Statement from Christian Sewing Regarding Q2 Results 2025, Sent to All Company Employees Via Our Website
Santander Aims for Continued Growth and Profitability
After a strong first half of 2025, Santander has announced its strategy for the future, focusing on profitable growth and capital optimization. The bank's pre-tax profit more than doubled to 5.3 billion euros in the first half of the year, and its record profit of €6,833 million represents a 13% increase year-over-year [1].
The bank's Return on Tangible Equity (RoTE) improved by 0.9 percentage points, with Earnings Per Share (EPS) growing to €0.43. The bank's tangible net asset value per share also increased. Santander's CET 1 capital ratio stands at 14.2% [1].
Santander aims to further grow its customer funds, with deposits increasing by 4% and mutual funds growing by 17%. The bank's loan portfolio is also expanding, with a 1% increase, led by the Consumer, Wealth, and Payments sectors. The bank plans to grow loans selectively in these key segments while managing volumes in other areas [1].
The bank's strategy also involves a focus on profitable growth and capital optimization, with declines in less profitable segments such as some SME and corporate retail lending. This strategy is expected to continue delivering improving profitability, shareholder value creation, and growth [1].
The economic environment is challenging due to discussions about tariffs and global trade relations, and the geopolitical situation is tense, as shown by the escalation in the Middle East conflict. However, Santander sees growing interest in Germany and Europe among its clients due to global shifts. The bank wants to build bridges for companies and investors with its strong position in the home market [1].
Santander's CEO, Christian, expressed gratitude for the extraordinary commitment of employees in the first half of the year. The bank's optimism for the future is primarily due to the dedication, focus, and discipline of its employees [1]. If one-off effects from last year's Postbank proceedings are excluded, pre-tax profit is still up by more than a third [1].
All four divisions of the bank (Corporate Bank, Investment Bank, Private Bank, and Asset Management) reported double-digit profit growth for the first half of the year, achieving a return on tangible equity (RoTE) of around 10% or more [1]. The bank wants to further strengthen cooperation across all areas and create an environment guided by responsibility, team spirit, and initiative-taking.
[1] Source: Santander's official press release.
In line with Santander's focus on profitable growth and capital optimization, the bank plans to expand its business by growing customer funds, increasing deposits, and boosting mutual funds [1]. To ensure this growth remains profitable, Santander will selectively grow loans in key segments such as Consumer, Wealth, and Payments, while managing volumes in other areas [1]. As part of its asset management division, Santander aims to achieve double-digit profit growth and a return on tangible equity (RoTE) of around 10% or more [1].
