
Santander's quarterly profit hits record as fees offset weak Mexico and Brazil
The euro zone's largest bank by market value reported a record fifth consecutive quarterly net profit, reaching 3.43 billion euros ($3.96 billion) in the April to June period, slightly exceeding analysts' expectations of 3.36 billion euros from a Reuters poll.
It also announced a new share buyback of 1.7 billion euros set to begin on Thursday, representing around 25% of the group's profit in the first half of 2025. The buyback is part of its previously announced 10 billion euros programme for 2025 and 2026.
The bank has benefited in the past from higher interest rates, while growth in key Latin American markets such as Brazil has given it an edge over more Europe-dependent rivals.
However, quarterly net profit in Mexico, its fourth-biggest market, fell 6.8% against a backdrop of geopolitical risks stemming from U.S. trade tariffs, particularly in that market, due to the depreciation of the Mexican peso, while net profit in Brazil, its second-biggest market after Spain, fell 16%.
A 2.4% rise in fees and a decline of 3.2% in provisions helped lift Santander's return on tangible equity ratio (ROTE), after the impact of additional Tier 1 (AT1) capital instruments, a measure of profitability, to 16.2% in the quarter, compared with 15.8% at the end of March. It said it was on track to meet its target of around 16.5% this year.
It said it was also on its path to meet its full-year revenue target of around 62 billion euros, while its core Tier-1 capital ratio rose 10 basis points from the previous quarter to 13% by end-June, at the top end of the bank's operating range of 12% to 13% after achieving the 2025 target ahead of schedule.
($1 = 0.8669 euros)

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