Banco Santander (SAN) Q4 2024 earnings summary

Executive summary

• Achieved a record profit of €12.6 billion in 2024, up 14% year-over-year, marking the third consecutive year of record results, driven by strong revenue and customer growth across all global businesses.

• Added eight million customers, reaching 173 million globally, with efficiency ratio at 41.8%, the best in 15 years.

• Fully loaded CET1 capital ratio reached an all-time high of 12.8%, with TNAV per share and dividend per share up 14%.

• Shareholder remuneration increased, with cash DPS up 39% year-over-year and total returns of €9.5bn since 2021 via buybacks and dividends.

• Diversified business model and global platforms, such as One Transformation and Gravity, contributed to sustainable growth and operational resilience.

Financial highlights

• Total revenue rose 10% year-over-year to €62.2bn, with net interest income up 10% and net fee income up 11% in constant euros.

• Net operating income reached €36.2bn, and cost of risk improved to 1.15%, better than initial guidance.

• Cost-to-income ratio improved to 41.8%, the best in 15 years.

• NPL ratio decreased to 3.05%, with coverage at 65% and strong collateral and provisions.

• EPS increased 18% year-over-year to €0.77.

Outlook and guidance

• 2025 targets include resilient revenue of around €62 billion, mid-to-high single-digit fee growth, and absolute cost reduction year-over-year.

• Targeting RoTE post-AT1 of about 16.5% and aiming for returns above 17% on a pre-AT1 basis.

• Plan to distribute €10 billion in share buybacks over 2025 and 2026, with a 50% payout split between cash dividends and buybacks.

• CET1 ratio expected to be at 13% by year-end 2025, with flexibility to operate between 12%-13%.

• Continued focus on capital management, efficiency gains, and disciplined capital allocation.