- Santander plans to spend €10 billion on share buybacks in 2025 and 2026, partially using excess capital.
- The bank reported a net income of €3.27 billion, surpassing the estimated €2.93 billion.
- Net provision for loan losses was €3.11 billion, which is lower than the estimated €3.25 billion.
- Net interest income reached €11.99 billion, exceeding the expected €11.33 billion.
- Total income for Santander amounted to €16.03 billion.
- The CET1 ratio fully-loaded came in at 12.8%, above the estimate of 12.5%.
- Return on equity was reported at 13.3%, outperforming the estimate of 11.2%.
- Return on tangible equity was +16.6%, higher than the estimated +15.5%.
- Efficiency ratio was 42.3%, slightly better than the forecasted 43.2%.
- Cost of risk was maintained at 1.15%, aligned with expectations for 2024.
- Net fee income was €3.34 billion, surpassing the estimated €3.17 billion.
- Operating expenses were slightly higher than expected, at €6.77 billion against a forecast of €6.6 billion.
- Tangible book value per share was €5.24, higher than the €5.08 estimate.
- Underlying operating income was €9.25 billion, beating the estimate of €8.7 billion.
- Underlying pretax profit came in at €4.60 billion, surpassing the expected €4.49 billion.
- Customer deposits totaled €1.06 trillion, above the estimated €1.04 trillion.
- For 2024, the CET1 ratio fully-loaded remained at 12.8%, against an expected 12.6%.
- Efficiency ratio for 2024 was better than anticipated at 41.8% versus 42.3%.
- Santander targets approximately €62 billion in revenue for 2025 and a CET1 ratio of 13%.
- A new €1.6 billion buyback will be conducted against 2024 profits.
- Market sentiment includes 23 buys, 6 holds, and 1 sell recommendations.
A look at Banco Santander Sa Smart Scores
Factor | Score | Magnitude |
---|---|---|
Value | 5 | |
Dividend | 4 | |
Growth | 4 | |
Resilience | 2 | |
Momentum | 4 | |
OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Banco Santander SA holds strong positions in Value, Dividend, Growth, and Momentum with scores of 5, 4, 4, and 4 respectively. This indicates that the company is performing well in terms of its value proposition, dividend payouts, growth potential, and overall market momentum. However, its Resilience score of 2 suggests some vulnerability in adverse market conditions. Despite this, Banco Santander SA’s diverse offerings across retail, commercial, and private banking, along with asset management services, position it well for long-term success.
Banco Santander SA’s robust Value, Dividend, Growth, and Momentum scores highlight its favorable outlook in the market, showcasing strong fundamentals and growth potential. While its Resilience score is lower, indicating some room for improvement in managing risks, the bank’s wide array of services including consumer credit, mortgage loans, insurance, and investment banking bolster its position for sustained growth in the long term. Overall, Banco Santander SA’s strategic focus on attracting deposits and providing comprehensive financial services bodes well for its future performance.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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