Santander third-quarter profit climbs and maintains 2025 guidance

Banco Santander SA on Wednesday reported an increase in third-quarter profit and a record performance in the year-to-date, with the lender affirming its annual outlook.

Attributable profit rose 2.1% to EUR3.50 billion in the three months that ended September 30 from EUR3.43 billion a year earlier, despite total income fading 1.3% to EUR15.27 billion from EUR15.47 billion.

Hurting Santander's top line, net interest income declined 2.1% to EUR11.10 billion from EUR11.34 billion.

For the first nine months of the year overall, attributable profit shot up 11% to EUR10.34 billion from EUR9.31 billion. Total income edged up 0.6% to EUR46.28 billion from EUR46.19 billion, despite net interest income weakening 2.5% to EUR33.82 billion.

It was a "record" profit performance for the first nine months of the year, the lender said.

"Total customer base reached 178 million after adding more than seven million new customers over the past 12 months. Strong results were driven by good performance in net interest income, record levels of fee income and further efficiency gains, with continued improvement in credit quality," Santander said.

Operating expenses in the third quarter were reduced by 1.5% on-year to EUR6.02 billion. For the whole nine months, they were cut 1.2% to EUR18.38 billion.

Santander said the third-quarter results leave it on track to achieve its 2025 targets. It total income for the year of around EUR62 billion and a CET1 ratio of 13%. The CET1 ratio over the first nine months improved to 13.1% from 12.5% a year prior.

"The bank reaffirms 2025 targets and expects to distribute at least EUR10 billion in share buybacks from 2025 and 2026 earnings and excess capital," it added.