Financial Data and Key Metrics Changes - The company reported a record quarterly profit, achieving EUR 14.1 billion in 2025, with a year-over-year profit increase of 12%, and 15% excluding Argentina [1][2] - Revenue grew by 4% in constant euros, with fee income up 9% in constant euros, while expenses decreased by 1% in absolute terms [2] - The cost of risk ended the year at 1.15%, aligning with guidance for 2025, and the return on tangible equity (ROTE) increased from 8.1% to 16.3% [1][2][9] Business Line Data and Key Metrics Changes - The Corporate and Investment Banking (CIB), Wealth, and Payments segments experienced strong revenue growth, driven by fee increases and network effects [3][8] - The consumer business saw net interest income (NII) rise by 5% year-on-year, while group NII, excluding Argentina, grew by 3% [3][6] - Wealth profit increased by 27% in 2025, supported by strong commercial activity and double-digit fee growth [8] Market Data and Key Metrics Changes - The customer base grew by 8 million to 180 million, indicating strong customer activity across all business lines [1] - The company maintained a fully loaded CET1 ratio of 13.5%, well above the target range of 12-13% [10][28] Company Strategy and Development Direction - The company is focused on "One Transformation," aiming to simplify products and improve efficiency, which has resulted in a cost-to-income ratio of 39% [5][6] - The acquisition of Webster is expected to enhance the U.S. operations, aiming for an ROTCE of 18% by 2028, and is seen as a strategic move to strengthen the retail and commercial banking presence in the U.S. [14][18][29] - The company plans to maintain a commitment to at least EUR 10 billion in share buybacks for 2025 and 2026, while also pursuing bolt-on acquisitions [9][28] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the U.S. market, highlighting its attractiveness and potential for growth, with expectations of achieving a ROTE in excess of 20% by 2028 [30][31] - The integration of TSB and Webster is expected to provide significant operational synergies and enhance profitability [31][32] - The company anticipates mid-single-digit revenue growth in 2026, with double-digit growth including M&A, and profits expected to rise in constant euros [32][60] Other Important Information - The company completed the disposal of Santander Polska, generating around 95 basis points of capital, which will be used for share buybacks and acquisitions [10][11] - The integration of Webster is projected to yield approximately $800 million in cost synergies, with a focus on operational efficiencies and technology integration [23][39] Q&A Session Summary Question: Can you provide more details on the $800 million cost synergies? - Management explained that the synergies are derived from significant overhead reductions and technology integrations, with a focus on eliminating duplicative structures [35][38] Question: What is the rationale behind the 15% ROIC target? - Management stated that the target aligns with the company's capital hierarchy and reflects a consistent approach to shareholder value creation [41][42] Question: How does the acquisition of Webster change the strategy in the U.S. market? - The acquisition allows the company to operate as a full-service retail commercial bank in the Northeast, enhancing its competitive position and profitability [46][48] Question: What are the expected impacts from the Polish sale and TSB integration? - Management indicated that the sale of Poland and the integration of TSB will lead to improved profitability and operational leverage in 2027 [60][61] Question: Are new shares being issued for the Webster acquisition? - Yes, 35% of the acquisition consideration will be paid in new shares, while a share buyback program is also being initiated [61][62]

Financial Data and Key Metrics Changes - Banco Santander reported a record annual profit of EUR 14.1 billion for 2025, representing a 12% year-over-year increase, and a 15% increase excluding Argentina [3][4] - The annual dividend per share grew by 14%, and earnings per share rose by 17% due to solid profit generation and a lower share count following buybacks [4][12] - The CET1 ratio increased by 70 basis points to an all-time high of 13.5%, reflecting strong organic capital generation [4][13] Business Line Data and Key Metrics Changes - The Consumer business saw a net interest income (NII) increase of 5% year-on-year, while overall group NII performance, excluding Argentina, grew by 3% [5][9] - Wealth profit increased by 27% in 2025, driven by strong commercial activity and double-digit fee growth [11] - Payments volume rose by 9%, with PagoNxt EBITDA margin closing above 34% [11] Market Data and Key Metrics Changes - The customer base grew by 8 million to 180 million, indicating strong customer acquisition across all markets [3] - The retail profit grew by 9% year-on-year, with a cost-to-income ratio of 39% [8][9] - The U.S. market showed significant growth, with profits increasing by over 30% from 2023 to 2025, and the U.S. ROTE reaching 15% [16][46] Company Strategy and Development Direction - The acquisition of Webster Financial Corporation is a strategic move to enhance Santander's U.S. operations, aiming for a ROTE of 18% by 2028 [2][18] - The company is focused on a "One Transformation" strategy to simplify products and improve operational efficiency, which has already resulted in a 41% efficiency ratio [3][6] - The integration of Webster is expected to deliver approximately $800 million in cost synergies, enhancing the overall profitability and efficiency of the combined entity [21][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the U.S. market's potential, highlighting its attractive risk-return profile and growth opportunities [33] - The company anticipates achieving a ROTE in excess of 20% by 2028, supported by ongoing strategic initiatives and acquisitions [34] - The outlook for 2026 includes mid-single-digit revenue growth in constant EUR, with double-digit growth expected when including M&A [35] Other Important Information - The board approved a new buyback program of up to EUR 5 billion, with EUR 3.2 billion generated from the sale of Poland [13][31] - The acquisition of Webster is expected to close before the end of 2026, with a significant focus on integrating operations and realizing synergies [20][22] Q&A Session Questions and Answers Question: Can you provide more details on the EUR 800 million cost synergies? - Management explained that the synergies are derived from significant overhead reductions and technology integrations, with a focus on eliminating duplicative structures [41][42] Question: Why is the expected ROIC set at 15%? - The rationale for the 15% ROIC is consistent with the company's capital hierarchy, and management highlighted the U.S. market's strong performance in value creation over the past five years [45][46] Question: What has changed regarding the West Coast market? - Management clarified that the acquisition of Webster allows Santander to operate as a full-service retail commercial bank in the Northeast, which was not feasible previously [50][51] Question: What are the implications of issuing new shares for the Webster acquisition? - The company will issue new shares for 35% of the acquisition consideration, while also launching a EUR 5 billion share buyback program [66][67]

Financial Data and Key Metrics Changes - The company reported a record quarterly profit of EUR 14.1 billion for 2025, marking a 12% year-over-year increase in profits, and 15% excluding Argentina [1][2] - The return on tangible equity (ROTE) increased from 8.1% to 16.3%, with a cost-to-income ratio of 39% [1][5] - The fully loaded CET1 ratio rose by 70 basis points to 13.5%, exceeding the target range of 12-13% [10][28] Business Line Data and Key Metrics Changes - The Corporate and Investment Banking (CIB), Wealth, and Payments segments experienced strong revenue growth, with Wealth profit up 27% and Payments volume increasing by 9% [3][8] - The retail business saw a profit increase of 9% year-on-year, with a reduction in cost-to-serve by around 4% [5][6] - The consumer business reported a net interest income (NII) growth of 5% year-on-year, while overall group NII, excluding Argentina, grew by 3% [3][6] Market Data and Key Metrics Changes - The customer base grew by 8 million to 180 million, reflecting strong customer activity across all business lines [1] - The company maintained a prudent approach to risk, with a cost of risk ending the year at 1.15% [2] Company Strategy and Development Direction - The company is focused on "One Transformation," aiming to simplify products and improve operational efficiency [1][4] - The acquisition of Webster is expected to enhance the U.S. operations, aiming for an ROTE of 18% by 2028, and is seen as a strategic move to strengthen the retail and commercial banking presence in the U.S. [11][18] - The company plans to maintain a commitment to at least EUR 10 billion in share buybacks for 2025 and 2026 [9][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the U.S. market, highlighting its attractiveness and potential for growth, with expectations of achieving a ROTE in excess of 20% by 2028 [31][32] - The integration of TSB and Webster is expected to provide significant operational leverage and enhance profitability [32][64] Other Important Information - The company completed the disposal of Santander Polska, generating around 95 basis points of capital, which will be used for share buybacks and acquisitions [10][28] - The integration of Santander Consumer Finance and Open Bank into a single entity is aimed at simplifying the structure and enhancing customer experience [7] Q&A Session Summary Question: Can you provide more details on the $800 million cost synergies? - Management explained that the $800 million in synergies includes $480 million from headquarters and overheads, and $280 million from technology integrations, emphasizing the significant duplication in operations [36][39] Question: Why is the expected ROIC set at 15%? - Management stated that the 15% ROIC aligns with the company's capital hierarchy and reflects the current market conditions, emphasizing the U.S. market's strong performance over the past five years [37][43] Question: What has changed regarding the West Coast market? - Management clarified that the acquisition of Webster allows Santander to operate as a full-service retail commercial bank in the Northeast, which was not feasible previously [46][50] Question: What are the expected impacts from the Polish sale and TSB integration? - Management indicated that 2027 would be a clean year for assessing the full benefits of both TSB and Poland, with expectations of double-digit revenue growth and mid-teens profit increases [61][63] Question: Will new shares be issued for the Webster acquisition? - Management confirmed that 35% of the acquisition consideration will be paid in new shares, with a share buyback program also in place [64][65]

FY'25 Earnings Presentation Acquisition of Webster 3 February 2026 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, as well as alternative performance measures (APMs) as defined in the Guidelines on Alternative Performance Measures issued by the European Securitie ...

FY'25 Earnings Presentation Acquisition of Webster 3 February 2026 Important information Forward-looking statements Santander hereby warns that this presentation may contain 'forward-looking statements', as defined by the US Private Securities Litigation Reform Act of 1995. Such statements can be understood through words and expressions like 'expect', 'project', 'anticipate', 'should', 'intend', 'probability', 'risk', 'VaR', 'RoRAC', 'RoRWA', 'TNAV', 'target', 'goal', 'objective', 'estimate', 'future', 'amb ...

Group 1 - The core point of the article is that Santander Bank has approved a new stock buyback plan worth €5 billion [1] Group 2 - The buyback plan is aimed at enhancing shareholder value and reflects the bank's strong financial position [1] - This initiative indicates the bank's confidence in its future growth prospects and overall market conditions [1] - The approval of the buyback plan is part of Santander's ongoing strategy to return capital to shareholders [1]

Banco Santander is buying Webster Financial, the holding company for Webster Bank, in a cash-and-stock transaction valued at $12.3 billion. ...

Spain's Santander said on Tuesday it will buy U.S. regional lender Webster Financial in a $12.2 billion deal. ...

STAMFORD, Conn.--(BUSINESS WIRE)--Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., today announced the signing of a definitive agreement under which Banco Santander, S.A. ("Santander†) (NYSE: SAN, Madrid: SAN) will acquire Webster in a cash-and-stock transaction. Under the terms of the agreement, Webster stockholders will receive $48.75 in cash and 2.0548 Santander American Depository Shares for each Webster common share. Based on Santander's closing stock. ...

Banco Santander (SAN) is set to release its quarterly earnings on February 4, 2026, with an estimated earnings per share of $0.25 and projected revenue of $15.7 billion.The company shows a strong net margin of 17.9%, a return on equity of 11.68%, and a return on assets of 0.70%, indicating efficient operations compared to its competitors.Despite a high debt-to-equity ratio of 3.13, SAN's earnings yield of 8.28% suggests a favorable return on investment, though liquidity concerns arise with a current ratio o ...