Santander Beats Profit Forecasts, Confident of Hitting 2025 Targets

Banco Santander reported a stronger-than-expected third-quarter net profit, driven by robust lending growth in the United States and improved efficiency that offset weaker performance in Brazil. The bank’s Executive Chair, Ana Botin, said its diversified presence across ten core markets continued to provide stability amid global economic uncertainty. Shares in Santander rose 3.4% following the results, extending gains of over 90% so far this year.

Underlying net profit in the U.S., the bank’s fifth-largest market, surged 64%, supported by higher lending income and increased fees from its corporate and investment banking division. However, currency depreciation in South America, including Brazil’s real, dragged net profit down 5.9% in the region, while profits in Argentina slumped 26% due to the weakening peso. In Spain, net profit dropped 10% following a decline in financial transaction gains, even as lending income edged up 1.7%.

Santander’s Chief Financial Officer Jose Garcia Cantera said net interest income in Spain is expected to remain steady or slightly lower in 2025, revising previous forecasts of a 4%–6% drop. Despite modest pressure on margins, the bank reaffirmed its full-year profitability and revenue targets, aiming for a 16.5% return on tangible equity (ROTE) and revenues of around €62 billion. Analysts from Barclays and Jefferies described the results as solid, with the bank’s efficiency ratio improving to 41.1% and its core tier-1 capital ratio strengthening to 13.1% by end-September.

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