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- **Record Profit Growth**: Q3 profit of EUR 3.5 billion, up 3% YoY, with RoTE improving to 16.1%.
- **Fee-Driven Revenue**: Fees rose 8% YoY, with Payments (+19%) and Wealth (+13%) leading growth.
- **Capital Return Focus**: EUR 10 billion share buyback program announced, with CET1 ratio at 13.1%.
- **Efficiency Gains**: 70 bps efficiency improvement from ONE Transformation, with cost of risk at 1.13%.
- **Strategic Initiatives**: Global platform rollouts (e.g., Gravity in Mexico) and Openbank-CIB merger to enhance deposit utilization and profitability.

**【CEO Summary Section】**
- Q3 2025 profit hit a record EUR 3.5 billion, marking the best 9-month performance in the company's history.
- Revenue grew 4% YoY in constant euros, driven by fee income (+8%) and disciplined cost management (expenses down 1%).
- Return on Tangible Equity (RoTE) improved to 16.1%, up 70 basis points YoY, with a target of 16.5% post-AT1 for 2025.
- CET1 ratio reached 13.1%, exceeding the original 12%+ target, with plans to distribute at least EUR 10 billion through share buybacks over 2025-26.
- ONE Transformation initiatives delivered 70 basis points of efficiency gains, with further upside from global platform rollouts (e.g., Gravity in Mexico, Chile, and Spain).

**【CFO Financial Commentary】**
- Total revenue EUR 46 billion (+4% YoY), with fees up 8% (EUR 12.3 billion) and NII stable at EUR 33.7 billion despite rate headwinds.
- Net fee income hit a record EUR 12.3 billion, with double-digit growth in Payments (+19%), CIB (+7%), and Wealth (+13%).
- Operating expenses down 1% YoY in current euros, with efficiency ratio improving to 41.3% (best in over 15 years).
- Cost of risk improved to 1.13% (down 10 bps YoY), with stable credit quality across geographies.
- Capital generation strong, with CET1 ratio at 13.1% and plans to maintain disciplined capital allocation (RoRWA 2.8%).

**【Q&A Highlights】**
- **RoTE Target Execution**: Q3 RoTE of 16.1% puts the company on track to meet the 16.5% post-AT1 target, driven by fee growth and cost efficiency.
- **Brazil Credit Quality**: Cost of risk in Brazil stabilized at 4.5% Q3, with provisions down 9% QoQ due to prudent risk management and improving macro trends.
- **Capital Allocation**: EUR 10 billion buyback program to begin post-Poland sale, with CET1 expected to remain above 13%.
- **U.S. Auto Performance**: Delinquency rates below historical averages, supported by strong labor markets and used car values.
- **Gravity Platform Rollout**: Mexico migration completed, with Spain and Chile already live, delivering cost savings and customer experience improvements.


Banco Santander, S.A. (SAN) Q3 2025 Earnings Call Transcript

- **Record Performance**: H1 2025 profit up 4%, with post-AT1 RoTE at 16% and cost-to-income ratio at 41.5%, the best in over 15 years.
- **Share Buybacks Accelerated**: EUR 10 billion buyback target for 2025-2026, with EUR 1.7 billion approved for 2025 execution.
- **Strategic Capital Deployment**: Poland sale proceeds used for TSB acquisition (4% EPS accretion by 2028) and buybacks, delivering 20%+ returns.
- **Brazil Challenges**: Higher rates drive provisions, but auto and payroll lending maintain profitability; cost of risk expected to stabilize below 5%.
- **U.K. Growth**: TSB acquisition to boost U.K. RoTE from 11% to 16% by 2028, supported by margin management and structural hedge.

**【CEO Summary Section】**
- Q2 2025 saw record quarterly profit of EUR 3.4 billion, marking the best first half in Santander's history. Revenue grew 5% in constant euros, driven by strong fee growth (near double-digit) and disciplined cost management. Post-AT1 RoTE reached 16%, up nearly 1 percentage point year-on-year.
- Accelerated share buybacks: Targeting EUR 10 billion for 2025-2026, with EUR 1.7 billion approved for 2025. Buybacks have been executed at an average price of EUR 3.9 per share, delivering a 20% return on investment.
- ONE Transformation progress: Efficiency ratio improved to 41.5%, with 243 basis points of efficiency gains since inception. Global businesses contributed 104 basis points of efficiency, surpassing 2025 targets.
- Strategic capital allocation: Poland sale generated 100 basis points of capital, with half reinvested in TSB acquisition (expected to boost group EPS by 4% by 2028) and half used for buybacks.

**【CFO Financial Commentary】**
- H1 2025 revenue: EUR 62 billion (5% growth in constant euros), driven by CIB (+9%), Wealth (+14%), and Payments (+17%). Net operating income rose 5%, with cost-to-income ratio at 41.5%.
- NII performance: +4% year-on-year (excluding Argentina), supported by margin management in Consumer (Europe and U.S.) and CIB's Global Markets growth. Fee income grew close to double digits, outpacing inflation.
- Capital strength: CET1 ratio at 13%, with organic capital generation of 54 basis points from attributable profit. Regulatory charges for 2025 revised to 20 basis points, down from initial estimates.
- Brazil dynamics: Provisions increased due to higher rates, but cost of risk expected to stabilize below 5% as rates normalize. Auto and payroll lending driving profitability despite reduced credit card issuance.

**【Q&A Highlights】**
- **U.K. NII & TSB Acquisition**: U.K. NII expected to grow slightly in constant euros, with TSB acquisition targeting 16% RoTE by 2028. Structural hedge and margin discipline offset deposit cost pressures.
- **Brazil Provisions**: Top-up provisions reflect conservatism amid 15% real rates, but cost of risk expected to normalize below 5% as rates decline. Auto and consignado loans driving profitability.
- **Consumer Segment**: U.S. Openbank deposits reached EUR 5 billion, with Europe volumes impacted by car registration declines. Cost of risk improving in U.S., with Europe normalization expected in coming quarters.
- **Litigation Risks**: AXA claim in U.K. provisions deemed immaterial; Mexico antitrust investigation under review but no fee impact anticipated.


Banco Santander, S.A. (SAN) H1 2025 Earnings Call Transcript

- **Record Profit Growth**: €3.4 billion Q1 profit (+19% YoY), driven by retail and consumer banking efficiency gains.
- **Capital Confidence**: €10 billion buyback target (2025-26) reflects 14% share repurchases since 2021 with 20% returns.
- **Digital Transformation**: 23% digital sales growth, 5% cost-to-serve reduction, and 14.8% efficiency ratio highlight operational excellence.
- **U.S. Expansion**: CIB revenue up 23% YoY, with Global Markets and U.S. partnerships driving fee growth.
- **Risk Management**: 1.14% cost of risk, 87% RWA above cost of equity, and Brazil NPL improvement offsetting macro risks.

**【CEO Opening Remarks】**
- Q1 2025 profit reached a record €3.4 billion, up 19% YoY, driven by all businesses. Retail and consumer banking dominate 70% of costs, with efficiency gains of 1 point and ROTE at 15.8%.
- Capital allocation targets €10 billion in buybacks (2025-26), reflecting confidence in profitability. Buybacks since 2021 have repurchased 14% of shares, yielding 20% returns.
- Digital transformation (One Transformation) reduces cost-to-serve by 5% and boosts digital sales 23% YoY. Global platform rollout on track to reduce costs further.

**【CFO Financial Highlights】**
- Q1 revenue up 5% YoY to €12.4 billion, with NII stable (€6.2 billion) despite Argentina rate cuts. Fees grow double digits, driven by 9 million global customers.
- Operating expenses up 2% YoY in constant euros, below inflation, with retail and consumer costs flat. Efficiency ratio improves to 14.8%, best in 15 years.
- CET1 ratio at 12.9%, up 30bps YoY, with 87% of RWA generating returns above cost of equity. Capital generation of 33bps net organic growth.
- Cost of risk at 1.14%, stable QoQ, with Brazil NPLs improving but U.S. labor market strength offsetting risks.

**【Q&A Key Themes】**
- **U.S. Growth**: CIB revenue up 23% YoY, driven by Global Markets and U.S. partnerships. Buybacks and organic growth prioritize capital deployment.
- **Poland Sale**: In discussions to sell 49% stake in Santander Polska, with proceeds to be redeployed in growth areas.
- **Brazil Risks**: Tightening underwriting (score 8/10) and collateral focus reduce NPLs. Cost of risk expected to stabilize post rate hikes.
- **Digital Progress**: 9 million global customers, 16% YoY deposit growth, and PagoNxt EBITDA margin at 29% reflect platform scale.
- **Capital Discipline**: 2025 ROTE target of 16.5% achievable via rate hedging (€152 billion ALCO portfolio) and diversified earnings.


Banco Santander, S.A. (SAN) Q1 2025 Earnings Call Transcript

- **Record 2024 Results**: €12.6 billion profit, 8 million new customers, 12.8% CET1 ratio.
- **Efficiency Gains**: 2% cost reduction via ONE Transformation, 41.8% cost-to-income ratio.
- **U.S. Growth Driver**: Openbank deposits €2B+; consumer division to lead 2025 earnings growth.
- **Brazil Resilience**: 100% hedged for 2025 rate changes; cost of risk at 1.15%.
- **Shareholder Returns**: €10B buybacks over 2025-2026; 50% profit distributed as cash/buybacks.

**【Ana Botín Opening Remarks】**
- Santander achieved record 2024 results with €12.6 billion profit, 8 million new customers, and a 12.8% CET1 ratio.
- ONE Transformation drove efficiency, reducing costs by 2 percentage points and improving RoTE to 16.3%.
- U.S. business acted as a natural hedge against Latin American currency devaluation, supporting shareholder value growth of 14%.

**【Hector Grisi Financial Performance】**
- Double-digit revenue growth (10% in constant euros) supported by retail, CIB, and wealth businesses.
- Fee income up 11% due to network effects and customer growth; consumer fees grew double-digit.
- Cost-to-income ratio improved to 41.8%, with retail and consumer costs flat despite 9% revenue growth.
- CET1 ratio rose 30bps in Q4 to 12.8%, driven by organic capital generation and RWA optimization.

**【José García Cantera Capital Allocation】**
- 2025 target: €10 billion share buybacks over 2025-2026, with 50% of profit distributed as cash and buybacks.
- Excess capital will be returned to shareholders post-organic growth and dividends.
- Regulatory capital charges (~60bps annually) will be offset by asset mobilization and risk-weighted asset growth control.

**【Q&A Highlights】**
- **U.S. Strategy**: Openbank deposits exceeded €2 billion, improving loan-to-deposit ratio by 12pts. U.S. consumer division expected to be top-performing in 2025.
- **Brazil Sensitivity**: 100% hedged for 2025 NII impact of rate changes; cost of risk at 1.15% vs. 1.2% target.
- **ONE Transformation Savings**: Gravity platform rolled out to 30% of Group; full deployment by end-2025 to reduce cost per transaction by 10%+.
- **Capital Flexibility**: 87% of RWAs above cost of equity, enabling disciplined capital allocation despite macro volatility.

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