9M'25 Earnings Presentation For more details on APMs and non-IFRS measures, please see the 2024 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (the SEC) on 28 February 2025 (https://www.santander.com/content/dam/santander-com/en/documentos/informacion-sobre-resultados-semestrales-y-anuales-suministrada-a-la-sec/2025/sec-2024-annual-20-f-2024-en.pdf), as well as the section "Alternative performance measures" of Banco Santander, S.A. (Santander) Q3 2025 Financial Report, pub ...

Core Viewpoint - Santander has expressed concerns that the £11 billion car finance compensation scheme could negatively impact the economy by limiting credit availability for consumers [1][4]. Group 1: Santander's Position - Santander has urged the UK Chancellor to intervene and narrow the scope of the compensation scheme to limit the number of drivers eligible for redress [2]. - The CEO of Santander, Mike Regnier, stated that the current scheme could disproportionately harm the UK car industry and called for material changes to be considered by the government [3]. - Regnier highlighted that without changes, the scheme could lead to unintended consequences affecting the car finance market, credit supply, and ultimately jobs and economic growth [4]. Group 2: Compensation Scheme Details - The Financial Conduct Authority (FCA) announced that approximately 14.2 million drivers could be eligible for compensation, with payouts estimated at £700 each [5][7]. - The FCA's redress scheme is expected to cover about 44% of all motor finance agreements made between 2007 and 2024 [8]. - Santander had previously allocated £295 million to cover costs related to the compensation but now argues that the FCA's package exceeds the Supreme Court's ruling on the matter [6]. Group 3: Industry Response - Other banks, including Lloyds Bank, are also challenging the FCA's plans, expressing concerns that the scheme is too broad and may consider legal action [9][10]. - The FCA is currently conducting a consultation process regarding the scope of the redress scheme, which is set to launch in early 2026 [11].

Core Insights - Santander bank reported a 7.8% year-on-year increase in third-quarter net profit, reaching 3.5 billion euros ($4.08 billion), exceeding analysts' expectations of 3.39 billion euros, marking the sixth consecutive record-high quarterly result [1][2] Financial Performance - The bank experienced a 4.3% rise in fees and a 0.87% increase in revenues, which offset a 1.1% decline in lending income [2] - The tangible-equity ratio (ROTE) remained stable at 16.2%, with the bank on track to meet its target of around 16.5% for the year and a full-year revenue target of approximately 62 billion euros [2] Strategic Outlook - Executive Chair Ana Botin emphasized the importance of Santander's geographical diversification across 10 core markets in Europe and the Americas as a stabilizing factor amid global uncertainties [3] - The bank is confident in achieving its 2025 targets and continuing profitable growth despite geopolitical and market challenges [3] Regional Performance - Underlying net profit in the U.S., Santander's fifth-largest market, surged by 64%, driven by increased lending income and higher fees from corporate and investment banking [4] - The bank has benefited from higher interest rates and growth in key Latin American markets, providing a competitive edge over more Europe-dependent rivals [4] - However, Santander faced challenges from currency depreciations in emerging markets, particularly in Brazil, where the real's devaluation led to a 5.9% decline in underlying net profit for the quarter [4]

Core Viewpoint - Santander UK has opted not to release its third-quarter results as it seeks clarity on proposals from the UK financial regulator regarding motor finance mis-selling [1] Company Summary - The decision to withhold third-quarter results indicates a cautious approach by Santander UK in response to regulatory uncertainties [1]

Core Insights - Santander Bank Polska reported a better-than-expected net profit in the third quarter, driven by growth in net interest income and net fee and commission income [1] Financial Performance - The bank's net profit exceeded expectations for the third quarter [1] - Growth in net interest income contributed positively to the financial results [1] - An increase in net fee and commission income also supported the overall profit growth [1]

Core Insights - The company's net profit exceeded analysts' expectations, indicating strong financial performance [1] - There was an 8% increase in net profit compared to the same quarter last year, reflecting positive year-over-year growth [1]

Core Insights - Adidas's North America sales experienced the weakest growth compared to other regions in the third quarter [1] Company Performance - The report indicates that North America is lagging behind in sales growth among Adidas's global markets [1]

Core Insights - Santander's net profit in Q3 increased by 7.8% compared to the same period in 2024, driven by higher fees and lower loan loss provisions, despite a decline in lending income [1] Financial Performance - The net profit growth of 7.8% indicates strong financial performance for Santander in the third quarter [1] - The increase in fees and reduction in loan loss provisions were significant factors contributing to the profit rise [1] - There was a noted decline in lending income, which was offset by the aforementioned factors [1]

Core Viewpoint - Sanofi has successfully priced a $3 billion offering of notes across five tranches, intending to use the net proceeds for general corporate purposes [1] Group 1: Offering Details - The offering consists of $400 million fixed rate notes due November 2027 at an interest rate of 3.75% [6] - It includes $500 million floating rate notes due November 2027, bearing interest at compounded SOFR plus 0.46% [6] - Additionally, there are $400 million fixed rate notes due November 2028 at an interest rate of 3.80% [6] - The offering also features $500 million floating rate notes due November 2028, with interest at compounded SOFR plus 0.54% [6] - Lastly, $1,200 million fixed rate notes due November 2032 are included, bearing an interest rate of 4.20% [6] Group 2: Underwriters - Barclays Capital Inc., BNP Paribas Securities Corp., and BofA Securities, Inc. acted as Global Coordinators for the offering [2] - The Joint Book-Running Managers include Barclays Capital Inc., BNP Paribas Securities Corp., BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., and Natixis Securities Americas LLC [2] Group 3: Company Overview - Sanofi is an R&D driven, AI-powered biopharma company focused on improving lives and delivering growth through innovative medicines and vaccines [3] - The company aims to address urgent healthcare, environmental, and societal challenges, guided by a commitment to scientific progress [3] - Sanofi is listed on EURONEXT: SAN and NASDAQ: SNY, indicating its presence in major financial markets [4]

Core Viewpoint - The article compares Banco Santander (SAN) and Toronto-Dominion Bank (TD) to determine which stock is more attractive to value investors, highlighting that SAN currently shows stronger potential based on various valuation metrics [1][3]. Valuation Metrics - Banco Santander has a forward P/E ratio of 9.64, while Toronto-Dominion Bank has a forward P/E of 13.78, indicating that SAN is potentially undervalued compared to TD [5]. - The PEG ratio for SAN is 0.66, suggesting a favorable valuation relative to its expected earnings growth, whereas TD's PEG ratio is 1.66, indicating a higher valuation relative to growth expectations [5]. - SAN's P/B ratio is 1.17, compared to TD's P/B of 1.66, further supporting the notion that SAN is undervalued [6]. Earnings Outlook - SAN is currently experiencing an improving earnings outlook, which contributes to its strong Zacks Rank of 1 (Strong Buy), while TD holds a Zacks Rank of 2 (Buy) [3][7].