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Banco Santander’s executive chair Ana Botín confirmed at the bank’s annual general meeting (AGM), which was broadcasted from its headquarters in Boadilla del Monte, that Santander was on track to meet its 2025 targets.
“Looking forward, we expect to continue increasing profitability in 2025. While we are monitoring the implications of recent tariff announcements in the US, it is in challenging times when the value of our diversification is most apparent. Our diversification acts as stabilizer in an uncertain global environment.
As such, we maintain all our targets for the year, including achieving around €62 billion in revenues; falling costs year-on-year in absolute terms; a stable cost of risk – with better performing markets offsetting others; and reaching a RoTE of c.16.5% post-AT1 and a CET1 of 13%.
In the first quarter of 2025, we maintained the positive trend seen in previous years by growing customers, with revenues expected to remain flattish and costs to decrease in current euros compared to the same period last year. Both, costs and revenues, are in line with our guidance for 2025, and as a result, efficiency improved c.50 basis points. Credit quality remains stable, with the cost of credit within the expected range.
As a result, in the first quarter we expect to: increase profitability relative to full-year 2024, achieving a RoTE of c.15.7% post-AT1, on a path to reach our full-year target of c.16.5%; grow tangible net asset value plus cash dividend per share of over 14%; while maintaining solid capital generation, with a CET1 ratio of 12.9% (up 10 basis points against FY 2024).”
Ana Botín, Banco Santander executive chair.
Global scale and macro
In her speech, Botín also discussed Santander’s continued growth and profitability driven by the bank’s transformation and solid labour markets across the group’s footprint, and the macro environment:
“ONE Transformation is our plan to harness the full potential of our global scale, by combining our local leadership with the platforms we are deploying across the Group. The idea behind this plan is to foster collaboration between our five global businesses — what we call “network collaboration” — as well as to offer the best solutions and scale them in all our markets through our global technology platform. This way we enhance customer experience while reducing the cost to serve, growing faster and continuing to increase profitability.
During the first months of 2025, we have seen increased geopolitical uncertainty and high volatility in the markets across the world. The current five-year growth forecast for the global economy stands at 3.1%, which is the lowest for 16 years.
The recent announcements in the US regarding tariffs reflect an escalation in trade tensions. As a bank our focus is on helping clients navigate the volatility and we are committed to doing that. Our markets, however, remain resilient. The employment data — which is the cornerstone of asset quality — is very good.
Spain is expected to grow 2.5% in 2025, above the European average, reaching record employment levels, with nearly 22 million people registered in the Social Security system. In Europe, we have a great challenge, and also a great opportunity to play a very significant role at a global level. It is time to take action and make the changes that lead to stronger and better growth, which will enable the European social model to be sustainable.”
Ana Botín, Banco Santander executive chair.
