Banco Santander (SAN) Q4 2024 earnings summary

Executive summary

• Achieved record attributable 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, and disciplined cost control.

• Added eight million new customers, reaching 173 million globally, and improved RoTE to 16.3% from 15.1%.

• Exceeded all upgraded 2024 targets, including revenue growth, efficiency, cost of risk, RoTE, and CET1 capital ratio.

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

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

Financial highlights

• Total income rose 8% to €62.2 billion (+10% in constant euros); net interest income and net fee income both increased 8%.

• Net operating income grew 12% to €36.2 billion, and cost of risk improved to 1.15%, better than initial guidance.

• Efficiency ratio improved to 41.8%, the best in 15 years.

• NPL ratio decreased to 3.05%, with coverage at 65%.

• EPS rose 18% to €0.77; TNAV per share increased to €5.24 (+14% including cash dividends).

Outlook and guidance

• 2025 targets: revenue of c.€62 billion, mid-to-high single-digit fee growth, lower costs, cost of risk c.1.15%, RoTE >17% (c.16.5% post-AT1), and CET1 of 13%.

• Plan to return €10 billion to shareholders via buybacks from 2025 and 2026 earnings and excess capital, in addition to standard cash dividends.

• 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.