Banco Santander sets a new profit record with €6.833 billion, up 13%, in the first half of 2025.

Banco Santander has posted a record first-half profit of €6.833 billion. Through June, the bank increased its net income by 13% compared to the same period in 2024. From April to June alone, profits reached €3.431 billion, marking its fifth consecutive record quarter. In Spain alone, profits increased by nearly 29%, reaching €2.258 billion at the end of the quarter, despite the interest rate headwinds in the eurozone.

The European Central Bank's (ECB) reversal of its monetary policy, after driving official interest rates from 4.5% to the current 2.15% over the last year, has caused net interest income in markets such as Spain to fall to rates close to 2%. However, Santander has managed to stabilize the situation in the second quarter, with 1.5% growth in Spain. At the group level and for the first half of this year, this item fell by 3%, to €22.716 billion. The fall in this differential is offset by the increase in fees, which rose again and, at the end of June, increased by 3%, to €6.684 billion , managing to keep group revenues stable at €31.01 billion, €40 million below the first half of last year.

The entity chaired by Ana Botín achieved growth across all business lines . The most significant, the retail segment, increased its revenue by 2%, with a profit contributed to the group of €3.7 billion, 14% more than in the first half of 2024. The other 50% of the group's business is distributed among Consumer Bank (which also includes Openbank), with revenues of €6.4 billion (up 2%), although net income fell 1% to €1 billion; the corporate and investment segment saw profits grow 15% to €1.5 billion; while high-net-worth management and private banking continue to show the best growth figures. This is a cross-sector focus.

The Wealth business increased its revenue by 14% to €2 billion, and its contribution to the group's net profit is now 7%, with €900 million and a growth rate of 24%. Banco Santander increased its assets under management by 11% to €514 billion in a clear commitment to private banking . Its asset management division, Santander Asset Management, recorded the greatest growth, with 20% more revenue (up to €289 million), while insurance sales increased by another 25%. Its premium banking business surpassed €1.3 billion in revenue, up 2%.

In the retail sector, the company continued to grow its customer base, in line with the start of the year. The number of active customers increased by 4%, surpassing 80 million .

The fully-loaded CET1 capital ratio closed the half-year at 13%, in line with the bank's 2025 target. The sale of 49% of Santander Polska (in Poland) to Erste Group contributed 100 basis points of capital, of which 50 will be used through the announced share buyback—worth €3.2 billion—following this transaction; and another 50 basis points will be used through the acquisition of TSB, which will close in early 2026, according to the bank's results presentation. Return on tangible equity (RoTE) stood at 16%.

At the end of June, Banco Santander saw its loan portfolio decrease by 1% to €599 billion, compared to deposits that increased by 3% to €643 billion. Investment funds under management have assets of €105 billion, an 18% increase.

The Spanish business generated a net profit of €2.258 billion, up 28.6% compared to the first half of 2024, despite continued declines in net interest income. The spread that banks achieve from the difference between what they charge for loans and what they pay for deposits closed June at €3.585 billion, down 1.9% (it contracted 2% from January to March, so the bank managed to reverse the situation in the second quarter). In contrast, the bank's revenue increased by 1.3% to €1.503 billion from fees. The retail business alone contributes nearly 40% of the total.

These figures are the first presented by Banco Santander after announcing the purchase of TSB, the British subsidiary of Banco Sabadell , for a value of approximately €3.1 billion. The transaction is expected to close during the first quarter of 2026. For now, the bank's accounts in the United Kingdom reflect a continued decline in its lending and deposit business, which fell 2% compared to 2024 figures. Net income fell 12% to €560 million, impacted by provisions and restructuring expenses. The bank insists it is focused on prioritizing the profitability and "balance sheet optimization" of its British business.

In Brazil , the bank managed to close a stable first half of the year, with a net profit of €996 million , despite a 9.5% drop in net interest income and a 10.7% drop in commissions (which fell another 10.7%) in a context of widespread interest rate declines and a currency, the Brazilian real, whose depreciation is affecting the accounts of Spanish listed companies there. In the US, the bank maintains a strong growth rate, with a net profit of €839 million, supported by the growth in net interest income and commissions (which increased by 27%), in addition to lower provisions for the auto business.

Regarding shareholder remuneration, Santander maintains its commitment to distribute up to €10 billion between share buybacks and cash between 2025 and 2026, with a payout ratio (the percentage of profit distributed among shareholders) of 50%.