Banco Santander, Spain's largest lender, has reported a remarkable financial performance in the fourth quarter of 2024, marking a significant milestone for the bank. The bank's net profit surged by 11% year-on-year, reaching an impressive 3.265 billion euros in the final quarter. This outstanding achievement contributed to an annual net profit increase of 14%, totaling 12.574 billion euros for the year. These results reflect strong growth across various segments, particularly in retail operations.
Banco Santander's scale has enabled it to build its own technology platforms, effectively reducing costs and enhancing operating leverage. In 2024, the bank successfully added 8 million new customers, bringing its total customer base to a staggering 173 million. This expansion in customer activity was complemented by robust margin management, underpinning the bank's resilient performance amid challenging market conditions.
Shares of Banco Santander experienced a notable jump of 7.3% at 08:42 a.m. London time following these announcements. Investors responded positively to the bank's plans for further growth and profitability in 2025. The bank aims to conduct a substantial share buyback program, amounting to 10 billion euros (approximately $10.4 billion) from 2025 to 2026, showcasing its commitment to enhancing shareholder value.
Banco Santander's Executive Chair, Ana Botín, attributed the bank's success to its strategic approach in navigating challenging markets.
"Our track record shows that in a challenging market we outperform peers and in 2025 we expect to grow our bottom line and profitability – with revenue stable and costs falling. And we are only scratching the surface of our potential," – Ana Botín
Additionally, Botín emphasized the consistent record-breaking performance.
"We have announced record results for the third consecutive year as we continue to grow revenue, profitability and returns," – Ana Botín
The bank's consistent performance and strategic initiatives have positioned it for continued success in the coming years. Banco Santander expects to further strengthen its bottom line and profitability in 2025, leveraging its extensive customer base and technological capabilities.