Banco Santander (SAN) Q4 2025 & Acquisition earnings summary

Executive summary

• Achieved record attributable profit of €14.1 billion in 2025, up 12% year-over-year, with strong performances across all global businesses and four consecutive years of record results.

• Added 8 million new customers, reaching 180 million total, and increased EPS by 17%.

• Announced acquisition of Webster Financial Corporation for $12.2 billion, aiming to create a top-ten U.S. retail and commercial bank and targeting 18% U.S. ROTE by 2028.

• Transformation initiatives improved efficiency, with cost-to-income ratio at 41.2% and ROTE post-AT1 at 16.3%.

• Shareholder value creation continued, with a new €5 billion buyback, annual dividend per share up 14%, and EPS up 17%.

Financial highlights

• Total income for 2025 was €62.4 billion, flat in euros but up 4% in constant euros; net fee income reached €13.7 billion, up 5% (+9% in constant euros).

• Net operating income reached nearly €37 billion, with expenses down 1% in absolute terms and efficiency ratio at 41.2%.

• Cost of risk at 1.15%, NPL ratio at 2.91%, and NPL coverage ratio at 66%.

• CET1 ratio increased to 13.5%, above the 12-13% target.

• EPS increased 17% to €0.91; TNAV per share up 14% to €5.76.

Outlook and guidance

• Targeting ROTE above 20% by 2028, with U.S. ROTE expected to reach 18% post-Webster acquisition.

• 2026 is a transition year; revenue expected to grow mid-single digit ex-M&A, double digit including M&A.

• CET1 ratio expected to be 12.8-13% at end-2026, above 13% in 2027.

• Committed to at least €10 billion in share buybacks for 2025 and 2026.

• Shareholder remuneration policy targets 50% payout of reported profit, split between cash dividends and buybacks.