Banco Santander, S.a. · BME:SAN
Banco Santander — Q1 2025 Earnings Presentation
61 slides from Banco Santander's earnings presentation, Apr 30, 2025
Slide 1: Form 6-K cover page
FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of April, 2025 Commission File Number: 001-12518 Banco Santander, S.A. (Exact name of registrant as specified in its char
Slide 2: Table of Contents
BANCO SANTANDER, S.A. ________________________ TABLE OF CONTENTS Item 1. January - March 2025 Earnings presentation
Slide 3: Q1'25 Earnings Presentation
Q1’25 Earnings Presentation 30 April 2025
Slide 4: Important information
2 Important information Non-IFRS and alternative performance measures Banco Santander, S.A. (“Santander”) cautions that this presentation may contain financial information prepared according to International Financial Reporting Standards (IFRS) and taken from our consolidated financial statements, a
Slide 5: Important information
3 Important information • exposure to market risks (e.g., risks from interest rates, foreign exchange rates, equity prices and new benchmark indices); • potential losses from early loan repayment, collateral depreciation or counterparty risk; • political instability in Spain, the UK, other European
Slide 6: Index
4 Index Q1'25 Highlights Progress on our strategy 1 Group review 2 Final remarks 3 Appendix 4
Slide 7: Ahead of all key Investor Day targets for 2025
5 We have entered the last year of our third strategic cycle well ahead in all our key Investor Day targets for 2025, that we improved alongside our Q4’24 results RoTE post-AT1Payout RWAs with RoRWA > CoECET1 Note: our current ordinary shareholder remuneration policy is to distribute approximately 5
Slide 8: Strong start to the year, all global businesses growing
6 Strong start to the year, with all global businesses growing revenue and profit Q1’25 att. profitQ1’25 revenue Efficiency RoTE post-AT1 CoR CET1 TNAVps + Cash DPS YoY €3.4bn€15.5bn 41.8% 1.14% 15.8% 12.9% +14.5% +19% -6bps Another record profit in Q1, with 9 million new customers YoY and good acti
Slide 9: Continuing strong operational performance driving profit growth
7 Continuing strong operational performance driving profit growth Note: underlying P&L. All references to variations in constant euros across the presentation include Argentina in current euros to mitigate distortions from a hyperinflationary economy. From Q2 2024 onwards for the Argentine peso, we
Slide 10: ONE Transformation driving revenue and costs ahead of plan
8 Consistent execution of ONE Transformation is driving both revenue and costs ahead of plan … • Wealth: collaboration fees with CIB and Corporates reached €1.1bn (+10% vs. Q1’24) • Consumer: expansion of OEM agreements • Multi-Nationals: +2% YoY revenue growth • Product simplification: 40% fewer pr
Slide 11: Supporting value creation across our global businesses
9 … supporting value creation across our 5 global businesses Note: YoY changes in constant euros. The 2024 global business series have been slightly modified. These adjustments do not affect Group results. For more information, see the Appendix and the Quarterly financial report. Contribution to Gro
Slide 12: Retail: strong YoY profit growth
10 3,141 2,983 3,077 3,337 3,113 Q1'24 Q2 Q3 Q4 Q1'25 8.2 5.0 Mar-24 Mar-25 Q1’25 FINANCIALS Note: data and YoY changes in constant euros. (1) Metrics cover all products and employees in the branch network in our 10 main countries. Retail: another quarter of strong YoY profit growth on the back of e
Slide 13: Consumer: higher loans and deposit gathering driving profit
11 • Openbank launched in Mexico and Germany. In the US, new partnership with Verizon announced to boost growth • Loans up, driven by auto. Strong deposit growth, both in DCBE and DCB US, in line with our strategy to lower funding costs • Profit increased supported by good performance in DCB US (RoT
Slide 14: CIB: improved profitability driven by fee growth
12 870 916 974 1,027 952 Q1'24 Q2 Q3 Q4 Q1'25 Note: data and YoY changes in constant euros. Q1’25 FINANCIALS KEY DRIVERS % customer related revenue Fee growth (€ bn) % Total revenue / RWAs Loans €142bn +4% Deposits €134bn -4% CoR 0.08% -6bps Efficiency 42.9% +1.3pp Profit €806mn +18% RoTE post-AT1 2
Slide 15: Wealth Management & Insurance
13 Q1’25 FINANCIALS Net sales (SAM) Net new money (PB) Gross written premiums Note: data and YoY changes in constant euros. (1) Annualized YTD net new money as a % of PB’s 2024 customer assets and liabilities (CAL). Annualized YTD net sales as a % of SAM’s 2024 AuMs. (2) Includes deposits and off-ba
Slide 16: Payments: driving revenue growth and scale
14 Note: data and YoY changes in constant euros. (1) Transactions include merchant payments, cards and electronic A2A payments. (2) Payments volume includes PagoNxt Total Payments Volume (TPV) in Getnet and Cards spending. Payments: driving revenue growth and scale through global platforms PagoNxt E
Slide 17: Improving profitability with EPS up 26%
15 14.1% 15.8% Q1'24 Q1'25 Note: TNAVps + Cash DPS includes the €10.00 cent cash dividend per share paid in November, executed as part of our shareholder remuneration policy. Improving profitability with EPS up 26% and 14.5% value creation Since 2021, including the second buyback against 2024 result
Slide 18: Index
16 Index Q1'25 Highlights Progress on our strategy 1 Group review 2 Final remarks 3 Appendix 4
Slide 19: Continuing strong operational performance driving profit growth
17 2,852 3,207 3,250 3,265 3,402 Q1'24 Q2 Q3 Q4 Q1'25 +4% Continuing strong operational performance driving profit growth Attributable profit (Constant € mn) € mn +19% +4% Profit Note: underlying P&L. All references to variations in constant euros across the presentation include Argentina in current
Slide 20: Revenue growth underpinned by stronger customer activity
18 14,828 15,216 15,186 16,106 15,537 Q1'24 Q2 Q3 Q4 Q1'25 15,537 14,828 +188 +55 +163 +129 +178 -5 Q1'24 Retail Consumer CIB Wealth Payments CC Q1'25 Revenue growth underpinned by stronger customer activity across our businesses Note: data and YoY % changes in constant euros. YoY growth TOTAL REVEN
Slide 21: Resilient NII performance
19 2.97% 2.89% 2.79% 2.92% 2.73% 11,573 11,145 11,263 12,053 11,378 Q1'24 Q2 Q3 Q4 Q1'25 Resilient NII performance, growing in most businesses excluding Argentina NIM Performance NII NET INTEREST INCOME AND NIM • >80% of Group NII is from our Retail and Consumer businesses • NII +4% YoY excluding Ar
Slide 22: Net fee income
20 3,100 3,115 3,189 3,360 3,369 Q1'24 Q2 Q3 Q4 Q1'25 • Retail: − Good commercial dynamics and customer growth (+6% YoY), resulting in generalized fee growth across our footprint − Of note, Mexico and Brazil (insurance and mutual funds) and Argentina (mutual funds, insurance and transactional) • Con
Slide 23: ONE Transformation driving structural efficiency improvements
21 6,363 6,214 6,381 6,796 6,489 CIB, WEALTH AND PAYMENTS ONE Transformation is driving further structural efficiency improvements Efficiency 12M rolling Costs Net operating income Revenue 8,465 9,003 8,805 9,310 9,048 Q1'24 Q2 Q3 Q4 Q1'25 14,828 15,216 15,186 16,106 15,537 Retail Consumer Retail an
Slide 24: Solid credit quality
22 2,949 2,984 2,989 3,142 3,161 Q1'24 Q2 Q3 Q4 Q1'25 Solid credit quality with improvement across most of our businesses Note: CoR - provisions to cover losses due to impairment of loans in the last 12 months / average customer loans and advances of the last 12 months. Data in constant euros. Stage
Slide 25: Strong organic capital generation
23 12.9 -0.27 -0.08 12.8 +0.33 +0.12 Dec-24 Organic generation Shareholder remuneration Regulatory & Models Markets & others Mar-25 2 Strong organic capital generation, with profitable front-book growth at 22% RoTE CET1 % Mar-25 or estimates Front book pricing RoRWA of new book Asset rotation and ri
Slide 26: Index
24 Index Q1'25 Highlights Progress on our strategy 1 Group review 2 Final remarks 3 Appendix 4
Slide 27: Another record quarter, on track for 2025 targets
25 Another record quarter that puts us on track to meet our 2025 targets Fees Cost base CoR CET11 RoTE post-AT1 TNAVps + Cash DPS 2025 targets Mid-high single digit growth Down vs. 2024 in euros c.1.15% 13% operating range: 12-13% c.16.5% Double-digit growth through-the-cycle c.€62bnRevenue Note: ta
Slide 28: Index
26 Index Q1'25 Highlights Progress on our strategy 1 Group review 2 Final remarks 3 Appendix 4
Slide 29: Appendix
27 Appendix Aligning financial reporting to recent changes in our management structure 2025 Investor Day targets summary Group P&L and excluding Argentina Detail by global business and country Reconciliation of underlying results to statutory results Glossary For more details, refer to the document
Slide 30: Modifications to global business perimeters
28 Modifications to global business perimeters1 Aligning financial reporting to recent changes in our management structure Dissolution of regional management structures 2 1 • Following the board of directors’ approval of the dissolution of the regional management structures, which took effect on 3rd
Slide 31: Changes to secondary segments
29 Changes to secondary segments - dissolution of regional reporting1 Spain United Kingdom Portugal Poland US Mexico Brazil Chile Argentina DCB Europe Corporate Centre Rest of the Group TOTAL GROUP EUROPE Spain United Kingdom Portugal Poland Other Europe NORTH AMERICA US Mexico Other North America S
Slide 32: Impact of modifications to global business perimeters in 2024
30 2 Impact of modifications to global business perimeters in 2024 From… …To 2024, €mn Group Retail Consumer CIB Wealth Payments Group NII 46,668 -5 0 -32 +79 -42 46,668 Fees 13,010 +26 0 0 +8 -34 13,010 Other income 2,533 -108 -4 +27 +55 +31 2,533 Total income 62,211 -87 -4 -5 +142 -45 62,211 Costs
Slide 33: Appendix
31 Appendix Aligning financial reporting to recent changes in our management structure 2025 Investor Day targets summary Group P&L and excluding Argentina Detail by global business and country Reconciliation of underlying results to statutory results Glossary
Slide 34: 2025 Investor Day targets summary
32 (1) Our current ordinary shareholder remuneration policy is to distribute c.50% of Group reported profit (excluding non-cash, non-capital ratios impact items), distributed approximately 50% in cash dividend and 50% in share buybacks. Execution of the shareholder remuneration policy is subject to
Slide 35: Appendix
33 Appendix Aligning financial reporting to recent changes in our management structure 2025 Investor Day targets summary Group P&L and excluding Argentina Detail by global business and country Reconciliation of underlying results to statutory results Glossary
Slide 36: Group P&L and excluding Argentina (YoY)
34 Group P&L and excluding Argentina (YoY) Group P&L Current Constant Current Constant € million Q1'25 Q1'24 % % % % NII 11,378 11,983 -5 -2 0 4 Net fee income 3,369 3,240 4 9 3 8 Other income 790 157 n.m. n.m. 15 16 Total revenue 15,537 15,380 1 5 1 5 Operating expenses -6,489 -6,547 -1 2 0 3 Net o
Slide 37: Group P&L QoQ variations and excluding Argentina
35 Group P&L QoQ variations and excluding Argentina Fees NII 2,968 3,073 3,197 Costs LLPs Revenue 2,914 2,986 3,085 Q1'24 Q2 Q3 Q4 Q1'25 14,273 15,059 15,033 10,548 10,946 10,962 -0% +0% +4% Constant €mn 6,078 6,380 6,266 -2% Group excl. ArgentinaGroupQ1’25 vs. Q4’24 Group quarterly performance excl
Slide 38: Appendix
36 Appendix Aligning financial reporting to recent changes in our management structure 2025 Investor Day targets summary Group P&L and excluding Argentina Detail by global business and country Reconciliation of underlying results to statutory results Glossary
Slide 39: Detail by global business
37 Detail by global business
Slide 40: Retail & Commercial Banking
38 KEY DATA Retail & Commercial Banking Note: Mar-25 data and YoY changes (loans, deposits and mutual funds in constant euros). (2) YoY attributable profit growth if we accrue the 2024 temporary levy on revenue earned in Spain, in line with the criteria used for the banking tax in Spain in 2025. P&L
Slide 41: Retail Spain and Retail UK
39 RETAIL SPAIN Note: Mar-25 data and YoY changes (loans, deposits and mutual funds in constant euros). RETAIL UK Underlying P&L* Q1'25 % Q4'24 % Q1'24 NII 1,467 2.6 -0.4 Net fee income 291 19.0 2.9 Total revenue 1,794 7.2 0.8 Operating expenses -571 -5.0 0.7 Net operating income 1,223 14.1 0.8 LLPs
Slide 42: Retail Mexico and Retail Brazil
40Note: Mar-25 data and YoY changes (loans, deposits and mutual funds in constant euros). RETAIL MEXICO RETAIL BRAZIL Underlying P&L* Q1'25 % Q4'24 % Q1'24 % Q1'24¹ NII 756 -0.4 7.6 -7.6 Net fee income 171 10.0 13.9 -2.2 Total revenue 896 0.9 7.7 -7.5 Operating expenses -397 -13.6 7.1 -8.1 Net opera
Slide 43: Digital Consumer Bank
41 KEY DATA Digital Consumer Bank Note: Mar-25 data and YoY changes (new lending, loans and deposits in constant euros). P&L HIGHLIGHTS Underlying P&L* Q1'25 % Q4'24 % Q1'24 % Q1'24¹ NII 2,756 -2.2 1.8 1.7 Net fee income 339 -14.3 -2.7 -4.2 Total revenue 3,234 -3.6 1.7 1.6 Operating expenses -1,357
Slide 44: DCB Europe and DCB US
42Note: Mar-25 data and YoY changes (loans, deposits and mutual funds in constant euros). DCB Europe DCB US Underlying P&L* Q1'25 % Q4'24 % Q1'24 % Q1'24¹ NII 1,221 1.1 3.6 6.8 Net fee income 84 -14.0 27.2 31.2 Total revenue 1,362 -1.3 1.2 4.4 Operating expenses -574 4.5 2.1 5.3 Net operating income
Slide 45: Corporate & Investment Banking
43 KEY DATA Corporate & Investment Banking Note: Mar-25 data and YoY changes (loans, deposits in constant euros). P&L HIGHLIGHTS Loans €142bn +4% Deposits €134bn -4% CoR 0.08% -6bps Efficiency 42.9% +1.3pp RoTE post-AT1 21.6% +3.1pp • Good progress in our strategy focused on fee and capital-light bu
Slide 46: Wealth Management & Insurance
44 Wealth Management & Insurance P&L HIGHLIGHTS Underlying P&L* Q1'25 % Q4'24 % Q1'24 % Q1'24¹ NII 375 -8.5 -16.1 -16.3 Net fee income 419 2.5 16.5 14.8 Total revenue 1,019 -1.1 14.5 12.6 Operating expenses -372 -11.0 9.9 8.5 Net operating income 647 5.7 17.3 15.2 LLPs -8 -58.4 97.3 99.7 Attributabl
Slide 47: Payments
45 • 106 million cards managed across the Group, with solid customer activity (spending +7% and average balance +15%) • NOI +19% YoY, driven by double-digit revenue growth YoY and cost control. Profit affected by LLPs, due to volumes, and model updates in Brazil (macro and regulatory changes) and Me
Slide 48: Corporate Centre
46 Corporate Centre • NII affected by the lower interest rates which has positive sensitivity to rate hikes • Losses on financial transactions improved, due to a lower impact from foreign currency hedges • Costs remained flat compared to Q1 2024, driven by ongoing simplification measures • Higher LL
Slide 49: Detail by country
47 Detail by country
Slide 50: Spain and UK
48 Spain and UK Note: Mar-25 data and YoY changes (loans, deposits and mutual funds in constant euros). (1) YoY attributable profit growth if we accrue the 2024 temporary levy on revenue earned in Spain, in line with the criteria used for the banking tax in Spain in 2025. SPAIN UK Underlying P&L* Q1
Slide 51: Portugal and Poland
49Note: Mar-25 data and YoY changes (loans, deposits and mutual funds in constant euros). Negative CoR indicates net releases. PORTUGAL POLAND Underlying P&L* Q1'25 % Q4'24 % Q1'24 NII 348 4.8 -19.2 Net fee income 126 13.9 -1.2 Total revenue 503 9.7 -13.9 Operating expenses -136 -5.2 1.4 Net operati
Slide 52: US and Mexico
50Note: Mar-25 data and YoY changes (loans, deposits and mutual funds in constant euros). US RoTE post-AT1 adjusted based on Group’s deployed capital calculated as contribution of RWAs at 12%, is 14.5%. US MEXICO Underlying P&L* Q1'25 % Q4'24 % Q1'24 % Q1'24¹ NII 1,129 3.5 8.4 -7.0 Net fee income 35
Slide 53: Brazil and Chile
51Note: Mar-25 data and YoY changes (loans, deposits and mutual funds in constant euros). BRAZIL CHILE Underlying P&L* Q1'25 % Q4'24 % Q1'24 % Q1'24¹ NII 2,402 -1.5 4.5 -8.7 Net fee income 793 -7.0 7.2 -6.3 Total revenue 3,223 -2.3 5.2 -8.1 Operating expenses -1,059 -1.2 4.8 -8.4 Net operating incom
Slide 54: Argentina
52 Note: Mar-25 data and YoY changes (loans, deposits and mutual funds in current euros). (1) The exchange rate resulting from the sale of local bonds denominated in Argentine pesos in US dollars (dual denomination peso/dollar bonds). ARGENTINA • In Q2 2024, given a significant divergence between th
Slide 55: Appendix
53 Appendix Aligning financial reporting to recent changes in our management structure 2025 Investor Day targets summary Group P&L and excluding Argentina Detail by global business and country Reconciliation of underlying results to statutory results Glossary
Slide 56: Reconciliation of underlying results to statutory results
54 Reconciliation of underlying results to statutory results EUR mn (1) Includes exchange differences. Explanation of 2024 adjustments: • Temporary levy on revenue in Spain in Q1 2024, totalling EUR 335 million, which was reclassified from total income to other gains (losses) and provisions. Statuto
Slide 57: Appendix
55 Appendix Aligning financial reporting to recent changes in our management structure 2025 Investor Day targets summary Group P&L and excluding Argentina Detail by global business and country Reconciliation of underlying results to statutory results Glossary
Slide 58: Glossary - Acronyms
56 Glossary - Acronyms • A2A: account to account • AM: Asset management • AuMs: Assets under Management • bn: Billion • bps: Basis points • c.: Circa • CET1: Common equity tier 1 • CHF: Swiss franc • CF: Corporate Finance • CIB: Corporate & Investment Banking • CoE: Cost of equity • Consumer: Digita
Slide 59: Glossary - Definitions
57 Glossary - Definitions PROFITABILITY AND EFFICIENCY • RoTE (Return on tangible equity): Profit attributable to the parent (annualized)1/ Average stockholders' equity2 (excl. minority interests) - intangible assets • RoTE (post-AT1): Profit attributable to the parent minus AT1 costs (annualized)1
Slide 60: Thank You
Thank You. Our purpose is to help people and businesses prosper. Our culture is based on believing that everything we do should be:
Slide 61: Signature
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Banco Santander, S.A. Date: 30 April 2025 By: /s/ José García Cantera Name: José García Cantera Title: C