Banco Santander, S.A. (BNC) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, all, and welcome to the Santander Q1 2025 results call. We entered the last year of our strategic cycle well ahead of our plan, focused on disciplining capital allocation, which is further improving our profitability to 15.8% post-81s and our C81 ratio to 12.9%, with 87% of RWA generating returns above our cost of equity. Given our solid progress building capital, our diversified earnings, and improving profitability, we reiterate our target to distribute up to $10 billion to our shareholders through share buybacks for 2025-2026, subject to regulatory approvals. Remember that we no longer set a maximum price for our buybacks, reflecting our confidence on the group's potential in terms of profitability and value creation. Q1 was another record quarter for Santander, demonstrating the strength of our strategy and the resilience of our business model. Profit reached a new record of 3.4 billion, 19% higher than Q124, with all of our businesses growing. On the back of our solid franchise of 175 million customers, that continues to grow as we improve our customer experience, leveraging our global platforms. We achieved this as we continue to invest for the future through one transformation and making excellent progress towards a simpler and more integrated model. This has helped us to improve our efficiency by around 1 point and increase our ROTE by almost 2 points to 15.8%. Our balance sheet remains solid with a strong CET1 capital ratio, which ended the quarter with another all-time high of 12.9% towards the top end of our 12 to 13 operating range. All this contributed to the strong shareholder value creation, with TINA plus dividend per share growing 14.5%, despite the depreciation of sub-currencies, Expenses grew below revenue and inflation, showcasing th...