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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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SAN

SAN fundamentals

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