# Quarterly Shareholder Report - 2025 January - December 2025 ## Key figures Group 2025 In 2025, attributable profit increased 12% year-on-year to €14,101 million | | 2025 | change/ 2024 | | --- | --- | --- | | Total income | €62,390mn | 0.3% | | Net operating income | €36,665mn | 1.3% | | Profit before tax | €20,867mn | 9.7% | | Profit attributable to the parent | €14,101mn | 12.1% | *Note: Underlying income statement.* ### Solid balance sheet and organic capital build | | Dec-25 | change/ Dec-24 | | --- | --- | --- | | Total assets | €1,867,515mn | 1.7% | | Loans and advances to customers | €1,037,288mn | (1.6%) | | Customer deposits | €1,041,200mn | (1.4%) | | Total funds | €1,363,160mn | 1.1% | *Notes: total funds includes customer deposits, mutual funds, pension funds and managed portfolios. If we include loans, deposits and funds associated with the Poland disposal, as at 31 December 2025 loans and advances to customers would have been €1,076,315mn; customer deposits €1,095,827mn and total funds €1,426,432mn.* | | Dec-25 | Dec-24 | | --- | --- | --- | | Phased-in CET1 ratio | 13.5% | 12.8% | ### Higher profitability and double-digit shareholder value creation | | change/Dec-24 | | --- | --- | | TNAVps + Cash DPS | +14% | *TNAVps + Cash DPS includes the €11.00 cent cash dividend per share paid in May 2025 and the €11.50 cent cash dividend per share paid in November 2025, both forming part of our shareholder remuneration policy.* | | 2025 | change/Dec-24 | | --- | --- | --- | | EPS | €0.91 | +17.3% | ### Credit quality remains robust | | Dec-25 | Dec-24 | | --- | --- | --- | | Cost of risk | 1.15% | 1.15% | | NPL ratio | 2.91% | 3.05% | | NPL coverage ratio | 66% | 65% | ### ONE Transformation and global scale keep accelerating operational leverage and profitable growth | | 2025 | 2024 | | --- | --- | --- | | RoTE (post-AT1) | 16.3% | 15.5% | | Efficiency ratio | 41.2% | 41.8% | **Total income** In a less favourable environment than initially expected, shaped by geopolitical and trade tensions and lower interest rates, total income was flat year-on-year, achieving our 2025 target. In constant euros, it was up 4%, underpinned by a positive net fee income performance (+9%), boosted by higher customer activity, network benefits and greater collaboration between our global businesses, accompanied by a solid net interest income performance. **Ratios** Credit quality remained robust, supported by our good risk management and low unemployment levels across our footprint. The NPL ratio improved 14bps year-on-year to 2.91%, reaching the lowest recorded levels in 16 years. The NPL coverage ratio delivered a 2pp increase year-on year to 66%. Total loan-loss reserves ended the year at €22,869mn. The Group’s cost of risk was stable year-on-year at 1.15%, in line with our target for 2025. **Profitability** Profitability improved significantly year-on-year with RoTE (post-AT1) increasing 0.8pp to 16.3% in 2025, compared to 15.5% in 2024, in line with our year-end target. ## Global businesses performance in 2025 ### Retail & Commercial Banking Global business integrating our retail and commercial banking activities. ONE Transformation continues to deliver tangible progress: fees (+6%), cost per active customer (-4%) and high profitability levels. Loans rose YoY supported by mortgages, mainly in Europe, Brazil and Mexico. Deposits (+4%) and mutual funds (+16%) up in most countries, on the back of higher transactionality. Strong profit growth YoY (+9%), on the back of higher fees and effective risk management, with costs under control. *Note: data and YoY changes in constant euros.* - Loans: €601bn (+1%) - Deposits: €662bn (+4%) - Mutual funds: €115bn (+16%) - Efficiency: 39.4% (-0.1pp) - CoR: 0.88% (-5bps) - RoTE post-AT1: 17.7% (-0.4pp) --- ### Digital Consumer Bank A single model across our markets for our consumer and auto finance business and for Openbank. Progressing in our priority to become the preferred choice of our partners and end customers, while being the most cost competitive player. Loans rose 2% YoY, underpinned by auto lending, especially in Europe, in a market that picked up after a weak start to the year, and in Latin America. Deposits grew 5%, up across our footprint, supported by Openbank, in line with our deposit gathering strategy to reduce funding costs and lower NII volatility across the cycle. Profit +8% YoY, even after lower fiscal benefits linked to EVs, mainly backed by solid revenue growth and lower provisions. - New lending: €82bn (-8%) - Loans: €212bn (+2%) - Deposits: €130bn (+5%) - Efficiency: 40.6% (+0.5pp) - CoR: 2.10% (-7bps) - RoTE (post-AT1): 8.6% (-0.3pp) ### Corporate & Investment Banking Our global platform to support corporates and institutions. Good progress in our strategy focused on fees and capital-light business through our Global Markets and Global Banking initiatives, supporting enhanced value proposition and higher profitability while we maintain a leading position in efficiency. Profit rose 7% YoY, backed by fees (+9%), up across business lines but particularly in Global Banking in the US, and NII on the back of solid Global Markets financing activity. - Loans: €152bn (+15%) - Deposits: €140bn (+5%) - Efficiency: 45.5% (+0.0pp) - CoR: 0.15% (+5bps) - RoTE post-AT1: 19.1% (+1.8pp) ### Wealth Management & Insurance Common service models for our Private Banking, Asset Management and Insurance businesses. We continue to build the best wealth and insurance manager in Europe and the Americas, leveraging our leading global private banking platform and our best-in-class funds and insurance product factories. AuMs reached a new record of €558bn (+14% YoY), on the back of solid commercial activity and a positive market performance. GWPs rose 4% YoY, with a strong performance in the life savings business. Profit increased double digits YoY, supported by strong revenue growth across businesses reflecting our focus on fee generating activities. - AuMs: €558bn (+14%) - Net new money (PB): €20.0bn (6% of volumes*) - Net Sales (SAM): €3.7bn (2% of volumes*) - GWPs: €10.7bn (+4%) - Efficiency: 35.3% (-2.9pp) - RoTE post-AT1: 68.5% (-8.4pp) *\*Net new money as a % of PB’s 2024 customer assets and liabilities (CAL). Net sales as a % of SAM’s 2024 AuMs.* ### Payments Single infrastructures for our payment solutions: PagoNxt and Cards. - **PagoNxt**: Profit up €152mn YoY (excluding write-downs in Q2’24) driven by strong revenue (+16%, higher activity). EBITDA margin rose to 34.5% (+7.0pp). - **Cards**: Profit up 19% YoY, with NOI +24%, boosted by double-digit revenue growth (credit card activity). LLPs impacted by loan growth and a less favourable macro environments in some of our countries. - Spending: €338bn (+6%) - Average balance: €23bn (+13%) - Getnet TPV: €238bn (+14%) - Getnet number of transactions: +7% --- ## Santander in the market ### The SAN share closed 2025 with a 125.6% year-to-date increase - Start (31/12/2024): €4.465 - Maximum (30/12/2025): €10.156 - Minimum (02/01/2025): €4.255 - End (31/12/2025): €10.070 **Performance of the main indexes:** - SAN: +125.6% - Eurostoxx Banks: +80.3% - DJ Stoxx Banks: +66.9 - MSCI World Banks: +46.9% - Ibex 35: +49.3% - DJ Stoxx 50: +14.1% ### 93% of analysts recommend buying or holding SAN shares - Buy: 69% - Hold: 24% - Sell: 7% As at 31 December 2025, Santander’s market capitalization of €147,921 million* was the largest in the eurozone among financial institutions. **Shares and trading data** - Shares (number): 14,689,319,502 - Average daily turnover (number of shares): 29,696,669 - Share liquidity (%): 51 **Weighting of the Santander share in the main indices** - Stoxx Europe 600 Banks: 8.4% - Euro Stoxx Banks: 13.6% - Ibex 35: 17.0% *\*After cancelling the shares carried out on 30 December 2025 from the first share buyback programme against 2025 results. Without taking into account the cancellation of these shares, market capitalization of €149,895mn.* ### 3,518,729 shareholders trust Banco Santander **Distribution by type of shareholder** - Institutions: 64.52% - Retail: 34.15% - Board: 1.33%* **Distribution by geographic area** - Europe: 70.38% - The Americas: 28.29% - Other: 1.33% --- ## Shareholder remuneration charged against 2025 results In application of the current shareholder remuneration policy, the Group carried out the following against 2025 results: - A payment of an interim cash dividend of €11.50 cents per share, paid in November 2025, equivalent to c.25% of the Group’s underlying profit in H1 2025, 15% higher than its 2024 equivalent. Including the €11.00 cent dividend per share paid in May 2025, the cash dividend per share paid during 2025 was also 15% higher than that paid in 2024. - The first share buyback programme of €1.7 billion, carried out between 31 July 2025 and 23 December 2025. This programme puts us on track to reach our goal to distribute at least €10 billion through share buybacks charged against 2025 and 2026 results and against expected capital excess*. Total shareholder remuneration charged against H1 2025 results was €3,399 million, 11% higher than the remuneration charged against H1 2024 results. The amount is approximately 50% of H1 2025 attributable profit (around 25% through cash dividend payments and around 25% through share buybacks). The board of directors is expected to submit the approval of a final cash dividend, in accordance with the current shareholder remuneration policy, at the next general shareholders’ meeting. As a result, the total cash dividend per share charged against 2025 results is estimated to be approximately 15% higher than that charged against 2024 results. At year end, TNAV per share was €5.76. Including the final cash dividend against 2024 results and the interim cash dividend charged against 2025 results, TNAV per share increased 14% year-on-year. --- ## Our business model, based on three unique competitive advantages, is the foundation to continue generating value for our shareholders ### 1. Customer focus We are building a digital bank with branches to deliver the best customer experience and be the #1 bank for our customers. - Total customers: 180mn (+4.5% vs. Dec-24) - Active customers: 106mn (+3% vs. Dec-24) ### 2. Global and in-market scale Santander has a unique combination of global scale and local leadership. Our activities are organized under five global businesses, which support value creation based on the profitable growth and operational leverage that ONE Santander provides. ### 3. Diversification: business, geographical and balance sheet Well-balanced diversification between businesses and markets with a solid and simple balance sheet that gives us recurrent net operating income with low volatility and more predictable results. | | Retail | Consumer | CIB | Wealth | Payments | | --- | --- | --- | --- | --- | --- | | Gross loans and advances to customers (excl. reverse repos)¹ | 59% | 21% | 15% | 3% | 2% | | Customer funds¹ | 62% | 11% | 12% | 15% | - | | Contribution to Group revenue² | 50% | 21% | 13% | 7% | 9% | $^1$ As percentage of total operating areas. December 25. Including Poland. $^2$ As percentage of total operating areas, excluding the Corporate Centre. --- ## Delivering on all our 2025 targets | | Revenue | Fees | Cost base | CoR | CET1$^1$ | RoTE post-AT1 | TNAVps + Cash DPS | | --- | --- | --- | --- | --- | --- | --- | --- | | **2025** | €62.4bn | +9% | -1% (in euros) | 1.15% | 13.5% | 16.3% | +14% | | **Targets** | c.€62bn | Mid-high single digit growth | Down vs. 2024 (in euros) | c.1.15% | 13% (range: 12-13%) | 16.5% | Double-digit growth through-the-cycle | --- ## About us Banco Santander is a leading commercial bank, founded in 1857 and headquartered in Spain. Santander is a global bank organized under 5 global businesses, with a meaningful presence in 10 core markets in Europe, North America and South America, and is one of the largest banks in the world by market capitalization. Santander aims to be the best open financial services platform providing services to individuals, SMEs, corporates, financial institutions and governments. The bank’s purpose is to help people and businesses prosper in a simple, personal and fair way.