{"id":9156,"date":"2026-04-21T18:05:44","date_gmt":"2026-04-21T18:05:44","guid":{"rendered":"https:\/\/www.europesays.com\/spain\/9156\/"},"modified":"2026-04-21T18:05:44","modified_gmt":"2026-04-21T18:05:44","slug":"banco-santander-sa-san-q3-2025-earnings-call-highlights-record-profits-and-strategic-growth","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/spain\/9156\/","title":{"rendered":"Banco Santander SA (SAN) Q3 2025 Earnings Call Highlights: Record Profits and Strategic Growth"},"content":{"rendered":"\n

This article first appeared on GuruFocus<\/a>.<\/p>\n

Quarterly Profit: EUR3.5 billion, a new record.<\/p>\n

Customer Base: Increased by EUR7 million year-on-year to EUR178 million.<\/p>\n

Return on Tangible Equity (RoTE): Increased by 70 basis points to 16.1%.<\/p>\n

Capital Ratio (CET1): All-time high of 13.1%.<\/p>\n

Revenue Growth: 4% increase in constant euros.<\/p>\n

Net Interest Income (NII): Increased 2% year-on-year.<\/p>\n

Quarterly Fees: Up 8% year-on-year.<\/p>\n

Expenses: Decreased by 1% in euros.<\/p>\n

Net Operating Income: Increased by 5% year-on-year.<\/p>\n

Cost of Risk: Improved to 1.13%.<\/p>\n

Loan Loss Provisions: Increased by 5% year-on-year.<\/p>\n

Net Fee Income: Achieved record levels, growing high single digits.<\/p>\n

Efficiency Ratio: Improved to 41.3%.<\/p>\n

Earnings Per Share: Rose 16% year-on-year.<\/p>\n

TNAV plus Cash Dividend per Share: Increased by 15%.<\/p>\n

Share Buybacks: Plan to distribute at least EUR10 billion through share buybacks for ’25 and ’26.<\/p>\n

Release Date: October 29, 2025<\/p>\n

For the complete transcript of the earnings call, please refer to the full earnings call transcript<\/a>.<\/p>\n

Banco Santander SA (NYSE:SAN<\/a>) reported a record quarterly profit of EUR 3.5 billion, marking the best nine-month period ever for the company.<\/p>\n

The company achieved strong revenue growth across its global businesses, supported by a solid customer base that increased by EUR 7 million year-on-year.<\/p>\n

Banco Santander SA (NYSE:SAN<\/a>) maintained a strong capital ratio, ending the quarter at an all-time high of 13.1%, with robust credit quality.<\/p>\n

The company is on track to exceed its strategic plan targets for 2023-2025, driven by disciplined capital allocation and improved profitability.<\/p>\n

Banco Santander SA (NYSE:SAN<\/a>) announced plans to distribute at least EUR 10 billion to shareholders through share buybacks for 2025-2026, subject to regulatory approvals.<\/p>\n

Currency headwinds impacted the company’s cash dividend per share growth, despite a 15% increase.<\/p>\n

The company faces challenges in Brazil due to high real interest rates, which are impacting corporate clients, particularly in the agribusiness sector.<\/p>\n

In Argentina, the company is cautious due to high inflation and real interest rates, leading to a cost of risk of nearly 7%.<\/p>\n

The UK Motor Finance review by the FCA could result in additional provisions, although the impact is not expected to be material for the group.<\/p>\n

The company’s cost of risk in Mexico saw a technical change from Stage 2 to Stage 3 loans, although overall asset quality remains stable.<\/p>\n

Story Continues <\/p>\n

Q: Looking at your RoTE target for the year of 16.5%, what would be the main drivers to achieve this in Q4? Do you expect revenue and NII to increase, or will fees drive performance? Also, how should we think about 2026? A: (Hector Grisi Checa, CEO) We expect a strong Q4 performance driven by higher fees, momentum from ONE Transformation, and lower costs. We are confident in achieving our RoTE target of around 16.5%. For 2026, we will provide more details at our Investor Day, but we expect continued improvement across all business units.<\/p>\n

Q: Regarding capital, you guided for around 20 basis points of regulatory headwinds for the rest of the year. Is this still the case, and how comfortable are you with the 13% CET1 target? A: (Jose Antonio Garcia Cantera, CFO) The outlook for regulatory charges is better than expected, with some charges postponed to 2026. We expect to generate capital in Q4, and the CET1 ratio should increase further. The capital impacts from transactions like the Santander Bank Polska sale remain unchanged.<\/p>\n

Q: Can you update us on the rollout of the Gravity platform and the efficiency gains you are capturing? A: (Hector Grisi Checa, CEO) We recently migrated Mexico to Gravity, and Spain and Chile are already using it. We are shutting down mainframes, which reduces costs significantly. By the end of 2026, all major countries will be migrated, leading to further efficiency gains.<\/p>\n

Q: Could you discuss the net interest income outlook in Brazil, considering expected interest rate cuts? A: (Jose Antonio Garcia Cantera, CFO) We have a negative sensitivity to high rates in Brazil, so rate cuts should benefit us. We expect stable NII in 2025, with positive contributions from rate cuts in 2026 and 2027.<\/p>\n

Q: What is your view on the deposit growth and NIM outlook in the UK for 2026? A: (Jose Antonio Garcia Cantera, CFO) We expect NII to increase in the UK in 2026, driven by structural hedge repricing and volume growth. We anticipate low to mid-single-digit NII growth, excluding TSB.<\/p>\n

For the complete transcript of the earnings call, please refer to the full earnings call transcript<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"This article first appeared on GuruFocus. Quarterly Profit: EUR3.5 billion, a new record. Customer Base: Increased by EUR7…\n","protected":false},"author":2,"featured_media":9157,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[121],"tags":[144,4886,5745,5743,4263,5742,5746,5744,691,5741],"class_list":["post-9156","post","type-post","status-publish","format-standard","has-post-thumbnail","category-banco-santander","tag-banco-santander","tag-capital-ratio","tag-hector-grisi-checa","tag-jose-antonio-garcia-cantera","tag-net-interest-income","tag-net-operating-income","tag-quarterly-profit","tag-return-on-tangible-equity","tag-revenue-growth","tag-share-buybacks"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/posts\/9156","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/comments?post=9156"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/posts\/9156\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/media\/9157"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/media?parent=9156"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/categories?post=9156"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/tags?post=9156"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}