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]

Financial Data and Key Metrics Changes - The quarterly profit reached a record of $3.4 billion, making H1 2025 the best first half ever for the company, driven by strong revenue growth across global businesses [5][6] - Revenue grew by 5% in constant euros, supported by a 1% increase in net interest income (NII), or 4% excluding Argentina, and record fees up nearly double digits [6][8] - The CET1 ratio ended the quarter at 13%, at the top end of the 12% to 13% operating range, with a post-AT1 return on tangible equity (RoTE) of 16% [5][50] Business Line Data and Key Metrics Changes - Retail and consumer, representing 70% of revenue, showed significant upside potential with a 3% increase in deposits and a 16% rise in digital sales [10][13] - Wealth management reported a 14% revenue growth, driven by record assets under management and strong commercial trends [33][24] - Payments experienced a 17% revenue increase, with double-digit growth in NII and fees, fueled by higher activity levels [33][27] Market Data and Key Metrics Changes - Customer activity drove revenue growth across all businesses, with double-digit growth in Wealth and Payments, and solid performance in Corporate and Investment Banking (CIB) [11][22] - The cost of risk improved year on year, with the NPL ratio falling to 2.91%, reflecting robust credit quality trends [41][42] - Retail customer deposits grew by 10% year on year, now representing 62% of total funding [20] Company Strategy and Development Direction - The company is focused on transforming into a digital bank with branches, combining technology with personalized support [12] - The ongoing transformation aims to simplify and automate processes, improving operational leverage and efficiency [9][39] - The acquisition of TSB is expected to enhance profitability and connectivity across the group, with a target RoTE increase from 11% in 2024 to 16% by 2028 [57][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year profitability targets despite a challenging environment, with expectations for revenue growth to continue [12][50] - The company anticipates stable cost of risk supported by resilient labor markets, with a focus on maintaining profitability over volume [19][52] - Management highlighted the importance of diversification in navigating challenges, with higher interest rates benefiting some retail franchises [11][12] Other Important Information - The company announced a new share buyback program of up to €1.7 billion, with plans to distribute at least €10 billion to shareholders through buybacks for 2025 and 2026 [28][47] - The transformation efforts have led to a significant reduction in operational complexity, improving customer interactions and reducing costs [13][39] Q&A Session Summary Question: NII in the UK and top-up provisions in Brazil - Management acknowledged the UK as a work in progress, focusing on profitability and margin management, with expectations for NII to be slightly up [55][56] - In Brazil, management indicated that the cost of risk is expected to normalize, with a focus on secure lending and a conservative approach to strengthening the balance sheet [62][64] Question: Direction of costs and capital generation - Management reiterated guidance for lower costs in current euros for 2025, with ongoing investments in transformation [70][73] - Capital generation is expected to improve in the second half, with excess capital above 13% to be distributed as share buybacks, subject to regulatory approvals [76][77] Question: Benefits of transformation and consumer segment performance - Management indicated that the benefits of transformation are still unfolding, with expectations for further improvements in cost-to-income ratios [82][83] - The consumer segment is experiencing challenges due to lower car volumes in Europe, but management is optimistic about future performance as conditions normalize [88][89]