- The board has approved today a new €5 billion share buyback programme
- Profit rose 12% to €14,101 million in 2025, marking the fourth consecutive year of record results
- Return on tangible equity (RoTE) post-AT1 increased to 16.3%
- The CET1 capital ratio reached a new all-time high of 13.5%
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- Revenue met the target (€62.4 billion), with the bank achieving record net fee income (+5% yoy)[i].[1]
- Operating expenses fell by 1%, reflecting the bank’s transformation towards a simpler, more digital and globally integrated model. As a result, the efficiency ratio improved to 41.2%.
- Loan-loss provisions were stable with a solid cost of risk at 1.15%, on the back of proactive risk management, low unemployment rates and easing monetary policies in most countries.
- In the fourth quarter, attributable profit reached a new record of €3,764 million, up 15% year-on-year.
- Santander reiterated its commitment to distribute at least €10 billion from 2025-26 earnings and excess capital through share buybacks, with €5 billion approved today and for which regulatory approvals have been received[ii].
- Santander achieved all its targets for 2025: €62.4 billion in revenue; mid-high single digit growth in net fee income; lower costs in euros; cost of risk of 1.15%; RoTE of 16.3% post-AT1; and a CET1 ratio of 13.5%.
- For 2026, excluding perimeter impacts, the bank is targeting mid-single-digit revenue growth and lower costs in constant euros, higher profits and a CET1 ratio of 12.8-13%[iii].
- Following the acquisition of Webster, in 2027 the bank expects double-digit revenue growth, positive operational leverage, mid teens profit growth in constant euros[iv] and the CET1 ratio over 13%. And for 2028, over 20% RoTE3.
[1] Notes at the end of the press release.
[i] Reconciliation of underlying results to statutory results, available in the ‘Alternative Performance Measures’ section of the financial report at CNMV and at santander.com.
[ii] As previously announced, Santander intends to allocate at least €10bn to shareholder remuneration in the form of share buybacks, corresponding to the 2025 and 2026 results, as well as to the expected excess capital. This share buyback target includes: (i) buybacks that are part of the existing shareholder remuneration policy outlined below, and (ii) additional buybacks following the publication of annual results to distribute year-end excesses of CET1 capital. The current remuneration policy for the 2025 results, which the board intends to apply, remains the same as for the 2024 results, consisting of a total shareholder remuneration of approximately 50% of the Group's reported profit (excluding non-cash and non-capital ratios impact items), distributed in approximately equal parts between cash dividends and share buybacks. The execution of the shareholder remuneration policy and share buybacks to distribute the excess CET1 capital is subject to corporate and regulatory decisions and approvals.
[iii] Note: targets market dependent. Based on macro assumptions aligned with international economic institutions. Targets assuming cost of risk stable. 2026 targets are set excluding Poland, TSB and Webster; 2027 targets including TSB and Webster. CET1 ratio targets including all the impacts from inorganic transactions.
[iv] Excluding the capital gain resulting from the sale of Santander Bank Polska to Erste Group in 2026, as well as TSB and Webster integration and restructuring charges.
All variations are year-on-year unless otherwise stated.
Banco Santander reported an attributable profit of €14,101 million in 2025, up 12% year-on-year (or +16% in constant euros), marking another record year, with total customers reaching 180 million for the first time after adding eight million customers in the year. Strong results were driven by resilient net interest income, record fees and efficiency gains, with continued improvement in credit quality. Fourth-quarter attributable profit reached €3,764 million (+15%), marking the seventh consecutive quarter of record results.
The group continued to increase profitability and create value for shareholders, achieving a return on tangible equity (RoTE) of 16.3% (+0.8 percentage points) post-AT1, earnings per share (EPS) of €0.91 (+17%) and tangible net asset value (TNAV) per share of €5.76 at year-end 2025. Including cash dividends paid during the year, total value creation (TNAV plus cash dividend per share) rose by 14%.
Customer funds grew 6% year-on-year in constant euros, with deposits up 5% and mutual funds up 14% in constant euros, reflecting higher customer activity and positive market dynamics. Loans rose 4% in constant euros to around €1.0 trillion, driven by growth across all businesses. This growth was supported by the addition of eight million customers, particularly in Retail and Consumer, as well as continued expansion in Payments and Wealth, benefitting from increased transaction volumes and customer engagement.
Total income stood at €62,390 million, flat in euros but up 4% in constant euros, driven by record net fee income of €13,661 million, up 5% (+9% in constant euros), and resilient net interest income (+3% in constant euros excluding Argentina). This reflects robust customer activity, which offset the impact of a less favourable interest rate environment in several markets.
These results reflect the continued impact of our ONE Transformation strategy, disciplined capital allocation and the strength of network effects across our global businesses. The deployment of shared global platforms is improving customer experience while reducing cost-to-serve, driving sustained operational leverage and a reduction in our cost-to-income ratio from 45.8% to 41.2% over the past three years.
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