Banco Santander S.a Stock Earnings Reports

Santander reported a very strong Q3 2025 with record quarterly profit of EUR 3.5bn and the best nine-month period on record. Revenue grew 4% in constant euros, driven by resilient net interest income (NII) and a record quarter for fees, while expenses fell 1% in current euros as ONE Transformation (simplification, automation and shared platforms such as Gravity) progresses. Group RoTE improved to 16.1% (post-AT1) and management reiterated an elevated RoTE target ~16.5% for 2025. Capital strength is highlighted by a CET1 ratio at an all-time high of 13.1% and continued capital generation; management expects CET1 to increase further in Q4 and confirmed plans to distribute at least EUR 10bn to shareholders via share buybacks for 2025–26 (subject to approvals). All global businesses contributed to growth (notably Payments, Wealth and CIB), Retail and Consumer showed improving margins and fee mix, and cost of risk/credit quality continued to improve (group cost of risk around ~1.13% in Q3; guidance ~1.15% for year end). Key transactions: Poland disposal remains included in reported figures until close (expected Q1 timing); TSB acquisition on track for early 2026 with previously announced capital impacts unchanged. Operating priorities remain profitable organic growth, strict capital allocation, further rollout of global platforms (with expected incremental efficiency gains as mainframes are decommissioned) and active management of regional exposures (e.g., Brazil, U.S. auto, Argentina). Management reiterated guidance items: ~EUR 62bn revenue target for 2025, tax rate around mid-to-high 20s (~27%), other results for the year ~EUR 3.0–3.2bn, and expectation that RWA growth will be close to flat in Q4 after securitizations/SRTs and other mobilization initiatives.