Core Insights - Santander reported a record attributable profit of €10.3 billion for the first nine months of 2025, marking an 11% increase year-over-year, driven by sustained customer growth and digital transformation efforts [2] - The bank's long-term profitability strategy focuses on streamlining its technology stack and enhancing digital relationships with its 178 million customers, which is a 7 million increase from the previous year [2] - The integration of Santander Consumer Finance and Openbank in Europe aims to simplify operations, reduce costs, and enhance product offerings, strengthening the bank's position in key markets like Germany [3] Digital Transformation - Santander's CEO emphasized the importance of simplification, automation, and technological capabilities, which are exceeding expectations for the end of 2025 [2] - Openbank, Santander's digital banking unit, has successfully attracted $6.75 billion in deposits and 162,000 new customers in the U.S., which is its fourth largest market [2] - The bank is transforming its retail operations to become a digital-first bank, combining advanced technology with the expertise of its teams [2] Payments Division Performance - Santander's payments division, PagoNxt, is performing well, with an EBITDA margin that has already surpassed the 2025 Investor Day target, reaching 32% [4] - The bank's U.S. business holds a significant share of the auto finance sector, which has faced scrutiny due to recent bankruptcies in the industry [5] - Santander's exposure to the auto finance sector includes a $77 million loan to First Brands, although this exposure is not considered material for the bank [6]

Core Insights - Santander reported a record attributable profit of €10.3 billion for the first nine months of 2025, marking an 11% increase year-over-year, driven by sustained customer growth and digital transformation efforts [2] - The bank's long-term profitability strategy focuses on streamlining its technology stack and enhancing digital relationships with its 178 million customers, which is a 7 million increase from the previous year [2] - The integration of Santander Consumer Finance and Openbank in Europe aims to simplify operations, reduce costs, and enhance product offerings, strengthening the bank's position in key markets like Germany [3] Digital Transformation - Santander's CEO emphasized the importance of simplification, automation, and technological capabilities, which are exceeding expectations for the end of 2025 [2] - Openbank, Santander's digital banking unit, has successfully attracted $6.75 billion in deposits and 162,000 new customers in the U.S., which is its fourth largest market [2] - The bank is transforming its retail operations to become a digital-first bank, combining advanced technology with the expertise of its teams [2] Payments Division Performance - Santander's payments division, PagoNxt, is performing well, with an EBITDA margin that has already surpassed the 2025 Investor Day target, reaching 32% [4] - The bank's U.S. business holds a significant share of the auto finance sector, which has faced scrutiny due to recent bankruptcies in the industry [5] - Santander's exposure to the auto finance sector includes a $77 million loan to First Brands, although this exposure is not considered material for the bank [6]

9M'25 Earnings Presentation For more details on APMs and non-IFRS measures, please see the 2024 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (the SEC) on 28 February 2025 (https://www.santander.com/content/dam/santander-com/en/documentos/informacion-sobre-resultados-semestrales-y-anuales-suministrada-a-la-sec/2025/sec-2024-annual-20-f-2024-en.pdf), as well as the section "Alternative performance measures" of Banco Santander, S.A. (Santander) Q3 2025 Financial Report, pub ...

Financial Performance Highlights - H1'25 attributable profit reached €6.83 billion, a 13% increase compared to H1'24 [22, 61] - Group revenue totaled €31.01 billion, showing a slight decrease of 0% in current euros but a 5% increase in constant euros compared to H1'24 [24] - The Group's RoTE post-AT1 stood at 16.0%, a 0.9 percentage point increase year-over-year [22] - TNAVps (Tangible Net Asset Value per Share) plus Cash DPS (Dividend Per Share) increased by 16% year-over-year [22, 57] Business Segment Performance - Retail banking achieved a RoTE post-AT1 of 17.2% with a profit of €3.7 billion [30, 33] - CIB (Corporate & Investment Banking) reported a RoTE post-AT1 of 20.8% and a profit of €1.5 billion [30, 39] - Wealth Management saw a RoTE post-AT1 of 67.3% and a profit of €948 million [30, 43] - Payments, including PagoNxt and Cards, reported a profit of €335 million, with PagoNxt EBITDA margin at 28.8% [30, 50] Strategic Initiatives and Capital Allocation - The company is ahead of its Investor Day 2025 targets, including profitability and shareholder remuneration [17] - The company plans to distribute approximately 50% of Group reported profit as shareholder remuneration, split evenly between cash dividends and share buybacks [19] - The company aims for at least €10 billion in share buybacks for 2025 and 2026 earnings [18, 88]

Group 1: Santander's Sale and Partnership - Santander is selling approximately 49% of Santander Polska's share capital and 50% of its Polish asset management business to Erste Group for $7.9 billion [1][2] - The deal includes a partnership where Santander will provide Erste access to its payment system, allowing both banks to explore opportunities in payments, particularly with Santander Polska post-completion [1][2] Group 2: Corporate and Investment Banking Collaboration - Santander and Erste are forming a corporate and investment banking partnership to leverage each other's regional strengths, offering local solutions and market insights to corporate and institutional clients through a referral model [3] - This partnership aims to facilitate seamless client interactions and service offerings [3] Group 3: Economic Outlook and Strategic Focus - Santander's Executive Chair, Ana Botín, highlighted the bank's focus on helping clients manage volatility related to U.S. tariffs and geopolitical uncertainty, which has contributed to a decline in the five-year growth forecast for the world economy to 3.1%, the lowest in 16 years [4] - The bank is leveraging its global scale and diversification as stabilizers in the current economic environment, anticipating continued profitability growth by 2025 [5] Group 4: Importance of Real-Time Payments - Research indicates that offering real-time payments is crucial for banks to attract and retain small and medium-sized business (SMB) clients, with many SMBs willing to pay fees for instant payment advantages [6][7] - Specifically, 88% of the smallest SMBs, those with annual revenues of less than $100,000, would be willing to pay a percentage fee for instant payments [7]