Banco Santander, S.A. Revenue & Financials

Santander Group reported underlying total income of EUR 62.2 billion in FY2024, a 10% increase in constant euros from EUR 57.6 billion in FY2023, with attributable profit to the parent rising to EUR 12.57 billion from EUR 11.08 billion — a 14% year-over-year increase (15% in constant euros). The group's net interest income of EUR 46.7 billion represented 75% of total income, up from EUR 43.3 billion in 2023, driven by higher interest rates and active margin management. Net fee income of EUR 13.0 billion increased 7% in constant euros, reflecting strong performance in wealth management, payments, and retail banking. Gains on financial transactions were EUR 1.4 billion, up 59.9% from 2023 due to higher customer activity in Global Markets. The net interest margin was supported by the interest rate environment, though pressure from deposit competition and rate cuts in Argentina and Europe began to emerge in H2 2024. Operating expenses totaled EUR 26.0 billion, yielding an efficiency ratio of 41.8% — a 2.3 percentage point improvement from 44.1% in 2023. This improvement reflects the ONE Santander transformation, which reduced duplication across national operations and automated back-office processes. The group reduced headcount by approximately 6,000 employees from 212,764 in 2023 to 206,753 in 2024, a 2.8% decrease, through digital automation and branch consolidation. Loan impairment charges were EUR 7.2 billion, or a cost of risk of 1.15%, within the 2024 target of approximately 1.2%. The NPL ratio improved to 3.05% from 3.14% in 2023, with NPL coverage of 64.8%. Profit before tax reached EUR 19.0 billion, up 14% from EUR 16.7 billion in 2023. The tax charge of EUR 5.3 billion represented an effective tax rate of 27.8%, reflecting the geographic mix of profits and local tax regimes. Return on tangible equity was 16.3% in FY2024, up from 15.1% in 2023, driven by higher profitability and disciplined capital management. Return on equity was 13.0%. Earnings per share increased to EUR 0.77 from EUR 0.65, supporting a total dividend of EUR 0.50 per share and EUR 2.5 billion in share buybacks. The group's balance sheet remained robust: total assets of EUR 1.84 trillion, net loans to customers of EUR 1.05 trillion, and customer deposits of EUR 1.06 trillion. The loan-to-deposit ratio was 100%, providing a stable funding base. Risk-weighted assets totaled EUR 630 billion, with a fully-loaded CET1 ratio of 12.8% — above the target of above 12% and well above the regulatory minimum. The group's total capital ratio was 17.4%, and the leverage ratio was 5.0%. Tangible net asset value per share increased to EUR 5.24 from EUR 4.76, reflecting retained earnings and buyback accretion. Capital generation pre-distributions was strong, supporting the dividend policy of distributing approximately 50% of attributable profit and the EUR 10 billion share buyback program announced for 2025-2026. The group's FY2025 half-year results accelerated this trajectory: attributable profit of EUR 6.83 billion in H1 2025 (up 13% year-over-year, 18% in constant euros), RoTE of 16.7%, and CET1 of 13.0%. The bank proposed an interim dividend and announced a share buyback program, putting it on track to meet full-year targets.