Financial Data and Key Metrics Changes - The quarterly profit reached a record €3.5 billion, marking the best nine-month period ever, with a customer base increase of 7 million year on year to 178 million [4][5] - Return on Invested Capital (ROIC) increased by 70 basis points to 16.1%, with a capital ratio at an all-time high of 13.1% [4][20] - Earnings per share rose by 16%, supported by solid profit generation and fewer shares due to buybacks, leading to a 15% increase in TNF plus cash dividend per share [20][34] Business Line Data and Key Metrics Changes - Net Interest Income (NII) increased by 2%, with fees reaching a new record, up 8%, driven by significant customer growth [6][7] - Consumer business saw NII growth of 6% year on year, while retail NII, excluding Argentina, grew by 1% [9][11] - Corporate and Investment Banking (CIB) reported a profit increase of 10% year on year, with revenue in global markets rising by 27% [15][16] Market Data and Key Metrics Changes - Payments revenue surged by 19%, with both PagoNext and cards delivering double-digit growth in NII and fees [24][19] - Wealth management revenue rose by 13%, supported by record assets under management [24] - The consumer segment showed strong performance, benefiting from lower rates and a focus on profitability [14][24] Company Strategy and Development Direction - The company is on track to meet its 2023-2025 strategic plan, with a focus on profitability and disciplined capital allocation [5][34] - The transformation strategy aims to simplify operations and enhance customer experience, with a significant rollout of global platforms [10][12] - The integration of Santander Consumer Finance and Openbank in Europe is expected to reduce costs and improve product offerings [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 targets despite a challenging environment, citing strong business dynamics and disciplined capital allocation [34][35] - The outlook for 2026 is promising, with expectations of improved credit quality and stable cost of risk [41][66] - The company anticipates a stable NII outlook in Brazil as interest rates are expected to decrease, positively impacting margins [66][67] Other Important Information - The company plans to distribute at least €10 billion to shareholders through share buybacks for 2025-2026, subject to regulatory approvals [5][20] - The CET1 capital ratio is expected to increase further in Q4, with regulatory headwinds being less than initially anticipated [49][50] Q&A Session Summary Question: What are the main drivers for achieving the ROIC target of 16.5%? - Management expects strong performance in Q4 driven by seasonality, higher fees, and execution of the transformation strategy [38][39] Question: How should we think about credit quality in Brazil? - Management noted a small improvement in credit quality, with stable provisions and expectations for a better macro environment [43][45] Question: What is the outlook for capital and regulatory headwinds? - Regulatory charges are expected to be lower than anticipated, with capital generation projected to increase in Q4 [49][50] Question: Can you provide an update on NII in Spain? - NII in Spain improved, with expectations for continued growth in Q4 and a positive outlook for 2026 [53][54] Question: What is the status of litigation provisions? - Management does not expect the net impact of litigation provisions to be material for the group [63][64] Question: What is the NII outlook in Brazil? - Management expects stable NII in Brazil with improved margins as interest rates decrease [66][67]

Financial Data and Key Metrics Changes - Quarterly profit reached a record EUR 3.5 billion, marking the best nine-month period ever, with a customer base increase of EUR 7 million year-on-year to EUR 178 million [4][5] - Return on Invested Capital (ROIC) increased by 70 basis points to 16.1%, with a strong capital ratio of 13.1% [4][5][20] - Earnings per share rose by 16%, supported by solid profit generation and share buybacks, leading to a 15% increase in TNF plus cash dividend per share [20][21] Business Line Data and Key Metrics Changes - Net Interest Income (NII) grew by 2%, while fees reached a new record, increasing by 8% [6][7] - Consumer business NII increased by 6% year-on-year, with retail NII growing by 1% excluding Argentina [9][11] - Payments revenue surged by 19%, with double-digit growth in both PagoNxt and cards [24][19] Market Data and Key Metrics Changes - CIB (Corporate and Investment Banking) revenue rose by 6% year-on-year, driven by global markets and growth initiatives in the U.S. [24][16] - Wealth management revenue increased by 13%, supported by record assets under management [24][18] - Retail revenue grew even in a less favorable interest rate environment, aided by active margin management [24][11] Company Strategy and Development Direction - The company is on track to meet its 2023/2025 strategic plan targets, with a focus on profitability and disciplined capital allocation [5][34] - The transformation strategy aims to simplify operations and enhance customer experience, with a significant emphasis on digitalization [10][12] - The integration of Santander Consumer Finance and Openbank in Europe is expected to reduce costs and improve product offerings [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 targets despite a challenging environment, citing strong business dynamics and revenue growth [34][35] - The outlook for 2026 is promising, with expectations of continued improvement in ROIC and profitability [39][41] - Credit quality is improving, with a stable cost of risk and a low NPL ratio of 2.92% [30][31] Other Important Information - The company plans to distribute at least EUR 10 billion to shareholders through share buybacks for 2025/2026, subject to regulatory approvals [5][20] - The CET1 capital ratio is expected to increase further in Q4, with regulatory headwinds being lower than initially anticipated [50] Q&A Session Summary Question: What are the main drivers for achieving the ROIC target of 16.5%? - Management expects strong performance in Q4 driven by seasonality, higher fees, and execution of the transformation strategy [38] Question: How should we think about credit quality in Brazil? - Credit quality is improving, with a stable cost of risk and a reduction in loan loss provisions [43][45] Question: Can you provide an update on capital and regulatory headwinds? - Regulatory charges are expected to be lower than anticipated, with capital generation projected to increase in Q4 [49][50] Question: What is the outlook for NII in Spain? - NII in Spain has improved, with expectations for continued growth in Q4 and a positive outlook for 2026 [53][54] Question: What is the status of litigation provisions? - The impact of litigation provisions is not expected to be material for the group, with ongoing reviews of the U.K. Motor Finance situation [63][64] Question: How does the company view NII outlook in Brazil? - The company anticipates stable NII in Brazil as interest rates are expected to come down, improving margins [65][66]

Financial Data and Key Metrics Changes - The quarterly profit reached a record €3.5 billion, marking the best nine-month period ever for the company [3] - Return on Invested Capital (ROIC) increased by 70 basis points to 16.1% [3] - The capital ratio ended the quarter at an all-time high of 13.1% [3][30] - Earnings per share rose by 16%, supported by solid profit generation and fewer shares due to buybacks [19] Business Line Data and Key Metrics Changes - Revenue grew by 4% in euros, with Net Interest Income (NII) increasing by 2% and fees rising by 8% [5] - Corporate and Investment Banking (CIB) revenue rose by 6%, driven by global markets and growth initiatives in the U.S. [23] - Wealth management revenue increased by 13%, supported by record assets under management [23] - Payments revenue surged by 19%, with both PagoNext and cards delivering double-digit growth [23][18] Market Data and Key Metrics Changes - The company added 7 million new customers year on year, bringing the total to 178 million [3] - Customer activity and diversification continued to drive revenue growth, particularly in fee-driven businesses [7] - The cost of risk improved year on year, reflecting robust credit quality trends [5][28] Company Strategy and Development Direction - The company is on track to meet its 2023-2025 strategic plan targets, focusing on profitability and disciplined capital allocation [4] - The transformation strategy aims to simplify operations and enhance customer experience, with a focus on digitalization [9][11] - The integration of Santander Consumer Finance and Openbank in Europe is expected to reduce costs and improve product offerings [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 targets despite a more challenging environment than initially anticipated [32] - The outlook for 2026 is promising, with expectations of improved credit quality and stable cost of risk [40][42] - The company anticipates a stable cost of risk in Brazil, supported by resilient labor markets [42][64] Other Important Information - The company plans to distribute at least €10 billion to shareholders through share buybacks for 2025-2026, subject to regulatory approvals [4][19] - The efficiency ratio improved to 41.3%, the best reported in over 15 years [28] Q&A Session Summary Question: ROIC target for the year of 16.5% - Management expects strong performance in Q4 driven by seasonality, higher fees, and execution of One Transformation [37] Question: Credit quality in Brazil - Provisions have decreased, and management expects stable cost of risk due to improved credit quality [41][43] Question: Capital guidance and regulatory headwinds - Regulatory charges are expected to be lower than initially anticipated, with a CET1 ratio projected to increase further in Q4 [48][49] Question: NII outlook in Spain - NII in Spain improved, with expectations for continued growth in Q4 and 2026 [51][52] Question: Litigation provisions - The impact of litigation provisions is not expected to be material for the group [60][62] Question: NII outlook in Brazil - Management expects stable NII with improved margins as interest rates decline [64][65]

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]