Banco Santander announced record profits for the fourth quarter of 2024 and revealed plans for a significant share buyback program. The bank's strong performance was driven by increased customer activity, effective margin management, and growth in its core retail banking operations. Santander also provided guidance for 2025, projecting continued growth in profitability and revenue stability.
Banco Santander reported record profit in the fourth quarter of 2024 and announced ambitious plans for share buyback s totaling 10 billion euros ($10.4 billion) from 2025 and 2026 earnings. This announcement comes as the lender anticipates generating excess capital. Santander attributed its strong performance to a surge in customer activity, effective margin management, and growth across all its operations, particularly in its core retail banking segment.
The bank added eight million new customers in 2024, bringing its total customer base to 173 million. Santander's return on tangible equity (RoTE), a key profitability metric, climbed to 16.3% in 2024 from 15.1% in the previous year. Like many European lenders, Santander has benefited from the post-Covid-19 environment characterized by high interest rates. However, the bank is preparing for the potential loss of this support as the European Central Bank gradually eases its monetary policy. For 2025, Santander has set ambitious targets, aiming for approximately 62 billion euros in revenue, mid-high single-digit growth in net income, an RoTE exceeding 17%, and a CET1 ratio of 13%, demonstrating its resilience. In 2024, Santander achieved a CET1 ratio of 12.8%.Executive Chair Ana Botín expressed optimism about the bank's future, stating, 'We have announced record results for the third consecutive year as we continue to grow revenue, profitability and returns.' She highlighted Santander's scale and its ability to develop its own technology platforms, allowing for cost reductions and improved operating leverage. Botín emphasized the bank's strong track record in navigating challenging markets and its expectation to further increase profitability in 2025, while maintaining stable revenue and reducing costs. She concluded by asserting that Santander is 'only scratching the surface of its potential.
BANKING PROFIT SHARE BUYBACK SANTANDER FINANCE BANKING INDUSTRY EUROPEAN CENTRAL BANK INTEREST RATES ECONOMIC OUTLOOK TECHNOLOGY
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