Numbers record for Banco SantanderThe Spanish banking giant closed 2024 with a record net profit of 12,57 billion euros, an increase of 14% compared to the previous year. The performance of the fourth quarter has surprised analysts, with a net profit of 3,27 billion euros (+11%), higher than Reuters estimates which predicted 2,93 billion.
The Group has benefited rising interest rates and its geographical diversification, with strong growth in key markets such as Spain and Brazil. The result confirms Santander's winning strategy, which for the third consecutive year has posted record profits.
“We have announced record results for the third consecutive year as we continue to grow revenue, profitability and returns,” said Executive Chairman Ana Botin.
10 billion euro buyback plan
In addition to the positive numbers, Santander announced a ambitious share buyback plan for a total of 10 billion of euros between 2025 and 2026, adding a further buyback of 1,6 billion euros based on 2024 earnings. The buyback program, together with the standard dividend distribution, aims to Strengthen shareholder value and to consolidate the bank's financial strength.
Growth and capital strength
In 2024, i Client funds grew by 4% in constant euros, with deposits increasing by 2%, driven by the continued expansion of the customer base. total number of customers reached 173 million, with an increase of eight million in one year. The RoTE also stood at 16,3%, while the CET1 ratio reached 12,8%, exceeding analysts' expectations.
The bank attributed this growth to solid capital generation and asset rotation strategies, combined with careful risk management. Net banking product reached 46,67 billion euros, marking an increase of 8% compared to 2023.
Stock Market Rally: Santander Pushes Up Ibex 35
The announcement of record earnings and a buyback plan has sparked a strong positive reaction on the stock market. In Madrid, the Santander title rose 6,8%, touching Highs since 2018 with a peak of 8,5% in the initial phase of the session.
Outlook for 2025
Looking to the future, Santander plans to continue to improve profitability with a RoTE target above 17% by 2025. The bank aims for a turnover growth at around 62 billion euros, with a stable increase in net fee income and more efficient cost management. In addition, the capital distribution plans to shareholders were welcomed by analysts, with Barclays calling the results “solid and better than expected”.
