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- Revenue up 8% (+10% in constant euros) to €62.2 billion[1]
- Return on tangible equity (RoTE) increased to 16.3% from 15.1%
- Santander expects to return €10 billion to shareholders through share buybacks from 2025 and 2026 earnings and anticipated excess capital, in addition to its standard cash dividend distribution[2]
Don't miss these key takeways
• Net interest income increased by 8%, driven by net customer growth of eight million to 173 million.
• Net fee income rose by 8%, with robust commercial dynamics and higher customer activity.
• Operating expenses increased by 2%, reflecting the bank’s transformation (ONE Transformation) towards a simpler, more digital and integrated model. As a result, efficiency improved by over two percentage points to 41.8%.
• Loan-loss provisions fell 1% thanks to solid credit quality driven by the bank’s low risk profile, low unemployment, good economic performance and favourable interest rates context. Cost of risk improved to 1.15% (-3 basis points).
• In the fourth quarter, attributable profit grew 11% versus same period last year to €3,265 million.
• Fully-loaded CET1 reached 12.8%, up 0.5 percentage points versus last year thanks to strong organic capital generation.
• Santander exceeded upgraded targets for 2024: revenue +10% in constant euros (vs target of high-single digit growth); efficiency at 41.8% (vs c.42%); cost of risk of 1.15% (vs c.1.2%); RoTE at 16.3% (vs >16%); and FL CET1 of 12.8% (vs >12%).
• In 2025, the bank is targeting c.€62 billion in revenue; mid-high single digit growth in net fee income; lower costs in euros; cost of risk of c.1.15%; RoTE of >17% (c.16.5% post-AT1); and CET1 of 13%.
• Santander announces today a new share buyback programme for c.25% of the profit in the second half of 2024[2]
We have announced record results for the third consecutive year as we continue to grow revenue, profitability and returns. During the year, income increased by 8% with eight million new customers; return on tangible equity improving to 16.3%; and cash dividend per share paid in the year up 39%.
Santander achieved an attributable profit of €12,574 million in 2024, a 14% increase versus 2023, thanks to strong revenue growth across all global businesses and regions, as well as the addition of eight million new customers to 173 million, with record results for the third year in a row. In addition, the group maintained disciplined cost control, with the best efficiency ratio in 15 years. Tax on profit in the period was €5,283 million, up 18%, resulting in an effective tax rate of 28%. Profit in the fourth quarter was €3,265 million, up 11% versus the same quarter of 2023, also representing record results for the third consecutive quarter.
The group continued to increase profitability and shareholder value creation, with a return on tangible equity (RoTE) of 16.3%; earnings per share (EPS) of €0.77, up 18%, and tangible net asset value (TNAV) per share of €5.24 at the end of the year. Including both the final cash dividend from 2023 results paid in May and the interim 2024 cash dividend paid in November, total value creation (TNAV plus cash dividend per share) increased 14%.
In 2024, customer funds (deposits and mutual funds) grew 4% in constant euros, with deposits up by 2% in constant euros, driven by the ongoing increase in the number of customers served. Loans rose 1% in constant euros to €1.02 trillion, driven by growth in Consumer, Payments and Wealth. In CIB, they remained stable, while in Retail they fell slightly, as the higher volumes in South America and Mexico partially offset the decline in Europe, caused by Spain due to early repayments and the UK as the bank prioritized profitability, and in the US with its ongoing focus on capital optimization.
Total income increased 8% (+10% in constant euros) to €62,211 million. The rise in both customer activity and good margin management drove an 8% increase in net interest income, with growth in all businesses and regions, especially Retail. In Retail, net interest income increased 11% in constant euros, with growth in most countries, but especially in South America, driven by higher volumes and lower deposit costs, and in Europe, due to good margin management. The exceptions were the UK, with lower mortgage volumes (in line with the strategy) and higher cost of deposits (competitive market), and the US, due to lower volumes. These results reflect the strength of Santander’s diversified business model, with local and global scale. The group’s net fee income was up 8% to €13,010 million. In constant euros, it grew 11%, supported by higher activity in most global businesses. More than 95% of total revenue is customer related, reflecting the quality and recurrence of the bank’s results.
1 Variations are year-on-year unless otherwise stated.
2 Share buyback target from 2025 and 2026 earnings including: i) the buybacks resulting from application of our existing shareholder remuneration policy plus ii) additional buybacks to distribute excesses of our CET1. Existing shareholder remuneration policy defined as c.50% of Group reported profit (excluding non-cash, non-capital ratios impact items), distributed c.50% in cash dividends and c.50% in share buybacks. The implementation of the shareholder remuneration policy and any share buybacks to distribute CET1 surpluses are subject to future corporate and regulatory decisions and approvals.
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