Santander observes a significant 19% boost in earnings per share, attributable to a historic first-half profit of €6,833 million.
Santander Reports Strong Financial Performance in Q2 2025
Santander, the global banking giant, has announced impressive financial results for the second quarter of 2025. The bank reported a profit of €3.43 billion, marking a 7% year-over-year increase, and a post-tax Return on Tangible Equity (RoTE) of 16%, slightly below its full-year target of 16.5%[1][3][5].
For the first half of 2025, Santander's attributable profit stood at €6.83 billion, a 13% increase compared to the same period last year, and earnings per share rose by 19% to €0.43[5]. Total revenue (total income) for Q2 was €15.47 billion, growing 5% year-over-year, with net operating income up 4% to €9.10 billion. For the full year 2025, Santander projects revenues of approximately €62 billion, supported by mid to high single-digit growth in net fee income[3].
The bank's strong financial performance is also reflected in its operational efficiency. The efficiency ratio, approximated by Santander’s cost-to-income ratio, improved to 41.5%, a 1.5 percentage point enhancement from prior periods, driven by automation and cost discipline[1]. This ratio reflects operational efficiency by showing costs as a share of income.
Customer growth remains positive, with customer funds (deposits plus mutual funds) rising 6% in constant euros in H1 2025. Deposits grew 4%, mutual funds increased 17%, and loans rose 1% to €1 trillion, reflecting growth in consumer, wealth, and payments segments, offset by a decline in corporate and SME lending[5].
Santander's cost-cutting initiatives have been effective, with the bank's investments and initiatives helping reduce costs by -0.4% in euros in the first half of 2025. Since December 2022, the bank has achieved cumulative savings of nearly €550 million due to the replacement of legacy technology with global technology platforms[1][3][5].
The bank also has an active capital return strategy, including a €1.7 billion share buyback program announced in 2025, as part of a broader €10 billion shareholder return plan, demonstrating confidence in its capital position[1][3].
In a significant milestone, Santander Spain completed the migration of its core banking system in June, marking a major step towards modernising its technology infrastructure[1].
The bank's executive chair is Ana Botín, who has led the bank through this period of growth and transformation. Under her leadership, Santander has delivered improving profitability and growth in the past quarter.
In summary, Santander's 2025 financial results show strong profitability and growth. The bank's efficiency ratio is at its best in more than 15 years, customer funds are growing, and the bank has an active share buyback program totaling billions of euros. Santander intends to allocate at least €10bn to shareholder remuneration in the form of share buybacks, corresponding to the 2025 and 2026 results, as well as to the expected excess capital.
Investors considering business opportunities in the finance sector might find Santander's strong Q2 2025 performance noteworthy, given its significant year-over-year profit increase and improved cost-to-income ratio. Additionally, personal-finance enthusiasts might be interested to know that Santander plans to return €10 billion to shareholders through share buybacks, reinforcing the bank's confidence in its capital position and potential for shareholder remuneration.
