Santander Bank got a Attributed profit of 14,101 million euros in 2025, 12% more than in the previous year (+16% in constant euros), which represents another «record» year, and reached 180 million customers for the first time, after adding eight million in the year. The «solid results» were supported by a «good evolution» of the interest marginrecord fee income and improved efficiency, along with positive evolution of credit quality. Attributable profit for the fourth quarter amounted to 3,764 million euros (+15%), which represents the seventh consecutive quarter with record results. The group continued to increase profitability and create value for shareholders, with a post-AT1 return on tangible equity (RoTE) of 16.3% (+0.8 percentage points)an earnings per share (EPS) of 0.91 euros (+17%) and a tangible book value (TNAV) per share of 5.76 euros at the end of 2025. When including cash dividends paid during the year, total value creation (TNAV plus cash dividend per share) increased 14%.
Customer funds grew by 6% in constant euroswith an increase in deposits of 5% and investment funds of 14% in constant euros, reflecting greater customer activity and the positive dynamics of the markets. Credit increased by 4% in constant euros, reaching around one billion euros, driven by growth in all businesses. This progress was supported by the incorporation of eight million new customers, especially in Retail and Consumer, as well as the growth of Payments and Wealth, benefiting from a greater volume of transactions and a higher level of customer loyalty.
Total revenues stood at 62,390 million eurosstable, but with an increase of 4% in constant euros, supported by record commission income of 13,661 million euros, 5% more (+9% in constant euros), and a solid interest margin (+3% in constant euros, excluding Argentina). This development reflects «solid commercial activity, which offset the impact of a less favorable interest rate environment in several markets.» Costs improved (-1% in current euros), as the group took advantage of its shared global platforms and services, simplified its structure and reinforced cost discipline across all businesses and markets. The efficiency ratio improved to 41.2%, its best level in more than 15 yearsdriven by progress in the execution of ONE Transformation, the group’s multi-year program to simplify the organization, deploy shared global platforms and services and capture benefits of scale across countries and businesses. The endowments They remained practically stable, with a cost of risk of 1.15%, in line with the group’s objective, supported by solid credit quality, a solid and highly diversified loan portfolio, and proactive risk management. The non-performing loan ratio improved to 2.91% (-14 basis points)remaining at historically low levels, with a solid coverage ratio of 66%, reflecting prudent credit granting criteria and a continuous focus on monitoring and early identification of risk. The CET1 capital ratio rose to 13.5%, a new all-time high, and well above the top of the bank’s operating range (12-13%). This increase was due to strong earnings generation, which more than offset shareholder remuneration and other capital impacts. «In 2025 we achieved record results again and fulfilled our three-year strategic plan. We added eight million new clients, achieved record fee income, reduced costs and increased earnings per share by 17%, while maintaining a solid capital position, with a CET1 ratio of 13.5%,» said Ana Botín, president of Banco Santander. «The results reflect the success of our ONE Transformation strategydiscipline in capital allocation and the impact that the network effect has on our global businesses. «The deployment of shared global platforms is improving the customer experience and reducing the cost of service, driving sustained operating leverage and an improvement in our efficiency ratio from 45.8% to 41.2% over the last three years.»
DIVIDEND AND BUY BACKS
Santander reiterated its commitment to distribute at least 10 billion euros through share buybacks charged to 2025 and 2026 results, and excess capital. This includes a buyback of shares of about 5,000 million euros approved this Tuesday and for which the corresponding regulatory authorizations have already been received, which is divided into an approximate amount of 1,800 million euros charged to the results of the second half of 2025, and some 3,200 million euros linked to excess capital from the sale of 49% of Santander Poland. Along with the €1.7 billion share buyback already completed charged to first half 2025 results, These operations raise the total of announced share buybacks to 6.7 billion euroswith more remuneration expected from 2026 results and excess capital, which keeps the group in line to meet its commitment. Since 2021, including the announced €5 billion buyback, Santander will have returned €16.2 billion to shareholders through share buybacks and will have repurchased around 18% of its outstanding shares. In November 2025, the bank paid an interim cash dividend of 11.5 euro cents per share against 2025 results, 15% higher than the equivalent dividend of the previous year. The total amount distributed to shareholders charged to the results of the first half of 2025 amounted to approximately 3.4 billion euroswhich is equivalent to about 50% of the group’s profit in the first semester.
PERSPECTIVES
Looking to the future, Santander expects global economic growth to remain broadly stable, supported by moderation in inflation as well as robust employment in most of its major markets. Following the «solid» performance in 2025, Santander has set its targets for 2026, excluding Poland, TSB and Webster. Thus, the group foresees for the income mid-digit growth in constant euros, with an increase in commission income greater than that of interest margin. In the case of the costsanticipates a decrease in constant euros, and a higher profit, compared to 14,101 million in 2025. In addition, it projects a stable cost of risk, a CET1 capital ratio of 12.8-13%within the operating range of 12-13%, and a TNAV plus cash dividend per share: at least double-digit growth throughout the cycle. After the Webster acquisitionin 2027 the bank also foresees double-digit revenue growth in constant euros, positive operating leverage, profit growth of 14-16% in constant euros and a CET1 ratio of over 13%. Looking ahead to 2028, it foresees a RoTE of more than 20%.
