Santander Achieves Record Profit of €10.337 Billion by September, Up 11%

Banco Santander reported a net attributable profit of €10.337 billion in the first nine months of 2025, marking an 11% increase compared to the same period last year.

This represents the bank's best result for this period, according to a statement issued to the National Securities Market Commission (CNMV).

Considering only the third quarter, the net attributable profit rose to €3.504 billion, an 8% year-on-year increase. Additionally, the bank has achieved six consecutive quarters of record results.

Santander highlights that these results were supported by a strong performance in net interest income, record levels of fee income, and further efficiency improvements, with enhanced credit quality. Furthermore, it notes that the global customer base reached 178 million, having added over seven million new customers in the past twelve months.

Revenues amounted to €46.277 billion, stable in current euros but 4% higher in constant euros, thanks to record fee income (€10.011 billion). The net interest margin fell by 2.5% in current euros, to €33.816 billion, although in constant euros (excluding Argentina) it increased by 3%.

The return on tangible equity (RoTE) stood at 16.1%, with an increase of 0.7 percentage points (post-AT1). Earnings per share were €0.66 at the end of September (+16%), and the tangible net asset value (TNAV) per share was €5.56.

Santander notes that, including the cash dividend of €0.11 paid in May and the interim dividend of €0.115 to be paid in November, the total value creation (TNAV plus cash dividend per share) increased by 15% year-on-year.

The president of Banco Santander, Ana Botín, emphasized that the accounts up to September are "very good results" and that in the past twelve months, the bank has grown by more than seven million new customers and increased profitability above 16% (RoTE post-AT1), with a 16% growth in earnings per share.

"All this reflects the strength of our business model, the discipline in profitable growth, the solidity of our balance sheet, and the advantages of our global and local scale, as well as the diversification by businesses and geographies. Our One Transformation program drives efficiency through the development of shared global platforms that enhance customer experience and reduce service costs," she stated in the release.

"Looking ahead, we are on track to meet all our targets for 2025, and in a context of geopolitical and market uncertainty, we are confident in continuing to generate profitable growth by leveraging the strength of our network, our global scale, and disciplined capital allocation," she concluded.

The income statement reflects a 1% improvement in operating costs thanks to the use of shared global service platforms and a simpler structure. The efficiency ratio improved to 41.3%, its best level in over 15 years, driven by advances in the execution of the One Transformation program.

Provisions decreased by 1%, with an improvement in the cost of risk by five basis points, to 1.13%, in line with the target for 2025, supported by good credit quality and active risk management. The retail banking and consumer finance segments, which account for around 80% of the group's provisions, improved to 0.89% and 2.06%, respectively.

The non-performing loan ratio improved to 2.92%, with a decrease of 14 basis points, and the coverage ratio stood at 67%.

Meanwhile, the CET1 'phased in' capital ratio increased to 13.1%, 0.1 percentage points higher in the quarter, thus exceeding the upper end of the bank's operating range (12%-13%) and surpassing the target for 2025. This increase was due to the solid attributable profit (+56 basis points), which offset shareholder remuneration, AT1 bond costs (-30 basis points), and other charges.

In terms of the balance sheet, customer funds grew by 0.9% in current euros, to €1.33 trillion. This figure includes investment funds, pensions, and managed assets. Deposits fell by 1.9% in current euros, to €1.04 trillion, while loans declined by 3.8% in the first nine months, ending the period at €1.06 trillion.

By segments, Santander highlights that it achieved "solid growth" in its five global businesses in constant euros: retail banking increased its earnings by 9% (5% in current euros); the consumer segment, by 6% (4% in current euros); corporate and investment banking, by 10% (6% in current euros); asset management, by 21% (17% in current euros); and the payments business, by 62% even after isolating the effect of second-quarter 2024 charges (269% in current euros, including the effect of charges).

By geography, Spain was the main business in terms of profit generation: almost 14% more in current euros, reaching €3.233 billion by the end of September. It was followed by Brazil, which reduced its earnings by 10%, to €1.589 billion. Profits also fell in Mexico by almost 2% in current euros, to €1.211 billion, a decline similar to that recorded in the UK business.