Annual report 2009 - Santander

1463.2 Main magnitudes and evolutionThe Group’s credit risk profile is characterised by diversifiedgeographic distribution and predominantly retail bankingactivity.A. Global map of credit risk, 2009The table below sets out the global credit risk exposure innominal amounts (except for derivatives and repos exposurewhich is expressed in equivalent credit) at December 31, 2009.Growth in lending was moderate, due to reduced demand (avery significant part of the growth was due to the change inperimeter with the incorporation of Sovereign Bank). Thenominal exposure to credit risk increased 8.8%, particularlyoutstanding to customers and commitments to customers.Excluding Sovereign Bank, growth was 3.3%.Spain is the most relevant unit en exposure to credit risk,(7% lower in absolute terms). Of note in the rest of Europe,which accounts for more than one-third of the credit exposure,is the presence in the UK. Overall, Europe accounts for 75% ofthe credit exposure.In Latin America investment-grade countries accounted for 96%of the region’s exposure.With the incorporation of Sovereign Bank, the US accounted for6% of credit exposure at the end of 2009.Grupo Santander. Gross exposure to credit riskMillion eurosSovereign fixed Private fixed Outstanding Disponible CommitmentsOutstanding Commitments income income to credit entidades to creditto customers to customers (exc. trading.) (exc. trading.) entities de crédito entities Total % %/dec. 08Spain 281,621 57,179 29,602 11,835 28,440 1,113 27,911 437,700 39.6% (7.1%)Parent bank 170,692 39,716 20,769 8,049 19,038 736 19,053 278,053 25.2% (8.6%)Banesto 80,109 11,167 6,204 2,003 6,696 225 8,701 115,104 10.4% 3.2%Others 30,819 6,296 2,629 1,784 2,706 152 157 44,543 4.0% (19.4%)Rest of Europe 305,831 36,827 3,844 16,025 9,025 155 18,877 390,583 35.3% 10.8%Germany 22,256 9 — 159 432 — 5 22,861 2.1% (5.0%)Portugal 22,143 8,276 2,734 1,410 2,425 — 1,519 38,507 3.5% 6.9%United Kingdom 228,044 26,484 464 14,136 5,172 155 17,132 291,587 26.4% 12.9%Others 33,387 2,058 646 320 996 — 220 37,627 3.4% 10.6%Latin America 104,965 45,537 24,280 1,821 20,684 19 10,648 207,953 18.8% 15.4%Brazil 62,952 30,996 16,719 1,212 14,535 — 5,564 131,978 11.9% 38.3%Chile 20,200 6,300 2,220 502 1,812 19 3,209 34,261 3.1% 22.0%Mexico 11,611 6,724 4,252 — 2,220 — 1,573 26,379 2.4% (7.3%)Others 10,202 1,516 1,089 108 2,118 — 303 15,335 1.4% (45.6%)United States 43,814 9,395 1,742 9,157 2,970 77 105 67,260 6.1%Rest of the world 1,017 262 80 1 167 — — 1,526 0.1%Total Group 737,246 149,200 59,547 38,839 61,287 1,363 57,540 1,105,022 100.00% 8.8%% of total 66.7% 13.5% 5.4% 3.5% 5.5% 0.1% 5.2% 100%% change/dec. 08 6.5% 27.2% 68.5% 45.3% (30.8%) (77.3%) 16.9% 8.8%Data at December 31, 2009, drawn up on the basis of legal company criteria.ECR (equivalent credit risk: net value of replacement plus the maximum potential value. Includes mitigants).Derivatives and repos exclude Sovereign and Alliance & Leicester.Balances with customers exclude repos (EUR 13,439 million) and other customer create assets (EUR 7,661 million).Balances with credit entities (excluding repos and trading) include EUR 29,718 million of deposits in central banks.Annual Report 2009 Risk management