Santander shares jump 7% after lender announces record quarterly profit, 10-billion-euro buyback

Core Viewpoint - Banco Santander reported record profits for the fourth quarter and announced a share buyback plan of 10 billion euros ($10.4 billion) for 2025 and 2026, reflecting strong financial performance and anticipated excess capital [1]. Financial Performance - The bank's net profit increased by 11% year-on-year to 3.265 billion euros in Q4 and by 14% annually to 12.574 billion euros for the full year, driven by increased customer activity and robust margin management [2]. - The return on tangible equity (RoTE) rose to 16.3% in 2024 from 15.1% the previous year, indicating improved profitability [3]. Customer Growth and Market Position - Santander added eight million new customers in 2024, bringing the total to 173 million, showcasing its growth in the core retail business [2]. - The bank has benefited from the high interest rate environment post-Covid-19, although it may face challenges as the European Central Bank eases monetary policy [4]. Future Guidance - For 2025, Santander targets approximately 62 billion euros in revenue, mid-high single-digit growth in net income, a RoTE above 17%, and a CET1 ratio of 13%, up from 12.8% in 2024 [4]. - The Executive Chair emphasized the bank's ability to grow revenue, profitability, and returns, highlighting its technological capabilities to reduce costs and improve operating leverage [5][6].