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]