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]