Banco Santander (SAN) Q3 2025 earnings summary

Executive summary

• Achieved record attributable profit of €10,337 million for 9M 2025, up 11% year-over-year, with Q3 profit of €3,504 million, marking the sixth consecutive record quarter and driven by strong revenue growth and a customer base of 178 million, up 7 million YoY.

• Transformation initiatives, including the ONE Transformation program and digitalization, delivered significant efficiency gains, with ROTE (post-AT1) at 16.1% and CET1 capital ratio at a record 13.1%.

• All global businesses—retail, consumer, CIB, wealth, and payments—delivered strong profit growth, supported by disciplined capital allocation and robust credit quality.

• Earnings per share rose 16% year-over-year to €0.66, and tangible net asset value per share was €5.56 at end-September 2025.

Financial highlights

• Total income for 9M 2025 was €46.3 billion, flat in euros but up 4% in constant euros; net interest income was €33.8 billion (down 2% in current euros, up 2% in constant euros), and net fee income reached a record €10.0 billion, up 4% in current euros and 8% in constant euros.

• Operating expenses decreased 1%, improving the efficiency ratio to 41.3%, the best in over 15 years.

• Cost of risk improved to 1.13% (down 5bps YoY), and NPL ratio remained stable at 2.92% with a coverage ratio of 67%.

• EPS up 16% YoY; TNAVps + Cash DPS up 15% YoY.

Outlook and guidance

• On track to meet or exceed 2025 targets, including revenue of ~€62 billion, ROTE post-AT1 of ~16.5%, efficiency ratio below 42%, and double-digit growth in TNAV per share plus cash DPS.

• Cost base expected to decline versus 2024, with mid-high single digit revenue growth and continued strong performance in Q4.

• CET1 ratio expected to remain at or above 13%, with regulatory charges for 2025 lower than initially anticipated.