1058 GMT - Banco Santander's reliance on annual risk-weighted assets mobilization presents an ongoing but manageable challenge, especially ahead of a potential deterioration in the private credit market, Deutsche Bank says. The Spanish bank's strong capital ratio attests to its strategy for managing risk and allocating capital effectively, analyst Alfredo Alonso and associate Atul Hanamante write. Operating these optimization programs--asset sales, guarantees and securitizations--mobilizes around 40 billion euros annually, maintaining its net risk-weighted asset growth near zero, they note. But relying on this financial engineering in an economic downturn could prove tricky. They add that Santander could be criticized for its lack of leadership in most of its units but the overall group is well coordinated and its assets are solidly managed. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

November 17, 2025 05:59 ET (10:59 GMT)

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