Santander says sustained customer growth and ongoing digital transformation helped drive a record quarter.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.Management said in releasing earnings Wednesday (Oct. 29) th ...

Santander says sustained customer growth and ongoing digital transformation helped drive a record quarter.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.Management said in releasing earnings Wednesday (Oct. 29) th ...

By Jesús Aguado MADRID (Reuters) -Santander expects to meet its higher profit goals in 2025 after third quarter net profit beat forecasts thanks to lending growth in the U.S. and efficiency gains that offset weakness in Brazil. Santander's Executive Chair Ana Botin has said the bank's geographical spread - it operates in ten core markets - helps act as a stabiliser in an uncertain global environment. Underlying net profit in the U.S., its fifth-largest market, rose 64% supported by higher lending income ...

Banco Santander (NYSE:SAN) Q3 2025 Earnings Call October 29, 2025 05:00 AM ET Company ParticipantsHéctor Grisi - CEOJosé García Cantera - CFOAndrea Filtri - Managing Director and Head of Mediobanca ResearchBorja Ramirez Segura - Director of Banks Equity ResearchMiruna Chirea - Senior Associate of Iberian BanksCarlos Peixoto - Equity Research of Banking and Other Financials and Senior DirectorPablo de la Torre Cuevas - Equity Research Assistant VP of European BanksFrancisco Riquel - Head of Equity ResearchAl ...

Banco Santander (NYSE:SAN) Q3 2025 Earnings Call October 29, 2025 05:00 AM ET Company ParticipantsHéctor Grisi - CEOJosé García Cantera - CFOBorja Ramirez - Director of Banks Equity ResearchAndrea Filtri - Managing Director and Head of Mediobanca ResearchMiruna Chirea - Senior Associate of Iberian BanksCarlos Peixoto - Equity Research of Banking and Other Financials and Senior DirectorPablo de la Torre Cuevas - Equity Research Assistant VP of European BanksFrancisco Riquel - Head of Equity ResearchAlvaro Se ...

Banco Santander (NYSE:SAN) Q3 2025 Earnings Call October 29, 2025 05:00 AM ET Speaker3Good morning and welcome to the third quarter 2025 results presentation. For the call today, we will be joined by Héctor Grisi, our Group CEO, and José García Cantera, our CFO. Héctor, over to you.Speaker0Thanks, Raul. Good morning everyone, and thank you for joining the Santander results presentation. We will follow the usual structure. First, I will go over our results with a special focus on the performance of our globa ...

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]

Core Viewpoint - Santander Bank is selling seven branches in Pennsylvania to Community Bank as part of its strategy to transform into a national, digital-first bank [1][2]. Group 1: Transaction Details - The branches are being sold to Community Bank, which operates around 200 branches across Pennsylvania, New York, Vermont, and Massachusetts [2]. - The sale does not include accounts from Openbank, Santander's digital bank, and is expected to close in the fourth quarter, pending regulatory approval [2][6]. - Community Bank has stated that all branches will remain open and all employees will be offered continued employment post-acquisition [6]. Group 2: Strategic Transformation - Santander Bank is refining its physical presence to optimize its footprint while continuing to invest in both digital offerings and physical branches [3]. - The bank launched Openbank in the U.S. in October, aiming to become a full-service digital bank by the end of 2025 [4]. - Openbank has already gained over 100,000 customers in the U.S. within its first six months, with growth exceeding expectations [5]. Group 3: Future Plans - Santander plans to expand Openbank's offerings to include certificates of deposit, payments, and checking accounts, while enhancing bank branches with new formats and personalized experiences [6]. - The acquisition of the branches will accelerate Community Bank's expansion in Pennsylvania, where it is already establishing additional new branches [7].

Core Viewpoint - HSBC is focusing on an Asia-centric growth strategy while Santander is reinforcing its presence in Europe and the Americas, leading to a comparison of their investment opportunities [2][22]. HSBC Overview - HSBC is intensifying its Asia-focused strategy, aiming to become a leading wealth manager for high-net-worth clients in Asia, which constitutes over half of its operations [3]. - The bank is expanding its wealth business in mainland China by launching lifestyle-based wealth centers, acquiring Citigroup's retail wealth portfolio, and enhancing digital capabilities [3]. - In India, HSBC plans to open 20 new branches, expanding from 26 branches in 14 cities, to capture the projected 50% growth in the ultra-high-net-worth population by 2028 [4]. - HSBC announced a $1.5 billion cost-saving plan tied to organizational simplification, with upfront charges estimated at $1.8 billion by 2026 [5]. - The bank is divesting operations in several countries, including the U.S., Canada, and Argentina, to sharpen focus and improve returns [6]. - Revenue generation has been subdued due to a challenging macroeconomic environment, with weak loan demand impacting top-line growth [7]. Santander Overview - Santander is streamlining operations and reallocating resources to strengthen its presence in high-growth markets across Europe and the Americas [8]. - The bank sold a 49% stake in its Polish banking unit, expecting to temporarily exceed its CET1 capital ratio target of 12-13% and plans to reinvest strategically [8]. - Approximately €3.2 billion in capital released from the sale will be returned to shareholders through buybacks, supporting a €10 billion buyback target for 2025-2026 [9]. - Santander plans to close around 20 retail branches in the U.S. to align with the shift to digital banking, supporting the expansion of its digital platform, Openbank [10]. - The One Transformation program aims to drive digitalization and operational efficiency, keeping Santander on track to meet its 2025 targets of €62 billion in revenues [11]. Earnings Estimates Comparison - HSBC's earnings estimates for 2025 and 2026 indicate growth of 5.1% and 3%, respectively, with recent revisions showing mixed trends [12]. - In contrast, Santander's earnings estimates suggest increases of 15.7% for 2025 and 7% for 2026, with upward revisions over the past month [14]. Price Performance and Valuation - Year-to-date, Santander's shares have increased by 76.6% on the NYSE, while HSBC's shares have gained 19.6% [16]. - HSBC is trading at a price/tangible book (P/TB) of 1.06X, higher than its five-year median of 0.75X, while Santander is at 1.36X, above its five-year median of 0.71X [18]. - HSBC's return on equity (ROE) stands at 12.55%, slightly above Santander's 12.26%, indicating efficient use of shareholder funds [20]. Investment Outlook - Santander is viewed as the better investment opportunity due to its stronger near-term earnings outlook and superior stock performance [22]. - HSBC's pivot to Asia and wealth management could yield significant long-term returns, but current revenue growth and earnings performance raise concerns [26].

One of the largest Spanish lenders, Banco Santander, S.A. (SAN) , is undertaking several steps to streamline operations and pivot toward high-growth markets in Europe and the Americas. In sync with this, on May 5, the company announced the sale of approximately 49% stake in its Polish banking business, Santander Bank Polska S.A., to Austrian bank Erste Group for €6.8 billion ($7.7 billion). In addition, Erste Group will acquire 50% of Santander Polska's asset management business (TFI), which is not currentl ...