Banco Santander reported first-quarter net attributable profit of €3.4bn for 2025 (Q1 2025), representing a 19% increase compared to the same period last year.
The Spanish bank’s earnings per share (EPS) rose 26% to €0.21, supported by growth in net fee income and operational efficiency improvements. The group confirmed it remains on course to achieve its 2025 financial objectives.
Total income rose by 1% to €15.54bn, or 5% in constant euros, with net fee income reaching a record €3.37bn, up 9% in constant euros. Net interest income remained stable year-on-year, though it recorded a 4% rise when excluding the impact of Argentina.
The growth in profit was primarily attributed to reduced expenses, improved cost control, and revenue gains from customer-related activities. Operating expenses fell 1% to €6.49bn, leading to an improvement in the efficiency ratio to 41.8%.
The bank noted savings of nearly €500m since December 2022 from its digital transformation programme, which includes the implementation of its cloud-based Gravity platform.
Net operating income rose 2% to €9.05bn, and profit before tax increased by 13% to €5.19bn. Loan-loss provisions were up 1% to €3.16bn, in line with stable credit quality.
The cost of risk decreased to 1.14%, and the non-performing loan ratio dropped below 3% to 2.99%, a level last seen over 15 years ago.
Banco Santander reported a CET1 capital ratio of 12.9%, at the upper end of its target range of 12–13%, supported by strong organic capital generation. The bank is set to pay a final cash dividend of €0.11 per share on 2 May 2025, bringing the total dividend related to 2024 earnings to €0.21 per share, a 19% increase year-on-year.
Additionally, two share buyback programmes valued at €3.1bn will complement dividend payments. These actions are expected to result in total shareholder remuneration of approximately €6.3bn against 2024 earnings. Since November 2021, the bank has repurchased around 14% of its outstanding shares.
Retail and Commercial Banking posted an attributable profit of €1.9bn, up 28%, driven by growth in revenue and improved efficiency.
The unit added eight million new customers and maintained a RoTE of 17.6% post-AT1. Loans declined 1%, while deposits rose 2%.
The Digital Consumer Bank generated €492m in profit, marking a 6% rise. Loans increased 4%, and deposits surged by 12%.
The unit launched Openbank in Mexico and expanded its customer base in the US, where it formed a partnership with Verizon.
Corporate and Investment Banking (CIB) delivered record quarterly profit of €806m, an 18% increase, with revenue at €2.2bn. The division benefited from growth in Global Markets and Corporate Finance, particularly in the US. RoTE stood at 21.6% post-AT1.
The Wealth Management & Insurance unit saw profit rise 28% to €471m. Assets under management grew to €511bn, supported by gains in private banking and asset management businesses.
The Payments segment posted a 30% increase in profit to €126m, with growth across cards, merchant transactions, and digital payments. PagoNxt processed 3.5bn monthly transactions, a 10% year-on-year increase. The card business reported €81bn in spending and a RoTE of 19.2% post-AT1.
Banco Santander reaffirmed its full-year targets for 2025, projecting total revenue around €62bn. The bank also expects mid-to-high single-digit growth in net fee income, a cost of risk near 1.15%, a CET1 ratio of approximately 13%, and a return on tangible equity of about 16.5% post-AT1.
Banco Santander executive chair Ana Botín said: “We’ve had a strong start to 2025, growing the number of customers we serve, increasing RoTE to 15.8% and generating a 26% uplift in earnings per share.
“Our global businesses are all performing well, underlining the impact of our transformation and ability to further improve operating efficiency.”
