Banco Santander (SAN) investor relations material

Financial performance highlights

• Net operating income rose 12% YoY to €17.6bn, with underlying attributable profit up 15% to €7.3bn, driven by higher revenue and lower costs.

• Attributable profit reached €8.97bn, a 31% increase, including non-recurring items such as the Poland business disposal.

• Efficiency ratio improved to 45.3%, reflecting cost discipline and digital transformation initiatives.

• Tangible net asset value per share plus cash dividends increased 19% YoY, supporting strong shareholder value creation.

• CET1 capital ratio reached 14.0%, well above regulatory requirements, with strong organic capital generation.

Business model and strategy

• Operates a diversified model across five global businesses: Retail, Openbank, CIB, Wealth, and Payments, with 182 million customers.

• Maintains geographic and business diversification in both assets and liabilities, with a strong presence in Europe and the Americas.

• Loans and deposits grew 5% YoY (ex-TSB), with a highly collateralized and retail-focused loan portfolio.

• Digital transformation and AI deployment are delivering structural efficiency improvements and cost reductions.

• Strategic focus on customer primacy, omnichannel experience, and scalable global platforms.

Capital and funding

• Enhanced capital position through disciplined front-book pricing, asset rotation, and risk transfer activities.

• Global Asset Desk drives balance sheet mobilization, with €30-35bn RWA mobilization targeted per year.

• AT1 and Tier 2 capital levels are robust, with ample distance to regulatory triggers and strong distributable items.

• Diversified bond portfolio represents 8% of total assets, with limited mark-to-market impact on CET1.

• Conservative FX hedging policy stabilizes capital ratios and mitigates P&L volatility.