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Hedging derivatives | 12 Months Ended
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Dec. 31, 2025
Disclosure of detailed information about hedges [abstract] |
Hedging derivatives | 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. 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 |  |
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 |  |
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) |  |
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. 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. 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 |
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 |
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 |
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 |  |
| 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 |  |
| 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 |  |
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 |
| 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 | — |
| 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 |
| 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 | — | — |
| 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 |  | — |  | — |  |
| 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 |  | — |  | — |  |
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. 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 |
| 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) |
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) |  |
| 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) |  |
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) |

X
- Definition The entire disclosure for general hedge accounting. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 7 -IssueDate 2025-01-01 -Section Hedge accounting -URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=7&code=ifrs-tx-2025-en-r&doctype=Standard&dita_xref=IFRS07_g21A-24G_TI -URIDate 2025-03-27 + Details
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Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
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Namespace Prefix: | ifrs-full_
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Balance Type: | na
Period Type: | duration