Santander beats third quarter forecasts on US growth

Core Insights - Santander anticipates achieving its higher profit targets by 2025, driven by lending growth in the U.S. and efficiency improvements, despite challenges in Brazil [1] Financial Performance - Underlying net profit in the U.S. increased by 64%, attributed to higher lending income from lower funding costs and increased fees from corporate and investment banking [2] - Net profit in Brazil decreased by 5.9% due to currency depreciation, while Argentina saw a 26% decline in net profit, primarily due to risks associated with the peso [2] - In Spain, underlying net profit fell by 10%, despite a 1.7% increase in lending income, largely due to a drop in gains on financial transactions [3] - The UK market experienced a 15% rise in net profit, aided by lower provisions, although full results were not published pending regulatory clarity [4] Revenue and Efficiency - Santander reported a 4% increase in fees and a 1% rise in revenues, positioning the bank to meet its full-year return-on-tangible-equity (ROTE) target of 16.5% and revenue target of approximately 62 billion euros [5] - The efficiency ratio improved slightly to 41.1% from 41.2%, reflecting the bank's shift towards a more digital and integrated model [6] - Net interest income fell by 1% year-on-year to 11.1 billion euros, slightly below analyst expectations [6]