Banco Santander posts slight pre-tax profit miss in Q2, confirms outlook

Published 30/07/2025, 10:22
© Reuters.

Investing.com -- Banco Santander (BME:SAN) reported a 10% increase in its profit before tax (PBT) for the second quarter to €5.12 billion, missing the consensus estimates by 1%. 

The bank’s shares slid nearly 2% in Madrid.

Q2 attributable profit rose 7% to €3.43 billion, supported by higher income and resilient operating performance.

Net operating income grew 4% to €9.10 billion, while total income advanced 5% to €15.47 billion, both broadly in line with expectations.

The bank’s fully-loaded CET1 capital ratio stood at 12.98%, up 12 basis points quarter-on-quarter. Although slightly below Visible Alpha consensus of 13.12%, it remains 50 basis points above the mid-point of the group’s 12–13% target range, RBC Capital Markets analysts said. 

"The focus on today’s call will likely be on the benefits we should expect to accrue in future years from SAN taking advantage of the fact that it is running ahead of guidance to implement strategic investment," the wrote. 

Looking ahead, Santander reaffirmed its 2025 financial goals, including total revenue of approximately €62 billion and mid- to high-single-digit growth in net fee income on a constant-currency basis.

The group also expects to deliver at least €10 billion in share buybacks from 2025 and 2026 earnings and excess capital, ahead of its original timetable.

To that end, Santander announced a new €1.7 billion share buyback program, equivalent to roughly 25% of its first-half profit.

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