitigate risks associated with supply chains; and iii) the consolidation of the Cyber Pro culture, that reinforces employee training, with special attention to groups with the greatest exposure to risk. • Increased cyber defence. Santander continued to harness the potential of AI and automation to strengthen threat prevention, detection and response. We implemented new solutions that improved threat detection and response times. Likewise, we significantly increased the early detection of online scams and fraud by analysing user behaviour in real time, enabling us to distinguish legitimate from fraudulent activities. • Operational resilience. The Group strengthened its capacity to anticipate, resist and recover from potential cyber scenarios, strengthening response preparedness and continuity of essential services. Among the main improvements are the global expansion of the Cyber Emergency Response Team, which is permanently operational and the expansion of resilience and recovery tests in line with the DORA Regulation. The Santander Fusion Centre, which integrates the Cybersecurity and IT Monitoring teams, performs detection, monitoring and response functions to operational failures and cybersecurity events for Group entities. Information systems are reviewed regularly through internal and external audits. The Group identifies IT assets, systems and information (including those managed by third parties) and periodically assesses the associated risks and protection levels. Additionally, it has a permanent testing ecosystem, including (vulnerability analysis, penetration testing, red teaming exercises and cyberattack simulations) which enable potential weaknesses to be identified and proactively mitigated, prioritizing remediation according to criticality and potential impacts on the business. Independent entities review and certify critical cybersecurity processes. Certifications include ISO 27001:2022 and ISO 27017, SSAE 18 and Payment Card Industry Data Security Standard (PCI DSS) 4.0, which are reviewed and updated regularly, incorporating new processes and controls every year. 4. Fintech ecosystem Santander actively participates in the fintech ecosystem across all global businesses and countries in which it operates, and with all the global units. As part of our efforts to foster and channel innovation while improving customer experience and efficiency, we partner with technology companies. Through our Fintech Station programme, we work with startups and scale-ups in pilot programmes and implement or co-create new products and services with them. In 2025, Santander Fintech Station worked on eight proofs of concept (PoC) and also collaborated on the implementation of six production initiatives. The Group also provided banking services to these fintech companies, such as advice on financing rounds, buying and selling processes and IPOs. We are an active investor in the fintech sector, sometimes directly, through our programme focused on investments in startups with high strategic value for the Group or through funds promoted by the Group, such as Mouro Capital, a global venture capital fund that invests in fintechs, and has already launched a second fund. To date, the programme focused on investments in strategically valuable startups has invested directly in more than 20 companies globally, and Mouro has a portfolio of more than 40 investments in technology companies across Europe, North America and South America. These investments, together with commercial collaboration with participating companies, continue to be a key tool for driving innovation within the Group. Santander works with companies in these portfolios, for example with Colektia, an AI solution for automated recovery services in Latin America; Elliptic, in blockchain analytics and regulatory compliance for digital assets; and Drive Revel, to provide a flexible, digital vehicle leasing offering in Spain. In addition, the Group invests in the field of cybersecurity through Forgepoint Capital International, a venture capital manager that is raising its first fund outside the US and which, with the Group’s support, has already made six investments. See more information in the Consolidated Directors’ Report. 302 7. Customer service and customer defence Customer Service Annual Report In accordance with article 17 of order ECO / 734/2004 of March 11 of the Ministry of Economy on the departments and services of Customer Service and the Customer Ombudsman of Financial Institutions, the directors’ report summarizes the Annual Report to be presented by the holder of the Service on the Board of Directors in March 2026. Customer service and customer defence service In compliance with Law 44/2002 on Measures for the Reform of the Financial System of the 734/2004 Order of the Ministry of Economy on Departments and Services of Customer Service and the Customer Ombudsman of Financial Institutions and in accordance with Article 37 Of the Regulations of the Customer Claims and Attention and Defence Service in Grupo Santander, below is a summary of the activity developed by the said Service during 2025, in relation to the management of complaints and claims. This complaints and customer service unit handled complaints from 18 Group companies in Spain during 2025, following the integration of Santander Private Banking Gestión SGIIC into Santander Asset Management on 17 November 2025. Global evolution of complaints and claims received by Banco Santander in 2024 In 2025, 95,298 claims were accepted in the complaint and customer service department. Of these, 181 came through the Customer Ombudsman, 1,464 through the Bank of Spain, 137 through the National Securities Market Commission (CNMV) and 112 through the General Directorate of Insurance and Pension Funds (DGSFP). Analysis of claims by affected products The following is the classification of complaints received in 2025 according to the type of product: | | | | | --- | --- | --- | | | | | | Number of complaints | 2025 | 2024 | | Assets | 40,564 | 120,627 | | Liabilities | 10,085 | 10,968 | | Services | 16,569 | 13,871 | | Insurances | 1,369 | 1,237 | | Funds and Plans | 849 | 702 | | Payment methods | 20,953 | 15,676 | | Securities / Capital Markets / Treasury | 1,048 | 1,031 | | Others | 3,861 | 2,264 | | | 95,298 | 166,376 | Resolution of claims and complaints As of 31 December 2025, 94,600 claims had been resolved, of which 18,237 came from files received in 2024. This figure represents 81% of the claims and complaints received in the year. The average resolution time in 2025 was 76 calendar days. 81% of the complaints and claims resolved have required a processing time of more than 15 calendar days. In 36% of cases, the resolutions have been favourable to customers. Entities The following are the companies adhering to the Regulation of the Customer Service of Complaints, Care and Defence of Grupo Santander and their corresponding number of complaints and claims received. 303 | | | | | --- | --- | --- | | | | | | Entities | Admitted to processing | Non-admitted to processing | | BANCO SANTANDER, S.A. | 75,702 | 19,197 | | SANTANDER CONSUMER FINANCE, S.A. | 12,644 | 3,395 | | OPEN BANK, S.A. | 4,547 | 344 | | SANTANDER SEGUROS Y REASEGUROS CÍA. ASEGURADORA,SA | 1,226 | 655 | | SANTANDER PENSIONES, S.A., E.G.F.P. | 473 | 108 | | GETNET EUROPE, EP, SL | 352 | 42 | | SANTANDER ASSET MANAGEMENT, S.A., S.G.I.I.C. | 196 | 59 | | ALTAMIRA SANTANDER REAL ESTATE, S.A. | 90 | 68 | | SANTANDER FACTORING Y CONFIRMING, S.A., E.F.C. | 40 | 5 | | SANTANDER LEASE, S.A., E.F.C. | 7 | 2 | | EURO AUTOMATIC CASH | 9 | 2 | | TRANSOLVER FINANCE, E.F.C., S.A. | 9 | 1 | | SANTANDER PRIVATE BANKING GESTIÓN, S.A., S.G.I.I.C | 3 | 4 | | PAGONXT EMONEY, EDE, SL | — | — | | SANTANDER REAL ESTATE, S.A. | — | — | | SANTANDER INTERMEDIACIÓN CORREIDURÍA DE SEGUROS, S.A. | — | — | | SANTANDER INVESTMENT, S.A. | — | — | | SANTANDER ALTERNATIVE INVESTMENTS, SGIICV | — | — | | BANCO DE ALBACETE, SA | — | — | | Total | 95,298 | 23,882 | The network of branches and the different channels of relationship solve, in the first instance, the requests, disconformities or incidents that the clients communicate to Banco Santander, trying to avoid that they become complaints to other instances. 8. Risk management, solvency and capital See notes 50 and 1.e) on risk and capital to the Bank Annual Accounts. See more information in the Consolidated Directors’ Report. 9. Other relevant information 9.1 Treasury shares: See note 30 to the Bank Annual Accounts. The acquisition of treasury shares was last authorized at our 2023 AGM, for five years and subject to these provisions: • The treasury shares held cannot exceed 10% of Banco Santander's share capital at any time, which is the legal limit set under Spain’s Corporate Enterprises Act. • The acquisition price may not be lower than the par value of the shares, nor exceed by more than 3% the highest of the last independent purchase or the highest independent offer at that time at the trading venue where the purchase is made. 304 • The purpose of acquiring treasury shares will be discretionary treasury share management, the execution of share buyback programmes, the delivery of these shares under the framework of the employee and director remuneration policy or any other purpose that the board deems pertinent at any given time. On 26 February 2024, the board updated the current treasury shares policy, which dictates that Banco Santander may carry out treasury share transactions for these purposes: • Provide liquidity or the supply of securities in the market for Banco Santander shares, which gives this market depth and minimizes any potential temporary imbalances in supply and demand. • Take advantage, for the benefit of all shareholders, of weakness in the share price due to its medium-term outlook. • Meet Grupo Santander's obligations to deliver shares to our employees and directors. • Serve any other purpose authorized by the board within the legal limits and those set at the general meeting. Among other things, the policy also provides for: • The principles to uphold in treasury share trades, which include protecting financial markets' integrity and prohibiting market manipulation and insider trading. • The operational criteria for carrying out treasury share trades, unless in exceptional circumstances as per the policy or carried out through mechanisms, such as buyback programmes, with regulation of their own. These criteria include rules on: • Responsibility for execution of these trades, which falls on the Investments and Holdings department, which is kept separate from the rest of Banco Santander. • Venues. Trades must generally be carried out in regulated markets and in the multilateral trading facilities stipulated in the policy. • Volume limits. Trades must generally not exceed 15% of the average daily trading volume for Banco Santander shares in the previous 30 sessions on the relevant trading venue. • Price limits. In general, (a) buy orders should not exceed by more than 3% the highest of (i) the price of the last independent transaction prior to the relevant acquisition or (ii) the highest independent bid at that time on the trading venue where the purchase is made; and (b) sell orders should not be lower than the lowest of the price of the last trade in the market by independent parties and the lowest sell order price in the order book. • Time limits, including a black-out period that applies (a) during the 15 calendar days prior to the publication of quarterly financial information and (b) if Banco Santander has decided to delay the disclosure of inside information according to market abuse regulations, until such information is disclosed. In the case of buyback programmes, the specific regulations establish a black-out period of 30 calendar days prior to the publication of annual and semi-annual results, which, however, will not apply when the buyback programme is managed by a third party or when the issuer has a temporary buyback programme in place. • Disclosure to the markets of treasury shares trading. The policy applies to the discretionary trading of treasury shares irrespective of whether they are carried out in regulated markets, in multilateral trading facilities, outside the orders market, either through blocks or through special transactions, or under buyback programmes. Furthermore, buyback programmes shall comply with all the applicable specific regulations, such as those on market abuse and their relevant implementing rules. The policy does not apply to transactions on Banco Santander's shares carried out to hedge market risks or provide brokerage or hedging for customers. The full treasury shares policy is available on Banco Santander's corporate website. Execution of the buyback programmes charged against 2024 results We executed two buyback programmes under the 2024 shareholder remuneration policy: In the first buyback programme, executed from 27 August to 3 December 2024, we acquired 341,781,250 treasury shares (approximately 2.21% of share capital). Under the authorization of the 2024 AGM, on 17 December 2024 the board resolved to reduce Banco Santander’s share capital through the cancellation of the repurchased shares. In the second buyback programme, executed from 6 February to 2 June 2025, we acquired 267,166,950 treasury shares (approximately 1.76% of share capital). Under the terms agreed at the 2025 AGM, on 25 June 2025 the executive committee, by delegation of the board, resolved to reduce Banco Santander’s share capital through the cancellation of the repurchased shares. First 2025 Buyback Programme 305 Under the authorization of the 2023 AGM, and according to the 2025 shareholder remuneration policy, on 29 July 2025 the board resolved to execute a new share buyback programme for a maximum amount of EUR 1,700 million, equivalent to approximately 25% of the Group's net reported profit (excluding non-cash, non-capital ratios impact items) for the first half of 2025 and for which we have already obtained the required regulatory authorization of the European Central Bank (ECB). In the First 2025 Buyback Programme (executed from 31 July to 22 December 2025), we acquired 196,005,870 treasury shares (accounting for approximately 1.32% of Banco Santander’s share capital), at a weighted average price per share of EUR 8.67. On 23 December 2025, the executive committee, by delegation of the board, resolved to reduce the share capital in the amount of EUR 98,002,935 by cancelling the 196,005,870 repurchased shares. Second 2025 Buyback Programme Under the same AGM approval, on 3 February 2026 the board resolved to execute the Second 2025 Buyback Programme, for a maximum amount of EUR 5,030 million. The appropriate regulatory authorization had already been obtained and the execution of the programme began on 4 February 2026. Under the shareholder remuneration policy in relation to the 2025 results, 1,830 million euros correspond to c. 25% of the Group’s underlying profit for the second half of 2025. The remaining amount corresponds to an extraordinary buyback of 3,200 million euros, equivalent to approximately 50% of the CET1 capital generated in January 2026 following completion of the sale of 49% of Santander Bank Polska to Erste Group. The board submitted the resolution on the share capital reduction through the cancellation of the shares repurchased under the Second 2025 Buyback Programme to vote at the 2026 AGM. As at 31 December 2025, Banco Santander and its subsidiaries held 11,077,291 shares, accounting for c. 0.08% of Banco Santander's share capital (compared to 15,529,459 shares, accounting for 0.10% of the share capital as at 31 December 2024). 9.2 Dividends and shareholder remuneration: As required in Banco Santander’s by-laws, each year the shareholder remuneration policy is submitted for approval by the AGM. Distribution charged against 2025 results and excess capital The board applied the current shareholder remuneration policy to the 2025 results. This policy sets a target to distribute approximately 50% of the Group's net reported profit (excluding non-cash, non-capital ratios impact items) split almost evenly between cash dividends and share buybacks. Additionally, on 5 February 2025, Banco Santander signalled its objective to allocate up to EUR 10 billion to share buybacks in relation to the 2025 and 2026 results, as well as expected capital excess. As part of this target, on 5 May 2025 Banco Santander announced its intention to distribute approximately 50% of the capital that will be released upon completion of the sale of its 49% stake in Santander Bank Polska S.A., through a share buyback of approximately EUR 3.2 billion in early 2026 and that, as a result, it could exceed the EUR 10 billion target. Upon announcing the agreements to acquire TSB and Webster on 1 July 2025 and 3 February 2026 respectively, Banco Santander confirmed its goal to distribute at least EUR 10 billion in share buybacks with regard to the 2025 and 2026 results and excess capital. Interim remuneration. On 30 July 2025, the board resolved to execute the First 2025 Buyback Programme worth up to EUR 1,700 million (equivalent to approximately 25% of the Group's net reported profit in H1’25). On 30 September 2025, the board resolved to pay an interim cash dividend against the 2025 results of 11.5 euro cents per share entitled to the dividend (equivalent to approximately 25% of the Group's net reported profit in H1’25), which was paid from 3 November 2025. Final remuneration. Under the 2025 shareholder remuneration policy: On 3 February 2026, the board of directors resolved to implement the Second 2025 Buyback Programme worth up to EUR 5,030 million and for which the required regulatory authorization had been obtained. The programme started on 4 February 2026. Under the shareholder remuneration policy in relation to the 2025 results, 1,830 million euros of the Second Buyback Programme correspond to c. 25% of the Group’s underlying profit for the second half of 2025. The remaining amount corresponds to an extraordinary buyback of 3,200 million euros, equivalent to approximately 50% of the CET1 capital generated in January 2026 following completion of the sale of 49% of Santander Bank Polska to Erste Group. On 24 February 2026, the board of directors resolved to submit to the 2026 AGM the approval of a final cash dividend in the gross amount of 12.5 euro cents per share entitled to dividend. Subject to AGM approval, the dividend will be payable from 5 May 2026. 306 Once these actions are completed, total shareholder remuneration in relation to the 2025 results will be EUR 7,050 million (approximately 50% of the Group's 2025 net reported profit, excluding non-cash, non-capital ratios impact items), split almost evenly between cash dividends (EUR 3,520 million) and share buybacks (EUR 3,530 million). We have estimated these amounts on the assumption that, as a result of the partial execution of the Second 2025 Buyback Programme, the number of outstanding shares entitled to receive the final cash dividend will be 14,568,470,446. Therefore, the final amount may be higher if fewer shares than planned are acquired in the Second 2025 Buyback Programme; otherwise, it will be lower. Shareholder remuneration policy The board of directors intends (1) to apply an ordinary shareholder remuneration policy for 2026 to 2028 results that entails allocating approximately 50% of the Group’s underlying profit\* (excluding non-cash, non- capital ratios impact items), split approximately evenly between cash dividends and share buybacks for 2026 results, and (2) to distribute to shareholders any excess capital at the end of the 2026-2028 period. From 2027 results, the ordinary shareholder remuneration policy is expected to comprise around 35% of the Group's underlying profit (on the same basis) in cash dividends and around 15% in share buybacks. The execution of the ordinary shareholder remuneration policy and the distribution to shareholders of any excess capital at the end of the 2026-2028 period is subject to corporate and regulatory decision and approval. \*  Therefore excluding extraordinary results, such as those arising from the sale of 49% of Santander Bank Polska to Erste Group, the positive capital impact of which we considered for the purposes of the Second 2025 Buyback Programme. 9.3 Stock market information: Banco Santander shares are listed on Spanish stock exchanges (Madrid, Barcelona, Bilbao and Valencia), the New York Stock Exchange as American Depositary Shares (ADS), the London Stock Exchange as Crest Depositary Interests (CDI), the Warsaw Stock Exchange and in the International Quotation System (SIC) of the Mexican Stock Exchange (BMV). As at 31 December 2025, Banco Santander occupies the first position in the eurozone and 14th in the world by market value among financial institutions, with a market capitalization of EUR 147,921 million. 7,573  million Banco Santander shares traded in the year for an effective value of EUR 53,296.1 million and an annualized liquidity ratio of 51%. The Santander share closed 2024 at 10.070 euros. 9.4 Average period of payment to suppliers: The average period of payment to suppliers during 2025 is 10 days, term which is below the maximum established in applicable regulations. 10. Events after the reporting period No significant events occurred from 1 January 2026 to the date on which these financial statements were authorized for issue, other than those described in these annual accounts. 11. Annual corporate governance report and Annual report on directors’ remuneration According to articles 540 and 541 of the Spanish Companies Act, Banco Santander, S.A. has prepared the annual corporate governance report and the annual report on directors’ remuneration for the year ended 31 December 2025 (that are part of the directors’ report of that financial year) with the contents determined by Order ECC/461/2013, of 20 March, and by Circular 3/2021, of 28 September, of the National Securities Market Commission (CNMV), that modifies Circular 5/2013, of 12 June, that defines the annual corporate governance report model for listed companies, and Circular 4/2013, of 12 June, that defines the annual report on directors’ remuneration model for listed companies. The annual corporate governance report includes a section that refers to the compliance of the corporate governance recommendations in Spain. The annual corporate governance report and the annual report on directors’ remuneration are included, as a separate section, in the individual directors’ report in accordance with the provisions of article 538 of the Spanish Companies Act. The aforementioned reports are sent individually, as other relevant information, to the CNMV, and are included in the consolidated directors’ report as a separate section. They are available on the Bank's corporate website (www.santander.com) and on the CNMV website (www.cnmv.es). 307 Pursuant to Article 253, section 1 of the revised Spanish Companies Act (Ley de Sociedades de Capital), the board of directors of Banco Santander, S.A. draws up the individual financial statements (comprising the balance sheet, the income statement, the statement of recognized income and expense, the statement of changes in total equity, the statement of cash flows and the notes to the individual financial statements) and the individual directors’ report for the 2025 fiscal year in eXtensible HyperText Markup Language (XHTML) format, which conforms to the single electronic reporting format required under Directive 2004/109/EC and Delegated Regulation (EU) 2019/815. The directors of Banco Santander, S.A., listed below with an indication of their respective positions, declare that, to the best of their knowledge, the company's individual financial statements for the 2025 financial year were drawn up in accordance with the applicable accounting principles and give a true and fair view of the assets, liabilities, financial position and profit or loss of the company, and that the directors’ report includes a fair review of the development, performance and position of the company, together with a description of the principal risks and uncertainties that it faces. Boadilla del Monte (Madrid), 24 February 2026 | | | | | --- | --- | --- | | | | | | | | | | | | | | | | | | ANA PATRICIA BOTÍN-SANZ DE SAUTUOLA Y O’SHEA | | HÉCTOR BLAS GRISI CHECA | | Chair | | Chief Executive Officer | | | | | | --- | --- | --- | | | | | | | | | | | | | | | | | | GLENN HOGAN HUTCHINS | | JOSÉ ANTONIO ÁLVAREZ ÁLVAREZ | | Vice Chair | | Vice Chair | 308 MEMBERS: | | | | | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | HOMAIRA AKBARI | | JUAN CARLOS BARRABÉS CÓNSUL | | | | | | | | | | | | | | | | | | FRANCISCO JAVIER BOTÍN-SANZ DE SAUTUOLA Y O’SHEA | | SOL DAURELLA COMADRÁN | | | | | | | | | | | | | | | | | | HENRIQUE MANUEL DRUMMOND BORGES CIRNE DE CASTRO | | GERMÁN DE LA FUENTE ESCAMILLA | | | | | | | | | | | | | | | | | | GINA LORENZA DÍEZ BARROSO AZCÁRRAGA | | LUIS ISASI FERNÁNDEZ DE BOBADILLA | | | | | | | | | | | | | | | | | | BELÉN ROMANA GARCÍA | | PAMELA ANN WALKDEN | | | | | | | | | | | | | | | | ANTONIO FRANCESCO WEISS | | |